HRA Agenda 07-01-1998
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AGENDA
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, July 1, 1998 - 7:00 p.m.
City Hall
MEMBERS: Chair Steve Andrews, Vice Chair Bob Murray, Brad Barger, Darrin Lahr, and Dan
Frie.
COUNCIL LIAISON:
Brian Stumpf
ST AFF:
Treasurer Rick Wolfsteller and Executive Director Ollie Koropchak.
GUESTS:
Larry Schlief
1. CALL TO ORDER.
2. CONSIDERATION TO APPROVE THE JANUARY 7, MAY 6, AND JUNE 3, 1998
HRA MINUTES.
3. CONSIDERATION OF ADDING AGENDA ITEMS.
4.
CONSIDERATION OF A REQUEST FOR A BUYOUT RATHER THAN CONTRACT
FOR DEED.
5. CONSIDERATION TO APPROVE A RESOLUTION AUTHORIZING AWARDING
THE SALE OF, AND PROVIDING THE FORM, TERMS, COVENENTS AND
DIRECTIONS FOR THE ISSUANCE OF ITS $500,000 TAXABLE TAX
INCREMENT REVENUE NOTE, SERIES 1998.
6. CONSIDERATION TO APPROVE GENERAL GUIDELINES AND LEVEL OF TIP
ASSISTANCE FOR PROJECT NO. II WITH REDEVELOPMENT DISTRICT NO. 1-
22.
7. CONSIDERATION OF A COUNTEROFFER FOR THE PROPERTY LOCATED AT
225 FRONT STREET.
8. CONSIDERATION TO REVIEW THE FIRST DRAFT OF THE PROPOSED TIF
GUIDELINES.
9. CONSIDERATION TO MONTHLY HRA BILLS.
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HRA AGENDA
JULY 1, 1998
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10. CONSIDERATION OF SUBCOMMITTEE REPORTS:
a) Marketing - Darrin Lahr
b) Community Center - Bob Murray
c) MCP - Steve Andrews
d) Summarize Bus Tour/Golf Outing - Dan Frie.
11. CONSIDERATION OF EXECUTIVE DIRECTOR'S REPORT.
12. OTHER BUSINESS.
13. ADJOURNMENT.
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MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, May 6,1998 -7:00 p.m.
City Hall
MEMBERS PRESENT:
Chair Steve Andrews, Vice Chair Bob Murray, Damn Lahr, and
Dan Frie.
MEMBERS ABSENT:
Brad Barger.
COUNCIL LIAISON ABSENT:
Brian Stumpf
STAFF PRESENT: Executive Director Ollie Koropchak.
GUESTS:
Amy Rolfe, Skipper's Pool & Spa
Barb Esse, MCP Chairperson
Rita Ulrich, MCP Manager
1. Call to Order
Chair Andrews called the HRA meeting to order at 7:00 p.m.
2.
Consideration to approve the JanuRIy 7, 1998. April 1, 1998. and ^-prit1S. 1998 HRA
minutes.
Darrin Lahr made a motion to approve the April 1, 1998 and April1S, 1998 HRA
minutes. Dan Frie seconded the motion and with no corrections or additions, the minutes
were approved as written.
3. Consideration of adding items to the a.genda.
Koropchak requested an addition under 13b Other Business: Consideration to modify the
Redevelopment Contract between HRA and BBF Properties.
4. Consideration to approve a resolution adoptin~ the modified plan for Central Monticello
Redevelopment Project NO.1 and establishment and adoption of the plan for TIF District
No. 1-23.
HRA members received a copy of the Plan for TIF District No. 1-23. They noted the
budget of$I,105,OOO and estimated annual net tax increment of$121,542 were high.
The stated budget allows for increased project costs without the need to modify the Plan
responded Koropchak. And the stated tax increment is based on a greater per square foot
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HRA MINUTES
MAY 6, 1998
value of the land and building because the financial consultant believes the County
Assessor's value are low and values will increase shortly. Koropchak noted the developer,
Allied Companies, and tenant, Midwest Graphics, will provide documentation to satisfy
the "but for" test. TIF District No. 1-23 is an Economic District with a maximum life of
eleven years. The district will create jobs and increase the tax base of the state and local
community. The tenant agrees to wage levels between $8.24 to $12.00 ph and agrees to
pay a wage level of at least 160% of the federal minimum wage requirement for at least
90% of its employees during the life of district.
The Planning Commission approved a resolution finding the TIF Plan to be consistent with
the Comprehensive Plan ofthe City.
Dan Frie made a motion to approve a resolution adopting the modification to the
Redevelopment Plan for Central Monticello Redevelopment Project No.1; and
establishing TIF District No. 1-23 therein and adopting the related TIF Plan therefor. The
motion was seconded by Bob Murray and with no further discussion, the motion passed
unanimously.
5.
Consideration to approve the terms and conditions of the Contract for Private
Redevelopment between the lIRA and Allied Companie&. LLC.
Koropchak reviewed the proforma submitted by the developers which required TIF
assistance in the amount of $250,000, stating the request appeared high when calculating
the numbers. The contractor submitted site improvement costs of$122,211 and the
developer requested land acquisition assistance. The construction cost estimate of$32.72
per sq ft on the proforma appeared low as the Assessor's value on the manufacturing
portion only is about $27.50 per sq ft. Additionally, the permit fee is listed at $1,000.
Koropchak was unable to reach Paul Ederer for an explanation.
Based on the TIF cash flow projections, 50% of the tax increment over the life of the
district is about $181,000 NPV. Koropchak suggested the storm sewer trunk and sanitary
sewer and water trunk fees of about $25,000 be earmarked as the 10% local contribution.
Darrin Lahr made a motion agreeing to TIF assistance in an amount of $125,000 for site
improvements and $56,000 for land write-down subject to verification of construction
costs or satisfaction of the "but for" test. The lIRA to retain the $5,000 pre- TIF deposit
and receive the first 20% of the annual tax increment. The developer to receive the
remaining annual tax increment for not-to-exceed total TIF assistance of$181,000. Dan
Frie seconded the motion and with no further discussion, the motion passed unanimously.
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HRA MINUTES
MAY 6, 1998
6. Consideration ofa request from the MCP relating to the use of the HRA lot on West
Broadway
MCP President Barb Esse and Manager Rita illrich appeared before the HRA with a
proposed use of the vacant HRA lot at 111 West Broadway. The lot adjoins the office of
the MCP which is convenience for light maintenance of the property by the MCP. To
create an attractive and inviting public space, the MCP proposed the front 50 feet be used
as a gathering place and walkway via the purchase and placement of four picnic tables
with umbrellas, two park benches, fencing, plantings and miscellaneous at an estimated
cost of $3,804.40. This meets the pedestrian friendly spirit of the revitalization plan.
Secondly, they proposed that the remaining portion of the lot be used by Skipper's Pool
and Spa as a display area allowing room for the walkway. This to encourage business
expansion and revitalization of downtown and to eliminate the need for a conditional use
permit relating to expansion of a display area on the existing parcel.
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Koropchak reported if an HRA receives income from a property it no longer is tax
exempt. Attorney Bubul recommended a lease agreement be drafted, executed, and
recorded and would necessitate the HRA to hold a public hearing. Koropchak noted in
conversation with the County Assessor if the use is for a limited time perhaps the property
could be considered seasonal and not taxed. Commissioners discussed options which
would result in a good solution for all concerned. The commissioners agreed their goal as
owner of this parcel was to provide the HRA with the opportunity to monitor future plans
for redevelopment of the area.
Steve Andrews made a motion approving expenditures in an amount not-to-exceed
$3,804.40 for the MCP to purchase aesthetic improvement fixtures for the southerly one-
half of the HRA lot at 111 West Broadway. This to test-the-water for use ofa public
gathering place concept. Darrin Lahr seconded the motion and with no further discussion,
the motion passed unanimously. The motion was subject to a maintenance agreement
letter from the MCP.
Dan Frie made a motion allowing Skipper's Pool and Spa, Scott Rolfe, the use of the
northerly one-half of Lot 7 and a portion of Lot 8, Block 52, Original Plat, except the area
designated as walkway, through a period ending August 1998 with the following
conditions: Skipper's Pool and Spa must indemnify the lIRA, use must be for display
purposes only, and the use must be consistent with the conditional use permit. The
motion was seconded by Steve Andrews and with no further discussion, the motion passed
unanimously. The commissioners approved the motion because Skipper's Pool and Spa is
adjacent to the unused described parcel, is consistent with the conditional use permit and
will assist a new business.
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HRA MINUTES
MAY 6, 1998
7. Consideration of interest to provide TIF assistance to Diversifoam Products.
HRA members were asked of their interest to provide TIF assistance to Diversifoam
Products. The Prospect Team and some HRA members visited the headquarter facility in
Rockford, MN, on two different occasions. Both groups saw the company as productive
and well managed but gave the proposed project a lukewarm rating. The company
requested a reasonably-timed response.
Lahr had no problems with the air emissions; however, he felt the proposed project
included no skilled jobs and a steel building utilizing a large amount ofland for outdoor
storage. He was not interested in providing TIF. Frie agreed no free land. Murray did
not have enough information for a decision: however, did recognize the project was a
satellite facility with no skilled jobs. Darrin Lahr made a motion to provide no TIF
assistance to Diversifoam because the project did not meet the TIF criteria. Steve
Andrews was uncomfortable with the rationale for denial. Lahr amended his motion: to
provide no TIF assistance to Diversifoam because the proposed satellite project included
no top management jobs, an excess amount of outside storage, and a building exterior of
lesser long term value. Steve Andrews seconded the motion and with no further
discussion, the motion passed unanimously.
8.
Consideration to hear follow-up on the difference between the assessed value and certified
real estate value for TIF District No. 1-18.
Administrator W olfsteller researched each file card at the County Assessor's Office and
found each single family resident and twin home had a typical EMV increase from payable
1998 to payable 1999 with the exception of one twin home unit which increased from
$96,500 to $194,600. This property was only 50% complete on January 2, 1997.
Previously, Bob Murray requested the HRA consider modifying the Contract for Private
Redevelopment between the HRA and RDI to use the certificate ofrea1 estate value
instead of the assessor's value. With the reported update on the estimated market values,
Murray withdrew his request.
9. Consideration of interest to purchase the property located at 516 Maple Street.
At the request of the Assistant Administrator, the HRA was requested to consider
purchase of the property located at 516 Maple Street. The parcel lies within the proposed
redevelopment area of the community center. Although the parcel lies within the area, the
parcel is not needed in order to proceed with Phase I of the community center but would
be necessary for Phase IT which includes the ice arena.
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BRA MINUTES
MAY 6, 1998
Lahr asked: Why do we need it? The ice arena is far-out. Andrews asked if the HRA
could cashtlow the purchase? Darrin Lahr made a motion stating the HRA was not
interested in purchasing the property at 516 Maple Street as this time because of the
HRA's lack offunds and recommended the City Council consider the acquisition. Steve
Andrews seconded the motion and with no further discussion, the motion passed
unanimously.
10. Consideration to review the list of site locators. builders. and others for invite to golf
outing and other related plans.
Koropchak reported the lower list of businesses were taken the membership of the
National Association of Industrial and Office Properties. Murray saw no purpose to invite
builders but to invite developers only. The upper list consist of local lenders and existing
BRE contacts. Frie made a motion to invite the bottom left-hand businesses with two
gratis tickets and the upper list of individuals or businesses with one gratis ticket. Bob
Murray seconded the motion and with no further discussion, the motion passed
unanimously. The golf course can fit 120 golfers reported Frie.
11.
Consideration to review and discuss TIF policies from the City of Sav"ie and appoint two
commissioners to pr(;(pare a draft copy of TIF Policies for review
In lieu of saving time, Darrin Lahr made a motion appointing Commissioners Andrews and
Lahr to a subcommittee for the purpose of preparing a draft copy of TIF Policies for
review at the June HRA meeting. Dan Frie seconded the motion and with no further
discussion, the motion passed unanimously.
12. Consideration to authorize payment of monthly HRA bills.
Bob Murray made a motion authorizing payment of the monthly HRA bills and
authorizing submittal of invoices to Charlie Pfeffer and the amount due of$I,825.66 as
reimbursement to the BRA for services rendered relating to the Green Acres issue. The
HRA paid $1,500 of the total $3,325.66 expenditure through the April 7, 1998 invoice.
Darrin Lahr seconded the motion and with no further discussion, the motion passed
unanimously.
13.
Consideration of Executive Director's r(;(port:
b) Add on item - HRA members were requested to consider modifying the Contract
for Private Redevelopment between the HRA and BBF Properties, Inc. The
contract states the redeveloper shall commence construction of the minimum
improvements by May 1, 1998. The request is to modifY the construction
commencement date from May 1 to June 1, 1998 for compliance of the contract.
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BRA MINUTES
MAY 6, 1998
Most important to the HRA is the scheduled construction completion date of
December 31, 1998. Darrin Lahr made a motion to modify the commence
construction date for the minimum improvements from May 1, 1998 to June 1,
1998 within the Contract between the HRA and BBF Properties, Inc. Bob Murray
seconded the motion and with no further discussion, the motion passed
unanimously.
lIRA members accepted the report as written.
14.
Consideration of committee reports:
a) Small Group Community Center - Murray reported the Chamber requested space
in the community center for their office and related conference needs. No rental
fees have been determined. The National Guard's $1.5 million has a new twist
with the need for a secured space for their humbies. Construction costs will be
reviewed at the next meeting which are assumed higher than originally projected.
b) MCP - Andrews no report as absent from meetings.
c) Marketing - Lahr reported the subcommittee continues to meet and all agree to
print a marketing piece with no implementation plan or sufficient staff is not the
goal.
d) Golf Outing - Frie reported perhaps the Legion would supply a free lunch. Lahr
asked if that was the image of Monticello, the BRA wanted to market? It was
suggested to check with the Monti Club and River Inn on menu and costs?
15. Other Business.
Murray stated he would be out-of-town.
16. Alljoumment.
The BRA meeting adjourned at 9:30 p.m.
BRA Chair
Executive Director
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MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, June 3,1998 - 7:00 p.m.
City HaD
MEMBERS PRESENT:
Chair Steve Andrews, Vice Chair Bob Murray, Brad Barger, Darrin
Lahr, and Dan Frie.
COUNCIL LIAISON PRESENT: Brian Stumpf
STAFF PRESENT: Rick Wolf steller and Ollie Koropchak.
1. Call to order.
Chair Andrews called the BRA meeting to order at 7:00 p.m.
2. Consideration to approve the Janu3l)' 7 and May 6. 1998 HRA minutes.
Tabled.
3.
Consideration of addinl: al:enda items.
Two items were added under other business: Business card for commissioners and
potential industrial project.
4.
Consideration to approve general &uidelines and level of TIF assistance for project II
within Redevelopment District No. 1-22.
Greg Hayes, Shingobee, Inc., reiterated the need for up-front TIF assistance in the amount
of $150,000 for the acquisition and demolition of the Amoco station for construction ofa
8,000 sq ft 2-story quality office building. Hayes informed HR.A members that Shingobee
has an annual gap of$21,525 for 15 years for a net loss of $322,000 and are requesting
TIF assistance in the amount of less than ~ the net loss. The proforma includes a six
month lease up with rental at $15 per sq ft TNL. Depreciation on the mortgage does help
to reduce the gap. The current owner of the site guarantees a clean site. The site was
earmarked initially by staff members as an area for redevelopment. The site is unused,
non-conforming, and blighted and would be replaced with a quality bookend project for
the West Broadway downtown area. Hayes said no one was pursuing the site and
estimated the demand and increase in valuations were perhaps five years after
development of the Cub site. Koropchak reported Mark Ruff recommended the pay-as-
you-go and more flexibility with the level of assistance. He also suggested a workshop to
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HR.A MINUTES
JUNE 3, 1998
discuss other financing options. Cash flow numbers need to be re-ran with the reduced
classification rates. Rita Ubich reported the MCP was supportive of the plan as it fits the
downtown revitalization plan and the design standards.
Barger felt the lIRA should preserve their dollars for the larger redevelopment project.
Murray saw the project as 100% speculative with no tenants. Lahr liked the project but
saw the up-front as too great a risk, he preferred the pay-as-you-go.
Barger made a motion to provide TIP assistance in the amount of $100,000 NPV,
45%/55%/22 years or first 100% of increment over 9 years. Hayes said it would not
work, they need $150,000. Barger withdrew his motion. Hayes felt the lIRA should look
at this as equity into a project not a debt. Andrews said not up-front monies. Murray
made a motion to table any action and requested a meeting be set with the financial
consultants. Andrews seconded the motion and with no further discussion, the motion
passed unanimously.
5.
Consideration to hear preliminary concept for development of a housing district for St
Benedict's Center.
Koropchak: introduced the project with an overhead of a map of the proposed site and
brief description of the project. Allen Black informed commissioners St. Bens was
receptive to pay-as-you-go assistance; however, they were unclear as to the length of the
district. Koropchak said the maximum length of a housing district was 25 years and
stated the city and HRA would be interested in a "qualified housing district" wherebye the
City is exempt from the HACA Penalty. Black agreed to a "qualified housing district" and
said they plan to use the 20/50% approach. He indicated St. Bens was prepared to
execute the Pre Agreement and issue the $5,000 check. Black continued stating the
housing market study shows the need for senior independent and assisted living, St. Bens
will purchase the eight-acre site for $280,000 from St. Henry's. Lahr found the concept a
good community project. Koropchak requested submittal of the marketing information
for HRA files as documentation for need of additional senior housing to insure the
existence of Mississippi Shores which also received public assistance.
Steve Andrews made a motion to use 90% of the increment over 25 years to assist with
eligible TIP expenditure in an amount not-to-exceed $440,000 NPV subject to submittal
of marketing information. Brad Barger seconded the motion and with no further
discussion, the motion passed 5-0.
Bob Murray made a motion authorizing preparation of the establishment ofTIF District
No. 1-24, a qualified housing district, for the 60-unit senior independent living facility to
be developed, owned and operated by St. Benedicts Center. Motion subject to receiving
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HRA MINUTES
JUNE 3,1998
an executed Pre Agreement and cashier check. Darrin Lahr seconded the motion and with
no further discussion, the motion passed unanimously.
6. Consideration of a request for additional TIF assistance for project I within TIP District
No. 1-22.
Brad Johnson, representing developer Barry Fluth, reminded commissioners of the
reciprocal of easement agreement wherein K-Mart and the owner of the K-Mart building
had the right to approve any changes to the mall. It had been hoped the resolution of
condemnation approved by the BRA would have resolved the dilemma; however, it did
not and with no time to litigate, the developer had to buyout the owner of the K-Mart
building. Without a clear title, the title did not insure the bank mortgage. Steel is
expected to arrive June 26.
Johnson requested the HRA consider reimbursing developer Fluth for the buyout from the
reciprocal agreement from excess tax increment. The buyout at $10,000 per year for 10
years and $150,000 at year-end ten for a total of $250,000. Johnson informed
commissioners that legal costs are eligible TIF expenditures. Lahr was not interested to
turn to the taxpayers. Frie felt the HRA should take a look at it, as the church had been
bailed out. Murray would consider an allocation, not the full amount. Barger questioned
if payment had been made in order to insure the bank mortgage, how does is fit the "but
for" test? Because of a timing issue, condemnation would not work. Council member
Stumpf mentioned upon seeing the proposal perhaps a middle of the road approach was
possible. Dan Frie made a motion to have the proposal reviewed by the HRA attorney
prior to an HRA decision. Bob Murray seconded the motion and with no further
discussion, the motion failed. Yeas: Frie and Murray. Nays: Andrews, Lahr, and Barger.
Steve Andrews made a motion to dismiss the request and not to waste time. Noting the
situation was unfortunate. Darrin Lahr seconded the motion and with no further
discussion, the motion passed. Yeas: Andrews, Lahr, and Barger. Nays: Frie and Murray.
7. Consideration to authorize execution of the Contract for Private Redevelopment between
the lIRA and Allied Companies.
Darrin Lahr made a motion authorizing execution of the Contract for Private
Redevelopment between the HRA and Allied Companies. The level of pay-as-you-go TIF
assistance not-to-exceed $181,000 for site improvement and land write*down. The HRA
retains the first 20% of the annual tax increment. The city/HRA local contribution will
apply to the sanitary, water, and storm sewer trunk fees. Dan Frie seconded the motion
and with no further discussion, the motion passed unanimously.
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HRA MINUTES
JUNE 3, 1998
8. Consideration of interest to acquire the property located at 613 Sixth Street West.
HRA commissioners were requested to consider acquisition of the property located at 613
Sixth Street West. The property is listed at $39,900 and is an ideal start for the scattered
housing program which is a top priority of the City Council. Andrews felt the program
guidelines must be developed first and funding resources explored such as in Big Lake.
Dan Frie made a motion requesting the City Council consider authorizing and exploring
the development of a scattered housing program utilizing grant money from the Minnesota
Housing Finance Agency, McKnight Foundation, or other sources for the purpose to
eliminate blight and provide affordable housing. Steve Andrews second the motion and
with no further discussion, the motion passed unanimously.
Brad Barger made a motion to table any action to purchase the property because no
scattered housing program exists and commissioners were unclear as to the seriousness of
the Council for development of such a program without an identified source of funding.
Bob Murray seconded the motion and with no further discussion, the motion passed
unanimously.
9.
Consideration to review the first draft of the proposed TIF Guidelines.
Lahr reported Andrew and he met once to discuss the importance of jobs, wages, and
return on investment. They reviewed the Savage guidelines finding no rational or thought
process to those guidelines. The item was tabled.
10.
Consideration to approve monthly HRA bills.
With the exception of the Hoisington invoice, Bob Murray made a motion to approve the
monthly lIRA bills. Brad Barger seconded the motion and with no further discussion, the
motion passed unanimously.
11. Consideration of committee reports:
a)
Community Center - Murray reported the small group was faced with the decision
to decease the size and quality of the community center or request the $500,000
initially reduced from the project back into the package. Andrews informed
commissioners with the acquisition of additional land and increase in size of 10,000
sq ft, the cost would increase about $30,000 annually. Representatives were
unable to recall what accounted for the increase in size. Murray said the small
group will consider three alternatives to accommodate new input: Design, funding,
and adjustment in quality and size. Lahr reminded HRA representatives that the
lIRA approved a $9.4 million project cost after considerable negotiations to
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HRA MINUTES
JUNE 3, 1998
reduce the project cost by $500,000 and stressed the importance of quality
materials to insure low maintenance and longevity. Council member Stumpf
asked why a Chamber office and not the deputy register office? Chamber had
requested space within the community center; however, without knowing fee for
rent of office and conference space, the Chamber has not made a final decision.
Murray said he would take the question of the deputy register space back to the
small group for discussion.
b) Marketing - Lahr reported on the draft copy of the marketing principals stating the
plans to receive HRA and IDC blessing before submitting to Council.
Commissioners agreed to the draft in principal and agreed to hiring an outside firm
for development of a concept for the brochure.
c) Koropchak reported about 27 individuals have signed up for the bus tour and golf
outing. Bus tour begins at 10:00 a.m. on June 10.
12. Executive Director's r~ort.
Accepted.
13. Other Business.
a)
b)
Commissioners requested Koropchak order business cards for each commissioner.
Barger informed members that he and Harwood are looking into construction of a
12,000 sq ft building to lease 7,000 sq ft to B&B Metal Stamping and the
remaining 5,000 sq ft for speculation. He inquired to the use of TIP for site
improvements in order to reduce the lease to under $4.90 plus taxes. As the HRA
previously wrote down the land cost, Koropchak suggested perhaps this was a
situation where the city tax abatement program would work best to eliminate the
need for the local contribution or the HACA Penalty.
14. Ad1ournment.
Darrin Lahr made a motion to adjourn. Dan Frie seconded the motion and with no other
business, the HRA meeting adjourned at 10:20 p.m.
Chairperson
Executive Director
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HRA AGENDA
. JULY 1,1998
4. Consideration of a request for a buy out rather than contract for deed.
A. Reference and Background:
The enclosed Purchase Agreement was executed between the HRA and Larry ScWief As
you know it has taken Mr. Schlieflonger than expected to cure the title defects. Mr.
ScWiefs attorney now has the necessary signature from Mike O'Connor and hopes to
schedule a closing sometime mid-July.
In my conversation with Mr. Schlief, he inquired ofthe HRA's interest of a buyout rather
than a contract for deed per the Purchase Agreement. With the prolonged time to clear
the title, the family would rather cash out. Mr. ScWief does realizes we have an executed
Purchase Agreement. The agreement does state the seller has 60 days after receipt of the
written objections to cure title defects. In the event, the property cannot be made
marketable by the seller by closing date, at the option of the buyer the Purchase
Agreement shall be null and void and the earnest money refunded to the buyer. Mr.
Schlief will be present at the HRA meeting.
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The March 1997 appraisal had an appraised value of $86,000. ScWiefalso noted Mr.
O'eonnor may be interested in selling.
Cashflow is a question for the HRA? You will recall as part of the 1998 City Budget, the
Council pledged $35,000 to the HRA to assist in property acquisition within the
downtown redevelopment district. In this agenda alone, the $35,000 could also be
considered for the Amoco station and Carlson property.
In checking with HRA Treasurer W olfsteller as of April, 1998, the HRA General Fund
and TIF Fund has a total cash balance of $225,000. The committed expenditures of
$150,000 for Industrial Development Reserve Fund, approximate $15,000 for the final
Hoisington invoice, and NAWCO payment of $10,000 are not accounted for in the
$225,000 nor the pledged revenue of$35,000. The $35,000 pledged revenue for
industrial marketing is under the Economic Development Budget.
HRA General and TlF Fund Cash balance
Pledged dollars for redevelopment acquisition
TOTAL CASH
$225,000
$ 35,000
$260,000
LESS COMMITMENTS
Reserve Fund
Hoisington
NAWCO
$150,000
$ 15,000
$ 10,000
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BRA AGENDA
. JULY 1,1998
TOT AL COMMITMENTS
$175,000
CASH LESS COMMITMENTS
$ 85,000
Certainly, the Reserve Fund dollars can be considered available cash.
B. Alternative Action:
1. A motion re-instating the terms and conditions ofthe executed Purchase
Agreement of October 22, 1997.
2. A motion authorizing a cash buyout subject to re-negotiation for a lesser purchase
price than $83,000.
3. A motion to table any action.
C. Recommendation:
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Two ways to look at it: One, signed contract is a signed contract. Or if the price is
lowered for cash buyout, the HRA receives the deed to the property rather than a
contract for deed.
D. Supporting Data:
Copy of the Purchase Agreement and Commitment of Title Insurance.
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HRA AGENDA
OCTOBER I, 1997
COPy
4. Consideration of an update on the status of the Purchase Agreement between the HRA
and Lany Schleif
A. Reference and Background:
After the HRA and Mr. Schleif agreed to the purchase price of ($83,000 as is) and the
terms ofthe Contract for Deed, Mr. Schleif informed me his sister also agreed. In the
meantime, I'd spoke with HRA Attorney Bubul and he suggested a purchase money
mortgage rather than a contract for deed which would allow the HRA to receive the deed
upon closing rather than upon satisfaction of the contract for deed. without the deed, the
HRA can not demolish the buildings, therefore,~ the HRA must consider renting.
I did ask Mr. Schleif to consider a purchase money mortgage; however, Mr. Schleif's
attorney, Ken Holker, recommended he go with the contract for deed. At that time, Mr.
Schleif requested the following appliances be excluded from the purchase agreement:
refrigerator, washer, and dryer. In a conversation with HRA Chair Barger, it was
determined the purchase price offered by the HRA was $83,000 as is; therefore, this is
reflected in the Purchase Agreement drafted by Attorney Corrine Thomson, Kennedy &
Graven. Hopefully, the Purchase Agreement is executed by both seller and buyer by the
October HRA meeting. Mr. Schleif expects the estate to be in probate through the end of
October.
Copy of the Purchase Agreement attached.
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PURCHASEAGREENmNT
1. PARTIES. This Purchase Agreement is made this _ day of . 1997
by and between LARRY SCHLIEF ("Seller") and HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF MONTICELLO. a public body corporate and politic
("Buyer").
2. SUBJECT PROPERTY. Seller holds a putative interest in that certain real estate (the
"Property") located at 3 Walnut Street, Monticello, Wright County, Minnesota and legally
described as follows:
Lot 6 and the easterly 33 feet of Lot 7, Original Plat of Monticello
[Note: legal description is subject to verification]
3. OFFER/ACCEPTANCE. In consideration of the mutual agreements herein contained,
Buyer offers and agrees to purchase and Seller agrees to sell and hereby grants to Buyer the
exclusive right to purchase the Property and all improvements thereon, together with all
appurtenances, including. but not limited to, garden bulbs. plants. shrubs, trees, and grass.
4. PERSONAL PROPERTY INCLUDED IN SALE. The following items of personal
property and flXtures owned by Sellers and cunently located on the Property are included in this
sale: refrigerator, washer, dryer, storm windows and inserts. stann doors, screens, awnings,
window shades, blinds, curtain-traverse-drapery rods, attached lighting fixtures with bulbs,
plumbing fixtures, sump pumps, water heaters, heating systems. built-in appliances. water
softeners, garbage disposals. installed carpeting, work benches, television antennas and hood-fans.
Upon delivery of the deed, Seller shall also deliver a Bill of Sale for the above personal property.
S. PURCHASE PRICE AND TERMS:
A. PURCHASE PRICE: The total Purchase Price for the real estate and personal
. property included in this sale is Eighty-Three Thousand and No/lOOths Dollars
($83,000.00).
B. . TERMS:
(1) EARNEST MONEY. Seller acknowledges receipt of One Dollar ($1.00)
as earnest money.
(2) CASH AT CLOSING. Buyer agrees to pay by check on the Closing Date
the 5\Ull of Nineteen Thousand Nine Hundred Ninety-Nine and No/lOOths
Dollars ($19.999.00).
(3) CONTRACT FOR DEED. The remauung balance of Sixty-Three
Thousand and NoIIOOths Dollars (563,000.00) shall be financed with a
contract for deed in a fonn substantially similar to the attaChed Exhibit A.
The armua! payment requirec1 by the contract t(lr deed Shall De detemunCX1
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as of the Closing Date by amortizing the balance of $63,000.00 over 30
years at the applicable FHA rate on the date of closing, with a balloon
payment after four years.
(4)
DOCUMENTS TO BE DELIVERED AT CLOSING. Seller shall deliver
to Buyer:
a. Contract for Deed required at paragraph S(B)(3) above.
b. Bill of Sale required at paragraph 4 above.
c. Standard fonn Affidavit of Seller.
d. Waiver of Relocation Benefits as to rental activities, as required by
paragraph 14 of this Agreement.
e. Such other documents as may be reasonably required by Buyer's
title examiner or title insurance company to establish good and
marketable title in Seller. subject only to Buyer's contract for deed.
6. REAL ESTATE TAXES AND SPECIAL ASSESSMENTS.
A. Seller shall pay at or prior to closing all real estate taxes due and payable in 1997
and prior years.
B. Seller shall pay at or prior to closing all installments of special assessments,
payment of which is due in 1997 or prior years.
'7. MARKETABILITY OF TITLE. The Seller, within a reasonable time after acceptance
of this agreement, shall furnish Buyer with an abstract of title or registered abstract of title to the
Property, certified to a current date and including proper searches covering bankruptcies,
judgments and tax liens. Buyer shall have twenty (20) days after receipt of the abstract to
examine the same and to deliver written objections to title, if any, to Seller. Seller shall have
sixty (60) days after receipt of written objections to cure'title defects, at the Seller's cost. In the
event that title to the Property cannot be made marketable by the Seller by the Closing Date,
then, at the option of the Buyer, this Purchase Agreement shall be null and void and the Earnest
Money shall be refunded to the Buyer.
8. CLOSING DATE. The closing of the sale of the Property shall take place on or before
October 31, 1997, or at such earlier or later date as may be mutually agreed upon by the Seller
and Buyer. The closing shall take place at , or such other
location as mutually agreed upon by the parties.
9. POSSESSION/CONDITION OF PROPERTY. The Seller shall deliver possession of
the Property to Buyer by 4:00 p.m. on the Closing Date, in the same condition as the Property
existed on the date of this Purchase Agreement, reasonable wear and tear excepted. Seller shall
remove all debris and all personal property from the Property prior to the date of possession.
10. DAMAGES TO REAL PROPERTY. If the Property is damaged prior to closing. Buyer
may rescind this Purchase Agreement by notice to Seller within twenty~one (21) days after Seller
notifies Buyer of such damage, during which 2 I-day period Buyer may inspect the real propeny,
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and in the event of such rescission, Seller agrees to execute a cancellation of this Purchase
Agreement and return the Earnest Money to Buyer.
11. DISCLOSURE; INDMDUAL SEWAGE TREATMENT SYSTEM. Seller discloses
that there (IS) (IS NOT) an individual sewage treatment system on or serving the Property. If
there is an individual sewage treatment system on or serving the Property, Seller discloses that
the system (IS) (IS NOT) in use. and SeUer further discloses that the type of system is a
system, and Seller agrees to furnish the Buyer with a map showing the
location of the system within five days of the date of this Agreement.
12. WELL DISCLOSURE. Buyer acknowledges receipt of a well disclosure statement,
which is attaclled to this Purchase Agreement as Exhibit B.
13. SELLER'S WARRANTIES. Seller wurrants that buildings, if any, are entirely within
the boundary lines of the property. Seller warrants that there is a right of access to the real
property from a public right-of.way. Seller warrants that there has been no labor or material
furnished to the property for which payment has not been made. Seller warrants that there are
no present violations of any restrictions relating to the use or improvement of the Property.
These warranties sball survive the closing of this transaction.
14. RELOCATION BENEFITS. Seller acknowledges that this Purchase Agreement is not
made under threat of acquisition by eminent domain proceedings. Seller further fepresents and
warrants to Buyer that the Property is vacant and unoccupied and that there are no persons
eligible to receive relocation benefits or assistance as the result of the Buyer's acquisition of the
Property. This warranty shall survive closing. Seller agrees to waive any and all relocation
benefits, assistance and services. related to the Property. Seller agrees to provide to Buyer at
Closing a waiver of relocation benefits executed by all owner(s) of the Property.
'" 15. ' NO BROKER INVOLVED. The Seller and Buyer represent and warrant to each other
that there is no broker involved in this transaction with whom they have negotiated or to whom
they have agreed to pay a broker commission. Buyer agrees to indemnify Seller for any and all
claims for brokerage commissions Of finders' fees in connection with negotiations for purchase
of the Property arising out of any alleged agreement or commitment or negotiation by Buyer. and
Seller agrees to indemnify Buyer for any and all claims for brokerage commissions or finders'
fees in connection with negotiations for purchase of the Property arising out of any alleged
agreement or commitment or negotiation by Seller.
16. NO MERGER OF REPRESENTATIONS, WARRANTIES. All representations and
wananties ,contained in this Purchase Agreement shall not be merged into any instruments or
conveyance delivered at Closing, and the parties shall be bound accordingly.
17. ENTIRE AGREEMENT; AMEND:MENTS. This Purchase Agreement constitutes the
entire agreement between the parties, and no other agreement prior to this Purchase Agreement
or contemporaneous herewith shall be effective except as expressly set forth or incorporated
herein. Any purported amendment shall not be effective unless it shall be set forth in writing and
executed by both parties or their respective successors or assigns.
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18. BINDING EFFECT; ASSIGNMENT. This Purchase Agreement shall be binding upon
and inure to the benefit of the parties and their respective heirs, executors, administrators,
successors and assigns.
19. NOTICE. A1.1y notice, demand, request or other communication which mayor shall be
given or served by the parties shall be deemed to have been given or served on the date the same
is deposited in the United States Mail, registered Or certified, postage prepaid and addressed as
follows:
a. If to Seller:
b.
Monticello HRA
Attn: Ollie Koropchak
P. O. Box 1147
250 East Broadway
Monticello, MN 55362
If to Buyer:
20. SPECIFIC PERFORMANCE. This Purchase Agreement may be specifically enforced
by the parties, provided that any action for specific enforcement is brought within six months
after the date of the alleged breach. This paragraph is not intended to create an exclusive remedy
for breach of this agreement; the parties reserve aU other remedies available at law or in equity.
IN WITNESS WHEREOF, the parties have executed this agreement as of the date written
above.
SELLER
Larry Schlief
BUYER
HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF
MONTICELLO
By
Its Chairperson
By
Its Executive Director
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cc.~~f' ~1.. ~ 'iz"J: ii.?.i!a.ooKENNEDY &0 GRAVEN F_ No. 1782
1~"~.__'S1.1
......w...EoI..~....~ v...... lWIi..__
No delinquent taxee and tranafer encered;
Cert1f1eate of Real Eetate Value
( ) f11ed. . ( ) DOt requirecl
. , 19_
County Auditol'
By
Deputy
I_V" fOIl (~~"'. o..ca)
MORTGAGE REGISTRY TAX DUE HEREON;
S
~_ for ~ Ngi,ttry tu: ~t datil)
Date:
.19_
THIS CONTRACT FOR. DEED ie made on tM above date by
(names of record owner(a)]
Bous~u. and Ra4eve1opmeut Authority iAaAd
SeUar (....hether cme or more). and ~or the City o~ Monticello
b. ~ llnarit:a1 status)
pu ...u-coay
.acoruorate and pol:!.
uncler the .Iaw. 'of
, Purcb..er (wbether on_ or more).
SeU.r cmc:l Purcbuer .... to the foIlowiDg ~:
.1. PROPERTY' DBSCIUPTION. Sellar' IMnby ..u., azul Purehaaw hereby buy., real property in
COUAty, WiD:Desota" clucri.becl, as 10Dowa:
Lot 6 and the easterly 33 feet of Lot 7. oriainal plat of Monticello
[legal'to be.verif1.ed]
.,
. '
topthw with aJl ~tam.eSlt8 aDel appurteDllIl"'l~e. belonaiAa thent to (the pi'opel'ty).
2.T1TLE. Seller wanenta that title to the. PrOpll'ty ie.OII the date of this contnct. IlUbiect 0Dly to the
followina ozceptiODa: . ' .
. Ca) COVeDaZl.ta. CODditioD.. ~trictloD8. declaradcme. Uld ea.8N".nta of record. if any; .
(b) RaurvatiOlUl of mineral. or mblena1 ric'hy by the State of MiDneaota. if -.:
(c) Bnn.tb"S. 2..ulli"lr and subdivillioa law. ud resulatioallj .
(d) The lieD of real _tate taZM aDd .....u....."u of lIpecial......menta. whi~b an pQ'eble by
Purcbaeer pQI'SU&Dt to parap'aph 8 of .thi. CODtract; azul '.
(e) TIIcl (oIJowiDs liella"or epc:umbraDCell: NOAe .".
8. DELIVERY OF DEED AND EVIDENCE OF TITLE. Upon Purcha_r'. prompt; and full ~e of this
contract,. Seller .hall: .
(a) Ezecute, aelmowle4&e aDd'deUvw to PUrchanr . . Warranty Tleed.ia ncontable 101:'lI1o conveying
aaarket;able title to the Pro~ to Pureha.... .ubjeet cmly to a;U fo11owm. exceptiona:
(1) Thoee eaceptioAa rofened to ill paragraph' 2(e), (b). (c) aDd (d) of We COIltr:aet:
(iiJ Li..... eDCWDbl'aDCe8" advane c1aJma at other matters whJ~ Pwchaeer hu created.8uffered or permitted
to. accrue after Che datoe of ~ contract; aDd
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'(ill) The fc;illowing liens or encumbrances:
None
: and
, (b) ,Delivor to Pw-c:h.aa.r the abetr.ct of title to the Property or, if the title is regist.er~ the
duplicate certificate of title. '
4. PURCHASE PRICE. Pu~chaser shall pay to Seller. at
[insert address of 5el1er]
.' the SUDl of
, . .. .
, 'Eie:htv three thousand apd 00 II 00 Do 11 ars--~---------------------7"--- ($ A'" J nnn nn ) .
ae ancl for the pui'chue price for the Property. payable, as follows:
1) $20,000 upon ax.cut~on of this contract. receipt of which 1& acknowledsad by Salla:
2) Four .n~ual, inatallments of $ each, which'shall be payable on ~ 1"
, 1998. , 1999 and , 2000 [installments ,Were
ca~cuLated,ue~nc an annual inter.st rate' of ____% amortized over a ,30-year period]
3)
The balance 'of $
shall be due and payabloon
. 2001.
'"
Interest o~ this contract aball accrue at the rate of ___ p.~cant par annua.
6. PRE:.PA YMENT. UDla_ othenriae FOv1dacl in this contrau:t, Purchaaer ahall have the riaht to fully or pIU"tially
pnpay this contract at allY tizDe witbout ~ty. ADy partial pNpqlllellt .hall be appJie4 Brat to ~~t at
IUDOUD.t8 then due UDder this COI1U'au:t. i".. . g UnPaid ~ iDc.nat" azul the ~l..ftee shall be applied to the
prlDcipal inatallmente to be paid iD. thAI inver.. order of their maturity. Partial prepayment ahall Dot postpone
the clUe data of the iD......n-ot. to be paid purauAllt to uu. ccmt.rac:t QC' chaD,p thAt amount of such ilMtallinent8.
6. REAL ESTATE TAXES AND ASSESSMENTS. PurchaHraUllpa)".lMrforepmalty&CCl'lW8. allrealeatate taus
8Dd ~1l_.,. of special. -----ta ...ltu~ ~t the Pk....-t.", wbicb an due tmd payable in the,... 19 -
aDd in aU the subeequent y--. R.l ..tate taxea aud Ju.....lIftU1ftta Of apeda1 ..MMJ:I"ente which are due aDd payable
, in the yMr in which this contract ie dated lIhall be pQd .. t.ollowa:
Seller shall pay all reale.cate taxes and ~a.ta11mant. of 8pac~a1 aase8sment- due
and payab~e in 1997.
SeIl&r WaJTante that the real estate tazee and inet..lt---t's of .pee:J.l .....amente which W8I'8 clue aDd. payable in
in ~ ;years pnteediftg the y.... iA ~hich this contract Is dated. are paid in fulL
7. PROPERTY INSURANCE. '
(a) INSURED RISKS AND AMOUNT. Purcbuer '.ball kMp all buildS"'... improv~t. and. bturM now or
later Ioeatecl on or a ~art Of the Property insured apillet 1088 by fire. eUeDded coverap D8ri1abvaftd..HOlm.
maHciouo IDi8eblef 1Uld, if applicable, eteam boiler ezPJosion for at __t tlUIlUDOUDt of .:::t.8'3.00 .00 ,
If any of the bW!cliDge. impraWlDUlDts or fizturM are located m . federally deaipated tIoocl pnme area. aDd if
floocl bururlUaCe ia available for t;bat area. Purchaaer shall procv.re aDd maintain flood iDauranC8 in 1UD000ta
reulOIUlbly _tiafactory to Seller. '
(b~ OTHER "ftRMS. TM lDauramce ~y e.u contain a loss payable c1aUH in favor of Seller which provjdes
that aeUer'.,riaht to recover uncl.. the ineunuu:e 8ha1111Ot M ~ by aa.y ecA or ombeioDe of PUrchaser
or Sellar. and that Seller IIhall otherwiH be afforded, all riFt. &Ad privilege. cu.atomarily provided a
mortp~ under the eo-ca11ad, standard ~se elao... '
(c) NOTICE OF DAMAGE. ID tU .vaAt of cIam8.. to the Property by fin 01' ou.. caaualty. Pureb.ueI' aball
proca.ptq' aive notice of lIUCh dame.. to a.u.r imd tbe 1nau.raDCl8 company.
8. DAMAGE TO THE PROPERTY.
(a) APPLICATION OF'INSURANCE PROCEEDS. If the Pro~~'. d.amepd by fire or other caeualty. the
insurance proceeda paid on account of 8UCh damap ehall be to payment of the alDOQDtII payable by
~ u.ncS. thfe contrec1:, even if 8uch aJDOUDU an not due to be pa1d, uaJ._ Purcha.... Duak_ ·
Dermitted. electioll d8ec:ribed In tha DlIKt pu'alll'a. SUch amo\l.Ilte eball be first .p~8d to ~ accrued
hlt&reot and Ilezt to the uw...n.....nt8 to be paid.. pI'OYidecl in thie coaWact in tbe mver_ order of their
JDaturity. Sw:h,~ ehall.lIQt~e~ the ciu. claw of !;he i_bn-1IDtII to be ~ ~ to t;bie
cont.rsct or~. the IUIlOUDt of 8Uch II1.8taJJmenta. The hAl_n",,", of inaurcu:ace proceed&. illIJIY, lIhall be the
, p-op8l"Cy of, Purclaaaor.
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9,
(b) PURCHASER'S ELECTION TO REBUILD. It Purcba8w is DOt in detaultundar this contract. or after
ew:inC .ny such default. and if th- m~ in any prior mort..p_ and ..u.rs in any prior conuaeta for
deed do not ~uire othenriae, Purchaaer may elect to have that portion of 8uch tn.urance proceeda DeCeuaty
to repair, replace or restore the dama~ Propllrty (the reD8ir work) deposited in eacrow with a bank 01' title
m...urance company ~ed. to do buameea in the State of'Minneaota. or such. other ~ty: aa may be mutually
agreeable to seuM ancl P\U'eha8er. Tho election ID&Y only be ~d.e by written notice to Seller within sixty days
after the clamage OCeUl'8. Al.lIo, the elec:.tion will onlj/' be permitted if the plana and .~tion. and contract.
for the repair work aze approved by Sen.... which l!PproV4l1 Seller ahall not WU8B80Dably withhold or dlday. If
such a permitted elec:tiOD. i. made by Purchuer. seuer and Purchaser .hall jointly depo8it.when P8id. 8uch
iJuJura.nce ptoceeds into sucl1 eacrow. If such inaurllDCe procseda are inaufficlent for tha repair work, ~
shall, before the commencement of the repair work,dai?Oait into such. escrow sufficient additional money to
iDaun the full payment for the repair work. Even if the iDaurance proceeda are unavailable or are insufficient
to pay the coat of the repair work. PurehaMr shall at all timaa be rupoDaible to pay the full eost of the r~
work. All escrowed. funds shall be dispureed by the eec:rowee in accordance with generally accepted soUnd
construetion disbursement proceduru. Tba coata im:un'ed or to be inqUrred on account of such work.
Purcha._ shall complete the repair WOl'k a. soon as reaaonabl:r. pos8ib1e and in a good alld worlr'.....n.1ikoe
. manner, and b1 any event the ~pair work 8hall bt completed by P\lrchaaer withln ona year after the ~
occurs. It, follo~ the completion of and payment for the repair work, there remain any undisbursed el!lCl'ow
funda, euch fullds ihall be applied to payment of the amount. payable by Purchaser \Ul.der thie contract in
accordance with. ~&1'~~h 8 (a. above. .
INJURY OR DAMAGE OCCURING ON THE PROPERTY.
(a) LIABILITY, Sellar &hall be free from liabWty and claims for damages by radon ot injuries occurina on or after
the date of thia contract to any paraon or persona orpz'o~y while on or about tlwI Propert:y. Purcbaaer .ball
defend and indl8lDDify Seller from all liability,loas, costa imd obligations, including re&aonabla attorney's fee8.
0'11 account of 01' /Billing out of any such inJuries. Howevel', Purehaeer shall bave DO liability or obligation to
Seller for such in:lurie8 which are eausMd by the nelI!igence 01' intentional wrongful acts or omisaiona of Sell....
(b) LIABILI'rY IN'SURANCE. Purchaser shall. at Purehaser's OWI1 ~penH. procure and maintain liability
insurance apinst claims far bodily injury, death and J>>:o~ty dauw.p oeeurins' on 01' about the Property in
amounts reaeoll8bly satisfactory to S8ller and naming Seller as an additional iilsured.
INSURANCE .GENERALL Y. The insuranat which Purebaser w requked to pr0eur8 and maintain purewmt to
..P4l'asraphs 7 and 9 of this contract shall be iseUed_b'y. Ian ins\U1UlCl8 com~ or companies licensed to do
businese in the State of MiDDesota aDd acceptable to SeDer, The insurance ahaU 1M maintained bf' Purc:haHl' at
all tiJnea while an)" lII110Ullt re-aift. unpaid Under thia contrau:t, The U1aW'llIlC4I policiea eball provlCle for not le.s
than ten days wntten notice to Seller 1iefore eaDCellatiOll.. non-renewal, tennination or ~ in eoverase, and
Purchaser shall deliver to Sel1w a duplic,ate ~ or certificate of such insurance policy or polleies.
CONDEMNATION. If all or any part of the property is takon in condemnation pnx---'h..gs instituted under
power of #OYninAftt domain or ia conveyed in lieu thereof under theeat of condemnation, the money paid pursuant
to such co.nd.em.nation or conveyance in lieu thereof shall be applied to payment of the ~ta_ p-&yable by
Pw'chaaer under this contract, even if such amounts are not then due to be ~ Such amOUDta ehall be applieQ
mat to unpaid aCCl'Ued inter.at and nu:.t to the installments to be paid as prOvided in tbi.a contract in the invena
order of tneir lnaturity, Such payment ehall not postpone the due date of the in.tan-.rt. to be paid pureuant to
this contraet or ehanp the amount of aueh 1net&llznent8. The balance, if .~y, shall be the property of Purc:haae:r.
WASTE, REPAIR AND LIENS. Purehaeer shall DOt remove or demol18h any builrlinga, improvemente or
fixture. now or later located on or a part of the Property, nor ahall Pureha88E' commit or alloW' wa.te of the
Property. Purchaaer shall maintain tlie Pro~y in i'~ood ,ndition alld repair. Purchaser shall not create or
. permit to ac:.crue liene or adverse claim. agaulst the which constitute alien or claim. againat Seller'8
mterest in the Property. PurchaMl' shall pay to Seller amounte, costa and ezpense8, incluciiD8 reasonable
a~torney'. fees, incurred by Seller to remove any aueb UNUt or adverse claim.
DEED AND MORTGAGE REGISTRY TAXES, Seller shall, upon Purchaser's full performance of thie
contract, pay the deed tax d.ue upon the recording 01' filing of the deed to be delivered by Seller to Purchaser.
The .n1ortga~ registry tax due upon the recording or ~ of this contract shall be paid by the p~y who
records or files this contraet; however, thiB provision shall not impair the right of Seller to collect from
Purchaser the amount of such tax actually paid by Seller.. 1>>'ovided in the appliCable law governing default
and. serviee of notice ofterminetion of thia contract.
NOTICE OF ASSIGNMENT. If either Seller or Purchaeer a.aigns their in~..t in the Property, a copy of.ueh
assiaJunent shall promptly be furDiehed to the non-uaigDing party..
. PROTECTION OF INTERESTS. If Pureha.ser fail. to pay any aum of monay required under the tenDs of this
contract. or faile to perform any of Purchaaar's obligaticms as set forth in this contract. Seller may, at Seller's
option, pay the seme or cau8e the same tp be perfonzied. or both. and the emOW'lta lIO paid by Seller and the cost
of such performanee shall be ~'yable at once, with int;ereat at the rate stated in ~graph " of this contract.
as an additional amount due Seller under this contract. If there now exists, or if seuer hereaftal' CJ'eates, liIuffers
or pennita to accrue, any mortgage, contract for deed, lien or encumbrance apihat the Property which i8 DOt
herein 8ZJilre8s1y a.sumed by Pw'eha8er. and provided Purchas.,. is not in default under t&ia contract. Seller
ehaD tUneJ.y pay all amount-. due thereon, and if Seller falla to do so, Purchaser may, at Purchaeer'. option, pay
any such delinquent lUllount. and deduct the amount. paid from the ina'tallrnentt.) next eoJD1na due under this
conuaet,
DEFAULT. The time of perlonnance by Purcba8er of the tenna of thia contract ia an eesential part of thi8
COl1tZ'act. Should. Purchaser fail to timely perform any of the tenna of this contract, Seller may, at Saller'lII
option. elect to declare this eOntract cancelled and tenninated by noUce to. Purchaser in accordance with
applicable law. All right, title and intweat acquired under this contract by Purcha&Mlr 8hall then eea.ae and
terminate, and all irnprQvemente made upon the Property. and all payments made by Purchaser pW'suant to thia
eontraet shall beloe. to Seller as liquidated damage. for breach ofthia c:.ontnlct~ Neitber the extension of the
tim.fo~ paY.n1ent of any 8UID. of mODeY to be paid bereunder- nor anywaiv.. by Sell.. of Seller'a rights to declare
this contract forfeited by, reason of any brea~ ahaU in aD)" ,manner effect Sellw's riBht to cancel this contract
because of defaul.ts aubaequently oeeuri:ng, IUlClno eatelLlllion of tiJne shall be, valid unle88 agreed to in writmg_
After service of notice of default and. failure to cure .uch,default within the periOd allowed by law. PwchaMr
shall. upon demand, surrender pos....ion of the Property to Sell.,-, but Purehaaerahall be entitled to posseesi.cm
of the P~Op8rt.y until ,the ezpintion of sucb period. . .,
BINDING EFFECT. The terms of this contract aballrun with the land and bind the parties hereto and t.beJ.r
sw::ceSllIOI'll in intere8t. .
10.
11.
12.
13.
14.
15.
18,
17.
f.
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SEP 24 '97 15:02 KENNEDY & GRAVEN
P.10/10
18. HEADINGS. Headil188 of the paragraphs of this contz.ct are for cOIlvenience oDly aQd do not de.fiDe. limit or
co~tru.e the content. of 8~ch parasraphe. , '
19. ASSESSMENTS BY OWNERS' ASSOCIATION. 11 the Property is subject to a recorded declarat.ion providing
. for 88.eaaala,lb to be 1evi.ec:l againat the Property by any oWllel'a' auociation.' which ...ee.JflA"t. may
may become a lien against the Property if not ~d, then: "
(a) PurcNU._ .hall pronlptly pay, when du.. 'all ......menu impoaed by the owners' aailOCWtion or olJulr
iJOvernins body a8 required by the provisions of the decla.ration or other related documents: and '
(bl So long 8a'the owners' asaociation maintain. a master 01' blankec policy of insunlDCe against fire.
extended coverage perUs and such other, bauds and 1n .u,* amounts .. are' required by this contract.
then: . '." .
(ilPurchaaer'. obligation in this contract to maintain hazard iUIIlU'aDCe ,c;oven.se' on the Property
. is eatiefied; and. " '. ',' ,
(ii) . The pl"Oviaio118 in jJal'agraph 8 of thi8 conkact regardinc applicatiOA of insurance pr<<eeda 'shall
, be superceded by the provisiona of the declaration or othw related dOC1.1lDlIDts: and
(ill) In the event of a diatribution of. iDsurance pl'OCe4lCla in lieu of r..tor.tion or reJNlir following an
insured C4l1Ualty 1088 to the Property. any such proCeeds p&y*b1e to Purchaser are hereby ...igQ8C:
and shall be paid to $eller for- application to the 8\1m SIICUl'ed by this contract, with UIe ezceea. if an)'
paid to Purchaaer.,
20. ADDITIONAL,TERMS:
SELLER(S)
~gb'f}iltS.&! REDEVELOPMENT AUTHOlilJ:TY IN AND
Foa THE CITY OF MONTICELLO
.tJ
By
Its
Cha'irnerson
By
Its
Execut1v.D~rector
State. of MiDn..ota
; SS.
County of
The foresain&' ina~me.nt WAil. ackDowledg8d before me thill
by
day of
19
,",OTAflljIO,l. STAMP 01'1 s....... (Ol'l OTl-tI!Fl T~ OR RANK)
, . SIGNATURE OP NOTARY PUBLIC OR OTHER 01'?lOlAL
State of Mbu1eaota
,
f ss.
County of
.The fOl'egoing inat.rument wu aeknowledaed before me thia
by ~
. day of
.19
of
a
on behalf of the
I NOTARIAL STAMP OR SeAl. (OR OTl-tER Tln..e OR RANI()
under the law. of
lllGNATUlUIl OF NOTJ'UtY PUBLIC OR QTHJ;:R OFFICIAL
, T_ 1"6'-..............z JlI'-" 01_1_ ._ __ _Iloo -....
.
nus INSTRUMENT WIio& PRAFTED BY (NAME AND ADORE6&)
FAILURE TO RECORD OR FILE THIS CONTRAct FOR DEED MAY GIVE' OTHER PARTIEE.
PRIORITY OVER PURCHASER.R INTERERT IN THE PROPERTY.
_m.'.. ,..____n_
November 10, 1997
--
MONTICELLO
Mr. Larry Schleif
122 Kampa Circle
Monticello, MN 55362
Dear Mr. Schleif:
.
As per the Purchase Agreement between Larry Schleif ("Seller") and the Housing and
Redevelopment Authority in and for the City of Monticello ("Buyer"), Item 7. Marketability of
Title: The Buyer shall have twenty (20) days after receipt of the abstract to examine the same and
to deliver written objections to title, if any, to Seller. On October 23, 1997, one day following the
execution of the Purchase Agreement, the Buyer authorized Wright Title Guarantee to prepare a
Title Insurance Policy on their behalf.
The Commitment for Title Insurance was received at the Office of the Buyer on November 10,
1997. Attached is a copy of the Commitment for Title Insurance inclusive of the written
objections to title (See Schedule B. of the Commitment). The Seller shall have sixty (60 days)
after receipt ofwritten objections to cure title defects, at the Seller's cost.
Should you have any questions, please call me at 271-3208.
Sincerely,
HOUSING Ai'ID REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO
Qj~ "'~~~JJ~
Ollie Koropchak
Executive Director
Attachment
.
cc:File
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
.
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INVOICE
WRIGHT TITLE GUARANTEE CO,
109 South Second Street
P.O. Box 315
Buffalo, Minnesota 55313
0009900
Housing & Redevelopment
Authority of Monticello
Buyer : Housing and Redevelopment Authority
Seller: Schleif, Larry A.
Property address: 3 Walnut Street
Legal 1: Lot 6 & Easterly 33' of
Legal 2: Lot 7, Block ~4, Townsite
Legal 3: of Monticello
Sales Amount: $
Loan Amount : $
83',000.00
0.00
11/05/1997
Invoice #: 4508
File Number: 97100113
-------------------------------------------------------------------~--
---------------------------------------------------------------~~-----
Income Code
Description
Amount
----------------------------------------------------------------------
----------------------------------------------------------------------
owners premium
service charge
assessment search {seller}
abstract fee (seller)
269.75
125.00
35.00
151.70
Invoice Total
$
581.45
----------------------------------------------------------------------
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WRIGHT TITLE GUARANTEE CO.
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American Land Title Association Commitment - 1966
COMMITMENT FOR TITLE INSURANCE
ISSUED BY
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STEWART TITLE
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GUARANTY COMPANY
STEWART TITLE GUARANTY COMPANY, A Texas Corporation, herein called the Company, for a valuable
consideration, hereby commits to issue its policy or policies of title insurance, as identified in Schedule A, in
favor of the proposed Insured named in Schedule A, as owner or mortgagee of the estate or interest covered
hereby in the land described or referred to in Schedule A, uPQn payment of the premiums and charges therefor;
all subject to the provisions of Schedules A and B and to the Conditions and Stipulations hereof.
This Commitment shall be effective only when the identity of the proposed Insured and the amount of the
policy or policies committed for have been inserted in Schedule A hereof by the Company, either at the time
of the issuance of this Commitment or by subsequent endorsement
This Commitment is preliminary to the issuance of such policy or policies of title insurance and all liability
and obligations hereunder shall cease and terminate six months after the effective date hereof or when the
policy or policies committed for shall issue, whichever first occurs, provided that the failure to issue such policy
or policies is not the fault of the Company.
Signed under seal for the Company, but this Commitment shall not be valid or binding until it bears an
authorized Countersignature.
IN WITNESS WHEREOF, Stewart Title Guaranty Company has caused its corporate name and seal to be
hereunto affixed by its duly authorized officers on the date shown in Schedule A.
STEWART TITLE
~#td.~~
. President
GUARANTY COMPANY
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Authorized Signata
WRIGHT ITLE GUARANTEE CO.
P.O. BCX 815
Compan~09 SOUTH SECOND STREET
BUFFALO, MINN6SGTA 55313
City. Slale
II
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005 - UN . Rev. 3f78
SCHEDULE A
Commitment No.: 97100113
ABSTRACT PROPERTY
.
Effective Date:
October 09, 1997 at 8:00 a.m.
Prepared For:
Housing and Redevelopment Authority
in and for the City of Monticello
Inquiries should be directed to:
Wright Title Guarantee Company
Buffalo: 682-2023 Metro: 477-6312
Elk River: 441-5465
Monticello: 295-6567 Metro 332-7102
1. Policy or policies to be issued:
Amount
(a) XXX ALTA Owner's Policy
Proposed Insured:
$83,000.00
Housing and Redevelopment Authority in and for the City of
Monticello.
(b) ALTA Loan Policy
2 .
Proposed Insured:,
The estate or interest in the land described or referred to in this
Commitment and covered herein is a Fee Simple.
Title to said estate or interest in said land is at the effective
date hereof vested in:
-3.
Allan L. Schleif and Helen Schleif, husband and wife, as joint
tenants.
4. The land referred to in this Commitment is located in the County of
Wright, State of Minnesota, and described as follows:
Lot 6 and the Southeasterly 33 feet of Lot 7, as measured at
rights angles to the Southeasterly line thereof, Block 54,
Townsite of Monticello, Wright County, Minnesota.
Property known as: 3 Walnut Street, Monticello, MN 55362
.
STEWART TITLE
GUARANTY COMPANY
",
SCHEDULE B
. Commitment No. 97100113
Schedule B of the policy or policies to be issued will contain
exceptions to the following matters unless the same are disposed
of to the satisfaction of the Company:
1. Defects, liens, encumbrances, adverse claims or other matters,
if any, created, first appearing in the public records or
attaching subsequent to the effective date hereof but prior to
the date the proposed Insured acquires for value of record the
estate or interest or mortgage thereon covered by this
Commitment.
2 . STANDARD EXCEPTIONS:.
a) Facts which would be disclosed by a comprehensive survey
of the premises herein described.
b) Rights and cla~rns of parties in possession.
c) Mechanics', Contractors' or Materialmen's liens and lien
claims, if any, where no notice thereof appears of record.
SPECIAL EXCEPTIONS:
3. Taxes payable in 1997 in the amount of $836.56, which includes
$100.34 for 77-3 street improvement are paid. 1996 and prior years
are paid in full. Tax I.D. No. 155-010-054060 (homestead).
4 .
Special Assessments.
NOTE: There are special assessments owing to the City of
Monticello in the amount of $182.94 for 77-3 street improvement,
which represents a balance owing after payment of the 1997 payable
taxes. (Subject to change if not paid by November 30, 1997).
.
5. Rights of LeRoy P. Christensen and Elaine M. Christensen, husband
and wife, and Gerald L. Christensen who retain an interest in a
portion of Lot 7 pursuant to Informal Deed of Distribution
recorded February 19, 1986 in Book 313 of Deeds, Page 574 as
Document No. 460156 and Quit Claim Deed recorded February 21, 1986
in Book 313 of Deeds, Page 607.
6. Rights of Michael I. O'Connor and Mary M. O'Connor, husband and
wife, who retain an interest in a portion of Lot 7 pursuant to
Contract for Deed dated September 1, 1982, filed for record
September 14, 1982 in Book 80 of Misc., Page 824 as Document No.
368239.
7. The legal description of record as to the portion of the property
in Lot 7, i.e., the Easterly 33 feet thereof, is open to
interpretation as to exact location as the Town of Monticello is
not laid out in a North/South direction. The legal description at
Schedule A, No. 4 has been created to more clearly define the
Continued on next page
.
STEWART TITLE
GUARANTY COMPANY
'.
tit
SCHEDULE B (Continued)
Commitment No.: 97100113
portion of the property lying within Lot 7. An exchange of Deeds
with the adjoining property owner of the balance of said Lot 7
required.
8. Subject to facts that would be disclosed by a comprehensive
survey.
9. Rights of Larry A. Schleif aka Larry A. Schlief who signed the
purchase agreement as seller.
10. If you should have any questions regarding this Commitment, please
contact Linda Ops~l at 682-2023 or 4~7-6312.
.
'tit
STEWART TITLE
GUARANTY COMPANY
HRA AGENDA
. JULY 1,1998
5. Consideration to approve a resolution authorizing awarding the sale of, and providing the
form. terms, covenants and directions for the issuance of its $500.000 taxable tax
increment revenue note. series 1998 and acceptance of the written evidence for issuance of
the note.
A. Reference and background:
The Private Redevelopment Contract between the HRA and BBF Properties, Inc. was
approved and dated March 20, 1998. Schedule C of the contract was the resolution
authorizing award of sale..............
The redeveloper, Mr. Fluth, has inquired to the issuance of the note. As per the contract,
the note will be issued upon receipt from the redeveloper of written evidence satisfactory
to the Authority described in ARTICLE, Section 3.4. Mr. Fluth and his attorney, Brad
Larson, requested to be on the HRA agenda for acceptance of the written evidence. At
this time, I have received no written evidence. If no written evidence is received, the HRA
should proceed to approve the resolution as this does not authorize deliverance of the note
nor acceptance of the written evidence.
.
Enclosed is a copy of a letter written to the lender per request. Evidently per the
lender/redeveloper agreement, the second advancement of the construction loan from the
lender was subject to issuance ofthe HRA note.
B. Alternative Action:
1. A motion to approve the resolution authorizing awarding...... and accepting the
received written evidence for deliver of the note.
2. A motion to deny approval of the resolution authorizing awarding ....... and deny
acceptance ofthe received written evidence for deliver of the note.
3. A motion to table any action.
4. A motion to approve the resolution authorizing awarding ....... and tabling any
action relating to acceptance of the written evidence.
C. Recommendation:
Recommendation is to approve the resolution and acceptance of written evidence subject
to review of documentation.
.
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HRA AGENDA
. JULY 1,1998
D. Supporting Data:
Excerpt from contract and copy resolution and note.
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HI: 41
6124484676
WILSON DEVELOP SERV
PAGE Ell
WILSON DEVELOPMENT SERVICES
'HELPING CITIES AND BUSINESSES GROW"
July pI, 1998
MEMO TO:
Olive Koropchak
Barry Fluth
Steve Bubul
Dan Wilson
Cub Foods TIF Project
Relocation Eligloility Costs
Fax Transmittal
295-4404
295-2720
337-9310
FROM:
RE:
I have had discussions with Mr. Fluth & Mr. Bubul Tuesday, relative to relocation and other TIF
eligibility costs incurred to date in advance of a TIF note.
Mr. Fluth faxed me a sheet (attached) detailing actual costs to date. I was requested as relocation
consultant to comment upon which costs are eligtble relocation costs. I intexpret that request to mean
relocation costs, not acquisition costs under the Unifonn Real Property Acquisition and Relocation
Act as adopted by Minnesota Statues 117.52.
.
Apparently, the developer or one of his representatives negotiated relocation settlement packages with
each tenant I was not a part of those discussions, so I can not comment upon how settlement was
reached or sufficiency of any payment.
I can say that the amount paid would have been eligible amounts had a more traditional business
relocation claw approach would have been used. Hence, they appear to comply with the terms of the
development agreement.
The only exception to this is the $293,000 payment made to the Skillet Resta.uranL That claim
represented the buyout of a 25 year leasehold interest. The purchase of a leasehold interest is an
acquisition cost, not a relocation cost Apparently this settlement was reached in a global marmer
approach, rather than individual line items. Hence, there is no detailed paper trail to separate costs
items.
In the absence of any detail, I have attempted to arrive at a restaurant relocation cost that is reasonable
under the traditional approac:b. I started by looking at how much Relocation costs would have to be in
order to reach $500,000 in eligible TIF costs.
Total Relocation Costs Submitted
Demolition, Utilities and Gtading
$ 405,583.65
$ .156.957 00
$ 562,540.65
$ 293.000.00
$ 269,540.65
Minus the Skillet Resta.urant
Remaining TIF Eligible Costs
.
510 Chestnut St., Suite 200, Chaska, MN 55318
Office: (612) 448-4630 FAX: (612) 448-4676
El7/El1/1998 1E1:41
6124484676
.
Tn' Costs Yet To Be Incurred
Parking Lot
Site Light
Soil Test
Landscaping
Remaining 1lF
Total TIF Eligible
MAX TIF Note
Skillet Relocation
WILSON DEVELOP SERV
PAGE El2
$ 100,000.00
$ 36,000.00
$ 1,600.00
$ 17.000.00
$ 154,600.00
$ 424,140.65
$ 500.000 00
$ 75,859.35
The question is whether the Skillet relocation could have been completed for $75,859.35. The answer
is yes, this is a reasonable conclusion. The $75,000.00 would cover equipment disconnect, reconnect,
cartage, business reestablishment, searching, planning the new site and printed materials.
In terms ofTIF eligible costs incurred to date, my finding is as follows:
Relocation Costs Accepted As Stated
Skillet Relocation Carried OUt
Total Relocation
Additional TIF Eligible Costs
Total TIF Eligible Costs to Date
.
.
$ 112,583.65
$ 75.859.36
$188,443.00
$ 156.987.00
$ 345,400.00
07/01/1998 10:41 6124484676
~un-~o-ge lO;50A
WILSON DEVELOP SERV
MONTICEllO MALL REDEVELOPMENT COSTS
.
June 29. 1998
PAYEE
JME
SKILLET RESTAURANT
HAll.MARk
WRIGHT WAY
NORTHSTAR
MONTiCeLLO OPTICAL
COMPANION PETS
BARBARA LEE DANCE
RENAISSANCE WEST
H & A SLOCK
WEIGHT WATCHERS
TOTAL
SUBMITTED BY:
BBF PROPERTIES, IHe
19677180TH ST.
BIG LAKE, MN 5530&
BARRY AND BARBARA FLUTH
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AMOUNt
DETAI... ·
$158,157.00
1213.000.00
"7,"8.2.
03,2t'.H
$5.000.00
$3,000.00
$3,000.00
$3,000.00
$3,000.00
$24.818.38
1200.00
$582.540.85
~(}5;m,.r ;: {2~/tit::~r'-vYl
TO: MONTlCeU.O HRA
PO BoX 1147
MONTICELLO, MN S5~
PAGE 03
P.Ol
DEMOL.ITION, uTILmes. GRADING
RELOCATION
FtELOCA TION
RILOCATION
RELOCATION
RELOCATION
RELOCATION
RELOCATION
RELOCATION
RELOCATION
RELOCATION
· SEE ATTACHED INVOICES FOR FURTHER DETAIL
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ARTICLE III
Public Redevelopment Costs
Section 3.1. Status of Redevelopment Property. The Redevelopment Property is currently
owned by the Redeveloper or a related entity. The Authority shall have no obligation to acquire
the Redevelopment Property or any portion thereof.
Section 3.2. Public Redevelopment Costs. The Redeveloper shall demolish all existing
buildings on the Redevelopment Property, and shall relocate all existing tenants and occupants
on the Redevelopment Property in accordance with Section 3.3 hereof. The Redeveloper shall
also undertake the following site improvements in connection with construction of the Minimum
Improvements: utilities, soil correction, parking lot, curb, landscaping, excavation and grading,
site lighting. The cost of demolition ("Demolition Costs"), relocation ("Relocation Costs"), and
the above-described site improvements ("Site Improvement Costs"), together with Administrative
Costs as defined hereafter, shall be referred to herein as the "Public Redevelopment Costs." In
order to make the development of the Minimum Improvements economically feasible, the
Authority will reimburse the Redeveloper for the Public Redevelopment Costs in the maximum
amount of $500,000, in accordance with the terms of Section 3.4 hereof.
Section 3.3. Relocation. (a) The Redeveloper shall be responsible for the relocation of
all tenants and occupants of the Redevelopment Property, including the provision of any
relocation benefits and payments. The Redeveloper shall consult with a relocation consultant,
approved by the Authority, regarding the relocation benefits and payments to be provided to them
in exchange for their relocation from the Redevelopment Property. Amounts reimbursable as
Relocations Costs under this Agreement shall be limited to those costs approved by the relocation
consult, and shall expressly not include any amounts constituting costs of acquisition of any
tenant's or occupant's leasehold interest or fixtures.
(b) The Redeveloper shall provide to the Authority written agreements, in a form
approved by the Authority, from each owner and occupant of the Redevelopment Property, under
which such owners and occupants agree to be relocated from the Redevelopment Property on
terms contained in the agreements. In addition, the Redeveloper shall furnish to the Authority
a written certification from its attorney that waivers of relocation benefits contained in such
agreements were explained to each owner and occupant in accordance with the terms of the
agreement.
(c) Without limiting the Redeveloper's obligations under Section 8.3 hereof, the
Redeveloper will indemnify, defend and hold harmless the Authority, the City, and their
governing body members, employees, agents and contractors from any and all claims for benefits
or payments arising out of the relocation or displacement of any person from the Redevelopment
Property as a result of the implementation of this Agreement.
Section 3.4. Financing of Public Redevelopment Costs. (a) To finance reimbursement
of a portion of the Public Redevelopment Costs, the Authority shall issue and the Redeveloper
shall purchase the Note in the maximum principal amount of $500,000 in substantially the form
SJ81355n
MN190-67
7
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set forth in the Authorizing Resolution attached as Schedule C. The Authority and the
Redeveloper agree that the consideration from the Redeveloper for the purchase of the Note shall
consist of the Redeveloper's payment of the Public Redevelopment Costs in at least the principal
amount of the Note. The interest rate on the Note shall be 7.5%, and the final maturity of the
Note shall be no later than February I, 2020.
(b) The Authority shall deliver the Note upon receipt from the Redeveloper of written
evidence satisfactory to the Authority that the Redeveloper has paid Public Redevelopment Costs
in at least the principal amount of the Note, provided that evidence of Site Improvement Costs
shall be accepted by the Authority and allocated to the principal amount only to the extent that
the aggregate Relocation Costs, Demolition Costs and Administrative Costs incurred by the
Redeveloper are less than $500,000. Evidence of each category of Public Redevelopment Cost
shall include paid invoices or comparable evidence of payment, and in the case of Relocation
Costs shall include written certification from the relocation consultant as to the amount of such
costs in accordance with Section 3.3 hereof. Public Redevelopment Costs in excess of $500,000
shall be the sole responsibility of the Redeveloper.
(c) If the Redeveloper makes any payment to or on behalf of the Authority pursuant to
its obligations under Sections 3.3 or 8.3 hereof based on any and all claims filed within two years
after the date of this Agreement, and such payment is eligible for reimbursement with Tax
Increment under the TIF Act, then the Authority will issue a supplemental tax increment revenue
note (the "Supplemental Note") in the principal amount of the lesser of (i) 50% of the total
payment by the Redeveloper to or on behalf of the Authority, or (ii) $50,000. The Supplemental
Note shall be in substantially the same form and payable from the same sources as, on a parity
basis with, the initial Note; shall bear interest at the rate of 7.5% accruing from the date of
payment by the Redeveloper; and shall mature no later than February 1, 2020.
Section 3.5. Payment of Administrative Costs. The Redeveloper agrees that it will pay
all Administrative Costs as hereafter defined. For the purposes of this Agreement, the term
"Administrative Costs" means out of pocket costs incurred by the Authority 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.
Administrative Costs shall be evidenced by invoices, statements or other reasonable written
evidence of the costs incurred by the Authority. The Authority acknowledges that the
Redeveloper has deposited with the Authority the amount of $5,000 for payment of
Administrative Costs. Upon issuance of the Certificate of Completion for the Minimum
Improvements, the Authority shall return to the Redeveloper any balance of such deposit that the
Authority reasonably determines is not needed to pay Administrative Costs. Any Administrative
Costs paid by the Redeveloper are deemed Public Redevelopment Costs and may be included in
the principal amount of Note issued under Section 3.4 hereof. If at any time the Authority
determines that Administrative Costs will exceed $5,000, the Redeveloper shall pay any additional
Administrative Costs within 10 days after receipt of a written invoice from the Authority.
Section 3.6. Records. The Authority and its representatives shall have the right at all
reasonable times after reasonable notice to inspect, examine and copy all books and records of
Redeveloper relating to the Minimum Improvements, the Redevelopment Property and the Public
Redevelopment Costs.
SJ813S5n
MN190.67
8
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HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO
RESOLUTION NO.
RESOLUTION AWARDING THE SALE OF, AND
PROVIDING THE FORM, TERMS, COVENANTS AND
DIRECTIONS FOR THE ISSUANCE OF ITS $500,000
TAXABLE TAX INCREMENT REVENUE NOTE, SERIES
1998.
BE IT RESOLVED BY the Board of Commissioners ("Board") of the Housing and
Redevelopment Authority in and for the City of Monticello (the "Authority") as follows;
Section 1. Authorization: Award of Sale.
1.0 I. Authorization. The Authority and City of Monticello ("City") have heretofore
approved the establishment of Tax Increment Financing District No. 1-22 (the "TIF District")
within Redevelopment Project No.1 ("Project"), and have adopted a tax increment financing plan
for the purpose of financing certain improvements within the Project.
Pursuant to Minnesota Statutes, Section 469.178, the Authority is authorized to issue and
sell its bonds for the purpose of financing a portion of the public development costs of the
Project. Such bonds are payable from all or any portion of revenues derived from the TIF
District and pledged to the payment of the bonds. The Authority hereby finds and determines that
it is in the best interests of the Authority that it issue and sell its $500,000 Taxable Tax
Increment Revenue Note, Series 1998 (the "Note") for the purpose of financing certain public
costs of the Project. -
1.02. Issuance. Sale. and Terms of the Note. The Authority hereby delegates to the
Executive Director the determination of the date on which the Note is to be delivered, in
accordance with that certain Contract for Private Development between the Authority ~d the
Owner dated March 20, 1998 (the "Agreement"). The Note shall be sold to BBF PROPERTIES,
INC. (the "Owner"). The Note shall be dated as of the date of delivery thereof and shall bear
interest at the rate of 7.5% per annum to the earlier of maturity or prepayment. The Authority
shall receive in exchange for the sale of the Note the agreement of the Owner to pay the Public
Redevelopment Costs as defined in the Agreement.
Section 2. Form of Note. The Note shall be in substantially the following form, with
the blanks to be properly filled in and the principal amount, interest rate and payment schedule
adjusted as of the date of issue;
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UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF WRIGHT
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO
No. R-l
$500,000
TAXABLE TAX INCREMENT REVENUE NOTE
SERIES 1998
Rate
Date
of Original Issue
7.5%
The Housing and Redevelopment Authority in and for the City of Monticello (the
"Authority"), for value received, certifies that it is indebted and hereby promises to pay to BBF
PROPERTIES, INC. or registered assigns (the "Owner"), the principal sum of $500,000 and to
pay interest thereon at the above-stated rate, as and to the extent set forth herein.
1. Payments. Principal and interest ("Payments") shall be paid on August 1, 2000
and each February 1 and August 1 thereafter to and including February 1, 2020 ("Payment
Dates") in the amounts and from the sources set forth in Section 3 herein. Payments shall be
applied first to accrued interest, and then to unpaid principal.
Payments are payable by mail to the address of the Owner or such other address as the
Owner may designate upon 30 days written notice to the Authority. Payments on this Note are
payable in any coin or currency of the United States of America which, on the Payment Date,
is legal tender for the payment of public and private debts.
2. Interest. Interest at the rate stated herein shall accrue on the unpaid principal,
commencing on the date of original issue. Interest shall be computed on the basis of a year of
360 days and charged for actual days principal is unpaid. Interest accruing from the date of
original issue to the first Payment Date shall be compounded semiannually on February I and
August 1 of each year and added to principal.
3. Available Tax Increment. Payments on this Note are payable on each Payment
Date in the amount of and solely from "Available Tax Increment," which shall mean, on each
Payment Date, the Tax Increment attributable to the Redevelopment Property and paid to the
Authority by Wright County in the six months preceding the Payment Date, all as such terms are
defined in the Contract for Private Development between the Authority and Owner dated as of
March 20, 1998 (the "Agreement"), subject to the following limitations and conditions:
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(a) Available Tax Increment does not include the first 10 percent of Tax Increment
received by the Authority during such six-month period, which amount may be retained
by the Authority and is not pledged to the Note;
(b) Available Tax Increment does not include the next $22,500 in Tax Increment received
by the Authority during such six-month period, which amount may be retained by the
Authority and is not pledged to the Note; and
(c ) Available Tax Increment includes the balance of Tax Increment received by the
Authority during such six-month period and available after operation of clauses (a) and
(b) above; and
Available Tax Increment shall not include any Tax Increment if, as of any Payment Date,
there is an uncured Event of Default under the Agreement. The Authority shall have no
obligation to pay principal of and interest on this Note on each Payment Date from any source
other than Available Tax Increment and the failure of the Authority to pay the entire amount of
principal or interest on this Note on any Payment Date shall not constitute a default hereunder
as long as the Authority pays principal and interest hereon to the extent of Available Tax
Increment. The Authority shall have no obligation to pay unpaid balance of principal or accrued
interest that may remain after the final Payment on February 1, 2020.
.
The Authority makes no warranty or representation that Available Tax Increment will be
sufficient to pay all or any portion of the principal or interest on this Note. The Authority's
calculation of Available Tax Increment shall be conclusive.
4. Optional Prepayment. The principal sum and all accrued interest payable under
this Note is prepayable in whole or in part at any time by the Authority without premium or
penalty. No partial prepayment shall affect the amount or timing of any other regular payment
otherwise required to be made under this Note.
5. Termination. At the Authority's option, this Note shall terminate and the
Authority's obligation to make any payments under this Note shall be discharged upon the
occurrence of an Event of Default on the part of the Developer as defined in Section 9.1 of the
Agreement, but only if the Event of Default has not been cured in accordance with Section 9.2
of the Agreement.
.
6. Nature of Obligation. This Note is one of an issue in the total principal amount
of $500,000, all issued to aid in financing certain public development costs and administrative
costs of a Project undertaken by the Authority pursuant to Minnesota Statutes, Sections 469.001
through 469.047, and is issued pursuant to an authorizing resolution (the "Resolution") duly
adopted by the Authority on July 1, 1998, and pursuant to and in full conformity with the
Constitution and laws of the State of Minnesota, including Minnesota Statutes, Sections 469.174
to 469.179. This Note is a limited obligation of the Authority which is payable solely from
Available Tax Increment pledged to the payment hereof under the Resolution. This Note and the
interest hereon shall not be deemed to constitute a general obligation of the State of Minnesota
or any political subdivision thereof, including, without limitation, the Authority. Neither the State
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of Minnesota, nor any political subdivision thereof shall be obligated to pay the principal of or
interest on this Note or other costs incident hereto except out of Available Tax Increment, and
neither the full faith and credit nor the taxing power of the State of Minnesota or any political
subdivision thereof is pledged to the payment of the principal of or interest on this Note or other
costs incident hereto.
7. Registration and Transfer. This Note is issuable only as a fully registered note
without coupons. As provided in the Resolution, and subject to certain limitations set forth
therein, this Note is transferable upon the books of the Authority kept for that purpose at the
principal office of the Authority, by the Owner hereof in person or by such Owner's attorney
duly authorized in writing, upon surrender of this Note together with a written instrument of
transfer satisfactory to the Authority, duly executed by the Owner. Upon such transfer or
exchange and the payment by the Owner of any tax, fee, or governmental charge required to be
paid by the Authority with respect to such transfer or exchange, there will be issued in the name
of the transferee a new Note of the same aggregate principal amount, bearing interest at the same
rate and maturing on the same dates.
This Note shall not be transferred to any person other than an affiliate, or other related
entity, of the Owner unless the Authority has been provided with an opinion of counsel or a
certificate of the transferor, in a form satisfactory to the Authority, that such transfer is exempt
from registration and prospectus delivery requirements of federal and applicable state securities
laws.
8. Additional Obligations. If the Authority issues the Supplemental Note as defined in
the Agreement, the pledge of Available Tax Increment hereunder shall be on a parity basis with
the Supplemental Note. The Authority shall issue no obligation secured in whole or in part by
Available Tax Increment other than the Supplemental Note, unless the pledge to such obligation
is subordinate to the pledge to this Note and the Supplemental Note.
IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions, and things required
by the Constitution and laws of the State of Minnesota to be done, to exist, to happen, and to be
performed in order to make this Note a valid and binding limited obligation of the Authority
according to its terms, have been done, do exist, have happened, and have been performed in due
form, time and manner as so required.
IN WITNESS WHEREOF, the Board of Commissioners of the Housing and
Redevelopment Authority in and for the City of Monticello has caused this Note to be executed
with the manual signatures of its Chair and Executive Director, all as of the Date of Original
Issue specified above.
Housing and Redevelopment Authority 10
and for the City of Monticello
Executive Director
Chair
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REGISTRATION PROVISIONS
The ownership of the unpaid balance of the within Note is registered in the bond register
of the City Finance Director, in the name of the person last listed below.
Date of
Registration
Signature of
City Finance Director
Registered Owner
BBF Properties, Inc.
Federal Tax J.D. No. 41-189-3246
Section 3.
Terms. Execution and Delivery.
3.01. Denomination. Payment. The Note shall be issued as a single typewritten note
numbered R -1.
The Note shall be issuable only in fully registered form. Principal of and interest on the
Note shall be payable by check or draft issued by the Registrar described herein.
3.02. Dates; Interest Payment Dates. Principal of and interest on the Note shall be
payable by mail to the owner of record thereof as of the close of business on the fifteenth day
of the month preceding the Payment Date, whether or not such day is a business day.
3.03. Registration. The Authority hereby appoints the City Finance Director to perform
the functions of registrar, transfer agent and paying agent (the "Registrar"). The effect of
registration and the rights and duties of the Authority and the Registrar with respect thereto shall
be as follows:
(a) Register. The Registrar shall keep at its office a bond register in which the
Registrar shall provide for the registration of ownership of the Note and the registration of
transfers and exchanges of the Note.
(b) Transfer of Note. Upon surrender for transfer of the Note duly endorsed by the
registered owner thereof or accompanied by a written instrument of transfer, in form reasonably
satisfactory to the Registrar, duly executed by the registered owner thereof or by an attorney duly
authorized by the registered owner in writing, the Registrar shall authenticate and deliver, in the
name of the designated transferee or transferees, a new Note of a like aggregate principal amount
and maturity, as requested by the transferor. Notwithstanding the foregoing, the Note shall not
be transferred to any person other than an affiliate, or other related entity, of the Owner unless
the Authority has been provided with an opinion of counsel or a certificate of the transferor, in
a form satisfactory to the Authority, that such transfer is exempt from registration and prospectus
KOEBNG145770
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delivery requirements of federal and applicable state securities laws. The Registrar may close the
books for registration of any transfer after the fifteenth day of the month preceding each Payment
Date and until such Payment Date.
(c) Cancellation. The Note surrendered upon any transfer shall be promptly cancelled
by the Registrar and thereafter disposed of as directed by the Authority.
(d) Improper or Unauthorized Transfer. When the Note is presented to the Registrar
for transfer, the Registrar may refuse to transfer the same until it is satisfied that the endorsement
on such Note or separate instrument of transfer is legally authorized. The Registrar shall incur
no liability for its refusal, in good faith, to make transfers which it, in its judgment, deems
improper or unauthorized.
(e) Persons Deemed Owners. The Authority and the Registrar may treat the person
in whose name the Note is at any time registered in the bond register as the absolute owner of
the Note, whether the Note shall be overdue or not, for the purpose of receiving payment of, or
on account of, the principal of and interest on such Note and for all other purposes, and all such
payments so made to any such registered owner or upon the owner's order shall be valid and
effectual to satisfy and discharge the liability of the Authority upon such Note to the extent of
the sum or sums so paid.
.
(f) Taxes. Fees and Charges. For every transfer or exchange of the Note, the
Registrar may impose a charge upon the owner thereof sufficient to reimburse the Registrar for
any tax, fee, or other governmental charge required to be paid with respect to such transfer or
exchange.
(g) Mutilated. Lost, Stolen or Destroyed Note. In case any Note shall become
mutilated or be lost, stolen, or destroyed, the Registrar shall deliver a new Note of like amount,
maturity dates and tenor in exchange and substitution for and upon cancellation of such mutilated
Note or in lieu of and in substitution for such Note lost, stolen, or destroyed, upon the payment
of the reasonable expenses and charges of the Registrar in connection therewith; and, in the case
the Note lost, stolen, or destroyed, upon filing with the Registrar of evidence satisfactory to it that
such Note was lost, stolen, or destroyed, and of the ownership thereof, and upon furnishing to
the Registrar of an appropriate bond or indemnity in form, substance, and amount satisfactory to
it, in which both the Authority and the Registrar shall be named as obligees. The Note so
surrendered to the Registrar shall be cancelled by it and evidence of such cancellation shall be
given to the Authority. If the mutilated, lost, stolen, or destroyed Note has already matured or
been called for redemption in accordance with its terms, it shall not be necessary to issue a new
Note prior to payment.
.
3.04. Preparation and Deliverv. The Note shall be prepared under the direction of the
Executive Director and shall be executed on behalf of the Authority by the signatures of its Chair
and Executive Director. In case any officer whose signature shall appear on the Note shall cease
to be such officer before the delivery of the Note, such signature shall nevertheless be valid and
sufficient for all purposes, the same as if such officer had remained in office until delivery.
When the Note has been so executed, it shall be delivered by the Executive Director to the Owner
in accordance with the Agreement.
KOEBNG145770
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Section 4. Security Provisions.
4.01. Pledge. The Authority hereby pledges to the payment of the principal of and
interest on the Note all Available Tax Increment as defined in the Note.
Available Tax Increment shall be applied to payment of the principal of and interest on the Note
in accordance with the terms of the form of Note set forth in Section 2 of this resolution.
4.02. Bond Fund. Until the date the Note is no longer outstanding and no principal
thereof or interest thereon (to the extent required to be paid pursuant to this resolution) remains
unpaid, the Authority shall maintain a separate and special "Bond Fund" to be used for no
purpose other than the payment of the principal of and interest on the Note. The Authority
irrevocably agrees to appropriate to the Bond Fund in each year Available Tax Increment
necessary to pay principal and interest due on the Note in such year. Any Available Tax
Increment remaining in the Bond Fund shall be transferred to the Authority's account for TIF
District No. 1-22 shall be transferred to .the Authority's account for the TIF District upon the
payment of all principal and interest to be paid with respect to the Note.
Section 5.
Certification of Proceedings.
5.01. Certification of Proceedings. The officers of the Authority are hereby authorized
and directed to prepare and furnish to the Owner of the Note certified copies of all proceedings
and records of the Authority, and such other affidavits, certificates, and information as may be
required to show the facts relating to the legality and marketability of the Note as the same
appear from the books and records under their custody and control or as otherwise known to
them, and all such certified copies, certificates, and affidavits, including any heretofore furnished,
shall be deemed representations of the Authority as to the facts recited therein.
Section 5. Effective Date. This resolution shall be effective upon full execution of the
Agreement.
KOEBNG145770
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June 15, 1998
MONTICELLO
Mr. Joseph J. Fobbe
Vice President Business Banking
US Bank
1010 West St. Germain Street
St. Cloud, MN 56301
Re: Contract for Private Redevelopment between the Monticello HRA and BBF Properties,
Inc.
Dear Mr. Fobbe:
.
As per the Contract for Private Redevelopment between the Housing and Redevelopment
Authority (ERA) in and for the City of Monticello, Minnesota, and BBF Properties, Inc., the
Authority will deliyer a Note in the maximum principal amount of $500,000 upon receipt from the
Redeveloper of written evidence satisfactory to the Authority as described in ARTICLE ill,
Public Redevelopment Cost~, Section 3.4 of the Contract.
In recent conversation with the Redeveloper, it is my understanding the Redeveloper plans to
provide the required written evidence for the Authority to review for acceptance and to authorize
award of the Note at their regular meeting of July 1, 1998, 7:00 P.M. Assuming the written
evidence is satisfactory to the Authority, I foresee no delays in deliverance of the Note.
Ifl can be of further assistance, please do not hesitate to call me at 612-271-3208.
Respectfully yours,
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR 1HE CITY OF MONTICELLO, MINNESOTA
C)~\\dI~.D~
Ollie Koropchak
Executive Director
.
cc:
TIF File
HRA Attorney Steve Bubul
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
.
.
.
HRA AGENDA
JULY 1, 1998
6. Consideration to approve general guidelines and level of TIP assistance for proiect no. II
within Redevelopment District No. 1-22.
A. Reference and backiround:
Greg Hayes, Shingobee, Inc., and the city staff have met with Mark Ruff, Ehlers &
Associates, Inc., to discuss financing options for the proposed 2-floor 8,000 sq ft office
building on West Broadway. Site of redevelopment is the Amoco Station. Shingobee
request remains at $150,000 up front in order make the project cash flow.
The tax increment cash flow using the new I/C classification rates project a total increment
of$150,000 NPV over 25 years @ 7.5% interest rate. This is 90% of the increment.
At a meeting attended by Mayor Fair, Commissioner Andrews, Mark Ruff, Greg Hayes,
Rick Wolfsteller, and Koropchak, two options were discussed:
Option One: The HRA issue a purchase money mortgage to Paul Bjorklund for
$150,000 for the Amoco site with perhaps $35,000 to $50,000 up-front
and remaining $115,000 to $100,000 over 7 years. However, this would
require a tax increment guarantee and/or an assessment agreement from
Shingobee, Inc. The city would loan the $150,000 to the HRA and the
HRA would repay the city via the increment. Shingobee, Inc. was not
interested in providing a guarantee and/or an assessment agreement.
Option Two: The HRA and Shingobee create a partnership with a concept that each
entity make an investment and share in both the risk and revenues. HRA
$150,000 - Shingobee $250,000, Lender $850,000. Ruffwas not sure if an
HRA had legal authority to be a general partner or a limited partner.
Shingobee as the major investment partner would request a clause: To have
the ability to sell in five to seven years if a viable buyer was available.
Attorney Bubul informs me an BRA has no legal authority to be a
general or limited partner.
Option Three:
Although the redeveloper is not interested in providing an
assessment agreement or guarantee and the BRA has no legal
authority to be a general or limited partner, Attorney Bubul
will be present to outline an option whereas the redeveloper
agrees to pay the BRA a certain percentage once the
redeveloper meets a certain level of return.
1
BRA AGENDA
. JULY 1, 1998
The lIRA and city needs to determine the uniqueness and value of this project?
1. TIP District No. 1-22 was established for the purpose to remove blighted
areas.
2. Expenditures are for acquisition and/or demolition without relocation
costs.
3. Project sets a quality design standard for downtown redevelopment.
4. Project fits the downtown revitalization plan.
5. Private/public investment into the community.
6. HRA funded $53,000 beyond the projected 25-year increment revenue to
redevelop old Monticello Ford, Steltons, Jones, and O'Connor sites.
7. HRA invested $175,000 for the Katzmarek property and $40,000 for the
Gille property, this beyond the TIF District in order to make the Prairie
West redevelopment project work.
B. Alternative Action:
1.
A motion to approve preliminary concept to provide up-front TIP
assistance in the amount of$150,000 to Shingobee with no guarantee or
assessment agreement.
.
2.
A motion to decline up-front TIP assistance for the redevelopment of the
Amoco station (Shingobee).
3. A motion to approve preliminary concept as outlined by Attorney Bubul.
4. Table any action.
e. Recommendation:
Although the $150,000 deviates from the HRA 45/55 split of increment, the project meets
the criteria for a redevelopment project. This parcel is perhaps the most blighted parcel in
the downtown area. Ehlers, Attorney Bubul, and Koropchak: recommend the lIRA not
provide up-front TIP assistance with no guarantee or assessment agreement. The real
question is "how important is this project (replacement of a blighted gas station with a
quality office building) to the city or HRA T' If TIF is declined certainly time and effort
where considered to make the project work.
D. Supporting Data:
eopy of the TIF cashflow using the classification rates.
.
2
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.
.
JUN 11 '98 04:53PM EHLERS & ASSOCIATES
061"138 MonUc141O flRA: 8.000 S.I, BUilditlg at 7.5% willi New RIlle
CITY OF MONTICJ.:LLO, MINNESOTA
T.U'. CASH "'LOW ASSUMP"I".O!"JS
Interest Rate
Tax tXlenslon Flate!
Inflation RaIO!
"IN
155-010-036130
155.010.0361<10
TOIBI
BASil: VAl.UE 'IN.'ORMATION
Markljl Class
valuo RaIl!
______uu.. , ';s,,'60":i.4s%!3.5%
_._ __ ___.~Q...400. .g,~5"&!3):i%
1 05 .500
7.Goo%
1.12
0.0000"10
Ta.
Cap<leity
468
2,'17
2,des
PROJECT VALUe IN}' RMAnON
Typo of T<IlC In"rement i$lrid: Redavalopment
Typo 01 OQvolopmllnt: Offioe
Nurl.b..r 01 Buildinll SQU;lra F...,: 8.000
I!Sllm'ated Markol Valuo 01 NOW ProjlX:t:
ClUB fillue on first $150.000 01 M:!Irklll Value
Clus filal, MarkiU ValUll ,. S150.OOO
Estimated Ta~ CapaeilY:
Ea~malad T8.I(81:
A.s8MIors Markel Value/s.!.
Taxellls.f.
2.45%
3.50%
E1\lanl and ASsociates. I"~.
540.000
17.~5
Hl,404
$67.50
12.43
Pay '37 Frozao Flala
P.2/3
. Estimated Pay 98 T;I~ Capa<::ity
Pay 00
Pay 00
Pog" 1 AMOC03.WK4
JUN 11 '98 04:53PM EHLERS & ASSOCIATES P.3/3
061' 1108 MOnU~MO HRA; 6,000 i,I, SUMdlnQ et 7.5'10 with N.w Ra",
CITY OF MONTICEl.I.O, MINNESOTA
TAX INCREMENT CASH FLOW
. Base Project Cap,u,o~-'" $\ij,.'i.Ann~1 Admi". Semi.AnnuAl 100.00% -c.-'~ 1.i-.o::'. ; -- y~--
Pl!filIOO BE;GINNING Tax Tax Tal( GrOSll T<l. al Net TalC of PERIOD ENDING
Vr!'.. Mti'l. Vr. C~pa~i.tY .. .9~clty Capa~llv Incr9m,!.o:tI. , .. 1,0,00"10 Incremllnt Increment NPV 5.&0% Increment Vrs. Mlh. Yr.
0.0 0$001 1&68 2.585 2.585 0 0 .. ".0; 0 .- -- .'-'0. . 0,0 0:5-02.01 1999
0.5 ON) 1 1&99 2.$95 2.585 0 0 0 0 0 o 0.0 1.0 01l-01 1999
1,0 09.0' 1999 0 0 0 0 o 0.0 1,5 02.01 2000
1.5 02.01 2000 2.585 17,325 14.740 8.255 (825) 7,429 7.429 6.412: 41S 0.$ 2.0 08-01 2000
2,0 08-01 2000 8,255 (825) 7,429 7.4.?9 1.2.59.2 413 1.0 2.5 02.0' 2001
2.5 02.01 2001 2.585 17.~25 14,740 8.255 (825) 7.429 7.~9 lll,G49 413 1.5 3.0 06.01 ZOOl
3.0 08.01 2001 8,255 (62$) 7.4211 1,429 ~4.<i90 413 2.0 3.5 02-0' .2002
3.5 02..0 1 200.2 2.SllS 17,325 14.140 8,255 (825) 7,4251 7,~9 29.8.24 413 2.~ 4,0 08-01 200.2
4.0 08.01 2002 8,255 (825) '1,4211 7.429 35,158 413 3,0 4.5 02.01 2003
4.5 02.01 2003 2.SS! 17.325 14,740 8,255 (825) 7,429 7,429 40,299 413 3.5 5.0 08-01 2003
5.0 08.01 2003 8,.255 (825) 7,428 7.4?9 <15,254 413 4,0 5.$ 02.01 2004
5,5 02.01 2004 2.585 17.325 14,740 8.255 (825) 7,429 7,429 50 ,030 413 4.$ 6.0 08-01 2004
$,0 OS.01 2004 6.255 (825) 7,4211 7.4Jl9 54,834 <113 5.0 6.1:i 02-01 2005
8.5 02oC11 2005 2,585 17,325 14.740 9..255 (825) 7.429 7.l12~ 59.07' 413 5.5 7,0 OS.Ol 2005
7,0 08.01 <'005 8,2sG (625) 7,429 7.429 63,348 413, 6.0 '1.5 02-01 2006
7,5 02.01 2006 2,585 17.325 1<1.740 6,255 (825) 7,d29 7.4:19 ll7,470 413 6.5 8.0 06-01 2006
8.0 08.01 2006 8,25G (825) 7.429 7,429 11.443 413 7.0 8.5 02.01 2007
8_5 02.01 2007 2,585 17 ,3210 '4.7.10 8,255 (92$) 7.429 7,4~9 75.273 413 7.5 9.0 06.01 2007
9.0 08'01 2007 8.255 (925) 7.429 7,429 78.964 413 8.0 9.5 02.0' 2008
9,5 02.01 2008 2.585 17.3.25 14,740 8.255 (825) 7.429 7,429 82,521 41:':1 8.5 10.0 0/1.0' 2008
10,0 08.01 2008 8,2G5 (825) 1,.129 7,429 85,9!il 413 9.0 10.5 02.01 2009
10.5 02-01 2009 2.585 17.325 14,140 8,255 (825) 7,429 7.<129 89,256 413 9.5 ";0 08-01 2009
1'.0 08.01 2009 8,255 (8.25) 7,429 7.429 92.442 413 10,0 11,5 02.01 2010
11.5 02-01 2010 ..2,585 17,325 14,740 6,255 (825) 7,429 7,42il 95.512 413 10,5 12,0 08-01 ..2010
12.0 08-01 2010 6,255 (1125) 7.429 7,429 98,472 413 11,0 12,5 02.01 .2011
12.5 02-01 2011 2,585 17,325 14.740 8,255 (825) 7,429 7,429 101,324 413 11.5 13,0 oe-Ol 2011
13.0 08-01 2011 8,255 (825) 7,420 7,429 104,014 413 12.0 13,5 02-01 2012
13.5 02.01 2012 2.585 11.325 14,740 8.255 (925) 7,429 7,429 108,724 413 12,G 14.0 08-01 2012
14.0 08.0' 2012 8.255 (8..25) 7,429 7,'129 10il.278 413 13,0 14,5 02.01 2013
14,5 02-01 2013 2.585 17,3.2G 14,740 8.255 (825) 7,429 7,429 111,700 413 13.5 15,0 08.01 2013
15,0 08-01 2013 8.255 (825) 7,429 7.429 114,113 413 H..O 15.5 02.01 2014
15,5 02-0' 2014 2,585 17,325 14,740 8,255 (825) 7,429 7.429 '16,401 413 1<1.5 16.0 08.01 2014
16,0 08-01 201" 11,255 (825) 7,429 7,429 .Ul\..6.Q.S 413 15.0 '6,5 02.01 2015
16,5 02-01 2015 2,565 17,325 14,740 8,255 (825) 7,429 7.429 120.730 413 15.5 17,0 09.01 2015
17,0 09-01 2015 8,255 (825) 7,<129 7.429 122,778 413 '8.0 17.5 02.01 20'8
17,5 02.01 2016 2.585 17,325 14,740 8,255 (825) 7.42'3 7.429 121.752 413 16.5 18,0 08.01 2016
. 18.0 M.Ol 20'6 8.255 (825) '-=L ,<2, 126.651:i 413 17.0 18.5 02.01 2017
18.5 02.01 201' 2.585 17.325 14.740 8.255 (825) 7,429 7.429 128.489 413 17,5 19.0 08.01 2017
19.0 08,01 11.017 6,255 (825) 7,429 7.429 130.257 '1131 18.0 19,5 02-01 2018
19.5 02.01 2019 2.585 17.325 14,740 1l.25S (825) 7,429 7.<129 131.960 413 18,5 20.0 08-01 .2018
20.0 08.01 :2018 8,255 (825) 7.429 7,42B 133,603 413 19,0 20.5 02.01 2019
20.5 02.01 2019 2.I.8S 17,325 14,740 8,255 (825) ._..;, ::;: -. ~ :~~.; 135,185 413 19.5 21.0 OB-Ol 2019
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.
1;111618 end A&SOCi~la&, Inc.
Page 2 AMOC03,WK4
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HRA AGENDA
JULY 1, 1998
7. Consideration of a counteroffer for the property located at 225 Front Street.
A. Reference and Background.
Enclosed is a copy of the HRA minutes of November 5, 1997, where the HRA made a
motion to offer an "option to purchase" in the amount of $130,000 as is for the property
located at 225 Front Street. The appraisal value was $165,000. As you recall, Mrs.
Carlson previously informed me that they were soliciting an independent appraisal.
The June 10 letter from the Carlson's attorney is enclosed as wett as the HRA response.
The attorney responded with the June 17 letter and again the HRA responded. The lIRA
response letters were reviewed by legal counsel prior to mailing. Please note the
confidentiality ofHRA appraisals and the suggestion not be exchange appraisals.
Mrs. Carlson did call and ask of the date of the HR.A meeting. Although I have not heard
from the Carlson or their attorney, this agenda item appears has an update for possible
consideration of a counteroffer.
B. Alternative Action:
1.
No action necessary, ifno counteroffer is submitted.
2. A motion to accept a counteroffer with terms as fottows .".........
3. A motion to hold firm to the HRA offer of $130,000 as per the Option Agreement
and Purchase Agreement.
4. A motion to table any action.
C. Recommendation:
Without knowledge to the terms of a counteroffer, the only recommendation is to ask
what are the various items the Carlson's wish to retain. It is not recommended the HRA
propose an exchange of appraisals until after an agreement is reached between the buyer
and setter. This has been the past practice of the HRA.
D. Supportini Data:
Copy of the letters, city planner's memo, and copy ofa survey.
Copy of option agreement and purchase agreement.
1
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lIRA MINUTES
NOVEMBER 5, 1997
9. Consideration to review for discussion the first draft: of an action plan endorsing the
council vision and policies.
Brad Barger made a motion to table this itenifor the December 3 HRA agenda. Darrin
Lahr seconded the motion and with no further discussion, the motion passed unanimously.
10. Consideration to authorize payment ofHRA monthly bills
Brad Barger made a motion authorizing payment of the regular HRA monthly bills and
authorized disbursal of the October 13 Hoisington invoice of$15,895.97 subject to
approval by the MCP for satisfaction of work and completion. Bob Murray seconded the
motion and with no further discussion, the motion passed l1J1animously.
11. Report by Executive Director.
Report was accepted by the commissioners. Departure time to the NAHRO conference
was changed from 7:15 to 7:00 a.m.
~
.
Consideration to review appraisals for properties located at 225 West River Street and
225 Front Street for potential acquisition.
a) 225 Front Street - Commissioners compared the appraisal value of$165,000 to the
estimated market value of$125,600. The land appraised at $75,000. Frie agreed the
property was unique because ofit's location on the river. However, he felt the appraisal
did not have comparable sales of properties on the river and the appraisal listed the
property outside the flood plain. Frie gave an example ofa West River Street property
consisting of 1,500 sq ft and two lots which sold for $129,500. A new home was build on
the second lot and the original home and lot was resold. Murray felt the roof should be
inspected by a structural engineer. Other members agreed Carlson's insurance should
cover the roof damage. Barger felt this property was key to the redevelopment of the
river and downtown; however, he noted the taxpayer's money must be spend wisely.
Darrin Lahr made a motion to offer an "option to purchase" in the amount of $130,000 as
is for the property located at 225 Front Street. Purchase Option to expire in five years,
the HRA has the right to exercise the option within the five years with a six-month notice
to the setter to vacate. An annual payment of$l,OOO does not apply to the purchase price.
lIRA garage located at 220 Front Street is available to the seller at no fee and at no
liability to the lIRA. Bob Murray seconded the motion and with no further discussion,
the motion passed unanimously.
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6
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.
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JOHNSON, LARSON, & PETERSON, P.A.
ATTORNEYS AT LAW
JAN C. LARSON+
JOHN T. PETERSON+
JUHL S. HALVORSON
CINDI S. MATT
908 COMMERCIAL DRIVE
BUFFALO, MINNESOTA 55313
(612)682-4550
FAX: (612)682-4465
WALTER S. JOHNSON
SENIOR PARTNER/RETIRED
+Real Property Law Specialist
Certified by Minnesota State Bar Association
June 10, 1998
Monticello HRA
Attn: Ollie Koropchak
P.O. Box 1147
250 East Broadway
Monticello, MN 55362
Re: Richard and Marion Carlson Property/Purchase Agreement
Dear Ms. Koropchak:
Richard and Marion Carlson have sought this office's assistance relative to that offer by
the Monticello HRA to purchase their property located at 225 Front Street West in the City of
Monticello. The Carlsons have provided me with a copy of the tendered Purchase Agreement for
the property denoting a purchase price of$130,OOO.00, containing the terms of purchase as
presently offered by the Monticello HRA. In addition thereto, I have had the opportunity to
review various correspondence received by the Carlsons from the City in its pursuit ofthe
purchase of their property.
At this point in time, the Carl sons have decided to further explore the sale of their
property to the Monticello HRA. However, in order to properly fashion a counteroffer to that
Purchase Agreement denoting a purchase price of$130,000.00, the Carlsons would ask that the
City provide them with additional information concerning the City's purpose for purchasing their
property. By "purpose" the Carlsons are not looking for the City's long range plans in the event
of purchase, but rather the short term purpose. In other words, if the City were to purchase the
Carlson property, would it be the City's intent to raze the existing structure, or to continue to use
the structure for some other City objective. The reason the Carl sons are so interested, again,
relates to the fashioning of their counteroffer. If it is indeed the City's intent to raze the existing
structure after purchase, the Carlsons would be interested in retaining various items located in the
house, some of which may otherwise be considered to be fixtures. Consequently, it would be
helpful if you could provide this information to us.
A secondary question would relate to the rationale for an offer to purchase their property
for the sum of$130,000.00. The basic question would be "What is the basis for the amount
offered?" It is the Carlson's understanding that the City has obtained an appraisal upon which it
based its offer. The Carlsons have obtained their own appraisal which differs significantly
.
.
.
June 10, 1998
Page 2
from the amount offered in the City's Purchase Agreement. Perhaps if you could provide us with
a copy of the appraisal, it would be helpful in understanding the initial amount offered.
Lastly, since you would have access to these records, I would ask if you could inform us
as to the possible existence of levied and/or pending special assessments against the property.
The Carlson's parcel identification number is 155-010-064010.
Upon receipt of the above information, the Carl sons will be fashioning a counteroffer to
the City. At the present time, the Carlsons have not yet determined whether or not they will
obtain a second appraisal for their property to assist in arising at a legitimate counteroffer. While
the counteroffer you could expect to receive in the next few weeks may contain minor negotiable
items, by in large, you should expect the Carlson's counteroffer to be firm.
The Carlsons have requested that all further correspondence and/or communications
relative to the potential purchase by the HRA of Monticello of their property be directed to this
office. Please contact me if you have any questions, otherwise, please forward the above
information at your convenience. Thank you.
May I remain,
T. Peterson
JTP:mar
cc: Richard and Marion Carlson
.
.
June 16, 1998
--
MONTICELLO
John T. Peterson
Attorney at Law
908 Commercial Drive
Buffalo, MN 55313
Re: Richard and Marion Carlson Property/Purchase Agreement
Dear Mr. Peterson:
On behalf of the Housing and Redevelopment Authority (HRA) in and for the City of Monticello,
Minnesota, this letter is in response to your letter of June 10, 1998. At this time, the HRA has
not made any final decision as to whether the structure on the property will be razed immediately
after purchase or used for some interim period of time. For your purposes, however, the HRA
would consider negotiating the terms of the tendered Purchase Agreement and Option Agreement
as it relates to the Carlson's retaining various items located in the house.
Secondly, the appraisal report for the property is confidential data under Minnesota Statutes,
Section 13.50 and does not become public until on the following occurs: (a) the negotiating
parties exchange appraisals; (b) the report is submitted to court appointed condemnation
commissioners; ( c) the report is presented in court in condemnation proceedings; or (d) the
negotiating parties enter into an agreement for the purchase and sale of the property. None of the
events has occurred that would make the report public. Therefore, at this time, I am unable to
provide the report to you.
For the purpose of evaluating the HRA's offer, however, I would point out that the 1997 Tax
Book estimated market value of the property was $125,600. In addition, the residential use of the
property is non-conforming and the property is located within the Flood Plain District. Both of
those conditions restrict the use of the property and therefore its value.
Lastly, according to the 1998 Tax Book for parcel number 155-010-064010, two special
assessments exist against the property: 86000-0 ($42.00) and 80111A-0 ($324.60.) According
to the 1998 Special Assessments Book, the remaining balance of the 80111A-0 assessment is
$304.79. It is my understanding, the 86000-0 assessment is an annual county assessment.
Monticello City Hall, 250 E. Broadway, PO Box 1147, Monticello, MN 55362-9245. (612) 295-2711 · Fax: (612) 295-4404
Office of Public Works, 909 Golf Course Rd., Monticello, MN 55362. (612) 295-3170. Fax: (612) 271-3272
.
.
.
Mr. Peterson
June 16, 1998
Page 2
Again, the HRA is open to consider negotiating the terms of the tendered Purchase Agreement
and Option Agreement or counteroffer. The regular meeting of the HRA is the first Wednesday
of each month at 7:00 p.m. in the Council Chambers. The commissioners receive the meeting
agenda the Friday prior to the meeting. Please call me at 271-3208, if you wish to be on the HRA
agenda or if you have any questions.
Respectfully yours,
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO, ~SOTA
U~ \<~G ~
Ollie Koropchak
Executive Director
cc:
File
Planning Department
Corrine H. Thomson, Kennedy & Graven
.
, '-"'
.
.
JOHNSON, LARSON, & PETERSON, P.A.
ATTORNEYS AT LAW
JAN C. LARSON+
JOHN T. PETERSON+
JUHL S. HALVORSON
CINDI S. MATT
908 COMMERCIAL DRIVE
BUFFALO, MINNESOTA 55313
(612)682-4550
FAX: (612)682-4465
WALTER S. JOHNSON
SENIOR PARTNER/RETIRED
+Real Property Law Specialist
Certified by Mi""esota State Bar Associatio"
June 17, 1998
Monticello HRA
Attn: Ollie Koropchak
P.O. Box 1147
250 East Broadway
Monticello, MN 55362
Re: Richard and Marion Carlson Property/Purchase Agreement
Dear Ms. Koropchak:
That you for letter of June 16, 1998 concerning the above-referenced matter. Please be
advised that I have forwarded same onto my clients and am awaiting a future opportunity to
discuss this matter in greater detail. Prior thereto however, 1 do wish to discuss a few items
contained in your June 16, 1998 letter.
You state in your June 16, 1998 letter that for confidential data purposes under Minnesota
Statutes ~13.50, you are unable to provide the appraisal report obtained by the City to the
Carlsons. Based upon your letter, I am unable to determine whether or not you are proposing an
exchange of appraisals in order to allow the Carlsons to examine the HRA's appraisal, or simply
that the BRA does not desire to provide the appraisal report. Secondly, I believe that you would
agree that the 1997 tax book estimated market value for the property is normally not reflective of
an accurate appraised value for the property. Third, it is my understanding from reviewing
correspondence from the Minnesota Department of Natural Resources, that the residence is well
elevated above any flood plain concerns. If you have information to the contrary, please provide
me with a copy of same. Lastly, I would ask that you provide me written information as to the
non conforming residential use ofthe property, specifically addressing "why" the residential use
is non conforming, and "who" has made such a determination.
Absent receipt of additional information from you by July 1, 1998, I would hope to have a
counteroffer to you shortly thereafter. Based upon the comments contained in your June 16,
1998 letter, I would anticipate any counteroffer to allow for the Carl sons removal of various
personal items, otherwise normally considered fixtures, from the property, to be better identified
in said counteroffer. The HRA should also expect that the Carlson's counteroffer will be quite
firm.
,
.
.
June 17, 1998
Page 2
If at all possible, it may also be advisable and helpful for the HRA to appoint an
individual with authority to negotiate the terms of a Purchase Agreement, contingent upon HRA
final approval. Although the HRA may have already done this, the only reason I point this out is
that the Car/sons are not desirous of entering into protracted negotiations for the sale of their
home which would require discussion at either regular or specially called meetings ofthe HRA
each time a counteroffer is made. It is my understanding that if fruitful or otherwise positive
negotiations appear imminent, the Carl sons intend to place the property on the open market for
sale.
J look forward to hearing from you. Again, if I have received no response from you by
July 1, 1998, J would anticipate some type of counteroffer to be forwarded to you on behalf of the
HRA shortly thereafter. Thank you.
May I remain,
JTP:mar
cc: Richard and Marion Carlson
June 25, 1998
MONTICELLO
John T. Peterson
Attorney at Law
908 Commercial Drive
Buffalo, MN 55313
Re: Richard and Marion Carlson Property/Purchase Agreement
Dear Mr. Peterson:
In response to your letter of June 17, 1998. Relating to whether the HRA is proposing an
exchange of appraisals, I am not proposing an exchange of appraisals because previously it has
not been the practice of the HRA to exchange appraisals; however, that decision is one made by
the commissioners.
.
Secondly, as it relates to the Flood Plain District and non-conforming residential use, I have
attached a copy of the memo dated October 30, 1997 from Steve Grittman, Northwest Associated
Consultants, Inc. which was submitted to the HRA. In response to your most recent request for
further information, the city planning consultant has responded according to the memo of June 24,
1998.
Again, the HRA remains open to consider negotiating the terms of the tendered Purchase
Agreement and Option Agreement as it relates to the Carlson's retaining various items located in
the house.
Please call me at 271-3208, if you have any questions or wish to be on the HRA agenda.
Respectfully yours,
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO, MINNESOTA
U~ ~G\GQ~~
Ollie Koropchak
Executive Director
cc:
File
Planning Department
Corrine H. Thomson, Kennedy & Graven
.
Monticello City Hall, 250 E. Broadway, PO Box 1 ]47, Monticello, MN 55362-9245 · (612) 295-27] 1 · Fax: (612) 295-4404
Office of Public Works, 909 Golf Course Rd., Monticello, MN 55362 . (612) 295-3170 . Fax: (6]2) 271-3272
.
.
.
NORTHWEST ASSOCIATED CONSULTANTS, INC.
MEMORANDUM
TO:
Jeff O'Neill
FROM:
Stephen Grittman
DATE:
October 3D, 1997
RE:
Monticello - Construction in the Flood Plain District
FILE NO:
191.06
I have reviewed the Ordinance regarding the construction of a detached garage accessory
to a non-conforming single family home which is potentially in the Flood Plain. Apart from
the flood plain issue, it is my opinion that a detached garage could likely be constructed.
It would require the approval of a Conditional Use Permit to allow the expansion of a non-
conforming residential unit (Subd. 3-1 [J]), and variances to setbacks from the street, and
probably the shoreline. Variances could be justifiable based upon the variance criteria
which include shallowness of lot, topography, and an inability to put the property to
reasonable use without the variance. The City has considered garages to be reasonable
use in the past.
With regard to the Flood Plain issue, the Flood Plain Management Ordinance does not
allow construction- in the Floodway (the 100 year flood area). However, it does potentially
allow fill to take the area out of the Floodway by Conditional Use Permit. The fill must be
engineered and treated with vegetation or rip-rap to avoid erosion, and must not negatively
impact the hydraulic levels of the remaining floodway. An engineer would have to give an
opinion that the fill qualified in this way. To qualify for garge construction, this fill must be
placed to at least the "regulatory flood elevation": an elevation one foot above the
floodway elevation.
This would then allow the construction of a garage. Since the resulting condition would
still likely be Flood Fringe, the garage would require a CUP for construction in the Flood
Fringe. This garage must be designed to avoid flood damage, and the fifteen feet
surrounding the structure would also have to meet the regulatory flood elevation for flood
protection. All of this would require engineer's certification beforehand, and as-built
.
.
.
certification afterward.
In summary, the property owner would need the following:
CUP for expansion of a non-conforming residential use.
Variances from setbacks, as appropriate.
CUP for placement of fill in the Floodway.
CUP for construction of a garage in the Flood Fringe.
As noted above, engineering would be necessary for each step, well beyond the usual
reuqirements for a simple building permit for a garage. Finally, the Flood Plain District
expressly permits the City to impose time limits on Conditional Use Permits.
~, .,:. . .it,,'
-<<
:$
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JUN-24-1998 10:58
612 595 9837
P.01/01
NAC
N
NORTHWEST ASSOCIATED CONSULTANTS
COMMI.INITTPLA"'NIN<;; - DESIC'" - .....R...!!:,. IIlEliE"ReH
MEMORANDUM
TO:
Ollie Koropchak
FROM:
Stephen Grittman
DATE:
June 24, 1998
RE:
Monticello - Carlson Property
FILE NO:
191.00
In response to the issues raised by John Peterson on the Carlson property, we should
answer as follows:
Third:
The elevation of the floodplain and the elevation of the house came
into question based on a topographic map supplied by WSB for
another project they were working on at the time. I remember looking
at it at City Hall prior to writing the memo dated 10-30-97. This, in my
view, would be a matter that can only be resolved for certain with a
topographic survey of the Carlson property, but the WSB map
seemed to the best information available at the time. The 10-30-97
memo was written based on the assumption that the WSB map
seems to indicate that the floodplain extends through much of the
neighborhood. The standards mentioned in the memo would come
into play if the property is determined to be in the floodplain.
The use of the property - single family residential - is not necessarily
non-conforming. It is the single family structure that is legal non-
conforming based on setback violations from both Front Street and
(probably) from the shoreline of the Mississippi River. It would also
be a non..conforming structure if it is, in facti below the regulatory
flood protection elevation. as noted above and in the 10-30-97 memo-
Fourth:
Let me know if you need any additional information to answer the questions raised by Mr.
Peterson.
TOTAL P.01
..... 8-1 1-1q97 ~:~RAM
FDnM nTTn ^~~nrT^TL~ rn~ ~~~~
.
TTO
SSOCIATES
ENGINEERS & LAND SURVEYORS, INC.
July 12, 1993
Richard and Marion Carlson
225 Front Street
Monticello, MN 55313
Re: Job No. 93372 - Elevation of buildings on Lots 1-5, Block 64, City of Monticello.
Dear Richard and Marion;
As per your request, we have obtained elevations of your home, garage and property, they are
as follows:
1) Basement floor elevation = 908.09
2) First floor elevation = 917.13 feet
3) Top of sidewalk at entrance to basement = 913.19 feet
,4) Garage floor slab = 913.87 feet
5) Centerline of Front Street on East side of home = 912.77 feet.
The 100 year flood elevation of the Mississippi River in this area according to the Federal
Emergency Management Agency Flood Insurance Rate Map is 908.00 feet. This data was
obtained from the City of Monticello building inspections department. This means that the
basement floor is 0.09 feet aboYt the 100 year flood elevation of the Mississippi River.
If you have any questions, feel f.rce to contact me..
I hearby certify that this survey, plan or report was
prepared by me or under my direct supervision and
that I am a duly Registered Land Surveyor under the
laws of the ate of i esota.
Land Surveyor
.
C
Date: 7/\'2/C\3
. ,
Registration No. 18420
9 WEST DIVISION STREET - BUFFALO, MINN. 55~13 - (612) 682-4777
.
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C-~
\ \ ~ \ <; -<1. 1
c
OPTION AGREEMENT
This Agreement is made this _ day of , 1997, by and between
RICHARD CARLSON and MARION CARLSON, husband and wife ("Owners") and HOUSING
AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO, a
public body corporate and politic ("HRA").
Recitals
A. The Owners are the fee owners of certain real estate (the "Option Property") located at
225 Front Street, Monticello, Wright County, Minnesota and legally described as follows:
Lots 1, 2, 3, 4 and 5, Block 64, TOWNSITE OF MONTICELLO
B.
The Owners and HRA desire to enter into this Option Agreement concerning the Property.
Ae:reement
1. Grant of Option. For and in consideration of the sum of One Thousand Dollars paid by
the HRA to Owners, the receipt and sufficiency of which is hereby acknowledged. and in
consideration of the mutual covenants and conditions herein contained, the Owners hereby grant
. to the HRA the right and option to purchase from the HRA the Option Property.
2. Term of Option. The option to purchase herein granted shall commence on the date of
this Agreement and shall continue for a period of five years after the date hereof (th~ "Term").
3. Annual Payments for Option. HRA shall pay to Owners the sum of One Thousand
Dollars on or before each of the next four succeeding anniversary dates of this option agreement.
The sums so paid shall not be applied to the purchase price of the Option Property.
4. Use of HRA Garage. As additional consideration, Owners shall have the right to use the
HRA's garage at 220 Front Street for storage of the Owners' vehicles and personal property.
provided that no hazardous materials may be stored in the garage. Owners agree to accept the
use of the garage in its "AS IS" condition. Owners hereby release the HRA from any liability
for damage or injury to the Owners' person or property which arises out of the Owners' use of
the garage. Owners agree to hold harmless, defend and indemnify the HRA against any claims.
CAH133322
MN19S-6
1
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.
.
judgments, or costs that result from the Owners' negligence in connection with the Owners' use
of the HRA's garage.
5. Purchase Price and Terms. The purchase price and terms of purchase for the Option
Property are set forth in the purchase agreement attached as Exhibit A to this Option Agreement.
6. Exercise of OPtion. HRA may exercise the option herein granted at any time during the
Term by the delivery of written notice of the exercise of the option to the Owners.
7. Closing. Unless extended by agreement of the parties, Closing on the purchase of the
Option Property shall occur not later than 180 days following the date of notification of exercise
of the Option. .
8. Notices. Any notice, demand, request or other communication which mayor shall be
given or served by the parties shall be deemed to have been given or served on the date the same
is deposited in the United States Mail, registered or certified, postage prepaid and addressed as
follows:
a. If to Seller:
b.
If to Buyer:
Monticello HRA
Attn: Ollie Koropchak
P. O. Box 1147
250 East Broadway
Monticello, MN 55362
9. Miscellaneous. This Agreement represents the complete and final agreement of the parties
and supersedes any prior oral or written understanding. This Agreement may be amended only
by a writing executed by both parties. This Agreement and the Option Property may be assigned
or transferred by the Owners only with the consent of the HRA. This agreement shall be binding
on the parties hereto, their successors and assigns. The HRA may record this Agreement and if
so shall pay all costs of recording. In the event any provision hereof shall be held invalid or
unenforceable, such invalidity or unenforceability shall not affect the remaining provisions hereof.
[remainder of page intentionally left blank]
CAH133322
MN19S-6
2
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.
.
.
IN WITNESS WHEREOF, the parties hereto have caused this Option Agreement to be
duly executed in their names and on their behalf on or as of the date and year first above written.
OWNERS
Richard Carlson
Marion Carlson
STATE OF MINNESOTA )
) ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this _ day of
by Richard Carlson and Marion Carlson, husband and wife.
, 1996,
Notary Public
CAH133322
MN195-6
3
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.
.
HOUSING AND REDEVELOPMENT
AUTHORlTY IN AND FOR THE CITY OF
MONTICELLO
By
Its
By
Its
STATE OF MINNESOTA )
) ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this _ day of , 1996,
by , and , the
and of Housing and Redevelopment Authority in and for the City
of Monticello, a public body corporate and politic under the laws of the State of Minnesota, on
behalf of the Authority.
Notary Public
CJ>JU3 3 3 22
MN19S-6
4
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Exhibit A
PURCHASE AGREEMENT
1. PARTIES. This Purchase Agreement is made this _ day of , _
by and between RICHARD CARLSON and MARION CARLSON, husband and wife ("Sellers")
and HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF
MONTICELLO, a public body corporate and politic ("Buyer").
2. SUBJECT PROPERTY. Sellers are the owners of that certain real estate (the
"Property") located at 225 Front Street, Monticello, Wright County, Minnesota and legally
described as follows:
Lots I, 2, 3, 4 and 5, Block 64, TOWNSITE OF MONTICELLO
3. OFFER/ACCEPTANCE. In consideration of the mutual agreements herein contained,
Buyer offers and agrees to purchase and Sellers agree to sell and hereby grant to Buyer the
exclusive right to purchase the Property and all improvements thereon, together with all
appurtenances, including, but not limited to, garden bulbs, plants, shrubs, trees, and grass.
4. PERSONAL PROPERTY INCLUDED IN SALE. The following items of personal-
property and fixtures owned by Sellers and currently located on the Property are included in this
sale: refrigerator, washer, dryer, storm windows and inserts, storm doors, screens, awnings,
window shades, blinds, curtain-traverse-drapery rods, attached lighting fixtures with bulbs,
plumbing fixtures, sump pumps, water heaters, heating systems, built-in appliances, water
softeners, garbage disposals, installed carpeting, work benches, television antennas and hood-fans
and the following personal property: . Upon delivery of
the deed, Sellers shall also deliver a Bill of Sale for the above personal property.
5. PURCHASE PRICE AND TERMS:
A. PURCHASE PRICE: The total Purchase Price for the real estate and personal
property included in this sale is One Hundred Thirty Thousand and Noll OOths
Dollars ($130,000.00).
B. TERMS:
(1) EARNEST MONEY. Sellers acknowledge receipt of One Dollar ($1.00)
as earnest money.
(2) BALANCE DUE SELLERS. Buyer agrees to pay by check on the Closing
Date any remaining Balance Due according to the terms of this Purchase
Agreement.
(3)
ASSUMPTION OF EXISTING INDEBTEDNESS. The Buyer. in its
discretion and in partial payment of the purchase price, may, to the extent
assumable, assume or take title subject to any existing indebtedness
CAH133322
MN195.6
A-I
.
. encumbering the Property, in which case the cash to be paid at the time of
closing shall be reduced by the then remaining indebtedness.
(4)
DEEDIMARKET ABLE TITLE. Subject to performance by Buyer, Sellers
agree to execute and deliver a Warranty Deed conveying marketable title
to the Property to Buyer, subject only to the following exceptions:
a. Building and zoning laws, ordinances, state and federal regulations.
b. Reservation of minerals or mineral rights to the State of Minnesota,
if any.
c. Utility and drainage easements that do not interfere with existing
improvements on the' Property.
(5) DOCUMENTS TO BE DELIVERED AT CLOSING. In addition to the
Warranty Deed required at paragraph 5B(4) above, Sellers shall deliver to
Buyer:
a.
b.
c.
. d.
Bill of Sale required at paragraph 4 above.
Standard form Affidavit of Seller.
Waiver of Relocation Benefits, as required by paragraph 14 of this
Agreement.
Such other documents as may be reasonably required by Buyer's
title examiner or title insurance company.
6. REAL ESTATE TAXES AND SPECIAL ASSESSMENTS.
A. Sellers shall pay at or prior to closing all real estate taxes due and payable in the
years prior to closing.
B. Buyer and Sellers shall prorate real estate taxes due and payable in the year 0 f
closing as of the Closing Date.
C. Sellers shall pay at or prior to closing all special assessments levied prior to the
Closing Date, including any deferred special assessments.
D. Buyer shall assume all special assessments levied after the Closing Date.
.
7. MARKETABILITY OF TITLE. The Sellers, within a reasonable time after acceptance
of this agreement, shall furnish Buyer with an abstract of title or registered abstract of title to the
Property, certified to a current date and including proper searches covering bankruptci~s.
judgments and tax liens. Buyer shall have twenty (20) days after receipt of the abstrilct [0
examine the same and to deliver written objections to title, if any, to Sellers. Sellers shall ha\t.:
sixty (60) days after receipt of written objections to cure title defects, at the Sellers' cost. I n [he.:
event that title to the Property cannot be made marketable by the Sellers by the Closing [)a[~_
CAH133322
. MN195-6
A-2
.
then, at the option of the Buyer, this Purchase Agreement shall be null and void and the Earnest
Money shall be refunded to the Buyer.
8. CLOSING DATE. The closing of the sale of the Property shall take place on or before
, or at such earlier or later date as may be mutually agreed upon by the
Sellers and Buyer. The closing shall take place at , or such
other location as mutually agreed upon by the parties.
9. POSSESSION/CONDITION OF PROPERTY. The Sellers shall deliver possession of
the Property to Buyer by 4:00 p.m. on the Closing Date, in the same condition as the Property
existed on the date of this Purchase Agreement, reasonable wear and tear excepted. Sellers shall
remove all debris and all personal property from the Property prior to the date of possession.
10. DAMAG ES TO REAL PROPERTY. If the Property is damaged prior to closing, Buyer
may rescind this Purchase Agreement by notice to Sellers within twenty-one (21) days after
Sellers notify Buyer of such damage, during which 21-day period Buyer may inspect the real
property, and in the event of such rescission, Sellers agree to execute a cancellation of this
Purchase Agreement and return the Earnest Money to Buyer.
.
11. DISCLOSURE; INDIVIDUAL SEWAGE TREATMENT SYSTEM. Sellers disclose
that there (IS) (IS NOT) an individual sewage treatment system on or serving the Property. If'
there is an individual sewage treatment system on or serving the Property, Sellers disclose that
the system (IS) (IS NOT) in use, and Sellers further disclose that the type of system is a
system, and Sellers agree to furnish the Buyer with a map showing the
location of the system within five days of the date of this Agreement.
12. WELL DISCLOSURE. Buyer acknowledges receipt of a well disclosure statement,
which is attached to this Purchase Agreement as Exhibit A.
13. SELLERS' WARRANTIES. Sellers warrant that buildings, if any, are entirely within
the boundary lines of the property. Sellers warrant that there is a right of access to the real
property from a public right-of-way. Sellers warrant that there has been no labor or material
furnished to the property for which payment has not been made. Sellers warrant that there are
no present violations of any restrictions relating to the use or improvement of the Property.
These warranties shall survive the closing of this transaction.
14. RELOCA nON BENEFITS. Sellers acknowledge that this Purchase Agreement is not
made under threat of acquisition by eminent domain proceedings and that the Purchase Price is
sufficient to cover Sellers' relocation expenses. Sellers agree to waive any and all relocation
benefits, assistance and services, related to the Property. Sellers agree to provide to Buyer at
Closing a waiver of relocation benefits executed by all owner(s) of the Property.
.
15. NO BROKER INVOLVED. The Sellers and Buyer represent and warrant to each other
that there is no broker involved in this transaction with whom they have negotiated or to whom
they have agreed to pay a broker commission. Buyer agrees to indemnify Sellers for any and all
claims for brokerage commissions or finders' fees in connection with negotiations for purchase
of the Property arising out of any alleged agreement or commitment or negotiation by Buyer, and
CAH133322
MN195-6
A-3
.
.
.
Sellers agree to indemnify Buyer for any and all claims for brokerage commissions or finders'
fees in connection with negotiations for purchase of the Property arising out of any alleged
agreement or commitment or negotiation by Sellers.
16. NO MERGER OF REPRESENTATIONS, WARRANTIES. All representations and
warranties contained in this Purchase Agreement shall not be merged into any instruments or
conveyance delivered at Closing, and the parties shall be bound accordingly.
17. ENTIRE AGREEMENT; AMENDMENTS. This Purchase Agreement constitutes the
entire agreement between the parties, and no other agreement prior to this Purchase Agreement
or contemporaneous herewith shall be effective except as expressly set forth or incorporated
herein. Any purported amendment shall not be effective unless it shall be set forth in writing and
executed by both parties or their respective successors or assigns.
18. BINDING EFFECT; ASSIGNMENT. This Purchase Agreement shall be binding upon
and inure to the benefit of the parties and their respective heirs, executors, administrators,
successors and assigns.
19. NOTICE. Any notice, demand, request or other communication which mayor shall be
given or served by the parties shall be deemed to have been given or served on the date the same
~s deposited in the United States Mail, registered or certified, postage prepaid and addressed as'
follows:
a.
If to Seller:
b.
If to Buyer:
Monticello HRA
Attn: Ollie Koropchak
P. O. Box 1147
250 East Broadway
Monticello, MN 55362
20. SPECIFIC PERFORMANCE. This Purchase Agreement may be specifically enforced
by the parties, provided that any action for specific enforcement is brought within six months
after the date of the alleged breach. This paragraph is not intended to create an exclusive remedy
for breach of this agreement; the parties reserve all other remedies available at law or in equity.
IN WITNESS WHEREOF, the parties have executed this agreement as of the date written
above.
SELLERS
Richard Carlson
CAH133322
MN195-6
A-4
./
.
.
.
CAH133322
MN19S-6
Marion Carlson
BUYER
HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF
MONTICELLO
By
Its Chairperson
By
Its Executive Director
A-5
./ .--
I m I MINNESOTA OEPIiRTM~NT OF HEALTH
01 WELL DISCLOSURE CERTIFICATE
PLEASE TYPE OR PRINT ALL INFORMATION
PtJrson filing deed must attach $10 fee payable to county recorder.
. . .
A. PROPERTY DESCRIPTION
Attach a legal description of property if the property does not have a lot number, block number,
and addition name.
COUNTY LOT NUMBER BLOCK NUMBER ADDITION NAME
STREET ADRESS
CITY STATE ZIP CODE
B. PROPERTY BUYER MAILING ADDRESS AFTER CLOSING
FI RST NAME MIDDLE INITIAL LAST NAME
COMPANY NAME (IF APPLICABLE)
ADDRESS
ADDRESS
CITY STATE ZIP CODE TELEPHONE NUMBER
( )
C. CERTIFICATION BY SELLER
I certify that the information provided on this certificate is accurate and complete to the best of my knowledge.
Signature of SeUer or Designated. Representative of Seller Date "
D. CERTIFICATION BY BUYER
The buyer or person authorized to act on behalf of the buyer, must sign a Well Disclosure Certificate for all deeds given in fulfillment of
a contract for deed if there is a well on the property.
In the absence of a seUer's signature. the buyer, or person authorized to act on behalf of the buyer may sign this well certificate.
No signatlJre is required by the buyer if the seller has signed allove.
Based on disclosure information provided to me by the seller or other available information, I certify that the information on this certificate
is accurate and complete to the best of my knowledge.
Signature of Buyer or Designated Representative of Buyer Date
('lYER)
,.
[mJ
MINNESOTi. DEPA!UMENT OF HEALTH
WELL INFORMATION
PLEASE TYPE OR PRINT ALL INFORMATION
.. Fill out a separate we/( information page if more than three wells are located on the property.
~
WELL LOCATION '1
COUNTY QUARTER . r SECTION NUMBER TOWNSHIP NUMBER RANGE NUMBER
WEll STATUS
yEAR WELL 'NAS SEALED IIF ~NOWNl
WEll IS: DIN USE (1) D NOT IN USE (2) n SEALED BY LICENSED WELL CONTRACTOR (3)
WELL LOCATION #2
COUNTY QUARTER SECTION NUMBER TOWNSHIP NUMBER I RANGE NUMBER
WELL STATUS
YEAR WELL WAS SEALED IIF KNOWN)
WELL IS: DIN USE (1) o NOT IN USE (2) C SEALED BY LICENSED WELL CONTRACTOR (3)
WELL LOCATION #3
COUNTY
QUARTER
SECTION NUMBER TOWNSHIP NUMBER
RANGE NUMBER
WELL STATUS
YEAR WELL WAS SEALED IIF KNOWN)
WELL IS: 0 IN USE (1) 0 NOT IN USE (2) Q SEALED BY liCENSED WELL CONTRACTOR (3)
SKETCH MAP - Sketch the location of the wel/(s) and include estimated distances from roads, streets, and buildings.
IF MORE THAN ONE WELL ON PROPERTY, use THE WELL LOCATION NUMBER ABOVE TO IDENTIFY EACH WELL.
Information provided on this form is classified as public information under Minnesota Statutes. Chapter 13.
M:lWMQROUPIORIQSlDISCLOSUFI'lM 09191 R
,.
.
Monticello HRA
PO Box 1147
Monticello MN 55362-9245
June 9, 1998
.
MC100-01
5/26/98 MTR
5/27/98 RF
~.AL
Hours
Discusssions with Ollie on scattered site iJ9!1sipg ~c..9- t\ Q ~ 0.25
Meeting on St. Henry's Housing projectl' ~ ~ L\ 1.00
Amount
26.25
120.00
Total Due This Month:
Previous Balance:
1.25 $146.25
~~~
Total Balance Due:
$750.00
.
PLEASE KEEP WHITE COpy FOR YOUR FILE AND REMIT PINK COpy WITH PA YMENT TO:
.
EHLERS & ASSOCIATES, INC.
3060 Centre Pointe Drive
Roseville, MN55113.1105
(612) 697.8500
.
MC100-06
ARMORY
Monticello HRA
PO Box 1147
Monticello MN 55362-9245
June 9, 1998
~
Amount
~? J ~ 0,68~'
Previous Balance:
Total Balance Due:
$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
5/1/98 RC
5/11/98 RC
5/12/98 RC
5/18/98 RC
MTR
5/27/98 RF
5/29/98 RC
.~
~3
Monticello HRA
PO Box 1147
Monticello MN 55362-9245
JU. ne 9, 1998~
~~~
Hours Amount
Drafting - Planning commission and HRA resolutions and public
hearing notice
Drafting - City Council resolution and summary
Edit city council resolution and summary
Finalize city council resolution, plan and summary
Review district summary & TIF documents
Attend Hearing on TIF District
Memo requesting documentation for certification
1.25 131.25
1.50 157.50
0.75 78.75
1.00 105.00
2.75 288.75
1.00 105.00
0.25 26.25
Total Due This Month:
Previous Balance:
Total Balance Due:
~7~
8.50 $892.50
~
$2,388.75
.
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
r
.
KENNEDY & GRAVEN
Chartered
200 South Sixth Street, Suite 470
Minneapolis, MN 55402
(612) 337-9300
CLIENT SUMMARY June 9, 1998
.
City of Monticello
Ollie Koropchak
City Hall
P.O. Box 1147
Monticello, MN 55362-9245
Through May 31, 1998
MN 190-00041: R(~development - General
MNI90-00054: Prairie West Project (Komarek)
MNI90-00066: Community Center Financing
MN190-00067: Mall Redevelopment
MN190-00072: Economic Development TIF 1998
MNI90-00073: St. Ben's Housing Development
Services Rendered:
$ 73.70
$ 141.70
$ 1,491.00
$ 67.00
$ 965.43
$ 325.50
$ 3,011.40
$ 52.93
$ 3,064.33
Disbursements:
Balance Due:
I de, under pooalty of law
that thili account, claim or dlimand
is just and correct and that no part
of it has
KENNEDY & GRAVEN
.
Chartered
200 South Sixth Street, Suite 470
Minneapolis, MN 55402
(612) 337-9300
June 9, 1998
V
vR~
City of Monticello
Ollie Koropchak
City Hall
P.O. Box 1147
Monticello, MN 55362-9245
MN 190-00041: Redevelopment - General
Invoice # 24170
Through May 31, 1998
For All Legal Services As Follows:
05/07/98 SJB Review TIF materials 0.25 33.50
05/15/98 SJB Phone call with 0 Koropchak re various TIF issues 0.30 40.20
Total Services: $ 73.70
.
Total Services And Disbursements: $ 73.70
.
.
.
.
KENNEDY & GRAVEN
Chartered
200 South Sixth Street, Suite 470
Minneapolis, MN 55402
(612) 337.9300
June 9, 1998
rcP
~G--~ \ 0J~
~ -Q ,fJ1 ~
~f'
City of Monticello
Ollie Koropchak
City Hall
P.O. Box 1147
Monticello, MN 55362-9245
MNI90-00054: Prairie West Project (Komarek)
Invoice # 21584
Through May 31, 1998
For All Legal Services As Follows:
05/18/98 SJB Review title issues; memo to 0 Koropchak
05/19/98 SJB Phone call with 0 Koropchak re title issues;
certificate of completion
Total Services:
0.75
0.30
100.50
40.20
$
140.70
For All Disbursements As Follows:
05/18/98
Fax
1.00
1.00
Total Disbursements:
$
Total Services And Disbursements:
$
141.70
.
.
.
City of Monticello
Ollie Koropchak
City Hall
P.O. Box 1147
Monticello, MN 55362-9245
~
June 9, 1998
KENNEDY & GRAVEN
Chartered
200 South Sixth Street, Suite 470
Minneapolis, MN 55402
(612) 337-9300
MNI90-00066: Community Center Financing
.
Invoice # 24173
Through May 31, 1998
For All Legal Services As Follows:
05/05/98 DJG Draft management agreement for community
center
05/12/98 DJG Revise development agreement and draft cover
letter re same
Total Services:
8.90
5.30
934.50
556.50
$
1,491.00
For All Disbursements As Follows:
05/11/98
05/12/98
Photocopies
Photocopies
Total Disbursements:
$
0.00
0.00
0.00
Total Services And Disbursements:
$
1,491.00
.
.
.
\~~\..U"
~ovJ~ .
~
\<7X(
Chartered n
200 South Sixth Street, Suite 470 Q "'-.J
M'""'"""., MN 55102 '\,. 0v A/ r' ~
(612) 337-9300 r~ . ~ 6 (j
~,/ 'l\.-J
June 9, 1998 ~
KENNEDY & GRAVEN
City of Monticello
Ollie Koropchak
City Hall
P.O. Box 1147
Monticello, MN 55362-9245
MN190-00067: Mall Redevelopment
Invoice # 24174
Through May 31, 1998
For All Legal Services As Follows:
OS/22/98 SJB Phone call with B Larson and 0 Koropchak re
issuance of Note
0.50
67.00
Total Services:
$
67.00
Total Services And Disbursements:
$
67.00
.
KENNEDY & GRAVEN
Chartered
200 South Sixth Street, Suite 470
Minneapolis, MN 55402
(612) 337-9300
June 9, 1998
City of Monticello
Ollie Koropchak
City Hall
P.O. Box 1147
Monticello, MN 55362-9245
MN190-00072: Economic Development TIF 1998
Invoice # 24176
Through May 31, 1998
For All Legal Services As Follows:
05/04/98 DJG Draft development contract
05/14/98 DJG Review TIF resolutions
Total Services:
. For All Disbursements As Follows:
.
05/04/98
05/15/98
05/15/98
Federal Express - delivery charge
Photocopies
Postage
Total Disbursements:
Total Services And Disbursements:
~\~I!?
. ~C: \/1
"\ }' ~ '6
~
4\'
<:'"
8.30
0.40
$
871.50
42.00
913.50
$
12.50
33.00
6.43
51.93
$
965.43
.
.
.
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
June 9, 1998
MNI90-00073: St. Ben's Housing Development
Invoice # 24177
q If- J...
~~ V_ _...Y
'0 0 QjY"
4
Through May 31, .1998
For All Legal Services As Follows:
OS/26/98 DJG Attend meeting with 0 Koropchak, A Black and R 2.70
Fifield re senior housing
OS/27/98 DJG Research options re bank qualification cap 0.40
Total Services:
Total Services And Disbursements:
$
283.50
42.00
325.50
$
325.50
.
MONTICELLO
Date:
Invoice Number:
Invoice To:
Invoice Amount:
Invoice For:
Monticello Area Chamber of Commerce
205 Pine Street
P. O. Box 192
Monticello, Minnesota 55362
Phone (612)295-2700
June 19, 1998
98-048
City Of Monticello
Ollie Koropchak
PO Box 1147
Monticello, MN 55362
$1,350.00
~~ ~
E:cc\("\ 'V ~.
"'bS ,00-0 6..
"<3u
Chamber Golf Outing Registrations
25 Golfers @ $50 each $1,250.00
Hole Sponsorship $ 100.00
.
Due upon receipt. Thank you for your supportl
.
AUTHORITY FENCE & DECKS, INC.
13341 Acacia Ave. NE
Monticello, MN 55362
.
Invoice
DATE INVOICE #
6/25/98 980129
BILL TO:
Monticello Community Partners
PO Box 984
107 W. Broadway
Monticello, MN 55362
295-0999 Rita
SHIP TO:
PO. NUMBER"-'''' - "'-TERMS' - -.'."REP o. SHIP" . VIA ....- ..-.. "'F~O.R'- ~.
PROJECT
Due on receipt SJS 6/25/98 will call Monticello MN
QUANTITY ITEM CODE DESCRIPTION PRICE EACH AMOUNT
4 5S60-E26-2W 2-rail white end post 14.38 57.52T
Downtown picnic area project!!
2 5S60-L26-2W 2-rail white line post 14.38 28.76T
4 B9626192- W 16' rail white 19.63 78.52T
. 6 B55SGPC-W 5" Gothic cap 3.90 23 AOT
Subtotal 188.20
MN Sales Tax 6.50% 12.23
LE55
[) 0 tV411O"1 7V
M 0 N n~ Co ..1IV'VU..vvC7Y
p~ t_qv.Y3
-=-
7OiYtLDve- it110 ~
. look forward to working with you!
TOTAL
$200A3
AUTHORITY FENCE & DECKS, INC.
13341 Acacia Ave. NE
. Monticello, MN 55362
Estimate
DATE ESTIMATE NO.
6/25/98 562
NAME/ADDRESS
Monticello Community Partners
PO Box 984
107 W. Broadway
Monticello, MN 55362
295-0999 Rita
PROJECT
.~
1'1' I'" ',~ .....'...~,~ ..' ~
ITEM DESCRIPTION QTY RATE TOTAL
5S60-E26-2WB 2-rail white end post 4 14.38 57.52T
5S60-L26-2W 2-rail white line post 2 14.38 28.76T
B9626192-W 16' rail white 4 19.63 78.52T
B55SGPC-WC 5" Gothic cap 6 3.90 23 AOT
.stall Subtotal 188.20
Installation/Labor 48 2.00 96.00
MN Sales Tax 6.50% 12.23
eve look forward to working with you!
TOTAL
$296A3
AUTHORITY FENCE & DECKS, INC.
13341 Acacia Ave. NE
Monticello, MN 55362
.
Estimate
DATE ESTIMATE NO.
6/25/98 562
NAME/ADDRESS
Monticello Community Partners
PO Box 984
107 W. Broadway
Monticello, MN 55362
295-0999 Rita
PROJECT
.. .. - .. - ,., . .,.' "... I; '"' ',' ~,. ~""
ITEM DESCRIPTION QTY RATE TOTAL
5S60-E26-2WB 2-rail white end post 4 14.38 57.52T
Downtown picnic area project!!
5S60-L26-2W 2-rail white line post 2 14.38 28.76T
B9626192-W 16' rail white 4 19.63 78.52T
B55SGPC-WC 5" Gothic cap 6 3.90 23.40T
. Subtotal 188.20
MN Sales Tax 6.50% 12.23
.e look forward to working with you!
TOTAL
$200.43
,..,J l \ v U,:i 1.... .\ V
,._..,..~) \ ~-:::.
t'vt u 0 J. <...cz.-,
.c
H ART E R
E D
470 Pillsbury Center
200 South Sixth Sneet
Minneapolis MN 55402
(612) 337-9300 telephone
(612) 337~931O fax
e-mail: atrys@kennedy-graven.com
Kennedy
STEPHEN J. BUBUL
Attorney at Law
Direct Dial (612) 337-9228
e-mail: sbubul@kennedy-graven.com
May 29, 1998
Ollie Koropchak
City of Monticello
P.O. Box 1147
Monticello, Minnesota 55362-9245
RE: Green Acres Legislation
Our File No. MN190-68
Dear Ollie:
.
We recently sent you the final invoice for work in connection with securing the legislative
change for green acres property in TIF districts. This invoice covered services in April, and
includes $2,282.87 for work by John Choi, the lobbyist we retained to help shepherd the bill
through the legislature.
As you know, the total costs of this legislative activity were higher than anticipated. The issue
became unexpectedly controversial, particularly given stated policies in both houses not to adopt
any substantive change in the tax increment statute in this session. Strong efforts from both
Monticello and Cottage Grove helped overcome that obstacle, but the bill w~nt through many
revisions along the way.
John Choi trucked the legislation at the Capitol and attended numerous committee hearings and
meeting with legislators.' He used his best efforts to allocate his time between the two cities, and
more than $7,000 of his time (more than 75%) was allocated to Cottage Grove.
We think the result is very beneficial to the City of Monticello (and the owners of industrial
land), given that most of the City's industrial land has green acres status. Without this
legislation, tax increment incentives to stimulate develop were limited to strict manufacturing
projects. The new legislation expands that option to include warehouse and distribution facilities,
plus removes limitations on the amount of office space in manufacturing facilities. The only
condition is that 90% of the employees in such facilities must be paid at least 160% of the
federal minimum wage ($8.24/hour under current law), which in fact is similar to the HRA's
policies in any event. The final bill eliminated an earlier provision that would have required an
. additional pay~back of green acres tax benefits if the land is put into a TIF district.
5,18144133
MN190-68
.
l
o "oi.o",'
~
.
Ollie Koropchak
Page 2
May 29, 1998
I hope this letter explains the invoice. If you have further questions, please let me know.
V~S,
Stephen J. Bubul
SJB:gak
S.JB144133
MN190-68
BRA AGENDA
. JULY 1, 1998
l2. Consideration of Executive Director:
a) S1. Bens - On Monday, Fifield and Ruff of Ehlers, John Seckinger of S1. Cloud
Hospital, Allen Black of Senior Housing Partners, and myself met regarding the
development of the Qualified Housing District. The public hearing and adoption
of the TIF Plan is scheduled for August 24. They are hoping to begin construction
October 1, 1998.
b) Scattered Housing Program - On June 22, the City Council authorized the
development of a scattered housing program and a housing inventory or study for
purpose of applying for funds through the Minnesota Housing Finance Agency
(MIfF A) or Trade and Economic Development (TED). The Council elected not to
purchase the property at 613 Sixth Street West.
c) 1999 Budget - The City will begin its budget process for 1999 in mid-July with
distribution of budget worksheets to department heads. Looking ahead with
development of a scattered housing program and marketing plan, are dollars
available for development, implementation, and follow-through of these programs?
As a reminder in budget year 1998, the HRA requested matching dollars of
$75,000 for an industrial development reserve fund and $35,000 for marketing and
$35,000 for downtown redevelopment acquisition.
.
.
1
HRA AGENDA
. JULY 1, 1998
12. Consideration of Executive Director:
a) St. Bens - On Monday, Fifield and Ruff of Ehlers, John Seckinger of St. Cloud
Hospital, Allen Black of Senior Housing Partners, and myself met regarding the
development of the Qualified Housing District. The public hearing and adoption
of the TIF Plan is scheduled for August 24. They are hoping to begin construction
October 1, 1998.
b) Scattered Housing Program - On June 22, the City Council authorized the
development of a scattered housing program and a housing inventory or study for
purpose of applying for funds through the Minnesota Housing Finance Agency
(MHFA) or Trade and Economic Development (TED). The Council elected not to
purchase the property at 613 Sixth Street West.
c) 1999 Budget - The City will begin its budget process for 1999 in mid-July with
distribution of budget worksheets to department heads. Looking ahead with
development of a scattered housing program and marketing plan, are dollars
available for development, implementation, and follow-through of these programs?
As a reminder in budget year 1998, the HRA requested matching dollars of
$75,000 for an industrial development reserve fund and $35,000 for marketing and
$35,000 for downtown redevelopment acquisition.
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NORTHWEST ASSOCIATED CONSULTANTS
COMMUNITY PLANNING - DESIGN - MARKET RESEARCH
24 June 1998
Mr. Rick Wolfsteller
City of Monticello
P.O. Box 1147
Monticello, MN 55362-9245
RE:
FILE NO:
Monticello - Housing Study
802
Dear Rick:
The City Council, at their meeting on 22 June 1998, expressed an interest in having the
HRA pursue a housing study. The tvvo primary goals the of such a study would be to
approach housing maintenance, rehabilitation and redevelopment programs
comprehensively versus an ad hoc manner and to qualify the City for potential grant
programs that are commonly available from agencies such as Central Minnesota Housing,
Farmers Home, MHFA, etc.
Our office has extensive experience in the preparation of similar housing studies for a
number of communities, including Buffalo, Belle Plaine, Shorewood, New Hope and
Owatonna. Additionally, we are familiar with the implementation of the Big Lake Housing
Plan, which was referenced by one of the Council members, through the services we
provide to that community. The purpose of this letter is to outline a general work program
that our office could assist the HRA to complete a housing study that 'meets the City
Council's direction.
A housing needs study for Monticello needs to focus on a range of issues, including the
maintenance and rehabilitation of the community's older existing housing, the types of
housing that should be encouraged through new development, and providing a range of
housing types and values to meet the needs of Monticello residents through various stages
of their lives. Based upon these considerations we would suggest a housing needs study
would follow a work program similar to that outlined below:
5775 WAYZATA BOULEVARD. SUITE 555 ST. LOUIS PARK. MINNESOTA 55416
PHONE 612-595-9636 FAX 612-595-9837 E-MAIL NAC@WINTERNET.COM
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Mr. Rick Wolfsteller
Page 2
WORK PROGRAM
Task 1 - Inventory and Evaluation
This task vvould be a compilation of technical information on existing housing in Monticello
and a demographic profile of residents, Sources of this information would include 1990
census data, the inventory section of the Comprehensive Plan and City building
information. This task would service to identify the following trends and characteristics:
· Type and number of dwelling units
· Age of structures
· Occupancy status
· Valuation
· Population by age
· Household size
· Population income statistics
· Past housing program implementation
This information will identify generalized housing issues and needs within the community,
which can be used as a basis for identifying programs that the HRA could implement to
resolve these issues. A review of past housing programs used in the community should
be done to identify successful programs that may be useful again to address housing
needs in Monticello.
The analysis completed in the initial stages of this task serves as the foundation for a
second component of the inventory, a field condition survey. The 1990 Census indicates
that over 85 percent of Monticello's existing detached single family housing stock is valued
below $100,000, the majority of which is bet\veen $100,000 and $75,000 in value. In order
to evaluate the overall physical condition of the City's more affordable housing and identify
specific areas or sites within the community in need of maintenance, rehabilitation or
redevelopment, a field condition survey of all single family properties would be completed.
Task 2 - Needs Assessment
The primary goal of the housing needs study is to encourage a wide variety of housing
opportunities for all income levels in the community. Therefore, a second task of the
housing profile update is to determine and evaluate the what the needs are for various
types of housing in the City utilizing the information developed during the inventory tasks.
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Mr. Rick Wolfsteller
Page 3
The needs assessment would summarize the raw technical data of the inventory into
specific issues categories such as housing conditions, life cycle housing, housing values,
land use compatibility issues, etc. .
Task 3 - Housing Action Plan
A housing action plan is the implementation component of a housing needs study. An
action plan for Monticello \JVOuld be developed in consideration of the housing needs of the
community and in consideration of the housing related goals and policies of the 1995
Monticello Comprehensive Plan. It is these goals and policies that serve to direct City
officials and staff n promoting various housing redevelopment, maintenance and
assistance projects identified in the action plan. A housing action plan will outline specific
life-cycle, income, maintenance, rehabilitation and/or maintenance housing programs that
may be undertaken or provided to address community housing issues.
SCHEDULE
In terms of a schedule for completing the work program described above, we would
anticipate a time line of three to four months. This schedule allows for review of a draft
reports by City staff and City Officials prior to completing the final housing needs study for
acceptance by the City Council.
PROJECT COST
The estimated cost to complete the \AOrk program is outlined below. The estimated project
cost includes all time and materials to complete the work program, including copying for
all draft reports. The project cost does not, however, include fees for meeting attendance.
Staff from our office \AOuld be available for as many meetings as the City deems necessary
to complete the project at our established technical assistance contract meeting rates.
Also, the estimated project cost does not include reproduction of the final document. This
service would be on a time and materials basis, again, per the established technical
assistance contract.
Task 1
500.00
2,000.00
500.00
1.000.00
$4,000.00
Task 2 _
Task 3 _
TOTAL
Inventory
Housing Conditions Inventory
Needs Assessment
Action Plan
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Mr. Rick Wolfsteller
Page 4
Please note that the work program outlined herein is only suggested based on our past
experience. Should the City determine that changes to the work program are appropriate
to meet their goals, those changes can be accommodated with a corresponding adjustment
in cost.
Hopefully, this information will be useful in guiding the City Council and HRA towards
developing a housing plan that meets their goals and is an effective tool for the City. Our
office looks forward to the potential opportunity to again assist the City of Monticello in
undertaking this project. Should you have any questions regarding this information, please
do not hesitate to contact me at 595-9636.
Sincerely,
NORTHWEST ASSOCIATED CONSULTANTS, INC.
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Stephen W. Grittman
Vice President