HRA Agenda 09-29-1992MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, August 5, 1992 - 7:00 PM
City Hall
MEMBERS PRESENT: Chairperson Al Larson, Ben Smith, Everette
Ellison, and Tom St. Hilaire (tardy).
MEMBER ABSENT: Lowell Schrupp.
STAFF PRESENT: Jeff O'Neill, Gary Anderson, and 011ie
Koropchak.
STAFF ABSENT: Rick Wolfsteller.
1. CALL TO ORDER.
Chairperson Larson called the HRA meeting to order at 7:00 PM.
2. CONSIDERATION TO APPROVE THE JULY 6. 1992 HRA MINUTES.
Ben Smith made a motion to approve the July 6, 1992 RRA
minutes, seconded by Everette Ellison, and with no additions
or corrections the minutes were approved as written.
3. FUEL;C HEAB;4j ON THE ACOg9Saa9ON FOR FUTURE DISPOSITION &ND
REDEYELOgj4ENj 01? EAI7DS [tELATXNG ZO OUT&OT A. COUNTRY CLUB
MANOR, AND ADOPTION OF RESOLUTION THEREOF.
Chairperson Larson opened the public hearing on the
acquisition for future disposition and redevelopment of lands
relating to Outlot A, County Club Manor. The said public
hearing necessary for compliance with the Minnesota Statutory,
HRA Early Acquisition. Koropchak informed the public that the
HRA's only interest in this property is to accommodate the
City Council's request for use of the HRA's name. The
property is being acquired through tax forfeiture and the City
has been granted the right to construct an earthen berm on the
property per the Memorandum of Understanding between the HRA
and Wright County.
The following public comments and concerns were raised by
Willard and Barb Jensen, 32 Fairway Drive; Jack Nelson, 8
Center Circle; and William G. Schmidt, 27 Fairway Drive,
Monticello. The public's preference was for a single
residential development; however, Mr. O'Neill responeed that
the property is zoned R-3 (Medium Density Residential) which
Is for multi -family (apartments) dwellings and not homes. The
City's R-3 land -controls include the density, parking, tree
plantings and landscaping, off-street parking, and number of
floors (limit two-story), but does not control the income
level of dwellers. The public was informed that, currently,
no active development proposal is before the City or the HRA.
Secondly, the public was concerned about the garbage and
potential contamination associated with the berm construction.
Mr. O'Neill responsed that soil testing was completed by the
City and the material was of clean -fill and not hazardous
waste. The six foot berm w1ll serve as a freeway buffer with
completion this fall through shaping, additional black dirt,
and seeding; thereafter, will the HRA be responsible for
property maintanence (mowing).
Next, the public voiced their concern of the potential over-
use of the neighborhood park if the property were developed
Into multi -housing. Mr. O'Neill agreed that area's present
public park plan was not good and informed the public that
p*epar°_° another park could be incorporated into a future
development or an area storm drainage development proposal.
Lastly, the public expressed they were not opposed to the
acquisition of the property; however, because of privately
invested dollars into the neigborhood they supported a
development which was pleasing to the neighborhood and opposed
any development which might create a potential big eye sore.
The said public hearing comments will be submitted to the
Public Works Director and City Council.
Chairperson Larson thanked the concerned citizens and with no
further comments or questions, closed the public hearing.
With no public opposition for acquisition of the property, Ben
Smith made a motion to adopt the resolution authors zing
acquisition of outlot A, Country Club Manor, which lies within
Redevelopment Project No. 1 of the Modified Central Monticello
Redevelopment Plan. The resolution further states that the
said acquisition was through the Memorandum of Understanding
and was necessary to relieve hardship, and that the RRA
assumes the responsibility of the costs related to the
acquisition. The motion was seconded by Al Larson and with no
further discussion the motion passed unanimously. The action
was necessitated by the Memorandum of Understanding and for
compliance of Minnesota Statutory 469.027.
A second motion was made by Al Larson requesting the City
prepare an Indemnity Agreement for execution between the City
and the HRA. The agreement to release the HRA of any rights
HRA MINUTES
AUGUST 5. 1992
of revenues and of any obligations of expenses or maintanence
associated with the acquisition of the said property.
Everette Ellison seconded the motion and without further
discussion the motion passed unanimously. The agreement
Intended as a recorded accountable follow-through of the
City's request to use the HRA's name (only) for convenience,
with no obligation of associated coats. Suggestion made by
Pat Peletring.
QUBLIC HEAPING ON THE ACOUISITION AND DISPOSITION OF LANDS
(RELATING TO TIF DISTRICT NO. 1-16 AND ADOPTION OF RESOLUTION
THEREOF.
Chairperson Larson opened the public hearing on the
acquisition and disposition of lands relating to TIF District
No. 1-1/ which lie within Redevelopment Project No. 1 of the
Modified Central Monticello Redevelopment Plan. Having
satisfied statutory requirements, the district Is being
established for the Suburban Machine 6 Manufacturing
development. The development project is for the construction
of an 11,000 aq ft office/manufacturing facility located on a
3.95 acre parcel to the east of the Remmele Addition and north
of Chelsea Road. The total TIF assistance of 850,000 is for
the land write-down (829,625) and site improvements.
Koropchak pointed -out that in the future a public hearing for
the acquisition or disposition of lands will not be necessary
as the Redevelopment Contracts no longer deed the property to
the HRA via a quick -claim deed. This reduces the HRA's
recording fees and more, importantly, eliminates the HRA from
any potential environmental liabilities. Therefore, this
resolution authorizes to assist with the acquisition costa.
With no public comments, questions, or opposition, Chairperson
Larson closed the public hearing. Everette Ellison made a
motion to adopt the resolution authorizing to assist with the
acquisition coats of the described raw lands to Bradley D. and
Mary A. Barger. The motion was seconded by Ben Smith and with
no further discussion the motion passed unanimously. The
motion affirms the previous negotiated land cost assistance.
CCOONSIRIRA,'IOK TO REVIEW AND AC2EPTT,I4E P;F#L DRAFT OF TLK
PRIVAT'$ ggDgyELSPrBNT CONTRACT BETWEEN JERALD J. AND MARY E.
SCHOEN AND THE HRA.
The agenda supplement provided the HRA with highlights of the
Private Redevelopment Contract between the Schoens and the
HRA. This the final draft, Koropchak said, 'Although the
total project costs are high, she felt good about recovering
Page 3
HRA MINUTES
AUGUST 5, 1992
a portion of the BACA lose and the final agreement of a 30%
building construction completion by the 31rd of December,
1992." The tax increment assistance of $85,000 to be
disbursed at the time the building is 30% complete and other
listed conditions satisfied. The land write-down is a grant
of $70,000 and the remaining $15,000 is a loan at an 8%
Interest rate over seven years. The annual tax increment
guarantee and the letter of credit are both for an amount of
$41,500.
Al Larson made a motion to accept the negotiated terms and
conditions of the final draft of the Private Redevelopment
Contract between the HRA and Jerald J. and Mary E. Schoen as
prepared by Holmes 8 Graven. The motion was seconded by Ben
Smith and with no further discussion the motion passed
unanimously.
8. CQNSIPBftATION TO REVIEW AND IkCCEPT THE _P,itELIMINARY DRAFT OF
THE 1?RJY4T19 BED&YELOPMENT CONTRACT BETWEEN BRADLEY D. AND MARY
6. BARGER AND T4F, HRA.
Again, the agenda supplement had highlighted the terms and
conditions of the Private Redevelopment Contract between the
HRA and the Bargers. The tax increment assistance is for a
total of $50,000, land write-down of $29,625 and site
Improvements not to exceed 020,375. Land write-down disbursed
at the time the building is 30% complete and site improvement
payment upon certification of evidence. The preliminary draft
asked for an annual tax increment guarantee and letter of
credit both in the amount of $12,865. Tom Racette, Barger's
attorney, feels its unreasonable to request a letter of credit
for such a small project, as well as, an additional expense.
At this point, the only unresolved issue of the contract is
the need for the letter of credit. Plane are for the contract
to be negotiated and executed prior to the City Council's
adoption of the TIF District No. 1-16 and its Plan on August
10. Koropchak pointed -out without the letter of credit, the
HRA has no funds to draw upon in case of default; however, the
HRA Is guaranteed an annual tax increment of $12,569 for the
life of the district which is sufficient to retire the 075,000
NRA loan from the City.
Everette Ellison made a motion to accept the negotiated terms
and conditions of the preliminary draft of the Private
Redevelopment Contract between the HRA and Bradley D. and Mary
A. Barger as prepared by Holmes 8 Graven or to accept the
elimination of the letter of credit inorder to commence the
Page 4
HRA MINUTES
AUGUST 5, 1992
timely project. The motion was seconded by Ben Smith and with
no further discussion the motion passed unanimously.
The project awaits final Central Minnesota Initiative Fund and
plat approvals. Mr. St. Hilaire arrived at the HRA meeting.
7. CONSIDERATION TO REVIEW THE KNOCK -DOWN RULE RELATING TO TIF
DISTRICT NO. 1-7.
The HRA reviewed the Knock -Down Rule as it applied to TIF
District No. 1-7 for The H -Window Company. The members had no
opposition to the response letter submitted to the County
Auditor.
S. CONSIDERATION TO ACCEPT THE JULY 25. 1992 BDS, INC. BILLING.
The HRA revived and accepted the July 25, 1992 BDS, Inc.
billing.
OTHER BUSINESS.
Gary Anderson, City Building Official, informed the HRA
members that the City has filed a public nuisance notice
against the Gille property to remove vehicles, junk, and other
above -ground blighted materials within fifteen days. The city
is working with the county and has asked Commissioner Pat
Sawatske for assistance to expedite the matter. If Gills does
not respond to the notice, it is the intent of the City to
contract with Ruff's Auto for the labor -intense cleanup
portion and to assess/levy the above -ground cleanup costs
against the property. The City Mayor would like to see the
property cleaned -up; however, prior to removal of materials
city authorization must be obtained. A meeting has been set
for August 13 between city officials and the County Assistant
Attorney to determine governmental roles and liabilities. The
Building Official further reported that the city has obtained
two cost estimates for borings and laboratory tests and a
preliminary observation determined that four underground tanks
exist on the property's highway side. Also, it was reported
that 80% of the costs could be recovered by the City through
the PCA.
Mr. Anderson requested a HRA recommendation for the Mayor and
City Council. After a brief discussion, the members concluded
that the Gills property, today, has a negative value. Their
recommendation was to encourage and support the enforcement of
City's Nuisance Ordinance for above -ground cleanup of the
Dille property, to obtain the City's Attorney to represent the
Page 5
HRA MINUTES
AUGUST b, 1992
city regarding the Gills property tax forfeiture, and not to
proceed with city borings and laboratory tests until after a
redeveloper is found.
Mr. O'Neill briefed the RRA on the upcoming Farm Credi!
Auction to be held September lb, 1992, 8:00 PM, at the VFW
Club. The preliminary, site plan highlights the storm sewer
drainage routes and ponds which serve the Chelsea area.
Preliminary plans indicate the need for a 10 acre parcel to
serve as the overall drainage pond (to the east of Cty Rd 118
and south of I-94). Long range plans would connect the pord
to the Mississippi River via drainage under the freeway. The
property will be platted after the auction to allow greater
flexibility to Farm Credit and potential buyers.
10. ADJOURNMENT.
The HRA meeting adjourned at 8:88 PM.
u A... X01 - 05--
0llle Koropchak, HRA Executive Director
Page 6
T
Minnesota Association of Homes for the Aging
0
e$�dential optloo
4' for Seniors 8
in Minnesota
A guide to the continuum of care
for older Minnesotans
Prepared and Distributed by
the Minnesota Association of Homes for the Aging
i
Residential Options for Seniors in Mir.
L iCENSURE/APPLICABILI f Restaurant license if meals are Home Care License where home
provided care services such as personal can
are provided
LICENSING BODY MDH (Environmental Field MDH (Health Resources Division
Services) or local health department
POPULATION SERVED Persons age 55+
STANDARD SERVICES Building security; one daily meal
(maybe mandatory) is common.
Frail persons, primarily elderly
Building security, social/
recreational activities; 2-3 daily ,
meals; emergency call; 24-hour
staffing; transportation; housekeey
ing; service coordination; informa-
tion & referral
OPTIONAL SERVICES Social/ recreational activities; 1-3
Personal laundry; linen service;
daily meals, emergency call; 24-
case management; health screenin!
hour staffing; transportation;
medication reminders & storage:
housekeeping; service coordina-
assistance w/dressing, grooming.
Hon; Information dr referral;
bathing.
assisted living services
ACG funds (county discretion).
PHYSICAL CHARACTERISTICS Private apartments with full kitch-
Small, private apartments with
ens. Common spaces for dining,
kitchenettes. Considerable comma
social activities, etc.
space for dining, social activities,
etc. Apartments may be clustered
around shared parlor.
AvmLABLE P LIBLIC FUNDING Federal and occasionally local rent
ACG funds (county discretion).
subsidies. Some assisted living/
Some home care services may be
home careservices may be covered
covered by MA.
by Alternative Care Grant (ACG) or
Medical Auistance(MA).
nesota
Adult Foster Care (up to 4 adults,
or up to 5 adults, if all residents are
60 years or older)
DHS, with county involvement
Functionally impaired adults at
least 18 years old
Three daily meals; lodging; super-
vision/protection; household
services
Personal care; medication assis-
tance; training/assistance with liv-
ing skills; social opportunities;
transportation; assistance safe-
guarding cash; adult day care.
Private homes, usually with private
resident rooms.
Minnesota Supplemental
Assistance/General Assistance
(MSA/GA) reimbursement for
up residential housing (nego-
tiated rates). Personal care may be
covered by MA, ACG.
Lodging/Boarding License (sleep-
ing accommodations/meals for 5+
persons for periods of 1 week or
more)
MDH Environmental Field Services
Division or local health department
May not serve persons needing
facility help with incontinence,
catheter care, injectable or paren-
teral meds, wound care, dressing
changes, irrigation, etc.
Lodging/linens; 3 daily meals;
housekeeping
Lodging/ Boarding License plus
registration with MDH (will be
replaced by RCH).
MDH or local health department,
registration with MDH
Environmental Field Services
May not serve persons needing
facility help with incontinence,
catheter care, injectable or paren-
teral meds, wound care, dressing
changes, irrigation, etc.
Lodging/linens; 3 daily meals;
housekeeping
None allowed. Support services (such as assistance
with transportation, appointments,
social activities, dressing, groom-
ing, medication reminders) or
health supervision services (such as
assistance with medications, bath-
ing, taking vital signs, therapeutic
diets).
Private or shared room with bath, Private or shared room with bath.
common spaces for dining. Common spaces for dining, social
activities, etc.
MSA/GA reimbursement for MSA/GA negotiated rates. Rule 35
group residential housing (nego- and 36 facilities have special pro-
tiated rates) gram funding.
CH license is designed to replace
& L with special services; RCH
cense if 5+ beds, where adults
nceive 3 daily meals, lodging and
upportive or health-related services
4DH Health Resources Division
Ateria may beestablished when
equirements are in place.
.odging/linens; 3 daily meals;
ousekeeping; plus supportive ser -
ices (supervision, and minimal
ssistance with independent living
kill g., laundry, appointments,
hopping, etc.) and /or health -
elated services (assistance with
WLS; medication storage, remin-
lers and administration).
iocial/recreational activities are
ommon.
'rivate or shared room with bath.
:ommon spaces for dining, social
ictfvities, etc.
INSA/GA reimbursement for
group residential housing (nego.
iatc� -cites).
14 Prepared by the Minnesota Association of Homes for the Aging
Boarding care home license if pro-
vide only personal or custodial care
and related services for 5 or more
aged/infirm persons over 16 years
old
MDH Health Resources Division
Persons older than 16 who are aged
or infirm (Ml, DD, CD)
Lodging/linens; 3 daily meals;
housekeeping; custodial/personal
care, including laundry, personal
services, supervision over self-
administered meds, activities pro-
gram, supervision. If MA-certifted,
must provide nursing services.
Social/ recreational activities are
common.
Nursing home license where nurs-
ing care is provided to 5 or more
persons (excludes hospitals, clinics,
etc.)
MDH Health Resources Division
Persons older than 16 who are aged
or infirm (persons entering MA -
certified home must go through
pre -admission screening)
Lodging/linens/laundry; 3 daily
meals 6r snack and special diets;
housekeeping; nursing services,
including assistance with dressing,
grooming, bathing, toileting, eat-
ing; medication storage and admin-
istration; rehabilitative nursing;
special treatments; recreation/
social activities.
Therapy, respite, specialized care
for Alzheimers' and other special
needs, hospice.
Private or shared rooms with baths, Private or semi -private rooms with
Common spaces for dining, social baths. Common space for dining,
activities, etc social activities, etc.
MA If certified. Non -certified may MA if certified.
have MSA/GA reimbursement
(negotiated rates). May have Rule
12 funding if facility has a DHS
program license.
A more and more commonly used
term, Assisted Living is not defined by
MAHA as either a "model" or a "place."
Rather, Assisted Living is an approach to
providing a coordinated program of
needed support services to frail, elderly
persons in a residential setting. Because
Assisted Living is an approach, not a
place, it could be provided in any of the
settings described on MAHA's
"Residential Options" chart in this
publication.
As older consumers have shown a clear
preference for living as independently as
possible, Assisted Living is one way to
meet this demand. Assisted Living can
often be thought of as a partnership
between the resident and the facility —
where the resident is the decision -maker.
The Assisted Living approach will con-
tinue to emerge and grow to meet the
needs and preferences of older
Minnesotans.
so ewaat tw... ow"
APPLICATION BY GOVERNMENTAL SUBDIVISION FOR CONVEYANCE OF TAX -FORFEITED LANDS
Wdw IV o Staaer. Sano, ffi.Ot, Su6dhadon 1.
M the Matas of On APpMnon of
Monticello FHtJj_
I Oorwmrmd Subafvmoe, dor a
Oonwywiw ad OwUh Leda
Oxrtat raw Monticello Housinq B Redevelopment Authoritv
plwr M w4e+Y1w1
ad dbpn
1�t�dt�tba) incorporated government entity established under
authority oY-Minnesota *cacures.
the Monticello HRA is authorized by state statutes to acduire
property Lor ruture disposition and redevelopment purposes and hes held a
puoLIc bearing on the acquisition of'Darcel described below.
1 Taunts bdWWrthe Cow"af Wright „tw"da4arfattd
WW daarAad a 1000 a1 Id
Pajcej Ida - -
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A Taw q hw currentlT vacant land zoned R-3 (multiple family
residential) ed7eceu4. to residential subdivisions and troraerina on i -9a.
6. Tat eppder, dadtw r d6ta6t aid bad 6w Ur MOawMO Fwpawt wd eemn� b)
Promote and encourage .develooment of vacant land for resideattml oippee,_
y S^ Pf :L'L 'IlLhnv wp a_ ww.t wr...�w w,.._ •,. •i,e . rna •,.w.. ,
0 ou a an nq special aeeeeement debt. �
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MONTICELLO HRA
In Chairman
ad
Ib Executive Director
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PROJECT COSTS
CITY OF MONTICELLO
FOR
AROPLAX CORPORATION
October 14, 1992
Business Development Services, Inc.
1991 TIF Plan $ 4,700.00
1991 Packaging $ 2,705.78
1992 YTD Packaging $ 9,783.75
Legal Fees
1991 Holmes & Graven
Paul Weingarden $ 808.82
1992 Holmes & Graven $ 2,292.25
Paul Weingarden
TOTAL $20,290.60
Approximate
Central Minnesota Initiative Fund
22.37 hours $1,677.75
Economic Recovery Grant
58.13 hours $6,359.75
SBA
17.25 hours $1,293.75
Business Plan
19 houro $1,005.00
PROJECT COSTS
CITY OF MONTICELLO
FOR
SUBURBAN MACHINE & MANUFACTURING, INC.
October 14, 1992
Business Development Services, Inc.
1992 TIP Plan 8 3,850.00
1992 Packaging (CMIF) $ 3,206.25
Legal Fees
1992 Holmes & Graven 9 1,503.15
Paul Weingarden 9 3,240.00
TOTAL 811,799.40
IVA
_._ - -
Business Development Services, Inc.
November 2, 1992
Ms. 011ie Koropchak
City of Monticello
250 East Broadway
P.O. Box 1147
Monticello, MN 55362
STATEV NT
Consulting Services --September 15, 1992 through October 14, 1992
Aroplax Hours
9/15/92
LPK--Correspondence to 011ie re: Aruplax .25
9/16/92
� LPK—Follow-up with 011ie, Jerry Schoen, Bangers re:
Monticello projects .50
9/25/92
LPK--Follow-up with 011ie re: Aroplax; Follow-up with
Jerry Schoen .25
9/29/92
LPK--Aroplax Follow-up; Review TIF Agreement'l, .75
9/30/92
LPK--Aroplax .50
10/519'1
LPK—Follow-up with 011ie re: Aroplax Project .25
10/12/92
LPK--Aroplax Reception 7t Z.QQ
Total Aroplax Hours: 4.50
Suburban Machine Hours
LPK--Corresponticnce to 011ie re: Suburban Machine .25
9/17/92
LPK--Follow-up wit Jerry Sch and 011ie .50
LIs. 011ie Koropchak
Page 2
9/21/92
LPK--Suburban Machine .25
9/25/92
LPK—F9h 011ie re: Suburban Machin Follow-up ith
Jerry Schaen
Total Suburban Machete Hours: 1.25
Marketing --Not Billed
9/18/92
LPK—Ed Barcikowski, QA Thermal re: revised project and
building needs .75
9/22/92
LPK—Schedule meeting with ED Barcikowski, QA Thermal at BDS .25
9124/92
' LPK--hItzinD with F4. Barcikowski, QA Thermal 1.00
LPK--IDC Activity 17. __z
Total Marketing --Not Billed Hours: 2.25
NET CHARGEABLE HOURS: 5.75
Net Chargeable Hours Q 575/Hour 5431.25
TOTAL AMOUNT DUE 5431.21
CURREOVER 30 OVER OVER 44
f $431.25
TERMS: NET DUE UPON RECEIPT, 1.33% PER MONTH SERVICE CHARGE ON
PAST DUE ACCOUNTS
ON
Business Development Services, Inc.
September 29, 1992
Ms. 011ie Koropchak
City of Monticello
250 Fast Broadway
P.O. Box 1147
Monticello, MN 55362
STATEMENT
Consulting Services --August 15, 1992 through September 14, 1992
\
Amin Hours
8-18-92
LPK--Administrative; Aroplax Corporation .50
8.20-92
LPK--Aroplax follow-up with 011ie. Jerry, Harvey,
Dick Nadeau 1.00
8-24-92
LPK--Aroplax DTED ERG approval and follow-up
information to bank, Jerry, 011ie .75
8.25-92
LPK--Administrativc; Aroplax Corporaton
Total Aroplax Hours: 2.75
\ Suburban Machine Hours
8-17-92
LPK--Suburfian Machine; CMIF .25
8-I8-92
LPK--Administrative; Suburban Machine 1.25
8-21.92
LPK--Administrative; Suburtmn Machine .75
8-24.92
LPK--Suburbar. Machine; Finance Restructuring with
Dave Hardie, Bargers, 011ie 2.75
Ms. 011ie Koropchak
Page 2
8-25-92
LPK—Finance; Suburban Machine 1.50
8-27-92
LPK—Suburban Machine; CMIF application and follow-up 1.50
9-8-92
LPK—Suburban Machine follow-up, CMIF .75
9-14-92
LK—Follow-up with 011ie regarding Suburban Machine
approval, CMIF, QA, Dave Hardie rSQ
Total Suburban Machine Hours: 9.25
makc
9-1-92
LPK--Meeting with Ed Barcikows1d; Meeting follow-up 1.75
9-2.92
LPK--QA Thermal, Information gathering for
Ed Barcikowski
Total Marketing—Not Billed Hours: 2.50
NET CHARGEABLE HOURS: 12.00
Net Chargeable Hours 0 575/Hour 5444.94
Pau due bill for July 15, 1992 through August 14, 1992 54,087.50
TOTAL AMOUNT DUE $4,987.00
CURRENT OVER OVER 60 OVER 90
S900.00 54,087.50
TERMS: NET DUE UPON RECEIPT, 1.33% PER MONTH SERVICE CHARGE ON
PAST DUE ACCOUNTS
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roviiions- made and trana.,:t
'rovivtons to,E Chanin+ ro•:iew an,:
phone call with 0 Koroocha;+ re Lawn
schvd1�lo
08/29/94
Phone ca'l'l witn H Dun1Sa•a r: statuq
•:.s4
o+ saecution o4 agr.iomora
08 27,42
PAan.a cat: with 0 Korozchok -s
41,12:r,cution of ors:ution :apiws
rgtal 4.ar,.:e.i
u u0 '8420.00
rur o.'1 Ctihutso:nents Ad Follows
Phacccaciaa iA 30
Me+asn3ur Svr:i;oo � ;9
Poitago ) oo
I COaam Lowit, Pwsxy of tide :Sal 0t03J'+na1J�tO m .
r,� papaw, peas a dtmmw
b ,bcnnoa.wa+mropan Total Pees and Disbursements& 8443.84
as
a r
HOL MES do GRAVEN
CNw•T4tO
QO Pa4)C-or, NNOW006 11t•rmYa!
� rrP....oumas
V
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i @0i i14- nsrgiar
F'*P .ail will Services Fram
0,
Ii3ust '.. 199i Tht•uQug+.pt 31. 1=2 Ar, r.I1CW+
Oe/091a2 J80 Phuna _ 1ll a ❑r:tn Korc,pchal a;;.; T
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Pelstring rt WiCA l9sue
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Karrrpthek and Fatatl4 rs -tvt-:z3ns,
rov i gu loar, schedule
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U K"oropchatk rh net• and tntp^ayt
SII, charge
iSIV3192 JBD Phone Call W th 0 Korcochah �o -,isatus.
phone call witn T Aacotl% re
remaining iisueg, p-,)pare-sv:a:an
to contract
OBJLi'1 JED ,Make rovtf i0n's to contract 1 CO
Tota/ 5ar'WL404
>?oto Amount
125 CO 94 79
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John D Ga's, a y
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HOLMES & GRAVEN
CN.YwTFw F.D
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V�.IS
'i
I
PROJECT COSTS
CITY 08 MONT ICELLO
FOR
AROPLAX CORPORATION
JULY 16, 1992
Business Development Services, Inc.
1991 YTD TIP Plan and District
Development Contract
Certification Hee
Subtotal
Business Development Services, Inc.
1991 YTD Financial Packaging
1992 YTD Financial Packaging
Subtotal
Holmes 8 Graven
Paul Weingarden
1991 YTD Legal (Development Contract
and Preliminary GMEP
attorney review)
Subtotal
OSM
1991 YTD Topgraphy Maps
Subt otal
TOTAL PROJECT COSTS YTD
APPROVED TIP BUDGET (1991)
Admi nietration
Professional Services
$ 3,850.00
$ 800.00
P 50.00
$ 4,700.00
$ 2,705.78
4,n 8 3.R,g
9.465.90
$ 6,170.78
4'�, }0 .Y V,2.0
� goH.gg,
8 808.82
$ 69.75
$ 69.75
$11,749.35 •$ lQ� C1
$15,000.00
$10,000.00
`,,.so -A
4 , ,416'0
HRA MINUTES
AUGUST S, 1992
of revenues and of any obligations of expenses or maintenance
associated with the acquisition of the said property.
Everette Ellison seconded the motion and without further
discussion the motion passed unanimously. The agreement
Intended as a recorded accountable follow-through of the
City's request to use the HRA's name (only) for convenience,
with no obligation of associated costs. Suggestion made by
Pat Pelstring.
QUBLIC HEARING ON THE ACgUISITION AND DISPOSITION OF LANDS
RELATING TO TIF DISTRICT NO. 1-10 AND ADOPTION OF RESOLUTION
THEREOF.
Chairperson Larson opened the puo_'c hearing on the
acquisition and disposition of lands relating to TIF District
No. 1-14 which lie within Redevelopment Project No. 1 of the
Modified Central Monticello Redevelopment Plan. Having
satisfied statutory requirements, the district is being
established for the Suburban Machine & Manufacturing
development. The development project is for the construction
of an 11,000 sq ft office/manufacturing facility located on a
3.95 acre parcel to the east of the Remmele Addition and north
of Chelsea Road. The total TIF assistance of $50,000 is for
the land write-down ($29,825) and site improvements.
Koropchak pointed -out that in the future a public hearing for
the acquisition or disposition of lands will not be necessary
as the Redevelopment Contracts no longer deed the property to
the HRA via a quick -claim deed. This reduces the HRA's
recording fees and more, importantly, eliminates the HRA from
any potential environmental liabilities. Therefore, this
resolution authorizes to assist with the acquisition costs.
With no public comments, questions, or opposition, Chairperson
Larson closed the public hearing. Everette Ellison made a
motion to adopt the resolution authorizing to assist with the
acquisition costs of the described raw lands to Bradley D. and
Mary A. Barger. The motion was seconded by Ben Smith and with
no further discussion the motion passed unanimously. The
motion affirms the previous negotiated land cost assistance.
COYSIDERAaION TO St?Y19,4 AND ACCILPT THE JfIPAL DRAFT OF TYR
?RJVATJ; )tEDgyEL0?t4ZNT CONTRACT BETWEEN JERALD J. AND MARY E,
SCHOEN AND THE HRA.
The agenda supplement provided the HRA with highlights of the
Private Redevelopment Contract between the Schoens and the
HRA. This the final draft, Koropchak said, "Although the
total project costs are high, she felt good about recovering
Page 3
HRA MINUTES
AUGUST 5, 1992
a portion of the HACA lose and the final agreement of a 30%
building construction completion by the 31rd of December,
1992." The tax increment assistance of $85,000 to be
disbursed at the time the building is 30% complete and other
listed conditions satisfied. The land write-down is a grant
of $70,000 and the remaining $15,000 is a loan at an 8%
interest rate over seven years. The annual tax increment
guarantee and the letter of credit are both for an amount of
$21,500.
Al Larson made a motion to accept the negotiated terms and
conditions of the final draft of the Private Redevelopment
Contract between the HRA and Jerald J. and Mary E. Schoen as
prepared by Holmes & Graven. The motion was seconded by Ben
Smith and with no further discussion the motion passed
unanimously.
CONSIDERATI0N 10 REVIEW AND ACCEPT THE PRELIMINARY P. FT OF
THE ?gIYATE ItEDIVEL9!'MENT CONTRACT BETWEEN BRADLEY D. AND MARY
A. BARGER AND THE HRA.
Again, the agenda supplement had highlighted the terms and
conditions of the Private Redevelopment Contract between the
HRA and the Bargers. The tax increment assistance Is for a
total of $80,000, land write-down of $29,825 and site
improvements not to exceed $20,375. Land write-down disbursed
at the time the building is 30% complete and site improvement
payment upon certification of evidence. The preliminary draft
asked for an annual tax increment guarantee and letter of
credit both In the amount of $12.585. Tom Racette, Barger's
attorney, feels its unreasonable to request a letter of credit
for such a small project, as well as, an additional expense.
At this point, the only unresolved issue of the contract Is
the need for the letter of credit. Plane are for the contract
to be negotiated and executed prior to the City Council's
adoption of the TIP District No. 1-14 and Ste Plan on August
10. Koropchak pointed -out without the letter of credit, the
HRA has no funds to draw upon in case of default; however, the
HRA is guaranteed an annual tax increment of $12,565 for the
life of the district which is sufficient to retire the $75.000
HRA loan from the City.
Everette Ellison made a motion to accept the negotiated terms
and conditions of the preliminary draft of the Private
Redevelopment Contract between the HRA and Bradley D. and Mary
A. Barger as prepared by Holmes & Graven or to accept the
elimination of the letter of credit inorder to commence the
Page 4
'SEP :J K L*: 1: AFC,FL=.' 2-:V
ARTICLE III
Tax Increment Aseistance
F.:
Section 3.1. Statement of Intent. The Redeveloper has represented to the
Authority that it hasac ulred or entered Into purchase agreements for all of the
separate tracts of lead which comprise the Redevelopment Property. The
Redeveloper has fully informed the Authority of Its acquisition costa together with
the costs necessary to prepare the Redevelopment Property for redevelopment. The
Authority has further considered the other public costs of redevelopment and the
reuse value of the Property. Based upon all such Information and consideration, the
Authority determines that a land writedown of $83,000 ("Land Writedown") is the
necessary level of assistance 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 the Authority and right, title or Interest in the
Redevelopment Property.
The Land Writedown shall be paid to the Redeveloper 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 havhtQ approved
the evidence of financing required to be provided pursuant to Section 7 1;
(a) The Redeveloper having submitted and the Authority having approved
Construction Plans for the Minimum Improvements pursuant to Section 6.2;
(d) The Radsyslopsr having erscutod and delivered to the Authority the
�( Aaaessment Agreement aM Be*sis_ss-t LMsar of Go"At; and
(e) All other preconditions to payment contained in this Agreement have
takon place.
(f) The Minimum Improvements am at least 300 complots as doterminsd by
the Redeveloper's Architect.
(g) The Redeveloper has provided the Authority with a note ("Note")
acceptable to the Authority,to ropay $13,000 of tho Land Writedown at 84
interest over a term which within ono month of the Maturity Date.
Provided, however, that in no event shall tho Authority be required to pay
the Land Writedown until the data on which the Redeveloper closes and takes title to
the Redevelopment Property.
Section 3.2. I'ims Sf Peeni. If, subject to UnsvWdabls Delays, the
preconditions to payment nave not all occurred on or beforo December 31, 1992,
olther party may declare this Agreement to be null and void. Upon such declaration,
neither parry shall have any ituther liability to the other party hereunder.
mtrtr4
a»a•r
SEF ZJ tJ':•nn .,F+iFL:•�-:-FV F.c
ARTICLE IV
Construction of Minimum Improvementa and Public Improvements
Section4.1. Construction of Minimum Imrrovements. The Redeveloper agrees
that, in the event of payment of Land Writedown, it will. complete construction the
Minimum Improvements on the Redevelopment Property in accordance with the
approved Construction Plans and at all times prior to the Maturity Date will operate
and maintain, preserve and keep the Minimum Improvements or cause the Minimum
Improvemente to be maintained, preserved and kept with the appurtenances and
every part and parcel thereof, in good repair and condition.
Section 4.4. Construction Plans.
(a) As of the date of this Agreement, the Radeveloper has submitted to the
Authority and the Authority has approved Construction Plans providing for the
construction of the Minimum Improvements.
(b) If the Redeveloper desires to make any material changes in the
Construction Plane after their ayprovsl by the Authority, the Redeveloper shall
submit the proposed changes to the Authority. For purposes of this subsection, a
"material change" shall mean any change which alters the exterior appearance of the
Minimum Improvements or reduces the market value of such improvements upon
completion. If the Authority approves the proposed change, it shall notify the
Redeveloperim writing of its approval within ten (10) working days from the date of
Its receipt of the proposed cheap. If the Authority reasonably determines that
such proposed cheap is unacceptable, it shall so notify the Redeveloper In writing
within ten (10) working days from the date of its receipt of such proposed change,
together with an explanation of the basin for the rejection. If the Authority fails to
notify the Redeveloper of Its rejection of any proposed change in the Construction
Plans within said tan (10) working days from the date of its receipt of such proposed
cheap, the proposed change shall be deemed approved by the Authority.
Section 4.3. Commencement and Completion o: Construction. Subject to
Unavoidable Delays, the itadeveloper shall commence construction of the Minimum
Improvements within five (3) days after the Closing, or on such other date as the
parties shell mutually agree. Subject to Unavoidable Delays, the Red4veloper shally
complete the construction of the Minimum Improvements by,Jammewidea. Au
.09
work with respect to the Minimum Improvements to be constructed or prodided by the d8
Redeveloper on the Redevelopment Property shall be In conformity with the
Construction Plans as submitted by the Redeveloper and approved by the Authority
or as revteed pursuant to Section 4.2(b).
The Redeveloper agrees for itself, its successors and assigns, and every
succossor In interest to the Redevelopment Property, or any part thereof, that the
Rodoveloper, and such successors and assigns, shall promptly be .n and diligently
prosecute to completion the redevelopment of the Redevelopment Property through
the construction of the Minimum Improvements thereon, and that such construction
shall in any event be commenced and completed within the period specified in this
Section 4.3 of this Agreement. It is intended and agreed that such agreements and
covenants shall be covenants running with the land and that they shall, In any
event, and without regard to technical classification or designation, legal or
otherwise, and except only as otherwise specifically provided In the Agreement
itself, be , to the fullest extent permitted by law and equity, binding for the benefit
of the Authority and enforceable by the Authority against the Redeveloper and its
F.:
successors and assigns. Subsequent to conveyance of the Redevelopment Property,
or any part thereof, to the Radeveloper, and until construction of the Minimum
Improvements has been completed, the Redeveloper shall make reports, in such
detail and at such times as may reasonably be requested by the Authority, as to the
actual progress of the Redeveloper with respect to such construction.
Section 4.4. Certificate of Completion.
(a) Promptly after completion of the Minimum Improvements In accordance
with those provisions of the Agreement relating solely to the obligations of the
Redeveloper to construct the Minimum Improvements (including the dates for
beginning and completion thereof), the Authority will furnish the Redeveloper with
Certificate of Completion. Such certification by the Authority shall be a conclusive
determination of satisfaction and termination of the agreements and covenants In the
Agreement with respect to the obligations of the Redeveloper, and its successors and
assigns, to construct the Minimum Improvements and the dates for the beginning and
completion thereof. Such certification and such determination shall not constitute
evidence of compliance with or satisfaction of any obligation of the Redeveloper to
any Holder of s Mortgage, or any insurer of a Mortgage, securing money loaned to
finance the Minimum Improvements, or any part thereof.
(b) The Certificate of Completion provided for in this Section 4.4 of this
Agreement shall be in such form as will enable it to be recorded in the proper office
for the recordation of deeds and other instruments pertaining to the Redevelopment
Property. If the Authority shall refuse or fail to provide the Certificate of
Completion in accordance with the provisions of this Section 4.4 of this Agreement,
the Authority shall, within ten (10) days after written request by the Re eve4er,
provide the Redeveloper with a written statement, indicating in adequate detail in
what respects the Redeveloper has failed to complete the Minimum Improvements in
accordance with the provisions of the Agreement, or is otherwise in default, and
what measures or acts it will be necessary, In the resemble opinion of the
Authority, for the Redeveloper to take or perform to order to obtain such
certification.
(o) The construction of the Minimum Improvements shall be deemed to be
completed when the Redeveloper has received a final certificate of occupancy by the
City.
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ARTICLE V
Insurance and Condemnation
Section 9.1. Insurance.
(a) The Redeveloper will provide and maintain at all times during the
process of constructing the Wnimum Improvements and, from time to time at the
request of the Authority, furnish the Authority with proof of payment of premiums
on:
(i) Builder's risk insurance, written on the so-called "Builder's Risk
-- Completed Value Basis," in an amount equal to one hundred percent (1009)
of the Insurable value of the Minimum Improvements at the date of completion,
and with coverage available in nonreporting form on the so-called "all risk"
form of policy. The Interest of the Authority shall be protected in accordance
with a clause in form and content satisfactory to the Authority;
(ti) Comprehensive general liability insurance (including operations,
contingent liability, operations of subcontractors, completed operations and
contractual liability Insurance) together with an Owner's Contractor's Policy
with limits against bodily injury and property damage of not Ins than
$1,000,000 for each occurrence (to accomplish the above -required limits, an
umbrella excess liability policy may be used); and
Oil) Workers' compensation insurance, with statutory coverage.
The policies of Insurance required pursuant to clauses (t) and (li) above shall be in
form and content satisfactory to the Authority and shall be placed with financially
sound and reputable insurers licensed to transact business in the State. The policy
of insurance delivered pursuant to clause (I) above shall contain an egreement of the
insurer to give not lose than thirty (90) days' advance written notice to the
Authority in the event of cancellation of such policy or change affecting the coverage
thereunder.
(b) Upon completion of construction of the Minimum Improvements and prior
to the Maturity Date, the Redeveloper shall maintain, or cause to be maintained, at
its cost and expense, and from time to time at the request of the Authority shell
furnish proof of the payment of premiums on, insurance as follows:
(I) Insurance against loss and/or damage to the Minimum
Improvements under a policy or policies covering such risks as ars ordinarily
insured against by similar businesses, including (without limiting the
generality of the foregoing) fire, extended coverage, vandalism and malicious
mischief, boiler explosion, water damage, demolition cost, debris removal,
collapse and flood in an amount not lose than the full insurable replacement
value of the Minimum Improvements, but any such policy may have a
deductible amount of not mora than 119,000. No policy of insurance shall be so
written that the proceeds thereof will produce less than the minimum coverage
required by the preceding sentence, by reason of cc -insurance provisions or
otherwise, without the prior consent thereto in writing by the Authority. The
term "full insurable replacement value" shall mean the actual replacement cost
of the Minimum Improvements (excluding foundation and excavation coats and
costs of underground flues, pipes, drains and other uninsurable items) and
equipment, .. :.....i,.....,• �,
amuse
�s�u•t 12
P,'
Creetuentlythan
All policies evidencing insurance required by
this subparagraph (I) with respect to the Minimum Improvements shall be
carried in the names of the Redevelo er and the Authority as their respective
Interests tnayappear
n��aAa of In , nnw •�N..,. C t..'.. -- �s /. ,J�
lav_:._ r.,, ., < , , 1 - _� 1 Isy..l.r . OEi;965yf...�1
deme v^ d whwna}+.-,b:L A .,7 -&ad
te`the•A+rihoa{i!t. ?' .1_2.•,.l.y ,...1 waw P.cn.o � �.,,r.. .,:S...z jE�..l, :.s.aa ....
(ti) Comprehensive general public liability insurance, including
ppersonal injury liability (with employee exclusion deleted), and automobile
insurance, including owned, non -owned and hired automobiles, against
liability for injuries to persons and/or property, in the minimum amount for
each occurrence and for each year of $1,000,000 , for public liability aed•eball
lk 1iw- ,l... _ W ...l.. _1.. ,X �L..i:J �C=AM :_l .. - _1.
(iii) Such other insurance, including workers'compensetion insurance
respecting all employees of the Redeveloper, in such amount as is customarily
carried by like organizations engaged in like activities of comparable sire and
liability exposure; provided that the Redeveloper may be self-insured with
respect to all or any part of Its liabiilty for workers' compensation.
( c ) Ail insurance required in Article V of this Agreement shall be taken out
and maintained in responaible insurance companies selected by the Redeveloper
which are authorised under the laws of the State to assume the risks covered
thareby. T'l., f, i, ..le city pogeiae
n_4A,....1.. a. al trarwa n. hindwra ^t &he
otherwise provided in this Article V of this Agreement each policy shall contain a
provision that the insurer shell not canq l nor modify Its coverage without giving
written notice to the Redeveloper and the Authority at least thirty (30) days before
the cancellation or modification becomes effective. Piet issa•sbee-EI. •-
1{. In lieu o separate
policies, the Redeveloper anyai
mntains Anglo policeyy, blanket or umbrella pollelee,
or a combination thereof, having the covero required herein,
_ , . 1:. f. ties-�}loJmum
L�, d .
(d) The Redovoloper a . ees to rotffy the Authority immediately In the caso
of damage to, or destruction of, the Mirlmum Improvements or on7 portion thereof
resulting from firs or other casualty. In such evont, the Redeveloper will either:
(1) subject to Unavoidable Delays, commence within sixty (60) days to repair.
reconstruct and restore the %nimum improvements to substantially tris same or an
improved condition or value as it existed prior to the event causing such damage
and, to the extent necessary to accomplish such repair, reconstruction and
$10 restoration, the Redeveloper will ayypiy the ibt proceeds of any Insurance relatiag
to such damage received by the Rodeveloper to the payment or reimbursement of the
situ.
asn�t
SEP 24 '?c Cr -:V W.OPLAX/eSV
P.8
coats thereof; or (ii) within such 60 day period make Fail Repayment of the"Iand
Writedown assistance (�11 }tq d�lo� pl ttJa1 ea�aivJtes rpt / 99d o�er�e9A/E
'I ..:..F... r rr wU �i"moi . •+4.
Section S.I. Subotdination. Notwithstanding anything to the contrary
contained in this Agree nt, iae Authority's rights with respect to the receipt and
application of Net Proceeds shall be subject and subordinate to the rights of way
fender providing financing for the construction of the MiWm= Improvements as
permitted under Article VU of this Agreement.
August 13, 1992
Ms. 011ie Koropchah
Housing and Redevelopment Authority
City of Monticello
P.O. Box 93A
Monticello, MN 55362
4 17. 013TOia
Business Development Services, Inc.
Esiablishmeni of TIF District N6. -I-.14- (Suburban Machine)
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 presentation to Planning Commission/City Council;
and certification of district.
TOTAL AMOUNT DUE
CURRENT OVER 30 OVER 60 QVF-R
$3,850.00
TERMS: NET DUE UPON RECEIPT, 1.33% PER MOWM SERVICE CHARGE ON
PAST DUE ACCOUNTS
August 28, 1992
Ms. 011ie Koropchak
City of Monticello
250 Fast Broadway
P.O. Box 1147
Monticello, MN 55362
STATEMENT
Business Development Services, irtc.
Consulting Services—July 15, 1992 through August 14, 1992
Aronlax Hours
7/15/92
LPK—Review projections to include bank and SBA changes,
and also effect of market rate of CF; Submit additional
information to OMNI
2.25
7/16/92
LPK--Aroplax ERG
1.75
7/17/92
LPK--Aroplax ERG Application
2.50
LPK--Follow-up with 011ie
.25
7/20/92
LPK--Aroplax ERG
.50
7/21/92
LPK--Aroplax ERG, Information to Harvey Batter re: SHA 504
1.25
7/22/92
LPK--Aroplax Corporation
2.75
7/23/92
LPK--Aroplax ERG
1.75
7/27/92
LPK--Aroplax ERG; Public Hearing; Follow-up re: CMIF Denial
5.25
7/29/92
LPK--Aroplax ERG; Follow-up
2.75
7/30/92
LPK—Amplax ERG; Finalize package
1.00
7/31/92
LPK—Follow-up with 011ie and Jerry; Deliver package to DTED;
Package to 011ie and Jerry
2.25
Ms. 011ie Koropchak
Page 2
8/4/92
LPK--Aroplax ERG Follow-up information, Follow-up with 011ie 1.25
8/7/92
LPK—Revise/update ERG information to Harvey Becker, Jerry
Schoen, 011ie Koropchak, and Carol Pressley -Olson 1.50
8/10/92
LPK—Aroplax ERG; Update information 1.50
8/11/92
LPK—Aroplax ERG; Update; Deliver information to DTED 3.25
LPK—Paul Weingarten re: Monticello projects .50
8/12/92
LPK—ERG information for Aroplax; Equipment list to Carol
Pressley -Olson with cost break -down; Info to Jerry 1.�4(
Total Aroplax Hours: 2%4 C 1b.1 S 33.25
Suburban Machine Hours
7/15/92
LPK—Resolution and CMIF activity; Follow-up information
to Dave Hardie
1.00
7/16/92
LPK--CMIF Application for Suburban Machine
1.50
7/20/92
LPK--Suburban Machine CMIF Application
1.00
7/21/92
LPK--Suburban Machine CMIF Application
1.75
7/22, d2
LPK»Suburban Machine CMIF Application
1.50
7/23/92
LPK--Suburban Machine CMIF Application
1.00
7/24/72
LPK--Suburban Machine
2.25
7/29/92
LPK--Suburban Machine CMIF Application
1.75
7/30/92
LPK--Suburban CMIF; Visit plant and pick up information
1.50
7/31/92
LPK--Complete CMIF Application and related activity
2.00
8/6/92
LPK--CMIF and Follow-up for Suburban Machine
1.50
Ms. 011ie Kompchak
Page 3
8/10/92
LPK—Suburban CM1F Follow-up; Update information, etc. 1.25
8/11/92
LPK—Suburban Machine; Follow-up with 011ie and Gary Travema 1.25
8/12/92
LPK—Follow-up activity for Suburban Machine 1.25
8/14/92
LPK—Suburban Machine �ZI
Total Suburban Machine Hours: 21.25
is 9�.1g
Marketing—Not Billed
7/15/92
LPK—Meeting at WCSB; Follow-up for QA Thermal
3.25
7/16/92
LPK--QA ThernW
1.00
7/17/92
LAK --QA Thermal
.75
7/20/92
LPK--QA Them al
.75
7/23/92
LAK --QA Thermal
Total Marketing Hours:
6.50
NET CHARGEABLE HOURS: 54.50
Net Chargeable Hours ® 575/Hour 54.087.50
TOTAL AMOUNT DUE: $4,087.50
CURREOVER 30 OVER OVER90
$4,087.50
TERMS: NET DUE UPON RECEIPT, 1.33% PER MONTH SERVICE CHARGE ON
PAST DUE ACCOUNTS
HOLMES & CRAVEN
CHARTERED
R/ n/.s,., C-. Ilfr. p,%� %4- AME
T. . sit/337-8300
- ta-
i' Z= Yore. On 1:
MC'Ic Or f:. .
contracl.
.� .r/rdl/'S/ Al .. ..y:
Motsang►• 5+r }'t• '.: 'i
,r• •1 t" .
1 da:ars adm prnft allow
M rvc &To, r/, fu- a lW."
• f wM car wd ro yEn
•fin un M f.aimaA
HOLMES & GRAVEN
CHASTENED
Tde0 Ws/=-sm
• i(
Yom: U44
[ 83.
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HOLMES &GRAVEN
Mater;• .t••�r
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—'--------------_______
Services
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---------------------------------
Matter
—'--------------_______
Services
Disbs.
Total
2 Schoen Redevelopment Contract
1,652.50
95.75
1,748.25
---------------
Totals for client 14N195:2
$1,652.50
$95.75
.
$1,748.25
I r• ti, urtlr trtiM el �
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I
250 East Broadway
P. O. Box 1147
Monticello, MN
55362.9245
Phone: (612) 295-2711
Metro: (612) 333.5739
Fax: (612) 295.4404
TO: NRA Members, Rick Wolfeteller, and Jeff O'Neill
FROM: 011ie Horopchak, NRA Executive Director OPy
DATE: August 31, 1992
SUBJECT: September HRA Meeting
The regular scheduled NRA meeting of Wednesday, September 2, 1992,
has been cancelled due to the lack of agenda action items.
However, enclosed is a copy of the August NRA minutes and City
Council agendas and minutes regarding the Gillis property. These
to serve as an update. If you have any Questions regarding the
-enclosures, please call Mr. Wolfeteller or myself at 295-2711.
Have a Safe and ()rest Gabor Day Weekendl
City Council Agenda - 8/10/92
15. Consideration of authorizing soil investigation of Gille
property. (R.W.)
A. REFERENCE AND BACKGROUND:
As part of our blight ordinance enforcement, the City has
notified the former Gills Auto Sales property on west Broadway
of blighted conditions and requested the property be cleaned
up. Gills Auto Sales is now relocated to the Clearwater area,
and the property has become delinquent in taxes and the county
is proceeding under the tax forfeiture proceedings on this
parcel.
Technically, this property under tax forfeiture is either in
the State of Minnesota's or Wright County's hands as the
county intends to put the property up for sale as the
redemption period has passed. In discussing the condition of
the property with Wright County Assistant Attorney, Brian
Asleson, the county attorney's office has given the City
permission to eventually have all debris removed from the
property and assess the cost of the removal to the property as
a special assessment if Mr. Gills does not remove the items.
At the request of the mayor, Gary Anderson has also obtained
quotations from firms to conduct soil tests of the property to
determine to what extent the area may be contaminated and to,
hopefully, determine the number of underground fuel tanks,
etc. Copies of these quotations are attached and range from
$7,845 to $8,710. While the City is not the owner, the
quotations were obtained for the purpose of getting a cost
estimate as, sooner or later, some one or some agency will
probably have to do this analysis if the property is ever
going to be redeveloped.
The real question at this time is who is the responsible
party, the State? Wright County? the City of Monticello? or
Fred Gills? while I think we all agree that the property
should be redeveloped, the HRA has taken the position that
possibly Wright County or someone else should be responsible
for determining the extent of any pollution or contamination
as they are the party selling the property. I think it's good
that the City is taking the initiative to start the process;
I am only concerned about whether it's our responsibility to
incur these costs and if we do, do we have the ability to
place a lien on the property for our expenditures?
Assistant County Attorney, Brian Asleson, is reviewing the
legality of the City being able to recapture our costs through
a lien on the property and may have information for me prior
to Monday night's meeting. Since it doesn't appear that other
agencies or Individuals are doing anything to determine the
City Council Agenda - 8/10/92 J
extent of contamination, it may a good idea for the City to
get involved if we are assured that we can assess the property
for our costa incurred. It is my understanding that County
Commissioner Pat Sawatzke along with Brian Asleson from the
attorney's office and city staff would like to meet Thursday,
August 13, to review the site and, hopefully, come to an
agreement on how to proceed. At this point, I wanted to make
the Council aware of the quotations we have received from
environmental consultants to do the soil investigations and,
if it is determined that we have a method of recapturing our
costs, to authorize the expenditure by the City. Without a
determination of the possible extent of contamination, I don't
believe any individual or government agency will be willing to
stick their neck out and purchase this property. If we ever
hope to see this property redeveloped and cleaned up, we may
have to take the initiative.
B. ALTERNATIVE ACTIONS:
1. Authorize expending funds to do soil borings on the
former Gills Auto site contingent upon receiving an
opinion from the assistant county attorney on our ability
to recapture the funds through an assessment process.
2. Do not authorize soil borings to be conducted and leave
that up to the county or future owner.
C. STAFF RECOMMENDATION:
Since this property has been a blighted condition for a long
time and it doesn't appear that any other individual or agency
is taking the initiative to do anything, staff supports the
soil investigation work if we have a way of attaching a lien
to the property in the future. While we may not know this
answer Monday night, the meeting on Thursday with the county
commissioner and assistant attorney may provide more input on
how we can proceed.
D. SUPPORTING DATAt
Copy of soil investigation quotations.
Council Minutes - 8/10/92
annexation, sewer hookup fees, and trunk charge fees, and
review the current policy for providing garbage pickup service
as it relates to mobile home parks.
Kirk Kjellberg was present to express his view that Kjellbergs
Mobile Home Park provides many of the services to its
residents that would otherwise be provided by the City. He
noted that the mobile home park provides its own street
maintenance and internal sewer and water systems. It was
Kjellberg'a view that the mobile home park should be entitled
t:o the same services such as garbage pickup that other mobile
home parks in the city enjoy.
After discussion, it was the consensus of the Council to
maintain the ex fisting policies associated with connecting new
developments to City of Monticello services and that
annexation would be acceptable with the requirement that the
mobile home park be hooked up prior to annexation and that all
fees associated with providing services to the mobile home
park remain consistent with present city policies.
No action was taken with regard to the current city policies D
relating to garbage pickup.
15. Consideration of authoririnol soil investigation of Gills
property.
City staff informed Council that quotes have been received on
the cost to investigate soil pollution problems at the Gille
property. In addition, surface cleanup of public nuisance
items on the si. to can occur at any time, as al l proper notices
have been tiled. Cleanup of the site will cost approximately
$8,000. Staff informed Council that it was their
understanding that it appears that the cost to clean up the
site can be levied against the property as a special
assessment; therefore, when the property is finally sold to a
developer, the City may likely be able to recover the cost of
the cleanup.
After discussi an, a motion was made by Brad Fyle and seconded
by Ken Maus to authorize City staff to enforce the public
nuisance ordinance through removal and cleanup of debris at
the Gills property. Voting in favor of the motion: Brad
Pylo, Ken Maus. Opposed: Shirley Anderson, Dan Blonigen,
Clint Herbst.
It was the majority opinion that cleanup could be delayed
until after a method for recovering cleanup cost is completely
secured.
Page 9
Council Minutes - 8/10/92
16. Consideration of City Assessor applicants.
Administrator Wolfsteller informed Council that six
individuals had applied for the City Assessor position and
that four appeared qualified.
Council consensus was to have the Administrator conduct
interviews, check references, and provide Council with a
recommendation for the nest meeting.
There being no further business, the meeting was adjourned.
Jeff O'Neill
Assistant Administrator
Page 10
n
e
1
,)
Council Agenda - 8/24/92
Consideration of approving sale of tax forfeited land parcels
by County Auditor. (R.W. )
REFERENCE AND BACKGROUND:
The Wright County Auditor's Office is preparing for an
upcoming public auction sale of tax forfeited parcels for non-
payment of property taxes . The tax forfeited parcels proposed
for sale in the near future are for those that have not paid
property taxes between the years 1976 to 1982 . Four parcels
are located within the city of Monticello; and prior to the
sale, the County is asking for our approval to proceed with
public auction on these parcels.
One of the parcels included in the sale notice IS Outlot A of
Country Club Manor, which has outstanding unpaid special
assessments with penalties and interest over $554,000. As you
may recall , the City had previously requested from the County
Board of Commissioners that this property be conveyed to the
Monticello HRA in lieu of the special assessments so that we
could control and encourage development of the property. In
addition, we were able to start creating a freeway berm along
this property from the material removed at the maintenance
building site. The City has a memorandum of understanding
between the County and the HRA that we can obtain this parcel
by paying the outstanding real estate taxes totaling
14,327.26. The County Auditor is now asking that we
officially adopt a resolution requesting that this parcel be
removed from public auction and conveyed to the municipality
for public use.
Two additional parcels up for public sale will be the former
Gille Auto Sales site. Because this property is in a blighted
condition and has been used as a storage site for auto parts,
along with the possibility of unknown contamination of soils
due to underground tanks and the type of business that has
been operated on the property, I believe the City is
Interested in seeing this property cleaned up and redeveloped.
I have recently met with the County Board to request that this
parcel also be removed from public sale for a period of one
year and noted that the City of Monticello or its Housing and
Redevelopment Authority has interest in possibly acquiring the
property privately. Because of the potential for soil
contamination exists, there are a number of legal
technicalities we are checking Into with our City Attorney
before we are proceeding with any acquisition attempt. The
resolution being considered by the Council tonight merely
requests that this property be taken off of the public auction
and be made available for City acquisition for a period of one
year. This does not commit the City or the HRA to purchase
the property, only that it gives us additional time to make
Council Agenda - 8/24/92
sure that we would not be inheriting any type of liability for
contamination and to further research the potential cost of
cleanup of the property.
The County has also requested verification of the outstanding
special assessments remaining unpaid against the four parcels.
I have reviewed the figures provided by the Auditor's office
and agree with their calculations.
The resolution further states that there will be additional
assessments that we anticipate levying against three of the
parcels for blight and weed removal costs incurred by the
City. This would notify any potential buyer that additional
assessments will be placed against the property taxes if the
sale proceeds are not sufficient to cover the taxes and
special assessments.
B. ALTERNATIVE ACTIONS:
1. Adopt a resolution requesting that Outlot A of Country
Club Manor and the Gille Auto Sales property be removed
from public sale, request conveyance of the Outlot A
parcel to the Monticello HRA at a cost of $4,327.26,
approve the tax forfeiture sale of the remaining two
parcels by the County, certify that the unpaid special
assessments are correct and would be re -assessed to the
property if the sale proceeds are not sufficient to cover
the special assessments, and certify that additional
assessments will be certified in 1992 for removal of
blight and weeds as indicated in the resolution.
C. STAFF RECOMMENDATION:
It is recommended that tho resolution be adopted as proposed.
We have previously requested authorization to purchase
Outlot A of Country Club Manor, and the request to eliminate
the Gills property from the sale proceedings for one year
would allow the City and/or the HRA additional time to
investigato the site and the legalities of potential purchase
for redevelopment. It is also recommended that for the
remaining two parcels being proposed for sale that the City
indicate any unpaid special assessments would be re -assessed
to the property if the sale proceeds are not sufficient to
cover our assessments.
SUPPORTING DATA:
Listing of parcels proposed for sale; Outline of information
requested by County Auditor; Resolution for adoption.
Darla M. Grosheas August 10. 1992
WRIGHT CX= T ADDIZ'0B/TREASQB@
10 R.W. 2nd Street
Buffalo MR 55313
Bequest •for Approval for Sala of Tax Forfeited Land Parcelss
Enclosed is a classification list of non -conservation property located in your
municipality. The described parcels forfeited to the State of Minnesota for
non-payment of property taxes. The parcels on this list were included on
Non -Conservation Classification List approved by the Board of Wright County
Commissioners on July 28, 1992 by Basolution 192-.S4.
As provided in Minnesota Statutes 282, we request that you:
1. Approve the parcal(s) for public auction, or
2. Bequest a conveys=* to your municipality for public use without monetary
consideration. We also require that the form "Application by a Governmental
Subdivision for Conveyance of Tar Forfeited Land" be completed and returned
to our office with a copy of the City Comcil Basolution requesting
conveyance, or
3. If acquisition of a parcel by a governmental subdivision is anticipated.
than you may also make a written request that certain parcels be withheld
from public auction for one year.
Please provide City Council Certification, mbich addresses both types of special
assessments listed balowt
1. Attached is a list shoving the balance of any unpaid canceled special
assessments at the ties of forfeiture and that may be reassessed. Please
certify that these are the correct amounts. If there is a discrepancy.
please contact our office. It would also be helpful, when selling the
property. if you could tall us. at this tiaa, how long any reassessmeat
vould run and at what interest rate it mould be computed.
We apply approximately 902 of the sale price touards paying off the special
assessments.
2. Any new specials "sassed during 1992 for first year payable in 1993.
We used both the sale approval and special assssamant information included in
the City Council Resolution.
Although stats lav deems the sale automatically approved if the City Council
fails to respond within ninety (90) days of this notice, we ask that you do
respond.
If you have any questions. please call our office at 682-7579.
6
Monticello city Special Assessments Before 2a: Forfeited lid Sale
Parcel I.D. No.
Pro ect
Am=t
155-014-003080
784& (76 S6i: 1mp.)
; 7,348.16
90611 (Del. loving)
94.50
91611 (Del. Services)
36.68
90411 (89-02 Impr.)
577.76
8,057.10
155-014-003100
784& (76 S6H Imp.)
; 7,348.16
90611 (Del. loving)
94.50
91611 (Del. Services)
36.68
90411 (89-02 IVY.)
577.76
8,057.10
155-033-000010
1978-1 Impr.
;280,228.28
Fwm NM MOA — lana CL&lmn Wxwwretlon - NorrCamanaa°") Page 1 of 2 POJ&& r. MAIL
I� CERTIFICATE OF COUNTY BOARD OF CLASSIFICATION OF FORFEITED
LANDS AS PROVIDED BY CHAPTER 386, LAWS 1935 AS AMENDED.
Tothe (town • City) Board atow Citv of Monticello
We. the members of the County Board of the Costly of Wright MhnesoM
do hereby ear* that the parcels of WW hwekW er Owed are d of 1lte lands whfeh have been dassSW by us
as servation lands, ham the Bat of lands bort'eited to the Stade of hawmota for nonpayment of taxes for the
year or years 1976 - 1982 as Wovkjad by %Gnnasofa Stabrtes 1943, Section 28201 as amended.
? N
SecT&uor pMe �o°�° val'n daoor ver»
Bkxk
I. 11Z w} M
1155-014-003080
Lot 8, Block 3. 80GLOND ADDITION.
/155-014-003100
Lot 10. Block 3, HMUND ADDITION.
/ 155-033-000010
Outlot A. COUNM CLUB HAl'108.
0155-500-033400
A tr of land in lot B of Si of Sae.
detect Beg at pt of intare of S line of
Tr Bvy 152 6 N line of ad Lot B; th
Silly alg S line of Hwy, 315 ft. for
POB of tr to be dose; th cont SEly a1g
S line of Hvy 283 ft; th def 90
degrees 260.5 ft. to N line of GH E/W;
th NYly alg ad R/W line 281.6 ft; th N
par to E Line of Tr 205.1 ft. to POB.
See. 3. Twp. 121, Rge. 25.
/ 155-500-033402
Pre of SWI of SEI 6 SEI of SWI dose:
Com at NE cor of SEI of SWI; th V
366.1 ft. to pt on S r/v of Hwy 1152;
eh SE 598 ft, for POB; th cont SE 40
ft; th SW 90 degrees B 258.47 ft. to N
r/w of B8; th NN 40.16 ft; th NE
260.50 ft. to POB, See. 3. Twp. 121.
Ego. 23.
(continued)
f
v
8 3
10 3
112.000 00
112,000 00
Outlot A f 4.328 00
3 121 25 150.000 00
3 121 25 1 3.500 00
0
I
11
Monticello City
:Odor No. 44as— Lrw C+autloMm(CanwrraYm- ) page 2 of 2
1155-300-142302
Part of S1/2 of NWI/4 of Sec. 14, Twp. 14 121 25 113,200 00
121, Rge. 25, dose. as fall: Comm at
NE car of ad SI/2; th alg N line of ad
SI/2 on assumed brg of S 89 deg. 08
min. 38 sec. W, a dist. of 1056 ft.
(64 rods); th S 00 deg. 07 min. 17
sec. W par v E line of ad $I/2 dist.
of 924 ft. (56 rods) th S 89 deg. 08
min. 38 see. W par to N line of ad
SI/2, dist. of 319.14 ft. to act POB;
tb cont S 89 deg. 08 min. 38 see. W. a
dist. of 512.47 ft. to the ctr line of
Old MN 8vy. No. 25; tb B 27 deg. 42
min. 10 sac. E alg sd ctrlins dist. of
366.16 ft.; th M 89 dog. 8 min. 38
sec. E par to W Line of ad SI/2. dist.
of 333.83 ft.; th S 00 deg. 9 ain. 7
set. W. 339.23 ft. to POB; cont. 3.29
acres. mol, subject to pub road
easements. Section 14. Township 121.
Range 25.
The foregoing classification is hereby a "covet.
Dated. . 19,,,
By the Board/Council of the of
.i
1
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
1554,494.73 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 HRA agree
as followsl
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 HRA.
4. That the outstanding real estate taxes, without penalties
and interest, totaling 14,327.26, 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.
6. That the construction of said berm may be undertaken prior
to the actual conveyance to the Monticello BRA.
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 _9, 1992.
Dated: Jam 1992.
COUNTY Of
WRIGHT
By M
Wes Wittkowski chairperson
Wright County Hoard
8Y~—
Rie rd W. No
County Coordinat
MONTICELLO HOUSING AND
REDEVELOPMENT AUTHORITY
Sy
Al L on Chairperson
Moa ^�,�, e l l`o BRA
By//�'tes `'C"tcQ 's'
011ie Roropchak
Executive Secretary
Monticello ERA
RESOLUTION 92 -
SALE OF TAX FORFEITED LAND PARCELS
WHEREAS, parcels of land in the city of Monticello bearing tax ID
numbers 155-500-033400, 155-500-033402, 155-033-000010, 155-014-
003100, and 155-014-003080 have been forfeited to the State of
Minnesota for non-payment of property taxes and are being prepared
for public sale under tax forfeit land sale procedures of Minnesota
Statutes, Chapter 282, and
WHEREAS, the City of Monticello or its Housing and Redevelopment
Authority has an interest in acquiring Parcel #155-500-033400 and
155-500-033402 for the purpose of redevelopment of a non -conforming
and blighted area, and
WHEREAS, parcel #155-033-000010 (Outlot A, Country Club Manor) has
outstanding special assessments with penalty and interest totaling
$554,494.73, and it is unlikely that a private developer would
acquire this property because of the magnitude of the assessments
owed, and
WHEREAS, the City of Monticello HAA has interest 'in acquiring
parcel #155-033-000010 (Outlot A, Country Club Manor) for
residential development purposes.
NOW, THEREFORE, 8E IT RESOLVED:
1. The City of Monticello and its RRA requests that parcel #155-
033-000010, 155-500-033400, and 155-500-033402 be withheld
from public auction for one year.
2. That parcel #155-033-000010 (Cutlot A, Country Club Manor) be
conveyed to the Monticello MRA for public purposes in
accordance with the conditions established in a memorandum of
understanding dated June 9, 1992, between the County of Wright
and the Monticello MRA.
3. That the City of Monticello approves of the sale of tax
forfeited parcels #155-014-003080 and 155-014-003100 by public
auction.
4. That the City of Monticello certifies that the unpaid special
assessments owing against tax forfeited parcels listed below
are correct and any remaining amounts remaining unpaid as a
result of public sale shall be re -assessed for a period of 5
years at 81 interest.
Parcel #155-014-003080 # 8,057.10
Parcel #155-014-003100 $ 8,057.10
Parcel #155-033-000010 $280,228.28
Resolution 92 -
Page 2
That, as of the date of this resolution, the following tax
forfeited parcels will be subject to additional special
assessments for 1992 with first year payable 1993 for blight
and weed removal costs.
Parcel 6155-014-003100 $ 543.23
Parcel 6155-014-003080 $ 543.25
Parcel 6155-500-033400 = 660.51
Adopted this 24th day of August, 1992.
Mayor
City Administrator
Lam.