HRA Agenda 05-05-2004
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AGENDA
MONTICELLO HOlJSING AND REDEVELOPMENT AlJTHORITY
Wednesday, May 5, 2004 - 6:00 p.m.
505 Walnut Street - Bridge Room
Commissioners:
Chair Bill Fair, Vice Chair Darrin Lahr, Dan Frie, Brad Barger, and Steve
Andrews.
Council Liaison:
Roger Carlson.
Staff: Rick Wolfstellcr, Ollie Koropchak, and Angela Schumann.
Guests:
Brad Johnson, Lotus Realty Services and Barry Fluth, Master's Fifth Avenue
Bob Cunningham, Told Development Company
Call to Order.
Consideration to approve the April 6, 2004 HRA minutes.
Consideration of adding or removing items from the agenda.
Consent Agenda.
Continued - Consideration to review final draft and to authorize entering into the Contract for
Private Redevelopment between Masters Fifth Avenue and the HRA for Landmark Square
Phase II.
Continued - Consideration to hear an update on redevelopment of Block 52.
Public Hearing - Consideration to approve amending the BRA Business Subsidy Criteria.
Consideration to authorize payment of lIRA bills.
Consideration of Executive Director's Report.
Committee Reports.
Othcr Business.
Adjournment.
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MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, April 7th, 2004 - 6:00 p.m.
505 Walnut Street - Bridge Room
Comm issioners:
Chair Stcve Andrcws, Brad Barger, Dan Frie, Darrin Lahr, and Council Liaison
Roger Carlson
Vice Chair Bill Fair
Rick Wolfsteller, Ollie Koropchak, and Angela Schumann
Absent:
Staff:
1. Call to Order.
Chair Andrcws called the meeting to order at 6:00 p.m. and declarcd a quorum, noting the
absence of Commissioner Fair.
2.
Consideration to approve the March 3rd, 2004 HRA minutes.
A MOTION WAS MADE BY BARGER TO APPROVE THE MINUTES OF TilE
MARCH 3RD, 2004 HRA MEETING. ANDREWS SECONDED THE MOTION.
MOTION CARRIED UNANIMOUSLY.
3. Consideration of adding or removing: items from the agenda.
Koropchak requested the removal of item 6 and 6a, regarding Block 52. Representatives
from that company had indicated to Koropchak that they had no new report.
4. Conscnt Agenda.
None
5. Continued ~ Consideration of a requcst l()r additional TIF assistance and to authorizc the
HRA Attorney to amend, accordingly, the Contract for Private Redevelopment bctween
Masters Fifth A venue and the HRA for Landmark Square Phase II.
Koropchak verified that the II RA had moved to amend the contract to alter the approved
construction commencemcnt date.
Koropchak stated that she and Wolfsteller had met with the developers to addrcss the gap
between cost of dcvelopmcnt and current funding Icvels, as previously discLlssed.
Koropchak indicated that Johnson had presentcd a pro forma at that timc. Koropchak
reported that based on the number of units proposed, the developcr could save $35,700 in
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HRA Minutes 04107/04
SAC and WAC charges. In lowering the interest rate on the bonds from 6.5 to 5.5
percent, the devclopers eould save approximately $16,000.
Johnson spoke on behalf of the devclopers, indicating that the pro forma provided
illustrates the current shortage, even with HRA assistance. Johnson re-stated their goal of
achieving a $30,000 lot cost. Johnson stated that the gap currently stands at $125,000.
With the eligible costs as listcd, Johnson indicated that should the lIRA provide more
assistance, they would have adequate costs. Johnson reported that Fluth has already
personally bought one house. Johnson also stated that they could bcgin in June as
required.
Johnson askcd the lIRA if they still had the desire to make the project work. He
indieated that the unspent bond funds would be lost by June 30th without a project.
Koropchak clarified that they eould retire the bond at that point, or form another district.
Johnson commented that thus far, they have been good stewards of development within
the community, citing the Locust Street and Cub projects as examples.
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Wolfsteller indicated that it is better to use non-general fund dollars toward the project.
TIF district collects all taxes.
Johnson inquired of Dan Frie what average townhome lot eost is in Monticello. Frie
estimated $30,000. Johnson reported that thcy were aiming for that average range.
Andrews commented that he had review October's HRA discussion on this matter and
noted that a similar conversation had occurred. At that time, the HRA was comfortable
with the amount of assistance offered, based on what the project would generate. He
suggested that the HRA consider the value of the redevelopment in the area and the value
in terms of the fact that this development would remove 3 homes and create 11.
Koropchak reported that she had spoken with RutT again, who recommended using the
simple analysis provided in Koropchak's staff report. If the value of the raw land (no
improvements) had a value of $20,000 per lot and the developers are building I ] units at
$220,000, less in terms of their costs for demo, etc., the gap is $259,000. This analysis is
variable based on the value of the raw land. Korpchak stated that she is somewhat
concerned about the "but f()f" test.
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Koropchak stated that she and Wolfsteller had discussed providing $314,000 in assistanee
as requested and had some issues with justifying that to the publie. Johnson stated that if
they don't approach the $100,000 mark, they cannot work the project, because they can't
do it at a loss.
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lIRA Minutes 04/07/04
Frie stated that he believed the dcveloper's numbers arc accurate, it's just a matter of
whether the HRA wants to spend the money to close the gap. Frie commented that it may
be possible to address pay back if the actual amounts are less. In some contracts, the
BRA has approved language that at the end of the project, actuals are provided and if
there is a difference, the developer can pay liRA back. Johnson stated that he will be
putting up a letter of credit for every dollar the HRA spends.
Barger asked Carlson if Council would approve WAC and SAC reductions. Carlson
stated that both he and the Mayor would approve the reductions. Wolfsteller
recommended that HRA provide the assistance versus the Council waiving the fees. In
such case, the lIRA would pay SAC and WAC, then the TI f would pay the H RA back.
Johnson stated that they are willing to do "look-backs" to reconcile actual costs.
Koropchak asked for clarifications on the number of units and duplexes as rcflecting on
the pro forma. Johnson said that the $] 60,000 shown is for one unit or $320,000 fCJr
entire building.
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Koropchak also reportcd that she did a quick analysis on the project. Ifthis project was in
a ncw TIF district, with current tax rate, it would take 16 years to pay back the requested
amount of assistance. The HRA would actually havc $197,000. At thc higher amount, it
would take 25 years and would be $265,000, which is less than currcnt HRA ol1er of
$282,500.
Barger asked about the possibility of the assessor assessing the project at that value.
Koropchak noted that concern, cspecially in tcrms of changing the construction date.
Koropchak had spoken with the asscssor, who was okay with the assessment agrcemcnt
reflecting the January I S\ 2005, date based on the $1.8 million GMV with a completion
datc of April, 2007, subjcct to review of building plans.
A MOTION WAS MADE BY FRIE TO PROVIDE ADDITIONAL TIf ASSITANCE
OF $45,000, BASED ON INCREASED SELLING PRICES IN 2 YEARS AND THE
DEVELOPER REDUCING THE PER LOT COST VALUE BY $5,000. MOTION
SECONDED BY LAHR.
Johnson sought clarification on whcther the BRA had agreed to an intercst rate rcduction.
Koropehak stated that it could be looked at as an option, but had not been decided upon.
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Barger asked Johnson if the devclopcr would agree to pay back to thc I-:lRA any profits on
developmcnt over YYo. Johnson indicated that they could agrce to a 50/50 split on any
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HRA Minutes 04/07/04
amount over 5%.
Lahr asked Koropchak to clarify how much TIF assistance was previously approved.
Koropchak stated that amount was $282,500.
Johnson stated that the HRA had just motioned for an additional $45,000, he is asking for
$70,000, or $125,000 minus the $5000 per lot that was motioned). Johnson stated that
they would be willing to share pro formas. Koropchak stated that in addition to the pro
formas, the HRA would also need evidence of all of those costs.
Barger requested that any amendment to the motion include the 50/50 profit split.
FRIE AMENDED THE FIRST MOTION TO PROVIDE A TUrAL OF $352,500 IN TIF
ASSISTANCE AND A "LOOK BACK" CALUSE CONSISTING OF A 50/50 SPLIT
BETWEEN THE liRA AND DEVELOPER ON ANY PROCEEDS ABOVE THE 5%
PROfIT ON THE SALE OF THE HOMES. MOTION SECONDED BY ANDREWS.
MOTION CARRIED UNANIMOUSLY.
Koropehak asked Frie why he supported the additional assistance. frie indicated that
considerable time and effort had been invested and that any redevelopment in this area
would be expensive.
Koropchak indicated that the developer would need to provide updated information on
eligible costs and reminded Johnson that the contract requires platting by June 1 st.
Johnson indicated that they cannot plat by June 1. Koropchak asked the I IRA if it wanted
to give out the money without the protection of approved plans and plat. Frie stated that
the developers would have to seek to amend the contract in terms of platting dates at the
next meeting.
6. Continued - Consideration to hear an update on redevelopment of Block 52.
Removed.
7. Consideration to approve the election of I IRA officers for 2004 and approve the
appointment of Commissioners to committees.
MOTION BY ANDREWS TO NOMINATE AND ELECT BILL FAIR AS CHAIR,
DARRIN LAHR AS VICE-CIIAIR AND RICK WOLFSTELLER AS TREASURER.
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HRA Minutcs 04/07/04
MOTION SECONDED BY BARGER. MOTION CARRIED UNANIMOUSLY.
MOTION BY ANDREWS TO APPOINT DAN FRIE TO THE SMALL INDUSTIRAL
COMMITTEE AND BRAD BARGER AND DARREN LAHR TO THE MARKETING
COMMITTEE.
MOTION SECONDED BY FRIE. MOTION CARRIED UNANIMOUSLY.
8. Consideration to review the I-IRA Business Subsidy Critcria and thc liRA Bylaws fi)[
possible amendments and to call for a public hearing.
Koropchak noted that in order to be consistent with a motion passed at a previous
meeting of the HRA, the Business Subsidy non-refundable fee needs to be changed lfom
$5000 to $7500. This action requires a public hearing.
MOTION BY FRIE TO CALL FOR A PUBLIC HEARING ON MAY 5, 2004 AT 6:00
PM FOR TilE PURPOSE OF AMENDING THE BUSINEES SUBSIDY CRITERIA OF
'fIlE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR TIlE CITY
OF MONTICELLO.
MOTION SECONDED BY BARGER. MOTION CARRIED UNANIMOUSL Y.
9. Consideration to review and accept the year-end financial rcports for the lIRA General
Fund and TIF Fund as prepared by Treasurer Wolfstellcr.
Korpochak reviewed the financial report as supplied to the liRA. Koropchak
recommended that TIF District 2 needs to be adjusted as it continues to run at a deficit
because of changes in classification.
Koropchak state that the lIRA's bottom line in the General Fund is $633,000. Koropchak
reminded the liRA that if Council approves buying industrial land, the HRA has
committed $300,000~ That contract requires closing by June I st. The HRA will need to
make motion to approve expcnditure. Koropchak has spoken with the attorney and Mark
Ru1T about keeping some of County fund pay-back to put into industrial park. Koropchak
noted that when the County gets paid back, the City also gets a check back for their
portion. Wo)fsteller has agreed to put that funding toward the industria) park.
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HRA Minutcs 04/07/04
MOTION BY LAHR TO ACKNOWLEDGE ACCEPTANCE Of 2003 FINANCIAL
REPORT.
MOTION SECONDED BY FRIE. MOTION CARRIED UNANIMOUSLY.
10. Consideration of a concept for recommendation to acquire a parcel for potential
redevelopment.
Koropchack provided the staff report, indicating that the idea fiJr the parcel purchase had
originated with the Community Development department. The area around East 4th Street
had bccn discussed as an area for potential redcvelopment. As such, when 224 E. 4th St.
came on thc market, a purchase agreement in the amount of $135,000 was drafted. It will
be presented to the Council as a City purchase, not HRA. Koropchak is looking for
recommendation from lIRA to support or reject support of that agenda item. An
easement for vacation of Palm Street adjacent to the property may make it a reasonablc
purchasc for redevelopment. The City planner, Steve Grittman, has indicatcd the
possibility oflocating up to 8 townhomes pcr aere. Ilowever, if the City is looking to do
a broader redevelopment project in that area, the costs become more prohibitive.
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Barger asked if this is on the blighted list. Frie and Koropchak stated that thcy believed it
is on the list.
Koropchak stated that it would not qualify as a redevelopment project, but could have to
be a housing district. This property would not meet the 15% improvement requirement
duc to the unimproved lot behind the lot thc house sits on (onc parcel).
Koropchak is looking f<Jr direction from the HRA on whethcr they would like to buy the
parcel, or leave the parcel fix the Council to purchase. She also wanted the HRA to
address what they think about potential purchase agreement came for lots 3 and 4. Shc
indicated that every house purchase will increase the developmcnt cost/assistance gap.
Koropchak stated that the price f()r the propcrty is rcasonable, however, it would be
worthwhile to find a developer to do the project. Generally, the HRA' s position has been
to let developcr do negotiation on other lots.
MOTION BY FRIE TO RECOMMEND THAT COUNCIl , ONLY PROCEED WITII
AUTI-IORIZA TION OF TIlE PURCIIASE AGREEMENT IF TIlE FOLLOWING
CONDITIONS ARE MET:
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liRA Minutes 04/07/04
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THE PURCHASE IS A REASONABLE ACQUISITION
THE COUNCIL UNDERSTANDS THAT A SUBSTANTIAL AMOUNT OF nF
ASSISTANCE WILL BE NEEDED TO DEVELOP THE PROPERTY
DEMOLITION OF ONE BLIGHTED PROPERTY WILL BE COMPLETED
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IT IS THE HRA'S PREFERENCE THAT IN THE FUTURE, SUCH PROPOSALS ARE
PRESENTED TO THE HRA BY DEVELOPERS SEEKING TO REDEVELOP.
MOTION SECONDED BY LAHR. MOTION CARRIED UNANIMOUSLY.
11.
Consideration to review final draft of the Purchase Agreement for acquisition ofland for
industrial development (Chadwick parcel).
Koropchak indicated that the purchase agreement contained blanks, which should have
been filled in by the City rather than by Chadwick. Thy City Attorney will be completing
the contract after getting the numhers from the City Engineer. Koropchak stated that she
is still hoping that the Small Group can look at the contract before Council on the lih. If
Council agrees with terms as filled in, it is up to Chadwick to approve. Chadwick would
like to be able to sell Moon Motors as a priority.
No action required.
12. Consideration to authorize payment of HRA bills.
A MOTION WAS MADE BY LAHR TO AUTHORIZE PA YMENT OF THE HRA
BILLS. I
MOTION SECONDED BY FRIE. MOTION CARRIED UNANIMOUSL Y.
13. Consideration of Executive Director's Report.
Koropchak reported that the Remmele building had been sold, although the buyer's name
is still confidential information as the shareholders of the company must be notificd.. The
new company will add 46 jobs in manufacturing sector. Koropehak indicatcd that she is
supportive of the use. Thc EDA will consider a loan at a special meeting.
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HRA Minutes 04107/04
14.
Committee Reports
None.
15. Other Business
A. May 5, 2004 next HRA meeting (proposed date to adopt resolution f()r refinancing
TIF district No. 1-22 bonds).
16. Adjournment.
A MOTION WAS MADE BY BARGER TO ADJOURN THE MEETING AT 8: 15 P.M.
MOTION SECONDED BY LAHR. MOTION CARRIED UNANIMOUSLY.
liRA Chair
Recorder
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HRA Agenda - 05/05/04
5.
Continued - Consideration to review the final draft and to authorize entering into the
Contract for Private Redevelopment between Master's Fifth Avenue and the HRA for
Landmark Square Phase II.
A. Reference and background:
At the HRA meeting in April, thc commissioners approved an additional $70,000 ofTIF
assistance from the TIl" District No. 1-22 Funds "Second Disbursement" and a Look Back
Clause of 50/50 split over dcvelopcr return of greatcr than 5%. This brings thc total amount of
TIF assistancc to $352,500 NPV. Attorney Bubul has been satisfied that the acquisition costs
of thc three propertics are eligible expenditurcs. Sincc the Moore house was purchased prior
to the Preliminary Dcvelopmcnt Agrecment dated August 28, 2003, Attorney Bubul qucstioned
its eligibility. Howcver, after review of the lIRA minutes from January 2003 to date, Bubul is
comfortable with this as an eligible cost. Fluth is still working on the Purchase Agreemcnts f()r
the other two houscs which need to be closed and paid for in order f()r the HRA to disburse or
reimbursc Fluth prior to June 30, 2004.
The Contract also statcs that the Authority having approved construction plans f()r the minimum
improvements and the City having approved any plat and planned unit development nccessary
to construct the minimum improvemcnts prior to disbursement by the HRA. Application
deadline date f()r the Planning Commission meeting of June 1, is May 10. This will assume the
plat and development stage PUD are pcrfect, in order for the final plat to bc approved by the
Council on June 14 or 28, 2004.
The attachcd exccrpts show the rcvisions to the Contract duc to the action takcn by the HRA in
April. Please revicw prior to furthcr action. I have not receivcd the rcquested, reviscd
proforma: one with TIF and one without TlF from the developer and a lctter from the lender to
satisfy the "but tor" test.
B. Alternative Action:
1. A motion to authorize entering into the Contract for Private Redevelopment between
Master's Fifth Avenuc and the HRA for Landmark Square Phase II as outlined in draft
five.
2. A motion to deny authorization to enter into a Contract for Private Redevelopment
between Mastcr's Fifth A venue and the H RA lor Landmark Square Phase II as
outlined in draft five.
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HRA Agenda - 05/05/04
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A motion to table any action.
C. Recommendation:
As the HRA previously determined a public purpose exist, agreed to increase the amount of
TIF assistance and understands the terms and conditions of the Contract, the City
Administrator and Executivc Director recommcnd Alternative No.1.
D. Supporting Data:
Excerpts from Draft Five of the Contract.
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FourthFifth Draft
FebFuaF)' 26,ADril 30. 2004
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CONTRACT
FOR
PRIVATE DEVELOPMENT
By and Between
MASTERS FIFTH A VENUE, INC.
and
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR
THE CITY OF MONTICELLO
Dated as of:
,2004
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This document was drafted by:
KENNEDY & GRA YEN, Chartered
470 Pillsbury Center
200 South Sixth Street
Minneapolis, Minnesota 55402
Telephone: (612) 337-9300
FMT-2406JOv5
MN190-lli
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ARTICLE III
Acquisition of Property; Financial Assistance
Seetion 3.1. Status of the Development Property. As of the date of this Agreement, the
Developer warrants and renrescnts that it has either purchased--ttf! entered into a-purchase
agreementa~recments. or initiated nel!:otiations with a-third pat'tyDarties for acouisition of all
of the parcels eomprising the Development Property. all in reliance on the cxoectation of
enterinl!: into this Al!:reement. The Authority shall have no obligation to purchase the
Development Property or any portion thereof. The Developer shall, at its eost, obtain approval
by the City of any plat and planned unit developmcnt requircd by the City in conneetion with
development of thc Development Property in accordance with this Agrccment.
Section 3.2. Soil Conditions. (a) The Devcloper acknowledges that the Authority makes
no representations or warranties as to the condition of the soils on the Development Property or
its fitncss for construction of the Minimum Improvemcnts or any other purpose for whieh the
Developer may make usc of such property. The Devcloper furthcr agrees that it will protect,
indemnify, defend, and hold harmless the Authority, thc City, and their governing body
members, offieers, agcnts, and cmployccs, from any e1aims or aetions arising out of: (i) the
presence, if any, of hazardous wastcs or pollutants on the Development Property, including but
not limited to toxic or hazardous substances or wastes, pollutants, or eontaminants (including,
without limitation, asbestos, urea formaldehydc, the group of organic compounds known as
polychlorinated biphenyls, petroleum products including gasolinc, fuel oil, crude oil and various
eonstituents of sueh produets, and any hazardous substanees as dcfined in the Comprehensive
Environmental Response, Compensation and Liability Act of 1980 ("CERCLA") 42 U.S.c. SS
9601-9657, as amended); (ii) the status of the Development Property as a treatment, storage, or
disposal facility within the meaning oC or other status of the Development Property within the
ambit of the Resource Conservation and Recovery Act of 1976 ("RCRA"), 42 U.s.c. S 6901 et
seq., or any similar federal or state law or regulation, or local ordinancc; (iii) a rclease or
threatcncd release of toxic or hazardous wastcs or substances, pollutants or contaminants, from
the Devclopmcnt Property within thc meaning of, or othcr status of thc Development Property
within the ambit of CERCLA, or any similar federal or statc law or local ordinance, (iv) thc
diseharge of pollutants or effluents into any water souree or system or the dredging or filling of
any waters or the discharge into the air of any emissions, that, as the ease may bc, would rcquire
a permit under the Federal Water Pollution Control Act, 33 U.S.C. 9 1251 et seq., or the Clean
Air Act, 42 U.S.c. S 740 I et seq., or any similar federal or state law or local ordinanee; (v) any
other claim or cause of action under RCRA, CERCLA, or any other fedcral, state, or local
environmental statute, regulation, ordinancc, or other environmental regulatory requirement,
including but not limitcd to the Minnesota Environmental Response and Liability Act, Minnesota
Statutes, Chapter 115B ("MERLA") and the Minnesota Petroleum and Release Cleanup Act,
Minnesota Statutes, Chapter 115C.
(b) The Developer's obligations under this Section 3.2 shall survive termination of
this Agreement t()r any reason, including but not limited to by rcason of any failure by either
party to satisfy the conditions preecdent set forth in Section 3.8.
LM'I'-240630v5
MN190-111
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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-or-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 from 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 arc 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.
~ "'_ "J.- · SC9-o Section 3.4. Land Acquisition Costs. In order to make development of the Minimum
I?:> --;7 ..-Impr~ents economIcally feasIble, the AuthOrIty wIll reImburse the Developer for up to
. C $282,5gQ...Qf the Developer's cost of acquisition for any portIOn 01 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 parcels of the Development Property to be reimbursed and a
copy of thc 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;
(iij) 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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(iv) The Developer must have obtained approval from the Authority and the City
of a parking and traffic 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
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MN190.111
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block on which the Development Propcrty is located and fully executed casements and
other agreements allowing for the construction, operation, and maintenance of the
parking spaces and egresses and ingresses to the block on which the Development
Property is located;
(v) the Redeveloper has deposited with the Authority an irrevocable bank letter of
credit in the amount of $157,500 in a form acceptable to the Authority, or alternative
security acceptable to the Authority, which letter of credit securcs Redeveloper's
obligation to commence and complete construction of all the Minimum Improvements as
required under Article IV hereof; and
(vi) there is no uncured Event of Default.
(b) The Authority will disburse $125,000195.000 (the "Second Disbursement") upon the
Developer's satisfaction of the following conditions:
(i) the conditions set forth in (a) were and continue to be met;
(ii) receipt and approval by the Authority's executive director of a copy of
purchase agreements for the parcels of the Development Property to be reimbursed and a
copy of the ccrtificate 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);
(iii) the Redeveloper has deposited with the Authority an irrevocable bank letter
or credit in the amount of $125,000195.000 in a form acceptable to the Authority, or
alternative security acceptable to the Authority, which letter of crcdit secures
Redeveloper's obligation to commence and complete construction of all the Minimum
Improvements as required under Article IV hereof;
(iv) receipt by the Authority's Executive Director of a copy of the articles of
incorporation, bylaws, and any restrictivc covenants for thc townhome or condomimum
association created for the Minimum Improvements; and
(v) there is no uncured Event of Default.
(c) Notwithstanding anything to the contrary hercin, no disbursements will be made
under this Section after June 30, 2004, and if the conditions for making either the First
Disbursemcnt or the Second Disbursement are not met by that date, the Authority has no further
obligation to rcimburse Developer fi)[ 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 thereon on at a
rate of interest that is the greater of rate of 6.5% per annum or the rate reflecting thc true
FMF-240630v5
MN190-111
10
.
interest cost of long-term bonds issued to refund the temporary TIr Bonds, accrued from
the date of the First Disbursement ("First Disbursement Date"), in semi~annual
installments payable on each August 1 February ], commencing August 1, 2006 and
continuing through February I, 2022 (each a "Payment Date"). The payments shall be in
the amounts set forth in Exhibit B hereto, provided that upon issuance of the long-tcrm
Tlr Bonds, Exhibit B will be revised to ref1ect the adjustment in interest rate if the true
interest cost on the TIr Bonds is greater than 6.5%.
(ii) Payments shall be appl ied 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 Fcbruary 1 and August 1 and added to the
Principal Amount.
(iij) 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 Dcvelopment 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 amount of Available Tax Increment is
insufficient to pay the amount due on that Payment Date, the Developer shall pay to the
Authority, within 10 days of written demand by the Authority, an amount equal to the
difference betwcen 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 Incrcment is subject to calculation by the County and
change in State law. The Developer further agrees and understands th<ft 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, 20 II and February 1 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 been
reimbursed on any prior Evaluation Date) then on that Evaluation Datc the Authority
shall reimburse the Developer for the aggregate deficiencies paid by Developcr 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.
.
F M 1.24063 Ov 5
MN190-111
11
.
.
.
(vii) The Authority makes no warranties or representations that Available Tax
Increment will be suiJicient to pay the Principal Amount or interest thcreon.
Scction 3.5. Recaoture A!!reement. (a) Within 60 days after c1osinl! on
RedeveloDer's sale to third Darties of the final unit of comDleted Minimum ImDrovements
(the "Final Closin!! Date"). the Redeveloner must deliver to the Authority evidence of:
ill the al!l!rel!ate nroceeds from sales of each unit sold to third narties ("Sale
Proceeds"): and
!ill the al!l!rel!ate fees received bv Redeveloner in connection with the
develonment of the RedeveloDment Pronerty and sale of the Minimum
Improvements ("DeveloDer Fees").
Evidence of Sale Proceeds shall include conies of each c1osin!! statement and certificate of
real estate value. The term Sale Proceeds means the amount received bv RedevcloDer at
closinl!. net of usual and customary settlement and tinancinl! costs. Settlement costs
include titlinl! and transfer costs. title insurance. survey fees. taxes and assessments or
other similar costs. Financinl! costs include credit reference fees. annraisal exoenses.
permitted oril!ination fees that are naid bv the buyer. or other costs of finanein!! the
acouisition. If the terms of the sale Drovide for installment navments bv the buyer to the
Redeveloner. the purchase orice shall be determined usin!! the Drincinal amount owin!! to
the Redeveloner as of the date of c1osinl!.
Evidence of DcveloDer Fees shall include records reasonablv satisfactory to the Authoritv
demonstratin~ the amount of such fees. aecomnanied bv a written statement from an
indeoendent certified Dublic accountant that the Develoner Fees reoresent an accurate
statement of the total revenues received bv RedeveloDcr in connection with the
d velo ment of the Redev n Pr ert and sal . h Minimum 1m ro
S ()
which the total rent of the total
Sale Proceeds is referred to as the "Excess Profit." After the C1osin~ Date. and
within 1 () days after receiot of written notice from the Authority. the Redevelooer must Dav
to the Authority one half of the Excess Profit. Such Davment will not be considered
Available Tax Increment for the ourooses of this A~reement and will not relive any
oblil!ation by Redevelooer under Section 3.4(d) hereof.
Section 3.6. Use of Tax Increment. Except as set forth hcrcin, the Authority shall havc
no obligation to the Developer with rcgard to its use of Tax Increment and may use Tax
Increment and for any lawful purposes, whcthcr set forth herein or othcrwise.
!-:MI-2401i30v5
MN190-111
l2
.
.
.
notify the Developer in writing of its approval. Such change in the Construction Plans shall, in
any event, be deemed approved hy the Authority unless rcjected, in whole or in part, by written
notice by the Authority to the Developer, setting forth in detail the reasons therefor. Such
rejection shaH be made within ten (10) days after receipt of the notice of such change. The
Authority's approval of any such changc in the Construction Plans wiII 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
Improvcments by JlliyNovember 1, 2004, and shall substantially complete the construction of all
the Minimum Improvcments by October 1, 2006.ADril 1. 2007. Notwithstandin!! such
comDletion date. the RedeveloDer acknowled1!es that the minimum market value described
in the Section 6.3 will be effective as of .Januarv 2. 2005. and that such value reflects the
value of all units of the Minimum Imorovements re1!ardless of how many units are
comDleted bv that date. 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 approvcd by the Authority. For
the purposes of this Agreement, "commencement" means that all existing buildings have becn
demolished and installation of footings, foundations or other visible improvements beyond
excavation and grading 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 commenccd 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 thc land, and shall run with the propcrty and
be binding upon all successors and assigns to the Development Property. After the date of this
Agreement and until construction of thc Minimum Improvements has been completed, the
Developer shall make reports, in such dctail 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. Ccrtificate 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 thc Agreement relating solely to the obligations of the Dcveloper to construct the
Minimum Improvements (including the datcs for beginning and completion thereof), the
Authority will furnish the Dcveloper with a Certificate shown as Exhibit D. Such certification
and such determination shall not constitute evidence of compliance with or satisfaction of any
obI igation of thc 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 ccrtification in aceordallce with
the provisions of this Section 4.4 of this Agreement, thc Authority shall, within thirty (30) days
aftcr written rcquest by thc Developer, provide the Developer with a written statement,
indicating in adcquate detail in what respccts the Dcveloper has failed to complete the Minimum
I;MI"-2406JOv5
MN190-111
14
ARTICLE VI
.
Tax Increment; Taxes
Section 6. J. 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 thc Authority and the
Developer are derived from real estate taxes on the Development Property, which taxcs must bc
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 Developer
acknowledges that this obligation 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 fecs.
.
Section 6.2. Review of Taxes. The Developer agrces 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 thc Development Propcrty or any part thereof; or (3) willful
rcfusal to reconstruct damaged or destroyed property pursuant to Section 5.1 of this Agreement,
except as provided in Section 5.1 (e). The Developer also agrees that it will not, prior 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.
Section 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
Valuc") 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 shall be substantially in the form attached hereto as
Exhibit C. Nothing in the Assessmcnt Agreement shall limit the discretion of the assessor to
assign a market value to the property in excess of the Minimum Market Valuc. The Assessment
Agreement shall remain in force for the period specified in the Assessment Agreement. The
Developer shall cause thc 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
residcntial unit within the Minimum Improvements from and after the date that such unit is
FMT-240630v 5
MN190-111
18
substantially completed and sold to a third party. The Assessment Agreement shall include a
. termination provision substantially reflecting the terms of this paragraph.
.
.
LMT-240(,30v'i
MN190-111
19
.
.
.
Section 8.3. Relcase and Indemnification Covenants. (a) Thc Developer releases from
and covenants and agrees that neither thc Authority nor its govcrning body members, officers,
agcnts, scrvants, or employees shall be Iiablc for and agrees to indemnify and hold harmless the
Authority and its governing body membcrs, officers, agcnts, servants, and employces against any
loss or damage to property or any injury to or dcath of any person occurring at or about or
resulting from any defect in the Minimum Improvements.
(b) Except for any willful misreprcsentation or any willful or wanton misconduct of
the following named parties, the Devcloper agrees to protect and defcnd the Authority and its
govcrning body mcmbers, oiTiccrs, agents, servants, and employees now or f()fcver, and further
agrees to hold the aforesaid harmlcss from any claim, dcmand, suit, action or othcr proceeding
whatsoevcr by any pcrson or entity whatsoever arising or purportedly arising from this
Agrecment, or the transactions contemplated hercby or thc acquisition, construction, installation,
ownership, maintenance, and operation of the Minimum Improvementst includinl! without
limitation anv claim for relocation benefits made bv anv owner or occuoant of anv oarcel
of the Redevelooment Pronertv.
(c) Neither thc Authority, nor its governing body members, officers, agents, scrvants,
and employees, shall not bc liable for any damagc or injury to the persons or property of the
Developer or its officers, agents, servants, or employees, or any other person who may be about
the Development Propcrty or Minimum Improvements, due to any act of negligence of any
person.
(d) All covenants, stipulations, promIses, agreements, and obligations of the
Authority contained hcrein shall be deemed to be the covenants, stipulations, promiscs,
agrcements and obligations of the Authority, and not of any governing body mcmber, ofTicer,
agent, servant, or employee of the Authority in the individual capacity thereof.
(e) Nothing in this Agreement shall be construed to constitute a waiver of any
statutory or common law immunity 1i-om or limitation on liability to which the Authority is
entitled under law, including but not limited to thosc set forth in Minnesota Statutes, Chaptcr
466.
LMr.240630v5
MN190.111
23
.
.
.
ORA Agenda - 05/05/04
6.
Continued - Consideration to hear an undate on redevelopment of Block 52,
I talked with Bob Cunningham, TOLD Development Company, on April 26. He reported they
had a signed Letter of Intent with Froslie but not a Purchase Agreement. He was meeting with
the Walgreen's people on April 27 in the afternoon to get direction from them whether to
proceed or not given timing and pricing. He said he would give me an update but I have not
heard since.
.
.
.
ORA Agenda - 05/05/04
7.
Public "carin!! - Consideration to approve amending the BRA Business Subsidy
Criteria.
A. Reference and baekeround:
At the April 7, 2004, annual meeting of the HRA, the commissioners made a motion calling for
a public hearing date to amend the Business Subsidy Criteria. The said public hearing notice
appeared in the local newspaper on April 29, 2004 (See Attachment A..) The proposed
amendment to the Criteria, Section 6. PROCEDURES being: Change the non-refundable fee
associated with the Preliminary Development Agreement for TIF from $5,000 to $7,500. This
fix consistency of the liRA motion offebruary 4,2004, to increase the deposit fee from
$5,000 to $7,500.
OPEN AND CLOSE TilE PUBLIC HEARING FOR COMMENTS.
H. Alternative Action:
1.
A motion to approve amending the Business Subsidy Criteria for the Housing and
Redevelopment Authority in and fl)f the City of Monticello, Minnesota, page 4, Section
6, PROCEDURES, to read as f()llows: The applicant will execute and suhmit the
Preliminary Development Agreement accompanied by a non-refundable fee of $7.500.
2. A motion to deny approval to amend the Business Subsidy Criteria for the HRA
relative to non-refundable fee increase.
3. A motion to table any action.
C. Recommendation:
Recommendation is alternative no. ], this a housekeeping, follow-up item from the annual
meeting.
D. Supporting Data:
Public hearing notice and excerpt for Business Subsidy Criteria for amendment.
:'.
\'
~: , , NOTICE OF PUBLIC HEARING
.4 Notice is hereby given that a public hearing will be held by the City of Monticello
.' Planning Commission on May 4th, 2004 at 6:00 p.m., in the Monticello City Hall to
'," consider the following matter:
: PUBLIC HEARING: Consideration of a request to amend the R-1 A zoning district
, design standards.
· Location: City of Monticello
'to Applicant: Monticello Planning Commission
. Written and oral testimony will be accepted on above subjects, and all persons
esiring to be heard on referenced subjects will be heard at this meeting.
Note: Decisions of the Planning Commission will be subject to the approval or
denial of the City Council and will be considered on Monday, May 10th, 2004 at 7
p.m., at the Monticello City Hall.
, .' -Fred Patch, Chief Zoning Official
(April 22, 29, 2004)
'~ \
" NOTICE OF PUBLIC HEARING
, Notice is hereby given that a public hearing will be held by the City of Monticello
, Planning Commission on May 4th, 200~ at 6:00 p.m., in the Monticello City Hall to
consider the following matter:
.' PUBLIC HEARING: Consideration of a request for a simple subdivision to create
two buildable lots in an R-1 district; a request for a variance to create a single-.fam-
. i1y lot of less than 12,000 square feet in an R-1 district; and a request for a condi-
tional use permit allowing for an accessory use structure to exceed 10% of the rear
. . yard area.
Location: 742 East Broadway, Lot 3,4, and 5, Block 11, Lower Monticello
Applicant: Darren Klatt
Written and oral testimony will be accepted on above subjects, and all persons
desiring to be heard on referenced subjects will be heard at this meeting.
Note: Decisions of the Planning Commission will be subject to the approval or
denial of the City Council and will be considered on Monday, May 10th, 2004 at 7
p.m., at the Monticello City Hall.
-Fred Patch, Chief Zoning Official
(April 22, 29, 2004)
NOTICE OF PUBLIC HEARING
Notice is hereby given that a public hearing will be held by the City of Monticello
Planning Commission on May 4th, 2004 at 6:00 p.m., in the Monticello City Hall to
consider the following matter:
PUBLIC HEARING: Consideration of a request to amend an existing conditional
. use permit, allowing for open and outdoor storage space as an accessory use in an
.. district.
" Location: 100 Chelsea Road, Lot 1, Block 2, Oakwood Industrial Park
Applicant: Simonson Lumber
Written and oral testimony will be accepted on above subjects, and all persons
desiring to be heard on referenced subjects will be heard at this meeting.
Note: Decisions of the Planning Commission will be subject to the approval or
denial of the City Council and will be considered on Monday, May 10th, 2004 at 7
" 'p.m., at the Monticello City Hall. .
:. -Fred Patch, Chief Zoning Official
~ril 22, 29, 2004)
T"~
, .
::0'
'.
NOTICE OF PUBLIC HEARING
HOUSING AND REDEVELOPMENT AUTHORITY
r' " 'IN AND FOR THE CITY OF MONTICELLO
, 'COUNTY OF WRIGHT
STATE OF MINNESOTA
:. NOTICE IS HEREBY GIVEN that the Housing and Redevelopment Authority in
and for the City of Monticello, Minnesota, will hold a public hearing on Wednesday,
May 5, 2004, at approximately 6:00 p.m., at City Hall, 505 Walnut Street, Monticello,
Minnesota, relating to amending the Business Subsidy Criteria pursuant to
Minnesota Statutes, Section 116J.993 through 116J.994. The proposed amend-
ment to the criteria to be adopted is available for inspection at City Hall.
All interested persons may appear at the hearing and present their views oral-
ly or in writing.
BY ORDER OF THE HOUSING AND REDEVELOPMENT AUTHORITY
'.' -Ollie Koropchak, Executive Director
: ,,(April 29, 2004)
~1iq~ ~
-I
...
8 aBEd-vDDe '6e IPdV '^epsJn4.l-S6W!l. ('UU!~) OIl60!lUOL^J
, ...
GENERAL
WELLNESS
HEALTHY HEARTS
If you or a loved one has
heendiagnosed with heart
problems, this group can
help you adjust to new life-
styles, diets and medications.
Meets monthly on the third
Monday, 7-8:30 p.m.
STROKE SUPPORT GROUP
A free support group for '
people who have had a stroke
and their families. Meets
monthly on the second
Wednesday,lc2 p.m.
BEFORE SURGERY
eDUCA nON FOR CHILDREN
Children view a video about
hospilal procedures, from
ad,mitting, tQdischarge, and
then tour the surgery depart-
,rnent. Call to schedule.
TOB4CCO
INTERVENTION
PROGRAMS (TIP)
GHTINGSTARTED
An introductory group session
ahout tobacco use, how to
determine readiness to quit,
and options available to sup-
port your decision. Aug. 2,
7-8:30 p.m.
QUIT ON YOUR
OWN PROGRAM*
A lobacco interventionist will
help design a self-directed
program that fits your learn-
ing style and schedule. You will
receive a one- hour consul-
tation, educational materials
and ongoing phone support.
Callto schedule.
FREEDOM
FROM SMOKING'"
A seven-week series c
ing health;issues asso,
with using tobllCCO, h
quit,cgping skills to I
relapse"a,odgroup su
BegiIls Aug. 9, 7:8:30
CPR AND FIR!
AID CQURSES
Classes mnbe customi
for businesses to meet
individual needs.
PEDIATRIC CPR*
Learn infant and chill
relieving airway ohstI
and the pediatric chaJ
survival. June 5 orJul
8 a.m.-noon.
FIRST AID AND INJL
PREVENTION~ADU
AND PEDIATRIC*
Learn basic first aid sJ
and when to seek mel
attention. June 5 Or J\
12:30~4:30p.m.
HEARTSAVER~FAC
(FIRST AID. AED, CP
Learn adult CPR, bas:
aid and how to use at
matic external ddibri
(AED). Recom.tpendt;
firefighters, police ani
. place employees. May
8 a.m.-4:30 p.m.
BASIC LIFE SUPPOR:
FOR HEALTH
CARE PROVIDERS*
Covers adult, infant a
child CPR, and foreig
airway obstruction. A
and 9, 5:30-9:30 p.m.
Buffalo Hospital invites you t
www.buffalohospitaLorg or c
asterisk* .
"/. ~ 0
o"osp\\~ .
uu
-
.
.
HRA Business Subsidy Criteria
full repayment of the assistance with interest.
E. All husiness subsidy 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 subsidy requests should facilitate the "clean-up" of environmentally
unsound property where deemed appropriate.
H. 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.
1.
All business subsidy 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
*
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 be 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
.
Kennedy & Graven, Chartered
200 South Sixth Street
Suite 470
Minneapolis, MN 55402
(612) 337.9300
Tax 10 No. 41-1225694
March 19,2004
Statement No. 60735
City of Monticello
Accounts Payable
505 Walnut Street, Suite 1
Monticello, MN 55362
Through February 29,2004
MN 190-00089 Acquisition of 218 Front Street/O'Connor
172.77
Total Current Billing:
172.77
.
I declare, under penalty of law, that this
account, claim or demand is just and
and that no p f it has been paid.
.
i
..r
OK TO PAY? oll,~
Code:~~3, ~o~(O
Initial ~
~.---
:.., '" I~
.
City of Monticello
Accounts Payable
505 Walnut Street, Suite 1
Monticello, MN 55362
Kennedy & Graven, Chartered
200 South Sixth Street
Suite 470
Minneapolis, MN 55402
(612) 337.9300
41-1225694
March 19, 2004
Invoice # 60735
MN190-00089 Acquisition of 218 Front Street/O'Connor
Through February 29, 2004
For All Legal Services As Follows:
2/11/2004 RJL Phone call with J. Latzig from J. Peterson's office
2/12/2004
.
2/16/2004
2/18/2004
2/23/2004
2/24/2004
Hours
0.10
RJL Voicemail from J. Peterson's office; intraoffice conference; 0.30
review file; dictate letter to J. Peterson's office re payment
of residential relocation claim
RJL Voicemails from K. Helvey and J. Peterson's office
RJL Voicemail from Julie Latzig
0.10
0.10
0.10
0.20
RJL
RJL
Revise letter to Koropchak
Phone calls to Helvey and Koropchak
Total Services:
$
For All Disbursements As Follows:
Fax
Photocopies
Postage
Total Disbursements:
Total Services and Disbursements: $
Amount
18.00
54.00
18.00
18.00
18.00
36.00
162.00
$
3.00
5.60
2.17
10.77
172.77
.
Kennedy & Graven, Chartered
200 South Sixth Street
Suite 470
Minneapolis, MN 55402
City of Monticello
Accounts Payable
505 Walnut Street, Suite 1
Monticello, MN 55362
Through February 29, 2004
MN190~00101 General HRA Matters
(612) 337-9300
Tax 10 No. 41-1225694
April 8, 2004
Statement No. 60975
MN 190-00 111 Landmark Square Phase II (Masters Fifth Ave. Inc.)
.
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.
n-,;~~-\'-';,;;'-"(;",:.' "I
,1",.1 .!I.i....L> :,:!J ;:;:, ;;
! ~ !"'''.". ~.n", ,.
;
: ; ;' APR 1 2 "on4
I,' ;; fL u
r....__.".w".. ._"
( "I " I ~ .,' "
\ ~ t. t \~ ; d , j ".
171.00
307.00
Total Current Billing:
478.00
OK TO PAY? OUIL
Code: \ 'vl_~
~__.~_\~-O'~
Initial
.
.
~\?
.
Kennedy & Graven, Chartered
200 South Sixth Street
Suite 470
Minneapolis, MN 55402
(612) 337-9300
41-1225694
April 8, 2004
Invoice # 60975
City of Monticello
Accounts Payable
505 Walnut Street, Suite 1
Monticello, MN 55362
MN190-00101 General HRA Matters
~V~, l..\'~ ~Or \
Through February 29, 2004 / 7
For All legal Services As Follows:/
2/10/2004 SJB Phone call with 0 Koropchak re industrial park proposals
C' 2/27/2004
\Y
, f\ ::'0'-10
~'-\(o st'I' Cc=-
SJB
Review TOLD letter of intent re 111 W Broadway; memo to
Korophack re same
Total Services:
Hours
0.20
0.75
$
Total Services and Disbursements: $
Amount
,-~
135.00
171.00
171.00
.
City of Monticello
February 29, 2004
MN190-00111
Page: 2
Kennedy & Graven, Chartered
200 South Sixth Street
Suite 470
Minneapolis, MN 55402
'].l'3, L(Cos.8C~a\{O
Landmark Square Phase II (Masters Fifth Ave. Inc.)
Through February 29, 2004
For All Legal Services As Follows:
2/12/2004 EMT Message from O. Koropchak and review file.
2/19/2004
2/20/2004
......
--
2/25/2004
2/26/2004
Hours
0.20
EMT Review file and call to O. Koropchak regarding Master's 0.30
Fifth Avenue developer proposition.
EMT Review statute and TIF secondary material, discuss with 0.50
A. Waelti, and telephone call with O. Koropchak regarding
5 year rule issue.
SJB Phone messages from/to 0 Koropchak re ammendment
to Fluth contract
SJB Phone call with 0 Koropchak re contract; revise same and 0.70
email to all parties
0.20
Total Services:
$
Total Services and Disbursements: $
Amount
29.00
43.50
72.50
36.00
126.00
307.00
307.00
.
.
.
liRA Agenda - 05/05/04
9.
Executive Director's Report:
a) WSI Industries, Inc. - The EDA approved a $350,000 real estate acquisition loan for
acquisition of the vacant Rcmmele Engineering building located at 213 Chclsea Road. See job
and wage levels. The closing is expected to take place on May 3 at the IDS Center. The
company currently leases space in Osseo and expects to move their operation to Monticello
over the next six months. The company does precision machining and assemblies specializing in
avionics and aerospace, computer, defense, power systems, medical, etc. Mike Pudil is the
President and CEO of WSI and previously was vice president of Remmele Engineering when
they constructed the facility here in Monticello. I've visited and toured the Osseo facility two to
three times within the last cight months. The reason for the past confidentiality: this is a public
held company and the shareholders had to be notified of the planned acquisition first.
b) Release of Assessment Agreement - With the sale of the Remmele building, Dorsey &
Whitney requested of Release of the Assessment Agreement which in this case notes the Bonds
debt was paid. Kennedy & Graven prepared the document for the closing which was executed
by the liRA Chair.
c) IIF District No. 1-22 Bonds - Wolfsteller and Koropchak are working with Ehlers and the
HRA Attorney relative to the refinancing of the temporary bonds.
d) Golf Outing Gratis Invitations - At this point, I've received 15 "yes" and 8 "no". Deadline
date is May 6, 2004.
c) Job and wage levels survey - I had a great response on the survey for job and wage levels
so when things slow down a little, I'll tabulate and complete the report.
t) Industrial Land Purchase - The final Purchase Agreement documents were f()rwarded to
Chadwick on April 27. The seller has til May 10 to respond. This for purchase of
approximately 120 acres of land for industrial development.
g) EDA Annual meeting - The annual report indicatcd a cash balance of $575,000 available for
industrial development. This is after the disbursement of the WSI loan.
h) County Partnership - Marketing the Partnership at the Albertville and Clearwater City
Councils in May.
i) Coffee Roasting - Looking to build a 4,000 - 5,000 sq ft stcel building. Some of you may
remember visiting this company in Minneapolis when they were a part of Red Wing Foods.
They branched off and leased space in BuiTalo. Deal from Maple Lake - TIF write-down of
land costs $18,500 per acre (up-front) and company pays for assessment of $60,000.
j) Production Stamping - Will try again to line up a tour for the IDC.
k) BRE Visit with Aroplax on May 6,9:00 a.m.
1) 224 East 4 Street - At the City Council meeting of April 12,2004, they did not approve the
purchase of this property. I did talk with a developcr and Larry Carter about the potential to
redevelop. The developer was going to look at the area and determine feasibility. I haven't
heard anything.
m)Relocation/Replacement costs - Given the property is occupied by ownership or tenant. If
.
HRA Agenda - 05/05/04
the City or HRA has no intent to acquire property and no intent to use condemnation,
relocation/replacement benefit is not an issue.
11) Attachmcnts 8.- With end-year reports for EDA, the finance department also printed two
reports associated with the I IRA. This is dollars paid by Aroplax and SMM due to the 10%
Local Contributions for TIP Districts back in the carly 1990's. Legislators did away with the
10(% Local Contribution a few years back. This moncy is available to the HRA for public
improvemcnts only. Total amount $47,740.78.
0) Bruce Hamond has applied for financing at First Minnesota Bank to construct a two story
building on the vacant lot along thc 200 block of West Broadway, south side. Needs to secure
first floor tcnant and bank appraisal completed prior to commence construction. Nice spin-oiT
from redevelopment efforts.
p) The EDAis requesting the City Council approve the concept plan i(>r site improvements to
the alley and plaza arca bchind the retail stores of the 100 block of West Broadway, south side,
and to order a feasibility study. Thc EDA, at this time, has not approvcd any funding.
.
2
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TAURUS NUMERIC TOOL ~E 03
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03/29/2004 15:19 7534284300
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DEVELOPMENT SERVICES
Economic Development Director
Phone:
Fax:
Email:
(763) 271-3208
(763) 295-4404
o 'lie. koropchukrli;c i. monticello. nm .us
MQNTICEll.O
CITY OF MONTICELLO, MlNNESOT A
JOB AND WAGE LEVEL ~ EXISTING JOBS
~
II
'W S' \ =
Please indicate number of current employees at each level and indicate the corresponding benefit level.
Number of Jobs
Hourly Wage
Level
Hourlv Value
of Voluntary
Benefits (5) "E.S~tol"l~')
.Full-time
Part-time
(Exc\. benefits)
Less than $7.00
$7.00 to $7.99
$8.00 to $9.99
$10.00to$11.99
~
II
;S
1
~
11L-
$12.00 to $13.99
fI 3.50
$14.00 to$15.99
:$ 3. C,b
$22.00 and higher
" ;3. h8
, :J. 70
-I ~ '6'1
., ~. 00
$16.00 to $17.99
$\8.00 to $19.99
$20.00 to $21.99
L_\~
.
JOBSWMjE.2004
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
'~l\~JA ~ B
.
TAX INCREMENT FINANCING LOAN 1-12 AROPLAX
FINANCIAL REPORT
December 31, 2003
LOAN TOTALS ~ 1 ~12 AROPLAX
Payback began in May, 1993 for 9 years ending in November, 2001.
Semi-annual principal and interest payments total $2369.30 for the year.
Principal
Interest
TOTAL
ORIGINAL
$15,000.00
$6,323.59
$21,323.59
PAID
$15,000.00
$6,324.52
$21,324.52
REMAINING
$0.00
($0.93)
($0.93)
-,....,..."..._-_.-...,..,~"'-----.........'~I~..___-..........'~'~I..-....____--........'~'~I.....,__-__~
REVENUES
Principal Payback
Interest Payback
$15,000.00
$6,324.52
TOTAL REVENUES
$21,324.52
.
EXPENDITURES
TOTAL EXPENDITURES
$0.00
FUND BALANCE FOR TIF 1~12 AROPLAX
$21,324.52
..
"'funds are available only for public improvements
.
EDA annual reports.xls: 4/14/2004
~-\\Qcl~
P
.
TAX INCREMENT FINANCING LOAN 1-14 SUBURBAN
FINANCIAL REPORT
December 31, 2003
LOAN TOTALS ~ 1~14 SUBURBAN
Payback began in May, 1993 for 8 years ending in May, 2000.
Semi-annual principal and interest payments total $3522.52 for the year.
Principal
Interest
TOTAL
ORIGINAL
$19,575.00
$6,843.82
$26,418.82
PAID
$19,575.00
$6,841.26
$26,416.26
REMAINING
$0.00
$2.56
$2.56
REVENUES
-#......_-#....,,--,......._-,......_-.,~--#~---..-..,.__...-r,__.........,........__,~.__.........,___#~___...,..._
Principal Payback
Interest Payback
$19,575.00
$6,841.26
TOTAL REVENUES
$26,416.26
.
EXPENDITURES
TOTAL EXPENDITURES
$0.00
FUND BALANCE FOR TIF 1-14 SUBURBAN
'"
$26,416.26
"'funds are available only for public improvements
.
EDA annual reports.xls: 4/14/2004