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HRA Agenda 03-07-1990AGENDA MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY vl Wednesday, March 7, 1990 - 7:OOPM City Hall MEMBERS: Chairperson Al Larson, Ben Smith, Lovell Schrupp, Everette Ellison, and Tom St. Hilaire. CITY STAFF: Rick Wolfeteller, Jeff O'Neill, and 011ie Koropchak. GUEST: Remmele Engineering, Inc. representative (9). Business Development Services, Inc. 1. CALL TO ORDER. 2. APPROVAL OF TILE FEBRUARY 7, 1990 HRA MINUTES. 3. PUBLIC HEARING FOR THE DISPOSITION OF LANDS RELATING TO TAR INCREMENT FINANCE PLAN FOR TAX INCREMENT DISTRICT NO. 1-10 (REMNELE ENGINEERING, INC.). 4. CONSIDERATION TO APPROVE THE CERTIFICATE OF COMPLETION AND RELEASE OF FORFEITURE FOR THE BROADWAY SQUARE LIMITED PARTNERSHIP. 5. CONSIDERATION TO DISCUSS AND ESTABLISH A DATE FOR A JOINT MEETING BETWEEN THE HRA AND THE CITY COUNCIL REGARDING TIF POLICIES. 6. CONSIDERATION OF PROJECT UPDATES: DAVID FICEK TAPPER, INC. MARTIE'S FARM SERVICE K -KART 7. CONSIDERATION TO REVIEW AND ADOPT 1990 HRA GOALS. B. CONSIDERATION TO REVIEW YEAR END TIP DISTRICTS REPORT. 9. CONSIDERATION OF INFORMATION: IDC 1990 GOALS AND BUDGET CHAMBER OF COMMERCE 1990 GOALS AND BUDGET SUMMARY FROM STAR CITY'S ANNUAL REPORT 10. OTHER BUSINESS. 11. ADJOURNMENT. MINUTES MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY Wednesday, February 7, 1990 - 7:00 PM L City Hall MEMBERS PRESENT: Chairperson Al Larson, Ben Smith, Everette Ellison, Tom St. Hilaire, and Lovell Schrupp (late 8:15PM). CITY STAFF PRESENT: Jeff O'Neill and 011ie Koropchak. GUEST: Russ Martie, Martie Farm Service, Inc. Pat Pelstring, Business Development Services. Inc. 1. CALL TO ORDER. The HRA meeting was called to order at 7:10 PM by Chairperson Al Larson. 2. APPROVAL OF THE JANUARY 3, 1990 HRA MINUTES. A motion to approve the January 3, 1990 HRA Minutes was made by Ben Smith and seconded by Everette Ellison. With no further discussion the minutes were approved as written (4-0). 3. PUBLIC HEARING AND CONSIDERATION TO ADOPT THE RESOLUTION RELATING TO THE MODIFICATION. BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO. OF THE REDEVELOPMENT PLAN RELATING TO REDEVELOPMENT PROJECT NO. 1. THE MODIFICATION OF THE TAR INCREMENT FINANCING PLANS RELATINGTO TAX INCREMENT FINANCING DISTRICT NOS. 1-1 THROUGH 1-8 AND THE APPROVAL AND ADOPTION OF THE TAX INCREMENT FINANCING PLAN RELATING TO TAX INCREMENT FINANCING DISTRICT NO. 1-9. ALL LOCATED WITHIN REDEVELOPMENT PROJECT NO. 1. (TAPPER. INC.). Chairperson Larson opened the public hearing for the disposition of lend relating to the TIF Plan of TIF District No. 1-9. With no public oral or written comment and no oral or written comment from the county, the school district, or the hospital district, the public hearing was cloaed. The TIF Plan budget consist of up -front assistance to Tapper. Inc. for land acquisition of $77.500 with remaining budget for soft costs, captalited interest, etc. The life of the district Is 10 years. 8 years of collectible tax increment. Total financial package for Tapp ©r, Inc. le TIF, $77,500; Small Business Development Loan. $820.000; Greeter Monticello Enterprise Fund, approximately $100,000; and equity approximately $28,800. Final approval by the state on the SBDL is expected in February or early March. The HRA verified that the use of TIP or the $77 .500 is like an interest free loan, in actuality it's a grant HRA Minutes 2/7/90 Page 2 i 3. CONTINUED. to the company. The project meets the "but for" test as the project would not occur without the assistance of TIF. The HRA reviewed the project against the HRA policies and found the project met HRA policy considerations: The project is consistent with the City's comprehensive plan, the project demonstrates long-term economic and housing benefits to the community, the project shall create employment, and the project sahll be deemed to promote additional desired spin-off development. The TIF land acquisition is for 7.6 acres of land in the Oakwood Industrial Park, Lot 4, Block 2, currently owned by Oakwood Industrial Partnership. Land sale negotiations were between the Tappers and the Partnership. The HRA transfers the land sale for $1.00 by the use of quit claim deeds which includes the covenants attached to the project, the quit claim deed being part of the development agreement. Tom St. Hilaire made a motion adopting the resolution relating to the modification, by the Housing and Redevelopment Authority in and for the City of Monticello, of the Redevelopment Plan relating to Redevelopment Project No. 1, the modification of the Tax Increment Financing Plane relating to Tax Increment Flancing Districts Nos. 1-1 through 1-8 and the approval and adoption of the Tax Increment Financing Plan relating to Tax Increment Financing District No. 1-9 (Tapper, Inc.). The motion was seconded by Son Smith, and with no further discussion passed 4-0. The motion passed because the project was consist with HRA policy considerations 1, 2, 3 and B; the Planning Commission approved the finance plan, as the project was consistent with the City's Comprehensive Plan, and the company and owners demonstrate high quality, are a growing, well-managed company, and interested in the community. The City Council is to call a public hearing for February 26, 1990 for the adoption of the said TIF Plan relating to TIF District No. 1-9. 4. CONSIDERATION OF ADDITIONAL INFORMATION ON TAX INCREMENT FINANCE PLAN RELATING TO TAX INCREMENT FINANCE DISTRICT NO. 1-9. (MARTIE FARM SERVICE). On January 22, 1990, the City Council held a public hearing for the TIF Plan relating to TIF District No. 1-9 (Martie Farm Service) which was opened and closed without public comment. The City Council dented use of TIP for the Martis project based on setting a precedence for direct use of TIF assistance to competitive retail businesses. The Council was unclear of the nature of the company's business HRA Minutes 2/7/90 Page 3 4. CONTINUED. and was unable to obtain sufficient clarifcati onfrom city staff or BDS, Inc. with the absent of the developer. Upon the advise of Mr. Pat Pelstring, it was recommended that Mr. Martie receive support from the HRA prior to Council reconsideration of the matter. Mr. Martie apologized for not being at the Council meeting as this was not encouraged by city staff. because of the past historical TIF adoption....: process by -the Council. The HRA' members quest lend their role and function in relationship to.the City Council as recent BRA recommendations for use of TIF have been reversed by the Council without regard. to the facts. In brief summary, Mr. Pat.,Pelstring defined the HRA role as the working body for the use of TIF and the City . . Council role as the issuance for the bonds, as per statutory. Also. Roropchak mentioned the RRA has TIF poll -cies which have not been adopted by the City Council nor does the Council have it's own TIF policies. Ben Smith made a motion stating the HRA vholeh eartedly supports the Martie Farm Project and the TIF Plan as drafted by Business Development Services, Inc. The HRA approved the use of TIF because v> the project is consistent with HRA policy considerations 1, 2, 3, and S; the project increases and retains local employment= the project increases the local tax base{ the project encourages local business retention and expansion; and the addition of the agricultural warehouse and the level of TL F assistance provided for this project were negotiating tools used by the HRA as suggested by BUS, Inc., to encourage consistency of the HRA policy and was not to encourage a larger development. The motion further requested that the City Council reconsider the adoption of the resolution for the TIF Plan relating to TIP District No. 1-9 because of the lack of information relating to the nature of the Martio Farm Service businees. Also. Council is encouraged to visit their current business located on South Highway 25. The motion was seconded by Everette Ellison and with no further discussion passed 4-0. Additionally, the HRA requested a letter be writton and mailed to the City Council members suggesting the Council consider a joint meeting with the HRA to define the Council's role and the HRA'[ role in relationship to the Tax Increment Financing process; secondly, that the Council consider tabling an agenda item which may be unclear or inconsistent witty NRA policy to allow further discussion or clarification of the project outside the reales of the public; and thirdly. that tiro City Council consider adoption of the NRA Tax Increment Financing policies or create and adopt joint Tax Increment Finance policies. Mr. Pelstring expressed his willingness to be present at this meeting, preferably prior to a Council meeting. Lovell Schrupp now in attendance and Everette Ellison no longer in attendance. r HRA Minutes - 2/7/90 Page 4 5. CONSIDERATION TO ADOPT THE CERTIFICATE OF COMPLETION AND RELEASE OF FOREITURE FOR THE DEVELOPMENT AGREEMENT BETWEEN THE HOUSING AND REDEVELOPMENT AUTHROITY AND NORTHERN STATES POWER COMPANY. Ben Smith made a motion adopting the certificate of completion and release of forfeiture for the Development Agreement between the Housing and Redevelopment Authority and Northern States Power Company. Tom St. Hilaire seconded the motion and with no further discussion the motion passed 4-0. The motion was adopted because the NSP district service center constructed in Oakwood Industrial Park was completed and the occupancy permit issued by the City Building Official in accordance with the project development agreement. 6. CONSIDERATION TO SET A SPECIAL HRA MEETING FOR THE PUBLIC HEARING AND ADOPTION OF THE TAX INCREMENT FINANCE PLAN RELATING TO TAX INCREMENT DISTRICT NO. 1-10. (REMMELE ENGINEERING, INC.) o The HRA members considered setting a special meeting of February 21 for the public hearing and adoption of the TIF Plan relating to TIF District No. 1-10, however, due to scheduled vacations a quorm would not be present. The City has offered Remmole Engineoring two options of financing: 1) Up -front assistance, $185,000 for land aqulsition, site development, on-site utilities and parking and landscaping costa. 2) Pay-as-you-go assistance, $320.000. The public hearing held by the HRA is for the disposition of lands and not for the adoption of the TIF Plan, therefore, the HRA can hold the public hearing at their next regular meeting in March which still maintains the calendar schedule as presented to Remmclo. HRA member Tom St. Hilaire then made a motion adopting a resolution in support of or an inducement of the Tax Increment Finance Plan relating to Tax Increment Finance District No. 1-10. Motion was contingent upon no public comment or opposition at the public hearing. The motion was seconded by Ben Smith and the NRA members wore in agreement that staff do whatever It takes to have Remmelo Engineering locate in Monticello. The motion passed 4-0. NRA Mlnnrs?s - 2./7/90 Page 5 v 7. CONSIDERATION OF AN UPDATE ON THE DAVID FICEK AND K -HART PROJECTS. Koropchak reported that she had been in attendance at the meeting held between developer, David Ficek, and the owners of the proposed development areas. The majority of the property owners were not in favor of the project because the project would create greater density. Mr. Ficek was encouraged by a couple of property owners suggesting to consider the westerly portion of the proposed development only, therefore, eliminating the majority of the opposition from the Phase A development. These owners stepped forward after the meeting. Mr. Ficek was unaware of the cost to relocate the gas tank in the Phase B area which makes the project undoable or not cost effective. Mr. Ficek was going to rethink and rerun project numbers on the Phase A area at the suggested smaller development and contact my office on Monday. Koropchak has not received a call and has been unable to reach him. Jeff O'Neill updated the HRA on the City proposed TIF budget for the Lincoln Companies, K -Hart project. The total up -front TIP expense is approximately $561,000 inclusive of soft coats, etc. The Lincoln Companies costs. to approximately $202,000 of which a portion is assessed or deferred assessments. The City anticipates recovery of approximately $404,000 from land sales of property acquired for project and from deferred assessments. The HRA commented on the increased TIP budget from the original meeting with the Lincoln Companies and yet the City has received no written commitment or guarantee of intent to develop from the developers. Tom St. Hilaire made a motion restating the HAA position, the HRA recommends no use of Tax Increment Financing for the Lincoln Companies proposed development. The motion was seconded by Lowell Schrupp and passed 4-0. S. CONSIDERATION TO REVIEW AND ADOPT 1990 HRA COALS. Staff has not had time to draft HRA goals for the HRA members to review and adopt. Mr. Wolfstellor will provide a written year end report of the TIP Districts in March. 9. OTHER BUSINESS. None. 10. ADJOURNMENT. The HRA meeting adjourned at 9:40 PM. C9-� \<Cl 0 6.5�...9�. 011ie Koropchak, HRA Executive Secretary HRA Agenda - 3/7/90 3. PUBLIC HEARING FOR THE DISPOSITION OF LAND RELATING TO THE TAE INCREMENT FINANCE PLAN FOR TAX INCREMENT DISTRICT NO. 1-10. A. REFERENCE AND BACKGROUND. The public hearing may be opened for public oral or written comment on the disposition of lands for the Remmele Engineering, Inc. project. Said public hearing notice having appeared in the local newspaper for two weeks describing the said lands. With the assumptions of no public comments, the public hearing may be closed. Upon the advice of Mr. Pelstrtng, it has been recommended the HRA adopt the resolution for the modification of the Redevelopment Project Plan No. 1, and for the approval and adoption of the Tax Increment Finance Plan relating to Tax Increment Finance District No. 1-10. This recommendat ion, meets technical statutory requirements and replaces the adopted• support of or inducement of the TIF Plan by the HRA in February. Remmele Engineering, Inc. is a supplier of high quality, techologically advanced services in the areas of: 1) contract fabricating, machining, and assembly; 2) designing and building custom equipment for automating or mechanizing a variety of manufacturing processes; and 3) fabricating and building machinery designed by customers where it fits their manufacturing capabilities. Customers for all Remmele Engineering services consist primarily of manufacturing industries. Remmele Engineering currently has 400 employees located In four planta. Two plants are located In Big Lake and two planta are located in St. Paul. Based upon the long term needs of the company, the site must be able to accommodate future expansion of a facility up to 60,000 aq ft. The Initial plant will be 23,333 eq ft with two planned expansions. Intital employment will be 50 skilled labor jobs. Site location is Lot 6, Block 1, Oakwood Industrial Park, 6.58 acres; vacated Fallon Avenue, .82 acres; and Boyle property, 2. acres for a total of 9.4 acres. Additionally, Rammole Engineering will purchase an approximate .92 acres and dead to the City for realignment of Fallon Avenue. Plans call for the City to acquire a small triangle piece of Boyle property south of Chelsea Road to complete the realignment of Fallon Avenue (or Remmele may purchase the property and sell it to the City). On March 6, the Planning Commission will hold a public hearing for the preliminary plot subdivision request to roplat two exfstinR industrial platted lots into plotted lots and outlets. V HRA Agenda - 3/7/90 3. CONTINUED. Assumption is the request will be granted by the Planning Commission contingent upon land acquisition by the developer. On March 12, the City Council will open the public hearing for the TIF Plan and close the'public hearing on March 16, thereafter, adopting the TIF Plan relating to TIF District No. 1-10. The land must be acquired prior to final plat subdivision request being granted to allow for the project to proceed. The building permit being issued after adoption of the TIF Plan by the Council. The TIF Plan relating to TIF Plan No. 1-10 is aveilab le in complete form for review at the City Hall. A portion of the plan is included as your Supporting Data. The total Phase I TIF budget is $260,000 (land acquisition, on-site uti lties/ grading/ landscaping, $185,000 of which $65,000 is from HRA excess funds). Remaining costs are soft costs, capitalized interest, etc. Representatives) from Remmele Engineering will be present at the March 7 HRA meeting. B. ALTERNATIVE ACTION. 1. To adopt the resolution relating to the modification. by the HRA in and for the City of Monticello, of the Redevelopment Plan relating to Redevelopment Proj act No. 1. modificiation of the TIP Plans relating to TIP Districts No. 1-1 through 1-9 and the approval and adoption of the TIF Plan relating to TIF District No. 1-10, all Located within Redevelopment Project No. 1. 2. Deny adoption of the above named resolution. 3. Table adoption of the above named resolution. C. RECOMMENDATION. Recommendation will be given at the HRA meeting by Business Development Services, Inc. Recommendation may be to adopt the TIF Plan contingent upon the land acquisition or may be to table the adoption of the TIP Plan until lend is acquired and final plat request is grantod. D. SUPPORTING DATA. 1. Public Hearing Notice 2. Copy of a portion of the TIP Plan 3. Copy of the resolution. V Nom. of PWA /Met 9 CITY OF MONTICELLO HOLISM AND REDEVELOPMENT AUTHORITY COUNTY OF WRIGHT STATE OF kWOg 0TA NOTICE IS HEREBY GIVEN that the Housing end Redevelopnartt Authority (the "Authority"I of the City of Monticello. County of Wright. State of Minnesota, wW hold a public hearing March 7, 1990, at approximately 7 p.m.. at City Hell, Monticello, MMhneeuta, relating to the proposed acquisition and dkpoaltlon of W operty as authorised in the Tam Increment Financkq Plan for Tao Incrernent Financkq Dielrkt No. 1.10. The property proposed for acquisition end su)seouent disposition within Tom Increment Financ- Ing District No. 1-10 is as follows: Legsi Description Lot S, Block 1, Oakwood Industrial park erxordkhp to the recorded plot thereof, Wright County. wrtneeots. The East 33.00 feet of mak! Oakwood Industrial Park lying north of the eestertr ertenNon of the north tns of Chelsea Road of acid Oakwood IndwtrlN Park, eakt Etat 33.00 feel shown es e Township Road. That pin of the Northwest Quarter of Section 13, Township 121, Range 29, Wright County, Mfr.asote, lying south of the aoutharty nghtbf-wsv Wise of Interstate flighwry 1.91, north of Chaleae Road anti Mrro northwest of a line distant 80.00 fast northwest of end parallel with a urs des rib. ad as fotbws: Beginning at a point on the southerly rightof-way Line of Interstate Highway 1.91 distant 110.00 feet southeast from the west Ilea of said Northwest Quarter es measured abrnp said southerly rt'Whtg1-wear Line; [Noce wuMwesteny, to ■ paint oro tin north ills o/ ChNama Road distant 180,00 fset southeast from amid weal line of the Northwest. Ouanar es .—.ad along said north line pt. Chains Road and said line there lorminsting. Map. 22, Merch 1, 19901 J BOUNDARY MAP OF TAX INCREMENT FINANCING DISTRICT NO. 1-10 AS ESTABLISHED MARCH 12, 1990 sr.ar EXHIBIT XI -A V4 �V4 �TBX Increment-=Pina�ciriet<DistrictzNoi�1=10�.�;J (As adopted March 12, 1990) a BODGsi'_ �, PHASE I PHASE II Land Acquisition $120,000 0 On -Site Utilities/Grading/ 65,000 0 Landscaping Public Improvements 0 $ 55,000 Soils Corrections 0 0 Subtotal $185,000 $ 55,000 Contingency 0 0 Administration 15,000 10,000 Professional Services 10,000 5,000 Subtotal $210,000 S 70,000 Capitalized Interest 47,000 14,000 Discount 3,000 11000 $260,000 $ 85,000 It is anticipated that Phase I will proceed at the commencement of the project and Phase II will proceed as additional increment becomes available through future development. (As adopted November, 1982) Subsection 1.11. Land Use. All new and/or existing development on land identified on Exhibits I -C through I -P as *property to be acquired" or "possible acquisition" will be subject to the following uses and requirements: 1. Uses Permitted in Designated Areas. a. Industrial --All permitted, accessory and conditional uses as specified in Chapters 15 and 16, Monticello Zoning Ordinance, relating to I-1 (Light Industry) and I-2 (Heavy Industry) sones. Planned Unit Developments, where applicable, will be considered. b. HousinalResidential--All permitted, accessory and con- ditional uses as specified in Chapters 8 and 10, Monticello Zoning Ordinace, relating to R-3 (Medium Density Residential) and R -B (Residential -Business) zonee. Planned Unit Developments, where feasible, will be encouraged. c. Downtown/Commercial--All permitted, accessory, and con- ditional uses in accordance with the provisions governing all •B• sones and including R -B, providing however that any commercial development in an R -B sone shall be coordinated with the goals and objectives of the Housing Plan. Planned Unit Developments, especially in the 8-3 sone (Highway Business), will be encouraged. I-28 SECTION XI TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 1-10 Subsection 11.1. Statement of Oblectivea. See Subsection 1.4 of the Redevelopment Plan. Subsection 11.2. The Redevelopment Plan. See Section I, Subsections 1.1 through 1.20. Subsection 11.3. Description of the Project. The project, located within Tax Increment Financing District No. 1-10, consists of the construction of a 25,000 square foot office/ production facility. This facility is to be constructed in the summer of 1990, and completed by December 31, 1990. It is anticipated that 40 additional full-time positions will be created as a result of this construction. Subsection 11.4. Parcels to be Included in Tax Increment Pinancinq District No. 1-10. The following property is located in the City of Monticello, County of Wright, State of Minnesota. Leoal Description (As adopted March 12, 1990) Lot 6, Block 1, Oakwood Industrial Park according to the recorded plat thereof; Wright County, Minnesota. The East 33.00 feet of said Oakwood Industrial Park lying north of the easterly extension of the north line of Chelsea Road of said Oakwood Industrial Park, said East 33.000 feet shown as Township Road. That part of the Northwest Quarter of Section 13, Township 121, Range 25, Wright County, Minnesota, lying south of the southerly right-of-way line of Interstate Highway 1-94, north of Chelsea Road and lying northwest of a line distant 50.00 feet northwest of and parallel with a line described as followas Beginningg at e point on the southerly right-of-way line of Interstate Bighway I-94 distant 410.00 feet southeast from the west line of said Northwest Quarter as measured along said southerly right-of-way liner thence southwesterly to a point on the north line of Chelsea Road distant 180.00 feet southeast from said west line of the Northwest Quarter as measured along said north line of Chelsea Road and said line there terminating. Subsection U.S. Parcels in Acouiaition. The Authority intends to acquire the property 1fs4ea in Subsection 11.4, which property is located within Tax Increment Pinancing District No. 1-10. XI -1 Properties identified for acquisition will be acquired either by the City or the Authority in order to accomplish public improvements listed in Subsection 1.9 of the Redevelopment Plan hereof. Subsection 11.6. Development Activity in Tax Increment Financinq District No. 1-10 for Which Contracts will be Signed. The following contract(s) will be entered into by the Housing and Redevelopment Authority and the person(s) named below: Prior to the certification of Tax Increment Financing District No. 1-10, a Development and Assessment Agreement will be executed between the Housing and Redevelopment Authority of Monticello and Remmele Engineering, Inc. Subsection 11.7. Other Specific Development Fxpected to Occur within Redevelopment Project No. 1. (As specific development is expected to occur, it will be inserted into this Subsection.) Subsection 11.8. Estimated Public Improvement Costa and Supportive Data. See Subsection 1.10 of the Redevelopment Plan for estimated costs associated with Redevelopment Project No. 1. Subsection 11.9. Sources of Revenue. Public improvement costs, and other costs outlined in Subsection 1.10 of the Redevelopment Plan will be financed through the annual collection of tax increments. Subsection 11.10. Oriainal Tax Capacity. Pursuant to Section 469.177, Subd. 1, of the Tax Increment Financing Act, the original tax capacity value for Tax Increment Financing District No. 1-10 is estimated to be $2,290, based on the tax capacity value of all taxable real property within Tax Increment Financing District No. 1-10. Pursuant to Section 469.177, Subds. 1 and 4, of the Tax Increment Financing Act, the County Auditor of Wright County (the "County Auditor') shall certify in each year the amount by which the original tax capacity value has increased or decreased as a result in a change in tax-exempt property within Tax Increment Financing District No. 1-10, reduction or enlarge- ment of Tax Increment Financing District No. 1-10 or changes in connection with previously issued building permits. In any year in which the current tax capacity value of Tax Increment Financing District No. 1-10 declines below the original tax capacity value, no tax capacity value will be captured and no tax increment will be payable to the Authority. XI -2 Subsection 11.11. Estimated Captured Tax Capacity Value. Pursuant to Section 469.175, Subd. 1, and Section 469.177, Subd. 2, of the Tax Increment Financing Act, the estimated captured tax capacity value in Tax Increment Financing District No. 1-10 at final completion will approximate $41,710. This estimated annual captured capacity value is determined in the following manner: Estimated Tax Capacity Value at Final Completion $44,000 Original Tax Capacity 2,290 Captured Tax Capacity Value $41,710 *Please refer to Exhibit X -B for the year-to-year expected tax increment for Tax Increment Financing District No. 1-10. Subsection 11.12. Tyne of Tax Increment Financing District. Tax Increment Financing District No. 1-10, is pursuant to Section 469.174, Subd. 10(a)(2) a Redevelopment District as described below: 0170% of theparcels in the area of Tax Increment Financing District No. 1-10 are occupied by buildings, streets, utilities, or other improvements and 20% of the buildings or improvements are structurally substandard and an additional 301 of the buildings or improvements are found to require substantial renovation or clearance in order to remove such existing conditions as: inadequate street layout, incompatible uses or land use relationships, overcrowding of buildings on the land, excessive dwelling unit density, obsolete buildings but suitable for improvement or conversion, or other identified hazards to the health, safety and general well-being of the community10 Subsection 11.13. Duration of Tax Increment Pinancinq District No. 1-10, pursuant to Section 469.176, Subd. 1, of the Tax Increment Financing Act, the duration of Tax Increment Financing District No. 1-10 will be twenty-five (25) years from the approval of the Tax Increment Financing Plan. The first tax increment is expected to be received in 1992'. Subsection 11.14. Progosed Develooment Analysis. Pursuant to Minnesota Statute;, Section 469.175, Subd. 1(7), specific findings and analysis relating to the proposed development in Tax Increment Financing District No. 1-10. Additional relevant documentation relating to the findings and analysis will be on file and available for review in the City Administrator's office. XI -3 Subsection 11.15. Estimated Impact on Other Taxina Jurisdictions. Test No. 1 y`e� The estimated impart on other taxing jurisdictions assumes construction wouldhhave occurred without the creation of Tax Increment Financing District No. 1-10. If the construction is a result of Tax Increment Financing, the impact is $0 to other entities. Test No. 2 Notwithstanding the fact that the fiscal impact on the other taxing jurisdictions is $0 due to the fact that the financing would not have occurred without the assistance of the City, the following estimated impact of Tax Inrement Financing District No. 1-10 would be as follows if Test No 1 (the *but for' test) was not met: IMPACT ON TAX BASE ORIGINAL FUTURE CAPTURED NET TAX NEP TAX NET TAX CAPACITY CAPACITY CAPACITY DISTRICT PAYABLE PAYABLE PAYABLE % OF ENTITY TAX BASE 1990 1990 1990 EJTTK Wright Co. $42,798,916 $2,290 $44,000 $41,710 .097% City of Monticello 15,874,595 $2,290 $44,000 $41,710 .2631 I.S.D. No. 882 18,312,425 $2,290 $44,000 $41,710 .2281 Hospital District 22,886,660 $2,290 $44,000 $41,710 .182 1 IMPACT ON TAX CAPACITY MILL RATES NET TAX CAPACITY POTENTIAL ENTITY RATE 1990 TAXES Wright Co. 21.314 $ 8,690 City of Monticello 16.187 6,752 I.S.D. No. 862 40.861 17,043 Hospital District_172.81' 1,:173 033858 *Please refer to Exhibit XI -B for the year-to-year expected tax increment for Tax Increment Financing District No. 1-10. �/ XI -4 I A. Future Tax Capacity. The estimated future tax capacity of Tax Increment Financing District No. 1-10 at final completion as determined by the City Assessor is $44,000 payable 1992. Please refer to Exhibit XI -B for the year-to-year expected tax increment from Tax Increment Financing District No. 1-10. B. Proiected Timing. The payment of the first full tax increment from Tax Increment Financing District No. 1-10 will be received by the Authority in 1992. C. Oriqinal Tax Capacity. The County Assessor's records show the original tax capacity of Tax Increment Financing District No. 1-10 to be $2,290 for taxes in 1969 and payable in 1990. D. Cross Tax Capacity Rate. The gross tax capacity rate is 81.175 percent. E. Tax Increment. Total tax increment at the completion of all redevelopment activity has been calculated assuming a static gross tax capacity rate and a valuation increased by sero percent (061 compounded annually. P. Capital Expenditures. Capital expenditures are a summary of the Items associated with the public improvement costs set forth in Subsection 10.8 and are to be financed from the pro- ceeds of the Bonds and tax increment revenue. Subsection 11.17. Estimated Amount of fionded Indebtedness. It is anticipated that $260,000 of bonded Indebtedness will be incurred with respect to this portion of the Redevelopment Project and an additional $85,000 will be incurred when additional increment is available. Subsection 11.18. Tax Increment Pinancina Account for Tax Ingrement Pinancinq District No 1-10. The tax increment received with respect to Tax Increment Financing Dietrict No. 1-10 will be submitted by the Authority to the City and segregated by the Authority in a special account or accounts (the -Tax Increment Account-) on its official books and records br as otherwise established by resolution of the City to be held by a trustee or trustees for the benefit of holders of the Bonds. Subsection 11.19. Modification of Tax ;ncrement teen Qiatrict No, 1-10. As oZ March 12, 1990, there have no modifications made to Tax Increment Financing District No. 1-10. XI -5 EXPECTED YEAR-TO-YEAR TAX INCREMENTS RELATED TO TAX INCREMENT L PINANCINO DISTRICT NO. 1-10 AND TAX CAPACITY ANALYSIS YEAR BASE TC ADJ FACTOR ADJ BASE FUT TC NET CAP TC 1990 TCR ANNUAL TI $812,594 EXHIBIT XI -B $44,000 89/90 $2,290 1.00 0.81175 90/91 $2,290 $41,710 91/92 $2,290 $41,710 $33,858 92/93 $2,290 $41,710 $33,858 93/94 $2,290 $41,710 $33,858 94/95 $2,290 $41,710 $33,858 95/98 $2,290 $41,710 $33,858 98/97 $2,290 $41,710 $33,858 97/98 $2,290 $41,710 $33,858 98/99 $2,290 $41,710 $33,858 99/2000 $2,290 $41,710 $33,858 2000/2001 $2,290 $41,710 $33,858 2001/2002 $2,290 $41,710 $33,858 2002/2003 $2,290 $41,710 $33,858 2003/2004 $2,290 $41,710 $33,858 2004/2005 $2,290 $41,710 $33,858 2005/2008 $2,290 $41,710 $33,858 v� 2008/2007 $2,290 $41,710 $33,858 2007/2008 $2,290 $41,710 $33,858 2008/2009 $2,290 $41,710 $33,858 2009/2010 $2,290 $41,710 $33,858 2010/2011 $2,290 $41,710 $33,858 2001/2012 $2,290 $41,710 $33,858 2012/2013 $2,290 $41,710 $33,858 2013/20/4 $2,290 $41,710 $33,858 2014/2015 $2,290 $41,710 $33,858 $812,594 EXHIBIT XI -B V DISTRICT CERTIFICATION PORM Date Prepareds March 12, 1990 Name of District or Modification: Tax Increment Financina District No. 1-10 Date of City Council Approval: March 12. 1990 REDEVELOPMENT DISTRICT CERTIFICATION At the time of district creation or modification, the following conditions apply: The City Council resolution contained the finding that the area was blighted. Other significant findings were contained in the resolution: 706 of the parcels in the project were improved and more than 506 of the buildings were structurally substandard to a degree requiring substantial renovation or clearance. 706 of the parcels in the project were improved and 206 of the buildings and improvements were structurally substandard and an additional 301 of the buildings and improvements required substantial renovation or clearance to remove blighting conditions. The property consisted of vacannt, unused, underused, inappropriately used or infrequently used railyards, rail storage facilities or excessive or vacated railroad rights-of-way. Supportlnq documentation on file: X City Council Resolution X Land Use Plan Map Soils Correction Data Photographs Others This Form Prepared bys Business Development Services, Inc. Title X Project Plan Objectives Building Condition Data X Pield Notes Original Building Condition Data Collected bys N/A Title Documentation in support of District Certification is on file at the City offices. EXHIBIT XI -C r_ 7 V APPENDIX B CHRONOLOGY OF RESOLUTIONS ESTABLISHING THE DEVELOPMENT PROGRAM, THE DEVELOPMENT DISTRICT, THE TAX INCREMENT FINANCING PLANS, AND THE TAX INCREMENT FINANCING DISTRICTS Date Action (Development District No. 1/Tax Increment Financing District No. 1-10). February 9, 1990 Letters sent to Wright County, Public School District No. 882, and Hospital District. February 20. 1990 Notice of HRA Public Rearing sent to local newspaper. February 22, 1990 Notice of HRA Public Hearing is published in the local newspaper, calling for a Public Hearing on March 7, 1990. February 26, 1990 Resolution of the City Council calling for a Public Hearing. February 27, 1990 Notice of Public Hearing sent to local newspaper. March 1, 1990 Notice of Public Hearing is published in the local paper, calling for a public hearing on March 12, 1990. March 1, 1990 Notice of RRA Public Hearing is published in the local newspaper, calling for a Public Hearing on March 7, 1990. -1- Date Action March 6. 1990 Resolution of the Planning Commission finding the plans to be in conformance — with the Comprehensive Plan of the City. March 7, 1990 HRA Public Hearing. March 12, 1990 Public hearing was held. March 12, 1990 Resolution of the City Council establishing + Development District No. 1 and Tax Increment Financing District No. 1-1 and adopting the Development Program and Tax Increment Financing Plan relating thereto. -2- Councilmember introduced the following resolution, the reading of which was dispensed with by unanimous ` consent, and moved its adoptions HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO WRIGHT COUNTY STATE OF MINNESOTA RESOLUTION NO. A RESOLUTION RELATING TO THE MODIFICATION, BY THE HOUSING AND REDEVELOMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO, OF THE REDEVELOPMENT PLAN RELATING TO REDEVELOPMENT PROJECT NO. 1, THE MODIFICATION OF THE TAX INCREMENT FINANCING PLANS RELATING TO TAX INCREMENT FINANCING DISTRICTS NOS. 1-1 THROUGH 1-9 AND THE APPROVAL AND ADOPTION OF THE TAX INCREMENT FINANCING PLAN RELATING TO TAX INCREMENT FINANCING DISTRICT NO. 1-10, ALL LOCATED WITHIN REDEVELOPMENT PROJECT NO. 1. BE, IT RESOLVED by the Commissioners (the "Commissioners") of the Housing and Redevelopment Authority (the "Authority") in and for the City of Monticello, Minnesota (the "City"), as follows: Section 1. Recitals. 1.01. It has been proposed that the Authority modify, by increased project costs, Redevelopment Project No. 1, pursuant to and in accordance with Minnesota Statutes, Sections 469.001 to 469.047, inclusive, as amended. It has been further proposed that the Authority modify, by increased project coats, the Tax Increment Financing Plane relating to Tax Increment Financing Districts Nos. 1-1 through 1-9 and establish Tax Increment Financing District No. 1-10 and approve and adopt the Tax Increment Financing Plans relating thereto, all located within Redevelopment Project No. 1, pursuant to and in accordance with Minnesota Statutes, Sections 469.174 to 469.179, inclusive, as amended. 7 1.02. The Authority has investigated the facts and has caused to be prepared a proposed Modified Redevelopment Plan (the "Modified Redevelopment Plan") for Redevelopment Project No. 1, defining more precisely the increased project costs to be made to Redevelopment Project No. 1, the proposed Modified Tax Increment Financing Plans for Tax Increment Financing Districts Nos. 1-1 through 1-9 and Tax Increment Financing Plan (the "Tax Increment Financing Plan') for Tax Increment Financing District No. 1-10 (collectively referred to as the 'Plans'). 1.03. The Authority and the City have performed all actions required by law to be performed prior to the modification of Redevelopment Project No. 1, the modification of Tax Increment Financing Districts Nos. 1-1 through 1-9 and the establishment of Tax Increment Financing District No. 1-10 and the adoption of the Plans relating thereto. 1.04. The Authority hereby determines that it is necessary and in the beat interest of the City at this time to modify Redevelopment Project No. 1, to modify Tax Increment Financing Districts Nos. 1-1 through 1-9 and to establish Tax Increment Financing District No. 1-10 and approve the Plans relating thereto, and to request that the City Council (the *Council*) hold a public hearing relating to the above -stated matters. Section 2. Approval of the Modified Redevelopment Plan for Redevelopment Project No. 1. 2.01. Subject to the finding, determination, and approval of the Modified Redevelopment Plan for Redevelopment Project No. 1 by the City Council of the City, the Modified Redevelopment Plan for Redevelopment Project No. 1 is hereby approved by the Commissioners of the Authority. The increased project costs shall be described in the Modified Redevelopment Plan for Redevelopment Project No. 1 approved in Section 4 hereof. Section 3. Approval of the Tax Increment Pinancinq Plans for Tax Increment Pinancinq Districts No. 1-1 throuqh 1-10. 3.01. Subject to the finding, determination, and approval of the Modified Tax Increment Financing Plana for Tax Increment Financing Districts Nos. 1-1 through 1-9 and Tax Increment Financing Plan for Tax Increment Pinancinq District No. 1-10 by the Council of the City, the Tax Increment Financing Plans for Tax Increment Financing Districts Nos. 1-1 through 1-10 are hereby approved by the Commissioners of the Authority. -2- Section 4. Approval of the Respective Plans. 4.01. The Plans presented to the Authority on this date, are hereby approved and adopted by the Authority and shall be for- warded to the Council with the request that the Council hold a public hearing relating to the adoption of the Plans for Redevelopment Project No. 1 and Tax Increment Financing Districts Nos. 1-1 through 1-10. Section 5. Disposition of Public Lands. 5.01. The Authority held a public hearing, as of this date, regarding the disposition of public lands. The Authority hereby verifies that said public hearing was held and duly authorises the City Attorney and City staff to proceed with the implementation of the necessary documentation relating to said disposition of public lands. Section 6. Filinq of Plans. 6.01. The Authority shall cause the Plans, all as approved and adopted, to be filed with the Office of the Minnesota Department of Trade and Economic Development. Dated March 7, 1990 Cha1rm80 Atteatt Executive Director (SEAL) C -3- HRA Agenda - 3/7/90 4. CONSIDERATION TO APPROVE THE CERTIFICATE OF COMPLETION AND RELEASE OF FOREFEITURE FOR THE BROADWAY SQUARE LIMITED PARTNERSHIP. REFERENCE AND BACKGROUND. The 28 -unit elderly subsidized housing project constructed by Broadway Square Limited Partnership has been completed and the occupancy permit issued by the City Building Official. The HRA participated with the use of TIF for acquisition of under-utllizled property, demolition, relocation expenses, and underground tank removal; the property sold to Broadway Square Limited Partnership for the constructed FmHA project. The HRA should consider approving the Certificate of Completion and Release of Forefe lture within the Development Agreement between the HRA and the Broadway Square Limited Partnerhip. The said approved document will then meet Development Agreement guidelines and will be recorded at the County Recorder Office. ALTERNATIVE ACTION. 1. To approve the Certificate of Completion and Release of Forefeiture. 2. To deny approval of the Certification of Completion and Release of Forefaiturs. RECOMMENDATION. Recommendation is to approve the Certificate of Completion and Release of Forefaiture because of the project has been completed within the guidelines of the Development Agreement and the occupancy permit has been issued. Thereafter will said document be recorded at the County. SUPPORTING DATA. Copy of the Certificate of Completion and Release of Forefeitura. SCHEDULE E Certificate of ComDletion and Release of Forfeiture U 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) 461122 and 458235 , respectively, has conveyed to Broadway Square Limited Partnership, a Minnesota limited partnership (the "Grantee"), the following described land in the County of Wright and State of Minnesota, to -wit: Lot l exc Nly 30 ft Block 51 Nly 50 ft of Lots 1 & 2 & Nly 50 ft of W 24 ft of Lt 5. Also S 15 ft of Lot 15. Block 51 Lt 2 exc Nly 30 ft do Lt 3 exc Nly SO ft of W 24 ft h W 7 1/2 ft of Lot 4. Block 51 E 25 1/2 ft of Lot 4 & W 5 1/2 ft Lot 5, Block 51 Lot 5, Block 51, exc W 5 1/2 ft (50M1s-82) Original Plat An easement for building maintenance over and across that part of Lot.. 5, Block 51, In the City of Monticello, described as follows: Commencing at the Northeasterly most corner of said Lot 51 thence Northwesterly along the Northerly line of Lot 5 a distance of 10 feet; thence Southwesterly and parallel to the Easterly line of Lot 5 to the Southerly line of Lot 5; thence Southeasterly along the Southerly line of Lot 5 to the Southeasterly most corner of Lot 5; thence Northeasterly along the Easterly line of Lot 5 to the place of beginning and there terminating. and 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 I and 2 of said Deeds and WHEREAS, said Grantee has to the present date performed sold covenants and conditions Insofar as It is able in a manner deemed sufficient by the Grantor to permit the execution and recording of this cortlfication; 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 j performed by the Grantee therein and 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 lend described heroin, and the County Recorder or the Registrar of Titles In -and for the County of E-1 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 Sections 3 and 4 of said Deed shall remain in full force and effect. Dated; '19—. THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FORTHE CITY OF MONTICELLO, MINNESOTA IN THE PRESENCE OF: By STATE OF MINNESOTA ) ) es. COUNTY OF WRIGHT ) Its On this day of , 19_, before me, a Notary Public W 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 Grantor named In the foregoing instrument; that the seal affixed to said Instrument to the corporate seal of said Grantor; that said Instrument was signed and sealed in behalf of said Grantor by authority of Its Board of Commissioners; and said acknowledged said Instrument to be the free act and deed of said Grantor. V E-2 Notary Public HRA Agenda - 3/7/90 5. CONSIDERATION TO DISCUSS AND ESTABLISH A DATE FOR A JOINT MEETING BETWEEN THE HRA AND THE CITY COUNCIL REGARDING TIF POLICIES. A REFERENCE AND BACKGROUND. Following the February HRA meeting, Koropchak drafted and mailed a letter to the City Council addressing the concerns the HRA had discussed at their meeting with regards to the roles of the HRA and the City Council in relationship to the Tax Increment Finance process. Your Supporting Data includes a copy of that letter. Also, refer to the February HRA minutes under item number four. The City Council had a positive response to the suggestion for a joint meeting. I would suggest the HRA review it's current TIF process including TIP Applications developer's down payment for use of TIF; HRA policy considerations; financing methods available; TIF assistance options; types of businesses: define retail, commercial, and industrials and for consistency of the process. The only action necessary is to consider a date for the joint meeting. Scheduled Council dates: March 12 7:00 PM March 26 April 9 April 23 I 250 East Broadway February 8, 1990 Monticello, MN 55362.9245 Phone: (612) 295.2711 Metro: (611) 333.5739 M� Kmmh Mmo GO C—W Qui Blanijcn F= Far SMd,y An&=i Wanes Smith Dear City Council Member: Ad-� Nick Wdate4e. At the Housing and Redevelopment Authority (HRA) meeting on —A—A— &February 7, 19901 the HRA requested a letter be written and mailed to the D*— City Council meters suggesting the Council consider a joint meeting with O,N the HRA to define the Council's role and the HRA's role in relationship to wwff 106 5;,4 the Tax Increment Financing process; secondly, that the Council consider o N�sw olkw tabling an agenda item which may be unclear or inconsistent with HRA a„y Aide policy to allow further discussion or clarification of the project outside E,,,,,,, Na, the realms of the public; and thirdly, that the City Council consider CC,Ko.ophak adoption of the HRA Tax Increment Financing policies or create and adopt joint Tax Increment Finance policies. Mr. pat Pelstring of Business Development services, Inc., is willing to attend the joint meeting, prior to a council meeting, to assist in the definition of the roles. The HRA encourages the City Council menbers to consider the HRA's suggestions. Respectfully, Cs kt,, ,, 14cn o g �xaxc 011ie Koropchak HRA Executive Director Enclosurest HRA policies OlVng it ccs Council Members 1 pat Pelstring Ricin Wolfsteller Jeff O'Neill I I 250 fast Broadway Monticello, MN 55362.9245 Phone:(612)295.2711 Metro: (612) 333.5739 Nl— Kenncth Mans Cn. C-1 Dan B1anim Fan Fair Shine. Arulerwn Warren Smith Adm n. Rick�Wollsteller A.,a.n, Ad -- C—..' d 1e17 O'Nn11 P.W. W.V. Jahn Simla PkAh- V, W Gary Arulenan raM.,n. N—hv n, alit Karoprhak T0: The Monticello City Council FROM: 011ie Koropchak, HRA Executive Director f DATE: February 8, 1990 At the Monticello Housing and Redevelopment Authority meeting on February 7, the HRA reviewed The Lincoln Ccapanies proposed TIF plan budget. Thereafter, a motion was made and passed by the HRA recommending no use of Tax Increment Financing for The Lincoln Companies proposed development. The reason for the motion is the lack of the developer to demonstrate commitment of the intent to develop. N MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE 1990 MEMBERSHIP NAME Sheldon Johnson IDC Chairperson Donald Smith IDC Vice Chairperson Ronald Hoglund IDC Treasurer Lowell Schrupp Kenneth Maus Monticello Mayor b Dale Lungwitz Arve Grimsmo Jay Morrell Harvey Kendall Dennis Taylor Dale Pogatchnik OCCUPATION ADDRESS Superintendent, District Office School District #882 PO Box 897 Monticello, Ma 55362 Editor/Publisher, PO Box 548 Monticello Times Monticello, Moa 55362 Agency Owner, American Family Ins. Owner, Golden Valley Furniture 204 West 3rd St. PO Box 291 Monticello, M4 55362 PO Box 515 Monticello, Moa 55362 Owner, Maus Foods 508 Highway 25 South Monticello, Ma 55362 President, Wright County State Bank Owner, Peterson - Grimm Funeral Chapel Owner, M 6 P Transport Plant Office Manager, NSP Nuclear Plant Owner, Taylor Land Surveyors, Inc. Loan Officer, lat National Bank 106 Pine Street PO Box 729 Monticello, MN 55362 530 West Broadway Ili Box 815 Monticello, MI 55362 PO Box 477 Monticello, M1 55362 108 Hillcrest Road Monticello, MN 55362 219 West Broadway PO Box 179 Monticello, Moa 55362 707 Pine Street PO Box 239 Monticello, MN 55362 NAME John MdVay Dave Peterson Toa McDermott Chamber Chairperson Bob Dawson Chamber Vice - Chairperson CITY STAFF SUPPORT Rick Wolfsteller Jeff O'Neill 011ie Roropchak IDC Executive Secretary OCCUPATION Sr. Marketing Engineer, NSP Amer, Dave Peterson/ Monticello Ford - Mercury Sales Manager, Dave Peterson/Monticello Ford -Mercury Manager, Johnson's Department Store City Administrator, City of Monticello Assistant Administrator, City of Monticello Economic Developnent Director ADDRESS PO Box 425 Monticello, MN 55362 I-94 6 Hwy. 25 South PO Box 68 Monticello, !Ila 55362 I-94 6 Hwy. 25 South PO Box 68 Monticello, MN 55362 PO Box 598 Monticello, Ma 55362 250 East Broadway PO Box 1147 Monticello, MN 55362 250 Fast Broadway PO Box 1147 Monticello, MN 55362 250 Fast Broadway PO Box 1147 Monticello, MN 55362 1990 MONTICELLO INDUSTRIAL DEVELOW4Df COMMITTEE GOALS L11 A. To host or visit at least 10 new business/industry prospects during 1990. B. To continue working with existing industries in Monticello. 1) To establish Business Retention Survey Team. C. To obtain prospects from existing industries/businesses. D. To attract one or more industries during 1990 that will be placed on the tax rolls of the Monticello coammity. E. To complete the industrial targeted brochure and to review the potential need to revise and update the promotional video tape. F. To continue our study of sewer and water hookup charges and rates with the ultimate goals of recommending to the City Council appropriate changes in order for Monticello to compete with other communities within the state of Minnesota, when recruiting business and industry. G. To make available financial package proposals, either in total or in part, to prospective businesses and industries as prepared by Business Development Services, Inc. o • Tax increment financing • State programs • Federal programs • Greater Monticello Enterprise Fund • Loans and grants from other agencies: Central Minnesota Initiative Fund H. To continue a positive, cooperative working relationship between City staff and the I:rlustrial Development Cortmittee. I. To continue the "Star City" program. J. To make arrangements with a contractor for the construction of e speculative industrial building which has received prior building plan approval. K. To enhance our committee's relationship with personnel of state agencies that are involved with industrial development. 1) 7b host a joint meeting between the IDC officers, the City Mayor, City Administration, Bill Coleman, Harry Roaofelt, Jerry Wenner, or others. Deadline April 1990. L. To continue monthly Industrial Development Committee meetings and to 17 schedule special meotings as needed. M. To analyze and evaluate the annual Industrial Development Committee Banquet. 1) To analyze and evaluate the fall banquet date. 2) To analyze and evaluate the need for local industrial testimonies on the program. 3) To analyze and evaluate the need for local industrial displays at the banquet. N. To continue utilization of the sub -committee structure within the Industrial Development Committee. 1) Recommend for appointment as need be. 0. To spearhead a committee of local interested fliers to continue the preliminary research necessary for the existence of the local airport. P. To hold a joint meeting between the local Minnesota legislators and the IDC. Q. :o continue the public utilities process for Extended Area Service to Monticello. R. To continue the joint meeting between the Planning Commission, the HRA, the IDA, the IDC, and the City Council. Deadline before June 1990. S. To continue p positive relationship with the Chamber of Commerce. T. To establish an annual audit of the IDC financial books by City Administrator Rick Wolfsteller. U. To research the bio -medical waste issue and make a recommendation to the City Council. V. To address and research the industrial park aesthetic value for industrial siting. W. To host an industrial business luncheon, social, or informational moeting. X. To encourage the establishment of a step-by-step basic City ordinance/zoning guideline brochure for industrial development. V 1990 MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE PRELIMINARY PROPOSED BUDGET 1989 AOUAL 1990 PFD OSM BALANCE $20,304.88 $11,903.80 1UNE JE Banquet $ 5,757.00 $ 7,500.00 (75 tickets) (100 tickets) City Contribution $ 5,400.00 (1989) Chamber Contribution $ 2,800.00 Interest $ 722.17 $ 500.00 5OML HOVE1 IE $26,602.05 $28,103.80 v> Salary $12,608.23 $13,119.87 Banquet $ 1,636.70 $ 2,200.00 Appraisal $ 0.00 $ 400.00 Travel Expense $ 18.75 $ 200.00 Prospects $ 245.72 $ 500.00 Memberships 6 Magazine $ 0.00 $ 95.00 Seminars $ 150.00 $ 0.00 Service Charge $ 35.85 $ 40.00 Miscellaneous $ 3.00 $ 11000.00 Video $ 0.00 $ 0.00 Business Retention $ 0.00 $ 200.00 50171E $14,698.25 $18,354.87 BIUNCE $11,903.80 6 9,748.93 1990 MONTICELLO CHAMBER OF COMMERCE BOARD MEMBERS TOM MCDERMOTT CHAIRPERSON PETERSON'S MONTICELLO FORD -MERCURY I-94 AND HIGHWAY 25 295-2056 BOB DAWSON VICE CHAIRPERSON JOHNSON'S DEPARTMENT STORE P 0 BOX 598 (295-2938) LINDA MIELKE PAST CHAIRPERSON SECURITY FINANCIAL BANKING 6 SAVINGS P 0 BOX 70 295-4500 CANDY BENOIT TREASURER COMMUNITY EDUCATION SCHOOL DIST 882 P 0 BOX 897 295-2915 OLLIE KOROPCHAK EXECUTIVE SECRETARY CHAMBER OF COMMERCE P 0 BOX 192 295-2700 b MARN FLICKER BOARD MEMBER, 1 YEAR FLICKER TV 6 APPLIANCE 211 S HIGHWAY 25 295-5122 PEGGY HANAWALT BOARD MEMBER, 2 YEARS MONTICELLO KIDS ARE PEOPLE TOO, INC. 1300 W BROADWAY 295-5508 MARY MICKE BOARD MEMBER, 3 YEARS MONTICELLO TIMES P 0 BOX 548 295-3131 z r A_. CHAMBER GOALS 1990 1 -To increase Chamber of Commerce revenue. 2 -Continue to research and possibly add a chamber director. 3 -To increase Chamber membership by 15%. 4 -To design specific Chamber sub -committees consisting of chamber members other than board members. 5 -To examine the possibilities of returning fireworks to Monticello. M 8 -To establish m advertising and promotions sub-comittee. 7 -To establish a ways and means comittee. b 8 -To makb Chamber activities profitable. 9 -To more clearly define to our members the Chamber of Commerce role in their businesses. 10 -to e qi •�.\: %\ qN - k&,.z S 14 SUPDIARY OF ECONOMIC GROWTH 14— ESTIMATED MARKET VALUE INCREASE 5 NEW/EXPANSION INDUSTRIAL PROJECTS (2 completed) $2,443,000 1 NEW SUBSIDIZED ELDERLY HOUSING PROJECT (completed) 886,590 1 NEW COMMERICAL PROJECT 2,500,000 TOTAL EMV INCREASE March 1990 $5,829,590 JOB INCREASE INDUSTRIAL NET GAIN FROM PREVIOUS YEAR 102 NEW PROJECTED INDUSTRIAL 111 213 FT INDUSTRIAL JOBS NEW PROJECTED CO2CIERCIAL 72 (144 PT) TOTAL JOB INCREASE March 1990 285 FULL TIME BUILDING PERMIT VALUATION INCREASE VALUATION PERMITS INDUSTRIAL $1.318,000 2 COMMERCIAL $ 429,900 23 OTHERS $3.006,500 109 TOTAL INCREASE December 1989 $4,754,400 134 CITY IMPROVEMENTS WATER TOWER 800,000 gals storage INDUSTRIAL PARK STREET OVERLAY 10 -ton all weather roads c CITY RECYCLING PROGRAM HWY 25'•BRIDGE EXPANSION 4 lanes SIGNAL LIGHTS interchange of 1-94 and HWY 25 NEW CITY LOGO INDUSTRIAL MARKETING BROCHURE HEARTLAND EXPRESS 22 passenger bus MODIFIED MONTICELLO REDEVELOPMENT PROJECT PLAN AND BOUNDARIES HIRED BUSINESS DEVELOPMENT SERVICES. INC financial consultants PARK IMRPROVEMENTS TREE PLANTING OTHER STREET IMPROVEMENTS (BREAKDOWN ON FOLLOWING PAGES) C IN 7 u ECONOMIC GROWTH NSP TRAINING CENTER EXPANSION 18,000 sq ft $ 540,000 EMV 1989 NSP SERVICE CENTER 5,544 aq ft $ 195,000 EMV 1989 BROADWAY SQUARE WEST 28 -unit subsidized elderly home$ 886,590 EMV 1989 MARTIE'S FARM SERVICE 9,427 eq ft $ 153,000 EMV 1990 FEB. TAPPER, INC. 27,000 sq ft $ 750,000 EMV 1990 FEB. REMMELE ENGINEERING, INC. 23,333 sq ft $ 805,000 ENV 1990 MARCH THE LINCOLN COMPANIES 86,000 sq ft retail $2,500,000 CITY E.�[V 1990 MARCH TOTAL CITY IMPROVEMENTS $5,829,590 EMV WATER TOWER 800,000 gals storage $1,100,000 CITY BUDGET INDUSTRIAL PARK STREET OVERLAY 10 -ton all weather $ 103,500 CITY/ASSESSED CITY RECYCLING PROGRAM $ 30,000 CITY HEARTLAND EXPRESS 22 passenger bus $ 16,000 CITY HWY 25 BRIDGE EXPANSION 4 lanes $ T MDOT SIGNAL LIGHTS interchange of I-94 and HWY 25 $ T MDOT 122 CITY CITY LOGO plus printing $ 4,000 CITY INDUSTRIAL MARKETING BROCHURE plus printing $ 16,000 CITY PARK IMPROVEMENTS $ CITY TREE PLANTING $ CITY OTHER STREET IMPROVEMENTS $ CITY MODIFIED MONTICELLO REDEV PROJECT PLAN 6 BOUNDARIES $ HRA/CITY BUSINESS DEVELOPMENT SERVICES, INC. (fin consultant)$ HRA OTHER ACTIVITIES IN PROCESS TOWNHOUSE DEVELOPMENT WITHIN WALKING DISTANCE OF SHOPPING AND SERVICES RESEARCH THE POSSIBILITY OF A MUNICIPAL AIRPORT INDUSTRIAL ORDIANCE/ZONING GUIDELINE BROCHURE EXTENDED AREA SERVICE (METRO TELEPHONE) TRAM 250 TORCH RUN MONTICELLO RIVERFEST BED AND BREAKFAST (RENOVATION OF RAND MANSION) OTHER ACTIVITIES COMPLETED JOINT LOCAL GOVERNMENTAL MEETING IDC BANQUET BRE SURVEY AND VISIT HOST/VISIT PROSPECTS (IDC) COMMUNITY BUSINESS EXPO (1989 100 booths C of C) HRA IDC SUBCOMMITTEE BUILDING INSPECTOR, PLANNER IDC/CITY CITY/CHAMBER OF COMMERCE CHAMBER OF COMMERCE/CITY LIONS CLUB PRIVATE June 1989 October 1989 January 1990 ON -001 NG ON-GOING INDUSTRIAL EMPLOYMENT COMPARISON as of January, 1990 NORTHERN STATES POWER COMPANY FULFILLMENT SYSTEMS INC SUNNY FRESH FOODS INC (DIVISION OF CARGILL) FINGERHUT CORPORATION BONDHUS CORPORATION ELECTRO INDUSTRIES ARK INC AUTOMATIC GARAGE DOOR JONES MANUFACTURING INC M & P TRANSPORT INC NSP TRAINING CENTER NAWCO MINNESOTA INC TITAN RECREATIONAL PRODUCTS INC NSP SERVICE CENTER RAINBOW ENTERPRISES INC SMA ELEVATOR CONSTRUCTION INC LARSON MANUFACTURING CLOW STAMPING COMPANY WED PRECISION MACHINING INC TOTALS NET GAIN OR IHSS NUCLEAR POWER PREMIUM REDEMPTIONS EGG PROCESSING DIRECT MAIL - HAND TOOLS LOAD MANAGEMENT CUSTOM DRAPIES GARAGE DOOR PRODUCTS JEWELRY MANUFACTURE. BULK CEMENT LOCAL EMPLOYEE TRAINING WINDOW PRODUCTION TRAILER PRODUCTION DISTRICT OFFICE GENERAL MACHINING SEED ELEVATOR CONST BUILDING SUPPLIES METAL STAMPING WAREHOUSE GENERAL. MACHINING 1988 1989 1990 261 269 271 140 87 120 (+ 100 inhome) 95 150 144 69 90 R5 55 55 75 30 28 38 20 52 44 15 18 16 25 25 25 42 42 40 (expnnsion) 8 11 15 6 12 11 (new) 6 R 10 8 8 8 7 7 - (closed) 7 9 8 3 (new) 825 865 967 -3 +40 +102 MARTIR'S FARM SERVICE INC AGRICULTURAL. PRODUCTION 11 TAPPER INC CARINETARY PRODUCTION 50 REMMELE ENGINEERING INC MACHINE CONTRACTING SO THE LINCOLN COMPANIES COMMERICAL (K -MART) 72 (144 part time) TOTAL. PROJECTED ADDITIONAL EMPLOYMENT FOR YEAR 1990 +183 w HOUSING AND REDEVELOPMENT AUTHORITY (TAX INCREMENT FINANCE DISTRICTS) 1989 BROADWAY SQUARE LIMITED PARTNERSHIP/FmHA 1 886,590 EMV TIF REDEVELOPMENT DISTRICT 1-2 MODIFIED AND ADOPTED FOR CONSTRUCTION OF A 28 -UNIT SUBSIDIZED ELDERLY HOME. LAND ACQUISITION, BLIGHT, DEMOLITION, AND TANK REMOVAL. UPFRONT ASSISTANCE. 1989 NORTHERN STATES POWER COMPANY $ 195,000 EMV TIF ECONOMIC DISTRICT 1-8 ADOPTED FOR 11 JOBS CONSTRUCTION OF A 5,544 SQ FT DISTRICT SERVICE CENTER/OFFICE. LAND ACQUISITION. UPFRONT ASSISTANCE 1990 MARTIE'S FARl1 SERVICE $ 153,000 E41' TIF ECONOMIC DISTRICT 1-11 ADOPTED 11 JOBS FEBRUARY 12 FOR CONSTRUCTION OF A 9,427 SQ FT AGRICULTURAL PRODUCTION WAREHOUSE/OFFICE. LAND ACQUISITION. PAY-AS-YOU-GO ASSISTANCE 1990 TAPPER, INC. 1 750,000 EMV TIF ECONOMIC DISTRICT 1-9 DISTRIBUTED 50 JOBS WITH ADOPTION ON FEBRUARY 26 FOR CONSTRUCTION OF A 27,000 SQ FT OFFICE/ MANUFACTURING. LAND ACQUISITION. FRONT -UP ASSISTANCE PROJECTED EXPANSION TO 100,O^.0 SQ FT. 1990 REMMELE ENGINEERING, INC. 1 805,000 EMV TIF REDEVELOPMENT DISTRICT 1-10 50 JOBS DISTRIBUTED WITH ADOPTION ON MARCH 12 FOR CONSTRUCTION OF A 23,333 SQ FT OFFICE/ MANUFACTURING. LAND ACQUISITION FOR PROJECT AND VACATED ROAD AND UTILITY REALIGNMENTS. PROJECTED EXPANSION TO 60,000 SQ FT WITH TOTAL 150 JOBS IN FIVE YEARS. MUNCIPAL DISTRICT 1990 THE LINCOLN COMPANIES $2,500,000 EMV TIP ECONOMIC DISTRICT 1-1 DISTRIBUTED 72 JOBS (144 PT WITH ADOPTION ON MARCH 12 FOR r CONSTRUCTION OF A 86,000 SQ FT K -MART. LAND ACQUISITION FOR PUBLIC I'U'RO';EMENTS: STREET, WATER AND SANITARY, STORM SEWER COSTS, AND DEMOLITION. UPFRONT ASSISTANCE 15,289,590 EMV T0TAL 194 FT JOBS TOTA 1989 BUILDING PERMIT VALUATION ONE NEW INDUSTRIAL BUILDING PERMIT $ 225,000 ONE INDUSTRIAL EXPANSION PERMIT $1,093,000 NO NEW COMMERICAL BUILDING PERMITS - TWENTY-FOUR COMMERICAL REMODEL/ EXPANSION PERMITS $ 429,900 TOTAL 1990 TOTAL 1989 $1,747,900 $1,327,600 TOTAL BUILDING PERMIT VALUATION COMPARISON FOR CITY OF MONTICELLO 1987 1988 1989 PERMIT VALUATION $6,776,830 $6,170,100 $4.754,400 NUMBER OF PERMITS 138 155 134 I- 14. H