EDA Agenda Packet 11-10-2010EDA MEETING
Wednesday, November 10, 2010
6:00 p.m.
Mississippi - 505 Walnut Street, Monticello, MN
Commissioners: President Bill Demeules, Vice President Dan Frie, Treasurer Bill Tapper, Bill Fair, Tracy
Hinz, and Council members Tom Perrault and Brian Stumpf
Staff: Executive Director Megan Barnett
1. Call to Order
2. Approve Meeting Minutes:
a. October 13, 2010
3. Consideration of additional agenda items
4. Approval of EDA Invoices
5. Consideration of extending the Preliminary Development Agreement between the RDA
and Rocky Mountain Group
6. Consider request to amend GMEF 024 Loan Agreement between the Monticello EDA
and Tapper Holdings Inc. for GMEF Loan #024
7. Consideration of entering into a Listing Agreement with Wayne Elam of Commercial
Realty Solutions
8. Authorizing A $2,500 City Platinum Sponsor for the NAIFC Qualifying lee Fishing
Tournament to be held in Monticello in January 2011
9. Marketing Update
a. Conferences
b. Website
c. Concierge Team
10. Director Report
11. Adjournment
Economic Development Authority Minutes 10/13/10
ECONOMIC DEVELOPMENT AUTHORITY (EDA)
MEETING MINUTES
Wednesday, October 13, 2010 6:00 p.m.
Commissioners: President Bill Demeules, Treasurer Bill Tapper, Bill Fair, and Council members Tom
Perrault and Brian Stumpf
Commissioners Absent: Vice President Dan Frie, Tracy Hinz
Staff: Executive Director Megan Barnett
1. Call to Order
President Demeules called the meeting to order at 6:00 p.m.
2. Approve Meeting Minutes:
A. August 18, 2010
MOTION MADE BY FAIR TO APPROVE THE AUGUST 18, 2010 REGULAR EDA
MINUTES WITH A CORRECTION TO ITEM 8 NOTING THAT THE MOTION
CARRIED 6 -1 WITH PERRAULT OPPOSED. MOTION WAS SECONDED BY
PERRAULT. MOTION CARRIED 5 -0.
3. Consideration of additional agenda items:
Tapper asked to discuss the EDA role of participating in events and activities geared toward
promoting business for Monticello.
4. Approval of EDA Invoices
Stumpf asked when the McComb Group Embracing Downtown meetings would begin. Barnett
indicated that the first downtown stakeholder meeting would be held the following week and that
business and landowners would participate in completing a survey to outline the challenges and
opportunities in the downtown area.
Tapper asked how funds would be disbursed between EDA and the City budget to pay for the
McComb Group project. Barnett summarized that EDA funds would be utilized for 2010 and in
2011 a determined percentage would be applied between City and EDA funds.
Economic Development Authority Minutes 10/13/10
Perrault noted that the City portion for the project is part of the 2011 levy. Tapper also noted that
he had discussed the WSB bill with Barnett and found it to be appropriate.
MOTION WAS MADE BY TAPPER TO APPROVE THE INVOICES. MOTION WAS
SECONDED BY STUMPF WITH A COMMENT RELATED TO THE NEED FOR COUNCIL
RATIFICATION OF OUT -OF -STATE TRAVEL EXPENDITURES. MOTION CARRIED 5 -0.
Stumpf noted that the City Council had expressed concern that the EDA approved expenditure of
the staff marketing trip to the CoreNet Global conference should have also come before Council
for a vote because it involved out -of -state travel. Barnett pointed out that Council had been
provided a green sheet update summary documenting the cost, funding for, and value of the trip in
advance of the expenditure.
5. Presentation by the I -94 Corridor Coalition
Barnett reported that Kathy Poates from the I -94 Coalition was unable to attend the meeting due to
a family emergency. Tapper noted that Poates had previously presented to the IEDC and that the
general consensus at that meeting was strong support for the Coalition's continued efforts. He also
pointed out that there was nearly unanimous support for the importance of transportation as an
issue among those involved in the BR &E. Barnett indicated that funding for Coalition support
would be in the 2011 EDA budget.
Review proposed development plan modification for Landmark Square II, TIF District 1 -35
Barnett introduced this agenda item as property owner Barry Fluth was not present at the meeting.
She indicated that the City approved an 11,000 square foot commercial building development
known as Landmark II in 2005. However, due to the economy the project was never built. The
developer desires to develop the property, however lending institutions will not issue loans for
purely commercial projects. Mr. Fluth is now exploring higher end apartment complex. Barnett
pointed out that if the developer's construction numbers shift, the EDA could do a budget
amendment but, if there were a significant change to the plan a TIF amendment would be required.
There was some discussion about the question of ample parking. Planning Commissioner Rod
Dragsten was in attendance and cormnented briefly. The EDA generally stated they would support
the Planning Commission and City Council in a change in development plan.
Authorize demolition work to be completed for structures located on the property at 413 41h Street
Barnett surmnarized that an environmental study had detennined that there were no hazardous
materials on site. Staff contacted three contractors and received the lowest quote for demolition
from Carlson Construction of Buffalo in the amount of $5,600. There was some discussion about
the value of obtaining services from local businesses "within reason." There were also some
Economic Development Authority Minutes 10/13/10
questions about options for use and marketing the property which is zoned R -1 or single - family
residential.
MOTION WAS MADE BY PERRAULT TO AMEND THE MOTION FOR DEMOLITION
WORK AT 413 4TH STREET TO INCLUDE THE PROVISION THAT THE SELECTED
QUOTE INCLUDE THE ADDITION OF TOPSOIL AND SEEDING. MOTION WAS
SECONDED BY FAIR. MOTION CARRIED 5 -0.
MOTION WAS MADE BY FAIR TO APPROVE CARLSON CONSTRUCTION TO
COMPLETE DEMOLITION WORK AT 413 4' STREET PER SUBMITTED QUOTE WITH
THE AMENDMENT THAT THE CONTRACTOR ADD TOPSOIL AND SEEDING. MOTION
WAS SECONDED BY PERRAULT. MOTION CARRIED 5 -0.
8. Marketing Update (verbal)
A. Conferences
Barnett noted that she had attended the first of four of her National Development Council
(NDC) trainings which was required as part of her role as Economic Development Director
with the City.
She summarized her experience at the CoreNet Global conference by saying that she had
made many contacts from across the country through her participation in roundtables
which included end users, economic developers, manufacturers and general managers. She
indicated that she would be sending along City marketing materials to these contacts as a
follow up. She noted that the cost of the conference nearly covered the cost of a full year of
access to CoreNet membership benefits.
She pointed out that she'd been part of the Medical Manufacturing conference in
Minneapolis and that both the upcoming MNCAR and Life Science Alley conferences
were additional opportunities for networking.
B. Website
Barnett noted that the site selector website had been was launched and that she would
spend some time working to enhance it.
9. Director Report (verbal)
Barnett reported that the BR &E retreat was well attended and well received. She noted that
transportation was determined to be the number one priority as congestion on the freeway
significantly affects businesses. The group also stated that it is important to focus on the recreational
aspects of the river as well as the success of the downtown area. The study indicated that businesses
Economic Development Authority Minutes 10/13/10
would be interested in opportunities for roundtable meetings and site visits with the Mayor and
Council. Barnett pointed out that, although the City has knowledge of many useful resources for
business, it lacks a marketing and communications link and /or person to provide the business
community access to those resources. She indicated that it might be useful to establish an information
task force at some point to address this need. She noted that businesses would be invited to a meeting
in November to get an update as to the plan for implementing the BR &E findings.
Tapper stated that he thought that the study had indicated that businesses would like more of an
opportunity to network among themselves around particular topics. Barnett stated that she would get
clarification on that point.
There was some discussion about the value of marketing the community as a whole. Barlett pointed
out that six promotional videos had been created and would be utilized and distributed soon for that
purpose.
Tapper outlined the need for the EDA to be out in front of co- sponsoring and supporting events which
promote business for Monticello. There was discussion about an upcoming ice fishing tournament
which had been considering Monticello as a potential site. After some consideration it was
determined that it would be within the scope of the EDA to more actively seek out ways to support
opportunities to draw events to town.
10. Adjournment
MOTION WAS MADE BY TAPPER TO ADJOURN. MOTION WAS SECONDED BY
PERRAULT. MOTION CARRIED 5 -0.
The meeting adjourned at 6:50 p.m.
Recorder: Kerry T. Burn
Approved:
Attest:
Attest:
Bill Demeules, President
Megan Barnett, Executive Director
5. CONSIDERATION OF EXTENDING THE PRELIMINARY DEVELOPMENT
AGREEMENT BETWEEN THE MONTICELLO EDA AND ROCKY
MOUNTAIN GROUP LLC. (MB)
A. REFERENCE AND BACKGROUND:
As you may recall, the EDA approved entering into a Preliminary Development
Agreement with Dahlheimer Distribution (Rocky Mountain Group) at May EDA
meeting. The agreement stipulated the EDA would hold the property known as Outlot C
under contract with Rocky Mountain Group until October 31, 2010. Purchasing Outlot C
will allow Dahlheimer Distribution to expand their existing facility by approximately
50,000 - 60,000 square feet.
In order to complete the land sale transaction and desired expansion, Dahlheimer needs to
sell an existing building they own in the City of Ramsey. To date, this building has not
been sold. The Applicant continues to receive inquires from potential buyers, however to
date there is no signed purchase agreement. The applicant is requesting the EDA extend
the terms of the Preliminary Development Agreement until April 30, 2011.
B. STAFF RECOMMENDATION:
City Staff supports the requested extension. Staff continues to communicate with
Dahlheimer's regarding their progress in selling the building in Ramsey and desired
expansion timelines. Based on the reality of the economy, finding a tenant for the
building may take awhile. It is Staff's opinion we should continue to work with our
existing business to continue to help facilitate their ultimate goal of expanding in
Monticello. Furthermore, staff has not received a high volume of inquires that requires
this specific property to be sold at the immediate time.
C. ALTERNATIVE ACTIONS:
1. Motion to approve a six month extension to the Preliminary Development Agreement
between Rocky Mountain Group ( Dahlheimer) and the Monticello EDA.
2. Motion to deny entering into a 6 month extension to the Preliminary Development
Agreement between Rocky Mountain Group and the Monticello EDA.
3. Motion to table item for further research.
D. SUPPORTING DATA:
a. Letter from Luke Dahlheimer requesting extension
b. Proposed revised Preliminary Development Agreement
M/NNESOTA
October 29, 2010
Economic Development Authority
City of Monticello
505 Walnut St.
Monticello, MN 55362
Dear EDA,
Dahlheimer Beverage/Rocky Mtn Group entered into a Preliminary
Development Agreement with the EDA to purchase adjacent property to that
which is currently owned by Rocicy Mtn Group. That Preliminary
Development Agreement states that the contract will expire on October 31,
2010. At this time Dahlheimer Beverage/Rocky Mtn Group would like to
request the EDA consider an extension of the Development Agreement until
April 30, 2011. Our overall goal remains to purchase the property in order
to facilitate an expansion of our existing building at 3360 Chelsea Road
West. We are currently working on preliminary site plans and possible
timelines depending on the sale of a property in Ramsey, MN. If you would
like to discuss options going forward please contact me at 295 -3347. Thank
you for your consideration.
Sincerely,
Like Dahlheimer
General Manager
Dahlheimer Beverage, LLC
3360 Chelsea Road West e Box 336 e Monticello, MN 55362 e Telephone 763 - 295 -3347
MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
PRELIMINARY DEVELOPMENT AGREEMENT
(Monticello Business Center)
THIS AGREEMENT, dated this day of , 20_ by and between the
Monticello Economic Development Authority, a public body corporate and politic under the laws of
Minnesota ( "Authority ") and Rocky Mtn Group, LLC or its Assigns ( "Developer "):
WITNESSETH:
WHEREAS, the Authority owns certain property within the City of Monticello (the "City"),
which property is legally described in Exhibit A attached hereto ( "Property "); and
WHEREAS, the Developer has submitted a preliminary proposal (the "Proposal ") for the
acquisition and development of the Property (the "Development "), which proposal is attached hereto
as Exhibit B; and
WHEREAS, the Developer has requested the Authority to explore the use of certain public
assistance to assist with the Development; and
WHEREAS, the Authority has determined that it is in the Authority's best interest that the
Developer be designated sole developer of the Property during the term of this Agreement; and
WHEREAS, the Authority and the Developer are willing and desirous to undertake the
Development if (i) a satisfactory agreement can be reached regarding the Authority's commitment
for public costs necessary for the Development; (ii) satisfactory mortgage and equity financing, or
adequate cash resources for the Development can be secured by the Developer; and (iii) the
economic feasibility and soundness of the Development and other necessary preconditions have
been determined to the satisfaction of the parties; and
WHEREAS, the Authority is willing to evaluate the Development and work toward all
necessary agreements with the Developer if the Developer agrees to make the nonrefundable
deposit described herein, which is intended, in part, to reimburse the Authority for its costs if the
Development is abandoned by Developer or necessary agreements are not reached under the terms
of this Agreement.
NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and
obligations set forth herein, the parties agree as follows:
1. Negotiations between the parties shall proceed in an attempt to formulate a definitive
purchase and development contract ( "Contract ") based on the following:
(a) the Developer's Proposal, which shows the scope of the proposed
Development in its latest form as of the date of this Agreement, together with any changes
or modifications required by the Authority;
(b) a mutually satisfactory Contract to be negotiated and agreed upon in
367304v4 SJB MN190 -135
accordance with negotiations contemplated by this Agreement;
(c) such documentation regarding economic feasibility of the Project as the
Authority may wish to undertake during the term of this Agreement; and
(d) other terms and conditions of this Agreement.
2. It is the intention of the parties that this Agreement: (a) documents the present
understanding and commitments of the parties; and (b) will lead to negotiation and execution of a
mutually satisfactory Contract for the Development prior to the termination date of this Agreement.
The Contract (together with any other agreements entered into between the parties hereto
contemporaneously therewith) when executed, will supersede all obligations of the parties
hereunder.
3. During the term of this Agreement, the Developer shall:
(a) Submit to the Authority a design proposal to be approved by the Authority
showing the location, size, and nature of the proposed Development, including floor layouts,
renderings, elevations, and other graphic or written explanations of the Development. The
design proposal shall be accompanied by a proposed schedule for the starting and
completion of all phases of Development.
(b) Submit an over -all cost estimate for the design and construction of the
Development.
(c) Submit a time schedule for all phases of the Development.
(d) Undertake and obtain such other preliminary economic feasibility studies,
income and expense projections, and such other economic information as the Developer
may desire to further confirm the economic feasibility and soundness of the Development.
(e) Submit to the Authority the Developer's financing plan showing that the
proposed Development is financially feasible, and, to the extent Developer seeks public
financial assistance in any form (including reduced land cost, waiver of fees, and tax
increment financing), evidence that such assistance is reasonably necessary to make the
Development financially feasible.
(f) Furnish satisfactory, financial data to the Authority evidencing the
Developer's ability to undertake the Development.
(g) Cooperate with the Authority and City in replatting of the Property as
described in Section 4.
4. During the tern of this Agreement, the Authority agrees to:
(a) Commence the process necessary to undertake such public assistance as is
necessary pursuant to the terns of the Proposal, including without limitation
commencement of actions necessary to expand Tax hncrement Financing District No. 1 -36
367304A SJB MN190 -135 2
to include the Property.
(b) Proceed to seek all necessary information with regard to the anticipated
public costs associated with the Development.
(c) Estimate the Authority's level and method of financial participation, if any,
in the Development and develop a financial plan for the Authority's participation.
(d) Grant to the Developer a right of access to the Property for purposes of
environmental and soil testing. Developer agrees to indemnify, save harmless, and
defend the Authority and City , their officers, and employees, from and against any and
all claims, actions, damages, liability and expense in connection with personal injury
and /or damage to the Property arising from or out of any occurrence in, upon or at the
Property caused by the act or omission of the Developer in connection with Developer's
entry on the Property. Further, Developer shall not permit any mechanics',
materialmens' or other liens to stand against the Property or any part thereof for work or
materials famished to Developer in connection with the right of entry granted pursuant to
this Agreement and Developer agrees to indemnify, defend and hold harmless the
Authority and City from and against the same.
(e) Commence replatting of the Property in order to create two parcels (with the divide
running parallel to Dalton Way). The parcel immediately adjacent to Developer's
existing parcel would contain 3 acres (referred to as "Parcel 1 "). The parcel adjacent to
Dalton Way would contain 3.19 acres (referred to as "Parcel 2 ").
5. It is expressly understood that execution of the Contract shall be subject to:
(a) A determination by the Authority in its sole discretion that its undertakings
are feasible based on (i) the projected tax increment revenues and any other revenues
designated by the Authority (to the extent requested by Developer); (ii) the purposes and
objectives of any tan increment, development, or other plan created or proposed for the
purpose of providing financial assistance for the Development, if any, including the
determination that such assistance is reasonably necessary in order to make the
Development possible; (iii) the best interests of the Authority.
(b) A determination by the Developer that the Development is feasible and in
the best interests of the Developer.
6. This Agreement is effective from the date hereof through October 31, 2010, unless
extended with approval of the Authority's board of cominissioners. After expiration of the tern of
this Agreement, neither party shall have any obligation hereunder except as expressly set forth to the
contrary herein.
(a) The EDA herein approved a 6 month extension to the terms of said Preliminary
Development Agreement on November 10, 2010, Said Agreement will be effective until April 30,
2011.
7. The Developer shall be solely responsible for all costs incurred by the Developer. hi
367304v4 Sin MN190 -135 3
addition, the Developer shall reimburse the Authority for Administrative Costs, as hereafter defined.
For the purposes of this Agreement, the term "Administrative Costs" means out of pocket costs
incurred by the Authority and City together with staff costs of the Authority and City, all
attributable to or incurred in connection with the negotiation and preparation of this Agreement, the
Contract, and other documents and agreements in connection with the Development, including
without lnnitation all costs in connection with replatting of the Property and the cost of financial
advisors, attorneys, and planning and environmental consultants.
In order to secure payment of the Administrative Costs, the Authority acknowledges that
Developer delivered $5,000 to the Authority upon filing an application for tax increment assistance.
Upon for before execution of this Agreement, Developer shall deliver an additional $5,000 to the
Authority (by cash or a certified check), for a total deposit of $10,000. If at anyone or more times
during the term of this Agreement, the Authority determines that Administrative Costs will exceed
$10,000 and that additional security is required, the Authority shall notify the Developer of the
amount of such additional security. Within ten calendar days of receipt of this notice, the Developer
shall deliver to the Authority the required additional security. The Authority will utilize the funds
delivered by the Developer to pay or reimburse itself for Administrative Costs. Upon termination of
this Agreement, the Authority will return to the Developer the funds paid by the Developer to the
Authority pursuant to this Section 7, less an amount equal to the Administrative Costs incurred by
the Authority through the date of notice of termination. For the purposes of this paragraph,
Administrative Costs are considered to be incurred if they have been paid, relate to services
performed, or are payable under a contract entered into, on or before the date of the notice of
termination.
This Section 7 shall survive termination of this Agreement and shall be binding on the
Developer regardless of the enforceability of any other provision of this Agreement.
This Agreement may be terminated upon 5 days written notice by a party to the
other party if:
(a) if, in the respective sole discretion of the Authority or the Developer, an
impasse has been reached in the negotiation or implementation of any material tern or
condition of this Agreement or the Contract; or
(b) the Authority determines that its costs in performing under this Agreement
well exceed $10,000 and the Developer does not deliver additional security to the Authority
pursuant to Section 7; or
(c) a party fails to perform any of it's obligations under this Agreement,
If either party terminates the Agreement under this Section 8, the Developer shall remain
liable to the Authority to the extent provided under Section 7 of this Agreement.
9. The Developer shall not assign or transfer its rights under this Agreement in full
or in part to any person or entity that is not a "Related Party," or enter into any subcontracts to
perform any of its obligations hereunder, without the prior written consent of the Authority. For
the purposes of this Agreement, a "Related Party" is an entity owned or controlled by Developer,
or owned and controlled by the same person or entity that owns or controls Developer.
367304v4 SJB MN190 -135 4
10. In the event that the Developer, its heirs, successors or assigns, fail to comply with
any of the provisions of this Agreement, the Authority may proceed to enforce this Agreement by
appropriate legal and /or finance consulting or equitable proceedings, or other similar proceedings,
and the Developer, its heirs, successors or assigns, agree to pay all costs of such enforcement,
including reasonable attomeys' fees.
11. If any portion of this Agreement is held invalid by a court of competent jurisdiction,
such decision shall not affect the validity of any remaining portion of the Agreement.
12. In the event any covenant contained in this Agreement should be breached by one
party and subsequently waived by another party, such waiver shall be limited to the particular
breach so waived and shall not be deemed to waive any other concurrent, previous or subsequent
breach.
13. Notice or demand or other communication between or among the parties shall be
sufficiently given if sent by snail, postage prepaid, return receipt requested or delivered personally:
(a) As to the Authority: Monticello Economic Development Authority
505 Walnut Street, Suite 1
Monticello, MN 55362 -8822
Attn: Executive Director
(b) As to the Developer: Rocky MTN Group, LLC
3360 Chelsea Road
PO Box 336
Monticello MN 55362
14. This Agreement may be executed simultaneously in any number of counterparts, all
of which shall constitute one and the same instrument.
15. This Agreement shall be governed by and construed in accordance with the laws of
the state of Minnesota. Any disputes, controversies, or claims arising out of this Agreement shall be
heard in the state or federal courts of Minnesota, and all parties to this Agreement waive any
objection to the jurisdiction of these courts, whether based on convenience or otherwise.
16. The Developer hereby agrees to protect, defend and hold the Authority, the City
and their officers, elected and appointed officials, employees, administrators, commissioners,
agents, and representatives harmless from and indemnified against any and all loss, cost, fines,
charges, damage and expenses, including, without limitation, reasonable attorneys fees,
consultant and expert witness fees, and travel associated therewith, due to claims or demands of
any kind whatsoever caused by Developer or arising out of actions of Developer (and excluding
those caused by or arising out of the Authority's or City's own acts or conduct) with regard to (i)
the development, marketing, sale or leasing of all or any part of the Property, including, without
limitation, any claims for any lien imposed by law for services, labor or materials furnished to or
for the benefit of the Property, or (ii) any claim by the state of Minnesota or the Minnesota
367304v4 SJB MN190 -135 5
Pollution Control Agency or any other person pertaining to the violation of any permits, orders,
decrees or demands made by said persons or with regard to the presence of any pollutant,
contaminant or hazardous waste on the Property; and (iii) or by reason of the execution of this
Agreement or the performance of this Agreement. The Developer, and the Developer's
successors or assigns, agree to protect, defend and save the Authority, and its officers, agents,
and employees, harmless from all such claims, demands, damages, and causes of action and the
costs, disbursements, and expenses of defending the same, including but not limited to, attorneys
fees, consulting engineering services, and other technical, administrative or professional
assistance. This indemnity shall be continuing and shall survive the performance, termination or
cancellation of this Agreement. Nothing in this Agreement shall be construed as a limitation of
or waiver by the Authority of any immunities, defenses, or other limitations on liability to which
the Authority is entitled by law, including but not limited to the maximum monetary limits on
liability established by Mimlesota Statutes, Chapter 466.
IN WITNESS WHEREOF, the Authority has caused this Agreement to be duly executed in
its name and behalf and its seal to be duly affixed hereto and the Developer has caused this
Agreement to be duly executed as of the day and year first above written.
ROCKY MTN GROUP, LLC
By
Its:
MONTICELLO ECONOMIC DEVELOPMENT
AUTHORITY
By
Its President
By
Its Executive Director
367304v4 STB M1,1190 -135 6
Description of Property
Outlot A, Otter Creel, Crossings, 1St Addition, and Outlot C, Otter Creek Crossings 3'd Addition,
according to the recorded plat thereof, Wright County, Minnesota.
367304A SJB MN190 -135 A -1
Project Proposal
367304v4 SJB MN190 -135 B_1
6. CONSIDERATION OF AUTHORIZING AMENDMENT TO GMEF 024 LOAN
AGREEMENT BETWEEN TAPPER'S HOLDING AND THE MONTICELLO
EDA:
A. REFERENCE AND BACKGROUND:
Bill Tapper from Tappers Holding submitted a letter requesting an extension of terms to
their Greater Monticello Enterprise Fund (GMEF) loan number 024. Tappers Holdings is
asking the EDA to amend the agreement to extend the current principal and interest
payment another three years. This would put their final balloon payment in the amount of
$137,221.89 due in 2013.
The EDA awarded Tappers Holding a five year loan in the amount of $200,000 in 2005
for the purpose of rehabilitating real estate.
B. STAFF RECOMMENDATION:
City Staff recommends the EDA approve extending the loan agreement for three years.
As you may recall, the EDA approved a similar request by WSI in April of 2009. The
economy continues to be challenging and it is staff's opinion we should assist our
existing businesses in areas where viable. Extending the loan an additional three years
appears to be a reasonable request. It should also be noted the GEMF loan guidelines
allow for extension of balloon payments. The applicant has provided a letter from Stems
Bank stating the company would not be issued a loan in order to fulfill the GMEF balloon
payment.
C. ALTERNATIVE ACTION:
1. Motion to adopt Resolution #2010 -69 approving an amendment of the loan agreement
between the Monticello EDA and Tappers Holdings.
2. Motion to deny Resolution #2010 -69 based on findings of fact.
3. Motion to table action.
EDA 11.10.10
November 3, 2010
EDA
Monticello, MN
55362
Dear EDA Members:
The purpose of this letter is to inform you that Tapper's Inc. has a balloon payment of
approximately $168,000 due to the EDA on November 1, 2010. As you are aware
Tapper's Inc.'s business activities are closely related to the new home industry and as
you are also aware currently there is almost no new home building. We have during the
last year been able to switch a good portion of our production to commercial cabinets and
fixtures. While this has allowed us to once again increase our work force, we have not
been able to recover enough to enable us to qualify for new bank loans or to generate
enough cash to cover this payment. As a result I am asking the EDA to defer the balloon
payment for a minimum of three years. We will continue to make monthly payments
during this extension. This is allowed under the EDA Business Subsidy Criteria Deferral
of Payments provision. I am attaching a letter from our bank rejecting a $168,000 loan
request.
Thank you for your consideration.
Sincerely,
William R. Tapper
STEARNS
' BANKN .A.
We Get The Job Done!"
November 3, 2010
Mr. William Tapper
Tapper's Inc.
212 Chelsea Rd
Monticello, MN 55362 -8919
RE: Loan Request
Dear Bill
4191 2nd Street South + St. Cloud, MN 56301
320 -253 -6607 or 1 -800- 320 -7262 ♦ Fax: 320-253-3051
www.stearns- bank.com ♦ Member FDIC. Equal Housing Lender 0
Stearns Bank regrets to inform you that we will are unable to meet your
request for $168,000 advance to pay the balloon payment due to the EDA.
If you have questions or conceals, you can call me at 320 - 202 -6132.
jSiZre ;
Steve Domine
Senior Vice President
SMD /ke
Steams Bank Locations: St. Cloud, MN - Albany, MN . Holdingford, MN - Upsala, MN - Scottsdale, AZ
EDA RESOLUTION NO. 2010-69
RESOLUTION APPROVING AN AMENDMENT OF THE
LOAN AGREEMENT BETWEEN THE CITY OF
MONTICELLO ECONOMIC DEVELOPMENT
AUTHORITY AND TAPPERS HOLDING, LLC AND OF
THE PROMISSORY NOTE MADE BY TAPPERS
HOLDING.
BE IT RESOLVED BY the Board of Commissioners ('Board ") of the City of Monticello
Economic Development Authority (the "Authority" or "Holder ") as follows:
Section 1. Recitals.
1.01. The Authority and Tappers Holdings, LLC (the "Maker ") entered into a loan
agreement (the "Loan Agreement') dated as of June 13, 2005, for the acquisition of certain real
property in the City of Monticello.
1.02. Pursuant to the Loan Agreement, the Authority loaned to the Borrower the sum of
$2000,000 (the "Loan"), evidenced by a promissory note (the "Note ") and a Mortgage (the
"Mortgage" ), both dated as of June 13, 2005, and executed and delivered to the Authority by the
Borrower. The Mortgage was recorded on October 17, 2006 in the office of the Wright County
Recorder as document no. A1029695.
1.03. The Loan Agreement and Note provide for a sixty -month term of the Loan, which is
currently due and payable on November 1, 2010.
1.04. The Maker has requested modification of the Loan Agreement and Note to
provide for an extension of the term of the Loan for an additional 36 months.
Section 2. Amendment of Loan Agreement and Note Approved.
2.01. The Authority hereby approves amendment of the Loan Agreement in
substantially the form attached hereto as Exhibit A, and authorizes execution of the amended
Loan Agreement, subject to modifications that do not alter the substance of the transaction and
that are approved by the President and Executive Director, provided that execution of the
amended Loan Agreement by those officials shall be conclusive evidence of their approval.
2.02. The Authority further authorizes delivery to the Maker of the original Note upon
receipt of a replacement Note, amended as described in this resolution, from the Maker.
Approved this 10th day of November, 2010, by the Board of Commissioners of the City of
Monticello Economic Development Authority.
President
ATTEST:
Executive Director
348990vl MNI MN325 -6
EXHIBIT A
FIRST AMENDMENT TO LOAN AGREEMENT
This First Amendment to Loan Agreement (the "Amendment') is made this day of
20010, by Tappers Holdings LLC, a Minnesota corporation (the "Borrower ") and
the City of Monticello Economic Development Authority, a public body corporate and politic
(the "Authority").
RECITALS
A. The Borrower and the Authority entered into a loan agreement (the "Loan
Agreement') dated as of June 13, 2005, for rehabilitation of certain real property described on
Exhibit A attached hereto (the "Property') in the City of Monticello (the "City").
B. Pursuant to the Loan Agreement, the Authority loaned to the Borrower the sum of
$200,000 (the "Loan"), evidenced by a promissory note (the "Note ") and a mortgage (the
"Mortgage "), both dated as of November 1, 2005 (the "Loan Closing Date "), and executed and
delivered to the Authority by the Borrower. The Mortgage was recorded on October 17, 2006 in the
office of the Wright County Recorder as document no. Al 029695.
C. The Loan Agreement provides for a sixty -month term of the Loan, which is due and
payable on November 1, 2010.
D. The Loan Agreement contained a business subsidy agreement consisting of certain
job and wage goals to be met by June 13, 2007, and such job and wage goals have been duly
satisfied by the Borrower.
E. The parties desire to extend the tern of the Loan beyond the term provided in the
Loan Agreement, and have agreed to modify certain terms and conditions of the Loan
Agreement as set forth below.
NOW, THEREFORE, in consideration of the premises and the mutual obligations of the
parties hereto, each of them does hereby covenant and agree with the other as follows:
1. Amendment of paragraph 2 of the Loan Agreement. Paragraph 2 of the Loan
Agreement is amended to read as follows:
Repayment of Loan. The Loan shall be repaid with interest as follows:
(a) Interest at the rate of two percent (3.5 %) per annum shall accrue from the
Loan Closing Date until the Loan is repaid in full.
(b) Payments of principal and interest shall continue on the third day of each and
every month until the Loan is repaid in full. Such payments shall fully amortize any
3489900 MNI MN325 -6 A -1
outstanding balance of the Loan over twenty (20) years from the Loan Closing Date;
provided, however, the entire remaining unpaid balance of principal and interest shall be due
and payable on the first day of the ninety -six (96`11) month following the Initial Payment
Date of November 1, 2005.
2. Miscellaneous. Except as amended by this Amendment, the Loan Agreement
shall remain in full force and effect. Upon execution, Borrower shall reimburse the Authority for
all out -of pocket -costs incurred by the Authority in connection with negotiating, drafting and
approval of this Amendment.
348990v1 MNI MN325 -6 A -`Z
IN WITNESS WHEREOF, this Amendment has been duly executed and delivered by the
proper officers thereunto duly authorized on the day and year first written above.
CITY OF MONTICELLO ECONOMIC
DEVELOPMENT AUTHORITY
By:
President
By:
Executive Director
[Signature page to First Amendment to Loan Agreement- Monticello EDA, Monticello, Minnesota]
348990v1 MNI MN325 -6 A -3
BORROWER
TAPPER HOLDINGS, LLC
By:
Its
[Signature page to First Amendment to Loan Agreement- BoiTower]
348990vi MNI MN325 -6 A -4
Exhibit A
Description of Property
Lot 12, Block 002, Oakwood Industrial Park, City of Monticello
348990v1 MNI MN325 -6 A -5
Tapper's Holding, LLC
GMEF #024 Extension
Original Amount
162,937.80
Interest Rate
3.500%
Payments Commence
11/1/2010
Ending on Later
Than
10/1/2013
Total
Balance
Date
Principal
Interest
Payment
Remaining
11/1/2010
700.53
459.39
1,159.92
161,777.88
12/1 /2010
688.07
471.85
1,159.92
161,089.81
111/2011
690.07
469.85
1,159.92
160,399.74
2/1/2011
692.09
467.83
1,159.92
159,707.65
3/1/2011
694.11
465.81
1,159.92
159, 013.54
411/2011
696.13
463.79
1,159.92
158,317.41
5/1/2011
698.16
461.76
1,159.92
157,619.25
6/1/2011
700.20
459.72
1,159.92
156,919.06
7/1/2011
702.24
457.68
1,159.92
156,216.82
8/1/2011
704.29
455.63
1,159.92
155,512.53
9/1/2011
706.34
453.58
1,159.92
154,806.19
1011/2011
708.40
451.52
1,159.92
154,097.78
11/1/2011
710.47
449.45
1,159.92
153,387.32
12/1/2011
712.54
447.38
1,159.92
152,674.78
1/1/2012
714.62
445.30
1,159.92
151,960.16
2/1/2012
716.70
443.22
1,159.92
151, 243.45
3/1/2012
718.79
441.13
1,159.92
150,524.66
4/1/2012
720.89
439.03
1,159.92
149,803.77
5/1/2012
722.99
436.93
1,159.92
149,080.78
6/1/2012
725.10
434.82
1,159.92
148,355.68
7/1/2012
727.22
432.70
1,159.92
147,628.46
8/1/2012
729.34
430.58
1,159.92
146,899.13
9/1/2012
731.46
428.46
1,159.92
146,167.66
10/1/2012
733.60
426.32
1,159.92
145,434.06
11/1/2012
735.74
424.18
1,159.92
144,698.33
12/1/2012
737.88
422.04
1,159.92
143,960.44
11112013
740.04
419.88
1,159.92
143,220.41
2/1/2013
742.19
417.73
1,159.92
142,478.21
3/1/2013
744.36
415.56
1,159.92
141, 733.86
4/1/2013
746.53
413.39
1,159.92
140,987.33
5/1/2013
748.71
411.21
1,159.92
140,238.62
6/1/2013
750.89
409.03
1,159.92
139,487.73
7/1/2013
753.08
406.84
1,159.92
138,734.65
8/1/2013
755.28
404.64
1,159.92
137,979.37
9/1/2013
757.48
402.44
1,159.92
137,221.89
10/1/2013 137,221.89
400.23
1,159.92
(0.00)
7. CONSIDERATION OF RENEWING LISTING AGREEMENTS WITH WAYNE
ELAM OF COMMERCIAL REALTY SOLUTIONS.
A. REFERENCE AND BACKGROUND:
The EDA approved entering into a Commercial Listing Agreement with Wayne Elam on
March 11, 2009 for Monticello Business Park. At the time of approval in 2009, Wayne Elam
was working for Vantage Point Partners. Subsequent to EDA approval, Wayne Elam
developed his own broker company known as Commercial Realty Solutions.
Due to the fact Mr. Elam's obligation with Vantage Point Partners has expired and therefore
the listing agreements are void. Mr. Elam is requesting the EDA authorize signing the listing
agreements under his new company. The terms of the listing agreements have not changed.
The EDA can cancel the contract within 30 days written notice.
B. STAFF RECOMMENDATION:
City Staff recommends entering into the attached Listing Agreements with Wayne Elam. Mr.
Elam is a very aggressive and pro- active broker that has proved to work very complimentary
with the City. Mr. Elam continually partners with the City at various trade shows and
conferences to further promote Monticello. Wayne has meet with Staff many times to discuss
potential leads and brain storm over ideas on best uses for various properties. It is staff's
opinion by listing property with Mr. Elam the City gains additional exposure ainong key
decision makers.
C. ALTERNATIVE ACTIONS:
1. Motion to approve entering into a Listing Agreement with Commercial Realty
Solutions.
2. Motion to deny entering into a Listing Agreement with Commercial Realty Solutions.
3. Motion to table action and direct staff to complete more research.
D. SUPPORTING DATA:
a. Listing Agreement
EDA 11.10.10
Sale Listing Agreement
1. Date: October 25, 2010
2. Page One:
3. IN CONSIDERATION OF the Agreement of _Commercial Realty Solutions, LLC.
4. (hereinafter referred to as `BROKER') to undertake to sell the property hereinafter described
5. City of Monticello (hereinafter referred to as "SELLER') grants to BROKER the exclusive right to
6. sell or contract to sell the property at Otter Creek Crossing 3`d Addition, Outlets A, B, C & E,
7. Monticello, MN identified as PID #155 -191- 000010, 155- 191- 000020, 155 -191- 000030, 155 -191-
8. 000040,155-194-000020 and 155- 194 - 000030. Hereinafter referred to as the( "PROPERTY ") for the
9. period from the date hereof and shall continue until May 1, 2011. The listing agreement shall continue
10. thereafter with a 30 -day written notice of cancellation. The PROPERTY consists of approximately
11. 50 acres of commercial land. The property shall be priced at $2.15 per square foot. Terms of the sale
12. shall be CASH, or any other price, terms or exchange to which SELLER may consent. SELLER
13. understands that BROKER may list other properties during the term of this Agreement which may
14. compete with SELLER'S PROPERTY for potential buyers.
15. SELLER'S OBLIGATIONS
16. It is agreed that SELLER shall promptly furnish BROKER with complete information concerning any
17. person who during the period of this Agreement makes inquiry to SELLER regarding the sale, exchange
18. or lease of the PROPERTY.
19. If the PROPERTY is sold, SELLER hereby agrees to furnish to buyer an Abstract of Title, a Registered
20. Property Abstract or a Title Insurance Commitment, certified to date, to include proper searches
21. covering bankruptcies and state federal judgments and liens, and to execute or cause to be executed a
22. Deed conveying title to the PROPERTY to the buyer and any further documents as may be required to
23. consummate the sale in accordance with the terms above designated or with the terms to which
24. SELLER may hereafter consent. SELLER further agrees to promptly notify BROKER of any notices
25. pertaining to the PROPERTY which are hereafter received during the term of this Agreement. It is
26. further agreed that SELLER shall permit BROKER to erect a "For Sale" sign on the PROPERTY and to
27. remove all other "For Sale" signs from the PROPERTY during the period of this Agreement. It is
28. further agreed that SELLER shall permit BROKER to erect a "Sold" sign on the PROPERTY for a
29. eriod of thirty (30) days following the sale or exchange of the PROPERTY by BROKER.
COMMERCIAL REALTY SOLUTIONS
WWW.ColY1mrolltysolutlons'Com
30. Otter Creek Crossing 3`a Addition, Outlets A, B, C & E, Monticello, MN
31. Page 2
32. SELLER shall permit BROKER to place information on the Minnesota Commercial Property Exchange
33. (MCPE) and the internet concerning the PROPERTY. Broker may notify the MCPE and member
34. REALTORS of the price and terms of the sale.
35. COMPENSATION
36. It is further agreed that SELLER shall pay BROKER a brokerage fee of 4% or 6% percent ( %).
37. Commissions will be 4% if Commercial Realty Solutions is the only broker involved in the transaction.
38. If there is a cooperating broker involved representing the buyer, the commissions will be 6% and will be
39. split with each broker receiving 3 %. Commissions will be paid upon the base sale price prior to any
40. City incentives which would reduce the effective purchase price. Minimum commissions paid for a
41, transaction will be $5,000. For transactions of existing property owners acquiring additional land
42. Commercial Realty Solutions will be paid the minimum transaction fee of $5,000. Commissions are
43. payable upon occurrence of any of the following conditions;
44. 1. The Sale, contract for sale, exchange or conveyance of the PROPERTY during the period of this
45. Agreement by BROKER or any other person, including, but not limited to, SELLER, or any other agent
46. or broker not a parry to this Agreement, in accordance with the price, terms or exchange as set forth
47. herein or as otherwise consented to by SELLER.
48.2. If a BUYER is procured, whether by BROKER, SELLER or anyone else, who is ready, willing
49. and able to purchase the PROPERTY at the price and terms set forth above and SELLER refuses to sell.
50.3. If SELLER agrees to sell the PROPERTY before this contract expires, and SELLER refuses to
51. close the sale.
52.4. If SELLER removes the PROPERTY from the market before expiration of this Listing Agreement,
53. 5. If SELLER grants an option to purchase the PROPERTY, SELLER shall compensate BROKER,
54. as provided herein, based on the price paid for the option and for any extensions thereof. The
55. compensation shall be paid upon receipt by SELLER of any such payments. In the event such option is
56. exercised, whether during the tern of this Agreement, or within 3 months thereafter, SELLER
57. shall also compensate BROKER on the gross sale price of the PROPERTY in accordance with the
58. provisions herein. Notwithstanding the foregoing, to the extent that all or part of the price paid for the
59. option or any extension thereof is applied to the sales price of the PROPERTY, then any compensation
60. Previously paid by owner to BROKER on account of such option payments shall be credited against the
61. compensation payable to BROKER on account of the exercise of the option.
62. Otter Creek Crossing 3`d Addition, Outlots A, B, C & E, Monticello, MN
63. Page 3
64.6. SELLER contributes or conveys the PROPERTY or any interest therein to a partnership, joint
65. venture or other business during the term of the Agreement in lieu of a sale of the PROPERTY during
66. the term of this Agreement.
67.7. SELLER is a partnership or other business entity, and an interest in the partnership or other
68, business entity is transferred, whether by merger, outright purchase or otherwise in lieu of sale of the
69. PROPERTY during the term of this Agreement.
70.8. If within 90 days (not to exceed 180 days, except for the purchase or sale of a business
71. in which case it cannot exceed two (2) years) after the end of this Agreement, SELLER sells or agrees to
72. sell the PROPERTY to anyone who has made an affirmative showing of interest in the PROPERTY by
73. responding to an advertisement or by contacting the BROKER or salesperson involved or has been
74. physically shown the PROPERTY by the BROKER or salesperson. It is understood that BROKER shall
75. not seek to enforce collection of a compensation under this subparagraph nine (9) unless the name of
76. the prospect is on a written list given to SELLER within 72 hours after expiration of this Agreement.
77. As security for BROKER'S compensation. SELLER hereby grants to BROKER a security
78. interest in the proceeds from the sale or lease of the PROPERTY described herein and any title company
79. or other closer who conducts the closing on the sale or lease of the PROPERTY described herein is
80. directed to disburse the BROKER'S compensation provided hereunder to the BROKER at the time of
81. Closing.
82. SELLER further agrees that in the event a LEASE of the PROPERTY is entered into (a) during the term
83. of this Listing Agreement, or (b) during the period set forth in subparagraph nine (9) above with a
84. person or entity as described therein, then SELLER shall pay BROKER a leasing commission of
85. one months gross lease amount for each year of the lease, not to exceed 5 years. For short term leases,
86, minimum commission amount is one months gross lease amount, which shall be due and payable upon
87. execution of the lease or as otherwise agreed in writing.
88. Otter Creek Crossing 3rd Addition, Ouflots A, B, C & E, Monticello, MN
89. Page 4.
90.
SELLER'S REPRESENTATIONS
91. SELLER has full legal right to sell or lease the PROPERTY. SELLER certifies that as of the date of
100. execution of this Agreement, SELLER has not received any notice of building, health, fire code
101. violations, nor notice of hazardous waste on the PROPERTY, nor notice of condemnation pertaining
102, to the PROPERTY, except as herein noted (if none, state "none "):
103. CERTIFICATION INDIVIDUAL TRANSFEROR
104. Section 1445 of the Internal Revenue Code provides that a transferee (buyer) of a U. S.
105. Real property interest must be notified in writing, and must withhold tax if the transferor
106. (SELLER) is a foreign person and the sale price exceeds $300,000. In the event transferor
107. (SELLER) is a foreign person and the sale price exceeds $300,000, requirements of the
108. 1980 Foreign Investment in Real Property Tax Act (FIRPTA) will be fulfilled. SELLER
109. States and acknowledges the following:
110. I am a citizen of the United States or, if a corporation, partnership or other business entity, duly
111. incorporated in the United States, or, if a partnership or business entity, formed and governed by the
112. laws of the United States: —X —Yes No
113. If "No," please state country of citizenship, incorporation or the like:
114. Under the penalties of perjury, I declare that I have examined this certification and, to the best of my
115. Imowledge and belief, it is true, correct and complete.
FORFEITURE OF EARNEST MONEY
116. If a buyer of the PROPERTY defaults and as a result forfeits the earnest money, SELLER shall
117. receive 50 percent ( %) and BROKER shall receive 50 percent ( %) of the earnest money.
120.
COOPERATING BROKERS
121. SELLER hereby permits BROKER to share part of BROKER'S compensation with other real estate
122. brokers, including brokers only representing the buyer.
123. Otter Creels Crossing 3'd Addition, Outlots A, B, C & E, Monticello, MN
124. Page 5
125.
CLOSING SERVICES
126. After a purchase agreement for the PROPERTY is signed, arrangements must be made to close the
127. transaction. SELLER understands the SELLER may arrange for a qualified closing agent or attorney
128. to conduct the closing, or SELLER may ask BROKER to arrange for closing.
129. SELLER understands that SELLER may be required to pay certain closing costs which may
130. effectively reduce the proceeds from the sale. SELLER has indicated his /her /its choice for
131, closing services. (initial one)
132. SELLER wishes to have BROKER arrange for closing services.
133. SELLER shall arrange for closing services.
134. MISCELLANEOUS
135.1. This Agreement is binding upon the heirs, successors and assigns of the parties.
136.2. All of the representations and covenants of this Agreement shall survive and be enforceable after
137. termination of the Agreement.
138.3. In the event of any litigation instituted by SELLER or BROKER to enforce the provisions of this
139. Agreement, the prevailing party shall recover reasonable attorneys' fees, costs and expenses from
140. the other parry.
141.4. This Agreement constitutes the complete agreement between the parties and supersedes any prior
142. oral or written agreements between the parties relative to the provisions herein. No amendment,
143. modification or extension of this Agreement shall be valid or binding unless made in writing and
144 signed by both the SELLER and BROKER.
145.5. This contract shall be governed by the laws of the State of Minnesota.
146. Commercial Realty Solutions, LLC.
(SELLER) (BROKER)
147. By:
(Signature)
148.
(Date)
(Date)
8. AUTHORIZING A $2,500 CITY PLATINUM SPONSORSHIP FOR THE NAIFC
QUALIFYING ICE FISHING TOURNAMENT TO BE HELD ON PELICAN
LAKE IN MONTICELLO IN 2011
A. REFERENCE AND BACKGROUND:
The Monticello Chamber of Commerce and Industry was approach by Ice Man Realty
Show to co -host a fishing tournament on Pelican Lake in January of 2011. The Chamber
is required to come up with $12,000 in order to attract the show to the City. Sandy Suchy
from the Monticello Chamber contacted City Staff inquiring if the City would be willing
to be a sponsor. Economic Development Director Barnett believes supporting the Ice
Man Realty fishing tournament in Monticello will prove to be beneficial to numerous
local businesses. Supporting Monticello's local businesses is important for the overall
economic stability in the community. Due to the numerous economic benefits to the
business community, Director Barnett stated she would present the request to the EDA.
Supporting all business sectors in the community provides for a strong sustainable
community and appears to fall within the scope of the EDA.
A platinum sponsor consists of $2,500. Staff is proposing the sponsorship amount be
utilized from the 2011 marketing budget. Attached is a list of local businesses that have
stepped up and committed dollars to support bringing a national ice fishing tournament to
Monticello.
B. STAFF RECOMMENDATION:
City Staff recommends authorizing the City of Monticello to be a Platinum Sponsor for
the NAIFC Qualifying Ice Fishing Tournament to be held on January 21 -23, 2011 on
Pelican Lake in Monticello. This tournament will bring national exposure to Monticello,
which will in turn provide additional revenue for many businesses in the City. The scope
of the EDA encompasses encouraging and supporting a strong and sustainable economic
climate in the City. Supporting an event that has the potential to drive additional revenue
to many businesses in Monticello is one way to stimulate the local business economy.
C. ALTERNATIVE ACTIONS:
1. Motion to approve a $2,500 Platinum Sponsorship for the NAIFC Iee Fishing
Tournament to be utilized from the 2011 marketing budget.
2. Motion to deny the City sponsoring the NAIFC at a Platinum Sponsorship level.
3. Motion to table item for further research.
D. SUPPORTING DATA:
a. Misc. information regarding NAIFC Ice Fishing Tournament
I
0
Host Community Return on Sponsorship Dollars
Prior to all 2009 -2010 NAIFC Tournaments each and every contestant was asked to fill out a survey. The forecast of
revenues laid out in the survey's answers show a tremendous return on Host Comnumity sponsorship dollars. The survey's
answers show the Qualifying Tournament generates substantial community dollars throughout the year.., there is a great.deal
more revenues generated than just during the weekend of the Qualifying Tournament. The teams fishing in the Qualifying
Tournament visit the Host Community several times a year. The revenue generated in the Host Community is constantly on
going, so the Qualifying Tournament should be looked al as a year round event that positively affects the "entire"
community, '
During open water season: The summer and fall months, teams will scout the Host Lake. The teams are not fishing
exactly..., they are learning the lake. Teams find weed - lines, map the lake's contours and mark GPS spots that may hold
good structure. Whatever the team's purpose; That activity brings big dollars to the Host Community... around $35,880.00
total or about $358.00 per lean entered in the tournament (see appendix #1 survey question #3).
After freeze -up: The time period between when the lake freezes over and the weekend of the tournament. Once again the
teams come to pre -fish the Host Lake. This time period falls at the very end of the fourth quarter and during the early first
quarter of the financial year for most retail establishments... getting a revenue boost at this time of the year is exactly what
'cry business in the Host Community would want, The survey indicates that pre - fishing amounts to $41,250.00 total or
about $412.50 per team entered in the tournament (see appendix #1 survey question #2).
The week prior to the tournament: Pre - fishing is kicked into high gear at this time, with almost every team in town.
Survey answers forecast the Host Community revenues for this time period to total near $63,040.00 or about $630.00 per
team entered in the tournament (see appendix #1 survey question #5).
Tournament Weekend: The Friday Night Seminar, Saturday Night Rules Meeting and the Sunday competition. 80 -90% of
the teams are in the Host Community by Friday night. 100% on Saturday night as the Rules meeting is mandatory. 10 -15%
of the teams stay over Sunday night. For a 100 team tournament, that equates to 190 room nights for the weekend, @$60,00
a night = $11,400.00. Food, drinks for those three days plus a gas fill tip leaving town easily equates to $125.00 per team
adding an additional $12,500.00 to the weekend for a total of $23,900.00 or about $239.00 per team entered in the
tournament.
Total Year Long Revenues: With the Host Community Sponsor ship in -place allowing the Qualifying Tournament to be
announced as soon as possible in the year, thus allowing for a summer prc- fishing season, along with ice conditions that are
fishable during the hard -water season a 100 leant tournament has the history/potential to produce $164,070.00 city wide, or
about $1,640.00 per team entered in the tournament.
None of the above figures remotely puts a value on the media exposure the Host Community reaps!
320.252.0428 1 www.naifc.com j info @naife.com
Monticello Chamber of Commerce
Signor, for Community
Event Information
Email:
1JpiB
HOME I ABOUT US I CONTACT US
WELCOME TO MONTICELLO
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1st Annual
NAIFC Qualifying Ice Fishing
Tournament
(See information below)
Monticello Chamber named one of the Top 25
Chamber of Commerce in the 112212010 Issue of the
Minneapolls /St. Paul Business Journal.
> HIGHLIGHTS
Annual Banauet- A Nloht In
Santa's Workshop
1st Annual NAIFC Qualifying Ice
A Night In Santa's Workshop
On Friday, December lOm
S
5:30pm- 11:00pm at the
Monticello Community
Center. Enjoy a delicious plated
14
meal stacked with some of
23
Russell's most favorite dishes;
za
Granny Smith Apple Salad with
Candied Walnuts, Grilled Sirloin
topped with a red wine reduction
mushroom sauce, Garlic Mashed
Potatoes, and delicate Chocolate
Mint Cake for Dessert. Be
entertained by local band SALT
followed by the Annual
Presentation where Monticello
Chamber's Business of the Year
will be announced and Joni Pawelk
will give her final hurrah as Board
Chair. Tickets are $60 per person
and If you reserve a table of eight
or more guests you receive a
complimentary bottle of wine.
RSVP before November 12th to
be entered into our Early Bird
Drawing to WIN a Gift
Certificate and a Bottle of
Wine - compliments ofRussell's
on the Lake. Register Here:
Annual Banauet- A Nloht In
Santa's Workshop
1st Annual NAIFC Qualifying Ice
Monticello, MN
43-F
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Enter dtyor U.6 Zip � „Gtr
> WHAT'S NEW
Welcome New Chamber Members
The Chamber welcomes new businesses!
> more info
CHAMBER EVENTS:
Chamber Lunch -
Good Morning Monticello
Extreme Networking
Business After Hours
> more Info
MEMBER NEWSH
Members share your news!
> more info
Government Affairs Friday
Meetings
Next Meeting Date: TBD
Bachmann Bulletin
At Fmmken Uodates
Amy Koch
Bruce Anderson
Amv Klo6uchar
> more info
Halloween Parade - Oct 30th
The Parade begins at Wallgreen's at
10:00am. Kids dressed up in their
costumes parade down Walnut
Street and end at the Monticello
Community Center. When they reach
the Community Center they enter
the building and trick or treat at the
different businesses lining the halls
on their way to the gymnasium
where the kids games are. If You're
Pagel of 3
Advertisements
Constant Co'
i
li DD -it Yourself t't
E -Mall Murkeiinge 1
Free 60 -Day Trial
Loarn Krrea
http : / /www.inoliticellochainber.com/ 11/3/2010
Time - 9:42 AM
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Welcome New Chamber Members
The Chamber welcomes new businesses!
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Amy Koch
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Halloween Parade - Oct 30th
The Parade begins at Wallgreen's at
10:00am. Kids dressed up in their
costumes parade down Walnut
Street and end at the Monticello
Community Center. When they reach
the Community Center they enter
the building and trick or treat at the
different businesses lining the halls
on their way to the gymnasium
where the kids games are. If You're
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EVENT HIGHLIGHT
Schedule of Events
NAIFC QUALIFYING ICE FISHING
TOURNAMENT SCHEDULE OF EVENTS January
21- 23,2011
Spectators Welcome at All Events
FRIDAY
Friday Night Social at the Monticello Community Center: 6PM (Cash
Bar /Food Available) -This event is open to the public!
Friday Night Seminar: 7PM –IOPM Well knowspeaker presents & mini
Ice fishing trade show /break out Cracker Barrel Sesslons
(Open to public and fishing contestants. 300+ attendees expected.)
SATURDAY
On ice Break -out Session: 7AM – 9AM
(Same groups as Friday Night January 22)
Kids Ice Camp (Monticello Community Center): 10 –10:30 AM;
Kids Ice Camp (Pelican Lake): 10:30 –12:00 noon;
Kids Ice Camp food and hot coca (on ice): 11:00 –1:00 PM
Rules Clinic for all Volunteers at River City Extreme: 4PM
(Rules Meeting at River City Extreme)
Registration Opens: 5:00 –7:00 PM (CashBor /Meal)
Rules Meeting: 7:00 –&00 PM (Mandatory for all fishing)
SUNDAY
6:00 AM Parking Opens
6 :00 –7:00 AM Line Up of Equipment and Contestants
7:00 AM Equipment Inspection
7:30 AM Contestants Released onto the Lake - Volunteers in position
8:00 AM Fishing Starts
1:05 - 3:00 PM Weigh -in
3:00 - 3:30 PM Awards
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Monticello Chamber 2 Commerce & 763) 29 V.O. Eon 192, Monticello, CO 55362
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Economic Development Director Updates:
EDA:
It is anticipated Ward Carlson will demolish structures located at 413 4th Street the week of
November 15th. Staff is recommending a for sale sign be erected on the property (staff will
contact public works to see if they can make a generic sign). At this time staff is not
recommending entering in a listing agreement with a real estate agent. Since the construction
season is coming to an end it would make more sense to engage such services during Spring
of 2011. Staff will contact the neighboring properties to see if there is any wiliness on their
part to purchase the property.
IEDC:
A strong BR &E program is vital to the success of retaining and attractin¢ businesses into a
community. Staff realizes we are in the process of creating a strong BR &E program, however
it seems appropriate to begin implement now. In one of the conferences I attended in Arizona,
I was talking to another community that recently implemented a Concierge Team. Most
people know and can quickly relate to a Concierge. Therefore the Concierge concept has
worked well as it ties a community together.
I think it is safe to say that most people like Concierges as they provide us with a wealth of
information in a friendly manner (as least they should). It is their job to help, we have the
preconceived notion that they will give us the information we need. It is quite apparent based
on the results of the BR &E survey that one of the main things we are lacking in the City is
coordinated communication. Which, from my perspective is interesting considering we have
SO many task forces, resources, and programs in the City. In any case, it is evident we are not
communicating in a manner that is catching people's attention. The idea is if we mass market
the term "Monticello Concierge" we may be able to draw people's attention quicker and give
them the sense that we will help them with all their need.. We will hopefully be able to tie in
what we already have in place and market it in a coordinated and consistent manner.
Q. Who will be part of the Concierge Team?
*IEDC, City Staff (Angela and Megan), and Chamber.
Q. What will the Team do?
*Be the face and front line for Monticello existing and new businesses
*Meet during IEDC regular meetings
*Attend Site Review meetings with new applicants (staff will email IEDC members
and request an applicable member attend)
*Setup quarterly BR &E visits
*Establish a Concierge phone number and website and provide project, application,
and resource info
*Exchange information on what programs are available
*Coordinate marketing and communication materials to provide the business
community with less number but more effective information
*Address and bring forward business concerns to the appropriate body
*This Team will be the link and often times advocate for existing and new businesses
in the community
The best part is we already have the frame work in place. We have an IEDC that is
instrumental in advocating for a better business community in Monticello, a site review
process is already in place, the Chamber is already active. Now we just have to pull it all
together in an aggressive marketing and coordinated strategy.
Q. How would we market?
*PICTURES! Yes, people quickly associate with faces and people. We would hire a
local photographer to take professional pictures. We would print greeting cards and all
the necessary marketing materials to do a mass media blitz about this team.
* Website. We just launched a new website. This website will be expanded to include a
Concierge page. This website will be the port for all community and business related
resources. Several people will have access to update this website. This team will
become the umbrella for people to obtain all existing information throughout the
community.
*Business E -News, Chamber, notify the Rotary, Workforce center, and any other
applicable groups.
The IEDC supports this new concept and we will begin implementing immediately.
Planning Commission: See attached agenda.
BR &E:
Please mark your calendars for Thursday, November 18, 2010 at 7:30am at the Community
Center for the BR &E Project Implementation Planning meeting. It is important to work
together as a part of the larger group in order to motivate and challenge one another, keep
abreast of what other teams are doing, where they are having difficulties, and where they need
help.
The agenda for the session is as follows:
1. Review the givens, background and previously made decisions
2. Envision the future - Imagine the day after completion of your project. What do you see,
feel, and hear?
3. Acknowledge the situation by talking through the potential benefits and dangers that would
result from succeeding with your action plan and listing the strength and weaknesses of the
team.
4. Identify the tasks through brainstonning activities and clustering actions that overlap or
could be done by the same group.
5. Establish time frames - each project team plan its activities
6. Finalize details of coordinating leadership, budget and follow through mechanisms
Attached to this report is a list of projects the BR &E Task Force discussed and ultimately
prioritized importance. The point of the implementation meeting is to identify more specific
projects within each over broad category.
EDA November 10, 2010
Inquiries:
Staff will be sending out direct marketing pieces in the next month to hopefully spark
inquiries by late winter to early spring.
Industrial Marketing / Venues:
City Staff and Wayne Elam attended the Medical Design and Manufacturing tradeshow on
October 6t" and 71t at the Minneapolis Convention Center. The exhibit hall was packed with
various types of medical manufactures, consultants, sales companies, State agencies, and
communities. Staffs overall impression of the conference was it contained many good
exhibitors; however people in attendance seemed to be mostly students and unemployed
workers. One positive was we were able to obtain a list of all exhibitors and their contact
information. However, this is not a tradeshow Staff would recommend being an exhibitor in
the future. The City could attend the event at a lower price and still receive a copy of all
exhibitor information.
Wayne Elam attended the MNCAR Expo for the City on October 27, 2010. MNCAR
continues to be a good venue for the City to affiliate.
The LifeScience Alley conference is coming up on December Sty'. Wayne Elam and Sandy
Suchy will be attending this event. The Economic Development Director will be in school this
week in order to complete the 2nd week of a 4 week certification course to become a certified
Economic Development Finance Professional. According to several other cities and Positively
MN staff, the LifeScience Alley conference provides a more focused attendance audience.
This year has a busy year in attending many conferences and tradeshows. City staff continues
to try to diversify the City's exposure to end users and cormmercial brokers.
Business Communications & Retention Initiatives:
www .buildinebusinessinmonticello .coin has been launched. However, due to lack of staff
time, the site is not up to the standards desired by the Economic Development Director. This
continues to be a work in progress.
The Industry of the Year event was well attended. Electro Industries was very appreciative to
be the first Industry of the Year award recipient. Staff has received positive feedback from
attendees. If higher attendance can continue to achieved, it would be worth discussing
soliciting a higher profile speaker (possible pay a professional motivational speaker) that
could really motivate the audience.
Thank you to everyone who participated in the site visits of Electro Industries and UMC.
These companies appreciate our efforts to stay in contact with them. These visits should be
done on a regular basis. Staff is hopeful the newly created "Monticello Concierge" team will
assist in making these visits become a regular occurrence.
EDA November 10, 2010
Transportation:
Intersection improvements for Highway 25 and 75 are anticipated to begin shortly as part of
the Walgreens development. It appears Walgreens will be locating in Monticello as City staff
released the plat and executed all necessary documents on Friday October 29, 2010. Staff
anticipates demolition of the old theatre building to occur within the next couple weeks.
Embracing Downtown:
McComb Group met with downtown stake holders on October 19th. Many business and real
estate owners were in attendance. Jana King, from Economic Development Services, went
through a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis of downtown.
Attendees seemed to enjoy the exercise as it sparked good discussion and provided the
consulting team with great information.
Jana will be holding individual stake holder meetings on November 4th and 11th. Many retail
businesses are currently conducting a retail survey to assist in data needed for the market
analysis. It is anticipated the Steering Committee will reconvene in December.
Future Meeting Dates:
1. IEDC: December 7,2 010
2. EDA: December 8, 2010
3. BR &: Priority Project implementation November 18, 2010 7:30an
EDA November 10, 2010