HRA Agenda 01-17-2005
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AGENDA FOR SPECIAL MEETING
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Monday, January 17,2005 -7:00 p.m.
505 Walnut Street - Bridge Room
Commissioners:
Chair Bill Fair, Vice Chair Darrin Lahr, Dan Frie, Brad Barger, and Steve
Andrews.
Council Liaison:
Wayne Mayer
StatJ:
1.
2.
3.
4.
5.
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6.
Rick Wolfsteller, Ollie Koropchak, and Angela Schumann.
Call to Order.
Consideration to approve the January 5, 2005 HRA minutes.
Consideration of adding or removing items from the agenda.
Consent Agenda.
Consideration to approve authorization to enter into a Preliminary Development Agreement
between the lIRA and William R. and Barbara R. Tapper.
Consideration of calling for a public hearing date for proposed business subsidy to William R.
and Barbara R. Tapper and Strategic Equipment and Supply Corporation.
7. Consideration to approve a resolution requesting the City Council of the City of Monticello call
for a public hearing on a modification to the Redevelopment Plan for Central Monticello
Redevelopment Project No. 1 and the establishment of a TIF Plan for Ill" District No. 1-33
(an Economic Development District) therein and the adoption of a TIF Plan therefor.
8. Committee Reports.
a) Marketing Committee - Need to meet.
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9. Other Business.
a) Next HRA meeting February 2,2005.
10. Adjournment.
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HRA Agenda - 01/17/05
5.
Consideration to approve authorization to enter into a Preliminary Development
Agreement between the BRA and William R. and Barbara R. Tapper.
A. Reference and backl!round:
William and Barb Tapper purchased the property located at 1324 Edmondson Avenue NE last
f~l11 (previous H- Window building.) Tapper purchased the building for Westlund Distributing, a
distributor of cabinetry hardware, and moved Westlund from the Genereux Fine Wood
Products' building along Chelsea Road to the Edmondson building. The intent was to lease out
the remaining portion of the Edmondson building. In order to accommodate the needs of a
proposed tenant, 30,000 sq ft warehouse and 5,000 sq ft office space, comes the need to
expand the existing 60,000 sq ft H- Window building. Tapper plans to utilize 42,000 sq ft of
the warehouse space and 3,000 sq ft of office for Westlund and to lease out the existing 10,000
sq ft warehouse and 5,000 sq ft office to the proposed tenant plus construct an additional
25,000 sq ft of warehouse spaee.
Therefore, Tapper is requesting IIF assistance associated with the construction of the
proposed 25,000 sq ft expansion in order to obtain lease rates of industry standards and
acceptahle to the proposed tenant.
The proposed tenant is Strategic Equipment and Supply Corporation, Dave Miller, President
Northern Region, Minneapolis. The food service equipment company was formed in 2000 and
last year had revenues of $243 million. The company purchased several smaller companies a
few years ago and currently has facilities in St. Cloud and Minneapolis. The company is
looking lor a regional service and finance center. Plans are to retain the sales facilities in St.
Cloud and Minneapolis. The company plans to bring about 50-55 jobs to Monticello over the
next two years hut for the sake of the Business Subsidy Law will commit to 40 full-time jobs.
Attached is a list of job and wage levels. Using the minimum wage levels reported, the average
per hour wage wlo benefits is $17.90 and the median per hour wage w/o benelits is $19.00.
The tenant needs occupancy by no later than mid-June.
Attorney Bubul, Tapper, Miller, and Koropchak met to discuss ifthe project met MN
Statutory Requirements and how best to structure a devclopment contract. Mr. Tapper has
exeeuted a Preliminary Development Agrcement for the HRA to consider and submitted a
deposit 01'$7,500.
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HRA Agenda - 01/17/05
H.
Alternative Action:
1.
A motion to approve authorization to enter into a Preliminary Development Agreement
between the HRA and William R. and Barbara R. Tapper.
2.
A motion to deny authorization to enter into a Preliminary Development Agreement
between the HRA and William R. and Barbara R. Tapper.
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A motion to table any action.
c.
Recommendation:
The City Administrator and Economic Development Director recommend Alternative No.1. as
the project concept appears to meet the requirements of a TIF Law.
D. Supportinl! Data:
Copy of thc Agreement and deposit.
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HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO, MINNESOTA
PRELIMINARYDEVELOPMENT AGREEMENT
THIS AGREEMENT, dated this ~ day of -;;:;- , 20t?~ by and between the
Housing and Redevelopment Authority in and for the City of Monticello, Mirmesota, a public ~dy J1
corporate and politic under the laws of Minnesota ("Authority") and /,1.J;"./-It'J?ft'.)J, f )J/1rCltr011\,
("Developer"): '7ii~7L
WITNESSETH:
WHEREAS, the Authority desires to promote development of cel1ain property within the
City of Monticello, which property is legally described in Exhibit A attached hereto ("Property");
and
WHEREAS, the Developer has submitted a preliminary proposal (the "Proposal") for
development of the Property (the "Development"), which proposal is attached hereto as Exhibit B;
and
WHEREAS, the Developer has requested the Authority to explore the use of certain public
assistance to assist with the Development: and
WHEREAS, the Authority has determined that it is in the Authority's best interest that the
Developer be designated sole developer of the Property during the term of this Agreement; and
WHEREAS, the Authority and the Developer are willing and desirous to undertake the
Development if (i) a satisfactory agreement can be reached regarding the Authority's commitment
for public costs necessary for the Development; (ii) satisfactory mortgage and equity financing. or
adequate cash resources for thc Development can be secured by the Developer; and (iii) the
economic feasibility and soundness of the Development and other necessary preconditions have
been determined to the satisfaction of the parties; and
WHEREAS. the Authority is willing to evaluatc the Development and work toward all
nccessary agreements with the Developer if the Dcveloper agrecs to rcimburse thc Authority for its
costs if the Development is abandoned or necessary agreements are not reached undcr the terms of
this Agreement.
NOW, THEREFORE. in consideration of the foregoing and of the mutual covenants and
obligations set forth herein. the parties agree as follows:
I. Negotiations between the particsshall proceed in an attempt to formulate a definitive
development contract ("Contract") based on the following:
(a) the Developer's ProposaL which shows the scope of the proposed
Development in its latest form as of the date of this Agreement, together with any changes
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or modifications required by the Authority:
(b) a mutually satisfactory Contract to be negotiated and agreed upon 111
accordance with negotiations contemplated by this Agreement;
(c) such documentation regarding economic feasibility of the Project as the
Authority may wish to undertakc during the term of this Agreement; and
(d) other terms and conditions of this Agreement.
') It is the intention of the parties that this Agreement: (a) documents the present
understanding and commitments of the parties; and (b) will lead to negotiation and execution of a
mutually satisfactory Contract for the Development prior to the termination date of this Agreement.
The Contract (together with any other agreements entered into between the parties hereto
contemporaneously therewith) when executed, will supersede all obligations of the parties
hereunder.
3. During the term of this Agreement, the Developer shall:
(a) Submit to the Authority a design proposal to be approved by the Authority
showing the location, size, and nature of the proposed Development, including floor layouts,
renderings, elevations, and other graphic or written explanations of the Development. The
design proposal shall be accompanied by a proposed schedule for the starting' and
completion of all phases of Development.
(b) Submit an over-all cost estimate for the design and construction of the
Development.
(c) Submit a time schedule for all phases of the Development.
(d) Undertake and obtain sueh other preliminary economic feasibility studies,
income and expense projections, and such other eeonomic information as the Developer
may desire to fUliher confirm the economic feasibility and soundness of the Development.
(e) Submit to the Authority the Developer's financing plan showing that the
proposed Development is financially feasible.
(1) Furnish satisfactory. financial data to the Authority evidencing the
Developer's ability to undertake the Development.
4. During the term of this Agreement, the Authority agrees to:
(a) Commence the process necessary to undertake SLlch public assistance as is
necessary pursuant to the terms of the Proposal.
(b) Proceed to seek all necessary information with regard to the anticipated
public costs associated with the Development.
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(c) Estimate the Authority's level and method of financial participation, if any,
in the Development and develop a financial plan for the Authority's participation.
5.
subject to:
It is expressly understood that execution and implementation of the Contract shall be
(a) A determination by the Authority in its sole discretion that its undertakings
are feasible based on (i) the projected tax increment revenues and any other revenues
designated by the Authority; (ii) the purposes and objectives of any tax increment,
development, or other plan created or proposed for the purpose of providing financial
assistance for the Development; and (iii) the best interests of the Authority,
(b) A determination by the Developer that the Development is feasible and in
the best interests of the Developer.
6. This Agreement is effective from the date hereofthrough-t:. ./?t1, 200 -5 ~ . After
such date, neither party shall have any obligation hereunder except a's~IY set forth to the
contrary herein.
7, the Developer shall be solely responsible for all costs incurred by the Dcveloper, In
addition, the Developer shall reimburse the Authority for Administrative Costs, as hereafter defined.
For thc purposes of this Agreement, the term "Administrative Costs" means out of pocket costs
incurred by the Authority together with staff costs of the Authority. all attributable to or incurred in
connection with the negotiation and preparation of this Agreement. the Contract, and other
documents and agreements in connection with the Development.
In order to secure payment of the Administrative Costs, the Developer shall dcliver to the
Authority cash or a certified check in the amount 0[$ 7.500 such delivcry to occur upon execution
of this Agreement. If at anyone or more times during the term of this Agreement, the Authority
determines that Administrative Costs will exceed $7. 500and that additional security is required, the
Authority shall notify the Developer of the amount of such additional security. Within ten calendar
days of receipt of this notice, the Developer shall deliver to the Authority the required additional
security. The Authority will utilize the funds delivered by the Developer to payor reimburse itself
for Administrative Costs, Upon termination of this Agreement, the Authority will return to the
Developer the funds paid by the Developer to the Authority pursuant to this Section 7, less an
amount equal to the Administrative Costs.
This Section 7 shall survive termination of this Agreement and shall be binding" on the
Developer regardless ofthc enforceabil ity of any other provision of this Agreement.
8, "l"his Agreement may be terminated upon 5 days written notice by the Authority to
the Developer if:
(a) an essential precondition to the execution of a contract cannot be met; or
(b)
if, in the respective sole discretion of the Authority or the Developer, an
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impasse has been reached in the negotiation or implementation of any material term or
condition of this Agreement or the Contract; or
(c) The Authority determines that its costs in performing under this Agreement
will exceed $7, sooand the Developer does not deliver additional security to the Authority
pursuant to Section 7 of this Agreement.
I f the Authority terminates the Agreement under this Section 8, the Developer shall remain
liable to the Authority under Sections 6 and 7 of this Agreement for costs incurred by the Authority
through the date oftcrmination.
9. the Developer is designated as sole developer of the Property during the term of this
Agreement.
10. In the event that the Deve]oper, its heirs, successors or assigns, fail to comply with
any of the provisions of this Agreement, the Authority may proceed to enforce this Agreement by
appropriate legal or equitable proceedings, or other similar proceedings, and the Developer, its
heirs, successors or assigns, agree to pay all costs of such enforcement, including reasonable
attorneys' fees.
II. If any portion ofthis Agreement is held invalid by a court of competent jurisdiction,
such decision shall not affect the validity of any remaining portion ofthe Agreement.
12. In the event any covenant contained in this Agreement should be breached by one
party and subsequently waived by another party, such waiver shall be limited to the particular
breach so waived ancl shall not be deemecl to waive any other concurrent, previous or subsequent
breach.
13. Notice or demand or other communication between or among the parties shall be
sufficiently given if sent by mail, postage prepaid, return receipt requested or delivered personally:
(a)
As to the Authority:
Housing and Redevelopment Authority
in and for the City of Monticello
505 Walnut Street, Suite I
Monticello, MN 55362-8822
Attn: Executive Director
tJ /:-1- tn~ 'Y1 ~ .J- iZJ I' {J /7;; IJ- j( 7/iiP L-rrL
3?g~- iJA'-Pff71 /;rnJ .
!ip:~~~~/l
(b)
As to the Developer:
14. This Agreement may be executed simultaneously in any number of counterparts. all
of whieh shall constitute one and the same instrument.
15.
This Agrcement shall be governed by and construed in accordance with the laws of
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the state of Minnesota. Any disputes. controversies. or claims arising out of this Agreement shall be
heard in the state or federal courts of Minnesota, and all parties to this Agrcement waive any
objection to the jurisdiction of these courts, whethcr bascd on convenience or otherwise.
16. The Developer hereby agrees to protect defend and hold the Authority and its
oflicers, elected and appointed oHicials, cmployees, administrators, commissioners, agents, and
representatives harmless from and indemnified against any and all loss, cost fines, charges,
damage and expcnses. including, without limitation, reasonable attorneys fees, consultant and
expert witness fees, and travel associated therewith, due to claims or demands of any kind
whatsoever arising out of (i) the development, marketing, sale or leasing of all or any part of the
PrOpet1y, including, without limitation, any claims for any licn imposed by law for scrvices,
labor or materials furnished to or for the benefit of the Property, or (ii) any claim by the state of
Minnesota or the Minnesota Pollution Control Agency or any other person pertaining to the
violation of any permits, orders, decrees or demands made by said persons or with regard to the
prescnce of any pollutant, contaminant or hazardous wastc on the Property; and (iii) or by reason
of the execution of this Agreement or thc performance of this Agreement. The Developer, and
the Developer's succcssors or assigns, agree to protect, defend and save the Authority, and its
oflicers, agents, and employees, harmless from all such claims, demands, damages, and causes of
action and the costs, disbursements, and expenses of defending the samc, including but not
limitcd to, attorneys fees, consulting enginecring services, and other technical, administrative or
professional assistancc. This indemnity shall be continuing and shall survive the performance,
termination or cancellation of this Agreement. Nothing in this Agreement shall be construed as a
limitation of or waiver by the Authoriti of any immunities, defenses, or other limitations on
liability to which the Authority is entitled by law, including but not limited to the maximum
monetary limits on liability established by Minnesota Statutes, Chapter 466.
17. The Developer, for itself, its attorneys, agents, employees, former employees,
insurers, heirs, administrators, representatives, successors, and assigns. hcreby releases and forever
discharges the Authority, and its attorneys, agents, representatives, employces, former employees,
insurers, heirs, executors and assigns of and fi:om any and all past, prcsent or future claims,
demands, obligations, actions or causes of action, at law ot in equity, whether arising by statute,
common law or otherwise, and for all elaims for damages, of whatever kind or nature, and for all
claims for attorncys' fees, and costs and expenses, including but not limited to all claims of any kind
arising out of the negotiation, execution, or performance of this Agreement between the parties.
[REMAINDEROF PAGE INTENTIONALL YLEFT BLANK]
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IN WITNESS WI-rEREOF, the Authority has caused this Agreement to be duly executed in
its name and behalf and its seal to be duly affixed hereto and the Developer has caused this
Agreement to be duly executed as of the day and year first above written.
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DEVELOPER
By
Its:
i!q/j~~tryC-
By
Its:
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D.ICi-200XX7v I
MNllJO-1
HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE
CITY OF MONTICELLO, MINNESOTA
By
Its Chair
By
Its Executive Director
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EXHIBIT H
Project Proposal
CONSTRUCTION OF A 25,000 SQUARE FOOT WAREHOUSING ADDITION TO AN EXISTING
60,000 SQUARE FOOT MANUFACTURING/OFFICE FACILITY LOCATED AT 1324 EDMONDSON
AVENUE NORTHEAST, MONTICELLO, MN.
THE NEW ADDITION PLUS 10,000 SQUARE FEET OF EXISTING WAREHOUSE SPACE AND 5,000
SQUARE FEET OF OFFICE SPACE WILL BE LEASED TO STRAGIC EQUIPMENT AND SUPPLY
CORPORATION WHO WILL EMPLOY 40 FULL TIME PEOPLE.
THE ESTIMATED MARKET VALUE OF THE NEW ADDITION IS $750,000.
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EXHIBIT A
Description of PropcI1y
LOT 12, BLOCK 002, OAKWOOD INDUSTRIAL PARK, CITY OF MONTICELLO
PID# 155-018- 002120
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JAN-07-2005
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Number ofJobs
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.,C~mpany 'Name
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DEVELOPMENT SERVICES
Economic Development Director
Phon.::
Fax:
EmaiJ:
(763) 27 J ...3208
(763) 295-4404. ,
011 i c. knror'l Chaklll:C i. JTI(\n!iccl J o. mn. us,
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CITY OF MONTICELLO.l\IUNNESOTA
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JOB AND WAGE LEVEL - EXISTING JOBS
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Please indicate number of current employees at each level and indicate the corresponding benefit j~vel., ' .:~
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Hourly Wa!!e
Level
Hourly Value
of Vol un tar v
Benefits (S)
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Part..time
(Exc/. benefits)
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Less than $7.00
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$7.00 to $7.99
$8.00 to $9.99
$10.00 to $1 1.99
$12.00 to $13.99
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$J4.00 to $15.99
$16.00 to $17.99
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$22.00 and higher
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Monticello City HaU, 505 Wii!nul Slteel, Suite I, Monticdlo, MN 55362-8831. (763) 295-27110 FlU:: (763) 295-4404
Offi~ of Public Works. 909 GolfCoUrIle Rd" Monticello, MN 55362. (763) 295-'117(). J:1.~. ,.,"'..' ~_. ___~
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TOTAL P.02
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WILLIAM R. TAPPER
BARBARA R. TAPPER
Lie. T-160-887-730-298 T-160-081-751-569
3935 WA~D. LANE PH, 612-473.7919
'A TA, MN 55391
PAYTOTHE. .
ORDER OF . "r;L.t-
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Bank NA. IToWJ.l;JMN
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1/11/2005
F
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. EHLERS
William R. and Barbara R. Tapper
CITY OF MONTICELLO - Strategic Equipment & Supply Corporation
25,000 sqlft Addition to Existing Industrial Building" TIF District #33
1--
Di!iitrict TYPQ
DistrIct Number
Inflation Rate. EV€HY Year
P;]y~As-You-Go Interest Rate
Not!'! 1!'>5ued Date (Present Vallie Date)
Loc;]1 Tax RatE;! - Maximum
Fiscal bisparitias Election (A-inside or B-ouISid~)
Year Djwict Wi35 cenificd
Assumes ~irst Tax IncrernEml For ~istrict
Yi:!ar Oistrict was modified
Development localed in modified arBa
Assumcf:; f=irst Tax Incremonl lor Projet:'f
Years of T;;Ix Incremont
Assumes Las! Yeat of 1'r.1)( Increment
r.I.F. CASH FLOW ASSUMPTtONS
New Eco~'~~i~' Oevelopment Di~'t;i~t
33
0.0000%
.7~
Fiscal Oi~parities Ratio
Fiscal Dispatities Metro Wide Tax RCllp.
Local Tax Rate - Curn:!nl
State Wido Ptoperty Tax Rate (used fOr totallaxes)
Matket V('Ilue Tax Rate (usec:l fQr total taxes)
CommBtciallndustrial Class Rate
Fitst 150,000
Over 150,000
Rental Class Rat€!
Re!';idental Class ~BtP.
Fitst 500,000
Over ,..~,~.OO,OOO
r-
"~~SEVALUEINFOR~~ TiON
Property Land auildlng
PID Owner Market Valu~.,. M~rkel Value
.,.., ~5-018.-g.0212'6 - I r,o'o H ~i:'d~_~~~~an~ 1 ~.~,,600 .. 1,694.700
5,5000%
01-Aug-05
121.9960% Pay 200t> Propo!'ied
N/A
P'Y 2005
2007
N/A
No
2007
9
2015
0.0000%
0.0000%
121.9960% ~ay 20(lS Proposed
54.1090% Pay 2004
O.0527B/1Il Pay L004
1,50%-2.00%
1,50%
200%
1.25%
1.00%-1,25%
1 ,OO~/"
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Total Class
Market Value A.ate
.~, 1,8t1.900 ,1.50%~2~OO%1
.1,871,900.__.._ .
Base
Tax Capacity
~~88
36,688
Class Rate After
After Conversion
Conversion T a..: CapaC:.i,ty
1..s(iai,,-2.UO'~> 36,688.
, 36.688
PROJECT'iNFORMATION
".Taxes Per ., ""Total MarkGt"-
Sq, Ft.fUnlts T~xes Value
$,j~i6'. 92.408 "~-2,621,90a
...., 92,406 "i;621,9oo
......~~- Mark!;!t Value
.~~.lnd~~-~,q~~,~~Uonits ~q..'3~t~~nits
'TofAi:----... " ----,--
Note:
1, Tax el!itimiiltes ar~ b,JSed on fllmkM value.
2. nF run assumes 10D~Ii, of UlQ buifdilig i!;l. construcled by J,fInU;J.ry 2. 2001) tor p:ily.a~11i! 2007.
L-
Industrial
__!'=!TAL'
Cla!;l.!j
._.~~t8
1.50%.?).Qo/?
p'roject
'tax Cap'liIclty
b1.688
51,688
use
Total
To.
q~pacity
51.688
S1,6~8
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Tox
Rate
1.21996
"1.21996
TAX CALCULATIONS
F'lscal State-wide
Disparities ProPl;lrty
Tax Rate Tax Rate
0.00000 0.5410'
0.600000.54109'
local
Taxes
63,057
63,057
Fiscal
Di~parltles
Taxes
-------.-.
Local Fiscal
Tax Disparitil;t!ii
ClIPacity Tax CapliIcity
51,688-'-0 .. --
.~~~~ 0
Not~:
1. Monllc",lto L'ICE!S not l,)~IY Fisc;)1 [}i~p~lrW(JS.
f'fep8r~d by f.l1lnr'i'
o
"0
y e~r Date
Con,struCfed Pl;lya~19
. 2065 2007 ...
State-wide Market
Property Value
l~xe5 Taxes
27.968 1,]"
27,968.",.__~
Page 1 of:l
D~te
Payable
L005
Total
Taxi:ls
92,406
Ii,406
TIF Cashflow 1-10-0~
1/11/2005
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~---'---------' B~se- Project
PERIOO aEGINNING Tax Tax
Yrs. Mth. Yr. Capacity Capacity
O,'O-O-2-D1 2005 36.688 36.688
Do 08-01 200~ 36.688 36.688
00 02-01 2006 36.688 36.6"8
0.0 08-01 2006 36.688 36.688
0_0 02.01 2007 36,688 51;688
0" 08-01 2007 36.688 51.688
1.0 02-01 2008 36.688 51.688
1.0 08-01 2008 36.688 51.688
2.0 02-01 2009 36.088 51,688
2.5 08-01 2009 36,688 51,688
'0 02-01 2010 36.688 51.688
3.5 08.01 2010 36.688 51,688
4.0 02-01 2011 36.688 51.688
4.5 08-01 2011 36.688 51.688
5.0 02-01 2012 30.088 51.688
b.b 08-01 2012 36.688 51.688
6.0 02-01 2013 36,688 51.688
6.5 08-01 201:1 36.688 51,688
1.0 02-01 2014 36.688 51.688
I.b OU-01 2014 36.688 51,688
8.0 02-01 201b 3M88 51,688
8.0 08-U1 2015 ~___ ~~,~88_.. 51,688
Tot.l;lls
P~~!j;ellt Value Date . 8~01 ~O5
. EHLERS
CITY OF MONTICELLO - STRATEGIC EQUIPMENT & SUPPLY CORPORATION
Fiscal
Disparities
Reduct./on
TAX INCREMENT CASH FLOW
Captured Semi-Annual State
T ax Gross T ax Auditor
_._,._.f~p,a.~,i!y._ Increment 0.36%
Page 2 of 2
Admin. Semi-Annual S';/~:;~I~'~lr ~~~~~N:~~~~~
at Net Tax
5.00% Increment Valve Yrs. Mth. Yr.
0.0 08-01 2005
0 0 0.0 02.01 2006
0 0 0.0 08-01 2006
0 0 0.0 02.01 2007
8.661 7.770 0.5 08-01 2007
8,661 15.333 I 1.0 02-01 200'
8.661 22.693 Uj 08.01 2008
8.661 29,85:5 20 02-01 2009
8.661 36,821 2,:' OB-()1 2009
S,661 43.611 3.0 O~-O1 2010
8.661 50.214 3.5 08.01 2010
8,661 56.641 4.0 02-01 2011
8.661 62.89" 4.5 08-01 2011
8.661 68,962 50 02-01 2012
8.661 74,906 5.:; 08-01 2012
8.661 60,672 6.0 02-01 ,013
",661 86,283 6.5 OB-01 2u13
8.661 91,"144 1.0 02-D1 7,014
8.661 97,059 1.' OH-()1 2014
8.661 102,231 8.u 02-01 2015
8.661 107,.26tJ 8.5 08-01 1015
8~~~~._"._,. "_.~1.2 Hi5 9.0 02-01._... ,?o~q
. ..~,~~...1897
112.165
Note-:
1. Stflt~ Al.lcHt.or pa.vnwnt \:=,. b,Jti.B-(;! on 'U;! h.:lff. P,lY 2004 i!l.:tuaJ and may increase Dver term of district.
2. A!j;s~Jm~!j\ dO'\lok;pm~n( h; COIH.tr'uctt!d ill 200~). .assessed Iii 2"006 ;~nd first if':cr~melit is paid ir~ 2007.
:3. Amount Df increm-f!m will '1,HY d~>p-en(..llt'lg I.IW)F\ t'nMket V,IIUe. t~x r>.lt,;;.s. d.a~~~~ r'I.HI)<;. eot')!!itnH;tio(1 $C"h()~h..dc- :al~d ~nn<Hiofi <m i\"1MKet v,lh,l~.
1/.. lnllalioll 01'1 tnx rate!;; cann(7lt be c.:(lpture~i ^ TAX r~Alf.S COUl.D DECLINE
5. flF dOE'l> rlt'lt ci.lplure statl~ wi(h~ propwty f;IXljJS f.H !n<),-kIH "alu~~ property t'~lXIJ'S.
0, IF INI:,LATlONAkY TlF: IS rU.:CEIVED IN 1.00(;, THE; flNAl... INCH~M[NT WH.!., BF 1.!1;1"j
.
1I0w ''-!IX Incrcmcnl i~ Calcullllcl
Total Property Taxc~
h'~~ Sl~h' T;,~
''IL'?t:l:' :\Iarkct Value T:u:
h'lI~ E:\:isCin:-: TlIxc~
AnnUlllllH Incrcn1l'nt Financinc
.
o Present ValliS Date - 8"01-05
o 0 0
o 0 0
o 15,000 9,150
o 15,000 9.150
o 10.000 9.150
o 10.000 9.150
o 15.000 9.150
o 15.000 9.150
D 15,000 9,150
o Pi,OOO ~,150
o 10.000 9.150
o 15.000 9.150
o 15.000 9.150
o 15.000 9.150
o 15.000 9,150
o 15.000 9.150
o 15.000 9.150
o 15.000 9.150
o 15.000 9.150
o 15.000 9.150
16~~.~95
- .-.-.-----.-------.----.----.-:,-21.75'3.
92,411(\
-27_':168
..1.;\1:11
~ESli",xfC
IIU99 Il!~~ all.\' lldmill_ FI!I!.~
Prepared by Ehlers
Cllrrenl M::lI'ket Valu€; - cst.
New Markel Valul3 - Esl
DI(h~fe"(:e
Present Vallie or Tax Increment
Difference
Value L1kel to Occur Without Ta~ Increment is Less Than:
BLlT:I:'FORANAL VSIS
1.871.900
4,4!l:i,BOO
2.621.900
-~~
2.f,09.735
2,!i09,73~
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.
SCHEDULE OF EVENTS
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
AND THE CITY OF MONTICELLO
WRIGHT COUNTY, MINNESOTA
FOR THE PROPOSED MODIFICATION TO THE REDEVELOPMENT PLAN FOR
THE CF:NTRAL MONTICELLO REDF:VELOPMENT PROJECT NO.1
AND THE PROPOSED ESTABLISHMENT OF
TAX INCREMENT FINANCING DISTRICT NO. 1-33
(an economic development district)
Draft as of January 10,2005
January 17,2005
HRA considers entering into a Preliminary Development Agreement with
'rappers.
HRA calls for public hearing on Business Subsidy Agreement.
HRA requests that the City Council call for a public hearing on the proposed
Modification to the Redevelopment Plan for Central Monticello Redevelopment
Project No. 1 and the proposed establishment of Tax Increment Financing
District No. 1-33.
January 18, 2005
Project information (property identification numbers and legal descriptions,
detailed project description, maps, but/for statement, and list of sources and uses
of funds) far drafting necessary documentation sent to Ehlers & Associates.
January 24, 2005
City Council calls far public hearing on the proposed Modification to the
Redevelopment Plan for Central Monticello Redevelopment Project No. I and
the proposed establishment of Tax Increment Financing District No. 1-33.
January 25, 2005
Ehlers & Associates confirms with the City whether building permits have been
issued on the property to be included in TIF District No. 1-33.
January 28, 2005
Fiscal/economic implications received by School Board Clerk and County
Auditor (at least 30 days prior to public hearing). [Ehlers & Associates to fax &
Inail on January 27 or 28. 2005]
February 1, 2005
Planning Commission reviews Plans.
February 2, 2005
HRA considers the Plans.
HRA holds public hearing at 6:00 !'.M. hearing on Business Subsidy Agreement
and approves Development Agreement.
e
EHLERS
~ ~ S S (I G I A T r: ~ I N C
.
.
.
SCHEDULE OF EVENTS - PAGE 2
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
AND THE CITY OF MONTICELLO
WRIGHT COUNTY, MINNESOTA
FOR THE PROPOSED MODIFICATION TO THE REI)[~VELOPMENT PLAN FOR
THE CENTRAL MONTICELLO REDEVELOPMENT PROJECT NO.1
AND THE PROPOSED ESTABLISHMENT OF
TAX INCREMENT FINANCING DISTRICT NO. 1-33
(an economic development district)
February I ], 2005
Ehlers & Associates conducts internal review of Plans.
February 17, 2005
Date of publication of hearing notice and map (at least 10 days but not more than
30 days prior to hearing). fMonticello Times puhlication deadline, Fehruary 14.
2005 -Hhlers & Associates or City ojlvfonticcl1o to submit notice and map to
newspaper If City chooses to suhmit notice and map to the newspaper, Ehlers
& Associates will provide language for the notice to the City by February 1 I'll]
February 28,2005
City Council holds public hearing at 7:00 P.M. on a Modification to the
Redevelopment Plan for Central Monticello Redevelopment Project No. 1 and
the establishment of Tax Increment Financing District No. 1-33, and passes
resolution approving the Plans. [Ehlers & Associates to send Council packet
information to the Cizyon February 17, 2005}
City Council holds public hearing on Business Subsidy Agreement and approves
Development Agreement.
By _~.._, 2005 Ehlers & Associates files Plans with the MN Dep3ltment of Revenue, requests
certification of the TIF District with Wright County.
*Beeause the City staff believes that the proposed tax increment linaneing district will not require unplanned county road
improvemcnts. the TIr Plan was not forwarded to the County Board 45 days prior to the public hearing. The County Board. by
law. has 45 days to review the TIF Plan to determine if any t.:ounty roads will be impaded by the development. Please be aware
tllalthe County Board could t.:lainl that ta.'\ innement should be used fi)J' county roads, evcn after the publk hearing.
e
EHLERS
~ A S ~ () C I A , t ~ HI(:
.
.
.
DISTRIBUTION LIST
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
AND THE CITY OF MONTICELLO
WRIGHT COUNTY, MINNESOTA
FOR THE PROPOSED MODIFICATION TO THE REDEVELOPMENT PLAN FOR THE
CENTRAL MONTICELLO REDEVELOPMENT PRO.JECT NO.1
CITY:
DEVELOPMENT
COUNSEL:
DEVELOPMENT
ADVISOR:
AND THE PROPOSED ESTABLISHMENT OF
TAX INCREMENT FINANCING DISTRICT NO. 1-33
(an economic development district)
Ollie Koropehak
City of Monticello
505 Walnut Avenue, Suite 1.
Monticello, MN 55362-883 I
Steve Buhul
Kcnnedy & Graven, Chartered
470 Pillsbury Center
200 South Sixth Street
Minneapolis, MN 55402
Todd Hagen
thagen(l:i)eh lers~i nc .com
Mark Ruff
mark(cileh Icrs- inc.eom
Susan Landrum
sal(Clleh lers- i nc.com
Ehlers & Associates, Inc.
3060 Ccntre Pointe Drive
Roseville, MN 55113-1105
65] -697-8555 Fax
.
EHLERS
& ASSOCIATES INC
011 ie.koropchak(2vci .mQJlticello. mn. us
763-271-3208 Direct
763-295-2711 Phone
763-295-4404 Fax
~..!?1!l?~.!.1 (~v ken n ed y - gra vcn . co m.
612-337-9228 Phone
612-337-9310 Fax
651-697 -8508 Phone
65] -697-8505 Phone
651-697 -8531 Phone
.
.
.
e
EHLERS
MEMORANDUM
~ ASS () I: I A T [S I N C
TO:
Ollie Koropchak - City of Monticello
FROM:
Susan Landrum - Ehlers & Associates, Inc.
DATE:
January 11, 2005
RE:
Tax Increment Financing District No. 1-33
Thank you for the opportunity to assist in the establishment ofT'IF District No. 1-33. The following
information is needed for preparing the 1'1 F Plan and other rclated documents:
D
Map showing the location of TIF District No. 1-33 within Central Monticello
Redevclopment Project NO.1
County roads to be impacted by TI F District No. 1-33? Y / N
Dctailed Project Description
Estimated uses of TI F
But/For Analysis from Developer (if applicable)
Copies of any studics or reports or analyses (such as market studies. planning documcnts.
'r-IF applications. or stalTreports) to be used to support the City Council findings for the 1'1 F
District.
D
D
D
D
D
Pleasc fax or email this information as it becomes availablc. Pleasc contact me if you have any
questions. 'rhank you for your assistancc.
from the desk (~l
,I,'usan Landrum
TfF Coordinator
Ehlers & Associates, Inc.
3060 Centre Pointe Drive
Roseville, MN 55113
Phone: 651-697-8531
Fax: 651-697-8555
Email:sal(a)ehlers-inc.com
.
.
.
HRA Agenda - 01/17/05
6.
Consideration of calling for a public hearinl! date for proposed business subsidy to
William R. and Barbara R. Tapper and Strategic Equipment and Supplv Corporation.
A. Reference and backl!round:
The Housing and Redevelopment Authority's (BRA) ability to grant business subsidies is
governed by the limitations established in the Minnesota Statutes 1161.993 through 1161.994.
On September 8, 1999, the HRA held a public hearing and adopted its Business Subsidy
Criteria per the Minnesota Statutes with amendments in 2000 and 2004. A business receiving
assistance for economic development must create jobs within two years, set job and wage level
goals, and must submit a report to DEED each year until the business has achieved its goals.
Before granting a business subsidy that exceeds $] 00,000 for a local government grantor, the
grantor must provide public notice and hold a hearing on the subsidy. Because it is unclear as
to the amount ofthis business subsidy, it is suggested to proceed with the public hearing notice.
The public hearing notice will appear in the Monticello Times on 20th of January, 2005, for a
public hearing date of February 2,2005.
B. Alternative Action:
1.
A motion calling for a public hearing date of February 2, 2005, 6:00 p.m., associated
with proposed business subsidy for William. R. and Barbara R. Tapper and Strategic
Equipment and Supply Corporation.
2. A motion calling for a public hearing date of _ ' 6:00 p.m.,
associated with the proposed business subsidy for William R. and Barbara R. Tapper
and Strategic Equipment and Supply Corporation..
3. A motion to deny calling for a public hearing date.
C. Recommendation:
City Administrator and Economic Development Director recommend Alternative Action No.1.
D. Supportim! Data:
Copy of the public hearing notice.
.
.
.
NOTICE OF PUBLIC HEARING
CITY OF MONTICELLO, MINNESOTA
NOTICE IS HEREBY GIVEN that the Housing and Redevelopment Authority in and for the City
of Monticello, Minnesota, wil1 hold a public hearing on Wednesday, February 2,2005,6:00 p.m. in the
Bridge Room, 505 Walnut Street, Monticello, Minnesota, regarding a proposed business subsidy to be
granted by the Housing and Redevelopment Authority in and for the City of Monticel1o, Minnesota, to
William R. and Barbara R. Tapper and Strategic Equipment and Supply Corporation (the "Recipients")
under Minnesota Statutes, Sections 116J. 993 to 1161.994. The proposed subsidy involves a tax
increment finance pay-as-you-go note to assist with demolition and site improvement costs as part of
the expansion of an existing manufacturing facility by the Recipients in the City.
Information about the proposed business subsidy and a summary of the business subsidy agreement
are available for inspection at City Hall during regular business hours.
AI1 interested persons may appear and he heard orally and in writing.
Ollie Koropchak, I lousing & Redevelopment Authority Executive Director
(January 20, 2005)
.
.
.
HRA Agenda - 01/17/05
7.
Consideration to approve a resolution requestin!! the City Council of the City of
Monticello call for a public hearing on a modification to the Redevelopment Plan for
Central Monticello Redevelo~ment Proiect No.1 and the establishment of a TIF Plan
for TIF District No. 1-33 (an Economic Development District) therein and the adoption
of a TIF Plan therefor.
A. Reference and back!!round:
The attached resolution f()r approval simply requests the City Council on January 24, 2005, call
for a public hearing date of February 28, 2005, for consideration to modify the Redevelopment
Plan of the Central Monticello Redevelopment Project No.1, and establish and adopt the TIF
Plan for TIF District No. 1-33. Additionally, the resolution states county and school district
must receive copies of the Plan for TlF District No. 1-33 by no later than January 28, 2005,
and the City Council and Planning Commission are to receive copies prior to February 28,
2005.
B. Alternative Action:
1.
A motion to approve a resolution requesting the City Council of the City of Monticello
call for a public hearing on a modification to the Redevelopment Plan for Central
Monticello Redevelopment Project No. I and the establishment of a TIF Plan lor HI'
District No. 1-33 (an Economic Development District) therein and the adoption ofthe
'fIF Plan therefor.
2. A motion to deny approval of the said resolution.
3. A motion to table any action.
C. Recommendation:
The City Administrator and Executive Director recommend Alternative No. I in order to begin
the TIF process.
D. Supportill!! Data:
Copy of resolution for adoption.
.
.
.
MONTICELLO IHHJSING AND REDEVELOPMENT AUTHORITY
CITY OF MONTICIU,LO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLlJTION NO.
RESOLUTION REQUESTING TIlE CITY COUNCIL OF TI--m CITY OF
MONTICELLO CALL FOR A PUBLIC HEARING ON A MODJFICATION TO THE
REDEVELOPMENT PLAN FOR CENTRAL MONTICELLO REDEVELOPMENT
PROJECT NO.1 AND THE. ESTABLISHMENT OF A TAX INCREMENT FINANCING
PLAN FOR TAX INCREMENT FINANCING DISTRICT 1-33 (AN ECONOMIC
DEVELOPMENT DISTRICT) THEREIN AND THE ADOPTION OF A TAX
INCRMENT FINANACING PLAN THEREFOR.
BE IT RESOLVED, by thc Board of Commissioners (the "Board") of the Monticello Housing and
Redevelopment Authority (thc "HRA") as follows:
WHEREAS, the City Council (the "Council") of thc City of Monticello, Minnesota (the "City")
established Ccntral Monticello Redevelopment Project No. I pursuant to Minnesota Statutes, Minnesota
Statutes, Sections 469.174 through 469.1799, inclusive, as amended, in an effort to encourage the
development and redevelopment of certain designated areas within the City; and
WHEREAS, the HRA is proposing a Modification to the Redevelopment Plan for Central Monticello
Redevelopment Project No.1 and the establishment of a Tax Increment Financing Plan for Tax Increment
Financing District No. 1-33 therein and the adoption of a Tax Increment Financing Plan thcrefor, all
pursuant to, and in accordance with, Minnesota Statutes, Sections 469.174 through 469.1799 and Sections
469.001 to 469.047, inclusive, as amended;
NOW, THEREFORE BE IT RESOLVED by the Board as follows:
I. The HRA hereby requests that the Council call for a public hearing on February 28,2005, to consider
the proposed adoption of a Modification to the Redevelopment Plan for Central Monticello
Redevelopment Project No. ] (the "Redevelopment Plan Modification") and the proposed adoption
of the Tax Increment Financing Plan (the "TIF Plan") for Tax Increment Financing District No. ] -33,
an economic development district, (the Redevelopment Plan and the TIF Plan are referred to
collectively herein as the "Plans") and cause notice of said public hearing to be given as required by
law.
2. The HRA directs the Executive Director to transmit copies of the Plans to the Planning COlllmission
of the City and requcsts the Planning Commission's written opinion indicating whcther the proposed
Plans arc in accordance with the Comprehensive Plan of the City, prior to the date of the public
hearing.
3. The Executive Director of the I IRA is hereby directed to submit a copy of the Plnns to thc Council
for its approval.
4. The HRA directs the Executive Dircctor to transmit the Plans to the county and thc school district(s)
in which lax Increment Financing District No. 1-33 is located not later than .Innuary 28. 200S.
.
.
.
5. Staff and consultants arc authuriled and directed to take all steps necessary to prepnre the Plans and
related documents and to undertake uther aetions necessary to bring the Plan before the Council.
Approved by the Buard on January 17,2005.
Chair
ATTEST: