HRA Agenda 05-01-2002
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AGENDA
MONTICELLO HOUSING AND REDEVELOPMENT AlJTHORITY
Wednesday, May 1,2002 - 6:00 p.m.
505 Walnut Street - Bridge Room
Commissioners:
Chair Brad Barger, Vice Chair Steve Andrews. Darrin Lahr, Dan Fric. and
Bill Fair.
Council Liaison:
Brian Stumpf.
Staff: Rick Wolfsteller, Ollie Koropchak, and Lori Kraemer.
Guest: Steve Johnson, I3lock 52.
Call to Order.
Consideration to approve the April 3,2002 HRA minutes.
Consideration of adding or removing items from the agenda.
Consent Agenda.
A. Consideration to approve amending thc Contract for Private Redevelopment
among the HRA, Front Porch Associates, and thc City or Monticello.
Consideration to hear progress by Steve Johnson fl.x potential redevelopment of Block
52.
6. Consideration to authorize payment of April liRA bills.
7. Consideration of Executive Director's Report.
8. Committee Reports.
9. Other Business.
10. Adjournment.
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MINUTES
MONTICELLO IIOLJSING AND REDEVELOPMENT AUTHORITY
Wednesday, April 3, 2()()2 - 7:()() p.m.
5()S Walnut Street - Bridge Room
( 'ommissioners:
Chair Dan hie, Vice Chair Brad Barger. Steve Andrews. Dan"in Lahr. and
Councill.iaison Brian Stumpf'.
Absent:
Bill Fair
Staff:
Riek Wolfsteller. Ollie Koropehak, and Lori Kraemer.
I. Call to Order.
Chair Frie called the meeting to order at 7 p.m.
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Consideration to approve the minutes of the March 6, 2002 HRA meetin!2:.
A MOTION WAS MADE BY STEVE ANDREWS TO APPROVE TIlE MINUTES OF
TIlE MARCIl 6, 2002 liRA MEETING. BRAD BARGER SECONDED THE
MOTION. ivIOTI()N CARRIED UNANIMOUSLY.
Consideration to armrove the minutes of the Special Mectit11.~ or March 26. 2002.
A MOTION WAS MADE BY BRAD BARGER TO APPROVE THE MINUTES OF
TIlE SPECIAL liRA MEETING ON MARCIl 26,2002. STEVE ANDREWS
SECONDED Till: MOTION. MOTION CARRIED UNANIMOUSLY.
3. Consideration of adding. or removin12. items from the agenda. None
4. Consent ^~enda.
A. Consideration to approve authorization to enter into the Contract f()\" Private
Redevelopment among the HRA. Hans Hagen Ilomes, Inc.. and the City of
Monticello. Rccommendation: To approve authorization to enter into the
Contract for Private Redevelopment among the lIRA. Hans Hagen Homes. Inc.
and the City 01' ivlonticello.
A tvlOTION W.\S i\IADE BY STEVE ANDRE'v\'S TO APPROVE AlJTHORIZA TION
TO I:NTER IN 1'0 rilL CONTRACT FOR PRIV ATE REDEVELOPMENT AMONG
Tl-IL liRA, II;\NS 11:\(iFN IIOMES, INC.. AND TI IE (Try OF MONTICELLO.
DARRIN L\IIR SLCONDI:l) TilE MOTION. MOTION CARRIED
UNANlivlOllSL Y.
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\-IRA Minutes - 04/03/02
Koropchak stated that Scott Douglas had asked if the Fire Dcpt. could use the Carlson
house for a test hurn. The memhers discussed the possihle negative impact this may
cause. Koropchak advised that the house needs to he do\vn and property cleaned up by
August 31. 2002. The lIRA members authorized the Fire Dept. to conduct their tcst
burn. although Lal1r still(l:lt it would not be good puhlie relations.
Considcration of follow-up hy Stew Johnson for potCJ1tial redevelopment within Block 52.
Johnson was unavailable I()r the April meeting. Koropchak advised that at the March
I-IR.A meeting. members heard a recap of the individual meetings held with Fraslie,
Springhorg. Johnson. and Ileaton. The cash buyouts for Froslic and Springborg appeared
high: however. Koropchak was to investigate replacement costs for Springborg. Johnson
and Heaton exprcssed an intcrest to dcvelop a partnership for redevelopment of the
southerly portion of Block 52 in two phases. The HRA was interested in the project and
requestcd Johnson and I katon work 011 pursuing potential partners and a consultant. and
come hack to the II RA.
Koropchak advised that Johnson and I leaton arc still progressing and working with
McComhs. Johnson advised Koropchak that they \vould be back in May with numbers
for the lIRA mcmbers. Koropchak also pointed out some other buildings that were
similar in value and what thcy \verc selling I()t'.
6.
Consideration to a lrow thc election of liRA orticers for ""002 and a rove the
appointment of eomll1issioners to committecs.
OFFICERS
In aecordancc with the liRA Byl~l\vs. the chair and vice-chair shall be electcd at the
annual meeting of the Board 01' Commissioncrs from ~1Il1l)l1g the Commissioncrs of the
Authority and shall hold l)rtice for l,me ycar or until their successors arc elected and
quali lied. The Secretary-Treasurer shall be appointed at the annual meeting of the Board
of Commissioners by the Commissioners.
A MOTION WAS t\L\DL BY DARRIN LAIIR TO NOMINATE AND ELECT BRAD
BARGER AS CIIAIR AND STE'vT ;\NDIU~\VS AS VICE CIIAIR OF TilE HRA FOR
YEAR 2002. AND APPROVE APPOINTMFNT OF RICK WOLFSTELLER AS
SECRI:TARY-TRI':.\SlIRFR FOR 2002. DAN FRIF SECONDED TilE t\IOTION.
MOTION C.\RRILD lll\.\NI~IOlISI.'y'.
C()\,vIMITTI.:I':S
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!-IRA Minutes - 04/03/02
lhe liRA. annually or as need he, apPl.lints a cOl1lmissioner(s) to various committees.
The only committee with By-l.aws is the Mep, the others are establishcd li.)l' a specific
research or purpose_ Although the Mep current status is inactive, the MCP Bylaws read
the various city cOlnmissions annually appoint their represcntative to the MCP Board of
Directors. Length of term is threc years. Andrews was appointed a second three-year
term beginning February lOO I cnding February 2004.
The Community Centcr Advisory Board now operatcs as an Ordinance of the City and
the members are appointcd by the City Council. Membership guidelines do not require
an liRA commissioner: although. the HRA sold the bonds to tinunce the center. Bob
Murray is a member ot'the Advisory Board.
A MOTION WAS MADE BY BRAD BARGER TO APPR.OVE THE APPOINTMENT
OF STEVE ANDREWS FOR REPRESENTATIVE TO THE MCP BOARD, BRAD
BARGER AND DARRIN I.AIIR AS REPRESENTATIVES TO THE MARKETING
COMMITTIT. DAN FRIE SECONDED TIlE MOTION. MOTION CARRIED
UNANIM()USI,Y.
7.
Consideration to review ti.ll' amendin!.! the I-IRA Business Subsidv Critcria and the liRA
Bylaws.
Koropchak advised that this is an annual housekeeping item and provided a copy of the
criteria and bylaws ti.)r the liRA mcmbers to review. Also provided to the HRA was a
summary of the TIF process and application. Koropchak advised that she did not believe
the lIRA has the best process ti.x applications and wondcred if by amending that process.
would it help developers to be better prepared when coming into thc City. Brad Barger
stated perhaps an outline \\ould help. but it was stated thCl'C is one provided. Darrin Lahr
stated he is in l~lVor lIt' the jobs/\\ages as they are, but is open to suggestions with regard
to the proccss ti.H' application, and stated they may need to research other cities for their
prOl.:ess. Koropchak stated she does have some cxamples she will provide.
Steve Andrews asked if everyol1l.' was cnmfi.)rtable with the current mceting time and it
was stated that an carl ier meeting time would be good.
A t\'IOTION \VAS 1\1.\\)[ B'{ BRAD BARGER TO AMEND THE \-IRA BYLAWS BY
CIIAN(lIN(; TilE RECillL:\R t\IITTING TllVIE TO ():OO P.M. DAN FRIE
SECOND\-:I) Till.: t\IOTION. t\IOTION CARRIED UNANIMOUSLY.
It \vas t'urther discussl..'d the pnssibility of cancelling the July 2002 meeting due to the
date being ,HIe day bl..'Ii.)re the ..J.lh ot' ./uly. member and starr vacltions. etc.. pcnding any
urgent matters, and it \\as del.:ided that they \\ill discllss this as it gets clnser.
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IIR^ Minutes - 04/03/02
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Considcration to rcvicw allll accept the vear-end financial reports jeJr the I IRA General
hll1d and IIF hllld as nrcnared h\' liRA Trcasurer Wolfstellcr.
Rick WolE;tcllcr pro\'ided thc 200 I ycar-end linancial reports ll)r the I [RA (iencral Fund
and TI F Fund. Ilc statcd hc did not get a chance to chl.'ck into local
matches/contri hutions. and he wi II go back at the end of the year to get the actual
numbers as there coulJ be additional transfers or payments. Feels the general HRA fund
is looking good. I [e did mention that the HRA has already committed $300.000 to be
used t"or an industrial park. District 22 showed thc lIRA's bond and Wolfsteller stated
that monies will corne out ot" that district for loan payments. ete.. and this number would
then be reduced. It was pointed out that they will receive $300.000 back from the Hans
I lagen project us well.
Koropchak stated she compared numbers from the auditors with thcir numbers and she
suggest to close out the NSP District and transfer to the Remmcle District as there is a
short l~dl. Koropchak stated closing Martics District and that Suburban will be
decertifying in August. Polycast District is to close out and she also thought possibly to
decerti fy Fay Mar. but Mark RutT suggested to run that another 4 years in ease of a short
I~dl in anothcr district. Rivcr Mill to close out that soils district. Tappers was decertitied
but still have deliciencies coming in.
Barger asked if therc were any other districts that \vmild bl.' o\ving a large amount to the
I[RA that KI)ropchak should notitY and shl.' advised they would be addressing that in the
next agenda item. Woll:stcller adviscd of outstanding bond debts. elc.. and stated that if
there is a number stated therl.' it means it still has to be paid out.
Koropchak also statcd that I.:hlcrs suggested taking the Direetor's salary out of the
administratin: fund as that is \vhat it is 1'IJr.
A MOTION WAS lVlADE BY BRAD BARGER TO ACCEPT TIlE YEAR~END
FINANCIAL RLPORTS FOR TilE lIRA GENERAL FUND AND TIF FUND AS
PRLPARED BY TREASlIRl.:R WOLFSTELLER. DARRIN LAHR SECONDED THE
lVIOTION. t\IOTION CARRIED UNANllVIOlJSLY.
9. Consideration to re\ie\\ TI F Cash Flow Proiections for TI F District Nos. 1-2. 1-). 1-6.
1-21. 1-22. and 1-2} as pl\.'pared bv "'lark RulT. Ehkrs & Associates.
Kornpchak ad\isl.-'d that 1\Iark Rull. I.:hkrs & :\ssociates. had run cash tlo\v projections
'.or the ah\)\l.-' named districts. RulT ad\ised that by selling the bond. in order to retire the
debt the IIR.\ mlldd need to build a }O.OOO square t"()ot office building to retire the $2
millil)l1 debt. I Ie also ad\ised that there is $1.28 million kn of the $:2.1 ll1illion.
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IIR^ Minutes - 04/03/02
assuming that the commercial huilding is buill. that would he left to spcnd by AugLlst
2004. Koropchak noted that this may be a goal of the I-IRA. Koropchak had Glomski run
numbers till' parking spaces assuming a :;0.000 sq. ft. oftice building.. Parking stalls
needed - 13X.
Ehlcrs had also provided current estimates and background regarding TIF Districts 2, 5
and 6. without the beginning. balance. -rhis inf()l"Ination was provided to the HRA The
TI F District 5 debt has been retired, District 2 has a deficit. and District 6 has a debt.
10. Consideration to discuss and set I-IRA Qoals for 2002.
Koropchak provilkd a list of questions regarding the year-end report as well as questions
on projections. I"or the II RA to discuss.
Koropchak also stated some possiblc goals the HRA could look at the for the coming year
sLlch as thc acquisition 01" Blocks 52. 54 and 36. It was suggested that the HRA apply for
a Redevelopment or Small Cities Grant.
Koropchak advised she !"elt the liRA should offer Springborg. Block 52. a lower offer
and Ict him stay in the building ti)r a number of years as she feels that property is crucial.
Shc also stated she l"cIt the liRA will need to spend surplus dollars in Block 52 for
parking. de. Froslie had etHllacted Koropchak again asking if the HRA is going to give
her an otTer on her property and Koropchak stated she would like an answer to give to
Froslie. The I IRA discussed having an appraisal done on the Froslie property and then
make an otTer.
They asked Koropchak to check with Froslie to see if she has a current appraisal. within
the last two years. and can the !-IRA look at iL Frie stated the HRA should value it by
how much income Froslie is getting, how much rent she is generating. They also
discussed if Ilans Ilagen Y\'nuld k interested in the Froslie property.
Koropchak also advised of thl.' HRA applying for grant for redevelopment. Ehlers stated
that the stale could ppssibly suggest ideas tl.)!" the city tl.)r a project and they would not
necessarily have to have a project in mind to apply tl.)r the grant.
Brad Barger and Darrin I.aln tdt it \vas hard to come up with a project and yet it is hard
to justify spending large amounts of money \\ith no project in mind. They felt they
\\ ould rather have a dl..'\\:loper determine \\hat kind of project yvould \vork. The members
dccided that they \\ould rather \\ait until ~teve Johnson comes back \vith a possible
proJect.
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IIR^ Minutes - 04/03/02
Koropchak stated she will talk to Froslie and let Springborg know the liRA is waiting fl.w
SteVL: Johnson' s report.
II.
Consideration of authori;:inl.! navment of March IIRi\ bills.
A MOTION WAS MADE BY DARRIN LAI-IR TO AUTHORIZE PAYMENT OF THE
MARCI-I lIRA BILLS. BRAD BARGER SECONDED THE MOTION. MOTION
CARRIED UNANIMOUSL Y.
12. Consideration of Executive Director's Rcport.
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Koropchak provided her report adding that Mikc Cyr did not close on the Ruff property
and got an extension on the Grubb property. Still anticipating to move forward.
The Il.ml1er Amoco site is now down.
She did meet with lJMC and looked at the Pfeftl.:r site, Chadwick site and the Remmele
sitL:. lJMC' seems to like the Pfcrfcr site and that area. The prospect team will visit on
Monday. Koropchak to prcpare a request Il.)r proposal. She asked the /-IRA how
important it is to tht.'m to be competitive with other cities. Brian Stumpf stated that he
would be intcrcstcd in ll.)rgiving some of the fees in ordcr to stay competitive, but could
not speak ll.)r the entirL: Council.
Production Stamping is coming in with Charlie Pfeffer to talk to city staff on Thursday.
Committec RL:f)orts.
Marketing advisL:d that the Chambcr is holding a golf tournamcnt on May 16 and
Koropchak stated shL: is planning to invite developcrs again.
14. Other Business.
None
15. Adiournment.
A fv[OTlON W/\S l'v1:\[)E BY BRAD BARGER TO ADJOURN TilE MEETING AT 9
PM. STEYF ANDREWS S[~CONDED THE ivlOTlON. l'vIOTION CARRIED
UNi\NIl\[()lISLY.
@:i:r'~~
IIR..\ Chair
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HRA Agenda - 5/0l/02
Consideration to approve amendin{! the Contract for Private Development amon{!
Front Porch Associates. L Tn. the City. and the HRA.
A. Reference and Back{!round:
The HRA is asked to amend the Contract for Private Development among Front Porch
Associates, LTD, the City, and the HRA. The amendment is necessary as the vacated
puhlic streets, Gruhbs, and Ruff parcels are being conveyed to Big Lake Lumber, not
Front Porch Associates, LTD., the developer. The dollar amount of the TIF assistance
remains the same as approved by the I IRA on March 26, 2001, and the Council on March
15 which was contingent upon the City's sale to the developer of the portion ofYine
Street right-of-way lying south of West 6th Street within the defined projcct area.
Dan Greensweig, Kennedy & Graven, is preparing the amendments to the Contract which
will pertain to the convcyance of land to Big Lake Lumber. Additionally, the HRA
attorney is preparing a purchase agreement on behalf of the city relative to conveying the
vacated street right-of-ways. Big Lake I ,umber and Front Porch Associates are preparing
an Agreement which will address the method ofrelease or conveyance of the parcels
from Big Lake Lumber to Front Porch. The HRA requests of copy of the Said
Agreement as an attachment to the Contract for Private Development.
The original Contract for Private Development among Front Porch Associates, L TD, the
City, and HRA was executed by all parties. The Council approved the Second
Amendment to the Contract at thcir mceting of April 22,2002.
B. Alternative Action:
1. A motion to approve amending the Contract for Private Dcvelopment among
Front Porch Associates, LTD, the City, and the HRA subject to review of the
Agreement between Big Lake Lumher and front Porch Associates by the HRA
Attorney.
2. A motion to dcny amending the Contract tl)r Private Development among Front
Porch Associatcs, LTD, the City, and the HRA.
3. A motion to table any action.
C. Recommendation:
The rccornmendation is alternative no. 1. It is the understanding, Mr. Cyr has resolved
the encroachment issues with Mr. Ruff and is ready to close on the vacated street right-of..
ways.
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ARTICLE I
Definitions
Section I. I. DefInitions. ]n this Agreement. unless a different meaning clearly appears from the context:
"Act" means Minnesota Statutes, Sections 469.00 I to 469.047, as amended
"Adjacent Property" means the property legally described at Exhibit A. A ftCI' construction of Townhouses
thereon, the term shall mean the Adjacent Property as so improved.
"Agreement" means this Agreement, as the same may be from time to time modifIed, amended, or
supplemented.
"Authority" means the Housing and Redevelopment Authority 111 and for the City of Monticello,
Minnesota.
"Big Lake Lumber" means Big Lal{c Lumbcr, Inc., a Minnesota corporation.
"Business Subsidy Act" means Minnesota Statutes. Section 116.1.993-.995, as amended.
"Certificate of Completion" lneans the certifIcation provided to the Developer pursuant to Section 4.4 of
this Agreement.
"City" means the City of Monticello. Minnesota.
''City Property" means that property that will become available for sale to Big Lake Lumber, Inc. for
later resale to the Developer after the City has completed the steps necessary to vacate the road dedications with
which it is currently encumbered. and that is legally described at Exhibit A.
"Completed Townhouse" means a Townhouse for which a Certificate of Completion has been issued.
"Construction Plans" means the plans. specifications, drawings and related documents on the construction
work to be perfi.mlled by the Developer on the Development Property which (a) shall be as detailed as the plans,
specifications. drawings and related documents which arc submitted to the appropriate building officials of the
Authority. and (b) shall inelude at least the following: (I) site plan; (2) foundation plan; (3) basement plans; (4)
tloor plans; (5) cross sections of each (length and width); (6) elevations (all sides); (7) landscape plan: and (8) such
other plans or supplements to the foregoing plans as the Authority may reasonably request to allow it to ascertain the
nature and quality of the proposed construction work.
''County'' means the County of Wright, Minnesota.
"Developer" means Front Porch Associates, LId.. a Minnesota corporation, or its perm itted successors and
assigns.
"Development Property" means the property legally described at Exhibit A. Arter the construction of
Townhouses thereon. the term shall mean the Development Property as improved.
"Event of Default" means an action by the Developer listed in Article IX of this Agreement.
"Holder" means the owner of a Mortgage.
"Material" means any effect or change which significantly alters the intended use of the Development
Property.
"Minimum Improvenlents" means the construction on the Development Property of 18 owner-occupied
[)J(j-21 () I :i2V4
MNllJl)-lJ7
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ARTICLE III
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Ae.!l!lisition of Prop~; Fimlneia~ssistlHlee
Section 3.I.Section 3.1. Ac..9!:I.isition~ld~onveyancc~ the Dev~menlX!'o~tyAequisiti~ and
Conv~nc~ftheDevelo2!!le.!!LPr~r!y. As of the date of this Agreement, the Developer has entered into one or
more purchase agreements for the Development Property. ~G€f}i--a&--+;@t---kml+--iH--$c&ti4n-J.,2-*ffH&-Ag!:G@IB<;Ht,
H@i-t.lwf Neithcr the City nor the Authority shall have any obligation to acquire any part of the Development
Property.
Section 3.2.Section 3.2. ~onditions of ~uisitio~<lI~Conv~nce; Purchase12ieeCondilio~ oj
Acquisitioll and Conveyance: Purchase Price. ~) The City shall convey title to and possession of the City Property
to t1~~)y-a-d€<W Big Lake Lumbcr pursuant to a purchase agrcement in substantially in the form of
the cleW purchase agreement attached as Exhibit D to this Agreement (the ~}.--+Iw-Gltj4;-Bb4gaWm--ffi
8+~Hw-C:~ffiiWr-ty--i>;-~.satis fact ion () ~fu.l-I4wi+lg-WJ:Im-a~" Pu rchase Agreem ent").
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a_PO+-iGY--4-~w:aI1€€l-IBJ:-lIw--C:-4ty-~lY--fl-f,-in-tM-~t:lw-.~~a-I-I--4av~~ty--w-it4a--1-ist
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\4op€lfi)'-fW ~f)--,.-~;"'+ --amJ-J.2-e-f-t4is Agreem CR-k--I-n--I4G-~'Ht--l4a-t -tlw--G-ity-_has-fail00-1e-GHFG..-ehj@€tiew;
wilh-iH-~Q}fIays~%ipt4 tIw-~lolwr~st-Hf-w~-€-itI1<!+-t:lw-.QgV%lopGr-Bl'-tIw-bity--may
l'lJ'-llw-g_i.>J_ing_O'f._-w+AA.~eti€€l-K~\wf.,--tgl'-ffi-inat0--t4i5--Agl:e.;%l€lH-l-,-B-PAA-~f.--w.H-iGh-thffi-Ag!:00H1<mt
s4al-l---OO--mll-l--an4--ve-ifl--aJ1(I-lWitlwl'-pafty-.s4a~-aH-y--lia1W-i w-\-l€lfCH-FH!€\f.+4G--6-ity---!;\1a-I \--IMV€-n-e---o&l-igatieJ1-1~
al17' ~ iAA-te-G\wJ:-4€-I~ -i-n--t\w-t AA;-.te-lIw--C---ity_t40PGfty-,~€lHhAA--tIw---goofI-faitMf:fe-rl&-{I~~00-v@-'
~,-,} Section 3.3.Section 3_5. SoiICondition~. The Developer acknowledges that neither the Authority nor
the City makes any representations or warranties as to the condition of the soils on the City Property or any other
part of the Developmcnt Property or the Adjacent Property or their fitness for eonstrllction of the Minimllm
hnprovements or any other purpose for which the Developer may make use of such property. The Developer further
agrees lhat it will indemnify, defend, and hold harmlcss the Authority, the City, and their governing body members.
officers, agents. servants, and employees, from any claims or actions arising out ofthe presence, if any, of hazardous
wastes or pollutants on the City Property or any other part of the Development Property or the Adjacent Property.
The Developer's obligations under this Section J-.-,} 3.3 shall survive termination of this Agrecment.
Section J-,{) 3.4. P~nl~lt..QfAdministrativ~_Cost~. The Developer agrees that it will pay upon demand by
the Authority, Administrative Costs (as hereafter defined). For the purposes of this Agreement, the term
.. Adm inistrative Costs" means out~of-pocket costs incurred by the Authority and attributable to or incurred in
connection with the negotiation and preparation of this Agreement and other documents and agreemenls in
connection with the developmenl contemplated hereunder. Out-of-pockct Administrative Costs shall be evidenced
by invoices, statements, or other reasonable written evidence of the costs incurred by the AlIlhority. As of the date
of this Agreemenl, the Developer has deposited $5,000 with the Authority to be applied toward Administrative
Costs. The amount by which this deposit exceeds the AlIthority's actllal Administrative Costs. if any, shall, upon
demand by the Developer, be returned to the Developer, bul no earlier than the datc on which the Developer receives
a Certificate of Completion pursuant to Section 4.4 of this Agreement.
.
Section J-,-7 3.5. Lm!1 ~(l!!isitiol!. In order to make development of the Minimum Improvements
economically feasible, the AlIthority will reimburse the Developer, in the manner and amounts sct forth herein, for
up to $220,000 of the Land Acquisition and Site Improvement Costs, hereby defined as: (i) up to $75,000 of the
Developer's cost of acquiring the City Property from Big Lake Lumber, (ii) up to $105,000 of the Developer's cost
of acquiring the remainder of the Development property; (iii) up to $27,700 of the cost of trunk fees paid by the
Developer and associated with providing sanitary sewer. storm sewer, and water services to the Development
Property, and (iv) up to $12,300 of the cosl of curb and gutter improvements paid by lhe Developer and dcsigned to
serve the Development Property. Any costs in excess of these respective amounts shall be the responsibility of the
Developer. Neithcr the Authority nor the City shall have any obligation to the Developer or to any third party with
rcspect to any defects in the construction of the Minimum Improvements-
Section ;-oS 3.6. Fi~\n.finb.....of..Land ACCl!!..isitio.!:!J:lIldSJ!cl!11~JVement Costs. The Authority will reimburse
the Developer for the Land Acquisition and Site Improvement Costs in accordance with the following terms and
conditions:
.
1).1(.;-2\ II I :,2v4
MN\911-97
7
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(a) Subject to the terms and conditions of this Agreement the Land Acquisition and Site
Improvement Costs will be paid together with interest on the unpaid balance thereofat the rate of7.25% per annum,
interest cOlllmeneing to accrue on the Closing Date. The Land Acquisition and Site Improvement Costs will be paid
by the Authority to the Developer in semi~annual installments payable on each february I and August I ("Payment
Dates") commencing August I, 2004 and concluding no later than the Termination Date. These payments will be
made from Available Tax Increment as defined in this Section ;.g 3.6 and from no other source.
(b) The term "Available Tax Increment" !lleans eighty percent (80%) of the Tax Increment as
calculatcd by the County and paid to the Authority during the six months preceding any Payment Date.
(c) The Authority makes no warranties or reprcsentations that Available Tax Increment will be
sufficient to pay all or any portion of the Land Acquisition and Site Improvement Costs. The Devcloper agrecs and
understands that Available Tax Increment is subject to calculation by the County and change in State law, that on
any Payment Date there may not be sufficient Available Tax Increment to pay all or any portion of the amount that
would otherwise be paid to the Developer on that Payment Date, and that all or a portion of Land Acquisition and
Site hllprovement Costs may remain unpaid after the Termination Date. The Developer further agrces and
understands that estimates of Available 'rax Increment provided by the Authority and its agents. officers, or
employees are estinlates only and not intended for the Developer's reliance.
(d) The Authority shall have no obligation to pay any portion of the Land Acquisition and Site
Improvement Costs that rerllains unpaid afler the Termination Date. The Authority may prepay all or part of the
Land Acquisition and Site Improvement Costs at any time.
(e) The Authority shall not be obligated to make any payment under this Section if: (i) there is an
Event of Default on the Developer's part under this Agreement that has not been cured; or (ii) the Developer has
failed to comply with the payment procedures described herein.
(0 At least 30 days before becoming entitled to receIve its initial payment hereunder (all such
payments to be made at the times and in accordance with the terms of this Agreement), the Developer must submit
to the Authority a payment request cel1ificate signed by its duly authorized representative stating: (i) that the
Developer has paid Land Acquisition and Site Improvement Costs in at least the amount of $220,000 for the
purposes and in the amounts described in Section J-,+ 3.5, (ii) that no Event of Default has occurred and is
continuing under this Agreement, and (iii) that the Developer has received a Certificate ofComplction for at least 12
Townhouses on the Development Property pursuant to Section 4.4 of this Agreement. The payment request
certificate mLlst be accompanied by evidence satisfactory to the City that the Land Acquisition and Site
Improvement Costs have been incurred and paid by the Developer.
Section J-,!J. 3.7. !i~lsirl_ess Subs~greement. The 8usiness Subsidy Act does not apply to this
Agreement because the assistance being provided hereunder is to promote housing opportunities within the City.
Section J-,.Q. 3.8. Use of Tax In~rclJ1ent. Except as set forth herein, the Authority shall have no obligation to
the Developer with regard to its use of Tax Incremcnt and may use Tax Increment for any lawful purposes, whether
set forth hercin or otherwise.
()J(j-2101 :i2v-l
MN 190-97
8
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(c) At least six additional Townhouses (for a total of eighteen Townhouses) shall be completed on the
Development Property by no later than December 3 1,2004;
(d) At least eight additional Townhouses shall be completed on the Adjacent Property by no later than
December 31,2007.
All work with respect to the Minimum Improvements to be constructed or provided by the Developer on
the Development Property and the Adjacent Property shall be in conforrnity with the Constrllction Plans as
subtnitted by the Developer and approved by the Authority.
The Developer agrees for itselt~ its successors and assigns, and every successor in interest to thc
Development Property, or the Adjacent Property, or any part thereof~ that the Developer, and such successors and
assigns, shall promptly begin and diligently prosecute to completion the construction of the Minimum
Improvements, and that such construction shall in any event be commenced and completed within the period
specified in this Section 4.3 of this Agreement. The obligation to construct the Minimum Improvements in
accordance with this Section touches and concerns the land, and shall run with the Development Property and thc
Adjacent Propel1y and be binding upon all successors and assigns to the Development Propel1y and the Adjacent
Property. After the date of this Agreement and until construction of the Minimum Improvements has been
completed, the Developer shall make reports, in such detail and at such times as may reasonably be requested by the
Authority, as to the actual progress of the Developer with respect to such construction.
.
Section 4.4. C:t,:rtiflca!~. of Completion. Certificate of.C:ompletion.(a) Promptly after cOlnpletion of thc
Minimum Improvements in accordance with those provisions of the Agreement rclating solely to the obligations of
thc Developer to construct the Minimum Improvements (including the dates for beginning and completion thereof),
the Authority will furnish the Developer with a Certificate shown as Exhibit 8. Such certification and such
determination shall not constitute evidence of compliance with or satisfaction of any obligation of the Developer to
any Holder of a Mortgage, or any insurer of a Mortgage, securing money loaned to finance the Minimum
Improvements, or any part thereof.
(b) Promptly after completion of each Townhouse in accordance with those provisions of the
Agreement relating solely to the obligations of the Developer to construct that Townhouse (ineluding the dates for
beginning and completion thereof), the Authority will furnish the Developer with a Certificate shown as Exhibit C.
Such certification and such dctennination shall not constitute evidence of compliance with or satisfaction of any
obligation of the Developer to any Holder of a Mortgage, or any insurer of a Mortgage, securing money loaned to
finance the Minimum hnprovements, or any part thercof.
(c) If the Authority shall refuse or fail to provide any certification in accordance with the provisions
of this Section 4.4 of this Agreement, the Authority shall, within thirty (30) days after written request by the
Developer, provide the Developer with a written statement, indicating in adequate detail in what respects the
Developer has fai led to cOlnplete the Minimum Improvements in accordance with the provisions of the Agreement,
or is otherwise in dcf~lult, and what measures or acts it will be neeessary, in the opinion of the Authority, for the
Developer to take or perform in order to obtain such certification.
(d) The construction of any Townhouse shall be dcemed to bc complete upon issuance of a certificatc
of occupancy for that 'rownhouse. The construction of the Minimum Improvements shall be dcemed to be complete
upon the issuance of certificates of occupancy for all 26 of the Townhouses constituting the Minimum
Improvements.
.
Section 4.5. Section 4.5.PlaLPlats. Prior to commencement of construction of the Minimum
Improvements. and as a condition precedent to the obligations of the City and the Authority hereunder, the
Developer will cause Big Lake Lumber and the City wi-l--I to enter into a dcveloper's agrcement (thc "Developer's
Agreement") pursuant to which t-lw--Oc~ Rig Lake Lumber will make certain representations in exchange for
thc City's approval of a plat consisting of the Development Property and the Adjacent Property, such agreement to
be in such form as the City and the Devclof*\f Big Lake Lumber mutually agree, but in any case containing sllch
terms as are Cllstomary for developer's agrcements entered into by the City. The Dcveloper shall cause Rig Lake
Lumber to timely perform its obligations under the Developer's Agreemcnt.
I)J( i-2\ 0 152\4
MNI9()-97
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ARTICLE VI
Iax~creme~!!iJaxes; Hou~ Covenant
Section 6. \, RighUo Co lIeclJ)e1it:!.9.ue!}L Taxes. The Developer acknowledges that the Authority is
providing substantial aid and assistance in furtherance of the development. The Developer understands that the tax
inerement intended to pay expenses of the Authority and the Developer are derived from real estate taxes on the
Developmcnt Property, which taxes must be promptly and timely paid. To that end, the Developer agrees for itself,
in addition to the obligation pursuant to statute to pay real estatc taxcs, that it is also obligated by reason of this
Agreement to payor cause to be paid before delinquency all real estate taxes assessed against the Development
Property, the Adjacent Property, and the Minimum Improvements, The Developer acknowledges that this obligation
creates a contractual right on hehal f of the Authority to sue the Devcloper to collect delinquent real estate taxes and
any penalty or interest thereon, or an amount equal to such amount if such obligation was that of another
person and to pay over the same as a tax payment to the county auditor. In any such suit, the Authority shall also be
entitled to recover its costs, expenses, and attorney fees.
Section 6,2. S2t:!alificati.2!l...of the TIF JJistriC!. (a) The Developcr warrants that at all times during the term
of this Agreement the TIF District shall constitute a "housing district" under the TIF Act. As of the date of this
Agreement, this will require that at least 95% of the Townhouses on the Development Property must be initially
purchased and occupied hy families whose family income at the time of such purchase is less than or equal to 100%
of "Median Income" (hereby defined as the greater of the median income for the State or the median income for the
Minneapolis-St. Paul Standard Metropolitan Statistical Area) for a family of two or less or less than or equal to
115% of Median Income for a fam ily of three or more.
(b) If, during the term of this Agreement, the TI F District does not or ceases to quali fy as a "housing
district" as dcscribed in this Section 6.2, such event shall be deemed an Event of Default under this Agreement and,
in addition to any remedies available to the Authority under Artiele IX hereof, the Developer shall, within ten (10)
days of written request hy the Authority indemnify, defend, and hold harmless the Authority, to the extent permitted
by law, for any penalties, damages and costs resulting therefrom.
(c) The Developer shall undertake such monitoring procedures with respect to the initial purchasers of
each and evcry Townhouse located on the Development Property and shall, within ten (10) days of the in itial sale of
each such Townhouse and at any other tirne as requested by the Authority, provide the Authority with tax returns of
the in itial purchasers and occupants of each such Townhouse, and all other documentation necessary for the
Authority to ensure the Developer's compliance with this section 6.2, such documentation to be provided within ten
(10) days of request by the Authority.
D.lCi-21 Ol52v4
MN190-'!7
14
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ARTICLE VII
Financil~
Section 7.1. ~eHg.a~ Fin.ancing. (a) Before commencement of construction of the Minimum
Improvements, the Developer shall submit to the Authority evidence of one or more commitments for mortga~
financing which, together with cOlnmilled equity for such construction, is sufficient for the acquisition of the
Developrnent Property and the Adjacent Property and constructing the Minimum Improvements.
(b) If the Authority finds that the HlBftgagg financing is sufficiently committed and adequate in
amount to provide for acquiring the Devclopment Property and the Adjacent Property and constructing thl:
Minimum Irnprovements then the Authority shall notiry the Developer in writing of its approval. Such approval
shall not be unreasonably withheld and either approval or rejection shall be given within thirty (30) days from the
datl: when the Authority is provided the evidence of mortgage financing. A failure by the Authority to respond to
such evidence of mortga~ financing shall be deemed to constitute an approval hereunder.
Section 7 .2. 8:uthori~" QQ~io.!lJo Cur~et:1u1ton Mort~e.. In the event the Developer does not cure a
default under any Mortgage authorized pursuant to this Agreement on or before 45 days following notice of such a
default, the Authority shall have the right, but not the obligation, to cure any such default on behalf or the Devdoper
within such cure periods as are available to the Dl:veloper under the Mortgage documents. The Developer shall
cause the Authority to receive copies of any notice of default received by the Developer from the holder of such
Mortgage.
\).IU-21 0 152v4
M N IWI-(n
IS
any interest in this Agreement or the Development Property or the Adjacent Property governed by this
Article VIII, shall be in a form reasonably satisf~1ctory to the Authority.
.
In the event the foregoing conditions arc satisfied then the Developer shall be released from its obligation under this
Agreement, as to the portion of the Development Property or the Adjacent Property that is transferred. assigned or
otherwise conveyed.
After issuance of the Certificate of Completion for the Minimum Improvements, the Developer may
transfer or assign any portion of the Development Property, the Adjacent Property, or the Developer's interest in this
Agreement without the prior written consent of the Authority, provided that the transferee or assignee is bound by
all the Developer's obligations hereunder. The Developer shall submit to the Authority written evidence of any such
transfer or assignment, including the transferee or assignee's express assumption of the Developer's obligations
under this Agreement. If the Developer fails to provide such evidence of transfer and assumption, the Developer
shall remain bound by all it obligations under this Agreement.
(c) Nothing in this Section 8.2 shall be construecl to in any way limit the conveyance of a Completed
Townhouse, provided that such conveyance is to a person other than the Developer or a person who is an "affi liate"
of the Developer as that term is defined by Minnesota Statutes, section 5l5R.I-1 03(2).
(d) Nothing in this Section 8.2 shall be construed to prevent the Developer and Big Lake
Lumber from entering into the agreement set forth at Exhibit E (the "Property Sale Agreement"), and the
Developer's delivery to the Authority of a fully executed copy of the Property Sale Agreement shall be a
condition precedent to the obligations of the City and the Authority under this Agreement.
.
Section 8.3. Release <u:ld Inqcnlnification Covenants. (a) The Developer releases from and covenants and
agrees that neither the Authority, the City, nor their governing body members, officers, agents, servants, or
employees shall be liable for and agrees to indemnify and hold harmless the Authority, the City, and their governing
body melnbers, officers, agents. servants, and employees against any loss or damage to property or any injury to or
death of any person occurring at or about or resulting from any defect in the Minimum Improvements.
(b) r:xcept for any willful misrepresentation or any willful or wanton misconduct of the following
named parties, the Developer agrees to protect and defend the Authority, the City, and their governing body
lnembers, officers, agents, servants, and employees now or forever, and further agrees to hold the aforesdid harmless
from allY claim, demand, suit, action or other proceeding whatsoever by any person or entity whatsoever arising or
purpol1edly arising from this Agreement, or the transactions contemplated hereby or the acquisition, construction,
installation, ownership, maintenance, and operation ofthe Minimum Improvements.
(e) The Authority, the City, and their governing body members, officers, agents, servants, and
employees shall not be liable for any damage or injury to the persons or property of the Developer or its officers,
agents, servants, or employees, or any other person who may be about the Development Property, the Adjacent
Property, or Minimum hnprovements, due to any act of negligence of any person.
(d) All covenants, stipulations, promises, agreements, and obligations of the Authority or the City
contained herein shall be deemed to be the covenants, stipulations, promises, agreements and obligations of the
Authority or the City, respectively, and not of any governing body member. officer, agent, servant, or employee of
the Authority or the City in the individual capacity thereof.
(e) Nothing in this Agreement shall be construed to constitute a waiver of any statutory or common
law immunity from or limitation on liability to which the Authority or the City are entitled under law, inclucling but
not limited to those set forth in Minnesota Statutes, Chapter 466.
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I)Hi-210152v4
MNI()O.'J7
17
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ARTICLE IX
Events of Default
Section 9_1. Event~_9fJ2ef;lulL!?efin~. The following shall be "Events of Default" under this Agreement
and the term "Event of Default" shall mean, whenever it is used in this Agreement (unless the contcxt otherwise
provides), any failure by any party to observe or perform any other covenant. condition. obligation, or agreement on
its part to be observed or performed under this Agreement or any other agreement between the Developer, and the
City. the Authority, or both the City and the Authority. Any failure hy Big Lake Lumber to observe or perform
any covenant, condition, ohligation, or agreement on its part to be ohserved or performed by Big Lake
Lumher pursuant to the Purchase Agreement shall also be deemed an Event of Default under this Agreement
by the Developer.
Section 9.2. &on1edies c1!l...DeraQ!!. Whenever any Event of Default referred to in Section 9.1 of this
Agreement occurs, the non-defaulting party may exercise its rights under this Section 9.2 after providing thirty days
written notice to the dcfaulting party of the Event of Default, but only if the Event of Default has not been cured
within said thirty days or, if the Event of Default is by its nature incurable within thirty days, the defaulting party
does not provide assurances reasonably satist:1ctory to the non-defaulting party that the Event of Default will be
cured and will be cured as soon as reasonably possible:
(a) Suspend its performance under the Agreement until it receives assurances that the defaulting party
will cure its default and continue its performance under the Agreement.
(b) Cancel and rescind or terminate the Agreement.
(e) Take whatever action, including legal, equitable, or administrative action, which may appear
necessary or desirable to collect any payments due under this Agreement, or to enforce performance and observance
of any obligation. agreement, or covenant under this Agreement.
In addition. upon an Event of Default by the Developer. the Authority may withhold issuance of the
Certificate of Completion for the Minimum Improvements and for any Townhouse that has not been conveyed to a
person other than the Developer or a person who is an "affiliate" of the Developer as that term is defined by
Minnesota Statutes. section 5158.1-103(2).
Section 9.3. ~o_RemeQy Exclusive. No remedy herein conferred upon or reserved to the City, the
Authority, or the Developer is intended to be exclusive of any other available remedy or remedies. but each and
every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or
now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power
accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any
such right and power may be exercised from time to time and as often as may be deemed expedient. In ordcr to
entitle the Authority to exercise any remedy reserved to it, it shall not be necessary to give notice. othcr than such
notice as may be rcquired in this Article IX.
D.I(i-2\ 0 152v-t
I\1NI')()_lJ7
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HRA Agenda - 5/01102
5.
Consideration to hear pro2:ress bv Steve .Johnson for potential redevelopment of
Block 52.
A. Reference and background:
At the March meeting, the I-IRA expressed interest in a project for Block 52 and
requested Johnson and Heaton work on pursuing potential partners and a consultant, and
come back to the liRA. At the April meeting, it was reported that Johnson was working
on numbers and with Jim McComb, marketing analysis consultant.
Since the April J-IRA meeting the following has taken place:
A, Talked with Kathy Froslie - Said she's willing to share appraisal of March 2001 -
$450,000, She said she added $95,000 for each ortwo businesses to come up
with her asking price of $675,000, Would like an liRA decision. Invited her to
HRA meeting in May.
B, Informed Springborg of HRA' s decision to work on a development project bcf()fe
any acquisition decisions. Invited to May HRA meeting.
c.
Jeff and I met with Steve Johnson and a potential tenant fl)f 8,500 sq ft. Potential
tenant's time frame is October 2003. Later, Jetl~ Steve, and I met again to talk
ahout process. Everyone agreed there needs to be a master plan Jl)f the entire
block with build out in phases, Johnson felt a feasibility study for the area was
necessary which would determine market. square footage needs, parking, and the
financial gap, In addition to Jim McComb study, it was suggested to use
Architect Kathy Anderson, KKK A Market Study for Block 52 is $20,000.
Johnson is willing to partner with the liRA on the cost of the study, the question
is "what's the splitT' An HRA contrihution for the study can be rolled into the
TIF project cost. Is this the only way to get a project started on Block 527 Is the
I IRA setting a precedent?
D. Johnson did receive a copy of the Preliminary Development Agreement, TIf
process sheet, and example of a proforma fix "but for" test.
E, Mark Ruff suggests the HRA establish a time line for Johnson to come back with
numbers in order for the HRA to meet it's August 2004 date.
F, If in the future the I IRA plans to convey the vacant lot to a Phase I project. it is
suggested the liRA obtain an appraisal and remember the HRA must hold a
puhlic hearing for the disposition of land.
HRA Agenda - 5/01/02
.
Steve Johnson will give an update on his progress and will perhaps request the HRA to
participate in the cost of a Feasibility/Market Study.
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HRA Agenda - S/If()2
6.
Consideration to authorize payment of April HRA bills.
Recommendation is to authorize payment of bills. Please note the increased cost to
establish a TIF District. The $5,000 deposit barely covers the cost of Ehlers and leaves
little for Kennedy & Graven. The lIRA is OK as long as projects proceed. It has been
suggested more than once to consider increasing the deposit amount to $7,500 or
$10,000.
MONTICEL...u TIMES, INC.
116 EAST RIVER STREET
PO BOX 420
MONTICELLO, MN 55362
PHONE (763)295-3131 FAX (763)295~3080
.
INVOICE
No.: 3/14/02-TIME118077-001
CITY OF MONTICELLO
ATTN: ACCOUNTS PAYABLE
505 WALNUT ST., SUITE 1
MONTICEllO, MN 55362
{;l;tt0 ,'II;P Il
1589 SWEET 3/14/02 - 3/14/02 4/2/02:
MONTICELLO TIMES
3/14/02 TIME118077-001 LEGAL, LEGAL . 1!tP/J
HEARING, MODIFICATION TO
REDEVELOPMENT PLAN FOR
CENTRAL MN RED. PROJECT #1
20.00
13.710
$274.20
?\';7 _ '-\l,S~~ - ~~v ,9 6S \0
.
~
?-~-E> ~
'-1,,-
Charges
$274.20
Total Transactions
$274.20
.
CREDIT TERMS: Balance is due on the last day of the month following
the invoice date. A monthly finance charge of 1.5% (18% annual rate)
is charged on all past due accounts.
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Monticello HRA
505 Walnut Avenue, Suite 1
Monticello, MN 55362
April 1 0, 2002
MC100-01
General
Professional Services
3/27/02 MTR
3/28/02 MTR
Total Due This Month:
Status of Account:
Current _,__~.9. Day~
$375.00 $0.00
60 Days
$0.00
90 Days
$0.00
Invoice # 19359
Hours Amount
120.7 Days
$0.00
2.00
1.00
250.00
125.00
3.00 $375.00
Total
$375.00
vKTO PAY? ~
Code: ') \ '7:J. '-t \0 S~ ~. c,\ C\ ~
Initial ~
.
EHLERS
& ASSOCIATES INC
PLEASE KEEP WHITE COpy FOR YOUR FILE AND REMIT PINK COpy WITH PA YMENT TO:
3060 Centre Pointe Drive
Roseville, MN 55113-1105
651.697.8500
.
.
Monticello HRA
505 Walnut Avenue, Suite 1
Monticello, MN 55362
April 1 0, 2002
MC100~31
TIF District 1-29
~ 1\ l)f\. "\- 'Q tf\- ~
Invoice # 19360
Professional Services
?- \ ~ . l..\ to S ':).. q , ~ \ q q
Hours Amount
3/25/02 MTR For The Establishment of T1F District No. 1-29
Total Due This Month:
Status of Account:
0.00 $4,500.00
120+, Days __
$0.00
~l,ment _._m~O Days.___ 60 D~~__90 Days
$4,500.00 $0.00 $0.00. $000
4,500.00
Total
-$4,500.00
.
PLEASE KEEP WHITE COpy FOR YOUR FILE AND REMIT PINK COpy WITH PA YMENT TO:
.
EHLERS
& ASSOCIATES INC
3060 Centre Pointe Drive
Roseville, MN 5511Y1105
651.6978500
.
Kennedy & Graven, Chartered
200 South Sixth Street
Suite 470
Minneapolis, MN 55402
(612) 337-9300
April 23, 2002
Statement No. 51514
City of Monticello
Accounts Payable
505 Walnut Street, Suite 1
Monticello, MN 55362
Through March 31. 2002
MN190~00001 General
MN190-00089 Acquisition of 218 Front Street/O'Connor
MN190-00097 TIF 1-29
.
Total Current Billing:
I declare, under penalty of law, that this
account, claim or demand is just and correct
and~at~'th~
Signature of Clalmt?
.
,\ I
9.00
36.02
115.50
160.52
.
City of Monticello
Accounts Payable
505 Walnut Street, Suite 1
Monticello, MN 55362
MN190-00001 General
For All Disbursements As Follows:
2/27/02
.
.
Kennedy & Graven, Chartered
200 South Sixth Street
Suite 470
Minneapolis, MN 55402
(612) 337-9300
41.1225694
April 23, 2002
Invoice # 51514
Parking expense
Total Disbursements:
Total Services and Disbursements: $
$
9.00
9.00
9.00
.
Page: 2
Kennedy & Graven, Chartered
200 South Sixth Street
Suite 470
Minneapolis, MN 55402
City of Monticello
Ylo S~'? ?O~/'O
'?-- \ '?l ~
March 31, 2002
MN190-00089
Acquisition of 218 Front Street/O'Connor
Through March 31, 2002
For All Legal Services As Follows:
3/4/02 RJL Phone call with district court
Hours
0.10
0.10
$
3/4102
RJL Phone call with district court administrator
Total Services:
For All Disbursements As Follows:
.
Photocopies
Postage
Total Disbursements:
Amount
17.00
17.00
34.00
$
1.00
1.02
2.02
Total Services and Disbursements: $ 36.02
.
.
Page: 3
Kennedy & Graven, Chartered
200 South Sixth Street
Suite 470
Minneapolis, MN 55402
City of Monticello
March 31, 2002
~ L '3 - I.{tJ,'S :;lCf . '30)10
M N 190-00097
TIF 1-29
Through March 31, 2002
For All Legal Services As Follows:
3/6/02 DJG Telephone conference with O. Koropchak regarding title
issues on vacated streets
Hours
0.50
Amount
75.00
3/21/02
JKP Made changes to CPD regarding closing date; email
revised copy to City
0.30
40.50
Total Services:
$
115.50
.
Total Services and Disbursements: $
115.50
.
.
.
.
HRA Agenda - 5/01/02
7.
Consideration of Executive Director's Report.
a) Riverwalk Project - The City Council approved entering into the Contract for Private
Development among Hans Hagen Homes, the City, and the liRA on April 22,2002. The
engineers continue to work out the details on the relocation of front Street. The final
plat should be at the Planning Commission in June. WSl1 will work on behalf of the
lIRA to complete the finished pad site in order to close on the property by at least June
21,2002. l-lagen Homes has the abstracts for preparation of the closing. The Parks
Commission has been informed of their role to seed or sod the Carlson property in
September. Attached is a letter to the DNR from Jeff O'Neill noting the hearing
scheduled for May 13 at the City Council meeting. Planner Grittman doesn't foresee a
problem. Administrator Wolfsteller and myself made a decision given the concerns of
the DNR not to have the Fire Department use the property as a test burn. A local citizen
with experience in home restoration is interested in purchase if the house remains in tack
and a lot is available.
b) Landmark Square - You probably noticed contamination cleanup is under way this
week. l1arry is out of town until April 29. In talking with Lotus Realty, Barry has
applied for the sign-otTfrom the MPCA. Bjorklund and Fluth's target date for closing is
next week (April 29). Building and site plans were submitted to the City for a couple of
weeks. Review in progress. The Contract states the building was to be demolished by
May L 2002. Prior to issue of building permits, a copy of the executed parking
casements and agreement should be submitted to the HRA.
c) 1. J. Martin _ Received $2,500 TIF deficiency payment for TIF District No. 1-21.
d) Marketing Committee - Continental Breakfast and Golf Outing - May 16, 10:30 a.m.
Get your reservations in. Mailed about 65 invitations. 9-yes and 3-no and 5 breakfast
only.
e) Industrial Banquet - The Chamber is holding the banquet early this year. Tuesday,
June 11 at the Monte Club. Norm Coleman will be the speaker again this year.
1) Scattered lIousing project - Mark Ruff has been given the go ahead to establish TIF
District No. 1-30. Sherri Harris is working with the last of five property owners. Project
includes 11 units at a selling price of between $100,000 to $115,000. Remember the
lIRA and the Council previously approved the preliminary concept for use of Tlf. The
HRA determined TIF assistance in the amount of$125,000 up-front monies and waived
the deposit. Attached are the new estimated TIF cashflows given the 2002 market values
and tax rate, with and without int1ation, and estimated project costs, with and without
TIF.
g) UMC _ Attached is the existing job and wage levels and the projected new job and
wage levels for UMC. A proposal was submitted April 15 which included maximizing
TIF pay-as-you-go assistance for land write-down. The company manufactures medical
and aviation parts. Project consists of 60,000 sq ft building and 10 acres land. Contractor
Olson General Contractors. No comlnitment.
h) Production Stamping - Attached is the existing job and wage levels and the projected
new job and wage level for Production Stamping. A proposal was submitted April 15
which included maximizing TIF pay-as-you-go assistance for land write-down. Project
HRA Agenda - 5/01/02
.
consists of 60,000 sq 11 building and 7 acres land. Contractor The Kinghorn Group. No
commitrnent.
i) Kaltec ofMN - Joined DTED representatives at their invitation to discuss State
monies. Conclusion: See attached letter. Company made an offer on H- Window
building. Not accepted. Renting 3,000 sq ft from Fay-Mar, 6 month lease. New product
and patent on Foster. a f()rkl ift attachment for lift. and haul. Need space and workers to
produce.
j) Universal Core - 14,000 to 18,000 sq ft building. Decided to lease space in Buff~llo for
couple years to see if asking land prices and market equalize. Contractor TriCon.
k) liRA Bylaws were amended to read meeting time of 6:00 p.m. Tentatively, no July 3
HRA meeting.
I) Public Hearing on Comprehensive Plan - May 7, 7:00 p.m. Planning Commission.
m) BRE visit scheduled for April 26 at Polycast Specialties.
n) I DC May 16 meeting at Remmele Engineering.
.
.
, '."j
,.8.:'"''
~ .,'
,j\~/
-"'~'1':'
....v.. ,
i':8'~::'".:,:~.
-ii' :~' :,~,:I~ ,~
1--1
MONTICELLO
:\pri I 10, :2(lO:2
Patricia L. Fowler
Minnesota Department of Natural Resuurces
940 Industrial Dr. S.. # 103
Sauk Rapids, MN 56379-1235
Dear Ms. Fowler:
This is \() let you kmw,' that there will bc a hC~lring conducted by thc Monticello City Council on
a proposed 10 unit residential planned unil dcvelopmcnl ~1t 7:00 p.m. on May J 3,2002 at the
Monticcllo Community Center. This development. known as "Rivcrwalk", is located within the
shoreline management area or the City or Monticcllu.
.
Please also nole that the Planning Commission will be rcvinving the site at the regular meeting
on Tuesday. May 7. 2002 at 7:00 p.m. at thc Monlicl~llo Comlllunily Centn. Please consider
providing comments for both the Planning Commission and tl1L' City Council.
Steve Cirittman will soon be sending you additional information regarding compliance with
planned unit development density requircments. It is my hopc thai you will get this information
in time \() provide comments to stafr prior to the May 7'11 meeting of the Planning Commission.
If you should have any questions. please call.
Sincerely.
}
~&~
J efT (Y N c ill
Deputy City Administrator
.I0/lk
cc:
Steve Cirittman
Ollie Koropchak
Hans lIagen
.
'0-, .
MOllticello City HaiL 505 Walnut Str<:et, Suik I. Montin,llo_ MN ')'):\1l2-Xn I . (7(,:,) 2'j')-27il . !'i,x: (7():\) 2lJ5-4404
Office of Public Works. 90lJ Golf Cmll.'co Rd., MOllticello- MN ')')V,:? . (7(,:\) 2'1')-:\ 170' bx' (76:\) 271-:\272
~~~~ ,.....-----~"~_"_~__ _ _......--- ",__~.'W'__
.
LAKE TOOL
Vendor:
Monticello Housing & Redevelop
Delinquent
Item to be Paid - Description
Attn: Ollie Koropchak
.
PAY
TO THE
ORDER
OF
.
1347 Ound" Circle . Monticello, MN 55362
I all~__
~::.., '>":';""<'''::> ,,:/.}, .:/:....
Fhone; 763-295-6655 . Fax: 763-295-6555
Two Thousand Five Hundred and 0/100 Dollars
Monticello Housing & Redevelop
505 Walnut Street
Suite One
Monticello, MN 55362
1I100gl.,bSIII I:Og I.gO~al.,l.,l:
9465
Check Date:
Apr 13, 2002
Check Amount: $2,500.00
Discount Taken Amount Paid
2,500.00
9465
FIRST NATIONAL BANK OF ELK RIVER
MONTICELLO OFFICE
75.384-919
,-:;
"
o
DATE
AMOUNT
CD
Apr 13, 2002
~i
~
********$2,500.00*
,";
"
~15- .-
/,,"~ ' .0 /"
/~~I~
Oll~lllO g 1.,111
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\
0<I/23/2OQ:I
.
.
.
8:48AM
NO. 9067
APR. 23. 200 2
EHLERS & ASSOCIATES
INI" 11"I ....:i..... In~
CITY of MONTICELLO. MINNl!.SOT A
T.U'. C"SHFLOW "SS\!~rTIONS
7.000'1Io
1.4!B59 PeyO:1.
O.~
~&r...L Rale
T&:I Extotlllon ~-
lnfl8tion RlII8:
.,l\IliOn QI> tallllllP i. noI _lllrod llJ TIF
BASE VALUE INFORMATION
p.rcenLaQe TOI8I P~ pll)':ZOO1 T...
_ fJ!L ._ _. _ tlIPQralI~-.!<<'~14!...- ~ .- - ~~y .-
~~_ ._. _'00.00% _ -1!.~- ~ooo_. _ - ---.J90 ~.-
1~10.(l09l)4Q _. _. .__ 1~ _. ~:lQO- .~:1.Clj)_ .- ..- ._~~III.-
J..~~~-' ._ _ 1CQ,~._, ~.~ --..i3.llQ9-- - -- __Eo gll''''".IO_
j~1~ ___ '_' ~2!l,0!l~ ._::1.!tW _ :1.0.229.. ._ .- '- ?SJ75d'!l!l!...
.l~.5-91a-oosoe---L ._. _ . 1oo.coL _SQ.~ _!O.d29. .--. --. ..- ..~-~~.
.To~ _ _. _ _ __ _:1.1tW ._2'.~ ,_ -. -. :1.,ill.UPJl!!.it'n.~","
TyPe or TIlIlncf8m.nl DI.1ficI:
Type of D..algpn'l81'11:
NIlIIlW gf UoIllI
PROJ~crVALVE lNF()RM,,,nON
H......ne
Owner occupltd ~11!l
11
1,100.000
Pay 0<1
Eali/llBllld M.aI1<tl ValU8 III 11IM PfClJect
CIlIA Flal. on 11I'I' 570,000 qf MarMllI&r.la
C\IlIa ~ M\lIk8I va"'. :> $711.000
EstmatOCl T... CapKl~.
E.llmel<>d T....:
jI,S,,,__' Mer1<M 1I111,1011unll
T,,""'d
1.00%
1.00"10
11,000
16,0'4
5100.000.00
11,lISa,59
PIYCl<l
T"".. 40 "'" in<:1ud.. markel..h......85 ,"",iell are nOL capllJr8ll by T1F
AStun'lOS 5 1'10",",,5 co",pllltd GCl\IlN;tion m 2002111<I NIIIam..... In 2003
P. 2/5
~~)
P'IIO 1 .1t\IUII~1l- TIF30.~
--APR. 23. 2002 N9AM EHLERS & ASSOCIATES
Q41UtlOO2 NO. 9067 P. 3/5
. ClTvOF NlON1"ICELLo, MINNESOTA
T,u INCREMENT CASH ~LOW .':t. \ ~- ~:;'il
\- - - -,..;_. --- c~ 'i8ii1~1 Adll\ii\' -HR.A. -sem~u81
PliRIOD BEGINNING T_ T"" TOlC Gr08ll T_ III 01 Na\ Till
Y.!!...~" p,,- ~Ui!'!ly._ CllP.Kil'r: _.~Il)__Wf~L ~Q.25% _O.O.lL- ...!!E"'"'!)!!l~ --. O.CO'~. 1.ll\G!S!"e~L-,(r8-,-~Ih,__y'r..
I 00 08-01 200:2 2.'23 2.12) 0 0 0 0 o 0.0 O.SO ~.ol 2003
0.50 0'.2-0'1 2003 2.\23 2.123 0 0 0 0 01 0.0 1.00 08-01 2003
1.00 ge.o1 2003 0 0 0 01 0.0 1,150 02-01 2004
1.50 0'.2.01 2QO<l 2.122 5,500 :..~77 2.0163 (2$2) 0 2,210 0 05 2.00 08~1 2004
2.00 QIkll 2QO& 2.oIQ (252) 0 2.210 0 1,0 250 02.()1 200S
2.00 02.()i zOOll 2,122 1\,000 8,an 6,~74 (6601) 0 5,810 0 1.5 :i00 08-0' zOOS
3.00 06-01 2005 U74 (eM) 0 6,810 0 2. 0 3.60 02~' 200iii
3.50 02.01 :1.006 2.123 11.000 un 0.474 (664) 0 5.810 0 2.5 4.00 0&()1 2006
I ".00 Q6.()1 2C06 6,474 I"') 0 5,810 0 3.0 4,50 02-01 2007
i 4.50 02~1 2007 2,123 11.000 '.8n 0..74 ("") 0 6,al0 0 3.5 G.OO oe-O' 2007
I 5.CO 08-01 'lQlJ7 6,4" (~) 0 5.810 01 4.0 5,50 02-01 2001
550 02~1 2008 2.123 "',000 8,877 6.474 (66<l) 0 5.810 ~I 4.5 8,00 Q8-01 ZOOS
18.~ 08.01 2006 6.~7. (664) 0 5,810 SO 6.50 0,2.01 2009
16.50 11:1..01 200i 2.123 ,".000 8,f!iT7 8,414 (664) 0 5.810 01 5,5 7.00 08-01 200ll
\ ~:~ 06.01 2009 6."74 (66<l) 0 S.B10 01 6.0 1.50 02.01 2010
02-01 :1.010 2,123 11,000 11,811 8,47. (ll641 0 5.1110 ~I 8.5 8.00 Q6~' 2010
6.00 0&-01 2010 8..74 (5&4) 0 s,al0 70 ll.!O 02-01 201\
i 8.50 02.01 2011 2,122 11,000 9.977 6,474 (6&4) 0 5,810 01 7,5 {I.CO 08-01 2011
tOO oe.o1 2011 8..7. lEi64) 0 5,110 ~I 9.0 aSO 02.01 2012
Ill.so 02.0' 2012 2.123 11,000 arm 8,474 (tle6) 0 5.al0 B 5 10.00 08-01 2012
11000 0&-01 2012 0.414 (664) 0 5,8\0 01 9.0 10 50 02-01 2013
10.50 02.01 2013 2,123 '1,000 8.817 8,~14 (ll6'I) 0 5.810 ~I 9.5 11.00 oa.ol 201:;
11,.00 08,a, 2013 1,.74 1G$4) 0 5.810 100 \1.50 0'.1.01 20'.
1150 02.01 2014 2.123 '1.000 1.877 6,474 (6&') 0 5.8\0 01 la,S 1200 08-01 201"
12.00 0&.01 201" U7.. ('*') 0 5,810 ~I '1.0 1250 02-01 2015
12.50 02-01 2015 2.12.3 11.000 8.877 6.474 (864) 0 5,810 II 5 1~.00 06-01 2015
13.00 06-01 2015 6,47" (614) 0 5.910 01 '2.0 1 ;1,50 02-01 2016
12.50 02-0' 2016 2.123 11.000 8.877 6.~74 (864) 0 5.810 ~I 12..5 14.00 oa..ol 20i6
14.00 0&-01 201B 1,47.. (i&4) 0 5,Bl0 130 14.50 02001 20'7
114 so 0:1..01 2017 2.123 11.000 6,877 e,474 (684) 0 5."10 01 13,5 1500 oe-ol 2017
'5.00 0&001 2017 8,414 (164) 5,"10 01 1..0 15.50 02-01 201B
. 115.50 02.01 2018 2,123 11,000 8.871 6.~74 (604) 0 5,810 O. 145 16.00 08-01 201S
11800 06-01 2.018 &..7.. (6604) 0 5.810 01 15.0 16 so 02-01 2019
16.50 02001 2019 2,12S 11.000 B,877 6.474 (6&4) 0 S,Bl0 0 1S,S 17.00 06-01 2011l
117 00 06-0' 201D 6,.74 (&64) 0 6.810 01 180 17,50 02.01 2020
17.50 02-01 2020 2.12.3 11.000 8.877 6,474 (664) 0 5.810 01 16.5 lB.oo oe-ol 2020
116.00 00-01 2020 6.474 (1564) 0 5,810 0 17 0 18,50 02.01 2021
11B.so 02-01 2021 2.123 11.000 8.877 6.474 (664) 0 5.810 01 17,5 1900 08-01 2021
19.00 08-0' 2021 6.474 (65") 0 5.8'0 0' '8,0 18.50 02.01 2022
1111.50 02<:)1 2022 2.123 11.000 8,B77 1>.474 (664) 0 5.810 01 le,5 20.00 08..01 2022
12000 oe-ol 2022 &,474 (6&4) 0 5,910 01 180 20.50 02.0' 2023
20.50 Q2-o1 2023 2,123 1',000 ll,i77 5.47'1 (164) 0 5.8'0 ~I 19.5 21.00 08-0' 2023
121.00 06'()1 2OZ'l 6.'174 (664) 0 Ml0 10,0 21 so 02-01 2024
21,50 02.{)1 2024 2.123 11.000 8.877 6.474 (eGol) 0 5.8'0 ~I 2.0 5 22.00 08-01 20:1.4
122.00 06~1 2024 8,474 (61") 0 5,810 21 0 22,50 02-01 2025
1:1.2,50 02-01 2025 2.,123 11,000 8,e17 6,474 (664) 0 5.810 01 2Ui 23 00 OS-Ol 2025
13.00 OS..o1 2025 B.47-4 (864) 0 S,810 0 22.0 23.50 0:1...01 2028
123,50 02-01 2026 2,123 11,000 8,877 6,414 (664) 0 5.B'0 ~I 22,5 24 00 oe-ol 2026
,2....00 08-01 2026 6.414 (6&4) 0 5.810 I 23.0 2...50 02-01 2027
124.50 02.01 2027 2,123 11,000 U77 6,474 (864) 0 5.1110 1 01 23.5 25 00 06-01 2027
12500 0&-01 2027 6,47" (664) 0 5.810 I ~I 24.0 25.50 02-4)1 2028
25.50 02-4)1 2028 2,123 1',000 B,877 5.474 (6&4) 0 5,810 i 24.5 2B.00 08.01 207.8
126.00 08-01 20:1.B 6,474 (864) 0 5.610 01 Z$.O 26,50 02-4)1 2029 I
2650 02~1 2029 2.123 ,".000 8.877 6.474 (e64) 0 5,1110 I 0 255 27.00 oa.ol 202\1
127.00 08-01 2029 _.. 5,474__ ....J~41__ . ..._0 '_ _ 5.81Q_ ...01 ,,'2Ij!.O 27~ 02-;Q,I.. 2.03g,.J
1.=. -- . - .L.
._ . ...... _. Te ._. ._ ._._ .~8,6~_.. _t3!~)__. "-~ _~94,9."_... \- -1
,. ..._._ n..._ ._ .__. "rl!f,'.~~lIa""s_ __ __ _1P..07~__~ ('}j,3") ._- .....9.... -L!",S38__.. .._.. 1-
""'1.0Ii0...... ..11m,".' b..... upon'ipecIed .11,."-,, inOl1lm.n~"..,.... ..i.... 1M IIIH. .~. .\10 ...,.eII.... subjeel III lIla'lll'. .--.. .-
.
f\ t"
~oae Z ."'.....'na- TIFloO..xl.S
E/II.,. .... .....0<101.. I~
APR. 23. 2002
oo/23/aOll2
.
.
.
elIlln lIIIlI...-i.'''. Inl
8:49AM
EHLERS & ASSOCIATES
CITY Of MONTICELLO, MlNNEsar A
T.I,F. CASH fLOW ASSUMPTIONS
NO. 9067
7,000'1I>
, ~5asa I'll)' 02
2.0000".4
Inter_I Rala
T8Il e.l8Nion Rale:
ln4'lali<lr\ Rite:
",nilion on lat rlll.M IS I'lOl capuncl by TII'.
Bi\SE vALUE INFORMATION
PercenllOg. TC)~ 1'.,.",,1 PlY 2001 Tal.
__.I'IL.. _. ._ ~ar!l!L. M@d!!Lv.lljU~. Y!!!!!.....- -. ~~!L-_
165.(l1,Q-009030_. __ __~oo.OO"Io ._ 3~ _.3S.QQQ.... ._. ._ ._390~.._
1~,o.ooso40. _ ___ ~%_. .~~DL-.~ _'- - ~~~!"}L
_~S5-Q\~ . _ 1~ _ 63,2. ._83,000_ _ ___ ~ E!1~ .-
.l~~_L __ 1QO-,-~. _ ~ _ ~790__ - - .-W..ll- --
,SS.()'Q-OO!lD6...L... .__,~ _.50400 ._I!!!,400_. ___'_ S04 ll....!.\!._
Iol$l__.._ __ _. _212...W_ .. _~,300_ ._.. ._. ~.u~"""I(.lon
T'1l8 or Tex lrI=",menl Oi~1/lc:l;
TWIll 01 O....IopIn.nc
Mum~.r of l,lnils
PROJECT VALUt INFOIlMATION
Haul""
OWI'lIr Oelf.lpled IoIlloJsirlg
l'
1.100.000
E,",mlllocl MIll_ Value 01_ proja.a\
CllI.. Flal1l on 111$\ 578,000 01 Mal1<lIl VakI.
CI.. ftal<I Mar1* ValUIl ~ 578,000
ealimallD TM CapacilY.
IiiSllrlll\.ad Till.:
.......aaor. M~ Vlll.,.l!Jnll
T.."""nil
1,00%
1.0D'll0
11,000
1&,044
,,00.000 00
51.4M.Sll
T_ do nOllnClude "'&/I<O'''......el8>e.. ",lIlell MIl nol CllPluNd byTIF
AHllII'l"" 511al.l581 compl8led corl&\l'Uclion In 20ClZ .nd "'1l\~d8r in 2003
Pay D4
PrJ Q<I
p, 4/5
PIS" 1 ,Il\ClUSI/lll. T1~JO,XLS
A P R, 23. 2002
lloI2312ClO2
.
.
\ - - ._- -'ii..-
pERIOD SEG111lNIIIlG Tax
.YrI, ..Mm'. ..~. ~L
0.0 08-0' 2002 2..123
O.SO 02.~1 2003 2,123
1.00 08~1 2oa:i
1.50 02.(l1 2OlloC
~,OO ~1 2004
\ 2.50 OM1 ;0000
3.00 Q8.(l1 200S
3,50 ~.o1 2006
'" QO 08.01 2000
\ 4.50 02~1 2007
~,OO 06-01 2007
\ 5.50 02-<>'1 2008
8.00 08~1 2008
15 50 02-01 2009
\ 7.00 08<11 2009
7.50 02001 2010
8.00 0&.01 2010
I 8 50 02-01 2011
900 08-01 2011
I 'i.50 02-'11 2012.
I 10.00 0e..01 2012
1'0 SO 02~1 201)
11.00 Q8.tll 2013
\ 11,150 02.01 2014
12.00 Q8.01 2014
I 12 SO 02-01 2015
I 13,00 0&001 20"
13.50 02.01 2016
14.00 06-01 2016
14 SO 02.01 2017
15.00 06001 2017
15.50 02.01 2018
16.00 O&Ql 201S
16,50 02-<11 2019
11 00 08.01 2019
17.50 02-<11 2020
18,00 08-01 2020
1,850 02-<11 2021
19,00 oe-ol 2021
1 ,..50 02-0' 20'22
120 00 OB~1 2022
20 50 02.01 2023
121,00 1,leo01 20~
i 21.50 02.-Cl 2024
1 22 00 oa.ol 2024
22. 50 02~1 2025
1 23.00 0&-01 2025
123.50 02.01 202i
24 00 08.(l1 20215
1 24.50 02.01 2027
125.00 0&-01 2027
125.50 02.()1 2028
1 26,00 OB.()I 2028
, 26 SO 02.'()1 2029
I, .27.00 08.()' .~Of.B
.
ih\111 ard J'I.Ot:iA401:li, tr\e.
8 :~49AM
2,123
2,123
2,123
2,123
2,123
2,123
2,123
2,123
2.123
2,123
2.123
2,123
2,123
2,123
2.123
2,12.3
2..123
2.123
2,123
2,1;2:;
2,123
2,123
2.123
2,123
2,123
EHLERS & ASSOCIATES
NO, 9067
p, 5/5
$.500
\1,000
",220
11,"'4
1 1,673
11,907
1~,145
12..388
12,636
12,888
13,146
13,409
13,877
':',llSl
14.230
14,514
14.805
15,101
15,403
15,711
16,025
2,123
CITY Of MONTICEJ..Lo, MINNESOT {I.
3,377
-s.;-,"""",,oI - -. \ . L.o<l:al -\ ne;;-- -- -. ~
NOl Tu C.....ul. NP\f Mglcl'leL Of PERIOD I!NDIIIlG
..JJCAI~} ---1.00-'i..- ...Q.9!'%_lneremolll----!!S. --~. _...1!, -
o I 01 0.0 0,60 ~.o1 2003
o I 0 I 0.0 1,00 0ll-01 2lXX! \
o \ 0 I 0.0 1 .50 ~.o1 2004
2,210 1.lI26 0 I 0.5 2,00 QIoOl 20041 \
2.210 3,787 0 1.0 2 50 0'2..01 2005
5.810 1!I.$14 \ 01 1,5 3,00 OBM 2005
5,810 13,061 0\ 2.0 3.50 02.()1 200S
S,95It 17,&031 0 2.5 400 06-01 2008 I
5,~ 21,972 0 I 3.0 4,50 02.01 2007 I
6,101 28,2117\ 01 3,$ 5.00 0841 2007
e, 1 0' ~,476 0 I 4.0 S.SO 02-01 200ll
6.251 3'1,1113 0 I 4.5 8_00 ()&.()1 2008
6,;251 38.810 I 0 5.0 6.50 Q2..Q1 2009
15,404 42,5&81 O[ 65 7.00 Oe.ol 200B
6,404 <lEi.3811 \ 0 \ &.0 7,50 02..01 20'0
8,5/lO 50,171 0 &.5 a.OO <*01 aD10
6,560 53,827 0 7,0 8511 02..01 2011
6,719 57.....1 0 i 7,5 9.00 08-01 201 I
8.719 8O,B:s8 \ 0 I 8,0 9.50 02.~1 :1.012
&.e9' 64,397 0 8.5 ,0 00 oe~1 2012
5.811 67.ne I 01 9.0 10.50 02..01 20'S
7 .~6 71 ,041~ \ 0 I 9.$ ".00 OIMl 2013
7,0iJI5 74.238 0 I 10.0 11.$0 02.01 2014
7.215 71,3971 0 I 10.5 1200 08-01 20'4
7.215 eO,45O 01 11.0 12,50 02.0' 2015
7,:187 13,471 I 0 11,5 1$.00 0&.01 2015
7.387 1!18,389 1 01 120 13.50 02.01 2018
7,583 89,2751 0 I 12,5 14,00 ()I.o01 201S
7.563 '2.064. 0 13.0 1..50 02..01 2017
7,H2 94,8221 0 I 13.5 15.00 06.01 2011
7,7~2 97.4871 0 I 140 '5.50 02.0' 2018
7,9Z~ 100,,22'1 0 14.$ 1800 0&-01 2016
7.'iJ24 102,669 01 15.0 18 SO 02-<11 20151
8,111 105,1871 01 15.5 17.00 06.01 :/.019
8.'" 107.6201 01 '6,0 17.50 02-01 2020
8,S01 110,0251 0 16,5 18,00 oe.o' 2020
9,301 112,350 01 17.0 IISO 02.01 2021
9.4i" 114,6~a I 0 I 17.5 19,00 09.01 2021
8.4~ 118,889\ 01 180 19.50 02.(11 ~2
8,892 1 19,06~ I 0 18.5 2000 08-01 2022
M92 121,195 01 '9,0 2050 02.01 2023
e,eS4 123,2821 01 19,5 21.00 1)8.001 2023
8.994 125 3Oll1 0 I 20,0 21.sa 02.01 202'"
9,0~ 127,:11' 0 zO.5 22.00 0ll~1 2024
9,099 129,249 I 01 21.0 22,50 Q2.o1 2025
1l,3011 131,1591 01 21,S 23.00 ~1 202S
0.309 133,0071 0 I 22.0 23.50 0:1...01 202.5
9,523 134,634 0 22.5 2'100 Oa-al 2026
9.52<1 138.51191 0 I 23,0 24.50 OMl 2021
9,7'11 1U.343 I 01 23,5 25.00 0&-01 2021
i,7<41 140,028 0 I 24,0 25 60 02~1 2029
9,9154 141,6931 0 2~.5 2600 0&.01 2025
9,9lO4- 14:l,~0" 1 0 I 25,0 25.SO 02..01 2021l
10.191 ,,,,,.9931 01 255 2.7.00 08.01 20:1.9 1
.19,191 ).~6.4291 u_. .91 _ :l.6.Q .1~ 50__22.01_2_030. ~
~:~~~_ m T' .__9'1 -I
... .-'- . .... _....- -.....
8,a77
9,097
9,:121
uso
1l,7iJ4
10,022
10,21;6
10,512
10,765
11,023
" .281
11,554
11,829
1~,107
12.391
12,682
12,1178
1~2eo
13.SB8
13,902
16.245
1'1,~22
'6,s7Z
14,549
17,008
'4,813
17,3'18
15,:1.23
17,693
15.570
f\ c:; ')
PotO Z "",ulln;. T1F;Jll.ll.LS
Apr 23 02 07:29a
Central HN Housing Ptnsp
320 259-9590
.
Revised Monticello Project Numbers 4/5/02
Without Tax Increment
Acq uisition/Oemolition
5 Properties
Environmental Assessment at $95 ea.
Legal at $500 ea.
Title Insurance
Filing Fees
Demolition
Platting & abstracts
Site Preparation
Permits & Fees
Real Estate Taxes
Financing
Insurance
Developer Fee
Subtotal
Total Cost
324,000
190
2,500
1,750
750
20,000
6,000
67,500 (city engineer is revisiting this number)
42,750
2,750
9,000
2,500
25.000
504,690
New construction 11 homes
Subtotal
935,000
935,000
Total Cost Acquisition/new construction
1,439,690
Permits & Fees
Land Donation - city
Employer
$42.750
$20,000
$20,000
$82.750
$123.358
.
Home Sales (11 homes)
Home Price
Closing Costs
Packaging Fee
Total Price
$123,358
3,000
2,500
128,858
Sources
CMHP
City
Contractor
300,000
42,750
935,000
$1.277,750
$161,940
Gap
.
p.2
f'\<;1
Apr 23 02 07:29a
Central MN Housin~ Ptnsp
320 259-9590
p.3
Revised Monticello Project Numbers 4/5/02
.
Acauisition/Demolition
5 Properties
Environmental Assessment at $95 ea.
Legal at $500 ea.
Title Insurance
Filing Fees
Demolition
Platting & abstracts
Site Preparation
Permits & Fees
Real Estate Taxes
Financing
Insurance
Developer Fee
Subtotal
Total Cost
324.000
190
2,500
1.750
750
20,000
6.000
67.500 (city engineer is revisiting this number)
42.750
2,750
9.000
2,500
25.000
504,690
New Construction 11 homes
Subtotal
935.000
935.000
Total Cost Acquisition/new construction
1,439.690
Sources
Tax Increment FinanCing
Permits & Fees
Land Donation - city
Employer
Home Sales (11 homes)
125,000
$42.750
$20,000
$20,000
$207.750
$111.995
.
Construction Financing Needed
- lot reimbursement to city
$296,940
20,000
276,940
25,000
251.940
defer developer fee
.
f\C\
IAPr
.
23 02 07:28a
Central HN Housing Ptnsp
320 259-9590
p. 1
610 W. Sl Germain, 51. Cloud 32o-25~03S3 Fax 32o-25~9590
Central Minnesota
Housing Partnership
Fax
To: (-X~-
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F-5i~
Fax:
Pages:
Phonee
Dat_ <./- c;?l3-. O~.
R_
cc:
.
Urgent
For Review
o Please Comment Please Reply
o Please Recycle
. Convnents:
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Apr 23 02 07:29a Central HN Housing Ptnsp 320 259-9590 p.4
.
.
.
ATTENTION:
Greater Minnesota Housing Fund
2002 Income Limits
(80% of Statewide Median)
ADJUSTED FOR FAMILY SIZE
Family Size
GMHr= Income
. . . .
Limits
i 1 $36,100
2 $41 ,300
3 $46,450
4 $51 ,600
5 $55,750
6. $59,850
7 $64,000
8 $68, 1 Qg.__.._~____.
These income limits are guidelines you must follow when the
Greater Minnesota Housing Fund provides financing to your
housing project. If you do not follow these guidelines you put
funding for your development at risk, as well as potential for future
funding. Projects with other additional funding sources must also
comply with the income limits set by those programs.
If you have questions about these guidelines, please call the Greater
Minnesota Housing Fund at 1-800-277-2258 or 651-221-1997.
~~J
~
) :02 12: 18PM CITY OF MONTICELLO
P.2/3
-----,
b tv\, <:.. .
L
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-
-
..
~
GOALS OF BUSINESS RECEIVING ASSISTANCE
EXISTING JOBS
.........
-
-
...--,
Please indicate J1Umber of current employ~es ar each level and indicate the cDw:sponding benefit
leveL Thcsejohs you expect to retain with relocation.
-"
-
...
Job Creation
~
.....
~
Full~time
Part-time
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~ '02 12: 18PM CITY OF MONTICELLO
P.3/3
II
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GOALS OF BUSINESS RECEIVING ASSISTANCE
NE'W JOBS
Please indicate numbc( of additional cJ1i.ployees at each lcvel and indicate the c()!Tesponding
bencfn level. Number of neW jobs created over the first two years ~)r relocation.
II
II
Joh Creation
II
Full-time
II
II
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II
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Hourly Waa,e
Level
Hourly Yalue
of Voluntary
Bell eti tg 121
Part-time
(ExcL benefits)
Less than $7.00
$7.00 to $7.99
$8.00'[Q $9-99
$J 0.00 to $11.99
J.'j.i'1
$12.00 to $13.99
:6 3.0,-\
$14.00 to $15.99
s '-{. J3>
$16.00 tD $17.99
~ '1-''-\
$18.00 to $19.99
~ 3'&1
$20.00 to $21.99
~b'O>
$22.00 and higher
s 5.50
"\ f\ ')
,04/08/02 MON 09:15 FAX 612-428 -8JJ9 PRODUCTr"ONuSTAMPING
RPR 04'02 12= 13PM CITY OF MONTICELLO
~ 004/004
P,2/3
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GOALS OF BUSINESS RECEIVING ASSISTANCE
EXISTING JOBS
Plellse iodlcate l'lumbcr of current employees at each level and indicate the corresponding benefit
l~vc1. These jobs you expect to relain with relocation.
Joh Creation
Full-time
1/
~
L
S-
f
s
Hourlv Waf!.e
Level
Hourlv Value
ofVoluntarv
Benefit;; (Sl
Part-time
(Excl. beneilts)
Less than $7.00
$7.00 to $7.99
$8.00 to $9.99
~ 30 Ill/a
$10.00 to $11.99
$12.00 to $13.99
$14.00 to $15.99
$16.00 to $17.99
$18.00 to $ t 9.99
$20,00 to $21.99
$22,00 and higher
,~)
. 04/08/02 MON 09:15 FAX 612 428 8JJ9 PRODUCTION STAMPING
APR 04 '02 12: 13PM CITY of MONTICELLO
--,
Q 1\0 L. cA"\"~
GOALS OF BUSINESS REC}:IVING ASSISTANCE
NEW JOBS
.~.
~
.
---....
.~ 00J/004
P.3/3
Plc.:l::ie indicatl: number of additional employees al elll;;h level and indicate th~ c(mesponding
benefit level. Number of neW jobs created over the tirst \ we years of relocation.
-'"
-
-
--.
==
-
-.
Job Creation
Hourlv Wage
Level
-., ..
-
--
Full-time
Part-time
(ExcL benefits)
Less than $7.00
-
--
$7.00 to $7.99
,..
$8.00 to $9.99
;.~
cPO
$10.00 to $11.99
-........
$12.00 to $13.99
-
-
$14.00 to $15.99
-
$16.00 to $17.99
$18.00 to $19.99
..-:--:.
$20.00 to $2L99
'~-I
$22.00 and higher
-'-:-.
--
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it
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Hourly Value
ofVolllntary
Benefits (S)
02. 30 '1VrJ .
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D~opmen.!
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.
.
www.dted.st;:!te.mn.us
April 17.2002
TO: Bruce Kallevig
C1'~
FROM: Carol Presslcy-Ols:on
Senior Loan Officer
RE:
Minnesota Investment Fund
A~ a follow up to OUi meeting of April 16. thi!" is written to review the
requirements of the Miwesota Investment Fund program administered
through this department. The program is designcd to fill the gap when
adequate financing is not available to completc the project. Typically. the
program plays a relatively small rote in tl'le :fi.tlancing package.
The following infonnatioIl mu...t be submitted to determine the credit
worthiness of the company:
1. Business Plan
2. Historical Financial Statements for the past three fiscal years. including
balance :."heets. income statements. de:ails on existing debt agreements.
$tatements of chaIlges in financial position. and notes to fina.ncial
statements. Ifthe~e statements are un-audited. they must be datcd and
signed by an authorized officcr of the company. Interim statements no
more than 90 days old must also be schmitted.
3. Projected proforma balance ~heets. income statements aIld cash flow
statC111ents for the next two years and an explanation of the assumptiO!l5.
4. Personal Financial Statement for all O\l\lTlers. guarantors and
stockholders that will be requ;t'.M to f)et'sonallv guarantee the loan.
~. -
5. A summary ofthc aging of accounts receivable/payable dated as ofthc
most recent balance sheet submitted.
6. Business Debt Schedule.
As we discussed. it is important to have thc lead lender on board. so I
would suggest that you contact David B11rd from GE Capltal to discuss
your plans in detail.
Please send the above informat.ion to Ollie Koropchak. Economic
Oevc1opment Director for the city of Monticello and myself.
'1t)
Please call me at 651.296-3898 if you have questions.
Mi.np<::<:;,otC) Dep.?rttnt:'t1T of TF~~(J Ecnr.nmic D(~v("lnptT1e."t
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