HRA Agenda 05-01-1996AGENDA
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday. May I, 1996 - 7:00 p.m.
City Hall
L MEMBERS: Chairperson Al Larson, Vice Chairperson Brad Barger, Everette Ellison. Tom
St. Hilaire, and Roger Carlson.
STAFF: Rick Wolfsteller, Jeff O'Neill, and 011ie Koropchak.
GUEST: John Komerak. Developer
Attorney Steve Bubul, Kennedy & Graven
Mark Ruff, Publicorp
Bill Endres, Marquette Bank
I. CALL TO ORDER.
2. CONSIDERATION TO APPROVE THE APRIL 3 AND APRIL 11, 1996 HRA
MINUTES.
3. CONSIDERATION TO REVIEW THE REVISED TIF SURPLUS PROJECTIONS
AND RECOMMENDATIONS FOR APPROVAL.
4. CONSIDERATION TO REVIEW THE REVISED ANALYSIS AND
RECOMMENDATIONS FOR THE PRAIRIE WEST PLUS REDEVELOPMENT
PROJECT FOR AUTHORIZATION TO ENTER INTO A PRE -DEVELOPMENT
AGREEMENT.
S. CONSIDERATION TO REVIEW THE 141X1 WEST BROADWAY APPRAISAL
AND PURCHASE AGREEMENT FOR CONSIDERATION TO ACQUIRE.
6. CONSIDERATION OF AN INFORMATIONAL. ITEM RELATING TO THE
PROCESS FOR ESTABLISHMENT OF THE STORM SEWER CHARGE AND
THE PROCESS USED TO INFORM DEVELOPERS.
7. CONSIDERATION OF COUNCIL. REQUEST TO ENFORCE TH1.
DEVELOPMENT CONTRACT BETWEEN THE HRA AND
MFTCALF/LARSON.
X. CONSIDERATION TO ACCEPT A I.E`fTFR OF RESIGNATION FROM
COMMISSIONER EVEREITE ELLISON AND AUTHORIZATION TO
ADVERTISE FOR A REPI.ACEMF.NT.
9. CONSIDERATION OF AN UPDATE RELATING TO THE HRA OFFER ON
THE III WEST BROADWAY PROPERTY.
10. CONSIDERATION TO AUTHORIZE EXECUTION OF THE LOAN
AGREEMENT BETWEEN THE HRA AND MCP.
11. OTHER BUSINESS.
a) Approval of monthly bills.
12. ADJOURNMENT.
MINUTES
\ MON710ELLO HOUSING AND REDEVELOPMENT AUTHORITY
SPECIAL MEETING
Thursday, April 11, 1996 - 5:00 p.m.
City Hall
MEMBERS PRESENT: Chairperson Al Larson, Vice Chairperson Brad Barger, Tom St.
Hilaire, and Roger Carlson.
MEMBER ABSENT: Everette Ellison.
STAFF PRESENT: 011ie Koropchak.
STAFF ABSENT: Rick Wolfsteller and Jeff O'Neill.
Chairperson Larson called the HRA meeting to order at 5:15 p.m.
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Chairperson Larson informed the HRA members that Bob Bowen, Jeff O'Neill, and
he met with Michael Schroeder of Hoisington Koegler on April 5, 1996. An attempt
was made to negotiate and reduce the consulting fee (not -to -exceed $90.650)because
of the MCP Subcommittees participation; however, Hoisington felt the involvement
of others was no savings of time to Hoisington. Payments are due in phases and by
tasks.
The draft copy of the contract and attached scope of services and fee schedule was
faxed to City Hall late afternoon. O'Neill or Koropchak have not read the contract
which was presented to the HRA members for review. Additionally, the HRA
acknowledged the receipt of the letter of recommendation from MCP Chair Bob
Bowen.
Tom St. Hilaire made a motion authorizing the HRA to enter into the Contract for
Monticello Downtown and Riverfront Revitalization Plan between the Monticello
Housing and Redevelopment Authority and Hoisington Koegler Group. Inc. subject
to the HRA required signature being changed to HRA Vice Chairperson Brad
Barger and subject to review for approval by Attorney Steve Bubul. Brad Barger
seconded the motion and with no fuller discussion, the motion passed unanimously.
Page I
HRA MrNUTES
APRIL 11, 1996
Hilaire noted that although the HRA has entered into the Plan Contract, the MCP
is the lead organisation and will oversee the follow-through of the scope of services.
3. OTHER BUSINESS.
Koropchak informed HRA members of an April 24, 1996 meeting with Michael
Schroeder of Hoisington Koelger. The meeting scheduled for 7:00 p.m. at the Senior
High School Auditorium is for all MCP volunteers and City Council and Commission
members. Barger and Hilaire noted they would not attend as they were out-of-town.
Next scheduled HRA meeting is Wednesday, May 1, 1996.
ADJOlJRNWMNT-
The HRA meeting adjourned at 5:45 p.m.
011ie Koropchak, Executive Director
Page 2
MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, April 3, 1996 - 7:00 p.m.
City Hall
MEMBERS PRESENT: Chairperson AI Larson, Vice Chairperson Brad Barger, Tom St.
Hilaire, and Roger Carlson.
MEMBERS ABSENT: Everette Ellison.
STAFF PRESENT: Rick Wolfsteller and 011ie Koropchak.
STAFF ABSENT: Jeff O'Neill.
GUEST: Steve Bubul, HRA Attorney
Jack Hutchinson, US Postal Service, Monticello
Charles Ehlen, Cinco Corporation
Terry Mick, Developer
John Komerak, Developer
Chairperson Larson called the HRA meeting to order at 70)p.m.
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Brad Barger made a motion to approve the March 6 and March 20, 1996 HRA
minutes. Roger Carlson seconded the motion and with no corrections or additions,
the minutes were approved as written.
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Jack Hutchinson, US Postal Service, Monticello, informed HRA members of his
request of the HRA to enforce the filing of record of o 20 -foot wide easement for
purposes of ingress and egress in favor of the City of Monticello to be approved by
the City Attorney. With one entrance only and the increase of fender -benders, the
Post Office moved the street drop-off moil boxes 40 -feet to the west. Long-term
plans include an August construction of an annex building for carrier and mail
processing located on the property next to Burger King. 'Rte existing window and
box service will stay at its present location reported Hutchinson.
Page 1
HRA MINUTES
APRIL 3, 1996
Charles Eblen, Cinco Corporation, asked, if the Development Agreement is a legal
paper and if so, why is it not enforced? Rick Wolfsteller responded no record of
easement was filed. Originally, the City had a 12 -foot casement along the northerly
Flake property (Office Building). The HRA or City purchased the David Capp
property house for a sum of 532,000, demolished the house, and sold the property
to Metcalf/Larson for $10,000 for utilization as parking for the new office building
and as a 20 -foot easement for the purpose of ingress and egress. The 20 -foot
easement in exchange for the original 12 -foot easement. The City could opt to block
the 12 -foot easement.
St. Hilaire felt no action should be taken without the presence of Metcalf/Larson.
Metcalf/Larson were informed of the meeting. Attorney Bubul informed members
if the easement is recorded and assigned to the City of Monticello, the City becomes
a party to the maintenance agreement. As is, the issue remains that of
Metcalf/Larson and the Cinco Corporation/Post Office.
Ehlen recognized and agreed with the safety concerns of the post office and the
inconvenience for customers. He noted the the post office lease expires in year
2000, and felt Metcalf/Larson benefitted from a reduced land purchase of $10,000;
yet, Metcalf/Larson are not forced to follow-through with their agreement to provide
an easement.
The HRA's objective for not enforcing the contract was to encourage the two
property owners to communicate and negotiate a Maintenance Agreement. Or
secondly, to encourage Cinco Corporation to purchase the City lot (Hass Property);
thereby, providing their tenant with an entrance/exit to Linn Street and increasing
the value and marketability of their rental property. The HRA recommended the
two owners sit-down and discuss the various options or Ehlen consider purchase of
the City lot.
Terry Mick, developer, informed HRA members of a proposal to construct 80 -units
of a combination of market and low/moderate income multi -housing on the Brennan
property located to the north of the proposed West 7 Street and to the west of
Minnesota Street. A market study has not been done nor has the Planning
Commission viewed a preliminary concept. A developer cannot get Section 42, Tax
Credits without City or HRA TIF assistance; therefore, Mick requested the HRA's
Page 2
HRA MINUTES
APRIL 3. 1996
consideration of TIF. Law/moderate income housing is not subsidized housing. Tax
credit application occurs three times a year beginning in March.
After discussion, the HRA unanimously agreed that the low/moderate income multi -
housing concept did not meet the objective of the Monticello Comprehensive Plan,
therefore, the HRA declined utilization of TIF. The Comprehensi"e Plan
encourages the development of quality housing. The HRA told Mr. Mick that said
the community would welcome and support the development of upscale housing.
Koropchak informed HRA members of a conference call between Komerak, Larson.
Barger, Kompchak, and Attomey Bubul on March 29, relating to Komerak's further
negotiations with Katzmarek to purchase the property without eminent domain.
Komerak received the go-ahead to negotiate a purchase agreement for the
Katzmarek property in the amount not -to -exceed $100,000 for the property and
$50,000 for relocation costs for a total of $150,000. Vacation of the parcel to occur
no later than late fall 1996. The relocation consultant was placed on -hold and the
appraiser was to complete the appraisal. It was suggested. the HRA consider
swapping parcels with the City (Katzmarek property for the Gille property.)
Chairperson Larson reported on his initial, somewhat -hostel conversation with
Katzmarek, the potential legal and consultant expenses of eminent domain, amd of
Komerak's time and effort negotiating an behalf of the HRA. Larson felt $150,000
was a reasonable amount at the end.
Komerak informed HRA members that he had a signed purchase agreement with
Katzmarek. Five -thousand dollars as earnest money and $140.000 payable upon
closing on or before June 30,1996, contingent upon HRA approval of Komerak 's use
of adjoining party.
Until receipt of the Prairie West Plus proforma from Mark Ruff, the need to discuss
swapping of properties is irrelevant stated St. Hilaire. St. Hilaire questioned how Use
assistance by the HRA evolved to S145,000 for the Katzmarek property. $160,000
TIF, potential swap of a $32,000 City parcel plus forgiving water and sewer
assessments
Page 3
HRA MINUTES
APRIL 3, 1996
Members agreed that Komerak needed to provide a copy of the three purchase
agreements to the HRA and to submit the needed information for the proforma as
required by Mark Ruff prior to further discussions.
The preliminary estimates of the TIF Surplus Fund indicates approximately $155,000
at the end of the tax year 1995. Without projecting any new expenditures, the
atmual surplus expected over the next ten years is $100,000 to $150,000 per year.
Koropchak noted the expenditures under consideration: Planner consultant fee and
Katzmarek and Fluth properties.
St. Hilaire questioned the $150,000 for (Katzmarek) property located in a flood
plain. Members asked what percentage of the property was buildable? Without
seeing the proforma. Wolfsteller questioned if the amount of TIF and HRA
assistance requested was subsidizing the somewhat high acquisition costs negotiated
by the developer. Koropchak informed members of the need to enter into a Pre-nF
Agreement with Komerak to insure development and to protect the HRA. HRA
members agreed for the need to define a strategy for redevelopment: Establish
proforma, consider TIF assistance through Redevelopment District, consider
acquisition of Katzmarek property, and consider deeding Katzmarek property to the
City for green space or swapping Katzmarek and City (Gille) properties.
At a special meeting of the HRA on March 20. the Commissioners authorized John
Farrell to appraise the raw land located at I I I West Broadway. The intent of the
HRA was to present Bang Fluth with an offer to acquire the mw land through an
option agreement. Terns previously discussed were S2,500eamest money, not -to -
exceed nine months from the date of the option agreement, and first right of refusal.
The HRA reviewed the appraisal which appraised the I I I West Broadway property
at $37,000. Attorney Bubul commented on the HRA cashflow noting the future
need to identify a plan for expenditure of TIF Surplus dollars as Legislators
ultimately may place restrictions eliminating the HRA's ability to collect the TIF
Surplus. Because the initial TIF Surplus appeared lower than originally anticipated.
the HRA could consider an internal loan from the City for acquisition of the Fluth
Page 4
HRA MINUTES
APRIL 3, 1996
property as the initial cash balance of the surplus dollars maybe spend on the
Katzmarek acquisition and the hiring of Hoisington.
St. Hilaire felt no risk existed to the HRA relating to Mr. Fluth's finding a willing
buyer for the said property. Tom St. Hilaire made a motion to offer a first right of
refusal on the 111 West Broadway property. Terms: Not -to -exceed three years at
$100 per year. Attorney Bubul to draft document upon acceptance of offer by Mr.
Fluth. Brad Barger seconded the motion and with no further discussion, the motion
passed unanimously.
CONSIDERATION OF AN UPDATE RELATING TO THE PROCESS TO HIRE
A CONSULTANT FIRM FOR THE PURPOSE TO PREPARE A STUDY/PLAN
FOR THE DEVELOPMENT OF THE COMMUNITY/RIVERFRONT.
Chairperson Larson informed HRA members that Barger and himself along with
MCP Boardmembers Bowen and Maus and Assistant Administrator Wolfsteller will
be meeting with Michael Schroeder of Hoisington Koegler Group, Inc. on April 5
to define the scope of services and negotiate a not -to -exceed fee. Larson will
attempt to negotiate a lower fee based on the team work or participation of MCP
Committees. Chairperson Larson asked HRA members if they wished to hear the
results of the negotiation meeting prior to the HRA hiring the consultant firm.
Commissioners agreed that was not necessary. Tom St. Hiliare made a motion
requesting MCP Chairperson Bowen submit a letter of recommendation to the HRA
recommending the hiring of the consultant firm of Hoisington Koegler Group, Inc.
Ile negotiation team having free hand to define the scope of services at a fee of
approximately S80,000 plus other services deemed necessary. Roger Carlson
seconded the motion and with no further discussion, the motion passed. Yeas: Tom
St. Hilaire, Roger Carlson, and Brad Barger. Nays: None. Absent: Everette
Ellison. Abstention: Al Larson.
A special meeting was set for April 11. 1996, 5:00 p.m.. City Hall, to review the
Contract between the HRA and Hoisington for authorization to enter into the
contract. Contract will be prepared by Hoisington and reviewed for approaval by
Attorney Bubul.
Hilaire noted ifthe IIRA elects to expend $145,000for Katzmarek, SI60,IN10on the
Banyai and Hanawalt properties, dollars for Gille property and public improvements.
and upfront assistance to Tappers: he would resign from the HRA. January 1, 1997.
Page 5
HRA MINUTES
APRIL 3, 1996
OTHER BUSINESS.
a) Approval of Monthly Bills - HRA members OK'd the March bills from
Kennedy & Graven and Public Resource Group, Inc.
b) Other -None.
ENE" s7, v)znfxI
The HRA meeting adjourned at 10:30 p.m.
Q� d\
HRA Executive Director
L
Page 6
HRA AGENDA
MAY I, 1996
3.
A. Reference and Backemund.
Enclosed is the revised projections and recommendations for the TIF Surplus as
prepared by Mark Ruff of Publicorp.
The previous proforma only focused on the tax increment accounts. the revised
analyis includes tax increment, HRA general fund, and debt servie funds. At the end
of T[ year 1995, the HRA had a combined cash balance of approximately 5485,(XX).
In the future, Publicorp expects approximately $130,000 to S190,(XX)in net annual
tax increment revenues, excluding interest earnings and the HRA levy.
Mark Ruff will be present at the HRA meeting to summarize the proforma and to
outline the recommendations.
Note: Interest Income, HACA Loss, and HACA Offset Received
B. Alternative Action.
Recommendations:
I. A motion approving the recommendations as outlined by Mark Ruff.
2. A motion to deny approval of the recommendations as outlined by Mark
Ruff.
3. A motion approving a selected portion of the recommendations as outlined
by Mark Ruff.
Request:
I. A motion requesting Publicorp to update the TIF Surplus Proforma annually.
2. A motion requesting City Staff to update the TIF Surplus Proforma annually.
C Page 1
HRA AGENDA
MAY 1, 1996
C. Recommendation -
Staff
recommends Alternative No. I approving the recommendations as outlined by
Mark Ruff. Staff makes no recommendation for updating the proforma at this time,
this depends on the City's access to the software.
D. SuMning Data-
Copy
a aCopy of Revised projections and recommendations and the TIF Proforma Summary.
C Page 2
Ehlers and Assoftmhm
LEADERS IN PUBLIC FINANCE
y
I 0
April 23, 1996
TO: 011ie Koropchak, City of Monticello
FR Mark Ruff
RE: Revised Version of Tax Increment District Projections
Attached is a revised version of the current and projected balances for the HRA's tax increment districts. the
previous version of the pro forma focused only on the cash balarxe in the tax increment accounts. We have
reviewed all three HRA accounts (tax increment, HRA general fund, and debt service funds). At the end of
the tax increment year 1995, the HRA had a combined cash balance of approximately $485,000.
Approximately 50/A of that amount is in the HRA general fund. In future years, we expect approximately
S 130,000 to 5190,000 in net annual tax increment revenues, excluding interest earnings and the HRA levy.
We also would like to suggest the following recommendations to the HRA:
1 . Close out decertified districts and transfer any balances to other districts.
2. Transfer out any land sale income in the tax increment accounts to the HRA general fund, which has
less restrictions on the types of eligible expenditures. Interest earnings should also continue to be
placed in the HRA general fund.
3. Maintain SO balance in the debt service funds.
4. Consider paying the annual difference in HACA penalties for districts which the City did not expect
a shortfall, with land sale proceeds or excess tax increment revenue for eligible city costs such as land
acquistion or assessable costa. The total annual net HACA loss to the City is expected to be 520,000
to S30,000 per year for 8 years.
5. Carefully monitor any districts to assure that the 101/6 administrative limit is not exceeded at the end
of the district. Use land sale proceeds to cover administrative cost in excess of 10%.
6. Modify the budgets to the tax increment plans which project more increment then is currently allowed.
The budgets should also be modified to allow the HRA to pool the more restricted tax increments from
past 1990 districts on debt service for eligible expenses.
OFFICES IN NIMILAPOUS, MN AND BROOKFIELD. WI
2950 Norwest Cantor .90 South Seventh Sweet. Minneapolis, MN 55402.4.100
Telephone 612.179-9291 . FAx 612-339.0854
CITY OF EtoFmenLo
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HRA AGENDA
MAY 1, 1996
�.1 I .I' �f 1'
7 ! Y 11ej 11 011 IVIIII %(. �M .1 1 .1 1 1 yl H 1 1 %(' lt� 11. 11 it
Vl=.y11 �1
A. Reference and Backe or und.
Purchase Agreements
As per the request of April I I HRA meeting, enclosed are copies of the Ranyai
($100,000) and Hanawalt ($90,(H)O) Purchase Agreements between respective parties
and John Komerak. Both are contingent upon HRA approval.
Revised Prairie West Plus Analysis
With a revision in the number of units for construction from 12 to 10 within the
proposed district boundary, the tax increment projection over 20 years is reduced
from $160,(N)0to $135,(XK)NPV at a 8.5% interest rate. Ruff states in the enclosed
analysis that a $130,(HN)TIF assistance ($65,000 up -front and $65,M) pay-as-you-go)
plus the value of the City land (Gille) justifies a reasonable return of 6.5% on the
` project. Without HRA assistance, the return is 2.1 %.
The City can avoid the HACA loss if it commits to a local contribution of a least 5%
of the expected tax increment. Therefore the recommendation is for the City to gift
MOM of the value of the City property and receive payment of 51500 from the
HRA.
Recommendations - TIF assistance of $I30.(MX) NPV at 8.5% interest rate over 20
years plus $15,00 for City parcel. City Council gift $20,M) value of land.
Pre -Development Agreement
If the IIRA agrees with the above recommendations for assistance, the HRA should
consider a motion of authorization to enter into a Pre -Development Agreement with
John Komerak. Although the Purchase Agreement closing dates are on or before
June 30, 1996, it is the recommendation of Attorney Bubul and staff that the
agreement he effective for a term ending 90 days from its date. Secondly, normally
the HRA requests the developer provide a cashier's check in the amount of SSAX)
which is returned upon execution of the Private Redevelopment Contract. It is
understood that the developer may propose that the $5.(MM) earnest money of the
Katzmarek Purchase Agreement be a substitute for the $5,(K)() cashier check. Legal
Page I
HRA AGENDA
MAY 1, 1996
counsel and staff recommends to keep the two transactions separate and request a
cashier's check inorder to keep the deal cleaner and if for some unknown reason the
Katzmarek acquisition or the Prairie West Plus project do not materialize, the HRA
can recover its incurred costs.
Although the Pre -Development Agreement directs staff and counsel to begin
preparation of the TIF Plan and Private Redevelopment Contract, it is recommended
that the HRA and City Council meet to discuss the total project and particularly the
City's willingness to gift 52009) of the value of the City -owned property. This joint
meeting date is suggested for Monday. May 13, 1996, 6:30p.m..prior to the regular
Council meeting. After Council concept approval for the overall project and
participation, staff and counsel begin preparation of the documents.
Recommenda lona - Authorization to enter into the Pre -Development Agreement,
agreement effective for a term ending in 90 days, request a $5.000 cashier check, and
agree to a joint meeting with the Council on May 13.
Private Redevelopment Contract
Lastly. the HRA needs to determine the method of delivery of the TIF assistance
and the timing of the up -front payments.
Komerak requests 50% of the $65,10(11►up-front be paid at the time of closing on the
Banyai and Hanawalt properties and remaining 50% at the time of construction of
the road improvements in the first phase. Staff and counsel recommends payment
in three phases. A portion paid a closing and perhaps SIO,199) per unit upon
completion of construction until the 565,199► is reached.
Next, the HRA needs to determine the priority of payments to the City and pay-as-
you-go note. Recommendation is a 60/40 split (HRA/dcvcloper).
R=mmendations - Up -front payments in three phases with a combination to ensure
collection of 1'1 revenues and a 9)/40 split (HRA/developer).
B. SungningJ ata.
Copy of the Hanawalt and Banyai purchase agreements, revised Prairie West Plus
analysis, and Pro Development Agreement.
Page 2
wnlu rat r., .. S1�'A NI)AIZU 1.1AM 11-W. 1',
q�v
I INI Nu I r..l't' ala EN.Selbr. l•,qn
PURCHASE AGREEMENT I -INK Hoo—'. 11-1.
Monticello ,Mmoesota February 1g 96
nECE1VED OF John E. Komarek diva Cedrus Creek Crnftsmnn
Ilse sum of —Einee 11tuldred----------------------------7---------Dollars Is 500.00
—check n<earrmst nmm!Y to Ito delrnsitml the nr..l hosionss day after Acceptance in trust account of listing broker
niess otherwise specified In wr ilingl and In pan Iwinteol loo the purchase of rite premises legally described as
_ PIN 034305
Legal to Cavern —
—
locatedat(SoantArkhess) 1700 West Broadway
City of —Mon ticel Lu ___________._, Coniv Ill_,W[lght _, Smteod Minnesnln,
uraudulg all planta, slnulis AM uses, nil soar... wonclows and/or .... loo. slam chars, enemas. Awnings, wlrivlow shades, blinds. current.
Ira Verse oklrylmY nils, allnrhml hghlillg hxlurrs wdhlndlra, plunlhlrgl Iultrom, water heater, hanhnt system, humiridim, cl!nl.al as culrhumur>.1.
elerum
olc an holm, nlllmllalir, garrote do- operml Wcith neo 9, wooer stollen!,, cable heleinsiml oolle(s Arai cabling. BUILT-INS to nw.loilr!
doshwaslml, ga.ltage disposal, crash cmnpaclor, otveMsl. axoklo or) sh v , ouclrlWaim oven. hood -fan. Intercom, installed caroming, IF ANY.
located on the premises which are the propmly of Seller ami also Ilia following personal properly.
refrigerator, air conditioner
all of which property Seller has this day sold to Buyer for ilia sum of. 6 90.000.00n
�1 Dollars.
which Buyer Agrees to pay in the following manner. Earnest money of Sand
5 _12�j00.00 A _cash on M Mime Jun 1996 a _ , I m date of dosing, and ilia balance
of s 57.000.00 * by financing as follows: _.m2C£..V!• ��@—by�_&@LS9.111B_L.1Le 4X15bAg8
first mort sage of record.
is Amounts to be adjusted per the exact: balance on date of closing. Contingent
upon Monticello (lousing and Redevelopment Approval.
Attached are addendums which Are merle a pan od this agreement.
SUBJECT TO performance by Buyer. Seller agrees to execute nrrl delrvar a Warranty Deed.
lobe joined in try spinose, if any, cotveyitlg markelalle title to the Irmoises suhjrra noly lis the lollowilgp axcelnh)ns:
111 Ihuhhllg nM roodry Inws, m rtimnces. Shia and rmkn til n!gulal here. (2) Ih!Strlfl gr151 alAhllg 101159 m nI11MAVINlm111 nI lila IgamlSe$ WIIIgn II
nllnclive llnicillne looraq—n 191 nesmvniturl til anyorlm•rals or mimmallyphts In live Stale of Muurosota,(4) Ulillyand (hauvnga easenm.ls
wtoch chi nor inlerlare with lormnl myrorvrnlaniS (5) IIIghis of lemvas, dairy.
REAL ESTATE TAXES Seller agrees to pay 6_ / I lots and Buyer agneas to pay 6 / 1201s of taxes due and payable in the year
19 — Seller agrees to pay. 12 / 12118 told Bny.l Agrees uI pay 0 / 121hs of cement installment of spacial assessments due
and payable in ilio year 19 96 Set ler 1Veos lis pay on IIIc date of closing all special asumslllenls loitied nod pending
Buyer sha'I pay taxes duo and payable in the year 19 9-L )Uti(111�11T1}JOSIIIK11iW!)4Nrd libKdifllAAfifdfiNl� N d�lAt
loid)fimai dim Seller warrants that taxes dim .uxl payalla In Ihn yenr 19 97 __ well be Non- homestead
classification Neither Sallee Iter Seller's Agent makes any nyuasenmlmin cotwernorg tire mnmmt of future real estate laces.
WARRANTIES Seller warrants plot lruldulgs, d tory, non enululy wilhin I1g1 IrOurhny hoes td live filemises Salim wnonots sun All
npillallces, llnalnoot nlrl nu ronfekolo qp, wungl Aidplunitrtglus.nIand lucalmlml tom give isosmomrop:r arokingoihn multoeofdncnl9
glove., Ices right ton slr'I:i p. mmsevolitter lis close MI Bolym st all sal Illy hunsnl l /her sell at Ins/her egvense that All Appliances. Ileal inll and err
coolblounll, wingl old prunllrvil are to proper wsukettooh!, White chmovil Seller wa.auos rival lm penuso!s ronoamnmAml to coy --
KI Ve,!, - I I rut, cry moot, 1IV..% - I I IN, II Ill. 1geI1115C5 lol11h'Stlolyoa Ir sulmiamialty (IAuugprl try Inn too Ally olllnl cause IwImn Iho
Him.ot hail!, pot; 1811 m!IIII!111 shall (an:ocoo cull noll NTMI at 111ry.'s o ppl nli'l llm ilalol!SI Raney shall Ito lefuodod to Boym
POSSESSION 5e11m Ippms to obiiwv IgnsessNrn ern Inter Ilton pato of _ _ ch ming
All inlet Pool, my palm nnJ eawa, c�Itogp)s. olmalw oy ural oahntil 11090,1" lies, front n 1 Aral hotrod l+ou Unum qns shall Ion pro ,nt.1 lrnwnml 0..
lonces as, II o a le_u _ c_ ua IIK___ So111m ugvfns rot Imbert nil Ihdr 1s mrd 1.11 lie.m.ud plgrBly na owllnloot herein hen lho
INnnllses hichr. 1rlisrlssNr"Ima
TITLE h EXAMINATION Salim dlali, wilhul a mnsnnichlo unto After m:enpnanco of If,,, ng anlmm�I lunush an Abshacl o r rule, a a
neglslmml Mrymrry Allsnnr.Lcmuhml hl dale louldminlroper emnrchns rrlvnr mglmnklupgmee. SialAtom FederalprlgmalgsnMlmns Rover
'' .IIItonIIo~'I tomo^.mesoodryti aIle.. rtmngnlir 0.1 nnlrm.I tlllA nlrinvlknyl Any dylu.loris,nMlmh oolmll lin tomb mwnlnig tr Ik!.mnd
via Ilmryohpnauuu5 slrmnde, Sellro s11A1 Irl nII1MM1!III2111Ay'an11111k.I11111111i11 k11111hIP Pnlydlllq Cmlaf:I11111 U1111I11, 1g1Y11M11IS IN!IP.Illrkv
.Il111l0 0wil 1111 gm5ftrrgrl, IIIII olrm co—!h.en ll IIIIe mal will till 10 days Aller m.nen nonce lis IIIrym. ilia ler tills shall INA lm til this
ago n.,mrnl accuo hrgg 10 on Imnts Il Into I9 All curl Anted wnhm 170.Inys hon the date. til war dim Il11rtcIn)o. if uo nu
s nffpeenornl shell till mitt
wool, AI oydhNl til Ihrym, nclllr'r imply slmll Ito liallr. Ina vlaln:rygrtn Imnqurlm to Ile Wlrn, ural eanrosl nrrleV Itlmll Ire lalurn.lerl In 0uye,
Of:rAUL( I11111r.Bmndelnll.miscmlmuml wlllun anrlhnve,mrl0olym ololnulw ulAny nl ole lypomnvenu lmleln, Sn11e1 may mmm�mnllus
gyp rmneni, ArltlmnslydllmmumtlrrlillimYulrnln nsnk'hermurkr sl mlllq rmaulrnllN $eller 111 MIAIgmll, n9IIIn1r Ir!$1r1d MI11111!.1l919lndy iyyr!AI,
11910 p Irlilha lhllitilgl!n, II.r! i xlgyl Od 1rt na91!1 M:A I q.YQl I Iu9lrovngrl slmll Iq A okq r M}.IItg1 14M IVI,11Iq) I III It Id el lkre111111I NI almmllc Irs Ila IImIM:1!
,if Ilots loll ...... relit,lr-or"I IIIII not (in., will Is Irll(ellllllwil!. I Invil Intl.. Io enf, 1•A51—Awgm. follicle, we Is cellrlr!1 went within sox IINr111s'llll'1
such rlghl til Achon Ansas In l he event B cover dohndts til his par lutmanco of oho lentis of this Ago moment, And Notice of Cnncellal ern is
served upon the Boyar putsuanl to MSA 559 21, Ihn Imomnahon pm and shall he Mir ly (30) days as pot noticed by bnh,hV smn a of MSA
55921
ACCEPTANCE Buye,unlotstnlrls eollvgremn nice Ilion sale in snhjerd Ila nccrrydnn,:A try Salim mnv(tdng Agenlisr"Imbleorospomslblo
on account of Inds ogroenen, oxcelr to return at trcrount fa thin a001as1 nrrtay
AGENCY DISCLOSURE .NA—sopubales he at she Is repesenting IM
In this transaction, The Boiling agent or Woke stipulates he or she Is representing IM seller In this Iransactlon,
1 1, Ill* owner of Ilia promise,, accept this mglaamul l end
the sato
/" mod...
' LEB �• / % O�G�
SE.
Defiyery of all papers and nionliess "Ll be mode of the office at:
Coq' 129LV ACWI CapLOkAVO.
Address Monticello. MN 55762
low lo 11urc1 rte p or nsas lot the Mico evident IM terms and
earldll lorlt tell 1
BUYER lb t1 WF 7
BUYER
Whig Agee _HA
City lip
IF Nf1T Ill C • r` TFNT AnviPF
• dn— wnrrernn..r,h,,.
M., int'1:�,��,•.. STANDARD
MN Ylaaaew nn.n.:c..r•
tat Ntire acy r.nF.t:N,GlI.:.rat..
•�"
PURCHASE AGREEMENT 1INKIlurni.nT.ir
Mont irne jq __ , Minne."a Fehri,ri— , 19 36_
RECENEDOF John E. Komarek dba Cedrus Creek Craftsman
the sum of Five Hundred - - - - - - - - - - - - - - - - - bollarsls 500.00 )
by as earnest money to be itasiled the nest business day after acceptance in trust account of listing broker
(unless otherwise specified in writing) anti in part payment lot Ilia putcha.wof the premises legally described as
Legal to Cavern
PIN 033401
located at (Street Aoklness)1 ]04 W TL0adkrav
City of Monticello .Cretenlyol Wright State of Minnesota.
including all pfenls, shruha and bees. all Sloan windows nml/e nhnerls. slorm drams, screens• awnings, wirxlrnv shades, blinds. cnrlein-
oamerse-rkelory.,xls, altnelenl l,ghting h.luras welt hones, plumblnq lixl cera, vole firmer, loatag system, Ieimiddim. central air conhtrcmtng,
rlcr,unn+r, nn hllm nmlm,rellm gmaW, ("re antro, with rnnfrrds, water snhrner, cabin Irlevismn n,nirns nnt1 cabling. BUILT-INS to Inchde
d shwashm. gad.'tgr- dslwesal. Irish eompamOr, welds), cratklgr %hive, mrernwaw.. wan, heal -Inn, intercom, installed earpolmg, IF ANY,
located on Ilse premises which ore Ile Iaopa.ly of Seller aml also the following hervatal property. —NotP
i all of which property Seller has this day sold to Buyer for the sum of: SI nn _ inn _ nn
One Hundred Thousand -- - - - -- - --------- - - - - --- - - - - -- Dollars.
which Buyer agrees to pay in the following manner: Earnest money of 6 500.00 and
s 99.500 cash on or lwleo _ JUng_3Q.,-1996 , ilia date of dosing.tfgBjA tkellb)Re
d14 al/QNlaw& ""pant"
Contingent upon approval by the Monticello (lousing and Redevelopment Authority.
60 day Grace Period on relocation of Seller if deemed necessary by agreement
of both parties.
Buyer assumes property in "AS IS" condition regarding services.
Attached are —_ adlendums which are made apart of this agreement.
' SUBJECT TO performance by Royer, Seller agrees to execute and deliver a _4111E.C.s.Ldsizd Warranty Deed,
to be joined in by spoose, it any, conveying inalterable title. to lite (premises sulryncl only In the following exceptions'
(1) Building neat toning laws, Ordinances, State antlFek r"I rrgulaliuns (2) Resire tin sralatir o to use a inrynovement of the premises -afro t
ellmin a lar foil.,. el pro mesion (31 Resevnuah of ferry nunarnls tr enior.al reghls to lire Stoical Minnesota. (4) Utility and drainage easements
which do net inl .ifere wilh present improvements (5) Rghls of tenants, d any.
REAL ESTATE TAXES Salle, agrees to pay _6 _ / 121t1s and Buyer agrees to Itny _6— /1 2111; of taxes due and payable to ilio year
19 9A. Seller agrees to pay 12 / 12llts Oral Boyne ogress to pav _ 0_ / 121hs of annual installment of special assessments due
arid payable in the year 19 96 Seller agrees to pnY on ilio due of closing all spacial assessments Ivied and pending
Buyer shall pay taxes due and payable in the year 19 AiNKliiitKKN%F11i>IOfA{aYtNlfOfi!>K16R161Ji1>Gil>tlCeOtlUIIOriICxpCfyagM�eal'OYtXtA
AIUNNsrstMi. Steller warrants that tares due and payable in Ilia Vent 19 .91- will be 14,10- homestead
classification. Nmdmi Salle nor Seller's Agent makes any nelreserdalian cozening ilio amount of future real estate taxes.
WARRANTIES Seller venoms then touddtngs, if any. are entunly weth.n ilea boundary Innes of the premises :eller warrants Ileal all
nlxtlinnees. heating and oil conditioning. wu u g and plundrng usorl and lr:nuvl on Ilan premeses are maternal working order on data of close ill
Ruyr.. hnsrghl to ntntrNa prrimiWeS prig to r.losing Buyer sting sefwly himsell/horsefl of his/her expense lent all appliances, treating mulnn
contnonieg, wiritg nook plundotg ere, in Irrq,rr wa,rknyd oa.lrr Irdurr r -Insult Srllrr wnrrnnls Ihnt tlw Irennsea Mee rrwlnorlml In coy newer
I I yes •Minn. Gly writer I lyes - bs no II ter Ix enu•a+s ore rh•Sureyerl fir sulwtnnlially dmnngml IN life m ferry office cause tt"IOre the
el.,soil dote, tills rigreenrer it Shoff hectare" mill relief q,ul at 11"Ve 'n,$,I Merl, aim IIIn ern nest money string be. refurvel it to Butern
POSSESSION Seller nieces Io.h+burr lossesarm run late Ilia., date of _ _ closing
All imeegiyoy walet nlld a nn chat gas. elecimny fired nntm of ties cleat gns, lung rid mal lewd lrenotaum gas shell lire pro•mlml lotwenn lite
lutrliees as of _ rllllc a ___ Seller agrees to rmnwo nth tlohe.s and all poisoning property not included liaieen limn IIIc
p, at am befine possnsnton date
• ' TITLE 6 EXAMINATION Seller shrill, women a tensonnble, tin,., after occrynmen ,d Ihle agreamn I- furnish on Abstract of Tole. Or n
nogisterect Properly Absurd, cerlihedtorlalrt tumelmMprgear semehoscoval.eg bonkngaGns. Slnln endfmlm et judgments adlmnf Buyer
.V shill Int elflowed 101neeoss (Ings rifle rxrupf In oxnmmaton .d (ilia and making any olgeelwtns, which shall be mndo in wring n deemed
walwd Il arty objeta"rt is so metric. Seller ahnll tie alluwed 1204ays lomnke. Idle roar kelable Per x ling em foci ion of hl In, payment% hrtiminde,
'eiplirml Menti fee lontloned. hal upon rnrrxnn of ole newt within 10 days after wainen eoticn In Breyer, Owl fireflies shall perform Ihm
no'cemenl accord u o lu ns terms If pilo m own r—oclad WelIh111 120 dayslian tree linin ret wrinmh dtjxtelxl, Ibis nregnianl shill Ixp null mxd
' • void, of option ill Buyer, noiller Panty shall be liable lot (in ages Merfnin o, to Ilia other, and earnest honey, shelf be refunded to Oliver
OF:FAULT It 1.1 don norlintrible Of is cm rertod wil hin surd Iinto,md Of defoufls to cry of Ilia nip eaments hot am, Seller may ter minalo tills
+ title ealaen, nnlon such lm aurmtirm nlllwry.ioritsmnk lemeunttm rdmll In rrlmntsl IN Seller newt Agmil, as than respective intoresls nnyalMom,
051.1,1 Lmmhhfemages, Iniolnagolllorenwrrv, Ixt.mn tlun lrrvesrn stroll met. fell, wo enlwr{xirty of leo right of mdmcng Ilia specific lwahxmnere
t
of then ngreanhrnl,Wwrtlmf tills alpeemmsiUn.mi fernunntel nmlaclnn menlOrce specdtcpailmmnnce is commorx,ntwithin sit ntnnhn title,,
such sight of ncllon nnina In Ilia nvool Buyer dnlnulls in her polar moons of the terms of this Agrermgnt. and Notice of Csncnllnl inn to
nrfvedupuiiIlwBuyer pursunnitoMSA5;.921,Ilielalminnbonper.udshall belh.,ny(30) days aspormiltodbySubdivision sulMSA
559 21
ACCEPTANCE Boym indrl,smrxtst and open•, dull this gain is subject to xcelnrince by Seller m vvtlli g. Agent is not liable or f esponsiblo
On nccounl of this ngreament. excels to return Or occaml lar Ilse enrnasl money
AGENCY OISCLOBURE __ Nom_ stipulates he or she Is representing the
In this transaction. This listing agent or broker stipulates he or she Is reptasenlblg the *@Ilan In this transaction.
I, the owner of die promises, accept this agreement and I note" to lrucloso life pr uses lm the leico and oorntJJhM/ime"a and
the set hmebyL _y UYllorts sof h n6ove/ 1 //
t
SELLER O
but 6s` — � UYER
Y elm r o
!n SELLER.
II at W.alVill-. BUYER
Delivery of all papers and monlea .,hell be made at the office of:
Company, _ Johnn-_ `¢n— -Int Selling Agrrd --KA
Addess A2ont42VCA1111 R %362 City 20
APR 29 '96 12:16PM EHIRS & ASSOCIATES P.2/6
-- I&EWNEWANOMMUM
LEADERS 111 PUItIC FIaA116
April 27, 1996
TO: 011ie Koropchak, City of Monticello
FR: Mark Ruff
RE: Revised Prairie West Analysis
Attached is a mvised analysis of the Prairie Wctt redevelopment project The fust change is that the number
of units in the tax increment district is less than previously projected. Instead of 12 units, the units in the
district boundaries will be 10 out of the 29 total units. Attached is a projection which shows that the tax
ine:rernant over 15 yeah would be SI 16,000 at a g.5% interest rate and S13S,0D0 over 20 years.
We have also reviewed Mr. Kwu ek's pro tome and have found that a total of $135,000 in assistance with
$65,000 of initial assistance std $65,000 of pays -you -go plus the value of the City land would be justifiable
for a reasonable tetum on the project based upon information on costs and tevemm provided by Mr. Kosarek.
Without HRA assivarxo the return on total sales to rhe devaksper would be 2.1 %. With HRA usistusec the
$130,000 plus the City propesry would provide a 6.S% development fee to Mr. Komarek not including any
fees he may pay to himself for conaruetim mange meat or broker, if any. This amount is krwerthan a typical
town house development fes of 9.5% for this typo of product.
Thee method of delivery of the usismInce and the timing of rho upfront payments aro yet to be finalized. Mr.
Komarek has requested that 500A of the $65.000 in up -front assistance be paid at the time of closing an the
properties in the proposed tax increment districts (the Hanawatt and Banyai properties) and 50% at the time
of conatruetion of rad imprmmmu farthe fou phase of*A project. We are recommending that the up -front
assauan be paid at three hx nlents. A portion would be paid at closing, approximately 510.000 per unit
be paid at the completion of emutrucum on each twinhome or quad until the $65,000 limit is reached. The
remaining 563,000 of assistm would be paid over 20 years to Mr. Komarek. The attached cash Flows on
the total project have assumed a general payout schedule which will need to be refined.
The HRA would also be repaid its 563,000 out of tax inlxement over 20 years. The priority of payments to
the City or the pay -as -you -p note will also be finalized. We recommend that the split be 60140
(HRA/developer) with HRA receiving at lean enough to amortin its debt over 20 years.
At you are aware, the City m avoid a HAC.A loss if it commits to s local contribution of at least S% of the
expected tax Increment. It is our ursdercanding that the City has used $33,000 of general Poled dollars to clean
up the City owned property insolved with Otis project. If the City were to gift $20.000 of the value of the City
owned property and receive a paymentof approximately $15.000, the HACA penahy would be avoided and
the City would receive some cmnpertudon for HACA losses in other distrku in addition to lax revenues ftom
the 19 units of housing not included in a tax Increment distrix
We expect that a public hearing on the etmbl Waaesu of tie ax htaernew district will not be held priorto the
signing of • development agmement. We recommend that the issues of establishing a tax increment district
and the City transfer of the City owned land be discussed at the May 13th City Council meeting to ensure that
the City Council will approve a tax increment district if the HRA signs a devekspment agreement with Mr.
v' Komarek prior to the end of June. Please call with any Questions or comments.
OFFICES res MUSILDPOLIS. UN AND GROCK ra►D, w1
2050 Nonven Center. 00 Boum Seventh Srraee . MUlnaapolia, MN $5402.4100
releplow 812-330•e291 . PAX 612.339.0654
Pr4b. W" F. iTob14. --1yo1 WAhommIt HM A..him -
W\
')
(PCOME
14101196 2ni!CIM
37096
4110190
IMON/
2ri00D7
3@40197
4610197
Isgi96
2ri00196
3@00196
470191
1.10199
2140199101-A
/wool Ura
x
x
2
2
0
2
1
2
x
Z
7 -- it
D.
Two S"gr.d
0
4
4
a
Mixiber d Urb Sold
7
2
2
2
4
2
x
4
2
2
2
3 29
Salm d SeKho0od (LOAwls - 11641)
312,000
317,OOo
712,000
312A00
0
312.000
312.01)0
0
317.000
312.000
312.01)1)
466.000 3,270.000
S/. o1AWn (Qrda • 11321)
0
O
0
0
626,000
O
0
371,000
0
0
0
0 1.0S6,000
19U1 Reir4n015TT1
01
_ _ __
TOTAL 1A ES _
_ _ _ _
0 0
_ _
]12�OOD
717.000 ]12,005
J17i000
576,000
3123000_-31-1100
_
�1000�
]11,000,312,000 _
312,000_
46!,000 4,]77,000;
0@PE WSWN76_
0'
lmd aoc PraYY YY.at--------
----m.91a
X0.63]
--m.u]
10.911
70.633-
-m,633--
— - -
--
-
- -
— - - 154.99!
'Lrid Pmt • TIF x411.
190,000
190,nw
Land Prot. - city P.Mny
31,600
34.600
Surmy rid PLmftN
7.000
13.Do0
IaA00
OrMI1m
10.000
10.000.
rr
SIN RO.bbn
2,600
7.owl
lartlaa0649
�.4!
4.000
4.000
4,000
4,000
6,000
4.000
4,000
1,000
4.000
4.0 00
4,000
6.D00 55.000.
114161.
:oljrs.Oga AblilWdon
1.260
9,316
109351
JU4W
13,160
48100
3D=
91.750'
3. C.0 -t—
1.1
13.700
16.600
3D.5M
.40a1 F...
6.000
6,0011
P-011 0~ a 0.y4Nfr1.N
15.000
15,000
w,000
D—kx.d 119 Sub6.w
9.wa1.4m4 Corr1 Coal
240.000
140.000
70,1110
240.000
740,000
240,000
740.000
70,0110
240.000
100,000 7.520,000
Av-Cmn Co.l
4w,000
430500_
aw'D00
I OTAL OLIAN 1 CRL3@ Oil /IAV
241,-607-311`491
776,Oq
�w 70!
3>O,/ti1
.o6. &3]
S(M,u7
244,006—AA
I1D
%7.000
74.000
7w,000_]OB.00O
4,n4�h, st
01TAFVERLV GROSS PXOY6
(246.600)
00.463)
35.607
1/,792
(72.733)
50.167
1,167
61,000
90.000
16.000
61,000
46,001)
103.000 211.317
GROSS RCI URN ON COSI
6 61%
Nf4nca1 Cop )101.)
0
6,713
1.320
6,096
1,514
7,713
6.Wh
/,069
5,600
4,131
7,114
1 W
0 62,545
BM.ra 619,)
0
0,600
9.600
00
0.0.0
16 0
17,7 05
9,600
9.000
1r,700
9.600
9.600
9 711
14100 135.700
OUAAI CRI V MET 41COME
(246,600)
(46.xM)
14,037
MIN
(43.047)
34,254
(9•x11)
51,311
61.97
54.261
66.621
67.011
67.600 09,777
RLI RETURN ON COSI
T 0654
-OAw 64 ANCL
—xY,E00
704,790
ITS—"
754,663
306,510
27,73@_203,545
x32.794
195,240
110,111
5.15345
0
N
pR
OI
ovr*w aIWW d 4 Ptk&.Pff mm P.D. I
Rae1a wed F.U.. /dp. tdn NRA AW.W—
Incom
IatOR9 7MD9e
3mxma
Oaf"
IOG197
2r4OM7
YdOISI_
411$0107
LOOM 2200155
1rd01i
NOlee
121069
L1dOB9 TOTAL
li—b" um
-- --
2
2
2
2
0
2
1
7
2
7
3 21
iT.10 "a Qd
0
4
4
e
1Mnder d Uta Sotl
2
7
2
2
4
2
2
4
2
2
2
3 2s
iSaim d Snd-wd4( d -ft $15010
712000
712,000
312000
312AM
0
MOM
)12,000
O
3124110
712400
312400
485,000 7276.000
'Sdea/Aa54a(dWa-$1220
0
0
0
0
X6.000
0
0
570,000
0
0
0
0 1.066,000
NRAR4af6va~
)1,600}0000
20400
77,500
07,600 188600
70TK SALES_
0 51,600
W.000
772000
712_000.
])}0000000 _675,000
712,000
135,600
67y000
JI ,0003-1i.—M631000_5765110
Iy601,60D
DISPEASMENT9
0
Land P106-Prat0l Vl"
30"
SOA37
3OA33
70A17—
30A
30.5)2L
ata Pros - T6 lar
190.000
150.000
land Prot. - GAY P am IV
71,600
71.600
Sural am P1adq
7,000
17000
t0A00
Ganld4wa
to.00D
0,ON
Sae Redaleon
towt,am
12^022769
4.000
4,000
4.000
4,000
5.000
4,000
4.000
SAW
4,0 00
..000
4,000
5,000 5e,000
PrM4Y U14eea
Err.' V 4 AdrMmdlan
1,280
9,376
10,576
.U1464a
17,450
49.100
30,000
91.250
SI.0 ContuclM6
13,700
15.1DO
30,600
L.9d F-6.000
a.ODD
Pr21a0 D.W 4 05. relaMNW
16.000
10.000
30,000,
D—Mp.d Lm 516u.1
95.0..2 d Cond. Cod
240.000
240,000
240.000
24D,000
240,000
240400
240.000
240,000
740,000
300,000 2.510.0001
Aapa Gaal Cal
430,000
430,000
580,0007
TOTK _QIUW7ERIV OUTL A�--_---71
500
317.46.1
776007
_ 7M1i0e_
7]5,717
_ IaE��])
3(N07)
2W000
4]l OU12
-_741,000
_
640000
306,000 iON,4a7.
QUARTERLY GROSS INCOME
(2N,QQo)
emeA
36.007
27,712
(279»
69.191
7.167
95.500
$0.000
"Am
56.000
60.000
109.600 454.617
GROSS RE Tl1RM ON GIST
0055%
h4 .lc-1410%)
0
0,350
5,965
5.471
5.100
6,122
4,610
4,997
2.976
1,725
0
0
0 41,111
eraa.a (4%)
0
9.000
9.600
Gam
6.000
17.200
6500
9,600
172W
tem
9.000
6500
14,400 171 20D
QUARIERLY MET 000061E
1214,000)
(25,177)
20.721
12714
p1,457)
29.144
(7.2491
60.907
00.026
67.111
44,4W
54.400
156.100 271,44
NLI RETURN ON COST
64616
'l CAN 0Al M1CC — — _--
----7!,000
2,9477
719,117
- M,3%
_ 1„151
102Aa
190,455
Ilam
fo,fo7
0
0-
0_
0_
0
P4ap2N%wpk6k.WCm a P45e1
APR 29 '96 12117PM EHLERS S. ASSOCIATES
P.5/6
ouss9s uaero mM m0 D-1" Um .1 s Pi t naawwbPlw Omrmn
T.I.F. CASH FLOW ASSUMPTIONS
tramon Rate:
0.000o%
Interest RW:
8.600%
Tu Edonslon Ran:
1.117090 Pay 96
FlUY DhpanL= RNA:
0.00%
BASE VALUX INFORMATION
Par 90
VAa»
Pnam>•1 *1554000xao5
105.000
PAroN e155400.031/O1
55,600
Paco 1MG&MC1433402
4
Tata OAplml alaraat VaW
._._.�•
Cnu Rata: NaniattaaA 172000
3.0000% Pot, 95
1101111lJttaaO 62000
1.0000% Par 95
0" Tot CAPmD'
IA" Pay95
PROJECT VALUE INFORMATION
Trp* of Ta. amo1m111N11 Drum=
WOa+aalpnlmm
Typo of DerNopmant
11on1aaDnA
Toto Ulmer
Type of Tool TmW
Taw ►than ►WON
Tam... ULq Com.._.
Valuer Params
_SIN
1.5 - Fomaplm amp (5 urds) 12010 2.101
_ .Yoe
1 filo 700.000 130,000
2 - Tmwnoomas (A Under) 10.106 2M0
0.110 600500 160.000
0 0
0 0 0
22AOS
20.400 1.760.000 280,000 1000 0 2000
Aaaumaa 50% by In 1997 ana 507 kA n IM
A
uriao.01 wmuras w DaaaPUam na RR1
APR 29 '% 12:17PM DA -ERS 8 ASSOCIATES
P.6V6
"/26M
1 --ft KVA 10 D." V7) ,a • v,aa4.-
R•p...Ippiwl
OO
v4:4 2
TAX MCREMENT CASH FLOW
ON
Pto)W
Captvnb
S -kA,." AAmingsVO
a
00a
Sm Arn W
NPV
_
PBYMVM
SR100
Ta
Tu
Ta
Gmu I"
Fay
Rawles
NM Tu
Tu twern9N D"
Y7).
Capacity
CaprAy
cap-ty
_MKT --4
-1000%
Inas 1
8.50%
Mtn. V_y
0.0
1,673
1,673
0
0
0
0
0
0
02-01 1697
0.0
1.673
1.a77
0
0
0
0
0
0
08-01 19"
0.0
1,673
1,673
0
0
0
0
0
0
02-01 ,p"
O S
1,673
1,473
0
0
0
0
0
0
01W 19"
1.0
1,673
1,673
0
0
0
0
0
0
02-0, 1999
1.5
1,673
10,200
8.527
•,798
(477)
0
4,290
3.342
Oa -01 109
2.0
1.an
10.200
8.527
4.766
477)
0
•,290
6.547
02-01 2000
2.5
1.673
20.40
,6.727
10.•67
(1.0473
0
9621
13.300
04-07 200
s 0
1.673
20.400
10.727
10.467
(1,047)
0
9,42,
,9,777
02-0,1 2001
3.5
1.673
20.400
,6.727
,0A07
(1.047)
0
9.421
25.990
08-0+ 2001
4.0
1.673
20.400
IS* 72;
10.467
(1,047)
0
9.42,
31,950
02-01 2002
4.5
1,673
20.400
ta.727
10,497
(1,047)
0
9.421
37.667
08-01 2D02
5 0
,,673
20.400
+:.rn
10.467
(1.047)
0
9.421
•3.161
02-01 2003
5.5
1,673
20,4DD
16.727
10.467
(1.067)
0
9.42,
48.411
08-01 2003
1.673
20.400
16727
10,497
(1.047)
0
9.421
53.457
02-01 200
i6.0
6.5
1,473
20.40
16.rn
10.467
(1,047)
0
9. 42,
58.297
084 2004
7.0
7.673
20.400
16.727
0.467
11.0471
0
'.,421
62.90
02.01 2005
7.5
1,673
20.•00
,6.727
10467
1+.047)
0
9,421
07,394
06.0, 2005
00
1.873
20.400
1e.n7
1047
(1,0.7)
0
9.421
71.666
02-01 2006
9.5
1,673
20.400
tern
10467
(1.047)
0
9,421
7:.794
080, 2000
9.0
1,673
20.400
1:.727
10.407
(1,047)
0
9.421
76,695
02.0 2007
9.5
1.673
20.40
tern
10.47
(1.047)
0
9.421
83.465
004 2007
10.0
,.673
20,400
,6.721
,0.467
(1.047)
0
9.421
87,Oa2
02-01 2004
105
14)7
20.400
16.727
10,47
(1147)
0
9.4x1
90.351
0601 2008
11.0
,.673
20,400
e,rn
10,457
(1.0471
0
9.421
93.879
02-01 2009
115
1,673
20.400
16.727
10,467
(+.047)
0
9.421
87.072
0801 2009
12.0
1.673
20.40
1:.727
,0,•67
(1.0471
0
9.421
100.,}1
02-0,1 2010
12.5
1,873
20.400
18.127
10.47
(1 047)
0
9.47,
10307+
0641 20,0
13 0
1,673
20.400
14727
0.47
1. 047)
0
9.421
105.889
02-01 2011
13.6
1.673
20,00
16.727
10.47
(1047)
0
9,421
108.591
08-01 2011
+40
1.673
20,•00
7:,721
10,47
11.047)
0
9,421
11,.Ia.
02-01 2012
+4.5
1,673
20.40
18,727
10,47
11.047)
0
9.421
117,:71
0801 2012
150
1,673
20,•0
18.777
,047
(+,047)
0
9.•21
116.056
02-0, 2017
".5
1.x73
20.400
,8.727
10.467
(1,04n
o
9.473
8.364
040/ 2017
ISO
1,673
20.400
18,721
10.47
1+.0471
0
9.471
,20.539
02-01 2014
16.5
,.673
20,40
,:,727
10.47
(1,047)
0
9421
122-"S
0841 2014
170
t,:n
2040
1:.727
10,47
(1.047)
0
9.42,
,24.664
02-0+ 2076
17 5
1,077
20,40
,:,727
10,467
(1,047)
0
9.121
126,602
084 2015
18.0
,,873
20.400
te727
10.47
(1,047)
0
9,•21
,284:0
02-01 2016
18.5
1,673
20,400
U, 727
10,47
(1.047)
0
9,621
130.242
08-0+ 2016
,9.0
1.673
20,40
,6,777
,047
(1.47)
0
942+
+31.952
0201 2017
+95
1,673
70,400
16.727
,0.47
(1.047)
0
9.421
137,592
x801 2x17
200
1.673
20,400
10,771
+0.467
(1,047)
0
9,421
gS.186
020, 2018
20.01
1.:73
1.1
Ie.771
+0.47
(1,047)
0
9,421
136,675
0841 2016
2, 0
,.673
zD.400
,6.727
MAA
(tw)
0
9,471
138.,23
02-0, 20,:
2, 5
,,.73
20,400
18.727
10.47
(1,47)
0
9.421
179.51+
0441 2019
220
1.673
70.430
18.727
10.47
(1,047)
0
9,421
140.843
0241 2020
22.5
1.673
20400
,6.727
10.47
(+.067)
0
9,671
142.121
00-01 2020
230
1,.13
20,40
16.727
10.47
(t,W7)
0
9,421
143.0
02.0, 707+
23.5
1.173
20.400
,..727
,0.47
(+.a7)
0
9.42,
1".522
0841 2021
24.0
1,.73
20.00
1..727
10,47
1.0471
0
:.42,
1.5.690
0241 2022
24.5
1.673
20.400
+8.727
1047
(1.047)
0
9.42
146.732
064+ 2022
250
ten
20.400
15.727
10.47
(,4747)
0
9,421
_147,76p
02.01 2023 ,
Totw
_
- �o+ , _ ---•- --•
(49,107)
0
"1.g2j
-
P,"W4 Va444
164.1"
(10.4191 Q
+0.749
.710961 P.W4a ar a, w-.. -sa IM 907
C
PRELIMINARY AGREEMENT
THIS AGREEMENT, dated this day of , 19_
by and between the Housing and Redevelopment Authority in and for
the City of Monticello, Minnesota ("HRA"), a Minnesota public body
corporate and politic and a
Minnesota ("Developer"):
WITNESSETH:
WHEREAS, the HRA desires to promote development of an area in
the City (legally described in Exhibit A attached hereto) located
at ("Property"); and
WHEREAS, the Developer has submitted a preliminary proposal
for development of the Property ("Development"), a copy of which
proposal is attached hereto as Exhibit B; and
WHEREAS, the Developer has requested the HRA to explore the
use of tax increment financing (TIF) to offset a portion of the
Development costs; and
WHEREAS, the HRA and Developer are willing and desirous to
undertake the Development if (i) a satisfactory agreement can be
reached regarding the HRAs commitment for public coats necessary
for the Development; (ii) satisfactory mortgage and equity
financing for the Development can be secured by Developer; and
(iii) the economic feasibility and soundness of the Development and
other necessary preconditions have been determined to the
satisfaction of the parties; and
WHEREAS, the HRA is willing to evaluate the Development and
work toward all necessary agreementa with Developer if Developer
agrees to reimburse the HRA for its costs if the Development is
MUM
iu►ae•2 1
abandoned or necessary agreements are not reached under the terms
of this Agreement.
NOW, THEREFORE, in consideration of the foregoing and of the
mutual covenants and obligations set forth herein, the parties
agree as follows:
1. Negotiations between the parties shall proceed in an
attempt to formulate a definitive development contract ("Contract")
based on the following:
(a) Developer's current proposal which shows the scope of the
proposed Development in its latest form as of the date of
this Agreement, together with any changes or
modifications required by the HRA;
(b) a mutually satisfactory Contract to be negotiated and
agreed upon in accordance with negotiations contemplated
by this Agreement;
(c) such documentation regarding economic feasibility of the
Project as the HRA may wish to undertake during the term
of this Agreement; and
(d) other terms and conditions of this Agreement.
2. It is the intention of the parties that this Agreement
(a) documents the present understanding and commitments of the
parties and (b) will lead to negotiation and execution of a
mutually satisfactory Contract for the Development prior to the
termination date of this Agreement. The Contract (together with
any other agreements entered into between the parties hereto
contemporaneously therewith) when executed, will supersede all
obligations of the parties hereunder.
3. During the term of this Agreement, Developer agrees to:
(a) Submit to the HM a design proposal to be approved by the
HRA showing the location, size, and nature of the
proposed Development, including floor layouts,
renderings, elevations, and other graphic or written
explanations of the Development. The design proposal
shall be accompanied by a proposed schedule for the
starting and completion of all phases of Development.
The Development shall be designed to accommodate public
facilities to be constructed adjacent to, or as part, of
the Development.
(b) Submit an over-all cost estimate for the design and
construction of the Development.
aroao2
ia:ofa 2
(c) Submit a time schedule for all phases of the Development.
+ (d) Undertake and obtain such other preliminary economic
feasibility studies, income and expense projections and
such other economic information as the Developer may
desire to further confirm the economic feasibility and
soundness of the Development.
(e) Submit to the HRA the Developer's financing plan showing
that the proposed Development is financially feasible.
(f) Furnish satisfactory financial data to the HRA evidencing
Developer's ability to undertake the Development.
4. During the term of this Agreement, the HRA agrees to:
(a) Take all actions necessary to create a Project Area (if
necessary) and Plan therefor, and a Tax Increment
Financing District ("TIF District") and Tax Increment
Financing Plan ("TIF Plan") therefor, in accordance with
Minn. Stet. Sections 469.174 through 469.179.
(b) Proceed to seek all necessary information with regard to
the anticipated public costs associated with the
Development.
(c) Estimate the HRA's level and method of financial
participation in the Development and develop a financial
plan for the HRA's participation.
9. It is expressly understood that execution and
implementation of a Contract shall be subject to:
(a) A determination by the HRA that its undertakings are
feasible based on (i) the projected tax increment
revenues and any other revenues designated by the HRA;
(ii) the purposes and objectives of the Plan and TIF
Plan; and (iii) the best interest of the HRA.
(b) A determination by Developer that the Development Is
feasible and in the best interests of Developer.
(c) Execution of the Contract by the parties.
6. The Developer hereby grants and conveys to the HRA and
its agents, its and their successors and assigns, an easement over
and upon the Property for the purpose of ingress and egress and for
conducting such teats or collecting such data as may be reasonably
necessary to determine the feasibility of the Development. The
easement shall terminate upon execution of a Contract or
termination of this Agreement in accordance with the terms of this
Agreement, whichever occurs first.
JU22452
Pat" -3 3
7. This Agreement is effective for a term ending days
from its date, unless extended by mutual agreement of the parties.
If for any reason a Contract is not negotiated and executed within
the term of this Agreement or any mutually approved extension
thereof, the Developer shall reimburse the HAA for all costs
reasonably expended by the HRA in regard to the Development.
8. In order to secure payment of the costs incurred by the
HRA in regard to the Development, the Developer shall deliver to
the HRA cash or a letter of credit in the amount of $
The letter of credit shall be in form satisfactory to the HRA.
The cash or letter of credit shall be delivered by the Developer to
the HRA within days of the date of this Agreement. The
letter of credit shall be valid for a minimum of months from
the date of this Agreement. If while determining the feasibility
of the Project the HRA determines that its expenses will exceed the
amount of the deposit and that additional security is required, the
HRA shall notify the Developer of the amount of such additional
security. The HRA may terminate this Agreement in the event that
such additional security is not delivered with such period. Within
ten calendar days of receipt of said notice, the Developer shall
deliver to the HRA the required additional security. If necessary
in order to ensure that the HRA possesses sufficient financial
security at all times prior to completion of the Project, the
Developer shall renew or extend the letter of credit. Upon receipt
of written demand from the HRA for reimbursement of its costs, the
Developer shall remit payment to the HRA within ten days. If the
Developer fails to make the payment within the specified period of
time, the HRA shall utilize the cash or letter of credit to
reimburse itself.
9. This Agreement may be terminated upon 30 days' written
notice by the HRA to Developer if:
(a) an essential precondition to the execution of a contract
cannot be met; or
(b) an impasse has been reached in the negotiation of any
material term or condition of this Agreement.
If the HRA termintes the Agreement under this Section 9, Developer
shall remain liable to the HRA under Sections 7 and 8 herein for
coats reasonably incurred by the HRA through the date of
termination.
10. The HRA agrees that it will not solicit proposals for
development of the Property from others during the time that this
Agreement is in effect.
11. In the event that the Developer, its heirs, successors or
assigns, fail to comply with any of the provisions of this
Agreement, the HRA may proceed to enforce this Agreement by
appropriate legal or equitable proceedings, or other similar
proceedings, and the Developer, its heirs, successors or assigns,
JU::Jl7
10111.7
agree to pay all costs of such enforcement, including reasonable
j attorneys fees.
12. If any portion of this Agreement is held invalid by a
court of competent jurisdiction, such decision shall not affect the
validity of any remaining portion of the Agreement.
13. In the event any covenant contained in this Agreement
should be breached by one party and subsequently waived by another
party, such waiver shall be limited to the particular breach so
waived and shall not be deemed to waive any other concurrent,
previous or subsequent breach.
14. Notice or demand or other communication between or among
the parties shall be sufficiently given if sent by mail, postage
prepaid, return receipt requested or delivered personally:
(a) As to the HRA:
(b) As to the Developers
15. This Agreement may be executed simultaneously in any
number counterparts, all of which shall constitute one and the same
instrument.
IN WITNESS WHEREOF, THE HRA has caused this Agreement to be
duly executed in its name and behalf and its seal to be duly
affixed hereto and the Developer has caused this Agreement to be
duly executed as of the day and year first above written.
DEVELOPER: HRA:
Its Its
Its Its
a=au2
ia:w-a 5
STATE OF MINNESOTA )
ss
I►- COUNTY OF )
The foregoing instrument was acknowledged before me this
day of , 1991, by and ,
the Chairperson and Executive Director of the Housing and
Redevelopment Authority in and for the City of Monticello.
Notary Public
STATE OF MINNESOTA )
)as
COUNTY OF )
The foregoing instrument was acknowledged before me this
day of , 1991, by and ,
the and of ,
a corporation, on behalf of the corporation.
1 Notary Public
THIS INSTRUMENT WAS DRAFTED BY:
HOLMES 6 GRAVEN, CHARTERED
470 Pillsbury Center
Minneapolis, NN 53402
(6 12) 337-9300
ago»u�
�ai�a 6
HRA AGENDA
MAY 1, 1996
t �1 .4YIt1 t 1.
A. Reference and Background.
Appraisal
As per the completed appraisal, John Farrell appraised the Katzmarek property at
$70,(X)0. Please review for discussion.
Purchase Agreement
Enclosed as per the request of the HRA is a copy of the purchase agreement
between Katzmarek and Komerak for $I45,(XX) contingent upon approval of the
HRA of buyer's use of the adjoining property.
Via a conference telephone call between Bubul, Larson. Barger, Komerak, and
Koropchak; Komerak was directed to move forward in an attempt to obtain a
purchase agreement on the Katzmarek property for an amount not -to -exceed
$150,M)($I((),M) for property and $50.000for relocation costs.)
After completion of the appraisal, the purchase price appears somewhat high. If the
HRA can justify the $145,0(X) purchase price after consideration of the land
acquisition and potential relocation costs, the potential legal and relocation
consultant fees and the non -tangibles (negative public comments of the eminent
domain, the protection and safety of individuals, and the good -faith effort by
Komerak. )
If the HRA elects to acquire the 14(X1 West Broadway, it is my understanding the
HRA's intent was to assign the purchase agreement to the City for redevelopment
of a blighted property to green space.
B. Alternative Action.
A motion authorizing the acquisition of the 14(X1 West Broadway property in
the amount of $145,(XX).
2. A motion to deny authorization to acquire the 14(X) West Broadway property.
3. A motion to table any action.
Page I
HRA AGENDA
MAY 1, 1996
C. Recommendation.
Staff and counsel feels the $145,000 is substantially above the appraised value even
with the associated add-on costs and non -tangible benefits. Attorney Bubul will be
present for additional advise.
D. SU=rtina Data.
Copy of the appraisal and purchase agreement.
r
L
C. Page 2
�•• 1'•'rs _— W I I ITE, l III—(',qv
1,11111'It 11 VINC., S'CANDARD yh:IJd)W.Duyer.Cp„
M,n,w.,h. MN
Irl N11T IYII•Y ORF.h:N .9elkrY ('rpv
PURCHASE AGREEMENT PINKNurn.Recript
Monticello Minnesota March 29 18 %
RECENED OF John Komarek
the sum of Five Thousand and 00/100 ----------- --------------- Dollars (s 5,000.On )
by char•k as earnest money to be deposited the nerd business day after atxeptonce in trust account of listing broker
(unless otherwise specified in whiting) and in pen payment for the purchase of the premises legally described as
per copy of Warranty Deed attached 11/17/81
located at (Street Address) bustoar! 1400 West Broadway
City of Monticello ,County at Wrlltht , Stale ofMinnesota.
' including all plants, shrubs and trees, all storm windows and/or inserts. storm doors, screens, awnings• window shades, blinds, curtain -
traverse -drapery rods, attached lighting fixtureswith bulbs, plumbing fixtures, water heater, heating system, humidifier, central air conditioning,
electronic air filter, automatic garage door opener with controls, water softener, cable television outlets and cabling. BUILT-INS to include.
dishwasher, garbage disposal, trash compacta, ovorysl. cooklap stove• microwave oven. hood -fan, intercom, installed carpeting. IF ANY,
located on the premises which are the property of Seller and also the following personal property: None
+ all of which property Seller has this clay sold to Buyer for the sum of: 9 $145,000.00
V One Hundred Forty-five Thousand and 00/100--------------------------- --- Dollars,
I.,
. ' which Buyer agrees to pay in the following manner: Earnest money of 6 5.000.00 and
g 140, 000.00 . ash on or before 6/30/96 the date of dosing.
of a XX1U(%%XXXXl1XXXXXRXXX)( X
1. Property is sold in an "AS IS" condition.
2. Contingent upon approval of Monticello Housing and Redevelopment Authority
of Buyer's use of adjoining properties.
Anaclnd as addendums which are made a pan of this agreemenl.
SUBJECT TO performance by Buyer. Seller agrees to exer•ule and deliver e . Unrestricted Warranty Deed•
to be joined in by spouse, if end, conveying marketable title to the premises subject only to the following exceptions:
(1) Building arid roningtaws, ordinances,Saloand Federal regutalrlms.(2) Restrictions,elatirgtouse orimfirovernemofthe premises wilhoul
effecliveforfenureprovision .f3) Reservatiwtofany minerals ormineralrights
toIlia Slate
ofMinnesota.l4) Utility and drainage easements
which Ito not interface with present improvements. (5) Rights of le nacos. if any.
REAL ESTATE TAXES Solicit agrees Io pay 8_ / 12ths and Buyer agrees to pay 4 / 12ths of taxes due end payable In the year
19 1-6 . Seller agrees to pay 1_ / 121hs and Buyer agrees to pray —0_- / 12ths of annual installment of special assessments due
and payable in the year 18 96, Seller agrees to _Lay— on Ilio dole o1 closing all special assessments levied and lending.
Buyer shall pay taxes due and payable in the year 19 27tioNxtist, tpiaMt ., , ,. .. tpeeYskantseptahsilaw l Ittasyrilkr
XM93 leoaaltQLSeller warrants that taxes due and payable in the year 19 9 7 _ will be non lemastead
classification. Neither Seller nor Sohm's Agent makes any representation concerning the amount of future real estate taxes.
WARRANTIES Seller wmranis that brdkdings. it any. are entirety within the brwmdary lines of the premises Seller warrants flat all
atpliances• healing end air carlitioning, wit Ing and pll"nblrg treed and lucmml on tire premises aro In proper working nyder on date of closing
Dwyer las right toinslecllromrsespwimtoctosing Buyer shall satisfy himself /hat self at his/her expense that all appliati es, Ienting cowl au
conditioning, wiring and plumbing aro m proper waking odor heloro closing Seller warrants that Ila lr emises are connected In city sewer
fJ yes • m no: city water CT yes • M no It Ila premtarfs are destroyed or substantially damaged by fire at mry other cause before Ila
climing date, this agreement shall bocane null and void al Bum's olaio n, and ilia earnest money shall be refunded to Buyer.
POSSESSION Seller agroes to deliver possession not Into than drite of closing,
All frnorest, city W7fllAr anisewTr dlorges, cleat icily and natur at gas charges. fire, nip andliquk111otioloum gas shell be pro. rated between tie
parties as of a C l n Seller agrees to remove all debris and all personal property not inclimkd herein from dho
premises before possession date
TITLE & EXAMINATION Seller shall, within o reasonable lime after acceptance of thre oeomont• furnish an Abstract of Title. or a
Registered Properly Alhsnact. certified Iodate a lncthhln Irapa searches covering bankrujdces,grloteond Federal judgments and pians Otwei
ahtnhl bo nllowod 101wtsutess Ifayu nflnr rncerpt lor ernnnnatinm 0 title and making any ol>looions, which shall be rade in writing or deemed
-awed It any objection is so mndu. Seller shall be othwvor1120 days to make tido marketrnhrle. Pending correction of title. Mencius haraundm
rerjuinnd shall be postponed, but upon correction of tine Brod wnpun 10 days after winion notice to Buyer, the parties shall perform this
agreement according to its forms If title is not corrcctedwuhin 120 days from the dteof wrritton objnsction, Ibis ooppteonenI ahalh bo null and
void, at option of Buyer, neither party shalt bre bWde for damages hofoundm to aha other• and earnest moray shall be refunded to Buyer
DEFAULT 11 title is narkembte or is corrected within said time. aril Bu or defauhs in any of lite agnaamonts heroin. Seller may lmminau this
nip eornnnt, mrd on such lot initiation all frryments male lermlnckr shall l in ri nmmd IN Seller and Agent. as it air respective interests may niMenr,
ashghtrl.unlMntnpns, Imo timing of the essmheo hmoril Thislrrvkrnshall rug delrnoofOhec party of Ihenght of mtforcing Olin specific porfamnncce
of this ago cement, pr evidml this agioem sol is net per minated and anion In enfa cc specific porter mance is canrnonced within six months after
suchnightofaehonmises In l he event Ouyor defaiins In his pat for mnnce of the terms of l his Agroemont, and Not of Canceilahon is
set yet I upon the Buyer pu i suant to MSA 559 2 1. the termination pat red shall be Iho ty (30) days as pot mitted by Subdivision 4 of MSA
559 2t
' ACCEPTANCE Buyer understands and agrees tial this sato is subject to accelnm ice by Sollor in whiling. Agent is not liable or rosflonslble
on account of this agreamem• except to return or account for live earnest money
AGENCY DISCLOGURE s11p ulatn he or sM to nlrnsannng the
In Ilds transaction, The baling agsnl or broker stipulates he or slla Is roprosanting that safer In this Iransacgorr.
I, the owner of ilia promises, accept this agreement and l ogee to iur the mises for I ke andon the t n and
the solo hereby merle. conditions sap lord
r SELLER W �1SL� BUYER
R0 art J. KillizonPok V John Komarek
1.1 SELLER BUYER
Delivery of all pelma and met do shall bo made at the alike of; 1.0"A4.0,
Company METCALF. LARSON 6 MUTH Selling Agent -
Address Montltello,, MN 55362 City zip
03,28,96 11148 E 612 870 2943 CEDRUS CRK CONST P,01
R'�RRlgl'�pG:U f .1: •� :' •►arm Ne.! .t•.1 ,f'ei , "'i w,ie or_wu iii (" '•
I
11L.qurl to idol Troou• Y to Undone Con•rrrarint almt} G-" • '�'•y'' ^•
r• 'I '� ' eei ,1 ,
tax.I' ..i•Ut
Afad
n v`rryy�
ta4 l
HAKER' kTt idoW and'unromnrri' d f
, e ��.J...._�..., :. .. •,,?ipl i>�e oq cel. t ; IJI �',. h
_ ISI, a
o foe Counr o bakota. Minn nota _
J Y /•- and State of . par
o/the/trot part, ond� �DERT_J;d' 2�LAREK., . _divoreed•�Bn4� nU_ rema_rr_Iodi.' .'!�'t n .
_.... pF.iS.h.�.�. cosi Stott' MiOpeeoa dorlbl'0� i ieoond part,',+.
..
WUntacth,' That he sold url....Y..........o/ thS J1?at art n consideration 0J5 j. :
D llar'snd other • sod anc� valuable I:onei�erations--- r
sumoJ_i�E1Q_.....P........__.....__._...._.__._...................................._..._....._ _........._DOLLd&3,'.
to...11QS.......It, hand paid bt• oho said portico of the second part, the ricelpt wh �, of It hereby aoknowl=
edged, do 9M hersby Orant, Dorjaln;:Stll, and Conley unto the laid patift j;o/ the second pait`p�
I Joint tenants and not at tenants In corrtinon, their oosfins, the survivor oJsoll-partfee, and fhe �Slfia
1 and osslgns of the survivor, Forever, all the tract........ or parcel...__ o/ fond ng and been[ In' she
County o/.......... >s,iB�l.ti_._.._.._..__.._--and State of Minnesota, described as follows, to-uat:
Atract of land in Lot D of the South half of Section 3.,Township 121;;
Range 25 described as follows- Begin at the intersection; of the southorly
line of Trunk Ilighway No. 152 and the north line of IidJ'Lot B; thonce V7'
Southeasterly along the said southe ly line of Trunk Highway 152 a distance
of315 feet; thence deflect right P:,o for a distance of'2O5.7 feet to the
north line Great Northern railway right of way; thence Northwesterly along
suid railway righ' of way,-:_- a distance of 534.0 feet;;C:thence Easterly
to the point of beg.nning, containing 2.08 acres more or;lese. 1
(This Deed is given in fulfillment of that certain Contract for Deed dated
October 25, 1975 between the parties hereto,)
STATE DEED TAX DUE HEREON:$ 82.80 1
1 Real Estate Taxes to: ROBERT J. KAT7.MAREK t'
I Route,l;
Montidello, MN 55302
IIIinner.)(J�ii'��sp
Ilia r„• :lr
To Ilove and to hold the Same, Together ti ith all Ilia hereditaments and appu_rtu,onees
N, rrrunlu bM."01atr or In nnyuisr appertaining, to she raid parlirs of the seerind part, their onions,
the nrrrivor of sof/ pnrlies, orul (lie heirs and auioru of the nuvlvor, Forever, file suid parties of !ha
srco,ul part taking as joint ,omnis and not as lennats In voce rte on.
.lad the.aid........LEONA..A....BAh.kJt....a...w.i.tlow. nn.tl...cont.+ln.R1T.�.9.41.:::.................
............................................................................................................................................ !:1. _.............. .
of thr fent part, tot ......hersalf.,.-her._............ heirs, e.reeulote and adm(tits tiofori do.P� covenant
with the said parties o/ the eteond port, their onions, rhe survivor b/ said ponies, and the heirs and
assigns o/ the suroiror, that ......sh0...1.11:_........... uwellsrhed In/to ofthe fonds 4 qnd premises aforesaid,
and hall. food richt to tett anJ convoy the some In rrsanrlrr and/o nn afore pfd, and that the Barrie
are /rro train all InturnDranan,
ti.
i
And the above bargained and granted to. s and pre nvtses, In Cho quiet and pea gtie posesslon'L4''
Sold parties Of Cho second part, their of sj tee, the survivor of tali par In, a d, site and'd/t'
the Survivor, against all persons lawfil tyOulalming or to olalm IAB w of o� rt tAusoj,ri�s t
to InrurnDronoSs, 1/any, Attain before rl r►Cloned, tA• cold punt...-YEarl If N�f
and Defend. A
to Testimony. Wboleof, The Ala portJ........ of the first.., Unto
hand .........IAS day and year first abAS •written.
341., r
f
HRA AGENDA
l MAY 1. 1996
Consideration of an informational item relating to the process for establishment of
the storm sewer charge and the process used to inform developers.
A. Reference and Background.
This is a request of HRA Chairperson Larson. Larson request city staff or the city
engineer inform the commission or other commissions of the process and formual
used to establish the storm sewer charge and the process used to inform developers.
Assistant Administrator Jeff O'Neill or City Engineer Bret Weiss will be at the HRA
responding to the request.
C Page I
HRA AGENDA
MAY 1, 1996
At the City Council meeting of April 22, this agenda item was considered:
Consideration of a request to assist Post Office in establishing an additional access.
Enclosed is the agenda supplement and supporting data given the Councilmembers.
Although the Council minutes are not prepared, the Council approved Alternative
Action No. 2 requesting the HRA first attempt to enforce the provisions of their own
development agreement and re-establish the original 20 -foot easement from Locust
Street. 1 do not recall, if in addition, the Council indicated an interest in selling the
City property (the former Hass property.)
You may also refer to the HRA minutes of April 3, 1996.
I believe the HRA is familiar with the alternatives for action. Please consider the
request of the City Council.
C Page 1
Council Agenda - 4/22/96
> > • Vnnigideration of a request to assist Poet Office in nstahLghin$ an
additionsil access, (R.W.)
A RRFRRFNr.F AND BACKGROUND:
The City of Monticello owns the north half of Lots 1, 2, and 3, Block 50 (the
former Hass property), located north of Fred's Auto Repair and directly west
of the existing Post Office. The property borders on Linn Street. The
purpose of this agenda item is to find out whether the City of Monticello has
an interest in possibly selling this lot to the owner of the Post Office facility
to be used as an additional access point to their property.
While the request may sound simple, I will attempt to provide some
background information as to why this request is being made by the landlord
of the Post Office, Mr. Charles Ehlen of Cinco Corporation. As you may
recall, until recently the Post Office has had a second access off of Locust
Street to the Post Office property through the parking lot of the Metcalf and
Larson properties. Last fall, Metcalf and Larson blocked off the access when
their request for assistance from the Post Office or the landlord for help in
defraying the cost of maintaining the alley easement was denied. At the time
Metcalf and Larson had requested some assistance in maintenance cost, it
was brought to the City's attention that a 20 -ft easement was never recorded
against the property as originally planned, which the attorneys felt allowed
them to block off the access at their discretion. What becomes ironic is that
the 20 -ft easement through the Metcalf and Larson property was to be
supplied by them in exchange for the City releasing a 12-R easement that
crosses their property directly behind their existing buildings. The fact that
Metcalf and Larson failed to live up to their own agreement is now causing
the City to become involved in this dispute.
As additional background, before the Post Office was originally built, a 12 -ft
easement crossing the former Larry Flake vacant property abutting Locust
Street was provided to the City so that the Post Office site would have two
accesses, one off Locust Street and one off Broadway. This 12 -ft easement
access was used for a number of years until Metcalf and Larson proposed a
plan to build an office building on the corner of Locust and Broadway. As
part of their development plan, additional parking was necessary, and the
HRA became involved in acquiring and demolishing a home at the north end
of Lots 8, 9, and 10, so that Metcalf and Larson could build a larger building
on their property. In order to do so, tho City had intended to vacate the 12 -ft
easement that was originally used as access to the Post Office and relocate it
farther north in the middle of what would become Metcalf and Larson's
parking lot. The HRA spent approximately $32,000 to acquire and demolish
the property and resold it to Metcalf and Larson for $10,000 as part of a TIF
district. Metcalf and Larson were to provide the City with a new 20 -ft
Council Agenda - 4/22/96
dedicated recorded easement so that the Post Office would continue to have
two access points. As I noted earlier, because the developer failed to provide
a recordable easement, they are now blocking access to the Post Office site.
I believe originally Metcalf and Larson had hoped to receive some sort of
assistance from the Post Office or the Post Office building owner to help them
defray the cost of snow removal, sealcoating, and other maintenance in the
parking lot. The Post Office has indicated they did not feel it was their
responsibility to pay for any additional cost, as they were leasing the
property; and the building owner, likewise, did not feel it was their
responsibility to help pay for maintenance of an easement that was supposed
to be provided originally. The HRA has discussed this topic on a couple of
occasions and has yet to take any enforcement action against Metcalf and
Larson to provide the easement as originally proposed in a development
agreement. Instead, it has been suggested by Mr. Brad Larson and also
supported by the HRA that possibly the City of Monticello should sell,
donate, or whatever, our property on the west side of the Post Office so that a
second access could be provided to the west rather than through Metcalf and
Larson's property. While 1 agree that this could be a possible solution to the
problem by not only providing additional access but possibly additionally
parking for the Post Office, the Council needs to decide whether this is the
intended use of this property and, if so, the value you would like to receive
for this property.
The City of Monticello acquired the former Hass property a number of years
ago for approximately $46,000 plus demolition. While the property may not
be worth this as vacant property, if the Council is interested in offering the
property for sale to the Cinco Corporation, the owner of the Post Office
facility, we should probably obtain an appraisal to establish a fair price.
Recently, the Postmaster has indicated that the Postal Service is looking at
building a second facility near Burger King soon but will keep the present
location open for customer service. It's very possible that if this location
becomes a problem for them traffic -wise in the future, they may consider
relocating the entire Post Office facility to their property near Burger King
some day. In a related matter, it may be interesting to see what the
downtown revitalization study indicates will happen in the downtown area,
which might also include a possible site for a new Post Office in the future.
While I don't know if there are any plans for relocating in the downtown
area, it might be something that the committee will be looking at.
In order to keep their options open, Mr. Charles Ehlen of Cinco Corporation
did inquire as to whether the City of Monticello would be interested in selling
its property and for what price. I believe the landlord wants to keep the Post
Office as its tenant, although they did feel they had good traffic circulation in
Council Agenda - 4/22196
the past with the access where it was originally established. The Council will
have to decide whether you are interested in trying to find a solution to a
traffic problem by using our own property or whether we should simply insist
that the HRA re-establish the original 20 -ft easement through the Metcalf
and Larson parcels.
1.
If the Council is interested in selling the City parcel to the Cinco
Corporation, an appraisal should be obtained to establish the price.
�. e
r
Council could request that the HRA first attempt to enforce the
provisions of their own development agreement and re-establish the
original 20 -ft easement from Locust Street.
The City could decide to not sell its property at this time nor to request
that the HRA obtain the original easement and let the Post Office, its
landlord, and Metcalf and Larson deal with the issues.
C_ STAFF -RECOMMENDATION:
When the City originally acquired the Hass property, it was for the intent of
removing a blighted structure and for future redevelopment of the area. I
have always assumed that this property would eventually be either used
when the corner auto repair facility was redeveloped or possibly in
conjunction with an expansion of the Post Office facility. While the sale of
the property to the Post Office landlord may be a good solution for utilizing
this property, I've also questioned why the HRA is not willing to enforce their
own agreement and require Metcalf and Larson to provide and re-establish
the alley easement off of Locust Street. According to our records, the City of
Monticello has never vacated or sold the original 12 -ft strip of property
located directly behind Metcalf and Larson's back door. Although this
property falls a few feet short of providing access to the Post Office property,
possibly the City could look at turning over this strip of land to the Post
Office property owner to be used as a negotiating item to re-establish the
original 20 -ft easement. Regardless of the Council's decision, if there's an
interest in selling the City property, I would suggest the property be offered
for fair market value and an appraisal obtained before making any offer to
sell.
D. SUPPORTING DATA:
Sketch of Block 60; Various correspondence between Metcalf and Larson,
Post Office; HRA minutes and agendas relating to this topic in the past.
.1�
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Broadway
i
HRA AGENDA
APRIL 3. 1996
A
Jack Hutchinson. Local Postmaster, requested to be on the HRA agenda. Mr.
Hutchinson will update the HRA on the potential plans of the West Broadway postal
service and finure expansion plans. Additionally, he and Administrator Wolfsteller
request the HRA consider action to enforce the Development Contract between the
HRA and Metcalf & Larson as the area now poses an unsafe and hazardous
situation. Mr. Hutchinson was informed to contact the owner, Cinco Corporation,
to be present at the meeting. Brad Larson has been contacted of the April 3
meeting.
This issue has been reviewed by the HRA on numerous previous occasions. On
January 11, 1995, the HRA recommended Brad Larson address a letter to the Cinco
Corporation, owner, giving a 30 -day notice to close the driveway. The HRA's
objective was to encourage the two property owners to resolve the problem or for
Cinco Corporation to inquire to the City for purchase of the Old Hass property.
Within the 1983 Development Agreement between the HRA and Metcalf/Larson.
the developers agreed to file of record a twenty (20) foot wide easement for
purposes of ingress and egress in favor of the City of Monticello to be approved by
the City Attorney. NO record of the 20 foot easement exists. A letter dated
September 6 from Brad Larson indicated a willingness of the developer to file the
easement subject to the City entering into a Maintenance Agreement. The 1983
Development Contract has no provision relating to a Maintenance Agreement.
On September 6, 1995, the HRA passed a motion of a "wait and see approach".
Again, in hopes of encouraging the two property owners to revolve the issue of
maintaining the driveway access to Locust or to encourage Cinco Corporation to
contact the City of Monticello for consideration to purchase the old Hass property.
The HRA elected not to seek legal advise in September.
It appears the US Postal Service has on numerous occasions contacted the
Administmtor Wolfsteller, as previously the City promised the postal service access
to Locust Street. Normally, the HRA takes the position "a contract is contract" and
has stood behind the content of a contract. Attorney Bubul will attend the meeting
to advise the HRA.
Page I
ms
HRA AGENDA
APRIL 3. 1996
J
B. Alternative Action:
1. A motion to stand behind the HRA recommendation of January 11, blockage
of the driveway for purpose to encourage the two property owners to resolve
the issue. Wait and see approach.
2. A motion subject to the advise of Attorney Bubul for enforcement of the
Development Contract whereby the developer files a 20 -ft wide easement.
3. A motion subject to the advise of Attorney Bubul whereby the developer files
a 20 -ft wide easement and the HRA and developer enter into a Maintenance
Agreement.
4. A motion subject to the advise of Attorney Bubul whereby the developer files
a 20 -ft wide easement and the City consider providing a temporary driveway
through the old Hass property with an access to Linn Street.
5. A motion to table any action.
N
Without legal advise, staff has not offered a firm recommendation. HRA members
should keep in mind the potential of a new Redevelopment District and the
relationship between the pedestrian traffic created by the post office and the
activities of a successful community/riverfront development project.
D. $unlyng Data:
September 6 agenda, Development Contract, map of the area, letters and minutes
following.
Page 2
NRA AGENDA
SEPTEMBER 5. 1995
4. Consideration to review for further Airection the Develanment
Agreement between the HRA and Larson,NAtcaif relar.ing_to a 20
foot. as»arrant.
Reference and Rackgrnund_
Within the laer week Larson/Metcalf blocked off the access
from the Post Office to Locust Stroot. on January I1, 1995,
the HRA recommended Brad Larson addreRs a latter to the Cinco
Corporation (owner of tho post uffic.- building) giving a 30 -
day notice to close the driveway. The HRH's objective was t.o
oncourage the two property owners to resolve the problom or
for Cinco Corporation to inquire to the City for purchase of
the old Hass Property. (Sao onclosod letter of April 75,
1995.)
As Jeff O'Neill indicated at the January 11 meeting, the
public has the right -to -cross. Within the 1983 Orvelopmont
Agreement between the RRA and Laruon:MetcalI (the
"developers"), the developers agroed to filo of reoord a
twenty (20) fuot wide easoment for purposes of ingress and
agrees In favor of tho City of Mentis:+llo to ho approved by
rhw City Attorney. No record of the 20 foot. easement exisr». 0
Tho City does own a small strip of property to the north of
the Larson/Metcalf office building; however, the strip does
not run westerly to a point joining the property ownod by
Cinco Corporation.
Brad Larson has repeatedly reg;ueeted the HRA or City to
provide a temporary driveway for postal use with an access r"
Linn Street through the old Hass Property. Postmaster .Jack
Hutchinson has callod Administrator Wolfsteller stating the
City promised US Post Office an ingress and egress. Although
City Administration does support the MRA's recommendation and
objective, they do feel the public has the right -to -cross and
that the developers have not complied with the Dsvelopment
Agreement of October 31, 19A3.
Aftor discussion, the HRA may wish to conaidnr tho following
Alternatives.
Altprnativo Actions:
A motion to atand firmly behind HAA rncnmmondatinn rnf
January 11, encouraging the two property owners to
rosolve tho issue.
pAve I
//b
HRA AGE MA
SEPTEMBER 5, 1995
2. A motion to obtain legal advise relating to possible
enforcomont of the DovPlopment Agreement.
3. A motion for the HRA or City to provide. a temporary
driveway through the Hass proporty with an access to Linn
fit.rwgr..
4. A motion to take a "wait and see" approach.
C. Staff recommendation:
Tt appears the HRA and City has; bwPn the nub?nct for n, -t
resulvtng the iaaue. Staff supporta alternative, No. 2 or 4.
n. Supporting Data:
Development Agreemont, Map, and Letter of April P.S.
Page 2
/,r
I
l
l
I
DEVELOPMENT AGREEMENT
,r
THIS AGREEMENT, executed this I achy of October, 1983, by and between.
the yon.-icello Housing and Redevelopment Authority (hereinafter referred
to as "the HRA") and Bradley V. Larson and James G. Metcalf (hereinafter
referred to as "the developers") set out provisions for the disposition
of lands and the orderly development thereof in accordance with the
Central Monticello Redevelopment Plan. The HRA and the Developers do
hereby agree as follows:
THE DEVELOPERS AGREE:
1. That development of land and all buildings shall be in accordance
with this agreement, the Central Monticello Redevelopment Plan, and
01 all other applicable, municipal ordinances.
That for the purposes of establishing valuations for taxes payable,
the building and appurtenant facilities to be first constructed on
the following described real property, to -wit:
The Northeasterly Fifty Feet of Lots right, Nineasd Ten in Block
Fifty, of the Village of Monticello, according to the plat thereof
on file and of record in the Office of the Wright County Recorder,
which parcel may also be described as follows: Commencing at the
Northeasterly corner of Lot Ten, Blocs Fifty, Townsite of Monticello;
thence Southwesterly along the Easterly line of said Lot Ten a distance
of Fifty Feet; thence Westerly at a right angle to the last described
line across Lots Ten, Nine and Eight in said Block Fifty to the
Westerly line of Lot 8; thence Northeasterly along the Westerly line of
Lot Eight to the Northwesterly corner thereof; thence Easterly along the
Northerly line of Lots Eight, Nine and Ten to the point of beginning,
all in Block Fifty, Towmsite of Monticello.
That part of Lots 9 and 10, Block 50, Tomnsite of Monticello, described
as follows: Beginning at the SE-ly coiner of said int 10; thence NE-ly
along the SE-ly lime of said Lot 10, a distance of 102.84 feet to a line
parallel with and distant 82.00 feet SW-ly of, as measured at a right
angle to the NE-ly line of said Lot 9 and 10; thence NW-ly along said
parallel line, a distance of 40.21 feet to a line parallel with and
distant 7.00 feet NW-ly of, as measured at a right angle to the SE-ly line
of said Lot 9; thence SW-ly along said parallel line, a distance of 102.88
feet to the SW-ly line of said Lot 9; thence SE-ly along said SW-ly line and
the SW-ly line of said Lot 10, a distance of 40.20 feet to the point of
beginning.
shall be deemed to be totally complete and assessed as such as
of December 31, 1983.
3. Tha- in the event the Cour.-y Auditor or County Assessor will not
record evaluations for a complete bui:ding prior to its actually
be --:-.9 complete, Bradley V. Larson and James G. Metcalf will pay
to ERA the difference between the tart increment based upon the
par-lal building and the tax increme.nt based upon the completed
struc-ure.
//F
4. That in any year in which the tax increment generated by the
development does not meet or exceed the amount required by the
HRA to meet its debt retirement demands, the developers shall
pay directly to the HRA the difference between the actual tax
increment collected, and the required debt retirement payment,
said payment to be made no later than the 15th day of December
in the year in which the taxes are due and payable.
5. That they shall purchase from the HRA the following described
real property, to -wit:
The Northeasterly Fifty feet of Intl Eight, :Tine, and Ten, in Block
Fifty of the Village of Monticello, according to the plat thereof on
file and of record in the Office of the Register of Deeds in and for
said County.
on or before the 16th day of November, 1983, and they shall remit
payment in the sum of $10,000.00 to the HRA on the date of purchase.
6. That no "project land" acquired by the developers from the HRA
may be resold prior to improvements being made without the prior
written consent of the HRA.
7. That there shall be no discrimi nation on the basis of race, color,
sex, creed or national origin i n the sale, lease, transfer or
occupancy of the property covered by this agreement.
8. That the property shall be devoted only to the uses that fall within
the scope of the Central Monticello Redevelopment Plan for a perioe J
of twenty (20) years from the date of this agreement.
9. That, except where physically impossible, all public and private
utilities serving the parcels within this agreement shall be under-
ground.
10. Developers agree to file of record a twenty (20) foot wide easement
C for purposes of ingress and egress in favor of the City of Honticell y
to be approved by the City Attorney.
THE HRA AGREES:
1. That the HRA will convey to the Developer title to the following
described real property, to -wit:
The Northeasterly Fifty feet of Lots Eight, Nine, and Ten, in Block
Fifty of the Village o1 Monticello , according to the plat thereof on file
and of record in the Office of the Register of Deeds in and for said County.
on or before the 18th day of November, 1983, for the sum of $10,000.1
2. That, prior to the conveyance of title to the developers, the HRA
will demolish existing structures and generally prepare the site
for new construction.
-2—
// G
3. That they will provide a deed to the following described real
property, to -wit:
The Northeasterly Fifty feet of Lots Eight, Nine, and Ten, in Block
Fifty of the Village of Monticello, according to the plat thereof
on file and of record in the Office of the Register of Deeds in and
for said County.
4. That for all sales of land referred to herein, the cost is the
total cost. No existing special assessments shall be transferred
to the developers, unless the developers request such transfer.
The BRA further agrees that when the price agreed upon herein
is paid by the developers to the HRA, the title to the parcel
will be transferred free of all encumbrances.
FOR THE HRA FOR TH�EVELOPERS
A1�A9h to �7 Ar dley L on 4;
LaC!!1 A
Thomas A. Eidem" am G. Metcalf
This day of November, 1981.
Notary Public '
WGUWPUW A
OOLD"
ISMON"Wamnim
5EII
nlelca� & Xa,jon
AT'T'ORNEYS AT LAW
M. GM u!
3131 wM emw-av
momctllm wm ems 553U444
JAMES G. METCALF TELEPHONE
BRADLEY VLARSON (81Z M232
April 25, 1995 Tao
(61Z 421.3m
FAX
(d1A 2MIJZ
Cinco Corporation
P. O. Box 185
St. Cloud, Minnesota 56302-1185
Gentlemen:
Please be advised that we are the adjoining land owners to
the east of the post office. I believe you own the building and
rent to the United State Post Office depart=ment.
Over the years we have had some discussion with your
predecessors in title with regard to the driveway that your
patron's use through our parking lot. In the past there has been
no desire on the part of you or your tenants to participate in the
cost of maintaining the driveway which exists primarily for your
benefit. Therefore, we are putting you on notice that on August
1, 1995, the drive will. be terminated at our common boundary lines
unless, prior to that time, you contact us and we reach an accord
with regard to future sharing of expenses with regard to the
driveway and its maintenance.
Respectfully yours,
RETCALF S LARSON By:4:� v.
Bradley V. LgTson, Esq.
BVL/gls
cc: United State Post Office
ATTENTION: Postmaster
City of Monticello J
ATTENTION: Jeff O'Neill
Broadway Partners
Asicafj - -fauon
ATTORNEYS AT LAW
313 win &V.0—V
11. 0. 9m "a
1,mwo wrvc 453. -04A8
6PACL?v v. LARSON TELEPHONE
JAMES G. MEMALIL . C, coin (612! 225-=2
W}"" August 31, 1995 (6121 FAX
Carol A. Gabriel
Real Estate Specialist
United States Postal Service
6800 W. 64th Street, Suite 100
Overland Park, Kansas 66202-4171
Re: Monticello Post Office access
Dear Ms. Gabriel:
I am in receipt of your letter dated August 28, 1995, and a
copy of the deed whereby Monticello Ford reserved an easement for
ingress and egress over the 12' strip. i was out of the office on
August 29th. I do not know if the City or Monticello Ford ever
granted an easement to your landlord. when we constructed an
office building next door, the City caused us to relocate the
driveway. I do know the City and your landlord will not take
responsibility for the driveway that is primarily used by your
patrons. In any event, the easement reservation would appear to
be void as there was a historical gap between our office building
and your landlord's property. Neither Monticello Ford, Inc. or
the City of Monticello can grant or reserve an easement over
property that they never had title to. we have since acquired
that strip.
I have no desire to create a hardship for you or your patrons
but the failure of your landlord to communicate and the City's
position that it has no responsibility forces the issue. I am
willing to negotiate a driveway license agreement for your use of
the driveway. The various owners of our parking lot have spent
thousands of dollars over the years for snow removal and
maintenance. The traffic current flow also presents a safety
hazard. Your landlord can provide you with an alternative access
via adjacent City owned property and increased parking that would
facilitate a safer traffic flow onto another public street. i am
open to any suggestions but the barricade posts will remain until
a resolution is reached. I suggest your landlord approach the
City regarding an alternate access.
This action should come as no surprise to you since your
landlord, the Post Office and the City wero put on notice of what
I intended to do back on April 25, 1995. I enclose a copy of that
letter in the event that you were not provided with one.
Carol A. Gabriel
Page Two
August 31, 1995
Please do not hesitate to contact me.
Respectfully yours,
METCALF, LARSON 6 MOTH
By;
Br ley V. Lafrson, Esq.
BVL/gls
Enclosure
cc: Monticello Post Office
ATTN: Jack
City of Monticello v
ATTN: 011ie
ii K
d
c;o�. t,q Cts
,hy? two commissioners d1d agree to Pxtand the dAr:
yxr•+:ution of the Purchase and Development Contrant rn 11:59
a.m.. Ontober 3. 1!145.
CONSIDERATTON TO REVIEW.FOR FTIFTHRR DIREC7TION THE DEVvLOPME?lT
Af3REEMENT BETWEEN--THE_HRA Atli) LARSOT7_METf)AGF_RELATIN_G TOA 20
FC16T EASEMENT.
Sinue the poet office arc:ess to Locust Street was blonke.l.
Administrator Wolfsteller has heard from tho US Postal Sorvico
In St. Louis. He informed postal service of Development
Agreement between the HRA and Larson/Metcalf relating to rhe
20 foot easement.
Koropchak informed m.:mhers that Brad Larson was faxed a cony
of the Development Agroement of 1983. with an incorrect fax
number, the fax was just received today. Brad Larson has not
responded at this point. After a brief discussion, Al Larson
made a motion to rake a "wait and ace approach." Rotjo;r
CArlsnn seconded the motion and with no further discusslein.
the motion passed unanimo »sly.
CONSIDERATION TO RE'JTEW FOR FURTHER DIRECTION THE COMPARISON
SM4EEN THE TAX INCREMENT ntIARANTEE AND SHE TAX_ INrR£MENT
RECEIVED RELATING TO• CERTAIN TTF DISTRICTS:_
HRA members reviewed the Information provided In rhe: agenda
supplement and asked why the shortfalls. Although some
Individual diatrlcts may corrcact their shortfall prior rn
dacartification throu,,lh an inr.rease in the estimated market
valuo, the main reason for the shortfall is the result of the
reduction of the preferred r,lassification rates for commercial
and Indu&trial property,
With the HRA'a belief "a contract is A contrant", Al Larson
made a motion authorizi ng the lssuanr.:• of an annual tax
increment guarantee shortfall notice (not due anti payable)
with an explanation that tho NAA will rnmpare for compliance
the total amount of tax inr.rement received upon
decortlflcatlon of the dlstrict and the tax Incremont
guarantee. This for TTP District Nos. 1-8 NSP, 1-9 Tappers,
1-10 Remmele, and 1-12 Arnplax. Also, the motion authorized
a suronci letter ha lasued to .Tay Morrall relatinu to the
819,00:3.50 tax Increment guarantee shortfall due and payahl'.
for derprtifed TTF District Noa. 1-1 and 1-4. Roper Carlson
sroondpd the motion. Additionally, the HRA tabled any TI
UuarAntee enforcement dat":islonea until such time as necessary.
With no furthor dlsruestr.,n, the motion paasad unanimously.
KoropithAlt repnrroni rho City Administrator was notified by the
StAte nppartmont of Rovunua that the City of Monrlrollo's Tax
Increment Aid Reiluntlon (IiACA Penalty) for 1948 la $31,4:31 for
Page 2
// L
HRA AGENDA
OCTOBER 4, 1995
Ill -Wf_
F 111
In order to encourage the two property owners to resolve the issue of maintaining
the driveway access to Locust or to encourage Cinco Corporation to contact the City
of Monticello for consideration to purchase the old Hass propoerty, the HRA
recommended Metcalf & Larson address a letter to Cinco Corporation giving a 30 -
day notice to close the driveway.
On September 6, 1995, the HRA faxed Brad Larson a copy of the Development
Agreement between the HRA and Metcalf and Larson wherein the developers
agreed to file of record a twenty foot wide easement for the purposes of ingress and
egress in favor of the City of Monticello to be approved by the City Attorney. In
order to allow time for Brad Larson to respond to the HRA fax, the commissioners
passed a motion of a "wait and see approach'.
The attached tenet (Letter #1) from Brad Larson is a response to the fax. To
improve communications and upon HRA Chairperson approval, the Executive
Director submitted the copy of the Development Agreement to Cines Corporation.
See attached Letter #2. ,)
This is a fellowup agenda item for informational purposes and the HRA may wish
to continue the 'wait and see approach" since little time has lapsed from the date of
the two attached letters.
Page I
//M
Id
r
BRADLEY V. LARSON
STEVEN d MUTH
.NYES Q METCALF. OF emom
0MIM
City of Monticello
250 East Broadway
P_ O. Box 1147
Monticello, Minnesota
ATTENTION: 011ie
Dear 011ie:
dwi.q lauon 6 Mull
ATTORNEYS AT LAW
3* Mrn Bi•�0+.►,
P.O. am •b
MwgCMb, AlwwwM 5SM2-044
September 6, 1995FAX
55362-9245
TELEPHONE
9MZ 29S3t32
Thank you for your fax of today attaching the 1983
Development Agreement between Jim and I and the City. we had not
been able to find an executed copy.
with regard to paragraph 10 wherein we agreed to file a
twenty foot (20') wide easement in favor of the City of Monticello
to be approved by the City Attorney, as I recall, that was never
done. I am willing to file a formal easement in favor of the City
which I assume would be assigned to the post office landlord but I
think it appropriate a Maintenance Agreement be entered into or,
since it is going to be a public easement, that the maintenance be
borne by the City.
If the City is not interested in entering into a Maintenance
Agreement or maintaining the easement, maybe it is appropriate at
this point in time to look at opening up the "Hass" lot access.
Thanks!
BVL/gls
cc: David Hyttsten
Respectfully yours,
METCALF, LARSON S MUTH
By: f
Bradloy V. Lazson, Esq.
L X11 e r 1
250 East Broadway
P. O. Box 1147
Monticello, MN
55362.9245
Phone: (6IZ) 295.2711
Metro: (612) 333-5739
Fax: (612) 295-4404
Cinco Corporation
P.O. Box 185
St. Cloud, MN 56302-1185
Gentlemen:
September 27, 1995
Enclosed is a copy of the Development Agreement between the Monticello Housing and
Redevelopment Authority (HRA) and Bradley V. Larson and James G. Metcalf. As noted
the developers agreed to fde of record a twenty (20) foot wide casement for purposes of
ingress and egress in favor of the City of Monticello to be approved by the City Attorney.
There is no mention of the HRA agreeing to enter into a Maintenance Agreement relating
to 20 foot wide easement. As property owners, you may wish to consider participation in
the cost for maintaining the easement or driveway to appease your tenant, the United States
Post Office.
Also enclosed aro copies of letters from Bradley V. Larson dated April 25. 1995. and
September 6. 1995.
Sincerely,
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO
011ie Koropchak
Executive Director
cc: United States Post Office, Postmaster
Bradley V. Larson, Attorney at Law
HRA File
HRA MINUTES
NOVEMBER 1. 1995
meeting; thereafter, will the Council consider all recommendations for direction of
commission appointments in January, 1996.
71\./ a. 1. .1; : :.0 „171 I ! . : I Q1910 l• 1. M40A a
J 191 = 1. „Iau
Administrator Wolfsteller requested the HRA consider enforcement of their
agreement with Metcalf/Larson relating to the 20 ft easement. If the HRA has no
plans to enforce their agreement. Mr. Wolfsteller may bring the matter before the
City Council for consideration to block -off the City -owned property behind the
Metcalf/Larson building or for the Council to consider a temporary access through
the old Hass property. HRA members felt the benefactor of the 20 ft easement was
the Post Office and perhaps they should consider entering into a maintanence
agreement with Metcalf(Larsm. HRA members suggested Koropchak invite Brad
Larson to the December HRA meeting to determine the HRA's role if any.
9. OTHER BUSINESS_
a) Authorization to pay bills - The HRA authorized payment of the enclosed
monthly bills.
b) Koropchak invited and encouraged members of the HRA to attend the
NAHRO Conference on November 30. Chairperson Larson expressed
interest if his calendar was clear.
• • • l; •lul4u
The HRA meeting adjourned at 8:OOp.m.
011ie Koropchak. E ecutive Director
Page 4
n to
HRA NMNUTES
JANUARY 10. 1996
limitation. the HRA recommended the Council consider the request for
assistance.
Other - The HRA members accepted Brad Larson's satisfaction of the
blocked easement as it relates to tion-maintanence agreement between the
owaers.
Ile HRAmeeting adjourned at 9:50 p.m.
Z) 9 \`tom/&10 C�Jdj�
011ie Koropchak, Executive Director
Page 6
//a,
HRA AGENDA
MAY 1, 1996
X11 7 yl: 1, 41 y1 Y lr 511 rtM1-10r- T I 111 HO %77M-740 ZI 1 r7irl
1 1� l 1 1 yl 1 l4� .yll yl
il'y1 :11.1 tl l�
Enclosed is a copy of a letter of resignation from Mr. Ellison. Upon acceptance of
the resignation. the HRA should consider authorizing the expenditure to advertise
in the Monticello Times for a replacement. Remember under Minnesota Statutes,
an HRA commissioner must be a resident of the government entity of service. Upon
advertising and interviewing, the HRA will make a recommendation to the City
Council for appointment of an individual to fill the term of the seat vacated by Mr.
Ellison. The term expires December 1997.
B. Alternative Action,
1. A motion accepting the letter of resignation from Everette Ellison and
authorizing the advertisement for a replacement.
2. A motion denying acceptance of the letter of resignation.
3. A motion to table any action.
C. Recommendation,
Recommendation is Alternative No. 1.
D. quogrting Data.
Copy of the letter of resignation.
t Page 1
HRA AGENDA
MAY 1, 1996
Swirl1 1. -11:1ll 1 :1l
i"- . :u. .'IP T 11,-
The HRA approved a motion on April 3, offering a first right of refusal for the
property located at I I I West Broadway. Terms of the contract were not -to -exceed
three years, $100 per year.
Upon contacting Mr. Fluth the next day, he did not accept the first right of refusal
and was insulted by the offer. His counter-offer, as he understood was the intent of
the HRA at the March 20 meeting: Offer to acquire the property at the appraised
value, $2,500earnest motley, not -to -exceed nine months from the date of the option
agreement, and first right of refusal.
This is an update only, unless the HRA wants to consider the counter-offer.
C Page I
HRA AGENDA
MAY 1, 1996
t IJI � +{x:11 IJI ,Ill �. �K 1. 1 1 � 1 � � :11 • �+1 .'l 11 �I I.i\� '71 1 � :I.1 �
1I
Previously the HRA approved an interest free, unsecured loan of $10,000 to the
Monticello Community Partners to assist with the organizational and startup costs
associated with development of a Minnesota non-profit corporation. loan payback
one year from date of HRA approval or December 6, 1996. With the filing of the
Articles of Incorporation, Attorney Bubul has prepared the loan agreement for
execution. One correction is underway, HRA signature changed to that of the HRA
Vice Chairperson. A copy of the loan agreement will be submitted to MCP Chair
Bowen for consideration of approval by the MCP Boardmembers at their scheduled
meeting of May 8, 1996.
B. Alternative Action,
I. A motion authorizing the execution of the Loan Agreement between the
d HRA and MCP.
2. A motion denying authorization to execute the loan agreement.
3. A motion to table any action.
C. Recommendation.
Alternative No. 1.
D. s=rlinn Data_
Copy of the agreement for execution.
C Page I
LOAN AORBih1 MMT
THIS AGREEMENT dated as of , 1996 Is between the
Housing and Redevelopment Authority in and for the City of Monticello (the
"Authority") , and Monticello Community Partners, a Minnesota nonprofit corporation
(the "Borrower").
This Agreement is made as a result of Borrower's desire to borrow from
Authority the sum of Ten Thousand and nollooths Dollars ($10,000) for the purpose
of activities related to the promotion of downtown redevelopment within the
Authority's Redevelopment Project No. 1, including without limitation conducting
studies and analysis, holding public meetings, raising additional funds for such
purposes, and retaining consultants to carry out such tasks.
Borrower has agreed to repay this loan by making one payment of $10,000 on
December 8, 1998 pursuant to the terms of the promissory note entered into this same
date and incorporated herein by reference (the "Note"). In consideration of the
mutual covenants and agreements contained herein, the parties agree as follows:
1.
Amount and Terms of Loan
A. Loan: Subject to and upon the terms and conditions herein set forth,
Authority sbMend to Borrower the sum of $10,000.
B. Note: The loan of Authority to Borrower shall be evidenced by a
Promissory Note of even date herewith to be executed by Borrower.
C. Intent: The Note shall not bear interest and shall be duo and payable
as more epeailicaZly set forth In said Note.
D. Prepayment Permitted. Borrower shall have the right to prepay the
Note at any time without penalty as more specifically sot forth in the Note.
II.
Becurl
A. No Securlty Required. Tho Authority shall receive no mortgage or
other security interest in any property owned or controlled by Borrower.
B. Release. Upon payment in full by Borrower to Authority of all amounts
duo and pays ie to Authority under this Agreement, Authority shall release all
interests acquired or to be acquired by it hereunder.
Ill.
Ann nn vo Covemata
Borrower covenants and agrees that until the Note is paid in full. Borrower
shall comply with the following provisions in this Section III unless specifically
welved by Authority in writing:
A. Financial StatemenFs_i9d Othe? Jnform stlon. Borrower shall furnish or
cause to be furnished to Authority, upon uthority's mquost, periodic financial
antoua
Otte."
2'd
N3AUn 9 I.03 43H 92:01 %. 52 bdb
statements Including balance sheets, income etatcments, budgets, all tax records
(state, local and federal), all payroll records, all sales records, and all purchase
records or copies thereof. All of such information shall be in full, complete, and
accurate and certified by an officer of Borrower as being full, complete, and
accurate.
B. Taxes and Claims. Borrower shall duly pay and discharge all taxes,
assessments, and governmental chargee upon or against Borrower or any of
Borrower's property and shall pay the same prior to the date on which penalties
attach thereto. Borrower shall also cause to be paid all lawful claims which might or
could if unpaid become alien or charge upon the properties or assets of Borrower,
unless and to the extent only that the same are being diligently contested in good
faith and by appropriate proceedings.
C. Maintaining Corporate Existence. Borrower shall at all times maintain
its corporation to good standing with respect to compliance with Minnesota Statutes
and the rules and regulations of the office of the Minnesota Secretary of State.
D. Books and Records. Borrower shall maintain at all times true and
complete books, records, and accounts in which true and correct entries shall be
made of its transactions in accordance with generally accepted accounting principles
consistently applied.
E. Use of Loan Proceeds. Borrower shall use the entire proceeds of the
loan evidenced hereby for the purpose stated in the recitals hereof.
F. Comullance with Laws. Borrower shall fully and completely comply with
all laws, rules, regulations, ordinances, and the like affecting the operations of
Borrower.
G. Further Assurances. Borrower shall, at its cost and expense, upon
request of Authority, duly execute and deliver to Authority such further
instruments and cause to be done such farther acts as may be necessary or proper
in the opinion of Authority to carry out more effectively the provisions and purposes
of this Agreement.
H. Notice of L1tlggnntion. Promptly after the commencement thereof,
Borrower shall provide Authority with notice of all actions, suits, and proceedings
before any court or governmental department, commission, board, bureau, agency,
or instrumentality, domestic or foreign, affecting Borrower which, If determined
adversely to Borrower, could have a material adverse affect on the financial
condition of properties or the operation of Borrowor.
IV.
"tivo Covenants
Borrower covenants and agrees that, until the Note, together with interest
and all other Indebtedness to Authority under this Agreement or otherwise aro paid
in full. Borrower shall not, without the prior written oonsent of Authority, which
consent shall not be unreasonably withheld:
A. Entor Into any transaction or merger or consolldettons, or transfer,
sell, assign or otherwise dispose of all or a substantial part of Borrower's property
or assets or any of its accounts receivable or any assets or proportion necessary for
awotwrsow
W200-61
E d N3NddD 8 A031N3H 62:01 %. 52 "j
the proper conducts of its business, or change the nature of its business or wind
up, liquidate or dissolve or agree to do any of the foregoing.
B. Prepay or allow the prepayment of any obligations of Borrower in favor
of any parties other than Authority.
C. Sell, lease, assign, transfer, or otherwise dispose of any of Borrower's
now owned or hereafter acquired assets except for the sale or other disposition of
assets no longer used or useful in the conduct of the business of Borrower.
D. Assume, guarantee, endorse, or otherwise be or become directly or
contingently responsible or liable (including, but not limited to, an agreement to
purchase any obligations, stock, assets, goods, or services, or to supply or advance
any funds, assets, goods, or services) for the obligations of any person,
partnership, corporation or any other entity, except guaranties by endorsement of
negotiable instruments for deposit or collection or similar transactions in the
ordinary course of business.
V.
Defhult and Remedies
A. Events of Default. If any one or more of the following events, herein
called "events of default", shall occur for any reason whatsoever, whether
voluntarily or involuntarily:
(1) if default shall be made in the due and punctual payment of the
amounts due under the Note.
(2) If default shall be made in the performance or observance of any
covenant or agreement or other provision of this Agreement or in any
instrument or documents delivered to Authority in connection with this
Agreement or otherwise.
(S) If any representation or warranty or any other statement of fact
herein or in any writings, certificate, report or statement at any time
furnished to Authority in this Agreement pursuant to or in connection with
this Agreement or otherwise shall be false or misleading in any material
respect.
(4) If Borrower shall admit in writing its inability to pay its debts
generally on they become due, file a petition in bankruptcy or petition to take
advantage of any Insolvency act, make an assignment for the benefit of its
creditors or commence a proceeding for the appointment of a receiver,
liquidator or conservator.
(S) If Borrower shall be adjudged bankrupt or a court of competent
jurisdiction shall enter any order, judgement or decree appointment e
receiver, trustee, liquidator or conservator of Borrower.
(0) If any judgment against Borrower or any attachment or execution
against any of their respective properties, in such amount which in the
opinion of Authority substantially impafry Borrower's performance of thio
Agreement, remains unpaid for a period of more than ten (10) days, or if at
ruemetsor
Meso -SI
d N3&MO 8 A43W3N 22:01 %. S2 MdM
any time Authority shall consider the indebtedness of Borrower to Authority
insecure or any part as the collateral thereof unsafe.
(7) If Borrower shall (a) fail to pay any indebtedness for borrowed
money (other than the Note) of Borrower or any interest or premium thereon,
when due (whether by scheduled maturity, required prepayment,
acceleration, demand, or otherwise), or (b) fail to perform or observe any
term, covenant, or condition on its part to be performed or observed under
any agreement or instrument relating to any such indebtedness when required
to be performed or observed, if the effect of such failure to perform or
observe to to accelerate, or to permit the acceleration after the giving of
notice or passage of time, or both, of the maturity of such indebtedness, or
if any such indebtedness shall be declared to be due and payable, or required
to be prepaid (other than by a regularly scheduled required prepayment),
prior to the stated maturity thereof.
(8) If any litigation, actions, suits or proceedings are brought
against Borrower before any court or governmental department, commission
board, bureau, agency, or instrumentality which, If determined adversely to
Borrower could, in the opinion of Authority, have a material adverse effect
on the financial condition of properties or operation of Borrower.
(9) If any or all of the assets of Borrower are condemned by any
governmental authority or agency.
Then, and in any such event, at any time thereafter if any or such other
event of default shall then be continuing Authority may, by thirty (30) days notice
to Borrower, declare all obligations under this Agreement forthwith due and payable
In full, whereupon all such obligations shall become and be forthwith due and
payable without presentment, demand, protest, or further notice of any kind, all of
which are hereby expressly waived by Borrower, anything contained herein or in
the Note to the contrary notwithstanding.
B. Right and Remedies Cumulative. In case of any one or more of the
events of default Authority may proceed to protect and enforce its rights and
remedies either by suit in equity or by action at law or both, whether for the specific
performance of any covenant or agreement or other provisions contained herein, In
the Note or in any documont or instrument delivered in connection with or pursuant
to this Agreement, or to enforce the payment of the Note by any other legal or
equitable right or remedy. No right or remedy herein conferred upon Authority is
intended to be exclusive or any other right or remedy contained Korvin and every
such right or remedy shall be cumulative herein. No couroc of dealing betwoon
Borrower end Authority, or failure or delay on the part of Authority in exorcising
any rights or remedies of Authority, or any single or partial exercise of any rights
or remedies hereunder shall operate as a waiver or preclude the exercise of any
other rights or remedios hereunder.
V).
Reoresentetions and Warranties
In order to induce Authority to enter into this Agreement and to make the loan
herein provided for, Borrower makes the following representations and warranties
which ohall survive the execution and delivery of this Agreement and the Note and
mamtouwr
intro-rr
S'd N AWD 8 A43N3M 22:01 95, 52 adt
3ther loan documents and any inspection or examination at any time trade by or on
behalf of Authority:
A. incorporation. Good Standing and Due Qualifications. Borrower
warrants and represents that the corporation is duly incorporated, validly existing
and in good standing under the laws of the State of Minnesota, and has the corporate
power and authority to own its respective assets and to transact the business in
which it is now engaged or Is proposing to be engaged in.
B. Corporate Power and Authority. The execution, delivery, and
performance by the corporate Borrower of the documents to be executed in
accordance with this Agreement to which it is a party has been duly authorized by
all necessary corporate action and does not and will not (1) contravene Borrower's
charters or bylaws; (2) violate any provision of any law, rule, regulation, order,
write, judgment, injunction, decree, determination, or award presently in effect
having applicability to Borrower; (3) result in a breach of or constitute a default
under any indenture or loan or credit agreement or any other agreement, lease, or
instrument to which Borrower is a party or by which it or its properties may be
bound or affected; (4) result in or require the creation or imposition of any law,
rule, regulation, order, writ, judgment, injunction, decree, determination, or award
of any indenture, agreement, lease, or instrument.
C. Lecally Enforceable Agreement. This Agreement, and each of the other
documents executed in accordance herervit� are legal, valid, and binding obligations
of Borrower, enforceable against Borrower in accordance with their respective
terms, except to the extent that such enforcement may be limited by applicable
bankruptcy, insolvency, and other similar laws affecting creditors' rights generally.
D. Financial Statements. No information, exhibit, or report furnished by
Borrower to Authority with regard to projected financial statements and in
connection with the negotiation of this Agreement contain any material misstatement
of fact or omitted to state a material fact or any fact necessary to make the statement
contained therein not materially misleading.
E. Other Aar'oetnents. Borrower to not a party to any indenture, loan or
credit agreement, or to any other lease or other agreement or instrument, or subject
to any charter or corporate restriction which could have a material adverse effect on
the ability of Borrower to carry out is obligations under this Agreement and the
documents to be executed pursuant hereto. Borrower is not in default in any
respect in the performance, observance or fulfillment of any of the obligations,
covenants or conditions contained to any agreement or Instrument materlsl to its
business to which it may be s party.
F. Litigation. There Is no ponding or threatened action or proceeding
against or affsec ng Borrower before any court, governmental agency or arbitrator
which may, in any one case or in the aggregate, materially adversely affect the
financial condition, oporations, properties or business of Borrower or the ability of
Borrower to perform its obligations under this Agreement or under the documents
pursuant hereto to which they are a party.
G. No Defaults on Outs tend in Jq udgmments or Orders. Borrower has
satisfied all judgments, and Borrower is not in default with respect to any
judgttwnts, and Borrower is not in default with respect to any judgment, writ,
injunction, decree, rule or regulation of any court, arbitrator or federal, state,
aiouossa
Btnw-es
9 d N3M60 8 ka3,JW31
.4 62:Oi %. 52 NdN
municipal or other governmental authority, commission, board, bureau, agency or
instrumentality, domestic or foreign.
H. Ownership and Liens. Borrower has title to, or valid leasehold interest
in, all of its respective properties and assets, real and personal, as represented in
the financial statements previously referred to herein, other than any properties and
assets disposed of In the ordinary course of business.
I. OQeration of Business. Borrower possesses all licenses, permits,
franchises, patents, copyrights, trademarks, and trade names, or rights thereto,
to conduct its respective businesses substantially as now conducted and as presently
proposed to be conducted, and Borrower is not in violation of any valid rights of
others with respect to any of the foregoing.
J. Taxes. Borrower has filed any and all required tax returns (federal,
state, and local) required to be filed and have paid all taxes, assessmsuts end
governmental charges and levies thereon to be due, including interest and penalties.
VII.
husoellaneoun
A. Costs of Collection. In the event Authority shall retain or engage an
attorney or attorneys to collect or enforce or protect its interests with respect to
this Agreement, the Note or any other instrument or document delivered pursuant
to this Agreement, Borrower shall be responsible for and shall pay all of the costs
and expenses of such collection, enforcement, or protection, including reasonable
attorneys' fees and may take judgment for all such amounts in addition to the unpaid
principal balance of the Note and the accrued interest thereon. Any such costa,
expenses, or attorneys' fees so incurred shall bear interest at the Note rate from the
date that such expenses, costs or foes are paid by Authority.
B. Modification or Waiver. No modification or waiver of any provision of
the Note or of this Agreement and no consent by any of the parties to this Agreement
or any departure therefrom by Borrower shall be effective unless such modification
or waiver shall be in writing and signed by duly authorised officers of the parties
hereto.
C. Oovernine Lew. This Agreement, the Note and any instrument or
document delivered pursuant to this Agreement shell be construed in accordance
with and governed by the lawa of the State of Minneeote.
D. Notices. All notices, requests, demands or other communications
provided for shall be in writing and shall be doomed to have boon given when
sent by certified mail, return receipt requested, addressed as the case may be to:
Authority: Housing and Redevelopment Authority
In and for the City of Monticello
P.O. Box 1147
250 Fest Broadway
Monticello, Minnesota 55362
Borrower: Monticello Community Partners
203 Pine Street
Monticello, MN 55362
oaoto>ra
WIN -1r
G'd 1434bdD 8 62:01 %. S2 Hdh
E. Binding Agreement. This Agreement shell be binding upon and Inure
to the benefit of the partes hereto and their respective heirs, representatives,
successors, assigns, and all subsequent holders of the Note and other Instruments
to be delivered as referred to herein.
IN WITNESS WHEREOF, Authority and Borrower have executed this Agreement
as of the date rust above-mentioned.
HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY
OF MONTICELLO
By
By
Its Dim J � u Qjra ;. 4 ," %
Its Executive Director
MONTICELLO COMMUNITY PARTNERS
By
Its
By
Its
10 W34
.0-u
0 d 43V.IdD I AGWON 0E 101 96. 52 Mdtf
PROla3SORT NOTE
AT: Monticello, Minnesota
AMOUNT: $10,000 DATE:
FOR VALUE RECEIVED, the undersigned, Monticello Community Partners, e
Minnesota nonprofit corporation, the address of which is 205 Pine Street, Monticello,
Minnesota 55362, promises to pay to the order of the Housing and Redevelopment
Authority in and for the City of Monticello at City Hall, 250 E. Broadway, Mankato,
Minnesota 55362, or at such other place as the holder may from time to time
designate in writing, the sum of Ten Thousand and no/100thaDollare ($10,000), with
no interest on the unpaid principal balance.
The entire outstanding balance, if not sooner paid, shall be paid in full on or
the 8th day of December, 1996.
This Promissory Note may be prepaid, in whole or in part, without prepayment
penalties.
This Note is not secured by an interest in reel or person property owned or
controlled by Monticello Community Partners or by any personal guaranty of the
offieers or directors of Monticello Community Partners.
All the agreements, conditions, covenants, provisions, and stipulations
contained in the Loan Agreement are hereby made a pert of the Note to the same
extent and with the scams force and effect as if they were fully set forth herein.
If a default occurs under this Note and is not cured with ten (10) days after
written notice to the undersigned, or if default occurs under the Loan Agreement
and is not cured within any applicable grace period, than the holder may, an Its
right and option, declare immediately due and payable the unpaid balance of this
Note.
The undersigned agrees to pay all costs of collection, including reasonable
attorneys' fees and legs] exponaes, incurred by the holder in the event this Note is
not duly paid. The holder may at any time renew this Note or extend its maturity
date for any period and release any security for, or any party to, this Note, all
without notice to or consent of and without releasing any party, maker, endorser or
guarantor from any liability on this Note. Presentment or other demand for
payment, notice of dllshonor and protest are hereby waived by the undersigned.
waioteu
wive -It
6'd WJAtW 8 A03N"3x OE:01 %. S2 adri
IN WITNESS WHERI(OP, the undersigned has caused this Note to be executed
by Its authorized officer(a) as of the day and year first above written.
MONTICELLO COMMUNITY PARTNERS
By
Its
By
Its
0XIOMU
IO WIS
01'd nl3AUM 8 AQ3443H IEt0I %, s2 a*
HRA AGENDA
MAY 1, 1996
a) Approval of HRA monthly bills.
RML
c Page 1
t� Monticello HRA
PO Box 1147
Monticello MN 55362-9245
April 10, 1996
MC100.04 TIF BUDGET MODIFICATION (1196)
Hours
314196 DJF CWWxa6w of Dom- d=w-A books prepared 1.25
Amount
131.25
Total Due This Month: 1.25
$131.25
Prevbus Balance:
$52.54
3127196- PapTwd - thank you
($52.50)
Total Balance Due:
$131.25
EHLERS AND ASSOCIATES, INCJPUBUCORP INC.
2950 NORWEST CENTER
90 SOUTH SEVENTH STREET
MINNEAPOLIS, MN 65402
Q Monticello HRA
PO Box 1147
Monticello MN 55362-9245
April 10, 1996
MC100-03 REDEVELOPMENT DISTRICT
3/1/98 MTR Discussions on housing mdevebpmetit 0.50 52.50
3/4/98 MTR Memo on options for tcwhv redeveWnent 1.00 105.00
318198 MTR HRA meetbrg 2.75 288.75
3113196 MTR Corderenc oeQ on housing redevebpment 0.75 78.75
Tote) Due This Mordh:
Tote) Bei Due:
EHLERS AND ASSOCIATES, INCJPUSLICORP INC.
2850 NORWEST CENTER
90 SOUTH SEVENTH STREET
MINNEAPOLIS, MN 55402
5.00 ;525.00
$525.00
Monticello HRA
PO Box 1147
Monticello MN 55362-9245
April 10, 1996
MCIOO-05
CITY-WIDE PROFORMA
3/25198 DJF
Prepare Ckywide TIF Proforma
Hours
5.50
Amount
577.50
3/28188 DJF
Prepare Cdywide TIF Proforma
3.00
315.00
3127198 MTR
Work on pro roma
2.25
238.25
DJF
Prepare C tywWe TIF Proforma
3.25
341.25
3129198 DJF
Prepare Citywide TIF Proforme
4.50
472.50
Total Due This Month: 18.50 $1,942.50
Total Betame Due:
EHLERS AND ASSOCIATES, INCJPUBLICORP INC.
2950 NORWEST CENTER
90 SOUTH SEVENTH STREET
MINNEAPOLIS, MN 55402
$1,942.50
KENNEDY a GRAVEN
Ohrared
200 SwA SbrN Svaet, we. 470
MW*v^ MN SS402
`�- (612) 337.9300
CLIENT SUMMARY April 12, 1996
City of Monticello
PO Box 1147
Monticello, MN 55362-9245
Through March 31, 1996
MN190-00052: Monticello Community Partners S 880.25
MN 190-00053: Master's Home Furnishings Demolition $ 89.50
Services Rendered: $ 837.60
Disbursements: S 132.15
Balance Due: $ %9.75
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ti 01b soaarr. dWn a Orw1e
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KENNEDY 8t GRAVEN
Chywrw
200 SwrA 54N Sneer, Sulu 470
Mhmemd4, MN S5402
(612)337.9300
April 12, 1996
Long Distance Phonc Charge
City of Monticello
03/08/96
PO Box 1147
90.00
Monticello, MN 55362-9245
Photocopies
MN190-00052: Monticello Community Partners
03/08/96
Invoice k 8882
2.75
Through March 31, 1996
Messenger Service - Street Fleet
For All Legal Services As Follows:
03/27/96
03/07/96 IMS Review proposed bylaws; phone call with 0
1.70 227.80
Koropchak, B Bowen and IRS; complete articles
Total Disbursements:
03/08/96 IMS Prepare bylaws; review 501(cx3); phone call with
0.80 107.20
O Koropchak
$ 880.25
03/11/96 JMS Prepare draft organizational meeting and bylaws;
1.80 241.20
review 501(c)(3) application
03/15/96 JMS Phone call M Brenden and 0 Koropchak re 501(c)
0.80 107.20
corporations
03/18/96 JMS Intraoffice conference with S Bubul re application
0.20 26.80
03/21/96 SJB Phone call with 0. Koropchak re incorporation
0.30 38.70
issues
Total Services:
S 748.90
For All Disbursements As Follows:
02/01/96
Long Distance Phonc Charge
8.86
03/08/96
Secretary of State - articles of incorporation
90.00
03/08/96
Photocopies
0.80
03/08/96
Mileage expense (RHS)
2.75
03/08/96
Messenger Service - Street Fleet
18.94
03/27/96
Fax
10.00
Total Disbursements:
$ 131.35
Total Services And Disbursements:
$ 880.25
KENNEDY a GRAVEN
Chwured
200 South Shah Street, Suis 470
MmteyOaf, MJ Sm
(612) 337.9300
April 12, 1996
City of Monticello
PO Box 1147
Monticello, MN 55362-9245
MN 190-00053: Master's Home Furnishings Demolition
Invoice A 8883
Through March 31, 1996
For All Legal Services As Follows:
03/12/96 DJG Phone call with O Koropchak re Masters
development
03/21/96 SIB Phone call with O. Koropchak re preliminary
development agreement
Total Services:
f� For All Disbursements As Follows:
03/15/96 Photocopies
Total Disbursements:
Total Services And Disbursements:
0.50
50.00
0.30
38.70
S
88.70
,
0.80
S
0.90
S
89.50
KENNEDY at GRAVEN
Chnumd
200 South Sbith SVM WO 470
¢ MMneopons, MN sm
l (612) 337-9300
CLIENT SUMMARY April 12, 1996
Monticello HRA
City Hall
250 East Broadway
PO Box 83A
Monticello, MN 55362
Through March 31, 1996
MN 195-00004: Kaumiarek Acquistion S 819.75
Services Rendered: S 816.75
Disbursements: $ 3.00
Balance Due: $ 819.75
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Monticello HRA
City Hall
250 East Broadway
PO Box 83A
Monticello, MN 55362
KENNEDY at GRAVEN
orated
200 South Slah Snee; State 470
MWwwok MN 55402
(612) 337.9300
April 12, 1996
MN 195-00004: Katzmarek Acquistion
Invoice # 8884
Through March
31, 1996
For All Legal Services As Follows:
03/04/%
CHT Phone calls with 0 Koropchak and title company;
0.60
90.00
letter to 0 Koropchak
03/05/96
CHT Phone calls with 1 Farrell, 0 Koropchak and title
0.60
90.00
company
03/11/%
CHT Letter to 0 Koropchak re appraiser and title
0.30
45.00
03/12/96
CHT Phone call with 0 Koropchak re relocation
0.20
30.00
consultant
03/15/%
CHT Letters to K Helvey, J Farrell and R Katzmarek;
1.50
225.00
phone call with Wright Tide re status
0320/96
CHT Phone calls with 0 Koropchak and J Farrell
0.20
30.00
0322/96
CHT Phone call with J Farrell re appraisal
0.20
30.00
0325/96
CHT Fax to 0 Koropchak re Katzmarek letter;
0.30
45.00
intraoff-ice conference with S Bubul
0327/96
CHT Phone call with and letter to 0 Koropchak
0.40
60.00
0328/96
SJB Research relocation question; phone call with 0.
0.75
101.25
Koropchak and L. Larson re same
0328/96
CHT IntraofTice conference with S Bubul re status
0.20
30.00
0329/96
SJB Phone call with 0. Koropchak re Katzmarek
0.30
40.50
Total Services:
S
816.75
For All Disbursements As Follows:
03/25/96
Fax
3.00
Total Disbursements:
S
3.00
Total Services And Disbursements:
$
819.75
9�Otto;
APPRAISAL DATE
28 March 1996
JOHN FARRELL
CwdftO O.Nod A
PA. BOK 170. SM LONE OAK R0.
RMFORO, rM SU7a
TELEPHONE Ino 4n4m
D=R)PTI0N
RESIDENTIAL APPRAISAL REPORT
FEE OWNER: Robert J Ratzmarek
PROPERTY ADDRESS: 1400 W Broadway
Monticello MN 55362
Monticello HRA
PO Box 1147, Monticello, MN
55362
APPRAISAL FEE
$350
I
INVOICE
WRIGHT TITLE GUARANTEE CO.
429 EAST MAIN STREET
ELK RIVER, MN 55330
0009900
Kennedy 6 Graven, Chartered
Attn: Janet Smith
470 Pillsbury Center
Minneapolis, MN 55402n
Buyer : Mont Housing & Redev Authority
Seller:
Property address: 1400 west Broadway
Legal 1: P/O lot B of S1/2 of
Legal 2: 3-121-25
Legal 3:
Sales Amount: $ 0.00
Loan Amount : $ 0.00
03/18/1996 File Number: 96030022 Invoice #: 2487
.............................. .... ............ ..................—M..
Income Code Description Amount
premium fee (To be determined)
service charge 100.00
abstract fee 196.00
Invoice Total $ 296.00
WRIGHT TITLE GUARANTEE CO.