HRA Agenda 10-06-1999
.
AGENDA
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, October 6, 1999 - 7:00 p.m.
City Hall
MEMBERS: Chair Bob Murray, Vice Chair Darrin Lahr, Brad Barger, Steve Andrews, and Dan
Frie.
1.
2.
3.
. 4.
5.
6.
.
COUNCIL LIAISON:
Brian Stumpf.
ST AFF:
Treasurer Rick Wolfsteller, Executive Director Ollie Koropchak, and Recorder
Lori Kraemer.
GUESTS:
Jay Eller, Twin City Die Castings Company
Brad Johnson, Lotus Realty Services
Call to Order.
Consideration to approve the September 8, 1999 lIRA minutes.
Consideration of adding agenda items.
Consent Agenda.
Consideration of items removed from the consent agenda for discussion.
Public Hearing - Consideration to approve the proposed Business Subsidy Agreement
(Contract for Private Redevelopment) between the HRA, City, and Twin City Die
Castings Company.
7. Consideration to approve a resolution adopting the Modified Redevelopment Plan for
Central Monticello Redevelopment Project No.1; establishing TIF District No. 1-26
therein; and adopting the related TIF Plan therefor.
8. Consideration to hear a presentation by Brad Johnson relative to the economics for
redevelopment ofthe commercial site located at West 7 Street and Locust Street.
9. Consideration to review and ratify the Notice to Terminate the House Lease at 3 Walnut
Street.
10. Consideration to review the appraisal for 1 Locust Street and to determine a
recommended purchase price/option offer for the City Council to consider funding.
.
.
.
11.
12.
13.
14.
lIRA Agenda - 10/6/99
Page 2
Consideration to authorize employing an attorney relative to TIF District No. 1-21.
Consideration to authorize payment of monthly HRA bills.
Consideration of the Executive Director's Report.
Consideration of Committee Reports:
a) City Council- Brian Stumpf
b) Community Center - Bob Murray
c) MCP - Steve Andrews
d) Marketing - Darrin LahrIBrad Barger
15.
Other Business.
16.
Adjournment.
.
.
.
MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, September 8, 1999 - 7:00 p.m.
City Hall
Members Present:
Dan Frie, Brad Barger and Darrin Lahr
Absent:
Chair Bob Murray, Steve Andrews and Brian Stumpf
Staff Present:
Executive Director Ollie Koropchak, Rick Wolfsteller and Lori Kraemer
1. Call to Order.
Acting Chair Darrin Lahr called the HRA meeting to order at 7: 15 p.m.
2. Consideration to approve the August 11. 1999 HRA minutes.
A MOTION WAS MADE BY DAN FRIE AND SECONDED BY BRAD BARGER TO
APPROVE THE MINUTES, AS WRITTEN, OF THE HRA MEETING ON AUGUST
11, 1999.
3.
Consideration of adding agenda items.
None
4. Consent Allenda:
A. Consideration to approve amending the Amended Bylaws of the Housing and
Redevelopment Authority in and for the City of Monticello, Minnesota.
It was requested at the previous meeting to consider amending the bylaws of the HRA,
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.
It was noted that consideration to revert back to the first Wednesday of each month is to
accommodate the schedules ofthe majority of the commissioners. As the commissioners
in attendance at the August HRA meeting were not adverse to the change, this items
appears on the consent agenda and upon approval, the next HRA meeting will be held
October 6, 1999.
1
.
.
.
A MOTION WAS MADE BY BRAD BARGER AND SECONDED BY DAN FRIE
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
WEDNESDA Y OF EACH MONTH, RESPECTIVELY.
5.
Consideration of items removed from the consent agenda for discussion.
None
6. Public HearinlZ and consideration to adopt the Business Subsidy Criteria for the Housing
and Redevelopment Authority in and for the Citv of Monticello. Minnesota.
Darrin Lahr opened the public hearing. No audience was present. Public hearing was
closed.
Ollie Koropchak provided a revision of the draft copy of the Business Subsidy Criteria
that was reviewed by the commissioners at the August meeting. The revised copy
includes the changes made by the commissioners and/or consultants.
A MOTION WAS MADE BY DAN FRIE AND SECONDED BY DARRIN LAHR TO
ADOPT THE BUSINESS SUBSIDY CRITERIA FOR THE HOUSING AND
REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO,
MINNESOT A.
7.
Consideration to hear Council input relating to acquisition of the propertv located at 1
Locust Street and authorization to solicit an aopraisal.
Tim Holm, property owner of 1 Locust Street was present. Ollie Koropchak provided
information regarding the property at 1 Locust Street and the current owner's interest in
putting this property on the market. Koropchak was contacted by the owners previously
to see if the HRA was interested in purchasing this property. It was also stated that there
was a possible party interested in renting this property until it is sold.
At the Council meeting of August 23, information relating to the owner's interest to sell
the property was submitted to the members. As an agenda item, the Council received the
comments and questions from the North Anchor public information 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 substandard parcels, safety concerns and an unattractive
Image.
With the initial goal of the Council not to increase the levy for Budget Year 2000, no
2
.
.
.
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.
Legal description of the property is the 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 Y2 story house, fireplace, 1,306 sq. ft. - Garage 360 sq. ft. - Site 13,068 sq. ft.
Ollie explained to the property owner that 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.
Several of the council members suggested the HRA go ahead with securing an appraisal.
If the council was willing to help fund this, the HRA members are interested in pursuing.
The members asked if there had been an appraisal of the property and the owner stated
there had not been one. The members asked what is the chance that there will be others
available in this block. Rick W olfsteller stated that the question of the council was that if
this was approved they would look into funding this, but without an amount of money in
mind they cannot make a decision.
Ollie asked the owner if he had any questions and if they did not sell this property to the
HRA, was there another interested party which he stated there was. Ollie stated that state
law directs that HRA cannot share the information from the appraisal until negotiations.
The members asked if the house would stay on the property or would it be tom down.
This is an option as well as the house could be sold and moved off the property. In the
event of an appraisal, Ollie would ask that an HRA member and possibly the Building
Official to go through the house. Ollie asked for some names of appraisers to contact.
This will be on the HRA agenda in October.
A MOTION WAS MADE BY DARRIN LAHR AND SECONDED BY DAN FRlE TO
AUTHORIZE AN APPRA.ISAL FOR THE PROPERTY LOCATED AT 1 LOCUST
STREET. Motion carried.
8.
Consideration ofa request bv Harold Jesh ofHRA's interest to hear a second presentation
for TIF assistance for a market rate housim! project.
Ollie Koropchak stated that Mr. Jesh had asked her to get direction from the HRA
members oftheir interest to hear a second presentation. Mr. Jesh appeared before the
HRA. on June 9, 1999, and asked the HRA of their interest to provide TIF assistance for
an upper-scale 18 to 24 unit market rate rental complex. He requested 15 years of the
90% available tax increment with a 20/50 criteria. Mr. Jesh stated the project would not
3
.
.
.
proceed without TIF 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 ofTIF 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 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. lesh requested to seek the HRA's
interest to hear a second presentation at the October meeting.
The members agreed that market rate housing is not truly market rate if a developer
receives TIF assistance. They still felt this is premature until a housing study is done.
A MOTION WAS MADE BY BRAD BARGER AND SECONDED BY DARRIN
LAHR OF NO INTEREST TO HEAR PRESENTATIONS REQUESTING TIF
ASSISTANCE FOR HOUSING PROJECTS UNTIL COMPLETION OF THE
HOUSING STUDY. Motion carried.
9.
Consideration of an update relating to amending the Private Redevelopment Contract
between l.AC. Development. LLC and the HRA and consideration of action if necessary.
Ollie Koropchak provided the report noting 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 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 l.A.C. to Midwest Graphics and
Response Systems, Inc. and to assign the right to Midwest Graphics to receive the
$181,000 if lA.C. has no liability upon a default by Midwest Graphics.
Midwest Graphics would be responsible for paying back this money if they do not fulfill
their contract. Ollie stated she did not know how strong, financially, Midwest is right
now. Members would like Midwest Graphics to provide a financial statement to be
4
.
.
.
assured that the company is financially capable. Income and balance sheets for the last
three years might be sufficient to show financial strength.
lA.C., 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 lA.C. for any costs associated by a property tax default.
Evidence of site improvement costs paid by J.A.C. has been satisfied. Yet to be received
is a copy of the executed Assignment from Allied Companies to lA.C. and from Steve
Krenz evidence adequately satisfactory to the HRA verifying Midwest Graphics ability to
finance the approximate $400,000 relocation move.
A MOTION WAS MADE BY DARRIN LAHR AND SECONDED BY BRAD
BARGER TO APPROVE RELEASING lA.C. DEVELOPMENT LLC FROM THE
RESPONSIBILITY OF THE JOB AND WAGE COVENANTS SUBJECT TO
RECEIVING INCOME AND BALANCE SHEETS OR A LETTER FROM
FINANCIAL LENDER AND EXPLANATION OF LOWER WAGES INDICATING
EVIDENCE TO FINANCE THE MOVE. Motion carried.
10.
Consideration to authorize payment of monthly HRA bills.
A MOTION WAS MADE BY DAN FRlE AND SECONDED BY BRAD BARGER TO
AUTHORIZE PAYMENT OF THE MONTHLY BRA BILLS. Motion carried.
11.
Consideration of Executive Director's Report.
Ollie Koropchak provided the report
a) Twin City Die Casting - Twin City Die Casting 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 with
Charlie Pfeffer which is being reviewed by Twin Cities' attorney. Jay Eller and
general contractor Jack Girard met with Jeff O'Neill, Fred Patch, and Bret Weiss
last week.
b)
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.
5
.
.
h)
.
c)
At the suggestion of OAT, the EDA was asked to consider requesting $20,000 for
acquisition and improvements to the 7~foot Grassl walkway for City Budget Year
2000. However, in lieu of the Council direction not to increase the levy, the EDA
requested the Executive Director to check if the $20,000 is an eligible expenditure
of the DMRF. Ollie stated she believed this is a power of the HRA and an
eligible expenditure ofTIF within TIF Redevelopment District No. 1~22. She
asked the members if the HRA was interested in putting this in their 2000 year
budget, and they responded "not at this time".
d) The North Anchor public information meeting 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. Ollie provided the members with a copy of the summary from the
information meeting.
e) Ollie stated she has an appointment with Diba Sobhani, Sonic Courier, on
Thursday, September 9. She will be joined by Shingobee representatives and
wanted one member of the HRA to accompany. This company is looking at
building a 200,000 to 230,000 sq. ft. building and Ollie advised them that the 20-
acre freeway property they were looking at is not on-the~market.
1)
A meeting for the City Budget Year 2000 was held on Tuesday, September 7 at
5:30 p.m. No appropriations made on anything.
g)
Last week Ollie checked with the County regarding the payable 1999 tax
increment for Lake Tool and Custom Canopy and was advised that neither had
paid their 1999 property taxes. Ollie was advised by the attorney to contact the
companies to seek their intent to pay. The HRA can file a claim as well. Ollie
also stated she is checking the current status of the bank loan as the EDA's Lake
Tool loan is subordinate to the bank loan. Custom Canopy's loan balloon
payment was due and paid in 1998.
Ollie provided a copy of the notice sent to 3 Walnut Street relative to the
delinquent water/sewer bill. She also stated she had not yet received full payment
for the August rent. $100 was applied on August 3; amount yet due is $450 rent,
$50 late penalty fee, September rent of $550 all due and payable before
September 15, 1999. As of the date of this meeting, Ollie had received $200.
Amount owing is $850 plus the water bill.
6
.
.
.
12.
Consideration of Committee reports:
These members were not present to provide the reports.
13. Other Business.
None
14. Adiournment.
A MOTION WAS MADE BY DARRIN LAHR AND SECONDED BY BRAD
BARGER TO ADJOURN THE MEETING. MOVED AND SECONDED A MOTION
TO ADJOURN THE MEETING. Motion carried.
Acting Chair Darrin Lahr
Recording Secretary, Lori Kraemer
7
.
.
.
HRA Agenda - 10/6/99
6.
Public Hearing - Consideration to approve the proposed Business Subsidy Agreement
(Contract for Private Redevelopment) between the HRA. the City and Twin City Die
Castings Company.
A. Reference and Background:
PUBLIC HEARING
Per Minnesota Statute 1161.993 through 1161.994, the "grantor" or "local government
agency" of a business subsidy must hold a public hearing when the subsidy awarded
exceeds $100,000. The HRA public hearing notice for the proposed award ofTIF funds
to Twin City Die Castings Company appeared in the Monticello Times, September 23 and
30, 1999. The notice enlarged and apart from other legal notices per the Statutory.
The HRA should open the public hearing for comments and questions from the public.
BUSINESS SUBSIDY AGREEMENT
The Contract for Private Redevelopment is the Business Subsidy Agreement for the HRA
and the City. Attached are excerpts from the draft copy of the document. The City is a
party to this contract because the City agreed to make the TIF local match in an amount
not-to-exceed $40,000 for utility trunk fees.
Highlights:
Page 7, Section 3.3 Payment of Administrative Costs.
Page 7, Section 3.4 Land Acquisition and Site Imorovements.
Page 8, Section 3.5 Financin~ of Land Acquisition and Site Improvement Costs.
Estimated TIF Cash Flows sufficient to coyer $225,000 NPV cost at 7.5%.
Page 9, Section 3.6 Business Subsidy Agreement. This section new.
Page 12, Section 3.8 Fee Waivers: Local Contribution.
Page 13, Construction of Minimum Improvements.
Page 17, Tax Increment: Taxes
Page 18, Financing
The Contract will be reviewed at the HRA meeting. The developer received a copy of the
second draft of the Contract on October 1. The City Council will consider approval of
the Contract on Monday, October 25, 1999.
1
.
HRA Agenda - 10/6/99
PUBLIC HEARING
After hearing comments or questions from the public, please close the public hearing and
proceed to consider the following actions.
B. Alternative Actions:
1. A motion to approve the Business Subsidy Agreement (Contract for Private
Redevelopment) between the lIRA, the City, and Twin City Die Castings
Company as proposed or subject to the recommended changes.
2. A motion to deny approval of the Business Subsidy Agreement (Contract for
Private Redevelopment) between the HRA, the City, and Twin City Die Castings
Company.
3. A motion to table any action.
C. Recommendation:
.
Recommendation is Alternative Action No.1. The Agreement is consistent with the
Minnesota Statute 1161.993 through 1161.994, the HRA Business Subsidy Criteria, and as
proposed to the developer.
D. Supporting Data:
Excerpts from Agreement. A copy ofthe entire proposed document is available at City
Hall.
.
2
.
.
.
l~~
ARTICLE III
Acquisition of Property; Site Improvements;
Financial Assistance
Section 3.1. Status of the Development Propertv. As of the date of this Agreement, the
Developer has entered into a purchase agreement with a third party for the Development Property.
The Authority shall have no obligation to purchase the property or any portion thereof.
Section 3.2. Soil Conditions. The Developer acknowledges that the Authority makes no
representations or warranties as to the condition of the soils on the Development Property or its
fitness for construction of the Minimum Improvements or any other purpose for which the
Developer may make use of such property. The Developer further agrees that it will indemnify,
defend, and hold harmless the Authority and its governing body members, officers, and employees,
from any claims or actions arising out of the presence, if any, of hazardous wastes or pollutants on
the Development Property. The Developer's obligations under this Section 3.2 shall survive
termination of this Agreement.
Section 3.3. Payment of Administrative Costs. The Developer agrees that it will pay upon
demand by the Authority, Administrative Costs (as hereafter defmed). For the purposes of this
Agreement, the term "Administrative Costs" means out-of-pocket costs incurred by the Authority
and attributable to or incurred in connection with the negotiation and preparation of this Agreement
and other documents and agreements in connection with the development contemplated hereunder.
Out-of-pocket Administrative Costs shall be evidenced by invoices, statements, or other reasonable
written evidence of the costs incurred by the Authority. As of the date of this Agreement, the
Developer has deposited $5,000 with the Authority to be applied toward Administrative Costs. The
amount by which this deposit exceeds the Authority's actual Administrative Costs, if any, shall,
upon demand by the Developer, be returned to the Developer, but no earlier than the date on which
the Developer receives a Certificate of Completion pursuant to Section 4.4 of this Agreement.
Section 3.4. Land Acquisition and Site ImJ;lrovement. (a) In order to make development of
the Minimum Improvements economically feasible, the Authority will reimburse the Developer, in
the manner and amounts set forth herein, for: (i) up to $210,000 of the Land Acquisition Costs,
hereby defined as the Developer's cost of acquiring the Development Property; and (ii) up to
$15,000 of the Site Improvement Costs, hereby defmed as the costs of landscaping, soil correction,
eligible exterior lighting, curb construction, and paving (the "Site Improvements") designed to
serve the Minimum Improvements. Any costs in excess of these respective amounts shall be the
responsibility of the Developer. The Authority shall have no obligation to the Developer or to any
third party with respect to any defects in the construction of the Site Improvements or the Minimum
Improvements.
(b) The Authority is authorized to acquire real property and convey such property to
private entities at a price determined by the Authority in order to facilitate development or
redevelopment of the Development Property. The Authority has determined that in order to make
development of the Minimum Improvements financially feasible, it is necessary to reduce the cost
of acquisition of the Development Property. The Authority has also determined that, in light of
SJB-169036
MN190-79
7
(Pit
.
potential environmental contamination of the Development Property and potential liability that
could be incurred by the Authority if the Authority takes title to the Development Property, it is in
the best interest of the Authority for the Developer to acquire the Development Property directly
from its current owner.
Section 3.5. Financing of Land Acquisition and Site Imorovement 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 Improvement Costs in accordance with the
following terms and conditions:
(a) Subject to the terms and conditions of this Agreement, the Land Acquisition Costs
and Site Improvement Costs will be paid with simple interest thereon at 7.50% per annum, interest
commencing to accrue on the date that the Developer complies with the cost certification
requirement described in paragraph (0 of this Section. The Land Acquisition Costs and Site
Improvement Costs will be paid by the Authority to the Developer in semi-annual installments
payable on each February 1 and August 1 ("Payment Dates") commencing August 1, 200 1 and
concluding no later than the Termination Date. These payments will be made from Available Tax
Increment as defined in this Section 3.3 and from no other source.
(b) The term "Available Tax Increment" means 89.75% 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.
.
(c) If on any Payment Date there is available to the Authority insufficient Available Tax
Increment to pay the amounts due on such date, the amount of such deficiency shall be deferred and
shall be paid, without interest thereon, on the next Payment Date on which the Authority has
available to it Available Tax Increment in excess of the amount necessary to pay the amount due on
such Payment Date.
(d) The Authority shall have no obligation to pay any portion of the Land Acquisition
Costs or the Site Improvement Costs that remains unpaid after the Termination Date. The
Authority may prepay all or party of the Land Acquisition Costs or the Site Improvement Costs at
any time.
(e) The Authority shall not be obligated to make any payment under this Section if: (i)
there is an Event of Default on the Developer's part under this Agreement that has not been cured;
or (ii) the Developer has failed to comply with the payment procedures described herein.
.
(0 At least 30 days before becoming entitled to receive any payment hereunder, the,
Developer must submit to the Authority a payment request certificate signed by its duly authorized
representative stating: (i) that the Developer has paid Land Acquisition Costs in.at least the amount
of $210,000 and Site Improvement Costs in at least the amount of $15,000; (ii) that no Event of
Default has occurred and is continuing under this Agreement; and (iii) that the Developer has
received a Certificate of Completion pursuant to Section 4.4 of this Agreement The payment
request certificate must be accompanied by evidence satisfactory to the Authority that the Land
Acquisition Costs and Site Improvement Costs have been incurred and paid by the Developer.
SJB-169036
MN190-79
8
~b
.
.
.
(g) The Authority makes no warranties or representations that Available Tax Increment
will be sufficient to pay the Land Acquisition Costs or the Site Improvement Costs. The Developer
agrees and understands that Available Tax Increment is subject to calculation by the County and
change in State law, and that a significant portion of Land Acquisition Costs and Site Improvement
Costs may remain unpaid after the Termination Date. The Developer further agrees and
understands that estimates of Available Tax Increment provided by the Authority and its agents,
officers, or employees are estimates only and not intended for the Developer's reliance.
Section 3.6. Business Subsidv Agreement. The provisions of this Section constitute the
"business subsidy agreement" between the Developer and the Authority and between the Developer
and the City, for the purposes of the Business Subsidy Act.
(a) General Terms. The parties agree and represent to each other as follows:
(1) The subsidy provided to the Developer by the Authority consists of payments to
the Developer for Land Acquisition Costs and Site Improvement Costs under Section 3.5
hereof, which payments represents a forgivable loan that is repayable by the Developer in
accordance with this Section. The payments under Section 3.5 are payable from a portion
of the Tax Increments from the TIP District, an economic development tax increment
financing district.
The subsidy provided to the Developer by the City consists of waiver of certain fees as
described in Section 3.8, which waiver represents a forgivable loan that is repayable by the
Developer in accordance with this Section. Those payments may be indirectly financed by
tax increments from the TIP District, as described in Section 3.8.
(2) The public purposes of the subsidy are to promote development of a
manufacturing facility in the City, increase net jobs in the City and the State, and increase
the tax base of the City and the State.
(3) The goals for the subsidy are: to secure development of the Minimum
Improvements on the Development Property; to maintain such improvements as a
manufacturing facility for at least five years as described in clause (6) below; and to create
the jobs and wage levels in accordance with Section 3.6(b) hereof.
(4) If the goals described in clause (3) are not met, the Developer must make the
payments to the Authority and City described in Section 3.6(c).
(5) The subsidy is needed because land acquisition costs and site development costs .
make development of the Minimum Improvements infeasible without public assistance, all
as determined by the City upon approval of the TIP Plan.
(6) The Developer must continue operation of the Minimum hnprovements as a
manufacturing facility for at least five years after the date of issuance of the certificate of
completion.
(7) The Developer does not have a parent corporation [or name the parent corp.]
SJB-169036
MN190.79
9
loG-
.
(8) In addition to the assistance provided under this Agreement, the Developer
expects to receive the following assistance in connection with the Minimum Improvements:
(a) a loan from the Monticello Economic Development Authority ("ED A") in the amount of
$100,000; and (b) a loan from the City (through the State Department of Trade and
Economic Development) in the amount of $400,000 to $500,000. However, nothing in this
paragraph constitutes a contractual obligation by the Authority, the City or the EDA with
respect to such assistance. The parties anticipate that the Developer will enter into separate
business subsidy agreements with the City and EDA in connection with such additional
assistance.
(b) Job and Wage Goals. Within two years after the date of issuance of the certificate of
completion of Phase I (the "Compliance Date"), the Developer shall cause to be created at least 89
new full-time equivalent jobs on the Development Property (excluding any jobs previously existing
in the State as of the date of this Agreement and relocated to this site) and shall cause the wages for
all employees on the Development Property to be no less than $17 per hour, exclusive of benefits.
Notwithstanding anything to the contrary herein, if the wage and job goals described in this
paragraph are met by the Compliance Date, those goals are deemed satisfied despite the
Developer's continuing obligations under Sections 3.6(a)(6) and 3.6(d). The Authority may, after a
public hearing, extend the Compliance Date by up to one year, provided that nothing in this section
will be construed to limit the Authority's legislative discretion regarding this matter.
.
(c) Remedies. If the Developer fails to meet the goals described in Section 3.6(a)(3), the
Developer shall repay (1) to the Authority upon written demand from the Authority a "pro rata
share" of the amount of any payments made to the Developer under Section 3.5 hereof, (2) to the
City upon written demand from the City a pro rata share of the amount of any fee waivers granted
under Section 3.8, and (3) to the Authority and City, respectively, interest on the amounts in clauses
(1) and (2) at the implicit price deflator as defmed in Minnesota Statutes, Section 275.50, subd. 2,
accrued from the date of issuance of the certificate of completion to the date of payment. The term
"pro rata share" means percentages calculated as follows:
(i) if the failure relates to the number of jobs, the jobs required less the jobs created,
divided by the jobs required;
(ii) if the failure relates to wages, the number of jobs required less the number of
jobs that meet the required wages, divided by the number of jobs required;
(iii) if the failure relates to maintenance of the Minimum Improvements in
accordance with Section 3.6(a)(6), 60 less the number of months of operation as a-
manufacturing facility (where any month in which the facility is in operation for at least 15
days constitutes a month of operation), commencing on the date of the certificate of
completion and ending with the date the facility ceases operation as determined by the
Authority Representative, divided by 60; and
.
(iv) if more than one of clauses (i) through (ill) apply, the sum of the applicable
percentages, not to exceed 100%.
SJB-169036
MN190-79
10
Lob
.
.
.
Nothing in this Section shall be construed to limit the Authority's or City's remedies under
Article IX hereof. In addition to the remedy described in this Section and any other remedy
available to the Authority or City for failure to meet the goals stated in Section 3.6(a)(3), the
Developer agrees and understands that it may not a receive a business subsidy from the Authority,
the City or any grantor (as defined in the Business Subsidy Act) for a period of five years from the
date of the failure or until the Developer satisfies its repayment obligation under this Section,
whichever occurs first.
(d) Reports. The Developer must submit to the Authority a written report regarding
business subsidy goals and results by no later than March 1 of each year, commencing March 1,
2000 and continuing until the later of (i) the date the goals stated Section 3.6(a)(3) are met; (ii) 30
days after expiration of the five~year period described in Section 3.6(a)(6); or (iii) if the goals are
not met, the date the subsidy is repaid in accordance with Section 3.6(c). The report must comply
with Section 1161.994, subdivision 7 of the Business Subsidy Act. The Authority will provide
information to the Developer regarding the required forms. If the Developer fails to timely file any
report required under this Section, the Authority will mail the Developer a warning within one
week after the required filing date. If, after 14 days of the postmarked date of the warning, the
Developer fails to provide a report, the Developer must pay to the Authority a penalty of $100 for
each subsequent day until the report is filed. The maximum aggregate penalty payable under this
Section $1,000.
(e) Audits. Upon written request of the Authority or City in any year, the Developer shall
retain at its expense an independent, third party accountant to audit any job and wage report
submitted by the Developer under paragraphs (d) or (f) of this Section. The Developer must deliver
to the Authority a written report from the accountant promptly upon completion of such audit.
(f) Green Acres Wage Requirements. The Developer acknowledges that the Development
Property qualified for "green acres" status under Minnesota Statutes, Section 273.111 within five
years prior to the request for certification of the District, and Developer is therefore subject to the
requirements of Section 469.176, subd. 7 of the TIF Act, in addition to the wage goals described in
paragraph (b) of this Section. The Developer shall cause at least 90% of the jobs located on the
Development Property to pay a rate equal to or greater than 160% of the federal minimum wage for
individuals over the age of 20. This requirement commences upon occupancy of the Minimum
Improvements (before the Compliance Date for the job and wage goals described in paragraph (b)
of this Section), and continues through the Termination Date (after the goals under paragraph (b) of
this Section have been satisfied). If the Developer fails to comply with the terms of this paragraph
at any time during the period before or after the requirements of paragraph (b) of this Section apply,
the Authority may exercise any remedy available under Article IX of this Agreement, including
without limitation termination of this Agreement or withholding of payments under Section 35.
hereof. However, the parties agree and understand that the requirements of this paragraph do not
constitute wage goals for the purposes of the Business Subsidy Act, and are not subject to the
remedies described in paragraph (c) of this Section. Notwithstanding anything to the contrary in
paragraph (d) of this Section, the Developer shall submit a written report to the Authority upon
initial occupancy of Phase I and on each March 1 thereafter through the Termination Date,
describing compliance with the wage requirements of this paragraph. Failure to complete such
report will constitute an Event of Default under this Agreement, but will not be subject to the
penalties described in paragraph (d) of this Section.
SJB-169036
MN190-79
11
(p~
.
.
.
Section 3.7. Use of Tax Increment. Except as set forth herein, the Authority shall have no
obligation to the Developer with regard to its use of Tax Increment and may use Tax Increment for
any lawful purposes, whether set forth herein or otherwise.
Section 3.8. Fee Waivers: Local Contribution. (a) The City will payor forgive up to
$40,000 of the storm sewer trunk and sanitary sewer and water trunk fees (the "Fees") that would
otherwise be due to the City and borne by the Developer in connection with development of the
Development Property, subject to the terms and conditions of Section 3.6 hereof.
(b) The parties anticipate that all or a portion of the local contribution requirement for the
TIP District under Minnesota Statutes, Section 273.1399, Section 6(d) will be met through the
Minnesota Department of Trade and Economic Development grant and loan as described in Section
3.6(a)(8). The Authority will reimburse the City for the amount of the Fees waived under Section
3.8(a), less any amount needed to meet the local contribution required for the TIP District after
taking into account the allowable local contribution attributable to the City's Department of Trade
and Economic Development loan, as determined by the Authority (the "City Reimbursement
Amount"), subject to the following terms and conditions:
(i) The Authority will pay the City the City Reimbursement Amount in installments,
without interest, on each August 1 and February 1, commencing August 1, 2001 ("City Payment
Dates") through the Termination Date, which payments will be made solely from and in the amount
of 5% 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 City Payment Date.
(ii) From and after the date that the Developer has been paid in full under Section 3.5, the
percentage of Tax Increment payable to the City hereunder is increased to 90%.
(iii) The Authority will have no obligation to pay the City any portion of the City
Reimbursement Amount that remains unpaid after the Termination Date.
(iv) If the Developer repays any portion of the Fees to the City under Section 3.6, such
amount will be deducted from the amount payable by the Authority under this Section. and the City
will promptly reimburse the Authority for any amount previously paid to the City from and to the
extend of such Developer repayment
SJB-169036
MN190-79
12
lo-r
.
.
.
ARTICLE IV
Construction of Minimum Improvements
Section 4.1. Construction of hnorovements. The Developer agrees that it will construct the
Minimum Improvements on the Development Property in accordance with the approved
Construction Plans and at all times during the term of this Agreement, will operate and maintain,
preserve and keep the Minimum hnprovements or cause such improvements to be maintained,
preserved and kept with the appurtenances and every part and parcel thereof, in good repair and
condition. The Authority shall not have any obligation to operate or maintain the Minimum
hnprovements.
Section 4.2. Construction Plans. (a) Before commencement of construction of the
Minimum hnprovements, the Developer shall submit to the Authority Construction Plans. The
Construction Plans shall provide for the construction of the Minimum hnprovements and shall be in
conformity with the Redevelopment Plan, this Agreement, and all applicable State and local laws
and regulations. The Authority will approve the Construction Plans in writing if: (i) the
Construction Plans conform to the terms and conditions of this Agreement; (ii) the Construction
Plans conform to the goals and Objectives of the Redevelopment Plan; (ill) the Construction Plans
conform to all applicable federal, state and local laws, ordinances, rules and regulations; (iv) the
Construction Plans are adequate to provide for construction of the Minimum hnprovements; (v) the
Construction Plans do not provide for expenditures in excess of the funds available to the
Developer from all sources for construction of the Minimum Improvements; and (vi) no Event of
Default has occurred. Approval may be based upon a review by the City's Building Official of the
Construction Plans. No approval by the Authority shall relieve the Developer of the obligation to
comply with the terms of this Agreement or of the Redevelopment Plan, applicable federal, state
and local laws, ordinances, rules and regulations, or to construct the Minimum Improvements in
accordance therewith. No approval by the Authority shall constitute a waiver of an Event of
Default. If approval of the Construction Plans is requested by the Developer in writing at the time
of submission, such Construction Plans shall be deemed approved unless rejected in writing by the
Authority, in whole or in part. Such rejections shall set forth in detail the reasons therefore, and
shall be made within 10 days after the date of their receipt by the Authority. If the Authority rejects
any Construction Plans in whole or in part, the Developer shall submit new or corrected
Construction Plans within 10 days after written notification to the Developer of the rejection. The
provisions of this Section relating to approval, rejection and resubmission of corrected Construction
Plans shall continue to apply until the Construction Plans have been approved by the Authority.
The Authority's approval shall not be unreasonably withheld. Said approval shall constitute a
conclusive determination that the Construction Plans (and the Minimum hnprovements constructed
in accordance with said plans) comply to the Authority's satisfaction with the provisions of this
Agreement relating thereto.
(b) If the Developer desires to make any material change in the Construction Plans after
their approval by the Authority, the Developer shall submit the proposed change to the Authority
for its approval. If the Construction Plans, as modified by the proposed change, conform to the
requirements of this Section 4.2 of this Agreement with respect to such previously approved
Construction Plans, the Authority shall approve the proposed change and notify the Developer in
SJB-169036
MN190-79
13
l..oG
. writing of its approval. Such change in the Construction Plans shall, in any event, be deemed
approved by the Authority unless rejected, in whole or in part, by written notice by the Authority to
the Developer, setting forth in detail the reasons therefor. Such rejection shall be made within ten
(10) days after receipt of the notice of such change. The Authority's approval of any such change in
the Construction Plans will not be unreasonably withheld.
Section 4.3. Commencement and Completion of Construction. Subject to Unavoidable
Delays, the Developer shall commence construction of the Phase I of Minimum Improvements by
December 1, 1999. Subject to Unavoidable Delays, the Developer shall complete the construction
of Phase I by June 1,2000, and shall complete construction of Phase II by June 1, 2002. All work
with respect to the Minimum Improvements to be constructed or provided by the Developer on the
Development Property shall be in conformity with the Construction Plans as submitted by the
Developer and approved by the Authority.
.
The Developer agrees for itself, its successors and assigns, and every successor in interest to
the Development Property, or any part thereof, that the Developer, and such successors and assigns,
shall promptly begin and diligently prosecute to completion the development of the Development
Property through the construction of the Minimum Improvements thereon, and that such
construction shall in any event be commenced and completed within the period specified in this
Section 4.3 of this Agreement. The obligation to construct the Minimum Improvements in
accordance with this Section touches and concerns the land, and shall run with the property and be
binding upon all successors and assigns to the Development Property. After the date of this
Agreement and until construction of the Minimum Improvements has been completed, the
Developer shall make reports, in such detail and at such times as may reasonably be requested by
the Authority, as to the actual progress of the Developer with respect to such construction.
Section 4.4. Certificate of Completion. (a) Promptly after completion of the Minimum
Improvements in accordance with those provisions of the Agreement relating solely to the
obligations of the Developer to construct the Minimum Improvements (including the dates for
begiIll1ing and completion thereof), the Authority will furnish the Developer with a Certificate
shown as Exhibit B. At the Developer's request, the Authority will provide separate certificates for
Phase I and Phase II. Such certification and such determination shall not constitute evidence of
compliance with or satisfaction of any obligation of the Developer to any Holder of a Mortgage, or
any insurer of a Mortgage, securing money loaned to finance the Minimum Improvements, or any
part thereof.
(b) If the Authority shall refuse or fail to provide any certification in accordance with
the provisions of this Section 4.4 of this Agreement, the Authority shall, within thirty (30) days
after written request by the Developer, provide the Developer with a written statement, indicating in
adequate detail in what respects the Developer has failed to complete the Minimum Improvements
in accordance with the provisions of the Agreement, or is otherwise in default, and what measures
or acts it will be necessary, in the opinion of the Authority, for the Developer to take or perform in
order to obtain such certification.
.
(c) The construction of the Minimum Improvements shall be deemed to be complete
upon issuance of a certificate of occupancy by the City for, and the opening for business of, the
Minimum Improvements.
SJB-169036
MN190-79
14
&;
H
.
.
.
ARTICLE VI
Tax Increment; Taxes
Section 6.1. Right to Collect Delinquent Taxes. The Developer acknowledges that the
Authority is providing substantial aid and assistance in furtherance of the development. The
Developer understands that the tax increment intended to pay expenses of the Authority and the
Developer are derived from real estate taxes on the Development Property, which taxes must be
promptly and timely paid. To that end, the Developer agrees for itself, its successors and assigns, in
addition to the obligation pursuant to statute to pay real estate taxes, that it is also obligated by
reason of this Agreement to pay before delinquency all real estate taxes assessed against the
Development Property and the Minimum hnprovements. The Developer acknowledges that this
obligation creates a contractual right on behalf of the Authority to sue the Developer or its
successors and assigns to collect delinquent real estate taxes and any penalty or interest thereon and
to pay over the same as a tax payment to the county auditor. In any such suit, the Authority shall
also be entitled to recover its costs, expenses and reasonable attorney fees.
SJB-169036
MN190-79
17
~r--
.
.
.
ARTICLE VII
Financin2:
Section 7.1. Mortgage Financing. (a) Before commencement of construction of each Phase
of the Minimum Improvements, the Developer shall submit to the Authority evidence of one or
more commitments for mortgage financing which, together with committed equity for such
construction, is sufficient for the acquisition of the Development Property and constructing the
subject Phase of the Minimum Improvements. Such commitments may be submitted as short term
financing, long tenn mortgage financing, a bridge loan with a long term take-out fmancing
commitment, or any combination of the foregoing. Such commitment or commitments for short
term or long term mortgage financing shall be subject only to such conditions as are normal and
customary in the mortgage banking industry.
(b) If the Authority fmds that the mortgage financing is sufficiently committed and
adequate in amount to provide for acquiring the Development Property and constructing the
Minimum Improvements then the Authority shall notify the Developer in writing of its approval.
Such approval shall not be unreasonably withheld and either approval or rejection shall be given
within thirty (30) days from the date when the Authority is provided the evidence of mortgage
financing. A failure by the Authority to respond to such evidence of mortgage fmancing shall be
deemed to constitute an approval hereunder. If the Authority rejects the evidence of mortgage
financing as inadequate, it shall do so in writing specifying the basis for the rejection. In any event
the Developer shall submit adequate evidence of mortgage financing within thirty (30) days after
such rejection.
Section 7.2. Authority's OPtion to Cure Default on Mortgage. In the event that there
occurs a default under any Mortgage authorized pursuant to this Agreement, the Developer shall
cause the Authority to receive copies of any notice of default received by the Developer from the
holder of such Mortgage. Thereafter, the Authority shall have the right, but not the obligation, to
cure any such default on behalf of the Developer within such cure periods as are available to the
Developer under the Mortgage documents.
SJB-169036
MN190-79
18
U,s
.
e Ambulance runs
Three traumas had Big Lake-
;t Monticello Ambulance crews hop-
I. ping into their rigs this past week.
:l They were to:
:1 . A car collision at the comer of
s '
'" Hwys. 10 and 25 in Big Lake'
Tuesday, Sept. 14, at 9:45 a.m. One
patient was transported to the
. Monticello-Big Lake Hospital, treat-
:1 ed and released.
1 . The Monticello school bus/car col-
d
lision near Osowski's Orchard Fun
e Market at 8:20 a.m. Thursday. No
one was transported from the scene,
1. but the bus driver was later brought
d in, treated and released.
e . A one-vehicle incident where the
e .car went into the ditch and hit a
It lone pole a.t the corner of 90th
"S t and Harding Ave. in
icello Township at 2:50 a.m.
O. Sunday morning. lWo passengers in
the vehicle were transported to the
It, hospital, where they were treated and
e released. The third victim, the driver,
s was later transferred to North
It Memorial' Medical' Center in
d Robbinsdale.
'.,' ,,".
,V'vl'u.....;;hv \"""I,,.J ,,",a;;:l""" lul ,)udy, ";''''1-1\' ':".;1, ,::.,;;..;:t-t a~U '"
NOTICE OF PUBLIC HEARING
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONITCELLO
NOTICE IS HEREBY GIVEN that the Commissioners of
the Housing and Redevelopment Authority In and for the City
of Monticello Minnesota, will hold public hearing on
Wednesday, October 6, 1999, 7 p.m., in the City Hall, 250
East Broadway, Monticello, Minnesota, regarding a proposed
business subsidy'to be granted by the Housing and
Redevelopment Authority to Twin City Die Castings
Company ( the uRecipient") under Minnesota Statutes,
Sections 116J.993 to 116J.994. The proposed subsidy
involves tax Increment financing assistance to facilitate
development of a manufacturing/office facility by the
Recipient in the City.
Information about the proposed business subsidy and a
copy of the draft business subsidy agreement are available
for inspection at CiW Hall during regular business hours.
All interested persons may appear and be heard orally and
in writing.
~lIie Koropchak
HRA Executive Director
(Publish Sept. 23 , 30, 1999)
'.
Building or buying
a new'home?
I Purchasing,
building or
__ll_............:....1"I
Real Estate Auction
In order to settle Keith C. Cox Estate
300+ Acres
Offered At Auction
Thursday, Oct. 7th
1 p.m.
llo')
iJJ~
~
_.
HRA Agenda - 10/6/99
7.
Consideration to approve a resolution adopting the Modified Redevelopment Plan for
Central Monticello Redevelopment Proiect No. L establishinll TIF District No. 1-26
therein~ and adopting the related TIF Plan therefor.
A. Reference and Background:
The HRA is asked to approve the enclosed resolution for establishment of TIF District
No. 1-26 (Twin City Die Castings Company) which reads in the opinion of the HRA, the
proposed development as described in the Plans would not reasonably be expected to
occur solely through private investment within the reasonably foreseeable future and
therefore, the use of TIF is deemed necessary and the HRA has performed all actions
required by law. The 30-day notification and Plan were submitted to the County and
School on September 22, 1999, and the Planning Commission will consider their
resolution for approval on October 5, 1"999. The Public Hearing Notice and Map will be
published in the Monticello Times, October 14 and 21, 1999, with the Public Hearing
scheduled for October 25, 1999, City Council meeting. The site to be known as Lot 1,
Block 1, Monticello Commerce Center Fourth Addition.
Additionally, the resolution for adoption states the HRA finds TIF District No. 1-26 is in
the public interest and meets the requirements of an "economic development district."
Lastly, it authorizes staff to proceed with implementation of the plan.
The proposed manufacturing project consists of a total 52,000 sq ft building. Constructed
in two stages: 36,000 sq ft for occupancy June 2000 and an additional 16,000 sq ft for
occupancy June 2002. The total 52,000 sq ft building is estimated to have a building
estimated market value of$1 ,487,810 and estimated tax capacity of $49,088. Over the
life of the district, the district is anticipated to generate a tax increment total of $245,681
NPV @ 7.5%. The project will create 89 new jobs for the City of Monticello at an
average hourly wage of $17.06.
The Preliminary Development Agreement between the HRA and Twin City Die Castings
was executed on September 10, 1999, and the $5,000 deposit received.
The City will reduce the utility trunk fees in an amount not to exceed $40,000 and because
the State of Minnesota will provide funds to this TIF project, tax increment can be used to
reimburse the City. It is proposed that the City and HRA split the 10% tax increment until
such time the City is reimbursed.
The following actions consider approval or denial ofthe new TIF Plan and modification of
Redevelopment Project No.1.
1
HRA Agenda - 10/6/99
B. Alternative Actions:
~ ~ ~ A motion to approve a resolution adopting the modified Redevelopment Plan for
Central Monticello Redevelopment Project No. 1; establishing TIF District No. 1-
~ 26 therein; and adopting the related TIF Plan therefor.
2. A motion to deny approval of a resolution adopting the modified Redevelopment
Plan for Central Monticello Redevelopment Project No. 1; establishing TIF
District No. 1-26 therein; and adopting the related TIF Plan therefor.
3. A motion to table any action.
C. Recommendation:
Recommendation is Alternative Action No. 1. The proposed project meets the Business
Subsidy Criteria of the HRA and the economic goals and objectives of Central Monticello
Redevelopment Project No. 1, and is consistent with the City Comprehensive Plan.
D. Supporting Data:
Resolution, site, map, TIF Cash Flow, summary of Plan, and job and wage-level goals
•
.!
.
.
, ,
SEpiZ7 '99 '08:59AM EHLERS & ASSOCIATES
I
P.3/4
(rtl
: i
;
;
.. ! :
:!
1"1
": :
,
MON'nCELLO HOUSING AND REDEVELOPMENT AUTHORITY
. ; CITY OF MONTICELLO'
WRIGHT COUNTY
STATE OF MINNESOTA
"
I' ".;. '~
,.,,('j~~i~~:',.\, ,,;:,/
, ~. ,.,~!. -::..:.:,.1"
",'?,':,:'.:,;,.' I
:,I '~ ';.." "
, .
;
n'. ".:', ,:., ,~'
,::.':::.,:<<. ',::i' RESOLUTION NO.
/"-:~'/ ,~::,:" "':,/i;',.:~~~ I
, RE.SOL.tr.:UON ADOPTING THE MODIFIED REDEVELOPMENT PLAN FOR
".,\ " I . " 'I.
~;'V:>~;ipE:~~lRAL . MONTICELLO REDEVELOPMENT PROJECT NO.1;
',"",';:;';'~:~~TABLISHING rAXINCREMENT FINANCING DISTRICT NO.l~26 THEREIN;
..' ,~D ADOPTING THE RELATED TAX INCREMENT FINANCING PLAN
,THEREFOR.
"\:::: \:~~.. '.j.'
WHEREAS, it has been proposed that the Board of Commissioners (the "Board") of the Housing
and Redevelopment Authority (the "HRA)" for the City of Monticello (the "City") adopt the Modified
ltedevelopment Plan for Central Monticello Redevelopment Project No. 1 and establish Tax Increment
Financing District No. J -26 and adopt the Tax Increment financing Plan therefor~ (collectively. the "Plans"),
all pursuant to and in conformity with existing law, including Minnesota Statutes, Sections 469.001 through
469.047, and Sections 469.174 to 469.179, inclusive, as ~mended, aU as reflected in dle Plans and presented
for the Board's consideration; and
WHEREAS, the BRA has investigated the facts relating to the Plans and has caused the Plans to be
prepared; and
,
WHEREAS. the proposed developments as described in lQe Plans, in the opinion oftheHRA, would
not reasonably be expected tq occur solely through private inve$unent within the reasonably foreseeable
future and, therefore, the use (j)ftax. inc~ment financing is deemed necessary; and
' , ,.
. , .
WHEI\EAS, the BRA has performed all actions required by law to be performed prior to the
adoption of the Plans, inclUding but not limited to, notif;ication of Wright C9unty and School District No.
882 qaving taxingjul'isdiction over the property to be incll.\ded in Tax r ncremenl Financing District No. 1-26,
a request for rcview of and written comment on the Plan$ by the City Planning Commission, and a request
tha~ the Council schedul,e a public hearing on the Plans upon published notice as required by law.
I ~
NOW. THEREFORE, BE IT RESOLVED by the Board ,s fO,nows:
. I " I '
, I. \ The HRA hereby finds that Tax J ncrel'Qcnt Financing District No. 1-26 is in the public
interest and is an "ecoDom ic development district" under ~jnn~sota Statutes, Section 469.174, subd. 12, and
finds that the adoptil,)oofthc proposed Plans will advance the HRA's and City's objectives of encouraging
developmel\t within Central MonticeHo Redt:velopment Project No.1.
2. Conditioned upon the approval thereof by the City Council following its publiC hearing
thereon, the PlaQS, as presented to the HRA on this date, are hereby approved, established and adopted and
shaH be placed on file in the office of the City Administrator.
N:\Millnlo..lMcmliG~llo\ 1lF 1-26\HRA,wpd
i i
'1 It-
.
.
.
Ii
SEPt;:::?
I
I,
I i
I '
,
I, 3. Upon approval of the Plans by the City Council, the staff, the HRA's advisors and legal
co~nselar" a~thorize? and dire,ct~d to proceed with the implementation of the Plans and for this purpose to
negotiate, draft, prepare .~nd ,: present to this Board for its consideration all further plans, resolutions,
documents and contrac'ts,ne~es&an'''for this purpose. Approval of the Plans does not constitute approval of
any project Or a Dev~~~\~~le~lC~greement with any de~eloper.
4. . JJ.p'i!ri':':approval of the Plans by the City Council, the Executive Director of the HRA is
authorized to,,~o'rw~d:;acopy of the Plans to the Minnesota Department of Revenue pursuant to Minnesota
Statu~es 469~r75'~'."subdivisjon 2.
\(~::t;:~>,;. ~\{)/~.:~" '", ',;;'.".
,,:,;.>>/$:;':':::,";:'::;:-'The City Administrator is authorized and directed to forward a copy of the Plans to the
~tight Courtty Auditor and request that the Auditor certify the original tax capac.ity of District No. 1-26 as
q~~,~~,i.b!?d in the Plans. all in accordance with Minnesota Statutes 469.177.
1 I' !
'99 ~09:00A~ E~L~RS f ASSOCIATES
ii' j' "
': . I i fl'
P.4/4
"I:': ':'~J\"\~
Approved by the Board of Commissioners of the Monticello Housing and Redevelopment Authority
this day of , 1999.
Chair
ATTEST:
Executive Dir~ctor ofthcil HRA
I ,
i I
i ,
I
, ;
, I
t
, 1
I .
II
;
f
;
I .
I i
, ;
N:\MillIlO(lI;.\,Monticcllo\ TIF 1.26111RA.wpd
'76
SEP 29 '99 08:53AM EHLERS & ASSOCIATES
co.,..
N, '
"1"";1
*
i~ t
._ tf .s II
C E- e
, ....e
_-u.-
-0'--
s:---
,- g: a ~
~":ie
_"l:J_:1
'''lIIo_o
.Ii ~ a- U
~:~"I'"
-lIu.c
i ~ .!'
! J: ~
!:
CJ-
=e
>C~
~~
-
~
rl'7"~ 4~4.
~ . . .
t":"'" . 1'\.9- '.
: ,~,' ' ~" '.
,. r . I ~,.; . "., ~. ~\ .......... . It
.~; .1"'~!1 ".,. J _ . 1" .. ~ " '
. ,..... III. ., . ... \
: ;.... I :. .~.. \ 41
""'" ,.. _ .. ... .. :.. .....J _ ..... ~ ..
1,. .. .' '.' ... '\ '
::.~ ,., ...
.l:'.. ~..... -. \.,
:.. ,-I t""
. I <
,.
.. -..:.
..
~
J'
",
.
.
, .
,
... .
-.. .
.. ..
::
~
,
..
, ,
.! ...1"
, .' "
-.-::'tli · ...
. , .' !t "
i.." I '
II:
.
," ,
.
.Q
-
Q)
0
==
c: ::
0
~ :e
tl
15 .N
....ea
~ .: .=
.-
- .. ft
c:; ':~
'.
.~
:&'.
!.o/t~
.:r=!
t :,,1:;
..;rw
i:.. ,
;.~I
iil-
{!3}
I.:.
. ~ .
, .
. ....
..... -
P.7/8
,
,
. .
.,
.
-
..
.
v
C
...
*' Ii
-0.
E 0
--
- -
..
"""
~"
--
ute
\~
~
...
'. .
1(/
SEP, 29 '99 08:53RM EHLERS & RSSOCIATES
.
j
, I
~ .
~....;
, or: i I
Oi'
~l;
'- 'I; ~
,! (.2 ::
C _C'
, 3 I::
en 0 .- ;,;
.=_..~
,- ~ S~
.!!
._ a:: :. S
1,&.0*_
!-=U.c
, C GJ R
iGlJ.! ...
, E 1! ~
: GI 0
, ... :E
u-
s:: l!
: -;c 1:
-a
~. ,
.
,~.
..... '
t:;
Q
~
.=
. .....
~
~ffi
'~
~
'0.
~
, &5'
GI
i5
u.
Q
\.IJ
fJ ~I
~ 99
52' cod
.0
~ rt ....
m .... s'
e 9i
'~i'
.. en
i!: .!:eI.....
~ .0 C?
~ oCt;
2 ~9
.~ ena:
J:!
I
I
I
~"'~
~
I
I'
"
.
J
.
I
'q
.... co
c ~
I "...
e 'I i
~~:g
xii:iil
:! ~
I.
'1
J
I
..
,f
I
I
~tt '':09. .1
-
~
&n
eft
'I
J'
..)-.
'"
-"..
.~
P.8/8
1-1)
.
.
.
SEP 17 '99 11:17RM EHLERS & RSSOCIRTES
09117199 MondceUo HFlA: TWIn C<<y Ole Caellt'1C18 - PIlese I & II
CITY OF MONTICELLO, MINNESOTA
T.J.F. CASH FLOW ASSt.lMPT10NS
7.500%
1.a1070 PlY"
0.0000""
Inl.....l!\ace
r.. ~n.lon Rate:
Inflation Alita:
P.5/6
Pay 85
"..Y.ll!~ ,
28.178
Tu.
,. ,c.p.aci~
1.152 feumel.. only
,.0
. 1,.152 ElllmatlKl P.v 00 Tu: Capaeil't
PIN
Pan of 155-011.000-171"' ,
,.,__ ,(0, ~~), . ,......
T9..1
47.897
Original Tall C.1Ci1Y 1fl(lIIior! PlctOr.
"UI7'lt
PROJ!CT VA t.lJE lNFORMA 1'ION
Type (If Tax I"~nl ~lJ'Ict ' e..,,(Il'I\!C Oellcltlp"';,nl
Type ot Clvelopmlnt: Manur.ttul'in'
NumD8r or 81lllCllng Sqlla... Felt 315,091 PI1"1 I
~ Pllase II
52,375
Eslim't8d Market V.hle of New Project:
01... ,..It on nrtt ,,50,00001 M.rIIlr V,IIl'
CI... Rell MlrIIlt Valu. ,. $150,000
&sllml1ld T.ar Ca..Qj~:
uo~
3.40%
I!stimated Taxes:
AsHlSOl"S Mancil V"lllls.f,
T"'"II,(,
AssulTlet Illstl'iet II apptlWld il'l October, 1 eei.
PI,"" verify merlcat valUI for Il4IGS Ind ;IlOO fOf five Yler il'l1'llrion value,
AHUl'TMlS 15% pattial ule;smenl of inerem'nl III of Jan. 2. 2000.
, ,
i Illltt'lil'ld ~lu, Inc.
I :
1,019,000 Pay 02
m.!l2 Ply 04
1,487,110
33,140 PlY 02
~ Pay 04 ~1l..1i
40,086 Total
43,643 Phal.1
2UU Phase II
&U31 Tolal
iZIMCi Phase I
$28,10 PhaaeU
11,;2
1S
Pave' llIIeMliII.1a3
SEP 17 '99 11:17RM EHLERS & RSSOCIRTES
05/1719' I\o1Cl11\IC8~O HI'IA: 1'\l<fn Clly Ole Caallnll* . P~U8 I & II
.
P.6/6
CITY OF MONTICELLO. MINNESOTA
I ~ ... --" Base ~~-U'pfOjec.;d- nQeptUred'
: PEIltIOD aeGINNING Tile Tu Tax
: . Yrs. ,. .. ~,th.. ,Yr. Capaclry eaPll.c;!lY.... ~~G!lV
,I 0.0 "-01 1iil 1,152 1.Hi2 0
:', ; I 0.25 02-01 2000 1.1$2 1.1$2 0
0.7$ 08-01 2000
,
i 1.25 02.0' 2001
/',71 0'.01 leQ1
U' 0,.01 100'
U. ON' 100'
U. 02001 100'
ii.1$ 0'.01 1I00i
,US 02001 2004
. 4.7' 08-01 20~
i 5.25 02-01 ZOOS
: 5.75 08-01 2005
i 13.26 02..01 2008
. 8.75 08-01 2006
i 7,25 Oi-01 2007
i 7.7S Oa..o1 2007
I 1,2' 02.01 aoo.
I 8.75 01001 200.
,1.25 OZ001 200i
, ,t7~ ......R~~ 2008
TAX INCREMENT CASH FLOW
'Sem~rinu.I'" _. Adift;n ... . .. 'HM' .
;/'QM Till .1 ..
1l1Cl'emlnl 10.25% 0.0%
'... ... ..0............ .if.............. ,,,
o 0
o 0
2.a,. (24G)
'.." (,...)
ao,7" (11.1")
",'I'1t (1,1")
10,11" (I,HI)
:ZO."" Ii, n,)
30..,0 (3. HIS)
30.910 (3.1S8)
30.676 (3.144)
30.67S ~.144)
30..&03 (3.116)
30.403 (3.115)
30.08<1 (3.084)
30,014 (3.0'4)
20.712 (3,045)
29,712 (:3,045)
oill.278 (3.001)
29,27a (3.001)
448.716. ... .... ...l4e.o~) ,._.
273.738, ., (2a,08,S)
'S.mi.Aj,n~Ii' -Locir- r-yu,." . ... ."-..-- ..... ....---;
Ner TN: Milch ot 'Of PERIOO iNDING !
.InS/1m'/lL , 1JI..90~J '.~t. ... :r~....,!m"-JL-:
o 0 I 0.0 0.25 0:1-01 aGOo .
o 0, 0.0 0.'1$ 0&-01 2000 ,
o 0 i 0.0 1.25 02..01 2001
o 2,1<44 23~ 0,5 1.'15 Qa-()1 2001
o a,1<44 n, 1.0 I.U 03.091 1001
D 11,1" z.o7, U 1.7' 0t.01 aoo.
· ,t,.._ 3,9'1' ... t,;'1 OW1 ....
I '1,10. IU'. U ',1' 064, IdO.
II '..,QI :U.. u "'.z. 01.01 "IM
o 27.7'2 3.00' I U ".'7/1 0.-01 10M
o 27.742 3.091 ..0 5.25 02.01 2005
o 27,532 3.068 4.5 5.75 08-01 2005
a 27.532 3.0ee S.O 8.25 02-01 2005
o 27,286 3,0..0 5.5 6.75 08-01 200S
o 27.288 3.040 6.0 7.25 02.01 2007
o 27.000 3.008 '.$ 7.75 01-01 2007
o 27.000 3.008 1.0 8.25 02.01 :Z008
o 2uee 2.871 7.1 1.75 08.01 2001
o 28.0S8 2.971 '.0 1.2' 02.01 aoal
o 28,277 2.e2i U 1.75 0,"01 2001 :
o 28.277 2.9281 ...Q..)9,2~,.<I2.'.9j"'~11
o 403.620 +U72
. .0" :..: .-'~~"aa'T ~':-::.'=:::' :c~::::..::.::~~. ''-~::~.~. .~. .. ___.--!
!.. .
1.~
Ufl
1,U'
2.1M
2.490
2.905
3.390
USS
4.81.
4.912
11.14'
",1'"
41.0e.
49.085
49.086
48.080
4'.0'5
<41.088
3.128
".1'1'1
I',i,'
4U"
48.585
46,180
45.090
4'.131
44.472
TOlals
..-...---..____E~.n!.y!l!~!1 . ...
.
t,
.:
j I
j
I
Ii
II
I
j
, enllrt ancl ANocJatt" II'lG.
I '
1
;;f
f
f
f
f
I
\-f-
p... 2 p/'If"'''". 12~
.
.
.:
SEP 29 '99 08:51AM EHLERS & ASSOCIATES
P.2/8
...... ..~:.... ':""'.--=;".:.~ .........,
l~;....'
A Ehlers and Associates
W Tax Increment Financing District Overview
City of Monticello .. T~x Increment Fina~cing District No. 1..26
The following sU,mmary con~ins an overview of the basic elements of the Tax Increment Financing Plan for
TIF District No. .1-26. More detailed information on each of these topics can be found in the complete TIF
Plan. .
Proposed actioll:
Dev~lopment District:
. .
Type of TIP District:
Parcel Numbers
Proposed Deve~opment !!nd.
Agreement: I
Maximum duration:
. I \ ..
I .
Estimated annual tax increnlent:
Prowsed uses:..
: :
. '
Form of financing:
, ,: ~ . ~
i
I I I '"
Adminiliitrative fee:
.,
Establishment of Tax Increment Financing District No. 1-26 and
adoption of a Tax Increment Financing Plan.
Adoption of the Modified Redevelopment Plan for the Central
Monticello Redevelopment Project No.1.
An Economic Development District
A portion of 115-011-000-171
Facilitate. the construction of an approximately 53,000 sf.
manufacturing facility to be constructed in two phases in the City of
Monticello. The project is to be occopied by Twin City Die Castings.
The duration of District No. 1-26 will be 9 years from the date of
receipt oflhe first increment or 11 years from the date of approval of
the Plan. whichever is less. The date of receipt of the first tax
increment will be approximately 2002. Thus, it is estimated that
District No. 1-26. including any modifications of the Plan for
subscqucllt phases or other changes, would terminate afler 2010, or
when the Plan is satisfied. If increment is received in 2001 due to
inflation, the term of the District will be 2009.
$42.126 (upon completion of the second phase)
The 'fIF Plan contains the following budget:
Land Acquisition. . . . . . . . . . . . . .. . . -- . .. $210,000
Site Improvements. . . . . . . . . . . . . . . . . . . . . .. 15,000
Public Utilities. . . . . . . . . . . . . . . . . . . . . . . . .. 40,000
Interest ....... . . . . . . . . . . . . . . . . . . . . . . .. 190,000
Administrative Costs (up to 10%) ......... .. 45.000
TOTAL ............................. 5500,000
Pay-as~you-go note. for all except utilities, which may be an interfund
loan.
Up to 10% of annual increment. if costs are justified.
'lG
SEP29 '99 ,08:S1AM EHLERS 8. ASSOCIATES
1
P.3/8
.
TIF District Overview
LGA/HACA penalty
Local contribution: '
The City and HRA elect to make a qualifying local contribution. The local
contribution for a economic development district is equivalent to 10% of the tax
increment revenue. This is expected to be paid through II state grant/loan or city
waiver of utility fees. '
Wage and Job Goals:
3 Year Activity Rule
(~~6p. 176 S~b4.. 1 a)
j
4 Year Activity Rule
(S 469.176 Subd 6)
.
50 jobs at $10 per hour or more.
At least one of the following aetivities must take place in the District within 3 years
from the date of certification:
o bonds have been issued
o the authority has acquired property within the district
C the authority has constructed or caused to be constrUcted public improvements
within the district
The estimated date whereby this activity must take place is October, 2002.
After four years from the date of certification of the District one of the following
activities Inuit have been commenced on each parcel in the District:
o demolition
o rehabilitation
o renovation
c other site preparation (not including utility services such as sewer and water)
Jf the activity has not been started by the approximately October, 2003, no
additional tax increment may be taken from that parcel until the commencement of
a qualitying activity,
Within 5 years of certification revenues derived from tax increments must be
expended or obligated to be expended. Tax increments are considered to have been
expended on an activity within the District if one of the following occurs:
o the revenues are actually paid to a third party with respect to the activity
o bonds, the proceeds of which must be used to finance the activity, are issued and
sold t~ a third party, the revenues are spentto repay the bonds, and the proceeds
of the bonds either are reasonably expected to be spent before the end of the later
of (i) the five year period, or (ii) a reasonable temporary period within the
meaning of the use ot'thatterm under ~. 148(c)( 1) of the Internal Revenue Code,
or are deposited in a reasonably required reserve or replacement fund
C binding contracts with a third party are entered into for performance of the
activity and the revenues are spent under the contractual obligation
o costs with respectto the activity are paid and the revenues afe spent to reimburse
a pay for payment of the costs, including interest on unreimbursed costs.
Any obligations in the Tax Increment District made after approximately October,
2004. will not be eligible for repayment from tax increments.
I
: The previous summary contains an overview of the basic elements of the proposed Tax Increment Financing Plan
1 ~or 'fa?, lncreme~~ ~inancing Di~trict No. 1-26. More detailed infonnation on each of these topics can be found
. m the complotc 111" Plan.
! ,t I , ~ I .. . f '
5 Year Rule
(~. 469.1763 Subd 3)
.'
- : I I I, !
. ,
1
i I ( PaJe 2
i ( .
I
I ' ,
: " ,
; i, I i tt
I I '1
\ (
.
.
.)
SEP 29 '99 08:52AM EHLERS & ASSOCIATES
P.4/8
TIF DistriCt Overview
The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan for District
No. 17~6 as required p~~ua~t r.;> M.S., Section 469. J7S, Subd. 3 are as foHows:
1. Finding that the District No. 1-26 is an economic development district as defined in MS., Section 469.174,
Subd /2.
Tax Increment Financing District No. 1-26 is a contiguous geographic area within the City's Central
Monticello Redevelopment Project No. I, delineated in the Plan, for the purpose of financing economic
development in the City through the use of tax increment. District No. 1-26 consists of a portion of Central
Monticello Redevelopment Project No. I not meeting requirements for othertypes of tax increment financing
districts, which is in the public interest because it wiH facilitate construction of an approximately 53,000 sf.
manufacturing facility to be constructed in two phases which will discourage commerce, industry, or
manufacturing from moving their operations to another state or municipality; it will increase employment in
the state. and preserve and enhance the tax base of the state.
2. Finding that the pl'oposi!d di!velopment, in the opinion of Ihi! City Council, would not reasonably be expected
10 occur solely through private investment within the reasonably foreseeable future and that the increased
market value of the site that could reasonably be expected to occur without tM use o/tax incrernentfinancing
'Would be less than the increa:re in the market value estimated to resultfrom thft proposed development after
subtracting the present value qf the projected tax increments for the maximum duration of District No. 1 ~26
permiued by the Flan.
The proposed development, in the opinion of the City, would not reasonably be expected to occur solely
,hroughprtvate Investment wi/hin the reasonablyfore.'ieeahlefulure: This finding is supported by the fact that
th~ deveJopment proposed in this plan is a manufacturing that meets the City's objectives for economic
development. The cost ot'land acquisition, site impro,:ements and utilities makes development of the facility
infeasible without City assistance. The developer was asked for and provided a letter and a proforma as
justification that the developer would not have gone forward without tax increment assistance ( see attachment
in Appendix F),
The increa~.ed market value of the site thai could reasonable be expected to occur without the use of tax
illcremenlfinancing would be less than ,he increa~'e in market value estimated to 7'esultfrom the proposed
development after suhtracting ,he pre~'ent value a/the projected tax increments for the maximum duration of
the I1F District permilled by the Plan: The City supported this finding on the grounds that the cost of land
acquisition, site improvements and utilities add to the total development cost. Historically. site development
costs in this area have made development infeasible without tax increment assistance. Therefore. the City
reasonably determines that I}O other development of any kind is anticipated On this site without substantially
similar assistance being provided to the development. Accordingly, the increased market value anticipated
without tax increment assistance is $0.
A comparative analysis of estimated market values both with and without establishment of Tax Increment
Financing District No. 1.26 and the use of tax increments has been performed as described above. If aU
development which is proposed to be assisted with tax increment were to occur in District No. 1-26. the total
increase in market value would be up to $971,003. The present value of tax increments from District No.
\ ;
Pace 3
\ :
r]r-
, .
\ j
I .
\ :
.
SEP 29 '99 08:52AM EHLERS & RSSOCIRTES
P.5/8
llF Disaict Overview
1~26 is estimated to be $201,992. It is the Council's finding that no development with a market value of
greater than $769,010 would OCCLlr without tax. inc;;rement assistance in this district within 9 years. This
finding is based upon evidence from general past 'experience with the high cost of acquisition · site
improvements and publil; utilities in the general area of District No. 1-26 (see Cashflow in ~ppendix D).
3. Finding thai the Tax Increment Financing Planfor District No. 1-26 conforms to tM general plan for the
development or redevelopment of the municipality as a whole.
The Plan was reviewed by the Planning Commission on October S, 1999. The Planning Commission found
that the Plan conforms to the geqeral development plan of the City.
I i
4. Finding that the Tax Increment Financing Plan for District No. 1..26 will afford maximum opportunity,
consistent with tM .~ound n(leds of the City as a whole, for the development of Central Monticello
Redevelopm~nt ProjeCT No. .1 by private enterprise.
, .
The project to be assisted by District No. 1-26 will result in increased employment in the City and the State
ofMinncsota, increased taJr. base, of the State, and add a high quality development to the City.
. : I :' !
,
. ; .'
\
1 I
I
.;
I '
Pace 4
"
VlJ
;;: "f
.
,; I
;' ,
"!" ~
.
i:
I !
.!
i
SEPj29 '99 J0S:S2AM EHLERS & ASSOCIATES
;
I'
i ~
,
I
TlF District Overview
,
.,
';
I
;
)
BOUNDARY MAPS OF CENTRAL MONTICELLO REDEVELOPMENT PROJECT NO. 1 AND
j i TAX INCREMENT FINANCING DISTRICT NO. 1-26
I
I
..
,
.
.
Page 5
P.6/S
11<
..~r.,t..'!,,,,,(....,
,", w/
,.-
.
C/J
't r I
~ i
p ~
j ;i!~
J CJ,~
, -:t-;
t; \)0
,." ~ c
"" .- 0
1 ==
!(- ~
o ti
". u.. 111 .9l.
... ee
,; cae.
g z~
UJ_
&l1::
;1
=' :':0
m'~
i
111
E
:;:
~
.a
.1
~
I
w
.
-
C
111
c:
co
E
111
Q.
-
li
E
~
0-
~
-
c:
~
8
C5.~
CU,!
~....
ii:~ ~
l -
..a
e
..,~.9 ~
11)
CD
... ~
';leD ~
::JB j
11)
'i! tn
III VI l!
! 11)
~ - -. ~ ~
GJ
a:
as
u ~
~~ ~
III In
I~ :1:.&
r--.
5 ~ I~
I; c -
J CD! ""
r:;. 5..5 CD
C2
. ~
ca~ tI\
~ >0
_t! ii
~i -'"
~q) t
-€,. l.l
:fQ
cu ~ ~ V9 ~ lr. 0 \.n ~ ~ ~ ~ C-
.2 Q
co: ~ V\ <"1. 1..r; ~
>11 In ~ ~ to ~
>'1 ~ ~ -....s ~ T'
3=
~c!I
"T.:l\i1
.!II ~ c Cl ~ [.Ii \n S~
(0 ":) () rf'J ca
11) .
co III ~ "~ 114 q <i \i1 - (300
c::c .n (Yj ..
~c! ~ ~ ~ t' f'/1 C"'; :::2 - 11)0
- N
i~ '- - - - - ..0
-.... S
.
ID
lei ,g
.a
]I
,i:t; ~
- ~ ~ \() ~ r-b
<< '0 trt 10 ~ - ~ ti -
~ ,.1
I~ ~ -
~ \,.
-=... ~ 'u ~~
c8 ~ ~ i II) ~
~~ J 2i ~ ~ cr-
.. ~
~ 1 ~
l~ ~ ~ i i~
F ~ -j + ~
z 0 ~ "':3. e ~ :'Q -j
~ :ii r;
\lJ ~ . ~ E
.; ~
~ I- e:: ~ ~
~
~ ;1
5 ~ c .
t'- .~ J!'~ I
~ '0 Ie
~ dl!QJas
Co: C 11) ::i
lI) ....:;
. ~ isi
z.8 SOl(,,)
19 ~ ,~ =
-<Ii -=j
e~ :~p
cao J:lcu2-
!!!3 -0.=
::) - ~ ;:I
,g 8 =.g8
Qi J!!'i=
!.! 'i!~
~! j,~
~:i "! ~=
5jE ,=:==
~n ~~.~
Q.1i: 3lD"l:;
! 1123 1lI 1II'"
I ~.~jt~
~it!ffq;d
If~];l
:!"':!:=~s
-J!:tg;o
,aylijCOo",
-E.~ -;. a:c ~
'I;; -= III c:
;II . 't:l o.~'-
c::BsE~:!
III >l'Il g-Qi
CiS"C ~i6
~ei]lllll!!
i=5.51<8""
lP ~ a ~LIl ,$
e- G.l =:....
_s=eCD!
M'~~~a-=
l1i e -= ~
;=Q.~Q
C"Cc.o
9i"i C:~=
" ::lC=-
= l.I..-
S ~ -~ ~
o-a m>flJ
ti <<i~
II) 112 t:. c
2;:1 .
. -.8.S
'-g ~!5'ii
- csc:
_ I(,l 0>
~::l lD_"e
~Cl ~=O>
~-;; ~~~
'5 E ~~-5
0..= =ca)C
CIl =' 0>
· i '!.2~
=.uQ,
~ ~ G:l
8 g,- ~
-::0. ;ElD,D
~ ~5ca
.2 si~
~ .s i"l:;
~ ~;:o
~ c. ~
, ~
~
\D
i
o
~
w
z
<
:5
cr.
w
c.
-
l
e
u
Gl
c:I
~
en
-s
-,
ZOO 'd
OSZS H9 1 S9: 1J-L
SnNI-LSV~ JIG ^-LI~ NIMl
!i
~
u
:i
"C
i
0>
S
..!!Z
c
C
:llII
co
E
s
,S:
i
~
.2
c.
5
0>
.=:
li~
==~
c ~-
=:e33
~ flJ a::
'02;;
III 0
(,,) ~
"1 L-
90: 01 (I~d) 00 .01- 'dJS
.
.
.
HRA Agenda - 10/6/99
8.
Consideration to hear a presentation bv Brad Johnson relative to the economics for
redevelopment of the commercial site located at West 7 Street and Locust Street.
A. Reference and Background:
Brad Johnson, Lotus Realty Services, requested to be on the HRA agenda to discuss the
economics for redevelopment of the commercial site located at West 7 Street and Locust
Street. This parcel is vacant and is located in the CCD (Central Community District) and
within Redevelopment TIF District No. 1-22. Mr. Johnson may request use ofTIF to
assistance with development of the parcel.
Within this large redevelopment district, Elhers and Bubul have suggested the HRA look
and evaluate each proposed project. Remember, at least 90% percent of the increment
must be used to finance the costs of correcting conditions that allow designation of
redevelopment districts (M.S. Section 469.176, Subd. 4(j).)
B. Supporting Data:
Map identifying parcel.
1
~.
~~
f Monticello
City 0
Iy/v
~::: -- /2
--
~
nt Financing
Tax Incre~e - 1-22
DistrIct No.
Ii>
---"~~
-, :.::;,~~
-,
~
!Jj,-
$~ ~
'".. '~,
'.
t. .."ot\
h .\0 \) \
oA
s
..
V 5 1/
;;
.
.
.
lIRA Agenda - 10/6/99
9.
Consideration to review and ratify the Notice to Terminate the House Lease at 3 Walnut
Street.
A. Reference and Backl!fOund:
Attached is a copy of the letter mailed Tammy Hacker, September 17, giving 30-day
notice to terminate the house lease located at 3 Walnut Street. The past amount due was
$900. On September 20, the lIRA received $170.
As of October 1, 1999, the amount of rent due is:
Remaining August rent
August late fee
September rent
September late fee
October rent
Total
$ 80.00
$ 50.00
$ 550.00
$ 50.00
$ 550.00
$1,280.00
F or your information, City Utility bills past due:
First quarter $71.38 plus interest
Second quarter $77.60
As per the letter, the tenant was advised of the October 6 lIRA meeting. I did talk to
Tammy's mother, Erika, on September 24 and informed her that Tammy was welcome to
attend the lIRA meeting.
B. Alternative Action:
1. A motion to ratify the Notice to Terminate the House Lease for 3 Walnut Street
with effective date to vacate the property no later than October 31, 1999.
2. A motion to not ratify the Notice to Terminate the House Lease for 3 Walnut
Street subject to proposed payment schedule.
3. A motion of no action necessary as received rent payment in-full.
4. A motion totableJUtY action.
1
.
HRA Agenda - 10/6/99
c.
Recommendation.
Tammy has worked very hard. However unless a payment has been received, the
recommendation is for Alternative NO.1.
D. Supporting Data:
Copy of September 17, 1999 letter.
.
.
2
l~)
September 17, 1999
--
MONTICELLO
Tammy Hacker
3 Walnut Street
Monticello, MN 55362
Re: Thirty-day notice to terminate House Lease at 3 Walnut Street.
Dear Tammy:
The Housing and Redevelopment Authority in and for the City of Monticello (the "landlord") hereby gives
Tammy Hacker (the "tenant''), a thirty-day (30~day) notice to terminate the House Lease for 3 Walnut
Street.
.
Unless the HRA receives payment-in-full for the remaining balance due in the amount of $250 for the
August rent plus the $50 August late fee and the balance due in the amount of $550 for the September rent
plus the $50 September late fee by October 1, 1999, the tenant is hereby given notice to vacate the property
by no later than October 31, 1999.
The total amount past due as of September 15, 1999, is $900. Please remit the total amount past due by
October 1, 1999, in order to avoid termination of the House Lease for 3 Walnut Street.
Additionally, Tammy, it is noted a "reminder with penahy" in the amount of $77.60 for 3 Walnut Street
relative to the City utility bill was mailed to the tenant.
For your information the next scheduled HRA meeting is Wednesday, October 6, 1999, 7:00 p.m., City
Hall. Should you have any questions, please do not hesitate to call me at 271-3208.
Sincerely,
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO, MINNESOTA
a~\(~G~~
Ollie Koropchak
Executive Director
.
c:
File
Rick W olfst.eller, City ~dministrator
L1 A
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
~
10.
~
HRA Agenda - 10/6/99
Consideration to review the appraisal for 1 Locust Street and to determine a
recommended purchase price/option offer for the City Council to consider funding.
A. Reference and Background:
At the September HRA meeting, the commissioners authorized an appraisal of the 1
Locust Street property. The Executive Director contracted with Rod Dragsten, Heartland
Appraisal, for completion ofthe appraisal by October 1. A copy ofthe completed
appraisal is attached. Remember, an appraisal of the HRA by law is not public information
for all intent purposes unless a) there is an agreed exchange of appraisals, b) a purchase
agreement has been executed, or c) submitted as part of a court hearing process.
Commissioner Frie and the Executive Director met the property owner on September 24
to view the exterior and interior of the property. Frie will present his observations at the
HRA meeting. The owner was advised of the planned process and agreed not to lease the
property or place on the open market until after the Council meeting of October 11.
The parcel is located within Redevelopment District No. 1-22 and within the North
Anchor boundaries; however, the parcel was in the long-term designation area of the
North Anchor. This property is one identified by some neighbors as a concern.
First, the HR.A needs to review and discuss the appraisal and process.
Secondly, determine future use ofbuilding(s): rent, relocate, or demolish.
Thirdly, determine a recommended purchase price/option offer.
a) Out-right purchase.
b) Right of first refusal.
c) Contract for Deed.
d) Other.
Fourth, recommend the City Council consider funding the acquisition.
Fifth, submit offer to owners.
B. Alternative Action:
1. A motion to recommend a purchase price/offer option of for
the property located at 1 Locust Street and to request the City Council consider
funding.
2. A motion of no interest to purchase the property located at 1 Locust Street.
3. A motion to table any action.
1
HRA Agenda - 10/6/99
C. Recommendation:
At time of agenda preparation, the appraisal was not received. No recommendation at
this time.
D. Supporting Data:
Appraisal and HRA agenda information of September 8, 1999.
•
a~
~~
_ •
.
.
.
(jo)
HRA Agenda - 9/8/99
7.
Consideration to hear Council inout relatimz to acquisition of the propertv located at 1
Locust Street and authorization to solicit an aooraisal.
A. Reference and back2found:
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 infonnational 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.
lllz 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. ~ <t e .00 '0
.40,000
1
ID 14
'" B.
VQ' CD
<J"
G.
2.
BRA Agenda - 9/8/99
Alternative Action:
A motion to authorize an appraisal for the property located at 1 Locust Street.
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 BRA meeting.
D. Supporting Data:
.
t ,
Map and copy of informational item to Council.
\ a..~ct.~C\.....o-~
~~ - \d""
C,
~ \?J'-~~ r ~ ·
~iJ ~. ~ ~
'Y ~ ~ n~
~ ~d ",:/0
,.
')..
"'>:J
r;\J
,I"
~.
o
c..1 f
/00
~~
{
.
I
2
JD 6
.
.
.
11.
BRA Agenda - 10//6/99
Consideration to authorize emolovinl! an attorney relative to TIF District No. 1-21.
A. Reference and Backl!round:
Checking with the Treasurer's Office of Wright County on October 1, 1999; the property
taxes for the first half of 1999 remain unpaid. As of October 1, the amount of the
delinquent taxes is $5,288 and the amount of the penalty is $634.56.
Mr. Eric Bondhus has been invited to the BRA meeting to advise the BRA of the
company's intent or an explanation.
Steve Bubul, BRA Attorney, makes these points:
a) The letters are fine and it's good for the BRA to give a strong message.
b) If the BRA authorizes employing an attorney, they must carry through.
Based on my most recent conversation with Mr. Bubul, assuming the delinquent taxes and
penalty are not paid by October 6, and receiving no reasonable explanation by the
Developer; Mr. Bubul suggests the BRA give the Developer one more chance and extend
the authorization of employing an attorney until October 16, 1999. The reason being the
October 6 BRA meeting so close to the October 15 due date for collection of second half
of 1999 taxes. The BRA would then proceed to file a claim for collection of the payments
due the first and second half of 1999.
B. Alternative Action:
1. A motion to authorize employing the BRA Attorney to file a claim relative to
default of the Contract for Private Redevelopment between the BRA and T. J.
Martin, Inc.
2. A motion to authorize employing the BRA Attorney on October 16, 1999, to file a
claim relative to default of the Contract for Private Redevelopment between the
BRA and T. J. Martin, Inc. subject to non-payment of delinquent taxes as of
October 15, 1999.
3. A motion to deny authorizing the employment of the BRA Attorney subject to
other arrangements between the BRA and T. J. Martin, Inc.
4. A motion of no interest to employ the BRA Attorney relative to default of the
contract.
5. A motion to table any action.
.
HRA Agenda - 10//6/99
6.
No action necessary, taxes paid in-full.
c.
Recommendation:
Based on the conversation with Attorney Bubul, the recommendation is Alternative No.2
unless the Developer brings forth an intent or explanation acceptable to the HRA or
delinquent taxes have been paid in-full.
D. Supporting Data:
August and September letters.
.
.
2
"
.( , ", ,
~J
.
.
September 17, 1999
0\)
--
MONTICELLO
Eric G. Bondhus, Vice President
T. J. Martin, Inc.
1347 Dundas Circle
Monticello, MN 55362
Re: Notice of default relative to the Contract for Private Development by and between T. J.
Martin, Inc. and the Housing and Redevelopment Authority in and for the City of
Monticello dated April 1, 1997.
Dear Eric:
In a letter dated August 2, 1999, the HRA noted T. J. Martin, Inc. was delinquent on the property
tax payment for the first half of 1999 for the tax year until May 17, 1999, noted a 10-day notice to
pay the tax increment deficiency, and further noted if the taxes were not promptly paid, the HRA
retained the right to file an action in order to collect the delinquent taxes directly from T. J.
Martin, Inc.
In checking with the Wright County Treasurer's Office on September 17, 1999~ the first half
property taxes for 1999 remain unpaid for the property described as Lot 1, Block 1, Oakwood
Industrial Park, Second Addition, City of Monticello, PID# 155-060-001010. The amount ofthe
first half taxes is $5,288 and the penalty as of September 17, 1999, is $581.68. Also, the tax
increment deficiency has not been paid to the Office of the Housing and Redevelopment
Authority.
EXCERPT FROM THE CONTRACT
ARTICLE II, Representations and Warranties, Section 2.2., Reoresentations and Warranties bv
the Deve1ooer. (g) Whenever any Event of Default occurs and if the Authority shall employ
attorneys or incur other expenses for the collection of payments due or to become due or for the
enforcement of performance or observance of any obligation or agreement on the part of the
Developer under this Agreement, and the Authority prevails in such action, the Developer agrees
that it shall, within ten days of written demand by the Authority, pay to the Authority the
reasonable fees of such attorneys and such other expenses so incurred by the Authority.
. . life
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
.
.
.
Mr. Bondhus
September 17, 1999
Page 2
At the regular meeting of the Housing and Redevelopment Authority scheduled for Wednesday,
October 6, 1999, 7:00 p.m., City Hall, 250 East Broadway, Monticello, MN, the commissioners
shall consider employing an attorney to enforce the said Contract unless the property taxes,
penalty, and tax increment deficiency are paid-in-full.
Should you have any questions, please call me at 612-271-3208.
Sincerely,
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO, MINNESOTA
o~ \~(j\D~J2~
Ollie Koropchak
Executive Director
c:
Chad Vitzthum, Marquette Bank
Steve Bubul, HRA Attorney, Kennedy & Graven
Doug Gruber, Wright County Auditor
Rick Wolfsteller, City Administrator
TIF District No. 1-21 File
) (13
August 2, 1999
MONTICELLO
Mr. Eric G. Bondhus, Vice President
T. 1. Martin, Inc.
1347 Dundas Circle
Monticello, M:N" 55362
Re: Contract for Private Development by and between T. 1. Martin, Inc. and the Housing and
Redevelopment in and for the City of Monticello dated April 1, 1997.
Dear Eric:
.
Upon the Housing and Redevelopment Authority of the City of Monticello receiving payment
from the Wright County Auditor's Office for tax increment collected the first half of 1999 for the
tax year until May 17, 1999; it was noted T. 1. Martin, Inc. was delinquent on their tax payment.
Pursuant to ARTICLE VI, Tax Increment: Taxes, Section 6.1. Ri2ht to Collect Delinquent Taxes.
of the Contract (Attachment): The Developer acknowledged and understood that the tax
increment was intended to pay expenses of the Authority, agreed to pay real estate taxes,
recognized this created a contractual right for the Authority to sue the Developer to collect
delinquent real estate taxes and any penalty or interest and recover all entitled Authority costs.
Please consider this a notice by the Authority to T. 1. Martin, Inc. to remit to the County the
amount of the delinquent taxes plus penalty or interest. Please promptly notify me when that
payment has been made. If the taxes are not promptly paid, the BRA retains the right to file an
action in order to collect the delinquent taxes directly from you.
Secondly, the Contract continues Section 6.3. Tax Increment Deficiencies. (Attachment): If on
any Payment date the amount of Available Tax Increment is insufficient for the Authority to
recover the Retention it is 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 of the Retention that the Authority was entitled to recover out of Available Tax
Increment pursuant to the Payment Table and the amount it actually recovered. ...........................
. If the Developer had paid the real estate taxes on a promptly and timely basis, the deficiency
between the Available Tax Increment for the first half of 1999 and the Retention Amount due
II C-
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
.
.
.
:Mr. Bondhus
August 2, 1999
Page 2
August I, 1999, is $1,491. Please consider this letter, the 10-day written notice to pay the
deficiency.
Should you have any questions, please do not hesitate to call me at 271-3208.
Sincerely,
HOUSING AND REDEVELOPMENT AUTHORlTY
IN AND FOR TIfE CITY OF MONTICELLO
~ ~k "'~ 6\- tj ~-<l~
Ollie Koropchak
Executive Director
Attachment
c:
HRA Attorney Steve Bubul
Wright County Auditor Doug Gruber
Mayor Roger Belsaas
TIP District 1-21 File
!I D
.
.
.
ARTICLE VI
Tax Increment; Taxes
Section 6.1. Right to Collect Delinquent Taxes. The Developer acknowledges that the
Authority is providing substantial aid and assistance in furtherance of the development. The
Developer understands that the tax increment intended to pay expenses of the Authority and the
Developer are derived from real estate taxes on the Development Property, which taxes must be
promptly and timely paid. To that end, the Developer agrees for itself, its successors and assigns,
in addition to the obligation pursuant to statute to pay real estate taxes, that it is also obligated
by reason of this Agreement to pay before delinquency all real estate taxes assessed against the
Development Property and the Minimum Improvements. The Developer acknowledges that this
obligation creates a contractual right on behalf of the Authority to sue the Developer or its
successors and assigns to collect delinquent real estate taxes and any penalty or interest thereon
and to pay over the same as a tax payment to the county auditor. In any such suit, the Authority
shall also be entitled to recover its costs, expenses and reasonable attorney fees.
Section 6.2. Reduction of Taxes. The Developer agrees that prior to the date the
Authority is fully reimbursed pursuant to Section 3.6 of this Agreement (I) it will not seek
administrative review or judicial review of the applicability of any tax statute determined by any
Tax Official to be applicable to the Minimum Improvements or the Developer or raise the
inapplicability of any such tax statute as a defense in any proceedings, including delinquent ta.x
proceedings; (2) it will not seek administrative review or judicial review of the constitutionality
of any tax statute determined by any Ta.x Official to be applicable to the Minimum Improvements
or the Developer or raise the unconstitutionality of any such tax statute as a defense in any
proceedings, including delinquent tax proceedings; (3) it will not cause a reduction in the
Minimum Market Value (as defined in Section 6.6) paid in respect of the Minimum
Improvements through: (A) willful destruction of the Minimum Improvements or any part thereof;
(8) willful refusal to reconstruct damaged or destroyed property pursuant to Section 5.1 of this
Agreement; (C) a request to the assessor to reduce the Minimum Market Value of all or any
portion of the Minimum Improvements; (D) a petition to the board of equalization of the County
to reduce the Minimum Market Value of all or any portion of the Development Property; (E) a
petition to the board of equalization of the State or the Commissioner of Revenue of the State
to reduce the Minimum Market Value of all or any portion of the Development Property; (F) an
action in a district court of the State or the tax court of the State pursuant to Minnesota Statutes,
Chapter 278, seeking a reduction in the Minimum Market Value of the Development Property;
(G) an application to the Commissioner of Revenue of the State requesting an abatement of real
property taxes pursuant to Minnesota Statutes, Chapter 270; (H) any other proceedings, whether
administrative, legal or equitable, with any administrative body within the County or the State
or with any court of the State or the federal government; or (I) a transfer of the Development
Property or Minimum Improvements, or any part thereof, to an entity exempt from the payment
of real property taxes under State law. The Developer shall not, prior to the date the Authority
is fully reimbursed pursuant to Section 3.6 of this Agreement, apply for a deferral of property
tax on the Development Property pursuant to Minnesota Statutes, Section 273.86. Nothing in this
Section 6.2 shall prohibit the Developer from challenging the assessor's valuation of the
Minimum Improvements to the extent that such valuation exceeds the Minimum Market Value.
DJClll1368
MN190-58
13
H~
.
Section 6.3. Tax Increment Deficiencies. If on any Payment Date the amount of
Available Tax Increment is insufficient for the Authority to recover the Retention it is 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 of the Retention that the
Authority was entitled to recover out of Available Tax Increment pursuant to the Payment Table
and the amount it actually recovered. 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 rights hereunder.
Section 6.4. Creation of TIF District. The Developer understands and acknowledges that
the financial assistance contemplated by this Agreement is contingent upon the creation of the
TlF District. The Authority shall use best efforts to create the TlF District, and a public hearing
on creation of the TIF District has been called by the City for November 12, 1996, but neither
the City nor the Authority warrants or guarantees that the TIF District will be created. If the TIF
District is not created by December 15, 1996, this Agreement shall be null and void and neither
party shall have any further liability hereunder.
Section 6.5. QualifviOlz Local Contribution. The Authority hereby covenants with the
City (such covenant not being for the benefit of or enforceable by Developer) that the Authority
shall allocate sufficient General Funds to the Retentions in accordance with Section 3.6(a) hereof,
it being the intention of the City and the Authority that such payment will constitute the
"qualifying local contribution" necessary to exempt the TIF District from local government
aidlhomestead and agricultural credit aid penalties pursuant to Minnesota Statutes, section
273.1399.
Section 6.6. Assessment AlZreement. (a) Upon or after Developer's acquisition of the
Development Property and before commencement of construction ofthe Minimum Improvements,
the Developer shall, with the Authority, execute an Assessment Agreement pursuant to Minnesota
Statutes, Section 469.177, subd. 8, specifying an assessor's minimwn market value (the
"Minimum Market Value") for the Development Property and the Minimum Improvements
constructed thereon. The amount of the Minimum Market Value shall be $270,000 as of January
2, 1998 notwithstanding the progress of construction of the Minimum Improvements by such
dates.
(b) The Assessment Agreement shall be substantially in the form attached hereto as
Exhibit D. 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.
.
.
0.10111368
MN190-S8
14
l\ (
.
.
.
12.
Consideration ot authorize payment of monthly HRA bills.
Recommendation to approve the monthly bills.
1
HRA Agenda - 10/6/99
.
Monticello EDA
Ollie Koropchak
P.O. Box 1147
Monticello, MN 55362w9245
Kennedy & Graven, Chartered
200 South Sixth Street
Suite 470
Minneapolis, MN 55402
(612) 337-9300
September 3, 1999
Statement No. 4061
Through August 31,1999
MN325-000~ .'0'"
Expenses
.
q)~
34.75
0.00
Total Current Billing: 34.75
I declare, under penalty of law, that this
account, claim or demand is just and correct
and that n rt of it has been paid.
.
.
Monticello EDA
Ollie Koropchak
P.O. Box 1147
Monticello, MN 55362-9245
Kennedy & Graven, Chartered
200 South Sixth Street
Suite 470
Minneapolis, MN 55402
(612) 337-9300
41-1225694
September 3, 1999
Invoice # 4061
MN325-00006 General
Through August 31,1999
For All Legal Services As Follows:
8/27/1999 SJB Review EDA Business Subsidies Policy.
.
.
Total Services:
Total Services and Disbursements :
Hours
0.25
Amount
34.75
34.75
34.75
.
Kennedy & Graven, Chartered
200 South Sixth Street
Suite 470
Minneapolis, MN 55402
(612) 337-9300
September 3, 1999
Statement No. 4063
City of Monticello
Ollie Koropchak
City Hall
P.O. Box 1147
Monticello, MN 55362-9245
Through August 31,1999
MN190-00041 RedevelopmenGener~0
MN190-00058 Economic Development TIF Lake Tool (TJ Martin)
MN190-00079 TIF 1-26 (Twin City Die Casting)
<:\":J,:~ \ - ?- \
\~ \ - ?-"-o
~ j;: '" \. - ").. '3
MN190-00080 Midwest Graphics Amendment
Expenses
.
q3/
Total Current Billing:
I declare, under penalty of law, that this
account, claim or demand is just and correct
and tha rt of it has been paid.
.
187.65
55.60
0.00
1,042.50
20.54
1,306.29
.
Kennedy & Graven, Chartered
200 South Sixth Street
Suite 470
Minneapolis, MN 55402
(612) 337-9300
41-1225694
September 3, 1999
Invoice # 4063
City of Monticello
Ollie Koropchak
City Hall
P.O. Box 1147
Monticello, MN 55362-9245
MN 190-00041 Redevelopme...r:<:.ne:';;<-)
Through August 31,1999 ',---= ~
For All Legal Services As Follows: Hours
8/6/1999 SJB Phone call with 0 Koropchak re business subsidy issues 0.30
8/10/1999 SJB Review business subsidy policies 0.30
8/11/1999
8/16/1999
SJB Phone call with 0 Koropchak re business subsidy policies 0.25
SJB Phone call with 0 Koropchak re housing subsidies 0.50
Total Services:
Amount
41.70
41.70
34.75
69.50
187.65
.
For All Disbursements As Follows:
Photocopies
Postage
Fax
Total Disbursements:
0.80
0.00
6.00
6.80
MN190-00058 Economic Development TIF Lake Tool (TJ Martin) <\;" ~ ~ \ - d-- \
Through August 31,1999
For All Legal Services As Follows: Hours Amount
8/2/1999 SJB Review draft default letter; fax to 0 Koropchak 0.40 55.60
Total Services:
55.60
MN190-00079 TIF 1-26 (Twin City Die Casting)
\~ \-'?..~
For All Disbursements As Follows:
.
Photocopies
Fax
4.00
3.00
.
Page: 2
Kennedy & Graven, Chartered
200 South Sixth Street
Suite 470
Minneapolis, MN 55402
City of Monticello
Ollie Koropchak
MN190-00079TIF 1.26 (Twin City Die Casting)
August 31. 1999
Total Disbursements:
'\~~
\- ? ::,
MN190-00080 Midwest Graphics Amendment
Through August 31. 1999
For All Legal Services As Follows:
8/4/1999 SJB Phone call with 0 Koropchak re contract amendment and
city loan; begin draft
8/6/1999
8/9/1999
8/31/1999
SJB Phone call with 0 Koropchak; draft contract amendment
SJB Finalize contract agreement; draft city loan documents
SJB Review Krantz letter re assignment.
.
Total Services:
For All Disbursements As Follows:
Fax
Postage
7.00
Hours Amount
1.30 180.70
4.00 556.00
2.00 278.00
0.20 27.80
1,042.50
3.00
3.74
6.74
Total Disbursements:
Total Services and Disbursements:
.
1,306.29
Monticello HRA
PO Box 1147
Monticello MN 55362-9245
.
September 10, 1999
MC100.28
TIF District No. 26
Invoice # 16467
Professional Services
8/4/99 MTR Tax increment run fo~ ~ \ \~::. ~
8/9/99 MTR Review business subsl y L \-.\.~'A ~-l
8/11/99 MTR Review policy for subsidy " .
8/20/99 RC Revise schedule - "\ ~ q.. L - ":;).. '4
Hours Amount
- 1.00 105.00
~.25 26.25
0.25 26.25
0.75 78.75
2.25 $236.25
$183.75
$420.00
Total Due This Month:
Previous Balance:
Total Balance Due:
.
PLEASE KEEP WHITE COpy FOR YOUR FILE AND REMIT PINK
.
.
EHLERS
& ASSOCIATES INC
3060 Centre Pointe Drive
Roseville, MN 55113-1105
651.697.8500
.
.
.
HRA Agenda - 10/6/99
13.
Consideration of the Executive Director's Report.
a)
b)
c)
EDA Meeting - Approved the $100,000 GMEF Loan for Twin City Die Castings
Company.
Prospect - A Prospect Team of Darrin Lahr, Shelley Johnson, Mayor Belsaas,
Kevin Doty, and Koropchak visited Systematic Refrigeration in Dayton on
September 28. The company is looking to construction a 60,000 sq ft building and
acquire 8.5 acres ofland. Looking at Albertville, Ramsey, and Monticello. Will
visit Monticello on Thursday, October 7. Looking at funding package, prefers up-
front TIF financing. Attached job and wage-goal levels and estimated project
costs.
Industrial land acquisition - Rick and Koropchak will meet with Chadwick relative
to continued discussion on potential to swap parcels. AM on the 6th of October.
Twin City Die Castings building and site plans perhaps submitted to City the
second week of October. State application perhaps submitted the second week of
October requesting $500,000. Strong likelihood the State will award and EDA
will retain all of the principal and interest payback for the GMEF. It appears
groundbreaking likely the middle of November. Copy of contract with Lenny
Kirchst who's preparing the State Grant application.
TIF District No. 1-15 - The delinquent taxes and penalty for Custom Canopy
(Birkelands) or TIF District No. 1-15 was paid in-full on September 28, 1999, per
the Treasurer's Office of Wright County. Amounts paid $8,051 and penalty
$885.61 for first half of 1999.
Midwest Graphics - An update will be given at the HRA meeting. At this point
still working on issues.
Copy of 1999 taxes for Hawkins house. Will be tax exempt starting 2000.
d)
e)
f)
g)
1
6125351484 OLSON COMPANY
540 P06
SEP 27 '99 13:34
lb)
.
CU.~Q-~N<\ \ ~
GO~OFBU~GASSlSTANCE
Please indicate number of employees at each level and indicate the corresponding benefit level.
Number of jobs created is over the first two years.
Job Creation Hourlv Waae Hourlv Value
~ ofVoluntarv
Benefits (8) ~
FuU.time Part.time a.....-,. (Excl. benefits)
,
C) --1- 5.5"0 Less than $7.00 ~~~
0 0 0 57.00 to $7.99 0
I 3 o,.Sa $8.00 to $9.99 2..8 )"
L( 3 1<'/'-( S10.00 to $11.99 3.3"
. /0 2 (2..-b't $12.00 to $13.99 3.8/
~
l fl(. ~c $14.00 to $15.99 '{.l~
lb 0 2 '-{. lb $16.00 and higher 7.23
"O'l fO
.
.
6125351484 OLSON COMPANY 540 P06 SEP 27 '99 13:34
LU(l..p'~~\ \ ~ '0
~~~
GOALS OF BUSINESS RECEIVING ASSISTANCE
Please indicate number of employees at each level and indicate the corresponding benefit level.
Number of jobs created is over the first two years.
Job Creation Hourlv WaRe Hourlv Value
Level of Voluntary
Benefits (8) ~
Full~time Part-time ~ (Exe!. benefits)
0 -L- 5.50 Less than $7.00 ~~~
0 0 0 $7.00 to $7.99 0'
I "2- CJ ~SO $8.00 to $9.99 ?-es-
l{ ~ 1l.I'1 $10.00 to $11.99 '3.3<(
. 10 2 I 2.. b tt $12.00 to 513.99 ).81
b 0 1Y..3C $14.00 to $15.99 4.2.'1
3 0 /1.3 q $16.00 and higher S.2..8
td-~ ~
.
6125351484 OLSON COMPANY
540 P07 SEP 27 '99 13:34
\?>'o
.
GOALSOFBUSmESSRECEnnNGASmSTANCE
(p ~VV\,("t..DJol..e~ ,<.e(\.- 't\\l..L\O~ \N SJ>.L.eS
Please indicate number of employees at each level and indicate the corresponding benefit level.
Number of jobs created is over the first two years.
:.
.
.
.
ESTIMATED PROJECT COSTS
FOR
CITY OF MONTICELLO
Real Estate
g 4'~52V
Land Acquisition - I 5 acres @ $.J;5.r8007acre
.3 70. t"C)O '""'::
,
? CJ -]L~ tJcrJ :=-
/sp 000. "'=-
, '(/ L ShO, 000 A ~
/1 ,
Building Construction - 6/J,fXXl..sf@37': D:::::/sf
Contingency & Soft Costs
TOTAL REAL ESTATE
LA /l:~ -
Total building square footage ~ f./LA..../
Total office square footage /?, 000 ....
Total manufacturing square footage ,3 ~ /27J - -
Total warehousing square footage /0, t:Jr5t::J ~
Total other
MachinerylEquipment
List Machine or Equipment
Cost
/J!l/f)tJ!5 ~G
)(IS~ ?;2()#U!l7(})/ OtJf/I.
9& 6tJc/ -=:-
.
-
0(/ tJc1? -
,
Contingency & Soft Costs
~~7J_ ttJo . ~
,
TOTAL MACHINERYIEQUIPMENT
\~b
.
A
,~
\:,Cs)')
l0'd 11:f101
PARK NATIONAL
BANK
September 10, 1999
via fax (612) 29564404
Ms. Ollie Koropchak
Economic Development Director
City of Monticello
250 East Broadway
Monticello, MN 55362
RE: l\1IF Application
Twin City Die Castings Company
Dear Ollie:
.
Pursuant to our earlier discussions, I have agreed to package the Minnesota
Investment Fund Application. on behalf of the City of Monticello. to assist in the
location and establishment of Twin City Die Castings Company. The fee to prepare
the application materials. including the application fonns pacl<:age. public hearing
materials, and follow-up clarification infonnation. is $3,000 plus actual costs of
mileage and postage,
The Minnesota Department of Trade and Economic Development has indicated that it
may choose to utilize Federal Funding to complete this transaction. With this in
mlnd, I will require participation and assistance from the City Engineer to complete
the Environmental Review Record that is associated with Federal Funding. Your
acknowledgement and acceptance of this agreement includes and ratifies this
arrangement.
If you have any questions please do not hesitate to call me at (612) 591-2786, We
appreciate the opportunity to serve you,
.
Acknowledged and Accepted by:
S?l~P~C\ .,y~
Economic Development Director
l0/t0'd
179L.C"t6S2:"t9
~N~g l~NOI1~N ~~~d
S17:9"t 666"t-0l-d3S
I
S353 WAYZATA BOUUVAItD . ST. lDtJIS P.\RX. MN ~5416 . (612) S44-03544
....
z
:J
o
~
w
8
u
~
w
:::
(f)
(f)
w
(f)
(f)
..,
...J
~ ..,
13
w
c..
(f)
.-.
.. g
~ ;
"-'
U) U) Uj Uj
U) t- => =>
:5 z: ...J ...J
Uj <I: ::;
0 :::; >
>- Uj tJ:i t-
t- f) Uj
r:c :.:: :.::
Uj r:c r:c rr:
0.. 0.. <I: <I: en
0 ~ :::; :::;
r:c C Uj
0.. ~ Uj ...J
. Uj t- al en
z: <I: ;:i
:::; ~
5i en
Uj
.....
V
iii
~
~
N
~
""
t~.
'n
I-
o
<::"..J
it)
CLi..
iC
~
UN
0'
i.
"'!"
i=
::l
<I ~
~
i- ....
20 '"
W...l I
1:...l N
u.W '00
OU M
I l-/ I()
WI- li1
>Z
WO
fJ:t: ~
U::Li..r-
0.0
06 ....-J
>-....-J
i.,)!- W
Z""'XU
....UOt-f
to &QI-
::JCI: Z
0000
ILi..t..X
\'3 ~
-. --',,--- -"-- .-- -._--
~
W
.J
I ~ I ,
-j ~ ~ I ~H 0
!Hi!f!j
fi~~ if g
D.:)j.la:ll .sli ><
"~i!!~ii~t~
~~~t:l!fcl~~
~~ 50~ i li:i ~ liffi
"'$"" 111"'5 .:ria..
l!05::2~s.s"lo
!~j~f~i1-!!
I~I~i!~:ii5
.suel-~JI'8~>
IE ~ ~ ~ g ! j I w-
1II!!la:"2 _III a:
::!:;cg-Wl::::; l ~
~gcD~~'8I~"~
g!!.~f!1 l~
C'.,;ca:i llJ
g~g;::)~lj~~
:ag>~O~~ us.
~"'_!Il>[~ ;a
-~= o..!. 0'"
~ ~ ~ ~ ~ ~ = ~
~ gJ
.l!! .-
i III .~
.5 ~
E _
i ~il.
S o.. li;(,j
ci3 g B~
.( = cj .(
!.t..
l-/
I-
= cj ci
~
w
::I
:l
w
:l
:B ~
UJ III S
c - U
'11 cD ~ w
i m ~ ~
.!l! ~ Co ~
C to Jl <
~ ~ ~ ~
i1 ~ - ....
al UJ I ~
e ~ i ~
8:jj-EO
~ )( ~ IE
.I!l "' .J
~ ~ 13 01{
- G) en I-
8 g- l3 0
~. Co iij ~
OJ u :)
~~c%2
('oJ
OJ
m
0
j ~
UJ
'6
b o.. g
~ 0
b J::
U u
<Jl
...: cD .,;
~
iil
'6
g>
~
OJ
.~
<Jl
.,.:
tIi .... .,;
<Ii
cD
c::i
'I""" ~ M ~
'J"
069€'(:99'006-~ S~t:lOJ SS3NIsna NVOW3NV
() i.j ~ i~
\....
~-
'- --' \.. 7' V
-' ~-
o
o
>-
o c..
-w 0
Ct-. 0
~:5; en
III ffi ~ iX: J'
t;xw . w
::I~Il.I!:!~
~a:CC a..
en::lQa: X
ffio~~ j:!
...I>a:u..
a:>ClIC: ~
O:G~ s
~5WIIl t
=>IIlW ll!
~u.....IW Ci"
u..-...Ien Is.:o:.
o..,ji ...1
lfis5 6'"
xu..> :>'.E
cz GI ..
1-- g ~
,=,.c;
e'S
.EO
~11
1:;;;:
~.s
e't!
!I
~!!
GIll!
....!!!
os
GI...
co
0"",
~j
~!
gs;
GI :e
.t~
:>,
~
::l
:f
.t:
c-
WW
1-0
enW
wa:
::I a:
0::1
wo
a:>
tnen
tn-
Wlil:
...1(.)
Zw
::I:J:
!zo
we
tn~
1--'
Il.W
-0
IUZ
(.)c
a!o
oa:
z::l
o
>
-=.or.-
810
~
d'
cr
I
C
-
I
~;\
~~
r.'
Jl::
.
I
::i
l-/
<<<
X
<r
I-
.00
ClW
I-IU::
--'-/
\....-