HRA Agenda 07-06-1992AGENDA
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Monday, July 6, 1992 - 7:00 PM
City Hall
MEMBERS: Chairperson Al Larson, Ben Smith, Lowell Schrupp,
Everette Ellison, and Tom St. Hilaire.
STAFF: Rick Wolfsteller, Jeff O'Neill, and 011ie Koropchak.
GUEST: Brad and Mary Barger, Suburban Machine 6 Manufacturing,
Inc.
1.
CALL TO ORDER.
2.
CONSIDERATION TO APPROVE THE MAY 6, MAY 13, AND JUNE 26 HRA
MINUTES.
3.
CONSIDERATION TO ADOPT A RESOLUTION APPROVING THE TIB PLAN FOR
TIF DISTRICT NO. 1-14, SUBURBAN MACHINE & MANUFACTURING, INC.
AND TO CALL FOR A PUBLIC HEARING FOR THE DISPOSITION OF LANDS.
4.
CONSIDERATION TO ADOPT A MEMORANDUM OF UNDERSTANDING BETWEEN
WRIGHT COUNTY AND THE MONTICELLO HRA REGARDING OUTLOT A.
i
COUNTRY CLUB MANOR.
6.
CONSIDERATION OF A FOLLOW-UP TO THE JUNE 10 WORKSHOP PRESENTED
BY MR. PAT PELSTRING.
6.
CONSIDERATION OF PROJECT UPDATES: AROPLAX CORPORATION AND JM
OIL.
7.
CONSIDERATION TO REVIEW BDS, INC. BILLINGS.
6.
OTHER BUSINESS.
9.
ADJOURNMENT.
MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY SPECIAL MEETING
Friday, June 26, 1992 - 8:30 AM
City Hall
MEMBERS PRESENT: Chairperson Al Larson, Ben Smith, Lowell
Schrupp, and Everette Ellison.
MEMBER ABSENT: Tom St. Hilaire.
STAFF PRESENT: 011ie Koropchak.
STAFF ABSENT: Rick Wolfsteller and Jeff O'Neill.
CALL TO ORDER.
Chairperson Al Larson called the special HRA meeting to order
at 8:37 AM.
2. CONSIDEjWTION TO AUTHORIZE BUSINESS DEVELOPMENT SERVICES, IFC.
TO PREPARE T',IF PLAN FOR TJX DISTRICT N0, 1-16, SUBURBAN
MACHINE AND MANUFACTf7[tINO. INC.
Koropchak outlined the background of this development, stating
originally this company contacted Koropchak's office last fall
and on June 8, Mr. Kendall, Mr. Hoglund, and Koropchak visited
the Rogers facility upon their request. The company owners,
Brad and Mary Barger, reside in Monticello and the company
does general machining and has a product line. Customers
include John Deere, Consolidated Freightway, etc. On June 10,
Mr. Kirscht and Koropchak visited the company to further
discuss financial options. The company has a buyer on their
existing property and the HRA received a copy of the company's
letter of commitment for a Monticello location.
The proposed project would be to construct an 11,000 square
foot facility (8,000 sq ft manufacturing and 3,000 eq ft
office with an unfinished 9,000 sq ft mezzinine) on three
acres. Property location being to the east of the Remmele
Addition and Fallon Avenue easement and to the north of
Chelsea Road. Form Credit and the Bargere have agreed on a
purchase price and Taylor Land Surveyors have been given the
go-ahead for plat preparation. Existing employment Is 18 full
time personnel and with a projection of 8 additional within
the next two years. Wages between 810.00 to 813.00.
Mr. Kirscht and Koropchak met with the Bargers again June 23
to define the financial package. Tlme is important as
occupancy promised on the Rogers building is November lot.
Koropchak received a $5,000 check to be held until such time
as the Development Agreement is executed. The uses of funds
HRA Minutes
6-26-92
Page 2
are for land, $50,000 and building, $275,000 for a total
project costs of $325,000. Sources of funds are bank,
$175,000; GMEF, $50,000; CMIF, $50,000; and TIF, $50,000 for
a total of $325,000. The project is estimated to generate
annual taxes of $12,500.
Koropchak reminded the HRA that upon authorization, the HRA
commits to the BDS fee of $3,850, the flat fee for TIF Plan
preparation. The TIF time frame was reviewed with a
completion date of August 10 which would coincide with the
plat schedule. Lowell Schrupp inquired of the amount of
equity into the project, Koropchak responded that TIF is used
as equity in the financial packaging and noted that the
company has purchased $116,000 of equipment which is being
delivered today and is not part of the financial package. It
is the intent of Koropchak to visit Rainbow Enterprises as a
courtesy because Suburban and Rainbow both do general
machining.
Chairperson Larson reported he spoke to Mr. Hoglund who said
In his opinion Suburban Machine and Manufacturing meets the
city's industrial objectives. Lowell Schrupp made a motion
authorizing BDS, Inc. to prepare the TIF Plan for TIF District
No. 1-16 for Suburban Machine & Manufacturing, Inc. The
motion was seconded by Everette Ellison, and without further
discussion the motion passed unanimously.
3. CONSZDERATILON TO SCUEDULE A SPEC3AL HRA MEETING TO ADOPT THE
TIF PLAN FOR TIF DISTRICT NO. 1-14.
Inorder to keep on the suggested time scheduel and to allow
public notice of meeting, the HRA set Monday, July 6, 1992 as
their next meeting date. Meeting place is the City Hall at
7:00 PM, agenda to be mailed prior to meeting. The regular
Wednesday, July 1, 1992 meeting will not take place.
d. ADJOURNMENT.
The special HRA meeting adjourned at 9:00 AM.
011ie Koropchak, HRA Executive Director
MINUTES
MONTIC ELLO HOUSING AND REDEVELOPMENT AUTHORITY SPECIAL MEETING
Wednesday, May 13, 1992 - 6:30 PM
City Hall
MEMBERS PRESENT: Chairperson Al Larson, Ben Smith, Lowell
Schrupp, and Tom St. Hilaire.
MEMBERS ASSENT: Everette Ellison.
STAFF PRESENT: 011ie Koropchak.
STAFF ABSENT: Rick Wolfsteller and Jeff O'Neill.
GUEST: Edward Kruse.
1. CALL TO ORDER.
Chairperson Larson called the meeting to order at 6:30 PM.
2. CONSIDERATION TO DISCUSS THE KRUSE COUNTER-OFFER FOR POTENTIAL
ACQUISITION.
Koropchak reviewed the enclosed agenda information with the
HRA members which outlined the Kruse's counter-offer and the
HRA's offer, the lot size and the county's estimated land
value, necessary contingencies, comparative Briar Oaks lot
sales, current tax and assessment information, estimated base
valuations of seven proposed cottage homes, setback
requirements, and necessary public hearings and plat requests.
Koropchak also informed the HRA that one neighborhood property
owner has called the City Hall asking about the city's intent
for development.
Tom St. Hilaire was confused to why the HRA had covened this
meeting, as he understood a motion had been approved by the
HRA on April 23, 1992 authorizing a firm offer of 920,000
maximum for the Kruoe property. He asked if there was a
mlocommunication, as he felt it was very unfair to ask HRA
members and Mr. Krume to give up additional tiine for a
decision previously made. Mr. Kruse agreed with St. Hilaire.
Koropchak reoponded that otaff invited Mr. Floyd Kruse to
attend the regular May HRA meeting to present a counter-offer,
If a party requests (or Is invited) to be on the regular
ag endo, as a public body, the request should be considered.
Chairperson Larson acknowledged he thought it only right to
hear the request or invitation of a taxpayer.
HRA MINUTES
5-13-92
At the regular May meeting, the HRA tabled the decision to
purchase the Kruse property as they wanted to seek input from
Mr. St. Hilaire regarding the counter-offer. Also, the HRA
requested further study as to the redevelopment and cash flow
feasibility.
Based on the enclosed agenda information, the HRA became aware
of additional obstacles in this project area, the difficulty
to cash flow a project with the redevelopment of single family
homes, and again mentioned other optional sites for
redevelopment. Tom St. Hilaire made a motion that the HRA's
offer stands firm at $20,000, if unacceptable, the project it
discontinued. Ben Smith seconded the motion and without
further discussion the motion passed unanimously. Mr. Kruse
said the offer of $20,000 would have been acceptable in
February but not today.
C9Y§JQE1tATJOF TO AUTHORIZE EDS TO PREPARE A jtES0LUTIOL; AND
PUBLIC HEARING NOTICE FOR ACQUISITION OF THE KRUSE PROPEP.TY.
No action was necessary.
4. ADJOURNMENT.
With no further business, the HRA special meeting adjourned at
6:48 PM.
011ie Koropchak, HRA Executive Director
Page 2
CALL TO ORDER.
Chairperson Larson called the HRA meeting to order at 7 :00 PM.
2. CONSIDERATION TO APPROVE THE APRIL 23, 1992 NRA MINUTES.
Evere tte Ellison asked for a clarification of the last
parag saph, prior to Item No. 6, Page 3, of the m 3nutes.
Chairperson Larson asked for a correction or amendment to the
last paragraph, prior to Item No. 5, Page 2, of the m mutes:
His comment was made as a general statement and was not
Intended to relate directly to the proposed cotteg a home
deve 1 opmen t .
Ben Smith made a motion to approve the April 23, 1992 HRA
minutes as so amended. Seconded by Everette Ellison and with
no further corrections or additions, the minutes were approved
as amended.
3. CONSIDERATION TO NEAR KRi1SE COUNTER-OFFER.
Chairperson Larson welcomed property owner Edward Kruse and
his father, Floyd Kruse. Mr. Kruse made a counter-offer of
$24,000 )$20,000 for lot and $4,000 for demolition) for the
northerly 80 ft of Lots 9 and 10, Block 54. He pointed out
that in his opinion a wooded lot in Monticello was worth more
than 916,000 (lose $4,000 demolition costs) based on the HRA
offer of $20,000. He also noted construction of a new home
would have occurred if the city had not made an error, no need
for a variance. The HRA diecuaced other land caleo, the small
lot ofze, and the need to make the entire project cash flow
and not to Get a precedent.
MINUTES
tdONTICELLO HOUSING AND REDEVELOPMENT
AUTHORITY
Wednesday, May 6, 1992 - 7:00
PM
City Hall
MEMBERS PRESENT:
Chairperson Al Larson,
Ben Smith, Lowell
Schrupp, and Everette Ellison.
MEMBERS ABSENT:
Tom St. Hilaire.
STAFF PRESENT:
011ie Koropchak.
STAFF ABSENT:
Rick Wolfsteller and Jeff
O'Neill.
GUEST PRESENT:
Edward and Floyd Kruse.
CALL TO ORDER.
Chairperson Larson called the HRA meeting to order at 7 :00 PM.
2. CONSIDERATION TO APPROVE THE APRIL 23, 1992 NRA MINUTES.
Evere tte Ellison asked for a clarification of the last
parag saph, prior to Item No. 6, Page 3, of the m 3nutes.
Chairperson Larson asked for a correction or amendment to the
last paragraph, prior to Item No. 5, Page 2, of the m mutes:
His comment was made as a general statement and was not
Intended to relate directly to the proposed cotteg a home
deve 1 opmen t .
Ben Smith made a motion to approve the April 23, 1992 HRA
minutes as so amended. Seconded by Everette Ellison and with
no further corrections or additions, the minutes were approved
as amended.
3. CONSIDERATION TO NEAR KRi1SE COUNTER-OFFER.
Chairperson Larson welcomed property owner Edward Kruse and
his father, Floyd Kruse. Mr. Kruse made a counter-offer of
$24,000 )$20,000 for lot and $4,000 for demolition) for the
northerly 80 ft of Lots 9 and 10, Block 54. He pointed out
that in his opinion a wooded lot in Monticello was worth more
than 916,000 (lose $4,000 demolition costs) based on the HRA
offer of $20,000. He also noted construction of a new home
would have occurred if the city had not made an error, no need
for a variance. The HRA diecuaced other land caleo, the small
lot ofze, and the need to make the entire project cash flow
and not to Get a precedent.
HRA MINUTES
5-6-92
Koropchak noted the lot was less than 10,560 sq ft and asked
if water and sewer services were capped at the property line.
Estimated cost to cap the services is approximately $1,000.
As per Minnesota Statutory and Holmes and Graven, Koropchak
additionally informed the authority of the need to prepare a
redevelopment plan for this redevelopment project which would
be reviewed by the planning agency prior to council holding a
public hearing. Council would consider adoption of the
redevelopment plan inclusive of the method proposed for
financing the project following the public hearing.
For early acquisition, the authority may acquire individual
tracts of real property with approval from the City Council;
however, the Council must hold a public hearing on the
proposed acquisition. Early acquisition does not waive the
requirement for public hearing of the redevelopment plan for
the redevelopment project. Inorder to meet publication
requirements, the soonest the public hearing could be held is
Tuesday, May 26. Mr. Kruse said he had no problem waiting for
the public hearing but did want a decision from the HRA prior
to May 26.
With the counter-offer of $24,000 left on the table, the }IRA
tabled the item to allow further study of the feasibility to
redevelop and cash flow the project, and to allow input from
Mr. Tom St. Hilaire.
Koropchak will follow-up with Kevin Schmidt and Gary Anderson
as to the feasibility of the development size in comparison to
the physical site size and will work with Schmidt and Pat
Pelstring as to whether the proposed redevelopment project
will cash flow. The HRA will meet as soon as possible.
OTHER BUSINESS.
The HRA members received a copy of the letter mailed Mr.
Pudil, Remmele Engineering.
5. ADJOURNMENT.
The HRA meeting adjourned at 7:45 PM.
Q)—% , 1<"Nn91,1.
011ie Koropchak, HRA Executive Director
Page 2
Consideration to Adoot a Resolution Aporovina the TIF Plan for
TI} District No. 1-14j Suburban Machine & Manufacturing. Inc.
and to Call for a Public Hearina for the Disoosition of Lands.
Background and Reference:
Brad and Mary Barger, owners of Suburban Machine &
Manufacturing, Inc., will be present at the HRA meeting. This
will give you, an HRA member, the opportunity to meet the
owners and directly be informed of the company's business,
operation, product -line, and proposed project.
On June 26, the HRA authorized Business Development Services,
Inc. to prepare a TIB Plan for TIF District No. 1-14 for
Suburban Machine & Manufacturing, Inc. A $5,000 check from
the Bargers is being held by the city until such time a
Development Contract is prepared and executed. A copy of the
plan and the resolution for adoption will be presented at the
meeting as the documents were unavailable at the time of
agenda mailing. When the HRA adopts the resolution, you are
approving the establishment of the TIF Plan and TIF District
No. 1-14 for Suburban Machine and Manufacturing, and are
requesting City Council to call a public hearing for the
adoption of the TIP Plan and District Establishment.
Hereafter, the taxing jurisdictions of the county, the school
district, and the hospital district have thirty days to make
written or oral comment.
The company's existing business is located in Rogers, the
company has a buyer for this property with guaranteed
occupancy on November 1. The proposed Monticello project is
for construction of an 11,000 eq ft facility (8,000 eq ft
manufacturing and 3,000 sq ft office with 3,000 eq ft
unfinlohed mezzinine). An agreed upon land price between Farm
Credit and the Bargers has been negotiated for a three acre
lot to the east of Remmele and north of Chelsea Road (See
enclosed map.) The existing employment is 15 full-time
personnel with a projection of eight additional within two
years. Wages range from 810.00 to 813.00.
The project is estimated to generate annual taxes of 812,500
and qualifies as an Economic District with a life duration of
ten years. Direct TIB assistance to the company was
recommended at 850,000 (822,600 for land and 827,500 for site
improvements.) Traditionally, the HRA or city has not sold
bonds for projects under 8100,000. therefore, staff recommends
the HRA consider an internal loan from the city at 6.5%
Interest or authorize funds from the Excess TIP Fund. (See
the enclosed up-to-date Excess TIF financial statement.)
In the most recent past, the Development Contracts between the
HRA and a developer read that funds are disbursed for the land
cost upon certification from the contractor that 30% of the
building construction i• complete and site improvement costa
HRA Agenda
T-6-92
are reimbursed upon certification from the contractor of
completion and payment. Site improvement costs can be
grading, landscaping, curbing, water/sewer hook-up, plat
expenses, etc.
Upon adoption of the resolution, the HRA should call for a
public hearing (August 5) for the disposition of lands. This
will allow time for publication of the public hearing notice
in the local newspaper of not less than ten days but not more
than thirty days.
Alternative Action:
1. A motion to adopt the resolution approving the TIP Plan
for TIP District No. 1-14 for Suburban Machine and
Manufacturing, Inc. and requesting City Council to call
a public hearing for adoption of the plan and district.
Public hearing date of August 10.
15,060
A motion requesting a S" ,000 loan from the city at 6.5%
interest over 10 years or authorizing an expenditure of
880,000 from Excess TIP Funds.
A motion calling for a public hearing for the disposition
of lands, public hearing date of August 5.
2. A motion to deny the adoption of the resolution approving
the TIP Plan for TIP District No. 1-16 for Suburban
Machine a Manufacturing, Inc.
C. gecommendation:
Staff recommends alternative No. 1, as the proposed project is
consistent with the IDC's industrial standards and objectives,
the TIF objectives, the comprehensive plan, and the owner's
reside in Monticello.
pu000rtina Data:
Copy of a map outlining the proposed development area.
Copy of the Excess TIF Fund Statement.
To be presented at the meeting are the resolution and TIP Plan
for TIP District No. 1-14.
Page 2
HOUSING AND REDEVELOPMENT AUTHORITY
City of Monticello
TAX INCREMENT FINANCING POLICY
Program Purpose: The Monticello Housing and Redevelopment-
Authority
edevelopmentAuthority will utilize Tax Increment Financing to support the
community's long-term economic and housing goals.
Policy Considerations: The HRA will analyze and evaluate Tax
Increment Financing proposals based upon the following policy
considerations. Each project shall be measured against these
considerations and the project's value shall be determined, based
upon meeting these considerations.
(11 The project shall be consistent with the City's
Comprehensive Plan.
:2) The project shall demonstrate long-term economic and/or
housing benefits to the community.
(3) The project shall create and/or retain employment for
Monticello residents.
(6) The project shall increase moderate priced housing
options for area residents.
(5) 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.
(8) The project shall be deemed to promote additional
desired *spin-off!" development.
POLICY GUIDELINES
(1) Tax Increment Financing will be considered for use Ln
economic development, redevelopment and specialised
housing projects. The standard level of assistance for
projects shall be as follows
Ci t•'y of MonticcI to
d
u,_ '� d
`1+j i �a
-vl� C,i �pQl
\ _ I wrlk J pt
Al
Chelsea Area Land Use and Circulation Stucly
Concept tial Arca P I an
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HOTSS TO FINANCIAL STATENENTs:
Balance Sheet (1991)
The HRA fund had cash and investment balances of $226,554 as of
12/31/91. The HR.A owed to the City (general fund) $159,000 for
previous loans. The fund balance of $62,560 means that, excluding
all TIP bond debts for individual projects, the HRA would have a
surplus of $61,560 after paying back the $159,000 loan to the City.
Revenue b Expenditures (1991)
The HRA fund showed a surplus of revenue over expenditures in 1991
of $80,984. The HM fund collects all TIP revenue (approximately
$267,000) but only needed to transfer $260,375 to cover bond debt
obligations. This is the main reason the HRA shows excess revenue
in 1991.
1992 Budqet
It is estimated that the HRA will collect $348,000 in TIP revenue
in 1992 and will need to transfer to debt funds $125,675 and pay
principal and interest payments of an additional $43,345. This
should result in a surplus revenue amount of approximately $78,000
more in 1992.
I
L
CITY OF MONTICELLO, IMWESOTA
Statement B-7
HOUSING AND REDEVELOPMENT AUTHORITY FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -
BUDGET (GAAP BASIS) AND ACTUAL
For The Year Ended December 31, 1991
With Comparative Actual Amounts For The Year Ended December 31, 1990
Revenues
Taxes
Interest income
Intergovernmental
Sale of land
Total Revenues
Exaenditure9
Land acquisitions
Legal and professional fees
Interest
Principal payments
Other
Total Expenditures
Excess (Deficiency) of Revenues
over Expenditures
Other Financiga Sources (Uses)
Bond proceeds
Transfers out
Total Other Financing Sources
Excess (Deficiency) of Revenues
and Other Sources over
Expenditures and Other Uses
Beginning fund balance
Prior Period Adjustment
ENDING FUND BALANCE
1991 1990
Budget Actual Actual
$ 265,550 S 285,287 S 262,247
13,300 16,671 13,964
1,055
1
S 278.850 S 303.013 S 276.212
S 200,059
S 11,500 S 15,309 81,920
17,541 17,541 18,694
14,344 14,344 2,150
7.7§Q, 14.460 73.927
S 51.135 S 61.654 S 376.750
S 227.715 S 241.359 S (100.538)
S 256,835
S (165,035) S (160.375) (134.726)
S (165.035) S (160.375) S 122.109
S 62,680 $ 80,984 S 21,571
(18,424) (41,612)
1.617
S 62.560 S 118.424)
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1 11.911 1 2.111 1 2111IS2 O 141,514 6 in,SSS 1 U.S2t 1 111.0 f 14,010 1 719,01: 1 0.1II
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71 1,121 U I'm IM
211 111 901 4.654 5,971 11121
aS1 911 1,111 I 131 m 601 12,535 S,IU
n'm 1N,001 I201O00 21,044
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1 1,131 1 7,197 1 113
u 1 7t5 141 7,114
711 S,tdl S,S12 if/
HIM S MAN Iti'm 19!.001
L 7.10 L111.140 I Ili 1315 111.10 211141
111111 1241.140 11.111 112!.82 1 94.114 Lill 1_314 1_115.111 1167.157
6 IU,iIS ! 114,115 I 222,2!0 1 715,711
1 111,0! 214,2:9 114,121
111.141 LI.Im 24,124 11.1421 I 8.914 19.515 111.115 1111.111 121311 714,411 40.142
1 17.111 1 1.01 1111.141 111821 1_ 12.10 118,3!4 1114.81 L11I.IH 121.211 1 1.211.7iI 1 ASS
113.111 1 1.15 15n.n1 1_121 I In.!!1 S Jim 1119.71] 1 111m t-11, 3 I t.114.7d2 11j=
J
SECTION XV
TAX INCREMENT FINANCING PLAN FOR
TAR INCREMENT FINANCING DISTRICT NO. 1-14
Subsection 13.1. Statement nf0pj iv See Subsection 1.4 of the
Redevelopment Platt.
Subsection 13.2. The Redevelmtment Plan. See Section I, Subsections 1.1
through 1.20.
Subsection 13.3. Deet-ription of the Proied. The project, located within Tax
Increment Financing District No. 1- 14, consists of the construction of an 11,000
square foot office/manufacturing facility. This facility is to be constructed In the
m nmer of 1992 and completed by January 2, 1993. The company currently employs
IS people. It is anticipated that 8 additional full-time positions will be created as a
result of this project.
Subsection 13.4. Parcels to be Included in Ta: Increment Fi nacing District
No_ 1-14. The following property Is located in the City of Monticello, County of
Wright, State of Minnesota.
3 scree of laud located in Lot 10 of AUDITOR'S SUBDIVISION NO. 1, according
to the recorded map thereof, being in the Northwest Quarter of the Northwest Quarter
of Section 13, Township 121, Range 23, Wright County, Minnesota lying easterly of
REMMELE ADDITION according to the recorded plat thereof, lying southwest of
Interstate No. 94 and lying northeasterly of the northerly right of way of Chelsea
Road.
Part of PID Number: 133-011.000101
Subsection 13.3. P=IA in Acii.iku. no Authority Intends to acquire the
property listed In SubsectionAVA, which property is located within Tax Increment
Fimocin Diet rkt No. 1-14. 6-"k
Properties ulentified for acquisition will be acquired either by the City or the
Authority in order to accomplish public improvements listed in Subsection 1.11 of the
Redevelopment Plan hereof.
XV -I
Subsection 15.6. Development Activity in Tax In_reW��t Finsnrino 17igtrirt
No. 1-14 for Which Contracts will be Signed. The following coatract(s) will be
entered Into by the Housing and Redevelopment Authority and the person(s) named
below:
Prior to the certification of Tax Increment Financing District No. 1-14. a
Development and Assessment Agreement will be executed between We Housing and
Redevelopment Authority of Monticello and Brad and May Barger.
m o. e
Subsection 15.7. Othcr Sueoif►c Development FjRCUW to Occur within
Redeveloome f En^ern No_ 1.
(As specific development is expected to occur, it will be Inserted into this Subsection.)
Subsection 15.8. Estimated Public jmptyvement Costa and SM=rtive Da a.
See Subsection 1.10 of the Redevelopment Plan for estimated costs associated with
Redevelopment Project No. 1.
Subsection 15.9. Sources of Revenue. Public improvement cWts, and other
coats outlined In Subsection 1.10 of the Redevelopment Plan will be financed through
the anted collection of tax increments.
Subsection 15.10. QSi&al Tax Caoarb. Pursuant to Section 469.177, Subd.
I, of the Tax Increment Financing Act, We original tax capacity value for Tax
Increment Financing District No. 1-14 is estimated to be $20, based on the tax
capacity value of all taxable real property within Tax Increment Financing District
No. 1.14. Pursuant to Section 469.177, Subds. I and 4, of the Tax lwrcrnent
Financing Act, the County Auditor of Wright County (the "County Auditor") SMI
certify in each year the amount by which the original tax capacity value has increased
or decreased as a result in a change in tax-exempt property within Tax Increment
Finaaclog District No. 1-14, reduction or enlargement of Tax Increment Financing
District No. 1-14 or changes in connection with previously Issued building permits,
In any year in which the current tax capacity value of Tax Increment Financing
District No. 1.14 declines below the original tax capacity value, no tax capacity value
will be captured and no tax Increment will be payable to the Authority.
Subsection 15.11. EA1111eted raphlad Tax Canacill Valise. Pursuaritto Section
469.173, Subd. 1, and Section 469.177, SuM. 2, of the Tax Increment Financing
Act, the estimated captured tax capacity value in Tax Increment Financing District
No. 1.14 at find completion will approximate $12,580. This estimated annual
captured capacity value is determined in the following manner:
XV -2
Estimated Tax Capacity Value at Final Completion $12,600
Original Tax Capacity
Captured Tax Capacity Value
$12,580
Please refer to Exhibit XV -B for the year-to-year expected tax increment for
Tax Increment Financing District No. 1-14.
Subsection 13.12. Tyne of Tax_ Lcrgment. Financing Ifiggig. Tax Increment
Financing District No. 1- 14, Is pursuant to Section 469.174, Subd. 12, an Economic
Development District as described below:
"Econonde Development District' means a type of tax increment financing district
which consists of any project, or portions of a project not meeting the requirements
found in the definition of redevelopment district or housing district, but which the
authority finds to be in the public interest because:
(a) It will discourage commerce, industry or manufacturing from moving Weir
operations to another state; or
(b) It will result in increased employment in We municipality; or
(c) It will result in the preservation and enhancement of the tax base of the
municipality.'
Subsection 15.13. D=tion of Tax Inaement Financing DLatriet No. 1-14.
Pursuant to Section 469.176, Subd. 1, of the Tax Increment Financing Act, the
duration of Tax Increment Financing District No. 1-14 will be ten (10) years from the
approval of the Tax Increment Financing Plan, or eight (8) years from receipt of the
fiat tax increment, whichever Is less.
Subsection 13.14. Prr gored Dfivelnr nnt4sln, pursuant to
hM s=AQWAfrltutelt, Section 469.173, Subd. 1(7), specific findings and analysis
relating to the proposed development in Tax Increment Financing District No. 1-14.
Additionol relevant documentation relating to the findings and analysis will be on file
and available for review in the City Administrator's office.
XV -3
Subsection 15. 13. Estimated Iggns,1 an Mer Tat_in$ Iurisdictiam.
Test No- t: The estimated impact on other taking jurisdic-door assumes
construction would have occurred without the creation of Tax Increment
Financing District No. 1-14. If the construction is a result of Tax Increment
Financing, the impact is $0 to other entities.
Test No- 2: Notwithstanding the fact that the fiscal impact on the other taxing
jurisdictions is $0 due to the fact that the financing would not have occured
without the assistance of the City, the following estimated impact of Tax
Increment Financing District No. 1-14 would be as follows if Test No. 1(the
'but for" tett) was cot met:
Tox Baso
Sndly payable 1992
,
Wright County $44,907,599
City of Monticello $13,509,233
I.S.D. No. 862 $18,171.778
Wright County
City of Mondallo
I.S.D. No. 882
Hospital Ohara
TOTALS
IMPACr ON TAX BASE
Origins$ Net
Futuro Net -
Tax Capattity
Tax Capacity
Fayable 1992 '
Payable l992
$20
$12,600
$20
$12,600
$20
$12,600
IMPACT ON TAX CAPACITY
MILL RATRS
(boss TO Rate 1992
30.427
16.300
50.327
2.624
99.87896 .--- --•
Cappued Net.
Tart capacity
District 96
Payable •1992 • ''
of 9ndty' .:'
$12,380
.028%
$12,380
.081%
$12.58U
.069%
FotlnHil'1'ltxq
$ 3,628 _
2,076
6,331
330
$12.563'
Please refer to Exhibit XV -B for the year-to-year expected tax Increment for
Tax Increment Financing District No. 1.14.
XV -4
Subsection 15.16. Cash Flow A_ssumptogig nd AnaLyaia.
A. FulTax CapaeilX. The estimated future tax capacity of Tax Increment
Financing District No. 1-14 at final completion as determined by the City
Assessor is $12,600, payable 1994. Please refer to Exhibit XV-B for the year-
to-year expected tax increment from Tax Increment Financing District No. 1-
14.
B. EMIected Tiubg. The payment of the first full tax increment from Tax
Increment Financing District No. 1-14 will be received by the Authority in
1994.
C. Orlain8Tax Capacity. The County Assessor's records show the original tax
capacity of Tax Increment Financing District No. 1-14 to be $20 for taxes in
1991 and payable in 1992.
D. Gross Tax Capacity Rate. The gross tax capacity rate is 99.878 percent.
E. 't' * In = u. Total tax increment at the completion of all redevelopment
activity has been calculated assuming a static gross tax capacity rate and a
valuation increased by zero percent (0%) compounded annually.
F. nditureq. Capital expenditures are a summary of die items
associated with Ute public Improvement costs set forth in Subsection 10.8 and
are to be financed from the proceeds of the Bonds and tax increment revenue.
Subsection 13.17. Ea imnted Arnotint of nonded Indeblcd=. It is anticipated
that $89.000 of bonded indebtedness will be incurred with respect to this portion of
the Redevelopment Project.
Subsection 13.18. Tax Increment Financing- Account for Tax Increment
Financing Diat_rict Ne_ 1-14, The tax incrcment received with respect to Tax
Increment Financing District No. 1-14 will be submitted by the Authority to the City
and segregated by the Authority in a special account or accounts (rite °Tax Increment
Account") on Its official books and records or as otherwise established by resolution
of the City to be held by a trustee or trustees for the benefit of holders of the Bonds.
Subsection 15.19. Modirleation of Tax lacre cent FinnneingDistriet No_ 1-14.
As of August 10, 1992, there have been no modifications made to Tax Increment
Ficanohtg District No. 1.14.
XV -5
EXHIBIT XV -A
BOUNDARY MAP OP TAX INCREMENT FINANCING DISTRICT NO. 1.14
XV•6
EXIUBTP XV -B
EXPECTED YEAR-TO-YEAR TAX INCREMENTS
RELATING TO TAX INCREMENT FINANCING DISTRICT NO. 1-14
AND TAX CAPACITY ANALYSIS
ADJu331= FAME:
A. July, 1992
Establishment Date
B. January 2, 1992
Base Year Capacity Date
C. $20
Base Year Capacity Value
D. January 2, 1987
Fifth Preceding Year Capacity Date
E. $49
Fifth Preceding Year Capacity Value
F. S(29)
Five Year Capacity Value Increase
G. N/A
Five Year Total Increase Ratio
H. N/A
Five Year Average Increase Ratio
1. 0
Annual Base Year Adjustment Factor
.Baas Adl.
Ad). Future Net Cap
'Annul,
Year' , TC Factur
:Base TC TC TC Rate
. TI
r 1991/92 $20 0
$12.600 .99878
1992/93
$20 S12,580
so
1993/94
$20 $12,580
$12.563
1994/95
$20 $12,560
$12,565
1995/96
$20 $12,580
$12,565
19%/97
$20 $12,560
S12,565 !.
11997198
$20 $12,580
$12,565
1998/99
$20 $12,580
$12,565
19998000
$20 $12,580
$12,565
2000/2001
$20 $12,580
$12,565
Annul tart Increment $12,565.
XV -7
EXHIBIT XV -C
DISI L -r CERTIFICATION FORM
Date Prepared: July 1 199z
Nese of District or Modification: Tax Inurement FhMcing District No. 1.14
Date of City Council Approval: Augtt 10, 1992
ECONOMIC 12EVELOPMP-NT DISMICT URnFTCA ON
At the dme ofdLttdct creation or mWification. the fallaiving conditions 00 :
-X— The project does not meet the requirements found in the definition of a
redevelopment district, housing district, or a mined underground space
development district.
The project was created after August 1, 1979, and was designated an
economic development tax increment district, as defined in MW==
Sta0lsce, Section 469.174, Subd. 12, because:
-1L a) It will discourage commerce, industry or manufacturing
from moving their operations to another state.
-2L b) It will result in increased employment in the municipality.
_,jf,_ e) It will result in preservation and enhancement of the tax
base of the municipality.
Stl d .n+.n�siion on fie:
_ Lead Use Plan Map
X_ City Council Resolution
"ad Objecdvcs
_ Other:
This Form Prepared by: 8 -1 -ma DeveiRpment S . i •a nc
WSW Building Condition Data Collected by: NLA
Ducumeruation in suppurt of District Certillcatiun is un file at the City offices.
XV -8
0
iJ KI11i7
Chronology of Resolutions
Establishing the Development Program,
the Development District, the Tax Increment Financing Plans,
and the Tax Increment Flnancing Districts
DEVELOPMENT DISTRICT NO. 1
TAX INCREMENT FINANCING DISTRICT NO. 1-14
20 Add
luly 6. 199► HRA approval of the Modified Redevelopment Pian.
Letters sent to Wright County, Independent School
District No. 882, and hospital District.
Notice of Public Hearing sent to local newspaper.
juin 27. 1992 Resolution of the City Council calling for a Public
Hearing.
July 22. 1992 Notice of Public Hearing Is publiehed in the local
newspaper, calling for a Public Headq on August
1o, 1992.
Anmr1, 1992 Resolution of the City Council taodifying the
Redevelopment Plan for Redevelopment Project No.
I and modifying the Tax Increment Financing Plan
for Tax Increment Financing District No. 1.14.
XV -9
6 Tax Increment Financing Distrigt No. 1.14
(As adopted August 10, 1992)
Lead Acquisition 522,300
GtadWOn-Site Improvements47.073
Subtotal $69,575
Administration 00
Subtotal $77,07$
Capitalised Interest 11,925
r TOTAL i
` (As adopted November, 1982)
' Subsection 1.11. LuWjj . All new and/or existing development on latus
identified on Exhibits I-C through 1-F as 'property to be acquired" or "possible
acquisition" will be subject to the following uses and requirements:
1. Una Permitted in Designated Areaa.
i
A. lodualrlsi--All permitted, accessory and conditional uses as specified in
Chapters 15 and 16, Monticello Zoning Ordinance, relating to I. I (Light
r Industry) sad 1-2 (Heavy Industry) torus. Planned Unit Developments,
where applicable, will be consldered.
b. H= ngC t o1dgntiaI--All permitted, accessory and conditional uses as
specified in Chapters 8 and 10, Monticello Zoning Ordinance, relating
to R-3 (Medium Density Residential) and R-B (Residential-Buainess)
zones. Planned Unit Developments, where feasible, will be encouraged.
C. MotomaZalolu ru diol,.-All perntltted, accessory. and conditional uses
inaccofttmwe with the provisions governing all 'El" zones and including
R-B, ptuvidiug however that any commercial development in an R-B
sone shall be coordinated with the goals and objectives of the Housing
Plea. Plaswal Unit Developments, especially in the B-3 zone (Highway
Business). will be encouraged.
I.36
1
Commissioner introduced the following resolution,
the reading of which was dispensed with by unanimous consent, and moved
its adoption:
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO
WRIGHT COUNTY
STATE OF MINNESOTA
Resolution No.
A RESOLUTION RELATING TO THE MODIFICATION, BY
THE HOUSING AND REDEVELOPMENT AUTHORITY IN
AND FOR THE CITY OF MONTICELLO, OF THE
REDEVELOPMENT PLAN RELATING TO
REDEVELOPMENT PROJECT NO. 1, THE MODIFICATION
OF THE TAX INCREMENT FINANCING PLANS
RELATING TO TAX INCREMENT FINANCING DISTRICTS
NOS. 1-1 THROUGH 1-13 AND THE APPROVAL AND
ADOPTION OF THE TAX INCREMENT FINANCING
PLAN FOR TAX INCREMENT FINANCING DISTRICT NO.
1-14, ALL LOCATED WITHIN REDEVELOPMENT PROJECT
NO. 1.
BE IT RESOLVED by the Commissioners (the 'Commissioners") of
the Housing and Redevelopment Authority (the 'Authority') in and for the
City of Monticello, Minnesota (the "City"), as follows:
Section 1. Recitals.
1.01. It has been proposed that the Authority modify, by increased
project costs, Redevelopment Project No. 1, pursuant to and in accordance
with Minnesota Statutes, Sections 469.001 to 469.047, inclusive, as amended.
It has been further proposed that the Authority modify, by increased project
costs, the Tau Increment Financing Plans relating to Tax Increment Financing
Districts Nos. 1-1 through 1-13 and establish Tax Increment Financing
District No. 1-14 and approve and adopt the Tax Increment Financing Plans
relating thereto, all located within Redevelopment Project No. 1, pursuant to
and in accordance with Minnesota Statutes, Sections 469.174 to 469.179,
inclusive, as amended.
1.02. The Authority has investigated the facts and has caused to
be prepared a proposed Modified Redevelopment Plan (the "Modified
Redevelopment Plan") for Redevelopment Project No. 1, defining more
precisely the increased project costs to be made to Redevelopment Project
No. 1, the proposed Modified Tax Increment Financing Plans for Tax
Increment Financing Districts Nos. 1-1 through 1-13 and Tax Increment
Financing Plan (the "Tax Increment Financing Plan") for Tax Increment
Financing District No. 1-14 (collectively referred to as the "Plans").
1.03. The Authority and the City have performed all actions
required by law to be performed prior to the modification of Redevelopment
Project No. 1, the modification of Tax Increment Financing Districts Nos.
1-1 through 1-13 and the establishment of Tax Increment Financing District
No. 1-14 and the adoption of the Plans relating thereto.
1.04. The Authority hereby determines that it is necessary and in
the best interest of the City at this time to modify Redevelopment Project No.
1, to modify Tax Increment Financing Districts Nos. 1-1 through 1-13 and
to establish Tax Increment Financing District No. 1-14 and approve the Plans
relating thereto, and to request that the City Council (the *Council") hold a
public hearing relating to the above -stated matters.
-2-
Section 2.
2.01. Subject to the finding, determination, and approval of the
Modified Redevelopment Plan for Redevelopment Project No. 1 by the City
Council of the City, the Modified Redevelopment Plan for Redevelopment
Project No. 1 is hereby approved by the Commissioners of the Authority.
The increased project costs shall be described in the Modified Redevelopment
Plan for Redevelopment Project No. 1, approved in Section 4 hereof.
Section 3. Approval of the Tax Increment Financing Plans for
Tax Increment Financinst Districts Nos. 1-1 through 1-14.
3.01. Subject to the finding, determination, and approval of the
Modified Tax Increment Financing Plans for Tax Increment Financing
Districts Nos. 1-1 through 1-13 and Tax Increment Financing Plan for Tax
Increment Financing District No. 1-14 by the Council of the City, the Tax
Increment Financing Plans for Tax Increment Financing Districts Nos. 1-1
through 1-14 are hereby approved by the Commissioners of the Authority.
Section 4. Approval of the Respective Plans.
4.01. The Plans presented to the Authority on this date, are
hereby approved and adopted by the Authority and shall be forwarded to the
Council with the request that the Council hold a public hearing relating to the
adoption of the Plans for Redevelopment Project No. 1 and Tax Increment
Financing Districts Nos. 1-1 through 1-14.
Section S. Disposition of Public Lands.
5.01. The Authority held a public hearing, as of this date,
regarding the disposition of public lands. The Authority hereby verifies that
said public hearing was held and duly authorizes the City Attorney and City
staff to proceed with the implementation of the necessary documentation
relating to said disposition of public lands.
1�15
Section 6. Filing of Plans.
6.01. The Authority shall cause the Plans, all as approved and
adopted, to be filed with the Office of Minnesota Department of Trade and
Economic Development.
Attest:
011ie Koropchak, Executive Director
(SEAL)
-4-
Chairman
HRA Agenda - 7/6/92
6. Consideration of authorizing memorandum of understandinq
between Wriqht County and HRA. (R.W.)
A. REFERENCE AND BACKGROUND:
The City Council is requesting the HRA to use its authority to
enter into an agreement with Wright County for the eventual
purchase of Outlot A, Country Club Manor. The City of
Monticello In 1978 constructed Country Club Road and installed
sewer and water improvements to Outlot A, Country Club Manor.
The special assessments on this parcel have grown through
delinquencies to a total of over $550,000; and as a result,
the parcel has been tax forfeited to the County for nonpayment
of taxes. The City Council has, for a number of years, been
trying to acquire this property in lieu of the special
assessments owing in an effort to promote development of the
parcel to recapture some or all of our special assessment
debt.
Since the tax forfeited parcel would soon be coming up for
public sale, the Council felt it would be in the best interest
of the City to acquire the parcel directly and work with
future developers for developing the property either
residentially or commercially ourselves. When parcels are tax
forfeited and the County wishes to turn over the property to
the City in lieu of taxes and assessments, state statutes
allow for this procedure to take place through a housing and
redeveloped authority. By the HRA entering into this
memorandum of understanding with the County, the City Council
did not intend for the HRA to assume any obligation for
repayment of the special assessments or any associated cost
with this acquisition, only to use the HRA's authority
allowing the City to acquire title to the property. It is
hoped by the City Council that the City will be able to
recapture more of its special assessment debt by owning the
property and working with future developers than we would have
by allowing the County to proceed under the tax forfeiture
sale method.
Basically, the memorandum of understanding will require the
City to pay $0,727.26 in property taxes upon issuance of a
state deed for the property. Excluding the property from the
normal tax forfeiture proceedings and turning it over to the
City requires the use of the HRA's authority. From the City's
standpoint, the HRA is not being asked to become Involved in
marketing the property in an attempt to reimburse the City for
our special assessments outstanding, although if the HRA had
a development proposal, I'm sure the City Council would be
very interested. In the meantime, any cost associated with
this transfer of ownership to the City from the County would
be either picked up by the general fund or reimbursed to the
HRA. At the time the City is able to find a developer
interested in residential or commercial development for this
parcel, the HRA will be asked to transfer their Interest in
the property.
Mr. Rick Wolfsteller
Monticello City Administrator
250 Bast Broadway
Monticello, Minnesota 55362
R8: Country Club Manor, Outlot A
Dear Rick:
Enclosed you will find two copies of a Memorandum of Understanding
between Wright County and the Monticello BBA regarding Outlot A, Country
Club Manor. These copies have already been signed by representatives of
Wright County. Please obtain the necessary signatures on both copies and
return one copy to me.
Let me know if you have any questions or concerns.
Ver ruly yours,
Bri J. Ael s
Assistant Wri County Attorney
BJA/ j b
Enclosure
1
WRIGHT COUNTY
'
Office of County Attorney
x z
z
0
Wright County Government Center
6 Q
10 N. W. 2nd Street
dY
Buffalo, Minnesota 55313.1193
'►eee
Wyman A. Nelson
Phone: (612) 682.7300 Metro: (612) 3396881
C�Y Attomo
ToU Free: 1$00.362.3667 Fax: (612) 6828178
Thomas N. Kelly
Chic) • C.uw,no/ Q.—
A— L. noh—pt
Th— C. M"
Brian J. Asleson
ue.oJ.rotmra
CAW. Lsod U,t—
r m Huai.
4tA4q A Mott[
10 June 1992
Mr. Rick Wolfsteller
Monticello City Administrator
250 Bast Broadway
Monticello, Minnesota 55362
R8: Country Club Manor, Outlot A
Dear Rick:
Enclosed you will find two copies of a Memorandum of Understanding
between Wright County and the Monticello BBA regarding Outlot A, Country
Club Manor. These copies have already been signed by representatives of
Wright County. Please obtain the necessary signatures on both copies and
return one copy to me.
Let me know if you have any questions or concerns.
Ver ruly yours,
Bri J. Ael s
Assistant Wri County Attorney
BJA/ j b
Enclosure
1
MEMORANDUM OF UNDERSTANDING BETWEEN
COUNTY OF WRIGHT MQ TU MONTJC,ELLO
HOUSING AND REDEVELOPMENT AUTHORITY
WHEREAS, The parcel of land known as Outlot A, Country Club
Manor, Parcel No. 155-033-000010, is among those properties being
prepared for public sale under the tax forfeit land sales
procedures of Minnesota Statutes Chapter 282; and
WHEREAS, Outstanding taxes through 1992 on this parcel total
$6,402.39, with penalties and interest; and
WHEREAS, Outstanding special assessments on the property total
$554,494.73 with penalties and interest; and
WHEREAS, This parcel is contained within an R-3 medium density
residential zoning district of the City of Monticello; and
WHEREAS, The Monticello Housing and Redevelopment Authority
(HRA) is interested in seeing residential development occur on this
property; and
WHEREAS, It appears unlikely that a private developer would
acquire this property because of the magnitude of special
assessments owed to the City of Monticello;
NOW, THEREFORE, The County of Wright and Monticello ERA agree
as follows:
1. That the above described parcel is to be conveyed to the
Monticello HRA, as per Minnesota Statutes Section 282.01, Subd. 1,
contingent, of course, upon the approval of a State deed by the
Department of Revenue.
2. That the basic sale price for said parcel is to be waived,
with the understanding that the Monticello HRA may reconvey the
property to a private party in hopes of recovering the special
assessments due on the property.
3. That any fees for the State deed and any other
miscellaneous costs related to this conveyance shall be the
responsibility of the Monticello NRA.
4. That the outstanding real estate taxes, without penalties
and interest, totaling $4,327.26, shall be paid by the Monticello
HRA to the County upon issuance of the State deed for the property.
5. That, in light of the close proximity of this parcel to
Interstate 94, the City of Monticello may construct an earthen berm
on the property for the purpose of providing visual and sound
screening from the freeway.
M
6. That the construction of said berm may be undertaken prior
to the actual conveyance to the Monticello HRA.
7. That the fill material used to construct the berm may
include such items as brick, concrete, asphalt, and other inert
materials, but that any items such as appliances or tires must be
removed from the source of the fill prior to placement in the berm.
S. That the parties to this Memorandum of Understanding may
make such modifications and amendments as will properly carry out
the intent of this Agreement. Such modifications and amendments
shall be in writing.
Dated: June �_, 1994. COUNTY OF WRIGHT
By `Y �(
Wes Nittkowski Chairperson
Wright County Board
By '�—
sic rd W. No rnn
County Coordinat
Dated: June , 1993. MONTICELLO HOUSING AND
REDEVELOPMENT AUTHORITY
By
Al Larson Chairperson
Monticello HRA
By
011ie Roropchak
Executive Secretary
Monticello HRA
TIE
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141,
TOTE i .,' ,,,_ •1' '� r1C •�.�•s �wrcc' ,�
.
t MtGNwar
� i
NO- 94
BURLINGTON NORTHERN RAILROAD
June 15, 1992
J & M Oil Company, Inc.
8141 Southway Drive
St. Cloud, MN 68101
Dear Sin
Logistics A Property Services
4105 N. Lexington Avenue
suite 200
Arden hills, MN 55128
(619) 490-6100
Subject Sale -of Burtluglon Northern property covered under leuse No.(s) 248586
located at Mounk ello, MN
Burlington Northern Is considering selling the subject lease alte(s). The sale would be
subject to the following general conditioner
• Approval by our Operating department.
a Conveyance by Quit claim deed.
a sale may Include additional property outside of the current leased area to preclude the
Burlington Northern from being left with any Irregular-shaped parcels.
a Acquisition by purchaser of any flurlinglon Northern owned trackage located on the
sale parcel and generally serving only your leased elle. Burlington Northern may elect
to retain an easement Nlthln the sale area, should we need to maintain ownership of
trackage.
• Reservation of required roadways or other utilities as determined by Burlington
Northern.
e Bele consideration will tw based on fair market value.
If you have an Interest In sequlring property based upon these general conditions, please
Indicate by signing In the space below and returning the letter to tills office within the
following JO days. I shall then begin the pmeass of securing approval by the railroad and
obtaining the requlred date to present a formal onto proposal to you.
Thank you for your consideration In this mattor. Should you need additional Information,
please call me. We will contact you upon receipt of this letter acknowledging your
Interest In acquiring your loosed parcel.
Druce R. Oyp �
Manager, Logletles ft Property Services
Purchasers edguature and date
250 East Broadway
P. O. Box 1147
Monticello, MN
55362.9245
MEMO
Phone: (612) 295.2711
Metro: (612) 333-5739
Fax. (612) 295.4404
TO: Bill Aydt, Jim Moores, Jeff Michaelis, Pat Tracy, Bruce opp,
Al Larson, Rick Wolfsteller, John Simola, 011ie Roropchak, and
Ren Maus
FROM: Jeff O'Neill, Assistant Administrato��
DATE: June 2, 1992 rAL
RE: Bulk fuel oil relocation plan
This is a note to let you know that City staff has not been able to
prepare a bulk fuel oil relocation plan because we have not received the
bulk tank relocation cost estimates from Jim Moores, Bill Aydt, and Jeff
Michaelis. As you recall, at the previous meeting it was indicated that
the bulk fuel operators would supply City staff with cost estimates to
relocate the existing bulk tanks to a site approximately a mile away.
They would also develop cost estimates to relocate their facilities
elsewhere on the same site. These cost estimates were to be provided to
City staff as soon as possible to assist City staff in development of a
relocation plan.
City staff looks forward to moving forward in development of a relocation
plan as soon as we receive the necessary relocation cost information from
the bulk fuel tank operators. For your information, I have attached
another copy of the summary of our last meeting held April 16, 1992. If
you should have any questions on the status of this project, please call.
250 East Broadway
P. O. Box 1147
Monticello, MN
55362-9245
MEMO
Phone: (612) 295.2711
Metro: (612) 333-5739
Fax: (612) 295-4404
C0
TOs Bill Aydt, Jim Moores, Jeff Michaelis, Pat Tracy, Bruce Opp of
Burlington Northern, Rick Wolfsteller, John Simola, 011ie
Roropchak, and Ren Maus
FROM: Jeff O'Neill, Assistant Administrator
DATE: April 16, 1992
This memo summarizes the meeting of April 15, 1992. The meeting was
attended by Bill Aydt, Jim Moores, Jeff Michaelis, Bruce Opp, John
Simola, and myself. The purpose of the meeting was to follow up on the
previous meeting and to establish a plan of action. Following are the
items that were discussed at the meeting:
1. Bruce Opp was brought up to date on the situation in general.
The group was informed that Pat Tracy was notified of the
meeting by Jim Moores and through correspondence sent by City
staff.
2. Jim Moores reported that J.M. tanks are registered. Jeff
Michaelis reported that the Riverside oil tanks were not
registered up until last week. Michaelis indicated that he
does not think that the former Nelson oil tanks are registered
with the MPCA.
3. Jeff O'Neill reviewed the cost estimates to determine the
extent of pollution at the site submitted by American
Engineering Testing. O'Neill noted that the cost of the phase
I study amounts to $5,470. Information regarding the scope of
the study is attached. Additional information was obtained
from American Engineering Testing regarding the potential for
added expense to study the site in the event pollution is
found. It was noted that if the ground water is not impacted,
Memo
April 16, 1992
Page 2
the additional study to detect contamination could cost from
$2,000 to $20,000. The actual cost to treat the soil could
range from $20,000 to $100,000. If ground water is impacted,
the cost rises accordingly. At least three monitoring wells
would need to be installed at the site at the cost of $2,000
apiece. The cost to remedy the problem could cost tens of
thousands of dollars if ground water treatment systems are
required.
The group reviewed the cost estimates from American Engineering and
concluded that it would be premature to order the phase I soil borings
until the following planning has taken place:
Develop a relocation plan. It was the consensus of the group
that a relocation plan should be prepared prior to testing so
that the tank operators would have some options in the event
pollution is found on the site. The operators did not want to
be in a situation where they would be forced to move off the
site by the PCA prior to having a place to relocate to.
2. Jim Moores, Bill Aydt, and Jeff Michaelis indicated that they
would supply City staff with cost estimates to relocate the
existing bulk tanks to a site approximately a mile away. They
would also develop cost estimates to relocate their facilities
elsewhere on the same site. These cost estimates would be
provided to City staff as soon as possible to assist in
development of a relocation plan.
It was determined that the annual lease rate, including taxes
and assessments, for use of the BN property, is about
31,000/year.
3. O'Neill and Simola stated that they would work with the City
Administrator, HRA, and Economic Development Director to find
a suitable site in the industrial park area with the goal of
keeping costs down as much as possible. They reported that
they would work closely with Bruce Opp of Burlington Northern
throughout the process and take advantage of any opportunities
to buy or trade land. Bruce Opp indicated that BN is willing
to listen to proposals and would likely be interested in
selling the property or trading it for other property.
Another meeting of the group was scheduled tentatively for three to four
weeks from April 19. The final date will be determined by City staff
depending on the progress on research and plan development.
If you should have any questions, or if you have anything to add, please
contact me.
May 22, 1992
Ms. 011ie Koropchak
City of Monticello
250 East Broadway
P.O. Box 1147
Monticello, MN 55362
STATE31E VT .
Business Development Services, Inc.
Consulting Services—April 16, 1992 through May 14, 1992
A=Iax Hours
4/15/92
LPK-Follow-up with 011ie; Jerry Schoen
.50
EO--Aroplax Business Plan generation
.75
4/16/92
EO-Aroplax Business Plan generation
3.50
4/17/92
EO--Aroplax Business Pian generation
2.00
4/20/92
LPK-Follow-up with Carol Presley -Olson; Jerry
.75
4/20/92
EO -Administrative
1.00
4/21/92
EO -Finished Aroplax Business Plan
2.00
4/23/92
LPK--Aroplax Business Plan
1.50
4/28/92
LPK-DTED, Jerry Schoen, Business Plan revisions
.75
5/11/92
LPK-Financing activity; DTED; OMNI; Aroplax
1.25
5/12192
EO -Meeting re: Aroplax
.50
5/13/92
EO.-Aroplax - Projections for 1992, 1993, and 1994
121
Total Hours
15.75
Ms. 011ie Koropchak
Page 2
Eric Olson -11.00 Hours ® $55/Hour
4.75 Hem ® $75/Hour
TOTAL AMOUNT DUE
$605.00
356.25
$96im
CURRENT OVER 30 OVER Q OVER
$961.25
TERMS: NET DUE UPON RECEIPT, 1.33% PER MONTH SERVICE CHARGE ON
PAST DUE ACCOUNTS
I
- -- - -- - - - - B.DS-
Business Cevelcpmertt Services. Inc.
June 23, 1992
Ms. 011ie Koropchak
City of Monticello
250 Fast Broadway
P.O. Box 1147
Monticello, WIN 55362
STATEMENT
Consulting Services -May 15, 1992 through June 14, 1992
A=lga
5/15/92
EJZ-Revisions for Aroplax projections for Lenny
1.00
5/18/92
LPK-Application and projection information for Amplax
1.25
5/20/92
LPK-Met with Marquette Bank -New Hope re: project finaaeing;
Project finance and application activity for Amplax
2.75
5/21/92
LPK-Aroplax Application Activities
2.25
5/22/92
UK -Project financing for Aroplax
1.75
5/27/92
LPK-Aroplax Projections
.75
5/29/92
EO --Statement generation for Aroplax
2.50
6/1/92
EO--Aroplax projection generation and revisions
3.50
6/4/92
EO--Aroplax Central Initiative Fund Application
1.00
6/10/92
PWP--TIF/Joint Venture Presentmion and Preparation
Total Hours
20.00
Ms. 011ie Koropchak
Page 2
Eric Olson -7.00 Hours ® E55/Hour $ 385.00
13.00 Hours a E75/Hour 975.00
TOTAL AMOUNT DUE
$1,360.00
CURRENT OVER]0 OVER 60 OVER 90
$1,360.00
TERMS: NET DUE UPON RECEIPT, 1.33% PER MONTH SERVICE CHARGE ON
PAST DUE ACCOUNTS