HRA Agenda 06-03-1998
.,.
.
.
AGENDA
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, June 3,1998 -7:00 p.m.
City Hall
MEMBERS: Chair Steve Andrews, Vice Chair Bob Murray, Brad Barger, Damn Lahr, and Dan
Frie.
COUNCIL LIAISON:
Brian Stumpf
STAFF:
Rick Wolf steller, Jeff O'Neill, and Ollie Koropchak.
GUESTS:
Greg Hayes, Shingobee
Allen Black, Senior Housing Partners
1. CALL TO ORDER.
2. CONSIDERATION TO APPROVE TIlE JANUARY AND MAY 6, 1998 BRA
MINUTES.
3. CONSIDERATION ADDING AGENDA ITEMS.
4.
CONSIDERATION TO APPROVE GENERAL GUIDELINES AND LEVEL OF TIP
ASSISTANCE FOR PROJECT II WITIllN REDEVELOPMENT DISTRICT NO. 1-22.
5. CONSIDERATION TO HEAR PRELIMINARY CONCEPT FOR DEVELOPMENT OF
A HOUSING DISTRICT FOR ST. BENEDICT'S CENTER.
6. CONSIDERATION OF A REQUEST FOR ADDITIONAL TIP ASSISTANCE FOR
PROJECT I WITHIN TIF DISTRICT NO. 1-22.
7. CONSIDERATION TO AUTHORIZE EXECUTION OF THE CONTRACT FOR
PRIVATE REDEVELOPMENT BETWEEN THE BRA AND ALLIED COMPANIES.
8. CONSIDERATION OF INTEREST TO ACQUIRE THE PROPERTY LOCATED AT
613 SIXTH STREET WEST.
9. CONSIDERATION TO REVIEW TIlE FIRST DRAFT OF THE PROPOSED TIF
GUIDELINES.
10. CONSIDERATION TO APPROVE MONTHLY BRA BILLS.
~.
.
.
BRA AGENDA
JUNE 3, 1998
PAGE 2
11. CONSIDERATION OF COMMITTEE REPORTS:
a) Community Center - Bob Murray
b) Marketing - Darrin Labr
c) Golf Outing - Dan Frie
12. EXECUTIVE DIRECTOR'S REPORT.
13. OTIlER BUSINESS.
14. ADJOURNMENT.
HRAAGENDA
. ruNE 3,1998
4. Consideration to ~prove ieneral guide1ine~ and level ofTIf' assistance for Project II
within Redevelopment TIF District No 1-22.
A. Reference and Backifoun.d:
.
As you recall, Mr. Hayes withdrew this item from the HRA agenda of Apri115. 1998,
because the proposed tenants for second floor withdrew from their preliminary lease
agreement. The proposed lease pet square foot was $15 TNL and to cash flow the
project for a 13% rate ofretum, Shingobee requested $150,000 of up-front TIF
assistance. At this point and time, Shingobee has no tenants for the proposed two-story
office building; however, they have spotters out in the community. Mr. Hayes has
received support from the community to proceed with redevelopment of this property
because the proposed aesthetically-pleasing and quality structure will enhance the
downtown area. In order for Shingobee to proceed with the project and the need to
market for tenants, Mr. Hayes is requesting the HRA consider approving general
guidelines and a level ofTIF assistance. Shingobee's request remains at $150,000 of up-
front TIF assistance. It is my understanding, the proposed project has not changed: 4,000
sq ft per floor or 8,000 sq ft total. General guidelines to Mr. Hayes means <'If the final
building comes out to a 7,800 sq ft total instead of the 8,000 sq ft total, will the level of
TIF remain the sameT The economic difference between the 200 sq ft assuming the
payable 1999 classification rate and tax rate is approximately $557 annually. Mr. Hayes
will be in attendance.
Enclosed is a copy of the agenda item of April 15, TIF Local Policies, and cash flow
projections for your consideration. The information and alternative options remain as
outlined in the Apri115 agenda; however, the recommendation and real question
remains "how can we get the project done?" The HRA will need to weigh the
importance of the project against the 50/50% split policy. Would a larger project cash
flow better? This depends on acquisition and demolition expenditures. Is there something
unique about this project to cause deviation from the 50/50% split policy?
From Mark Ruff's perspective, he would recommend pay-as~you-go and be less
concerned with the level of assistance given an option. He further recommended the HRA
set the parameters for TIF and suggested Shingobee, Ehlers, and Koropchak meet to
discuss other potential funding options.
B. SuPportini Data:
April 15 agenda, TIF Policies and TIF cash flow.
.
.
.
.
HRAAGENDA
APRIL 15, 1998
4. Consideration to determine level ofTIF assistance and to authorize preparation of Project
II within TIF District No. 1-22.
A. Reference and background:
At the March 4, 1998 HRA meeting, the commissioners agreed and liked the idea and site
for the proposed redevelopment project for Lots 13, 14, & 15, Block 36, City of
Monticello, as presented by Greg Hayes of Shingobee, Inc.
Level of TIF Assistance
Upon Mr. Hayes securing a Letter of Intent to purchase the parcels and three bids for
demolition, tank removal, and cleanup; the developer requests $150,000 of up-front TIF
assistance to make the project work. The proposed 8,000 (2-story) sq ft professional
building has the second floor leased to two independent tenants. The first floor 4,000 sq ft
is available for rent.
You will recall, the first TIF cashflow projected a net tax increment of $43,437 NPy.
This was 50% of the increment at a 7.5% interest rate over 15 years. The same terms
offered the mall redevelopment. The County Assessor placed a $100 per sq ft print value
on the professional two-story building. Assuming the same HRA offer as the mall, there
is a gap of approximately $105,000 between the developer's request.
In talking with the County Assessor a second time, he agreed to increase the assessor's
value to $13 5, an increase of $3 5. Again using the same terms, this increased the net tax
increment from $43,437 NPV to $74,365 NPV reducing the developer and net tax
increment gap to $75,000. If the HRA agreed to the same terms (45%/55% split, 20
years, 7.5%) as in the Private Redevelopment Contract with BBF Properties, Inc., the
level ofTIF assistance to Shingobee, Inc. would be $85,700 NPV.
If the HRA desired to assist at a level of $100,000, the terms suggested-might be first
100% increment over 9 years or if the HRA desired to assist at a level of$150,000 (the
request), the terms suggested might be first 100% increment over 18 years. The eight
level of TIF assistance options are listed under alternative action.
On April 9, Mr. Hayes shared with me the Letter ofIntent to purchase the property
described as Lot 13, 14, & 15, Block 36, at a cost of$175,000 less $10,000 for a clean
site. The three lots total 16,335 sq ft. Mr. Hayes was able to reduce the asking purchase
price of $250,000 to $175,000. He expects to hllVe an executed purchase agreement by
Monday. Of the three bids received for demolition and disposal of the gas station,
removal and disposal of the three tanks, and site cleanup; the lowest bid was $38,500.
1
.
.
.
HRA AGENDA
APRIL 15, 1998
I did see the project proforma which will be available for the HRA file. The total project
cost is $1,250,000. The project costs included land acquisition; demolition and removal;
architect fees; construction costs at $78.75 per sq ft plus permits, elevator, landscaping
and 5% construction contingency; construction management fees; financial construction
interest and fees; legal fees, project contingency, and rent-up contingency. Equity into
the project is 20%, $1,000,000 mortgage, interest rate 9%, 15 years, annual payment
$121,000. Assuming full occupancy at $15 per sq ft TNL rent and requiring a 17% rate of
return, the gap is $21,000 annually or $300,000 over 15 years; therefore, the request for
the $150,000 up-front assistance.
Financing Method
Next, consideration of the developer's request for up-front assistance. From the
developers point of view, Shingobee assumes a risk because of up-front dollars to acquire
and demolish and develop a quality building which sets a standard for downtown
redevelopment combined with the probability to lease first-floor at $15.00 per sq ft given
Monticello's market today.
In the past few years, the HRA has preferred to provide TIF assistance through the pay-
as-you-go method. This reduces the risk to the HRA as the assistance becomes a tax
reimbursement rather than up-front dollars. Inconsistent tax classification rates combined
with frozen tax rates is the concern for the HRA. Normally the HRA has not required an
Assessment Agreement or Tax Increment Guarantee with the pay-as-you-go. From the
developers point of view, the up-front dollar reduces the amount financed by the lender.
If the HRA considers up-front financing, the developer should be willing to execute an
Assessment Agreement and Tax Increment Guarantee.
Depending the level and method of TIF assistance, the HRA may need to consider
bonding for the project or request a loan from the city. The projected level of assistance
is based on the NPV at 7.5%.
Authorization to modify TIF plan and prepare Private Redevelopment Contract
Assuming an agreeable level and method of TIF assistance is reached, the HRA should
consider authorizing Ehlers and Kennedy & Graven to prepare necessary documents.
Questions for consideration:
a) Does the project comply with the local TIF policies?
b) Does the project meet the "but for" test?
c) Is the Preliminary TIF Agreement executed by the developer and the $5,000
submitted?
2
.
.
.
HRA AGENDA
APRil... 15, 1998
d) City Council approved the 5% local match for Redevelopment TIF District No. 1-
22 at time the district was established.
B. Alternative Action:
Level of assistance
1. $74,355 NPV, same scenario offered Mall, 50% split, 15 years.
2. $85,706 NPV, same scenario approved for Mall, 45%/55% split, 20 years.
3. $100,000 NPV, 45%/55%, 22 years.
4. $100,000 NPV, first 100% increment over 9 years.
5. $150,000 NPV, first 100% increment over 18 years.
6. Other combination.
7. No assistance.
8. Table any action.
Financing Method
1.
2.
3.
Up-front assistance requiring an Assessment Agreement and TI Guarantee.
Pay-as-you-go assistance.
Table any action.
Authorization
1. Authorize Ehlers and Kennedy & Graven to prepare necessary documents.
2. Deny authorization to prepared documents.
3. Table any action.
C. Recommendation:
This example illustrates the high cost of redevelopment and high standard. The real
question is "how can we get the project doneT As a guideline for a consistent level of
assistance within the downtown redevelopment district, the City Administrator (HRA
Treasurer) and HRA Executive Director recommend alternative no. 2 ($85,700 NPV) as
pay-as-you-go or alternative no. 1 ($74,355 NPV) as up-front with an HRA loan from the
city for the level of assistance and finance method and alternative no. 1 for authorization.
D. Sqpporting Data:
Local TIF Policies and TIF Cashflow projections based on $135 per sq ft estimated
market value on proposed professional building.
3
.
.
.
HOUSING AND REDEVELOPMENT AUTHORITY
City of Monticello
TAX INCREMENT FINANCING POLICY
program Purpose: The Monticello Housing and Redevelopment
Authority will utilize Tax Increment Financing to support the
community's long-term economic and housing goals.
policy Considerations: The ERA will analyze and evaluate Tax
Increment Financing proposals based upon the following policy
considerations. Each proj ect shall be measured against these
considerations and the project's value shall be determined, based
upon meeting these considerations.
~. The project shall be consistent with the City's Comprehensive
Plan.
2. The project shall demonstrate long-term economic and/or
housing benefits to the community.
3. The project shall create and/or retain employment for
Monticello residents.
4.
The proj ect shall increase moderate priced housing options for
area residents.
s. The project shall facilitate the redevelopment or elimination
of "substandard" or "blighted" areas as determined by the HR.~.
6. The project shall facilitate the "clean-up" of environmentally
unsound property.
7 . The proj ect shall provide additional public funding for public
improvements including utilities and/or park development which
would not otherwise be available.
8. The project shall be deemed to promote additional desired
"spin-off" development.
9. The project shall demonstrate' "comrmmity ,involvement"
including demonstrated degrees of the various factors:'
a) Local residency of the company"s owners and employees,. or
b) Local residency. of the -,contractors involved in -the
project, or .
c) Membership in local business organizations, or
d) Other similar 'factors.
.
.
.
APR ~9 '98 1~'31AM EHLERS & ASSOCIATES
, . IU IU . _~ MIlA: a.ooa -.I. ....'airIQ .. 7.5% WillI ~'" IV ~1op8r
P.4/5
CITY O}O' MON'fICELLO. MINNESOTA
T.1.F. CASH FLOW ASS1JMPnONS
Inlardl R'lo
Tille E_raion R,IlI:
Inflalion Rate;
7.so0",i.
1.12
O.OOOO"A.
Pay 97 Frmen Ralt
BA-SE V AWJo; INFORMA- Tro~
MM._I CI_ T;u:
_ PI!:!..-~ _._"al.!:!L-u.J!!!L.~.&.-...._..
1550010-038130 19.100 :2.7%14.0% 51&
,SS.010-038HO 86.400 ~,7%l4.0";l. 2,333
'I'ot~ =:':==' --.fos.soo ~"----r.B49" -Eslirn~PaY98TaxC~\y
PROJECT V ALOE INFORMATION..
l'Wl- of 'I'ulnerMlellI Oislna: Aed~llftt
Tyllt of o.velol\m8llC: Oftet
Nllmber 01 Bllildil'lSl $q\We Foot; 8.000
Estimated MaruI Vallie of New Proj8d1 ~O,OOO Pay 00
Clus Ral.O/I fila' $150,000 01 M.,ql ""UO 2.7~
Class ReM Mark.' V.", ,. $' 50,000 4.00%
i:allmawdT.w~ci~ 19,650 Payao
~ma\.., Ta!lOS; nooa
Aeae.~of~ MlItl<oI V.lll"$.I. se1.sa
rllQ$/$.t. 52,75
"CoIlImen:iallP dUtlftcllllOfl "as a... likely 10 W redIlcetI f1.lnhar by 1 * Legillnn which mHl\$ 1.11 taX inCl9merll.
ENerew~1IIc:.
pa;e, AMOCO<!,~"
.
.
I.
( APR 109 '98 1121:31AM EHLERS & ASS.2.~,t..a-r.~a.OOCI"',8\likllng0t7.$%..roh50""laoa.eloP'"
CITY OF MONTICELLO, MINNESOTA
TAX INCREMENT CASH FLOW
- .---sas8----p;~;-ca~Seirn.iViiiUaJ~ Semi.~-5~'" l..QC;iIl
pel'llOO BEGINNING Tax To: Ta>< Gron TIl> at Nel Tn 01 Curnul. Ma\e/I ill
~~ ~IY c.,p~i\e.a~rem...!!!L-'q,.~_ ~1.~~el'\l . .~, 5.00%
0.0 08.01 '998 2.849 2,849 0 0 0 0 0
0.5 02.01 1999 2,849 2,849 0 0 0 0 0 0
1.0 08.01 1999 0 0 0 0 0
1,5 02..01 2000 2.849 19.650 1$.802 9,01109 (94') 8,468 4,234 3.llS4 470
2.0 08..01 2000 9.409 (941) 8.468 4.234 7,176 470
2.5 02.0' 2001 2,849 19.650 16.ao2 9,01109 (941) 8.468 4,234 '0.5n 470
3.0 08-01 2001 11.409 (941) 6.466 en4 13,1)43 00
3.5 02.0' 2002 2.849 19,650 16.ao2 9,009 (941) 8,"68 4.234 'U97 470
4.0 08.01 2002 9.409 (D-'1l 8.4e8 ".234 20.037 470
4.5 02.01 2003 2.849 19,6$0 16,&02 9"'09 (9.41) 8.468 4.234 22.987 "70
5.0 08001 2~ 9.409 (841) 8,4e8 4.234 25.791 470
5.5 02.01 2004 2.849 19,650 16.802 9.409 (94') 8,4&& 4,234 2$,513 470
6.0 Oa.01 2004 9.409 (941) 8.468 ".234 31,137 470
6.5 02-01 2005 2.849 19.650 16.802 9,409 (94') 8.466 4.234 33.666 470
1.0 08,01 2005 9,409 (941) 8.468 4.234 38.'03 470
7.5 02..01 2008 2.&49 19.6$0 16,802 9.409 (941) 8.4&& 4.234 38.452 co
8.0 01.01 20De 9.409 (1M') 8,4&1 4.234 40,717 410
8.5 02-01 2007 2,849 19.850 le.802 1l.4Oi (1M') 8,466 4,234 42.1l99 .70
9.0 08-01 2001 1l,4OQ (94') ',-," 4,234 45,003 470
9.5 02.01 200S 2.849 1S,650 18.802 9,409 (941) S,4e8 4.234 47,031 470
10.0 08-01 200S 9Alle ($.A1) 8,488 4.2304 43.ge5 470
10.5 02.01 2009 2,8.9 111,650 18.802 9,409 (941) 8.466 4,234 50.889 00
'1.0 08-01 200Q ',409 [94') 8.488 4,234 52,684 47U
11,$ 02.01 2010 2.8451 '11.850 18,8(l2 9.409 (141) 8.488 4,23.0\ ~.434 .70
12.0 0e.01 2010 9,409 li<4') S,468 4.234 56,12' 47U
12.5 02,01 201' 2.849 19,650 16.a02 9.409 (~1) &,&81 4,234 57.747 470
13.0 oa-ol 2011 9,409 (941) 8.488 4.234 59.314 470
'3.5 02-01 2012 2,849 111.650 16,10i !M09 ($41) S..ee .&,23" 60.824 470
'.&.0 06-01 2012 9.409 (941) 8.488 4,234 62,280 "71)
'41.5 02-0' 2013 2.S4i 111,~ 1UO~ 9,0409 (941) 8.488 4,234 83,683 470
M.O 06-01 2013 liI,oIOS (941) 8,4SS 4.2M as,OJ! 470
15.5 02-01 2014 2.&411 19,650 16.802 11.409 (941) 8.468 4.234 68.339 470
08.01 20'4 0..&09 ($.A1) 8.468 4,234 ~ 410
02.01 2015 2.84S 19,850 18,802 9.409 (941) 8,408 4,234 68,806 470
08.01 2015 9,409 (941) 8.468 ".234 89,974 470
02.01 2018 2.8.49 19.5$0 '1.802 9.409 (941) 8.468 4,234 71,091 470
06-01 2015 9.oIOS (941) 8.468 4,2301 72,183 .0\70
02.0' 20'7 2.8.49 19.6GO lS,802 9,409 (941) 1,468 4,234 73,228 470
08-01 2017 9,409 (941) 8,468 4,234 74236 470
02.01 2018 2.849 18,850 11.1.802 9,409 (~1) 8.486 4.234 75207 470
Qa-O' 2018 9.409 (941) 8.4118 4,234 76,'43 470
02-01 2010 2,849 '9.650 16,802 9,409 (941) 8,488 4.234 77.045 470
_'.!:9..-0a-Ol 2019_. _..__-_~---1!4'L.._... 8.4U_.~4. rr., 470
----I2!.0l1!--_.. 37S,35~._illA~_.~ ._!!~35~_
. PrBS8fl~ _~~~~nl~~ ~4_..-=C: _.
e.ler.s aNI .AB.""I>l.... 1IIc.
P,5/5
'fears -' --,
01 peRIOD ENDING I
InCl'CI'I'I8!'l1 YI'$. Mlh. Yr. .
0~O---o:5'62~" i
0.0 1.0 08.01 1999 I
0.0 1.5 02.01 2000
0.5 2.0 08-0' 2000
1.0 2.5 02.01 2001
1.5 3.0 0&-01 2001
2,0 3.5 02-01 2002
2.5 .&.0 08-0, 2002
3.0 4.5 02-01 200'3
3.5 5.0 08-01 2003
4.0 5.5 02-01 2004
U 6.0 0&-01 2004
5.0 6,5 02-01 2005
5.5 7.0 08-01 zOOS
6.0 7.5 02.()1 2006
a,s 8.0 06-01 2006
7.0 8.5 02.01 2007
7,$ 9.0 08-01 2007
8,0 9.5 02-01 2008
8.5 , 0.0 08-01 2008
9.0 10.5 02-01 2009
9.5 1 1.0 08-01 2009
10.0 11.$ 02.01 2010 10.5 12.0 oe.01 2010
".0 12,$ 02-01 201'
11.5 '3.0 08,01 2011
12.0 13.5 02-01 2012
12.5 14.0 08.01 2012
13.0 14,5 02..01 2013
13.5 '5.0 o.e-ol 2013
14.0 15.5 02-0' 2014
14.5 HI.Q 08-0, 2014
15,0 18.5 02-01 :/015
15.S '1.0 08-01 2015
16.0 17.5 02-01 2016
16.5 18.0 08-01 201S
11.0 16.5 02,01 2011
17.5 , 9.0 08-0' 2011
, 8,0 19.5 02-01 20'8
la.S 20.0 08,01 2018
19.0 20.5 02.01 2019
19.5 21.0 06-01 20' iii
~~'.5 02.01 2020
_.._~
P~i" ~ AMOC02.WI<4
HRA AGENDA
. JUNE 3, 1998
5. Consideration to hear preliminmy concept for developm~nt of a Housirli District for St.
Benedict's Center.
A. Reference and Backwound:
Allen Black, Senior Housing Partners, requests the BRA hear the preliminary concept for
development of a Housing District for St. Benedict's Center of S1. Cloud. Previously,
Chair Andrews and Koropchak met with Black; Linda Doerr, Vice PresidentlExecutive
Director of St. Bens Center; John Seckinger, Chief Financial Officer of St. Cloud Hospital,
and others to discuss the overall concept for development of an eight~acre parcel adjacent
to the St. Henry' s 20~acre site. The proposed S1. Bens development will include 60-units
of assisted living, a town center, and 60-units of independent living. Most recently,
Black; Rusty Fifield, Ehlers; Dan Greensweig, Kennedy & Graven; and myself met to
review the proposed eligible TIP costs for the development of the 60~unit independent
affordable senior housing facility. The proposed project is similar to the 49-unit
Mississippi Shores project. The EMV for Mississippi Shores payable 1998 is building,
$1,296,700 and land, $92,100. Taxes are $36,812.
.
Remember, a Housing District is created for the purpose of providing affordable housing
to the low to moderate income levels. A <<Qualified Housing District" must meet both the
income level and rent limit requirements. If the City and HRA requires a qualified housing
district, the 10% local contribution is exempt. Eligible TIP expenditures must be for the
housing project and apply toward reduction of rental rates for the low to moderate rate
units.
.
1
St. Henry's Catholic Church plans to contribute or sell three acres to S1. Bens for
development of the independent living facility. Enclosed are proposed project costs for
the independent living facility and a comparison of the TIP expenditures for Mississippi
Shores as prepared by Allen Black. This was reviewed by Fifield, Greensweig, and
myself The discussions included the city's willingness to issue housing bonds as was done
for Mississippi Shores. This is a decision of the City Administrator/Council.
Allen Black and perhaps others on the St. Ben's team will be present at the lIRA meeting.
St. Ben's is not looking for authorization to prepare a TIP Plan only to hear preliminary
concept. No action required.
.'
Public Redevelopment Costs
Independent Living
Land Costs
Land & Demolition Site Prepation
^-"LL.r,.,..........{u V-7\
~~-~
Site Improvements
Sanitary Sewer Lateral u.. '\ , ":? (} D,
'\.'7 ~tl<l
Watermain Lateral ' ,
Water Lateral
Subtotal
City Fees .,... ~<:\ \,
Trunk Fees ';} J' COO, \.""",~'; ,06 <.'
'-Il
Water/Sewer Hook-up Fees............ .....~ \.l, S bO
Park Dedication Fees
SlIbtotal
Public Improvements
Site Uti lites Improvements
BikefPedestrian Pathway Bridge
Fire Truck Path/Hydrants
SlIbtotal
Site Preparation
Other Preparations Footings
Parking/Pay ing/Lanscaping
Contingency
Subtotal
Debt Service Reserve fo Housing Bonds
Total Qualified Expenses
Estimated Real Estate Tax (60 Ind. Units)
TIF%
TIF Amount
Original (current)
Tax Capacity Rate( Estimated)
$ -
30,000 $ 47,290 $ 965
$ -
30,000 $ 47,290 $ 965
(\
1L~'rJL 4- "-
L.t. Nl e-, , -
12,000 \.lh~ \., ',~c L~ .,.;"
\? u:.- '-..!l."-'~ ~ -". $ -
10,000 $ -
10,000 $ -
32,000 $ - $ -
.
TIF Summary
:':.:::::;:g::'(::':::':::':'!f:~f:?!~~:.:!:~2.!!!::::::::::!:::'::::::::.:.r":'::'
..:. :.:.: : ~ ~.. '. . . . . . . . . . . .. ::;::;;;;;;~~;;;;;;;;;;;;;;;:;;;;;;:~~~r~:~~;~;~;;I~~;;:;:;:;:;:;[:l~:~~~~~~~~~~I~i~i;i;~~j;~;]~::;::
TlF
Estimated Cost Per Unit Estimate/Agree
i~mm:::lr::S:::::::IInnrmtm:I:r~::r:I:II::*=~~1:~7 $ 7,500 $
.sSS
IIJJ<lflllfllll\llilllll ;
$ 30,344 $ 506 $
15,440
18,950
3,40{)
37,790
!!li!llllll!!iillllll~,lili~11 $
$ 126,368 $ 2,106 $
-:1:lm:l::::!I:I:::::::'::':............~P~9QP
:1~i..ll:i.~I![~'~ilil.ji.i:ill.tiii:l!
$ 40,000
.;.:!~I.::..:..:..:.!!i:[![![!!.i.i.iilli! i
j.'.,$'I@@'j,..:::.?iJilMW $
$ 667 $
1i!liil!!!lli:illlj:!:i:ilu,."':::':;;i;::;i~~;~~:i;:i;i:i:I;:!ii;i::;i::i:ii:i:::::::l:~,~;:;: ;
!1.II~tl:l:i:I:I:iii::ii,I::::I:I:,I.:I:llljli.~~f~I'iIlli'lli~i:lllil:li:ilill'I::'::I:I:I~1111 ;
$ 180,000 $ 3,000 $
39,208
15,675 $
48,657 $
20,000 $
Jl3,540 $
95,000 $
325,830 $
1~;lj:::i:j@::j:l:::'::':,::i, :'i~~9';9g9::::::~:~:'::ri'::::mlj~.~i$~.:'. $
$
866,712 $
14,445 $
$
Per Unit Total
1,000 $
60,000
90%
54,000
T1F Assumptions
Discount Rate
Term Years
Term Years
Term Years
Term Years
Page 1
$
$
$
1,000
1.216940
Miss. Shores
Actu(ll
Cost
Actual
Per Ullit
50,172 $
1,024
s ~ r:;vw.... ~-.L"'u
", "T:>rL ~(....
~~..........~ $
t....0u..~ $
$ 41,478 $
846
$ -
166,000 $ 3,388
55,541 $ 1,133
- $ -
221,541 $ 4,521
$ -
141,725 $ 2,892
$ -
502,206 $ 10,249
NPV TlF
7,50%
12 $ 409,059
15 $ 474,691
18 $ 527,522
20 $
.'
see
~ .-/''--\ '
\ "-<:' , S (, C
"'c;-::o
I-~'i~) ,
' ,\\\I\S '3
, Sc '-.{
\ ':) ? r S 0-
VL \ 1 /__
-::; --------- ~
------- , VJ- S
\ <\ . \ .
~
'.'
~
7.
~
.... . ""'h~IA=....ftD".~""":;:::' ==-t:""::'~:'.
5 a=~I~I~!Ii;I!!!i I ;:~~!2::;:I
~I ,;ii;# #ii ;iiii ~. ~imm
Grading/Utility Plan
~-
.. r:
,~'. "
,
/.~~
",
"'r
,I
..
. ~, j ;
c> -
.
.'
.. . .J
'4
, ,
I, ,
v),:;,.
Q;'
!::
E::
Q:
.CJ
-.'"
\-"
~~
..C'J
,:'
.:.~
~-
\,'
."
,\.,
'"
"
\.,
,'~
1'1 ,&..,"
I~,
I ((;'
I '0
.of-
':
~
I !ll! I
'" -'-~ ,
I'~
2 r \i \1
/'
.
j.J
J;! ! I
u". r ." T f';
~ ~~~;; i~~ ~~ii~
i ;.:.~~; ~~; ~:.:.;;
.
. I
,,,,.,,:,~ i:...... ...~..
~~~i~JM::J:lirlrltJ
(,)
0,
.00<;
"
)' ..~
~.;:
t':
: ~ ;..
." ~,,,, 'rI." r
I ."..'J'" tor, ., ""u..-' ,I,
.,' 'I
I I
Exhibit C
~;l~
. ~
G .I;!
a:
j
:t
V
'"
'J-
a:
z
\oJ
J:
.~
'"
., '~~
)i J~
~ Ii! 0 z
" " :(:5
.. " . C.
If ~:.:.: (j
~ .!i ~ ~
If ~ ~ g
!l C) :J
i..
ili'!
,I i
I
.i. !
':'1: :
J"ll J
'II 't f
!,~li! !
!!~~h II
~. I :.
F...~ .!';;~:
;,-, 'l-!
.: ~ e ~ ... I :.
it1~ :.:.?i:.:
:-:. ~.;
. ~ ."
l}
~i ~
Ii ..
" ~
" .
I. ~
Ii ~
II $
I: i
'I !
- r~l~~~l~
..................
Hmiii
: loA
.Jun-01-98 15:54
P_02
.
St. Benedict's Ccntcr at Monticcllo
Prnj. No. 98-032
Project Description:
The St. Benediet~s Center at Monticello will provide elderly (senior citizen) housing and
related suppon facilities in three linked facilities. The project components include an
Independent I.iving Building, Assi~ted Living Building and Town Centre facility un
approximately 8 acres adjaeentto the new Church uf St. Henry. The 8 acre site will be
subdivided to approximately 3.5 acres utilization for the assisted living / town square
facility and 4.5 acres utilization for the independent living facility.
The Independent Living Facility will provide 60 units of housing for ablc.bodicd seniors
consisting of one bedroom apartments, one bedroom with den apartments, and two
bedroom apartments. Three stories {)fhousing above a basement level parking garage
will be constructed. Apartment units arc projccted to range in Si7.e from 701 sq. ft. one
bedroom apartments up to 1260 sq. ft. in two bedroom units. A below grade parking
garage will provide one enclosed parking stall for each unit. Visitor parking will be
provided by on-grade surface parking. The total area of the building will range between a
minimum of 84.000 sq. ft. to 88,000 sq. Ii.
.
The building structure will involve concrcte strip and column footings and concrete
masonry It>undation waHs to enclose the below grade parking garage. 'Ine floor structure
between the parking garage and first floor will be pre.cast concrete plank supported by
pre-ca"it concrete columns and beams and exterior masonry foundation walls. The upper
three slories will be wood frame construction with lire raled wall sheathing. The entire
bUl lding will be protected by an automatic sprinkler system. A central modular boiler
assembly and exteriur chiller will provide heating and cooling. Each unit will have a
v.a,v. fan coil unit for individual heating and air conditioning.
The building exterior will consist of approximately 25% brick veneer base and
approximately 75% exterior tinish system at the tront half oflhe building. The hack hall"
will change to approximately 25% colored rock face block and 75% exterior fini~h
system. Exteriur linish system is a generic term It)r an acrylic plaster finish over
fiberglass mesh and rigid insulation board. Pitched roofs will be finished with asphalt
shingles and pre-finished metal trim.
.
.Jun-Ol-9B 15:54
P_03
.
St. Benedict's Senior Housing
Independent Living
Monticello,MN
'Oe'scriptio'n 'ofArea
i
No.
Gro..
Sq.Ft.
Net
$q,Ft.
Subtotal : Proposed
Gros8 Rent
1 ;i:)"O 'RESIDE'NTIAL UNITS -FIRST FLOOR 20 18,766
1.01 One Bedroom A 4 701 664 2.804;
1.02 One Bedroom B 4 745 701 2.980;
1.03 One Bedroom C 2 866 821 1.732'
1.04 One Bedroom wi Den 0 .. " 3.788;
4 947 902
1,05 Two Bedroom wI 2 Bath E 2 : 1,211 1,165 2.422'
. - ". . ,. . " ~. . .., ... .. '. '
1.06 Two Bedroom w/2 Bath F 4 1,260 1,200 5.040:
2.00. RESIDENTIAL'UNiT~f~.EC6Ni5'FLOciR 20 18,766'
2.01 One Bedroom A 4 701 : 664 2,804:
.. . ' ,
2.02 One Bedroom B 4 745 701 2.980'
2.03 One Bedroom C 2 866 : 821 1.732.
2.04 One Bedroom wI Den 0 4 947 902 3.788;
2.05 'Two Bedroom w/2 Bath E 2 1,211 1.165 2,422
2.06 Two Bedroom w/2 8ath F 4 1,260 1,200 5.040;
! .'
3.00 RESIDENTIAL UNITS .THIRD FLOOR 20 18,76&1
3.01 One Bedroom A 4 701 664 2,804,
3.02' One Bedroom 8 .. ... . . . .. :
4 745 701 2.980
. ... . - ..., _. _,.. ,. .n,,,.. ,. ,.... ..... ............. . . .,. .
3.03 One Bedroom C 2 866 821 1,7.32 :
. 3.04 One Bedroom wI Den 0 4 ; 947 902 3.788;
3.05 . Two Bedroom w/Z 8ath E 2 1.211 1,165 2.422:
3.06 Two Bedroom w/2 Bath F 4 1,260 1,200 5.040!
".. .. .,. _"",4 . .__ .....y.._..._....... _. ___. : ~
4.00' COMMON .AREAS~FIRS't FLOOR 2,402
4.01 Office 1 104 104~
4,02' Workroom 1 96 9S:
4.03 Kitchen wI Dishwash 1 216 2161
4.04: Dining/Community Room 1 1,500 1,500;
.. . .H .. 120!
4.05. Laundry 1 120
,
4.06 Waiting 1 ! 170 170:
4.07' Toilets : .,
2 70 140~
.. . . . . ..
4.08 Mail 1 56 56:
, i
5.00' COMMON AREAS-SECOND FLOOR .. . . .. 1,020;
5.01 Laundry 1 120 120'
5.02 Toilets 1 i 70: 70
. ..., ,
5.03 Fitness Room , 1 350: 350
.... .,.... .. .. , " .. .' 480:
5.04 Guest Room 1 480
!
6.00. COMMON AREAS-THIRD 'F"t.oo,f .' .... ......, 810
6.01 Laundry 1 120i 120
6.02 Toilets 1 70: 70
:
6.03 Lounge 1 : 620 620:
I
.
98-032 PROGIN01.xl$
JSS ARCHITECTS Page 1 6/1/98
Jun-Ol-9B ~5:55
.
.
.
P.04
~i
~I
~!
.
.
I:JV\ t-<<:2 ~o'ti
I\-e)tl~a
.m:O~OOM
10-\0)<11-1)
Q1NIN~
~\'-GI4~
~ <\.0,.1\...0
2.iO~ \
1-a..5-1 "'
------- .
A l a,.e.~
iJ.N.IT TYPE A - I BEDROoM
A'PP~)<' 101 6~~ ~O. fh
ST. 13ENEDlC1"S SEN10R HOUS1NG
M ON1'lCELLO. MINNES01' A
.
0..1
C
::s
I
o
'""'
I
\D
ro
'""'
tn
t.
tn
tI'
i
.
C
t
..
u
c:
::s
I
o
....
I
\0
l))
.
.
....
U1
II
In
U1
L-,IYIN6 I<.OOlVt
D-~I~
12~fWO'M
1-(0)(11-&
pININ<2
t
III
~N\T TYPE B-1 BEDROOM
APPF!.OX. i~ 6~e:~ ~a. FT.
ST. BENEDICT'S SENIOR HOUSING
MONTICELLO, MINNESOTA
1:1
,
o
0\
---
.
.
".
L
c
:3
I
o
....
I
1O
l))
....
U1
..
\J1
U1
- J..tVIN6 ROOM
"IO-~
BEDROOM
11-I0It1l-'"
01 NINeS-
~
t
III :J tIl!L\II!6 n
UNIT TYP{:: C. - I BEDROOM
t\f'fflOx. e66 6R.055 sa. fT.
ST. BENEDICT'S SEN]OR HOUSING
MONTICELLO, MINNESOTA
1:1
.
o
'oJ
S.ss
1. -
01.-98
n-
.
.
~
u...
!;\\tl
Q~
~~
~
f.i\ IS
'5\~
A
1
-;
;
o
z
,......
tfl
?
o
';:C.d:
p:.t-
00
,..... '(j)
Zt:tJ
~:z.
~
(/)~
. f:--- ~
~s
~~
Zu
~......
cot.-
:z
.0
t;~
5.56
1. -
1.-98
It'l-O
.
~
~
()
~
.
o
~
en.
~
';t..<t,
~b
~tI1
';Z.~
~z:
U1Z
~
r:/l~
.~to
0:3
~ru
'ZU
~.-
CO~
z:-
'0
t;$
5.56
'). .
~_gs
-0
,
.
I-
\l...
~~6
.z: t)
- \
Ci r(
.
o
z
U;
~
:C4;
~b
Ocfl
l-"""w.
~z
(f).o;z:.
(f}~
~t:- _
S~
~~
~~
CO~
z:-
'0
t;~
otJ02J98
.
.
.
MC100.01
JUN 02 '98
11:21RM EHLERS & RSSOCIRTES
Cily 01 M01'Ilic;ollo: 60 Uril Senior HouSi/'lQ
1'.T.F. CASH FLOW ASStJMPTIONS
111f1allol1 Rale:
Pay.As.YOu.Go Inlere$l Rate:
Tax Extension Rate' Olsmcl 270-3:
BASE V ALUE INFORMATION
L.and
ValuEt
BuildIng
.Yalue
Total Original Market Value
o 0
o 0
9 0
_". ~,=--.-9.
Class Aate: Mulll-Family Market Aate
Multi-Family 4(d)
Original Tax ~city (when certified):
Original Tax Capacity (when U$O i6 changed):
PROJECT VALUE JNFORMA nON
Type 01 Tax Increment Oistricl:
," Type Of unii'l-
~Froj~
Rental 60
..Tot.1 60
Assumes no e(d} unit5
L.ind Markol TOlal M8Jk.i' Total Tax
Va(ylt Value _.CapacllY
o Uoo,ooo 45.000
o , .800.0qO"" .. 45.000
MV Per
U"il
30.000
SUMMARY
IOlaIA"nuaITaxes'
TOlal Annual Tax lneremenl Alter Admin.
Net TlU" Paid:
Total Annual Taxes Per Unit:
TOlal Annual Tax Increment Per Unit:
53,390
48.051..
5.339
890
eOl
Prepal'lld by Ehlel$lP\bllCOlp 1M.
0.0000%
8.000'%
1.1884S0 PaySlS
Pay 97 Tax
Capacity ..
o 0
o 0
o 0
-. .' 0 ..' o'
--:--~
Total
V~.
2.5000% Pay 99
1.??oo% Pay 99
o Pay 99
o Pay 98
Qualilled Hauling
Veat
S~!led
tlllll
YO.~
PaYllble
2001
P.2/8
Pas" 1
SENIOR1.Wl<4
JUN 02 '98 11:21RM EHLERS & RSSOCIRTES P.3/8
06/02/98 CIlY 0' loIOnlic:ello: SO UrHl Senior 1-40using Page 2
T AX INCREMENT CASH FLOW
I ,,,.,, " ".-,-----..-"........-- -..- Admin ....S~ml.Annu31 Cumulative Futur. Years-.;r--PAYMENT DATEI
Original ProjEll;1 Cap[ured Semi-Annu"
~OD~~.~I~.~~~G _ _~~~____~~~~~ilY Tax Gross Tax 81 Nel Tax NPV ValUe Tax PERIOD ENDING
Capacity Inc"e~eJ1t _ 10.00% Inc::remenl 8,00% Increment Yrs. Mth. Yr.
.0 02..01 1999 0 0 0 0 0 0 0 0 0.0 0.6 08-<)1 1999
0..5 08-01 1999 0 0 0 0 0 0 0 0 0.0 1.0 02.01 2000
1.0 02-01 2000 0 0 0 0 0 0 0 0 0.0 1.5 08-01 2000
1.5 08-01 2000 0 0 0 0 0 0 0 0 0.0 2..0 02-01 2001
2.0 02.01 2001 0 45,000 45.000 26.695 2,670 24.026 19,747 24.026 0..5 2.5 OS-ol 2001
2.5 00-01 2001 0 45,000 45,000 26,695 2.670 24.026 38,735 48.051 1.0 3..0 02-01 2002
3.0 02.01 2002 0 <15,000 45.000 26,695 2,670 24.026 56.993 72,On 1.5 3.5 08-01 2002
3,5 OS-Ol 2002 0 45.000 45,000 26,6iS 2,870 24,026 74,548 96,102 2.0 4..0 02-01 2003
4.0 02-01 2003 0 45.000 45,000 26,695 2,670 24,026 91,428 120.128 2.5 4..5 08-01 2003
4.S OS-01 2003 0 45,000 45,000 28.695 2.670 24,026 107.659 144.154 3.0 5.0 02,01 2004
5.002..01 2004 0 45.000 45,000 26.695 2,670 24,026 123,265 168.179 3.5 $..5 08.01 2004
5.5 08-0' 2004 0 45,000 45.000 26..695 2,610 24.026 138.272 192.205 4.0 6.0 02.01 2005
6,0 02-01 2005 0 45,000 45,000 26,695 2,670 24,026 152,701 216.231 4.S 6.5 08-01 2005
6,5 08-01 2005 0 45.000 45,000 26,695 2,670 24,026 166.575 240,256 5.0 7.0 02.01 2006
7.0 02-01 2006 0 45,000 45,000 2&.695 2,670 24,026 179,916 264,282 5.5 7.5 08.01 2006
7.5 OS.OI 2006 0 45.000 45.000 26.695 2,670 24.028 192,743 288,307 6.0 8.0 02..01 2007
8.0 02.01 2007 0 45,000 45,000 28,695 2.670 24.026 205,077 312_333 6.5 8.5 08-01 2007
8.S 08-01 2007 0 45,000 45.000 26,695 2,670 24.026 216.937 336.359 7.0 9,0 02-01 2006
9.0 02.01 200S 0 45,000 45.000 26.695 2.670 24.026 228,340 3C5O.3e4 7.5 9.5 08.0' 2OOS1
9,5 08.01 200S 0 45,000 45.000 26,695 2,670 24.026 239,305 384,410 8.0 10.0 02-01 2009
10.0 02.01 2009 0 45.000 45,000 26,695 2.670 24,026 249,S49 408.435 8.5 10.5 08-01 2009
10.5 08-01 2009 0 45.000 45,000 26,695 2.670 24.026 259,988 432,461 9.0 11.0 02-01 2010
11,0 02.01 2010 0 45.000 45.000 26,695 2,610 24,026 269,734 456,437 9.5 11.5 08.0 I 2010
1 L5 08-0' 2010 0 45.000 45,000 26.685 2,670 24.026 279,107 460.512 '0.0 12.0 02-01 2011
12.0 02.01 2011 0 45,000 45.000 26.695 2.670 24,026 288,120 504,538 10..5 12.5 OS.OI 2011
, 2.5 08-01 2011 0 45,000 45,000 26.695 2,610 24.026 296,785 528.583 11.0 13.002,01 2012
13.0 02.01 2012 0 45,000 45,000 26,695 2,670 24,026 305,11S 552.589 11..5 13.5 08.01 2012
13,5 08-01 2012 0 45.000 45.000 26.695 2,670 24.026 313,130 57M15 12.0 14.0 02-01 2013
14.0 02-01 2013 0 45,000 45,000 26.695 2.670 24,026 320,834 600.640 12.5 14.5 08-01 2013
14.5 08.01 2013 0 45,000 45.000 26.695 2,670 24,026 328.241 624,666 13.0 15.0 02-01 2014
15.0 02-01 2014 0 45,000 45,000 26.695 2.670 24.026 335,364 1348,692 '3.5 15..5 08-01 2014
. 08-01 2014 0 45,000 45,000 28.695 2,670 24,026 342,213 612.717 14.0 16.0 02-01 2015
02..01 2015 0 45,000 45,000 26,695 2,870 24,026 34&,798 698.743 14.5 16..5 08-01 2015
OS.01 2015 0 45,000 45.000 26,695 2,670 24.026 355,130 720,768 15.0 17.0 02-01 2016
17.0 02-01 2016 0 45,000 45,000 26,695 2.670 24,026 36'.218 744.794 '5.5 17.5 08-<)1 2016
17.508-01 2016 0 45,000 4$,000 28.695 2.670 24,026 367.073 768,820 16.0 18..0 02-01 2017
18.0 02-01 2017 0 45,000 45.000 26,695 2,670 24.026 372,702 792,845 16.5 , 8.5 08-01 2017
18..5 08-01 2017 0 45,000 45,000 26.695 2.670 24.026 378.1 14 816.87' 17.0 19.0 02..0' 2018
19,0 02-01 20'8 0 45.000 4$,000 26,695 2.670 24.028 383,319 840.89Cl 17.5 19.5 OB.01 2018
, 9.5 08.01 201S 0 45.000 45,000 26,695 2.670 24.026 3S8.323 864.922 18..0 20.0 OZ-OI 2019
20.0 02.01 2019 0 45,000 45.000 26.695 2,670 24,026 393,135 888,948 18.5 20.5 08-01 2019
20,5 00-01 201Q 0 45.000 45.000 26.695 2,670 24.026 397,762 912.973 19.0 21.0 02-01 2020
21.0 OZ-01 2020 0 45,000 45.000 26.695 2,670 24,026 40Z,210 936.999 19.5 21.5 08-01 2020
21.S 00-01 2020 0 45.000 4$,000 26,695 2,670 24,026 406,488 961.025 20.0 22.0 02.01 2021
22.0 02-01 2021 0 45.000 45,000 26.655 2,670 24,026 410.60' 985.050 20.5 22.5 08-01 2021
22,5 00.0' 2021 0 45.000 05,000 26,615 2.870 24.026 414,556 1,009,076 21,0 23.0 02..01 2022
23.0 ~.01 2022 0 45,000 45,000 26,8;5 2.810 24,026 416.359 1.003.101 2'.5 23.5 Oe.Ol 2022
23.5 08-01 2022 0 45,000 45.000 26,695 2,870 24,02G 422.016 , ,087,127 22.0 24.0 02-01 2023
24.0 02-01 2023 0 45.000 45,000 26,8i5 2.870 24,C26 425.531 1.081.153 22.5 24.5 Oe.01 2023
24.5 0S-01 2023 0 45,000 45,000 26,695 2.670 24,026 ' 42S.91Z 1.105,178 23.0 25.0 02.01 2024
25,0 02-01 2024- 0 45,000 45.000 26,695 2,670 24.026 432,163 1,129,204 23,S 25.5 08.01 2024
25.5 OS-01 2024 0 45,000 45,000 26,695 2.670 24,026 ~35,2S9 1.153.229 24.0 26.0 02.01 2025
26.0 02.01 2025 0 45.000 45,000 26.695 2.670 24,026 438,294 1,1n,255 24..5 26,5 00-01 2025
26.5 00-01 2025 0 45.000 45.000 .. _?6,695 2.870 24,026 4!.1,184 1.201.281 , . 25,,,<? 27.0 02.01 2022
T olals 1.334,758 ..1.33,,476, __..i.291 ,2B1 . .. .-....
-..... ........ ,..- Present Valu~~ .. ---- _.1~204 49.020 44'.1S4 ~.. ._ ,__._...._._,_ ,.. "..1
.
.._._..~C100.01
p"parcd by !hleNP"bli~1P Inc.
SENlOR1.wKI
JU'N"'03 '98 03: 08PM EHLERS &: ASSOCIfiTr~?~"oli"lIc: 6II\JnrtS""..'......oi'"
T.LF. f"Sf{ l''l,QW ,~StJt'lPTlO'NS
IUnllllon flaM'
Pay.As,YOU-l:itllnlerA;1 R:.te:
Tlli( e:...WIlelOn Hat. . DiiVic:t ::!7(1-3;
RA S~ V AJ,.UE INFO~".L\ 'fl(l:'ll
LanCl 8lJilding
".iJlA1_, _Vai_
l) 0
o 0
...Q..__J___
_0 _0""'-=':" """,,=h...-.
.
Tlltel Oll\ll~l Metical V;:,llIt
Clll.33 n~. l1ulll'l=a/nily Mil. kill RII'",
Multi-F.:lmily 4(Cll
Original r.." OalJUCl1Y (WMft Ctltifiad):
Urigin:11 Tax CiljIlIl:Ity (wnen un Ie eh4ngl1dl;
_ PROJ~CJ' V4.UJE INF01t~tA1l()N
TypelJ! Tax Inerl\lMnt OiS1riot;
, O.OOOO,~
s.ooo%
1.186460 ~.V sa
TIII.1 flay llTT;:,~
V.B_...!,;,~S!)L
o 0
o 0
..2.. ___.Q.
__9. __,,,,"--=,0_
2.5000% rev 99
1,OOO:>~ PQ}'~9
o POly S~
o ":ly!l8
O~ifiod !-lOlJaill\l
~ Type or- 'Vnij;' - MVPer -W17.Jtoiiiiiii..Ti'&ii1M~"1 T~ITai -' i(~:lr- vea'-I
. .bc~ _ _._ .J:!nil ~r~_ .v~uo _C~~_ _ ~e!!... _PClYabbL
~~~I_ _lS~ _ ~_ _ :.~~~ _ 46,OP~ _ :gg_ _ 2001 I
c... ~9L _ J.O __ __ J_I,~.Q2Q. _ .~.OOO _ _' _ _ _ i
Al\.~l.,m~ M A<d) ",N'~
SUMMAI'lY
TOlal AM\lElI'Tuoc'
Tlllal AnnUIII Tax Incromcnl Aftel M~n
N.I ipe& "lilll'
Tot.' Annual' Ilk" Pel' Unit:
T<I\.I ^Ivlual Tax InMlmllnl Pet Unit:
M,3~\,I
<I8,Qtj
G,339
e90
001
.
MG1W-Ol
P,op_d'rrf I5li.,IlIPijOlreorp Inr.
.
r.c..J.....J
""901
S~~~1"'\C111..""..
.
..
r.:;J/:;J
,,,.,....u 03.'1ZI8PM EHLERS &: ASSOCIA1E~OIIT,<AlI~' GOIJ"i(te.....II"...."'Il
lUN 03 '98
f'eyal.
T ^ X :iNCREMENT CA.~~ FLOW
- ,- -.-' '-orillin7 -'Ploj~CI-" CalJMeC :Sf\mi:~~ar" Admin.Sa~A~i\u~160.00'" .- --.._."""'Vi.T.~~ oi f'pAE''1nMlo'ED~No:,~'~:-1
;PE.Hltlfl e.SGINNlNCi TlIK Tax TOSA I>r(l$., T:.. al Ner) -;r NoI Ta>: .~.. ... ,,,.
,Yrs. MI,h. Yr. CillBl~ _ !,;i;e!.'=i~_ ,_c"p;,,;;i\~ !~m~l_. _10.00%_...,IIl!i!!lI!!PI'II -!..n.~~, _ ._.~~~I"._~.l'3. .MID:.....J:I:._
' M UNll- Tgoo 0 0 0 (I 0 l,I 0 0:0 0.500.01 1999
0.5 UlHll 1l>>~ 0 0 0 n 0 !'I 0 0,0 1.0 02-0' 2000
1.00Z.Ul 2000 0 0 0 n 0 0 0 no 1.5 08-01 2000
I,' O&-Ul 2000 0 0 0 0 0 0 0 on 2.0020' 2001
Z.O OZ-o'I:>OOl 0 <I:'i.(U.l ~6,OOO 2.15.69':l ~.'70 201,02e 1 :l.O' 3 o.~ 2.; 08-01 200 I
2,:; Oll-ol ;>om 0 45.01'1<1 045.000 26.695 2,870 :24,026 1:1.013 1.0 :'l.0 Oll-O' ~002
! :l.0 02-0 1;/00:> 0 ~.OOO 45,000 26,(190 ',F.rJ0 :M,020 1;;<.ll1lJ I ,:J ~!i O&O! :!~
3.15 00'01 l!uU;I 0 -1(;,000 lO5.000 20,e9' ;>./110 24.0.."0 12.fJ1:~ 2.0 4.rl Cl:l.01 .2003
~.O Oe'Ol ZOU;o 0 40.000 ~".OOO :0:0.0 !IS l!.tl70 24,02S 12.oH Z.6 4..~ QIM' 2003
1.6 ~l 200:! 0 4~.OOO 4"'.000 20,095 <1,070 24,lX!6 t2.01:~ 3.0 o,ll [17-01 :ZoO'
5,002-01 2004 0 4:;,000 d..'1.I}()O 2(,09' 2.ti/0 :/~,O~6 12,013 ~., 5.!! 01\.01 200~
6.5 Oij.Ol 2004 :J 45,000 4.'i./K)(J ::/6.&9::: Ui/O 2',02S 12.013 4.0 6.0 U:1-01 ~005!
' 8.00301 200~ I) 4S,000 ~e,O<'Kl 26,606 2.610 24.026 1~.013 4,~ e.' OCWl 2005
t;.s 011-01 2~ 0 ~6,OOO "'.00(1 2UOS 2.570 ~4,026 1~,1)'3 5.0 7.0 a2.Ul '006
10 02..()1 eooe 0 ~5,OOO 45,0)0 26,896 2,Oto 7".026 I~,013 5.S 7,S 00-01 ;>0061
' 7" 08-01 2000 U ol.5,000 45,OO() 2S,6~ 2,670 :t4.M6 12,01:) 6.0 0.0 02..0 I :11.1(17
11.1/1)2.01 ~o07 U 45.000 ~.oOO ~E1.SQS e.010 ;,(_,1176 12,0':) 6.5 0.:; oe-ol i!WI
55 <"><-01 2007 0 45.000 45.000 ;IfI.E;9S :!,070 l4.Ul!il 12,013 7.0 0.0 02-01 <l~;
e.O 0;;<,(11 2006 Q 45.000 015,000 ~."~S ~,e:70 24.Ui!e; 12,0'2 7,5 O.S 00-01 ZWllj
D.5 OS-O, 2008 0 4~.noo ~1i.OOO 26,"..... 2,670 2:4.02~ 12.013 8.0 10.0 02-01 2009
10.002:001 2009 0 4~.(Jnn 45,000 ZtI.6115 2.670 2<1,026 '~,013 K,,, 'O.S 0S-0, zoos'
10.:; OIHII ~OOg 0 110.000 4$.000 21),095 2,670 24,02t1 l?m3 !HI 11.002,01 2010
11.0 02-{)1 ,010 0 <15.000 ~,OOO !e.S!le 2.~0 e4,a26 1;>.013 *." 1 U. OB 01 e01Q;
I 11.5 00.0' ;;-1I1Cl a <I6,OOU 45,000 20.69' 2.~O 24.02e 1<!,rl1:'~ 10.11 12.002,01 eOl'l
1.:1.00,E-Ol 2011 0 4',000 4,.000 20,095 ,!.~70 N,02D l~.Ul:\ 10.! ,,!> 08-01 ~011
If/.S 08-01 2.0 I 'I 0 ~5,OOQ 41i.(lOO ~e,G9':; ....1'lf0 l!4,0~(; la.Q1J 11.0 I~' (I 02.01 2OH'I
13.00:2,01 2012 0 .\(i,Ooo 45.0110 26,G9:l i.Am .2\OZe 12.0'13 11.5 1~.5 tll:l-01 :201~1
l'j.S 0801 2012 0 4~,00Q 'Iel.tlO(l 26,605 ~.1l7il 2~.026 12,013 '2,0 14.0 n,..l.l1 :/013\
, G. 0 02-01 2013 0 45,000 4::'.UllO lI8.S0! 2,e1t1 2~,026 12,01.3 12.5 '4.~ C1f1.111 2013
U ~ 0&-01 2013 II 45,000 45.000 26.896 Z,(I;O 24.0:26 12.013 13.0 1:;.0 '02..01 r<014 ,
,~ n 02.01 2014 II ~&.OOO ,,'.000 28,SgS 2,070 ,4.02& 1>:,013 13.& lS.:l 08-01 ;/(114
1~.~ ~1 :1014 11 ~s,oOO "5,000 '6,6ll& 2,07'0 ;;-"'f126 1~,0':l H.o 18.0 02-01 201!'!
In.U l.I?olll jOlS 0 45,000 4':;.000 <lfi.Il~S :!,B10 Z4.\1i'1i 12,010 14.6 16.5 00.01 2015
115,5 UII-ClI :2016 0 4':i>,OOO "5,000 llS.ti9!'i 2,'70 llf.O:Ml 12.013 1.$.0 17.0 O~-Ql 2016
17.0 02,ut 2016 0 ~,OOO 45.000 ~.1S!l5 2.'70 24,026 12,01:1 15.5 '7.6 08-01 Z016
t1.5 OB-Ol ~18 0 4.,";,1 "Xl '16,000 26,0\1::. 2,670 2".0215 "2.013 1111) 18.0 Oil 01 .2011
10.0 02-01 'ot7 0 45,<'KIt) ~6,ooo 26.6~ 2,.10 t-f.02ti n013 1~.1i 18.5 Oil 01 2017
10.:' 06-01 ;>017 0 <IO.Q(ll "S.OOO Ze,6SS U70 <l4,0~ 1;.0.01;) 1/.0 19,00:1-01 2010
HI.a 02-01 liUllt 0 45,00\1 46,000 Z6,Ot~ '.1570 Z4.0iO 1;;<.111::1 17.1;) 19'5 08-01 ::l010'
10.5 OO'O! ~U1H I) 45,000 45.000 fO,eS' ?li70 ::14.,020 12.\W\ 1&.0 <Inn 02.j)1 :lOl!!
20.00:;:.01 201\1 0 4S,OOO II~,OOO ;lC,O~5 '/..o"{o 21.026 1201;~ 18.!S ~o.!> M-()1 20101
:;O.S Q&..01 201:;' C ~,ooo 11",1.100 211:.09.:l 2.lS/ll ll4,~6 12,013 '9.0 21.1,) 0'-1)1 2000
21.0 all 01 20Z0 I) 45,000 45.1"10 2s:eg:; 2.01ll 24,026 12.013 19.5 21.5 lltl-01 2020
'l',(; Oil 01 20Z0 I) 40.000 45.01"' 26.605 2,670 \l".Oll6 H:,OI:) ~O.O al.O 02!'Ul ~I)~,
n e, ('\2.0' 20Zt n ~6,OOO "-'.000 ~6,8!l6 ~,e70 '4,028 12,013 ::0.(; 22.~oa-(Jl ;m~11
n" ;)8.01 2021 U .45,000 >4G.OOO 26,69S 2..670 A!4.0~ 1:1.013 21,0 23.002-01 :iOnj
,2., 1l1l<!.Ol::ace u 46,000 4:;,000 :lS,agS ~,070 ;<:4.CI::'6 12,013 2'.; e:l,:; 06-01 ;<0;>'
~3.5 lIH-l.ll:20:!:1 0 45.000 ":;,000 ,~.~1l5 2,070 24.\llI1I 12.013 22.0 2",0 02'01 2U'/.::I
,24.D 0")0/" 20~3 0 -!'i.OOO 45,000 ~~."1,lS 2,670 24,O;ll; 1::1,013 2:2.S 24.5 00-01 2.02~
2-1.5 Oel-(Il 2033 0 4!'i,OI.'IO 45,000 2/i.1'iW:> 2,670 Z4.0211 12,013 23.0 26.0 02-01 2024l
~~.Q 02-0 I 3Qa1 0 4;,,0l:l0 ~6,000 26.6!l" :::1,670 2'1,Oze 12.01$ <!J.; 26.6 00-01 202..,.
..:,.:; (la-Ol ::1024 0 4!l.00f\ 46,000 2tl.69:i 2.670 24,026 12.013 ,4.0 $.002-01 202!li
~zc.o 02-01 l!O25 0 ~.oon ~S,OOO 20.085 2,870 24,020 '7,m, ;;<41:1 ;!f,S oe 01 202'
:~6.5 C~l. _ ...i::11~L. _ ..9. ~.J,MI _~~, ~Q..e9L...._ W~_" ,_~4.026_ ,..J?"m~ _ . . _ J5...!L 2l:Q ~1_2026
.. -_ _ _ _ _ TutlllL .._ _ _ .... 1,:lO~..l50_ E~,476 _',~2el _DWJI4J!... _,. , _ _, __ ._ _,_,
_ __ _PleuI.!U'aIlJS~_ _ .. 4S0,~_4 _ ~,.II2O_~.1..J.!l4 ...w~_"__' -~=-- ..~.-l
MOIOO'u I
I"r~.Y><I by IiNo.....I"~"I~ In"
a!:tilQFn wu
.
.
PRELIMINARY EMV PER COUNTY ASSESSOR
PROPOSED ST. BENEDICT'S CENTER
Independent Senior Housing
June 2, 1998
Proposed 60~unit
Miss Shores 49-unit
$30,000 per unit
EMV$1,800,000.00
EMV$1,388,800.00
Break-down -
$200,000 improved land 3-acres
$1,600,000 building
$92,100 improved land
$1,296,700 building
155-106-002020
Classification rate used 2% building
2.9% land
$1,600,000 $1,296,700
x .02% 02%
. $ 36,000 $ 25,934
$ 200,000 $ 92,100
x 029% 029%
$ 5,800 $ 2,670
$41,800 $28,604
1.18645 1.18645
$49,593 't~ $33,937 \~
Existing land value not in this estimate,
County Assessor will be more specific knowing rental rates.
.
'3 ? S. %'0 0 N P \J
t\.'}t:l eft) \<; ~
, f"I l \../'lo..l!l ~ t)")
'A\I~ ,<,\
,~ \'d-.
~~ ~o/l) cr. ~ ~
I. R Q... 0\- I. q gf,q
~
';l";l.o~o
,~'.~
HRA AGENDA
. JUNE 3,1998
6. Consideration of a request for additional TIP assistance for Proiect I within TIF District
No. 1-22.
A. Reference and Background:
Barry Fluth, developer and owner of the building which will be leased to Cub Foods,
initialed the Private Redevelopment Contract extending the commencement construction
date to June I, 1998. At that time, he requested reimbursement ofthe $3,000 in escrow
relating to the K-Mart condemnation resolution, requested to be on the HRA agenda in
June for consideration of additional TIP assistance, and inquired as to the process to
authorize the resolution awarding the $500,000 Note.
The two Kennedy & Graven invoices total $1,327.35 and Brad Larson, Fluth's attorney,
submitted a letter stating the parties came to an accommodation relating to the K-Mart
condemnation issue. A reimbursement check in the amount of$I,672.65 was issued on
May 26.
At this time, I have not heard from Mr. Fluth, therefore, no information is provided
relating to the amount of additional TIF assistance or to proceed with authorization to
award the note.
.
Enclosed are the cashflow projections. Per the Contract, the BRA will issue a note in an
amount not to exceed $500,000 at 7.5% not to exceed February 1,2020 subject to
certification of costs.
.
I
.
.
.
JUN 1212 · 98 11 : 22AM EHLERS & ASS~jfi~~_. ~,OOO Not. pvai7.S"JI.
P.4/8
I!lMN IlIld AAodaI'" ltlc.
CITY OF MON1lCELLO, MINNESO'CA
lntereal Ralll
Tax Extension Rata:
Inflation Rate;
T.L'. CASH FLOW ASSUMPTIONS
7.500%
1.12 Pay 97 Ratfl
0.0000%
PIN
Monllcello Mall
Total
BASE VALUE INFORMATION
Marl<el CIaIS
Valuo Asta
802.400 2.?OIJ"O%~.
. _ 802.400
Tp
CapacItY
30,146
30,146,00 Estimated Pay 98 Tax Capacity
PROJECT VALUE INFORMATION**
Typ. of Tax 1nGl'.m.nt Oitlrlct: AeQovllopmant
Typ. of Dw.Iopment: PIela"
Number of Building Square Feel: 70,000
3.000.000 Pay 00
Estimated Mart<et Valu' of New Project:
Class Rate on nrat $150,000 of Market Value
Class Rate Markel Value :> $150,000
Eslimatld Tax capacity:
EalimKled Taxes:
Aaseuor's Mari<ol VIII""'a.!.
Taxuls.f.
-rn_ .stimatM Wle intO account the n_ tax classili~lllll\ ra1ll changes.
2.70%
4.00%
, 18,050 Pay 00
132,216
$42.llfl
$1.89
011281118
p.'
JUN 1212 '98
11: 22AM EHLERS & ASSOCIATESv.....oo .
$3,000.000 alUlI - or- ,000 Note PV II! 7.S'l't
P.5/8
CITY OF MONTICELLO, MINNESOTA
.
Baae Project Captured Semi.AnnUOl Admin. S.mi--AnnulII 50% Local Years
PERIOD BE:GINNING Tex Tax Tax Gross Tax at Net Tax 01 Match at 01 PERIOD ENDING
~.. Mlh. Yr. CapacitY capacity Cal!!9.~_ Increment 10.0Cl'l' Increment Increment 5.00". Increment Yrs. MtfI, Yr.
0.0 02-01 1998 30,146 30.146 0 0 0 0 0 0 0.0 0.5 08-01 1998
0.5 08-01 1998 0 0 0 0 0 0.0 1.0 02-0' 1 iiil
1.0 02..0' 1999 30.146 30.146 0 0 0 0 0 0 0.0 1.5 08-01 1999
1,5 08001 1999 0 0 0 0 0 0,0 2.0 02-01 2000
2,0 02-01 2000 30,146 118,050 87.904 49.226 (4,923) 44,304 22,162 2,46' 0,$ 2.5 08..01 2000
2.5 08-01 2000 49.226 (4,m) 44,304 22,152 2.461 1.0 3.0 02-01 2001
3.0 02-01 2001 30,146 118,050 87.904 49,226 (4,1l23) 44,304 22,162 2,461 1.5 3.5 08-01 2001
3.S 08-01 2001 49,226 (4,923) 44,304 22.152 2.461 2.0 4.0 02-01 2002
4.0 02..01 2002 30.146 118,050 87,904- 49,228 ('-923) 44.304 22, 152 2,461 2.5 L5 0s-01 2002
4,5 oe..o 1 2002 48,228 (4.923) ",304 22, 152 2,461 3.0 5,0 02.01 2003
5.0 02-01 .2003 30.146 118.050 87,904 48..228 (4.il23) 44,304 22, 152 2.461 3.6 $.6 0&-01 2003
5.5 08-01 2003 49.228 (4,923) ",304 22,'52 2.481 4.0 6.0 02-01 2004
8.0 02..01 2004 30.146 116.050 87,904 49,226 (4,923) 44,304 22. '52 2.461 4.5 6.5 08-01 2004
6.5 08-01 2004 49,226 (4,923) 44,304 22.'52 2.461 6.0 7.0 02-01 2006
7.0 02-01 2005 30,148 118,050 87,904 49,226 (4,923) 44,304 22,152 2,461 5.5 7.5 08-0' 2005
1.5 0&-<11 2005 49.22l! (4.923) 44,304 22,152 2,4151 6.0 8.0 02-01 2006
8.0 02.01 2006 30.146 118.050 87,904 49.228 (4,923) 44,304 22. 152 2.461 6.6 8.5 08-01 2006
8.5 08-01 2006 49.228 (4,m) 44,304 22,152 2,461 7,0 9,0 02-01 2007
9.0 02-01 2007 30,146 118,050 87,&04 49,226 (4,m) 44,304 22,1152 2,481 7.5 9.6 08-0' 2007
9.5 08-01 2007 49,226 (4,923) 44.304 22.152 2,461 8.0 10,0 02..01 2008
10.0 02-01 2008 30.146 118,050 87.904 49,226 (4,923) 44,304 22,152 2,481 8.5 10.5 08001 2008
to.$ 08-01 2008 48,228 (4,923) 44,304 22.152 2,461 9.0 11.0 02-01 20011
11,0 02-01 2009 30.146 118,050 87,904 49,228 (4.923) 44,304 22,152 2,461 9.5 11.5 08-01 2009
11.6 oa-o 1 2009 49,226 (4.923) 44,304 22, 152 2.461 10.0 12.0 02-<1' 20'0
12,0 02.01 2010 30,146 118.050 87,904 49.228 (4.923) 44,304 22,152 2,461 to.$ 12.5 0a-01 2010
12.5 08.01 2010 4i,228 ( 4.ll23) 44,304 22,1S2 2.461 11,0 13.0 02-01 20"
13.0 02-01 2011 30.146 118,050 87,&04 411.228 (4,923) 44,304 22,152 2.461 11.5 13.5 08.01 201'
13.5 08-01 2011 49.226 (4,923) 44.304 22.1$2 2,461 12.0 14.0 02.01 2012
14.0 02-01 2012 30,146 11 a.o5O 87,llO4 49.228 (',;23) 44,304 22.162 2,461 12,$ 14.5 08-0' 20'2
14.5 08-01 2012 49.226 (4,;23) 44,304 22,152 2,401 13.0 15.0 02.01 2013
15.0 02-01 2013 30.146 118,050 87,90' 49,226 ('.923) 44.304 22,152 2,461 13.5 16.5 Q8.01 2013
15.$ 08-0' 2013 '9,226 (4.923) 44,304 22. 152 2.481 14.0 18.0 02-01 2014
16.0 02-01 2014 30.148 , 18,050 e7,S04 49.226 (4.923) 44,304 22. 152 2,481 14.5 16.5 08-01 2014
16.5 08-01 2014 4&,:226 (4,923) 44,304 22,152 2.481 15.0 17.0 02001 2015
".0 02-01 2015 30.146 "8,050 87,1104 4&,226 (4.m) 44.304 22. 1 52 2,481 15.5 17.5 08-01 2015
17.5 oa.Ol 2015 4Q,228 (4.923) 44,304 22, 152 2,461 16.0 18.0 02-01 2016
18.0 02-01 2018 30,146 118,050 87.904 49,228 (4.923) 44,304 22, 152 2,461 16.5 18.5 oa-01 2016
18.5 08-01 201S 411,226 (4,1123) 44,304 22,152 2,461 17.0 19,0 02-0' 2017
19.0 02.01 2017 30,146 118,050 87,904 49,228 (4.923) 44,304 22,152 2.461 17.5 19,6 08-01 2017
19.5 08-01 2017 4".226 ('.823) 44.304 22,152 a.401 18.0 20.0 02-01 2018
20.0 02-01 2018 30.148 118.0&0 87,904 411,226 ('.1123) 44.304 22,152 2,401 18.5 20.5 08001 2018
20.5 oa-ol 2018 49,226 (',923) 44,304 22.152 2,41'1 19,0 21,0 02.01 2019
21.0 02-<11 2019 30,'46 " 8,050 a7,904 48,226 (4,923) 44.304 22.152 2,461 19.5 21.5 08-01 2019
21.5 08-01 2019 4&.226 i4.923) 44.304 22.152 2,461 20.0 22.0 02-01 2020
T Olats 1 969.050 (1915 905\ 1.77;.~~",~ aas.an
.. 'u Pre$et'll Values 873,126 767.313f 785.814 392.907
TAX INCREMENT CASH FLOW
.
.
ENera l\Ild A,s$odIIlOS. Inc.
01/H/98
Page 2
.
.
.
JUN 1212 '98
11:22AM EHLERS &: ASSOCIATES .
13,000,000 "..... $400,000 No. ,." &17,$%
P.6/8
CITY 01' MONTICELLO, MINNESOTA
'_1 value i. $4O(),OOO ~ jnl0J'8ll1 begins 10 .....:ruoo on May', I118B r.U'I.. lhllll FelllUllY " 111$8.
Ehl.1$ and ARod_, lnc.
01/2elQ8
"'1183
.
.
.
JUN 1212 'gS 11:22RM EHLERS & RSSOCIRTES
53.000.000 V_ . 1400.000 "Ol. PV II 7.5'.4 . N.w C'", !'W..
P.7/S
CITY OF MONTICI-:I.I.O. MINNI-::SO'fA
T.lF. CASH FJ.OW As...~(1MPTJONS
Pay 117 Rale
In......l Rett
Ta~ EXlen,ion Rllta:
Inflalilln RIlle:
7.soPo/.
1.\2
0.0000%
PIN
MOriiiCoIiOMaiI-n.. .
TIlIAI
BASI': V Al.{IF. INFORMA'nON
Marlle\ CIil&S Ta..
Value Rate CapaeilY
.. .. . "102.40Cn.45%13.5% 26.500
-~~:'.: :. ~"... '802.490 . ...-...----.2&:-~9:9!L. ._ ..._.,_...Ellirnaled Pay 99 Tn Capacity
PROJECT VALUEINI"
Type 0 n.. Inerement DiStrie\:
Type 01 DCVOlapm$fl\:
Numb(lr Ol 8lJilc:ling SqUQ'1l Feel:
RMATlON..
Redevalopmenl
Retail
Esllmated M.rlCel VSlull of Now P.Dj(le\:
CI... Flal. on r,'1I $' SO.Ooo 01 M;>r1cOl Value 2.46%
Clala Aale Maillet VSlU. ~ $'50.000 3.50%
eallmal*! T... CapaeJ\y:
Eallrnate<lT_:
ASaaasora Maillet Valun/$.f.
TuNla.!.
The 1 1ilge L.llgil1lSIUf8 again redUClld l:OITW'IIIll'lll81 (;lass rates
!;N'" aIICI AlaOCial.a, In...
owma
3.000.000
103.425
"(;.836
$42.86
$1.65
70.000
Pay 00
Pay 00
(').<510 ~".\ .'^-">. ..~<,.:~
page'
.
.
.
JUN 02 '98 11:23AM EHLERS & ASSOCIATES
$~.QOO,OOO VII.' . '400.000 Nell PV .7.5% . NOW cu.... R.ld
PEAIOD BEGINNING
Yrs. Mth. Yr.
0:0 02.cii .. 1996
0.5 08-01 1998
1.0 02.01 1999
1.5 08-01 1999
2.0 02-01 2000
2.5 08-01 2000
3.0 02.01 2001
3.5 08.01 2001
4.0 02.01 2002
4.5 OS.Ol 2002
5.0 02.01 2003
5.5 08-01 2003
6.0 02.01 2004
6.5 0&-01 2004
7.0 02.01 2005
7.5 08-01 2005
8.0 02.01 2006
8.5 08.01 2006
1M 02.01 2007
9.5 08-01 2007
10.0 02.01 2008
10.5 08-01 2009
11.0 02.01 200~
1 1.5 08-01 2009
12.0 02-01 2010
12.5 0&-01 2010
13.0 02,01 201 1
13.5 06.01 2011
14.0 02.01 2012
14.5 08.01 2012
15.0 02..01 2013
I S.5 08-01 201;!
15.0 ONll 2014
16.5 08-01 201.,
17.0 02-01 2015
17.5 08.01 2015
18.0 02.01 2016
18.5 Oa.-01 2016
19.0 02.01 2017
19.5 08-01 201'
20.0 02..01 201S
20.5 0e-01 2019
21.0 02.01 2019
J,1.5 08'0'.. .~019
..
Enlo... "". """",",Id. hl<:.
SMC
Tax
Capllc;lty
28,509
211.S09
28.509
26.509
26.5O!'l
26.$09
26.509
28,509
28,509
26,509
'-'\.509
28.509
26,509
211.509
26.509
213.509
28,509
26.509
26,509
26.509
26.509
26.509
CITY OF MONTICt;I.I,O, MINNESOTA
P.8/8
.tAX rNCREMENT CASH lo'LOW
C~Plured Somi.Allnual Admin. Semi.AIliiu.J First S22,500--'Rert\llinlng
Tit. GIOllS 1&11: III Net Tax 1)1 For TI
92~~~~~!'lo._'.0:00'1!'6" Inc;Illmetll iff' lnr.r=t\nlo N01<l
000 0
00000
o 0 0' 0
'3.073 (4.307) 39.766 22.500
4,1.073 (',307) 38.166 22.500
43.073 (".307) 34,768 22,500
43.073 (',307) 38.766 22,500
43,073 (4.307) 38.'66 :/2,500
43,013 (4.307) 38.766 22.5oo!
43,073 (4,307) 38.766 22,500
43,073 (4.307) 38.766 22,(;00
43.073 (4.307) 38.'66 2:MOO
43.0'3 ('.307) 38.'66 22,500
43.0'3 (',30') 38.168 22.500
43.073 (4,30') 38,166 22.500
'3,073 (',30') 3&,766 22.500
'3,07:1 (.,30') 38.;66 22,500
43,073 (4.30') 38.'66 22.500
':1,0'3 (4.307) 38.766 22,500
43,073 (4.307) 38.'66 ?-2,500
43.073 (4.307) 38.'66 22.500
'3.0'3 (4,307) 38,'68 22.500
43.073 (4,307) 38,'66 22.500
43.073 (S,3O') 34.766 22,500
43.073 (4.307) 38.'68 22.500
43.073 (4.307) 38.788 22.500
43.0'3 (4,30') 38,788 22,500
43.073 (4.307) 38.788 22.500
43.0'3 (4.307) 38,7811 22.500
4.1.073 (4,30') Ja,766 22,500
4.1,073 (.,30') 38.'66 22,500
43,073 (4,3D') 38,766 22.500
43.0'3 (..307) 38. 'll6 22.500
4.1,0'3 (,1..307) 38.766 22.500
43.073 (.,307) 38.766 22,500
43,0'3 (4.307) 38.768 22,500
43,073 (4,307) 38.'66 22,500
43.073 (',307) 38,'66 22.500
.3.0'3 (4,307) 38.'66 22.500
43.073 (4.30') 38,'66 22,500
43,073 (4,307) 38.'68 Zl,SOO
43.0'3 (4.307) 38.'88 :/2,500
43.0'3 (4.30!). .~"88 22.500
1,722,918 .(1722~L... 1.550.82' 900,000
'63.9a.~n_" rr,6,.3Q9J 697.587 399,083
ProJect.
Tax
Ca~acilY
. '267509
26.509
103.425
10J.425
103.~2S
103.425
103.425
, OS.42S
103.125
103,425
103,425
'03.425
103.125
103,425
103.425
103.425
103.425
103.425
103,425
103.425
103,425
103.425
T01illi-" u
.n :p!8S$m V!\'.u...,
76.916
76,918
'6,918
76.916
76,916
'6,916
78.$18
'6.91G
'6,9111
76,916
'6.918
76,918
'8.916
'6.916
'6.916
7U16
76.916
'6,918
'6,916
'6,916
~
M;~:al Y"o'f' PERIOD E~~;N~l
5.00% Itlc;rcmenl Y'4. Mt.'" V,.
~,.~.. - 0 0.0 6:5"'-08-0; 19981
o 0.0 1.0 02.01 1999
o 0.0 1.5 06-01 1999
o 0.0 2.0 02.01 2000
16.266 2. 154 0.5 2.5 08-01 2000
16266 2.154 1.0 3.0 02-01 2001
16266 2,154 1.5 3.5 08..01 2001
16.266 2.154 2.0 4.0 02.01 2002
16.266 2.154 2.5 4.5 08-01 2002
1 e.266 2. 154 ! 3.0 5.0 02.01 2003
18.266 2.,541 3.5 5.5 oe.Ol 2003
18.266 2,154 4..0 8.0 02.01 2004
16.2661' 2.154 4.5 6.5 08-01 200.
18.286 2.154 5.0 '.0 02.01 2005
16,266 2,154 5.5 7.5 09.01 2005
16.266' 2,154 8.0 8.0 02-01 2006
16266 2,154 8.5 8.5 08-01 2006
16,266 2.154 7.0 9.0 02-01 2007
16.266 2,154 7.5 9.5 08-01 2007
18,2t\6 2.154 8.0 10.0 02.01 2008
16.266 2.154 a.5 10.5 08-01 2008
16.266 2.154. 9.0 11.0 02..(l1 2009
16266 2,154 9.5 11.5 0&-01 2009
16.266 2,154 10.0 12.0 02.01 2010
16.266 2,1$4 10.5 12.5 OS.OI 2010
16.266 2,154 11.0 13.0 02.01 2011
16.266 2.154 11.5 13.5 OS.OI 2011
16.266 2.154 12.0 14.0 02,01 2012
16,266 2.154 12.5 14.5 08.01 2012
18.:il6ll 2.154 13.0 15.0 02.01 2013
le,2ee 2.154 13.5 15.5 oe.Ol 2013
18,288 2.154 14.0 HI.O 02.01 2014
11.288 2.154 14.$ 18.5 08.01 2014
16288 2.154 15.0 1'.0 02-01 201S
18,260 2.154 15.5 17.5 08-01 2015
18,216 2.154 111.0 18.0 02.()1 2016
16.286 2,154 18.5 18.5 08.01 2016
18.2G6 2.154 17.0 19.0 02..(l1 2017
16266 2,154 17.5 19.5 08-01 201'
16266 2.154 18.0 20.0 02.01 2018
16.268 2,164 18S 20.5 08.01 201S
16.266 2.154 19.0 21.0 02.01 2019
16.266 2,154 19.5 21.5 08-01 2019
16.266. ... ..J..lli _~9P_...22.0 02.01 2020
6~9'2~'
..288,~
PSllo2
.
.
.
BRADLEY V. LARSON
STEVEN]. MUm
]AMES G. METCALI:, Of COUNSEL
(197S-199S)
Metcaffi Larson & Mutfi) P. A.
ATTORNEYS AT LAW
313 West Broadwlo/
P.O. Bo;\: 446
MOI1.tiCdfo, Minnesota. 55362-0446
SALLY B. NELSON
PARALEGAL
June 3, 1998
TELFfHONE
(612) 295-3232
FAX
(612) 295-3132
City of Monticello
HAND DELIVERED
ATTENTION: Ollie Koropchak
Re: CUB
Dear Ollie:
Pursuant to my telephone conversation with Steve Bubullast week regarding Ba.Il}'
Fluth's resolution of the "Right of Consent" with K-Mart's landlord I herewith enclose a
copy of the executed Agreement. Essentially Mr. Fluth is to pay MW (K-Mart's
landlord) $10,000.00 per year for a period often years after which he has the right to buy
out the Agreement for $150,000.00. The specific terms are set forth on Page 2, Paragraph
1.
As I indicated on the phone it is Mr. Fluth's request that the BRA consider an
amendment to the TIP Development Agreement to help in this totally unforeseen and
substantial expense. The project will not go forward "but for" this payoff over time and
certainly could reasonably be construed as an appropriate TIP Development expense
under the statute. As you may recall the BRA substantially reduced Mr. Fluth's original
TIP request and I would urge the HRA to favorably consider the unforeseen position he
now finds himself in. Unfortunately I have a conflict this evening and will not be
present. Thank you for your consideration and cooperation.
Respectfully,
METCALF, ~AR~...S.ON~&~' PA
;/ ,~.r:-.'~'---" .. ...-_...... ~._~--.........
t ..~.__...-->-
BY6~- f
. r:::lrlley V :::lr.;:on
-'~.....~.. ..
BVL/sn
cc: Kennedy & Graven, Chartered
470 Pillsbury Center
Minneapolis, :MN 55402
Attn: Steve Bubul, via facsimile 337-9310
BBF
Apr-27-9a 02:19P Lotu~ Realty
. Ap...-.-Z7-98 12: SIP
.
.
.
AC;REfi:l\fENT
THiS AGREE.\fE:NT, made lJnd enccrc& inro Ihis _"":...i. day of Ap.jl~ 1998, by
and between 88F Propertie~. rC'lC., a ~fiMcsotll corporation ("BBP") and
MOficicellolW'ashingtl1n Associ:u:es Limited Pal1"n~rshj~. a Min.nesota Jimi.\c:d Panncnbip
f'MW").
UCIT A.LS;
A. BBF and MW (sometime:> coll<<tiv..ly referred to as "PlJrties") aR the: owners of
certain l"e.3.1 proper1)' .siclJ"ccd in the Cil~- ofMonricello, Wrigl\l County. MilU'leso~, whicn
real property oansists. afth..: followmg contig\l.o\ls pOIJ't:C"Is:
I. The "M~U ?.a.ri;Q}" is owned by BBF and is lci:."llly described OJ) the
atlac/u:d Ell".hibit A: tlnd
il. The "K-Man Parce!- is IJwned by ~ :snd Is leg3Jty described on the
anachcd E~hibir B.
B. Lincoln MonticcUo Corn[n~r.::.i,1 P&t'I.ners Limited P.:innecship, a Minne$ot.;a
limited p3ttnership. and K.M. Limil~-d Partnership ("KM") have previously executed that
eert:Jin DC'~lu.(iol1 otRecipro~ul Ea.~emc:n's dated etrC'C"ri\/~ as of JanIJill')' 23. 1990,
rc::corde4 March J 6, 1990, in the Office of (be Wright C OUl')ty ReCQrder ~ DOCWTietlt No-
470483. in Book 97 c( MiscelbneQU5. pag!;" J49. a:s amended by First Amendmc-nt to
Dedaration of AccipIOcal Ea$C'ftlenlS .;1at~d Janu3l)' 7. 1991 ~tw<cn Lincoln Monticelto
Commercial Partners Limited r;artn~rship and Of cecorded J31'luot)' 25, 1991 in the
Office ofthc- Wright CQunty Recorder as 'Docunlcnr No. 484390, ill Book 99 'Of
Miscellaneous. page 236 (such Declaration. as amended by $ouch 'First Amendment. is
here..ficr .;~lloed the nDetlar3\ion"). ~lW is the successor in intercst to lCM.
C. MW ha;s agret..-d tQ excc:utc a Slteond Arn~ndlnent (0 Dcclaration ofR.eciprcx:al
Easements of even d.arc: hcrc:\\rith, ;l copy (')fwbich j$ 3ntlched he.r=lo a:; ~xhihit'C .
("Second .A..mendmeut").
D_ 98F desires 10 (i) demolish the building cunef\lly Iocared on the ]l.-Wl Parcel. (ilj
COi\Sfrllr;, a new building on dur Mall PaJ'cd COtlSistinl; ot"::l S\.lp...mlarltet of .approxirll.ue-)y
66,760 square feet and retail :;p"ce ofappr.,;'(.ima.d,y R.900 square- fect (the ''R.cuil
Sp~<;~"). :t.nd (iji) re~onIlglJn: III"': <;IJnlmon ::l~.as of the Propeny, all 2.S depicted 01\
"'iOITc:caIJbb"'",QPU 1
p_u..;s
P.02
P L tu'" Realty
Apr-27-9S 02:20 0 .
Ar~-27-ge l?:filP
.
.
.
Elchibit C Il<<ached to (he Second AOlendolcnt (such slJpt:rmarket., Retail Space and
COnllnQn areas ate h<<4ir\3ft...:r .:oU~I;lI....d~ call~d th~ "lrorro....cm.cl\lS..).
E. 88.... ha$ entered in i\ fuse f(\f s\.Ich supermark.et w~th SUPER V A1..U INC., \lIfbich
lntlllnds to open <1 Cub FO.;lJs ill ;;ud. su~rnw.ck~t (,provided t1\a.t nothing con.tained in this
Agn::cn\Cn\ sholl n:'1uirC" SUP(R v ALU INC. or any "WIler or orJ'~c:r tenant of the M..a.IJ
Parcel 10 opom a Cub Food, Dr ocher business at !hI: Mall Parcel, to remain open for
bu$jnes~ to reopen (Of busifless in the e"'cnt it open5 and then dO$es. or othc:rwise 10
operate or conduC"1 , Cub foods or any other business ill the Mall Parcel}
r. 1P order 1.0 in~ucc MW 10 I:xel;utc the Second Amcndll1<:nt ~tld this Agreement,
Uie panics hllve agreed tv (;~rt;)in p~)'mc.1\ts and cot)ce5sion~ ;,lS hc:rcl1fter set forth.
NOW. mEREfORE, in .;onsidcration o!thc- fOfegoIDa. and in,onsideralion or
me murual covenants heNin c"nli,inea. ,,,hieh e;3c.h ofHl>: pauies hereto 3ckl1owl~dge 3..
adequ.alc and .:lutlici~nc, j( is hereby agre~J 35 follows.
I. BBF .shalJ ptJy to MW, ils successors or assigns. the following amounts:
3. $'0.000 pcr }'~r" eonlmcncin~ on the;: "Commen~menl Dat~". 2$
hn-eina!kr ddi.lcd. for a. penod often (10) year5;
b, Thereafter, during the It rh throueh the 15tll years (ollowing '{he
COMJ>>.::lloCemcnt Date, SBr shall ~y to MW the sum ofS 1 5,000 per year:
c.
Thereafter, duri nc (h~ 16lh thtoua.h the 10th }"CMS following the
COl1"lm~ncC'Jn.:nt Date!, B8F shnU pay to MW tbe sum of no,ooo pet )eat;
d. During rhe 2t~r Ye3( and Ihereafter throu,b the Term hereof. as berein
pro",idcd. BBF sh~U 'pill tu MW .he $W1\ of$25.000 per year; and
e. Reimbursement of reason;lbJe attorneys (.:es and eXpC"nses incUlTed by
MW in connection ....-ith th~ review and ~xec\ltion ofthis Agreement and
rc:l.llcd dOl.;uf11-t-nu, not [0 eXc~ed $5.000_00.
2.
Coumten~eruoCnl DDt~.
The C ommenct'menc D:Ill: of Ihlt Term hereof'and
the payzll.<ents provided for by See-cion 1 hereof .shall be the earher of the eonunencernent
dale of rhe lease: with SUPERV ALtJ ~)(ecutcd b:)' aeF for an)' portioo of the newly
recon;st~er(:d b\.lUdinS> prcpo;sed tv be corrstruct4..'d on the Malt P'art:c-l, or the date upon
,....""..r1'I>bftl.r\$Otll.:J
2
p_03
L t Realty
Apr-27-98 02=20P 0 U~
Apr.-27-98 12=51P
.
.
.
which $UPERVAlU ~h:\ll ope'11 for busin'::i:' ,,\'ithin such newly constructed bUJldings,
but in 110 C'\I~nt hI.teer thall 1.1)1 u,"'r.~ 1, '99~.
'}. Merhod of raYJ~~J.l.!. BBF sn:llJ pay the appropri.uC' amount provided in Section
) hcreoffo MW on or bcfor.: Ih~ 1 s( d3Y or eac:h succeS:5jl.'~ YI!:;lr of (be Term hereof.
4. lamination. This Agrc~ml.":nt, and the obJigntivns ofBBf set forth herein, shAlt
confinue ufttil the: earlier of.;,) rh.,; c:~pi,.nion or t.:rOI llliltion of lh~t ~c;rt3in h:ase d~ted tht..'
6th d~y of Feb~"., I 990, by ;and hdwcen Montt...:dIQ K.M. Limited Pllrtn~r$hip.
l.4nJIOJJ. and J( -M;sf1 Corporation, T enan!, including; allY renewals or extensionJ thereof.
.nd/ur the date upon \....hkJl K.Man Corporation. iu :!;l1CCC$sors or as:>igns. is ev[<:ted from
rhe K.~Mnrt Pared by re3S011 of n defJuIl undO!r tl1.c K-.'I.brt L:~se (withour termination of
the K-Mart Lease);. or b) the expiration or totl'Jllin.a!iOl1 of [he lease cbr~d Ihe 26th daY-.:Jf
January, 1998. by Alld bClW":Cll BIlf Properties. ]11<:., Landlord. and SUPERVALU. Jnc.
Te1'Iant, inc.luding :1n)' renewnl::; or cxtl:.nS1Qns th~(eof, and/or Ihoe- dal. upon which
SUPERV ALU. In~., its SUCCC5S0rs or .lssigns, is c\."iett:Q from rhe M311 Parcel by reason of
a dcfaw( wader Ute SVP'ERV ALll Lease ('....ithout term.narioll ofth~ SUPERVALU
Lease).
Notwithstandin.: .;Iny pr(\vi:si.,n~ contained jn sl;ction ";(b) above stared, the:
obligalions conbinc;J Ilc:'r~LJn.:!.:r f";'f Ill.:: pJ~menlS to be m:Jdc pursuant (0 this A'tc.e11"l~nt
sh~l cot'ltinue in fQlJ fM~c .)(1J ~f(","a continuously SI) long as lhl; space to be o';;(,:l,1pied
and will be oc:cupjed by SVI'J:l(V.'\LU wiJI be So occupied either b)' SUPERV ALU or
un)' other renanll\ot to C"xl:L'cd the uj"i/itinll. term ofdle' )C:llSC ,,'ith SlJpgv ALU in4;hu1ing
any cxtt:~ion.s thereof Jlld an)' ,>ucces.;;or$ or 3ssig,,:;.
".t01.~"'bqh.M""* \
3
p.04
tu"" Realty
Apr-27-98 02:20P La -
Apr.-27-98 12:52P
.
.
.
5.
T~.rmi.natiolJ fh'J}.!!Y9ul.
BBF shall h.:xvc fh~ optjQn fO terminate this
^~~ement by payment to MW. its SUCCeS5v[$ or assi~ns. ofrhe "Buyout Price", as
hcrc:ilt3t\e.r defmed. BlJF 1n3)' e-.lC~rClse this right by giving wrinen "'Notice oClntent to
ExC'rdse" this oplion no less rh.:ln Ihirf]' (30) QO)'s prior to rho proposed date of
tennjnarjon 8( .ny time ~;ilhi" the six-momh period commencing on the tenth 8Mivcrsary
of the d2\~ hcrc-ofC"Ficst Buyout"") :wdlar within (he slx-mon\h period commclXing an
the: lwen'ieth anniv~rsury of the date l~reof ("S~ond Buyoul'"). For the 9tlrpv$C$ hereof,
the "Suyout Prit;;c" for the Fiul Buyout shall be S150.000 a1'lIJ the Buyout Price (ot me:
Second B-uyout shall be $250,000. Paynlel'll ofehe: Buyout Price shan be mad. in cercifj<<f
or lmmedlate\y collectible flUld$ to MW. its $uccenors or assigns, prior to the last day of
lhe appropriaw Buyout Period.
6. Surrender of ~i2hts.. to C9nsc!1r MW agrees, ro the conCtary not'\llooirhsW'ldine in
1DY decJaratiolU. eascm~nls, or .am~ndm~nt$ theretn, no {t.arthcr con.!l~nt shall be requ.ired
from MW, i~ succc,s-SO(S or assigns. with rl':::>pc.ct (0 Iny m3.tt~rs feInting 10 the
mainte.narsC'~. "oLlStrucllon, re~onstruction, reuloddins. recQnficuration or rehllbilitation
of tbe building prcs-emJy e:ci.5til1~ or to b,,; constructed 'by BBF on rheMAIl Parcel as
provided in (he XCOJld AlU<flldmenl. as lOf)~ .as any $ucb ron:StT\Jction activi1y shaJl not
alrcr. impair, a"'ro~4h; Q[ chilng..: the p3rking of ac~c's ri~h(;j &(1){cd to rhe K-Mnrt Parcel
auldcr the D<<lararlon. as 3ml;nd~rJ (rum lim~ to time:.
7. f.,irst Riebl of Ref'uul te> 'P\lTcha..'i~. O....QCiN\.
A. t=:JW Right. USBf a.\ any time durin, the term ofrhis AareemQ.lt recej...C's
one or more bona fide: offer:; frOfl1 di~n(<-t~(ed rhirJ parties 10 :>"'tCh3~C the Mall Par~ef.
arid if ~ny sucb offer is Ilcccpl:lblc: to BDF.. then BBF :lIgre-es CQ notity MW In wriUn,.
givine the name and a.tIdrc:s$ of1he offerQr, and tbe price, tenns and conditions of s\lch
otrer, and. MW :ih~r ha~e thin.r ()O) d;s)'~ from and after the receipt ofsu~h notice (rom
rnroJI_pI/M.i!hlln..onk)
4
P.o~
L tu.... Realty
Apr-27-98 02:20P a .
AP~-27-98 12:52P
.
.
.
BBF in which 10 dc~( to pUtcb:\Se th~ property for the c'onsidcrarion c:ontain~d in the bon;i
fide' of!t-"( by dclivc:rin~ .a "".nllCD notice c>f .Iceti"n to t:xerc.il't the purc:hase opt.ion Jttr~jn
S~t forth f'E~erci$C: Notice") 10 RDf within \hr; afolc-s.:1id thirty day period. IfMW does
not elect to purc:hase (hI,.: Ma.ll P:uccl purSl.l3.rtt to this Opt'OD after ~ch notice by BBF,
and Bar Lh~rcafter ~dls the 1-fall PJ.rcd, the pun:has-=r shan lalel! the property. subject to
acd 'burdened with ~I tho;: tcmlS~ J'IrCl1olisions t:lad condirion.s of this Agrccmc-cf, excluding
this provision. m the e..-~ntlhat MW sJull fail at any time fO ~)(er<.~ its option UIld~r Ulis
Seclion and BBF sh.aJ1 compl~t~ the sale of the Option Pto~rty pursuant to the offer for
which notice has been giv(;n tl') MW pursuant hereto. MW'5 rights under tbis Section
shan terrnin~te ::IS of [he d;lCe of 1 he!: dosil)g ofsu,h tt01nsac:tion. Ia the event that the
transaction con1emplated by Chool nOlke Riven by BBF 10 MW is not dosed. MW's nehlS
hc.r~undcc shall continue ~5 tu any :>ubsequ.:nr olf.:r ro pU(I.:hase the Mall Parc<1 received
by B8 F-
B. flBF Righr. If MW at lln) timt during the ferm ofrhis Agreement
Rccivc$ one or mor~ bo.n<l fiJe Ofret5 from JisiS1ter-c:~h=d third panics to purchase the K.'"
Mart Parcel. and if any such offer is a~tC'ptablc to MW, then MW agrees [0 notity B8F in
writing. givi.ng rIle Jl:)meo 2l'IJ ~,JJ,r:S$ of (he o ffo:: ror . .and tho:: price, terms and conditions of
such offer, and B8F shall have thirty (0) d;-tY' fronlond aflee tht; rec:eip' of such nor ice
from MW in which to elccr to purchase the pn>penr f...,=- the considenaltOn c:ontained in the
bona fide offet by dclh...:rin~ a wrjUO;:Il nOli,,;.; of dectilJn to ..:,~<,;rcis~ the I'urcbase oplion
h.erdn Set forth (UEx<<rcisc Notil;:e") tQ MW witJun (he: aforosaid thiny day period. BBF
hereby ac:know)cdSe$. ,hallh(,;r~ is II prior righl of first r~fusnt created in f8VOf of K.Matt
in its lease witb MW. If K-Mar1 ..hall exercise irs righl'u pureh;1~e thoe K.Man P,aKel
pursuant to iu. rilht of tino~ refusut, the' aUF rlghr crcJted hereby sh:1I1 cemlinatc, IfK~
Matt shall fail to r:xerCl~1: such right and 88F has tim.;;.ly sef'.'ed irs Exadsc Notice, it
shall be cntirled to purchase the K-M<1"" Parcel "'$ herein provided. If BBP docs not elect
to purchase tbe K.Mro1 P;,t.r.:c! and'l-,{\V tb.:rcaficr sdls \he K-~brt Parcel. the purchas4r
shalJ tu.e the K-Mart 'P;u-cel. subjC'l:110 and burd.eMd wilh illI the re-t'm1.. provisions .:snd
<:onditictlS aflhis Aar<l:l1I.:nt. c)(duding this provision. In the eVent lh4t BBF snail fail at
any tlnle (0 exercise its option tmJ~r tllls Section and MW ihnII complete \hlt sale of d\~
Oplion Proputy pursuant 10 tit..; oct':T for ",hich notice h:ss beC'l) given to BBF puuuant
hereto, OBF's riebl'S und~r this Section shaH t~n::1f(: as of rh.:: date of the r;Josine of
$'UCh transaction. In the event that the: tl':ln.saction eontempJated by me noti,~ livc-n by
MW to 8SP is not clnsed. BBr's rights h.ereunder shan eontinuc as to any subscquent
offer to purchase the K-M~ITt paJ"C:c! received by MW _
c. Lim~ti@n$ qn Op,iQ1\. Not"..>.oithsundins any othc! provisions ofthl$
Agreement, the provisions of ,hi$ Section wm nc-t apply to any safe oflhe Optiol'l
Property or UJY prop.en:y of which the: Option Property ;U~ a pan at foreclosure:. and 5hall
Aot be bj"dine upon any purchasc:r se (or~.:IQ$Ufe. ..ny moftglJsr:e in possession, or any
hold.::!: of a deed in liCLl or foredo;jurc or the $U':C~ssots or assisns of an)' or the fongoing,
or to any sale offhe Oprion "ror~t't} in connection 'With sale and ka$cblld:. finaDc:.inJ'.
p, Tide I;vi~l1(lI'. In the (vent fh~" a ~tt)' eJects to rurchas.= propeny as
a.ra/H!c>ovw.~__, S
P.OO
L t <:" Realty
Apr-27-9a 02:21P 0 u.
Apr-?~-9B 12:52P
.
.
.
provided in this Agrccm....nt ("Oplion T'Wf'C!r1)"'), (hen the. .P3Tly o.....ning [he Option
Proper(y ("'Seller") sh.dl, '\\-illliu lhirly (30) J:.il)"S aft~c t.:-(;~ipt of such Exercise Notice
from the excrcising P"'.IY. dcli....tr ((.'! the:' Party dclivcrin~ the Excr..:ise NOlice ("'Buyer'') OJ
conU1'litmcnr for a tilk in!'iun\J\c": poli~y itl the amOtUlt of the c:onsjd~ratioTl sl!'l forth in
such offer. issued by a u:>ponsiblc riue .."Uaran(t'~ company, shO''''"g a good and
rnarketelbh:: ti1Je in $(Ikr. If Seller fails or refuses to furnish Z C()n'lJ'n'tmeru fet the IHle
policy. then Buyer m.i1Y. .at its eteo::tHm, procu("C' Ule same 01.( $el\e(,): e'lt;pensc:, in the amount
of the pUTchouc price. ;)l1ll .JclJLlt;1 [hI:' CQ5t 1Jlcrcof from Ih.: c~:sh cOMi.der8ti.on 10 be paid
for the Oplion Prvrc:rty. Bu)"cr .shaH ft"....:; thiny (30) days aft.::r receipt Df II commitment
for thc title- poBq in ".,hich 10 c:nmine rhe tille ~nd nOLify SellC'r whec.hl::r or not tllC title is
acrxpuble to Buyct. If 8u;rcr IS \vilJiJ)g TO 3C:C:Cpt Sellu's titll: and .:;ons\1J11mat.thc-
p\.lrCh:lSe, Ihen ScU,er shiilll, \\ilhillll:ll (1 0) d:J.Y~ .:dh;r wrilT~n notice thereof from B\lJa,
con.."ey the- premi$~:i 10 Buy.:r by fuIl Warrall(~ deed, fTee iJnd d~ar of nil lie-ns and
encu.mOFV\Ces excepr ;;:ocumbr::1tlcc.:i set [uno .;a.s ilC(;~pC3bh: or \Q be IIssUMC'd by (be bUyt:r
in the: original off~t rcc~ived t>y Seller from $...id dl;rd pany, and IUghway c.aseJnenls,
privaCe road casoUTlcftCS and reslrktions of n~.cCl(d Wllich W~fC of reco,:,d liS Qfthe dare of
Buyer's acs;:ept:llX~ of Iho;; pr(:'mi:iC"s h..::nl!unJe-f or incorporated i" an l11T1endmeot 10 this
Agreement, if any. ont.l dCJj\'CT sl,/ch dec.d lo Duyc:r upon tender of tht cOQsidcrOltiotl,
E. COfT~ction o(T;tl.: O.:fCf!l. In the c:".cnt that Buyer believes tl)i:at Seiler'S' title
is nOI tn<1rkct3hlc) nu;;~r 5h"ll ll'l:lko! ::In)' objec.tioJl51o Ihe m:tr"~Qbility cherenfin wtitin;
to Seller and Sell~r shaH }).: allQwe~ one hundred twenty (120) days ro utilize its best
efforts to mue such rille m3rkcI:.lble. f( snch title i:s lIot rendere-d marketable within OtiC
hWJtJrcd twenry (120) days fconl the- dalO: o[said \.\trilte!'l oojcclions thereto, Buyer rn~y. at
its election, rak.: Juc:h :lc!i<'ln. in.dudin, iD~cig111i(')n of legal process (in which Sciler Agrees
to participate) co remedy any ~uch dcf~(;( in title making, and to dedu.::t all co~ts lhr:reof
from the <:a,h considcfatioll to bc= paid (Of tha Option Propert)'. If Buyer is unahle to
cone<:t such defects in title or elects not to artC'mpcsu.:h rented)., n~ithcr put)' sh."dl be
held li.:Jble for dtll1la~o;;s to thl: olhcr pan}" ~J bOlh p3rti.;;s shall be ~k:u..d of aU
liabiliue:;: and oblieati(.lnS" Ul\f.!<;r (his $c<;rlon.
8 SUboord.il1;'!IiQ!!, The p;lrti,;:-:; 3~"-ce that this AIV(:~nl~nt shall, in all Ie$p<<lS. be:
junior and inferior To MY in$titution:tll1r.i1 mortgage: lien :.,ainst either the M:alJ Parcel O(
th. X-Mart Parcet whcrh~{ rr.:s~ntly or~c('l(d <If S1J.l:rscquenrly c>tec;uted and recCltd.:d.
MW a~e$ th::at jl will exccUfe :lnrJ promptly ddiv(:!r any rC'nsol)able :iubordmation
agrcen,c:nt,. ;and estopp.:l a,re<.\l~llf:i reqUired by an)' nlort'C3bO: Jc:ndc.r for lC'ither property.
and that ~cb.exeC:\llion ;.ml dc)j":~1} of suc;h doclUTl.::nrS may not k condilioned upvn thc=
~one&aUb"Oh'ft~on~J
6
P.07
L t "'" Realty
Apr-27-98 02:21P 0 U_
AP~-77-98 1Z:~2P
.
.
.
payment or any addjtjontll eonsidcrarlon, othe-r than reasonable O1ltame)'s fees and
expenses ineurrea in <,;onne..:tion with rhe r",vi~".,. and <lppro\.'ol l)f sucb document~.
9.
Jtemcd~-
In tlle ev~nt either PClClY !iha1) def1.lulr in its obligations hereuMc:r.
the non-def3ulti"S ,art~ may. i(such default $haJl (CnU..ll1 wlr.-::mediC'd for a J>Criod of
lbircy PO) day'" afier written notice of sueh def:aI.lJt given by the "on-defauhin, pany (0
she d~f"u)l'ing party. the non-def.;1ulrin~ p:uty sh:ttl be enlitled (0 pUJSue tuty legal action
av..iJable at law or c:quity fO r.."<Iress such defaull, provided. however. ihal the: only
remedies a....ailable sh:tll be sped th: pfrfotm.ancc of the t1:fD'JS hereolor personal judcment
spinst the defaulting paTl)' for dirC'C( consequenri:1I dam.ages atasin. from such default.
10. ~o~j~e$, Any noti~es tv be slCt'ved or deJiv4'Nd PUfSuo.U\f herelO .shall be delivered
by mcs.set!ger. or U- S. M;.ail, eel1ifid with rcnun receipt ..equcsled. ro the pa.cti.es Oil thr;
following addresses. or such oto.:r ..ddr~ss as mos)' be CS1<1bllshcd by the- rcspccti'Yc parties:
by written notice to the o(h~.r.
MW:
Jon H:m::iOn
~o Hampshire MOInagcmc:nc (:omp2ny
235 Moore Street
Hackensack. NJ 0760 I
BBf:
BBF PropcttiC"s. Inc.
19571 IIOth Avenue
Silt Lake, M'N 55309
Herman Lip~itz
Willi:.m C. Sehw3nz
1100 Fifth Avenut'
Pittsburghc PAlS::! 19
1 L MiKeJllJpeotJ$. This: A&;rc'~l'Jlent r.;pr-esclltS (he p;artic$ flnat expression oft~cir
intent and $"'rer$ed~$ all prior oroll ond wrinen a~",.o;nls relating 10 the subject Matt""
hereof. .shaH be dccu'l,,<J :\ Minn.-::sota o;ontt'~el. and 5h.JJI be interpreted and enforced in
~co..dan(:1C:' with Minn~S(lt3 law.
IN"O/l''CUiM>tiMMOt/t.)
7
P.o~
_ VG-"::.Lt' L-O~U:<'
...........--- 4;' - '!:1~ .
Ap~-27-9a 12z5?P
Keal-CY
.
.
~...~~
It is hcteby ~g(C'ed' :.nd \lndcr~tood th.at ~U t..:rtnS of\his Agreement do l\or; in an)'
way affect, encurnbiC'r OJ litnir the riGht ('of ""!ontic:c:lll)f'lJiashi'lgl(}n Associ~(es Limited
Partnership and J(.MlIrt 10 expand, cJcvelop. build upon 01 ex rend either the existing or
ne\.... facili{j.:s on lIte pared of hnd included within the propcflics now recognized and
de.sienafcd as the K-M:i1't prop..-r[y and fUt\h~t ideotified as Ib..:: Outlot ~C" .and any and $.11
incidents with respC\;t to the U$e ofthc s:lid Outlot "C" t\J\d any.and all incidents with.
t'CSpeC.l to 1he use of the s3id O\lllor "C" to be exercised by the- o\.\.'t1crs thereof withoul any
restrictions or ~n1pc.,'Snlio(\ to b.;: mild.: to BBf, its successors or usiens.
IN WITNESS WIIEREOF. Th~ parti.es: h~vc excl,.'Urcd this instrument lh~ dare:
firs' .bove wri~
Dated: _ 1.-1-
,19 t!Y"
BBF:
BBF Propenies. Inc.
fJ~7d2~/fZ
anyD:;Pf'uth ./
113 Prcsid.ent
MW:
Monf~c1JolW ashinalon Lim;ted
Partl1c:~hip. a. Minnesou Limited
PanncNhip
By: Montic:dloJWashing'on
~'~I'~
cQrpora" . GeneraJ Partnc..~
~y~~~-
ST A TF- OF MIl'J'NESOft\)
} .11.-
COlJJ'..ITY OF !- tel t U r}"""
The (o1ecolni instrument was ;acknowlcdacd befor.: me thls . t.../ da.y of Apnl,
1998. 0)" Sony D. Fluth, the J'>usid"Uf ofBBf Prop.::nic:i, Inc.,.. M~fa corp lion,
Oft o.:~lfofth.: co ralio>n.] .
e IRADI.lYV l,NtSON ~~
.... IUDrRf ,,*C-UltlfBOTl
M6t11'toUWl'Y
,..,~&oimJall.l'.ZQCI). "'-
""'. Notary Pu
IIU",,;'cptlbbCllla...,..kJ
8
.
"""J.>'---"::;"-:::JO V..:::Z..::.I...... LO"1;U'"
H l-" K -.....::. I - ':!? -0 . I.......~ .."
.
.
.
K~e 1"t..:Y
P.ll
COMMONWEALTH OF PENNSYLVANIA )
) SS;
COUN~ OF ALLEGHENY >
The foregoing instrument was aexnowledqQd before me this
27th day of April, 1998, by HERMAN LIPSITZ" the d~ly au~hor1zQd
repr.sentati~e ot Montleello/washinqton corporation, a Delawar.
corporation, General Partner of Montlcello/~ashin9ton Associates
Limited Partnership, a Minnesota lim1~ed pa~tnQr~hip, on behalf
~~:~~:,tnerShll>. , ~
..-,.'_"";:=~o-:""~"'.... ~.~
':l.'~~--~ _:-..'_- :...._~-:.s.- II
. ., , : _+ ....... .' ~ . ,.:1'1 - ....,.f.-I',
_ ..J' -~~,~ NGlarla'S."
. -;:: - - ~. e. Sch..artt. Notary Pub/Ie Notary publi, .
: ... .~ : ''''$burg'''. "lleOMtty Co","ty
':.- .- ~."'"':.~ .Jt"~ml!.lIlan I!x~relS May 0, ZOO'
-, ~ "~-./ ". ". - ,
". ... .... ../.. ",.;' .t\ 1\1""" D'Rn"~\"'u."':'" .1iJ'~"'I"'''' ", M""a'~
0."0.....:. '":..:"-:.~.,...... f . .
III'''\.", -I.... t# :..." ~ ~..,...
..... ~ ~ ..,.'
~-.....-....~.-'
.~~~ LO"1;U~ Keal"1;y
......pr-.c/-:::oo u..:;:~~~
Ap~-27-ge 1?:53P
.
.
.
EXlUDIT A
LEG^L DESCRlp-nON Of MALt... PAR.CEL
Lot 1, Block I 4nd Ouc10t A_ MontkelIo Mall. ".:cording to the I>f:u of record and on file
ill the; Register o(D~ed$ Oific..: i It "1l~1 [01 Wriihr County. Minnc:,o'll_
8rOIJ"'PItbt>'~kJ
10
P.12
P _ 11
~_ u.c.-':::'<:::~ L..O~U:;=
......pr-.:::/--~ ~
Apr-27-9A 12:53P
t<.Qal~Y
.
.
.
EXHIDlT B
LYCAL nf:sCRrPTloS Of Jr:.~1ART .P..\RC}O:~
Lot 2, BJodc 1 and Oudvt C. Kirkm,:ul Addition, according ro (he PlaT ofN:(;ord and on
file in the R~gister ofDe~ds Qm.,;;; in Jnd ~Ol" Wright COUI11)'.l\.1inncsola
Sucb propertY is 31so described tiS f.)lIo"\.~:
That ran Oflh.;- (Clllo.wins dC5cribcJ property:
Blod;s M Zlnd N of the Pbr of Monticello accordin& to, the PIal of Record
and Ql1 Crl~ in the Rl>~i:;tcl ofOccJs Office in ~nd for Wright Count.y,
Minnesota which Ii~~ l10rlhetly ofrhc northerly rjgbl.of~way line of
Intenbtt' llighv"OJI1-9<1 also Ih31 portiun oflocllst Strel;{ and Eighth
Stteet. now vacated, :dso thiU pact of (h~ Northw.::st Q\J.lU1~r of the
Soulhwe.:il Quarter OfScCliQn 11, Townsh.ip 121l':orth, lUnge 2S West
-bien lics ncnhcrly of rh~ I"lOtr1\~rty riJ:"h\-of-way Jine o(JntersC,.tc
Higbw.:JY H~...
Which Iin \l,i(hin rhe Ijn~ d..:scribed 4S follows:
COl'!Untncjnc at lh~ north'-""estedy comer of s..id Blcxk N. th~tlce on an
.usumed bC3ring of S<>ulh ilJ""8 (hit '''~t line: of said Block;;; M and N &.l1id
~$r hnC' i$' ~ho the east li"e ofth.e Nonhw~sl Quarter of m<; Sou{h'\llo~st
Quarler of said Sccrion ] f a di:itanc~ of 103 ,08 felill~ thence North 39
.arec~ H nlinutc;i l~ seconds East ~ di.:nanC:1II of91-67 feef to rhe point of
bcginTlin~ of the property to he- described: thence South 89 deg.r~es 34
minufei 14 se~(Jn(.h West 3 distance of296_67 fli:1:t; thc:bc:e westerly along
a CUtvot:: cvtlC3'\.'(: SOl.ltll"ri) having;;& radius of 550.00 r~~t llnd 3 ~entra1
anile of 20 dCSfCCS 20 millut~5 00 seconds 11 ,hord beating of South 19
degreo!:s:!~ nlinut..:~ 1..J s,;co.nds West and an arc lenGth of 195.19 feet;
thence ....'Cs'ccly 3101'lg il rc:\'~e curv-e' concave- northerly having a ndi\lS of
630.00 [.:C( and 3 cent",! iln~lc: ofB dlC:gtee:; J~ minutes 21 sec:ol'lCls a chord
bearing of Sourh 1'; delN:cs J I minutcs 55 second s West atld an arc length
01 9~"44 feet (0 the jnterttetion of;a line p.llraUc:l with :u\d 486,3) feet wesl
of SOlid COtSt Ii no: of tbe N'octhl,,"C$1 Qu~".:r of the Southwe~ Qua.;ter; .thence
01\ a bC;lrjne of Soulh .1lon~ s:lid par:dJct tin.; a dist3.r1cc of 584.56 feel 10
the nortlu~rly ri,bt~of~\"ay line of said IntcISt.'ltt Highway I~94; \h.~nc;e
South 80 dcsr~~s ] Z m.!11utes 15 seconds E"51 aJoni said 1'\ol1herly riSht-Qf. '
way a di$lan.:;~ of ~ gO,! J feet, thence e'nsloC'rJ}' along is tanl:el'ltiat CUNo;:.
eDDC<)"e lwnhcrly ;;.ajd cur"~ al'so br::iug 1':.\11 s;lid norwdy rigbr..of-,,-..ay
."d h.3vil'1J;.ll r:uHvs of 854.9J feG!. a cC'utr~ an~le of 11 dC'grees 24
minurc:i 22 .scl;vods. il cho((1 ....c3rinG of North 88 dC:6:I'c:'es :IS minutes 34
,.,QlJcClllltllrlltlan:sonlrJ 11
......-.. .A ~
~_ U.~. ;0::;0::.... LOtu~
~pr-.o<::/--""" _.
Apr-77-9a ]?:53P
Rea Ity
.
seconds ERst 3J'ld arc length u( )34.13 feet; tI1CI'lCe- North 77 degrce:) 2J
minutes 23 sC~DnJs East alOll& s:lid northerly tight.of-way a distance: of
46.85 fcct to the int.:rs,,"..:tion ofa line partJllet with and 69.00 feet e:lst of
the:: east line of!':;:"id }.'ol'lln..est QI.lQ.rt~r of the SO\,lth,,,'est QU;Jncr; ,hence::
on a 'be:>>rin, of t-:otth along sAid paraJlcllinc t\ distance of 157.64 feer;
thence W";$( It distance of 40.00 fee(~ then.::,= Nortb :l dist.iU1ce of} 8) S 1
feef re th", C'::I,t.::r line of Eighth $lfeet vi1catc:d; thenc-: North 64 de&:rec$ 11
minutes 4 g seconds ~lona s:aid centc:r line .iI diSlJ.nce of 32.14 f~c{ to Ihp.
center Jin~ of Lo'u\it Slrec-t vacaled: (hc::nce NO\1h 25 degrees 28 minutes
00 sc:c:ol,ds E~!:r :lIon, said eenltr line a disr;1nee of 111.33 feel to a tin.:
tha.t is parallel wil'" and 13.61 f<<l E"SI oCtbc West line o[gjd BJod;$ N
and M; rhc::n<::<:! t:orth alo1'lg said pat:dld I.nc .. disc;\nce 0(90,28 feet;
dtmc~ Etlst a Jbl:Jn'~ vf I a.oo ["':I::l; L1l~nce North 01 dislan..c uf6J ,$2 f~d
to the point ofbc.:ginning
.
_.....tp1lbb~.~)
J2
.
... - .I.";:>
BRA AGENDA
. JUNE 3, 1998
7. Consideration to authorize execution of the Contract for Private Redevelopment between
the lIRA and Allied Companies. LLC.
A. Reference and Backw-ound:
The City Council did approve the TIP Plan and District No, 1-23 on May 26. The
developer received a draft copy of the contract and had no problems with it. I made a few
corrections to the contract. The level of TIF assistance is an amount not to exceed
$181,000 for site improvements and land write-down. The HRA retains the first 200.10 of
the annual tax increment. Allied has two copies of the final document to be executed by
Mr. Van Heel. The citylHRA local contribution will apply to the sanitary, water, and
storm sewer trunk fees.
Allied Companies submitted a new proforma which is enclosed for your review.
Marquette Bank submitted a letter on behalf of Midwest Graphics. The proforma and the
letter are the findings for the "but for" test.
Allied Companies felt comfortable with the construction costs in the proforma. You will
note the change in equity and lender interest rate.
.
lIRA Greensweig requested the HRA authorize execution of the Contract.
B. Alternative Action:
1. A motion to authorize execution of the Contract for Private Redevelopment
between the lIRA and Allied Companies, LLC.
2. A motion denying authorization to execute the Contract.
3. A motion to table any action.
C. Recommendation:
Alternative No.1, contract is consistent with the HRA motion of May 6.
D. Supportini Data:
Proforma, letter from Marquette, and excerpt of the Contract.
.
1
ent by: ALLIED COMPANIES.LLC 612 428 8395
05/13/98 3:35PM Job 470
Page 1/1
;~fH~~;
.
.
.
~/lt!~~; 1;~Or~; 61~29~~~O~ :> AllIED COMPANIE~,llC; '2
MAY 12 Jg8 01:53PM CITY OF MONTICELLO
BUSINESS PROFORMA
from
ALLIED COMPANIES LLC
MAY 13, 1998
Date
Proposed square footage for lease 6 4 . 0 0 0
Proposed Tenant MIDWEST ~RA.PHTCS".
COST OF DEVELOPMENT:
~d acquisition
Construction Costs:
Building @ $ i 1 _ 7 2 per sq :fl ~ . n in. 08 0
Site improvements-Included 150.000
Architect Fees - Included 8,500
Permits - Included 1.000
L% construction contingency. I n c 1 2 0 . 00 0
Total Construction Costs
Construction Managemeot fees - 6 %
Financial OOn51:l\1ction interest
and fees
Legal fec:s
Project coJ1tingency
Rent-up contingency if appropriate
Other
TOTAL COST OF DEVELOPMENT
140,000
2 ()~() ()~()
.
Included
30,000
5,000
-0-
-0-
2,205.080
PROJECT FINANCING:
Equity
Moft3age amount 2,200.000 Interest rate 8 _ 85 Term 20 vear~
Annual pa.yment of mongage 2 3 4 . 98 6
Rent per square foot 4. 00 Triple Net Lcase~ yes.z.......... no_
Developers requited rate ofretum 13%
REQUIRED TIF ASSISTANCE OR GAP:
Munti.;.dl0 City "Hall, 250 E. Bl'OllOWll.)', PO B_ 1147, Monliooll
office oC Public WOJb, 909 Golf Cour~ Rd., Monticello
181,000
Post-it"' Fax Note 7671
To Cl II/./=;;-
Co./Depl.
pnonc _
Fa~ /I
P.2/3
PIlonH u-
fCl.'K: k
/./..) 5" - Llfl?
.
.
.
~ Marquette Bank
.. Monticello
May 20, 1998
Dear HRA Board Members:
I am writing you on behalf of Midwest Graphics, Inc. and Allied Companies, LLC regarding the proposed
new building in the Monticello Industrial Park. More specifically, their request for TIF financing and the
passing through of the TIF financing from Allied Properties, LLC. Upon review of the financial
information available, I believe the pay as you go TIF assistance will provide substantial added viability to
the success of their building project. Working Capital will be of paramount importance for Midwest
Graphics to continue to fund the current growth rate of the company. If this growth continues, the
company projects 37 in new jobs to the Monticello Community. The pay as you go TIF fmancing will
allow Midwest Graphic to conserve their working capital to fund the level of growth needed to ensure the
viability of the building project for years to come.
The need to preserve capital is also evident in the fact that Midwest Graphics is teaming with Allied
Properties to lease the building with the option to buy. The need to preserve working capital is so great
with Midwest Graphics, they are not currently able to put forth the required equity in order to finance the
building project themselves.
If I can be of any assistance in discussing this project, please feel free to contact me at your convenience at
271-6107. Thank you.
Sincerely,
w~
Chad A. Vitzthum
Assistant Vice President, Business Banking
Office of Marquette Bank, N.A.
106 Pine Street
Monticello, MN 55362
Phone (612) 295-2952
200 W. 6th Street
Monticello, MN 55362
Phone (612) 295-2952
Mailing address: P.O. Box 729, Monticello, MN 55362
.
ARTICLE III
12- x~e\>~ ~
er-\o ~a4-
Acquisition of ProDertv: Site ImDrovements;
Financial Assistance
Section 3.1. Status of the Development Propertv. As of the date of this Agreement, the
Developer has entered into a purchase agreement with a third party for the Development Property.
The Authority shall have no obligation to purchase the property or any portion thereof.
Section 3.2. Soil Conditions. The Developer acknowledges that the Authority makes no
representations or warranties as to the condition of the soils on the Development Property or its
fitness for construction of the Minimum Improvements or any other purpose for which the
Developer may make use of such property. The Developer further agrees that it will indemnify,
defend, and hold harmless the Authority and its governing body members, officers, and
employees, from any claims or actions arising out of the presence, if any, of hazardous wastes
or pollutants on the Development Property. The Developer's obligations under this Section 3.2
shall survive termination of this Agreement.
.
Section 3.3. Pavment of Administrative Costs. The Developer agrees that it will pay
upon demand by the Authority, Administrative Costs (as hereafter defined). For the purposes of
this Agreement, the term "Administrative Costs" means out-of-pocket costs incurred by the
Authority and attributable to or incurred in connection with the negotiation and preparation of
this Agreement and other documents and agreements in connection with the development
contemplated hereunder. Out-of-pocket Administrative Costs shall be evidenced by invoices,
statements, or other reasonable written evidence of the costs incurred by the Authority. As of
the date of this Agreement, the Developer has deposited $5,000 with the Authority to be applied
toward Administrative Costs. The amount by which this deposit exceeds the Authority's actual
Administrative Costs, ifany, shall, upon demand by the Developer, be returned to the Developer,
but no earlier than the date on which the Developer receives a Certificate of Completion pursuant
to Section 4.4 of this Agreement.
Section 3.4. Land Acquisition and Site Improvement. (a) In order to make development
of the Minimum Improvements economically feasible, the Authority will reimburse the
Developer, in the manner and amounts set forth herein, for: (i) up to $58,800 of the Land
Acquisition Costs, hereby defined as the Developer's cost of acquiring the Development Property;
and (ii) up to $122,200 of the Site Improvement Costs, hereby defined as the costs of
landscaping, soil correction, eligible exterior lighting, curb construction, and paving (the "Site
Improvements") designed to serve the Minimum Improvements. Any costs in excess of these
respective amounts shall be the responsibility of the Developer. The Authority shall have no
obligation to the Developer or to any third party with respect to any defects in the construction
of the Site Improvements or the Minimum Improvements.
.
(b) The Authority is authorized to acquire real property and convey such property to
private entities at a price determined by the Authority in order to facilitate development or
redevelopment of the Development Property. The Authority has determined that in order to make
development of the Minimum Improvements financially feasible, it is necessary to reduce the cost
DJG142690
MN190-72
7
~' ......
.",,\ , u"" r.,,,.. '..".. lt'l ., ,#
.. ~- I' T ....P "",. ;.. *" .-of
, ' .. -. ;"'" -.. t .tJ
,...,...'.... .... if ..' .".... . ..'. " t 1 .
,. ...". i ~ ;;r.. 'f!
..
.
.
.
.
.
.
.
of acquisition of the Development Property. The Authority has also determined that, in light of
potential environmental contamination of the Development Property and potential liability that
could be incurred by the Authority if the Authority takes title to the Development Property, it is
in the best interest of the Authority for the Developer to acquire the Development Property
directly from its current owner.
Section 3.5. Financing of Land Acquisition and Site Improvement Costs. In order to
make development of the Minimum Improvements economically feasible, the Authority will
reimburse the Developer for the Land Acquisition Costs and Site Improvement Costs in
accordance with the following terms and conditions:
(a) Subject to the terms and conditions of this Agreement, the Land Acquisition Costs
and Site Improvement Costs will be paid with simple interest thereon at 7.50% per annum,
interest commencing to accrue at the time the Developer becomes entitled to reimbursement of
such costs pursuant to this Agreement. The Land Acquisition Costs and Site Improvement Costs
will be paid by the Authority to the Developer in semi-annual installments payable on each
February I and August I ("Payment Dates") commencing August 1,2000 and concluding no later
than the Termination Date. These payments will be made from Available Tax Increment as
defined in this Section 3.3 and from no other source.
(b) The term "Available Tax Increment" means 80% of the Tax Increment with respect
to the Development Property as calculated by the County and paid to the Authority during the
six months preceding any Payment Date.
(c) If on any Payment Date there is available to the Authority insufficient Available
Tax Increment to pay the amounts due on such date, the amount of such deficiency shall be
deferred and shall be paid, without interest thereon, on the next Payment Date on which the
Authority has available to it Available Tax Increment in excess of the amount necessary to pay
the amount due on such Payment Date.
(d) The Authority shall have no obligation to pay any portion of the Land Acquisition
Costs or the Site Improvement Costs that remains unpaid after the Termination Date. The
Authority may prepay all or party of the Land Acquisition Costs or the Site Improvement Costs
at any time.
( e) The Authority shall not be obligated to make any payment under this Section if:
(i) there is an Event of Default on the Developer's part under this Agreement that has not been
cured; or (ii) the Developer has failed to comply with the payment procedures described herein.
(f) At least 30 days before becoming entitled to receive any payment hereunder, the
Developer must submit to the Authority a payment request certificate signed by its duly
authorized representative stating: (i) that the Developer has paid Land Acquisition Costs in at
least the amount of $58,800 and Site Improvement Costs in at least the amount of $122,200; (ii)
that no Event of Default has occurred and is continuing under this Agreement; and (iii) that the
Developer has received a Certificate of Completion pursuant to Section 4.4 of this Agreement.
The first payment request certificate must be accompanied by a certificate of a project engineer
DJG142690
MN190-72
8
.
.
or other project supervisor showing in adequate detail that the Site Improvement Costs have been
incurred and paid by the Developer.
(g) The Authority makes no warranties or representations that Available Tax Increment
will be sufficient to pay the Land Acquisition Costs or the Site Improvement Costs. The
Developer agrees and understands that Available Tax Increment is subject to calculation by the
County and change in State law, and that a significant portion of Land Acquisition Costs and Site
Improvement Costs may remain unpaid after the Termination Date. The Developer further agrees
and understands that TIF estimates provided by the Authority and its agents, officers, or
employees are estimates only and not intended for the Developer's reliance.
Section 3.7. Job and Wage Covenants. (a) By no later than two years after the first date
on which the Developer receives any tax increment payment under Article III hereof, the
Developer shall cause to be created on the Development Property at least 37 new jobs in
Minnesota, each such job to pay an hourly wage of at least $8.24, exclusive of benefits. The
Developer shall submit or cause to be submitted to the Authority a written report by April 1 of
each year during the term of this Agreement after completion of the Minimum Improvements
describing employment and salaries in sufficient detail to enable the Authority to determine
compliance with this section. If the Developer fails to comply with any of the terms of this
Section 3.7(a), the Developer shall repay to the Authority any payments made by the Authority
to the Developer pursuant to this Agreement. Nothing in this Section 3.7(a) limits any other
remedy available to the Authority under this Agreement or any other agreement between the
Authority and the Developer.
(b) At all times prior to the Termination Date, the Developer shall cause at least 90%
of the jobs at the Minimum Improvements to pay a rate equal to or greater than 160% of the
federal minimum wage for individuals over the age of 20. The Developer shall submit or cause
to be submitted to the Authority a written report by April 1 of each year during the term of this
Agreement after completion of the Minimum Improvements describing employment and salaries
in sufficient detail to enable the Authority to determine compliance with this section. If the
Developer fails to comply with any of the terms of this Section 3.7(b), the Developer shall repay
to the Authority any payments made by the Authority to the Developer pursuant to this
Agreement to the extent required by law. Nothing in this Section 3.7(b) limits any other remedy
available to the Authority under this Agreement or any other agreement between the Authority
and the Developer. .
Section 3.8. Use of Tax Increment. Except as set forth herein, the Authority shall have
no obligation to the Developer with regard to its use of Tax Increment and may use Tax
Increment for any lawful purposes, whether set forth herein or otherwise.
Section 3.9. Local Contribution. (a) As the local contribution required by subsection 24-
27 of the TIF Plan, the Authority shall pay, cause to be paid or forgiven by the City, or any
combination of the foregoing, up to $25,000 of the storm sewer trunk and sanitary sewer and
water trunk fees (the "Fees") that would otherwise be due to the City and borne by the Developer.
. (b) Upon any Event of Default (as defined in Section 9.1 of this Agreement) by the
Developer that results in a repayment by the Developer to the City of the assistance provided
DJG142690
MN190-72
9
.
.
.
hereunder, or an obligation by the Developer to make such repayment, the Developer shall, upon
demand by the Authority and only upon demand by the Authority, pay to the Authority (or the
City at the Authority's discretion), the full amount of the Fees for which the Developer would
have been responsible absent this Section 3.9. Nothing in this Section 3.9 shall be construed to
limit any other right or remedy to which the Authority is entitled under this Agreement or
otherwise.
DJG142690
MN190-72
10
.
.
.
ARTICLE IV
Construction of Minimum Improvements
Section 4.1. Construction of Improvements. The Developer agrees that it will construct
the Minimum Improvements on the Development Property in accordance with the approved
Construction Plans and at all times during the term of this Agreement, will operate and maintain,
preserve and keep the Minimum Improvements or cause such improvements to be maintained,
preserved and kept with the appurtenances and every part and parcel thereof, in good repair and
condition. The Authority shall not have any obligation to operate or maintain the Minimum
Improvements.
Section 4.2. Construction Plans. (a) Before commencement of construction of the
Minimum Improvements, the Developer shall submit to the Authority Construction Plans. The
Construction Plans shall provide for the construction of the Minimum Improvements and shall
be in conformity with the Redevelopment Plan, this Agreement, and all applicable State and local
laws and regulations. The Authority will approve the Construction Plans in writing if: (i) the
Construction Plans conform to the terms and conditions of this Agreement; (ii) the Construction
Plans conform to the goals and objectives of the Redevelopment Plan; (iii) the Construction Plans
conform to all applicable federal, state and local laws, ordinances, rules and regulations; (iv) the
Construction Plans are adequate to provide for construction of the Minimum Improvements; (v)
the Construction Plans do not provide for expenditures in excess of the funds available to the
Developer from all sources for construction of the Minimum Improvements; and (vi) no Event
of Default has occurred. Approval may be based upon a review by the City's Building Official
of the Construction Plans. No approval by the Authority shall relieve the Developer of the
obligation to comply with the terms of this Agreement or of the Redevelopment Plan, applicable
federal, state and local laws, ordinances, rules and regulations, or to construct the Minimum
Improvements in accordance therewith. No approval by the Authority shall constitute a waiver
of an Event of Default. If approval of the Construction Plans is requested by the Developer in
writing at the time of submission, such Construction Plans shall be deemed approved unless
rejected in writing by the Authority, in whole or in part. Such rejections shall set forth in detail
the reasons therefore, and shall be made within 10 days after the date of their receipt by the
Authority. If the Authority rejects any Construction Plans in whole or in part, the Developer
shall submit new or corrected Construction Plans within 10 days after written notification to the
Developer of the rejection. The provisions of this Section relating to approval, rejection and
resubmission of corrected Construction Plans shall continue to apply until the Construction Plans
have been approved by the Authority. The Authority's approval shall not be unreasonably
withheld. Said approval shall constitute a conclusive determination that the Construction Plans
(and the Minimum Improvements constructed in accordance with said plans) comply to the
Authority's satisfaction with the provisions of this Agreement relating thereto.
(b) If the Developer desires to make any material change in the Construction Plans
after their approval by the Authority, the Developer shall submit the proposed change to the
Authority for its approval. If the Construction Plans, as modified by the proposed change,
conform to the requirements of this Section 4.2 of this Agreement with respect to such previously
approved Construction Plans, the Authority shall approve the proposed change and notify the
DJG142690
MN190-72
11
.
Developer in writing of its approval. Such change in the Construction Plans shall, in any event,
be deemed approved by the Authority unless rejected, in whole or in part, by written notice by
the Authority to the Developer, setting forth in detail the reasons therefor. Such rejection shall
be made within ten (10) days after receipt of the notice of such change. The Authority's
approval of any such change in the Construction Plans will not be unreasonably withheld.
Section 4.3. Commencement and Completion of Construction. Subject to Unavoidable
Delays, the Developer shall commence construction of the Minimum Improvements by August
1, 1998. Subject to Unavoidable Delays, the Developer shall complete the construction of the
Minimum Improvements by December 31, 1998. All work with respect to the Minimum
Improvements to be constructed or provided by the Developer on the Development Property shall
be in conformity with the Construction Plans as submitted by the Developer and approved by the
Authority.
.
The Developer agrees for itself, its successors and assigns, and every successor in interest
to the Development Property, or any part thereof, that the Developer, and such successors and
assigns, shall promptly begin and diligently prosecute to completion the development of the
Development Property through the construction of the Minimum Improvements thereon, and that
such construction shall in any event be commenced and completed within the period specified
in this Section 4.3 of this Agreement. The obligation to construct the Minimum Improvements
in accordance with this Section touches and concerns the land, and shall run with the property
and be binding upon all successors and assigns to the Development Property. After the date of
this Agreement and until construction of the Minimum Improvements has been completed, the
Developer shall make reports, in such detail and at such times as may reasonably be requested
by the Authority, as to the actual progress of the Developer with respect to such construction.
Section 4.4. Certificate of Com9letion. (a) Promptly after completion of the Minimum
Improvements in accordance with those provisions of the Agreement relating solely to the
obligations of the Developer to construct the Minimum Improvements (including the dates for
beginning and completion thereof), the Authority will furnish the Developer with a Certificate
shown as Exhibit B. Such certification and such determination shall not constitute evidence of
compliance with or satisfaction of any obligation of the Developer to any Holder of a Mortgage,
or any insurer of a Mortgage, securing money loaned to finance the Minimum Improvements, or
any part thereof.
(b) If the Authority shall refuse or fail to provide any certification in accordance with
the provisions of this Section 4.4 of this Agreement, the Authority shall, within thirty (30) days
after written request by the Developer, provide the Developer with a written statement, indicating
in adequate detail in what respects the Developer has failed to complete the Minimum
Improvements in accordance with the provisions of the Agreement, or is otherwise in default, and
what measures or acts it will be necessary, in the opinion of the Authority, for the Developer to
take or perform in order to obtain such certification.
.
(c) The construction of the Minimum Improvements shall be deemed to be complete
upon issuance of a certificate of occupancy by the City for, and the opening for business of, the
Minimum Improvements.
DJG142690
MN19o-n
12
.
.
.
HRA AGENDA
JUNE 3, 1998
8. Consideration Qfinterest to acquire the property located at 613 Sixth Street West.
A. Reference and Background:
The HRA is requested to consider the property located at 613 Sixth Street West for
interest to acquire. Although the property does not lie within the boundary of
Redevelopment District No. 1-22, the property and its immediate adjacent parcels were
identified by previous commissioners as an area for redevelopment or for the scattered
housing program. More importantly, the City Council has earmarked a scattered housing
program as a high priority.
The property identified as PID# 155-010-009030 has a 1998 payable market value of
$28,100 (Land $15,000 and Building $13,100). The parcel consist of one lot, 10,890 sq
ft., legal description is Lot 3, Block 9.
The asking price is $39,900 per owner, 498-7710. The structure is a one-bedroom home
with basement and 10xlO shed. Improvements have been made to the home as the
property recently changed hands.
If the Council and BRA are serious about a scattered housing program, this is a good
place to start. Recognizing the BRA has limited available funds, the HRA may wish to
request up-front dollars for the parcel from the Council. Guidelines for a housing program
must be developed and parcels identified. Remember, a scattered housing program
consists of basically two programs: redevelopment - acquire, demolish, and resale and
rehabilitation - rehab older, solid structural homes. The purpose of a scattered housing
program is to increase the aesthetic value of the neighborhood. It is an investment to
preserve a safe community and to prevent increased costs such as police service. The
scattered housing program is a quality oflife issue for a city much like the goodwill issue
for a business. Although the program increases the tax base, the program or a project is
not necessarily intended to cash flow.
An example: Assuming the lIRA purchased the above property for $40,000 and
demolition costs were $3,000 and the HRA sold the raw land for $20,000. It would take
a new home with a land and building market value of$118,000 about 20 years before the
BRA would recover its cost of$23,000. This using the entire tax rate not just the city
portion.
B.
Alternative Action:
1.
A motion of interest to acquire the parcel requesting up-front dollars from the
Council and authorize an appraisal.
1
.
.
.
HRA AGENDA
JUNE 3, 1998
2. A motion of no interest to acquire the parcel.
3. A motion to table any action.
C. Recommendation:
As the Council is directing the HRA to implement a scattered housing program, this is a
great parcel to use as a starter. Recommendation is alternative no.!.
D. Supporting Data:
Map identifying parcel.
2
'"
...,,~
,
,
I
, \'
f
I
I
~ !
LO\ \~ 9 h
~\ot., i
I
, "
F:
........-------
~
- --P=z~
~ / "
.
BRA AGENDA
. JUNE 3, 1998
9. Consideration to review the first draft of the proposed TIF Guidelines.
At the May HRA meeting, the commissioners appointed Steve Andrews and Darrin Lahr
as a subcommittee to prepare a first draft of proposed TIF Guidelines for the
commissioners to review and discuss.
Knowing the busy schedule of the individuals, this item may be tabled to the July meeting.
.
.
1
.Y
f\CfJ
O'Y.
,
~})
.
.
. \, <-
\",,' \JV.e.s+ <;nel\~lA(v\c:... \r\b.\.AAe. M"'y30,IQQg
,BL housing project may
get more state funding
By Marcia Goosen
Staff Writer
In 1995, the Big Lake Economic
Development Authority (BLEDA)
commissioned Community Partners,
Inc. to evaluate the housing stock and
housing need of the city, develop a co.
ordinated strategy to improve the con-
dition of existing stock. and to promote
new housing opportunities for both
rental and owner occupied markets.
An observation had been made by
the members of BLEDA that there was
a noticeable disinvestment in the hous-
ing stock, both owner occupied and
rental housing. A significant portion of
Big Lake;'s housing stock was built pri-
or to 1950. These places were begin-
ning to show their age, and they needed
to be fIXed up or tom down.
The 1995 survey results reflected
those perceived conditions.
Out of the observation came the
1995 Big Lake Housing Strategy Plan.
A copy of this study is located at City
Hall.
The housing study looked at the
condition of both owner occupied hous-
ing and rental housing.
At the time of the sOJdy there were
1.110 single- family owner occupied
wellings in Big Lake. Of those, 192
(17%) were considered substandard and
32 (3%) were considered dilapidated.
Thirty-one (34%) of the rental build-
ing in town were in substandard condi-
tion, while 19 (21 %) of them were con-
sidered dilapidated.
With the help of Community Part-
ners, Inc.. BLEDA applied for grants to
the Minnesota Housing Finance Agen-
cy (MHFA) and to the Department of
Trade and Economic Development
(DTED). They were awarded $250,000
grant from MHFA, and have received
in excess of $400,000 from DTED.
The Acquisition and Demolition
Program was staned with a $250,000
grant from MHFA. The city had to con-
tribute $125,000 for a total of
$375,000, enough money to acquire 17
substandard pieces of property.
This money is used by BLEDA to
buy up substandard and dilapidated
housing, which they tear down, for reo
sale of the land to recoup pan of their
investment.
Some of the conditions for this pro-
gram are BLEDA cannot condemn
property, so they can demolish a sub-
standard or dilapidated dwelling, the
owner of the propeny must be willing
10 sell, and when BLEDA acquires the
property it must be vacant of any ten-
ants.
They have acquired or have pur-
STEVE MOORE Is the new Big
Lake city assistant administrator,
In chargo of housIng
Improvements and zoning Issues.
chase agreements on 10 units. Six mo-
bile homes have ben moved and they
have tom down three houses, resulting
in four lots. These can be resold at a
profiL
Beginning in November of 1996,
they have two years to complete the
project. Because they have done well in
administrating the program there is a.
chance for the city to apply for and reo
ceive more funds in 1999.
They still have enough money to ac-
quire seven more properties. If you are
interested in this program please call
City Hall at 263-2107.
In November of 1996, BLEDA re-
ceived a $431,000 grant from DTED.
This money was awarded for a Housing
Renovation Program. the idea being to
bring the house or rental unit up to
code.
The concern was with health and
safelY standards. Examples would be
installing smoke detectors, removal of
lead.bascd paint, having enough exits
in case of flte, etc.
There are two parts to the Commer-
cial Rental Inspection and Renovation
Loan Program. Steve Moore, assistant
city administrator will be handling the
rental housing inspection program.
The need for a rental inspection pro-
gram came out of the study by Commu-
nity Partners, Inc. Some rental unitS did
not meet health and safety standards.
All rental units will be inspected ev.
ery two years. A $65 fee is charged for
inspection, with a sliding scale for mul-
tiple unit inspections, and a certificate
of inspection is issued, after the unit
has passed the inspection.
Although the program began in
1997, they have not completed all in.
spections. The goal is to complete all
inspections in 1998.
Moore will call owners of rental
units-to set up a time when they can
complete the inspection.
If a property does not pass the in-
spection according to the ordinance, the
owners are given a work writeup that
explains what needs to be done, and a
time schedule to complete the renova-
tions in order 10 pass the inspection.
Then a follow up inspection is
scheduled after the work has been
done.
The Housing Renovation Loan Pr0-
gram is designed to help people who
don't have the money to fix up their
homes, but would like to bring their
house up to code.
There are eight cr nine projects on-
going right now.
This is an income-based program,
the income guidelines depend on how
many people live in the house or unil
If you receive renovation money, you
do not have to pay it back if you stay in
your home. If you sell your home with.
in a designated time period, you are re-
quired to pay back a portion of the
money you received.
The target area for this project has
been expanded to handle more of the
older areas of city and to both sides of
the lake.
Another benefit of this program is
that commercial rental housing can
qualify. As long as the tenants living in
the unit qualify under the income stan-
dards, and they are willing to have the
work done, a landlord can apply for
money.
If you are interested in this program,
call Steve Whitcomb at 263-2107. This
program will be in effect until late
1999, or until all the money has been
eannarked for use.
HRA AGENDA
. JUNE 3, 1998
10. Consideration to approve monthly lIRA bills.
The monthly bills appear to be in order. An approximate $2,000 final invoice was mailed
to Charlie Pfeffer on the Green Acres lobbying issue.
You will note the final invoice from Hoisington is included. The invoice will not be paid
until the MCP signs-off For your information, here is an account of the costs for
preparation of the Revitalization Plan for the Downtown and River. Contract was not-to-
exceed $80,650.
Expenditures
$20,293.00
$29,992.12
$15,338.15
$65,623.27
1996
1997
1998
TOTAL
.
.
1
.
Monticello HRA
PO Box 1147
Monticello MN 55362-9245
April 1 0, 1998
, ;~
...,~' ',,"
.~\ \'..
""
,,\\~~<)
\"'"' ..,
,-'
.
MC100-01
3/10/98 MTR
MTR
3/12/98 MTR
3/20/98 MTR
3/22/98 MTR
3/26/98 MTR
3/30/98 MTR
GENERAL
Talk to Ollie regarding tax increment for downtown
Tax increment projections for Little Mt. feed
Run for Diversafoam
Run for single family housing district
Discl,Jssions with Ollie regarding housing districts
Discussions with Mike Ayr & Steve B.
Run on Midwest Graphics - '"\ I:.~ - \ - J. '"3"
~\\~ '
Total Due This Month:
Previous Balance:
Total Balance Due:
~\<-(\
~
Hours Amount
0.25
0.75
0.50
0.50
0.50
0.75
3.25
26.25
78.75
52.50
0.00
52.50
52.50
78.75
$341.25
$105.00
-~-'-
, '
$446.25
.
PLEASE KEEP WHITE COpy FOR YOUR FILE AND REMIT PINK COPY WITH PA YMENT TO:
.
EHLERS & ASSOCIATES, INC.
3060 Centre Pointe Drive
Roseville, MN 55113-1105
(612) 697-8500
.
.
MC100-06
Monticello HRA
PO Box 1147
Monticello MN 55362-9245
April 1 0, 1998
Hours Amount
1.00 105.00
2.00 210.00
2.00 210.00
1.50 157.50
2.00 210.00
1.50 157.50
4.00 420.00
2.00 210.00
~--
16.00 $1,680.00
$1,680.00
2/6/98 RF Brad Barger re: new analysis needs
2/9/98 RF Update analysis
2/11/98 RF HRAlCC committee meeting
2/12/98 RF Update analysis
2/18/98 RF HRAlCC committee meeting
2/24/98 RF Analyze CitylTown financial issues
3/2/98 RF City Council meeting
RF Prepare for City Council meeting
.
Total Due This Month:
Total Balance Due:
PLEASE KEEP WHITE COpy FOR YOUR FILE AND REMIT PINK COpy WITH PA YMENT TO:
.
EHLERS & ASSOCIATES, INC.
3060 Centre Pointe Drive
Roseville, MN 55113-1105
(612) 697-8500
.
.
MC100-01
GENERAL
Monticello HRA
PO Box 1147
Monticello MN 55362-9245
~;;~)
4/6/98 MTR Discussions with Ollie regarding Amoco site
4/9/98 MTR Runs for Amoco site
\1\ ',,~..;- -j ::, ';,I.i!.Jo
';I,~~"~~ .).."..J w_O
Hours Amount
0.25
1.25
1,50
26.25
131.25
$157.50
$446.25
$603.75
.
Total Due This Month:
Previous Balance:
Total Balance Due:
PLEASE KEEP WHITE COpy FOR YOUR FILE AND REMIT PINK COpy WITH PA YMENT TO:
.
EHLERS & ASSOCIATES, INC.
3060 Centre Pointe Drive
Roseville, MN 55113-1105
(612) 697-8500
.
MC100-06 e
Previous Balance:
Total Balance Due:
.
Monticello HRA
PO Box 1147
Monticello MN 55362-9245
May 13,1998
. ,I', '''~\f'- .,~ .,-' .~.."~~ ~.J\}
1'.11 i\ ;,~ -
,,:1'\ --
Amount
$1,680.00
$1.680.00
PLEASE KEEP WHITE COPY FOR YOUR FILE AND REMIT PINK COpy WITH PA YMENT TO:
.
.
EHLERS & ASSOCIATES, INC.
3060 Centre Pointe Drive
Roseville, MN 55113-1105
(612) 697-8500
.
.
MC100-25
4/9/98 RC
4/14/98 RC
4/15/98 MTR
RC
RC
4/20/98 MTR
4/21/98 RC
RC
4/22/98 RC
4/23/98 RC
4/24/98 MTR
RC
4/27/98 MTR
4/28/98 MTR
Monticello HRA
PO Box 1147
~onticellO MN 55362-9245
, , ' May 13,199
~/ ~'\\~&
, l\';{
"\x'>
Drafting - Schedule. resolution calling for a public hearing and
distribution list
Draft TI F Plan
Work on tax increment plan
Drafting - Edit TIF plan and draft fiscal implication letters
County numbers
Discussions on District No, 1-23
Conversation with Ollie re: TIF Plan
Get numbers from County, PIN number and market values
Draft memo re: market values
Edit resolution calling for a hearing and plan per Steve's comments
Review plan and discussions on No_ 1-23
Edit Plan and fiscal implication letters and mail out
Review resolutions
Run with new original values
Total Due This Month:
,~
\ ';':-
.~
:s~~::):
Total Balance Due:
Hours Amount
1,50 157_50
1,50 157.50
2,00 210.00
1.00 105.00
0.50 52,50
0.50 52.50
0.25 26.25
0.75 78,75
0_50 52.50
1.25 131_25
1_00 105.00
2.50 262.50
0.50 52_50
0.50 52.50
--~~----
14.25 $1.496_25
-~..."..~".._---
$1,496.25
.
PLEASE KEEP WHITE COpy FOR YOUR FILE AND REMIT PINK COpy WITH PA YMENT TO:
.
EHLERS & ASSOCIATES, INC.
3060 Centre Pointe Drive
Roseville, MN 55113-1105
(612) 697.8500
.
KENNEDY & GRAVEN
Chartered
200 South Sixth Street, Suite 470
Minneapolis, MN 55402
(612) 337-9300
.,~
J.~~~ -S"~
'.': \-
\ ')
-.~""',\,
" -
CLIENT SUMMARY May 11, 1998
Monticello HRA
City Hall
P.O. Box 1147
Monticello, MN 55362
Through April 30, 1998
MNI95-00007: Purchase of225 West River Street
0-~-
<\ ';!C2 0-~~
$ 41.70
Services Rendered:
$
$
41.70
0.00
Disbursements:
Balance Due:
$
41.70
.
I d",3<1l'9, ':~X ",,/1::.0\, 0f ~8','J
It. t th;.o ac;;:t)unt, Cl8im or d"m~:f!<1
I J.r,d cor act and ttlal :10 po-ifl
o I ha5 .
.
.
.
KENNEDY & GRAVEN
\"0
\_'d-~
Chartered
200 South Sixth Street, Suite 470
Minneapolis, MN 55402
(612) 337-9300
May 11, 1998
~~s~
" '1,,,
~\~ >-
Monticello HRA
City Hall
P.O. Box 1147
Monticello, MN 55362
MN195-00007: Purchase of 225 West River Street ~
=~
\\~
Invoice # 23660
Through April 30, 1998
For All Legal Services As Follows:
04/13/98 CHT Review fax; phone call with 0 Koropchak. re deeds 0.30 41.70
Total Services: $ 41.70
Total Services And Disbursements: $ 41.70
.
KENNEDY & GRAVEN
Chartered
200 South Sixth Street, Suite 470
Minneapolis, MN 55402
(612) 337-9300
CLIENT SUMMARY May 11,1998
~,
~~.
(1;
~.
City of Monticello
Ollie Koropchak
City Hall
P.O. Box 1147
Monticello, MN 55362-9245
Through April 30, 1998
MN190-00066: Community Center Financing
MN190-00067: Mall Redevelopment '"\\=-- ~
..:,",'
't11Vvf\..~
\ -I-")-- ""?- ~~
MN190-00069: K-Mart Condemnation ,t.y \ -? '?- ~~ $
MNI90-00072: Economic Development TIF 1998 'f\ \\ \ e~ .\ -?- '3 $
Services Rendered: $
Disbursements: $
.
Balance Due: $
~ ,;Jr~.r~~~~'''''j. ,;,'G.):- ,..;.~"'1J!l'{ {ji '!H,,~
$
$
1,294.75
537.50
387.85
1,648.00
3,861.95
6.15
3,868.1 0
.
.
.
KENNEDY & GRAVEN
Chane red
200 South Sixth Street, Suite 470
Minneapolis, MN 55402
(612) 337-9300
May 11, 1998
City of Monticello
Ollie Koropchak
City Hall
P.O. Box 1147
Monticello, MN 55362-9245
MNI90-00069: K-Mart Condemnation
Invoice # 23657
C\.~~
~J'"
\.~
~~
\~d-~
~.~
<\Y ~ '
'f"\o;::o
Through April 30, 1998
For All Legal Services As Follows:
04/07/98 RJL Intraoffice conference re public purpose 0.30
04/07/98 SID Phone call with Brad Larson re K-Mart questions 1.00
and condemnation questions
04/08/98 CHT Phone call with S Bubul re condemnation; review 1.00
construction manager contract
04/08/98 SJB Phone call with B Milotte re RGAlcondemnation 0.50
questions; intraoffice conference with C Thomson
re same
Total Services:
For All Disbursements As Follows:
04/02/98
04/02/98
Photocopies
Postage
Total Disbursements:
Total Services And Disbursements:
43.20
134.00
139.00
67.00
$
383.20
$
3.00
1.65
4.65
$
387.85
.
.
.
KENNEDY & GRAVEN
Chartered
200 South Sixth Street, Suite 470
Minneapolis, MN 55402
(612) 337-9300
May 11, 1998
~
~
"~~ r- \; -
\ A--
'(f\cJ3\-
~~
City of Monticello
Ollie Koropchak
City Hall
P.O. Box 1147
Monticello, MN 55362-9245
MNI90-00067: Mall Redevelopment
. /) 0.-
\...... r
Invoice # 23655
Through April 30, 1998
For All Legal Services As Follows:
04/01/98 SID Phone call with B Larson; review Subordination 1.50
Agreement; letters to B Larson
04/02/98 SID Phone call with J Schmeckpeper re Subordination 0.75
Agreement; phone call with 0 Koropchak re same
04/03/98 SJB Phone call with J Cook re Subordination 0.75
Agreement; phone call with 0 Koropchak re same
04/06/98 SJB Phone call with J Cook and P Schmeckpeper and 0 0.80
Koropchak re Subordination Agreement; revise
same
04/07/98 SJB Phone call with Schmeckpeper re Subordination 0.20
Agreement status
201.00
100.50
100.50
107.20
26.80
Total Services:
$
536.00
For All Disbursements As Follows:
04/03/98
1.50
1.50
Fax
Total Disbursements:
$
Total Services And Disbursements:
$
537.50
.
.
.
City of Monticello
Ollie Koropchak
City Hall
P.O. Box 1147
Monticello, MN 55362-9245
KENNEDY & GRAVEN
Chartered
200 South Sixth Street, Suite 470
Minneapolis, MN 55402
(612) 337.9300
~~
-~,:>
.", ''''''~''''
"I'
t>\. "
_1
-;"7 "
A~~~
May 11, 1998
MN190-00066: Community Center Financing
Invoice # 23654
Through April 30, 1998
For All Legal Services As Follows:
04/09/98
04/22/98
04/22/98
04/29/98
DJO
BMB
DJO
DJO
Total Services:
Attend meeting re community center operations
Phone call with D Oreensweig
Draft operating agreement for armory/city hall
Draft operating agreement
Total Services And Disbursements:
1.80
0.25
8.40
1.80
$
$
189.00
34.75
882.00
189.00
1,294.75
1,294.75
.
.
.
KENNEDY & GRAVEN
Chartered
200 South Sixth Street, Suite 470
Minneapolis, MN 55402
(612) 337-9300
May 11, 1998
,,,ciQ
,\,')J
l\ <'L -
.~ >-
,\\1>' ~ "?
~\ \/~
\\ \ l \ ~ci,
City of Monticello
Ollie Koropchak
City Hall
P.O. Box 1147
Monticello, MN 55362-9245
MN 190-00072: Economic Development TIF 1998
Invoice # 23659
Through April 30, 1998
For All Legal Services As Follows:
04/23/98 SJB Review TIF Plan; phone call with 0 Koropchak re 1.25 167.50
same; memo to Ruff re "but for"
04/28/98 DJG Draft development contract 7.80 819.00
04/30/98 DJG Draft development contract 6.30 661.50
Total Services: $ 1,648.00
Total Services And Disbursements:
$
1,648.00
.
.
.
KENNEDY & GRAVEN
Chartered
200 South Sixth Street, Suite 470
Minneapolis, MN 55402
(612) 337-9300
~~:)
~~t\J
CLIENT SUMMARY May 18, 1998
City of Monticello
Ollie Koropchak
City Hall
P.O. Box 1147
Monticello, MN 55362-9245
Through April 30, 1998
MNI90-00068: Green Acres Legislation
$
2,710.37
Services Rendered:
$
$
420.00
2,290.37
Disbursements:
Balance Due:
$
2,710.37
.
.
.
KENNEDY & GRAVEN
Chartered
200 South Sixth Street, Suite 470
Minneapolis, MN 55402
(612) 337-9300
May 18, 1998
City of Monticello
Ollie Koropchak
City Hall
P.O. Box 1147
Monticello, MN 55362-9245
MN 1 90-00068: Green Acres Legislation
Invoice # 23656
Through April 30, 1998
For All Legal Services As Follows:
04/01/98 SJB Phone call with 1 Choi and 0 Koropchak re bill
revisions; memo to conference committee
04/03/98 SlB Phone call with R Long and 0 Koropchak re new
bill draft; review same
04/06/98 SJB Phone call with 0 Koropchak and 1 Choi re wage
levels
Total Services:
For All Disbursements As Follows:
04/01/98
04/15/98
Fax
lohn Choi Services Rendered
Total Disbursements:
Total Services And Disbursements:
2.00
0.50
1.00
$
$
$
240.00
60.00
120.00
420.00
7.50
2,282.87
2,290.37
2,710.37
.
.
.
--
~ \ "'& . l\ L:, ~ D \ , ~~ \ q q
11I11 Hoisington Koegler Group Inc.
ran 123 North Third Street. Suite 100
I!!J Minneapolis. MN 55401-1659
i\. .~,
.."'\ )00 \}
\\~
....').
"~,,.;,Q
'\~; -'
Ms. Ollie Koropchak
Monticello HRA
PO Box 1147
Monticello, MN 55362-9245
M f;~. '1 8 19~~
\.\t"",l< 1
(\~Jl- I '
~ t.
&,\f
INVOICE
May 7, 1998
Project #96-21
Attention: Ollie Koropchak, Executive Director
For Professional Planning Services Authorized for preparation of Downtown and Riverfront
Revitalization Plan for February 1 through April 30, 1998 as follows:
Completion of task six and submittal of final plan and appendix (project complete).
BILLING
Principal 118.00 hrs @ $78 $ 9,204.00
Expenses: repro/copies/prints $ 633.75
Ehlers & Associates (copy attached) $ 3,780.00
Suzanne Worthley (copy attached) $ 1,120.00
Maxfield and Associates $ 600.40
TOTAL April 30 Billing $ 15,338.15
Ehlers and Associates, Inc.
LEADERS IN PUBLIC FINANCE
March 31, 1997
IN ACCOUNT WITH
CITY OF MONTICELLO (HKG)
Michael Schroeder
Hoisington Koegler Group, Inc.
7300 Metro Blvd., #525
Minneapolis, MN 55439
For all services performed relating to the Downtown Development Guide for the City of Monticello, Minnesota,
from January 1, 1997 through March 31, 1997.
.
~..
Meetings
City update (112)
Workshop
Meeting on Armory (2125)
Presentation of draft plan (3/12)
Michael Schroeder (3/19)
Preparation for 1/8 workshop
Drafting of finance sections of Plan
General administration/miscellaneous
4.00 hours @ $120ihr.
4.00 hours @ $120/hr.
4.00 hours@ $120/hr.
4.00 hours @ $120/hr.
1.00 hour @ $120Ihr.
6.00 hours @ $120/hr.
8.00 hours @ $120/hr.
0.50 hours @ $120/hr.
$ 480.00
480.0~~,
480.011W""..vrrv".........-.. ..,,--,-...."
480.00
120.00
720.00
960.00
60.00
$3,780.00
Due for Services
We declare that the above claim is correct and that no part thereof has been paid.
.
OFFICES IN MINNEAPOLIS, MN AND BROOKFIELD, WI
2950 Norwest Center. 90 South Seventh Street. Minneapolis. MN 55402-4100
Telephone 612-339-8291. FAX 612-339-0854
.
.
.
Suzanne Worthley
1961 Birch Lake Avenue · White Bear Lake, MN 55110 · 612-429-3677
INVOICE
HOURS SPENT ON MONTICELLO PROJECT
to be billed at $80lhour
includes travel time
....
B ?" \Q.C\.l.o
~..l -
~~o'..).. 11_ n
&:. _ ~ u.....X..SL.(.Y
March 26, 1996
2 Hours Meeting at Michael Schroeders
1 - 3 P.M.
May 15, 1996
3.5 Hours Meeting with Michael Schroeder and Promotional
3 - 6:30 P.M. Group
June 4, 1996
3.5 Hours Bus Tour w / team
8:30 A.M. - Noon
June 13, 1996
Visioning Session at High School w Iteam &
community
3 Hours
6:30 - 9:30
October 22, 1996 2 Hours
12:30 - 2:30
Meeting at Michael Schroeders
Total Hours: 14 @ $80.00/hour
TOTAL AMOUNT DUE
$1,120.00
Please remit to the name and address above, thank you.
lIRA AGENDA
. JUNE 3, 1998
.
.
12.
Executive Director's Report:
a) DiversiFoam Products - Enclosed is a copy of the letter written to DiversiFoam
following the HRA action in May. A copy of the letter was given to IDC
members. No one had any adverse comments to the HRA action.
b) Golf Outing. Invitations were mailed to 22 site locators and 20 BRE developers.
The days agenda is outlined in the letter. My assumption is BRA members will
participate in the full.day event and their expense taken from the marketing budget
since the lIRA elects not to be compensated for regular HRA meetings. Mayor
Fair will host the day, will not golf; however, he will join Kitty and myself on the
beer wagon. The latest information relating to waste water treatment capacity,
school enrollments, etc. and the planned bus route is in the making. The bus must
depart the Monte Club at 12: 15 p.m. in order to be on time for the golf outing. At
this time, positive RSVP -.l!:L and negative RSVP 3-.
c) West Broadway HRA lot - Rita illrich continues to work with John Simola, Public
Works Director, relating to the purchase of concrete tables and chairs. Handicap
accessibility is important. It is my understanding the pool manufacturer will be
constructing the deck for Skipper's Pool and Spa.
d) 1999 Budget - With the city budget planning to begin in July and reviewing the
City priorities for 1999, the lIRA needs to identify HRA projects or priorities to
determine the need for funding within the City Budget. The HRA has the power
to levy independent of the City levy. Using the maximum HRA levy, about
$50,000 to $60,000 of revenue is generated annually.
e. \\...........""0.-
""\ I> \)..1'
?-t
\.. u... ~ ~
~\
c.~
~I"\
"
..
-
)
...~
May 12, 1998
MONTICELLO
Mr. Benjamin G. Sachs
DiversiFoam Products
9091 County Road 50
Rockford, MN 55373
Dear Mr. Sachs:
The City of Monticello appreciates the time officials ofDiversiFoam Products spent with representatives of our
prospecting team. DiversiFoam and its employees were most gracious. Our representatives found DiversiFoam to be
well-managed and a growth company. Enclosed is an update on decisions relating to the land use amendment and use
of Tax Increment Financing.
The Planning Commission and the City Council both approved the Comprehensive Plan Amendment for the south and
west corridor on May 5 and May 11, respectively. Option II, the city-owned parcel, along Trunk Highway 25 wa..'l
zoned commercial (not industrial) and Option III, the most westerly parcel, along West Oakwood Drive was zoned
industrial.
.
After much consideration and discussion by the various commission members, the decision of the Housing and
Redevelopment Authority (HRA) was to provide no TIF assistance or free land to DiversiFoam for development. The
commissioners saw the proposed DiversiFoam expansion project for development in Monticello as a satellite site to the
Rockford site which employs the company's top management personnel. Therefore, the proposed facility in Monticello
would create few or no mana~ement jobs or wages. Additionally, the commissioners had concerns with the excess
amount of proposed outdoor storage and the longevity value of the proposed metal exterior building.
Should you have any questions regarding the commissioner's decision, please do not hesitate to call me at 271-3208.
Again, the City of Monticello thanks you for your time and wishes DiversiFoam Products much success.
Sincerely,
CITY OF MONTICELLO
~~ ~Q")~ ~J)~~__
Ollie Koropchak
Economic Development Director
co: Mayor Bill Fair
Industrial Development Committee
File V'"
.
Monticello City Hall, 250 E. Broadway, PO Box 1147, Monticello, MN 55362-9245 . (612) 295-2711 . Fax: (612) 295-4404
Office of Public Works, 909 Golf Course Rd.. Monticello, MN 55362 . (612) 295-3170 . Fax: (612) 271-3272
GOLF OUTING POTENTIAL LIST
. ONE INVITE
Lenders - Marquette Bank - Kevin Doty
US Bank
Norwest Bank
First National of Elk River - Bill Endres
Firstar Bank
Liberty Bank - Brad Becker
.
Mark Ruff - Ehlers
Steve Bubul - Kennedy & Graven
Lenny Kirsch - Public Resource Group
Paul Ederer - Allied Companies
Shawn Weinand
John Chadwick
Gae Viet - Shingobee
Duane Schultz - Winkelman Construction
Vaughn Veit - Veit Companies
John Gries - Attorney
Merrill Busch - Busch & Partners
Charlie Pfeffer - Pfeffer Companies
Brad Larson - Attorney
Brad Johnson - Lotus Realty Services
TWO INVITES
Welsch Companies
United Properties
Frauenshuh
Towle
GarfIeld
Ryan
Brookfield
Opus
Dunbar
Griffin Companies
.
May 13, 1998
MONTICELLO
_ffll~name~ .;,
r.~~~:~trY),
Umt6JJJ'Cit ~.
.:....':.:::...:::.;:':.;\ Yj.
Dear 1~1.~First Name):
Of course you know the City of Monticello has a 65,000 square foot Cub Store under construction and a $9.4
million community center planned? Yes, things are happening in Monticello and you're invited to see and
hear more.
In appreciation of your past development efforts in the city of Monticello, Mayor Bill Fair invites you to a
fun-filled day including a gratis-round of golf at the Monticello Country Club sponsored by the Monticello
Area Chamber of Commerce. Prior to golfing, the Mayor will host an enlightening bus tour of the city
including a light lunch. Hear about Monticello's vision for the future and opportunities for development.
Then, off to the golf course for 18-holes of golf with city officials and staff and members ofthe business
. community.
Here's the schedule:
10:00 a.m.
1J:15 a.m.
1:00p.m.
Wednesday, June 10, 1998
Bus Tour hosted by Mayor Bill Fair leaves City Hall, 250 East Broadway.
Lunch - Monte Club, 8932 Fenning Avenue (County Road 118).
Shotgun Start - Monticello Country Club, 1209 Gol/Course Road (W.County Rd 39).
Here's all you have to do. Call Sandy or Karen at City Hall, (612) 295-2711, and make your reservation.
Golf reservation deadline is May 29. Join us for the full-day event or part of the day. Your business is
entitled to one gratis-ticket.
See you the 10th of June!
With warm regards,
CITY OF MONTICELLO
Ollie Koropchak
.Economic Development Director
Monticello City Hall, 250 E. Broadway, PO Box 1147, Monticello, MN 55362-9245' (612) 295-2711' Fax: (612) 295-4404
Officc of Public Works, 909 Golf Course Rd., Monticello, MN 55362 . (612) 295-3170' Fax: (612) 271-3272
May 13, 1998
MONTICELLO
Em'.':'.'.'...'..:'.um'.'..::;:-':.."'(....N. ame}"'"
. ..... ',' " "
. ...... .
.. -- -. ,
. .
.~;rYI
~:V:"::\!:!Iii'(Cl'ty)"
I8:t:&U.l$if! .: :' :
....::...........................':'.: ...:
Dear 11.~First N ame~:
Did you know the City of Monticello has a 65,000 square foot Cub Store under construction and a $9.4
million community center planned'! Yes, things are happening in Monticello and you're invited to see and
hear more.
Join Mayor Bill Fair on a fun-filled day or join him for part of the day. The City of Monticello cordially
invites you to a gratis-round of golf at the Monticello Country Club sponsored by the Monticello Area
Chamber of Commerce. Prior to golfmg, the Mayor will host an enlightening bus tour of the city including a
light lunch. Hear about Monticello's vision for the future and opportunities for development. Then, off to
the golf course for 18-holes of golf with city officials and staff and members of the business community.
.Here's the schedule:
10:00 a.m.
11:15 a.m.
I :00 p.m.
Wednesday, June 10, 1998
Bus Tour hosted by Mayor Bill Fair leaves City Hall, 250 East Broadway.
Lunch - Monte Club, 8932 Fenning Avenue (County Road 118).
Shotgun Start - Monticello Country Club, 1209 Golf Course Road (West County Road
39).
Here's all you have to do. Call Sandy or Karen at City Hall, (612) 295-2711, and make your reservation.
Golf reservation deadline is May 29. Your business is entitled to two gratis-tickets.
See you the 10th of June! Follow 1-94 or Trunk Highway 25 to Monticello.
With warm regards,
CITY OF MONTICELLO
Ollie Koropchak
Economic Development Director
.
Monticello City Hall, 250 E. Broadway, PO Box 1147, Monticello, MN 55362-9245' (612) 295-2711' Fax: (612) 295-4404
Office of Public Works, 909 Golf Course Rd., Monticello, MN 55362' (612) 295-3170' Fax: (612) 271-3272
~~,~
-c'?- ~ ? '?O
~ ~f'}
~
L eo~ \
\..... &'"
\?\()~o-
,', .
, 't
,
.~- ,', "
. .
,
.... '.
.......
". r
\.:
,
~ t t
-.:-~
.... I
-._~ _.""rl"....'l--- --..,___.
.'\
~ ....,
. I'
., ,
. .
I
,.
.
.
.
4.11
_ .... W II'
C\\,<," t.
-'" \,) (.0 O-e !"
~'" \ ..'
..n;, 'fJ ".~O .~7d.
If '$' \,0 _\
\. 'b 0 ,t OO~~
., q," \ ~
Y 0'"
~ ~\\t.O f'
\ ". '(Q
A,.C\1 .?~ \.~
-7 ~ 01.
0. ",;~; ~..!f "
'~J ~~~
~~ ~
," 0 to.. '\
j~ ,) oX Gz. :-.~~
...
<? I~Q_\9 b
~ \ \ 14y.))l
, "
.
"'" U") .... .
'-, (\J.'~ ..
>- ->-- .
.. 't
S-
:.f
.