HRA Agenda 06-05-2002
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AGENDA
MONTICELLO HOlJSING AND REDEVELOrMENT AllTHORITY
Wednesday, .June 5, 2002 - 6:00 p.m.
505 Walnut Street - Bridge Room
Commissioners:
Chair Brad Barger, Vice Chair Steve Andrews, Darrin Lahr. Dan Frie, and
Bill Fair.
Council Liaison:
Brian Stumpf.
Staff: Rick Wolfsteller, Ollie Koropchak, and Lori Kraemer.
Guest: lIRA Attorney Dan Greensweig, Kennedy & Graven.
I. Call to Order.
2. Consideration to approve the May 1,2002 HRA minutes.
3. Consideration of adding or removing items from the agenda.
4. Consent Agenda.
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A.
Consideration to approve entering into an Assessment Agreement between Hans
llagen Homes and the lIRA.
B. Consideration to approve entering into a Preliminary Development Agreement
between the HRA and tlMC and authorizing HRA consultants to begin drafting
documents.
C. Consideration to adopt a resolution approving and ratifying the terms of internal
loans for TIl" District Nos. 1 ~20, 1-21, and 1-22.
5. Consideration to approve a resolution adopting a modification to the Redevelopment Plan
for Central Monticello Redevelopment Project No.1, establishing TIF No. 1-30 with
Central Monticello Redevelopment Project No.1, and adopting a TIF Plan therefor.
6. Consideration to review and discuss connict of interest as defined the Minnesota
Statutory by the HRA Attorney.
7. Consideration to authorize placement of an economic development ad in the 2003
Community Guide, Discover Monticello. and/or American Legion Display Board.
8. Consideration to authorize payment of May HRA bills.
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9.
Consideration of Executive Director's Report.
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MINLiTES
MONTICELLO 1-I0USIN(; AND REDEVELOPMENT AUTHORITY
Wednesday, May 1, 2UU2 - 6:UO p.m.
5U5 Walnut Street - Bridge Room
Commissioners Prcsent:
Chair Brad Barger. Vice Chair Steve Andrews, Darrin Lahr. Dan
Frie, and Bill Fair.
Council Liaison Present:
Brian Stumpf.
Staff Present: Rick Wolfsteller and Ollie Koropchak.
Guests: Steve Johnson. Kevin lleaton. and Kathy Froslie, Block 52. Mike Cyr. Front
Porch Associates.
1. Call to Order.
Chair Barger called thc liRA meeting to order at 6:00 p.m.
2.
Consideration to aporove the April 3.2002 I-IRA minutes.
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STEVE ANDREWS MADE A MOTION TO APPROVE THE BRA MINUTES OF
APRIL 3.2002. DAN FlUE SECONDED THE MOTION. ABSENT FROtvl THE
APRIL MEETING. FAIR ASKED "IF MCP STOOD FOR MONTICELLO
COMMUNITY PARTNERS'?"" Wrn-l NO FURTHER QUESTIONS. CORRECTIONS.
OR ADDITIONS. TilE MOTION CARRIED UNANIMOUSLY.
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J.
Considcration of addinl..'. or removinl.!: items from the al.!:enda.
Add under 4.5: Consideration to approve assigning the Contract for Private Development
by and among front Porch Associates. the HRA. and the City to First National Bank of
Elk River.
4. Consent Al.!:enda.
A. Consideration to a 1 wove amendin" the Contract for Private Redevelo ment
J.ll1on!..'. the HRA, Front Porch Associates. and thc Citv of Monticello.
Koropchak noted the amendml'nts include language relating to the conveyance of land to
Big Lake Lumber. not Front Porch Associates, and definition of the closing date. The
City Council approved the amcndments on April 22. 2002. In rcview of the Agreement
between Front Porch and Big Lake Lumber. the HRA Attorney suggested Front Porch.
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HRA Minutes - 5/1/H2
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Big Lake LUll1bcr. hrst National Bank of Elk River. liRA Attorney. and KoropchJ.k nleet
to revie\''1 the agreement relative to certain concerns.
DAN FRIF MADE A MOTION TO APPROVE AMENDING THE CONTRACT FOR
PRIV ATE DEVELOPMENT BY AND AMONG fRONT PORCH ASSOCIATES LTD.
THE l-IRA. AND THE CITY SUBJECT TO A MEETING TO CLARIFY THE TERMS
AND CONDITIONS WITHIN THE AGREEMENT BETWEEN FRONT PORCH AND
BIG LAKE LUMBER. BILL FAIR SECONDED THE MOTION AND WITH NO
FURTHER DISCUSSION. THE MOTION CARRIED UNANIMOUSLY.
4.5 Consideration to a rove assi"nin] the Contract for Private Develo ment bv and amonl!
Front Porch Associates. LTD. the BRA and the Cit to First National Bank of Elk River.
The Assignment of the Contract for Private Development was prepared by First National
Bank of Elk River and executed by Greg Holten. HRA Attorney Grcensweig reviewed
the Assignment and had no concerns. With the Contract being assigned to First National
Bank, the pay-as-you-go installments are paid to the Bank. not Front Porch. The City
Council will consider assigning the Contract for Private Development at the May 13.
2002. Council meeting.
BILL FAIR MADE A MOTION TO APPROVE ASSIGNING THE CONTRACT FOR
PRIV ATE DEVELOPMENT BY AND AMONG fRONT PORCH ASSOCIATES,
LTD, THE HRA. AND THE CITY TO FIRST NATIONAL BANK OF ELK RIVER
SUBJECT TO A MEETING TO CLARIFY THE TERMS AND CONDITIONS
WITHIN Tl-IE AGREEMENT BETWEEN FRONT PORCH AND BIG LAKE
LUMBER. DARRIN LAHR SECONDED THE MOTION AND WITH NO FURTI-lER
DISClJSSION. THE MOTION PASSED UNANIMOUSLY.
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5.
Consideration to hear
52.
ment of Block
Koropchak informed HRA members of her conversations with Froslie and Springborg
following the AprilHRA meeting and of the meetings held bet\veen O'NeilL Johnson. a
potential tenant. and herself relativc to Block 52.
Steve Johnson informed members. he and Kevin Ileaton ovvn the southerly portion of
Block 52 from Pine Street to POilU. with the exception of the lIRA lot. and are vvilling to
reinvest and redevelop in Block 52. With Block 52 being an identified area for
redevelopment within the Revitalization Plan. Johnson submitted a copy of a proposal
prepmed by the iv1cComb Group. LTD. and asked the lIRA to participate with the costs
of the analysis. The proposal. to conduct a development feasibility analysis for Block 52.
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2
HRA Minutes - 5/1/02
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outlined of the objecti\'l:s. work tasks and meetings. budget. and report purpose. Johnson
explained thl.: analysis \\ould determine building square footage: property values by
building value Vl.:rsus income value: project size to support debt: ete. Froslie indicated
her lirst option was a buy-out with consideration to rent or partner.
Fair asked Johnson and lleaton as to their contribution toward the $15,500 budget
amount for the analysis. Johnson and Heaton both agreed to contribute $2.000 each.
Lahr followed stating once we know the market. square footage. parking. and kind of
businesses~ how are the tenants found or who finds the tenants? The two work tasks to
dewrmine the amount ofTIF created and to determine the eligible TIF expenditures are
duplication of work completed by the HRA staff and its financial consultant stated
members. Andrews noted normally. the HRA works with developers who know the
market, they come to the II RA stating this is what /its, and the HRA is not part of the
marketing analysis. Additionally. Andrews noted that if the HRA participates. the
completcd report must be availablc for use by the community and not thc exclusive
rights of the developers, lenders. and other investors. Fair was in favor of a master plan
to redevelop the entire block.
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BILL F AIR MADE A MOTION THAT STEVE JOHNSON AND KEVIN I-IEATON
CONTRIBUTE $2.000 EACH AND THE HRA CONTRIBUTE $11.500 OF TilE NOT
TO EXCEED $15.500 BUDGET FOR THE MCCOMB GROUP TO CONDUCT A
DEVELOPMENT FFASIBII.ITY ANALYSIS FOR BLOCK 52 OF MONTICELLO
WITH TI-IE COMPU':TED ANALYSIS A PUBLIC DOCUMENT. STEVE
ANDREWS SI-:CONDED TIlE MOTION. Discussion centered around the duplication
ofTIF analysis. Brad Barger made a motion to amcnd the motion deleting the TIF
analysis tasks and $1.300. Bill Fair seconded the amendment. After further discussion,
Barger and Fair withdrew the motion to amend. THE MOTION CARRIED
UNANIMOUSLY.
Asked how long to complete the analysis. Johnson responded about 90 days. The liRA
members requested a shorter completion time.
6. Consideration to authorize Davment of April HRA bills.
Thc II RA disnlssed the need to shop around ft")r a financial consultant or to increase the
Tl F Lkposit 01" $5.000. Some members felt to increase the deposit would scare off some
de\elopers. K.oropchak noted administratiye costs \\'hich exceed $5.000 are billed the
developcr per the Contraet ll)f Pri\'ate Development. Only if a project does not proceed
and no deposit \\as made. is the HRA out any dollars. DAN flUE MADE A MOTION
AtlTllORIZINCi P/\ Yi\IENT OF THE APRIL liRA BILLS. SECONDED BY STEVE
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HRA Minutes - 5/1/02
ANDr~YWS AND Willi NO FURTIIER DISCUSSION. TI-IE MOTION CARRIED
lJNANl MOlJSI, Y.
7.
Consideration of E:-:ecutive Director's Report.
In addition to the written report. Koropchak informed members that a for sale or lease
sign has been posted at Lake Tool and according to the Wright County Auditor's Office.
the second hal l' of the 200 I property taxes are delinquent. Additionally IRTI has been
invoiced for $1,514. the di ffcrence between the TIF deposit and the total administrative
costs. Lastly. Koropchak noted. that UMC informed her that it is highly unlikely they will
remain in Corcoran. Other communities now being looked. at are Rockford, Rogers.
IIanover. and Greenslield. Barger announced he would golf as a guest of the Marketing
Committee and Frie was golling with his company.
S. Committee Reports.
None.
9.
Other Business.
Mike Cyr. Front Porch Associates, requested an additional $5.000 in TIF assistance. The
addi tional dollars to recover some of the developer's cost to clear the title of the vacated
Vine St\'l.:et publi<.: right-of..\\ay. As you recall. there was an encroachment on the Vine
Street public righH)f~way. The City Council was willing to proceed with an ejectment
process and reduced the land price from $83.000+ to $75.000. The completion time and
the outwme of the ejectment process could not be guaranteed by the City. The developer
pro<.:eeded to negotiate with the encroacher and. to obtain a quit claim with no direction
from the Council to pay. The IIR^ felt perhaps there was a lot of speculation and did
not consid('r the request.
10.
Adjournll1('nt.
BILL FAIR tvL\DE A MOTION TO ADJOURN THE MAY I-IRA MEETING. SECONDED BY
D/\N FRIE AND \VITI-I NO FURTHER BUSINESS. TlIE liRA MEETING ADJ()URNED AT
~U)O P.I\1.
Ollie Koropchak. Ren1rLkr
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4A.
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liRA Agenda - 6/05/02
Consideration to a rove enterin into an Assessment A reement between Hans
Ha2en Homes. Inc.. and the BRA.
A. Reference and backl!round:
Because the liRA acquired and demolished the northerly one-half of Block 54 and has
agreed to provide a tinished pad site to the developer, the dollars invested by the BRA is
considered up-ii"ont financing. Typical with up-front financing, an Assessment
Agreement is part of the Contract for Private Redevelopment.
The Assessment Agreement states the developer, HRA, and the County Assessor agree to
a minimum market value of the 10 proposed townhouses. The minimum markct value of
each town house beginning January 2, 2003, is $190,000.
Upon execution of the Agreement, the County Assessor will rcview the plans and
specifications agreeing to the minimum market value.
B. Alternative Action:
1 . A motion to approve cntering into an Assessment Agrecment between Hans
Hagen Homes, Inc. and the HRA.
2.
A motion to dcny entering into an Assessment Agreement between llans I {agen
HOlTleS, Inc. and the HRA.
3. A motion to table any action.
C. Recommendation:
As this is a housekeeping item. the recommendation is alternative no. 1.
D. Suoportin2 Data:
Copy of the Asscssment Agrecment.
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4B.
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HRA Agenda - 6/05/02
Consideration to a rove enterin ., into a Preliminar
between the BRA and llMC and authorizin
documents.
A. Referenee and background:
I laving received a verbal commitment from Don Tomann, Vice President or UMC on
friday, May 24, 2002, the financial team representatives from the State, Central
Minncsota Initiativc Fund, grant writer, lIRA Attorney, and Koropchak will meet on
friday, May 31, with the company financial officers to review the funding program
application process and required information to secure funding approval as outlined
within the proposal submitted to the company. City staff and consultants, UMC staff and
general contractor, and pfeffer met on May 23 relative to construction, site, and fec
questions.
In order to meet the company's plan to begin construction late August or September and
with the cancellation ofthc July I-IRA meeting, it is anticipated that an BRA meeting will
be held W edncsday, June 26, 2002, to adopt a resolution for creation of TIF District No.
1-31 to assist UMC Therefore, the HRA financial consultant can draft the Tlf Plan and
meet thc required notices during the month of July with approvals by Council in August.
And thc HRA Attorney draft the Contract for Private Development.
The Preliminary Development Agreement will be provided to UMC for execution and
payment of the $5,000 deposit at the meeting on May 31. Thereafter would the HRA
financial consultant be authoriz.ed to begin drafting of the TIF Plan.
B. Alternative Aetion:
1. A motion to approve entering into a Prcliminary Development Agrcement
between the HRA and UMC and authorizing liRA consultants to be drafting
documents.
2. A motion to deny approval for entering into a Preliminary Development
Agreement between the lIRA and UMC
3. A motion to table any action.
C. Recommendation:
Alternative No.1.
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~ '02 i2:i8PM CITY or MONTICELl.U
Pleasc indicate nUlubet or additional employees at each le'Jd and indicate the corresponding
bene r" Icvel. tJ un,ber of ne,," jobS created ovet tM Ii Tst tWO ycars 0 r relocation
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COI>LS of BIJSlJ'~SS REC.JV1~G ,,-SSlS'T ...\'lCE
NEW JOBS
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f\,\\\-thne Part-fnne
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(Exd. benefits)
Less than $7,00
$7.00 to $7,99
$8,00 m $9.99
~10.00 t.o $11.99
$12.00 t.o $13.99
$14.00 to $\5.99
$ \ 6.00 to $ \7 ,99
$18,00 to $19.99
$20.00 to $11.99
$22,00 and higher
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('02 1.2: 1.8PM CITY of MONTICELLO
GOALS OF BUSINESS RECEIViNG ASSIST ANCE
EXlSJING JOBS
p[case indicaee nm"ber of cunent employees al each level and indicate the conespondrng hencEt
leveL Thesl::: jobs you expect to retain with relucation.
Job Creation Hourlv Wa~ J::i.Q}lrly V:.tlue~
Level .Qf V oluntarv
lli<D~fllS (Sl
Full-time Part~timc (Exd, benefltS)
--- Le:;:; tban $7.00 ...--------............................-
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----------- $7,00 to $7.99 .~'.---"-~-'~
$8_00 to $9.99 ------
J. $\0.00 to $\\.99 ~?.ll-t
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\\ A $\2.00 to $13.99 :i :, .oLl.
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\3 $14.00 to $15,99 'irL.\.J.3
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lL\ $16.00 to $17.99 lI.L{."l'i
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[6 ~ $18,00 to $19.99 ~ 3.3/
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\/ $20_00 to $21.99 ],(;.03
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_21- $22.00 and higher .$ 5. So
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~ 4. 2002
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11~'AM
MC10Cl-'l1
EHLERS'& ASSOCIATES
,..v, v'" I I
aty c>tMo"ijcenl>
NeW 'E.cnftnmic ])co/elopment Pi.tract
MlInu{llcturiPg facility
T.I.F. CASU FLOW ASSUMPTIONS
Inna~Ol\ Rale (on "",11<.\ "",.... 0l\1y . \lilt. ....1. inare...... aN "'" a.ap\ll~l
Int9r95t Rata
rex i:$~1O n RillS
Q,ooao~
7,250''''
".17710 Fay 1.002. Prelim City rata
BASE VALUE INFORMAtION
Tolal
V81ull
~
C8ll8cllV
PID
o
a
a
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ElI\lmalll Only
$ubwlal
Tot" Orion..,,' Markal Valull
o
CII'" Rale,
Ho"",stead "578,000
HomeatH" <578,000
Aparvnlln[
Apo","enl 4(d)
Commer<:ral >5'50.000
COJl'l/l\.IrOllll <$150,000
1.0000% ".y 0.4
1 .0000'l4 ",.y 04
\ .2500',4 Pay 0.4
1.:2500% PIlY 0.4
2.0000% pay 0.4
1.50000/. P.y 04
o Pay 2004
Original Tall. CaPloilY (wllon \1$8 i$ cl\angecl),
PROJEct vALUE INFORMA TIOtJ
lo;o.....n9
TJ~~,,~ UnilS or ~\lPer To~IMa~el To.ITax TlUIU"/ year Ye.r
Pro r.r..f UnillsJ. Valu' Camlcitv unlllS r. consuucteo Payable
,..nufacmrlnO 1.IDO,ooo 51,150 2002 2004
TOlal '2 eoo,OOO 51 250
Type ot Tal< I~orern\ll\l DismCI
SUMMARY
74,708 Aller all phases complelll
Total Anl\ual Tu 'I\cremen~Aftar AOmin.
"f'l<>1 U\t!.dirlg 5\:lt. propaltf lUe. illiG n18tl1l\ WlII....1\lIIY ratIl'& ",nlCll "'.In~ _1""" ...."""1.. -.1>"".
\lInInO'201
pf8ll11rea ~ Enters .Gllkn.",,, o.ly
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4,2002 11:33AM
EHLERS & ASSOCIATES
NO, e~:A 1
~, j
City (If MDntlcen(l
Ne~ Econumic Devdopment District
Manu.l'acnuing Fadtit)'
TAX INCREMENT CASU FLOW
58m~Mn~al Sial'll ....udl"'r HMo $emi-Allnual Cumulil'lMl PAYt.\e:NT OATlil
PeRIOD BEGINNING Groaa TaX at "I Nel Tax NPII PERIOD ENDING
Mm. Yr. Incl'1IIl.me.nt .0.50% .10.00% Incremont 1.2S'A Yr>;. m. Y'.
0~1 2002 02-01 2003
02-01 2003 0 0 0 0 0 0 0 0 08-01 2003
0&-01 2003 0 0 0 0 0 0 0 0 02-01 2004
02-01 2004 0 51,250 51,250 ;\7,;\54 (1&7) (3,717) :;3,450 30,061 o 5 06-01 ..00.4
09-01 2004 0 51,250 51,250 <17,354 (11S1) ~,717) 33.450 59,Oil 1 0 02-01 2005
0'2.01 2005 0 51.250 5',250 37,354 (1&7) (3,717) 33,~50 97,06e 1,5 08.01 2005
()B.01 2005 I) 51,2.S0 51,250 37,35~ (1 en (3,717) 33,450 1",051 2.0 02-0' 2006
02,01 2005 0 51,250 51,0150 37,:;54 (187) (3,717) 33A50 140,152 ~,5 08.01 2006
0~.o1 2006 Q 51,j!S0 51,250 37,354 (187) (3.717) 33,450 16'S.31 0 3.0 02.01 2007
02-01 2007 0 51,250 5' ,250 37,354 (187) (3.717) 33,.50 1 99,5&9 3.5 08.01 2007
08-01 2007 0 51,250 51.2.50 37,3S4 (187) (3,717) 33,450 213,015 '.0 0:2-01 200e
02.01 2008 0 51,250 51.250 37,354 (187) (3,717) 33,4!jQ .35,1l27 . 5 01l.o1 2008
08,01 2008 0 51,250 51,150 37,354 (181) (3,717) 33,450 257,4.46 5,0 02.01 '2009
02-01 2009 0 51,:250 $1,r-i0 37,354 (187) (3,717) 33,.50 2.711,501 S.S 08.01 '2009
06-01 2009 0 51,250 51,2.50 37,354 (187) (3,717) 33,450 296,920 6,0 0'2.01 2010
02..01 2.010 0 51,250 51,250 37,354 (187) (3,717) 33,450 318,428 8.5 08..01 2010
0&..01 2010 0 51,26ll 51,250 37,854 (1&7) (3,717) 23,450 337,350 1.0 02-01 2011
02-01 201' 0 5',250 51,250 37,354 (167) (3,717) 33,450 355,~10 7,5 08.0' 201'
OQ.{l1 ..011 0 51.250 51.:~50 37,354 (1&7) (3,7") 33,450 373,23' 8,0 02-01 2012
02~1 2012 0 51,250 51,250 57,354. (187) (3,711) 33,450 390,2301 a 5 0&..01 2012
08-01 01 0 51 250 51250 3.7354 18 3,717 3 A 406 646 90 02.01 2013
Total$ sn 369 33S2 il8 901 802 108
PI'll~entll...lues from 8/1102 406846
.,.".,.. ptoJ<:<uom ole ..Ii...... .llIy b_ "I""'''''a....' cao1...... ((or """"'.... ...,""'... Tl.. paj...u...,.;ll VW'f oJolp,".....IIlll'll .:1''111&'''. Ill< P"'l>"" '"" 'Y"....
- \lIO........ d~ .ohadalo
Mo>lmlln l\l"i1il\Cl...."I' Ii 24 ,_ _ i1\101J<lil'i ""...,n.......... ofiAomnl>l.' ..IIi.:l. .0000d ~......wd... WO).llin..........iII """'... in2OO'.l, clilUl.:t 110 '~_I<~ by 01\.'_.
liIr"n0201
P"'P'"'' .Y lihler.J - E._"" Only
MC10Q00l
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Ultra Machining Company
April 2002
FINANCIAL ASSIST ANCE
ESTIM1\J'ED COSTS OF. PRO] ECT
B.caLGst;l~
Construction Costs
Land Costs
Trunk Fees
WAC/SAC
Perm i ts
Contingency
Total Real Estate
$2,600,000
$ 653,400
* $ 92,600
~$ 38,360
$ 24,340
$ 16,300
$3,425,000
Machi nery/Equipmenl
Machinery/Equipment
Total Machinery/Equipment
$J ,000,000
$1,000,000
TOT AL ESTI MATED COSTS
$4,425,000
City of Monticello Financial Propos~
Through the use of Tax Increment Financing, the City of
Monticello is prepared to reimburse UMC up to $395,000 NPV
over 9 years at 7.25'1., interest rate for 6 acres of the land. TIF
application fee, $5,000.
If UMC expands their building within five years ofTIF approval,
ad d i tiona I TI F ass ista nce may be ava ila b Ie fo r si te i m provem en t
costs.
HRA Agenda - 6/05/02
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4C.
Consideration to adopt a resolution approving and mtifyinl! the terms of internal
loans for TIF District Nos. 1-20.1-21. and 1-22.
A. Reference and background:
Thc 2001 Legislature mnended the TIf Act by specifically allowing for intcrCund loans
within tax increment financing districts. The law specifies that the loan or advancc must
be approved by a resolution of the governing body before the funds arc transferred,
advanced or spent, whichever is earliest. Additionally, the section also specifics that the
term and interest rate charges must also be approved by the resolution, subject to interest
rate limits in the statutc.
It was suggested by the BRA Financial Consultant that the HRA go back and approve a
resolution for each of the interfund loans without resolutions. Five interfund loans
between the Authority and the lIRA General Fund or City have been pay ofT so no need
for resolutions. Below is a list a TIF Districts and loan amounts between the Authority
and the liRA General Fund or City without resolutions.
TIF District No. ~ Date Amount Rate
. 1-20 Prairie West HRA General Fund 7/1/97 $65,000 &SXl
1-21 Lake Tool H RA General Fund 12/5/97 $37,900 8.25%
1-22 Downtown (Hawkins) HRA General Fund 5/1 /98 $56,46& 6.0(Yo
(Schlief (Tn Down payment)HRA General Fund 8/18/9& $20,674 6.0%
(O'Connor) City General Fund 2/19/02 $52.263 6.0%
9/27 /0 I $92,200 6.0%
Rcsolutions and loans werc approved by the Authority and City for the acquisition of the
Carlson, Bostic, Sehliefrcmaining balance of CFD, and Midwest Graphics.
Legislation amended the Act because some jurisdictions created interfund loans with
extreme interest rates.
This is a housekeeping item for recording purposes.
B. Alternative Action:
1. A motion to adopt a resolution approving and ratifying the termS of internal loans
for TIF District Nos. 1-20, 1-21, and 1-22.
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H RA Agenda - 6/05/02
2. A motion to deny adopting a resolution .........................
3.
A motion to table any action.
C. Recommendation:
Rccommendation is Altcrnativc No.1.
D. Supportinl! Data:
Copy of each resolution stating terms of loan.
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Housing and Redevelopment Authority
in and for the City of Monticello, Minnesota
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RESOLUTION NO,
APPROVING AND RATIFYING THE TERMS OF $
CONNECTION WITH 1'11" DISTRICT NO.
INTl<:RNAL LOAN IN
BI~ IT RESOL VEl) BY TIlE BOARD OF COMMISSIONERS ("COMMISSIONE.RS")
OF THE llOUSINC AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF
MONTICELLO, MINNESOTA ("AUTHORITY") AS FOLLOWS:
Section I.
Back~,round.
1.0 I. The City has heretofore approved the establ ishment of Tax InerelTlent Financing District
No._(the "TIF District") within Central Montieello Redevelopment Project No.1 (the
"Project"), and has adopted a tax increment financing plan for the purpose of finaneing eertain improvements
vvithin the Project.
1.02. The Authority determined to pay for certain costs identified in the Tax Increment Financing
Plan consisting of (collectively, the "Qualified Costs"), which costs vvere
financed on a temporary basis from I-IRA General Funds pursuant to a disbursement from such fund of
on
.
1.03. Under Minnesota Statutes, Section 469.178, Subdivision 7, the Authority is authorized to
advance or loan money from the I-iRA's general fund or any other fund from which such advances may be
legally made. in order to financc the Qualified Costs and to ratify any such advances or loans made prior to
August 1. 200 I.
1.04. The Authority intends to reimburse itself for the Qualified Costs from tax increments derived
from the TIF District in accordance with the terms of this resolution (which terms are referred to colkctively
as the "TIF Loan").
Section 2.
Terms of TIF Loan.
2.0 I. The Authurity shall repay to the I-IRA General Fund from which the Qualitied Costs are
initially paid. the principal amount of $______..~-.- together with intt:rest on the principal amount
t:xpended accruing rrom the datt: of each initial expenditure, at the greatest or (a) the rate specified under
Minnesota Statutes. Section 270.75. or (b) the rate specified under Minnesota Statutes, Section 549.09.
The interest rate 1'01' each calendar year during the term or the Tl F Loan wi I I be detennined as of each
January I. using the maxilnurn rate under clauses (a) or (b) in effect as of that date.
.
2.02. Principal and interest ("Payments") shall be paid semi-annually on August I, ..__._._ and
t:ach August I and February I thereafter to and including the earlier of (a) the date the principal and accrued
interest orthe T[I: Loan is paid in full. or (b) the date of last receipt of tax increment rrom the 'I'll" District
("Payment Dates") which Paynlcnts will be made in the arnount and only to the extent or Available ",'ax
Increment as hereinafter defined. Payments shall be applied lirst to accrued interest and then to unpaid
principal. Interest accruing from the date of each expenditure to the lirst Payment Date shall be
compounded semiannually on February I and August I of each year and added to principal.
.
1.03. Payments on Lhis TIF l.oan arc payable solely from "Available 'Cax Increment." which shall
mean, on each Payment Date. all ot'Lhe ta:\ incremcnt generated in the preceding six (6) months ,vith respect
to the property within the TII" DisLrict and remitted to the City by Wright CounLy, all in accordance with
Minnesota Statutes. Sections 469.174 Lo 469.179. PGymenLS on this TII: I.oan arc subordinate to any
outstanding or ruture bonds. notes ur contracts secured in whole or in part with !\ vai lable ['ax Increment,
and arc on parity with any other ouLstanding or t'uture intert'und loans secured in whole or in part with
!\ vailable Tax Increment.
2.04. ['lIe principal sum and all accrued inLerest payable under thisT[F Loan are ploc-payable in
whole or in parL at any Lime by Lhe Authority without premium or penalty. No partial prepayment shall aflCct
the amount or timing of any other regular payment otherwise required to be made under this TIF Loan.
2.05 This TIt: I.oan is evidence 01' an internal borrowing by thc Authority in accordance with
Minnesota Statutes. Section 469.178, subdivision 7, and is a litl1ited obligation payable solely from Available
Tax Increment pledged to the payment hercof under Lhis resolution. 'This 'flF Loan and the intcrest hercon
shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision
thereof ineluding. without limitation, the Authority. Neither the Statc of Minnesota, nor any political
subdivision thereof shall be obligated to pay the principal of or interest on this TIF Loan or other costs
incident hereto e:\cept out of Available Tax Incrcment. and neither thc full faith and credit nor the taxing
power of the State or Minnesota or any political subdivision thereof is pledged to the payment of thc
principal of or interest on this TIF Loan or other costs incident hereto. The Authority shall have no
obligation to pay any principal amount of the TIF Loan or accrued interest thereon. which may remain
unpaid after the linal Paymcnt Date.
.
2.06. The Authority may amend Lhe terms of this TIF Loan at any tilTle by resolution of the
Authority's Board of Commissioners, including a dctermination to forgive the outstanding principal amount
and accrued interest to the extent permissible under lavv.
Section 3.
rZati fi.cation.
3.01. The Board ratifies all actions of its staff and consultants in making the TIF Loan. and in
making all the prior repaYlllents. StalT is authorized and directed Lo attach to this resolution schedules
indicating Lhe paYlnents applied to the '["IF Loan and the outstanding principal amount ot' Lhe TIF Loan as of
the date 01' approval of this resolution.
3.02 '["he Board auLhorizcs and directs stall to take all actions ncccssary to repay the outstanding
balance ot' the 'I'll" Loan in accordance with this resoluLion.
Section 4.
1~ITective Date. This resolution is effective upon the datc of its approval.
Adopted Lhis_______ day of _.________.___.2002.
!\TTLST:
- - .__.._,.,_."._-,~.",'_.---"- -. --..--".---. .-..,--.' ---.-..--.,.-
Chair
.
.__.,__n___ .-- .._-"-,--" ,..- ..---...-----...--------..'.-...'--
L:xecutivc Director
1)/\ WN/VV( lIW/( lLl.IIIIIRi\ 1{ISOLlIIION
.
.
.
BRA Agenda - 6/05/02
5.
Consideration to a rove a resolution ~ldo tin the modification to the
Redevelo ment Plan for Central Monticello Redevelo ment Pro'ect No. l' and
establish in J TI F District No. 1-30 within Central Monticello Redevelo ment Pro' eet
No.1 and adoptine the TIF Plan therefore.
A. Reference and backeround:
Sheri Harris, Ccntral Minnesota Housing Partnership, either has closed or has executed
purchase agreements for all five properties. Because of the increascd costs to acquire and
to enhance the quality of the finished product, Sunny Fresh Foods, Inc. has become a
partner in the project through the contribution of funds.
Sometime ago, the HRA and Council approved the preliminary concept for TIF
assistance associatcd with a scatter housing project and the developer, Central Minnesota
Housing Partnership (CMHP). The public hearing date for establishment of TIF District
No. 1-30 has been set for June 24, 2002, by the City Council. The TIF Plan was
distributed to the taxing jurisdictions on May 24, 2002, for compliance with the 30-day
notice to comment. Thc Planning Commission will approve the TIF resolution on June 4.
Attorney Dan Greensweig, Kennedy & Gravcn, will begin drawing the Contract for
Private Development for HRA review and approval on June 26, 2002. The I-lM agreed
to TIF assistance in the amount 01'$125,000 for acquisition and demolition.
As you rccall the district being established is a Housing District. The district will consist
of five parcels in thc area Minnesota Street between West 6 Street and 5 Street. The
district will include the construction of 11 single family, owner-occupied affordable
homes. 950A) of the units in the district must be sold to persons at 100(% of median
income for a family of one to two ($74,700) and at 115% of median income for a family
of 3 or more ($85,205). The developer has agreed to minimum improvements of
approximately 1,200 sq ft main levclliving space per home with a selling price at
appro xi mate I y $11 5,00. Construct; on to commence between ^ ugusllOc1o ber, 2002. The
life duration of the Housing District is 25 years.
Because CMIIP is also providing gap financing and affordable mortgage products to
potential buyers, the income levels must meet the Greater Minnesota Housing Agency
restriction of 80% of statewide median income ($51,600 lor a family of 4). I'm
anticipating the Preliminary Development Agreement executed by and returned from
CMIIP on May 30. Remember, the liRA agreed to waive the $5,000 deposit.
The public purpose of TIF District No. 1 ~30 is to provide affordable housing and
redevelop a substandard area.
H RA Agenda - 6/05102
.
The HRA is asked to approve the attached resolution f()r the establishment of TIF District
No. 1-30.
H.
Alternativc Action:
1.
^ motion to approve the resolution adopting the modfication to the
Redevelopment Plan for Central Monticello Redevelopment Project No.1; and
cstablishing TIF District No. I -30 within Central Monticello Redevelopment
Project No.1 and adopting the TIF Plan therefor.
')
A motion to deny approval of the resolution ..........
^'
-'-
^ motion to table any action.
c.
Recommendation:
Recommendation is alternative no. 1
D. Supporting Data:
.
Copy of resolution for adoption, summary of the TIF Plan and but for qualifications.
.
2
.
MONTlCELLO HOUSING AND REDEVELOPMENT AUTHORITY
CITY OF MONTlCF~LLO
WRIGHT COUNTY
STATE OF MINNESOTA
RESOLUTION NO.
-.....-----'-'--.-.-'-
RESOLUTlON ADOPTING A MODIFICATION TO THE REDEVELOPMENT
PLAN FOR CENTRAL MONTICELLO REDEVELOPMENT PROJECT NO. t,
ESTABLISHING TAX INCREMENT FINANCING DISTRICT NO. 1-30 WITHIN
CENTRAL MONTICELLO REDEVELOPMENT PROJECT NO.1, AND
ADOPTING A TAX INCREMENT FINANCING PLAN THEREFOR.
WHEREAS, it has been proposed by the Board of Commissioners (the "Board") of the
Monticello Housing and Redevelopment Authority (the "HRA") and the City of Monticello (the "City")
that the HRA adopt a Modification to the Redevelopment Plan for Central Monticello Redevelopment
Project No. I (the "Redevelopment Plan") and a Tax Increment Financing Plan for Tax Increment
Financing District No. 1-30 (the "TI F Plan") therefor (the Redevelopment Plan and the TI F Plan are
referred to collectively herein at the "Plans"), all pursuant to and in conformity with applicable law,
including l'v!inneso1u S'(U(lIles, Sections -/69.001 10 -/69.0-/7, und Sections -/69.17-/10 -/69.179, inclusive,
as amended (the "Act"), all as reflected in the Plans and presented for the Board's consideration: and
. WHEREAS, the HRA has investigated the facts relating tn the Plans and ha> caused the Plans to
be prepared: and
WHEREAS. the HRA has performed all actions required by law to be performed prior to the
adoption of the Plans. The HRA has also requested the City Planning Commission to provide for review
of and written comment on Plans and that the Council schedule a public hearing on the Plans upon
published notice as required by law.
NOW, TI-II:REFORE, BE IT RESOLVED by the Board as follows:
I. The HR^ hereby fInds that Tax Increment Financing District No- 1-30 is in the public
interest and is a "housing district" under lvlinnesotu ,",'(ututes, 5,eUion -/69.17-/, Suhd 11, and finds that the
adoption of the propnsed Plans contimns in all respects to the reqrrireme..,ts of the Act and will help fulfill
a need to develop an area of the State of Minnesota which is already built up and that the adoption of the
proposed Plans will help provide need for affordable housing and thereby serves a public purpose.
2. lhe HR^ further finds that the Plans will afford maximurn opportunity, consistent with
the sound needs for thc City as a whole, for the development or redcvelopment of the project area by
priv>rte c..'lerprisc in thrrt the intent is to prnvide only that public a>sistanee neee>sOCY to make the private
developments financially feasible.
3. Conditioncd upon the approval thereof by the City Council following its public hearing
the,,'eon, the Plans, as presented to the HRA on this date, are herchy approved, cs,"blishcd and adopled
and shall be placed on file in the office of the City Clerk.
.
.
.
4. lJpon approval of the Plans by thc City Council, the City Clerk is authorized and dirccted
to forward a copy l)f the Plans to thc Minnesota Departrnent of Revcnuc pursllant to M inncsota Statutes
469.175, Suhd. 4a.
5. I'he C'ity Clerk is authorized and directed to forward a copy of thc Plans to the Wright
County Auditor and request that the ^uditor certify the nriginal tax capacity of the District as described in
the Plans, all in accordance with Minnesota Statutes 469.177.
^ppmved by the Board of Commissioncrs of the Monticello Housing and Redevelopment
Authority this 5th day of June, 2002.
"
Chair
ArrEST:
Secretary
.
. Ehlers & Associates, Ine.
Tax Increment Financing District Overview
City of Monticello - Tax Increment Financing District No. 1-30
The following summary contains an overview of the basic elemcnts of thc Tax Increment Financing Plan
for TIF District No, 1-30. Morc detailed information on each of thcse topics can be found in the complete
TIF Plan.
Proposed action:
Establishment of Tax Increment Financing District No. 1-30 and the
adoption of a Tax Increment Financing Plan.
Adoption of a Redevelopment Plan Moditication for the Central
Monticello Redevelopment Project No. I. (The Moditication is to
include the project activities anticipated in Tax Increment District No.
1-30.)
Redevelopment Project:
A Single~Family Housing District
=Type ofTIF District:
Parcel Numbers:
.
155-0 I 0-009030
155-0 I 0-009040
155-0 I 0-009050
155-010-009060
155-010-009061
Proposed Development:
The District is being created to facilitate construction of II owner-
occupied homes to be purchased by families with incomes below 100%
to 115% of the metropolitan-area median income.
The duration of District No. 1-30 will be 25 years from the date of
receipt of the tirst incrcment (26 years of incrcment). The date of
rcceipt of the lirst ta\. increment will be approximately 2004. Thus. it
is estimatcd that District No. 1-30, including any modifications of the
Plan for subsequent phases or other changes. would term inate after
2029, or when the Plan is satisfied. If increment is received in 2003,
the term of the District will be 2028.
Ma\.imum duration:
Estimated annual tax
increment:
Up to $\6.156
.
TIF District Overview
.
Proposed uses:
The TIF Plan contains the follo\\ing budget:
LandlBui Iding Acquisition ...............................................$125,000
Site Improvements/Preparation ............................. ...... ....... $70,000
Publ ic Uti I ities............................. ........................... ............ $25 ,000
\-lousing Development... _.... ................ .............. ....... ........ ... $50.000
Streets and Sidewalks .......................................................$50,000
Interest............................... ........... .................................... $200,000
Administrative Costs (up to t 0%) ......................................$.50,000
PRO.JECT COSTS TOT AL ..........................,...............$545,000
Interfund Loans/Pay-As- You-Go/G.O. TIF Bonds .........$~O,OOO
TOT AL FINANCING AND PROJECT COSTS ........$795,000
See Subsection 2-10, page 2-5 of the TIF Plan for the full budget
authorization. Additional uses of funds are authorized which include
inter-fund loans and transfers and bonded indebtedness.
Form of financing:
An interfund loan and/or a G.O. TIF bond.
Administrative fee:
Up to 10% of annual increment, if costs are justified.
The 200 I Legislature eliminllted the provisions for a reduction in state
ta:-:. increment financing aid (RISTIFA) or the alternative qualifying
local contribution.
LGA/HACA penalty:
.
Interfund Loan Requirement:
I f the City wants to pay for adm in istrative expend itllres from a tax
increment fund, a resolution authorizing a loan from another fund must
be passed PRIOR to the issuance of the check.
At least one of the following activities must take place in the District
within 3 years from the date of certification:
. Bonds have been issued
. The authority has acquired property within the district
. The authority has constructed or caused to be constructed
public improvements within the district
. The estimated date whereby this activity must take place is
June, 2005.
3 Year Activity Rule
(f-lol)./70 Subd / oj
Page 2
.
TIF District Overview
.
4 Year Activity RLlIe
(," --IM./7o Suhd 6j
After fOLlr years from thc date \11' certification of the District one of the
follo\ving activities must have been commenced on each parcel in the
District:
. Demolition
. Rehabi \ itation
. Reno\ation
. Other site preparation (not including utility serVIces such as
sewer and water)
. If the activity has not been started by the approximately June,
2006. no additional tax increment may be taken from that
parcelunti I the commencement of a qualifying activity.
Within 5 years of certification revenues derived from tax increments
must be expended or obligated to be expended. Tax increments are
considered to have been expended on an activity within the District if
one of the following occurs:
. The revenues are actually paid to a third party with respect to
the activ ity
. Bonds. the proceeds of which must be used to tinance the
activity, are issued and sold to a third party. the revenues are
spent to repay the bonds. and the proceeds of the bonds either
are reasonably expected to be spent before the end of the later
of (i) the nve year period. or (ii) a reasonable temporary period
within the meaning. of the use of that term under~. 148(c)( I) of
the I nternal Revenue Code. or are deposited in a reasonably
required reserve or replacement fund
. Binding contracts with a third party are entered into for
performance of the activity and the revenues are spent under
the contractual obligation
. Costs with respect to the activity are paid and the revenues are
spent to reimburse for payment of the costs. including interest
on unreimbursed costs.
. Any obligations in the Tax Increment District made after
approximately .June, 2007. will not be elig.ible for repayment
from tax increments.
5 Year Rule
(.~. .:169.1763 Suhd 3)
.
Page 3
.
.
.
.
TIF District Overview
130UNDARY MAPS OF CENTRAL MONTICELLO REDEVELOPMENT PRO.JECT NO.1
AND TAX INCREMENT FINANCING DISTRICT NO. 1-30
Page 4
-q
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Tax Increment Financing District No. 1-30
Central Monticello Redevelopment Project Area
City of Monticello
Wright County, Minnesota
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.
5122102
Ehlers and Associates, Inc.
CITY OF MONTICELLO, MINNESOTA
T.I.F. CASH FLOW ASSUMPTIONS
Interest Rate
Tax Extension Rate:
Inflalion Rate:
Inflation on tax rates is not captured by TIF.
PIN
155-010-009030
155-010-009040
155-010-009050
155-010-009060
155-010-009061
Total
BASE VALUE INFORMA nON
Percentage Total Parcel Pay 2001
of Parcel Market Value Value
100.00% 39,000 39,000
100.00% 39,200 39,200
100.00% 63,000 63,000
100.00% 20,700 20,700
100.00% 50,400 50,400
212,300 212,300
7.000%
1.45859 Pay 02
2.0000%
Tax
Capacity
390 Estimate
392 Estimate
630 Estimate
207 E$l;mate
504 Estimate
2.123 Upon conversion
Type of Tax Increment District:
Type of Development:
Number of Units
PROJECT VALUE INFORMATION
Housing
Owner Occupied Housing
11
Estimated Market Value of New Project:
Class Rate on first $76,000 of Market Value
Class Rate Markel Value,. $76,000
Estimaled Tax Capacity:
Estimated Taxes:
Assessor's Market Value/unit
Taxes/unit
Taxes do not include market value taxes, which are not captured by TIF
Assumes 5 houses completed construction in 2002 and remainder in 2003
1,320,000
1.00%
1.00%
13,200
19,253
$120,000.00
$1,750.31
Pay 04
Pay 04
Page 1 sfhousing. TlF30
CITY OF MONTICELLO, MINNESOTA
5122102
.
Base Project Captured Sem~Annual Admin HRA Sem~Annual Local Years
PERIOD BEGINNING Tax Tax Tax Gross Tax at at Net Tax Cumul. NPV Match at Of PERIOD ENDING
Yrs. Mth. Yr. Capacity Capacity Caoacity Increment 10.25% 0.00/0 Increment 7.00% 0.00% Increment Yrs. Mth. Yr.
0.0 08-01 2002 2,123 2,123 0 0 0 0 0 0.0 0.50 02-01 2003
0.50 02-01 2003 2,123 2,123 0 0 0 0 0 0.0 1.00 08-01 2003
1.00 08-01 2003 0 0 0 0 0.0 1,50 02-01 2004
1,50 02-01 2004 2,123 6,600 4,477 3,265 -335 0 2,930 2,554 0 0.5 2.00 08-01 2004
2.00 08.01 2004 3,265 .335 0 2,930 5,021 0 1.0 2.50 02.01 2005
2.50 02-01 2005 2,123 13,200 11,077 8,078 -828 0 7,250 10,919 0 1.5 3.00 08-01 2005
3.00 08.01 2005 8,078 -828 0 7,250 16,618 0 2.0 3.50 02-01 2006
3.50 02.01 2006 2,123 13,454 11,341 8,271 -848 0 7,423 22,255 0 2.5 4.00 08-01 2006
4.00 06-01 2006 8,271 -848 0 7,423 27,702 0 3.0 4.50 02-01 2007
4,50 02.01 2007 2,123 13,733 11,610 8,467 -868 0 7,599 33,089 0 3.5 5.00 08-01 2007
5.00 08-01 2007 8,467 -868 0 7,599 38,294 0 4.0 5.50 02-01 2008
5.50 02-01 2008 2,123 14,008 11,885 8,668 -888 0 7,779 43,442 0 4.5 6,00 08-01 2008
6,00 08-01 2008 8,668 -888 0 7,779 48,416 0 5.0 6.50 02-01 2009
6,50 02-01 2009 2,123 14,288 12,165 8,872 -909 0 7,963 53,336 0 5.5 7.00 08-01 2009
7.00 08-01 2009 8,872 -909 0 7,963 58,088 0 6.0 7.50 02-01 2010
7.50 02-01 2010 2,123 14,574 12,451 9,080 -931 0 8,150 62,788 0 6.5 8,00 08-01 2010
8,00 08-01 2010 9,080 .931 0 8,150 67,329 0 7.0 8.50 02-01 2011
8.50 02-01 2011 2,123 14,865 12,742 9,293 -953 0 8,340 71,819 0 7.5 9.00 08-01 2011
9,00 08.01 2011 9,293 -953 0 8,340 76,158 0 8.0 9.50 02-01 2012
9.50 02-01 2012 2,123 15,163 13,040 9,510 -975 0 8,535 80,447 0 8.5 10,00 08-01 2012
10.00 08.01 2012 9,510 -975 0 8,535 84,592 0 9,0 10.50 02-01 2013
10.50 02-01 2013 2,123 15,466 13,343 9,731 -997 0 8,733 88,689 0 9,5 11.00 08-01 2013
11.00 08-01 2013 9,731 -997 0 8,733 92,648 0 10,0 11.50 02-01 2014
11.50 02.01 2014 2,123 15,775 13,652 9,956 -1,021 0 8,936 96,561 0 10,5 12.00 08-01 2014
12.00 08-01 2014 9,956 -1,021 0 8,936 100,342 0 11,0 12.50 02-01 2015
12.50 02-01 2015 2,123 16,091 13,968 10,187 -1,044 0 9,142 104,080 0 11.5 13.00 08-01 2015
13.00 08-01 2015 10,187 -1,044 0 9,142 107,692 0 12,0 13.50 02.01 2016
13.50 02-01 2016 2,123 16,413 14,290 10,421 -1,068 0 9,353 111,261 0 12,5 14.00 08-01 2016
14.00 08-01 2016 10,421 -1,068 0 9,353 114,710 0 13.0 14.50 02-01 2017
14.50 02-01 2017 2,123 16,741 14,618 10,661 -1,093 0 9,568 118,119 0 13.5 15.00 08-01 2017
15,00 08-01 2017 10,661 -1,093 0 9,568 121,413 0 14.0 15.50 02-01 2018
15.50 02-01 2018 2,123 17,076 14,953 10,905 .1,118 0 9,787 124,668 0 14.5 16,00 08-01 2018
16.00 08-01 2018' 10,905 -1,118 0 9,787 127,813 0 15.0 16.50 02-01 2019
16.50 02-01 2019 2,123 17,417 15,294 11,154 -1,143 0 10,011 130,921 0 15.5 17.00 08-01 2019
17.00 08-01 2019 11,154 -1,143 0 10,011 133,924 0 16.0 17.50 02-01 2020
17.50 02-01 2020 2,123 17,765 15,642 11,408 -1,169 0 10,239 136,891 0 16.5 18,00 08-01 2020
18,00 08-01 2020 11,408 .1,169 0 10,239 139,758 0 17.0 18.50 02-01 2021
18,50 02-01 2021 2,123 18,121 15,998 11,667 -1,196 0 10,471 142,592 0 17.5 19,00 08-01 2021
19.00 06-01 2021 11,667 -1,196 0 10,471 145,329 0 18.0 19.50 02-01 2022
19.50 02-01 2022 2,123 18,483 16,360 11,931 .1,223 0 10,708 146,033 0 18.5 20.00 06-01 2022
20,00 06-01 2022 11,931 -1,223 0 10,708 150,647 0 19.0 20.50 02-01 2023
20.50 02.01 2023 2,123 18,653 16,730 12,201 .1,251 0 10,950 153,229 0 19.5 21.00 08-01 2023
21.00 08-01 2023 12,201 -1,251 0 10,950 155,723 0 20.0 21.50 02-01 2024
21.50 02-01 2024 2,123 19,230 17,107 12,476 -1,279 0 11,197 158,188 0 20.5 22.00 08-01 2024
22.00 08-01 2024 12,476 -1,279 0 11,197 160,569 0 21,0 22.50 02-01 2025
22.50 02.01 2025 2,123 19,615 17,492 12,756 -1,308 0 11,449 162,921 0 21.5 23.00 06-01 2025
23,00 08-01 2025 12,756 -1,308 0 11,449 165,194 0 22,0 23.50 02-01 2026
23,50 02-01 2026 2,123 20,007 17,684 13,043 -1,337 0 11,706 167,439 0 22,5 24.00 08-01 2026
24.00 08-01 2026 13,043 .1,337 0 11,706 169,609 0 23,0 24.50 02-01 2027
24.50 02.01 2027 2,123 20,407 18,284 13,334 -1,367 0 11,968 171,751 0 23.5 25,00 08-01 2027
25.00 08-01 2027 13,334 -1,367 0 11,968 173,822 0 24.0 25.50 02-01 2028
25.50 02-01 2028 2,123 20,815 18,692 13,632 -1,397 0 12,235 175,667 0 24,5 26.00 08-01 2026
26.00 08-01 2028 13,632 -1,397 0 12,235 177,843 0 25.0 26.50 02.01 2029
26.50 02-01 2029 2,123 21,231 19,108 13,936 -1,428 0 12,507 179,794 0 25.5 27.00 08-01 2029
27.00 08-01 2029 13,936 -1,428 0 12,507 181,680 0 26,0 27.50 02-01 2030
Totals 545,807 -55,945 0 489,862 0
Present Values 202,429 -20,749 0 181,660
Pmjection. ara estimates based upon ..pe."od first yoar of inctement, mar\<et vaiues, tax rates, etc., all of which ara subject to change.
TAX INCREMENT CASH FLOW
.
.
page 2 sfhouslng,TlF30
Ehlers and Assocjate~. Inc.
02 03:33p
Central HN Housing Ptnsp
320 25~-~~:;1U
r--
Revised Monticello Numbers
5/15/02
.
Aca uisition/Demolition
5 properties
Legal at $500 ea.
Title Insurance
Filing Fees
Acquisition closings
Demolition
Platting & abstracts
Site Preparation
Permits & Fees
Real Estate Taxes
Financing
Insurance
Contingency
seller closing costs
Developer Fee
Subtotal
Total Cost
329.000
7.500
1,750
750
3000
20,000
6,000
77,000
42.750
2.750
12,000
500
25.000
11.000
25.000
564,000
New Construction 11 homes
Subtotal
Total cost Acquisition/new construction
957.000
957,000
1,521,000
Sources
Tax Increment Financing
Permits & Fees
Land Donation. city
Employer
Deferred Developer Fee
Reimbursement to City for lot
125,000
$42.750
$25.000
$20,000
$212.750
$25,000
$20,000
.
.
.
.
.
HRA Agenda - 6/05/02
6.
Consideration to review and discuss conflict of interest as defined in the Minnesota
Statutorv by BRA Attorney.
A. Reference and backuround:
Periodically and with a change in commissioners. the HRA Attorney suggests a review
and discussion of the Minnesota Statutory governing conflict of interest and its
application to HRA commissioners. Attorney Dan Grecnsweig will lead this educational
discussion.. Also, he will touch on the fact that Monticello is yet a small community and
the importance of public perception as it relates to the Authority.
No action is required on this item.
Copy from the Statutes and excerpt from Contract for Private Redevelopment.
.
990
with incomes not greater than lW percent of median income for the metropolitan st f .
area or nonmetropolitan county, and are located within any city or town, the author~ Istlcal
notify the goveming body ofthe eity Ot town in writing ofthe toeation of the housing ~hott
or hOUSlllg development project. It the govermng body huls to take action on a housin Je~t
ed m housing development pmject in" wtiting whieh",t>; forth it>; t",,,,,ns fm the',"""
wi thi n 30 days, the. goveming budy is eoosid"ed to have appm"d the loeation ofthe:'on
mg pmJed ot hoosmg deve lopmeotpm,ed tot pncpo",s of any .s pec tal ot gene"llaw req":.
lng local approval ot the locatlon ot housmg projects and housmg development proJ'ect
I k b 1 . h ., . s un-
(erta en Y county or mu tlCounty aut ontles.
History: 1987 c 291 s 7; 1989 c 328 art 3 s 4
469.UU7 ECONOMIC DEVELOPMENT
469.008 EFFECT UPON CITY HOUSING AND REDEVELOPMENT AUTHORI.
TIES.
. . Nothil~g in sections 469.004 to 469.0.08 shall alter or impa.ir the powers and obligations
ot city hot~smg and redevelopment authontles created u~der Mmnes.ota Statut~s 1969, chap-
ter 462. pnor to June 8. 1971, nor shall the area of operation of such city authonty be included
within the area of operation of a county or multicounty authority created pursuant to sections
469.004 to.469.008. With t?e con.sent of the board of commissioners of a city authority and
the govem1l1g body of the City, a CIty authonty may become a part of a county or multicounty
authority upon assumption by the authority of the obligations of the city authority.
History: 1987 c 291 s 8
I;:.
469.009 CONFLICT 01<' INTEREST; PENALTIES FOR FAILURE TO DISCLOSE.
Subdivision 1. Disclosure. Before taking an action or making a decision which could
substantially affect the commissioner's or an employee's financial interests or those of an
organization with which the commissioner or an employee is associated, a cornmissioneror
employee of an authority shall (a) prepare a written statement describing the matter requiring
action or decision and the nature of the potential conflict of interest and (b) submit the state-
ment to the commissioners of the authority. The disclosure shall be entered upon the minutes
of the authority at its next meeting. The disclosure statement must be submitted no later than
one week after the employee or commissioner becomes aware of the potential conflict of in-
terest. However, no disclosure statement is required if the effect on the commissioner or em-
ployee ofthe decision or act will be no greater than on other members of the businesS, profes-
sion or occupation or if the effect on the organization with which the commissioner or em-
ployee is affiliated is indirect, remote, and insubstantial. A potential conflict of interest is
present if the commissioner or employee knows or has reason to know that the organization
with which the commissioner or employee is affiliated is or is reasonably likely to become a
participant in a project or development which will be affected by the action or decision. Any
individual who knowingly fails to submit a statement required by this subdivision or submits
a statement which the individual knows contains false information or omits required in-
formation is guilty of a grosS misdemeanor.
Subd, 2. Effect of disclosure.l f an employee has a potential conflict of interest, the em-
ployee's superior shall immediately assign the matter to another employee who does not
have a potential conflict of interest. A commissioner who has a potential conflict of interest
shall not attempt to influence an employee in any matter related to the action or decision in
question, shall not take part in the action or decision, and shall not be counted toward a quo-
rum during the portion of any meeting of the authority in which the action or decision is to be
considered. Any individual who knowingly violates this subdivision is guilty of a groSS mis-
demeanor.
Subcl. 3. Conflicts forbidden. A commissioner or employee of an authority who knOW-
ingly takes patt in any manner in making any sale, lease, or contract in the commissioner's.or
emptoyee" offiei,l eapacity in whieh the eommi"ion" '" emptoy" hO' a pe"onID finan",,1
interest is guilty of a gross misdemeanor.
Subd. 4. Agent or attorney. For one year after termination of a position as a commis-
sioner or employee of an authority, no former commissioner or former employee of an aU-
thority shall appear personally before any court or governmental department or agency as
99\
ttorney for anyone oth'
llt or a . t
age. request for rul1ng or 0
Plicat~OI1, rrest or other partictl
tlon a .,
cusa . h respect \0 which the cC
and wlt'olurnissioner or emp\
. nasac ". h
510 the termination or t at
oor to. W'
P subd, 5. Limitations. _ It
'd .f'n'incial assistance or fln<\
<II e I , . . e'
v I yee or COll1mlSSlon I
an emp 0
than once. . .
. Subd. 6. In,l~~ctlOn. 'T~~
the prOVISions ot thiS
enforce . (
Ilistory: 1987 c 2918 :J
469.010 RE~OVAl"; llEA
for ineffICiencY or negl.
dby the (Joveming body
move ~ d' -
the charges at least ten ay~ ~
to be heard in perso~ or b'y ;
. 'sioner, pendrng fln,1
commlS If' . f I
the commissioner. . It IS o.
sioner shan imme~latelY h~,
ord of the proceedings. to~
office of the clerk.
llistory:1987 c 291 ~
469.011 AVTllORl'fY (
Subdivision l. po.w~r
be vested in its commlSSIC
quorum for all purpose~.
Subd. 2. Officers; t
among its commissio~ers
that it deemS appropnate,
Subd, 3. l\1.eeting<
except that meetings?\ a I
of the area of operatIon c
authorized to undertake
Subd. 4. Expense~
penses, includin~ travc\1
sioner may be paid up to
Commissioners who arl
subdivisions of the sta~:
compensation or benet'
on the board. Commls~
particular day only il' t'
day. Cornmissione~s w
cal subdivisions ot the
the expenses are reitll
History: 1987 (.
469.012 POWERS
Subdivision I. '
politic and shaH haY
tions 469.00 I to ,:\.1,'
ments is limited to \
following powers \
.
990
lStical
'I shall
Jroject
~ proj-
action
hous-
equir-
:ts Un-
ORI.
ltions
:hap-
uded
tions
ii and
lunty
lSE.
Juld
,fa.
~ro
ring
ate-
Ites
han
in-
:ro-
es-
ro-
r is
on
ea
ny
its
n-
~1-
ot
5t
n
1-
e
.
I,CONOIVllC DEVF:l,OPMENT 469.U12
agent or attorney f~)r any.one other than the auth?rity in connection with any proceeding, ap-
plication, request for rulmg or other detelTI1l0atlOn, contract, clatm, controvt:rsy, charge, ac-
cusation, arrest, or other particular matter in which the authority is substantially interested,
and with respect to which the commissioner or employee took any action or made any deci-
sion as a commissioner or employce of the authority at any time within a period of one year
prior to the termination of that position.
Subd. 5, Limitations. With respect to each program established by the authority to pro-
vide financial assistance or financing for real property other than rental assistance programs,
an employee or commissioner may recei ve such financial assistance or financing not more
than once.
Subd. 6. Injunction. The county attorncy may seek an injunction in the district court to
enforce the provisions of this section.
History: 1987 c 29/ s 9
469.010 REMOVAL; HEARING; NOTICE.
For inefficiency or neglect of duty, or misconduct in office, a commissioner may be re-
moved by the governing body of the municipality. The commissioner must be given a copy of
the charges at least ten days prior to a hearing at which the commissioner has an opportunity
to be heard in person or by counsel. When charges in writing have been preferred against a
coriunissioner, pending final action thereon the governing body may temporarily suspend
the commissioner. If it is found that those charges have not been substantiated, the commis-
sioner shall immediately be reinstated in office. When any commissioner is removed, a rec-
ord of the proceedings, together with the charges and findings thereon, shall be filed in the
office of the clerk.
History: 1987 c 291 s 10
469.011 AUTHORITY OPERATIONS.
Subdivision I. Powers in commissioners; quorum. The powers of each authority shall
be vested in its commissioners in office at any time; a m<~jority of whom shall constitute a
quorum for all purposes.
Subd. 2. Officers; bylaws. Each authority shall select a chair and a secretary from
among its cOlIlmissioners and shall adopt by laws and other rules for the conduct of its affairs
that it deems appropriate.
Subd. 3. Meetings. The regular meetings of an authority shall be held in a fixed place,
except that meetings of a multicounty authority may be held anywhere within the boundaries
of the area of operation of the authority or within any additional area where the authority is
authorized to undertake a project, and shall be open to the public.
Subd. 4. Expenses; compensation. Each commissioner may receive necessary ex-
p~nses, including traveling expenses, incurred in the performance of duties. Each commis-
Sioner may be paid up to $55 for attending each regular and special meeting of the authority.
Commissioners who are full-time state employees or full-time employees of the political
Subdivisions of the state may not receive the claily payment, but they may suffer no loss in
compensation or benefits from the state or a political subdivision as a result of their service
on the board. Commissioners who are elected officials may receive Ihe daily payment for a
Particular day only if they do not receive any other daily payment for public service on that
day. Commissioners who are full-time state employees or full-time employees of the politi-
cal subdivisions of the state may receive the expenses provided for in this subdivision unless
the eXpenses are reimbursed by another source.
History: 1987 c 29/ s 11; /992 c 376 art 3 s 2; /993 c 369 s 144
469.012 POWERS, DUTIES.
. .Subdivision I. Schedule of powers. An authority shall be a public body corporate and
rOlnlc ancl shall have all the powers necessary or convenient to carry out the purposes of sec-
IOns 469.00 I to 469.047, except that the power to levy and collect taxes or special assess-
rents ~s limited to the power provided in sections 469.027 to 469.033. its powers include the
ollowlng powers in addition to others granted in sections 469'<)() I to 469.047:
ARTICLE X
.
Additional Provisions
Section 10.1. Conflict of Inlerest~: Authority RepresentativesNot Individually LiabI~. The
Authority and the Developer, to the best of their respective knowledge, represent and agree that no
member, otTiciaL or employee of the Authority shall have any personal interest, direct or indirect, in
the Agreement. nor shall any such member, official, or employee participate in any decision relating
to the Agreement which affects his or her personal interests or the interests of any corporation,
partnership, or association in which he or she is directly or indirectly interested. No member,
official, or employee of the Authority shall be personally liable to the Developer, or any successor
in interest, in the event of any deh1ult or breach by the Authority or the County or for any amount
which may become due to the Developer or successor or on any obligations under the terms of the
Agreement.
Section 10.2. Equal t;r!!Q!.QYTnent Ol1portuni!y. The Developer, for itself and its successors
and assigns, agrees that during the construction and operation of the Minimum Improvements
provided for in the Agreement it will comply with all applicable federal, state, and local equal
employment and non~diserimination laws and regulations.
.
Section 10.3. Restric;t)ons 0)1 USe;. The Developer agrees that, during the term of this
Agreement. the Developer shall not unlawfully discriminate upon the basis of race, color, creed,
sex. national origin, or any other prohibited basis in the sale, lease, or rental or in the use or
occupancy of the Development Property or any improvements erected or to be erected thereon, or
any part thereof, and shall devote the Development Property to the operation of the Minimum
I mprovements as owner-occupied townhouses.
Section lOA. Provisions Nqt Merged With Deed. None of the provisions of this Agreement
are intended to or shall be merged by reason of any deed transferring any interest in the
Development Property and any such deed shall not be deemed to affect or impair the provisions and
covenants of this Agreement.
Section 10.5. Yitles ofArticIes andSectiOl}~. Any titles of the several parts, Articles, and
Sections of the Agreement are inserted for convenience of reference only and shall be disregarded in
construing or interpreting any of its provisions.
Section 10.6. Notices and Demand~. Except as otherwise expressly provided in this
Agreement. a notice, demand. or other communication under the Agreement by either party to the
other shall be surliciently given or delivered if it is dispatched by registered or certified mail,
postage prepaid. return receipt requested, or delivered personally; and
(a) in the case of the Developer. is addressed to or deli vered personally to the Developer
at 941 NE I--lillwind Road, Suite 300, Fridley. MN 55432, Attention: Jennifer I,. WasowiC7:; and
.
(b)
in the case of" the Authority. is addressed to or delivered personally to the Authority
().J(j-207X')~\.)
MNI9o-'n
26
.
.
.
HRA Agenda - 6/05/02
7.
Consideration to authorize placement of an economic development ad in the 2003
Community Guide. Discover Monticello. and/or American Legion Display Board,
A. Reference and backe:round:
In the last few weeks, I've been approached by three individuals selling advertisement in
an upcoming journal or display board. The BRA is asked to review and consider
authorizing the expenditure since the HRA originally requested dollars from the City
Council on behalf of the Marketing Subcommittee. The ad(s) would market the City of
Monticello for economic development.
I. Community Guide 2003 - Offered by the Monticello Times. 2002 full-page ad
paid for by Marketing Subcommittee and Chamber of Commerce ($587.50 each).
See attached 2n03 offer and 2002 ad. Price the same as 2002, $1175. (This will
be on the next Chamber Board's agenda for consideration to split).
2. Discover Monticello - Offered by Design for Print and MAJIRS Advertising &
Design. Example of journal at meeting. Price listing attached. Full-page ad in 2-
color $525.
..
-, .
American Legion Display Board - Frank Tillery - 952-848-0948. 8X lOad $295
per year. 6X8 ad $185 per year. 60 spaces availahle.
The halance of the Marketing Account is approximately $36,000 after the estimated golf
event expenditures. Questions: Who is the targeted audience of the journal or display?
llow or whom is the journal distributed?
'rhe Community Guide is displayed at City Hall, local banks, Chamber, and given to new
comers. The Guide is also mailed along with husiness information pack mailed by the
city. The Discover Monticello and American Legion are tirst time requests.
B. Alternative Action:
I. A motion authorizing placement of an economic development ad in the 2003
Community Guide at a cost of____, in Discover Minnesota at a cost of
__ ______. and/or the American Legion Display Board at a cost of
2. A motion to deny authorizing placement of an economic development ad.
HRA Agenda - 6/05/02
.
c.
Recommendation:
The Community Guide and Discover Minnesota are journals which are distributed within
the community by businesses, City Hall, and the Chamber of Commerce Office. I'm not
sure if the display board reaches our desired audience.
D. Supporting Data:
Community Guide offer and 2002 ad and Discover Monticello price list.
.
.
2
.
.
.
THE MONTICELLO TIMES & SHOPPER
Monticello Times, Inc. . publisher of the Monticello Times and Shopper · Donald Q. Smith, Editor and publisher
116 East River Street - Box 420. Monticello MN 55362-0420. E_mail_monticellotimes@monticellotimes.com
Phone 763-295-3131 · Fax 763-295-3080 · Home Page - http://www.monticellotimes.com
Community Guide 2003 Early Bird Advertising Offer
We're gearing up for our annual Monticello Area Community Guide.
The guide, now in its 11th year, will be distributed in early September.
Once again, we are asking community residents in Monticello, Big
Lake and Becker to submit full color photos for possible use in the guide.
We had great success last year using submitted photos on the front of the
guide as well as several full color photos inside. We already have some
outstanding photography for the 2003 guide to illustrate the natural beauty of
our area.
As a previous community guide advertiser, we at the Monticello
Times would like to offer you an opportunity to be a part of Community
Guide 2003 at last year's prices. We want to offer you the chance for
savings, as we are expecting a rate hike from our printer again this year. We
are only requiring that you advertise at the same level or higher as your last
ad. This year's guide will be filled with in-depth stories, excellent photos by
our readers as well as the ever-valuable listings for each community. This
early bird offer is good through June 15, 2002.
Thanks for your time. We appreciate doing business with you. Here's
what you did last time in the guide:
Ad Size: \ f CL~.e Price:4f \ \ 1S"
(Tear s eet otfJad attached)
Business Name/Representative C ~ co'; ,ll<W-.-lL~U~ - T ~
Date " ~
Monticello Times/Representative
Date
I,
1-7'1
,
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Make you. move
· to Monticello...
Twin City Die Castings did
"We have found your city staff to have been extremely helpful,
most resourceful and committed to the success of both the project
and Twin City Die castings Company." -Jack Jarrard, project manager,
Olson ceneral contractors, Inc.
"Working with the Monticello Economic and Industrial
Development people has been a very satisfying experience. They
have been extremely helpful and focused on the success of the
project, as well as helping us secure the necessary financing. .
They've been a great team to work with." -DOuglas D. Harmon,
Vice-president and CEO, TWin City Die castings
. Monticello Industrial Development Committee
Ollie Koropchak, City of Monticello
Economic Development Director
763-295-2711
www.ci.monticello.mn.us
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MC100.01
General
Monticello HRA
505 Walnut Avenue, Suite 1
Monticello, MN 55362
May 10, 2002
Invoice # 19446
Hours Amount
4/3/02 MTR Cales for older districts
MTR Runs $2m and $2.6m manufacturing
4/23/02 MTR TIF run emhp
1.00
1.00
0.50
125.00
125.00
62.50
2.50 $312.50
Total
-$312.50
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Professional Services
Total Due This Month:
Status of Account:
Current
$312.50
30 Days
$0.00
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60 Days
$0.00
90 Days
$0.00
120+ Days
$0.00
PLEASE KEEP WHITE COPY FOR YOUR FILE AND REMIT PINK COPY WITH PA YMENT TO:
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EHLERS
& ASSOCIATES INC
3060 Centre Pointe Drive
Roseville, MN 55113-1105
651.697.8500
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City d Moriticello
Accounts Payable
505 Walnut Street, Suite 1
Montieello, MN 55362
Through April 30, 2002
MN 190-00001 General
Kennedy & Graven, Chartered
200 South Sixth Street
Suite 470
Minneapolis, MN 55402
(612) 337-9300
May 16, 2002
Statement No. 51928
MN190-00089 Acquisition of 218 Front StreeUQ'Connor
MN190-00097 TIF 1~29
MN190-00098 Hans Hagen TIF Contract
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Total Current Billing:
I declare, under penalty of law, that this
account, claim or demand is just and eorreet
and that no part of it has been paid.
s;gn~LM
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60.00
86.91
840.00
133.50
1,120.41
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City of Monticello
Accounts Payable
505 Walnut Street. Suite 1
Monticello. MN 55362
MN190-00001
General
Kennedy & Graven, Chartered
200 South Sixth Street
Suite 470
Minneapolis, MN 55402
(612) 337-9300
41-1225694
May 16. 2002
Invoice # 51928
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Through April 30. 2002
For All Legal Services As Follows:
4/8/2002 DJG Telephone conference with Q. Koropchak re: industrial
financing options
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Total Services:
Hours
0.40
$
Amount
60.00
60.00
Total Services and Disbursements: $ 60.00
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Page: 2
Kennedy & Graven, Chartered
200 South Sixth Street
Suite 470
Minheapolis, MN 55402
City of Monticello
April 30, 2002
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MN190-00089 Acquisition of 218 Front Street/O'Connor
Through April 30, 2002
For All Legal Services As Follows:
4/1/2002 PES Draft Wright County Recorder letter
Hours
0.20
0.30
4/1/2002
RJL Review and execute discharge of notice of lis pendens;
revise and finalize final certificate and letter to district
court administrator
Total Services:
$
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For All Disbursements As Follows:
4/1/2002
Photocopies
Postage
Wright County District Court Administrator; Obtain a
certified copy of final certificate
Total Disbursements:
Amount
19.00
51.00
70.00
5.20
1.71
10.00
$
16.91
Total Services and Disbursements: $ 86.91
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Page: 3
Kennedy & Graven, Chartered
200 South Sixth Street
Suite 470
Minneapolis, MN 55402
City of Monticello
April 30, 2002
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MN190-00097
TIF 1-29
Through April 30, 2002
For All Legal Services As Follows: Hours Amount
4/15/2002 DJG Telephone conference with O. Koropchak and Mike Cyr 0.50 75.00
regarding financing of land acquisition
4/17/2002 DJG Telephone conference with O. Koropchak and telephone 0.40 60.00
conference with M. Cyr regarding terms of land sale
4/18/2002 DJG Amend contract for private development and draft 2.40 360.00
purchase agreement
4/19/2002 DJG Draft purchase agreement for city property 2.30 345.00
. Total Services: $ 840.00
Total Services and Disbursements: $
840.00
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Page: 4
Kennedy & Graven, Chartered
200 South Sixth Street
Suite 470
Minneapolis, MN 55402
City of Monticello
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April 30, 2002
MN 190-00098
Hans Hagen TIF Contract
Through April 30, 2002
For All Legal Services As Follows:
4/4/2002 DJG Revise contract for private development
Hours
0.70
4141-2002
CBR fntraoffice-conferencei- phone--call to attorne-yfor developer 0.30
Total Services:
$
.
Total Services and Disbursements: $
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Amount
105.00
28.50
133.50
133.50
AcquisitiOrl
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Conworth, Inc.
4725 Excelsior Boulevard
Suite #200
Minneapolis, MN 55416
Ollie Koropchak
Executive Director
Monticello Housing & Redevelopment Authority
Monticello City Hall
505 Walnut St., Suite 1
Monticello, MN 55326-8831
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APRIL SERVICES ~ MONTICELLO PROJECT
O'Connor
Review file and information from claimant.
Schedule meeting with claimant.
Meet with claimant and his attorney regarding claim.
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TOT AL HOURS EXPENDED
AT $70.00 PER HOUR
3.50
$245.00
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ACQUISITION AND RELOCATION
Kennedy & Graven, Chartered
200 South Sixth Street
Suite 470
Minneapolis, MN 55402
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May 03, 2002
City of Monticello
Past Due
Accounts Payable
505 Walnut Street, Suite 1 \").1'"\ . (') .
Monticello, MN 55362 c:; f"\. ~ "u · t..Yf'.-I
Reminder Notice
MN190-00097
TIF 1-29
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Date Stmn No. Amount Paid Balance L~
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12/12/2001 49722 40.50 0.00 40.50 -
1/17/2002 50307 2,497.50 2,497.50 0.00
1/31/2002 50307 -2,497.50 0.00 0.00
. 3/21/2002 51083 1 ,395.00 1 ,395.00 0.00 o~'o. S~,_b"""
4/23/2002 51657 115.50 0.00 115.50
4/24/2002 51083 -1,395.00 0.00 0.00
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Total Due: $
156.00
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HRA Agenda - 6/5/02
9.
Consideration of Executive Director's Report.
a) Call fi.w special HRA meeting - Monday, June 17,6:00 p.m. for the purpose to hold a
public hearing fi.)r the disposition of land to Hans llagen Homes. I fans would like to
close on the property so they can begin selling the homes. A public hearing notice needs
to be pub] ished at least 10 days prior.
b) Production Stmnping, Inc. - I have a meeting with Lcs and Jeannie Wunn on Monday,
June 3, 2002, relative to the Monticello proposal. Irthey commit to a Monticello site
selection on Monday, the liRA will be asked to approve entering into a Preliminary
Development Agreement. Pending their and UMC time frame for commencement of
construction, the HRA may need to meet Wednesday, June 26, to adopt the TIF
resolutions.
c) Lake Tool building - I'm working with a local industrial business looking to purchase
the building. Would be a win/win situation for both businesses and the I IRA. However,
need to check with attorney relative to HRA Contract for assignment with the tax
increment deficiency clause. Would he 4-9 new jobs. Looking at EDA loan.
d) Genereux Fine Wood Products - Looking at EDA loan for purchase of new machinery.
e) Company looking to build 40,000 sq ft food processing building. 30 new jobs.
t) Planning Commission meeting relative to Comp Plan. Opportunity for HRA to give
comments and facts. Wednesday, June 12,7:00 p.m., Mississippi RoolT\.
g) Amoco site _ Some remaining environmental issues. Advised consultant of the need to
spend dollars prior to June 30, 2002, to meet 5-year rule for pay-as-you-go. Thereafter
only 25% tax increment for pooling.
h) McComb Study - I laven't heard anything. Executed agreement with the addition for
the study to be completed by June 21 fi.w a June 26 review by the I IRA.
i) Chamber Golf Outing ~ The Marketing Subcommittee had 22 golfers at the outing.
Only about 12 for brunch. Some good developers like Kraus Anderson, Streeter Group,
Olson General Contractors, ete. People had a good time and found the update about
Broadway and proposed interchange at 1-94 & Cty 18 of interest.
j) Industrial Banquet ~ Tuesday June II, Monte Club. You should have received your
invitation hom the Chamber. If not let me know. Guest speaker: Norm Coleman. I've
invited as guest of the Marketing Subcommittee, UMC and Production Stamping.
k) O'Connor - Just received a copy of the residential and business relocation claims from
O'Connor via Ken Helvey, Relocation Consultant. Request for $3,331.52 residential
relocation expenses and $17,960.50 business fixed payment costs. Checking if liable for
business expense since operated as an illegal business within a CCD. More at HRA
meeting.
I) Couple of inquiry about leasing H-Window and Right Choice buildings. Intlxl11ed
owners or real estate broker of property tracking site through Dept of Trade and
Economic Development at no cost.
HRE Visits - Scheduled to visit Electro Industries on Monday at I :30 p.m.
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FROM THE OFFICE OF
KENNETH R. STREETER
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April 30.2002
MONTICELLO
Mr. Doug Harmon
'Twin City Die Castings Company
1070 SE 33,d Avenue
Minneapolis. MN 55414
Re: Contract for Private Development By and Between Twin City Die Castings Company. the
I-lousing ancl Redevelopment Authority. and the City of Monticello elated October 25, 1999, and
amendecl December 6, 2000.
Dear Doug:
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According to ARTICLE III, Section 3.5, Financing of Land Acquisition and Site Improvement
Costs, (0 page 8 of the Contract: At least 30 days before becom ing entitled to receive any
payment hereunder. the Developer must submit to the Authority a payment request certificate
signed by its duly authorized representative stating: (i) that the Developer has paid Land
Acquisition Costs in at least the amount of $21 0,000 ancl Site Improvement Costs in at least the
amount of $15,000; and (iii) .......................
Please provide evidence of satisfaction for the payment of land acquisition costs and site
improvement costs, prior to the semi-annual installment payable August I, 2002.
Should you have questions, please call me at 763-271-3208. Thanks for attending to this matter.
Sincerely,
HOUSING AND REDEVELOPMENT AUTI--IORrrV
IN AND rOR TI IE CITV OF MONTICELLO, MINNESOTA
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Ollie Koropchak
Executive Director
c: TIF File
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"""-'--~--Mon(i;;~lI~"'(:Tty Hl;lI.-sl:is'w-;;,;;;:;t'"Street, Suit~Monticell~:MN 55362-8831-: (763) 295-2711 . F~x: (763) 29S:4404~~---~-
Office of Public Works, 909 Golf Course Rd., Monticello. MN 55362 . (763) 295-3170. Fax: (763) 271-3272