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HRA Agenda 08-07-2002 . . . HRA WORKSHOP Wednesday, August 7, 2002 5:00 p.m. Bridge Room, 505 Walnut Street Subject: To review the revised numbers within the McComb Development Feasibility Financial Analysis with Mark Ruff, Ehlers & Associates, for input and to determine level of TIF assistance for redevelopment of Block 52. (See attached HRA Agenda Item 5.) . AGENDA MONTICELLO HOUSING AND REDEVELOPMENT AOTHORITY Wednesday, August 7, 2002 - 6:00 p.m. 505 Walnut Street - Bridge Room Commissioners: Chair Hrad Barger, Vice Chair Steve Andrews, Darrin Lahr, Dan Frie, and Bill fair. Council Liaison: Brian Stumpf. Statl: Rick Wolfsteller, Ollie Koropchak, and Lori Kraemer. Guests: Mark Ruff, Ehlers & Associates, Inc. Jim McComb of McComb Group, Steve Johnson, and Kevin Heaton. 1 . Call to Order. 2. Consideration to approve the June 27, 2002, llRA minutes. 3. Consideration of adding or removing items from the agenda. 4. Consent Agenda. . A. Consideration to approve a resolution approving the decertification of Tax Increment District No. 1-14 of the City of Monticello. B. Consideration to approve a resolution adopting a modification of the Redevelopment Plan for Central Monticello Redevelopment Project No.1, establishing TI F District No. 1-31 within Central Monticello Redevelopment Project No.1, and adopting a TIF Plan therefor. (Applicant, lIMC) C. Consideration to approve entering into the Contract for Private Development among the HRA, the City, and Terrace & Mary Tomann Family Limited Partnership. D. Consideration to approve a resolution adopting a modification of the Redevelopment Plan for Central Monticello Redevelopment Project No.1, establishing TIF District No. 1-32 within Central Monticello Redevelopment Project No.1, and adopting a TIF Plan therefor. (Applicant, Production Stamping, Inc.) E. Consideration to approve entering into the Contract for Private Development among the lIRA, the City, and Wurm Partnership L.L.P. . 5. Consideration to review and discllss the revised McComb Development Feasibility financial Analysis, to hear proposed development plans by the Development Team, and to negotiate level of Tl F assistance for the proposed project. . . . 6. Consideration to authorize payment of HRA hills. 7. Consideration of Executive Director's Report. S. Committee Reports. 9. Other Business. 10. Adjournment. . . . SPECIAL MEETING MINUTES MONTICELLO HOlJSING AND REDEVEL()PMENT AlJTHORITY Thursday, June 27, 2002 - 6:00 p.m. 505 Walnut Street - Bridge Room Commissioners: Chair Brad Barger, Dan Frie, Bill Fair and Couneil Liaison Brian Stumpf Stall: Ollie Koropehak and Lori Kraemer Guests: Jim McComb, Steve Johnson, and Kevin Heaton I. Call to Order. CHAIR BRAD BARGER CAlLED THE MEETING TO ORDER AT 6: 10 P.M. AND DECLARED A QUORUM. 2. Consideration to approve the June 5 and June 18.2002. HRA minutes and June 17.2002. I-IRA Summary. A MOTION WAS MADE BY BILL FAIR TO APPROVE THE MINUTES OF 'THE JUNE 5, 2002 RI::GULAR !-IRA MEETING. THE JUNE 1 S, 2002 SPECIAL I-IRA MEETING. AND TI--IE SUMMARY OF THE JUNE 17.2002 MEETING. DAN FRIE SECONDED TlIE MOTION. MOTION CARRIED UNANIMOUSLY. ") _J, Consideration of adding: or removing items from the agenda. Koropchak removed Item 5 from the agenda and added eonsideration to authorize entering into a preliminary agreement with Product Stamping, This was placed as item 8. Koropchak also added a request by Kennedy & Graven. This was placed as item 13. 4. Consent Ag:enda. None 5. Consideration to approve awarding the bids for Front Street liRA Site Gradinl!. Koropchak and Bret Weiss. WSB & Associates. advised that hids were read at City l-Iall earlier that day. Weiss advised there were six bids ranging from $67,91 J to $1 OX.J26 with Veit & Company being the low bidder. Weiss stated these were all competitive bids and recommended awarding the bid to Veit & Company. Dan Frie asked if it was typical to award the bid to the lowest bidder or to consider local bidders. Weiss stated that typically they do award to the lowest bidder unless there are previous problems with that bidder. He also added that Veit & Company is considered a local business and that they do a lot of work in Monticello. liRA Minutes - 06/27/02 . A MOTION WAS MADE BY BILL FAIR A WARDINC TI-IE BID Fe)R TI-IE FRONT STREI.:T lIRA SrrE GRADING TO VEIT & COMPANY IN THE AMC)lJNT OF $67,913.00. DAN FRIE SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. It was stated by Koropehak that the work will begin after July 4,2002. 6. Consideration to review thc com leted McComb Develo )ment Feasibilit Block 52 and authorization to Dfoceed Jim McComb advised the I-lRA of how they arrived at their numbers. Koropchak questioned if the parking included landscaping and lighting and McComb stated landscaping and drive aisles, but no lighting. McComb advised of thc approximate costs depending on which parking alternative was chosen. . Fair askcd based on this analysis whcre do the owners go to talk realistically about the financing of the project and McComb stated he has referred them on to a mortgage broker. They have also been speaking with KKE regarding building/construction costs. Barger asked about square footages and types of uses, questioning if they have researched what types of uses would go in to this type of building and McComb stated that was not an authorized study at this time, but he does know of some types of uses. just not how many. He advised that professional uses would be on upper floors and that they would need to see how much interest this generates. stating there is interest now, but they feel it v,iill take a new building to generate. l-leaton stated thcy will be taking approximately 5.000 sq. ft. for their business to begin, and advised that they may start with conference rooms on the main level and small offices on the upper floor. Fair stated that he sees the I-IRA involvement as somewhat of a faci litator for the downtown revitalization plan and that this project could be a cornerstone. Barger asked if there were any relocation costs figured in this analysis and McComb stated they were not included. Fair felt it \vas beneficial for the partners to handle relocation costs versuS the lIRA getting involved. Johnson stated that the leases would be ending near the time the project would be started which would eliminate relocation costs, Frie asked ifphase 2 of the parking was in compliance with the city's ordinance and McComb advised that he did not check the ordinance, stating he used 3 1/2 spaces as a number for his analysis. . They asked Johnson if he knew of Springborg's intent /participation and he stated he believes that Springborg is open to talking but docs not know how much he will ask for his building. Also added that Poirer may be an interested party and that Froslie is not interestcd at this time. Fair asked McComb to clarify the development fee listed in his analysis and what is actually covered under that. McComb stated this is a standard part of the proforma, and that it includes such things as management of the project. Fair thought that a project of this magnitude needs to be kept moving along and closely monitored. 2 . . . I-IRA Minutes - 06/27/02 The liRA Celt that the numbers in this proposal were high and Johnson stated they agreecL adding that this is just at concept stage right now and they also need some questions answered. lIe also stated that they have been asking Koropchak how much funding is available and that this will help them determine what they ean proceed with. Johnson added that this is a projeet that will benefit the eity, businesses and schools as well. Barger advised that generally an applieant needs to go through the but-for test first, advising the H RA of what the costs are, showing where they are short, and the HRA will make a determination from there. Fric asked Johnson if what they are asking is that the I-IRA fi.nds a way to fill the gap of 1.3 million and they stated that is basically what they are looking for. Frie stated he was in favor of the concept and would like Mark Ruff of Ehlers and Associates to look at it and advise the HRA, stating he was in favor of the project if it is feasible. Koropchak advised that she had provided this same information to Grittman and Weiss_ Barger asked Koropchak if there had been any feedback from staff yet and she stated no. She also added that the gap shown isjust on the development of the property, not parking. Frie asked if they would still be responsible for relocation costs even if the leases were up. Koropehak also stated the dollars would have to be up-front not pay as you go. and advised that iCthe HRA does up-front they would need to make sure the project gets done at a specified time. Barger asked McComb why the land acquisition costs were included since they already own the land, and McComb advised that the land costs had to be included to make the rate of return numbers work. Fair stated he would like staff and Ehlers to review and come back with a report on feasibility. lIe would like a time table from the applicants as well. Johnson said that it would make sense to be have the building ready when the current leases expire, adding that it might make sense to start the project in 2003 and phase 2 in 2004, one year to build and move in. It \vas advised that money needs to be expended by August of 2004. It was discussed that they would like to see something from the applicants and city staff in 60 days, and they will discuss further at the August meeting. Johnson asked for specifics that they would I ike at that meeting and Fair stated perhaps getting input from financial people; Koropehak advised that the lenders wi II require a 800A) eommitment for funding. McComb stated that typically a broker would go out and get interested tenants vcrsus completing a market study. It was the consensus of the II RA members to get input from city staff and Mark Ruff as well as more information from the applicant including 11001' plans and lender inf()rmation. 7. Consideration to aplJrove authorization to enter into the Contract for Privatc Development amont!. the CMllP, the I-IRA, and the City. Koropchak updated the I-IRA on the status of the project and Fair asked when it was proposed to start. Koropchak advised that they needed to have 5 units completed by December of 2002 with the remaining 6 by Decembcr 2003. Staff is still reviewing the 3 HRA Minutes - 06/27/02 . design and it was noted that therc has becn a request to include bascments which is still being looked into. Koropchak stated there are <) detached units proposed along Minncsota Street and the 2 on 6lh Street arc to be twin homcs. She also advised that CMI-IP is requesting to have 3 tinished units this year instead of 5. A MOTION WAS MADE BY DAN FRIE TO APP[{,OVE AUI'I-IORIZATION TO ENTER INTO 'TlIE C()NTRACT FOR PRIV ATE DEVELOPMENT AMONCi THE I-IRA, TilE CITY, AND THE CENTRAL" MINNESOTA HOUSING PARTNERSI IIP, AMENDING TI-IE CON'fRACT '1'0 STATE THREE COMPLETED UNITS BY D[~CEMBER 2002. BILL FAIR SECC)NDED TI-IE MOTION. MOTION CARRH':D UNANIMOUSL Y. 8. Preliminary af!reement with Production Stamping,. Koropchak advised that Les Wunn of Production Stamping signed the preliminary agreement and provided a deposit. She is asking the HRA to authorize entering into this agreemcnt stating that Mark Ruff has advised this as well. A MOTION WAS MADE BY BILL FAIR AUTHORIZING THE HRA TO ENTER INTO A PRELIMINARY AGREEMENT FOR PRIV A Tl:: REDEVELOPMENT WITH PRODUCTION ST AMP]NG. DAN FRIE SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. . 9. Consideration of a request for a letter of explanation as to the decision of the liRA not to pay business movin!.! costs. Koropchak provided a copy of the check issued to Michael O'Connor and cover letter to Helvey as directed by the BRA, stating that Mr. Helvey has requested a letter from the HRA explaining why they elected not to pay for the business moving costs, adding that they may wish to appeal this. It was the conscnsus of the BRA to providc a letter stating that they would require proof that the busincss existed and if it did, that the business was operating at this location. It was discussed that if it is found that therc was a business and it was operating at this location. it was operating without thc necessary conditional use permit and was in violation of city ordinance as it was a noncomforming use in the Central Community District. The II RA advised Koropchak to prepare this letter. 10. Considcration to authorizc payment of 1-1 RA bills. A MC)TION WAS MADE BY DAN FRIE TO Alrrl-lORIZE PAYMENT OF THE HRA BILLS. BILL FAIR SI~CONDE[) TI-IE MOTION. MOTION CARR]ED UNANIMOUSLY. . 4 . . . HR.A Minutes - 06/27/02 11. Consideration of I':xecutive Director's Report. Koropchak provided the report adding a request from a real estate agent asking if the BRA would be interested in acquiring a substandard property on Linn Street. It was the consensUS of the members that they had no interest. 12. Comrnittee ReDorts. Nonc 13. Other Business. Koropchak stated that she had spoken with Dan Greenwich who asked if the lIRA would have any concern with him representing the lIRA. EDA and the City. The HRA had no conOict with this as long as they were not double billed. 14. Adiournment. A MOTION WAS MADE BY BRAD BARGER TO ADJOURN THE MEETING AT 8:00 P.M. DAN FRIE SECONDED THE MOTION. MOTION CARRIED UNANIMOUSL Y. Recordcr HRA Chair 5 . . . liRA Agenda - 8/07/02 4A. Consideration to ado t resolution decertif in TIF District No. 1-14 Suburban Manufacturing). A. Reference and Background: TIF District No. 1-14 was certified as a ten-year Economic District in 1992 to assist with the land write-down and site improvement costs for thc Suburban Manufacturing project. Up-front assistance was in the amount of $50,000. Requircd decertification datc is August 10,2002. Upon eomplcting the 2001 TIF Reports for the State Auditor, the December 31, 2001 fund balance for TIF District No. }-14 was $13,803. The last paymcnt on the $75,000 Bond was paid in 2001 leaving no TIF deficiency. B. Alternative Action: I. A motion to adopt a resolution decertifying TIF District No. 1-14. 2. A motion to deny adoption ofthc resolution decertifying TIF District No. 1-14. 3. A motion to table any action. C. Recommendation: Alternative No.1. Required by the Statutes. Housekecping item. D. Supoortin1! Data. Copy of resolution for adoption. . . . HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO ST ATE OF MINNESOTA Resolution No. BEING A RESOLUTION APPROVING THE DECERTIFICATION OF TAX INCREMENT FINANCING DISTRICT NO. OF THE CITY OF MONTICELLO. WHEREAS, on ,20_, the Housing and Redevelopment Authority (the "Authority") in and for the City of Monticello (the "City") created Tax Increment Financc District No. (the "District") within the Central Monticello Rcdevelopmcnt Project No.1 (the "Projcct"); and WHEREAS, as of the date hereof all bonds and obligations to which tax incrcment from the District have been pledged have been paid in full or defeased and all other costs of the Project havc been paid; and WHEREAS, the Authority by this resolution to cause the decertification of the District after which all property taxes generated by property within the District will be distributed in the same manner as all othcr property taxes. NOW THEREFORE, BE IS RESOLVED by the Commissioners of the I-lousing and Redevelopment Authority in and for the City of Monticello, Minnesota, that staff shall take such action as is necessary to cause the County Auditor of Wright County to decertify the District as a tax increment district and to no longer remit tax increment payable~ from the District to the City. DATED: (Seal) HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR "l'HE CITY OF MONTICELLO Chair ATTEST: ,~,_...".__...,--"",,--_...,~.,-~ Executive Director . . . 4B. HRA Agenda - 08107/02 Consideration to approve a resolution adoptin!! the modification to the Redevelopment Plan for Central Monticello Redevelopment Project No. 1 ~ and establishin!! TIF District No. 1-31 within Central Monticello Redevelopment Proiect No. I and adoptin!! the TIF Phm therefor. A. Reference and back!!round: SOlnetime ago, the I IRA and Council approved the preliminary concept for TIF assistance ror the Ultra Machining Company (UMC) project. A public hearing for establ ishment of TIF District No. 1-31 has been called f(w August 12, 2002, by the City Council. The TI F Plan was distributed to the taxing jurisdictions on, for cornpliance with the 30-day notice to comment. The Planning Commission is reviewing for approval the final plat and TIF resolution on August 6, 2002. Attorney Dan Greensweig, Kennedy & Graven, has draCted the Contract for Private Development (next item). City Staff is expected to review the site plan in two weeks at which time the building plans will also be submitted. Construction to commence September 15, 2002. The company's short and long term construction financing is through Twin City Federal and they will not be using the SBA program or Industrial Development Bonds. A State grant, regional and EDA loan will be used as part of the machinery and equipment financing. As you recall, the project initially called for 94 current jobs and the creation of 30 new jobs. I have been informed by UMC that they have recently laid off people and currently employ 70. For the purpose of the TI F, they project the creation of 20 new jobs within 2 years. See attached comparisons. B. Alternative Action: 1. A lnotion to approve the resolution adopting the modiication to the Redevelopment Plan for Central Monticello Redevelopment Project No.1; and establishing TIF District No. 1-31 within Central Monticello Redevelopment Project No. I and adopting the TIF Plan therefor. 2. A motion to deny approval of the resolution .......... 3. ^ motion to table any action. C. Recommendation: Recommendation is alternative no. I . . . HRA Agenda - 08/07/02 D. Suoportin!! Data: Copy of resolution for adoption, excerpts of the 'II F Plan, jobs and wage comparisons, and elevation drawings. 2 . MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY CITY OF MONTICELLO WRIGHT COUNTY STATE OF MINNESOTA RESOLUTION NO. RESOLlJTION ADOPTING A MODIFICATION TO THE REDEVELOPMENT PLAN FOR CI<:NTRAL MONTICELLO REDEVELOPMENT PROJECT NO.1, ESTABLISHING TAX INCREMF:NT FINANCING DISTRICT NO. 1-31 WITHIN CENTRAL MONTICELLO REDEVELOPMENT PROJECT NO. t, AND ADOPTING A TAX INCREMENT FINANCING PLAN THEREFOR. WIIEREAS, it has been proposed by the Board of Commissioners (the "Board") of the Monticello Ilousing and Redevelopment Authority (the "liRA") and the City of Monticello (the "City") that the lIRA 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. 1-31 (the "TIF Plan") therefor (the Redevelopment Plan and the TIF Plan are referred to collectively herein at the "Plans"), all pursuant to and in conformity with applicable law, including Minnesota S'latules, Sections 469.001 to 469.047, and See/ions 469./74 to 469./79, 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 to the Plans and has caused the Plans to be prepared; and WIIEREAS, the liRA 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, TIIEREFORE, BE IT RESOL YED by the Board as follows: 1. The liRA hereby finds that Tax Increment Financing District No. 1-31 is in the public interest and is an "economic development district" under Minnesota Stalutes, See/ion 469.174, Suhd 12, and finds that the Plans conform in all respects to the requirements of the Act and that the adoption of the proposed Plans will help provide employment opportunities in the State and in the preservation and enhancement of the tax base of the City and the State and thereby serves a public purpose. ') The HRA further nnds that the Plans will afford maximum opportunity, consistent with the sound needs for the City as a whole, for the development or redevelopment of the project area by private enterprise in that the intent is to provide only that public assistance necessary to make the private developments financially feasible. 3. Conditioned upon the approval thereof by the City Council tl)llowing its public hearing thereon, the Plans, as presented to the HRA on this date, are hereby approved, established and adopted and shall be placed on file in the office of the City Clerk. . . . . 4. Upon approval of the Plans by the City Council, the staff, the HRA's advisors and legal counsel are authorized and directed to proceed with the implementation of the Plans and for this purpose to negotiate, draft, prepare and present to this l30ard for its consideration all further plans, resolutions, documents and contracts necessary for this purpose. Approval of the Plans does not constitute approval of any project or a Development Agreement with any developer. 5. Upon approval of the Plans by the City Council, the City Clerk is authorized and directed to forward a copy of the Plans to the Minnesota Department of Revenue pursuant to Minnesota Statutes 469.175, Subd. 4a. 6. The City Clerk is authorized and directed to forward a copy of the Plans to the Wright County Auditor and request that the Auditor certify the original tax capacity of the District as described in the Plans, all in accordance with Minnesota Statutes 469.177. Approved by the Hoard of Commissioners of the Monticello Housing and Redevelopment Authority this 7th day of August, 2002. --.-..-.---.-..-..'..-..-.- Chair ATTEST: -.,.-,-.--.".-..-'.-- Secretary . . . Ehlers & Associates, Inc. Tax Increment Financing District Overview City of Monticello - Tax Increment Financing District No. 1-31 The following summary contains an overview of the basic elelnents of the Tax Increment Financing Plan fl.x TIF District No. 1-31. More detailed information on each of these topics can be tc)Und in the complete '1'1 F Plan. Proposed action: Establishment of Tax Increment Financing District No. 1-31 and the adoption of a Tax Increment Financing Plan. Redevelopment Project: Adoption of a Redevelopment Plan Modification for the Central Monticello Redevelopment Project NO.1. (The Modification is to include the project activities anticipated in Tax Increment District No. 1-31.) Type of TI F District: An Econonl ic Development District Parcel Nwnber: A portion of 155-011-000171 Proposed Development: The District is being created to facilitate construction of a 60,000 s.f. office/manufacturing facility for Ultra Machining Company. Maximum duration: The duration of District No. 1-31 wi II be 8 years fronl the date of receipt of the first increment (9 years of increment). The date of receipt of the first tax increment will be approximately 2004. Thus, it is estimated that District No. 1-3 I, including any modi fications of the Plan for subsequent phases or other changes, would terminate after 2012, or when the Plan is satisfied. Estimated annual tax increment: Proposed uses: Upto$70,012 The TIF Plan contains the tc)llowing budget: Land/Building Acquisition......... ........ ...................... ........ $395JlOO Site Improvements/Preparation ............................................ $5,000 Publ ic Uti I ities..................... ................................ ..... .......... $50,000 Parking Faci I ities.......... ........................................... ........... $50,000 Interest... ..................... ......... ........................... ......... ......... $175,000 Administrative Costs (up to 10%) ......................................$75,000 TOTAL PROJECT COSTS ..........................................$750,000 See Subsection 2-] 0, page 2-6 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. . . . TI F District Overview Form of financing: Financing will be primarily through a $395,000 pay-as-you-go note. Administrative fee: Up to 10% of annual increment, ifcosts arc justified. LGA/HACA penalty: The 2001 I ,egislature eliminated the provisions for a reduction in state tax increment financing aid (RISTIF A) or the alternative qualifying local contribution. Inter fund Loan ({equ irement: If the City wants to pay for administrative expenditurcs from a tax increment fund, a resolution authorizing a loan fronl another fund must be passed P lUOR to the issuance of the check, 3 Year Activity Rule (.\"-169. /76 Subd. 1a) At least one of the fL)lIowing 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 August, 2005. 4 Year Activity Rulc O' -169.176 ,)'ubd 6) After four years from the datc of ccrtification of thc District one of the tl)lIowing activities must have been commenced on each parcel in the District: . DenlOlition . Rehabi I itation . Renovation . Other site preparation (not including utility services such as sewer and water) . If the activity has not been started by the approximately August, 2006, no additional tax incrcment may be taken from that parccluntil the COlllmencelnent of a qualifying activity. Page 2 . . . TIF District Overview 5 Year Rule (9' 469.1763 ,)'uhd 3) 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 ofthe following occurs: . The revenues are actually paid to a third party with respect to the activity . l3onds, the proceeds of wh ich must be used to finance 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 five year period, or (ii) a reasonable temporary period within the meaning of the use of that term under~. 148( c)( 1) of the Internal Revenue Code, or are deposited in a reasonably required reserve or replacelnent 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 paYlnent of the costs, including interest on unreimbursed costs. . Any obligations in the Tax Increment District nlade after approximately August, 2007, will not be eligible for repayment from tax increments. Page 3 TIF District Overview . 130UNDARY MAPS OF CEN'fR^L MONTICELLO REDEVELOPMENT PROJECT NO. I ^ND T^X INCREMENT FINANCING DISTRICT NO. 1~31 . Page 4 . 08/01/02 THU 15:17 FAX 7634786483 liMC. INC. RUG 01 '02 09:23RM CITY OF MONTICELLO )S'-l'~Od IaJ 002 P.2/3 . GOALS OF BUSINESS RECEIVING ASSISTANCE EXISTING JOBS PI~u.s~ indicate number of r.:l.lrrcnt emploYI:l::s at each level and indic::tlte the corresponding benc::tic Ir.:vcl. These jobs YOll c::xpect lo retain with relocation. . 08/01/02 THU 15:18 FAX 7634786483 liMC. INC. RUG 01 '02 09:23AM CITY OF MONTICELLO q-\-o"'-~ P.3/3 . . GOALS OF BUSINESS RECEIViNG ASSISTANCE NEW .JOllS Pleas~ indic41tc number of additional cmploycr.:s at c;l..ch level and indicate the corresponding benetit level. Number uf n\:.!w jobs creal0d uver the first two yea.rs of relocation. 14l 003 P.2/3 L ) -"02 12: 18PM cITY OF MONTICELLO '. GOALS OF BUSINESS RECEIVING ASSISTANCE EXISTING JOBS pkase indicalc number of current em"ployc:es at each level and indicate the corresponding benefit !evel. These jobs YOLl expecl to retain with relocation. Job Creation Hourlv Wage Howlv Value Level of Vol un tar v Benefits (S) Full~time Part-time (Excl. benellts) Less than $7.00 -.- $7.00 to $7.99 -~ $8.00 to $9.99 -- ;J, $10.00 to $11.99 ~?.il.f --~.--- .'\ A $12.00 to $13.99 ~ :, .01\ \3 $14.00 to $15.99 'L{. ::l3 -- -- 1'-\ $16.00to $17.99 :,. L{. 1'1 ~- if, ~ $18.00'to $19.99 ~ ,3.87 \, $20.00 to $21.99 .ll,f,.03 I 'A\ $22.00 and higher ~ s. So C\"\ . I I " I I II - I I Ie . . II II II II . -' . . '02 12: 18PM CITY OF MONTICELLO P.3/3 GOALS OF BUSINESS RECEIV1NG ASSISTANCE NE'W .J OBS Please indicate number 01' addition<\l employees at each level and indicate the corresponding ben~fH level. Number of new jobs created over the first two ycars Qf relocation. Joh Creation Hourlv WaQe Level Hourly Yalu~ of V olllntarv BC11etit5 (S) Full-time Part-time (Exd. benefits) Less than $7.00 $7.00 to $7.99 $8.00 to $9.99 $10.00 to $11.99 ,. ).1"- -- 3 Lt :6 .3.0,\ $12.00 to $13.99 S 4.::2~ $14.00 to $15.99 L\ --- I I Lj ~ ,-\-il\ $16.00 to $17.99 $18.00 to $19.99 ~3'&1 S b .0:> $20.00 to $21. 99 $22.00 and higher s 5.50 '00 . . . 4C. HRA Agenda - 8/07/02 Consideration to approve enterine into a Contract for Private Development amone the HRA. the City. and Terrace & Mary Tomann Familv Limited Partnership. A. Reference and backeround: The Contract for Private Development outl ines the terms and conditions of TIF assistance to the developer, Terrace & Mary Tomann Family Limited Partnership dha Ultra Machining Company (UMC). The Contract was drafted hy Dan Greensweig, Kennedy & Graven, and a copy provided to the developer. Generally, the Contract is executed or agreed upon hetween the parties, prior to the City Council approving the estahlishment of the TIF District. The liRA agreed to reimburse the developer up to $395,000 of the $653,400 land cost. Interest rate of 7.25%. The City agreed to waive or forgive the trunk fees. The developer agreed to construct a 60,000 sq ft office/ manuf~-1cturing facility on 10 acres of land located along East Chelsea Road. According to Ed Sorgatz, Olson General Contractors, the enclosed preliminary building elevations show the huilding at 72,000 S4 ft. .Johs creation as noted in agenda item 4B are itemized in the contract under job and wage goals. The construction commencement date is September 15, 2002, with completion by July 1, 2003. The Council will be asked to approve the Contract on August 12, 2()()2. A public hearing notice will appear in the local newspaper on August 8, 2002, relative to the TIF assistance and to comply with the business suhsidy law. The developer must provide a copy of the purchase agreement, evidence of short and long term financing, evidence for "but for" test, and proof of insurances prior to issuance of the huilding permit. B. Alternative Action: 1. A motion to approve entering into the Contract for Private Development among the liRA, the City, and the Tomann Family Limited Partnership. 2. ^ motion to deny authorization to enter into the Contract ............................. 3. ^ motion to table any action. C. Recommendation: Recommendation is Alternative No.1. D. Supporting Data. Excerpts of the Contract. . . . -.--::- -.=-'-'=-:--:='''-'--'':'~-----:'''':''''----:::-:-::-----:''''::':'''----==----:''''::::::;:-''''''''-~---=--=----=---':''':''-:::----.~=--'''':''--:--''':::':':''':-;:--::-----:::'::'''---' '''"~--''''::''':':--=-~---=-----::'"'"''''==--:=---:-''':'''':'''-:-._-~'----=:~=-..:::.:....---:-:-::-~--:-:-:--=--.:..:.----:---=-~...::..:.......~_-:----'-...:..- CONTRACT FOR PRIVATE DEVELOPMENT By and Among TERRACE & MARY TOMANN FAMILY LIMITED PARTNERSHIP and HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO and THE CITY OF MONTICELLO, MINNESOTA Dated as of: , 2002 ___ .,__. . - "_,, _.. ,..__. __ ___ .._ _n __.." ---. -.-- .,._--" ._". ---., --" '''.-..- .-. ---... ........-- ".--. ,,_. ..--.... __ ...___._ ._..,___ __. .___,'___ ,.___. '__'.'0..---' ".-.- ..----..- ..-. --,,- -.--. --... --. .-.. -. ...-.- ..--... -.. .-... .--... - This document was drafted hy: KENNEDY & GRA YEN, Chartered 470 Pillsbury Center 200 South Sixth Street Minneapolis, Minnesota 55402 Telephone: (612) 337-9300 JKP-216373v2 MNI90-IOO ARTICLE III . Acquisition of Property;. Financial Assistance Section 3.1. Status of the Development Property. As of the date of this Agreement the Developer has entered into a purchase agreement with a third party for the Development Property. The Authority shall have no obligation to purchase the Development Property or any portion thereof. Section 3.2. Soil Conditions. The Developer acknowledges that neither the Authority nor the City makes any rcpresentationsor warrantics as to the condition of the soils on the Development Property or its titness for construction of the Minimum Improvements or any other purpose for which the Developer may make use of such property. The Developer further agrees that it will indemnify. defend. and hold harmless the Authority. the City. and their governing body members. officers. agents, servants, and employees. from any claims or actions arising out of the presencc, if any, of hazardous wastes or pollutants on the Development Property. The Developer's obligations under this Section 3.2 shall survive terminationofthis Agreement . Section 3.3. PaY'11ent of Adminis~rative Costs. The Developcr agrees that it will pay upon demand by the Authority. Administrative Costs (as hereafter detined). For the purposcs of this Agreement the term "'Administrative Costs"' means out-or-pocket costs incurred by the Authority and attributable to 61' incurred in connection with the negotiation and preparation of this Agreement and other documents and agreements in connection V\ ith the development contemplated hereunder. Out-of-pocket Administrative Costs shall be evidenced by invoices. statements. or other reasonable written evidence of the costs incurred by the Authority. As of the datc of this Agrccment. the Developer has deposited $5.000 with the Authority to bc applicd toward Administrative Costs. The amount by which this deposit exceeds the Authority's actual Administrative Costs. if any. shalL upon demand by the Developer. be returned to the Developer. but no earlier than thc date on which the Developer receives a Certificate of Complction pursuant to Section 4.4 of this Agreement. Section 3.4. Financing of Land Acquisition Costs. In order to make development of the Minimum Improvemcnts economically feasible, the Authority will reimburse the Developer for the Land Acquisition Costs in accordance with the following terms and conditions: (a) Subject to the terms and conditions of this Agrcement. the Land Acquisition Costs will be reimbursed to the Developer with simple intercst thereon at 7.25(Yo per annum. interest commencing to accrue on thc date that the Developer complies with the cost certification requirement described in paragraph (f) of this Section. The Land Acquisition Costs will be reimbursed hy the Authority to the Dcveloper in semi-annual installments payable on each February 1 and August 1 (""Payment Dates") commencing August I. 2004 and concluding no later than the Termination Date. These payments will be made from Available Tax Increment as detined in this Section 3.4 and from no other source. . (b) The term "Available Tax Increment" means 90% of the Tax Increment with rcspect to the Development Property as calculated by the County and paid to the Authority during the six JKI'.216.173vl MN 1')0-100 7 months preceding any Payment Date:, . (c) If on any Paymcnt Date there is available to the Authority insufficient Available Tax Increment to pay the amounts due on such date. the amount of such deficiency shall be deferred and shall be paid. without intcrest thereon. on the next Payment Date on which the Authority has available to it Available Tax Increment in excess of the amount necessary to pay the amount due on such Payment Date. (d) The Authority shall have no obligation to pay any portion of the Land Acquisition Costs that remains unpaid after the Termination Date. The Authority may prepay all or a portion of the Land Acquisition Costs at any time. (e) 'fhe Authority shall not he 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 failcd to comply with the payment procedures described herein. . (f) At least 30 days before becoming 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 lhe Developer has paid Land Acquisition Costs in at least the amount of $395.000; (ii) that no Event of Default has occurred and is continuing under this Agreement and (iii) that the Developer has received a Certiticate of Completion pursuant to Section 4.4 of this Agreement. The payment request certificate must be accompanied by evidence satisfactory to the Authority that the Land Acquisition Costs have been incurred and paid by the Developer. and without limitation of the foregoing. must include a copy of the purchase agreement. a certiticate of real estate value evidencing the purchase price paid by the Developer for the Development Property. and evidence reasonably satist~lCtory to the Authority that the purchase price did not exceed the fair market value of the Development Property at the time of the Developer's acquisition of it. (g) The Authority makes no warranties or representations that A vailable Tax Increment will be sufficient to pay thc Land Acquisition Costs. The Developer agrees and understands that A vailable Tax Increment is suhject to calculation by the County and change in State lavv, and that a significant portion of Land Acquisition Costs may remain unpaid after the Termination Date. The Developer further agrees and understands that estimates of Available Tax Increment provided by the Authority and its agents, officers. or employees are estimates only and not intended for the Developer's reliance. Section 3.5. Busint'ss Suhsidy Agreement. The provisions of this Section constitute the "business suhsidy agreement" bet\veen the Developer and the Authority and between the Developer and the City, f(Jr the pUrpl)s(:s of the Business Subsidy Act. (a) (Jem:r{(! Tertlls The parties agree and represent to each other as follows: . (I) The subsidy provided to the Developer by the Authority consists of payments to the Developer for Land Acquisition Costs pursuant to this Agreement and the waiver by the City of certain sewer and water trunk fees. 'These payments and waivers represent a forgivable loan that is n.::payahle by the Developer in accordance with this Section. The .11;.1'.216.17.1\1 MNllJ()-I()() 8 . payments under Section 3.4 are payable from a portion of the Tax Increments from the TlF District an economic development tax increment financing district. (2) The public purposes of the subsidy are to promote development of a manubcturing facility in the City, increase manufacturingjobs in the City and the State, and increase the tax base of the City and the State. These public purposes predominate over any incidental benefit received by the Developer as the subsidy is provided solely to induce the Developer to construct the manufacturing improvements. (3) The goals for the subsidy are: to secure development of the Minimum Improvements on the Development Property; to maintain such improvements as a manufacturing facility for at least five years as described in clause (6) below; and to create the jobs and 'vvage levels in accordance with Section 3.5(b) hereof. (4) If the goals described in clause (3) are not met, the Dcveloper must make the payments to the Authority and City described in Section 3.5(c). (5) The subsidy is needed because land acquisition costs make development of the Minimum Improvements infeasible without public assistance, all as determined by the City upon approval of the TIF Plan. . (6) The Developcr must continue operation of the Minimum Improvements as a manuhlcturing facility for at least five years after the date of issuance of the ccrtificate of completion. (7) The Developer does not have a parent corporation. (8) In addition to the assistance provided undcr this Agreement, the Dcveloper expects to receive additional assistance in connection with machinery and cquipment to be purchased by the Developer for use at the Minimum Improvements, specifically a loan from the Monticello Economic Development Authority ("EDA") in the amount of $ and a Minnesota Investment Fund Grant from the Minnesota Department of Trade and Economic Development in the amount of $ . Notwithstanding the foregoing, nothing in this paragraph constitutes a contractual obligation by the Authority, the City, or thc EDA with respcct to such assistance. . (b) Joh and Wuge (]mt!.'. Within two years after the date of issuance of the Certificate of Completion of the Minimum Improvements (the '.Compliance Date''), the Developer shall cause to be created at least 20 new li.dl-time equi\alentjobs on the Development Property (the "New Jobs") and shall cause the \vages for the New Jobs to be as follows: (i) at least 1 New Job shall pay no less than $10.00 per hour. exclusive of benefits: (ii) at least 2 New Jobs shall pay no less than $12.00 per hour. exclusive ofbcnetits: (iii) at least 4 Ne\v Jobs shall pay no less than $14.00 per hour. exclusive ofbenelits: (iv) at \cast 4 New Jobs shall pay no less than $16.00 per hour. exclusive of benefits; (\.) at least 4 New Jobs shall pay no less than $18.00 per hour, exclusive ofbenctits; (vi) at least 4 New Jobs shall pay no less than $20.00 per hour, exclusive of benefits: and (vii) at least 1 New Job shall pay no less than $22.00 per hour. exclusive of benefits. In addition to the foregoing, the Developer JI;.P':~ 16373v I MNllJO-lon 9 . . . shall, within 6 months of receiving a certificate of occupancy for the Minimum Improvements, cause to be transferred to the Development Property 70 jobs that exist as of the date of this agrecment at the Developer's currcnt bcility in Corcoran, Minnesota (the "Existing Jobs""), shall cause the Existing Jobs to be maintained at the Development Property at least through the Compliancc Date, and shall cause the wages for the Existing Jobs at all times through the Compliance Date to be as follows: 0) at least 2 Existing Jobs shall pay no less than $10.00 per hour, exclusive of benefits; (ii) at lcast 5 Existing Jobs shall pay no less than $12.00 per haUL exclusive of benetits; (iii) at least 6 Existing Jobs shall pay no less than $14.00 per hour. exclusive of benetits; (iv) at least 12 Existing Jobs shall pay no less than $16.00 per hour, exclusive of benetits; (v) at least 8 Existing Jobs shall pay no less than $18.00 pcr hour, exclusive of benefits: (vi) at least 17 Existing Jobs shall pay no less than $20.00 per hour, exclusive of benefits; and (vii) at least 20 Existing Jobs shall pay no less than $22.00 per hour, exclusive of benefits. Notwithstanding anything to the contrary hcrein. if the wage and job goals described in this paragraph are met by the Compliance Date, those goals are deemed satisfied despite the Developer's continuing obligations under Sections 3.5(a)(6) and 3.5(d). (c) Remedies. If the Developer fails to meet the goals described in Section 3.5(a)(3), the Developer shall repay (1) to thc Authority upon written demand from the Authority a '.pro rata share" of the amount of any payments made to the Developer under Scction 3.4 hereof. (2) to the City upon written demand from the City a "pro rata share"' of the amount of any fee waivers granted by thc City under Section 3.7. and (3) to the Authority and City. respectively. interest on the amounts in clauses ( 1 ) and (2) at the impl icit price deflator as deti ned in Minnesota Statutes. Section 116J994. subu. 6. accrued from the date of issuance of the certificate of completion to the date of payment. The tcrm ..pro rata share" means pcrcentages calculated as follows: (i) if the failure relates to thc number of jobs. the jobs required less the New Jobs created. dividcd by the jobs required; Oi) if the failure relatcs to wages, the number of jobs required less thc numberof jobs that meet the rcquired wages, divided by the number of jobs required; (iii) if the failure relates to maintenance of the Minimum Improvements in accordance with Section 3.5(a)(6). 60 less thc number of months of operation as a metals recycling facility (\V.here any month in which the facility is in operation for at least 15 days constitutes a month of operation). commencing on the date of the certificate of completion and ending with the date the facility ceases operation as determined by the Authority. divided by 60: and (iv) if more than one of clauses (i) through (iii) apply, the sum of the applicable percentages. not to exceed 100%. Nothing in this Section shall be construed to limit the Authority's or City's remedies under Article IX hcreof. In addition to the remedy described in this Section and any other remedy available to the Authority or City for failure to meet the goals stated in Section 3.5(a)(3), the Developer agrees and understands that it may not receive a business subsidy from the Authority, thc City. or any other '.grantor" (as detincd in the Business Subsidy Act) for a period of five years from JKP-216373\ I MNI90-IOO 10 . . . the date of the failure or until the Developer satisties its repayment obligation under this Section, whichever occurs first. (d) Reports. The Developer must submit to the Authority a written report regarding business subsidy goals and results by no later than March of each year, commencing March 1, 2003 and continuing until the later of (i) the date the goals stated Section 3.5(a)(3) are met; (ii) 30 days after expiration of the live-year period described in Section 3.5(a)(6); or (iii) if the goals are not met, the date the subsidy is repaid in accordance with Section 3.5(c). The report must comply with Section 116J. 994, subdivision 7 of the Business Subsidy Act. The Authority will provide information to the Developer regarding the required forms. If the Developer fails to timely file any report required under this Section, the Authority will mail the Dcveloper a warning within one week after the required filing date. If. after 14 days of the postmarked date of the warning, the Developer fails to provide a report. the Developer must pay to the Authority a penalty of $100 for each subsequent day until the report is tiled. The maximum aggregate penalty payable under this Section $ LOOO. (e) Audits. Upon written request of the Authority or City in any year, the Developer shall retain at its expense an independent. third party accountant to audit any job and wage report submitted by the Developer under paragraphs (d) or (t) of this Section. The Developer must deliver to the Authority a written report from the accountant promptly upon completion of such audit. Section 3.6. Use of Tax [ncrement. Except as set forth herein, the Authority shall have no obligation to the Developer with regard to its use of Tax Increment and may use Tax Increment for any lawful purposes. whether set forth herein or otherwise. Section 3.7. Fee W ai vel's for Water and Sewer. The Developer acknowledges that sewer and water trunk fees (the "Trunk Fees") imposed by the City on a development the size of the Minimum Improvements would normally total $92,600. The City hereby agrees to waive $83,340 of these Trunk Fees. Thc Developer shall, at its option, pay the remaining $9,260 of Trunk Fees upon: (i) issuance of a building permit for the Minimum Improvements; or (ii) as assessed against the Minimum Improvements over a period of 10 years, with 6.5% interest accruing on such assessments; providcd that thc Developer will provide the City with written confirmation of which of these two lrunk Fee payment options it has selected and shall take such actions as are necessqry to effect its selected payment option prior to issuance of a building pemlit for the Minimum Improvements. ,1KI',216373\ I MNIl)O-IOO 11 . . . ARTICLE IV Construction of Minimum Improvements Section 4.1. Construction of Improvements. The Developer agrees that it will construct the Minimum Improvements on the Development Property in accordance \-vith the approved Construction Plans and at all times during the term of this Agreement. will operate and maintain. preserve and keep the Minimum Improvements or cause such improvements to be maintained. preserved and kept with the appurtenances and every part and parcel thereof, in good repair and condition. The Authority shall not have any obligation to operate or maintain the Minimum Improvements. Section 4.2. Construction Plans. (a) Before commencement of construction of the Minimum Improvements, the Developer shall submit to the Authority Construction Plans. The Construction Plans shall provide for the construction of thc Minimum Improvements and shall be in conformity with the Redevelopment Plan, this Agreement, and all applicable State and local laws and regulations. The Authority will approve the Construction Plans in writing if: (i) the Construction Plans conform to the terms and conditions of this Agreement; (ii) the Construction Plans conform to the goals and objectives of the Redevelopment Plan; (iii) the Construction Plans conform to all applicable federal, state and local laws. ordinances, rules and regulations: (iv) the Construction Plans are adequate to provide for construction of the Minimum Improvements: (v) the Construction Plans do not provide for expenditures in excess of the funds a\"ailable to the Developer from all sources for construction of the Minimum Improvements; and (vi) no Event of Default has occurred. ApIJroval may be based upon a review by the City's Building Official of the Construction Plans. No approval by the Authority shall relieve the Developer of the obligation to comply with the terms of this Agreement or of the Redevelopment Plan, applicable federal, state and local laws, ordinances. rules and regulations. or to construct the Minimum Improvements in accordance therewith. No approval by the Authority shall constitute a waiver of an Event of Default. If approval of the Construction Plans is requested by the Developer in \-\iriting at the time of submission. such Construction Plans shall be deemed approved unless rejected in writing by the Authority. in whole or in part. Such rejections shall set forth in detail the reasons therefore, and shall be made within 10 days after the date of their receipt by the Authority. If the Authority rejects any Construction Plans in whole or in part. the Developer shall submit new or corrected Construction Plans within 10 days after written notitication to the Developer of the rejection. The provisions of this Section relating to approval. rejection and resubmission of corrected Construction Plans shall continue to apply until the Construction Plans have been approved by the Authority. The Authority's approval shall not be unreasonably withheld. Said approval shall constitute a conclusive determination that the Construction Plans (and the Minimum ItTlprovements constructed in accordance with said plans) comply to the Authority's satisfaction with the provisions of this Agreement relating thereto. (b) If the Dcveloperdesires to make any Material change in the Construction Plans after their approval by the Authority, the Developer shall submit the proposed change to the Authority for its approval. I f the Construction Plans, as modi fied by the proposed change, conform to the requirements of this Section -1-.:2 of this Agreement with respect to such previously approved J"I'-21037-'\1 ~lN 190,100 12 . Construction Plans, the Authority shall approve the proposed change and notify the Developer in writing of its approval. Such change in the Construction Plans shalL in any event. be deemed approved by the Authority unless rejected. in whole or in part, by written notice by the Authority to the Developer. setting forth in detail the reasons therefor. Such rejection shall be made within ten ( I 0) days after receipt of the notice 0 f such change. The Authority's approval of any such change in the Construction Plans wi \1 not be unreasonably witWleld. Section 4.3. Commencemcnt and Completion of Construction. Subject to Unavoidable Delays, the Developer shall commence construction of the Minimum Improvements by September 30, 2002. Subject to Unavoidable Delays, the Developer shall complete the construction of Minimum Improvements by July I. 2003. All work with respect to the Minimum Improvements to be constructed or provided by the Developer on the Development Property shall be in conformity with the Construction Plans as submitted by the Developer and approved by the Authority. . The Dcveloper agrees for itself, its successors and assigns, and every successor in interest to the Development Property, or any part thereof, that the Developer. and sLlch successors and assigns. shall promptly begin and diligently prosecute to completion the development of the Development Property through the construction of the Minimum Improvcments thereon, and that such construction shall in any event be commenced and completed within the period specified in this Section 4.3 of this Agreement. Thc obligation to construct thc Minimum Improvements in accordance with this Section touches and concerns the land, and shall run with the property and be binding upon all successors and assigns to the Development 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 Developcr with respect to such construction. Section 4.4. Certificate of Completion. (a) Promptly after completion of the Minimum Improvements in accordance with those provisions of the Agreement relating solely to the obligations of the Developer to construct the Minimum Improvcments (including the dates t()l' beginning and completion thereot), thc Authority will furnish the Developer with a Certificate shown as Exhibit B. 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) I f the Authority shall refuse or fail to provide any certitication 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 failed to complete the Minimum hnprovements in accordance with the provisions of the Agreement or is otherwisc in default and what measures or acts it will be necessary. in the opinion of the Authority. for the Developer to tak.e or perform in order to obtain such certification. . (c) The construction of the Minimum Improvcments shall be deemed to be complete upon issuance of a certificate of occupancy by the City for. and the opening for business of. the Minimum Improvements. J"I'-210373\1 MNllJO-IOO 13 . . . 4D. HRA Agenda - 08/07/02 Consideration to approve a resolution adoptine the modification to the Redevelopment Plan for Central Monticello Redevelopment Proiect No.1; and establishing TIF District No. 1-32 within Central Monticello Redevelopment Project No.1 and adoptine the TIF Plan therefor. A. Reference and backl!round: Sometime ago, the HRA and Council approved the preliminary concept for "rIF assistance for the Production Stamping, Inc. project. A public hearing for establishment of TIF ~istrict No. 1-32 has been called for August 12, 2002, by the City Council. T'he TIF Plan was distributed to the taxing jurisdictions on, for compliance with the 30-day notice to comment. The Planning Commission is reviewing for approval the final plat and TIF resolution on August 6, 2002. Attorney Dan Greensweig, Kennedy & Graven, has drafted the Contract for Private Development (next item). City Staff is expected to review the site plan within a couple of weeks. Grading and footings to be installed this fall with major construction in the spring. The company's short and long term construction financing is through the State Bank of Rogers and they will not be using the SBA program or Industrial Development I1onds. It is anticipated that an EOA loan will be used as part of the real estate financing. The company currently employs 35 people and plan to hire another 20 people within 2 years. See attached joh and wage goals. B. Alternative Action: 1. A motion to approve the resolution adopting the modfication to the Redevelopment Plan for Central Monticello Redevelopment Project No.1; and establishing TIF District No. 1-32 within Central Monticello Redevelopment Project NO.1 and adopting the TIF Plan theref'lJL 2. A motion to deny approval of the resolution .......... 3. A motion to tahle any action. C. Recommendation: Recommendation is alternative no. I HRA Agenda - 08/07/02 . D. Supportine Data: Copy of resolution for adoption, excerpts of the TlF Plan, jobs and wage goals, and elevation drawings. . . 2 . . . MONTICELLO HOUSING AND REllli:VELOPMENT AUTHORITY CITY OF MONTICELLO WRIGHT COUNTY ST ATE OF MINNESOTA RESOLUflON NO. RESOLUTION ADOPTING A MODIFICATION TO THE REDEVELOPMENT PLAN FOR CENTRAL MONTICELLO REDEVELOPMENT PRO,JECT NO.1, ESTABLISHING TAX INCREMENT FINANCING DISTRICT NO. 1-32 WITHIN CENTRAL MONTICELLO REDEVELOPMENT PRO,JECT NO.1, AND ADOPTING A 'I AX INCREMENT FINANCING PLAN THEREFOR. WIIEREAS, it has been proposed by the Board of Commissioners (the "Board") of the Monticello I-lousing and Redevelopment Authority (the "HRA") and the City of Monticello (thc "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 forI'ax Increment Financing District No. 1-32 (the "'I'll" Plan") therefor (the Redevelopment Plan and the TIF Plan are referred to collectively herein at the "Plans"), all pursuant to and in conformity with applicable law, including Afinncsota Statutes, 5,'cctions 409.00] to 469.047, and Sections 469.174 to 469.179, inclusive, as amended (the "Act"), all as reflected in the Plans and presented for the 1.30ard's consideration; and WHEREAS, the HRA has investigated the t:lcts relating to the Plans and has caused the Plans to be prepared; and WIIEREAS, the lIRA has perfi.1rrned all actions requirecl by law to be performed prior to the adoption of the Plans. The liRA has also requested the City Planning Commission to provide fix 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, TIIEREFORE, I.3E IT RESOLVED by the Board as follows: I. The HRA hereby finds that Tax Increment Financing District No. 1-32 is in the public interest and is an "economic developmcnt district" under Minnesota S'totutes, Section 469.] 74, Suhd. ]2, and finds that the Plans confonn in all respects to the requirements of the Act and that the adoption of the proposed Plans will help provide cmployment opp0l1unities in the State and in the preservation and enhancement of the tax base of the City and the State and thereby serves a public purpose. ) The ~IRA further finds that the Plans will afford maximum opportunity, consistent with the sound needs for the City as a whole, for the development or redevelopment of the project area by private enterprise in that the intent is to provide only that public assistance necessary to make the private developments financially feasible. 3. Conditioncd upon the approval thereof by the City Council following its public hearing thereon, the Plans, as presented to the HRA on this date, are hereby approved, established and adopted and shall be placed on file in the office of the City Clerk. . . . 4. Upon approval of the Plans by the City Council, the staft~ the HRA's advisors and legal counsel are authorized and directed to proceed with the implementation of the Plans and for this purpose to negotiate, draft, prepare and present to this Board for its consideration all further plans, resolutions, documents and contracts necessary for this purpose. Approval of the Plans does not constitute approval of any project or a Development Agreement with any developer. 5. Upon approval of the Plans by the City Council, the City Clerk is authorized and directed to forward a copy of the Plans to the Minnesota Department of Revenue pursuant to Minnesota Statutes 469.175, Subd. 4a. 6. The City Clerk is authorized and directed to forward a copy of the Plans to the Wright County Auditor and request that the Auditor certify the original tax capacity ofthe District as described in the Plans, all in accordance with Minnesota Statutes 469. I 77. Approved by the Board of Commissioners of the Monticello Housing and Redevelopment Authority this 7th day of August, 2002. Chair ATTEST: Secretary . . . Ehlers & Associates, Inc. Tax Increment Financing District Overview City of Monticello - Tax Increment Financing District No. 1-32 The following SUlnmary contains an overview of the basic elements of the Tax Increment Financing Plan for TIF District No. 1-32. More detailed information on each of these topics can be found in the complete TIF Plan. Proposed action: Establishment of Tax Increment Financing District No. 1-32 and the adoption of a Tax Increment Financing Plan. Redevelopment Project: Adoption of a Redevelopment Plan Modification for the Central Monticello Redevelopment Project No. I. (The Modification is to include the project activities anticipated in Tax Increment District No. 1-32.) Type of TI F District: An EconOln ic Developlnent District Parcel Number: A portion of 155-011-000171 Proposed Development: The District is being created to facilitate construction of a 60,000 s.f. office/manufacturing t~lcility for Production Stamping Company. Maximum duration: The duration of District No. 1-32 will be 8 years from the date of receipt of the first increment (9 ycars of increment). The date of receipt of the first tax increment will be approximately 2004. Thus, it is estilnated that District No. 1-32, including any Inodifications of the Plan for subsequent phases or other changes, would term inate after 2012, or when the Plan is satisfied. Estimated annual tax increment: Proposed uses: IIp to $91,898 The TI F Plan contains the following budget: Land/Bu i !cling Acquisition................. ... ..' .................... .... $295,000 Site Improvements/Preparation.................. ........................ $50,000 Publ ic Uti I ities.. ...... .... ........................................... ............. $50,000 Park ing Faci lities..................... ........... ...... .......... .......... ...... $50,000 Interest..... ..' ....................................... ...................... ......... $275,000 Administrative Costs (up to 10%) ......................................$80,00Q TOT A L PRO.' ECT COSTS... .............................. ......... $800,000 See Subsection 2-10, page 2-6 of the TI F Plan for the full budget authorization. Additional uses of funds arc authorized which include inter-fund loans and transfers and bonded indebtedness. . . . TIF District Overview Form of financing: Financing will be primarily through a $295,000 pay-as-you-go note. Administrative fee: Up to 10% of annual increment, if costs are justified. The 200 I Legislature eliminated the provisions for a reduction in state tax increment financing aid (RISTIFA) or the alternative qualifying local contribution, I ,GA/IIACA penalty: Interfund Loan Requirement: I f the City wants to pay for adm inistrative expenditures from a tax increlnent fund, a resolution authorizing a loan from another funclmust be passed FlUOR to the issuance of the check. 3 Year Activity Rule (\,1'-469.176 :)'uhd. 10) At least one of the following activities must take place in the District with in 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 August, 2005. 4 Year Activity Rule (\\' -169.176 S'uhd 6) After four years from the date of certification of the District one of the f(Jllowing activities must have been cOlnmenced on each parccl in the District: . Demolition . Rehabi I itation . Renovation . Other site preparation (not including utility servIces such as sewer and water) . I f the activity has not been started by the approximately August, 2006, no additional tax increment Inay be takcn from that parcel until the commcncement of a qualifying activity. Page 2 . . . TIF District Overview 5 Year Rule (~. 469.1763 SlIhd 3) 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 f(Jllowing occurs: . The revenues are actually paid to a third party with respect to the activity . Bonds, the proceeds of which must be used to finance thc activity, arc issued and sold to a third paliy, the revenues are spcnt to rcpay the bonds, and the proceeds of the bonds either are reasonably expected to be spcnt before the end of the later of (i) the five year period, or (ii) a reasonable temporary period with in the mean ing of the use of that term under s. 148(c)( 1) of the Internal Revenue Codc, or are deposited in a reasonably required reserve or replacemcnt fund . Bincling contracts with a third party arc entcred into for performance of thc activity ancl the revenues are spent under the contractual obligation . Costs with respect to the activity are paid and the rcvenues are spent to reimburse for payment of the costs, including intcrest on unreimbursecl costs. . Any obligations in the Tax Increment District made after approxirnatcly August, 2007, will not be eligible for repaymcllt from tax illcrcments. Page 3 T1F District Overview . BOUNDAR Y MAPS OF CENTRAL MONTICELLO REDEVELOPMENT PROJECT NO. I AND TAX INCREMENT FINANCING DISTRICT NO. 1-32 . Page 4 . II II -. . . . . . . . " .i .'; .: I II! III!: I lIIi I I . .: APR 04'02 12: 13PM CITY OF MONTICELLO GOALS OF BUSINESS RECEIVING ASSISTANCE EXISTING JOBS 1"lei:lse iod.icate 11wuber of current employees at each lev~l and indicate the corre.sponding, beneIit level. These jobs you e,cpcct to retain with relocation. J oh Creation Full-time 1/ J ~ 6 / S "bS Hourlv Wa<!.e Lev<:.1 Part-time (Excl. benefit:.;) Less than $7.00 $7.00 to $7.99 $8.00 to $9.99 $10.001.0 $1 1.99 $12.00 to $13.99 $14.00 La $15.99 $16.00 to $17.99 $18.00 to $19.99 $20,00 to $21.99 $22.00 and higher Hourlv Value ofVoluntarv BenefiL" (S) ~I 30 Ill/a l .04/08/02 MON 09:15 FAX 612 428 8339 PRODUCTION STAMPING . RPR 04 '02 12: 13PM CITY OF MONTICELLO -. - ~ - II - II I - II - II II II III II , II t4J 003/004 P.3/3 GOALS OF BUSINESS RECEIVING ASSISTANCE NEW JOBS Plca::;e indicate number of additional employccs at each level and indicate the Ctmesponding benefit level. Number of neW jobS created over the tirst two years of relocation. Job Creation Hourlv Wage Level Hourly Vall.1e of Voluntary Benefits (S) Full-time Part-time (ExcL benefits) Less than $7.00 $7.00 to $7.99 $8.00 to $9.99 cP,O d,30I}Vrl' $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 $20.001:0$21.99 $22.00 and higher . $ b!';O!f~!1 RMIDOI.!--Rl1I - PlPOS[D AGmE~l! l'RtCA!'jlT P'ANn. ..",," CMT", '''0 ~'~'Ii~~.". ~=:::: ====- '::_---,- -tr SCAu:~ lfl' .. I....". ~ I i . I i II J i i i , ) ,- - - I ) ~u: -'.,- , : -, ) "'~ ., ) -, ,= i.J":: ~ -. , -- I -- _~4.dc '- e_____ A.~ ~lfllI~.l D I I I I I I- i I- I I . ~ ~ ., " I II III II IE: '. - i !-' ( ,;' , I" , It ..::C::: ( < "- ~ !,.!" -- ''''''''", --^ ,- ..... =<-.!.c.'. .- -. -. ". - /IIIIIl ""'" ;II '- - ." '" .- - - &=-=.:;:-==--=~----,- A~ :leAl..[; 1/11 _1--0- . ! i I i i I &~ -~-=-~- -- -=-= --...- -= --- '" A~ ~: 'fI'~. 1-0 . SEE 3 Al '" 4/AI r-'---'-'---- I i I ~ I -, . I 9! 14~'5' O,H, g ',' ODOR ;>; PROPOSED ! BUILDING 50,000 SF I =1 ' SLOPE ,1 30 LJ " "~-'12'X14j 0 H BuiLbltilG t9 ~'__:(~___ _ _:::'~OOR 200'-0" I ElifA$K I ltiC~'<10' 14'<15' 0 H i I :: I ~OORS ODOR 'I <') i LG.-[J=1'----r--'-nn+'.".'~, i I 30'-0"<'6'-o-<6",',::j ,/i~~~SUR~ I THICK CONC. PAD -[ ISEE OETAlY : OI16/AI ! I ,i I 1s:! ' I ' is :IIIIIIIIIIIIIH ~ I :R4Jillllili1 I I I I I I I I I : I I I I I I I I . ~ "--,r:...-:- (' i . <') IX) <Ii to '" i Ii 'i... . " " " " " " " "" I I I I I I I I I I I I I I I I I I 35'+0: I I I I I I I I I C' /y """" -'~l. """ ~~_ ..... .11}1} S t .d " """:~: __. ''1<t "1 "'-'-"-,- )iit'(."."..~~ ~',- ~fc.~/ ',.~ "" "'~ "" " " ~"" ....... B6-12."."",,\ "...... ....... cuA:a \ '......... ............. SEE 2/"'1 \ .....-.......... ............. ~ ~:::::,\~ '1 :I""~ ! ............. i ...............,............. " " " " R "" 0""0 SLOPE ""7 i I "I , : hi ~i ~. FUTURE AODN. ~I 50,000 SF ~OO' ! ~J ,..' i I 360.00 1 A 1 SCALE. I" - 60'-0" NORTH o . . . 4E. HRA Agenda - 8/07/02 Consideration to approve entering into a Contract for Private Development among the liRA. the Citv. and Wurm Partnership L.L.P. A. Reference and background: The Contract for Private Development outlines the terms and conditions of 1'1 F assistance to the developer, Wurm Partnership L.L..P, dha Production Stamping, Inc. The Contract was drafted by Dan Greensweig, Kennedy & Graven, and a copy provided to the developer. Generally, the Contract is executed or agreed upon between the parties, prior to the City Council approving the establishment ofthe TIF District. The HRA agreed to reimhurse the developer up to $29S,000 of the $473,S84 land cost. Interest rate of7.2S%, The City agreed to waive or forgive a portion of the trunk fees, The developer agreed to construct a 60,000 sq ft office/ manufacturing facility on 7 acres of land located along East Chelsea Road. Jobs creation as noted in agenda item 4C arc itemized in the contract under job and wage goals, The construction commencement date is September IS, 2002, with completion by July 1,2003. The Council will be asked to approve the Contract on August 12,2002. A public hearing notice will appear in the local newspaper on August 8, 2002, relative to the TIF assistance and to comply with the business subsidy law, lhe developer must provide a copy of the purchase agreement, evidence of short and long term financing, evidence for "but [()r" test, and proof of insurances prior to issuance of the building permit. B. Alternative Action: 1, A motion to approve entering into the Contract for Private Development among the HRA, the City, and Wurm Partnership L.L.P.. 2, A motion to deny authorization to enter into the Contract ..,............,............. 3. A motion to table any action. C. Recommendation: Recommendation is Alternative No.1. D" Supporting Data. Excerpts of the Contract. . ..-..,..." , "---"-.'_ .__----.,.__ ._.----:::-:-_ .___ "..___ ____.... __. .____... __._. ,...__.__. ,.__.. __." ,.__. ___no ___ ,..-.., .."-",,.,-_.,--' -. .. __no ___. _. .'_n.__ __. ".__,. _____ .___ __., ._._ .___. .....---- --", .._.._n __ -" ..-. --- .-. .- _n___ -.-.- CONTRACT FOR PRIVATE DEVELOPMENT By and Among WURM PARTNERSHIPL.L.P. and . HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO and THE CITY OF MONTICELLO, MINNESOTA Dated as of: ,2002 _._. . ____=__.=" --"-'",,-,--,_-:-..,.,-...:...:.....-':"'" ___-'_,__=__- ,,-,-- _. '::_c....-::.-.::_:_-=---:--.-=-'-=::---c:-.:----:..::-~.:....:........"7""-'-. ..__. _"_.........:...--~::.~-"""' .,,--=':----c."'-...........:.=-"7'""""""'='~-:---::.....:.:...,=::--=-'- ""7...,..,~_..:..........::.-".:__;:=---:-=" _.:.........,...."c_';;' ,-- This document was drafted by: KENNEDY & GRA YEN, Chartered 470 Pillsbury Center 200 South Sixth Street Minneapolis, Minnesota 55402 . Telephone: (612) 337-9300 DJ(j,21 R51 ~v I MN 190,103 ARTICLE III . ::\,cq uisition of Property; Financial Assistance Section 3.1. Status of the Developmcnt Pro~. As of the date of this Agreemcnt. the Developer has entcred into a purchase agreement with a third party for the Development Property. The Authority shall have no obligation to purchase the Development Property or any portion thereo f. Section 3.2. Soil Conditions. The Devcloper acknowledges that neither the Authority nor the City makes any representations or warranties as to the condition ofthe soils on the Development Property or its fitness for construction of the Minimum Improvements or any other purpose for which the Developer may make use of such property. The Developer further agrees that it will indemnify, defend, and hold harmless the Authority, the City, and their governing body members, officers, agents, servants, and employees, from any claims or actions arising out of the presence, if any, of hazardous wastes or pollutants on the Development Property. The Developer's obligations under this Section 3.2 shall survive termination of this Agreement. . Section 3.3. Pavment of Administrative Costs. The Developer agrccs that it \ViII pay upon demand by the Authority, Administrative Costs (as hereafter defined). For the purposes of this Agreement. the term '"Administrative Costs" means out-of-pocket costs incurrcd by the Authority and attributable to or incurred in connection with the ncgotiationand preparation of this Agrecment and other documents and agreements in conncction with the development contemplated hereunder. Out-of-pockct Administrativc Costs shall be evidenced by invoices, statements, or othcr reasonable written evidence of the costs incurred by the Authority. As of the date of this Agreement, thc Developer has deposited $5,000 'vvith the Authority to be applied toward Administrative Costs. The amount by which this dcposit exceeds the Authority"s actual Administrative Costs, if any, shalL upon demand by the Developer. be returned to the Developer. but no earlier than the date on which the Developer recei ves a Certificate of Completion pursuant to Section 4.4 of this Agreement. Section 3.4. Financing of Land AcquJsition Costs. In order to makc development of the Minimum Improvements economically feasible, the Authority will reimburse the Developer for the Land Acquisition Costs in accordance with the following terms and conditions: (a) Subjcct to thc terms and conditions of this Agreement the Land Acquisition Costs will be rcimbursed to the Developer with simple interest thereon at 7.25% per annum, interest commencing to accrue on the date that thc Developer complies with thc cost certification requirement described in paragraph (f) of this Section. The Land Acquisition Costs will be reimbursed by the Authority to the Developcr in semi-annual installments payable on each February I and August 1 (""Payment Dates") commencing August L 2004 and concluding no later than the Termination Date. These payments will be made from Available Tax Increment as defined in this Section 3.4 and from no other source. . (b) 'fhe term "Available Tax Incremcnt" means 90% of the Tax Increment with respect to the Devclopmcnt Property as calculated by thc County and paid to the Authority during thc six D.lG-21l{51.hl ivlN 190-\03 7 months preceding any Payment Date. . (c) Ifon any Payment Date there is available to the Authority insufficient Available Tax Increment to pay the amounts due on such date, the amount of such defieiency shall be deferred and shall be paid. without interest thereon. on the next Payment Date on which the Authority has available to it Available 'J"ax Increment in excess of the amount necessary to pay the amount due on such Payment Date. (d) The Authority shall have no obligation to pay any portion of the Land Acquisition Costs that remains unpaid after the Termination Date. The Authority may prepay all or a portion of the Land Acquisition 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. . (t) At least 30 days before becoming 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 $295.000; (ii) that no Event of Default has occurred and is continuing under this Agreement and (iii) that the Developer has received a Certificate of Completion pursuant to Seetion 4.4 of this Agreement. The payment request certificate must be accompanied by evidence satishlctory to the Authority that the Land Acquisition Costs have been incurred and paid by the Developer. and without limitation of the foregoing. must include a copy of the purchase agreement, a certificate of real estate value evidencing the purchase price paid by the Developer for the Development Property. and evidence reasonably satisfactory to the Authority that the purchase price did not exceed the fair market value of the Development Property at the time of the Developer's acquisition of it. (g) The Authority makes no warranties or representations that Available Tax Increment will be sunicient to pay the Land Acquisition Costs. The Developer agrees and understands that A vailable Tax Increment is subjeet to calculation by the County and change in State law. and that a significant portion of Land Acquisition Costs may remain unpaid after the Termination Date. The Developer further agrees and understands that estimates of Available Tax Increment provided py the Authority and its agents. officers, or employees are estimates only and not intended for the Developer's reliance. Section 3.5. Busin~.:>s Subsic!y Agreemen!. The provisions of this Section constitute the "business subsidy agreement.' bet'vveen the Developer and the Authority and between the Developer and the City. for the purposes of the Business Subsidy Act. (a) General Tenn.\'. The parties agree and represent to each other as follows: . (I) The subsidy provided to the Developer by the Authority consists of payments to the Developer for Land Acquisition Costs pursuant to this Agreement and the wai vel' by the City of certain sewer and water trunk fees. These payments and waivers represent a forgivable loan that is repayable by the Developer in accordance with this Section. The [)/C;-21l{51-h I MN190.I03 8 . . . payments under Section 3.4 are payable from a portion ofthc Tax Increments from the TIF District, an econom ic development tax increment financing district. (2) The public purposes of the subsidy are to promote development of a manufacturing facility in the City. increase manufacturingjobs in the City and the State, and increase the tax base of the City and the State. These public purposes predominate over any incidental benefit received by the Developer as the subsidy is provided solely to inducc the Developer to construct the manufacturing improvements. (3) The goals for the subsidy are: to secure development of the Minimum Improvements on the Development Property; to maintain such improvements as a manufacturing facility for at least five years as described in clause (6) below; and to create the jobs and wage levels in accordance with Section 3.5(b) hereof. (4) If the goals described in clause (3) are not met, the Developer must make the payments to the Authority and City described in Section 3.5(c). (5) The subsidy is needed because land acquisition costs make development of the Minimum Improvements infeasible without public assistance, all as determined by the City upon approval of the TIF Plan. (6) The Developer must continue operation of the Minimum Improvements as a manufacturing facility for at least five years aftcr the date of issuance of the certificate of completion. (7) The Developer does not have a parent corporation. (8) The Developer expects to receive the following additional public assistance in connection with the Minimum Improvements:~. (b) Job and {Vage Goals. Within two years after the date of issuance of the Certificate of Completion of the Minimum Improvements (the "Compliance Date"), the Developer shall cause to be creatcd at least 35 new full-time equivalent jobs on the Development Property (the "New Jobf) and shall causc the wages tor the New Jobs to be as follows: (i) at least II New Jobs shall pay no less than $10.00 per hour. exclusive of benefits; (ii) at least 5 Ncw Jobs shall pay no lcss than $12.00 per hour. exclusive of benefits; (iii) at least 8 New Jobs shall pay no less than $14.00 per hour, exclusive ofbcnetits; (iv) at least 5 New Jobs shall pay no less than $16.00 per hour. exclusive of benefits: (v) at least 1 New Job shall pay no less than $18.00 per hour, exclusive of benefits; (vi) and at least 5 New Jobs shall pay no less than $22.00 per hour, exclusive of benefits. Notwithstanding anything to the contrary herein. if the wage and job goals described in this paragraph arc met by the Compliance Date, those goals are deemed satisfied despite the Developer"s continuing obligations under Sections 3.5(a)(6) and 3.5(d). (c) Remedies. If the Developer fails to meet the goals described in Section 3.5(a)(3). the Developcr shall repay (I) to the Authority upon written demand from the Authority a .'pro rata share" of the amount of any payments made to the Developer undcr Section 3.4 hereof. (2) to the DJ(j-ng51-hl MNIl)O-IOJ 9 . City upon written demand from the City a "pro rata share" of the amount orany fee waivers granted by the City under Section 3.7, and (3) to the Authority and City. respectively, interest on the amounts in clauses (1) and (2) at the implicit price deflator as defined in Minnesota Statutes, Section 116J994, subd. 6. accrued from the date of issuance of the certificate of completion to the date of paymcnt. The term "pro rata share" means percentages calculated as follows: (i) if the failure relates to the number of jobs, the jobs required less the New Jobs created, divided by the jobs required; (ii) if the failurc relates to wages. the numbcr of jobs required less the number of jobs that meet the required wages, divided by the number of jobs required; (iii) if the failure relates to maintenance of the Minimum Improvements in accordance with Section 3.5(a)(6). 60 less the number of months of operation as a metals recycling facility (where any month in which the facility is in operation for at least 15 days constitutes a month of operation), commencing on the date of the certi ficatc of completion and ending with the date the facility ceases operation as determined by the Authority, divided by 60: and (iv) if more than one of clauses (i) through (iii) apply, the sum of the applicable percentages. not to exceed 1 00%. . Nothing in this Section shall be construed to limit the Authority's or City's remedies under Article IX hereof. In addition to the remedy described in this Section and any other remedy availablc to the Authority or City for failure to meet the goals stated in Section 3.5(a)(3), the Developer agrees and understands that it may not receive a business subsidy from the Authority. the City, or any other "grantor" (as defined in the Business Subsidy Act) for a period offive years from the date of the failure or until the Developer satisfies its repayment obligation under this Section, whichever occurs tirst. (d) Reports. The Developer must submit to the Authority a written rcport regarding business subsidy goals and results by no later than March of each year, commencing March I, 2003 and continuing until the later of (i) the date the goals stated Section 3.5(a)(3) are met: (ii) 30 days after expiration of the five-year period described in Section 3.5(a)(6); or (iii) if the goals are not met, the date the subsidy is repaid in accordance with Section 3.5(c). The report must comply with Section 116J. 994, subdivision 7 of the Business Subsidy Act. The Authority will provide information to the Developer regarding the required forms. If the Developer fails to timely tile any report requircd under this Section, the Authority will mail the Developer a warning within one week after thc required tiling date. If. after 14 days of the postmarked date of the warning. the Developer t~lils to provide a report the Developer must pay to the Authority a penalty of $100 few each subsequent day until the report is tiled. The maximum aggregate penalty payable under this Section $ 1,000. (e) Alldits. Upon written request of the Authority or City in any year, the Developer shall retain at its expense an independent third party accountant to audit any job and wage report . DJG-21 1\51.jv I MNll)O-I03 10 . . . submitted by the Developer under paragraphs (d) or (t) of this Section. The Developer must deliver to the Authority a written report from the accountant promptly upon eompletion of such audit. Section 3.6. Use of Tax Increment. Exeept as set forth herein, the Authority shal1 have no obligation to the Developer with regard to its use of Tax Increment and may use Tax Increment for any lawful purposes, whether set forth herein or otherwise. Section 3.7. Fee Waivers for Water and Sewer. The Developer acknowledges that sewer and water trunk fees (the "Trunk Fees") imposed by the City on a development the size of the Minimum Improvements would normally total $67,116. The City hereby agrees to waive $41,670 of these Trunk Fees. The Developer shall, at its option, pay the remaining $25.446 of Trunk Fees upon: (i) issuance of a building permit for the Minimum Improvements; or (ii) as assessed against the Minimum Improvements over a period of 10 years, with 6.5% interest accruing on such assessments; provided that the Developer will provide the City with written confirmation of which of these two Trunk Fee payment options it has selected and shall take such actions as are necessary to effect its selected payment option prior to issuance of a building permit for the Minimum Improvements. DJG.21 R51-lv I MN 190.JOj 11 . . . ARTICLE IV Construction of Minimum Improvements Section 4.1. Construction of Improvements. The Developer agrees that it will construct the Minimum Improvements on the Development Property in accordance with the approved Construction Plans and at all times during the term of this Agreement, will operate and maintain, preserve and keep the Minimum Improvements or cause such improvements to be maintained, preserved and kept with the appurtenances and every part and parcel thereof in good repair and condition. The Authority shall not have any obligation to operate or maintain the Minimum Improvements. Section 4.2. Construction Plans. (a) Before commencement of construction of the Minimum Improvements. the Developer shall submit to the Authority Construction Plans. The Construction Plans shall provide for the construction of the Minimum Improvements and shall be in conformity with the Redevelopment Plan, this Agreement. and all applicable State and local laws and regulations. The Authority will approve the Construction Plans in writing if: (i) the Construction Plans conform to the terms and conditions of this Agreement; (ii) the Construction Plans conform to the goals and objectives of the Redevelopment Plan; (iii) the Construction Plans conform to all applicable federaL state and local laws. ordinances, rules and regulations; (iv) the Construction Plans are adequate to provide for construction of the Minimum Improvements: (v) the Construction Plans do not provide for expenditures in excess of the funds available to the Developer from all sources for construction of the Minimum Improvements; and (vi) no Event of Default has occurred. Approval may be based upon a review by the City's Building Official of the Construction Plans. No approval by the Authority shall relieve the Developer of the obligation to comply ',,'lith the terms of this Agreement or of the Redevelopment Plan. applicable federal. state and local laws, ordinances. rules and regulations. or to construct the Minimum Improvements in accordance therewith. No approval by the Authority shall constitute a waiver of an Event of Default. If approval of the Construction Plans is requested by the Developer in writing at the time of submission. such Construction Plans shall be deemed approved unless rejected in writing by the Authority, in whole or in part. Such rejections shall set forth in detail the reasons therefore, and shall be made within 10 days after the date of their receipt by the Authority. If the Authority rejects any Construction Plans in whole or in part. the Developer shall submit new or corrected Construction Plans within] 0 clays after written notification to the Developer of the rejection. The provisions of this Section relating to approval. rejection and resubmissionof corrected Construction Plans shall continuc to apply until the Construction Plans have been approved by the Authority. 'The Authority's approval shall not be unreasonably withheld. Said approval shall constitute a conclusive determination that the Construction Plans (and the Minimum Improvements constructed in accordance with said plans) comply to the Authority.s satisbction with the provisions of this Agreement relating thereto. (b) I f the Developer desires to make any Material change in the Construction Plans after their approval by the Authority. the Developer shall submit the proposed change to the Authority for its approval. If the Construction Plans. as modified by the proposed change. conform to the requirements of this Section 4.2 of this Agreement with respect to such previously approved D.I(j.~ I S51h I rvlN 190.1 OJ ]2 . Construction Plans. the Authority shall approve the proposed change and notify the Developer in writing of its approval. Such change in the Construction Plans shall, in any event. be deemed approved by the Authority unless rejected. in whole or in part, by written notice by the Authority to the Developer. setting liJrth in detail the reasons therefor. Such rejection shall be made within ten (10) days after recei pt 0 f the notice of such change. The Authority's approval of any such change in the Construction Plans will not be unreasonably withheld. Section 4.3, Commcncement and Completion of Construction. Subject to Unavoidable Delays. the Developer shall commence construction of the Minimum Improvements by 200 _' Subject to Unavoidable Delays, the Developer shall complete the construction of Minimum Improvements by , 200_. All work with respect to the Minimum Improvements to be constructed or provided by the Devcloper on the Development Property shall be in conformity with the Construction Plans as submitted by the Developer and approved by the Authority. . The Developer agrees for itself, its successors and assigns, and every successor in interest to the Development Property, or any part thereof: that the Developer. and such successors and assigns. shall promptly begin and diligently prosecutc to completion the development of the Development Property through the construction of the Minimum Improvements thereon, 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 property and be binding upon all successors and assigns to the Development 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 bc requested by the Authority, as to the actual progress of the Developer with rcspect to such construction. Section 4.4. Certificate of Completion. (a) Promptly after completion of the Minimum Improvements in accordance with those provisions of the Agreement relating solely to the obligations of the Developer to construct the Minimum Improvements (including the dates lor beginning and completion thereof), thc Authority will furnish the Developer with a Certificate shown as Exhibit B. 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 loancd to finance thc Minimum Improvements, or any part thereof. (b) If the Authority shall rcfuse 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 Dcveloper with a written statement. indicating in adequate detail in what respects the Developer has failcd to complete the Minimum Improvemcnts in accordance with the provisions of the Agreement. or is otherwise in default. and what measures or acts it will be necessary, in the opinion of the Authority. tor the Developer to take or perform in order to obtain such cel1ification. . (c) The construction of the Minimum Improvements shall be deemed to be complete upon issuance of a certificate of occupancy by the City for. and the opening tor business of. the Minimum Improvements. D.I( i-~ I X51.~\ I IVINIl)().1()3 13 . . . HRA Agenda - 8/07/02 5. Consideration to review and discuss the revised McComb Development Feasibility Financial Analvsis. to hear proposed development bv the Development Team. and to negotiate level of '1'1 F assistance for the proposed project. A, Reference and Background: First, Stevc Johnson intormed mc that Jim McComb was revising the numbcrs within the Financial Analysis. I contacted Jim McComb to reccive in advance a copy of the revision in order f()t' the HRA Commissioncrs and Mark Ruff, Ehlers & Associates, to rcview the changes prior to our workshop scheduled fix 5:00 p.m. Johnson also informed me that he would have a Development Team at thc meeting and that Springborg sold his building and busincss. Mr. McComb said he was expccting revised construction numbers from the Dcvelopmcnt Team and would hope to have the revisions to me on Tuesday or Wcdnesday, August 6 or 7. I attached a copy of the 2001 TIF Report tor TIF District No. 1-22 which identifies the fund balance as of Deccmber 31,200 I. Revenues do include thc 200 I Temporary Bond and expenditures include pay-ofT of city loans for purchase of homes along front Street, community center commitmcnt, and pathway along Sunny Frcsh and the railroad tracks. However, the $52,500 remaining O'Connor cost was paid in 2002, the HRA has committcd $75,000 for parking development associated with Landmark Square project, and Fluth/Cub and Fluth/Landmark Square projects arc pay-as-you-go. Next ycar, the four-ycar knock down rule will be in afTect mcaning a lesser amount of tax increment is expected. Tax incrcment from 'T'l F District No. 1-23 (Midwest Graphics) is also pledged t\.1r payment of the Temporary Bond. Tax Increment Financing District Report For the Year Ended Decem ber 31, 2001 . Tax Increment Financin!! District No_ 1-22 Tax Increlnent Financing District Name Downtown District Common Name 6n County Number(s} Wright County When: TIF District is Located City of Monticello Municipality That Approved TIF District Monticello CitylTown Where TIF District is Located City of Monticello TIF Authority Rick Wolfsteller TIF Authority's Authorized Representative Administrator Title (763) 295-2711 Phone Number Citv of Monticello Employer of Authoriz<:d Representative (if dilkrent Irom TIF Authority) 505 Walnut Street. Suite I Address Monticello City MN State 55362 Zip Code I. TIF District type (check one): D Pre-1979 D I-lousing [g] Redevelopment D Mined Underground Space D Economic Development D Uncodified Law, specified: D Renewal and Renovation D Soils Condition Year Chapter Artick Section 2. Is this a "Qualified Housing District" as defined in Minn. Stat. Sec. 273.1399 (2000)'1 DYes [g] No . 3. TIF plan approval date A. Orig inal .............................. .................... .......... ..................... ,................... ............. ....... ....... 03/10/1997 B. Moditlcation(s)..._.... ~N/A 4. Certification request dates* A. Original.............. ............. ..... ......... .................... ,-. ................... ......... .... ............... ...... ..... ...... 06/25/1997 L8J N/ A [g] N/A B. Geographic Enlargement(s) C. Hazardous Substance Subd istricl................. ... ..-....-............... ........ ................ ...... .......... ....... Nok: · Thc ecrtitication requ<:st date is the date the TIF authority requcsted the county auditor to certitY the original net ta:\ capacity of the TIF district It is NOT the dale of the adoption ofth.: TIF plan or the date the county auditor actually certitied the original net tax capacity oftne TIF district. For a rcquest nHlilcd to the coul1ly auditor_ it is the postmark date on themailingenvdope_rorarequ<:sthandddiv.:redtothecountyauditor.itis the delivery date. This dat.: is critical in the application ofvarious TIF laws. therdore it should agree with th.: county auditor's records_ 5. Certification date A. Original................. .............. .......... ............. ............ ........... ............. ...................................... 06/30/1997 B. Geographic Enlargement(s) [g] N/ A C. Hazardous Substance Subdistricl............................-............................................................. k2J N/A 6. Month and year tirst tax increment payment received (actual or anticipated) ............................. 0711999 7. Date of required decertification ......................................_........................._................................... 12/31/2024 8. Actual decenilication date .........................................................,.......-.......................................... [Z;J N/A . . Tax Capacity for Taxes Payable in 200t Not ^pplicable 0 Value 9. Current net tax capacity + $651,877 10. Original net tax capacity - S4-80.359 II. Captured net tax capacity == $171.518 12. Fiscal disparity deduction, if applicable - $0 13. Captured net tax capacity shared with other taxing jurisdictions - $0 14-. Captured net tax capacity retained by TI F authority == $171,518 15. Is this TIF district is located in a fiscal disparities area and is it under option A? DYes $ DNo ~N/A [g] N/A 16. If yes, indicate the amount of total tax increase from the Commissioner of Revenue Fiscal Disparities Contribution Statement 17. Does the TIF plan or other governing document permit tax increment to be expended: A. To pay bonds, the proceeds of which were or may be expended on activities located outside the TIF district? B. For deposit into a cOlTImon fund that may expend money on activities located outside the TIF district'? C. To otherwise finance activities located outside the TfF district? ~Yes DNo DYes ~No k2J Yes DNo DYes ~No 18. Has the lTIunicipality created a special taxing district for this TIF district? . Tax Increment Rebates or Payments (Direct or Indirect) Not Applicable ~ I Accounted for 2001 in Prior Years Amount 19. To governmental units other than the municipality SO $0 20.A Value of in-kind benefits to other governmental units (describe) SO SO 20_8 (describe here) $0 SO 20.C (descrobe here) $0 SO 20.D (describe here) SO $0 20.E (describe here) $0 $0 21. For activities and improvements outside TIF district $0 $0 22. Total $0 " $0 Real Eshlte Transactions Not Applicable ~ Cost to TI F Price Paid Property Sold to Developer from Beginning of TI F District Authority by Developer 23.A SO SO 23.B SO SO 23.C SO SO 23.0 SO SO 23_E $0 SO . TIF District Name: Tax Increment Financing District No, 1-22 2001 TIF District Report ~ Page 2 Operating Statement A. B. C. D. Revenues and Other Financing Sources (OFSs) Ori\i.inal TI/-'-l'lan Cumulativ<: iVloditi<:d i\C<.:ountcd 1'01' in Butlg<:t Amount TIF-Plan Budgd Prior Y <:ars 2001 Amount n ['ax in<.:r<:ment 1'<:\ <:nu<: $39.000.()OO $0 $150.396 $184.972 ?- 1i1lcrcst on in \ <:sted funds $0 $0 $1.165 $4- 1.14-0 . _J. 16. Bond pro<.:e<:us $0 $0 $0 $1.150.000 17. Loan pro<.:<:<:ds $0 $0 $56"+68 $0 18. Sp<:cial assessm<:nts $0 $0 $0 SO 19. Saks/kasc pro<.:e<:ds $0 $0 $1-'1-.398 $1 ..+82 30. Loan/au\an<.:e repayments $0 $0 $0 $0 31. Grants $0 $0 $0 $0 32.A Other Lo<.:al Contribution $950.000 $0 $0 $0 31.8 T1F Application f<:e $0 $0 $13.000 $5.000 32.C Other Additional T1F Fees $0 $0 $4.717 $0 310 Loan Sch I id uownpaym<:nt $0 $0 $20.674- $0 31.E Other $0 $0 $0 $0 32.F Other (cks<.:ribe here) $0 $0 $0 $0 32.G Oth<:r (desnibe h<:re) $0 $0 $0 $0 31.H Other (ckscribe here) $0 , $0 $0 $0 33. Transfers in (from line 65) $0 $0 $0 $0 34. Total Revenue and OFSs $39,950.000 $0 $160.918 $1.381.594- Expenditures and Other Financing Uses (OFUs) 35. Lanu/building a<':l)uisition $4-.175.000 $0 $54-7.106 36. Sit<: impro\'cmentsipr<:paration <.:osts $4-.275.000 $0 $0 37 Install,ltion of pllhli<.: llliliti<:s $4.175.000 $0 $16.381 3S. Parking t~lciliti<:s $4.275.000 $0 $0 39. Str<:<:ts and sidc\\alks $0 $0 $0 $0 40 PlIhli<.: park i'acilities SO $0 $0 SO 41. So<.:ial. rcncational <lr <.:onf<:rcnc<: l~lCilitics $0 $0 $11.150 $158.750 41. Intcrcst redll<.:tion pa> mcnls $0 $0 $0 $0 43. Bonu principal paYIl1<:nts $0 $0 $0 $0 -'1--'1-. Bond int<:rcst payments SO $0 $0 $0 45. Lo,ln prin<.:ipal pa> mcnls $0 $0 $0 $0 46. Loan/note int<:r<:st paym<:nts $10.000.000 $0 $0 $0 47. Administrati\c e"p<:nscs $1.900.000 $0 $37.574 $49.113 48.A Dth<:r Costs of Lo<.:al Contribution $950.000 $0 $0 $0 4-8.B Otlwr ..\ppli<.:ation Fee R<:imbuL $0 $0 I $3.000 $0 -'1-8.C Othcr Prop<:rty Tax SO $0 $3.673 $1.111 -'1-8D BBFProj<:<.:l I intcrest SO $0 $6.691 $18.766 -'1-81; Other S<.:h lid <.:I'll payment $0 $0 $10.154 $0 ..1ST Olh<:r Ila\\tins loan pnym<:nls SO $0 $5.000 $56.737 4-8(; Bond Closing/Paying i\g<:nt Fee SO $0 $0 $33.115 48.11 S<.:hlid Loan $0 $0 $5.367 $17.309 49. r ransfcr,; <Hit (froll1line 69) SO $0 $0 $0 50. Tot;tl Expenditures and OFUs $39.950.000 $0 $159.851 $9'18.589 51. Revenucs Over (lnder) Expenditures So $0 $101.066 51.384.005 5:!. Fund Balancc - 12/31/2000 5101.066 53. Fund Balnnce - 12/31/2001 $l.4?5.071 TIF District Name: Tax Increment Financing District No. 1~22 2001 TIF District Report - Page 3 Balance Sheet Assets As of 12/31/2000 $108,163 $215 $0 $0 $0 $108,378 As of 12/31/2001 $1,485,071 $0 $0 $0 $0 $1,485,071 54. Cash 55. Due from other funds 56.A Other assets 56. B Other assets 56.C Other assets 57. Total Assets Liabilities 58. Due to other funds 59. A Other liabilities 59.B Other liabilities 59.C Other liabilities 60. Total liabilities 61. Fund balance 62. Total liabilities and fund balance $0 $0 $0 $0 $0 $0 $1,485,071 $1,485,071 $2,312 $5,000 $0 $7,312 $101,066 $108,378 Transfers Not Applicable rz:;J Transfers In - From Other TIF Districts or Funds 63. From other TI F districts A. B. C. 64. From other funds A. B. C. 65. Total Transfers In (to line 33) Accounted for in Prior Years 2001 Amount $0 $0 $0 $0 $0 $0 $0 $0 $0 SO $0 $0 $0 $0 Transfers Out - To Other TIF Districts or Funds 66. To other TI F districts A. $0 $0 B. $0 $0 67. Tax increment to other funds A. $0 $0 B. $0 $0 68. Non-tax increment to other funds A. $0 $0 B. $0 $0 69. Total Transfers Out (to line 49) $0 $0 . TIF District Name: Tax Increment Financing District No. 1-22 200 I TI F District Report ~ Page 4 . Interest and Investment Earnings Not Applicable D On or before 7/1/97 On or After 7/2/97 70. Interest/investment earnings received $0 $42,405 Property Sales/Leases and Advance/Loan Repayments Not Applicable D i On or before 6/30/97 I On or After 7/1/97 71. Proceeds from sale or lease of property I $0 I $15,880 i i 72, Repayment of advances and loans (exclude interest) I $0 I $0 Outstanding Non-Pooled TIF Bonds and Other Financial Obligations Not Applicable 0 TlF Bonds Other General Obligation Revenue Financial Obligations 73. Issue amount(s) $2,116,885 $0 $910,142 74. Principal paid in 2001 $0 $0 $390,038 75. Interest paid in 2001 $0 $0 $26,385 76. Outstanding 12131/200 I $4,233,770 $0 $500,000 77. Principal due in 2002 $0 $0 $0 78. Interest due in 2002 $108,724 $0 $0 79. Amount of tax increment held that is dedicated to the payment of non-pooled TIF bonds. $0 rz:;J NI A . 80. Is amount on line 79 held in an escrow account? DYes D No ~ N/A 81. I f refunding bonds have been issued, indicate year(s) refunding occurred: r8J N/A 82. I f pay-as-you-go financing is being used, report the amount of documented developer costs incurred through December 31,200 I $500,000 o N/A 83. 1 f property owners have received reimbursement of special assessments. report the amount reimbursed through December 3 I, 2001 $0 ~ N/A 84. If the TIF district has special legislation, please specify the year, chapter, article, and section of the law. [g] N/ A Ycur Chapter Section Artide 85. Include a copy of the annual disclosure statement as required by Minn. Stat. Sec. 469.175, subd. 5 to be published in a local newspaper. (TIF reports are incomplete if the annual disclosure statement is not submitted or does not include all required elements.) Write the name of the local newspaper in which the annual disclosure statement was or will be published. Indicate the actual or anticipated date of the publication of the annual disclosure statement. Monticello Times Nallle or Loeal Newspaper 8/8/2002 Date of PublicJtion (aetuulor ,mlicipat<':o) . TIF District Name: Tax Increment Financing District No. 1-22 200 I TIF District Report - Page 5 . Ollie Koropchak Name of Preparcr Citv of Monticello Employer of Preparer Rick Wolfsteller Name ofTIF Authority's Authorized Representative Citv of Monticello Employer ofTIF Authority's Authorized Representative Sig~Ul~S~e rick. wolfstellerilVci.monticello.mn.us Email Address ofTIF Authority's Authorized Representative Please complete and return by August I to: . . HRA Executive Director Title Adm inistrator Title t"')-)t-~ Date Office of the State Auditor Tax Increment Financing Division 505 Spruce Tree Centre 1600 University A venue W St. Paul, MN 55104 TI F District Name: Tax Increment Financing District No. 1-22 (763) 271-3208 Pholl!:': Numbl:':r (763) 295-4404 Fax Number (763) 295-1711 Phone Number (763) 295-4404 Fax Number Phone: (651) 642-0767 200 I TI F District Report - Page 6 . Kennedy & Graven, Chartered 200 South Sixth Street Suite 470 Minneapolis, MN 55402 (612) 337-9300 July 2, 2002 Statement No. 52451 City of Monticello Accounts Payable 505 Walnut Street, Suite 1 Monticello, MN 55362 Through June 30, 2002 "J'l- ~'L..O MN190-00091 TIF 1--26 (~e~",OIII;1.. D~v"lo"1'I1~nt) MN190-00095 Masters Fifth Avenue TIF 125.00 45.00 MN190-00098 Hans Hagen TIF Contract 464.00 MN190-00099 TIF District 1/30/2002 Housing TIF MN190-00100 TIF District 1-31 - UMC Project . MN190-00101 General HRA Matters MN190-00103 Wurm Partnership Project- TIF 1-32 2,546.00 2,347.50 120.00 1,260.00 Total Current Billing: 6,907.50 I declare, under penalty of , account, claim or nd is just and correct and that no of it has been paid. ~ ~ t~, ~ o '-\~O r'\--?- Signature of Claimant . . Kennedy & Graven, Chartered 200 South Sixth Street Suite 470 Minneapolis, MN 55402 (612) 337-9300 41-1225694 July 2, 2002 Invoice # 52451 City of Monticello Accounts Payable 505 Walnut Street, Suite 1 Monticello, MN 55362 J')').-- MN190-00091 TIF 1-2t!l...fEwlluR'lls De.....lul-'lIIent) ~ ?l ~. l.tt. ~ ~ S:.. 3a LLo Through June 30, 2002 For All Legal Services As Follows: 6/4/2002 JKP Researched whether contingency contract is binding b/w parties prior to performance of contingency Hours 6.00 Amount 107.14 6/5/2002 JKP Drafted memo regarding Contingency Contracts Total Services: 1.00 $ 17.86 125.00 . Total Services and Disbursements: $ 125.00 . . Page: 2 Kennedy & Graven, Chartered 200 South Sixth Street Suite 470 Minneapolis, MN 55402 City of Monticello June 30, 2002 "1> 0 "-\ 0 S~S. ~V '?-\ "3 . MN190-00095 Masters Fifth Avenue TIF Through June 30, 2002 For All Legal Services As Follows: 6/3/2002 OJG Telephone conference with Q. Koropchak regarding contract issues Hours 0.30 Total Services: $ Amount 45.00 45.00 Total Services and Disbursements: $ 45.00 . . . Page: 7 Kennedy & Graven, Chartered 200 South Sixth Street Suite 470 Minneapolis, MN 55402 City of Monticello June 30, 2002 n.Q.W MN190-00103 Wurm Partnership Project- TIF 1-32 Through June 30, 2002 For All Legal Services As Follows: 6/25/2002 DJG draft contract for private development 6/27/2002 DJG draft contract for private development Total Services: 'U\ ~\ \ -\<' 1 ~\~ ~ ,'4 Q. (VS"J I'J... ":)..- ~ \,y.. ~ \ _ v S\~ Hours 3.60 4.80 $ Amount 540.00 720.00 1,260.00 . Total Services and Disbursements: $ 1,260.00 . . Page: 3 Kennedy & Graven, Chartered 200 South Sixth Street Suite 470 Minneapolis, MN 55402 City of Monticello June 30, 2002 '-\~ ?\~ .. '?:> 0 4 '0 S~3. MN190-00098 Hans Hagen TIF Contract Through June 30, 2002 For All Legal Services As Follows: Hours Amount 6/4/2002 CBR Intraoffice conference; e-mail and faxes to Hans Hagen 1.10 104.50 Homes and client; review contract 6/5/2002 CBR Revise closing documents; intraoffice conference 0.40 38.00 6/10/2002 BDS Research relocation assistance responsibility issue. 0.40 54.00 6/13/2002 CBR Review correspondence; intraoffice conference; phone call 1.30 123.50 .to Hans Hagen Homes; revise deed; e-mail documents 6/17/2002 CBR Revise deed and e-mail to client; phone calls to title 1.00 95.00 . company; e-mails to Hans Hagen Homes 6/26/2002 DJG Prepare assessment agreement 0.30 45.00 Total Services: $ 460.00 For All Disbursements As Follows: Fax Total Disbursements: $ 4.00 4.00 Total Services and Disbursements: $ 464.00 . . Page: 4 Kennedy & Graven, Chartered 200 South Sixth Street Suite 470 Minneapolis, MN 55402 City of Monticello MN190-00099 TIF District 1/30/2002 Housing TIF ?'~' ~o'40 ". -;,0. L..\ V "'? June 30, 2002 Through June 30, 2002 For All Legal Services As Follows: Hours Amount 6/6/2002 DJG Prepare contract for private development 3.60 540.00 6/7/2002 DJG Prepare contract for private development 4.60 690.00 6/8/2002 OJG Prepare contract for private development 2.90 435.00 6/17/2002 OJG Prepare contract for private development 3.20 480.00 6/18/2002 DJG Prepare contract for private development and cover memo 0.90 135.00 regarding same . 6/24/2002 DJG Telephone conference with cMHP attorney regardin~ 0.60 90.00 contract changes; review and revise contract accordingly 6/26/2002 RJL Intraoffice conferences re relocation issue; review 0.30 51.00 negatives 6/26/2002 BOS Research relocation regulations. 1.30 17.47 6/27/2002 BDS Research at Hennepin County Law Library; research 4.10 55.11 online on relocation issues. 6/28/2002 BOS Meet with B Lindall; research caselaw; draft 3.90 52.42 memorandum. Total Services: $ 2,546.00 Total Services and Disbursements: $ 2,546.00 . . Page: 5 Kennedy & Graven, Chartered 200 South Sixth Street Suite 470 Minneapolis, MN 55402 City of Monticello June 30, 2002 \ ~oY() ~'t> · '-\~ ?\~ . MN190-00100 TIF District 1-31 - UMC Project Through June 30, 2002 For All Legal Services As Follows: 6/18/2002 OJG Prepare contract for private development . Total Services: Hours Amount 5.80 870.00 2.50 337.50 4.90 735.00 3.00 405.00 $ 2,347.50 6/18/2002 JKP Began drafting CPD b/w Family Limited Partnership, City and HRA DJG Prepare contract for private development JKP Finished drafting CPO; proofread CPO and made changes to it 6/19/2002 6/19/2002 Total Services and Disbursements: $ 2,347.50 . . Page: 6 Kennedy & Graven, Chartered 200 South Sixth Street Suite 470 Minneapolis, MN 55402 City of Monticello June 30, 2002 t ~O'YO L\ \c ,"?O ~ ~\'?~ MN190-00101 General HRA Matters Through June 30, 2002 For All Legal Services As Follows: 6/12/2002 DJG Telephone conference with O. Koropchak regarding Wells Fargo/library swap, Fluth contract, and bidding requirements 6/26/2002 DJG Telephone conference with O. Koropchak regarding various development and revolving loan fund issues Total Services: . Total Services and Disbursements: $ . Hours 0.30 0.50 $ Amount 45.00 75.00 120.00 120.00 . City of Monticello June 30, 2002 Page: 2 Kennedy & Graven, Chartered 200 South Sixth Street Suite 470 Minneapolis, MN 55402 MN 190-00089 Acquisition of 218 Front Street/O'Connor Through June 30, 2002 For All Legal Services As Follows: 6/10/2002 RJL Voicemail from D. Greensweig; intraoffice conferences re relocation regulations Intraoffice conference re status of file . ~\ 1; , . 6/14/2002 RJL CBR 6/18/2002 <b~~ L.\1.7 Phone calls; intraoffice conference; e.mails re release of mortgage ,?o'-tO Total Services: Hours 0.20 0.10 2.30 $ Total Services and Disbursements: $ Amount 30.00 15.00 218.50 263.50 263.50 . Kennedy & Graven, Chartered 200 South Sixth Street Suite 470 Minneapolis, MN 55402 (612) 337-9300 41-1225694 July 16, 2002 Invoice # 52700 City of Monticello Accounts Payable 505 Walnut Street, Suite 1 Monticello, MN 55362 MN190-00001 General Through June 30,2002 \.. "? ~ ~..l..rr- .." For All Legal Services As Follows: ~ ~\.~-'\ '\t~..,~>"'r+r~Hours 6/3/2002 OJG Telephone conference with Les Wurm regarding revenue 0.20 bond financing C. /4/2002 DJG Telephone conference with O. Koropchak regarding T J Martin contract issues 6/5/2002 OJG Prepare presentation and attend Monticello HRA meeting 3.80 0.20 Total Services: $ For All Oisbursements As Follows: Photocopies Total Disbursements: L\l, C; () O. ~ \ ~ · ~O LJ () Total Services and Disbursements: $ . Amount 30.00 30.0"0\ 570.00J 630.00 $ 0.60 0.60 630.60 . City of Monticello Accounts Payable 505 Walnut Street, Suite 1 Monticello, MN 55362 Through June 30, 2002 MN 190-00001 General Kennedy & Graven, Chartered 200 South Sixth Street Suite 470 Minneapolis, MN 55402 (612) 337-9300 July 16, 2002 Statement No. 52700 MN190-00089 Acquisition of 218 Front Street/O'Connor . Total Current Billing: I declare, under penalty of law, that this account, claim or demand is just and correct aod thaI no part of ~ SignalU~ . ~ ~ ~ ... 0 r"J.- ') .- "'Y Y 630.60 263.50 894.10 / i ,< . ''';;;'S"''i':,;...,.~{(.,,,:;...:, -,;""if'2+c~~:~;:;:;;''?-;~;"",,,o:.;t.;:, .. :::.....Yl< INVOICE 11 CLIENT: 011 i e I<:eor'c'pchak City eor Meonticelleo Public Weorks Department 909 Golr Ceourse Reo ad Monticello, MN 55362 Pa'.;;Je :#: ...,. .::.. INV. DATE: INVOICE "# PRO~JECT :# CLIENT It : CLIENT REF: 07/08/02 211093 BDXX-02-140E M06994 CONSULTING SERVICES DETAIL Techniciar, II Gseologist Heours 2.00 .50 RATE 60.00 85.00 Amount 120.00 42.50 2.50 162.50 NON-SALARY EXPENSES DETAIL D; t-'ect E:<penses Labeoratory Testing 5.:;.1 ids, T.;:.ta 1 Sed 1 BETX/MTBE (Purge and Trap) 5,;:, i 1 .Diesel Range Organics (DRO) 5';:0 i 1 Glty Rate Amclunt 30.00 80.00 1.0000 1 . 0000 30.00 80.00 80.00 1.0000 80.00 -----------.... 190.00 Total 352.50 ** Total Project BDXX-02-140E 352.50 ------------- ------------ .ease pay from this invoice. rms: Due on receipt, 1'12% per month after 30 days, 18% annual percentage rote. [ZJ .~ VISA. . We accept ING ERING'AND ENVIRONMENTAL SOLUTIONS SINCE 1957. BRAUN INTERTEC "" ,< . ", ' , "" '" '" ' "; ,.'''~ ' " ,>.;');'r;~k" ;~:i!: .."."^,, .. B'a~o :0:0"00 c:.,o""onc ~'1~i,~~~~~~c~lf][ 11 NW 7644 . P.O. Box 1450_"~.,':..'\'"-.,:,;'":""",\,,:,,,,;,',,",,.".,.,....,...._:"...".c_.,....'."...._".~....}.._'.'f~:::'.""" ",';?:,;}" ; . , ":" .. ... . .n ,;'., Minneapolis, MN 55485-7644 ,,' " ''';_.. ...,':'': "'. . ",,;. (952) 941-5600 · Fax (952) 833-4701 '-',i' "'.' ";~"ii{," - -'.~-'/,\,....t;.,~>',wz. "/ . J .+';::'!l~}4>..' Tax I.D. #41-1684205 ".,'c;L.ft:'fl .- ;..', Cffl.l~"".I'" -,-t ~ ~;M~ ',"..;; ~: ,t.('~l,/~...,", . - '. ~ ~. ,. "~"-'~"...-;...,~', :-\':>~~/',.:"'. N ,'" .;:;';,.,f~~-,;:~;~~..:~:-~,.;'~:;;',:'~,. ^ , tf'~. 11<" ~.' "~" ' ..,-', ;.::,,, H "';\~~~i \ ',.., ~,;i,o;;1I:'l. :~."I~~.~~~<stM/(: .;:/ '".. .... ~. 11}'(~"','~"~~~t)(<'~_t~,-L') "t If: < " ~ ~ ." {!~>. ,,./.:'" ~"':-~". ~~::~:!'t..'~""I'~ :.'~",\ _N . <';'!l"f:-.- ~._~~',"I ~~"'(~:/:,. vi .;:7.iMlI~, .'tS:""~~; -~ fi ~ \ - Y'" /~_. -. , ~.p.../ .~~ !.'fJ.1ffi"~",< ..<1il"R,\~.~~~~~1:3~..':~~:-df,tt:)\1':"~-4U\~A~':~~\\*{~""~~~~~~~}iH~/\~,:'6: \.(h.q:}~~'I~:\'wNt~~ l<t4:}~i!JlfJ~,(~~i~}"'~'~~~~ ), ~ "~ PLEASE REMIT TO: P age It: 1 CLIENT: 011 i e KeoF"Opchak City eor Montice11eo Public Works Department 909 GolF Course Reo ad Monticello, MN 55362 INV. DATE INVOICE # PRO~IECT :# : CLIENT :# : CLIENT REF: 07/08/02 211093 BDXX-02-140E M06994 8 Locust Street UST Seo i 1 Testi ng HRA Development Site Meonticellc., MN FOR SERVICES RENDERED FROM 05/18/02 THROUGH 06/14/02 CONSULTING SERVICES 162.50 NON-SALARY EXPENSES 190.00 . PLEASE PAY THIS AMOUNT 352.50 AMOUNT PREVIOUSLY INVOICED AMOUNT DUE THIS INVOICE .00 352.50 Ve\ ~. L\lt S <?3 ~ ~o~ '-\. ~O ~ r'\ . .,... r . Please pay from this invoice. Terms: Due on receipt, 1'12% per month after 30 days, 18% annual percentage rate. r-.~ Weaccept ~ ~ PROVIDING ENGINEERING<AND ENVIRONMENTAL SOLUTIONS SINCE 1957. . . Relocation Conworth, Inc. 4725 Excelsior Boulevard Suite #200 Minneapolis, MN 55416 July 2, 2002 INVOICE Phone (952) 929-0044 Fax (952) 929-0568 Toll Free 1-877-805-1575 ?-\~. 4tp Sa&-3 .. ~\~q ~ ~ '-t~o ",_"'J.. Ollie Koropchak Executive Director Monticello Housing & Redevelopment Authority Monticello City Hall 505 Walnut St., Suite 1 Monticello, MN 55326-8831 JUNE SERVICES - MONTICELLO PROJECT O'Connor . . \\<Z.A. Talk with ~ regarding check status. Talk with O'Connor's attorney regarding issues with claim and check. TOT Ai. HOURS EXPENDED AT $70.00 PER HOUR 0.75 $52.50 'D ~@~" !if · -'1 2CO' ACQUISITION AND RELOCATION . . . Monticello HRA 505 Walnut Avenue, Suite 1 Monticello, MN 55362 MC100-32 July 10, 2002 c.. \(('\ \.l. ~ Invoice # 19654 TIF District No. 1-30 Professional Services Hours Amount 6/30/02 MTR For the Establishment of Tax Increment District #1-30 4,500.00 Total Due This Month: 0.00 $4,500.00 Status of Account: Current $4,500.00 30 Days $0.00 60 Days $0.00 120+ Days $0.00 Total $4,500.00 90 Days $0.00 yl.. So8-~~'\ ?-\ '3 .. ~ rur> I""Y V\...... PLEASE KEEP WHITE COpy FOR YOUR FILE AND REMIT PINK COPY WITH PA YMENT TO: . EHLERS & ASSOCIATES INC 3060 Centre Pointe Drive Roseville, MN 55113-1105 651.697.8500 . . . 7. HRA Agenda - 8/7/02 Consideration of Executive Director's Reoort. a) O'Connor business relocation claim - Based on the commissioner's direction of June 27, 2002, I called Attorney Greensweig to inform him I'd write a letter to O'Connor's attorney following my return trip noting thc rcason(s) thc liRA did not authorizc payment of the business relocation claim. While I was gone, Attorney Peterson inquired and Administrator Wolf'iteller authorized Attorney Lindahl, Kennedy & Graven, to respond (See attachment.) At this time, I have received nothing further. Front Street Project: Hans f-Iagen Project - The site preparation work was completed by Viet Excavating during the month of July and the closing on the sale of the property to Hans Hagen took place July 31, 2002, with the '1'1 F Contract being recorded by Hans Hagen Homes. (See attachrnent.) The Assessment Agreement will be recorded whcn thc final plat is recorded. The Carlson's moved out by August 1,2002, with the assistance of the Public Works people who are anxious to have the house demol ished prior to construction of the street and utility improvements along Front Street. The improvements were scheduled to begin August 1; however, the house contains asbestos. Public Works is applying for the necessary permits and I authorized demolition of the house and basement, remove of concrete, and fill to Schluender Construction in the amount of $1 0,000. I was only able to reduce their bid by $500. Publ ic Works Director Simola said he thought the price was reasonable considering the size of house and debris left. The bid did not include asbestos removal. Construction of the townhouses is planned to commencc by August IS, 2002. Front Porch Project (Vine and 6th Street) - Need to record the 'I'll" Contract at the County. Construction under way. Landmark Square - Footings being installed. Waiting for sanitary scwer issues to be resolved on Monday with City Engineer. Majestic I Icights - Scattered housing project: Planning Commission required basement in homes, new contractor, prices keep going up. Meeting next week to finalize numbers. City stafTwants quality - CMlIP wants afford-ability. All properties have been purchased and are vacated. Semi-annual TIF payments were mailed on July 31,2002. Note letters to Mr. Fluth and Mr. Komarek. 200 I TIf' Reports to State Auditor - completed on time and submitted to appropriate people. Available in o1Jice. Cargill Kitchens - After submitting a proposal from the City of Monticello including WAC/SAC fees fi)f this food processing, start-up company (wet industry), the company representatives met with city staff relative to fees and the proposal. They requested forgiveness of WAC/SAC fees, up-front TIF, and grant hom State. The State does do grants on special occasions to prevent the company b) c) d) e) f) g) h) . . . HRA Agenda - 8/7/02 i) from building out-state. Our waste water treatment plant has thc capacity. With the wage levels projected and the anticipated drain on the waste water treatment plant, the proposal remained as outlined. The company is now working with Big Lake where land is available fix $1. Elk River - I(ad call hom Elk River, doing a survey of cities as to what cities own industrial parks. They ran out of city owncd land and are experiencing the greatcr time it takes to put deals together. One of Monticcllo HRA's goals was to acquire land for the purpose of simplifying the deal. Wright County Economic Development Partnership - I (ave a meeting with Noel Labine, the new executive director f(n the partnership, on Tuesday, August 6. Will show him around Monticello. j) 2 June 17,2002 MONTICELLO Ken I-Ielvey, Relocation Consultant Conworth, Inc. 4725 Excelsior Boulevard. Suite 200 Minneapolis, MN 55416 Subject: Relocation Claims for Michael O'Connor, 218 Front Street, Monticello, MN 55362. Dear Mr. Helvey: . Attached is the check payable to Michael O'Connor as authorized by the commissioners of the Housing and Redevelopment Authority in and ti.)r the City of Monticello, Minnesota, on June 5, 2002. This concludes the 1-IRA's obligation to Michael O'Connor. Sincerely, I lOUSING AND REDEVELOPMENT AUrHORITY IN AND FOR TilE CITY OF MON1'ICELLO Ollie Koropchak Executive Director Attachrnent c: I-lRi\ File Roger Belsaas, Mayor . f\~ Montic.:cllo City Hall, 505 Walnut Street, Suite I, Montic.:ello, MN 55362-8831 . (763) 295-2711. . F'IX: (763) 295-4404 Office of Public.: Works, 909 Golf Course Rd., Montic.:cllo, MN 55362. (763) 295.3170. Fax: (763) 271-3272 .* r CITY OF MONTICELLO ACCOUNTS PAYABLE 505 WALNUT STREET. SUITE 1 MONTICEllO, MN 55362 763-295-2711 DATE 75-1664 910 NO. 69323 MARQUETTE BANK. MONTICElcO' 1'0. BOX 729 MONTICEllO, MINNESOTA 55362 . (763) 295-2952 CHECK NO. AMOUNT 06/13/2002 69323 THREE THOUSAND THREE HUNDRED THIRTY ONE AND 52/100 DOLLARS $3,331.52 PAY TO THE ORDER OF MICHAEL O'CONNOR II' 0 b ~ ~ 2 ~ II' I: 0 ~ . 0 . b b L. 71: 7 bO 00. '1fiid, VENDOR ,00617 MICHAEL O'CONNOR 06/13 2002 f-;'UND & ACCOUNT P.O, 7.13.46583.4399 :n3. 46583.4399 218 FRONT STR 218 FRONT STR RES. FIXED MOVING E 1,400,00 RES. INCID CLOSING 1,931.52 TOTAL 3,331.52 . tt 4.') . CITY OF MONTICELLO. MONTICEllO, MN 55362 . Kennedy .' 470 Pillsbury Center 200 South Sixth Street Minneapolis MN 55402 (612) 337-9300 telephone (612) 337-9310 fax http://www.kennedy-graven.com JUL 24 2002 .CHARTERED ROBERT J. LINDAI L a aw Direct Dial (612) 337-9219 *Celtitied Real Property Law Specialist CONFIDENTIAL - ATTORNEY/CLIENT PRlVILEGED COMMUNlCA TION July 23,2002 VIA FACSIMILE (763) 295-4404 AND U.S. MAIL Rick W olfsteller City of Monticello 505 Walnut Street, Suite 1 Monticello, MN 55362-8822 Re: Housing Redevelopment Authority in and for the City of Monticello v. Michael 1. O'Connor. et al.; Wright County District Court File No. C2-01-1924 218 Front Street, Monticello, MN . Dear Rick: This is a follow-up to our telephone conversation of July 18, 2002. At that time you faxed me a copy of the letter from Ollie Koropchak to Ken Helvey transmitting the check payable to Michael O'Connor for relocation assistance due to relocating his residence from the above address. She also stated in the letter "this concludes the HRA's obligation of Michael O'Connor", implicitly advising of the denial by the BRA of Mr. O'Connor's claim for relocation expenses due to relocating his alleged business from the property. On July 18, 2002, I told you T thought that I should review the relocation regulations to confirm whether the HRA should be advising Mr. O'Connor of the procedures for appeal of the HRA's denial of the claim. Please be advised that 49 Code of Federal Regulations Section 24.207(g) provides as follows: (g) Notice of Denial Claim. If the Agency disapproves all or part of a payment claimed or refuses to consider the claim on its merits because of untimely filing or other grounds, it shall promptly notify the claimant in writing of its determination, the basis for its determination, and the procedures for appealing that determination. '\~ . IUL-2l7888v 1 MNI9()~89 *Celtilied by Minnesota Statc Bar Association . . . Rick W olfsteller Ltr July 23,2002 Page 2 Since Ollie's letter was to Ken Helvey, it is possible that Ken sent a letter to Mr. O'Connor or his attorney which complies with this requirement. I have not received a copy of such a letter. However if no such letter has been sent to Mr. O'Connor or his attorney, T recommend that the HRA (or I on your behalf) send a letter like the one I am enclosing to Mr. O'Connor or his attorney in an effort to comply with paragraph (g) above. Please let me know whether you would like me to send this letter. Robert J. LindaU RJL:peb Enclosure cc: Ollie Koropchak Ken Helvey Dan Greensweig R.lL-217888vl MN190.89 . . . ROBERT J. LINDALL Attorney at law Direct Dial (612) 337-9219 *O:rti lied Real Property law Specialist July 23,2002 1) R tr'Fl VIA FACSIMILE 763-682-4465 AND U.S. MAIL John T. Peterson, Esq. Johnson, Larson & Peterson, P.A. 908 Commercial Drive Buffalo, MN 55313 Re: Housing Redevelopment Authoritv in and for the City of Monticello v. Michael 1. O'Connor, et a1.; Wright County District Court File No. C2-01-1924 218 Front Street, Monticello, MN Dear Mr. Peterson: The Monticello Housing and Redevelopment Authority has asked that I write you to confirm that the Board of Commissioners of the HRA has denied the application of Michael 1. O'Connor for reimbursement of those parts of Mr. O'Connor's claim which purport to relate to relocation of a business formerly located at the above address. As a result, the HRA has denied $17,960.50 of Mr. O'Connor's claim. The claim was denied because any business which had been operating at the above address had been operating without required City approvals (among other reasons because the business did not conform with applicable zoning controls). As such, it did not qualify for relocation assistance under 49 Code of Federal Regulations (CFR) S24.2(g)(2)(xi) because the business was not a legal occupant of the property prior to the initiation of negotiations. If Mr. O'Connor wishes to appeal this determination, he may do so by filing a written appeal with the HRA pursuant to 49 CFR S24.1O within 60 days of the date of this letter. Very truly yours, Robert J. LindaU f\~ RJL:peb cc: Rick WolfsteUer Ollie Koropchak Dan Greensweig RJL-217889vl MNl90-89 "Certified by Minnesola Slate Bar Association 07-30-02 08:31 From-KENNEDY & ~RAVEN +6123379310 Monticello HRA Purchase T-162 P.02/02 F-118 .Buyer Selle.. Hans Hagen Homes. Inc. fl~ Clsg Date; July 31, 2002 Monticello HRA Legal: See AttaChed Pwthasc Price 5300,000.00 . Buyer proJ'ation of Real Esme Taxes for 2002. Assessments Total to be a,coulllCd for at Clu.swg 5561.70 $0.00 5300,561.70 . Seller Chames. Credit Buyer Seller proration of Real Estate Tucrs for 20U2.... State Deed Tax. ($3.3o/100app) Conserva.tion Fcc:: ReCDrl:iing fee (2 Panial Releases) Recordine Fee (Deed) Title Exam Fee Special Assessment Search Fee AbstraCt Fee Name Search Fee Total Disbursements trom Closing ProCGC:ds (2) To MonticeUo lIRA @ dosma (1) lna (1) $778.30 $990.00 $0.00 $40.00 $20.00 $275.00 $160.00 S921.00 $25.00 53,209.30 5197,352.40 Nates for Soller: <o~ .. Pr ration Fa u il. fo . = .561 7Q u Tax Proration Formula for - 1,340.0QfJ65 d8}'S"" 3.67per day X 212 clays'"" $77830 2002 Tax amount reflects takes owed on Parcel 2 only. liS parcels I. 3 & 4 are exemp~ ~ ~~ 0-7\-0'>- ~ f\ ?-- <r~ '?:l\O /l \ '::> .. 0- J?-- I- " .- ~y ~~ ~ . TOTAL.. P.02 July 31, 2002 MONTICELLO Mr. Barry Fluth BBF Properties 19577 18()Ih Avenue Big Lake, MN 55309 Re: August 1, 2002, semi-annual tax increment payment. Dear Barry: . This is a letter notifying BBF Properties of the amount of tax increment received from Wright County for the first one-half of Taxes Payable 2002. The amount of tax increment received for the Cub redevelopment project was $24,728.50. Therefore, after reduction of 10% of the Tax Increment ($2,4 72.85) and the $22,500 to the Authority per the Taxable Tax Increment Revenue Note Series 1998 dated December 21, 1998, there is no Tax Increment available (remaining) for payment to the Developer on August 1, 2002. 'This will also be the case for the semi-annual payment due February 1, 2003. The reduction in the tax increment is the result of the class rate reductions instituted by the State Legislators for the purpose of lowering the amount of the property taxes paid by commercial and industrial users. Should you have any questions. please call me at 763-271-3208. Sincerely. HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR Tl-iE CITY OF MONTICELLO. MINNESOTA o~ \-<C\U~~ Ollie Koropchak Executive Director f\0 c: TIF District No. 1-22 File . Monticello City Hall, 505 Walnut Street, Suite I, Monticello, MN 55362-8831' (763) 295-2711' Fax: (763) 295-4404 Office of Public Works, 909 Golf Course Rd., Monticello, MN 55362 . (763) 295-3170 . Fax: (763) 271-3272 ... ~ Cl (II a.. . ~ S In .c ::l (.) . Ll.. to lD , ... 3 '" E ~ "' ~ lJ .s )( r'! .!2 ] Gi o ::!: "5 >. Q . '" 8 ~ l::! I'- o JUL, 23. 2002 I~~\ lfu 5 o':a1 o cr ~ w> 0.. co c.n \J'l ~...... <ll :;- ~~! cu ell ;:1- ..... (,) H '2 <Cll.. "i il~~ ~ e r:;; III -a. -~ ell r.:: .g- cu c:; E 'i:: o..~ ~ = <::I 111 r-- \ Q) I~jl : ~\ \:~ ~ Q.l ~ ~ =- 1-: ~ \~ ~ o "'\lie Q,<I) ~~ IH\ 8's <c E, ~ ~ .8\ ~ g> ~ Q.lD(ij ~ co u: CJ Z .', - .... ,2 >- II ffi ' m-8 ,8 :2\ 1j\~. $ 9:51PM EHLERS & ASSOCIATES . 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Iti ~ N .. ~ ...I 0 .0"'1'- r-.<"l.r.l "Ii!"."Il""""... -.cr.. ~~~~ .... *#?!< alCDal 1:lU)(tiu) CIlNNN c::--""" ......- NCOHO \D<<l~ N("'}Ol (,)1'..- .,.; c-i ...",(l),</, (.J Y\~ 8~~ N~~ N o ~ u :2 June 27. 2002 MONTICELLO . . Mr. John Komarek Cedrus Creek Craftsman. Inc. 12420 Armitage Avenue NW Monticello. MN 55362 RE: Contract for Private Redevelopment by and among the City of Monticello. Minnesota. Cedrus Creek Craftsman. Inc. and the Housing and Redevelopment Authority of the City of Monticdlo. dated July 3. 1996. as amended January 13. 1997 (the "Contract"). Dear Mr. Komarek: Following a City Council meeting. the party residing at 1342 Prairie Creek Lane asked the Public Works Director to inspect the drainage tlmv in the rear of their property, The Public Works Director and the City Engineer Consultant inspected the property and reviewed the approved site plan for Prairie Creek, It was noted the site ""ork was not completed per the approved site plan causing water to tlo\" across the rear of the property owner's lot. It is my understanding that Cedrus Creek Craftsman. Inc, has been notified by the Public Works Director and/or City Engineer Consultant relative to this matter. According to the "Contract": In ARTICLE IV. Section -1-.1. Construction of Improvements, The Redeveloper agrees ' that it \ViII construct the Minimum Improvements on the Redevelopment Propel1y in accordance with the approved Construction Plans and at all times during the term of this Agreement. will operate and maintain. preserve and keep the Minimum Improvements or cause such improvements to be maintained. preserved and kept \vith the appurtenances and every part and parce I thereof. ........,. Until the site work is completed per the approved Construction Plans and the obligations of ARTICLE IV. Section 4,1 are satisfied. the Authority will withhold the semi-annual tax increment payments to the Redeveloper commencing August I. 2002. and thereafter, ~0 Monticello City Hall. 505 Walnut Street, Suite \, Monticello. MN 55362-8831 . (763) 295-1711 . Fax: (763) 295-4404 Office of Public Worb, 909 Golf Course Rd.. Monticello, MN 55362 . (763) 295~3170 . Fax: (763) 271-3272 r. Komarek June 27. 2002 Page 2 Thank you for your immediate attention to this matter. Should you have any questions. John. please call Ole at 763-271-3208. Sincerely. HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO O~\<",o~g~ qllie Koropchak Executive Director cc: TIF District No. 1-20 File John Simola. City of Monticello Bret Weiss. WSB & Associates, Inc. . . 2 . . July 29, 2002 -. MONTICELLO Mr. John Komarek Cedrus Creek Craftsman, Inc. 12420 Armitage Avcnue NW Monticello. MN 55362 RE: Contract for Private Redevelopment by and among the City of Monticello, Minnesota, Cedrus Creek Craftsman. [nc. and the Housing and Redevelopment Authority of the City of Monticello, dated July 3. 1996, as amended January 13, 1997 (the "Contract"). Dear Mr. Komarek: This is a follO\v-up to the June 27, 2002, letter relative to the site work at 1342 Prairie Creek Lane, Monticello. John Simola, Public Works Director, has informed me that the non- compliance site work \vas completed and that he awaits verification that the site work has been completed per requirements and a copy of the as-built. The City of Monticello staff appreciates your quick response and upon hearing from the Public Works Director that he has received the verification and copy of the as-built, your semi-annual tax increment payment will be in the mail. Again, thank you for your immediate attention to this matter. Should you have any further questions, please call me at 763-271-3208 or John Simola at 763-271-3271.. Sincerely, HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO u~ \~d\~ QJl~ Ollie Koropchak Executive Director '\~) cc: TIF District No. 1-20 File John Simo[a, City of Monticello Brcl Weiss, WSB & Associates, Inc. ..~ ,._... .._",'" "".,.,.".,.,..-...-.----- ,. ,.""'-.,...---.........., ,.,.,"______,_~"."'~,....~~'___' .~,.'H"~___~.,r~_~'_.."._.__~_~_~_"'_~~.".'___'"''''~.~.~~,.,R'._._________..~~__~.,'~,'.... ........---~....----'-' Monticello City f[,t11. 50S Walnut Street, Suite I, Monticello, MN 55302,~in I . (763) 295-2711 . Fax: (703) 295A404 Office of Public Works, 909 Golf Course Rd., Monticello, MN 55362 . (763) 295,3170 . Fax: (763) 271-3272