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HRA Agenda 06-03-1993�- AGENDA MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY Thursday, June 3, 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. GUEST: Pat McCullough, Health Planning 6 Management Resources, Inc. 1. CALL TO ORDER. 2. CONSIDERATION TO APPROVE THE APRIL 7, 1993 HRA MINUTES. 3. CONSIDERATION TO HEAR PRESENTATION BY PAT MCCULLOUGH: SUMMARY OF THE COMPLETED SENIOR HOUSING MARKET FEASIBILITY ANALYSIS. 4. CONSIDERATION OF AN UDPATE ON THE MONTICELLO SENIOR HOUSING PROJECT. S. CONSIDERATION TO SELL THE DIRT -BERM FROM HRA LOT 5, BLOCK 3, !� OAKWOOD INDUSTRIAL PARK. 6. CONSIDERATION TO REVIEW CUSTOM CANOPY'S LANDSCAPE PLAN TO DETERMINE ANNUAL TIF ASSISTANCE. 7. CONSIDERATION OF AN UPDATE AND CONTINUED DISCUSSION ON THE RELOCATION OF BULK TANKS. 8. OTHER BUSINESS. 9. ADJOURNMENT. I HRA AGENDA JUNE 3, 1993 5. CONSIDERATION TO SELL THE DIRT -BERM FROM HRA LOT 5. BLOCK 3. OAKWOOD INDUSTRIAL PARK. A. Reference and Backaround. Mr. Prank Klein, Double "D' Construction & Excavating, inquired of the MRA's interest to sell the dirt -berm from Lot 5, Block 3, Oakwood Industrial Park. Therefore, this item appears on the KRA agenda for consideration. According to John Simola, Public Works Director, the price of black dirt ranges from $1.00 to 82.00 per cubic yard and the price of gravel is approximately 8.50 per cubic yard. I asked Mr. Simola if one of the public works personnel could walk the site to determine the type of soil as well as the topography. Although, I have not heard back from Mr. 91mola, prior city staff discussion lead to these recommendations: 1. Reserve the dirt -berm for a future developer and development of the lot. 2. If excess dirt is apparent, the City of Monticello Is Interested and has a use for it. Additionally, the HRA has the option to sell the dirt -berm. The HRA should briefly discuss the issue and direct the Executive Director to respond accordingly to Mr. Klein. HRA AGENDA JUNE 3, 1993 CONSIDERATION TO REVIEW CUSTOM CANOPY'S LANDSCAPE PLAN TO DETERMINE ANNUAL TIB ASSISTANCE. A. Reference and Backaround. As per the enclosed excerpt from the Redevelopment Contract between the HRA and the Birkelands, the HRA is to determine the TIP assistance, either 85,000 or $6,000 annually. This determination to be made by the level of landscaping and exterior pall covering provided in the development. Mr. Jeff O'Neill will be present to review the Custom Canopy landscaping plan with HRA members. ARTICLE III Tax Increment Assistance Section 3.1. Statement of Intent. The Redeveloper has represented to the Authority that it has acquired or entered into purchase agreements for all of the separate tracts of land which comprise the Redevelopment Property. The Redeveloper has fully informed the Authority of Its acquisition -,as together with the costa necessary to prepare the Redevelopment Property for redevelopment. The Authority has further considered the other public costa of redevelopment and the reuse value of the Pro rty. Based upon all such information and consideration, the Au�ho tv determi ea that a land writedown of $87,412.72 ("lend Writedown") is the necessary level of asaisteace necessary to permit redevelopment to occur on the Redevelopment Property. Subject to the provisions of this Agreement, the Authority agrees to pay the Redeveloper the land Writedown to assist the Redeveloper in the acquisition and preparation of the Redevelopment Property. It is the further intention of the parties that title to the Redevelopment Property shall not pass to the Authority by operation of this Agreement, and that this Agreement shall not be construed so as to vest or create in Ne Authority and right, title or Interest in the Redevelopment Property. The Land Writedown shall be paid to the Redeveloper as described below when all of the following conditions have occurred, but only if at such time the Redeveloper is not in default of any of its obligations under this Agreement: (a) The Redeveloper and the Authority having reviewed and approved title to the Redevelopment property; (b) The Redeveloper having submitted and the Authority having approved the evidence of financing required to be provided pursuant to Section 7.1; (c) The Redeveloper having submitted and the Authority having approved Construction Plane for the Minimum Improvements pursuant to Section 4.2; (d) The Certificate of Completion having been Issued. Section 3.2. Time and Amounts of Payment. Subject to the conditions in Section 3.1, the Authority shall pay the Land Writedown to the Redeveloper in accordance with the following conditions: (a) Payments are to be made In annual installments, without interest, beginning not later than December 31 of the year in which tax increment , based upon the full completion of the Minimum Improvements, is remitted to the Authority; (b) Payments shall be made only from Available Tax Increment. For the purposes of this Agreement, Available Tax Increment means tax increment received from the Redevelopment Property in any year In which payment to requited hereunder, lose an annual deduction of $1,08!.86, (c) No annual payment shall be made until the Authority has received assurances from the Redeveloper that the Redevolopor has paid to the City, in the year the Authority Payment is due, an amount equal to $2,426.58 which constitutes the City's service fee for the development; acsiH? W1oo-w (d) In no event shall the Available Tax Increment which is payable to the Redeveloper in any year exceed $8,428.59; (e) In the event that Redeveloper does not construct the landscape and site improv ate or exterior building treatment which have been'recommende4 pv the uill the provisions of this Section 3.2 and of Section 9.1 shall be modified to s w a Land Writedown payment of $59,412.72 and annual payments of not to exceed $7,429.59. =Stu? ongo•4o CK - 10 April 14, 1993 Ms. 011ie Koropchak Housing and Redevelopment Authority City of Monticello P.O. Box 83A Monticello, MN 55362 STATEMENT EstebIWiiiisi of 'T'IF'Dgid too. 1-15 Business Development Services, Inc. Initial project structuring with business; preparation of TIF , data; determination of project future values and preliminary TIF financial analysis; review and confirmation of TIF plan; distribution of documents to County and School Districts; preparation and pmentation to Planning Commission/City Council; and certification of district. TOTAL AMOUNT DUE r1IRRFNT OVER 30 OVER 60 SLYEBffi $3,950.00 TERMS: NET DUE UPON RECEIPT. 1.33% PER MONTH SERVICE CHARGE ON PAST DUE ACCOUNTS 4203 Lancaster Lano We Suite 1100 • MinneaFoW, MN 554419 Plan, 812/630.78!0 • Fax: 330.8221 HOLMES & CRAVEN CHAIMRD co re&" C—MYr��6, IfIr�b YO ' Tdwh— aN April 21. 1993 INVOICE # 41712 MN190: 40 CITY OF MONTICELLO Birkeland Redevelopment P O BOX 1147 Contract MONTICELLO MN 55362-9245 For All Legal Services From March 18, 1993 Thru March 31, 1993 As Follows: 03/18/93 JBD Phone call from 0 Koropchak re 0 25 32.50 Birkeland agreement Total Services: •632.3G Name Hours Rate Amount John B. Dean 0.29 130.00 32.50 Total Services And Disbursements: $33.1.50 � +due. is+dw p�ndly of kat nh e000uM, aWm a dssrnd is pia and coned od ro pen 4htsbssnp� a arms John B. Dean HOLMES & GRAVEN CesnitseD m ro e.r c.r., aar.ro.u~ W.—MUM CITY OF KMTICE 1 P 0 BOX 1147 MONTICELLO 194 95362-9249 May 18, 1993 INVOICE O 41938 MN190: 40 Birkeland Redevelopment Contract For All Legal Services From April 2. 1993 Thru April 30, 1993 As Follows: 04/02/93 JBD Office conference with O Koropchak re preparation of agroementi review materialsi phone call with 0 Karopchaki work on draft 04/05/93 JBD Finish preparation of development agreement 04/06/93 JBD Phone call with O Koropchak re revisions to agreement 04/08/93 JOD Phone call with J Aries re review of agreement 04/14/93 JBD Phone call with O Koropchak re status of agreement Name Hours John D. Dean 6.75 For All, Disbursements As Follows: Long Distance Phone Messenger Services Fait *dWs. udw Pw attr 01 low ow oft amm%ddm or dritwd d OldInd old Pon mws John B. Dean 2.00 260.00 2.50 325.00 ' 1.25 162.50 0.73 97.50 0.29 32.50 Total Services: •877. 90 Rate Amount 130.00 877.50 16.49 3.33 33.00 Total Disbursements: •52.54 Total Services And Disbursements: $930.34 MINUTES MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY Wednesday, April 7, 1993 - 7:00 p.m. City Hall MEMBERS PRESENT: Chairperson Al Larson, Vice Chairperson Ben Smith, Lowell Schrupp, Everette Ellison, and Tom St. Hilaire. STAFF PRESENT: Rick Wolfsteller and 011ie Roropchak. STAFF ABSENT: Jeff O'Neill. 1. CALL TO ORDER. Chairperson Larson called the HRA meeting to order at 7:03 p.m. 2. CONSIDERATION TO APPROVE THE MARCH 3. 1993 HRA MINUTES. Chairperson Larson requested that under agenda item 02, the name Mr. Larson be corrected to read Brad Larson or Al Larson, as appropriate. Ben Smith made a motion to approve the March 3, 1993 HRA minutes with the requested corrections. Tom St. Hilaire seconded the motion and with no further corrections or additions, the minutes were approved. 3. QQNS7.PERATZOLN TO ADOPT k MSO&UTION F9R.1}QDJFZCATa0N OF THE REDEVELOPMENT PLAV RFiL.ATIJLG TO )IEDEVLELO�jlEjiT FRQ�7F�CT NQs b i THE MODIFJ ATI0)7 0$ THE TIF PLANS RELATXRO TO 2rjF DZ.SYRZCT UgS., 1-I1HROUGH 1-14 AND THE APPROVAL AND ADOPTION OF THE TIF PLAN BOR TIF D1g7RaQT NO. 1-15. ALL LOCATED WITHIN M DEVELOP14ENT PROJECT N0, 1. Xoropchak reviewed the highlights of the plan for TIF District No. 1-15 being created for Stephen P. and Joan M Birkeland, Jr. Through the adoption of the enclosed resolution, the HRA would be approving this plan, and modifying the plane for TIF District Nos. 1-1 through 1-14 and the redevelopment plan for Redevelopment Project No. 1. The HRA determined that the District No. 1-15 plan complied with the TIF Guidelines and Redevelopment plan objectives; therefore, Everette Ellison made a motion to adopt the resolution for modification of the Redevelopment Plan relating to Redevelopment Project No. 1, the modification of the TIF Plans relating to TIP District Nos. 1-1 through 1-14 and the approval and adoption of the TIP Plan for TIP District No. 1- 15, all located within Redevelopment Project No. 1. The motion was subject to the execution of the Private Development HRA MINUTES APRIL 7, 1993 Contract between the HRA and the Birkelands on or prior to April 12, 1993. Seconded by Tom St. Hilaire and without further discussion, the motion passed unanimously. COFSIDERATION g0 REVIEW AND kCCEPT THE PRELIMINARY DFAFT OF THE PRIVATE DEVELOPMEYT CONTRACT BETWEEN THE NRA AND STBPEN P. AND JOAN M. BIRRELAND. JR. (CUSTOM CANOPY). Roropchak reviewed the Private Development Contract as prepared by Mr. John Dean, Holmes & Graven, with HRA members. A copy of the contract was provided to the developer6 and the developer's attorney. The contract which supporta the TIF Plan defines the development obligations of the Birkelands and the obligations of the HRA. Ben Smith made a motion accepting the terms of the preliminary draft of the Private Development Contract and authorized the HRA Chairperson to execute the contract. Seconded by Lowell Schrupp and without further dlecussion, the motion passed unanimously. 6. CONSIDERATIOF OF AN U�)ATE ON THE GUARDIAN ANGELS FOUNDATION SENIOR HOUSING PRESENTATION. Roropchak reported that since preparation of the HRA agenda and the meeting of April T between Carol Mills and Barb Schwientek, the HRA is being asked to consider authorizing the preparation of a senior housing market study, preparation to be completed by Pat McCullough. The completed study must meet both FmHA and HUD funding application requirements. Via Ms. Schwientek, Brad Larson was contacted and agreed to the preparation of a market study by Pat McCullough. The HRA Is being asked to authorize preparation of the study in order to meet the 1993 funding application deadlines. If either funding is approved, the HRA will be reimbursed for all or part of the market study fee. The study will be for both congregate and aesieted-living housing. An FmXA moratorium limits the maximum number of units for assieted-living to twenty-four; however, the moratorium does not apply to congregate housing. The January HRA minutes read that time for completion of Phase I is 6 to 9 weeks for an approximate cost of 05,600 and if warrantable, Phase II would be completed within another on- to -two weeks for an approximate cost of $3,500. Chairperson Larson reported that the Monticello -Big Lake Hospital District has expressed an interest as developers. Under that scenario, Carol Mille would act as a consultant, the Hospital Board would be the sponsoring board, and a Page 2 HRA MINUTES APRIL 7, 1993 community board (to be established) would serve as the non- profit organization. Potential site of interest is to the east of the Hospital District boundary. Chairperson Larson listed the three developer options as Brad Larson, Guardian Angels, and the Monticello -Big Lake Hospital District; however, he did not endorse, support, or recommend any one developer. HRA opinions varied on whether to or not to authorize the preparation of a market study. Tom St. Hilaire felt the HRA should act as a facilitator only and not claim ownership: authorization of a market study meant it becomes an HRA project. Ben Smith felt the HRA should put money on the table for the study or the project would be a "no go" in 1993. Everette Ellison agreed with Mr. Smith, saying the HRA should stop fishing and cut the bait. Both recognized the authorized HRA expenditure was a gamble. Lowell Schrupp suggested the HRA act on the authorization after the Guardian Angels presentation in May. Chairperson Larson said he generally endorses free enterprise; however, this time saw the need for the HRA to authorize the market study in order to meet required 1993 funding application deadlines. Ben Smith made a motion authorizing Pat McCullough to begin preparation of senior housing market study for assisted -living and congregate housing. The study must meet both the FmHA and HUD funding application requirements. The authorized fee to be expended from the TIP Surplus Fund. Everette Ellison seconded the motion and with no further discussion the motion passed. Yeas: Ben Smith, Everette Ellison, and Al Larson. Nay: Tom St. Hilaire. Abstention: Lowell Schrupp. The HRA endorsed no developer. The Guardian Angels presentation is scheduled for May 5, the HRA regular meeting. 8. COSIPP[jl)TJON TO REVIEW THE POTENTIAL TIP DISTRICT SURPLUS BUNDS UPDATE, Administrator Wolfeteller reviewed the enclosed TIP Surplus projections stating he calculated the surplus by taking the number of years remaining in each TIP District times its 1992 revenue. For the total projected revenues of 8489,294, the total annual debt -service is approximately 8200,000. The report was for HRA TIP District Nos. 1-1 through 1-16. Mr. Wolfeteller concluded that generally speaking, the HRA has between $150.000 to 8200,000 of spendable monies. Page 3 HRA MINUTES APRIL 7, 1993 7. CONS7DERATI011 OF AN UPDATE ON THE MHFA AND REDISCOVER RICHFIELD PROGRAMS. Koropchak reviewed the enclosed agenda information. S. CONSIDERATION OF PROSPECT UPDATES, All -Temp Distribution - A letter from NSP acknowledged their future rail needs. The interested buyer and sellers of the Hoglund property are to meet and negotiate land coats. Nilson Tool - The company has not made a ei to selection and Monticello remains in the running. 9. OTHER BUSINESS. None. 10. ADJOURNMENT. Chairperson Larson made a motion to adjourn the RNA meeting and Tom St. Hilaire second the motion. The RRA meeting adjourned at 8:13 p.m. Ops.:" 011ie Koropchak, Executive Director Page 4 HRA MINUTES JUNE 3, 1993 6. CONSIDERATION g0 HEAR PRESENTATION BY PAT MCCULLOUGH: SUMMARY OF THE COMPLETED SENIOR HOUSING MARKET FEASIBILITY ANALYSIS. Pat McCollough presented each HRA member with a copy of the completed Senior Housing study and outlined in detail its contents. The study indicated the unit demand for subsidized congregate is 23 units and assisted living is 10 units. The unit demand for market rate congregate is 31 units and assisted livng is 14 units. The area studied followed approximately the Hospital District boundaries with exception of Becker and Elk River. Since the 1993 HUD funding allocation for minimum units for frail elderly projects is •0, the Monticello demand projections would be "weak". Under the Farmer's Home Administration (FmHA) congregate program, no size limit is required and the program allows for building of common/service space and meal program. An application can combine congregate and assisted living if approximately one-third of the residents receive services. A congregate program application requires federal level approval and local endorsement is important. Ms. McCollough concluded that a combined demand of congregate and market rate would probably be buildable in Monticello at a reasonable rent. The assistance would be through a program available to residents of the building such as supportive living, this modeled after a program in Rochester, MN. Recommendation was that Pat provide the HRA with a list of potential developers and a summary of the study. Koropchak to contact developers for interest and a copy of the study summary, and to provide Brad Larson with a copy of the study. A partnership could be formed between the hospital district/developer/HRA providing services, management, development, and land acquisition. 5. QONS;pB4719N g0 SELy THE DIRT -BERN FROM HRA LOT 5. BLOCK 3, OAKWOOD INDUSTRIAL PARK. After a brief discussion, the HRA directed the Executive Director to notify Mr. Frank Klein of Double "D" Construction & Excavating. The HRA elected not to cell the dirt but to reserve the dirt -berm for a future developer and development of the lot. Page 2 HRA MINUTES JUNE 3, 1993 Ben Smith bought to the HRA's attention a request from Mr. Jay Morrell. Was the HRA interested in contacting Ron and Dee Johnson, owners of Lot 6, Block 3, Oakwood Industrial Park, to swap Lot 6 for HRA Lot 5? Mr. Morrell would be interested in purchasing Lot 5 from the ERA. The HRA recommended Koropchak research the lot sizes, estimated property value, property taxes and assessment due, etc. for further discussion later. 6. ggpSIDERATION TO [tEVIEW CUSj'OM CANOPY'S LANDSCAPE PLAN TO DETERMINE ANNUAL TIP ASSISTANCE. Tabled. 7. C9NSIDEjt_ATIOB OF AN UPpATE AND CONTINUED DISCUSSION ON THE RELOCATION OF BULK TANKS. Tabled. 8. OTHER BUSINESS, Potential developments which may request TIF assistance are the H -Window expansion and Standard Iran and Wire Works, Inc. projects. No new developments from Wilson Tool or Steinwall, Inc. 9. ADJOURNMENT The HRA meeting adjourned at 6:00 p.m. (�)9� `< V\.�—Q�iy 011ie Koropchak, HRA ecutive Director Page 3 3. Consideration to adopt a resolution authorizing the erenaration of TIF Plan for and the creation of TIF District No. 1-13 (Standard Iron and Wire Works, Inc.). Reference and Backaround. The HRA is being asked to adopt a resolution authorizing Business Development Services to begin preparation of the TIF Plan and creation of TIF District No. 1-13. This Economic District is being created to assist Standard Iron and Wire Works, Inc. with land write-down of $120,000 for Lots 7 and 8, Block 2, Oakwood Industrial Park and site improvements of $80,000. Total pay-as-you-go assistance over the district's life duration is $200,000. Development plans include the construction of a 52,000 sq ft facility which will become the new home of the corporate headquarters as well as a manufacturing facility. Thirty-two thousand square feet of manufacturing/warehouse space and 20,000 square feet of office space are proposed for Phase I. Projected jobs is 50-75 within the first year, average wages range from $8.00 to $13.00 ph. Total of 150 jobs within three to five years. Standard Iron is committed to quality assurance and has over 55 years of experience in custom metal fabrication. High- technology equipment is key to the services the company offers: CNC turret punch with plasma, welding (both manual and robotic), spot welding, shearing, sawing, forming, and rolling. The company has a purchase agreement with the Oakwood Partnership and hopes to begin building construction October 1. City Council approved the requested two conditlnnnl uses on August 9, 1993. Five-year audited financial statements show a very positive company history. Norwest Bank - Camden is very eager to work with Standard Iron. The company initially visited Monticello industrial sites the end of May. Ron Hoglund, John McVay, Kevin Doty, and Jeff O'Neill visited the existing New Hope facility on June 23 and indicate Standard Iron to a quality company which meets the City of Monticello's objectives. TIF Schedule - HRA authorization. August 11 TIF District No. 1-13 Plan distributed to school, county, and hospital. August 23 NRA approves TIP Plan September 1 City Council calls for Public Hearing September 13 City Council holds public hearing and approves TIF Plan September 27 Enclosed IS a copy of the proposed project financial package which includes TIF. This will be reviewed at the HRA meeting by Lenny Kirscht as modification are forthcomming. B. Alternative Actions. Approve the resolution authorizing preparation of TIF Plan and District creation. 2. Deny approval of the resolution. C. Recommendation. If the HRA determines the Standard Iron project meets the TIF criteria and Statutory requirements, recommendation is to approve the resolution. D. Supporting Data. Copy of resolution for adoption, useu and sources of funds, t project summary, and development eite map. STANDARD IRON AND WIRE WORKS, INC. 4990 North County Road 18 Minneapolis, MN 55428 (612) 533-1110 COMPANY: a Minnesota corporation, incorporated in 1946. PRESIDENT, TREASURAR, AND DIRETOR: L. T. "Rusty" Demueles CONTACT PERSONS: Rusty Demueles or Jim Moe PROPOSED BUILDING: 20,000 sq ft office (Company Headquarters) 32,000 eq ft manufacturing (Phase I) Fabcon or metal exterior LAND: 10 acres. Lots 7 and 8, Block 2, Oakwood Industrial Park. BUSINESS: Fabricators of Metal JOB CREATION: 50-75 within first year, total of 150 within three to five years. WAGES: Average $8.00 to $13.00 (Machinist, Welders) CURRENTLY: The company plans to sell the existing New Hope facility and retain the branch facilities in Alexandria and Sauk Center. TIME FRAME: Begin construction October 1, 1993 with completion December 31, 1993. COMMERCIAL LENDER: Negotiations currently under way with Norwest Bank - Camden. Uses and sources of funds enclosed. TIB Pay-as-you-go of $25,000 annually, not used as equity but for cashflow in projections. ESTIMATED ANNUAL PROPERTY TAXES: $68,000 LESS ANNUAL HACA: $28,000 ESTIMATED ANNUAL TAR INCREMENT: $40,000 ESTIMATED ANNUAL ASSISTANCE: $28,000 lA\ al . 7 o a p 1-0 t , I .„ 'a t 1I, . `this 3a ,0o co -4l %foo,oaao o 0 o r 5 101 31 `a . s o FJ (r tr� t. • — i � Is1.07` la ... ..._.� lea zw 9440 'waft 3 fa �' FU 2 IOMtn UTDOW cirr W tOILITR 911011 TRIEnuritM! 114 tax "WrttT iD ' AT -_ C6. fUViU IcumfrD 8 G9 �l I COIiaR f Kms PLANT I* S m ry\ �r , Am ^+� 21.21 aiOtm RAID\ Stan of t•I IT IRt. CI.aY Iaatl w 1 t uMrlvn Mr." p c th -+yr Yui , A, fiT. ■ j '� J Cuts\V'. ...- _ PER 0 4nlmw IATR ■rYn ,I mc=FweYr +. $EGO 4„Ik = •. - f �\ �If t.I Kr- S.i K(rr 1 ADD i, t. Nr1 II t i.Mw.:... uUMOtA 11ommomir R D U k D A l _ Ro Icin n Dr ■Olrlm\A \■ \ r � M- tqi+• +yN�"P Ntin1 OKYOW � �1ntT14LiD 11U JR�Mv TtY4�n �WTIA' Howl III& In. Im1 "IIA OI YtLL IY II run .IYTIIRIp4.43 t r 0Q Ll fAdI I 1 • �.w•/wW� .ar�ai a I — "' mor• rtL------- I I I YA11 Hill �A' �Y I /Rv! /NATTY! �LtY1 #w 0o' x0.60 `p,r p ` PUNOA! ROAD jT -tel 7 row-- �� • 40� Office: August 11. 1993 1 st Floor -10,000 square feet (Offices - 5,000 square feet, Storage - 5DO0 square fat) Exwtan Offices Accounting ConsmCdoe Esrimaring Construction Drafting Constnxtion Sales Construction Customer Service god Floor -10,000 square feet Plant -Office Purchasing Personnel Indusaial Products Estimating Industrial Products Saks Industrial Products Customer Service Lunch Room M/F lxker/WasWroilet Rooms Fust Aid Manufacturing: 32,000squmro feet 28'-0" side wall Bay 1 - SOX 200 designed for a Nure 5 ton bridge crane Bay 2 - 50 X 200 designed for a future 10 ton Midge crane Bay 3 - 60 X 200 with a 5 ton Midge crane Cost Estimates: Building $1,556,000.00 Sight Improvements 19400.00 Land 120.000.00 Total Real Estate Cost: $1,870,000.00 Equipment Projections: Press Brakes (2) $154.122.00 Horizontal Machining Center 450,000.00 HyDefinition Plasma 38" 298,000.00 ly" X Shea 93.400.00 ISO Ton punch Pass 129,000.00 Air ConVirssors (2) 21,000.00 programming Sys = 28,000.00 (Includes sheet metal and machining) 5 Tom Crane System $Q.Qpp.IIII Total Estimated Equipment Cuts, $1,255,522.00 Note: Eakated Cost includes machine cost, tooling, specialjoundadons where required, 1dgh: and rigging and mki^g August 11, 1993 Employment Projections: Office - 35 (approximately 18 will move from preset location) 17 gain Manufacturing Employees: 1st year - 30 2nd year - 25 3rd year - 1.2 Taal Manufacturing Employees: 80 Manttfacmring and Office Employees -115 New jobs created in the first 3 years - 97 August 11, 1993 F—Tmvatin$ & Grading 50.000.00 sight utilities - Sewer & water 6,500.00 Asphalt Paving 59,000.00 (_lab 8t: Sidewalk 10,000.00 Sprinkler System & General landscaping 32,300.00 Feaa 9,500.00 Sham Sewers 15,000.00 Fatting Lot Light Pales 9,000.00 Sight Drainage & UndscWing Plan 4.500.00 Tool: $194,000.00 STANDARD IRON USES OF FUNDS laud $ 120,000 Site Improvements 194,000 Construction 1,556,000 TOTAL 504 USES OF FUNDS $2,675,000 urm-v Horimetal Machining Center 5450. TOTAL USES OF FUNDS Llj= : r. plrr, Bank (ARM, 20 Years, Ist) S 956,000 SBA 504 (796, 20 Yean, 2nd) 700.000 Equity - TIF 314.000 TOTAL 504 BUILDING SOURCES OF FUNDS $1,870.000 SILk-Ao* - o11vW*uu► m Bank (9%, 10 Years, 1st M & E) 5420,000 SBA 504 (6.596, 10 Years, 2nd M & E) 300,000 Equity 85"ODO TOTAL 504 EQUIPMENT SOURCES OF FUNDS TOTAL 504 SOURCES OF FUNDS $2,675,000 Wkz* S!Uiritl Or rwAL)S Stft of Minnewta (6% 10 Years. 1st Purchase Money) $250,000 CMIF (6% 10 Years, 1st Purchase Money) 100,000 City of Monticdb (6% 10 Years, 1st Purchase Money) 75,000 Equity 25.000 TOTAL OTHER SOURCES OF FUNDS $450,000 TOTAL SOURCES OF FUNDS DEBT SERVICE Bank - Building (Avg. 9%) $7,705 $7.705 SBA - Building 5,427 5.427 Bank - Equipment 5,095 0 SBA - Equipment 3,406 0 State 2,775 0 CMB7 1,110 0 City m TOTAL MONTHLY $26,353 $13.132 TOTAL ANNUAL $316,236 $157.584 TAX INCREMENT FZNA NO ESTIMATE OF LOLL OOI/EM*ENT AIDS PENALTV CITY: MaNTICELLO SALES RATIO: 1.001 SDM DIST: 0882 0.00 EST TAX RATE: 24.60% TYPE OF DIST: ECON DEV/ST IRON 100.001 TAX CAP RATE: 1.071 CAPTIi7ED WALIFVMG SCIA?0L ADJUSTED rAX TAXES TIF TAX PHASE-IN TAX SALES QUALIFVINO PENAL TV INT'RFFFNT PAVA8LE CAPACIIV PERCENTAGE CAPACITV RATIO TAX CAPAC17V TAX RATE PENAI.IV ==ccccccccccccccccc:rccccccccccccccccccccc=cc:ccccacccc=cccec:c=cc==cccc=cccccc::ccc=ccccc::==_=====ccccc:::c=c:::c:c==: 1990 100.001 0.00 1.001 0.00 24.60% 0.00 1991 100.00% 0.00 1.001 0.00 24.60% 1991 100.001 0.00 1.001 0.00 24.601 1993 0.00 100.001 0.00 1.001 0.00 24.601 1994 0.00 100.001 0.00 1.001 0.00 24.60% 1995 63,100.00 100.001 63,100.00 1.001 63,036.96 24.60% 1996 62,784.50 100.001 62,784.50 1.001 62,721.78 24.601 1997 62,470.58 100.00% 62,470.58 1.001 62,408.11 24.601 1998 62,158.22 100.001 62,158.22 1.001 62,096.13 24.601 1999 61,847.43 100.001 61,847.43 1.001 61,785.65 24.601 2000 61,538.20 100.00% 61,538.20 1.001 61,476.72 24.601 2001 61,230.51 100.00% 61,230.51 1.001 61,169.34 24.601 2002 60,924.35 100.00% 60,924.35 1.001 60,863.49 24.601 2003 0.00 100.00% 0.00 1.001 0.00 24.60% 2004 0.00 100.001 0.00 1.001 0.00 24.60% 2005 0.00 100.00% 0.00 1.001 0.00 24.60% 2006 0.00 100.001 0.00 1.001 0.00 24.609 2007 0.00 100.001 0.00 1.001 0.00 24.60% 2008 0.00 100.00% 0.00 1.001 0.00 24.60% 2009 0.00 100.001 0.00 1.001 0.00 24.60% 7010 0.00 100.001 0.00 1.001 0.00 24.60% 2011 0.00 100.00% 0.00 1.001 0.00 24.60% 2017 0.00 100.00% 0.00 0.001 0.00 24.60% 0.00 0.00 0.00 0.00 15, 507.09 15,429. 56 15,352.41 15,275.65 15, 199.27 15,113.27 15,041.66 14,971.42 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 ccc ............. aaaaaacaaaoaaaacaaaacaaaaaaaaaaaaaasanaaaaaaaana..ariaaaaaanaacaaaaaaaaasaaa==-.aa:aa=...Z=.c=c: "AET" INCWW.M AFTER LOSS OF LOCAL OtNEDOEHr AIDS arrar:c=::ar:aarrraaaaarssr: aaracsrrraaraccsaaac:: aaaa aaaaaaaaraarcaaraaa=a::arrrcrcrrxcrrr:rrrsc=aaerrrxxr TAX ESTIM4TED TAX INCREAENT CAPACITY TOTAL INCREMENT "NET" AOAIINISTRATIVF. FOR DEBT EXCESS RATE INCREAFIJT PENALTY INow- ENT IMM SERVILE/B7HDS IAAIWW-W - r: rrsrr: r:.a rarxr:r:raaaaaa 1.072 a:acaaaraa:aacaraasaac 0.00 0.00 aaecaaaa:saaarassarcaasaaacsasaea 0.00 0.00 ercarr::crcrs:: 0.00 rarrrx rr 0.00 1.012 0.00 0.00 0.00 0.00 0.00 0.00 1.072 0.00 0.00 0.00 0.00 0.00 0.00 1.071 0.00 0.00 0.00 0.00 0.00 0.00 1.072 0.00 0.00 0.00 0.00 0.00 0.00 1.072 67,643.10 15,507.09 52,136.11 6,764.31 45,371.79 15,507.09 1.072 67,304.98 15,429.56 51,875.43 6,730.50 45,144.93 15,429.56 1.012 66,968.46 15,352.41 51,616.05 6,696.85 44,919.20 15,352.41 1.072 66,633.62 15,275.65 51,357.97 6,663.36 44,694.61 15,275.65 1.012 66,300.45 15,199.27 51,101.18 6,630.04 44,411.13 15,199.21 1.072 65,968.95 15,123.27 50,845.67 6,596.89 44,248.78 15,123.21 1.012 65,639.10 15,047.66 50,591.45 6,563.91 44,027.53 15,047.66 1.072 65,310.91 14,972.42 50,338.49 6,531 .09 43,807.40 14,972.42 1.072 0.00 0.00 0.00 0.00 0.00 0.00 1.072 0.00 0.00 0.00 0.00 0.00 0.00 1.072 0.00 0.00 0.00 0.00 0.00 0.00 1.072 0.00 0.00 0.00 0.00 0.00 0.00 1.072 0.00 0.00 0.00 0.00 0.00 0.00 1.072 0.00 0.00 0.00 0.00 0.00 0.00 1.072 0.00 0.00 0.00 0.00 0.00 0.00 1.072 0.00 0.00 0.00 0.00 0.00 0.00 1 .072 0.00 0.00 0.00 0.00 0.00 0.00 1.072 0.00 0.00 0.00 0.00 0.00 0.00 arra rr caerc cscaaasaarraaacxoracaaraaaacacaaaaac $121,907.33 anaaaaaaaaaaaaaaaaraaac $409,862.34 mrcaaaraca..... $53,176.97 csaraa aaraaaaaars $356,685.37 $121,907.33 f41G-09—'93 1,04 07:48 ID:BCS lib_, iEL 110:766-9034 0461 P02 STANDARDIRON USES OF FUNDS Land $ 120,000 SlIBIL".,. to 60,000 Consauction 1,930,000 Bquipmmlt W5,000 TOTAL 304 USES OF FUNDS $2,953,000 Hott=W Machining Center S450.0W TOTAL USES OF FUNDS Banc[ (ARM, 20 Yean, ln) $1,230,000 SBA 5% (7%, 20 Yeah, 2nd) 700,000 Equity TIF 200,000 Company 20.000 TOTAL 304 BUILDING SOURCES OF FUNDS $2,130,000 Bank (8%, 10 Yvan, lot M & Fi) $420,000 SBA 304 (6.5%, 10 Yvan, 2nd M R Ts) 300,000 Equity TOTAL 304 EQUIPMENT SOURCES OF FUNDS TOTAL 504 SOURCES OF FUNDS 12,933,000 AUG -01j-'93 PO4 07:48 ID:BDS Iii_. TEL 110'.786-9034 i3451 P03 State of Mlaeeaora (6% 10 Yvan, lat Purchase Money) $250,000 CMIP (6% 10 Yew, lit Purchase Money) 100,000 City of Moadeallo (6% 10 Years, let Purchase Muney) 75,000 Equity 25.000 TOTAL OTHER USES OF fUNUS 5450,000 TOTAL USES OF FUNDS Bank- Building (Avg. 9%) DEBT SERVICE Years 1.10 $11,067 Years 11.20 $1 1,067 SBA - Building 5,427 5,427 Bwk - Equipment 5,095 0 SBA - Bq*ra al 3,406 0 State 2,775 0 CIm 1,110 U city —M5 TOTAL MONTHLY $29,715 $16,494 TOTAL ANNUAL $356,580 $197,928 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. (1) 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. Al The project shall increase moderate priced housing options for area residents. . ?V The project shall facilitate the redevelopment or elimination of "substandard" or "blighted• areas as determined by the HRA. (6) 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. (B) The project shall be deemed to promote additional desired •spin-off" development. POLICY 01DELISRS (1) Tax Increment Financing will be considered for use in economic development, redevelopment and specialized housing projects. The standard level of assistance for projects shall be as follows: 5) A RESOLUTION BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO, WRIGHT COUNTY RESOLUTION NO. RESOLUTION AUTHORIZING PREPARATION OF A TAX INCREMENT FINANCE PLAN FOR TAX INCREMENT FINANCE DISTRICT NO. 1-13 WHEREAS, the Housing and Redevelopment Authority ( the "NRA"), in and for the City of Monticello, Minnesota, has received an executed Preliminary Agreement dated August 11, 1993, from L. T. "Rusty" Demeules, President, of Standard Iron and Wire Works, Inc. (the "Developer"), and WHEREAS, the Developer has delivered a check dated August 11, 1993, in the amount of 85,000 to the NRA; and WHEREAS, the Developer has delivered a site plan (the "Site Plan") and the City of Monticello (the "City") approved on August 9, 1993 a conditional use to allow open and outdoor storage as an accessory use in an I-2 zone and to allow a reduction in the parking lot design requirements; and WHEREAS, the Developer and the Landowners have negotiated and agreed upon a selling price for Lots T and 8, Block 2, Oakwood Industrial Park; and WHEREAS, the Developer has begun negotiations with Norwest Bank - Camden for project financing and BDS, Inc. has prepared a Financial Proposal; and WHEREAS, the Monticello Prospect Team visited the Minneapolis Standard Iron Facility on June 23, 1993. NOW, THEREFORE, BE IT RESOLVED by the Monticello Housing and Redevelopment Authority, in and for the City of Monticello, Minnesota: That the NRA authorizes Business Development Services, Inc. (BDS) to establish Tax Increment Finance District No. 1-13, an Economic District, and to prepare the Tax Increment Finance Plan relating to District No. 1-13 for Standard Iron and Wire Works, Inc. Page 1 That the HRA requests the Monticello City Council on Monday, September 13, 1993, call for a public hearing date of Monday, September 27, 1993, to establish Tax Increment Finance District No. 1-13 and adopt the Tax Increment Finance Plan relating thereof. Adopted this 11 th day of August, 1993. ATTEST: HRA Executive Director HRA Chairperson Page 2 copy PRELIPlIHARY AGREEMENT THIS AGREEMENT, dated this lith day of _.Aucust , 1993, by and between the Housing and Redevelopment Authority in and for the City of Monticello, Minnesota ("HRA"), a Minnesota public body corporate and politic and ,Standard Iron & Wire Worics. Inc. , a Minnesota Corporation ( "Developer") WITNESSETH: WHEREAS, the HRA desires to promote development of an area in the City (legally described in Exhibit A attached hereto) located at ( "Property") ; and WHEREAS, the Developer has submitted a preliminary proposal for development of the Property ( "Development") , a copy of which proposal is attached hereto as Exhibit B; and WHEREAS, the Developer has requested the HRA to explore the use of tax increment financing (TIF) to offset a portion of the Development costs; and WHEREAS, the HRA and Developer are willing and desirous to undertake the Development if (i) a satisfactory agreement can be reached regarding the HRA'a commitment for public costs necessary for the Development; (il) satisfactory mortgage and equity financing for the Development can be secured by Developer; and ( iii) the economic feasibil ity and soundness of the Development and other necessary preconditions have been determined to the satisfaction of the parties; and WHEREAS, the HRA is willing to evaluate the Development and work toward all necessary agreements with Developer if Developer agrees to reimburse the HRA for its coats if the Development is aouu3 atna 1 abandoned or necessary agreements are not reached under the terms of this Agreement. NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and obligations set forth herein, the parties agree as follows: 1. Negotiations between the parties shall proceed in an attempt to formulate a definitive development contract ("Contract") based on the following: (a) Developer's current proposal which shows the scope of the proposed Development in its latest form as of the date of this Agreement, together with any changes or modifications required by the HRA; (b) a mutually satisfactory Contract to be negotiated and agreed upon in accordance with negotiations contemplated by this Agreement; (c) such documentation regarding economic feasibility of the Project as the HRA may wish to undertake during the term of this Agreement; and (d) other terms and conditions of this Agreement. T. It is the intention of the parties that this Agreement (a) documents the present understanding and commitments of the parties and (b) will lead to negotiation and execution of a mutually satisfactory Contract for the Development prior to the termination date of this Agreement. The Contract (together with any other agreements entered into between the parties hereto contemporaneously therewith) when executed, will supersede all obligations of the parties hereunder. 3. During the term of this Agreement, Developer agrees to: (a) Submit to the HRA a design proposal to be approved by the HRA showing the location, size, and nature of the proposed Development, including floor layouts, renderings, elevations, and other graphic or written explanations of the Development. The design proposal shall be accompanied by a proposed schedule for the starting and completion of all phases of Development. The Development shall be designed to accommodate public facilities to be constructed adjacent to, or as part, of the Development. (b) Submit an over-all cost estimate for the design and construction of the Development. aou�s� snn-> 2 (c) Submit a time schedule for all phases of the Development. (d) Undertake and obtain such other preliminary economic feasibility studies, income and expense projections and such other economic information as the Developer may desire to further confirm the economic feasibility and soundness of the Development. (e) Submit to the HRA the Developer's financing plan showing that the proposed Development is financially feasible. (f) Furnish satisfactory financial data to the HRA evidencing Developer's ability to undertake the Development. 4. During the term of this Agreement, the HRA agrees to: (a) Take all actions necessary to create a Project Area (if necessary) and Plan therefor, and a Tax Increment Financing District ("TIF District") and Tax Increment Financing Plan ("TIF Plan") therefor, in accordance with Minn. Stat. Sections 469.174 through 469.17.9. (b) Proceed to seek all necessary information with regard to the anticipated public costs associated with the Development. (c) Estimate the HRA's level and method of financial participation in the Development and develop a financial plan for the HRA's participation. S. It is expressly understood that execution and implementation of a Contract shall be subject to: (a) A determination by the HRA that its undertakings are feasible based on (i) the projected tax increment revenues and any other revenues designated by the HRA; (ii) the purposes and objectives of the Plan end TIF Plan; and (iii) the best interest of the HRA. (b) A determination by Developer that the Development is feasible and in the beat interests of Developer. (c) Execution of the Contract by the parties. 6. The Developer hereby grants and conveys to the HRA and its agents, its and their successors and assigns, an easement over and upon the Property for the purpose of ingress and egress and for conducting such testa or collecting such data as may be reasonably necessary to determine the feasibility of the Development. The easement shall terminate upon execution of a Contract or termination of this Agreement in accordance with the terms of this Agreement, whichever occurs first. aon453 enn-t 3 7. This Agreement is effective for a term ending 60 days from its date, unless extended by mutual agreement of the parties. If for any reason a Contract is not negotiated and executed within the term of this Agreement or any mutually approved extension thereof, the Developer shall reimburse the HRA for all costs reasonably expended by the HRA in regard to the Development. S. In order to secure payment of the costs incurred by the HRA in regard to the Development, the Developer shall deliver to the HRA cash or a letter of credit in the amount of 55,000.00 The letter of credit shall be in form satisfactory to the HRA. The cash or letter of credit shall be delivered by the Developer to the HRA within 1 days of the date of this Agreement. The letter of credit shall be valid for a minimum of — - months from the date of this Agreement. If while determining the feasibility of the Project the HRA determines that its expenses will exceed the amount of the deposit and that additional security is required, the HRA shall notify the Developer of the amount of such additional security. The HRA may terminate this Agreement in the event that such additional security is not delivered with such period. within ten calendar days of receipt of said notice, the Developer shall deliver to the HRA the required additional security. If necessary in order to ensure that the HRA possesses sufficient financial security at all times prior to completion of the Project, the Developer shall renew or extend the letter of credit. Upon receipt of written demand from the HRA for reimbursement of its costs, the Developer shall remit payment to the HRA within ten days. If the Developer fails to make the payment within the specified period of time, the HRA shall utilize the cash or letter of credit to reimburse itself. 9. This Agreement may be terminated upon 30 days' written notice by the HRA to Developer if: (a) an essential precondition to the execution of a contract cannot be met; or (b) an impasse has been reached in the negotiation of any material term or condition of this Agreement. If the HRA termintes the Agreement under this Section 9, Developer shall remain liable to the HRA under sections 7 and 9 herein for costs reasonably incurred by the HRA through the date of termination. 10. The HRA agrees that it will not solicit proposals for development of the Property from others during the time that this Agreement is in effect. I1. In the event that the Developer, its heirs, successors or assigns, fail to comply with any of the provisions of this Agreement, the HRA may proceed to enforce this Agreement by appropriate legal or equitable proceedings, or other similar proceedings, and the Developer, its heirs, successors or assigns, ZMMT ma -3 agree to pay all costs of such enforcement, including reasonable attorneys fees. 12. If any portion of this Agreement is held invalid by a court of competent jurisdiction, such decision shall not affect the validity of any remaining portion of the Agreement. 13. In the event any covenant contained in this Agreement should be breached by one party and subsequently waived by another party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other concurrent, previous or subsequent breach. 14. Notice or demand or other communication between or among the parties shall be sufficiently given if sent by mail, postage prepaid, return -receipt requested or delivered personally: (a) As to the HRA: (b) As to the Developer: Standard Iron S Wire Works, Inc. 4990 North Highvay 169 New Hope, M 55428 19. This Agreement may be executed simultaneously in any number counterparts, all of which shall constitute one and the same instrument. IN WITNESS WHEREOF, THE HRA has caused this Agreement to be duly executed in its name and behalf and its seal to be duly affixed hereto and the Developer has caused this Agreement to be duly executed as of the day and year first above written. DEVELOPER: Standard Iran b Wire Works HRA: OF Its eVIC amsev Its C Its Its ,saw an".2 STATE OF MINNESOTA ) as COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 1991, by and , the Chairperson and Executive Director of the Housing and Redevelopment Authority in and for the City of Monticello. Notary Public STATE OF MINNESOTA ) )99 COUNTY OF 4\MweP�,\n ) The foregoing instrument was acknowledged before me this ilti,. play of __AuWi- , 1993, by Harold gmmy and --------- the vi— a.,sa+we... and -------------------o Standard Iron , a 14innesota corporation, on behalf of the corporation. �. No ary Public 083RAllOIl66lVB31 THIS INSTRUMENT WAS DRAFTED BY: ftwpao-m 0 HENKMOOLIff HOLMES 8 GRAVEN, CHARTERED w�Yat101 470 Pillsbury Center Minneapolis, MN 55402 (612) 337-9300 C maa3 ana•3 Lots 7 and 8 Block 2, Oakwood Industrial Park -J 13602 J STANDARD IRON & ' WIRE WORKS, INC. 4M NORTH M10MYAY 166 PN. 614633.1110 MOMEAPOU9. LUMMEBOTA 664266063 /] — I I 3Y Q= 11 -6/3a PAY _ e' �a OF cffy 'Gid M4NT/CEct0 yvRA M�d-r Trym J1% ���• S DOLLARS NMwM 6814 YMMIXA NA. ' Alen Nfwn' ONkt 616 NMA Bwwme 60M1 uk."Im" UN 66R6 FOR 00136020 j:0a>,00005ij: z7-00.1060 1 e. 1511.a wltrn:(xfk.r.i.r MIx.EPMAVM1 � � Tr11Or n.pn1 C: Donor crtm Plr4mrw, a,nb1 �I--� PURCHASE AGREEMENT I Ol Minnesota �./ U"A+ ` ' . 19 RIVED OF {.t77u.. U11L.t. I, OAr .aLll tnesumd7�'�'{�wC ilk �+.a/fie +�ea.(S—.51*'• by --CAQA as earnest money to be deyosRed the next Ctdness day atter aoceplaroo in tntst account of Rating broker (uiess othe cpedfrewd in br g) and' Parta/afy�rrim1t for the rr Urt I .!=;rQesC(/I@od�s 1 located at (Street Address /xw Reed Cdy drmlo vt'1 r _so I / r I Cwmy o1 i9ht state d MWlesaa. tr at1 Protb, attached ligand hting all Stomt alone withl KID* bulbs, ane« Irt8eln, storm e, a rhe, awnings, window Shapes, blh . . away hnp plumbing fixtures, water heater, heating system, humidifier, central air condi electreric stir Rper, enAanaticdoor opener with controls, water Softener. cable television outlets mid cabling. BUILT-INS to induce: dishwasher. garbage deposalhe lxxmpactor, oven(e), cooldop stove. miaovveve oven, hoodden..Mercom, Installed carpeting. IF ANY. boated on thepromises which we the properly of Seller and also the following personal property: No in 4. 80 of avhldt oa-r,�,Dm�eemrtv•• Shlper has fhb day� b r forhe sum d: S �IuP 7hGtt..t�J-ed SQ Jo«"leafy which Beyer agrees to pay In the Idlowi g manner. Eamest money of S-5 000.** end $ 11Z woo. cash on or before -urn u car 19 9 3 , the date of dosing, and the balance 0111 X k byfhanch Itsfonows: .9 , r.. _ I... :—.1-1 . —.—i_.. ..f «+r. .c•1 . tih i....- ..:tll rn.1l.,. 1h1, u l,l. i .7.....I/I.. t"rir,r i.h.. . .t, u' —1-1,. 1..� 4'o AfPALAA. Afbctsadsn addendms wlidnl we .rade a pert at tlYa Sweet,- •i SUBJECT TOgdor w%w by Buyer, seller agrees to execute and deliver e ' IL WanaMy I7aed. to)be Weed in by Spouse. B eM, cor""' ,q —getable tille ro the plot. es subject only toRestrictom , tthsteMp exc8p0arns: l (etl�u"falor/elture pard rovision. (3 Reservationtof e�rty minerals a minerdFederal regulallorts, (r�gs State or ,Mimesde. (J or tof end tlratna� easements which do not I Odom with present Improvements. (S) Rights of tenants. ilarty. REAL ESTATE TAXES Sella agrees ro pay I 't/ 121hs and Stryor agrees to pay V /•12Qu of taxes dittoend able In the year 19 Q� . Sella agrees to pay (f 12ths end Buyer agrees to pay c.a / 12'ths d WmWmm11 of rpe isaesmnants duo and payable In the year 19 43. • open to on the date of dosing & special aeaessrrtants Ibwed and pending. Buyer shun pay taxes due and payable In the year 19 2 and arty unpaid Installments of Special assessments) payable therewith and thereafter. Seller warrants that taxes due and payable In One year 19 wM homestead cassUlcatlon. Neither Selby nor Sollar's Agent makes any representation calceminthe amount of future real estate taxes. WARRANTIES Seger warrants that btdldings, H any, are entirely wthkh the boundary of Innes of the premises. Seller warrants that all nppgarcas. healingand!calir catdA w1 and nd pit&" used ekxrntM retod on the farases aro proper waking order on date of dosing. tno Buyer has wo to red pranlsas prior to clasing. Buyer shell satisfy NnreeHRrersetl el Mather expanse that an appliances, hosthyl end air twndlllona, and Mhwhbbq are h r Mg order bobre ng. Geller vvanents Owl the promises are connected to: sewer ❑yes • n ra; ty valor nyee • nna. 1f tfD Wanless ere deshoyed cur subalenllagy darns by ibe or any other cause the ��sh� date, Ain oproenn�t shmA laocmho mIt and veld al S option, end the eemelslrygph�ay be relundod to Buyer. POSSEBS110N Selby apnoea to deliver possossbn non titer than o �rd Hlplid pdrolourn gas shelf be ralod between the AA Merest. div warm and sewcychurges. y ort natumt Des dwrges. fool e pollen u d N/!t SoAm agrees b remove all doNls and o➢ perearel property not Included herein from the pprremFses before possoesfon delle. TnLE A F.XAIBelAT10h1 Sellar Nnaft, wmtM o raaonado time Sher ecceptarnco of Inde ee�m, hrrdah an Abatred d Tttio, o e atoned ProsoM AUstrsel, catlllod ro dnto to knchldo prspm soarclws covetng bmrdrycnrptdss, State and Federal judgments and liens. Buyer Hived 11 ony MjoctA trtssm �SSailorr sha bo allowed i 20 atyymee M make Nile 0mnrkotn otlp s, which engin be mode In � or doomed roquked Shall be postponed, but upon Cmrnctbn d We mw wlls hereunder hln 10 days alter written nm� ro BBuuyeerr,, the parrtties shoA perform this agreemerd eowrdhg to Its terms. If title is not eorrocrod within 120 days, from the date of written objoetbn. Ole agioemom shag be nut and void, al tan of Buyer. moltho party shat be bads ea damrtgoe hero to the other. and named money sh nA be raltnwed to Buyer. t)EFAULT If No Is marketable or is carodod wilhln so Ono, end Buyer defaults in any, of the agreements heroin. Saler may terminate this ageonatd and on such tax.. halon as paynhads Hunte hDrawnda dro1 be rdahed b- ;Ow and llpoq as Qtr rospocWe hlmoab may 4poor, na dvnngos, limo bft of the essonoe NXd. fro sin nol deprive e+Q,a = dtho rkU d erdoselt e,e �orlle pobnrmhco of INS �e(preomont, provided Ode egrearant Is net te eat Sclbn ro enlace spec peAomtancsls carmhoncsd "Volk, months after such npnt of ectlon antes. M the evaa Buys derfaula N his partormanco of the toren of Ode Agreement, and Notico of Cancellation is served upon esu Buyer pursuant to MSA 65991. the bnnhxim period Shall be " (70) days as pa Mt by Subwalon S of MSA 559.21. ACCEPTAMM Buyer wdentards and agrees had this Sale Is POW to aoceptence by Seger in writing. Agent is not lable or meporalble on a cmffl d Ob aW menu. except b mWm a socounl Por the oa,,=l money. AGENCY OMOSURE Wt -'.0— WpUlfte he or We to npaaaging Use In IMS transuetion. The Itaitbg egerhl or broker dipu4be tie or erre to top swith hp the seller In Ude transection. 1, he owner, of the promisee, accept this agr menu and I agree to purchase the premises for ° _17t -prld on the to... mid 1Jvsale herebymsdeff//0B A_ ktdflea J+�rt►tt�via ��Yt� ooniditionsset �•--f—:�A,�oe en .LER tip tAr BUYEW� SELLERT , I�Iwlfhs BUYER V DdMery of d papers and males Od be meds at the o1nos at: Company Address C />'-\ VIP THIS 19 A LEGALLY BOMO CONTRACT IF NOT UNDERSTOOD BEE CONIPflTENT ADVIC$, t ADDENDUM TO PURCHASE AGREEMENT DATED JUNE 23, 1993 Purchaser shall confirm (at Purchasers sole cost and expense) the nonexistence of any hazardous material on the property. To the best of Seller's knowledge, no toxic or hazardous substances have been generated, treated, stored, released or disposed of, or otherwise deprWted in or located on the property, including without limitation the surface and subsurface waters of the property, nor has any activity been undertaker on the property which would cause the to I Fx 1 m a haaardous waste treaamerht, storage or disposal facility. or which w d cause a release or threatened release of hazardous waste from the property, or which would cause the discharge of pollutants or effluents into any water source or system, or the discharge into the air of any hazardous emissions. To the best of Seller's knowledge, there are no underground storage tanks located on the property. Purchaser agrees to cm&m such investigations as are nevem to deterrmne whether there are any hazardous materials on the property within forty five (45) days after the Purchaser's election to purchase the property. if such inspxHons should disclose the existence of any hazardous material or underground storage tank, then Purchaser may cancel and withdraw its option to purchase the property at any time, and thereupon the option price sh>tll be refunded to Purchaser and this Agreement shall thereupon terminate and neither party shall be liable to the other in nspec of this contract. W6.� 6. Consideration to adopt a resolution authors zina to split and decertifv lot varcels 11 and 12 of TIF District No. 1-7 INAWC01 and the Drecaration of TXF Plan for and the creation of TIF District No. 1-16 ( The H -Window Company) . A. Reference and Backaround. The NRA is being asked to adopt a resolution authorizing Businese Development Services to begin preparation of a new TIF Plan and the creation of a new (additional) TIF District No. 1-16. This Economic District is being created to assist the H -Window Company expansion through a construction debt service write-down. The total pay-as-you-go assistance over the district's life duration Is $200,000. In 1987 , TIF District No. 1-7 was created for NAWCO and provided assistance of $110,000 for land wri to -down of Lots 11 and 12, Block 2, Oakwood Industrial Park. The company completely financed the original 28,000 eq ft facility, balance of land cost, machinery & equipment, and necessary working capital. Current employment is 30. The proposed expansion involves the construction of an additicnal 25,000 sq ft manufacturing space, approximately •,000 eq ft office, new equipment, and creation of an additional 60 new jobs. First, the HRA must authorize to split and decertify lot parcels 11 and 12 of TIF District No. 1-7. This will establish a new District No. 1-7 boundary line along the eastern ly exterior wall of the existing facility with continued -generation of the current tax increment. Secondly, through the HRA authorization to establish TIF District No. 1-16 and its district boundary line which will encompass only the new proposed facility, it 1s being proposed that the HRA use this captured tax increment to write-down the construction debt service. The TIF schedule will follow that of Standard Iron's. Enclosed is a copy of the proposed project financial package which includes TIF. This will be reviewed at the HRA meeting by Lenny Kiracht as modifications maybe forthcoming. B. Alternative Actions. 1. Approve the resolution authorizing the split and decertification of lot parcels 11 and 12 of TIF District No . 1-7 and preparation of the plan for TIF District No. 1-16. 2. Deny approval of the resolution. C. Recommendation. If the HRA determines that the H -Window expansion meet the TIF criteria and Statutory requirements, recommendation is to approve the resolution. SuuAortina Data. Copy of the uses and sources of fund and site map. wrA—i au�tMCING The City of Monticello has utilized a wide variety of different sauces to provide Wceative financing to encourage economic development. The City retains professional stiff which can assist the H -Window Company in accessing state and feral programs which would be applicable for their project The City, in foto, is willing to provide assistance through these programs as would ¢e requested and desired by the H -window Company. The City has review the various financing programs that are available. There are many different alteaaaaves which could be utilized to provide an aurachve financing progiam for 14 -Window Company. We have, however, developed an option which we think wail][ best umli>7e the programs and those which will provide the most attractive rates and terms for your company. Based as our assumptions and understanding of this project, we have identified the following uses of foods: �- H-WUQOW COMPANY Monticello, mist watt Equipment $650,000 873,000 Site i. ,' 50.000 workutg apital 400.000 Capitalized Interest 60.000 Financing Casts 44.E TOTAL USES OF FUNDS: .2. Based on these uses of funds, our analysis suggests the following sources of funds: SOURCES OF FUNDS Equity - working Capital S 400.000 Bank (8.0 20 Yearn, 1st REM) _ 1,175,000 State of Minnesota (5%, 20 Years, god REM) 300.000 (Forgiveness will be requested ® S5,000/job created) TOTAL SOURCES OF FUNDS: #2,075OM Through the use of Tax Increment Financing, we would propose the use of revenues to 'writo-down' the H -Window' Company's debt service, cost per square foot, and net effective interim rate as follows: Market Value Estimated at $27 S.F. x 23,600 S.F. = $691,200 1993 Tax Capacity Rate - 1.07327 Taxable Basis - 4.7% x Market Value 5691.200 x _047 S 32,486 x 1.07327 $34,866 Annual Tax Inaement 51 FP7A �I"4:WST:4l Bank $9,770 State of Minnesota (Assumes creation of 60 new jobs) 1.320 MONTHLY DEBT SERVICE: $11,090 :.IZ1 61K.1 W 0 =I:f '1l: / (Ilqm UEM Las: TIF Revenue NET DEBT SERVICE: (20,000) 5113,080 Average Cost/ST=e Foot (Including Equipment) $4.41/S.F. Net Effective Interest Rate 5.45% Excess Tax Increment Revenue will be used by the City of Monticello to provide 100% write down of Lots 1, 2, and 3 of Block l of the Oakwood Industrial Park, Second Addition. s,v -. ruvU.4 u4aTMOGRANS The following is an overview of programs that are available for use by the H -Window Company. Several of these programs have been utilized in t1he development of the City of Monticello's proposal for your company. Additional programs cmdd be utilized at the company's discretion. The Minnesota Economic Recovery Grant Program is designed to address critical economic development needs throughout the State of Minnesota. The program is administered by the Minnesota Department of Trade and Economic Development. Grants are awarded to communities to help them meet local economic development needs by providing loans to businesses that are planning expansions. -4- fi1•,Yw_-- �clt. o_. -40, . 4 C o Q2 30,00 W l.t 4l 00.000 S �o�a 9� ''� 1�.SC, v C.S ro cam! 4, d o +� •• ''tT 7 L• o , p O o a t 1'O C. c- s;_ TRI 4 r� 3PAF PLAZA �1 # O,y ' - IlvfTl MINI ISIOOI Ya J CITT or y. M1.911 time ITOMAfA 1111 41MC T" TIM! IOwr ICLU6 CO. Q iJ'lrlcR tOM[l/ WGIN[u1NC G --.1` G cU10 • . N:r_ SLANT 20 M S • T "W"MTN ' rn CD UA LjM J Sf.aJ j lil LLS STATE 60 1.1 T.�f[I, 1111. QLM VAM I 1 MIIMIMou Amit i f IrY�llq •N VVV i 1 Pip j/gy � r k Y•. B� rr —�_ J'• - 1'r`2,L• 1.12 wTw! CUti1ew- V ��JJJ . YI 4�• TF CV•e,•i+� 1 SNI TJII 1 11.9014161/ Y-YIMOW L'M1raMT ew t ii 1 1.11 • • � 1 '1 .. � .. r Qb'. Vr C.uCIM.r.. 1•. w•1 D U M� \ Cl" or KMTICtLw Les N a r 1NU I.S.1901411. M/MTJ LA YY Jdw� rlwljaln 1190T/s. ISM tlM. MWITe1u ar Ytu j ... Mr, 'a r pv IAtt .roTMuwi�' •\� l,at ••rn T I - - q �` 1.11 L.L u,�h t.a wrii 3 Y` •� 1 Vil�iiiii.. HOUSING AND REDEVELOPMENT AUTHORITY City of Monticello TAX INCREMENT FINANCING POLICY Program Purposes The Monticello Housinq and Redevelopment Authority will utilise Tax Increment Pinancing to support the community's long-term economic and housing goals. Policy Considerations: The HMA 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. (1) The project shall be consistent with the City's Comprehensive >Zur . 21 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. . 41) The project shall increase moderate priced housing optionh for area residents. . . The project shall facilitate the redevelopment or elimination of 'substandard' or •blighted• areas as determined by the HRA. (6 1 the project shall facilitate the "clean-up* of environmentally unsound property. (7) The pro act shall provide additional public funding for pubic 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 GUIDELINEH (1) Tax Increment Financing will be considered for use in economic development, redevelopment and specialized housing projects. The standard level of assistance for projects shall be as follows: Industrial Development Committee Minutes - 6/17/93 D. Standard Iron and Wire Works Inp, John McVay detailed the potential of relocation of Standard Iron and Wire Works, Inc., to Monticello. He noted that the facility would include approximately 50,000 sq ft of metal fabricating and manufacturing. Standard Iron and Wire Works would be combining three facilities now located in Minnesota It would create approximately 80 jobs to start with potential of 185 jobs. O'Neill noted that 011ie has scheduled a visit to the Standard Iron facility in New Hope for June 23. Anyone interested in visiting this facility is welcome. E. Medical Transcription. No report. F. Custom Molder of Industrial Medical Products. No report G. Right Choice Services. No report. �-:IZL47M A. The H -Window Comuanv. Ken Maus note,:::.e importance of continuing to take an aggressive posture toward making Monticello an attractive place for the H -Window Company. He noted that a letter from the HRA to the IDC supporting a good hard look at utilization of TIF to assist the H -Window Company in the expansion plans is appropriate. Shelly Johnson noted the importance of showing continued interest in retaining the H -Window Company in the community. We need to be aggressive in meeting their needs. Don Smith indicated that the H. Window Company has had recent successes and anticipates a bright future. Arve Grimamo mentioned that the facility may double in size. Other states have unbelievable bait that they are using to try to attract the H - Window Company. Monticello should not take it for granted that 11 - Window will expand in Monticello. B. Aroplaxt Coroorntion. 011ie's notes indicated that Aroplax will be conducting an open house sometime in August. C. BRE r000rts. Don Smith noted he'd been in touch with Joe Campbell of Sunny Fresh. Sunny Fresh is doing well and may be looking at expansion of their facility at sonm point in the near future. Assistant Administrator O'Neill noted that Sunny Fresh has come forward with plans for improving their parking and installing landscaping on the library side of the facility. He noted that Sunny Fresh is interested in utilizing or purchasing a portion of the 5th Street right-of-way for Page 2 5. Consideration to review for recommendation the oreliminary 1996 HRA Budoet. A. Reference and Backaround. At a previous HRA meeting, the HRA requested to review for recommendation the proposed preliminary HRA budget. Enclosed Is a copy of the proposed BRA Budget for 1994 as prepared by Rick Wolfateller. For purposes of comparison, the 1993 approved HRA budget is also listed. The City Council will adopt the Preliminary Budget for 1996 on either August 23 or September 13. Please review for discussion and recommendation. HRA FUND BUDGET REVENUE 1993 1994 CURRENT AD VALOREM TAXES 213.31011 10,587 17,145 TIF i2 - METCALF & LARSON 213.31052 41,900 43,000 TIF i3 - FSI 213.31053 52,800 0 TIF i4 - IXI 213.31054 22,000 0 TIF i5 - CONSTRUCTION 5 213.31055 70,700 72,000 TIF 46 - RAINDANCE 213.31056 62,650 66,300 TIF i7 - NAWCO 213.31057 36,900 38,750 TIF i8 - NSP 213.31058 6,650 6,200 TIF i9 - TAPPER 213.31059 25,600 25,400 TIF i10 - RENMELE 213.31060 27,850 27,750 TIF ill - 14ARTIES FARM SRV 213.31061 2,850 2,800 TIP i12 - AROPLAX 213.31062 0 21,200 TIF i13 - SHINGOBEE 213.31063 0 0 TIF i14 - SUBURBAN MACHINE 213.31064 0 12,500 TIF i15 - CUSTOM CANOPY 213.31065 0 0 HOMESTEAD CREDIT 213.33402 1,113 0 INTEREST EARNINGS 213.36210 12,000 11,000 TOTAL REVENUE HRA9394.LISt 8/10/93 Page 1 EXPENDITURES PERSONAL SERVICES 1993 1994 SALARIES, FULL TIME - REGULAR 213.46301.1010 7,125 9,100 PERA CONTRIBUTIONS 213.46301.1210 320 410 FICA CONTRIBUTIONS 213.46301.1220 450 565 MEDICARE CONTRIBUTIONS 213.46301.1250 100 135 HEALTH/DENTAL/LIFE INSURANCE 213.46301.1310 605 785 TOTAL PERSONAL SERVICES 8,600 10,995 OTHER SERVICES b CHARGES PROF SRV - LEGAL FEES 213.46301.3040 500 500 MISC PROFESSIONAL SERVICES 213.46301.3199 2,000 5,000 TRAVEL EXPENSE 213.46301.3310 50 50 CONFERENCE 6 SCHOOLS 213.46301.3320 275 300 LEGAL NOTICE PUBLICATION 213.46301.3510 150 175 PROPERTY TAXES 213.46301.3710 100 100 DUES, MEMBERSHIP 6 SUBSCRIPTION 213.46301.4330 25 25 TOTAL SERVICES 6 CHARGES 3,100 6,150 OTHER FINANCE USES TRANSFER TO DEBT SERVICE 213.46301.7205 220,400 223,525 TOTAL OTHER FINANCE USES 220,400 223,525 SUBTOTAL EXPENDITURES 232,100 240,670 HRA9394.LISi 8/10/93 Page 2 TAX INCREMENT DISTRICT EXPENDITURES TIF 12 - METCALF 6 LARSON 1993 1994 DEBT SRV PRINCIPAL - SHORT TERM 213.46502.6030 2,785 0 DEBT SRV INTEREST - SHORT TERM 213.46502.6130 1,500 0 TOTAL TIF i2 4,285 0 TIF t3 - FSI DEBT SRV PRINCIPAL - SHORT TERM 213.46501.6030 0 0 DEBT SRV INTEREST - SHORT TERM 213.46501.6130 0 0 TOTAL TIF 13 0 0 TIF R4 - IXI 4 DEBT SRV PRINCIPAL - SHORT TERM 213.46504.6030 16,083 17,050 DEBT SRV INTEREST - SHORT TERM 213.46504.6130 91915 8,620 TOTAL TIF f4 25,998 25,670 TIF 08 - NSP DEBT SRV PRINCIPAL - SHORT TERM 213.46508.6030 2,000 2,000 DEBT SRV INTEREST - SHORT TERM 213.46508.6130 1,440 1,280 TOTAL TIF 18 3,440 3,280 TIF 111 - MARTIE FARM SERVICE DEBT SRV PRINCIPAL - SHORT TERM 213.46511.6030 2,500 2,500 TOTAL TIF 111 2,500 2,500 SUBTOTAL TAX INCREMENT DISTRICT EXPENDITURES 36,223 31,450 GRAND TOTAL EXPENDITURES HRA9394.LIS: 8/10/93 Page 3 E N D I, the undersigned, an employee of Mid-America Business Systems hereby certify that the microfilm images ending with UR 4 . 5� 3 are complete and 'accurate reproductions of the original records of e-4 , i MI O)mL l?aQQr� as accumulated during the regular course of business, and that it is the established policy and practice of Mid-America Business Systems -to microfilm records for permanent file. It is further certified that the photographic process used for microfilming the above records were accomplished'in a manner and on microfilm which meets the recommended requirements of the National Bureau of Standards of permanent micro'- graphic icro- graphic reproduction. 1n�M-;ln1. ��i.Qo Q �� C,C) ame Dat�:1.L11