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
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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.
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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
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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.