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EDA Agenda 12-12-2012 (Workshop Meeting)EDA 2013 WORK PLAN WORKSHOP Wednesday, December 12th, 2012 Mississippi Room - 505 Walnut Street, Monticello, MN Commissioners: President Bill Demeules, Vice President Bill Tapper, Treasurer Tracy Hinz, Matt Frie, Rod Dragsten and Council members Tom Perrault and Brian Stumpf Staff. Executive Director Jeff O'Neill, Wayne Oberg and Angela Schumann 1. Call to Order 2. Review 2012 Work Plan and Accomplishments 3. Understanding Resources a. 2013 Budget Review i. TIF Districts ii. "General Sub - Fund" iii. Subsidy Programs 4. Discuss 2013 Potential Priorities • TIF 1 -22 Management • Job Creation and Retention • Attracting New Business • Capitalizing on FiberNet • Memberships /organizations: Maximizing Partnerships • Lead Response • Expanding Tax Base o EDA land • Business Retention • Enhancing Downtown • TIF 1 -22 Target Projects • Fagade Improvement program • ReSTOREing downtown financial commitment • Facilitating Redevelopment • Housing and Redevelopment • Senior and multi - family housing study • Housing Increment Utilization 5. Prioritization Exercise 6. Review and Conclude MEMORANDUM TO: MONTICELLO EDA COMMISSIONERS FROM: ANGELA SCHUMANN, COMMUNITY DEVELOPMENT DIRECTOR SUBJECT: 2013 EDA WORK PLAN WORKSHOP DATE: 12/6/2012 CC: JEFF O'NEILL, WAYNE OBERG The EDA will not receive a formal staff report with recommendations as related to the 2013 work plan. Rather, staff has prepared the agenda such that the EDA will have an opportunity to review its accomplishments over the previous year, discuss available resources for achieving (or continuing to achieve) its 2013 priorities, and then go through a brainstorming and discussion exercise for 2013 priorities. In that regard, staff has prepared a booklet of information to support the EDA in setting its 2013 priorities. The booklet includes: • EDA Bylaws • 2012 Work Plan • 2013 Budget • Redevelopment Policies • Subsidy Program Information • TIF 1-22 Map • TIF 1-19, 1-20, 1-24, and 1-29 Housing District Information • EDA and City Owned Properties Map • Downtown Monticello Aerial Image • Otter Creek Business Park Available Inventory Map • Economic Development Chapter, Comp Plan • Transportation System Plan, Maps o System Plans o TH 25/CSAH 75 Layout BYLAWS OF THE ECONOMIC DEVELOPMENT AUTHORITY ARTICLE I - THE AUTHORITY Section 1. Name of Authority. The name of the Authority shall be the "City of Monticello Economic Development Authority." Section 2. Office of Authority. The office of the Authority shall be at the City Hall in the City of Monticello, State of Minnesota, but the Authority may hold its meetings at such other place or places as it may designate by resolution. Section 3. Seal of Authority. The seal of the Authority shall be in the form of a circle and shall bear the name of the Authority and the year of its organization. Section 4. Establishment. The City of Monticello Economic Development Authority is established pursuant to Minnesota Statutes, Section 469.090 to 469.108 1, as amended. ARTICLE II - THE COMMISSIONERS Section 1. Appointment, Terms, Vacancies, Pay, and Removal. Shall be in accordance with the Amended and Restated Resolution Enabling the Creation of the City of Monticello Economic Development Authority dated October 22, 2007 and as it may be amended (the "Enabling Resolution ") and Section 2 -3 -1 of Ordinance Amendment No. 172, Chapter 3, City of Monticello, Wright County, Minnesota (the "Ordinance "). ARTICLE III - THE OFFICERS Section 1. Officers. The Authority shall elect a president, a vice president, a treasurer, a secretary, and an assistant treasurer at the annual meeting. A commissioner must not serve as president and vice president at the same time. The other offices may be held by the same commissioner. The offices of secretary and assistant treasurer need not be held by a commissioner. Section 2. President. The President shall preside at all meetings of the Authority. Except as otherwise authorized by resolution of the Board of Commissioners, the President and the Executive Director (the Assistant Treasurer, in the Executive Director's absence or incapacity) shall sign all contracts, deeds, and other instruments made or executed by the Authority, except that all checks of the Authority shall be signed by the Treasurer and Assistant Treasurer. At each meeting the President shall submit such recommendations and information as he or she may consider proper concerning the business, affairs, and policies of the Authority. Section 3. Vice President. The Vice President shall perform the duties of the President in the absence or incapacity of the President, including signing all contracts, deeds, and 1 325599v5 MNI MN190 -130 other instruments executed by the Authority; and in the case of the resignation or death of the President, the Vice President shall perform such duties as are imposed on the President until such time as the Board shall select a new President. Section 4. Secretary. The Secretary shall keep minutes of all meetings of the Board and shall maintain all records of the Authority. The office of Secretary may be held by the Executive Director upon approval thereof by the Authority. Section 5. Treasurer's Duties. The treasurer: (1) shall receive and is responsible for Authority money; (2) is responsible for the acts of the assistant treasurer; (3) shall disburse Authority money by check only; (4) shall keep an account of the source of all receipts and the nature, purpose, and authority of all disbursements; (5) shall file the Authority's detailed financial statement with its secretary at least once a year at times set by the Authority; and (6) shall prepare and submit an annual report describing the Authority's activities and providing an accurate statement of its financial condition to the City of Monticello by no later than one month following the annual meeting of the Authority. Section 6. Assistant Treasurer. The assistant treasurer has the powers and duties of the treasurer if the treasurer is absent or disabled. Section 7. Public Money. Authority money is public money. ARTICLE IV - EXECUTIVE DIRECTOR The Economic Development Director shall be designated as Executive Director of the Authority. Section 1. Duties. The Executive Director shall have general supervision over the administration of the Authority's business and affairs subject to the direction of the Authority. The Executive Director in his or her own name and title shall keep the records of the Authority, shall act as recorder of the meetings of the Authority and record all votes, and shall keep record of the proceedings of the Authority in a journal of proceedings to be kept for such purpose, and shall perform all duties incident to the office. The Executive Director shall, with the President, sign all contracts, deeds, and other instruments executed by the Authority, and shall keep in sole custody the seal of the Authority and shall have power to affix such seal to all contracts and instruments authorized to be executed by the Authority. 2 325599v5 MNI MN190 -130 Any person appointed to fill the office of Executive Director, or any vacancy herein, shall have such terms as the Authority fixes, but no commissioner of the Authority shall be eligible to serve as the Executive Director. ARTICLE V - MEETINGS Section 1. Regular Meetings. Regular meetings shall be held on the 2nd Wednesday of each month. Section 2. Annual Meeting. The annual meeting of the Authority shall be held in conjunction with the regular February meeting at the regular meeting place of the Authority. The August regular meeting shall include final fund balances reviewed at the Annual Meeting. Section 3. Special Meetings. Special meetings of the Authority may be called by the President, two members of the Authority, or the Executive Director for the purpose of transacting any business designated in the call. All commissioners of the Authority shall be notified. Section 4. Quorum. At any meeting of the Authority, the presence of four commissioners shall constitute a quorum. If a quorum is not present at any meeting, those present shall have power to adjourn the meeting from time to time without notice other than announcement at such meeting until the requisite number of votes shall be present to constitute a quorum. At any such adjourned meeting at which a quorum is present, any business may be transacted which might have been transacted at the meeting as originally called. Any resolution, election, or other formal action of the Authority shall be adopted upon the affirmative vote of a majority of the Authority membership. Section 5. Rules of Procedure. Unless otherwise specified in the Enabling Resolution, the Ordinance, or in these bylaws, all meetings of the Authority shall be conducted in accordance with Roberts' Rules of Order revised. Section 6. Manner of Voting. The voting on all questions coming before the Authority shall be voice unless the President calls for a roll call vote. The yeas and nays shall be entered upon the minutes of such meetings. ARTICLE VI - EMPLOYEES; SERVICES; SUPPLIES Section 1. Employ. Subject to limits set by the appropriations or other funds made available, the Authority may employ such staff, technicians, and experts as may be deemed proper and may incur such other expenses as may be necessary and proper for the conduct of its affairs. Section 2. Contract for Services. The Authority may contract for services of consultants, agents, public accountants, and other persons needed to perform its duties and exercise its powers. Section 3. Legal Services. The Authority may use the services of the city attorney or 3 325599v5 MNI MN190 -130 hire a general counsel for its legal needs. The city attorney or general counsel, as determined by the Authority, is its chief legal advisor. Section 4. Supplies. The Authority may purchase the supplies and materials it needs to carry out its function pursuant to Minnesota Statutes, Sections 469.090 to 469.1081. Section 5. City Purchasing. The Authority may use the facilities of its city's purchasing department in connection with construction work and to purchase equipment, supplies, or materials. Section 6. City Facilities, Services. The City may furnish offices, structures and space, and stenographic, clerical, engineering, or other assistance to the Authority. Section 7. Delegation Power. The Authority may delegate to one or more of its agents or employees powers or duties as it may deem proper. ARTICLE VII - POWERS Section 1. Functions, Powers, and Duties. Shall be in accordance with the Enabling Resolution and Section 2 -3 -4 of the Ordinance. Section 2. Limitations of Power. Shall be in accordance with the Enabling Resolution and Section 2 -3 -5 of the Ordinance. ARTICLE VIII - AMENDMENTS Section 1. Amendment to Bylaws. The bylaws of the Authority shall be amended by a majority vote of the Authority membership at a regular or special meeting. The amendments must be in written form. Section 2. Conflicts. In any instance where these bylaws are in conflict with the Enabling Resolution or Ordinance, the Enabling Resolution and Ordinance shall control. Section 3 Authority. Effective Date Dated: December 15, 2010. These bylaws are effective upon their adoption by the Signed: President (Seal) Executive Director 4 325599v5 MNI MN190 -130 EDA 2012 WORK PLAN Purpose: The EDA is charged with coordinating and administering the City of Monticello's economic development and redevelopment plans and programs. The EDA is also responsible for housing and redevelopment. Job attraction and retention: 1. Promote amenities in Monticello 2. Implement a technical training program in conjunction with existing business workforce needs 3. Provide appropriate higher education classes / training opportunities 4. Work with the Monticello School district to implement a strong STEM program and better coordinate opportunities between the students and industries Attracting New Businesses: 1. Industries that provide livable wage jobs and compliment Monticello's current businesses 2. Market to companies in St. Cloud and CEO's in Monticello and surrounding areas 3. Host a Broker Breakfast Expanding Tax Base: 1. Promote gap financing options to help facilitate new development and business expansions 2. Promote business expansion incentive program 3. Review land area options for future industrial park and initiate a master planning process in coordination with the IEDC 4. Develop a strategic plan for use of surplus TIF 5. Participate in the I -94 Corridor Coalition Business Retention: 1. Promote GMEF, business expansion incentive, and other financing options 2. Communicate on a regular and consistent basis 3. Participate on the Transportation Advisory Committee (TAC) to continue to move transportation initiatives forward to improve traffic flow in and through the city. 4. Work in conjunction with the IEDC to develop a follow up BR &E survey 5. Continue to fund Industry of the Year Event Enhancing Downtown: 1. Start initiating recommendations from the Embracing Downtown plan a. Initial catalyst projects could include redevelopment of Block 34 and the "Anchor" Block 2. Apply for all applicable redevelopment grants including Small Cities Grant 3. Pursue purchasing properties that fit within the "next steps" or recommendations stated in the Embracing Downtown Plan 4. Establish a Downtown revitalization program Facilitating Redevelopment: 1. Initiate recommendations from the Embracing Downtown Plan 2. Participate in residential redevelopment when determined appropriate Housing & Redevelopment Authority: 1. Purchase distressed properties and promote redevelopment of said properties at such time when they will add additional tax capacity and value to the community. 2. Look at the potential to sell 413 0 Street for a single lot user or retain for future redevelopment possibilities 3. Research need and opportunities for additional affordable housing in the City EDA Consolidated ACCOUNT NUMBER SPECIAL REVENUE FUNDS EDAFUND 2008 2009 2010 2011 2012 2012 2013 % ACTUAL ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGET CHANGE 213- 00000- 310110 CURRENT AD VALOREM TAXES $0 $0 $0 $0 $0 $0 - -- 213- 00000- 310210 DELINQUENT AD VALOREM TAX 56 27 0 0 0 0 213- 00000- 310310 MOBILE HOME TAX 5 6 0 0 0 0 - -- 213- 46502- 310500 TIF #2 - METCALF & LARSON 47,656 30,232 37,619 0 0 0 - -- 213- 46505- 310500 TIF #5 - CONSTRUCTION 5 59,697 55,467 54,362 49,007 52,687 52,687 0 - 100.0% 213- 46506- 310500 TIF #6- RAINDANCE 42,322 49,140 75,145 77,583 77,580 83,228 83,528 7.79/6 213- 46519- 310500 TIF #19 - MISSISSIPPI SHORES 36,240 33,292 32,457 32,687 32,500 33,299 33,299 2.5% 213- 46520- 310500 TIF #20 - PRAIRIE WEST 23,885 23,936 21,945 21,201 20,500 18,413 18,413 -10.2% 213- 46522- 310500 TIF #22 - CCD /DOWNTOWN 367,368 348,367 362,053 325,380 295,085 314,648 78,624 -73.4% 213- 46523- 310500 TIF #23 - MIDWEST GRAPHICS 0 0 0 0 0 0 - -- 213- 46524- 310500 TIF #24 - ST BEN'S CENTER 50,134 53,860 48,158 47,023 47,020 48,873 48,873 3.9% 213- 46526- 310500 TIF #26 - TWIN CITY DIE CAST 42,148 42,363 0 0 0 0 - -- 213- 46527- 310500 TIF #27 - JJ CO /PROFILE PW 0 0 0 0 0 0 - -- 213- 46528 - 310500 TIF #28 - IRTI 11,903 11,964 0 0 0 0 - -- 213- 46529- 310500 TIF #29 - FRONT PORCH 30,495 29,851 26,164 28,206 24,128 25,462 25,462 5.59/6 213- 46530- 310500 TIF #30 -CMHP 12,048 12,167 10,982 11,338 81950 7,717 7,717 -13.89/6 213- 46531- 310500 TIF #31 - U.M.C. 79,587 79,994 79,407 82,280 0 0 - -- 213- 46533- 310500 TIF #33 - TAPPER'S HOLDINGS 24,263 24,387 0 0 0 0 - -- 213- 46534- 310500 TIF #34 -194 INTERCHANGE 254,178 293,060 301,517 269,290 269,300 279,177 279,177 3.7% 213- 46536- 310500 TIF #36- DAHLHEIMERDIST 67,156 67,516 68,185 68,185 68,185 68,858 68,858 1.0% 213- 46537- 310500 TIF #37 - KARLSBURGER FOODS 23,306 24,787 24,787 24,787 24,787 24,639 24,639 -0.6 213- 46538- 310500 TIF #38 - WALKER IN -STORE 0 12,604 12,604 13,596 13,595 12,650 12,650 -7.0 % 213 - 46581 - 310500 TIF 22.5 - CCD /AMOCO 0 0 0 0 0 -- 213- 00000- 319100 PENALTIES & INT - TAX 0 1 0 0 0 0 - -- 213- 00000- 334020 HOMESTEAD CREDIT 9,231 9,219 9,818 0 0 0 - -- 213- 46500- 341090 INITIATION /APPLICATION FEE 15,875 5,000 0 0 2,000 0 - 100.0% 213 - 00000- 362110 INTEREST EARNINGS 95,746 112,219 129,768 277,474 117,092 115,000 63,000 -46.2% 213 - 00000- 362400 SALE OF PROPERTY 75,094 62,496 67,569 72,615 0 0 - -- 213- 00000- 362990 OTHER MISCELLANEOUS REV 300 39,036 34,107 37,253 0 0 - -- 213- 46621- 362150 INT EARNINGS - TAPPERS #021 789 636 478 316 149 150 100 -32.9% 213- 46622 - 362150 INT EARNINGS - UMC #022 609 0 1,917 0 0 0 213- 46623 - 362150 INT EARNINGS - WSI IND #023 5,575 5,855 5,614 2,267 0 0 - -- 213- 46624 - 362150 INT EARNINGS - TAPPER'S #024 6,357 6,088 5,792 5,504 5,205 6,000 5,000 -3.9% 213- 46625- 362150 INT EARNINGS - KARLSBURGER #025 11,821 10,333 10,710 10,075 2,415 4,000 2,500 3.5% 213- 46626 - 362150 INT EARNINGS - HOGLUND #026 0 0 1,917 5,421 3,907 4,000 4,000 2.4% 213- 46627 - 362150 INT EARNINGS - PET HOSPITAL #027 0 0 0 0 1,272 1,400 1,200 -5.7% 213- 46500- 362200 TIF LOAN REPAYMENT - PRIN 0 17,049 16,540 13,928 11,938 203,022 9,900 -17.1 213- 46500- 362220 TIF LOAN REPAYMENT - INT 0 7,577 6,511 1 5,301 5,474 1 01 4,904 4,904 01 4,400 -10.3% 213 - 00000 - 392000 TRANSFERS FROM OTHER FDS 1 20,702 1 2,302,832 01 80,000 1 - -- TOTAL REVENUES $1,414,546 $3,771,361 $1,451,427 $1,480,890 $1,083,199 $1,308,127 $851,340 EDA Budget - 1 EDA Budget - 2 SPECIAL REVENUE FUND 2008 2009 2010 2011 2012 2012 2013 % EDA (Consolidated) EDA/HRA ACTUAL ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGET CHANGE 213 - 46301- 410100 SALARIES, FULL TIME - REG $10,466 $624 $18,229 $18,214 $16,190 $16,190 $51,785 219.86% 213 - 46301- 410200 SALARIES, FULL TIME - OT 0 0 0 0 0 0 0 - -- 213- 46301 - 410400 SALARIES, TEMPORARY - REG 0 0 0 0 0 0 0 - -- 213- 46301- 410900 SALARIES, OTHER 243 296 570 0 0 0 0 - -- 213- 46301 - 411100 SEVERANCE PAY 5,388 0 0 0 500 500 0 - 100.00% 213 - 46301- 412100 PERA CONTRIBUTIONS 696 62 1,317 1,320 1,210 1,210 3,754 210.24% 213 - 46301 - 412200 FICA CONTRIBUTIONS 731 56 1,098 11091 1,035 1,035 3,210 210.21% 213 - 46301- 412300 MEDICARE CONTRIBUTIONS 171 13 257 255 242 242 751 210.32% 213 - 46301 - 413100 HEALTH /DENTAULIFE INSURAN 1,280 0 4,202 4,984 4,358 4,358 6,500 49.15% 213 - 46301- 413500 FLEX BENEFITS 9 0 0 0 25 25 0 - 100.00% 213 - 46301- 421990 GENERAL OPERATING SUPPLIE: 288 0 0 0 0 0 0 213- 46301- 422990 MISC REPAIR & MTC SUPPLIES 0 0 0 0 0 0 0 - -- 213- 46301- 424100 SMALL TOOLS & EQUIPMENT 0 0 0 0 0 0 0 - -- 213- 46301- 430260 PROF SRV - CONSTRUCTION CC 1,728 96 0 0 0 0 0 213- 46301 - 430300 PROF SRV - ENGINEERING FEE 13,614 214 4,438 11,267 3,000 3,000 0 - 100.00% 213 - 46301- 430400 PROF SRV - LEGAL FEES 2,846 6,304 16,987 16,467 10,000 23,541 10,500 5.00% 213 - 46301- 430910 PROF SRV - SOFTWARE /PRGRM 0 0 0 0 0 0 0 - -- 213- 46301- 431990 MISC PROFESSIONAL SERVICES 25,476 7,366 145,170 91,700 10,000 77,143 13,473 34.73% 213 - 46301 - 432400 DELIVERY MAIL SERVICE (UPS 0 132 102 1,331 0 0 0 - -- 213- 46301- 433100 TRAVEL EXPENSE 0 0 2,203 0 2,000 2,000 0 - 100.00% 213 - 46301 - 433200 CONFERENCE & SCHOOLS 0 0 245 154 11000 11000 0 - 100.00% 213 - 46301 - 434600 MARKETING 19,112 3,722 16,181 17,338 20,000 20,000 17,000 - 15.000/6 213 - 46301- 435100 LEGAL NOTICE PUBLICATION 817 547 843 2,067 775 652 228 - 70.58% 213 - 46301- 435200 GENERAL PUBLIC INFORMATION 0 1 0 0 4,998 3,000 1 3,000 0 - 100.00 213 - 46301 - 437100 PROPERTYTAXES 18,746 0 1,860 2,131 0 3,015 0 213- 46301- 437300 DECERTIFICATION REIMB 0 0 0 0 0 0 0 213- 46301- 438200 WATER & SEWER 0 0 0 0 0 0 0 - -- 213- 46301- 438300 GAS 0 4,264 0 0 0 0 0 - -- 213- 46301- 443300 DUES, MEMBERSHIP & SUBSCRI 0 0 7,906 10,769 10,000 10,000 10,000 0.00% 213 - 46301 - 443500 BOOKS & PAMPHLETS 0 0 0 0 200 200 0 - 100.00% 213 - 46301 - 443800 PUB WKS /ADMIN & INSP FEES 1,406 311 0 0 0 0 0 - -- 213- 46301 - 443990 MISC OTHER EXPENSE 52 5,665 2,180 464,944 7,000 10,476 7,000 0.00% 213 - 46301- 451010 LAND 104,925 0 0 0 0 941,084 0 - -- 213- 46301- 453010 IMPROVEMENTS 0 15,088 0 0 20,000 20,000 0 - 100.00% 213 - 46301 - 452010 BUILDINGS 0 0 0 0 0 0 0 - -- 213- 46301- 456010 FURNITURE & FIXTURES 0 0 0 0 0 0 0 - -- 213- 46301 - 460300 DEBT SRV PRINC -OTTER CREEK 174,649 608,141 16,540 13,929 55,928 51,691 58,048 3.79% 213 - 46301- 460500 SA PRIN PYBL -LAND FOR RESA 0 0 0 0 0 0 0 - -- 213- 46301- 461300 DEBT SRV INT -OTTER CREEK 63,156 38,613 6,511 5,474 22,689 30,002 23,877 5.24% 213 - 46301- 461500 SA INT PYBL -LAND FOR RESAL 0 0 0 0 0 0 0 --- 213-46301-462010 FISCAL AGENT FEES 0 0 0 0 0 0 0 213- 46301- 465010 TIF LOAN 32,334 1 21,656 0 0 1 0 0 0 - -- 213- 46301- 465110 TIF PAYBACK INSTALLMENTS 136,968 509,239 572,352 415,057 259,752 224,254 206,540 - 20.49% 213 - 46301 - 465120 LOCAL CONTRIB - TIF PENALT 0 0 0 0 0 0 0 - -- 213- 00000 - 472030 TRANSFER TO GENERAL FUND 0 0 0 0 0 0 0 - -- 213- 00000 - 472030 213-00000-472030 213 - 00000 - 472030 TRANSFER TO OTHER FUNDS TRANSFER TO DEBT SERVICE F TRANSFER OUT - TRUNK FEES 0 0 356,179 0 0 378,680 0 --- 468,767 363,712 317,277 316,279 320,584 320,584 319,403 -0.37% 0 0 0 0 0 0 0 - -- TOTAL EXPENDITURES $1,083,868 1 $1,586,121 $1,492,647 $1,399,769 $769,488 $2,143,882 $732,069 -4.86% EDA FUND 2008 2009 2010 2011 2012 2012 2013 % EDA General EDA/HRA ACTUAL ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGET CHANGE 213 - 46301- 410100 SALARIES, FULL TIME - REG $10,466 $624 $18,229 $18,214 $16,190 $16,190 $16,972 4.83% 213 - 46301- 410200 SALARIES, FULL TIME - OT 0 0 0 0 0 0 0 - -- 213- 46301 - 410400 SALARIES, TEMPORARY - REG 0 0 0 0 0 0 0 213- 46301- 410900 SALARIES, OTHER 243 296 570 0 0 0 0 - -- 213- 46301- 411100 SEVERANCE PAY 5,388 0 0 0 500 500 0 - 100.00% 213 - 46301- 412100 PERA CONTRIBUTIONS 696 62 1,317 1,320 1,210 1,210 1,230 1.65% 213 - 46301 - 412200 FICA CONTRIBUTIONS 731 56 1,098 1,091 1,035 1,035 1,052 1.66% 213 - 46301- 412300 MEDICARE CONTRIBUTIONS 171 13 257 255 242 242 246 1.65% 213 - 46301 - 413100 HEALTH /DENTAULIFE INSURAN 1,280 0 4,202 4,984 4,358 4,358 6,500 49.15% 213 - 46301- 413500 FLEX BENEFITS 9 0 0 0 25 25 0 - 100.00% 213 - 46301- 421990 GENL OPERATING SUPPLIES 288 0 0 0 0 0 0 - -- 213- 46301- 422990 MISC REPAIR & MTC SUPPLIES 0 0 0 0 0 0 0 213- 46301 - 424100 SMALL TOOLS & EQUIPMENT 0 0 0 0 0 0 0 - -- 213- 46301- 430260 PROF SRV - CONSTRUCTION CO 1,728 96 0 0 0 0 0 - -- 213- 46301- 430300 PROF SRV - ENGINEERING FEE 13,614 214 4,438 4,533 3,000 3,000 0 - 100.00% 213 - 46301- 430400 PROF SRV - LEGAL FEES 2,499 1 1,785 1,789 10,931 1 10,000 10,000 10,000 0.00 213 - 46301- 430910 PROF SRV - SOFTWARE /PRGRM 0 0 0 0 0 0 0 - -- 213- 46301- 431990 MISC PROFESSIONAL SERVICES 1,776 0 5,486 6,003 10,000 10,000 10,000 0.00% 213 - 46301 - 432400 DELIVERY MAIL SERVICE (UPS 0 132 102 1,331 0 0 0 - -- 213- 46301- 433100 TRAVEL EXPENSE 0 0 2,203 0 2,000 2,000 0 - 100.00% 213 - 46301- 433200 CONFERENCE & SCHOOLS 0 0 245 154 1,000 1,000 0 - 100.00% 213 - 46301- 434600 MARKETING 19,112 3,722 16,181 17,338 20,000 20,000 17,000 - 15.00% 213 - 46301 - 435100 LEGAL NOTICE PUBLICATION 479 150 310 1,114 500 500 0 - 100.00% 213 - 46301- 435200 GENERAL PUBLIC INFORMATION 0 0 0 4,998 3,000 3,000 0 - 100.00% 213 - 46301 - 437100 PROPERTY TAXES 0 0 0 374 0 0 0 - -- 213- 46301 - 438200 WATER & SEWER 0 0 0 0 0 0 0 213- 46301- 438300 GAS 0 0 0 0 0 0 0 213- 46301- 443300 DUES, MEMBERSHIP & SUBSCRI 0 0 7,906 10,769 10,000 10,000 10,000 0.00% 213 - 46301 - 443500 BOOKS & PAMPHLETS 0 0 0 0 200 200 0 -100.00% EDA Budget - 2 213 - 46301 - 443800 PUB WKS /ADMIN & INSP FEES 1,406 311 0 0 0 0 0 - -- 213- 46301 - 443990 MISC OTHER EXPENSE 52 5,665 2,027 2,823 7,000 7,000 7,000 000% 213 - 46301 - 451010 LAND 104,925 0 0 0 0 0 0 - -- 213- 46301- 453010 IMPROVEMENTS 0 15,088 0 0 20,000 20,000 0 - 100.00% 213 - 46301 - 456010 FURNITURE & FIXTURES 0 0 0 0 0 0 0 213- 46301- 460300 DEBT SRV PRINC -OTTER CREEK 100,000 564,293 0 0 0 0 0 - -- 213- 46301 - 460500 SA PRIN PYBL -LAND FOR RESA 0 0 0 0 0 0 0 213- 46301 - 461300 DEBT SRV INT -OTTER CREEK 39,858 1 31,036 0 0 0 0 0 - -- 213- 46301 - 461500 SA INT PYBL -LAND FOR RESAL 0 0 0 0 0 0 0 - -- 213- 00000 - 472030 TRANSFER TO GENERAL FUND 0 0 0 0 0 0 0 - -- 213- 00000 - 472030 TRANSFER TO DEBT SERVICE F 133,715 0 0 0 0 0 0 - -- 213- 00000 - 472030 TRANSFER OUT - TRUNK FEES 0 0 0 0 0 0 0 - -- TOTAL EXPENDITURES $438,436 $623,543 $66,360 $86,232 $110,260 $110,260 $80,000 - 27.44% EDA FUND 2008 2009 2010 2011 2012 2012 2013 % EDA - TIEAdmin TIE Administration ACTUAL ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGET CHANGE 213 - 46301- 410100 SALARIES, FULL TIME - REG 34,813 213 - 46301- 410200 SALARIES, FULL TIME - OT 213 - 46301- 410400 SALARIES, TEMPORARY - REG 213 - 46301- 410900 SALARIES, OTHER 213 - 46301 - 411100 SEVERANCE PAY 213 - 46301- 412100 PERA CONTRIBUTIONS 2,524 213 - 46301- 412200 FICA CONTRIBUTIONS 2,158 213 - 46301- 412300 MEDICARE CONTRIBUTIONS I 1 505 TOTAL EXPENDITURES EDA FUND $0 $0 $0 $0 $0 $0 $40,000 - -- 2008 2009 2010 2011 2012 2012 2013 % EDA - TIES TIE #5- CONSTRUCTION 5 ACTUAL ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGET CHANGE 213 - 46505 - 430400 PROF SRV - LEGAL FEES $0 $34 $335 $0 $0 213- 46505 - 431990 MISC PROFESSIONAL SERVICES 14,697 396 0 400 0 213- 46505- 435100 LEGAL NOTICE PUBLICATION 59 22 30 125 0 - -- 213- 46505 - 437100 PROPERTY TAXES 18,746 0 0 0 0 - -- 213- 46505 - 451010 LAND 0 0 0 0 0 - -- 213- 46505 - 452010 BUILDINGS 0 0 0 0 0 - -- 213- 46505- 460300 DEBT SRV PRINCIPAL-SHIRT TE 0 0 0 0 0 - -- 213- 46505 - 461300 DEBT SRV INTEREST-SHIRT TER 0 0 0 0 0 - -- 213- 46505- 462010 FISCAL AGENTS' FEES 0 0 0 0 0 - -- 213- 46505- 465120 LOCAL CONTRIB - TIE PENALT 0 0 0 0 0 --- 213-46505-472030 TRANSFER TO DEBT SERVICE F 0 0 0 0 0 TOTAL EXPENDITURES $33,502 $452 $365 $525 $0 $0 $0 - -- EDA FUND 2008 2009 2010 2011 2012 2012 2013 % EDA -TIF6 TIE #6- RAINDANCE ACTUAL ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGET CHANGE 213 - 46506 - 430400 PROF SRV - LEGAL FEES MISC PROFESSIONAL SERVICES $0 527 $35 $335 $0 $0 $0 $0 500 - -- - -- 213- 46506- 431990 396 0 0 0 500 213- 46506- 435100 LEGAL NOTICE PUBLICATION 17 0 22 30 26 0 - -- 213- 46506 - 460300 DEBT SRV PRINCIPAL -SHRT TE 0 0 0 0 --- 213-46506-461300 DEBT SRV INTEREST-SHIRT TER 0 0 0 0 0 - -- 213- 46506- 462010 FISCAL AGENTS' FEES 0 0 0 0 0 - -- 213- 46506 - 465120 LOCAL CONTRIB - TIE PENALT 0 0 0 0 0 - -- 213- 46506- 472030 TRANSFER TO DEBT SERVICE F 0 0 0 0 0 - -- TOTAL EXPENDITURES $544 $453 $365 $26 $0 $500 $500 - -- EDA FUND 2008 2009 2010 2011 2012 2012 2013 % EDA - TIF 19 TIE #19 - MISSISSIPPI SHORES ACTUAL ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGET CHANGE 213 - 46519- 430300 PROF SRV - ENGINEERING FEE $0 $0 $0 $0 $0 $0 $0 - -- 213- 46519- 430400 PROF SRV - LEGAL FEES 0 0 61 0 0 - -- 213- 46519- 431990 MISC PROFESSIONAL SERVICES 527 430 0 0 0 - -- 213- 46519- 435100 LEGAL NOTICE PUBLICATION 17 23 30 27 25 25 100 300.00% 213 - 46519 - 443990 MISC OTHER EXPENSE 0 0 0 0 0 - -- 213- 46519 - 451010 LAND DEBT SRV PRINCIPAL-SHIRT TE DEBT SRV INTEREST-SHIRT TER 0 0 0 0 0 - -- 213- 46519- 460300 0 0 0 0 0 - -- 213- 46519- 461300 0 0 0 0 0 - -- 213- 46519- 462010 FISCAL AGENTS' FEES 0 1 0 0 0 1 0 - -- 213- 46519 - 465010 TIE LOAN 0 0 0 0 0 - -- 213- 46519 - 465110 TIE PAYBACK INSTALLMENTS LOCAL CONTRIB - TIE PENALT 16,308 31,289 44,193 29,418 29,418 0 0 -100.00% 213 - 46519- 465120 0 0 0 0 0 - -- 213- 46519- 472030 TRANSFER TO DEBT SERVICE F 0 0 0 0 0 - -- TOTAL EXPENDITURES $16,852 $31,742 $44,284 $29,445 $29,443 $25 $100 - 99.66% 2009 2010 2012 2013 % EDA FUND 2008 2011 2012 EDA - TIF 20 TIE #20 - PRAIRIE WEST ACTUAL ACTUAL ACTUAL ACTUAL I BUDGET PROJECTED BUDGET CHANGE 213 - 46520 - 430300 PROF SRV - ENGINEERING FEE $0 $0 $0 $0 $0 $0 $0 - -- 213- 46520 - 430400 PROF SRV - LEGAL FEES 0 0 61 0 0 500 500 213- 46520 - 431990 MISC PROFESSIONAL SERVICES 527 430 0 0 0 - -- 213- 46520 - 435100 LEGAL NOTICE PUBLICATION 18 22 30 26 25 -100.00% 213 - 46520- 443990 MISC OTHER EXPENSE 0 0 0 0 0 - -- 213- 46520 - 451010 LAND 0 0 0 0 0 - -- 213- 46520 - 460300 DEBT SRV PRINCIPAL-SHIRT TE 0 10,342 10,731 9,892 7,701 7,701 6,521 - 15.32% 213 - 46520- 461300 DEBT SRV INTEREST-SHIRT TER 0 3,334 2,436 1,544 1,077 1,077 -100.00% 213 - 46520- 462010 FISCAL AGENTS' FEES 0 0 0 0 0 - -- 213- 46520 - 465010 ITIF LOAN 1 01 0 1 01 01 0 EDA Budget - 3 213 - 46520 - 465110 TIF PAYBACK INSTALLMENTS 4,778 9,563 13,108 7,624 8,349 - 100.00% 213 - 46520- 465120 LOCAL CONTRIB - TIF PENALT 0 0 0 0 0 - -- 213- 46520- 472030 TRANSFER TO DEBT SERVICE F 13,927 0 0 0 0 - -- TOTAL EXPENDITURES EDA FUND TIF #22- DWNTWNREDEVELOPI $19,250 $23,691 $26,366 $19,086 $17,152 $9,278 $7,021 - 59.07% 2008 ACTUAL 2009 ACTUAL 2010 ACTUAL 2011 2012 2012 2013 BUDGET % CHANGE EDA - TIF 22 ACTUAL BUDGET PROJECTED 213 - 46522 - 430300 PROF SRV - ENGINEERING FEE PROF SRV - LEGAL FEES $0 0 $0 731 $0 I 8,439 $0 $0 $0 $0 - -- 0 - -- 213- 46522 - 430400 126 0 13,041 213- 46522 - 431990 MISC PROFESSIONAL SERVICES LEGAL NOTICE PUBLICATION 527 396 22 2,765 21,051 1 0 63,670 100.00% 213- 46522 - 435100 17 113 26 25 213 - 46522 - 436200 PROPERTY INSURANCE 0 0 0 0 0 213- 46522- 437100 PROPERTY TAXES 0 0 1,860 1,757 0 3,015 - -- 213- 46522- 438100 ELECTRIC 0 0 0 0 0 213- 46522 - 438300 GAS 0 4,264 0 0 0 - -- 213- 46522- 443990 MISC OTHER EXPENSE 0 0 153 0 0 3,476 213- 46522 - 451010 LAND 0 0 0 0 0 941,084 213- 46522 - 460300 DEBT SRV PRINCIPAL -SHRT TE 0 0 0 0 0 0 0 - -- 213- 46522- 461300 DEBT SRV INTEREST-SHIRT TER 0 0 0 0 0 - -- 213- 46522- 462010 FISCAL AGENTS' FEES 0 0 0 0 0 - -- 213- 46522 - 465010 TIF LOAN 32,334 21,656 0 0 0 - -- 213- 46522- 465110 TIF PAYBACK INSTALLMENTS 5,106 21,656 103,167 61,487 61,487 63,312 63,312 2.97% 213 - 46522- 465120 LOCAL CONTRIB - TIF PENALT 0 0 0 0 0 - -- 213- 46522- 472030 TRANSFER TO OTHER FUNDS 0 0 356,179 0 0 378,680 213- 46522- 472030 TRANSFER TO DEBT SERVICE F 0 0 0 1 0 0 --- I TOTAL EXPENDITURES $37,984 $48,725 $472,676 $84,447 $61,512 $1,466,278 $63,312 2.93% EDA FUND 2008 2009 2010 2011 2012 2012 2013 % EDA - TIF 24 TIF #24 - ST BEN'S CENTER ACTUAL ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGET CHANGE 213 - 46524- 430300 PROF SRV - ENGINEERING FEE $0 $0 $0 $0 $0 - -- 213- 46524- 430400 PROF SRV - LEGAL FEES 0 34 61 0 0 - -- 213- 46524- 431990 MISC PROFESSIONAL SERVICES 527 396 0 623 0 649 649 213- 46524 - 435100 LEGAL NOTICE PUBLICATION 17 22 30 26 25 - 100.00% 213 - 46524 - 443990 MISC OTHER EXPENSE 0 0 0 0 0 - -- 213- 46524- 451010 LAND 0 0 0 0 0 - -- 213- 46524- 460300 DEBT SRV PRINCIPAL-SHIRT TE 0 0 0 0 0 - -- 213- 46524- 461300 DEBT SRV INTEREST-SHIRT TER 0 0 0 0 0 - -- 213- 46524- 462010 FISCAL AGENTS' FEES 0 0 0 0 0 - -- 213- 46524 - 465010 TIF LOAN 0 0 0 0 0 - -- 213- 4_6524- 465110 TIF PAYBACK INSTALLMENTS 22,560 46,798 67,579 42,321 42,320 42,320 43,986 3.94 21 3 - 46524 - 465120 LOCAL CONTRIB - TIF PENALT 0 0 0 0 0 - -- 213- 46524- 472030 TRANSFER TO DEBT SERVICE F 0 0 0 0 0 - -- TOTAL EXPENDITURES $23,104 $47,250 $67,670 $42,970 $42,345 $42,969 $44,635 5.41% EDA FUND 2008 2009 2010 2011 2012 2012 2013 % EDA - TIF 29 TIF #29 - FRONT PORCH ACTUAL ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGET CHANGE 213 - 46529 - 430300 PROF SRV - ENGINEERING FEE $0 $0 $0 $0 $0 --- 213-46529-430400 PROF SRV - LEGAL FEES 216 34 61 0 0 - -- 213- 46529- 431990 MISC PROFESSIONAL SERVICES 527 396 0 623 0 649 649 213- 46529 - 435100 LEGAL NOTICE PUBLICATION 17 22 30 26 25 -100.00% 213 - 46529- 443990 MISC OTHER EXPENSE 0 0 0 0 0 - -- 213- 46529 - 451010 LAND 0 0 0 0 0 - -- 213- 46529 - 460300 DEBT SRV PRINCIPAL-SHIRT TE 0 0 0 0 0 - -- 213- 46529- 461300 DEBT SRV INTEREST-SHIRT TER 0 0 0 0 0 - -- 213- 46529- 462010 FISCAL AGENTS' FEES 0 0 0 0 0 - -- 213- 46529- 465010 TIF LOAN 0 0 0 0 0 - -- 213- 46529 - 465110 TIF PAYBACK INSTALLMENTS 11,501 27,472 32,499 19,296 19,300 19,300 20,370 5.54% 213 - 46529- 465120 LOCAL CONTRIB - TIF PENALT 0 0 0 0 0 - -- 213- 46529- 472030 TRANSFER TO DEBT SERVICE F 0 0 0 0 0 - -- TOTAL EXPENDITURES $12,261 $27,924 $32,590 $19,945 $19,325 $19,949 $21,019 8.77% EDA FUND 2008 2009 2010 2011 2012 2012 2013 % EDA - TIF 30 TIF #30 -CMHP ACTUAL ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGET CHANGE 213 - 46530- 430300 PROF SRV - ENGINEERING FEE $0 $0 $0 $0 $0 - -- 213- 46530 - 430400 PROF SRV - LEGAL FEES MISC PROFESSIONAL SERVICES LEGAL NOTICE PUBLICATION 0 0 61 0 0 - -- 213- 46530 - 431990 527 430 0 623 0 650 650 213- 46530- 435100 18 22 30 26 25 - 100.00% 213 - 46530 - 443990 MISC OTHER EXPENSE 0 0 0 0 0 - -- 213- 46530- 451010 LAND 0 0 0 0 0 - -- 213- 46530- 460300 DEBT SRV PRINCIPAL-SHIRT TE 6,439 6,708 5,809 4,037 4,237 0 0 -100.00% 213 - 46530 - 461300 DEBT SRV INTEREST-SHIRT TER 4,404 4,243 4,075 3,930 3,827 6,945 6,945 81.47% 213 - 46530- 462010 FISCAL AGENTS' FEES 0 0 0 0 0 - -- 213- 46530- 465010 TIF LOAN 0 0 0 0 0 - -- 213- 46530 - 465110 TIF PAYBACK INSTALLMENTS 0 0 0 0 0 - -- 213- 46530- 465120 LOCAL CONTRIB - TIF PENALT 0 0 0 0 0 - -- 213- 46530- 472030 TRANSFER TO DEBT SERVICE F 0 0 0 0 0 - -- TOTAL EXPENDITURES $11,388 $11,403 $9,975 $8,616 $8,089 $7,595 $7,595 -6.11% EDA FUND 2008 2009 2010 2011 2012 2012 2013 % EDA - TIF 34 213 -46534- 430300 TIF #34 -194/INTERCHANGE ACTUAL ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGET CHANGE PROF SRV - ENGINEERING FEE $0 $0 $0 $0 $0 - -- 213- 46534- 430400 PROF SRV - LEGAL FEES 0 34 61 0 0 EDA Budget - 4 213 - 46534- 431990 MISC PROFESSIONAL SERVICES 527 396 0 0 0 75 75 - -- 213- 46534- 435100 LEGAL NOTICE PUBLICATION 17 22 30 26 25 25 25 0.00% 213 - 46534 - 443990 MISC OTHER EXPENSE 0 0 0 0 0 - -- 213- 46534- 451010 LAND 0 0 0 0 0 - -- 213- 46534- 460300 DEBT SRV PRINCIPAL -SHRT TE 0 0 0 0 0 - -- 213- 46534- 461300 DEBT SRV INTEREST -SHRT TER 0 0 0 0 0 --- 213-46534-462010 FISCAL AGENTS' FEES 0 0 0 0 0 --- 213-46534-465010 TIF LOAN 0 0 0 0 1 0 - -- 213- 46534- 465110 TIF PAYBACK INSTALLMENTS 0 0 0 0 0 213- 46534- 465120 LOCAL CONTRIB - TIF PENALT 0 0 0 0 0 - -- 213- 46534- 472030 TRANSFER TO DEBT SERVICE F 319,272 318,274 317,277 316,279 320,584 320,584 319,403 -0.37% TOTAL EXPENDITURES $319,816 $318,726 $317,368 $316,305 $320,609 $320,684 $319,503 -0.34% EDA FUND 2008 2009 2010 2011 2012 2012 2013 % EDA - TIF 35 TIF #35 - LANDMARK SQUARE II ACTUAL ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGET CHANGE 213 - 46535- 430300 PROF SRV - ENGINEERING FEE $0 $0 $0 $0 $0 - -- 213- 46535- 430400 PROF SRV - LEGAL FEES 0 34 61 0 0 - -- 213- 46535- 431990 MISC PROFESSIONAL SERVICES 526 396 0 0 0 - -- 213- 46535- 435100 LEGAL NOTICE PUBLICATION 18 22 30 26 25 27 27 8.00% 213 - 46535 - 443990 MISC OTHER EXPENSE 0 0 0 0 0 - -- 213- 46535 - 451010 LAND 0 0 0 0 0 - -- 213- 46535- 460300 DEBT SRV PRINCIPAL -SHRT TE 0 0 0 0 0 - -- 213- 46535- 461300 DEBT SRV INTEREST-SHIRT TER 0 0 0 0 0 - -- 213- 46535- 462010 FISCAL AGENTS' FEES 0 0 0 0 0 - -- 213- 46535 - 465010 TIF LOAN 0 0 0 0 0 - -- 213- 46535- 465110 TIF PAYBACK INSTALLMENTS LOCAL CONTRIB - TIF PENALT 0 0 0 0 0 213 - 46535- 465120 0 0 0 0 0 - -- 213- 46535- 472030 TRANSFER TO DEBT SERVICE F 0 0 0 0 0 - -- TOTAL EXPENDITURES $544 $452 $91 $26 $25 $27 $27 8.00% EDA FUND 2008 2009 2010 2011 2012 2012 2013 % EDA - TIF 36 TIF #36- DAHLHEIMER DIST ACTUAL ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGET CHANGE 213 - 46536 - 430300 PROF SRV - ENGINEERING FEE $0 $0 $0 $0 $0 - -- 213- 46536 - 430400 PROF SRV - LEGAL FEES 0 34 1,918 0 0 - -- 213- 46536- 431990 MISC PROFESSIONAL SERVICES 527 396 0 0 0 475 475 - -- 213- 46536 - 435100 LEGAL NOTICE PUBLICATION 18 22 30 26 25 25 25 0.00% 213 - 46536- 443990 MISC OTHER EXPENSE 0 0 0 0 0 - -- 213- 46536 - 451010 LAND 0 0 0 0 0 --- 213-46536-460300 DEBT SRV PRINCIPAL-SHIRT TE 49,523 0 0 0 43,990 43,990 51,527 17.13 213 - 46536 - 461300 DEBT SRV INTEREST-SHIRT TER 14,275 0 0 0 17,785 17,785 13,889 - 21.91% 213 - 46536- 462010 FISCAL AGENTS' FEES 0 0 0 0 0 - -- 213- 46536 - 465010 TIF LOAN 0 0 0 0 0 - -- 213- 46536- 465110 TIF PAYBACK INSTALLMENTS 0 64,141 64,776 64,776 0 - -- 213- 46536- 465120 213- 46536- 472030 LOCAL CONTRIB - TIF PENALT TRANSFER TO DEBT SERVICE F 0 0 0 0 0 0 - -- 0 1 0 0 0 - -- TOTAL EXPENDITURES EDA FUND TIF #37- KARLSBURGER FOODS $64,343 $64,593 $66,724 $64,802 $61,800 $62,275 $65,916 6.66% 2008 2009 2010 2011 2012 2012 2013 % EDA - TIF 37 ACTUAL ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGET CHANGE 213 - 46537 - 430250 PROF SRV - CONSTRUCTION CO $0 $0 $0 $0 $0 213- 46537- 430300 PROF SRV - ENGINEERING FEE 0 0 0 0 0 - -- 213- 46537 - 430400 PROF SRV - LEGAL FEES 0 34 61 0 0 - -- 213- 46537 - 431990 MISC PROFESSIONAL SERVICES 527 396 0 0 0 475 475 - -- 213- 46537- 435100 LEGAL NOTICE PUBLICATION 17 22 30 27 25 25 25 0.00% 213 - 46537- 443990 MISC OTHER EXPENSE 0 0 0 0 0 - -- 213- 46537- 451010 LAND 0 0 0 0 0 - -- 213- 46537 - 460300 DEBT SRV PRINCIPAL-SHIRT TE 18,687 0 0 0 0 0 0 - -- 213- 46537- 461300 DEBT SRV INTEREST-SHIRT TER 4,619 0 0 0 1 0 4,195 3,043 - -- 213- 46537- 462010 FISCAL AGENTS' FEES 0 0 0 0 0 - -- 213- 46537- 465010 TIF LOAN 0 0 0 0 0 - -- 213- 46537- 465110 TIF PAYBACK INSTALLMENTS 0 24,787 23,796 24,787 24,787 23,406 3,543 - 85.71% 213 - 46537- 465120 LOCAL CONTRIB - TIF PENALT 0 0 0 0 0 --- 213-46537-472030 TRANSFER TO DEBT SERVICE F 0 0 0 0 0 - -- TOTAL EXPENDITURES $23,850 $25,239 $23,887 $24,814 $24,812 $28,101 $7,086 - 71.44% EDA FUND 2008 2009 2010 2011 2012 2012 2013 % EDA - TIF 38 TIF #38 - WALKER IN -STORE ACTUAL ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGET CHANGE 213 - 46538 - 430300 PROF SRV - ENGINEERING FEE $0 $0 $0 $0 $0 - -- 213- 46538- 430400 PROF SRV - LEGAL FEES 131 34 61 0 0 - -- 213- 46538- 431990 MISC PROFESSIONAL SERVICES 573 396 0 0 0 - -- 213- 46538 - 435100 LEGAL NOTICE PUBLICATION 0 22 30 27 25 25 26 4.00% 213 - 46538- 443990 MISC OTHER EXPENSE 0 0 0 0 0 - -- 213- 46538 - 451010 LAND 0 0 0 0 0 - -- 213- 46538 - 460300 DEBT SRV PRINCIPAL -SHRT TE 0 0 0 0 0 - -- 213- 46538- 461300 DEBT SRV INTEREST-SHIRT TER 0 0 0 0 0 - -- 213- 46538 - 462010 FISCAL AGENTS' FEES 0 0 0 0 0 - -- 213- 46538 - 465010 TIF LOAN 0 0 0 0 0 - -- 213- 46538 - 465110 TIF PAYBACK INSTALLMENTS 0 12,605 12,604 12,604 12,604 12,604 12,017 -4.66 213 - 46538- 465120 LOCAL CONTRIB - TIF PENALT 0 0 0 0 0 - -- 213- 46538- 472030 TRANSFER TO DEBT SERVICE F 0 0 0 0 0 - -- TOTAL EXPENDITURES $704 $13,057 $12,695 $12,631 $12,629 $12,629 $12,043 -4.64% EDA Budget - 5 EDA Budget - 6 EDA FUND 2008 2009 2010 2011 2012 2012 2013 % TIF 1 -39 SMC TIF 1 -39 SMC ACTUAL ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGET CHANGE 213 - 46539- 430300 PROF SRV - ENGINEERING FEE $0 0 $0 $0 $6,734 $0 $0 $0 - -- - -- 213- 46539 - 430400 PROF SRV - LEGAL FEES 0 0 5,410 0 0 0 213- 46539 - 431990 MISC PROFESSIONAL SERVICES 0 0 0 29,743 0 0 0 - -- 213- 46539 - 435100 LEGAL NOTICE PUBLICATION 0 0 0 461 0 0 0 - -- 213- 46539 - 436200 PROPERTY INSURANCE 0 0 0 0 0 0 0 213- 46539 - 438100 ELECTRIC 0 0 0 0 0 0 0 - -- 213- 46539- 438300 GAS 0 0 0 0 0 0 0 213- 46539- 443990 MISC OTHER EXPENSE 0 0 0 211 0 0 0 --- 213-46539-451010 LAND 0 0 0 0 0 0 0 --- 213-46539-460300 DEBT SRV PRINCIPAL-SHIRT TE 0 0 0 0 0 0 0 213- 46539- 461300 DEBT SRV INTEREST-SHIRT TER 0 0 0 0 0 0 0 - -- 213- 46539 - 462010 FISCAL AGENTS' FEES 0 0 0 0 0 0 0 - -- 213- 46539- 465010 TIF LOAN 0 0 0 0 0 0 0 - -- 213- 46539- 465110 TIF PAYBACK INSTALLMENTS 0 0 0 0 0 0 0 213- 46539 - 465120 LOCAL CONTRIB - TIF PENALT 0 0 0 0 0 0 0 - -- 213- 46539- 472030 TRANSFER TO OTHER FUNDS 0 0 0 0 0 0 0 - -- 213- 46539 - 472030 TRANSFER TO DEBT SERVICE F 0 1 0 0 0 0 1 0 0 - -- TOTAL EXPENDITURES $0 $0 $0 $42,559 $0 $0 $0 #DIV /0! EDA FUND 2008 2009 2010 2011 2012 2012 2013 % EDA TIF 22 -1 TIF 22.1 - FLUTH /CUB FOODS ACTUAL ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGET CHANGE 213 - 46581- 430300 PROF SRV - ENGINEERING FEE $0 $0 $0 $0 $0 - -- 213- 46581- 430400 PROF SRV - LEGAL FEES 0 0 0 0 0 - -- 213- 46581- 431990 MISC PROFESSIONAL SERVICES 0 0 0 0 0 - -- 213- 46581- 435100 LEGAL NOTICE PUBLICATION 0 0 0 0 0 - -- 213- 46581- 436200 PROPERTY INSURANCE 0 0 0 0 0 - -- 213- 46581 - 438100 ELECTRIC 0 0 0 0 0 - -- 213- 46581- 438300 GAS 0 0 0 0 0 - -- 213- 46581- 443990 MISC OTHER EXPENSE 0 0 0 0 0 - -- 213- 46581 - 451010 LAND 0 0 0 0 0 - -- 213- 46581- 460300 DEBT SRV PRINCIPAL-SHIRT TE 0 0 0 0 0 - -- 213- 46581- 461300 DEBT SRV INTEREST-SHIRT TER 0 0 0 0 1 0 --- 213-46581-462010 FISCAL AGENTS' FEES 0 0 0 0 0 --- 213-46581-465010 TIF LOAN 0 0 0 0 0 - -- 213- 46581- 465110 TIF PAYBACK INSTALLMENTS 0 10,283 86,214 51,284 51,284 52,808 52,808 2.97% 213 - 46581- 465120 LOCAL CONTRIB - TIF PENALT 0 0 0 0 0 - -- 213- 46581- 472030 TRANSFER TO DEBT SERVICE F 0 0 0 0 0 TOTAL EXPENDITURES $0 $10,283 $86,214 $51,284 $51,284 $52,808 $52,808 2.97% EDA FUND TIF 22.5 - AMOCO 2008 2009 2010 2011 2012 2012 2013 BUDGET % CHANGE EDA TIF 22 -5 ACTUAL ACTUAL ACTUAL ACTUAL BUDGET PROJECTED 213 - 46585 - 430300 PROF SRV - ENGINEERING FEE PROF SRV - LEGAL FEES $0 $0 $0 $0 $0 - -- - -- 213- 46585- 430400 0 0 0 0 0 213- 46585 - 431990 MISC PROFESSIONAL SERVICES LEGAL NOTICE PUBLICATION 0 0 0 0 0 213- 46585- 435100 0 0 0 0 0 - -- 213- 46585 - 436200 PROPERTY INSURANCE 0 0 0 0 0 - -- 213- 46585 - 438100 ELECTRIC 0 0 0 0 0 - -- 213- 46585 - 438300 GAS 0 0 0 0 0 - -- 213- 46585- 443990 MISC OTHER EXPENSE 0 0 0 0 0 - -- 213- 46585 - 451010 LAND 0 0 0 0 0 - -- 213- 46585 - 460300 DEBT SRV PRINCIPAL-SHIRT TE 0 0 0 0 0 213- 46585- 461300 DEBT SRV INTEREST-SHIRT TER 0 0 0 0 0 - -- 213- 46585- 462010 FISCAL AGENTS' FEES 0 0 0 0 0 - -- 213- 46585 - 465010 TIF LOAN 0 0 0 0 0 - -- 213- 46585- 465110 TIF PAYBACK INSTALLMENTS 5,106 11,373 16,953 10,203 10,203 10,504 10,504 2.95% 213 - 46585- 465120 LOCAL CONTRIB - TIF PENALT 0 0 0 0 0 --- 213-46585-472030 TRANSFER TO DEBT SERVICE F 0 0 0 0 0 - -- TOTAL EXPENDITURES $5,106 $11,373 $16,953 $10,203 $10,203 i $10,504 1 $10,504 2.95% EDA Budget - 6 2011 I DIST #6 I I I DIST #21 I D O I DIST I DIST #36 I I PEIRIE O OWN E CM UMC R Ka er WALKER Suburban GMEF I GEAL DIST5 S ID I SQUARE I DTB Foods I Manufacttung I T5 DANCE PRAIRIE I B ND CTS PORCH EDA (TOTALS Fund Balance (deficit) 1/1/11 (per ledger) $362,102 $414,711 $23,336 $135,287 $2,645,051 $28,973 $62,426 $45,093 $71,018 ($93,907) $4,408 1 ($58,695) $2,969 ($5,592) $0 $978,807 $2,725,828 $7,341,815 REVENUE: $9,883 $9,883 Taxes $4,023 $0 Loan Repayments - Principal $24,390 $13,928 $13,928 Loan Repayments-Interest $28 $28 $28 $28 $28 $28 $28 $28 $28 $28 $28 $28 $28 $23,582 $5,474 $29,056 Tax increments $49,007 $77,583 $32,687 $21,201 $325,380 $47,023 $28,206 $11,338 $82,280 $269,290 $68,185 $24,787 $13,596 $10,045 $438 $1,050,563 Interest income $13,113 $15,930 $869 $4,550 $91,528 $470 $1,666 $1,966 $0 $7,642 $415 $1,845 $3,664 ($41) $756) $40,297 $94,316 $277,474 Bond /Loan Proceeds $1,091 $15,281 1 $144 1 $83,015 $0 Sale of Land $42,563 $2,146 $72,615 $72,615 Other Misc. Revenue $393 $393 $2,568 $393 $83,351 $393 $393 $393 $393 $393 $393 $393 $393 $393 $37,253 $37,253 Adj. - 1995 TIF Correction (trx in,debt serv) $52,687 $83,528 $33,299 $18,413 $296,475 $48,873 $25,462 $7,717 $0 $279,177 $0 $68,858 $24,639 $12,650 $0 $10,045 $84,028 $0 Transfer in - Land Sales $2,097 $0 Transfer in from debt service and other funds $466 $62,015 $62,015 TOTAL $62,120 $93,513 $33,556 $25,751 $416,908 $47,493 $29,872 $13,304 $82,280 $276,932 $415 $132,045 $28,451 $13,555 ($756) $63,879 $223,586 $1,542,904 EXPENSES: Salaries Frinoe benefits (PERA.FICA. Health Property taxes Prof. services--le( Prof. services - -en Interest expense - -debt Principal expense - -debt Misc. other expense (incl. Fiscal Agent F TIF loan (pay as you go) Transfer to Land Sales (To HRA General Land acquisition Transfer to other funds - Debt Service Land Acquisition - TIF Surplus TOTALS DIST I I I I DIST #29 I DIST O I DIST I I I DIST #36 I I 5 PIE IDOWNTOWN E CM UMC R Ka er WALKER unI GMEF I GENERAL CONST5 DANCE SHORES WESTEDEV. I B ND CTS PORCH INTERCHG SQUARE DSTB Foods I Manufacttunq EDA ITOTALS Fund Balance (deficit) 1/1/12 (per ledger) $392,905 $508,198 $27,447 $141,953 $2,977,512 $33,496 $72,354 $49,780 $0 ($133,280) $4,796 $8,548 $6,607 ($4,667) ($43,315) $1,042,686 $2,393,631 $7,478,651 REVENUE: $9,883 $9,883 Taxes $4,023 $0 Property Rental $24,390 $1,000 $25,390 Loan Repayments - Principal $28 $28 $28 $28 $28 $28 $28 $28 $28 $28 $28 $28 $28 $672 $0 Loan Repayments- Interest $10,045 $438 $10,045 Tax increments $52,687 $83,528 $33,299 $18,413 $314,648 $48,873 $25,462 $7,717 $279,177 $68,858 $24,639 $12,650 1 $969,951 Interest income $1,091 $15,281 $144 $83,015 $83,015 Other Misc. Revenue $42,563 $2,146 $13 ($42,550 Transfer in from debt service and other funds $393 $393 $2,568 $393 $83,351 $393 $393 $393 $393 $393 $393 $393 $393 $393 $43,667 $0 TOTAL $52,687 $83,528 $33,299 $18,413 $296,475 $48,873 $25,462 $7,717 $0 $279,177 $0 $68,858 $24,639 $12,650 $0 $10,045 $84,028 $1,045,851 EXPENSES: Salaries $9,883 $9,883 Fringe benefits PERA,FICA, Health $4,023 $4,023 Dues, memberships $4,309 $4,309 Legal publication $28 $28 $28 $28 $28 $28 $28 $28 $28 $28 $28 $28 $28 $672 $1,036 Travel, Conferences, Schools $438 $438 Property taxes $3,015 1 1 $3,015 Prof. services--legal $1,091 $15,281 $144 $9,495 $26,011 Prof. services - -en r $2,146 $4,303 $6,449 Prof. services -- misc., $393 $393 $2,568 $393 $83,351 $393 $393 $393 $393 $393 $393 $393 $393 $393 $43,667 $134,302 Marketing $13,047 $13,047 Interest expense - -debt $2,097 $2,097 Principal expense - -debt $466 $466 Misc. other expense incl. Fiscal Agent Fees $5,317 $3,531 $8,848 TIF loan (pay as you go $6,630 $63,314 $42,958 $17,814 $63,804 $12,604 $207,124 Land acquisition $999,362 $999,362 Transfer to other funds - Debt Service $378,680 $0 $320,584 $699,264 Land Acquisition - TIF Surplus $0 TOTALS $421 $421 $3,687 $9,614 $1,548,348 $43,379 $18,235 $421 $0 $321,005 $421 $64,225 $13,025 $421 $2,683 $0 $93,368 $2,119,674 Fund Balance (deficit 12/31/11 $445,171 $591,305 $57,059 $150,752 $1,725,639 $38,990 $79,581 $57,076 $0 ($175,108) $4,375 $13,181 $18,221 $7,562 ($45,998) $1,052,731 $2,384,291 $6,404,828 Land Held for Resale 2,401,056 2,401,056 Reclassification (890,000) 890,000 - Notes Receivable 203,022 20,000 223,022 Spendable Fund Balance $445,171 $591,305 $57,059 $150,752 $835,639 $38,990 $79,581 $57,076 $0 ($175,108) $4,375 $13,181 $18,221 $7,562 ($45,998) $849,709 $853,235 3,780,750 CITY OF MONTICELLO REDEVELOPMENT PRIORITIES POLICY The Monticello Economic Development Authority (EDA) is committed to redevelopment as an important and necessary tool to maintain the health of the community and encourage economic development. For the purpose of this document, the term "redevelopment" carries abroad definition including, but not limited to, activities associated with neighborhood preservation and revitalization, commercial and industrial stabilization and growth, redevelopment and revitalization of downtown Monticello. The EDA will serve as a catalyst for redevelopment based on the following policies. The community needs for redevelopment will always surpass the ability of the EDA and /or other funding entities to fully finance and/or be a partner in such endeavors. In order to maximize the effect of EDA involvement, redevelopment priorities have been established as illustrated in Attachment I. This priority list and the redevelopment policies will be reviewed and updated by the EDA on an annual basis. 2. The TIF Management Plan, available and applicable grants, and other applicable funding opportunities will be utilized as a guide to evaluate availability of financial resources. The EDA recognizes that redevelopment scenarios are extremely complex and each plan will demand a unique set of solutions. 4. Creation of major redevelopment plans shall include participation by the community including but not limited to, residents, business and property owners, affected government agencies and other stakeholders. Solutions for redevelopment shall be comprehensive in nature and assume market realities. Approved plans shall be positively promoted and endorsed by the City Council, City Boards and staff. 7. The EDA will continue to be innovative in developing creative solutions and resources to meet its redevelopment needs. The EDA will continue to seek outside funding sources to supplement the EDA's financial resources. When seeking EDA and City Council approval for acquisition of property, the following factors will be taken into account: a. Proximity to priority project areas (see Attachment I) b. Reasonable purchase price C. County assessed value d. Recent completed appraisal, if any e. Property key to transportation or public utility projects f. Number and type of existing tenants g. Timeline of new development potential h. Availability and appropriateness of eminent domain 9. Reviewing appropriateness of purchasing property based on the factors outlined in Number 8 will assist in reducing land - banking by the City. 10. The end objectives of redevelopment efforts include: a. Stabilizing and increasing tax base b. Removing influences that can or have negatively affected the community C. Rejuvenating the appearance and perception of a given area d. Leveraging private funding where feasible e. Jobs created and/or retained 11. Redevelopment plans are viewed as inherently flexible and it is recognized that the component parts of a plan may change from time to time in order for it to be implemented within the market place. ADOPTED BY the Monticello Economic Development Authority this 14th day of March, 2012. CITY OF MONTICELLO Bill Demeules, President ATTEST: Megan Barnett Livgard, Executive Director Attachment I — Redevelopment Priorities Primary Activities: Implementation of the Embracing Downtown Plan a. Block 34 b. Block 31 c. Other areas as deemed appropriate and driven by private investment • Redevelopment and revitalization of blighted residential properties Potential Future Activities: • Block 35 • Block 33 • Design enhancements to major intersections and street corridors CITY OF MONTICELLO CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY BUSINESS SUBSIDY CRITERIA I. Purpose This document includes the criteria to be considered by the City of Monticello ( "City ") and the City of Monticello Economic Development Authority ( "EDA ") to evaluate the granting of business subsidies. The intent of the City and EDA in adopting these criteria is to comply with Minnesota Statutes, Sec. I I6J.993- 116J.994 (the "Act "). The City and EDA hereby adopt the definitions contained in the Act for application in the criteria. II. Types of Business Subsidies The EDA shall have the authority to administer the following programs for the granting of business subsidies: 1. Tax Increment Financing (TIF) 2. Greater Monticello Enterprise Fund (GMEF) 3. Small Cities Economic Development Set Aside Fund (ED) The EDA has separately developed guidelines for each of these types of subsidies (the "Guidelines "). To the extent that the Guidelines contain more specific policies for each type of subsidy, those Guidelines control. Notwithstanding anything to the contrary herein, the City (and EDA, subject to City approval) reserve the right to grant any type of business subsidy authorized by law, without limitation. III. Goals and Objectives /Public Purpose It is the City's and EDA's intent to support and comply with the goals and objectives stated in the City of Monticello's Comprehensive Plan in granting business subsidies, and with the public purpose requirements of the Act. The following goals and objectives are general guidelines to assist in determining the granting of a Business Subsidy. The City and EDA recognize that every proposal is unique and nothing in these criteria or in the Business Subsidy policy shall be deemed to be an entitlement. a. Attracting New Businesses & Expanding Tax Base 1. Increase in tax base. (Cannot be the only criteria.) 2. Promote and enhance industrial and commercial diversity b. Attracting New Jobs & Job Retention 1. Jobs and Wages. It is the City's and EDA's goal that the subsidy recipient will create the maximum number of livable wage jobs possible. (The business subsidy agreement must include numbers and wages to be achieved within two years of the benefit date.) 2. Jobs and wages in this context may include jobs to be retained but only if job loss is "imminent and demonstrable ". C. Business Retention: Promote and maintain industrial and commercial diversity. d. Enhancing Downtown: Promote revitalization and redevelopment e. Facilitating Redevelopment: Promote redevelopment objectives and removal of blight, including pollution cleanup. L Housing: Diversify the housing stock available within the community. 2 IV. Subsidy Agreement. In the implementation of any subsidy granted by City or EDA, the parties will be required to enter into a formal agreement which identifies the amount and nature of the subsidy and articulates the goals and objectives which are intended to be implemented. In addition, the agreement must establish the number of full -time or part-time jobs and the wages for those jobs which are to be established (or retained) within two years of the benefit date. The agreement must also contain a penalty for failure to meet those goals. Finally, the agreement will require that the recipient continue operations at the site for at least five years. V. Compliance and Reporting Requirements. It will be necessary for both the recipient and the City or EDA to comply with the reporting and monitoring requirements of the statute. VI. History. Public Hearing held by the EDA on March 11, 2009 approved on March 11, 2009. Public Hearing held by the City Council on March 23, 2009, approved on March 23, 2009. 3 4m, MONTICELLO GREATER MONTICELLO ENTERPRISE FUND GUIDELINES 1. PURPOSE The purpose of the Greater Monticello Enterprise Fund (GMEF) is to encourage economic development by supplementing conventional financing sources available to existing and new businesses. This program is administered by the City of Monticello Economic Development Authority (EDA) and participating lending institution(s). GMEF Loans are made to businesses to help them meet a portion of their financing needs. The loans are meant to be a secondary source of financing, provide gaps in private financing, and assist in securing other grants. All loans must meet four or more of the criteria established in the Definition of Public Purpose section. 2. ORGANIZATION The Greater Monticello Enterprise Fund is administered by the EDA. It is the responsibility of the EDA to assure that loans meet the public purpose standard and comply with all other GMEF policies as defined in this document. 3. GMEF GUIDELINE MODIFICATION At a minimum, the EDA shall review the guidelines on an annual basis. Changes to the GMEF guidelines require approval by the City Council. 4. DEFINITION OF PUBLIC PURPOSE GMEF Loans must meet at least one (1) of the following public purposes (if the EDA finds that the public purpose described in b. is met, the EDA must find that the GMEF Loan meets at least one additional public purpose): a. To provide loans for credit -worthy businesses which create new jobs. 1. One job is equivalent to a total of 37.5 hours per week. 2. At least 90% of the jobs created must pay at least 160% of the federal minimum wage, exclusive of benefits, for individuals over the age of 20 during the term of assistance. Annual written reports are required until repayment of the assistance. Failure to meet the job and wage level goals requires partial or full repayment of the assistance with interest. b. To provide loans for credit -worthy businesses that would increase the community tax base. c. To provide loans to credit -worthy industrial or commercial businesses (new or existing) that would allow the ability to improve or expand their operation. Factors including but not limited to the following will be taken into account: 1. Type and size of the business 2. Product or service involved 3. Present availability of the product or service within the City of Monticello 4. Compatibility of the proposed business as it relates to the comprehensive plan and existing zoning policies, 5. Potential for adverse environmental effects of the business, if any. d. In the event job creation is not a viable option, credit -worthy businesses have the ability to demonstrate public purpose by means of job retention. 5. GREATER MONTICELLO ENTERPRISE FUND POLICIES a. Business Eli ig bilityj 1. Industrial and commercial businesses. 2. Businesses currently located or to be located within the City of Monticello. 3. Credit -worthy existing businesses. 4. Start-up businesses with worthy business plan and/or pro forma in a form acceptable to the EDA (historically non credit -worthy businesses will be denied). b. Acceptable Private Financing Methods: 1. Companion Direct Loan: The GMEF is subordinate to the primary lender. 2. Participation Loan: The GMEF participates in a portion of the loan. 3. Guarantee Loans: The GMEF guarantees a portion of the bank loan. a. Interest rate cap is subject to EDA approval c. Use of Proceeds: 1. Real property acquisition, development, & rehabilitation improvement costs including but not limited to the following: a. Land Acquisition b. Engineer/Design Inspection Fees c. Building Permit Fees d. Architect Fees e. Building Materials f. Soil Borings g. Construction Labor h. Appraisal Fees I . Landscaping J . Legal Fees 2 k. Grading 1. Environmental Study m. Curbing/Parking Lot n. Recording Fees o. Title Insurance 2. Machinery and equipment: a. Personal property used as an integral part of the manufacturing or commercial business, with a useful life of at least three years. Acquisition costs would include freight and sales taxes paid. As a general rule, office equipment would not qualify. d. Terms and conditions: 1. Loan Size: Minimum of $25,000 and maximum not to exceed 50% of the remaining GMEF balance 2. Leveraging: Minimum 60% private /public Non -GMEF, Maximum 30% GMEF, Minimum 10% equity. 3. Loan Term: Personal property term not to exceed life of equipment (generally 5 -7 years). Real estate property maximum of 5 -year maturity amortized up to 30 years. Balloon payment at 5 years. 4. Interest Rate: Fixed rate not less than 2% below prime rate as published in the Wall Street Journal on date of EDA loan approval, with a minimum interest rate of 3.0 %. 5. Loan Fee: Minimum of $500 but not to exceed 1.5% of the total loan. Fees are to be documented and no duplication of fees between the lending institution and the GMEF. Loan fee may be incorporated into project cost. EDA retains the right to reduce or waive loan fee or portion of loan fee. Fee to be paid by applicant to the EDA within 5 working days after City Council approval of GMEF loan. The fee is non - refundable. e. Pre - payment Polices No penalty for pre - payment £ Deferral of Payments: 1. Extending a balloon payment will require a verification letter from two lending institutions stating the inability to refinance and is subject to approval by the EDA. 2. Monthly payments may be deferred for a determined period of time upon approval by the EDA. g. Late Payment Polices 1. Failure to pay principal or interest when due may result in the loan being immediately called. In addition to any other amounts due on any loan, and without waiving any right of the Economic Development Authority under any applicable documents, a late fee of $250 will be 3 imposed on any borrower for any payment not received in full by the Authority within 30 calendar days of the date on which it is due. Furthermore, interest will continue to accrue on any amount due until the date on which it is paid to the Authority, and all such interest will be due and payable at the same time as the amount on which it has accrued. h. Assumability of Loan: None i. Business Equity Requirements: Subject to type of loan. The EDA will determine appropriate and applicable business equity requirements on a case by case analysis, utilizing normal lending guidelines. j. Collateral: 1. Liens on real property in project (mortgage deed). 2. Liens on real property in business (mortgage deed). 3. Liens on real property held personally (subject to EDA approval, homestead exempt). 4. Machinery and equipment liens (except equipment exempt from bankruptcy). 5. Personal and /or corporate guarantees (requires unlimited personal guarantees). k. Non - Performance: An approved GMEF loan shall be null and void if funds are not drawn upon or disbursed within 180 days from date of City Council approval. 1. Non - Performance Extension: 1. The 180 -day non - performance date can be extended up to an additional 120 days, upon approval by the EDA. 2. A written request must be received 30 days prior to expiration of the 180 -day non - performance date. m. Out of Pocket Fees: Responsibility of the GMEF applicant. n. Equal Opportunity: The Greater Monticello Enterprise Fund is operated as an equal opportunity program. All applicants shall have equal access to GMEF funds regardless of race, sex, age, marital status, or other personal characteristics o. Participating Lending Institution(s): 1. Participating lending institution(s) shall be determined by the GMEF applicant. 2 2. Participating lending institution(s) shall cooperate with the EDA and assist in carrying out the policies of the GMEF as approved by the City Council. 3. Participating lending institution(s) shall analyze the formal application and indicate to the EDA the level at which the lending institution will participate in the finance package. p. Loan Administration: 1. City Staff shall collect applicable GMEF payments. 2. City Staff shall assure City compliance with all applicable terms and conditions of the approved loan. 3. All loan documents shall include the following: a. Definition of loan default, agreements regarding notification of default b. Copy of primary lenders documents C. Provisions allowing the City to inquire on the status of the primary loan 6. LOAN APPLICATION PROCEDURES The EDA desires to make the GMEF loan application process as simple as possible. However, certain procedures must be followed prior to EDA consideration of a loan request. Information regarding the program and procedures for obtaining a loan are as follows: a. Cit. Staff. City Staff shall carry out GMEF operating procedures as approved by the EDA and City Council. Staff is responsible for assisting businesses in the loan application process and will work closely with applicants in developing the necessary information. b. Application Process: 1. Applicant shall complete a preliminary loan application. Staff will review application for consistency with the policies set forth in the Greater Monticello Fund Guidelines. 2. If applicant gains initial support from lending institution and if the preliminary loan application is approved, applicant is then asked to complete a formal application. Formal application shall include a business plan which will include its management structure, market analysis, and financial statement. Like documentation necessary for obtaining the bank loan associated with the proposal is acceptable. Attached with each formal application is a written release of information executed by the loan applicant 3. If the preliminary loan application is not approved by staff, the applicant may request that the EDA consider approval of the preliminary application at the next regularly scheduled meeting of the EDA. 4. City staff shall analyze the formal application and financial statements contained therein to determine if the proposed business and finance plan is viable. City staff shall submit a written recommendation to the EDA. A decision regarding the 5 application shall be made by the EDA within 60 days of the submittal of a completed formal application. 5. The EDA shall have authority to approve or deny loans; however, within 21 days of EDA action, the City Council may reverse a decision by the EDA, if it is determined by the City Council that such loan was denied/approved in violation of GMEF guidelines. 6. Prior to issuance of an approved loan, the EDA Attorney shall review and/or prepare all contracts, legal documents, and inter - creditor agreements. After such review is complete, the City shall issue said loan. 7. REPORTING City Staff shall submit to the EDA and City Council a semiannual report detailing the balance of the Greater Monticello Enterprise Fund. ■__ •►_ Public Hearing and Adoption the 31st day of August, 1999 Public Hearing and Adoption of Amendments the 8th day of November 2000 Public Hearing and Adoption of Amendments the 24th day of April 2001 Public Hearing and Adoption of Amendments the 13th day of December 2005 Public Hearing and Adoption the 23rd day of March, 2009 0 MONTICELLO SMALL CITIES ECONOMIC DEVELOPMENT SET - ASIDE REVOLVING LOAN FUND GUIDELINES I. PURPOSE: The City of Monticello ( "City ") has received a grant through the Community Development Block Grant Economic Development Set Aside program (the "Program ") administered through the Department of Employment and Economic Development ( "DEED "). The grant may be used to make loans to local businesses as described below. As the recipient of a grant through the Program, the City is authorized to keep all of the principal repayments and interest on the loans it makes. The City is required to use these funds to create a revolving loan fund ( "RLF ") and to establish policies and procedures for the RLF. The City Council administers the RLF. Once the RLF funds have been re- issued as new loans, RLF loan repayments may be redirected to the Greater Monticello Enterprise Fund ( "GMEF ") administered by the City of Monticello Economic Development Authority ( "EDA "). II. PURPOSE OF THE REVOLVING LOAN FUND Revolving loan funds are to be used for business start ups, expansions, and retention where jobs are created or retained. This may be accomplished by the following means: 1.) Creation or retention of permanent private- sector jobs in order to create above average economic growth; 2.) Stimulation or leverage of private investment to ensure economic renewal and competitiveness; 3.) Increase to the local tax base; 4.) Improvement of employment and economic opportunity for citizens in the region to create a reasonable standard of living; and 5.) Stimulation of productivity growth through improved manufacturing or new technologies. III. ELIGIBLE EXPENDITURES RLF's may be used to provide assistance for infrastructure, loans, loan guarantees, interest buy- downs, and other forms of participation with private sources of financing. The RLF assistance can be for no more than one -half of the cost of the project. The RLF is subject to all of the state and federal CDBG requirements, as described in Exhibits A and B attached. However, once the loan funds have cycled through the RLF and are redirected to the GMEF, the funds will no longer be subject to federal CDBG requirements. IV. ELIGIBLE PROJECTS The grant or loan must be based on one or more of the following criteria: 1.) Creation of new jobs or retention of existing jobs; 2.) Increase in the tax base; 3.) Investment of public dollars inducing private investment; 4.) Excessive public infrastructure or improvement cost beyond the means of the affected community and private participants in the project; 5.) Higher wage levels to the community or added value to current workforce skills; 6.) Necessity of assistance to retain existing business; and 7.) Necessity of assistance to attract out -of -state business. The grant or loan cannot be made based solely on a finding that the conditions in clause 2.), 6.) or 7.) exist. A finding must be made that a condition in clause 1.), 3.), 4.), or 5.) also exists. V. ELIGIBLE ACTIVITIES RLF's may be used for the following activities: 1.) Purchase of land 2.) Construction of a building or other improvements 3.) Renovation of an existing building to accommodate the business 4.) Construction of tenant improvements 5) Purchase of Capital Equipment 6.) Lease or purchase of an existing building 7.) Site improvements 8.) Public improvements and privately owned utilities 9.) Workforce Development including job training and placement: a.) Training low skilled, low- income persons for specific jobs for which they have been hired and which require skill levels beyond what they now have; b.) Training a pool of low- income prospective employees for specific jobs being created as a result of a CDBG - funded industrial expansion, where the employer agrees to give first consideration to filling the new positions with people from this pool; c.) Re- training existing employees of a business as part of a project which qualifies as retaining jobs. 10.) Microenterprise Assistance: RLF assistance can be provided to persons owning or developing a microenterprise, which is defined as a commercial enterprise that has 5 or fewer employees, one or more of whom owns the enterprise. VI. INELIGIBLE ACTIVITIES RLF assistance may not be used for the following: 1.) Operation or expansion of a casino. 2.) For a project related to a sports facility. "Sports facility" means a building that has a professional sports team as a principal tenant. 3.) General promotion of the community. 4.) Professional sports teams. 5.) Privately owned recreational facilities that serve a predominantly higher income clientele where the benefit to users clearly outweighs the benefit of jobs created or retained. 6.) Acquisition of land for which a specific use has not been identified (i.e. land banking) 7.) Assistance to a for -profit business that is, or its owner is, the subject of unresolved findings of noncompliance related to previous CDBG assistance. 8.) For relocation of an out of state business. 9.) New housing construction. 10.) Planning for economic development projects. 11.) Job training that is not part of a CDBG eligible economic development activity to create or retain permanent jobs. 12.) Working capital. VII. PUBLIC BENEFIT A project using RLF funds must show a minimum level of public benefit. The amount of the assistance must not exceed $50,000 per full -time equivalent, permanent job (created or retained). If the City finds, after a public hearing, that the primary purpose of the project is not job creation, this provision is not applicable. VIII. PROJECT COSTS AND FINANCIAL REQUIREMENTS A. Acceptable Private Financing Methods: 1. Companion Direct Loan: The RLF is subordinate to the primary lender. 2. Participation Loan: The RLF participates in a portion of the loan. 3. Guarantee Loans: The RLF guarantees a portion of the bank loan. a. Interest rate cap is subject to City approval B. Terms and Conditions: 1. Leveraging: Minimum 60% private /public Non -RLF, Maximum 30% RLF, Minimum 10% equity. 2. Loan Term: Personal property term not to exceed life of equipment (generally 5 -7 years). Real estate property maximum of 5 -year maturity amortized up to 30 years. Balloon payment at 5 years. 3. Interest Rate: Fixed rate not less than 2% below prime rate as published in the Wall Street Journal on date of RLF loan approval, with a minimum interest rate of 3.0 %. 4. Loan Fee: Minimum of $500 but not to exceed 1.5% of the total loan. Fees are to be documented and no duplication of fees between the lending C. Other: institution and the RLF. Loan fee may be incorporated into project cost. City retains the right to reduce or waive loan fee or portion of loan fee. Fee to be paid by applicant to the City within 5 working days after City Council approval of RLF loan. The fee is non - refundable. No penalty for prepayment of loan in whole or in part. 2. Extending a balloon payment will require a verification letter from two lending institutions stating the inability to refinance and is subject to approval by the City. 3. Monthly payments may be deferred for a determined period of time upon approval by the City Council. 4. Failure to pay principal or interest when due may result in the loan being immediately called. In addition to any other amounts due on any loan, and without waiving any right of the City under any applicable documents, a late fee of $250 will be imposed on any borrower for any payment not received in full by the City within 30 calendar days of the date on which it is due. Furthermore, interest will continue to accrue on any amount due until the date on which it is paid to the City, and all such interest will be due and payable at the same time as the amount on which it has accrued. 5. RLF Loans are not assumable. 6. The City will determine appropriate and applicable business equity requirements on a case by case analysis, utilizing normal lending guidelines, subject to the type of assistance. 7. Collateral may include: i. Liens on real property in project (mortgage deed). ii. Liens on real property in business (mortgage deed). iii. Liens on real property held personally (subject to City approval, homestead exempt). iv. Machinery and equipment liens (except equipment exempt from bankruptcy). v. Personal and/or corporate guarantees (requires unlimited personal guarantees). 8. An approved RLF loan shall be null and void if funds are not drawn upon or disbursed within 180 days from date of City Council approval. i. The 180 -day non - performance date can be extended up to an additional 120 days, upon approval by the City. ii. A written request must be received 30 days prior to expiration of the 180 -day non - performance date. 9. Legal fees are the responsibility of the RLF applicant. 10. Participating Lending Institutions: i. shall be determined by the RLF applicant ii. shall cooperate with the City and assist in carrying out the policies of the RLF as approved by the City Council. iii. Shall analyze the formal application and indicate to the City the level at which the lending institution will participate in the finance package. 11. Loan Administration: i. City Staff shall collect applicable RLF payments ii. City Staff shall assure City compliance with all applicable terms and conditions of the approved loan. iii. All loan documents shall include the following: a) Definition of loan default, agreements regarding notification of default b) Copy of primary lenders documents c) Provisions allowing the City to inquire on the status of the primary loan IV. LOAN APPLICATION PROCEDURES The City desires to make the RLF loan application process as simple as possible. However, certain procedures must be followed prior to City consideration of a loan request. Information regarding the program and procedures for obtaining a loan are as follows: a. Cit y Staff. City Staff shall carry out RLF operating procedures as approved by the EDA and City Council. Staff is responsible for assisting businesses in the loan application process and will work closely with applicants in developing the necessary information. b. Application Process: 1. Applicant shall complete a preliminary loan application. Staff will review application for consistency with the policies set forth in the Guidelines. 2. If applicant gains initial support from lending institution and if the preliminary loan application is approved, applicant is then asked to complete a formal application. Formal application shall include a business plan which will include its management structure, market analysis, and financial statement. Like documentation necessary for obtaining the bank loan associated with the proposal is acceptable. Attached with each formal application is a written release of information executed by the loan applicant 3. If the preliminary loan application is not approved by staff, the applicant may request that the City consider approval of the preliminary application at the next regularly scheduled meeting of the City Council. 4. City staff shall analyze the formal application and financial statements contained therein to determine if the proposed business and finance plan is viable. City staff shall submit a written recommendation to the City Council. A decision regarding the application shall be made by the City Council within 60 days of the submittal of a completed formal application. 5. Prior to issuance of an approved loan, the City Attorney shall review and/or prepare all contracts, legal documents, and inter - creditor agreements. After such review is complete, the City shall issue said loan. History: Public Hearing and Adoption on March 23, 2009 Exhibit A STATE REQUIREMENTS 1. MINNESOTA INVESTMENT FUND (MS. I 16J.873 1) Wage Goals: Businesses receiving RLF assistance must pay each employee total compensation, including benefits not mandated by law, that on an annualized basis is equal to at least 110% of the federal poverty level for a family of four. Retail Businesses: are not prohibited from receiving federal ED assistance. 2. MUNICIPAL RIGHTS, POWERS, DUTIES (MS 471.87 - 471.88) An officer of the city may not have a personal financial interest or personally benefit financially from the business to be assisted. 3. BUSINESS SUBSIDY LAW (MS 116J.993- 116J.995). Any state or local government agency or public entity that provides financial assistance to a business must comply with this statute. 4. FIRST SOURCE AGREEMENT (MS 116L.66) A business that receives grants or loans in an amount greater than $200,000 must list any vacant or new positions with the Department of Employment and Economic Development. 5. SURETY DEPOSITS REQUIRED FOR CONSTRUCTION CONTRACTS (MS 290.9705 When a contract exceeds $100,000 and a non - Minnesota construction contractor has been hired to perform the work, the city must do one of the following: a. Deposit with the Department of Revenue, 8 % of every payment made to the contractor; or b. Have in its possession a Waiver of Withholding from the Department of Revenue. 6. GOVERNMENT DATA PRACTICES (MS 13 Information contained in the application for assistance will become a matter of public record with the exception of those items protected under the Minnesota Government Data Practices Act. Exhibit B FEDERAL REQUIREMENTS A. The project must meet at least one of two national objectives. These objectives are: Benefit to Low and Moderate Income (LMI) or Prevention or Elimination of Slums or BE Low and Moderate Income Job Creation/Retention. The business to be assisted must commit to the creation and or retention of jobs with 51% of the jobs to be made available to or held by LMI persons. When jobs will be retained, the business must document that the jobs would be lost without the RLF assistance and that one or both of the following applies to at least 51% of the jobs: a.) The job is held by a LMI person; or b.) The job can reasonably be expected to turn over within the following 2 years and steps will be taken to ensure that the job will be filled by, or made available to, a LMI person. A position is "Available to" LMI persons if the following criteria apply to the position: a.) The job does not require special skills that can only be acquired with substantial training, work experience or education beyond high school. b.) The business agrees to hire unqualified persons and provide training; and c.) The city and the assisted business take actions to ensure that LMI persons receive first consideration for filling such jobs. A job that is "Taken by" an LMI person if his /her household income is within the Section 8 income guidelines. (See attached Job Information form) Retained Jobs In order to consider jobs retained as a result of this assistance, there must be "clear and objective" evidence that permanent jobs will be lost without such assistance. For these purposes "clear and objective" evidence means that jobs will be lost would include: a) Evidence that the business has issued a notice to affected employees or made a public announcement to that effect, or b) Analysis of relevant financial records which clearly and convincingly shows that the business is likely to have to cut back employment in the near future without the planned intervention. To meet the LMI standard, 51% or more of the retained jobs must be either: a) Known to be held by LMI persons at the time this assistance is provided and /or b) Jobs not known to be held by LMI persons, but which can be reasonably expected to "turn over" to LMI persons within 2 years. (This would involve the grant recipient or business taking actions to ensure that such a job, upon turnover, will be either taken by or made available to a LMI person in a manner similar to that pertained to a newly created job. Slums /Blight An economic development project, such as commercial rehab, which aid in the prevention or elimination of slums or blight in a designated area may qualify under the Slum/Blight National Objective. To qualify, the economic development activity must take place in an area that: 1.) Has been designated by the city as meeting a definition of a slum, blighted, deteriorated or deteriorating area under state or local law; and 2.) Has a substantial number of deteriorated or deteriorating buildings, or the public improvements are in a general state of deterioration. The assisted activity must address the conditions that contributed to the deterioration of the delineated area. The city must maintain documentation on the boundaries of the area and the condition which qualified the area when it was designated under state or local law. B. An RLF project must also meet the following federal requirements: 1. FAIR HOUSING AND EQUAL ACCESS a. Title VI of the Civil Rights Act of 1964, as Amended (42 U.S.C. 2000d et sec.) (24 CFR Part 1) No person maybe excluded from participation in, denied the benefits of, or subjected to discrimination under any program or activity receiving Federal financial assistance on the basis of race, color or national origin. b. The Fair Housing cct (42 U.S.C. 3601 - 3620)((24 CFR Part 100 -115) Prohibits discrimination in the sale or rental of housing, the financing of housing or the provision of brokerage services against any person on the basis of race, color, religion, sex, national origin, handicap or familial status. Furthermore, section 104 (b) (2) of the Act requires that each grantee certify to the secretary of HUD that it is affirmatively furthering fair housing. The certification specifically requires grantees to conduct a fair housing analysis, develop a fair housing plan, take appropriate actions to overcome the effects of any impediments identified and maintain records on the analysis, plan and actions in this regard. C. Equal Opportunity in Housing (Executive Order 11063, as amended by Executive Order 12259)(24 CFR Part 107) Prohibits discrimination against individuals on the basis of race, color, religion, sex or national origin in the sale, rental, leasing or other disposition of residential property, or in the use or occupancy of housing assisted with Federal funds. d. Age Discrimination Act of 1975. As Amended (42 U.S.C. 6101) (24 CFR Part 1 Prohibits age discrimination in programs receiving Federal financial assistance. e. Section 109 of Title I of the Housing and Community Development Act of 1974 Requires that no person shall be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity funded with CDBG funds on the basis of race, color, religion, national origin or sex. f. Americans with Disabilities Act (ADA )(42 U.S.C. 12131; 47 U.S.C. 155, 201, 218, and 225) Provides comprehensive civil rights to individuals with disabilities in the areas of employment, public accomodations, state and local government services and telecommunications. The Act also states that discrimination includes the failure to design and construct facilities that are accessible to and usable by persons with disabilities and requites the removal of architectural and communication barriers that are structural in nature in existing facilities. g Section 504 of the Rehabilitation Act of 1973 Prohibits discrimination in Federally assisted programs on the basis of handicap. It imposes requirements to ensure that "qualified individuals with handicaps" have access to programs and activities that receive Federal funds. h. Architectural Barriers Act of 1968 (942 U.S.C. 4151 -4157) Requires certain Federally funded buildings an other facilities to be designed, constructed or altered in accordance with standards that ensure accessibility to, and use by, physically handicapped people. 2. EQUAL OPPORTUNITY a. Equal Employment Opportunity, Executive Order 11246, as amended.. (41 CFR art 60 Prohibits discrimination against any employee or applicant for employment because of race, color, religion, sex or national origin. Provisions to effectuate this prohibition must be included in all construction contracts exceeding $10,000. b. Section 3 of the Housing and Urban Development Act of 1968 Requires that, to the greatest extent feasible, opportunities for training and employment arising from CDBG will be provided to low- income persons residing in the program service area. Also, to the greatest extent feasible, contracts for work (all types) to be performed in connection with CDBG will be awarded to business concerns that are located in or owned by persons residing in the program service area. C. Minority/Women's Business Enterprise (Executive Orders 11625, 12432, 12138) (24 CFR 85.36(e)). City must prescribe procedures for a minority outreach program to ensure the inclusion, to the maximum extent possible, of minorities and women, and entities owned by minorities and women, in all contracts. 3. LABOR REQUIREMENTS All contracts for construction and installation of equipment must comply with the following: a. Davis -Bacon and Related Acts (40 USC 276 (A) -7) Ensures that mechanics and laborers employed in construction work under Federally contracts are paid wages and fringe benefits equal to those that prevail in the locality where the work is performed. b. Contract Work Hours and Safety Standards Act, as amended (40 USC 327 -333) Provides that mechanics and laborers employed on Federally assisted construction jobs are paid time and one -half for work in excess of 40 hours per week, and provides for the payment liquidated damages where violations occur. It also addresses safe and healthy working conditions. C. Copeland (Anti - Kickback)Act (40 USC 276c) Governs the deductions from paychecks that are allowable. Makes it a criminal offense to induce anyone employed on a Federally assisted project to relinquish any compensation to which he /she is entitled, and requires all contractors to submit weekly payrolls and statements of compliance. d. Fair Housing Standards Act of 1938, As Amended (29 USC 201, et.seq.) Establishes the basic minimum wage for all work and requires the payment of overtime at the rate of at least time and one -half. It also requires the payment of wages for the entire time that an employee is required or permitted to work, and establishes child labor standards. In accordance with 24 CFR Part 5, CDBG funds may not be used to directly or indirectly employ, award contracts to or otherwise engage the services of any contractor or subrecipient during any period of debarment, suspension or placement of ineligibility status. Grantees should check all contractors, subcontractors, lower tier contractors and subrecipients against the Federal publication that lists debarred, suspended and ineligible contractors. See internet site at http: / /www.amet.gov /epls /. 4. PROCUREMENT The procurement standards of 24 CFR 85.36 apply. 5. CONFLICT -OF- INTEREST For the procurement of property and services, the conflict -of- interest provisions at 24 CFR 85.36 and 24 CFR 84.42 apply. This requires the city to maintain written standards governing the performance of their employees engaged in awarding and administering contracts. At a minimum, these standards must: a. Require that no employee, officer, agent of the city or its sub - recipient shall participate in the selection, award or administration of a contract supported by CDBG if a conflict -of- interest, either real or apparent, would be involved; b. Require that grantee or sub - recipient employees, officers and agents not accept gratuities, favors or anything of monetary value from contractors potential contractors or parties to sub - agreements; and C. Stipulate provisions for penalties, sanctions or other disciplinary actions for violations or standards. A conflict would arise when any of the following has a financial or other interest in a firm for award: a. An employee, agent or officer of the grantee or sub - recipient; b. Any member of an employee's, agent's or officer's immediate family; C. An employee's, agent's or officer's partner; or d. An organization that employs or is about to employ an employee, agent or officer of the grantee or sub - recipient. In cases not covered by the above, the CDBG regulations at 24 CFR 570.611 governing conflict -of- interest apply. These provisions cover employees, agents, consultants, officers and elected or appointed officials of the city or sub - recipient. The regulations state that no person covered who exercises or has exercised any functions or responsibilities with respect to CDBG activities or who is in a position to participate in decisions or gain inside information: a. May obtain a financial interest or benefit from a CDBG activity; b. Have an interest in any contract, subcontract or agreement for themselves or for persons with business or family ties. This requirement applies to covered persons during their tenure and for one year after leaving the city or sub - recipient entity. Upon written request, exceptions to these provisions may be granted by HUD on a case - by -case basis only after the city has: a. Disclosed the full nature of the conflict and submitted proof that the disclosure has been made public, and b. Provided a legal opinion from the city stating that there would be no violation of state or law if the exception were granted. 6. ENVIRONMENTAL REVIEW The city is responsible for undertaking environmental reviews in accordance with the Environmental Handbook. The environmental review must be completed before funds are committed. 7. FLOOD INSURANCE Section 202 of the Flood Disaster Protection Act of 1973 (42 USC 4106 Requires that CDBG funds shall not be provided to an area that has been identified by the Federal Emergency Management Agency (FEMA) as having special flood hazards unless: a. The community is participating in the National Flood Insurance Program, or it has been less than a year since the community was designated as having special flood hazards; and b. Flood insurance is obtained. 8. DISPLACEMENT, RELOCATION, ACQUISITION AND REPLACEMENT OF HOUSING Projects involving acquisition, rehabilitation or demolition maybe subject to the provisions of the Uniform Relocation Act. 0400-6 MyO" O ~Oyy° 00$606? I$SOI 0630,10 O ,� yh 011160,10 Oy \ \ OS6011I IS$OZ 1 \` \`\ OOSSp90 hhOO I$SOIOOSSO67 R�.Ve� Sty phO ISSOt00S1060 Nyo oaf 00 ohp O O" N N O ^ hh ISSOZ00S.70 yy Nhh 1? V ISSOtOp4g0t0 y °p° 44-1004900J I$$OI � Ny a0- OOSgOII I$$O hhOp " NOyO,v I$$0 0 S \ .100$4030 O °� Z 0 - _ N ao0 Ny0 °I j0 OOM I$SOIOO$OOZ I$ @\ Nh00 4 O \ 'y p $pIOpSOIZI W @r t$$ ptp + No O 011 O q` My �_, aa�a 00tt opy tWNNESOTA 67 \. 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C O 3plp o ti p ti O b I O SSOIOOI602 " Nh I$S �3j0003p0 0 ° o I$$ �3j 2$$ ° 00 0o pOhp �oO 2004 0200 3020 N. hN n0- i M ti hhN �� sth. c St.� �,a m v o ,C p° Q ZS$OIOOZ40Z0 hh +Li � Oh ISS0I IS$OIO001020 O h 00060 hppa pap 60- ~ p" hh N 0 N 0 (O 0 N h / o hON O pa " p h `O N hp o pho 7th St WW h O N hh N O O" ^y 2SS01 O .t h0 0500 N ,.. .1 ISSOIO0020r i I 155076001010 y 155076001020 i s ric 3 1997 Establishment Parcels r 2012 County Records Pine St To Wb 194 N 1 inch = 100 feet F6 ly A To A' Interstate 94 e Oa+ h, s1` Interstate 94 opq pine St To Eb I94 Or CITY OF • on iceflo N", pIneStT o Document Path: K:\ 01010- 27 \GIS \Maps \TIF_District_1- 22.mxd EDA Agenda — 10/10/12 7. Consideration of an update regarding TIF Housing District Increment. (AS) A. REFERENCE AND BACKGROUND As the EDA is aware, obligations under TIF District 1 -19 (Mississippi Shores) have been met, and the EDA had initially considered decertifying the district. However, the district has remaining excess increment available for use and the district is not required to be decertified until 2023. TIF District 1 -19 is a housing district, along with Districts 1 -20 (Prairie West), 1 -24 (Church of St. Henry) and 1 -29 (Front Porch). During a recent staff meeting with Northland Securities, staff discussed potential options for the use of existing increment within these districts. Northland indicated that some, if not all, of these housing districts will continue to generate increment beyond their obligation notes until the time of their required decertification. Northland has discussed the possible uses of increment within these districts with EDA attorney Kennedy & Graven, and has prepared a memo regarding their findings. Among the possible uses is the direction of the increment to another housing project (meeting the same TIF standards of use), such as that recently proposed by Podawiltz Development for Autumn Ridge. A representative from Northland Securities will be present during the October regular meeting to review the memo and answer the EDA's questions regarding use opportunities. B. ALTERNATIVE ACTIONS No action is necessary at this time. C. STAFF RECOMMENDATION Not applicable. D. SUPPORTING DATA A. Memo — Pooling for Housing, Northland Securities w _A MEMORANDUM To: City of Monticello NORTHLAND STRATEGIES Special Projects Group From: Rusty Fifield and Tammy Omdal Date: September 12, 2012 Re: Pooling for Housing The City has requested additional information on the management strategies included in the 2012 Updated Tax Increment Financing Plan Analysis and Management Plan (the "TIF Management Plan") prepared by Northland. Specifically, the City is interested in authority for pooling for housing. We have categorized the City's authority under housing TIF districts, non - housing TIF districts, and expanded pooling for foreclosed housing. For easy reference, at the end of this memorandum we have included information on the criteria for establishment of a housing TIF district and a summary of the portions of the TIF Act related to pooling for housing Housing TIF Districts For housing TIF districts, tax increments can be spent on projects that meet the criteria for establishing a housing TIF district (The criteria are described later in this memo). The practical application of this authority includes: • The use of tax increment is not limited by pooling restrictions or the five -year rule. • The tax increment can be spent on activities outside of the TIF district, but within the Central Monticello Project Area. 0 This authority does not extend the maximum statutory duration of a TIF district. • The tax increment must be used solely to finance the cost of the "housing project" as defined by the statute. The cost of public improvements directly related to the housing project and the allocated administrative expenses of the city may be included in the cost of a housing project. a No more than 20% of the square footage of buildings that receive TIF assistance may consist of commercial, retail, or other nonresidential uses. Options for Housing TIF Districts The City has four housing TIF districts (TIF 1- 19,1- 24,1 -29, and 1 -30). Each of these districts had outstanding obligations as of December 31, 2011. (The outstanding obligation for TIF 1 -19 ended with the termination of a developer note effective 2/1/2012.) TIF law requires that a district be decertified after its obligations are satisfied, with limited exception. A plan for the use of this pooling authority could create an obligation to avoid decertification. Northland Securities, Inc. 45 South 7th Street, Suite 2000, Minneapolis, MN 55402 Main: (612) 851 -5900 / Direct: (612) 851 -4992 / Email: rfifieldcanorthlandsecurities.com Member FIIVRA and SIPC Pooling for Housing September 12, 2012 Page 2 The TIF Management Plan provides information by district on fund balance and estimated balance at the end of TIF district life. A summary of district information from the TIF Management Plan is provided as an attachment to this memorandum. Potential applications of this authority include: • Individual housing projects avoiding the need for a new TIF district. • Supplementing the revenues of another housing TIF district. • Assistance for the renovation of existing housing. • Acquisition of land for housing. • Assistance to make public improvements more affordable. We look forward to working with you to explore applications in Monticello. Non - Housing TIF Districts For all other types of TIF district, the amount of expenditure is limited to an additional 10% in the regular pooling limitations. The qualified uses are different from housing districts. To qualify for the 10% pooling increase, the expenditure must: 1. Be used exclusively to assist housing that meets the requirement for a qualified low- income building, as that term is defined in Internal Revenue Code (IRC). 2. Not exceed the qualified basis of the housing, as defined under IRC, less the amount of any credit allowed under IRC. 3. Be used to acquire and prepare the site of the housing; acquire, construct, or rehabilitate the housing; or make public improvements directly related to the housing. 4. Be used to develop housing if the market value of the housing does not exceed the lesser of: 150 percent of the average market value of single- family homes in that municipality; or $200,000 for municipalities located in the metropolitan area, as defined in the TIF Act, or $125,000 for all other municipalities; and if the expenditures are used to pay the cost of site acquisition, relocation, demolition of existing structures, site preparation, and pollution abatement on one or more parcels, if the parcel contains a residence containing one to four family dwelling units that has been vacant for six or more months and is in foreclosure as defined Statutes, but without regard to whether the residence is the owner's principal residence, and only after the redemption period stated in the notice provided under Statute has expired. The expenditures may be for activities outside of the Project Area. Options for Non Housing TIF Districts The potential uses of this authority are the same as those listed for hosing TIF districts. A critical limitation is the requirement to use the tax increments solely for expenditures related to qualifying housing for low /moderate income persons. Determination of the funding capacity requires analysis of the other expenditures subject to pooling limitations. Pooling for Housing September 12, 2012 Page 3 The City could act to pool available tax increment from its existing non - housing TO districts for the purpose of housing, subject to regular pooling limitations for a district plus an additional 10 %. The TIF plan for a district must include a specific provision for the additional 10% pooling. If the TIF plan for a district does not include this pooling provision for housing, the City could act to administratively amend (without notice and hearing) the TIF Plan provided the district has existing obligations outstanding. The City may not amend a TIF Plan for a district after obligations are satisfied and decertification is required. If an amendment to the budget in the TIF Plan is required to provide for the additional expenditure on housing, the City may approve modifications only upon the notice and hearing. The first step to proceed under this option is for the City to review the TIF Plans for non - housing districts with projected available tax increment balances to determine whether the expanded pooling authority for housing exists and determine whether the current budget in the TIF Plan is sufficient to cover the additional expenditure on housing. Expanded Pooling for Foreclosed Housing The ability to spend tax increments outside a TIF district (Section 469.1763, Subd. 2) allows for a 10% increase in the general limitation for certain types of housing.' The 2011 Amendments expanded this authority. The expanded poling authority may be used to develop housing under the following criteria: The parcel contains a residence containing one to four family dwelling units that has been vacant for six or more months and is in foreclosure as defined in section 325N.10, subdivision 7, but without regard to whether the residence is the owner's principal residence, and only after the redemption period stated in the notice provided under section 580.06 has expired. 2. The market value of the housing does not exceed the lesser of 150% of the average market value of single - family homes in that municipality or $200,000 for municipalities located in the metropolitan area, as defined in section 473.121, or $125,000 for all other municipalities. 3. The tax increments are used to pay the cost of site acquisition, relocation, demolition of existing structures, site preparation, and pollution abatement on one or more parcels. ' (d) The authority may elect, in the tax increment financing plan for the district, to increase by up to ten percentage points the permitted amount of expenditures for activities located outside the geographic area of the district under paragraph (a). As permitted by section 469.176, subdivision 4k, the expenditures, including the permitted expenditures under paragraph (a), need not be made within the geographic area of the project. Expenditures that meet the requirements of this paragraph are legally permitted expenditures of the district, notwithstanding section 469.176, subdivisions 4b, 4c, and 4j. To qualify for the increase under this paragraph, the expenditures must: (1) be used exclusively to assist housing that meets the requirement for a qualified low- income building, as that term is used in section 42 of the Internal Revenue Code; (2) not exceed the qualified basis of the housing, as defined under section 42(c) of the Internal Revenue Code, less the amount of any credit allowed under section 42 of the Internal Revenue Code; and (3) be used to: (i) acquire and prepare the site of the housing; (ii) acquire, construct, or rehabilitate the housing; or (iii) make public improvements directly related to the housing. Pooling for Housing September 12, 2012 Page 4 This authority under expires on December 31, 2016. Increments may continue to be expended under this authority after that date, if they are used to pay bonds or binding contracts that would qualify under subdivision 3, paragraph (a), if December 31, 2016, is considered to be the last date of the five - year period after certification under that provision. This authority is effective for any district that is subject to the provisions of section 469.1763, regardless of when the request for certification of the district was made. Options for Expanded Pooling for Foreclosed Housing The City may wish to consider how the expanded authority may be applicable to Monticello. If so, then additional review of application to select existing districts should be undertaken. Criteria for Housing TIF Districts The statutes governing the use of TIF define a housing district consisting of a project, or a portion of a project, intended for occupancy, in part, by persons or families of low and moderate income (Minnesota Statutes, Section 469.174, Subd.11). The requirements for the establishment of a housing TIF district are contained in Minnesota Statutes, Section 469.1761. The primary criteria are income related. The criteria are different for owned and rental housing. For owner occupied property, 95% of the housing units must be initially purchased and occupied by individuals whose family income is less than or equal to the income requirements for qualified mortgage bond projects under section 143(f) of the Internal Revenue Code. For households of one or two people, the threshold under the IRS Code is 100% of the greater of the area median gross income or the statewide median gross income. For larger households, the threshold is 115% of the median income. The income requirements for rental housing are tied to section 142(d) of the Internal Revenue Code. There are two options for income restrictions: (1) 20% or more of the residential units are occupied by individuals whose income is 50% or less of area median gross income, or (2) 40% or more of the residential units are occupied by individuals whose income is 60% or less of area median gross income. While the owned housing test applies to the initial purchase, the rental requirements apply for the duration of the tax increment financing district. Portions of TIF Act Related to Pooling for Housing 469.1763, Subd, 3. Five-year rule. (a) Revenues derived from tax increments are considered to have been expended on an activity within the district under subdivision 2 only if one of the following occurs: (5) expenditures are made for housing purposes as permitted by subdivision 2, paragraphs (b) and (d). 469.1763, Subd. 2. Expenditures outside district (b) In the case of a housing district, a housing project, as defined in section 469.174, subdivision 11, is an activity in the district. Pooling for Housing September 12, 2012 Page 5 (d) The authority may elect, in the tax increment financing plan for the district, to increase by up to ten percentage points the permitted amount of expenditures for activities located outside the geographic area of the district under paragraph (a). As permitted by section 469.176, subdivision 4k, the expenditures, including the permitted expenditures under paragraph (a), need not be made within the geographic area of the project. Expenditures that meet the requirements of this paragraph are legally permitted expenditures of the district, notwithstanding section 469.176, subdivisions 4b, 4c, and 4j. To qualify for the increase under this paragraph, the expenditures must: (1) be used exclusively to assist housing that meets the requirement for a qualified low- income building, as that term is used in section 42 of the Internal Revenue Code; (2) not exceed the qualified basis of the housing, as defined under section 42(c) of the Internal Revenue Code, less the amount of any credit allowed under section 42 of the Internal Revenue Code; and (3) be used to: (i) acquire and prepare the site of the housing; (ii) acquire, construct, or rehabilitate the housing; or (iii) make public improvements directly related to the housing. (4) be used to develop housing:z (i) if the market value of the housing does not exceed the lesser of: (A) 150 percent of the average market value of single - family homes in that municipality; or (B) $200,000 for municipalities located in the metropolitan area, as defined in section 473.121, or $125,000 for all other municipalities; and (ii) if the expenditures are used to pay the cost of site acquisition, relocation, demolition of existing structures, site preparation, and pollution abatement on one or more parcels, if the parcel contains a residence containing one to four family dwelling units that has been vacant for six or more months and is in foreclosure as defined in section 325N.10, subdivision 7, but without regard to whether the residence is the owner's principal residence, and only after the redemption period stated in the notice provided under section 580.06 has expired .3 469.174, Subd.11. Housing district. 'Housing district' means a type of tax increment financing district which consists of a project, or a portion of a project, intended for occupancy, in part, by persons or families of low and moderate income, as defined in chapter 462A, Title II of the National Housing Act of 1934, the National Housing Act of 1959, the United States Housing Act of 1937, as amended, Title V of the Housing Act of 1949, as amended, any other similar present or future federal, state, or municipal legislation, or the regulations promulgated under any of those acts, and that satisfies the requirements of section 469.1761. Housing project means a project, or a portion of a project, that meets all of the qualifications of a housing district under this subdivision, whether or not actually established as a housing district. 2 Added MN Laws 2011, Chapter 112. This section is effective for any district that is subject to the provisions of section 469.1763, regardless of when the request for certification of the district was made. 3 Also see time restrictions in paragraph (f). Pooling for Housing September 12, 2012 Page 6 469.176, Subd. 4k Assisting housing outside project area. Notwithstanding the definition of a project under section 469.174, increments may be spent to assist housing that meets the requirements under section 469.1763, subdivision 2, paragraph (d), regardless of whether the housing is located within the boundaries of the project area. City of Monticello Summary Information for TIF Districts City Number 1 -5 1 -6 1 -19 1 -20 1 -22 1 -24 1 -29 County Number 16 23 80 620 622 624 629 Mississippi Downtown Church of St. Front Porch Name Construction 5 Raindance Prairie West Shores District Henry Associates Type Redevelopment Redevelopment Housing Redevelopment Redevelopment Housing Housing Established 5/15/85 11/12/85 3/13/95 6/24/96 3/10/97 8/24/98 3/15/02 Certification Requested 5/15/85 12/5/85 4/27/95 12/20/96 6/25/97 1/4/99 6/14/02 Certified 5/15/85 12/5/85 4/28/95 12/23/96 6/30/97 1/8/99 8/22/02 Year of First Increment 1987 1988 1998 1999 1999 2001 2004 4 -Year Knockdown 5/15/89 12/5/89 4/30/99 12/23/00 6/30/01 1/8/03 8/22/06 5 -Year Rule NA NA 4/30/00 12/23/01 6/30/02 1/8/04 8/22/07 Decertification 12/31/12 12/31/13 12/31/23 12/31/24 12/31/24 12/31/26 12/31/29 Proj Fund Balance 12/31/2012 $450,985 $598,849 $61,057 $147,264 $3,267,070 $38,404 $78,245 *Proj Fund Balance Life of District $450,985 $690,860 $465,766 $362,019 $3,274,666 $641,302 $421,526 City Number 1 -30 1 -34 1 -35 1 -36 1 -37 1 -38 1 -39 County Number 630 634 635 636 637 638 Pending Central MN Monticello Landmark Rocky Mountain SL Real Estate Otter Creek Name Housing Walker Interchange Square II Group Holdings Crossing Partnership Renewal and Economic Economic Economic Economic Type Housing Redevelopment Renovation Development Development Development Development Established 6/24/02 9/12/05 9/12/05 8/22/05 4/24/06 4/11/07 8/22/11 Certification Requested 6/28/02 12/29/05 12/29/05 12/30/05 7/19/06 10/1/07 Pending Certified 8/22/02 8/1/06 8/1/06 8/1/06 4/16/07 10/1/07 Pending Year of First Increment 2004 2007 2008 2007 2008 2009 Pending 4 -Year Knockdown 8/22/06 8/1/12 8/1/12 8/1/12 8/1/12 8/1/12 Pending 5 -Year Rule 8/22/07 8/1/16 8/1/16 8/1/11 4/16/12 10/1/12 Pending Decertification 12/31/29 12/31/22 12/31/33 12/31/15 12/31/16 12/31/17 Pending Proj Fund Balance 12/31/2012 $50,897 ($137,640) $4,865 $11,662 $3,994 ($4,914) n/a *Proj Fund Balance Life of District $73,704 ($185,508) $6,677 $21,382 $39,489 ($2,488) n/a *Note: "Proj Fund Balance Life of District" is the estimated fund balance at the end of the districts life provided that early decertification is not required by law or the Authority does not make the decision to decertify early. Information included in this Table is from the 2012 TIF Management Plan prepared by Northland Securities. The balance for TIF 1 -22 is currently under review. hd 'tj 14k Y nficell iness enter ZO U. MINE IN L; Mli LEGEND 1 - Jefferson Commons 2 - Outlot A - Country Club ManorText Ue4MPWW P40row 3 - Dundas Road Piece 40 4 - Bowling Alley 5 - Monte Club Park coo r . 4., ' I ' I �'� PW 6 - Monte Club City Owned Property -r T EDA Owned Property Potential Future Acquisition City Parking Lot J oil V4 VA Om%o Monticello Township Boundary 4 & 1 Municipal Boundary Vol i 0 1,500 3,000 4,500 ETT71 Feet ck I Mon icefl r Ilk J4, 0 30011 )ft r. 41% A u% Ae 4�t 'p or � IT AV C6 4V 'j 't IL Ir %k km LA Rl F-W 12 40 PL I- OFF 4S7 �tw KA01488 -92 \Cad \Exhibits \Mont Bus Center Lot fig 2.dwg a C o n 0 m h 3 n v IO d > > N A O O � _. O N � y � � � Z C CD O O -1 cQ c m Z c 3 cr CDs N �ca ca ca a m o. CD o Z C 0 (D 3 v m N O Iwo r NEI- 4 aALT4LM A1PE ME or F i� RLAW, I Fr no- T w . #,� �� +,• � .I�,� �� -fir -' ��.:�' _ w I ° t 4� I� Z z o C7 -o O m c Z m n / i�•_ D mc K m c D o m Z W R r_ Z A m o n m m w O m Z -1 cQ c m Z c 3 cr CDs N �ca ca ca a m o. CD o Z C 0 (D 3 v m N O Iwo r NEI- 4 aALT4LM A1PE ME or F i� RLAW, I Fr no- T w . #,� �� +,• � .I�,� �� -fir -' ��.:�' _ im I ° t G) m I� z o m X -o O m c Z m I r- m p D mc K m c D o m Z ;o m r_ Z A m o k Ideally, the Comprehensive Plan does not have an Economic Develop- ment chapter. The Land Use Plan would be sufficient to channel market forces to meet the development objectives of the community. In reality, certain development needs cannot be met without public intervention. The Economic Development chapter of the Plan focuses on the aspects of Monticello's future that require particular attention and action by the City. These actions include: ► Attracting jobs ► Expanding the tax base ► Enhancing the economic vitality of Downtown ► Facilitating redevelopment Attracting Jobs The creation and retention of jobs is one of the most important objec- tives for Monticello. Jobs, particularly jobs with income levels capable of supporting a family, are key to achieving many elements of Monticello's vision for the future. ► Jobs attract residents to the community. Jobs will pay a critical role in creating the type of "move up" housing sought by the City. ► Jobs provide the income needed to support local business and govern- ment services. ► Retention of businesses promote community stability by keeping jobs and residents in Monticello The Community Context chapter of the Comprehensive Plan contains a section on Employment. This section contains data about employment in Monticello and of its residents. Among the key findings in this section are: ► Monticello has been a net importer of employment - there are more jobs in Monticello than workers living in the community. According to the 2000 Census, 5,111 people reported working in Monticello while 4,262 Monticello residents were part of the civilian labor force. 2008 Comprehensive Plan Economic Development 1 4 -1 ► The job base in Monticello is made up of a wide range of small to medium sized employers. In 2007, Only five employers report more than 100 employ- ees, Monticello Public Schools, Xcel Energy, Cargill Kitchen Solutions, Monticello -Big Lake Hospital, and Ultra Machining Company (according to listing of major employers from Minnesota Department of Employment and Economic Development). ► Workers for Monticello businesses come primar- ily from Monticello and the surrounding region. Over 80% of people working in Monticello lived in Monticello, adjacent townships, Big Lake, or other places in Wright and Sherburne counties (2000 Census). ► The 2000 Census found that only 26% of people working Monticello also lived in the city. ► 69% of working Monticello residents held jobs in other places (2000 Census). More than one -third worked in Hennepin County. ► The 2000 Census reported a mean travel time to work of 26 minutes. 45% of Monticello workers indicated travel time to work of 30 minutes or more. In 2007, St. Cloud State University conducted an as- sessment of establishing a bioscience park in Mon- ticello. The results of this study provide important insights on future job growth. The study identified a series "strengths" for attracting bioscience firms to Monticello: ► Land availability (compared to Metro Area). ► Access to major highways (I -94, U.S. 10 and STH 25). ► Regional growth of employment base. ► Development of local fiber optic system. ► Proximity to universities. ► Overall location. ► Expansive park system. ► Monticello Community Center. Many of these factors would also apply to attracting other types of businesses. The St. Cloud State study also made note of several weaknesses in attracting these business to the com- munity. The list included: ► Lack of hotels and lodging. ► No defined plan. ► Small community. ► Low tax base. The recommendations of this Study apply to efforts to establishing a bioscience park and to overall develop- ment of Places to Work: ► Site Location - Need to have site that are suitable and attractive to potential businesses available and ready for development. ► Funding - Funding is essential to provide sites and for incentives to attract and retain the appropriate businesses. Local, state and private funding sources should be explored. ► Tax treatment - The City gains important tools from special tax zones that have been made avail- able at state and federal level. ► Partnerships - Attracting jobs to Monticello re- quires partnerships with other stakeholders. Expanding the Tax Base A traditional objective of local economic development planning is the expansion of the property tax base. Under the current system of local government finance, property taxes are the largest source of city revenue. For this reason, it is an important aspect of economic development planning in Monticello. Understanding the Property Tax System Effective strategies to promote the growth of the tax base require a clear understanding of the property tax system. Property Valuation There are three forms of property valuation. The foun- dation of the property tax system is Estimated Market Value. This amount is the value of a parcel of property as set by the County Assessor. In some circumstances, the State Legislature limits the amount of Estimated 4 -2 1 Economic Development City of Monticello Market Value that can be used for taxation. These adjustments result in the Taxable Market Value. The value used to calculate property taxes is Tax Capacity. Tax Capacity Value is a percentage of Taxable Market Value. The percentage factors are set by the State Legislature and vary by class of property. Figure 4 -1: Changes in Tax Capacity Value - Commercial /Industrial 450,000 - 400,000 350,000 300,000 v 250,000 T Q v 200,000 FR 150,000 100,000 50,000 0 1997 1998 1999 2000 2001 2002 to 2007 Changes in the Tax System Traditional economic development theory seeks commercial and in- dustrial development as a means of building tax base. Historically, the system supported this approach. A dollar of estimated market value of commercial - industrial property carried a higher tax capacity value than residential property. Over the past twelve years, tax "reforms" by the State Legislature have changed this situation. The chart in Figure 4 -1 shows how legislative changes have reduced the tax base created by commercial - industrial development. This chart is based on the tax capacity value for $3,000,000 of Taxable Market Value. The legislative changes in the rates used to set tax capacity mean that this property produced 56% less tax base in 2007 than in 1997. This trend takes on additional meaning when compared to other classi- fications of property. Figure 4 -2 compares the tax capacity value for the primary forms of development in Monticello. The valuations in this chart are based on assumptions about the density of development and estimated market value of new development. Changes in these assumptions will alter the results. 2008 Comprehensive Plan Economic Development 1 4 -3 300,000 250,000 200,000 v a 150,000 a v x F 100,000 50,000 0 Figure 4 -2: Tax Capacity Comparison Industrial Retail Office Single Townhome Apt Industrial Retail Office Single Townhome Amt Acres 10 10 10 10 10 10 Coverage 30% 30% 30% 3 6 12 Development (SF or Units) 130,680 130,680 130,680 30 60 120 EMV per SF or Unit 65 80 100 400,000 250,000 150,000 EMV 8,494,200 10,454,400 13,068,000 12,000,000 15,000,000 18,000,000 Tax Capacity 169,134 208,338 260,610 120,000 150,000 225,000 All Other T. 55 Figure 4 -3: Tax Capacity Comparison Xcel Energy 39% rger" 4 -4 1 Economic Development City of Monticello This chart clearly illustrates the current reality for eco- nomic development strategies. All forms of develop- ment contribute tax base to the community. It is risky placing too much weight on one type of development for tax base growth. In addition, cities do not control the critical elements of the tax system. Changes in the system lead to unanticipated results at the local level. Tax base growth has implications that are unique to Monticello. The chart in Figure 4 -3 shows the distribu- tion of taxable (Tax Capacity) value in Monticello. Xcel Energy creates almost 40% of the City's tax base. While it has provided a unique asset for the community, it is essential that the tax base become more diversified. Enhancing Downtown Maintaining a successful Downtown is an important element of the economic development plan for Mon- ticello. Downtown is a key business district providing goods, services and jobs for the community. Down- town is unlike any other business district because of its unique role in Monticello's identity and heritage. The Land Use chapter describes plans, policies and strategies related to Downtown Monticello. Downtown is part of the Economic Development chapter because of the likelihood that city actions and investments will be needed to achieve community objectives for Down- town. This intervention may include: ► Public improvements to provide services or to enhance the Downtown environment. ► Provision of adequate parking supply. ► Acquisition of land. ► Preparation of sites for development. ► Removal of other physical and economic barriers to achieve community objectives. These actions may require the use of tax increment financing, tax abatement or other finance tools avail- able to the City. Facilitating Redevelopment The Comprehensive Plan seeks to create a place where land use plans, policies and controls work together with private investment to properly maintain all properties in Monticello. It is recognized that this approach may not succeed in all locations. Despite the best plans and intentions, properties may become physically deterio- rated and /or economically inviable. In such places, city intervention may be need to facilitate redevelopment and prevent the spread of blight. This intervention may include: ► Acquisition of land. ► Preparation of sites for development. ► Remediation of polluted land. ► Construction or reconstruction of public improve- ments. ► Provision of adequate parking supply. ► Removal of other physical and economic barriers to achieve community objectives. These actions may require the use of tax increment financing, tax abatement or other finance tools avail- able to the City. Development Strategies The following strategies will be used to implement the Comprehensive Plan in the area of Economic Develop- ment: 1. The City must use the Comprehensive Plan to pro- vide adequate locations for future job - producing development (Places to Work). 2. The City should adhere to the Comprehensive Plan to encourage stable business setting and promote investment and expansion of facilities. 3. The City should coordinate utility planning and manage other development to ensure that expan- sion areas are capable of supporting new develop- ment in a timely manner. 4. The City should evaluate the need and feasibility of additional city-owned business parks as a means attracting the desired businesses. 2008 Comprehensive Plan Economic Development 1 4 -5 5. The City should establish a plan to evaluate the feasibility of implementing the recommendation of the St. Cloud State study and if feasible to take necessary action to attract bioscience businesses to Monticello. 6. The City will continue to work with existing busi- nesses to maintain an excellent business environ- ment, retain jobs and facilitate expansions. 7. The City will work with the Monticello -Big Lake Hospital to ensure the retention and to promote the expansion of health care services in Monticello. 8. The City will use the Comprehensive Plan to main- tain and enhance the quality of life in Monticello as a tool for attracting businesses and jobs. 4 -6 1 Economic Development City of Monticello 0 N m ry m C a 0 0 ,Court � �yTl . ti 11. BALBOUL CIR. 12 . RED OAK CIR. _ 13. TROY MARQUETTE LA. 14. SPIRIT HILLS RD. I5. M. CURVE BLVD. 4 16. SUMMIT POINTE RO. IT. OVERLOOK LA. 1 •n, "_i'qx 18. GO DEN EAGLE CT. Ift - �O TALON CT. 2 Z0. EAGLE EVE CT. 21. LEAF CIR. ?oW Polo_ 2',P.t9 -- {„ ''R' LCJ ZZ. GOL0ENR0O LA. NF - x I-1 ,,k" 1�r kiln vaa nab yf x, A eh I A4, dGCU A5P. TL 6B r �?• \ ! 4 TIZIN R25W 13 9 124W .NL7NI 1'_:EI I0 10WIJ$H:F� A : @''n - 3.G9 ?FP_4.L99 �4 \ Tr Y cr ° 7'9{19 ADM n 3 r e�w s y � 2'y'I, G' { _ 0,`i SM"CA 211}f1 "3 EiiF. L41 _r ' L ,�[ ;,�}�J @j�+y f-� �•. J' �- � CASE aUff u, a "k 41 IN 1 --e IN R25W r�,i ' { � 5x99 T � , �4 rG"8r � —x , & 1000 J `4�• ,az'd`' I �,� � fv{M"f tea., B 15 •" ii r.*U@r m Y1 I rs. zl zz 11rt TIC NIL~ f u rA1 Oh ,z 7 Kaa t m e, r I I TIiiW MR rw e`ifl, 14F � NNRTH J � R 9 , p roi + NoriA a n _x Y 5 v 0 c " 0 2000 FT 4000 FT NOR, T " MONTiCELLO T 'NVSi1:F + + © 1300 + _- 300 1 T �' sp, ke Cif4 of J"*X0NT1CLLL0 M I N NE S O T A Transportation Plan Prepared by. - 701 Xenia Avenue South, Suite 300 WSB Minneapolis, g com J www.wsb sben.com & �Issoczales, Inc. 761541-0800 -Fax 763541 -1700 INFRASTRUCTURE, ENGINEERING PLANNING -CONSTRUCTION Legend Future Roadway Volume Exceeds Level of X Service "C" Capacity Note: Refer to Table 4.1 for information regarding degree to which capacity is exceeded. 2030 Projected Traffic Volumes Baseline Alternative Figure 4.1 0 N m ry m C a m 0 zl� n i Y J v 0 ..1 -�q: i f a 7x. aq ,j MONTICELL M I N N E S T A Transportation Plan t. • Prepared by -- 1 - 701 Xerna Avenue South, Suite 300 i t ' ►w /�1� Minneapolis, MN 55416 yYJ www.wsbeng.com y41, 1 + & Issocraes,Inc. -. 7G15714800- Faz761541 -1100 n� INFRASTRUCTURE, ENGINEERING PLANNING CONSTRUCTION is f��'�4 ,� �, +��•�� it sT q;R,� • . < P /ease note_. ,-1 These are on,yVIWO ofthe 1009 /irnproveinenta /ternatives ois0usseO'in Section 42 +• "! ° Ofthe text_ 1= + _ w TH 25- Potential Local Improvement Alternatives Figure 4.2 J 0 N m ry m C a m 0 n i Y J v 0 ICI$ - I• v 2wo FT 40" FT L OWNSHIP _ ,00 .6,785 SHERBLRNE__f_ WRG�I1 �r l T I6Ci1y oJ MoNTICELLo M I N NE S O T A Transportation Plan Prepared by. - 701 Xenia Avenue South, Suite 300 No River Crossing Minneapolis, 55416 WSB J www.wSb sbeng.com Washington St River Crossing XX,XXX CSAH 18 River Crossing - 7615414800- Fax76541 -1700 INFRASTRUCTURE, ENGINEERING PLANNING CONSTRUCTION Legend Existing Interchange Projected Traffic Volumes XX,XXX No River Crossing XX,XXX Orchard Road River Crossing XX,XXX Washington St River Crossing XX,XXX CSAH 18 River Crossing River Crossing Alternatives with No New Interchange Figure 4.3 0 N ti 0 a 0 0 n i Y J v 0 c 11gFfRCELL4] TOWNSHIP ZOO PUPA.L3T ICI$ - I• 0 v 2wo FT 40" FT Ix L OWNSHIP _ ,00 .6,785 SHERBLRNE__f_ WRG�I1 IF r ° �r l T IXeCi1y oJ MoNTICELLo M I N NE S O T A Transportation Plan Prepared by. - 701 Xenia Avenue South, Suite 300 No River Crossing MN 55416 WSBMinneapolis, J www.wsbeng.com Washington St River Crossing XX,XXX CSAH 18 River Crossing - M541431)) Fax 761541 -1700 INFRASTRUCTURE, ENGINEERING PLANNING CONSTRUCTION Legend Existing Interchange Potential Future Interchange Area Projected Traffic Volumes XX,XXX No River Crossing XX,XXX Orchard Road River Crossing XX,XXX Washington St River Crossing XX,XXX CSAH 18 River Crossing River Crossing Alternatives with Interchange in the Vicinity of Orchard Road Figure 4.4 0 N ti 0 a 0 0 n i Y J v 0 c ICI$ - I• 0 v 2wo FT 40" FT TOWNSHIP e _ 6,785 SHERBURNE__f_� �A- EI �r l T IXeCi1y oJ MoNTICELLo M I N NE S O T A Transportation Plan Prepared by. - 701 Xenia Avenue South, Suite 300 No River Crossing Minneapolis, 55416 WSB J www.wSb sbeng.com Washington St River Crossing XX,XXX CSAH 18 River Crossing - 7615414800- Fax76541 -1700 INFRASTRUCTURE, ENGINEERING PLANNING CONSTRUCTION Legend Existing Interchange ILVIPotential Future Interchange Area Projected Traffic Volumes XX,XXX No River Crossing XX,XXX Orchard Road River Crossing XX,XXX Washington St River Crossing XX,XXX CSAH 18 River Crossing River Crossing Alternatives with Interchange in the Vicinity of CSA H 39 Figure 4.5 f 0 N m ry m a 0 0 n i Y J v 0 c " ICI$ - I• 0 v 2wo FT 40" FT r � L OWNSHIP e _ ,00 .6,785 I_ SHERBILRNE_v — 3..__� 6 f �r a�'+ l T IXeCi1y oJ MoNTICELLo M I N NE S O T A Transportation Plan Prepared by. - 701 Xenia Avenue South, Suite 300 No River Crossing MN 55416 WSBMinneapolis, J www.wsbeng.com Washington St River Crossing XX,XXX CSAH 18 River Crossing - M541431)) Fax 761541 -1700 INFRASTRUCTURE, ENGINEERING PLANNING CONSTRUCTION Legend Existing Interchange Potential Future Interchange Area Projected Traffic Volumes XX,XXX No River Crossing XX,XXX Orchard Road River Crossing XX,XXX Washington St River Crossing XX,XXX CSAH 18 River Crossing River Crossing Alternatives with Two New Interchanges Figure 4.6 J 0 N m ry m C a m 0 n i Y J v 0 c fie C04 ai /NX0NT1CLLL0 M1 N N E 5 T A Transportation Plan S - INNESOTR. 0410 Prepared by. 701 Xerna Avenue South, Suite 300 , ,w SB MinneaWp`oIi wsb n9 com 761541-0800- F.761541 -1700 INFRASTRUCTURE- ENGINEERING PLANNING -CONSTRUCTION i a t 1 I a Legend - I °-- °-- ---- Proposed Roads City of Monticello �� - - - - - - -- Orderly Annexation � I x I I Area r ♦,� ,t ♦ I , -► 117 ," '1.*" .� - - -_ ..�.�.,.� - - -- ��---- �_� - -- - N------- - - - - -- New Roadways Long Term Network l *' , Figure 4.7 J 974 O N H1 V i /n A + O rF T� _ I Co O V■ CD � • rF CD CD ca a O_ ACD O a O CD a !D co cQ IV N N� CD Q CD y rF O n L rF c CD N O 1 C) \/ r l� iI F LL e a a o Z 3 V to (D 0 rn �ll l� � 75 (iZ0) f 907 r 606 (970) (2787 + � 168 (269) (202) N [ 521 +. 43 Ut (12451 r; ^,133 1037 —► ( 361 f �5. 27 a X X m m m 0 o x CD CD Cm CL d N 0 0 0 (j O O m m Z J O CD Z1 n N 0 m �r z t �e v e i 1 moo aft 41B ) t i�r s J NN N „t A 0— b Am [ 19 "-*, a o � = c v D V 3 Ut (D 0 m 0- 76 ( 122) [ 911 i✓ I 4— 961 (1538)(11547 219 f 350) ( 263) [ 351 ( 46) 29 J N (3587 (477) 298 —► J�1 jI U1 ( 467 ( 61) 38 n a ^a i�r s J NN N „t A 0— b Am [ 19 "-*,