HRA Agenda 01-07-2004
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AGENDA
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, January 7, 2004 - 6:00 p.m.
505 Walnut Street - Bridge Room
Comm issioners:
Chair Steve Andrews, Vice Chair Bill Fair, Darrin Lahr, Dan Frie, and Brad
Barger.
Council Liaison:
Roger Carlson.
Staff: Rick Wolfsteller, Ollie Koropchak, and Angela Schumann.
Guests: Barry Fluth, Masters Fifth Avenue and Brad Johnson, Lotus Realty Services
Mark Ruft~ Ehlers & Associates
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Call to Order.
Consideration to approve the December 3, 2003 liRA minutes.
Consideration of adding or removing items from the agenda.
Consent Agenda.
Consideration to approve and authorize execution of the Contract for Private Redevelopment
between Masters Fifth Avenue and the HRA for Landmark Square Phase II.
Consideration to discuss Joint Meeting for Comp Plan Amendment for Block 52.
Consideration to authorize second notice of administrative costs for non-certified TIF District No.
1-32.
8. Consideration to authorize payment of liRA bi lis.
9. Consideration of Executive Director's Report.
10. Committee Reports.
A. Small Industrial Group
11. Other Business.
12. Adjournment.
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MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, December 3, 2003 - 6:00 p.m.
505 Walnut Street - Bridge Room
Commissioners Present:
Vice Chair Bill Fair, Darrin Lahr, and Dan Frie.
Commissioners Absent:
Chair Steve Andrews and Brad Barger.
Council Liaison Present:
Roger Carlson.
Staff Present: Ollie Koropchak.
1. Call to Order.
Vice Chair Bill Fair called the HRA meeting to order at 6:05 p.m.
2. Consideration to approve the November 5, 2003 HRA minutes.
DAN FRIE MADE A MOTION TO APPROVE THE NOVEMBER 5, 2003 HRA
MINUTES. SECONDED BY DARRIN LAHR AND WITH NO CORRECTIONS OR
ADDITIONS, THE MINUTES WERE APPROVED AS WRITTEN.
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Consideration of adding or removing items from the agenda.
Executive Director Koropchak requested Item No.7 be removed from the agenda at the
request of Developer Mike Cyr. Additionally, Koropchak requested Item No. 9C be
placed under Item No. I I, Other Business.
4. Consent A~cnda.
None.
5.
Consideration to review and approve the Contract for Private Development bet\veen
Masters Fi fth A venue and th~ HRA for Landmark Square Phase II and to authorize
execution of th~ Contract.
Brad Johnson, Lotus Realty Services, informed the HRA Office that he nor Barry Fluth
would attend the HRA meeting of Decemb~r 3 as their immediate efforts are to
concentrat~ on revising the Landmark Square II site plan. The Planning Commission
approved the Conditional Use P~rl11it to allow ground level residential within the CCD
subject to staff comments. OAT recommendation. and the eleven conditions in Exhibit Z.
Therefore. the 1.IRA \vill review the Contract as prepared by Attorney Bubul but delay
approvalulltil January.
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BRA MINUTES - 12/03/03
Highlights of the Contract reviewed by the HRA: 1. Definition ofImprovements; 2.
Administrative Cost Estimates; 3. Land Acquisition Costs; 4. Conditions required for
disbursement of $157,500 "First Disbursement"; 5. Conditions required for disbursement
of $125.000 "Second Disbursement" including deposit of irrevocable bank letter of
credit; 6. No disbursements will be made after June 30, 2004; 7. First Disbursement
treated as loan and repaid to HRA at 6.5% interest beginning August 1, 2006 and ending
Febmary 1.2022: 8. If on the Payment Date there is an insufficient amount of available
tax increment to make payment, Developer agrees to pay difference between payment
schedule Exhibit B and available tax increment received by HRA; 9. Constmction Plans
approved by Building Official and HRA; 10. Commence constmction of duplex by May
1, 2004 and substantial completion of the minimum improvements by October I, 2006;
1 I. Certificate of Completion; 12. Assessment Agreement - minimum market value of
the minimum improvements as of January 2. 2005 through maturity date is $ 1,850.000;
13. Parties recognize that once a unit is completed and sold; the Assessment Agreement,
review of taxes, and right to collect delinquent taxes shall not apply to that residential
unit within the minimum improvements; 14. The Assessment Agreement shall include a
termination provision: 15. Evidence of mortgage financing; and 16. Assessment
Agreement. The commissioners saw no need for adjustments or changes.
In order to meet the required June 30, 2004. disbursement date for the $125.000 (Second
Disbursement) and for consistency between the motion of the HRA and the Contract. the
commissioners \vere asked to amend the HRA motion of October 1. 2003 to include
acquisition. DAN FRIE MADE A MOTION TO AMEND THE OCTOBER 1. 2003
MOTION TO READ: TO OFFER TIF ASSISTANCE IN AN AMOUNT NOT-TO-
EXCEED $125.000 FOR COSTS ASSOCIATED WITH ACQUISITION. DEMO.
ELECTRIC POLE RELOCATION, AND UTILITY AND PARKING LOT
CONSTRUCTION ASSOCIATED WITH PHASE II OF LANDMARK SQUARE.
DOLLARS TO BE EXPENDED FROM TIF DISTRICT NO. 1-22 FUND. SECONDED
BY DARRIN LAI.IR AND WITH NO FURTHER DISCUSSION, THE MOTION
CARRIED.
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Continued - Consideration to hear updates on potential TIF District No. 1.12 projects:
A.
Redevelopmcnt of a portion of Block 52 and update on Planninl,! Commission
meetin!! fiJr Comp Plan Amendment.
Koropchak updatcd the commissioners on the action takcn by the Planning
Commission on December 2.2003. The Comp Plan amendment for Block 52 was
denicd at thc Planning Commission meeting on a 2-1 vote and moves t(mvard to
the City Council on December 8, 2003.
Given the Planning Commission outcome. Developer Steve Johnson would not
attend the liRA meeting and informed Koropchak that all was not lost at the
Planning meeting. Walgreen' s is ready to go and the other parcels such as
Kjellberg is at the option of the HRA for redevelopment. Lahr felt the same as
before, that in the future a Block 52 project consistent with the Comp Plan will be
feasible. Much like Elk River. Koropchak reminded the commissioners of their
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BRA MINUTES -12/03/03
B.
options for TIF District No. 1-22 or Block 52:
1. Authorize or not authorize the use of tax increment.
2. OtTer to buyout Johnson and later solicit an RFP (HRA obligated to
relocation benefits),
No additional projects, pay off the bond proceeds early. Perhaps establish
a new district in the future.
4. Agree or not agree to sell the HRA lot.
5. Lobby to extend the tive-year activity rule for TIF District No. 1-22.
No action taken.
Redevelopment of a portion of Block 36 - Although Bruce Hamond requested to
be on the HRA agenda, no one appeared before the HRA. Koropchak reported
having talked with Cindy Hamond that afternoon, Bruce was in Atlanta and Cindy
indicated Mike would be attending the meeting. No discussion or action
required.
Discussion and action whether to lobbv for extension of the 5.vear activity rule
for District No. 1-22.
DARRIN LAI-IR MADE A MOTION OF NO INTEREST TO INTRODUCE A
BILL IN 2004 REQUESTING THE EXTENSION OF THE 5- YEAR ACTIVITY
RULE:: FOR TIF DISTRICT NO. 1-22. SECONDED BY DAN FRIE AND
WITH NO FURTHER DISCUSSION, THE MOTION CARRIED. Reasons: 1.
The environment of the local legislators and downtown property o\vners has not
changed. 2. It was doubtful a bill would be enacted prior to issuance of
permanent bonds on May 5, 2004.
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7. Consideration to discuss concept for development of Ruff Auto parcel. Requested bv
Mike Cvr.
Removed.
8. Consideration to authorize pavment of HRA bills.
DARRIN LAIIR MADE A MOTION TO AUTHORIZE PAYMENT OF TI-IE HRA
MONTI-IL Y BILLS. SECONDED BY DAN FRIE AND WITH NO FURTHER
DISCUSSION. THE MOTION CARRIED.
9. Consideration of Executive Director's Report.
With Item No. 9C placed under Item No. 1 L the commissioners accepted the Executive
Director's report as written. Additionally. Koropchak inquired as to the status of the
request by the HRA to hold a \vorkshop with the City Council and Planning Commission.
Council Liaison Carlson informed the commissioners he has addressed this with the
Mayor.
10.
Committee Reports.
A. Industrial Development Group - Dan Frie reported a non-combining Letter of
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HRA MINUTES - 12/03/03
B.
Intent with terms and conditions to purchase approximately 114+ acres of Otter
Creek Crossing was prepared by Administrator Wolfsteller and submitted to John
Chadwick the Wednesday prior Thanksgiving. Koropchak added that the IDC is
developing bullet points and thereafter a couple members volunteered to lobby the
Council members. Frie volunteered to lobby on behalf of the HRA.
Marketing Subcommittee - Darrin Lahr reported the Marketing Committee agreed
to partner with the Chamber on a billboard promoting the Trumpeter Swans. The
billboard located along 1-94 by Albertville will be ready around the first week in
December. This a three-month trial.
11. Other Business.
The commissioners reviewed a letter to the City Administrator requesting seven
decertified TIF Districts be closed-out. This a recommendation of the HRA financial
consultants, Ehlers & Associates. Each district's administrative expenses were verified
and adjusted if needed to meet the 10% actual increment expenditure requirement. The
total amount of tax increment to be returned to the County is $246,002. Additionally, the
letter request that upon the City receiving their share of the reimbursement from the
County, this amount be deposited in the Industrial Development Reserve Fund. The
commissioners were asked to authorize this administrative task.
DARRIN LAHR MADE A MOTION TO AUTHORIZE CLOSE-OUT OF
DECERTIFIED TIF DISTRICT NOS. 1-7. 1-8, 1-9. 1-11. 1-12. 1-)(i. AND 1-18 AND
RECOMMENDED THE REIMBURSED DOLLARS FROM THE COUNTY BE
DEPOSITED IN TI--IE INDUSTRIAL DEVELOPMENT FUND. DAN FRIE
SECONDED THE MOTION AND WITH NO FURTHER DISCUSSION. THE
MOTION CARRIED.
Dan Frie agreed to serve another 5-year term as commissioner of the HRA. His name
will be forwarded to the City Council for appointment in January.
12. Adjournment.
DARRIN LAHR MADE A MOTION TO ADJOURN THE HRA tvIEl:TING.
SECONDED BY DAN FRIE AND \VITI-l NO FURTHER BUSINESS. THE HRA
MEETING ADJOURNED AT 7:20 P.M.
HRA Vice Chair
Executive Director
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HRA Agenda - 01107104
5.
Consideration to aoprove and authorize execution of the Contract for Private
Redevelooment between Masters Fifth Avenue and the HRA for Landmark Square II.
A. Reference and baeke:round:
At the December HRA meeting, the eommissioners reviewed the tcrms and conditions of the
Contract and saw no nccd to adjust or amend the Contract given thc current proposcd project
(See minutes of Dccembcr 3, 2003.) Because the dcveloper was concentrating on thc
revisions to thc site plan, they did not attend the HRA mecting and requestcd thcir comments be
deferrcd til the January l--IRA meeting.
With the rcvisions made by the Planning Commission and staf1~ the "minimum improvements" as
defincd within thc Contract nced to be changcd from II units, including one duplex and 9
singlc-family owner-occupicd homes to II units, including two duplexes and 7 single-family
owner-occupied homcs. How does the HRA feel about that? Will this ehan~e the
minimum estimated market value of the total units within the Assessment A~reement?
Also confirm construction commitment date for the first duplex. The minimum
improvements changed in order to meet the conditions outlincd by the Planning Commission
such as setbacks, turn-around and site circulation and trade-off for morc grecn space.
Gcnerally speaking a duplex consists of one owner-occupied\mit with one rental unit or two
rcntal units. I belicve the square footagc of thc single-family owncr-occupied units were
cnlargcd, thc lOnon-residential parking stalls was reduccd to 8 stalls, and thc developer yct to
submit landscape and drainage plans for approval.
The dcvelopcr will add comments at thc mecting.
B. Alternative Action:
I. A motion to approve and authorize cxecution of thc Contract for Private
Rcdevelopment between Mastcrs Fifth A venue and the I IRA for Landmark Square
Phase" subject to the following changcs ............................
2. A motion to deny approval ofthc Contract fix Private Redevelopmcnt bctween
Masters Fifth Avenue and the HRA for Landmark Square Phase 11.
3. ^ motion to table any action.
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HRA Agenda - 01/07/04
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Recommendation:
Given the developer and county assessor agree to keep the estimated market value of the total
units at $1,850,000 as of January 2, 2005, the City Administrator and Executive Director
recommend alternative no. 1.
D. Supporting Data:
Revised site plan and excerpts from the Contract.
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ARTICLE I
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Definitions
Section 1.1. Definitio~. In this Agreement. unless a different meaning clearly appears
from the context:
"Ace 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.
.. Authori ty'. means the Housing and Redevelopment Authority in and for the City of
Monticello, Minnesota.
"City" means the City of Monticello. tvlinnesota.
'"Certificate of Completion" means the certification provided to the Dt:veloper pursuant to
Section 4.4 of this Agreement.
"Construction Plans" means the plans. specifications. drawings and related documents on
the construction work to be performed by the De,c1oper on the De,e1opment Property which (a)
shall be as detailed as the plans. specifications. drawings and related documents which are
submitted to the appropriate building officials of the Authority. and (b) shall include at least the
following: (I) site plan: (2) foundation plan: (3) basement plans: (4) floor plan for each floor;
(5) cross sections of each (length and width): (6) e1e\.ations (all sides): (7llandseape plao: and
(8) soch other plans or supplements to the foregoing plans as the Authority may reasonably
reqoest to allow it to ascertain the nature and quality of the proposed construction work.
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"County" means the County of Wright. Minnesota.
.'Developer'. means Masters Fifth Avenue. Inc.. a Minnesota corporation. or its permitted
successors and assigns.
"Development Property'. means the property legally described at Exhibit A. After the
construction of the Minimum ImprO\.ements. the term shall mean the De,elopment Property as
improved.
..Event of Default" means an action by the Developer listed '" Article IX of this
Agreement.
"First Disbursement" has the meaning provided in Section 3.4(a).
"Holder" means the owner of a Mortgage.
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"Material"' means any effect or change which significantly alters the intended use of the
Development Property. or increases Or decreases the costs of any individual item of the
Minimum Improvements by more than $100.000.
"Maturity Dale" means the dale on which the Principal Amount and accrued interest on
Ihe First Disbursement has been paid in full or defeased in accordance with the tenns of Section
3.4(d) hereo(
k "Minimum Improvements" means the construction on the Development Property of I I
housing units. including one duplex and nine owner-occupicd single-family homcs.
"Land Acquisi-lion Costs" has the meaning provided in Section 3.4.
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"Mortgagc" means an)' mortgage madc by the Developer which is secured. in whole or in
part, w.ith the Devclopment Property and which is a pemlitted encumbrance pursuant to the
provisions of Article VIII of this Agreement.
"Project" means Redevelopment Project No. I.
"Project Area" means the real property located within the boundaries of the Project.
"Redevelopment Plan" means the Authority's Redevelopmcnt Plan for Redevelopment
Project No.1. as it may be modified.
"Second Disbursement"' has the meaning provided in Section 3.4(b).
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"State" means the State of Minnesota.
'Tax Increment" means that POrtion of the real property taxes which is paid with respect
to the Development Property and which is remilled to the Authority as tax increment pursuant to
the Tax Increment Act.
"Tax Increment Act.. or 'TIF Ace' means the Tax Increment Financing Act. Minnesot;l
Statutes. Sections 469.174 to 469. J 799. as amended.
1-22.
'T ax Increment District" or 'TI F District" means Tax Increment Financing District No.
'"Tax Increment Plan" or 'TIF Plan" means the tax increment financing plan for Tax
Increment Finoncing District No. 1-22. as apprO\.ed March 10. 1997. and as it has been and may
be fUrther amended.
"Tax Official" means any COUnty assessor; County audilor: County or State board of
equalization. the commissioner of revenue of the Slate, or any State or federal dislrict court. the
tax COUrt of the State. or the State Supreme COUrt.
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"TIF Bonds" means the City's $2.150.000 Taxable General Obligation Temporary Tax
Increment Bonds. Series 2001. and any bonds issued to refund those bonds.
"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 govemmental unit (other than the
Authority in exercising its rights under this Agreement) which directly result in delays.
Unavoidable Delays shall not include delays in the Developer's obtaining of permits or
govemmental approvals necessary to enable construction of the Minimum Improvements by the
dates such construction is required under Section 4.3 of this Agreement.
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ARTICLE III
Ac uisition of Pro ert,", Financial Assistance
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Section 3. I. ~ tatus of the Development Propertv. As of the date of this A greemcnt. thc
Developer has either purchased or entered into a purchase agreement with a third party for all of
the parcels comprising the Development Property. The Authority shall have no obligation to
purchase the Development Property or any portion thereof The De"e1oper shall. at its cost,
obtain appro,'al by the City of any plat and planned unit development required by the City in
connection with de"elopment of the Development Property in accordance with this Agreement.
Section 3.2. Soil Conditions. (a) The Developer acknowledges that the Authority makes
no reprcsentations Or warranties as to the condition of the soils on the De"elopment Property or
its fitness for Construction of the Minimum Impro"ements or any other purpose for which the
Developer may make use of such property. The De,'eloper further agrees that it will protect.
indemnily. defend. and hold harmless the Authority. the City. and their governing body
members. officers. agents. and employees. from any claims or actions arising out of: (i) the
presence. if any. of hazardous wastes or pollutants on the Development Property. including but
not limited to toxic or hazardous substances or Wastes. pollutants. or Contaminants (inclUding.
without limitation. asbestos. urea fomlaldehyde. the group of organic compounds known as
polychlorinated biphenyls. petroleum products including gasoline. fucl oil. crude oil and ,'arinus
constituents of such products. and any hazardous substances as defined in the Comprehensive
Environmental Response. Compensation and Liability Act of 1980 C'CERCI.A ") 42 U .S.c. ~~
9601-9657. as amended): (i i) the status of the Development Property as a treatment. storage. or
disposal facility within the meaning of or other Slatus of the Developmcnt Property within the
ambit ofthc Resource Consen.ation and Recovery Act of 1976 C'RCRA"). 42 U.S.c. ~ 6901 et
~.. or any similar lederal or state law or regulation. or local ordinance: (iii) a release or
threatened release of toxic or hazardous Wastes or substances. pollutants or Contaminants. from
the Development Property within the meaning of. or other status of the Development Property
within the ambit of CERCLA. or any similar federal or state law or local ordinance. (iv) the
discharge of pollutants or emuents into any Water source or system or the dredging or filling of
any waters or the diSCharge into the air of any emissions. that. as the case may be, would require
a penn it under the Federal Water Poll ution C onlro I Act. 33 US C. ~ 125 I et ~.. or the Clean
Air Act. 42 U.S.c. ~ 7401 et~.. or any similar federal or state law or local ordinance: (v) any
otber claim or cause of action under RCRA. CERCLA. or any other federal. state. or local
em'ironmental statute. regulation. ordinance. or other em'ironmental regulatory requirement.
including but not limited to the Minnesota Em'ironmental Response and Liability Act. Minnesot~
Statutes. Chapter 115B C'MERLA") and the Minnesota Petrolcum and Release Cleanup Act.
Minnesora fuatute~. Chapter //SC.
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(b) The Developer's obligations under this Section 3.2 shall sun'ive tennination of
this Agreement for any reason. including but not limited to by reason of any tililure by either
party to satisfy the conditions precedent set forth in Section 3.8.
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Section 3.3. Payment of Administrati\"e Costs. The Deyeloper agrees that it will pay
upon demand by the A uthori ry. Admi ni strati ve CostS (as hereafter deli ned). For the purposes of
this Agreement. the ternl ""Administrative Costs"" means out-of-pocket costs incurred hy the
Authority and attributable to or incurred in connection with the negotiation and preparation of
this Agreement and other documents and agreements in connection with the development
contemplated hereunder. Out-of-pocket Administrative Costs shall be evidenced by invoices.
statemen ts. or other reasonable written e,idence of the costs incurred by the A utbority. As 0 f the
date of th is Agreement. the De' eloper has deposited $ 5 .000 with the Authority ($2.000 being the
amount remaining from a prior deposit in connection with a pre,ious redevelopment and $3.000
deposited under the Prcliminarv Agreement) to be applied toward Administrati\'e Costs, If the
Authori t y' s actual Admin istrati \'e Costs exceed the amount on deposit. R edc\'e1 oper remains
obligated to pay such additional aml'lmts upon demand by the Authority. If the Authority's
actual Administrati\'C Costs are less than the amount on deposit. the Authority shall. upon
demand bv the De, eloper. returned such excesS to the Developer. but no earlier than the date on
which the Developer recei \'es a C erti fr cat e 0 f C omp letion for all the M in imum Improvements
..J. pursuant to Section 4,4 of this Agreement. As of the date of this Agreement. Administrati\'e
-e- Costs are estimated to total approximately S '--:--- ;,000 but the Authority makes no "arranty
that actual Administrati\'C Costs will not be more or less than this amount. This Section 3.3 shall
survive any termination of this Agreement for any reason.
Section 3.-\.. Land Acquisition Costs. In ordt:r to make dewlopment of the Minimum
~ h;,pro,cmentseconomically feasible. the Authority "ill reimburse the De,'e1oper for up to
S,_l'J_''''''CSC.O''O ot the De\eloper s cost 01 acqUlSlllOn for any portion 0\ the Development
Property acquired by Rede\'eloper alicr the date of this Agreemcnt (the ""Land Acqnisition
Costs"" ), The parties ackno"led ge that the All thori t y "ill tinance s lie h rei m bursement '" th
proceeds of the TIF Bonds. all in accordance \vith the follo\\'ing terms:
'f< I a) The Authority wi Il disburse $ I '4.,,"0 I 57500 (the "" First Di sbursemen t") upon the
Developer"s satisfaction of the following conditions:
ei) receipt and appro\'al by the Authority's executive director of a copy of
purchase agreements for the parcels of the Development Property to be reimhursed and a
copy of the certificate of value from closing on that acquisition. showing land
Acquisition Cost in at least the amount to be disbursed:
(ii) the Authority having approved Developer's financing for the Minimum
Improvements in accordance with Article VII:
(iii) the Authority ha\"ing approved construction plans for the Minimum
Impro,ements in accordance with Article IV. aod the City having approved any plat and
planned unit development necessary to construct the Minimum Impro,'ements:-
(i\") the Developer haying demolished all existing structures on the Development
Property. cleared the site. and commenced construction of at least the duplex portion of
the Minimum Impro"ements (for the purposes of this Section. "commencement"" means
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installation of footings. foundations or other "isible improvements beyond excavation .
and grading):
[Iv) Thc Developer must hoy'e obtained approval from the AUlhority and thc City
of a parking and traffic plan satisfactory in the sole respectiy'e judgment of the Authority
and the City. such plan to provide for at least adequate unrestricted parking spaces on the
block on \\hich the Deyelopmem Property is located and fully executed easemems and
other agreemems allowing for the construction. opcration. and maimenance of the
parking spaces and egresses and ingresses to the block on which the Developmem
Property is located: ] and
,,1/ (b) The A uthori ty \\i II disburse $115.000 (the "Second Disbursemen f") upon the
./J' Developer's satisfaction of the following conditions:
(vi) there is no uncured Event of Default.
(i) the conditions set forth in (a) were and continue to be met:
(ii) receipt and approval by the Authority's executive director of a copy of
purchase agreemems lor the parcels of the Developmem Property to be reimbursed and a
copy of the certiticate of value from closing On that acquisition. showing land
Acquisition Costs in at leas! the amount to be disbursed. and ill exees., of the amoum
disbursed under paragraph (a). and
(iii) the relocation of the utility pole on the Developmem Property has occurred
to the satisfaction 'ofthe City: anJ
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(iv) the duplex portion of 'he Minimum Improvemems has been substantially
completed, as determined in accordance with Article IV.; and
(\) the R e.cleye '2per has deposit~c1wi I h t hc Authority uni rrcvoca b Ie. ba nk I eller of
credit in the amoum of SI15,QO(J.in a fOlllhcceptable 10 Jhe Authority, .or alternmi'e
securi Iy accep'able . to. the A uthori 'y,. \\:hich ./cue,. or cred it_ secures Bedcvclo per' s
on Ii gat ion to e om p I cte constructi 011.0 f aiL the M i nill1 umI 01 PJovem ems as req u ired un,jer
Article IV hereof
(c) Notwithstanding anything to the contra!}' herein. no disbursements will be made
under this Section atier June 30. 1004. and if the condit inns lor making either the First
Disbursemem or the Second Disbursemem are not met by that date. the Authority has n~tno
fUrther obligation to reimburse Developer for any undisbursed amoums under this Section.
(d) The total principal amoum of the First Disbursement (the ,. Pri nc i pal Amoum'"J shall
be treated as a loan. repayable to the Authority in accordance with the following tenns and
conditions:
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(i) The Principal Amount shaH be repaid. together with interest thereon on at ::,..'a
rate of inh:n:st that is the greater of rate of 6.5% per annum or the rate retkcting the tfue
interest cost of ll1ng.term honds i_ssued to reJund thetcmporary lP: Bl)nds, accnlell from
the date of the First Disbursement ("First Disbursement Date"). in semi-annual
instal\ments payablt:: on (:ach August 1 and February 1. commencing l'd-,p.ldF~ :\ugust 1.
:;:(i~j'72006 and continuin!:!. throu\!h"\w:!ll~IFehrui.\f\' l. 202-12022 (each a "Payment
~ ~ -" -' .
Date..).-..... hi.:\t. The payments shall be in the amounts set forth in Exhibit B hereto.
p"" ided that up'''' i "uance 0 I' the I nng -tcnll TI F Bonds, C:X h i bi t Il "ill he reyi scd '"
n.:l1ect thL' adjustment in interest rate if.the truc_ interest cost l.'n the Tl1--" Bonds is grea\l.:r
than 6.5r~.o.
(ii I Payments shall be applied first to accrued interest and thcn to unpaid
principal. Interest accming from the First Disbursement Date to the first payment datc
"ill be compounded semiannually on each February 1 and August 1 and added to thc
Principal Amount.
(iii) The panics agree and understand that the amount of Ayailahle Tax
lncrement receiwd by the Authority as of any Payment Date shall be credited as a
payment by and on behalf of the DC\e1opcr under this Section, The tenn "Ayailuble T"
Increment"" means 90% of the Tax Increment with respect to the Development property
as calculated by the County and paid to the Authority during the six months preceding
any Payment Datc.
(i y) I I' on any Pay ment Date the amount 0 I' A yai lab Ie TaxI ncrcmeot is
insuflicient to pay the amount due on that Payment Date. the Deycloper shall pay to the
Authurity. within 10 days of written demand by the Authority. an amount equal to the
difference between tht: amount payable under Exhibit B and the Available Tax lnnement
actually received by the Authority as of that Payment Date, The Devcluper hereby
acknowledges that the amount of .t\V'ailable Tax Increment is subjeet to change in State
law and calculation by the Statc and County and that any such yariation shall not impair
thl.' Authority's ril:.!-hts or the Developer's obligations hereunder. The Developer agrees
and understands thut A yai lab Ie T" Increment is subject to calculati on by the County and
change in State law, The Developer further agrees and understands that estimates of
Available Tax Increment pro\ided hy the Authority and its agents. oflicers. or employees
are estimates only and not intended for the Developer's reliance.
I") The A Ulhori ty may. at its opt ion. treat any A ya i I ab Ie T as Increment recei yed
in excesS of the amount due on any Payment Date as a prepayment of the Principal
Amount and interest thereon. proYided that such prepayment shall not alter the timing or
amounts othe", ise due as set forth in Exhibit B, The Authority will notify the Deyeloper
in writing promptly after electing any such prepayment.
( "i) The A uthori t Y makes no warranties or representations that A "ai lab Ie Tax
Increment will he sufficient to pay the Principal Amount.
.
.
f
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1 1
E!\.IT -2~()63(h I
MN190-111
Section 3.5. Use of Tax Increment. Except as sel forth herein, the Authority shall have .
00 obligation to the Developer with regard to its use of Tax Increment and may use Tax
Increment and for any lawful purposes. whether set fonh herein or othern'ise.
.
.
EMT -240630\' I
MN /90-//1
12
ARTICLE IV
.
Construction of ;\1.inimum Impronmcnts
Section ~.l. Construction of Impro\'ements. The De\'elop~r agrees that it \\-ill construct
the Minimum hnpro,'ements on the Development property in accordance with the approved
Construction Plans and will operate and maintain. prese.....e and keep the Minimum
hnprovements or cause them to be maintained. prese...,ed and kept with the appurtenances and
e,'e,,' part and parcel thereof. in good repair and condition. The Authority shall not ha\e any
ohligation to operate or maintain th~ !\linimllm Imprl)\~ments.
Section ~.2. ConstrUl:tion Plans. tal Before the First Disbursem~nt of Land :\cqllisition
Costs undcr Section 3,-1 hereof. the Developer shall submit to the Authority Constntction Plans,
The Construction Plans shall pro' ide for the constntction of the Minimum Improvements and
shall be in conformity with the Redevelopment Plan. this Agreement. and all applicable State and
loea I laws and reg ulati ons. The Authority wi II appro \'C the Construction Plans in \\ riti ng if: Ii J
the C onslructi on Plans con form to the term's and conditions of this Agreement: Iii) the
Construction Plans conform to the goals and objectives of the Redevelopment Plan: liii) the
Construction Plans conform to all applicable fcderal. Slate and local laws. ordinances. rules and
reg ulations: (i,) the C onstrUC t ion Plans are adequate to prlw ide for construct ion u f the "1 in i m um
Impnwemen": ('I the Construction Plans do not pnnide for expenditures in evcess 1\1 the funds
",ailable to the Dewloper from all sources for construction of the Minimum Impro,'cmen": and
(\'i) no hent of Default has occurred, Appro\~ based upon a re\iew by the Cit"s
Building Onieial of the Coustruction Plaus, . No aer.ro,al by the Authorit\ shall relie\C the
De\eloper 01 the obligation to comply with the terms of this Agreement or of the Rede\elopmeo'
Plan. applicable federal. state and local laws. ordiOilllces, ru\cs and regulations. or to construct
the Minimum Improvements in accordance therewith. No approval by the Authorit' shall
constitute a waiver of an hen' of Default. If appro,'al of the ConSiniCtlon Plans is requested by
the Deyeloper in writing at the time of submission. such Construction Plans shall be deemed
appruyed unkss rejected in writing by the Authority. in whole or in part. Such rejecti,ms shall
set forth in detail the reasons therefore. and shall be made within 10 days atier the date of their
receipt by the Authority, If the Authority rejects any Construction Plans in whole or in part. the
Developer shall submit new or corrected Construction Plans within 10 days atier written
noti f1cat i 011 to the Deye loper of the rej ection, The pro visions 0 f th is See ti on rei at i 11 g to approva\.
rcjectinn and resubmission of corrected Constrnction Plans shall continue to apply until the
Construction Plans have been approved by the Anthority. The Authority's approval shall not be
unreasonably withheld. Said approval shall ennstitute a conelusive determinatinn that the
Construction Plans (and the Minimum Improvements constructed in accordance with said plansl
COIll 1'1 Y to the A uthori ty' s satisfaction with the pro,'i sions 0 f this A greolllcnt relating thereto,
(bl If the Developer desires to make any Material change in the Construction Plans
atier their app"",al by the Authority. the Developer shall submit the proposed change to the
Authority for its approya\. If the Constntction Plans. as modi lied by the proposed change.
conform to the requirements of this Section -1.2 of this Agreement with respect to such
previously approved Construction Plans. the Authority shall approye the proposed change and
.f
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E\tT-::!-lOh30\ I
t\I" \'lO-lll
13
noti(l. the Developer in \\Titing of its approval. Such change in the Construction Plans shall. in .
any e'.enl. be deemed approved by the Authority unless rejected. in \\hole or in part. by \\Tillen
notice by the Authority to the Developer. selling forth in detail the reasnns therefor. Such
reject ion shall be made with i n ten (I 0) days atier receipt n f thc notice 0 f such change. The
Authori ty. s appro I .al of any such change in the Construction Plans \\i II not be unreasonably
withheld.
Section -1.3. ~ommcnccment and Complction of Cons!ruction. Subject to LTnaloidable
Delays. the Developer shall commence construction of the duplex Portion of thc Minimum
* Impro\"emems by May L 200-1. and shall sUbstantiall,. complete the cons!ruction of all the
Minimum ImprU\.cments by October L 2006. All work with respect to the Minimum
\ Jmpr",ements to bc eons!ructed or prOl.idcd by the Del.eloper 00 the Delelopment Property
C shall be in conformity with the Cons!ruction Plans as submilled by the DC\.e1nper and apprOled
by the Authority.
The Developer agrees for itself. its successors and assigns. and e,'CrY successor io interest
to the Development Property. or any part thereof. that the Developer. and such successors and
assigns. shall promptly begin and diligently proseClHe to completion the developmelll of the
Development Property through the constntction of the Minimum Improvements thereon. and that
such cons!ruction shall in any event be commenced and completed within the period specified in
this Section 4.3 nf this Agreemenl. The obligation tn construct the Minimum Improvements in
accordance with this Section touches and concerns the land. and shall run with the property and
be binding Upon all Successors and ass i gns to the Dcvelopment Property. A tier the date of th is.
A greement and ullli I construction 0 f the M in i mUm 1m pro\'Cments has becn compl cted. the
Developer shall make reports. in such detail and at such times as may reasonably be requested by
the Authority. as to the actual progress of the Developer with respect to such construction.
'" C '
J1",
Secti on 4.-1. C erti Ii Cate of C omplet ion. (a) Prom ptl y atier COm 1'1 etion of the Mini m um
J mprovements (or any indi I.idual unit thereof. at Develope,s req uest) in accordance with those
provisions of the Agreement relating solely to the obligations of the Developer to construct the
Minimum Improvements (inclUding the dates for beginning and completion thcreof). the
Authority will furnish the Developer with a Certificate shown as Exhibit C. Such certification
and such determination shall not constitute evidence of compliance with or satisfaction of any
obligation of the Deyeloper to any Holder of a Mortgage. or any insurer of a Mortgage. securing
money loaned to finance the Minimum Improvements. or any pan thereof
fb) I f the A uthori 'y shall re tilSe or fail to pro,. ide any CCrt i fic a t ion in accurdanee with
the provisions of this Section -1.-1 of th is A greemen I. the A uthuri t y sha I I. wi th in th i rty (30 ) day s
atier wrillcn request by the Developer. pro,ide the Developer with a wrillen statement.
indicating in adequate detail in what respects the Developer has failed to complete the Minimum
Impro,.ements in accordance with the pro,.isions of the Agreemenl. or is othef\\ise in delillllt.
and what measures or acts it will be necessary. in the opinion of the Authority. for the DC\.e1oper
to take or perform in order to Obtain such certification.
(c) The cons!ruction of any unit of the Minimum Improvements will deemed to be .
substantially complete upon issuance of a certificate of occupancy by the City for that unit. and
EI\,.r.~.j063(h I
MN190-111
14
.
.
the entire Minimum Improvements will be deemed to be substantially complete upon issuance of
a certificate of occupancy for all units. and determination by the, Authority that all site
improvement and landscaping have been completed to the reasonable satisfaction of the
Authority.
Section 4.5. Records. The Authority and the City through any authorized
representatives. shall have the right at all reasonable times after reasonable notice to inspect.
examine and copy all books and records of Redeveloper relating to the tvlinimum Improvements.
Redeveloper shall also use best efforts to cause the contractor or contractors. all sub-contractors
and their agents. and lenders to make Iheir books and records relating to the project to Ihe
AUlhority and CiIY. upon reasonable notice. for inspection. examination and audit. Such records
shall be kept and maintained by Redeveloper through the t\'1aturity Date.
.
F\ IT -~~0630\ I
!\INI'lO.111
15
ARTICLE VI
Tax Increment; Taxes
.
Section 6,1. Right to Collect Delinquent Taxes. The Developer acknowledges that the
Authority is providing suhstantial aid and assistance in funherancc of the de\'elopment. The
De\'eloper understands tha, the tax increment intended to pay expenses of the Authority and the
Developer are derived from real estate taxes on the Development Propeny. which taxes mUst be
promptly and timely paid. To that end. the Developer agrees for itself. 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 Agreentent to pay before delinquency all real estate taxes assessed
against the De\e1opment Propeny and 'he Minimum Impro\ements. The De\'e1oper
acknowledges that this obligation creates a COntractual right on behalf of 'he Authority '0 sue the
Developer 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 such
suit. the Authority shall also be entitled to reCOver ilS costs. expenses. and allomey fees.
Section 6.1. &.v'iew of Tax",. The Developer agrees that prior to the Maturity Date it
wi II no' cause a red ue, ion in the real propeny taxes paid in respect of the De\'eI opment Propeny
throu gh: (A) wi II 1l,I destruction 0 f the Development Propeny or any pan thereof: or (B) wi II f ul
reJusalto reconstruct damaged or destroyed propeny pursuant to Section 5,1 of this Agreement.
except as provided in Section 5.1 (e). The Developer also agrees that it will not. prior '0 the .
Maturity Date. seek exemption I,om propeny tax for the De\"C/opment Propeny or any portion
thereof or transfer or permit the transler of the Development Property to any entity that is exempt
li'om real property 'axes and state law (other than any portion thereof dedicated or conveyed to
the Ci'y in accordance with platting of the Development Propert\). or apply for a deferral of
property tax on the DC\'l:/opment Property pursuant to any law.
Section 6.3. Assessment Agreement. (a) Upon of this Agreement. the Developer shall.
~ with the Authority. eXeeute an Assessment Agreement pursuant '0 Minnesota Stall"e.!'. Section
469.177. subd. 8. speci(ving an assessor's minimum market value (the "Minimum Market
Value") for the Development Property and 'he Minimum Improvements eonstrueted thereon.
The amount of the Mini m Unt Market Val ue shall be $ __ .___ ,. _' 1.850. DUD as 0 f J an ual}' 1.
2005 and each January .1 thereafter through the Maturity Date.
(b) The Assessment Agreemem shall be substamially in the form aUached hereto as
Exhibit C. Nothing in the Assessment Agreement shall limit the discretion of the assessor to
assign a market value to the propeny in eXcess of the Minimum Market Value. The Assessment
Agreemem shall remain in loree for the period specified in ,he Assessment Agreement. The
Deve/oper shall cause the Assessmem Agreement to be consemed to by any Holder of a
Mortgage.
f Section 6.4. Qualifications. Notwithstanding anything herein to the eontral}. the panies
aekno\\' ledge and agree that ,he Provisions nf Sections 6.1. 6.c and 6.3 hereof shall not apply to a .
residential unit within the Minimum lmpro\'ements from and after tbe date that such unit is
U.IT':!~063(J\ I
!\I)I.;/9V.111
18
.
.
subst:mtially completed :md sold to :m owner-occupant. The Assessment Agreement shall
include a termination provision substantially reflecting the terms of this paragraph.
.
EMT .240630, I
MNI9U-111
19
ARTICLE VII
Financing
.
Secti on 7. I. ~ 10 rt eaee F i nunc i n e. (a) Before the Fi "t Disbursement of Land Acqu i si tion
----
Costs under Section 3A hereof. the Developer shall submit to the Authorit) e\'idence of one or
more commitments lor mortgage financing \\bich. together with commilled equity for such
construction. is sufficient lor the acquisition of the Development Property and constructing the
Minimum Impro\ements. Such commitmems may be submilled as short tem1 linancing. long
iftenn morteaee financine. a bridee loan with a lone term take-out financine commitment. or anv
combinati~n -Of the foregoing. Such commitmem- or commitments for sh~rt term or long ten;!
mortgage linancing shall be subject onl) to such conditions as are normal and customary in the
' mortl.!<1l.!e bankinl.! illdustrv.
.... .... ..... .
(b) If the Authorit) finds that the mortgage linancing is sufficientl) com milled and
adequate in amount to provide for acquiring Ihe Development Property and constructing thc
Minim um I mprovements then Ihe A uthori t) shall nOli Ii- the Developer in wri ting 0 fits approval.
Such approval shall not be unreasonably withheld and either approval or rejeclion shall be given
within thirty (30) days from the date when Ihe Authority is provided the evidence of mortgage
financing. A failurc b) the Authorit) to respond to such evidence of mortgage financing shall be
deemed to eonsti tU!e an appro\ 'al hereunder. J f Ihe A ulhori t) rcjects the '" 'idence of mortgage
linancing as inadequate. it shall do so in writing specil)-'ing the basis for the rejeclion. In any .
""ent the Developer shall submit adequale evidence of mortgage financing within thirty (30)
days alter slIch rejection.
Section 7.2. Authoritv's Option to Cure Dec,ult on Morteaee. In the event that there
occurs a def.ult under any Mortgage authorized pursuant 10 this Agreement. the Developer shall
cause the A uthori t) 10 receive copies of any 001 ice of de/ault rccei \ed by the De\'e loper from the
holder of such Mortgage. Thereafter. the Authorit)' shall have the right. but nOlthe obligation. to
Cure any such default on behulf of the Developer within such cure periods as are available to the
Developer under the Mongage documents.
.
u,n.:'406JO\ I
M'\/(,I(J.III
20
ASSESSMENT AGREEMENT
~
.
Tl-lIS AGREE\1ENT. made on or as of the davof .2003. and
- .
between the HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY
OF MONTICELLO. a public body corporate and politic (the "Authority") and MASTER'S
FIFTH A VENUE. INC.. a t\1innesota corporation (the "Developcr").
WITNESSETH. that
WHEREAS. the Authority and the Devdoper entered into a Contract for Private
Dcvelopment dated . 2003 (the "Contract"). pursuant to \\hich the Authority is to
facilitate de\clopmcnt of certain property in the City of l\lonticcllo hereinaftcr referred to as thc
"Property" and leg:.dly described in Exhibit A hereto: and
WHEREAS. pursuant to the Contract the Developer will construct certain impro\'ements
upon the Development Property (the "Minimum Improvements"); and
\VHEREAS. the Authority and the Developer desire to establish a minimum market value
for the Property and the improvements constructed thereon. pursuant to tvlinnesota Statutes.
Section 469.177. Subdivision 8: and
WI1EREAS. the Authority and the As~cssor for Wright County (the" Assessor") have
rev'iewed the plans and specifications for the improV'ements and ha,'e inspected such
Improvemcnts:
NO\\'. THEREfORE. the parties to this Agrecment. in cc,nsideration of the promises.
covenants and agreements made by each to the other. do hereby agree as follo"\"s:
\ . The minimum market value which shall be assessed for ad valorem tax purposes
I\)r the Property described in Exhibit A. together with the tvlinimum Improvements
constructed thereon. shall be $ \, 'b:7'O \ () t D as of January 2. 2005 notwithstanding the
progress of construction by such date. and as of each January 2 thereafter until tennination of
this Agreement: provided. however. that upon initial sale of any residential unit to an oWl1er-
occup.nt. the minimum market V'alue herein established shall be of no further force or effect
as to the unit so transferred. and the minimum market \'a\ue for the remaining Property shall
be deemed to have been reduced by the estimated market \'a\ue (as determined by the
Assessor) of the unit transferred. Upon sLlch sak. the Authority will deli\er to the
Redeveloper or unit purchaser an instrument in recordabk form that releases the unit from
any encumbrance created by this Agreement.
.., The minimum market va\ue herein established shall be of no further force and
effect and this Agreement shall terminate on the t\hturity Date as defined in Contract.
3. This Agreement shall be promptly recorded by the Authority. The Redeveloper
shaU pay aU costs of recording.
.
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DIT.NOh30\ I
M'- 190-111
4. Neither the preambles nor provisions of this Agreement are intended to. nor shall .
they be conSlrued as, modifYing the tenus of the Redevelopment Contract between the Authority
and the Rede\"eloper.
5. This Agreement shall inure to the benefit of and be binding upon the successors
and assigns of the parties.
6. Each of the parties has authority to enter into this Agreement and to take all
aClions required of it. and has laken all actions necessary 10 authorize lhe execulion and delive!}'
of this Agreement.
7, In the eVent any pronslOn of this Agreement shall be held invalid and
unenforceable by any court of compelent jurisdiction, such holding shall not invalidate or render
unenforceable any other pro\'ision hereof.
8, The parties hereto agree lhat lhey will, from time to time, execule, acknowkdge
and deliver, or cause to be execuled, acknowledged and delivered, such supplcments,
amendmenls and modificalions hereto, aild such further inSlruments as may reasonably be
required for cOrrccling any inadequate, or incorrect. or amended description of the Property or
the Minimum Improvements or for carrying oul lhe expressed inlention of this Agreement.
including, without limitation, any further instruments required to delete from the description of
the Property such part or parts as may be included within a separate assessment agreement,
9, Except as provided in Section 8 of lhis Agreement, this Agreement may not be .
amended nor any of its tenus modified except 'by a writing aUlhorizcd and executed by all parties
hereto.
10. This Agreement may be Simultaneously executed in several counterparts. each of
which shall be an original and all of which shall conSlitute bUl one and the same instrument.
II. This Agreement shall be governed by and construed in accordance with the laws
of the State of Minnesota.
HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE
CITY OF MONTICELLO. MINNESOTA
By:
.
EMT.2-t0630\ I
MN/90.111
.
.
.
Its Chair
By:
Its Executive Director
5T ATE OF MINNE50T A )
) 55.
COUNTY OF WRIGHT )
The foregoing instrument was acknowledged before me this day of
~003. by and Olive Koropchak. the Chair and Executive
Director of tbe Housing and Redevelopment Authority in and for the City of Monticello.
Minnesota, on behalf of the Authority.
Notary Public
EMT _2-t063Ov I
MN190-111
MASTER'S FIFTH A VENUE, INC.
By:
Its:
STATE OF MINNESOTA )
) SS.
COUNTY OF WRIGHT )
The foregoing instrument Was acknowledged before me this _ day of
' 2003. by . the of
Master's Fifth A venue, I nc. a Minnesota corporation. on behalf of the corporation.
Notary Public
EMT -240630\, I
MN 19()./ II
.
.
.
.
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CONSENT AND SUBORDINATION
The undersigned. as holder of that certain Mortgage. Security Agreement and Fixture
Financing Statement given by the Developer dated and tiled
in the office of the Wright County Recorder as Document
No. (the "Mortgage") hereby consents to the forgoing Assessment Agreement
between the Authority and the Developer. and agrees that the Mortgage is in all respects subject
and subordinate to the terms of the Assessment Agreement.
By:
Its:
By:
Its:
ST ATE OF MINNESOTA )
) SS.
COUNTY OF )
The
foregoing instrument was
. 2003 by
acknowledged before
and
this
day of
, the
. on
me
of
and
behalf of the bank.
Notary Public
EMT -2.t0630\ I
MS1'lO-111
CERTIFICA TION BY COUNTY ASSESSOR
The undersigned. having reviewed the plans and specifications for the improvements to
be constructed and the market value assigned to the land upon which the improvements are to be
constructed. hereby certifies as follows: The undersigned Assessor. being legally responsible for
the assessment of the above described property. hereby certifies that the values assigned to the
land and improvements are reasonable.
STATE OF MINNESOTA )
) ss
COUNTY OF WRIGHT )
County Assessor for the County of Wright
The foregoing instrument was acknowledged before me this _ day of
2003 by . the County Assessor of the County of Wright.
EMT-:!-106JO\1
MNI"IO_111
. -
Notary Public
.
.
.
.
.
.
CONSENT AND SUBORDINATION
The undersigned, as holder of that certain Mortgage, Security Agreement and Fixture
Financing Statement given by the Developer dated and filed
in the office of the Wright County Recorder as Document
No. (the "Mortgage") hereby consents to the forgoing Assessment Agreement
betwcen thc Authority and the Developer. and agrees that the Mortgage is in aU respects subject
and subordinate to the termS of the Assessment Agreement.
By:
Its:
By:
Its:
5T ATE OF MINNESOTA )
) 5S.
COUNTY OF )
this
day of
, the
. on
The
foregoing instrument was
, 2003 by
acknowledged before
and
me
of
and
behalf of the bank.
Notary Public
EMT -2-10630\ I
M~lQO.lI1
CERTIFICA TION BY COUNTY ASSESSOR
.
The undersigned, having reviewed the plans and specifications for the improvements to
be constructed and the market value assigned to the land upon which the improvements are to be
constructed, hereby certifies as follows: The undersigned Assessor, being legally responsible for
the assessment of the above described property, hereby certifies that the values assigned to the
land and improvements are reasonable.
County Assessor for the County of Wright
STATE OF MINNESOTA )
) ss
COUNTY OF WRIGHT )
The foregoing instrument was acknowledged before me this _ day of
2003 by . the County Assessor 0 f the County of W ri ghl.
lIl...
Notary Public
.
.
HIT ..H06Jo\,
MN''!O.l'l
.
.
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HRA Agenda - 01/07/04
6.
Consideration to discuss .Joint Meetin
Plan Amendment for Block 52.
A. Reference and background:
The BRA commissioners may want to briet1y discuss the joint meeting held between the BRA,
Council, Planning, and DA T. A summary of the meeting: A well run meeting with good input
from the commissioners, public, and developer. The Council deferred any action on the Comp
Plan Amendment til the January 12, 2004, Council meeting. It appeared the majority of the
commissioners were in-favor of Comp Plan amendment to reduce the zero lot~line setback on
Pine Street. [t appeared Council members may also be in-favor of amending the zero lot-line
on Broadway.
Regardless of the decision to amend the Comp Plan and if the City wants to see a successful
redevelopment on Block 52, access to the block is critical. No business will succeed without
good access. What is the City's long-term access plan? Secondly, is the proposed Comp
Plan amendment for just Block 52 or the CCD (Central Community District)?
For the lIRA to be in a pro-active position rather than a re-active position, the BRA Chair and
some commissioners requested an appraisal be ordered for the Steve Johnson parcels. On
Tuesday, December 23, four commercial appraisal references were obtained and bids received
from two. A bid from Julie Schwartz, Lake State Realty Service, for $2,000 to $2,300 per
parcel for the two parcels was acceptable. This bid was for a summary report rather than a
self-contained report which is necessary for condemnation. The appraisals would be
completed by the February BRA meeting if not before. lIowever, upon contacting the owner
of the parcels for acceptance and right to enter property, the owner felt the HRA was
premature. I don't believe the developer understands that time is running out and what options
remain. I was unable to connect with Fred Katter. No appraisal ordered.
The lIRA attorney has told me more than once that he didn't foresee the Block 52 project
meeting the TIF expenditure deadline of June 30, 2004, and the permanent bond issuance date
of May 5,2004.
As you recall, the scheduled outlined by Ehlers & Associates indicated the developer's need to
present a finance plan to the HRA in December and to submit a site plan and evidences of site
control by January. An offer for the HRA lot has not been received. The lIRA needs to call a
public hearing date for disposition ofraw lands and typically, the lIRA obtains an appraisal
prior to buying or selling properly. The HRA purchased the Broadway lot from Flulh 00 July
3,1996, for $50,000. 'rhc March 27,1996, appraisal was $37,000 for unimproved land.
The assessed value for taxes payable 2004 is $34,600.
.
liRA Agenda - 01/07/04
Should the HRA be interested in pursuing purchase of the Johnson parcels or other parcels,
here are some things to think about:
* Execution of Purchase Agreement by Apri I HRA mceting.
* Closing prior to June 30, 2004.
Under this scenario, the HRA would purchase the parcels from District No 1-22 bond dollars.
What is the willingness of other property owners to work with the BRA in order for the HRA
acquire parcels and go out for an RFP in the future? What are the planned access points and
traffic circulation for Block 52? Prior to proceeding with a redevelopment project and prior to
demolition of any existing buildings, the appropriate parcels on Block 52 would be removed
from District No. 1-22 and a new redevelopment district established. An advantage to this is
the use of the current tax rate and a 25 year district.
Potential added costs to Johnson parcels - Removal of buried tanks, potential asbestos, and
relocation costs.
I'll be out of the office the week of December 29 except for Wednesday. At this time no
action is recommended and no requcst has bcen madc by the dcvelopcr.
.
.
2
.
.
.
\,.
SCHEDULE BLOCK 52
IU:DE\'ELOPME~T ASSISTA~CE
Deu:l11hcr 3 IIR:\ meeting - finance Plan submittcd,
January 7 ! IRA mCding -
1\ lurch 3 lIRA meding -
April 7 I-IRA meeting -
i\lay 5 HRA mccting -
June 30. 200.+ -
Site Plan submitted,
Site control.
Dl'\'cloper dCl1l0nstr~ltcs finuncing commitmcnts,
Contract for Pri\'ate Rede\'clopment bet\\'ccn de\'cloper(s) and
1-1 RA e:\ccuted.
HR.-'\ tiLlthorizes issuance of Permonent Bonds,
All eligible TIF e:\penditures must be spent.
"'"
.
.
.
BRA Agenda - 01/07/04
7.
Consideration to authorize second notice of administrative costs for non-certified TIF
District No. 1-32.
A. Reference and background:
Attached is a copy of the letter mailed to Mr. Wurm in April, 2003, relative to administrative
cost over-runs for non-certified TJF District No. 1-32. We have not received the payment of
$722.50. Does the BRA want me to send a second notice and have the Finance
Department attach an invoice noting interest after the due date? Since the letter was
mailed another invoice of$43.75 was received from Kennedy & Graven. As you recall, the
company decided to purchase the vacant Midwest Graphics building after Ehlers prepared the
documentation for a new TfF District and Kennedy & Graven prepared the Contract. A
Preliminary Development Agreement was executed by Wurm and the BRA and the developer
paid the $5,000.
Please note under the Executive's Report, ] did write Production Stamping about the "available
tax increment" deficiency payment for August], 2003, for TIF District No. ] -23 (Midwest
Graphics District).
B.
Alternative Action:
] . Authorize second notice of administrative cost over-runs for non-certified TI F District
No. 1-32 with or without notice of interest after due date.
2. Deny authorizing second notice of administrative cost over-runs for non-certified TIF
District No. 1-32 and cover cost by transferring funds from 1-23.
C. Recommendation:
The City Administrator recommends alternative no. I fix consistency. My concern is "How
welcome does the City of Monticello make a new company feel if we have other means?"
Van Heel was not happy paying the deficiency at closing for District No. ] -23. Wurm assumed
the deficiency and wage/job creation reporting for District 1-23, and the "available tax
increment" for District 1-23 means 80% of the tax increment. We could transfer the $722.50
plus $43.75 from 1-23 to 1-32 to cover the short fall and in the long run not return that amount
to the County. I expect there will be a continued "available tax increment" deficiency in District
No. ] -23.
April 29, 2003
1..
MONTICELLO
Mr. Les Wunn
Production Stamping, Inc.
9600 Fallon Avenue NE
Monticello, MN 55362
Re: Administrative Costs for TIF District No. ]-32.
Dear Les:
Congratulations on the relocation of Production Stamping to the City of Monticello. We wish you and your
company many prosperous years.
.
Previously. you and I spoke about the Administrative Costs for the preparation ofTIF District No. 1-32. TIF
District No. 1-32 was prepared in anticipation of the construction of a 60.000 sq. ft. manufacturing faci I ity on Lot 2.
Block I. Monticello Commerce Center Sixth Addition. Upon execution of the Preliminary Development Agreement
between the Housing and Redevelopment Authority in and for the City of Monticello, Minnesota. (HRA) and Wurm
Partnership. LLP. dated June 24. 2002, a $5.000 deposit was received from the developer. Les Wurm. to cover the
Administrative Costs incurred by the HRA If the Administrative Costs exceeded the $5.000 and upon receipt of
such notice. the Developer agreed to deliver the required additional security.
Attached are the invoices froln Ehlers & Associates for creation of the TIF Distriu No. 1-32 and frolll Kenncdv &
Graven for preparation of the Contract for Private Development. The invoices total $5,722.50 less the deposit of
$5,000 leaves a balance of $722.50.
Please remit the balance amount of 5722.50 due and payable to the Monticello Housing and Redevelopment
Authority, 505 Walnut Street, Suite I, Monticello, MN 55362.
Thank YOLl for your attention to this matter. I look forward to visiting your new t~1cility.
Sincerely,
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO
(~~ \~dLt!~~~
Ollie Koropchak
Executive Director
Enclosures
c: TIF District No. 1-32 File
.
Monticello City Hall, 505 Walnut Street, Suite I, Monticello, MN 55362-8831 . (763) 295-2711 . Fax: (763) 295-4404
Office of Public Works, 909 Golf Course Rd.. Monticello. MN 55362 . (7fi1) )Q<;_1170 . J:;"y. (7';"-\ 771 "-777
.
Page: 2
Kennedy & Graven, Chartered
200 South Sixth Street
Suite 470
Minneapolis, MN 55402
City of Monticello
-J ;, C) 1..' 0
<"",:'..."1.
L\ V ""7
July 31, 2003
0.
Q-\
MN190-00103
Wurm Partnership Project- TIF 1-32
Through July 31, 2003
For All Legal Services As Follows:
7/9/2003 SJB Review Certified documents; phone call with Ehlers,
Koropchak re: same.
Hours
0.25
Amount
43.75
Total Services:
$
43.75
.
Total Services and Disbursements: $
43.75
,
.
.
MC100-01
Monticello HRA
505 Walnut Avenue, Suite 1
Monticello, MN 55362
December 10,2003
Gneral
Invoice # 21611
Professional Services
:~~
11/5/2003 TH
MlR
TH
11/20/2003 MlR
Hours Amount
Re\4se proforma analysis for Industrial Park
industrial park re\4ew
Re\4se proforma analysis for Industrial Park
discussions on admin
1.00
0.50
1.00
0.25
Total Due This Month:
2.75 $343.75
Status of Account:
Current
$343.75
.
30 Days
$0.00
60 Days
$0.00
90 Days
$0.00
120+ Days
$0.00
OKT'() PAY? O\hL
~~-~.,l
Code "J-.\.._~,..~~o_~t~ ?, t9 \. ~ L q q
Initial ,~_.,~~~_.
125.00
62.50
125.00
31.25
Total
$343.75
.
, it
I ~ ! I: :. : !,
:1: '~. .s'
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,!! ',)
PLEASE KEEP WHITE COpy FOR YOUR FILE AND REMIT PINK COpy WITH PA YMENT TO:
~ ~ .
.- .,..""
. :
o
EHLERS
& ASSOCIATES INC
3060 Centre Pointe Drive
Roseville, MN 55113-1105
651.697.8500
.-'
.
.
City of Monticello
Accounts Payable
505 Walnut Street, Suite 1
Monticello, MN 55362
Kennedy & Graven, Chartered
200 South Sixth Street
Suite 470
Minneapolis, MN 55402
(612) 337-9300
Tax 10 No. 41-1225694
November 24, 2003
Statement No. 59229
Through October 31,2003
MN190-00001 General ~ 'Q...'f\ ~
MN190-00084 DTED Loan - Twin City Die Casting
~ ~o-..-
~~
MN190-00089 Acquisition of 218 Front Street/O'Connor
MN190-00111 Landmark Square Phase II (Masters Fifth Ave. Inc.) ~ .
..- 7
Total Current Billing:
I declare, under penalty of law, that this
account, claim or demand is just and correct
and that no part..o~.~. has been pa..i .d. f)'
../......., i 12 ~
....~.. ,
.-
. .-- / lit
~'I,., ...J"- J;
" \
Signature of Clciihla t 'J
IT:;::.-~'--(r;" .i:.~"'_;T,~,.. .....li:,-.... '':'1
J : r": ~_~.~f) .~".. U . . ~~),; ':: i
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107.80
463.75
425.94
183.75
1,181.24
l'? L /atl\~
\'- \Ll'- (,
Kennedy & Graven, Chartered
200 South Sixth Street
Suite 470
Minneapolis, MN 55402
.
City of Monticello
Accounts Payable
505 Walnut Street, Suite 1
Monticello, MN 55362
M N 190-00001
General
Through October 31, 2003
For All Legal Services As Follows:
10/4/2003 RJL Review file
(612) 337-9300
41-1225694
November 24, 2003
Invoice # 59229
10/6/2003
RJL Review file; phone call to O. Koropchak; write memo to
her; fax memo to Koropchak
Total Services:
.
For All Disbursements As Follows:
Fax
Photocopies
Total Disbursements:
Hours
0.20
0.40
$
Total Services and Disbursements: $
?-\~.
L\~~6\.
3 0 '--\ 0
.
Amount
35.00
70.00
105.00
$
2.00
0.80
2.80
107.80
.
Page: 2
Kennedy & Graven, Chartered
200 South Sixth Street
Suite 470
Minneapolis, MN 55402
City of Monticello
October 31, 2003
MN190-00084 DTED Loan - Twin City Die Casting
Through October 31,2003
For All Legal Services As Follows:
10/1/2003 SJB Review 0 Koropchak correspondence re amendment to
subsidy agreement
Hours
0.25
10/31/2003
EMT Review DTED grant agreement, loan agreement, City 3.00
resolution for second amendment, call to O. Koropchak
regarding first loan amendment, review amendment, draft
second amendment and revise.
Total Services:
$
.
Total Services and Disbursements: $
)G~
\ ~~l'
~ \..-0
'1'G\
If '30 to
~eoS~
.
Amount
43.75
420.00
463.75
463.75
.
City of Monticello
October 31, 2003
Page: 3
Kennedy & Graven, Chartered
200 South Sixth Street
Suite 470
Minneapolis, MN 55402
1)-\0
L\(pSl?3.
MN 190-00089 Acquisition of 218 Front Street/O'Connor
Through October 31, 2003
For All Legal Services As Follows:
10/16/2003 RJL Review letter from J. Peterson and regulations; dictate and
revise letters to J. Peterson and O. Koropchak
.
10/17/2003
10/21/2003
10/29/2003
RJL
RJL
RJL
Hours
1.00
Review, adjust and finalize letter to Koropchak; review file 0.20
Intraoffice conference re O'Connor relocation claim; 1.10
voicemails from Bubul and Koropchak; review file;
voicemails to Koropchak and Bubul; phone call to
Koropchak; revise letter to O'Connor's attorney; write
memo to Koropchak; fax to Koropchak; revise and finalize
letter to O'Connor's attorney
Voicemail from Koropchak 0.10
Total Services:
$
For All Disbursements As Follows:
.
Postage
Fax
Photocopies
Total Disbursements:
$
Total Services and Disbursements: $
? ~ ,+0
Amount
175.00
35.00
192.50
17.50
420.00
0.74
3.00
2.20
5.94
425.94
.
.
.
City of Monticello
october 31,2003
Page: 4
Kennedy & Graven, Chartered
200 South Sixth Street
suite 470
Minneapolis, MN 55402
MN190-00111
Landmark square phase II (Masters Fifth Ave. Inc.)
Through October 31, 2003
For All Legal Services As Follows:
1012812003 SJS phone call with Q Koropchak re Phase II, meeting with B
Fluth
10/28/2003
~
Hours
0.25
Amount
43.75
EMT Telephone call with Q. Koropchak and S. subui regarding 1.00
neW contract with Master Fifth Avenue group, Landmark
Square II, research completed file documents,
development agreement.
Total services: $
140.00
183.75
Total Services and Disbursements: $
183.75
~-:n:::
S~~
~~~~
. f(PS'b ~
J-t3,
3D{D
.
.
.
Kennedy & Graven, Chartered
200 South Sixth Street
Suite 470
Minneapolis. MN 55402
(612) 337-9300
Tax ID No. 41-1225694
December 15, 2003
Statement No. 59569
City of Monticello
Accounts Payable
505 Walnut Street, Suite 1
Monticello, MN 55362
Through November 30, 2003
MN190-00084 OTED Loan - Twin City Die Casting
MN190-00111 Landmark Square Phase II (Masters Fifth Ave. Inc.)
238.00
1,916.25
"
Total Current Billing:
2,154.25
I declare, under penalty of law, that this
account, claim or demand is just and correct
and that no part of it has been paid.
OK TO PAY? bll\~~
Code: ~ ~
\n\t\a\ _ ~
\.,..\c;_o~
-'--'-'-" _.._------~.._~]
[In" ~ l~ 11.l \':-~ II ",Ii :!'; :-.->.'
1.':::. ~ .!;, II 0J b :: "
\L r---....----.----': 1:,
111\ : . DEe 1 8 2003 . ~!n
~ULI i I
I _ -...: I
ITV (: C 1:"U, :.'.; >"',: t '. ;'\ .
e,l ~-.:..\.::~~_'.~..:.::.:.:-::l.~
-
.
Kennedy & Graven, Chartered
200 South Sixth Street
Suite 470
Minneapolis, MN 55402
(612) 337-9300
41-1225694
~ ;y'). ?- \ 4 ~ c;.
. \-o~
~ _ "; " 'll[)
YJ..~
December 15, 2003
Invoice # 59569
City of Monticello
Accounts Payable
505 Walnut Street, Suite 1
Monticello, MN 55362
..-
MN190-00084 DTED Loan - Twin City Die Casting
Through November 30, 2003
For All Legal Services As Follows: Hours Amount
11/3/2003 EMT Telephone call from C. Pressley- Olson regarding 0.30 42,00
" extension of subsidy, review statute.
11/4/2003 EMT Review revised second amendment and return call to C. 0.30 42.00
Pressley-Olson.
11/6/2003 EMT Send and review email from C. Pressley-Olson regarding 0.50 70.00
. status of federal/ state funds and business subsidy
extensions, review loan document and amendment.
11/7/2003 EMT Review loan agreement and ~ant agreement, discuss with 0.40 56.00
S. Bubul options, and call to . Koropchak.
11/10/2003 EMT Message from and call to O. Koropchak regarding second 0.20 28.00
amendement to agreement.
Total Services: $ 238.00
Total Services and Disbursements: $
238.00
.
'.
Page: 2
Kennedy & Graven, Chartered
200 South Sixth Street
Suite 470
Minneapolis, MN 55402
~-%
S
~\~
0,-\0
.~
City of Monticello
~ \:,:? ~
November 30, 2003
MN190-o0111
Landmark Square Phase II (Masters Fifth Ave. Inc.)
Through November 30, 2003
For All Legal Services As Follows: Hours Amount
1117/2003 SJB Conference call re Phase II; intraoffice conference with E 0.60 105.00
Mercer-Taylor re documents
1117/2003 EMT Review first Landmark file, contract, amended contract, 2.00 280.00
, notes, call to O. Koropchak, conference call with O.
Koropchak, B. Fluth, S. Bubul, discuss next steps with S.
Bubul.
11/20/2003 SJB Intraoffice conference with E Mercer-Taylor re contract 0.25 43.75
. 11/20/2003 EMT Review notes, research and draft contract for private 4.50 630.00
development.
11/21/2003 SJB Revise contract; phone call with 0 Koropchak re same 3.50 612.50
11/25/2003 SJB Phone call with 0 Koropchak; revise contract 1.00 175.00
11/25/2003 EMT Review emaHs, changes to contract made by S. Bubul, 0.50 70.00
make minor revisions.
Total Services: $ 1,916.25
Total Services and Disbursements: $
1,916.25
.
~
DU'TDDDR ADVERT1SING
BOX 218 - ALBERTVILLE. MINNESOTA 55301
(763) 497-3000. 8()()"22 1-4144
FAX (763) 497-4476
MONTICELLO CHAMBER OF COMMERCE
P.O. BOX 192
PAGE
1
MONTICELLO MN 55362
Credit Limit: $810.00
Payment Terms: NET 15 C~YS
Finance charg~ APR: 18.00\
PLEASE DETACH AND RETURN THIS PORTION WITH YOUR PAYMENT
DOCUMENT NUMBER ....j ~ ." CREDITS
INV02026 12/2/2003 SLS INV02026
C.h J-(V"> v.r
P~\,n tiN
. \\ 07
0
-"
\A~ v?
o\.. ~.
\ "
We now accept Visa, Mastercard American
Express. Any questions call 80 -221-4144.
AMOUNT DUE
LS Involces FIN Flnance C arges CR Cre lt Memos
.~P Scheduled Payments SVC Service I,Repairs RTN Returns
DR Debit Memos WRN Warranties PMT Payments
(WMNM~~
~u.
$0.00
$0.00
$0.0
"~
c::x..1TOOCR AD\IER'TlI!NNCI
.218 - ALBERTVILLE, MINNESOTA 55301
(763) 497~3ooo. 800-221-4144
FAX (763)497-4476
INVOICE NO: 09398
INVOICE
Monticello Chamber Of Commerce
P.O. Box 192
Monticello Chamber Of Commerce
SOLD TO:
Monticello MN
55362
SHIP TO:
P.O. Sex 192
Monticello MN
55362
ACCOUNT NO. SAU;SPfASOtl SHIP VIA TERMs ". . INVOICE DATE PAGE "'
NO
2618 BCB NET 15 DAYS 12/18/2003
OTY. INVOICED ITEM NO. OESCRIPTION UNIT PRICE EXTENDED PRICE
1 BBRD December Advertising 1-94 Albertville $800.00 $800.00
1 BBRD January Advertising 1-94 Albertville $800.00 $800.00
SUBTOTAL:
$1,600.00
Trade Discoun $0.00
.9hanA ~It TOTAL: $1,600.00
Monticello
Chamber of Commerce
205 Pine Street, P.O. Box 192, Monticello, MN 55362
Phone (763) 295-2700; Fax (763) 295-2705
Website: www.montice//ochamber.com
E-mai/: info@monticellochamber.com
J
...aO:<lTlCELLO
CZHl},MBERof
€OMMERCE
Ollie,
Enclosed is the bill from Franklin Signs for the Billboard. As per the agreement with the
Marketing Committee, you are responsible for the three months rent at $800 per month.
The billing that is enclosed is only for two months, however, as Franklin bills for
February in mid-Jan, Any questions, please call Susie. Thank you.
.
I, /.--.-
,/ t V'L-/
.
.
.
.
HRA Agenda - 01107/04
9.
Consideration of Executive Director's Report.
^' Copy of the tax incrcment received from the County for the second half oftaxes payable
2003. You will note T. 1. Martin is delinquent. Although the HRA retired the district debt with
the transfer and sale of the property from T. 1. Martin to the Hoglunds, the HRA has not de-
certified the district. Secondly, Production Stamping has paid the property tax for the second-
half of 2003 plus a penalty per the County; however, not in time for the 1 IRA to collect the tax
increment. This was noted in the letter to Mr. Wurm.
B. Copy of letter to Mr. Wurm, Production Stamping. Notification of tax increment deficiency
($268) for first-half of taxes payable 2003 or August 1,2003, Payment Date. The first
paragraph on page two reminds the developer of the need to pay taxes on time. 1 did not list
the $18,209 deficiency, February I, 2004, Payment Date, as a tax increment deficiency
knowing the taxes were paid plus penalty. The HRA will collect this with the tax increment
collected for the first-half of2004. A deficiency notice will be mailed at that time unless the
l-lRA sees a need to notify Production of the $18,209 deficiency.
C. I received the 2004 TIF Parcel Modeler from the County which has the Captured Tax
Capacity by each parcel for each TIF District. For TIF District No. 1-22, the captured tax
capacity for 2004 is $217,462 up from 2003, $166,448. This includes the five-year activity
rule which means only parcels with permitted activity still collect tax increment.
D. Copy of letter relative to snow removal at Riverwalk.
E. It is my understanding Rick has authorized the reimbursement of tax increment to the
County as approved by the liRA in December.
F. Christmas greetings were mailed to Monticello industries, some builders and contractors,
and consultants.
G. The Small Industrial Group is scheduled to meet on Thursday, January 8, at 4:00 p.m.
They will review a revised counter-oiTer before submitting to Chadwick.
H. 2003 Annual Meeting of the Wright County Economic Development Partnership. January
16,2004,7:45 a.m. to 10:00 a.m. Wild Marsh Golf Club, Buffalo, MN.
I. Steel Fabricator - 4,000 - 8,000 sq ft, wages $20 per hour. Seven jobs. Make decision in
2004. Looking at Maple Lake. Called 12-23-03 about City's potential to develop park.
Contract Machining Company - Looked at Remmcle Building - visited in October. Unable
to connect with owner. Asked UMC to help out. Like to talk to about other options in
Monticello. 40 jobs, $18.50 per hour wages. Will write letter if all fails.
H- Window Building - Two inquiries - Selling price - $2.2 million. Will now lease - $4.00
per sq ft for office and $2.00 per sq ft for warehouse -rriple Net Lease. This as of December
16.
Contacted previous looker of H- Window bui Iding relative to new information and potential
of city owned park.
Large grocer distribution - Called for update at State and agent.
Medical Manufacturer - Continue to connect - will write letter about potential new options.
.
HRA Agenda - 0 lI07/04
Couple of local manufacturer thinking about expansion.
Retail - Couple of restaurant inquiries. Potential of other redevelopment.
.
.
2
.
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December 22. 2003
--
MONTICELLO
Mr. Les Wurm
Production Stamping, Inc.
9600 Fallon ^ venue NE
Monticello, MN 55362
RE: Contract for Private Development - TIF District No. 1-23.
Dear Les:
With the end of the year comes a review of each Contract associated with a Tax Increment
District. As you recall, a Second Amendment to the Contract for Private Development was
executed bet\-veen lAC Development, LLC and the Housing and Redevelopment Authority in
and for the City of Monticello on June 3, 2003, for the property located at 9600 Fallon Avenue
NE, Monticello., The Assignment of Contract fl..Jr Private Development bet\-veen .lAC
Development, LLC and Production Stamping, Inc. was executed on July 15,2003.
Per the Contract: If on any Payment Date the amount ofAvai/able Tn\' Increment is insufficient
to pay the arl10unt due on that Payment Date, the Developer shall pay to the Authority, -within 1 ()
days ofwrilfen demand by the Authority, an amount equal to the dillerence between the amount
payahle under Exhihit B (as modified) and the A vai/able Tax lncrernent actually received hy the
Authority as ofthat Payment Date_ The Developer hereby acknowledges that the amount of
Avai/ahle Tax Increment is subject tn change in State h{w and calculation by the Stute and
County and that any such variation shall not impair the Authority 's rights ur the Developer's
obligat ions here under_
The amount of the Available 'fax Increment actually received for the August 1,2003, Payment
Date, was $18,795 (the "Deficiency Payment") and $17,941 for a total atnount of $36,736. Per
Exhibit 8, the Payment Schedule, the Total Payment amount is $37,004. The amount due the
Authority fron1 the Developer is Two Ilundred Sixty-Eight Dollars and No Cents ($268). the
amount equal to the difference between the amount payable under Exhibit B and the Available
Tax [ncrctnent actually received by the Authority as of that Paytnent Date.
Please remit the ahove amount to: Monticello Housing and Redevelopment Authority, 505
Walnut Street, Suite I, Monticello, MN 55362.
...." -.. ----.. ..-......"......".....-..'''..
Monticdlo City Hall, 505 Walnut Street, Suite I, MOllticello, MN 55362-8831 . (763) 295-2711 . Fax: (763) 2')5-4404
Office of Public Worb, l)09 Golf Course Rd., Monticello, MN 55362 . (763) 295<,170' Pax:: (763) 271-3272
.
.
.
'-
I"
Mr. Les Wunn
December 22, 2003
Page 1
No tax increment was calculated by the County nor paid to the Authority for the six months
preceding the Payment Date, February 1.2004. Please refer to ARTICLE VI Tax Increment:
Taxes. of the Contract.
Should you have any questions. please caIl me at 763-271-3208. Thank you for your attention to
this matter.
Sincerely,
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO
6~ \~na~~~
Ollie K'oropchak
Executive Director
Enclosure
c.
TIF District No. 1-23 File
Steve Bubul, HRA Attorney
./
.
EXHIBIT B
I'
Payment Schedule
P.'ymcnt Schedule
Pnyment Date Interest Principnl Total Pnyment
August 1.1003 4.150 31.754 37.004
February I. 2004 3.104 15.105 18.209
August I. 2004 2.575 15.634 18.209
February 1.2005 2,028 16.181 18.209
August I. :W05 1.462 16.747 18.209
February 1.2006 876 17.333 18.209
August 1. 2006 269 7.689 7.958
I...
.
.
S.lIl- 2i' I :i')v I
MNllJO-110
B-1
C\\).
December 22_ 200]
MONTICELLO
Ms. Karen Weaver
llans Hagen Ilomes
941 NE Ilillwind Road. Suite 300
Fridley. MN 55432
Re: Rivenvalk snow removal
Dear Karen:
The purpose of this leHer is to summarize our con\'ersation or Decelllber 17.200]_ relati\C to the
rel1lo\',1! of snow by the Ri\el"\\alk TO\\'llhouse Association.
.
The plan /()f snmv n:mO\al for the rear private alley of the Rivcnvalk townhouse developmellt is as
f(lllm\s: The Lawn and Snow Service Contractor hired by the Association will first Il1me the SIlO\\' to
the Iloll h 0 f the alley het weell the center islands of the townhouse d ri veways. Should a hea\ icr sno\\
I(dl OCCUI". the second plan is to mo\"C the snow to the far ends or the development. Thc LIst option is 10
reIl1O\'C the snow from the area.
You inquircd anout possihle placcs to stockpile snO\v. ^ few suggestions: Jay Morrell. 7().1-2():'-3122:
Schluender. 763-295-5784: and Ken Maus. 763-295-2634.
The City of I'v!onticello appreciates Ilalls Itagcn I tomes cooperation and quick response tothe COllcern
raisl'd by the neighbor. Should you havc any questions. pleasc call me at 7('3-271-J208.
Sincerely.
CITY OF iv!ONTICELLO
CJllL \< ~,\(,D~
Ollic Koropchak
l:conol11ic Development Director
c:
Bret \Vciss. \VSB. Ine.
(lien Posusla. Council i\lcmhL'r
Jnhn Simol,L I'ubl.ic \\'orks l)in.'Clt1r
File
.
Monticello City Hall. 505 Walnut Street. Suite l. MOlllicdlo. MN 55Vl2-883 I . 0(3) 295-2711 . Fax: Ot.3) 295 4404
Office of Public Works, 909 Golf Course Rd. :>Iollticcllo. MN 55362 . (763) 295-3170' Fax: 0(3) 271.3272
Ot \...uL
MONTICELLO MONTHLY BUILDING DEPARTMENT REPORT
'r 2003
~ USES
This Sllm~ i\1"lllh LlIst \'~lIl' This \'~lIr
nUTS ISSt 'EI) '''unth Lust \'~1I1" Tu ()ut~ Tu Dalc
1.11_
lO 21 5..1') 501l
HIlR9.7" 1,00 $1.'!9Ii.05(JOO $2(>.36".209,()O $27.277.6n,()()
$71.(.R5.1>5 $12.02512 $-124.109,10 H2.1.001A5
$I.X03,15 $755,92 $ 13,62.1'1,1 $ J 3.21U, 71
I,-l/.
2 .1 65 59
$1 J 5.000,00 $37.36000 $IJ.7HU63.UO $12.2(,7.6.HJ.OO
$2.1.'6,51 $1,OR9.7X $1111.319.53 $104,96Il.J7
$57.50 $IR,61l $5,57195 $4.1 R9,31l
.
'-
0 0 0 I
$0.00 $(l.(JO $0,00 $500,00
$0,00 $0.00 $0.00 $23.00
$1l.OO $0,00 $(J.OlJ $0.50
31 11 25') 274
$-J.459,()0 $1.J05.00 $23.550,OIl $36.J5Il,1l0
$16,()O $6,00 $129.5() $IXIUO
L
40 /l) 2')H 3U2
$3. 751.50 $J.(lIO,()O $19,0)000 $22,'142.00
$2000 $9,)0 $14H.50 $153.50
0 0 II 12
$O,OlJ $ (J.(JO $31L 700,00 $53.500,00
$000 $0,00 $%3,15 $950.15
$0.00 $0.00 $39..13 $20.50
.\1 ITS 114 :i(, 11112 11%
\no:\ $ 4,1104,7" 1.1111 $ 1':;33," 16.1111 S 411,1117,772.1111 S 39,:;99,263.1111
S 82,1"2.66 $ 25,4311.00 $ 585,<J7I.7H S 5811,745.117
J..\I{GES $ 1,8%.95 $ 7911,I(J $ 19,5t2.82 S 17,1136.119
':\TII
..
FEES i'\l':\IUER TO IHTI-:
:\.\Tl'RE NUlllb~I' r~l"Init/l'llIll ('I( Sun:hlll'l(~ \'uluatiUIl This Yca/' L:1.~t r~ar
s $20.370.48 $541.58 $1.3Cl-I.539.0() 151 18,1
ill'S 0 $()OO $O.()() $000 'I 19
3 $15.693.% $/.10.73 $21i IA 15,O() J ()
10 $34,UJI.% $1,076,76 $1.155,U48()O 'Ill 10
0 $0.00 $0,00 $(J,O() 0 0
I $1.350.94 $37,50 $75.00(),OO 15 ')
.>~
0 $0,00 $0.00 $O.()O () (J
0 $0.00 $0,00 $(l.OO Iii ')
.'-
0 $(l.OO $000 $0.00 0 0
:PAIR
9 $1.5li9,25 $.H3X $81l.7J9()() 20Cl IS7
1 $895.57 $20,00 $'llJ.()O(),OO 3.1 3.1
() $0.00 $(),OO $0.00 I ()
]2 $4.459.00 $16,00 N^ 274 ~51)
40 $3.751.50 $20.00 N^ 302 298
JI
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