HRA Agenda 06-09-1999
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AGENDA
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, June 9, 1999 - 7:00 p.m.
City Hall
MEMBERS: Chair Bob Murray, Vice Chair Damn Lahr, Brad Barger, Steve Andrews, and Dan
Frie.
COUNCIL LIAISON:
Brian Stumpf.
ST AFF:
Treasurer Rick Wolfsteller, Executive Director Ollie Koropchak, and Recording
Secretary Nancy Whalen.
GUEST:
Bill Grassl, Domino's Pizza and Harold Jesh, Harold A. Jesh, LLC.
1. Call to Order.
2. Consideration to approve the May 12, 1999 HRA minutes.
3. Consideration of adding agenda items.
4.
Consent Agenda.
A. Consideration to adopt a resolution approving the modification of TIF Plan for
TIF District No. 1-22 and to adopt a resolution approving the Pledge Agreement
between the HRA and City.
5. Consideration of items removed from the consent agenda for discussion.
6. Consideration to swap HRA lot and Grassl lot on West Broadway.
7. Consideration to hear a presentation in concept form for development ofa multi-housing
facility and consideration of interest to provide TIF assistance.
8. Consideration to authorize payment of the past due water utility bill and authorize change
oflocks for the HRA property located at 3 Walnut Street.
9. Consideration to adopt a resolution recommending the City Council authorize city staff to
begin preparation for acquisition of the Goeman/Chadwick properties for industrial
development.
10. Consideration of an update relating to the non-certification and tax increment payments
for TlF District No. 1-18 and authorization of action if so determined.
11.
Consideration to authorize payment of monthly HRA bills.
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12.
Consideration of Executive Director's report.
13. Consideration of Committee Reports:
a) City Council - Brian Stumpf.
b) Community Center - Bob Murray
c) MCP - Steve Andrews
d) Marketing - Brad Barger and Darfin Lahr
e) North Anchor - Bob Murray and Dan Frie.
14. Other Business.
15. Adjournment.
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MINUTES
MONTICELLO HOUSING ANn REDEVELOPMENT AUTHORITY
Wednesday, May 12, 1999 - 7:00 p.m.
Members Present:
Chair Bob Murray, Brad Barger, Darrin Lahr, Steve Andrews, and
Dan Frie.
Council Member Absent:
Brian Stumpf
Staff Present: Executive Director Ollie Koropchak.
1. Call to Order.
Chair Bob Murray called the HRA meeting to order at 7:00 p.m.
2.
Consideration to approve the April 14, 1999 HRA minutes.
A MOTION WAS MADE BY BRAD BARGER AND SECONDED BY STEVE
ANDREWS TO APPROVE THE MINUTES, AS WRITTEN, OF THE HRA MEETING
OF APRIL 14, 1999. Motion carried unanimously.
3.
Consideration of adding agenda items.
Executive Director Ollie Koropchak asked to add two items to the agenda.
a. Consideration to swap HRA lot and Grassl lot on West Broadway.
b. Authorize attorney Daniel Greensweig to prepare a pledge agreement in which thc
HRA will earmark funds for the Community Center.
4. Consent Agenda.
None
5. Consideration of items removed from the consent agenda for discussion.
None
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6.
Consideration to review HRA letter of 30-dav notice to terminate House Lease for 3
Walnut Street for authorization to terminate Lease.
Executive Director Ollie Koropchak reviewed a brief background on this item. At the
HRA meeting of April 14, 1999, she reported that Jarmy and Tammy Hacker, the tenants,
were delinquent in their rent and there had been complaints regarding the debris in the
yard. A letter was sent on April 26 regarding the 30-day notice to move out, effective
May 31 unless the past due amount of $725 was received by May 1. After contact from
Jarmy Hacker, the HRA chair suggested that the tenant be invited to the May meeting and
thus allowing the commissioners a voice in the decision to terminate.
Tammy Hacker and her mother, Erika, were present at the meeting. Ms. Koropchak asked
Ms. Hacker if she wished to address the commissioners. Ms. Hacker stated that she had
no idea that they were delinquent in their rent as she had been asked to leave the house and
had been out since mid-March. She had just recently returned as she and her children had
no other place to live. It was at that point that she found the letter regarding the delinquent
rent and debris in yard. She stated the cars were Jaramy's and she had asked him to leave
and take the cars with him. She told the HRA commissioners that she had applied to
WCCA (Wright County Community Action) for help in paying her back rent. She will
hear on Thursday, May 13, 1999, if they will help her. She is currently working two jobs
and feels that she can pay her rent with help for the delinquent rent.
Steve Andrews asked Tammy what she wanted the lIRA to do.
Tammy felt that by June she would be back on track.
Darrin Lahr and Brad Barger stated that they wanted to see it work. Darrin asked Ms.
Koropchak to work out a payment schedule.
Bob Murray felt that the BRA should terminate the current lease and write a new lease
with just Tammy's name on it since the old lease has Jaramy's name on it also.
Steve Andrews asked if she would be able to cover other expenses. Tammy stated that
WCCA will work with her.
A MOTION WAS MADE BY BRAD BARGER AND SECONDED BY STEVE
ANDREWS TO TERMINATE THE CURRENT LEASE AS OF MAY 31,1999, AND
ISSUE A NEW LEASE AS OF JUNE 1, 1999, IN TAMMY HACKER'S NAME ONL Y.
SUBJECT TO DELINQUENT RENT PAID IN FULL. Motion carried unanimously.
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HRA Minutes. 5/12/99
Consideration to adopt resolution approving decertification of TIF District No 1-8.
Ms. Koropchak reviewed this item with the HRA. She stated that NSP
TIF District No. 1-8 was approved January 23, 1989 and certified as an Economic District
on October 18, 1989. The life duration of an Economic District established in 1989 is 10
years from date of approval or 8 years from date of receiving first tax increment.
After meeting with Rod Bunting, Tax Specialist from Wright County Auditor's Office, it --
was decided to adopt a resolution approving decertification of a TIF District in all cases.
A copy of the resolution will then be sent to the Auditor's Office.
Brad Barger asked whether or not the HRA could keep a TIF District open. Ms.
Koropchak stated that she would not advise it. She felt post-1990 districts should be put
back on the tax rolls as the HRA has limited uses of the funds.
A MOTION WAS MADE BY STEVE ANDREWS AND SECONDED BY DARRIN
LAHR TO ADOPT A RESOLUTION APPROVING DECERTIFICATION OF TIF
DISTRICT NO. 1-8. Motion carried unanimously.
3a)
Consideration to swap HRA lot and Grassl lot on West Broadwav.
Ms. Koropchak stated that at the May 10, 1999 Council meeting, Bill Grassl, owner of
Domino's Pizza and the vacant lot along West Broadway, asked the Council if the City
was interested in purchasing a 6 foot strip of his parcel of the south side of West
Broadway. The City would then have the opportunity to create a walkway between
business storefronts and the rear private/public parking lots. This would be consistent
with the Downtown and Riverfront Revitalization Plan. However, the City Council tabled
any action until Mr. Grassl met with the HRA regarding the possibility of swapping the
HRA lot for a lot Mr. Grassl owns on West Broadway.
Mr. Grassl stated that he was looking to build downtown as his business has own grown
its present location. He is looking to build a one story building and felt that parking was
better on the north side of the street.
Ms. Koropchak stated that the DA T preferred two stories and perhaps he could rent out the
top.
Brad Barger asked if the property had been appraised and Mr. Grassl stated that it had not
been appraised.
Darrin Lahr asked if the Councilor DA T had addressed the issue of a single story
building. It was stated that they had not addressed this issue.
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HRA Minutes - 5/12/99
Steve Andrews requested input from the City Council and DAT before making a decision.
Brad Barger asked when Mr. Grassl wished to start construction and Mr. Grassl stated that
he had wanted to start this summer.
Ms. Koropchak asked Mr. Grassl if he was looking for the HRA to give a definite answer.
Mr. Grassl asked if there were certain conditions the HRA wanted met before they would
consider a swap.
Dan Fric stated that the HRA would like input from the North Anchor Committee, DAT,
and the Council before making a decision. It could be brought up at the next HRA
meeting.
A MOTION WAS MADE BY BRAD BARGER AND SECONDED BY DARRIN LAHR
TO TABLE CONSIDERATION OF SWAPPING HRA LOT AND GRASSL LOT ON
WEST BROADWAY UNTIL THE JUNE HRA MEETING TO ENABLE THE HRA
MEMBER TIME TO TALK TO OTHER COMMITTEES. Motion carried unanimously.
8.
Consideration to discuss HRA Goals and Obiectives for 1999.
Ms. Koropchak stated that although the HRA is waiting for direction from the City
Council, she wanted the HRA to start looking at and discussing their goals and objectives.
Ms. Koropchak stated that the City was looking at reconstructing Walnut Street. When
the district was created, it was the intent to use part of the increment for reconstruction of
Walnut Street or the elements of benches, trees, decorative lighting, etc. The HRA needs
to discuss whether or not it wishes to earmark dollars for Walnut Street or its added
elements. She also discussed the letter from Dan Greensweig stating that a proposed new
legislation would prohibit earmarked dollars from being used for recreational, cultural, and
social publicly owned facilities. Monies that were previously pledged would not be
affected.
Steve Andrews asked what would happen if the HRA did not have a pledge agreement.
Ms.Koropchak stated it was unadvisable for the HRA to give monies for the community
center unless an agreement was executed. Dan Greensweig wants the HRA to authorize
preparation of a pledge agreement, a binding contract.
A MOTION WAS MADE BY BRAD BARGER AND SECONDED BY DAN FRIED
TO HAVE DAN GREENSWEIG PREP ARE A PLEDGE AGREEMENT BETWEEN
THE CITY AND THE HRA FOR THE COMMUNITY CENTER. Motion carried
unanimously.
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HRA Minutes - 5/12/99
Discussion was held by the HRA as to whether or not they wanted TIF dollars should be
used for streetscape. It was the general consensus that TIF dollars should be used to bring
in more businesses or buying property. The HRA would like direction from the Council.
9. Consideration of an update on the tax increment reimbursement for TIF District No. 1-18.
Ms. Koropchak gave an update on this item. She stated that although the request for
certification to the County was dated March 21, 1995, the district was never certified as
requested. According to preliminary information, it appears the 1999 tax increment is
sufficient to pay RDI the amount due them to date according to the Contract.
Ms. Koropchak stated that it was felt that the HRA should not amend their contract at this
time with RDI as the County could say they do not have the money coming.
Bob Murray stated that he had spoken to RDI and they will be sending a letter to the HRA
regarding this matter. The HRA will wait for the letter. No other action was taken.
10.
Consideration to authorize pavment of monthly HRA bills.
No action needed.
11.
Consideration of Executive Director's Report.
Ms. Koropchak reviewed the Executive Director's Report. It was again stressed that
confidentiality was necessary regarding potential business inquiries. It was stated that
when a business wants to relocate, they usually want to do so immediately. They don't
want to hear about what the City will do for them in the future. They nced things in place.
There was concern about our procedure for new industries. Our procedure is morc
complicated. Areas such as Big Lake and Anoka make it very casy for ncw industries to
relocate in their area.
12. Consideration of Committee Reports:
a. City Council - Brian Stumpf - No Report
b.
Community Center - Bob Murray statcd that there were 43 applicants for the
Community Center Director's position. It was narrowed down to 12 and then
again down to 6. After interviewing the six applicants, the position was offered to
Kitty Baltos. Ms. Baltos accepted the position. The Construction is on schedule.
Currently the Community Center Committee is working on what to do with the
plaza area.
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HRA Minutes - 5/12/99
c.
MCP ~ Steve Andrews stated that the MCP is currently working on upcoming
special events.
d.
Marketing _ Brad Barger and Darrin Lahr stated that the Marketing Committee has
not met recently.
e.
North Anchor - Darrin Lahr and Dan Frie stated that the committee is currently
working on defining boundaries. The long range plans defined the boundary of the
North Anchor at bounded on the east by T.H. 25, the south by County Road 75
West (West Broadway), west by Linn Street including Block 62, and the north by
the Mississippi River. Short term plan to be defined at the next meeting. Darrin
Lahr was concerned about being pushed by the TIF District.
13. Other Business
14. Adjournment.
A MOTION WAS MADE BY DARRIN LAHR AND SECONDED BY BOB MURRAY
TO ADJOURN THE HRA MEETING AT 9:00 P.M. Motion carried unanimously.
Nancy Whalen, Recording Secretary
Chair, Bob Murray
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HRA Agenda - 6/9/99
4.
Consent Agenda.
A.
Consideration to adopt a resolution approving the modification ofthe TlF Plan for TlF
District No. 1-22 and a resolution approving the Pled~e Agreement between the HRA and
City.
A. Reference and background:
At the May 12 HRA, the commissioners authorized preparation of a binding contract, a
Pledge Agreement between the HRA and City. This document in lieu of the bill passed
which prohibits the use of TlF for the construction of social and recreational facilities.
The bill will prohibit the future use of TIF to build ice arenas and community center
facilities. A binding contract's effective date is January 1,2000. Initially, the proposed
effective date was July 1, 1999.
Since the HRA's motion of March 1998 only earmarked an annual TIF contribution in the
amount of$11,250 for the community center, the lIRA attorney advised the HRA to
modify the TIP Plan and to approve a Pledge Agreement between the HRA and City. The
Agreement is the binding contract. Additionally, the Council will be requested to adopt
two resolutions. This will be on the Council agenda of June 14. Please note the use of
TlF is associated with the construction of the community center and not to subsidize city
hall.
B. Alternative Actions:
1 a. A motion to adopt a resolution approving a modified Redevelopment Plan for
Central Monticello Redevelopment Project No.1 and a modified TIP Plan for TIF
District No. 1-22.
1 b. A motion to adopt a resolution approving Tax Increment Pledge Agreement by
and between the City of Monticello, Minnesota, and the Monticello HRA.
2a. A motion to deny adoption of a resolution approving a modified Redevelopment
Plan for Central Monticello Redevelopment Project No. I and a modified TlF Plan
for TIP District No. 1-22.
2b. A motion to deny adoption of a resolution approving Tax Increment Pledge
Agreement by and between the City of Monticello, Minnesota, and the Monticello
HRA.
3.
A motion to table any action.
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c.
Recommendation:
HRA Agenda - 6/9/99
Recommendation is Alternative Nos. la. and lb.
D. Supporting Data:
Resolutions for adoption and cover letter.
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MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
RESOLUTION NO '_
RESOLUTION APPROVING A MOPIFIED REDEVELOPMENT PUN
FOR CENTRAL MONTICELLO REDEVELOPMENT PROJECr NO.1
AND A MODlFIBP TAX INCREMENT PLAN
FOR TAX INCREMENT Fl~'ANCING DISTRICT NO. 1..22
WHEREAS, the Montics:llo Housing and Redevelopment Authority ("Authority") cu.rrently
administers itS Central Monticello RcQevclopm.em Project No. I ("Project") bna Redevelopment
Plan ("Project Plan") therefor and Tax fncremem Financing District No. 1-22 ("TIF Disulct")
within the Project and a Tax Increment Financing Plan ("TIF Plan") therefor. all pursuant to
Minneliota Statutes, Sections 469.001 to 469.047 ("BRA ACt") and Minnesota Statutes, Sections
469.174 through 469.179 ("TlF Acf"). and
WHEREAS. the Authority has detenninc:d a ne~ to modify the Project Plan and the TIF
Plan for TlF DiStrict No. 1-22 to desigrwc the use of tax lDcrement revenues from the TlF District
clJITenuy budgeted within the TIF Plan for the: purposes set fonh in a Tax Incrernetu Pledge
Agreement (the "Agreement'") between the AuthoritY and the City of MonticellO (the "CIty"); and
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WHEREAS, under S~ction 469.175, subd. 4 ot the TIF ACt, the AUthority 15 authorized to
modity the Tlf Plan without the notice and "pproviil proc~ures requu-c:d for approval of the initial
plm if the modification does not involvl!:: reduction or enlarg~t of the geoaraphic area of the
district, increase in the amount of bOnded indebtedness to be incwred, including a determination to
capitalize interest on debt if that determination was not a part of the original plan, or to increase or
decre:l.Se the amount of interest on the debt to be capitalized. increase in the portion of the captured
t:lX. capacity to be retained by the: Authority, increase in tOtal estimated tax increment expenditures
or designauon of additional propeny to be acquired by the Authority; and
WHEREAS, the Authority has dctennincd a need to modify the description of tax
increment expenditures without increasing the totw estimated budiet or total bondc:d indebtedness
in the: TlF Plan. and a need to clarify and modify the plan objectives and specific development
acti vities.
NOW, THEREFORE. BE IT RESOLVED by the Board of Commissioners of me
Monticello HousinS and Redevelopment Authority as follows:
1. The Project Plan. the TlF Plan, and the budgetS contained therein are hereby
modified to incorporate the ~xpenditute of up (0 $11,250 per year commencing August 1. 2000 and
ending no later than Februaxy I, 2024. such ex.penditure to be made in the form of payments to the
City for the purpose of paying or rei.mhwsing redevelopment cOStS associated with. the construction
of a community center and all in accordance with the Agreemem.
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2. The Project Plan and the TIP . Plan are in no other way modified and the budgets
contained therein are not increased by this modification.
DJG-16S940
MN'19Q.78
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3. All actions taken by ALlthority Staff and consultants With respect to this modification
are hereby approved and ratific!d.
4. The AuthoIity's approval of trns modification is contingent upon the adoption by the
City Council of a resolution indicating that body's apPJ"oval of the modification.
Approved by the Board of Commissioners of the Monl1cello Housing and Redevelopment
Aut!1ority this _ day of . 1999.
Chair
ATI'EST:
Executive Dir~ctor
DJCH63940
MN 190-78
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MONTICELLO HOUSING AND REDEVELOPMENT AUTIlOlUTY
RESOLUTION NO '_
llESOLUTION APPROVING TAX INCREMENT PLEDGE AGREEMENT
BY AND BETWEEN THE CITV OF MONTICELLO, MINNESOTA AND THE
MONTICELLO HOUSING AND UDEVELOPMENT AUTHORITY
WHEREAS. the Monticello Housing and Redevelopment ALlthority ("Authonry") is
administermg its Cemri1l Monticello Redevelopment Project No.1 ("Project"); and
WHEREAS, within the Project the Authority has created Tax. Increment Financing DlsmCt
No. 1-22 (thr: !'TIF Disuict"); and
WHEREAS, the Authomy has reviewed a Tax Increment Pledge Agreement (the
"Agreement") between the Authority and the City of Monticello (the: "City") specifying the
respectlve obligations afme panies; and
WHEREAS, the Board of Commissioncnt of the Authority has detc:nnined thl:lt it is in the
be~t interests of the: Authority to e:nter into the ContrliCt;
NOW, THEREfORE. BE IT RESOLVED by the Board of Conunissionas of the::
Monticello Housing and Redevelopment Authority as follows;
1. The Agr~ment is her~b)' approved in subsuuuially the form p~sented [0 me
Authority on this date. subject 10 modifications that do not mOlwrially altcr the nature of the
transaction. which are approved by the Chau and Execl1tive Direc[or; provided that execution of the
documems by such officials shall be: conclusive evidence of such approval.
2. The proper Authority officials arc aumotlzcd and directed to execute the Agreement
on behalf of the Authority and to carry oyton behalf of the Authority the Authority's obligations
thereunder.
3. The proper AUthoritY officials are autho.tUed [0 ex.r:cute any rcJatecJ ccniticatcs or
documents necessary to carry out the contemplated under the Agreement. all subject to the terms
and condinons of the Agreement.
Approved by the BOilI'd of Commissioners of tbe Monucello Housing and Redevelopment
Authority this _ di:lY of . 1999.
Chair
A 1TEST;
Executlve Dm~ctor
WG.,l63928
MN:j.90-78
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TAX INCREMENT Pl.-EDGE AGREEMENT
by and between
CITY OF MON11CELLO, MINNESOTA
and
THE MONTICELI~O HOUSING AND REDEVELOPMENT AUTHORITY
THIS AGREEMENT is made an4 entered imo as of the _ day of , 1999, by
i:II1d between the City of Monticello, Minnesotli (the "City"), and tbe Monticello Housing and
Redevelopment Authority (the "HRA").
WHEREAS, the liRA iIIla the City huy/: her~tOforc established the Cc:nU'aJ Monticello
Redevelopmc:nt Project and tax. increment financing dist(ict no. 1-22 (the "TlF District"): and
WHEREAS, the City has entered into a devdopmem agreement dated . 1998
(the "Development Agreement") with the MinneSOta State Annat)' Building Commission pursuant
to which tM Cuy llas agreed toundenakc, In pan at the City's cost, a project, is defined in the
Development AgreemlIDt (the "Projcct"); and
WHEREAS, a ponion of the Project includc:s the construction of a publicly owned facility
used for social, recreational. and conterence purposes (the "Conununity Center"); and
WHEREAS, construction of me Conununity Ce:nter necessiULtes correcting conditions that
allowed. designation of the TJF Dismct as a redevelopmem district. such cOStS including ~
relocation and construction of utilitIes and intdrC=!it costs related thereto in an amount at at least
$281,250 (the ""Redevelopment Co~ts"); and
WHEREAS, the City has requested that the: liRA pro,",ide tax increment assistance from tax.
increment revenu~s derived from the TIF Disuict in order to pay a ponion of the Reaevelopment
COStS Or to reimbW'se the City for payments made as the result of the incurrence of the
Redevelopment COSts; and.
WHEREAS, pursuant to Minnesota StatuteS, Sections 469.176. subds. 4g and 4j all or a
portion of the Redevelopment Cos~ may be reimbUNed by the payment of tax increment revenues
generated by !he TIF Oisnict.
NOW. TIIEREFORE, me City and the liRA mutuWly agree 10 th~ following:
(1) The City will provide the HRA with reasonably iatisfactory evidence that .it has
im,:ulTcd Redevelopment CostS in an amount aI least equal to the amount of tax
iocrerncmt to which the City is otherwi~ entitled On any Payment Date (as
hereinafter defmed) pursuant w this AgreemeOt
(2)
Subject to the tenus and concUtions of this Agreement, the; liRA hereby
pledges [0 pay to the City $5,625 00 each February 1 and August 1 (each
such date a "Payment Date") commencing on August I, 2000 and ending 00
the earlier of the date that the HRA has paid the City an amount equal to the
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DJG.1637S9
MNI90-70
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amount of me Redevelopment Costs (but in no case shall such amount
exceed $281.250) or on FcbNary I, 2024. SLlCh payments shall be made
solely from ana to the extt:1lt of tax increment ~vcmues generated by me
propeny located within the TIF Disuictand legally describ~d i:b
Lot 1. Block and Outlot A. Monticello Mall. according to the
recorded plat thereof, Clty of Monticello, Wright County.
Minnesota
(tht: .-Propeny"). Any payments to the City pursuant to this Agreement are
express!}' subordinated to any pnor pledge of rc"cnues generated by the Propeny
and further subordinated to the Authority's right to retain the first 10 percent of
Tax. Increment received by the Authority during any slx.montb pc:riod prIor [0 a
PaymemDate.
(3) This Agreement )hall be for the sole benefit of the panies. and shall not be
construed to crc:ate any rights in any other person.
[THE ReMAlNDER OF nus PAGE INTENTIONALLY LEFT BLANK]
DJG.lo3789
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IN WIT!'.'ESS WHEREOF. the City ~nd the ERA have caused this Agreement [0 be duly
executed on their behalf and their seals to b:! h~feunto affIxed and such signatures and seals to be
attested, as of the day and year first iibove written.
A TIEST:
City AdmiD..1suator
(SEAL)
A TIEST:
Ex~utive Director
(SEAL)
DJG-16<;789
Ml'Il90-70
CITY OF MONTICEllO, MINNESOTA
Mayor
THE MONTICElLO HOUSJNO AND
REDEVELOPMENT AUTHORITY
President
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Kennedy
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(~raven
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470 P,llsb...ry CenTc.a
200 South Si4rh Sr=
Mmn...poLi>> MN 55402
(Gl:Z) 337-9300 tekphune
(612) 337-9310 f.lA
htrp:/lwww ""nncdl'"graven LOm
DA:"lI[1- J. CREE.'~SWt:IC
Att\lI'lI~y JL L"...
DII'~';I 01.1 (012) ):;7-\12:; 1
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June 3, 199~
Ollie Koropchak.
City Hall
P.G Box 1147
Monticello, MN 55362
BY U.S, MAIL AND FACSiMILE.. (612) 295-4404
Dear Ollie:
Enclosed are ce:nwn documents relalC:l.i to the pledge of taX incte~nt rc:venues from TIF District
Nu. 1~22 to th~ paym\:l1t of certain costs related to the comn1u.niry center. Specifically, YOll will
find:
. 1. a t<.LX incren1~nr plc::dge a~eement mat should be executed by both the HRA and the city;
2. /$0 HRA resolullon approving the pledg~ ll~ccment;
3. 3. City resolutiun approving th~ pledge agreement;
4 :m HRA resolution mouiryin~ the Project Plan and TIF PI:m to reflect the plt:dge agreemenr; and
5. a city teso1l.mon indh,;ating its approval of the plan modifications.
While city councll approval ot'rhis minor modification is not strictly necessary unJer the TIF Act, it
seems prudent to h3ve at leasl i1 recogrlltlon of the councll's mclin<ltion in tllis Ca:lt:, pi::iTticularly
since the councIl will be considenng the Tlf expendnure in Lhe fonn ofrh~ pledge agTeemcnI.
I behev~ that the rest of rh~ documc:nts are seU:explanatol)'. The moSt unponant business pOInt to
remember IS thauhe HRA will make biannual payments 10 the City of$5,625 for reimbursement of
uuhty costs related to the: community center, but th~t these pl:lym~nts (which caIl be handled. as an
ullcr-flJIld transter, lfmore convenient) are to be made only Out ofTIF' from the mall propeny in J..
22 and are subJ~ct to prior pledgeii and Lhe Authority's nght to keep 10% ofmt: TW. From a legal
perspecri VI:::, please remember that these TIF revenut!s can only be used for costs rclatt!u to the
com1Tlunity center ponion of the proJC'ct mJ ;my diSCUSSion of this pledge should b\Jth reflect that
and avoj(j any SLl~~~stion lhar thcTIf is intended to help nsubsidize" city halL
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D1G-163~Sb
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Ollie Koropchak
June 3, 1999
Pa~e 2 of2
Finally, the moditic:mon resoluTions should be kept with the ClTY's TJF and ProjecT plans for fuTLlr~
refenm(;c, whill.:" the pledge agreement i:1Ild iTS ft:solutJons should srmply be kept by the city in
accordance with normal filing practices. I wou.ld appreciate receiving copies of all of these
docL1Tl1ems onc~ they have hc:en approved. and ~xecuted.
If YOlI have any qu~stions, please do not hesitate to call.
Sincerely,
~?
DJG/par .,--
Ends .
Ce. JeffO'Nelll (w/encls)
Oeruus Dakn (w/encls)
DjC-lb3b9b
MI"1!5-5
,4,
v..f?'
.
.
.
BRA Agenda - 6/9/-99
6.
Consideration to swap BRA lot and Grassl lot on West Broadway.
A. Reference and background:
This item was an add-on item to the BRA agenda of May 12. Bill Grassl, Domino's
Pizza, asked the HRA to consider swapping his parcel located on the south side of West
Broadway for the BRA's lot located on the north side of West Broadway. Square footage
oflots are 7,095 and 10,065, respectively. The BRA 1996 appraisal of the northerly
parcel was $37,000 and was purchased for $50,000.
Prior to the liRA meeting, Mr. Grassl inquired of the City's interest to purchase a 6-foot
strip of his southerly lot giving the City the opportunity to create a walkway between the
business storefronts and the rear private and public parking lots consistent with the
Downtown and Riverfront Revitalization Plan. Hearing ofMr. Grassl's interest to swap,
the Council deferred the item to the BRA prior to taking action to acquire the 6-foot strip.
In lieu ofthis being an add-on item to the lIRA agenda of May 12, a motion was made to
table for one month any action to swap parcels requesting input from the City Council,
MCP, DAT, Planning Commission, and North Anchor Committee: Would the Council and
Commissions prefer the liRA to swap their one individual parcel or hold their parcel for
future redevelopment of all the parcels lying to the east bounded by Pine Street?
Council, May 24 - Preferred the HRA hold their parcel for redevelopment of all parcels
lying to the east bounded by Pine Street.
DAT, May 26 - Recommended to swap individual lots for better design possibilities for
the walkway unless the swap would hamper the redevelopment of the lots to the east of
the BRA lot within the timeline of the knock-down rule.
MCP, May 26 _ Recommended not to swap individual lots as could hinder redevelopment
of the BRA and easterly lots to Pine Street. A swap would also limit HRA development
capabilities.
Planning Commission, June 1 - Preferred the HRA hold their parcel for redevelopment of
all parcels lying to the east bounded by Pine Street.
North Anchor Committee, June 2 - Preferred the lIRA hold their parcel for
redevelopment of all parcels lying to the east bounded by Pine Street.
1
.
BRA Agenda - 6/9/-99
B.
Alternative Action:
1.
A motion of no interest to swap the BRA lot and the Grassl lot with a
recommendation the City Council consider purchasing a 6-foot strip of the Grassl
lot to create a walkway from the storefront to the parking lots consistent with the
Revitalization Plan.
2.
A motion of interest to swap the BRA lot and the Grassl lot entering into
negotiations or authorization for a new appraisal ofthe BRA lot and requesting
Grassl obtain an appraisal of his parcel.
3.
A motion to table any action.
C.
Recommendation:
Based on the input of the Council and commissioners, recommendation is for alternative
no. 1. It was suggested the BRA inquire to Steve Johnson's interest in redevelopment or
intent to sell the properties occupied by MCP and Skipper's Pool or interest as an
investor.
.
D.
Supporting Data:
Copy of request for input.
.
2
.
.
.
REQUEST FOR INPUT
Ollie Koropchak, HRA Executive Director
At the May 10 Council meeting, the Council tabled any action to acquire a 6-foot strip of the
Grassl parcel located on the south side of West Broadway until the BRA considered Grassl's
request to swap his south side lot with the BRA's lot lying on the north side of West Broadway.
Mr. Grassl attended the HRA meeting of May 12 and asked the HRA oftheir interest to swap
parcels. This was an add on item to the HRA agenda. The BRA purchased the north parcel from
Barry Fluth in 1996 after the roof collapsed and the building was demolished. This predated the
Downtown Revitalization and Riverfront Plan. Previous discussions have been for the HRA to
control the parcel for future redevelopment ofthe HRA parcel along with the parcels lying to the
east to Pine Street (Highway 25). It appears Council and the HRA both agree to the benefits of a
front to rear walkway on the south and north sides of West Broadway consistent with the Plan.
At the BRA meeting of May 12, the commissioners tabled for one month any action to swap
parcels requesting input from the City Council, MCP, DAT, and North Anchor Committee. Mr.
Grassl prefers the north lot for easier access to Big Lake; however, he indicated he plans to
construct on one side or the other.
INPUT REQUESTED:
Would City Council prefer the lIRA to swap their one individual parcel or hold their parcel for
future redevelopment of all the parcels lying to the east to Pine Street?
I will ask for your input under Other Business ofthe agenda. Next HRA meeting is June 9, prior
to next council meeting.
\0/\
.
.
.
HRA Agenda - 6/9/99
7.
Consideration to hear a presentation in concept form for development of a multi-housing
facility and consideration to interest to provide TIF assistance.
A. Reference and background:
Harold Jesh called the Office ofthe HRA inquiring to the need for multi-housing in
Monticello and the opportunity for TIF assistance. Mr. Jesh previously worked for
Winkelman Building Corporation of S1. Cloud and since formed a limited liability
company. See attached info.
He indicated perhaps 12 to 24 rental units of general housing. Does this mean affordable
housing or market rate housing? He appeared to have no problem with income limits;
however, he appears not to be interested in rental limits which means this would be a
"Housing District" and not a "Qualified Housing District" which exempts the City from
the Local Match ContributionlPenalty. I have no idea as to site or design.
Here are some questions for you to think about:
Does the project meet the "but for" test?
Would the HRA or Council commit to the Local Match Contribution from non-restrictive
funds?
Is there a need for multi-housing? Market rate, affordable, subsidized, rental, owner-
occupied? Will the selected site also remove a substandard area?
The tax-credit housing project presented by Brad Larson awaits approval for funding;
however, the Planning Commission has approved the conditional use permit allowing for
the 28-unit town home development in a R-2 zone. Remember, previously the HRA and
Council gave concept approval for use of TIF, a "Qualified Housing District". The
majority of town homes are 3-bedroom units.
Additionally, the Mayor and Jeff have talked with a developer interested in redevelopment
of parcels along West 6 Street. Last fall, he inquired of the HRA Office and the potential
of TIP assistance. I ran TIF projections and determined the five parcels, although
substandard, did not meet the requirements for establishment of a Redevelopment District.
The initial project consisted of 10 owner-occupied town home/condos; however, even
with TlF assistance the project would not cashflow. I recommended a Housing District
and suggested either a multi-housing project as the site is zoned R-3 or to increase the
value of town home in order to close the gap. He now has increased the project size to
20 units which is doable per the City Planner Consultant; however, I have not rerun the
TIP projections to see if the project might cashflow. This developer is Ed Kaufinan. He
was advised of this HRA agenda.
1
.
HRA Agenda - 6/9/99
B.
Alternative Actions:
1.
A motion of no interest to provide TIF assistance.
2.
A motion to table any action as project is premature to gage interest to provide
TIF assistance; however, recommend the developer make presentation to Council
for their interest to provide TIP assistance and commit to Local Contribution
Match.
3.
A motion to table any action as the project is premature to gage interest to provide
TIP assistance.
4.
A motion of interest to provide TIF assistance and recommend the developer make
presentation to Council for their interest to provide TIP assistance and commit to
Local Contribution Match.
.
5.
Other motion.
C. Recommendation:
With the lack of information relating to a project, no recommendation is given. With the
limited amount of non-restrictive HRA funds, it is recommended the Council consider
committing to the local match based on the use of TIP.
D. Supporting Data:
Info about Harold Jesh.
.
2
.
.
'\='~" ~?-a.. ~ S. "1:, - L-t (lD 0
HAROLD A. JESH, L.L.C.
HAROLD A. JUH, L.L.C.
Harold A. Jelh, L.L.C., wa, formed by Harold ,Je,h in July of 1&" to pro-
vide consulting servlc.. to clients .siring to be active In multi-family and Ulllted living
hOUllng ptojectl. Prior to eltablllhlng the Umited Liability Company. Mr. ....h wa.
employed by . conltructlon firmapeelatlling In lI\ulti.famlly houllng prOJlCtli a
property management company, ove,...ing both market ra" and Mction 42 houllng
developmenti and haa been involved In project development and planning government
and commercial projecm over hi. entile career.
Mr. J..h i8 a 1"7 gradua'. of It. Cloud ata.. Unlve,.ity, and he. bean a r.lident
of aauk ",.pldl for twenty-nve V..rs, chosen al aauk Rapldl CItizen OfT.. Ve.r in 1911.
HI i. allo a retired aauk RapidS VoluntHrFirefighter, having served.. Chair ofth, State
volunteer Firefighter. Conference in 1'''; aervld a. Chllrman and Member of the
'auk Rapid. Planning Commle,lon far .Ix yel...; .erved a. Fund lIla.ling Chairman for
Sports Arena Ea.t In aauk Rapldl, (a multi.purpo.. facility); .erved al Chairman and
TruI'" for Cathedral High School I" at. Cloud for liven yea,.; and wa. eleCtad to the
aauk Rapid' City Council in 1 '".
AI a Houllng Development Consultant, Mr. ,Jelh will facilitate the procel' for
clients in locating munlclpalltle. with. n..d for Multl"'amlly and Alllltad Living
HaUling: ,Ita ...ectlon, Tu Incttm.nt Financing. end financing requirements.
<\/\
HOUSING DEVELOPMENT CONSULTANT,
2 SOuth 2nd Avenue, Suite .110. Sauk Rapids, MN 56379 · (320)202-0590 · Fax; (320)253-4160
HAROLD A. }ESH, L.L.C.
LETTERS OF REPERIl".CE
1. Rich..d Zimmer. City Adminimator
City of Foley
211.... Avenue. P.o. Box 70t
Foley, MN 11321
320.111-7280
2. Larry Johnson. City AlHaor
City of Aledndria
704 Broadway. P.O. Box '18
Alexandrta, MN R301
'2G-7.a....7.
3. Gr.g LMud. City Admlni...tor
City of Mllec.
120S Central Avenue North
Mllaca, MN 18313
. 320.113-3141
... Robert Hurman. City Administrator
City of ..uk Rapid'
111 North 2nd Avenue
a.uk Rapldl, MN 1131.
320-2G1-1103
I. Dottie Mccallum. City Cleric. Treuurer
City of Mora
117 I.I!. Railroad Avenu.
Mor.. MN 11011
320.211.1103
I. William Hodgadon. Mayor
City of ..lea
P.O. Box 301
lebeka, MN 11477..0301
211-137-8112
.
(\I'~
HOUSING DEVELOPMENT CONSULTANT
2 South 2nd Avenue, S\,1ite 4f110 · Saul Rapids, MN 56379 · (320)202.0590 · Fax (320)253-4160
.
.
.
HRA Agenda - 6/9/99
8.
Consideration to authorize payment ofthe past due water utility bill and authorize change
oflocks for the HRA property located at 3 Walnut Street.
A. Reference and background:
Since the May HRA meeting, as attached, is the communication with WCCA and the
commitment to pay $1,100 ofthe past due rent for 3 Walnut Street. In addition, Tammy
has paid the remaining past due balance of $225 and $300 toward June's rent with the
remaining expected this Friday. The new house lease of June 1, 1999, between the lIRA
and Tammy Hacker is awaiting Tammy's signature.
Attached is the past due water utility bill reminder for the 3 Walnut Street. Effective July
19, an assessment payment of$50 will be added to the past due bill plus a penalty. It is
my recommendation ifthe bill is unpaid, the HRA pay this bill to eliminate the assessment
charge and further penalty. Thereafter, invoice the tenant.
Lastly, Tammy has requested the locks on the doors be changed as Jarrny and his friends
enter while she's gone. She has been unable to have him give the keys up. As 1 recall,
there are four doors to the outside. An estimate will be obtained.
B.
Alternative Action:
1. A motion to authorize payment of the $84.88 water utility bill and authorize
change oflocks for the property located at 3 Walnut Street.
2. A motion to deny payment of the $84.88 water utility bill and deny authorization
of the change oflocks for the property located at 3 Walnut Street.
3. A motion of other combinations.
4. A motion to table any action.
C. Recommendation:
Recommendation is alternative no. 1, pending bill is not paid by tenant and based on
reasonable estimates.
D. Supporting Data:
Copy ofletters, checks, and bill.
May 24, 1999
Wright County Community Action
P. O. Box 787
Maple Lake, MN 55358
Re: Rental property located at 3 Walnut Street, Monticello, MN.
Dear WCCA:
.
The Housing and Redevelopment Authority (HRA) in and for the City of Monticello, Minnesota, owns the
property located at 3 Walnut Street in Monticello. At the HRA meeting of May 12, the commissioners
passed a motion authorizing the House Lease between the HRA and tenants, Janny and Tammy Hacker,
tenninate as of May 31, 1999, and thereafter a new House Lease be executed between the HRA and
Tammy Hacker providing the past due rental fee in the amount of $1 ,325 was paid in full. As of May 15
per the Lease, a $50 May late fee was added to the $1,275. Tammy Hacker infonned the HRA
conunissioners that Jarmy Hacker would be vacating the property on May 14 and that she had applied to
WCCA for assistance.
Per our telephone conversation of May 24, the intent of the WCCA is to contribute $1,100 toward the past
due rental fee. The check from WCCA to the Monticello Housing and Redevelopment Authority to be
issued June 8, 1999, with the remaining balance of $225 the responsibility of the tenant, Tammy Hacker.
A letter of confirmation from WCCA to the HRA is requested as a guarantee of payment prior to execution
of a new House Lease on June 1.
Should you have any further questions, please do not hesitate to call me at 612-271-3208.
Sincerely,
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO
o~ \<(^U~~~
~
Ollie Koropcltak
Executive Director
.
c:
Tammy Hacker
File
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Monti<:cllu City Hall, 250 E. Broauway, PO Box 1147, Munti<:cllu, MN 55362-9245. (612) 295-2711 . Fax: (612) 295-4404
Offke of Publk Works, 909 Golf Course Rd., MOllti<:Cllo, MN 55362 . (612) 295~3170 . rax: (612) 271-3272
130 West Division Street · P,O, Box 787 · Maple Lake, MN 55358
(320) 963-6500 · Fax (320) 963-5745 · TDD 1-800-627 -3529
Office Hours: Monday - Friday 8:00 a,m, - 4:30 p,m,
Ollie Koropchak
Executive Director
P.O. Box 1147
Monticello, MN 55362~9245
May 26, 1999
Dear Ollie Koropchak:
Wright County Community Action has been working with one of your clients to help
resolve a housing problem. Tammy Hacker has taken out a loan with us for $1,100.00.
Due to our bi-weekly pay periods you will be receiving the check on or around June 10,
1999.
. Sincerely,
0~~~'':~~(\~
Shirley Lcgatt
Economic Self-Sufficiency Specialist
.
L\, /?-
SERVING THE COMMUNITY SINCE 1965
HEAD START' WOMEN, INFANTS & CHILDREN' FAMILY PLANNING' WEATHERIZATION · ENERGY ASSISTANCE · HOME REPAIR
HOME BUYER TRAINING . HOUSING ASSISTANCE' ECONOMIC SELF-SUFFICIENCY' FAMILY LOANS' FOOD & CLOTHING' COMMUNITY INITIATIVES
An EQUOI OppOrtunKy Employer
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WESTERNIIMONEY INTEGRATED PAYMENT SYSTEMS INC. - ISSUER
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/'I'J/) J** NOT GOOD OVER TWO HUNDRED TWENTY";lVE DOLLARS AND NO CENTS
PAY EXAC'1LVI
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O~i1t
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MONTICELLO
June 4, 1999
This is a reminder that your utility bill is now past due. Please check your records. If you have any questions
or concerns regarding this billing, contact the Utility Billing Department at City Hall.
If you feel that an adjustment to your account is necessary, we must be notified before July 19,1999.
The past due amount must be received by 4:30 on that date. Remember. this is the onlv reminder notice
that vou will receive.
If your account still has a $10 balance after the due date listed above, our city ordinances and state statutes
allow us to certify the unpaid utility bill as a special assessment against the property. To help deter
delinquent accounts, there is an assessment orocessing char~e of$50. This $50 assessment processing charge
will be added to your delinquent balance. This delinquent bill will now be included on the assessment roll
to be considered by the City Council at a public hearing.
. NOTICE OF PUBLIC HEARING
Notice is hereby given that a public hearing will be held by the City of Monticello City Council on
July 26, 1999, at 7:00 p.m. in the Monticello City Hall to consider the following matter:
Consideration of adoption of an assessment roll on delinquent accounts pursuant to
Monticello Ordinance, Sections 7-2-21, 7-3-3 (C), and 7-6-9 (B), and Minnesota Statute,
Sections 429.101, 443.015, and 444.075. A copy of the assessment roll is on file at the
Monticello City Hall and may be reviewed during normal business hours.
Written and oral testimony will be accepted on the above subject, and all persons desiring to be heard on
referenced subject will be heard at this meeting.
~f!L~
City Administrator
.
~/~
Monticello City Hall, 250 E. Broadway, PO Box 1147, Monticello, MN 55362-9245. (612) 295-2711. Fax: (612) 295-4404
Office of Public Works, 909 Golf Course Rd., Monticello, MN 55362 . (612) 295-3170 . Fax: (612) 271-3272
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HRA Agenda - 6/9/99
9.
Consideration to adopt a resolution recommending the Citv Council authorize citv staff to
begin preparation for acquisition of the Goeman/Chadwick properties for industrial
development.
A. Reference and background:
In 1996 and 1998, the HRA committed $75,000 each year for industrial development and
requested the City to match the funds. Therefore, a reserve fund of $300,000 exists for
industrial development.
A few years ago, the IDC called a meeting of the Council and commissions to stress the
importance of industrial development and to create an awareness of aggressive industrial
development programs offered by other communities. It appeared those communities
owned industrial parks and recognized the importance of being "ready for business".
Although the Marketing Committee (BRA and IDC members) developed an aggressive
marketing plan which included a new marketing brochure, they did so with the knowledge
they were marketing privately-owned industrial property. Commissioner Lahr and myself
requested additional dollars for the industrial development reserve fund during the 1999
city budget session. With other budget request, the council did not foresee the importance
of the economic development investment.
Within the last year, the IDC has researched industrial incentive programs offered by Big
Lake and Buffalo. Monticello's industrial property is controlled by one owner and at this
time, the owner prefers not to sell the freeway exposed property. And they prefer to sell
the Monticello Market Place as one 30-acre piece. Creditable real estate brokers and
businesses perceive public-owned property as a means to control the development
schedule. Acquisition ofland today will control land prices in the future. Therefore, the
IDC made a motion recommending the City Council authorize city staff to begin
preparation for acquisition of the Goeman/Chadwick properties for industrial
development. During IDC discussions, the IDC understands industrial development is a
common goal among the HRA, EDA, and IDC, and recognizes the IDC acts in an
advisory capacity. Therefore, it is suggested the HRA consider adopting the enclosed
resolution for submission to the City Council on June 14. The EDA will vote by proxy to
adopt a similar resolution of endorsement.
The Goeman/Chadwick properties are located in the southwest corridor of the MOAA.
Previously, the IDC recommended to the MOAA and City Council, the two properties be
designated for industrial land use within the MOAA Land Use Plan. The IDC also
suggested the city swap the City/Remmele parcel for the Chadwick parcel which has been
discussed at staff and developer level. The city has completed appraisals for both parcels;
however, they are seeking second appraisals. It appears the city would purchase the
1
.
HRA Agenda - 6/9/99
property and authorize the HRA or EDA to manage and market the property, most likely
the HRA An HRA or EDA can not purchase property outside the city limits.
B. Alternative Actions:
1. A motion to adopt a resolution recommending the City Council authorize city staff
to begin preparation for acquisition ofthe Goeman/Chadwick properties for
industrial development.
2. A motion to deny adoption ofthe said resolution.
3. A motion to table any action.
C. Recommendation:
Recommendation is alternative no. 1. The resolution authorizes city staff to begin
preparation for acquisition. It was suggested to the IDe to make a motion recommending
Council action therefore moving the process along.
.
D.
Supporting Data:
Resolution for adoption and IDC letter.
.
2
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MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO, MINNESOTA
RESOLUTION NO.
Resolution recommending the City Council authorize city staff to begin preparation
for acquisition of the Goeman/Chadwick properties for industrial development.
WHEREAS, the Monticello Housing and Redevelopment Authority ("Authority")
endorses the City of Monticello Community Vision and Governing Policies~ and
WHEREAS, the Authority endorses the economic development efforts of the City of
Monticello through the administration ofthe Central Monticello Redevelopment Project No. 1
Plan and the Marketing Plan~ and
WHEREAS, the Authority previously committed a total 01'$150,000 toward the
acquisition or development of industrialland~ and
.
WHEREAS, the Authority previously requested the City Council match the Authority's
$150,000 for acquisition or development ofindustrialland~ and
WHEREAS, the City Council previously committed $150,000 toward the acquisition or
development of industrial land.
NOW THEREFORE, BE IT RESOLVED by the Board of Commissioners of the
Monticello Housing and Redevelopment Authority as follows:
1. Acquisition of said properties will control land prices.
2. Acquisition of said properties will control and simplify development schedules.
3. Acquisition of said properties will diversify ownership of industrial lands.
4. Acquisition of said properties will provide for a competitive market.
5. Acquisition of said properties will allow for tlexibility in deal structuring.
6. Preparation for acquisition of said properties places the City of Monticello first in-
line to acquire.
.
~ .-J.
. HRA Resolution No.
Page 2
.
Adopted by the Board of Commissioners of the Monticello Housing and Redevelopment
Authority this _ day of , 1999.
HRA Chair
ATTEST:
Executive Director
.
~,,3
.
.
.
MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE
POBOX 1147
MONTICELLO, MN 55362
May 26, 1999
Mayor Roger Belsaas
Monticello City Hall
250 East Broadway, PO Box 1147
Monticello, MN 55362
Dear Mayor Belsaas:
The Monticello Industrial Development Committee (IDC) at their May 20, 1999, meeting passed a motion
recommending the City Council actively pursue the acquisition of the Goeman and Chadwick properties in the
southwest corridor for industrial development.
The recommendation comes after months of discussion by the IDC. A few months ago, the IDC suggested the City
swap the City's (Remmele) 68-acre parcel for Chadwick's 84.5-acre parcel and purchase Goeman's 94.5-acre
parcel all located within the southwest corridor. In previous years, the HRA committed $150,000 for acquisition
or development of industrial land and the City matched the BRA's commitment for a total reserve fund of
$300,000. And most recent, the City Administrator obtained appraisals on all said properties.
The IDC's recommendation is based on the following rational:
1. City first in-line to acquire property.
2. Controls land price.
3. Controls and simplifies development schedule.
4. Diversifies ownership of industrial lands.
5. Provides for a competitive market.
6. Allows for flexibility in deal structuring.
The IDC requests the City Council authorize City Staff to begin preparation for acquisition of the Chadwick and
Goeman properties for industrial development.
Respectfully submitted by the Monticello Industrial Development Committee.
Sincerely,
Sheldon Johnson
Chairperson
SJ/ok
c: File
q~'-\
•
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO, MINNESOTA
RESOLUTION NO.
Resolution recommending the City Council actively pursue the acquisition of the
Goeman/Chadwick properties for industrial development
and authorize city staff to begin preparation thereof.
WHEREAS, the Monticello Housing and Redevelopment Authority ("Authority")
endorses the City of Monticello Comprehensive Plan and the Community Vision and Governing
Policies; and
WHEREAS, the Authority endorses the economic development efforts of the City of
Monticello through the administration of the Central Monticello Redevelopment Project No. 1
Plan and the Marketing Plan; and
WHEREAS, the Authority previously committed a total of $150,000 toward the
acquisition or development of industrial land; and
WHEREAS, the Authority previously requested the City Council match the Authority's
$150,000 for acquisition or development of industrial land; and
WHEREAS, the City Council previously committed a total of $150,000 toward the
acquisition or development of industrial land; and
NOW THEREFORE, BE IT RESOLVED by the Board of Commissioners of the
Monticello Housing and Redevelopment Authority as follows:
Acquisition of said properties will control land prices.
2. Acquisition of said properties will control and simplify development schedules.
Acquisition of said properties will diversify ownership of industrial lands.
4. Acquisition of said properties will provide for a competitive market.
5. Acquisition of said properties will allow for flexibility in deal structuring.
6. Preparation for acquisition of said properties places the City of Monticello first in-
line to acquire.
~..
HRA Resolution No.
Page 2
Adopted by the Board of Commissioners of the Monticello Housing and Redevelopment
Authority this day of , 1999.
HRA Chair
ATTEST:
Executive Director
•
.
.
.
10.
BRA Agenda - 6/9/99
Consideration of an u date relatin to the non-certification and tax increment a ments
for TIF District No. 1-18. and authorization of action if so determined.
A. Reference and background:
At the HRA meeting of May 12, the BRA was informed of an upcoming letter from RDI.
Attached is the RDI letter and my response of May 27. Upon request ofROI, this
appears on the BRA agenda. Although the BRA attorney received a copy of the May 27
letter, I later requested comment from the BRA attorney as a reaffirmation to the May 27
letter.
Although RDI foresees the need to amend the Private Redevelopment Contract, both the
BRA attorney and myself do not see the need at this time. If the BRA commissioners see
otherwise, the option is open.
B. Alternative Action:
1.
A motion to amend the Private Redevelopment Contract between the HRA and
ROI. Provision for extension oHime and provision for interest on missed
payments.
2. A motion of no action necessary at this time.
3. A motion to table any action.
C. Recommendation:
Recommendation is alternative no. 2.
D. Supporting Data:
Letters ofRD1, BRA, and HRA attorney.
I
'~ Residential Development, Inc.
.
.
.
15 CHOCTAW CIRCLE, CHANHASSEN, MN 55317-8577
(612) 934-6238 . FAX (612) 934-2428
,~,:~'
May 12, 1999
Ms. Ollie Koropachak
City of Monticello
250 East Broadway
P.O. BOX 1147
Monticello, MN 55362
..............
RE: River Mill Subdivision, Monticello, MN (TIF District 1-18)
Dear Ms. Koropachak,
I am writing to solicit information on the status of the above-referenced TIF
program.
It is my understanding that the application for TIF District certification was
submitted on March 21, 1995 by the City to the County, but the actual date
of certification by the County was not until March 13, 1999. RDI has
finished its reclaimation work pursuant to the Agreement between the City
and ROlon schedule. Under the terms of our Agreement, the first
reimbursement under the pay-as-you-go program was due August 1, 1998.
It was at that time we discovered the district was not certified, consequently,
the City defaulted on these payments. RDI has agreed to allow the City to
make sure it has established a district (which appears to be in process),
and we would like to verify amounts, current and delinquent which will be
due August of 1999.
Tax Increment calculations indicate an amount due to RDI for the year 1997
to be $40,791.96; payable $20,395.98 on August 1, 1998, and $20,395.98
on February 1, 1999. Our cost of money is at prime plus 1 %. The 1997
delinquent amounts and the 1998 increment amount on August 1, 1999
should have interest accrued at this rate. We have attached a worksheet
showing the actual interest calculation. It appears that the 1998 increment
will be limited by contract terms to the maximum aggregate amount of
$81,600.00, making the August payment $20,404.02. We are, therefore,
planning on $63,937.41 as the total August 1, 1999 payment, as indicated
on the attached worksheet.
\'\/'
Ms. Ollie Koropachak
-2-
2-12-99
.
In light of these complications, it is apparent that a short amendment to the
TIF Agreement dated February 6, 1995 is in order. It should include
provisions for extension of times, as well as, provisions for interest on
missed payments. Please let us know if we can be of any help in
accomplishing this amendment.
We would appreciate confirmation of the above.
Sincerely,
L~ELOPMENT, INC.
"
Rick O. Murray
President
-~
ROM/sav
cc: Rod Bunting, Tax Specialist
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May 27, 1999
MONTICELLO
Rick D. Murray
Residential Development, Inc.
15 Choctaw Circle
Chanhassen, MN 55317-8577
RE: Contract for Private Redevelopment between and by the Housing and Redevelopment
Authority in and for the City of Monticello, Minnesota, and Residential Development, Inc.
Dear Rick:
.
Thank you for your letter of May 12, 1999. The purpose of this letter is to clarify a couple of
points noted in your letter.
First, the Contract reads the Authority will pay the soil correction costs (SI02,000) to the
Redeveloper without interest thereon in semi-annual installments payable on each February 1 and
August 1 (Payment Dates) commencing August 1, 1998 and concluding no later than February 1,
2004, which payments will be made from "Available Tax: Increment" as defined in this section and
from no other source, and will be subject to all the terms and conditions of this section.
"Available Tax: Increment" means 90% of the Tax: Increment paid to the Authority with respect to
the TIF District during the six. months preceding any payment date. "Tax Increment" means that
portion of real estate taxes which is paid with respect to the TIF District and which is remitted to
the Authority as tax increment pursuant to the Tax Increment Act. Rick, the Contract is between
the Authority (HRA) and RDI and the City nor the HRA received any tax increment for payable
1998; therefore, neither the City nor the HRA defaulted on the payments. However, real estate
taxes were collected by Wright County for payable 1998 and distributed to the school, county,
city, and hospital taxing jurisdictions.
Secondly, if Tax Increment District No. 1-18 had been certified in March 1995, it is estimated the
reimbursement payments to RDI would have been S20,395.98 on August 1, 1998 and S20,395.98
on February 1, 1999.
.
Lastly, per the Contract commencing August 1, 1999 through February 1,2002, the HRA will
pay the Redeveloper either 50% or 80% of the available tax increment provided the aggregate
sum of all payments under paragraphs c. and e. does not exceed S51, 000 or under paragraphs c.
and d. does not exceed $81,600, respectively. The August 1, 1999, and February 1,2000 \ \) /~
Monticello City Hall, 250 E. Broadway, PO Box 1147, Monticello, MN 55362-9245 . (612) 295-2711 · Fax: (612) 295-4404
Office of Public Works, 909 Golf Course Rd" Monticello, MN 55362 . (612) 295.3170 . Fax: (612) 271.3272
.
.
.
payments will be determined upon compliance of July 1, 1999 requirements of the Contract and
upon payment of the tax increment to the HRA. At this point, I foresee no need to amend the
Contract.
Rick, it is unfortunate the District was not certified. Any discrepancy relating to interest due on
estimated August 1, 1998 and February 1, 1999 payments is between RDI and Wright County.
Should you have any further questions, please do not hesitate to call me at 612-271-3208.
With warm regards,
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO, MINNESOTA
(j~~0\~9~
Ollie Koropchak
Executive Director
c:
File t/.
Rod Bunting, County Tax Specialist
Rick Wolf steller, City Administrator
Steve Bubul, Attorney at Law
\~ /-5
.
'KenIledy
--, '- - --&---
(;ravcn
C H A ATe RED
470 l'JJ.b..ry C:cl1rcor
200 :Sol'th Si;o:.rh Srre,,[
MiIUl~<lp"ll' MN 55401
(612) 337-9300 [clc:phOll.
(612) 337-9310 t3.<
hl[p,/J,......,..lcc:nrlc:<1y-gl~lwn.culn
STf1'HE~ J. BLIUl'l.
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-.:",1",1.11 .:r.Dul:)L.l.l~I~.:lli'.l...lJ.Y-.:::...v.."1.... vII.
lune 3, 1999
01hl:" }(oropcl1a~
City Hall
P.O. Box 1147
Monticello. MN 55362
R.E; ComraCt for PnvJlc ReC1cvelopmeJ.lt betw~~n liRA ~nd Residenhal Devdopment. Inc.
Ol;if Ollie:
You ask~d me lO conunent on the request by Residential Development, Tnc. eRQ!") that th~
'.City" pay mterest on tax increment paym~nts that would have beeu paId In 1998 if TIF Distnct
No. 1-18 had been propaly cenified by Wright COWlty,
.
To recap the facts, th~ liou.sin~ and Rcdtvc:lupmem Authority and eny approved the tax
increment finOLnclng, plan tor TIF District No. 18 in November, 1994. On March 21, 1995. the
HRA's consultllnr Pubhc: Resource Group, Inc, transmitted the TIF Plan to the Wri~hI Coumy
Audnor along with ;J. request to cert!ry the ori~inal tax capacity of the Jistrict.
Som"mmc= J\.1rin~ 1998, the HRA bs:camc: awa.re that Wright COl.l.nty had not cem1icJ th~ TIF
Distrlct. and nO li:i>o increment would therefore be paid to the HRA in 1998. The County has
since corrcct.:::d that ~TTor, so that tax increment will be paid in 1 Y9~. How~ver, I u.nderstand that
th~ C'oumy has not offorcd to pay any amountS necessary to recoup the tax !ncrc:ment "lost" in
1998 beca~lse of the ceniticat!on error
Under the Contract for Private Redevelopm~nt bc::tween the lIRA and RDI dateJ February 6.
1995 ('"Contract"), the HRA agreed to r~imb~rse RDI for ccrtain SIJil correction COStS, subject to
t~nns and condlIlons spelled Uut iLl Sc:ction 3.3 of the Contract. Section 3.3(a) stat~s:
The So!l Corrc::ctlon costs will be paid by the Authority to the Redeveloper
'wirhuut m{ere~.{ thereon in semi-lllU1-ua11Ilstallmc::nt.s p<1yable on each Fc:bru<1f)' 1
ilnd AugUSt 1 ("Payment Datc::s") commencIng August 1, 1998 and concludwg no
lat~r than febrlll:l.ry 1, 2004. WhlC:h payments will be mucl(! from A vutlublt:: r".t
ItlcrerMnl u.~ {it'/im.." Ifl iJl1~' ~'ecliO(/ (1,,,1 fro"., no cJlher ~"mrce. :.1TlJ w1ll be subJ~ct
to all the ttmns i:lIld conditions of this Sccuun (emphasis added)
.
The t..m) "AvJ.ilabJe Tax Lncrement" is Jefined in Secti.on 3.3(b) as ""90 percent of t11t Tax.
Incrc::ments paid TOthe Authorny during the six mOnThs preceding Jny Payment Date" except [or
Increment from commt:rclill propeny. The tenn "Tax Increment" is defined in Section 1,1 as
SJB. Lo.>95&
MN1\lD-4o
\ ~ /\,
.
June 3, 1999
Page;: 2 of2
'1hat ponion of the real propeny tax!.':s whlch 1S paId wllh n:spect to the TIF District und WhKh IS
remitted to the Aucl1ori~y as cax inCfem~n[ pzm;uWlllO rhe Tux fncremenc ACC" (emphasis added)
In this instanc.:, the HRA and City took all aCtl"ms nel:c:ssary lO e;:sli:tblish the TIF District by
approV'lng tht: plan and rC:4LLc;:sung cenification by the coUntY audnor. Under MiIUlcsota Statutt:s,
Section 469.177, subd. 1. the county audnQr "sh::1.l1, upun n:qLlest of lhe i.1Llthority. cenify the
0(1l$i1101l nel t~ capacity of the ta>. increment financing distnct." Unforrunatdy. tht= COLU1ty
failed (0 certlfy the ddtnct as r~qui.!~J, anJas a re:sult fi.Liled to pay taX increment trom the
distnCl in 1998.
However, the HRA's only obligation under the Contract IS to pay 90% of the ti;1.X increments
"rc:m1in~J to the Authority." If.the HAA did not actually receiVe tax mcr~ment becat.lsc of the.:
county'~ ercor. th~ J:iRA has no obli~aliQn to mak~ payments from any OTher s>ource. The
Contract also clearly states that soil correctlOllS casts wlll be: reimbursed without imerest. in my
view, the;:rdore, the HRA has no I)bli~l:l.tion to maKe any additioll3.l paynientS, or ",JJ lfit~'C:St to
any payments, as requested by RDl.
From your repoI1s, it seemS likely that RDI Will ult1I1lately r~celVC: the: fl.l.ll $102,000 of
reimbLlrs~mc:nl ullJer the terms of ~he Contract, albeit at a later date. If RDI seeks to recover
ulterc~t on the amountS it would have r~c~lved had me county ~im~ly ct:nified the district, it may
of course seek a remedy from the County.
.
If the: HRA wt:re: to make additional interest payments as requested, that action would reqUire
modl!icatlon of the Contract and approval by the HRA board This would be a policy Jedsion
for the bOCirc1 to make. 1n my view. however, the HRA clearly has no obhgatlon to take sur.:h
action.
As ;.1 final point, it is also clear that the CiLy has no obligations with respect to RDI. The City's
role 1U thiS development was to hold a publiC hearmg and approvc= tht! ta);. incrf:m~n~ financin~
ph:1u. After beio.g established, the district is administered by the HRA, and t~ increment
p~yments are made to the HM. Likewise, the contract is between RDI and the HRA. not the
eny
If you or HRA conunissloners have further quesl10ns on UllS maner, please let m~ KnOW.
.
\~/~
.
.
.
HRA Agenda - 6/9/99
11.
Consideration to authorize payment of monthly lIRA bills.
Recommendation is a motion to authorize payment of bills. The EDA bill is for the
Mainline Distribution industrial loan which closed on June 1. EDA legal expenditures
were reimbursed by Mainline.
..OLII
YOURNAMIJI1'
...OMOIIO...
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......... .n UYle~ REMIT TO:
\...)...Q....uJ 0 ~ ' I \ G'o~ Tournament Promotions
2,~01 Midway, Ste 102
'::arrol/ton, TX 75006
Invoice
Invoice To:
City of Monticello
Ollie Koropchak
250 East Broadway
Monticello MN 55362
event, Course, Date
5/28/99
Invoice Date: May 28, 1999
au
150
Description
Polybagged - Tees & Marker
Imprinted wI City. of Monticello (Teal Blue on white tees and marker)
Unit
fda
$.90
Am9unt
$135.00
.
Amount
$135.00
S.l..'rax
Shipping
o
8,50
DI,count I Dep.)'lt
Balance IlUG
$143.50
Thank You For Your Business /
.~EAMS: Payment must be reoeived prior to event
~ :Any Questions? PleBse Call Us At 972-774.9670.
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.
KENNEDY & GRAVEN
Chartered
200 South Sixth Street, Suite 470
Minneapolis, MN 55402
(612) 337.9300
CLIENT SUMMARY May 10.1999
City of Monticello
Ollie Koropchak
City Hall
P.O. Box 1147
Monticello. MN 55362-9245
Through Apri130. 1999
MN 190-00041: Redevelopment - General
MN190-00078: Community Center-Post Closing Issues
Services Rendered:
Disbursements:
Balance Due:
.
$
$
$
$
$
111.20
420.00
531.20
0.00
531.20
\v1-
.
.
.
KENNEDY & GRAVEN
Chartered
200 South Sixth Street, Suite 470
Minneapolis, MN 55402
(612) 337-9300
May 10, 1999
City of Monticello
Ollie Koropchak
City Hall
P.O. Box 1147
Monticello, MN 55362-9245
MN 190-00041: Redevelopment - General
Invoice # 30025
~,~
~Q-,~
Through April 30, 1999
For All Legal Services As Follows:
04/08/99 SJB Phone call with 0 Koropchak re status of various
TIF districts
04/22/99 SJB Phone call with 0 Koropchak re various TIF
matters
Total Services:
Total Services And Disbursements:
0.50
0.30
69.50
41.70
$
111.20
$
111.20
\v:?
.
.
.
City of Monticello
Ollie Koropchak
City Hall
P.O. Box 1147
Monticello, MN 55362-9245
KENNEDY & GRAVEN
Chartered
200 South Sixth Street, Suite 470
Minneapolis, MN 55402
(612) 337-9300
May 10, 1999
MN190-00078: Community Center-Post Closing Issues
Invoice # 30028
Through April 30, 1999
For All Legal Services As Follows:
~
04/22/99 DJG Research re TIF pledge.
04/27/99 DJG Research and draft memo re Pledge ofTIF funds.
Total Services:
Total Services And Disbursements:
1.20
2.30
144.00
276.00
420.00
$
$
420.00
\ \..'-\
.
KENNEDY & GRAVEN
Chartered
200 South Sixth Street, Suite 470
Minneapolis, MN 55402
(612) 337-9300
CLIENT SUMMARY May 10, 1999
Monticello EDA
Ollie Koropchak
PO Box 1147
Monticello, MN 55362-9245
Through April 30, 1999
MN325-00005: Mainline Distrinution Properties Loan
Services Rendered:
Disbursements:
Balance Due:
.
V0y
B '{0- %.. O"~
C9 ~.
\.- 0 <Y' ,
$
132.00
$
$
132.00
0.00
$
132.00
\v{
.
.
.
KENNEDY & GRAVEN
Chartered
200 South Sixth Street, Suite 470
Minneapolis, MN 55402
(612) 337-9300
May 10, 1999
Monticello EDA
Ollie Koropchak
PO Box 1147
Monticello, MN 55362-9245
MN325-00005: Mainline Distrinution Properties Loan
Invoice # 30029
Through April 30, 1999
For All Legal Services As Follows:
04/14/99 DJG Draft loan documents for Mainline Distribution
Total Services:
Total Services And Disbursements:
1.10
132.00
132.00
$
$
132.00
\\~
.
.
Monticello HRA
PO Box 1147
Monticello MN 55362-9245
May 10,1999
\~~~
MC100.01
GENERAL
Invoice # 16098
Hours Amount
4/21/99 MTR Discussions with Ollie
Total Due This Month:
Previous Balance:
Total Balance Due:
0.25
26.25
0.25
$26.25
$52.50
$78.75
.
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 - 6/9/99
12.
Consideration of Executive Director's report:
a) Brad Larson Tax-Credit project - Attorney Larson informed me his proposed tax-
credit project along River Street across from the NSP Training Center was not
awarded tax-credit funding. Larson requested TIF assistance which the lIRA and
Council endorsed. Reasons for non-funding was site location - to far from core
downtown area. TIF request dropped.
b) Project Updates -
200,000 sq ft building 20 acres - This project is still forth coming. The company
owner will be golfing on Wednesday.
100+ acre request - Monticello continues on the site selection search and remains
of the short list. Addition maps of the City and site were requested this week.
Looking for a partnership with the City.
35,000-40,000 sq ft - Bob Murray, Shelly Johnson, Roger Carlson and myself
visited this die casting company a few weeks ago. Last week, the two owners and
another official visited the Monticello site, Monticello Commerce Center, for a
second time. Mayor Belsaas, Shelly Johnson, Darrin Lahr, Ron Hoglund, Kevin
Doty, Rick Wolfsteller, and Lenny Kirscht joined us for lunch at the Monte Club.
Thereafter, Lenny Kirscht presented the company with a uses and sources funding
statement which was well received. Next step to meet with property owner and
continue funding request, developer driven.
75-100 acres - No recent update.
c) Nancy Whalen - Nancy's resignation is effective June 18 as Community
Development Secretary. She and her husband are moving to Arkansas. Nancy's
replacement is Lori Kraemer.
d) Rita Ulrich has resigned from the MCP effective June 18 and has a new position
with the Nokomis East Neighborhood Association in Minneapolis. The Chamber
of Commerce hired Brenda Naffziger to replace Kitty Baltos. Brenda was
Chamber Director in Becker.
e) Public Law Update - Attended the update on June 4. More at meeting.