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
. 'm (>> 0 0 .... .,.;' C'l N ~-'~-;;;-ilr~ ..
O'lmOOOOOOOOOOO
O)(llOOOoooooooo
....... ... N .... N N N N N N N N N'
",""",--",-",-~"",,",~"""'''If'''""'~''E''''''''-':-~
999QQC?99C?C?999
NOClC'l<<lN<<!NCONlnN<ON
0000000000000
OltlOLnOltlOll>OIt'lOltlO
"":'~NcJc;.;M-i-.q.IciLciu:iu:ir...:
m
en
m
...
o
o
o
N
N
o
o
N
.,....
o
o
N
(") ..q 0 ll>
!'-- l'o .,.... ~
0 N It'l_ .......
ri <"l~ (") ....
N ~ N N
0 N to 0
CJ'I ~
to
ui <<i
...
0 0 0 0
l'o<"l<or-a)......NNNNNNN
(Cr-CO'oT....o.nOOOOOOO
...O(l)~OI!)(CCOtOtO(O(g~
..; ri N t.&i ~ ai ~ .,; ....: ..,: ~ ~ ~\
ON...It>r-l'oOOOOClOO
It)1t'llt)ltllt)ll>(O(l)(C(C(CtOcO
ooo~~i!O
1O......1l)
cOeDN
....
OQOC'lN-q'O
r.>>(J)!'--
(1)......\0
U;tDN
....
0000000
r- to \I) m ..... 0) It) Q 0 0 0 0 0\ N:\
<oo.....U'l!'-(").., 0
....mtD(ClDCOl'o to
-q- as ai ri ..,; ai ~. 1 ~
................ N 0
o I'- ~ m I'- .. I'- N N N N N N -\
OtDl'-<O"'''-IOOOOOOO
O......OlDl"')OIXlCl:JlDl.O<OW(O
O..;MN<ti.....:m~...:.....:.r...:....:
OON...<1>r-......oooooo
U'J II) II) 1l> LO If) \l') CD CD (0 lO <0 <0'
<oc:n (>>oo.,......-NN l")l"')"''''
0)0)(>>0000000000
0)0)(>>0000000000
...... ..- .,.... N N N N N N N N N NI
</),
~ "'I:"""" ~ ..... ~ ..... "'I:"""" ........ ~ ...... or- -.c- lilt""" 19:\
NOOOOOOOOOOOOO
~N' Nci!~ilNtO~cbNc;Ql-
.... 0 :g 0 0 0 0 0 Q 0 0 0 0,
~ ~ ~ C! ~ ~ \J') 0 ~ ~ ~ ~ ~\ i
O..........NNI"')..,...<<tIll1l><OIQ
-~~._~j
NO, 3059
P. 2
..,
~
ci
g
N
....
o
1i
-<>
..ci
"
<.>
l2~8
..,~$
I '-' ... - "'""'"
-II:;NI,l1
"'Oll....N
E~
c: (II
<0.
000 U
~ooCJ <::
<;>00
~r.ti"1tEi g
:1:..,........
.. ""
'" ..Q
Oll "
...I 0.
1>'
co C;;~~ e
U) .~ ... 1'-_ l:Il.
:k' <'II
::lct>I'-'<l" ""
N ~
~ Q.
a) ~~~
It)
~ "'.........
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