HRA Agenda 03-06-1996AGENDA
,L MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, March 6, 1996 - 7:W p.m.
City Hall
MEMBERS: Chairperson Al Larson, Vice Chairperson Brad Barger, Everette Ellison. Tom
St. Hilaire, and Roger Carlson.
STAFF: 011ie Koropchak, HRA Executive Director
Rick Wolfsteller and Jeff O'Neill
GUEST: Mark Ruff, Publicorp
John Komerak, Developer
MCP Boardmembers
I. CALL TO ORDER.
2. CONSIDERATION TO APPROVE THE FEBRUARY 14. 1996 HRA MINUTES.
3. CONSIDERATION "1'0 REVIEW THE FEASIBILITY ANALYSIS AND
FUNDING OPTIONS TO ENCOURAGE THE DEVELOPMENT OF PRAIRIE
WEST PLUS.
4. CONSIDERATION TO REVIEW FOR ADOPTION A RESOLUTION FINDING
CERTAIN PROPERTY OCCUPIED BY A STRUCTURALLY SUBSTANDARD
BUILDING AND AUTHORIZING A PRE -DEMOLITION DEVELOPMENT
AGREEMENT BETWEEN THE HRA AND BARRY FLUTH.
5. CONSIDERATION OF HRA UPDATES:
a) Eminent Domain proceedings
b) [IRA levy.
c) Appruval of monthly bills.
6. 90) P.M. - CONSIDERATION TO REVIEW THE RFPs FOR SFLECTION OF
THREE PLANNER CONSULTANT FIRMS TO INTERVIEW AND MAKE
PRESENTATIONS.
a) General review of RFPs.
h) MCP report on reference checks.
c) Rating by criteria.
d) Interview and presentations scheduled for Wednesday. March 20, 60) p.m.,
City Hall.
7. OTHER BUSINESS.
R. ADJOURNMENT.
S
LI
HRA AGENDA
MARCH 6, 1996
At the February 14 HRA meeting, members approved the preliminary concept for
TIF assistance for development of the Prairie West Plus. Additionally, HRA
members encouraged John Komerak and City Staff' to negotiate terms for purchase
of the old Gille parcels now owned by the City.
Komerak met once with the City Administrator and Assistant Administrator to
determine a purchase price. Since that time. Komerak has provided Mark Ruff of
Publicorp with a Source in Use Statement. Ruff is preparing options to make the
project financially feasible with a reasonable rate -of -return for the developer and an
acceptable land price for the City/County.
Enclosed is Komerak's use statement and a summary of Mark's feasibility analysis.
Mark will attend the HRA meeting to explain the options.
Page 1
NwimS
MONTICELL0 HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, February 14, 1996 - 7:00 P.M.
City Hall
MEMBERS PRESENT: Chairperson Al Larson, Vice Chairperson Brad Barger, Tom St.
Hilaire, and Roger Carlson.
MEMBERS ABSENT: Everette Ellison.
STAFF PRESENT: Rick Wolfsteller, Jeff O'Neill, and 011ie Koropchak.
GUESTS: Steve Bubul, HRA Attorney
John Kometak, Developer
Rich Carlson, Real Estate Agent
Chairperson Larson called the HRA meeting to order at 7:10 p.m.
a 1 •t7`il o7:\J7:iai9 0. 1 1
u 1►t !f • 1 �. : ►l • Iota .•�I�11•
Roger Carlson made a motion to approve the January 10, 1996 HRA minutes. Brad
Barger seconded the motion and with no corrections or additions, the minutes were
approved as written.
Al Larson made a motion to approve the January 24, 1996 HRA minutes. Roger
Carlson seconded the motion and with no corrections or additions, the minutes were
approved as written.
The January 24,1996 Joint HRA, Planning and Parks Commission minutes were not
completed nor submitted for approval.
CONSIDERATION TO HEAR_ A PRESENTATION BY JOHN KOMERAK
RELATING TO THE PROPOSED PRAIRIE WEST PLUS DEV .LOPMENT
AND PRELIMINARY CONCEPT APPROVAL FOR TIF ASSISTANCE.
John Kometak informed HRA members that Prairie West was originally platted into
seven lots (single residential development) because of neighborhood opposition to
multi -residential development. However, based the interest of the HRA to acquire
the Katzmarek property for public purpose, the potential interest of TIF assistance
for the Hanswalt and Banyai properties, and the City's willingness to negotiate a
Page I
HRA MINUTES
FEBRUARY 14, 1996
purchase price on the Gille property; the developer presented a Planned Unit
Development (PUD) of twinhomes and quadhomes. The proposed development
known as Prairie West Plus included an internal road system, green space, twin and
quad homes from 1,500.1,600sq ft each, valued between $115,0004160.(Mcreating
a user-friendly neighborhood. Prairie West Plus development would include the
parcels of Prairie West, Hanawalt, Banyai, and City/County.
Komerak has purchased Praire West, conversed with Hanawalt and Banyai, and has
not approached the City relating to purchase of the old Gille property.
Development cost to install a sewer system and construct a private roadway was
estimated at approximately $400,000 by the developer. The PUD concept has not
been reviewed by the Planning Commission.
Wolfsteller reported the City has approximately 530,000-$35,000 into the Gille
property plus an additional $14,000 of delinquent taxes. The city recovers its cost
first and the county recovers second. HRA members encouraged Komerak and city
staff to negotiate purchase terms for the Gille property.
Koropchak reported parcels of Hanwalt. Banyai, and the smaller City/County parcel
would qualify as a Redevelopment District. Based on the construction of three
quadhomes within the district, at a per unit value of $120,000 each, district life of
20 years: the available TIF assistance is projected at $160,OOONPV (pay-as-you-go).
Because the preliminary development plans presented by Komerak, known as Prairie
West Plus, met the objectives of the HRA: Brad Barger made o motion of
preliminary concept approval for TIF assistance. Tom St. Hilaire seconded the
motion and with no further discussion, the motion passed unanimously. HRA
objectives: Removal of blight and development of upscale housing and green space.
Komemk anticipates the first -phase development of a quadhome to be on the
Hanawalt property, construction fall 1996.
CONSIDERATION TO ADOPT A RESOLUTION AUTHORIZING EMINENT
DOMAIN PROCESSINGS TO ACQUIRE CERTAIN REAL ESTATE WITHOUT
QUICK -TAKE. AND CONSIDERATION TO A rTHO tZE AN APPRAISALJ2E
SAID PROPERTY.
With the modification of the Central Monticello Redevelopment Plan and Project
No. 1 completed, the HRA is requested to take formal action and adopt the
resolution authorizing eminent domain processings to acquire the Katzmarek
properly. Prior to the modification process. Katzmarek was contacted to meet with
Page 2
HRA NIINUTES
FEBRUARY 14, 1996
Larson and Koropcbak to discuss the HRA's interest to acquire the property;
however, Katzmarek was not receptive to the idea.
HRA costs associated with the eminent domain processings are estimated to be
approximately $25,000 to $30,000. HRA members authorized Attorney Bubul to
select a qualified appraiser and to obtain estimated costs for selection of a relocation
consultant as needed to carry out the said processings.
Komerak informed HRA members of his earlier conversation with Ka=narek.
Komerak proposed swapping the Katzmarek property for a township property with
similiar amenities such as a creek. The conversation ended as the value of
Katzmarek amenities became unreal. Komerak felt perhaps if Katzmarek was
approached with the idea the property would be utilized as a public park and [tamed
"Katzmarek" this may result in a receptiveness of acquisition. Komerak in
agreement, the HRA requested Komerak approach Katzmarek one last time for
discussion to acquire the property prior to filing the petition of eminent domain.
Al Larson made a motion adopting the resolution authorizing eminent domain
processings to acquire certain real estate (Kammarek) without quick -take. The
motion was subject to results of Komerak's discussion with Katzmarek. Tom St.
Hilaire seconded the motion and with no further discussion, the motion passed
unanimously.
1. • 30 • . I. t• •:
Rich Carlson informed HRA members that the HRA agenda supplement
information relating to the offer of the purchase option was true and correct.
Additionally, Carlson reported the owners are currently without housing.
Since the fire of February 6 and on February 12, the City Building Official received
a request for a building permit from a contractor hired by the insurance company.
The City of Monticello has five days to issue a permit. Normally, an insurance
company boards up the property to allow time for appraisal of structural damage.
Service Master may be appraising personal property damages.
HRA members declared the January 12, 1996 HRA offer ($163,000) of the purchase
option relating to Block 64 was null and void as the HRA did not receive a copy of
the written response of the February 5, 1996 counter-offer. Deadline for the written
Page 3
HRA MfNUTES
FEBRUARY 14.1996
response to the January 12 offer was February 7. The counter-offer increased the
option fee from $2,500 to $5,000.
t: •� u • „r r r� .� • t. „ a.r : •
With the potential of upcoming projects for the HRA to consider, Al Larson made
a motion authorizing Ethers and Associates (Publicorp) to complete a City-wide Tax
Increment Pro Forma at a cost of not -to -exceed $2,500 for the first -run. Brad Barger
seconded the motion and with no further discussion, the motion was approved
unanimously.
On behalf of the Monticello HRA, Chairperson Larson welcomed individuals to the
informational meeting relating to the RFPs. Ten firms or teams were in attendance
along with MCP Boardmembers Bob Bowen. Linda Smith, Merrill Busch, and Dick
Frie. The audience was informed of the progression steps within the community
which led to the HRA's authorization to develop an RFP for submittal. The HRA
will hire the planning consultant based as a result of the cooperative efforts of the
HRA and MCP. The MCP has accepted a one-year proposal from Theresa
Washburn, a revitalization specialist, and plans to hire a project manager.
Jeff O'Neill gave a brief overview of the provided data relating to redevelopment
or preservation of the downtowntriverfront area. Data included maps of the
downtown and surrounding area -mixed zones, existing zoning, roadway jurisdiction,
traffic volumes, and trail/pathway plans. Study area to be determined by consultant.
Some comments from the HRA Commissioners and MCP Boardmemhers:
• Community looking for a bold move, quality, long term, mind change, and
creative.
• Undetermined if redevelopment or revitalization project.
• Presentation to include a not -to -exceed fee at intervals as a means of checkpoints.
• Monticello, a city or bedroom community'!
• Describe method for gathering community input.
• Community spark and energy in place.
• Merchant's position to keep going.
Page 4
HRA MINUTES
FEBRUARY 14, 1996
• New - raw material to become something.
• Interest and energy in place - capitalize on it.
• Other community projects: School bond and waste water treatment expansion.
• Need big picture for success - S. 10, IS years.
• Impact of Freeway, Highway 25, and river.
• Sales job complete, need know how.
• Give resources to fiord strong downtown.
• Market analysis: What's going to make them corse? Who are we to target?
• Discount market changing, third -generation clothing store closed on mainstreet.
• No pre -conceived ideas.
Some questions or comments from planning consultants:
• What role will the City Engineer, civic engineer (structural), transportation
engineer, or utility engineer play in the study?
• Will the planning consultant work directly with the MCP or its project manager"
Or whom?
• What is Washburn's role?
• The need of an indep0h study of the infrastructure?
• Does City own the right-of-ways to river! Does the City own the island(s)?
• Anticipated date of presentations?
• Suggestion: Select only three firms or teams to give presentations.
• Suggestion: Limit presentation to one hour.
• Suggestion: All presentations or interviews on the same day.
• Suggestion: Call references.
• Suggestion: Presentation by person to work on proposed project.
• Suggestion: Allow adequate time for presentation preparation.
Chairperson Larson reminded firms or teams that the RFPs deadline date for
submittal is March 4, 1996 and thanked everyone for attending.
OTHER BUS ESS,
a) HRA members accepted the monthly HRA bills as enclosed.
h) HRA members acknowledged the prepared letters relating to TIF
Redevelopment Contracts.
c) At Larson requested a checklist of firms or teams in attendance compared to
those mailed an RFP and who referred firms or teams in attendance.
d) Mississippi Shores - Based on a letter from Grover C. Sayre, Attorney for
Presbyterian Homes Housing and Assisted Living, Inc., the HRA is requested
to review and approve the Assignment and Assumption of Contracts.
Page 5
HRA MINUTES
FEBRUARY 14, 1996
Wedum/PHM Affordable Housing, Inc. has recently received its 501(cx3)
exemption status for the IRS. As intended and upon approval of the HRA,
the Mississippi Shores Project will transfer from Presbyterian Homes Housing
and Assisted Living, Inc. to Wedum/PHM Affordable Housing, Inc. Attorney
Bubul suggested approval subject to the Assignment and Assumption of
Contracts being prepared as a recordable document as per the Private
Redevelopment Contract. Brad Barger made a motion to approve the
Assignment and Assumption of Contracts subject to final approval by
Attorney Bubul of the prepared recordable document. Roger Carlson
seconded the motion and with no further discussion, the motion passed
unanimously.
e) Other - HRA members set March 6 as the date to review the returned RFPs.
The review to include the MCP Board of Directors. References to be called
prior to the 7:00 p.m. meeting.
Wednesday, March 20, 6:00 p.m. was set as the date for interviews and
presentation by the selected planning consultants. MCP Boardmembers
included.
The HRA meeting adjourned at 9:45 p.m.
011ie Koropchak. Executive Director
Page 6
MAR 04 '96 03: 44PM EKi.ERS
EMVS ad ft
LEADERS IN PUBLIC FINANCE
Match 5,19%
TO: 011ie Koropchak, City of Monticello
FR Mark Ruff
RE: Komarek Housing Proposal
L Overview
It is our understanding that John Komarek has approached the HRA with a proposal to build 30 units of
housing, 12 units as twin homes and I6 units as quad homes on the former Prairie West parcels and adjacent
land parcels.
Due to the high cost of land acquisition and public utilities, Mr. Komarek has requested that the HRA
provide tax increment financing assistance in the amount of 5160.000. provide the City owned land at no
cost and extend utilities and specially assns each parcel for Its appropriate share (including the f rture park
on the Katsmwck property).
III. Needs Ausument
Whenever we review a request for public assittanee on behalf of a City, we first attempt to measure by
industry standards if a project actually needs the tulstance. Based upon very preliminary information, we
have completed a review of Mr. Komarek's financial plan and determined thu the requested level of
assistance docs appear to be warranted.
The basis for this finding is as follows: Davaiopers of this type of housing usually expect that gross income
from sales (54.230.000 in this case) kas land acquiddon, site preparation, and comuetion costs (52.640.000
as represented by Mr. Komarek) should be approxi m—ly 20%. Other costs such as project administration,
selling costs, and interest carry subtracted Routs the 20% will usually result in an acceptable return on the
project investor. For this project, without public assistance the return would be 14%. In order to actievc
200/6, the public assivaoee would need to be approidmately 5254000. Mr. Komarek is requesting $214,000
assistance (aawmimg that the City land is 554,000 in value). We are asnmtiag that the information which
Mr. Komarek has provided for this analysis is arsurato. If we proceed with the project we will require that
Mr. Komarek verify all costs.
ill. Potential AnIstatn Mathoft
The HRA has two basic options for providing assivaneo to this project with sorts veriatiam within each
option.
Thhe fins option would be to provide all of the assistance upftou. Thls would man that the City Land and
the tax increment would need to be paid ford HRA reserves or a band issue. This type of up•f m assistance
carries consMers It risk to the HRA because the 5160,000 of tax Increment asastamca folies upon the
OFOM IN MIIM[APOW, MN AND 6110001ELG,1111
2060 trorwa st Caerau. 90 bourn 804M SM . MIANOWL MN 6640-4100
TalaRllen46123f6.6291. FAX 612.2364664
MAR 04 '96 03,44Pn E LERs a R.SSMIATES
housing units being built in a timely manner. If the pmject does not manialize or if tax= are not paid on
some of the units, the HRA is at risk of losing its invesnnent. We could structure some security messures
to minimize some of the risk for the HRA such as a personal guarantee ftom the developer, tax liens on the
property, and a minimum market value for dw pmjem
The second option would be to provide the S160,000 in a pay-as-you-go format and the City land with up-
front assistance. To mitigate the cash floc impact fair the devekrper, we would also recce mend in this
situation that the spwW aneasm m be alWwsd to bo carr','through a sale of units instead of being pro-
paid. This option offers less risk to the HRA Zhao the first option but obviously makes the ps ojetit nae
difficult for the developer. To offer cane potentia' for repayment of the assistance for the City land, we
would recommend that the HRA atjjtM the tax'nanown payment sehedulo to allow the HRA to capture
20% to 40% of the tax increment instead of 10% ones all of the units are completed.
IV. Summary
This ptgjm does require ass's to occur given the east of redevelopment As' mp,rnat as the amount
of assistance is the method of delivery and how the HRA is seamed sgainst possible'onto
PRAIRIE WEST PLUS
Source in Use Statement
• Twelve Units as 'Twin Homes Prepared by John Komarek
` 0 Eighteen Units as Quad Townhomes February 23, 1996
Prairie
HRA TI
Monticello
Parameters
Total
West
Zone
City rratzma•ek
Land Procurement
8434.000
8190,000
8190,000
854,0 N/A
Survey A Platting
35.993
12.000
13,333
10,660
Demolition
15.200
N/A
10,000
N/A 5.200
Site Restoration
2,800
N/A
1,400
1.400
Landscaping
60.000
24,000
20,000
16.000
Private Utilities
Engineering R Administration
10.635
1,260
4.575
4,800
Public Utility
35.450
4.200
15,250
16.000
Utility Feed
30.000
12.000
10,000
8,000
Utility Hook-up
60,000
24.000
20.000
16.000
Street
40.000
10,000
12.500
17.500
Legal.
6.000
2.000
2,000
2,000
Project Development
30.000
12.000
10,000
8,000
Permitting
36,000
14,400
12,000
9,600
Carrying/ Financing
TOTAL
8790.878
8308,860
6321,088
8163,960
Number of Lots
30
- 12
1
I I
Cost Per Lot
25,600
32X10.100
2008.500
Average Cost per Lot
26,100
Target Cost Per Lot
16,500
HRA Capital Contribution
160,000
City Capital Contribution
50,000
Base Adjusted Avg. Lot
19,362
Total
I
I 104.bS44
I 58,824
I 77,100
I 90,800
PeranQSquare Feet
.32
Redevelopment Actual Value
4,230.000
1.800,000
1.350,000
1.080,000
Based on Per Unit Value
0150,000
0135,000
0135,000
�J
,-7
L 1
HRA AGENDA
MARCH 6, 1996
Is 4f. I (• �. • • • • 1 l't..•ITIMMIN 11. I . .y(Vl.y( 11 J. ' ..
1. •.111 t 111. 1 1l 1'111 • I15.5r,714-i"
A. Reference and Backaround:
RESOLUTION
As per the enclosed letter from the local Building Inspector relating to the building
at I I I West Broadway, the Inspector condemned the building following the collapse
of the roof on February 9. Being advised on February 26 that the building was going
to be demolished by the end of the week, immediate action was taken to allow the
HRA the QZim to include the parcel within a TIF -Redevelopment District in the
future if the results of the HRA study/plan so suggests or indicates. If a resolution
is adopted, Statutory provides the HRA up to three years atter demolition of the
building for the parcel to be included within a redevelopment district. If a
resolution is not adopted prior to demolish, the HRA waives its option. An example
is the case of the old Gille property.
PRE -DEMOLITION DEVELOPMENT AGREEMENT
Basically, and according to the Kennedy & Graven Attorney Dan Greensweig, the
Pre -Demolition Development Agreement is a non -enforceable agreement by either
the HRA or Mr. Fluth. The resolution serves as a document to meet the
requirements of the Statutory and as a verification if so inquired by Auditors.
Although the agreement is prepared in lawyer's talk, the agreement says the HRA
and Fluth agree to sit down and negotiate an agreement. The agreement allows 45 -
days for negotiation which can he extended for ar. additional wt -days if acceptable
by both ponies through a written agreement.
The February 27 IIRA meeting was canceled as insurance and title information
relating to the property was incomplete and Mr. Fluth is out-of-town the week of
March 4th. Mr. Fluth plans for demolition the week of March 11. Therefore. the
HRA is now requested to consider adoption of the resolution.
It. Alternative Action:
A motion to adopt the resolution finding certain property occupied by a
structurally substandard building and authorizing a pre -demolition
development agreement hetween the HRA and Barry Fluth.
Page I
HRA AGENDA
MARCH 6, 1996
2. A motion to deny adoption of the resolution and agreement.
3. A motion to table any action.
C. Recommendation*
Staff recommends Alteroative Action No. 1. subject to the agreement and execution
of the pre -demolition agreement by Barry Fluth. Alternative No. 1 provides the
HRA with the QR1im to include the parcel within a redevelopment district if so
needed.
D. Su=rtrtino Dan:
Copy of the letter to Mr. Fluth, resolution, agreement, and map outlining the
prey.
Page 2
250 East Broadway Feb 23, 1996
P. O. Box 1147 ��'
Monticello, MN
55362-9245
Phone: (612) 295.2711
Metro: (612) 333.5739
Fax: (612) 295-4404
Mr. Barry Fluth
206 West 7th Street
Monticello, MN 66362
Re: Former Master's Home Furnishings building,
111 West Broadway, Monticello, MN
Dear Mr. Fluth:
The building roof that collapsed on your former Master's Home Furnishings building at
111 West Broadway on Friday morning, February 9, is experiencing some additional
problems since the major portion of the roof has collapsed. The front portion of the
building now has a bow in it. Furthermore, the back portion of the building is now
experiencing some problems with additional weight being placed on the remaining intact
roof portion from the recent warm weather causing the snow melt on the roof, and also the
rain we've experienced the last couple of days.
1, Gary Anderson, Building Official, City of Monticello, am hereby condemning the
building located at 111 West Broadway, Legal Description Lots 7 & 8, Block 62 except the
southeasterly 16.6 -feet of the southwesterly 90 -feet of Lot 8, original plat addition in the
City of Monticello.
You are hereby ordered to respond to me no later than 10:00 a.m. on Monday, February 26,
1996. Proceed with action to have the remainder of the roof, and the rear and the front
wall sections of the building torn down.
Once these areas are torn down, the debris is to be immediately removed and disposed of
at an approved demolition landfill.
Office gtPuW worb. 90 OWCoum Rd, Moatkol" MNSWU • Am. (612) 21S3170 - Ram: (912) 295 J170, ul. 1
Mr. Barry Fluth
Page 2
February 23, 1896
If you have any questions, please feel Gee to contact me.
Sincerely,
CITY OF MONTICELLO
Gary Anderson
Building Official
GA1glk
ca John Bombeck, Citizens Security Insurance
Brad Fyle, Mayor
Rick Wolfateller, City Administrator
Jeff O Neill, Assistant City Administrator
011ie Koropchak, Economic Development Director
John Simola, Public Works Director
Steve Johnson
THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO
RESOLUTION NO.
RESOLUTION FINDING CERTAIN PROPERTY OCCUPIED BY A
STRUCTURALLY SUBSTANDARD BUILDING AND AUTHORIZING A
PRE -DEMOLITION DEVELOPMENT AGREEMENT BETWEEN THE
HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY
OF MONTICELLO AND BARRY FLUTH
WHEREAS, Barry Fluth (the "Developer") is the owner of certain property
within the City of Monticello described as follows:
Lots 7 Q 8, Block 52, except the southeasterly 16.5 feet of the
southwesterly 90 feet of Lot 8, original plat addition in the City of
Monticello, County of Wright, Minnesota
(the "Property"); and
WHEREAS, the Property is currently occupied by a structurally substandard
building as defined by Minnesota Statutes, Section 469.174, subd. 10(b) (the
"Building") , which the Developer intends to demolish; and
WHEREAS, the Developer and the Housing and Redevelopment Authority in
and for tho City of Monticello (the "Authority") desire to enter into a development
agreement prior to the Developer's demolition of the Building; and
WHEREAS, the Developer and the Authority Irish to agree upon the type,
scope, and timing of the development of the Property (the "Project") and the types
and amounts of assistance to he provided by the Authority to the Developer with
respect to the Project; and
WHEREAS, the Developer and the City wish to memorialize their desire to agree
upon the terms and conditions by which the Authority will provide assistance to the
Developer in return for the Developer's undertaking and completing the Project.
NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment
Authority in and for the City of Monticello, Minnesota as follows:
1. The Authority finds that the Property is currently occupied by a
structurally substandard building as defined by Minnesota Statutes, section 4G9.174,
subd. 10(b).
2. The Authority intends to include the Property in a redevelopment tux
increment financing district within three years after demolition of the Building.
3. Upon filing the request for certification of the Property as part of a
redevelopment tax ineremont financing district, the Authority will notify the county
auditor that the original tax capacity of the Property must be adjusted as provided
by Minnesota Statutes, son.tion 469.177, subdivision 1(h).
4. The Pre -Demolition Development Agreement attached as Exhibit A is
hereby incorporated herein and approved, and the Chair end the Executive Director
of the Authority aro authorized to undertala all actions necessary to execute the
Pro -Demolition Dovalopmont Negotiation Agreement on behalf of the Authority.
walotow
—100-51
4/9 97Vd olro4CCrle n1 N"AVM7 V An SN"W'"Md CC' 11 00-4L-131.1
S. The Executive Director of the Authority is authorized to make any non-
material corrections to the final pre -Demolition Development Agreement prior to its
execution.
Approved by the Board of Commissioners for the Housing and Redevelopment
Authority in and for the City of Monticello this _ day of , 1996.
Dated:
ATTEST:
Executive Director
wat010M
M0290-5)
4/L 90Vd OICOLCCZ19.0I N9AWND Q A03NN911•M011d b6. 11
PRE-DEWLITION DEVELOPMENT AGREEMIDIT
THIS AGREEMENT dated this day of '1996
by and between the Housing and Redevelopment Authority in and for the City of
Monticello, a public body corporate and politic under the laws of the State of
Minnesota ( the "Authority") and Barry F luth ( the "Developer") :
WITNESSETH:
WHEREAS, the Authority desires to promote development of the property
described as:
Lots 7 & 8, Block 52, except the southeasterly 16.5 feet of the
southwesterly 90 feet of Lot 8, original plat addition in the City of
Monticello, County of Wright, Minnesota
( the "Property") ; and
WHEREAS, the Property is currently occupied by a structurally substandard
building (the "Building") as defined by Minnesota Statutes, section 469.174, subd.
10(b); and
WHEREAS, the Developer may develop the Property (the "Project"); and
WHEREAS, the Authority desires to assist the Developer in development of the
Property, provided that a satisfactory agreement tan be reached between the parties
to establish the type and level of public assistance to be provided by the Authority
to the Developer with respect to development of the Property.
NOW, THEREFORE, In consideration of the mutual covenants of the parties
hereto, 1T IS AGREED between the parties as follows:
1. Pursuant to this Agreement, the Developer will demolish the Building
and remove any debris in accordance with all applicable laws, ordinances, rules, and
regulations.
Contingent upon successful negotiation of;
(a) Terms and conditions concerning the typo, scope, and timing of
construction of the Project by the Developer and of any public improvements
to be constructed in connection with the Project;
(b) A statement of the nature and amount of any security to be
furnished to the Authority to protect its financial investment in the Project
before and after completion of the Project;
(c) Types and amounts of assistance to be provided by the Authority
to the Developer; and
(d) Such other terms end conditions as may be agreed upon by the
par -des,
WUlOO970
largo -e+ 1
L/L 30Vd 0I1:04cce 113 -(ti N:IAVK3 V
Aa9NN9N-NeMd LLIII 013-LC-q3d
the Authority will provide such assistance as has been agreed upon by the parties
and the Developer will undertake and complete construction of the Project, all as set
forth in a definite contract to be entered into by the parties.
3. Unless otherwise extended by written agreement between the parties,
negotiations hereunder shall continue for a period of 45 days following execution
hereof. The Authority may extend the term of this Agreement for an additional 90
days by giving written notice of their desire to so extend the Agreement to the
Developer within the initial 45 -day period. If negotiations between the parties are
not successfully completed within the period of this Agreement, as the same may be
extended, the obligations of all parties to one another shall terminate and neither
shall incur any obligation to any other.
4. During the term of this Agreement, the Developer shall provide to the
Authority the information the Authority reasonably deems necessary to evaluate
whether and how to provide the assistance contemplated by this Agreement. Such
information may include, without limitation:
(b) a preliminary design proposal and a cost analysis projection for
the design and construction of the Project. The proposal shall show the
location, size, and nature of the Project, including floor plans, outline
specifications, and other graphic or written explanations of the Project, shall
be accompanied by a time schedule for all phases of development, and shall
show and be compatible with any public improvements to be constructed
adjacent to or as part of the Project;
(c) other preliminary economic feasibility studies, income and
expense projections, and economic information;
(c) a Project financing plan that shows the Developer's ability to
finance the Project and that the Authority's investment will be protected;
(d) documentation identifying the legal entity constituting the
Developer, the identity of the Developer's principal owners, and the legal
relationship of such principal owners; and
(c) information or financing statements that the Authority may
reasonably request concerning each person orentity comprising the Developer
end evidencing the financial responsibility of such person or entity and the
nature and extent of such person's or entity's financial interest in the
Developer and the Project.
S. It is expressly understood that the Authority's provision of assistance
and the Developer's undertaking and completion of the Project is subject to the
determination by both parties, in light of oil the facts and circumstances, that such
actions are in the beet interest of the parties.
WGIO TO
IaI90-e3
1./C anVd OICOLc CCIo-nI N:IAVM'J V An3NN311'Ne MA CC.I I L10-cC r,3d
IN1MM;SWMMEF.totePisbmmsadtba I*b&11"4
_ and deltwetad as of 00 dsp and pear Brat &bows WItt-
HOUMG AND BBDBPItLOPMENT
AUTHORITY IN AND FOR THE CITY
OP EdO)mcsLw
Its chair
Sp:
Its gloacvtlwe Dtseotar
STATS OF }.
COUNTY OF y
`
The toffs bMU2 at V" doh b1 dor& c tbts dap at
IM. by I l aWan0d 41OIVna8°rap`n�l)t,'tLnA
Epaunw city os, lies b&bw d ebo pttt mow.
aad for the City of lsoeittaaUo.
fi
.onto d
A/t► wavd M1AYM0 w AMtU1OMM'MO&d CO -11 08-46-031
BARRY FLUTH
Barry Fluth
STATE OF )
)SS.
COUNTY OF )
The foregoing instrument was acknowledged before me this _ day of
, 1996, by Barry Fluth, an individual.
Notary Public
This Instrument Was Dratted By:
KENNEDY 0 GRAVEN, CHARTERED
070 Pillsbury Canter
Minneapolis. blinnosoto 58402
012-337-9300
mos000+o
MIG -S)
Lig HDtld 01COLECEI O.OI NBAtltlD • AO8NN811•NOtfd EE.11 00-4E-O9d
HRA AGENDA
MARCH 6, 1996
a) Eminent Domain proceedings - On February 24, Komerak informed me to
notify the HRA Attorney to proceed with eminent domain of the Katzmarek
property as Katzmarek remained unreceptive to discuss or negotiate
acquisition terms. Mr. Katzmarek has heard rumors that the City or the HRA
was interested in his property; however, does not believe it. Komerak felt,
perhaps, upon Mr. Katzmarek being served with the petition notice, he may
changeWs mind. An update from Attorney Corrine 7inomson is enclosed.
b) HRA levy - Upon the request of the HRA Chairperson, Publicorp estimated
the annual maximum dollar amount an HRA levy would generate. See
enclosed memo.
C) Approval of monthly bills - See enclosed bills.
Page 1
AUW.p rl U.
'Dltm A. Auer
am M. QATTINS"
Aomw IL DATrm
a.Olml J. 111JUIL
Jon a OSAR
DIM J. GRLVUWDO
D►mmJ. rCal[I
e+ Alin L. Uft con
Jon IC ULltmr6 JL
Room J. Ullwu.
Q06nr C. LAM
JArm 6L 6T0,01421301
corltaa B. WON=
February 29, 1996
Wright Title Guarantee Co.
Attn: Helen
141 East Broadway
Monticello. MN 55362
KENNEDY & GRAVEN
CHARTERED
JAIM J. Twfa
470 P@fbtwJ Centrr MbWWA6 Nftwafe 336a
LAUT M. concern
(612) 337 -WW
Roxmm L comma
Jolt V. TAM
FWAMRe (612) 337.9110
DAVID L. GRAwn tion4wll
4 COUMQI
O18
WRITDIRECT DIAL
Qom i C. C.21"
Ro6u7 L DA"am
IIIWAXGTD 11. LAW
337-9217
Promo a OL"
CITMA.PLa
T. JAW SALWX
BY FACSIMILE
441-5402
RE: Order for Owner's Policy
Dear Helen:
I called your office earlier today and was told to fax my order to you. Our firm represents the
Monticello Housing and Redevelopment Authority, which intends to acquire certain property in
Monticello by eminent domain. In order to prepare the petition in condemnation. I will require
a commitment for an owner's policy of insurance. Upon completion of the proceedings, the HRA
will purchase an owner's policy.
71e property is residential property located at 1400 West Broadway in Monticello, Wright
County. 71te legal description is enclosed. 'Rte proposed insured is the Monticello Housing aid
Redevelopment Authority, a public body corporate and politic under Minnesota law. The current
owner is Robert J. Katzmarek.
Please send the title commitment and any invoice for abstract searches to my attention. Your
bill for the policy premium should be sent later, after the acquisition price has been determined.
Sincerely,
Conine H. Thomson
cc: Olive Koropchak
CAM 101 uo
laws -e
LEGAL DESCRIPTION
A tract of land in Lot B of the South Half of Section 3, Township
121, Range 23 described as follows: Begin at the intersection of
the southerly line of Trunk Highway No. 152 and the north litre of
said Lot B; thence southeasterly along the said southerly line of
Thunk Highway 152 a distance of 315 feet; thence deflect right 90°
for a distance of 205.7 feet to the north line Great Northern railway
right of way; thence Northwestely along said railway right of way,
a distanoe of 534.9 feet; thence Easterly to the point of beginning,
containing 2.08 acres more or less.
PID 155-500-033403
Property Address: 1400 West Broadway
e",b,t"
wit �b•4
5c#t
MAR 04 '% 13 01 KENNEDY & GRRVEN
Ail.aA. Y Ir
R1NIrar A- 4W1I
aa� %L DA rrtttON
RONALD H. RArrV
bru"t" A 044AM
JOHN R. WAN
DANtat 1. GatL11 —
DAvM J. Kaft9w
C'NAtla L LA r'YR
JOHN AL WlrmL A.
ht.sm J. LLVDALL
Roam C. L4
JAMP M. LTtotUlTa
Coup[ a TUO1.oN
March 4, 1996
KENNEDY & GRAVEN
C•HARTEKLU
470 Pabbw/ Ca . Mba pull. MmOe Aa 55"
16x3) 337.DJ00
F.aftaRr 16171337.9310
WRITCJt'R DIRECT DIAL
337-9217
BY FAIT AND MAIL
Olive Koropchal
Bl:onomic Development Director
City of Monticello
P.O. Box 1147
Monticello, MN 55362-9245
RE: Acquisition of Katzmarek Property
Dear 011ie:
P.2
JA1/41. TWO. M
L."T AL wvinuu 1
DoraaL WaAW
lot Y. YAAT1
DAVIDLGUVa1U 01)
W O7oNM
ROW" C CAXIA"
wrLwaloN H. L.A.
ctwm A. PUttol.
L J.AT sA
This is a status report on the acquisition of the Katxrnarek property at 1400 West Broadway in
Monticello. This letter addresses both the timing and some of the estimated costs related to
acquisition of the property.
Title Work
In order to prepare the petition in condemnation, we first need to obtain information concerning
the title to the propery: f have contacted Wright Title Guarantee Co. in Monticello and have
✓ ordered an owner's policy of title insurance, as you and I previously discussed.
The cost of thepremium is based on the purchase price. which we will not have until a final
award is entered. However. a S100,000 purchase price would result in a $425 premium. In
addition• there is the cost of the abstract search, special assessment search, and judgment search.
' 1 The judgment search is $10 per name searched; the special assessment search is $35, but you
nwy be able to obtain that search directly from the City of Monticello at no cost. 1 am still
Ar.
awaiting an estimate regarding the abstract cost, which will vary depending upon the number of
r' times the property has been sold or encumbered. I spoke with the title company representative
this morning, and she indicated drat within the next day she will have an estimate of that cost.
as well as an estimate of when the commitment for title insurance will he ready.
After receipt of the title commitment, we should be able to prepare and file the petition in
condemnation within two weeks.
Relocation Costs
Enclosed is a copy of a letter received from Canworth, Inc. Conworth estimates their fees at
$950 to $1,200 and also estimates that the relocation benefits for the project, asswning it to be
a typical residential relocation, could range from $20.000 to $33.000.
We will need to engage the services of a relocation consultant within the next two weeks. Unless
I hear from you. we propose to use Conworth. Inc.
C"1o121L
4111$-1
MAR 04 '% 13:01 KENNEDY & GRAVEN P 3
Olive Koropchak
March 4, 1996
Page 2
We will need to engage the services of a relocation consultant within the next two
weeks. Unless I hear from you, we propose to use Conworth, Inc.
Appraisal Costs ' - I G / --,w „, , 9,
We propose to use John Farrell as the appraiser for the project. Mr. Ferrell is
located in Rockford and has epyraised many properties in Wright County. I have left
a telephone message for Mr. Farrell but have not yet received a return call. I will
provide you with his estimate as soon as I hear from him. It is not necessary that
we immediately retain an oppraiser, but I would like to do so before the petition is
filed.
Let me know If you have any questions concerning the matters addressed in this
letter.
Sincerely,
Corrine H. Thomson
Enclosure
cc: Steve Hubul (w/enc)
9395-• 51&
MRP. 04 '96 13: 01 kENNEDY & GRAVENQ 0 C'oAMOM. LNC P. a P02
J CONWORTH, INC.
4725 Enoslsior ead-
surae zoo
Mkv*apds. MN 55416
(612) 829-0014
FAX (812) 929-0368
Pebruary 21, 1996
Ms. Corrine Thomson
Attorney at Lar
Kennedy i Gravest
470 Pillabury Center
ttirutcdpella, HN 75402
Subject: Proposal for Relocation Corsultirg services
Housing i Redov-elopmat, Authority of Monticello
Dear Ms. Thomson:
'Blank you for the opportunity to submit a proposal to you
regarding relocation assistance to the Mousing a Redevelopment
Authority of Monticello. 'Phis letter is in response to yeas
request for proposal, are will also provide you with some
information an our firm.
Conworth, Inc., a woman -owned enterprise, was formed in 1989 by
persons who had worked In the acquisition/relocation field ror
many years. The firms statt consists of five consultants with
over e5 Years of combined w(perlence in residential and business
acquisition/relocation and related roal estate anivltlea. our
services owmantrats on the requiramente of tae uniform
Relocation Assistance and Real Property Acquisition Policies Act
and Minnesota Statute 117.52.
conworth•a relocation specialist& pride themselves on their
ability to listen and communicate, thus enabling both the
acquiring agency and urs displacco occupants to go through a
potentially dlffioult time with bettor understanding and
ocoparatLon.
A reference list is onclosod with this letter, for your review.
Please tool tree to contact any of thew agencies, as you may
wish, for references.
conworth•s standard hourly charge for our relocation specialists
is 660.00, and as bill on tae earls of Quarter-hours. Thin
hourly tea includes all support services such as sscrottrlsl,
phone charges, and mileage. however, it Is Conworth'a policy to
bill our clients for only the time actually required to provide
the necessary rolocation wistenco services. In this case,
Conwortn, Inc. proposes to complete the relocation activities for
your homeowner parcel for a too in the range of 8950.00 to
61,]00.00. 5&
M42 04 '% 13:02 KENNEDY 8 GIZ3 , . CONWORM. INC P.5
Me. Corrine Thomson
February 21, 1996
Page i
In regards to the actual relocation costs for the project, we
estivate that theca caste say tall in a range or $26,000.00 -
675,000.co, ror moving coats, replaaesent housing costa, and
other eligible e>geases.
This estimate is based on averages of cases we have worked with
In the past. P1esM_
Cwmrto, Iao. has not viasod the subject property ar completed a
maruet study to determine the cost of comparable replace nt
homes. This figure could and probably will change, depending on
the oubjeet some, Comparable replacement biomes, interest rates,
and many other factors.
it you have any Questions regarding our services or this
proposal,please don't hesitate to call sin. we look rosrard to
wordng with you and providing the Houaing a Redevelopment
Alltbarity or Monticello with relocation aomoulting services.
1 I
leen Qel
0perati Director
sl
Enclosures
J CONWORTti, INC.
POJ
so
MAR 04 '96 13:02 KENNEDY & GRAVEN
V WNIFORM. VC
Partial Client Listing
1. City of Richfield
Bruce Palsenorg, RRA coordinator
6700 Portland Ave ue
Richfield# M 55937
Phone: 861-9700
2. Brooklyn Park RRA
Stacie Kvilvaag, Redevelopment Specialist
5200 051:11 Annus North
Brooklyn Park, MM 55443
Phones 493-8089
3. County of Anoka, Right of May Dept.
Attentlow Mika Kelly, Chief
Right Of May Agent
2100 3rd Avenue
Anoka, MN 55303-7265
Phones 323-5521
other references avilable upon request.
% CONWORM INC.
P.6 PO4
FEB 26 '96 05:25PM EHLERS & ASSOCIATES P•212
EMM Md ASSOCIOU, ft.
lEAOEaa IN PUSIIC FINANCE
'40
February 26, 1996
TO: 011ie Koropehak. City of Monticello
FR: Mark Ruff
RE: HRA Levy
As requested, we have calculated the maximum I IRA levy potential for the Monticello HRA The maximum
rate is .0131% of market value. Monticello currently has a taxable market value of 4S2,347,500. Therefore,
the maximum levy would be 559,233.
Even though the maximum rate is calculated on the basis of market value, the levy would be spread against
tax capacity.
Please call with any questions or comments.
1. yam• '����v-� :�".1,:Q.
n,I_
L
OFFICEW MWarEAP01.16. AIN AMO BAOOKWILD, cul
2050 Norval Center , 00 Soup Seventh Sbact . Mlnnaap IL MN 55402.4100
Telephone 612-3394291 . FAX W-339•0554
KENNEDY al: GRAVEN
Chid
200 Soudt Shth Saes, Sutra 470
Khxpdf, MN 55402
(612) 3379300
February 13, 1996
City of Monticello
PO Box 1147
Monticello, MN 55362-9245
W90-00052: Monticello Community Partners
Invoice H 8011
Through January 31,1996
For All Legal Services As Follows:
01/22/96 SJB Research 501(cx3) issues; open file; phone call
1.50
193.50
with 0, Koropchak; phone call with M. J. Brenden
m nonprofit corporation issues
01/24/96 SJB Phone call with O. Koropchak re conflict and
1.00
129.00
501(cK3) isw s; research same
0125/96 SJB Draft memo re nonprofit organizations; research
1.50
193.50
same
01/31/96 SJB Phone call with O. Koropchak re corporate
0.25
32.25
orgaai7ation
Total Services:
$
548.25
Attorney Summary
Stephen Bubul 4.25 Qa 129.00/hr
548.25
Taal Services And Disbursements: S 548.25
O2c4O4�o�a� Wh" o► 4�rd /�
�Mf MtllMlrb / �
February 13, 1996
City of Monticello
PO Box 1147
Monticello. MN 55362-9245
MN190-00031: Tapper Redevelopment
Invoice # 8008
Through January' 31,'1996
For All Legal Services As Follows:
01/31/96 DJd Tapper amendment 0.60 60.00
01/31/96 SJB Phone call with m Koropchak re Tapper contract; 0.30 38.70
review file re same
Total Services: $ 98.70
�imorl. coft dWWd
4��ewa
Attorney Summary
Daniel J Grcensweig 0.60Q 100.00/hr 60.00
Stephen Bubul 0.30g 129.00/hr 38.70
Total Services And Disbursements: $ 98.70
S0
KENNEDY 8t GRAVEN
meed
200 South Sbdi Sw% kft 470
/i
t,�MW 55402
ll�
(612) 3379300
February 13, 1996
City of Monticello
PO Box 1147
Monticello. MN 55362-9245
MN190-00031: Tapper Redevelopment
Invoice # 8008
Through January' 31,'1996
For All Legal Services As Follows:
01/31/96 DJd Tapper amendment 0.60 60.00
01/31/96 SJB Phone call with m Koropchak re Tapper contract; 0.30 38.70
review file re same
Total Services: $ 98.70
�imorl. coft dWWd
4��ewa
Attorney Summary
Daniel J Grcensweig 0.60Q 100.00/hr 60.00
Stephen Bubul 0.30g 129.00/hr 38.70
Total Services And Disbursements: $ 98.70
S0
HRA AGENDA
C MARCH 6, 1996
L
S:
td
A
Enclosed is the copy of Runs who were mailed an RFP and those with an askerik
are the ten firms or teams who attended the HRA informational meeting on
Fdmuuy 14. As of 2:00p.m.,today, March 4. no RFPs have been submitted. Don't
be. alarmed as City Staff anticipated delivery time approximately 4:OOp.m.
Four MCP Boardmembers: Linda Smith, Lois Maus, Dick Frie, and Al Larson will
begin to review the RFPs and check reference on Tuesday, March 5, 9:00 a. in. This
to expedite the process. They will discuss and make recommendations at the HRA
meeting. Also enclosed is a copy of the selection criteria used for rating the firms.
Page I
I
1. Dahlgren, Shardlow & Uban
* 300 1st Ave North 0210
Mpls MN 55401
2 Sanders, Wacker, Wehrman, Bergly
'� Bill Sanders
365 East Kellogg Blvd
St Paul MN 56101
3. Herb Baldwin Landscape
* Architects
4196 West 185th St
Jordan, MN 55352
4.
Close Landscape Architecture
Bob Close
610 Northwestern Building
275 East 4th Street
St Paul MN 56101
5.
Kurt Mayer . S E ri
3535 Vadnais Center Drive
SL Paul, MN 65110
6.
Camiros
*
Joyce Levine
6647 Grand Ave S
Mple MN 55419
7.
Barton Ashman (Red Wing)
18. •
I I 13rd Ave S 0350
Mpls MN 65401
8.
SRF Consulting Group, Inc.
Barry J. Warner
One Carlson Parkway North
Suite 150
Mple MN 66477.4443
9.
Hoisington Koeghu Group, Inc.
Micheal Schroeder
7300 Metro Blvd
Suite 625
Edina MN 55439
10.
Hyatt Palma
Doyle Hyatt
1600 Prince St
Suite 110
Alexandria VA 22314
DWMVRVP.US: VIAW
11.
Ehlers & Assoc.
Rusty Fifield
2950 Norwest Center
90 S 7th Street
Mpls MN 65402
12.
BRW
Thresher Square
700 3rd St S
17.
Mpls MN 55415
13.
Ernst Associates
122 West 6th Street
Chaska MN 55318
14. Northwest Associated Consultants,
* Inc.
5776 Wayzata Blvd
Suite 566
St Louis Park MN 55416
169t.
Duane Thorbeck
Thorbeck Architects
1409 Willow St
Suite 0600
Mpls MN 55403
16.
Schrieber Anderson
1435 E. Main St.
Madison, WI 63703
17.
Richard McLaughlin
Town Planning Collaborative
3344 Hennepin, Ave. S.
Suite 200
Minneapolis, MN 65407
18. •
William Zerfas
LI1B Engineers & Architects
250 Third Avenue Notch, Ste 450
Minneapolis, MN 55401
+ - t V - 0\ to
o.V.%o,*% e h
Mea, wq
PLANNING GROUP SELECTION CRITERIA
MCP DOWNTOWN/RIVERFRONT STUDY
Name of Planner. Rater.
Point. Rating / Notes
Poor - Excellent
Criteria 1 5
1. Demonstrated understanding and articulation of:
• goals and scope of the project
• assumptions underlying the project
• problems anticipated in completing the proiect
2. Proposed approach to the project:
• method or approach toward
• MCP/ Theresa WaahbunVConsultant interaction
• process for obtaining public input - format & degree
MCP subcommittee input
City Commissions and Council
General city input
3. Level of understanding of Monticello's unique characteristics:
• understanding of the organizational framework
• preliminary understanding of strengths or weaknesses
4. Experience in preparing multi -disciplinary revitalization
studies:
• experience with communities similar to Monticello
• examples of plans that have been implemented
5. Level of experience in each discipline - Reputation of subs:
• traffic engineer
• marker
• urban desioVarchitecture
• nvUWl
6. Quality of presentation --was it geared to Monticello?
Or boiler plate?
7. Fees:
• Is the proposal geared to hitting an artificial target
fee amount? (bad) Or does the fee reflect the cost to
truly accomplish planning goals? (good)
G
RFPCRrrEdd& 3/1/90