HRA Agenda 08-02-1989AGENDA
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, August 2, 1989 - 7:00PM
City Hall
MEMBERS: Chairperson Al Larson, Ben Smith, Lovell Schrupp,
Everette Ellison, and Tam St. Hilaire.
STAFF: Rick Wolfateller, Jeff O'Neill, and 011ie Koropchak.
1. CALL TO ORDER.
2. APPROVAL OF THE JULY 5, 1989 HRA MINUTES.
3. CONSIDERATION OF AN UPDATE OF THE MANTEQ INTERNATIONAL PROJECT.
4. CONSIDERATION TO REVIEW A REVISED LETTER OF INTENT FOR DAVID
FICEK AND TO REVIEW A NEW TIF ANALYSIS.
5. CONSIDERATION TO HEAR A PRELIMINARY CONCEPT FOR USE OF TIF
FOR PUBLIC IMPROVEMENTS ASSOCIATED WITH THE EXPANSION OF
SEVENTH STREET.
6. CONSIDERATION TO HEAR A PRELIMINARY CONCEPT FOR USE OF TIF
FOR COSTS ASSOCIATED WITH THE CILLE PROPERTY. 1
7. CONSIDERATION TO ADOPT A RESOLUTION AUTHORIZING EXECUTION
OF A TAX INCREMENT PLEDGE AGREEMENT BETWEEN THE HRA AND
THE CITY.
8. CONSIDERATION TO ADOPT A RESOLUTION AUTHORIZING EXECUTION
OF THREE SEPARATE AMENDED AND RESTATED TAX INCREMENT PLEDGE
AGREEMENTS BETWEEN THE HRA AND THE CITY.
9. CONSIDRATION OF AN UPDATE ON THE NSP, BRIDGEWATER AND RUSS
MARTIE PROJECTS.
10. CONSIDERATION TO REVIEW AND DISCUSS THE BILLING STATEMENT
FROM BUSINESS DEVELOPMENT SERVICES, INC.
11. OTHER BUSINESS.
12. ADJOURNMENT.
I
MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, July 5. 1989 - 7:OOPM
City Hall
METERS PRESENT: Chairperson Al Larson, Ben Smith, Lowell
Schrupp, and Tom St. Hilaire.
MEMBERS ABSENT: Everette Ellison
CITY STAFF PRESENT: 011ie Koropchak
1. CALL TO ORDER.
Chairperson Al Larson called the HRA meeting to order at
7:04 PM.
2. APPROVAL OF THE JUNE 7, 1989 HRA MINUTES.
Lowell Schrupp made a motion to approve the June 7, 1989
HRA minutes, seconded by Ben Smith the HRA minutes were
approved as written.
3. CONSIDERATION TO HEAR RUSS MARTIE'S CONCEPT PLANS AND REOUEST
FOR THE USE OF TIF.
The item was tabled because of Mr. Martie's absent.
4. CONSIDERATION TO REVIEW THE LETTER OF INTENT WITH MR. FICEK
AND PLANS TO PROCEED.
This item was tabled bechuse of Mr. Ficek's absent. Mr.
Ficck having recently received the Letter of Intent was
not prepared for a presentation.
5. CONSIDERATION TO REVIEW MR. JIM BOYLE'S PLANS FOR CONSTRUCTION
OF MANTEO'S BUILDING AND REQUEST FOR THE USE OF TIF.
Koropchak reiterated the agenda supplement information regarding
the finanical status of the Boyle property and the County
Auditor's Office requirement that at the time a subdivision
is filed at the county all delinquent taxes, special assessments,
interest, filing fees, and ponalities plus current year
taxes and assessments must be paid in full. The 30,000 square
foot facility for Mantaq is proposed for location on the
Boyle property (freeway exposure) on Chelsea. Since tho
Manteq financial package is not complete, no definite building
plane have been drafted, it was of Mr. Boyle's opinion
that any type of presentation was too premature.
HRA MINUTES - 7/5/89
PAGE 2
6. CONSIDERATION TO REVIEW TAR INCREMENT DISTRICT NO. 1-8 PLANS.
Roropchak informed the RRA that NSP had gone out for third
bide on the proposed 5,600 sq ft maintenance building and
bid opening is expected Monday, July 10, 1989. Mr.
Zimmer will call after the bid opening.
7. CONSIDERATION TO DISCUSS AND REVIEW PLANS FOR BRIDGEWATER'S
RELOCATION.
Roropchak informed the NRA that the meeting between Mr.
Rierson and herself resulted with a suggestion from
Mr. Rierson for Bridgewater and the City to swap land
(Lot 6, Block 1, OIP Second Addition and Bridgewater
property on West County Rd 39). The TIP adjusted increment
projections over eight collectable years was approximately
$7,000. City Staff will evaluate the swap land option.
8. CONSIDERATION TO REVIEW THE TABULATION RESULTS FROM THE
JOINT GOVERNMENTAL UNITS MEETING.
The item was tabled because of Jeff O'Neill's absent.
9. OTHER BUSINESS.
None.
10. ADJOURNMENT.
The RRA meeting adjourned at 8:00 PM.
(� n
011ie Roropchak
HRA Executivo Secretary
HRA AGENDA - 8/2/89
3. CONSIDERATION OF AN UPDATE OF THE MANTEQ INTERNATIONAL PROJECT.
A. REFERENCE AND BACKGROUND.
The Letter of Intent addressed to Mr. Norm Strand, President
of Manteq International, Inc. Midland, MI has not been
executed as the company is requesting an additional $100,000
in working capital. Pat Pelstring is revising the financial
proposal. Plane are to have all financial information by
the end of August and Manteq requested financing in order
by the end of September. Plans are for Manteq to lease a
30,000 sq ft office, research/lab, warehouse to be constructed
on the north side of Chelsea Road (freeway exposure) on
Boyle's property. Potential of 50 jobs.
4. CONSIDERATION TO REVIEW A REVISED LETTER OF INTENT FOR DAVID
FICEK AND TO REVIEW A NEW TIF ANALYSIS.
Mr. David Ficek wasn't at our last HRA meeting because he had
just received the letter of intent and thereafter had met with
Mr. Pelstring for Estimated Market Values and property sizes.
As you may remember the HRA recommended only Phase I which was
the proposed 22 unit townhouses on Block G and H. Enclosed
is a copy of Mr. Ficek's letter received a few days ago,
please note Mr. Ficek's change in redevelopment proposal.
Mr. Pelstring will attend the HRA meeting and present to
the HRA revised copies of a Letter of Intent and a revised
TIF analysis as this proposal alters the development cost
per unit. Mr. David Ficek will also be present at the meeting.
I suggest the HRA review the new proposal as presented by Pat
Pelstring and David Ficek and consider a recommendation
to proceed or not to proceed with the revised development
plan
5. CONSIDERATION TO HEAR A PRELIMINARY CONCEPT FOR USE OF TIF
FOR PUBLIC IMPROVEMENTS ASSOCIATED WITH THE EXTENSION OF
SEVENTH STREET.
A. REFERENCE AND BACKGROUND.
Last week Mr. Charles DuFroano, President of Lincoln Properties,
Inc., met with City Staff and presented for the first time
preliminary site plans for an 92,000 eq ft expansion addition
to the present Monticello Mall of which approximately 86,000
aq ft will be leased to K -Mort. According to Mr. DuFreeno,
Lincoln Properties, Inc. has a signed lease agreement with
K -Mart and has a purchase agreement for the adjoining 12 acres. His purpo
to meet with City Staff was to discuss the extension of
Seventh Street and potential need for water and eawor.
The time table presented at the meeting was to begin the
estimated 5 month construction period in September with
a 45 to 60 day period for stocking the store with an
anticipated store opening in spring of '90. City Staff
HRA AGENDA - 8/2/89
Page 2
5. CONTINUED.
will request from the city engineers, OSM, a study and cost
estimates for the needed public improvements.
City Staff recognizes the proposed developments as a
political issue and the concerns of the existing businesses,
however, City Staff presents the HRA with the option
to consider the use of SIF for needed public improvements.
Please remember this is a preliminary discussion as numbers
are yet to be gathered and City Staff hasn't asked to see
actual signed lease agreements. Preliminary projected
increment over eight years is approximately $950,000.
HRA considerations: Creation of an Economic Development
District in accordance to Minn. Statutory.
- Meets Monticello HRA TIF Policies.
- Uses for TIF.
- Public purpose and impact on community.
- Scope of project.
- Meets Central Munticellu Redevelopment Plan objectives.
Please refer your copy of the HOUSING AND REDEVELOPMENT AUTHORITY
City of Monticello TAX INCREMENT FINANCING POLICY as adopted
by the HRA as a guideline for preliminary evaluation.
Agaln,City Staff is not recommending the NRA use TIF, City
Staff is only asking the HRA to consider use of TIF.
6. CONSIDERATION TO HEAR A PRELIMINARY CONCEPT FOR USE OF TIF
FOR COSTS ASSOCIATED WITH THE GILLE PROPERTY.
A. REFERENCE AND BACKGROUND.
Some time ago the HRA heard about the Gille property as Mr.
Jim Metcalf approached the HRA regarding their interest to
develop housing/housing units in this area, however, the idea
was dropped due to neighborhood resistance of potential
toning change from R-2 to R-3.
A few weeks ago Gary Anderson and Jeff O'Neill mot with the
Gilles about various blight conditions on their property and
suggested the Gilles reduce the sales area to that of 1975
as determined through oorial photos. According to the
City Ordinance, the use of the property as a site for car
sales if reduced to it's 1975 sales area would permit the Gilles to
continued car sales as a legal but non -conforming use in a
R-2 sono (refer to Tom Hayes' enclosed letter). It is my
understanding that Mr. Gilla has purchased the adjoining Read
property. City Staff suggests the NRA consider the options
outlined in Mr. Hayes' latter. Also, enclosed are cost
estimates and options for soil boring toots from Braun Testing
and prepared by John Simola to assist with City/HRA options.
HRA AGENDA - 8/2/89
PAGE 2
6. CONTINUED.
At present the City Staff is not aware of a planned development
for the area. Mr. O'Neill will present more detailed
information at the meeting.
Again.I suggest the HRA follow the same considerations for this
project as outline in the previous agenda item.
Considerations: 1. Creation of a Development District in accordance
to the Minnesota Statutory.
2. Meets the Central Monticello Redevelopment Plan
objectives.
3. Meets the Monticello HRA TIF Policies.
4. Uses for TIF.
5. Public purpose and impact to community.
6. Scope of project.
7. CONSIDERATION TO ADOPT A RESOLUTION AUTHORIZING EXECUTION
OF A TAX INCREMENT PLEDGE AGREEMENT BETWEEN THE HRA AND
THE CITY.
A. REFERENCE AND BACKGROUND.
The pledge agreement between the HRA and the City means that
if 1) The City sells the bonds.
2) The proceeds from the bond sale will be available to
the HRA for redevelopment costs.
3) Increment collected from the District will be placed
in a Project fund.
4) Prior to February 1 and August 1 funds with be transferred
from the Project fund to the debt service account for
payment of bonds.
5) Etc.
The pledge agreement is for the $260,000 General Obligation
Taxable Tax Increment Bonds Sales for the Broadway Square
Project.
The bond sales wore awarded by the City Council to Miller
Securities, Inc. at 8.87082 Interest on July 10th.
As the HRA has endorsed this project from the beginning, I
suggest the HRA make a motion to adopt a resolution authorizing
execution of a tax increment pledge agreement between the
HRA and the City for the ;260,000 G.O. Taxable T1 Bond Sales.
Enclosures are copies of the resolution, the agreement, and
a copy of the bond awards.
HRA AGENDA — 8/2/89
PAGE 3
8. CONSIDERATION TO ADOPT A RESOLUTION AUTHORIZING EXECUTION
OF THREE SEPARATE AMENDED AND RESTATED TAX INCREMENT PLEDGE
AGREEMENTS BETWEEN THE HRA AND THE CITY.
A. REFERENCE AND BACKGROUND.
These pledge agreements between the HRA and the City will amend
and restate the pledge agreement for FSI District, Construction
Five District and Raindance Properties District. The amendment
will reduce the the HRA pledge of 150% of the annual principal
and interest due on the bonds to an amount equal of 105%
as required by Minnesota Statutory.
As the HRA researched and endorsed the possibly of excess
funds for future small projects or projects of good value
without planned redevelopments, with the intent all newly created
district• project costs should equal the availability of the
project increment. I suggest the HRA make a motion to adopt
the resolution authorizing exec ion of three separate amended
and restated TI pledge agreements.
Enclosed a copies of the resolution and one pledge agreement.
9. CONSIDERATION OF AN UPDATE ON THE NSP. BRIDGEWATER, AND RUSS
MARTIE PROJECTS.
To be presented at the meeting.
10. CONSIDERATION TO REVIEW AND DISCUSS THE BILLING STATEMENT
FROM BUSINESS DEVELOPMENT SERVICES. INC.
A. REFERENCE AND BACKGROUND.
Enclosedis a copy of the billing statement received from
BDS. Inc. for your reviev. According to my understanding
of the HRA Contract vir h BSD, I have no problems with the
billing. Jeff O'Neill having some questions of Mr. Pelstring
regarding our contract, yet unable to be in touch with
him at this time, will present his concerns at the meeting
after talking with Mr. Pelstring.
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MONTIClLLO W/K!
2075 H WALNUT STREET
F.O. Box SSS
MONTICELLO. MINNESOTA SS362.OWS
OI/K! w1011! p.b bK4l.OT
July 18, 1989
Mr. Fred Gills
1310 West Broadway
Monticello, MN 55362
SMITH & HAYES
ATTORNEYS AT LAW
GREGORY Y. SMITH. J.O.
GARY L. MINGLE. J.D. 41940- 19"
THOMAS D. HAYES. J.D.
RICHARD O. CLOUGH. J.D.
— KIP!! O//K!
CINEMA PROFESSIONAL BLDG.
SS7 MAIN ST.. SUITS 102
ELK RIPER. MINNESOTA 6032D
d/K!/..OI.l p1b Nl•ib
On July 13, 1989 the undersigned, Gary Anderson and Jeff O'Neill from the City
of Monticello met with you and your wife about various blight conditions on you
property cited in notices from the City and the subject of the pending
litigation in Wright County District Court. During a tour of the property you
showed us the steps you have taken to eliminate some of the blight and discussed
your plans to further eliminate the blight. Because or the progress you have
made to date the City is willing to continue the July 28, 1989, court hearing as
it pertains to your property for 30 days. During the 30 day continuance the
City will continue to monitor your progress on blight eradication. Failure to
make satisfactory progress on elimination of the blight will result In the City
rescheduling the Court hearing.
At our meeting on the 13th another issue of broader concern was also discussed.
This Issue pertains to your expansion of your business since the adoption of
Monticello's zoning ordinance. After Monticello adopted its current zoning
ordinance, your business became a non -conforming use, Inconsistent with the
zoning classification of your property. Existing non -conforming uses were
permitted to continue under the ordinance.
However, under chapter 3, Section 3-1 (B), existing non-conrorming uses are not
permitted to expand. Since 1975, your business has grown and expanded
significantly. Aerial photographs over time show that your business has doubled
in the percentage of your property occupied by vehicles and parts and has more
than doubled in terms of the number of automobiles Stored on the property.
This expansion cannot be permitted to continue and operations must be reduced
to those existing in 1975. It to necessary for you to formulate a plan with
reasonable timetables to reduce operations; otherwise, the City will be forced
to seek the assistance of the District Court.
Those present on 7/13 discussed on possible option to eliminate both the blight
and the non -conforming use issues. That option Involved the relocation of your
business to the Monticello Industrial Park. You have in the poet explored this
option on your own. At the meeting it was suggested that the relocation of your
business would be a more realistic option it you and the City (through the HRA
and/or the Economics Development Authority) worked together as a team. For
example the HRA may be a potential buyer of your property on Broadway.
Assistance may also be available in obtaining partial financing through or in
oonjuction with an EDA program. While those present at the 7/13 meeting cannot
make purchase or financial commitments, Mr. O'Neill did indicate that he would
be in contact with the HRA to get a feel on how HRA and EDA could be used in
Page Two
Fred Giille
July 18, 1999
If the HRA (or for that matter anyone else) is a potential buyer two things must
be aocomplised prior to formalizing any sale: 1) an appraisal of the property
would have to be conducted; and 2) soil samples would have to be taken to
determine whether any soil contamination is present. As you know there are
underground petroleum storage tanks located on your property. Tire existence of
the Lanka is a material fact which would have to be considered oy any potential
purchaser of the property . Failure to disclose the existence of the tanks to a
potential buyer could constitute a misrepresentation by the seller. Soil
saxpling would disclose whether at any time the tanks leaked and the extent of
any leakage. The State Pollution Control Agency is very concerned about
underground storage facilities within Minnesota. It is probable that in the
near .Mture the PCA will implement a plan of abandon tank removal. Inspection
and soil testing will be an obvious part of any removal plan. Rather than have
the PCA involved, it would be preferrable for any party with undergroud tanks to
know in advance what if any leakage problems have occured. If any problems do
exist, the impart of that fact could be taken into account in arriving at a
purchase price on other terms of sale.
The City'a willingness to work with you as a team member will be largely
dependent on the following factors:
1) cooperation in obtaining the appraisal and soil testing;
2) continued efforts on you part to eliminate blight;
3) availability of HRA/EDA resources.
It the City does not perceive that it has your cooperation in 0 and 2), then
the City's course of action would be limited to blight erradication and
initiating action to eliminate the expansion of the non -conforming use.
Tours truly.
Thoma D. Hayes
fDH/sca
File No. 97-16098
cot Jeff O'Neill
011le [oropchak
250 East Broadway
Monricello, MN 55362.9245
Phone:(612) 295.2711
Metn': (612) 333.5739 MEMO
TO: 011ie Roropchak, Economic Development Director
FROM: John Simla, Public Works Director
DATE: July 27, 1989
RE: Investigation costs for determining soil or ground
water pollution from underground tanks
As you requested, I contacted Braun Engineering to obtain costa
to determine the existence or non-existence of soil or ground
water pollution from underground fuel tanks. There are
basically three scenerios that can be used in the situation such
as this. The first scenario is to remove the tank or tanks and
sample the contents of the tank as well as the soil in and about
the tank. If there is a small amount of pollution of the soil,
the soil can be removed, land spread, and air dried to evaporate
the pollutants.
If one does not want to remove the tank before determining the
existence of pollution, it would be possible to place one or two
soil borings near the tank and sample the soil and ground water
during these borings. Assuming that the upper surface is
concrete and it would need to be cored, two borings as well as
the soil or water testing could cost in the neighborhood of
$2,500 to 83,000. This could be reduced by doing only a single
boring and could be further reduced if the boring could be
located where there is no concrete.
The last scenerio, if the site is not accessible, to to place a
monitoring well to the north of the existing tanks on the county
highway right-of-way. The monitoring well would allow sampling
of the ground water over a period of time to determine the
extent of ground water pollution. This is the most expensive
method in that the well has to be drilled to Minnesota pollution
Control Agency standards for ouch wells and would coat in the
t neighborhood of $3,500 for the well and sampling. Then, in
addition, the well would have to be abandoned properly and would
coot another 8650 to abandon. 'N\
Mean
011ie Koropchak
July 27, 1989
Page 2
In this particular case, unless there is some reason to expect
vide spread contamination, the most cost effective method of
investigation would be to remove the tank or tanks and do the
saapling at that time.
If you have any questions, please feel free to contact me.
fully,
a-'e��w
ohn B. Simola
Public Works Director
JfSAd
cc: Pile
is
I
1
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO, MINNESOTA
RESOLUTION NO.
RESOLUTION AUTHORIZING EXECUTION OF A TAE
INCREMENT PLEDGE AGREEMENT
WHEREAS, the Monticello Housing and Redevelopment Authority (the
"HRA') has heretofore established Tax Increment Financing District No. 1-2 (the
'District"), prepared a Tax Increment Financing Plan (the "Plan") for the District,
and has heretofore approved the Plan; and
WHEREAS, the City Council of the City of Monticello (the "City") has
heretofore approved the Plan; and
WHEREAS, In order to finance the District, it is necessary that the
Authority enter Into a Tax Increment Pledge Agreement with the City pursuant to
Minnesota Statutes, Section 489.178, securing $480,000 aggregate principal amount
of General Obligation Taxable Tax Increment Bonds, Series 1989A of the City and
the interest thereon, issued to finance the District.
NOW, THEREFORE, BE IT RESOLVED by the Monticello Housing and
Redevelopment Authority,
1. That the Chair and the Secretary of the HRA are hereby authorized
and directed to execute the Tax Increment Pledge Agreement (the "Agreement") on
behalf of the Authority in substantially the form attached hereto as Exhibit A and
Incorporated herein by reference.
4. Upon execution of the Agreement by the parties thereto, the
Secretary of the Authority Is hereby directed pursuant to Minnesota Statutes,
Section 489.178, to file an executed copy of the Agreement with the County
Auditor of Wright County, Minnesota.
Adopted this _ day of July, 1989.
Attests
secretary
Chair
ERIIIBIT A
TAR INCREMENT PLEDGE AGREEMENT
by and between
THE CITY OF MONTICELLO, MINNESOTA
and
THE HOUSING AND REDEVEI.OPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO, MINNESOTA
THIS AGREEMENT is made and entered into on or as of the day of
, 1989, by and between the City of Monticello, Minnesota (the "City'),
and The Housing and Redevelopment Authority in and for the City of Monticello,
Minnesota (the "HRA').
WHEREAS, the HRA established Tax Increment Financing District No. 1-2
(the "District"), prepared the Tax Increment Financing Plan (the "Plan') for the
District, and approved the Plan, as modified, on , 1989; and
WHEREAS, the City Council of the City approved the Plan, as modified, on
, 1989; and
WHEREAS, pursuant to authority conferred by Minnesota Statutes, Section
169.178, and Minnesota Statutes, Chapter 475, the City has agreed to finance
eertaln public redevelopment costs to be Incurred by the NRA in the District
throogfi the Issuance of general obligation bonds of the City, designated the
1260,000 General Obligation Taxable Tax Increment Bonds, Series 1989A (the
"Bends")l and
WHEREAS, the HRA has agreed to pledge certain tax Increment revenues to
the City for the payment of the principal of and Interest on the Bonds; and
WHEREAS, pursuant to Minnesota Statutes, Section 169.178, aubd. 2, any
agreement to pledge tax Increment revenues must be made by written agreement
by and between the HRA and the City and must be filed with the County Auditor of
Wright Countyl
NOW, THEREFORE, the City and the NRA mutually agree to the followings
(1) The City will sell the Bonds.
(2) The proceeds from the sale of the Bonds and the earnings from
the Investment of such proceeds will be made available to the HRA to pay
or reimburse the HRA for public redevelopment costs paid, Incurred, or to
be paid or incurred, by the NRA In the District.
(2) All tax Increment generated by the District from and after the
date of this Agreement shall be deposited In a special fund (the "Project
Fund") held by the HRA. The HRA hereby pledges to the payment of the
principal and Interest on the Bonds, tax increment from the Project Fund In
an amount equal to 105% of the annual principal and Interest due on the
A-1
(4) Not later then five (5) business days prior to each February I
and August I debt service payment date for the Bonds, there shall be
transferred from the Project Fund to the Debt Service Account maintained
by the City for the payment of the Bonds, an amount which when taken
together with amounts already on deposit in the Debt Service Account, is
equal to the principal and Interest next due on the Bonds. If at any time the
Project Fund contains an amount to excess of the amount to be transferred
to the Debt Service Account for the payment of the Bonds on the following
two debt service payment dates (excluding debt service payment dates for
which Interest is payable from proceeds of the Bonds deposited in the Debt
Service Account), then such excess amounts shall be available to the HRA to
pay or reimburse the HRA for public redevelopment costs paid, incurred, or
to be paid or incurred, by the HRA in the District.
(5) Without regard to anything in this Agreement to the contrary,
tax Increment generated by the District shall be available to pay principal
of and interest on both the Bonds and any other obligations Issued by the
City, HRA or any other public body to finance public redevelopment costs
paid or incurred by the HRA In the District.
(6) When the entire public redevelopment costs of the District
have been paid and all principal and Interest on the Bonds and other
obligations Issued to finance the public redevelopment costs of the District
have been paid, and the City has been reimbursed from collections of tax
Increment from the Project for collections of general ad valorem taxes used
to pay principal of and Interest on the Bonds, then the HRA shall report such
fact to the City Council of the City and the HRA shell submit a final
statement of such payments. Upon audit of this statement and approval
thereof by the City Council, the payment of the expenditures of the HRA in
the Project shall be reported to the County Auditor of Wright County.
(7) An executed copy of this Agreement shall be filed with the
County Auditor of Wright County.
IN WITNESS WHEREOF, the City and the HRA have caused this Agreement
to be duly executed on their behalf and their seats to be hereunto affixed and such
signatures and seals to be attested, as of the day and year first above written.
ATTEST: CITY OF MONTICELLO
BY
Administrator Mayor
(SEAL)
ATTEST: THE HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE
CITY OF MONTICELLO, MINNESOTA
By
Secretary Chairman \
A -i
SPRINGSTED
PUBUC FOdANU ADVISORS
85 East sev" Plata. Slate too
Sam Pad. Mmneada 55101.2143
6122233000
Fa. 612.2233002 = 1
�C
$260,000
CITY OF MONTICELLO, MINNESOTA
GENERAL OBLIGATION TAXABLE TAX INCREMENT BONDS, SERIES 1089A
AWARD: MILLER SECURITIES, INCORPORATED
SALE: Juty 10,1989 Moody's Rating: A
Interest Not interest
Bidder Rates Price Coat 8 Rate
MILLER SECURITIES, INCORPORATED 8.40% 1992-1993 $256,360.00 $283,425.00
8.50% 1994.1996 (8.8708%)
8.60% 1997-1999
8.70% 2000-2001
8.75% 2002.2003
8.80% 2004.2005
8.85% 2006.2007
ALLISON-WILLIAMS COMPANY 8.30% 1992.1995 $256.100.00 5288236.25
8.40% 1996 (8.988881 %)
8.50% 1997
8.60% I N$
8.70% 1999
8.75% 2000.2001
8.80% 2002.2003
8.90% 2004.2005
9.00% 2008.2007
PIPER, JAFFRAY & HOPWOOD 9.00% 1992.1998 $255,320.00 $288,033.75
INCORPORATED 9.10% 1999-2000 (9.328130%)
9.15% 2001.2002
9.20% 2003.2004
9.25% 2008.2007
n
These bonds are being reoffered at par.
r.
BBI: 7.00
Average Maturhy: 12.29 pars
Iroon1 Onca wlsco !$A01nce
251 None 1103A Strout. Sura 1510 500 Elm Wove Roan, Sudo 101
Ina a poem Ir4dna 46204.1042 Elm Wovo WwtOnsn 531224037
317,2373636 414782,8222
ra. 311.237,3839 ra. 4144822904
HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR
THE CRY OF MON9iCELLO, MINNESOTA
RESOLUTION NO.
RESOLUTION AUTHORIZING EXECUTION OF THREE
SEPARATE AMENDED AND RESTATED TAX
INCREMENT PLEDGE AGREEMENTS
Be it resolved by the Housing and Redevelopment Authority In and for the
City of Monticello, Minnesota (the "HRA') as follows:
WHEREAS, the HRA has entered Into the following three tai Increment
pledge agreements with the City of Monticello (the "City'):
1. Tax Increment Pledge Agreement, dated December 9, 1985,
concerning the City's $350,000 General Obligation Tax Increment Bonds, Series
1985;
L Tax Increment Pledge Agreement, dated April 27, 1987, concerning
the City's $385,000 General Obligation Tax Increment Bonds, Series 1987A; and
3. Tax Increment Pledge Agreement, dated June 22, 1987, concerning
the City's $155,000 Taxable General Obligation Tax Increment Bonds, Series 1987B;
(such agreements are hereinafter referred to collectively as the "Pledge
Agreement"); and
WHEREAS, the City and the HRA desire to amend the Pledge Agreements.
NOW, THEREFORE, be It resolved as follows:
1. The Pledge Agreements shall be amended and restated In
substantially the form attached hereto as Exhibit A, and the Chair and Secretary
are hereby authorised to execute the same with such necessary and appropriate
variations, omissions and Insertions as are not materially Inconsistent with such
form as the Chair, In his discretion, shall determinel provided that the execution
thereof by the Chair shall be conclusive evidence of such determination.
2. An executed copy of each such Amended and Restated Pledge
Agreement Mall be filed with the County Auditor of Wright County.
Adopted this _ day of July, 1989.
Chair
Atteatr
Secretary
EXHIBIT A
AMENDED AND RESTATED
TAX INCREMENT PLEDGE AGREEMENT
by end between
THE CITY OF MONTICELLO, MINNESOTA
and
THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO, MINNESOTA
THIS AGREEMENT Is made and entered Into on or as of the day of
, 1989, by and between the City of Monticello, Minnesota (the "City"),
and The Housing and Redevelopment Authority in and for the City of Monticello,
Minnesota (the "HRA').
WHEREAS, the HRA established Tax increment Financing District No.
(the "District"), prepared the Tax Increment Financing Plan (the "Plan') for
the District, and approved the Plan, as modified, on , 1989; and
WHEREAS, the City Council of the City approved the Plan, as modified, on
, 19891 and
WHEREAS, pursuant to authority conferred by Minnesota Statutes, Section
189.178, and Minnesota Statutes, Chapter 475, the City has agreed to finance
certain public redevelopment costs to be incurred by the HRA in the District
through the Issuance of general obligation bonds of the City, designated the
S (Taxable) General Obligation Tax Increment Bonds, Series _ (the
"Bonds"); and
WHEREAS, the HRA hes agreed to pledge certain tax Increment revenues to
the City for the payment of the principal of and Interest on the Bonds;
WHEREAS, pursuant to Minnesota Statutes, Section 189.178, subd. S, any
agreement to pledge tax Increment revenues must be made by written agreement
by and between the HRA and the City and must be filed with the County Auditor of
Wright County; and
WHEREAS, on , . the City and the [IRA entered
Into a Tax Increment Pledge Agreement (the aPrlor Agreement") which the City
and HRA now wish to amend and restate In Its entirety.
NOW, THEREFORE, the City and the [IRA mutually agree to the followings
(1) This Agreement replaces the Prior Agreement, which shell no
longer remain In force and effect.
(2) All tax Increment generated by the District from and after the
dale of this Agreement shall be deposited In a special fund (the "Project
Pund") held by the HRA. The HRA hereby pledges to the payment of the
principal and Interest on the Bonds, tax Increment from the Project Fund In
an amount equal to 108% of the annual principal and Interest due on the
Bonds.
A-1 9
(3) Not later than five (S) business days prior to each February I
and August l debt service payment date for the Bonds, there shall be
transferred from the Project Fund to the Debt Service Account maintained
by the City for the payment of .he Bonds, an amount which when taken
together with amounts already on deposit In the Debt Service Account, Is
equal to the principal and interest next due on the Bonds. If at any time the
Project Fund contains an amount in excess of the amount to be transferred
to the Debt Service Account for the payment of the Bonds on the following
two debt service payment dates (excluding debt service payment dates for
which interest Is payable from proceeds of the Bonds deposited M the Debt
Service Account), then such excess amounts shall be available to the HRA to
pay or reimburse the HRA for public redevelopment costa paid, Incurred, or
to be paid or incurred, by the HRA In the District.
(4) Without regard to anything in this Agreement to the contrary,
tax Increment generated by the District shall be available to pay principal
of and interest on both the Bonds and any other obligations issued by the
City, HRA or any other public body to finance public redevelopment costs
paid or Incurred by the HRA in the District.
(5) When the entire public redevelopment costa of the District
have been paid and all principal and Interest on the Bonds and other
obligations Issued to finance the public redevelopment coats of the District
have been paid, and the City has been reimbursed from collections of tax
Increment from the Project for collections of general ad valorem taxes used
to pay principal of and interest on the Bonds, then the HRA shall report such
fact to the City Council of the City and the HRA Mall submit a final
statement of such payments. Upon audit of this statement and approval
thereof by the City Council, the payment of the expenditures of the HRA in
the Project Mall be reported to the County Auditor of Wright County.
(g) An executed copy of this Agreement shall be filed with the
County Auditor of Wright County.
IN WITNESS WHEREOF, the City and the HRA have caused this Agreement
to be duly executed on their behalf and their seals to be hereunto affixed and such
signatures and seals to be attested, as of the day and year first above written.
AT' LM CITY OF MORTICELL0
BY
Administrator Mayor
(SEAQ
AFi'6M THE HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE
CITY OF MONTICELLO, MINNESOTA
By
Secretary Chairman d
A-! e
July 14, 1989
Ms. Olive Koropchak
City of Monticello
P.O. Box 83A
Monticello, MN 55362
STATEMENT
&wnm Dwalopff"* Sarloos LIG
TIF POLICIES
02/24/89
PWP
Work Up TIF Policies and
Procedures
2.60
02/28/89
PWP
T.C. w/0. Koropchak
.25
03/17/89
PWP
Mt.g. w/0. Koropchak and J. O'Neil
re: Rev. Policies and Procedures
2.80
04/20/89
DLG
Draft of TIF Application
1.00
PWP
T.C. w/0. Koropchnk and J. O'Neil
.60
04/26/89
DLG
TIF Application
.50
Total flours --TIF Policies 7.75
HRA HOUSING MARKET AND FINANCIAL ANALYSIS
02/01/89 PWP Prep. for Mt.g.; HRA Mtg. 3.60
03/22/89 PWP Mt.g. w/IIRA 2.60
04/03/89 PWP Mtg. w/J. O'Neil and 0.
Koropchnk 2.40
04/19/89 PWP Mt.g. w/0. Koropchnk 1.50
05/09/89 PWP Marketing F.U. w/D. Ficek; T.C. w/
0. Koropchnk 1.50
05/26/89 PMP Mt.g. w/L. nahlnaki; Contact w/
Mnnteq; Rev. w/O. Koropchnk 2.40
06/30/89 PMP Prep. Mnnteq Proposal 8O
05/31/89 PWP MI.g. w/D. Habinsitl; It. Ficek;
Rev. Manteq 3.10
06/06/89 PWP (lousing Marketing 1.60
06/07/89 PWP Mt.g. w/IIRA to Rev. Options for
(lousing Development. 3.10
06/09/89 PWP Fin. Annlysis for D. Ficok Proj. 3.40
Total llours--IIRA (lousing Market and Financial Analysis _.28.,9`0
8900 90 08MI N OMIT 0 SM !f8 0 MO8101 CIA M 55W 0 PII0W 61t/f86.6151
Ms. Olive Koropchak
July 14, 1989
Page 2
IND. MARKETING/PROPOSALS
02/13/89
DLG
Mtg. w/City re: Genereau Proj.
4.80
02/15/89
DLO
G. Anderson re: Genereau Proj.
.30
03/28/89
DLG
Genereau Proj.
.50
04/03/89
DLG
Genereau Proj.
1.00
05/04/89
PWP
T.C. and Ltr. to A. Renner
.70
05/17/89
PWP
Mtg. w/J. Boyle and C. Larsen
1.80
05/26/89
PMP
•
s Hours shown under
HRA Housing Marketing and Financial
Analysis
section
Total hours --Ind. Marketing/Proposals 9.10
Total Billable Hours --TIF POLICIES
P. Pelstring--6.25 Hours N 675/11our
f 468.75
D. Grams --1.50 Hours a 665/Hour
97.60
Total Billable (lours --HRA (lousing Market and Financial
Analysis
P. Pelstring--25.90 Hours B 675/11our
1,942.50
Total Billable (lours --Ind. Market ing/Proposala
P. Pelatring--2.60 A 675/11our
187.50
D. Grams --6.60 Hours a 665/Hour
429.00
Additional Expenses
117.00
Total Amount Due
63,242.25
CURRENT OVER 30VEp R as OVER 90
63,242.25
TERMS: NET DUE UPON RECEIPT, 1.33% PER MONTH SERVICE CHARGE ON
PAST DUE ACCOUNTS
10