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HRA Agenda 02-15-2005 . AGENDA MONTICELLO HOUSING ANI> REDEVELOPMENT AUTHORITY Tuesday, February 15,2005 - 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: I. 2. 3. 4. 5. . 6. Wayne Mayer. Rick Wolfsteller, Ollie Koropchak, and Angela Schumann. Call to Order. Consideration to approve the February 2,2005 1 IRA minutes. Consideration of adding or removing items from the agenda. Consent Agenda. Tahled - Consideration to approve a resolution adopting a modification to thc Redevelopment Plan for Central Monticello Redevelopment Project No.1 and establishing TIF District No. 1- 33 therein and adopting a TIF Plan therefor. Continued - 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 $ Tax Increment Revenue Note, Series 2005. 7. Consideration to authorize payment of HRA bills. 8. Consideration of Executive Director's Report. 9. Committee Reports. a) Marketing Committee - Lahr and Barger. 10. Other Business. a) Consideration to cancel the March 2, 2005 HRA meeting with the next regular meeting, April 6,2005 (annual meeting). . 11. Adjournment. . - . '" . HRA Agenda - 02/15/05 5. Tabled - Consideration to approve a resolution adootimr the modification to the Redevelopment Plan for Central Monticello Redevelopment Proieet No.1: and establishin~ TIF District No. 1-33 therein and adoptine- the TIF Plan therefor. A. Reference and backe-round: At the January 17,2005, the HRA approved entering into a Preliminary Development Agreement with the 'rappers and authorized the financial and legal consultants begin preparation ofTIF District No. 1-33, an Economic District. A public hearing feJr establishment ofTIF District No. 1-33 has been called fix February 28,2005, by the City Council. The TIF Plan was distributed to the taxing jurisdictions on January 28, 2005, for 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 Buhul, 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 Fehruary 11 or 14. The company's construction financing is through Stearns Bank, St. 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 ft 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 (1leavy 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 johs. The attached resolution describes the findings for establishment of the TIF District, please reVIew. B. Alternative Action: I. A motion to approve the resolution adopting the modfication to the Redevelopment Plan for Central Monticello Redevelopment Project No.1; and estahlishing TIF 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. HRA Agenda - 02115/05 . C. Recommendation: The City Administrator and Executive Director recommendation is alternative no. 1. D. SUPDortin1! Data: Copy of resolution for adoption, excerpts ofthe TIF Plan, and jobs and wage levels. . . 2 . . . MONTlCELLO HOUSING AND RF:OEVELOPMKNT 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. I AND ESTABLISHING TAX INCREMENT FINANCING DISTRICT NO. 1~33 THEREIN AND ADOPTING A' TAX INCREMENT FINANCING PLAN THERF:FOR. 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 Redevelopment Project No. I (the "Redevelopment Plan Modification") and establish Tax Increment Financing District No. I ~33 and adopt a Tax Increment Financing Plan (the "TIF Plan") therefor (the Redevelopment Plan Modification and the TIF Plan are referred to collectively herein as the "Plans"), all pursuant to and in conformity with applicable la\v, including Minnesota Statutes, Sections 469.00 I to 469.047, and Sections 469.174 to 469.1799, inclusive, as amended (the "Act"), all as retlected 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 HRA has performed all actions required by law to be performed prior to the adoption of the Plans. The I-I RA has also requested the City Planning Commission to provide for review of and written comment on the Plans ancl 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 tinds that 'fax Increment Financing District No. 1-33 is in the public interest and is an "cconomic 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 preservation and enhancement of the tax base of the City and the State 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 thc City as a whole, far the dcvelopment or redeveloprllcnt of thc project area by private enterprise in that the intent is to prov ide on Iy that pu bl ic assistance necessary to make the pri vate developments financially feasible. 3. expanded. The boundaries ot' Central Monticello Redevelopmcnt Project No. I are not being . . . 4. Conditioned upon the approval thereof by the City Council following its public hearing thereon, the Plans, as prescnted to the HRA on this datc, are hereby approvcd, established and adopted and shall be placed on tile in the ofllce ofthe Executive Director ot'the HRA. 5. Upon approval of the Plans by the City COLlllcil, the staff, the lIRA's advisors and legal counsel are authoriLed and directed to proceed with the implementation of the Plans and for this purpose to negotiate, draft, preparc and prcsent to this Board fbr its consicleration all further plans, resolutions, documents and contracts necessary for this purpose. Approval of the Plans docs not constitute approval of any project or a Development Agreement with any developer. 6. Upon approval of the Plans by the City Council, the Executive Director of the HRA is authori7.ed and directed to forward a copy ot'the Plans to the Minncsota Department of Revenue pursuant to Minnesota Statutes 469.175, Subc!. 4a. 7. The Executive Director of the HRA is authorized ancl clirected to forward a copy of the Plans to the Wright COLlnty Auditor and rcquest that the Wright County Auditor certify the original tax capacity of the Distriet as described in the Plans, all in accordance with Minnesota Statutes 469.177. Approved by the Boarcl of Conllllissioners of the Monticello Housing and Redevelopment Authority this 151h day of February, 2005. '""' Chair ATTEST: Secretary . . . o ~ L&J ~ EHLERS & ASSOCIATES INC To: Ollie Koropchak, City ofMonticel1o Mark Ruff February 10, 2005 But For Analysis for TIF District 1-33 From: Date: Subject: We have reviewed the building owner's pro fom1a from January, 2005 which demonstrates the effect ofrenting a portion of the existing ll- Window building and constructing an additional 25,000 s.f. for a new tenant. It is our understanding that the tenant will be renting 40,000 total s.t'. of office/warehouse for $5 per s.f. of building. The rental rate does not include the property taxes, which means that the owner is responsible for the costs. According to the building owner's pro forma, even with the assistancc thc project will be a negative cash flow for at least 5 years because of the cost of debt, the costs of the existing building, and the cost of taxes for the building. Wc havc surveycd other cities with similar size and proximity to the metro area. It is our understanding that market rents for this type of developmcnt arc approximately $5 to $6 per s.l'. as a triple net lease (in which the tenant pays all of the taxes and operating expenses). Attached is an analysis which shows a simplified view ofthe assistance for the expansion only. If we assume that the project would be estimated to cost $1,479,365 (including land value) and a loan for 20 years were at 80% of value, the required equity would be $295,873. Assuming that the rental rate were $5 triple net, the return on equity would be 2% without TlF and 8% with TIF. Generally, the analysis shows that the cost of the building is higher than the area rents can support. The choice for the lIRA is to provide some level of assistance for the project now or to wait until the market rents catch up to the cost of building a new building. We certainly recognize the building owners difficulty in renting the remaining 15,000 s.l'. of the existing building and it should be a factor in the HRA's decision on assistance. However, these circumstances are not typically included in a standard "but for" analysis for a TlF assistance package. LEADERS IN PUBLIC FINANCE k 3060 Centre Pointe Drive Roseville, MN 55113-1105 Phone: 651-697-8505 Fax: 651-697-8555 mark@ehlers-inc.com . It is our recommendation that the tenn of assistance is tied to the tenn ofthe lease. If the lease were to be shorten cd and the rental rates raiscd, it would follow that the HRA should have an opportunity to review the need for TlF at that time. . . . . . New Building 1-33 TIF But For Analysis s.f. Building Cost Land Cost Total Cost Mortgage Equity Rent: Income Broker/Misc. Debt Return on Equity Annual TIF Return on Equity 25,000 1,300,000 179,365 1,479,365 52 per s.f. 2.1 acres at $2/s.f. 1,183,492 295,873 5 per s.f. triple net (without taxes or maint.) 125,000 -13,500 -104,864 per year for 20 year loan at 6.2% 6,636 2% without TIF 17000 8% with TIF STEARNS BANK 3202539503 02/06 '05 23:02 NO.400 02/02 ~s~~~= We Get the Job Done! 4191 2nd st. S. . St. Cloud, MN 56301 . www.steorns..bank.com 320-253-6607 or l.aOO-S20~n62 . Fax: 320~253-3051 . Member FDIC. ._TJII'Dl,,,,,,.1:=l~,,I,:C"~' February 7~ 2005 Ms. Ollie Koropchak City ofMonticeUo 505 Walnut 5t. Monticello, MN 55362 RE: Tapper's Holdings, LLC Dear Ms. Koropchak: . This letter is to inform you that Steams Bank considers the proposed TJF Financing and City Loan an integral part of the financing for the proposed expansion ofthe building owned by Tapper's Holdings, LLC, located at 1324 Oakwood Drive E, Monticello, MN. Steams Bank does not consider the proj eet viable without the proposed TIF Financing and City Loan. Please feel free to contact me at 320-202-6132 with any questions. a--'- ? t .",' . / . " .......' y Steve Domine Senior Vice President SMDlke . Steorf)$ 60nk ~oe<;rt1on;; AIhony, MN · Edina. MN · Evansville. MN · HoIdIng1'ord, MN . sr. OOtId. MN . Upsola. MN . ScQffodole. IV. 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: Redcvelopment Project: Type of TIF District: Parcel Number: Proposed Development: Maximum duration: Esti mated annua I tax increment: Proposed uses: Form of financing: Administrative fee: Interfund Loan Requirement: 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 Ccntral Monticello Redevelopment Project No. J. (The Modification is to include the project activities anticipated in the District.) An economic development district 1 55-0 1 8~002120 The District is being created to facilitatc 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 from the date of receipt of the first increment (9 years of increment). The 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 term inate after 2015, or when the TIF Plan is satisfied. Up to $18,299 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 TIF 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 10<0, of annual increment, if costs are justified. If the City wants to pay for administrative expenditures from a tax incremcnt fund, it is recommended that a resolution authorizing a loan from another fund must be passed PRIOR to the issuance of the check, . . . TlF District Overview 3 Year Activity Rule (\\'469.176 Subd. 10) At least one of the following activities must take place in the District within 3 years from the date of cel1ification: · 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 servIces such as sewer and water) · If the 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 if one of the following occurs: · The revenues are actually paid to a third party with respect to the activity · Bonds, the proceeds of which must be lIsed to finance the activity, are issued and sold to a third party, the revenues are spent to repay the bonds, and the proceeds of the bonds either are reasonably expected to be spent before the end of the later of (i) the five year period, or (i i) a reasonable temporary period within the meaning of the use ofthat term under S. ]48(c)(l) of the Internal Revenue Code, or are deposited in a reasonably required reserve or replacement fund · Binding contracts with a third party are entered into for performance of the activity and the revenues are spent under the contractual obligation · Costs with respect to the activity are paid and the revenues are spent to reimburse for payment of the costs, including interest on unreimbursed costs. Any obligations in the Tax Increment District made after approximately February, 20] 0, will not be eligible for repayment from tax increments. 4 Year Activity Rule (\\' 469.176 Subd 6) 5 Year Rule (\\' 469.1763 Subd 3) The reasons and facts supporting the findings for the adoption of the TIF Plan for the District, as required pursuant to M,)'., Section 469.175, S'ubd. 3, are included in Exhibit A of the City Council Adopting Resolution. Page 2 TIF District Overview . BOUNDARY MAPS OF CENTRAL MONTICELLO REDEVELOPMENT PROJECT NO.1 AND TAX INCREMENT FINANCING DISTRICT NO. ] -33 . . Page 3 "- I , . _t.... - m. - () )> "\~. r .,~ ~.' s .. - G -. :J . :: : - .~' ~-.. il '< :;J .. '. . , ":. .-. r. ~\ :: f' CD . . \ - 10,." a x . :I - OJ ~"O"l N' :.t '.. ~~ 0 ~ O' ;:: ::: - .... I ... - , 0 ;:) ~ '.. -'. .;.. ~ ,ll~:i: IQ..: . ;.0- - en ;cz C'l :;f'-~ 5' Cr ._- :i,':;7 - ,. - :I CD C Q.... ii:!:: .. .. - a. 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'1\: , " DEVELOPMENT SERVICES Economic Development Director Phon.:: Fax; EmaiJ: (763) 27/...3208 (763) 295.-4404. . 011 ie;. knrol'lchakl{h i. mon[jccl J&. mn. us, \I ., :',\ .' ,t " ..\1____.______. CITY OF MONTICELLO, MINNESOTA . , , , , Number ofJob.i , F,u U-time , L ~ ~ 2. S /7 . ~C?mpan)' Name , : JOBSWAGE.2004 ~o'1 oJl . 1;/ . "",'".;~:l'~,': .:t\:~~:: :', / ': :':;:,~:~: l.~\ : ,\Iij,\," .,' .t, ".~... /,.\ . 1"1 : . 'f~~, J"-"~_>:'/!(~~'I.~" c, :. ,co ( ;L: .\~I~.-' . ,oh"'_..._......ll I' .~t. I J r .' , , ;,"~ ..' - ' JOB AND WAGE LEVEL - EXISTING JOBS I" ,"'1/"( ,,). I", \ ~'. , I ,l . .. ~,,~j' . I I Please indicate number of current employees at each level and indicate the corresponding benefit jeve1., ' ':~ , I II Hourlv Wa!!e Level Hourly Value of Vol un tar X Benefits (S) : I ,I'r\ : I ;' ,'~ I." .: , " 1-, I' " , ,. .' 1/ j Part-time , " , (Excl. benefits) Less than $7.00 $7.00 to $7.99 $8.00 to $9.99 $10.00tO$IJ.99 $12.00to$13.99 4. tJ " i.oo t/. (J () 1.1)0 J/.oo 1. DO , ' , ~ \ . , " I, .\ I j' , ':, '~~ " . , , '. / . :l" I . ~I' , , $J4.00 to$15.99 $16.00 to $17.99 $18.0010 $] 9.99 $20.00 [0 $21.99 $22.00 and higher Sira.f7 ,.~ ( -a ,t.S t: y () - ~wj;J1?i!".f- ~ ~()I' L G"'JPI/Jrttrif~"'- ~ / ( II ~ / ,... 8,'// '-1t:A!/~' At/f,'c.."'-J ( , '" ..... ",)1; .~'O , ,'i'" : to, )I, ',' " " '\ ,', It v, " , " " ., ~' ,: , 'i,; '" I:; f" ,,' h f~ l.N ~I:: ~y\; [,', lj. l"" 'i~..'~ r.f,! ",(:, r~I-' , \ ~ : r,.;::~ ,I,. " f'%: I .~ I, (1." \\(1" ~~\~:,~ i:jl ~:i ' . ~~\~\. . ~ ,~,\; t;:t; frJ"".: 'i, \'\ ~.\\.J.' .' f>:',' : ' ',' , ::. I. ~ , '''. ~~ " , ~Jo \ Monticello City HaU, 505 Wllinut Street, Suite], Monticc:llo, MN' 55362-8831 . (763) 295-2711 . Fax: (763) 29$-4404,l/' '. . ,~, ':. ;- Offi~ of Public Wod:;;, 909 Golf Course R.d., Monticello, MN 55362. (7631 295-"I17r>. I;__. t"7~." ~A. ---- TDTRL P. 02 . . . H RA Agenda - 02/10/05 6. Continued - Public Hearin~ and consideration to approve. the Business Subsidv Ae:reement. a provision of the Contract for Private Redevelopment between the HRA. Tapper's Holdine:s LLC and Stratel!ic Eauipment and Supply Corporation. Consideration to adopt an Authorizine: Resolution approvinl! Contract for Private Redevelopment with Tapver's Holdinl!s LLC and awardinl! the sale of. and vroviding the form. terms. covenants and directions for the issuance of its Tax Increment Revenue Note. A. Reference and baekl!round: CONTINUED PUBLIC HEARING - BUSINESS SUBSIDY The public hearing was opened on February 2,2005, and continued to February 15,2005, for the purpose to clarify the "but for" analysis prepared by Mark Ruff, Ehlers & Associates. 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 outlincs eight elcments that must be included in thc business subsidy agrecment 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 prepared by Bill Tapper, the project appeared very tight. Eligible TIF expenditurcs outweigh the tax increment generated and the project will result in 40 new jobs Je)r 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 CONTRACT IS BEING REDRAFTED AND WILL BE AVAILABLE AT THE FEBRUARY 15 MEETING. THIS BASED ON EHLER'S ~~BUT FOR" ANALYSIS. The Contract f,)r 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 . HRA Agenda - 02/1 0/05 Julie Eddington, Kennedy & (i-ravcn, 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 lIRA shall issue and the Redeveloper shall purchase a Note in the principal amount of $ 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 unti I the earlier of maturity or prepayment. Principal and interest payments shall be made solely from "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 July 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 Ji)r 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 agreemcnt, evidcnce of construction financing, evidence for "but for" test, proof of insurances, and approved construction plans prior to issuance of the building permit. Please close the public hearing. 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 f()r Private Rcdevelopment with Tapper's Holdings LLC and awarding the sale of, and providing the form, terms, covenants and directions for the issuance of its $ Tax Increment Revenue Note, Series 2005. 2. A motion to deny approval of the Business Subsidy Agreement and the Contract for Private Redevelopment.. . 2 . HRA Agenda - 02/10/05 " _J. Amotion to table any aetion. c. Recommendation: The City Administrator and Executive Director recommend Alternative No.1 and suggest a level of TIF assistance consistent with the "but for" analysis. D. SUllportilll:! Data. Public hearing notice, Contract, resolution, TIF cash flows, eligible TIF cost estimates, Ehler's "but for" analysis, and letter from Stearns Bank. . . 3 (161.164) and therefore requireS a pUOIIC nearing. 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 VIII Operating LLC d/b/a} Charter Communications authoriz- ing operation of a cabie 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 clearly 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. I s lr lat lrs 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 ordinance is effective upon acceptance by Charger. By Order ofthe City of Monticello, Minnesota" -Clint Herbst, Mayor ' -Rick Wolfsteller, City Administrator (Jan. 20, 2005) ct- lSS '.0. ass 19a1 mal allo, 1at I .d: ;t NOTICE OF PUBLIC HEARING CITY OF MONTICELLO. MINNESOTA . NOTICE IS HEREBY GIVEN that the Housing and Redevelopment Authority in and for the City of Monticello, Minnesota, 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! SectiOfls..l1.6J.993. toJ 16J.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 tor 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) J that Imers Iduct- Idress a P.O. siness e iegal litional 55369. I that I rjury as a under 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,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, Monticello 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) Inticello ::ityHall lrmit for I garage 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 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 of the Planning Commission will be subject to the approval or deniai of the City Council and will be considered on Monday, February 28th, 2004 at l p,m., at the Monticello City Hall. _F''''; PCltch, Chief Zoning Official ..g Lake nd 10, , Lower 'ail able at II persons aproval or !Elth, 2001~ 1: ti; Ii 1';. r~ 11. ., tlil 111 2al (\'Ii M TO;' and~ r c~ Tn: 1 - - 6 . . . 1/26"005 Prop~rty Map 10 PID Owner 1 155-01B-002120 Th" H lMnoow COMp.ny lo~~_,,____,_,_,.,..,_~__ Phase 1 TOTAL Total Sq. Ft,/U"its 25,000 u.. Industrial . EHLERS William R. and Barbara R. Tapper CITY OF MONTICELLO - Strategic Equipment & Supply Corporation 25,000 sqlft Addition to Existing Industrial BUilding - TIF District #33 I Ol.tncl Typ. District Number Inflation Rata - Every Year P8y~A!i-You-Go Inttlresl Rate Note ISsued Date (Pn';!sent ValulI!I Date) Local Tax Rate. Ma)(jmul'll Fiscal Disparitj@!$ Eleclion (A-inside or B-outside) Year Districl was cenr11sd A,$Sumes Fil"!i1 lax Increment For District .Year District was modifill!ld DevElloprmtnt located in moditiM area ASsumes First T,Q,: Increment for Project Yoars of Tax Increment Assumes last Year of Tax Increment /M,E'CASIi$COW. ASSUM~OI\lS New Economic Ot:!!velopment District 33 0.0000% 6.2000% 01-Aug~5 121.9960% Poy 2005 Propos.d NIA Poy 2005 2007 NIA No 2007 8 2014 Fi!'ical Disparities Rallo Frlical Disparitil!t& Metro Wide T ax ~E1te Local Tal( RBte ~ Current Slete Wide Prop!l1y Tax Rate (uMd for totallaxl!I.!i) Market Value ~t'.ax Rate (u8l!1d for total taxes) Commerciallndu5trial Clas.!; Rlilte Fi,,' 150,000 0"., 150,000 Rl!lf'ltal Class Rat@ Residental Class Rilte F,,,t 500,000 ave, 500,000 I 0.0000% 0.0000% 121.996D% Poy 2005 Propo..' ~4.1090% Pay2004 O.052711l/111 Pay 2004 1 .50%~2.00% 1.~O% 2.00% 1.25% 1.00%-1.25% 1,00% 1.25% ....BASE VALUEilNFORMATION land Msrk:et VaJu@ 153,600 Building TQtal Market Valu@ M.\Irket Value t,694,700 t,671,900 -----.!,!'?1,900 I Cls!j!ji Ral. 1.50%-2.00% class Rate After Conversion 1.50%-2.00o/~ Ba.. Tax Capacity 36,688 36.666 Market Value S . Ft./Units 30.00 ....PROJECT.INFOR/M1l0N Tues Per Total Market $ . Ft./Unlts Tues. Value S3.70 92.406 2,621,900 92,406 2,G~1 ,900 Class Rate 1,50(1/(\-2.00% Projl;!ct Year Tax Capacity Con$trueted 51,688 2005 ~1,688 NOt8~ 1. 'ru IIIstim3tei>.Jlf'V bl:sod (In mafkl!lt "'Hue. 2. TJF run al!illoumes 100% Of the building i.$ constructed by January].. 2006 t'or P~Y;jlble- 2007. U.. Total Tox e.paeit 51,689 ~1,696 Loeal Tax ~~.city 51,688 51,688 Indul:litrial TOTAL Note: 1. Mont.tellQ doc.9 not jiilV FfSC(l1 Disparities. Fi5cal Dispariti~$ Tal( Capacity o o l.ocal T.. Ra.. 1.21996 1.21996 ',"TAX,'OALCUCATIONS Filcal State-wide Dil!ip.rities Pro~rty T8x RJIt~ Tax Rate 0.00000 0.54109 0.00000 0.54109 Local TaxB& 63,057 63.057 Fiscal Oi$parltie5 Tues o o Prvp9fed by Ehler!" After Conversion Tax ~pacity 36,696 36.686 St\:lte-wic:le Market Propt:!rty Vah..le lues l""xes --27~~-,-", 27,969 t.3~1 tlF CiI-5hIIDW '.14-QS WItt! 8 ~"r:; Page 1 of 2 Date f:iayablo 2005 Date Pa ~ble 2007 Total lS)I;e50 92,406 92,408 1/2612005 Page 2 of 2 . . EHLERS A ~>f.,',:~~~~ '~,. CITY OF MONTICELLO - STRATEGIC EQUIPMENT & SUPPLY CORPORATION . TAX'INCREMENH;ASH FLOW Ba$@ Pro)o.! Fiscal Captured Semi-Annu.l St.ete Admin. Semi-Annual Soml-Annual PAYMENT DATE PERIOD BEGINNING To< Tax Disparities Tax GrolS Ta~ Auditor at Net Tax Present PERIOD ENDING Yr5. Mth. Yr. Ca iilcit c. ~c.it Reduction Ca acit Inerement 0.36% 5.00% Increment Value y",. Mth. Yr. 0.0 02-01 2005 36.666 36.666 0.0 08-01 2005 0.0 08-01 2005 36.688 36.668 0 Present V8:lue Date. 1)..o1-0a 0 0 0 0 0.0 02-01 2006 0.0 02-01 2006 36.688 36.688 0 0 0 0 0 0 0 0.0 08-01 2006 0.0 08-01 2006 3B,66a 36.6a8 0 0 0 0 0 0 0 02-01 2007 0;0 ' :;,0",2;;(,';{ :~t200:7 :(.",': '.36;688 """1:688.' 0 15.000 9.150 (33) (456) 8.661 7.665 '.06'0. i2007 ' 0.5 oa.01 2007 3B,B8B 51,688 0 15,000 9,150 (33) (456) 6,861 15.100 1.0 02.01 2008 1.0 02-01 2008 36.668 51.6BB 0 15.000 9.150 (33) (456) B.661 22,311 1.5 OB-Ol 200B 1.5 OB-01 2008 36.688 51.6B8 0 15,000 9.150 (33) (456) 8.661 29,306 2.0 02-01 2009 2.0 02-01 2009 36.688 51.6B8 0 15.000 9.150 (33) (456) 8.661 36,090 2.5 OB-01 2009 2.5 OB-Ol 2009 36.668 51.BBB 0 15.000 9.150 (33) (45B) 8.661 42,670 3.0 02-01 2010 3.0 02-01 2010 36.68B 51.688 0 15.000 9.150 (33) (456) B.661 49,052 3.5 08-01 2010 3.5 OB-01 2010 36.68B 51,6BB 0 15,000 9.150 (33) (456) 8.661 55.243 4.0 02-01 2011 4.0 02-01 2011 3B,668 51.6B8 0 15,000 9.150 (33) (456) 8.661 61,247 4.5 OB-01 2011 4.5 08-01 2011 36.68B 51,6B8 0 15,000 9,150 (33) (456) 8,661 67,071 5.0 02-01 2012 5.0 02-01 2012 36.6BB 51.688 0 15,000 9,150 (33) (456) 8,661 72.719 5.5 08-01 2012 5.5 oa-Ol 2012 36.68B 51,688 0 15.000 9,150 (33) (456) B,661 76.196 6.0 02-01 201, 6.0 02.01 2013 36,688 51,B88 0 15,000 9,150 (33) (456) 6,661 83.512 6.5 08-01 2013 6.5 OB-Ol 2013 36.8aa 51.6a8 0 15.000 9.150 (33) (456) B.661 8B,667 7.0 02-01 2014 7.0 02-01 2014 36:685 51.668 0 15,000 9,150 (33) (456) a.881 93.666 7.5 08-01 2014 7.5 08-01 2014 3668B 51.8BB 0 16.000 9150 33 456 6.881 9B.515 6.0 02-01 2015 louis 146 395 527 7,293 "a,575 P!"8:!ii!!!nt Villue pate. 8-01.D5 107301 375 5,185 9a,515 Note: 1. State Auditor pnymer'lt is. pnsed on 1st halt, pny 2004 <actLlal and may mt.ro.aM ovN t~m\ 01 r,ji:'Uricl. 2. A$!i'iUm4'tS a~velopment IS cQostruc:.ted in 200fi. ~5s6ssed in 2006 and first incremem is p,pid in 2007. 2, Amount of increm~nt will v~ry dep~nQing upon lTl4lrket v~l~e. tax ~tes, i+la!;i!;i: I'1lles, CQn5truCtjon !;It'I1p.[h,ll~ and Inflation on market valu.;;. 4, lnfl;i,ltiorl on tax ratti's Cannot be t:.ap~Llred w TAX RATF.:~ COUU) DECLINE S. tlF doe~ not cotpture 5tate wide property taKe-s Or' maril.et val~E! property tclJr;iHi. 6, AssUlnes inflationary irICr'1tI'i'if!nt in lOO&. . Un". 'fax IlIcl'C1tl/,!n1lLQI!n~ 'l'nl:11 Pl"jl'lcri~'TIIXl'N h.'s:( S1111cl'ax Ic~s Mark(" Vnllll.: Tn\. Ic.~s [\:i~ljllj! T;I\:('~ AnnulIl TIIX 11H~r'i!t'lII~II. Fjll"II~~i'IU BLlT '''fORA: AtNSI'S n.-W6 _17,t)MI -I,JHI -...-t7~)I. Eslinlllte 1~.21)<) less 1111\' Ktlrnili, Fel'~ Gllrrlllnl M;jIIItI:l'I Value ~!.l New Markel Valul? - E:;l Dill~~fll;:~ PI~~~1'I1 Value or Ta)( Inaement Pifll'!t'~11C~ V,llllJe Ltk~IV to U:curWitroul Tax Inaemslll I~ ll:l~~ 11'1an 1,871,000 <1,1193,800 2,621,900 _._.~~ 2,523.385 2.523,365 . P'~pared by Ehl@ors rlf= Cashflcw '.14.05 wIth Ilyeilrli . r tP o U . . ,,/\ VI ~ _/ Y do .' ..> ---- \J) t.i .s r:: o 13 2_ ~& a"g III 8~ ca ..".. (I) e coo.. ~.!2 Jj ~ . .. u., z .'11) tlju~ 10 co OIl ?;'u~ . l: 0... ll....JC- o g In N o vA 6 /' tJ 6' "./ ..~ r:\ ~~~~~~~~~~e~~~~~~~ o~o~~~~d~ddci~o~6N~ ~~-~~~~~~~~~~~~ww~~ ~ 888888888888S88888 ~~g~~~~~~~~~~~~~~~ . .t\!. _ _ _ _ _ _ _ _ _ _ . _ . . . c~~~~~~;~a~~~~~~re~~ =.~~~~~~ ~ ~ 0~~~ " <nUl 09 ~ OOOOCOOOOOOOOOOOQ~ . QQQQQQQ~COOQOCOOOO 1~~g~~~.~~~.~.~~.~~ ~~T y~~~ N~~~~rl;{rl~~ =~~ ~~N. f!~ ~~~ ~~~ c............ Mo....__ _ ~ UI:J.(I). :::l ..,.... Vt' ::!! ~=#~===~~~:::===:=~ ~~g~~~~~~~~~~~~w-~ 'f ID .. 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A) Met with Dahlheimer's and Streeter on February 11 about Otter Creek site for development on their distribution facility. Interested in corner site, City encouraging side lots, No final decisions as to Monticello site. H) Hrad Johnson and a Mexican restaurant owner stopped by City Hall. Brad had him in town looking at Landmark Square II site. They have 12 restaurants in MN and numerous restaurants out east. Would be full-service restaurant. C. 30,000 sq ft manufacturer user looking to construct. D. EDA approved Tapper's loan of$200,000. E. Herbst, Mayer, O'Neill, Wojchouski, and myself met to discllss downtown Monticello. Have meeting scheduled with Elhers as an educational and idea exchange on February 17. F. Meeting scheduled with A VR for February IS. G. Marketing Committee met February 10 and have follow-up meeting February 24. H. I'm out of the oflice February 28 and will return March 14.