HRA Agenda 04-07-2004
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ANNUAL AGENDA
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, April 7,2004 - 6:00 p.m.
505 Walnut Street. Bridge Room
Commissioners:
Chair Steve Andrews, Vice Chair Bill Fair, Darrin Lahr, Dan Frie, and Brad Barger.
Council Liaison: Roger Carlson.
Stafr Rick Wolfsteller, Ollie Koropchak, and Angela Schumann.
Guests: Brad Johnson, Lotus Realty Services
Bob Cunningham, Told Development Company and Steve Johnson
I. Call to Order.
2. Consideration to approve the March 3, 2004 I IRA minutes.
3. Consideration of adding or removing items from the agenda.
4. Consent Agenda.
5. Continued - Consideration of a request for additional TIF assistance and to authorize the I IRA Attorney to
amend, accordingly, the Contract tor Private Redevelopment between Masters Fifth Avenue and the lIRA
for Landmark Square Phase If.
Continued - Consideration to hear an update on redevelopment of Block 52.
A. Consideration to authorize entering into a Preliminary Development Agreement with Told
Development Company.
Consideration to approve the election of HRA officers for 2004 and approve the appointment of
commissioners to cOlllmittees.
Consideration to review the BRA Business Subsidy Criteria and 1/1 HRA Bylaws for possible amendments
and to call for a public hearing.
Consideration to review and accept the year-end financial reports tor the liRA General Fund and TIF Fund
as prepared by HRA Treasurer Wolfsteller.
Consideration of a concept for recommendation to acquire a parcel for potential redevelopment.
Consideration to review tlnal draft of the Purchase Agreement for acquisition of land for industrial
development (Chadwick parcel).
Consideration to authorize payment of HRA bills.
Consideration of Executive Director's Report.
Comlllittee Repo/1S.
Other Business.
A. May 5, 2004 next HRA meeting (proposed date to adopt resolution for refinancing 'rl F District
No. 1-22 Bonds.)
I G. Adjournment.
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MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, March 3rd, 2004 - 6:00 p.m.
505 Walnut Street - Bridge Room
Commissioners:
Chair Steve Andrews, Vice Chair Bill Fair, Brad Barger, Dan Frie, and Council
Liaison Roger Carlson
Darrin Lahr
Rick Wolf.<;tcller, Angela Schumann
Absent:
Staff:
1 . Call to Order.
Chair Andrews called the mecting to order at 6:00 p.m. and dcclared a quorum, noting the
absence of HRA member Darrin Lallr and Economic Devclopmcnt Director Ollie
Koropchak.
2. Consideration to approve the February 4th, 2004 HRA minutes.
A MOTION WAS MADE BY TO FAIR APPROVE THE MINUTES OF TJ-IE
FEBRUARY 4TH, 2004 HRA MEETING. BARGER SECONDED THE MOTION.
MOTION CARRIED UNANIMOUSLY.
3.
Consideration of adding or removing itcms from the agenda.
None
4. Consent Agcnda.
None
5. Continued - Consideration to apProve changes to the Contract for Private Redevelopment
betwecn Masters Fifth Avcnue and thc BRA for Landmark Square Phase II.
Brad Johnson provided a report on the project, indicating that the developcrs would seek
to close on duplex property with I-IRA funds. Johnson understands that the City's
attorney has recommended a letter of crcdit be obtained in order to rclease funds lor
purchase. Johnson indicatcd that the property owner of the lot for duplexes has agreed to
sell. The developers are rcquesting that the first letter of credit expire when duplex is
completed. Therefore, they are requesting that thc contract language regarding the
expiration date change to begin November I Sl (or sooner depending on tenant) and
completing by April 1 S\ 2007. The project will pay '1'11' no matter whcn land is
purchased. Johnson indicated that $157,000 letter of credit would be rcturncd after
completion of duplex.
Johnson relayed to the commission that the final pcr lot cost is still an issuc. The
developers are still seeking a final lot cost that is closer to $30,000. Johnson stated that
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HRA Minutcs 03/03/04
currently, the per lot cost is closer to $39,000. Johnson indicated that one way to reduce
lot cost would be to lower the interest rate on the loan from 6.5% to 1 point over what
note is. He stated that the HRA could accomplish this in a formal action.
Andrews stated his concern that making this concession in this project may be setting the
stage for a similar request in future projects. Johnson re-stated his desire for the HRA to
at least consider the option, as other resulting decisions on this matter will need to be
made. J again remarked that theHRA has no risk on this project in comprison to the
Hans Hagen project. Wolfsteller notcd that when the City refinanced bonds in the
summer, the rate would be variable at 1 % over.
Fair inquired about the acceptability of the developer's proposal. Wolfstellcr stated that
in a pay-as-you-go project, the HRA would be paying the devclopcr the interest and
would still cover costs.
In regards to the developer's request to have sewer and water access charges waived,
Wolfsteller also suggested that the HRA and devclopers eon sider other alternatives.
Wolfsteller indicated that he would rather see additional tax revenues help pay back those
dollars, rather than waiving SAC and WAC.
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Johnson suggested a combination of a lower interest rate and an exploration of other
options would help the project move forward. I-Ie stated that Barry Fluth had talked with
some Council members who would like to see project move forward. Wolfsteller asked
what waiving the two fees would save the developer. Johnson estimated the savings at
about $70,000.
Fair indicated that the project meets critcria of eomprehensivc plan's vision for the CCD.
He stated that it would increase the tax base without substantial profit margin to
developer. Fair rclayed that he thinks it is possible to close the gap and move forward.
Fair stated that he believes that setting poliey and SAC and WAC fees is Council's
responsibility. Fair reported that he has no problem with lowering the interest rate.
Barger agreed, stating that they will still be covcred by an interest point. Wolsteller re-
stated that SAC and WAC ean be paid baek to the City by additional TIF.
Frie stated that a lot of work has already gone into the project and noted that the
developers mentioned that the property owners are becoming tentative. Frie would like to
help make project go forward before more change occurs. Andrews expressed his
concern about margin on interest, as hc doesn't want this to be policy. Andrews indicated
that the J-IRA has a responsibility to help reduce tax burden on the rest of the community
in the best way. rrie and Fair stated that though they agree with that, if a project could
happen at market standards, therc would be no need for HRA.
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HRA Minutes 03/03/04
Wolfsteller requested that latest financial statement on project should be prepared and
presented to the HRA.
A MOTION WAS MAOE BY FAIR TO APPROVE TIlE CHANGES AS OUTLINED
IN DRAFT FOUR OF THE CONTRACT FOR PRIVATE REDEVELOPMENT
BETWEEN MASTERS FIFTH A VENUE AND TILE HRA FOR l-,ANOMARK
SQUARE PHASE II, WITH AMENDMENTS REGARDING CONSTRUCTION AND
THE ADOITION OF A SUNSET DATE TO THE Lac. MOTION SECONDED BY
FRIE. MOTION CARRIED UNANIMOUSLY.
A MOTION WAS MADE BY FAIR TO DIRECT STAFF TO WORK WITH
DEVELOPER TO CLOSE THE PER LOT COST GAP DISCUSSED. MOTION
SECONOED BY BARGER. MOTION CARRIED UNANIMOUSLY.
6.
Continued - Consideration to hear an update on redevelopment of Block 52.
Bob Cunningham addressed the lIRA on behalf of Told Development. Cunningham
provided the BRA with a brief outline of the project to-date, including Council action to
address site concerns and their work with Steve Johnson and other adjacent property
owners. Told is not seeking action to condenm; they much prefcr to work on a willing
buyer and seller basis.
Cunningham indicated that he thinks Told will have a product to bring to the HRA
relatively soon. They have hired real estate consultant Fred Katter to work with property
owners and have made several property offers.
Cunningham reported that the process seems to be somewhat backwards from how they
usually work, as they prefer to have site control before coming to the City. He would like
to come back in April to provide an updated report on the site situation. In the meantime,
Told and Katter will be working with all property owners to move to the purchase
agreement stage.
Cunningham stated that he had read the preliminary developmcnt contract and would
discuss it further with Koropchak. He stated that he is available to answer any of the
HRA's questions.
Fair inquired about Bubul's memorandum on the properties. He noted that Bubul
recommends that the HRA does not enter into purchase agreemcnt at this time. Hc noted
that the City would not want to give Lip that property until they are certain of
redevelopmcnt project because they would be giving up some site control. Cunningham
stated that he is anxious to get project moving l<Jrward as they are cognizant of TIF
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lIRA MinLltes 03/03/04
funding deadlines. He indicated a desire to work through contingencies so that the
project can move forward. He stated that the HRA propeliy is a critical piece of the
puzzle. At this point, Cunningham wOLlld like to see the City entcring into a preliminary
purchase agreement.
Fair noted that transfer of title wOLlld need to occur by the June 30th datc. Wolfsteller
stated that he is unsure of how to proceed without entering into a formal contract, unless
the City entcred into the contract with the purchase agreement as an addendum, with the
contingency that development must proceed. Andrews stated that Bubul' s notation
indicatcs that the purchase agreemcnt becomes the development agreement/contract.
Andrews inquired about an appraisal on the HRA property. Wolfsteller stated that no
new appraisal had been donc. Barger reported an appraisal was complcted when the land
was purchased in 1996. Cunningham requcsted that a discussion on the terms and
conditions take place. Fair recommended contacting Bubullor questions related to his
notes and qucstions on the terms and conditions.
CLlnningham suggested tabling the preliminary development agreemcnt. He suggested a
conference call with Bubul, Wolfstcller and Koropchak to work out the rcmaining issues
on the purchase agreement and preliminary development contract.
A MOTION WAS MADE BY FAIR TO TABLE ANY ACTION ON THE BLOCK 52
REDEVELOPMENT PROPOSAL A T THIS TIME. MOTION SECONDED BY
BARGER. MOTION CARRIED UNANIMOUSLY.
7.
Considcration to authorize payment of HRA bills.
A MOTION WAS MADE BY FAIR TO AUTHORIZE PAYMENT' OF THE HRA
BILLS. ANDREWS SECONDED THE MOTION. MOTION CARRIED
UNANIMOUSLY.
8. Consideration of Executive Director's Report.
THE HRA ACKNOWLEDGED RECEIPT OF REPORT.
Barger inquired if there were any properties in Monticello with rail access on north side
of freeway. Wolfsteller stated that he is not aware of any properties available directly
adjacent to the railway.
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HRA Minutes 03/03/04
9.
Committee Reports.
Small Industrial
Fric reported that the Small Industrial group is working on non-binding letter of intent
with Chadwick. Council has authorized moving forward with purchase agreement. Frie
stated his belief that a City industrial park would produce favorable results lor the City.
Members of the Small Industrial group also meet with Shawn Wcinand and Charlie
Pfeffer, who expressed concerns about the City industrial park. Thei I' primary eoncern is
the assessment on potential Cty. 18/1-94 interchange. At this time, there has been no
further response from Chadwick. W olfsteller stated that City attorney has drafted a
purchase agreement. Wolfsteller stated that there may be some rcsistance on closing date,
although he docsn't believe the closing date to be unreasonable. Chadwick would keep
parcels along interstate and will market them. Frie stated there will most likely be
additional changes before the process is complete. The City will also have to try to
negotiate on a parcel to move Chelsea.
Barger stated that he had spoken with someone regarding building a motorcycle business.
He relayed infcmnation on the Renunele building and parcels along 25.
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Marketing
Barger repOlied that thc Marketing group had met with Perry Sloneker, manager of local
ComicJft Inn hotel. Sloneker is looking to Jorm a Visitors Association, as a committce
within the Chamber of Commerce. The Visitors Association would focus on building
cooperative marketing promoting Monticello's visitor resources. Fair asked what role the
City would have. Barger stated that the group would be seeking partnership funding. If
funding were provided, the City would also have a role in the direction of marketing
cHorts. HRA members expressed interest in seeing the Visitors Association proposal.
]0.
Other Business.
None.
11. Adiournment.
A MOTION WAS MADE BY FAIR TO ADJOURN THE MEETING AT 7:] 5 P.M.
FRIE SECONDED THE MOTION. MOTION CARRIED UNANIMOUSL Y.
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I-:lRA Chair
Recorder
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BRA Agenda - 04/07/04
5.
Continued - Consideration of a request for additional TIF assistance and to authorize
the HRA Attorne to amend accordin I the Contract for Private Redevelo ment
between Master's Fifth Avenue and the HRA for Landmark Square Phase II.
A. Reference and background:
It is my understanding the commissioners at the March meeting approved the changes
blacklincd by Attorney Bubul in the fourth draft of the Contract and additionally, approved
changing the construction commencement date Jrom July 1,2004, to November 1,2004, and
the construction completion date from October 1, 2006, to April I, 2007. At this point, the
Assessor's Office has not been contacted nor agreed to the minimum market value of
$l ,850,000 as of January 2,2005. Attorney Bubul and myself question whether the County
Assessor would agree to the January 2,2005, Jor full market value considering the
commencement construction is one month prior, November 1, 2004. I'm checking on this.
Brad Johnson met with Wolfsteller and Koropchak on Wednesday, March 3l, and discussed
the need for additional TIF assistance based on a revised proforma and final bids. The
additional gap was $l 00,000. At the March HRA meeting, discussion centcred around
WAC/SAC Jees and I % reduction in interest rate equal to the refinanced bonds as means to fill
the gap. Attached is the calculated amount of Jees and savings on a 5.5% interest rate. Mark
estimates the interest rate on the permanent bonds to be 5.5% to 6.5%, in other words, no
guarantee of any savings. Remember, the dollars must be eligible TIF expenditures spent prior
to June 30, 2004. Given the new information, Mr. Johnson is running a new profc)rma for
presentation at the HRA meeting. I'll have Mark Ruff review the proforma.
The HRA is faced with the same questions you addressed at the October 2003 meeting.
As Mark Ruff suggested in October, the HRA should not debate the sources and uses
statement but to answer the outlined questions and then decide whether to determine an offer.
The HRA approved a motion to otler TIF assistance in an amount not-to-exceed $157,500
NPV at 6.5% interest rate over the life of the district Jor costs associated with acquisition of
substandard homes and not-to-exceed $125,000 for costs assoeiated with demo, elec pole
relocation, utility and parking construction expended from the District No. 1-22 Fund (later
amended for acquisition of substandard homes).
The following are the questions Mark RuJf suggested in October 2003:
I. What is the value of the redevelopment project (three homes Jor nine row houses and
one duplex)? At what cost is the BRA willing to spend to redevelop the three homes?
Currently approved $282,500 plus additional request. Is the prqject a targeted
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HRA Agenda - 04/07/04
redevelopment (blighted) area? Is the redevelopment project economically feasible?
2. In the Landmark Square Phase I project, the HRA agreed to reimburse the developer
$185,000 NPV at 8% and to spend an additional $75,000 ffom the District No. 1-22
Fund to assist with costs associated with the construction of an off-site, non-restrictive
parking area (the "public purpose"). Total Phase I assistance $260,000. What is the
public purpose of the I..,andmark Square Phase II project?
B. Alternative Action:
1. A motion to approve an additional amount of TIF assistance, not to exceed
$ for cost associated with and
expended lrom District No. 1-22 TIF Funds and to authorize the HRA Attorney to
amend, accordingly, the Contraet. State reason(s).
2. A motion to deny additional TIF assistance. State reason(s).
3. A motion to table any action.
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c.
Recommendation:
First, it appears to me the developer is highly unlikely to meet the requirements for
disbursement ofthe TIF funds as outlined in the Contract. The two targeted redevelopment
areas within District No. 1-22 were Front Street and the Amoco site, however, it is hoped that
redevelopment creates other spin-off development. The Amoco concept site was initially
presented as a Phase I and II project with an initial proforma. Within the initial proforma the
cost to acquire the three houses was $315,000 (Jan 200]), the cost today is $460,000.
Celiainly, housing values have increased but the question remains at what cost to redevelop.
The f IRA may ask yourself: If the HRA were the developer, would the HRA purchase the
homes at that price? It is difficult to give a recommendation without the revised proforma.
However, if the revised proforma requests an additional $] 00,000, if would be difficult for the
City Administrator and Executive Director support a $383,500 ofTlF assistance for Phase II.
D. Supoorting Data:
WAC/SAC Fee Estimates, revised proforma if available, Letter from Community Development
Assistant, excerpt from Contract.
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LANDMARK SQUARE II
March 26, 2004
Assumption: Redevelopment of site for construction of 9 town homes and 1 duplex (2 units) at corner
of Third Street and Locust
WAC/SAC
1] new units
3 existing units
8 units balance
SAC fee - $3,5] 5 per unit x 8 =co $28,] 20 plus $60 permit = $28,180
WAC fee - $7] 2 + materials (I inch line) x 7 units = $4,984 + $230 per meter x ] 1 = $2,530 = $50
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permit =: $7,564.
TOTAL W AC/SAC FEES = $35,744 + materials.
Interest rate reduction: According to Mark Ruff the refinancing of the tax increment bonds may be at
6.5% or 5.5%. The current Contract reads the greater of 6.5%. Mark estimated a $] 5,500 savings
over time through reducing the interest rate by 1 %.
Estimate Total: $35,744 + materials + $] 5,500 = $51,244 or not greater than $60,000.
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MONTICELLO
<OO>[;Q>'t~
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' anuary _~ . ~ '
Brad Johnson
Lotus Really Services
PO Box 23 5
Chanh<lssen, MN 55317
RE: Landmark Square Phase II Site Plan Comments
Dear Mr. Johnson,
Thank YOll for YOur submission of a site plan for the proposed Landmark Square Phase II project.
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Enclosed is the site plan with COillments provided by the City of lVlonticello planning staff during
an initinl evaluation. The comments h<lve been highlighted for YOUI' review. A copy has also
been sent to Mr. Fluth for his review.
If you have an}! questions regarding the Comlnents. please contact Monticello's City Pbnner.
Stephen GrillmJn at Northwest Associated Consultants, 952-595-9636.
The LandlllJrk Square Phase II project \vas approved for a conditional use pcrmit for first floor
residentialunilS in the CCO and a concept stage PUD. It no\v requires applic<ltion and Jpproval
tl)r a development stage PUD nnd prelill1inJry plat. The requirements for that applicDtion and
approYJI process are as follows.
Completed application
Application fef'
Deposit
4 plan sets, plus one l'educed set (II x 17) 10 include:
· Sile Pliln
· GradinglDrainilgc/Utility Plan
· Building/Elevation Plan (incwca[e c.\terior finish materials)
· l-alldsclJK' Plan (speeil)' the IOc,ltion, si/::c ,lnd variety oLdl plantings)
· Lighting Plan (photoll1ctric phn with indicatcs location and illuminalioll Icvcls ot'all
outdoor lighting)
· Sign Pbn (it'dpplicable)
Mouticello City /lOlli, ')0') Walnut Slreel, Suite I, Mouticello, MN ')')]62-8R] 1 . (7(d) 2lJ,)--27 1 I . Fax: (76]) 2<)5-4404
Otliec ofl'uhtic Works, lJ()') Golf C\'UI'0C Rd., MOlllic(~lIo, MN 55162. (763) 29')-] 170. Fax: (763) 2713272
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The applicalion deadline for inclusion on lhe March Planning Commission agenda is February 91h.
A planning calendar has also been included for reference on planning cycle timelilies.
The City is also in the process of preparing a developmcnt contract for Landmark Square Phase II
project. You will receive a draft eopy upon completion few YOLlr review.
It has also come to our attention that you would like to begin construction 011 a duplex located on
lhe S.W. corner of the site as soon as possible, The city will issue a building permit at sllch time
that the development stage PUD, preliminary plat and development agreement affecting thc entire
PlJD have been approved and executed. Construction may be allowed to Occur prior to approval
of the final plat if necessary to meet your time line.
We appreciate all of the time and effort involved in preparing the requested information, Ifyoll
have any questions, please do not hesitate to call.
Sincerely,
Ut
Angela Sc lllmann
Community Development Assistant
cc: JetTO'Neill, Deputy City Administrator/Community Development Director
Ollie Koropchak, Economic Development Director
Stephen Grittll1an, NAC
File
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Section 3.3. Payment of Administrative Costs. The Developer agrees that it will pay
upon demand by the Authority, Administrative Costs (as hereafter defined). For the purposes of
this Agreement, the term "Administrative Costs" means out-of-pocket costs incurred by 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,
statements, or other reasonable written evidence of the costs incurred by the Authority. As of the
date of this Agreement, the Developer has deposited $5,000 with the Authority ($2,000 being the
amount remaining hom a prior deposit in connection with a previous redevelopment and $3,000
deposited under the Preliminary Agreement) to be applied toward Administrative Costs. If the
Authority's actual Administrative Costs exceed the amount on deposit, Redeveloper remains
obligated to pay such additional amounts upon demand by the Authority. If the Authority's
actual Administrative Costs are less than the amount on deposit, the Authority shall, upon
demand by the Developer, returned such excess to the Developer, but no earlier than the date on
which the Developer receives a Certificate of Completion for all the Minimum Improvements
pursuant to Section 4.4 of this Agreement. As of the date of this Agreement, Administrative
Costs are estimated to total approximately $5,000 but the Authority makes no warranty that
actual Administrative 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 3.4. Land Acquisition Costs. In order to make development of the Minimum
Improvements economically feasible, the Authority will reimburse the Developer for up to
$282,500 of the Developer's cost of acquisition for any portion of the Development Property
acquired by Redeveloper after the date of this Agreement (the "Land Acquisition Costs"). The
parties acknowledge that the Authority will finance such reimbursement with proceeds of the
TIF Bonds, all in accordance with the following terms:
(a) The Authority will disburse $157,500 (the "First Disbursement") upon the
Developer's satisfaction of the following conditions:
(i) receipt and approval by the Authority's executive director of a copy of
purchase agreements for the parccls of the Development Property to be reimbursed 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 having approved construction plans for the Minimum
Improvements in accordance with Article IV, and the City having approved any plat and
planned unit development necessary to construct the Minimum Improvements;
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(vi:y) The Developer must have obtained approval from the Authority and the City
of a parking and traiIic plan satisfactory in the sole respective judgment of the Authority
and the City, such plan to provide for at least adequate unrestricted parking spaces on the
block on which the Development Property is located and fully executed easements and
other agreements allowing for the construction, operation, and maintenance of the
parking spaces and cgresses and ingresses to the block on which the Development
Property is I ocated~
-~- iV\J~Redevel2ner ha,s del2osit~d with the AUlhoritv an irrevocable bankJctt~r of
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~I~siiL.it:l_J11~ilmQlmt._.oL.~Jg"5_QiLil!__ a...~tQIJl! -'!~c~m-ablpJiL!h~_AllthQrjtv ~ Or?ltern,!ti.Y~
~eGmLty",.ll.c",,:~nlabIe_..!9 th~ J.\.JJ1hQriJ~'YhiGb letter -~or cre~jjt SCG,],l.I~S".Redcv_eJQ~(~
pbligatiQ.[! tQ,gollHllenc.9 an~t cOIJ)Dletc" COll,~truCtjon Qf all the M.i,niml.l!n Im.12.rov~meDts a:,!
r~ir~_~l!I1PeI.b-r1i<::.!e JY11~9oL and
(vi) there is no uncured Event of Default.
(b) The Authority will disburse $125,000 (the "Second Disbursement") upon the
Developer's satisfaction of the following conditions:
(i) the conditions set forth in (a) were and continuc to be met;
(ii) receipt and approval by the Authority's executive director of a copy of
purchase agreements for the parcels of the Development Property to be reimbursed and a
copy of the certificate of value from closing on that acquisition, showing Land
Acquisition Costs in at least the amount to be disbursed, and in excess of the amount
disbursed under paragraph (a)-,-au&-;
(i i i) the r-e-l:fH3at-i-Hu..,t}f+he--tH..i-ht-y-pt}J-e-on--tBe.4~}eveJ~Jj7fHeHt".._..I-!re-perty--ftaS--ft€6-UfI'et!
tB-tJl-e-S-a+-i-s-+ilt4--i-fH'HtHllt'--GtI:y-:.-
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irhi€€f}fE!:-ance...;-vi-th-Arfi-elel--Vi..,,--......fv)-..__tfie-..... Redev eloper has d epo si ted wi th th e
Authority an irrevocable bank letter of credit in the amount of $] 25,000 in a form
acceptable to the Authority, or alternative security acceptable to the Authority, which
lettcr of credit secures Redeveloper's obligation tOcQrnm~,!lCJ~__llIld~completc construction
of all the Minimum Improvements as required under Article IV hereof; finE}
(viL!:) receipt by the Authority's Executive Director of a copy of the articles of
incorporation, bylaws, and any restrictive covenants for the townhome or condomimum
association created for the Minimum Improvements~pd
,~=,~=.,(xl1hfn:.;",i~~IW~Jlf~\,!!J~.d,_t;y~~Jg_~QLQ,~f~1Jlt.
(c) Notwithstanding anything to the contrary herein, no disbursements will be made
under this Section after June 30, 2004, and if the conditions for making either the First
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Disbursement or the Second Disbursement are not met by that date, the Authority has no further
obligation to reimburse Developer for any undisbursed amounts under this Section.
(d) The total principal amount of the First Disbursement (the "Principal Amount") shall
be treated as a loan, repayable to the Authority in accordance with the following terms and
conditions:
(i) The Principal Amount shall be repaid, together with interest thercon on at a
rate of interest that is the greater of rate of 6.5% per annum or the rate reflecting the true
interest cost of long-term bonds issued to refund the temporary TIF Bonds, accrued from
the date of the First Disbursement ("First Disbursement Date"), in semi-annual
installments payable on each August I February 1, commencing August 1, 2006 and
continuing through February 1, 2022 (each a "Payment Date"). Thc payments shall be in
the amounts set forth in Exhibit B hereto, provided that upon issuance of the long-term
TIF Bonds, Exhibit B will be revised to reflect the adjustment in interest rate if the true
interest cost on the TIF Bonds is greater than 6.5%.
(ii) Payments shall be applied first to accrued interest and then to unpaid
principal. Interest accruing from the First Disbursement Date to the first payment date
will be compounded semiannually on each February I and August 1 and added to thc
Principal Amount.
.
(iii) The parties agree and understand that the amount of Available Tax
Increment received by the Authority as of any Payment Date shall be credited as a
payment by and on behalf of the Developer under this Section. The term "Available Tax
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 Date.
(iv) If on any Payment Date the amOWlt of Available Tax Increment is
insufficient to pay the amount due on that Payment Date, the Developer shall pay to the
Authority, within lO days of written demand by the Authority, an amount equal to the
difference between the amount payable under Exhibit B and the Available Tax Increment
actually received by the Authority as of that Payment Date. The Developer hereby
acknowledges that the amount of Available Tax Increment is subject to change in State
law and calculation by the State and County and that any such variation shall not impair
the Authority's rights or the Developer's obligations hereunder. The Developer agrees
and understands that Available Tax Increment is subject to calculation by the County and
change in State law. The Developer further agrees and understands that estimates of
Available Tax Increment provided by the Authority and its agents, officers, or employees
are estimates only and not intended for the Developer's reliance.
.
(v) On February 1, 2011 and February I of each fourth year thereafter (each an
"Evaluation Date"), if the Developer has made any deficiency payment to the Authority
under clause (iv) at any time before that Evaluation Date (which deficiency has not becn
reimbursed on any prior Evaluation Date) then on that Evaluation Date thc Authority
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shall reimburse the Developer for the aggregate deficiencies paid by Developer to date,
but only to the extent the Authority has Available Tax Increment in excess of the amount
needed to credit the payment due on that payment date.
(vi) The Authority shall treat any Available Tax Increment received in excess of
the amount due on any Payment Date (after making any reimbursement under clause (v)
above) as a prepayment of the Principal Amount and interest thereon, provided that such
prepayment shall not alter the timing or amounts otherwise due as set forth in Exhibit B.
(vii) The Authority makes no warranties or representations that Available Tax
Increment will be sufficient to pay the Principal Amount or interest thereon.
Section 3.5. Use of Tax Increment. Except as set forth herein, the Authority shall have
no obligation to the Developer with regard to its use of Tax Increment and may use Tax
Increment and for any lawful purposes, whether set forth herein or otherwise.
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ARTICLE IV
Construction of Minimum Improvements
Section 4.1. Construction of Improvements. The Developer agrees that it will construct
the Minimum Improvements on the Development Property in accordance with the approved
Construction Plans and will operate and maintain, preserve and keep the Minimum
Improvements or cause them to be maintained, preserved and kept with the appurtenances and
every part and parcel thereof, in good repair and condition. The Authority shall not have any
obligation to operate or maintain the Minimum Improvements.
Section 4.2. Construction Plans. (a) Before the First Disbursement of Land Acquisition
Costs under Seetion 3.4 hereof, the Developer shall submit to the Authority Construetion Plans.
The Construction Plans shall provide for the construction of the Minimum Improvements and
shall be in eonformity with the Redevelopment Plan, this Agreement, and all applicable State and
loeallaws and regulations. The Authority will approve the Construction Plans in writing if: (i)
the Construetion Plans conform to the terms and conditions of this Agreement; (ii) the
Construction Plans conform to the goals and objectives of the Redevelopment Plan; (iii) the
Construetion Plans eonform to all applicable federal, state and local laws, ordinances, rulcs and
regulations; (iv) the Construetion Plans are adequate to provide for eonstruetion ofthc Minimum
Improvements; (v) the Construction Plans do not provide for expenditurcs in exeess of the funds
available to the Developer from all sources for construetion of the Minimum Improvements; and
(vi) no Event of Default has occurred. Approval may be based upon a review by the City's
Building Offieial of the Construetion Plans. No approval by the Authority shall relieve the
Developer of the obligation to comply with the terms of this Agreement or of the Redevelopment
Plan, applicable federal, state and local laws, ordinanees, rules and regulations, or to construct
the Minimum Improvements in accordance therewith. No approval by the Authority shall
constitute a waiver of an Event of Default. If approval of the Construction Plans is requested by
the Developer in writing at the time of submission, such Construction Plans shall be deemed
approved unless rejected in writing by the Authority, in whole or in part. Such rejections shall
set forth in detail the reasons therefiJre, and shall be made within 10 days after 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 after written
notification to the Developer of the rejection. The provisions of this Section relating to approval,
rejection and resubmission of corrected Construction Plans shall continue to apply until the
Construction Plans have been approved by the Authority. The Authority's approval shall not be
unreasonably withheld. Said approval shall constitute a conclusive dctermination that the
Construction Plans (and the Minimum Improvements constructed in accordance with said plans)
comply to the Authority's satisfaction with the provisions of this Agreement relating thereto.
(b) If the Developer desircs to make any Material change in the Construction Plans
after their approval by the Authority, the Developer shall submit the proposed change to the
Authority for its approval. If the Construction Plans, as modified by the proposed change,
con1orm to the requirements of this Section 4.2 of this Agreement with respect to such
previously approved Construction Plans, the Authority shall approve the proposed change and
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notify the Developer in writing of its approval. Such change in the Construction Plans shall, in
any event, be deemed approved by the Authority unless rejected, in whole or in part, by written
notice by the Authority to the Developer, setting forth in detail the reasons therefor. Such
rejection shall be made within ten (10) days after receipt of the notice of such change. The
Authority's approval of any such change in the Construction Plans will not be unreasonably
withheld.
Section 4.3. Commencement and Completion of Construction. Subject to Unavoidable
Delays, the Developer shall commence construction of the duplex portion of the Minimum
Improvements by MayJ.Ylx 1, 2004, and shall substantially complete the construction of all the
Minimum Improvements by October 1, 2006. All work with respect to the Minimum
Improvements to be constructed or provided by the Developer on the Development Property
shall be in conformity with the Construction Plans as submitted by the Developer and approved
by the A uthori ty ==EoLtlLWhU:l1Q~q~Qf!l)jii~~.lli:~emem,,,,:fQmm~nyJ:nJ~llt:~xn~a.n-5-iliRLaU~~i~jJ!g
hyi.I.(,Eng~Jl~lYLheen_.. denlQJi~J]~(L an(t,il}.~t~IIJ{!Jj(n).....(?J:........tf}(rting:~.,......... t().\.l.I).d~.lti().J).S.......\'.'.I' .......()l!l e r .......Vi5.i.b.I..G
iJllpr(YY('~ITJe.n(~1:)\,'"Y(~)\)\J....S'.').9IVL1JjqniJndgr;J~jing have commenced.
.
The Developer agrees for itself, its successors and assigns, and every successor in interest
to the Development Property, or any part thereof, that the Developer, and such successors and
assigns, shall promptly begin and diligently prosecute to completion the development of the
Development Property through the construction of the Minimum Improvements thereon, and that
such construction shall in any event be commenced and completed within the period specified in
this Section 4.3 of this Agreement. The obligation to construct the Minimum Improvements in
accordance with this Section touches and concerns the land, and shall run with the property and
he binding upon all successors and assigns to the Development Property. After the date of this
Agreement and until construction of the Minimum Improvements has been completed, 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.
Section 4.4. Certificate of Completion. (a) Promptly after completion of the Minimum
Improvements (or any individual unit thereof, at Developer's request) in accordance with those
provisions of the Agreement relating solely to the obligations of the Developer to construct the
Minimum Improvements (including the dates fc)r beginning and completion thereof), thc
Authority will furnish the Developer with a Certificate shown as Exhibit D. Such certification
and such determination shall not constitute evidence of compliancc with or satisfaction of any
obligation of the Developer to any Holder of a Mortgage, or any insurer of a Mortgage, securing
money loaned to finance the Minimum Improvements, or any part thereof.
(b) If the Authority shall refuse or fail to provide any certification in accordance with
the provisions of this Section 4.4 of this Agreement, the Authority shall, within thirty (30) days
after written rcquest by the Developer, provide thc Developer with a written statement,
indicating in adequate dctail in what respects the Developer has failed to complete the Minimum
Improvements in accordance with the provisions of the Agreement, or is otherwise in default,
and what measures or acts it will be necessary, in the opinion of the Authority, for the Developer
to take or perform in order to obtain such certification.
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( c) The construction 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
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 Minimum Improvements.
Redeveloper shall also use best efforts to cause the contractor or contractors, all sub-contractors
and their agents, and lenders to make their books and records relating to the Project to the
Authority and City, upon reasonable notice, for inspection, examination and audit. Such records
shall he kept and maintained by Redeveloper through the Maturity Date.
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ARTICLE VI
Tax Increment; Taxes
Section 6.1. Right to Collect Delinquent Taxes. The Developer acknowledges that the
Authority is providing substantial aid and assistance in furtherance of the development The
Developer understands that the tax increment intended to pay expenses of the Authority and the
Developer are derived from real estate taxes on the Development Property, 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 Agreement to pay before delinquency all real estate taxes assessed
against the Development Property and the Minimum Improvements. The Devcloper
acknowledges that this obI igation creates a contractual right on behalf of the Authority to 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 its costs, expenses, and attorney fees.
Section 6.2. Review of Taxes. The Developer agrees that prior to the Maturity Date it
will not cause a reduction in the real property taxes paid in respect of the Development Property
through: (A) willful destruction of the Development Property or any part thereof; or (B) willful
refusal to reconstruct damaged or destroyed property pursuant to Section 5.1 of this Agreement,
except as provided in Section 5.1 (e). '1'he Developer also agrees that it will not, prior to the
Maturity Date, seek exemption from property tax for the Development Property or any portion
thereof or transfer or permit the transfer of the Development Property to any entity that is exempt
from real property taxes and state law (other than any portion thereof dedicated or conveyed to
the City in accordance with platting of the Development Property), or apply for a deferral of
property tax on the Development Property pursuant to any law.
Scction 6.3. Assessment Agreement (a) Upon of this Agreement, the Developer shall,
with the Authority, execute an Assessment Agreement pursuant to Minnesota Statutes, Section
469.177, subd. 8, specifying an assessor's minimum market value (the "Minimum Market
Value") for the Development Property and the Minimum Improvements constructed thereon.
The amount of the Minimum Market Value shall be $1,850,000 as of January 2,2005 and each
January 2 thereafter through the Maturity Date.
(b) The Assessment Agreement shaIl be substantiaIly in the form attached hereto as
Exhibit C. Nothing in the Assessment Agreement shall limit the discretion of the assessor to
assign a market value to the property in excess of the Minimum Market Value. The Assessment
Agreement shall remain in force for the period specified in the Assessment Agreement. The
Developer shall cause the Assessment Agreement to be consented to by any Holder of a
Mortgage.
Section 6.4. Qualifications. Notwithstanding anything herein to the contrary, the parties
acknowledge and agree that the provisions of Sections 6.1, 6.2 and 6.3 hereof shall not apply to a
residential unit within the Minimum Improvements from and after the date that such unit is
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substantially completed and sold to a third party. The Assessment Agreement shall include a
termination provision substantially reflecting the terms of this paragraph.
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ARTICLE VII
Financine
Section 7.1. Mortgage Financing. (a) Before the First Disbursement of Land Acquisition
Costs under Section 3.4 hereof, the Developer shall submit to the Authority evidence of one or
more commitments for mortgage financing which, together with committed equity fClr such
construction, is sufficient for the acquisition of the Development Property and constructing the
Minimum Improvements. Such commitments may be submitted as short term financing, long
term mortgage financing, a bridge loan with a long term take-out financing commitment, or any
combination of the foregoing. Such commitment or commitments for short term or long term
mortgage financing shall be subject only to such conditions as are normal and customary in the
mortgage banking industry.
(b) If the Authority finds that the mortgage financing is sufficiently committed and
adequate in amount to provide for acquiring the Development Property and constructing the
Minimum Improvements then the Authority shall notify the Developer in writing of its approval.
Such approval shall not be unreasonably withheld and either approval or rejection shall be given
within thirty (30) days from the date when the Authority is provided the evidence of mortgage
financing. A fai lure by the Authority to respond to such evidence of mortgage financing shall be
deemed to constitute an approval hereunder. If the Authority rejects the evidence of mortgage
financing as inadequate, it shall do so in writing specifying the basis for the rejection. In any
event the Developer shall submit adequate evidence of mortgage financing within thirty (30)
days after such rejection.
Section 7.2. Authority's Option to Cure Default on Mortgage. In the event that there
occurs a default under any Mortgage authorized pursuant to this Agreement, the Developer shall
cause the Authority to receive copies of any notice of default received by the Developer from the
holder of such Mortgage. Thereafter, the Authority shall have the right, but not the obligation, to
cure any such default on behalf of the Developer within such cure periods as are available to the
Developer under the Mortgage documents.
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EXHIBIT C
ASSESSMENT AGREEMENT
and
ASSESSOR'S CERTIFICATION
By and Between
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO
and
MASTER'S FIFTH AVENUE, INC.
This Document was drafted by:
KENNEDY & GRA YEN, Chartered
470 Pillsbury Center
Minneapolis, Minnesota 55402
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ASSESSMENT AGREEMENT
THIS AGREEMENT, made on or as of the _ day of , 2004, 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 AVENUE, INC., a Minnesota corporation (the "Developer").
WITNESSETH, that
WHEREAS, the Authority and the Developer entcred into a Contract for Private
Development dated , 2004 (the "Contract"), pursuant to which the Authority is to
facilitate development of certain property in the City of Monticello hereinafter referred to as the
"Property" and legally described in Exhibit A hereto; and
WHEREAS, pursuant to the Contract the Developer will construct certain improvements
upon the Development Property (the "Minimum Improvements"); and
WHEREAS, the Authority and the Developer desire to establish a minimum market value
for the Propcrty and the improvements constructed thereon, pursuant to Minncsota Statutes,
Scction 469.177, Subdivision 8; and
WHEREAS, the Authority and the Assessor for Wright County (the "Assessor") have
reviewed the plans and specifications fClr the improvements and have inspected such
improvements;
NOW, THEREFORE, the parties to this Agreement, in consideration of the promises,
covenants and agreements made by each to the other, do hereby agree as follows:
1. The minimum market value which shall be assessed for ad valorcm tax purposes
for the Property described in Exhibit A, together with the Minimum Improvements
constructed thereon, shall be $ , as of January 2, 2005 notwithstanding the
progress of construction by such date, and as of each January 2 thereafter until termination of
this Agreement; provided, however, that upon initial sale of any single family residential unit
or duplex to a third party, the minimum market value herein established shall be of no further
force or effect as to the unit so transferred, and the minimum market value for the remaining
Property shall be deemed to have been reduced by the estimated market value (as determined
by the Assessor) of the property transferred. Upon such sale, the Authority will deliver to the
Redeveloper or property purchaser an instrument in recordable form that releases the
transferred property from any encumbrance created by this Agreement.
2. The minimum market value herein established shall be of no further force and
effect and this Agreement shall terminate on the Maturity Date as defined in Contract.
3. This Agreement shall be promptly recorded by the Authority. The Redeveloper
shall pay all costs of recording.
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4. Neither the preambles nor provisions of this Agreement are intended to, nor shall
they be construed as, modifying the terms of the Redevelopment Contract between the Authority
and the Redeveloper.
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 al I
actions required of it, and has taken all actions necessary to authorize the execution and delivery
of this Agreement.
7. In the event any proVIsIOn of this Agreement shall be held invalid and
unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render
unenforceable any other provision hereof.
8. The parties hereto agree that thcy will, from time to time, executc, acknowledge
and deliver, or cause to be executed, acknowledged and delivered, such supplements,
amendments and modifications hereto, and such further instruments as may reasonably be
required for correcting any inadequate, or incorrect, or amended description of the Property or
the Minimum Improvements or for carrying out the expressed intention of this Agreement,
including, without limitation, any further instrumcnts required to delete from the description of
the Property such part or parts as may be included within a separate assessment agreemcnt.
9. Except as provided in Section 8 of this Agreement, this Agreement may not be
amended nor any of its terms modified except by a writing authorized 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 constitute but 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:
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Its Chair
By:
Its Executive Director
STATE OF MINNESOTA )
) SS.
COUNTY OF WRIGHT )
The foregoing instrument was acknowledged before me this _ day of
2004, by and Olive Koropchak, the Chair and Executive
Director of the Housing and Redevelopment Authority in and for the City of Monticello,
Minnesota, on behalf of the Authority.
Notary Public
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STATE OF MINNESOTA )
) SS.
COUNTY OF WRIGHT )
MASTER'S FIFTH A VENUE, INC.
By:
Its:
The foregoing instrument was acknowledged before me this _ day of
, 2004, by , the of
Master's Fifth A venue, Inc. a Minnesota corporation, on behalf of the corporation.
EMT-240630v3
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Notary Public
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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 filed
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.
STATE OF MINNESOTA
COUNTY OF
By:
Its:
By:
Its:
)
) SS.
)
The foregoing instrument was
, 2004 by
me this _.~ day of
, the
of , on
behalf of the bank.
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acknowledged before
and
and
Notary Public
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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
2004 by , the County Assessor of the County of Wright.
Notary Public
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HRA Agenda - 04/07/04
6.
Continued - Consideration to hear an update on redevelopment of Block 52.
According to Fred Katter, he is proceeding to find a replacement building or lot to build f(x
Titan Electric. Katter noted there is a purchase agreement on the Froslie building, Bob
Cunningham noted the agreement with Froslie had not been cxccutcd. Stating the project was
more difficult than anticipated.
I belicve Bob Cunningham will be at the HRA meeting for an update or perhaps a rcquest.
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6A.
HRA Agenda - 04/07/04
Consideration to authorize enteriDl! into a Preliminary Development Aereement with
Told Develollment Company.
'rhe I IRA entered into a Preliminary Development Agreement with SCJ Development Ciroup,
LLC on December 16, 2002, for redevelopment on the Johnson corner lot and HRA lot. The
Agreement was effective from the date hereof through December 31, 2003. The Developer
had deposited $5,000 of which the HRA will return to the Developer any non-utilized funds as
of the termination date.
As the commissioners were informed at the February HRA meeting, the developer of the
proposed project is now Told Development Company. In a conversation with Bob
Cunningham, Told Development Company, the company was willing to enter into a Preliminary
Development Agreement with the l-lRA and submit the deposit 01'$7,500.
It is my understanding at the March meeting, the HRA did not approve entering into the
agreement as perhaps the developers changed his mind and saw the project as premature.
Unable to connect or talk directly with Mr. Cunningham, no communication has occurred
between HRA staff, lIRA attorney, and the devcloper as suggested by the commissioners last
month. Typically, until the HRA has a Preliminary Agreement and deposit, the HRA attorney
is not brought into the picture.
As Attorney Bubul's comments, the proposed acquisition of the HRA lot would be defined
within the Contract for Private Redevelopment. Should the occasion arise, what is the selling
price of the lIRA lot? Purchased in 1996 for $50,000 "as is", 1996 appraisal $37,000,
B. Alternative Action:
I. A motion to approve entering into a Preliminary Development Agreement with Told
Development Company, deposit of $7,500, effective date June 30, 2004, for the
proposed Walgreen's project.
2. A motion to deny approval to enter into a Preliminary Development Agreement with
Told Development Company. State reason.
3, A motion to table any action.
C. Recommendation:
The City Administrator, Executive Director, and HRA Attorney recommend Alternative NO.1.
.
HRA Agenda - 04/07/04
This to insure any cost incurred by the lIRA through the suggested effective date are covered
and allows staff to proceed with contract preparation, if necessary, prior to the May HRA
meeting. Should Mr. Cunningham indicate confirmation to acquire the other parcels, the liRA
might discuss selling price of the HRA lot.
Should the project not proceed and not meet the eligible expenditure date ofJune 30, 2004, a
Contract for Private Redevelopment executed, and plans approved; the HRA could then
consider establishment of a new TIr District. However, under this scenario no TIr 1-22
District Funds are available.
D. Supportin2 Data:
Copy of Preliminary Development Agreement and Bubul's comments of February 27, 2004.
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HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO, MINNESOTA
PRELIMINARY DEVELOPMENT AGREEMENT
THIS AGREEMENT, dated this _ day of ,20 by and between the
Housing and Redevelopment Authority in and for the City of Monticello. Minnesota, a public body
corporate and politic under the laws of Minnesota ("Authority") and
("Developer"):
WITNESSETH:
WHEREAS, the Authority desires to promote development of certain property within the
City of MonticeIIo, which property is legally described in Exhibit A attached hereto ("Property");
and
WHEREAS, the Developer has submitted a preliminary proposal (the "Proposal") for
development of the Property (the "Development"), which proposal is attached hereto as Exhibit B;
and '
WHEREAS, the Developer has requested the Authority to explore the use of certain public
assistance to assist with the Development: and
WHEREAS, the Authority has determined that it is in the Authority's best interest that the
Developer be designated sole developer of the Property during the term of this Agreement; and
WHEREAS, the Authority and the Developer are willing and desirous to undertake the
Development if (i) a satisfactory agreement can be reached regarding the Authority's commitment
for public costs necessary for the Development; (ii) satisfactory mortgage and equity financing, or
adequate cash resources for the Development can be secured by the Developer; and (iii) the
economic feasibility and soundness of the Development and other necessary preconditions have
been determined to the satisfaction of the parties; and
WHEREAS, the Authority is willing to evaluate the Development and work toward all
necessary agreements with the Developer if the Developer agrees to reimburse the Authority for its
costs if the Development is abandoned or necessary agreements are not reached under the terms of
this Agreement.
NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and
obligations set forth herein, the parties agree as follows:
1. Negotiations between the parties shall proceed in an attempt to formulate a definitive
development contract ("Contract") based on the following:
(a) the Developer's Proposal, which shows the scope of the proposed
Development in its latest form as of the date of this Agreement, together with any changes
[).J(j-200887v I
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or modifications required by the Authority;
(b) a mutually satisfactory Contract to be negotiated and agreed upon 111
accordance with negotiations contemplated by this Agreement;
(c) such documentation regarding economic feasibility of the Project as the
Authority may wish to undertake during the term of this Agreement; and
(d) other terms and conditions of this Agreement.
2. It is the intention of the parties that this Agreement: (a) documents the present
understanding and commitments of the parties; and (b) will lead to negotiation and execution of a
mutually satisfactory Contract for the Development prior to the termination date of this Agreement.
The Contract (together with any other agreements entered into between the parties hereto
contemporaneously therewith) when executed, will supersede all obligations of the parties
hereunder.
3. During the term of this Agreement, the Developer shall:
(a) Submit to the Authority a design proposal to be approved by the Authority
showing the location, size, and nature ofthe proposed Development, including f100r layouts,
renderings, elevations, and other graphic or. written explanations of the Development. The
design proposal shall be accompanied by a proposed schedule for the starting and
completion of all phases of Development.
(b) Submit an over-all cost estimate for the design and construction of the
Development.
(c) Submit a time schedule for all phases of the Development.
(d) Undertake and obtain such other preliminary economic feasibility studies,
income and expense projections, and such other economic information as the Developer
may desire to further confirm the economic feasibility and soundness of the Development.
(e) Submit to the Authority the Developer's financing plan showing that the
proposed Development is financially feasible.
(f) Furnish satisfactory, financial data to the Authority evidencing the
Developer's ability to undertake the Development.
4. During the term of this Agreement the Authority agrees to:
(a) Commence the process necessary to undertake such public assistance as is
necessary pursuant to the terms of the Proposal.
(b) Proceed to seek all necessary information with regard to the anticipated
public costs associated with the Development.
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(c) Estimate the Authority's level and method of financial participation, if any,
in the Development and develop a financial plan for the Authority's participation.
5.
subjectto:
It is expressly understood that execution and implementation of the Contract shall be
(a) A determination by the Authority in its sole discretion that its undertakings
are feasible based on (i) the projected tax increment revenues and any other revenues
designated by the Authority; (ii) the purposes and objectives of any tax increment,
development, or other plan created or proposed for the purpose of providing financial
assistance for the Development; and (iii) the best interests of the Authority.
(b) A determination by the Developer that the Development is feasible and in
the best interests of the Developer.
6. This Agreement is effective from the date hereofthroug~ ~O , 200~. After
such date, neither party shall have any obligation hereunder except as expressly set fOlih to the
contrary herein.
7. the Developer shall be solely responsible for alI costs incurred by the Developer. In
addition, the Developer shall reimburse the Authority for Administrative Costs, as hereafter defined.
For the purposes of this Agreement, the term "Administrative Costs" means out of pocket costs
incurred by the Authority together with staff costs of the Authority. all attributable to or incurred in
connection with the negotiation and preparation of this Agreement the Contract. and other
documents and agreements in connection with the Development.
In order to secure payment of the Administrative Costs, the Developer shall deliver to the
Authority cash or a certified check in the amount of :$7.. 500 such delivery to occur upon execution
of this Agreement. If at anyone or more times during the term of this Agreement, the Authority
determines that Administrative Costs will exceed$]. 500and that additional security is required, the
Authority shall notify the Developer of the amount of such additional security. Within ten calendar
days of receipt of this notice, the Developer shall deliver to the Authority the required additional
security. The Authority will utilize the funds delivered by the Developer to payor reimburse itself
for Administrative Costs. Upon termination of this Agreement, the Authority will return to the
Developer the funds paid by the Developer to the Authority pursuant to this Section 7, less an
amount equal to the Administrative Costs.
This Section 7 shall survive termination of this Agreement and shall be binding' on the
Developer regardless of the enforceability of any other provision of this Agreement.
8. This Agreement may be terminated upon 5 days written notice by the Authority to
the Developer if:
(a)
an essential precondition to the execution of a contract cannot be met; or
(b)
if, in the respective sole discretion of the Authority or the Developer, an
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impasse has been reached in the negotiation or implementation of any material term or
condition of this Agreement or the Contract; or
(c) The Authority determines that its costs in performing under this Agreement
will exceed $7 ,sooand the Developer does not deliver additional security to the Authority
pursuant to Section 7 of this Agreement.
If the Authority terminates the Agreement under this Section 8, the Developer shall remain
liable to the Authority under Sections 6 and 7 of this Agreement for costs incurred by the Authority
through the date of termination.
9. the Developer is designated as sole developer of the Property during the tenn of this
Agreement.
10. In the event that the Developer, its heirs, successors or assigns, fail to comply with
any of the provisions of this Agreement, the Authority may proceed to enforce this Agreement by
appropriate legal or equitable proceedings, or other similar proceedings, and the Developer, its
heirs, successors or assigns, agree to pay all costs of such enforcement, including reasonable
attorneys' fees.
II. If any portion of this Agreement is held invalid by a court of competent jurisdiction,
such decision shall not affect the validity of any remaining portion of the Agreement.
12. In the event any covenant contained in this Agreement should be breached by one
party and subsequently waived by another party, such waiver shall be limited to the particular
breach so waived and shall not be deemed to waive any other concurrent, previous or subsequent
breach.
13. Notice or demand or other communication between or among the parties shall be
sufficiently given if sent by mail, postage prepaid, retum receipt requested or delivered personally:
(a) As to the Authority: Housing and Redevelopment Authority
in and for the City of Monticello
505 Walnut Street, Suite I
Monticello, MN 55362-8822
Attn: Executive Director
(b) As to the Developer:
14. This Agreement may be executed simultaneously in any number of counterparts, all
of which shall constitute one and the same instrument.
15. This Agreement shall be governed by and construed in accordance with the laws of
DJ(i-200R87v I
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the state of Minnesota. Any disputes. controversies. or claims arising out of this Agreement shall be
heard in the state or federal courts of Minnesota, and all parties to this Agreement waive any
objection to the jurisdiction of these courts, whether based on convenience or otherwise.
16. The Developer hereby agrees to protect, defend and hold the Authority and its
officers, elected and appointed officials, employees, administrators, commissioners, agents, and
representatives harmless from and indemnified against any and all loss, cost, fines, charges,
damage and expenses, including, without limitation, reasonable attorneys fees, consultant and
expeli witness fees, and travel associated therewith, due to claims or demands of any kind
whatsoever arising out of (i) the development, marketing, sale or leasing of all or any part of the
Property, including, without limitation, any claims for any lien imposed by law for services,
labor or materials furnished to or for the benefit of the Property, or (ii) any claim by the state of
Minnesota or the Minnesota Pollution Control Agency or any other person pertaining to the
violation of any permits, orders, decrees or demands made by said persons or with regard to the
presence of any pollutant, contaminant or hazardous waste on the Property; and (iii) or by reason
of the execution of this Agreement or the performance of this Agreement. The Developer. and
the Developer's successors or assigns, agree to protect, defend and save the Authority, and its
officers, agents, and employees, harmless from all such claims, demands, damages, and causes of
action and the costs, disbursements, and expenses of defending the same, including but not
limited to, attorneys fees, consulting engineering services, and other technical, administrative or
professional assistance. This indemnity shall be continuing and shall survive the perforn1ance,
termination or cancellation of this Agreement. Nothing in this Agreement shall be construed as a
limitation of or waiver by the Authority of any immunities, defenses, or other limitations on
liability to which the Authority is entitled by law, including but not limited to the maximum
monetary limits on liability established by Minnesota Statutes, Chapter 466.
] 7. The Developer, for itself, its attorneys, agents, employees, former employees,
insurers, heirs, administrators, representatives, successors, and assigns, hereby releases and forever
discharges the Authority, and its attorneys, agents, representatives, employees, former employees,
insurers, heirs, executors and assigns of and from any and all past, present or future claims,
demands, obligations, actions or causes of action, at law or in equity, whether arising by statute,
common law or otherwise, and for all claims for damages, of whatever kind or nature, and for all
claims for attorneys' fees, and costs and expenses, including but not limited to all claims of any kind
arising out of the negotiation, execution, or performance of this Agreement between the parties.
[REMAINDER OF PAGE INTENTIONALL YLEFT BLANK]
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IN WITNESS WHEREOF, the Authority has caused this Agreement to be duly executed in
its name and behalf and its sea) to be duly affixed hereto and the Developer has caused this
Agreement to be duly executed as of the day and year first above written.
DEVELOPER
By
Its:
By
Its:
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HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE
CITY OF MONTICELLO, MINNESOTA
By
Its Chair
By
Its Executive Director
7
MEMORANDUM
. TO: Ollie Koropchak
Rick W oIfsteller
FROM: Stephen BubuI
DATE: February 27,2004
RE: Proposal to Acquire HRA Property
You asked me to comment on a proposed Letter of Intent by Meridian AFT LLC (d/b/a TOLD
Development Company) to acquire certain property owned by the HRA.
Generally, when the HRA sells property, it enters into a purchase and redevelopment agreement that
specifies:
1. The typical terms of sale (purchase price, title contingencies, etc); and
2. The improvements the buyer must make according to a specified construction
schedule. lfthe required improvements are not completed on time, the HRA retains the right to take
the property back.
.
The HRA also needs to hold a public hearing before the sale. If the buyer seeks tax increment
assistance (which is mentioned in the Letter of Intent), the purchase agreement becomes a full
contract for private redevelopment that handles all the real estate and financial transactions.
While the Letter of Intent states that it "shall not bind either party," I think it is too detailed and
specific at this stage. Further, it suggests a very quick timeline (entering a purchase agreement
within 10 days), and calls for the purchaser to prepare the agreement (the HRA would normally
draft the agreement). Finally, it contains some terms that I would not recommend in any event
absent unusual circumstances (such as "Seller shall deliver the site free of contamination").
If the BRA wishes to pursue this offer, I would recommend instead that the HRA enter into a
preliminary development agreement for some specified period, during which the parties will work
out the details. That would show that the HRA is serious about negotiating without prematurely
committing to specific terms. If time is a concern, at the March 3 meeting the HRA could authorize
execution of a preliminary development agreement in a form approved by the Executive Director
and legal counsel. The form agreement used by the HRA in the past would probably suffice.
If you have further questions, please let me know.
.
.
7.
Consideration to a rove the election ofHRA officers for 2004 and a rove the
a ointment of commissioners to committees.
HRA Agenda - 04/07104
A. Reference and back!!round:
OFFICERfi
In accordance with the HRA Bylaws, the chair and vice-chair shall be elected at the annual
meeting of the Board of Commissioners Irom among the Commissioners of the Authority and
shall hold olliee for one year or until their successors are elected and qualified. The Secretary-
Treasurer shall be appointed at the annual meeting of the Board of Commissioners by the
Commissioners.
At the annual meeting in 1998, the commissioners discussed available time to volunteer and
agreed to rotate the HRA ollieers among the commissioners suggesting the Vice-Chair move
up to Chair. So being, the Vice Chair for 2003 was Bill Fair, therefore, Fair's name moves up
to Chair for 2004. The next in-line for Vice Chair is Darrin Lahr.
. Frie 2001 2006
Lahr 2000 2005
Murray (Fair) 1999 2004
Andrews 1998 2003
Barger 2002 2007
FOllowing is a list of names of the previous HRA Chairs and year served:
Rick Wolfsteller serves as the Secretary-Treasurer and delegates the recording of minutes to
Angela Schumann. Koropchak is employed as the Executive Director and serves as assistant
to the Secretary~ Treasurer.
COMMITTEES
The lIRA. annually or as need be, appoints a commissioner(s) to various committees.
Current committees and appointees:
Small Industrial Group - Dan Frie
Marketing ~ Darrin Lahr/Brad Barger
.
HRA Agenda - 04/07104
H.
Alternative Action:
OFFICERS
1. ^ motion to nOlninate and elect as Chair and as
----..-----
Vice Chair of the HRA for year 2004, and approve the appointment of Rick
Wolfsteller as Secretary-Treasurer for 2004.
2. A motion to table any action.
COMMlTTEES
l. A motion to approve the appointment of the following commissioners:
Small Industrial Group
-"-~---~--'------"'"
Marketing
C. Recommendation:
~
-
No recommendation given.
D. Supportin!! Data:
None.
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8.
HRA Agenda - 04/07/04
Consideration to review the HRA Business Subsidy Criteria and the HRA Bylaws for
~ossible amendments and to call for a public hearing.
These are housekeeping items for review at the annual mecting of the HRA.
BUSINESS SUBSIDY CRITERIA
In review of the Critcria by thc Executive Director, the only recommendation is to change the
deposit amount from $5,000 to $7,500. Upon review by the commissioners; questions or
other changes may be noted. In order to amend the Business Subsidy Criteria, a public hearing
is required. The following action is recommended.
A motion to call for a public hearing date of Wednesday, May 5, 2004, 6:00 p.m. for
the purpose to amend the Business Subsidy Criteria of the Housing and
Redevelopment Authority in and for the City of Monticello.
BYLAWS
In a review of the Bylaws by the Executivc Director, there is no recommendation or need for
changes. The commissioners may note some changes.
MONTICELLO
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO, MINNESOTA
Business Subsidy Criteria
Public Hearing and Adoption the 8'h day of Scptcmber,] 999.
Public Hearing and Adoption of Amendments the 4th day of October, 2000.
1. PURPOSE
.
1:01 Thc purpose of this document is to establish the Housing and Redevelopmcnt Authority's
criteria for granting of busincss subsidies, as defined in Minncsota Statutes 116.1.993,
Subdivision 3, tor privatc development. This criteria shall be used as a guide in
processing and rcviewing applications requesting business subsidies.
] :02 The criteria set forth in this document are guidelines only. The Housing and
Redevelopment Authority reserves the right in its discretion to approve business subsides
that vary trom the criteria stated herein if the Housing and Redevelopment Authority
determines that the subsidy nevertheless serves a public purpose. The Authority will Jile
evidence of any deviation horn these criteria with the Department of Trade and I.:conomic
Devclopment in accordance with Minnesota Statues, Section 1161.994, Subd. Z.
] :03 The Housing and Redevelopment Authority may amcnd the business subsidy criteria at
any time. Amendments to these criteria are subject to public hearing requirements
pursuant to Minnesota Statutes, Sections 116.1. 993 through 1 ] 61. 994.
2. STATUTORY LIMITATIONS
2;0 I In accordance with the Business Subsidy Criteria, Business Subsidy requests must
comply with applicable State Statutes. The Housing and Redevelopment Authority
ability to grant business subsidies is governed by the limitations established in Minnesota
Statutes 116.1.993 through 116J. 994.
""
Monticello City Hall, 505 Walnut Street, Suite 1, Monticello, MN 55362-8831 . (763) 295-2711 . Fax: (763) 295-4404
Offke of Public Works, 909 Golf Course Rd., Monticello, MN 55362. (763) 295-3170. Fax; (763) 271-3272
. BRA Business Subsidy Criteria
3. PUBLIC POLICY REQUIREMENT
3:01 All business subsidies must meet a public purpose in addition to increasing the tax base.
Job retention may only be used as a public purpose in cases where job loss is imminent
and demonstrablc.
4. BUSINESS SUBSIDY APPROVAL CRITERIA
4:0] All new projects approved by the I-Iousing and Redevelopment Authority should mect the
following minimum approval criteria. However, it should not be presumed that a project
meeting these criteria will automatically be approved. Meeting these criteria creates no
contractual rights on the part of any potential developer or the Housing and
Redevelopment Authority.
4:02 The project must be in accord with the Comprehensive Plan and Zoning Ordinances, or
required changes to the plan and ordinances must be under active consideration by thc
City at; the time of approval.
.
4:03 Busincss subsidies will not be provided to projects that have the financial feasibility to
proceed without the benefit of the subsidy. In cffect, business subsidies will not be
provided solely to broaden a developer's profit margins on a project.
4:04 Prior to approval of a business subsidies financing plan and when deemed appropriate by
the I-lousing and Redevelopment Authority, the developer shall provide any required
market and financial feasibility studies, appraisals, soij boring, intormation provided to
private lenders for the project, and other information or data as requested.
4:05 A recipient of a business subsidy must make a commitment to continue operations at the
site where the subsidy is used f()r at least five years after the benefit date.
4:06 The llousing and Redevelopment Authority may determine after a publie hearing that job
creation or retention is not a goal of the subsidy. In those cases, the recipient must
instead meet at least one of the following minimum requirements (in addition to all other
criteria in this document other than those relating to jobs and minimum wages):
(1) The proposed subsidy must accomplish removal, rehabilitation or
redevelopment of "blighted areas" as defined in Minnesota Statues, Section 469.002,
Subd. I 1, or must constitute a cost of correcting conditions that allow designation of
redevelopment districts under Minnesota Statutes, Sections 469.174 to 469. j 79; or
2
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HRA Business Subsidy Criteria
(2) The proposed subsidy must rcsult in improvemcnts to public infrastructure or
public facilities, including without limitation, sewers, storm sewers, streets, parks,
recreational facilities, and other City facilities; or
(3) The proposed subsidy must remove physical impediments to development of
land, including without limitation poor soils, bedrock conditions, steep slopes, or similar
geotechnical problems.
4:07 For any business subsidy that does not meet thc requirements of Section 4:06, the
recipient must create or retain jobs as determined by the Housi ng and Redevelopment
Authority, and must meet the minimum wage thresholds described in Section 5:03 Cor D
(whether or not the source of the subsidy is tax increment financing).
5. TAX INCREMENT PROJECT EV ALVA TION CRITERIA
5:0 I The Housing and Redevelopment Authority will utilize Tax Increment Financing to
support the community's long-term economic, redevelopment, and housing goals.
.
5:02 Each Tax Increment Financing subsidy will be analyzed and evaluated by the Housing
and Redevelopment Authority. Each project shall be measured against the general
criteria in Sections 1 through 6 and the specific criteria in this Section 5 applicable to tax
increment financing business subsidies.
5:03 Following are the evaluation criteria that will be used by the Housing and Redevelopment
Authority.
A. All business subsidy requests shaIJ meet the "but for" test. The "but for" test
means that the project would not develop solcly on private investment in the
reasonable future. The developer shaJJ provide findings for the "but for" test.
B. Busincss subsidy requests should create the highest feasible number of jobs on
site from date of occupancy where deem cd appropriate.
C. For manufacturing and warehousing business subsidy requcsts, at least 90% of the
jobs created must pay a wage of the higher of$9.00 per hour, or at least 160% of
the federal minimum wage requirement fCJr individuals over thc age of 20.
Annual written reports are required until termination date. Failure to meet the job
and wage level goals require partial or full repayment of the assistance with
interest.
D.
For other business subsidy requests, jobs created must meet as a minimum the
federal minimum wage requirement. Annual written reports arc requircd until
termination date. Failure to meet the job and wage level goals require partial or
3
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.
HRA Business Subsidy Criteria
full repayment of the assistanee with interest.
E. All business suhsidy requests should create the highest possible ratio of property
taxes paid before and after redevelopment.
F. Business subsidy requests should facilitate redevelopment or elimination of
"substandard" or "blighted" areas where deemed appropriate.
G. Business suhsidy requests should facilitate the "clean-up" of environmentally
unsound property where deemed appropriate.
II. Business subsidy requests should increase moderate priced housing options for
area residents where deemed appropriate.
I. All business subsidy requests should be deemed to promote additional desired
"spin-off' development.
J.
All business suhsidy requests should demonstrate "community involvement"
including demonstrated degrees of the various factors:
a) Local residency of the company's owners and employees, or
b) Local residency of the contractors involved in the project, or
c) Membership in local business organizations, or
d) Other similar factors.
6. PROCEDURES
*
*
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*
*
Meet with appropriate Staff to discuss the scope of the project, public
participation being required, and other information as may be necessary.
*
The request shall he reviewed by Staff on a preliminary basis as to the feasibility
of the project.
*
The project concept shall be placed on the Housing and Redevelopment Authority
agenda for concept review. The applicant will make a presentation of the project.
Staff will present its findings.
If the Housing and Redevelopment Authority's concept review is positive, Staff
will provide the City Council with an informational concept review.
The applicant will execute and submit th _' 'nary Development Agreement
accompanied by a non-refundable fee f $5,000.
Building and site plans submitted to the Chief Building Official.
4
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HRA Business Subsidy Criteria
*
If Planning and Zoning Commission action is required, it will be necessary for the
applicant, at this time, to make application to the Commission.
*
Staff will authorize the following steps:
- Preparation for establishment of the Tax Increment Financc District and the Tax
Increment Financing Plan ifrequired.
- Preparation of the Private Redevelopment Contract (Subsidy Agreement) based
upon agreed terms.
*
When action is required for the Tax Incrcment Finance Plan, Private
Redevelopment Contract, or Zoning/Ordinance; the Housing and Redevelopment
Authority, Commission, and City Council shall take appropriate action such as
public hearings and consideration of approvals.
*
Building permit issued after the Tax Increment Finance District and Plan is
approved by City Council, the Private Redevelopment Contract is executed by the
developer and the Housing and Redevelopment Authority, and the Building
Permit Fees are paid.
EliRible Tax Increment Finance expenditures: Land acquisition, site improvements, public
improvements, and demolition and relocation costs.
Tax Increment F'inance time: Generally six to eight weeksfrom time (~lauthorization to beRin
drqfiinR plan and contract.
Zoning/Ordinance time: Varies per pf(~iect.
busub.crit
5
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Section 1.
Section 2.
Section 3.
.
Section 4.
Section 1.
Section 2.
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"l!!P""
AMENDED
BYLA WS OF THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO, MINNESOTA
ARTICLE I
THE AUTHORITY
Name of Authority. The name of the Authority shall be the "Housing and
Redevelopment Authority in and for the City of Monticello, Minnesota."
Seal of Authority. The seal of the Authority shall be in the form of a circle and shall
bear the name of the Authority and the year of its organization.
Office of the Authoritv: Place of Meeting. The office of the Authority shall be at such
place in the city of Monticello, Minnesota, as the Authority may from time to time
determine by resolution. Regular and special meetings of the Board of Commissioners
shall be open to the public and shall be held in Monticello City Hall at 505 Walnut
Street, Suite #1, Monticello, Minnesota; provided, however, that upon three days
written notice to the Commissioners of the place of such meeting, any regular or special
meeting may be held at such place within the city of Monticello as the notice shall
dcsignate.
Powers of the Authority. The Authority, by and in its corporate name, shall have and
exercise all powers, functions, rights, and privileges pursuant to Minnesota Statutes
469.001, et seC].
ARTICLE II
COMMISSIONERS
Authority. The business and affairs of the Authority shall be managed by or under the
authority of the Board of Commissioners, except as otherwise permitted by statute.
Number, Oualification, and Term of Office. There shall be five Commissioners
appointed by the Mayor of Monticello and approved by the City Council.
Commissioners shall be natural persons, at least 18 years of age, and must reside in the
city of Monticello. Commissioners shall serve a term of five years with one
Commissioner's term expiring each year.
DAWNIWORDlOLLlEISYLAWSHRA 4/3/02
Page 1
Section 3.
.
Section 4.
Seetion 1.
Section 2.
.
Seetion 3.
Section 4.
""
Vacancies. V acaneies on the Board of Commissioners occurring by reason of death,
resignation, removal, or disqualification shall be filled for the unexpired term by the
Mayor in aecordanee with the procedures set forth in Article II, Section 2.
Removal. For incfiieiency or neglect of duty, or miseonduct in office, a Commissioncr
may be rcmoved from office by the City Couneil in accordance with Minnesota Statute
469.010.
ARTICLE III
OFFICERS
Officers. The Otlieers of the Authority shall eonsist of a Chair, Vice~Chair, and a
Secretary~Treasurer. The Chair and Vice-Chair shall be eleeted from among the
Commissioners. A Commissioner shall not hold more than one of the above-namcd
otlices at the same time. The Secretary-Treasurer shall be appointed by the
Commissioners.
Chair. The Chair shall preside at all meetings of the Board of Commissioners if present.
Except as otherwise authorized by resolution of the Board of Commissioners, the Chair
shall sign all contraets, deeds, and other instruments made by the Authority. At each
meeting, the Chair shall submit such recommendations and information as considered
proper concerning the business, affairs, and policies of the Authority. Exeept as
otherwise provided by rcsolution ofthc Board of Commissioncrs, all such orders and
checks shall be counter-signed by the Chair.
Vice-Chair. The Vice-Chair shall pcrform the duties of the Chair in the abscnce or
incapacity of the Chair; and in case of resignation or death of the Chair, the Viee~Chair
shall perform sueh duties as are imposed on the Chair until sueh time as the Board of
Commissioncrs shall seJeet a new Chair.
If in the event a quorum is present and the Chair and Vice-Chair are absent or unable
to attend a mceting of the Board of Commissioners. The three remaining members shall
elect from among the remaining Commissioners a Chair for thc said meeting.
Secretary-Treasurer. The Seeretary-Treasurer shall perform the duties of the office of
Secretary-Treasurer. The Secretary-Treasurer may delegate the responsibility for
recording the Minutes of the Board of Commissioner meetings to the Executive
Director or to the Authority Office Secrctary as is determined appropriate by the
Secretary- Treasurer. The Secretary-Treasurer shall sign all orders and checks for the
payment of money and shall payout and disburse such moneys under the direction of
the Authority.
DAWNIWORDlOLLlEISYLAWSHRA 4/3/02
Page 2
Section 5.
.
Section 6.
Section 7.
Additional Duties. The Officers of the Authority shall perform such other duties and
functions as may from time to time be required by the Authority or the bylaws or rules
and regulations of the Authority.
Election or Appointment. The Chair and Vice-Chair shall be elected at the annual
meeting of the Board of Commissioners from among the Commissioners of the
Authority and shall hold office for one year or until their successors are elected and
qualified. The Secretary-Treasurer shall be appointed at the annual meeting of the
Board of Commissioners by the Commissioners.
Vacancies. Should the office of the Chair, Viee~Chair, or Secretary-Treasurer become
vacant, the Board of Commissioners shall elect a successor from its members at the
next regular meeting, and such election shall be for the unexpired term of said office.
ARTICLE IV
EXECUTIVE DIRECTOR
The Authority shall employ an Executive Director who shall have general supervision over the
administration of its business and at1airs, subject to the direction of the Board of Commissioners. As
assistant to the Secretary-Treasurer, the Executi ve Director shall ensure that proper records of the
Authority are maintained. The Executive Director (or designee) shal I act as Secretary of the meeting of
the Board or Commissioners and shall keep a record of the proceedings in a journal of proceedings to
be kept for such purposcs (the minutes of the proceedings are to be signed by the recorder plus the
Authority Commissioner acting as Chair at the meeting). The Executive Director shall perform all duties
incident to the Executive Director position as may he assigned by the position description as approved
hy the Board of Commissioners. The Executive Director shall keep in safe custody the seal of the
Authority and shall have the power to affix such seal to all contracts and instruments authorized to be
executed by the Authority.
.
The Executive Director shall have the care and custody of all funds of the Authority and shall deposit
the same in the namc of the Authority in sllch bank or banks as the Board of Commissioncrs may
selcct. The Executive Director shall be charged with the management of the housing projects of
Authority.
The Executive Director shall keep regular books of accounts showing receipts and expenditures and
shall rcnder to the Board of Commissioners, at each regular meeting (or more often when requested),
an account of his/her transactions and also of the financial condition of the Authority. The Executive
Director shall give such bond of the faithful performance of duties as the Board of Commissioners may
determine.
=
OAWNIWOROIOLLlEIBYLAWSHRA 4/3/02
Page 3
The Executivc Director shall be appointed by the Board of Commissioners. Any person appointed to
fill the office of Executive Director, or any vacancy therein, shall have such term as the Board of
Commissioners fixes, but no Commissioner of the Board of Commissioners shall be eligible to this
office. When the office of Executive Director becomes vaeant, the Board of Commissioners shall
appoint a successor, as af(xesaid.
.
So long as the Executive Director is an employee of and paid by the City, the Executive Director's
compensation will be determined in accordance with City compensation policies and proccdures
provided that the Board of Commissioners shall at least annually review thc pcrformance of the
Executive Director and make recommendations to the City regarding that person's compensation. If
the Executive Director is not an employee of the City but is independently retained by thc Authority, the
Board of Commissioners shall establish the compensation of the Executive Director.
ARTICLE V
ADDITIONAL PERSONNEL
The Board of Commissioners may from time to time employ such personnel as it deems nccessary to
exercise its power, duties, and functions as prescribed by the Municipal Housing and Redevclopment
Law of Minnesota applicable thereto. The selection of such personnel (including thc Executive
Director) shall be detcrmined by the Board of Commissioners subject to the laws of the State of
Minnesota. In cases where such personnel are employees of and paid by the City, such persons'
compensation will be determincd in accordance with City compensation policies and procedures,
provided that the Board of Commissioners shall at least annually review the perJemnance of the
personnel and make recommendations to the City regarding such pcrsons'
compcnsation. If any personnel are not employces of the City but arc independently retained by the
Authority, the Board of Commissioncrs shall establish the compensation of such personnel.
.
Section I.
Section 2.
-
'l!!!'"
ARTICLE VI
MEETINGS
Annual Meeting. The annual meeting of thc Board of Commissioners shall bc held on
the first Wednesday of April at 6 p.m. at the regular mecting place of the Board of
Commissioners; provided, however, that thc date/time of the annual meeting may be
postponed to a subsequent date/time upon the vote of a majority of Commissioners in
office at any time taken at any regular or specialmecting.
Regular Meetings. Monthly meetings shall be held without notice at the regular meeting
place of the Board of Commissioners on the first Wednesday of each month at 6 p.m.
unless the same shall be a legal holiday, in which event said meeting shall be held on the
next succeeding secular day. In the event the date/time/meetings place of a particular
meeting must be changed, the Chair may make such change deemcd necessary by
notifying all Commissioners by delivering (by staff) a notice to thcir home address at any
time prior to the mecting or mailing a noticc to thc business or home address at least
three (3) working days prior to the datc of such regular meeting.
DAWN/WORDlOLLlE\BYLAWSHRA 4/3102
Page 4
Section 3.
.
Special Meetings. Special meetings of the Board of Commissioners may be called by
the Chair or two membcrs of the Board of Commissioners fiJr the purpose of
transacting any business designated in the call. The ealJ (including location of meeting)
for a special mceting may be delivered at any time prior to the time of the proposed
meeting to each member of the Board of Commissioners or may be mailed to thc
busincss or home address of each member of thc Board of Commissioners at least
three (3) working days prior to the date of such special meeting. At such special
meeting, no business shall be considered other than as designated in the ca]]; but if all of
the members of the Authority are present at aspeeial meeting, any and a]] business
may be transacted at such special meeting. Notice of any special meeting shall be given
in accordance with MinnesotaStatutes, Section 471. 705, subd. 1 c, or any successor
statutc regarding notice of meetings of public bodies.
ARTICLE VII
QUORUM
The powers of the Authority shall be vestcd in the Commissioners thereof in office ifom time to time.
Three Commissioners constitute a quorum (except as noted below) for the purposc of conducting its
business and exercising its powers and for all other purposes, but a smaller number may adjourn from
time to time until a quorum is obtained. When a quorum is in attendance, action may be taken by the
Board of Commissioners upon a vote ofa majority of the Commissioners present (except as noted
below).
.
Exception: 1n regard to action on the annual Authority operating budget, or revisions thereto, there
must be at least four Commissioners present, and the majority of those present must vote in favor of
such for the matter to bc approved.
Section 1.
I.
2.
"
.J.
4.
5.
6.
7.
8.
....
ARTICLE VUI
ORDER OF BUSINESS
Order of Business. At the regular meetings of the Board of Commissioncrs, the
following shall be the Order of Business:
Roll ca]]
Reading and approval of minutes of the previous mecting
Items not contained in the agenda
New business
Bills and communications
Project update by Executive Director
Othcr Business
Adjournment
All resolutions sha]] be in writing and shall be copicd in the journal ofthc proceedings of
the Board of Commissioners.
DAWNIWORDlOLLlE\BYLAWSHRA 4/3102
Page 5
.
ARTICLE IX
MANNER OF VOTING
The voting on all questions coming before the Board of Commissioners shall be by roll call, and yeas
and nays shall be entered upon the minutes of such meeting. The Chair and all members of the Board
of Commissioners at every meeting of said Board of Commissioners shall be entitled to a vote. In the
event that any Commissioners shall have a personal interest of any kind in a mattcr then beforc thc
Board of Commissioners, the Commissioners shall disclose his/hcr interest and be disqualified from
voting upon the matter, and the Secretary shall so record in the minutes that no vote was cast by said
Commissioner.
ARTICLE X
EXECUTION OF CONTRACfS
All contracts, notcs, and other written agreements or instruments to which the Authority is a party or
signatory or by which the Authority may be bound shall bc executed by the Chair and Executive
Director. If the Executive Director is absent or otherwise unable to execute a document, the Secretary-
Treasurer may execute the document.
.
ARTICLE XI
AMENDMENTS
The bylaws of the Board of Commissioners shall be amended by Resolution only with the approval of
at least a majority orthe Commissioners in office at any time.
These bylaws werc adopted as the bylaws of the Authority by the Board of Commissioners on July 8,
1997.
Thesc bylaws wcre adopted as the bylaws of the Authority by the Board of Commissioners on
September 2, ] 998.
'fhcse bylaws werc amendcd as the bylaws of the Authority by thc Board of Commissioners on
June 7, 2000.
These bylaws were amended as the bylaws of the Authority by the Board of Commissioners on
April 3, 2002.
""""
DAWNIWORDlOLLlEIBYLAWSHRA 4/3/02
Page 6
.
.
--
HRA Agenda - 04/07/04
9.
Consideration to review and accept the Year-end financial reports for the HRA
General Fund and TIF Fund as prepared by BRA Treasurer WolfstelJer.
A. Reference and backe-round:
The 2003 HRA General Fund and TIF Fund Report will be submitted at the liRA meeting.
After review of the report, it is recommended the commissioners make a motion to accept the
2003 financial report.
.
.
-
.....
HRA Agenda - 04/07/04
10.
Consideration of a concept for recommendation to acauire a parcel for potential
redevelopment.
A. Reference and back2round:
The Office of the Community Development has prepared a Purchase Agreement for Council
action on April 12,2004. The 224 East 4 Street property is listed by Larry Carter, Platinum
Realty, Inc., for $149,900. The City's offer is $135,000. The property is currently
unoccupied.
The Planner Consultant and stafT looked at the area as a possible redevelopment area which
would include Palm Street (would be vacated) and perhaps parcels to the east. Consultant
Grittrnan suggested 8 town homes per one aere. The HRA under the leadership ofAl Larson
had identified this area for future redevelopment.
If it is the City's intent to acquire, demolish, and sell unimproved land at $2.50 per square foot
for construetion of town homes priced at a $175,000 each, the assistance level ranges from
$115,000 to $220,000 NPV. The variables are number of parcels acquired,
relocation/replacement, and demolition costs and the number of units constructed. See
attached.
The 224 East 4 Street purchase seems to make sense and cash-flows reasonably with the
establishment of a housing district. A recommendation from the HRA to the Council would give
the Council some direction. The proposed process: City purchases the parcel(s), solicits a
developer, and conveys the lot(s) to the H RA for establishment of TfF Housing District.
Developer's Cost, $2.50 per sq ft unimproved land.
What is the public purpose? Is it economical? Is the selling price doable?
B. Alternative Action:
I. The BRA recommends the City Council move forward to acquire the parcel at 224
East 4 Street t()r $135,000 future redevelopment. Appears to cashf10w with
reasonable amount of assistance,good buy-no relocation/replacement costs, and
removes substandard buildings.
2. The HRA recommends the City Council not move forward to acquire the parcel at 224
East 4 Strect. States reasons.
.
HRA Agenda - 04/07/04
3.
Table any action.
c.
Recommendation:
Based on the attached estimates and the City recovers its cost through TlF. Since the
Administrator was out-of-town, he perhaps to do more research prior to a recommendation.
The Executive Director recommends purchase and marketing the unimproved land for $2.50
per sq ft.
D. Supportin2 Data:
Site map, listing, and TIP estimates.
.
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2
..Property Full Report
Page 1 01'2
Single Family Residential
List Price: $ 149,900
List#:2204597
Status: Active
Style: (SF) One 1/2 Stories
Construction Status: Previously Owned
.
Year Built: 1111
Bedrooms: 2
Total Bath: 1
Garage: 2
Lot Size: 66x330
Acres: 0.5
Foundation Size: 995
AbvGrd Fin Sqft: 995
BelGrd Fin Sqft: 0
Total Fin Sqft: 995
List Date: 10/21/2003
Reed by MLS: 10/23/2003
Market Time: 148
Additional photos and supplements may be attached. If so,
you may access them by clicking on the above photo.
.
224 East 4th St
MONT - Monticello, Minnesota 55362
GENERAL PROPERTY INFORMATION
Directions: HWY25 to 4th St East to property on right.
Legal: Lots 5 and 6 Block G AC Riggs Addition to Lower Monticello
County: WRIG - Wright Lake/Waterfront:
School District Info: 763-271-0300, 882 - Monticello, School District #882
Complex/Developme nt/Subdivision:
Restrictions/Covenants:
Lot Description: Other
Association Fee: $ 0 Frequency: N/A
Fee Includes: N/A
Accessibility: None
Zoning: Residential-Multi-Family
Road Frontage: City
Orig List Price: $ 149,900
Map Page: 31 MLS Area #:341
Map Coord: C1 See Area:
Fire #:
TAX INFORMATION
Tax Year: 2003
Tax Amt: $ 896
Tax w/assess: $ 896
Assess Bal:$ 0
Assess Pend: Unknown
Homestead: Yes
Property 10: 155019007050
Lake Name:
Common Wall: No
Approved Financing:
REMARKS
Agent Remarks: Most of the value is in the two lots. The house was rented, might be possible for rental. As is addendum
required- zoned PZM.
Public Remarks:
STRUCTURE INFORMATION
Room I Level IDimen I Room Description I Level /Dimen IMisc
Living Rm IMAIN /16x10 I I / I Heat: Other
Dining Rm IMAIN /12x8 I I J /Fuel: Natural Gas
Family Rm I / j j / lAir Conditioning: None
Kitchen IMAIN /12x9 I I I IWater: City Water - Connected
Bedroom 1 jMAIN j12x11 I I I ISewer: City Sewer - Connected
Bedroom2 JMAIN /11x8 I I I /Garage Stalls: 2
Bedroom3 I I I J I lather Parking:
Bedroom4 I I I I I Ipool:
......
Total Baths: 1 Full: 1 3/4: 0 1/2: 0 1/4: 0
Bath Characteristics: Main Floor Full Bath
Dining Room: Informal Dining Room
Family Room:
Fireplaces: 0 Fireplace Characteristics:
Appliances: Range, Refrigerator
Basement: Partial
Exterior: Other
Fencing: None
Roof: Asphalt Shingles
Amenities - Shared:
Amenities - Unit:
Parking Characteristics: Detached Garage, Driveway _ Gravel
~
http://northstarm Is.comlSearchDetai I/Scripts/prtAgtFul/PrtAgtFul.asp ?prp=M1s&where=+... 3/18/2004
.Property Full Report
Page 2 of2
.
Shared Rooms:
Special Search:
Second Unit:
MISCELLANEOUS
Topography:
Tillable Acres:
Agricultural Water:
Pasture Acres:
Outbuildings:
Wooded Acres:
Farm Type: Soil Type: Croo Tyoe:
If Under Construction: Proj Comp Date: ILot Price: $
Low Price Range: IHigh Price Range:
Model Location:
Model Phone: lModel Hours Open:
Auction: No Auctioneer License #: 0
Cooperating Broker Comp Buyer Broker Comp: 2.5%
Sub Agent: 0% Facilitator Comp: 0%
Financial Remarks: Cash or conventional - estate sale.
Sellers Terms: Conventional, Cash
Existing Mortgage Information
Existing Financing: Free and Clear
Loan Orig Date:
Existing Mortgage Amount:
Int Rate:
Principal/lnt:
Secondary Fin?:
Auction Type: N/A
Variable Rate: No
Type: Exclusive Right To Sell
List#:2204597
Listing Agent: Larry J Carter
Listing Office: PlatinlJmRealty, Inc
Address: 224 East 4th St MONT - Monticello, Minnesota 55362
Larry Carter
Appt Phone: 763-295-6565 Office Phone: 763-295-6565
Prepared by:Larry J Carter
Information Deemed Reliable But Not
Guaranteed
@ 2001-2003 Regional MLS of Minn., Inc.
All Rights Reserved
.
..AJ..
.,...
http://northstarmls.com/SearchDetaillScriptslPrtA gtFullPrtAgtFuI .asp ?prp=MIs& where=+... 3/18/2004
.
PROPOSED REDEVELOPMENT ESTIMATES
ASSUMPTIONS:
Purchase Price
Parcel One 66 X 330 = 21,780 sq ft
Parcel Two 80 X 330 = 26,400 s4 ft
Parcel Thrce 66 X 330 = 21,780 sq tl
TOTALS 69,960 sq t1
Dcmo/Closing $10,000 per home
Relocation/Replacement (one home)
TOTAL COSTS
Less selling pricc
GAP
$135,000
$ 66,000
$150,000
$351,000
$ 20,000
$ 30,000
$391,000
$174,900 ($2.50 s4 ft)
$216,100
Sellin!! Price 2004 EMV
$ 54,450
$ 66,000
$ 54,450
$174,900
$ 86,200
$ 30,000
$ 79,700
$195,900
CONSTRUCT 8 TOWN I-IOME UNITS PER ACRE PER CONSULTANT GRITTMAN.
Example A: Utilize 69,960 sq ft and construct 12 town homes.
12 units at $175,000 = $2, I 00,000 Estimate New Market Valuc.
NTC $21,000
BTC $ 1,959
CTC $19,041
Tax Rate 1.32
Tax Increment $25,134
Less 10% $ 2,513
Bal $22,621 XI5years=$339,JI5 $169,657NPV Taxlncrement
$22,621 X 20 years = $452,420 $226,210 NPV
$22,621 X 25 years = $565,525 $282,762 NPV
.
.
.
--
Example B: Utilize 48,180 sq ft and construct 8 town homes. Parcel One and Palm Street
8 units at $175,000 = $1,400,000 Estimated New Market Value.
NTC $14,000
BTC $ 1,162
CTC $12,838
Tax Rate 1.32
Tax Increment $ I 6,946
10% $ 1,694
Bal $15,252 X 15 years = $228,780 $114,390 NPV Tax Increment
$15,242 X 20 years = $305,040 $152,520 NPV
$15,242 X 25 years = $381,300 $190,650 NPV
Parcel One
Palm Street
Demo/closing
TOTAL COSTING
SeJJing Price
GAP
$135,000
$ 66,000
$ 10,000
$211,000
$120,450 ($2.50 sq ft)
$ 89,550
Assumptions include Housing District, City reimbursed Je)r cost to acquire and paid for Palm Street.
$2.50 selling price for unimproved land. Developers would need to put in infrastructure.
.
.
.
11.
HRA Agenda - 04/07/04
Consideration to review final draft of the Purchase A2:reement for acquisition of land
for industrial development (Chadwick parcel) by Administrator Wolfsteller.
A. Reference and background:
In anticipation of the Letter of Intent and Purchase Agreement for acquisition of the Chadwick
parcel going before the City Council for approval in April and since the HRA has committed
$300,000 in funds toward the purchase of the land, the City Administrator and myself thought
best to review the final draft of the agreements with the I-IRA. However, the land will be
purchase by the City, as the HRA can not purchase land outside the city limits.
Prior to the proposed closing date of June 2004, the HRA will be asked to approve the
$300,000 expenditure.
The Small Industrial Group and staff have completed their homework, research, and lobbying
and now its time for the Council to take action. Wolfsteller will revicw the agreemcnts with the
HRA. Commissioner Frie has been an asset to the Small Industrial Group.
.
.
.
Kennedy & Graven, Chartered
200 South Sixth Street
Suite 470
Minneapolis, MN 55402
(612) 337-9300
Tax ID No. 41-1225694
February 18, 2004
Statement No. 60300
City of Monticello
Accounts Payable
505 Walnut Street, Suite 1
Monticello, MN 55362
Through January 31, 2004 ~
MN190-00084 DTED Loan - Twin City Die Casting - SR.JL
29.00
MN190-00111 Landmark Square Phase II (Masters Fifth Ave. Inc.)
~~ ~(L
549.00
Total Current Billing:
578.00
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.
s;gnat~JJ
m~;~liL~J~j\[~T0
:q : : J
I:, L i. ~ FE B 2 6 2004 n
, :i t
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lw,~~::;"L!.-{IT--'-~:~i:;,':~;7~{::ft. L 0 f
.. '='"'''~''',''.' ..,., ...._,...~...,.""'...JJ
OK TO PAY? 6\\,c
Code:
Initial {;ld- 3. \ ~. 9 '-{
.
.
.
Kennedy & Graven, Chartered
200 South Sixth Street
Suite 470
Minneapolis, MN 55402
(612) 337-9300
41-1225694
February 18, 2004
Invoice # 60300
City of Monticello
Accounts Payable
505 Walnut Street, Suite 1
Monticello, MN 55362
'\V-~~
\ 0--"''v /
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----------~~~
-----_..........-
~...----
MN190-00084 (DTED Loan - Twin City Die Casting
Through January 31, 2004
For All Legal Services As Follows:
1/5/2004 EMT Email exchange with O. Koropchak.
Total Services:
Hours
0.20
$
Total Services and Disbursements: $
Amount
29.00
29.00
29.00
.
.
.
City of Monticello
January 31, 2004
MN190-00111
Page: 2
Kennedy & Graven, Chartered
200 South Sixth Street
Suite 470
Minneapolis, MN 55402
Landmark Square Phase II (Masters Fifth Ave. Inc.)
Through January 31, 2004
For All Legal Services As Follows:
1/7/2004 SJB Phone call with 0 Koropchak re: Contract
1/13/2004
1/15/2004
1/21/2004
1/30/2004
r} \ 0 -
SJB Phone call with 0 Koropchak re: deal terms, TIF
deficiency; work on Contract
SJB Phone call with 0 Koropchak re: Contract
SJB Phone call with B Johnson re deficiency agreement terms,
message to Koropchak
SJS Phone call with Koropchak; revise contract
Total Services:
V? c, '-\ 0
~ COCb '
l-\~
Hours Amount
0.50 90.00
1.00 180.00
0.50 90.00
0.30 54.00
0.75 135.00
$ 549.00
Total Services and Disbursements: $
549.00
.
.
.
HRA Agenda - 04/07/04
13.
Executive Director's Reoort.
a) Job and Wage Level Survey - Forty-two businesses were mailed ajob and wage level form
to complete and return by March I, 2004. Eighteen were returned. A second mailing was sent
March 24 with a deadline date of April 15. The number of jobs will be used to update the
Monticello Community Profile. The wage levels will be calculated to determine dollars
available for spending in our community, one economic benefit resulting from the successful
recruitment of industrial and commercial businesses.
b) Minnesota Business Assistance Forms - Any business who receives assistance from the City,
HRA, or EDA must account for jobs committed within the Loan Agreement or Private
Development Contract. This a part of thc Minnesota Business Subsidy Law. The reports arc
due each April 1. Job creation is reported until neither the jobs are created or until two years
of benefit date whichever is first. 'the EDA in April will review one sma11 loan for non-
compliance of job creation. Completed forms mailed March 22 to MN DEED. The year-cnd
progress repoli fi)f the State/City Grant then loan to UMC was also completed and mailed..
c) HRA Annual meeting in April - Landmark Square II Tlr assistance and Block 52
redevelopment, proposed Walgreens.
I've been invited to the Waverly Planning and Zoning and EDA meeting on April 14 to talk
about the practical application ofTIF. I'll join Dan Greensweig, State Auditor's Office,
previous HRA attorney.
2003 TIF Report Information and rorms arrived. Must be completed and submitted to State
Auditor's Office by August 1. 2004.
d) EDA Annual meeting in April - Block 35 Improvements.
e) Marketing Committee - Chamber Golf Outing is May 20 - gratis invitations will be mailed to
developers, builders, etc. Survey to local malluf~lcturers to list preferred five industrial
magazines read is ready to mail right after Council's authorization to purchase land.
1) Leads -
March 26 - Meeting with a manufacturing business who is interested in the EDA loan
and Monticello location. (Acquisition of Remmele building).
March 17 - Visited a Monticello manufacturer looking to expand in fall 2004.
March 24 - Metal fabricator looking to relocate from metro. Wants to lease 10,000
sq n. Currently 6 jobs. Suggested: Standard Iron and Kaltac. EDA loan f(Jr M&E.
March 18 - H- Window building had an offer which was turned down. Knut Flakk,
Norway, stopped by my office to visit.
March 25 - Toured Monticello with United Properties. Looking for large track ofland
for future Business Park development. Some interest in shared marketing with City on
Chadwick property. He suggested Chelsea Road not run parallel to Interstate,
particularly, if additional car, boat, etc dealers are allowed. He believes this will
devalue city property and not suitable for Business Park development. Looked at Gold
.
H RA Agenda - 04/07/04
Nugget, Pauman, and Osowski.
17,000 sq ft for Industrial cleaner of cloths - County lead.
Other commercial leads
g) Development offndustrial Parks - Jeffrey Peterson, First American Exchange; Chuck Van
Heel, Allied Properties; and Steve Schwanke, RLK. April 16, 11:30, Russell's, St. Michael,
$30.
h) The proposed date of the Industrial Banquet is Tuesday, June 22, 2004.
i) Attached is the job and wage report for the companies with current TIF or loan assistance.
For your information, Front Porch project - By end of December 2003 shall have 12 units
completed - 11 completed. By end of December 2004 - Total 18 units shall be completed.
Three currently under construetion. An additional eight units completed by Dec 2007 for total
of26 units. Although all the units of IIans Hagen's are completed or fully assessment, I'll try to
find out the number sold.
j) Letter of Request for HRA audited or unaudited finaneial statements.
.
.
2
03/16/04 TOE 15:45 FAX 7632715249
illIC. INC.
141 UU:i!:
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DEVELOPMENT SERVICES
Economic Development Director
MONTICELLO
Phone;
Fa\:;
EmaiJ;
(763) 271.3208
(763) 295.4404
011 ic. koronchakrci':ci. nmn ticdlo.nlll .lIS
CITY OF MONTICELLO, MINNESOTA
II
JOB AND WAGE LEVEL - EXISTING JOBS
=:J]
Please indicate number of current employees at each level and indicate the corresponding benefit level.
Number of./obs Hourly Wa!!e Hourlv Value
Level of Voluntary
Benefits (S)
Full-time Part.,.time (Exe!. benetits)
. ~ ..e- Less than $7.00 ^' }A
~~ \ $7.0010 $7.99 $0. IS'
--~.-.-.
~ \ $8.00 to $9.99 .. O. qo
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---1_ ff $10.00 to $11.99 -;Z. $\
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S :2- $12.00 to $13.99 "A' I:!>
J'2. $- $14.00 to $15.99 ~3' IS'
r3 ~ $16.00 to $17.99 _,.3.$7
:J.3 .% I i ~ I &.00 to $19.99 ~ 3' <fer
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--
~8 >>- 522.00 and higher ~ S'. .;?S"
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Company Name U IV1 c.... ;:J:'", " .
. JOBSW AGE.20U4
Monticello City Hall, 505 Walnut StTeet, Suite 1, Monticello, MN 55362-8831 · (763) 295~27lJ . Fax: (763) 295.4404
Office of Public Works. 909 Go1fCouTse Rd., Monticello. MN 55362. (763) 295-3170. Fax.: (763) 271-3272
~
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_ DEVELOPMENT SERVICES Phone: (763) 271-3208
'i2 U ~ ~ ~ Economic Development Director Fax: (763) 295-4404
\-$'.-r '1:J l) _ 'C):?7 Email: ollie.koronchakril:cLmonticello,nm,lIs
S - CITY OF MONTICELLO, MINNESOTA
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MONTICELW
II
JOB AND WAGE LEVEL - EXISTING JOBS
II
Please indicate number of current employees at each level and indicate the corresponding benefit level.
Number of Jobs
Hourly Wage
Level
Hourly Value
of Voluntary
Benefits (S)
Full-time Part-time
.-~- 0
-~~~
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0 0
In 0
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-' 0
j 0
<l 0
3'1 ?-
(Excl. benefits)
Less than $7.00
$7.00 to $7.99
$8.00 to $9.99
$1 0.00 to $11 .99
J IS, 6""3
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'4 .J /. .;;l {) f'
$12.00to$13.99
$14.00to$15.99
$16.00to$17.99
$18.00 to $19.99
$20.00 to $21.99
$22.00 and higher
Company Name 7Zu / ;,
e.lOBSWAGE.2004
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Monticello City Hall, 505 Walnut Street, Suite 1. Monticello, MN 55362-8831 . (763) 295-2711 . Fax: (763) 295-4404
Office of Public Works, 909 Golf Course Rd., Monticello, MN 55362. (763) 295-3170. Fax; (763) 271-3272
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DEVELOPMENT SERVICES
Phone:
Fax:
Email:
(763) 271-3208
(763) 295-4404
ollie. knwnchukru:ci .l1lnnticc 1\0_ om. LIS
Economic Development Director
MONTICELLO
CITY OF MONTICELLO, MINNESOTA
II
JOB AND WAGE LEVEL - EXISTING JOBS
II
Please indicate number of current employees at each level and indicate the corresponding benefit level.
Number of Jobs
Hourly Walle
Level
Hourly Value
of Voluntary
Benefits (S)
Full-time
Part-time
(Excl. benefits)
.
___L~_
Less than $7.00
-~-
$7.00 to $7.99
$8.00 to $9.99
$22.00 and higher
~2-
\. 67.:
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~lb
3.3S
lt5\
4,105
l
~~
1
\'2-
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1
5\0
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$10.00 to $11.99
$ 12.00 to $13.99
$14.00 to $15.99
\
$16.00to$17.99
$18.00to$19.99
$20.00 to $21.99
Company Name~.
. JOBSW MiE.2004
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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. (763) 295-3170. Fax: (763) 271-3272
',}
DEVELOPMENT SERVICES
Phone: (763) 271-3208
Fax: (763) 295-4404
Email: ollie.koronchakrtlci.mnnticello.mn.L1s
Economic Development Director
MONTICELLO
CITY OF MONTICELLO, MINNESOTA
II
JOB AND WAGE LEVEL - EXISTING JOBS
II
Please indicate number of current employees at eaeh level and jndieate lhe corresponding benefit level.
Hourly Wal;!:e Hourlv Value
Level of Voluntary
Benefits (S)
(Exc.1. bene1~ls)
Less than $7.00 ~~_._-~-
$7.00 to $7.99 -_.,,-,.~--
$8,0010 $9.99
$10.00 to $11.99
$12.00 to $13.99
$14.00 to $15.99 --
$16.00 to$17.99
$18,00 to $19.99
$20.00 to $21.99 1-_
$22.00 and higher ~gl
~-
Number of Jobs
Full-time
Part-lime
.
x
.
X
Company Name JlJ/o//fl 0)
. .I0BSWAGE.2004
Monticello City Hall, 505 Walnut Street, Suite I, Monticello, MN 55362-8831. (763) 295-271 I · Fax: (763) 295~4404
Office of Public Works, 909 Golf Course Rd., Monticello, MN 55362. (763) 295-3170. Fax: (763) 271-3272
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STATE OF MINNESOTA
OFFICE OF THE STATE AUDITOR
PATRICIA ANDERSON
STATE AUDITOR
SUITE 500
525 PARK STREET
SAINT PAUL, MN 55103-2139
(651) 296-2551 (Voice)
(651) 296-4755 (Fax)
state.auditor@state.mn.us (E-Mail)
I-ROO-627-:1529 (Relay Service)
March 03, 2004
Mr. Ollie Koropchak
City of Monticello HRA
Suite 1
505 \Valnut S1.
Monticello, MN 55362
Dear Mr. Koropehak:
-
.
We are in the process of updating our records for housing and redevelopment authorities.
Therefore, I am requesting a eopy of the housing and redevelopment authority's audited fmancial
statements. If an audit is not required, send a eopy of the unaudited financial statements. The audit
report or financial statements should be for the year ended December 31, 2003 or corresponding
fisea] year. In addition, housing and redevelopment authorities should submit a copy of their financial
statements annually to the Office of the State Auditor.
Please submit the fmaneial statements, to the Office of the State Auditor, Suite 500, 525 Park
Street, S1. Paul, Minnesota 55103. This will bring our records up to date and confirm that your
housing and redevelopment authority has complied with the request of the Office of the State
Auditor.
If you have any questions, please contact me at (651) 297-3682 or email me at
Dave.Kazeck@state.mn.us.
Sincerely,
~L~
David R. Kazeck, Supervisor
Government Infonnation Division
.
~ Recycled paper with a minimum of
\':J<Y' 15% post.consumer waste
An Equal Opportunity Employer