HRA Agenda 11-18-1998
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AGENDA
MONTICELLO HOUSING & REDEVELOPMENT AUTHORITY
Wednesday, November 18, 1998 - 6:00 p.m.
City Hall
MEMBERS:
Chair Steve Andrews, Viee President Bob Murray, Brad Barger,
Darrin Lahr, and Dan Frie.
STAFF:
Treasurer Rick Wolfsteller, Executive Director Ollie Koropchak,
and Recording Secretary Nancy Whalen.
COUNCIL LIAISON:
Brian Stumpf.
CONSULTANTS:
Rusty Fifield, Ehlers & Associates
Steve Bubul and Dan Greensweig, Kennedy & Graven
1. Call to Order.
2. Consideration to approve the November 9, 1998 HRA minutes.
3. Consideration of adding agenda items.
4.
Consideration to adopt a resolution awarding the sale of Public Project Revenue Bonds,
Series 1998.
5. Consideration to accept or deny a counter-offer for purchase of the property located at
218 Front Street.
6. Consideration to authorize payment of monthly HRA bills.
7. Consideration of executive director's report.
8. Other business.
10. Adjournment.
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HRA Minutes - 11/9/98
MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
MONDAY, NOVEMBER 9, 1998 - 6 P.M.
Members Present:
Chair Steve Andrews, Vice Chair Bob Murray, Brad Barger, Dan Frie and
Darrin Lahr.
Council Liaison:
Brian Stumpf
Staff Present:
Rick Wolfsteller, Jeff O'Neill, Executive Director Ollie Koropchak.
Guest:
Mayor Bill Fair
1. Call to order.
Chair Steve Andrews called the meeting to order at 6 p.m.
2.
Consideration to aoprove the Oetober 14. 1998 HRA minutes.
A MOTION WAS MADE BY DAN FRIE AND SECONDED BY BOB MURRAY TO
APPROVE THE MINUTES, AS WRITTEN, OF THE HRA MEETING OF OCTOBER
14, 1998. Motion carried unanimously.
3.
Consideration of adding item to the agenda.
No agenda items added.
4. Consideration to adopt a resolution awarding the sale of $7.425.000 Public Proieet
Revenue Bonds. Series 1998.
Executive Director Ollie Koropchak introduced the item stating the Dan Greensweig,
City Attorney, and Rusty Fifield, Ehlers & Associates would provide background
information and answer any questions the HRA may have.
Ms. Koropehak also reminded the public that although it was a public meeting, it was not
a publie hearing and therefore not open for public input.
Dan Greensweig, City Attorney, gave a brief description ofthe transaction that would
occur between the HRA and the City of Monticello. The City would lease the land on
which the Community Centcr would be built to the HRA pursuant to a Ground Lease.
The HRA would then lease the land and facility back to the City pursuant to a Lease-
Purchase Agreement. The City would be responsible for construction, opcration and
maintenance of the Community Center. The HRA would issue the bonds with Firstar
Bank of Minnesota acting as trustee thus taking the HRA out of the transaction with no
HRA Minutes - 11/9/98
active role.
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Mr. Greensweig stated the HRA would need to execute the resolution authorizing the sale
of the bonds.
Dan Frie inquired as to whether or not the HRA was entitled to the real estate. Mr.
Greensweig replied that the HRA was not entitled to the real estate.
Brad Barger asked what the ramifications would be if the new City Council taking office
in January, 1999, elected not to proceed with the project.
Mr. Greensweig stated expenses have already occurred and the contract awarded to the
low bidder, Donlar Contractor of St. Cloud. However, the contract itself has not been
signed. It would cost the City money to untangle the process already in place. He stated
that in alllikclihood there would be significant litigation that would take place. For
example, City Hall has already been sold and the City offices would either have to
negotiate with the new owner or movc elsewhere. It is very difficult to be specific;
however, the further the City get in the process, the more expensive it becomes to undue.
Bob Murray stated the City Council had told the HRA the building option they wished to
build and it was now the job of the _HRA to provide the funding for the eommunity
center.
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Brian Stumpf, Council Liaison, stated after the first of the year, he would takc a good
hard look at this issue.
Steve Andrews responded that what would happen after the first of the year was
speculation. Politicians have stated before things that they are going to do and then not
followed through with it.
Bob Murray felt the HRA should not be looking at that what will happen after the first of
the year; but what the present City Council has requested of the HRA which is providing
the funding for the new community center.
Dan Greensweig stated that the HRA was faced with a policy decision. The lease would
limit the risk to the HRA.
Rusty Fifield stated that they had received only one bid for the sale of the Revenue
Bonds, Series 1998 due probably to the size of the project. He distributed a hand-out
outlining the costs associated with the bond sale. The interest rate came in at 5.4915%
which was higher than hoped for due probably to the volume of bonds in the market.
The original estimate of the bond sale was $6,960,000. The increase in the bond sale is
due to actual construction bids verus estimated costs.
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HRA Minutes - 11/9/98
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Rusty Fifield went over the Projected Tax Impact. He stated that at $6,960,000 the tax
impact would be 2.74% net increase, or $42 on a $120,000 home. At $7,460,000 revenue
bond issue, the tax impact would be 3.19% net increase or $48 on a $120,000 home.
Rusty stated that the HRA had three choices.
1. Approve the bond issue at $7,460,000.
2. Approve a smaller bond issue.
3. Reject the sale ofthe bonds and plan another course of action.
If rejected, it is hard to say whether or not interest rates will go lower or higher at a later
date.
Rusty stated the HRA's bond rating is Baal for Lease Revenue Bonds and A3 for GO
Bonds. Because of the financial condition of the City, their ratings are excellent.
Dan Frie asked whether or not there a negative impact on the HRA would result if they
do not make their bond payments.
Rusty Fifield stated the trustee would take action if the City were not to renew their lease.
There would be no financial consequence to the HRA.
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Brad Barger asked for Rusty Fifield's opinion regarding the community center were
something negative to happen at the Council level in January 1999.
Rusty Fifield commented that if the FIRA and City were to proceed and then in January
the Council were to decide not to continue with their lease, there would be serious
consequences in the Bond Market and Construction Market. The 1999 Budget has been
approved and therefore it would have to take effect in 1999 for the budget in year 2000.
By that time there would be significant costs already occurred.
Bob Murray asked who would be liable if the project is stopped in January 1999. This
action could result in a lawsuit against the City.
Brad Barger wanted to know if the project were delayed until January would it be
possible to end the project at this point.
Rusty Fifield stated that it is one thing to say that someone would end it, but once it starts
it will be hard to end.
Darrin Lahr asked about the audit.
Rusty Fifield stated that he had called the auditor's office and had not received a call
back. He is assuming that the audit is not complete.
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HRA Minutes - 11/9/98
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Bob Murray stated that target dates for the community center have been set and that
delaying the project could possibly mean not having the National Guard's participation.
Their participation accounts for 15% of the total costs.
A MOTION WAS MADE BY BOB MURRAY AND SECONDED BY DAN FRIE TO
ADOPT A RESOLUTION AWARDING THE SALE OF $7, 460,000 PUBLIC
PROJECT REVENUE BONDS, SERIES 1998. Discussion was held on the motion.
Brad Barger stated the HRA had established a cap of $9,400,000 and he felt that this cap
had been totally ignored.
Bob Murray stated the $9,400,000 was an estimate in the concept plan. A number of
modifications were made to the building plan that increased the costs. Example, allowing
for a second floor addition in the future. All modifications were approved in steps.
Brad Barger stated that the goal was to cut $500,000 from the $9,400,000 figure. What
happened?
Bob Murray stated the City Council approved a higher dollar amount and the HRA's
position is to provide funding for the City.
Brad Barger statcd that three members of the new Council could undo what thc HRA
does.
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Brad Barger wanted to know what part the audit plays in this process.
Dan Greensweig stated that the auditor is not looking at the wisdom of building a
community center; but if all the procedures were followed and he is confident that they
were.
Dan Greensweig stated the bids have been awarded and if the project does not proceed
there would probably be some type of litigation.
Steve Bubul commented on the letter that Brian Stumpf, Council Liaison, passed out to
HRA members. He stated he had not had a chance to look at the letter and would need
time to review it. Mr. Bubul said potential bond holders needed full disclosure. He
requested a ten minute recess to review the letter and determine what would need to be
disclosed to the potential bond holders.
HRA meeting recessed at 6:50 p.m. Reconvened at 7 p.m.
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Steve Bubul reviewed the letter and felt that the HRA should authorize full disclosure and
to meet again in a week to approve or not approve the final sale. He felt the HRA should
rcject the bids and authorize the financial advisors to negotiate a bond sale with full
disclosure.
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HRA Minutes - 11/9/98
Brad Barger asked if interest rates would go up with full disclosure.
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Rusty Fifield stated that it would raise the risk to investors and that someone would
purchase the bonds but at a higher intcrest rate.
Bob Murray asked about the legal implications on the motion on the table without full
disclosurc.
Steve Bubul stated that without full disclosurc there would be legal ramifications.
Steve Andrews asked if the full disclosure and negotiation for the salc of the bonds could
be done in a week.
Rusty Fificld stated that the sale of these bonds are a difficult issuance and prefers to
meet again in a week to allow time to solicit additional backers.
Bob Murray asked what the risk was to the City without full disclosure.
Steve Bubul stated that there are security laws and that the HRA must provide a full
official statement of risks that the potential investor would face.
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Bob Murray stated that the information provided to the bond bidders was current up to
the point of the letter which had just been provided to the HRA. He felt any change
should come from the City Council.
Darrin Lahr questioncd whether or not the new information being withheld could present
problems in the future.
AFTER DISCUSSION ON THE MOTION, BOB MURRA Y STATED THAT HE WAS
WITH ORA WING HIS MOTION TO ADOPT A RESOLUTION A WARDING THE
SALE OF $7,460,000 PUBLIC PROJECT REVENUE BONDS, SERIES 1998.
Rusty stated that the HRA should do one of the foJlowing:
1. Motion to reject the bid.
2. Proceed to negotiate the sale ofthe bonds with full disclosurc.
3. Consider proposal before the HRA.
A MOnON WAS MADE BY BOB MURRAY AND SECONDED BY DAN FRIE TO
REJECT THE BID PROPOSAL. Voting for Bob Murray, Dan Frie, Darrin Lahr, and
Brad Barger. Opposed Steve Andrews.
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A MOTION WAS MADE BY DAN FRIE AND SECONDED BY BOB MURRAY TO
AUTHORIZE FINANCIAL ADVISOR TO ENTER INTO NEGOTIATIONS, WITH
FULL DISCLOSURE, FOR THE SALE OF $7,460,000 PUBLIC PROJECT
REVENUE BONDS, SERIES 1998. Voting for Dan Frie, Steve Andrews, Bob Murray,
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HRA Minutes - 11/9/98
and Darrin Lahr. Opposed Brad Barger.
Rusty Fifield stated that the sale of these bonds are a difficult issuance and prefers to
meet again next week to give him time to round up additional backers.
Darrin Lahr set a meeting date of Wednesday, November 18, 1998, at 6 p.m.
Executive Director Ollie Koropchak suggested tabling the remaining agenda items.
5. Consideration to accept or deny a counter-offer for purchase of the propertv located at 218
Front Street.
ltem tabled.
6. Consideration to hear a concept plan for redevelopment ofthe North Anchor area.
Item tabled.
7. Consideration to authorize pavment of monthlv HRA bills.
Item tabled.
8.
Consideration of executive director's report.
Item tabled.
9.
Other Business.
None
10. Adjournment.
A MOTION WAS MADE BY BOB MURRAY AND SECONDED BY DARRlN LAHR
TO ADJOURNED THE MEETING AT 7:17 P.M.
Steve Andrews, Chair HRA
Nancy C. Whalen, Recording Secretary
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HRA Agenda - 11-18-98
4.
Consideration to adovt a resolution awardin!! the sale of Public Proiect Revenue
Bonds. Series 1998.
A. REFERENCE AND BACKGROUND:
The lIRA commissioners are being asked to adopt a resolution awarding the sale of
Public Project Revenue Bonds, Series 1998, for the community center. At the suggestion
of the HRA attorney and financial consultant on November 9, the HRA rejected the
award of the sale of $7,460,000 Public Project Revenue Bonds, Series 1998, and
authorized the bond consultant to negotiate with banks and others. The suggestions were
made after submittal of a letter from Councilmembers Herbst and Stumpf and Mayor-
elect Belsaas and the need to disclose the letter prior to awarding the sale of the bonds.
financial Consultant Rusty Fifield will present the new information of the low bidder at
the November 18 meeting.
The following is a recap of resolutions previously adopted by the HRA.
March 4, 1998
Adopted a resolution of official intent to reimburse expenditures
for the armory project. Maximum principal amount was
$9,400,000. This provided the HRA with the flexibility to issue
bonds in an amount not-to-exceed $9,400,000.
October 14, 1998
Adopted a resolution providing for the sale of $6,960,000 Public
Project Revenue Bonds, Series 1998. Bond amount based on
estimates.
The Official Statement dated October 29, 1998, which was delivered to you earlier noted
an (*) by the $6,960,000. This * denoted the Issuer reserves the right, after bids are
opened and prior to award, to increase the principal amount of the Bonds, etc.
On November 2, 1998, after consideration of base construction bids received and the
alternatives, additions, and subtractions; the City Council approved a motion to accept
and award the community center construction bid to Donlar Contractors as identified
under Option 2 with the inclusion ofthe operable partition. With the motion of the
Council on November 2, the total project cost including issuance cost was $10,199,000,
estimated bond sale of $7,425,000.
On November 9, 1998, the bond issuance request was at $7,460,000 plus the up-front
revenues of $2,774,000 gave a total project cost of$10,234,000. Annual debt service on
bonds was $619,104.
HRA Agenda - 11-18-98
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As the debt service keeps increasing, the HRA should consider weighing the annual debt
service and the annual operation costs and ask: Are too many eggs being put into one
basket?
B. ALTERNATIVE ACTION:
1.
A motion to adopt the resolution awarding the sale of
Project Revenue Bonds, Series 1998.
Public
2. A motion to deny adoption of the resolution awarding the sale of
Public Project Revenue Bonds, Series 1998.
3. A motion to table any action.
C. RECOMMENDATION:
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It is assumed, the City Administrator recommends awarding the sale of the bonds as
presented by the financial consultant. The Administrator is out-of-town at time of agenda
preparation. The Executive Director recommends the HRA consider capping the debt
service consistent with the $10,199,000 City Council direction of N ovem ber 2 allowing
the elected officials to the consider managing any additional costs. The City
Administrator and Executive Director support the project and agree the project is
consistent with the City Council's motion of November 2, the project provides for the
construction of a community center with multi-uses which will accommodate the cross-
section of age groups within our draw area. The selected materials increase the
community center's longevity and controls maintenance. The community center is
consistent with the City's Comprehensive Plan and is an implementation of a goal
identified in the Downtown/Riverfront Revitalization Plan. The community center will
assist in attracting new residents and home-buyers creating an economic spin-off to the
retail, commercial, and industrial businesses.
D. SUPPORTING DATA:
None. Presented at meeting.
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HRA Agenda - 11/18/98
5.
Consideration to accept or deny a counter-offer for purchase of the prooerty located
at 218 Front Street.
A. REFERENCE AND BACKGROUND:
At the HRA meeting of October 14, 1998, the commissioners amended a motion to
include two counter-offer options. Options were subject to legal opinion on the
requirements of paying relocation benefits. Please read the attached letter to the seller
summarizing the HRA's offer options.
Additionally and attached is a summary of the investment by the HRA over time based on
the two offer options. Relocation benefits are required upon acquisition or closing of a
purchase option per Attorney Greensweig.
The seller has submitted a written response to the HRA's two offer options accepting
Package A.
B. ALTERNATIVE ACTION:
1.
A motion ratifying the terms of Package A as outlined by the HRA and acceptable
to the seller, and authorizing legal counsel to prepare documents.
2. A motion accepting the cash buy-out at $86,000.
3. A motion to table any action.
C. RECOMMENDATION:
Recommendation is Alternative No.1.
D. SUPPORTING DATA:
Copy of October 23, 1998 letter summarizing HRA's two counter-offer options and
summary of HRA investment. Copy of submitted written response from seller.
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October 23, 1998
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MONTICELLO
Mrs. Deb Otten
7183 Cahill Avenue
Monticello, MN 55362
Re: Real estate property located at 218 Front Street.
Dear Deb:
Thank you for your telephone call of Wednesday. I did proceed to call and check with the HRA
Commissioners for a clarification of the motion and amended motion. My apologies for misunderstanding
the amended motion. I understood the amended motion (counter-offer Package B) to mean a replacement of
the original motion (counter-offer Package A); however, the commissioners' amended motion was a counter-
offer including both Package A and Package B. Package B which includes an annual fee of $2,000 was
added to accommodate the seller's annual expenditure of taxcs and insurance during the 3-year option. The
following is a recap of the offer and counter-offers as per the direction of the HRA commissioners.
Date
Purchase Price Option Fee
Purchase Price Increase
4% annual increase
at anniversary date.
4% annual increase
at anniversary date.
4% annual increase
at anniversary datc.
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HRA
offer
9/2/98
$81,000
3-year option.
Non-refundable
annual fee of$I,OOO.
Not applied to
purchase price.
Seller counter- 10/14/98
offer
$86,000
Cash buyout
1/1/1999.
HRA counter-offers:
Package A 10/14/98
$84,000
3-year option.
Up-front $3,000
non-refundable fee.
Not applied to purchase
price.
Package B
10/14/98
$81,000
3-year option.
Annual fee of $2,000.
Annual fee disbursal of
$1,000 non-refundable
and $1,000 applied to
purchase price.
Monticello City Hall, 250 E. Broadway, PO Box 1147, Monticello, MN 55362-9245. (612) 295-2711. Fax: (612) 295-4404
Office of Public Works, 909 Golf Course Rd., Monticello, MN 55362 . (612) 295-3170. Fax: (612) 271-3272
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Mrs. Otten
Page 2
October 23, 1998
The HRA counter-offers were subject to a legal opinion on the requirements of relocation benefits.
Should you have additional questions, please do not hesitate to call me at 271-3208. The next HRA meeting
is scheduled for 6:00 p.m. on November 9, 1998. Ifpossible a response to the HRA counter-offers in ",Titing
would be appreciated for distribution to the commissioners on November 5. The HRA looks forward to
hearing from you and thanks you for your time. Deb, again, my apology.
Sincerely,
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO
C)~ \~CJ\u~~
Ollie Koropchak
Executive Director
c: HRA File
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RECAP 218 FRONT STREET OFFER
Package A
$84,000 - 3-year option
Up-front $3,000 non-refundable fee.
Not applied to purchase price.
4% annual increase at anniversary date.
Price at anniversary date:
Year 1 - $87,360
Year 2 - $90,854.40
Year 3 - $94,488.58.
Package B
$81,000 - 3-year option
Annual fee of $2,000.
Annual fee disbursal of
$1,000 non-refundable and $1,000
applied to purchase price.
4% annual increase at anniversary
date.
Price at anniversary date:
Year 1 - $84,240
Year 2 - $87,609.60
Year 3 - $91,113.98 less applied fee of
$3,000 = $88,113.98.
The annual fee of $2,000 was to assist the
seller with upfront holding expenses of taxes
and insurance, a concern of the seller.
Murray's point was long term over 3 years
better deal for seller. 1998 Taxes $821.89.
Assesssments $369.21 delinquent utility bills
and compose fee.
The seller must terminate the month-to-month lease with the current tenant prior to an HRA
acquisition then no relocation benefits apply. Relocation benefits approximately or up to $20,000.
Is the HRA purchase option the same as an HRA acquisition?
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November 4, 1998
Debbie Otten
7183 Cahill Ave NE
Monticello,-MN. -55362
To the HRA for the City of Monticello:
lam_writing to.infbrra)lOU-of~ dec.i!':inn.to-accept-your offeLofDctoher.14, 1998
regarding the real estate property at 218 Front Street.
The-offer -Lam accepting.isPac.bep. A:__PJlrc.hl'l!':e price-$84,.ooo., _with aJ year_optipn and
an up-front $3,000 non- refundable fee, not to be applied to the purchase price, with a
purchase-price-increase ot: 4o/~-;:mm Il'l 11y.onthe.-anniversaryda.t.e of thi s trl'ln~action.
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Please have the HRA attorney prepare the documents and notify me.
Sincerely:
~ {)t;[L~
Debbie M. Otten for Michael O'Connor, Owner-
s/~
so.llmportant Definitions .......
Acquiring
Agency
Business
Displaced
Person
l>\
,
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This means an agency which has the
authority to acquire property by eminent
domain (conde mnation).
Any lawful activity, with the exception of a
farm operation, conducted primarily for the
purchase, sale, lease, or rental of personal
or real property, or for the manufacture,
processing, or marketing of products,
commodities, or any other personal
property, or for the sale of services to the
public.
Any person (individual, family, corporation,
partnership, or association) who moves
from real property or moves personal
property from real property as a direct
result of the acquisition of the real property,
in whole or in part, or as the result of a
written notice from the agency to vacate the
real property needed for a project. In the
case of a partial acquisition, the agency-
shall determine if a person is displaced as a
direct result of the acquisition. Relocation
benefits will vary, depending on the type
and length of occupancy as discussed later.
As a displacee, you will be classified as:
o An owner occupant of a residential
property (includes mobile homes)
A tenant occupant of a residential
property (includes mobile homes and
sleeping rooms)
o A business, farm, or nonprofit
organ ization.
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Any activity conducted solely or.marilY
for the production of one or more
agricultural products or commodities,
including timber, for sale or home use, and
customarily producing such products or
commodities in sufficient quantity to be
capable of contributing materially to the
operator's support.
Nonprofit A public or private entity that has
organization established its nonprofit status under
applicable federal or state law.
Farm
INTENT OF THIS BOOKLET
The relocation laws and regulations are
quite complex. This booklet is not meant
to discuss in detail the law and its
procedures. It is meant to give an
overview of the Federal and State
program. Please discuss all aspects of
your proposed relocation with your
displacing agency representative to
ensure your eligibility and prompt
reimbursement of claims. Always contact
your relocation advisor before you move
or finalize your plans.
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HRA AGENDA - 11/18/98
6.
Consideration to authorize Davment of monthly ORA bills.
Recommendation is to authorize payment of monthly bills.
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Document. Number:
0046j <;
Document, Date: 10/2A/8f1
Sold
To:
HOUSING AND REDEVELOPHENT
AUTHORITY IN AND FOR THE
CITY OF MONTICELLO MN
3hjD
To:
81-: i l? V i a. :
Shio Date: 10/26/98
Due Date.: 11/05/98
Terms. ...: NET 10
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P.O. Date....: 10/26/98
.](.)b/Order No.:
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Orderer.i
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Unit
Price
10/22/98
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DEMOLITION OF HOUSE ON 225 WEST
RIVER ST. MONTICELLO MN 5536~
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Costs of Proposed HRA Lot Improvements
lliID1 Unit Cost Quantity Total Cost Vl-?'1 \.Jllf"\ .SS
to ,")> ~ CO lt3
Tables - all concrete with 4 attached seats $ 549.00 4 $ 2,196.00 , 'D . -
66"x 66"x 29" ~ '?~
Canvas Umbrellas, 7.5 ft diameter 115.00 4 460.00 ~ <Iv ~ g14 .
~
Umbrella base stands 25.00 4 100.00 '?J.
Park Benches - aluminum cast with red 249.00 2 498.00
wood slats, 6 ft long
Crushed granite with lime to cover lot
provided by Public Works
Split Rail Fence, two 20 ft sections
Rails 7.49 8 59.92
Line Posts 8.00 2 16,00
End posts 7.79 4 31.16
'. Flowers - annuals 2.50 60 150.00
Flower Planters - 6 triangular style
Provided by MCP
Bushes - arborvitae 24.99 2 49.98
Bush Planters - 10 gal ceramic 39.99 2 79.98
Potting Soil - 40 Ib bags 3.99 16 63.36
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. Hose (180'), spray nozzle & reel 100.00
Garbage Can - 90 gal roll-away
Provided by Public Works
Labor - Set Up and Maintenance
Provided by Public Works and
Mep Volunteers
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Total Cost.
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KAY PARK-REC CORP. {/,\' \J^
1301 PINE ST. '-<( J~~'f~ - 1
P.O. BOX 477 AtJ
JANESVILLE IA 50647-0477 0
WATS 800-553-2476 FAX 319-987-2900
P
DATE: 07/27/98
Sold To:MONTICELLO PARKS & REC DEPT
909 GOLF COURSE RD
MONTICELLO, MN 55362
Ship To:SAME
PO DATE SLS/DIST CUST PO#
DATE SHP. PRO #
CARR FOB
TERMS
==========================================================:======::============
06/29/98 MNP/MNP 07/16/98 NONE EMBE FCTY NET/30
==================VERBAL GREG==================================================
ORDER SHIP DESCRIPTION ITEM # PRICE EXTENSION
===============================================================================
4 4
HUNTER GREEN
VINYL UMBRELLA
OT/UV
158.00
632.00
1
1
FREIGHT
FR/FREIGHT
15.55
15.55
. S vY' '{f',y-'Q ~ Q...,...
~ ~ I!Y-
~& ~ ~~
...
a- \.
~/3
.
UNPAID BALANCES WILL ACCRUE A S/CHARGE OF 1 1/2% PER MONTH (18% PER ANNUM).
===============================================================================
NON-TAXABLE
647.55
TAXABLE
.00
SALES TAX
.00
FREIGHT
.00
DISC
.00
***> TOTAL
647.55
F 1 a n a g a n ~ ~ \ IS ~ ~nvoice
S ale s I n c .
~ l~ if (\ ~cP DATE INVOICE NO.
~ 8/26/98 8021
BILL TO
Monticello Park & Recreation
250 E. Broadway
Box 1147
Monticello, MN 55362
SHIP TO
909 Golf Course Road
P.O. NO.
TERMS
REP
SHIP DATE
SHIP VIA
PROJECT
Greg Engle
20 DAYS NET
MPD
8/18/98
American
ITEM
DESCRIPTION
Four Seat Table - vinyl clad top and seats-
J-Leg style frame in
green (275-4YV)
QTY UNIT PRICE
AMOUNT
100000251
4 489.00
1,956.00
100000381
Park Bench - 2-3/8" galvanized frame-
vinyl clad seat and back
(349-6GV)
2 240.00
480.00
Freight
Shipping Charges
Sales Tax, Minnesota
272.00
6.50%
272.00
158.34
~Ji ~! ,
~~
tv--~
YOU! WE APPRECIATE YOUR BUSINESS
Total
.
$2,866.34
ar~aeC~d 2845 lIamline Avenue North · Suite 108 · Roseville · MN · 55113
651 e Phone: 612.633.0123 · 1.800.328.3557 · Fax: 612.633.1515 · E.mail: FSaleslnc@aol.com
.
~
"CITY OF MONTICELLO
! P.O. BOX 1147
: MONTICEllO, MN 55362
',: 295.2711
PRESENT
PREVIOUS
3830
3800
.
'tj;~ ..L. \~??-
'Q\~ '\
OPENING
BAt ANCl'
PA YMf NTS
PENAL nES
ADJU5 T MEN IS
AMOUNT
USED
30
LEAF PICKUP IS OCT 31.
CODE
WR
SW
HAVE YOUR
READING DATES
PREVIOUS 8/'1 8/9 8
PRESENT 1 0/0 1 /9 8
ACCOUNT NO
]01-0043-00-00
~ . .'
.~
~
NET AMOUNT
AFTER HilS DATE
PAY PAST DUE AMT.
PAST DUE AMOUNT
AMOUNT
MAIL TO
.
PRESORT
Fi rsl Oass Mail
U,S POSTAGE
PAlO
PERMIT 42
3.67
4 .8 9fT'" 01 I T F
, RA OF MONTICEL~
: 0 BOX 1'j 47
MONTICELLO MN
:5 5 3 6 2
ACCOUNT NO,
NET AMOUNT
11/23/98
8.56
8 . 9 1
A~ER THIS DArE
"'" I\OSTOUE AMI
001-0043-00-00
8.56
11/23/98
8.91
PAST DUE AMO U NT
~
: .. QR.O 3fR.
I CITY OF MONTICEllO
I PO, BOX 1147
,: MONTICellO, MN 55352
98
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KENNEDY & GRAVEN
Chartered
200 South Sixth Street, Suite 470
Minneapolis, MN 55402
(612) 337-9300
November 6, 1998
City of Monticello
Ollie Koropchak
City Hall
P.O. Box 1147
Monticello, MN 55362-9245
MNI90-00062: Fay-Mar Expansion
Invoice # 26740
Through October 31, 1998
For All Legal Services As Follows:
10/19/98 SJB Phone call with 0 Koropchak re Musich Contract, 0.30 40.20
certification of compliance
Total Services:
.
For All Disbursements As Follows:
10120/98
10/20/98
Photocopies
Postage
Total Disbursements:
Total Services And Disbursements:
.
$
40.20
$
0.80
0.55
1.35
$
41.55
~-\p
KENNEDY & GRAVEN
Chartered
200 South Sixth Street, Suite 470
Minneapolis, MN 55402
(612) 337-9300
November 6, 1998
City of Monticello
Ollie Koropchak
City Hall
P.O. Box 1147
Monticello, MN 55362-9245
MNI90-00066: Community Center Financing
Invoice # 26741
Through October 31,1998
For All Legal Services As Follows:
.
10/01198 DJG
10106/98 DJG
10109/98 DJG
10/12/98 DJG
10/15/98 DJG
10/19/98 DJG
10/22/98 DJG
10/23/98 DJG
10/24/98 DJG
10/26/98 LMW
10/26/98 AJB
10/26/98 DJG
Phone call with B. Johnson; revise contract
accordingly
Draft cover letter re execution of operating
agreement
Phone calls and research re Little Davis-Bacon
Research Davis-Bacon issues
Review bond documentation for state auditor
submission
Prepare auditor's submission
Prepare letter and other documents for state auditor
Conference phone call re right-of-way issues
Research and prepare memo re right-of-way issues
Intraoffice conference re title and right of way
Locate AG opinion on right of way
Research; phone calls re right of way issues
Total Services:
For All Disbursements As Follows:
.
1 % 1/98
10/05/98
10/06/98
10/06/98
10/06/98
10/06/98
10/06/98
10106/98
10/07/98
10/22/98
10/26/98
10/26/98
10/26/98
10/27/98
Fax
Photocopies
Fax
Fax
Fax
Fax
Photocopies
Photocopies
Messenger Service-LL
Fax
Postage
Photocopies
Fax
Fax
0.60
0.30
2.40
2.10
1.20
3.20
3.80
1.80
6.70
0.50
0.50
4.70
$
~'1
'.
63.00
31.50
252.00
220.50
126.00
336.00
399.00
189.00
703.50
72.00
32.50
493.50
2,918.50
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
141.43
0.00
8.03
0.00
0.00
0.00
Continued on Next Page
.
.
.
KENNEDY & GRAVEN
Chartered
200 South Sixth Street, Suite 470
Minneapolis, MN 55402
City of Monticello
Ollie Koropchak
Page 2
MN 190-00066: Community Center Financing
Total Disbursements:
Total Services And Disbursements:
$
149.46
$
3,067.96
lo/~
KENNEDY & GRAVEN
-'
,~
Chartered
200 South Sixth Street, Suite 470
Minneapolis, MN 55402
(612) 337-9300
November 6, 1998
lf Monticello
Koropchak
Iall
'~ox 1147
icello, MN 55362-9245
90-00072: Economic Development TIF 1998
Invoice # 26742
19h October 31, 1998
.ll Legal Services As Follows:
10/06/98 SJB Phone call with O. Koropchak re job and wage
issues; review contract
Total Services:
.
Total Services And Disbursements:
.
0.25
33.50
$
33.50
$
33.50
67.00
67.00
27.40
3.00
30.40
97.40
~/~
.
.
.
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KENNEDY & GRAVEN
Chartered
200 South Sixth Street, Suite 470
Minneapolis, MN 55402
(612) 337-9300
November 6, 1998
City of Monticello
Ollie Koropchak
City Hall
P.O. Box 1147
Monticello, MN 55362-9245
MN 190-00076: TIF 1-25 (B&B Metal Stamping)
Invoice # 26744
Through October 31, 1998
For All Legal Services As Follows:
10/01/98 SJB Review Subordination Agreement; draft releases; 1.75
letter to O. Koropchak re same; draft letter to bank
10/02/98 SJB Phone call with O. Koropchak re contract, releases; 0.50
revise same; phone call with B. Larson
10/12/98 SJB Phone call with 0 Koropchak 0.50
Total Services:
For All Disbursements As Follows:
10/01/98
10/02/98
10/02/98
10/02/98
10/13/98
United Parcel Service - delivery charge
Photocopies
Postage
Messenger Service-LL
Fax
Total Disbursements:
Total Services And Disbursements:
$
239.75
68.50
68.50
376.75
$
16.20
17.40
0.55
5.00
3.50
42.65
$
419.40
~ ___I'D
.
KENNEDY & GRAVEN
Chartered
200 South Sixth Street, Suite 470
Minneapolis, MN 55402
(612) 337-9300
CLIENT SUMMARY November 6,
City of Monticello
Ollie Koropchak
City Hall
P.O. Box 1147
Monticello, MN 55362-9245
Through October 31,1998
MN190-00062: Fay-Mar Expansion
MN190-00066: Community Cen~er Financing
MN190-00072: Economic Development TIF 1998
MNl90-00073: St. Ben's Housing Development
MNl90-00076: TIF 1-25 (B&B Metal Stamping)
.
Services Rendered:
Disbursements:
Balance Due:
.;~:':'.7'i'Jt h'-~~A' p{.;~:~H~~.' c;: !cl,ff
.;,:,.. .. r ~ ~ ._.' .".., .'. +- oJ ..~ _.'. .'
~ 11~~ ...:t.....:\..~.!1 '.. ~,::.I.'.'"1 ,.J! .~~,.,Xr.:;
$ 41.55
$ 3,067.96
$ 33.50
$ 97.40
$ 419.40
$ 3,435.95
$ 223.86
$ 3,659.81
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Monticello HRA
PO Box 1147
Monticello MN 55362-9245
November 10, 1998
MC100-27
TIF District No. 25
Invoice # 15529
Hours Amount
9/10/98 RC Memo requesting documents
10/9/98 RC Prepare books and certification
10/12/98 JA Certification of District. Prepare Certification letters.
JA Professional Services. Prepare TIF Books.
10/13/98 RC Sample forms and books
0.25
1.50
0.50
0.50
0.75
26.25
157.50
52.50
52.50
78.75
Total Due This Month:
Previous Balance: ? c:9c..o ~
,
~
~
3.50 $367.50
(f682.50)
~~
Total Balance Due:
$1,050.00
.
~/l?-
PLEASE KEEP WHITE COPY FOR YOUR FILE AND REMIT PINK COpy WITH PA YMENT TO:
.
.
EHLERS
& ASSOCIATES INC
3060 Centre Pointe Drive
Roseville, MN 55113-1105
651.697.8500
.
.
-'( 0~ '
~
Monticello HRA
PO Box 1147
Monticello MN 55362-9245
November 10, 1998
0.25
1,50
0.50
0.50
0.75
MC100-26
District 1 ~24
PLEASE KEEP WHITE COPY FOR YOUR FILE AND REMIT PINK COPY WITH PA YMENT TO:
.
EHLERS
& ASSOCIATES INC
Invoice # 15528
Hours Amount
9/10/98 RC Memo requesting docs for certification
10/9/98 RC Prepare TI F books & certification letter
10/12/98 JA Professional Services. Prepare TIF Books.
JA Certification of District. Prepare Certification letters.
10/13/98 RC Sample forms & TIF books
26.25
157.50
52.50
52.50
78.75
Total Due This Month:
3.50 $367,50
Total Balance Due:
$367.50
~/\3
.
3060 Centre Pointe Drive
Roseville, MN 55113-1105
651.697.8500
.
.
\\A ~ -- ~ Monticello HRA
'\\'- ~ .. PO Box 1147
r Monticello MN 55362-9245
November 10, 1998
MC100-05 CITY ~WIDE PROFORMA
Invoice #
Previous Balance: ...." cl..a- Jc.-. ~
Q
Amount
~~~
Total Balance Due:
$603.75
lo-\~
.
PLEASE KEEP WHITE COPY FOR YOUR FILE AND REMIT PINK COpy WITH PA YMENT TO:
.
EHLERS
& ASSOCIATES INC
3060 Centre Pointe Drive
Roseville, MN 55113-1105
651.697.8500
.
.
.
HRA Agenda - 11/18/98
7.
Consideration of executive director's report.
a) 225 Front Street - Initially, this was planned as an agenda action item; however, with
the scheduled bond sale and North Anchor presentation combined with a less than one-
hour meeting, the HRA will consider action at the December meeting. The Carlson's
declined the City Council's right offirst refusal; however, inquired to the use/rental of the
HRA garage. See attached letter.
b) 3 Walnut Street - After showing the Schliefhouse to the second interested party, they
decided not to rent. I'm proceeding to contact the last interested party prior to
advertising in the local newspaper. Enclosed is an estimate for repairs ofthe structure
from Rolfe McAfee per the assessment made by the Building Official. Mark Theisen
and/or the Public Works Department offered to repair the roof, not re-shingle, for a cost
less than $500 plus costs for other minor repairs. They can begin work Tuesday,
November 10. Unless the lIRA disagrees, I'll authorize the Public Works to do the
repaIrs.
c) 225 West River Street - Note the Hawkins house is gone. The Parks Department
seeded the parcel and the demolition contractor's invoice is authorized for payment.
d) Housing Project~ Developer Larson requested to be on the HRA agenda for a concept
presentation for redevelopment of the Klucas property on the west end of town. He was
deferred to the December meeting.
e) Minnesota and 6 Street - I ran TIF estimates for a developer interested in the
redevelopment of this area for the construction of 10 owner-occupied town homes. With
the cost to acquire the properties, TIF assistance, and value of new town homes, the
project still did not cashflow. Interestingly, the area does not qualifY for a redevelopment
district therefore a housing district was proposed.
f) Private Redevelopment Contracts - Enclosed are letters to two redevelopers as a
reminder of the terms and conditions of the contracts.
g) For your information, the Council reduced the lIRA request for $75,000 Industrial
Reserve Fund to $25,000 for budget year 1999. The marketing budget under economic
development is $35,000.
h) Industrial Brochure - Enclosed is the new industrial brochure. Please assist us in
marketing Monticello as a place for industrial development. Please refer leads to my
office. Brochures are being mailed on a monthly basis.
i) Industrial Leads - A couple of good leads have materialized. No commitments.
.
JOHNSON, LARSON, & PETERSON, P.A.
ATTORN S AT LAW
JAN C. LARSON+
JOHN T. PETERSON+
JUHL S. HALVORSON
CINDI S. MATT
+Real Property Law Specialist
Certijled by Minnesota State Bar Association
October 29, 1998
Ms. Ollie Koropchak
City of Monticello
P.O. Box 1147
250 East Broadway
Monticello, MN 55362
Re: Richard and Marion Carlson Property/Purchase Agreement
Dear Ms. Koropchak:
.
My clients have contacted me concerning the offer extended by the City during the City
Counsel's October meeting, offering to pay the sum of$500.00 to the Carl sons for a Right of
First Refusal on the property. My clients appreciate the offer, but decline to accept same at this
point in time. Based upon attorney's fees they have incurred to date, coupled with future
attorney's fees in the review and examination of any Right of First Refusal Agreement, when
compared to the $500.00 sum offered by the City, it would not be cost effective to them at this
time to accept such an offer.
My clients have also asked me to follow-up on an offer made by the City during formal
discussions occurring in October of 1997. At that time, the City had offered the Carl sons the use
of the City garages located across the street from their property. The Carl sons would like to
pursue this matter further, and discuss the use/rental of the City garages for the purpose of storing
additional property that they have which was previously stored in their garage, which as you are
aware, they no longer have. For the purpose of discussing use and rental by the Carl sons of the
City's garages located across from their property, I would ask that you contact the Carlsons
directly. However, any further discussions relating to the purchase of the Carlson property
should remain directed to this office. Thank you.
May I remain,
'l~
.
JTP:rnar
.
r
;
.
.
NOV- 5-98 THU 11: 16 AM TWIN CITY HARDWARE
FAX NO. 612 535 2005
ESTIMATE
11-5-98
ROLFE McAFEE
PO BOX 551
MONTICELLO MN 55362
612-295-5053 HOME PHONE
612-535-4660 8AM-SPM M-F
612-535-2005 FAX
P. 2
THIS ESTIMATE IS FOR THE LIST OF J08S GIVEN FOR THE HOUSE ON 3 WAlNUT STREET BY OLLIE K. BID ASSUMES
HRA WILL PAY FOR BUILDING PERMIT. ALL DISPOSAL AND HAULING OF ROOFTEAR OFF DEBRIS IS INCLUDED IN BID.
BATHROOM:
RECAULKTUB, REFIT DOOR AND REPLACE LOCK
ADVISE If NEW TOILET SEAT REQUIRED. OLD ONE IS CRACKED. NO BID FOR THIS ITEM INCLUDED.
UPSTAIRS NORTH BEDROOM, HALL:
REPLACE LIGHT FIXTURE IN NORTH BEDROOM, REPAIR/REPLACE FIXTURE IN HALL
SMOKE OETEcrORS:
INSTALL 5 DETECTORS TO MEET CODE. 3 UPSTAIRS, 1 LIVING ROOM, 1 BASEMENT.
FIRST FLOOR:
REPAIR/REPLACE CLOSET CEILING. REPLACE INSULATION.
REPAIR/REPLACE DAMAGED EAST PORCH CEILING AND WALL PANELS, MOULDINGS.
BASEMENT:
REMOVE AND DISPOSE OF CRAWL SPACE DEBRIS, DISMANTLE & REMOVE OLD FURNACE,
FURNACE PARTS.
GARAGE:
REMOVE AND DISPOSE OF Oil BURNER.CHIMNEYTO REMAIN.
TRE.E BRANCH:
REMOVE AND DISPOSE OF HANGING TREE BRANCH ON SOUTH WEST CORNER OF lOT.
$80.00
$55.00
$100.00
$200,00
5225.00
S 120.00
$80.00
S7S.00
ROOFING:
RE.ROOF 1/2 OF GARAGE ROOF OVER EXISTING (NO TEAR OFF), REPAIR SHINGLES NW CORNER
OF HOUSE ROOF, REPLACE BROKE.N ROOF\FASCIA BOARDS, SHINGLES SW SIDE Of WEST ROOF PEAK. ..illiM9..
TOTAL BID: $2,095.00
.
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October 20, 1998
--
MONTICELLO
Mr. Barry Fluth
BBF Properties
19577 180th Avenue
Big Lake, MN 55309
Re: Private Redevelopment Contract between BBF Properties and the Monticello HRA
Dear Barry:
The intent of this letter is a reminder of the need for BBF Properties to submit to the HRA written evidence
that BBF Properties has paid public redevelopment costs in at least the principal amount of $500,000 in
order for the BRA to deliver the $500,000 Taxable Tax Increment Revenue Note. The Note to be delivered
in accordance to certain Private Redevelopment Contract between BBF Properties and the Monticello HRA
dated March 20, 1998. Please refer to ARTICLE 111, Public Redevelopment Costs, page 7 of the Contract.
.
Enclosed is an accountability of the public redevelopment costs and the amount paid and satisfactory to the
HRA ($153,730.41) as of October 20, 1998. The four columns represent relocation and demolition costs
submitted by BBF to Dan Wilson, Wilson acceptance of eligible TIF relocation and demolition costs,
disbursement of funds by lender, and HRA acceptance of paid and eligible relocation costs. I did contact
Barb Kennedy at US Bank, St. Cloud, a few days ago for an update of disbursements relating to the eligible
public redevelopment costs.
You will note, the Note shall bear interest at a rate of7.5% from the date of delivery of the Note. The HRA
will deliver the Note upon BBF Properties submitting to the HRA satisfactory written evidence that BBF
Properties has paid public redevelopment costs in at least the principal amount of $500,000 in accordance to
the Contract.
Should you have any questions, please do not hesitate to call me at 271-3208.
Sincerely,
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO
~~ K C,t\u ~..0~
Ollie Koropchak
Executive Director
Enclosures
.
c:
Brad Larson, Attorney
Steve Bubul, HRA Attorney
TIF District No. 1-22 File
7F
Monticello City Hall, 250 E. Broadway, PO Box 1147, Monticello, MN 55362-9245. (612) 295-2711. Fax: (612) 295-4404
()ffk~ of Pllhlic: Works f)W) Golf rllllrS~ Rd Mnnli....II11 MN 'i'i1n"1 . (n 1"1) 1C)'i 1170. Pax' (fi 1"1) '171 1"17"1
~,:lll,
~
t
t!.
I
Relocation
~
Skillet Jun 98
Hallmark
H&R Block
Wright Way
Small Tenants
Companion Pets $3,000
Renaissance West $3,000
Monticello Optical $3,000
Northstar Capital $5,000
Barbara Lee's Dance $3,000
Weight Watchers $200
Demolition
JME June 98
(grading, utilities)
.
Site Improvements
Parking lot
Site light
Soil Test
Landscaping
TOTALS
.
BBF Properties, Inc.
TlF Accountable Expenditures
Not-to-exceed $500,000
BBF
Wilson
Bank
11M.
$293,000.00 $ 75,859.36 $283,000.00 $ 75,859.36
$ 47,468.28 $ 47,468.25 $ 13,233.09 $ 13,233.09
$ 24,696.39 $ 24,696.39 $ 24,696.39 $ 24,218.98
$ 23,218.98 $ 23,218.98 $138,377.99 $ 23,218.98
$ 17,200.00 $ 17,200.00 $ 17,200.00 $ 17,200.00
$156,957.00 $156,957.00
$100,000.00
$ 36,000.00
$ 1,600.00
$ 17,000.00
$562,540.65 $500,000.00 $476,507.47$153,730.41
7~
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October 19, 1998
fILE COPy
lilt ~tl.;J
MONTICELLO
Mr. Paul Ederer
Allied Companies
20600 County Road 81
Rogers, MN 55374
Re: Private Redevelopment Contract.between Allied Companies, LLC and the HRA.
Dear Paul:
This is a letter of concern relating to the Private Redevelopment Contract between Allied Companies, LLC
and the Monticello HRA dated June 3, 1998. The Office of the HRA received a fax from Steve Krenz,
Midwest Graphics, on October 6, 1998 relating to hiring often new employees. We share in the excitement
of hiring ten new employees; however, our concern is the starting pay of$8.00 per hour.
Per the Contract, ARTICLE Ill, Acquisition of Property: Site Improvements: Financial Assistance Section
3.7. Job and Wage Covenants. (a), the developer agreed to pay an hourly wage of at least $8.24, exclusive of
benefits. Section 3.7 (b) further states that during the life of the contract at least 90% of the jobs must pay a
rate equal to or greater than the 160% of the federal minimum wage for individuals over the age of20.
Today's federal minimum wage is $5.15. The HRA's concern lies with the non-compliance clause: Ifthe
developer fails to comply with any of the ternlS of Section 3.7(b), the developer shall repay to the HRA any
payments made by the HRA to the developer pursuant to the agreement. The hope of the HRA is by raising
the concern early the potential non-compliance issue is resolved and prevented.
Section 3.7 (b) was approved in tile 1998 regular legislative session and became effective for tax increment
financing districts requesting certification after April 30, 1998. This was the resolution to the "Green
Acres" issue.
Again, Paul, this letter is intended to raise the concern early in order to remedy the situation ahd prevent non-
compliance of the contract. Should you have any questions, please do not hesitate to call me at 271-3208.
Sincerely,
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO
CJ~ \~6\~iL~~
Ollie Koropchak
Executive Director
ir:-
e: Steve Krenz, Midwest Graphics
TIF District No. 1-23 File
Monticello City Hall, 250 E. Broadway, PO Box 1147, Monticello, MN 55362-9245' (612) 295-2711. Fax: (612) 295-4404-
Office ofPllhlic Works. 9O<} (Inlf('ollTSC Rd MOlltiel'lIn. MN ')')102. (01'2) '29')-1170. Pnx' (01")")711"7"