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HRA Agenda 03-06-1991MINUTES MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY Wednesday, January 23, 1991 - 11:40 AM City Hall MEMBERS PRESENT: Chairperson Al Larson, Ben Smith, Everette Ellison, and Lovell Schrupp. MEMBER ABSENT: Tom St. Hilaire. STAFF PRESENT: 011ie Koropchak. Koropchak reiterated the minutes from the IDC Committee meeting and recommendation for Shingobee as selected developer for the TIP/SPEC Pre -Plans. The HRA questioned the reason For the disparity between the developer's building construction costs. Koropchak noted that perhaps the disparity are inflated costs such as permits and utilites are high in reference to Montice llo's costs and the design criteria described a pleasing visual exterior facility of a commerical glass office and precast/masonary production facility. Lowell Schrupp made a motion to approve the IDC Committee recommendation of Shingobee as the selected developer and agreed with the confirmation for proposal clarification between the developer and the city and if not in agreement to reopen the bid process. Al Larson seconded the motion which passed 4-0. The HRA meeting adjourned at 12:00 Noon. cs� Ka1ma1q.- 011ie Koropchak - HRA Executive Secretary V HRA project Congregate Housing 12/3/90 Barb Schwientek, Hospital District Executive Director From Patty McCallan of Health Research Phase I on Marketing Study A. Look at market based on raw numbers - need household income of $18,000 or above for congregate housing market rates. Of that 2% move in. B. Elderly are not as likely to move out of their social community if they are still mobile as in the case with the need for nursing home care. C. Out of a 100 inquiries for congregate housing, 17 may make a visit, and one move in. D. Talk to local senior organisations. E. Private projects difficult to compete with FmHA projects particularly in communities with good ancillary services. (Elk River congregate housing will be FmHA project and close to nursing home), verify existing FmHA project occupany rates. F. Sometime elderly move to congregate housing where communities offer no health care. Example North Dakota not the case here. G. Recommended age over 60-65 to 75. Barb said to use Mr. Kemps recommendation of 80-83. H. Project difficult to finance at this time because of banking regulations and competition with FmHA projects. Phase II on Marketing Study A. Survey of seniors. J AGENDA MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY Wednesday, March 20, 1991 - 7:15 P.M. City Hall MEMBERS: Chairperson Al Larson, Ben Smith, Lowell Schrupp, Everette Ellison, and Tom St. Hilaire. STAFF: Rick Wolfsteller, Jeff O'Neill, and 011ie Koropchak. GUEST: Pat Pelstring, Business Development Services, Inc. Representative(s) from Shingobee, Inc. 1. CALL TO ORDER. 2. CONSIDERATION TO APPROVE THE FEBRUARY 6, 1991 HRA MINUTES. 3. CONSIDERATION TO REVIEW AND ACCEPT MODIFICATIONS OF THE TIP/SPEC PRE -PLANS PROPOSAL WITH SHINGOBEE. 4. CONSIDERATION TO ADOPT A RESOLUTION APPROVING THE TAR INCEMENT FINANCE PLAN AND ESTABLISHMENT OF TAX INCREMENT FINANCE DISTRICT NO. 1-12. (SHINGOBEE). 5. CONSIDERATION TO SET A POT.ICY TO RECAPTURE THE HACA PENALTY PAYMENT FOR TIF DISTRICT NO. 1-12 WITH RECOMMENDATION TO THE CITY COUNCIL. 6. CONSIDERATION TO REQUEST CITY COUNCIL TO SET A PUBLIC HEARING DATE FOR TIF PLAN AND ESTABLISHED TIP DISTRICT NO. 1-12. (SHINGOBEE). 7. CONSIDERATION TO ACCEPT THE 1990 HRA YEAR END I:EPORT. 8. CONSIDERATION OF PROSPECT UPDATE: a) Aroplax b) 1.2 million ap ft distribution center c) Towlo Real Estate 9. CONSIDERATION TO RECEIVE THE 1990 ECONOMIC DEVELOPMENT REPORT AND 1991 ECONOMIC DEVELOPMENT WORK PLAN. 10. OTHER BUSINESS. 11. ADJOURNMENT. ,7 V li 1SHINf,OBEE IDOLPHIII 121ST CENTURY BUILDERS I 1 15K 20K 25K I 1 15K I0K I 25K 1 15 K 20K 25K -".. -- ----- __...- --I---------------------------- ETEII 1. CONSTRUCTION COSTS 1 I - I -- --'.._.' _-- 1------------------------- I I A. Building Design Plane 1 1900 1900 $900 I ICOVERED COVERED COVERED 1 I I B. Site Plans I I I I I Parking 1 $73,270 171,932 !71,055 1 123,400 12S,400 127,600 1 135.000 111,000 $50,000 Landscaping 1 15,000 $5.000 $5.500 1 $11,000 111,500 $12,000 1 10 $0 10 Drainage 1 $6,000 $6,000 $6,000 1 11,000 $4,000 $4,000 1 10 f0 30 Elevation 1 132,128 $30,119 $31,120 1 $25,000 125,000 125,000 1 10 $0 10 Other 1 1 13,700 13,700 I ------------------'---------- I ------------------------------ SUBTOTAL 1 1116,991 4113,050 1116,675 I --------_----------------- 1 $67,100 $69,600 168,600 I ---- --.---------------- 1 $35.000 $11,000 $50,000 I C. Building Construction I I I I I Permits 1 $5,000 $6,500 $6,800 1 $18,000 120,000 $21,000 1 10 $0 $0 Utilities 1 $6,000 16,200 $6,500 1 $15,000 $15,000 $15,000 1 $0 10 $0 Materials 1 1121,000 1144.568 $111,150 11112.500 $550.000 1672,500 11405, 000 $494,000 1561,000 Labe' 1 $121,000 01144,568 1171,150 1ABOVE ABOVE ABOVE I $0 t0 30 Other I I I ------------------ --------- I._... SUBTOTAL 1 -.-.._-....---.....---..I 1253,000 $301,83 6 $362,200 --------------------------- 11445,500 $585,000 1708,500 I --------------------------- 1$405.0001494,000 1561,000 I I I D. Professional Fees I I I Architect 1 17,000 1 17,250 17,500 1 $18,000 $19,000 $20,000 1 $10.000 $12,000 $14,000 Engineer 1 13,000 ' 13,000 13,000 1 $7,000 $7,500 17,000 1 10 30 10 Attorney 1 13,000 13,000 13,000 1 $5,500 35,500 15,500 1 10 30 t0 Others 1 146,000 ' 153,3:+0 160,700 1 $92,000 $65,000 10 1 118.000 $22,000 $25,000 ------------------------------ I SUBTOTAL 1 I ------------------------------ 159,000 166,600 174,200 I --------_------------------ 1$122,500 I $97,000 132,500 I -------------------------- 1 128.000 I $34,000 139,000 I E. Other (General) 1 10 f0 10 I I 10 10 $0 I 1 (0 30 30 I F. Lane I I I I I Aquisition 1 170,000 $70,000 170,000 11150,000 $150,000 SI54,000 1 10 10 t0 Site Preparation 1 (COVERED) (COVERED (COVERE01 $15,000 115,000 $15,000 1 10 $0 30 Soil Boring Teets 1 13,800 13,900 $3,800 1 $3,500 13,500 13,500 1 10 10 10 Other I I I ...... ---------------------- I.................----....----' SUBTOTAL 1 I 173,800 $73,8 00 $73,800 I .......... 11161,500 I --............... 1168,500 $161,500 I ---- -------- 1 10 I ------------- $0 t0 I TOTAL 1 I 1503,691 1556, 186 1527,775 I 11803,600 I $920,100 1911,100 I 11169.000 I 1572,000 1650,000 I ITEM II BASE 830 LEASE RATE I I I I I I A. Leen Rate per square foot) 14.11 $1.50 14.25 I 1 14.50 111.50 14.50 I 1 $5.75 $5.15 15.00 $1.00 $4.00 wDo I I 11.00 19.00 $9.00 1 i SCHEDULED CERTIFICATE OF COMPLETION AND RELEASE OF FORFEITURE WHEREAS, The Housing and Redevelopment Authority in and for the City of Monticello, Minnesota, a body politic and corporate (the "Grantor'), by a Deed recorded in the Office of the County Recorder or the Registrar of Titles in and for the County of Wright and State of Minnesota, as Deed Document Number(s) and , respectively, has conveyed to William R. and Barbera R. Tapper, Minnesota residents (collectively, the "Grantee'), the following described land in the County of Wright and State of Minnesota. to -wits Lot 4, Block Z, OAKWOOD INDUSTRIAL PARK according to the recorded plat thereof, Wright County, Minnesota TyT WHEREAS, said Deed contained certain covenants and restrictions, the breach of which by Grantee, Its successors and assigns, would result in a forfeiture and right of re-entry by Grantor, Its successors and assigns, said covenants and restrictions being set forth in Sections 1 and Z of said Deed; and WHEREAS, said Grantee has to the present date performed said covenants and conditions Insofar as it Is able In a manner deemed sufficient by the Grantor to permit the execution and recording of this certification; NOW, THEREFORE, this is to certify that all building construction and other physical Improvements specified to be done and made by the Grantee have been completed and the above covenants and conditions In said Deed have been performed by the Grantee therein end that the provisions for forfeiture of title and right to re-entry for breach of condition subsequent by the Grantor therein Is hereby released absolutely and forever Insofar as It applies to the land described herein, and the County Recorder or the Registrar of Titles In and for the County of Wright and State of Minnesota Is hereby authorized to accept for recording and to record, the filing of this Instrument, to be a conclusive determination of the satisfactory termination of the covenants and conditions of the contract referred to in said Deed, the breach of which would result in a forfeiture and right of re- entry, but the covenants created by Section 7 of said Deed shall remain In full force and effect subject to the time limits set forth in Section 3. o-1 Dated: , 18 THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO, MINNESOTA IN THE PRESENCE OF: By By STATE OF MINNESOTA ) ) as. COUNTY OF WRIGHT ) ' On this day of , 19_, before me, a Notary Public within and for said County, personally appeared , to me personally known, who, being by me duly sworn, did say that (s)he is the of the corporation named In the foregoing instrument; that the seal affixed to said instrument Is the corporate seal of said corporation; that said instrument was signed and sealed in behalf of said corporation by authority of its Board of Commisslonerm and said aclu;owledged said Instrument to be the free act and deed of said corporation. Notary Public STATE OF MINNESOTA ) aa. COUNTY OF WRIGHT ) . On this day of , 19_, before me, a Notary Public within and for said County, personally appeared , to me personally known, who, being by me duly sworn, did say that (s)he le the of the corporation named In the foregoing Instnimentt that the seal affixed to said Instrument is the corporate seal of said corporation; that said instrument was signed and sealed in behalf of said corporation by authority of Its Board of Commlaalonerst and said acknowledged said Instrument to be the free act and deed of said corporation. Notary Public D-9 J SCHEDULE D CERTIFICATE OF COMPLETION AND RELEASE OF FORFEITURE WHEREAS, The Housing and Redevelopment Authority in and for the City of Monticello, Minnesota, a body politic and corporate (the "Grantor'), by a Deed recorded In the Office of the County Recorder or the Registrar of Titles In and for the County of Wright and State of Minnesota, as Deed Document Number(s) and , respectively, has conveyed to Remmele Engineering, Inc., a Minnesota corporation (the "Grantee'), the following described land in the County of Wright and State of Minnesota, to -wits Lot 8, Block 1, Oakwood Industrial Park, according to the plat thereof of record in said Wright County; excepting therefrom that part of said Lot 8 lying northerly of the north line of the Northeast Quarter of Section 14, Township 121, Range 25; also excepting therefrom that part of said Lot 8 lying northeasterly of the southwesterly right-of-way line of Interstate Highway 94; together with that part of vacated Fallon Avenue, also known as Industrial Drive, abutting said Lot 8 and being more particularly described as followst Beginning at the intersection of the east line of Section 14, Township 121, Range 25, with the southwesterly right-of- way line of Interstate Highway 94; thence along said east line South 1 degree 14 minutes 38 seconds West, assumed basis of bearings, a distance of 547.47 feet; thence North 63 degrees 34 minutes 45 seconds West 38.48 feet to the east line of said Lot 81 thence along said east line of Lot 8 North 1 degree 14 minutes 38 seconds East 545.78 feet to said southwesterly right-of-way line of Interstate Highway 941 thence along said right-of-way line and along a nontangentlal curve, concave southwesterly and having a radius of 5545.58 feet, a central angle of 0 degrees 22 minutes 10 seconds and a chord bearing of South 88 degrees 03 minutes 45 seconds East, an are distance of 35.77 feet to the point of beginnings together with that pert of the Northwest Quarter of the Northwest Quarter of Section 13, Township 121, Range 25 (now known as Lot 10, Auditor's Subdivision No. 1), which Is more particularly described as follows: Beginning at the Intersection of the west line of said Section 13 with the southwesterly right-of-way line of Interstate Highway 941 thence along said west line South l degree 14 minutes 38 seconds West, assumed basis of bearings, a distance of 547.47 feetl thence South 83 degrees 34 minutes 45 seconds East 180.00 feetl thence North 28 degrees 25 minutes 15 seconds East 499.72 feet to said southwesterly right-of-way line of Interstate Highway 941 thence along sold right-of-way line North 83 degrees 30 minutes 58 seconds West 184.35 feet to a point of curvaturel thence continuing along said right-of-way line and along a curve. concave southwesterly and having a radius of 5548.58 feet, a central angle of 2 degrees 21 minutes 43 seconds and a chord bearing of North 84 degrees 41 V minutes 48 seconds West, an are distance of 228.82 feet to the point of beginnings Including all that part of Fallon Avenue or Industrial D-1 N Drive, which is contained within the foregoing described parcel, Wright County, Minnesota. and WHEREAS, Section 1 of said Deed contained certain covenants and restrictions which would expire upon completion of construction of certain Improvements on the land conveyed; and WHEREAS, said Grantee has to the present date performed said covenants and conditions Insofar as It is able in a manner deemed sufficient by the Grantor to permit the execution and recording of this certification; NOW, THEREFORE, this is to certify that all building construction and other physical Improvements specified to be done and made by the Grantee have been completed and the above covenants and conditions in sold Deed have been performed by the Grantee therein and that any provisions for forfeiture of title and right to re-entry for breach of condition subsequent by the Grantor therein are hereby released absolutely and forever Insofar as they apply to the land described herein, and the County Recorder or the Registrar of Titles in and for the County of Wright and State of Minnesota is hereby authorized to accept for recording and to record, the filing of this Instrument, to be a conclusive determination of the satisfactory termination of the covenants and conditions of the contract referred to In sold Deed, the breach of which would result in a forfeiture and right of re- entry, but the covenants created by Section 2 of said Deed shall remain In full force and effect. D-2 r 41 Dateds , 19_ THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO By Its By Its STATE OF MINNESOTA ) COUNTY OF ) The foregoing Instrument was acknowledged before me this day of 1990 by and ' , the and , respectively, of the Housing and Redevelopment Authority in and for the City of Monticello, a public body corporate and politic, on behalf of the Authority. D-3 Notary Public MINUTES MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY ' Wednesday, January 2, 1991 - 7:00 PM City Hall MEMBERS PRESENT: Chairperson Al Larson, Ben Smith, Lowell Schrupp, Everette Ellison, and Tom St. Hilaire. STAFF PRESENT: Jeff O'Neill and 011ie Koropchak. 1. CALL TO ORDER. Chairperson Larson called the HRA meeting to order at 7:00 PM. 2. APPROVAL OF THE NOVEMBER 7 AND NOVEMBER 14, 1990 HRA MINUTES. Lovell Schrupp made a motion to approve the November 7. 1990 HRA minutes, seconded by Ben Smith, without further discussion the minutes were approved as vritten. Ben Smith made a motion to approve the November 14, 1990 HSA minutes, seconded by Tom St. Hilaire, and without further discussion the minutes were approved as written. 3. CONSIDERATION TO ACCEPT 1991 HRA MEMBERSHIP FOR CITY COUNCIL APPOINTMENT. With HRA member Ben Smith's villingness to remain on the HRA for an additional term, Tom St. Hilaire made a motion recommending, the name of Ben Smith for NRA membership. to the Mayor for appointment and City Council approval. The motion was seconded by Ben Smith and without further discussion passed unanimously. HRA Members and Terms: Tom St. Hilaire December 1991 Everette Ellison December 1992 Al Larson December 1993 Lovell Schrupp December 1994 Don Smith December 1995 4. CONSIDERATION OF FOLLOW-UP ON THE ELDERLY CONGREGATE HOUSING CONCEPT. Koropchak informed the HRA nonbers of the recommendations received from Patty McCallan of Health Research. via Barb Schvientok. regarding some criteria for Phase 1 of a market study and assessment guidelines of the study. (See anclosur a.) Koropchak further reported that the scheduled tour of the H olgason Development Housing Complex /j in Sartoll was cancelled because of HRA members conflicts. The tour was scheduled for Wadn osday, December 5. 1990 at 10:00 AM. HRA Minutes 1/2/91 Page 2 4. CONTINUED. The HRA concluded that the present time was not right for congregate housing in Monticello due to the excellent ancillary services provided in Monticello along with the availability of elderly housing both subsidized and fair market. Additionally, the project isn't financially feasible without assistance and at present the HRA is aware of an interested long term investor. The HRA suggested that the tour of the Sartell housing complex be rescheduled in the spring. 5. CONSIDERATION OF FOLLOW-UP ON THE GILLE PROPERTY PROPOSAL. &oropchak reiterated the November 30, 1990 telephone conversation with Brad Larson. Mr. Larson said the West Prairie Partnership was not interested in the project unless the City, Gills, or the HRA provided the partnership with a closure report certifying tank removal and no soil contamination. Mr. Larson further indicated that he felt Mr. Lille was in no financial position to remove the tanks. Inother words the partnership is not interested in the property unless clear of all tank removal and possible soil contanmination expenses. The HRA acknowledged the site improvement on the property, yet, about six care and car parts and junk remain on the property. With the knowledge that the City could become owners of the Gills property due to the seven year delinquency on property taxes, the HRA requested a current status report on the taxes and information on the Super Fund. CONSIDERATION OF ACTIVE PROSPECTS: a) 1.2 million eq ft distribution center - This undisclosed company plans to employ SOD+ personnel and will create an excess of 500 round trip daily truck traffic, plus employee and company owned truck fleet traffic. The company officials have selected three Minnesota communities for potential site selection. Monticello is among the three along with Anoka and Owattons. The HRA reminded staff that from their perspective they support quality rather than quantity, however, encouraged the staff to be aggressive in the recruitment. Additionally, they encouraged staff to ask questions when the opportunity arises and encouraged the Mayor and/or City staff to visit another company eimiliar site. b) Aroplax - This 40 year old family owned company is strongly looking at Monticello to relocate their plastic injection molding company. Currently, preliminary building plane are being completed and on January 3rd the owners will visit our industrial site options and visit with staff. The HRA analyzed the project against the TIP policy considerations and determined the company project mot considerations 1, 2, 3. 7. and 8. Based on previous information of the company the HRA gave preliminary concept approval for the use of TIF to Aroplax. HRA Minutes 1/2/91 Peg e 3 6. CONTINUED. c) Woodcraft Industries, Inc. - the company's president contacted my office regarding their desire to expand their manufacturing facility. The company plans to construct a 100,000 square foot facility and employ 150 people at $6.50 per hour. The company is in the production of hardwood dimension cabinet componets. Plans are for the company officicals to view industrial sites available and to meet With staff and Mr. Pat Pelstring on January 8th. The company is interested in a financial package and are also looking at Becker, Wilmer, and Sauk Rapids. The BRA supported the project recruitment. d) Eric Bondhus - although the company's largest customer is located in the metro area, Eric remains interested in Monticello. TIF numbers have been run for the project under the assumption to purchase a city lot. Mr. Bondhus will contact Rick Wolfateller for 1) purchase options on the Old Fire Hall and 2) negotiable land coats on the industrial sites. a) Circuit Technologies, Inc. - Based upon Pat Pelstring's recommendation Ken Maus, Shelley Johnson and Koropchak met VD to review the company's business plan and resumes. The meeting intent was to secure additional community input for this start-up company. Based upon the submitted information the group recommended a commitment letter from the proposed sales person (key person to the success of the company), at least five lettere from companies 1•terested in their market niche. and a two year lease commitment. The group encouraged to proceed with the recruitment process and if the project becomes unviable, atop the process. Upon the group's recommendation the company representatives, Pat Pelstring, and Koropchak visited lending officers at Wright County State Bank and First National of Monticello for preliminary concept review of the project and willingness to participate in the project. These meetings held Decombor 28, and at this point have not hoard from the lending institutions. 7. COPY OF THE REQUEST FOR PROPOSAL TIF/SPEC BUILDING PRE -PLANS FOR INFORMATIONAL PURPOSES. No action necessary on this agenda item, copy of the proposal is for informational purposes only. The proposal was approved by the IDC in December and was mailed to approximately ton HRA Minutes 1/2/91 Page 4 �r1 7. CONTINUED. contractors on December 19th with IDC selection scheduled for January 18th. 9. ADJOURNMENT. Tom St. Hilaire made a motion to adjourn, seconded by Everette Ellison, the HRA meeting adjourned at 8:25 PM. C.s \Acn 011ie Koropchak HRA Executive Secretary MINUTES MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY Wednesday, February 6, 1991 - 7:00 P.M. City Hall MEMBERS PRESENT: Chairperson Al Larson, Ben Smith, Everette Ellison, and Tom St. Hilaire. MEMBERS ABSENT: Lowell Schrupp. STAFF PRESENT: Jeff O'Neill and 011ie Koropchak. 1. CALL TO ORDER. Chairperson Al Larson called the HRA meeting to order at 7:00 PM. 2. CONSIDERATION TO APPROVE THE JANUARY 2 AND JANUARY 23, 1991 HRA MINUTES. Ben Smith made a motion to approve the January 2 and January 23, 1991 HRA Minutes, seconded by Tom St. Hilaire, the minutes were approved as written. 3. CONSIDERATION OF REQUESTED INFORMATION FOR THE GILLS PROPERTY. Koropchak reported to the HRA members on the Super Fund guidelines stating if PCA guidlines are followed for Tank Removal and Testing than funds are available for contaminated cleanup up to a maximum of one million dollar. Tank removal and samplings are the party's (owner) responsibility thereafter up to 902 of costa for soil remediation, eligible cleanup, investigation, and corrections may be covered by the Super Fund. Koropchak further reported on the three Gills parcel dolingent taxes through 1990. This total amount is ilb,a».0/. Al Larson again expressed 1s initial shock of the delinquent taxes and asked, what's the 2 of dolinqent taxes compared to the total city budget? O'Neill responded that 902 of the total annual city taxes ware collected with the two largest delinquencies on the Farm Credit Property (Jim Boyle) and the Marvin George Property. Tom St. Hilaire mado a motion recommending upon hiring a new city attorney, one of his first priorities be to work with the County Auditor for collection of delinquent city taxes. Al Larson seconded the motion and without further discussion passed 4-0. 4. CONSIDERATION TO APPROVE THE CERTIFICATE OP COMPLETION FOR TIF DISTRICT NO. 1-9 (TAPPER'S INC.). Koropchak reported the building construction and site improvements were completed in conformance with the development contract, however, the $15.300 duo the developer upon certification of N HRA Minutes 2/6/91 Page 2 4. CONTINUED. completed site improvements and payment have not been received therefore the $15,500 has not been released. Work is completed, however, general contractor has not paid off subcontractor. Tom St. Hilaire made a motion to approve the Certificate of Completion for TIF District No. 1-9 (Tapper's Inc.) with acknowledgement of the above information. Everette Ellison seconded the motion and without further discussion the motion passed 4-0. 5. COSIDERATION TO APPROVE THE CERTIFICATE OF COMPLETION FOR TIF DISTRICT NO. 1-10 (REMMELE ENGINEERING, INC.). Koropchak reported the building construction and site improvements were completed except for the stairs to the roof and one additional surface layer to the parking lot (will do in spring). Additionally, the company has authorised payment of assessments on the Farm Credit property acquired in the amount of approximately $1,500, payable to the City of Monticello. Ben Smith made a motion to approve the Certificate of Completion for TIF District No. 1-10 (Remmele Engineering, Inc.) with acknowledgement of the above information. The motion was seconded by Tom St. Hilaire and without further discussion passed 4-0. CONSIDERATION OF PROSEPECT,S: a) Aroplax - On January 21th, Deb Grahame, Bob Heck, and Koropchak met with Jerry, Paul, and Steve Schoen to discuss required information for the SBA loan. Uses include land, building, and equipment. Sources are Bank, SBA, TIF and CHEF. With Jerry Schoen, the father and majority owner of the business, scheduled be to out of town, plans are for SBA application submittal to the OMNI Board the first week of April. Koropchak and Graham toured their present facilities. b) 1.2 million square foot distribution center - Koropchak informed the HRA that Monticello still remains in the list of three Minnesota communities (Faribault and Owattona) as possible site location for the distribution cantor. Plane are for the company representatives to return to Minnesota around the 25th of February. They will visit the sites, tour the city, and moot with a selected list of city officicals. Soil maps were sent to the company on the four Monticello sites. c) Eric Bondhus - Lake Tool has purchased an Industrial building in the emtro area on a contract for dead. The company was interested In being close to their largest client. HRA Minutes 2/6/91 Page 3 I 6. CONTINUED. d) Circuit Technologies, Inc. - Having met with local lending institutions and receiving no local endorsement of the project, along with no revised projections as suggested by Mr. Pelstring (reduction is sales and slow growth of employment which are more realistic for a start up company), and the difficulty to obtain letters of interest from potential clients have caused the City to withdraw the use of the CMEF. However, the company is encouraged to have their business locate in Monticello. e) Woodcraft Industries, Inc. - this company out of St. Cloud was looking for a site to construct a 100,000 aq ft building with 150 employment of semi -skilled level. The company representatives visited Monticello, industrial sites, and met with city representatives. Mr. Pelstring present at the meeting was to obtain financial information for funding application and Koropchak was to research the availability of the Hoglund property (15 acres) and research the coat and design for public improvements. However, the company received an offer from the St. Cloud HRA to purchase the company's existing 15 acres (commerical property) and sell it back to the company for $1.00. At this point, they plan to remain in St. Cloud. f) TIF/SPEC Prosposal - Mr. Pelstring, Cas Veit, and Koropchak are scheduled to meet on Friday to confirm the received proposal numbers and data and to plan a time schedule for the TIF Plan and building construction review. 7. CONSIDERATION TO ACCEPT HRA YEAR END REPORT. No report was received and Mr. Wolfsteller will present a financial report within the next months. 8. OTHER BUSINESS. None. 9. ADJOURNMENT. Al Larson made a motion to adjourn the HRA meeting, seconded by Everette Ellison, the NRA meeting adjourned at 7:55 PM. ,Q� Vd, u A,J C._ y n 011ie Koropchak \fl HRA Executive Secretary ALL PARCELS ZONED R-2 (SINGLE AND 2 FAMILY RESIDENTS) OWNER PID0 '90 TARES 155-500-033400 $1,458.44 UNPLATTED LAND TR DES 88 232-80 fdLLB 155-500-033401 i 518.90 PURCHASED FROM CARLSON 6/89 FOR $70,000 CSV GILLS 155-500-033402 i 144.86 UNPLATTED LAND TR DES B[ 239-437 DELINO. TARES ACREAGE/EMV BLDG SQ FT/EMV SPEC ASSESS $12,288.68 '77-89 1.52/$15,000 COMM 1,920/$40,200 NONE $14,310.83 177-81 85-90 $ 305.23 '89 1.03/$ 6,000 COMM 2,548/$15,300 NONE $ '897.65 '89-90 $ 6,000 RES NHS 880/$39,600 e" $ 1.044.90 '77-89 0.25/$ 3,500 NONE NONE $ 1,244.59 '77-80 '85-90 -[ATtK"ts- 155-500-033403 $ 338.02 NONE TOTALS $2,460.22 $13,638.81 $16.453.07 A 2.08/412,000 Q RES 1,452/ GARG 840/ OTHER 495/ TOTAL 2,787/$31,200 NONE 4.88/$42,500 COMM 4,468/$55,500 NONE RES 3,667/$70,800 TOTAL EMV $54,000 $63,400 $ 3.500 R \7L0. two $41,300 $162,200 /b/ 391en a 3. CONSIDERATION TO REVIEW AND ACCEPT MODIFICATIONS OF THE TIF/SPEC PRE -PLANS PROPOSAL WITH SHINGOBEE. A. REFERENCE AND BACKGROUND. Upon the selection of Shingobee, Inc. as the developer for the TIF/SPEC Pre -Plan Proposal both the IDC Subcommittee and HRA requested that confirmation of the proposal intent be reviewed with the developer. On February 8th, Gas Veit, Pat Pelstring, and Koropchak met to review the proposal and to establish the next plan of action. These items were requested for modification by Shingobee: a) The selected developer shall submit a development commitment fee of $5,000. Modification: The selected developer shall submit a development commitment fee in the amount of actual coats to prepare the TIP District Plan and the Development Contract. b) The life duration of the request for proposal shall terminate upon execution of the development contract or upon the end of construction season 1991, whichever is first. Modification: The life duration of the INS> request for proposal shall terminate upon execution of the development contract during construction season 1991. If the development contract is not executed during the construction season 1991, the request for proposal shall receive automatic renewal, subject to HRA request for withdrawal. c) Requested the selected developer to give minimum and maximum timetable for request for proposal construction completion. d) Comparison of request for proposal costs explained why the difference between the selected developer's costa and other submitted proposal costa. Shingobee's cost estimatou for permits, utilities, and land were within the Monticello range, however, building and labor costs did not include office space finish costs or mechanical and eloctrical/air condition costs. Goo Veit explained her proposal included a lease tenant finish which gives tho tenant the option to finish the project to the tenant's specifications and at a possible lower cost. o) Lease rate of $4.75, $4.50, and $4.25 per square foot were without the use of TIF. Mr. Pat Polstring advised Ms. Veit that the lease tenant V finish costs must be figured into the TIP budget no the use of TIP to not a benefit to the developer and must he reflected in the TIP Plan as a lease cost reduction. 3R& Agenda 3. CONTINUED. The following TIF schedule was set: HRA Meeting/Review of Plan March 6, 1991 Distribution of Plan to County/School March 7, 1991 City Council -Call Public Hearing March 11, 1991 Planning Commisalon-Comp Plan Review April 2, 1991 City Council Public Hearing (No approval)April 8, 1991 Results of the meeting were for Hr. Pelstring to receive actual construction coats from Shingobee for TIF Plan. Shingobee is to obtain a land option commitment to coincide with the request for proposal life duration, to supply Mr. Pelstring with actual construction coats, and to have building and site plane to the Building Inspector for review prior to the HRA meeting. Koropchak is to bring suggested modifications back to the IDC and HRA for approval prior to drafting a letter of intent between the IDC and Shingobee. The Development Agreement must be prepared and agreed upon by April 8th, however, will not be executed until a lesson Is obtained for w the project. On February 21th, the IDC reviewed the above and made one addition to modification b): The life duration of the request for proposal shall termiato upon execution of the development contract during construction season 1991. If the development contract is not executed during the construction season 1991, the request for proposal shall receive automatic renewal with a not to exceed the state building coat index inflation rate, subject to NRA request for withdrawal. The IDC passed a motion accepting the modifications, addition to modification b) , suggestions made by Mr. Polstring, scheduled time frame, and upon HRA approval the IDC Subcommittee will review the Latter of Intent prior to Shingoboo submittal. Three important aspects to encourago the successfulness of the project are: 1. Joint marketing partnership between Shingobeo and the City (1DC). 2. Expected time to complete construction for a proposed lease building. 3. Laoso rate coat par square foot. Recommendation to for the HRA to review the modifications and suggestions to the request for proposal and 5 HRA Agenda 3/091 3. CONTINUED. make a motion to approve or not to approve the modifications and suggestions as referenced to in the IDC motion. This to be completed before any action of Agenda Item No. 4. B. ALTERNATIVE ACTION. 1. Approve the Request for Proposal Modifications and Suggestions as referenced by the IDC motion. 2. Make other modifications and approve Request for Proposal accordingly. 3. Deny approval of the Request for Proposal and request to resubmit bide. C. RECOMMENDATION. No recommendation is given at this time because of the unknown of actual project cost numbers. Upon Mr. Pelstring's positive analysis of the TIP budget, recommendation would be to proceed with the project as modified. D. SUPPORTING DATA. Copy of the Joint Venture Agreement inclusive of modifications. `, 4 JOINT VENTURE AGREEMENT minCE1.L0 March 21, 1991 250 East Broadway P. O. Box 1147 Monticello, MN 55362.9245 Phone: (612) 295-2711 Metro: (612) 333.5739 Fax: (612) 295-4404 Ms. Gas B. Veit, President Shingobee Builders, Inc. 279 North Medina Street, PO Box 6 Loretto, MN 55357 In response to the request for proposals to prepare TIP/SPEC building pre -plans for the City of Monticello, Shingobea Builders, Inc., was awarded proposed developer by the Industrial Development Subcommittee and the Housing and Redevelopment Authority (HRA) based on the criteria set forth within the request for proposals and the received Shingobee Builders, Inc., proposal. In conformance with the Industrial Development Committee's (IDC) request for proposals dated December 19, 19901 with the received Shingobee Builders, Inc., proposal dated January 17, 1991; and with the modifications to the request for proposals as amended by the IDC on February 21, 1991, and by the HRA on March 20, 1991, this Joint Venture Agreement is prepared for execution between the Industrial Development Committee in and for the City of Monticello and Shingobee Builders, Inc., the "Rol acted developer." 1. The selected developer and the City's Economic Development Director shall jointly market the TIF/SPEC building plans. 2. The selected developer shall submit a development commitment fee in the amount of actual costs to prepare the TIF district plan and the development contract (returned upon construction). 3. The selected developer shall be assisted with the TIF pay-as-you-go plan. The TIP shall be tied to the land acquisition, and site development incentive shall be in the form of a "lease" write-down for the benefiting industry. TIP shall not be used to increase the selected developer's return. 4. Tho selected developer shall commit to not—to-exceed construction costs and lease rates. 5. Market lease rates shall be of $4.75, $4.50, and $4.25 per squaro foot for buildings of 25,000, 20,000, and 15,000 square feet, rospectivoly. 7 i Joint Venture Agreement �+ March 21, 1991 Page 2 6. The selected developer shall draft site plans, including parking, landscaping, drainage, and elevation, to conform with the City ordinance and zoning. 7. All plans shall be reviewed by the City staff and City engineers and approved by the City Building Inspector prior to TIF plan approval. 8. The selected developer shall obtain a land purchase option or commitment letter from the landowner of the designated industrial site location. Said option of commitment shall coincide with the life duration of the proposal. The developer shall select a site zoned I-1 (light industrial) or I-2 (heavy industrial) within the city of Monticello. 9. The life duration of the request for proposals shall terminate upon execution of the development contract during construction season 1991. If the development contract is not executed during the construction season 1991, the request for proposals shall receive automatic renewal with a not -to -exceed the state building cost index inflation rate, subject to HRA request for withdrawal. 10. The selected developer shall provide a minimum and maximum time table for request for proposals construction completion. 11. The selected developer and the HRA shall "pre -negotiate" a development contract inclusive of an assessment agreement and an addendum. The said addendum shall be executed by the leasee acknowledging the City's assistance and verifying the project representations. The developer shall submit financial statements and data. 12. The selected developer shall be assistod with TIF pay-as-you-go plan; therefore, this eliminates the need for spocific letters nt credit or developer guarantees. Now, therefore, shall the Industrial Development Committee in and for the City of Monticello and Shingobee Builders, Inc., the "selected developer," enter into this Joint Venture Agreement. INDUSTRIAL DEVELOPMENT COMMITTEE SHINGOBEE BUILDERS, INC. Its Chairperson Its President Dated Dated I.1 HRA.Agenda 3/&/91 4. CONSIDERATION TO ADOPT A RESOLUTION APPROVING THE TAR INCREMENT FINANCE PLAN AND ESTABLISHMENT OF TAX INCREMENT DISTRICT NO. 1-12 (SHINGOBEE). A. REFERENCE AND BACKGROUND. Mr. Pat Pelst ring of Business Development Services, Inc. will be at the NRA meeting to present the TIF Plan for Establishment of TIF District No. 1-12. Additionally, a representative from Shingobee, Inc. should be in attendance to review the building and site plans with the HRA. Building Inspector comments, if any, should be heard. Based upon the information received at the HRA meeting, the HRA should consider action to adopt the resolution or to deny adoption of the resolution. B. ALTERNATIVE ACTION. 1. Adopt the resolution approving the Tax Increment Finance Plan and for Establishment of Tax Increment District No. 1-12 (Shingobee, Inc). _ 2. Deny adoption of the resolution. 3. Table adoption of the resolution. C. RECOMMENDATION. With the assumption of completion of the TIP Plan, approval of the building and site plane by the Building Inspector, recommendation would bo to adopt the resolution inorder to proceed with the IDC's objective. D. SUPPORTING DATA. Copy of ur pa trial copy of the TIP Plnn rn he distributed at tho HEA meeting. N HRA Agenda 3/x/91 v 5. CONSIDERATION TO SET A POLICY TO RECAPTURE THE HACA PENALTY PAYMENT FOR TIF DISTRICT NO. 1-12 WITH RECOMMMENDATION TO THE CITY COUNCIL. A. REFERENCE AND BACKGROUND. The City of Monticello has been certified to receive $246,646.00 in Homestead and Agricultural Credit Aids (HACA) in 1991. The 1990 Legislation amended the Minnesota Statutory, 271.1399 Reduction in State Tax Increment Financing Aid Payments. It is my understanding, the meaning of this is that cities who receive Local Government Aid (LGA) or HACA will have a reduction in LGA or HACA payments to offset a portion of the increased school aid payments resulting from the use of TIF, in other words, the city is penalized for the use of TIF Districts certified after April 30, 1990. This is effective for school year 1991-92 and for LGA and HACA for taxes payable in 1992. How is the aid reduction calculated: 1. County Auditor certifies tax capacity to Dept of Revenue. 2. Education certifies reduction amounts to Dept of Revenue. `r 3. Dept of Revenue reduces LCA and HACA paid to cities. Because LGA or HACA is subtracted from the final overall levy limit base the reduction in a city's LCA or HACA will automatically increase the city's overall levy limit. 7 EXAMPLE with use of TIF. ASSUMPTIONS: EMV of building and land, $600.000. Annual City HACA, 1240,000. Economic TIP District, 10 year duration, 8 year collectible. Penalty for life of district. Annual Estimated Total Increment, 122,900. Annual TIP Penalty, 16,900 (annual HACA reduction) Annual "Not" Increment, 116.000. The Question becomes, how to recapture the HACA reduction or penalty which is taken from the City General Fund. Suggested Alternatives: 1. Developer pay penalty. 2. Offer TIP assistance in the amount of the total "Not" Increment. 3. Use any other economic development reserve fund monies, if available, and if legal. 16 HR,k Agenda 3/6/91 5. CONTINUED. 4. Increase the city's overall levy limit the following year. Because in year 1991 Monticello was certified to receive a BACA payment of $246,646, the City's tax rate was reduced to 15.511 from an expected rate of 17 point something. Because of this reduced overall tax levy this year, one may consider an increase in the 1992 overall tax levy not a major concern. (more or less a wash). However, in the following years that may not be the case. Another thing to remember Is, althrough, Monticello was certified to receive the HACA amount mentioned, Governor Carlson's proposed budget suggests local aids may be cut. Further discussion and questions will be addressed at the HRA meeting with Mr. Pelstring and Mr. Wolfsteller. The objective is to recommend a policy to recapture the HACA reduction for TIF District N0. 1-12 to City Council. Each new certified TIP District will establish a policy for the HACA reduction which may be determined by the eagerness of the project. B. SUPPORTING DATA. Copy of the computation of Monticello Tax Capacity Rate for 1991. Copy of a TIP penalty calculation. I TOTALS This is a copy of the computation of your tax capacity rate for taxes payable in 1991 If you notice any errors in your ,�vv, please contact Lois in the Auditor's Office fmmedlatelyl (612)682-7583 " ..-. C^ry sent 2-7-91 Wright Cor my Auditor / Treasurer wrot Co7owl?"M • eurldo. Mm,wnu SS313 Mww: (612) 682.3900 1: w .. Mm: 3396881 City of Monticello 1990 Tax Capacity Values for 19 9LTaxes: Real Estate 16,331,581 Personal Property 135,185 Subtotal 16,466,766 Less Tax Increment Financing Districts -305,723 TOTAL used in Tax Capacity Rate determination 16,161,043 rwl� Levy Percent RACA (-) Diat. Equal. Adjusted Net Tax Initial Distribution Distrib. Levy (-) Aid (-) Levy Capacity Tax Rate Revenue 1444,290 52.4670 129,407.80 1314,882.20 16,161,043 8.137 Rev. C.O. 151,754 5.5127 13,596.85 138,157.15 .855 OR Annex 70.225 1.0979 2,707.92 27,517.08 .171 11. R. A. 19,250 .6992 1,724,54 17,525.46 .109 Tree 39.135 1.4216 3.506.31 35,628.69 .221 TrnnsportatIon 19,787 .7188 1,772.89 18,014.11 .112 1,ibrnry 26,400 .9590 2.365.33 24,034.67 .149 Bonds 1021,937 37.1238 91,564.36 930,372.64 5.757 v TOTALS 2752,778 100.0000 246,646.00 2506,132.00 15.511 TOTALS This is a copy of the computation of your tax capacity rate for taxes payable in 1991 If you notice any errors in your ,�vv, please contact Lois in the Auditor's Office fmmedlatelyl (612)682-7583 " ..-. C^ry sent 2-7-91 1 o W lU11C11.417 I1UtCIU 1I11/1T1 O SOCLL COrtlluSll WS RUITI 711 f{I 4,ID CITE: OTICULDIlltt •H1• 11,10: 1.101 I1Cl11111 1I.KmIltl: U} ICD1 a, 84111 {111141f{{; 1U W 11 N.Itt 11.4] _ 1,41 � (^C}7�1Y.11 1, 11.111{,CU.SS:s�-�11. 71 11,47 U,111: 1,11,1.11 II,Ipp1U1. SI UM Io UI NYU -11 11 6411 QLL 4 Rl7aO 11 11 1NMI Nlllll W/CI IT RICOo1w WICIIT U110 IU W4171 611 UI[ R41IT m; 11:1'wl 44:m 11:R o i:p1 ..........._.._ I1 k11 �..:::...._...=s: I:: 1;11::1 int i1;1sf0i:ttoo tc* 1E;E :0 ::a: 11:w1:1 1,, Fat E;CEfli:i 1111 11 ow G ,1p ,pp 11,10y!1 �p7p 1:11 11,111:11 1::w 1,111::: 177 I'M: Kr SI,ESI:pElp ::q1 11:111:1111pp m I.b 611cc }q} IttIto .EC1 1.00 I.q: I.CO :.11.11 0.111 1�:o1Cfa1 Ho' 1:91 1:9 1:� M31 Mal ME 1�: 1:4 :9 IC*; 1:91 1:9 1:� ::51 ::2 1:9 1:2 711 f{I 4,ID 711 •H1• WICIII litIlOfy11 I1Cl11111 _1111, _ 14M!(1611 17_ _ 84111 1161M8wI 11 RI::IIIU _ 1,41 � (^C}7�1Y.11 1, 11.111{,CU.SS:s�-�11. 71 11,47 U,111: 1,11,1.11 II,Ipp1U1. SI II.i71 Il:lii C,IH:1 I,Ifi:l: 11,NI:{iS1 11:111 111443 11,41 11,14.1 11,1N1.1 1,111.11 1,111.: II,IU.{I{{1� :1,441.11 11111 1 O.C3 1.14 If:l I: 11:1:1 1:1 O. C7 1.4 YI r:1i ra s:� 8:4 at i:� 1:2 1:2 f1. 11:11 1:co HRA Agenda 3/20/91 6. CONSIDERATION TO RE4UEST CITY COUNCIL TO SET A PUBLIC HEARING DATE FOR SIP PLAN AND ESTABLISHMENT OF TIF DISTRICT NO. 1-12. (ShinRobee). A. REFERENCE AND BACKGROUND. With the approval or acceptance of Agenda Items 3, 4, and 5, the HRA should request the City Council at their March 25th meeting to call for a public hearing on Monday, April 22, 1991 for the TIF Plan and establish- ment of TIF District No. 1-12. The City Council will only hold the public hearing on the 22nd of April and will not approve the TIF Plan and establishment of the TIF District until at such time a leasee is obtained and the development contract is executed. With the designated public hearing date this allows time to meet statutory requirements for school district and county 30 day review for comments, and allows the Planning Commission to review the Plan for consistency with the City's Comprehensive Plan. You may note these dates have changed since first outlined in early February because Shingobee is unable to submit construction numbers to Mr. Pelstring for analysis of project and time to prepare the TIF Plan. Originally the public hearing was scheduled for April 8th. B. ALTERNATIVE ACTION. 1. Request City Council on March 25th to call a public hearing date of April 22, 1991 for TIF Plan and Establishment of TIF District NO. 1-12. 2. Deny the request for City Council to call a public hearing. 3. Table the request. C. RECOMMENDATION. If ull items In previnus agenda items are approved or accepted, recommendation would be to proceed with project plan. D. SUPPORTING DATA. None. I k/ 1990 MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY YEAR END REPORT January 3, 1990 • Public Hearing for Disposition of Land TIF Plan (Martie'e Farm Service). • Adopted resolution for TIF Plan and Established TIF District for Martie's Farm Service. • Authorized BDS, Inc. to draft TIF Plan and district estab- lishment for Tapper's Inc. * Considered TIF Proposal for Bridgewater Telephone Co. (Denied). * Approved 1990 HRA membership, officers, and goals. * Heard Update of Remmele and Lincoln Companies Projects. * Ben Smith and Koropchak to attend seminar on Use of TIF. February 2, 1990 • Public Hearing for Disposition of Land TIF Plan (Tapper's Inc.). * Adopted resolution for TIF Plan and Established TIF District for Tapper's Inc. • Considered additional information for TIF Plan (Martie's Farm Service). * Adopted Certificate of Completion for TIF Development Agreement (NSP). • Set Public Hearing date for adoption of TIP Plan and District Establishment (Remmele Engineering, Inc.). • Update of David Ficek and K -Mart projects. March 7, 1990 • Public Hearing for Disposition of Lands TIF Plan (Remmele Eng.) * Adopted resolution for TIF Plan and Established TIF District for Remmele Engineering. • Approved Certificate of Completion for Broadway Square Limited Partnership. • Held discussion to establish a date for a joint meeting between the HRA and City Council regarding TIF policies. • Reviewed Year End TIF District Report. April 6, 1990 • Adopted resolution modifying TIF Plan and TIP District for Remmolo Enginering from a Redevelopment District to an Economic District. May 6, 1990 • Established Date for All City Government Unite Meeting. • Update of TIP projects. Juno, 1990 ' • All Government Unite Mooting. July 1, 1990 • Adopted resolution to modify the TIP Plan (budget) for TIP District (Topper's Inc.). I S HRA Year End Report Page 2 * Reviewed Legislation Ruling on TIF and It's Impact to the City of Monticello. * Update of TIF projects. * Reviewed contract betveen HRA and BDS, Inc. August 1, 1990 * Renewed contract between the HRA and BDS, Inc. * Heard preliminary concept for use of TIP (Eric Bondhus). * Heard researched information of Gille Property and qualification to establiah a TIF District. September 5, 1990 * Heard guidelines for removal of underground storage tanks and tax delinquencies of the Gills Property. * Update of TIF projects. October 3, 1990 * Cancelled November 7, 1990 * Heard Congregate Housing Concepts from Bill Kemp, Helgeson Development Company, Inc. * Approved Preliminary concept for use of TIF for IDC project: TIF/SPEC Building Pre -Plane. November 16, 1990 * Adopted resolution authorizing execution of two Tax Increment Pledge Agreements (Tappers and Rommele). December 5, 1990 * Planned visit to Heleges on Development Company's Sartell Housing Complex. February, 1991 V V, HRAAGENDA 4-3-91 7a. CONSIDERATION TO ACCEPT THE HRA FINANCIAL REPORT. A. REFERENCE AND BACKGROUND. Enclosed with the HRA agenda additions is a copy of the HRA financial report as prepared by Rick Wolfsteller, City Finance Director. An explanation of the report will be given at the HRA meeting. Please consider acceptance of the report for HRA records. C-Sv, W .l,r1N0 .[VENUE q.n rurlo .IIYY,gY ,m,nD OS, 12 0151.1 «E1C.Ll' my 13 OTST 1111 Om' .5 MST" MST 11 MI .1 MS,K 0,5).,0 M, .11 G[N[q.L In LE429N. LSl LW Cp19i 5 q.1710.rICt. tl.wco NSC 71W,, ELMMC C31A C3! 19LL Its 7.5.31 (.}ne SS) 9"014,13 IMM ,S) (91.91511) M2.W7101 5,..33)n W2M,$01 1000 to Too 0 "11)•35 helm." w00 wm wm wW "00 Slow Wm Dowlow wW 519115,0 P01.l,0 VJS}.7 Sn.n, 01 .5.1" e9 PSu,V {62.W927 W.,N 10 low So. tom I:.: M,N Wm Wm tom wm woo wm wm wm So. /,39.11,] {,)!e.,1 w,m So.Wm wm So 00 wm Dow 11 Too wm A, t,To 19.8 148 i➢.99 148 EU19 19.8 10.90 IL)IJ) m a t./ w} m 19.8 6z"MA p."2/1 {25,1001 N1.139Y NS!)U7 Y2.0.921 tW.9nn w}d2010 Im.U.e N.I9n01 131,)0}t Iwo be" 15.111,.) iSSI TS 1311:7 ..nn H 4W T1. "u, 31 SIT -SIT -e9 1711} m u .3137 W u,.v..e wn m .))f m {!! 02 wWm.I.emm 1).60pW w..mm all. om t1000m Ymm 9„L•1 ao 91)61,05 S3=w .t 1mm tn.3mm /W..mm ",3Wm wl/nm w.000m 112.160 16 t,00moo 5111 ,5D ,e 1510m {},,3.11 t13.MOD {1,"000 from WIGS Ot NOO Yl 011 ,0 10-® 148 19.49 19.8 S^_.8 148 148 10.8 11,4mm o,,1nR-jn 148 /419 1M.M 9 w),Om 1313.3) In,Smm {2]Yf >0 .13M W M.Iww w1.9nm .S.LOCoo .M"7Y 911.110 /1331.2 "Ito'b92 1.1..1,1.91 So". 92.31901 .,,.&32 es (".3190) .n 1,1 2, So.Y iDI 9.7t,m 132 m00o $19, To, MOMW {10-00 {11.eu00 Slwomm 1:1 omm 919mm .9"00 tl?MW ."D.Om SUMMARY TIF - DEER SERVICE FUNDS 12/31190 1969A 19900 HRA 1990A 1981 1985 1987A 19878 M -L REMMELEJ TOTALS KMART Eal RAINDANCE CONST, 6 NAWCO ELDERLY HSG TAVPER AL BOND 7TH ST Cash Swptus(cmicit) 111190 $31.010.00 $41,128.00 1157,094.00 928.912.00 $13.499.00 110.01) $204.673.00 $O.OD REVENUE: Transfer M from MRA $22,300,00 933,350.00 $50.300.00 1128,925.01) $1,850.00 $0.00 $131,725.00 $0.00 (tax fnvements) Interest Income $1,079.98 $1,565.51 $1.769.33 $873.18 $4.435.70 $813.39 $8.387.09 $1,953.16 Bond Procoods - 5Q,44 �� 5j�p4 f0.00 jgp4 $48!39.78 $48.439.78 $81.985.85 Capita4:ed Intalaet TOTAL REVENUE 923.379.98 $31,935.81 $52.069.33 $27,798.18 $4.285.70 $47,083.17 $189.551.87 $63.939.11 EXPENSES: Prmctp dl Payment 920,000.00 $10.000.00 $30,000.00 $15,000.00 $0.00 $0.00 $75.000.00 $0.0D interest Expense $8,337.50 $28,925.00 $23.542.60 $12.807.80 622.680.00 $0.00 $91.272.50 $0.00 Psymg Agent Fees 5915.26 $432, 1447, 8434,Qp $450,25 i= $2410, $024.44 TOTAL EXPENSES 928.983.75 937,357.50 983,989W $28.212.00 923,110.25 50.00 $171,683.00 $620.00 Cash Surplus (de11e11) I?/31190 928.408.23 938,706.01 $55,17383 928.498.19 $21,671.45 $47,083.17 $222.511.87 $81.365.95 ADDITIONAL NOTES: Original Dona debt 111185,000.00 $350,000.00 $365.000.00 $155,000.00 9260,DOO.OD 9305.000.00 $580.00000 Outaland" Dona dobf 690.000.00 $330,000.00 9336.000.00 $110.000.00 $26D.000,00 $305,000 DO 9560.000 00 as of 12/31190 Principal s lmerelc 928.762.00 1138,283.00 951.655,00 926,689.00 922.680.00 $20.600.00 $38.502.00 paymems due 1n 1991 HRA AGENDA v 4-3-91 11. CONSIDERATION TO APPROVE THE USE OF TIF FOR THE AROPLAX CORPORATION PROJECT. A. BACKGROUND AND REFERENCE. Enclosed is a brief summary of the company and the proposed project. With the given building assumptions provided by Aroplax, County Assessor Doug Gruber was contacted for current estimated market values. After calculations, it appears the project would support a bond issuance of $110,000. Also outlined is a suggested TIF budget. Three questions must be considered: 1. Does the project meet the requirements to establish an Economic Development District? a. The project will discourage commerce, industry, or manufacturing from moving their operations to another state or municipality. b. The project will result in increased employment in the state. C. The project will result in preservation and enhancement of the tax base of the state. Will the revenues derived from the tax increment meet required purpose uses of an Economic Development District? Revenues derived from te+x increment of 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 ancilliary facilities, if at least ten percent of the buildings and facilities are used for a purpose other than: a. the mAmifnrturfng or production of tangible personal property, including processing resulting in the change of conditions of the property; b. warehousing, storage, and distribution of property, but excluding retail sales; c. research and development or telemarketing if that -7 acitivlty !e the exclusive use of the property; HRA AGENDA 4-3-91 d. other. The percentage of buildings and facilities that may be used for nonqualifying purposes is increased above ten percent, but not over 25 percent, to the extent the nonqualifying square footage is directly related to and in support of the qualifying activity. 3. Does the project meet the HRA guidelines? See enclosure. Upon consideration of the three above questions and the merit of the project to Monticello, the HRA may consider the following alternatives. B. ALTERNATIVE ACTIONS. 1. Approve the use of TIF for the Aroplax Corporation project. 2. Deny the use of TIF for the Aroplax Corporation project. �6 3. Table the decision. C. RECOMMENDATION. Recommendation to approve the use of TIF is based upon the HRA findings that the project meets statutory and local HRA requirements, and project merit. Enclosed is three alternative TIF process schedules to choose from and as preferred by RDS, Inc. D. SUPPORTING DATA. Project information, HRA guidelines, and TIP process schedule. 11 1 W d AROPLAX CORPORATION 2318 CHESTNUT AVENUE WEST MINNEAPOLIS, NN 55405 612-374-1722 OWNERS: Jerry Schoen, Paul Schoen, and Steve Schoen. BUSINESS: Plastic injection molding, tooling, and engineering Family business since 1943 JOBS: 20-25 WAGES: $7.00 - $8.00 FINANCIAL PACKAGE: SBA 504, Bank, TIF, and GMEF BUILDING ASSUMPTIONS: 120 X 160 - 19,200 square feet (first floor) 3,200 square feet mezzanine office 22,400 Total square footage Concrete tip -up panels Two docks and one overhead door SITE ASSUMPTION: West 408.91 feet of Lot 3, Block 2 BR 290-894-002031 Oakwood Industrial Park 5.6 acres or 243,936 square feet PID# 155-018-002030 89 Improvement Assessment, Due 1991 $102.30 Remaining Balance, $621.15 ESTIMATED MARKET VALUE: Doug Gruber, County Assessor, 3-26-91 Building: 16,000 eq ft @ $23.00 per eq ft a $368,000 3,200 aq ft @ $37.50 per sq ft- 12t 0,000 Total Building EMV $488,000 Land: 2 acres or 87,120 eq ft @ $.40 - $ 34,846 3.6 acres or 156,816 sq ft @ $.253$ 9,204 Total Land EMV 74.052 TOTAL EMV $562,051 NEW CAPACITY VALUE (NCV) $26,069 X .87780 - $22,883 TAXES ORIGINAL CAPACITY VALUE (OCV) S 1,876 (TAX BOOK '91) CAPTURED CAPACITY VALUE (CCV) $24,193 '91 TAX RATE .87780 TAX INCREMENT $21,2 7 AVERAGE ADJ TAX INCREMENT $21,045 BOND: $110,000 Issuance @ 9.5% over 8 years (184.05) Annual Debt/Service, $20,245.50 Collected adjusted increment over 8 years, $168,000 TIP PROPOSED BUDGET: Land $ 65,000 or $70,000 Site Impr $ 10,000 or $ 5,000 Administ $ 11,000 Discount $ 3,100 Cap Int 2,900 (24 mos) 0 Ieeuenee i3 ,000 ADJUSTMENT FACTOR: A. 6/91 B. 1/91 C. $1,876 D. 1/86 E. $1,708 F. $168 G. .09836 H. .019672 I. 1.02 YEAR OCV FACTOR ACV NCV RATE INCREMENT 91/92 $1,876 1.02 $26,069 .87780 92/93 $1,914 93/94 $1,952 $24,117 $21,170 94/95 $1,991 $24,078 $21,136 95/96 $2,031 $24,038 $21,101 96/97 $2,071 $23,998 $21,065 97/98 $2,113 $23,956 $21,029 98/99 $2,155 $23,914 $20,992 99/00 $2,198 $23,871 $20,954 00/01 $2,242 $23,827 $20,915 AVERAGE ANNUAL ADJUSTED INCREMENT $21,045 PROPOSED TIF DISTRICT NO. 1-12 (AROPLAB) AROPLA%.TIF 94 I t M • t PLq TPA a t j �Itl• ; lIORT1 g tiwt Mlxl YA CI" OF R , �. wau" ttwt lFoeAcl ' Co. i stt n" "M-CLO b _ _ O.�1y� IONIC! t�Ar nAlff 2 nCI1U[t[16 t JOTNM 1 +7p,T�a.pi ; TAM LAIR!' _ CIIAT - 'IOw 1C, itsvic [3 ! $I No" l_1,1•-.-w��3 ` lTpllanIt1 O► ttM'MID 1'f f rAFgt. Inc. t1aCtiJa1116 LN9uytawif,��t ntTA Its . rm CIIDIT and cc. '1 N4 .__ .. __ _ '�� ""' 1. 3.33 Ytt•. ! .«.. _. .. ....- VOi �' OV • PROMttD I L���• nn to PK �I'i'� alamtcll mawoo ntcwm 40 .11•• a-VISDOa a-ullawl illptln/A1 tlntA/ COIOAaT COMAP +. gE , Q^* ` MRTY"/al, Nroalnpl... i 2 I 1.1a Yct ', '''i r. 11 t ��• � a t • , �C. 1.1 YCf1. 3.1 • tK - 1. cr 1, 11 i o Na`a � i DUN Daa Rd 'Ci" Of ",",CtttA 1 wpat OAo . $ aan 'Imlc.Lw .M JOOt�COa ...■IVDP" u Iawa3ll . V- IAL tap. tm►itl ofani ttw awlf fttt .FttSIRiIDjt • • ` P,Y3 KI•. t 1 3.4*4.4 •Y.S , •.Y .4 WAYS, •o".8 w DATM HOUSING AND REDEVELOPMENT AUTHORITY City of Monticello TAR INCREMENT FINANCING POLICY Program Purposes The Monticello Housing and Redevelopment Authority will utilize Tax Increment Financing to support the community's long-term economic and housing goals. Policy Considerations: The HRA will analyze and evaluate Tax Increment Financing proposals based upon the following policy considerations. Each project shall be measured against these considerations and the project's value shall be determined, based upon meeting these considerations. e The project shall be consistent with the City's Comprehensive Plan. :2>^he project shall demonstrate long-term economic and/or ,;dftousing benefits to the community. (3) The project shall create and/or retain employment for Monticello residents. (4) The project shall increase moderate priced housing options for area residents. . . S0) The project shall facilitate the redevelopment or elimination of *substandard* or *blighted' areas as determined by the HRA. (� The project shall facilitate the "clean-up" of environmentally unsound property. (7) The project shall provide additional public funding for public improvements including utilities and/or park development which would not otherwise be available. (8) The project shall be deemed to promote additional desired •spin-off* development. POLICY GUIDELINES (1) Tax Increment Financing will be considered for use in economic development, redevelopment and special(.zed 17 housing projects. The standard level of assistance for �.l projects shall be as follower HRA AGENDA 4-3-91 TIF PROCESS SCHEDULE I. or HRA, use of TIF April 3, 1991 HRA, approval of TIF Plan April 11, 1991 PH of land sales? Distribution to Cty and School April 12, 1991 Council, call for PH date April 22, 1991 PC, TIF Plan consistent with Compre- May 7, 1991 hensive Plan Council, PH and TIF Plan approval Nay 13, 1991 TIF PROCESS SCHEDULE II. or HRA, use of TIF April 3, 1991 HRA, approval of TIF Plan April 24, 1991 PH of land sale? Distribution to the cty and school April 25, 1991 PC, TIF Plan consistent with Compre- Nay 7, 1991 hensive Plan Council, call for PH date Nay 13, 1991 Council, PH and TIF Plan approval Nay $9, 1991 9 9 TIF PROCESS SCHEDULE III. �o HRA, use of TIF April 3, 1991 HRA, TIF Plan approval May 1, 1991 PH of land sale? Distribution to cty and school May 3, 1991 PC, TIF Plan consistent with Compre- May 7, 1991 hensive Plan Council, call for PH date May 13, 1991 Council, PH and TIF approval June 10, 1991 EDA meeting for GNEF approval, Tuesday, April 23, 1991. SBA 504 submission, may 1 or 8, 1991. HRA AGENDA �. 4-3-91 14. CONSIDERATION TO SET A POLICY TO RECAPTURE THE HACA PENALTY FOR AROPLAR TIF DISTRICT WITH RECOMMENDATION TO THE CITY COUNCIL. A. REFERENCE AND BACKGROUND. Explanation under Agenda Item No. 5. �o ADDITIONS TO HRA AGENDA Wednesday, April 3, 1991 7a. CONSIDERATION TO ACCEPT HRA FINANCIAL REPORT. 11. CONSIDERATION TO APPROVE THE USE OF TIF FOR THE AROPLAX CORPORATION PROJECT. 12. CONSIDERATION TO SET A POLICY TO RECAPTURE THE RACA PENALTY FOR AROPLAX TIF DISTRICT WITH RECOMMENDATION TO THE CITY COUNCIL.