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EDA Agenda 04-08-2015EDA MEETING Wednesday, April 8th, 2015 6:00 p.m. Mississippi Room - 505 Walnut Street, Monticello, MN EDA Workshop - 2015 EDA Work Plan Academy Room 4:30 PM Commissioners: President Bill Demeules, Vice President Bill Tapper, Treasurer Tracy Hinz, James Davidson, Steve Johnson and Council members Tom Perrault and Lloyd Hilgart Staff: Executive Director Jeff O'Neill, Angela Schumann, Wayne Oberg 1. Call to Order. 2. Roll Call. 3. Approve Meeting Minutes: a. Special Meeting - February 11th, 2015 b. Special Meeting - March 11th, 2015 c. Regular Meeting - March 11th, 2015 4. Consideration of additional agenda items. 5. Consideration of approving payment of bills. 6. Consideration to elect officers. 7. Consideration to review EDA Bylaws and Enabling Resolution. 8. Consideration to review EDA fund balances. 9. Consideration to adopt Resolution for Decertification of Tan Increment Financing District No. 1 -37. 10. Consideration of approving a 2015 Farm Lease Agreement for Outlot F, Otter Creek Crossing. 11. Consideration of an update regarding the Administrative Lot Combination and Simple Subdivision of EDA -owned property. 12. Consideration of Director's Report. 13. Adj ourn. MINUTES SPECIAL MEETING - ECONOMIC DEVELOPMENT AUTHORITY Wednesday, February 11111, 2015 - 4 PM Academy Room, Monticello Community Center Present: Bill Demeules, Bill Tapper, Tracy Hinz, Jim Davidson, Lloyd Hilgart, Steve Johnson, Tom Perrault Absent: None Others: Jeff O'Neill, Angela Schumann 1. Call to order Bill Demeules called the special meeting to order at 4:00 p.m. 2. Purpose The purpose of the workshop is to develop the 2015 EDA Workplan. 3. Consideration of Workplan Goals and Obiectives Angela Schumann noted that the EDA had participated in a workshop to discuss ideas and priorities for 2014 but had not formally adopted a work plan for last year. She suggested that the EDA reflect on its 2013 workplan and other related resource documents as a framework for developing the 2015 workplan. She noted that the City's Economic Development chapter of the Comprehensive Plan outlines broad goal categories and related goal statements previously established by the EDA. She suggested reviewing these goals as well as those included as part of EDA's policies related to business retention and expansion and redevelopment. Schumann asked the EDA to consider if they intend to be proactive or reactive as a body and that they prioritize the goals included in the workplan. Bill Demeules suggested that the EDA must be both proactive and reactive depending upon circumstances. Lloyd Hilgart suggested that the EDA can be as proactive as there are funds available. Schumann suggested that staffing availability is a key consideration as well. Bill Demeules noted that a housing component had not been included as part of the 2013 workplan and that there is TIF money available that can only be used for housing. Jeff O'Neill summarized that staff had done a great job of reacting to immediate needs to keep development processes moving along. He pointed out however that, due to limits to staff time, it has been extremely difficult to also be proactive in addressing development goals. He asked that the EDA to review the benefit of the Market Matching services contract which expires in June. Special EDA Minutes: 02/11/15 Bill Tapper suggested that the EDA should decide if Market Matching is working and to what degree it is working. He also wondered what a new contract would cost and if WSB would still be interested in contracting. There was significant discussion related to the difficulty of measuring the success of the outreach and prospecting component of the contract especially as the economic climate has only recently begun to improve. Johnson suggested that the EDA was getting its money's worth in terms of WSB handling updating marketing materials and paying for the cost of dues and memberships. He pointed out that John Uphoff was still learning how to sell Monticello and that this networking lays the foundation for selling Monticello in the future. Schumann noted that it takes staff time to manage I& contract. There was some discussion related to perhaps finetuning expectations, especially as related to deliverables within a revised contract. Jim Davidson suggested the option of paying on a comm, ission basis for the lead generation component of any future contract. Johnson suggested that additional\staff assistance might=come in the form of an ombudsman position to interface between the city hall and businesses to help solve issues. Lloyd Hilgart indicated that he felt the EDA should discuss the EDA Director position because it doesn't make sense to set goals if there isn't the manpower to achieve them. Tracy Hinz asked if there was money in the budget for a position. She indicated that she'd lean toward hiring a full time EDA Director. Demeules suggested that the position may need only be part-time. O'Neil] suggested that it would have to be budgeted for 2016. Schumann noted that the Admin Assistant position has now evolved to more of a technician for Community Development. She said that the position would assist with handling some of the administrative tasks related to economic development in future as well. Schumann pointed out that the IEDC is a supporting organization with similar goals. There was some discussion related to efforts to more visibly connect staff with existing businesses. Tapper acknowledged that the EDA had been underfunding the process for the last couple of years and that they are not real satisfied with the results. Hilgart made the distinction that the EDA would not be asking for additional staff but rather asking to replace the staff they had lost. W Special EDA Minutes: 02/11/15 Tom Perrault said that he'd considered possibly going month to month with Market Matching after this contract ends. He wondered if Market Matching had produced anything that increased the City's tax base. There was some discussion about the role of property owners themselves in bringing retail businesses. O'Neill pointed out that the City had set the stage for future retail development by planning for it by in specific locations. There was significant discussion related to the unrealistic expectations as to how much it would cost to redevelop downtown and how to pay for it. O'Neill suggested that the City has a huge opportunity to do some housekeeping and prepare to better the future. He suggested exploring all of the possibilities related to accessing funds to shape the community. O'Neill pointed out there is a return on the investment in terms of improving the tax base. Schumann asked what kind of resources staff might provide to help the EDA make a case to the City Council. Demeules suggested the EDA look at the various alternatives available to finance redevelopment projects. There was some discussion related to options to bond, to levy or use tax abatement strategies. Jim Davidson pointed to the need for citizen buy in as to what may be planned for Block 34, why the property may sit empty for some time, and how redevelopment may be funded. Tracy Hinz asked about process. O'Neill said that the EDA would have to pass a resolution identifying a funding strategy for moving forward with downtown redeN eloprnt by June in order for it to affect taxes next year. Schumann summarized that the EDA seems to be in general agreement that, though all of its redevelopment goals are important, funding does not currently exist to do the work. She suggested that the EDA may wish to direct staff to report back with research related to financing strategies including, but not limited to bonding, levying authority, tax abatement, and existing resources. Schumann also indicated that the EDA may find it useful to review examples of how comparable communities have utilized such tools for redevelopment and to consider real cost analyses on a block by block basis. Schumann also encouraged the EDA to obtain City Council input in a workshop format. Hinz suggested that the EDA identify those 2013 workplan goals that had been addressed. As related to EDA's goal of attracting & retaining jobs, Hinz pointed out that the EDA chose to contract for Market Matching services rather than hire an Economic Development Sales (and Marketing) position. There were questions as to whether or not the contract successfully acts as primary outreach in developing and fostering lead opportunities outside of Monticello. Schumann noted that the EDA frequently refers to 3 Special EDA Minutes: 02/11/15 the McCombs study and analysis for benefit of redevelopment opportunities as had been identified in the workplan. Hinz pointed out that there had been an effort made to address the EDA's goal to develop the needed and necessary marketing materials for City and EDA properties. There was some discussion about the process for posting property for sale for development signs at 413 4a' Street, the Cedar Street Garden Center and the Fred's Auto site. O'Neill will check with City Council about also obtaining signage for the vacant lot across River Street. O'Neill asked for input related to the EDA's goal related to existing City development staff continuing to implement efforts to recognize and support existing Monticello businesses. Johnson emphasized that communication is key to improving perception. Schumann pointed out that the IEDC's roundtable discussions provide an opportunity for staff to share development information and get a, read on topics of relevance in the business community. Staff also look to the IEDC for input and assistance in reaching out to the broader community. Schumann pointed out that the EDA had not yet addressed its goal of expanding the tax base by developing a spending plan for the $700,000 in increment remaining in TIF 1-6. She noted that as an unrestricted, decertified district with no timeframe for utilizing the increment, TIF 1-6 is a tool in the EDA's toolkit. Tapper also suggested that the EDA could borrow against funds remaining in TIF 1-5 after the completion of the 7h Street extension project. Schumann pointed out that the EDA's Redevelopment policy had established focus areas in support of the Enhancing Downtown goal included in the workplan. Tapper noted that the EDA had acted on spending increment from TIF 1-22. Schumann pointed out that the EDA also has the ability to borrow against future increment in 1-22. Hinz asked if any TIF districts were due to decertify in 2015-2016. Schumann said that the Dahlheimer and Walker districts would be coming off the books. She noted that Omdahl is also preparing a memo related to the status of the Landmark Square district. O'Neill suggested that the EDA may want to explore an option to earmark a portion of a decertifying district for a levy to be used for economic development. Schumann also explained that the 2012 TIF management plan is due for revision and that this cost should be included in the 2016 EDA budget. Steve Johnson noted that staff continues to work to address the goal of supporting the efforts of ReSTOREing Downtown by meeting monthly to coordinate activities and address issues. Davidson asked if there is a mechanism for reporting progress. Schumann suggested that updates could be included in the Director's report. Schumann noted that the EDA continues to be mindful of its facilitating redevelopment goal as it considers redevelopment options on properties such as 413 4t' Street. M Special EDA Minutes: 02/11/15 Hinz noted that the 2013 Housing goal statements were still valid and require attention. Several commissioners expressed interest in making it a priority to develop a spending plan to use available excess increment in existing housing TIF districts and in completing a housing study to determine the need for affordable/senior housing within the community. Hinz suggested inviting Tammy Omdahl from Northland to lead a workshop to explore these issues. O'Neill suggested also reviewing the bottom 2% of the housing stock to determine its potential for redevelopment. Schumann suggested that the EDA schedule an additional workshop to further consider its 2015 workplan. 4. Adiournment BILL TAPPER MOVED TO ADJOURN THE SPECIAL MEETING AT 5:48 P.M. TRACY HINZ SECONDED THE MOTION. MOTION CARRIED 7-0. Recorder: Approved: Attest: Kerry Burri Angela Schumann, Community Development Director MINUTES SPECIAL MEETING - ECONOMIC DEVELOPMENT AUTHORITY Wednesday, March 11 1h, 2015 — 4:30 PM Academy Room, Monticello Community Center Present: Bill Tapper, Tracy Hinz, Jim Davidson, Steve Johnson, Tom Perrault, Lloyd Hilgart Absent: Bill Demeules Others: Angela Schumann, Wayne Oberg 1. Call to order Bill Tapper called the special meeting to order at 4:35 p.m. 2. Purpose The purpose of the workshop is to develop 2015 EDA Workplan goals and objectives. 3. Consideration of Workplan Goals and Obiectives Angela Schumann noted that the EDA had discussed the effectiveness of Market Matching and identified the need for additional resources to affect an action plan to address economic development goals at its February 11th, 2015 workshop. Schumann indicated that she had drafted a 2015 EDA workplan mission statement in an effort to summarize current EDA perspectives. The draft mission statement is as follows: "The EDA's 2015 work plan is adopted in support of achieving the goals of the Monticello Comprehensive Plan. The EDA will be proactive by developing and undertaking actions for achievement of the Comprehensive Plan's Economic Development goals and will be reactive in responding to economic development opportunities as they arise in the most timely and effective manner possible. The EDA shall utilize the economic development strategies of the Comprehensive Plan as a guide for action." TRACY HINZ MOVED TO ADOPT THE DRAFT WORKPLAN MISSION STATEMENT FOR THE 2015 EDA WORKPLAN. JIM DAVIDSON SECONDED THE MOTION. MOTION CARRIED 6 -0. Schumann also proposed draft action statements related to EDA goals, (Attracting and Retaining Jobs, Expanding the Tax Base, Enhancing Downtown, Facilitating Redevelopment and Housing) to prompt discussion related to the relevance and priority of each statement. The EDA discussed and took action related to draft action statements 9 1 -4 and #11 as part of the 2015 EDA Workplan. The additional draft action statements Special EDA Minutes: 03/03/15 are cited as well to outline the overall draft action statement structure. These will be discussed at an upcoming workplan session. 1. Research for implementation the adoption of a 2016 EDA (and HRA) levy. Schumann indicated that many Minnesota cities use an EDA levy (tax) as a recurring source for funding the operational costs of EDA management. Funds can be used for general administration, marketing, and staffing. Wayne Oberg suggested that the EDA would not need to request a budget transfer from the City's General Fund if it were to adopt its own levy. Schumann suggested that an EDA levy would generate an estimated $217,000. Oberg said that EDA levy funding would be unrestricted and carry over year to year. TRACY HINZ MOVED TO ADOPT DRAFT ACTION STATEMENT #1, "RESEARCH FOR IMPLEMENTATION THE ADOPTION OF A 2016 EDA (AND HRA) LEVY ", AS PART OF THE 2015 EDA WORKPLAN. STEVE JOHNSON SECONDED THE MOTION. MOTION CARRIED 5 -1 WITH TOM PERRAULT VOTING IN DISSENT. Perrault indicated that he had voted against this draft action statement because it would allow the EDA taxing authority despite not having been elected. 2. Research for implementation the use of tax abatement, including specific use criteria. Schumann suggested that tax abatement may be a less complex and expensive funding option than establishing a redevelopment district. She cautioned that tax abatement requires very specific criteria and that public perception may vary as to what constitutes acceptable use. Schumann pointed out that moving forward with preliminary research would answer questions and prompt broader discussions with the City Council. TRACY HINZ MOVED TO ADOPT DRAFT ACTION STATEMENT 92, "RESEARCH FOR IMPLEMENTATION THE USE OF TAX ABATEMENT, INCLUDING SPECIFIC USE CRITERIA ", AS PART OF THE 2015 EDA WORKPLAN. STEVE JOHNSON SECONDED THE MOTION. MOTION CARRIED 6 -0. 3. Clearly understand allowable uses of pooled housing increment, including amount, excess and possible identification of priority locations of use. Schumann suggested that it would be useful to determine how much housing increment is available and pooling opportunities resulting from excess increment. She also recommended defining in- district and out -of- district limitations and restrictions related to how housing increment can be used. 2 Special EDA Minutes: 03/03/15 Tracy Hinz requested a breakdown of pooled resources available within each district. She also pointed to the need to create an existing housing inventory. Schumann suggested that the EDA not only focus on what they can do but also to identify what they want to do in terms of housing. There was some discussion about potentially combining draft action statements 93 and #11. (See #11 below.) Schumann agreed to refine both statements for further consideration at the next workplan session. She suggested that 93 would focus more on financial tools and #11 would focus on properties more suitable for incentivized rehabilitation than demolition. BILL TAPPER MOVED TO TABLE ACTION ON DRAFT ACTION STATEMENT 93, "CLEARLY UNDERSTAND ALLOWABLE USES OF POOLED HOUSING INCREMENT, INCLUDING AMOUNT, EXCESS AND POSSIBLE IDENTIFICATION OF PRIORITY LOCATIONS OF USE ", AND DRAFT ACTION STATEMENT 911, EXAMINE HOUSING STOCK FOR AGING OR BLIGHTED PROPERTIES FOR OPPORTUNITIES TO REDEVELOP AND /OR REVITALIZE; RESEARCH PROGRAM OPPORTUNITIES ". TRACY HINZ SECONDED THE MOTION. MOTION CARRIED 6 -0. 4. Continue to support redevelopment efforts for Block 34. STEVE JOHNSON MOVED TO ADOPT DRAFT ACTION STATEMENT 94, "CONTINUE TO SUPPORT REDEVELOPMENT EFFORTS FOR BLOCK 34" AS PART OF THE 2015 EDA WORKPLAN. JIM DAVIDSON SECONDED THE MOTION. MOTION CARRIED 6 -0. 5. Engage as a partner in other redevelopment opportunities as they arise, with a specific emphasis on the four corners of TH 25 /CSAH 75. Schumann suggested that adopting this draft action statement would enable the EDA to focus its spending priorities but would also require that the Redevelopment Priorities Policy be amended. She noted that the EDA may instead prefer to amend the draft action statement to include Blocks 52 & 53. This issue is to be further considered at an upcoming workplan session. 6. Actively market industrial development at the Monticello Business Center (Otter Creek Business Park). 7. Encourage more proactive lead development and response in all market segments to support a diversified tax base. Special EDA Minutes: 03/03/15 8. Develop and re- establish a dedicated economic development staff position to facilitate and support the accomplishment of Comprehensive Plan goals. 9. Market EDA incentive programs in a more proactive and far- reaching manner. 10. Actively market for sale for development the EDA -owned properties at Cedar Street, 349 West Broadway and 413 W. 4th Street. 11. Examine housing stock for aging or blighted properties for opportunities to redevelop and /or revitalize; research program opportunities This draft action statement was considered in relation to draft action statement 43. (Refer to 93 above.) Schumann suggested that the EDA schedule an additional workshop at 4:30 p.m. on March 23rd to further consider its 2015 workplan. 4. Adiournment BILL TAPPER MOVED TO ADJOURN THE SPECIAL MEETING AT 6:55 P.M. TRACY HINZ SECONDED THE MOTION. MOTION CARRIED 6 -0. Recorder: Kerry Burri Approved: Attest: Angela Schumann, Community Development Director F MINUTES REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, March 111h, 2015, Mississippi Room, Monticello Community Center Present: Bill Tapper, Tracy Hinz, Jim Davidson, Steve Johnson, Tom Perrault, Lloyd Hilgart Absent: Bill Demeules Others: Angela Schumann, Wayne Oberg 1. Call to Order Bill Tapper called the meeting to order at 6:00 p.m. 2. Roll Call 3. Approval of Minutes TOM PERRAULT MOVED TO TABLE THE FEBRUARY 11TU, 2015 SPECIAL EDA MEETING MINUTES. TRACY HINZ SECONDED THE MOTION. MOTION LLOYD HILGART MOVED TO APPROVE THE FEBRUARY 11TU, 2015 REGULAR EDA MEETING MINUTES. STEVE JOHNSON SECONDED THE MOTION. MOTION CARRIED 6 -0. 4. Consideration of adding items to the agenda None 5. Consideration of approving payment of bills LLOYD HILGART MOVED TO APPROVE PAYMENT OF BILLS THROUGH FEBRUARY 2015. JIM DAVIDSON SECONDED THE MOTION. MOTION CARRIED 6 -0. 6. Consideration to accept into the record a statement of Conflict -of- Interest Disclosure by Commissioner Steve Johnson Schumann reported that Steve Johnson had submitted a Conflict -of- Interest Disclosure form which would be entered into the formal record. Johnson stated that by signing the form he certified that he had received a copy of Minnesota Statute 469.098 Conflict -of- Interest, that he had read and understood the policy, and that he agreed to comply with the policy. He read that the form required that he describe any relationships, transactions, positions he holds (volunteer or otherwise), or circumstances he believed could contribute to an actual or possible conflict of interest between the EDA and his personal interests, financial or otherwise. Johnson stated that: EDA Minutes: 3/11/15 1) He owns commercial property on Block 52 in the downtown area of Monticello, Minnesota. 2) A potential conflict may arise with ownership of downtown commercial property (Block 52) and his responsibilities in regards to his position of commissioner on the Monticello EDA. 3) He will refrain from any official discussion, decisions, votes or any matter before the EDA that would have financial implications regarding his holdings on Block 52 in downtown Monticello. 4) When addressing by any means potential development or financial matters regarding Block 52, he will be representing in whole or in part, his own interests in this block as a private citizen and not any public interests of the City of Monticello or the Monticello EDA. Johnson certified that the information set forth above is true and complete to the best of his knowledge. He noted that he had signed and dated the document. TRACY HINZ MOVED TO ACCEPT THE CONFLICT OF INTEREST CERTIFICATION AND DISCLOSURE BY COMMISSIONER STEVE JOHNSON AND TO ENTER SAID STATEMENT AND ACCEPTANCE INTO THE MINUTES OF THE ECONOMIC DEVELOPMENT AUTHORITY. JIM DAVIDSON SECONDED THE MOTION. MOTION CARRIED 5 -0. (Steve Johnson did not vote.) 7. Consideration to adopt a Resolution for Modification of the Tax Increment Financing Plan for Tax Increment Financing District No. 1 -36 and Tax Increment Financing District No. 1 -37 Tammy Omdahl of Northland Securities explained that in December 2014, the EDA had approved modifications to the budget for TIF Districts 36 and 37 to provide for actions the EDA had taken nearly a decade ago. She said that the State Auditor's Office had agreed with the action taken but noted that a public notice and hearing process must be conducted. Omdahl estimated that the hearing process would cost $5,000 in legal and consultant fees. She noted that the original loan reimbursement would be reapportioned among the County, the School District and the City. Hinz asked if it would be an option to put funds reapportioned to the City back into the interfund loan. Omdahl said that would be a lawful use of those funds but added that it would be a decision of the Council. Wayne Oberg said that he would not recommend that Council redistribute the funds to the EDA. He noted that, in the past, funds that were reapportioned to the City had been used for capital projects rather than for operations. Omdahl suggested that the EDA could also satisfy the state requirement by rescinding its approval of the prior modifications to TIF 36 and 37 and adopting a new resolution approving the modifications to plans for the districts. This would also allow the EDA to decertify TIF 37 (as of the end of 2014) having collected $122,113 of the original loan. TRACY HINZ MOVED TO ADOPT A RESOLUTION PARTIALLY RESCINDING EDA Minutes: 3/11/15 RESOLUTION NO. 2014 -096 AND APPROVING A REVISED MODIFICATION OF THE TAX INCREMENT FINANCING PLANS FOR TAX INCREMENT DISTRICT NO. 1 -36 AND TAX INCREMENT FINANCING DISTRICT NO. 1 -37. LLOYD HILGART SECONDED THE MOTION. MOTION CARRIED 6 -0. 8. Consideration of accepting bids and awarding the contract for the abatement and demolition of the building located at 100 Broadway East Schumann noted that Veit & Company of Rogers, MN, had submitted the low bid of $26,253 for abatement and demolition of the building located at 100 Broadway East. Demolition preparation activities are scheduled to begin April 15th and be completed by May 30th, 2015 so that work can begin on TH 25 /CSAH 75 intersection improvements. Bill Tapper asked how unknowns related to the site would impact the project deadline. Schumann said that WSB's Ryan Spencer had recommended proceeding with the demolition as scheduled. Schumann noted that WSB's contract provided for a preliminary level of testing to determine the level of site contamination. WSB would then set up a series of next steps and timelines depending on the outcome of that testing. Costs related to next steps have not been approved by the EDA. Tracy Hinz asked how information about this project would be communicated to citizens. Schumann said that, as part of their contract, WSB will set up a series of community meetings to address lane closures, timing and construction schedules. Hinz asked if this approach would begin prior to demolition. Schumann indicated that she would convey the comment to Shibani Bisson so that meetings can be timed accordingly. LLOYD HILGART MOVED TO ACCEPT BIDS AND AWARD THE CONTRACT IN THE AMOUNT OF $26,253.00 TO VEIT & COMPANY, INC FOR THE ABATEMENT AND DEMOLITION OF THE BUILDING LOCATED AT 100 BROADWAY EAST. STEVE JOHNSON SECONDED THE MOTION. MOTION CARRIED 6 -0. 9. Consideration of Director's Report Interchange Planning Study — City Council approved an interchange planning study. 10. Adiournment LLOYD HILGART MOVED TO ADJOURN THE MEETING AT 6:37 PM. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED 6 -0. Recorder: Kerry Burri Approved: Attest: EDA Representative EDA Agenda: 4/08/15 5. Consideration of approving payment of bills (WO) A. REFERENCE AND BACKGROUND: Invoices submitted during the previous month are included for review and consideration. B. ALTERNATIVE ACTIONS: 1. Motion to approve payment of bills through March 2015. 2. Motion to approve the payment of bills through March 2015 with changes directed by the EDA. C. STAFF RECOMMENDATION: Staff recommends approval of payment for invoices submitted. D. SUPPORTING DATA: Invoices Accounts Payable C1ii OF Transactions by Account � User: Debbie.Davidson eRo Printed: 03/04/2015 - 11:21AM MO en- Batch: 00202.03.2015 Account Number Vendor Description GL Date Check No Amount PO No 213 - 46301 - 430400 KENNEDY AND GRAVEN CHAR] General EDA Matters through 1/31/15 03/10/2015 113770 555.00 213 - 46301 - 430400 KENNEDY AND GRAVEN CHAR] BLK034 TIE District through 1/31/15 03/10/2015 113770 925.00 Vendor Subtotal for Dept:46301 1,480.00 213 - 46522 - 438300 CENTERPOINT ENERGY 10311600-0 Final Bill 03/10/2015 113750 121.95 Vendor Subtotal for Dept:46522 121.95 The preceding list of bills payable was reviewed and approved for payment. Date: 4 -8 -15 Approved by Tracy Hinz, Treasurer Subtotal for Fund: 213 1,601.95 Report Total: 1,601.95 AP- Transactions by Account (03/04/2015 - 11:21 AM) Page 1 Accounts Payable CJTY OF Transactions by Account � 0 User: Julie.Cheney Monti eRo Printed: 03/18/2015 - 12:55PM Mo Batch: 00203.03.2015 Account Number Vendor Description GL Date Check No Amount PO No 213 - 46301 - 430400 CAMPBELL KNUTSON PA Feb 2015 - General 03/24/2015 0 150.00 Vendor Subtotal for Dept:46301 150.00 213-46301-431990 WSB & ASSOCIATES INC BLK034 - Environment Does - Jan 201 03/24/2015 0 4,658.00 213-46301-431990 WSB & ASSOCIATES INC Economic Development & Market Ma 03/24/2015 0 4,000.00 Vendor Subtotal for Dept:46301 8,658.00 213-46301-431990 HARRY LANTTO 3/11/15 EDA Meeting Recording 03/24/2015 0 60.00 Vendor Subtotal for Dept:46301 60.00 213-46301-431990 WILSON DEVELOPMENT SERVI( BLK034 - Acquistion & relocation cor 03/24/2015 0 592.00 Vendor Subtotal for Dept:46301 592.00 213-46301-431990 PATCHIN MESSNER DODD AND I BLK034 - market value appraisal for 1 03/24/2015 0 5,000.00 Vendor Subtotal for Dept:46301 5,000.00 The preceding list of bills payable was reviewed and approved for payment. Subtotal for Fund: 213 14,460.00 Date: 4/8/15 Approved by: Report Total: 14,460.00 Tracy Hinz, Treasurer AP- Transactions by Account (03/18/2015 - 12:55 PM) Page 1 Accounts Payable CJTY Or Transactions by Account User: Julie.Cheney Monti eRo Printed: 03/13/2015 - 11:47AM Mo Batch: 00201.03.2015 Account Number Vendor Description GL Date Check No Amount PO No 213 - 00000 - 362970 US BANK CORPORATE PMT SYS US Bank Rebate Q4 2014 03/24/2015 0 -22.62 Vendor Subtotal for Dept:00000 -22.62 213 - 46500 - 443990 US BANK CORPORATE PMT SYS Dominos Pizza - dinner during meeting 03/24/2015 0 47.97 Vendor Subtotal for Dept:46500 47.97 213-46522-431000 US BANK CORPORATE PMT SYS Advanced Disposal - January 2015 03/24/2015 0 10.55 Vendor Subtotal for Dept:46522 10.55 Subtotal for Fund: 213 35.90 Report Total: 35.90 The preceding list of bills payable was reviewed and approved for payment. Date: 4 -8 -15 Approved by: Tracy Hinz, Treasurer AP- Transactions by Account (03/13/2015 - 11:47 AM) Page 1 Accounts Payable C1ii OF Transactions by Account � User: Julie.Cheney eRo Printed: 04/01/2015 - 9:24AM MO en- Batch: 00215.03.2015 Account Number Vendor Description GL Date Check No Amount PO No 213 - 46522 - 438100 XCEL ENERGY ZCULPS - 51- 0623082 -8 03/31/2015 0 17.09 Vendor Subtotal for Dept:46522 17.09 Subtotal for Fund: 213 17.09 Report Total: 17.09 The preceding list of bills payable was reviewed and approved for payment. Date: 4/8/15. Approved by: Tracy Hinz, Treasurer AP- Transactions by Account (04/01/2015 - 9:24 AM) Page 1 G A. B. C. D. EDA Agenda — 04/08/15 Consideration to Elect Officers. (AS) REFERENCE AND BACKGROUND The EDA makes one -year appointments for the officer positions of President, Vice - President, Secretary and Treasurer at its annual meeting in February, per EDA bylaws. However, the item was not provided for as part of the February agenda and therefore appointments are requested to be made at this time. The election of officers is an internal function of the EDA and does not require ratification by the City Council. Currently, the officer positions are held as follows: President: Bill Demeules Vice President: Bill Tapper Secretary: Staff as Executive Director of EDA Treasurer: Tracy Hinz Vice Treasurer: OPEN See below for reference on current member terms. Economic Development Authority (6 -year staggered terms) Bill Tapper Tracy Hinz Jim Davidson Bill Demeules Steve Johnson Tom Perrault (voting) Lloyd Hilgart (voting) ALTERNATIVE ACTIONS 1. and Motion to appoint Commissioner as EDA Vice - President, as EDA Vice - Treasurer. STAFF RECOMMENDATION None. SUPPORTING DATA None. 6 yr 12/2015 6 yr 12/2016 6 yr 12/2020 6 yr 12/2018 6 yr 12/2017 Council rep Council rep appointed 1/12/15 appointed 1/12/15 as EDA President, as EDA Treasurer EDA Agenda — 04/08/15 7. Consideration to review EDA Bvlaws & Enabling Resolution. (AS) A. REFERENCE AND BACKGROUND The EDA is asked to review the Bylaws of the Economic Development Authority and to adopt the changes recommended in an annual review by the EDA attorney, as well as to recommend any additional amendments by the Commissioners. The EDA's bylaws outline the role of the EDA officers, executive director, and the general meeting rules and procedures. Kennedy & Graven has reviewed the bylaws and has noted that the EDA Ordinance has since been amended so that it exists purely to refer to the EDA's Enabling Resolution. As such, other than the first reference to the EDA Ordinance in Article II, it is recommended that the references to the Ordinance in the other sections of the bylaws be deleted: Kennedy & Graven has found that no changes other than those proposed are necessary at this time from a legal or statutory standpoint. No public hearing is required to amend the bylaws. Should the EDA recommend amendments to the Enabling Resolution, a public hearing is required, and subsequent review and ratification by the City Council is also required. B. ALTERNATIVE ACTIONS Motion to adopt the amendments to EDA bylaws as proposed and presented April 8t', 2015. 2. If other amendment is requested: Motion to direct staff to prepare amendments to the bylaws and /or Enabling Resolution of Economic Development Authority as may be directed by the EDA. C. STAFF RECOMMENDATION Consistent with the EDA's Attorney, staff believes that the bylaws of the EDA continue to accurately reflect EDA practice and are consistent with the EDA's adopted Enabling Resolution, subject to those minor amendments recommended with this report. Additionally, staff and the attorney have reviewed the Enabling Resolution and have recommended no amendments at this time. D. SUPPORTING DATA A. Bylaws of the Economic Development Authority, proposed amendments B. Bylaws of the Economic Development Authority, March 12th, 2014 C. EDA Enabling Resolution D. EDA Ordinance 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 he "Ofdina-nee"). 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 other instruments executed by the Authority; and in the case of the resignation or death of the 1 325599x67 MNI MN 190-130 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 any Authority- approved method, including without limitation check, wire transfer, or credit card; (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 incapacitated. Section 7. Public Money. Authority money is public money. ARTICLE IV - EXECUTIVE DIRECTOR The City Administrator 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 325599x67 MNI MN 190-130 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 Ofdi ,a -nee, 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 hire a general counsel for its legal needs. The city attorney or general counsel, as determined by 3 325599x67 MNI MN 190-130 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 -wee ien 2 3 4 of the Ofdi ^„ee. Section 2. Limitations of Power. Shall be in accordance with the Enabling Resolution- -A:P- d- SS ee ti- ei2 3 5 ^r*'4° 04Ai:A^„ePa. 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 of Ofdi a -n , the Enabling Resolution ^„a n,.a:,, shall control. Section 3. Effective Date. These bylaws are effective upon their adoption by the Authority. Dated: , 2015. Signed: President (Seal) Executive Director 4 325599x67 MNI MN 190-130 Document comparison by Workshare Professional on Thursday, April 02, 2015 10:36:12 AM Input: Document 1 ID Powerpocs: //DOCSOPEN/325599/6 Description DOCSOPEN- #325599 -v6- Monticello EDA_bylaws Document 2 ID file: / /C: /Documents and Settings /mni /Application Data /OpenText /DM /Temp /DOCSOPEN- #325599 -v7- Monticello EDA_bylaws.doc Description DOCSOPEN- #325599 -v7- Monticello EDA_bylaws Rendering set standard Legend: Insertion Pe „t; �r M P d 4-OM Moved to Style change Format change Moved doled, Inserted cell Deleted cell Moved cell Split /Merged cell Padding cell Statistics: Count Insertions 1 Deletions 7 Moved from 0 Moved to 0 Style change 0 Format changed 0 Total changes 8 CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY WRIGHT COUNTY, MINNESOTA RESOLUTION NO. 2014-024 RESOLUTION APPROVING AMENDMENT OF BYLAWS WHEREAS, the Board of Commissioners of the City of Monticello Economic Development Authority (the "Authority ") has considered proposed amendments to its Bylaws; and WHEREAS, the Board has determined that it is reasonable, expedient and in the best interest of the public to amend the Bylaws of the Authority to authorize the payment of Authority funds by any method authorized by the Authority, including without limitation check, wire transfer, or credit card payments; and WHEREAS, Article VIII, Section 1 of the Bylaws provides for amendments to the Bylaws by majority vote of the Board at any regular or special meeting of the Authority. NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners of the City of Monticello Economic Development Authority as follows: Resolution. The Authority's Bylaws are amended in the form attached to this 2. The Board hereby approves the amended Bylaws. Approved by the Board of Commissioners of the City of Monticello Economic Development Authority this 12th day of March, 2014. President dc ATTEST: ExWW Director /Secretary 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 other instruments executed by the Authority; and in the case of the resignation or death of the 3255990 MNI MN190 -130 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 any Authority- approved method, including without limitation check, wire transfer, or credit card; (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 incapacitated. Section 7. Public Money. Authority money is public money. ARTICLE IV - EXECUTIVE DIRECTOR The City Administrator 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 325599v6 MNI MN190 -136 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. QMorum. 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. Employees. 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 hire a general counsel for its legal needs. The city attorney or general counsel, as determined by 3 325599v6 MNI MN190 -130 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. Effective Date. These bylaws are effective upon their adoption by the Authority. Dated: 3 ,z. , 2014. (Seal) 2 325599v6 MN1 MN 190 -130 Signed: President S1&-e-eY Execu ive Director CITY OF MONTICELLO WRIGHT COUNTY, MINNESOTA RESOLUTION NO. 2013-010 AMENDED AND RESTATED RESOLUTION ENABLING THE CREATION OF THE CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY BE IT RESOLVED by the City Council of the City of Monticello, Minnesota ( "City ") as follows: Section 1. Background and Findings 1.01. The City is authorized by Minnesota Statutes, Sections 469.090 to 469.1081 (the "EDA Act ") to establish an economic development authority to coordinate and administer economic development and redevelopment plans and programs for the City. 1.02. By Ordinance No. 172, approved April 10, 1989 and codified in the City Code as Title II, Chapter 3 (the "Enabling Ordinance "), the City established the City of Monticello Economic Development Authority ( "EDA"), for the purpose of coordinating and administering economic development activities in and for the City. 1.03. By resolutions approved on October 22, 2007 and January 14, 2008, the City transferred to the EDA the control, authority and operation of all projects administered by the Housing and Redevelopment Authority in and for the City of Monticello and adopted an Amended and Restated Enabling Resolution (the "Enabling Resolution "), which superceded the Enabling Ordinance in all respects. 1.04. The City Council further amended the Enabling Resolution after a duly noticed public hearing on February 27, 2012. 1.05. The City Council has now determined to revise and clarify certain provisions of the Enabling Resolution by the adoption of this resolution. 1.06. The City Council has, in accordance with Minnesota Statutes Section 469.093, provided public notice and conducted a public hearing on the date hereof, at which all persons wishing to be heard were given an opportunity to express their views, concerning the proposed modifications to the Enabling Resolution. 1.07. This resolution constitutes an amendment and restatement of the Enabling Resolution of February 27, 2012, and supercedes such Enabling Resolution in all respects. Section 2. Enabling Authority. 2.01. The EDA was established pursuant to the EDA Act under the Enabling Ordinance as adopted April 10, 1989 and codified as Title II, Chapter 3 of the City Code, as amended and restated by this resolution. 2.02. The EDA shall be composed of 7 commissioners to be appointed by the Mayor and confirmed by the City Council. 2.03. Two of the commissioners shall be members of the City Council. The terms of office of the two members of the City Council shall coincide with their terms of office as members of the City Council. The remaining five (5) commissioners shall be initially appointed for terms of one, two, three, four, and five years respectively. Thereafter, all non - Council commissioners shall be appointed for six -year terms. 2.04. A vacancy is created in the membership of the EDA when a City Council member of the board of commissioners ends Council membership, when any commissioner ends EDA membership prior to expiration of his or her term of office, on the day following the expiration of a commissioner's term of office, or when a commissioner is removed by the City Council subject to the terms of Section 2.07 hereof . A vacancy for this or any other reason must be filled for a new term or the balance of the unexpired term, as applicable, in the manner in which the original appointment was made. 2.05. All of the commissioners who are not members of the City Council must be either residents of the City, business - owners in the City, or property- owners in the City. 2.06. All commissioners shall serve at the pleasure of the City Council, subject to the terms of Section 2.07 hereof. Vacancies shall be filled by appointment by the Mayor with the confirmation of the City Council. 2.07. A commissioner may be removed by the City Council for inefficiency, neglect of duty, or misconduct in office. A commissioner shall be removed only after a hearing. A copy of the charges must be given to the commissioner at least 10 days before the hearing. The commissioner must be given an opportunity to be heard in person or by the counsel at the hearing. When written charges have been submitted against the commissioner, the City Council may temporarily suspend the commissioner. If the City Council finds that those charges have not been substantiated, the commissioner shall be immediately reinstated. If a commissioner is removed, a record of the proceedings together with the charges and findings shall be filed in the office of the City Administrator. 2.08. The City Council shall make available to the FDA such appropriations as it deems fit for salaries, fees, and expenses necessary in the conduct of its work. The EDA shall have authority to expend all budgeted sums so appropriated and recommend the expenditures of other sums made available for its use from grants, gifts, and other sources for the purposes and activities authorized by this resolution. Section 3. Officers and Meetings. 3.01. The EDA shall elect a president, vice president, treasurer, assistant treasurer, and secretary annually. 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 other offices of the secretary and assistant treasurer need not be held by a commissioner. 3.02. The EDA shall adopt rules and procedures not inconsistent with the provisions of this Enabling Resolution or as provided in Minnesota Statutes, Section 469.096, and as may be necessary for the proper execution and conduct of its business. The EDA shall adopt bylaws and rules to govern its procedures and for the transaction of its business and shall keep a record of attendance at its meetings and/or resolutions, transactions, findings, and determinations showing the vote of each commissioner on each question requiring a vote, or if absent or abstaining from voting, indicating such fact. The records of the EDA shall be a public record, except for those items classified by law as nonpublic data. 3.03. The EDA shall meet at least quarterly. Special meetings may be called by the president as needed. 3.04. All administrative procedures, including contract for services, purchases of supplies, and financial transactions and duties shall be outlined in the bylaws of the EDA. Section 4. Staff. 4.01. The City Administrator, or any other person designated in writing by the City Administrator and approved by a majority of the EDA commissioners, shall be designated as Executive Director of the EDA. 4.02. Subject to limits set by the appropriations or other funds made available, the EDA 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 5. Functions, Powers, and Duties. 5.01. Except as specifically limited by the provisions of Section 6 of this Enabling Resolution, the EDA shall have the authority granted it pursuant to the EDA Act, 5.02. The EDA shall manage the Greater Monticello Enterprise Fund (the "Fund ") the purpose of which is to encourage economic development by making loans to private businesses. The EDA shall make loans to eligible businesses, and such loan(s) shall serve a public purpose as defined in the Greater Monticello Enterprise Fund Guidelines (Fund Guidelines). The Fund Guidelines are hereby adopted by reference and included in the bylaws of the EDA. No changes to the fund Guidelines shall be made without approval of the City Council. 5.03. The EDA may be a limited partner in a partnership whose purpose is consistent with the FDA's purpose. 5.04. The EDA may issue general obligation bonds and revenue bonds when authorized by the City Council and pledge as security for the bonds the full faith, credit, and resources of the City or such revenues as may be generated by projects undertaken by the EDA. 5.05. The EDA may cooperate with or act as agent for the federal or state government or a state public body, or an agency or instrumentality of a government or other public body to carry out the powers granted it by the EDA Act or any other related federal, state, or local law in the area of economic development district improvement. 5.06. The EDA may annually develop and present an economic development strategy and present it to the City Council for consideration and approval. 5.07. The EDA may join an official, industrial, commercial, or trade association or other organization concerned with such purposes, hold reception of officials who may contribute to advancing the City and its economic development, and carry out other appropriate public relations activities to promote the city and its economic development. 5.08. The EDA may perform such other duties which may be lawfully assigned to it by the City. All city employees shall, upon request and within a reasonable time, furnish the EDA or its employees or agents such available records or information as may be required in its work. The EDA or its employees or agents may, in the performance of official duties, enter upon lands and make examinations or surveys in the same manner as other authorized City agents or employees and shall have such other powers as are required for the performance of official functions in carrying out the purposes of this resolution. Section 6. Limitations of Power. 6.01. The following limits apply to the EDA and its operation: (a) The sale of bonds or other obligations of the EDA must be approved by the City Council. (b) The EDA must follow the budget process for City departments in accordance with City policies, ordinances, and resolutions and the City charter. (c) Development and redevelopment actions of the EDA must be in conformity to the City comprehensive plan and official controls implementing the comprehensive plan. (d) The EDA must submit its plans for development and redevelopment to the City Council for approval in accordance with City planning procedures and laws. (e) Except when previously pledged by the EDA, the City Council may, by resolution, require the EDA to transfer any portion of the reserves generated by activities of the EDA that the City Council determines are not necessary for the successful operation of the EDA to the debt service funds of the city to be used solely to reduce tax levies for bonded indebtedness of the City. (f) The administrative structure and management practices and policies of the EDA must be approved by the City Council. (g) The EDA shall submit all planned activities for influencing the action of any other governmental agency, subdivision, or body to the City Council for approval. 6.02. The EDA may exercise all the powers under the EDA Act, including, but not limited to, the following: (a) all powers under the HRA Act. (b) all powers of a city under Minnesota Statutes, Section 469.124 to 469.134. (c) all powers and duties of a redevelopment agency under Minnesota Statutes, Sections 469.152 to 469.165 for a purpose in the HRA Act or the EDA Act, and all powers and duties in the HRA Act and the EDA Act for a purpose in Minnesota Statutes, Sections 469.152 to 469.165. (d) the authority to acquire property, exercise the right of eminent domain; make contracts for the purpose of redevelopment and economic development; serve as a limited partner in a partnership whose purpose is consistent with the EDA's purpose; buy supplies and materials needed to carry out development within the EDA Act; and operate and maintain public parking facilities. (e) the authority to issue bonds in accordance with the EDA Act and the HRA Act. (f) the authority to levy special benefit taxes in accordance with Section 469.033, subdivision 6 of the HRA Act in order to pay or finance public redevelopment costs (as defined in the HRA Act), subject to approval by the City Council in accordance with Section 469.033, subdivision 6. (g) all powers under Minnesota Statutes, Sections 469.474 to 469.179. 6.03. As provided in the EDA Act, it is the intention of the City Council that nothing in this resolution nor any activities of the EDA are to be construed to impair the obligations of the City or HRA under any of their contracts or to affect in any detrimental manner the rights and privileges of a holder of a bond or other obligation heretofore issued by the City, the EDA or the HRA. Section 7. Implementation. 7.01. The City Council will from time to time and at the appropriate time adopt such ordinances and resolutions as are required and permitted by the EDA Act to give full effect to this resolution. 7.02. The Mayor, the City Administrator, and other appropriate City officials are authorized and directed to take the actions and execute and deliver the documents necessary to give full effect to this resolution. 7.03. Nothing in this resolution is intended to prevent the City from modifying this Enabling Resolution to impose new or different limitations on the EDA as authorized by the EDA Act. ADOPTED BY the City Council of the City of Monticello on this 25th day of March, 2013. CITY OF MONTICELLO Clint Herbst, Mayor ATTEST: J46XVII, City Administrator CHAPTER 3 ECONOMIC DEVELOPMENT AUTHORITY SECTION: 2 -3 -1: Recitals 2 -3 -2: Powers Allocated to EDA 2 -3 -3: No Powers Allocated to HRA 2 -3 -4: Powers Retained by City 2 -3 -5: Amendment 2 -3 -6: Codification 2 -3 -1: Creation As authorized by Minnesota Statutes Chapter 469, the City Council of Monticello has established an Economic Development Authority by passing an enabling resolution, the current version of which has been filed in the office of the City Clerk. (9551,2/27/12) (9469A, 12/10/07) MONTICELLO CITY CODE TITLE II / Chapter 3 / Page 1 EDA Agenda - 4/08/15 8. Consideration of Acceptance of EDA Fund Balance Report. (WO) A. REFERENCE AND BACKGROUND: The Finance Director will provide the fund balance report for the EDA General Fund at the regular meeting. The report will provides line item detail for all of the EDA's sub - funds, the majority of which are the tax increment districts within the City. In addition to TIF Districts, fund balance information for the EDA "General" sub -fund the GMEF are also reflected in the report. B. ALTERNATIVE ACTIONS: Motion to accept the current 2015 EDA Fund Balance Report. 2. Motion of other. C. STAFF RECOMMENDATION: None at this time. D. SUPPORTING DATA: To be provided at meeting R-12 R-13 H-23 H-24 R-22 H-26 H-29 H-29 R R-22 R-33 E-15 E-16 E-17 E-21 V DIST #6 DIST #19 DIST #20 DIST #22 DIST #24 DIST #29 DIST #30DIST #31DIST #34 DIST #35 DIST #36 DIST #37 DIST #38 DIST #39 V DIST #5 RAIN-Mississippi Prairie Downtown ST.Front CMHP UMC I-94 Landmark DALHMR Karlsburger Walker Suburban GMEF GENERAL V CONST. 5 DANCE Shores West Redev.Benedicts Porch Interchange Square II DISTRIB Foods Manufacturing EDA TOTALS Fund Balance (deficit) 1/1/14 (per ledger)$0 $676,800 $89,274 $100,121 $623,936 $43,206 $81,913 $89,420 #($235,708)$4,482 $15,028 $7,295 $0 $53 $1,071,963 $4,547,522 $7,115,305 REVENUE: Taxes $0 Property Rental $4,128 $1,250 $5,378 Loan Repayments-Principal $166,281 $166,281 Loan Repayments-Interest $1,761 $1,761 Tax increments ($23,748)$33,425 $16,072 $344,851 $47,732 $21,217 $8,247 $219,996 $66,593 $24,469 $12,604 $54,905 $826,363 Interest income $0 $30,992 $4,939 $4,906 $9,189 $2,124 $3,927 $4,218 $38 $208 $778 $0 $0 $2 $45,005 $60,195 $166,521 Other Misc. Revenue $6,259 $4 $6,263 Transfer in from debt service and other funds $93,000 $93,000 TOTAL Revenues $0 $7,244 $38,364 $20,978 $364,427 $49,856 $25,144 $12,465 $220,034 $208 $67,371 $24,469 $12,604 $54,907 $46,766 $320,730 $1,265,568 EXPENSES: Salaries $4,321 $4,321 Fringe benefits (PERA,FICA, Health)$1,613 $1,613 Dues, memberships $3,041 $3,041 Legal publication $0 $26 $26 $26 $26 $26 $26 $26 $26 $26 $20 $0 $0 $57 $311 Travel, Conferences, Schools $76 $76 Property taxes $1,512 $1,512 Prof. services--legal $0 $3,219 $17,724 $20,943 Prof. services--engr $5,379 $5,379 Prof. services--misc.,$0 $9,555 $0 $33,951 $43,506 Marketing $49,144 $49,144 Interest expense--debt $0 Landheld for Resale Adjustment $53,100 $17,900 $71,000 Misc. other expense (incl. Fiscal Agent Fees)$2,285 $1,365 $3,650 TIF loans - PAYG or Interfund $5,786 $63,371 $42,959 $16,496 $6,075 $63,263 $29,453 $12,584 $54,905 $294,893 Land acquisition $155,497 $0 $155,497 Transfer to other funds - Debt Service $0 $218,353 $0 $218,353 TIF Surplus $595,959 $595,959 TOTAL Expenses $0 $0 $26 $5,812 $880,727 $42,985 $16,522 $6,101 $218,379 $26 $63,263 $31,764 $12,604 $54,905 $0 $136,083 $1,469,199 Fund Balance (deficit) 12/31/14 $0 $684,044 $127,612 $115,287 $107,636 $50,077 $90,535 $95,784 ($234,053)$4,664 $19,136 ($0)($0)$55 $1,118,729 $4,732,169 $6,911,674 Cash paid for Land (275,000)(275,000) Land market value adjustment 53,100 17,900 71,000 Prior Year Land Purchases (3,224,756)(3,224,756) Other Assets (1,365)(1,365) Liabilities 45,901 45,901 Prepaid (8,336)(8,336) Notes Receivable ($25,108)(9,581)(34,689) Cash Fund Balance $0 $684,044 $127,612 $115,287 ($114,264)$50,077 $90,535 $95,784 ($234,053)$4,664 $19,136 ($0)($0)$55 $1,093,621 $1,551,932 $3,484,429 O/S interfund loan balances as of 12/31/14 ($408,883)($144,125)($235,708)($110,975)($337,261) 2014 EDA Agenda — 04/08/15 9. Consideration to adopt Resolution EDA- 2015 -004 Decertifyin2 Tax Increment Financing District No. 1 -37. (AS) A. REFERENCE AND BACKGROUND: The EDA is asked to consider adopting a resolution decertifying Tax Increment Financing District No. 1 -37 (TIF37). In March, 2015, the EDA acted to adopt a resolution modifying Tax Increment Financing District No. 1 -37. The modification rescinded the EDA's previous approval of the prior modification to TIF 1 -37 in the prior Resolution No. 2014 -096, but ratified and confirmed all other approvals made in the Resolution. The EDA's adopted resolution approving modification of TIF 1 -37 modified the line item budgets without increasing the overall budget, "Estimated Tax Increment Project Costs ". Although the district decertification date is 12/31/2016, the district is being decertified early, with an effective date of 12/31/2014. The EDA will recall that this TIF District granted tax increment financing assistance to the developer in the form of a land write -down for the purchase price of property, and adopted an interfund loan resolution by which the EDA repaid the difference between the price paid by the developer and the fair market value of the property through tax increments from the TIF District. The TIF agreement provides that payments of principal and interest on the Interfund Loan would terminate on the date of termination of the TIF District; or the date that all amounts payable under the Interfund Loan have been paid in full, whichever occurs earliest. In the case of TIF 1 -37, the Interfund Loan is the only obligation payable from tax increments derived from the TIF District, and the district budget is not sufficient to allow for any additional payment of project costs (the interfund loan) after 2014. The interfund loan that was approved actually exceeded the authorized budget. As the EDA decided to not proceed with notice/hearing to allow for an increase to the budget, the TIF Plan for the district does not allow budgetary authority to pay the entire principal and interest on the Interfund Loan. The tax increment received from the County and applied to the Interfund Loan on August 1, 2014 was the final authorized payment on the Interfund Loan under the TIF Plan, and therefore the TIF District must be decertified as of that date. B. ALTERNATIVE ACTIONS 1. Motion to adopt Resolution EDA 2015 -004 Decertifying Tax Increment Financing District No. 1 -37. 2. Motion of other. EDA Agenda — 04/08/15 C. STAFF RECOMMWNDATION Staff supports Alternative Action No. 1. This action is required consistent with the EDA's previous action related to budget modification for the district. TIF 1 -37 will be decertified two years early and the City, County, and School district will directly benefit from an increase in tax base. D. SUPPORTING DATA A. Resolution EDA- 2015 -004 B. Resolution EDA- 2015 -003 CITY OF MONTICELLO WRIGHT COUNTY, MINNNESOTA ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. EDA- 2015 -004 RESOLUTION DECERTIFYING TAX INCREMENT FINANCING DISTRICT NO. 1 -37 BE IT RESOLVED By the City Council of the City of Monticello, Minnesota (the "City ") as follows: Section 1. Recitals. 1.01. The City previously established the Tax Increment Financing District No. 1 -37 (the "TIF District") within Central Monticello Redevelopment Project No. 1 in the City and approved a Tax Increment Financing Plan ( "TIF Plan") for the TIF District. 1.02. Pursuant to the terms of the Purchase and Redevelopment Contract between the City of Monticello Economic Development Authority, as assignee of the Housing and Redevelopment Authority in and for the City of Monticello, Minnesota (the "Authority ") and SL Real Estate Holdings, LLC (the "Redeveloper "), dated April 2, 2006 (the "Agreement"), the Authority conveyed certain property (the "Property ") to the Redeveloper, granted tax increment financing assistance to the Redeveloper in the form of a land write -down for the purchase price of the Property, and adopted an interfund loan resolution whereby the Authority repaid the difference between the price paid by the Redeveloper and the fair market value of the Property through tax increments from the TIF District (the " Interfund Loan"). The Agreement provides that payments of principal and interest on the Interfund Loan would terminate on (i) the date of termination of the TIF District; or (ii) the date that all amounts payable under the Interfund Loan have been paid in full, whichever occurs earliest. 1.03. The City has determined that the TIF Plan for the TIF District did not allow budgetary authority to pay the entire principal and interest on the Interfund Loan, and that the tax increment received from the County and applied to the Interfund Loan on August 1, 2014 was the final authorized payment on the Interfund Loan under the TIF Plan. 1.04. The Interfund Loan is the only obligation payable from tax increments derived from the TIF District; therefore, pursuant to Minnesota Statutes, Section 469.1763, subd. (b), the TIF District must be decertified on or after the date of the final payment on the Interfund Loan , as there are no additional obligations payable from tax increment derived from the TIF District. Section 2. TIF District Decertified, Filing. 2.01. The TIF District is hereby deemed decertified as of December 31, 2014. 2.02. Authority staff is authorized and directed to transmit a copy of this Resolution to Wright County with instructions to decertify the TIF District, it being the intent of the City and Authority that any tax increment derived from the TIF District and collected after December 31, 459029A NININMI90 -101 2014 should be redistributed by the County Auditor to the taxing jurisdictions within the TIF District. 2.03. Authority staff is directed to return any tax increment remaining after December 31, 2014 in the accounts established for the TIF District to the County Auditor for distribution to the taxing jurisdictions within the TIF District. Adopted by the City Council of the City of Monticello, Minnesota this day of April, 2015. Mayor ATTEST: City Administrator 459029v1 NlNINMI90 -101 2 CITY OF MONTICELLO WRIGHT COUNTY, MINNESOTA ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. EDA- 2015 -003 ACTION NO.2 PARTIALLY RESCINDING RESOLUTION NO. 2014-096 AND APPROVING A REVISED MODIFICATION OF THE TAX INCREMENT FINANCING PLANS FOR TAX INCREMENT DISTRICT NO. 1 -36 AND TAX INCREMENT FINANCING DISTRICT NO. 1 -37 WHEREAS, the City of Monticello Economic Development Authority (the "Authority") previously established its Tax Increment Financing District No. 1 -36 and Tax Increment Financing District No. 1 -37 (the "TIF Districts ") and approved Tax Increment Financing Plans (the "TIF Plans ") for the TIF Districts, pursuant to Minnesota Statutes, Sections 469.174 to 469.1794, as amended (the "TIF Act "); and WHEREA S� the Authority approved Resolution No, 2014 -096 on October 8, 2014 k1the "Prior Resolution'), which among other things authorized budgetary modifications to the TIF Plans resulting in an overall increase in budgeted project costs (the "Prior Modifications "), but has subsequently determined that consideration and approval of the Prior Modifications required publication of a notice of public hearing and the holding of a public hearing on such Prior Modifications; and WHEREAS, the Authority proposes a revised budgetary modification to the TIF Plans for the TIF Districts to reallocate budgetary authority among the project costs authorized in the original budget for the TIF Plans, not including financing (interest) costs to be paid or financed with tax increment (together, the "Modifications "); and WHEREAS, the Authority has investigated the facts and has caused to be prepared the Modifications; and WHEREAS, the Authority proposes rescinding its approval of the Prior Modifications in the Prior Resolution, and approving the Modifications, as such Modifications are authorized to be approved without notice and public hearing under Section 469.175, subd. 4 of the TIF Act. NOW, THEREFORE, BE IT RESOLVED, BY THE CITY OFMONTICELLO ECONOMIC DEVELOPMENT A UTHORITY: 1. The Authority hereby rescinds its approval of the Prior Modifications in the Prior Resolution, but ratifies and confirms all other approvals made in the Prior Resolution, including without limitation approval of budgetary modifications to its Tax Increment Financing District No. 1 -38. 2. The Authority finds, determines and declares that with respect to the Modifications: CITY OF MONTICELLO WRIGHT COUNTY, MINNESOTA ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. EDA- 2015 -003 a) The Authority is not modifying the boundaries of the TIF Districts, nor increasing the budget in the Modifications therefor, but is reallocating expenditures among the project costs previously authorized. b) The Authority affirms the findings previously made with respect to the TIF Districts. c) The Modifications conform to the general plan for the development of the City as a whole. d) The Modifications do not require a public hearing, pursuant to Section 469.175, Subd. 4 of the Act. 3. The Modifications to the TIF Plan for Tax Increment Financing District No. 1 -36 as set forth in Attachment 1 to this resolution are hereby approved and adopted. 4. The Modifications to the TIF Plan for Tax Increment Financing District No. 1 -37 as set forth in Attachment 2 to this resolution are hereby approved and adopted. 5. Subject to approval of the Modifications by the City Council, the Executive Director of the Authority is hereby authorized and directed to transmit a certified copy of this resolution and a certified copy of the City Council resolution approving and adopting the Modifications, together with Attachments 1 and 2, to the Office of the State Auditor, the Minnesota Department of Revenue, and Wright County. Approved this 11"' day of March, 2015, by the City of Monticello Economic Development Authority. ATTEST: Execu ' irector 2 r� President ATTACHMENT 1 MODIFICATION OF THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 1 -36 WITHIN THE CENTRAL MONTICELLO REDEVELOPMENT PROJECT NO.1 I. Background The City of Monticello (the "City ") originally established Tax Increment Financing District No. 1 -36 (the "District") within Central Monticello Redevelopment Project No. 1 (the "Redevelopment Project ") and adopted the Tax Increment Financing Plan (the "TIF Plan") therefor on August 22, 2005; The City and the Authority have now determined a need to modify the TIF Plan in order to amend the estimated use of tax increment; Nothing in this modification is intended to modify or supersede or alter the activities described in the original Redevelopment Program for Central Monticello Redevelopment Project No. 1. The TIF Plan remains in full force and effect and is not modified except as described in this modification document. II. TIF Plan Modification to TIF District No. 1-36 Use of Tax Increment Shown in Table A. 3 TABLE A Tax Increment Financing District No. 1 -36 Projected Tax Increment Original, Adopted Modification 8/22/2005 No.1 Estimated Tax Increment Revenues (from tax increment generated by the district) Tax increment revenues distributed from the county $680,000 $650,000 Interest and investment earnings $20,000 $50,000 Sales /lease proceeds $0 $0 Market value homestead credit $0 $0 Total Estimated Tax Increment Revenues $700,000 $700,000 Estimated Project /Financing Costs (to be paid or financed with tax increment) Project costs Land /building acquisition $50,000 $411,768 Site improvements /preparation costs $50,000 $135,776 Utilities $200,000 $0 Other qualifying improvements $200,000 $0 Construction of affordable housing $0 $0 Small city authorized costs, if not already included above $0 $0 Administrative costs $68,000 $20,456 Estimated Tax Increment Project Costs $568,000 $568,000 Estimated financing costs Interest expense $132,000 $132,000 Total Estimated Project/Financing Costs to be Paid from Tax Increment $700,000 $700,000 Estimated Financing Total amount of bonds to be issued 4 $600,000 $600,000 ATTACHMENT 2 MODIFICATION OF THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 1-37 WITHIN THE CENTRAL MONTICELLO REDEVELOPMENT PROJECT NO.1 I. Background The City of Monticello (the "City ") originally established Tax Increment Financing District No. 1 -37 (the "District ") within Central Monticello Redevelopment Project No. 1 (the "Redevelopment Project ") and adopted the Tax Increment Financing Plan (the "TIF Plan") therefor on April 24, 2006; The City and the Authority have now determined a need to modify the TIF Plan in order to amend the estimated use of tax increment; Nothing in this modification is intended to modify or supersede or alter the activities described in the original Redevelopment Program for Central Monticello Redevelopment Project No. 1. The TIF Plan remains in full force and effect and is not modified except as described in this modification document. II. TIF Plan Modification to TIF District No. 1-37 Use of Tax Increment Shown in Table A. 61 TABLE A Tax Increment Financing District No. 1 -37 Projected Tax Increment Estimated Financing Total amount of bonds to be issued rel $150,000 $150,000 Original, Adopted Modification 4/24/2006 No.1 Estimated Tax Increment Revenues (from tax increment generated by the district) Tax increment revenues distributed from the county $175,000 $175,000 Interest and investment earnings $0 $0 Sales /lease proceeds $0 $0 Market value homestead credit $0 $0 Total Estimated Tax Increment Revenues $175,000 $175,000 Estimated Project /Financing Costs (to be paid or financed with tax increment) Project costs Land /building acquisition $94,000 $122,113 Site improvements /preparation costs $5,000 $0 Utilities $5,000 $0 Other qualifying improvements $5,000 $0 Construction of affordable housing $0 $0 Small city authorized costs, if not already included above $0 $0 Administrative costs $16,000 $2,887 Estimated Tax Increment Project Costs $125,000 $125,000 Estimated financing costs Interest expense $50,000 $50,000 Total Estimated Project/Financing Costs to be Paid from Tax Increment $175,000 $175,000 Estimated Financing Total amount of bonds to be issued rel $150,000 $150,000 EXTRACT OF MINUTES OF A MEETING OF THE CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY WRIGHT COUNTY, MINNESOTA HELD: March 11, 2015 Pursuant to due call and notice thereof, a regular meeting of the City of Monticello Economic Development Authority, Wright County, Minnesota, was duly held at the Monticello City Hall on Wednesday, the 11`h day of March, 2015 at 6:00 p.m. for the purpose, in part, of rescinding modification of the Tax Increment Financing Plans for Tax Increment Financing District No. 1 -36 and Tax Increment Financing District No. 1 -37 and adopting a revised modification of the Tax Increment Financing Plans for Tax Increment Financing District No. 1 -36 and Tax Increment Financing District No. 1 -37. The following Commissioners were present: Hinz, Hilgart, Tapper, Johnson, Davidson, Perrault and the following were absent: Demeules Commissioner Hinz introduced the following resolution and moved its adoption: The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Hilgart and upon vote being taken thereon, the following voted in favor: Hinz, Hilgart, Tapper, Johnson, Davidson, Perrault and the following voted against the same: None Whereupon said resolution was declared duly passed and adopted. fd CERTIFICATION STATE OF MINNESOTA ) ss. COUNTY OF WRIGHT ) I, the undersigned, being the duly qualified and Executive Director of the City of Monticello Economic Development Authority, DO HEREBY CERTIFY that the attached resolution is a true and correct copy of an extract of minutes of a meeting of the City of Monticello Economic Development Authority, duly called and held, as such minutes relate to rescinding modification of the Tax Increment Financing Plans for Tax Increment Financing District No. 1 -36 and Tax Increment Financing District No. 1 -37 and adopting a revised modification of the Tax Increment Financing Plans for Tax Increment Financing District No. 1 -36 and Tax Increment Financing District No. 1 -37. WITNESS my hand as such Executive Director of the City of Monticello Economic Development Authority this 1 lb day of March, 2015. - t4� 0/&"' 111 Exwj#e Director EDA Agenda — 04/08/15 10. Consideration of approving a 2015 Farm Lease Agreement for Outlot F, Otter Creek Crossing. (WO /AS) A. REFERENCE AND BACKGROUND: The EDA is asked to approve a lease agreement between the EDA and Tom & Matt Spike for the farming of 13.6 acres of land at Otter Creek Crossing. The lease agreement is consistent with the farm lease agreement entered into with the same tenant for 2014, with exception of lease rent payment. The lease allows the tenant access to farm the property between May 15th and November 10th, 2015. The lease land area is not irrigated and is directly adjacent to land owned by the proposed lease tenant. The annual rental fee is recommended for increase for 2015. As the land is leased, the property is taxable. For 2015, taxes payable on the parcel are $1,365. The Finance Director has contacted the lessee regarding this amount and is awaiting confirmation for 2015 agreement. The agreement has been drafted for 2015 and includes a rental fee of $1,365. (In the previous year, the rental rate was set at $1,200.) Pending agreement with the previous lessee, the EDA is asked to authorize staff to execute the agreement. B. ALTERNATIVE ACTIONS: 1. Motion to authorize the EDA Executive Director and President to execute the Farm Lease agreement for Outlot F, Otter Creek Crossing as drafted. 2. Motion of other. C. STAFF RECOMAWNDATION: Staff recommends alternative 1. D. SUPPORTING DATA: A. Farm Lease, Outlot F, Otter Creek Crossing - Draft B. Wright County Property Report, Outlot F FARM LEASE THIS LEASE (the "Lease "), made this 15th day of April, 2015, by and between the City of Monticello Economic Development Authority, a public body corporate and politic and a political subdivision of the State of Minnesota (the "Authority "), and Matt and Tom Spike (the "Tenant "). 1. Property Description. The Authority hereby rents to the Tenant in consideration of the rents and promises hereinafter described the property (the "Property") generally described as PID 155171000060 containing approximately 13.6 acres and located along 90th Lane next to Otter Creek industrial park. The Property is legally described and depicted on Exhibit A attached hereto. 2. Term. The term of this Lease is for 6 months commencing on May 15th, 2015 and terminating on November 15th, 2015. 3. Rent. The annual rent due under this Lease is $1,356. The annual rent for the lease year shall be payable by August 1, 2015. 4. Authority Obligations. The Authority shall peaceably allow the Tenant to occupy the Property for normal and customary farming practices. The Tenant shall have reasonable access to the Property 24 hours per day, seven days per week for such purposes. 5. Tenant Obligations. Tenant shall be responsible for paying or doing the following: a. The Tenant shall occupy the Property for agricultural purposes only. The Tenant agrees to use normal and customary farming practices in the care and maintenance of the Property and, without limiting normal practices, keep the Property free of noxious weeds to the extent possible; b. The Tenant agrees to comply with all statutes, ordinances, rules, orders, regulations, and requirements of the federal, state, county, municipal and other units of government regulating the use of the Property; 402309v1 MNIMN190 -101 1 c. The Tenant shall allow access to the Property by the Authority and its agents during all reasonable hours for the purpose of examining the Property to ascertain compliance with the terms of this Lease and for any other lawful purpose; d. The Tenant shall not remove or move any existing structures or improvements made to the Property by the Authority. The Tenant may not store equipment on the Property for periods exceeding one week without coordinating such storage with the Authority; e. The Tenant shall not commit waste on the Property; f. Tenant shall refrain from using or applying any chemicals or products on Property which contains phosphorous; g. The Tenant shall plow back the Property prior to the termination of this Lease; and h. This Lease does not entitle Tenant to allow or authorize use of Property by any party for recreational purposes, including but not limited to hunting or the riding of all terrain or similar recreational vehicles. 6. Independent Entities. The Authority does not retain the Tenant as an agent of the Authority. The Tenant does not retain the Authority as an agent of the Tenant. The Authority shall not provide to the Tenant, its agents or employees, any benefits or expenses, including, but not limited to, insurance for liability or property, or ordinary business expenses. 7. Costs associated with Lease. The Authority is not responsible for paying any of the Tenant's costs associated with this Lease, including preparation of the Property for farming. The Tenant shall pay all costs related to farming the Property, including the cost of plowing the Property back prior to the termination of this Lease. 8. Insurance. The Tenant shall acquire and maintain property and liability insurance adequate for the Tenant's use of the Property. The Tenant shall provide proof of insurance upon request by the Authority. The Tenant, while performing any service or function related to this Lease, agrees to indemnify, hold harmless and defend the Authority and all its agents and employees from any and all claims, demands, actions or causes of action of whatever nature or character arising out of or by reason of the execution or performance of this Lease or use of the Property. 9. Assignment and Sublease Prohibited. The Tenant intends to farm the Property himself. The Tenant agrees that no assignment or sublease of the Property shall be effective without the prior written consent of the Authority. 10. Surrender of Possession. The Tenant shall surrender the Property to the Authority in good condition and repair upon termination of the Lease, whether by lapse of time or otherwise. 402309vI MNIMN190 -101 2 11. Termination Prior to Expiration. The Authority may, at any time after providing 90 days' written notice, terminate this Lease and take possession of the Property for any purpose deemed in the best interest of the Authority. The Authority shall allow the Tenant to remove crops with normal and customary farming practices or, if time does not so allow, return all rents paid for the year and compensate the Tenant at rates not exceeding the current market rate per acre for any crop planted but not harvested. 12. Remedy. If the Tenant fails to pay the rent when due or fails to perform any of the promises contained in this Lease, the Authority may, after furnishing the Tenant with a 30 -day written notice specifying the default, re -enter and take possession of the Property and hold the Property without such re- entering working a forfeiture of the rents to be paid by the Tenant for the full term of the Lease. If default occurs during cropping season, the Authority will harvest any and all remaining crops and apply proceeds from the sale thereof to any rent payment due or other outstanding obligations of the Tenant to the Authority. 13. Tenant's Default. In the event of one of the following acts, the Tenant shall be in default: a. The Tenant fails, neglects, or refuses to pay rent or any other monies agreed to be paid, as provided in this Lease when those amounts become due and payable, and if such failure continues for five days after written notification by the Authority; b. Any voluntary or involuntary petition or similar pleading, under any section of any bankruptcy act shall be filed by or against the Tenant or should any proceeding in a court or tribunal declare the Tenant insolvent or unable to pay debts; c. The Tenant fails, neglects, or refuses to keep and perform any other conditions of this Lease and if such failure continues for a period of 30 days after written notification by the Authority; or d. Should the Tenant make or attempt to make any assignment or sublease of any interest in the Lease or the Property without the prior written consent of the Authority. In the event of any default or violation of this Lease continuing more than 30 days after written notification of default by the Authority to the Tenant, the Authority may terminate the Lease and enter into and take possession of the Property. Possession of the Property in these conditions does not relieve the Tenant of the obligation to pay rent and abide by all other conditions of the Lease. In the event of any default or violation of the Lease continuing more than 30 days after written notification of default by the Authority to the Tenant, termination of the Lease and possession of the Property by the Authority, the Authority may lease the Property to another party without further obligations to the Tenant. 402309vI MNIMN190 -101 14. Loss and Damage. Tenant assumes and bears the risk of all loss and damage to the Property from any and every cause whatsoever, whether or not insured, except in the case of gross negligence or intentional misconduct on the part of the Authority, its employees, agents or contractors. No loss or damage to the Property or any part thereof shall impair any obligation of Tenant under this Lease and the Lease shall continue in full force and effect unless Tenant is unable to use the Property for the purposes intended under this Lease. 15. Limitation of Warranties and Liability. In no event shall the Authority be liable for special, incidental or consequential damages, including but not limited to lost profits, lost business opportunity, or damages related to Tenant's use or intended use of the Property. 16. Lease is Binding. This Lease shall be binding upon the parties hereto and their heirs, successors and assigns. 17. Notification. Notices related to this Lease shall be sent to the following addresses: a) As to the Authority: City of Monticello Economic Development Authority 505 Walnut Avenue, Suite 1 Monticello, MN 55362 Attn: Executive Director b) As to the Tenant: Matt and Tom Spike or to such other address as either party may notify the other of pursuant to this section. 18. Entire Lease. It is understood that this Lease contains all agreements, promises, and understandings between the Authority and Tenant regarding the subject matter hereof. This Lease supersedes any prior agreements between the parties regarding the subject matter hereof and any prior lease related to the Property. No modification to this Lease is binding unless made in writing and signed by the Authority and the Tenant. IN WITNESS WHEREOF, the parties have hereunto set their hands the day and year first above written. 402309vI MNIMN190 -101 4 CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY By: President By: Executive Director STATE OF MINNESOTA ) ss. COUNTY OF WRIGHT 1 The foregoing instrument was acknowledged before me this day of April, 2015 by and , the President and Executive Director, respectively, of the City of Monticello Economic Development Authority, a public body corporate and politic and political subdivision of the State of Minnesota, on behalf of the political subdivision. Notary Public 402309vI MNIMN190 -101 [Name of Tenant] STATE OF MINNESOTA ) ss. COUNTY OF WRIGHT ) The foregoing instrument was acknowledged before me this day of May, 2014 by Tenant. Notary Public 402309vI MNIMN190 -101 EXHIBIT A Legal Description and Depiction of Property 402309vI MNIMN190 -101 A -1 Property ID #: R155- 171 - 000060 Taxpayer ID Number: 248203 CITY OF MONTICELLO EDA % A/P 505 WALNUT ST STE 1 MONTICELLO MN 55362 -8831 Robert J Hiivala 2015 WRIGHT COUNTY AUDITOR/TREASURER i . 10 SECOND STREET N.W. ROOM 232 � � p BUFFALO, MN 55313 -1194 y 0 763 -682 -7572 or 763 -682 -7584 '+ees www.co.wright.mn.us Property ID #: R155- 171 - 000060 Taxpayer ID Number: 248203 CITY OF MONTICELLO EDA % A/P 505 WALNUT ST STE 1 MONTICELLO MN 55362 -8831 REFUNDS? $$$ You maybe eligible for one or even two refunds to reduce your property tax. ' Property Tax Taxes Payable Year 2014 2015 2015 2014 Values for Taxes Payable in 2nd Half Tax Amount VALUES & CLASSIFICATION Sentin March 2014 m x Taxes Payable Year: 2014 2015 Penalty Estimated Market Value: 129,900 136,700 Step Improvements Excluded: A. Agricultural market value credit Sect -10 Twp-121 Range -025 OTTER CREEK CROSSING(MONTICEL 13.67 AC OUTLOT F Homestead Exclusion: B. Other credits 1 Taxable Market Value: 129,900 136,700 New Improvements/ o m Expired Exclusions *: 7. City or Town (CITY OF MONTICELLO) 580.77 488.52 Q T Property Classification: AG NHSTD AG NHSTD Step PROPOSEDTAX Sent in November 2014 Proposed Tax: 1,356.00 2 c y 10. Special Taxing Districts A. Step PROPERTY TAX STATEMENT ° First-half Taxes 678.00 3 Second -half Taxes: 678.00 Total Taxes Due in 2015: 1,356.00 REFUNDS? $$$ You maybe eligible for one or even two refunds to reduce your property tax. ' Property Tax Taxes Payable Year 2014 2015 Statement Total Property Tax for 2015 $1,356.00 1. Use this amount on Form M1 PR to see if you are eligible fora property tax refund. File by August 15. If this box is checked, you owe delinquent taxes and are not eligible. 2nd Half Tax Amount Property Address: 2. Use these amounts on Form M1 PR to see if you are eligible fora special refund. m x 3. Your property taxes before credits 1,512.00 1,356.00 Bill Number: 67753 Penalty o m 4. Credits that reduce your property taxes Property Description: a A. Agricultural market value credit Sect -10 Twp-121 Range -025 OTTER CREEK CROSSING(MONTICEL 13.67 AC OUTLOT F n o. B. Other credits x y 5. Property taxes after credits 1,512.00 1,356.00 6. County 564.02 554.68 o m 0 m 7. City or Town (CITY OF MONTICELLO) 580.77 488.52 Q T ID Number: 248203 8. State General Tax .!> m 9. School District (0882) A. Voter approved levies 227.82 6.66 B. Other local levies 139.39 306.14 c y 10. Special Taxing Districts A. Special Assessment Breakdown: ° B. o C. D. 11. Non - school voter approved referenda levies 12. Total property tax before special assessments 1,512.00 1,356.00 13. Special Assessments on Your Property See Left for Breakdown of Special Assessments Special Assessment Totals 14. YOUR TOTAL PROPERTY TAX AND SPECIAL ASSESSMENTS 1,51200 1,356.00 PAYABLE 2015 2ND HALF PAYMENT STUB PLEASE READ THE BACK OF THIS STATEMENT FOR IMPORTANT INFORMATION TO AVOID PENALTY PAY ON OR BEFORE: NOVEMBER 15, 2015 Total Property Tax for 2015 $1,356.00 Property ID Number: R 155 - 171 - 000060 2nd Half Tax Amount $678.00 ? n Buffalo, MN 55313 -1194 m M. x� Bill Number: 67753 Penalty o m ID Number: 248203 2nd Half Total Amount Due O N m Zm> n 9 Q Z O MAKE CHECKS PAYABLE & MAIL TO: A Robert J Hiivala n c Wright County Auditor/Treasurer m T z 10 Second Street N.W., Room 232 j s Buffalo, MN 55313 -1194 m M. ❑ If your address has changed please check this box and PAYABLE 2015 1ST HALF PAYMENT STUB CITY OF MONTICELLO EDA show the change on the back of this stub. MAKE CHECKS PAYABLE & MAIL TO: % A/P Robert J Hiivala T c 505 WALNUT ST STE1 NoR eceiptUnlessRequestedYour­.Ie d�heki syourrecei ptThisRece iptis.dif�hekisnothonored MONTICELLO MN 55362 -8831 s Buffalo, MN 55313 -1194 PAYABLE 2015 1ST HALF PAYMENT STUB PLEASE READ THE BACK OF THIS STATEMENT FOR IMPORTANT INFORMATION TO AVOID PENALTY PAY ON OR BEFORE: MAY 15, 2015 Total Property Tax for 2015 $1,356.00 Property ID Number: R 155 - 171 - 000060 1st Half Tax Amount 0 $678.00 g x Bill Number: 67753 Penalty o m Q T ID Number: 248203 1st Half Tax Amount Due .!> CITY OF MONTICELLO EDA % A/P 505 WALNUT ST STE 1 MONTICELLO MN 55362 -8831 O A Z MAKE CHECKS PAYABLE & MAIL TO: i m n Robert J Hiivala T c Wright County Auditor/Treasurer m z 10 Second Street N.W., Room 232 s Buffalo, MN 55313 -1194 m z n ❑If your address has changed please check this box and show the change on the back of this stub. No Receipt Unless Requested. Your ­.Ie d she k is your receipt. This Receipt is void if 0-k is not honored. EDA Agenda: 04/08/15 11. Consideration of an update regarding EDA application for Administrative Lot Combination and Simple Subdivision for Lots 14 and 15, Block 34, Original Plat of Monticello. (AS) The following report was prepared and submitted as part of the Planning Commission agenda packet for April 7th, 2015. An update regarding the Commission's recommendation for action will be provided to the EDA on April 8th, 2015. Pending review by the Planning Commission and comment of the EDA, the item is scheduled to go before the Council on April 13th, 2015. As an update to the EDA, conveyance of the property will be scheduled for EDA consideration on May 8th, 2015. The EDA's attorney, Kennedy & Graven, has indicated that pursuant to MN Statute 465.035, the EDA is not required to hold a hearing for the conveyance, as the conveyance is for a public purpose to another political subdivision. B. ALTERNATIVE ACTIONS: No action is required at this time. C. STAFF RECOMMENDATION: Staff has recommended approval of the lot combination and simple subdivision. D. SUPPORTING DATA: A. Planning Commission report of April 7th, 2015 Planning Commission Agenda: 04/07/15 7. Consideration of an Administrative Lot Combination and Simple Subdivision for Lots 14 and 15, Block 34, Original Plat of Monticello. Applicant: Monticello Economic Development Authority (AS) Property: Legal: Lots 14 and 15, Block 34, Monticello (original plat) Address: 100 East Broadway Planning Case Number: 2015-011 A. REFERENCE & BACKGROUND Request(s): Combination of two platted lots and subdivision of resulting parcel creating a new lot line, resulting in two conforming central community district parcels, including one to be conveyed to MnDOT. Deadline for Decision: NA Land Use Designation: Central Community District Zoning Designation: CCD, Central Community District F -2, Convenience and Services Sub - District The purpose of the "CCD ", Central Community District, is to provide for a wide variety of land uses, transportation options, and public activities in the downtown Monticello area, and particularly to implement the goals, objectives, and specific directives of the Comprehensive Plan, and in particular, the Embracing Downtown Monticello report and its Design Guidelines. Overlays /Environmental Regulations Applicable: NA Current Site Use: Existing vacant commercial Surrounding Land Uses: North: Commercial retail and professional, occupied East: Commercial, vacant South: Commercial, retail West: TH 25 Project Description: The Monticello Economic Development Authority is requesting approval of an administrative lot combination and simple subdivision to allow for conveyance of property to the Minnesota Department of Transportation for right of Planning Commission Agenda: 04/07/15 way purposes. The right of way is associated with right turn lane construction for the TH 25 and CSAH 75 intersection improvements. ANALYSIS The proposed combination would first combine the lots legally described as Lots 14 and 15, Block 34. The simple subdivision would then divide that portion of the newly combined property which is to be conveyed as right of way for the turn lane. Section 11 -8 -2 of the Subdivision Ordinance allows for combination of parcels of record to create a parcel conforming parcel as follows: The purpose of the subdivision is to combine two (2) or more parcels of record to create a parcel conforming to the requirements of the applicable zoning district. Section 11 -1 -7 of the Subdivision Ordinance further provides for the simple subdivision of lots of record as follows: In the case of a request to divide a lot which is part of an existing lot of record where the division is to permit the adding of a parcel of land to an abutting lot or to create two lots and the newly created property line will not cause the other remaining portion of the lot to be in violation with this ordinance or the zoning ordinance, except that no such division of a lot or parcel shall be permitted when said division shall create a lot or parcel that is in violation of Chapter 8, Subdivision 11 -8 -2, of this ordinance. Lots 14 and 15 are currently approximately .12 acres each in size, or 5,490 square feet each. The resulting combined parcel will total .24 acres, or 10,980 square feet is size. Upon subdivision, Parcel A will total 5,216 square feet and will be conveyed to MnDOT. Parcel B will total 5,764 square feet of property, and will be retained by the EDA. The parcels are zoned Central Community District (CCD) and are located in the F -2, Conveniences and Services, Sub - District of the CCD. The CCD has no minimum lot width or area requirements which apply to the resulting parcels. The existing building on the property is scheduled for demolition by June 1, 2015, and therefore no setback violations will be present relating to combination or subdivision. Upon approval of the combination and simple subdivision by the City Council, formal documentation of both actions will be filed at Wright County. A certificate of survey documenting the conditions of the combined and subdivided lots will be prepared. Occasionally, the County Recorder determines that the new descriptions are not recordable. If that is the case, a plat would be required, and the EDA will apply for plat approval. Planning Commission Agenda: 04/07/15 B. ALTERNATIVE ACTIONS: Motion to adopt Resolution PC- 2015 -009 recommending approval of the Administrative Lot Combination and Simple Subdivision for Lots 14 and 15, Block 34, Original Plat of Monticello. 2. Motion to deny adoption of Resolution PC- 2015 -009 at this time. With this option, Planning Commission should provide findings of fact as reason for denial of the request. C. STAFF RECOMMENDATION: City staff recommends Alternative 91. The subdivision and lot combination results in a lot that is compliant with ordinance requirements and necessary to support the intersection improvements at TH 25 and CSAH 75. Pending the combination and subdivision approval, the EDA will consider conveyance of the subdivided parcel by quit claim deed in May, 2015. D. SUPPORTING DATA: A. Resolution PC- 2015 -009 B. Aerial Image C. Lot Combination Illustration D. Lot Subdivision Illustration E. Legal Descriptions of Area of Combined and Subdivided Parcels F. Subdivision Ordinance - Subdivision by Metes and Bounds G. Monticello Zoning Ordinance, Excerpt - CCD CITY OF MONTICELLO WRIGHT COUNTY, MINNNESOTA PLANNING COMMISSION RESOLUTION NO. PC- 2015 -009 Motion By: Seconded By: RECOMMENDING APPROVAL OF ADMINISTRATIVE LOT COMBINATION AND SIMPLE SUBDIVISION LOTS 14 & 15, ORIGINAL PLAT WHEREAS, the applicant is the owner of a single record parcel consisting of Lots 14 and 15, Block 34, Original Plat of Monticello; and WHEREAS, the applicant proposes to combine the subject properties into a single lot of record; and WHEREAS, the application proposed to subdivide the resulting subject property into two lots for the purpose of conveyance of property for public purpose to a public agency; and WHEREAS, the property is zoned CCD, and the proposed lots will meet the applicable CCD zoning requirements; and WHEREAS, the proposed administrative lot combination and subdivision qualifies for a simple subdivision process under the terms of the Monticello Subdivision Ordinance; and WHEREAS, the Planning Commission considered the matter at its regular meeting on April 7th, 2015 and the applicant and members of the public were provided the opportunity to present information to the Planning Commission; and WHEREAS, the Planning Commission has considered all of the comments and the staff report, which are incorporated by reference into the resolution; and WHEREAS, the Planning Commission of the City of Monticello makes the following Findings of Fact in relation to the recommendation of approval: 1. The proposed lot combination is consistent with the intent of the Monticello Comprehensive Plan. 2. The proposed lot combination creates a lot that meet the requirements of the Monticello Zoning Ordinance. 3. The proposed lot combination qualifies as a "administrative subdivision" under the terms of the Monticello Subdivision Ordinance for purposes of processing. CITY OF MONTICELLO WRIGHT COUNTY, MINNNESOTA PLANNING COMMISSION RESOLUTION NO. PC- 2015 -009 4. The proposed subdivision is consistent with the intent of the Monticello Comprehensive Plan. 5. The proposed subdivision creates lots that meet the requirements of the Monticello Zoning Ordinance. 6. The proposed subdivision qualifies as a "simple subdivision" under the terms of the Monticello Subdivision Ordinance for purposes of processing. 7. The proposed subdivision will not create undue burdens on public systems, including streets and utilities. NOW, THEREFORE, BE IT RESOLVED, by the Planning Commission of the City of Monticello, Minnesota, that the proposed subdivision is hereby recommended for approval, subject to the conditions found in Exhibit Z as follows. 1. In the event the County rejects the descriptions of the metes and bounds subdivision, the applicant will need to re -apply and utilize a formal plat process. ADOPTED this 7th day of April 2015, by the Planning Commission of the City of Monticello, Minnesota. MONTICELLO PLANNING COMMISSION R-A ATTEST: Brad Fyle, Chair Angela Schumann, Community Development Director 2 1 r r r�r Subject Property i April i.2oir, lwrl� ' J M r r� City Boundary � ��i11C14Cn0 YL 1 r- L inch = g¢ feet oo�.pEid� Ct4E9vueu 48, Umk I.ISQS.►ugC 4w�hs AregAd,lOH i4P, srh■op■, ana �,. Ci3 V ti■r Camm.ny wpn■,..■a� c■e.�a iree Nd! ! Ma:K« r r r r k� 1^ F, N % of _` I i *4 r .�.. � � 1 AV 15 / City Project No. 1494 -80 Date: March 10, 2015 CITY OF 701 Xenia Avenue South, Suite 300 - .� MonticeRo L O T C O M B I N A T I O N Te1:17631541 -480 WSB Minneapolis, 55416 0 - Fax:17631541 -1700 wsbengcom LOTS 14 AND 15, BLOCK 34 ORIGINAL PLAT OF MONTICELLO K; \01494 - 800 \Survey \Easement \Lot combinationAgn t / / 7 }# / / / /t I -1 *1 F V N 250 3.31 } .......N '6{o- a5 • / ti 4V O 0 / {. / +'3 o a / ,5ti X15 12 % 10 / /I All 5,216iSQ. FT i # / 5,704 SQ. FT. / 2 } S 89° {' EAST 1/4 1 , "� / T -121 R- / 70* / / City Project No. 1494 -80 Date: March 10, 2015 CITY OF 701 Xenia Avenue South, Suite 300 WSB - Minneapolis, 55416 M—onticeRo Tel: 17631541 -48080 0 Fax: 17fi31541 -1700 LOTS 14 AND 15, BLOCK 34 wsheng.com ORIGINAL PLAT OF MONTICELLO eligincering plan6ig enviionmental.constructl K:\01494- 800ASurvey \Easement \SE EXHIBIT.dgn Lot Combination Legal Description Lots 14 and 15, Block 34, Original Plat of Monticello, as is on file and of record in the Office of the County Recorder, Wright County, Minnesota. Subdivision Legal Descriptions Parcel A, Legal Description That part of Lots 14, and 15, Block 34, Original Plat of Monticello, as is on file and of record in the Office of the County Recorder, Wright County, Minnesota which lies northwesterly of the following described line: Commencing at the Southeast Corner of the Northeast Quarter of Section 11, Township 121, Range 25; thence South 89 degrees 00 minutes 44 seconds West, assumed bearing along the south line thereof, 2176.28 feet; thence North 00 degrees 59 minutes 16 seconds West, perpendicular to said south line, 800.96 feet to the southwesterly line of said Lot 15 and the point of beginning of said line to be hereinafter described; thence North 52 degrees 20 minutes 02 seconds East, 40.14 feet; thence North 44 degrees 54 minutes 41 seconds East, 55.24 feet; thence North 25 degrees 44 minutes 05 seconds East, 39.68 feet; thence North 66 degrees 57 minutes 49 seconds East, 45.14 feet to the southeasterly line of said Lot 14; thence North 25 degrees 40 minutes 43 seconds East, along said southeasterly line, 3.31 feet to the northeasterly corner of said Lot 14 and there terminating. Parcel B, Legal Description That part of Lots 14, and 15, Block 34, Original Plat of Monticello, as is on file and of record in the Office of the County Recorder, Wright County, Minnesota which lies southeasterly of the following described line: Commencing at the Southeast Corner of the Northeast Quarter of Section 11, Township 121, Range 25; thence South 89 degrees 00 minutes 44 seconds West, assumed bearing along the south line thereof, 2176.28 feet; thence North 00 degrees 59 minutes 16 seconds West, perpendicular to said south line, 800.96 feet to the southwesterly line of said Lot 15 and the point of beginning of said line to be hereinafter described; thence North 52 degrees 20 minutes 02 seconds East, 40.14 feet; thence North 44 degrees 54 minutes 41 seconds East, 55.24 feet; thence North 25 degrees 44 minutes 05 seconds East, 39.68 feet; thence North 66 degrees 57 minutes 49 seconds East, 45.14 feet to the southeasterly line of said Lot 14; thence North 25 degrees 40 minutes 43 seconds East, along said southeasterly line, 3.31 feet to the northeasterly corner of said Lot 14 and there terminating. CHAPTER 1 GENERAL PROVISIONS SECTION: 11 -1 -1: Short Title 11 -1 -2: Purpose 11 -1 -3: Scope 11 -1 -4: Approvals Necessary for Acceptance of Subdivision Plats 11 -1 -5: Conditions for Recording 11 -1 -6: Building Permits 11 -1 -7: Exceptions 11 -1 -8: Separability 11 -1 -9: Conflict AN ORDINANCE ESTABLISHING REGULATIONS FOR THE SUBDIVISION AND PLATTING OF LAND WITHIN THE CITY OF MONTICELLO, DEFINING CERTAIN TERMS USED THEREIN: PROVIDING FOR THE PREPARATION OF PLATS; PROVIDING FOR THE INSTALLATION OF STREETS AND OTHER IMPROVEMENTS; PROVIDING FOR THE DEDICATION OF CERTAIN LAND FOR PARKS AND PLAYGROUNDS; ESTABLISHING PROCEDURES FOR APPROVAL AND THE RECORDING OF PLATS; PROVIDING PENALTIES FOR VIOLATION OF THIS ORDINANCE; AND REPEALING ORDINANCES OR PARTS OF ORDINANCES INCONSISTENT HEREWITH. THE COUNCIL OF THE CITY OF MONTICELLO DOES ORDAIN: 11 -1 -1: SHORT TITLE: This ordinance shall be known as the "SUBDIVISION ORDINANCE OF THE CITY OF MONTICELLO," and will be referred to herein as "This Ordinance." 11 -1 -2: PURPOSE: In order to safeguard the best interests of the City of Monticello and to assist the subdivider in harmonizing his interests with those of the city at large, the following ordinance is adopted in order that adherence to same will bring results beneficial to both parties. It is the purpose of this ordinance to make certain regulations and requirements for the platting of land within the city of Monticello pursuant to the authority contained in Minnesota Statutes Annotated, which regulations the City Council deems necessary for the health, safety, and general welfare of this community. 11 -1 -3: SCOPE: The provisions of this ordinance relate to any division of a tract of land into two or more parcels by platting, replatting, conveyance, registered land survey, or other means. MONTICELLO SUBDIVISION ORDINANCE TITLE XII /Chapt 1 /Page 1 11 -1 -4: APPROVALS NECESSARY FOR ACCEPTANCE OF SUBDIVISION PLATS: Before any plat shall be recorded or be of any validity, it shall be referred to the City Planning Commission and approved by the City Council of Monticello as having fulfilled the requirements of this ordinance. 11 -1 -5: CONDITIONS FOR RECORDING: No plat of any subdivision shall be entitled to record in the Wright County Register of Deeds Office or have any validity until the plat thereof has been prepared, approved, and acknowledged in the manner prescribed by this ordinance. 11 -1 -6: BUILDING PERMITS: No building permits will be considered for issuance by the City of Monticello for the construction of any building, structure, or improvement to the land or to any lot in a subdivision as defined herein until all requirements of this ordinance have been fully complied with. 11 -1 -7: EXCEPTIONS: When requesting a subdivision, if either of the following two conditions exist, the subdivider is required to present accurately drawn site plan information for the proposed subdivision, have the subdivision reviewed by the Planning Commission, reviewed and approved by the City Council, and adhere to the park dedication requirements spelled out in the ordinance, Section 11 -6 -1 through 1I- 6-5, and all other subdivision requirements shall be waived. Upon approval, subdivider must provide City Staff with a certified survey describing the approved subdivision. ( #343, 2/14/00) (A) In the case of a request to divide a lot which is part of an existing lot of record where the division is to permit the adding of a parcel of land to an abutting lot or to create two lots and the newly created property line will not cause the other remaining portion of the lot to be in violation with this ordinance or the zoning ordinance, except that no such division of a lot or parcel shall be permitted when said division shall create a lot or parcel that is in violation of Chapter 8, Subdivision 11 -8 -2, of this ordinance. ( #148, 9/9/85) (B) Such division results in parcels having an area of five (5) acres or more with frontage on a public right -of -way measuring three hundred (300) feet or more and when such division does not necessitate the dedication of a public right -of- way; or if a lot which is part of a plat recorded in the office of the Register of Deeds of Wright County is to be divided and such division will not cause any structure on the lot to be in violation of the Zoning Ordinance or said new portions of lots to be in violation of City Ordinance. ( #33, 7/27/77) 11 -1 -8: SEPARABILITY: If any section, subsection, sentence, clause, or phrase of this ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this ordinance. MONTICELLO SUBDIVISION ORDINANCE TITLE XII/Chapt 1 /Page 2 11 -1 -9: CONFLICT: Whenever there is a difference between minimum standards or dimensions specified herein and those contained in other official regulations, resolutions, or ordinances of the City, the highest standards shall apply. MONTICELLO SUBDIVISION ORDINANCE TITLE XII /Chapt I /Page 3 CHAPTER 8 REGISTERED LAND SURVEYS AND CONVEYANCE BY METES AND BOUNDS SECTION: 11 -8 -1: Registered Land Surveys 11 -8 -2: Conveyance by Metes and Bounds 11 -8 -1: REGISTERED LAND SURVEYS: It is the intention of this ordinance that all registered land surveys in the city of Monticello should be presented to the Planning Commission in the form of a preliminary plat in accordance with the standards set forth in this ordinance for preliminary plats and that the Planning Commission shall first approve the arrangement, sizes, and relationship of proposed tracts in such registered land surveys and that tracts to be used as easements or roads should be so dedicated. Unless a recommendation and approval have been obtained from the Planning Commission and City Council respectively in accordance with the standards set forth in this ordinance, building permits will be withheld for buildings on tracts which have been so subdivided by registered land surveys, and the City may refuse to take over tracts as streets or roads or to improve, repair, or maintain any such tracts unless so approved. 11 -8 -2: CONVEYANCE BY METES AND BOUNDS: No conveyance in which the land conveyed is described by metes and bounds shall be made or recorded if the parcels described in the conveyance are five (5) acres or less in area and three hundred (300) feet in width unless such parcel was a separate parcel of record at the effective date of this ordinance. Building permits will be withheld for buildings or tracts which have been subdivided and conveyed by this method, and the City may refuse to take over tracts as streets or roads or to improve, repair, or maintain any such tracts. Not withstanding the previous prohibition, a person may request an administrative subdivision of property described by metes and bounds under the following conditions: a. The purpose of the subdivision is to combine two (2) or more parcels of record to create a parcel conforming to the requirements of the applicable zoning district. b. The purpose of the subdivision is to divide one (1) previously platted parcel into no more than two (2) buildable parcels, both of which will be in full conformance with all applicable zoning regulations, and for which no public right of way, easements, or other drainage concerns are evident to the Zoning Administrator. MONTICELLO SUBDIVISION ORDINANCE TITLE XI/Chapt 8 /Page 1 Said administrative subdivision shall be subject to approval of the Zoning Administrator, who may at his or her discretion, refer the subdivision to other City staff for review and recommendation. If the Zoning Administrator approves the proposed subdivision, he or she shall place the proposed subdivision on the agenda of the next City Council meeting which is no less than three (3) weeks from the date of a complete submission. In the event that the County Recorder shall refuse to record an administrative subdivision due to the legal description of the proposed parcels or for any other reason, the applicant shall be required to comply with all of the requirements of the Subdivision Ordinance for Preliminary Plats. ( #426, 7/11/05) MONTICELLO SUBDIVISION ORDINANCE TITLE XI/Chapt 8 /Page 2 Section 3.5 (G) CCD Central Community District The purpose of the "CCD ", Central Community District, is to provide for a wide variety of land uses, transportation options, and public activities in the downtown Monticello area, and particularly to implement the goals, objectives, and specific directives of the Comprehensive Plan, and in particular, the Embracing Downtown Monticello report and its Design Guidelines. All proposed development or redevelopment in the CCD shall be subject to the requirements of the Design Guidelines and other standards identified in the Embracing Downtown Monticello report. It is not the intent of this chapter to abrogate any general Zoning Ordinance requirements in the CCD, and all such requirements of the Monticello Zoning Ordinance apply fully within the CCD unless addressed separately by a more detailed CCD zoning regulation. Sub - Districts. The CCD is hereby divided into sub - districts, including three Flex Areas (F -1, F -2 and F -3), and eight Landmark Areas (L -1 through L -8). The City Council shall, in accordance with the process providing for zoning map amendments in the Monticello Zoning Ordinance, adopt a zoning map for the CCD area identifying the sub- district boundaries. Base Lot Area • No minimum Base Lot Width • No minimum CHAPTER 3: ZONING DISTRICTS Section 3.5 Business Base Zoning Districts Subsection (G) Central Community District ccu suila Typical CCD Lot Configuration City of Monticello Zoning Ordinance Page 115 EDA Agenda: 04/08/15 12. Director's Report (JO /AS) Business Subsidy Policies As part of the review of EDA operations documents (including the enabling resolution and bylaws), staff also had Kennedy and Graven review the EDA's business subsidy policies, including: • Business Subsidy Policy • TIF Guidelines • GMEF Guidelines • Small Cities Guidelines At this time, the EDA attorney stated that she recommends no changes or amendments to this set of documents. The policies and guidelines are attached here for the EDA's review and reference. CSAH 75 /TH 25 Improvements The construction plans for the intersection improvements are currently under MnDOT review. Construction is anticipated to start in July. A community open house is anticipated to be held May or June, with smaller construction progress meetings scheduled thereafter. City Industrial Park Staff is in progress of preparing a summary background on the acquisition and ownership of the Otter Creek Business Park (Monticello Business Park). The land is held as an asset by the EDA and appears to have been purchased primarily with EDA (HRA) funds. However, the land is held in the City of Monticello's in terms of Wright County records for deed. In talking with the EDA's attorney, this may likely relate to statutes governing land held for resale and the property tax requirements, which differ between cities and EDAs. Staff hopes to have the full summary prepared for the EDA as part of the May meeting. Xcel Energy Sub - Station Xcel Energy has submitted a series of applications related to the proposed development of an electrical substation, which will be reviewed in a public hearing by the Planning Commission on April 7th. The substation is proposed to be located at the southern edge of the City -owned industrial park. A link to the Planning Commission report is provided here. The proposed substation will provide power to much of the existing Oakwood Industrial Park through a series of upgraded line connections. This replaces the current electrical substation source, which is the Lake Pulaski Substation. In addition, the new substation is proposed to provide power for the balance of Xcel's territory in western Monticello. EDA Agenda: 04/08/15 As the EDA may recall, Xcel Energy originally sought a location for the substation within the EDA /City industrial park, but due to covenant requirements and restrictions, elected to seek a location outside the park. It should be noted that the plat proposed with the First Lake substation development provides the right of way needed for the southerly connection of Dalton Avenue /School Boulevard from the industrial park to other property guided for industrial land uses. An assessment agreement associated with this road and utility corridor extension will be considered as part of the platted process for the substation. New /Expanding or Relocating Businesses Please see attached City newsletter item on new and expanding Monticello businesses. Market Matching February and March's Market Matching reports are attached for review. John Uphoff will also be present to provide a verbal report during the meeting. 2 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. 116J.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. Tan 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 Obiectives /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. OA 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. VL 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 EDA - TIF Criteria Monticello CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY TAX INCREMENT FINANCING 1. PROJECT EVALUATION CRITERIA 1:01 Tax increment financing proposals must meet a public purpose in addition to increasing tax base; which can include but are not limited to, the creation of livable wage jobs, removal of blight, and environmental clean up. 1:02 The EDA will utilize Tax Increment financing (TIF) to support the community's long -term economic, redevelopment, and housing goals stipulated in the Comprehensive Plan and Zoning Ordinance. TIF proposals will be considered under the Comprehensive Plan and City Code in effect at the time the TIF proposal is received. 1:03 The EDA shall use the following guidelines when evaluating a TIF request. A. All TIF requests shall meet the "but for" test. The "but for' test means that the project would not develop solely on private investment in the reasonable future. The developer shall provide findings for the "but for" test. B. TIF will not be provided to projects that have the financial feasibility to proceed without the benefit of the subsidy. In effect, TIF will not be provided solely to broaden a developer's profit margins on a project. C. TIF requests should create the highest feasible number of jobs on site from date of occupancy where deemed appropriate. D. For manufacturing and warehousing TIF requests, at least 90% of the jobs created must pay at least 160% of the federal minimum wage requirements for individuals over the age of 20 during the term of the assistance. In the case of a recipient with existing jobs, the EDA may determine that the wage goal is satisfied if wages are increased to at least the minimum specified in this paragraph. Annual written reports are required until termination date. Failure to meet the job and wage level goals require partial or full repayment of the assistance with interest. E. In the case of a recipient with existing jobs, the EDA may determine that the wage goal is satisfied if wages are increased by a specified amount over the federal minimum wage. Annual written reports are required until termination date. Failure to 1 EDA - TIF Criteria meet the job and wage level goals require partial or full repayment of the assistance with interest. F. TIF requests should result in a substantial increase in property value and /or property taxes. F. TIF requests should facilitate redevelopment or elimination of "substandard" or "blighted" areas where deemed appropriate. G. TIF requests should facilitate the "clean -up" of environmentally unsound property where deemed appropriate. H. TIF requests should increase housing options for area residents where deemed appropriate. 2. TIF APPROVAL CRITERIA 2:01 All new projects considered by the EDA should meet the following minimum approval criteria. However, it should not be presumed that a project meeting these criteria will automatically be approved. Meeting these criteria creates no contractual right on the part of any potential developer or the EDA. 2:02 Prior to approval by the EDA, the developer shall provide any and all applicable and required market and financial documentation, appraisals, soil boring, information provided to private lenders for the project, and other information or data as requested. 2:03 A recipient of TIF must make a commitment to continue operations at the site where the subsidy is used for at least five years after the benefit date. 2:04 The EDA may determine job creation or retention is not a goal of the subsidy. In those cases, the recipient must instead meet at least one of the following minimum requirements (in addition to all other criteria in this document other than those relating to jobs and minimum wages): A. To remove blight and encourage redevelopment in the commercial and industrial areas of the City in order to encourage high levels of property maintenance and private reinvestment in those areas; or B. The proposed subsidy must result in improvements to public infrastructure or public facilities, including without limitations, sewers, storm sewers, streets, parks, recreational facilities, and other City facilities; or C. The proposed subsidy must remove physical impediments to development of land, including without limitations poor soils, bedrock conditions, steep slopes, or similar geotechnical problems. 3. PROCEDURES 2 EDA - TIF Criteria 3:01 Meet with appropriate Staff to discuss the scope of the project, define public assistance requested, identify public participation eligibility, and other information as may be necessary. 3:02 The request shall be reviewed by Staff on a preliminary basis as to the feasibility of the project. 3:03 The project concept shall be placed on the EDA agenda for concept review. The applicant will make a presentation of the project. Staff will present its findings. 3:04 If EDA concept review is positive, Staff will provide the City Council with an informational concept review. 3:05 The City will hold all required public hearings. 3:06 The applicant will execute and submit the Preliminary Development Agreement accompanied by a deposit per approved fee schedule. 3:07 Building and site plans will be required to be submitted to the Community Development Department. 3:08 If Planning and Zoning Commission action is required, it will be necessary for the applicant, at this time, to make application to the Commission. 3:09 Staff will authorize the following steps: A. Preparation for establishment of the Tax Increment Finance District and the Tax Increment Financing Plan if required. B. Preparation of the Purchase and Development Contract or Private Redevelopment Contract (Subsidy Agreement) based upon agreed terms. 3:10 When action is required for the Tax Increment Finance District and Plan, Purchase and Development Contract or Private Redevelopment Contract, or Zoning/Ordinance; the EDA, Planning Commission and City Council shall take appropriate action such as public hearings and consideration of approvals. 3:11 Building permit will be issued after the Tax Increment Finance District and Plan is approved by the City Council, the Purchase and Development Contract or Private Redevelopment Contract is executed by the developer and EDA, and the Building Permit Fees are paid. 3:12 Generally Tan Increment Financing projects take between six to eight weeks from time of authorization to begin drafting plan and contract. History: Public Hearing and Adoption the 8th of September 1999 Public Haring and Adoption of Amendments the 4th day of October 2000 Public Hearing and Adoption of Amendments the 5th of May 2004 Public Hearing and Adoption of Amendments the 3rd day of May 2006 Public Hearing and Adoption the 12th day of November 2008 3 EDA - TIF Criteria Public Hearing and Adoption the 23rd day of March 2009. -IN Monticello 1. PURPOSE GREATER MONTICELLO ENTERPRISE FUND GUIDELINES 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 bilit . 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 k. Grading 1. Environmental Study m. Curbing/Parking Lot 2 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 1.0 %. 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 f. 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 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 3 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. Assumabilitv 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. 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. fl 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 application shall be made by the EDA within 60 days of the submittal of a completed formal application. 5 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. 8. HISTORY 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 Adoption the 22nd day of April, 2013 D onticeflo 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 C. Other: are to be documented and no duplication of fees between the lending 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.8731) 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 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 Bligbt. 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 Riahts Act of 1964. as Amended (42 U.S.C. 2000d et CFR Part 1) No person may be 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 Act (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 146) 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 -41 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.arnet.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 may be subject to the provisions of the Uniform Relocation Act. www.ci.monticeIIo.mn.us NAPSHOT As a prime sub - regional center in the St. Cloud to Twin Cities corridor, Monticello continues to attract new growth and development. Downtown Monticello has seen a number of new businesses and expansions over the last six months. Here's a snapshot of activity occurring since fall of 2014: • SChlenner Wenner & Co moved to 114 3`d Street West, OTHER NOTABLE OPENINGS AND EXPANSIONS: remodeling this downtown building, now known as Oakwood Professional Center. • JaMama's Barbeque opened a new restaurant at 514 Pine Street (Highway 25). • Moon Dennis & Cam opened a new bakery in Monticello, located downtown in the Towne Center complex. • Swan River Montessori Charter School will open the doors on their new building on Maple Street in May • Sherwin Williams relocated their store to downtown Monticello, now located in the 6th Street Station building on Highway 25. BUILDING PERMIT MaN CO kV Ft.QOf - - - n� The Monticello Building Department approved over 70 new residential home permits in 2014, and a total of 7 new home permits have been submitted in the first two months of 2015! = Building Permits required include: • The construction, repair, improvement, moving or demolition of any structure. • Remodeling projects involving structural construction work. • In- ground sprinkler system installation. • All detached accessory structures exceeding 120 sq. ft. • Retaining walls over 4' in height (from bottom of footing to top of wall) Building Inspections: 763.295.3060 • Goodwill opened a new store along south Highway 25 and Cedar Street in January. • von Hanson's of Monticello is under construction along Hart Boulevard in east Monticello and is expected to open their new store in April 2015. • 321 Jump expanded their recreation center in the Monticello Theatre complex. • Mattress Firm is in process of City permit review and planning to open their new store at Union Crossings later in 2015. NEW MULTI- FAMILY HOUSING APPROVED IRET Properties received approval for construction of a new apartment complex. Spring construction is planned in 2015 for the first phase of the project which includes 136 units. The multi- family building will be located at the southwest corner of Meadow Oak Avenue and County Road 18 /Fenning Avenue, overlooking 1 -94. Plans for this new residential complex include an outdoor pool and sports area, underground and above ground parking, community room, trail connection and a number of other amenities. An additional 66 units are expected to be constructed in a future phase. e- ■ =I _ w ii■ '- a ® o us Fab - WSB JB && Assoc- engineering • planning • environmental • construction 3/2/2015 City of Monticello 505 Walnut Street Monticello, MN 55362 Re: February Monticello Market Matching Update Dear Mr. O'Neill: 701 Xenia Avenue South Suite 300 Minneapolis, MN 55416 Tel 763 - 541 -4800 Fax 763 - 541 -1700 Per our communication plan, the aim of this report is to provide you with an update on activities that occurred during the month of February as it relates to the Market Matching service contract. This report will be distributed to City Staff, as well as the City's EDA and City Council. Industrial /Commercial WSB continues working to match the development community with the City's industrial properties. WSB made contact with Anthony Phelps, Senior Director of Real Estate Development for the Opus Group. WSB provided Mr. Phelps with a copy of Monticello's community profile highlighting the City's Industrial Park. WSB has made follow up contact and has a meeting schedule with Opus on March 19th WSB contacted Kevin Kelleher, Department of Employment and Economic Development Business Specialist, for an update on MNDEED's marketing efforts related to Monticello's Certified Shovel -Ready Sites. WSB was informed that MNDEED is currently examining ways to boost visibility of the Certified Shovel -Ready Sites in Minnesota. The state has, and will continue to, prioritize the marketing of the shovel -ready sites in responding to requests for information. WSB will continue to directly market these sites. WSB contacted a firm to gauge their interest in developing a hotel project in the City's downtown. WSB has met with the firm's representative as well as local stakeholders. WSB is continuing to follow up with the prospect with meetings scheduled in March. Next steps may include a Hotel Market Study addendum to determine the feasibility of the project. WSB contacted Todd Meyhoff, Brunton Architects, to follow up on an inquiry he made with the City. Mr. Meyhoff s group is working with a national development firm to interest them in developing in the Monticello region. Mr. Meyhoff has been provided with substantial market data. Follow up is scheduled for March. WSB has been informed the developer prospect may be making a visit in late March. WSB is attempting to get a site meeting with the developer. Equal Opportunity Employer wsbeng.com Page 2 Residential WSB attended the SLUC meeting on 2/26 where we met Paul Tabone and Joe Jablonski of Lennar and discussed the residential housing marketing in Monticello. WSB followed up with Mr. Tabone with a substantial amount of market data. Mr. Tabone indicated the Monticello market would be discussed at their development meeting in March. Next steps include following up with Lennar and Mr. Tabone in March with an emphasis on a site familiarization visit. General WSB has been notified that the market data we are advancing in the market place is being distributed widely within the development community. Several third party inquiries are being received from prospects who have obtained market data from a primary source with whom WSB has worked. • Updated 2015 Fee Schedule regarding community development fees, • Bi- Weekly Meetings with City Staff, • EDA Property Signs, • EDA Meeting • Update of available properties Next month WSB will begin distributing a monthly newsletter related to economic development within the City of Monticello. Sincerely, 94 John Uphoff WSB & Associates, Inc.