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HRA Agenda 07-14-1999 . . . 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 . . . e) Marketing - Darrin Lahr and Brad Barger 14. Other Business. 15. Adjournment. . . . 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. . . . . 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. . 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. . . . 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. . 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. . 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. . . . . 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 . . . ~;::~~: 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 . 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 . 3900 Annapolis Lane North ..... Plymouth, MN 55447 ..... Tel: (612) 933-3300 ..... Fax: (612) 933-5629 . . . 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 "lit 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 $344,552 F:\KARENDISPREADlFILEIHRASUM98.XLS: 5/17/99 ~(." Page 3 HRA FUND SUMMARY -12/31/98 :::,:: :61$.*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- . C(lIM:C . .;, ~~IST .1 ;;, _'._'!P"1;~_____ .,.. I '+ M C") C") 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_ "._ ..- . 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