HRA Agenda 04-05-2006
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AGENDA - ANNUAL MEETING
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, AprilS, 2006 - 6:00 p.m.
'BridgeRoom - Community Center
Commissioners:
Chair Darrin Lahr, Vice Chair Dan Frie, Steve Andrews, Brad Barger, and Bill Fair.
Council Liaison: Wayne Mayer.
Staff: Rick Wolfsteller, Ollie Koropchak, and Angela Shumann.
GueSts: Mike Maher, President and CEO, and Paul Cserpes, Director of Operations, Karlsburger Foods, Ine
I. Call to Order.
2. Consideration to approve the March 1,2006 HRA minutes.
3. Consideration of adding or removing items from the agenda.
4. Consent Agenda.
5. Consideration to approve a resolution adopting a modification to the Redevelopment Plan for Central
Monticello Redevelopment Project No.1 and establishing TIF District No. 1.37 therein and adopting a TIF
Plan.therefor. Applicant: Karlsburger Foods, Inc.
. 6.
7.
8.
9.
10.
11.
12.
13.
14.
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Public Hearing on the Business Subsidy Agreement and Land Sale - Consideration to adopt a resolution
approving the Purchase and Redevelopment Contract between the HRA and SL Real Estate Holding's LLC
including the business subsidy agreement and land sale. Re-scheduled to April 12.
Consideration to approve a resolution requesting the City Council call for a public hearing on the
modification ofthe TIF Plans for TIF District Nos. 1-2 (Metcalf/Larson) and 1-24 (St. Bens).
Consideration to approve the election of HRA officers and approve appointment of commissioners to
committees.
Consideration to review and accept the year-end financial reports for the HRA General Fund and TIF Fund
as prepared by HRA Treasurer Wolfsteller. Re-scheduled to April 12.
Consideration to review for amending the HRA Business Subsidy Criteria and HRA Bylaws for possible
amendment and to call for a public hea-ring if determined.
Consideration to approve calling for a special HRA meeting.
Consideration to authorize payment ofHRA bills.
Consideration ofHRA Executive Report.
Committee Reports:
Marketing
Fiber Optic
15.
Next regular HRA meeting - Wednesday, May 3, 2006.
16.
Adjournment.
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MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, March 1st, 2006
505 Walnut Street - Bridg.e Room
Commissioners Present:
Steve Andrews, Darrin Lahr, Brad Barger, Bill Fair, and
Dan Frie
Council Liaison Absent:
Wayne Mayer
Staff Present:
Ollie Koropchak, and Angela Schumann.
1. Call to Order.
Chairman Lahr called the meeting to order at 6:00 PM and declared a quorum.
Commissioner Frie arrived late.
2. Consideration to approve the February 1 st , 2006 HRA meeting minutes.
MOTION BY COMMISSIONER FAIR TO APPROVE THE MINUTES OF
THE I--IRA MEETING OF FEBRUARY 1,2006.
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MOTION SECONDED BY COMMISSIONER BARGER. MOTION
CARRIED.
MOTION CARRIED, 4-0.
3. Consideration of adding or remo.ving items from the agenda.
Koropchak added the following item.
7a - Consideration to approve a resolution calling for a public hearing on the
proposed land sale to Karlsburger Foods, Inc.
4. Consent agenda.
NONE.
5. Consideration to authorize entering into a Preliminary Development Agreement
with Karlsburger Foods, Inc and to authorize preparation ofoiat.
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Koropchak described the project, Stating that Karlsburger plans to construct a
20,000 square foot building and employee 20 people, with 16 people out of the ... ...
Monticello facility, at an average wage level of $21.3 7 per hour. Koropchak
reported that Public Works Director John Simola and Paul Kleinwachter had
visited the company at their current location in respect to their needs in
Monticello. Karlsburger is hoping to start construction as soon as the agreement
closes. Koropchakconfirmed that theyhad delivered the deposit.
I.'.
MOTION BY COMMISSIONER ANDREWS TO APPROVE THE
PRELIMINARY DEVLEOPMENT AGREEMENT BETWEEN THE HRA AND
KARLS BURGER FOODS, INC., WITH A DPOSIT OF $10,000 TO
AUTHORIZE PREPARATION OF PLAT.
MOTION SECONDED BY COMMISSIONER FAIR. MOTION CARRIED, 5-
O.
6. Consideration to call hearing for establishment approve a resolution requesting
the City Council call for a public hearing for establishment of proposed TIF
District No. 1-37. an Economic District. Applicant: HRA/Karlsburger Foods.
Inc.
Koropchak stated that this item is the resolution allowing the City Council to call
for the public hearing.
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MOTION BY COMMISSIONER ANDREWS TO APPROVE A RESOLUTION
REQUESTING THE CITY COUNCIL OF THE CITY OF MNTICELLO CALL
FOR A PUBLIC HEARING ON A MODIFICATION TO THE
REDEVELOPMENT PLAN FOR CENTRAL MONTICELLO
REDEVELOPMENT PROJECT NO. I AND THE ESTBALISHMENT OF A
TIF PLAN FOR TIF DISTRICTY NO. 1-37 (AN ECONIMC DISTRICT)
THEREIN AND THE ADOPTION OF A TIF PLAN THEREFOR.
MOTION SECONDED BY COMMISSIONER FRIE. MOTION CARRIED,
5-0.
7. Consideration to approve a resolution calling for a public hearing on the proposed
awarding of business subsidy to Karlsburger Foods, Inc.
MOTION BY COMMISSIONER ANDREWS TO APPROVE A RESOLUTION
CALLING FOR A PUBLIC HEARING ON THE PROPOSEDAW ARDING OF
BUSINESS SUBSIDY TO KARLSGBURGER FOODS, INC.
MOTION SECONDED BY COMMISSIONER FAIR. MOTION CARRIED,
5-0.
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7a. Consideration to approve a resolution calling for a public hearing on the proposed
land sale to Karlsburger Foods. Inc.
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Koropchak stated that the TIF statute requires the resolution regarding the land
sale.
MOTION BY COMMISSIONER ANDREWS TO APPROVE A RESOLUTION
CALLING FOR A PUBLIC HEARING ON THE PROPOSED LAND SALE TO
KARLSBURGER FOODS, INC.
MOTION SECONDED BY COMMISSIONER BARGER. MOTION
CARRIED, 5-0.
8. Consideration to hear follow-up on revisions to the Transformation Home Loan
PrOgram.
Koropchak reported that there are approximately 244 persons who will receive the
revised mailing, which the Commissioners approved.
9. Consideration to authorize payment of HRA bills.
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MOTION BY COMMISSIONER FAIR TO AUTHORIZE PAYMENT OF HRA
BILLS.
MOTION SECONDED BY COMMISSIONER BARGER. MOTION
CARRIED, 5-0.
10. Consideration of the Executive Director's Report.
Koropchak reported that she has not received the report of cost shortfall from
Rocky Mountain. It was to be paid 15 days from receipt. She stated that she
believes they are reviewing their attorney fees. Fair asked for the amount of the
shortfall. Koropchak responded that in addition to the $10,000 deposit, it was
$7,580.
Koropchak reported on that there were some construction repair items to be noted
on the Landmark Square project. She noted that the project was a pay-as-you-go,
and under the conditions of that project, the property needs to be maintained.
Lahr recommended that Koropchak mention the matter to Fluth.
Koropchak indicated that the Peterson's have not yet closed on their
Transformation Home Loan. They would like to maximize the loan to $20,000.
.
Koropchak noted that Chamber Director W oujchouski requested the City consider
acquiring demographic information through a private firm. She had asked if the
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City or HRA would split the cost, as most of the current population data available
from the Census is outdated.
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MOTION BY COMMISSIONER LAHR TO AUTHORIZE PAYMENT OFUP
TO $500 FOR THE ACQUISITION OF UPD~TED DEMOGRAPHIC DATA
MOTION SECONDED BY COMMISSIONER ANDREWS. MOTION
CARRIED, 5-0.
Fair commented on the status of setting priorities as some of the TIFdistricts
would be expiring. Koropchak stated that she, W olfsteller and finance persons
have appointments with Ehlers on the 31 st. The HRA will begin the priori!y-
setting process in April.
11. Committee Reports:
Koropchak gave a brief report on the fiber optics group, noting that committee
members will be reviewing RFPsand setting interviews.
12. Other Business
Koropchak noted that April is the HRA's annual meeting. Dan Frie indicated he
would like to pass as Chair, if possible. Koropchak would research who is next to ..
serve as chair. -
13. Adjournment
MOTION BY COMMISSIONER BARGER TO ADJOURN AT 6:20 PM.
MOTION SECONDED BY COMMISSIONER ANDREWS.
MOTION CARRIED UNANIMOUSLY.
Secretary
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AGENDA - ANNUAL MEETING
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, April 5, 2006~ 6:00 p.m.
Bridge'Room - Community Center
Commissioners: Chair Darrin Lahr, Vice Chair Dan Frie, Steve Andrews, Brad Barger, and Bill Fair.
Council Liaison: Wayne Mayer.
Staff: Rick WoIfsteller, Ollie Koropchak, and Angela Shumann.
Guests: Mike Maher, President and CEO, and Paul Cserpes, Director of Operations, Karlsburger Foods, Ine
I. Call to Order.
2. Consideration to approve the March I, 2006 HRA minutes.
3. Consideration of adding or removing items from the agenda.
4. Consent Agenda.
5. Consideration to approve a resolution adopting a modification to the Redevelopment Plan for Central
Monticello Redevelopment Project No. I and establishingTIF District No. 1~37 therein and adopting a TIF
Plan therefor. Applicant: Karlsburger Foods, Inc.
. 6.
7.
8.
9.
10.
II.
12.
13.
14.
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Public Hearing on the Business Subsidy Agreement and Land Sale. Consideration to adopt a resolution
approving the Purchase and Redevelopment Contract between the HRA and SL Real Estate Holding's LLC
including the business subsidy agreement and land sale. Re~scheduled to April 12.
Consideration to approve a resolution requesting the City Council call for a public hearing on the
modification of the TIF Plans for TIF District Nos. 1-2 (Metcalf/Larson) and 1-24 (St. Bens).
Consideration to approve the election of HRA officers and approve appointment of commissioners to
committees.
Consideration to review and accept the year-end financial reports for the HRA General Fund and TIF Fund
as prepared by HRA Treasurer Wolfsteller. Re-scheduled to April 12.
Consideration to review for amending the HRA Business Subsidy Criteria and HRA Bylaws for possible
amendment and to call fora public hearing if determined.
Consideration to approve calling for a special HRA meeting.
Consideration to authorize payment ofHRA bills.
Consideration ofHRA Executive Report.
Committee Reports:
Marketing
Fiber Optic
15.
Next regular HRA meeting - Wednesday, May 3, 2006.
16.
Adjournment.
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Consideration to approve a resolutio~ adoptinS! of the modification to the
Redevelonment Plan for Central Monticello Redevelopment Proiect No.1 and
establishine: TIF District No. 1-37 therein and the adoption of the TIF Plan therefor.
Applicant: Karlsbure:er Foods. Inc.
HRA Agenda - 04/05/06
A. Reference and Backe:round:
, '.J~>~::'~i!l.':"
TIF District No. 1-37, an Economic District, is being created to assist with land and public
improvement costs associated with development and purchase of the Monticello Business
Center. SL Real Estate Holding's LLC, dba Karlsburger Foods, Inc., plans to construct a
20,000 sq ft office/production/warehouse facility in the city-owned industrial park. The
proposed project will bring 16 full-time permanent jobs at an average wage-level of $21.3 7 per
hour without benefits and create an additional four full-time permanent jobs at an average
wage-level of$18,00 per hour without benefits. The company manufactures food bases,
sauces,and seasonings. According to John Simola, Public Works Director, the production
process places no adverse or very little effect on the waste water treatment plant.
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On March 13, 2006, the City Council called for a public hearing date of April 24, 2006, and
on March 27, 2006, the City Council approved the final plat for Lot 1, Block 1, Otter Creek
Crossing 2nd Addition. On April 4, the Planning Commission approved a resolution finding the
proposed TIF District project conformed with the redevelopment and development goals for
the city of Monticello.
The proposed TIF Plan was distributed to the County and School District on March 24, 2006,
in order to meet the 30-day notice for comment prior to the public hearing of the Council on
April 24, 2006. It is anticipated the land closing will take place May 1 or soon thereafter.
The attached resolution for approval states the findings of the HRA and authorizes the HRA
Director to proceed.
TIF District 1-37, an Economic District, has a life duration of 11 years and collects tax
increment over 9 years. An Economic District must create new jobs and can be used to assist
manufacturing, warehousing, and distribution centers.
The attached maps show the boundaries of the Redevelopment Project No.1 and proposed
TIF District 1-37. Based on the TIF Cashflow ran by Ehlers & Associates using a market
value of$50 per square foot and a 6.5% interest rate, the p~oject is estimated to generate
approximately $173,400 of tax increment over the life of the district.
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B.
HRAAgenda - 04/05/06
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1. A motion to approve a resolution adopting the modification to the. Redevelopment Plan
for Central Monticello Redevelopment Project No. I and establishing TIF District No.
1-37 therein and the adoption of the TIFPlan then~for.
2. Amotion todenyapproval ofthe resolution adopting the modification.......................
"3.
C. Recommendation:
The City Administrator and HRA Executive Director recommend alternative no. 1. The
proposed new wage-levels and building size meet the criteria and the project has no adverse
effect of the treatment plant.
D. SUDDortine, Data:
Resolution for adoption, maps and TIP Plan.
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MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
CITY OF MONTICELLO
WRIGHT COUNTY
STATE OF MINNESOTA
RESOLUTION NO.
RESOLUTION ADOPTING A MODIFICA nON TO THE REDEVELOPMENT
PLAN FOR CENTRAL MONTICELLO REDEVELOPMENT PROJECT NO. 1
AND ESTABLISHING TAX INCREMENT FINANCING DISTRICT NO. 1-37
THEREIN AND ADOPTING A TAX INCREMENT FINANCING PLAN
THEREFOR.
WHEREAS, it has been proposed by the Board of Commissioners (the "Board") of the
Monticello Housing and Redevelopment Authority (the "HRA") and the City of Monticello (the "City")
that the HRA adopt a Modification to the Redevelopment Plan for Central Monticello Redevelopment
Project No.1 (the "Redevelopment Plan Modification") and establish Tax Increment Financing District
No. ] -37 and adopt a Tax Increment Financing Plan (the "TIF Plan") therefor (the Redevelopment Plan
Modification and the TIF Plan are referred to collectively herein as the "Plans"), all pursuant to and in
conformity with applicable law, including Minnesota Statutes, Sections 469.00] to 469.047, and Sections
469.]74 to 469.1799, inclusive, as amended (the "Act"), all as reflected in the Plans and presented for the
Board's consideration; and
WHEREAS, the HRA has investigated the facts relating to the Plans and has caused the Plans to
be prepared; and
WHEREAS, the HRA has performed all actions required by law to be performed prior to the
adoption of the Plans. The HRA has also requested the City Planning Commission to provide for review
orand written comment on the Plans and that the Council schedule a public hearing on the Plans upon
published notice as required by law.
NOW, THEREFORE, BE IT RESOLVED by the Board as follows:
1. The HRA hereby finds that Tax Increment Financing District No. ]-37 is in the public
interest and is an "economic development district" under Minnesota Statutes, Section 469.174, Subd. 12,
and finds that the Plans conform in all respects to the requirements of the Act and will help fulfill a need
to develop an area of the State of Minnesota which is underutilized and that the adoption of the proposed
Plans will discourage commerce and industry from moving their operations to another state or
municipality and thereby serves a public purpose.
2. The HRA further finds that the Plans will afford maximum opportunity, consistent with
the sound needs for the City as a whole, for the development or redevelopment of the project area by
private enterprise in that the intentis to provide only that public assistance necessary to make the private
de~elopments financially feasible.
3.
expanded.
The boundaries of Central Monticello Redevelopment Project No. I are not being
4. Conditioned upon the approval thereof by the City Council following its public hearing
thereon, the Plans, as presented to the HRA on this date, are hereby approved, established and adopted
and shall be placed on file in the office ofthe Executive Director of the HRA.
~,: r..2,:;',ail:.~
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5. Upon approval of the Plans by the City Council, the staff, the HRA'sadvisors and legal
counsel are authorized and directed to proceed with the implementation of the Plans and for this purpose
to negotiate, draft, prepare and present to this Board for its consideration all further plans, resolutions,
documents and' contracts necessary for th is purpose. Approval of the Plans does not constitute approval
of any project or a Development Agreement with any developer.
6. Upon approval of the Plans by the City Council, the Executive Director of the HRA is
authorized and directed to forward a copy of the Plans to the Minnesota Department of Revenue and
Office of the State Auditor pursuant to Minnesota Statutes 469.] 75, Subd. 4a.
7. The Executive Director of the HRA is authorized and directed to forward a copy of the
Plans to the Wright County Auditor and request that the Wright County Auditor certify the original tax
capacity of the District as descriQ,!iS.in the,)i:~. all in accordance with Minnesota Statutes 469.] 77.
Approved by the Board of Commissioners of the Monticello Housing and Rt?development
Authority this 5th day of April, 2006.
Chair
ATTEST:
Secretary
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MODIFICATION TO THE REDEVELOPMENT PLAN
FOR CENTRAL MONTICELLO REDEVELOPMENT PROJECT NO.1
and the
TAX INCREMENT FINANCING PLAN
for the establishment of
TAX INCREMENT FINANCING DISTRICT NO. 1-37
(an economic development district)
within
CENTRAL MONTICELLO REDEVELOPMENT PROJECT NO.1
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
CITY OF MONTICELLO
WRIGHT COUNTY
STATE OF MINNESOTA
Public Hearing: April 24, 2006
Adopted:
This document is in draft form for distribution to the County and the School District. The TIF
Plan contains the estimatedfiscal and economic implications of the proposed TIF District. The
City and the HRA may make minor changes to this draft document prior to the public hearing.
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EHLERS
Prepared by: EHLERS & ASSOCIATES, INC.
3060 Centre Pointe Drive, Roseville, Minnesota 55113-1105
651-697-8500 fax: 651-697-8555 www.ehlers-inc.com
& ASSOCIATES INC
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TABLE OFCONTENTS'
(for reference purposes only)
SECTION 1- MODIFICATION TO THE REDEVELOPMENT PLAN
FOR CENTRAL MONTICELLO REDEVELOPMENT PROJECT NO.1. . . . . . ... . . .. .1-1
Foreword. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ".. . . . . .' . . . . . '.' .' . . . . ... . . .. 1~1
SECTION 11- TAX INCREMENT FINANCING PLAN
FOR TAX INCREMENT FINANCING DISTRICT NO. 1-37 . . . . ... . .. . . . . . . . . . . . .. 2~1
Subsection 2-1. Foreword......... ". . . ' . . : . . . . . . . . . . . . . . . . . . . .. . . .. . . . . . 2-1
Subsection 2-2. Statutory Authority ... . .. . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . .. . 2-1
Subsection 2-3. Statement of Objectives. . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . .. 2~1
Subsection 2-4. Redevelopment Plan Overview. . . . . . . . . . . . . . . . .. . . . .. . . . . . .. 2-1
Subsection 2-5."' Description of Property in the District and Property To Be Acquired . 2-2
Subsection 2-6. Classification of the District ................................ 2-2
Subsection 2-7. Duration ofthe District ............................... . . . " 2-3
Subsection 2-8: Original Tax Capacity, Tax Rate and Estimated Captured Net Tax Capacity
Value/Increment and Notification of Prior Planned Improvements ............... 2-3
Subsection 2-9. Sources of Revenue/Bonded Indebtedness. . .. . . . . . . . . . . . . . . . . 2-4
Subsection 2-10. Uses of Funds .......................................... 2~5
Subsection 2-11. Business Subsidies ...................................... 2-6
Subsection 2,.12. County Road Costs ....... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-7
Subsection 2-13. Estimated Impact on Other Taxing Jurisdictions. ... . . . . . . . . . . . . . 2~7
Subsection 2-14. Supporting Documentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-9
Subsection 2-15. Definition of Tax Increment Revenues ................... . . . .. 2-9
Subsection 2-16. Modifications to the District. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-9
Subsection 2-17. Administrative Expenses ................................. 2-10
Subsection 2-18. Limitation of Increment. . . . . . . . . . . . . . . . . . . . . , . . . . . . . . . . . . . 2-11
Subsection 2-19. Use of Tax Increment. . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . 2-11
Subsection 2-20. Excess Increments. . . . . . . . . . . . .. . . . . . . . . . . . ... . .. . .. . . . . 2-12
Subsection 2-21. Requirements for Agreements with the Developer. . . . . . . . . . . . . . 2-12
Subsection 2-22. Assessment Agreements .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-13
Subsection 2-23. Administration of the District. . .. . . . .. . . . . . . . . . . . . . . . . . . . . . . 2-13
Subsection 2-24. Annual Disclosure Requirements. . . . . .. . . . . . . . . . . . . . . . . . . . . 2-13
Subsection 2-25. Reasonable Expectations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-13
Subsection 2-26. Other Limitations on the Use of Tax Increment. . . . . . . . . . . . . . . . 2-14
Subsection 2-27. Summary ................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-14
APPENDIX A
PROJECT DESCRIPTION ............................................... A-1
APPENDIX B
MAP(S) OF CENTRAL MONTICELLO REDEVELOPMENT PROJECT NO.1
AND THE DISTRICT . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . .. . . . . . . . . . . . . . . . . . . B-1
APPENDIX C
DESCRIPTION OF PROPERTY TO BE INCLUDED IN THE DISTRICT. . . . . . . . . . . . . C-1
APPENDIX D
ESTIMATED CASH FLOW FOR THE DiSTRiCT....... ........... ....... .....0-1
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APPENDIX E
MINNESOTA BUSINESS ASSISTANCE FORM. . " . . . . . . . . .. . . . . . . . . . . . . . . _ " . . E-1
APPENDIX F
BUT/FOR QUALIFICATIONS. ..".. .. . . .. " . . .. . . . . . . ".. .. . . . . . . . . . " . . . .. . . . F-1
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SECTION 1- MODIFICA TION TO THE REDEVELOPMENT PLAN
FOR CENTRAL MONTICELLO REDEVELOPMENT PROJECT NO.1
Foreword
The following text represents a Modification to the Redevelopment Plan for Central Monticello
Redevelopment Project No. 1. This modification represents a continuation of the goals and objectives set
forth in the Redevelopment Plan for Central Monticello Redevelopment Project No.1. Generally, the
substantive changes inc1udethe establishment of Tax Increment Financing District No. 1-37.
For further information, a review of the Redevelopment Plan for Central Monticello Redevelopment Project
No. 1 is recommended. It is available from the City Administrator at the City of Monticello. Other relevant
information is contained in the Tax Increment Financing Plans for the Tax Increment Financing Districts
located within Central Monticello Redevelopment Project No.1.
Monticello HRA
Modification to the Redevelopment Plan for Central Monticello Redevelopment Project No. I
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SECTION II ~ TAX INCREMENT FINANCING PLAN
FOR TAX INCREMENT FINANCING DISTRICT NO. 1~37
Subsection 2~1. Foreword
The Monticello Housing and Redevelopment Authority (the "HRA"), the City of Monticello (the "City"),
staff and consultants have prepared the following information to expedite the establishment of Tax mcrement
Financing District No. 1-37 (the "District"), an economic development tax increment financing district,
located in Central Monticello Redevelopment Project No.1.
Subsection 2~2. Statutory Authority
Within the City, there exists areas where public involvement is necessary to cause development or
redevelopment to occur. To this end, the HRA and City have certain statutory powers pursuant to Minnesota
Statutes ("MS.'1. Sections 469.001 to 469.047, inclusive, as amended, and MS.. Sections 469.174 to
469.1799, inclusive, as amended (the "Tax Increment Financing Act" or "TIF Act"), to assist in financing
public costs related to this project. . .
, This section contains the Tax mcrement Financing Plan (the "TIF Plan") for the District. Other relevant
information is contained in the Modification to the Redevelopment Plan for Central Monticello
Redevelopment ProjectNo. 1.
Subsection 2-3. Statement of Objectives
The District currently consists of 1 parcel(s) ofland and adjacent and internal rights-of-way. The District
is being created to facilitate the construction of an approximately 20,000 sq. ft. production/office facility in
the City of Monticello. Please see Appendix A for further project information. Contracts for this have not
been entered into at the time of preparation ofthis TIF Plan, but development is likely to occur in 2006. This
TIF Plan is expected to achieve many of the objectives outlined in the Redevelopment Plan for Central
Monticello Redevelopment Project No.1.
The activities contemplated in the Modification to the RedevelopmentPlan and the TIF Plan do not preclude
theundertak:ing of other qualified development or redevelopment activities. These activities are anticipated
to occur over the life of Central Monticello Redevelopment Project No. 1 and the District.
Subsection 2-4. Redevelopment Plan Overview
1. Property to be Acquired - Selected property located within the District may be acquired by
the lIRA or City and is further described in this TIF Plan.
2. Relocation - Relocation services, to the extent required by law, are available pursuant to
M.S., Chapter 117 and other relevant state and federal laws.
3. Upon approval of a developer's plan relating to the project and completion ofthe necessary
legal requirements, the HRA or City may sell to a developer selected properties that it may
acquire within the District or may lease land or facilities to a developer.
Subsection 2-5.
Description of Property in the District and Property To Be Acquired
Monticello HRA
Tax Increment Financing Plan for Tax Increment Financing District No. 1-37
2-1
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The District encompasses all property and adjacent rights-of-way and abutting roadways identified by the
parcel(s) listed below. See the map in Appendix B for further information on the location of the District.
Parcel Numbers
155-181-000020
The HRA or City currently owns the property to be included in the District.
Subsection 2~6. Classification of the District
The HRA and City, in determining the need to create a tax increment financing district in accordance with
M.S., Sections 469.174 to 469.1799, as amended, inclusive, find that the District, to be established, is an
economic development district pursuant to M.S., Section 469.174. Subd. 12 as defined below:
"Economic development district /I means a type of tax increment financing district which consists of any
project, or portions of a project, which the authority finds to be in the public interest because:
Pursuant to MS., Section 469.176, Subd. 4c. revenue derived from tax increment from an economic
development district may not be used to provide improvements, loans, subsidies, grants, interest rate
subsidies, or assistance in any form to developments consisting of buildings and ancillary facilities, ifmore
than 15 percent of the buildings and facilities (determined on the basis of square footage) are used. for a
purpose other than:
(1) The manufacturing or productio~ of tangible personal property, including processing resulting
in the change in condition of the property;
(2) Warehousing, storage, and distribution of tangible personal property, excluding retail sales;
(3) Research and development related to the activities listed in items (1) or (2);
(4) Telemarketing ifthat activity is the exclusive use of the property;
(5) Tourism facilities; or
(6) Qualified border retail facilities;
(7) Space necessary for and related to the activities listed in items (1) to (6)
In meeting the statutory criteria the HRA and City rely on the following facts and findings:
The facilities in the District meet the conditions of Purposes 1,2, and 7.
.
The District is being created to assist in the construction of a manufacturing facility for Karlsburger Foods,
Inc. The proposed facility will be used for manufacturing food bases, sauces and seasonings and related
activities.
Monticello HRA
Tax Increment Financing Plan for Tax Increment Financing District No. I ~37
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Pursuant to M.S., Sections 469.176 Subd. 7, the District does not contain any parcel or part of a parcel that
qualified under the provisions of MS., Sections 273.111 or 273.112 or Chapter 473H for taxes payable in
any of the five calendar years before the filing of the request for certification of the District.
Subsection 2~7. Duration of the District
Pursuant to MS., Section 469:175, Subd. 1, and M.S., Section 469.176, Subd. 1, the duration of the District
mus~ be indicated within the TIP Plan. Pursuant to M.S., Section 469.176, Subd. 1b, the duration of the
District will be 8 years after receipt of the first increment by the HRA or City. The date of receipt by the City
of the first tax increment is expected to be 2008. Thus, it is estimated that the District, including any
modifications of the TIP Plan for subsequent phases or other changes, would terminate after 2016, or when
the TIF Plan is satisfied. If increment is received in 2007, the term of the District will be 2015. The HRA
or City reserves the right to decertify the District prior to the legally required date.
Subsection 2~8. Original Tax Capacity, Tax Rate and Estimated Captured Net Tax Capacity
Valuellncrement and Notification of Prior Planned Improvements
PursuanttoM. s., Section 469.174, Subd. 7 and M s., Section 469.177, Subd. 1, the Original Net Tax Capacity
(ONTC) as certified for the District will be based on the market values placed on the property by the assessor
in 2005 for taxes payable 2006.
Pursuant to M.S., Section 469.177, Subds. 1 and 2, the County Auditor shall certify in each year (beginning
in the payment year 2008) the amount by which the original value has increased or decreased as a result of:
1. Change in tax exempt status of property;
2. Reduction or enlargement of the geographic boundaries of the district;
3. Change due to adjustments, negotiated or court-ordered abatements;
4. Change in the use of the property and classification;
5. Change in state law governing class rates; or
6. Change in previously issued building permits.
In any year in which the current Net Tax Capacity (NTC) value of the District declines below the ONTC,
no value will be captured and no tax increment will be payable to the HRA or City.
The original local tax rate for the District will be the local tax rate for taxes payable 2006, assuming the
request for certification is made before June 30, 2006. The ONTC and the Original Local Tax Rate for the
District appear in the table below.
Pursuant to M.S.. Section 469.174 Subd. 4 and M.S., Section 469.177, Subd. 1, 2, and 4, the estimated
Captured Net Tax Capacity (CTC) of the District, within Central Monticello Redevelopment Project No.
1, upon completion of the project, will annually approximate tax increment revenues as shown in the table
" below. The HRA and City request 100 percent of the available increase in tax capacity for repayment of its
obligations and current expenditures, beginning in the tax year payable 2007. The Project Tax Capacity
(PTC) listed is an estimate of values when the project is completed.
Project Estimated Tax Capacity upon Completion (pTC)
Original Estimated Net Tax Capacity (ONTe)
$19,250
$1,650
Monticello HRA
Tax Increment Financing Plan for Tax Increment Financing District No. 1-37
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. Estimated Captured Tax Capacity (CTC)
Original Local Tax Rate
Pay 2006
Estimated Annual Tax Increment (CTCx Local Tax Rate)
Percent Retained by the HRA
$19,412
100%
Pursuant to MS., Section 469.177, Subd. 4, the HRA shall, after a due and diligent search, accompany its
request for certification to the County Auditor or its notice of the District enlargement pursuant to MS.,
Section 469.175, Subd. 4, with a listing of all properties within the District or area of enlargement for which
building permits have been issued during the eighteen(18) months immediately preceding approval ofthe
TJF Plan by the municipality pursuant to MS., Section 469.175, Subd. 3. The County Auditor shall increase
the original net tax capacity of the District by the net tax capacity of improvements for which a building
permit was issued.
The City of Monticello has reviewed the area to be included in the District and determined that no
building permits have been issued during the 18 months immediately preceding approval ofthe TIF
Plan by the City.
Subsection 2M9. Sources of Revenue/Bonded Indebtedness
.
Public improvement costs, utilities, streets and sidewalks, and site preparation costs and other costs outlined
in the Uses of Funds will be financed primarily through the annual collection of tax increments. The HRA
or City reserves the right to use other sources of revenue legally applicable to the HRA or City and the TIF
Plan, including, but not limited to, special assessments, general property taxes, state aid for road maintenance
and construction, proceeds from the sale of land, other contributions from the developer and investment
income, to pay for the estimated public costs.
The HRA or City reserves the right to incur bonded indebtedness or other indebtedness as a result of the TIF
Plan. As presently proposed, the project will be financed by a pay~as-you-go note/interfund loan. Additional
indebtedness may be required to finance other authorized activities. The total principal amount of bonded
indebtedness, including a general obligation (GO) TJF bond, or other indebtedness related to the use of tax
increment financing will not exceed $110,000 without a modification to the TIF Plan pursuant to applicable
statutory requirements. It is estimated that $10,000 in interfund loans will be fmanced with tax increment
revenues. It is also estimated that $110,000 in bonded indebtedness will be financed with tax increment
revenues.
This provision does not obligate the HRA or City to incur debt. The HRA or CitywiIl issue bonds or incur
other debt only upon the determination that such action is in the best interest of the City. The HRA or City
may also finance the activities to be undertaken pursuant to the TJF Plan through loans from funds of the
HRA or City or to reimburse the developer on a "pay-as-you-go" basis for eligible costs paid for by a
developer.
The estimated sources of funds for the District are contained in the table below.
SOURCES OF FUNDS
. Tax Increment
TOTAL
$175,000
Monticello HRA Tax Increment Financing Plan for Tax Increment Financing District No. 1.37
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PROJECT REVENUES
.
Interfund Loans
TIP Note Principal
$175,000
$10,000
$110,000
The other financing sources list above is included for purposes of OSA reporting for the TIP District. It is
not intended to be cumulative. Transfers are included in case money is moved from one fund to another
before an expenditure.
Subsection 2-10. Uses of Funds
Currently under consideration for the District is a proposal to facilitate the construction of an approximately
20,000 sq. ft. production/office facility. The HRA and City have determined that it will be necessary to
provide assistance to the project for certain costs. The HRA has studied the feasibility of the development
or redevelopment of property in and around the District. To facilitate the establishment and development
or redevelopment of the District, this TIP Plan authorizes the use of tax increment financing to pay for the
cost of certain eligible expenses. The estimate of public costs and uses of funds associated with the District
is outlined in the following table.
USES OF FUNDS TOTAL
Land/Building Acquisition $10,800
. Site Improvements/Preparation $10,800
Public Utilities $43,700
Streets and Sidewalks $43,700
Interest $50,000
Administrative Costs (up to 10%) $16,000
PROJECT COSTS TOTAL $175,000
htterfund Loans $10,000
TIP Note Principal $110,000
The other financing uses list above is included for purposes of OSA reporting for the TIP District. It is not
intended to be cumulative. Transfers are included in case money is moved from one fund to another before
an expenditure. TIP is expected to be used for the project costs listed above, which is a not to-exceed budget
rather than an expected budget of costs.
It is estimated that the cost of improvements, including administrative expenses which will be paid or
financed with tax increments, will equal $175,000. It is estimated that the cost of improvements, including
all financing which will be paid for with tax increment will equal $295,000 as is presented in the budget
above.
.
Estimated costs associated with the District are subjectto change among categories without a modification
to this TIP Plan. The cost of all activities to be considered for tax increment financing will not exceed,
without fonnal modification, the budget above pursuant to the applicable statutory requirements. Pursuant
to MS., Section 469.1763, Subd. 2, no more than 20 percent of the tax increment paid by property within the
Monticello HRA
Tax Increment Financing Plan for Tax Increment Financing District No. 1-37
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District will be spent on activities related to development orredevelopment outside of the District but within
the boundaries of CentralMonticello Redevelopment ProjectNo. 1, (including administrative costs, which
are considered to be spent outside of the District)subjecttothelimitationsas described in this TlF Plan.
Subsection 2-11.
Business Subsidies
Pursuant to M,S. Sections 116J993, Subd. 3, the following forms of financial assistance are not considered
a business subsidy:
(1) A business subsidy ofless than $25,000;
(2) Assistance that is generally available to all businesses or to a general class of similar businesses,
such as a line of business, size, location, or similar general criteria;
(3) Public improvements to buildings or lands owned by the state or local government that serve a public
purpose and do not principally benefit a single business or defined group of businesses at the time
the improvements are made;
(4) Redevelopment property polluted by contaminants as defined in M,S, Section 116J.552, Subd. 3;
(5) Assistance provided for the sole purpose of renovating old or decaying building stock or bringing
it up to code and assistance provided for designated historic preservation districts, provided that the
assistance is equal to or less than 50% of the total cost;
(6) Assistance to provide job readiness and training services if the sole purpose of the assistance is to
provide those services;
(7) Assistance for housing;
(8) Assistance for pollution control or abatement, including assistance for a tax increment financing
hazardous substance subdistrict as defined under MS., Section 469,174, Subd. 23;
(9) Assistance for energy conservation;
(10) Tax reductions resulting from conformity with federal tax law;
(11) Workers' compensation.and unemployment compensation;
(12) Benefits derived from regulation;
(13) Indirect benefits derived from assistance to educational institutions;
(14) Funds from bonds allocated under chapter 474A, bonds issued to refund outstanding bonds, and
bonds issued for the benefit of an organization described in section 501 (c) (3) of the Internal
Revenue Code of 1986, as amended through December 31, 1999;
(15) Assistance for a collaboration between a Minnesota higher education institution and a business;
(16) Assistance for a tax increment financing soils condition district as defined under M.S., Section
469.174, Subd. 19;
(17) Redevelopment when the recipient's investment in the purchase of the site and in site preparation
is 70 percent or more of the assessor's current year's estimated market value;
(18) General changes in tax increment financing law and other general tax law changes of a principally
technical nature.
(19) Federal assistance until the assistance has been repaid to, and reinvested by, the state or local
government agency;
(20) Funds from dock and wharf bonds issued by a seaway port authority;
(21) Business loans and loan guarantees of $75,000 or less; and
(22) Federal loan funds provided through the United States Department of Commerce, Economic
Development Administration.
The HRAwilI comply with M.S., Section 116J.993 to 116J.995 to the extent the tax increment assistance
under this TIF Plan does not fall under any of the above exemptions.
Monticello HRA
Tax Increment Financing Plan for Tax Increment Financing District No. 1-37
2-6
. Subsection 2~12. County Road Costs
Pursuant to M.S, Section 469.175, Subd la, the county board may require the HRA or City to pay for all or
part of the cost of county road improvements if the proposed development to be assisted by tax increment
..... Will, in the judgement of the county, substantially increase the use of county roads requiring construction of
road improvements or other road costs and if the road improvements are not scheduled within the next five
years under a capital improvement plan or within five years under another county plan.
Ifthe county elects to use increments to improve county roads, it must notify the HRA or City within forty~
five days of receipt of this TIF Plan. In. the opinion of the HRA and City and consultants, the proposed
development outlined in this TIF Plan will have little or no impact upon county roads, therefore the TIF Plan
was not forwarded t<.> the county 45 days prior to the public hearing. The HRA and City are aware that the
county could claim that tax increment should be used for county roads, even after the public hearing.
Subsection 2-13. Estimated Impact on Other Taxing Jurisdictions
The estimated impact on other taxing jurisdictions assumes that the redevelopment contemplated by the TIF
Plan would occur without the creation ofthe District. However, the HRA orCity has determined that such
development or redevelopment would not occur "but for" tax increment financing and that, therefore, the
fiscal impact on other taxing jurisdictions is $0. The estimated fiscal impact of the District would be as
follows if the "but for" test was not met:
.
IMPACT ON TAX BASE
Wright County
City of Monticello
Monticello ISD No. 882
2005/2006
Total Net
Tax Capacity
106,178,099
13,228,292
20,630,250
Estimated Captured
Tax Capacity (CTC)
Upon Comnletion
17,600
17,600
17,600
Percent of CTC
to Entitv Total
0.0166%
0.1330%
0.0853%
IMPACT ON TAX RATES
2005/2006 Percent Potential
Extension Rates of Total CTC Taxes
Wright County 0.325670 29.53% 17,600 5,732
City of Monticello 0.510280 46.26% 17,600 8,981
Monticello ISD No. 882 0.243720 22.10% 17,600 4,289
Other 0.023300 2.11% 17.600 410
. Total 1.102970 100.00% 19,412
Monticello HRA
Tax Increment Financing Plan for Tax Increment Financing District No. 1.37
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The estimates listed above display the captured tax capacity when all construction is completed. The tax rate
used for calculations is the actual2005/Pay 2006 rate. The total netcapacity for the entities listed above are
based on actual Pay 2006 figures.
Pursuatitto M.S. Section 469.175 Subd. 2(b):
1. It is estimated that the total amount of tax increment that will be generated over the life of the
District is $175,000
z~ An impact of the District on police protection is expected. The City currently contracts with the
Wright County Sheriffs Office for police services. The Wright County Sheriffs Office does track
all calls for service including property-type calls and crimes. With any addition of new residents or
businesses, police calls for service will be increased. New developments add an increase in traffic,
and additional overall demands to the call load. The City does not expect that the proposed
development, in and of itself, will necessitate new capital investment in vehicles or require that the
City expand its contract with Wright County.
The probable impact of the District on fire protection is not expected to be significant. Typically
new buildings generate few calls, if any, and are of superior construction. All new commercial
properties should be sprinkled for public safety. As the City grows, so must the fire department to
provide protection for owners, employee's and the people that live and travel through Monticello.
The impact of the District on public works is expected tobe minimal. The development is not
expected to significantly impact any traffic movements in the area. The current infrastructure for
sanitary sewer, storm sewer and water will be able to handle the additional volume generated from
the proposed development. Based on the development plans, additional costs, including street
maintenance, sweeping, plowing, lighting and sidewalks are minimal because no new roads are
being constructed.
The probable impact of borrowing costs is expected to be minimal. It is not anticipated that there
will be any general obligation debt issued in relation to this project, therefore there will be no impact
on the City's ability to issue future debt or on the City's debt limit.
3. It is estimated that the amount of tax increments over the life of the District that would be
attributable to school district levies, assuming the school district's share ofthe total local tax rate for
all taxing jurisdictions remained the same is $38,601;
4. It is estimated that the amount of tax increments over the life of the District that would be
attributable to county levies, assuming the county's share of the total local tax rate for all taxing
jurisdictions remained the same is $51,588;
5. No requests for additional information from the county or school district regarding the proposed
development for the District were received.
Subsection 2-14. Supporting Documentation
Pursuant to M.S. Section 469.175 Subd I, clause 7 the TIP Plan must contain identification and description
of studies and analyses used to make the determination set forth in M. S. Section 469. I 75 Subd 3, clause (b){2)
and the findings are required in the resolution approving the TIP district. Following is a list of reports and
studies on file at the City that support the Authority's findings:
A list of applicable studies, if any, will be listed here prior to the public hearing.
Monticello HRA
Tax Increment Financing Plan for Tax Increment Financing District No. 1-37
2-8
. Subsection 2~15. Definition of Tax Increment Revenues
PursuanttoM.S., Section 469.174, Subd. 25, tax increment revenues derived from a tax increment financing
district include all of the following potential revenuesources:
1. Taxes paid by the captured net tax capacity, but excluding any excess taxes, as computed under M.S.,
Section 469.177;
2. The proceeds from the sale or lease of property, tangible or intangible, to the extent the property was
purchased by the Authority with tax increments;
3. Principal and interest received on loans or other advances made. by the Authority with. tax
increments;
4. Interest or other investment earnings on or from tax increments;
5. Repayments or return of tax increments made to the Authority under agreements for districts for
which the request for certification was made after August 1, 1993; and
6. The market value homestead credit paid to the Authority under M.S., Section 273.1384.
Subsection 2~16. Modifications to the District
In accordance with M.S, Section 469.175, Subd. 4, any:
.
1. Reduction or enlargement of the geographic area of Central Monticello Redevelopment Project No.
1 or the District, if the reduction does not meet the requirements of M.S., Section 469.175, Subd.
4(e);
2. Increase in amount of bonded indebtedness to be incurred;
3. A determination to capitalize interest on debt if that determination was not a part ofthe original TIP
Plan, or to increase or decrease the amount of interest on the debt to be capitalized;
4. Increase in the portion of the captured net tax capacity to be retained by the HRA or City;
5. Increase in the estimate of the cost of the project, including administrative expenses, that will be paid
or financed with tax increment from the District; or
6. Designation of additional property to be acquired by the HRA or City,
shall be approved upon the notice and after the discussion, public hearing and findings required for approval
of the original TIP Plan.
Pursuant to M.S., Section 469.175 Subd. 4(/), the geographic area of the District may be reduced, but shall
not be enlarged after five years following the date of certification of the original net tax capacity by the
county auditor. If an economic development district is enlarged, the reasons and supporting facts for the
determination that the addition to the district meets the criteria of M.S., Section 469.174, Subd. 12 must be
documented in writing and retained. The requirements of this paragraph do not apply if (1) the only
modification is elimination of parcel( s) from Central Monticello Redevelopment Project No.1 or the District
and (2) (A) the current net tax capacity of the parcel(s) eliminated from the District equals or exceeds the
net tax capacity of those parcel(s) in the District's original net tax capacity or (B) theHRA agrees that,
notwithstanding M.S., Section 469.177, Subd. 1, the original net tax capacity will be reduced by no more than
the current net tax capacity of the parcel(s) eliminated from the District.
.
The HRA or City must notify the County Auditor of any modification that reduces or enlarges the geographic
area of Central Monticello Redevelopment Project No.1 or the District. Modifications to the District in the
form of a budget modification or an expansion of the boundaries will be recorded in the TIP Plan.
Monticello HRA
Tax Increment Financing Plan fOT Tax Increment Financing District No. 1-37
2.9
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Subsection 2-17. Administrative Expenses
In accordance withM.S., Section 469.174, Subd.14, administrative expenses means all expenditures of the
HRA or City, other than:_.,
1. Amounts paid for the purchase of land;
2. Amounts paid to contractors or others providing materials and services, including architectural and
engineering services, directly connected with the physical, development of the real property in the
proj ect;
3. Relocation benefits paid to or services provided for persons residing or businesses located in the
proj ect; or
4. Amounts used to pay principal or interest on;' fund a reserve for, or sell at a discount bonds issued
pursuant to M.S., Section 469.178; or
5. Amounts used to pay other financial obligations to the extent those obligations were used to finance
costs described in clauses (1) to (3).
For districts for which the request for certification were made before August 1, 1979, or after June 30, 1982,
administrative expenses also include amounts paid for services provided by bond counsel, fiscal consultants,
and planning- or economic development consultants. Pursuant to M.S., Section 469.176, Subd. 3, tax
increment may be used to pay any authorized and documented administrative expenses for the District up
to but not to exceed 10 percent of the total estimated tax increment expenditures authorized by the TIF Plan
or the total tax increments, as defined by M.S., Section 469.174, Subd. 25, clause (1), from the District,
whichever is less.
Pursuant to M.S., Section 469.176, Subd. 4h,tax increments may be used to pay for the County's actual
administrative expenses incurred in connection with the District. The county may require payment of those
expenses by February 15 of the year following the year the expenses were incurred.
Pursuant to M.S., Section 469. 177, Subd. 11, the County Treasurer shall deduct an amount (currently .36
percent) of any increment distributed to the HRA or City and the County Treasurer shall pay the amount
deducted to the State Treasurer for deposit in the state general fund to be appropriated to the State Auditor
for the cost of financial' reporting of tax increment financing information and the cost of examining and
auditing authorities' use of tax increment financing. This amount may be adjusted annually by the
Commissioner of Revenue.
Subsection 2-18. Limitation of Increment
The tax increment pledged to the payment of bonds and interest thereon may be discharged and the District
may be terminated if sufficient funds have been irrevocably deposited in the debt service fund or other
escrow account held in trust for all outstanding bonds to provide for the payment of the bonds at maturity
or redemption date.
Pursuant toMS., Section 469.176, Subd. 6:
if, after four years from the date of certification of the original net tax capacity of the tax increment
financing district pursuant to MS., Section 469.177, no demolition, rehabilitation or renovation of
property or other site preparation, including qualified improvement of a street adjacent to a parcel
but not installation of utility service including sewer or water systems, has been commenced on a
parcel located within a tax increment financing district by the authority or by the owner of the
Monticello HRA
Tax Increment Financing Plan for Tax Increment Financing District No. 1.37
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parcel in accordance with the tax increment financing plan, . no additional tax increment may be
taken from that parcel and the original net tax capacity of thatparcel shall be excluded from the
original net tax capacity of the tax increment financing district. .If the authority or the owner of the
parcel subsequently commences demolition, rehabilitation or renovation or other site preparation
on that parcel including qualified improvement of a street adjacent to that parcel, in accordance
with the tax increment jinancing plan, the authority shall certify to the county auditor that the
activity has commenced and the county auditor shall certify the net tax capacity thereof as most
recently certified by the commissioner oFrevenue and add it to the original net tax capacity of the
tax increment jinancingdistrict. The county auditor must enforce theprovisions of this subdivision.
The authority must submit to the county auditor evidence that the required activity has taken place
for each parcel in the district. The evidence for a parcel must be submitted by February 1 of the fifth
year following the year in whic'h the parcel was certified as included in the district. For purposes
of this subdivision, qualified improvements ofastreet are limited to (1) construction or opening of
a new street, (2) relocation of a street, and (3) substantial reconstruction or rebuilding of an existing
street.
The HRA. or City or a property ownermust improve parcels within the District by approximately April, 20 I 0
and report such actions to the County Auditor.
Subsection 2-19. Use of Tax Increment
The HRA or City hereby determines that it will use 100 percent of the captured net tax capacity of taxable
property located in the District for the following purposes:
I. To pay the principal of and interest on bonds issued to finance a project;
2. to finance, or othervvise pay public redevelopment costs of the Central Monticello Redevelopment
Project No. I pursuant to the MS, Sections 469.001 to 469.047;
J. To pay for project costs as identified in the budget set forth in the TIP Plan;
-4. To finance, or othervvise pay for other purposes as provided in M.S.. Section 469.176. Subd. 4;
5. To pay principal and interest on any loans, advances or otherpayrnents made to or on behalf of the
HRA or City or for the benefit of Central Monticello Redevelopment Project No. I by a developer;
6. To finance or otherwise pay premiums and other costs for insurance or other security guaranteeing
the payment when due of principal of and interest on bonds pursuant to the TJF Plan or pursuant to
M.S., Chapter 462C MS, Sections 469.152 through 469.165, and/or M.S.. Sections 469.178; and
7. To accumulate or maintain a reserve securing the payment when due of the principal and interest on
the tax increment bonds or bonds issued pursuant to MS., Chapter 462C, M.S., Sections 469.152
through 469.165, and/or M.S., Sections 469.178.
These revenues shall not be used to circumvent any levy limitations applicable to the City nor for other
purposes prohibited by MS, Section 469.176, Subd. 4.
Tax increments generated in the District will be paid by Wright County to the HRA for the Tax Increment
Fund of said District. The HRA or City will pay to the developer(s) annually an amount not to exceed an
amount as specified in a developer's agreement to reimburse the costs of land acquisition, public
improvements, demolition and relocation, site preparation, and administration. Remaining increment funds
will be used for HRA or City administration (up to 10 percent) and the costs of public improvement activities
outside the District.
Subsection 2-20. Excess Increments
Monticello HRA
Tal( Increment Financing Plan for Tax Increment Financing District No. 1-37
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Excess increments, as defined inM.S., Section 469.176, Subd, 2, shall be used only to do one or more of the
following:
1. Prepay any outstanding bonds;
2. Discharge the pledge of tax increment for any outstanding bonds;
3. Pay into an escrow account dedicated to the payment of any outstanding bonds; or
4. Return the excess to the County Auditor for redistribution to the respective taxing jurisdictions in
proportion to their local tax rates.
The HRA or City must spend or return the excess increments under paragraph (c) within nine months after
the end of the yeaL In addition, the HRA or City may, subject to the limitations set forth herein, choose to
modify the TIFPlan in order to finance additional public costs in Central Monticello Redevelopment Project
No: 1 or the District.
Subsection 2-21. Requirements for Agreements with the Developer
.
The HRA or City will review any proposal for private development to determine its conformance with the
Redevelopment Plan and with applicable municipal ordinances and codes. To facilitate this effort, the
following documents may be requested for review and approval: site plan, construction, mechanical, and
electrical system drawings, landscaping plan, grading and stonn drainage plan, signage system plan, and any
other drawings or narrative deemed necessary by the HRA or City to demonstrate the conformance of the
development with City plans and ordinances. The HRA or City may also use the Agreements to address
other issues related to the development.
Pursuant to M.S., Section 469.176, Subd. 5, no more than 10 percent, by acreage, of the property to be
acquired in the District as set forth in the TIF Plan shall at any time be owned by the HRA or City as a result
of acquisition with the proceeds of bonds issued pursuant to MS, Section 469.178 to which tax increments
from property acquired is pledged, unless prior to acquisition in excess of I 0 percent of the acreage, the HRA
or City concluded an agreement for the development of the property acquired and which provides recourse
for the HRA or City should the development not be completed.
Subsection 2-22. Assessment Agreements
Pursuant to M.S., Section 469.177, Subd. 8, the HRA or City may enter into a written assessment agreement
in recordable form with the developer of property within the District which establishes a minimum market
value of the land and completed improvements for the duration of the District. The assessment agreement
shall be presented to the County Assessor who shall review the plans and specifications for the improvements
to be constructed, review the market value previously assigned to the land upon which the improvements are
to be constructed and, so long as the minimum market value contained in the assessment agreement appears,
in the judgment of the assessor, to be a reasonable estimate, the County Assessor shall also certify the
minimum market value agreement.
Subsection 2-23. Administration of the District
Administration of the District will be handled by the Executive Director of the HRA.
.
Subsection 2-24. Annual Disclosure Requirements
Monticello HRA
Tax Increment Financing Plan fOT Tax Increment Financing District No. 1-37
2.12
.
.
.
Pursuant to M.S., Section 469.175. Subd. 5, 6, and 6b the HRA or City must undertake financial reporting
for all tax increment financing districts to the Office ofthe State Auditor, County Board, County Auditor and
School Board on or before August 1 of each year. MS., Section 469.175, Subd. .5 also provides that an
annual statement shall be published in a newspaper of general circulation in the City on or before August 15.
If the City fails to make a disclosure or submit a report containing the infonnation required by M.s., Section
469.175 Subd. 5 and Subd. 6, the OSA will direct the County Auditor to withhold the distribution of tax
increment from the District.
Subsection 2-25. Reasonable Expectations
As required by the TIF Act, in establishing the District, the determination has been made that the anticipated
development would not reasonably be expected to occur solely through private investment within the
reasonably foreseeable future and that the increased market value of the site that could reasonably be
expected to occur without the use of tax increment financing would be less than the increase in the market
value estimated to result from the proposed development after subtracting the present value ofthe projected
tax increments for the maximum duration of the District permitted by the TIF Plan. In making said
. determination, reliance has been placed upon written representation made by the developer to such effects
and upon HRA and City staff awareness of the feasibility of developing the project site. A comparative
analysis of estimated market values both with and without establishment of the District and the use of tax
increments has been performed as described above. Such analysis is included with the cashflow in Appendix
D, and indicates that the increase in estimated market value ofthe proposed development (less the indicated
subtractions) exceeds the estimated market value ofthe site absent the establishment of the District and the
use of tax increments.
Subsection 2-26. Other Limitations on the Use of Tax Increment
1. General Limitations. All revenue derived from tax increment shall be used in accordance with the TIF
Plan. The revenues shall be used to finance, or otherwise pay public redevelopment costs of the Central
Monticello Redevelopment Project No.1 pursuant to the M.S., Sections 469.001 to 469.047. Tax
increments may not be used to circumvent existing levy limit law. No tax increment may be used for the
acquisition, construction, renovation, operation, or maintenance of a building to be used primarily and
regularly for conducting the business of a municipality, county, school district, or any other local unit
of government or the state or federal government. This provision does not prohibit the use of revenues
derived from tax increments for the construction or renovation of a parking structure.
2. Poolinf!: Limitations. At least 80 percent of tax increments from the District must be expended on
activities in the District or to pay bonds, to the extent that the proceeds of the bonds were used to finance
activities within saiddistrict or to pay, or secure payment of, debt service on credit enhanced bonds. Not
more than 20 percent of said tax increments may be expended, through a development fund or otherwise,
on activities outside ofthe District except to pay, or secure payment of, debt service on credit enhanced
bonds. For purposes of applying this restriction, all administrative expenses must be treated as if they
were solely for activities outside of the District.
3. Five Year Limitation on Commitment of Tax Increments. Tax increments derived fromthe District shall
be deemed to have satisfied the 80 percent test set forth in paragraph (2) above only if the five year rule
set forth inMS., Section 469.1763, Subd. 3, has been satisfied; and beginning with the sixth year
following certification of the District, 80 percent of said tax increments that remain after expenditures
permitted under said five year rule must be used only to pay previously committed expenditures or credit
Monticello HRA
Tax Increment Financing Plan for Tax Increment Financing District No. 1-37
2-13
.
.
.
enhanced bonds as more fully set forth in MS" Section 469.1763, Subd. 5.
Subsection 2.27 .
Summary
The Monticello Housing and Redevelopment Authority is establishing the District to preserve and enhance
the tax base, and provide employment opportunities ih the City. The TIF Plan for the District was prepared
by Ehlers & Associates, Inc., 3060 Centre Painte Drive, Roseville, Minnesota 55113-11 05, telephone (651)
697-8500.
Monticello HRA
Tax Increment Financing Plan for Tax Increment Financing District No. 1-37
2-14
.
.
.
APPENDIX A
PROJECT DESCRIPTION
The HRA will be selling2.5 acres of land to a local company, Karlsburger Foods, Inc, relocating from
another city for a better location. The 20,000 square foot production/office facility will be builtby the end
of 2006. The assistance is in the form of a pay-as-you-go write down of land, site improvements and
preparation, public utilities, and streets. The value ofthe building and land is listed at $1, II 0,000.
The company will pay $1.00 per square foot of land for the first two acres and $2.65 for the remaining half
acre in cash at closing.
APPENDIX
A-I
.
.
.
APPENDIX B
MAP(S) OF CENTRAL MONTICELLO REDEVELOPMENT PROJECT NO.1
AND THE DISTRICT
APPENDIX
E.!
.
o .~ 0< II'. 'I
~ · .....=l ~ !, I I
...;l ~ ~ 55 1'1 I _..
~~ ~~ .
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~.a ~~ ~Q
~ ~ ~.~~
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~~ ~S
~~ ~o
z~ .~u
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u~ ==
~ S
~ ~.
~
~
.
.
~
j'
J
oj
.
APPENDIX C
DESCRIPTION OF PROPERTY TO BE INCLUDED IN THE DISTRICT
The District encompasses all property and adjacent rights-of-way and abutting roadways identified by the
arcel(s) listed below.
Parcel Numbers
Address Owner
155-181-000020
Outlot B, Otter Creek Crossing 1st Addition City of Monticello
.
.
APPENDIX
C-I
.
APPENDIX D
ESTIMATED CASH FLOW FOR THEDISTRlCT
.
.
APPENDIX
D-!
:'" ~.'
3/2312006
Page 1 of 2
.
81 ~.~.~,~.~,~
Karlsburger Foods Project
CITY OF MONTICELLO - Tax Increment Financing District
ProducUon/Office Facility
-.----
Dlstrtct Type Now "commie DovelOpmonlOl.lriel
District Numl>er1_37
Inflation Rate - "very Vea, 0.0000%
Pay-As-Vou-Go Interest Rate 6.5000%
Nota Issued Ollte (P......nt Value Date): 01-Aug-06
Local Tax Rate - Maximum 110.2970% Pay 2006
Fiscal Disparitie. Election (A-Inside 0' B-outside) N/A
Vea, DI.trict Certified Pay 2006
Assume. First Tax Increment for District 2008
Vee, OIstrict Modified NIA
Development located in Modified erea No
Assumes First Tax Increment fO( Development 2008
Vears of Tax Increment 9
Assumes last Vea'ofTax Increment 2016
Fiscal Disparities Ratio
Fiscal Disparltle. Metro Wide Tax Rete
Local Tax Rate - Current
Stale Wide Properly Tax Rate (used fOr total taxes)
Marl<at Value Tax Rate (USed fO( tolel taxes)
0.0000%
0.0000%
110.2970%
50.8200%
0.0667%
Pay 2006
Pey 2000
Pay 2000
COmmet<:iallndustrial Clas. Rate
First 150,000
Over 150,000
Rental Clas. Rete
Residental Clas. Rate
First . '~:600
Over 500,000
1.50%-2,00%
1.50%
2.00%
1.25%
1,00%-1.25%
1.00%
1.25%
Note:
1. Loeal Tax Rete w~hln ISO 882.
.
Cla.s Rote _r
Properly land Building Totel Class Orlglna' __ Convanolon Date
MaptD PID Owne, Mari<et Value Mari<at Value Mari<at Value Rate Tax Canaeltv. Conversion Ta. Canaelty Payable
1 155,181.000020 City Of Monticello 110,000 0 110,000 Municipal Exempt '.50%-2.00% 1,650 2007
TOTAL 11 0 000 0 1650
Note:
1. Land Value has been prorated to represent 2.5 acree.
TolOI Mari<et Val"" Taxes Per Total Mari<et CI:aS5 Now Vear Oate
Phase Us. Sa. Fllllnlls Sa. Ft,/UnIt Sq. FtJUnlt Tax8s Value Rate Tax C.naellv eonstrueted Payable
1 Manutactunng 20,000 50.00 1.55 31,882 1,000,000 1.50%-2.00% 19,250 2006 2008
TOTAl 31 682 1 000 000 19250
Note:
1. Marloot ValUB supplied by City.
2. TlF run assume. 100% of tho building I. eonstructed I>y January 2, 2007 fa, />Oyabl. 2008.
Total Loeol Flaeal loc:al Fl.... Stote-wldo Local Fl.... ~do Markat
Use Tax Tax Dispa_ Ta. OIoparItiH Property Ta"". OIaparltjes Pn>perty Val... Total
Call8citv CaDacitv Tax Call8eltv Rata Tax Rata Tax Rate Ta_ Ta_ T..- T....
Manufadurino 19250 19250 0 1,10297 0.00000 0.S0820 21232 0 9783 667 31,682
TOTAl 1925D 19,250 0 1.10297 O.DDDDD 0.50820 21232 0 9783 667 31682
Note:
1, Montl...lo does not pay Fla.,.1 Ol.partllos, .
2. Manufacturjng pays Stote.-Wldo Properly Tax and Flaeal Di.paritles.
.
fD.. Dlsa....iQn Purpoaq ONLV
Prw=pal*l by a..rs '" AnOC::_5, Inc.
eo.__.T1F.xls
. I~.tl.~,~.~,~
CITY OF MONTICELLO - TAX INCREMENT FINANCING DISTRICT
FI.""I Coptured Semi-Annual stole Admin; Seml-Annuol Seml-Annual PAYMENT VA TE
PERIOO BEGINNING DI.""rftla. Tax Gross Tal( Auditor at Net Tax P......1tnt PERIOD ENDING
Yrs. Mth. Yr. Raduction Ca ac Increment 0.36% 10.00% Increment Value Yn. Mt'"
0.0 02-01 2006 0 0 0 Presant Value Data - 8-01-06 0.0 00.01
0.0 00.01 2006 0 0 0 0 0 0 0 0 0 0.0 02.01
0.0 02-01 2007 1.650 1,650 0 0 0 0 0 0 0 0.0 00.01
0.0 00.01 2007 1,650 1,650 0 0 0 0 0 0 0 0.0 02.01
0 17,000 9,706 (35) (967) 8,704 7,659
0.5 00-01 2008 1,650 19,250 0 17,600 8.706 (35) (967) 8,704 15,On 1.0 02-01 2009
1.0 02-01 2009 1,650 19,250 0 17,000 9,706 (35) (967) 6,704 22,261 1.5 00.01 2009
1.5 00-01 2009 1,650 19,250 0 17,600 8,706 (35) (967) 8.704 29,219 2.0 02.01 2010
2.0 02-01 2010 1,650 19,250 0 17,000 9,706 (35) {967) 8,704 35,958 2.5 00.01 2010
2.5 06-01 2010 1,650 19,250 0 17,000 9,706 (35) (967) 8,704 42,485 3.0 02-01 2011
3.0 02-01 2011 1,650 19,250 0 17,000 9,706 (35) (967) 8,704 48,807 3.5 00-01 2011
3.5 06-01 2011 1,650 19,250 0 17,000 9,706 (35) (967) 8,704 54,929 4.0 02.01 2012
4.0 02-01 2012 1.650 19,250 0 17,600. 9,706 '(35) (967) 8,704 eo,859 4.5 00.01 2012
4.5 0B-01 2012 1,650 19,250 0 17,600 9,706 (35) (967) 8,704 66,602 5.0 02.01 2013
5.0 02.01 2013 1,650 19,250 0 17,000 9,706 (35) (967) 8,704 n,1B5 5.5 08-01 2013
5.5 0B-01 2013 1,650 19,250 0 17,000 9,706 (35)' (967) 8,704 n,552 6.0 02-01 2014
8.0 02.01 2014 1.850 19,250 0 17,000 9,706 (35) (967) 8,704 82,770 8.5 00.01 2014
8.5 08-01 2014 1.650 19,250 0 17,000 9,706 (35) (987) 8,704 87,823 7.0 02-01 2015
7.0 02-01 2015 1,650 19,250 0 17,800 9,706 (35) (967) 8.704 92,717 7.5 00-01 2015
7.5 08-01 2015 1.850 19,250 0 17,000 9,706 (35) (967) 8,704 97,458 8.0 02-01 2018
8.0 02-01 2018 1.650 19,250 0 17,000 9,706 (35) (987) 8,704 102,049 8.5 08-01 2018
8.5 0B-01 2018 1850 19250 0 17000 9706 35 96 8704 106 498 9.0 02-01 2017
TOTAL 174710 629 17408 156 673
P""ont Value Dote. 6-01.06 118758 426 11833 106 496
NOTES:
1. State Auditor PlOyment is based upon 1st half, pay 2005 actual and may Inc.....e over tenn of Ol.trlot.
2.. Assumes development is constructed in 2OO6j a8f;e,sed in 2007 .nd first Increment Is. paid in 2008,
J. Amount of Increment will vary depending upon market valU$, tlX rates, cia,s roltes, construction sehedule and lnnation on m~u1uri v.~uo.
4. Innatio... On tax rates c....not be C'pluM TAX RATES COULD DECUN~
5. TIF doe. not capture atola wiele property laxa. or market v.lue property 10"'.
5. IF INFLATIONARY TIF IS RECEIVED IN 2007, THE FINAL INCREMENT WILL BE 21112016.
Cun'ent ~"rMt Value ~ En
Now M_, V.I.. - Eol.
OIff.rtnce
PrMetlI V..IuB I)f To InChlnBlt
Difference
Value "kety lu occur wtl:hout Tax Ihcr'ement is leM than;
110,000
1_000 000
890,000
118,756
~
771,2....
.
How Tn Inl:r~menl is C.lcul.t~d
Toul Propt=t1y T-.:J;e5
11;" s.:.teTal
1~!Il Market Value To:
ids B.K V.lue TUell
1\nrlual Tu Intumtnt Finallcinc
31,661
-9,783
-667
~ Estimate
.9,412. Ies~ tny admjn. FttS
.
For DmculllliDn PurpDlJeS ONLY
PnI'JYIrM by Eh&em & Mt(IIOiatu,lnc.
C.ahflaw New.Tlt: .)(15
.
.
.
... '," ~.':"
APPENDIX E
MINNESOTA BUSJNESS ASSISTANCEFORM
(MINNESOTA DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT)
APPENDIX
E-I
.
.
.
APPENDIX F
BUTIFOR QUALIFICATIONS
Current Market Vallie
$110,000
$1,000,000
$890,000
$118,756
$771,244
$771 ,244
New Market Value - Estimate
Difference
Present Value of Tax Increment
Difference
Value Likely to Occur Without TIF is Less Than:
The proposed development, in the opinion of the City, would not reasonably be expected to occur solely
through privat~estment within the reasonably foreseeable future: This finding is supported by the fact
that the development proposed in the TIP Plan is a production/office facility that meets the City's objectives
for economic development. The business is moving from another city for a better location and has looked
at other cities. The cost ofland acquisition, site and public improvements and utilities make development
ofthe facility infeasible without City assistance. The City has suffered from a lack of affordable developable
manufacturing property. The HRA is the land developer and is only charging enough to cover "its costs plus
interest to build the infrastructure.
The increased market value of the site that could reasonably be expected to occur without the use of tax
increment financing would be less than the increase in market value estimated to result from the proposed
development after subtracting the present value of the projected tax increments for the maximum duration
ofTIF District No. 1-037 permitted by the TIF Plan: The City supported this fmding on the grounds that the
cost of land acquisition, site and public improvements and utilities add to the total development cost. This
site and surrounding sites have been marketed for several years without success. Therefore, the City
reasonably determines that. no other development of similar scope is anticipated on this site without
substantially similar assistaIice being provided to the development. To summarize this finding:
a. The City's estimate of the amount by which the market value of the site will increase without the use
of tax increment financing is $0 (for the reasons described above), except some unknown amount
of appreciation.
b. If the proposed development to be assisted with tax increment occurs in the District, the total
increase in market value would be approximately $890,000. The increase in market value would be
due primarily to new construction within the District. (See Appendix D and F of TIF Plan).
c. The present value of tax increments from the District for the maximum duration of the district
permitted by the TIF Plan is estimated to be no more than $118,756 (See Appendix F ofTIF Plan)
APPENDIX
FOOl
.
.
.
d. Even if some development other than the proposed development were to occur, the Council finds that
no alternative would occur that would produce a market value increase greater than $771,244 (the
amount in clause b less the amount in clause c) without tax increment assistance.
If the City and HRA did not assume the role ofland developer, the property would not develop in the near
term. If it did develop without assistance, the likely uses would be dominated by housing or other
development with little or no employment. The District meets the City's objectives for retaining existing
quality businesses, a mixture of land uses, and high quality employment for its citizens.
APPENDIX
F-2
BRA Agenda - 04/05/06
.
7.
Consideration to adoDt a resolution requestine the Citv Council of the Citv of
Monticello call for a public hearin!! on a modification to TIF Plan for TIF District No 1~
2 and a modification to the TIF Plan for TIF District No. 1-24.
A. Reference and backeround:
As you recall based on the TIF Analysis completed by Elhers & Associates in January 2006,
the recommendation was to do a formal modification of the TIF Plans for TIF District Nos. 1-2
and 1-24.
For TIF District No. 1-2 (Metcalf/Larson), Ehlers recommended the HRA consider a formal
budget modification to allow for expanded uses of increment within the Project Area. TIF No.
1-2, a Redevelopment District, was certified in 1983 and the required decertification is 2010.
The original Plan has been modified twice and assisted in demolition and acquisition costs of
various buildings for construction of three projects: office building on corner of Locust and
Broadway, Park View Apts. and Broadway Square Apts. Forpre'-1990 districts, tax
increment is available for budgeted expenditures in the district, including public improvements
and land acquisition in the project area.
.
For TIF District No. 1-24 (St. Bens), Ehlers recommended the BRA consider a formal budget
modification in order to allow for use of increment within the project area and to proactively
obligate revenues and set the budget accordingly. There could potentially be $590,000
available for use within the project area for housing improvements. TIF District No. 1-24, a
Housing District, was certified in 1999 and the required decertification is 2026. The district is
obligated to pay of a pay-as-you-go note to 81. Cloud Hospital. The original principal amount
of the note is $440,000.
The modification of the TIF Plans is to enlarge the district budget which requires the same
process as to establish a new district. This will allow the HRA to maximize the tax increment
rather than decertify and return excess increment to the county.
The HRA will actuailyapprove the modification to the Plan on June 7, 2006. At this time, the
attached resolution simply requests the Council to set a public hearing date of June 13, 2006.
B. Alternative Action:
1. A motion to adopt a resolution requesting the City Council of the City of Monticello call
for a public hearing on a modification to the TIF Plan for TIF District No. 1-2 and the
modification to the TIF Plan for TIF District No. 1-24.
.
HRA Agenda - 04/05/06
.
2. A motion to deny adoption of a resolution requesting the City Council of the City of
Monticello call for a public hearing on a modification to the TIF Plan for TIF District
No. 1-2 and the modification ofTIF Plan for TIF District No. 1-24.
3. A motion to table any action.
c. Recommendation:
As this has long been the intent of the HRA to maximize the tax increment of all district, the City
Administrator and Executive Director recommend alternative no. 1.
D. Supportin~ Data:
Resolution for adoption, schedule, and distribution list.
.
2
.
)0"
.
.
.
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
CITY OF MONTICELLO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO.
RESOLUTION REQUESTING THE CITY COUNCIL OF THE CITY OF MONTICELLO
CALL FOR A PUBLIC HEARING ON A MODIFICATION TO THE TAX INCREMENT
FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT 1-2 AND A
MODIFICATION TO THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT
FINANCING DISTRICT NO. 1-24
BE IT RESOLVED, by the Board of Commissioners (the "Board") of the Monticello Housing and
Redevelopment Authority (the "HRA") as follows:
WHEREAS, the City Council (the "Council") of the Cityof Monticello, Minnesota (the "City") established
Tax Increment Financing District No. 142 and Tax Increment Financing District No. 1-24 pursuant to Minnesota
Statutes, Sections 469.174 through 469.1799, inclusive, as amended, in an effort to encourage the development
and redevelopment of certain designated areas within the City; and
WHEREAS, the HRA is proposing a Modification to the Tax Increment Financing Plan for Tax Increment
Financing District No. 1-2 and a Modification to the Tax Increment Financing Plan for Tax Increment Financing
District No. 1-24, all pursuant to, and in accordance with, Minnesota Statutes, Sections 469.174 through
469.1799 and Sections 469.001 to 469.047, inclusive, as amended;
NOW, THEREFORE BE IT RESOLVED by the Board as follows:
1. The BRA hereby requests that the Council call for a public hearing on June 13, 2006, to consider the
proposed adoption of a Modification to the Tax Increment Financing Plan for Tax Increment Financing
District No. 1-2 (a housing district) and a Modification to the Tax Increment Financing Plan for Tax
Increment Financing District No. 1-24 (a redevelopment district), (the "Modifications") and cause notice of
said public hearing to be given as required by law.
2. The I-IRA directs the Executive Director to transmit copies of the Modifications to the Planning
Commission of the City and requests the Planning Commission's written opinion indicating whether the
proposed Modifications are in accordance with the Comprehensive Plan of the City, prior to the date of the
public hearing.
3. The Executive Director of the HRA is hereby directed to submit a copy of the Modifications to the Council
for its approval.
4. The HRA directs the Executive Director to transmit the Modifications to the county and the school
district(s) in which Tax Increment Financing District No. 1-2 and Tax Increment Financing District No. 1-
24 is located not later than May 12,2006.
5. Staff and consultants are authorized and directed to take all steps necessary to prepare the Modifications
and related documents and to undertake other actions necessary to bring the Modifications before the
Council.
Approved by the Board On April 5, 2006.
Chair
ATTEST:
.
.
.
SCHEDULE OF EVENTS
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
AND THE CITY OF MONTICELLO
WRIGHT COUNTY, MINNESOTA
FOR THE PROPOSED MODIFICATION TO THE
TAX INCREMENT FINANCING PLANS
FOR TAX INCREMENT FINANCING DISTRICT NOS. 1-2 AND 1-24
Apri1S,2006
April 1 0,2006
April 17, 2006
May 2, 2006
May 12,2006
May 30, 2006-
June 1,2006
June 6, 2006
June 7, 2006
June 13,2006
HRA requests that the City Council caB for a public hearing on the proposed
Modification to the Tax Increment Financing Plans for Tax Increment Financing
District Nos. 1-2 and 1-24.
City Council calls for public hearing on the proposed Modification to the Tax
Increment Financing Plans for Taxlncrement Financing District Nos. 1-2 and 1-24.
Project information (property identification numbers and legal descriptions,
detailed project description, maps, but/for statement, and list of sources and uses of
funds) for drafting necessary documentation sent to Ehlers & Associates.
Letter received by CountyCommissioner giving notice of a modification to the tax
increment financll1g districts (at least 30 days prior to publication of public hearing
notice.) [Ehlers & Associates willfax and mail by April 28, 2006.}
Fiscal/economic implications received by School Board Clerk and County AuditoL
(at least 30 days prior to public hearing). [Ehlers & Associates willfax and mail by
May 10,2006.]
Ehlers & Associates conducts internal review of Modifications to determine if they
are in compliance with City's comprehensive plan.
Date of publication of hearing notice and map (at least 10 days but not more than
30 days prior to hearing). [Monticello Times publication deadline, May 25, 2()()6 -
Ehlers & Associates will e-mail notice and map to newspaper by May 25, 2006.}
Planning Commission reviews Modifications.
HRA considers the Modifications and adopts a resolution approvll1g the
Modifications.
City Council holds public hearing at 7:00 P.M. on the Modification to the Tax
Increment Financing Plans .for Tax Increment Financing District Nos. 1-2 and 1-24,
and passes resolutIon approving the Modifications. [Ehlers & Associates will
email Council packet inJormation to the City by June 6, 2006.}
Ehlers & Associates files Modifications with the MN Department of Revenue and
the Office of the State Auditor, and requests certification of the TIF District with
Wright County.
**Because the City staff believes that the proposed tax increment district will not require unplanned county road improvements,
the TIF Plan was not forwarded to the County Board 45 days prior to the public hearing. The County Board, by law, has 45 days
to review the plan to determine if any county roads will be impacted by the development. Please be aware that the County Board
could claim that tax increment should be used for county roads, even after the pubhc hearing.
An action under subdivision ], paragraph (a), contesting the validity of a determination by an authority under section 469.175,
subdivision 3, must be commenced within the later of:
(I) ]80 days after the municipality's approval under section 469.175, subdivision 3; or
(2) 90 days after the request for certification of the district is filed with the county auditor under section 469.177, subdivision \.
e
EHLERS
.
.
.
DISTRIBUTION LIST
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
AND THE CITY OF MONTICELLO
WRIGHT COUNTY, MINNESOTA
FOR THE PROPOSED MODIFICATION TO THE
TAX INCREMENT FINANCING PLANS
FOR TAX INCREMENT FINANCING DISTRICT NOS. 1-2 AND 1-24
CITY:
DEVELOPMENT
COUNSEL:
DEVELOPMENT
ADVISOR:
Ollie Koropchak
City of Monticello
505 Walnut Street, Suite I
MQnticello, MN 55362-8831
Steve Bubul
Kennedy & Graven, Chartered
470 U.S. Bank Plaza
200 South Sixth Street
Minneapolis, MN 55402-1458
Martha Ingram
Kennedy & Graven, Chartered
470 U.S. Bank Plaza
200 South Sixth Street
Minneapolis, MN 55402-1458
Todd Hagen
thagen@ehlers-inc.com
Nikki Shannon
nshannon@ehlers-ine_com
Elizabeth Diaz
ed iaz@ehlers-inc.com
Ehlers & Associates, Inc.
3060 Centre Pointe Drive
Roseville, MN 55113-1105
651-697-8555 Fax
e~.~.~,~.~,~
763-271 M3208 Direct
763-295-2711 Main Phone
763.295-4404 Fax
011 ie.koropchak@ci.monticello.mn.us
www.ci.monticello.mn.us
612-337-9228 Phone
612-337.9310 Fax
sbubul@kennedv-graven.com
m in l!ram@kennedv-g:raven.com
651-697 -8508 Phone
651-697 -8518 Phone
651-697 -8519 Phone
HRA Agenda - 04/05/06
.
8.
Consideration to approve the election of HRA officers for 2006 and approve the
appointment of commissioners to committees.
A. Reference and backeround:
OFFICERS
In accordance with the HRA Bylaws, the chair and vice-chair shall be elected at the annual
meeting of the Board of Commissioners from among the Commissioners of the Authority and
shall hold office for one year or until their successors are elected and qualified. The Secretary-
Treasurer shall be appointed at the annual meeting of the Board of Commissioners by the
Commissioners.
At the annual meeting in 1998, the commissioners discussed available time to volunteer and
agreed to rotate the HRA officers among the commissioners suggesting the Vice-Chair move
up to Chair. So being, the Vice Chair for 2005 was Dan Frie, therefore, Frie' s name moves
up to Chair for 2006. The next in-line for Vice Chair is Brad Barger.
FollowIng is a list of names of the previous HRA Chairs and year served:
. Frie 2001 2006
Lahr 2000 2005
Murray (Fair) 1999 2004
Andrews 1998 2003
Barger 2002 2007
Rick W olfsteller serves as the Secretary-Treasurer and delegates the recording of minutes to
Angela Schumann. Koropchak is employed as the Executive Director and serves as assistant
to the Secretary-Treasurer.
COMMITTEES
The HRA, annually or as need be, appoints a commissioner(s) to various committees.
Current committees and appointees:
Marketing - Darrin Lahr/Brad Barger
Fiber Optics - Steve Andrews
.
1
HRA Agenda - 04/05/06
.
B.
Alternative Action:
OFFICERS
1.
A motion to nominate and elect as Chair and
Vice Chair of the HRA for year 2006, and approve the appointment of Rick
Wolfsteller as Secretary-Treasurer for 2006.
as
2. A motion to table any action.
COMMITTEES
1. A motion to approve the appointment of the following commissioners:
Marketing
Fiber Optics
Co Recommendation:
No recommendation given.
.
D. SUDDortine Data:
None.
2
.
-_._,-~'._---
HRA Agenda - 04/05/06
.
10.
Consideration to review for amendine: the HRA Business Subsidy Criteria and HRA
Bvlaws for possible amendment and to call for a public hearine: if determined.
.~~..
These are housekeeping items for review at the annual meeting of the HRA.
BUSINESS SUBSIDYCRITERlA
In review of the Criteria by the Executive Director, it is recommended the commissioners
amend 6. PROCEDURES, page 4, last item to in~lude: or submit the Preliminary Development
Agreement for the Monticello BusinessCenter accompanied by a non-refundable fee of
$10,000. Additionally and attached are the recommendations made by the HRA Attorney.
RECOMMENDATION: A motion calling for a public hearing date of May 3, 2006, to
amend the business subsidy criteria of the Monticello Housing and Redevelopment Authority.
BYLA WS
In review of the Bylaws by the Executive Director, there appears no need to amend.
.
Please review each of these documents.
.
I
.
.
.
Message
J.-a!;;.;.l V.l.l
Ollie Koropchak
From: Yang, Joua X. Uyang@kennedy-graven.com]
Sent: Thursday, March 16,200611:02 AM
To: Ollie Koropchak
Cc: Bubul, Stephen J.
Subject: Memo re: Business Subsidy Criteria
Attachments: Business_ Subsidy- Criteria_suggestions. DOC
Dear Ollie:
On behalf of Steve Bubul, attached please find a memo clarifying the written suggested changes to the Business
Subsidy Criteria faxed to you yesterday, March 15,2006.
Please contact Steve if you have any questions.
Thank you,
Joua Yang
Legal Secretary
Kennedy & Graven, Chartered
470 U_S. Bank Plaza
200 South Sixth Street
Minneapolis. MN 55402
612-337-9211
This notice is required by IRS Circular 230, which regulates written communications about federal tax matters between tax
advisors and their clients. To the extent the preceding correspondence. and or any attachment is a written tax advice
communication, it is not a full "covered opinion." Accordingly, this advice is not intended and cannot be used for the
purpose of (1) avoiding penalties that may be imposed under the Internal Revenue Code of 1986, as amended, or (2)
promoting, marketing, or recommending to another party any matters addressed herein.
This message (including any attachments) is from a law firm and may contain confidential client information or an attorney-
client communication that is confidential and privileged by law. The information is intended only for the use of the individual
or entity to whom it is addressed. If you are not the addressee or the employee or agent responsible to deliver this e-mail to its
intended recipient, please delete this message (and any attachments) without any review, distribution, or copying and notify
the sender ofthe inadvertent transmission.
3/29/2006
.~',;
".,,,,..,..,,,,,,,.,.
'.."..".,:
.
.
.
MEMORANDUM
TO:
Ollie Koropchak
FROM:
Steve Bubul
DATE:
March 16,2006
RE:
Suggested changes to Business Subsidy Criteria
To follow-up and clarify my fax to you sent yesterday, here are my suggested changes to the
Business Subsidy Criteria.
Section 3.01 All business subsidies must meet a public purpose in addition to increasing the tax
base. Job retention may only be used as a public purpose in cases where job loss is
imminent specific and demonstrable.
Section 4.07 No change (ignore my written comments on the fax)
Section 5.03
c.
F or manufacturing and warehousing business subsidy requests, at least 90%
of the jobs created must pay a wage of the higher of $9.00 per hour, or at
least 160% of the federal minimum wage requirement for individuals over
the age of20. In the case of a recipient with existing iobs. the Authority
may determine that the wage goal is satisfied if wages are increased to at
least the minimum specified in this paragraph. Annual written reports are
required until termination date. Failure to meet the job and wage level goals
require partial or full repayment of the assistance with interest.
D. For other business subsidy requests, jobs created must meet as a minimum
the federal minimum wage requirement. In the case of a recipient with
existing iobs, the Authority mav determine that the wage goal is satisfied if
wages are increased bv a specified amowlt over the federal minimum wage.
Annual written reports are required until termination date. Failure to meet
the job and wage level goals require partial or full repayment of the
assistance with interest.
284732vl S.IB MN190-101
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.
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""',....-'.
MONTICELLO
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO, MINNESOTA
Business Subsidy Criteria
Public Hearing and Adoption the 8th day of September, 1999.
Public Hearing and Adoption of Amendments the 4th day of October, 2000.
Public Hearing and Adoption of Amendment the 5th day of May. 2004.
I. PURPOSE
I :0 I The purpose of this document is to establish the Housing and Redevelopment Authority's
criteria for granting of business subsidies, as defined in Minnesota Statutes 1161. 993,
Subdivision 3, for private development. This criteria shall be used as a guide in
processing and reviewing applications requesting business subsidies.
I :02 The criteria set forth in this document are guidelines only. The Housing and
Redevelopment Authority reserves the right in its discretion to approve business subsidies
that vary from the criteria stated herein if the Housing and Redevelopment Authority
determines that the subsidy nevertheless serves a public purpose. The Authority will file
evidence of any deviation from these criteria with the Department of Trade and Economic
Development in accordance with Minnesota Statutes, Section 116J. 994, Subd. Z.
I :03 The Housing and Redevelopment Authority may amend the business subsidy criteria at
any time. Amendments to these criteria are subject to public hearing requirements
pursuant to Minnesota Statutes, Sections 1161.993 through 116J. 994.
2. STATUTORY LIMITATIONS
2:01 In accordance with the Business Subsidy Criteria, Business Subsidy requests must
comply with applicable State Statutes. The Housing and Redevelopment Authority
ability to grant business subsidies is governed by the limitations established in Minnesota
Statutes 1161.993 through 116J. 994.
.
.
.
3.
3:01
4.
4:01
HRA Business Subsidy Criteria
PUBLIC POLICY REQUIREMENT
All business subsidies m. ust meet a public purpose in addition to increasing the tax base.. J.t-
Job retention may only be used as a public purpose in cases where job loss is imminent A
and demonstrable.
BUSINESS SUBSIDY APPROVAL CRITERIA
All new projects approved by the Housing and Redevelopment Authority should meet the
following minimum approval criteria. However, it should not be presumed that a project
meeting these criteria will automatically be approved. Meeting these criteria creates no
contractual rights on the part of any potential developer or the Housing and
Redevelopment Authority.
4:02 The project must be in accord with the Comprehensive Plan and Zoning Ordinances, or
required changes to the plan and ordinaRces must be under active consideration by the
City at the time of approval.
4:03
4:04
4:05
4:06
, Business subsidies will not be provided to projects that have the financial feasibility to
proceed without the benefit of the subsidy. In effect, business subsidies will not be
provided solely to broaden a developer's profit margins on a project.
Prior to approval of a business subsidies financing plan and when deemed appropriate by
the Housing and Redevelopment Authority, the developer shall provide any required
market and financial feasibility studies, appraisals, soil boring, information provided to
private lenders for the project, and other information or data as requested.
A recipient of a business subsidy must make a commitment to continue operations at the
site where the subsidy is used for at least five years after the benefit date.
The Housing and Redevelopment Authority may determine after a public hearing that job
creation or retention is not a goal of the subsidy. In those cases, the recipient must
instead meet at least one of the following minimum requirements (in addition to all other criteria in this
document other than those relating to jobs and minimum wages):
A. The proposed subsidy must accomplish removal, rehabilitation or
redevelopment of "blighted areas" as defined in Minnesota Statutes, Section 469.002,
Subd. 11, or must constitute a cost of correcting conditions that allow designation of
redevelopment districts under Minnesota Statutes, Sections 469.174 to 469.179; or
2
.
.
.
HRA Business Subsidy Criteria
B. The proposed subsidy must result in improvements to public infrastructure or
public facilities, including without limitation, sewers, storm sewers, streets, parks,
recreational facilities, and other City facilities; or
C. The proposed subsidy must remove physical impediments to development of
land, including without limitation poor soils, bedrock conditions, steep slopes, or similar
geotechnical problems.
4:07 For any busin~ss subsidy that does not meet the requirements of Section 4:06, the
recipient must create or retain jobs as determined by the Housing and Redevelopment
Authority, and must meet the minimum wage thresholds described in Section 5:03C or D
(whether or not the source of the subsidy is tax increment financing).
5. TAX INCREMENT PROJECT EV ALUA nON CRITERIA
5:01 The Housing and Redevelopment Authority will utilize Tax Increment financing to
support the community's long-term economic, redevelopment, and housing goals.
5:02 Each Tax Increment Financing subsidy will be analyzed and evaluated by the Housing
and Redevelopment Authority. Each project shall be measured against the general
criteria in Sections I through 6 and the specific criteria in this Section 5 applicable to tax
increment financing business subsidies.
5:03 Following are the evaluation criteria that will be used by the Housing and Redevelopment
Authority.
A. All business subsidy requests shall meet the "but for" test. The "but for" test
means that the project would not develop solely on private investment in the
reasonable future. The developer shall provide findings for the "but for" test.
B. Business subsidy requests should create the highest feasible number of jobs on
site from date of occupancy where deemed appropriate..
C. For manufacturing and warehousing business subsidy requests, at least 90% of the
jobs created must pay a wage of the higher of$9.00 p.er hour, or at least 160% of V.
the federal minimum wage requirement for individuals over the age of 20. -;jC"
Annual written reports are required until termination date. Failure to meet the job
and wage level goals require partial or full repayment of the assistance with interest.
D.
For other business subsidy requests, jobs created must meet as a minimum the
federal minimum wage requirement. Annual written reports are required until
termination date. Failure to meet the job and wage level goals require partial or
~
3
.
.
.
HRA Business Subsidy Criteria
full repayment of the assistance with interest.
E.
All business subsidy requests should create the highest possible ratio of property
taxes paid before and after redevelopment.
F.
Business subsidy requests should facilitate redevelopment or elimination of
"substandard" or "blighted" areas where deemed appropriate.
G.'
Business subsidy requests should facilitate the "clean-up" of environmentally
unsound property where deemed appropriate.
H.
Business subsidy requests should increase moderate priced housing options for
area residents where deemed appropriate.
1.
All business subsidy requests should be deemed to promote additional desired
"spin-off' development.
J.
All business subsidy requests should demonstrate "community involvement"
including demonstrated degrees of the various factors:
a) Local residency of the company's owners and employees, or
b) Local residency of the contractors involved in the project, or
c) Membership in local business organizations, or
d) Other similar factors.
6. PROCEDURES
. Meet with appropriate Staff to discuss the scope of the project, public participation
being required, and other information as may be necessary.
. The request shall be reviewed by Staff on a preliminary basis as to the feasibility
of the project.
. The project concept shall be placed on the Housing and Redevelopment Authority
agenda for concept review. The applicant will make a presentation of the project.
Staff will present its findings.
. If the I-lousing and Redevelopment Authority's concept review is positive, Staff
will provide the city Council with an informational concept review.
.
The applicant will execute and submit the Preliminary Development Agreement
accompanied by a non,refUndablefee4 of $7 ,500. ~
.
.
.
HRA Business Subsidy Criteria
.
Building and site plans submitted to the Chief Building Official.
. If Planning and Zoning Commission action is required, it will be necessary for the applicant, at
this time, to make application to the Commission.
. Staff will authorize the following steps:
_ Preparation for establishment of the Tax Increment Finance District and the Tax Increment
Financing Plan if required.
_ Preparation ofthe Private Redevelopment Contract (Subsidy Agreement) based upon agreed
terms.
. When action is required for the Tax Increment Finance Plan, Private Redevelopment Contract,
or Zoning/Ordinance; the Housing and Redevelopment Authority, Commission, and City
Council shall take appropriate action such as public hearings and consideration of approvals.
.
Building permit issued after the Tax Increment Finance District and Plan is approved by City
Council, the Private Redevelopment Contract is executed by the developer and the Housing
and Redevelopment Authority, and the Building Permit Fees are paid.
Eligible Tax increment Finance expenditures: Land acquisition, site improvements, puhlic
improvements, and demolition and relocation costs.
Tax Increment Finance time: Generally six to eight weeks from time of authorization to begin drafting
plan and contract.
Zoning/Ordinance time: Varies per project.
5
.
.
.
Section 1.
Section 2.
Section 3.
Section 4.
Section 1.
Section 2.
AMENDED
BYLAWS OF THE HOUSING ANn REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO, MINNESOTA
ARTICLE I
THE AUTHORITY
Name of Authority. The name of the Authority shall be the "Housing and
Redevelopment Authority in and for the City of Monticello, Minnesota."
Sealof Authority. The seal of the Authority shall be inthe form of a circle and shall
bear the name of the Authority and the year of its organization.
Office of the Authority: Place of Meeting. The office of the Authority shall be at such
place in the city of Monticello, Minnesota, as the Authority may from time to time
determine by resolution. Regular and special meetings of the Board of Commissioners
shall be open to the public and shall be held in Monticello City Hall at 505 Walnut
Street, Suite #1, Monticello, Minnesota; provided, however, that upon three days
written notice to the Commissioners of the place of such meeting, _any regular or special
meeting may be held at such place within the city of Monticello as the notice shall
designate.
Powers of the Authority. The Authority, by and in its corporate name, shall have and
exercise all powers, functions, rights, and privileges pursuant to Minnesota Statutes
469.001. et seq.
AR TI CLE II
COMMISSIONERS
Authority. The business and affairs of the Authority shall be managed by or under the
authority of the Board of Commissioners, except as otherwise permitted by statute.
Number. Qualification, and Term of Office. There shall be five Commissioners
appointed by the Mayor of Monticello and approved by the City Council.
Commissioners shall be natural persons, at least 18 years of age, and must reside in the
city of Monticello. Commissioners shall serve a term of five years with one
Commissioner's term expiring each year.
DAWNIWORDlOLLlEIBYLAW$HRA 4/3/02
Page 1
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.
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Section 3.
Section 4.
Section 1.
Section 2.
Section 3.
Section 4.
Vacancies. Vacancies on the Board of Commissioners occurring by reason of death,
resignation, removal, or disqualification shall be filled for the unexpired term by the
Mayor in accordance with the procedures set forth in Article II, Section 2.
Removal. For inefficiency or neglect of duty, or misconduct in office, a Commissioner
may be removed from office by the City Council in accordance with Minnesota Statute
469.010.
ARTICLE III
OFFICERS
Officers. The Officers of the Authority shall consist of a Chair, Vice-Chair, and a
Secretary- Treasurer. The Chair and Vice-Chair shall be elected from among the
Commissioners. A Commissioner shall not hold more than one of the above-named
offices at the same time. The Secretary-Treasurer shall be appointed by the
Commissioners.
Chair. The Chair shall preside at all meetings of the Board of Commissioners if present.
Except as otherwise authorized by resolution of the Board of Commissioners, the Chair
shall sign all contracts, deeds, and other instruments made by the Authority. At eaeh
meeting, the Chair shall submit such recommendations and information as considered
proper concerning the business, affairs, and policies of the Authority. Except as
otherwise provided by resolution of the Board of Commissioners, all such orders and
checks shall be counter-signed by the Chair.
Vice-Chair. The Vice-Chair shall perform the duties of the Chair in the absence or
incapacity of the Chair; and in case of resignation or death of the Chair, the Vice-Chair
shall perform such duties as are imposed on the Chair until such time as the Board of
Commissioners shall select a new Chair.
If in the event a quorum is present and the Chair and Vice-Chair are absent or unable
to attend a meeting of the Board of Commissioners. The three remaining members shall
elect from among the remaining Commissioners a Chair for the said meeting.
Secretary- Treasurer. The Secretary-Treasurer shall perform the duties of the office of
Secretary-"freasurer. The Secretary-Treasurer may delegate the responsibility for
recording the Minutes of the Board of Commissioner meetings to the Executive
Director or to the Authority Office Secretary as is determined appropriate by the
Secretary- Treasurer. The Secretary-Treasurer shall sign all orders and checks for the
payment of money and shall payout and disburse such moneys under the direction of
the Authority.
DAWNM'ORDlOLLlE\BYLAWS.HRA: 4/3/02
Page 2
.
.
.
Section 5.
Additional Duties. The Officers of the Authority shall perform such other duties and
functions as may from time to time be required by the Authority or the bylaws or rules
and regulations of the Authority.
Section 6.
Election or Appointment. The Chair and Vice-Chair shall be elected at the annual
meeting of the Board of Commissioners from among the. Commissioners of the
Authority and shall hold office for one year or until their successors are elected and
qualified. The Secretary-Treasurer shall be appointed at the annual meeting ofthe
Board of Commissioners by the Commissioners.
Section 7.
Vacancies. Should the office of the Chair, Vice-Chair, or Secretary-Treasurer become
vacant, the Board of Commissioners shall elect a successor from its members at the
next regular meeting, and such election shall be for the unexpired term of said office.
ARTICLE IV
EXECUTIVE DIRECTOR
The Authority shall employ an Executive Director who shall have general supervision over the
administration of its business and affairs, subject to the direction of the Board of Commissioners. As
assistant to the Secretary-Treasurer, the Executive Director shall ensure that proper records of the
Authority are maintained. The Executive Director (or designee) shall act as Secretary of the meeting of
the Board of Commissioners and shall keep a record of the proceedings in a journal of proceedings to
be kept for such purposes (the minutes of the proceedings are to be signed by the recorder plus the
Authority Commissioner acting as Chair at the meeting). The Executive Director shall perform all duties
incident to the Executive Director position as may be assigned by the position description as approved
by the Board of Commissioners. The Executive Director shall keep in safe custody the seal of the
Authority and shall have the power to affix such seal to all contracts and instruments authorized to be
executed by the Authority.
The Executive Director shall have the care and custody of all funds of the Authority and shall deposit
the same in the name of the Authority in such bank or banks as the Board of Commissioners may
select. The Executive Director shall be charged with the management of the housing projects of
Authority.
The Executive Director shall keep regular books of accounts showing receipts and expenditures and
shall render to the Board of Commissioners, at each regular meeting (or more often when requested),
an account of his/her transactions and also of the financial condition of the Authority. The Executive
Director shall give such bond of the faithful performance of duties as the Board of Commissioners may
determine.
DAWNIWORDlOLLlEIBYLAWSHRA: 4/3/02
Page 3
.
.
.
The Executive Director shall be appointed by the Board of Commissioners. Any person appointed to
fill the office of Executive Director, or any vacancy therein, shall have such term as the Board of
Commissioners fixes, but no Commissioner of the Board of Commissioners shall be eligible to this
office. When the office of Executive Director becomes vacant, the Board of Commissioners shall
appoint a successor, as aforesaid.
So long as the Executive Director is an employee of and paid by the City, the Executive Director's
compensation will be determined in accordance with City compensation policies and procedures
provided that the Board of Commissioners shall at least annually review the performance of the
Executive Director and make recommendationsto the City regarding that person's compensation. If
the Executive Director is not an employee of the City but is independently retained by the Authority, the
Board of Commissioners shall establish the compensation of the Executive Director.
ARTICLE V
ADDITIONAL PERSONNEL
The Board of Commissioners may from time to time employ such personnel as it deems necessary to
exercise its power, duties, and functions as prescribed by the Municipalllousing and Redevelopment
Law of Minnesota applicable thereto. The selection of such personnel (including the Executive
Director) shall be determined by the Board of Commissioners subject to the laws of the State of
Minnesota. In cases where such personnel are employees of and paid by the City, sLlch persons'
compensation will be determined in accordance with City compensation policies and procedures,
provided that the Board of Commissioners shalI at lcastannually review the performance of the
personnel and make recommendations to the City regarding such persons'
compensation. If any personnel are not employees of the City but are independently retained by the
Authority, the Board of Commissioners shall establish the compensation of sLlch personnel.
ARTICLE VI
MEETINGS
Section 1.
Annual Meeting. The annual meeting of the Board of Commissioners shall be held on
the first Wednesday of April at 6 p.m. at the regular meeting place of the Board of
Commissioners; provided, however, that the date/time of the annual meeting may be
postponed to a subsequent date/time upon the vote of a majority of Commissioners in
office at any time taken at any regular or special meeting.
Section 2.
Regular Meetings. Monthly meetings shall be held without notice at the regular meeting
place of the Board of Commissioners on the first Wednesday of each month at 6 p.m.
unless the same shall be a legal holiday, in which event said meeting shall be held on the
next succeeding secular day. In the event the date/time/meetings place of a particular
meeting must be changed, the Chair may make such change deemed necessary by
notifying all Commissioners by delivering (by staff) a notice to their home address at any
time prior to the meeting or mailing a notice to the business or home address at least
three (3) working days prior to the date of such regular meeting.
DAWNIWORDIOLLlEIBYLAWSHRA: 413102
Page 4
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.
.
...::..,',!.
Section 3.
Special Meetings. Special meetings of the Board of Commissioners may be called by
the Chair or two members of the Board of Commissioners for the purpose of
transacting any business designated in the call. The call (including location of meeting)
felr a special meeting may be delivered at any time prior to the time of the proposed
meeting to each member of the Board of Commissioners or may be mailed to the
business or home address of each member of the Board of Commissioners at least
three (3) working days prior to the date of such special meeting. At such special
meeting, no business shall be considered other than as designated in the call; but ifall of
the members of the Authority arepresent at aspecial meeting, any and all business
may be transacted at such special meeting. Notice of any special meeting shall be given
in accordance with MinnesotaStatutes, Section 471.705, subd. 1 c, or any successor
statute regarding notice of meetings of public bodies.
ARTICLE VII
QUORUM
The powers of the Authority shall be vested in the Commissioners thereof in office from time to time.
Three Commissioners constitute a quorum (except as noted below) for the purpose of conducting its
business and exercising its powers and for all other purposes, but a smaller number may adjourn from
time to time until a quorum is obtained. When a quorum is in attendance, action may be taken by the
Board of Commissioners upon a vote of a majority of the Commissioners present (except as noted
below). .
Exception: In regard to action on the annual Authority operating budget, or revisions thereto, there
must be at least four Commissioners present, and the majority of those present mLlst vote in favor of
such for the matter to be approved.
ARTICLE VIII
ORDER OF BUSINESS
Section 1.
Order of Business. At the regular meetings of the Board of Commissioners, the
following shall be the Order of Business:
1. Ro II call
2. Reading and approval of minutes of the previous meeting
3. hems not contained in the agenda
4. New business
5. Bills and communications
6. Project update by Executive Director
7. Other Business
8. Adjournment
All resolutions shall be in writing and shall be copied in the journal of the proceedings of
the Board of Commissioners.
DAWNIWORDlOLLlEIBYLAWSHRA 4/3102
Page 5
.
.
.
ARTICLE IX
MANNER OF VOTING
The voting on all questions coming before the Board of Commissioners shall be by roll call, and yeas
and nays shall be entered upon the minutes of such meeting. The Chair and all members of the Board
of Commissioners at every meeting of said Board of Commissioners shall be entitled to a vote. In the
event that any Commissioners shall have a personal interest of any kind in a matter then before the
Board of Commissioners, the Commissioners shall disclose his/her interest and be disqualified from
voting upon the matter, and the Secretary shall so record in the minutes that no vote was cast by said
Commissioner.
ARTICLE X
EXECUTION OF CONTRACTS
All contracts, notes, and other written agreements or instruments to which the Authority is a party or
signatory or by which the Authority may be bound shall be executed by the Chair and Executive
Director. If the Executive Director is absent or otherwise unable to execute a document, the Secretary.
Treasurer may execute the document.
ARTICLE XI
AMENDMENTS
The bylaws of the Board of Commissioners shall be amended by Resol ution only with the approval of
at least a majority of the Commissioners in office at any time.
These hylaws were adopted as the bylaws of the Authority by the Board of Commissioners on July 8,
1997.
These bylaws were adopted as the bylaws of the Authority by the Board of Commissioners on
September 2, 1998.
These bylaws were amended as the bylaws of the Authority by the Board of Commissioners on
June 7, 2000.
These bylaws were amended as the bylaws of the Authority by the Board of Commissioners on
April 3, 2002.
Page 6
DAWNIWORDIOLLlEIBYLAWSHRA 4/3102
HRA Agenda - 04/05/06
. 11.. Consideration to annrove calline: for a special HRA meetin~.
A. Reference and backe:round:
Agenda item 6. will be addressed at a special meeting of the HRA in order to meet the public
hearing notice publication requirements. See attached from Ehlers.
Also, the year-end financial reports presented by the HRA Treasurer will be presented at the
special meeting.
RECOMMENDATION: Motion to approve calling for a special meeting of the HRA on
Wednesday, April!2, 2006, 6:00 p,m.
.
.
Ollie Koropchak
From:
_Sent:
0:
Subject:
Nikki Shannon [nshannon@ehlers-inc.com]
Friday, March 24, 2006 9:06 AM
Ollie Koropchak; Todd Hagen; mingram@kennedy-graven.com; sbubul@kennedy-
graven. com
Monticello, BS public hearing notice
As I was preparing to e-mail the BS Public Hearing Notice today, I realized I made a big
mistake. I was supposed to e-mail it to the 'newspaper on Friday the 17th not on Friday
the 24th. I apologize for my mistake,
Please let me know when you would like to hold the public hearing and I will go ahead and
send the notice to the paper.
I am truly sorry for my mistake and the problems it has caused.
Nikki
Nikki Shannon
TIF Coordinator
Ehlers & Associates, Inc.
3060 Centre Pointe Drive
Roseville, MN 55113-1105
phone: 651-697-8518
toll free: 800-552-1171
fax: 651-697-8555
nshannon@ehlers-inc.com
This email has been scanned for all viruses by the MessageLabsEmail Security System.
.
.
1
Rick Wolfsteller
From:
.sent:
0:
c: .
Subject:
Ingram, Martha N. [Mlngram@Kennedy-Graven.com]
Friday, March 24, 2006 11 :37 AM
Nikki Shannon; Ollie Koropchak; Todd Hagen; Bubul, Stephen J.
Rick Wolfsteller; Ingram, Martha N.
RE: Monticello,BS public hearing notice
Attachments:
v2 HRA,;.:.,res_approving_SL_contractDOC
v2
"'s~approving_SL_c(
.1 contacted Rick Wolfsteller to discuss whether the HRA could call a special
meeting to hold the public hearing on the business subsidy/land sale, given our time
constraints caused by the council's public hearing on the TIF Plan on April 24th. Rick
stated that the HRA could hold its public hearing at a special meeting on April 12.
Please make a note of this changed public hearing date. I have revised the HRA resolution
approving the Karlsburger contract/business subsidy to reflect the changed circumstances.
Please contact me if you have any questions or comments.
-----Original Message-~---
From: Nikki Shannon [mailto:nshannon@ehlers-inc.com]
Sent: Friday, March 24, 2006 9:06 AM
To: Ollie.Koropchak@ci.monticello.mn.us; Todd Hagen; Ingram, Martha N.; Bubul, Stephen J.
Subject: Monticello, BS public hearing notice
.AS I was preparing to e-mail the BS Public Hearing Notice today, I
ealized I made a big mistake. I was supposed to e-mail it to the
ewspaper on Friday the 17th not on Friday the 24th. I apologize for my
mistake.
Please let me know when you would like to hold the public hearing and I
will go ahead and send the notice to the paper.
I am truly sorry for my mistake and the problems it has caused.
Nikki
Nikki Shannon
TIF Coordinator
Ehlers & Associates, Inc.
3060 Centre pointe Drive
Roseville,MN 55113-1105
phone: 651-697-8518
toll free: 800-552-1171
fax: 651-697-8555
nshannon@ehlers-inc.com
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NOTICE OF PUBLIC HEARING
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
CITY OF MONTICELLO
WRIGHT COUNTY
ST ATE OF MINNESOTA
NOTICE IS HEREBY GIVEN that the Board of Commissioners of the Monticello Housing and
Redevelopment Authority (the "HRA"), Wright County, State of Minnesota, will hold a public hearing on
April 12, 2006, at approximately 6:00 P.M. at the Monticello Community Center, 505 Walnut Street,
Monticello, Minnesota,.regarding two matters:
1 ~ Business subsidy. The HRA will consider a proposed business subsidy to be granted to
Karlsburger Foods, Inc. or a related entity (the "Recipient") under Minnesota Statutes, Sections 1161.993
through 116J.995. The proposed subsidy involves tax increment financing assistance to facilitate development
by the Recipient of an approximately 20,000 sq. ft. manufacturing and warehouse building in the Otter Creek
Crossing Industrial Park in the City of Monticello. Information about the proposed business subsidy, including
a summary of the terms of the subsidy and a copy of the draft business subsidy agreement are available for
inspection at City Hall during regular business hours.
2. Land Sale. The HRA will also conducnt public hearing to consider the proposed sale of
certain land in the Otter Creek Crossing Industrial Park to the business subsidy Recipient described above.
The subject land is expected to be platted as Lot 1, Block 1, Otter Creek Crossing 2nd Addition. The City is
expected to convey the land to the HRA, for reconveyance to the Recipient in furtherance ofthe HRA's goals
for its Central Monticello Redevelopment Project NO.1. A copy of all documents relating to the proposed sale
of land will be on file and available for inspection at City Hall during regular business hours.
All interested persons may appear at the hearing and present their views on the matters to be considered orally
or prior to the meeting in writing.
BY ORDER OF THE BOARD OF COMMISSIONERS OF
THE MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY, MINNESOTA
/s/ Olive KoroDchak
Executive Director
281298vl MNI MN190-123
.
HRAAgenda - 04/05/06
12.
Consideration to authorize payment of HRA bills.
Recommendation-is to approve the monthly HRAbills attached.
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Kennedy & Graven, Chartered
200 South Sixth Street
Suite 470
Minneapolis, MN 55402
City of Monticello
Accounts Payable
505 Walnut Street, Suite 1
Monticello, MN 55362
(612) 337~9300
Tax ID No. 41.1225694
February 28, 2006
Throuah Januarv 31. 2006
MN190-00101 General HRA Matters
MN190-00121 Economic Development TIF (Dahlheimer Distributing)
m))fl::--~I==rf~i
I,' '-', d . I :', \
\:\D Ii, - 5 2085, . 'I
b,~--:-'~"""'~"-~-::,::~v~-;-'.':~ .'"\. "
<, . "."" ,~; "'" t,/, (' .~ I;~I! ~ ~ I, _ ~.. 'e Ii rt, f,
'.'''"\- \" /; .W\:~.., .:,;""\.
'.,..' ""t :: '.~",.i
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128.00
142.50
Total Current Billing:
270.50
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Kennedy & Graven, Chartered
200 South Sixth Street
Suite 470
Minneapolis, MN 55402
.
.
(612) 337-9300
41-1225694
February 28, 2006
Invoice # 70577
City of Monticello
lJ,1o ~o\ . ~o LftJ
?-\3.
Accounts Payable
505 Walnut Street, Suite 1
Monticello, MN 55362
MN190-00101
General HRA Matters
Through January 31, 2006
For All Legal Services As Follows:
1/4/2006 MNI Voicemail toOllieK.re..Walker.
Hou rs
0.10
0.20
0.10
1/5/2006
1/5/2006
MNI Phone call to Ollie K. reo Walker In-Store
MNI Call to Brian at Walker-In-Store reo status of
documentation for TIF assistance.
1/13/2006
MNI Review of TIF Plan modification for TIF Dist. 1-6.
0.40
$
Total Services:
Total Services and Disbursements:$
Amount
16.00
32.00
16.00
64.00
128.00
128.00
.
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Page: 2
Kennedy & Graven, Chartered
200 South Sixth Street
Suite 470
Minneapolis, MN 55402
City of Monticello
L\~ S""?lo
~t ?,
January 31,2006
MN190-00121
Economic Development TIF (Dahlheimer Distributing)
Through January 31,2006-
For All Legal Services As Follows:
1/11/2006 SJB Phone call with O. Koropchak re: IF Joan; revise resolution
Total Services:
Total Services and Disbursements:$
?o ~(V
Hours
Amount
142.50
142.50
0.75
$
142.50
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,~ dL;; iJIUtHiCELLO TIMES
~: 1 C Ej.\~;T RIVER ST PO BOX 420
~ MOC;';:CELLO, MN 55362
~ i)H():~~:: (763)295-3131 FAX (763)295-3080
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~~TICELLO
,. AT CCOUNTS PAYABLE
t.. WALNUT ST" SUITE 1
......., MONTICELLO, MN 55362
':, ~V3. L,(~Selo,Tr~a~'\Oiod: 1/31/2006
Account Number:
Billing Date:
Due Date:
Amount Due:
'I ~)tEl
2/27/2006
3/31/200G
$6,953,85
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f'le;Js,~ ;mJic3la reference nurnber(s) to ensure proper credit ..
Amount Paid:
............................. -...................... .,............ - "........... -........
1'1(';""> "'''''lIIOp ;JOrtlQIl with payment STATEMENT PDOt-. I
AMERIC/\N COMMUNITY NEWSPAPERS dba MONTICEllO TIMES 116 EAST RIVER ST PO BOX 420 MONTICEllO, MN 55362 PHONE (7G3\
)i?/'r'(106
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2/fi/200G
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L'/9/2006
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2/SJ/2005:'i
2/9/:!006
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2/ 1 ~)'200(i
2/1 (j!:.?GO(-i
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2/10/2006
2/1 D/200(j
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2/23/2000
.:zuoo
HpkP-WANTED TCO. EMPL
,- \
~~PER '
CEGA[
SUMMARY BUDGET STATEMENT
172149-001 JJ.f.L2.JCJANTED SHOP, EMPL
SHOP ~UPER
172002-002
TIME
172119
172150-001
SHOP
172150-002
TIME
172300
172301
- G
rf\/'{"'
i'7'Zj02
172303
172362-001
SHOP
172554
172362-002
TIME
172462
172463
172569-001
SHOP
172569~002
TIME
172767
172768
172769
7.900
8.00
19.150
12.500
8.00
12,500
10.00
HELP WANTED SHOP, EMPL
BLDG OFFICIAL
HELP WANTED TCO, EMPL
BLOC:; OFFICIAL
LEGAL '+:tc;.. t-lb
MODIFICATION TIF PLAN
LEGAL
AGENDA
LEGAL') 15.330
PRD~~.SP.lNGS, PRICE INCLUDES 20% DISCOUNT
LEGAL i""-"-' 19.150
PROCE ED I NGS\..J31lJ..&.J
HELP WANTED si=rOP, EMPL 12.500
BLOG OFFICIAL
Check
HELP WANTED TCO, EMPL
BLDG OFFICIAL
LEGAL
ORDINANCE #437
LEGAL
ORDINANCE #438
HELP WANTED SHOP, EMPL
BUILDING OFFICIAL
HELP WANTED TCO, EMPL
BUILDING OFFICIAL
LEGAL 32.900
HEARING, VACATION OF EASEMENTS COMM, PLAZA 25
LEGAL 32.900
HERING, ORDINANCE CHANGING STREET NAME, I'~)! Y)(t."";""
PRAIRIE PONDS
LEGAL
CITY PROJECT #2005-3C
7.900
10.00
\\~~O
19.150
10.00
7.900
10.00
19.150
19.150
12.500
10.00
7.900
10.00
32.900
__mm____u CONTINUED n_____m____
$63.20 -
18.50
$35428 "':,^
'. ~~.: ~
$100,00
$125,00 13
$79,00 g
9.00 $296.10 ~ '=\
10.00 $191,50
70.00 $1,073.10
24.50 $46918-
$125.00 D
$5,658.73
$79.00 t
3.00
$57.45~ P\ny\i\ \i"\
d\(')() (~, 1.<, 1
$86.18 -
~),on (, - ee, 'J
$125.00 t
4.50
$79.00 {'>
10.00
3.00
Ie)
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'..1 ".
4,50 $148.05 -