EDA Agenda 03-11-2009e
AGENDA
CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
Wednesday, March 11, 2009
6:00 p.m.
Mississippi Room - 505 Walnut Street, Monticello, MN
Commissioners: President Bill Demeules, Vice President Dan Frie, Treasurer Bill Tapper, Bill Fair, Bob
Viering, and Council members
Staff: EDA Executive Director Megan Barnett
1. Call to Order
2. Approve Minutes: January 14, 2009
3. Consideration of additional agenda items
4. Approval of the EDA Invoices
5. Public Hearing and adoption of Resolution No. establishing a Business Subsidy
Policy
6. Recommend the City Council approve the adoption of Business Subsidy Criteria related to: Tax
Increment Financing, Greater Monticello Enterprise Fund, and Monticello Small Cities Economic
Development Set-aside Revolving Loan Fund
7. Recommend the City enter into a Listing Agreement with Nelson Realty
8. Report of committees: Higher Education Committee, Marketing, Housing, Fiber Optics
9. Report of the Executive Director
General
IEDC Update
Business Retention
Business Initiative
Housing Initiatives
Informational handouts
Future Agenda items
10. Adjournment.
MINUTES
CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
Wednesday, January 14, 2009
6:OOpm
1. Call to Order:
Chairman Demeules called the meeting to order and declared a quorum at 6:OOpm.
Roll Call:
The following Commissioners were present:
Chair Bill Demeules
Vice President Dan Frie
Treasurer Bill Tapper
Commissioner Bill Fair
Council Member Brian Stumpf
Council Member Tom Perrault
Absent:
Commissioner Bob Viering
Also present Executive Director Megan Barnett and Finance Director Tom Kelly
2. Approve minutes:
MOTION BY COMMISSIONER TAPPER SECONDED BY FAIR TO APPROVE THE
JANUARY 14, 2009 MINUTES. ABSTAINED: PERRAULT AND STUMPF. MOTION
CARRIED. 4-0
3. Consideration of additional agenda items: none
4. Approval of the EDA Invoices:
Director Barnett added a Lamar invoice related to the final billboard payment.
Commissioner Tapper questioned the $370 Lamar invoice. Director Barnett stated it was for
the final few days in December for the billboard.
Commissioner Tapper questioned a WSB invoice. Director Barnett stated the City Engineer
provided a brief description as to what work the invoice covered.
Commissioner Tapper questioned Ehler's invoice. Barnett stated Ehlers completed their
portion of their project and the remaining balance will come to the EDA at a future meeting.
Commissioner Tapper questioned a $413.00 Ehlers invoice. Barnett stated the invoice was
related to meeting with a developer looking for TIF assistance.
Commissioner Tapper questioned the payment to Chadwick. Barnett clarified the payment is
for the contract for deed piece located south of the city owned industrial park.
MOTION BY COMMISSIONER FRIE SECONDED BY TAPPER TO APPROVE EDA
INVOICES. MOTION CARRIED. 7-0
5. Request to utilize funds from the Transformation Loan Program:
Director Barnett reviewed a request staff received from a citizen to utilize the Transformation
Loan to fix up a house she owns in Monticello but does not personally occupy the home. The
residence was purchased for the propose of renting the home.
Commissioner Fair stated that the Transformation Loan clearly stated that in order to utilize
the Transformation Loan funds the applicant had to own the residence and a minimum
$30,000 improvement cost was required. These are hard and fast rules not guidelines.
Commissioner Frie stated that the loan also established that an owner had to live in the
residence for at least five years.
Commissioners Frie and Fair provided additional history on the inception of the
Transformation Loan. The Transformation Loan was established specifically for owner
occupied residents.
Commissioner Frie stated that due to the change in the economy it might be timely to look at
modifying the criteria to include rental under certain circumstances.
Commissioner Fair stated he would want to discuss adding rental as an option in detail in
order to ensure the criteria is complete.
MOTION BY FAIR DIRECTING STAFF TO PLACE THE TRANSFORMATION LOAN
PROGRAM DISCUSSION ON THE FEBRUARY AGENDA TO CONSIDER OTHER
OPTIONS FOR UTILIZING THE FUNDS SECONDED BY FRIE. MOTION CARRIED. 7-
0.
Councilmember Stumpf questioned if the EDA's intention is to allow for rental properties to
apply for Transformation Loan funds. Commission Fair stated he wanted the EDA to review
the option at a future meeting.
6. Neighborhood Stabilization Program:
MOTION BY FAIR TO ENTER INTO AN AGREEMENT WITH CENTRAL MN
HOUSING PARTNERSHIP TO COMPLETE THE APPLICATION AND ADMINISTER
THE NSP GRANT PROGRAM SECONDED BY FRIE. MOTION CARRIED 6.0
(Commissioner Frie left the meeting)
7. Redevelopment ideas for the recently purchased property located at 413 4th Street:
Director Barnett stated the EDA recently purchased an underutilized residential property
located at 413 4th Street. Staff is requesting the EDA provide direction regarding the desired
ultimate use for the property.
Commissioner Fair suggested making the lot available for Habitat for Humanity. The house
is not in good condition and should be demolished.
Councilmember Stumpf stated he did not want the City or the EDA to make money on the
property. He desired to see the City demolish the existing house and put it back on the market
for private.
Stumpf questioned if staff is proposing to utilize NSP funds to demolish the house. Director
Barnett stated demolishing the subject home was included in the action plan in the NSP
application. Mr. Stumpf questioned if this was a good idea. Barnett stated that NSP funds are
intended to be utilized for homes that were foreclosed upon, which this house was clearly
qualifies.
The consensus of the EDA is the house needs to be demolished. They stated staff will need to
complete additional research on funding sources to complete the necessary work. Habitat for
Humanity and private market options will also need to be further reviewed as options for end
projects on the subject property.
8. Sub-Committee Policy:
Director Barnett reviewed the proposed sub-committee policy. Barnett stated she is
recommending the housing committee be dissolved at this point. Currently local lenders and
realtors are meeting with staff to collaboratively discuss innovative ideas to deal with the
housing issues. These initiatives can be brought directly to the EDA.
MOTION BY FAIR TO ADOPT SUB-COMMITTEE POLICY SECONDED BY
PERRAULT. MOTION CARRIED. 6-0
The EDA directed staff to place appointment of EDA members on sub-committees at the
next regular meeting.
9. Establish preliminary 2009 Objectives:
Director Barnett went through the proposed 2009 Objectives. The proposed objects are
directly related to the Economic Development section in the Comprehensive Plan, including:
Attracting Jobs
Attracting New Businesses
Job Retention
Expanding Tax Base
Business Retention
Enhancing Downtown
Facilitating Redevelopment
Housing & Redevelopment Authority
Commissioner Fair suggested that additional coordination occur between the local schools
and the private businesses.
The EDA directed Staff to continue to research different measures businesses are taking to
try to retain jobs and how the City can assist.
Commissioner Fair stated we should continue to form a relationship with the local Workforce
Development Center.
Commissioner Fair stated the City should look at what the potential is to develop the City
owned parking lot property within downtown.
10. Presentation by Rusty Fifield
Director Barnett reviewed the TIF Records Retention and TIF Analysis question.
Councilmember Stumpf questioned the work and hours spent on the TIF Retention project.
Barnett and Kelly reviewed the reason and importance of initiating and completing the TIF
Records Retention program.
Mr. Fifield reviewed the work he has completed thus far on the TIF Analysis project. He
stated he has gone through all documentation for the 38 districts, cross referenced data with
the County and State auditor's office. He will begin creating profiles for each district and
determining a set of management suggestions for each district. The broad goal is to create a
clear understanding of what is happening with each TIF district and what this means to the
City.
Commissioner Fair asked if the information and format being put together is compliant with
State Auditor requirements.
Mr. Fifield stated he will provide the City with a document that is in compliant with all state
and county documentation and it is his hope the results will be a reference material for the
City. TIF is a complicated and rules have changed over time. Northland Security's goal is to
help everyone understand what is going on with each district, what can be done within each
district, in order to provide a tool that can aid in better financial decisions.
Barnett stated that a TIF Analysis should be completed by a City on a regular basis.
Barnett quickly reviewed the Director Report. She stated that the City via the IEDC and EDA
has been asked to discuss purchasing a 13 acre piece owned by Chadwick for future
industrial land.
The EDA stated they concurred with IEDC's general consensus to initiate conversations with
Mr. Chadwick, however not to be aggressive with a purchase. Further discussions on price
and funding sources need to be researched.
MOTION BY TAPPER SECONDED BY PERAULT TO ADJORN THE MEETING.
Meeting adjourned at 7:45pm.
President Executive Director
4. Approval of EDA Invoices.
a. WSB: Finalizing as-built grading plan and prepared City Council report for
Otter Creek. Pay request, finalize quantities, and punch list work for
Dalton Avenue.
b. Pay as you Go Notes: First distribution of Pay as you Go Notes for each
applicable TIF district.
c. Ehlers: Completion of the TIF Records Retention program.
d. Northland Securities: Partial payment for TIF Analysis & Management project
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Printed: 2/27/2009
Otter Creek Industrial Campus, Pre-Plat & Final Grading Plan
CP 2006-18C
Submittal
No.*
(I/PV #) Summary of Work Completed Final
Payment?
(Yes/No) Summary of Outstanding Work
I 38 Prepare City Council agenda
item and as-built grading plan No Warranty work and project close-
out
I 39 Finalize as-built grading plan
and submit to City No Warranty work and project close-
out
* WSB and Associates is managing this project for the City of Monticello, including managing
the submittal of all pay vouchers for the prime contractor. If "I" precedes the submittal number
it means that WSB has submitted an invoice for their services to manage the project. If "PV"
precedes the submittal number it means that WSB has submitted a pay voucher to the City for
the general contractor after checking to make sure the quantities agree with the construction
observer's quantities.
~L..r
Associates, I,sc. Infrastructure E Engineering E Planning E Construction 701 Xenia Avenue South
Suite 300
City of Monticello December 30, 2008 Minneapolis, MN 55416
Attn: Tom Kelfy Project No: 01488-920 t1"7`fi3-541-4800
505 Walnut Street, Suite 1 Invoice No: 39 IFax: 763- 1-1700
Monticello, MN 55362-8831 ~` ~-
Otte .Creek In #rial Campus /Preliminary Plat /Final Grading Plan zt 3 ~ ~ ~ 3~ ~ ~ >o ~~ ~ V
CP;~2A06-18C
Professiona Services from November 1 2008 to November 30 2008
Phase 3 Construction
Professional Personnel
Hours Rate Amount
General
Buckley, Susan 11/13/08 .25 62.00 15.50
Fnl as-built copies to CTY w/TRANS.
Project Management/Coordination
Bisson, Shibani 11/11/08 .50 121.00 60.50
review as-built grading plan
Bisson, Shibani 11/12/08 .50 121.00 60.50
final review of as-built grading plan/submit to City
Record Drawings
Fournier, Bruce 11/11/08 2.50 105.00 262.50
As-B u i It
Fournier, Bruce 11/12/08 1.50 105.00 157.50 , _
As-Built `r r -
,
~~ , t E
Totals 5.25 556.50
Total Labor 556.50
Total this Phase
Total this invoice
Billings to Date
Labor
Consultant
Expense
Field Services
Totals
Current
556.50
0.00
0.00
0.00
556.50
Prior
102,582.75
4,450.00
450.00
15,356.50
122,839.25
Total
103,139.25
4,450.00
450.00
15,356.50
123,395.75
$556.50
$556.50
fJlinneapolis E St. Cloud
Equal Opportunity Employer
Project 01488-920 MONT -Otter Creek Industrial Campus
Invoice 39
Comments:
Project Manager: Shibani Bisson
` ~" ~ ,
Page 2
Reviewed by: Bret Weiss
Printed: 2/27/2009
Dalton Ave. & Westerly Rd Extension
CP 2006-15C
Submittal
No.*
(I/PV #) Summary of Work Completed Final
Payment?
(Yes/No) Summary of Outstanding Work
I 25 Pay re uest/final qty's review No Punch list and final ay voucher
I 26 Finalize ty's & repare PV #6 No Punch list and warranty work
I 27 Punch list work inspection No Punch list and warranty work and
project close-out.
* WSB and Associates is managing this project for the City of Monticello, including managing
the submittal of all pay vouchers for the prime contractor. If "I" precedes the submittal number
it means that WSB has submitted an invoice for their services to manage the project. If "PV"
precedes the submittal number it means that WSB has submitted a pay voucher to the City for
the general contractor after checking to make sure the quantities agree with the construction
observer's quantities.
w$B
c~.gssociares, Inc. Infrastructure 1 Engineering 1 Planning t Construction 701 Xenia Avenue South
to 300
City of Monticello December 30, 2008 t ~~~nnea olis, MN 55416
Attn: Tom Kelly Project No: 01627-570 -,.,,TeI:T 1-4800
505 Walnut Street, Suite 1 Invoice No: 27 P ~ 40
Monticello, MN 55362-8831 ~ " .`~
.. ..~
Dalt~.ra-A terly Road Extension (Dalton Court) a
CP# 2006-15C
Profess ervices from November 1.2008 to November 30 2008
Phase 3 Construction
Professional Personnel
Hours Rate Amount
Pay Voucher
Buckley, Susan 11/3/08 .25 62.00 15.50
Revise PV #6 and Itr to CTY for SKB sign.
Totals .25 15.50
Total Labor 15.50
Field Services Billing
Construction Observation
2.0 Hours @ 96.00
Total Field Services
Total this Phase
Total this Invoice
Billings to Date
Labor
Consultant
Expense
Field Services
Totals
Comments:
Current
15.50
0.00
0.00
192.00
207.50
~~~~~~
Prior Total
86,796.25 86,811.75
3,104.19 3,104.19
617.64 617.64
50,945.00 51,137.00
141,463.08 141,
670.58
/
,
•
Approved by: ~-`~/'t' ~f~
Reviewed by: Bret Weiss
Project Manager: Shibani Bisson
192.00
192.00 192.00
$207.50
$207.50
b-R _ . ~ .~ ~ _ . .
Minneapolis [ St. Cloud
Equal Opportunity Employer
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~~~ Ehlers & Associates, Inc.
Leaders in Public Finance
3060 Centre Pointe Drive
Roseville, MN 55113
(651) 697-8500
Financial Advisory Services Invoice
Monticello Economic Development Authority
505 Walnut Avenue, Suite 1
Monticello, MN 55362-8822
Project: TIF Record Organization 2008
v
~~~
~.,: ~.._
Invoice #: 338804
Invoice Date: January 13, 2009
Page 1 of 2
Assist the City in evaluating its current TIF records and organizing files in
keeping with "best practices" checklist.
Date Worked ~ Description of Services Hours Amount
12-02-2008 RB TIF 1-13 Admin/Doc Books 2.50 412.50
12-02-2008 RB TIF 1-17 Admin/Doc Books 3.50 577.50
12-04-2008 ED Prepared: Finish TIF 19 documents 2.00 370.00
12-04-2008 SAL TIF 1-16 Doc/Admin 3.50 577.50
12-04-2008 SAL TIF 1-12 Doc/Admin 2.50 412.50
12-04-2008 SAL TIF 1-8 Doc/Admin 2.50 412.50
12-05-2008 ED Prepared: TIF 18 documents 1.50 277.50
12-05-2008 SAL TIF 1-4 Doc/Admin 2.50 412.50
12-10-2008 RB TIF 1-9 Admin/Doc Books 2.50 412.50
12-12-2008 ED Prepared: TIF 15 documents .75 138.75
12-12-2008 ED Prepared: TIF 14 documents .75 138.75
12-17-2008 ED Prepared: TIF 11 documents 1.50 277.50
12-19-2008 BKi Attended Meeting: Prepared for and attended TIF records 3.75 693.75
meeting at City
~v
Project: TIF Record Organization 2008 ~ ~-.~ ~'
Page 2 of 2
Date Worked ~ Description of Services Hours Amount
12-19-2008 RB TIF 1-5 Admin/Doc Book 3.50 577.50
12-22-2008 ED Prepared: TIF 10 documents 2.00 370.00
12-26-2008 SAL TIF 1-1 (City) Doc/Admin 1.50 247.50
12-30-2008 ED Prepared: TIF 7 documents 2.00 370.00
12-30-2008 ED Prepared: TIF 6 documents 2.00 370.00
12-30-2008 ED Prepared: TIF 3 documents 1.50 277.50
12-30-2008 RB TIF 1-1 (HRA) Admin/Doc Books 1.50 247.50
12-31-2008 ED Prepared: TIF 2 documents 1.75 323.75
12-31-2008 ED Prepared: TIF 22-additional files found by client-6 2.00 370.00
projects-sort and bind.
"'' '1-2008 ED Prepared: Col~lpile all districts (ED) into books. 3.00 555.00
I L.-J
12-31-2008 SAL 1.5" Ehlers Binders (Quantity: 32 @ $7.41/each) 32.00 237.12
12-31-2008 SAL 2" Ehlers Binders (Quantity: 8 @ $8.26/each) 8.00 66.08
12-31-2008 SAL Tab Inserts (1-8, Quantity: 3 @ $2.19/set) 3.00 6.57
12-31-2008 SAL Tab Inserts (1-10, Quantity: 5 @ $2.49/each) 5.00 12.45
12-31-2008 SAL Tab Inserts (1-12, Quantity: 12 @ $2.99/each) 12.00 35.88
12-31-2008 SAL Tab Inserts (1-15, Quantity: 25 @ $3.69/each) 25.00 92.25
135.50 $9,272.85
Adjustment: Write off of expenses above billing cap. -4,732.50
i( ~
` ! ~~r ~' ~, 4=~ Amount Due This Invoice $4,540.35 i
-~F G `
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~-I I
?~On~HLA.ND'SECURITIES INC
45 SOUTH 7TH STREET
SUITE 2500
MiNNEP.POLIS, MN 55402
USA
~, t~1Ce: 512-851-9 915
~'ax: 512-851-5951
NORTHLAND SECURITIES
Page:
Invoice
Invoice Number:
181E
Invoice Date:
1/15/09
1
Sold To:
City of Monticello
Megan Barnett, Econ Devel Dir.
505 Walnut Street, #1
Monticello, MN 55362
Custamer PO
ISt_at DIF Mgmt Study
Payment Terms
Net 30 Days
!'
-~~ ',r_•
~.~ ~~
1'
Sales Rep ID
Due Date
2/14/09
r Description Amount
i
!Services provided related to Strategic TIF Management Study (please see attached 2,048.45
ICCt cl _~ ~'.
i
i
i
i
Z~d$
~ E. h1 - C'.t.~b ~-~.~~ ~ ~ ~ ~ ~ ~ `I ~o
I ----_
~ ~;~ .. _
Subtotal 2 , 0 4 8.4 5
Sales Tax
Total Invoice Amount 2, 048 • °-5
Check No: Payment Received
TOTAL 2, 048.45
Northland Securities, Inc 4> South 7th Street, Suite 2700, Minneapolis, MN ~5'~02 Toll try, I-800-8>I-2920 Nta~~ 612-8~1->900 F.a 612-8~1-598?
www.northlandsecurities.com
Member FINRA znd SIPC
NORTHLAND SECURITIES
INVOICE SUPPLEMENT
Client: City of Monticello
Project: Strategic TIF Management Study
Contact: Megan Barnett
Economic Development Director
City of Monticello
505 Walnut Street #1
Monticello, MN 55362
Billing Period: November 1 through December 31, 2008
Services Performed
• Create district profiles
• Work day in Monticello/data collection (Dec 19)
Staff Time Position Hours Rate Billable
Senior Professional 9.00 $160 $1,440.00
Professional 4.00 $135 $540.00
Support - $105 $0.00
Total Staff 13.00 $1,980.00
Expenses Mileage $68.45
Printing $0.00
Other $0.00
Total Expenses $68.45
Total This Period $2,048.45
Project Summary Total Budget
Billed This Period
Billed Previous
Budget Remaining
$9,250.00
($2,048.45)
$0.00
$7,20L56
Northland Securities, Inc. Page 1 of 1
5. Public Hearing for the establishment of Business Subsidy Policy for the City of
Monticello:
A. REFERENCE AND BACKGROUND:
City Staff and Kennedy and Graven held a workshop with the EDA and City Council on
February 11, 2009. The purpose of the meeting was to review the proposed Business
Subsidy Policy. The established of a Business Subsidy document requires both review
and approval by the EDA and the City Council.
The EDA and City Council did not make any changes to the proposed policy. The
Business Subsidy Policy is general in nature and follows the objectives established in the
adopted Comprehensive Plan and Business Subsidy State Statutes.
B. ALTERNATIVE ACTION:
1. Approve Resolution No. approving a Business Subsidy Policy.
2. Deny Resolution No. approving a Business Subsidy Policy.
3. Table action and recommend staff make changes to the policy.
C. STAFF RECOMMENDATION:
Based on the outcome of the February workshop and the recommendation by Kennedy
and Graven to adopt a Business Subsidy Policy; staff is recommending the EDA approve
Resolution No. approving a Business Subsidy Policy for the City of Monticello.
The City Council is required to hold a public hearing to establish a Business Subsidy
Policy. The required public hearing will occur on March 23, 2009. Staff anticipates the
City Council will adopt a resolution approving the proposed policy.
CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO.
RESOLUTION APPROVING AMENDED BUSINESS SUBSIDY POLICY
BE IT RESOLVED By the Board of Commissioners ("Board") of the City of Monticello
Economic Development Authority ("Authority") as follows:
Section 1. Recitals.
1.01. Before awarding any "business subsidy" as defined in Minnesota Statutes, Section
116J.993 to 116J.994 (the "Business Subsidy Act"), the Authority is required to adopt criteria
regarding such subsidies after holding a public hearing.
1.02. The Board previously approved business subsidy criteria and has now determined to
amend and restate the criteria in accordance with requirements of the Business Subsidy Act, as
amended.
1.03. The Board has reviewed the Business Subsidy Criteria on file in City Hall, and has
on this date held a duly noticed public hearing at which all interested persons were given an
opportunity to be heard.
Section 2. Business Subsidy Polic~pproved.
2.01. The Board approves the Business Subsidy Criteria on file in City Hall, which criteria
supersede any prior business subsidy policy or criteria adopted by the Authority; provided that such
approval is subject to approval of such criteria by the City Council of the City of Monticello.
2.02. Authority staff are authorized to transmit a copy of the Business Subsidy Policy to
the Minnesota Department of Employment and Economic Development in accordance with the
Business Subsidy Act.
Approved by the Board of Commissioners of the City of Monticello Economic
Development Authority this 11~' day of March, 2009.
President
ATTEST:
Secretary
347382v1 MNI MN190-1
CITY OF MONTICELLO
CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
BUSINESS SUBSIDY CRITERIA
I. Pur ose
This document includes the criteria to be considered by the City of Monticello ("City")
and the City of Monticello Economic Development Authority ("EDA") to evaluate the
granting of business subsidies. The intent of the City and EDA in adopting these criteria
is to comply with Minnesota Statutes, Sec. 116J.993-116J.994 (the "Act"). The City and
EDA hereby adopt the definitions contained in the Act for application in the criteria.
II. Types of Business Subsidies
The EDA shall have the authority to administer the following programs: for the granting
of business subsidies:
1. Tax Increment Financing (TIF)
2. Greater Monticello Enterprise Fund (GMEF)
3. Small Cities Economic Development Set Aside Fund (ED)
The EDA has separately developed guidelines for each of these types of subsidies (the
"Guidelines"). To the extent that the Guidelines contain more specific policies for each
type of subsidy, those Guidelines control. Notwithstanding anything to the contrary
herein, the City (and EDA, subject to City approval) reserve the right to grant any type of
business subsidy authorized by law, without limitation.
III. Goals and Objectives/Public Purpose
It is the City's and EDA's intent to support and comply with the goals and objectives
stated in the City of Monticello's Comprehensive Plan in granting business subsidies, and
with the public purpose requirements of the Act. The following goals and objectives are
general guidelines to assist in determining the granting of a Business Subsidy. The City
and EDA recognize that every proposal is unique and nothing in these criteria or in the
Business Subsidy policy shall be deemed to be an entitlement.
a. Attracting New Businesses & Expanding Tax Base
1. Increase in tax base. (Cannot be the only criteria.)
2. Promote and enhance industrial and commercial diversity
b. Attracting New Jobs & Job Retention
1. Jobs and Wages. It is the City's and EDA's goal that the subsidy recipient will
create the maximum number of livable wage jobs possible. (The business
subsidy agreement must include numbers and wages to be achieved within two
years of the benefit date.)
2. Jobs and wages in this context may include jobs to be retained but only if job
loss is "imminent and demonstrable".
c. Business Retention: Promote and maintain industrial and commercial
diversity.
d. Enhancing Downtown: Promote revitalization and redevelopment
e. Facilitating Redevelopment: Promote redevelopment objectives and removal
of blight, including pollution cleanup.
f. Housing: Diversify the housing stock available within the community.
2
IV. Subsidy Agreement.
In the implementation of any subsidy granted by City or EDA, the parties will be required
to enter into a formal agreement which identifies the amount and nature of the subsidy
and articulates the goals and objectives which are intended to be implemented. In
addition, the agreement must establish the number of full-time or part-time jobs and the
wages for those jobs which are to be established (or retained) within two years of the
benefit date. The agreement must also contain a penalty for failure to meet those goals.
Finally, the agreement will require that the recipient continue operations at the site for at
least five years.
V. Compliance and Reporting Requirements.
It will be necessary for both the recipient and the City or EDA to comply with the
reporting and monitoring requirements of the statute.
VI. Histo
Public Hearing on , 2009 approved on , 2009
3
6. Recommend the City Council approve the adoption of Business Subsidy Criteria
related to: Tax Increment Financing, Greater Monticello Enterprise Fund, and
Monticello Small Cities Economic Development Set-aside Revolving Loan Fund
A. REFERENCE AND BACKGROUND:
City Staff and Kennedy and Graven held a workshop with the EDA and City Council on
February 11, 2009. The purpose of the meeting was to review the proposed Business
Subsidy criteria related to Tax Increment Financing (TIF), Greater Monticello Enterprise
Fund (GMEF), and Small Cities Economic Development Set-aside Revolving Loan Fund.
At the workshop, Martha Ingram, from Kennedy and Graven, went through each
document in detail. The EDA directed staff to complete the following:
TIF:
a. Project Evaluation Criteria:
Staff was directed to re-word the following statement:
"Changes to the Comprehensive Plan and City Code must be under active
consideration by the City at the time of approval. "
The statement now reads:
" TIF proposals will be considered under the Comprehensive Plan and City
Code in effect at the time the TIF proposal is received. "
GMEF:
a. Definition of Public Purpose:
Staff was directed to add a qualifier that at least one of the public purpose
statements needs to be met. The statement now reads:
"GMEF Loans must meet at least one (1) of the following public purposes
(if the EDA finds that the public purpose described in b. is met, the EDA must
find that the GMEF loan meets at least one additional public purpose)
b. Definition of Public Purpose:
2. "termination date" was removed, the statement now reads: "repayment of
the assistance"
Greater Monticello Enterprise Fund Policies:
a. Business Eligibility: Staff was directed to make this section clearer. The
section now reads:
1. Industrial and commercial businesses
2. Business currently located or to be located within the City of
Monticello
3. Credit-worthy existing businesses
4. Start-up businesses with a worthy business plan and/or pro forma in a
form acceptable to the EDA (historically non credit worthy businesses
will be denied)
d. Interest Rate: Staff was directed to add a minimum floor rate of 3%. The
statement now reads:
"Fixed rate not less than 2% below prime rate as published in the Wall
Street Journal on date of EDA loan approval, with a minimum interest rate of
3.0%. "
e. Staff was directed to change "Legal Fees" to now state "Out of Pocket Fees"
Monticello Small Cities Economic Development Set-aside Revolving Loan Fund:
a. Eligible Activities:
1. Staff was directed to remove "Purchase of Inventory" and "Working Capital"
2. Staff was also directed to remove the word "facilities," the statement now reads
"Public improvements and privately owned utilities"
b. Project costs and financial requirements:
Staff inserted the same process included in the GMEF guidelines
B. STAFF RECOMMENDATION:
City Staff and legal counsel made changes as directed by the EDA and City Council.
Therefore Staff is recommending the EDA approve and recommend the City Council
approve the proposed business subsidy guidelines for TIF, GMEF, and Small Cities
revolving loan fund.
C. ALTERNATIVE ACTION:
1. Recommend the City Council approve Business Subsidy guidelines related to TIF,
GMEF, and Monticello Small Cities Set-aside Revolving Loan Fund.
2. Recommend the City Council deny the Business Subsidy guidelines.
3. Table action and recommend staff make changes to the Business Subsidy guidelines.
EDA: 3.11.09
2
EDA -TIF Criteria
MOIL"fICELLO
CITY OF MONTICELLO
ECONOMIC DEVELOPMENT AUTHORITY
TAX INCREMENT FINANCING
1. PROJECT EVALUATION CRITERIA
1:01 Tax increment financing proposals must meet a public purpose in addition to increasing tax
base; which can include but are not limited to, the creation of livable wage jobs, removal of
blight, and environmental clean up.
1:02 The EDA will utilize Tax Increment financing (TIF) to support the community's long-term
economic, redevelopment, and housing goals stipulated in the Comprehensive Plan and
Zoning Ordinance. TIF proposals will be considered under the Comprehensive Plan and City
Code in effect at the time the TIF proposal is received.
1:03 The EDA shall use the following guidelines when evaluating a TIF request.
A. All TIF requests shall meet the "but for" test. The "but for" test means that the project
would not develop solely on private investment in the reasonable future. The
developer shall provide findings for the "but for" test.
B. TIF will not be provided to projects that have the financial feasibility to proceed
without the benefit of the subsidy. In effect, TIF will not be provided solely to
broaden a developer's profit margins on a project.
C. TIF requests should create the highest feasible number of jobs on site from date of
occupancy where deemed appropriate.
D. For manufacturing and warehousing TIF requests, at least 90% of the jobs created
must pay at least 160% of the federal minimum wage requirements for individuals
over the age of 20 during the term of the assistance. In the case of a recipient with
existing jobs, the EDA may determine that the wage goal is satisfied if wages are
increased to at least the minimum specified in this paragraph. Annual written reports
are required until termination date. Failure to meet the job and wage level goals
require partial or full repayment of the assistance with interest.
1
EDA -TIF Criteria
E. In the case of a recipient with existing jobs, the EDA may determine that the wage
goal is satisfied if wages are increased by a specified amount over the federal
minimum wage. Annual written reports are required until termination date. Failure to
meet the job and wage level goals require partial or full repayment of the assistance
with interest.
F. TIF requests should result in a substantial increase in property value and/or property
taxes.
F. TIF requests should facilitate redevelopment or elimination of "substandard" or
"blighted" areas where deemed appropriate.
G. TIF requests should facilitate the "clean-up" of environmentally unsound property
where deemed appropriate.
H. TIF requests should increase housing options for area residents where deemed
appropriate.
2. TIF APPROVAL CRITERIA
2:01 All new projects considered by the EDA should meet the following minimum approval
criteria. However, it should not be presumed that a project meeting these criteria will
automatically be approved. Meeting these criteria creates no contractual right on the part of
any potential developer or the EDA.
2:02 Prior to approval by the EDA, the developer shall provide any and all applicable and required
market and financial documentation, appraisals, soil boring, information provided to private
lenders for the project, and other information or data as requested.
2:03 A recipient of TIF must make a commitment to continue operations at the site where the
subsidy is used for at least five years after the benefit date.
2:04 The EDA may determine job creation or retention is not a goal of the subsidy. In those cases,
the recipient must instead meet at least one of the following minimum requirements (in
addition to all other criteria in this document other than those relating to jobs and minimum
wages):
A. To remove blight and encourage redevelopment in the commercial and industrial areas
of the City in order to encourage high levels of property maintenance and private
reinvestment in those areas; or
B. The proposed subsidy must result in improvements to public infrastructure or public
facilities, including without limitations, sewers, storm sewers, streets, parks,
recreational facilities, and other City facilities; or
C. The proposed subsidy must remove physical impediments to development of land,
including without limitations poor soils, bedrock conditions, steep slopes, or similar
geotechnical problems.
2
EDA - TIF Criteria
3. PROCEDURES
3:01 Meet with appropriate Staff to discuss the scope of the project, define public assistance
requested, identify public participation eligibility, and other information as may be necessary.
3:02 The request shall be reviewed by Staff on a preliminary basis as to the feasibility of the
project.
3:03 The project concept shall be placed on the EDA agenda for concept review. The applicant
will make a presentation of the project. Staff will present its findings.
3:04 If EDA concept review is positive, Staff will provide the City Council with an informational
concept review.
3:05 The City will hold all required public hearings.
3:06 The applicant will execute and submit the Preliminary Development Agreement accompanied
by a deposit per approved fee schedule.
3:07 Building and site plans will be required to be submitted to the Community Development
Department.
3:08 If Planning and Zoning Commission action is required, it will be necessary for the applicant,
at this time, to make application to the Commission.
3:09 Staff will authorize the following steps:
A. Preparation for establishment of the Tax Increment Finance District and the Tax
Increment Financing Plan if required.
B. Preparation of the Purchase and Development Contract or Private Redevelopment
Contract (Subsidy Agreement) based upon agreed terms.
3:10 When action is required for the Tax Increment Finance District and Plan, Purchase and
Development Contract or Private Redevelopment Contract, or Zoning/Ordinance; the EDA,
Planning Commission and City Council shall take appropriate action such as public hearings
and consideration of approvals.
3:11 Building permit will be issued after the Tax Increment Finance District and Plan is .approved
by the City Council, the Purchase and Development Contract or Private Redevelopment
Contract is executed by the developer and EDA, and the Building Permit Fees are paid.
3:12 Generally Tax Increment Financing projects take between six to eight weeks from time of
authorization to begin drafting plan and contract.
History:
Public Hearing and Adoption the 8~' of September 1999
Public Haring and Adoption of Amendments the 4`~ day of October 2000
Public Hearing and Adoption of Amendments the 5`~ of May 2004
3
EDA - TIF Criteria
Public Hearing and Adoption of Amendments the 3`a day of May 2006
Public Hearing and Adoption the 12~` day of November 2008
f j
h~tY,`'TiCEL1
GREATER MONTICELLO ENTERPRISE FUND GUIDELINES
1. PURPOSE
The purpose of the Greater Monticello Enterprise Fund (GMEF) is to encourage economic development
by supplementing conventional financing sources available to existing and new businesses. This
program is administered by the City of Monticello Economic Development Authority (EDA) and
participating lending institution(s). GMEF Loans are made to businesses to help them meet a portion of
their financing needs. The loans are meant to be a secondary source of financing, provide gaps in private
financing, and assist in securing other grants. All loans must meet four or more of the criteria
established in the Definition of Public Purpose section.
2. ORGANIZATION
The Greater Monticello Enterprise Fund is administered by the EDA. It is the responsibility of the EDA
to assure that loans meet the public purpose standard and comply with all other GMEF policies as
defined in this document.
3. GMEF GUIDELINE MODIFICATION
At a minimum, the EDA shall review the guidelines on an annual basis. Changes to the GMEF
guidelines require approval by the City Council.
4. DEFINITION OF PUBLIC PURPOSE
GMEF Loans must meet at least one (1) of the following public purposes (if the EDA finds that the
public purpose described in b. is met, the EDA must find that the GMEF Loan meets at least one additional
public purpose):
a. To provide loans for credit-worthy businesses which create new jobs.
1. One job is equivalent to a total of 37.5 hours per week.
2. At least 90% of the jobs created must pay at least 160% of the federal minimum wage,
exclusive of benefits, for individuals over the age of 20 during the term of assistance. Annual
written reports are required until repayment of the assistance. Failure to meet the job and
wage level goals requires partial or full repayment of the assistance with interest.
b. To provide loans for credit-worthy businesses that would increase the community tax base.
c. To provide loans to credit-worthy industrial or commercial businesses (new or existing) that would
allow the ability to improve or expand their operation. Factors including but not limited to the
following will betaken into account:
1. Type and size of the business
2. Product or service involved
3. Present availability of the product or service within the City of Monticello
4. Compatibility of the proposed business as it relates to the comprehensive plan and existing
zoning policies,
5. Potential for adverse environmental effects of the business, if any.
d. In the event job creation is not a viable option, credit-worthy businesses have the ability to demonstrate
public purpose by means of job retention.
5. GREATER MONTICELLO ENTERPRISE FUND POLICIES
a. Business Eli ig bilit~
1. Industrial and commercial businesses.
2. Businesses currently located or to be located within the City of Monticello.
3. Credit-worthy existing businesses.
4. Start-up businesses with worthy business plan andlor pro forma in a form acceptable to the
EDA (historically non credit-worthy businesses will be denied).
b. Acceptable Private Financing Methods:
1. Companion Direct Loan: The GMEF is subordinate to the primary lender.
2. Participation Loan: The GMEF participates in a portion of the loan.
3. Guarantee Loans: The GMEF guarantees a portion of the bank loan.
a. Interest rate cap is subject to EDA approval
c. Use of Proceeds:
1. Real property acquisition, development, & rehabilitation improvement costs including but
not limited to the following:
a. Land Acquisition
b. Engineer/Design Inspection Fees
c. Building Permit Fees
d. Architect Fees
e. Building Materials
f. Soil Borings
g. Construction Labor
h. Appraisal Fees
i. Landscaping
j. Legal Fees
2
k. Grading
1. Environmental Study
m. Curbing/Parking Lot
n. Recording Fees
o. Title Insurance
2. Machinery and equipment:
a. Personal property used as an integral part of the manufacturing or commercial
business, with a useful life of at least three years. Acquisition costs would include freight
and sales taxes paid. As a general rule, office equipment would not qualify.
d. Terms and conditions:
1. Loan Size: Minimum of $25,000 and maximum not to exceed 50% of the remaining GMEF
balance
2. Leveraging: Minimum 60% private/public Non-GMEF, Maximum 30% GMEF, Minimum
10% equity.
3. Loan Term: Personal property term not to exceed life of equipment (generally 5-7 years).
Real estate property maximum of 5-year maturity amortized up to 30 years. Balloon payment
at 5 years.
4. Interest Rate: Fixed rate not less than 2% below prime rate as published in the Wall Street
Journal on date of EDA loan approval, with a minimum interest rate of 3.0%.
5. Loan Fee: Minimum of $500 but not to exceed 1.5% of the total loan. Fees are to be
documented and no duplication of fees between the lending institution and the GMEF. Loan
fee maybe incorporated into project cost. EDA retains the right to reduce or waive loan fee
or portion of loan fee. Fee to be paid by applicant to the EDA within 5 working days after
City Council approval of GMEF loan. The fee is non-refundable.
e. Pre-payment Policv:
No penalty for pre-payment
f. Deferral of Payments:
1. Extending a balloon payment will require a verification letter from two lending institutions
stating the inability to refinance and is subject to approval by the EDA.
2. Monthly payments may be deferred for a determined period of time upon approval by the
EDA.
g. Late Payment Policv:
1. Failure to pay principal or interest when due may result in the loan being immediately called.
In addition to any other amounts due on any loan, and without waiving any right of the
Economic Development Authority under any applicable documents, a late fee of $250 will be
3
imposed on any borrower for any payment not received in full by the Authority within 30
calendar days of the date on which it is due. Furthermore, interest will continue to accrue on
any amount due until the date on which it is paid to the Authority, and all such interest will
be due and payable at the same time as the amount on which it has accrued.
h. Assumability of Loan:
None
i. Business Equity Requirements:
Subject to type of loan. The EDA will determine appropriate and applicable business equity
requirements on a case by case analysis, utilizing normal lending guidelines.
j. Collateral:
1. Liens on real property in project (mortgage deed).
2. Liens on real property in business (mortgage deed).
3. Liens on real property held personally (subject to EDA approval, homestead exempt).
4. Machinery and equipment liens (except equipment exempt from bankruptcy).
5. Personal and/or corporate guarantees (requires unlimited personal guarantees).
k. Non-Performance:
An approved GMEF loan shall be null and void if funds are not drawn upon or disbursed within 180
days from date of City Council approval.
1. Non-Performance Extension:
1. The 180-day non-performance date can be extended up to an additional 120 days, upon approval
by the EDA.
2. A written request must be received 30 days prior to expiration of the 180-day non-performance
date.
m. Out of Pocket Fees:
Responsibility of the GMEF applicant.
n. EqualOpportunit~
The Greater Monticello Enterprise Fund is operated as an equal opportunity program. All applicants
shall have equal access to GMEF funds regardless of race, sex, age, marital status, or other personal
characteristics
o. Participating Lending Institution(s):
1. Participating lending institution(s) shall be determined by the GMEF applicant.
4
2. Participating lending institution(s) shall cooperate with the EDA and assist in carrying out the
policies of the GMEF as approved by the City Council.
3. Participating lending institution(s) shall analyze the formal application and indicate to the EDA
the level at which the lending institution will participate in the finance package.
p. Loan Administration:
1. City Staff shall collect applicable GMEF payments.
2. City Staff shall assure City compliance with all applicable terms and conditions of the approved
loan.
3. All loan documents shall include the following:
a. Definition of loan default, agreements regarding notification of default
b. Copy of primary lenders documents
c. Provisions allowing the City to inquire on the status of the primary loan
6. LOAN APPLICATION PROCEDURES
The EDA desires to make the GMEF loan application process as simple as possible. However,
certain procedures must be followed prior to EDA consideration of a loan request. Information
regarding the program and procedures for obtaining a loan are as follows:
a. Cit.. S~ City Staff shall carry out GMEF operating procedures as approved by the EDA
and City Council. Staff is responsible for assisting businesses in the loan application process
and will work closely with applicants in developing the necessary information.
b. Application Process:
1. Applicant shall complete a preliminary loan application. Staff will review application
for consistency with the policies set forth in the Greater Monticello Fund Guidelines.
2. If applicant gains initial support from lending institution and if the preliminary loan
application is approved, applicant is then asked to complete a formal application.
Formal application shall include a business plan which will include its management
structure, market analysis, and financial statement. Like documentation necessary for
obtaining the bank loan associated with the proposal is acceptable. Attached with
each formal application is a written release of information executed by the loan
applicant
3. If the preliminary loan application is not approved by staff, the applicant may request
that the EDA consider approval of the preliminary application at the next regularly
scheduled meeting of the EDA.
4. City staff shall analyze the formal application and financial statements contained
therein to determine if the proposed business and finance plan is viable City staff
shall submit a written recommendation to the EDA. A decision regarding the
5
application shall be made by the EDA within 60 days of the submittal of a completed
formal application.
5. The EDA shall have authority to approve or deny loans; however, within 21 days of
EDA approval, the City Council may reverse a decision by the EDA to approve a loan
if it is determined by the City Council that such loan was issued in violation of GMEF
guidelines.
6. Prior to issuance of an approved loan, the EDA Attorney shall review and/or prepare
all contracts, legal documents, and inter-creditor agreements. After such review is
complete, the City shall issue said loan.
7. REPORTING
City Staff shall submit to the EDA and City Council a semiannual report detailing the balance of the
Greater Monticello Enterprise Fund.
8. HISTORY
Public Hearing and Adoption the 31St day of August, 1999
Public Hearing and Adoption of Amendments the 8th day of November 2000
Public Hearing and Adoption of Amendments the 24th day of Apri12001
Public Hearing and Adoption of Amendments the 13th day of December 2005
Public Hearing and Adoption the day of , 2009
6
a
MC}':~TICEtI~
MONTICELLO SMALL CITIES ECONOMIC DEVELOPMENT SET-
ASIDE REVOLVING LOAN FUND GUIDELINES
1. PURPOSE:
The City of Monticello ("City") has received a grant through the Community Development Block
Grant Economic Development Set Aside program (the "Program") administered through the
Department of Employment and Economic Development ("DEED"). The grant may be used to make
loans to local businesses as described below.
As the recipient of a grant through the Program, the City is authorized to keep all of the principal
repayments and interest on the loans it makes. The City is required to use these funds to create a
revolving loan fund ("RLF") and to establish policies and procedures for the RLF. Once the RLF
funds have been re-issued as new loans, RLF loan repayments may be redirected to the Greater
Monticello Enterprise Fund ("GMEF") administered by the City of Monticello Economic
Development Authority ("EDA").
I. PURPOSE OF THE REVOLVING LOAN FUND
Revolving loan funds are to be used for business start ups, expansions, and retention
where jobs are created or retained. This maybe accomplished by the following means:
1.) Creation or retention of permanent private-sector jobs in order to create above average
economic growth;
2.) Stimulation or leverage of private investment to ensure economic renewal and
competitiveness;
3.) Increase to the local tax base;
4.) Improvement of employment and economic opportunity for citizens in the region to
create a reasonable standard of living; and
5.) Stimulation of productivity growth through improved manufacturing or new
technologies.
II. ELIGIBLE EXPENDITURES
RLF's maybe used to provide assistance for infrastructure, loans, loan guarantees, interest
buy-downs, and other forms of participation with private sources of financing. The RLF
assistance can be for no more than one-half of the cost of the project. The RLF is subject to
all of the state and federal CDBG requirements, as described in Exhibits A and B attached.
However, once the loan funds have cycled through the RLF and are redirected to the GMEF,
the funds will no longer be subject to federal CDBG requirements.
III. ELIGIBLE PROJECTS
The grant or loan must be based on one or more of the following criteria:
l .) Creation of new jobs or retention of existing jobs;
2.) Increase in the tax base;
3.) Investment of public dollars inducing private investment;
4.) Excessive public infrastructure or improvement cost beyond the means of the affected
community and private participants in the project;
5.) Higher wage levels to the community or added value to current workforce skills;
6.) Necessity of assistance to retain existing business; and
7.) Necessity of assistance to attract out-of--state business.
The grant or loan cannot be made based solely on a finding that the conditions in clause
2.), 6.) or 7.) exist. A finding must be made that a condition in clause 1.), 3.), 4.), or 5.)
also exists.
IV. ELIGIBLE ACTIVITIES
RLF's may be used for the following activities:
1.) Purchase of land
2.) Construction of a building or other improvements
3.) Renovation of an existing building to accommodate the business
4.) Construction of tenant improvements
5) Purchase of Capital Equipment
6.) Lease or purchase of an existing building
7.) Site improvements
8.) Public improvements and privately owned utilities
9.) Workforce Development including job training and placement:
a.) Training low skilled, low-income persons for specific jobs for which they
have been hired and which require skill levels beyond what they now have;
b.) Training a pool oflow-income prospective employees for specific jobs being
created as a result of aCDBG-funded industrial expansion, where the
employer agrees to give first consideration to filling the new positions with
people from this pool;
c.) Re-training existing employees of a business as part of a project which
qualifies as retaining jobs.
10.) Microenterprise Assistance: RLF assistance can be provided to persons owning or
developing a microenterprise, which is defined as a commercial enterprise that has 5
or fewer employees, one or more of whom owns the enterprise.
V. INELIGIBLE ACTIVITIES
RLF assistance may not be used for the following:
1.) Operation or expansion of a casino.
2.) For a project related to a sports facility. "Sports facility" means a building that has
a professional sports team as a principal tenant.
3.) General promotion of the community.
4.) Professional sports teams.
5.) Privately owned recreational facilities that serve a predominantly higher income
clientele where the benefit to users clearly outweighs the benefit of jobs created or
retained.
6.) Acquisition of land for which a specific use has not been identified (i.e. land
banking)
7.) Assistance to a for-profit business that is, or its owner is, the subject of unresolved
findings of noncompliance related to previous CDBG assistance.
8.) For relocation of an out of state business.
9.) New housing construction.
10.) Planning for economic development projects.
11.) Job training that is not part of a CDBG eligible economic development activity to
create or retain permanent jobs.
12.) Working capital.
VI. PUBLIC BENEFIT
A project using RLF funds must show a minimum level of public benefit. The amount of
the assistance must not exceed $50,000 per full-time equivalent, permanent job (created
or retained). If the City finds, after a public hearing, that the primary purpose of the
project is not job creation, this provision is not applicable.
VII. PROJECT COSTS AND FINANCIAL REQUIREMENTS
A. Acceptable Private Financing Methods:
1. Companion Direct Loan: The RLF is subordinate to the primary lender.
2. Participation Loan: The RLF participates in a portion of the loan.
3. Guarantee Loans: The RLF guarantees a portion of the bank loan.
a. Interest rate cap is subject to City approval
B. Terms and Conditions:
1. Leveraging: Minimum 60% private/public Non-RLF, Maximum 30%RLF,
Minimum 10% equity.
2. Loan Term: Personal property term not to exceed life of equipment (generally
5-7 years). Real estate property maximum of 5-year maturity amortized up to
30 years. Balloon payment at 5 years.
3. Interest Rate: Fixed rate not less than 2% below prime rate as published in the
Wall Street Journal on date of RLF loan approval, with a minimum interest
rate of 3.0%.
4. Loan Fee: Minimum of $500 but not to exceed 1.5% of the total loan. Fees
are to be documented and no duplication of fees between the lending
institution and the RLF. Loan fee may be incorporated into project cost. City
retains the right to reduce or waive loan fee or portion of loan fee. Fee to be
paid by applicant to the City within 5 working days after City Council
approval of RLF loan. The fee is non-refundable.
C. Other:
1. No penalty for prepayment of loan in whole or in part.
2. Extending a balloon payment will require a verification letter from two
lending institutions stating the inability to refinance and is subj ect to approval
by the City.
3. Monthly payments may be deferred for a determined period of time upon
approval by the City.
4. Failure to pay principal or interest when due may result in the loan being
immediately called. In addition to any other amounts due on any loan, and
without waiving any right of the City under any applicable documents, a late
fee of $250 will be imposed on any borrower for any payment not received in
full by the City within 30 calendar days of the date on which it is due.
Furthermore, interest will continue to accrue on any amount due until the date
on which it is paid to the City, and all such interest will be due and payable at
the same time as the amount on which it has accrued.
5. RLF Loans are not assumable.
6. The City will determine appropriate and applicable business equity
requirements on a case by case analysis, utilizing normal lending guidelines,
subject to the type of assistance.
7. Collateral may include:
i. Liens on real property in project (mortgage deed).
ii. Liens on real property in business (mortgage deed).
iii. Liens on real property held personally (subject to City approval, homestead
exempt).
iv. Machinery and equipment liens (except equipment exempt from bankruptcy).
v. Personal and/or corporate guarantees (requires unlimited personal
guarantees).
8. An approved RLF loan shall be null and void if funds are not drawn upon or
disbursed within 180 days from date of City Council approval.
i. The 180-day non-performance date can be extended up to an additional 120
days, upon approval by the City.
ii. A written request must be received 30 days prior to expiration of the 180-day
non-performance date.
9. Legal fees are the responsibility of the RLF applicant.
10. Participating Lending Institutions:
i. shall be determined by the RLF applicant
ii. shall cooperate with the City and assist in carrying out the policies of the RLF
as approved by the City Council.
iii. Shall analyze the formal application and indicate to the City the level at
which the lending institution will participate in the finance package.
11. Loan Administration:
i. City Staff shall collect applicable RLF payments
ii. City Staff shall assure City compliance with all applicable terms and
conditions of the approved loan.
iii. All loan documents shall include the following:
a) Definition of loan default, agreements regarding notification of
default
b) Copy of primary lenders documents
c) Provisions allowing the City to inquire on the status of the primary
loan
VIII. LOAN APPLICATION PROCEDURES
The City desires to make the RLF loan application process as simple as possible.
However, certain procedures must be followed prior to City consideration of a loan
request. Information regarding the program and procedures for obtaining a loan are as
follows:
a. Cit Staff: City Staff shall carry out RLF operating procedures as approved
by the EDA and City Council. Staff is responsible for assisting businesses in
the loan application process and will work closely with applicants in
developing the necessary information.
b. Application Process:
1. Applicant shall complete a preliminary loan application. Staff will
review application for consistency with the policies set forth in the
Guidelines.
2. If applicant gains initial support from lending institution and if the
preliminary loan application is approved, applicant is then asked to
complete a formal application. Formal application shall include a
business plan which will include its management structure, market
analysis, and financial statement. Like documentation necessary for
obtaining the bank loan associated with the proposal is acceptable.
Attached with each formal application is a written release of
information executed by the loan applicant
3. If the preliminary loan application is not approved by staff, the
applicant may request that the City consider approval of the
preliminary application at the next regularly scheduled meeting of the
City Council.
4. City staff shall analyze the formal application and financial
statements contained therein to determine if the proposed business
and finance plan is viable City staff shall submit a written
recommendation to the City. A decision regarding the application
shall be made by the City within 60 days of the submittal of a
completed formal application.
5. Prior to issuance of an approved loan, the EDA Attorney shall review
and/or prepare all contracts, legal documents, and inter-creditor
agreements. After such review is complete, the City shall issue said
loan.
Exhibit A
STATE REQUIREMENTS
1. MINNESOTA INVESTMENT FUND (MS.116J.8731)
Wage Goals: Businesses receiving RLF assistance must pay each employee total
compensation, including benefits not mandated bylaw, that on an annualized basis is equal
to at least 110% of the federal poverty level for a family of four.
Retail Businesses: are not prohibited from receiving federal ED assistance.
2. MUNICIPAL RIGHTS, POWERS, DUTIES (MS 471.87-471.88)
An officer of the city may not have a personal financial interest or personally benefit
financially from the business to be assisted.
3. BUSINESS SUBSIDY LAW (MS 116J.993-116J.995).
Any state or local government agency or public entity that provides financial assistance to a
business must comply with this statute.
4. FIRST SOURCE AGREEMENT (MS 116L.66)
A business that receives grants or loans in an amount greater than $200,000 must list any
vacant or new positions with the Department of Employment and Economic Development.
5. SURETY DEPOSITS REQUIRED FOR CONSTRUCTION CONTRACTS (MS
290.9705
When a contract exceeds $100,000 and anon-Minnesota construction contractor has been
hired to perform the work, the city must do one of the following:
a. Deposit with the Department of Revenue, 8 % of every payment made to the
contractor; or
b. Have in its possession a Waiver of Withholding from the Department of Revenue.
6. GOVERNMENT DATA PRACTICES (MS 13)
Information contained in the application for assistance will become a matter of public
record with the exception of those items protected under the Minnesota Government Data
Practices Act.
Exhibit B
FEDERAL REQUIREMENTS
A. The project must meet at least one of two national objectives. These objectives are:
Benefit to Low and Moderate Income (LMI) or Prevention or Elimination of Slums or
Bli t.
Low and Moderate Income
Job Creation/Retention.
The business to be assisted must commit to the creation and or retention of jobs with 51%
of the jobs to be made available to or held by LMI persons. When jobs will be retained,
the business must document that the jobs would be lost without the RLF assistance and
that one or both of the following applies to at least 51% of the jobs:
a.) The job is held by a LMI person; or
b.) The job can reasonably be expected to turn over within the following 2 years and
steps will betaken to ensure that the job will be filled by, or made available to, a LMI
person.
A position is "Available to" LMI persons if the following criteria apply to the position:
a.) The job does not require special skills that can only be acquired with substantial
training, work experience or education beyond high school.
b.) The business agrees to hire unqualified persons and provide training; and
c.) The city and the assisted business take actions to ensure that LMI persons receive
first consideration for filling such jobs.
A job that is "Taken by" an LMI person if his/her household income is within the Section
8 income guidelines. (See attached Job Information form)
Retained Jobs
In order to consider jobs retained as a result of this assistance, there must be "clear and
objective" evidence that permanent jobs will be lost without such assistance. For these
purposes "clear and objective" evidence means that jobs will be lost would include:
a) Evidence that the business has issued a notice to affected employees or made a
public announcement to that effect, or
b) Analysis of relevant financial records which clearly and convincingly shows that the
business is likely to have to cut back employment in the near future without the planned
intervention.
To meet the LMI standard, 51 % or more of the retained jobs must be either:
a) Known to be held by LMI persons at the time this assistance is provided and/or
b) Jobs not known to be held by LMI persons, but which can be reasonably expected to
"turn over" to LMI persons within 2 years. (This would involve the grant recipient or
business taking actions to ensure that such a job, upon turnover, will be either taken by or
made available to a LMI person in a manner similar to that pertained to a newly created
job.
SlumsBlight
An economic development project, such as commercial rehab, which aid in the
prevention or elimination of slums or blight in a designated area may qualify under the
Slum/Blight National Objective.
To qualify, the economic development activity must take place in an area that:
1.) Has been designated by the city as meeting a definition of a slum, blighted,
deteriorated or deteriorating area under state or local law; and
2.) Has a substantial number of deteriorated or deteriorating buildings, or the public
improvements are in a general state of deterioration.
The assisted activity must address the conditions that contributed to the deterioration of
the delineated area.
The city must maintain documentation on the boundaries of the area and the condition
which qualified the area when it was designated under state or local law.
B. An RLF project must also meet the following federal requirements:
1. FAIR HOUSING AND EQUAL ACCESS
a. Title VI of the Civil Rights Act of 1964, as Amended (42 U.S.C. 2000d et seq. (24
CFR Part 1)
No person maybe excluded from participation in, denied the benefits of, or subjected to
discrimination under any program or activity receiving Federal financial assistance on the
basis of race, color or national origin.
b. The Fair Housing Act (42 U.S.C. 3601-3620) ((24 CFR Part 100-115)
Prohibits discrimination in the sale or rental of housing, the financing of housing or the
provision of brokerage services against any person on the basis of race, color, religion,
sex, national origin, handicap or familial status. Furthermore, section 104 (b) (2) of the
Act requires that each grantee certify to the secretary of HUD that it is affirmatively
furthering fair housing. The certification specifically requires grantees to conduct a fair
housing analysis, develop a fair housing plan, take appropriate actions to overcome the
effects of any impediments identified and maintain records on the analysis, plan and
actions in this regard.
c. Equal Opportunity in Housing (Executive Order 11063, as amended by Executive
Order 12259L24 CFR Part 107)
Prohibits discrimination against individuals on the basis of race, color, religion, sex or
national origin in the sale, rental, leasing oar other disposition of residential property, or
in the use or occupancy of housing assisted with Federal funds.
d. Abe Discrimination Act of 1975, As Amended (42 U.S.C. 6101) (24 CFR Part 1461
Prohibits age discrimination in programs receiving Federal financial assistance.
e. Section 109 of Title I of the Housing and Community Development Act of 1974
Requires that no person shall be excluded from participation in, be denied the benefits of,
or be subjected to discrimination under any program or activity funded with CDBG funds
on the basis of race, color, religion, national origin or sex.
f. Americans with Disabilities Act (ADA) (42 U.S.C. 12131; 47 U.S.C. 155 201 218
and 225)
Provides comprehensive civil rights to individuals with disabilities in the areas of
employment, public accomodations, state and local government services and
telecommunications. The Act also states that discrimination includes the failure to design
and construct facilities that are accessible to and usable by persons with disabilities and
requites the removal of architectural and communication bamers that are structural in
nature in existing facilities.
g Section 504 of the Rehabilitation Act of 1973
Prohibits discrimination in Federally assisted programs on the basis of handicap. It
imposes requirements to ensure that "qualified individuals with handicaps" have access to
programs and activities that receive Federal funds.
h. Architectural Barriers Act of 1968 (942 U.S.C. 4151-4157)
Requires certain Federally funded buildings an other facilities to be designed, constructed
or altered in accordance with standards that ensure accessibility to, and use by, physically
handicapped people.
2. EQUAL OPPORTUNITY
a. Etc ual Employment Opportunity, Executive Order 11246, as amended.. (41 CFR
art 60
Prohibits discrimination against any employee or applicant for employment because of
race, color, religion, sex or national origin. Provisions to effectuate this prohibition must
be included in all construction contracts exceeding $10,000.
b. Section 3 of the Housing and Urban Development Act of 1968
Requires that, to the greatest extent feasible, opportunities for training and employment
arising from CDBG will be provided to low-income persons residing in the program
service area. Also, to the greatest extent feasible, contracts for work (all types) to be
performed in connection with CDBG will be awarded to business concerns that are
located in or owned by persons residing in the program service area.
c. Minority/Women's Business Enterprise (Executive Orders 11625, 12432, 12138) (24
CFR 85.36 e .
City must prescribe procedures for a minority outreach program to ensure the inclusion,
to the maximum extent possible, of minorities and women, and entities owned by
minorities and women, in all contracts.
3. LABOR REQUIREMENTS
All contracts for construction and installation of equipment must comply with the
following:
a. Davis-Bacon and Related Acts (40 USC 276 (A)-7)
Ensures that mechanics and laborers employed in construction work under Federally
contracts are paid wages and fringe benefits equal to those that prevail in the locality
where the work is performed.
b. Contract Work Hours and Safety Standards Act, as amended (40 USC 327-333)
Provides that mechanics and laborers employed on Federally assisted construction jobs
are paid time and one-half for work in excess of 40 hours per week, and provides for the
payment liquidated damages where violations occur. It also addresses safe and healthy
working conditions.
c. Copeland (Anti-Kickback)Act (40 USC 276c)
Governs the deductions from paychecks that are allowable. Makes it a criminal offense
to induce anyone employed on a Federally assisted project to relinquish any compensation
to which he/she is entitled, and requires all contractors to submit weekly payrolls and
statements of compliance.
d. Fair Housing Standards Act of 1938, As Amended (29 USC 201, et.seq_)
Establishes the basic minimum wage for all work and requires the payment of overtime at
the rate of at least time and one-half. It also requires the payment of wages for the entire
time that an employee is required or permitted to work, and establishes child labor
standards.
In accordance with 24 CFR Part 5, CDBG funds may not be used to directly or indirectly
employ, award contracts to or otherwise engage the services of any contractor or
subrecipient during any period of debarment, suspension or placement of ineligibility
status. Grantees should check all contractors, subcontractors, lower tier contractors and
subrecipients against the Federal publication that lists debarred, suspended and ineligible
contractors. See Internet site at http://www.arnet.gov/epls/.
4. PROCUREMENT
The procurement standards of 24 CFR 85.36 apply.
5. CONFLICT-OF-INTEREST
For the procurement of property and services, the conflict-of-interest provisions at 24
CFR 85.36 and 24 CFR 84.42 apply. This requires the city to maintain written standards
governing the performance of their employees engaged in awarding and administering
contracts. At a minimum, these standards must:
a. Require that no employee, officer, agent of the city or its sub-recipient shall
participate in the selection, award or administration of a contract supported by CDBG if a
conflict-of-interest, either real or apparent, would be involved;
b. Require that grantee or sub-recipient employees, officers and agents not accept
gratuities, favors or anything of monetary value from contractors potential contractors or
parties to sub-agreements; and
c. Stipulate provisions for penalties, sanctions or other disciplinary actions for
violations or standards.
A conflict would arise when any of the following has a financial or other interest in a firm
for award:
a. An employee, agent or officer of the grantee or sub-recipient;
b. Any member of an employee's, agent's or officer's immediate family;
c. An employee's, agent's or officer's partner; or
d. An organization that employs or is about to employ an employee, agent or officer of
the grantee or sub-recipient.
In cases not covered by the above, the CDBG regulations at 24 CFR 570.611 governing
conflict-of-interest apply. These provisions cover employees, agents, consultants, officers
and elected or appointed officials of the city or sub-recipient. The regulations state that
no person covered who exercises or has exercised any functions or responsibilities with
respect to CDBG activities or who is in a position to participate in decisions or gain
inside information:
a. May obtain a financial interest or benefit from a CDBG activity;
b. - Have an interest in any contract, subcontract or agreement for themselves or for
persons with business or family ties.
This requirement applies to covered persons during their tenure and for one year after
leaving the city or sub-recipient entity.
Upon written request, exceptions to these provisions maybe granted by HUD on a case-
by-case basis only after the city has:
a. Disclosed the full nature of the conflict and submitted proof that the disclosure has
been made public, and
b. Provided a legal opinion from the city stating that there would be no violation of
state or law if the exception were granted.
6. ENVIRONMENTAL REVIEW
The city is responsible for undertaking environmental reviews in accordance with the
Environmental Handbook. The environmental review must be completed before funds
are committed.
7. FLOOD INSURANCE
Section 202 of the Flood Disaster Protection Act of 1973 (42 USC 4106)
Requires that CDBG funds shall not be provided to an area that has been identified by the
Federal Emergency Management Agency (FEMA) as having special flood hazards unless:
a. The community is participating in the National Flood Insurance Program, or it has
been less than a year since the community was designated as having special flood
hazards; and
b. Flood insurance is obtained.
8. DISPLACEMENT, RELOCATION, ACQUISITION AND REPLACEMENT OF
HOUSING
Projects involving acquisition, rehabilitation or demolition maybe subject to the
provisions of the Uniform Relocation Act.
EDA 3.11.09
7. Recommend that the City Council enter into a Listing Agreement with Nelson
Real
A. REFERENCE AND BACKGROUND:
The City currently owns approximately 30.5 buildable acres within the Monticello
Business Center industrial park. In the past City Staff has been the means for marketing
and attracting potential new businesses. However, due to the change in the economy,
discussions have occurred regarding changing the current approach to consider entering
into a listing agreement with a qualified commercial broker. The Marketing Committee
has discussed this option at several of their meetings.
It is the Marketing Committee's opinion that at this point in time; the City should explore
a variety of marketing venues that will result in as much exposure as possible to
commercial brokers and potential industrial/commercial end users. The committee
directed staff to contact several commercial brokers and set up "interview" meetings with
these brokers. Staff contacted commercial brokers including, Northmarq, NAI Welsh,
Nelson Realty, and CBRE. Everyone except Nelson Realty declined to participate. The
brokers stated they had a wide variety of land listings and really just needed to focus on
their current inventory at this time.
Nelson Realty was interviewed by the Marketing Committee. Nelson Construction, which
is a part of Nelson Realty, completed several construction jobs within the City and seems
to have a good pulse on the community.
B. ATTACHMENTS:
1. Proposed Listing Agreement between Nelson Realty and the City of
Monticello
C. STAFF RECOMMENDATION:
City Staff and Andy Larson, with Nelson Realty, have worked in great coordination to
draft a fair and reasonable Listing Agreement. The Marketing Committee reviewed the
proposed Listing Agreement and recommended a few changes that are shown as
underlined and in bold in the attached document. Staff and the Marketing Committee are
recommending that the EDA approve and recommend that the City Council enter into a
Listing Agreement with Nelson Realty. It appears that Nelson Realty is willing to work
with the City in a fashion that will allow some flexibility to ultimately get a deal done in
a positive manner.
D. ALTERNATIVE ACTION:
1. Recommend the City Council approve entering into a Listing Agreement with Nelson
Realty.
2. Recommend the City Council continue to have City Staff solely market city owned
land and thus not enter into a Listing Agreement at this time.
3. Table action and direct staff to complete more research.
2
LISTING AGREEMENT
THIS AGREEMENT is made and entered into this 10th day of March, 2009 by and
between CITY OF MONTICELLO. (hereinafter referred to as "Owner"), and NELSON
REALTY & DEVELOPMENT, LLC., a Minnesota limited liability company (hereinafter
referred to as "Agent").
WITNESSETH:
WHEREAS, Owner is the fee simple owner of a property located at Section 10,
Township 121, Range - 025 Otter Creek Crossing 3~ Addition Outlots A, B, C, & E
(Approximately 43 Acres Combined), County of Wright, State of Minnesota, (the "Property"),
The aforesaid land is hereinafter sometimes referred to as the "Subject Property". Refer to
Attached "Exhibit B" 2-page Property Survey.
WHEREAS, the parties hereto desire to enter into an agreement whereby Owner appoints
Agent as Owner's sole and exclusive agent to sell the Property subject to and in accordance with
the terms, covenants, conditions and agreements herein contained.
NOW, THEREFORE, in consideration of the foregoing, and in consideration of the
mutual terms, covenants, conditions and agreements herein contained, the parties hereto agree as
follows:
1. Employment of Agent. Owner hereby retains Agent as its sole and exclusive agent
to sell the Property upon the conditions and for the term and compensation hereinafter set forth.
Nothing herein shall require Owner to execute any purchase agreement.
2. Term of Agency. The term of this Agreement shall commence on the date hereof
and shall terminate on the 24~' day of March, 2009. Notwithstanding the foregoing, this
Agreement maybe terminated in accordance with the provisions of Paragraph 9 hereof. After the
24a' day of March, 2010, this agreement may be cancelled by either Agent or Owner upon 30
days written notice by either party . In the event
that Andrew Larson the listing Broker's employment contract is terminated with Nelson Realty &
Development, LLC the Owner reserves the right to cancel this agreement.
3. Acceptance of A encv and Duties of Agent. Agent hereby accepts such agency
and agrees to perform all services appropriate and necessary for the sale of the Property.
(a) Use its best efforts to procure buyers for such the Property and to assist
Owner (to the extent requested by Owner) in the negotiation of all
purchase agreements for the Property. Agent shall not have the right to
sign any purchase agreement or agreement to sell on behalf of Owner or to
cancel or amend any purchase agreement on behalf of Owner; and it is
expressly understood that all purchase agreements, amendments to
purchase agreements, cancellations of purchase agreements, or other
agreements in connection therewith, shall be submitted to Owner for
Owner's approval and be executed by Owner.
(b) At the expense of Agent to maintain an adequate staff sufficient to satisfy
the needs of Owner for the sale of the Property.
(c) Advertise and promote the sale of the Property by signs and engaging in
other appropriate forms of advertising, all of which shall be subject to the
mutual agreement of Owner and Agent as to its extent, form and content,
and as to the sharing of the cost of such advertising.
(d) Employ the services of other brokers in selling the Property and cooperate
with other brokers and Owner. Fees paid to other brokers shall be in
accordance with the provisions of paragraph 7 hereof.
(e) Assist the Owner with economic incentive package analysis and
negotiations with buyers.
4. Sale Price. The Sale Price shall be as determined by Owner. The asking sale price
for the Property shall be three dollars per square foot of developable land as defined in attached
exhibit C. All purchase agreements shall comply with the sale price determined by Owner unless
Owner agrees to a sale amount less than the amount in the then marketed sale price. Buyers shall
pay such other charges as are called for by the form of the purchase agreement adopted by
Owner.
5. Exclusiveness of A ency. Owner, during the term of this Agreement or any
extension thereof, shall not authorize any other person, firm or corporation to negotiate or act as
agent with respect to any sale of the Property. Owner will not permit any person, firm or
corporation, other than Agent, to have or maintain any "For Sale" signs in or about the Property
and will keep Agent informed concerning inquiries.. for sale by any person, firm or corporation.
6. Forms. Owner reserves the right to adopt, change or amend purchase agreement
forms and such other forms as it may deem appropriate or necessary, and Agent shall use such
forms only as authorized by Owner. Such forms shall be modified upon the requirement of
Owner.
7. Compensation of A~gnt. Owner shall pay Agent the following compensation for
its services:
(a) On purchase agreements accepted and executed by Owner during the term
of this Agreement and for which a closing occurs, the commission rate
shall be:
(4%) of the gross sales price before economic incentives are
applied.
-2-
(b) In all co-brokerage situations, where a broker or Agent other than Andrew
Larson or Cheree Eggen represents the Buyer and the Buyer and Owner
execute a purchase agreement and for which a closing occurs, the co-
brokerage commission rate shall be:
(6%) of the gross sales price before economic incentives are
applied.
The commissions shall be payable in accordance with the provisions of
this Paragraph 7.
(c) Commissions shall be due and payable at the time of closing, and are not
considered earned until closing occurs.
(d) Agent shall negotiate all commissions with co-brokers and shall
indemnify, defend and hold harmless Owner with respect to any claim in
excess of the amounts payable to such co-broker under the provisions of
paragraph 7 hereof. Owner agrees to be responsible to Agent for any loss
or expense incurred from claims, demands, suits or other legal proceedings
which result from any agreement made or alleged to have been made by
Owner with a real estate broker or agent that is contrary to the terms of this
Agreement.
8. Registration and Proposals for Prospects. Agent shall register all prospective
buyers of Agent or a co-broker with Owner and Owner will be copied immediately on all
correspondence with prospective buyers. Agent shall register all prospective buyers by informing
Owner (i) the name and address of such prospective buyer, and (ii} the proposed terms and sale
price. The registration of a prospective buyer shall be contained in the next quarterly report (as
described in Paragraph 10 hereof) filed after Agent's first contact with such prospective buyer.
9. Termination. Notwithstanding any other provision of this Agreement, the
agreements herein contained shall be terminated and the rights and obligations of the parties
hereto shall thereupon cease, and any accounting shall be made by Agent to Owner upon any of
the following circumstances or events:
(a) Consummation of a bona fide sale of the Property and delivery of
possession of the Property to the new owner.
(b) Taking under eminent domain or other like proceedings.
(c) Agent is adjudged a bankrupt or Agent makes an assignment for the
benefit of its creditors or seeks relief from its creditors under any
insolvency act.
(d) Mutual agreement of Owner and Agent expressed in writing.
-3-
(e) Expiration of the term without extension or renewal.
10. Post Termination Ri is of Agent. Agent shall have the right to a commission on
any purchase agreement negotiated by Owner with a prospective buyer of Agent registered with
Owner during the last one hundred eighty (180) days of this Agreement in accordance with
Paragraph 8 hereof, provided that such registered prospective buyer enters into a purchase
agreement to buy the Property within sixty (60) days after the expiration of the term of this
Agreement, and such agreement is accepted and executed by Owner within forty-five (45) days
thereafter, and closing occurs.
11. Notices. Notices hereunder shall be valid if mailed by registered or certified mail,
postage prepaid, addressed as follows:
If to Owner: City of Monticello
Megan Barnett, Economic Development Director
505 Walnut Street, Suite 100
Monticello, MN 55362
Ph: 763-271-3208
Fax: 763-295-4404
If to Agent: Nelson Realty & Development, LLC.
2 Division Street E. Suite 201
Buffalo, MN 55313
Attn: Andy Larson
Ph: 763-682-1818
Fax: 763-682-3053
or to such other address with respect to the party as such party shall notify the other parry hereto,
in writing, as above provided.
12. Assi ent. Agent shall be prohibited from assigning its interest in this
Agreement, or any portion thereof, without the written consent of Owner. Owner may assign its
interest in this Agreement without the consent of Agent.
13. Entire Agreement. This Agreement represents the entire agreement of the parties
hereto, and supersedes all prior agreements, whether written or oral, between them with respect
to the subject matters of this Agreement. This Agreement maybe modified or amended only by a
subsequent written agreement executed by each of the parties hereto.
14. Advertising and Promotional Expenses. Owner and Agent agree to advertise and
promote the Property according to Exhibit A attached hereto and made a part hereof.
-4-
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
the day and year first above written.
City of Monticello
(Owner)
By
Its Mayor
Its Economic Development Director
By
NELSON REALTY & DEVELOPEMNT, LLC.
(Agent)
By
Its Andrew Larson, Broker
-5-
EXHIBIT A
ADVERTISING AND PROMOTIONAL EXPENSES
Owner and Agent agree that the expenses arising from advertising and marketing promotion will
be borne as follows:
1. Advertising. Agent agrees to list the property on the Minnesota Commercial
Association of Realtors commercial property exchange database, Wright County Economic
Development Partnership web page and the Nelson Building & Development real estate web
page at its sole cost and expense. If Owner and Agent agree additional advertising is required the
advertising cost will be cost shared between Owner and Agent.
t~~.
2. Marketing Materials. Agent will develop a one page colored marketing brochure
for the Property, such materials shall be approved by Owner prior to printing and distribution or
publication. Owner shall provide Agent with property offering package that includes current
demographic information, community profile, and property fact sheet.
3. Signage. Agent will display real estate sign on the subiect property in
compliance with all applicable City Codes. It is anticipated that Agent, Owner, and Edwin
Chadwick will enter into a separate sign agreement in order to maximize advertising
opportunities. ~ °: + ,,~'la ^::..cl i,µ ° °.,~°,.°a ~~„ „~° „+ ° •+~, r v
~ ~£.,~ ~ 4 V 11 Y V V1IGLSV . .
zR-*c~ri~S~ i=~rr'az-ir~'F~xzrcl~&~'k~~ ~ ,c~c--re~fe~*cv-cc~t$E-l~e~-]~38.
4. Periodic Mailings. Agent shall send marketing materials on a regular basis to the
brokerage community and shall keep the brokerage community informed of available Property
and the asking price.
5. Agent shall distribute at its sole cost and expense the marketing materials and
accompanying data as necessary.
6. Agent agrees to participate with the Owner in (~ the MNCAR Expo. Agent
agrees to provide a trade show booth and pay $300 of the $1000 registration fee. Owner agrees to
$700 of the required registration fee. ; ; °° *^ ~ ~ ~ ~ *~° °^~* ^~ ~ ~°~ ° * .Owner
and Agent may determine additional conferences and trade shows are appropriate to
participate in during the length of the agreement Costs associated with participating in
conferences and trade shows will be shared between Agent and Owner.
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9. Report from Executive Director.
General:
1. The City Council will be holding a Budget workshop on Monday, March 9, 2009 to discuss how the
City will address reduced assistance from the State. Staff is pro-actively reviewing individual
department budgets to determine appropriate adjustments.
IEDC: Attached is the IEDCMarch agenda.
Business Retention: The Business Newsletter is under production and is anticipated to be distributed
in early April. Staff is also researching a Business Retention & Expansion program through the
University of Minnesota extension services. Upon further research, staff will bring the item forward for
EDA consideration.
Business Initiative: Over 100 direct marketing pieces were sent out to commercial realtors, medical
related companies, and fastest growing private companies in MN.
Housing Initiatives:
The City of Monticello was awarded the NSP Grant through the Minnesota Housing Finance Agency.
Staff will be required to complete training and contracts will need to be signed prior to any distribution
of funds occurs. MHFA anticipates this will occur at the end of March to the beginning of April.
Informational Handouts:
Future Agenda Items: The next EDA meeting will be Wednesday, April 8, 2009. This is the EDA's
Annual meeting, election of officers will occur and financial information will be provided.
Upcoming agenda topics (not necessary on the next agenda) will include: 1.Transformation Loan 2.
Consideration to review Development Agreement /Private Contact administrative costs and
fees/deposits (discussion after TIF analysis is completed).
AGENDA
MONTICELLO INDUSTRIAL & ECONOMIC DEVELOPMENT COMMITTEE
Tuesday, March 3, 2009
7:00 a.m., Boom Island Room
IEDC Mission Statement:
To increase the tax base and the number of liveable wage-level jobs in Monticello by promoting
industrial and economic growth and working to maintain a desirable business environment.
MEMBERS: Chair Lynne Dahl-Fleming, Vice Chair Don Roberts, Bill Tapper, Dick Van Allen, Don
Roberts, Dan Olson, Zona Gutzwiller, Patrick Thompson, Rich Harris, Wayne Elam,
Marshall Smith, Charlotte Gabler, Elaine DeWenter, Sandy Suchy, Glen Posusta, and
Clint Herbst
1. Call to Order
2, a. Approve the Joint IEDC/EDA January 20, 2009 minutes
b. Approve IEDC February 3, 2009 minutes
3. Economic Development Director Update
4. Reports:
a. City Update
b. Fiber Optic
c. Chamber
IEDC Planning Groups
a. Transportation (Bruce Westby will be present to review I-94 improvements)
b. Business Retention/Communication (Fall IEDC/EDA Event)
c. Land Use Planning
Adjournment. (8:30am)
Economic Development Director Updates:
a. General:
1. Sign Ordinance: The Planning Commission will be holding the required
public hearing at their March 10, 2009 meeting
2. City Council: The City Council revisited the River Street closing pilot
project at their February 9, 2009 meeting. The City Council directed staff
to obtain additional traffic counts within the downtown. The item will be
placed on the April 13, 2009 regular agenda for further action.
3. EDA: The EDA met with the City Council to review in detail the proposed
Business Subsidy documents. The City Council will be asked to adopt a
City wide Business Subsidy Criteria document. This document will set the
parameters for how the City determines subsidy (i.e. reduction in fees, or
loans) should be distributed. The EDA and City Council also made
revisions to the Greater Monticello Enterprise Fund (GMEF) and created a
new revolving loan fund, Monticello Small Cities Economic Development
Set-aside Fund. It is anticipated that the City Council will hold the required
public hearing at their March 23, 2009 meeting.
4. Planning Commission: See attached draft agenda.
The Planning Commission reviewed the Transportation Plan and held the
required public hearing at their February meeting. A favorable
recommendation was forwarded to the City Council along with important
comments and concerns. The City Council will be reviewing the
Transportation Plan at their March 9, 2009 meeting.
5. TIF Analysis Project: Rusty Fifield will attend the April EDA to present
the final results of the TIF Analysis & Management Plan project.
b. Committees:
1. Marketing Committee: The Marketing Committee directed staff to attend the
March Health Care & Medical Properties Conference hosted by the MN Real
Estate Journal. Based on attendance and perceived effectiveness, the City may
elect to participate in a future conference. Staff sent out marketing postcards to top
25 small-growing companies, medical related industries, and commercial brokers.
The City Council will be reviewing the proposed listing agreement at their March
23, 2009 regular meeting. Staff will begin working on establishing a breakfast
meeting with commercial brokers in order to provide valuable information
regarding available land in Monticello, which will hopefully generate future end
users.
2. Higher Education Committee: The benchmark meeting with SCSU students is
scheduled for March 24, 2009. The purpose of the meeting is to check in with the
student group and review preliminary findings.
c. Business Communications:
1. Business Newsletter: Staff is hopeful the business newsletter will be published mid
March.
2. Related newsletters/articles:
d. Future Meeting Dates:
1. Next Meeting: Tuesday, April 7, 2009
2. EDA: April 8, 2009. Rusty will present the findings of the TIF Analysis &
Management Project. The City Council will be invited to participate in this
presentation.
IEDC 3.3.09