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HRA Agenda 09-08-1999 . AGENDA MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY Wednesday, September 8,1999 - 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. STAFF: 1. 2. 3. 4. . S. 6. . Treasurer Rick Wolfsteller, Executive Director Ollie Koropchak, and Recorder Lori Kraemer. Call to Order. Consideration to approve the August 11, 1999 HRA minutes. Consideration of adding agenda items. Consent Agenda. A. Consideration to approve amending the Amended Bylaws of the Housing and Redevelopment Authority in and for the City of Monticello, Minnesota. Consideration of items removed from the consent agenda for discussion. Public Hearing and consideration to adopt the Business Subsidy Criteria for the Housing and Redevelopment Authority in and for the City of Monticello, Minnesota. 7. Consideration to hear Council input relating to acquisition of the property located at 1 Locust Street and authorization to solicit an appraisal. 8. Consideration ofa request by Harold Jesh ofHRA's interest to hear a second presentation for TIP assistance for a market rate housing project. 9. Consideration of an update relating to amending the Private Redevelopment Contract between J. A. C. Development, LLC and the HRA and consideration of action if necessary. 10. Consideration to authorize payment of monthly HRA bills. 11. Consideration of the Executive Director's Report. . . . 12. Consideration of Committee reports: a) City Council- Brian Stumpf b) Community Center - Bob Murray c) MCP - Steve Andrews 13. Other Business. 14. Adjournment. . . . HRA Minutes 8-11-99 MINUTES MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY Wednesday, August 11, 1999 - 7:00 p.m. City Hall Members Present: Chair Bob Murray, Steve Andrews, Dan Frie and Council Liaison Brian Stumpf. Absent: Brad Barger and Darrin Lahr Staff Present: Executive Director Ollie Koropchak and Recorder 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 July 28. ] 999 HRA minutes. A MOTION WAS MADE BY STEVE ANDREWS AND SECONDED BY DAN FRlE TO APPROVE THE MINUTES, AS WRITTEN, OF THE HRA MEETING ON JULY 28, 1999. Motion carried unanimously. 3. Consideration of adding agenda items. Ollic Koropchak asked to discuss the property at 1 Locust Street. This was placed under Other Business. 4. Consent Agenda: There were no items on the consent agenda. 5. Consideration of items removed from the consent agenda for discussion. N/A. 6. Consideration to review the Business Subsidy Criteria Example for development of Monticello criteria and settinQ a public hearinQ date. Ollie Koropchak presented drafts of the Business Subsidy Criteria to the members for their review. According to the July 12 memo from Mark Ruff, a business subsidy cannot . . . HRA Minutes 8-11-99 be granted until a grantor has adopted criteria for awarding a subsidy. A public hearing must be held prior to adoption of the criteria. This new requirement became etfective August 1, 1999. This criteria does not pertain to business subsidies of less than $25,000. These public hearings are held by the HRA, EDA and City Council. Ollie also noted that the lIRA can not lend money to businesses until this is adopted. The members thought this criteria would be a nice tool to provide to manufacturers who are seeking assistance from the HRA. The subsidy agreement only requires a little modification to our existing Private Redevelopment Contracts and Attorney Bubul will cover those items. However, the Council will need to approve the Redevelopment Agreement which means assistance levels offered to developers must be in agreement between developer, HRA, and Council prior to preparation of documents or to a commitment of Monticello as their site location. After this criteria is adopted, a public hearing would be held for any business subsidy requesting assistance in excess of $1 00,000. The guarantor, being the one loaning the money, would hold the public hearing. Attorney Steve Bubul reviewed the business subsidy criteria and pointed out the importance of the HRA members understanding of the information listed in items 5C and 5D regarding minimum wages. It was noted that item 5C applies to green acres. This item states that at least 90% of the jobs created must pay a wage of a least 160% of the federal minimum wage requirement for individuals over the age of20, or $8.24 per hour today. The process of these agreements was explained by Ollie Koropchak. The lIRA would first review the applications and then send them to the City Council. Ifthere is no opposition by the City Council, it proceeds. Ollie Koropchak will make the appropriate changes to the draft as directed by the HRA members and this item will be placed on the next agenda which will call for the public hearing to be held September 8, 1999. A MOTION WAS MADE BY DAN FRIE AND SECONDED BY STEVE ANDREWS TO CALL FOR A PUBLIC HEARING DATE OF SEPTEMBER 8, 1999, FOR EST ABLlSHMENT OF THE BRA BUSINESS SUBSIDY CRITERIA. Motion carried unanimously. 7. Consideration to authorize pavment of monthlv BRA bills. A MOTION WAS MADE BY STEVE ANDREWS AND SECONDED BY DAN FRIE TO AUTHORIZE PAYMENT OF THE MONTHL Y HRA BILLS. Motion carried. 2 . . . HRA Minutes 8-11-99 8. Consideration of Executive Director's Report. Ollie Koropchak provided the report on TIF Authority and Municipal Reports and annual disclosure statement providing a copy of the Council agenda item which suhmits the Authority Report to the Council and informs them of completion and submission of reports on a timely fashion. A copy of the entire report was available to the HRA members. Also provided were copies of the reimbursement checks for the pay-as-you-go TIF district. 'T'lF districts No. 1-15 (Custom Canopy) and No. 1-21 (T.J. Martin, Inc.) did not collect taxes. A letter to T.J. Martin relating to the delinquent taxes and deficiency per the Contract was reviewed by Attorney Bubul prior to mailing. There has been no response as of this time. This was up-front assistance in the amount of $37,900. A letter was also addressed to T.J. Martin, Inc. for non-payment of the EDA loan payback for the past three months. No letter was issued to Custom Canopy as this is a pay-as-you-go assistance which is paid annually in December per the Contract. No tax increment, no reimbursement. Regarding Allied Companies, Ollie Koropchak provided the new TIF revenue runs after talking with the County Assessor relating to the estimated market value beginning payable 2001 which will be the value in the Assessment Agreement. With the Available Tax Increment at 80%, the loan at 7% is estimated to be paid back in the year 2005 which is prior to the termination date. Also attached was the breakdown of number of jobs and wage ranges. Ollie stated she has received copies of Lieu Waivers for the site improvements; however, she has not had time to review them. Attorney Bubul prepared amendments to the Private Redevelopment Contract for execution by the HRA. The City Council approved the loan to the HRA on August 9th. Regarding the Grassl 7-foot walkway, Bill Grassl contacted Ollie and stated that he did not know ifhe was going to be a willing buyer, as he's not so sure it will be a benefit to him to have this walkway. The item was removed from the Council agenda of August 9th. Ollie Koropchak provided a copy of the letter mailed to Twin City Die Casting Company and informed the members that site selection will be the week of August 16. Monticello, Big Lake and Buffalo are in the running. It appears that the most desired spot available in Monticello is illl easterly 6 acre site on the south side of Chelsea Road. Ollie also provided a copy to the City Council so both government entities are aware of the financial assistance. 3 . . . HRA Minutes 8-11-99 Ollie stated she contacted a company who was looking f()r 20 acres of freeway exposure property for a 230,000 sq. ft. building and informed them the property lying north of Chelsea Road is not on the market. Wright County Commissioners approved the reconveyance of Outlot A, Country Club Manor to the State this week with the State expected to reconvey the parcel to the HRA in the near future. This is in process. Ollie Koropchak also advised the members that she received a copy of a Housing Study from the City of Brooklyn Park. She has also received a Senior Housing Study completed in January 1992 by Maxfield Research, a Multifamily Housing Study completed in January 1994 by Maxfield Research, and Residential Development Market Overview completed in April 1997 by Conhaim Associates. Brooklyn Park's study was available for the members to review. The HRA budget for 2000 was submitted to City Administrator Rick Wolfsteller, however, no meetings between staff and council have been held at this time. This will be included when the City Council hears the budget requests. Ollie stated she has received $100 of the $550 August rent from Tammy and expects to see the remaining balance within days. At this time we have not received this money. 9. Consideration of Committee reports: a) Brian Stumpf provided the City Council report stating the Council approved the loan for Midwest Graphics. b) Bob Murray provided the commtmity center report stating they had met last week and everything is still on track with a few minor details. A draft of the Policy Manual was also provided to the small group and looks in order. c) Steve Andrews provided the MCP report noting they hired a new executive director who will be starting the end of September. d) Bob Murray and Dan Frie provided the North Anchor report noting there was a public information meeting held on August 3'd with Darrin Lahr giving the presentation. Comments from this meeting will be brought to the City Council on August 23'd. A request from the property owners was to advise them when this will be put on the Council agenda. The also recommend the City Council not go out for proposals at this time. 4 . . . 11. lIRA Minutes 8-11-99 10. Other Business. Ollie Koropchak stated she received a call from the owner of the property at I Locust Street stating her desire to possibly sell this rental property. This property is located in the "green area" of the North Anchor map which is the 25 year, long term area. She was told that the City was looking at purchasing property in this area. Ollie also noted that people horn the information meeting were concerned with this corner house. Ollie wanted to see if the HRA and/or City had any interest in purchasing this property. This particular property probably does not fit with the North Anchor plan at this time, but it does fit the blight issue. HRA does not want to face relocation costs or jump into anything too quickly. The thought by the HRA is to put this item on the next agenda. Ollic stated she will do an information item to the City Council as well to get their input. Ollie will also let the property owner know that the HRA will formally address this at its September 8 meeting. Ollie reported, via Brad Barger, to consider amending their by-laws to go back to meeting on the first Wednesday of the month starting in October. This will be on the September agenda. Adjournment. DAN FRIE MOVED AND STEVE ANDREWS SECONDED A MOTION TO ADJOURN THE MEETING AT 8:20 p.m. Motion carried. Chair, Bob Murray Recording Secretary, Lori Kraemer 5 . . . lIRA Agenda - 9/8/99 4. Consent Agenda. 4A. Consideration to approve amending the Amended Bvlaws of the Housing and Redevelopment Authority in and for the City of Monticello. Minnesota. A. Reference and Backllround: At the August meeting, commissioners requested the consideration to amend the lIRA Bylaws be placed on the September agenda. The commissioners to discuss and approve amending ARTICLE VI :MEETINGS, Section 1., Annual Meeting. and Section 2., Regular Meeting. for consideration to amend the annual and regular meeting dates from the second Wednesday of April and second Wednesday of each month to the first Wednesday of April and first Wednesday of each month, respectively. Consideration to revert back to the first Wednesday of each month is to accommodate the schedules of the majority of the commissioners. In August 1998, the Bylaws were amended to accommodate the Mayor's schedule to attend the lIRA meetings. As the commissioners in attendance at the August lIRA meeting were not adverse to the change, this item appears on the consent agenda. Upon approval, the next lIRA meeting will be held October 6, 1999. B. Alternative Action: 1. A motion to approve amending the Amended Bylaws of the HRA, ARTICLE VI MEETINGS, Section 1., Annual Meeting. and Section 2., Regular Meeting. to read: the first Wednesday of April and the first Wednesday of each month, respectively. 2. A motion to deny approval amending the Amended Bylaws of the lIRA. 3. A motion to table any action. C. Recommendation: Recommendation Alternative No.1. D. SUDDortinll Data: Excerpt of the existing Amended lIRA Bylaws. I . .~ -. The Executive Director shall be appointed by the Board of Commissioners. Any person appointed to fill the office of Executive Director, or any vacancy therein, shall have such term as the Board of Commissioners fixes, but no Commissioner of the Board of Commissioners shall be eligible to this office. When the office of Executive Director becomes vacant, the Board of Commissioners shall appoint a successor, as aforesaid. The compensation of the Executive Director shall be approved by the Board of Commissioners. ARTICLE V ADDITIONAL PERSONNEL The Board of Commissioners may from time to time employ such personnel as it deems necessary to exercise its power, duties, and functions as prescribed by the Municipal Housing and Redevelopment Law of Minnesota applicable thereto. The selection and compensation of such personnel (including the Executive Director) shall be determined by the Board of Commissioners subject to the laws of the State of Minnesota. ARTICLE VI MEETINGS Section I. Annual Meetin~. The annual meeting of the Board of Commissioners shall be held on the second Wednesday of April at 7 p.m. at the regular meeting place of the Board of Commissioners; provided, however, that the date/time of the annual meeting may be postponed to a subsequent date/time upon the vote of a majority of Commissioners in office at any time taken at any regular or special meeting. 2Y Section 2. Re~ular Meetin~s. Monthly meetings shall be held without notice at the regular meeting place of the Board of Commissioners on the second Wednesday of each month at 7 p.m. unless the same shall be a legal holiday, in which event said meeting shall be held on the next succeeding secular day. In the event the date/time/meetings place of a particular meeting must be changed, the Chair may make such change deemed necessary by notifying all Commissioners by delivering (by staff) a notice to their home address at any time prior to the meeting or mailing a notice to the business or home address at least three (3) working days prior to the date of such regular meeting. Section 3. Special Meetings. Special meetings of the Board of Commissioners may be called by the Chair or two members of the Board of Commissioners for the purpose of transacting any business designated in the call. The call (including location of meeting) for a special meeting may be delivered at any time prior to the time of the proposed meeting to each member of the Board of Commissioners or may be mailed to the business or home address of each member of the Board of Commissioners at least three (3) working days prior to the date of such special meeting. At such special meeting, no business shall be considered other than as designated in the call; but if all of the members of the Authority are present at a KAREN\OFFICE\OLLlE\BYLAW5.HRA: 8/24/98 Page 4 4A . . . special meeting, any and all business may be transacted at such special meeting. Notice of any special meeting shall be given in accordance with Minnesota Statutes, Section 471.705, subd. lc, or any successor statute regarding notice of meetings of public bodies. ARTICLE VII QUORUM The powers of the Authority shall be vested in the Commissioners thereof in office from time to time. Three Commissioners constitute a quorum (except as noted below) for the purpose of conducting its business and exercising its powers and for all other purposes, but a smaller number may adjourn from time to time until a quorum is obtained. When a quorum is in attendance, action may be taken by the Board of Commissioners upon a vote of a majority of the Commissioners present (except as noted below). Exception: In regard to action on the annual Authority operating budget, or revisions thereto, there must be at least four Commissioners present, and the majority of those present must vote in favor of such for the matter to be approved. ARTICLE VIII ORDER OF BUSINESS Section 1. Order of Business. At the regular meetings of the Board of Commissioners, the following shall be the Order of Business: 1. Roll call 2. Reading and approval of minutes of the previous meeting 3. Items not contained in the agenda 4. New business 5. Bills and communications 6. Project update by Executive Director 7. Other Business 8. Adjoununent All resolutions shall be in writing and shall be copied in the journal of the proceedings of the Board of Commissioners. ARTICLE IX MANNER OF VOTING The voting on all questions coming before the Board of Commissioners shall be by roll call, and yeas and nays shall shall be entered upon the minutes of such meeting. The Chair and all members of the Board of Commissioners at every meeting of said Board of Commissioners shall be entitled to a vote. In the event that any Commissioners shall have a personal interest of any KAREN\OFF1Ce\OLLlE\BYLAW5.HRA: 8/24/98 Page 5 46 . . . HRA Agenda - 9/8/99 6. Public Hearinll and consideration to adopt the Business Subsidy Criteria for the Housing and Redevelopment Authoritv in and for the City of Monticello. Minnesota. A. Reference and background: PUBLIC HEARING The public hearing should be opened to allow comments or questions from the public. The public hearing notice appeared in the Monticello Times on August 26 and September 2, 1999, meeting the statute requirements. After comments and questions from the public, the public hearing should be closed. ADOPTION OF THE BUSINESS SUBSIDY CRITERIA The attached criteria is a revision of the draft copy reviewed by commissioners at the August meeting. The revised copy for adoption includes the changes made by the commissioners and/or consultants. Unless further revisions are needed, the HRA can consider adopting the criteria. B. Alternative Action. 1. A motion to adopt the Business Subsidy Criteria for the Housing and Redevelopment Authority in and for the City of Monticello, Minnesota. 2. A motion to deny adoption of the Business Subsidy Criteria for the HRA. 3. A motion to table any action. C. Recommendation. Assuming no adverse comments from the public, recommendation is Alternative No. 1. D. 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'a! m~~ g-g S~ II.. CD'" oQ.mE~ ~ O.s:::,..: s;~8~.l!i iiE w .g 1l ~'~ - III I:: 1: ~ ~~j ~~l~~ni 2:!& ~~~-1 i .~8 Cj'O:j&'J untiiJ II '3.~~ ~~~ ~!l1E1 Z ~3i! ~ ~t.!;;c! ~ 11 a:~ ~z~-; s ,- ~ ~'.~ .:'~ "' $0 :H ..~ a :; : ;t )J.: d' . _ fl- . '.d' :"~ '. , i).'ll i; 11 bA MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO, MINNESOTA Business Subsidy Criteria Public Hearing and Adoption the _ day of , 1999. 1. PURPOSE 1:01 The purpose of this document is to establish the Housing and Redevelopment Authority's criteria for granting of business subsidies, as defined in Minnesota Statutes 116J.993, Subdivision 3, for private development. This criteria shall be used as a guide in processing and reviewing applications requesting business subsidies. . 1: 02 The criteria set forth in this document are guidelines only. The Housing and Redevelopment Authority reserves the right in its discretion to approve business subsides that vary from the criteria stated herein if the Housing and Redevelopment Authority determines that the subsidy nevertheless serves a public purpose. 1 : 03 The Housing and Redevelopment Authority may amend the business subsidy criteria at any time. Amendments to these criteria are subject to public hearing requirements pursuant to Minnesota Statutes, Sections 1161.993 through 1161.994. 2. STATUTORY LIMITATIONS 2:01 In accordance with the Business Subsidy Criteria, Business Subsidy requests must comply with applicable State Statutes. The Housing and Redevelopment Authority ability to grant business subsidies is governed by the limitations established in Minnesota Statutes 1161. 993 through 1161. 994. 3. PUBLIC POLICY REQUIREMENT . 3:01 All business subsidies must meet a public purpose other than increasing the tax base. Job retention may only be used as a public purpose in cases where job loss is imminent and demonstrable. 1 Monticcllo 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 08 . 4. 4:01 4:02 4:03 lIRA Business Subsidy Criteria BUSINESS SUBSIDY APPROVAL CRITERIA All new projects approved by the Housing and Redevelopment Authority should meet the following minimum approval criteria. However, it should not be presumed that a project meeting these criteria will automatically be approved. Meeting these criteria creates no contractual rights on the part of any potential developer or the Housing and Redevelopment Authority. The project must be in accord with the Comprehensive Plan and Zoning Ordinances, or required changes to the plan and ordinances must be under active consideration by the City at; the time of approval. Business subsidies will not be provided to projects that have the financial feasibility to proceed without the benefit ofthe subsidy. In effect, business subsidies will not be provided solely to broaden a developer's profit margins on a project. 4: 04 Prior to approval of a business subsidies financing plan and when deemed appropriate by the Housing and Redevelopment Authority, the developer shall provide any required market and financial feasibility studies, appraisals, soil boring, information provided to private lenders for the project, and other information or data as requested. . 4:05 A recipient of a business subsidy must make a commitment to continue operations at the site where the subsidy is used for at least five years after the benefit date. 4:06 Recipients of any business subsidy will be required to meet wage and job goals determined by the Housing and Redevelopment Authority on a case-by-case basis, giving consideration to the nature of the development, the purpose of the subsidy, local economic conditions, and situational circumstances. 5. TAX INCREMENT PROJECT EVALUATION CRITERIA 5:01 The Housing and Redevelopment Authority will utilize Tax Increment Financing to support the community's long-term economic, redevelopment, and housing goals. 5:02 Each Tax Increment Financing subsidy will be analyzed and evaluated by the Housing and Redevelopment Authority. Each project shall be measured against the general criteria in Sections I through 6 and the specific criteria in this Section 5 applicable to tax increment financing business subsidies. . 5:03 Following are the evaluation criteria that will be used by the Housing and Redevelopment 2 ~ . HRA Business Subsidy Criteria Authority. A. All business subsidy requests shall meet the "but for" test. The "but for" test means that the project would not develop solely on private investment in the reasonable future. The developer shall provide findings for the "but for" test. B. Business subsidy requests should create the highest feasible number of jobs on site from date of occupancy where deemed appropriate. C. F or manufacturing and warehousing business subsidy requests, at least 90% of the jobs created must pay a wage of at least 160% of the federal minimum wage requirement for individuals over the age of 20. Annual written reports are required until termination date. Failure to meet the job and wage level goals require partial or full repayment of the assistance with interest. D . For other business subsidy requests, jobs created must meet as a minimum the federal minimum wage requirement. Annual written reports are required until termination date. Failure to meet the job and wage level goals require partial or full repayment of the assistance with interest. . E. All business subsidy requests should create the highest possible ratio of property taxes paid before and after redevelopment. F. Business subsidy requests should facilitate redevelopment or elimination of "substandard" or "blighted" areas where deemed appropriate. G. Business subsidy requests should facilitate the "clean-up" of environmentally unsound property where deemed appropriate. H Business subsidy requests should increase moderate priced housing options for area residents where deemed appropriate. I. All business subsidy requests should be deemed to promote additional desired "spin-off" development. 1. All business subsidy requests should demonstrate "community involvement" including demonstrated degrees ofthe various factors: a) Local residency of the company's owners and employees, or b) Local residency ofthe contractors involved in the project, or c) Membership in local business organizations, or d) Other similar factors. . 3 ~D . . . 6. HRA Business Subsidy Criteria PROCEDURES * Meet with appropriate Staff to discuss the scope of the project, public participation being required, and other information as may be necessary. * The request shall be reviewed by Staff on a preliminary basis as to the feasibility of the project. * The project concept shall be placed on the Housing and Redevelopment Authority agenda for concept review. The applicant will make a presentation of the project. Staff will present its findings. * If the Housing and Redevelopment Authority's concept review is positive, Staff will provide the City Council with an informational concept review. * The applicant will execute and submit the Preliminary Development Agreement accompanied by a non-refundable fee of $5,000. * Building and site plans submitted to the Chief Building Official. * JfPlanning and Zoning Commission action is required, it will be necessary for the applicant, at this time, to make application to the Commission. * Staffwill authorize the following steps: - Preparation for establishment of the Tax Increment Finance District and the Tax Increment Financing Plan if required. - Preparation of the Private Redevelopment Contract (Subsidy Agreement) based upon agreed terms. * When action is required for the Tax Increment Finance Plan, Private Redevelopment Contract, or Zoning/Ordinance~ the Housing and Redevelopment Authority, Commission, and City Council shall take appropriate action such as public hearings and consideration of approvals. * Building permit issued after the Tax Increment Finance District and Plan is approved by City Council, the Private Redevelopment Contract is executed by the developer and the Housing and Redevelopment Authority, and the Building Permit Fees are paid. 4 &,E . . . HRA Business Subsidy Criteria Elig;ble Tax Increment Finance expenditures: Land acquisition, site improvements, public improvements, and demolition and relocation costs. Tax Increment Finance time: Generally six to eight weeks from time of authorization to begin drafting plan and contract. Zoning/Ordinance time: Varies per project. busub.crit 5 'hF . . . HRA Agenda - 9/8/99 7. Consideration to hear Council input relating to acquisition of the property located at 1 Locust Street and authorization to solicit an appraisal. A. Reference and background: At the Council meeting of August 23, the attached informational item relating to the owner's interest to sell the property located at 1 Locust Street was submitted to the members. As an agenda item, the Council received the comments and questions from the North Anchor public informational meeting and tabled for six months any action to solicit a request for proposal for a mixed housing and commercial development in the designated purple area. They appeared to agree and recognized the area encompasses the following: substandard parcels, safety concerns, and an unattractive image. With the initial goal of the Council to not increase the levy for Budget Year 2000, no consideration was given to the North Anchor's request for a $200,000 annual appropriation. The Council presently is looking at a budget proposal which includes the capital improvement program items and not capital outlay requests. The second meeting of the Council relating to the Year 2000 Budget is scheduled for 5:30 p.m., Tuesday, September 7. Perhaps, more direction from Council at that time. Tim and Nancy Holm are the current owners for the property located at 1 Locust Street and plan to attend the HRA meeting. In my conversation with Nancy today, the tenant was served a notice to move by the owners and are expected to move out October 11-12. The owner plans to put the property on the market; however, they indicated they have a new interested party as a potential tenant. DATA: Legal: Northerly 99 Feet of Lots 6 and 7, Block 55. EMV for taxes payable 1999 - $61,400 land and building. Assessments of$332. EMV for taxes payable 1995 - $57,200 land and building ($39,200 bldg, $18,000 land) Certificate of Real Estate Value - April 27, 1992 - $40,500. 1 l/2 story house, fireplace, 1,306 sq ft. Garage 360 sq ft. Site 13,068 sq ft. It has been the past practice of the HRA to authorize an appraisal, prior to negotiating a purchase price. If the HRA is interested in proceeding, the recommendation is authorize an appraisal and suggest an appraiser. 1 . HRA Agenda - 9/8/99 B. Alternative Action: 1. A motion to authorize an appraisal for the property located at 1 Locust Street. 2. A motion of no interest to proceed with an appraisal for the property located at 1 Locust Street. 3. A motion to table any action. c. Recommendation: If the HRA is serious about acquiring the property perhaps it is best to obtain an appraisal. An update of the Council Budget Year 2000 meeting of September 7 will be provided at the HRA meeting. D. Supporting Data: Map and copy of informational item to Council. . . 2 0 0 I- '" '" '" ... . 0 ~ :; eJ ~J 0 0 '" ~ n 0 ~ ~ ... ... ...... '.. ----.---_.... rf i I ~ . = J I ~ c-l .- ..... = = ~ -= ~ .- U . , . , . , . , . , . , . , . , .,.~ ~ ." ,.' ~ ,. ~ ,. .". ,. ~ ,." ~ ~ " ~ w, .... ~ '''. . . . -~~-~ INFORMA TIONAL ITEM By Ollie Koropcllak, Ecollomic Developmellt Director I received a telephone call from the owner of the property located at 1 Locust Street. Due to destruction of property by the tenant, complains, and Sheriff's calls, the owner has decided to place this property on the market. On August 11, the owner gave the tenant a 3D-day notice to move. Via the Sheriff's department, the owner became aware that perhaps the City was interested in purchasing the property. The HRA will formally place this on their agenda for September 8. Although the house is identified in the 25-year plan (green), the HRA is aware this was one home noted as a concern by the residents at the public informational meeting. Council members, take a drive by. HRA looking for direction. Need money. HRA's policy, first step to go out for an appraisal. ,(3J .J I ~ I ~ ....... ". , ~ ~ ~ ~ l~ ;f tl'~':' .~ "", " , '- -., '. ...... -..... " '"'' " -.-- ............... ~ ~ :1 -.../ 1'-'" ~~,~. :'I) '-'-. un . . . HRA Agenda - 9/8/99 8. Consideration ofa request bv Harold Jesh ofHRA's interest to hear a second presentation for TIP assistance for a market rate housing proiect. A. Reference and background: Mr. Jesh appeared before the HRA on June 9, 1999, and asked the HRA oftheir interest to provide TlF assistance for an upper-scale 18 to 24 unit market rate rental complex. He requested 15 years ofthe 90% available tax increment with a 20/50 criteria. Mr. Jesh stated the project would not proceed without TIP assistance but submitted no data to back his statement. Additionally, he had not completed a comparison between his projected rents and the existing market-rate rents. The HRA made a motion 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. The Council addressed the request of the HRA for direction and directed the HRA conduct a Housing Study to better understand the housing needs of the City of Monticello for TIF use and City planning. Copies of three Housing Studies from Brooklyn Center are on-hand with the $20,000 request for funding the housing study still pending in the City Budget 2000 process. Also, the Executive Director was to check with Big Lake and Buffalo for sample of housing studies. Mr. Jesh has called several times and still appears interested in a housing project in Monticello. He stated he has run numbers indicating a cashflow deficit satisfying the "but for" test. Although informed of the direction to conduct a housing study and the open- door policy to appear before the HRA, Mr. Jesh requested to seek the HRA's interest to hear a second presentation at the October meeting. B. Alternative Action. 1. A motion of interest to hear a second presentation by Mr. Jesh relative to TIF assistance for upper scale rental housing. 2. A motion of no interest to hear presentations requesting TIP assistance for housing projects until completion of the housing study. 3. A motion to table any action. C. Recommendation. It appears Mr. Jesh has additional information, therefore, recommendation is alternative no. 1. Attached is the HRA agenda supplement from July, please review. 1 . HRA Agenda - 9/8/99 D. Supportin~ Data: HRA agenda supplement of July 14, 1999. . . 2 . . . HRA Agenda - 7/14/99 6. Consideration of City Council recommendation to authorize ore,paration and solicitation of a request for oroposal for an over-all City Housing Study. A. Reference and BacklUound: 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 ofTIF 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 lIRA 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 of the 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 of Mr. 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 of the 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 lIRA 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 oftax 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 HRA be involved in review or preparation of the RFP to ensure the HRA obtains the information they're seeking. 1 ~ CL. . . . HRA Agenda - 9/8/99 9. Consideration of an update relating to amending the Private Redevelopment Contract between lAC. Development. LLC and the HRA and consideration of action if necessary. A Reference and background. A copy of the First Amendment to the Contract for Private Redevelopment between lAC. Development LLC and the HRA was submitted to lAC. on August 12 along with the Assessment Agreement. Signatures from the HRA, City, and County Assessor have been secured. Upon lAC. receiving a copy of the amendment, they had two concerns: Tax liability for received of up-front monies and liability relative to a default of the wage and job goals. It appears lAC. is willing to assign the First Amendment to the Contract from lAC. to Midwest Graphics and Response Systems, Inc. and to assign the right to Midwest Graphics to receive the $181,000, if lAC. has no liability upon a default by Midwest Graphics. Subject to no liability to lAC. will additional document will be prepared. First question to be answered per Attorney Greensweig is an HRA policy question: Is the HRA willing to release lAC. of their responsibility to meet the job and wage covenants? As you recall, if job and wage covenants are not met, the developer must repay a part or all of the assistance with interest. Does the HRA feel Midwest Graphics has the financial capability to repay if in default? lAC., as owner of the property and by the statutes, is responsible for the property taxes. A new assignment will include an Indemnification Clause stating Midwest Graphics will reimburse J.AC. for any costs associated by a property tax default. Evidence of site improvement costs paid by lA C. has been satisfied. Yet to be received is a copy of the executed Assignment from Allied Companies to lAC. and from Steve Krenz evidence adequately satisfactory to the HRA verifYing Midwest Graphics ability to finance the approximate $400,000 relocation move. Update at the HRA meeting. B. Alternative Action: 1. A motion to approve releasing lA C. Development LLC from the responsibility of the Job and Wage Covenants. 2. A motion to deny approval releasing lAC. Development LLC from the responsibility of the Job and Wage Covenants. 3. A motion to table any action. 1 . HRA Agenda - 9/8/99 c. Recommendation: Recommendation is Alternative No. 1 subject to Midwest Graphics providing evidence to finance the relocation move. In reality, staff does not understand how a business can provide evidence of financial strength to refund the tax increment assistance plus interest if declared in default. If one requests a Letter of Credit or Money in Escrow, the business would not need the dollars. D. Supporting Data: Copy of the First Amendment. . . 2 . . . nRSTAMENDMENTTOCONTRACTFORPIDVATEREDEVELOPMENT THIS AGREEMENT is made this 28th day of July 1999, by and between THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR CITY OF MONTICELLO, MINNESOTA, a public body corporate and politic under the laws of Minnesota (the "Authority"), and J.A.c. DEVELOPMENT, LLC, a Minnesota limited liability corporation (the "Developer"). WITNESSETH: WHEREAS, the Authority has undertaken a program to promote economic development and job opportunities and to promote the development of land which is underutilized within the City of Monticello, Minnesota (the "City"), and in this connection created Redevelopment Project No. 1 (the "Project") in an area (the "Project Area") located in the City and Tax Increment Financing District No. 1-23 (the "TIP District") within the Project Area, all pursuant to Minnesota Statutes, Sections 469.001 to 469.047 (the "Act") and Minnesota Statutes, Sections 469.174 to 469.179; and WHEREAS, the Authority has entered into that certain Contract for Private Redevelopment with Allied Companies, LLC, dated as of June 3, 1998 (the "Contract") regarding the parties respective responsibilities in connection development of the property in the TIP District described in Exhibit A hereto (the "Development Property"); and WHEREAS, the Contract provides for reimbursement of Land Acquisition Costs and Site Improvement Costs related to the Development Property on a "pay as you go" basis, as described in Section 3.5 of the Contract; and WHEREAS, Allied Companies, LLC assigned all its rights and obligations under the Contract to J.A.c. Development, LLC ("Developer") by that certain Assignment of Contract for Private Redevelopment dated as of , 1998; and CIA . . . WHEREAS, the Developer has completed construction of the Minimum hnprovements in accordance with the Contract, for which a certificate of completion was issued dated as of February 12,1999;and WHEREAS, the Developer has proposed to increase the total employment on the Development Property, through consolidation of manufacturing operations at this site by the Developer's tenant, Midwest Graphics, Inc.; and WHEREAS, in light of increased costs related to such consolidation, and in consideration of the increased employment in the City, the Authority has determined to accelerate reimbursement of the Land Acquisition Costs and Site Improvement Costs, all subject to the terms and conditions of this Agreement. NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: 1. In Section 1.1 of the Contract, the definition of "Termination Date" is amended to read as follows: 'Termination Date" means the earlier of August 1,2005, or the date on which the Authority has received the Principal Amount together with interest thereon, in accordance with Section 3.5 of the Contract. 2. Section 3.5 of the Contract is amended to read as follows: Section 3.5. Financing of Land Acquisition and Site Improvement Costs. In order to make development of the Minimum Improvements economically feasible, the Authority will reimburse the Developer for the Land Acquisition Costs and Site hnprovement Costs in accordance with the terms of this Section: (a) The Authority will disburse to the Developer, from any funds available to the Authority, up to $58,000 as reimbursement for Land Acquisition Costs, and up to $123,000 as reimbursement for Site Improvement Costs. Disbursement is conditioned on satisfaction of the following conditions: (i) receipt and approval by the Authority's executive director of (i) in the case of Land Acquisition Costs, a copy of the purchase agreement with an unrelated third party and a copy of the certificate of value from closing on that acquisition, and (ii) in the case of Site Improvement Costs, documentation in the form of contractor certifications, invoices, lien waivers, and such other documentation as the executive director requires, showing amount of Site Improvement Costs for which payment is sought and that the work for which payment is requested has been completed in accordance with approved plans therefor; (ii) receipt and approval by the Authority's executive director of evidence that Developer has financing (whether equity, short-term or permanent mortgage financing~ or SJ8-166915 MN 190-80 2 q~ . . . other forms) sufficient to undertake expansion of Developer's operations on the Development Property as needed to accommodate the new employment described in Section 3.7 of the Contract; and (iii) there is no uncured Event of Default. (b) The total principal amount of Land Acquisition Cost and Site Improvement Costs ("Principal Amount") disbursed to the Developer shall be treated as a loan, repayable to the Authority in accordance with the following tenus and conditions: (i) The Principal Amount shall be repaid, together with interest thereon on at the rate of 7.0% per annum from the date of disbursement ("Disbursement Date"), in semi- annual installments payable on each August 1 and February 1, commencing August 1, 2000 and continuing through August 1,2005 (each a "Payment Date"), which payments shall be in the amounts set forth in Exhibit B hereto. (ii) Payments shall be applied first to accrued interest and then to unpaid principal. Interest accruing from the Disbursement Date to the first payment date will be compounded semiannually on each February 1 and August 1 and added to the Principal Amount. (iii) The parties agree and understand that the amount of Available Tax Increment received by the Authority as of any Payment Date shall be credited as a payment by and on behalf of the Developer under this Section. The term "Available Tax Increment" means 80% of the Tax Increment with respect to the Development Property as calculated by the County and paid to the Authority during the six months preceding any Payment Date. (iv) If on any Payment Date the amount of Available Tax Increment is insufficient to pay the amount due on that Payment Date, the Developer shall pay to the Authority, within 10 days of written demand by the Authority, an amount equal to the difference between the amount payable under Exhibit A and the Available Tax Increment actually received by the Authority as of that Payment Date. The Developer hereby acknowledges that the amount of Available Tax Increment is subject to change in State law and calculation by the State and County and that any such variation shall not impair the Authority's ~ghts or the Developer's obligations hereunder. (v) The Authority may, at its option, treat any Available Tax Increment received in excess of the amount due on any Payment Date as a prepayment of the Principal Amount and interest thereon, provided that such prepayment shall not alter the timing or amounts otherwise due as set forth in Exhibit A. The Authority will notify the Developer in writing promptly after electing any such prepayment. 3. Section 3.7 of the Contract is amended to read as follows: Section 3.7. Job and Wage Covenants. (a) By February 12,2001 (which is two years after the date of the certificate of completion for the Minimum hnprovements), the Developer shall cause to be created on the Development Property at least 37 new full-time equivalent jobs in Minnesota, SJB.166915 MNl90-80 3 q~ . . . each such job to pay an hourly wage of at least $8.24, exclusive of benefits, or the rate specified in Section 3.7(c), whichever is higher. (b) By July 28, 2001 (which is two years after the date of this Agreement), the Developer shall cause to be created on the Development Property at least 40 new jobs, in addition to the jobs required under Section 3.7(a). The jobs created under this paragraph must pay the following hourly wages, exclusive of benefits: 2 jobs: 1 job: 5 jobs: 32 jobs: at least $lO/hour at least $ 12/hour at least $ 14/hour at least $ 16/hour or in all case, the rate specified in Section 3.7(c), whichever is higher. (c) In accordance with Section 469.176, subd. 7 of the TIF Act, at all times prior to the Termination Date, the Developer shall cause at least 90% of the jobs located on the Development Property (both before and after meeting the number of jobs required under this Section) to pay a rate equal to or greater than 160% of the federal minimum wage for individuals over the age of 20. (d) The Developer shall submit or cause to be submitted to the Authority a written report by March 1 of each year during the term of this Agreement describing employment and wages in sufficient detail to enable the Authority to determine compliance with this section. (e) If the Developer fails to comply with any of the terms of Section 3.7(a), (b) or (c), the Developer shall repay to the Authority any amounts disbursed to the Developer pursuant to this Agreement. Nothing in this Section 3.7(e) limits any other remedy available to the Authority under this Agreement or any other agreement between the Authority and the Developer. 4. A new Section 6.2 is added to read as follows: Section 6.2. Assessment Agreement. (a) Upon execution of this Agreement, the Developer shall, with the Authority, execute an Assessment Agreement pursuant to Minnesota Statutes, Section 469.177, subd. 8, specifying an assessor's minimum market value (the "Minimum Market Value") for the Development Property and the Minimum hnprovements constructed thereon. The amount of the Minimum Market Value shall be $1,825,000 as of January 2,2000 and each January 2 thereafter through the Termination Date. (b) The Assessment Agreement shall be substantially in the form attached hereto as Exhibit C. Nothing in the Assessment Agreement shall limit the discretion of the assessor to assign , a market value to the property in excess of the Minimum Market Value. The Assessment Agreement shall remain in force for the period specified in the Assessment Agreement. The Developer shall cause the Assessment Agreement to be consented to by Marquette Bank National Association, as holder of a Mortgage. S18-166915 MN 190-80 qJ) 4 . . . 5. In addition to any costs paid or payable by the Developer under Section 3.3 of the Contract, the Developer will pay on demand to the Authority all out-of-pocket costs incurred by the Authority and attributable to or incurred in connection with the negotiation and preparation of this First Amendment to the Contract and other documents and agreements in connection with this First Amendment, induding without limitation any documents related to a loan from the City to the Authority necessary to finance the assistance provided herein. 6. The Contract remains in full force and effect and is not modified except as expressly stated herein. NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: :~ LORI J. KRAEMER '1 ,. NOTARY PUBLIC. MINN~, ~'. f My Comm. Expire. Jan.:J~ 2>.". t '>+""".".. '.\ ST ATE OF MlNNESOT A ) ) SS. COUNTY OF WRIGHT ) HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MO ICELLO By: Its: c. '" 0.. ~ " By: Its: c:J~~~~ Executive Director The foregoing instrument was ackn~wledged before me this I ~-f) day of ~, 1999, by &~ mLu~ and OlIve Koropchak, the r.f)QJ},J and Executive Director of the Housing and Redevelopment Authority in and for the City of Monticello, Minnesota, on behalf of the Authority. S18-166915 MNI90-80 ~li1' ~ 5 9~ . . . EXHIBIT A Development Property Lot I, Block I, Monticello Commerce Center Third Addition, according to the recorded plat thereof, Wright County, Minnesota. SJB-16691S MNl90-80 qF . . . Interest 4,300.71 4,300.71 6,717.41 6,000.35 5,258.20 4,490.94 3,696.83 2,875.86 2,026.16 1,147.74 238.57 SJB.I66915 MNI90-80 EXIllBIT C Payment Schedule Princi al 0.00 0.00 20,487.39 21,204.45 21,921.64 22,688.90 23,456.12 24,277.09 25,097.80 25,976.22 6,816.39 Total Pa ent 4,300.71 4,300.71 27,204.80 27,204.80 27,179.84 27,179.84 27,152.95 27,152.95 27,123.96 27,123.96 7,054.96 q6- . . . EXIUBIT C ASSESSMENT AGREEMENT and ASSESSOR'S CERTIFICATION By and Between HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO and J.A.C. DEVELOPMENT, LLC This Document was drafted by: KENNEDY & GRA VEN, Chartered 470 Pillsbury Center Minneapolis, Minnesota 55402 SJB.16691S MN 1 90-80 t!1-/ . . . ASSESSMENT AGREE:MENT THIS AGREEMENT, made on or as of the _ day of , 1999, and between the HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO, a public body corporate and politic (the "Authority") and J.A.c. DEVELOPMENT, LLC, a Minnesota limited liability corporation (the "Developer"). WITNESSETH, that WHEREAS, the Authority and Allied Companies, LLC entered into a Contract for Private Development dated June 3, 1998 (the "Contract"), pursuant to which the Authority is to facilitate development of certain property in the City of Monticello hereinafter referred to as the "Property" and legally described in Exhibit A hereto; and WHEREAS, Allied Companies, LLC has assigned all it's rights and obligations under the Contract to the Developer; and WHEREAS, the Authority and the Developer have entered into a First Amendment to the Contract dated July 28,1999; and WHEREAS, pursuant to the Contract the Developer has constructed certain improvements upon the Development Property (the "Minimum Improvements"); and WHEREAS, the Authority and the Developer desire to establish a minimum market value for the Development Property and the improvements constructed thereon, pursuant to Minnesota Statutes, Section 469.177, Subdivision 8; and WHEREAS, the Authority and the Assessor for Wright County (the "Assessor") have reviewed the plans and specifications for the improvements and have inspected such improvements; NOW, THEREFORE, the parties to this Agreement, in consideration of the promises, covenants and agreements made by each to the other, do hereby agree as follows: 1. The minimum market value that shall be assessed for the Development Property described in Exhibit A, together with the Minimum Improvements thereon, for ad valorem tax purposes, shall be $1,825,000 as of January 2, 2000 and each January 2 thereafter through the term of this Agreement. 2. The minimum market value herein established shall be of no further force and effect and this Agreement shall terminate on the Termination Date as defined in Contract, as amended. The event referred to in Section 2 of this Agreement shall be evidenced by a certificate or affidavit executed by the Authority. 3. This Agreement shall be promptly recorded by the Authority. The Developer shall pay all costs of recording. SJB-166915 MNl90-80 C/r . . . 4. Neither the preambles nor provisions of this Agreement are intended to, nor shall they be construed as, modifying the terms of the Contract between the Authority and the Developer. 5. This Agreement shall inure to the benefit of and be binding upon the successors and assigns of the parties. 6. Each of the parties has authority to enter into this Agreement and to take all actions required of it, and has taken all actions necessary to authorize the execution and delivery of this Agreement. 7. In the event any provision of this Agreement shall be held invalid and unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof. 8. The parties hereto agree that they will, from time to time, execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, such supplements, amendments and modifications hereto, and such further instruments as may reasonably be required for correcting any inadequate, or incorrect, or amended description of the Development Property or the improvements thereon, or for carrying out the expressed intention of this Agreement, including, without limitation, any further instruments required to delete from the description of the Development Property such part or parts as may be included within a separate assessment agreement. 9. Except as provided in Section 8 of this Agreement, this Agreement may not be amended nor any of its terms modified except by a writing authorized and executed by all parties hereto. 10. This Agreement may be simultaneously executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. S18-166915 MN 190-80 qJ . . . 11. This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota. HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO, MINNESOTA By: Its: By: Its: Executive Director ST ATE OF MINNESOTA) ) SS. COUNTY OF WRIGHT ) The foregoing instrument was acknowledged before me this _ day of , 1999, by Olive Koropchak and , the and Executive Director of the Housing and Redevelopment Authority in and for the City of Monticello, Minnesota, on behalf of the Authority. Notary Public 518-166915 MNI90-80 qt{ . . . STATE OF MINNESOTA ) ) SS. COUNTY OF WRlGm ) l.A.C. DEVELOPMENT, LLC By: Its: The foregoing instrument was acknowledged before me this _ day of , 1999, by , the of l.A.C. Development, LLC a Minnesota limited liability company, on behalf of the limited liability company. 5J8-166915 MN 1 90-80 Notary Public qL . . . CONSENT AND SUBORDINATION The undersigned, as holder of that certain Mortgage, Security Agreement and Fixture Financing Statement given by the Developer dated and fIled in the office of the Wright County Recorder as Document No. (the "Mortgage") hereby consents to the forgoing Assessment Agreement between the Authority and the Developer, and agrees that the Mortgage is in all respects subject and subordinate to the terms of the Assessment Agreement. MARQUETIE BANK, NA TIONALASSOCIA nON By: Its: By: Its: STATE OF MINNESOTA ) ) SS. COUNTY OF ) acknowledged before me this _ day of and , the of Marquette Bank, National The foregoing instrument was , 1999 by and Association, on behalf of the bank. S18.166915 MNl90-80 Notary Public q/l{ . . . CERTIFlCATION BY COUNTY ASSESSOR The undersigned, having reviewed the plans and specifications for the improvements to be constructed and the market value assigned to the land upon which the improvements are to be constructed, hereby certifies as follows: The undersigned Assessor, being legally responsible for the assessment of the above described property, hereby certifies that the values assigned to the land and improvements are reasonable. STATE OF MJNNESOT A ) ) ss COUNTY OF WRIGIff ) County Assessor for the County of Wright The foregoing instrument was acknowledged before me this _ day of 1999 by , the County Assessor of the County of Wright. 518-166915 MNI90-80 Notary Public qlf . . . EXHIBIT A of ASSESSMENT AGREEMENT Legal Description of Property Lot I, Block I, Monticello Commerce Center Third Addition, according to the recorded plat thereof, Wright County, Minnesota sm.16691S MNl90-80 qf) . . . 10. Consideration to authorize payment of monthly HRA bills. Recommendation to authorize payment. HRA Agenda - 9/8/99 . LO V N en <("N O::...;:t~ ~~ ;:00::2: cO 0 ~n.Q) () :p c o ::2: . en (J) 0> ...... o ...... - U) ::J C'> ::J <( Lt) co C") U) .... *' II) U '0 > .5 U) N c:i Z - u 'C - en o LL. i= co N I o o ~ o ::E VJ ,~ c: C1l (j) (ij c .0 iii VJ oS! e a.. :'1'.:"I!'T,1"''<~~..':' 100 NIO cO' Nro ..... 100 NIO 6"': Cll .... .E Ol & (ij o c ,Q ~ o VJ ~ '0 C Cll ~ c ,2 'S .0 ';:: Ii) '5 iii OC E~ ,!Q C1l '0'0 ~~ c:J c"5l O..c C> VJoc c (j) ';:: ,Q I m lZ g>..c i3iE,g VJCll.o 005. a:: I-U ~a:: en en ~en COM t:::!: r-.. . "',' ~\"~"~':'~'~~'~~'- ..i:: C o ~ VJ E ?- m :J Cl S o I- f\. it \.L ~ ~ ~~ Q.i :J Cl C1l U C Cll (ij l:D E o I- rt'll~~"'""' "II'. _~~r..,,~,:: ":~';"~';~f"I.~;~',?!;., '! ':' '~',::!)~!,' ",.,:):T;:::~~':,'~~'/"?7'; iJE Jl"bl "0 0 ? ~ j ~~r~?r:Yt'!d$":~r:!~i$;~~S:,j:tJ',)~f7,,~;~;s~B_~~0," :-' I D.- CL . - 1.0 1.0 00 6' 6' a c Nl'- 01.0 1.0 1.0 a :::l COCO u:iN N N 1.0 0 N l'- 0<0 <0 <0 a E ......N N N ...... <( EI) EI) ~ ~ EI) o::r f!? 1.0 1.0 a co N l'- ~ M :::l dd CD 0 ...... ... I * Q) t.l '0 > .= L{) cr: v N 0) ~ I 0) <,....."N 0) ~Ji 0) :r ..... 0 Q.)OZ ..... .~ lD :2 - CJ) cOo :::l ~a..~ 0> :::l .. <( c 0 :2 (/) ~ ...J "~ C2 Q) (j) W lij Z c W 0 C) '00 (/) ~ e a.. .... 0 I 0 0 .... U :E . (/) E L. .E Cl c 1:: o a. ~ c o ~ (5 ..l:: - .~ (/) (/)1:: co 00. ,- Q) ~o:: G< .!!! (j) 00 0:: ~t) ::20:: 0> 0> 0> 0> -- -- 0><0 ..- N -- -- l'-l'- ..l:: - c ~~ l/)C Ell! I-ro Q)lD ~(/) 05 lij ";;;: o~ 1-0... ~ o >. ..::.:: C ro = I - l:: Q) E >. ro a.. 0> 0> co ~ l'- (/) 'E Q) E - (/) ~ '5' ro "0 C ro 11 c Q) E >. ro a. ~ I- iti ~ o Q) u C ro ro lD lij ~ , ~'_.'.".~."- '~'-',--"-""",,..,... lr-" "-"..... y,. .-,:::"<;t'/IL.'. .,~_"'~~:':::",.~:'~-r<"",":-:-:'~,~'<~.,.,,, ,_';~,_, f ,owKi ". ':" .~. ,....: .;",1... .....,. ,".+:," . ;:""";'7"~.;""'~':".,~,:.,r".<t.. ~ ~~~,~"7{.~,~:~,:.'.'-"~'~'~';r:::'~'~r," ID.-B . . . City of Monticello Ollie Koropchak City Hall P.O. Box 1147 Monticello, MN 55362-9245 Through July 31,1999 Kennedy & Graven, Chartered 200 South Sixth Street Suite 470 Minneapolis, MN 55402 (612) 337-9300 August 11, 1999 Statement No. 3812 ~~~ MN190-00046 Soils TIF MN190-00041 Redevelopment - General ""\".t:~ \ -\.<<;S MN190-00058 Economic Development TIF lake Tool (TJ Martin) '\ ~"- - \ -'J,.. \ "\ t;.~ . \. - ~ :, Expenses MN190-00072 Economic Development TIF 1998 34.75 300.70 41.70 83.40 1.90 Total Current Billing: 462.45 I declare, under penalty of law, that this account, claim or demand is just and correct and that no part of it has been paid .--:! TI:,~@IEDV~ n "" AUG 1 J 1999 IU 1,;;1 / D -c. . . . Kennedy & Graven, Chartered 200 South Sixth Street Suite 470 Minneapolis. MN 55402 (612) 337-9300 41-1225694 August 11, 1999 Invoice # 3812 City of Monticello Ollie Koropchak City Hall P.O. Box 1147 Monticello. MN 55362-9245 MN190-00041 Redevelopment - General Through July 31,1999 For All legal Services As Follows: 7/8/1999 SJB Phone conference with 0 Koropchek re various development proposals Total Services: For All Disbursements As Follows: Fax Postage Photocopies Hours 0.25 Total Disbursements: -\~~ 'V~" \-\~ MN190-00046 Soils TIF Through July 31,1999 For All legal Services As Follows: 7/8/1999 SJB Phone call with 0 Koropchak re amendment to contract 7/12/1999 SJB Review letter to R Murray; HRA background 7/19/1999 TlB Transcript; prepare 8038 transmittal letter 7/19/1999 SJB Phone call with 0 Koropchak re amendment to contract; draft same; letter to Koropchak. Total Services: Hours 0.50 0.20 1.50 0.60 MN190-00058 Economic Development TIF lake Tool (T J Martin) Through July 31,1999 '\):. ~ _ \ _ ~ \. For All legal Services As Follows: Hours 7/23/1999 SJB Phone call with 0 Koropchak re enforcement of deficiency 0.30 agreement Amount 34.75 34.75 1.50 0.00 0.40 1.90 Amount 69.50 27.80 120.00 83.40 300.70 Amount 41.70 ID-D . . . Page: 2 Kennedy & Graven, Chartered 200 South Sixth Street Suite 470 Minneapolis, MN 55402 City of Monticello Ollie Koropchak MN190-000S8Economic Development TIF lake Tool (T J Martin) July 31,1999 Total Services: MN190-00072 Economic Development TIF 1998 ~ 1:; C;- N 1\ \_ ':) '?:> Through July 31,1999 \ v For All legal Services As Follows: Hours 7/19/1999 SJB Phone call with 0 Koropchak re Midwest Graphics 0.30 request for additional assistance. 7/23/1999 SJB Phone call with 0 Koropchak re option for HRA to assist 0.30 with new jobs Total Services: Total Services and Disbursements : 41.70 Amount 41.70 41.70 83.40 462.45 / l)-- E . . . HRA Agenda - 9/8/99 11. Consideration of the Executive Director's Report. a) Twin City Die Casting - As you read in the newspaper, Twin City has committed to Monticello. However, the company may proceed with building a 20,000 sq ft building initially with a phased progression to the max of 80,000 sq ft. Therefore, the funding application has not proceeded until a final decision is made. It is Jay's desire to start with 40,000 sq ft. The company has a purchase agreement from Charlie Pfeffer which is being reviewed by Twin Cities' attorney. Jay Eller and general contractor Jack Girard met with Jeff, Fred, and Bret last week. The City Council has called for the TIF public hearing date of October 25, 1999. Attached updated job and wage goals. I have not received the executed Pre- TIF Agreement and $5,000. b) EDA Meeting - The EDA made a motion to support the HRA's request for $75,000 for industrial land acquisition and the North Anchor's request for an annual $200,000 appropriation for acquisition of substandard properties for the City Budget Year 2000. The EDA approved a $100,000 GMEF real estate loan for Aroplax Corporation. c) Grassl 7-foot walkway - At the suggestion ofDAT, the EDA was asked to consider requesting $20,000 for acquisition and improvements to the 7-foot walkway for City Budget Year 2000. However, in lieu ofthe Council direction to not increase the levy, the EDA requested the Executive Director to check if the $20,000 is an eligible expenditure of the DMRF. I have not had time to research this; however, I believe this is a power ofthe HRA and an eligible expenditure ofTIF within TIF Redevelopment District No. 1-22. Is the HRA interested in putting this in their 2000 year budget? d) North Anchor - The public information comments were submitted to the Council. The Council selected to table for six months any action to solicit a request for proposal for a mixed housing/commercial development. In time, they plan to address or answer the questions or comments from the public information meeting. Attached is a copy of the summary from the public information meeting. e) 200,000-230,000 sq ft building - I have an appointment to meet with Diba Sobhani, Sonic Courier, on Thursday, September 9,8:00 a.m. 1'11 be joined by Shingobee representatives and would like one HRA member to accompany. This is a social call. They are aware that the 20-acre freeway property is not on-the-market. f) City Budget Year 2000 - Next meeting scheduled for Tuesday, September 7,5:30 p.m. Update at meeting. g) Payable 1999 tax increment - On Tuesday or Wednesday, I checked with the County if the property taxes for Lake Tool or Custom Canopy had been paid. They had not. Per the attorney, I will contact or visit the companies to seek their intent to pay. The HRA 1 . HRA Agenda - 9/8/99 can file a claim. Additionally, I'm checking the current status ofthe bank loan as the EDA Lake Tool loan is subordinate to the bank loan. Custom Canopy's loan balloon payment was due and paid in 1998. i) 3 Walnut Street - Note the attached notice relative to the delinquent water/sewer bill. I have not received full payment for the August rent. $100 applied August 3. Amount due $450 rent plus $50 late penalty for a total of$500. September rent of$550 due and payable before September 15. . . 2 :< ,,;,,", ~..",..... ,".:.;.":.~.'.:~~:~.~.:-.' . '.'::-';' "'";';.' ~ . ~ ~.. tJ )< Q IJ I ii ~ .. !Z z ~ . ~ I (/\, 101 9 "^ t/I .J\ .J'. '" '^ 0 -lU 0 C':l =- GO US E1l 0 d.J \U 0 '2 Q 1 ~ I: :! '2 ~ 2 'c ~.; ,ti!: . I ~ = i =S2 = '" = I .. - e \.t1 C .Jl. lJ ..J "~,, 0 ....Sl - N 0 \? ~ 0 ~"A. ~:; - W) z~3 ! t g ] ~ t j ~ j 'tl ~ ~ ~ ] ! J III III ~ ~ .Q = = = N N N N ~ ~ N ;5 'U \ \ \ \ N <0.. !l \ \ I I , I l \ ~ If '" ~ . . lo .... -9 ~ N l! Q,,:; 4 :w- ~=Q ~ Q 15- os.!! ~ ~ zi ~ % ~ -- ~ .. ... t ~ - .. t t = > pioi< 1 S-1 ::J ~ <J ~ N Q~ . N t:N 2j <:::> i\l \r') ';j"' l.rj J.t ~ N !\j' Nl rI.lA. ? k ~ t l\J ~ 1 t ~ tV N N N ~ ~ ~ f. lS1 50" <=A. o () Q N C'/ (\J N {) (\J N cv j. I.{) J - ('J -- - - - - - - J~1 I z'a .. ~ Z -'l:! - Q " l] 'a d. =;; !l A ~ d UJ Ei~ 1: ':> OS .. J-< . .~ ~ '2 Z~ J ~ - = I!- ~ /?t ..- S l\J ;S~ ~i .! i: :>J. ~- j U 0 .- ~ - -= . - UlG; :! .! r- \\e>-) P.2/2 AUG 20 '99 09:35AM EHLERS & ASSOCIATES .' SCHEDULE OF EVENTS MONTICELLO HOUSING A..~D REDEVELOPMENT AUTHORITY ~"IiD mE MONTICELLO CITY COUNCIL lOR THE MODIFlCATION TO THE REDEVELOPMENT PLAN FOR THE ~ CENTRAL MONTICELLO REDEVELOPMENT PROJECT NO.1 A1'I"D THE ESTABLISHMENT OF TAX INCREMENT FINANCING DISTRICT NO. 1-%6 (an economic development district) August 23 1999 September 23, 1999 Stptember 24. 19Q9 . October 5. 1999 Oc:tober 6, 1999 October 6. 1999 October 12. 1999 October 14, 1999 October 14, 1999 October 25. 1999 October 25. 1999 . November 1999 As of AUl.!ust 20. 1999 City Council calls for public: hearing on the modification of Central Montic:ello Redevelopment Project No.1 and the establishment ofTa."(, Increment Financing District No. 1-26. Date of publication of hearing notice on business subsidies criteria public: hearing by the HRA (at least 10 days prior to hearing). [Monticello Times publication deadline Tuesday September 21. 1999J Fiscal/economic implications rcc:eivod by School District and County Board (at least 30 days prior to public: hearing). [Sent by Sept.mber 22. J 99~1 Planning Commission reviews Plans to determine if they are in compliance with City's comprehensive plan. HRA holds public hearing on setting business subsidies criteria. HRA considers the Plans. Contirm with the City whether building pennits have been issued on the property to be included in District No. 1-26. Date of publication of bearing notice on business subsidies criteria public hearing by the City Council (at least 10 days prior to hearing). [}4rJnlicello Times pub/lcalion deadline Tuesduy Oc;Iob,r J 2. J 999] Date of publication of hearing notice and map (at least 10 days but not more than 30 days prior to hearing). [Monticello Times publication deadline Tuesday October 12. 1999 J City Council holds p\1blic hearing on seuing business subsidies criteria. City Council holds public hearing at 7:00 pm on the modification of Central Monticello Redevelopment Project No. 1 and the establishmentofTax Increment-Financing District No. 1-26 and passes resolution approving the Plans. [Council packet tnformation sent by October 17. J 999 J Ehlers certifies Plans with county and state. . I ~.~~~~l~'~ \ \ Ck) . . . PUBLIC INFORMATIONAL MEETING RELATING TO NORTH ANCHOR PRINCIPLES August 3, 1999 SUMMARY: A total of nineteen business and residential property owners attended the public information meeting. Although the comments listed below appear somewhat negative, those comments were made by the same one or two individuals. Questions of process and comments of legitimate concerns were voiced. As a whole the residents were most anxious about the possibility of being kicked-out of their homes and the appearance and safety of their neighborhood. They appeared to like the long-term concept of green space in the area of Blocks 54,62,63, and 64, and acquisition of parcels as they come on-the-market. Business owners raised concerns relating to the economics and demands? Greatest concern: When does the City plan to go out for a request for proposal in the purple area? QUESTIONS AND COMMENTS: 1. What type of housing is recommended for the commercial/residential mixed-use area? Parking is an issue. How will it be handled? 2. In prior years, the City purchased land for the public parking lot in Block 52 and the adjoining property owners were assessed. How would this be handled? 3. As business owners, do we have to sell to the city? (Pink area) 4. Will Walnut Street be re-opened? Business owners along this strip were previously assessed for Walnut Street improvements. How would this be handled? 5. Businesses from Broadway north along Walnut Street would be affected by the elimination of parking due to necessary grade slope for opening up Walnut Street. 6. Two businesses recently completed upgrades or improvements, they deserve compensation. 7. Request for Proposal area: The City owns a small part of the property. Would developer approach the business or property owners? 8. As a resident, what if I do not want to sell? 9. As residents, we have no defense. City re-zones, buys us out. Re-zoned to CCD (Commercial-residential). 10. What gives the City (elected officials) the right? 11. City appears to put up what they want. \\ dJ . 17, 18, 19, 20, . 21. 22, 12, What's the plans for Blocks 62, 63, and 64? 13, In green area, what probability do we have in finding a buyer? 14, When will RFP go out for purple area? 15, With change of elected officials, council attitudes change, Then what happens to plan? Where does that leave us? 16. Economics is the driver for commercial, Commercial needs traffic and the exposure, The further back from traffic, the less viable, The City does what it wants, Example: Carlson property - City will not issue permit to reconstruct garage, Can't trust City, What is an RFP and how does it work? We just want to live in our houses, don't want change, Are we allowed to make improvements to our property? Can we get a permit? Appears City supports deterioration of neighborhood, 23, Requested those in attendance be notified when meeting comments are submitted to City CounciL 24, Resident - Would like to see Block 54 and the river front preserved as green space, 25, Resident - It appeared the principles are for long-term planning, GENTLEMAN'S AGREEMENT OF COMMITTEE PRESENT - It appears solicitation for a request for proposal in the purple may be premature at this time, given two proposed redevelopment projects were unable to cash flow: the medicaVprofessional office building on the Amoco site and the retail space on the BBF Property site, And given, the City has a request for proposal out on the Farrell Gas site, One thing that differentiate the purple area from the other sites is the recommendation for a mixed-use of housing and commercial/retail and the present demand for housing, . Recorded by Ollie Koropchak, \\0) .- MONTICELLO September 3, 1999 This is a reminder that your utility bill is now past due. Please check your records. If you have any questions or concerns regarding this billing, contact the Utility Billing Department at City Hall. If you feel that an adjustment to your account is necessary, we must be notified before October 18, 1999. The past due amount must be received by 4:30 on that date. Remember. this is the only reminder notice that you will receive. If your account still has a $10 balance after the due date listed above, our city ordinances and state statutes allow us to certify the unpaid utility bill as a special assessment against the property. To help deter delinquent accounts, there is an assessment processing charge of$50. This $50 assessment processing charge will be added to your delinquent balance. This delinquent bill will now be included on the assessment roll . to be considered by the City Council at a public hearing. NOTICE OF PUBLIC HEARING Notice is hereby given that a public hearing will be held by the City of Monticello City Council on October 25, 1999, at 7 :00 p.m. in the Monticello City Hall to consider the following matter: Consideration of adoption of an assessment roll on delinquent accounts pursuant to Monticello Ordinance, Sections 7-2-21, 7-3-3 (C), and 7-6-9 (B), and Minnesota Statute, .,..........-- Secti~ns 429~, ". T-'-"-"'--:i..4M.01~-A-fO..E.):,-9.~~:_~sse~sment roll is on file at the Montlcello C:,"Ji I --~-"-bCUl:tS...-.,.____._____ ~ . . .!!4 3 WALN ' . WrItten and oral testl~()h' referenced subject wlwi, , I / I .r(1 ~ f./UtI ~ Rick Wolfsteller City Administrator .............................~-............... --- Thl~ Ie a reminder that Y OUr aCCOUnt is now past due, We regret the neCesSlly Of S due and that a 4% late ending you this reminder that Ie In,correct YOu charge has been assessed If your utility bill Is peel (...., ' are entitled to a I ' YOU believe th t I ,~ephone number 296 2 revew or explanation b a your bill . 711.) Y COntaClIng City Hall. IIthl, Ie not paid within 30 d J aye. a dleconnocr nOl/c, IIIIIiiiiiiit PENALTY L) I r:EROM IE 0: TA --,BAM~ce . 3 WALNUT sr' MMY HACKER & '('" ,'," q I MON 1 ICE L LO MN H R.l. 55362 0lLIE t, L _'pN~~~E~~~' MN 55362 ~:.:' , City of Mont' , \\ f' Monticello City 1Iii1f, 7::1 '1:::.'..,.,.____.._.._ _~ _.. Ice 10 · RD. Box 1147 . Mo . ) Office of Public Works, 909 Golf Course Rd~, 'J9fd"mKt1'ri:It i"_.,,--_ ,_ _ __ _"~. n!~~e"ol MN 55362 . 295-2711 DATE 9/03/1999 . ACCOUNT NO. PREVIOUS BALANCE 1-0043-00-00 ? 4.65 2.95 77.60