HRA Agenda 07-14-1999
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AGENDA
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, July 14, 1999 - 7:00 p.m.
City Hall
MEMBERS: Chair Bob Murray, Vice Chair Darrin Lahr, Brad Barger, Steve Andrews, and Dan
Frie.
COUNCIL LIAISON:
Brian Stumpf.
OFFICERS: Treasurer Rick Wolfsteller and Executive Director Ollie Koropchak.
1. Call to Order.
2. Consideration to approve the June 9, 1999 BRA minutes.
3. Consideration to adding agenda items.
4. Consent Agenda.
a) Consideration of the revised BRA Fund Summary for year ended 12/31/98.
5.
Consideration of items removed from the consent agenda for discussion.
6. Consideration of City Council recommendation to authorize preparation and solicitation of
a request for proposal for an over-all City Housing Study.
7. Consideration to authorize reconveyance of Outlot A, Country Club Manor, to the State
ofMinnesoa and reapply for conveyance.
8. Consideration of level of interest for use of TIF to assist a manufacturing company.
9. Consideration to approve amending the Private Redevelopment Contract between the
HRA and RDI subject to release of any claims against the HRA.
10. Consideration of request from HRA to City Council for Budget Process - Year 2000.
11. Consideration to authorize payment of monthly BRA bills.
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) North Anchor - Dan Frie and Bob Murray
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e)
Marketing - Darrin Lahr and Brad Barger
14. Other Business.
15. Adjournment.
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MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, June 9,1999 - 7:00 p.m.
Members Present:
Chair Bob Murray, Brad Barger, Darrin Lahr and Dan Frie. Member
Steve Andrews was absent.
Council Member:
Brian Stumpf
Staff Present:
Executive Director Ollie Koropchak and Recording Secretary Lori
Kraemer
1. Call to Order
Chair Bob Murray called the HRA meeting to order at 7:00 p.m.
2.
Consideration to approve the May 12. 1999 HRA minutes.
A MOTION WAS MADE BY BRAD BARGER AND SECONDED BY DARRIN
LAHR TO APPROVE THE MINUTES, AS WRITTEN, OF THE HRA MEETING OF
MAY 12, 1999. Motion carried unanimously.
3.
Consideration of addinQ aQenda items.
Executive Director Ollie Koropchak asked to add two items to the agenda.
a. Consideration of Ed Kauffmann to review using TIF for a condominium
development on 6th Street and Minnesota Street. This item was added to 7B.
b. Consideration of putting plan for TIF District 1-22 under the Executive
Director's report.
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.
A MOTION WAS MADE BY BRAD BARGER AND SECONDED BY DAN FRIE TO
TO ADOPT A RESOLUTION APPROVING A MODIFIED
REDEVELOPMENT PLAN FOR CENTRAL MONTICELLO REDEVELOPMENT
PROJECT NO. 1 AND A MODIFIED TIF PLAN FOR TIF DISTRICT NO. 1-22, with
the addition of the block number which was not listed (Block 1). Motion carried .
unanimously.
A MOTION WAS MADE BY BRAD BARGER AND SECONDED BY DAN FRIE TO
ADOPT RESOLUTION APPROVING TAX INCREMENT PLEDGE AGREEMENT
BY AND BETWEEN THE CITY OF MONTICELLO, MINNESOTA, AND THE
MONTICELLO HRA. Motion carried unanimously.
5. Consideration of items removed from the consent agenda for discussion.
None
6. Consideration to swap HRA lot and Grassl lot on West Broadwav.
This item was an add-on item to the HRA 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 HRA's lot located on the north side of West Broadway. Square footage
oflots are 7,095 and 10,065 respectively. The HRA 1996 appraisal of the northerly
parcel was $37,000 and was purchased for $50,000.
Prior to the HRA 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 of Mr. Grassl's interest to swap,
the Council deferred the item to the HRA prior to taking action to acquire the 6-foot strip.
There was discussion regarding the feedback from the Council, DA T, MCP, Planning
Commission and North Anchor Committee with the DA T being the only committee
recommending to swap the individual lots.
After further discussion on how the HRA could help Mr. Grassl with his request, it was
suggested that Mr. Grassl retain air rights of approximately 10 feet above the walkway.
A MOTION WAS MADE BY DARRIN LAHR AND SECONDED BY DAN FRIE OF
NO INTEREST TO SWAP THE HRA LOT AND THE GRASSL LOT WITH A
RECOMMENDATION THE CITY COUNCIL CONSIDER PURCHASING A 6-FOOT
STRIP OF THE GRASSL LOT TO CREATE A W ALKW A Y FROM THE
STOREFRONT TO THE PARKING LOTS CONSISTENT WITH THE
REVIT AUZA TION PLAN. Motion carried unanimously.
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7B
7.
Consideration to hear a presentation in concept form for development of a multi-housing
facilitv and consideration of interest to orovide TIF assistance.
Harold Jesh called the Office of the 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.
Harold presented a brief discussion requesting the HRA consider awarding TIF for this
housing project which would include approximately 4 one bedrooms, 2 three bedrooms
and the rest would be large two bedrooms. They would include fireplaces and garages
and rent for approximately $600 per month. All units would be at market rate except
20% which would be set aside for four-member families. Mr. Jesh stated this projected
could not be done without TIF assistance. He has not done a complete comparison with
other rental units in Monticello but would be willing to do so if the HRA shows an
interest in this concept. Mr. Jesh was asked, assuming the location is acceptable, to
compare other 2 and 3 bedroom rentals in Monticello with comparable amenities. He
estimated the need for 15 years of available tax increment or 90%.
The HRA would like more direction from the council once more facts are received and
questioned whether it was a priority of the HRA to use TIF for market rate housing.
A MOTION WAS MADE BY DARRIN LAHR AND SECONDED BY DAN FRIE TO
TABLE ANY ACTION AS PROJECT IS PREMATURE TO GAGE INTEREST TO
PROVIDE TIF ASSISTANCE, AND REQUESTED DIRECTION FROM THE CITY
COUNCIL RELATIVE TO THE USE OF TIF ASSISTANCE FOR MARKET RATE
HOUSING. Motion carried unanimously.
Consideration of proposal by Ed Kauffmann for possible TIF assistance for a
condominium development near Sixth Street and Minnesota Street.
Ollie Koropchak introduced Ed Kauffmann who addressed the HRA board and handed
out maps of his concept plan for Minnesota Street & 6th Street for a 20 unit condo
development. Presently, there are 4 substandard houses on these lots. The previous city
council identified these as shanty town.
Lots 3, 4,5, and parts of 6 & 7 which currently have 4 houses on them and require
demolition. It was previously suggested by the Mayor & Jeff O'Neill to possibly add
more housing to get the numbers up, the zoning is right, and they have gone thru Steve
Grittman and Jeff O'Neill who liked the idea. Ed stated it will take TIF money to put the
project together.
Koropchak had previously ran the TIF estimates and stated a Housing District is
suggested, as a Redevelopment District does not meet creation requirements. Mr.
Kauffmann stated the units would not be rentals, but sold to individuals and the property
would be taken care of by an association.
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Mr. Kauffmann currently owns 1 lot, and had previously spoken to the owners of the
current homes who stated their interest in selling and would need to own all lots in order
to make the development work. The board agreed that getting rid of the housing that is
presently there and replacing with this type of affordable housing would be a good
decision.
Koropchak inquired if there were relocation benefits offered to the current owners and
Mr. Kauffmann stated no. Waivers should be signed as the HRA must inform people of
their relocation rights.
The consensus of the board was that they were not committed, but interested. Mr.
Kauffmann stated that he would have numbers put together for the next time he meets
with the board. No action was necessary.
~ Consideration to authorize payment of the past due water utilitv bill and authorize change
of locks for the HRA oroperty located a 3 Walnut Street.
Since the May HRA meeting, as attached, is the communication with WCCA and the
commitment to pay $1,100 of the past due rent for 3 Walnut Street. In addition, Tammy
has paid the remaining past due balane of$225 and $300 toward June's rent with the
remaining expected this Friday. The new house lease of June 1, 1999, between the HRA .
and Tammy Hacker is awaiting HRA signature.
Koropchak gave background stating that since the last HRA meeting, Tammy has made
payments and referred to the letters. Tammy was looking to pay the past due utility bill
herself. Ollie didn't see the need for HRA to pay. She also stated there have been several
complaints to city hall regarding the property and several unlicenced cars parked there, as
well as debris such as sofas and carpet. City Administrator Rick W olfsteller sent City
Inspector Gary Anderson to check on these complaints and cited the unlicenced vehicles.
Rick Wolfsteller agrees to give notice to the renters if proper clean up of the debris is not
done.
The commissioners requested Koropchak draft a letter stating a 30-day notice to
terminate if cleaned up is not done and request the city cite other properties, if applicable,
along Front Street.
A MOTION WAS MADE BY DARRIN LAHR AND SECONDED BY DAN FRIE TO
AUTHORIZE PAYMENT OF THE $84.88 WATER UTILITY BILL IF UNPAID BY
JUL Y 16,1999 AND THE HRA NOT TO CHANGE LOCKS FOR THE PROPERTY
LOCATED AT 3 WALNUT STREET UNTIL AFTER THE 30 DAY NOTICE;
HOWEVER, GAVE TAMMY PERMISSION TO CHANGE THE LOCKS HERSELF AT
HER EXPENSE PRIOR TO THIS 30 DAY PERIOD AS LONG AS A KEY IS GIVEN TO .
THE CITY. Motion carried unanimously.
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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.
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".
Koropchak advised commissioners of the revised resolution consistent with the IDC
motion.
In working with prospects, Koropchak was informed by the marketing personnel, the
owner prefers to hold onto this property. The HRA is requested to adopt the resolution
which will go to city council on 6/14/99. City staff received two appraisals on this
property. The Chadwick property (85 acres): $275,000 & $290,000 and Second:
$375,000 to $410,000. The Goeman property (95 acres): $305,000 to $325,000 and
Second: $440,000 to $495,000. The city would need to buy the property and perhaps the
HRA would manage & market the property.
A MOTION WAS MADE BY BRAD BARGER AND SECONDED BY DAN FRIE
TO ADOPT A RESOLUTION RECOMMENDING THE CITY COUNCIL ACTIVELY
PURSUE ACQUISITION OF THE GOEMAN/CHADWICK PROPERTIES FOR
INDUSTRIAL DEVELOPMENT, AND AUTHORIZE CITY STAFF TO BEGIN
PREPARATION THEREOF. Motion carried unanimously.
10.
Consideration of an update relating: to the non-certification and tax increment payment for
TIF District No. 1-18 and authorization of action if so determined.
Ollie Koropchak gave a brief review of the May 12 HRA meeting where the HRA was
informed of an upcoming letter from RDI. Attached is the RDI letter and my response of
May 27. Upon request ofRDI, this appears on the HRA agenda. Although the HRA
attorney received a copy ofthe May 27 letter. Koropchak later requested comments
from the HRA attorney as a reaffirmation to the May 27 letter.
Attorney Bubul agreed and mentioned the HRA could make amendments if saw fit but
basically agreed not to amend the contract. Ollie is 99% sure requirements will be met
and they will get the full amount. Koropchak stated the HRA should pay them the
amount they have coming total from last year and this year, this year. It may not need to
be amended.
A MOTION WAS MADE BY BRAD BARGER AND SECONDED BY DARRIN
LAHR TO CONTINUE FOR MORE INFORMATION.
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YEAS:
NAYS:
ABSTAIN:
Members Barger, Lahr and Frie.
None
Member Murray
Motion carried.
11. Consideration to authorize payment of monthly HRA bills.
The golf invoice was put under the marketing budget. Mainline bill belongs to EDA for
loan closing on 6/1/99. The company has reimbursed the EDA.
A MOTION WAS MADE BY BRAD BARGER AND SECONDED BY DAN FRIE
TO AUTHORIZE PAYMENT OF BILLS. Motion carried unanimously.
12. Consideration of Executive Director's report.
Ms. Koropchak reviewed the Executive Director's Report which was accepted.
Bob & Ollie went to visit Die Casting Co. regarding the 35,000 to 40,000 sq. ft. Last
week the prospect team individually met with Die Cast and looked at Monticello sites a
second time. Lenny Kirscht provided the uses and sources funding statement.
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Darrin Lahr commented these were very impressive individuals, very interested in
Monticello- looking at starting up new process and being closer to their vendors, airport,
etc.
Bob Murray stated there was a logistics problem and they were looking at Wisconsin, but
someone wanted to be closer to Watertown. He would carry more weight in this
discussion. Ollie stated they ruled out Wisconsin; Becker was also mentioned.
Koropchak also received an inquiry to NSP economic development, manufacturer of
refrigeration systems. She spoke with Paul at NSP who has not yet received follow-up.
Additionally, there has been contact with someone interested in leasing 3,000 to 5,000 sq.
ft., as well as interest in 75 - 100 acres by a larger user, who was locally recommended,
but no further contact.
Public Law Update: Ollie gave handouts on the Section in this book relating to TIF
enforcement.
Koropchak gave HRA members copies of the TIF plan for District 1-22.
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The budget and plan notes public utilities and public improvements are eligible
expenditures. Koropchak wanted to clarify improvements for Walnut Street were eligible
costs; however, the HRA' s prior discussion to allocate dollars for removal of blight areas
was acceptable.
13.
Consideration of Committee Reports
a. City Council/Brian Stumpf - Has no information. Ollie requested on behalf
of HRA, for guidance/direction from city council as to what council sees as
priorities of the HRA. Darrin Lahr asked that it was brought to the Mayor's
attention some concerns the they have on communication between the HRA and
city council. Stumpf stated he would convey these concerns to the council.
b. Community Center/Bob Murray: Small group has not met for 3 weeks, next
meeting is June 24th. We have new director of community center and the basic
layouts of the center. Nothing else to report on other than everything going
according to schedule.
c. MCP/Steve Andrews - Koropchak reported Amanda will work Mondays
and Fridays in the office with Joann Hagerson working opposite days while they
advertise. They are hoping to hire by 1 st of August.
d.
Marketing/Brad Barger and Darrin Lahr - Nothing new to report. Ollie reminded
them that the tour was canceled due to lack of interest, but Golf outing went on
with 14 golfers. Ollie would like to change this event to every other year.
e. North Anchor/Bob Murray and Dan Frie - Dan was unable to attend last meeting"-
Bob attended and stated they will retain Bridge Park as it is, as well as the area of
3 blocks along the water to remain as park land. Identified/targeted 5 year and
20 year boundaries and requested council commit to an annual appropriation of
$200,000 until all properties are acquired. Will be developing general principles
and guidelines for development of North Anchor allowing developers flexibility
for creativity. They need to define a short term boundary and identify the fact that
the park will remain as a park with a few changes. They also need to look at uses
and what they would like to see there, as well as define what goes where which
limits what a developer can offer. Would like to keep it "open" to ideas.
Compiled recommendations will be submitted to city council in July.
14. Other Business
15. Adjournment
A MOTION WAS MADE BY DARRIN LAHR AND SECONDED BY BRAD
BARGER TO ADJOURN THE HRA MEETING AT 9:55 P.M. Motion was carried
unanimously.
Chair, Bob Murray
Lori Kraemer, Recording Secretary
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~;::~~:
r.fl,fl.l.lWEST
GRAf'HICS & mf'ONSE SYSlcMS
MIDWEST GRAPHICS AND RESPONSE SYSTEMS
Additional Business Plan .
July 14, 1999
Phase One
Response and Fulfillment Business
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a. Building Occupied: 2/12/99
b. Job Creation Goal: 37
c. Jobs Created as of 3/26/99: 19
d. Average Hourly Pay: $8.32 plus fringes
e. Annual Payroll Addition: $328,806.00
Phase Two
Administration and Production Business
a. Projected Move Date: 9/1/99
b. Additional New Jobs: 40
c. Average Hourly Pay: $21.58 plus fringes
d. J\nnual Payroll Addition: $1,795.000.00
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3900 Annapolis Lane North ..... Plymouth, MN 55447 ..... Tel: (612) 933-3300 ..... Fax: (612) 933-5629
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HRA Agenda - 7/14/99
4.
Consent Agenda:
a) Consideration of the revised HRA Fund Summary for year ended 12/31/98.
This item requires no action by the HRA. The attached summary is a revision of the
summary given at the annual meeting. Wolfsteller and myself met with Ehlers &
Associates and thereafter the annual reimbursement of HRA internal notes for the
Remmele, Fay-Mar, and Polycast TIF Districts were applied and interest income was
applied to each active district. Most important, please note the cash balance as of
12/31/98 is $276,118. However, $150,000 is committed to an Industrial Development
Reserve Fund, TIP District No. 1-7 has an outstanding balance of $90,000 (payment of
$20,000 in 1999), and the Schlief contract for deed has a balance of $80,200 (payment of
$5,076.94 in 1999).
You this information as a guide for future planning.
1
HRA FUND SUMMARY -12/31/98
Cash Surplus (deficit) 1/1/98 $0 ($44,840) $0 $0 $32,361 $15,204 $85,418
REVENUE:
Taxes
Homestead credit
Loan Repayments-Principal
Loan Repayments-Interest
Tax increments $41,192 $68,588 $63,247
Interest income $2,195 $1,036 $3,849
Rental income
Escrow deposits - application fee
Transfer in from debt service $2,826
ITOTAL II $0 II $41 ,192 II $0 II $0 II $70,78311 $64,28311 $6,6751
EXPENSES:
Escrow reimbursement
Salaries
Fringe benefits
Dues, memberships
Legal publication
Travel, schools
Property taxes
Prof. services--Iegal
Prof. services--engr
Prof. services--misc.
Interest expense--debt
Planning - downtown study $15,338
Principal expense--debt
Misc. other expense
TIF loan (pay as you go) $20,000
Land acquisition - Schleif
Land acquisition - Hawkins
Transfer to debt service $31,750 $46,150 $37,265
Transfer to other funds - public
improvements
TOTALS $0 $31,750 $0 $0 $46,150 $52,603 $20,000
Cash Surplus (deficit) 12/31/98 $0 ($35,398) $0 $0 $56,994 $26,884 $72,093
ADDITIONAL NOTES:
Original (interfund) Loans $36,751 $32,000 $191,551
Orig. developer agreement obligations $150,000
Original bond debt $260,000 $365,000 $350,000 $155,000
Outstanding interfund loan balances as of
12/31/98 $0 $0 $0
Outstanding developer agreement
obligations 12/31/98 $0 $90,000
Outstanding bond debt 12/31/98 $200,000 $45,000 $220,000 $0
Loan/bond payments due in 1999 $0 $0 $0
Principal $15,000 $45,000 $20,000 $0
Interest $17,400 $1,172 $18,000 $0
# of years left to collect TIF -0- 11 -0- -0- 13 14 -0-
Total amts to be received (based on 1998
TIF) $0 $453,112 $0 $0 $891,644 $885,458 $0
F:lKARENDISPREADIFILE\HRASUM98.XLS: 5/17/99
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Page 1
HRA FUND SUMMARY -12/31/98
Cash Surplus (deficit) 1/1/98 $8,199 ($24,499) $34,260 $1,351 $3,826 $30,893 ($11,891 )
REVENUE:
Taxes
Homestead credit
Loan Repayments-Principal
Loan Repayments-Interest
Tax increments $5,657 $34,454 $41,515 $3,380 $17,837 $64,392 $13,102
Interest income $281 $874 $90 $171 $1,751
Rental income
Escrow deposits - application fee
Transfer in from debt service
TOTAL $5,938 I $34,45411 $42,38911 $3,470 II $18,00811 $66,143/1 $13,1021
EXPENSES:
Escrow reimbursement
Salaries
Fringe benefits
DUes, memberships
Legal publication
Travel, schools
Property taxes
Prof. services-legal
Prof. services--engr
Prof, services--misc,
Interest expense-~debt $400 $2,304
Planning - downtown study
Principal expense--debt $3,000 $43,090
Misc. other expense
TIF loan (pay as you go) $2,500 $56,472
Land acquisition ~ Schleif
Land acquisition - Hawkins
Transfer to debt service $23,460 $29,250 $18,635 $12,175
Transfer to other funds - public
improvements
TOTALS $3,400 $23,460 $74,644 $2,500 $18,635 $56,472 $12,175
Cash Surplus (deficit) 12/31/98 $10,737 ($13,505) $2,005 $2,321 $3,199 $40,564 ($10,964)
ADDITIONAL NOTES:
Original (interfund) Loans $23,000 $80,000
Orig. developer agreement obligations $25,000 $17,500 $311,000
Original bond debt $140,000 $165,000 $120,000 $75,000
Outstanding interfund loan balances as of
12/31/98 $2,000 $36,910
Outstanding developer agreement
obligations 12/31/98 $0 $0 $194,974
Outstanding bond debt 12/31/98 $40,000 $50,000 $65,000 $40,000
Loanlbond payments due in 1999
Principal $2,000 $20,000 $25,000 $15,000 $10,000
Interest $160 $3,007 $3,543 $3,737 $2,275
# of years left to collectTlF -0- 1 1 1 2 5 3
Total amts to be received (based on 1998
TIF) $0 $34,454 $41,515 $3,380 $35,674 $321,960 $39,306
F:lKARENOISPREAOIFILElHRASUM98.XLS: 5/17/99
1.16
Page 2
HRA FUND SUMMARY -12/31/98
Cash Surplus (deficit) 1/1/98 $12,791 $65,081 $37,786 ($5,216) ($15,422) $39,642
REVENUE:
Taxes
Homestead credit
Loan Repayments-Principal
Loan Repayments-Interest
Tax increments $12,373 $19,315 $18,403 $26,504
Interest income $767 $1,659 $963 $1,154
Rental income
Escrow deposits - application fee
Transfer in from debt service
TOTAL $13,140 I $20,97411 $19.36611 $0 II $26.50411 $1,154/
EXPENSES:
Escrow reimbursement
Salaries
Fringe benefits
Dues, memberships
Legal publication
Travel, schools
Property taxes
Prof. services--Iegal $67 $142
Prof. services--engr
Prof. services--misc. $67
Interest expense--debt $2,860 $2,619
Planning - downtown study
Principal expense--debt $79,387 $52,255
Misc. other expense
TIF loan (pay as you go) $7,427 $14,409 $32,500
Land acquisition - Schleif
Land acquisition - Hawkins
Transfer to debt service
Transfer to other funds - public
improvements
TOTALS $7,427 $82,247 $54.941 $0 $14,409 $32,709
Cash Surplus (deficit) 12/31/98 $18,504 $3,808 $2,211 $0 ($3,327) $8,087
ADDITIONAL NOTES:
Original (interfund) Loans $80,000 $75,000 $65,000
Orig. developer agreement obligations $48,000 $50,000 $102,000 $325,830 $130,000
Original bond debt
Outstanding interfund loan balances as of
12/31/98 $613 $22,745 $65,000
Outstanding developer agreement
obligations 12/31/98 $25,573 $50,000 $102,000 $308,926 $65,000
Outstanding bond debt 12/31/98
Loan/bond payments due in 1999
Principal
Interest
# of years left to collect TIF 4 6 7 6 13 23
Total amts to be received (based on 1998
TIF) $49,492 $115,890 $128,821 $344,552
F:\KARENDISPREADlFILEIHRASUM98.XLS: 5/17/99
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Page 3
HRA FUND SUMMARY -12/31/98
:::,:: :61$.*ii~::':.'.).'
;;:;:,':"':':':':-:':-:-:-:':':':-:'.
($5,463)
.::i::::ijl:~~llr~~~:::i:iiil:ii
'.i:i...{:~~::"!:.'}:.'
$0
$0
$0
$21,423
Cash Surplus (deficit) 1/1/98
REVENUE:
Taxes
Homestead credit
Loan Repayments-Principal
Loan Repayments-Interest
Tax increments
Interest income
Rental income
Escrow deposits - application fee
Transfer in from debt service
($279)
$14,830
Escrow reimbursement
Salaries
Fringe benefits
Dues, memberships
Legal publication
Travel, schools
Property taxes
Prof. services--Iegal
Prof. services--engr
Prof. services--misc.
Interest expense--debt
Planning - downtown study
Principal expense--debt
Misc. other expense
TIF loan (pay as you go)
Land acquisition - Schleif
Land acquisition - Hawkins
Transfer to debt service
Transfer to other funds - public
improvements
$174.732
$7.783
$1,605
$1.288
$3,000 $5,000 $5,000 $5,000
$0 I $4,28811 $5,000 II $5,000 II $5,000 II $198,950 I
$1,673
$11,670
$2,428
$13
$454
$734
$7,560 $3,108 $3,336 $4,784
$11,301 $5,565 $724 $1,050
TOTAL
EXPENSES:
$4,668
$37
$20,674
$56,468
TOTALS
Cash Surplus (deficit) 12/31/98
$0
($5,463)
$103,091
($99,082)
$8,673
($3,673)
$4,060
$940
$1,050
$3,950
$19,373
$201,000
ADDITIONAL NOTES:
Original (interfund) Loans $37,900 $63,000
Orig. developer agreement obligations $500,000 $492,000 $1,201,281 $69,490
Original bond debt
Outstanding interfund loan balances as of
12/31/98 $37,900 $63,000
Outstanding developer agreement
obligations 12/31/98 $500,000 $492,000 $1,201,281 $69,490
Outstanding bond debt 12/31/98
Loanlbond payments due in 1999
Principal
Interest
# of years left to collect TI F 7 25 9 25 9
Total amts to be received (based on 1998
TIF) $1,094,000 $1,334,756 $87,134
F;IKARE;NDISPREADIFILElHRASUM98XLS 5/17/99
~l:>
Page 4
HRA FUND SUMMARY -12/31/98
Cash Surplus (deficit) 1/1/98 $0 $280,625
REVENUE:
Taxes $14,830
Homestead credit
Loan Repayments-Principal $174,732
Loan Repayments-Interest $7,783
Tax increments $429,959 $86,145
Interest income $16,395
Rental income $1,288
Escrow deposits - application fee $18,000
Transfer in from debt service $2,826
TOTAL $0 I $665,81311 $86,1451
EXPENSES:
Escrow reimbursement $1,673
Salaries $11,670
Fringe benefits $2,428
Dues, memberships $0
Legal publication $13
Travel, schools $454
Property taxes $311 $1,045
Prof. services--Iegal $18,997
Prof. services--engr $0
Prof. services--misc. $240 $18,947
Interest expense--debt $8,183
Planning - downtown study $15,338
Principal expenseudebt $177,732
Misc. other expense $4,705
TIF loan (pay as you go) $133,308
Land acquisition - Schleif $20,674
Land acquisition - Hawkins $56,468
Transfer to debt service $198,685 $84,300
Transfer to other funds - public
improvements $0
TOTALS $551 $670,320 $84,300
Cash Surplus (deficit) 12/31/98 ($551) $276,118 $1,845
ADDITIONAL NOTES:
Original (interiund) Loans
Orig. developer agreement obligations
Original bond debt $560,000
Outstanding interiund loan balances as of
12/31/98
Outstanding developer agreement
obligations 12/31/98
Outstanding bond debt 12/31/98 $165,000
Loan/bond payments due in 1999
Principal $80,000
Interest $6,128
# of years left to collect TIF 1
Total amts to be received (based on 1998
TIF) $85,800
F:lKARENDISPREAOIFILElHRASUM98.XLS: 5/17/99
4E,
Page 5
.
.
.
HRA Agenda - 7/14/99
6.
Consideration of City Council recommendation to authorize preparation and solicitation of
a request for proposal for an over-all City Housing Study.
A. Reference and Background:
At the June meeting, HRA members heard a presentation from Harold Jesh, a housing
development consultant, who asked the commissioners as to their level of interest for use
of TIF assistance for a market rate rental complex. The request was for a Housing
District at a 20/50 criteria and 15 years of increment. The 18 to 24 unit complex included
fireplaces, double garages, etc.
The HRA commissioners deferred these questions to the Council: How does the Council
feel about providing TIF Housing assistance for market rate rental and owner-occupied
housing? How much assistance? At the June 28 Council meeting, council members
agreed with staff recommendation and directed the HRA to conduct a Housing Study to
better understand the housing needs ofthe City of Monticello for TIF and City Planning.
I believe the HRA is mislead by developers when a developer uses the word "market rate"
and then requests TIF assistance. In the case ofMr. Jesh's proposed project if 18 units
were constructed and using the 20/50 criteria, 4 units must to be rented to families oflow
to moderate income. If the system works, the rent for those 4 units would also be less.
Therefore, the entire project is not at market rate. This is not uncommon, as people refer
to Mississippi Shores and St. Bens as market rate. Remember, to create a Housing
District, the project must be a facility for occupancy in part by persons or families oflow
and moderate income as defined by the various federal legislative and regulatory
definitions. Up to 20% of the fair market value ofthe improvements may be for uses
other than for low to moderate income housing. Therefore, the question becomes one of
need. Is there a need for housing in Monticello for low to moderate income families?
According to HRA Attorney Bubul, true market rate housing is a project which receives
no assistance through TIF, tax credits, Section 8, first-time home buyers, etc. Mark Ruff,
Ehlers & Associates, says some communities use Housing Districts as a means of
economic development and limit the years of tax increment to 15 years.
Enclosed is a list from Mark Ruff of firms who conduct Housing Studies. In addition, I've
added the firm who conducted the HRA's Senior Housing Study in 1993 and the City
Planner Consultant who previously expressed interest. It is suggested, the HRA solicit
RFPs. It is very important that the BRA be involved in review or preparation of the RFP
to ensure the HRA obtains the information they're seeking.
1
.
HRA Agenda - 7/14/99
B.
Alternative Action:
1.
A motion authorizing preparation and solicitation of a request for proposal for an
over-all City Housing Study.
2.
A motion of no interest to prepare or solicit request for proposals.
3.
A motion to table any action.
c.
Recommendation:
This can be a useful tool for City Planning and for use of TIP or development of Scattered
Housing Program. Recommendation is Alternative No.1.
D. Supporting Data:
List of firms who conduct Housing Studies.
.
.
2
.
.
.
JUL 08 '99 11:09AM EHLERS & ASSOCIATES
.
EHLERS
& ASSOCIATES INC
TO:
Ollie Koropchak, City of Monticello
FROM:
Mark Ruff ~ Ehlers & Associates
DATE:
July 6, 1999
U:
Market Study Firms
P.2/2
MEMORANDUM
There are only a. few firms with whom 1 am familiar that are able to provide a comprehensive market stud)'
for housing. The contactS are listed below (~oannot confirm the spelling of some of the names):
Mary Bluold
Maxfield Research
612.338-0012
Scott Knutson
Community Partner. R.esearch
6S 1-777-1813
Mike Schoneker
E&V
6S 1-222-8356
Please call if you would like to discuss the firms further.
S~€-~ C;~
Nlf\~~o~~~
"S 'I '\ S W~ ~ ~ [ ucL
~ S'SS::,
S'L, Lo.~ 'Q~ (\0t\J\J SS l{ ( \0
from the tUsk of:
Mttr1e Ruff
Vice President
EhleN &- Associates, Inc.
3060 Centre Pointe Drive
Roseville, MN 55113
?~ \M~(,~0~
~ '\?\~ ~ ~~~
'\ ~ ~
'-\ ~<\ 0 L~~ ~~
~~, ~N SS4~Ce
~ Phone: (6H) 697-8505
~ ' ~"'D Fax: (651) 697-8555
E-Mail: mark@ehlen-inc.com
ilA
.
.
.
HRA Agenda - 7/14/99
7,
Consideration to authorize reconveyance of Outlot A. County Club Manor. to the State of
Minnesota and reapply for conveyance.
A. Reference and background:
Some years ago, Outlot A, Country Club Manor, was conveyed to the HRA from the State
as tax forfeited property. Because Cities create BRAs for the purpose of redevelopment
and housing, the property was placed in the HRA's name and not the City. More or less a
legal issue. The HRA members, at that time, agreed to using the name of the HRA in
principal only and the HRA was released of any debt or revenue obligations.
You will remember when the City went out for RFPs on this property a few years ago, it
was noted that the HRA must hold a public hearing for disposition oflands by law.
Additionally, the HRA heard a presentation for this parcel from Freedom Development
requesting TIF assistance along with their tax-credit application. Two RFPs were
returned to the City from Freedom Development and Hornig Development. Freedom
requested TlF assistance and Hornig did not request TIF assistance. Acceptance of the
RFPs was never completed by the Council and both projects fell apart.
It appears in a March letter to Mr. Wolfsteller that if tax-forfeited property is not put to
public use in five years, the property is reconveyed back to the state. Please see attached
letters and Rick will be present at the HRA meeting for further explanation.
The action requested by the HRA is for purpose of meeting the Minnesota Statutory.
B. Alternative Action:
1. A motion authorizing reconveyance of Outlot A, Country Club Manor, to the State
of Minnesota and reapply for conveyance.
2. A motion to deny authorizing reconveyance of Outlot A, Country Club Manor, to
the State of Minnesota and reapply for conveyance.
3. A motion to table any action.
C. Recommendation:
Alternative No.1.
D. Supporting Data:
Copy of March 12 and June 7 letter from Department of Revenue.
1
MINNESOTA Department of Revenue
Property Tax Division
.
.
.
Mail Station 3340
Phone (651)296-3155
St. Paul, MN 55146-3340
Fax (651) 297-2166
March 12, 1999
Co'-
~y
Rick Wolfsteller
City Administrator
City of Monticello
250 East Broadway
Monticello, Minnesota 55362-9245
Dear Mr. W olfstellar:
This is in response to your letter addressed to Linda Leitold, dated March 4, 1999.
Minnesota Statutes, Section 282.01, Subds. ld and Ie provide that if tax-forfeited
property is acquired by a local unit of government by use deed, and the property is not
put to the public use that is specified in the deed, the property is to be reconveyed
back to the state. If the property has not been reconveyed by the local unit of
government to the State of Minnesota within five years of the date of conveyance of
the use deed, the Department of Revenue is to begin the process of notice and
declaration of reversion. There is no provision for the Department of Revenue to
grant extensions beyond the five-year period allowed for putting the property to its
intended use.
The Monticello HRA should voluntarily reconvey the property acquired by use deed
dated January 22, 1993 (State Deed #178501). The HRA could then reapply for a use
deed for this same property, subject to another five-year deadline for putting the
property to its intended use. The Monticello HRA should consult with the Wright
County Auditor's Office to determine whether the county board would be willing to
approve another use deed for this property. The alternative is that the Department of
Revenue will begin the process of notice and declaration of reversion as required by
M.S. 282.01, Subd. Ie.
ZJJ 4 kfiWc-
Richard B. Gardner
Research Analyst Supervisor Senior
An equal opportunity employer
7mTDDc (65/) 215-00691 A.
JUN-10-99 THU 3:26 PM WRIGHT ATTORNEY
FAX NO. 6126827700
P. 1
INNESOTA Department of Revenue
.
. Property Tax Division
Mail Station 3340
Phone (651) 296.3155
St. Paul, MN 55146.3340
Fax (651) 297.2166
June 7, 1999
Brian J. Asleson
Assistant County Attorney
Wright County Government Center
10 2nd Street NW. Room 150
Buffalo. Minnesota S 5313 .1189
Dear Mr. Asleson:
This is in response to your letter of May 27. 1999:
... --- .----
It appears that there are two problems with the property conveyed by State Use Peed No.
178501. The first is that the Monti"ello RRA hl$ failed to p1,1t the property to the public U$O
stated on the deed. The second i. that tbe d.,4 it.olf dOli not authorize the HRA to ,onve)'
the property to a third party. The statement "Tho city hat made. and eontinues to ma~e,
attempts to find a suitable developer for this land" implies that the HRA would convey the
land if a suitable developer were found.
.
M.S. 282.01, Subds. Id and Ie provide that a governmental subdivision that acquired
property by use deed for a specified public must reconvey the property back to the state if it
fails to put the land to the specified public use within five years from the date ofthe state
use deed. This requirement is independent of whether or not the govemnlcntal subdivision
has abandoned that use.
Subd. 1 d provides that a sale, lease, transfer, or other conveyance by an HRA as authorized
by M,S. Chapter 469 is not an abandonment of use and the reconveyance provisions do not
apply. This is tr\\e if the .tate deed contains a .imilarly worded ,tatement. State Deed No.
178501 does not contain this language. Also. tho application f:rom the Monticello ltR.A for
this state deed makes no mention that the use is a M.S. Chapter 469 project.
Based on these considerations, the property that is the subject of State Deed No. 178501
should be reconveyed to the state. The Monticello BRA could then either nlake application
to the county board to purchase the property (in which case the HRA could do whatever it
wanted with the property) or it could make application for a new state use deed with the
M.S. Chapter 469 language that would allow it to sell the land to a. third party.
If you have any questions concerning this letter, please contact me.
.
Richard B. Gardner
Research Analyst Supervisor Senior
An. eqwfZl opponu.nity employer
JUk
TTY/TDD: (65}) 215.0069' 0 B
'1 ?-> 1.9~
~tI--rv OA>
,,0 ~t
.~z
\YlI
-21 ..y
'181515
OFFICE OF
WRIGHT COUNTY ATTORNEY
Thomas N. Kelly
&siatants
Anne L. MOMupt
Thomas C. Zins
Terry D. Frazier
Kathleen A Mottl
Scott M. Sandberg
Mwk A Erickson
Matthew G. Frank
Chad A Throndset
July 8, 1999
Wright County Government Center
10 2nd Street NW, Room 150
Buffalo, Minnesota 55313~1189
Brian J. Asleson
Chief. Civil Division
VictimlWilm181r
Aniatance Coordinator
Bwbara S. Johnson
Investigator
David Fundingsland
Legal &si.tant
Michelle Sandquist
Of/ice Manager
Cindy Hohl
Phone: (612) 682-7340
Toll Free: 1-800-362-3667 Fax: (612) 682-7700
Mr. Rick W olfsteller
City Administrator
Monticello City Hall
250 East Broadway
PO Box 1147
Monticello, MN 55362-9245
.
Re:
Outlot A, Country Club Manor
Dear Rick:
As we have previously discussed over the phone, enclosed are various forms necessary for
clearing up any problems with Outlot A of Country Club Manor, originally conveyed to the
Monticello HRA by a State Deed in January, 1993.
The first form is SD Form 975, to be used by the HRA to reconvey the property to the State of
Minnesota. Accordingly to the State, this is necessary because more than five years have passed
since the original date of conveyance, and the parcel has not been put to the approved use. Even
t.lJ.ough you and I disagree with the interpretation of this particular statute taken by the State, I am
recommending that the Monticello BRA authorize the necessary signatures for this reconveyance
document.
.
The other documents I am forwarding to you include a PT Form 962 and a PT Form 80. Either
of these forms can be used by the Monticello HRA to apply for a new State Deed for Outlot A,
County Club Manor. In the event you decide to use PT Form 962, you will need to clearly
describe that the intended public use will include a reconveyance to a private developer for
purposes of a project authorized under Chapter 469 of the Minnesota Statutes. The State Deed
that the BRA receives will then also note that reconveyance of the property will not trigger
reversion to the State. Using PT Form 962, however, will result in another five year check by the
Department of Revenue to see if the land has yet been reconveyed by the HRA.
. Mr. Rick W olfsteller
July 8, 1999
Page 2
If you decide to use PT Form 80, the application is somewhat simpler and there will be no restrictions
upon use of the land. From my conversations with representations at the Department of Revenue, it
sounds like the consideration for a purchase using PT Form 80 could be the same consideration as was
used back in 1992. This also assumes that the County Board will approve of the Monticello HRA
regaining the property by this method.
In looking at this, I believe either method would take care of the problem that we have been presented
with. The major difference would be having another five year check if the conveyance is for an
authorized public use.
Please let me know once the HRA has considered this matter, and we can get this back on a County Board
agenda. Please note that by copy of this letter to Doug Gruber, I am requesting that he supply you with
the original date that the property forfeited to the State (needed for either application form) and check to
see whether his office has the necessary "Wetland Certification form" called for in each application.
If you have any other questions or concerns in the meantime, please let me know.
.
Brian 1. Asleson
Assistant County
~
BJA:dls
cc: Doug Gruber
.
, .
0_........' of R_u. SOFo.... 975 IR.... 11 nSI
""....-I by AIt""'.., G__17.20-69
.
RECONVEYANCE OF FORFEITED LANDS TO STATE OF MINNESOTA
BY GOVERNMENTAL SUBDIVISIONS
WHEREAS, Pursuant to Minnesota Statutes, Section 282.01, Subdivision 1, the STATE OF
~~~~E~~o:~~~t~st~J1~fl~i~i'I'6ta<<~J'grn S8CJ.iga 21~~e,y~i'be meb.tT1~ut:t~i'l y
a governmental subdivision, the lands heremafter described, to be used for an authorized public use, and
WHER EAS, Said govemmental subdivision -has failed to put such land to the public use for which it
was conveyed _iiiiabl~I!lK~lbXlf!lIDDaIdiI)eIlolIlCtlXllmdC~ and now desires to
reconvey said lands to the State of Minnesota, as such tl'\lstee,
NOW, THEREFORE, This indenture, made this day of ,19.2.L,
between Monticello HRA a govemmental subdivision of the
State of Minnesota, as party of the first part, and the State of Minnesota, as tI'\Istee as hereinafter set forth,
as party of the second part,
WITNESSETH, That the said party of the first part, in consideration of the premises and other
valuable considerations, the receipt whereof is hereby acknowledged, does hereby Grant, Bargain, Quitclaim
and Reconvey unto the said party of the second part all the tract or parcel of land lying and being in the
County of tJ.,..-l gnt" in the State of Minnesota, described as follows, to-wit;
Parcel ID #155-033-000010
Outlot A. County Club Manor. City of Monticello
in tl'\lst as provided by Minnesota Statutes, Section 281.25, upon like conditions and with like effect as if
said lands had not been conveyed to said party of the first part as aforesaid.
TO HAVE AND TO HOLD THE SAME, Together with all the hereditaments and appurtenances
thereunto belonging or in anywise appertaining, to the said party of the second part and its successors and
assigns, Forever.
.
IN TESTIMONY WHEREOF'!!. SiJid party of the first part has caused these presents to be executed
in its corpora~ f}!ltr~:f~~ts Cua1rperSOn
and its e e Ul.rec 1:or and its corporate seal to be
hereunto affixed the day and year first above written.
In Presence of:
Monticello HRA
N..- of Go'illrn~t" Subdl"i.ion
8y
By
.Smb our d..... "or ."p/I".o/..
STATE OF MINNESOTA)
County of Wri iht ) ss.
, 19.2.2., before me,
within and for said county, personally appeared
and
to me personally known, who, being each by me duly swQrn sav'a that they are respectively
the chairperson and the execut:lve irector of the
govemmental subdivision named in the foregoing instrument, and that the seal affixed to
said instrument is the corporate seal of said govemmental subdivision, and that said
instrume~ was sjgned and sealed in behalf of said govemlJlental subdivision by authority of
its J:SoarCl and said . Cha:lrperson
and p1I'pl"11t"ivp c!i rpl"t"nr acknowledged said instrument to be the free
act and deed of said govemmental subdivision.
a g~t"lSry publf~y of
APPROVAL
The undersigned, acting for the Commissioner of Revenue of the State of Minnesota, under delegation
of authority duly filed with the Secretary of State, does hereby approve the foregoing conveyance to the
State of Minnesota.
.
Dated :
STATE OF MINNESOTA
In the Presence of:
Comml-.;o,... of R."."..
By
.
'PT FOI'Ul961 (Revlsa1101lJl96)
SUpJe AU Correspoadea(!4l
Mi...esota Depal1m.Qt 01 ReYftlllc
Application by a Governmental Subdivision for Conveyance of
Tax~Forfeited Lands for 20 Authori2ed Public Use
(Minnesota Statutes, Sec::tiOD 282.01, Subdivisions 1a through Ie)
(Note: Ifth. goverDmeDtalsubdivision has purchased the property, use PT Form 80)
In
County
Name ofgovemmenral subdiviSion (applicant):
Matling address of applicant:
Date requested property was forfeited to the State:
(manrh)
(day)
(year)
Legal description ofproJnrty (include the name of the city/town in which the p"Operty is located):
.
Describe the intended public use: to be made of the property (be specific, including statute or special law
references, ifrelevant);
State the need for the property (be specific, e.g., why this property instead of some other property?);
Pkase cluck the tlPProprUde boxes be/DW:
o
o
correcting govcmmentaj subd. name
ad/or
legal description
original dc:cd no.
(Jr recordtd., pI_ slIpply ~nIlDJ Iatonaado...
It Dot ~rded, plase "-1'11 tile ori&iaal stah dMd.)
o There are one or more wells on this property
o l'here are no wells on this property
.
A Wetland Certification Form Must Be Attached To This Application
~l..na applbtiola to: MN Department 01 RevC1lQC . Property Tax Divlsloa . Man Sladoa 3J4O . SL h.1. MN 55146-3340
~O.d
17O:iot 666t S [n[
6OeO-96l-tS9:X~j
X1:l1 Al<:l3dO&J
.
.
.
STATE OF l'vIINNESOTA
)
) S5.
)
County of
being first duly sworn, deposes and says that he/she is me
authorlzed representative of the applicant named herein, that he/she has read said application and knows the
contentS thereof; and thet the lI1.lI.tters stated therein an: we and COrrect.
Name
Title
Subscribed and sworn to before me this
day of
.19
Notary Public,
County, Minn.
My commission expires
RECOMMENDA nON OF COUNTY BOARD UPON APPLICATION
The County Board of
County, Minnesota, has reviewed the application
of
dated
. 19--" for the
conveyance for an authorized public use of certain tax-forfeited land described therein. The county board
recommends that this application be: rejected _ granted~,
Signature (for the County Board)
Date
CERTIFICATION OF COUNTY AUDITOR OR LAND COMMISSIONER
I have taken the n~ steps required by Minnesota Statutes to prepare the herein described tax~forfeited
land for conveyance for an authoriz.c:d public use.
Signature of County Auditor or Land Commissioner Date
OFFICE OF THE COMMISSIONER OF REVENUE
St. Paul, Minn., , 19
Upon due consideration of this application, it is ordered that it is hereby: rejected _ granted_.
Commissioner of Rc:veuue
By
l7O'd
SQ;17t 666t 8 rn[
6O~O-~-tS9;X~~
)(1;1 ^l~dO~d
.
.
.
PT Form 80
"ltaple All CGrrte$pOncience
Minnesota Department of Revenue
Auditorls Application For State Deed
For Purchase of Tax-Forfeited land
In
County
Please check appropriate box:
o he
o she
o they
Name(s) and
address of
purchaser(s) :
Date property was Data tax~forfeited
forfBited to Star.: - land was sold:
(month) (day) (year) (month) (day) (year)
Date Purchase pric8
liVas paid in full: Purchase pric9 $
(month) (day) (year)
Legal description of property:
Ple;w dJedc appropriate boxes berow:
Q single ownership
a co-ownership: jOint tenancy
Q co-ownership: tenancy in Common
a co-ownership: other than above
a correcting purchaser's name
and/or
Cl legal description
original deed no.
(If recorded, please supply recording information.
If not recorded; please rdum the original state deed.)
l:J There are one or more wells on this property
o There are no wells on this property
Wetland Certification Form Must Be Attached To This Application
I certify that the above information is true and correa and that therefore conveyance by quitclaim deed of the real
property described above should be executed by tile Commissioner of Revenue to the above named purchaser(s) as
required by Minnesota Statures, Section 282.01, Subd. 6, and Section 282.014,
signature 01 county audiro,
name of counry
daw of signatu~
Ref1lm apptication to:
(seal)
MN Department of ~ue.Propelty Tax Division -Mail Station 3340 . Sl Paul, MN 55146-3340
':::O'd
~:~T 666T 8 ynr
6O':::O-96(;-TS9:X~j
Xl::il A!(f3dOCld
.
.
.
HRA Agenda - 7/14/99
8.
Consideration of level of interest for use of TIF to assist a manufacturing companv.
A. Reference and BacklZround:
As reported in the June Executive Director's report, the Monticello Prospect Team had
visited Twin City Die Casting Company and company representatives have visited
Monticello twice. Last week, Twin City Die Castings made a commitment to the City of
Monticello subject to follow through by the City. The company looked at 15 communities
plus Wisconsin. The City of Monticello was the only city to offer a multi-funding
package. On July 7, the team players for financing the project met at City Hall: Jay Eller,
Twin City Die Cast; Lenny Kirscht, Funding Packager; Steve Sussman and Carol Pressley-
Olson, MN Trade and Economic Development; Charlie Pfeffer, Pfeffer Company, Inc;
Mayor Roger Belsaas; and Wolfsteller, O'Neill, and myself. Enclosed is a copy of the
preliminary uses and sources statement for the near 6 million dollar project. The company
has requested 6 acres of freeway exposure land and Pfeffer informed the group the
freeway exposure land was "not on the market". Eller is taking this information back to
the owners, Steve and Doug Harmon. Hopefully, this is not a deal breaker. Price ofland
south of Chelsea Road is $35,000 per acre.
On the preliminary uses and sources statement, TIF assistance is $245,000 for 7 acres.
However, based on an EMV per sq ft of$28.44 and assuming the HRA retain only the
10.25% for administration, the project is estimated to generate $225,000 NPV over 9
years. It is assumed the City or HRA will pledge up-front dollars from the General Fund
in the amount of $40,000, the amount ofthe estimated 10% Local Contribution Match.
The 40,000 for water/sewer hook-up or trunk fees.
Phase I of the proposed project consists of a 40,000 sq ft concrete facility: 3,000 sq ft
office, 16,000 sq ft die casting, and 21 to 22,000 sq ft machining space. 50 new jobs at
wage levels between $10 to $18 per hour excluding benefits for Phase I. Phase II
includes doubling the size of the die cast and machining space and the addition of another
150 jobs. Phase II anticipated in three to four years.
Although the company has not received nor returned the Pre TIF Agreement and $5,000,
the HRA is asked to give direction as to the level of interest and the amount of TIF
assistance. As you note the funding sources are multi. The company's annual sales are
41 million. In addition to the Monticello magnesium processing facility, the company is
also constructing a new facility in Mexico. It is my assumption, this is where the "but
for" test will apply.
.
HRA Agenda - 7/14/99
B.
Alternative Action:
LEVEL OF INTEREST
1. Yes, interested in providing TIF assistance.
2. No, not interested in providing TIF assistance.
AMOUNT OF TIF ASSISTANCE
1. Maximize the amount of tax increment generated for land write-down and site
improvements.
2.
Suggest a limited dollar amount
write-down and/or site improvements.
of TIF assistance for land
C. Recommendation:
.
Recommendation is Alternative No.1 in both cases as the project meets the objectives of
the HRA and City and maximizing the amount of tax increment allows staff flexibility in
finalizing the funding package subject to "but for" test findings.
D. Supporting Data:
Preliminary uses and sources statement and TIF estimates. Map with site options as
suggested by Pfeffer.
.
2
.
.
.
[0'd 11:::1101
TWIN CITY DIE CASTING
EQUIPMENT FINANCING
USES OF FUNDS
OFFICE & BREAK AREA
DIE CAST EQUIPMENT
MAINTENANCE & QUALITY
TOOL, TUMBLlNO &. MATERIAL HANDLlNO
CONTINGENCY & SOFT COSTS
115,000.00
2,900,000.00
318,500.00
457,000.00
200,000.00
TOTAL
SOURCES OF FllfIDS
BANK FINANCING
SBA 504 LOAN PROGRAM
STATE OF MN INVESTMENT PROGRAM
CENTRAL MN FOUNDATION
GREATER MONTICELLO FUND
EQUITY CAPITAL ·
TOTAL
COLLATERAL COYDtAGE
Estimated FF&E and Inventory Value (full cost)
Less: Bank Loan
Total Excess Collateral
Less: SBA Loan
Total Excess Collateral
s
$
s
ESTIMATED DEBT SERVICE
BANK FINANCING
SBA S04 LOAN PROGRAM
STATE OF MN INVESTMENT PROGRAM
CENTRAL MN FOUNDATION
OREA TER MONTICEllO FUND
EQUITY CAPITAL ·
3,990,500.00
1,995,250.00
1,000,000.00
400,000.00
150,000.00
100,000.00
34S~.OO
3,M,M..
3,990,'00.00
1,995,250.00
1,995,250.00
1,000,000.00
995,250.00
24,740.00
12,130.00
4,440.00
1,780.00
1,460.00
TOTAL
ANNUAL
[0/~0'd ~9~~16S~19
)11- !1:I8 ll::lNO t H:IN >l~Ud
44,550.00
534,600.00
9A
6~:60 6661-G0-Nnf
.
.
.
TWIN CITY DIE CASTING
REAL ESTATE PRQD.CT
USES OF FUNDS
LAND ACQUlSmON.. 7 acres @ S35,OOO/acre
BUILDING CONSTRUCTION.. 40,000 sf@ $40/sf
CONTINGENCY & SOFT COSTS
245,000.00
1,600,000.00
160,000.00
TOTAL
SOURCES OF FtJNDS
JNDUSTJUAL BOND PROGRAM
EQlJ!ITY CAPITALlTAX INC. PINANCING *
2,005,000.00
1,704.250.00
300,750.00
TOTAL
COI..LATI'.RAL COYEaAGE
Facility Value (cst. value)
Less: 1st Mortgage
Total Excess Collateral
LTV for Industrial Bond Program
s
s
ESTIMATED DEBT SERVICE
lNDUSTRIAL BOND PROGRAM
l!QU11Y CAPITALlTAX INC. FINANCING *
1,II5,M...
2,90S,OOO.OO
1,704,250.00
300,750.00
85%
13,470.00
TOTAL
ANNUAL
r~'4 V9~216S219
>N:l8 "1:N) I J.1:lN >Wd
13,470.00
161,640.00
<iO
6\1: 612l 6661-eeJ-NIl!
.
.
.
J UN. 2, 1999 10: 11 AM
ihIoorsMll~_ I,."
E H L E R S & ASS OC, i_lIII HAA: $hingcllM 200Iu.I. Induslrial
CITY OF MONTICELLO. MINNESOT^
T.J,f. CASH FLOW ASSUMPTIONS
NO.4213
P. 2
7.500"10
1.31i7Q PlY 01
0.0000%
Interm Rate
Tax Exlen510n ROlle:
Inllalion Rile:
---!~. .
171
BASE V ALliE INFORMATION
Pay 9<1 pay 99 Clas&
wue Value "-te
" .----, i4%13~4%
'T!!."-! -.
Ol1linlll T. ~1IpUiIJ ll'illaUon 'ICIOI;
1ClO.~
Tax
C!lpa~
o &II"*- gnly
...~
_ 0 I!sllmeltd Pay 88 Tax capacilY
PROJECT V.4.LUE INFORMATION
Type of Tax lnc:tef'lel'll Dialrict: ECOI'lOlTllc CevelopnMInl
Type of De\IoIQpment M.,,!JfICl,Uring
l\Iumber of Suikling Sqllare Feet 40,000
Estimatlld Marker Vallle at New Proj.ct
Class lIlalo QI1 fllSt $150,000 or r.1arql vu.e
Clalil Rata Markel Vlllue .. $150.000
b\lmaled Tax Cipaclty:
EstilNlt.ed Tues;
A5seHar'B Mar1<.et Vallie/So.!.
TueslS.f.
2.40'Y.
UO%
ASSUlTIlI "ilbid 1& approve4 In July. 1999.
PI_. variry market velua ror ...,85 ana iVlOO for live YMllnftadon valull.
ASlUI!le$ 25% p~ iIIlMU/T'leIIl d ineremenl aa rlf Jon. 2. 2000.
1,137.500 pay 02
37,175 Pay 02
41,94a
528....
S1.22
1'"
P8;o 1 20Q10!i9!i. WIU
JUN. 2.1999 10:11AM
EHLERS & ASSOC. _iIoHRA:~2llQluf.lncI..._
NO.4213
P. 3
. CITY OF MONTICELLO, MINNESOTA
TAX INCREMENT CASH FLOW
r -. ... .. --. .____n___ Project Clptt,lrecl SemloAIllll.W .-- - Admin ~'~nual! Local I V"I$ I
, Base "ItA
~RIOO BEGINNING Tax Tu T_ Groc, Tas. .-: ., Net TIP" I MlItdul or PERIOD ENDING j
Yrs._~!,"~~rI . C!lP~lY Capaelty Incrll!':'!"t to.2S01:, tD.O'llo Inctlm~nl : 10.0ll~.~ Increment Y/1I. M1h. Yr.__
I ll.O Ol-ot t999 0 0 0 0 0 0' 01 0.0 O.S 02-01 2000
I 0.5 02-Ot 2000 0 0 0 0 0 o 0: 0.0 1.0 08..ot 2000
I t.O 01-01 2COO 0 0 0 0 0.0 1.5 02-01 2001
! 1.5 02-01 2001 0 '.2N 8.2.. 11.'" (127) (112) ",880 e12! 0.5 2.0 01001 2001
I 2.0 ~1 2001 a.119 (627) (812) 4,880 a12' 1.0 2.5 02-01 2002
I
2.~ 02.01 20~ 0 S7'.t7'5 S1. 1 75 201."1" (2.509) (2......" 1..$HI 2,....1i 1.5 3.0 08-01 2002
3.0 08-01 2002 24.474 (2,509) (2,<147) 1 U181 2,<147, 2.0 :u 02.01 2003
:'U 02001 2~ 0 S7',115 31.175 201."74 (2.50$) (2......7) 19,$18 2.....1 2.5 4.0 01-01 200~
4.0 08-01 2003 24.474 (2,508) (2....7) 111.518 2.<1411 ~,O ".$ 0:.01 2004
".5 02-01 2004 0 37.175 37, t75 201.474 (2.501) 12.....,) 19,518 2,<147 3.5 5.0 OUt 2~
5.0 0&-01 200<1 24,474 (2,509) (2.647) 18.51S' 2.447 4.0 5.5 02.01 200S
5.S 02-01 2005 0 31,175 37,175 24.474 (2.509) 12.....,) 19,518 ! 2.447 4.5 11.0 08-01 zOOS
5.0 08-01 2005 24.474 (2,508) (2....,) 19.51S i 2.4ot7 5.0 6.5 02-01 200&
U 02.01 200s 0 37, t75 37.175 24.47" (3.509) (2.....7) 18,518 2,"'7 5.5 7,0 O&oOt 200&
7.0 Q8...O 1 2008 24.474 (2,508) (2....7) 19,5l11 2.447 6.0 7.5 02-01 2001
1.S 02.01 Z001 0 37.175 37,175 24.47-4 (2,::i09) (.2,4-47) lUl. 2....7 8.5 '.0 01.01 2007
ao Os.ol 2007 24.474 (2,S08) (2,<147) 11,518 2.441, 7,0 U 02.ot 2008
U 02.01 2001 0 ~7, 175 31,11$ 24,474 (2,508) (2,"'71 19.5t' 2."411 1.5 '.0 08-01 20015
0,0 OMl 2008 24....74 (2,509) (2,....7) 18,518 2,447: ..0 9.5 02-01 2009
I 9.5 02-01 2009 0 37.175 37.175 .24,474 (2,SOil) (2,...n 19,518 2.441 ! ..5 10.0 08-01 2009
: 10.0 01.01 2OOi_ 24.474 (:?,_~9). (2.447) .. ._ le,S18 2....7 9.0 10.5 .~:O' 2010 ,
TolaJ& 40.;'..12.3 (41.392) (~.1!!l__ .3...22.114": 40,312 i
.... .....--..--.. -- - Present V~uu 2~~.L... .. (25.134) (25,204) 201 ,003, - r H' uJ
.
.
~b
iIlloI".-.:l AI__ I/'Ill,
'.2 2llOkl!l9li,WK4
MONTICELLO COMMERC
CITY. ,OF ,MONTICELLO,.
. ' LOT SURVEYS
lAND SURVEYORS COMP ANY. ..INC.
N
pfJlCEL NO. ,000171 .. 15.718 Od'R
pAAC(l. ..0. 00017'1 N. 01 a. .. 26.1150 '
p,oJlCn NO. 000171 S of Cl .. ~ <
1Iv'1:1t .,
,'S'A '
~/~
pol,RC(L NO, 000101 ..15,.12 -- .
po>Jl(n NO. 000 lOIN. 01 Cl .. 7.32& 0
ploRClL ..0, ,000101 $. 01 Cl .. a,oM 0
I,
'plollCn NO. 000111 '..7.l14O ..c...
>>C'
,).
. .-
tol<t~
",,at 'i
....,
~ . - ~ . ~4.& - :- -: .... -
'g . , S
'$ MONTICELLO ".
'.. UlO2 _ 2' ~
.. c _ _ -~, . - - - - .
Ql.H)~J' ...JlQ
.. .
66.935 Acres
(Including Road)
.. . - - -~ . - -' -
I " cor.encE'.
..
;. CENTER 3RO '!
'.1 ;:' ".
.ADOlTION
~..,... (....,
. ,_. ,~.:;r.' _.' ,.
p. '--~iDO~;'---4" ....'
'i IIONTl:;EllO', , .i-
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.;, ~~IST .1 ;;,
_'._'!P"1;~_____
.,..
I
'+
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o
co
'SCICIOL
r'
~.
I
'+
Co SITE #2
t-
t-
. .
. .,
",
.. .
-'
360'+/..
~ ~ FttT
. .. 2 '. 400
1 '
~OO
-~.......----~~--
,
-'~-----~
.~---'
: tOl '!i.. ,IM, l..ot (...~....t.i'. . III( \,':5( ,.,tACt!.. N;.!!i;
0::' ,~_ 1,""I_UV ,.:JI(~C,s. . '.
~E-:-~"-lif~--~
,e-
.
.
.
HRA Agenda - 7/14/99
9.
Consideration to approve amending the Private Redevelooment Contract between the
HRA and RDI subiect to release of any claims against the HRA.
A. Reference and Background:
As you recall in the June HRA agenda supplement, it was suggested not to amend the
Private Redevelopment Contract between the HRA and RDI at that time. The wait and
see approach was suggested in order to determine compliance of the July 1, 1999
requirements and to receive payment of tax increment from Wright County.
Excerpt from the Contract: ARTICLE III, Soil Corrections, Section 3.3. Financing of Soil
Corrections., (d) If at least 90 percent of the number of Phase I single family and
twinhome units required under Section 4. 1 (b) hereof have been constructed as of January
2, 1999, and if the assessor's estimated market value for Phase I meets the requirement of
Section 4.1 (c) hereof on July 1, 1999 (collectively, the "Phase I Requirements"), then on
Payment Dates August 1, 1999, through February 1,2002, the Authority shall pay to the
Redevelopment 80 percent of the Available Tax Increment applicable to each Payment
Date; provided that the aggregate sum of all payments under paragraphs ( c) and (d) of this
Section shall not exceed $81,600.
You will recall ifTIF District No. 1-18 had been certified in March 1995, it was estimated
RDI was entitled to tax increment payments in the amount of$20,395.98 on August 1,
1998 and $20,395.98 on February 1, 1999, per the Contract. However, because the
district was not certified by the county on a timely fashion, the HRA received no tax
increment for payable 1998 from Wright County and RDI received no payment.
Findings for compliance:
Requirements: 4.1h 90% Phase I completed by January 2, 1999
3.3d 41 single family means 36.9 (38 completed, 3 not)
24 twin home (48 units) means 21.6 (21 completed, 3 not)
Requirements: 4. 1 c by July 1, 1999.
Single family aggregate EMV $4 million and each at least $95,000 L&B
(Aggregate EMV $4,668,400 and two homes less than $95,000) $92,400 and
$94,600.
Twin homes aggregate EMV $4 million and each unit at least $80,000 L&B
(Aggregate EMV $4,400,600 and all units over $80,000)
Tax Increment payment to BRA
The HRA received a tax increment payment of $48,245.78 for the 18t half of 1999 for TIF
District No. 1-18. Per the Contract, RDI is entitled to $34,736.90 (80% of the Available
1
.
HRA Agenda - 7/14/99
Tax Increment) on August 1, 1999. And assuming all residences pay their second half
taxes for 1999, RDI would be entitled to $34,736.90 on February 1,2000.
Assumption of payments if district were certified:
Estimates $20,395.98 (75% of Available Tax Increment - August 1, 1998
$20,395.98 February 1, 1999
$34,736.90 (80% of Available Tax Increment - August 1, 1999
$ 6,071.14 February 1,2000
$81,600.00 Aggregate sum of all payments not to exceed $81,600 through
February 1,2002.
Per the Contract, RDI is not entitled to the remaining $20,400 of the total $102,000
assistance until and beginning August 1, 2002, upon compliance of the contract terms
and conditions.
Amendment
.
Amend ARTICLE III Soil Corrections, Section 3.3 Financing of Soil Corrections, (d) to
read: ..................... the Authority shall pay to the Redeveloper 100 percent of the
Available Tax Increment applicable to each Payment Date; provided that the aggregate
sum of all payments under paragraphs ( c) and (d) of this Section shall not exceed $81,600.
The motion to amend subject to RDI releasing any claims against the HRA. See attached
letter.
Assumption if amended:
$43,421,20 (100% of Available Tax Increment - August 1, 1999
$38,178.80 February 1,2000
$81,600.00 Aggregate sum of all payment not to exceed $81,600 through
February 1,2002.
B. Recommendation:
1. A motion to approve amending the Private Redevelopment Contract between the
HRA and RDI subject to release of any claims against the HRA.
This motion also authorizes Kennedy and Graven to draft the amendment and
authorizes the HRA Chair and Executive Director to execute the document.
.
2.
A motion to deny amending the Private Redevelopment Contract between the
2
.
HRA Agenda - 7/14/99
HRA and RDI.
3. A motion to table any action.
C. Recommendation:
Through no fault of the BRA, RDI did not receive any available tax increment payment in
August 1, 1998 and February 1, 1999. Staff does realizes this has an impact on RDI and
therefore recommends Alternative No.1. Alternative No. 1 allows RDI to receive the
aggregate sum of$81,600 on February 1,2000, same as illustrated under assumption of
payments if district were certified. RDI satisfied the construction and EMV requirements.
D. SUPl'orting Data:
Letter to Rick Murray, RDI.
.
.
3
i
~6 .,
~.~".."-.
~
July 9, 1999
MONTICELLO
Mr. Rick Murray
Residential Development, Inc.
15 Choctaw Circle
Chanhassen, MN 55317
RE: Private Redevelopment Contract between the HRA and ROI
Dear Rick:
.
Enclosed is a copy of the HRA agenda supplement for their meeting of July 14, 1999. The item was
written after receiving a tax increment payment for TIF District No. 1-18 from Wright County, assessing
the Phase I requirements for completion of the number oftwinhome units and single-family homes
constructed, assessing the Phase I requirements for the aggregate EMV of the twinhome units and single-
family homes and each unit and each single-family home, and per a telephone conversation with HRA
Attorney Steve Bubul. My assessment of Phase I is that ROI has completed Phase I satisfactory to the
terms and conditions of the contract.
Due to no fault of the HRA, the HRA was unable to make payment from available tax increment to ROlon
August 1, 1998 and February 1, 1999. However, as Executive Director of the HRA, I recognize the
impact this has on ROI. Therefore, I'm proposing to the HRA commissioners that they amend the Private
Redevelopment Contract as outlined in the agenda supplement subject to RDI releasing any claims against
the HRA for non-payment of tax increment for payable 1998. Because the HRA did not default on the
contract, there is no legal obligation for the commissioners to amend the contract.
Rick, should you have any questions, please do no hesitate to call me at 271-3208. The HRA must take
action on this item on July 14 prior to the reimbursement payment date of August 1, 1999. Please
respond.
Sincerely,
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO
.
6~ \<&t~i)~
Ollie Koropchak
Executive Director
c:
TIF District No. 1-18
Attorney Steve Bubul
q~
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
.
HRA Agenda - 7/14/99
10.
Consideration of request from HRA to City Council for Budget Process -Year 2000.
A. Reference and Background:
Attached is a letter to Department Heads relating to the budget process for year 2000.
Since the HRA has a relatively small amount of cash funds, perhaps the commissioners
should give some thought into future objectives:
1.
2.
3.
4.
5.
6.
7.
.
.
Support resolution for acquisition of industrial land with dollar
commitment.
Scattered Housing Program.
Housing Study.
Support North Anchor recommendation for annual appropriation of
$200,000.
Suggest $100,000 in City General Fund for Water/Sewer Hookup (Local
Match)
Marketing?
Does the HRA want to exercise their power to levy?
1
C ltuL \.( C5'J) P cA,uJ.,-.
MONTICELLO
MEMO
TO:
Department Heads and City Staff ~
Rick Wolfsteller, City Administrator..... ~
FROM:
DATE:
June 21,1999
RE:
Updates to Capital Improvement Program Budget - Year 2000
As part of the 1999 budget process, a five year Capital Improvement Program was included for Council
information. With the year 2000 budget soon to be started, I am asking all department heads and staff to
review the present CIP budget and make notations of any changes and/or new items that need to be
.nsidered as we extend this budget out an additional year.
For this upcoming budget, I will be looking at ways of modifying the CIP budget document to better reflect
the annual cost of these various projects or improvements and how they relate to our property tax levy each
year. Attached is a copy of our present CIP budget document that you can review along with additional
blank worksheets that each of you can use for additional items or modifications that need to be made. If you
are aware of the funding source that will likely be used for the equipment, or improvement, please note it on
the worksheet. If you are not sure, simply note the expenditure or estimated amount and I can complete the
balance.
All staff and department heads should begin preparation of your capital outlay items including various pieces
of equipment, vehicles, and/or improvements as soon as possible. While I recognize that many of the items
you may have included in the CIP budget are also part of our regular budget for the year 2000, I would like
to get a head start on the CIP budget updating by the middle of the July.
If you have any questions, please contact me.
Attachments: CIP Budget
Worksheets
.
'0 ~
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
.
.
.
11.
Consideration to authorize payment of month HRA bills.
Recommend motion to authorize payment.
1
HRA Agenda - 7/14/99
.
.
.
WILLIAM J. SWING
Information Services Director
Wright County Government Center
10 N.W. 2nd Street
Buffalo, MN 55313-1193
Phone: (612) 682-7316
E~mail: wjs7316@Co.wright.mn.us
~ V\~
'\ ()~~
INVOICE 99-67
o ~@~U~~~I
- JUN 1 7 1999 D
June 16, 1999
~~
City of Monticello
Attn: Ollie Koropchak
250 E Broadway
P.O. Box 117
Monticello, MN 55362
271~3208
__________________~____~__ INVOICE ---------------~-----~----~--
Parcel Information for a Specific Plat within the City of
Monticello: Minimum Charge ~ $ 12.00
PLEASE PAY
$ 12.00
Please remit to: Wright County Auditor
Wright County Government Center
10 2nd St. N.W.
Buffalo, MN. 55313
Equal Opportunity I Affirmative Action Employer
II A
Monticello HRA
PO Box 1147
Monticello MN 55362-9245
June 14, 1999
rtll\\ Y
G?
.
MC100-05
CITY-WIDE PROFORMA
Invoice # 16178
Hours Amount
5/18/99 MTR Discussions with with Ollie
5/26/99 MTR Meeting with Ollie and Rick on reporting forms
0.50 52.50
2.25 236.25
2.75 $288.75
Total Due This Month:
$288.75
Total Balance Due:
.
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
- .1 I'-
II B-
.
I
\t\2-~ r
c.?
Monticello HRA
PO Box 1147
Monticello MN 55362-9245
June 14, 1999
MC100-01
GENERAL
Invoice # 16177
Amount
Total Balance Due:
\fn~ '0-
\, " \ \ ,v-.-CO -
Y\^~ ~
((
$78.75
($52.50)
$26.25
Previous Balance:
5/13/99- Payment - thank you
v
.
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
It c;,J-'
~
. ~ Silver Springs Golf Club
i\\~(~
tc.~ ~~
P. O. Box 246, Monticello, MN 55362
Phone (612) 295-2951
lDCLuncheon
Wednesday, June 9, 1999
27 for lunch $175.50
($6.50 per person/includes 6.50/0 tax and 15% gratuity)
Total $1.75.50
.
.
.-.,.
, I D
.
MONTICELLO
Date:
Invoice Number:
Invoice To:
Invoice Amount:
. Invoice For:
Monticello Area Chamber of Commerce
205 Pine Stmet
P. O. Box 1 ~12
Monticello, MinncsotiJ 5Ci3G2
Phone (612) 295-2700
Fax (612) 295-2705
June 8, 1999
99-085
City of Monticello
Ollie Koropchak
PO Box 1147
Monticello, MN 55362
$800.00
Chamber Golf Outing
Hole Sponsor (includes 1 free golfer) 11 \ SO
Additional 13 Golfers <l 11 'iiC . oQ
f{
,
,
Due upon receipt. Thank you for your support!
^~,,'J-~ ~ (.)
~ a-r\'
~. O-J'
<(;0
.
1lE:
KENNEDY & GRAVEN
.
Chartered
200 South Sixth Street, Suite 470
Minneapolis, MN 55402
(612) 337-9300
CLIENT SUMMARY June 8,1999
City of Monticello
Ollie Koropchak
City Hall
P.O. Box 1147
Monticello, MN 55362-9245
Through May 31, 1999
MN190-00078: Community Center-Post Closing Issues
Services Rendered:
Disbursements:
Balance Due:
.
!are. under p9naltV of law I
that this account, <;lain'! or dQn1l!f1(
Is just and that nc part.
ofit (
~~y
\ _ 'd- ')/
$
642.60
$
$
640.45
2.15
$
642.60
D ~:~::~ ~
lit
.
.
.
KENNEDY & GRAVEN
Chartered
200 South Sixth Street, Suite 470
Minneapolis, MN 55402
(612) 337-9300
June 8, 1999
City of Monticello
Ollie Koropchak
City Hall
P.O. Box 1147
Monticello, MN 55362-9245
MN190-00078: Community Center~Post Closing Issues
Invoice # 30079
Through May 31, 1999
For All Legal Services As Follows:
05/10/99 DJG Draft letter to 0 Koropchak re pending TIF
legislation.
05/13/99 DJG Preparation of TIF pledge materials.
05/17/99 sm Conference with DJG re TIF law changes,
agreement re community center.
OS/20/99 DJG Prepare TIF Pledge Agreement
OS/20/99 SJB Conference with DJG re TIF for Community
Center.
Total Services:
For All Disbursements As Follows:
05/l 0/99
05/10/99
Photocopies
Postage
Total Disbursements:
Total Services And Disbursements:
0.30 36.00
3.20 384.00
0.25 34.75
1.20 144.00
0.30 41.70
$ 640.45
$
1.60
0.55
2.15
$
642.60
Il G
.
12.
-.
-~
lIRA Agenda - 7/14/99
Executive Director's Report.
a) 3 Walnut Street - See attached letter to Tammy Hacker. As of today, the HRA
has received $450 of the $550 July rent.
b) Quick TIF Software - I'm beginning to enter the TIF information for aU districts
on the Municipal and Authority Reporting Forms for submission to the State
Auditor by the August I, 1999 deadline.
c) TIF pay-as-you-go reimbursements will be paid on August 1, 1999. Per the
Wright County schedule, no taxes were collected from Custom Canopy for the 1st
half of 1999; therefore, no reimbursement.
d) Potential industrial retention and expansion projects - Aroplax, 14,000 sq ft; Tire
Service Equip Mfg, 12,000 sq ft; H-Window, ? sq ft; Electro, fire replacement.
e) IDC Banquet _ Governor Jesse Ventura has been invited as guest speaker. No
response yet.
f) lIRA members are invited to join the City Council on a tour ofthe High School
and Community Center on Monday, July 19,3:00 p.m. Meet at the school.
g) Grassl walkway _ W olfsteller and Koropchak met with Bill Grassl. It appears an
unwritten agreement of $6 per square foot as purchase price. Bill suggested the
walkway jog to the left and continue along Brad Larson property to the east. We
need to meet with Larson. Koropchak to set up.
h) WolfsteUer and Koropchak met with owners of the known Goeman property to
hear their asking price. They appeared open to contract for deed or other than
cash option. Wolf steUer to set up meeting with Chadwick, next step.
i) Prospects:
75/100 acres _ This company has placed their relocation expansion plans on hold
for 2 to 3 years. Wanted freeway exposure.
125+ acres _ Monticello continues to be on the list of six communities for site
selection. Site selection in 2000. Looking for partnership with a city.
Manufacturing.
230,000 sq ft handicap bus carrier - Will meet with business, builder, Charlie
Pfeffer, and staff on Wednesday, July 14. Want about 20 acres of freeway
exposure industrial property.
New 20,000 to 24,000 sq ft _ Manufacturer of hot water products. Existing 12
jobs, total of 25 within two years. $9 to $20 per hour. Ability to double in size.
Relocation and expand.
Manufacturer of refrigeration systems - No new information. Through NSP.
50,000 sq ft, 50 to 60 jobs.
3,000 sq ft leaseable space - Referred to Barger and Morrell.
j) DAT _ Koropchak filling in for Rita. Preparation ofDAT agendas.
k) Marketing _ Behind on mailing brochures. Marketing Committee needs to meet to
assess and plan for next efforts.
1) Ed Kauffmann _ 20-unit owner-occupied housing project. Concept in quads,
doesn't meet redevelopment district criteria, maybe housing district. Have not
heard back since HRA presentation in June.
._'_" __ ._. - "_,, _._ .------'u_ "._ ..-
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m)
n)
0)
.
.
HRA Agenda - 7/14/99
p)
Brad Larson 28 unit low to moderate income housing project - still pending second
round of tax credit funding.
North Anchor report by Frie - They are done meeting. Met their objective.
GMEF Loan to Lake Tool was behind since January. Called, now paid through
June. This was interest only, principal deferred.
HRA commissioners per new legislation, the HRA/City must have in place policies
for business funding programs such as TIF, loans, etc. This will be on the August
agenda.
.
.
June 17, 1999
--
MONTICELLO
Tammy Hacker
3 Walnut Street
Monticello, MN 55362
RE: House Lease for 3 Walnut Street.
Dear Tammy:
This is a follow-up letter to let you know that the City of Monticello appreciates your quick
response to removal of the debris and unlicensed motor vehicles from the property located at 3
Walnut Street. Additionally, I was informed by the Utility Billing Department that the delinquent
utility bill was paid in full. And lastly, the HRA did receive the check for the past due rent from
WCCA so everything appears in order.
Should you have any questions, please call me at 271-3208. Good luck and enjoy the house.
Sincerely,
HOUSING AND REDEVELOPl\I1ENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO
C)~ ~<f)
V~
1&\ A
Ollie Koropchak
Executive Director
c: File
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