HRA Agenda 02-02-2005
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AGENDA
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, February 2, 2005 - 6:00 p.m.
505 Walnut Street - Bridge Room
Commissioners:
Chair Bill Fair, Vice Chair Darrin Lahr, Dan Frie, Brad Barger, and Steve
Andrews.
Council Liaison:
Staff:
1.
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3.
4.
5.
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6.
Wayne Mayer.
Rick Wolfsteller, Ollie Koropchak, and Angela Schumann.
Call to Order.
Consideration to approve the January 5, 2005 and January 17,2005 HRA minutes.
Consideration of adding or removing items from the agenda.
Consent Agenda.
Consideration of a progress report from Brad Johnson or Barry Fluth relative to Phase II
of Landmark Square and authorization to begin process for establishment of
Redevelopment TIF District if so determined.
Consideration to approve a resolution adopting a modification to the Redevelopment Plan
for Central Monticello Redevelopment Project No.1 and establishing TIF District No. 1-
33 therein and adopting a TIF Plan therefor.
7. Public Hearing and consideration to approve, the Business Subsidy Agreement, a
provision of the Contract for Private Development among the HRA, Tapper's Holdings
LLC, and Strategic Equipment and Supply Corporation, and to adopt an Authorizing
Resolution approving the Contract for Private Redevelopment with Tapper's Holdings
LLC and awarding the sale of, and providing the form, terms, covenants and directions
for the issuance of its $100,000 Tax Increment Revenue Note, Series 2005.
8. Consideration to authorize payment of HRA bills.
9. Consideration of Executive Director's Report.
10. Committee Reports.
a) Marketing Committee - Lahr and Barger.
11.
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Other Business.
a) Next HRA meeting March 2, 2005.
12. Adjournment.
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MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, January 5th, 2004 - 6:00 p.m.
505 Walnut Street - Bridge Room
Commissioners Present:
Chair Bill Fair, Vice Chair Darrin Lahr, Brad Barger
Commissioners Absent:
Steve Andrews, Dan Frie
Staff Present:
Rick Wolfsteller, Ollie Koropchak, and Angela Schumann.
1. Call to Order.
Chairman Fair called the meeting to order at 6:00 PM, and declared a quorum, noting the
absence of Commissioners Frie and Andrews.
2. Consideration to approve the December 1 st, 2004 HRA minutes.
MOTION BY COMMISSIONER LAHR TO APPROVE THE MINUTES OF
DECEMBER 1st, 2004.
MOTION SECONDED BY COMMISSIONER BARGER. MOTION CARRIED.
3.
Consideration of adding or removing items from the agenda.
NONE.
4. Consent Agenda.
NONE.
5. Consideration of a progress report from Brad Johnson or Barry Fluth relative to Phase II
of Landmark Square and authorization to begin process for establishment of
Redevelopment TI D District 1-33 if so determined.
No report.
6.
Consideration to review for finalization the Monticello Transformation Home Loan
Program.
Koropehak presented the revised program brochure for approval. Koropchak noted that
the program would be going before Council t()r their final review at the Decemher
meeting. An informational breakfast to introduce the program will he held in January for.
title companies, real estate agencies, lenders and remodelers. Lahr suggested that the
program may also be a worthwhile topic for the Chamher luncheon.
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For the finalization of the brochure piece, Lahr requested that the loan amount examples
he boxed in and reeommended that the word "examplc" be added.
MOTION BY COMMISSIONE BARGER TO ACCEPT AS FINAL THE
MONTICELLO TRANSFORMATION I IOME LOAN PROGRAM BROCHURE WITH
ONE CORRECTION AS NOTED.
MOTION SECONDED BY COMMISSIONER LAIIR. MOTION CARRIED.
7. Consideration to approve authorizing transfer of $500,000 for acquisition of 35 acres of
Otter Creek Crossing and update on the closing. I-I A zoning, covenants and preferred
mcasures.
Fair noted that the closing on the property had occurred.
Koropchak asked the HRA if they had any reservations about the project in light ofthe
possible A VR relocation to the area. The liRA Commissioners all agreed that the A VR
is not an appropriate use for thc park and is not consistent with what has been outlined for
the park.
Koropchak noted that the IDC had met and the Councilors-elect were rcsponsive to thc
IDC member's point of view that other location options for A VR should be pursued.
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The Commissioners asked what A VR would pay for land in the Otter Creek Business
Park. Wolfsteller explained that the final purchase price would be part of negotiation
process. It was noted that bccause the City controls the land, it would be the most
expedient relocation option. If A VR is pushed to that site, the land would need to be
rezoned, as the entire City parcel had just been zoned I ~ 1 A.
Koropchak rcported that Council did adopt the rczoning and the basic premise of the
covenants. Koropchak's recommendation is to record the covenants against the whole
120 acres with Chadwick as a co-signer, particularly as the zoning applies to the whole
120 acres. It is also in Chadwick's best interest to co-sign, as the covenants protect the
value of his property.
MOTION I3Y COMMISSIONER LAHR TO APPROVE AUTIIORIZING THE
TRANSFER OF $500,000 FROM THE HRA GENRAL FUND (NON-RESTRICTIVE)
FOR ACQUISITION OF 35 ACRES OF OTTER CREEK BUSINESS CAMPUS
DESCRIBED AS LOT 1, BLOCK 2, OTTER CREEK CROSSING.
MOTION SECONIJED I3Y COMMISSIONER BARGER. MOTION CARRIED.
Koropchak notcd that Ruff had recommended the land be placed in the HRA' s name.
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8.
Consideration to authorize payment of HRA bills.
MOT'ION BY COMMISSIONER BARGER TO AUTl-IORIZE PAYMENT OF HRA
BILLS.
MOTION SECONDED 13Y COMMISSIONER LAHR. MOTION CARRIED.
8. Consideration of Executive Director's Report.
Koropchak noted that some of the leads she has received will most likely not fit the Otter
Creek prcferred measures. Koropchak has scnt thc customer worksheet to the interested
parties to dctermine whether they will fit.
Koropchak highlighted that Xcel Energy has committed $15,000 ($7,500 now and then
after the first of the year) toward the marketing of Otter Creek Business Campus.
Fair inquired whether the City had any prospects for the old theater building. Koropchak
noted that she and O'Neill had met with a potential developcr interested in the theater
property and possibly other parcels within the block. The Commissioners agreed that the
HRA's standpoint is that there is always interest in expanding redevelopment projects in
that area.
Koropchak noted that she had received a letter from the State Auditor's office requesting
information on the original TIF plans for about 12 districts. She will be checking on
whether they actually need this information, as some districts had been decertified.
Additionally, Koropchak noted that the State had received the confirmation of
decertification reports.
Koropchak indicated that she had spoken with Bill Tapper about the possibility of an
expansion to the former H Window building. The expansion would bring about 40 jobs
to the area. Koropchak inquired whether the HRA would be interested in ercating a TIF
district just on the expansion area. Steve Bubul and Koropehak would be meeting with
the proposed tenant to discuss TIF requirements, should the HRA consider this a viable
option. The HRA Commissioners indicated that they did not have any objections to the
creation of the district.
Koropchak noted that the HRA had received paymcnt of $2,045 from Mike Cyr for the
administrative cost over-run. She also explained that Standard Iron had been billed
$45.00 for legal fees associated with Release of Contract.
A thank you note had been sent to Xed Energy f()r the marketing contribution.
9. Committee Reports.
NONE.
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MOTION BY COMMISSIONER BARGER TO ADJOURN.
MOTION SECONDED BY COMMISSIONER LAHR. MOTION CARRIED.
Chairman
Secretary
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MINUTES - SPECIAL MEETING
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Monday, January 17,2005 - 7:00 p.m.
505 Walnut Street - Academy Room
Commissioners Present:
Chair Bill Fair, Vice Chair Darrin Lahr, Dan Frie, and Brad Barger.
Commissioners Absent:
Steve Andrews.
Council Liaison Present:
Wayne Mayer
Staff Present: Ollie Koropchak.
Guests: Bill and Barb Tapper, Westlund Distributing
1. Call to Order.
Chair Fair called the HRA meeting to order at 7:00 p.m. declaring a quorum. The HRA
welcomed newly appointed Council Liaison Wayne Mayer.
2.
Consideration to approve the January 5. 2005 HRA minutes.
No action, minutes not available.
3.
Consideration of adding or removing items from the agenda.
None.
4. Consent Agenda.
Not applicable.
5.
Consideration to approve authorization to enter into a Preliminary Development
Agreement between the HRA and William R. and Barbara R. Tapper.
Koropchak noted Bill Tapper had executed the Preliminary Development Agreement and
deposited $7,500; therefore, the BRA is asked to enter into the Agreement authorizing
preparation of a TIF District. Bill and Barb Tapper, the applicant, explained they had
purchased the property located at 1324 Edmondson Avenue NE for Westlund
Distributing. Westlund will occupy 42,000 sq ft of warehouse space and 3,000 sq ft of
office space. In order to accommodate the needs of a proposed tenant, Strategic
Equipment and Supply Corporation; Tapper plans to construct a 25,000 sq ft warehouse
addition to the northerly end of the existing 60,000 sq ft facility. Strategic will also
leaselO,OOO sq ft of existing warehouse space and 5,000 sq ft of existing office space for
a total of 40,000 sq ft. The restaurant equipment and supply company (the lessee) was
formed in 2000 and within the past few years has purchased a number of smaller
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HRA Minutes - 01117/05
restaurant supply companies. The national company will retain sales and distribution
centers in St. Cloud and Minneapolis. The company plans to bring 50-55 full-time jobs
to Monticello within two years. Tapper continued stating the company plans to make
Monticello its headquarters and control center, they like the central and 1-94 location.
Tapper stated the company sees the higher-skilled positions remaining and perhaps, some
turn-over of the lesser skilled positions due to travel distance and retirement. The
minimum average wage per hour w/o benefits is $17.90 and the median wage per hour
w/o benefits is $19.00. Tapper was unaware of the proposed truck traffic.
Koropchak noted Bill Tapper, Strategic, HRA Attorney Steve Bubul, and herself had met
to discuss ifthe project met the Minnesota Statutory requirements for TIF and how to
structure the Contract for Private Development. It appears the Contract will be among the
HRA, Tapper's, and Strategic. The pay-as-you-go finance payments would cease if the
tenant does not re-new its five-year lease and the owner would have the option to solicit a
new tenant. According to the one construction bid received, the amount of eligible TIF
expenditures totaled $199,950 (demo of existing building, asphalt, curb, and earthwork).
The TIF Cashflow estimates using 5.5% interest rate, over 9 years, and a $750,000
estimated market value for the addition generated $112,000 NPV of tax increment. Using
6.2% interest rate over 8 years generated $98,000 NPV of tax increment. Tapper had
presented a building rental analysis using a rent of$5.00 per sq ft which included taxes
and acceptable to the tenant. The project is very, very tight with very little margin, said
Tapper, who will benefit long term. Ehlers will compare the proposed rate to industry
standards as part of the "but for" findings.
Koropchak continued explaining that when the HRA enters into the Preliminary
Development Agreement, this means the HRA agrees to use tax increment financing to
assist with the proposed project and authorizes the HRA attorney and financial consultant
to begin preparation of the process.
Commissioner Barger made a motion to approve authorization to enter into a
Preliminary Development Agreement between the HRA and William R. and Barbara R.
Tapperfor the property located at 1324 Edmondson Avenue NE. Commissioner Frie
seconded the motion and with nofurther discussion, the motion passed unanimously.
6.
Consideration of calling for a public hearing date for proposed business subsidy to
William R. and Barbara R. Tapper and Strategic Equipment and Supply COl}Joration.
As the HRA prepares to award a business subsidy for the proposed Tapper project, a
public hearing is necessary to satisfy the Minnesota Statutes. The HRA public hearing
date is scheduled for February 2, 2005, at which time the HRA will also approve the
amount of business subsidy and the job and wage level goals as defined in the Contract
for Private Development. The Council approves the Business Subsidy Agreement within
the Contract on
February 28. It was noted to change the name from William R. and Barbara R. Tapper to
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HRA Minutes - 01117/05
Tapper's Holdings LLC.
Commissioner Lahr made a motion calling/or a public hearing of February 2, 2005,
6:00 p.m., associated with the proposed business subsidyfor Tapper's Holdings LLC and
Strategic Equipment and Supply Corporation. Commissioner Barger seconded the
motion and with no further discussion, the motion passed unanimously.
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 Proiect No. 1 and the establishment of a nF Plan for
nF District No. 1-33 (an Economic Development District) therein and the adoption of a
nF Plan therefor.
The HRA was asked to approve a resolution requesting the City Council on the 24th of
January, 2005, call for a public hearing date of February 28, 2005, to consider modifying
the Redevelopment Plan for Central Monticello Redevelopment Project No.1 and to
establish TIF District No. 1-33. The resolution also states that the county and school
districts must receive a copy of the Plan by no later than January 28, 2005 and the
Council and Planning Commission prior to February 28,2005.
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Commissioner Frie made a motion to approve the resolution requesting the City Council
of the City (~f Monticello call for a public hearing on a mod!fication to the Redevelopment
Plan for Central Monticello Redevelopment Project No.1 and the establishment of a TIF
Plan/or TIF District No. 1-13 (an Economic District) therein and the adoption of the TIF
Plan therefor. Commissioner Lahr seconded the motion and with no further questions,
the motion passed unanimously.
8.
Committee Reports.
a) Marketing Committee - Committee Members Barger and Lahr recommended the
domain name of MonticelloLand.com for the Otter Creek Business Campus.
9.
Other Business.
a) Next HRA meeting February 2, 2005.
b) Ad Hoc Committee for Open and Outdoor Storage Ordinance - The HRA is requested
to send a representative to this Ad Hoc Committee. Some time ago, the City via the
Planning Commission had requested an amendment to the Open and Outdoor Storage
Ordinance relating to industrial zoned areas. The committee of industrial business
owners; IDC, HRA, Planning Commission members; and staff is scheduled to meet
Wednesday, January 19,2005,3:00 p.m. in the Academy Room to review the current
ordinance and outline current concerns and issues. Lahr volunteered and would check his
calendar. Alternates: Dan Frie and Brad Barger.
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c) Transformation Home Loan Program - Koropchak reported the City Council on
January 10, 2005, voted to support the program. Invitation cards were mailed the next
day to lenders, builders, title companies, and real estate agents for a breakfast to promote
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HRA Minutes - 01/17/05
the program. Koropchak will post the breakfast to allow a quorum of the commissioners
to attend the breakfast scheduled for January 26, 2005, at 7:30 a.m. in the North
Mississippi Room.
10. Adiournment.
Commissioner Lahr made a motion to acfiourn the HRA meeting. Seconded by Commissioner Frie
and with nofurther business, the meeting adjourned at 7:45 p.m.
HRA Chair
Ollie Koropchak, Recorder
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HRA Agenda - 02102105
5.
Consideration of a proe:ress report from Brad Johnson or Barry Fluth relative to
Phase II of Landmark Square and authorization to be2in process for establishment
of a Redevelopment TIF District if so determined.
Brad Johnson plans to attend the HRA meeting for an update. My understanding, Mr.
Johnson has entertained a restaurant owner and toured the City of Monticello.
Additionally, they may have one office tenant. As you recall, Mr. Fluth and the HRA
executed a Preliminary Development Agreement on September 14,2004, and Fluth
deposited $7,500. Once they have secured tenants for financing and they give the go
ahead, the HRA consultant and attorney will be notify to begin the TIF process and the
level of assistance will be discussed.
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HRA Agenda - 02/02/05
6.
Consideration to approve a resolution adoptine: the modification to the Redevelopment
Plan for Central Monticello Redevelopment Proiect No.1; and establishing TIF
District No. 1-33 therein and adoptine: the TIF Plan therefor.
A. Reference and background:
At the January 17,2005, the HRA approved entering into a Preliminary Development
Agreement with the Tappers and authorized the financial and legal consultants begin preparation
o1'TIF District No. 1-33, an Economic District. A public hearing for establishment ofTIF
District No. 1-33 has bcen called for February 28,2005, by the City Council. The TIF Plan
was distributed to the taxing jurisdictions on January 28, 2005, fcn compliance with the 30-day
notice to comment. On February 1, 2005, the Planning Commission is scheduled to approve a
TIF resolution finding the project consistent with the Comprehensive Plan. Attorney Steve
Bubul, Kennedy & Graven, has prepared a draft copy the Contract for Private Development
for review. City Staff is scheduled to meet with Grady Kinghorn, Kinghorn Associates, for a
pre-construction consultation on February 11 or 14.
The company's construction financing is through Stearns Bank, S1. Cloud, and the EDA IS
scheduled to consider a real estate development loan on February 10,2005.
The district is being established to assist with site improvement costs associated with the
construction of a 25,000 sq n addition to an existing 60,000 sq ft facility located at 1324
Edmondson Avenue NE. The parcel is located within Oakwood Industrial Park and is zoned
1-2 (Heavy Industrial.) The expansion plus a portion of the existing space will be leased to
Strategic Equipment and Supply Corporation who has committed to the creation of 40 full-time
jobs.
The attached resolution describes the findings for establishment of the TIF District, please
reVlew.
B. Alternative Action:
1. A motion to approve the resolution adopting the modfication to the Redevelopment
Plan for Central Monticello Redevelopment Project No.1; and establishing TlF District
No. 1-33 therein and adopting the TIF Plan therefor.
2. A motion to deny approval of the resolution ..........
3. A motion to table any action.
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HRA Agenda - 02/02/05
c.
Recommendation:
The City Administrator and Executive Director recommendation is alternative no. I
D. Supportine: Data:
Copy of resolution for adoption, excerpts of the TIF Plan, and jobs and wage levels.
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MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
CITY OF MONTICELLO
WRIGHT COUNTY
STATE OF MINNESOTA
RESOLUTION NO.
RESOLUTION ADOPTING A MODIFICATION TO THE REDEVELOPMENT
PLAN FOR CENTRAL MONTICELLO REDEVELOPMENT PROJECT NO. 1
AND ESTABLISHING TAX INCREMENT FINANCING DISTRICT NO. 1-33
THEREIN AND ADOPTING A TAX INCREMENT FINANCING PLAN
THEREFOR.
WHEREAS, it has been proposed by the Board of Commissioners (the "Board") of the
Monticello Housing and Redevelopment Authority (the "HRA") and the City of Monticello (the "City")
that the HRA adopt a Modification to the Redevelopment Plan for Central Monticello Redcvelopment
Project No.] (the "Redevelopment Plan Modification") and establish Tax Increment Financing District
No. ] -33 and adopt a Tax Increment Financing Plan (thc "TIF Plan") therefor (the Rcdevelopment Plan
Modification and the TIF Plan are rcferred to collectively herein as the "Plans"), all pursuant to and in
conformity with applicable law, including Minnesota Statutes, Sections 469.001 to 469.047, and Sections
469. 174 to 469. I 799, inclusive, as amended (the "Act"), all as reflected in the Plans and presented for the
Board's consideration; and
WHEREAS, the HRA has investigated the facts relating to the Plans and has caused the Plans to
be prepared; and
WHEREAS, the BRA has performed all actions required by law to be performed prior to the
adoption of the Plans. The BRA has also requested the City Planning Commission to provide for review
of and written comment on the Plans and that the Council schedule a public hearing on the Plans upon
published notice as required by law.
NOW, THEREFORE, BE IT RESOLVED by the Board as follows:
I. The HRA hereby finds that Tax Increment Financing District No. I -33 is in the public
interest and is an "economic development district" under Minnesota Statutes, Section 469.174, Subd. 12,
and finds that the Plans conform in all respects to the requirements of the Act and will help fulfill a need
to develop an area of the State of Minnesota which is already built up and that the adoption of the
proposed Plans will help provide employment opportunities in the State and in the prescrvation and
enhancement of the tax basc of the City and the Statc because it will discourage commerce and industry
from moving their operations to another state or municipality and thereby serves a public purpose.
2. The HRA further finds that the Plans will afford maximum opportunity, consistent with
the sound needs for the City as a whole, for the development or redevelopment of the project area by
private enterprise in that the intent is to provide only that public assistance necessary to make the private
developments financially feasible.
3.
expanded.
The boundaries of Central Monticello Redevelopment Project No. I are not being
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4. Conditioned upon the approval thereof by the City Council following its public hearing
thereon, the Plans, as presented to the HRA on this date, are hereby approved, established and adopted
and shall be placed on file in the office ofthe Executive Director of the I-lRA.
5. Upon approval of the Plans by the City Council, the staft~ the HRA's advisors and legal
counsel arc authorized and directed to procecd with the implementation of thc Plans and for this purpose
to negotiate, draft, prepare and present to this Board for its consideration all further plans, resolutions,
documents and contracts necessary for this purpose. Approval of the Plans does not constitute approval
of any project or a Development Agreement with allY developer.
6. Upon approval of the Plans by the City Council, the Executive Director of the I-IRA is
authorized and directed to forward a copy of the Plans to the Minnesota Departmcnt of Revenue pursuant
to Minnesota Statutes 469.] 75, Subd. 4a.
7. The Executive Director of the HH.A is authorized and dirccted to forward a copy of the
Plans to the Wright County Auditor and request that the Wright County Auditor certify the original tax
capacity ofthe District as described in the Plans, all in accordance with Minnesota Statutes 469. 177.
Approved by the Board of Commissioners of the Monticello Housing and Redevelopment
Authority this 2'''' day of February, 2005.
Chair
ATTEST:
Secretary
Ehlers & Associates, Inc.
Tax Increment Financing District Overview
City of Monticello - Tax Increment Financing District No. 1-33
The following summary contains an overview of the basic elements of the Tax Increment Financing Plan
for TIF District No. 1-33. More detailed information on each of these topics can be found in the complete
TIF Plan.
Proposed action:
Redevelopment Project:
Type ofTIF District:
Parcel Numoer:
Proposed Development:
Maximum duration:
Estimated annual tax
increment:
Proposed uses:
Form of financing:
Administrative fee:
I nterfu nd I.oan Req u i relHent:
Establishment of Tax Increment Financing District No. 1-33 (District)
and the adoption of a Tax Increment Financing Plan (TIF Plan).
Adoption of a Redevelopment Plan Modification for the Central
Monticello Redevelopment Project No. I. (The Modification is to
include the project activities anticipated in the District.)
An economic development district
155-018-002120
The District is being created to facilitate construction of a 25,000 s.f.
addition to the existing approximate 60,000 s.f. industrial building for
Strategic Equipment & Supply Corporation.
The duration of the District will be 8 years frolH the date of receipt of
the first increment (9 years of increment). 'fhe date of receipt of the
first tax increment will be approximately 2007. Thus, it is estimated
that the District, including any modifications of the TIF Plan for
subsequent phases or other changes, would terminate after 2015, or
when the TIF Plan is satisfied.
Up to $] 8,299
The TIF Plan contains a budget that authorizes the maximum amount
that may be expended:
Site Improvements/Preparation.... ............ ............. ........... $102,700
Interest................................................................................ $40,000
Administrative Costs (up to 10%) ........................................$7.300
TOTAL PROJECT COSTS ..........................................$150,000
See Subsection 2-10, page 2-5 of the T1F Plan for the full budget
authorization. Additional uses of funds are authorized which include
inter-fund loans and transfers and bonded indebtedness.
Financing will be primarily through a pay-as-you-go note.
Up to 100;1, of annual increment, if costs are justified.
II' the City wants to pay for administrative expenditures from a tax
increment fund, it is recolllmended that a resolution authorizing a loan
from another fund must be passed PRIOR to the issuance of the check.
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3 Year Activity Rule
(\\'469. j 76 5,'uhd / a)
T1F District Overview
4 Year Activity Rule
(1\' 469. /76 Suhd 6)
5 Year Rule
(II' 469. j 763 Suhd 3)
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At least one of the following activities must take place in the District
within 3 years from the date of certification:
· Bonds have been issued
. The authority has acquired property within the district
. The authority has constructed or caused to be constructed
public improvements within the district
. The estimated date whereby this activity must take place is
February, 2008.
After four years from the date of certification of the District one of the
following activities must have been commenced on each parcel in the
District:
. Demol ition
. Rehabilitation
. Renovation
· Other site preparation (not including utility serviccs such as
sewer and water)
. If thc activity has not been started by the approximately
February, 2009, no additional tax increment may be taken from
that parcel until the commencement of a qualifying activity.
Within 5 years of certification revenues derived from tax increments
must be expended or obligated to be expended, Tax increments are
considered to have been expended on an activity within the District ir
one ofthe following occurs:
. The revcnues arc actually paid to a third party with respect to
the activity
· Bonds, the proceeds of which must be used to finance the
activity, are issucd and sold to a third party, the revenues are
spent to repay the bonds, and the proceeds of the bonds either
are reasonably expected to be spent before the end of the later
of (i) the five year period, or (i i) a reasonable tcmporary period
within the meaning of the usc of that term under !;i. !48(c)(I) of
the Internal Revenue Code, or are deposited in a reasonably
required reserve or replacement fund
· Binding contracts with a third paJ1y are entered into for
performance of the activity and the revenues are spent undcr
the contractual obligation
. Costs with respect to the activity are paid and the revenues are
spent to reimburse ror payment of the costs, including intercst
on unreimhursed costs.
Any obligations in the Tax Increment District made afler
approximately Fehruary, 2010, will not bc eligible for repayment from
tax increments.
The reasons and facts supporting the findings ror the adoption of the TIF Plan for the District as
required pursuant to MS, /)'eclion 469./75, SUfhl 3, arc included in Exhibit A of the City Council
Adopting Resolution.
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Page 2
T1F District Overview
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BOUNDARY MAPS OF CENTRAL MONTICELLO REDEVELOPMEN'r PROJECT NO. I
AND TAX INCREMENT FINANCING DISTRICT NO, 1-33
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Office of Public Works. 909 Golf COllrllC Rd., Monticello, MN 55362. (763) 295-"I17(). 1:.."" 1-7~'" n_. ____
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HRA Agenda - 02/02/05
7.
Public Hearine: and consideration to approve. the Business Subsidy Ae:reement. a
provision of the Contract for Private Redevelopment between the HRA. Tapper's
Holdines LLC and Stratee:ic Equipment and Supplv Corporation.
Consideration to adopt an Authorizine Resolution approvine: Contract for Private
Redevelopment with Tapper's Holrlines LLC and awardine: the sale of. and
providine the form. terms. covenants and directions for the issuance of its Tax
Increment Revenue Note.
A. Reference and back!!round:
PUBLIC HEARING - BUSINESS SUBSIDY (OPEN AND CLOSE THE HEARING)
Per Minnesota Statutory, prior to granting a business subsidy that exceeds $100,000 for a
local government grantor, the grantor must provide public notice and hold a hearing on
the subsidy. The law outlines eight elements that must be included in the business
subsidy agreement plus job and wage level goals. Said public hearing notice appeared in
the Monticello Times on January 20,2005.
The TIF Cash Flow Estimates by Ehlers using a 6.2% interest rate over eight years
generated $98,515 Net Present Value. Based on the project construction cost estimates
and proposed rental rates, the project is very tight. Eligible TIF expenditures outweigh
the tax increment generated. Additionally, the project will result in 40 new jobs for the
City of Monticello.
See Section 3.4., page 9-11. Business Subsidy Agreement, Contract for Private
Redevelopment.
AUTHORIZING RESOLUTION AND CONTRACT FOR PRIVATE
REDEVELOPMENT
The Contract for Private Redevelopment outlines the terms and conditions of the TIF
assistance and the obligations of all parties to the Contract. The Contract was drafted by
Steve Bubul and Julie Eddington, Kennedy & Graven, and a copy has been provided to
the Redeveloper. Generally, the Contract is executed or agreed upon between the parties,
prior to the City Council approving the establishment of the TIF District. Per the
Contract, the HRA shall issue and the Redeveloper shall purchase a Note in the principal
amount of $100,000 for site improvement costs. The Note shall be delivered upon the
Redeveloper having submitted to the Authority written evidence that the Redeveloper has
incurred and paid the costs of the site improvements in at least the principal amount of
the Note. The Note shall bear an interest rate of 6.2% per annum until the earlier of
maturity or prepayment. Principal and interest payments shall be made solely from
I
.
. HRA Agenda - 02/02105
"Available Tax Increment", semi-annually, by the Authority to the Owner of the Note
commencing August 1,2007, through February 1, 2015. The Redeveloper agrees to
construct a 25,000 sq ft addition to an existing 60,000 sq ft warehouse/office facility
located in the Oakwood Industrial Park. Job and wage level goals created by the Tenant
are outlined in the Business Subsidy Agreement within the Contract. The construction of
the minimum improvements shall commence by Juiy 30, 2005, with completion by
December 31, 2005. The Council will be asked to approve the Business Subsidy
Agreement within the Contract on February 28, 2005.
The Authorizing Resolution approves the Contract for Private Redevelopment and its
execution and delegates the Executive Director to determine the date the Note is
delivered.
The Redeveloper must provide a copy of the lease agreement, evidence of construction
financing, evidence for "but for" test, proof of insurances, and approved construction
plans prior to issuance of the building permit.
B. Alternative Action:
.
1.
A motion to approve, the Business Subsidy Agreement, a provision of the
Contract for Private Development between the HRA, Tapper's Holdings LLC, and
Strategic Equipment and Supply Corporation.
A motion to adopt an Authorizing Resolution approving the Contract for Private
Redevelopment with Tapper's Holdings LLC and awarding the sale of, and
providing the form, terms, covenants and directions for the issuance of its
$100,000 Tax Increment Revenue Note, Series 2005.
2. A motion to deny approval of the Business Subsidy Agreement and the Contract
for Private Redevelopment..
3. A motion to table any action.
C. Recommendation:
The City Administrator and Executive Director recommend Alternative No.1 and
suggested TIF assistance in the amount of$100,000. This rounds out the amount in
dollars, the cash flow estimates do not include inflation, the finance method is pay-as-
you-go, and job and wage goals.
D. Supportinf.: Data.
.
2
(161.164) and therefore requireS a pUOIIC neanng.
Written and oral comments will be considered at the meeting,
-Rick Wolfsteller, City Administrator
(Jan. 13, 20,2004)
.
RESOLUTION NO. 2005-1
APPROVING SUMMARY PUBLICATION OF
, ORDINANCE NO. 419 AND ORDINANCE NO. 420
WHEREAS, the City Council for the City of Monticello, Minnesota adopted a
lengthy ordinance titled the "Cable Ordinance" establishing regulations governing
cable service; and
WHEREAS, the City Council has adopted a lengthy ordinance granting a 15-year
cable franchise to CC VI\I Operating LLC d/b/a! Charter Communications authoriz-
ing operation of a cable system and delivery of cable services in the City pursuant
to the Cable Ordinance; and
WHEREAS, as authorized by Minnesota Statutes, Section 412.191, subd. 4, the
City Council has determined that publication of the title and summary of the ordi-
nances will cleariy inform the public of the intent and effect of the ordinances; and
WHEREAS, a printed copy of both ordinances is available for inspection during
regular office hours in the office of the city clerk-administrator.
NOW THEREFORE, BE IT RESOLVED that the following summaries of the ordi-
nances are approved for publication: '
CITY OF MONTICELLO, MINNESOTA
ORDINANCE NO. 419
The Cable Ordinance establishes certain regulations governing the delivery of
cable service in the City to ensure that all cable providers are subject to compara-
ble obligations and burdens. The Cable Ordinance generally sets forth the condi-
tions for the delivery of cable service and requirements for cable franchises under
Minnesota Statutes, Chapter 238. The ordinance is effective the day, after publica-
tion.
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CITY OF MONTICELLO, MINNESOTA
ORDINANCE NO. 420
The Charter franchise ordinance grants a 15-year cable television franchise to
CC VIII Operating LLC d/b/a! Charter Communications authorizing operation of a
cable system and delivery of cable services in the City pursuant to the Cable
Ordinance. The franchise ordinance authorizes Charter to use rights-of-way in the
City to construct, operate and maintain a system to provide cable services, impos-
es a franchise fee, and sets forth certain other agreements concerning operation of
the system and delivery ot cable services. The franchise ordihance is effective upon
acceptance by Charger.
By Order of the City of Monticello, Minnesota
-Clint Herbst, Mayor
-Rick Wolfsteller, City Administrator
(Jan. 20, 2005)
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NOTICE OF PUBLIC HEARING
CITY OF MONTICELLO. MINNESOTA '
NOTICE IS HEREBY GIVEN that the Housing a[ld Redevelopment Authority in
and for the City of Monticello, Minnesota, will 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 Monticello, Minnesota, to William
R. and Barbara R. Tapper and Strategic Equipment and Supply Corporation (the
"Recipients") under Minnesota Statutes" Sections. H6J.993_tO.J16J.994.. The pro-
posed 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 man-
ufacturing facility by the Recipients in the City.
Information about the proposed business subsidy and a summary of the busi-
ness subsidy agreement are available for inspection at City Hall during regular busi-
ness hours.
All interested persons may appear and be heard orally and in writing.
-Ollie Koropchak, Housing & Redevelopment Authority Executive Director
(January 20, 2005)
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NOTICE OF PUBLIC HEARING
Notice is hereby given that a public hearing will be held by the City of
Monticello Planning Commission on February 1st. 2005 at 6:00 p.m., in the
Monticello City Hall to consider the following matter:
PUBLIC HEARING: Consideration of a request for an amendment to
Conditional Use Permit for Development Stage Planned Unit Development and
consideration of a revised Preliminary Plat for Carlisle Village, a 242 unit residen-
tial subdivision.
LOCATION: Plat of Carlisle Village, Mdnticello
APPLICANT: Shadow Creek Corporation
Written and oral testimony will be accepted on above subjects, and all persons
desiring to be heard on referenced subjects will be heard at this meeting.
Note: Decisions of the Planning commission will be subject to the approval or
denial of the City Council and will be considered on Monday, February 28th, 2004
at 7 p.m., at the Monticello City Hall.
-Fred Patch, Chief Zoning Official
(Jan. 20, 27, 2005)
lnticello
~ity Hall
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NOTICE OF PUBLIC HEARING
Notice is hereby given that a public hearing will be held by the City of Monticello
Planning Commission on February 1 st. 2005 at 6:00 p.rn., in the Monticello City Hall
to consider the following matter:
PUBLIC HEARING: Consideration of a request for an amendment to the
Monticello Zoning Ordinance regarding the replacement of billboard signage.
LOCATION: City of Monticello
APPLICANT: City of Monticello
Written and oral testimony will be accepted on above subjects, and all persons
desiring to be heard on referenced subjects will be heard at this meeting.
Note: Decisions o'f the Planning Commission will be subject to the approval or
denial of the City Council and will be considered on Monday, February 28th, 2004 at
7 p.m., at the Monticello City Hall.
-Fred patch,.9,hief Zoning Official
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~8th, 2004
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Second Draft
January 27, 2005
CONTRACT
FOR
I'RIV A TE REDEVELOPMENT
Between
HOlJSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO, MINNESOTA
.
And
TAPPER'S HOLDINGS LLC
And
STRATEGIC EQUIPMENT AND SUPPLY CORPORATION
Dated as of: February _, 2005
This docwnent was drafted by:
KENNEDY & GRA YEN, Chartered (JAE)
470 U.S. Bank Plaza
Minneapolis, Minnesota 55402
(612) 337-9300
. http://www.keIIDcdy-graven.com
2:iR069(.1AL)
MNI90-IIR
.
.
.
TABLE OF CONTENTS
Page
PREAMBLE ......................................................................................................................................... 1
ARTICLE I
Definitions
Section I. I. Definitions..................................................................................................................... 2
Section 2.1.
Section 2.2.
Section 2.3.
Section 3.1.
Section 3.2.
Section 3.3
Section 3.4.
Section 3.5.
Section 3.6.
Section 4.1 .
Section 4.2.
Section 4.3.
Section 4.4.
Section 5.1.
Section 5.2.
Section 6.] .
Section 6.2.
Section 6.3.
2SRO()')(.IAL)
MNI')().IIR
ARTICLE II
Representations and Warranties
Representations by the Authority................................................................................. 5
Representations and Warranties by the Redeveloper................................................... 5
Representations and Warranties by the Tenant ............................................................6
ARTICLE III
Property Acquisition
Status of Redevelopment Property............................................................................... 8
Environmental Conditions.......................... ...................... ,...........................................8
Financing Site lmprovements....................... ................................................................ 8
Business Subsidy Agreement............................................. ...... .................................... 9
Payment of Administrative Costs ...............................................................................1 ]
Records....................................................................................................................... 12
ARTICLE IV
Construction of Minimum Improvements
Construction of Improvements............... ...... ...........,............. ........................... ..........12
Construction Plans ...... ............................ ...... ...... ....................... ................. ................12
Commencement and Completion of Construction ........ ............................................. ] 3
Certj ficate of Completion....................... ................................................................... .13
ARTICLE V
Insurance
Insurance .............. ....... ............................ .................. ....................... ........... .... .... ........16
S u bordi nation.............................................................................................................. 1 7
ARTICLE VI
Tax Increment; Taxes
Right to Collect Delinquent Taxes .............................................................................18
Review of Taxes ............................... ...... ...... ......... ......................... ................. ........ ...18
Covenant Not to Petition ............................................................................................] 8
.
Section 7.1.
Section 7.2.
Section 7.3.
Section 8.1.
Section 8.2.
Scction 8.3.
Section 9.1.
Section 9.2.
Section 9.3.
Section 9A.
Section 9.5.
.
ARTICLE vn
Other Financine
(icnerally ..................................................................................................................... 19
Authority's Option to Cure Default on Mortgage ......................................................19
Modification; Subordination...................................... ................................................. 19
ARTICLE VIII
Prohibitions Aeainst Assil!nment and Transfer; Indemnification
Representation as to Development.......................................................................... ...20
Prohibition Against Redeveloper's Transfer of Property and
Assignment of Agreement .......... ......... ....... ....... .............. ............ ..... ...... .... ....... .........20
Release and Indemnification Covenants.............................. ......................................21
ARTICLE IX
Events of Default
Events of Default Defined....................................................................................... ...23
Remedies on Default................................................................................................... 23
No Remedy Exclusive............................................................................................... .23
No Additional Waiver Implied by One Waiver........................................................24
Attorney Fees.............................................................................................................. 24
ARTICLE X
Additional Provisions
Section 10.1. Conflict oflnterests; Representatives Not Individually Liablc..................................25
Section 10.2. Equal Employment Opportunity............................................ .....................................25
Section 10.3. Restrictions on Use............. .................................... .................................................. ..25
Section lOA. Provisions Not Merged With Deed ............................................................................25
Section 10.5. Titles of Articles and Sections....................................................... .............................25
Section 10.6. Notices and Demands ................................................................................................. 25
Section 10.7. (~ounterparts............................................................................................................... .26
Section 10.8. Recording.................................................................................................................... 26
Section 10.9. Amendment......................... ........... ......... ........ ... .............. ......... .......... ........ .... ......... ...26
Section 10.1 O. Authority Approvals................................................................................................... 26
Section 10.11. Minnesota Law ...........................................................................................................26
TESTl M ONI lJM ........................................................................................... ................................... S~ I
SIGNATlJRES ...... ................ ..................... ....... ................... ................... ......................................... S~ 1
SCHEDULE A
SCHEDULE B
SCHEDULE C
SCHEDULE D
.
:'SX()(,LJ(,I AF)
MNI9()-IIX
Redevelopment Property
Authorizing Resolution
Certificate of Completion
Subordination Agreement
11
.
.
.
CONTRACT FOR PRIV A TE REDEVELOPMENT
THTS AGREEMENT, made as of the _ day of febmary, 2005, by and between the
Housing and Redevelopment Authority in and for the City of Monticello, Minnesota (the
"Authority"), a public body corporate and politic under the laws of Minnesota, Tapper's Holdings
LLC, a Mimlesota limited liability company (collectively, the "Redeveloper") and Strategic
Equipment and Supply Corporation (the "Tenant"), a Delaware corporation.
WITNESSETH:
WHEREAS, the Authority has undertaken a program to promote economic development
and job opportunities and to promote the development of land which is underutilized within the City
of Monticello, Minnesota (the "City"), and in this connection created Central Monticello
Redevelopment Project NO.1 (the "Project") in an area (the "Project Area") located in the City and
desires to creatc Tax Increment financing District No. 1-33 (the "TIF District") within the Project
Area, all pursuant to Minnesota Statutes, Sections 469.001 to 469.047 (the "Act") and Minnesota
Statutes, Sections 469.174 to 469.179 (the "Act"); and
WHEREAS, pursuant to the Act, the Authority is authorized to undertake certain activities
to prepare such rcal property for development by private enterprise; and
WHEREAS, in order to achieve the objectives of the Redevelopment Plan for the Project
the Authority is prepared to pay celiain site improvement costs, in order to bring about development
in accordance with the Redevelopment Plan and this Agreement; and
WHEREAS, the Authority believes that the development of the Project Area pursuant to this
Agreement, and fulfillment generally of this Agreement, are in the vital and best intcrcsts of the City
and the health, safety, morals, and welfare of its residents, and in accord with the public purposes
and provisions of thc applicable State and loeal laws and requirements wlder which the Project has
been undertaken and is being assisted.
NOW, TI-IEREFORE, in consideration of the premises and the mutual obligations of the
parties hereto, each of them docs hereby covenant and agrce with the other as follows:
[Remainder of page intentionally left blank.l
25X06LJ(JAL)
MNILJO-IIX
.
.
.
ARTICLE I
Definitions
Section 1.1. Delinitions. In this Agreement, unless a different meaning clearly appears
from the context:
"Act" means Minnesota Statutes Sections 469.001 to 469.047, as amended.
"Agreement" means this Agreement, as the same may be from time to time modified,
amended, or supplemented.
"Authority" means the Housing and Redevelopment Authority Il1 and for the City of
Monticello, Minnesota.
"Authority Representative" means the Executive Director of the Authority, or any person
designated by the Executive Director to act as the Authority Representative for the purposes of this
Agreement.
"Authorizing Resolution" means the resolution of the Authority, substantially in the form of
attached Schedule B to be adopted by the Authority to approve this Agreement and authorize the
issuance of the Note.
"A vailable 'fax Increment" has the meaning provided in the Authorizing Resolution.
"Business Day" means any day except a Saturday, Sunday, legal holiday, a day on which
the City is closed for business, or a day on which banking institutions in the City are authorized by
law or executive order to close.
"Business Subsidy Act" means Minnesota Statutes, Section 116.1.994, as amended.
"City" means the City of Monticello, Minnesota.
"Certificate of Completion" means the certification provided to the Redeveloper, or the
purchaser of any pm1, parcel, or unit of the Redevelopmcnt Property, pursuant to Section 4.4 of this
Agreement.
"Construction Plans" means the plans, specifications, drawings and related documents on
the construction work to bc per1e)Dlled by the Redeveloper on the Redevelopment Property which
(a) shall he as detailed as the plans, specifications, drawings and related documents which are
submitted to the appropriatc building officials of the City, and (b) shall include at least the following
for each huilding: (1) site plan; (2) fcmndation plan; (3) basement plans; (4) floor plan fen cach
floor; (5) cross sections of each (length and width); (6) elevations (all sides); (7) landscape plan; and
(8) such other plans or supplements to thc foregoing plans as the Authority may reasonahly rcquest
to allow it to ascertain the nature and quality of the proposed construction work.
25X069(JAL)
MNI')O-IIX
2
.
.
.
"CoLlnty" means Wright County, Minnesota.
"Event of Default" means an aetion by the Redeveloper listed 111 Article IX of this
Agreement.
"Holder" means the owner of a Mortgage.
"Maturity Date" means the later of (a) the date that the Note has heen paid in full or
terminated in accordance with its terms, or (b) five years after suhstantial completion of the
Minimum Improvements.
"Minimum Improvements" means the construction on the Redevelopment Property of an
approximately 25,000 square foot distribution facility, as an expansion of the existing distribution
facility on that property.
"Mortgage" means any mortgage made by the Redeveloper that is secured, in whole or in
part, with the Redevclopment Property and that is a permitted encumbrance pursuant to the
provisions of Article VIII of this Agreement.
"Note" means a Tax Increment Revenue Note, substantially in the form contained in the
Authorizing Resolution, to be delivered by the Authority to the Redeveloper in accordance with
Section 3.3 hereof~ and any obligation issued to refund the Note.
"Project" means the Central Monticello Redevelopment Project No. I.
"Project Area" means the property within the Project, as described in the Pr~ject Plan.
"Redeveloper" means Tapper's FIoldings LLC, a Minnesota limited liability company, or its
permitted successors and assigns.
"Redevelopment Plan" means thc Redevelopment Plan for the Project.
"Redevelopment Property" mcans the real property described in Schedule A of this
Agreement.
"Site Improvements" means the demolition work, asphalt, curb work, and earthwork
necessary for the construction by the Redeveloper of the Minimum Improvements.
"State" means the state of Minnesota.
"Tax Increment" means that portion of the real property taxes that is paid with respect to the
Redevelopment Propeliy and that is remitted to the Authority as lax increment pursuant to the Tax
Increment Act.
25XO('9(JAI-::)
MNI90-IIX
3
.
.
.
"Tax Increment Act" or "'rIF Act" means the Tax Increment Financing Act, Milmesota
Statutes Sections 469.174 to 469.179, as amended.
"Tax Increment District" or "TIF District" means Tax Increment Financing District No. 1-
33, an economic devclopment tax increment financing district crcated by the City and the Authority.
"Tax Increment Plan" or "TIF Plan" means the Authority's 'fax Increment Financing Plan
fur the TIF District, as approved on February 2, 2005, and as it may be amended.
"Tax Official" means any County assessor, County auditor, County or State board of
equalization, the commissioner ofrevenue of the State, or any State or federal district court, the tax
court of the State, or the State Supreme Court.
"Tcnant" mcans Strategic Equipmcnt and Supply Corporation, a Delaware corporation, or
its permitted successors and assigns.
"Transfer" has the meaning set forth in Section 8.2(a) hereof.
"Unavoidable Delays" means delays beyond the reasonable control of the party seeking to
be excused as a result thereof which are the direct result of strikes, other labor troubles, prolonged
adverse weather or acts of God, fire or other casualty to the Minimum Improvements, litigation
commenced by third parties which, by injunction or other similar judicial action, directly results in
delays, or acts of any federal, state or local governmental unit (other than the Authority or City in
exercising their rights under this Agreement), including without limitation condemnation or threat
of condemnation of any portion of the Redevelopment Property, which directly result in delays.
Unavoidable Delays shall not include delays experienced by the Redeveloper in obtaining permits
or governmental approvals necessary to enable construction of the Minimum Improvements by the
datcs such construction is rcquired under Section 4.3 of this Agreement, so long as the Construction
Plans have been approved in accordance with Section 4.2 hereof.
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ARTICLE II
Representations and Warranties
Section 2.1. Representations by the Authority. (a) The Authority is a housing and
redevelopment authority duly organized and existing under the laws of the State. Under the
provisions of the Act and the HRA Act, the Authority has the power to enter into this Agreement
and carry out its obligations hereunder.
(b) The Authority will use its best efforts to facilitate development of the Minimum
Improvements, including but not limited to cooperating with the Redeveloper in obtaining nccessary
administrative and land use approvals and construction financing pursuant to Section 7.1 hereof.
(c) The Authority will issue the Note, subject to all the terms and conditions of this
Agreement.
(d) The actIvItIes of the Authority are undertaken for the purpose of fostering the
redevelopment of certain real property that is underutilized, which will revitalize this portion of the
Project Area, increase tax base, and increase employment opportunities.
Section 2.2. Representations and Warranties bv the Redeveloper. The Redeveloper
. represents and warrants that:
(a) The Redcveloper is a limited liability company duly organized and in good standing
under the laws ofthe State, is not in violation of any provisions of its articles of organization, is duly
authorized to transact business within the State, has power to enter into this Agreement and has duly
authorized the exeeution, delivery, and performance of this Agreement.
(b) If the conditions precedent to construction occur, the Redeveloper will construct the
Minimum Improvements in accordance with the terms of this Agreement, the Redevelopment Plan,
and all local, state, and federal laws and regulations (including, but not limited to, environmental,
zoning, building code and public health laws and regulations).
(c) The Redeveloper will use reasonable efforts to secure all pem1its, licenses, and
approvals necessary for construction of the Minimum Improvements.
(d) The Redeveloper has received no noticc or communication from any local, state or
federal official that the activities of the Redeveloper or the Authority in the Project Area may be or
will be in violation of any envi ronmcntal law or regulation (other than those notices or
communications of which the Authority is aware). The Redeveloper is aware of no facts the
existence of which would cause it to be in violation of or give any person a valid claim under any
local, statc or fcderal environmental law, regulation or revicw procedure.
.
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(e) The Redeveloper will cause constmction of the Minimum Improvements 111
accordance with all local, state or federal energy-conservation laws or regulations.
(1) Neither the execution and delivery of this Agreement, the consummation of the
transactions contemplated hereby, nor the fulfillment of or compliance with the ten11S and
conditions of this Agreement is prevented, limited by or conflicts with or results in a breach ot~ the
tel111S, conditions or provisions of any corporate restriction or any evidcnces of indebtedness,
agreement or instrument of whatever naturc to which the Redeveloper is now a party or hy which it
is bound, or constitutes a default under any of thc Joregoing.
(g) The Redeveloper has or will enter into a leasc with a tel111 of at least five years with
the Tenant and pursuant to this lease, the Tenant will occupy the Minimwn Improvements. The
Redeveloper will pay all property taxes owing on the Redevelopment Property.
(h) The proposed development by the Redeveloper hereunder would not oceur but for
the tax increment financing assistance being provided by the Authority hereunder.
.
(i) Whenever any Event of Default occurs and if the Authority shall employ attorneys
or incur other expenses for the collection of payments due or to become due or for the enforcement
of performance or observance of any obligation or agreement on the part of the Redeveloper under
this Agreemcnt, and the Authority prevails in such action, the Redeveloper agrees that it shall,
within ten days of written demand by the Authority, pay to the Authority the rcasonable fees of such
attorneys and such other expenses so incurred by the Authority.
(j) The Redeveloper shall promptly advise Authority in wfltmg of all litigation or
claims affecting any part of the Minimum Improvements and all written complaints and charges
made by any governmental authority materially affecting thc Minimum Improvements or materially
affecting the Rcdeveloper or its business which may delay or require changes in eonstruetion of the
Minimum Improvements.
(k) The Redeveloper did not obtain a building pel111it for any improvements to the
Redevelopment Property prior to the date of approval of the TIF Plan.
Section 2.3. Representations and Warranties by the Tenant. The Tenant represents and
warrants that:
(a) The Tenant is a corporation duly organized and in good standing under the laws of
the State, is not in violation of any provisions of its articles of incorporation or bylaws, is duly
authorized to transact business within the State, has power to enter into this Agreement and has duly
authorized thc execution, delivery, and perJormance of this Agreement.
-
(b) Thc Tenant has or will enter into a lease with a term of at least five years with the
Redeveloper and pursuant to this lease, the Tenant will occupy the Minimum Improvements. In
return for favorable eonditions in the lease, the Tenant has agrced to comply with Section 3.4
hereof.
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The Tenant will create the jobs at the wages required pursuant to Section 3.4 hereof.
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7
ARTICLE III
.
Propcrtv Acquisition
Section 3.1. Status of Redevelopment Prope11v. As of the date of this Agreement, the
Redeveloper has entered into a purchase agreement to acquire the Redevelopment Property (the
"Purchase Agreement"). The Authority has no obligation to acquire the Redevelopment Property.
.
Section 3.2. Environmental Conditions. (a) For purposes of this Section, the following
terms will have the indicated definitions. "Law or Regulation" means and includes the
Comprehensive Enviromnental Response, Compensation and Liability Act ("CERCLA" or the
Federal Superfund Act) as amended hy the Superfund Amendments and Reauthorization Act of
1986 ("SARA") 42 U.S.c. 999601-9675; the Federal Resource Conservation and Recovery Act of
1986 ("RCRA"); the Mimlesota Enviromnental Response and Liability Act ("MERLA") Minnesota
Statutes, Chapter 115B; the Clean Water Act 33 U.S.C. 99 1321 et seq.; the Minnesota Petroleum
Tank Release Cleanup Act, Minnesota Statutes, Chapter 115C; the Clean Air Act 42 U .S.c.
997401 et seq.; all as the same may be hom time to time amended and any other federal, state,
county, municipal, local or other statute, law, ordinance or regulation which may relate to or deal
with human health, hazardous suhstances or materials or the environment including without
limitation all pursuant to any such statute, law or ordinance. "Hazardous Substance or Materials"
means ashestos, urea formaldehyde, polychlorinated biphenyls, nuclear fuel or materials, chemical
waste radioactive materials, explosives, known carcinogens, petroleum products or other dangerous
or toxic or hazardous pollutant, contaminant, chemical material or other substance defined as
hazardous or as a pollutant or contaminant in, or the release or disposal of which is regulated by,
any Law or Regulation.
(b) The Redeveloper acknowledges that the Authority makes no representations or
warranties as to the condition of the soils or presence or absence of Hazardous Substance or
Materials on the Redevelopment Property (including without limitation the Redevelopment
Property) or the fitness of the Redevelopment Property for construction of the Minimum
Improvements or any other purpose for which the Redeveloper may make use of such property.
(c) Without limiting its obligations under Section 8.3 of this Agreement the Redeveloper
further agrees that it will indemnify, defend, and hold harmless the Authority, the City, and their
goveming body members, officers, and employees, from any claims or actions arising out of the
presence, if any, of Hazardous Wastes and Materials existing on or in the Redevelopment Property.
Nothing in this section will be construed to limit or affect any limitations on liability of the
Authority under State or federal law, including without limitation Minnesota Statutes, Sections
466.04 and 604.02.
Section 3.3. Financing of Site Improvements. (a) In order to make development of the
Minimum Improvements financially feasible, the Authority will reimburse the Redeveloper for a
portion of the cost of the Site Improvements constructed in accordance with Article IV hereof.
To finance such reimbursement, the Authority shall issue and the Redeveloper shall purchase the
Note in the principal amount of $100,000 in substantially the form set forth in the Authorizing
. Resolution attached as Schedule B. The Authority and the Redeveloper agree that the
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consideration from the Redeveloper for the purchase of the Note shall consist of the
Redeveloper's payment of the costs of the Site lmprovemcnt in at least the principal amount of
the Note. The Authority shall dcliver the Notc upon the Redevcloper's having submitted to the
Authority written evidence, in a form satisfactory to the Authority that the Redeveloper has
incurred and paid the costs of the Site Improvcment in at least the principal amount ofthe Note.
(b) The Redevelopcr undcrstands and acknowledges that the Authority makes no
reprcsentations or warranties regarding the amount of Available Tax Increment (as dcfined in the
Notc), or that revenues pledged to the Note will be sufficient to pay the principal of the Note. Any
estimates of Tax Increment prepared by the Authority or its financial advisors in connection with
thc TIF District or this Agreemcnt are for the benefit of the Authority, and are not intended as
rcpresentations on which the Redeveloper may rely.
Section 304. Business Subsidy Agreement. The provisions of this Section constitute the
"business subsidy agreement" for the purposes of the Business Subsidy Act.
(a) General Terms. The Rcdeveloper has or will entcr into a lease with a teD11 of at least
five years with the Tenant and pursuant to this lease, thc Tenant will occupy the Minimum
Improvemcnts. The Redeveloper will pay all property taxes owing on the Redevelopment Property.
In return for favorable conditions in the lease, the Tcnant will provide the jobs and wages required
by this Scction. The parties agrce and rcpresent to each other as follows:
.
(i) The subsidy provided to the Redcveloper consists of payments on the Note,
which payments reprcsent a forgivable loan that is repayable by the Redcveloper in
accordance with this Section. The Note is payable from a pClltion of the Tax Increments
from the TIF District, an economic dcvelopment tax incrcment financing district.
(ii) 'fhe public purposes of the subsidy are to provide employment opportunities and
increase the tax base of the City and thc Statc.
(iii) The goals for the subsidy are: to secure development of thc Minimum
Improvements on the Redevelopment Property; to maintain such improvements as a
distribution facility for the time period described in clause (vi) below; and to create the jobs
and wage levels in accordancc with Section 3A(b) hereof.
(iv) If the goals described in clause (iii) are not met, the Redeveloper must make the
paymcnts to the Authority described in Section 3A(c).
(v) The subsidy is needed to induce the Redeveloper to continue its business at this
site, induce the Tenant to relocate its operations to this site, and to mitigate the cost of Site
Improvements, all as dctemlincd by the Authority upon approval of the TIF Plan.
.
(vi) The Redeveloper must continue operation of thc Minimum Tmprovements as a
distribution, warehousc or manufacturing facility (a "Qualified Facility") through the
Maturity Date. The improvements will be a Qualified Facility as long as either (a) the
Minimum Improvements are leased to the Tenant, who operates a distribution facility, (b)
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any successor tenant leases the property and operates a distribution, warehouse or
manufacturing business, or (c) the Redeveloper directly occupies the property as a
distribution, warehouse or manufacturing business. During any period while the Minimum
Improvements are vacant and not operated as a distribution, warehouse or manufacturing
facility, the Minimum Improvements will not constitute a Qualified Facility,
...--.
(vii) The Redeveloper does not have a parent corporation,
(viii) In addition to the tax increment financing, the Redeveloper expects to
receive a loan through the Monticello Economic Development Authority (the "ED A") in
the cstimated amount of $200,000, This loan will also constitute a business subsidy
under the Busincss Subsidy Act. Thc EDA and Redcveloper will enter into a separate
business subsidy agreemcnt related to the loan.
(ix) The fair market value of the subsidy provided to the Redeveloper IS
$] 00,000, the principal amount of the Note.
(b) Job and Wage Goals. Within two years after substantial completion of the Minimum
Improvements (the "Compliance Date"), the Tcnant shall cause to be created at least 40 full~time
equivalent jobs on the Redevelopment Property and shall cause the wages for all employees on the
Redevelopment Property to be no less than amounts shown in the table below, exclusive of benefits,
Full- Time Equivalent Jobs
Hourly Wagc
,
8
5
5
2
$12.00
$14,00
$16,00
$18,00
$20,00
$22.00
"
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Jobs created by the Redeveloper or other tenants within the Minimum Improvcments will count
toward the requiremcnts of this Section, Notwithstanding anything to the contrary herein, if thc
wage and job goals described in this paragraph are met by the Compliance Datc, those goals are
deemed satisfied despite the Redeveloper's continuing obligations under Sections 3A(a)(vi) and
3A(d). The Authority may, after a public hearing, extcnd the Compliance Date by up to one year,
provided that nothing in this section wi II be construed to Jimi t the Authority's legislative discretion
regarding this matter.
(c) Remedies. If the Redeveloper fails to meet the goals described in Section 3 A(a)(iii), the
Redeveloper shall repay to the Authority upon written demand from the Authority a "pro rata share"
of the amount of any Note payments madc to the Redeveloper together with interest on that amount
at the implicit price deflator as defined in Section 1161994, Subdivision 6 of the Business
Subsidy Act accrued from the date of substantial completion of the Minimum Improvements to the
date of payment. The teml "pro rata share" means percentages calculated as follows:
,-~--.....
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(i) if the failure relates to the number ofjohs, the jobs required less the jobs created,
divided by the jobs required;
(ii) if the failure relates to wages, the number of jobs required less the number of
jobs that meet the required wages, divided by the number of jobs required;
(iii) if the failure relates to maintenance of the facility as a Qualified Facility in
accordance with Section 3.4(a)(vi), 60 less the number of months of operation as a Qualified
Facility (where any month in which the Qualified Facility is in operation for at least IS days
constitutes a month of operation), commencing on the date of substantial completion and
ending with the date the Qualified Facility ceases operation as detemlined by the Authority
Representative, divided by 60; and
(iv) if more than one of clauses (i) through (iii) apply, the sum of the applicable
percentages, not to exceed 100%.
Nothing in this Section shall he construed to limit the Authority's remedies under Article IX
hereof. In addition to the remedy described in this Section and any other remedy availahle to the
Authority for failure to meet the goals stated in Section 3.4(a)(iii), the Redeveloper agrees and
understands that it may not a receive a business subsidy from the Authority or any grantor (as
defincd in the Business Subsidy Act) for a period of five years from the date of the failure or until
the Redeveloper satisfies its repayment obligation under this Section, whichever occurs first.
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(d) Reports. Thc Redeveloper must submit to the Authority a written report regarding
business suhsidy goals and results by no later than March I of each year, commencing March 1,
2006 and continuing until the later of (i) the date the goals stated Section 3.4(a)(iii) are met; (ii) 30
days after expiration of the period described in Section 3.4(a)(vi); or (iii) ifthe goals are not met, the
date the subsidy is repaid in accordance with Section 3.4(c). The report must comply with Section
116J.994, Subdivision 7 of the Business Subsidy Act. 'I'he Authority will provide infornlation to the
Redeveloper regarding the required forms. If the Redeveloper fails to timely file any report required
under this Section, the Authority will mail the Redeveloper a warning within one week after the
required filing date. If, after 14 days ofthe postmarked date ofthe warning, the Redeveloper fails to
provide a report, the Redeveloper must pay to the Authority a penalty of $100 for each subsequent
day until the report is filed. The maximum aggregate penalty payable under this Section is $1,000.
(e) Nature of' Obligation. Thc parties agree and understand that the Tenant will lease the
Minimum Improvements, operate a distribution facility, and create the jobs required under this
Section. Nevertheless, the obligations under this Section are a joint and several liability of
Redeveloper.
Section 3.5. Pavment of Administrative Costs. TheR.edeveloper agrees that it will pay
upon demand by the Authority, Administrative Costs (as hereafter defined). For the purposes of this
Agreement. the term "Administrative Costs" means out-of-pockct costs incuned by the Authority
and attributable to or incuncd in connection with the negotiation and preparation of this Agreement
and other documents and agreements in cOJU1cction with the development contemplated hereundcr.
. Out-of-pocket Administrative Costs shall he evidenced by invoices, statements, or other reasonable
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written evidence of the costs incuned by the Authority. As of the date of this Agreement, the
Redeveloper has deposited $7,500 with the Authority to be applied toward Administrative Costs.
The amount hy which this deposit exceeds the Authority's actual Administrative Costs, if any, shall,
upon demand by the Redeveloper, he returned to the Redeveloper, but no earlier than the date on
which the Redeveloper receives a Ccrtifieate of Completion pursuant to Section 4.4 of this
Agreement. As of the date of this Agreement, Administrative Costs are estimated to total
approximately $10,000, but the Authority makes no warranty that actual Administrative Costs will
not be more or less than this amount. This Seetion 3.5 shall survive any tem1ination of this
Agreement for any reason.
Section 3.6. Reeords. The Authority and its representatives shall have the right at all
reasonable times alter reasonable notice to inspect, examine, and copy all books and records of the
Redeveloper relating to the Minimum Improvements and the Redevelopment Property.
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ARTICLE IV
Construction of Minimum Improvements
Section 4. I. Construction of Improvements. The Redeveloper agrees that it will construct
or eause constmction of the Minimum Improvements on the Redevelopment Property in accordance
with the approved Construction Plans and that it will, during any pcriod while the Redeveloper
retains ownership of any portion of the Minimum Improvements, operate and maintain, prcserve
and keep the Minimum Improvements or cause the Minimum Improvements to he maintained,
preserved and kept with the appurtenances and every part and parcel thcreo(in good repair and
condition.
Section 4.2. Construction Plans. (a) Before commencing constmction of the Minimmn
Improvements, the Redeveloper shall submit to the Chief Building Official for the City (thc "Chief
Building Official") Construction Plans for the Minimum Improvements. The Construction Plans
shall provide for the construction of the Minimum Improvcments and shall be in conformity with
this Agreement, the Redevelopment Plan, and all applicable State and local laws and regulations.
'fhe Chief Building Official, acting on behalf of the Authority, will approve the Construction Plans
in writing if (i) the Construction Plans conform to all terms and conditions of this Agrecment;
(ii) the Construction Plans conform to the goals and ol~jectives of the Redevelopment Plan; (iii) the
Construction Plans confonn to all applicable federal, state and local laws, ordinances, rules, and
regulations; (iv) the Construction Plans are adequate to provide for construction of the Minimum
Improvements; (v) the Construetion Plans do not provide for expenditures in excess of the funds
available to the Redeveloper for construction of the Minimum Improvements; and (vi) no Event of
Dcfault has OCCUlTed. No approval by the Chief Building Omcial shall relieve the Redeveloper of
the obligation to comply with the terms of this Agreement, applicable fcderal, statc and local laws,
ordinances, rules and regulations, or to construct the Minimum Improvements in accordance
therewith. No approval by thc Chief Building Official shall constitute a waiver of an Event of
Default. If approval of the Construction Plans is requested by the Redeveloper in writing at the time
of submission, such Construction Plans shall be deemed approved unless rejected in writing by the
Chief Building Official, in whole or in part. Such rejections shall set forth in detail the reasons
therefore, and shall be made within 20 days after the date of receipt of final plans from the
Redeveloper. If the Chief Building Official rejects any Construction Plans in whole or in part, the
Redeveloper shall submit new or cOlTccted Construction Plans within 20 days after written
notitlcation to the Redeveloper of the rejcction. The provisions of this Section relating to approval,
rejection and resubmission of corrected Construction Plans shall continue to apply until the
Construction Plans have been approved by the Chief Building OiIicial. The Chief Building
Official's approval shall not be unreasonably withheld. Said approval shall constitute a conclusive
determination that the Construction Plans (and the Minimum Improvements, constructcd in
accordance with said plans) comply to the Chief Building Official's satisfaction with the provisions
of this Agreement relating thereto.
T"he Redevelopcr hereby waives any and all claims and causes of action whatsoever
resulting from the review of the Construction Plans by the ChiC[ Building Official, on behalf of the
Authority and/or any changes in the Construction Plans requested by the Chief Building OiTicial on
behalf of the Authority. Neither the Authority, the City, nor any employee or official of the
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Authority or City shall be responsible in any manner whatsoever for any defect in the Construction
Plans or in any work done pursuant to the Construction Plans, including changes requested by the
Chief Building Official on behalf of the Authority.
(b) If the Redeveloper desires to make any material change in the Construction Plans or
any component thereof after their approval hy the Chief Building Official, the Redeveloper shall
submit the proposed change to the Chief Building Official for approval. For the purpose of this
section, the term "material" means changes that increase or decrease construction costs by $100,000
or more. If the Construction Plans, as modified by the proposed change, conform to the
requirements of this Section 4.2 of this Agreement with respect to such previously approved
Construction Plans, the Chief Building OHicial shall approve the proposed change and notify thc
Redeveloper in writing of the approval. Such change in the Construction Plans shall, in cmy event,
be deemed approved by the Chief Building Official unless rejected, in whole or in part, by written
notice by the Chief Building OHicial to the Redcveloper, setting forth in detail the rcasons therefor.
Such rejection shall be made within 10 days after receipt of the notice of such change. Approval of
any such change in the Construction Plans will not be unreasonably withheld.
.
Section 4.3. Commenccment and Completion of Construction. Subject to Unavoidable
Delays, the Redeveloper shall commence construction of the Minimum Improvements by July 30,
2005. Subject to Unavoidable Delays, the Redeveloper shall complete the construction of the
Minimum Improvements by December 31, 2005. All work with respect to the MinimlUll
Improvements to be constructed or provided by the Redeveloper on the Redevelopment Property
shall be in conformity with the Construction Plans as submitted by the Redeveloper and approved
by the Chief Building Official on behalf of the Authority.
The Redeveloper agrees for itself, its successors, and assigns, and every successor in interest
to the Redevelopment Property, or any part thereot~ that the Redeveloper, and such successors and
assigns, shall promptly begin and diligently prosecute to completion the development of the
Redevelopment Property through the construction of the Minimum Improvements thereon, and that
such construction shall in any event be commenced and completed within the period specified in
this Section 4.3 of this Agreement. After the date of this Agreement and until construction of the
Minimum Improvements has been completed, the Redeveloper shall make reports, in such detail
and at such times as may reasonably be requested by the Authority, but no more than monthly, as to
the actual progress of the Redeveloper with respect to such construction
Section 4.4. Certificate of Completion. (a) Promptly after completion of the Minimum
Improvements in accordance with those provisions of the Agreement relating solely to the
obligations of the Redeveloper to construct the Minimum Improvements (including the dates for
beginning and completion thereof), the Authority Representative will furnish the Redeveloper with
a Certificate shown as Schedule C.
.
(b) If the Authority Representative shall refuse or fail to provide any celiification in
accordance with the provisions of this Section 4.4 of this Agreement, the Authority Representative
shalL within 30 days aftcr written request by the Redeveloper, provide the Redeveloper with a
written statement, indicating in adequate detail in what respects the Redeveloper has failed to
complete thc Minimum Improvements in accordance with thc provisions of the Agreement, or is
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otherwise in default, and what measures or acts it will be necessary, in the opinion of the Authority,
for the Redeveloper to take or perform in order to ohtain such certification.
(c) The construction the Minimum Improvements shall be deemed to he complcte upon
a detennination by the Authority Represcntative that aU Minimum Improvemcnts on the
Redevelopment Property have been substantially completed in accordance with approved
Construction Plans.
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ARTICLE V
Insurance
Section 5.1. Insurance. (a) The Redeveloper will provide and maintain at all times during
the process of constructing the Minimum Improvements an All Risk Broad Fornl Basis Insurance
Policy and, from time to time during that period, at the request of the Authority, furnish the
Authority with proof of payment of premiums on policies covering the following:
(i) Builder's risk insurance, written on the so-called "Builder's Risk n
Completed Value Basis," in an amount equal to 1 00% of the principal amount of the Bonds,
and with coverage available in nonreporting fonn on the so-called "all risk" form of policy.
The interest of the Authority shall be protected in accordance with a clause in form and
content satisfactory to the Authority;
(ii) Comprehensive general liability insurance (including operations, contingent
liability, operations of subcontractors, completed operations, and contractual liahility
insurance) together with an Owner's Protective Liability Policy with limits against bodily
injury and property damage of not less than $1,000,000 for each occurrence (to accomplish
the above-required limits, an umbrella excess liability policy may be used). The Authority
shall be listed as an additional insured on the policy; and
(iii) Workers' compensation insurance, with statutory coverage, provided that the
Redeveloper may be self-insured with respect to all or any part of its liability for workers'
compensation.
(b) Upon completion of construction of the Minimum Improvements and prior to the
Maturity Date, the Redeveloper shall maintain, or cause to be maintained, at its cost and expense,
and from time to time at the request of the Authority shall furnish proof of the payment of premiums
on, insurance as follows:
(i) Insurance against loss and/or damage to the Minimum Improvements under
a policy or policies covering such risks as are ordinarily insured against by similar
businesses.
(ii) Comprehensive general public liahility insurance, including personal injury
liability (with employee exclusion deleted), against liability for injuries to persons and/or
prope11y, in the minimum amount for each occurrence and [or each year of $1 ,000,000, and
shall be endorsed to show the City and Authority as additional insureds.
(iii) Such other insurance, including workers' compensation insurance respecting
all employees of the Redeveloper, in such amount as is customarily carried by like
organizations engaged in like activities of comparable size and liability exposure; provided
that the Redeveloper may be self-insured with respect to all or any part of its liability for
workers' compensation.
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(c) A II insurance required in Article V of this Agreement shall be taken out and
maintained in responsihle insurance companies selected by the Redeveloper that are authorized
under the laws of the State to assumc the risks covered thereby. Upon request. the Redeveloper will
deposit almually with the Authority policies evidencing all such insurance, or a cel1ificate or
cel1ificates or binders of the respective insurers stating that such insurance is in force and effect.
Unless otherwise provided in this Article V of this Agreement each policy shall contain a provision
that the insurer shall not cancel nor modify it in such a way as to reduce the coverage provided
below the amounts required herein without giving written notice to the Redeveloper and thc
Authority at least 30 days before the eancellation or modification becomes effective. In lieu of
separate policies, the Redeveloper may maintain a single policy, blanket or umbrella policies, or a
combination thereof: having the coverage rcquired herein, in which event the Redevelopcr shall
deposit with the Authority a certificate or certificates of the respective insurers as to the amount of
coverage in force upon the Minimum Improvements.
(d) The Redeveloper agrees to notify the Authority immediately in the case of damage
exceeding $100,000 in amount to, or destruction of, the Minimum Improvcments or any portion
thereof resulting from fire or other casualty. In such event the Redeveloper will forthwith repair,
reconstruct, and restore the Minimwll Improvements to substantially the samc or an improved
condition or value as it existed prior to the event causing such damage and, to the extent necessary
to accomplish such repair, reconstruction, and restoration, the Redeveloper will apply the net
proceeds of allY insurance relating to such damage received by the Redeveloper to the payment or
rcimbursement of the costs thereof.
The Redeveloper shall complete the repair, reconstruction and restoration of the Minimum
Improvements, regardless of whether the net proceeds of insurance received by the Redeveloper for
such purposes are su11lcient to pay for the same. Any net proceeds remaining ailer completion of
such repairs, construction, and restoration shall be the propcrty ofthc Redcvcloper.
(e) In lieu of its obligation to reconstruct thc Minimum Improvements as set forth in this
Section, the Redeveloper shall have the option of: (i) paying to the Authority an amount that, in the
opinion of the Authority and its fiscal consultant, is su11lcient to payor redeem the outstanding
principal and accrued interest on the Note, or (ii) so long as the Redeveloper is the owner of the
Note, waiving its right to receive subsequent payments under the Note.
(f) The Redcvclopcr and the Authority agrec that all of the insurance provisions set
forth in this Article V shall terminate upon the termination of this Agreement.
Section 5.2. Subordination. Notwithstanding anything to the contrary hcrein, the rights of
the Authority with respcct to the receipt and application of any insurance proceeds shall, in all
respccts, be subordinate and subject to the rights of any Holder un dcI' a Mortgage allowcd pursuant
to Article VIl of this Agreement.
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ARTICLE VI
Tax Increment; Taxes
Section 6.1. Right to Collect Delinquent Taxes. The Redeveloper acknowledges that the
Authority is providing substatltial aid and assistance in furtherance of the development through
reimbursement of land acquisition costs. The Redevelopcr understands that thc Tax Increments
pledged to payment on the Note are derived from real cstate taxes on the Redcvelopment PrOpetiy,
which taxes must be promptly and timely paid. To that end, the Redeveloper agrees for itseH~ its
successors and assigns, in addition to the obligation pursuant to statute to pay real estate taxes, that
it is also obligated by reason of this Agreement to pay before delinquency all real estate taxes
assessee! against the Rcdevelopment Property and the Minimum Improvements. The Redevelopcr
acknowledges that this obligation creates a contractual right on behalf of the Authority to sue the
Redeveloper or its successors and assigns to collect delinquent real estate taxes and any penalty or
interest thereon and to pay over the same as a tax payment to the county auditor. In any sueh suit,
the Authority shall also be entitled to recover its costs, expenses and reasonable attorney fees.
Section 6.2. Review of Taxes. The Redeveloper agrees that prior to the Maturity Date it
will not cause a reduction in the real propeliy taxes paid in respect of thc Redevelopment Property
through: (A) willful destruction of the Redevelopment Propeliy or any part thereof; or (B) willful
rcfusal to reconstruct damaged or destroyed property pursuant to Section 5.1 of this Agreement,
except as provided in Section 5.1 (e), (C) subject to Section 6.3, apply for a deferral or abatement of
propetiy tax on thc Redevelopment Propeliy pursuant to any law; or (D) conveyor transfcr or" allow
conveyance or transfer of the Redevclopment Property to any entity that is exempt from payment of
real property taxes under State law.
Section 6.3. Covenant Not to Petition. Prior to the Maturity Date, the Redeveloper agrecs
not to filc any petition or claim with any Tax Official, seeking to reduce the market value of the
Redcvelopment Property and the Minimum Improvemcnts J()r ad valorem tax purposes helow a
minimmn value of $2,621,900. Nothing in this section is intended to constitute a minimum
assessment agreement within the meaning of Section 469.] 77, Subdivision 8 of the TIP Aet.
However, failure by the Redeveloper to comply with this Section is an Event of Default under this
Agreemcnt entitling the Authority to the rcmedies described in Article IX hereof.
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ARTICLE VII
Other Financim:!
Section 7.1. Generally. Before issuance of the Note, the Redeveloper shall submit to the
Authority or provide access thereto for review by Authority staff, consultants, and agents, evidence
reasonably satisfactory to the Authority that the Redeveloper has available funds, or commitments
to obtain funds, whether in the nature of mortgage financing, equity, grants, loans, or other sources
sufficient for paying the cost of the developing the Minimum Improvements, provided that any
lender or grantor commitmcnts shall be subject only to such conditions as are normal and customary
in the conm1erciallending industry.
Section 7.2. Authority's Option to Cure Default on Mortgage. In the event that any portion
of the Redeveloper's funds is provided through mortgage financing, and there occurs a default under
any Mortgage authorized pursuant to this Article Vll of this Agreement, the Redeveloper shall
cause the Authority to receive copies of any notice of default rcceived by the Redeveloper from thc
holder of such Mortgage. Thereafter, the Authority shall have the right, but not the obligation, to
cure any such default on bchalf of the Redeveloper within such cure periods as arc available to the
Rcdeveloper under the Mortgagc documcnts.
Section 7.3. Modification; Subordination. If the Redeveloper requires mortgage financing
for the development of the Minimum Improvements, the Authority agrees to subordinate its rights
under this Agreement to the Holder of any Mortgage securing construction or pennanent iinancing,
in accordance with the terms of a subordination agreement substantially in the f{mn attached as
Schedule D, or such other form as the Authority approves.
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ARTICLE VIII
Prohihitions Aeainst Assienment and Transfer; Indemnification
Section 8.1. Representation as to Development. The Redeveloper represents and agrees
that its purchase of the Redevelopment Property, and its other undertakings pursuant to the
Agreement, are, and will be used, for the purpose of development of the Redevelopment Property
and not fc)r speculation in land holding.
Seetion 8.2. Prohibition Against Redeveloper's Transfer of Property and Assigm11ent of
Agreement. The Redeveloper represents and agrees that prior to issuance of a Certificate of
Completion for all of the Minimum Improvements:
(a) Except only by way of security for, and only for, thc purpose of obtaining financing
necessary to enable the Redeveloper or any successor in interest to the Redevelopment Property, or
any part thereof, to perform its obligations with respect to undertaking the redevelopment
contemplated LInder this Agreement, and any other purpose authorized by this Agreement, the
Redeveloper has not made or created and will not make or create or suffer to be made or created any
total or partial sale, assignment, conveyance, or lease, or any trust or power, or transfer in any other
mode or fonn of or with respect to this Agreement or the Redevelopment Property or any part
thereof or any interest therein, or any contract or agreement to do any of the same, to any person or
entity whether or not related in any way to the Redeveloper (collectively, a "Transfer"), without the
prior written approval of the Authority (whose approval will not be unreasonably withheld, subject
to the standards described in paragraph (b) of this Section) unless the Redeveloper remains liable
and bound by this Redevelopment Agreement in which event the Authority's approval is not
required. Any such Transfer shall be subject to the provisions of this Agreement. For the purposes
of this Agreement, the term Transfer does not include acquisition of a controlling interest in the
Redeveloper by another entity or merger of the Redeveloper with another entity. The parties
acknowledge that Redeveloper intends to lease the Minimum Improvements to the Tenant, which
lease is hereby approved, provided that the Redeveloper remains obligated under this Agreement.
(b) In the event the Redeveloper, upon Transfer of the Redevelopment Property or any
portion thereof either before or after issuance of the final Certiiicate of Completion, seeks to be
released from its obligations under this Redevelopment Agreement as to the portions of the
Redevelopment Property that is transferred, the Authority shall be entitled to require, except as
otherwise provided in the Agreemcnt, as conditions to any such release that:
(i) Any proposed transferee shall have the qualifications and financial
responsibility, in the reasonable judgment of the Authority, necessary and adequate to fulfill
the obligations undertaken in this Agreement by thc Redeveloper as to the portion of the
Redevelopmcnt Property to be transferred.
(ii) Any proposed transferee, by instrument in wntll1g satisi~lctory to the
Authority and in form recordable in the public land records of' Wright County, Minnesota,
shall, for itself and its successors and assigns, and cxpressly for the benefit of the Authority,
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have expressly assumed all of the obligations of the Redevcloper under this Agreement as to
the pOliion of the Redevelopment Propeliy to be transferred and agreed to be subject to all
the conditions and restrictions to which the Redeveloper is subject as to such portion;
provided, however, that the fact that any transferee of, or any other successor in interest
whatsoever to, the Redevelopment Property, or any part thereof, shall not, for whatever
reason, have assumed such obligations or so agreed, and shall not (unless and only to the
extent otherwise specifieally provided in this Agreement or agreed to in writing by the
Authority) deprive the Authority of any rights or remedies or controls with respect to the
Redevelopment Propeliy, the Minimum Improvements or any part thereof or the
construction of the Minimum Improvements; it being the intent of the parties as expressed in
this Agreemcnt that (to the fullest extent permitted at law and in equity and excepting only
in the manner and to the extent specifically provided otherwise in this Agreement) no
transfer oC or change with respect to, ownership in the Redevelopment Property or any part
thereof: or any interest therein, however eonsummated or occurring, and whether voluntary
or involuntary, shall operate, legally, or praetically, to deprive or limit the Authority of or
with respect to any rights or remedies on controls provided in or resulting from this
Agreement with respect to the Redevelopment Property that the Authority would have had,
had there been no such transfer or change. In the absence of speeillc written agrcement by
the Authority to the contrary, no such transfer or approval by the Authority thereof shall be
deemed to relieve the Redeveloper, or any other party bound in any way by this Agreement
or otherwise with respect to thc Redevelopment Property, from any of its obligations with
respect thereto.
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(iii) Any and all instnnnents and other legal documents involved in effecting the
transfer of any interest in this Agreement or the Redevelopment Property governed by this
Article VIII, shall be in a form reasonably satisfactory to the Authority.
In the event the foregoing conditions are satislled then the Redeveloper shall be released from its
obligation under this Agreement as to the portion of the Redevelopment Property that is transferred,
assigned, or otherwise conveyed.
After issuance of the Certifieate of Completion for the Minimum Improvements, the
Developer may transfer or assign any portion of the Development Property or the Dcveloper's
interest in this Agreement without the prior written consent of the Authority, provided that the
transferce or assignee is bound by all the Developer's obligations hercunder. The Developer shall
submit to the Authority written evidence of any such transfer or assignment, ineluding the transferee
or assignee's express assumption of the Developer's obligations under this Agreement. If the
Developer fails to provide such evidence of transfer and assumption, the Developer shall remam
hound by all it obligations under this Agreement.
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Section 8.3. Release and Indemnification Covenants. (a) Except for any willful
misrepresentation or any willful or wanton misconduct or negligence of the Indemnified Parties
as hereinafter defined, and except for any breach by any of the Indcmnified Parties of their
obligations under this Agreement, the Redeveloper releases from and covenants and agrees that the
Authority, the City, and the governing body members, ofliccrs, agents, servants, and employees
thereof (the "Indemnifi.ed Parties") shall not be liable f()r and agrces to indemnify and hold harmless
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the Indemnified Partics against any loss or damage to property or any injury to or death of any
person occurring at or about or resulting from any defect in the Redevelopment Property or the
Minimum Improvements.
(b) Except for ,my willful misrepresentation or any willful or wanton misconduct or
negligence of the Indemnified Parties, and exccpt for any breach by any of the Indemnified Pat1ies
of their obligations under this Agreement, the Redevelopcr agrees to protect and defend thc
Indcmnificd Parties, now and forever, and further agrees to hold the aforesaid harnllcss from any
elaim, demand, suit, action, or other proceeding whatsoever by any pcrson or entity whatsoever
arising or purportedly arising from this Agrcement, or the transactions contemplated hereby or the
acquisition, construction, installation, ownership, maintenance, and operation of the Redevelopment
Property.
(c) Except for any willful misrepresentation or any wilIful or wanton misconduct or
negligence of the Indemnified Parties as hereinafter defined, and except for any breach by any of
the Indemnified Parties of their obligations under this Agreement, the Indemnified Parties shall
not be liable for any damage or injury to the persons or property of thcRedevelopcr or its officers,
agents, servants, or employees or any other person who may be about the Redevelopment Property
or Minimum Improvements.
(d) All covenants, stipulations, promises, agrecments and obligations of the Authority
contained herein shall be deemed to be the covenants, stipulations, promises, agreements, and
obligations of such cntity and not of any governing body member, officer, agent, servant, or
. employec of such entities in the individual capacity thereof.
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ARTICLE IX
Events of Default
Section 9. I. Events of Default Defined. The following shall be "Events of Default" under
this Agreement and the telTIl "Event of Default" shall mean, whenever it is used in this Agreement,
anyone or more of the following events, after the non-defaulting party provides 30 days written
notice to the defaulting pm1y of the event, but only if the event has not been cured within said 30
days or, if the event is by its nature incurable within 30 days, the defaulting party does not, within
such 30-day period, provide assurances reasonably satisfactory to the pat1y providing notice of
default that the event will be cured and will be cured as soon as reasonably possible:
(a) Failurc by the Redeveloper, Tenant or Authority to observe or perform any
covenant, condition, obligation, or agreement on its part to be observed or perfolTIled under this
Agreement.
(b) If, before issuance of the cer1ificate of completion for all the Minimum
Improvements, the Redeveloper shall
(i) file any petition in bankruptcy or f(Jr any reorganization, arrangement,
composition, readjustment, liquidation, dissolution, or similar relief under the United States
Bankruptcy Act or under any similar federal or State law; or
(ii)
make an assignment for bencfit of its creditors; or
(iii) admit in writing its inability to pay its debts gencrally as they become due; or
(iv) he adjudicated a bankrupt or insolvent.
Section 9.2. Remedies on Default. Whenever any Event of Default referred to in Scetion
9.1 of this Agreement occurs, the Authority may:
(a) Suspend its performance under the Agreement until it receives assurances that the
defaulting party will cure its default and continue its performance under the Agreement.
(b) Upon a default hy the Redeveloper, the Authority may terminate the Note and this
Agreement.
(c) Take whatever action, including legal, equitable, or administrative action, which
may appear necessary or desirable to collect any payments due under this Agreement or to enforce
performance and observm1ce of any obligation, agreement, or covenant under this Agreement.
Section 9.3. No Remcdy Exclusive. No remcdy herein confened upon or reserved to any
party is intendcd to be exclusive of any other available remedy or remedies. but each and cvery such
remedy shall be cumulative and shall be in addition to every other remedy given under this
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Agrcement or now or hereafter existing at law or in equity or by statute. No delay or omission to
exercise any right or powcr aeeruing upon any default shall impair any such right or power or shall
be construed to be a waiver thereot~ but any such right and power may be exercised from time to
time and as often as may be deemed expedient. To entitle the Authority to exercise any remedy
reserved to it, it shall not be necessary to give notiee, other than such notice as may be required in
this Article IX.
Seetion 9.4. No Additional Waiver Implied by One Waivcr. In the event any agreement
contained in this Agreement should be breached by either party and thereafter waived by the other
pat1y, sueh waiver shall be limited to the partieular breach so waived and shall not be deemed to
waive any other concunent, previous or subsequent breach hereundcr.
Section 9.5. Attorney Fees. Whenever any Event of Deiault occurs and if the Authority
shall employ attol11cys or incur other expenses tor the colleetion of payments due or to become due
or for the enforcemcnt of perflJrmance or observance of any obligation or agreement on thepart of
the Redeveloper under this Agreement, the Redeveloper agrces that it shall, within ] 0 days of
written demand by the Authority, pay to the Authority the reasonable fees of such attorneys and
such other expenses so inculTed by the Authority.
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ARTICLE X
Additional Provisions
Section 10.1. Conflict of Interests; Representatives Not Individually Liable. The Authority
and the Redeveloper, to the best of their respective knowledge, represent and agree that no member,
official, or employee of the Authority shall have any personal interest, direct or indirect, in the
Agreement, nor shaH any such member, oiIicial, or employee participate in any dccision relating to
the Agreement that affects his personal interests or the interests of any corporation, partnership, or
association in which he, directly or indirectly, is intcrested. No member, official, or employee of the
City or Authority shall be personally liable to the Redeveloper, or any successor in intercst, in the
event of any default or breach by the Authority or tor any amount that may become due to the
Redeveloper or successor or on any obligations under the tenns of the Agreement.
Section 10.2. Equal Employment Opportunity. The Redeveloper, few itself and its
successors and assigns, agrees that during the construction of the Minimlilll Improvements provided
Jar in the Agreement it will comply with all applicable federal, state, and local equal employment
and non-discrimination laws and regulations.
Section 10.3. Restrictions on Use. The Redeveloper agrees that until the Maturity Date, thc
Redeveloper, and such successors and assigns, shall devote the Redevelopment Property to the
operation of the Minimum Improvemcnts as a distribution facility within the meaning of Section
469.176, Subdivision 4c, clauses (1), (2) and (7) ofthe TIF Act, and shall not discriminate upon the
basis of race, color, creed, sex or national origin in the sale, lease, or rental or in the use or
occupancy of the Redevelopment Property or any improvements erected or to be erected thereon, or
any part thereof.
Section 10.4. Provisions Not Merged With Deed. None of the provisions of this Agreemcnt
are intended to or shall . be merged by reason of any deed transfening any interest in the
Redevelopment Property and any such deed shaH not be deemed to aJfect or impair the provisions
and covenants of this Agreement.
Scction 10.5. Titles of Articles and Sections. Any titles of the several parts, Articles, and
Sections of the Agreement are inserted for convenience ofreference only and shall be disregarded in
construing or interpreting any of its provisions.
Section 10.6. Notices and Demands. Except as otherwise expressly provided in this
Agreement, a notice, demand, or other communication under the Agreement by either party to the
other shall be sufficiently given or delivcred if it is dispatched by registered or certified mail,
postage prepaid, return receipt requested, or delivered personally, to the following addresses (or to
such other addrcsses as either party may notify the other):
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To Redeveloper:
Tapper's Holdings LLC
Attn: William R. Tapper
3935 Walden Lane
Wayzata, Minnesota 55391
To T cnant:
Strategic Equipment and Supply Corporation
Attn:
To Authority:
Housing and Redevelopment Authority
in and for the City of Monticello
Attn: Executive Director
505 Walnut Avenue, Suite 1
Monticello, Minnesota 55362
Section 10.7. Countcroarts. This Agrcement may be executed 111 any number of
counterparts, each of which shall constitute one and the same instrument.
Section 10.8. Recording. The Authority may record this Agreement and any amendments
thereto with the Wright County recorder. The Redeveloper shall pay all costs for recording. The
Redeveloper's obligations lmder this Agreement are covenants running with the land for the term of
this Agreement enforceable by the Authority against the Redeveloper, its successor and assigns,
and every successor in interest to the Redevelopment Property, or any part thcreof or any interest
therein.
Section 10.9 Amendment. This Agreement may be amended only hy written agreement
approved hy the Authority and the Redeveloper.
Section 10.10. Authority Approvals. Unless othelwise specified, any approval required by
the Authority under this Agreement may be given by the Authority Representative, except that final
approval of issuance of the Notc shall be made hy the Authority's board of commissioners.
Section] 0.1]. Minnesota Law. This Agrecment will be construcd in accordance with the
laws ofthc State, and any claim arising 1rom this Agrecmcnt will be adjudicated in the State.
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IN WITNESS WHEREOF, the Authority, the Redeveloper, and the Tenant have caused this
Agreemcnt to be duly executed by their duly authorized representatives as of the date iirst abovc
written.
HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE
CITY OF MONTICELLO
By
Its Chairperson
By
Its Executive Director
STATE OF MINNESOTA )
) SS.
COUNTY OF WRIGHT )
The foregoing instrument was acknowlcdged before me this _. day of February, 2005 by
_.-.-.~ and ___ ..~._ the Chairperson and Executive Director of
the Housing and Redevelopmcnt Authority in and J(Jr the City of Monticello, on behalf of the
Authority.
Notary Public
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TAPPER'S HOLDINGS LLC
as Redeveloper
By
By
STATE OF MINNESOTA )
) SS.
COUNTY OF WRIGHT )
'rhe foregoing instrument was acknowledged before me this _ day of February, 2005,
by Tapper' sHoldings LLC, a Minnesota limited liability company, on behalf of the Redeveloper.
Notary Public
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STRATEGIC EQUIPMENT AND SUPPLY
CORPORATION,
as 'fenant
By ~__
Its
STATE OF MINNESCrrA )
) SS.
COUNTY OF WRIGHf )
The foregoing instrument was aeknowledged before me this _~..__ day of February, 2005,
by __ ..' the of Strategic Equipment and Supply
Corporation, a Delaware corporation, on behalf of the eorporation.
Notary Public
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SCHEDULE A
REDEVELOPMENT PROPERTY
PID # ]55-018-002120
Lot 12, Block 002, Oakwood Industrial Park, City of Monticello
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HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO
RESOLlJTION NO.
RESOLUTION APPROVING CONTRACT FOR PRIVATE
REDEVELOPMENT WITH TAPPER'S HOLDINGS LLC
AND A WARDING THE SALE OF, AND PROVIDING THE
FORM, TERMS, COVENANTS AND DIRECTIONS FOR
THE ISSUANCE OF ITS $100,000 TAX INCREMENT
REVENlJE NOTE, SERIES 2005
BE IT RESOLVED BY the Board of Commissioners ("Board") of the Housing and
Redevelopment Authority in and [-()r the City of Monticello, Minnesota (the "Authority") as follows:
Section 1. Authorization; Award ofSaIc.
1.01. Authorization. The Authority and the City of Monticello have heretofore approved
the establishment of its Tax Increment Financing District No. ] -33 (the "TIF District") within its
Central Monticello Redevelopment Project No. 1 (the "Project"), and have adopted a tax increment
financing plan for the purpose of financing certain improvements within the Project.
Pursuant to Minnesota Statutes, Section 469.178, the Authority is authorizcd to issuc and
sell its bonds f(Jr the purpose of financing a portion of the site improvemcnt costs of the
Development District. Such bonds are payable from all or any portion of revenues derived from thc
TIF District and pledged to the payment of the bonds. The Authority hereby finds and deteffi1ines
that it is in the best interests of the Authority that it issue and sell its $100,000 'rax Increment
Revenue Note, Series 2005 (the "Note") for the purpose of financing certain sitc improvement costs
of the Project.
1.02 Agreement Approved; Issuance, Sale, and Tcrms of the Note. The Authority
hercby approves the Contract for Private Redevelopment (the "Agreement") between thc
Authority, Tapper's Holdings LLC (the "Owner") and Strategic Equipment and Supply
Corporation (the "Tenant"), and authorizes the Chairperson and Executive Director to execute
such Agreement in substantially the form on file with thc City, subject to modifications that do
not alter the substance of the transaction and are approved by such officials, provided that
execution of the Agreement by such officials is conclusive evidence of their approval. The
Authority hereby delegates to the Executive Director the determination of the date on which the
Note is to be delivered, in accordance with Section 3.3 of the Agreement. Pursuant to the
Agreement, the Note shall be sold to the Owner. The Note shall be dated the date of delivery
thereof, and shall bear interest at the rate of 6.20% per annum to the earlier of maturity or
prepayment. The Authority shall receive in exchange Jor the sale of the Note thc agreement of the
Owner to pay the cost of site improvements as defined in the Agreement.
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Section 2. Foml of Note. The Note shall be in substantially the following foml, with
the blanks to be properly filled in and the principal amount and payment schedule adjLlsted as of the
date of issue:
UNITED STATE OF AMERICA
STATE OF MINNESOTA
COUNTY OF WRIGHT
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO
No. R-1
$100,000
TAX INCREMENT' REVENUE NOTE
SERIES 2005
Rate
Date
of Original Issue
6.20%
The Housing and Redevelopment Authority in and for the City of Monticello ("Authority")
for value received, certifies that it is indebted and hereby promises to pay to Tapper's Holdings LLC
(the "Owner"), the principal sum of $100,000 and to pay interest thereon at the rate of 6.20% per
annum, as and to the extent set forth herein.
1. Payments. Principal and interest ("Payments") shall be paid on AugLlst 11 2007 and
cach February 1 and August 1 thereafter to and including February 1, 2015 ("Payment Dates") in the
amounts and from the sources set forth in Section 3 herein.
Payments are payable by mail to the address of the Owner or sLlch other address as the
Owner may designate upon 30 days written notice to the Authority. Payments on this Note are
payable in any eo in or currency of the United States of America which, on the Payment Date, is
legal tender for the payment of public and private debts.
2. Interest. Interest at the rate stated herein shall accrue on the unpaid principal,
commencing on the date of original issue. Interest shall be computed on the basis of a year ()f 360
days and charged [(lr actual days principal is unpaid.
3. Available Tax Increment: Available Authority Funds. Paymcnts on this Note are
payablc on each Payment Date solely from and in the amount of "Available Tax Increment," which
shall mean, on each Payment Date, 95% of the Tax Increment attributable to the Redevelopment
Property and paid to the Authority by Wright County in the six months preceding the Payment Date,
all as such terms are delined in the Contract for Private Redevelopment between the Authority and
Tapper's Holdings LLC, a Minnesota limited liability company (the "Redeveloper") dated as of
February _.,2005 (the "Agreement").
258646(JAE)
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. The Authority shall have no obligation to pay principal of and interest on this Note on each
Payment Date from any source other than Available Tax Increment and the failure of the Authority
to pay the entire amount of principal or interest on this Note on any Payment Date shall not
constitute a default hereunder as long as the Authority pays principal and interest hereon to the
extent of Available Tax Increment. The Authority shall have no obligation to pay unpaid balance of
principal or accrued interest that may remain after the final Payment on February 1, 2015.
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4. Default. If on any Payment Date there has occurred and is continuing any Event of
Default under the Agreement, the Authority may withhold fOi-om payments hereunder under all
Available Tax Increment. If thc Event of Default is thereafter curcd in accordance with the
Agreemcnt, the Available T'ax Increment witWleld under this Section shall bc deferred and paid,
without interest thcreon, on the next Payment Date after the Event of Default is cured. If the Event
of Default is not timely cured, the Authority may terminate this Note by written notice to the Owner
in accordancc with thc Agreemcnt.
5. Optional Prepayment. The principal sum and all accrued interest payable undcr this
Note is prepayable in whole or in part at any time by the Authority without prcmimn or penalty. No
partial prepayment shall affect the amount or timing of any other regular payment otherwise
requircd to be made undcr this Notc.
6. Naturc of Obligation. This Note is one of an issuc in the total principal amount of
$100,000, issued to aid in financing certain site improvement costs and administrative costs of a
Project undertakcn by the Authority pursuant to Minnesota Statutes, Sections 469.0()1 through
469.047, and is issued pursuant to an authorizing resolution (the "Resolution") duly adopted by the
Authority on February 2, 2005, and pursuant to and in full conformity with the Constitution and
laws of the State of Minnesota, including Minnesota Statutcs, Sections 469.174 to 469.179. This
Note is a limited obligation of the Authority which is payable solely lI-om Available Tax Increment
pledged to thc payment hereof under the Resolution. This Note and the interest hereon shall not be
deemed to constitute a general obligation of thc State of Minnesota or any political subdivision
thereof~including, without limitation, the Authority. Neithcr the State of Minnesota, nor any
political subdivision thereof shall be obligated to pay the principal of or interest on this Note or
other costs incident hercto except out of Available Tax Increment, and neither the full faith and
credit nor the taxing power of the State of Minnesota or any political subdivision thereof is pledged
to the payment of the principal of or interest on this Note or othcr costs incident hereto.
7. Registration and Transfer. This Note is issuable only as a fully registered note
without coupons. As provided in the Resolution, and su~ject to certain limitations set forth therein,
this Note is transferablc upon the books of the Authority kcpt for that purpose at the principal office
of the City Finance Director, by the Owner hereof in person or by such Owner's attomey duly
authorized in writing, upon surrender of this Note togethcr with a written instrument of transfer
satisfactory to the Authority, duly executed by the Owncr. Upon such transfer or exchange and the
payment by the Owner of any tax, fee, or govcl1llnental charge required to be paid by thc Authority
. with respect to such transfer or exchange, there will be issued in the name of the transfcree a ncw
Notc of the same aggregate principal amount, hcaring intercst at the samc rate and maturing on the
same dates.
:25R646(JAC)
MN ] 90-1 18
.
.
.
This Note shall not be transferred to any person other than an affiliate, or other related
entity, of the Owner, unless the Authority has been provided with an opinion of counselor a
certificate of the transferor, in a form satisfaetory to the Authority, that such transfer is exempt ifom
registration and prospectus delivery requirements of federal and applicable state securities laws.
IT IS IJEREBY CERTIFIED AND RECITED that all acts, conditions, and things required
by the Constitution and laws of the State of Minncsota to be done, to exist, to happen, and to be
performcdin order to make this Note a valid and binding limitcd obligation of the Authority
according to its tcmls, have been done, do exist, have happened, and have been performed in duc
f(mn, time and manner as so required.
IN WITNESS WHEREOF, the Board of Commissioners of the /loLlsing and
Redevelopment Authority in and for the City of Monticello have caused this Note to be executed
with the manual signatures of its Chairperson and Executive Director, all as of the Date of Original
IssLle speeiJied above.
HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE
CITY OF MONTICELLO
Executive Director
Chairperson
REGISTRA nON PROVISIONS
The ownership of the unpaid balance of the within Note is registered in the bond register of
the City Finance Director, in the name of the person last listed helow.
Date of
Registration
Registered Owners.
Signature of
City Finance Director
Tappcr's Holdings LLe
FederalID No.
Section 3.
Tenns, Execution and Delivery.
3.01. Denomination, Payment. The Notc shall be issucd as a single typewritten note
numbered H.-I.
The Note shall be issuable only in fully registered lonn. Principal of and interest on the
Note shall be payable by check or draft issued by the Rcgistrar described herein.
258646(JAE)
MN ] 90- J ] 8
.
3.02. Payment Dates. Principal of and interest on the Note shall bc payable by mail to the
owner of record thereof as of the close of business on the fifteenth day of the month preceding the
Payment Date, whether or not such day is a business day.
3.03. Registration. The Authority hereby appoints the City Finance Director to perfonn
the functions of registrar, transfer agent and paying agent (the "Registrar"). The effect of
registration and the rights and duties of the Authority and the Rcgistrar with respect thereto shall be
as f()Uows:
(a) Register. The Registrar shall keep at its office a bond register in which the Registrar
shall provide for the registration of owncrship of the Note and the registration of transfers and
exchanges of thc Note.
.
(b) Transfer of Note. Upon surrender for transfer of the Note duly endorsed by the
rcgistered owner thereof or accompanied by a written instrument of transfer, in form reasonably
satisfiiCtory to the Registrar, duly executed by the rcgistered owner thercof or by an attorney duly
authorized by the registered owner in writing, the Registrar shall authenticate and deliver, in the
namc of the designated transferee or transferees, a new Note of a like aggrcgate principal amount
and maturity, as requested by the transferor. Notwithstanding the foregoing, the Note shall not be
transferred to any person other than an affiliate, or other related entity, of the Owner unless the
Authority has been provided with an opinion of counsel or a certificate of the transferor, in a form
satisfactory to the Authority, that such transfer is exempt from registration and prospectus delivery
requirements of federal and applicable state securities laws. The Rcgistrar may close the books for
registration of any transfer aftcr the fifteenth day of the month preceding each Paymcnt Date and
until such Payment Date.
(c) Cancellation. The Note surrendered upon any transfer shall be promptly cancelled
by the Registrar and thereafter disposed of as directed by the Authority.
(d) Improper or Unauthorized Transfer. When the Note is presented to the Registrar for
transfer, the Registrar may refuse to transfer the same until it is satisfied that the endorsement on
such Note or separate instrument of transfer is legally authorized. The Registrar shall ineur no
liability f(lr its refusal, in good faith, to make transfers which it, in its judgment, deems improper or
unauthorized.
(e) Persons Decmed Owners. The Authority and the Registrar may treat the person in
whose name the Note is at any time registered in the bond register as the absolute owner of the
Notc, whethcr thc Note shall be overdue or not, for the purpose of receiving payment ot~ or on
account of, the principal of and interest on such Note and for all other purposes, and all such
payments so made to any such registered owner or upon the owner's order shall be valid and
effectual to satisJy and discharge the liability of the Authority upon such Note to the extent of thc
sum or sums so paid. .
.
258646(JAE)
M N /90- I I 8
.
(f) Taxes. Fees and Charges. For every transfer or exchange of the Note, the Registrar
may impose a charge upon the owner thereof sufficient to reimburse the Registrar for any tax, tee,
or other govemmentaJ charge required to be paid with respeet to sLlch transfer or exchange.
(g) Mutilated. Lost Stolen or Destroyed Note. In case any Note shaUbecome mutilated
or be lost, stolen, or destroyed, thc Registrar shall deliver a new Note of like amount, maturity dates
and tenor in exchange and substitution for and upon cancellation of such mutilated Note or in lieu of
and in substitution for such Note lost, stolen, or destroyed, upon the payment of the reasonable
expenses and charges of the Registrar in connection therewith; and, in the case the Note lost, stolen,
or destroyed, upon filing with the Registrar of evidence satisfactory to it that such Note was lost,
stolen, or destroyed, and of the ownership thcreof~ and upon fumishing to the Registrar of ~U1
appropriate bond or indcmnity in form, substance, and amount satisfactory to it, in which both the
Authority and the Registrar shall be namcd as obligees. The Note so surrendcred to the Registrar
shall be cancelled by it and evidence of such cancellation shall be given to the Authority. If the
mutilated, lost, stolen, or destroyed Note has already matured or been called for redemption in
accordance with its terms, it shall not be necessary to issue a new Note prior to payment.
3.04. Preparation and Delivery. The Note shall bc prepared under the direction of the
Executive Director and shall be cxecuted on behalf of the Authority by the signatures of its
Chairperson and Executive Director. In case any officer whose signature shall appear on the Note
shall cease to be such officer before the delivery of the Note, such signature shall nevertheless be
valid and sufficient for all purposes, the same as if such oflicer had remained in office until delivcry.
When the Note has been so executed, it shall be delivered by the Executive Director to the Owner
. thereof in accordance with the Agreement.
Section 4.
Security Provisions.
4.01. Pledge. The Authority hereby pledges to the payment of the principal or and interest
on the Note all Available 'fax Increment as defined in the Note.
4.02. Bond Fund. Until the date the Note is no longer outstanding and no principal thereof
or interest thereon (to the extent required to be paid pursuant to this resolution) remains unpaid, the
Authority shall maintain a scparate and special "Bond Fund" to be used for no purpose other than
the payment of thc principal of and intercst on the Note. The Authority irrcvocably agrees to
appropriate to the Bond Fund in each year Available Tax Increment. Any Available Tax Increment
remaining in the Bond Fund shall be transferrcd to the Authority's account for the TIP District, and
any Available Authority Funds shall be transferred to any Authority account as directed by the
Executive Director, upon the payment of all principal and interest to be paid with respect to the
Note.
.
258646(JAE)
MN 190-1 J 8
.
.
.
Section 5.
Certification of Proceedings.
5.01. Ccrtification of Proceedings. The officers of the Authority ffi'e hercby authorized and
directcd to prepare and fumish to the Owner of the Note certiJied copics of all proceedings and
records of the Authority, and sueh other affidavits, certificates, and infc)m1ation as may be required
to show the facts relating to the legality and marketability of the Note as the same appear from the
books and records under their custody and control or as otherwise known to them, and all such
certified copies, certificates, and affidavits, including any heretofore furnished, shall be deemed
representations of the Authority as to the facts recited therein.
Section 6.
Agreement.
Effective Date. This resolution shall he effective upon full execution of the
258646(JAE)
MN]90-1 ]&
.
.
.
1/26/2005
Page 1 of .2
f) EHLERS
William R. and Barbara R. Tapper
CITY OF MONTICELLO, Strategic Equipment & Supply Corporation
l5.000 sqlft Addition to Existing Industrial Building. TIF District #33
c-~----------I..17~mASH ~LOw ASSUMPll<;>NS
Oistrlct Type New Economic Development District
Distriet Number 33
Ir')fIation Rate - Ev@ryYear 0.0000%
Pay-As-You-Go Inlere:st Rate 6.20on=yo
Note Issued Dale (Present Value Date) 01~Aug-05
LOl;al Tax Ri'lte. Maximum 121.99GO% Pay .2005 Proposed
1=iscal Disparities EJecfion (A-inside or 8-outside) NJA
Year District was certified Pay 2005
Assumes f=irst Tax increment t=or Disll'ict .2007
Year District was modified N/A
Development located in modified area No
Assumes First Tax Increment for Project 2007
Years ofT ax Increment 8
Assumes Last Year of Tax Increment 2014
Fiscal Disparities Ralio
Fi!iical Dispi:lrities Metro Wide Tax Rate
Local Tax Rale . Current
Slate Wide FJropeny Ti;ll( Rate (used for toti'll taxes)
Market Value Tax Rate (lJSe~ for total taxes)
o.oooo'}',
0.0000%
121.9960%. Pay 2005 F'roposed
54.1090% Pay 2004
0.0527% Pay 2004
Commercial Industrial Class Rate
First 150,000
aileI' 150,000
Rental Class Rate
Residentl;ll Class Rate
First 500,000
Over 500,000
E~-
1,50%_2.00%
1.50%
2.00%
1.25%
1.00'%-1.25%
1.00%
.~_, 1.25% ,.
.--~~.~3
~- . .. '.~~m"",~,~.... . ..-~
.'-~'-"~~'~'~"~~-'.~"~'~'-'---------.~~~:!iRiI;te "~'~-,.
Proporty Land Building Totill Clu:!i Ball!ie After Convel"!ilon Date
~~-,.~.I'p"_..,~~~_~,,.., Market_,~~~iirnet V:..~'::'~,~ket Valll~!,e~~.~apacity,. ".ConvQrsi~~a.PElcity mP.,.yab/@ .
.,~---.!...._~.~,8-00212~ ThIlH~nIjQWC"rn~,~_~~J,~,~~..!~,_,.,~9~~,~~. 36,6ae~~~.?OO% ''', 36,688_._..~9.?_
_Tot~~.___________ _____ --_______1,871~______~8.8~_.._____~8_8____ __
~~'.-----::--''------'---~---~'"~---~'--PROJEci'INFORMATlON' .... ..... ....... --,---.,---,----------;---.- ~
.",,~.~,~.. '~"-----------rot~-' Marketv~"'Ta;;;per"~'~'. Mar1<8t Clas& "'~ Project Year Date '
.. Ph.. ~.. ....~. .!t.e...._. .~.q. Ft.I..lJ.,...~.. S, q. Ft./U"i~,~,.~. t./un..lts "'._. Ta.-."------. es ,_ V.al.ue '~.. . R.iI;,!~. .'. cap.. a. City,..,.cons. tl"Uc...~_ed ". pa.y.
~bl@.
1 Industrial 25,000 30,00 $3,70 92.406 2,621,900 1,50%.2.00% 51,668 20015 2007
TOTA~~-=-=- -----===---=:-----=--~__ 92-.406 . . 2,62.1,900.-----::-.-51,688~_____:__ ,
Note:
.1. T~Jj( ~!tirn;Jtt~5 ~re ba:!;lcd On rnark~t v<ll~le.
.2. TIF nm ~~.!.'.ume5 100~;l 01 the building is eom;tri.lC"tl:!~ by January 2. 2006 for payable- 2007.
~~------.,-.-.
~ _.~ Total Local Fi5CIIIII
Use Tax TaJ{ Disparities
CSfI,acity " qapacity ._.~~Elpacity.
-..'"~'."I ,~ -5.1:."'.~ ......_. ,,,.~._
TOTAL 51.~_.~1,~~_.O
TAX CALCULATIONS
Local Fist:al State-wide
Tax Disparities Property
Rate Tax Rate Till( Rate
1.21996 "0.00000 0_5ii09
..i-219~~__fooooo -- D.5~.1D9
Ff5cal State-wide Marl(et
Local Di!lparltie~ Ptoperty Value
Taxes .",----.!~,~e.~_", Taxes Taxes
6M57 0 :17,968 1.3",
_ G3~057 .' 0 ._".- 27..968 _~
Total
Taxe5
92.406
92.406" ,
Not~:
1, MonUcello e;!<)(!S not p~y Fj5cill tl!!;.p;.'lritil:~.~'
Prepared by Ehler,:!;
Ttf Cashflow 1-14-05 lNitl18 years
1/26/2005
~..ge 2 of 2
.
.
EHLERS
( < "" <, ~ ,"
CITY OF MONTlCI:LLO" STRATEGIC EQUIPMENT & SUPPLY CORPORATION
.~."----::---'""""'~'~~. .---".!.AX iNGREI!lE/,ITGASH FLOI'!(._.. "... '""i~..
~-----...:......,.- ~--
Ba~e Project Fiscal C~ptured Semi-Annual State Actmin. Seml-Annual S~mi.Annual PAYMENT DATE
PERIOD BEGINNING Tax Tax Disparities Tax Gross Tax Auditor at Net Tax Present PERIOD ENDING
Yr~:.~,,,~~,.~,c::~_ Redu..~,~,,__ C..paCj~~.lncremen.t,_".,Q~.,~.a(~r_~~,.~. Yrs. Mtll. Yr.
0.0 02-01 2005 36,688 36,088 0-0----- 08- 0 1 ... 2005"
0.0 08-01 2005 36.688 36.688 0 Prl!:!,sent Value Date - 8-01-05 0 0 0 0 0.0 0,-01 2006
0.0 0,-01 2006 36,688 36,088 0 0 0 0 0 0 0 0.0 08.01 ,006
0.0 08-01 2006 36,688 36.688 0 0 0 0 0 0 0 0.0 02-01 2007
OiO 02.01 2007 38,688 61,688 0 15,000 9,150 (33) (456) 8,661 7,665 0.5 08-01 2007
0.5 08-01 2007 36,088 51,688 0 15,000 9,150 (33) (456) 8,661 15,100 1.0 02-01 2008
1.0 0,"01 ,008 36.688 51.688 0 15.000 S,150 (33) (456) 8,661 22,311 15 08-01 2008
1.5 08-01 2008 36,68S 51,688 0 15,000 9,150 (33) (456) 8,661 29.306 2.0 02-01 200s
20 02-01 2009 36,688 51,688 0 15,000 9,150 (33) (456) 8,661 36,aSO 2.5 08.01 2009
25 08-01 2009 36.688 51 ,688 0 10,000 9,150 (33) (456) 8,661 42,670 3.0 0,.01 2010
3.0 02-01 2010 36.688 51,688 0 15,000 9,150 (33) (456) B,B61 49,052 3.5 08-01 2010
3.5 08-01 2010 3B,688 51,"88 0 15,000 9,150 (33) (456) 8,661 55,243 4.0 02-01 2011
4.0 02-01 2011 36.688 51,6B8 0 15,000 9,150 (33) (456) 8,661 61,247 4.5 08-01 20.11
4.5 08-0' 2011 36.688 51,6B8 0 15,000 9,150 (33) (456) 8,661 67,071 5.0 02-01 2012
0.0 02.01 2012 36,68B 51,68B 0 15,000 9,150 (33) (456) 8,661 72,719 5.5 08-01 2012
5.5 08.01 ,012 36,688 51,688 0 15,000 9,150 (33) (456) 8,661 7B,198 6.0 02-01 2013
6.0 0,-01 2013 36,688 51,68B 0 15,000 9,150 (33) (456) 8,661 83,812 6.5 08-01 2013
6.5 OB-Ol 2013 36,68S 51,68B 0 15,000 9,150 (33) (456) 8,661 88,667 7.0 02-01 2014
7.0 02-01 2014 36,688 51,688 0 15,000 9,150 (33) (456) 8,661 93,666 7.5 08-01 2014
7.5 08.01 ...~.~~"~.~~__..~_!,~,Q90_~.._~ -,,----.illL_~~~~ja,515 ~._~0'______JOI5
-----.-..----I!>~~----____146.J95.__.~...~L._~5~. --_.""_."'.,_...y,~
P-""entV"ueDate -a-ll1-0~.____._,_. ---..-----'.Q7.~..___(3~1~. ._,,~~15 .'-'.,-.-
Note~
"I. State Auditor p.i.Ynle:nt j:';. b.1sed on 1s: h<itf. pJ.y l0041.1.ctuiil ;;lnd niiilY il1crc<lse over t~tl"l1 of c;liMrkt
2:. A!ii$lIt"r'les d~V(i~l(}PIT1ent i~ Confi\t"'lJct~d in 2005, as~.e5sed in:t:006 and first inCrl~tiHmt is P<"'Jid in 2'007.
'I Amount of Increment wil! \I..HY d~~p~riding UpOri rn~(ket value. lax r~He~, clas!;. n:W~s, construc.tion schedLlIt~ "nd inflation on market value,
4, JnllJtion on tax r~W~ cannot be C;.,1ptu~d ,. TAX ~ATES COULD Dr~CUNE
5. TlF do!!!> not c~lplure sliiltE! wide pf"(m€H1y taxes Or 'narket value prop~!riy WX(?!i.
IJ, t\ssumes inflationary irlCnmKHlt In 1006,
.
How T:I\: IIIUCI1!!',~lt is ("jllt.',I,IIIIICI
'1'/11:11 rr"')CI'I~'TlIxe,~
Ics,~ Stille Tax
Ics,~ Murkcf YIIIIIC '.':1\
Ic,~s f:\.istine Tuxes
Al1nl.l;11 Tit\. In('rl'nlcnt FilllUlt:inC
n.-UJ6
-27.%:-1
.I.JHI
.:..:H~ [stinMlc
1~.19IJ k~~ lIny :Ulllli,l. fC(~:I:
aUT I FORANALYSI$
Current Mark~t Value - E~l
New Mi:lr'kel Value, bt
Oifferenc~
I-'fe~cnt Value {if TilX InC.1e~'r'Ioent
Oifferer1{:~
Value likely tn Q:;clIr WlttKlul Tax InC.1~r~nt is Less Th<ln
1,871,900
~.,,~93.80D
2,6;1,900
_~15
2,~n,385
2,523,3liI5
.
Prep;ir~d by Ehler,;
TIf= COI$hflow 1-14-05 with e years
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Lynne
Dahl..
Fleming
Address:
P.O. Box 1075
113 Locust Street
Monticello, MN 55362
Email:
Lynne@ DesignforPrint.com
Website:
www.DesignforPrint.com
CUSTOiViER n\~V,OjCE
Today's date: January 24, 2005
DUE UPON BECEIPT
Attn: Ollie Koropchak
City of Monticello - HRA
505 Walnut Street #1
Monticello, MN 55362
CREATIVE SERVICES: Billed at $75 per hour
rr ~ Transformation Home Loan Brochure:
".
~ ~ < (Oty. 2 hours)
';:-..v ~~... Initial rough draft of brochure for 1 st HRA meeting
~ '" .
. ~ Err . (Qty. 1 hour)
~ ~ 4. / Additional design/layout after rough draft 75.00
oF."" rP~ Sub-total on creative $225.00
'^-. 4; ~
,
'5"50.
$150.00
PRINTING:
(Oty. 500) Billed at $65 per toO
4-panel brochure, full color, 2-sides, folded
$325.00
Sub-total on print: $325.00
6.5% MN state sales tax: Tax Exempt
WEBSITE SERVICES:
www.Monticelloland.com
Initial d~n search ~nd r~~istration for one year . $50.~
\ot .l.t\. Sa \ . '-\ ~ <t-q Sub-total on pnnt: $50.00 -J
.Sa.
I TOTAL DUE: $600.00 I
.
*You agree to pay all amounts due within 30 days of the invoice date, If the total balance due shown on the invoice is paid within 30 days
of the invoice date, no Finance Charges will be imposed on fees or expenses appearing on the invoice, You agree to pay a Finance Charge of
1,32% monthly periodic rate on any balance more than 30 days old, This is an Annual Percentage Rate of 16.0%.
CITY OF MONTICELLO
ACCOUNTS PAYABLE
505 WALNUT STREET. SUITE 1
MONTICELLO, MN 55362
763-295-2711
17.1
~
NO. 80940
DATE
WELLS FARGO BANK
MONTICELLO. MINNESOTA 55362' (763) 295.2290
CHECK NO. AMOUNT
01/20/2005 80940
THREE THOUSAND SEVEN HUNDRED FIFTY SEVEN AND 00/100 DOLLARS
$3,757.00
PAY TO
THE
ORDER
OF
BBF PROPERTIES
204 LOCUST STREET
MONTICELLO MN 55362
C-::'.~::/~.~;:'.0;/:j"':: .:;;/ /t-:~/ ~:~/:'.:~:",.:r~:)
l~:?;:.;~ ~"'?;T/;';"
I.... ........ U {U,ttl.{ ........,
lC.:::/::>..-::::;.:.:...::.,.......... ....:::..\:..'7:\:.:::..:/L.)
II' 0 BOg 1, 0 II' I: 0 g . 0 0 0 0 . g I:
7 bOO O. 711'
r
VENDOR 001295 BBF PROPERTIES
01/20/2005
CHECK
80940
FUND ',& ACCOUNT
P.o.# INVOICE
"\
DESCRIPTION
AMOUNT
213.46522.6511
TIF 1-22
PAYBACK INSTALLMENT 3,757.00
TOTAL
3,757.00
.
.
CITY OF MONTICEllO' MONTICELLO, MN 55362
-'
CITY OF MONTICELLO
ACCOUNTS PAYABLE
505 WALNUT STREET' SUITE 1
MONTICELLO, MN 55362
763-295-2711
17.'
"""910
NO. 80945
DATE
WELLS FARGO BANK
MONTICEllO, MINNESOTA 55362 . (763) 295.2290
CHECK NO. AMOUNT
01/20/2005 80945
THREE THOUSAND FOUR HUNDRED FOURTEEN AND 00/100 DOLLARS
$3,414.00
PAY TO
THE
ORDER
OF
BLUE CHIP DEVELOPMENT COMPANY
105 MISSISSIPPI DRIVE
MONTICELLO MN 55362
.....~.... '.. ........
,.,'....... ...... ,. ........... :fU~............ "".' ....
~t~.~~ ....'.;:~r";;.i,.
~............. ...... ...... ......_~-- ...... ......,
.. .. .. .." 0"" ,. " ..,:'
II' 0 BOg 1, 5 II' I: 0 g . 0000 . g I:
7 bOO O. 711'
VENDOR 000172 BLUE CHIP DEVELOPMENT COMPANY
CHECK
80945
213.46525.6511
TIF 1-25
PAYBACK INSTALLMENT 3,414.00
TOTAL
3,414.00
.
.
CITY OF MONTICELLO' MONTICELLO, MN 55362
CITY OF MONTICELLO
ACCOUNTS PAYABLE
505 WALNUT STREET. SUITE 1
MONTICELLO, MN 55362
763-295-2711
DATE
17.1
9i"O
NO. 80950
WELLS FARGO BANK
MONTICEl.LO. MINNESOTA 55362' (763) 295-2290
CHECK NO. AMOUNT
01/20/2005 80950
THREE THOUSAND EIGHT HUNDRED SIXTY ONE AND 00/100 DOLLARS
$3,861. 00
PAY TO
THE
ORDER
OF
CEDRUS CREEK CRAFTSMAN, INC
ATTN: JOHN KONAREK
12420 ARMITAGE AVE NW
MONTICELLO MN 55362
(:9fX~.1q~/ij;r:ti)
I...,.:......,'. Ou l ) (I tit! ......_u,
I~{::~::(:::> ..:: ':::.....::...~.::..:7.~.-::~:..-:~.~~~::::.:::.. :::)
1110 B 0 ~ 50111 I: 0 11 ~ 0 0 0 0 ~ ~ I:
7 bOO 0 ~ 7 III
VENDOR 001114 CEDRUS CREEK CRAFTSMAN, INC 01/20/2005 CHECK 80950
/' l
FUND & ACCOUNT P.O.# INVOICE DESCRIPTION AMOUNT
213.46520.6511 TIF 1-20 PAYBACK INSTALLMENT 3,861.00 I
TOTAL
3,861.00
.
.
'-
CITY OF MONTICELLO' MONTICELLO, MN 55362
CITY OF MONTICELLO
ACCOUNTS PAYABLE
505 WALNUT STREET. SUITE 1
MONTICELLO, MN55362
763-295-2711
17-1
9iO
NO.
80974
01/20/2005
TWO THOUSAND THREE HUNDRED NINETY AND 001100 DOLLARS
80974
WEllS FARGO BANK
MONTICEllO, MINNESOTA 55362' (763)295-2290
AMOUNT
$2,390.00
DATE
CHECK NO.
PAY TO
THE
ORDER
OF
FRONT PORCH ASSOCIATES
PO BOX 1338
MONTICELLO MN 55362
r;;~;:~;~f.+~':::Ju6:\~9:.~/:;:!::,:;~'
t"........~ (. l(f;r'!' ,.............._,
;~/;',"/>.', ' f.A../.j r.".(~..~......\/:....,.:>..'!
-: .:.: ~~::. :'.::.:;: ...:.::;............; :-..' ..... ~.:. :':'n ;,:..~\ ;:.:..-:, :..: .'i
111080 g? ~II1 1:0 g 1.0000 I. gl:
7 bOO 0 I. 7 III
VENDOR 002777 FRONT PORCH ASSOCIATES
INVOICE
213.46529.6511
2/1/2005
PAYBACK INSTALLMENT 2,390.00
TOTAL
2,390.00
.
.
CITY OF MONTICEllO. MONTICEllO, MN 55362
CITY OF MONTICEllO
ACCOUNTS PAYABLE
505 WALNUT STREET- SUITE 1
MONTICEllO, MN 55362
763-295-2711
DATE
17.'
9iO
NO. 80992
WELLS FARGO BANK
MONTICELLO, MINNESOTA 55362 . (763) 295.2290
CHECK NO. AMOUNT
01/20/2005
TWO THOUSAND NINE HUNDRED FORTY AND 00/100 DOLLARS
80992 $2,940.00
PAY TO
THE
ORDER
OF
INTEGRATED RECYCL TECH, INC.
C/O STEVE BUDD
9696 FALLON AVE NE
MONTICELLO MN 55362
f.:Z~~~?~.'i~. '~. ;;~;.:~~.::?':~;~~:':.'.".;.'
:;~t;:/::}+~.wA . . <:)::\)()
. ...... .... .. ,. :: ..~'.''':: '<,;':~.'~~..;:.:~~,,~>
11108099 2111 1:09 .0000 .91:
? bOO o. ? III
VENDOR 002091 INTEGRATED RECYCL TECH, INC.
CHECK
80992
213.46528.6511
2/1/2005
2,940.08-
TOTAL
2,940.00
.
.
\...
CITY OF MONTICELLO. MONTICELLO. MN 55362
CITY OF MONTICELLO
ACCOUNTS PAYABLE
505 WALNUT STREET- SUITE 1
MONTICEllO, MN 55362
763-295-2711
DATE
01/20/2005
THREE THOUSAND EIGHTY FOUR AND 00/100 DOLLARS
17.'
~
NO. 81014
WELLS FARGO BANK
MONTICELLO. MINNESOTA65362' (763) 296.2290
CHECK NO. AMOUNT
81014
$3,084.00
PAY TO
THE
ORDER
OF
MASTER'S FIFTH AVENUE, INC
204 LOCUST STR
SUITE 209
MONTICELLO MN 55362
~'::;'{:0.1/:"'71/ tLX')L:f:;,
...-. ...... f.J-A"" j,(/L...-' /...... ...... ..... .
:)(f;/:?~~.., . .:'''~:''.:.~~}:'r:/::';
...... ............ h.....0:!~.h... ..n_,
.. '" .. "t" ... J,.:............_.......,,,"'
III 0 8 . 0 . L. III I: 0 11 . 0 0 0 0 . 111:
7 bOO O. 7111
VENDOR 002731 MASTER'S FIFTH AVENUE, INC
CHECK
81014
213.46585.6511
2/1/2005
PAYBACK INSTALLMENT 3,084.00
TOTAL
3,084.00
.
.
CITY OF MONTICEllO. MONTICEllO, MN 55362
CITY OF MONTICELLO
ACCOUNTS PAYABLE
505 WALNUT STREET - SUITE 1
MONTICELLO, MN 55362
763-295-2711
DATE
17-'
------gji)
NO. 81049
WELLS FARGO BANK
MONTICELLO. MINNESOTA 66362' (763) 295.2290
CHECK NO. AMOUNT
01/20/2005 81049
TEN THOUSAND SIX HUNDRED TWENTY TWO AND 54/100 DOLLARS
$10,622.54
PAY TO
THE
ORDER
OF
PRESBYTERIAN HOMES HOUSING
AND ASSISTED LIVING, INC
2845 HAMLINE AVE NO
ROSEVILLE MN 55113
(>:',:~:~.::;.~::'(~;' ;::/~ '~"':: Z I /L:.::::~::.::;):'.:::.:.::7\
I ...... n.... /7 ~/ ..'(A~ , ....., .....,..", .
'I':"':'" i;::;-:' ~:t;; ,". "::" ,:> H
".i.....,,;:..0~ W .,..-4t{'"...:.-.........
I;,::i:<;i:;:.-:....:." ,,,F ..(:<<-.<::~:.::.-.X..
III 0 8 . 0 I.. 11 III I: 0 11 . 0 0 0 0 . 11 I:
7 bOO O. 7111
r
VENDOR 001217 PRESBYTERIAN HOMES HOUSING
01/20/2005
CHECK
81049
FUND & ACCOUNT
P.O.# INVOICE
DESCRIPTION
AMOUNT
~
I
!
213.46519.6511
TIF 1-19
PAYBACK INSTALLMEN 10,622.54
TOTAL
10,622.54
.
.
CITY OF MONTICELLO. MONTICEllO, MN 553G2
~ t -'
r
lod
I I
CITY OF MONTICELLO
ACCOUNTS PAYABLE
505 WALNUT STREET . SUITE 1
MONTICELLO, MN 55362
763"295-2711
DATE
17-1
-----gji)
NO. 81061
WELLS FARGO BANK
MONTICELLO, MINNESOTA 56362 '(763)296-2290
CHECK NO. AMOUNT
0,1/20/2005 81061 $24,748.00
TWENTY FOUR THOUSAND SEVEN HUNDRED FORTY EIGHT AND 001100 DOLLARS
PAY TO
THE
ORDER
OF
ST BENEDICT'S CENTER
ATTN: JIM HIATT, ADM
1810 SEMINNESOTA BLVD
ST CLOUDMN 56304
11108 .0 b .111 ':0 g .0000 . gl:
j(:'::'.\:::t~;::'0;/.:/::,'j;/ ~:/~:!}ff;:;:
..._........l~ ~) t....................,
;::.:/;::.:,:;::~ w/!l~'t.t.!li.:::::::.:(::i
l:'l}(::::{ '''::'':.' ......... c:!::;:..-:. :../:-::..~.::.:;,'I
7 bOO o. 7111
VENDOR 001558 ST BENEDICT'S CENTER
CHECK
81061
FUND'
213.46524.6511
TIFl-24
PAYBACK INSTALLMEN 24,748.00
TOTAL
24,748.00
.
.
CITY OF MONTICEllO. MONTICEllO, MN 55362
./
SEVEN HUNDRED AND 00/100 DOLLARS
CITY OF MONTICELLO
ACCOUNTS PAYABLE
505WALNUT STREET. SUITE 1
MONTICELLO, MN 55362
763-295-2711
DATE
01/20/2005
17-'
""'9iO
NO. 81071
WELLS FARGO BANK
MONTICELLO, MINNESOTA 55362' (763) 295.2290
CHECK NO. AMOUNT
81071 $700.00
PAY TO
THE
ORDER
OF
TERRANCE & MARY TOMANN FLP
C/O UMC
500 CHELSEA ROAD
MONTICELLO MN 55362
(':::\:~:<:'(~(i:':7':::' 2IAjL~:,:~~:/r..:~:?:::?,.
I"'~' ..-.. L-f-, , / .....,...... "'m ..
..::/:::/./J)'A ~,,"f ;j'::::":::;:::"
.... ........ L./~ W. ,f I .... ..,-" ,." ,
:(::.>':::;:'-::' ;. : , '::-...: ?;:::::."/-::.>
11108 . 0 ? . III I: 0 11 . 0000 . q I:
7 bOO o. ? III
VENDOR 002658 TERRANCE & MARY TOMANN FLP
CHECK
81071
213.46531.6511
2/1/ 0 5
PAYBACK INSTALLMENT
700.00
TOTAL
700.00
.
.
CITY OF MONTICELLO. MONTICELLO, MN 55362
.J
'''t
, ".<"~_:~}
ts~
CITY OF MONTICELLO
ACCOUNTS PAYABLE
505 WALNUT STREET. SUITE 1
MONTICELLO, MN 55362
763-295-2711
DATE
'7-'
----g-jQ
NO. 81072
WELLS FARGO BANK
MONTICEllO, MINNESOTA 55~62 . (76~) 295-2290
CHECK NO, AMOUNT
01/20/2005 81072
EIGHTEEN THOUSAND NINE HUNDRED ONE AND 50/100 DOLLARS
$18,901.50
PAY TO
THE
ORDER
OF
TWIN CITY DIE CASTINGS CO.
ATTN: DOUG HARMON
1070 SE 33RD AVENUE
MINNEAPOLIS MN 55414
C~;"~:~':::;'~;::~~'::2//'.:L;/:~:t::..:-:,:;...,-.'.'.
...-. '"_', ( ), ,/ t, / ."... ....... "".
t\;/~=i{~X (/. 1 /1 it/)fJ:~'::.:,.'"
..;.:.:.:i.:.:.:.:......:......... .v:;" ' ::- ~'-;:;' L":..'~ --
11108 .0 ? 2111 1:0 g .0000 . ~I:
? bOO O. ? III
VENDOR 000456 TWIN CITY DIE CASTINGS CO.
01/20/2005
CHECK
81072
FUND & ACCOUNT
P.O.
INVOICE
DESCRIPTION
AMOUNT
213.46526.6511
TIF 1-26
PAYBACK INSTALLMEN 18,901.50
TOTAL
18,901.50
.
.
\...
CITY OF MONTICELLO. Mm.TICELLO, MN 55362
.
.
.
HRA Agenda - 02/02/05
9.
Economic Development Director's Report.
A. Business Retention and Expansion _
-Bill and Barb Tapper - 25,000 sq ft warehouse addition to existing 60,000 sq ft industrial
building. Proposed tenant, Strategic Equipment and Supply Corporation, will commit to 40
new jobs for Monticello at an average hourly wage of $17.90 w/n benefits and average median
wage of $19.00 w/o benefits. This will be their regional and control center. In reality, they plan
to have 50-55 people at this facility.
-Dahlheimer still interested in relocating to Otter Creek Business Campus.
-Local business has decided to add on in 2005 rather than relocate to Otter Creek.
-Other two local companies reported last month looking to expand in 2005 and at long range
plans.
- 12,000 sq ft addition, Tire Service Equipment Mfg (unaware of FDA program)
R. Industrial leads:
-28,000 sq ft manufacturing facility - rubber products and rubber coated facility. Mail
worksheet and trying to set up visit. (L,ead from general contractor)
- 5,000 sq ft office/warehouse, 1-2 acres, 7 fLlll~time (owner call)
- 40,000 to 60,000 sq ft manufacturing, 4-6 acres. (Metro realtor broker) Mailed worksheet.
- 8,000 to 12,000 sq ft condo for lease or sale, 3 buildings, Dundas Road, Oakwood Industrial
Park, spring construction (Builder and Architect)
- 10,000 sq ft manufacturing. 2-4 acres, 8 people, metal fabricator, returned worksheet. (Brad
Barger)
- 30,000 to 50,000 sq it manufacturer, 10 existing, 10 new, 3-5 acres (realtor, commercial
special ist)
- 20,000 sq ft with room to expand, 7+ acres, manufacturing (owner)
- 30,000 sq ft light assembly, distribution. 3-3.5 acres 12 full time, (owner)
- 15,000-20,000 sq ft, 3-5 acres, heavy construction equipment, 90 at peak, 12 in office
( owner)
C. Transformation Home Loan Program - Breakfast held January 26, about 10 in attendance.
Info mailed to 375 home owners with 2004 assessed market value ofless than $150,000.
D. Received $45 from Standard Iron for reimbursement of legal fees associated with Release
of Contract.
E. Marketing Committee - Meeting scheduled for February 10, 7:30 a.m.
F. No new inf(xmation from Chuck Van Heel on acquisition of theater on West Broadway and
potential redevelopment of area.
G. Plan to meet with A VR relative to optional relocation sites.
H. Covenants being prepared by Council agenda February 14 and recording thereafter.
J. Registered for Ehlers Seminar, February 3 and 4.