HRA Agenda 05-04-1988AGENDA
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, may 4, 1988 - 1:OOAM
City Hall
MEMBERS: Chairperson Ren Haus, Lovell Schrupp, Ben Smith,
Al Larson. and Everette Ellison.
STAFF: Assist. Administrator Jeff O'Neill and HRA Director
011ie Roropchak.
1. Call to Order.
2. Approval of the HRA April 16, 1988 Minutes.
3. Consideration to Approve the Certificate of Completion for
Tax Increment District V.
4. Consideration to Approve the Recommended Elderly Townhouse
Survey.
5. Consideration to Request the City Council's Opinion for
Financing Block 51 Alley.
6. Other Business.
7. Adjournment.
MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, April 6. 1988 - 7:OOAM
City Hall
MEMBERS PRESENT: Chairperson Ken Maus, Lovell Schrupp, Ben Smith,
Al Larson, and Everette Ellison.
STAFF PRESENT: Assist. Administrator Jeff O'Neill and HRA
Director 011ie Koropchak.
1. CALL TO ORDER.
Chairperson Ken Maus called the HRA meeting to order at 7:05AM.
2. APPROVAL OF THE REGULAR FEBRUARY 10. 1988 HRA MINUTES. AND
SPECIAL FEBRUARY 19, FEBRUARY 24, FEBRUARY 26, B:OOAM AND
12:15PM HRA MINUTES.
A motion was made by Ben Smith to approve the regular February 10;
and special February 19, February 24, February 26, B:OOAM and
12:15PM HRA minutes. Al Larson seconded the motion, -the minutes
stand approved.
3. CONSIDERATION TO APPROVE MODIFICATION 41 OF THE TAX INCREMENT
FINANCE PLAN FOR TAX INCREMENT REDEVELOPMENT DISTRICT 02.
Koropchak explained the Supporting Data (Tax Increment
District $2 Projected Budget Cost) and (Finance Plan
Options A and B). Option A. projected the tax increment
based on $24,500 per unit on the proposed 28 -unit elderly
project and the River Park View 31 -unit. Since no development
agreement was made for the River Park View development, no
assessor's agreement was executed guaranteeing o minimun
estimated market value on the apartment. The EMV with
decrease from $27,500 (Tax Book 1988) to $24,500 (Tax Book 1989).
Option B. has the EMV at $27,500 per unit on the proposed
28 -unit and $24,500 per unit of the River Park View. Doug
Gruber, County Assessor, recommended remaining consistent
with the first elderly project to advoid developers and
public questions. Option A projected a bond issuance at
$260,000 at 9.25 percent for 16 years. Option B-1 projected
a bond issuance at $260,000 at 9.25 percent over 15 years,
and Option B-2 projected a bond Issuance at $260,000 at
9.25 percent for 14 years.
Al Larson inquired of what is included in the administration
expense and if it was standard procedure? Statutory allows
for 10% of the project cost, wef6ormally use 52 to include
legal opinions, advertising fees, staff time, etc. and is
a normal procedure used. Jeff O'Neill inquired if there was any
buried fuel tanks within the domoltion altos. The only buried
fuel tank was removed with the demolition of the Old Ford
Garage building. Kan Maus inquired of the life duration
HRA Minutes - 4/6/88
3. CONTINUED.
of the district, which is to Year 2010 that would allow for
an additional 5 years beyond the projected debt retirement
options. Al Larson inquired if the debt retirement can be
paid off early if we have extra generated increment. No,
we cannot retire the debt service early, however, we can
accumulate extra increment for reserve to pay off the debt
service, therebye, allowing the county, school district, and
hospital district to collect their portions earlier than
projected. Rick Wolfsteller informed the HRA members TIF
changes are being considered by the 1988 Legislative.
Al Larson made a motion to use Option A for the use of
modifying the finance plan for TIF District 02, Modification
03. Option A establishes the EMV based on $24,500 per unit
on the proposed elderly apartment and River Park View apartment
with an estimated bond issuance of $260,000 at 9.25 percent
for 16 years. Everette Ellison seconded the motion and without
further discussion the motion passed 5-0.
4. CONSIDERATION TO DETERMINE DEMOLITION OPTIONS FOR THE
STELTON'S AND JONES' PROPERTIES.
Since the estimated demolition cost per property is $5,000
the HRA need not consider competitive bids. After some
discussion by the HRA, Al Larson made a motion that 1)
the HRA advertise locally for bids, the HRA develop their
own specification: protecting Topel's building, Wright
County approved land 9.111, necessary compaction of land
fill, and proper disconnect of utilities, and 2) mail
specification and bide to the two low bidder on the
Old Ford Garage building and to Mr. Joe O'Connor as he
expressed as interest in the verbal negotiations of his
executed option agreement. Ben Smith seconded the motion,
and without further discussion the motion passed 5-0.
The HRA wishes to review the specifications.
5. CONSIDERATION TO PROCEED WITH COST ESTIMATES FOR BLOCK 51
ALLEY.
Al Larson expressed that the financing for Block 51 alley
should be consistent with poet alloy projects. Ken Maus
asked if the City was granted an easement or deed on the
other alloys? Who maintains the alloys? Koropchak is
to research the history of fundings methods and if easements
or deeds were granted. Koropchok is to get an estimated
cost to do the project. Jeff O'Neill will obtain an
demolition example from the City of Watertown.
S
y
HRA Minutes - 6/6/88
6. CONSIDERTION TO ESTABLISH POLICY GUILDINES FOR THE USE OF
TAX INCREMENT FINANCING.
The HRA agreed that each request for the use of tax increment
financing should be considered individually (what can be
done). They suggested that Industrial Development Committee,
the HRA, and the City staff should work together to recruit
and promote Monticello. Does the City market thenself (offer
more than some other community)? Jeff O'Neill gave an
example of understanding your customer, where a community
was recruiting a toy manufacturer, the city went out and
purchased some of their toys which were on display on the
conference table when company representatives visited the
City. Can the assessments be deferred the first three years?
Can the HRA legally levy f mill to purchase a building and
resale it for $1.00? The HRA expressed one concern with
the Tax Increment Application Form that the autho riled
signed should be deleted.
7. OTHER BUSINESS.
Koropchak informed the committee she had acquired a list of
potential interested persons for the elderly townhouse
concept from Sally Martie. Koropchak is to sot up a meeting
with Gus and Gary LaFromboiee and the HRA for Wednesday
evening, April 20th.
8. ADJOURNMENT.
The NRA adjourned by consensus.
011ie Koropchak
HRA Executive Secretary
3. CONSIDERATION TO APPROVE AND EXECUTE THE CERTIFICATE OF
COMPLETION FOR TAX INCREMENT DISTRICT 07.
Since NAWCO Minnesota, Inc. has completed their 28.000 sq ft
facility on Lots 11 and 12, Block 2, Oakwood Industrial
Park in accordance with the Developers Agreement and Gary
Anderson has issued the company an occupancy permit, I
believe the NRA should approve and execute the Certificate
of Completion.
4. CONSIDERATION TO APPROVE THE RECOMMENDED ELDERLY TOWNHOUSE
SURVEY.
On Wednesday, April 27, 1988, Ren Maus, Al Larson, Gary DeBreor,
Vaughn Viet, and 011ie Koropchak met to discuss with the
builder the concept of elderly housing, one of the 1988
goals of the HRA. Mr. Veit was interested in proceeding,
and the consensus of the group was to develop a survey for
the local shopper. Gary DeBoer and Koropchak were scheduled
to meet on Monday, May 2, 1988 to draw up the survey.
Included is the drawing which was to be brief and to appear
on the front page. The HRA needs to clarify their role
in this project to advoid conflict of interest (public and
private). Please suggest ideas for the survey as the
shopper is expecting a call from me today. Price: 1/4
page in shopper,only,ie $155.20 and a flier would cost
approximately $665.00 047.50 per 1,000, circulation is
14,275).
5. CONSIDERATION TO REQUEST THE CITY COUNCIL'S OPINION FOR
FINANCING BLOCK 51 ALLEY.
Block alley's 34 and 52 were assessed 1002 to the property
owners and the city maintains alley 34 and has a contract
on alley 52 as they plow the alley into the city parking
lot and the city removes the snow. The city also maintains
the alloy of Block 35. Block 52 was never deeded to the
city, alloy 34 was, and we are not sure about alley 35.
Estimated cost for the Block 51 alley is $30,000.
Needs to 1) obtain City Council opinion, 2) have OSM
survey for catch basin and storm sower needs, 3)
contact property owners.
SCHEDULE D
CERTIFICATE OF COMPLETION AND RELEASE OF FORFEITURE
WHEREAS, The Housing and Redevelopment Authority in and for the City of
, Minnesota, a body politic and corporate (the "Grantor"), by a
Deed recorded in the Office of the County Recorder or the Registrar of Titles in
and for the County of Wright and State of Minnesota, as Deed Document Number(s)
and , respectively, has conveyed to NAWCO, Minnesota,
Inc., a Minnesota corporation (the "Grantee"), the following described land in the
County of Wright and State of Minnesota, to -wit:
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 1 and Z of said Deed; and
WHEREAS, said Grantee has to the present date performed said covenants
and conditions Insofar as It Is able In a manner deemed sufficient by the Grantor to
permit the execution and recording of this certifications
NOW, THEREFORE, this Is to certify that all building construction and
other physical Improvements specified to be done and made by the Grantee have
been completed and the above covenants and conditions In said Deed have been
performed by the Grantee therein 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 land described
herein, and the County Recorder or the Registrar of Titles in and for the County of
Wright and State of Minnesota Is hereby authorized to accept for recording and to
record, the filing of this Instrument, to be a conclusive determination of the
satisfactory termination of the covenants and conditions of the contract referred
to In said Deed, the breach of which would result in a forfeiture and right of re-
entry, but the coveTmts created by Sections 3 and 4 of sold Deed shall remain In
full force and affecIt.
Dated: ,19_
IN THE PRESENCE OF:
THE HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY
OF MONTICELLO, MINNESOTA
By
By
STATE OF MINNESOTA )
)as.
COUNTY OF WRIGHT )
On this day of 19__jbefore me, a Notary Public
within and for sEdd —County, personally appeared . to me
personally known, who, being by me duly sworn, did say that (s)he is the
of the corporation named in the foregoing instrument;
that the seal affixed to said instrument Is the corporate seal of said corporation;
that said instrument was signed and sealed in behalf of said corporation by
authority of its Board of Commissioners; and said
acknowledged said instrument to be the free act and deed of said corporation.
Notary Public
STATE OF MINNESOTA )
) as.
COUNTY OF WRIGHT )
On this day of, 19 before me, a Notary Public
within and for saT& County, personally appearei , to me
personally known, who, being by me duly sworn, did Say that (s)he is the
of the corporation named in the foregoing Instrument;
that the seal affixed to said Instrument Is the corporate Seal of said corporation;
that Said instrument was signed and sealed in behalf of Said corporation by
authority of Its Board of Commissioners; and Said
acknowledged Said Instrument to be the free act and deed of said corporation.
Notary Public
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TOWNHOUSE CONCEPT: Individually Owned
Exterior Maintenance Free
Common Grounds
Ground Level Living Area
Energy Efficient
LOCATION: Within walking distance of churches and the Monticello
Business Core.
AGE GROUP: 45 to 55 years
55 to 65 years
65 to 75 years
75 or over
PRICE RANGE INTEREST: $80,000 to $90,000.
$90,000 to $100,000.
$100,000 and up.
For further information, please give your name, address, and telephone
number.
P —AUTHORITY
Mo 55362
The Monticello Housing and Redevolopmont Authority is conducting o
survey to determine the need for high quality housing close to
Y downtown. If you aro interested, please fill out the eurvey and
return to: MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
250 EAST BROADWAY
MONTICELLO. MN 55362
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TAX INCREMENT FINANCING UPDATE
"THE 1988 LEGISLATIVE CHANGES"
Prepared by: Business Development Services, Inc.
8990 Springbrook Drive
Suite 230
Minneapolis, MN 55433
Date: May 2, 1988
The Minnesota State Legislature has completed the 1988 tax bill.
This tax bill contains a number of substantial changes in the Tax
Increment Financing statutes. An overview of the major changes,
as we understand them, is as follows:
I. Housinq Districts
Housing projects must be tied much more closely to low and
moderate income projects. The value of retail/commercial or non
"low to moderate income" property cannot exceed 30 percent of the
total value within a housing district. This change becomes
effective for all projects certified after May 1, 1988.
II. Economic Development Districts
Economic Development Districts have been restricted by the
provision that collectively, no more than 25 percent (as
determined by square footage of buildings) of properties can be
restaurants, bars, automobile sales or service, recreational or
entertainment facilities, golf courses, massage parlors, tennis
clubs, skating facilities, racquet sports facilities or race
tracks. This provision applies only to the metropolitan area.
III. Redevelopment Districts
TIF law repeals the ability to qualify a redevelopment district
due to its soil conditions. In the alternative, a new soils
district has been established. These districts must meet the
qualifications under present laws for soils redevelopment
districts. The time period for the length of the district,
however, has been shortened from 25 to 12 years. In addition,
"land write downs" in soils condition districts will not be an
eligible use of proceeds. Eligible expenses in a soils condition
district includes only actual acquisition coat of the land, the
cost of soils corrections, and directly associated public
improvements.
In addition, counties have also been given the right to
require the increment derived from a soils condition project to
be dedicated to associated road improvements. •The county has 30
days after the proposed TIP plan is submitted to notify the
authority that it intends to require payment of the county's road
cost.
The Tax Law also establishes hazardous substance sites as
redevelopment sub -districts. Several new positions were added
to administer these districts.
ADMINISTRATIVE CHANGES
A. Notification and a copy of the plan must now be submitted to
both the county and school boards at least 30 days in
advance of the scheduled public hearing.
B. Mn preparing the financing plan, the fiscal impacts must be
separated for overlapping taxing districts and two separate
impacts must be identified. All studies and analyses used to
make the development plans must also be identified.
C. A new definition of the tax increment has been established.
No longer will communities be allowed to capture the
additional increment generated by an •increased• mill rate.
Calculations of the increment must always be based upon the
Lesser of the existing mill rate or the mill rate at time of
plan's approval.
D. The public hearing and adoption of tax increment financing
plans must now be completed prior to the issuance of any
building permits in the district. Any building permits
issued prior to the adoption of the plan will lose the
full projected value of the project.
E. For all new districts certified after May 1, 1988, counties
can charge cities for the county's actual administrative cost
Eat the tax increment districts.
i
.Demolition Permit
125 Lewis Street
Watertown, Minnesota
Prior to and during demolition barricades and/or fencing will be
provided around the demolition site to insure the safety of
pedestrians and motorists on the public R.O.W. and private
property.
Water and sewer services are to be properly sealed and marked at the
property line as per City approval. Other utilities are to also be
properly terminated.
3. Materials from demolition are not to be buried on site.
4. All demolated materials are to be disposed of properly off the site
and to a site near the City garage in the City of Watertown.
�. All cavaties created by the demolition are to be filled with proper
fill material. -The finished site is to be level, debris free, and
maintainable.
Prior to demolition the City is to receive a copy of the certificate
of insurance submitted which illustrates the liability coverage of
the contractor. The certificate should illustrate the City as a
holder of the certificate.
7. The City assumes no liability for injuries, property damage, etc.
to t property or other public or private property
or persons. All damage to public property to be repaired or
compensated by the contactor and/or property owner.
S. The applicant and/or contractor are required to contactthe Building
Inspector tall neces orhary insp�ecti�on. Building Inspector is Pawl
9. Back slope must be provided withon control devices, or covered
to provide such. This control sh9d1d be installed as such to last
beyond demolition.
10. Cost to demolish istructure charged to City shall not exceed SP 9MrN-
11. Payment of all costs of repairing sidewalk and street for any damage done during
demolition will be subtracted from payment of demolition fee.
Dennis Boning
DEMOLITION
GENERAL
BUILDING DESCRIPTION
GENERAL ARCHITECHURE:
Designed to accommodate a commerical
service business. Constructed in 1948.
For the past several years the building
the building has been utilized by a
jevelry manufacturer.
STYLE:
The subject is both a concrete block
and steel rectangular shaped building,
on slab, flat roofed.
SIZE:
24' x 87' plus 2' x 16' or 2,120
sq. ft. of gross building size.
CONSTRUCTION DETAILS:
Roof:
Built-up tar and gravel, flat
roofed, concrete and wood planked.
Walls:
Concrete block and steel, with
minor signs of cracking and/or
loosening of grout.
Foundation:
Not visible, but assumed to be
poured, reinforced concrete to
below frost grade, and poured
concrete floors.
Doors:
Front entry door is metal framed
with glass. Two service entries
on the south, and one service
entry on the north; all metal
doors in wood frame.
Windows:
Glass storo-front windows on the
wort. Four aluminum combination,
double -hung windows on the south,
and two aluminum combination win-
dows on the north.
INTERIOR FINISHESt
Meagre; storo-front has carpet
floors, panel walls, and an acous-
tical T -bar coiling. The remain-
der of the building has an asphalt
tile or concrete floor, panel or
concrete block walls, and an acous-
tical T -bar or unfinished toiling.
UTILITIES:
Served by electricity, telephone.
city water, city savor, and
natural gas.
Demolition
SCOPE
a. Work includes the demolition and removal of the existing
building as shown on the site plan. The resulting ex-
cavations shall be filled with a compacted fill using clean
granular materials to the level of the adjacent blacktop,
sidewalk, alley, or ground area.
b. All debris, including rubbish, furnaces, pumps, brick,
concrete, plaster, wood, wire, glass, steel, pipe, and
other like materials shall be removed from the site
and properly disposed of.
c. All concrete slabs, curbs, platforms, walks, and drives
"within the property" (except wherenoted to be saved) shall
be removed.
UTILITIES
a) All water services shall be shut off and securely capped
at the porperty line by the Contractor. The Contractor will
backfill the excavation and replace the area with like
material aswas removed, if suitable.
b) The sewer services shall be plugged at the property line
to the west of the building. The demolition contractor
shall plug each disconnected sewer service under a repair
permit (no fee) issued by the Department of Public Works.
The disconnected sewer service shall be uncovered at the
property line and there plugged and sealed tightly with
an approved bulkhead.
The Contractor shall leave the trench open at the point
where service is plugged until inspected by the City's
Building Inspector, Cary Anderson, 295-2711.
c) Electric service will be removed by NSP prior to demolition.
d) The gas service shall be disconnected by North Central
Public Service prior to demolition.
e) The telephone service shall be disconnected by Bridgewater
Telephone Company prior to demolition.
f) It is the Contractor's responsiblity to properly disconnect
and plug any water, sanitary sewer, or storm sewer services
encountered during demolition which are not shown on the
alto map.
PROTECTION
a) The Contractor shall arrange his demolition operation so as
i not to damage the followings
1) Any or all curbs bordering the property.
Demolition
PROTECTION (continued)
2) Street lights.
Q
The Contractor shall prior to and during demolition, barricades
and/or fencing oil Lba-prer+ded around the demolition site to
insure the safety of pedestrians and motorists on the public
R.O.M. and private property.
Fire Protection
1) The fire department shall be notified immediately if
a fire is discovered.
2) No material, obstruction, or debris shall be placed or
allowed to accumulate with fifteen (15) feet of any
fire hydrant. All fire hydrants shall be accessible
and ready for instant use.
3) Whenever a cutting torch or other equipment which might
cause a fire is being used, the Contractor shall keep
fire extinguishers nearby and ready for instant use.
The Contractor shall remove all debris from the property over
City apporved haul routca.
The City or Housing and Redevelopment Authority assumes no
liability for injuries, property damage, etc. to 110 North
Locust property or other public or private property or persons.
All damage to public property to be repaired or compensated by
the contractor.
Prior to demolition the City is to receive a copy of the certificate
of insurance submitted which illustrates the liability coverage of
the contractor. The certificate should illustrate the City as a
holder of the cortificiato.
SITE PREPARATION AND COMPACTED FILL
The Atte shall be prepared for the fill by removing the
foundation walls and floors. All miscellaneous debris
shall be removed from the interior prior to the fill.
The resulting excavations shall than be filled with clean
granular material and cojpacted in thin lifts at a satisfactory
moisture content as to achieve o minimum of 952 of standard
proctor density. If required by the City, one compaction test
per lift par 4,000 eq ft shall be taken by an approved
testing laboratory. Coate of all required testing shall be
borne by the Contractor, including retesting if necessary.
The fill shall continue to the existing grade and shall be
shaped to meat the adjoining surface. Demolition rubble will
not be permitted in the backfill.
Demolition
CLEAN UP
The site will be left in a clean and level condition, satisfactory
to the City.
DISPOSAL SITE
The Contractor shall properly dispose of all materials in a county
permitted demolition site.
PERMITS AND INSPECTION
The contractor is required to contact the City Building Inspector
for all permits (demolition permit) and all necessary inspection.
Gary Anderson, 295-2711.
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