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
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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-
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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