HRA Agenda 09-04-2002
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AGENDA
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, September 4, 2002 - 6:00 p.m.
505 Walnut Street - Bridge Room
Commissioners:
Chair Brad Barger, Vice Chair Steve Andrews, Darrin Lahr, Dan Frie, and
Hill Fair.
Council Liaison:
Brian Stumpf.
Staff: Rick Wolfsteller, Ollie Koropchak, and Lori Kraemer.
1. Call to Order.
2. Consideration to approve the August 7, 2002, HRA minutes.
3. Consideration of adding or removing items from the agenda.
4. Consent Agenda.
A.
Consideration to adopt a resolution amending the Contract for Private
Redevelopment between the HRA, the City, and Presbyterian Homes Ilousing and
Assisted Living, Inc.
5. Consideration to hear an update on the progress fi.1f redevelopment of a portion of Block
52.
6. Consideration to approve changes to the Contract for Private Redevelopment between tbe
HRA, the City, and the Central Minnesota Housing Partnership.
7. Consideration to authorize payment of HRA bills.
8. Consideration of Executive Director's Report.
9. Committee Reports.
10. Other Business.
11. Adjournment.
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MINUTES
MONTI-CELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, August 7, 2002 - 6:00 p.m.
505 Walnut Street - Bridge Room
Commissioners:
Chair Brad Barger, Vice Chair Steve Andrews, Daffin Lahr, Dan Frie and
Council Liaison Brian Stumpf.
Bill Fair
Rick Wolfsteller, Ollie Koropchak. and Lori Kraemer.
Absent:
Staff:
Guests: Mark Run: Ehlers & Associates. Inc.
Jim McComb of McComb Group, Steve Johnson, and Kevin Heaton.
Kathy Anderson, KKE Architects
1. Call to Order.
Chair Bargcr callcd the meeting to order at 6:05 pm and dcclared a quorum.
2. Consideration to approve thc .June 27. 2002. liRA minutes.
A MOTION WAS MADE BY DAN FRIE TO APPROVE 'fIlE MINUTES OF THE
HRA MEETING ON JUNE 27, 2001. STEVE ANDREWS SECONDED THE
MOTION. MOTION CARRIED UNANIMOUSL Y.
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Consideration of addin~ or rcmovin!! items from thc agenda.
· Ollic Koropchak ac.hised of a rcquest by Mike Cyr for an amendment to his
Pri vatc Rcdevelopmcnt Contract
. City Budget requests by !-IRA
4. Consent A!!enda.
A.
Consideration to approvc a resolution approving the decertification of Tax
Incremcnt District No. 1-14 of the City of Monticello. Recommendation: To
approve resolution approving the deeertification of'fIF District No. 1-14.
B.
Consideration to approve a resolution adopting a modification of the
Redevelopment Plan for Ccntral Monticcllo Redevelopment Project No.1,
establishing TIF District No. 1-31 \vithin Central Monticello Redevelopment
Project No. I. and adopting a TIF Plan therefor. (Applicant, UMC)
Recommendation: To approve resolution adopting modification of the
Redevelopmcnt Plan tlH" Central Monticello Redevelopment Project No. I,
establishing TIF District No. 1-31.
Don Tomann statcd he was excited to be mo\'ing to the City and looking fOf\vard
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HRA minutes - 08/07/02
to working together. Andrews asked Tomann what his time frame was and he
stated approximately April 2003 for occupancy, with the shell of the building up
before winter. Koropchak advised that drawings from Olson were dropped off for
review. Tomann advised that parking in the front of the building would include
landscaping and vegetation for screening from the road.
C.
Consideration to approve entering into the Contract for Private Development
among the HRA, the City, and Terracc & Mary Tomann Family Limited
Partnership. Recommendation: To approve entering into the Contract for Private
Dcvelopment.
D.
Consideration to approve a resolution adopting a modification of the
Redevelopment Plan for Central Monticello Redevelopment Project No.1,
establishing TI F District No. 1-32 within Ccntral Monticello Redevelopment
Project No.1, and adopting a TIF Plan therefor. (Applicant Production Stamping,
Inc.) Recommendation: To approve resolution adopting a modification of the
Redevelopment Plan establishing l'IF District 1 ~32.
E.
Consideration to approve entering into the Contract for Private Development
among the HRA, the City, and Wurm Partnership L.L.P. Recommendation: To
approve entering into the contract among the HRA, City and Wurm Partnership
LLP.
A I'vIOTION WAS MADE BY DARRIN LAHR TO APPROVE THE CONSENT
AGENDA AS WRITTEN. STEVE ANDREWS SECONDED THE MOTION.
MOTION CARRIED UNANIMOUSLY.
5. Consideration to review and discuss the revised McComb Development Feasibilitv
Financial Analvsis, to hear proposed development plans bv the Development Team, and
to neeotiate level ofTIF assistance for the proposed proiect.
Koropchak introduced Kathy Anderson, KKE, Jim McComb, Kevin Heaton, Steve
Johnson, and Fred Katter (representative for the owners).
Jim McComb advised of the changes made to the first analysis and that since the last
HRA meeting they have worked at putting together information with the development
team, adding that they are working with Brad Bainey of the Bainey Group, as their
contractor.
Kathy Anderson, KKE, provided a site plan stating this would be a phased approach
starting \-vith a 34,000 sq. ft. building with lobby entry to the oHice portion, retail on the
first level and upper tloors to be offices. The first phase is on the corner of Broadway and
Hwry 25. Anderson stated there will be 179 surface parking spots, 48 underground, for a
total of 227 spaces. They will be using a controlled sign package with strict guidelines in
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liRA minutes - 08/07/02
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place. She advised thcrc \o\oould be vicws of the river on the back sidc upper level and
also stated that thcrc would be a gap bet\ovcen the new and existing buildings which would
allow some daylight. Barger asked if this meets the city's requirements for parking stalls
and Anderson stated these mect general standards but does not know about the city
standards. stating they would be 60 foot bays. Anderson stated phase 2 would be 32.900
sq. fL and construction time line. from start of construction on phase one to completion,
is approximately 18 months.
Fred Katter. Pineapple Managemcnt Co., owners reprcsentative for redevelopment, stated
that he works with communities and owners and is involved in all phases of the project.
He provided some background and advised that he handles environmental matters as well
as acquisition of grants from State and other resources to assist the City in financing.
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McComb stated their objective at this meeting was to go through the changes in the report
and move forward on discussions. Regarding construction costs. he stated the design
doesn't changc square footagc numbers significantly. Parking tabulation was changed
based on design. They added W. Broadway and re-striping of Walnut SL and organized
the parking on the municipal lot. McComb stated they ended up with more parking than
in the original report. stating they had left 38 spaces on the southwest corner for the
buildings that remain on the block. using 3.5 spaces per thousand for their calculations.
Steve Andrews questioned how the parking demands relate to the actual requirements by
the City and McComb stated he did not know. but had looked at what works with these
types of businesses. Klatter added that this is supported by the ITE and parking for their
tenants is a grcat concern to them as well. Andrews also asked if they are borrowing
parking spaces li'om any other businesses and they stated no. They also included II
spaces on the north side of Broadway and 58 on Walnut Street. Barger asked if current
businesses on Walnut Street had been included and he stated no. Kathy Anderson, KKE.
said in comparison to Arbor Lakes Development in Maple Grove for mixed uses, it is
typically 4 spaces per thousand.
Regarding the development costs the only change was in construction. which is approx.
$800.000 less than what \\as previously estimated. For income proforma they decreased
the rent for retail and oftice tenants. Retail is $15 per sq. ft., office is $12.5 per sq. ft.
stating a rcduced income but also reduced the mortgage amount as well. Net rent is
paying f(Jr realestate. gross rent for tenant is not net, but for retail is $22.10 and office is
$19.60. stating the tax per sq. ft. would be amongst the highest in the City. They stated
their taxable value would be $5.9 million. taxcs at $171.000 for both phases. Rick
Wol fsteller asked if they had conversations with the County Assessor to verify the value
as he felt it seemed high. ~IcColllb felt it was valued at $110 per sq. 1'1.. the mortgage is
now $5 million and without assistance it \ovoldd be about $2.7 million. stating the
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financial gap is $I...J. million without parking and $1.5 million with parking..
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Mark Ruff Ehlers and Associates. asked there was a breakdown of the two phases and
McComb stated there is not. It was stated the trigger point to begin phase 2 would be
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I-IRA minutes - 08/07/02
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leasing. McComb stated one of the things that could be donc is a market study to
determine what would be the appropriate rental rate. Bargcr asked how they cstablish the
land value since they already own the land and it was noted that land has a value that has
to be incorporated into the project. Fred Klatter added that the financial institution
requires appropriate value on thc land. stating that this is an cxpense that has already been
paid. It was also advised that Johnson and Heaton will have an appraiser value it.
Mark RulT asked McComb to explain the parking costs and how they arrived at that
number. and also asked what the cost would be for the land that still needs to be acquired.
McComb stated it is 2 times the assessed value which is what MnDOT uses to calculate.
He also did not know what the properties could be acquired for.
Dan Frie ask cd about the municipal fces on the soft costs listed in their analysis and
McComb stated it was their assumption that was that the City might want to contribute
those to the developer. Some communities don't charge sac/wac for redevelopment.
Wolfsteller stated the City would still calculate it in somewhere, but where the money
would come from he does not know. He also stated that the City does give credit for
existing utilities.
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Mark Ruff stated he agrees that the biggest issue would be to get a value from the
assessor to basc thcse caleulations on. Pat Sawatzke, neighboring business owner. stated
he was also concerned with parking and that he did not want to losc any of his spaces.
McComb asked that the lIRA make a motion to move forward on the Development
Agrcement, but Lahr stated that they need to look at the level of TIf assistance tirst and
the Assessor' s information wi II determine that. Ruff stated that a certain I~lctor wi II be
acquisition. Bargcr noted they are all in agreement that they want thc project to go
f(Jrward. but the liRA can only do what is within their means as far as the level of
assistance. McComb stated that they would be comfortable in letting the HRA determine
the level of assistance at a latcr time.
A MOTION WAS MADE BY DAN fRIE TO ENTER INTO A PRELIMINARY
DEVELOPMENT AGREEMENT WITH STEVE JOHNSON AND KEVIN HEATON.
STEVE ANDREWS SECONDED Tl-IE MOTION. MOTION CARRIED
UNANIMOUSL Y.
There was further discussion hy McComb asking if the I-IRA wanted them to conduct a
market analysis but the HRA stated that should be something the owners request and pay
for. and stated also that they could look at the recent ncw buildings for that type of
information. Barger asked if the companies that they hire to lease the buildings would or
should have that information. The developers should be the ones that are interested in
that information. not the I IRA.
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It was the consensus that they \vould move forward and meet again at the Septembcr
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HRA minutes - 08/07/02
meeting.
6.
Consideration to authorize pavmcnt of HRA bills.
A MOTION WAS MADE BY DAN FRIE TO AUTHORIZE PA YMENT OF THE HRA
BILLS. DARRIN LAHR SECONDED THE MOTION. MOTION CARRIED
UNANIMOUSL Y.
7. Consideration of Executive Director's Report.
Koropchak provided the report and added information regarding the Carlson house
stating that asbestos was found, bids were reeeived for removal with Veit coming in
lowest at $2,500. She also noted that the Front Street project came in above the
Engineer" s estimate.
Front Porch
Koropchak advised that Mike Cyr has asked for an amendment to his contract stating that
the interest starts to accrue as soon as money is advanced and Cyr is asking for the
$12.300 to be changed to "for general site or stump removal", which moves his accrual
date. Koropchak believes the bank will advance the money. Cyr stated his expenses are
coming in higher than expected. Koropchak stated the HRA is not to act as lenders. but
approving TI F fl.)r gap financing only. It would cost the HRA to amend the contract and
they suggested asking Cyr to pay for the cost to amend. stating it did not seem feasible.
The consensus of thc liRA membcrs was to not amend the contract.
Magestic Heights/CMHP - another developer is looking at the project to see if the costs
could be reduced. The Planning Commission \vould have a special mceting on August 12
if this developer \vas able to construct at a lower cost.
BUDGET update. Koropchak reminded the HRA that last year the Council had discussed
whether the city would put more money in reserves for industrial land and it was stated
that the HRA had not requested any money. She asked ifthcre were any requests she
should include in the budget. There was discussion on the amount of money to request.
noting that the City would match this amount.
BRAD BARGER MADE A MOTION FOR THE I-IRA TO COMMIT $100.000 FROM
THE HRA GENERAL FUND AND MATCH FROM THE CITY TO BE USED FOR
INDUSTRIAL LAND. DAN FRIE SECONDED THE MOTION. MOTION CARRIED
UNANIMOUSL Y.
Koropchak also adviscd that she would not be using Ken Helvey's serviccs any further
regarding the Front Street/Hans Hagen project.
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HRA minutes - 08/07/02
8.
Committee Reports. None
9. Other Business. None
10. Adiourn.
A MOTION WAS MADE BY DAN FRIE AND SECONDED BY STEVE ANDREWS
TO ADJOURN THE MEETING AT 7:40 P.M. MOTION CARRIED
UNANIMOUSL Y.
liRA Chair
Recorder
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MINUTES
HRA WORKSHOP
Wednesday, August 7, 2002
5:00 p.m.
Present:
Chair Brad Barger. Vice Chair Steve Andrews. Darrin Lahr. Dan Frie. Council
Liaison Brian Stumpf, Rick Wolfsteller, Ollie Koropchak, Mark Ruff and Lori
Kraemer
Absent:
Bill Fair
Koropchak advised that the purpose of the workshop was to review the revised numbers within
the McCombs Development Feasibility Financial Analysis with Mark Ruff, Ehlers & Associates,
for input and to determine level of TIF assistance for redevelopment of Block 52, prior to the
HRA meeting at 6:00 p.m.
The members discussed relocation of tenants in Steve Johnson' s building when the leases run out
and who's responsibility that would be. Koropchak advised that Springborg had sold his
building and business to another party.
Mark Ruff Ehlers and Associates. summarized his thoughts on the analysis and stated his
thought was that it may possibly take the City donating land. paying all site costs, demolition.
grading. installation of parking lot and $200.000 to make the project work. Ruff stated the
higher costs of the project are mainly due to underground parking and the mix use of tenants.
Ruff did advise the HRA to question McComb why the land that is already owned by Johnson
and Heaton is included in the cost of the development.
The HRA stated they would be comfortable staying with their standards and funding the same as
they have for other projects. They further discussed the amount of assistance they would be
comfortable in offering and Ruff advised to request that they get a more accurate value on the .
project from the Assessor. It was agreed that they would otfer to give them all the tax increment
for that project for 18 years.
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HRA Agenda - 9/4/02
4.
Consideration to adopt a rcsolution amcndinl! thc Contract for Private
Redevclopment bctwcen the HRA, the City, and Prcsbvterian Homcs Housing and
Assistcd Livinl!, Inc.
A. Refcrcnce and background:
A couple of weeks ago, Attorney Bubul contacted the HRA oflice relative to the Contract
for Private Redevelopment with Presbyterian Homes. Dan J,indl of Presbyterian I-Tomes
stated that Presbyterian Homes was refinancing the Housing Bonds for the purpose of
reducing the interest rate.
As you recall, this Contract dated July I, 1995, is associated with the creation ofTIF
District No. 1-19, a qualified housing district, for Mississippi Shores which is owned and
operated by Presbyterian Homes "the Redeveloper". The City issued a $3.5 million
"l-lousing Bond" with the proceeds of the loan going to the Redeveloper. The HRA
agreed to reimburse the Rcdeveloper for Public Redevelopment Costs in an amount of
$325,830 with interest at a rate equal to the lesser of 8% per annum or the yield (as
defined in the Internal Revenue Code of 1986, as amended and Treasury Regulations
issued thereunder) on the I-lousing Rands. Thc yield of the bonds werc 7.26(';';,.
According to the Contract, the Redeveloper receives 90(% of the tax incremcnt
commencing August 1, 1997 and concluding no later than february 1,2012. Due to the
reduction in classification rates for Class 4a property, the Redevelopcr recognizcs they
won't rcceive the anticipated tax increment. Here is the downward trend in the class
rates: 2.4% in 200 I; 1.8% in 2002; 1.50;;) for 2003; and 1.25% for 2004.
The amended Contract to define the refinanced variable rate of 4.75%. The variable rate
will be adjusted every five years. The Redeveloper will cover the I IRA attorney costs to
amend the Contract. The City Counci I will be asked to approve refinanei ng of the
Housing Bonds on Septembcr 9.2002.
Mississippi Shores i6 a project which displays community pride. property taxes paid
timely, rents and incomes reported annually (this to discontinued as the Legislators did
away with "Qualified I-lousing Districts").
Attorney Bubul is drafting a resolution and an amendment to the Contract for adoption.
B. Altcrnativc Action:
I. A motion to adopt a resolution amending the Contract for Private Redevelopment
between the HRA, the City. and Presbyterian Homes and Assisted Living, Inc.
dated July 1, 1995.
HRA Agenda - 9/4/02
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2.
A motion to deny adoption of a resolution amending the Contract for Private
Redevelopment between the HRA, the City, and Presbyterian homes and Assisted
Living, Inc. dated July 1, 1995.
3. A motion to table any action.
C. Recommendation:
The City Administrator and Economic Development Director recommend Alternative No.
1.
D. Supportinl! Data:
Excerpt of Contract and resolution for adoption.
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ARTICLE III
Public Redevelopment Costs
Section 3.1. Status of Redevelopment Property. The Redevelopment Property
is currently owned by the Monticello-Big Lake Community Hospital District ("Hospital
District"). The Redeveloper shall acquire marketable title to the Redevelopment
Property pursuant to the purchase agreement between the Redeveloper and the
Hospital District dated July 20, 1995. The Authority shall have no obligation to
acquire the Redevelopment Property or any portion thereof.
Section 3.2. Public Redevelopment Costs. The Redeveloper shall construct
on the Redevelopment Property certain site improvements identified in Schedule B
hereto, in accordance with the Construction Plans. The City shall construct the site
improvements identified as "Public Improvements" in Schedule B, the cost of which
Redeveloper shall pay the City within 30 days after receipt of any invoice therefor.
The parties further agree and understand that, as a condition of issuance of the
Housing Bonds by the City, the Redeveloper will be required to fund a debt service
reserve for such bonds. The cost of the site improvements, together with the debt
service reserve for the Housing Bonds, shall be referred to herein as the "Public
Redevelopment Costs." In order to make the development of the Minimum
Improvements economically feasible, the Authority will reimburse the Redeveloper
for the Public Redevelopment Costs in the maximum amount of $325,830, in
accordance with the terms of Section 3.3 hereof.
In the event that the Public Redevelopment Costs exceed $325,830, such
excess costs shall be the responsibility of the Redeveloper. The Authority shall
have no obligation to the Redeveloper or to any third party with respect to any
defects in the construction of improvements financed or reimbursed by the Authority
as Public Redevelopment Costs.
Section 3.3. Reimbursement of Public Redevelopment Costs. The Authority
will reimburse the Redeveloper for Public Redevelopment Costs paid by the
Redeveloper pursuant to Sections 3.2 in the total amount of $325,830, in accordance
with the following terms and conditions:
(a) The Public Redevelopment Costs will be paid by the Authority to the
Redeveloper in semi-annual installments, with interest at a rate equal to the lesser
of 8 percent per annum or the yield (as defined in the Internal Revenue Code of
1986, as amended and Treasury Regulations issued thereunder) on the Housing
Bonds, payable on each February 1 and August ("Payment Dates") commencing
August 1,1997 and concluding no later than February 1,2012, which payments will
be made solely from and to the extent of Available Tax Increment as defined herein.
(b) The term "Available Tax Increment" means 90 percent of the Tax
Increments paid to the Authority with respect to the Redevelopment Property during
the six months preceding any Payment Date; provided that Available Tax Increment
shall not include any Tax Increments received by the Authority after February 1,
2012.
(c) Interest shall accrue on the unpaid principal amount of the Public
Redevelopment costs from the date of the Authority's certificate issued pursuant to
Section 3.3(f) herein (the "Accrual Date"). Payments by the Authority under this
SJB82834
MN190~47
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Contract for Private Development
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HRA Agenda - 9/4/02
5.
Consideration to hear an update on the orogress for redevelooment of a portion of
Block 52.
A. Reference and back1!round:
At the August meeting. the commissioners heard a presentation and received a copy of
the Block 52 Mixed-Use Development financial Feasibility Ana]ysis by McComb
Group, Ltd. Questions relative to parking, land values and new market values were
raised. McComb was asked to verify the listed market values within the Analysis with
the County Assessor. To keep the process moving f()rward, the commissioners made a
motion to enter into the Preliminary Development Agreement with Johnson and Ileaton.
In conversation with Johnson, he noted we need to work of the Redevelopment Contract.
He was reminded on the need to execute the Preliminary Development Agreement and
submit the $5,000 deposit. He also noted it was a 50/50 chance that Attorney Fleming
would be ready for the September 4 HRA meeting. At that point, McComb had not
contacted the County Assessor.
I took the libel1y to visit the County Assessor Office on ^ugust 26 and requested the
^ssessor estimate the market values for the project as presented within the Analysis.
Upon receiving the information from the County, I will have Mark Ruff run some cash-
flow numbers for the HRA meeting. Additionally, I have .John Glomski, Planner Tech.
calculating the number or parking stalls required for the proposed project based on the
city ordinance and how it relates to the existing or proposed parking plan. Also I checked
at the County on the sale of the Springborg property. The Certificate of Real Estate
Value (CRV) noted a sale price of$320,000. Without an attached ronn for c/i sales, the
County was calling to verify irthe CRY sale price included real estate and business or
just real estate.
Additionally, it was brought to my attention that the proposed second phase of the project
is outsicle of the North Anchor Task Force recommendation. Need to discuss this.
Lastly, as the City continues to negotiate on the swap of the Marquette Bank and the
Library and the potential of the Marquette Bank becoming tax-exempt, the 30,000 sq ft:
additional building needed for the II RA debt payment to the City on the $2.] million
Bond would then increase to 38,000+ sq ft. Although the swap includes a proposed 6,000
sq ft: retail space be constructed along Walnut Street, the real issue becomes the market
demand for retail space and the I IRA time frame for expenditure of the Bond proceeds
(July 31,20(4). Just something to keep in mind. Taxes payable 2002 reflect the class
rate reductions and taxes payable 2003 will reflect the 4-year knock-down rule.
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1856
FAX
To:
Fax#:
Subject:
Date:
Pages:
Ollie Koropchak
763 295-4404
Block 52 Value Estimates
August 28, 2002
1, including this cover sheet.
COMMENTS':
Ollie,
Here are the estimates you requested for Phase 1 and Phase 2 ofthe Block 52 Development.
These estimates were created using 2002 commercial values for Wright County.
Jim
Phase 1
Land $ 120,036
Bldg $2,197,491
Total $2,317,527
Phase 2
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Land $ 120,036
Bldg $1,364,373
Total $1,484,409
From the desk of...
Jjm Borrett
Property Appraiser
Wright County
10 2nd St NW, Room 240
Buffalo, MN 55313
763682-7370
Fax: 763 682-6178
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To: Jeff, Ollie
From: John
RE: Parking Requirements For Block 52 Proposed Project
Total Leasable Square Footage per Use
Office: 34,300
Retail: 19,800
Ordinance Parking Requirements
Office: 3 + 1 (200)
Retail: 1 (200)
34,500 sq. ft.
19,800 sq. ft.
176 parking spaces
99 parkiml spaces
Total: 275 parking spaces
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provide only 71 on site parking spaces...... the rest of the parking is relied upon by other
sources (i.e. on street parking, municipal parking, the HRA buying the springboard
building/tearing it down/and creating 20 parking stalls)
. not relying on other sources as well as using their standards of 3. 5 spaces! 1000 sq. ft.
which is less than our ordinance....... there stillwouldn 't be enough parking for the office
use alone. '
. I'm not against this project and I do feel we have an adequate amount of parking in the
downtown area, but something would need to be worked out where this development
would pay for its inefficiency in parking, at which the time the city can use that money to
possibly purchase springboards and build added parking.
. We need to make sure that adequate parking is providedfor the office use in this
development (the people that will come and park everyday) To me, the retail isn't as big
an issue and can rely more on parking in the surrounding area.
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Operating Statement f \ ~e ~ ..,...
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A. B. C. D.
Revenues <lnd Other Financing Sources (QFSs) ()rigin<ll lIF.PI"n Cumulutiv.: i'vlodilicd Accountcd for in
Budgcl Amount T IF-Plan Budgct Prior Y curs 2001 Amount
24 L\\. im:rCl1lcnt rc\cnul.: :539.0IJO.OOO SO S 150.390 S 18--1.972
25. Intcn:st on in\ csted funds SO SO S 1.265 S.+ I. 1.+0
26. Bond proceeds SO SO $0 $2.150.000
27. Lu"n rrocccds SO SO S56Ah8 SO
28. Special assessments SO SO SO SO
29. Salcs/ktlS": procc<;:ds SO $0 S 1'+.398 S IA82
30. Loani<IJ\ ancc repayments SO $0 SO SO
31. Grants SO $0 SO 'SO
32.."\ Other Local Contribution S950.000 SO $0 SO
32.B lIF .'\rrlicution F<.:<.: SO $0 S 13.000 S5.000
32.C Other Additional TIF Fees SO SO S.+.717 SO
32.D Loan Schlkf do\\npaymenl SO $0 S20.67.f SO
32.E Other SO i SO $0 SO
32.1" Other (describe hen:) SO SO $0 SO
32.G Other (,.kscri be here) SO SO SO SO
32.H Other (describe here) SO SO SO SO
33 Transfers in (from line 65) SO SO ! SO $0
3~. Total Revenue and OFSs S39.950.000 SO S260.918 $2.382.59'+
Expenditures and Other Financing Uses (OFUs)
35 Land/building JC<.juisition $.+.275.000 $0 $77.1.+1 S5.+7.106
36. Site improvcm<.:nts'pr<,:pllration costs S-I.275.000 SO $0 SO
37. Installtllion uf public utilities S.+.275.0no $0 SO $16.381
3X. Parking t~lcilities $.+.275.000 SO SO SO
39 Str<.:cts and side\\~Iiks SO SO SO SO
.j.(). Public par'k t'acilitics SO $0 SO SO
-II. Social. recrealionalur conl"..:n:nce facilities SO $0 511.250 $258.750
-12. II1l<.:rcst reduction paymcnts SO SO SO SO
'+3 Bond principal pa::- II1CnlS SO SO SO SO
H. Bond inl<.:reSt p,lymel1lS SO SO SO SO
-15. Luan princip,11 pa::- ments SO SO $0 SO
.+h. Loan/ll\lt.: inlerest payments $20.000.()OO $0 SO SO
.+7. .'\dministrati\c c"renses $1.900_000 $0 S37.57-1 S-I9.213
-I8.r\ Uther Costs of Local Contribution $950.000 $0 SO SO
.+8B Other Application Fee Reimbur. SO SO 53.000 SO
-I8.C Other Proper!::- la." SO $0 S3.673 $1.211
'+80 BBFl'roject I intcrcst SO SO 56.692 SIR.76O
.+8.E ()thcr Sch I ie t" cfd pa::- m<.:nt SO SO $10.15-1 SO
-IX.F (lther Iltl\\ kins luan pa::- menlS SO SO 55.000 S56.737
'+8.(, Bond CI()singT~lying .\genl Fce SO SO $0 S33.115
.+UI Schlicf I.nan SO 50 S5.367 5 17.309
.+9. Transfers out (frOlllline 69) SO SO SO SO
50. Total Expenditures and OFtJs S39.950.000 SO S 159.852 $li9R.589
51. Rl'ycnucs Onr (l'nder) E\penditures SO SO S I 0 I. Oh6 S 1.3X.+.I)05
52. Fund Balance - 12/31/2000 S I 0 1.0hl'>
53. Fund Balance - 12/31/2001 S 1A85.071
T1F District Name: Tax Increment Financing District No. 1-22
1001 TIF District Report - Page J
.
.
.
HRA Agenda - 9/4/02
6.
Consideration to aoprove chan2:es to the Contract for Private Redevelopment
between the HRA. the City. and the Central Minnesota Housing Partnership.
A. Reference and Background:
The lIRA is requested to consider increasing their TIF up-front assistance for property
acquisition from $125,000 NPV to $158,000 NPV associated with the Central Minnesota
I lousing Partnership project.
At the June HRA meeting, the commissioners approved entering into the Contract with
the City and CMHP as outlined in the June 27 agenda supplement and as amended to
read: 3 homes completed by December 2002 and the remaining 6 homes by December
2003.
Previously on June 6, 2002, the commissioners approved transferring $42,750 from
I lousing TIF District No. 1-24 (St. Bens) to Housing District No. 1-30 t<Jr the purpose to
reimburse the City for permit and fees associated with the CMI IP project. This within
the 5-year pooling restriction (certified Jan 4, 19(9) and paid to a third party for qualified
costs. Year-end 2001 balance of District 1-24 is $51,404.
Upon review of the final plat by the Planning Commission, it was noted the side setbacks
were miscalculated. The Planning Commission approved the final plat subject to
decreasing the 1,008 sq ft livable space to 936 sq ft thereby reducing the width of
structure and meeting the side setback requirements. The approval also included the
construction of a one-half basement per unit. The construction costs of the 11 homes
increased by $66,000 upon adding full basements to each home. Attached is an update to
the City Counci I and the suggestion of stall. Also attached are the TIF Cashl10w
projections, total $181,000 NPV over 25 years. Currently. the City has agreed to loan the
HRA the $125,000 at 5% interest for the up-front assistance.
To date, CMl.IP has the contractor narrowed down to Keupers, waiting to hear HRA
decision, have Schluender lined up for demolition, and waiting for paper text from City to
close on two sites. The Contract for Private Redevelopment has not been executed by
CMHP.
B. Alternative Action:
1. A motion to approve changes to the Contract for Private Redevelopment between
the HRA, the City, and CMHP by increasing the acquisition assistance from
$125,000 to $158,000 NPV.
H RA Agenda - 9/4/02
.
2.
A motion to deny approval for changes the Contract for Private Redevelopment
between the HRA, the City and CMI [Po
3. A motion to approve changes to the Contract for Private Redevelopment between
the HRA, the City and CMllP by splitting the $33,000 gap between the HRA and
City.
4. A motion to table any action.
C. Recommendation:
Recommendation of the City Administrator is Alternative No.1. The lIRA agreed to up-
front assistance and waived the $5,000 deposit.
D. Supporting Data:
Copy of Jeffs update to Council, project costs, and TIF Cashflows.
.
.
2
.
.
.
HRA Agenda - 6/27/02
7.
Consideration to approve ~lUth()rization to enter into a Contract for Private
Development amon2 the BRA. the City. and Central Minnesota Housing
Partner'ship.
A. Reference and had:ground:
The Contract for Private Development outlines the terms and conditions of TI F assistance
to the dcveloper, Central Minnesota Ilousing Partnership (CMI-lP). The Contract was
dra1lcd by Dan Greensweig. Kennedy & Graven, and a copy provided to the developer.
crhc Contract is executed or agreed upon between the parties by the time City Council
approves establishment of the TIF District, in this case. TIF District No. 1-30. The City
agreed to forgivc up to $42.750 of the permit and other fees. The !-IRA agreed to provide
up-front Tlf financing in the amount of$125,000 NPV for acquisition of the substandard
parcels, waived the $5.000 deposit fee because the CMHP is a non-profit organization,
and agreed to reimburse the City for the permit and other fees with tax increment
revenues from other housing districts. The developer agrees to construct 11 single-
family. owner occupied homes (1,008 sq ft living space with attached double garages) for
purchase by families meeting. the income restrictions. The City agreed to loan the HRA
the $125.000 up-front dollars and the HRA will reimburse the City at an interest rate of
5%. Repayment shall commence August 1,2004, from available tax increment and shall
terminate the earlier of February 1. 2030, or the date the HRA has repaid the loan. If, at
the termination date, the city has not been fully been reimbursed for the loan. the
developer agrees to pay the difference between the sum of the loan and the amount of
available tax increment paid to the city. The developer must provide financial
commitment for construction costs and evidence of initial purchaser's income. Date to
commence construction yet to be determined. Five homes shall be completed by
December 2002 and the remaining six homes completed by December 2003. A
Certificate of Completion yviII be issued for each home upon issuance of the Certificate of
Occupancy.
The Council is requested to approve entering into the Contract at thcir meeting on June
24.2002. Also the Council will hold the public hearing for establishment ofTIF District
No. 1-30 on the 241h. The attorney representing the CMIlP has received a copy of the
Contract.
B. Alternative Action:
I. A motion to approve authorization to enter into the Contract for Private
Development among the I-IRA, the City, and the CMI IP.
2. A motion to deny entering into the Contract .............................
(p A
,
.
.
.
LJ pdate on Central Minnesota Partnership Affordable 110using Project.
This note is written to inform Council that the Central Minnesota Housing Project is
approximately $66.000 ovcr budget and that the City Administrator is suggesting that the HRA
provide an additional $33.000 in TIF assistance. Attached you will find the rcvised budget for the
project which shows that the per sales price limit of $126,000 has been exceeded. In order to
save the project, CMHP is seeking additional revenue and or budget cuts necessary to get the per
unit cost back to the $120-121,000 range. The infusion of additional TIF along would bring the
per unit cost to the $123.000 range.
Staff did not encourage a reduction in site amenities to reduce cost because the restrictive
covenants requirement/association, landscaping and architectural detail are necessary components
of a successful housing development. Currently, the finance plan shows CMHP paying the city
$95,000 for City land. Under Rick's proposal, CMHP would pay $62,000 and TIF would cover
the remaining $33,000. It appears that CMHP is supportive of continuing with this project under
Rick's proposal. The HRA will be presented this request at their next meeting. Staff is confident
that the HRA will accept this proposal. However, in the event the I.IRA does not want to employ
additional TIF. then the City will need to reduce the price of the land to make thc project work.
Unless stall hears otherwise from Council, it is assumed that the City Council will reduce the land
price in the event that the HRA does not approve additional TIF funds for the project.
~
. ACQuisition/Demolition
5 Properties
Legal at $500 ea.
Title Insurance
Filing Fees
Demolition
Platting & abstracts
Site Preparation
Fees and Permits
Real Estate Taxes
Financing
Insurance
Contingency
seller closing costs
Developer Fee
Subtotal
New Construction 11 homes
Subtotal
Total cost Acquisition/new construction
Sources
Tax Increment Financing
Employer
Permits & Fees
.
Deferred Developer Fee
Home cost
Buver pays 2 pOints on price
Program Sales Price limits
.
Revised Monticello Numbers
8/2102
Total Cost I 1.. ~ "
357,520 <"- Tilt:' ,.. J..J..e", Q(} f! ~ ~,,()OO
13,500
1,750
750
12,375
10,000
- 77 aDo.
-....i _
42,750
2,750
6,000
500
25,000
6,600
25.000
581,495
1,033,659 (Price includes base bid, 2,000 landscaping
1,033,659 2,000 Sprinklers)
1,615,154
125,000
$60,000
$42.750
$227,750
$25,000
126,128
2,500
128,628 (Over guidelines)
$126,000
wYJ
.
.
.
5122102
Ehhl'fS and ASSoolilte5. Inc.
CITY OF MONTICELLO, MINNESOTA
T.I.F. CASH FLOW ASSUMPTIONS
Interest Rate
Tax Extension Rate;
Inflation Rate;
Inflation on tax rates is not captured by TIF.
PIN
155-010-009030
155-010-009040
155-010-009050
155-010-009060
155-010-009061
Total
BASE VALUE INFORMATION
Percentage Total Parcel Pay 2001
of Parcel Market Value Value
100,00% 39,000 39,000
100.00% 39,200 39,200
100.00% 63,000 63,000
100.00% 20,700 20,700
100.00% 50,400 50.400
212,300 212,300
7.000%
1.45859 Pay 02
2.0000%
Tax
Capacity
390 e.hmalO
392 Estimate
630 Estj!ll~tl!
207 Estimato
504 Estimate
2.123 Upon conversion
Type of Tax Increment District:
Type of Development:
Number of Units
PROJECT VALUE INFORMATION
Housing
Owner Occupied Housing
11
Estimated Market Value of New Project:
Class Rate On first $76,000 of Market Value
Class Rate Market Value" $76,000
Estimated Tax Capacity;
Estimated Taxes;
Assesso<'s Market Value/unit
Taxes/un~
Taxes do not include market value taxes, which are not captured by TIF
Assumes 5 houses completed construction in 2002 and remainder in 2003
1,320,000
1.00'",
1.00%
13,200
19,253
$120,000.00
$1,750.31
Pay 04
Pay 04
1
loV
Piige 1
st'housing. TlFJO
.
.
.
5/22/02
CITY OF MONTICELLO, MINNESOTA
TAX INCREMENT CASH FLOW
Base Project Captured Sem~Annual Admin HRA Sem~ Annual Local Years
PERIOD BEGINNING Tax Tax Tax Gross Tax at ., Net Tax Cumu!. NPV Match at Of PERIOD ENDIN<"':
Yrs. Mth. Yr. Caoacity Capacity Capacity Increment 10.25% 0.0% Increment 7.00% 0.00% Increment Yrs. Mth.
0.0 08.01 2002 2,123 2,123 0 0 0 0 0 0.0 0.50 02.01
0.50 02-01 2003 2,123 2,123 0 0 0 0 0 0.0 1.00 08-01 ~"'_....
1.00 08.01 2003 0 0 0 0 0.0 1.50 02-01 2004
1.50 02-01 2004 2,123 6,600 4,477 3,265 -335 0 2,930 2,554 0 0.5 2.00 08-01 2004
2.00 08-01 2004 3,265 -335 0 2,930 5,07.1 0 1.0 2.50 02-01 2005
2.50 02-01 2005 2,123 13,200 11,077 8,078 .828 0 7,250 10,919 0 1.5 3.00 08-01 2005
3.00 08-01 2005 8,078 .828 0 7.250 16,618 0 2.0 3.50 02-01 2006
3.50 02-01 2006 2,123 13.464 11,341 8,271 -848 0 7,423 22.255 0 2.5 4.00 08-01 2006
4.00 08-01 2006 8,271 .848 0 7,423 27,702 0 3.0 4.50 02.01 2007
4.50 02-01 2007 2,123 13,733 11,610 8,467 .668 0 7,599 33.089 0 3.5 5.00 08-01 2007
5.00 08-01 2007 8,467 -868 0 7,599 36.294 0 4.0 5.50 02-01 2008
5.50 02.01 2008 2,123 14,008 11,665 8.666 -668 0 7,779 43.442 0 4.5 6.00 08-01 2008
6.00 08-01 2008 8,668 .886 0 7.779 46,416 0 5.0 6.50 02-01 2009
6.50 02-01 2009 2,123 14,288 12,165 8,872 -909 0 7,963 53,336 0 5.5 7.00 08-01 2009
7.00 08-01 2009 8,872 .909 0 7,963 58,088 0 6.0 7.50 02-01 2010
7.50 02-01 2010 2,123 14,574 12,451 9,080 -931 0 8,150 62,788 0 6.5 8.00 08-01 2010
8.00 08-01 2010 9,080 .931 0 8,150 67.329 0 7.0 6.50 02-01 2011
8.50 02-01 2011 2,123 14,865 12,742 9,293 .953 0 8,340 71.819 0 75 9.00 08-01 2011
9.00 08-01 2011 9,293 -953 0 8.340 76,156 0 8.0 9.50 02-01 2012
9.50 02-01 2012 2,123 15,163 13,040 9,510 -975 0 8,535 80.447 0 8.5 1000 08-01 2012
10.00 08-01 2012 9,510 -975 0 8,535 84,592 0 9.0 10.50 02-01 2013
10.50 02-01 2013 2,123 15.466 13,343 9,731 -997 0 8,733 88,689 0 9.5 11.00 08-01 2013
11.00 08-01 2013 9,731 -997 0 8,733 92,646 0 10.0 1150 02-01 2014
11.50 02-01 2014 2,123 15,775 13,652 9,956 -1,021 0 8,936 96,561 0 10.5 12.00 08.01 2014
12.00 08-01 2014 9,956 -1,021 0 8,936 100,342 0 11.0 12.50 02.01 2015
12.50 02.01 2015 2,123 16,091 13,968 10,187 -1,044 0 9,142 104,080 0 11.5 1300 08.01 2015
13.00 08-01 2015 10,187 .1,044 0 9,142 107,692 0 12.0 13.50 02-01 2016
13.50 02-01 2016 2,123 16,413 14,290 10,421 -1,068 0 9,353 111.261 0 12.5 14.00 08-01 2016
14.00 08-01 2016 10,421 -1,066 0 9,353 114,710 0 13.0 14.50 02-01 2017
14.50 02-01 2017 2,123 16,741 14,618 10.661 .1,093 0 9,568 118,119 0 135 15.00 08-01 2017
15.00 08-01 2017 10,661 -1,093 0 9,568 121.413 0 14.0 15.50 02-01 2018
15.50 02-01 2018 2,123 17 ,076 14,953 10,905 .1,118 0 9.787 124,668 0 14.5 16.00 08-01 2018
16.00 08-01 2018' 10,905 .1,118 0 9,787 127,813 0 15.0 16.50 02-01 2019
16.50 02.01 2019 2,123 17.417 15.294 11,154 -1,143 0 10,011 130,921 0 15.5 17.00 08.01 2019
17.00 08.01 2019 .. 11,154 -1.143 10,011 133,924 0 16.0 17.50 02-01 2020
0
17.50 02-01 2020 2,123 17,765 15,642 11.408 -1.169 0 10,239 136,891 0 16.5 18.00 08.01 2020
18.00 08-01 2020 11,408 .1.169 0 10,239 139,758 0 17.0 18.50 02-01 2021
18.50 02-01 2021 2,123 18,121 15,998 11,667 -1,196 0 10,471 142.592 0 17.5 19.00 08-01 2021
19.00 08-01 2021 11,667 -1,196 0 10.471 145,329 0 18.0 19.50 02-01 202'
19.50 02-01 2022 2,123 18,483 16,360 11,931 -1,223 0 10,708 148,033 0 18.5 20.00 08.01 2'
20.00 08-01 2022 11.931 -1,223 0 10,708 150,647 0 19.0 20.50 02-01 L
20.50 02-01 2023 2,123 18,853 16,730 12,201 -1,251 0 10,950 153,229 0 19.5 21.00 08-01 2U..
21.00 08-01 2023 12,201 .1,251 0 10,950 155.723 0 20.0 21.50 02-01 2024
21.50 02.01 2024 2,123 19,230 17,107 12,476 -1,279 0 11,197 158,188 0 20.5 22.00 08-01 2024
22.00 08-01 2024 12,476 -1,279 0 11,197 160,569 0 21.0 22.50 02-01 2025
22.50 02.01 2025 2,123 19,615 17,492 12.756 .1,308 0 11,449 162,921 0 21.5 23.00 08.01 2025
23.00 08.01 2025 12,756 -1,308 0 11,449 165,194 0 22.0 23.50 02-01 2026
23.50 02-01 2026 2,123 20,007 17,884 13,043 -1,337 0 11,706 167,439 0 22.6 24.00 08.01 2026
24.00 08.01 2026 13,043 -1,337 0 11,706 169,609 0 23.0 24.50 02-01 2027
24.50 02-01 2027 2,123 20,407 18,264 13,334 -1,367 0 11,968 171,751 0 23.5 25.00 08-01 2027
25.00 08-01 2027 13,334 -1,367 0 11,968 173.822 0 24.0 25.50 02.01 2028
25.50 02-01 2028 2,123 20,815 18,692 13,632 -1,397 0 12,235 175,867 0 24.5 26.00 08-01 2028
26.00 08-01 2026 13,632 .1,397 0 12.235 177,843 0 25.0 26.50 02-01 2029
26.50 02-01 2029 2,123 21,231 19,108 13,938 -1.428 0 12.507 179,794 0 25.5 27.00 08-01 2029
27.00 08-01 2029 13,938 -',428 0 12,507 181,680 0 26.0 2750 02-01 2030
Totals 545,807 -55,945 0 489,862 0
Present Values 202.429 -20,749 0 181,680
-,
PrOJel;t1ons are esllmlilles bas~d upon expec1.i!lcf frrst year of It1crement, mal1t;,~t villues, ta~ rates, etc., all of which ire subject 10 c.hiilng~,
Ehlers and A:!;i~ociales, Inc.
Pag(! 2 sfhol"ls.,ng T1F30
.
.
.
HRA Agenda - 9/4/02
7.
Consideration to authorize payment of HRA bills.
Recommendation to authorize payment of bills, You will note there are no invoices
hom Kennedy & Graven, there appeared charges for CMIIP project which were not
authorized. They are adjusting invoice accordingly.
MINNESOTA
~ A !::!ml!!~f the National Asmdation of Housing and Redevelopment OiJiciab
INVOICE
August 27,2002
Monticello BRA
505 Walnut St
Suite 1
Monticello, MN 55362
2002 Minnesota NAHRO
Annual Conference and Training
DECC, Duluth, MN
September 18-20, 2002
.
Registration for:
Ollie Koropchak
Registration Fee:
Paid
Check # 70038:
Amount Due:
$350.00
$340.00
$ 10.00
? \ '::> w "-\ tD Z> V \ ~
l{;~~O
Thank You for your Conference Participation and continued support.
Please Remit Payment To:
.
2496 /45th Street West
Rosemount, MN 55068
phone: (651) 423.8145
toll free: (800) 242.6804
fox: (65 I) 423.8180
emoil: mnnahro@ll.net
www.housingcenter.com/mnnahro.html
Minnesota NAHR rs ~ ILi [J \\fl i:~ 1
2496 145th Street We D ~~15 w ~inl
Rosemount, MN 550 r AUG 28 2002 ill II,
I III i! I
. . I II
I 1_2 I
.
Monticello HRA
505 Walnut Avenue, Suite 1
Monticello, MN 55362
August 10, 2002
MC100-01 General
~n ~D,'\7
Invoice # 19781
Professional Services
Hours Amount
1.00
125.00
7/23/02 MTR District PAYGO
~.....----"....-----'" ----
1.00 $125.00
Total Due This Month:
Status of Account:
Current
$125.00
30 Days 60 Days
$0.00' $0.00
90 Days ~O+ Days
$0.00 $0.00
Total
$125.00
'A \ ':> 4 '-\ lo ~ e \ -I ~ ~ q Cf
.
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
000 MCCOMB GROm: Ltd.
0.0 REA L EST N
000 T A E A 0
_. RETAIL CONSULTANTS
August 19, 2002
Statement #3198
~ It \
'-\\0<;0 \9.-q
id-\ '? .
.
CITY OF MONTICELLO
505 Walnut Street
Suite 1
Monticello, MN 55362-8831
Atlenlion: Ollie Koropchak
STATEMENT - RE:
~
Previous Balance $ 6,869.73
Pavments Received 6,869.73
. Professional Services
Maximum amount per contract dated 5-13-02 $ 14,300.00
Less: Retainer 7,500.00
Payment 6,471.25
Subtotal $ 328.75
Expenses
Mileage $ 58.66
Computer 6.00
Reproduction 121.58
Fax 3.00
Report Production 5.00 hrs. @ $ 45 225.00
Subtotal $ 414.24
Total $ 742.99
BALANCE DUE $ 742.99
Terms: Net ten days. Interest (at the rate of 1.5 percent per month) will be charged on all
balances outstanding at the end of the month.-
.
222 South Ninth Street Suite 380 Minneapolis, Minnesota 55402 . (612) 339-7000 Fax: (612) 338-5572
ANOKA-HENNEPIN TECHNICAL COLLEGE
CUSTOMIZED TRAINING SERVICES
1355 WEST HIGHWAY 10 . ANOKA, MN 55303-1590
.mer 10: 00089681
Invoice Date:
Due Date:
Invoice Number:
Amount Due:
08/14/2002
09/14/2002
00022016
$500.00
Credit Card No:
Expiration Date:
Signature:
Amount:
Monticello Fire Department
PO Box 422
Monticello MN 55362
Please return this portion with payment
Customer 10: 00089681
Invoice Date:
Due Date:
Invoice Number:
08/14/2002
09/14/2002
00022016
Monticello Fire Department
PO Box 422
Monticello MN 55362
Remit To:
Anoka-Hennepin Tech. College
1355 West Highway 10
Anoka, MN 55303-1590
Attn: Tuition Office
Contact Phone:
Date
****
Description
***********
Balance Due
***********
08/14/2002 Asbestos Inspection August 1, 2002
$500.00
.
Total Amount Due:
$500,00
~
(
\:lQf\ - ').~S ~~ >\
~ ~~\:0-~
fJ
~ 4~~<1
~ ~/\~. '-\.- \JuS, % ~ .-
:lSD.CO
f.f ~ So <- 0-0
.
763-576-4799 · 800-247-5588 · www.ank.tec.mn.us
Minnesota State Colleges and Universities
An equal opportunity educator and employer.
BAAUN
INTERTEC
'-~~-
F:
P <:;...;;)e #::
1
CLIENT: I) 1 1 ; e f<ot--e,pchak
City of Me,nti ,::e lle,
Department of Economic Development
250 E Br'oadway
Monticello, MN 55362
IN\!, DATE:
INVOICE #:
PRO.JECT # :
CLIENT #
CLIENT REF:
o t:: I :) 'i I 0 2_
2117'30
BDXX:-02-045C
MOI~.:"i94
Proposed Front Street Grading
Excavation Observations
and Construction Materials Testing
Mont i ,::e 1 10:0, MN
FOR PROFESSIONAL SERVICES RENDERED FROM 06/15/02 THROUGH 07/12/02
EXCAVATION OBSERVATION
21:3.75
COMPACTION TESTING
221 . 00
===========~=========~=======~~========='==:============~~:=
INVOICE TOTAL
439.75
. AMOUNT PREVIOUSLY BILLED
AMOUNT DUE THIS INVOICE
.00
439.75
,,?O'"7CJ
~
~\9S~~~
Q\--:?'
Please pay from this invoice.
Terms: Due on receipt, 1'/2% per month after 30 days, 18% annual percentage rate.
We accept
--VISA'-'~ rae
~...---
.
L,
BRAUN
INTERTEC
. r N v 0 -. C E .
.
. I, .\
F'';;~ge #: 1
CLIENT: 0 1 1 i e VCI t-.o ~II:: h,::~ k
City of Monticello
Department of Economic Development
505 Walnut Street
Suite 1
Monticello, MN 55362
INV" DATE:
INVOICE #
PRO.JECT # :
CLIENT #
CLIENT REF:
08/21~,/02
2120::;:6
BDX X - 02 -(i4~3C
M06994
Proposed F0~nt Street Grading
Excavation Observations
and Construction Materials Test~ng
Monticello, MN
FOR PROFESSIONAL SERVICES RENDERED FROM 07/13/02
HPOUGH 08/09/02
COMPACTION TESTING
1,01':'8.50
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INVOICE TOTAL
1 ,01;:':::.50
~AMOUNT PREVIOUSLY BILLED
~AMOUNT DUE THIS INVOICE
43'} . 75
1~063.50
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Terms: Due on receipt. 1'/2% per month after 30 days, 18% annual percentage rate.
We accept
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BRAUN
INTERTEC
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Braun Intertec Corporation
NW 7644 . P.O. Box 1450
Minneapolis, MN 55485-7644
(952) 941-5600 . Fax (952) 833-4701
Tax 1.0. #41- 1684205
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CI_IENT: 0 11 i e f<or-'c,pchak
City Clf' Mcnticell,:,
Department of' Economic Development
505 Walnut Street
Suite 1
Monticello, MN 55362
INV. DATE:
INVOIC:E #
PRO.':ECT # :
CL_IENT #
CLIEI\lT REF:
0::3/26/02
2: 1 2 ()~:~ '.:~
BDXX-02-045C
MO/,;:.'-:'J94
COMPACTION TESTING
_____________________________a____.__
Compaction Testing
Hou t".s
15.50
RATE
47.00
Arn(::.unt
72::::.50
15.50
728.50
()ty
Rate
Amclunt
D i t"'ect E>q:::.enses
. Starldat-'d Pt-'CII::tOt-. (ASTM
T t" i P I:: h a t-.g e
D 69;3
1.00
(,.00
100.0000
40.0000
100.00
240.00
::;::40.00
Total COMPACTION TESTING
1,06::;:.50
** Total P0~ject BDXX-02-045C
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. Please pay from this invoice.
Terms: Due on receipt, 1'12% per month after 30 days, 18% annual percentage rate.
We accept
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nation-wide
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GENERAL
RENTAL
cu<na
"WE RENT IT. FOR YOUR CONVENIENCE"
GENERAL RENTAL CENTER OF MONTICELLO, LLC
216 SANDBERG ROAD
MONTICEllO, MN 55362
TELEPHONE (763)295-2300
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IMPORTANT: OVERNIGHT AND WEEKEND RI:NTALS MUST BE RETURNED BY 8:00 A.M.
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DESCRIPTION OF ITEM
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iJU' 'J>! HOUf~LY l'IUni'll.i1'! 1)IYfL'l l,Jn".i!,:"'Y!} \dCC1/"n
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Dealer agrees to waive certain damages and loss claims against Customer, which are provided for on the reverse
side of this contract, in consideration of the following:
A, Customer shall pay a fee of (:, iiJiD % of gross rental charges or $ per day; or
B, A valid certificate of insurance is provided Dealer prior to the hire of equipment, whereby Dealer is named an additional
lsured on an insurance policy, covering the risk of loss by damage, death or otherwise, of the subject equipment, and said insurance
,eing the primary coverage as against any other insurance which may be provided by Dealer.
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lAMAGE WAIVER ACCEPTED I HAVE READ AND I AGREE TO THE CONTRACT TERMS
)N THE FRONT AND BACK OF THIS DOCUMENT, THOSE TERMS CONSIST OF OUR ENTIRE AGREEMENT. NO ONE HAS ANY
JRAL OR OTHER WRITTEN REPRESENTATIONS OR PROMISES NOT INCLUDED IN THIS CONTRACT. I UNDERSTAND THAT
3Y NOT ACCEPTING THE DAMAGE WAIVER I AM RE-
,PONSIBLE FOR ANY AND ALL DAMAGE INCIDENTAL \ CUSTOMER SIGNATURE
JR OTHERWISE. I HEREBY ACKNOWLEDGE RECEIPT X
)F A COpy OF THIS CONTRACT.
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HRA Agenda - 9/4/02
Consideration of Executive Director's Report:
a)
Double Bull Archery - TheEDA approvcd GMEF Loan No. 020 for Double Bull
Archery on June 18, 2002, and on June 19, 2002, the proposed buyer (Double
Bull) notified the Office of the FDA that they had withdrawn from purchase of the
Lake Tool building. The EDA-Lake Tool loan payment is current and TlF
District No. 1-21 is deiicient.
Lake Tool - In a conversation with one of the owners, I was informed that they are
liquidating and hope the cash from the sale of the property covers the EDA loan.
Property is being acquired by a local business owner.
GMEF No. 021 - Received EDA loan fee from Tapper's Inc. for approved
$55,000 machinery and equipment loan. Loan documents are prepared and
reviewed by applicant. Closing anticipated for September.
MCCF Loan Criteria - MCCf dollars arc available through the Economic
Development Partnership of Wright County. The adjustable and fixed rate is
expected to be over prime rate meaning the program is truly gap financing and not
used as an incentive. Loan fee is higher than charged by most lenders.
Production Stamping - Les Wurm has been hesitant to apply fix the EDA loan for
construction. He has been intl)fmed of the need to have his construction financing
in place prior to permit issuance. '1'1 F District No. 1-32 ll)f Production Stamping
was approved by Council on August 12,2002. Grading and footings will be in
place this fall. Grounding breaking mid-October.
Working with two industries - ^ wet industry and a company who manufactures
wind generation equipment. The lattcr onc through DTED needs a rcsponsc to
thcir requcst tl)f proposal by August 26. (Mailed August 22, 2002.) Also need to
follow-up with I Iuot Manufacturing Company, St. Paul, the company visited by
the Prospect Team in late June. 8/19/02 - Huot Mfg has not received an otTer to
purchase their property 1[om the YMCA; therefore, visit to Monticello on hold.
State Grant - The State of Minnesota was out on August 26 to monitor the city
ledgers and documentation for the $500,000 grant the city received and lent to
Twin City Die Castings. They will toured the bcility. The effective grant close-
out date was June 1, 2002. The city files were in order with a couple of minor
things to do: lIRA at their October meeting will need to discuss Fair Housing
issues. 'l"he company has created 40 new full-time jobs and another 20 full-time,
temporary jobs at the City of Monticello. The job goal was 85 and wage goal for
Federal monies is at least 51 <Xl for LMI. Their ratio was 17 LMI and 23 Non-
LMI. Federal dollars will not accept the 20 temporary workers as part of the job
goal. Doug said the Monticello Llcility is making money. Because the grant
close-out date was June 1,2002, the Council will hold a public hearing to extend
the job and wage goal date to July 26, 2003, two years from the date of occupancy
and will discuss the status of the project (more requirements). The Contract for
b)
c)
d)
c)
f)
g)
.
.I)
k)
m)
.
11)
0)
p)
q)
.
HRA Agenda - 9/4/02
h)
i)
Private Redevelopment already states two years from occupancy date.
I RTI - Copy of letter and receipt of check fl)f balance of administrative costs.
On August 27, Chuck Van Heel, Steve Heimbuch, Mayor Helsaas, Wolfsteller,
and myself met relative to Midwest Graphic's building and proposed East 7 Street
incubator commercial/industrial project. May request TIF on the East 7 Street as
it applies to industrial use.
CompuCredit - Attended a reception for CompuCrcdit in S1. Cloud on August 21,
2002. CompuCredit purchased the receivables 1rom Fingerhut. They have
renewed a lease with Duanc Schultz on the Thomas Circle building for another
couple of years. The company president and vice president from Altanta, GA,
told they have future plans to expand their workforce by 30 in Monticello.
Current employment retained seniority and an improved benefit package. Invited
them to Monticello tllr tour and mect Council, etc.
NAlIRO Confcrencc - Per recommendation ofHRA, I'm registered fln a
conference in Duluth, September 18-20.
UMC - (i-roundbreaking now scheduled for Friday, September 13, afternoon.
FDA loan approved, State Grant application being submitted on August 30 by
I,enny Kirsch1.
Camp Plan Amendment - The Council approved the Camp Plan with the
recommendation a Task Force be established for implementation of the Plan such
as [-94 interchanges, infra structure improvements.
Budget - The I-IRA's request for $100,000 still remains in the proposed 2003 City
budget.
Landmark Square under construction. Received letter was lcnder verifying
construction financing in place. No proof of insurances or executed cross
easements.
Front Street project - Carlson housc down, may still need clcaning up around area.
Parks Dept to seed. Street projcct due to be completed ......... so Hans Hagen can
begin. As soon as thc plat is recorded will deed the Carlson property 1[om the
lIRA to the City and transfer $35,000 from City non-restrictive and $48,000 from
I IRA nOIH'estrictive dollars into TIF District No. [-22 (appraised price of raw
land).
Front Porch project - Under construction - need to record Contract at County.
I)
2
.
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April 29. 2002
--
MONTICELLO
rvtr. Steve Budd
Integrated Recycling Technologies. Inc.
9696 Fallon Avenue NE
Monticello, rvtN 55362
Re: Contract for Private Deve lopment among I R TI, the /-I RA, ancl the City of Monticello dated June
I \, 200 I.
Dear Steve:
Per ARTICLE Ill, Section 3.3. Payment of Administrative Costs. page 7. of the Contract: The Developer
agrees that it will pay upon demand by the Authority. Administrative Costs (as hereafter defined).
The Developer deposited $5,000 on March 12,2001, to be applied toward Administrative Costs.
Attached are invoices totaling $6,51..1-.00 which were paid by the Authority for preparation and filing ot'
TI F District No. 1-28 and for preparation of the Contract for Private Development (the Adm in istrative
Costs).
Please remit $1,514.00 for out-of-pocket costs incurred by the Authority (the difference between
the Administrative Costs and the Developer's deposit). Mail to Monticello HRA, Attention: Ollie
Koropchak, 505 Walnut Street Suite L Monticello, rvtN 55362.
On February 6,2002, the /-IRA approved the Certificate of Completion for the property located at 9696
Fallon Avenue NE and a copy of the certificate was forwarded to I RTf.
Should you have any questions. please contact me at 763-271-3208. Thank you for your attention to this
III alter.
Sincerely.
!-IOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR TilE CITY OF I\rIONTICELLO, MINNESOTA
~~ \~ Cl\v- ~ ~
Ollie Koropchak
Executive Director
c:
TIF 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
.
INTEGRATED RECYCLING TECHNOL 07.97
9696 FALLON AVENUE
MONTICELLO, MN 55362
STATE BANK OF ROGERS
ROGERS, MN 55374
75-918/919
26735
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