HRA Agenda 04-07-1993AGENDA
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, April 7, 1993 - 7:00 p.m.
City Hall
MEMBERS: Chairperson Al Larson, Vice Chairperson Ben Smith, Lowell
Schrupp, Everette Ellison, and Tom St. Hilaire.
STAFF: Rick Wolfsteller, Jeff O'Neill, and 011ie Koropchak.
1. CALL TO ORDER.
2. CONSIDERATION TO APPROVE THE MARCH 3, 1993 SDA MINUTES.
3. CONSIDERATION TO ADOPT A RESOLUTION FOR MODIFICATION OF THE
REDEVELOPMENT PLAN RELATING TO REDEVELOPMENT PROJECT NO. 1,
THE MODIFICATION OF THE TIF PLANS RELATING TO TIB DISTRICTS
NOS. 1-1 THROUGH 1-14 AND THE APPROVAL AND ADOPTION OF THE TIF
PLAN FOR TIF DISTRICT NO. 1-15, ALL LOCATED WITHIN
REDEVELOPMENT PROJECT NO. 1.
6. CONSIDERATION TO REVIEW AND ACCEPT THE PRELIMINARY DRAFT OF
THE PRIVATE DEVELOPMENT CONTRACT BETWEEN THE HRA AND STEPHEN
P. AND JOAN M. BIRKELAND, JR. (CUSTOM CANOPY).
8. CONSIDERATION OF AN UPDATE ON THE GUARDIAN ANGELS FOUNDATION
SENIOR HOUSING PRESENTATION.
6. CONSIDERATION TO REVIEW THE POTENTIAL TIF DISTRICT SURPLUS
FUNDS UPDATE.
7. CONSIDERATION OF AN UPDATE ON THE MHFA AND REDISCOVER
RICHFIELD PROGRAMS.
8. CONSIDERATION OF PROSPECT UDPATES.
9. OTHER BUSINESS.
10. ADJOURNMENT.
MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, March 3, 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: Rick Wolfs teller, Jeff O'Neill and 011ie
8oropchak.
GUEST: Brad Larson, Metcalf & Larson; Skip Sorensen,
JJS Architects; and Mike Schoenecke r,
Advantage Marketing.
1. CALL TO ORDER.
Chairperson Larson called the HRA meeting to order at 7:00
p.m.
COFSIQERATI0,1 J'0 HEAR SIENIQ$ 1L0USZJJG DBVELO?09FT 1PROJEC$
C0PCEPg AS PREPARED AND PRESENTED BY BRAD LARSON AND SKIP
SORENSEN .
Mr. Brad Larson presented background information to the HRA
members referencing hie previous experience in senior housing
development and of his conversation with the local Hospital
District who expressed an identified need; howeve r,
uncor►firmed need for congregate or assisted -living senior
housing. Mr. Brad Larson plans to make a concept presentation
to the Hospital Board in March.
Under the Farmers Home Administration (PmHA) Program, the
qualifying annual moderate income for singles is 827,000 and
for couples is 830,000. Low -moderate income applicants
receive priority over above -moderate income applicants;
however, once a resident no one is evicted. One bedroom uni to
are SBO eq ft and have a value of less than 840,000 per unit
for land and building. Subject to a market study, the
proposed 40 unit three-story congregate senior housing
facility would consist mostly of one -bedroom units with
kitchens. The facility would be served by a bell system to
the emergency room, an on-site caretaker, and an elevator.
The 6,000 eq ft commons area, 20% of the gross base, would
cone Set of a community, dining, and warming -kitchen room and
a laundry room on each floor. Additional services are add-on
costs.
Mr. Brad Larson reported that the Broadway Square, River Park
View, Ridgemont, and Cedarcrest subsidized -senior housing
apartments are full.
HRA MINUTES
MARCH 3, 1993
The site proposed by Mr. Brad Larson requires purchase and
demolition of the three structures to the west of the Hospital
District Ambulance building along East Broadway. With the
anticipated purchase/demolition costs and FmHA site appraisal
of $100,000, Mr. Brad Larson anticipates a financial site gap
of $180,000. Projected annual tax increment is $25,000 on the
proposed $450,000 senior housing land and building. Time -line
for application, funding, and construction Is two years. Mr.
Brad Larson would need a letter from the HRA verifying secured
site purchase options. Mr. Brad Larson indicated there would
be no relocation costs and requests control of the demolition.
An FmHA appraisal is also necessary.
The group looked into the future and the potential of a
Monticello Senior Campus at the proposed site. The campus
would include a new senior center and additional market -rate
and/or subsidized senior housing facilities. The area
identified was to the east of Dayton Street between East
Broadway and East River Street. Mr. Brad Larson suggested the
HRA purchase the ambulance building and relocate it to the
east of the Monticllo Clinic. Brad accepted the HRA's request
to inquire of the acquisition costs associated with the
properties identified for the potential senior campus. Mr.
O'Neill indicated that the PZ -M zoning was appropriate.
The NRA thanked Mr. Brad Larson, Sorensen, and Schoenecker for
their impressive presentation. The HRA elected not to endorse
a developer at this time in order to honor its invitation and
hear a presentation by the Guardian Angels Foundation.
Koropchak informed members that the Foundation, a non-profit
organization, does pay property taxes at a lower -rate similiar
to a limited -partnership; however, a non-profit organization
does not pay income tax. The Guardian Angels Board of
Directors will meet on March 24 and review the HRA's
Invitation for a presentation. The HRA was encouraged by the
local Hospital District's interest to provide services to a
proposed senior facility. Mr. Brad Larson indicated the
Foundation was a fine, well-run organization; however, stated
it is ruled by a Board.
HRA recommended a letter be sent to Mr. Brad Larson stating
their appreciation of his time and that the HRA was very
impressed with his presentation and concept. Additionally,
since the developer indicated the proposed senior housing
project would cashflow, the HRA wanted to be on public record
as viewing the project as viable. The City Council Is be
advised and invited to the next presentation.
Page 2
HRA MINUTES
MARCH 3, 1993
3. CONSIDERATION TO APPROVE THE FEBRUARY 4. 1993 HRA MINUTES.
Tom St. Hilaire made a motion to approve the February 4, 1993
HRA minutes. Seconded by Ben Smith and with no additions or
corrections the minutes were approved as written.
CONSIDERATION TO,ADOPT A RESOLUTION AUTHORIZING ?REPARATION OF
TAR INCREMENT FINANCE PLAN FOR ECONOMIC DISTRICT NO. 1-15 AND
REOUESTING CITY COUNCIL TO CALL FOR A PUBLIC REARING (Custom
Canopv) .
The HRA agreed to Mr. O'Neill's suggestion that the annual
$5,000 pay-as-you-go TIF assistance be increased to $6,000
annually if the completed project consist of a more extensive,
greater than required in I-2 zoning, landscape treatment along
Fallon Avenue and/or consist of a 50% contrasting exterior -
wall material treatment on the Fallon Avenue and Dundas Road
sides of the proposed metal facility. The increase was
suggested as an incentive for the developer, thereby,
encouraging an aesthetically -pleas Ing transition from the I-2
to BC zoning across the street. Mr. Pelstring's projections
indicated an annual tax surplus of $3,600 after the
Administration Expense, TIF Penalty, and TIF payments were
deducted.
Ben Smith made a motion to adopt the resolution authorizing
preparation of the Tax Increment Finance Plan for Economic
District No. 1-15 and requesting the City Council call for a
public hearing. Said public hearing date to be April 12,
1993. Tom St. Hilaire seconded the notion and with no further
discussion, the motion passed unanimously.
CONSIDjEpATX0K__Z0 RgyLgW JUOFM16 _I0y ON THE RICHFIELD
jtEDISCOVER CONCEPT AND TO AUTHORIZE FURTHER DIRECTION,
At the February 4 HRA meeting, Koropchak reported on the
Richfield Rediscover Program stating the HRA markets and
offers to purchase substandard homes at fair market value,
demolishe the homes, and sella the land at fair market value
to an interested developer. The developer agrees to construct
a new home based on Richfield's HRA requirements and the home
Is made available to first-time home buyers. The Monticello
HRA requested additional information.
On February 12, Koropchak received the additional information
from Mr. Bruce Nordquist. And on February 16, Koropchak
mailed HRA members a copy of the Richfield -Rediscover General
Page 3
HRA MINUTES
MARCH 3, 1993
Program Summary, Building Sites Available, Program Process
Summary, List of Interested Builders, and Marketing Brochure
for review.
Mr. Nordquist indicated his willingness to meet with the
Monticello HRA. The Richfield Rediscover Program is located
within a 1990 created Redevelopment or Housing District
project area.
The HRA requested further research on marketing costs and if
the concept applied to rental unite prior to any HRA decision
or a visit from Mr. Nordquist.
6. CONSIDERATION TO REVIEW INFORMATION ON THE MINNESTOA HOUSING
FINANCE AGENCY PROGRAM AND TO AUTHORIZE FURTHER DIRECTION.
Based on the MRA's February 6 request for further information,
Koropchak reported that the Minnesota Housing Finance Agency
(MHFA) funding application deadline for the Minnesota City
Participation Program (MCPP) was April 15, 1993. The MHFA
sells mortgage revenue bonds on behalf of local governments to
assist them in meeting locally identified housing needs.
Under the program, local governments may adjust income and
house price limits and implement other administrative
requirements. For Wright County, the maximum adjusted gross
household income for newly constructed homes is 938,500 and
for one, two-family existing homes is $34,500, and the maximum
acquisition cost for newly constructed one -family, existing
two-family homes Is $95,000 and for one -family existing homes
Is $85,000. The program is for first-time home buyers with
interest rates of approximately l% to 1.5% below market
mortgage interest rates.
After completion of MHFA application for funding, the program
requires very little administrative time as the committed
lending institutions services the first-time home buyer's loan
application and closing. In Monticello, Liberty Savings Is a
committed lender through the use of Wright County funds.
Koropchak reported that in the last year the HRA office has
received an increase of telephone calls inquiring to the
availability low -moderate housing. Additionally, two local
lending institutions expressed an interest in the program. As
stated last month, the program serves as an excellent public
relations tool, requires little administrative time, local
governments may set requirements, and the funds would be
allocated specifically for the City of Monticello.
Page 4
HRA MINUTES
MARCH 3, 1993
The HRA inquired of the cost, a modest processing fee of $100
to $600 for allotment size of $2$0,000 to $3,250,000,
respectively.
Mr. O'Neill suggested the program may not be as popular today
because of low market mortgage interest rates. The HRA was
not interested in the program as they saw no need. They
encouraged interested lending institutions to apply and pay
the processing fee.
7. CONSIDERATION TO REVIEW THE YEAR-END SUMMARY OF THE HRA FUND
AND TIF -DEBT SERVICE FUNDS.
City Administrator Wolfsteller reviewed the year-end summaries
with HRA members noting deficits in IXI District due to HRA
loan payback to city, Remmele District due to $55,000 excess
incentive, and Shingobee District due to preparation fee. He
would need to check on the reason for the Martle District
deficit. The HRA inquired of the dollars available for
spending? Mr. Wolfeteller stated his answer now is $135,093.
He would need to project the revenue and the outstanding bond
debt for each district by the life duration before stating
future spending dollars. The HRA requested this information
and requested to review the proposed annual HRA budget in July
prior to submission to the City Council.
Mr. Wolfet eller informed HRA members that the City's Liability
coverage was $1.6 million, renewed annually.
8. CONSIpERAT ION OF PROSPECT UPDAj;'ES:
a) Wilson Tool Company - The company has made no site
location decisions, Monticello remains in the running.
b) All -Temp Distribution - A commitment from Mr. John Holman
is based on the future availability of rail. A meeting
was held with the Hoglund family regarding the need to
develop public improvements.
c) Recreational Parte and Equipment- Koropchak reported she
had informed the company of the HRA's decision to assist
the project through the TIB pay-as—you-go method based on
the generated increment of the warehouse/ cat olog area
only. The company has made no decisions.
9. OTHER BUSINESS.
Next regular HRA meeting Is scheduled for April 7.
Page 5
HRA MINUTES
MARCH 3, 1993
10. ADJOURNMENT.
Al Larson made a motion to adjourn the HRA meeting, seconded
by Tom St. Hilaire. With no further business, the meeting
adjourned at 9:40 p.m.
011ie Koropchak, HRA -Executive Director
CPage 6
HRA AGENDA
APRIL 7, 1993
Consideration to adopt a resolution for modification of the
redevelopment Dlan relatinq to Redevelopment Project Plan No.
1 , the modification of the TIF plane relating to TIF Districts
Nos. 1-1 through 1-14 and the aooroval and adoption of the TIF
plan for TIF District No. 1-15. all located within
Redevelopment Prosect No. 1.
Reference and Background:
Through the adoption of the enclosed resolution, the HRA is
accomplishing four things. First, you are modifying
previously adopted plans: The redevelopment plan for
Redevelopment Project Plan No. 1 and the TIF plans for TIF
Districts Nos. 1-1 through 1-14. Next, you are approving and
adopting the TIF plan for TIF District No. 1-15. All these
plans are within Central Monticello Redevelopment Project No.
1. Lastly, you are requesting the City Council consider
adopting a resolution to modify and/or approve these same
plans.
Enclosed as supporting data is a copy of the TIF Plan for TIF
District No. 1-15 which is being created for Stephen P. and
Joan M. Birkeland, Jr., dba Custom Canopy. The plan should
comply the Redevelopment Project No. 1 objectives and TIF
guidelines. Highlights from the District No. 1-15 plan
follow:
1. Description of Project- 9,320 aq ft office/manufacturing
facility to be constructed in summer of 1993 and
completed by January 2, 1994. Increasing the local
employment base by 15-16.
2. Legal Description of Parcel - Lot 6, Block 2, Oakwood
Industrial Park.
3. Parcel in Acquisition - The HRA is not acquiring the
parcel ao per the legal advise of John Dean, Holmes 6
Graven and the Private Development Contract. Deb
Gustafoon, BDS, Inc., includes this because of the
bonding option listed within the Dlotrlct budget.
4. Signed Contract - The HRA and the Birkeland' a will be
executing a Private Development Contract and not an
Aaoeasmont Agreement because of the pay-as-you-go
assistance. Again, this le included becauoe of the
bonding option listed within the Dlotrict budget.
Page 1
HRA AGENDA
APRIL 7, 1993
5. The estimated Tax Capacity at project completion is
$10,990, the original Tax Capacity is $1,302, and the
estimated annual captured Tax Capacity Is $9,688.
6. An Economic Development District is created because the
project does not meet the requirements for a
redevelopment or housing district; however, in the public
interest the project results are an increase to the local
employment base and an enhancement to the local tax base.
7. District Duration - Ten years from approval of the plan
or a years from receipt of first tax increment, whichever
Is less.
S. Estimated Impact on Tax Jurisdictions - The impact
represents the captured net tax capacity and potential
taxes not received by the jurisdictions as it relates to
the "but for" test (XVI -4). The "but for" test means if
the project would not have occurred.
9. Cash Flow Assumptions - Tax Capacity payable 1995,
$10,990. Receipt of first full tax increment is 1995.
Original Tax Capacity is $1,302. Tax Capacity Rate is
107.327%. Calculations based on a zero percent (Ott)
valuation increase. Public improvements listed in
District Budget; however, not part of the Private
Development Contract.
10. District No. 1-15 Budget - Land acquisition, $48,000;
public improvements, $19,500; professional services,
$7,500; capitalized interest, $13,000; and discount,
$2,000 for a total of $90,000. Note, tho budgct was
structured to allow the City to issue bonds if necessary.
11. District No. 1-15 boundaries and adjustment factor.
After reviewing the plan, the HRA should consider taking
action.
8. Alternative Action;
1. A motion to adopt the enclosed resolution.
2. A motion denying adoption of the enclosed resolution.
3. A motion to table the item.
Page 2
HRA AGENDA
APRIL 7, 1993
C. Recommendation:
Recommendation is Alternative Action No. 1 as the plan
complies with the redevelopment plan objectives and TIF
guidelines. The motion should be subject to execution of the
Private Development Contract by the HRA and Stephen P. and
Joan M. Birkeland, Jr. on or prior to April 12, 1993.
D. Suonortina Data:
Copies of TIB District No. 1-15 Plan and resolution for
adoption.
Page 3
SECTION XVI
TAX INCREMENT FINANCING PLAN FOR
TAX INCREMENT FINANCING DISTRICT NO. 1-15
Subsection 16.1. Statement of Objectives. See Subsection 1.4 of the
Redevelopment Plan.
Subsection 16.2. The Redevelopment Plan. See Section I, Subsections 1.1
through 1.20.
Subsection 16.3. Description of the Project. The project, located within Tax
Increment Financing District No. 1-15, consists of the construction of an 9,320 square
foot office/manufacturing facility. This facility is to be constructed in the summer of
1993 and completed by January 2, 1994. The company currently employs I 1 people.
It is anticipated that 2-3 additional full-time positions will be created as a result of this
project.
Subsection 16.4. Parcels to be Included in Tax Increment Financing District
No. 1-I3. The following property is located in the City of Monticello, County of
Wright, State of Minnesota.
Lot 6, Block 2, Oakwood Industrial Park.
PID Number: 133-018-002060
Subsection 16.5. Parcels in AcaUkkion. The Authority intends to acquire the
property listed in Subsection 10.4, which property is located within Tax Increment
Financing District No. 1- 15.
Properties identified for acquisition will be acquired either by the City or the
Authority in order to accomplish public improvements listed in Subsection 1.11 of the
Redevelopment Plan hereof.
XVI -1 U
Subsection 16.6. Development Activity in Tax Increment Financing District
No. 1-15 for Which Contracts will be Sigma. 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. 1-15, a
Development and Assessment Agreement will be executed between the Housing and
Redevelopment Authority of Monticello and Stephen P. and Joan M. Birkeland.
Subsection 16.7. Other Specific Development Expected to Occur dip
Redevelopment Project No. 1.
(As specific development is expected to occur, it will be inserted into this Subsection.)
Subsection 16.8. Estimated Public Improvement Costs and Supportive Data.
See Subsection 1.10 of the Redevelopment Plan for estimated costs associated with
Redevelopment Project No. 1.
Subsection 16.9. 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 16.10. Original 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. 1.15 is estimated to be S1,302, based on the tax
capacity value of all taxable real property within Tax Increment Financing District
No. 1-15. Pursuant to Section 469.177, Subds. I 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. 1-15, reduction or enlargement of Tax Increment Financing
District No. 1-15 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. 1-15 declines below the original tax capacity value, no tax capacity value
will be captured and no tax increment will be payable to the Authority.
Subsection 16.11. Estimated Cawed 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- 15 at final completion will approximate S9,688. This estimated annual captured
capacity value is determined in the following manner:
XVI -2 U
Estimated Tax Capacity Value at Final Completion $10,990
Original Tax Capacity
Captured Tax Capacity Value'
$ 9,688
Please refer to Exhibit XVI -B for the year-to-year expected tax increment for
Tax Increment Financing District No. 1-15.
Subsection 16.12. Tvoe of Tax Increment Fonancing District. Tax Increment
Financing District No. 1-15, is pursuant to Section 469.174, Subd. 12, an Economic
Development District as described below:
"'Economic Development District' means a type of tax increment financing district
which consists of any project, or portions of a project not meeting the requirements
found in the definition of redevelopment district or housing district, but which the
authority finds to be in the public interest because:
(a) It will discourage commerce, industry or manufacturing from moving their
operations to another state; or
(b) It will result in increased employment in the municipality; or
(c) It will result in the preservation and enhancement of the tax base of the
municipality."
Subsection 16.13. Duration of Tax Increment Financing District No. 1-I5.
Pursuant to Section 469.176, Subd. 1, of the Tax Increment Financing Act, the
duration of Tax Increment Financing District No. 1-15 will be ten (10) years from the
approval of the Tax Increment Financing Plan, or eight (8) years from receipt of the
first tax increment, whichever is less.
Subsection 16.14. Proposed Development Analysis. Pursuant to
Minnesota Statutes, Section 469.175, Subd. 1(7), specific findings and analysis
relating to the proposed development in Tax Increment Financing District No. 1- 15.
Additional relevant documentation relating to the findings and analysis will be on file
and available for review in the City Administrator's office.
XVI -3 v
Subsection 16.15. Estimated Impact on Other Taxing Jurisdictions.
Test No. 1: The estimated impact on other taxing jurisdic-tions assumes
construction would have occurred without the creation of Tax Increment
Financing District No. 1-15. 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 occured
without the assistance of the City, the following estimated impact of Tax
Increment Financing District No. t-15 would be as follows if Test No. l (the
"but for' test) was not met:
IMPACT ON TAX BASE
Please refer to Exhibit XVI -B for the year-to-year expected tax increment for
Tax Increment Financing District No, 1-15.
XV14
Original Net
Future Net
Captured Net
Tax Base
Tax Capacity
Tax Capacity Tax Capacity
District %
Entity Payable 1993
Payable 1993
Payable 1993 Payable 1993
of Entity
Wright County $45,591.255
$1,302
$10,990
$9,688
.021% i
City of Monticello $15,489,640
$1,302
$10,990
$9,688
.06396
I.S.D. No. 882 518,174,450
$1,302
$10,990
$9,688
.05396
Hospital District $23,400,486
$1,302
$10,990
$9,688
.041% JI
IMPACT ON TAX
CAPACITY
MILL RATES
Entity
Gross Tax Rate 1993
Potential Taxes
Wright County
31.179
$ 3,021
City of Monticello
16.313
1,580
I.S.D. No. 882
57.150
5.537
Hospital District
2.685
TCITALS
107.327%
510,398'
Please refer to Exhibit XVI -B for the year-to-year expected tax increment for
Tax Increment Financing District No, 1-15.
XV14
Subsection 16.16. Cash Flow Assumptions and Analyy;g.
A. Future Tax Capacity. The estimated future tax capacity of Tax Increment
Financing District No. 1-15 at final completion as determined by the City
Assessor is $10,990, payable 1995. Please refer to Exhibit XVI -B for the
year-to-year expected tax increment from Tax Increment Financing District No.
1-15.
B. ejected Timing. The payment of the first full tax increment from Tax
Increment Financing District No. 1-15 will be received by the Authority in
1995.
C. Original Tax Capacity. The County Assessor's records show the original tax
capacity of Tax Increment Financing District No. 1-15 to be 51,302 for taxes
in 1992 and payable in 1993.
D. Gross Tax Calzai:611 Rate. The gross tax capacity rate is 107.327 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 zero percent (0%) compounded annually.
F. 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 proceeds of the Bonds and tax increment revenue.
Subsection 16.17. Estimated Amount of Bonded Indebtedness. It is anticipated
that $90,000 of bonded indebtedness will be incurred with respect to this portion of
the Redevelopment Project.
Subsection 16.18. Tax Increment Financing Account for Tax Increment
Financing District No. 1-15. The tax increment received with respect to Tax
Increment Financing District No. 1-15 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 or 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 16.19. Modification of Tax Increment FinancingDistrict No. 1-15.
As of April 12, 1993, there have been no modifications made to Tax Increment
Financing District No. 1- 15.
XVI -5
Tax Increment Financing District No. 1-14
(As adopted August 10, 1992)
Land Acquisition M'500
Grading/On-Site Improvements 47.075
Subtotal $69,575
Administration 7.500
Subtotal $77,075
Capitalized Interest 11325
TOTAL ,S89.
The $69,575 of assistance will consist of a grant for $50,000 and a loan for $19,575.
(As adopted April 12, 1993)
Land Acquisition
548,000
Public Improvements
19.300
' Subtotal
567,500
Professional Services
7.500
Subtotal
575,000
Capitalized Interest
13,000
Discount
2.000
TOTAL
$90,000
The company will be receiving the tax increment financing assistance
on a pay-as-you-
go basis. However, the budget has been strucumd so that the City can issue bonds,
if necessary.
(As adopted November, 1982)
Subsection 1.11. Land Use. All new and/or existing development on land
identified on Exhibits 1-C through I -F as "property to be acquired" or "possible
acquisition" will be subject to the following uses and requirements:
Uses Permitted in Designated Areas.
I-36
EXHIBIT XVI -A
BOUNDARY MAP OF TAX INCREMENT FINANCING DISTRICT NO. 1-15
O
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EXHIBIT XVI -B
EXPECTED YEAR-TO-YEAR TAX INCREMENTS
RELATING TO TAX INCREMENT FINANCING DISTRICT NO. 1-15
AND TAX CAPACITY ANALYSIS
A. March, 1993
B. January 2, 1993
C. $1,302
D. January 2, 1988
E. 1.039
Year
1992/93
1993/94
1994/95
1995/96
1996/97
1997/98
1998/99
199912000
200012001
200112002
Base Adj.
TC Factor
$1,302 1.039
Establishment Date
Base Year Capacity Date
Base Year Capacity Value
Fifth Preceding Year Capacity Date
Annual Base Year Adjustment Factor
Adj. Future Net Cap Annual
Base TC TC TC Rate T1
$10,990 1.0733
$1,353
$9,637
$ 0
$1,406
$9,584
$10,287
$1,460
$9,530
$10,228
$1,517
$9,473
$10,167 !
$1,576
$9,414
$10,103 I,
$1,638
$9,352
$10,037
51,702
$9,288
$ 9,969
$1,768
$9,222
$ 9,897
$1,837
$9,153
$ 9,823
Average Annual Tax Increment: $10,064.
XVI -8
OR
EXMIIT XVI•C
DISTRICT CERTIFICATION FORM
Date Prepared: March 10, 1993
Name of District or Modification: Tax Increment Financing District No. 1-13
Date of City Council Approval: Aplil 12- 1993
ECONOMIC DEVELOPMENT DISTRICT CERTIFCATION
At the time of district creadon or modification. the (lowing conditions cooly:
X The project does not meet the requirements found in the definition of a
redevelopment district, housing district, or a mired underground space
development district.
X The project was created after August 1, 1979, and was designated arc
economic development tax increment district, as defined in Knnespta
$fig, Section 469.174, Subd. 12, because:
_X✓ a) It will discourage commerce, industry or manufacturing
from moving their operations to another state.
b) It will result in increased employment in the municipality.
X c) It will result in preservation and enhancement of the tax
base of the mu:ricipality.
SuMnincy documentation on file:
Land Use Plan Map
JL City Council Resolution
Project Objectives
Other:
This Form Prepared by: Business Development Services, line
Original Building Condition Data Collected by: N/A
f Documentation in support of District Certification is on file at the City offices.
XVI -9
i
APPENDIX B
Chronology of Resolutions
Establishing the Development Program,
the Development District, the Tax Increment Financing Plants,
and the Tax Increment Financing Districts
DEVELOPMENT DISTRICT NO. 1
TAX INCREMENT FINANCING DISTRICT NO. 1-13
I�tt= Anion
March 10. 1993 Letters sent to Wright County, Independent School
District No. 882, and Hospital District.
March 22, 1993 Resolution of the City Council calling for a Public
Hearing.
March 31/April 7. 1993 Notice of Public Hearing is published in the local
newspaper, calling for a Public Hearing on April 12,
1993.
April 7. 1993 HRA approval of the Modified Redevelopment Plan.
April 12. 1993 Resolution of the City Council modifying the
Redevelopment Plan for Redevelopment Project
No. 1 and modifying the Tax Increment Financing
Plan for Tax Increment Financing District No. 1-13.
Appendix B - 1
O
Commissioner introduced the following resolution,
the reading of which was dispensed with by unanimous consent, and moved
its adoption:
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 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 PLANS
RELATING TO TAX INCREMENT FINANCING DISTRICTS
NOS. 1-1 THROUGH 1-14 AND THE APPROVAL AND
ADOPTION OF THE TAX INCREMENT FINANCING
PLAN FOR TAX INCREMENT FINANCING DISTRICT NO.
1-15, 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. Rechals.
1.01. It has been proposed that the Authority modify, by increased
project costs, Redevelopment Project No. I, pursuant to and in accordance
with Minnesota Statutes, Sections 469.001 to 469.047, inclusive, as amended.
C:J
It has been further proposed that the Authority modify, by increased project
costs, the Tax Increment Financing Plans relating to Tax Increment Financing
Districts Nos. 1-1 through 1-14 and establish Tax Increment Financing
District No. 1-15 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.
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-I through 1-14 and Tax Increment
Financing Plan (the "Tax Increment Financing Plan") for Tax Increment
Financing District No. 1-15 (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 1-14 and the establishment of Tax Increment Financing District
No. 1-15 and the adoption of the Plans relating thereto.
1.04. The Authority hereby determines that it is necessary and in
the best interest of the City at this time to modify Redevelopment Project
No. 1, to modify Tax Increment Financing Districts Nos. 1-1 through 1-14
and to establish Tax Increment Financing District No. 1-15 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.
_2. 0
Section 2. Approval of the Modifie
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.
3.01. Subject to the finding, determination, and approval of the
Modified Tax Increment Financing Plans for Tax Increment Financing
Districts Nos. 1-1 through 1-14 and Tax Increment Financing Plan for Tax
Increment Financing District No. 1-15 by the Council of the City, the Tax
Increment Financing Plans for Tax Increment Financing Districts Nos. 1-1
through 1-15 are hereby approved by the Commissioners of the Authority.
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 forwarded to the
Council with the request that the Council hold a public hearing relating to the
adoption of the Plans for Redevelopment Project No. I and Tax Increment
Financing Districts Nos. 1-1 through 1-15.
-3-
Section 5. Filing of Plans.
5.01. The Authority shall cause the Plans, all as approved and
adopted, to be filed with the Office of Minnesota Department of Trade and
Economic Development.
Dated: April 7. 1993
Attest:
011ie Koropchak, Executive Director
(SEAL)
Chairman
-4-
0
HRA AGENDA
APRIL 7, 1993
4. Consideration to review and accent the oreliminary draft of
the Private Development Contract between the HRA and Steohen
P. and Joan M. Birkeland, Jr. (Custom Canor)v).
A. Reference and Backaround:
The HRA should review and accept the preliminary draft of the
Private Development Contract prior to execution by the HRA
Chairperson and thereafter Stephen P. and Joan M. Birkeland,
Jr. The contract which supports the TIF Plan defines the
development obligations of the Birkelands and the obligations
of the HRA.
The contract states:
1. The developers shall construct a 9,320 sq ft
office/manufacturing facility on Lot 6, Block 2, Oakwood
Industrial Park.
2. The project shall be completed in 1993 and fully
assessable on January 2, 1994.
3. The project shall comply with the City zoning and
ordinances, and the developer shall provide evidence of
approved development financing.
4. Upon issuance of the Certificate of Completion, receipt
of annual tax payment, and sufficient tax increment to
cover the Authority's liabilities; the Authority shall
pay the developers $5,000 annually over eight years
beginning in 1995. Or the Authority shall pay the
developers an additional $1,000 annually or the sum of
$6,000 annually if upon issuance of the Certificate of
Completion the project consist of more extensive, greater
than required in I-2 zoning, landscape treatment along
Fallon Avenue and/or consist of a 50% contrasting
exterior -wall material treatment on the Fallon Avenue and
Dundas Road eideo of the proposed metal facility.
S. No Letter of Credit or Assesoment Agreement is requirod.
6. The developers shall provide evidence of required
Insurances.
After reviewing the contract, the HRA should take action.
Page 1
HRA AGENDA
APRIL 7, 1993
B. Alternative Action:
1. A motion to accept and authorize execution of the Private
Development Contract between the Housing and
Redevelopment Authority and Stephen P. and Joan N.
Birkeland, Jr.
2. A motion to accept and authorize execution of the Private
Development Contract subject to noted modifications.
3. A motion denying acceptance and authorization of the
contract.
4. A motion to table the item.
C. Recommendation:
Recommendation is for Alternative Action No. 1, as the
contract outlines the previously approved criteria set by the
HRA.
D. Suaoortina Data:
Excerpts from the Private Dovelopment Contract.
Page 2
HRA AGENDA
L APRIL 7, 1993
Consideration of an uodate on the Guardian Anaels Foundation
Senior Housina Presentation.
A. Reference and Backaround:
In a conversation with Carol Mills, she reported that she and
Barb Schwientek would be meeting in the afternoon of April 2.
Carol's meeting on March 26 was with the Health Service
Committee. The Foundation's Finance Committee will meet on
April la and the Parent Board on April 21.
Carol requested I contact the HUD office regarding HUD
allocated dollars and date of the scheduled training session.
In conversation with Cindy Wenz, Minnesota -HUD office, they
anticipate notification of allocated dollars in mid-April for
project funding in 1993. Actual construction is from 18 to 24
months after funding approval. No date has been set for the
training session and the application is due one month after.
Additionally, Carol inquired if the HRA has earmarked any
particular sites for consideration.
It is my recommendation that the HRA extend the time and allow
the Foundation to make a senior housing presentation at the
HRA' a May S meeting becauoe of potential new options which may
result from the above scheduled meetings.
Enclosed you will find a copy of the HRA's letter to Mr. Brad
Larson, Mr. Brad Larson's letter to the HRA, and the
Information provided the City Council.
Page 1
250 East Broadway
P. O. Box 1147
Monticello, MN
55362.9245
Phone-. (612) 295-2711
Metro: (612) 333-5739
Fax: (612) 295.4404
Brad Larson, Attorney at Law
Metcalf 6 Larson
313 West Broadway
Monticello, MN 55362
Dear Mr. Larson:
March 10, 1993
On behalf of the Monticello Housing and Redevelopment Authority (HRA), I
thank you for your senior housing presentation of March 3.
The HRA was very impressed with your project concept and because the
presentation included a projected positive cashflow, the NRA is on record as
viewing a congregate or aeaieted-living housing concept as a viable project
to pursue. Prior to HRA endorsement of a developer or project, the HRA
elects to honor its invitation and hear the second identified developer's
presentation.
Additionally, Brad, it Is the HRA's understanding that you agreed to the
their request to research the potential interest and acquisition coats of the
properties from Dayton Street east adjoining the properties included in your
proposed project. Please advise if otherwise.
Again, the NRA was very impressed with your presentation and they appreciate
your interest in the community's future and welfare. In the meantime, if you
have any questions, please don't hesitate to contact me or one of the HRA
members.
Sincerely,
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
011ie Koropchak
NRA Executive Director
cc: Barb Schwientek, Hospital Administrator
HRA File
9I
7%%l�afJr it e.Ca.Jon
ATTORNEYS AT LAW
P0. am NB
313 Y"0-ad"Y
MO,Mto• 4Mhq>a1 48
JAMES 6. METCALF
TELEPHONE
BRADLEY Y. LARSON
(812) 2953232
METRO
(812) 4213993
FAX
Mr. Jeff O'Neill
(612) 2W3132
Asst. City Administrator
City of Monticello
P.O. Box 1147
Monticello, MN 55362
Ms. 011ie Roropchak
Economic Development Director
City of Monticello
P.O. Box 1147
Monticello, MN 55362
Re: Monticello Terrace Congregate Housing Facility
Dear Jeff, 011ie and the Housing & Redevelopnent Authority,
I would like to take this opportunity to thank you for the
opportunity to meet with you as staff and members of the HRA last
week and afford us the opportunity to present a proposal with
regard to what we have named as Monticello Terrace, the proposed
FmHA congregate housing facility. I know that I speak for our
architect, Skip Sorensen of Johnson, Sheldon & Sorensen
Architects, and our marketing consultant, Mike Schoenecker of
Advantage Marketing, in stating that we are excited about the
possibility and would look forward to working with you in doing
this facility.
Since you are entertaining another development proposal from
Guardian Angels on March 24th, I will do nothing further with the
hospital district pending that presentation.
Respectfully,
METCALF & N
By
HDA a Larson, Esq.
BVL:ds
cc: Monticello/Big( Lake Hospital
Att: Barb Schwienteck
JJS Architects, Att: Skip Sorensen
Advantage Marketing, Att: Mike Schoonecker
0
INFORMATIONAL ITEM
by 011ie Koropchak
This item is to inform the City Council on the progress of the
Housing and Redevelopment Authority's (HRA) Goal: To serve as a
facilitator and to investigate the need for subsidized or market
rate congregate or assisted -living senior housing. Congregate or
assieted-living fills the housing -gap need between independent
living and the nursing home. Standard services include one daily
meal, emergency call, and building security. Optional services
include transportation, 24-hour staffing, recreational activities,
laundry, housekeeping, etc.
In December, HRA members, Hospital Administrator Schwientek, and
Mayor Maus visited the Guardian Angels Senior Housing Campus in Elk
River. During the NAHRO Conference, the HRA Executive Director
visited senior housing projects in Eagan and Bloomington.
The HRA has identified two private developers who have expressed
Interest in the development and ownership of a senior housing
project. Both developers were invited by the HRA to make a
preliminary senior housing concept presentation. Developer "A"
made a presentation to the HRA last week and Developer "B"
anticipates making a presentation the end of March.
_ Based upon the presentation made by Developer "A", the project will
cashflow. Therefore, the HRA views the project as viable and
having merit. Also, the HRA Is encouraged by the Hospital
District's interest to investigate the possibility of providing the
standard and optional services or management necessary to complete
the congregate or aeslsted-living concept.
A key component of the project funding application is the
completion of a housing market study. In order to proceed with
funding, the study results must indicate a need for congregate or
assieted-living senior housing. A study has not been completed nor
Is a study currently undergoing; however, local assumptions are
that a need does exist within the geographic area served by the
local health care providers.
Site selection is another very important component, as any future
plans to develop a Monticello Senior Campus may be linked to this
site. It is anticipated that the proposed congregate or assisted -
living senior housing structure would be ready for occupancy no
sooner than 1998.
Again, I repeat, the HRA was encouraged by the results of the first
presentation. I will periodically keep you informed of the
project's progress.
(a)
Office of the City Adminismitm
250 East Br"adw-ay
Monticello, MN 55362-9245
Phone: (612) 295.2711 MEMO
Metro: (612) 333.5739
TO: HRA Members
FROM: Rick Wolfsteller, City Administ .Q j
DATE: April 1, 1993 ✓✓
RE: Potential TIF District Surplus Funds
Previously, the HRA members were given financial summaries of each of our tax increment
districts that outlined the revenue and expenditures for the year 1992 and the resulting cash
surplus (deficit) at year-end. While the financial summaries seem to indicate a substantial
cash surplus overall within our tax increment districts, committee members had questioned
how much of the surplus funds are actually available for other uses at this time.
As the summaries indicated, our 14 TIF districts which we keep track of had cash surpluses
totaling $469,294 as of 12/31/92. While this may seem like a substantial amount of money,
it cannot all be considered surplus in that the funds are not all available for other uses.
Most of the districts still have outstanding debt that has to be paid by either using future
Lax increment revenues from each district or by utilizing some of the cash surplus. Until
each district is actually ended and revenues aro no longer collectable and all debt payments
have been made, dic true surplus or deficiency will not be known.
To give you a better idea of the outlook in the future, I have put together another financial
summary which indicates the cash surplus at the end of the year for each district and the
estimated future revenue and expenditures that will likely occur for each of the remaining
years of die district. As this summary indicates, the HRA fund will have a substantial
amount of surplus when all of the districts are terminated totaling over $2,200,000. The
only problem is this will not occur for up to 20 years for sorno of Cho districts, while the
majority of them will terminate in another 6 or 7 years, In reviewing the report, you will
notice that only two of the districts tochnimlly have a surplus, if you consider a surplus an
e
Memo
HRA Members
April 1, 1993
Page 2
amount that is available and exceeds any future debt requirements. Those would be districts
#1 and #3 in that the cash surplus at the end of the year already exceeds any debt payments
that are due in the future. The rest of the districts, although having substantial amounts
of funds available, also have a substantial amount of future debt payments to make;
therefore, it is hard to consider the cash balance at the end of the year available for other
uses.
Another definition of a true surplus might be to look at whether future estimated revenues
will meet or exceed future debt payments for each district. Logic indicates that if the future
revenue is equal or exceeding future debt, the HRA could consider the present cash surplus
as available for other uses in that none of these existing funds will be needed for covering
future obligations. What it really comes down to is that it is very difficult to say at any
point in time how much surplus does the HRA really have when any of the districts still
have outstanding debt that needs to be paid in the future. Although estimated future TIF
revenues can be estimated, there is no guarantee that future revenues can't be altered
because of state legislative action, changing market, and/or tax capacity values of properties
resulting in lower tax revenues than originally planned. The only sure thing is that there
are debt payments to make, and those will not change unless for some reason we refinance.
Again, while it may seem the TIF funds have over $400,000 available at the end of 1992, it
should be pointed out that debt payments made in late January absorbed approximately
$200,000 of this surplus. Likewise, it is anticipated that the HRA will collect approximately
$350,000 in 1993 in TIF revenue, which again will create a larger cash surplus; but not all
of these funds can be used for other purposes.
If anyone has any questions regarding this report, or if you are more confused now then
before, feel free to give me a call. Possibly I could review this at the next HRA meeting if
desired.
U
POTENTIAL SURPLUS
TEF DISTRICTS
12/31/92
6 OF YEARS LEFT
TO COLLECT TIP
REVENUE
0 16 I I 10
70 4 6 7 7 7 7
0 6
owl GIST t 0157 7 DIST 4 QST 6
06T 6 OM 7 MOT 6 060 6 MST 10 DIST 11 OOT 12
01ST 17 OIST 14
W METCALF FSI Do n CONST.5 PAOMANCE
NAn700 NSP TAPPER ROa6ELE MARM AROM." 6NOIOOBEE
LOURBAN
LARSON
YACMOIE TOTALS
Ca6r1 Sure W
(cwto
12/31107 SISAl7 07.020 6160227 (675.631) 667.171 668.066 662.137 6060 657.901 (666.655) (15691 610.364 I$4,w37 611.561 $469.791
e671TAt46 FUME
TIF Rol -I
1923 A 667011 66 677•.010 677.616 M.070 61.776116 61457,00 61".767 60.076 614.706 6106.070 0.060 MOM, 60 1100.640 $4.240.540
19971 Govow 6o 6105.170 6541741 6166.101 6766.761 6524466 6176.70 $42.060 6300210 677).640 $17" 61053.7 /o 1107,550 67.49".050
Pat6401Y &K -A
(Om" eT Ero
all e.c11 Oa1m 616AIT SWASI 6157A06 (6117.711) 61.0",306 1016061 671.037 616.627 617173 (159.670 61A6o 114.2n (14.42) 66.653 63,31134
TIFOIST. WKI: 02 -Apr -07
HRA AGENDA
APRIL 7, 1993
Consideration an an update on the MHFA and Rediscover
Richfield aroarams.
Reference and Backaround:
MHFA - After the HRA's March meeting and decision not to
participate in the MHFA programs, Mayor Maus brought to the
attention of the City Administrator the enclosed article from
the LMC Cities Bulletin and wondered why "Monticello did not
participate in this program as we are promoting housing
developments". On March 18, the enclosed article appeared in
the Monticello Times reporting that Wright County was applying
for $2.5 millions of MHFA funds. Due to April 15 application
deadline date and the County's request for increased dollars
from a year ago, City staff recommends the HRA wait another
year and then reconsider the issue of applying for the first-
time home buyers dollars. If the HRA applied and allocations
were awarded, the allocations would be dust for the City of
Monticello.
Rediscover Richfield - Responding to the HRA's March
questions. This program is designed for ownership of single-
family homes and not for rental property. The program is
marketed through the general fundo of the City of Richfield
Community Development and the HRA. Pre -1990, the Richfield
HRA established twenty-five year Redevelopment and Housing
Districts therefore the tax increments help subsidize the
expense associated with the program. Through Federal funding
(Community Development Block Grants (CDBG]), poor quality
homes are purchased at fair market values, a 50 X 130 lot Is
sold for $27,500, and through an executed development contract
a home is constructed at a minimum new value of $90,000 and
ranging to $120,000. The estimated net tax on a $80,000
homestead in Richfield in 1992 was $1,066. The estimated net
tax on a $79,500 homestead in Monticello In 1992 was $850.
The program becomes lees attractive to a community like
Monticello because for the program to caohflow a community
must receive Federal funding. Monticello generally does not
qualify for Federal funding because of our property valuation.
Also, a housing market study would need to demonstrate a need
exist.
Page 1
Governor may propose Fraser names
Scallon to head
property tax freeze NLC committee
Gary Carlson
Governor Arne Carbon hinted
of a proposal to freeze property
taxes next year at his March 3 press
conference on the state budget. At
the March 1llouse Tax Committee
hearing. Commissioner of Revenue
Morrie Anderson indicated tial the
governor bad directed slue Depart-
ment of Revenue to draft legislation
for possible introduction laser in the
session.
Although there are no details
about bow such a leen world be
implementA the governor alluded
to the Wisconsin proposal that would
f eeze property tax raw. Such a
proposal could increase imquitin
among communities Bound the
state. It is clear that these eommmu
and possible proposal ate a response
to complaints about rising property
taxes and the property to increases
that could result from other aspects
of the govanori budget.
However, the idea of a frees
has been criticized as bad public
policy by nearly everyone invol veal
the proposal still could mos more
restrictions los local governments. It
also is another indicator of the
administration% lack of must and
respect for local governments.
Second lowest interest rates
available on home purchases
Minnesota's fust -time homebuyer
will he eligible for S37 million in
single family mortgage funding at the
second losers interest rates ever
offered in the program, the Minnesota
(lousing Finance Agency announced
on March 1. Con of the money will
be 6.65 percent. The Bunds will be
distributed through three programs
with the Minnesota City Participation
Program receiving S17 million, Use
Minnesota Mortgage Program, $30
million, and Build it Now! Mortgage
Program, S10million.
The Minnesota Mortgage Program
provides affordable mortgages to first
time homebuyers who have signed
purchase agreements, acceptable
credit, and meet the maximum
adjusted household Income limits.
Marcy can be used to purchase arta
asisting (tome anywhere In Minnesota,
or a new home nor to the seven -county
metro area.
The Build It Nowl Mortgage
Program is new and elan available to
first time buyers not in the seven•
county metro area. The Minnesota
City Participation Program is available
in 36 communities, including several
in the memo ares. They are: Anoka,
Aurin, Barnesville, Beltrami County,
Bemidji, Brainerd, Brooklyn Center,
Brooklyn Park, Buffalo, Columbia
Heights, Crystal, Dihvorth, Duluth,
Eden Prairie. Palk River, Faribnadt,
Gleacoe, Golden Witty, Hopkins,
Jackson, Ltnle Falls, Maple L.alce,
Mantull, Minnetooks, Morison
County, Northfield Otsego. Owatonna,
Richfield, Robbinsdak, Rochester, St.
James, Swift County, Todd County,
White Bear Lake, and Wright County.
The $37 million in financing
Benda is the Ian finding available
unless Congress extends the federal
mortgage revenue bond program.
National League ofcities presi-
dent Doo Frain, announced this week
that Minneapolis city councilmember
Tony Scallon will chair the NL.C%
Community and Economic Dewksp-
mem Policy Committee.
Scallion has been a member and
active leader on the committee, which
is one of five standing NLC commit-
tees. "This committee will be at the
forefront of NLC% efforts to make our
federal housing and community
devekspment programs an effective
Put of President Clinton's economic
recovery plan," stated Mayor Fraser.
"I am delighted to name Mr. Scallon to
led this effort"
Formulating NI.0 policy on
community dewtopment banks will be
another main topic area covered by the
committee which will also study the
Impact of superfimd clears -up laws and
national trade policy on local eco-
nomic development projects.
Tate PoII committee, comprised of
200 elected officials from throughout
the nation, will identify tpecific policy
iuues to be addressed in 1993. A
smaller peering committee, made up
of approximately 35 members of the
full committee, will submit recom.
merdaiionu at the annual Congress of
Cities in December.
After review of the Hull commit-
tee, policy amendments go to the NI.0
membership at the annual business
meeting. Once approved by the
league % membership, the NLC
National Municipal Policy serves as
the basis for the League's advocacy on
behalf of local governments.
The League is comprised of more
than 15,000 municipal governments
throughout the country.
i�
Page 6 - — _ - _ — - LMC Cities Bulletin
Co.
CO.
Helpbuyersfor hoarse
County begins program for first-time buyers
by John Holler
A year ego Wri County sought to
access a million do tars in gram funding
for a state -operated, first-time
homeowner pprrooggram. The county esu
awarded S9W,110o by the Mituttt sox Chy
Participation Program (MOPP), which
questioned the need for the fall
allocation.
At the Tuesday, March 9, matingg of
the Wrj County Board, the 199J
requests $2.3 million, a request the
county can tock up if the MCPP ques-
lions its ability to locate first -tithe
6orrueownero.
Special Projects Coordinator Brian
Hak brought live item to the board,
along with an analysis of teat year's
Initial allocation.
"At the time we were confident the
entire amaum would be accessed," Hat
said. "The allocation was exhausted with
12 days of the program's com-
meticenterd.
The application request antes that the
county's intent fa to encourage tartan
to become ilomeowaero la affordable,
single-funily homes. The Mels. award-
ing to the proposal, "will be availabte
to any qualifying person to be used to
purchase anyqualifying hoax."
Nine county bsnka are designated as
pan of theprogram (including Liberty
Savings in Monticello).
Heck said the county should kern In
six to eight weeks m to how much of
!52.5 million will he alhtcaled. The hood
on rd uwwsly approved wbmluing the
prap(sal, which includes a aro peratt
edminiatrulve appliesli(m fee.
In dher hems est the Tuesday, Much
9 agenda, the board:
AQproved (ts annual list of toed
restrictions for the period of
Courcy March IS
IS-
eeWMay Fingint
1113;y put up the restrictions in
early February. but mtuistert late wirer
temperatures allowed the posting to be
pished
Fiutgalaom asked that the sheriffs
department will anemp to strictly en
force violalias of the restrictions, whklt
Fingalson said would likely be posted on
Monday. March I5.
These Fewrictian arc the only weighl-
releted restricUoas allowed m county
roads other than instances of rrotfcesble
damage to a roadway.
•
Adopted a resolution officially
than the Great Riva RRee�$c�on�al
Lituary ( RRL) asst have a IwWhitds-
plua ane (17 of 24) nyjority approval
befoa increase. If 17
votes can t be' funding would
remain the seine as the pteviaw budget
year.
In exchange for approval to the resolu-
tion. the countyy would agree to pay Its
fWl ORR1�6utdgeted dlocubn cost, In -
MI of the ten percrnt Increase agreed
m prafously by the ewnty. rat uruourt
would be tubtrticted from reduction in
services GRRL has given in Wright
County since the budgd year began.
• Approved $107,000 is payments for
the conuntctlon of the jail/courthouse
aroiged cl,c=Ing
eontin : on approval by the
bbuudd
• Appointed dun trtanben to the coun-
ty's personnel board of appeals, which
hears employee complaints or
grievances. Tho tames of the three
:tubers on the dwlycreated board
rere drawn t( stagger the terms of the
new members. Bernard Kirecht wee cep
ppooiinted to a one-year term, Ralph
Doualas W a
year term, and Lsureen
Bodifn to a three-year term.
• Approved su Exposure Control Plan.
=led
provide Hepuitia B vaccina-
tioas to employees deemed at risk of
coming in contact with blood. The vac-
cination is Intended to as ase pravrn-
tative to potential contact with
bloodbone pathogens." which include
WSS re to people with hepatitis or the
AIDS vires.
In all, 171 employees—in the sheriffs
and human ze vIm menta—are
digubk to be vacrituster i one is needed.
At a cost of SI00 per vaccination, the
total mat could exceed 317,000 with IOD
percent compliance.
• ApprovedIrte.an annual contract with
Green View , an agency that empkrys
the elderly to provide maintenance ser-
vices at Beebe Lake Park, Owego Pork,
Pkarut aaLake Perk arid Fairhaven
Mill/Dun Hiuoricd Site.
• Appointed five members to the
Geographic Information Systems wb-
crmttnince. The OIS will work under the
Muzemerd Information systems (MIS)
commntee.
• Approved the annual report from the
Dam deparmrcnt and the surveyor's
• Authorized signatures to a new con-
tract with the 49erx Union, whose
employees went an strike in Pebruory.
1EQItar'a aw Jahn Nana oevaa o.a W 1Vd
Canty dot=. ftsimas to a pard Hla-
Ibrshlp la Iles eras wo" new ap.pata.1
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HOLMES & GRAVEN
Casryeeeo
4-7o ear., mb—p w Irr—m ueee
ra.er— eva:ame
March 15• 1993
INVOICE q 41352
Monticello HRA MN195:2
City Hall
250 E. Broadway
P.O. Bo: 83A
Monticello. MN 55362
Re: Schoen Redevelopment Contract
For All Legal Services Rendered Through February 26. 1993 As Follows
02/12/93 Phone call from O Koropchak re TIF 0.25
report and note to 9 Bubul
Total Services: 0.25 $31.25
Total Disbursements: 0.00
TOTAL FEES AND DISBURSEMENTS: 221x32
I dxtam, wdv penally of law
ow Irvo KLeum, ddm or deewd
V " ammne t nopmn
NZI.
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