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HRA Agenda 02-04-1993AGENDA MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY Thursday, February 4, 1993 City Hall MEMBERS: Chairperson Al Larson, Vice President Ben Smith, Lowell Schrupp, Everette Ellison, and Tom St. Hilaire. STAFF: Rick Wo lfsteller, Jeff O'Neill, and 011ie Koropchak. 1. CALL TO ORDER. 2. CONSIDERATION TO APPROVE THE JANUARY 6, 1993 HRA MINUTES. 3. CONSIDERATION TO ELECT 1993 HRA OFFICERS: CHAIRPERSON AND VICE -CHAIRPERSON. 4. CONSIDERATION OF A SENIOR HOUSING UPDATE: a) Letter of Pat McCullough b) Schwientek Plane c) Discuss potential sites b. CONSIDERATION OF A REPORT AND FOLLOWUP TO THE NAHRO CONFBRENCE. a) Minnesota Housing Finance Agency b) Section 8 - Rental Housing Assistance c) Rediscover Richfield d) Wright County HRA 6. CONSIDERATION TO REVIEW RESULTS OF THE ELIMINATION OF OTHER FINANCIAL PACKAGING FROM THE BDS/HRA CONTRACT. 7. CONSIDERATION TO AUTHORIZE THE DEVELOPMENT CONTRACT CERTIFICATE OF COMPLETION FOR AROPLAH AND SMM. 8. CONSIDERATION OF PROSPECT UPDATES: a) Wilson Tool International b) All -Temp Distribution c) Custom Canopy d) Recreational Parte and Equipment 9. CONSIDERATION TO REVIEW AND ACCEPT THE 1993 ECONOMIC DEVELOPMENT WORK PLAN. 10. OTHER BUSINESS. 11. ADJOURNMENT. MINUTES MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY Wednesday, January 6, 1993 - 7:00 p.m. City Hall MEMBERS PRESENT: Chairperson Al Larson, Ben Smith, and Tom St. Hilaire. MEMBERS ABSENT: Lowell Schrupp and Everette Ellison. STAFF PRESENT: Jeff O'Neill and 011ie Koropchak. STAFF ABSENT: Rick Wolfsteller. GUEST PRESENT: Mayor Ken Maus, Hospital Administrator Barb Schwientek, and Pat McCullough, co-owner of Health Planning Management Resources, Inc. 1. CALL TO ORDER. Chairperson Al Larson called the HRA meeting to order at 7:00 p.m. 2. GUESS' PRESENTATXCK;. PAT MCCUIoJLOUGH, Fjig MARKET STUDY AND OTHER OPTIONS NECESSARY FOR ASSISTED -LIVING SENIOR HOUSING. Pat McCullough outlined for HRA members what Is normally considered in a Market Feasibility Analysis. The study which is used to assess the demands for congregate or assisted living housing consists of two phases. Phase I defines the primary and secondary market areae through data collected within a retail and health care service area. Inventory assessments include existing and projected population as well as living arrangements and income levels, competitive projects such as nursing homes and other subsidized housing projects, community-based or support services available, and the potential draw from outlying areas. Federal/local housing programs and service options, and types of ownership/fee structures are also defined. Additionally, Phase I includes interviews with seniors/senior organizations as to the attitudes and habits of the area seniors. Along with the do's and do not's of a proposed site, the market study would identify the potential feasibility of a proposed project by number of units or project size and a fee structure which could be supported. If Phase I identified a need and a decision was made to proceed, Phase It known as the consumer research would survey persons potentially eligible for the proposed project and/or would consists of a series of focus groups. HRA MINUTES JANUARY 6, 1993 In today's world, heclth care services are generally utilized by seniors 75 years or above and trends indicate today's senior appears to be more affluent. Minnesota has seen an increase of immigration in the over 75 age population. Subsidized project rates are generally 30% of one's income and projects depend upon funding availability. Pat said she has done a reasonable amount of work for the Monticello -Big Lake Hospital District and has worked with Carol Mills. Phase I would be completed in 6-8 weeks at a cost of 85,600 and Phase II in about a week at a coat not -to - exceed 83,500 for a maximum total of 89,100. Today, very few senior housing projects are developed privately because they are not profitable. The beet t Sme to open a senior project is In the spring, and seniors can be economically good for a community and need options. Barb Schwientek expressed the Hospital District's interest in the management (rental and providing services) of a senior housing project. The Hospital District and the HRA are not interested in development or ownership. HRA recommendations were for Pat McCullough to provide a list of interested developers (some turn -key), for Schwientek and Koropchak to develop a newspaper article or advertisement for local developer/ownership interest after Schwientek has reviewed the concept with the Hospital Board, and to contact Brad Larson as a courtesy measure. The HRA reiterated their interest to serve as a facilitator and to investigate the need for senior housing. Chairperson Larson thanked Ken, Barb, and Pat for their attendance and participation. 3. CONSIDERATION TO fiPPROVE THE D$CZMBRR 2. 1992 HRA MINUTes. Member St. Hilaire asked for a clarification to the motion under item six, page three. Thereafter, Ben Smith made a motion to approve the December 2, 1992 HRA minutes, seconded by Tom St, Hilaire, and with no corrections or additions the minutes were approved as written. COtISIDEOATE4£1 TO REyaEW, XP ACCOyNTAB, TTy ALL pj3VEPOPMENT COSTS SSOCIATBID gJTk TNS ABOPLAR AND SKM PROJECTS AND AUTHORIZATION TO TRANSFER BUNDS, Enclosed with the agenda was a copy of the accounting ledgers for the SMM and Aroplax TIP Districts as prepared by Mr. Page 2 HRA MINUTES JANUARY 6, 1993 Wolfsteller, and a summary of the 1992 HRA Budget and project costs as prepared by Koropchak. Koropchak indicated copies of Individual billings were available for HRA review. First, Koropchak reviewed the statutory definition of administration expenses to include services provided by bond counsel, fiscal consultants, and planning or economic development consultants; and the limitation of administrative expenses as not -to -exceed 10% of the total projected tax increment. Koropchak informed the HRA that the projected 10% tax Increment for the SMM project is approximately $10,000. Total project expenditures were $14,175. The breakdown 19 TIF Packaging, $6,000; Other Finance Packaging, $3,200; Other Project Costs, $3,500; Engineering Costs, $1,300; and Miscellaneous Costs, $180. The projected 10% tax increment for the Aroplax project is approximately $10,800. Total project expenditures were $26,800. The breakdown Is TIF Packaging, $9,800; Other Finance Packaging, $12,300; Other Project Costs, $1,800, and Engineering Costa, $860. Koropchak indicated administrative expenses referred to costs associated with development of a TIF district. Therefore, staff is requesting the HRA to authorize transferring $8,180.61 (SMM) and $10,981.30 (Aroplax) from the TIP Surplus Fund into a HRA Development Fund in order for the city to recover all -costs associated with development of the SMM and Aroplax projects. It was the HRA's understanding that individual TIF District project costs would stand -on -its -own. In observation, total project costs were 18% and 20% of the bond issuance for the SMM and Aroplax projects, respectively. Koropchak reminded HRA members that these two projects were the first-time BDS provided services for other financial packaging, therefore, total accountability was previously unavailable. The NRA viewed the TIF surplus fund as a possible open checkbook to any consultant. Surplus dollars were earmarked by the HRA as potential dollars to assist a Quality industrial or senior housing project. The HRA members Informed Koropchak to write Mr. Pelstring a letter requesting the deletion of other financial packaging such as Federal, State, or Regional applications from the BDS/HRA contract. These costs to be negotiated between BDS and the funding applicant (developer). The HRA would retain BDS for TIF and marketing. Page 3 HRA MINUTES JANUARY 6, 1993 Tom St. Hilaire made a motion to transfer $8,180.51 and 816,951.30 from the TIF Surplus Fund into a HRA Development Fund. The motion was seconded by Al Larson and without further discussion passed unanimously. CONSIDERATION TO REVIEW AND ADOPT 1993 HRA OBJECTIVES. The HRA members requested the deletion of inclusive of a market study and site location from Goal No. 1 and thereafter agreed to the 193 objectives. The HRA requested an accountability of all TIF dollars from the Finance Director. Mr. O'Neill requested direction from RRA members regarding cleanup and relocation of the JM 011 Property. The HRA responded that JM Oil was responsible for cleanup of the property along Fifth Street and thereafter would the HRA encourage relocation to the industrial park through a possible swap of lands or a low -negotiated price of the' HRA lot. PROSPECT UPDATE: a) Custom Canopy - Although staff has met with Jim Beyl regarding the building and site plans, Koropchak has yet to receive the Letter of Intent for project development from the company and therefore the 88,000 annual pay-as-you-go TIF assistance has not been presented to the company. b) All -Temp Distribution - Enclosed with the agenda was a project summary for All -Temp and the projected level of TIB assistance available as recommended by BDS. Direct assistance of $67,800 for land acquisition, $32,500 for site or on-site utility development, and $30,000 for public utility development. The company is looking to develop a 50, 000 sq ft refrigerated -storage facility on approximately five acres. Due to the desire for rail, the Hoglund property becomes most suitable. Potential of 20 full-time jobs. Mr. O'Neill Informed HRA members that East 7 Street is dedicated as a State Aid Road and therefore will receive development funding. The HRA agreed to a TIF go-ahead. c) Wilson Tool International - Koropchak reported no news from this White Bear Lake company. Monticello is viewed as a strong site location contender and will be contacted upon completion of the company's spread -sheet analysis. d) Recreational Catolog and Warehouse/Retail - Koropchak requested direction from the HRA. This eastern company is looking to establish a midwest recreational (snowmobile/motorcycle) parts and equipment market and to construct an approximate 7,000 to 10,000 eq ft metal building which would employ 10 full-time people at 05.80 per hour. The greater portion of the facility would be for warehousing and Page 4 NRA MINUTES JANUARY 6, 1993 the catolog center and the smaller portion for actual retail sales. Mr. Pelstring indicated that by statutory a TIP District could be created, however, it becomes an HRA policy decision. In a place like Crookston, Minnesota, the opportunity would be jumped at. The HRA requested the projected percentage of retail sales as compared to the catolog sales before considering the use of TIP. Would the company be a competitor of Moon Motors? Would the company sell snowmobiles or motorcycles? If considered, it would be the pay-as-you-go assistance much as the Martie's. 7. OTHER BUSINESS. a) Upon Brad Barger being out-of-town for two weeks, he has requested the 820,375 TIP dollars for site improvements be placed in an escrow account at Chicago Title. Project "site improvements" meaning grading, curbs, water and sewer hook-up and landscaping which have been fully completed and the HRA furnished with evidence. Koropchak indicated to Brad that although the HRA would agree that the curbing and landscaping could not be completed until spring, the HRA has been consistent to stick with the terms of a negotiated and executed Development Contract. Koropchak said she'd bring the request before the HRA and suggested that Brad, in the meantime, produce evidence of the completed grading and water/sewer hook-up costa for disbursement to Chicago Title. The HRA upheld the terms of the executed Development Agreement, however, agreed with Koropchak's suggestion to produce evidence of completed costs. b) Koropchak reported on the January Winter NAHRO Conference to be held in Bloomington of which she plane to attend. c) HRA members were provided with a copy of the City's liability coverage which is amended to cover the NRA. The HRA requested additional information: What are the limits and the amount of coverage? ADJOURNMENT. The HRA meeting adjourned at 10:00 p.m. Qom►- \�<A U�cS 3--- 011ie Koropchak, HRA 'Executive Director Page 5 Health Planning & Management Resources, inc. January 25.19W Oma Koropchak Morello Housing and Redevelopment Authority P.O. Box 1147 Montoe8o, MN 55362 Dear 011ie, Forgive my tardiness in getting back to YOU. There are a number of developers who are interested In assisting but not owning housing. Two developers who are Interested in talking with you, with the understanding that they would own whatever develops, are: Carol Mins, Executive Director Guardian Angels Fotundatim Elk Rimer, MN 612/441.1213 Gare would be partfoularly interested in meeting soon because of time lines that exist for the next round of grants through Housing and Urban Development similar to the grant that they received for Angel Ridge, their supportive housing development for seniors that Is being constructed. She feels quite optimistic about your chances in the prooess. In addition, she has l nvited any of your people that may be Interested to a session on Thursday. February 11, from 1:00.2:30 at the Hyatt Regency In Minneapolis. Carol will be partdpatng In a panel with HUD officials regarding the housing program. and she exxight It would be helpful for you to learn about ti. She will be able to Include any of your people under her corporate registration, but would like you to owdecl her soon regarding Interest. Prime Professional Centet 4910 Lincoln Drive Edina. Minnesota 55436 612-935-6077 FAX 612-9357382 Jarwary 25, 1890 ONO Koropchak Page two Wmam Myers, President E6m Care, Ino. 612/5501788 Elim Care has five noting homes, two sePoor housing projects end several additional housing projects in the development steges. Please feel free to call me for arty addMwW hrformadon that you may need I enjoyed meeting with your Wmp- (�' -11 �e Patrlda a McCuftO PAM/pm (2) 250 East Broadway January 11 , 1993 P.O. Box 1147 Monticello, MN 55362-9245 Phone: (612) 295.2711 Merro: (612) 333.5739 Fax: (612) 2954404 Mr. Pat Pelstring Business Development Services, Inc. 0990 Springbrouk Drive Suite 230 Minneapolis, MN 55633 Dear Mr. Pelstring: At the January Monticello Housing and Redevelolimettt Authority (IIRA) meeting, the commission again reviewed Business Development Services, Inc. (BDS) charges aG.-iociated with packaging the Central Minnesota Initiative Fund, the Small Dusiness Adminletration, and the State Economic. Recovery Grant for the Aroplax and Suburban Machine & Manufacturing projects. Although, the associated charges can be recovered through the transfer of TIF total project incomes into a IIRA Development Fund, It wat; the deciciun of the commiosion to delete packaging from the agreement hetweeti BIDS and the IIRA. The IIRA understood tlint all city packaging and development costa would be recovered through the respective TIF District administrative expenae. The II11A elects to retain DDS for TIF packaging and marketing. We may need to amend our agreement. Pat, it is the hupe of the HRA that the established relatiuntahlp between DDS, the RRA, and the City of Munticello will not change. The IIRA's only request Is that packaging chargee associated with federal, state, or reglonol programs be negotiated between BDS and the prospective business. MqftA Mr. Yelstring January 11, 1993 Page 2 If you have any questions, please don't hesitate to call me at METRO 333-8739 or (612) 298-2711. I thank you in advance and look forward to a continued business -working relationship with Business Development Services,' Inc. Sincerely, CITY OF MONTICELLO 011ie Koropchak Economic Development Director cc: Administrator Wolfsteller Assistant Administrator O'Neill LIRA File AROPLAS CORPORATION PROJECTED TAX INCREMENT = $157,900 S 10% a $15,790.40 TIF ADMINISTRATION COSTS: AS AMENDED TIF PLAN (BDS) $ 4,700.00 TIF CERTIFICATION 8 50.00 TIF LEGAL (HOLMES 6 GRAVEN) 5,274.37 ($192.50) SUBTOTAL $ 10,024.37 TIF PACKAGING COSTS: CENTRAL MINNESOTA IMITATIVE FUND (CHIP $1,677.75) APPLICANT SMALL BUSINESS ADMINISTRATION (SBA $1,293.75) APPLICANT STATE ECONOMIC RECOVERY GRANT (ERG $4,359.75) CITY OR APPLICANT BUSINESS PLAN ($1,045.00) APPLICANT SUBTOTAL $12,289.53 PROJECT COSTS: LEGAL (WEINGARDEN) TIF $ 243.75 APPLICANT STATE j 1.580.45 CITY OR APPLICANT SUBTOTAL $ 1,824.20 M_�NGINEERING COSTS: OSM $ 837.57 CITY OR APPLICANT TOTAL SUBTOTAL $ 14,951.30 TOTAL $ 24,975.67 2/4/93 $24,975.67 PROJECT EXPENSE 815,790.40 ID% TAX INCREMM 8 9,185.27 TI SURPLUS TO HRA DEVELOPMENT FUND SUBURBAN MACHINE & MANUFACTURING PROJECTED TAX INCREMENT = $100,488 X 10% _ $10,048.80. TIF ADMINISTRATION COSTS: AS AMENDED TIP PLAN (BDS) $ 3,850.00 TIP LEGAL (HOLMES & GRAVEN) 0 2.142.00 SUBTOTAL $ 5,992.00 TIF PACKAGING COSTS: CHIP (BDS) $ 3,206.25 APPLICANT PROJECT COSTS: LEGAL (WEINGARDEN) BDA 6 2,349.25 APPLICANT TIP $ 412.50 APPLICANT SIGN ORDIANCE & PLAT $ 719.59 CITY OR APPLICANT SUBTOTAL 8 3,474.25 MISCELLANEOUS: FILING, PUBLIC NOTICES $ 183.76 TIF ENGINEERING COSTS: OSM $ 1,316.25 CITY OR APPLICANT TOTAL SUBTOTAL $ 8,180.51 i L:OTAL 814,172.51 2/4/93 $14,172.51 PROJECT EXPENSE 810,048.80 10% TAX INCREMENT $ 4,123.71 TI SURPLUS TO HRA DEVELOPMENT FUND SUBURBAN MACHINE & MANUFACTURING PROJECTED TAX INCREMENT = $100,688 R 10% a $10,048.80. TIF ADMINISTRATION COSTS: AS AMENDED TIF PLAN ODS) $ 3,850.00 TIF LEGAL (HOLMES & GRAVEN) $ 2,142.00 SUBTOTAL $ 5,992.00 TIF PACKAGING COSTS: CHIP (BDS) $ 3,206.25 APPLICANT PROJECT COSTS: LEGAL (WEINGARDEN) EDA $ 2,349.25 APPLICANT TIP $ 412.50 APPLICANT SIGN ORDIANCE & PLAT $ 712.¢0 CITY OR APPLICANT SUBTOTAL $ 3,474.25 MISCELLANEOUS: FILING, PUBLIC NOTICES $ 183.76 TIP ENOINEERING COSTS: OSM $ 1,316.25 CITY OR APPLICANT (NOT LEGAL TIF EXPENSES) TOTAL SUBTOTAL $ 8,180.51 l� TOTAL $14,172.51 CORRECTION: 1/6/93 $14,172.51 TOTAL EXPENSES 2/4/93 $24,172.51 $ 5,9029.00 TIP EXPENSES $10,048.80 10% TI $ 8,180.51 HRA DEVELOPMENT $ 4,123.71 HRA DEV AROPLAX CORPORATION PROJECTED TAX INCREMENT = $157,904 X 107 = $15,790.40 TIF ADMINISTRATION COSTS: AS AMENDED TIF PLAN (BDS) $ 4,700.00 TIF CERTIFICATION $ 50.00 TIF LEGAL (HOLMES & GRAVEN) 4 5.274.37 ($192.50) SUBTOTAL $ 10,024.37 TSB PACKAGING COSTS: CENTRAL MINNESOTA IMITATIVE FUND (CMIP $1,677.75) APPLICANT SMALL BUSINESS ADMINISTRATION (SBA $1,293.75) APPLICANT STATE ECONOMIC RECOVERY GRANT (ERG $4,359.75) CITY OR APPLICANT BUSINESS PLAN ($1,045.00) APPLICANT SUBTOTAL $12,289.53 PROJECT COSTS: LEGAL (WEINGARDEN) TIF $ 243.75 APPLICANT STATE 0 1.580.45 CITY OR APPLICANT SUBTOTAL $ 1,824.20 ZNGINEERINO COSTS: OSM $ 837.57 CITY OR APPLICANT (NOT LEGAL TIF EXPENSES) TOTAL SUBTOTAL 8 14,951.30 TOTAL $ 24,975.67 CORRECTION: 1/6/93 $24,780.17 TOTAL EXPENSES 2/4/93 $24,975.67 $ 9,831.87 TIF EXPENSES 815,790.40 10% TI $14,951.30 HRA FUND $ 9,185.27 HRA FUND BDS PLAT RATE TO A COMPANY: EXAMPLE SBA $1,500 UPFRONT (non-refundable) ONE-HALF PERCENT (.005) OF THE FINANCING OR MINIMUM FEE OF $3,000. MULTI FUNDING - ONE PERCENT (.01) OF THE FINANCING CD Houma & GRAVEN cnAersa=o 00rah-7 am r+mh—avma .January .S. 1;3T _NVj.7C= s 44677: Monticello NRA nNi: City hall 2°0 = Or aadwag P.O. Goc e3A Monticello. MN !!-i2 Re: Schoen Rodvvel-zpmint Cantract co,0y For All Legal Services Reroo-td Through De:ember 31. 1494 os Follews 10/O1r92 Phone cull witn attorney re latter of 0. 28 undertaking re Schoen 1Q/02:92 Prepare. intTao-Iftce conferen':a with u 1.:9 Koropehak and make reviselone re letter o4 undertaking; ph.;na :all with P yeir.garden re Schain closing Total Hary:cai. 1.90 $187.50 For All Disbursements As Follews: 11/13/9: Parking expand* 9.00 'c tsi Disbursements: TOTAL FEES AND DISBURSEMENTS: $12hA2 k� under pomp Of urs OWdbsomau delaofdo Low Id i w ad cons end dul m peel alehes aaaMw n, e -c k44 ARTICLE Iv Construction of Minimu Improvements and Public Improvements Section 4.1. Construction of Minimum Improvements. The Redeveloper agrees that, in the event of payment of Land Writedown, it will complete construction the Minimum Improvements on the Redevelopment Property in accordance with the approved Construction Plans and at all times prior to the Maturity Date will operate and maintain, preserve and keep the Minimum Improvements or cause the Minimum Improvements to be maintained, preserved and kept with the appurtenances and every part and parcel thereof, in good repair and condition. Section 4.2. Construction Plans. (a) As of the date of this Agreement, the Redeveloper has submitted to the Authority and the Authority has approved Construction Plans providing for the construction of the Minimum Improvements. (b) If the Redeveloper desires to make any material changes in the Construction Plans after their approval by the Authority, the Redeveloper shall submit the proposed changes to the Authority. For purposes of this subsection, a "material change" shall mean any change which alters the exterior appearance of the Minimum Improvements or reduces the market value of such improvements upon completion. If the Authority approves the proposed change, it shall notify the Redeveloper in writing of its approval within ten (10) working days from the date of Its receipt of the proposed change. If the Authority reasonably determines that such proposed change is unacceptable, it shall so notify the Redeveloper in writing within ten (10) working days from the date of its receipt of such proposed change, together with an explanation of the basis for the rejection. If the Authority fails to notify the Redeveloper of its rejection of any proposed change in the Construction Plans within said ten (10) working days from the date of Its receipt of such proposed change, the proposed change shall be deemed approved by the Authority. Section 4.3. Commencement and Completion of Construction. Subject to Unavoidable Delays, the Redeveloper shall commence construction of the Minimum Improvements within five (8) days after the Closing, or on such other date as the parties shall mutually agree. Subject to Unavoidable Delays, the Redeveloper shall complete the construction of the Minimum Improvements by January 2, 1993. All work with respect to the Minimum Improvements to be constructed or provided by the Redeveloper on the Redevelopment Property shell be in conformity with the Construction Plans as submitted by the Rodeveloper and approved by the Authority or as revised pursuant to Section 4.2(b). The Redeveloper agrees for itself, its successors and assigns, and every successor in interest to the Redevelopment Property, or any part thereof, that the Redeveloper, and such successors and assigns, shall promptly begin and dlligently prosecute to completion the redevelopment of the Redevelopment Property through the construction of the Minimum Improvements thereon, and that such construction shall in any event be commenced and completed within the period specified in this Section 4.3 of this Agreement. It is Intended and agreed that such agreements and covenants shall be covenants running with the land and that they shall, In any event, and without regard to technical classification or designation, legal or otherwise, and except only as otherwise specifically provided !n tho Agreement Itself, be, to the fullest extent permitted by low and equity, binding for the benefit of tho Authority and enforceable by the Authority against the Redeveloper and its muu4 is►na 9 successors and assigns. Subsequent to conveyance of the Redevelopment Property, or any part thereof, to the Redeveloper, and until construction of the Minimum Improvements has been completed, the Redeveloper shall make reports, in such detail and at such times as may reasonably be requested by the Authority, as to the actual progress of the Redeveloper with respect to such construction. tiSec on4.4. Certificate of Completion. (a) Promptly after comi3letion of the MinimusmUvements in accordance with those provisions of the A reement relating solely to tie obligations of the Redeveloper to construct the Minimum Improvements (including the dates for beginning and completion thereof) , the Authority will furnish thq Redeveloper with Certificat o Completion. Such certification oy the Authority soe a conclusive determination hall of satisfaction and termination of the agreements and covenants in the Agreement with respect to the obligations of the Redeveloper, and its successors and assigns, to construct the Minimum Improvements and the dates for the beginning and completion thereof. Such certification and such determination shall not constitute evidence of compliance with or satisfaction of any obligation of the Redeveloper to any Holder of a Mortgage, or any insurer of a Mortgage, securing money loaned to finance the Minimum Improvements, or any part thereof. (b) The Certificate of Completion provided for in this Section 4.4 of this Agreement shall be in such form as will enable it to be recor4ldla th2 proper office for the recordatjton o deeds dad other instruments pertaining to� Redevelopment Property. it the uihority shall refuse or fail to provide the Certificate of Completion in accordance with the provisions of this Section 4.4 of this Agreement, the Authority shall, within ten (10) days after written request by the Redeveloper, provide the Redeveloper with a written statement, indicating in adequate detail in what respects the Redeveloper has failed to complete the Minimum Improvements in accordance with the provisions of the Agreement, or is otherwise in default, and what measures or acts it will be necessary, in the reasonable opinion of the Authority, for the Redeveloper to take or perform in order to obtain such certification. (c) The construction of the Minimum Improvements shall be deemed to be completed when the Redeveloper has received a final certificate of occupancy by the City. Section 4.5. Development Letter of Credit. Prior to the Authority's payment of the Land Writedown assistance to the Redeveloper, the Redeveloper ehall furnish to the Authority a Development Letter of Credit in an amount of 0841,500. Such Development Letter of Credit shall be for a term not less than one year from the date of its issuance and shall be in a form acceptable to the Authority. The Development Letter of Credit shall be available for payments to the Authority upon demand by the Authority in the event that there occurs an Event of Default which is not cured within the period prescribed in Section 9.2 of this Agreement or under the Note; and to secure the Redeveloper's Tax Increment guarantee pursuant to Section S. 1. In the event that the Authority melees a draw upon the Development Letter of Credit, the funds paid by the bank issuing the Development Letter of Credit to the Authority shall be retained by the Authority as its property to reimburse it for any damages incurred by the Authority as a result of Redeveloper's default. Upon completion of the Minimum Improvements by the Rodeveloper, the Development Letter of Credit shall continue to be available to the Authorityy to secure the Redeveloper's Tax Increment tee pursuant to Section t3.1. The Development Letter of Credit shall be available for payments to the Authority =11LU 0195-39vs-3-� 10 SCHEDULE D CO Certificate Of Completion The undersigned hereby certifies that Jerald J. and Mary E. Schoen have fully and completely compiled with the obligations under Article IV of that document entitled "Contract for Private Redevelopment," dated , 1991, between THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND Fug THE CITY OF MONTICELLO, MINNESOTA ("AUTHORITY") and JERALD J. AND MARY E. SCHOEN ("REDEVELOPER") with respect to construction of the Minimum I..,,,...:— :.As located on Redevelopment Property described in the attached Exhibit A in accordance with the approved construction plans and are released and forever Macharged from its obligations to construct under such above -referenced Article. Dated: 119. THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO, MINNESOTA IN THE PRESENCE OF: By By STATE OF MINNESOTA ) ) as COUNTY OF WRIGHT ) The foregoing instrument was acknowledged before me this day of , 18 by the of The Wiueing and e eve meat Authority In and for the City of Monticello. Notary Public STATE OF MINNESOTA ) ) as COUNTY OF ) The foregoing instrument was acknowledged before me this day of 9_ by Jerald J. Schoen and Mary E. Schoen, husbaZaand wife. Notary Public MUM waft -3 D-7 CONOTTTONAI. At lvdifiratio of CDrrultallry (Mill lit MOHTICELLO �lr.�ltiriuu•ilt of 1WiliMilil1 11111E eriilut Thin Certificate imitil purmant to the rtgniremtutf o f Section 300 o f the Uni form Building Code cerci f yitng that tit the time of intiauce ibis itrtirturt talo in eom plianre udtl, the variom o•tlinaureT of the City regultaing building conutrurtio► or nue. For the following: McCVunrculon Tnduatrlal Manutacturinp Butldlna Ot,ta•It� lµ,, 92-1937 (nail, B'2 _9'11+aCm�l�utlln� TIN Phe7MIG IIse 7nne t—� 2718 Chuntnut Avmmo Mout OvnciofIYd6Nnp_1jOEry Schoan A&hcn HIn--npu118.l1N._55A05 IluildhillAthhctt 200 Cholsoo Road Iordilf Monticallo. MN. 55362 III: Cory Andnra0n / II 1. upO0LL1 puei Fahruary 2. 1993 NOM WHINE SHOP AND OFFICE AREAS ONLY. SEE ATTACHED "ITEMS TO 09 ESCROWED" I. npit. rat m A CunarlC"aaa MUCK I ti7�t� i I'•�. � OAKWOOD INDUSTRIAL PARK ADDITION Items to be Escrowed Block 2, West 408.91 ft of Lot 3 (Bk 290-894), Barger Addition 1. Tree plantings and shrubs as per landscape plan. 2. Yard completed with seed/sod. 3. Final lot grading. 4. Hard surfaced driveway, parking lot, and loading dock driveway. b. Hard surfaced curb and gutter. 6. Hard surfaced sidewalk. 5 rn w\' ARTICLE Iv Construction of Minimum ImDrsovements and Public L. — Section 4.1. Construction of Minimum Improvements. The Redeveloper agrees that it will construct the Minimum Improvements on the Redevelopment Property in accordance with the approved Construction Plans and at all times prior to the Maturity Date will operate and maintain, preserve and keep the Minimum Improvements or cause the Minimum Improvements to be maintedned, preserved and kept with the appurtenances and every part and parcel thereof, In good repair and condition. Section 4.2. Construction Plans. (a) As of the date of this Agreement, the Redeveloper has submitted to the Authority and the Authority has approved Construction Plana providing for the construction of the Minimum Improvements. (b) If the Redeveloper desires to make any material changes in the Construction Plans after their approval by the Authority, the Redeveloper shall submit the proposed changes to the Authority. For purposes of this subsection, a "materiel change" shall mean any change which alters the exterior appearance of the Minimum Improvements or reduces the market value of such improvements upon completion. If the Authority approves the proposed change, it shall notify the Redeveloper in writing of its approval within ten (10) working days from the date of its receipt of the proposed change. If the Authority reasonably determines that such proposed change Is unacceptable, it shall so notify the Redeveloper in writing within ten (10) working days from the date of Its receipt of such proposed change, together with an explanation of the basis for the rejection. If the Authority fallshotto notify the Redeveloper of its rejection of any proposed change in the Construction Plans within said ten (10) working days from the date of its receipt of such proposed change, the proposed change shall be deemed approved by the Authority. Section 4.3. Commencement and Completion of Construction. Subject to Unavoidable Delays, the Redeveloper shall commence construction of the Minimum Improvements within thirty (30) days after the execution of tbis Agreement, or on such other date as the parties shall mutually agree. Subject to Unavoidable Delays, the Rodeveloper shall complete the construction of the Minimum Improvements by a^ • 14q --December .d , 1992. All work with respect to the Minimum Improvements to be � jp-ii-Y,vnstructed or provided by the Redeveloper on the Redevelopment Property shall be (Tae %o W., in conformity with the Construction Plans as submitted by the Redevelopor and S �,,rV approvod by the Authority or as revised pursuant to Section 4.2(b) . The Rodeveloper agneas for itself, its successors and assigns, and every successor in interest to the Redevelopment Property, or any part thereof, that the Redeveloper, and such successors and assigns, shall promptly begin and diligently prosecute to completion the redevelopment of the Redevelopment Property through the construction of the Minimum Improvements thereon, and that such construction shall in any event be commenced and completed within the period specified in this Section 4.8 of this Agreement. It Is intended and agreed that such agreements and covenants shall be covenants running with the land and that they shall, in any event, and without regard to technical classification or designation, legal or otherwise, and except only as otherwise specifically provided in the Agreement itself, be, to the fullest extent permitted by law and equity, binding for the benefit of the Authority and enforceable by the Authority against the Rodoveloper and its smnsii f •1 1 I0310-17 9 �J/ successors and assigns. Until construction of thetAt nlrm,m Improvements has been completed, the Redeveloper shall make reports, in such detail and at such times as may reasonably be requested by the Authority, as to the actual progress of the Redeveloper with respect to such construction. Sect�,fi '44. Certificate of Completion. (a) Promptlq after �n of the ARinimum I rovements In accordance with those provisions of th ment relatinj-M oo the obligations of the Redeveloper to construct the um Improvements (including the dates for beginning and completion thereof) , the AuthoririwillAurnish the Redeveloper with Certificate of Completion. Such certificationy etS�ou Authority shall be a conclusive determination of satisfaction and termination of the agreements and covenants in the Agreement with respect to the obligations of the Redeveloper, and its successors and assigns, to construct the Minimuzu improvements and the dates for the beginning and completion thereof. (b) The Certificate of Completion provided for in this Section 4.4 of this Agreement shall be in such form as will enable it to be r. rded in tate proper office for the recordation of deeds and other instruments pertelning to the Redevelopment Property. If the Authority shall refuse or fail to provide the Certificate of Completion in accordance with the provisions of this Section 4.4 of this Agreement, the Authority shall, within ten (10) days after written request by the Redeveloper, provide the Redeveloper with a written statement, Indicating in adequate detail in what respects the Redeveloper has failed to complete the Minimum Improvements in accordance with the provisions of the Agreement, or is otherwise in default, and what measures or acts it will be necessary, In the reasonable opinion of the Authority, for the Redeveloper to take or perform In order to obtain such certification. (c) The construction of the Minimum Improvements shall be deemed to be completed when the Redeveloper has received a final certificate of occupancy by the City. Section 4.5. [BLANK) am3mi 0190 -If O SCHEDULE D 104�� Certificate Of Completion The undersigned hereby certifies that Bradley D. and Mary A. Barger have fully and completely compiled with the obligations under Article IV of that document entitled "Contract for Private Redevelopment," dated , 1991, between THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO. MINNESOTA ("AUTHORITY") and BRADLEY D. AND MARY A. BARGER ("REDEVELOPER") with respect to construction of the Minimum Improvements located on Redevelopment Property described in the attached Exhibit A in accordance with the approved construction plans and are released and forever discharged from its obligations to construct under such above -referenced Article. Dated: , 19_ , THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY IN THE PRESENCE OF: OF MONTICELLO, MINNESOTA By By STATE OF MINNESOTA ) u COUNTY OF WRIGHT ) The foregoing instrument was acknowledged before me�tl s day of 18 by rousing and eve meat Authority in and for the City of Monticello. Notary Public OR w CONOTTIONAL !'I, T1'. ffiratr iii CUrr1Cpallry V it l f lit MONTICELLO �lr.��licluu►itt of 111Hli11kt 3I111yeriillu n is 4 Tbi! Cfrfi firruk iuukd hurunmt to the rkquirumniti of Section 306 of the Uniform Building k, Cock rkrfifyimg Matta the fink of ittunnrk tbiT itrurturk fat in romplinmrk witb the rrtriant ' ordimanrkr of the City rkgulufing buiklimg romitrurfion or me. For the following: h' listClatsifirdian Induatrlal Manufacturing Building 11d8.penadNu 92-1949 G10111, F-7 'IYI'QCautialim i►N Igio2:aie 3 Ilm7�%M_RC 1�`a• OwnoofWildl"a_ Brad and Mnry Bnraar Addicts IOS Mlnnlnfllppl Df1vn of IWuildtnBAJdtna 307 Chaleaa Rand laraldr Mnnticolln. MN, 55362 !•Y By: —Gary Anda.crnn �Tf`• �� [il Fohrunry 2, 1993 !\i+ " Ilnildina OGrlal Dale: o NOTEt OFFICE ONLY. BEE ATTACHED "ITEMS TO BE ESCRONF.D'f LETTER } +•, �, If. /Oai 111 A C01"Mua1111 PLACE C144" . +� t'ici�uN�'`��n;1�–�a a!Ft�7au.�y�u u ' +�.f�'jq�a-�� ?��u, ��t��',...��.f.Y`� µu a'a' �•��r � ra��_'n ��. '��. ". 1�;.��+•;'J. _,1�111� 11h11+\��a= 141d�,i��J "�,14�1r1/7�1,! Z�fa��uM'T °�*431�.%1"Y!.��le,,f ufi1+': I.o-, i iu:1 I— CONDITIONAL. C�rdifiirair 11f (Urrit ll llry V.IIIj ��l MONTICELLO , lZ1r.�u�i•Iiiu/iil of AIuilliii1111111 perlitill Tbi1 Ortifirene inued putrlrutrrt to the reiluiremenu of Sediorl 306 of the Uniform Building Curly rerti f yitig tbnt tit the time of ilsymare toil ,trarture uau in compliance with tl r various ordinnnrel of IN City regulrning building ronitrurtioll or rut. For the following: 111eCIuAfic111an Industrial Manufacturing Bllildinit 111dd,Pc,udlNv,92-1969 C;10u4, B-2 Trim Cal alarli 1 IIn rhe Zow 3 Ilb7wrle--N 0wnelofludW4,8 grad and Mary HarRar Adheu 105 Minninnlpot Dr1vn IAllldiap A"en__ 307 Chalnnn R 4 ardllr Monticalla. MN. 553¢2 -4ply fly= Cory Andaroon w/'" u LIi,b1111ri.1 Itdal January 9. 1993 NOTHI MACHINE SHOP ONI.T. BEH ATTAC11P.D ITEMS TO OH ESCROWED" LETTER. POST n1 A Cale11C110110 KAC[ ly�'NI 1, u BARGER ADDITION Items to be Escrowed Block 1, Lot 1, Barger Addition 1. Tree plantings and shrubs as per landscape plan. 2. Yard completed with seed/sod. 3. Final lot grading. 4. Hard surfaced driveway, parking lot, and loading dock driveway. 6. Hard surfaced curb and gutter. 6. Hard surfaced sidewalk. 7. Complete building exterior siding. 250 East Broadway P. O. Box 1147 Monticello, MN 55362.9245 Phone: (612) 295.2711 Metro: (612) 333-5739 Fax: (612) 295.4404 January 29, 1993 Mr. Tom Emery Wilson Tool International 12912 Farnham Avenue White Boar Lake, MN 55110 Dear Mr. Emery: On behalf of Mr. Ron Hoglund, Mr. Harvey Kendall and myself, we i wish to thank you for your time and hospitality given us on Tuesday, January 26. The Monticello Visiting Team was very impressed with the quality, management, and cleaniness of your company. The City of Monticello would be most proud to have Wilson Tool International select Monticello for their satellite facility. Our financial proposal will be faxed to you on Friday for your presentation to Mr. Jim Mlahok on February 1. We look forward to having Wilson Tool International visit the City of Munticello. If I can be of further assistance, please don't licoitate to call me at METRO 333-5739 or (612) 295-2711. I will contact you next week. Again, Ron, Harvey, and myself thank you. Respectfully, CITY OF MONTICELLO 011le Koropchak Economic Development Director cc: IDC Filo TAX INCREMENT FINANCE ESTIMATES WILSON TOOL INTERNATIONAL Tom Emery and Jim Mishek 12912 Farnham Avenue White Bear Lake, MN 55110 (612) 426-1384 FAX (612) 426-9134 BACKGROUND: This 26 -year old company is headquartered in White Bear Lake and employs 350 people, running three shifts. The company is looking to expand and construct an approximately 40,000 sq ft concrete manufacturing/office facility on 5-7 acres. Projections are 40 employees within three years or 85 employees within five years. Average wage is about $12.00 per hour for computer control operators, general machinist, and grinder operators. The company produces punch and die replacement parts. The company is looking at other Minnesota communities and in Wisconsin. Referred by Joel La Valle of Remmele and Maureen Steinwall of Steinwall, Inc. PROJECT: Building: 2,000 sq ft office @ $32.50 per aq ft 38,000 sq ft manufacturing ® $23.00 per sq ft Total 40,000 sq ft Land: 87,120 sq ft or 2 acres ® $.40 per sq ft 217,800 aq ft or 5 acres ® $.25 per eq ft Total 7 acres TOTAL ESTIMATED MARKET VALUE $100,000 ,0300 $ 3,000 NEW CAPACITY VALUE e '93 EST. TAX RATE o ESTIMATED TAXES $47,616 1.07212 $51,050.06 ORIGINAL CAPACITY VALUE o CAPTURED CAPACITY VALUE o ESTIMATED TAX INCREMENT o ADJUSTED TAX INCREMENT TIP PENALTY o PROJECTED PROJECT INVESTMENT 9 $928,000 .0472 $ 43,818 $ 65,000 874.000 9 939,000 $ 34,848 54.450 9 89,298 $1,028,298 J41 -28-D7, TM! Cw:42 1[:6[,5 IIB:. _ TEL 170:786-w0-1 n14_- PLUS cow- tim: TYP! Of DISTRICT: DATE OF lag : I:•RER z RATE: PROD= REF: TAX A CRDevr am ISSUE NYMCEL.LO JULY, 1997 8.00% kQL50N TOOL LAND ACQLaSITION 90, 000.00 FLA LIC U41a0MENTS (OFF S.ITHI STFEU MEN LWW sA auw sup $OIL CaWa .7I01NS/SITE MPROVEWDWS 30,000.00 LW -SITE UTZLIrIFS 10,000.00 PAWQM&A NDTAPIM 25,000.00 raarrrraanilaa &OrMAL 133.000.00 QOYMYOMY 71000.00 AL1Wa$rRA77rOV 85.000.00 R99TUrAL aaaaaaccBaraasr 187,000.W COMA LMM INrERW 30,000.00 DISOMAr 31000.00 TOTAL SM ISW raIIaaralsaam:=m $220,000.00 TAX DI ENNT FD"A CM ESTDOOE OF LOCAL OOUEMWENr ALIS FERIALTY CITY: KMIiEI.I.O SALES RATIO: 1.001 SCHOOL DIST: 1882 EST TAX RATE: 24.602 TYPE OF DIST: 6XN VWA dFLSON TAX CAP RATE: 1.072 ------------------------------------------------------------------- GAF,RIED M&MIFVLW S34XL. ADJUSTED -------------- TAX TADS TTF TAX Flip -DV TAX SALES O1I4LIMNO PFMLTY INCRE E.M PAYABLE ---ALL=ALL-------L'L-- G4PACVY FEREWAGE CAPACITY ---- 18ATT0 TAX CAPACITY TAX RATE PENALTY 1990 CZE =TSL---------- Moot 0.00 1.001 0.00 24.602 -- --0.00 1991 !00.001 0.00 1.001 0.00 24.602 0.00 1992 100.002 0.00 1.001 0.00 14.601 0.00 1993 0.00 100.002 0.00 1.001 0.00 24.601 0.00 1994 0.00 100.00% 0.00 1.001 0.00 24.601 0.00 1995 49,550.00 100.002 49,550.00 1.001 49,500.50 14.601 11,177.f2 1996 49,302.25 100.00% 49,302.25 1.001 49,253.00 24.601 11,116.24 1997 49,055.74 IOD.002 49,055.74 1.001 49,006.73 24.601 12,055.66 1998 48,810.46 100.002 48,610.46 1.001 48,761.70 24.601 11,995.36 1999 46,566.41 100.001 48,566.41 1.001 48,517.89 24.601 11,935.40 2000 46,323.58 100.002 48,323.56 1.001 48,275.30 24.601 11,875.71 2001 48.081.96 100.002 46,061.96 1.001 48,033.92 24.601 11,816.35 2007 41,841.55 100.002 47,841.55 1.001 47,793.75 14.601 11,757.26 2003 0.00 100.001 0.00 1.001 0.00 24.601 0.00 2004 0.00 100.001 0.00 1.001 0.00 14.601 0.00 2005 0.00 100.002 0.00 1.001 0.00 24.601 0.00 2006 0.00 100.002 0.00 1.001 0.00 24.601 0.00 2007 0.00 100.002 0.00 1.001 0.00 74.601 0.00 2008 0.00 100.002 0.00 1.001 0.00 24.601 0.00 2009 0.00 100.001 0.00 1.001 0.00 24.601 0.00 2010 0.00 100.001 0.00 1.001 0.00 24.602 0.00 2011 0.00 100.002 0.00 1.001 0.00 24.601 0.00 2012 0.00 100.001 0.00 1.001 0.00 74.601 0.00 JET- LNCRDv+r AFTER L= CF LDrAL OMMOP6W AIDS _-..^--=-------_------tea-'-=-___----____---_---____-------=_=__- TAX F- T "UW TAX DK783fM WAC 7V TOTAL DCRB4EMF "IC7. ACKNISTIWIVIE FOR Cffir RATE rN aDCNr FEMALTY ZAGEP6vT LLlOW g721/7CEAXP 4 1.072 0-00 ---0.00 -V -- -0.00 ---- -0.00 0.00 1.072 0.00 0.00 0.00 0.00 0.00 1.072 0.00 0.00 0.00 0.00 0.00 1.072 0-00 0.00 0.00 0.00 0.00 1.072 0_00 0.00 0.00 0.00 0.00 1.077 53,117-60 12,177.12 40.940.48 5,311.16 35,628.72 1.072 52,852-01 12,116.24 40,735.17 5,185.20 35,150.57 1.072 52,587.75 17.055.66 40,532.10 5.258.78 35,273.32 1.072 52,324.81 11,995.38 40,379.44 5,232.48 35.096.95 1.072 52,063.19 11,935.40 40,177.79 5,206.32 34,921.47 1.072 51,801.81 11.815.72 39,917.15 5,180.29 34,746.86 1.077 51,543.86 11,816.35 39,727.51 5,154.39 34,513.13 1.017 51,286.14 11,157.26 39.528.88 5.128.6 1 34,400.26 1.072 0.00 0.00 0.00 0.00 0.00 1.072 0.00 0.00 0.00 0.00 0.00 1.072 0.00 0.00 0.00 0.00 0.00 1.072 0-00 0.00 0.00 0.00 0.00 1.072 0_00 0.00 0.00 0.00 0.00 1.077 0.00 0.00 0.00 0.00 0.00 1.072 0.00 0.00 0.00 0.00 0.00 1.072 0-00 0.00 0.00 0.00 0.00 1.077 0.00 0.00 0.00 0.00 0.00 1.012 0-00 0.00 0.00 0.00 0.00 Baas. --===ac=ar__r_=- ==.==-cn_=__as= 995.729.13 8321,849.11 $41,757.82 $280,091.29 19J Bolo MA OATE: IAWARY 26.92 ANXW: 2"'000.00 cakk im: 143fRL810 Dln9W-S7 WE. 8.003 F%W W. f61IS1W TOOL DUE OF ISSE: 3[LY, 1993 -----_ _ = _- 11iDC1➢AL D[lSFM SLOFU S/ CLOMATM ' YEAR PKDCD'AL MEREST MOLAL I 05 84LA7LE LNOME 1EFTW St1811LS 1992 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1992 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1993 0.00 0.00 0.00 0.00 110,000.00 0.00 0.00 3D.000.00 1993 0.00 8.800.00 8.800.00 9.240.00 220,000.00 0.00 (9.2.0.00) 20.760.00 1994 0.00 8.800.00 81800.00 9,240.00 120,000.00 0.00 (9,240.00) 11,570.00 1994 0.00 8,800.00 8,800.00 9,240.00 210,000.00 0.00 (9,240.00) 1,280.00 1995 0.00 8,800.00 1,800.00 9,240.00 220,000.00 20,470.00 11,230.00 13,510.00 1995 201000.00 8,600.00 18.800.00 30,240.00 200,000.00 20,470.00 (9,770.00) 3.740.00 1996 0.00 8.000.00 8.000.00 8.400.00 700.000.00 70.368.00 11.968.00 15.708.00 1996 25,000.00 8,000.00 33,000.00 34,650.00 115,000.00 70,368.00 (14,187.00) 1,476.00 1997 0.00 7,000.00 7,000.00 7,350.00 175,000.00 70,266.00 17,916.00 14,342.00 1997 25,000.00 1,000.00 37,000.00 33,600.00 150,000.00 70,266.00 (13,334.00) 1,008.00 1998 0.00 6,000.00 6,000.00 6,300.00 150,000.00 70,164.50 13,864.50 14,877.50 1998 25,000.00 6,000.00 31,000.00 7,550.00 125,000.00 70,164.50 (17,385.501 2,481.00 1999 0.00 5,000.00 5,000.00 5,250.00 125,000.00 70,063.50 14,813.50 17,300.50 1999 30,000.00 5,000.00 351000.00 36,150.00 95,000.00 20,063.50 (16,686.50) 614.00 7000 0.00 3,800.00 3,800.00 3,990.00 95,000.00 19,963.50 15,973.50 16,581.50 7000 30.000.00 3,800.00 33,800.00 35,490.00 65.000.00 19,963.50 (15,526.50) 1,061.00 7001 0.00 7,600.00 7,600.00 7,730.00 65,000.00 19,863.50 17,133.50 18,194.50 2001 30,000.00 2.600.00 37.600.00 34,230.00 35,000.00 19,863.50 (14,366.50) 3.828.00 2002 0.00 1,400.00 1,400.00 1,410.00 35.000.00 19,764.00 18,294.00 22,171.00 2007 35,000.00 1,400.00 36,400.00 38,220.00 0.00 19,764.00 (18,456.00) 3,666.00 2003 0.00 0.00 0.00 0.00 0.01) 0.00 0.00 3,666.00 2003 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3,666.00 2004 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3,666.00 2004 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3."6.00 2005 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3,666.00 2005 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3.666.00 2006 J 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3,6".00 2006 2007 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3,6".00 3,6".00 2007 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3,6".00 2008 C 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3,6".00 2005 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3,666.00 2009 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3,6".00 2009 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3,666.00 101"N. 270,000.00 111,600.00 331.600.00 348,180.00 (770,000.00) 321,816.00 3,666.00 Jki-2s-'K F? I 10:25 I D: EDS INC. TEL 140: -7Ec-?QZ- 0150 FOS 1. Approximately 7 acres. 2. Flat, open, easily developed land. 3. Close access to Interstate 94. 4. Located In an Industrial Zoned area. S. Estimated land cost: $90,000. The City of Monticello has utilized a wide variety of different sources to provide incentive financing to encourage economic development. The City retains professional staff which can assist Wilson Tool International in accessing state and federal programs which would be applicable for their project. The City, in turn, is willing to provide assistance through these programs as would be requested and desired by Wilson Tool International. The City has reviewed the various financing programs that are available. There are many different alternatives whitrh could be utilized to provide an attractive financing program for Wilson Tool Internatiosul. We have, however, developed two options which we think beat utilize the programs and those which will provide the most attractive rates and terms for your company. Based on our assumptions and understanding of this project, we have idendfled the following financing structura: USES OF FUNDS: Land Acquisition (7 Acres) S 901000 Site Improvements 63,000 Construction (40,000 Square Feet ® 523/S.F.) 1,000,000 Equipment 1-000,OQQ TOTAL USES OF FUNDS: t JF41-29-'9S FRI 10:25 ID:BDS INC. TEL W:76E-90Z.1 S01 -MCPS OF FUNDS: Bank (ARM, 20 Years, 1st Secured) SBA 504 (8%, 20 Years, 2nd Secured) OMEF (596, 7 Years) Economic Recovery Orant (6%, 7 Yeah) Central Minnesota Initiative Fund (7%, 7 Yeah) City of Monticello Tax Increment Financing (No Payback) Equity TOTAL SBA SOURCES OF FUNDS: Bank (Average 9.0%) SBA 504 OMEF Economic Recovery Orem Centre! Minnesota Initiative Fund TOTAL MONTHLY DEBT SERVICE: TOTAL ANNUAL DEBT SERVICE: SOURCES OF FUNDS: Bank (Variable Rate, 20 Year Amortization, In Secured) OMEF (596, 7 Years) City of Monticello Tax Increment Financing Equity TOTAL CONVENTIONAL SOURCES OF FUNDS 0150 POG $ 815,000 720,000 100,000 250,000 50,000 155,000 65.000 $2,155-000 7,330 6,022 1,413 3,652 $19,172 $230,064 $1,500,000 100,000 155,000 400.000 �d Jai -_T -"K FF..1 10:_7 ID:8D5 INc. TEL r0:«-90:54 0150 F07 DEBT SERVICE: Bank (Average 9.0`b) OMEF S 13,500 1.413 TOTAL MONTHLY DEBT SERVICE: $ 14,913 TOTAL ANNUAL DEBT SERVICE: $178,956 The following is an overview of programs that are available for use by Wilson Tool International. Several of these programs have been utilized in the development of the City of Monticello's proposal for your company. Additional programs could be utilized at the company's discretion. The Small Business Administration (SBA) can provide financing in conjunction with private lenders and can provide long-term, low interest, fixed rate financing. The maximum SBA loan amount is 5750,000, or 40 percent of the total project cost, whichever is less. The private lender must inject at least 50 percent of the project financing. SBA terra are 10 and 20 years at a fixed rate of interest, which is roughly 1/8 to 1 percent above U.S. Treasury bonds of similar maturity. SBA 504 loans follow the private lender's first mortgage, retaining a second lien on the assets. Use of SBA 504 funds could be used in conjunction with the Small Business Development Loan Programs. For example, the SBA funds might be utilized to finance a major equipment purchase done in conjunction with the project. Funds are available for any fixed asset acquisition, including land, building, and equipment. The most recent interest rates for the SBA 504 financing is approximately 8 percent. Soft costs and/or Insurance costs aro less than the Small Business Development Loan Program. The Minnesota State Legislature has created Tax Increment Financing as a locally controlled source of financing for housing, redevelopment, and economic development projects. HOUSING AND REDEVELOPMENT AUTHORITY City of Monticello TAX INCREMENT FINANCING POLICY Program Purpose: The Monticello Housing and Redevelopment Authority will utilize Tax Increment Financing to support the community's long-term economic and housing goals. Policy Considerations: The HRA will analyze and evaluate Tax Increment Financing proposals based upon the following policy considerations. Each project shall be measured against these considerations and the project's value shall be determined, based upon meeting these considerations. (11 The project shall be consistent with the City's Comprehensive Plan. ;2) The project shall demonstrate long-term economic and/or housing benefits to the community. (3) The project shall create and/or retain employment for Monticello residents. A, The project shall increase moderate priced housing options for area residents. . T�N The project shall facilitate the redevelopment or elimination of •substandard• or 'blighted" areas as determined by the HRA. (61 The project shall facilitate the •clean-up' of environmentally unsound property. (7) The project shall provide additional public funding for public improvements including utilities and/or park development which would not otherwise be available. (8) The project shall be deemed to promote additional desired •spin-off• development. POLICY GUIDELINES (1) Tax Increment Financing will be considered for use in economic development, redevelopment and specialised a housing projects. The standard level of assistance for projects shall be as follows: Oq L %-3 - rl I,- �% 0k^ h0 C 1- ka.-I PUBLIC NOTICE Pursuant to the provisions of Minnesota Statutes 471.705, a special meeting of the MONTICELLO ROUSING AND REDEVELOPMENT AUTHO%Thereby scheduled for the following time, date, and place: TIME: 7:00 p.m. DATE: Thursday, February 4, 1993 PLACE: Monticello City Hall, Council Chambers 250 East Broadway SUBJECT:' Regular monthly agenda. THE HRA MEETING WAS RESCHEDULED FROM WEDNESDAY, THE 3RD OF FEBRUARY TO THURSDAY. THE 4TH OF FEBRUARY BECAUSE OF A LACK OF QUORM. 1 IN Hoots do CRAvm ceeseeaea wems.xxa,raxo�i,exr..moxs /!O •�anuary 19, 1?a °_NVOICc S dOE72 MN 190: 1 CITY OF MONTICEL_4 G neral P G BOX 1147 MOP.' IC =LO MN 3'3di—iiC3 F:r Ail Lajas Services Frem November 13, 199: 7hru December 31, 1992 As Fel!cros: 11/13/92 SJB Meet with citq staff and Mark RvFP re 2.00 tax increment financing in general Total Services: s2+'� •:�: Name Hours Rets Amount Stephen J Dubul 2 00 110.00 240.00 Total Servie*x And Disbursements: m ee I whenpenxHI e,len o.owd daete,dpwd *ard-, Offod0flOPM +of Wb a �r,� C..4v\. 6,10.lcdzj q�kl� MARKET FEASIBILITY ANALYSIS The following defines the analysis that will be done for the assessment of the demand for congregate housing and assisted living units for seniors in your market area. The primary and secondary market areas for the project will be defined based on data collected about the area regarding travel patterns for use of retail and health care services in the area. Information about the current patients/residents of your facility will also be analyzed in defining the market area. The demographic and sodo•economfc data that Impacts the potential need for congregate housing/assisted living alternatives for seniors will be completed. This includes assessing the existing and projected population for the target market as well as living arrangements and income levels. Our firm has on- line access to a national data base system which carries population statistics for 1992 and 1997 for any area in the United States, and the system enables us to develop detailed Income and economic data regarding the senior population In the given market area. Any type of geographic base can be used for the data, Including a geographic area defined by streets and highways rather than cities, townships or counties. This data forms the basis for demand projections, and the data source has consistently been accepted by financial organizations. Because of the detailed age breakdowns available through the system, we will be able to provide refined estimates of the number of older adults with limitations In activities of daily living likely to necessitate their moving from more Independent living arrangements. The detailed household Income data for the current year and projected for We years also enables us to determine the numbers of persons who have the potential to pay privately for this option and the number that will be dependent on forms of public assistance. A complete inventory of similar projects in and new the market area will be developed. The inventory will include the name and location of the project, unit sizes, rental/ownership structure, number of units and completion date, unit features, structural type, e.g., number of stories amenities, services required and/or available, parking facilities, age restrictions, other special features, and market history. In addition, the consultants will personally visit the potentially competitive projects to complete an on site assessment. Because the development of congregate housing/assisted living units Is relatively new in the market place, the inventory will include analysis and description of assisted living units that have developed in as similar an area as possible to define. The competitive analysis will address other nursing homes and subsidized housing projects in the area as well as other potential competition based on the project definition. A part of our inventory development Includes discussing with others in the market area, their plans for development in the future. Projections for demand, timing of entry into the market, and strength of alternative sponsors will be Important In defining a viable project. The nursing home inventory will Include examination of data regarding rates and levels of care for nursing homes in the area, examining whether there are likely to be older persons in nursing homes who would choose congregate housing/assisted living as an option if available in the market area. An inventory of community-based services available to the elderly living In their own homes will also be completed. This Inventory is used to assess the support system that exists for seniors living in their own homes, which will influence their readiness to consider congregate housing/assisted living. In addition, the support system will determine the 'draw' to the area from outlying areas for seniors. A mete definition of housing program and service options will be defined for the senior marketplace. In addition to a definition of the continuum of housing programs that exist or are developing with service optics, the various types of ownership/(ee structures will be defined. The definition wtil include relationships with what Is developing in the national and local marketplace. This definition of options win be used as a base for exploring the feelings of area seniors about various options, when the consumer research is completed. This Y411 edso provide date for the owners to consider in determining the type of options or structure that may be most beneficial from the owner's perspective. A series of key Informant Interviews will be conducted, focusing on persons In the market area who have extensive contact with seniors and senior organizations. The purpose of the Interviews will be to assess the current habits and attitudes of older persons in the market area, the reactions to the potential for development of congregate housing/assisted Ihdng, and the feelings about the proposed sites for development. Based on known research related to location of various types of senior housing and services, an identification of the strengths and weaknesses of the proposed site, from a marketability perspective, will be completed. Based on the foregoing analysis, an identification of the potential feasibility for the proposed project will be defined, Demand projections will be completed to determine the number of units feasible In the market area and expected absorption rates. This analyst will include a program definition for the project Identifying the likely elderly market segment that should be pursued. This definition will be related to the socio4emographic analysis, current local and national trends, and the competitor analysis. Our projections focus on the total demand for alternative housing and nursing home care among the residents of the area, to determine what segment of that market can be served by congregate housing/assisted living. Visits to market rate projects in the area will enable us to determine the segments of the market that are being served, and project the likelihood of your project attracting persons to your potential development of congregate housing/assisted living. The demand projections will address both primary and secondary market area demand. The project definition will address size of the project as well as fee structures that can be supported and are likely to be accepted in the local market tf It appears that there is a market for congregate housing/assisted living, we will then recommend that additional consumer research be done prior to a project being developed. The decision to proceed with Phase 11 Is at your dismetion. The consumer research will be a survey of older persons potentially eligible for the proposed development and/or a series of six focus groups.