HRA Agenda 09-01-2004
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AGENDA
MONTICELLO HOIJSING AND REDEVELOPMENT AUTHORITY
Wednesday, September 1,2004 - 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.
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Staff: Rick Wolfsteller, Ollie Koropchak, and Angela Schumann.
Call to Order.
Consideration to approve the August 4, 2004 HRA minutes.
Consideration of adding or removing items from the agenda.
Consent Agenda.
A. Consideration to approve the Certificate of Completion associated with the Contract
for Private Redevelopment between the HRA, Hans Hagen Homes, and the City of
Monticello.
Consideration to authorize entering into a Preliminary Development Agreement for
redevelopment of Landmark Square II, Commercial project and deposit of $7,500.
6. Consideration and feedback from meeting with lender and builder relative to the housing
remodel and redevelopment program criteria concept of the City of Richfield.
7. Consideration to review a second Purchase Agreement for acceptance, rejection, or counter-
offer for the property located at 725 West 3 Street.
8. Consideration to authorize payment of HRA bills.
9. Consideration of Executive Director's Report.
to. Committee Reports.
II. Other Business.
12. Adjournment.
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MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, August 4, 2004 - 6:00 p.m.
505 Walnut Street - Bridge Room
Commissioners:
Chair Bill Fair, Vice Chair Darrin Lahr, Brad Barger, and Steve
Andrews.
Commissioners Absent:
Dan Frie
Council Liaison:
Roger Carlson
Staff:
Rick Wolfsteller, Ollie Koropchak, and Angela Schumann.
1. Call to Order.
Chairman Fair called the meeting to order at 6:00 PM and declared a quorum.
2.
Consideration to approve the June 14,2004 lIRA minutes.
MOTION BY COMMISSIONER BARGER TO APPROVE THE MINUTES OF THE
JUNE 14th, 2004 liRA MEETING.
MOTION SECONDED BY COMMISSIONER ANDREWS. MOTION CARRIED.
3. Consideration of adding or removing items from the agenda.
A report from Masters 5lh Avenue on a downtown project was added as an item between
current items 4 and 5.
A discussion on Twin City Die Cast's job creation was added as number 11.
4. Consent Agenda.
A. Consideration to adopt a resolution approving the decertification ofTIF District
No. 1-13 (Standard Iron & Wire Works, Inc.) of the City of Monticello
MOTION BY COMMISSIONER ANDREWS TO APPROVE TI IE CONSENT
AGENDA.
MOTION SECONDED BY COMMISSIONER BARGER. MOTION CARRIED.
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Report from Masters Sth A venue
Brad Johnson, representative for Masters 5th Avenue, presented the Commission with a
pro forma, analysis of the but-for test, and revised concept for Landmark Square n. A
return-on-investment and equity analysis is included in the but-for test.
The proposal is different than the housing project previously approved by the HRA.
Fluth thanked HRA for their patience and coopcration as thcy worked through the last
concept. Johnson stated that in requesting the creation of thc new district for this project,
they are sccking pay as you go. Johnson indicated that somc tenants are concerned about
downtown growth in rclationship to thc growth in other areas of the community. Johnson
stated that they believc the key is to creatc a reason to go downtown.
Masters Sth Avenue's current concept adds at least onc restaurant to the downtown area.
Johnson referred to the concept plan and noted that the parking layout is somewhat
different to accommodate the need for grcatcr parking. The proposed plan accounts for at
least 7 spaces per 1 000 feet.
The developcrs are also considering an option to create a second story. However, they do
have rescrvations about the mix of uses and consider it less risk to keep it one-story.
Johnson stated that the dcveloper is morc comfortable owning the properties and leasing
the units.
Koropchak noted that it would be important for the developers to examine up-front
whether they could meet the IS% improvement test.
Johnson cxplained that thc dcveloper has all the land represented in the concept plan
under contract. He also noted that as the area is already zoned propcrly for this type of
dcvelopment, they don't need to go through a lot to get this project to move.
fair asked if the project all be retail. Johnson stated that it would be, however, if they
went two stories, the second floor would be commercial.
Koropchak stated that moving forward on this proposal would involve creating a new TlF
district and K noted that when a new TIF district is formed, therc is a required
dcvelopment agrccment and a fee of $7,SOO. Shc inquired what the developers are
rcquesting currently from the HRA.
Johnson statcd they would likc to know if the )--IRA would like to movc this project
forward.
fair asked if]iqllor liccnses are still available in terms of anticipating the necds of
prospcctive tenants. Wolfsteller indicated that therc are licenses available.
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Fair, Lahr and Barger expressed that they are in favor of the proposed plan.
Fair asked about the developer's timetable for the project. Barry Fluth, the project
developer, stated it depends on the tenants. They are hoping to break ground this fall.
Angela Schumann indicated that thc developers could work towards the September DAT
agenda in September and should work with planning staff in working through plan
details.
5. Consideration to review a Purchase Agreement for acceptance, rejection, or counter~ofTer
for the property locatcd at 725 West 3rd Street.
Koropchak noted that thc HRA had discussed this item briefly at the special meeting.
The offcr prescnted states "as is", and declines inspection.
Koropchak stated that she had spoken with Commissioncr Frie on the ofTer. She noted
that the home is not a rcntal. Frie recommcnded that the HRA not offer more than
$100,000.
A brief discussion on the merits of the proposal ensued.
MOTION BY COMMISSIONER ANDREWS TO REJECT THE PURCHASE
AGREEMENT AS PRESENTED AND NOT INTERESTED.
MOTION SECONDED BY BARGER. MOTION CARRIED
6.
Consideration to review for discussion housing rehabilitation and redevelopment program
criteria from City of Richfield and Crystal.
Koropchak referred to the information on similar programs provided by Richfield and
Crystal. Koropchak noted that Richfield's loan program for rehabilitation was the
program that most interestcd Chair Fair.
Richfield's program required a minimum of $50,000 in remodeling costs for an interest-
frce loan and up to a maximum of $15,000. Thc loan would be payable upon the sale of
home or forgiven after 30 years. Koropchak stated that the information did not specify
whethcr it applied to interior, exterior, or both.
Fair asked if Richfield targeted a spccific type of housing, for example the lowcst
valuations. Koropchak stated that she did not think so.
Koropchak also referred to Richfield's new construction program. The buyer enters into
a development agreement with the I IRA. The premise is to buy existing low valuation
homes, tear them down and build something new.
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Fair indicated that he is seeking an opinion from the other Commissioners on whether the
HRA is interested in a housing rehabilitation or redcvelopment project. He would also
like to know if thcre is interest in the program, what types of guidclines would bc
acceptable.
Wolfsteller indicated that a program like this seems to be a placc where the HRA started.
Koropchak compared it to downtown revitalization program for fa<;ade improvements.
Koropchak offered to set up a mecting to talk with builders, bankers and the building
department about the concept.
Lahr asked how much was available for this program. Koropchak answered that
approximately $450,000 was available.
The Commissioners discussed guidelines for a concept program, including desircd
project outcomes, financing options and terms, the inclusion/exclusion of rental
properties, program incentives and the costs of remodeling.
Fair rccommended the commissioners look over information, write down their ideas and
come back with suggestions at the next meeting. Fair also asked staff to seek more
information from banks and realtors. Fair recommended a workshop with some of the
professionals to discuss thc project. Fair directed stafTto explorc how many people are
taking advantage of the Richfield and Crystal programs.
7.
Consideration to discuss request for continued monetary support for industrial
development - 2005 Budget Prcparation.
Koropchak statcd that budget requests are needed for the coming ycar. Previously, the
HRA committed $500,000, with the City matching close to that, creating a total of about
$1 million for the project. The Small Industrial group has lobbied to continue funding to
keep this project going.
Koropchak indicatcd that the City is close to closing on the Chadwick deal. The funding
for continued support would come from districts 5 and 6. Koropchak stated that thcre is
about $600,000 available. Koropchak noted her recommendation as outlined in the staff
report.
Fari asked if the additional investment would be for improvements to preparc the land.
Koropchak explained that the funds would bc for purchase or improvements. Wolfstellcr
indicated that the money previously allocated will most likely be gone in the purchase
oD5 acres, another $300,000 would be needed for the improvements.
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MOTION BY COMMISSIONER BARGER TO COMMIT $100,000 OF TIF FUNDS
FOR INDUSTRIAL LAND DEVELOPMENT AND REQUEST THE CITY COUNCIL
MATCH THE $100,000 FOR BUDGET YEAR 2005.
MOTION SECONDED BY COMMISSIONER LAHR, NOTING THAT "rHE CITY
COUNCIL MATCH WAS REQUIRED TO SECURE HRA FUNDING.
MOTION CARRIED.
Koropchak notcd that the Markcting Committee had approximatcly $25,000 left in
funding. She inquired whether additional funding would be necded for marketing the
industrial park and possible housing project and should be requested during budgeting.
Barger inquired how long it would take to get improvcments into the new industrial park.
Wolfsteller commented that thcy should be in sometime next summer. Barger indicated
marketing should begin before that.
Lahr stated that $25,000 seems reasonable at this time.
8.
Consideration to authorize payment of HRA bills.
Fair questioned the invoice from O'Connor. Koropchak stated that shc would discuss the
mattcr with Bubul.
MOTION BY COMMISSIONER ANDREWS TO AUTHORIZE PAYMENT Of lIRA
BILLS.
MOTION SECONDED BY COMMISSIONER LAHR. MOTION CARRIED
9. Consideration of Executivc Director's Report.
Koropchak notcd that the annual TIf reports did get in on time.
Barger inquired where industrial leads comc from in the majority of cases. Koropchak
stated that most come through phone calls.
Koropchak informed the liRA of two recent rezones from industrial to commercial
pro perty.
10. Committee Reports.
A.
Marketing - Koropchak noted the two markcting pieces put together on behalf of
the IDC for rcsident guides.
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B.
Small Industrial Group - Koropchak discussed a rccent letter from United
Properties requcsting joint marketing of industrial lands. Koropchak stated that
the IDC is not interested in working with UP. Koropchak stated that UP has
expressed interest in purchasing the whole park. Fair indicated that the joint
marketing proposal is a little prcmature. Koropchak did note that the jDC is
concerned that UP will buy the proposed City park from Chadwick. Wolfstcller
stated that the Purchase Agrcement prevents Chadwick from selling to others.
11. Twin City Die Cast Job Creation
Koropchak explained that the compliance date for job creation had been extended, and
that job and wage levels had been amended at that timc. However, when the company
recently completed their report for the new compliance date, they fall short of the wage
requiremcnts. Koropchak described the remedy/criteria in the contract which states that
if there is a deficiency in wages, the HRA' s pay-as-you-go would be reduced at a rate
based on thc numbcr of jobs they are deficient, approximately $5300 per job. Koropchak
has emailed Bubul for coniirmation but has not had received a reply.
Lahr recommended that we follow what the state does in similar situations.
Wolfstcller also recommended finding out the state's response. In the interim, he
recommended scnding a letter notifying Twin City Die Cast about the deficiency. The
Commissioners supported W olfsteller' s rccommendation.
12.
Other Business.
Koropchak stated that thc proposed I-94/CSAH 18 interchange will be discussed at the
upcoming Council workshop.
13. Adjournment.
MOTION BY COMMISSIONER BARGER TO ADJOURN AT 7:45 PM.
MOTION SECONDED BY COMMISSIONER LAHR. MOTION CARRIED.
HRA Chair
Recorder
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HRA Agenda - 09/01/04
. 4A. Consideration to approve the Certificate of Completion associated with the Contract
for Private Development between the HRA. Hans Haeen Homes. and the City.
A. Reference and backeround:
The HRA, Hans Hagen Homes, and the City of Monticello entered into a Contract for Private
Development on April 22, 2002. The Contract called for the redevelopment of four parcels
along Front Street and construction of 10 town home units completed by July 1,2003. The
Assessment Agreement filed states a market value of at least $190,000 per unit as of January 2,
2003.
According to the Building Department, the last of the ten Certificate of Occupancies was issued
on March 1, 2004. Therefore, the HRA is requested to approve the Certificate of Completion
stating all ten units (minimum improvements) are constructed and completed per the Contract.
B. Alternative Action:
1.
A motion to approve the Certification of Complction stating the developer (Hans Hagen
Homes) completed the construction often town home units (minimum improvements)
per the Contract for Private Devclopment between the liRA, Hans Hagen Homes, and
the City.
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2. A motion to deny approval of the Ccrtificate of Completion associated with the
Contract of Privatc Developmcnt bctween the HRA, Hans Hagen Homes, and the City.
C. Recommendation:
The City Administrator and Executive Director recommend Alternative No.1. 'fhis is a housc
keeping item. Since this was up-front financing, the Contract included an Assessmcnt
Agreemcnt which states thc HRA will start to collect tax increment beginning taxes payable
2004 at a total value of at least $1,900,000 although the project was not completcd until March
2004.
D. Supporting Data:
Certificate of Completion and cover letter.
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CERTIFICATE OF COMPLETION
(Minimum Improvements)
The undersigned hereby certifies that Hans Hagen Homes, Inc. (the "Developer") has fully
cornplied with its obligations under Anicles III and IV of that document titled ''Contract for Private
Development." dated APRU_ 22 ,2002 arnong the City of Monticello. Minnesota, the
Housing and Redevelopment Authority in and for the City of Monticello, Minnesota and the
Developer, with respect to construction of the Minimum Improvements on the property described in
Exhibit A thereto in accordance with the Constructlon Plans, and that the Developer is released and
forever discharged from its obligations to construct of the Minimum Improvements under Articles
III and IV.
Dated: SEPTEMBER .~,200_~.
HOUSING AND REDEVELOPMENT
AUTHORrry IN AND FOR THE
CITY OF MONTICELLO, MINNESOTA
By
Its Chair
By
Its Executive Director
STArE OF MINNESOTA
SS.
COUNTY OF WRIC;HT
The foregoing instrument was acknowledged before me this _,",. day of_~._._.__, 20___,
by _ and ,the Chair and Executive Directorofthe
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Housing and Redevelopment Authority in and for the City of Monticello, Minnesota, on behalf or
the Authority.
Notary Public
THIS DOCUMEN-r DRAFTED BY:
Kennedy & Graven, Chartered
470 Pillsbury Center
200 South Sixth Street
Minneapolis. Minnesota 55402
(612) 337-9300
1>.1 (i - 2 () 7 W) 5 v (,
MN 1l)(Pi7
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EXHIBIT A
LEGAL DESCRIPTIONS
CERTIFICATEOF COMPLETION (MINIMUM IMPROVEMENTS)
That property located within the city of Monticello, Wright County, Minnesota and legally
described as follows:
Lots I through 10, inclusive, Block L Riverwallc Wright County, Minnesota.
D.I( ;-207 W)" v h
MNI90-<J7
September 2,2004
MONTICELLO
Mr. Hans Hagen
Hans Hagen Homes
941 NE I-lillwind Road
Fridley, MN 55432
Re: Certificate of Completion
Dear Hans:
Enelosed is the original executed Certificate of Completion for recording. The certificate notes the
completion of all minimum improvements (10 units) located within Rivcrwalk, City of Monticello.
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According to the Contract, the developer agreed to complete construction of the minimum
improvemcnt at July 1, 2003. The last certificate of occupancy was issued by the City Building Official
on March 1, 2004.
Congratulations. -rhe City of Monticello is proud of your development and thank you for doing
business with us. In the future, should you be interested in working with us again, please call me at
763~27 I -3208.
Sincerely,
HOUSING AND REDEVELOPMENT Alrn~IORITY
IN AND fOR THE CITY OF MONTICELLO
DL \<~o.,\l)~
Ollie Koropchak
Exccuti vc Director
Enclosurc
c:
I-lRA Cornrnissioners
'I'll" File
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MOlllicello City Ilall. 505 Walllut Street, Suite I, Monticello, MN 55302-8831 . (763) 295.2711 . Fax: (763) 295-4404
Office of Public Works, 'J09 Ciolf Course Rd_, Monticello, MN 553()2 . (763) 295.3170 . Fax: (763) 271-3272
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ORA Agenda - 09/01104
5.
Consideration to authorize entering into a Preliminary Develooment Al!reement for
Landmark Square II. Commercial and deposit of $7.500.
A. Reference and background:
At the August lIRA meeting, Barry Fluth and Brad Johnson presented a new concept plan for
Landmark Square II. '['he new concept includcd the redevelopment of three parcels located at
Third Street and Locust and the construction of a commercial building consisting of sevcn 1,200
sq ft units and one larger unit with mix uses as restaurants, coffee boutiques, etc. The
preliminary "but for" tcst proforma presented to the HRAindicated a need for TIF assistance in
the amount of $300,000. The developer provided evidence satisfying the following: Parcels
that make up 70% of the district are improved and to be considered "improved", 15% of the
parcel's area must contain improvements. The HRA liked the concept and encouraged the
developer to proceed with city staff and planner. A fall construction is depended on tenant
lease-up.
The developer requested to be on the liRA agenda in September and would like to start the
process for establishment of a new redevelopment TIF District which takes 6 to 8 weeks. It is
my understanding the developer has contacted the planning staff for an appointment to review
the commercial concept.
Two things will need to happen in establishment of the new district. First, the County will be
requested to remove the three parcels from District No.l-22 and secondly, the Building Official
will need to make an interior inspection of the three existing structures to determine that more
than 50(% of the buildings are structurally substandard to the degree requiring substantial
renovation or clearance.
Barry Fluth or Brad Johnson will be present at the HRA meeting.
B. Alternative Action:
1. A motion to authorize entering into a Preliminary Development Agreement for
Landmark Square II, Commercial with a deposit of$7,500.
2. A motion to deny authorization entering into the Preliminary Development Agreement
for Landmark Square II, Commercial as project too premature.
3. A motion to table any action.
ORA Agenda - 09/01/04
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Recommendation:
Recommendation is alternative no. 1. The developer and liRA must recognize no concept
review of the commercial project has been reviewed by city staff or consultants.
Authorization and receipt of the deposit allows the HRA to authorize Elhers to begin
preparation of a new district and Kennedy & Graven to prepare a Contract. At this point, no
an10unt of TlF has been approved, no site or building plans are approved and no guaranteed
outcome of the building official's inspection.
D. Supporting Data:
Preliminary Development Agreement
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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 Monticello, 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
thi s Agreement.
NOW, 'T'l-IEREFORE, 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 f()llowing:
(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
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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.
') 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 sati sfactory Contract f()r 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 dcsign proposal to be approved by the Authority
showing the location, size, and nature ofthe proposed Development, incl uding floor layouts,
renderings, elevations, and othcr 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 Developmcnt 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.
subject to:
It is expressly undcrstood that execution and implcmentationofthe 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 thc Authority; (ii) the purposes and objectives of any tax incrcment,
development, or othcr plan created or proposed for the purpose of providing financial
assistance for the Development; and (iii) the best intcrests of the Authority.
(b) A determination by the Developcr that the Development is feasible and in
the bcst interests of the Developer.
6. This Agreement is effective from the date hereofthrough ,200 . After
such date, neither party shall have any obligation hereunder except as expressly set forth to the
contrary herein.
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7. the Developer shall be solely responsible for all costs incurred by the Developer. In
addition, the Developer shall reimburse the Authority for Administrative Costs, as hercafter defined.
For the purposes of this Agrecment, the term "Administrative Costs" means out of pocket costs
incurred by the A uthority 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 ordcr to secure payment of the Administrative Costs, the Developcr shall deliver to thc
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 Admi nistrative Costs wi II exceed $ 7 . 500 and that additi onal security is required, the
Authority shall notify the Dcveloper 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 enforceabi I ity of any other provision of this Agreement.
8. This Agreement may bc 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
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(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 tcrm or
condition of this Agrcement or the Contract; or
(c) The Authority determines that its costs in performing under this Agreement
will exceed $ 7. 500and the Developer docs 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 term 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 Agrccment, 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.
11. If any portion of this Agreement is held invalid by a court of competent jurisdiction,
such decision shall not affect the val jdity of any remaining portion ofthe Agreement.
12. In the event any covenant contained in this Agreemcnt should be breached by onc
party and subsequently waived by another party, such waiver shall bc 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 eommunication between or among the parties shall be
sufficiently given if sent by mail, postage prepaid, return 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 1
Monticello, MN 55362-8822
Ann: 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
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the state of Mi nnesota. 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 ofthese 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
expeJi 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 matcrials 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 rcason
of thc 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 trom all such claims, demands, damages, and eauses 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 performance,
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.
17. 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 statutc,
common law or otherwise, and for all claims for damages, of whatcver 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 Agrecment between the pmiies.
[REMAINDER OF PAGE INTENTIONALL YLEFT BLANK]
D.IC.;-200RR7v I
MN190-1
5
.
.
.
IN WITNESS WHEREOf'. the Authority has causcd this Agreement to be duly executcd in
its namc and bchalf and its scal to be duly affixcd hcreto and the Devclopcr has causcd this
Agreement to be duly executed as of the day and year first above \\ilitten.
DEVELOPER
By
Its:
By
Its:
DJ(i-200887v I
MNI'JO-I
6
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.
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DJ(i.200gX7v I
MN190-1
HOUS[NG AND REDEVELOPMENT
AUTHORITY IN AND FOR THE
CITY OF MONTICELLO, MINNESOTA
By
I ts Chair
By
Its Exeeutive Director
7
.
.
.
HRA Agenda - 09/01/04
6.
Consideration and feedback from meeting with lender and builder relative to the
housing remodel and redevelopment proeram criteria concept of the City of Richfield.
A. Referenee and background:
At the August lIRA meeting, the commissioners discussed the two housing programs used in
Richfield and Crystal for possible application in Monticello. The two programs are a
remodeling loan program and an acquisition and demolition program. Chair Fair asked the
commissioners to review and give some thought to the programs prior to the September
meeting. Another option discussed by the commissioners was to target a redevelopment
project such as Block 54. The HRA approved retaining about $450,000 of pooling dollars
from TIF District No. 1-22 for the purpose of redevelopment. The commissioners requested
an account of number of loans and acquisitions completed in Richfield and Crystal.
On August 18,2004, Chair Fair and Koropchak met with Paul Kleinwachter, First Minnesota
Bank, and Mike Cyr, MLC Building & Remodeling, to discuss the programs and receive input.
Attached is a summary of the meeting. The Community Development Director and Building
Official were given copies of the programs and asked for input and particularly if man-power
was available for such services as Remodeling Advisor and Design Advice Service.
The first question to answer: Does a remodel or acquisition program have mcrit in Monticello?
Will there be interest? After a decision of yes or no to develop one or the other program, then
the purpose and criteria of the program will begin to take shape.
I have requested via the GIS a list of homes with market value of $1 00,000 and less and a list
with market values between $101,000 to $150,000 located within the core area of Monticello.
Open for discussion and direction.
.
.
.
SUMMAR Y OF DISCUSSION - HOUSING PROGRAMS
August 18, 2004
Paul Kleinwachter, First Minnesota Bank; Mike Cyr, MLC Building & Remodeling;
I-IRA Chair Bill Fair, and Director Ollie Koropchak.
Suggestions:
1. Define purpose of the program. To encourage and foster a vibrant core city, to encourage
home owner-occupancy, to encourage investment into the core city, to increase the housing
market value, and to use as an incentive for home-owners and home buyers.
2. Define the criteria of the program.
3. $10,000 for $50,000 improvements. Step criteria with maximum anlOunt.
4. Set maximum fund amount for use the first year. e.i. $100,000. And then evaluate program.
5. forgive after 5 to 10 years.
6. What does value-added mean?
7.
Define core area?
8. Program based on value, size, or age of house?
9. Market: L,enders, real estate agents, and builders.
Builders Home Show
Develop hand-out
.
SUMMARY - HOUSING PROGRAMS
NOT SUBJECT TO INCOME AND WAGE LEVELS
HRA Funds available $460,000
Transformation Homes Loan
Example:
$50,000 Minimum cost of remodeling
15% ofremodeling cost
$ 7,500 Interest Free Loan - Payable upon sale of home or forgiven after 30
years.
$100,000 Cost of remodeling
15% of remodeling cost
$ 15,000 Maximum amount ofHRA loan
For: Value-added improvements such as expanding space.
Who: Homeowners or home buyers
Maximum remodels - 30
Monticello Rediscovered - New Construction Program
. HRA purchases substandard home and demolishes - property on mailing list
.
Builder/Buyer Team submit bid
Normal core-city lot 10,890 sq ft X $4.83 per sq = $52,600 for lot
Maximum purchases - 4
QUESTIONS
Do you see one or the other program as something that would work in Monticello?
Core area only (north ofI-94)
Would you as a lender or builder be interested in participation?
(~~
TRANSFORMATION HOMES LOAN
2004 Application Package
.
A Ilhome transformation" means a major home remodel, increasing its livable space and its
value. Residents who enjoy their neighborhood, like the schools, and know the benefits of
the community are choosing to adapt their existing homes to meet their current needs.
The Transformation Homes Loan was developed to provide incentives for homeowners or
home buyers in Richfield to begin major remodeling activity. Program features include:
-+ Remodeling Advisor Services. Dave Schaffer will provide initial
remodeling advice as well as on-going assistance as you plan your project.
An attached letter explains potential services provided. Leave a message
for Dave on the Remodeling Connection: 612-861-9772.
-+ Design Advice Services. Paul Brugger is a design advisor who can meet
you in your home to discuss design options. Such advice may be
particularly useful when you're changing floor layouts or blending in an
addition. Call Paul's answering service at 952-930-6838 and reference the
Richfield remodeling program.
-+
The Transformation Loan. The Richfield Housing and Redevelopment
Authority (HRA) characterized the Transformation Loan as an "incentive
loan". The incentive is just a little more financing with terrific terms, so that a
homeowner may feel equipped to move forward on their remodeling project.
To apply for the loan, the cost of your remodeling project must be $50,000
or more. The loan may be 15% of your remodeling project, when the cost of
remodeling is $50,000 or more. The maximum loan amount is $15,000. It's
interest-free, and is payable upon sale of your property, or forgiven after 30
years. If you have questions, call 612-861-9778. Funds are limited.
.
Application Procedure:
1. Prior to startinq your proiect. obtain this application package which includes the
Remodeling Advisor letter, builder requirements and summary of design
considerations, loan application form, and a Remodeler Form for remodelers who
have not worked under the program previously.
2. Submit a complete application. A commitment of funds can only be made when all
required items have been received. Please note: The City of Richfield's Inspections
Division must approve aI/building plans, and may have requirements independent
of loan requirements. AI/ setback and zoning requirements must also be met.
3. Applications will be reviewed on a first-come, first-served basis, with priority being
given to projects that are most ready to move forward. Project read iness will be
determined by those that have completed drawings, have total project funding in
place (e.g. have a loan commitment or have closed on mortgage financing), and/or
..have ,a"remode!er...under,.contract. ,F.~nd ing.,wiILnotbe,held Jor..proj,ects .thatare..not
ready.
.
1212003
4.
Once an application and other required documents have been received and
reviewed, a loan commitment will be made.
.
Conditions of the Transformation Incentive Loan:
1. Submitted applications will be reviewed for appropriateness and completeness.
Projects generally must be value-added improvements such as expanding space.
Plans will be reviewed for design considerations.
2. The loan will be calculated at up to 15% of the initial contract price if the contract
price for remodeling is $50,000 or more, but not to exceed $15,000. The
commitment of funds is made at the beginning of the project.
3. Funds are limited. You may want to call ahead of time to find out if funds are still
available.
4. A Pre-Remodeling Condition Report is required by the HRA to meet city financing
and auditing requirements. A property evaluator (not an appraiser) contracted by the
HRA will spend approximately an hour at your home to assess the age of mechanical
systems, measure sq~are footage, and otherwise note the condition of the home
prior to remodeling. This is a one-time report for HRA records and incurs no cost to
the homeowner.
5.
Loans will not be considered for work in progress or work completed.
Transformation Loan can only be considered for projects not yet begun.
The
.
6. You will be sent a commitment letter verifying the reservation of funds to be provided
at closing. A copy of the letter may also be provided to your lender. (Wells Fargo
Home Mortgage already has an approved program that allows their mortgage to be
combined with this secondary incentive loan financing.) If you are using some other
form of financing, a closing on the Transformation Loan may occur at City Hall.
7. An HRA staff person will place a sign in your yard that says, "We're Remodeling!"
The sign will be removed upon remodeling completion, or sooner.
8. Upon satisfactory verification of work in progress, or upon completion, payments will
be disbursed at the discretion of the lender or the HRA. If you are obtaining
mortgage financing, your financing will likely be placed in an escrow account held by
the lender. The escrow account will be drawn upon in pro-rated increments
simultaneously as funds are drawn upon from the primary loan to make payments to
the remodeler.
Please be informed ~hat financial data submitted to the HRA for purposes of the loan
application is considered private, according to Minnesota Statute Chapter 13. However,
the fact that you apply for a loan and the final loan amount are considered public data
according to the same statute. .
1212003
.
.
.
General Remodeler And Design Criteria:
The HRA does not recommend any particular remodeler. Selected remodelers must
complete a Remodeler Form, and comply with the general criteria established by the
Richfield HRA. "Sweat equity" cannot be included under the Transformation program.
Summary of Remodeler Reauirements
It is the homeowner's responsibiltiy to check on contractors thoroughly before selecting
them. Your builder should:
1. Demonstrate financial capability by providing a statement from a financial institution of
sufficient construction capital.
2. Possess adequate Builder's Risk, Comprehensive General Liability and Worker's
Compensation insurance coverage.
3. Have a written warranty policy to be shared with the homeowner or written evidence of
commitment to perform warranted repairs required by Minnesota State Statute.
If the remodeler has not participated in the Transformation Homes Program previously, the
HRA will require a Remodeler Form to be completed. A form is attached.
Summary of Housin~ Desh:,"
The HRA will require the following:
1. Each home shall remain a detached single-family dwelling.
2. Garage space may be maintained or expanded, but not reduced.
3. The house building lines, roof lines, doors and window placement should minimize
blank wall mass. House and garage orientation to the street must present a
balanced and pleasing view from all sides.
4. Exterior materials should be low maintenance. Masonite type siding materials are
not acceptable.
5. The site must be fully landscaped, including attractively placed foundation plantings
and complete sod installation, lot line to lot line.
6. Adjoining properties must not be disturbed by the construction process. Construction
planning is important since five foot side yard setbacks limit construction space.
7. The construction process, site grading, and the finished structure must improve or
not have a detrimental impact on storm water drainage patterns in the neighborhood.
Re-working an existing site grade to improve neighborhood drainage may be
requested. If a roof is pitched towards neighboring homes, gutters may need to be
installed to divert storm water, in addition to improved grading.
If you would like to consult with someone regarding any remodeling issues, call the
Remodeling Advisor at 612-861-9772.
H:Cdadmin:Housing:Trans Loan Application 2004.doc
1212003
.....
RICHFIELD
.
MAYOR
MARTIN J, KIRSCH
CITY COUNCIL
JOHN ENGER
SUSAN ROSENBERG
SUZANNE M. SANDAHL
GERTRUDE ULRICH
CITY MANAGER
SAMANTHA OROUNO
.
.
Community Development Department
RICHFIELD REMODELING ADVISOR
Interested in a free "Home Visit"?
The role of the Richfield Remodeling Advisor is to assist Richfield homeowners (or
potential homeowners) with planning for their remodeling project. This entails a
variety of services depending on the specific interests of each homeowner and the
unique nature of their property. It may be helpful to talk to an unbiased expert,
someone with some technical knowledge, before or after receiving bids from
contractors. This is a free service!
Start with an initial telephone conversation to discuss the ideas or the potential
project. Often this results in a home visit, which includes the following:
· Detailed discussion of homeowners' plans, ideas, and needs.
· A walk-through survey to identify improvement needs and expand on the
homeowner's ideas.
· Preparation of general cost estimates relating to the various improvements.
(Costs can vary dramatically, depending on the contractor and the type of
materials used. The estimate range provided by the Remodeling Advisor is
simply for initial planning purposes.)
· Discussion regarding the role of design on the proposed project, and a
determination of whether detailed design assistance will be usefu I.
· Provision of a Remodeling Manual and hand-outs that cover how to select a
contractor and financing options.
· Review of value-added improvements as it relates to future market value.
· Summarization of the home visit with preparation of an Action Plan.
· A follow~up phone call to see if you need any further assistance.
Following the home visit, a follow-up call is made by the advisor to monitor progress
and provide additional assistance where needed. This may include:
· A review of potential improvements and direction in setting priorities.
· Help in analyzing estimates or bids secured.
· Additional home visits with the homeowner and contractor to review proposed
improvements and contracts, if needed.
· Referral to a Design Advisor.
c~;nl Dave'.Sch'a'ffet','''Rich'field "Rem6deling"-Aa"lsoraf612::S-61 '.::gm.
The Urban Hometown
6700 PORTLAND AVENUE, RICHFIELD, MINNESOTA 55423 612.861.9760 FAX: 612.861.8974
www.cLrichflold.mn.us AN EQUAL OPPORTUNITY EMPLOYER
.
.
.
TRANSFORMA liON HOMES APPLlCA liON FORM
General Information:
Name(s) of Owner(s) (as they appear on title)
Present Address
Phone Number(s)
Future Address (if buying to remodel)
Remodeling Information:
Description of improvements to be done
When do you plan on remodeling?
Name of Architect or Designer
Name of Remodeler
Attach a list of contractors if a general contractor is not being used.
Financing Information:
Estimated amount of contract $
Appraised value of property upon completion (if lender financed) $
Name of Lender
Type of financing (second mortgage/refinance/home equity line, etc.)
Anticipated closing date
Source of financing if not lender financed
Requirements for a complete application:
Check off all that apply; provide explanation for those not completed.
A copy of the cost estimate(s) and description of improvements is attached
Building plans are attached (both floor plans and exterior elevations)
Site plan is attached (for additions that require crawl space or foundation)
Ready to schedule a pre-remodeling condition evaluation (arranged by the Richfield HRA)
Please explain if an item is not checked:
Send completed application and attachments to:
Richfield HRA
6700 Portland Avenue South
Richfield, MN 55423
Attention: Pam Bookhout
To the fullest extent permitted by law, the Homeowner agrees to defend, indemnify and hold
harmless the HRA and the City of Richfield, their officers, agents and employees from and against
all claims, los5, damage, costs and expense arising from bodily or personal injury or sickness,
illness, or death of persons or damage to property resulting from or alleged to have resulted from
the Remodeler's work and operations.
'."'Owner
""'Owner
1212003
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.
.
2.
3.
4.
5.
6.
RICHFIELD REMODELING PROGRAM
REMODELER FORM
Business Name:
Phone No.:
Fax No.:
Business Address:
Contact Person:
1.
How many years has your company been in business?
In the past three years, what has been the average number of homes your company has
remodeled per year?
In the past three years, what has been the average remodeling contract price by your
company?
Attach copy of your company warranty policy.
If no written policy exists, please acknowledge that you comply with statutory warranties.
Yes No
You agree that you have the ability, at all times during the term of the Remodeling
Contract, to have and keep in force the following minimum insurance coverages:
COVERAGE:
Workers Compensation
Employer's Liability
Comprehensive General
Independent Contractors
Products/Completed
Contractual Liability
Personal Injury Liability
"XCU" Liability (if applicable)
Broad Form Property
Comprehensive Automobile
for owned, hired, and
automobiles
LIMITS:
Statutory
$300,000 81 & PO
Included
Included
Included
Included
Included
Included
Included
$300,000 81 & PO
You meet Minnesota state licensing requirements. Yes
No
- OVER -
1212003
7.
Please list municipalities in which you have secured remodeling permits
within the past 3.5 years and indicate the name of the City staff person
(building official or other) with whom you had the most contact.
.
1.
2.
3.
8. Provide names, addresses and telephone numbers of five customer
references that we may contact as references.
1.
2.
3.
4.
5.
9. Provide names, addresses and telephone number of three major suppliers or sub-
contractors that we may contact as references.
1.
2.
3.
The information contained on this form may be provided to lenders, homeowners,
and others interested in participating in Richfield Remodeling Programs.
.
By:
Its:
Date:
[H:Housing:Forms:Remform1 ]
.
1212003
.
.
.
HRA Agenda - 09/01/04
7.
Consideration to review a Purchase Ae:reement for acceptance. reiection. or counter-
offer for the property located at 725 West 3 Street.
A. Reference and back!!round:
At the June 14 HRA meeting, the commissioncrs agreed to consider an offcr for the property
locatcd at 725 West 3 Street (corner of Elm and 3 Street.) Real Estate Agent Connie
Marquette, delivered the Purchase Agreement on July 28. Please note item 33. Buyer declines
to have a property inspection performed at Buyer's expense. Purchase "as is". The agent and
seller both noted to me the house needed work.
I checked the 2005 County estimated market value for this homestead parcel: $116,900 Land
$30,000 and building $86,900. The lot size is 66 ft X 165 ft for total of 10,890 sq ft which is a
typical city lot size.
This house was on the HRA list of a few years ago. See attached and note value was $59,100.
* NEW INFORMATION
Sorry about this. On August 5, 2004, I contacted Connie Marquette, the agent, and told her
the HRA rejected the Purchase Agreement in the amount of $250,000 and were not interested.
I requested she pick up the Purchase Agreement which she did.
On August 24, 2004, she submitted a new Purchase Agreement at an purchase price of
$210,000. You will note on page 1. the earnest money and cash do not add up and there is no
decline of a property inspection. Page 4. was from the first offer, note date of July 17,2004
and property "as is".
B. Alternative Action:
1. A motion to accept the Purchase Agreement as presented in the amount of $21 0,000.
2. A motion to reject the Purchase Agreement as presented and not interested.
3. A motion to counter-offer at a price of $ _,,"' subject to an inspection. The
willingness to waive relocation benefits and provide a statement that the property is
either owner occupied or is vacant and is not being rented to any party.
HRA Agenda - 09/01/04
.
c.
Recommendation:
This could be a great fixer-upper with the brick exterior; however, still over-priced. Suggest
inspection first or low-ball counter-offer or let the market play-out and develop housing
program first. HRA needs to be clearer in its message.
D. Supporting Data:
Copy of Purchase Agreement and photo of house.
.
.
2
.3.
124. Seller shall pa
closing date is chan~d, the real est es paid shall, if prorated, be adjusted to the new closing date, Seller warrants taxes due and
payable in the yeardtJ6 iwill b .. FULL- ART.NON- homestead classification. If part or non-homestead classification is circled,
__ - cirr.l" one)__n-
Seller agrees to pay Buyer at closing $
toward the non-homestead real estate taxes. Buyer agrees to pay any remaining balance of non-homestead taxes when they become
due and payable. Buyer shall pay real estate taxes due and payable in the year following closing and thereafter, the payment of which is
not otherwise herein provided. No representations are made concerning ttie amount of subsequent real estate taxes.
POSSESSION: Seller shall deliver possession of the property not later than ';;1/ HOllt:Jj' after closing.
All interest, homeowner association dues, rents, fuel oil, liquid petroleum gas and all charges for city water, city sewer, electricity, and
natural gas shall be prorated between the parties as of date of dosing. Seller agrees to remove ALL DEBRIS AND ALL PERSONAL
PROPERTY NOT INCLUDED HEREIN from the property by possession date.
'1 a~3''''PU CH SE ~G~EMENT
121. Address l\ 1'1 r
122. Page 3 Date. ) If
12ths, ALL, NONE real estate taxes due and payable in the ye~d' :1
-~~._--~------------
12ths, ALL, NONE real estate taxes due and payable in they~D6{1.lfthe
_____~~.___~................n---~~.----... I
125.
126.
127.
128.
129.
130.
131.
132.
133.
134.
ENVIRONMENTAL CONCERNS: To the best of the Seller's knowledge there are no hazardous substances, or underground storage
tanks, except herein noted:
141. SELLER I BUYER AGREES TO PROVIDE,IF REQUIRED BYTHE TERMS OF THIS PURCHASE AGREEMENT OR BY GOVERNIN
_._---(clrcle o"e)--.-
159.
AUTHORITY ANDIOR LENDER, A LICENSED tNSPECTOR'S SEPTIC SYSTEM INSPECTION REPORT OR NOTICE INDICATING I
THE SYSTEM COMPLIES WITH APPLICABLE REGULATIONS. NOTICE: A VALID CERTIFICATE OF COMPLIANCE FOR TH
SYSTEM MAY SATISFY THIS OBLIGATION. NOTHING IN LINES 141 TO 144 SHALL OBLIGATE SELLER TO UPGRADE, REPAIR 0
REPLACE THE SEPTIC SYSTEM UNLESS OTHERWISE AGREED TO IN THIS PURCHASE AGREEMENT
BUYER HAS RECEIVED THE WELL DISCLOSURE STATEMENT OR A STATEMENT THAT NO WELL EXtSTS ON THE PROPERTY
AND A SEPTIC SYSTEM DISCLOSURE STATEMENT OR A STATEMENT THAT NO SEPTIC SYSTEM EXISTS ON OR SERVES TH
PROPERTY, AS REQUIRED BY MINNESOTA STATUTES.
SELLER WARRANTS THAT CENTRAL AIR CONDITIONING, HEATING, PLUMBING AND WIRING SYSTEMS USED AND LOCATED ON
SAID PROPERTY WILL BE IN WORKING ORDER ON DATE OF CLOSING, EXCEPT AS NOTED IN THIS AGREEMENT
BUYER HAS THE RIGHT TO A WALK-THROUGH REVIEW OF THE PROPERTY PRIOR TO CLOSING TO ESTABLISH THAT TH
PROPERTY IS IN SUBSTANTIALLY THE SAME CONDITION AS OF THE DATE OF PURCHASE AGREEMENT. SELLER AGREE
TO NOTIFY BUYER IMMEDIATELY IN WRITING OF ANY SUBSTANTIVE CHANGES FROM ANY PRtOR REPRESENTATION
REGARDING THE PHYSICAL CONDITION OF THE PROPERTY.
BUYER ACKNOWLEDGES THAT NO ORAL REPRESENTATIONS HAVE BEEN MADE REGARDING POSSIBLE PROBLEMS 0
WATER IN BASEMENT, OR DAMAGE CAUSED BY WATER OR ICE BUILD~UP ON ROOF OF THE PROPERTY AND BUYER RELlE
SOLELY IN THAT REGARD ON THE FOLLOWING STATEME~:~R:
SELLER ~~.!~~AD A WET BASEMENT AND HA~ HAS NO AD ROOF, WALL OR CEILING DAMAGE CNJSED BY WATE
OR ICE BUILD~UP. BUYER ~'~~_(~Of~OIN~TPCEIVED A SELLER'S PROPERTY DISCLOSURE STATEMENT.
BUYER HAS RECEIVED THE INSPECTION REPORTS, IF REQUIRED BY MUNICIPALITY.
142.
143.
144.
145.
146.
147.
148.
149.
150.
151.
152.
153.
154.
155.
156.
157.
158.
160.
NOTI
is Seller's Agent Buyer's Agent I Dual Agent I Facilitator
. __...____._-{cin;l.. on..)
is Seller's Agent! Buyer's Agent! Dual Agent! Facilitator
_.__..m._.._--._-m(ClrcI.. on") m____.....
(Licensee)
165.
. 166.
167.
168.
169.
170.
171.
172.
(Company)
THIS NOTICE DOES NOT SATISFY MINNESOTA STATUTORY AGENCY DISCLOSURE REQUIREMENTS.
DUAL AGENCY REPRESENTATION
PLE,iE CHECK ~ OF THE FOLLOWING SELECTIONS
rV Dual Agency representation DOES NOT apply in this transaction. Disregard lines 170-183.
o Dual Agency representation DOES apply in this transaction. Complete the disclosure in lines 171-183,
Broker represents both the Seller(s) and the Buyer(s) of the property involved in Illis transaction, which creates a dual agency. Tlli
means that Broker and its salespersons owe fiduciary duties to both Seller(s) and Buyer(s). Because tile parties may have conflictin
.. . ~__._u __-' an n~I",,~,,""nnq <IrA nrohibiled from advocating exclusively for either party. Broker cannol act as a dual agent in thi
_ _ .. .I._~_HI..........._ .h~.'
. 63.
64.
65,
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67.
68.
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. 85.
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. 107.
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113.
PURCHASE AGREEMENT
62. Page 2
TITLE & EXAMINATION: Within a reasonable time after acceptance of this Agreement, Seller shall provide
evidence of tille, which shall include proper searches covering bankruptcies, state and federal judgments and liens,
and levied and pending Special Assessments to Buyer or Buyer's designaled tille service Provider, as follows:
If property is abstract, Seller shall provide either: (1) a commitment for an owner's policy of title insurance on a current
ALTA form issued by an insurer licensed to write title insurance in Minnesota. Seller shall pay the cost of an owner's policy including the
entire premium, tilie examination fee and the costs of evidence of title for such title insurance policy if no lenders policy is obtained; or only
the additional cost of obtaining a simultaneously issued owner's policy if a lender's policy is obtained, (Buyer
shall pay the premium and the tille examination fee for the lender's policy); or (2) an abstract of title certified to date,
Seller shall pay for all abstracting fees and surrender any abstract in Seller's possession or control to Buyer at closing.
If property is Torrens, Seller shall provide, at Buyer's option and request, either (1) a Registered Property Abstract
(RPA) certified to date; or (2) a commitment for an owner's policy of tille insurance on a current ALTA form issued by
an insurer licensed to write tille insurance in Minnesota. Seller shall be responsible to pay, under either option, only
those costs necessary to prepare the RPA or commitment. Buyer shall, at buyer's option, pay for either the Allorney's
Opinion or the title insurance premium and examination fee.
Seller shall use Seller's best efforts to provide marketable tille by the date of closing. In the event Seller has not
provided marketable tille by the date of closing, Seller shall have an additional 30 days to make tille marketable or, in
the alternative, Buyer may waive tille defects by written notice to the Seller. In addition to the 30 day extension,
Buyer and Seller may by mutual agreement further extend the Closing date. Lacking such extension, either party
may declare this Purchase Agreement null and void; neither party shall be liable for damages hereunder to the other
and earnest money shall be refunded to Buyer; Buyer and Seller shall immediately sign a cancellation of Purchase
Agreement.
SUBDIVISION OF LAND: If this sale constitutes or requires a subdivision of land owned by Seller, Seller shall pay
all subdivision expenses and obtain all necessary governmental approvals. Seller warrants Ihe legal description of
the real property to be conveyed has been or will be approved for recording as of the date of closing. Seller warrants
that the buildings are or will be constructed entirely within the boundary lines of the property. Seller warrants
that there is a right of access to the property from a public right of way. These warranties shall survive the delivery of
the deed or contract for deed.
Seller warrants that prior to the closing, payment in full will have been made for all labor, malerials, machinery,
fixtures or tools furnished within the 120 days immediately preceding the closing in connection with construction,
alteration or repair of any structure on or improvemenlto the property,
Seller warrants that Seller has not received any notice from any governmental authority as to condemnation
proceedings, violation of any law, ordinance or regulation, If the property is subject to restrictive covenants, Seller
warrants that Seller has not received any notice from any person or authority as to a breach of the covenants. Any
such notices received by Seller will be provided to Buyer immediately.
Seller agrees 10 allow reasonable access to the property for performance of any surveys or inspections agreed to herein.
RISK OF LOSS: If there is any loss or damage to the property between the date hereof and the date of closing, for any reason induding
fire, vandalism, flood, earthquake or act of God, the risk of loss shall be on Seller. If the property is destroyed
or substantially damaged before the closing date, this Purchase Agreement shall become null and void, at
Buyer's option, and earnest money shall be refunded to Buyer; Buyer and Seller shall immediately sign a
cancellation of Purchase Agreement.
TIME OF ESSENCE: Time is of the essence in this Purchase Agreement.
ENTIRE AGREEMENT: This Purchase Agreement, any allached exhibits and any addenda or amendments signed
by the parties, shall constitute the entire agreement between Seller and Buyer, and supercedes any other wrillen or
oral agreements between Seller and Buyer. This Purchase Agreement can be modified or canceled only in writing signed by
Seller and Buyer or by operation of law. All monetary sums are deemed to be United States currency for purposes of this agreement.
Buyer or seller may be required to pay certain closing costs which may effectively reduce the proceeds from the sale or increase Ule cash
outlay at closing,
ACCEPTANCE: Buyer understands and agrees that this Purchase Agreement is subjeclto acceptance by Seller in writing, The delivery
of all papers and monies shall be made at the lis ling broker's office.
DEFAULT: If Buyer defaults in any of the agreements herein, Seller may terminate this Purchase Agreement, and payments made
hereunder may be retained by Seller as liquidated damages. If this Purchase Agreement is not so
.
PURCHASE AGREEMENT
This form approved by the Minnesota Associallon of
REALTORS@, which disclaims any liability
arising out of use or misuse of this form.
@ 2003 Minnesota Association of REALTORS@, Edina, MN
1. Date :?// 7/d-Oc) y'
.
/) 2. Page 1 of
RECEIVEDO.'/)~ftt'::.- '0'CU'~-R-J e VJ?~ s.:E~ {}oZA'd..../
3.
4.
5.
6.
the sum of
by CHECK I CASH I NOTE as earnest
~____.r_____~r_(drcle one)--,"r----~----~
~,..d..;> _ O?1. ---.... Dollars ($ ~6v.!/ t..'/ t, )
ney to be deposited upon ~cceptance of Purchase Agreement by all parties, on or
7.
B.
9.
10
11.
12.
13.
14.
15.
16.
, State of Minnesota,
17.
18.
19.
20.
21.
including all fixtures on the following property, if any, owned by Seller and used and located on said property, including but not limited to: garden bulbs,
plants, shrubs and trees; storm sash, storm doors, screens and awnings; window shades, blinds, traverse and curtain and drapery rods; attached
lighting fixtures and bulbs; plumbing fixtures, water heater, heating plants (with any burners, tanks, stokers and other equipment used in
connection therewith), built-in air-conditioning equipment, electronic air filler, water softener ~~~~.~_.~.(~rc~~o~eEf:?~9buill-in
humidifier and dehumidifier. liquid gas tank and controls (if the property of Seller), sump pump; allached television antenna, cable TV jacks and
wiring; BUILT.INS: dishwashers, garbage disposals, trash compactors, ovens, cook-top stoves, microwave ovens, hood fans, intercoms;
ATTACHED: carpeting; mirrors; garage door openers and all controls; smoke detectors; fireplace screens, doors and heaUlators; AND: the following
personal property: .
.. ~. (L
. . aJL9'--""'oh p,operty":'! h", IhI, d,,:,greed 10 .,11 10 Boye, 1m ,om of ($ -6- / a e1</ tl · '" LJ
4. _~4-/7~L'--/> LA"" ~ r:t:Xc//J~) - -=;f-;jlJ~
..sf
25. which B~r a~s to e.ay in the following manner: earnest ey of $
26. and $ Q{ ~ \. ')^(::..J I)" () () cash on the date of closing, and
27. the balance of $ ("J by financing in accordanye;.vith tl)e attached Addendum:
28. Conventional I FHA I DVA I Assumption I Contract for Deed I purchase Money Mortgage I Other: { . .ffJ.A/
_...__.....___...----..-....--...--....--...-....--...--...--..----(c"de atlthat apply)._._..-...__...-...-...-....-...-._--..~
29. This Purchase Agreement ~~(~ubJect to a Contingency Addendum for sale of Buyer's property. (If answer Is 15, see attached Addendum.)
30. (If answer Is IS NOT, the closing of Buyer's property, if any, may still affect Buyer's ability to obtain financing, If financing Is applicable.)
31. This Purchase Agreement !_~~Ublect to cancellation of a previously written Purchase Agreement dated
32. (If answer is IS, said cancellation shall be obtained no later than /1/,/1 ,20 -' If said cancellation is not obtained
33. by said date, this Purchase Agreement shall become null and void. Buyer and Seller shall immediately sign a Cancellation of purchase Agreement
34. directing all earnest money paid hereunder 10 be refunded to Buyer.)
)
Dollars,
35. This Purchase Agreement IS ~Ubject to a Vacant Land Addendum. (If answer is 15, see allached Addendum.)
m--.(circIB one)-~.----
36. Buyer has been made aware of the availability of property inspections. Buyer Elects I Declines to have a property inspection performed at Buyer'S expense.
_~__~___(cjfcle one)m_-~~-
37. This Purchase Agreement IS I 15 NOT subject to an Inspecllon Addendum. (If answer is IS, see allached Addendum.)
...---..(c/rcle one)-..-----
38. DEED/MARKETABLE TITLE' Upo" perlo,m,"oe by Boye" Selle' ,hall den..., a W.",udy Deed 0' Dthe" /1,q,R k .tfl) 11 Ct: 0 eed
~............-_____..._..~__.ft___~..__._._-_....-~r(c;lrcle one)-&..--....--....r-~...--~-..--------~--~-_..--.---~_._--
39.
40.
41.
.~:
44.
45.
46.
47.
joined in by spouse, if any, conveying marketable Iille, subject to:
(A) building and zoning laws. ordinances, state and federal regulations; (B) restrictions relating to use or improvement of the
property without effective forfeiture provisions; (C) reservation of any mineral rights by the State of Minnesota; (D) utility and
drainage easements which do not interfere with existing improvements; (E) rights of tenants as follows (unless specified, not
subject to tenancies):
(F) others (must be specifie .
BUYER SHALL PAY SELLER SHALL PA n date 01 closing any deferred real estate taxes (e.g., Green Acres, etc.) or special
(circle
assessments, payment of which is required as a result 01 the closing of this sale.
BUYER AND SELLER SHALL PRORATE AS OF THE DATE OF CLOSING
~________.-_..---___(Circl8me)
of special assessments cert~eal estate taxes due and payable in the year of closing. .
__ ..".,. ruV ~ rl""" "I doslnaall other special assessments levied as- of the date of thiS Agreement.
4B.
.
186.
167.
188.
189.
190. OTHER
191.
192.
193.
.197.
198.
199.
200.
. 207.
.. (1 eURCHASE AGREEMENT
1B4Add"" 7 a,~ :1" ~ ~+
185. Page 4 Date: i d ~
REVIEW THE ARBITRATION DISCLOSURE AN
BUYER(S)
BUYER(S)
~
194.
195_ Allached are other addenda which are made a part of this Purchase Agreement. (Enter total number of pages of this Purchase
196. Agreement, including addenda, on line 2 of page 1.)
I, the owner of the property, accept this Agreement and
authorize the IlIitlng broker to withdraw said property from
the market, unless Instructed otherwise In writing.
I agree to purchase the property for the price and In accordance
with the terms and conditions set forth above.
I have reviewed all pages of this Purchase Agreement.
201.
(Buyer's Signature)
x
(Date)
202.
0'.,',5,,'''0'') I
2{n((V-\' (\ 1;( ri-le
(Seller's Printed Name)
X
(Buyer's Printed Name)
203.
~
(Social Security Number" optional) (Marital Status)
X ~/LJ A /tJI
)Jur/~- /
X
(Buyer's Printed Name)
X
(Social Security Number" optional)
(Marital Status)
X
204.
7"' 7Y:-o/ X
(Date) (Buyer's Signature)
(Date)
205.
X
/J
/7~ b-er I
(Seller's Printed Name)
r(\(\
(Marital Status)
X
(Social Security Number - optional)
206. X
(Social Security Number. optional)
(Marital Status)
FINAL ACCEPT ANCE DATE
2.08.
209.
THIS IS A lEGALLY BINDING CONTRACT BETWEEN BUYERS AND SELLERS.
IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL.
.
Monticello H RA
505 Walnut Avenue, Suite 1
Monticello, MN 55362
August 10,2004
MC100-01
General
Invoice # 22687
Professional Services
Hours Amount
7/14/2004 MTR
7/15/2004 MTR
7/23/2004 ED
Work on paygo notes
Paygo notes
P&I schedules for internalloans-TIF reporting, general TIF reporting
questions
0.50
0.75
2.00
62.50
93.75
250.00
Total Due This Month:
3.25 $406.25
Status of Account:
Current
$40625
30 Days
$0.00
".~0..Q.9Y~_'___~~"'_"_M~0 Days
$0.00 $0.00
120+ Days
$0.00
Total
$406.25
.
OK T() PA'Y? L)i!,.t~
Cod e: #Jl. I '3 . l{ ~ '3 0 (
. ~''''._'~'~''~..,~-......~~
Initial ~
......__m.~..____.______~.".~~
...".-----.....-;;;:;;;;:;;:::::.;;.J
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1,.-,-,.) r. .--.-----............
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t' I 1\ 1 ~ r"1
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--~-~. ~
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PLEASE KEEP WHITE COPY FOR YOUR FILE AND REMIT PINK COPY WITH PA YMENT TO:
.
.
EHLERS
& ASSOCIATES INC
3060 Centre Pointe Drive
Roseville, MN 55113-1105
651.697.8500
.
.
.
HRA Agenda - 09/01/04
9.
Consideration of Executive Director's Reoort.
a) TIF management items - Within the last month I researched invoices associated with
administrative cost for establishment of TIF District and preparation of Contracts. Attached is
a cover letter to Developers Hans Hagen, Mike Cyr, and Barry Fluth and a summary of their
respective administrative costs noting either a balance due or refund amount.
Decertification and dose-out ofTIF Districts - I summarized and faxed to Mark Ruff for
input information relative to five Economic TIF District for decertification and/or dose-out in
2004. Tfthe five districts are dosed, the HRA would reimbursement the County about
$250,000.
Front Porch - As of August 2004, 11 of the 12 town homes within Vine Place have received
certificate of occupancies. By December 2004 per the contract, the developer agreed to the
completion of 18 units. This is by the pay-as-you-go finance method.
b) Steve Johnson Preliminary Development Agreement - Since the agreement states a
developer must request reimbursement of the deposit, no letter has been prepared to Mr.
Johnson. The only invoice for the Block 52 project was $500 from Kennedy & Graven.
Independent of the administrative costs, the HRA paid about $10,000 for the study prepared
by the McComb Group. In addition to staff time, the city engineer and planners put time into
proposed Walgreen's project. I met with Mr. Johnson on August 20, he was inquiring ahout
the use ofTIF for Blocks 52 and 35. He was informed, the liRA would be happy to look at
the use ofTIF provided the project meets the "but for" test and redevelopment requirements
and is a viable project. A new district would be established which takes about 8 weeks.
c) Landmark Square II - Commercial - Mr. Fluth continues to work on this project. Has
checked in with Planning Department. Mayor may not appear before the HRA in September.
d) TOLD Development - I left a voice mail with Bob Cunningham for an update on a
Walgreen's project in Monticello.
c) Existing Muller Theater - Have not heard from Mike Muller as to plans for the existing
theater on Broadway. Target date for opening of the new 14 screen theater on Highway 25
South is November/December.
f) Industriallcads -
_ Site selection for the larger distribution centers are still active.
_ 60,000 sq ft manufacturer, 25 jobs at average of $17.50 per hour. Submitted request for
information in June. According to EDAM, for now the company is pursuing sites with JOBZ
designation from Tsanti County to the Iron Range. May not pick one of those eight sites.
_ 10,000 sq ft industrial user - looking to build and room for expansion. Not able to find a 2-
acre industrial site in Monticello. Two acre site north of lRTI is sold, three acre to its north has
purchase agreement pending. Checked with Standard Iron and Westlund Distribution as to
interest to subdivide undeveloped five-acre parcels. Either was interested at this time. Otter
Creek Crossing parcel does not fit their time frame.
HRA Agenda - 09/01/04
.
.
_ 25,000-30,000 sq ft distribution center out of Fridley ~ I believe is working with Standard
Iron for purchase with lease back to Standard Iron for office space.
_ 51,000 sq ft industrial/office condominium facility - 2,400 to 2,700 sq ft bays preferably for
sale. Time frame 2005 or 2006. Marketed Monticello Commerce Center, Otter Creek
Crossing, and Lauring Hillside.
_ Relocation of local distribution company - A proposal for a 60,000 sq ft facility has been
assembled for this relocation project. Timing will be a concern and the proposal includes both
Monticello Commerce Center and Otter Creek Crossing. I expect the 35-acres designated for
immediate purchase by the city will be determined this week by WSB so I can meet with this
company. Big Lake has presented oiTer.
g) Purchase of Otto Creek Crossing - HRA Commissioner Frie, Wolfsteller, Koropchak,
WSB, and Northwest Associates met with Chadwick and Bowers on August 18. Target date
for closing is September 8 and dosing on Rask property September 15. Bret Weiss and I
drove the site after the last meeting, we did not see the seeded area of the completed
redamation area as indicated by Bowers. The Purchase Agreement states at the sole expense
of the seller, the seller shall supply adequate fill material and will grade the mining site pursuant
to the grading plan pursuant to the "End Use Plan" on iile at Wright County. A minimum of 935
feet elevation. At the Council meeting of August 23, the Council approved a joint resolution
requesting annexation of the remaining area of Otter Creek Crossing induding proposed city
owned property. Request made by Chadwick.
h) Industrial Banquet with Govenor Pawlenty - Gratis tickets for two sent to husinesses who
made large investment in City: WSI, Production Stamping, and Westlund Distributing. Wright
County Golf Outing at Wild Marsh September 8: City team of four paid hy Northwest
Associates and $235 from City for Silver sponsor. Tee box presentation will be $50 cash give
away for closest guess to a Monticello economic development trivia question.
i) Copy of response letter to United Properties.
j) Letter from Conworth, Inc. - Appears to me a way for Conworth to make money. Changes
are only proposed, I recommend wait and see what changes and then decide if applicahle to
Monticello.
k) TCDC - Attached is a copy of the wage and job report submitted hy Twin City Die
Castings. Average wage is $18.59 ph and number of jobs is 44.
.
2
q~
August 16, 2004
MONTlCELW
Mr. Hans Hagen
Hans Hagen Homes
941 NE Hillwind Road
Suite 300
Fridley, MN 55432
RE: Contract for Privatc Development by and among Hans Hagen Homes, Inc. and Housing and
Redevelopment Authority in and for the City of Monticello and City of Monticello, Minnesota.,
dated April 22, 2002.
Dear Hans:
.
Per the Contract dated April 22, 2002, ARTICLE 111., Section 3.6., the developer agreed to pay for
"administrative costs" incurrcd by the Authority. On April 12, 2001, the developer exccuted the
Preliminary Development Agreement and deposited $5,000. Attached are copies ofinvoices documenting
the out-of-pocket costs incurred by the Authority.
Please remit to the Monticello Housing and Redevelopment Authority, Attn: Ollie Koropchak, 505 Walnut
Street, Suite 1, Monticello, MN 55362, the amount of administrative over-run costs. The amount due is
$909.72.
Should you have any questions, please call me at 763-271-3208. Thanks for taking care of this matter.
Sincerely,
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO
G~ \~CI\U~~
Ollie Koropchak
Executive Director
Attachments
c: TlF District No. 1-22 - Hagen File
HRA commissioners
.
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) 295-3] 70' Fax: (763) 271-3272
.
.
.
Deposit, April 12, 2001
TOTAL REVENUE
HANS HAGEN HOMES, INe.
RIVER WALK REDEVELOPMENT
AllGUST 16,2004
Expenses:
Kennedy & Graven, Legal Consultant
December 2001
January 2002
February 2002
April 2002
April 2002
May 2002
May 2002
June 2002
July 2002
August 2002
TOTAL EXPENSES
$ 2,497.50
$ 1,485.00
$ 255.00
$ 133.50
$ 140.00
$ 182.00
$ 165.00
$ 410.00
$ 564.50
$ 77.22
OVER~RUN COSTS, August 16, 2004
$5,000.00
$5,000.00
$5,909.72
$ 909.72
C\tC\
August 13, 2004
--
MONTICELLO
Mr. Mike Cyr
Front Porch Associates, L TD
Box 1338
Monticello, MN 55362
RE: Contract f()f Private Development by and among Front Porch Associates, LTD. and Housing and
Redevelopment Authority in and for the City of Monticello and City of Monticello, Minncsota.,
dated May 1,2002.
Dear Mikc:
Per thc Contract dated May 1,2002, ARTICLE ilL, Section 3.4., the developer agrced to pay t()r
"administrative costs" incurred by the Authority. On January 29, 2002, the devcloper cxecutcd the
Preliminary Development Agrecment and deposited $5,000. Attached are copies of invoiccs documcnting
the out-of.pockct costs incurred by thc Authority.
.
Pleasc remit to the Monticello Housing and Redcvelopment Authority, Attn: Ollie Koropchak, 505 Walnut
Street, Suite I, Monticcllo, MN 55362, the amount of administrative over-run costs. Thc amount due is
$2,045.50.
Should you have any questions, please call me at 763-271-3208. Thanks for taking care of this matter.
Sincerely,
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO
O -~
~ ~O(L
Ollie Koropchak
Executive Director
A ttachmcnts
c: TIF District No. 1-29 File
lIRA commissioncrs
.
Monticello City Hall, 505 Walnut Street, Suite I, Montil:e1lo, MN 55362-8831 . (763) 295-2711 . Fax: (763) 295-4404
DUke of Publil: Works, 909 Golf Course Rd., Monticello, MN 55362 . (763) 295-3170 · Fax: (763) 271-3272
.
.
.
FRONT PORCH ASSOCIATES, L TD
VINE PLACE REDEVELOPMENT
AUGUST 13,2004
Deposit, January 29,2002
TOTAL REVENUE
Expenses:
Kennedy & Graven, Legal Consultant
February, 2002
March, 2002
April, 2002
June, 2002
Subtotal
$ 1,395,00
$ 115,50
$ 495.00
$ 540.00
$ 2,545.50
Elhers & Associates, Financial Consultants
April, 2002
Subtotal
$ 4,500,00
$ 4,500.00
TOTAL EXPENSES
OVER-RUN COSTS, August 13,2004
$5,000.00
$5,000.00
$7,045,50
$ 2,045,50
.
.
C\~
August 12, 2004
--
MONTICELLO
Mr. Barry Fluth
Master's Fifth Avenue
204 Locust Street, Suite 209
Monticello, MN 55362
RE: Preliminary Development Agreement between the HRA and Master's Fifth Avenue.
Dear Barry:
The HRA and Master's Fifth Avenue entered into a Preliminary Development Agreement on August
28,2003, for the proposed redevelopment of three substandard single family homes and construction
of II total housing units. With a remaining balance of $1,992 for administrative costs carried-over
from Landmark Square I - Amoco project, the developer deposited an additional $3,000 at the time
the Preliminary Agreement was executed.
On June 11,2004, the developer decided to not enter into the Contract for Private Development
associated with the proposed II unit housing project. Therefore and according to the Agreement,
documentation of the administrative costs incurred by the HRA for Landmark Square II, Housing are
attached. You will note, there is a remaining balance of$61 which can be applied toward the $7,500
deposit required upon execution of the Preliminary Development Agreement for the proposed
Landmark Square II, Commercial project or the remaining balance can be refunded to you.
Should you have any questions, please call me at 763-271-3208.
[lOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO
O~ \<'. l)n
'- . 0\ ~ .~
Ollie Koropchak
Executive Director
Attachments
c:
TIF 1-22 !"lI1dmark Square [[ - I lousing File
Monticello City Hall, 50S Walnut Street, Suite I, Monticello, MN 55362-1-\1-\3 I . (76:1) 2')5.2711 . Fax:; (763) 2')5.4404
Of rice of Puhlic Works, ()O') Golf Course R,L, Monticello, MN 55302 . (763) 295-3170. Pax:: (763) 271-3272
.
.
.
MASTER'S FIFTH AVENUE
LANDMARK SQUARE II- HOUSING
AUGUST 12, 2004
Remaining Balance Landmark Square I R Amoco
June 20, 2003
Deposit, Landmark Square II - Housing
August 28, 2003
TOTAL REVENUE
Expenses:
Kennedy & Graven, Legal Consultant
October 2003
November 2003
December 2003
January 2004
February 2004
May 2004
June 2004
June 2004
Subtotal
Elhers & Associates, Financial Consultants
September 2003
Subtotal
TOTAL EXPENSES
$ 183.75
1,916.25
140.00
549.00
307.00
171.00
1,134.00
405.00
$ 4,806.00
$ 125.00
$ 125.00
$1,992.00
$3,000.00
$4,992.00
$4,931.00
ENDING BALANCE, August 12,2004 $ 61.00
(Can to applied toward deposit for Landmark Square II-Commercial or refunded)
~
)1 "',.
C\~
August 11, 2004
--
MONTICELLO
Mr. George 1. Burkards
United Properties
3500 Wcst 80th Street
Minneapolis, MN 55431
Dear George:
Thank for your letter of Junc 25, 2004, expressing the interest of United Properties to bc involved with
thc City of Monticello relative to the market, development, or acquisition of Otter Crcek Crossing.
.
United Properties success stories are well-known to the City of Monticello and we appreciate your
interest to partner with the City. However, after discussion and feedback from Administrator
Wolfsteller, the Housing and Redevelopmcnt Authority, and the Industrial Development Committee, all
parties agrced to schedule a meeting with United Properties, at this time, is premature.
In the meantime, George, let's keep the lines of communication open for potcntial development
opportunities.
Sincerely,
CITY OF MONTICELLO
a~ ~tI\C)~~~
Ollie Koropchak
Executive Director
c:
Administrator WolfstelIer
Mayor Thielen
HRAV
IDe
.
Monticello City Hall, 505 Walnut Street, Suite I, Monticello, MN 55362-8831' (763) 295-2711 . Fax: (763) 295-4404
Offiee of Public Works, 909 Golf Course Rd., Monticello, MN 55362' (763) 295-3]70' Fax: (763) 271-3272
.
Relocation
0\;)
Conworth, Inc.
4725 Excelsior Boulevard
Suite #200
Minneapolis, MN 55416
Phone (952) 929-0044
Fax (952) 929-0568
Toll Free 1-877-805-1575
July 28, 2004
Ollie Koropchak
Executive Director
Monticello HRA
505 Walnut Street, Suite 1
Monticello, MN 55362-8831
Subject: Uniform Relocation Act Changes
Dear Ms. Koropchak:
Are you aware that there are big changes being proposed to The Uniform Relocation Act?
These changes will effect how you budget and administer your acquisition and relocation
projects. At this time, these changes are "proposed." There will most certainly be some
changes made very soon. Conworth, Inc. would like to help you be prepared for these
changes.
Conworth, Inc. would like to work with you to develop a relocation policy and related
publications that incorporate these changes and that would be specifically tailored to your
community. Every agency is obligated to follow the Uniform Relocation Act. There is a
broad interpretation of how the regulations are to be applied. Most agencies have their
own set of existing policies and procedures. This is O.K. The Uniform Act is meant to
ensure a minimum level of uniform treatment to those affected by an acquisition project.
Many local agencies elect to follow accepted MN/DOT or HUD guidelines with respect
to implementation of the Uniform Act. Each local government agency can develop its
own policies and procedures to implement the Uniform Act. The important thing is that
the minimum criteria are met. Conworth, Inc. would like to assist you in the
development and implementation of your relocation assistance policy.
Conworth, Inc. would also like to offer you the opportunity to hear about these proposed
changes. We would be happy to meet with you and your staff to explain how these
proposed changes may impact your current and future projects. When the changes are
actually made, we can then work with you to discuss how the actual changes will affect
your agency.
ACQUISITION AND RELOCATION
.
.
.
Ollie Koropchak
July 28, 2004
Page 2
If you have any questions, or would like to meet with us, please contact me at
952-929-0044 or email me at khelvey@conworth,com or visit us on the web at
www.Conworth.com.
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Vice presiient of Marketing
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