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HRA Agenda 01-02-2002 AGENDA MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY Wednesday, January 2, 2002 - 7:00 p.m. 505 Walnut Street - Bridge Room C 0111111 issi oners: Chair Dan Frie, Vice Chair Brad Barger, Steve Andrews, and Darrin Lahr. Council Liaison: Brian Stumpf. Staff: Rick Wolfsteller. 01lie Koropchak, and Lori KraeJner. 1. Call to Order. 2. Consideration to approve the November 14,200 I lIRA Workshop minutes and December 5,2001 ]-IRA rninutes. 3. Consideration of adding or removing items fi\lm the agenda. 4. Consent Agenda. 5. Consideration to approve amending the Contract for Private Redevelopment between Master's Fifth Avenue, Inc. and the l-m.A. 6. Consideration to review returned non-binding letters of intent for Block 52. 7. Consideration to approve a recommendation of the Marketing Subcommittee to rezone and to develop the City (Remmele) parcel from Commercial to Industrial forwarding the recommendation to the Planning Commission. 8. Consideration to set a date for interviewing candidates for appointment to the BRA. 9, Consideration of authorizing payment of December HRA bills. 10. Consideration of Executive Director's Report. ] 1. Committee Reports: Marketing - Barger 12. Other Business. 13. Adjournment. HRA WORKSHOP Wednesday, November 14,2001 Commissioners: Chair Dan Frie, Vice Chair Brad Barger, Steve Andrews, Darrin Lahr, Bob MUlTay and Council Liaison Brian Stumpf Staff: Rick Wolfsteller, Ollie Koropchak, Jeff O'Neill and Lori Kraemer Guest Mark Ruff, Ehlers & Associates Does the HRA want to proceed with redevelopment of the downtown or Block 52? Executive Director Ollie Koropchak provided a list of CUlTent activities within TIF District No. 1 -22. Recap tax increment available to proceed and impact 5 year rule and $2 million dollar bond sold. Mark Ruff of Ehlers & Associates advised the effect of the sale of the bond and the 5 year rule. Still restricted on Block 52: limited in what kind of developer assistance. Koropchak asked Mark if the City needed to ask for a special legislation and Ruff stated no. RutT advised to take TIF districts on a case by case basis. Of the money available due to the 5 year rule, we are limited to approximately 25ryo. According to Mark Ruff the McComb's study is reputable, not necessarily needed tor just Block 52 redevelopment. O'Neill stated that the City Planner's firm could provide the type of information that is needed for the comprehensive plan. Also noted was that if a larger retailer came to town they would most likely do their own footwork and not necessarily rely on the City's study. It was the consensus of the HRA members that they were not interested in spending that type of money tor the study as they felt it -vas not beneficial to the HRA, Koropchak also asked the HRA to decide if they were interested in proceeding with redevelopment of Block 52. O'Neill added that he didn't feel the City should wait for a developer to approach them, but should prepare for the possibility and Ruff concurred that the City could land bank. Frie added that \vith the City's lot and the parking lot, and the possibility of purchasing Springborg, Johnson, and Froslie they \vould already have approximately 3/4 of the property. Ruff advised that they could bring in a "parade of developers", possibly two to four retail or other type of developers, and get their input. It was the consensus of the HRA members that they were in agreement to proceed with a plan for Redevelopment of Block 52 and were not opposed to having developers come in and submit their input and scout the properties on Block 52 for possible acquisition. The workshop meeting concluded at 10 PM. HRA Chair Recorder 2 MINUTES MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY Wednesday, December 5, lOO! - Meeting - 7:00 p.m. 505 Walnut Street - Bridge Room Commissioners: Chair Dan Frie, Vice Chair Brad Barger, Steve Andrews, Darrin Lahr, Bob Murray and Council Liaison Brian Stumpf Staff: Rick Wolfsteller, Ollie Koropchak, leffO'Neill and Lori Kraemer Guests: Clint Herbst, City Council Planning Commission members Roy Popilek Dick Frie, Robbie Smith and Rod Dragsten Mike Benedetto, School District #882 Supt. Lisa Graphensteen and Sheri Harris, CMHP Barry Fluth. Masters yh Avenue 1. Call to Order. Chair Frie called the meeting to order at 7:05 p.m. 2. Consideration to approve the November 14. 200 I HRA minutes. A MOTION WAS MADE BY BRAD BARGER TO APPROVE THE MINUTES OF THE NOVEMBER 14,2001 MEETING. BOB MLJRRA Y SECONDED THE MOTION. Motion carried unanimously. 3. Consideration of adding or removing items from the agenda. Koropchak advised that Barry Fluth of Masters 5th A venue requested to update the ERA regarding the former Amoco site. This "vas added as item 6.5 on the agenda. Koropchak added commission term appointments as item 11. 4. Consent Agenda. None 5. Presentation: Monticello Housing Studv and Wright Countv Housinl! Analvsis. Central Minnesota Housing Partnership. Inc. Koropchak advised the members and guests that Some months ago the HRA authorized participation in a Wright County Housing Analysis Study at a cost of$500. The study conducted by CMHP was coordinated through the Wright County Economic Development Partnership. The HRA authorized the study for the purpose to update the I-IRA Minutes - ] 2/05/0 I housing stock data of Monticello based on the latest building permit information and demographic data (population and household, age distribution, household income and employment). The study and data also meets some requirements set forth in the MN TED grants to the City. Lisa Graphensteen, CMHP, advised the HRA that they are a non-profit organization who work in technical assistance to communities to determine what the affordable housing needs are in their community. She advised that the study area included the City, Monticello Township and a portion of Silver Creek Township. Graphensteen advised Monticello School Supt. Benedetto that the data was current for 2000. Dick Frie, Planning Commission Chair, asked that if Monticello is currently second to St. Michael, could she compare that to what it would be in 2005 and she stated the St. Michael area has nearly 10,000 more than Monticello, advising that this includes several other cities and townships around St. Michael. Lisa also stated that the community actually dictates what may happen such as an industry moving in, closing, etc. Benedetto asked for the "adult" mcdian age of households and Graphenstecn stated she did not have that information, however. O'Neill advised that he would get this information to him. Graphensteen stated that Monticello was fourth in the state ft)!' owner/occupancy increases. Steve Andrews questioned whether the City should steer to make sure there are thc appropriate types of housing available and 0 'N cill stated the land use plan is in place for this purpose. O'Neill also advised that the City Council is looking for higher-end housing and the Planning Commission is currently working on the land use plan. Median sale prices are in the middle for Monticello and Wright County has the highest median sales priced homcs outside of the Metro area according to the study. This does not includc new construction, only existing homes. Lisa also provided information on recommended units, stating the study is not looking to dramatically change housing stocks. and that this is a recommended plan for over the next 5 years. She did state the numbers in the study are conservative. Regarding affordable housing. she explained that 60% of the area media income is approximately $31,380 for a 2 person household and $44.820 for a 4 person household. This meets the needs of a eombination of existing homes as well as incoming. Dick Frie asked if this information could be available for the Planning Commission as they plan to update their comp plan. O'Neill asked about the programs that Some cities have for older homes going up for sale putting in place codes that homes need to meet before they can be sold. The city would have funds set aside to purchase these homes and then renovate as part of the rehab and redevelopment recommendations. Lisa stated there are monies available for cities to do this. Dan Frie stated that Monticello has some barriers to overcome such as 1-94. the river to 2 HRA Minutes - 12/05/0 I the north, land owned by NSP that cannot be developed, the YMCA park that cannot be developed, as "veIl as problems with the township, compared to surrounding cities. Lisa explained a study that compared heavy rental as in relation to crime and found that there was no relationship found. They asked Benedetto what he .has seen regarding "problem kids" and he advised that there are about 34 problem kids in the middle school as compared to St. Michael who have only four. He did state that there are approximately 850 students in the Middle School and St. Michael is much less than that. Benedetto also stated they see this type of problem more with apartments, starter homes, and mobile homes. Sheri Harris, CMHP, then addressed the members with information on a housing plan and provided some resources. with their goal being to help coordinate a plan for the City. They will also act as a non~profit developer if no other can be found. One program is for assistance up to $15,000 in gap financing/scattered site program, stating this money is available right now for 16 counties. Also HAF assistance which is down payment/closing cost assistance which could be in addition to the $15,000 gap assistance. The cap is $120,000 for total house sale. ECHO. a down payment funding program, is also available. CASA is a program that offers 5.95% mortgage interest rates. Sheri advised that CMHP also develops multi- family housing and provided a list of 200 1 projects which have already been funded. She stated the next funding round is February and July of2002. stating there is a combination of state and federal Funds available. Several things that they look at for in a'vvarding funding are things like the waiving of city fees. local contributions, as well as need in the area. Sheri updated the HRA on the project on 5th/6th Streets and Minnesota Street, stating there will be approximately 10 owner/occupied units as a scattered housing program and the project is moving ahead. Great deal of interest from the Gl'vlI-:IF. They did submit the information and the board will be looking at it next week. MHFA is out of the picture. GMHF would potentially provide additional gap financing as well. There have been conversations \vith all homeowners who seem to be receptive as well. Sheri will have more information at the January meeting. She is anticipating that the HRA would be ready to start the TIF district process. 6.5 Update bv Barn' Fluth rel!arding the former Amoco site and the reClUcst tor additional assistance. Barry Fluth. Masters 5th A venue. approached the HRA with a final plan of their project which includes a restaurant. apartments and carriage houses, stating they are close to 3 HRA Minutes - ]2/05/01 having agreements "vith the current property owners and they do have an easement agreement. The main change from their previous plan is that they purchased the City lot and would like to extend the project (parking) all the way behind the buildings. Brian Stumpf asked what that would do to parking there with rentals which are above several of those buildings and they discussed the use of joint parking. Fluth stated it will actually provide additional parking, stating the parking is actually being extended but the buildings would remain the same. Part of the agreement would be there would be no longer access between the buildings and no parking on the vacant lot. They will have an agreement with the attorneys that they will have access between the properties. Koropchak stated that previous approval was for an amount up to $ 185,000 to acquire and demolish the Amoco site. Additionally, the HRA offered assist for up to $45,000 which would cover the Paulson, Hammond and Koppy properties for development of off- site parking. In addition. they offered up to $124,000 assistance for demolition of the attorney buildings. Koropchak noted that Fluth was to have the agreements with all property owners by November I, but is not quite there at this time. The deadline for demolition is 3/31102. She noted this is pay-as~you-go assistance and advised the importance of expending the monies by 6/1/02. Fluth noted there is a signed lease from the restaurant which takes up 2/3 of the retail space. Hoping to begin demolition/construction right after January I and the restaurant to be in place by 6/1102. Fluth is asking for $30,000 in assistance to acquire the additional two lots for parking. Frie stated the HRA could use $75,000 of the $90,000 initially allotted, but also noted that this would be for one project versus two. Fluth also advised that they do not need all the parking for their project alone and would not be opposed to the attorneys sharing parking, as long as the City is helping to share in the cost. Their plan is to leave the existing garage in place which would take up two parking spaces, but the current apartment tenants do use it to park in. It was noted that possibly ifthere were to be a change in ownership the garage could be moved at that time. Koropchak stated that in reality there would be 4- spaces lost with the garage not being moved as you could not park in front either. It \vas noted that the garage is remodeled and not in disrepair. O'Neill advised that there will be a possible deficiency in parking and they would have to bring this back to Council. Housekeeping item. A MOTION WAS MADE BY BRAD BARGER TO PRO-RATE PARKING SPACES BASED ON THE PREVIOUS MOTION ON THE PROJECT FOR PARKING: NOT TO EXCEED $30.000. DARRIN LAHR SECONDED THE MOTION. Motion carried unanimously. Koropchak advised that the private redevelopment contract \villneed to be updated. 4 HRA Minutes - ] 2/05/0 1 7. Review the impact of the tax increment revenues given the reduction of class rates compared to the increase in land costs for industrial development. Koropchak advised that a high-tech manufacturing company working through a general contractor has visited Monticello previously. Prior to the reduction in class rate, the company was offered 6 acres of land for $1 with some site improvement costs covered. The project consisted of a 60,000 sq. ft. building. Given the ehanges enacted by Legislators, the general contractor contacted Koropchak fer the change in the level of TIF assistance. Working with Paul Bilotta on behalf of Chadwick/Bowers, plans are for the Council to order a feasibility study fer infrastructure development and request annexation of 60 acres at the December 10 Council meeting. This at least will provide a diversity of land OWners. Chadwick has hired CB Richard Ellis to market the property: however. no land price has been established. At the 2002 City Budget 'vvorkshop. the annual $75.000 City contribution for industrial development was deferred. Three reasons: tight budget. no plans for reserved monies. and no continued matching commitment by the HRA. O'Neill mentioned the availability of the City/Remme1e commercial property as a possible land trade. The City fund balance is $265,000 and the HRA fund balance is approximately $300,000. Additionally, in concept the HRA earmarked the TIF revenues from District 5 (Construction 5) and VI (Raindance) fer industrial development. These districts were created prior to the pooling restrictions. Initially, Koropchak believed the intent was for the HRA or City to acquire land for industrial development. An after of $3.000,000 fer the 180 acres ($16.666 per sq. ft.) of undeveloped Chadwick property was rejected by the Council. Koropchak asked what is the fellowup plan of the City and the HRA'? The IDC and Marketing Committee will address the same question. The HRA members discussed the Remmele property possibly being re-zoned to Industrial versus commercial. There was no action required. Darrin Lahr asked to be informed if the Planning Commission were to hold a work session regarding the Comprehensive Plan. 8. Consideration of authorizing pavment of November HRA bills. A iVIOTION WAS MADE BY BRAD BARGER TO AUTHORIZE PAYMENT OF THE NOVEMBER HRA BILLS. STEVE ANDREWS SECONDED THE MOTION. Motion carried unanimously. 5 HRA Minutes - 12/05/01 9. Executive Directions report. Koropchak provided the report adding that the Front Street/Hans Hagen project is moving forward and that Hans Hagen has accepted the HRA offer of $300,000 for finished pad sites. WSB will do the RFP and work with their engineers so it is ready in the Spring. Koropchak wiIlmeet with the attorney and get the private redevelopment contract signed. Chair Frie was asked to initial extending the agreement. Mike Cyr's project is still in progress, stated he may need to add 4 to 5 more units as his bids are coming in higher than initially expected. Block 52 letter is being written and Koropchak asked if this letter should be sent to all owners on Block 52 and the members concurred. Included in the cover letter is the option for rather than a cash buyout. the opportunity to re-invest and enter into a partnership or condo it as a partial owner. Not mLlch for industrial leads - but there have been two leads on the Midwest Graphics building. 10. Marketing Committee - meets Friday, 12/7/0 I. 11. Other Business Koropchak advised that Bob Murray's term is up in December. Bob stated he would like to have someone else step into his position due to the demands of his schedule. Koropchak was advised to advertise. The members will review the applications and work toward appointing someone in February. Koropchak and the members thanked Bob for his time on the board. 12. Adiournment. A MOTION WAS MADE BY BOB MURRA Y TO ADJOURN THE MEETING AT 9:30 PM. BRAD BARGER SECONDED THE MOTION, Motion carried unanimously. HRA Chair Recorder 6 BRA Agenda - 01/02/02 5. Consideration to approve amendin!! the Contract for Private Redevelopment between Master's Fifth Avenue. Inc. and the HRA. A. Reference and Background: At thc Dccembcr HRA. meeting, thc commissioners approved additional assistance in an amount not to exceed $30,000 for parking lot development on thc Hamond and Fluth/City parcel from TIF District No. 1-22 Surplus Dollars. Amount pro-ratcd per stall based on Cyr/ Attorney proposal. The Cyr/ Attorney proposal included parking lot development of 11 stalls on thc Hamond/Fluth property at TIF assistancc of$45,000 or $4,090 per stall. Thc new plan shows 9 stalls on the Hamond and Fluth lot or $4,090 times 9 equals $36,818. The additional up-front TIF assistance will be not to exceed $30,000 upon submission of evidence of construction completion and payment. rluth and his architect reccived DA T approval Jor design suhject to certain quality of extcrior material on Dccember 18 with thc signage dcsign referrcd to the Building Official. The projcct no longer known at the Amoco site is now "Landmark Square". Attorney Greensweig has bcen authorized to arnend the Private RcdevcIopment Contract. The amendment should be available for approval hy the HRA and Fluth at the January meeting. This is a housekeeping item. B. Alternative Action: 1. A motion to approve the amendment to the Contract for Private Redevelopment between thc HRA and Master's Fifth Avenue, Inc. 2. A motion to deny approving the amendment to the Contract for Private Redevelopment between the lIRA and Master's Fifth Avenuc, Inc. 3. A motion to tablc any action. C. Recommendation: Recommendation is Alternative No. I. D. Supporting Data: None. Copy of amendment submitted at meeting. HRA Agenda - 01/02/02 6. Consideration to review returned non-binding letters of intent for Bind, 52. A. Reference and backf!round: At the Dceember !-IRA meeting, thc commissioncrs directed the Executive Director to mect with all the property owners of Block 52 relative to interest to sell for redevelopment. I met with Kathy Froslie (very interested), Steve Johnson (very interested), Scott Douglas (not interested but willing to make facade improvements to tie in with a new project), Poin.~r (in Texas, voice-mail wcntto his attorney, mailed letter of intent to attorney), Springborg (very interested), did not meet with Heaton (not interested but mailed letter of intent), and Kjellberg never returned phone call for appointmcnt (mai led letter of intent). Each party was asked to return the letter of intent by January 2, 2002. Returned letters submitted at meeting. The intent of the letters was to define feasibility and bOlllldary lines for a potential project. HRA Agenda - 0 I /02/02 7. Consideration of suoportin!! recommendation from rDC to aC{Juire a site for industrial development - Location of the site possible Remmele Site or Industrial Portion ofthe Gold Nu!!get Parcel. A. Reference and Back!!round At the IDC meeting of December 20, 200 I the IDC discussed the Marketing Committee's suggestion that the RemmeIe parcel be changed from Commercial use to Industrial use. The Marketing Committee is a subcommittee of the IDC. 'fhe reasons for this suggestion can be found in the attached summary provided to the IDC. As a result of this input and additional input by Jeff 0 'Neill, and more input from members of the Marketing Committee at the IDC meeting, the IDC made the following motion: " Motion to control a site for industrial development and to commit to construction of utility and road improvements in 2002 for either the H.emmele or Gold Nugget parcels. Prepare a time framc for the H.emmele and Gold Nugget parcels, beginning with the infrastructure improvement completion datc and working backward identifying the applicable steps and time frame to accomplish control of site and infrastructure completion. This rccommcndation to be forwarded to the Planning Commission and the City Council". This motion originated as a suggestion by Jeff 0 'Neill and stemmed from the following points of discussion: In response to the Marketing Committee's suggestion to develop the Remmele piece for Industrial Development as opposed to the longstanding designation for Commercial Development, O'Neill provided a detailed summary of the preliminary draft land use plan update recently reviewed by the Planning Commission and Council. In his summary he identified various reasons why the Remmele site has been long identified as an important parcel in a future commercial area. He noted that there may be valid Jand use eriteria supporting a change from Industrial to Commercial. The fact that the City owns the parcel should not be the single criteria used to support changing the zoning from Commercial to Industrial. He went on to say that the land use plan update has been approved in preliminary draft 10r111 and now must be presented to the public and various commissions for comment. If the Remmele site is to be converted to industrial uses, now is the time for the discussion. He also identified the status of the Gold Nugget court case noting that a critical mediation session is scheduled for January 10, 2001, at which time the disposition of the case could be known. He noted that City acquisition of the industrial portion of the Gold Nugget site, either by purchase or via swap (Remmele), remained a possibility. lie agreed that City ownership of industrial land is critical to getting industrial development going, but thought that use of the Remmele site should be considered after other viable options are HRA Agenda - 0 I /02/02 exhausted. The recommendation by the IDC noted in bold above evolved out of the discussion that ilJllowed. Essentially, the recommendation asks the City Council to do what it takes to get land under control so that we ean compete effectively for quality industrial development. It is a reeommendation that can be supported hy the City Administrator and has a chance to get support from the Planning Commission and City Council. B. Alternative Actions ] . Motion to adopt the recommendation by the IDC and forward such to the Planning Commission and City Council. 2. Motion modiIying recommendation made by IDC or adopt a completely diflcrent motion. C. Staff Recommendation It is the recommendation of the City Administrator and the Deputy City Administrator that the HRA accept the recommendation by the IDe and forward it to the City Council. It is our view that ownership of industrial land is critical to our ability to compete given the current situation with industrial land in the hands of a limited number of private parties. It is also our view that use of the Remmele parcel for industrial uses should be eonsidcred after other options are dee111ed not fcasihle by the City Council. D. SU{JDortinf! Data Planning Workshop minutes of September 18. 200 I Draft minutes including IDC recommendation of December 20, 200 I Acreage map City of Big Lake Industrial Park background information Marketing subcommi ttee of the IDC recommendation 2 ....J MINUTES Planning Workshop September] 8.200] - 7:00 PM Present: Bruce Tlleilen. Roger Carlson, Clint Herbst. Rick \Vol[stcl]cr. Brian Stumpf. Mayor Roger Belsaas. Jeff O'Neill. Steve Griuman. Ollie Koropchak. Robbie Smith. Richard Carlson, Planning Commission Chair Dick Frie. Roy Popilek. Rod Dragsten. Representatives from Gold Nugget, Horst Graser and Sha~ln Weinand Acting Chair Clint Herbst called the meeting to order at 7:05 PM. Deputy City Administrator O'Neill provided a brief recap of the purpose of the workshop regarding Gold Nugget land use as well as the scope of the Comprehensive Plan update study. Steve Grittman. City Planner. provided a brief description of the previous proposal by Gold Nugget from the Fall/Winter of ] 998 which was primarily single family residentiaL noting that the City's comprehensive plan states the primary use as residential. Grittman also noted that the southwest corner of the proposed project sho\ved commercial use, and that is were the project ended when the Planning Commission approved the preliminary plat. Grittman advised them on the status of approval/processing, as well as listing land use alternatives. ,..) Dick Frie asked the City Council if they were unanimous in favoring annexation of the entire Gold Nugget parcel. The Council noted that in time they would like to see the entire 220 acres annexed. but not all at once, and that it may depend on what is proposed by the developer. They discussed again various options including extending Cedar Street installing a lighted pathway system, as well as a possible mixed use oflight industrial with residential. Ollie Koropchak, Economic Development Director, stated that the City's approximate available acreage for industrial land is ] 00 acres, and advised that this includes two large lots \,vith several smaller lots. O'Neill also advised of the Chadwick 180 acre industrial parcel available which already includes utilities, etc. Mayor Belsaas stated that staff repeatedly gets requests for land and the City does not have any to offer at this time. These people often do not want to deal with private developers but would rather deal directly with City staff. There was discussion that perhaps residential along Highway 25 would not be appropriate. and also if it would be appropriate to mix industrial with residential. Grittman added that with some creative planning there could be a softened transition between industrial and residential. It was noted that there are different types of industrial as well and that light industrial may even be a better buffer between the residential and Highway 25. !J O'Neill questioned the layout of the Gold Nugget properly in that it is not completely flat so hov,! would it be alTanged for mixed use to make the most use of this land and would it be large ~ ~ enough for a residential neighborhood with enough buffer for industrial/commercial. Grittman advised that it is doable if a green way corridor was retained as a break point between the two land uses. He noted that a 70 acre area for industrial uses would be created if a frontage road along Hwy 25 was used as a corridor for industrial development. It was the consensus that a 70 (7 \ l.\ . - acre area for industrial land use was appropriate. It was the consensus that all were in support of the land use as a mix of residential and light ~.. industrial. Also noted \l.:as that MnDOT may not be in favor of entrances to Highv..'ay 25 nor \vOLdd the City want entrances off8Slh Street. Grittmnn also suggested the possibility of bringing back a business campus. making Sure the area becoming the buffer would be a nice buffer. Shawn Weinand stated that ofthel 00 acres he owns, there are only 2 acres of industrial with the remaining land being a business campus. Weinand felt the City may wam a different zoning where they would haye more choices. It was noted that the developers of Gold Nugget have previously \.\!orked very \~'ell \yith the City and that hopefully that would be the case once again. Horst Graser, Gold Nugget, questioned about the infi'astructure to work with regarding industrial and commercial. noting that he doubted they would be allowed access to Highway 25 for residential use. Also are there road limitations on the rest of the area. 0 'Neill stated utilities would have to be installed depending on what type of zoning. probably upgrades if the use was for lam:er industrial. but also noted that the Citv shouldn't let these utiJitv limitations dictate land - '. use. Koropchak also advised that the IDC has not made any formal recommendation but are encouraging City Council and Planning Commission to make Sure industrial land is available. It was advised that the Northwest corridor is another area available for industrial land with freeway accessibility. it is contiguous to the City. and utilities would come over time. ~. Regarding the comprehensive plan study, Grittman advised that it would need to be amended regarding the Gold Nugget area. Regarding the Southeast Monticello Extraterritorial Area, it was noted that many areas around the City are under development pressure. TIle East and Southeast areas of the City have really used up the utilities and growth would IlO to the West or South of existing Citv limits. The Citv has now received ~ - - ... "'" a lot of interest in this area. Mayor Belsaas stated several concerns with some starter housing mixing in with higher end recently. Also added that the area near the Monte Club seemed to be a good Spot for higher-end housing. It was stated that the City Council had recently authorized a feasibility study in this area. Consensus is to hold any action on amending the camp plan for now until the feasibility study is completed It was the consensus of the members to set new standards regarding residential districts prior to the first of the year. · Regarding Commercial Land Use Planning and the Chad\'\'ick 1-94 frontage area, Grittman noted that this area is guided for industrial and there was discussion previously on moving it to commercial. The owner stated no retail, but office/light industrial would be a more positive zoning, visibility would be a positive. The consensus was to leave it as it is for now. l. ') \L\ Regarding the County] 8/1-94 Interchange Area it was advised that the City is participating with MnDOT in creating a full interchange in this area, Current comp plan calls for industrial with a small amount of commercial in that area. It \I\'as asked if this converts to a full interchange would the City want to include consideration of an expanded commercial land LIse designation as opposed to industrial. Mayor Belsaas stated he felt it would be more attractive to commercial; Grittman stated access to the freeway would be beneficial to industrial and the traffic pattern brings so many people by there. They support looking at commercial versus industrial. Other Potential Changes - The Paumen property is in conflict with the City and MOAA land use plans if it is proposed as residential/industrial; may need to look at buffers near the golf course if this were to occur. It was advised to look at the land near Osowski' s in more detail as well. Interchange Location Options ~ 18 and 194, as well as the Orchard Road area. Regarding the idea of an interchange at Co Rd 39. it was noted that it doesn't meet the rural spacing guidelines according to MnDOT. It was asked if there was any interest in actively pursuing that as an interchange location. The consensus was to see\vhat evolves with the area near Osowski's at Orchard Road. Also discussed was collector/arterial road network to support local traffic as freeway traffic is looked at. It was the consensus that there is a need to get 7th Stl:eet to the East and West through Soon. Utility Service Area - Grittman stated they would request tIle City Engineer to develop a utility service map rather than having to do a study each time a developer approaches the City. · Optional Approaches to Boundary Adjustment Process · Statutory Annexation Orderly Annexation Agreement Options. It was the consensus to work with the township, and to identify larger areas outside of the City that should remain rural in anticipation of future urban development. Grittman concluded with stating it is stafr s expectation to get something put together so it would be available for the next development season and stated he would like to get something back to City Council and Planning Commission by February that they could adopt. Would probably need a few more meetings to complete it, Chair Frie question where the Council and Staff stood regarding annexation at this time and the Mayor stated there are only two parcels, Groveland and Remmele, being considered at this time, the others are on hold. ,\ Brian Stumpf added that the Fire Department is discussing the possibility of a new fire station south of town and would ask that the City keep that in mind when considering land use. He 3 \ i~ stated that growth is continuing in that direction and there are good arterial roads that would give them access through the City. Grittman advised they could include this area in their study. ....... Robbie Smith brought up the school district crisis with low enro]Jmem and feels that the City as the governing body should be in tUne to this. and the need to keep working with the school district. O'Neill advised that they would include them in the camp plan discussions as well. Grittman stated that a standard fonnat for the camp plan update will be available at the next City Council and Plannim.: Commission meetinas. ... ... The meeting was adjourned at 9 PM. Recorder r r 4 IL\ MOYICL-ft0J C())1VYl il-~f..e.. ,t LD/11/TJeM&L-t,' [VL- prt:- 12/ tjJ/ D I APPROVED IDC RECOMMENDATION OF DECEM BEll 20, 2001 (The motion as written will be approved in the December 20 lninutes on January 17,2002.) Thc IDC approvcd the following recommendation: To control a site for industrial development and to commit to construction completion of the utility and road (infrastructure) improvemcnts in 2002 for either thc Remmelc or Gold Nugget parcels. And to prepare a time frame for the Remmele and Ciold Nugget parcels, beginning with the infrastructure improvement completion date and working backwards identifying the applicable steps and time frame to accomplish control of site and infrastructure completion. This recommendation to be forward to the Planning Commission and City Council. 6)1 , ~II~'- I I ; r ir! ,a ~81 (') _. (j q-. '1;jq ;:) 0 s;::"d ..., ..,~~ "d~=:s >- ;:to q g 0- J'JO o tTi ~ ~ ;> l1-.;",z t>J:-O :0 r'l -< -1 n If'l fTl:p. .. rn-.; :OI ;:::rnf'l t>t> -U<;Jf'l -UfTlx -Uln z rn ClUl-U ;c-.; t>o- 2:;::0 02Z "'''0 fTl;U-" :0 r" rTi '" no zor 0;:::-.; -.;1JfTl C:o -"-.;Ul -fTl f'lOUl r _ O-"x ;0 <0- f'l;::0'l ;0 _ -<;J .". " --n f'l' :0 OV1fTl Ul / r11~ ~ f r ;>1 '-, c1 :J:l 01 '" (;1 1::: ;;J ,::;1 :::; .~,'1 :;, -'-. .1 ." ", '" ;>1 .... ;;; ,.. Q .... ..... .[....,.... I ...., 1 \. I /. '.~~ .......~ I I I I , I I I 'h ". 0'" \., ? 0' '" ~ ;>'l ~ 8 m ....., " ....,...... ? ~ ? " "" d !)l !)l!)l en "'en ~ ~ ""~ ~ ~~ ~ @ ~~ 0 8 ." m ~ ;3 u,w a- g: Q~ ;>- 00,"" n ;>- >> ~ n nn rn r;;r;; ~r l-t 1+ ~ ~U' ~ ......., ...... ............... ...........~...... ......... ................... .......~........ .,'.... Sekv. ....-., ....., 'ICer)}:.. '....... ................. "'V~ ................ ........... ........ '. '..... 1tlty -!,j" Ceo .1/? s" 1'k/i'", '<;1' " .... .... ......... '~<' , \ \, \ \ \, \ \ \ ''''''.... \ ~'-..~ ""'.... " ....,...... ) I .I / I I I ...- ~ " '" 2 o ~ ~ ti '" ? ~ ? -p ,~ i. :~ -, (:; :>;: " c '" r- "L ~ .... ;;j Gl a- ~ i ~~ '-JtII+ an' Ilr , BigLake Jim Thares, Community Development Director Big Lake, Minnesota Presentation for EDAM Meeting November 15, 2001 1. Sackaround of Industrial Park East A. City and Township leaders both felt there was a need for an Ind. Park (not much happening locally without public effort) )- City wanted cooperation on annexations and extending city limits. )- Township wanted to control its own destiny (not be added to the City) or some suitable trade-off (i. e. I city tax base throwing off tax revenue to Township). )- 80th wanted more local jobs for area residents (80% of the residents drive to work in other communities). 8. City and Township create a Jointly owned Park )- 50 - 50 Venture. ' . )- Share the development and operating costs equally, forever. )- Share the benefits (taxes) equally, forever. )- Agreements put in place stating these points. )- Expanded/Modified EDA to add Township Members. .. 2. Phased Development of the Industrial Park A. If you build it they will come approach; no solid prospects in hand. B. City and Twp. bought the land on a contract for deed. C. Financing - TIF District created for entire Park. D. Phase I - Bonds sold; roads, sewer and water developed for 3 lots (13 acres). E. Phase II roads sewer and water for remainder of the park. 3. Marketina of the Industrial Park A. Used consultants and staff for early period. B. Heavy networking with developers and firms (Le. Landcor). C. Tout the benefits of owning property and equity from land for $1. D. Tout the cooperative partnership approach - share the vision. E. Package incentives, land for $1, site prep assistance, E.D. RLF. 4. Adjustments to the Park Develooment Process A. Luke warm response led to new TIF District Configuration. B. 429 Assessments added to pay for all improvements in Phase II. C. Third TIF District in 2002 or 2003? 5. Results of the effort A. Six projects broke ground in the past 12 months. 8. Two more projects ready to break ground (imminent). C. 105 new FTE jobs in Big Lake Ind. Park East. D. Added $8,084,570 in industrial tax base; 135 % increase versus 2000. E. Added 235,300 sq. ft. of industrial space to the community. 6. Talk of expanding the Industrial Park A. City and Twp. have begun discussions to add 25 to 30 acres to I.P. B. Same type of agreements will be used except, "forever" will be stricken from all agreements and a defined number of years will be inserted (20 or 25 years or longer with less sharing of revenue??). 2 BIG LAKE INDUSTRIAL PARK EAST November 15, 2001 The Big lake Industrial Park East is unique in that it is jointly owned and developed by 8ig lake City and 8ig lake Township. It is believed that this is the first such cooperative venture and may be the only joint Township and City Industrial Development Project in the State of Minnesota at this time. FACTS ~ Size: 72 acres, less 4 acres +/- of roadway for U.S. Hwy 10 :> Developable Land: 50.20 acres :> Cost to Develop: Approximately $800,000 :> Number of lots: 13 :> Expected Number of Jobs in Park at full development: 300 FTE (Full- Time-Equivalents) >- Expected Private Sector Investment at full development: $11 to $13 million 3 GOALS ESTABLISHED AT THE ONSET OF THE PARK 4 HISTORY OF PARK DEVELOPMENT AND BUILD OUT )> 1996: );;> 1999: );;> Early 10/2000: )> Late 10/2000: )> Early 12/2000: )> Early 06/2001: )> Late 09/2001: )> Late 1 0/2001 : )> Projected 12/2001: Land Purchased by Big Lake City and Big Lake Township. Infrastructure Phase 1 (roads, sewer and water): installed in 1999 (serviced about 3 lots or 15 acres). Ground Breaking for Project #1: Landcor Project Big Lake Commerce Center I; 48,000 sq. ft. multi- tenant office-warehouse building featuring 10 bays for rent. Installed Infrastructure Phase 2 (roads, sewer, water, drainage ditches and ponds): (serviced balance of 10 lots or 35.20 acres). Ground Breaking for Project #2: A TA80Y Manufacturing, Inc. - 20,000 sq. ft. metal stamping and product assembly firm. Grand Opening of Park and Ground Breakings for Projects #3 and #4: Thompson .Woodworking, Inc. 11,280 sq. ft. residential cabinet manufacturer, and A.J. Machinery, Inc. - 16,000 sq. ft. machine tool supplier and repair firm. Ground Breaking for Project #5 - Whirl Air Flow - 48,500 sq. ft office and production facility (manufacturer of material conveyance systems). Ground Breaking for Project #6 - Injection Mold Technology - 13,500 sq. ft. office and production facility (mold manufacturing). Ground Breakings for Projects #7 & #8 - Landcor Phase 11 - 48,000 sq. ft. mulh-tenant office warehouse facility. JW Investments - 30,000 sq. ft. office & production for MM Precision Machine. 5 c rn 0) ('J :0 ." -; o z o ~ z m ::tl I I' 1\ 1\ IJ ---~ 4..011~ I .. '""=: ~l ~ I III I " "d !: := ~~/', r II ,~ \ '....... UI ~ 0 ~ rn 0) III Z m 0 0) o'b'b -< .. ,t- 0 4 0<-; ") I. j .~ - ~ I 1IOS.11' ~ !HII f;:j riS~i " ,..., l='1 j ! :z: 0 ~ ,.0- ~ ..., . I111 ii ~ :=-2---=-- .... s= ,. == it e .... ~ .... ~ - -------- OJ G) I ):- ;=\-0 m:U m ~r - O;s: C cnz ~ . -:x::= ~:o >-< I "'tj ""Or >> :0...., ;=\ m > en -; Big Lake Industrial Park East Projects Business Name I Lot Size Building Size ~~J. Machinery r 3.10 Acres 16,000 square feet AT A80Y Manufacturing I 2.20 Acres 20,000 square feet J & W Investments I 2.30 Acres 30,000 square feet LandCor Construction Phase I i 4.10 Acres 48,000 square feet LandCor Construction Phase , I I 4.00 Acres 48,000 square feet Thompson Woodworking , 2.00 Acres 11,300 square feet Whir'~Air-Flow I 5.50 Acres 48,500 square feet Injection Mold Technologies I 2.03 Acres , 13,500 square feet Totals I 25.23 Acres , 235,300 square feet Performance Measure Goals Established at the Onset of the Park Jobs per acre: (5 acres) Land to building ratio: (4:1 sq. ft.) Developed Land Assessed Value: ($250,000/acre) Open Storage: (Not allowed) Years to pay back incentives: (5 to 6) Percent of building coverage on lots: (50%) Transportation Projects?: (None) Return on investment: (approximately 17%) Current Status of Goals 4.2 jobs/acre 4.6 sq. ft. $320,435/acre None Not determined 21.40% None Not determined $;,16;000;000':' $+4,000:000. ~... $12,QOO;000. r $10,000;0.0.0. , $8;000,000 , ,$6.~oao.OQ(r . $4.0.00,0.00. $Z;qPPtooq:, >""""i' ~~':~$B" .,.::.;::..;.';_.,.:1.'.... ......:I,....t..... /".;:;;. .;111..:....... \ \- e., e ~v-\-' ,~, \'t'lYlV""'-~ LoN'N'~<-"o~:~ 1'_1>-0\0 l ~ RECOMMENDATION TO REZONE AND TO DEVELOP THE CITY (REMMELE) · PARCEL FROM COMMERCIAL TO INDUSTRIAL FORWARDING RECOMMENDA TION TO THE PLANNING COMMISSION. 1. Council adopted Ordinance No. 365 permitting annexation by ordinance for 68.73 acres of vacant land on September 10, 2001. 2. Current zoning in the Comprehensive Plan is commercial. ., :1. Rezone from Commercial to Industrial: 1. Allows for immediate development and marketing. City ownership since July 1990. ') Swap of commercial and industrial land uses. A. Bondhus/Dahlheimer from Industrial to Commercial (50+acres). B. Otter Creek Crossing from Industrial to Industrial PUD or Commercial (60 acres). 4. Development of Industrial Park. 1. Planned use of City ($265.000) and HRA ($300.000) Industrial Funds. 2. Additional development funds available from TIF District Nos. 1-5 and 1-6 Surplus Funds. No 1-5. December 2001 balance $261.000. Projected an additional TIF $330,000 NPV. TIF District No. 1-6 December 2001 balance $131,000. Projected an additional TIF less bond retirement is $245.000 NPV. Developed park allows for immediate marketing. 4. Diversifies land ownership. 5. Probusiness approach endorsed by City Official. 6. Park Development Goals modeled after Big Lake. 7. Park development is an investment for the City of Monticello. 8. Creates higher paying jobs. ., :1. 5. Market Industrial Park. 1. Modeled after Big Lake. (Land for $1) HRA Agenda - 01102102 8. Consideration to set a date for interviewinl! candidates for appointment to the HRA. A. Reference and backl!round: An ad was ran for two weeks in the shopper and Monticello Times for an HRA commissioners. 1 have had five inquiries and encouraged people to fill out an application. If applications are received a date to interview candidates should be set. Typically, the interview panel consist of the HRA Chair, Executive Director, Rick, and Council Member. I Relocation Decembe(0 200 I " S<b:-:)G '-\ \..0 . d- \ YJ::>. ~ \ ~ Q\ INVOICE Phone (952) 929-0044 Fax (952) 929-0568 Toll Free 1-877-805-1575 Conworth, Inc. 4725 Excelsior Boulevard Suite #200 Minneapolis. MN 55416 Ollie Koropchak Executive Director Monticello Housing & Redevelopment Authority Monticello City Hall 505 Walnut St., Suite 1 Monticello, l\1N 55326-8831 C\~_ 0\ ~-- Lt- \d--- NOVEMBER SERVICES - MONTICELLO PROJECT O'Connor Review file data. Talk with HRA attorney regarding payments. Talk with O'Connor regarding costs and claims. Write residential fixed move claim. Review residential relocation claim. Write business relocation claim. Review business relocation claim. TOTAL HOURS EXPENDED AT $70.00 PER HOUR 6.25 $437.50 ACQUISITION AND RELOCATION Monticello HRA 505 Walnut Avenue, Suite 1 Monticello, MN 55362 December 10, 2001 MC100-01 General Invoice # 18991 Professional Services Hours Amount 11/14/01 MTR HRA meeting 3.50 437.50 Total Due This Month: 3.50 $437.50 Status of Account: Current $437.50 30 Da s $0.00 60 Da s $0.00 90 Da s $0.00 120+ Da s $0.00 OLlIG, ? leJ.<;e ~vE.-- --t~K"S C- :) \ .~ , LI G ~~d I. ~ \ q q 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 Kennedy & Graven, Chartered 200 South Sixth Street Suite 470 Minneapolis, MN 55402 (612) 337-9300 December 12, 2001 Statement No. 49722 City of Monticello Accounts Payable 505 Walnut Street, Suite 1 Monticello, MN 55362 Through November 30,2001 MN190-00001 General MN190-00041 Redevelopment - General MN190-00089 Acquisition of 218 Front Street/O'Connor MN190-00097 TIF 1-29 Expenses Total Current Billing: I declare, under penalty of law, that this account, claim or demand is just and correct and that no f it h en paid. -' OK TO PAY? <Oc.,,6t f::: Code: ~ ~ ~Q~ Initial 77.50 27.00 297.00 40.50 106.55 548.55 City of Monticello Accounts Payable 505 Walnut Street, Suite 1 Monticello, MN 55362 MN190-00001 General Kennedy & Graven, Chartered 200 South Sixth Street Suite 470 Minneapolis, MN 55402 (612) 337-9300 41-1225694 December 12,2001 Invoice # 49722 (ct;'-^o- Through November 30, 2001 For All Legal Services As Follows: 11/14/2001 SJB Conference with Ruff, D Kennedy re levy question Total Services: For All Disbursements As Follows: 6/19/2001 7/30/2001 Postage Photocopies Parking expense Wright County Recorder - Extra Filing Fees to File Two Non-Standard Documents Total Disbursements: Hours 0.50 $ $ Amount 77.50 77.50 0.80 5.20 13.00 -20.00 -1.00 Total Services and Disbursements: $ 76.50 Page: 2 Kennedy & Graven, Chartered 200 South Sixth Street Suite 470 Minneapolis, MN 55402 City of Monticello November 30, 2001 ~ \ '?J . "L-\to C; ~ Y". '3 c ~D MN 190-00041 Redevelopment - General Through November 30,2001 For All Legal Services As Follows: 11/26/2001 DJG Telephone conference with 0 Koropchak and draft sample letter of intent Hours 0.20 Amount 27.00 Total Services: $ 27.00 Total Services and Disbursements: $ 27.00 City of Monticello November 30,2001 Page: 3 Kennedy & Graven, Chartered 200 South Sixth Street Suite 470 Minneapolis, MN 55402 ~\ 8. L\ l, Sg3, MN190-00089 Acquisition of 218 Front Street/O'Connor Through November 30,2001 For All Legal Services As Follows: 11/2/2001 RJL Review letter; phone call with Peterson 11fi/2001 RJL Phone call with district court administrator For All Disbursements As Follows: Fax Photocopies Postage Robert J. Lindall; mileage expense Robert J. Lindall; mileage expense Robert J. Lindall; mileage expense 11/8/2001 11/9/2001 11/11/2001 11/12/2001 11/13/2001 11/14/2001 11/27/2001 10/2/2001 10/5/2001 10/16/2001 10/31/2001 RJL Review file; phone call with district court administrator RJL Review letter; intraoffice conference re status RJL Phone call with district court administrator; intraoffice conference re letter and order to disburse water bills RJL Phone call with Helvey re relocation benefits; revise letter to district court and proposed order; review file RJL Revise order and letter to district court RJL Intraoffice conference re check to city; phone call with O. Koropchak RJL Dictate, revise and finalize letter to Koropchak Total Services: Lexis-Nexis - Legal Research Total Disbursements: .~ C Lf 0 Hours Amount 0.10 16.50 0.10 16.50 0.10 16.50 0.10 16.50 0.20 33.00 0.70 115.50 0.10 16.50 0.20 33.00 0.20 33.00 $ 297.00 8.50 10.60 2.84 27.20 27.20 27.20 4.01 $ 107.55 Page: 4 Kennedy & Graven, Chartered 200 South Sixth Street Suite 470 Minneapolis, MN 55402 City of Monticello November 30,2001 Total Services and Disbursements: $ 404.55 Page: 5 Kennedy & Graven, Chartered 200 South Sixth Street Suite 470 Minneapolis, MN 55402 City of Monticello November 30, 2001 MN190-00097 TIF 1-29 \Do 'i- \ o-r-J f\u~ ct\ ~ L- CL Through November 30, 2001 For All Legal Services As Follows: 11/28/2001 DJG Review draft resolutions Total Services: Hours 0.30 $ Amount 40.50 40.50 Total Services and Disbursements: $ 40.50 BRA Agenda - 1/2/02 10. Consideration of Executive Director's re~ort. a) Front Street - Upon receiving an invoice from Schluender Construction for demolition/cleanup, the attached letter was mailed relative to unsatisfactory completion of work per the RFP. The Building ()flicial completed an inspection on December 12, 200 I, and will make a final inspection this week. At this point, no certiticate of insurance has been submitted by the contractor. On December 13, City Planner Consultant Steve Grittman, Engineer Bret Weiss, Jeff O'Neill, and myself met with trans Hagen. Hagen presented three floor plan concepts: First, a zero-lot line single family home of which he was not pleased with the internal flow and minimum natural light and air circulation of the unit. Second concept, 10 row homes. This allows for wider units which provides flow, and maximizes use of natural light and air circulation. Third concept, 7 single family homes. Based on the higher density identified within the Comprehensive Plan and projected tax increment from 10 units, the group elected to go with the row house concept. From a standpoint of engineering, the southerly boundary with be sloped, alley curbing five ft from property line and drain to storm sewcr in southwesterly corner. Home construction to commence June I or July I, transfer title April I S, finished pad site spring. Total market value of 10 hOlnes at least $1,900.000. Attorney Greensweig was present to begin drafting the Redevelopment Contract. December 20 and 21 is the date for the hearings on the O'Connor property. Update at the meeting. b) Cyr/Vine and Minnesota Street - Cyr has not given the OK to move forward on his proposed 26 unit townhouse project. Perhaps February meeting. c) Attached is a copy of the second half 200 I tax increment collected by the liRA and a copy ofthe preliminary 2002 local tax rates. d) Couple lookers on the Right Choice and Fay-Mar buildings. e) Brochures have arrived. Inserts to be printed by mid January. 1) Please note my new e-rnail address: ollic.koropchakf(iki.rnonticello.mn.us g) Scatter Housing ~ Sheri Harris advised to delay authorizing establishment of a Housing TIP District til February. She has an agreed offer on one property and has mailed offers to the remaining three with anticipation of hearing by end ofJanuary. On December 19, staf( city planner, contractor, and Sheri will discuss design concepts and curb appeal. h) East 7 Street Industrial ~ Steve Heimbuch, l-Ieimbuch Commercial, met with city stafT to discuss develop of this property which lies to the east of Burger King. It is their intent to start construction of the rental or ownership business park in the spring. i) Stopped by IRTI on December 18. Steve Budd moved in. Very busy. Will visit as a group after the new year. j) Wiha Tool and EDMA buildings coming along. SCHLUENOER CONSTRUCTION, INC. 3331 90TH STREET N.E. MONTICELLO, MN 55362 PH (763) 295.5784. FAX (763) 295-5544 BILL TO: CITY OF MONTICELLO ATTN: ACCOUNTS PAYABLE 505 WALNUT STREET, SUITE 1 MONTICELLO, MN 55362 QUANTITY I ... Invoice DATE INVOICE # ~ 11/30/2001 7211 P.o. NUMBER Demolition as per bid 8 Locust Street 500.00 220 FrontStreet 500.00 218 FrontSlreet.4,500.00 3 Walnut Street 300.00 Sewer & Water Repair- Disconnect Extra time - was u ind curb stop OKTO PAY? ;$ s SO, . q (\ 'J, \. '?:J ~ 4 \.n S s: 3 , Lt?, '"1 - )/14 Work Ordered by - " lank You for Your Business. 1~1n~'J fl:.J,aH\ Code: Initial TERMS . - . NET 30 DAYS RATE AMOUNT 5,800,00 5,800.00 550.00 ""'\ 550.00 ~ ;1-0 0. J vita~ o (l ~\ e-.- TOTAL $6,350.00 December 7,2001 MONTICELLO Mr. Gary Schluender Schluender Constmction. Inc. 3331 90~h Street NE Monticello, j\;fN 55362 Re: Demolition/Cleanup Agreement Dear Mr. Schluender: On November 13.2001. Schluender Construction. Inc. and other contractors submitted a bid for demolition and cleanup of8 Locust Street 220 Front Street, 218 Front Street. and 3 Walnut Street as specified \-vithin the request for proposal. The bid was awarded to Schluender Construction. Inc. by the Monticello Housing and Redevelopment Authority (HRA) on November 14.2001. On December 5, 2001, the HR.--\. received an invoice from Schluender Construction. Inc. for the accepted bid amount of $5,800 and a water/sewer discount amount of $550. Prior to the HR..--\. authorizing payment of the $5,800. please satisfy completion of the following specifications: 1. Indemnitv and Insurance. The contractor shall carry not less than $1.000,000 of commercial general liability insurance (CGL) and not less than $1.000,000 in automobile insurance naming the HR.A. and City as an additional insured and agrees .......... Certiticates of insurance shall be provided prior to the start of work. Please provide certificates. 'I Notice to Citv. The contractor shall notify the HRA Executive Director. two days prior to the commencement of the demolition/cleanup work. No notification \Vas received. 3. fnsDections and Final Grade/Fillinl!. The contractor must call for an inspection by the Building Official prior to Qnv back-till of excavQtions. Failure to do so \-viII result in re-excavation at no additional compensation. Copies of City of Monticello City Hall, 505 Walnut Street, Suite 1, Monticello, MN 55362-8831 . (763) 295-2711 . Fax: (763) 295-4404 f"\ffif"'~ ,,#-- P.llhl;,... \lln..(,t" ana ~..."lf rl"\t.u....I('lQ 0.4 \...f..........~....~I1^ 1t.,fJ\.f "C:'1J::..., .. 1'i~'1\ 10, "'}1...," ~ r."_ n_ I"#'f~,.,,\ ..,...,.. """'.....""'TI"'\ Mr. Schluender Page 2 December 7, 2001 Monticello Inspection Notices for 218 Front Street and 3 Walnut Street are of record; however, there is no record of a Inspection Notice for 8 Locust Street Please provide Inspection Notice for 8 Locust Street. Upon providing the HRA with the Certificates of Insurance and Inspection Notice for 8 Locust Street, the HRA will authorize payment of the invoice. Should you have any questions, please call me at 763-271-3208. Thank you for your attention to this matter. Sincerely, HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO, MINNESOTA CS~ \<d)"~~ Ollie Koropchak Executive Director c Rick W olfsteller, Administrator Monticello Building Department HRA File CITY OF MONTICELLO INSPECTION NOTICE DATE TIME PERMIT #: tJ 1- t&1!~ 8 ide <<.<'1 S"$:-6f Called in Scheduled Com leted , ~ \ 'S"'-\ \( '.rY'--/ \ J. ~ \)' ~ \ G cu. '-'"X \~. ''\ ~J\ 0 ~ tl.A ~ s; ADDRESS: OWNER: PHONE #: CONTR: III} o House Footings o Garage Footings o Floor - Basement o Floor - 3rd Level o Other o Foundation - Formed o Foundation - Backfill o Framing o Insulation D Sheetrock o Plumbing Rough-in 0' Plumbing Final o Mechanical Rough-in o Mechanical Final o Building Final COMMENTS: . ~ .. 6'f'CIf~ 1!!!1~ /IllPtiJJ ~~~j07 ~6a~ ~(ll..{e~1 ~t ~~. ~~ ~~t=i~7!!E:tJ~E~~r:ff1-;~ INSPECTION RESULTS: REASONS: InspeClor~~~~ I) Approved--Proceed 0 Work Not Ready rJ Unable to Inspect 0 No Permit Issued o Stop Work 0 Corrections Not Done o Correct Work--Proceed 0 Do Not Occupy ~ Correct Work--Call 0 Unable to Access /.. for Inspection Call 295-3060 for the next inspection 24 hours in advance. 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