HRA Agenda 05-15-1995AGENDA
v MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Monday, May 15, 1995 - 6:30 p.m.
City Hall
MEMBERS: Chairperson Al Larson, Everette Ellison, Tom St. Hilaire,
and Brad Barger.
STAFF: Rick Wolfsteller and 011ie Koropchak.
HRA CANDIDATES: Roger Carlson (6:30 p.m.)
John Duffy (6:45 p.m.)
6:30 p.m.
1. INTERVIEW OF CANDIDATES FOR COMMISSIONER OF THE HRA.
7:00 p.m.
2. RECOGNITION OF BEN SMITH, RESIGNED HRA COMMISSIONER.
3. MEETING WITH CITY COUNCIL, PLANNING COMMISSION, AND PARKS
COMMISSION MEMBERS FOR A REPORT OF THE UPDATED MONTICELLO
COMPREHENSIVE PLAN AND ITS RELATIONSHIP TO THE EXPENDITURE OF
POOLED TIF DOLLARS. 1
8:30 p.m. -
4. CALL TO ORDER OF HRA MEETING.
5. CONSIDERATION TO APPROVE THE APRIL 5, 1995 HRA MINUTES.
6. CONSIDERATION TO SELECT A CANDIDATE FOR RECOMMENDATION TO THE
CITY COUNCIL FOR APPOINTMENT ON THE HRA.
7. CONSIDERATION TO REVIEW FOR MODIFICATION THE PROPOSAL TO
ENLARGE THE BOUNDARIES OF REDEVELOPMENT PROJECT NO. 1 AND THE
PROPOSED BUDGETS FOR TIF DISTRICT NOS. 1-1 THROUGH 1-11 AND
DISTRICT NO. 1-19, ALL LOCATED WITHIN REDEVELOPMENT PROJECT
NO. 1.
8. CONSIDERATION TO APPROVE A RESOLUTION AUTHORIZING PRG TO
PREPARE THE MODIFICATION OF REDEVP.LnrMP.NT PROJECT NO. 1
INCLUDING THE ENLARGEMENT OF ITS BOUNDARIES AND THE
MODIFICATION OF THE TIB PLANS (BUDGETS) FOR TIF DISTRICT NOS.
1-1 THROUGH 1-11 AND DISTRICT NO. 1-19.
9. CONSIDERATION TO APPROVE A RICHT-OF-ENTRY TO ENTER LOT 5,
BLOCK 3, OIP.
` Continued
10. CONSIDERATION TO APPROVE A RESOLUTION AUTHORIZING PRG TO
PREPARE THE MODIFICATION OF REDEVELOPMENT PROJECT NO. 1,
MODIFICATION OF THE TIP PLANS FOR TIF DISTRICT NOS. 1-1 THOUGH
1-19, AND THE ESTABLISHMENT OF TIF DISTRICT NO. 1-20 AND THE
TIF PLAN FOR TIF DISTRICT NO. 1-20.
11. CONSIDERATION TO REVIEW COMMENTS OF A REFERENCE CHECK ON
PUBLICORP, INC. FOR FURTHER DIRECTION.
12. OTHER BUSINESS:
a) Acceptance of PRG and Holmes & Graven bills.
b) Other
13. ADJOURNMENT.
MINUTES
HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, April 5, 1995 - 7:00 p.m.
City Hall
MEMBERS PRESENT: Chairperson Al Larson, Vice Chairperson Ben
Smith, Tom St. Hilaire (tardy), and Brad
Barger.
MEMBERS ABSENT: Everette Ellison.
STAFF PRESENT: Rick Wolfsteller, Jeff O'Neill, and 011ie
Koropchak.
GUESTS: Mark Ruff and Sidney Inman, Publicorp, Inc.
Kent Johnson, Ehlers and Associates, Inc.
Steve Bubul, Holmes & Graven.
1. CALL TO ORDER,
Chairperson Larson called the HRA meeting to order at 7:00
p.m.
2. CONS;DERATION TO REVI11W! A PRELIMINARY DEVELOPMENT CONCEPT FOR
HRA LOT 5. BLOCK 3. OIP.
The outstanding loan balance for Lots 5 and 6 within TIF
District No. 4 (IKI) is approximately 890,000 and since the
life duration of the district has expired, there is no
revenue. The interest rate on the HRA loan which was borrowed
from the City is 8%. The HRA owns Lot 5 (6.6 acres) and Ron
& Dee Johnson own Lot 6 (5.2 acres).
Developers Dean Hoglund and Kcn Schwartz are looking for
Industrial property to construct a 15,000 sq ft building for
an undioclosed tenant. The tenant is an existing production
company. The company currently employs 28 full-time
individuals and anticipates to hire an additional 10-12 within
two years. In order to caehflow the project TIF is proposed
to be utilized to reduce the lease rates. Rates of 82.80
square foot (triple net) for year one and 83.50 in years two
through five are needed. The company's profitability has
turned around since its purchase from tho previouo owner. The
production company plane to purchase the building in five
years.
After discussion of the lot's worth, Tom St. Hilaire made a
motion to accopt a purchase price of 860,000 for Lot 5, Block
3, DIP. The offer expires in 90 days and does not include the
use of TIF. Brad Barger seconded the motion and with no
further diecueolon, the motion passed 4-0.
Page 1
HRA MINUTES
APRIL 5, 1995
INTERVIEW OF PUBLICORP, INC. WITH MARK RUFF AND SIDNEY INMAN.
Mark Ruff introduced Sid Inman. Mark has been with Publicorp
for seven years and Sid for eleven years. Both, had
previously worked in the public sector. Publicorp's focus is
Education, Housing, Economic and Redevelopment, TIF, contract
followup, and credit analysis. With the recent merger of
Ehlers and Associates, Inc. comes an additional focus and 60
years of experience in selling of bonds.
Publicorp works as a two-man team so a backup person is always
available and familiar with projects. Monthly billings are
itemized on an hourly rate ($105 per hour), no addition for
clerical, no mileage for Monticello, and generally do not have
contracts. A small TIP project would be approximately $2,000,
fees are negotiable or can be fixed. Turn around phone time
is within two hours.
The "but for" is handled through a response of the risk
options: bank, more sources, or what sources.
Publicorp does fiscal impacts for land use/public
improvements/ capital improvements, etc. Kent Johnson informed
HRA members that joint city/school district/community projects
with AA rating decrease interest rates. If an HRA owns a
community building and sells bonds or if pooled TIP dollars
are used as equity into a community project, financing terms
are lowered.
Chairperson Larson thanked Mark, Sid, and Kent for their
attendance. Commissioners response: Tom, Ehlers' first-class
outfit; Brad, very professional: Rick, use on trial basis;
Ben, very impreoslve/wide range of oerviceo; Jeff, wide range
of services/good responses; and Al, excellent presentation.
The HRA made no decision and requested Koropchak call
communities of equal size for a reference chock. Mr. St.
Kilaire felt the HRA had received Ito monies worth from PRO up
until o year or year and one-half ago.
Mr. O'Neill informed HRA members that the Minnesota Sports
Federation will begin a location study the end of April for a
two -million dollar arena project. The project may be more
viable as a joint project between the school, community, and
the federation. Monticello is one of the oiteo within the
study.
Pago 2
HRA MINUTES
APRIL 5, 1995
A clarification or definition of the role between Ehlers and
Publicorp is needed, as the City utilizes Springsted as bond
consultants. The City is satisfied with Springsted and
Springsted has the historical data of the City of Monticello.
d. CONSIDERATION TO ACKNOWLEDGE THE RESIGNATIONS OF HRA MEMBERS
FROM THE MONTICELLO SENIOR HOUSING ALLIANCE, INC.
Tom St. Hilaire made a motion acknowledging the letter of
resignations to the Monticello Senior Housing Alliance, Inc.
from HRA Commissioners Al Larson and Brad Barger. Ben Smith
seconded the motion. Mr. Larson and Mr. Barger therefore are
relieved of any potential conflict of interests.
5. CONSIDERATION TO APPROVE THE PRIVATE REDEVELOPMENT CONTRACT
BETWEEN THE HRA, THE CITY, AND THE MONTICELLO SENIOR HOUSING
ALLIANCE, INC.
With the resignation of the two HRA commissioners from the
Alliance, the four HRA commissioners discussed the Alliance
project. Attorney Bubul informed the commissioners the
project has slowed down due to the forecasting of accounts.
Preliminary financial numbers indicate the project financing
Is light. Other options are Presbyterian Homes owns the
project; Increase TSF or the HRA owns the project so the City
can issue General Obligation Bonds; no response from the
Alliance as they lack members and staff; anc! the drafting of
the contracts/agreemento Is Incomplete.
The Private Redevelopment Contract is incomplete because the
HRA motion of February 22 was unclear. Was the $325,830 which
included $20,000 Contingency and $20,000 Administration
intended for the senior project or for the City's potential
loss of RAGA in the event the project does not qualify as a
"Qualified Housing District"? The difficulty io the $325,830
for the project keeps the rents down to qualify as a
"Qualified Housing District. If the $40,000, the aooumed 10%
administration is taken off the top to cover the City's lose
of an unqualified "Qualified Housing District", the project
financing Is on the edge. Rent limits is the issue, not
income levels. For a "Qualified Housing District", it io
projected that a percentage of the one -bedroom units must rent
for $575 per month in 1995. As incomes increase, so do ronto.
The HRA could emend the TIF budget increasing the total by
$42,000 to $387,830 thereattor would the Private Redevelopment
Contract be adjusted. Or Presbyterian Homeo could own the
Page 3
S
HRA MINUTES
APRIL 5, 1995
project, not the Alliance. Presbyterian Homes would then
appoint the Alliance members. A forecast of revenues are
needed to enhance the project.
A projected annual 10% administration of $4,200 or $42,000 NPV
over 15 years, would cover the projected HACA Loss of $33,500
NPV over 15 years.
Tom St. Hilaire reiterated his objection was strictly the use
of TIF for land acquisition and not the project in itself.
HRA members agreed to amend the TIF Budget for an increase of
$42,000 for Administration costo. It was hoped the Hospital
District would consider a project cost reduction of $25,000.
6. CONSIDERATION TO APPROVE THE EXTENDED LOW-INCOME HOUSING
COMMITMENT AGREEMENT BETWEEN THE HRA AND THE SENIOR HOUSING
ALLIANCE, INC.
Attorney Bubul explained a "Qualified Housing District" has
the same requirements as those used for Federal tax credits;
however, this project does not receive tax credits. Rents and
Incomes must be reported and recorded annually as outlined in
the Commitment Agreement; otherwise, the project is in
violation of the law. This agreement Is a commitment to ouch.
7. CONSIDERATION TO APPROVE A SUBORDINATION AGREEMENT AMONG THE
HRA. CITY, AND TRUSTEE.
Attorney Bubul explained undor this agreement the HRA
subordinoteo their rights under the Redevelopment Contract as
an inducement to the bank to enter into the indenture.
The underwriter has a problem with the conditional use permit.
The permit was approved based of the use for a multi-eenior
housing project which has limited parking needs unlike a
multi -family project. In a worst case, the trustee Is loft
with an empty building with limited parking. The HRA did not
share the same views as the Planning Commission and City
Council, and felt adjoining or shared parking woo available
with the Monticello Clinic.
Socondly, the underwriter has problems with the potential
odors from the Waste Water Treatment Plant.
The TIF Diotrict No. 1-19 needs to be certified, the budgot
amandcd. tho contract and agreements signed prior to
Page 4
HRA MINUTES
APRIL 5, 1995
Legislation changes which would not prohibit the project;
however, would add additional provisions.
Tom St. Hilaire made a motion approving modification of the
TIF Plan for TIF District No. 1-19 to increase the budget by
$42,000 for a total of $367,830 and authorizing the HRA Chair
and Executive Director to execute the Private Redevelopment
Contract, the Extended Low -Income Housing Commitment
Agreement, and the Subordination Agreement subject to no major
changes or surprises. Brad Barger seconded the motion and
with no further discussion, the motion passed unanimously.
The modification of the Plan for TIF District No. 1-19 could
be done simultaneously with and if approved, the modification
of the Plans for TIF District Nos. 1-1 through 1-11.
8. CONSIDERATION TO APPROVE THE JANUARY 26 AND FEBRUARY 6 AND 22,
1995, HRA MINUTES AND THE MARCH 16, 1996, NRA SUMMARY.
Ben Smith made a motion to approve the January 26 and February
6 and 22, 1995 HRA minutes and the March 16, 1995 HRA summary.
Tom St. Hilaire seconded the motion and with no corrections or
additions, the minutes and summary were approved as written.
9. CONSIDERATION TO REVIEW A PRELIMINARY PLAN TO MODIFY THE
BUDGETS OF TIF DISTRICT NOS. 1-1 TRHOUGH 1-11.
Attorney Bubul reported two hearings have been held in sub-
committee with regards to the proposed restriction of pooling
dollars for pre -May 1990 TIF Districto. One bill allowo for
a July 1, 1998 data to approve a plan for use of the pooled
dollars. The plan must identify project costo by line items.
Hopefully, the restriction will be eliminated; howover, to be
safe one neodo to have a plan in place.
Koropchak indicated that to meet the proposed July 1 date, the
City Council would need to approve the modification of the
plane no lotor than Juno 26, 1995. The procoss is the same as
used for the establishment of a now TIF District.
O'Neill felt it was Important for the Planning Commission to
be a part of the discussion to identify projoct costo with the
update of the Comprehensive Plan and its relationship to land
use and public improvements. Pooling dollars can be used for
transportation, utilities, community centers, etc.
Pago 6
HRA MINUTES
APRIL 5, 1995
Administrator Wolfsteller projected the surplus pooling
dollars in an amount of $2.3 million, maximizing the life
duration of TIF District Nos. 1-1 through 1-11.
NRA members discusaed the use of pooling dollars for cocential
public improvements and non -controversial issues such Fallon
Avenue Bridge, Fallon Avenue, Waste Water Treatment Expansion,
etc.
O'Neill presented a concept used by aggressive communities who
used pooling dollars as a means of equity to encourage the
approval of referendums for projects of multi -use and non -
duplication: Community centers, senior centers, etc. O'Neill
viewed this as an HRA investment to create new wealth for a
community. G., a X 4;-
p}� ' S -%s -9 S
Chairperson Larson felt therpooling dollars should return to
the taxing jurisdictions who approved the original TIF
Districts. The truth is no taxing jurisdiction lost taxing
dollars as the increased tax dollars would not have occurred
without the use of TIF.
If the HRA developed a plan modifying the pre -1990 budgets for
public improvements, the plan could serve as an indirect way
for the City to recover its HACA Loss due to the establishment
of now TIF Districts. School districts and HRAs are not
penalized; only, Cities.
HRA members agreed to use TIP pooling dollars for essential
public improvements which require no referendum; thorebye,
reducing the amount of the tax increase. HRA members did not
endorse TIF pooling dollars for non-oesential uses such as
equity to encourage the approval of referendum; whereaftor,
taxes aro ot1ll increased for essential public improvements.
HRA members were not necessarily opposed to the development of
community centers or multi-pi•rposo community projects, they
felt controversial issues should be by referendum thorebye
allowing the citizens a choice.
Tom St. Hilaire made a motion directing HRA and City staff to
develop a list of essential sorvicoo/public improvements by
lino !tomo for review and approval by the HRA at the May 3
mooting. Thereafter, would PRO be authorized to modify the
plans for TIF District No. 1-1 through 1-11. Al Larson
seconded the motion and with no further discussion, the motion
passed unanimously.
Page 6
eIR
HRA MINUTES
APRIL 5, 1995
10. CONSIDERATION TO APPROVE GRANTING A 20 FOOT EASEMENT ON HRA
LOT 5, BLOCK 3, OIP, TO THE CITY OF MONTICELLO.
In order for the City to extend the water and sanitary sewer
lines from Dundas Road to the Klein Farm property, the City is
requesting an additional 20 feet to the existing 50 -foot
drainage utility easement on the westerly boundary of Lot 5,
Block 3, OIP, owned by the HRA. The 50 -foot easement is for
drainage of the Swale and the 20 foot easement would be for
the installation and the maintanence of the new lines;
therebye, eliminating any conflict with potential ponding or
proximity to the City well.
One may not construct a building upon the easement; however,
it can be used for parking or driveways. The combined 20 -foot
and 50 -foot easements constitute a little over one -acre of the
8.4 -acre lot of which the HRA has an outstanding loan balance
at 8% interest rate with the City.
Al Larson made a motion to approve granting a 20 -foot easement
to the City in addition to the existing 50 -foot drainage
utility easement on the westerly boundary of Lot 5, Block 3,
OIP. Brad Barger seconded the motion and with no further
discussion, the motion passed unanimously.
11. CONSIDERATION TO ACCEPT THE RESIGNATION OF HRA MEMBER BEN
SMITH AND TO AUTHORIZE ADVERTISING THE VACATED HRA COMMISSION
SEAT.
Al Larson male a motion to accept the letter of resignation
from Bon Smith as an HRA Commissioner and authorized
advertising in the Monticq�lo Times for a replacement of the
vacated commission seat. Brad Barger seconded the motion and
with no further diacuosion, the motion passed unanimously.
Chairperson Larson thanked Mr. Smith for his years of service
on the HRA. It is anticipated that tho HRA and, perhaps, the
City Council will intorview HRA candidates at the May 3
meeting.
12. QONSIDERATIQN TO APPQINT TW.P INDIVIpUALS AS REPjtESENTATIVES OF
THE HRA TO THE MONTICELLO SENIOR HOUSING ALLIANCE, INC.
As Steve Johnson and Bon Smith previously had agreed to
ropr000nt tho HRA on the Monticollo Senior Housing Alliance,
Inc., Al Larson made a motion appointing Stove Johnson and Ban
Smith as HRA ropr000ntativos to the Monticollo Senior Housing
Allianco, Inc. Brad Barger seconded the motion and with no
furthor dlecuooion, tho motion passed unanimously.
Pago 7
HRA MINUTES
APRIL b, 1998
13. OTHER BUSINESS.
a) Project updates - Accepted as written.
b) Monthly PRG and Holmes B Graven bills were accepted by
concensus of the HRA members.
C) Tom St. Hilaire informed Koropchak to contact his office
for the name of the Individual to contact at Komo
Manufacturing, St. Cloud. Koropchak has not written the
letter as requested by the HRA marketing Monticello's
economic development efforts.
14. ADJOURNMENT.
The HRA meeting adjourned at 10:00 p.m. by a consenus of its
members.
�aGr �al ✓ �-/
011ie Koropchak,Executive Director
� Pape 8
TIF DISTRICT NO. 1-19 BUDGET
BY HRA APRIL 5, 1995
DEBT -SERVICE RESERVE FOR HOUSING BONDS
$ 95,000
DEMOLITION/REMOVAL
?,500
SITE IMPROVEMENTS
STORM SEWER
15,440
SANITARY SEWER
18,950
WATER
3,400
WATER/SEWER HOOKUP FEES
30,000
PUBLIC IMPROVEMENTS
UTILITY REALIGNMENT
12,000
FIRETRUCK PATH/HYDRANTS
10,000
BIKE/PED PATHWAY BRIDGE
10,000
SITE PREPARATION
39,208
OTHER PREPARATION FOOTINGS
15,675
PARKING/PAVING/LANDSCAPING
48,657
CONTINGENCY
20.000
SUBTOTAL
$325,830
ADMINISTRATION
42,000
TOTAL
$367,830
HRA AGENDA
vi MAY 15, 1995
Consideration to review for modification the proposal to
enlarge the boundaries of ev
Redelopment Project No: 1 and the
pro osed plan -(budget) for TIF District Nos. 1-1 through 1=11_
and District No. 1-19, all located_ within_ Redevelopment
Pro ect No. 1.
Reference and Backoround:
MODIFICATION TO BaLAROZ T88 i.:.,a:,i,:., ci :.n., PROJBCT BOUNDARIES
As a matter of convenience and in order to provide the
opportunity to utilize TIF on the O'Cello LLC property and the
Kjellberg East Mobile Court, the HRA is requested to enlarge
the Redevelopment Project No. 1 boundaries to include these
areas. The first area, owned by Tony Emmerich, is located
east of Highway 25, south of the Lundsten Property, west of
County Road 117 (Oakwood Drive), and north of the Kjellberg
East Mobile Court. The O'Cello property Is zoned Busineua
Campus and a variety of Business Zones. The second area,
Kjollberg Mobile Court, is located to the south of the O'Cello
property and is zoned Mobile Home Park. All parcels are
located within the City limits.
o See enclosed map outlining proposed enlargement.
MODIFICATION OF TIP PLANS FOR TIF DISTRICT MOS. 1-1 TBROOM I-
11
This item refers to the proposed Legislation Bill relating to
pro -1990 TIF pooling dollars. As estimated by Administrator
Wolfoteller, the Monticello HRA pro -1990 dollars over the life
of the districts totals approximately 3 million dollars. The
majority of the 3 million Is generated from throe
Rodevolopmont Districts.
Initially, the bill stated a plan must be in place (adopted)
by City Council prior to July 1, 1998 or pooling dollars would
be non-expondable by the HRA. Currently, the bill before the
Conference Committee otatoo the date for plan adoption is
extended to December 31, 1995: however, the bill further
limits pooling dollars from pro -1988 Redevelopment Diotricto
for uoc of redevelopment, housing, or solla activities only.
In other words, the majority of Monticello NRA dollars could
not be used for any public improvemonto.
It lo at the suggestion of Attorney Stove Bubul, that
discussions continuo to define a budget for approval by City
Council nn Jure Yb, 1995. This to safeguard a pooslblo
Page I
NRA AGENDA
MAY 15, 1905
compromise in the Conference Committee. Our schedule to
modify the plans (budgets) for District Nos. 1--1 through 1-11
would be as follows:
May 25 - 30 -day notice to taxing jurisdictions - A letter
in the hands of the taxing jurisdictions explaining the
fiscal impact of the proposed modification and how the
pooling dollars can be spend, explaining no district
boundary expansions and tax increment increases are
expected, and notifying of the public hearing scheduled
June 26, 1995, City Council Chambers. (Legislators are
scheduled to adjourn about May 22.)
June 6 - Planning Commission adopts resolution stating
the modified plans are consistent with the City
Comprehensive Plan.
June 7 - HRA adopts resolution approving the modified
plans and requests Council on June 12 call for a public
hearing on June 26, 1995 adopting a resolution approving
the modified plans.
June 12 - City Council calls for public hearing on June
26, 1995.
June 15 and 22 - Public hearing notice published in the
Monticello Times.
June 26 - City Council holds public hearing and adopts
modified plans of TIF District Nos. 1-1 through 1-11.
Enclosed is a list of potentlal projects and estimated dollars
for consideration. The projocto qualify as legal expondlturea
under current TIF Law.
MODIFICATIOR OF TIF PUB FOR TIP DISTRICT SO. 1-19
This is a houaekeoping item to technically modify the TIF Plan
(budget) of TIF Diotrict No. 1-19 as approved by the HRA on
April 5, 1995. The budget was lnerooeed by $42,000 for a
total of $367,830.00. District 1-19 Is a Housing District
creatod to assiot tho Monticello 8onior Housing Alliance. Inc.
and will be used to reimburse site and public improvement
costs and as a dobt-ocrvico rosorvo for the housing bonds
associated with the 48 -unit senior housing facility.
Enclosed is a copy of the budget as approved by the HRA on
April 5.
Page 2
HRA AGENDA
MAY 15, 1995
Alternative Action:
After the point meeting between the HRA, the City Council, the
Planning Commiosion, and the Parke Commission to hear a report
on the Comprehensive Plan Update and its relationship to TIF
Pooling dollars, the HRA may wish to further discuss the use
of pooling dollars in order to narrow -down and prioritize the
expenditure list for consideration to adopt a plan at the HRA
meeting of June T, 1995.
1 rage 3
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TIF SUMMARY
REVENUE AND EXPENSES
12131/94
PRE- MAY 1990 DISTRICTS
Total cash balances as of 12/31/94 (surplus)
Debt service funds $208,171
HRA - TIF projects 9369,883
$578,054
Total TIF revenue projected to be received over
d1sWc is Ilfe (based on 1994 TIF revenue amt) $4.611.388
TOTAL POTENTIAL REVENUE $5,189,442
Total debt, loans, & developer agreements
outstanding & payable as of 12131/94
Bonds & Interest $1,613,293
Loans & Interest $120,735
Developer agreement obligations
(pay-as-you-go districts) $]ZZ.60Il
9
Potential excess TIF revenue over expenditures
at the and of all pre -5190 TIF districts $3,377,914
TI FS UM2. WK4: 04120/95
PROPOSED EXPENDITURES FOR MODIFICATION
OF TIF PLANS FOR TIF DISTRICT NOS. 1-1 THROUGH 1-11
PRE -MAY 1, 1990
HRA OUTSTANDING BALANCE
LOTS 5 & 6, BLOCK 3, OIP
WESTERLY LOT 7, BLOCK 3, OIP $ 90,678.00
COMMUNITY HOUSING STUDY ($20,000.00)
ACQUISITION AND RELOCATION COSTS
KATZMAREK - 155-500-033403 Unplatted Land
ENV $43,300 A $81.18 REB 0
CLIFFORD OLSON - EAST BROADWAY
155-015-003060 LOTS 6,7,8,9, BLOCK 3
EXC NW 28 FT, LOWER MONTICELLO
EMV 40,800 A $64.32 REB $79.77
WEST COUNTY ROAD 75 - 155-010-043070
LOT 7, BLOCK 43. ORIGINAL PLAT
EMV $46,800 A $41.00 REB 0
SIX STREET:
155-010-009030 - LOT 3, BLOCK 9,
'o ORIGINAL PLAT (SOLBERG)
EMV $24,200 A $104.56 REB $63.56
155-010-009040 - LOT 4, BLOCK 9,
ORIGINAL PLAT (GATES)
EMV $24,200 A $104.56 REB $63.56
155-010-009050 - LOT 5, BLOCK 9,
ORIGINAL PLAT (FLORELL)
EMV $43,100 A $114.78 REB 0
155-010-009050 - LOTS 6 & 7, BLOCK 9.
ORIGINAL PLAT (DECKER)
EMV $33.200 A $168.12 REB $435.56
FRONT STREET:
BLOCK 54
Lots 6 & 7 (Schliof)
Lots 7 & 8 (O'Connor)
Lots 9 & 10 Northerly (Kruse - Firs)
Lots 9 & 10 Southerly (Bostic)
ALL OF BLOCK 55
Anderson, Hollenbock, Lundborg, Pratt, Boman, Thimmoot,
Schwlotoring, and Hasa.
y
BLOCK 63
Rice - Lots 4 & 5 and north 15 ft
EMV $92,200
BLOCK 64
Carlson - Lots 1, 2, 3, 4 & 5
EMV $126,700
SOILS
Bulk Tank Areae
ECONOMIC
MONTICELLO COMMERCE CENTER
(UPFRONT SMALL PROJECTS)
O'CELLO/LUNDSTEN/CITY PROPERTY/THOMAS PARK
(UPFRONT SMALL PROJECTS)
LAURINC HILLSIDE TERRACE/
CONSTRUCTION 5
(UPFRONT SMALL PROJECTS)
ESSENTIAL PMIC i,:, „.:
WASTE WATER TREATMENT PLANT
(1996 - $11.9 MILLION)
I-94 ON AND OFF RAMP (118)
Vn ($400,000 X 20% - $80,000)
I-94 & 118 FULL INTERCHANGE
($3,000,000)
FALLON AVENUE OVERPASS (Chelsea to 7 St)
($1,400,000)
CHELSEA ROAD/HIGHWAY 25 INTERSECTION
FALLON AVENUE UPGRADE (Dundas North)
($100,000 ESTIMATE)
(Rommolo District, $55,000)
TOTAL ESTIMATED PRE MAY 1990 POOLING DOLLARS $3,378,000.00
(2012)
1. ORIGINAL BILL: TO EXPEND HRA POOLING DOLLARS FROM PRE -MAY
1990 TIF DISTRICTS, A PLAN MUST BE ADOPTED BY FEBRUARY OR
APRIL, 1995.
2. SECOND BILL: PLAN MUST BE ADOPTED BY CITY COUNCIL PRIOR TO
JULY 1, 1995 (JUNE 26, 1995.)
3. ESTIMATED POOLING DOLLARS FROM PRE -1990 TIF DISTRICT NOS. 1-1
THROUGH 1-11 IS $3,378,000.00
4. LEGAL USE OF POOLING DOLLARS:
- Expenditures must be within the Monticello Redevelopment
Project boundaries.
- Line items are final and are not interchangeable.
- Acquisition of land, redevelopment, housing, or soils
contamination (Must designate parcels).
- Public improvements.
5. USE OF POOLING DOLLARS FOR PUBLIC IMPROVEMENTS COULD
INDIRECTLY COMPENSATE FOR THE CITY'S HACA LOSS ON NEWLY
CREATED TIF DISTRICTS. (Proposed Legislative Bill further
limits pooling to ten percent of increment, present law allows
for 25%).
6. APRIL 5, 1995, HRA SUGGESTED USE OF POOLING DOLLARS FOR
ESSENTIAL PUBLIC IMPROVEMENTS.
.......
7. THE LAST BILL PROPOSED AND IN CONFERENCE COMMITTEE, PLAN IN
PLACE BY DECEMBER 31, 1995; HOWEVER, LIMITS POOLING DOLLARS
FROM PRE -1988 REDEVELOPMENT DISTRICTS FOR USE OF
REDEVELOPMENT, HOUSING, AND SOILS PROJECTS, ONLY. (No public
Improvements.)
8. HRA ATTORNY STEVE BUBUL SUGGESTS CONTINUATION TO DEFINE BUDGET
FOR ADOPTION PRIOR TO JULY 1, IN CASE LEGISLATORS PROPOSE A OF
COMPROMISE.
TIP DISTRICT NO. 1-19 BUDGET
MODIFIED BY HRA APRIL 8, 1998
DEBT -SERVICE RESERVE FOR HOUSING BONDS
$ 98,000
DEMOLITION/REMOVAL
71600
SITE IMPROVEMENTS
STORM SEWER
18,440
SANITARY SEWER
18,930
MATER
3,400
WATER/SEWER HOOKUP FEES
30,000
PUBLIC IMPROVEMENTS
UTILITY REALIGNMENT
12,000
FIRETRUCK PATH/HYDRANTS
10,000
BIKE/PED PATHWAY BRIDGE
10,000
SITE PREPARATION
39,208
OTHER PREPARATION FOOTINGS
18,675
PARKING/PAVING/LANDSCAPING
48,637
CONTINGENCY
20.000
SUBTOTAL
$328,830
ADMINISTRATION
42.000
TOTAL
9367,830
HRA AGENDA
14 MAY 15, 1995
S. Consideration to approve a resolution authorizing PRG to
oreoare for the modification of the Plan for Redevelooment
Project No. 1 including the enlargement of its geographic area
and the TIF Plans for TIF District Nos. 1-1 through 1-11 and
the modification of the TIF Plan for TIF District No. 1-19.,
A. Reference and Background:
Attori.ay Bubul suggested the HRA proceed and authorize Public
Rc:;ou.ce Group, Inc. to begin preparation of the modifications
outlined in Agenda Item No. 7 and to request the City Council
call for a public hearing date of June 26, 1995.
Again, recognize the final line -item budget for modification
of the TIF Plans for TIF District Nos. 1-1 through 1-11 will
not be adopted by the HRA until the June 7 meeting.
B. Alternative Actions:
1. A motion to approve the resolution authorizing PRG to
prepare for the modification of the Plan for
Redevelopment Project No. 1 including the enlargement of
Ito geographic area and the TIf Plans for TIF District
m Nos. 1-1 through 1-11 and the modification of the TIF
Plan for TIP District No. 1-19.
2. A motion to deny approval of the resolution.
C. Recommendation:
Because the modifications enhance the objectives of the
Redevelopment Plan and are in accordance with the Minn000ta
Statutoo and in order to moot potential TIP amendments by
I,egiolotors; staff rocommendo Alternative No. 1.
D. Supporting Data:.
Resolution for approval.
r
Page I
A RESOLUTION BY THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO, WRIGHT COUNTY
RESOLUTION NO.
RESOLUTION AUTHORIZING PREPARATION FOR THE
MODIFICATION OF THE PLAN FOR REDEVELOPMENT PROJECT NO. 1
INCLUDING THE ENLARGEMENT OF ITS GEOGRAPHIC AREA
AND THE TIF PLANS FOR TIB DISTRICT NOS. 1-1 THROUGH
1-11 AND THE MODIFICATION OF THE TIF PLAN FOR
TIB DISTRICT NO. 1-19.
WHEREAS, the Housing and Redevelopment Authority (the
"HRA"), in and for the City of Monticello, Minnesota, has
has determined the modification to enlarge the geographic
area and the TIF Plans for TIF District Nos. 1-1 through
1-11 within Redevelopment Project Plan No. 1 would
enhance the objectives of the Redevelopment Project Plan
and is pursuant to and in accordance with Minnesota
Statutes, Sections 469.001 to 669.047.
Parcels identified for enlargement of the geographic area
of Redevelopmont Project No. 1 are:
Monticello Business Center - O'Cello LLC
PID# 155-500-143302
PID# 155-500-143101
Kjellberg East Mobile Park
PID# 155-500-154403
Modification of the TIF Plane for TIF District Nos. 1-1
through 1-11 relating to SIB pooling dollars available
from TIF Diotricts established pro -May 1, 1990. (See
Attached Proposal)
WHEREAS, the Housing and Redevelopment Authority (the
"HRA"), in and for the City of Monticello, Minnosota, has
determined the need to increase the project costs
modifying the TIF Plan for TIF District No. 1-19. (See
Attached Budget Modification)
NOW, THEREFORE, MAY IT BE RESOLVED by the Housing and
Redevelopmont Authority, in and for the City of
Monticello, Minnesota:
Authorizes Public Resource Group, Inc. to modify
the enlargement of the geographic area and TIF
Plano for TIP District Nos. 1-1 through 1-11 and to
modify the TIF Plan for TIF District No. 1-19, all
located with Redevelopment Project No. 1.
Page 1
NRA RESOLUTION NO.
PAGE 2
Requests the Monticello City Council on Monday,
June 12, 1995, call for a public hearing date of
Monday, June 25, 1995, for above eaid
modifications.
Adopted this th day of May, 1995.
ATTEST:
NRA Executive Director
ARA Chairperson
Page 2
_J
0
HRA AGENDA
MAY 15, 1995
9. Consideration to approve a Risht-of-Entry to enter Lot 5,
Block 3, OIP.
A. Reference and Background:
Please read the enclosed letter of request from Mr. Bret
Weiss, City Engineer. The request is to approve a right -of -
entry to enter Lot 5, Block 3, OIP, which is owned by the HRA.
Grading is necessary for development of a swale along the
common property line of the southerly boundary of the HRA lot
and the northerly boundary of the Klein Farm property. As you
will recall, last month the HRA approved an additional 20 -foot
drainage utility easement to the existing 50 -foot swale
easement along the westerly boundary of Lot 5.
It appears the swale will be located along the common property
line. The site will be restored by seeding and at no cost to
the HRA; however, the fence is not proposed to be reinstalled.
B. Alternative Action:
1. A motion granting a right -of -entry request from OSM to
enter Lot 5, Block 3, OIP.
2. A motion denying the right -of -entry request from OSM to
enter Lot 5, Block 3, OIP.
3. A motion to table any action.
C. Recommendation:
It is my understanding, OSM was not granted a right -of -entry
from Ron and Dee Johnoon regarding Lot 6. Prior to a
recommendation of Alternative A1, two questions might be
anowercd: One, will the owale share the common property line
of Lot 5 only and will the setback on the HRA southerly
boundary increase beyond the 1-2 requirement of 50 feet.
D. Supporting_ Data;-,
Letter of Request and map.
Page 1
April 12, 1995 Orr
as)& =W -
Monticello HRA 3W Park'Awe E,
P.O. Box 1147 sns Wvf=a awleva d
250 Broadway East Mhmeap093, MN 55416.229
775
Monticello, UN 55362 biases -57
i -WO-M-5775
FAX 595-5774
Re: Grading and Construction Activities
Mein Farms Kamm
siwwcyars
City of Monticello Project No. 95-02C
OSM Project Na 5578.00
Gentlemen
The City of Monticello has recently received bids for construction of the above -noted
project As a part of that construction, mass grading of the site, as well as some grading
within the existing drainage Swale south of Dundas Road, will be Meted Attached to
this letter is a copy of the grading plan for the proposed site. You will note the highlighted
grading activities shown along the property line. The project is proposed to incorporate a
Swale along the common property line to accommodate drainage from your site, as well as
the Klein Farms site. Because the Swale is proposed to be on the common property lir,
some grading will need to take place on your property as well as the existing barbwire fence
will need to bre removed. As such. we must obtain a right -of -entry on your property (must
be acquired in order for the contractor to access your property and complete the anticipated
activities. Your site will be fully restored by seeding and will butter fit with the proposed
development. This will all be completed at no additional cost to you, however, the fence
is not proposed to be reinstalled
Your signature on this letter will serve as our right -of -entry to enter your property. Please
keep one copy of the letter for your files.
Please contact me at 595.5705 to discuss this item in greater detail so that we can proceed
with the proposed construction project Thank you for your cooperation. I look forward
to hearing from you.
Sincerely.
ORR-SCHE LEN-MAYERON
R ASSOCIA INC MON'IICEILO HRA
Bret A Weiss, P.E.
City Engineer By:
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ACTIVITIES. THE LARDER IO' CONTOWS
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TO DRAIN FROM BI TUNINOIS a
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C
HRA AGENDA
MAY 15, 1995
10. Consideration to approve a resolution authorizing) PRG to
prepare the modification of Redevelopment Proiect No. 11
Modificiation of the TIF Plans for TIF District Nos. 1-1
through 1-19, and the establishment of TIF District No. 1-20
and the TIF Plan for TIF District No. 1-20.
A. Reference and Background:
This proposed project remains in the preliminary stages;
therefore, it is premature for the HRA to adopt a resolution
authorizing PRG to establish a TIF District.
The tenant, new builder/developer, PRG and Koropchak were
scheduled to meet Thursday, May 11, to determine the
builder/developer's interest in the project. Following that
meeting, a meeting with First Bank had been scheduled to
discuss bank interest in the project. The meeting was
canceled due to an emergency of the builder/developer and has
been rescheduled for Tuesday, May 16, at 10:00 a.m.
As you recall at the last HRA meeting, the HRA made a motion
of an asking price of $60,000 for Lot 5, Block 3, OIP with no
TIF assistance . TIF is necessary for the project to work.
Developers Schultz and Hoglund withdrew from the project. It
Is assumed the new builder/developer will look at lots owned
by the City and Pfeffer.
In order to cash flow the project and to maintain a rate of
return to attract a builder/developer, the use of TIF is
necessary. Upon the preliminary analysis, the TIF assistance
requirod is 650,000 of upfront dollars. The EDA would also
need to approve a loan for $50,000.
Again, the pro joct would be the construction of a 13,500 to
15,000 sq ft metal office/manufacturing facility. The tenant,
an existing Monticello husineoo, would like a five-year lease
with an option to purchase. The company currently employs 28
full-time and plans to hiro an additional 10-12 with the
proposed expanolon. The most current P&L otatmento indicate
the company profits aro ahead of projectlono.
In a true sense of the word, this project meats the TIB "but
for" tent and the GMEF "gap financing" criteria: Without the
finanical asoiotance of TIF and the CMEF this project will not
procnod.
Page 1
HRA AGENDA
MAY 15, 1995
With the assumption the estimated increment is sufficient to
cover the HRA debt, will the HRA consider the use of upfront
TIP assistance in an amount not -to -exceed $50,000 as a pass-
through to reduce the rental rate? We need to give a timely
response to the tenant, so a decision can be made by the
tenant to relocate in 1995 to Becker or Monticello or to rent
for an additional year. The tenant has one-year of high
worker's compensation premiums due for a portion of the
company which was sold. In order to cash flow the project,
rental rates of $2.80 per sq ft for year one and $3.50 per eq
ft for years two through five are necessary.
Pago 2
11. Consideration to review comments of a reference check on
Publicorp, Inc. for further direction.
Following the interview of Publicorp, Inc., Mark Ruff and Sid
Inman, the HRA requested a reference check be completed.
Listed are comments heard on the reference check:
City of Circle Pines, Jim Keinath, City Administrator - Worked
with Mark and Sid. Highly respected, timely and cost
effective, most recently completed credit analysis for TIF
Senior Project and Redevelopment Bonds.
City of Duluth, Larry Janssen, City Treasurer - Past three
years. Assisted with refunding bonds, TIF projects, and
anticipated notes. Experienced some minor detailed paper work
problems which were quickly resolved.
Hastings HRA, John Grossman, Executive Director - Gone, Mark,
and Chris. On and off over 10 years. TIP Plans designed for
Hastings, financial cash flow analysis.
City of Windom, Jim King, Economic Finance Director - Mark and
Sid. Two to three projects in five years. TIP Economic and
Redevelopment. On top of things.
City of Fridley, Howard Koolick, Assistant Finance Director -
e Do a very fine job. Does not utilize Publicorp for TIP
projects as difficult to break long-time ties with current TIF
consultant. Publicorp completed a time -efficiency study on
City employees. It was difficult to obtain adequate
Information from employees.
t
4
Credit Analysis
Proposed Financial
Package/Marketing
TIF District Plan
Grant/Loan Applications
Bond Issuance
Knowledge/Details
Follow-through
HRA PRIORITIES
PRO, Inc. Publicorp,
Inc.
�
A1C
HOLMES at GRAVEN
a,naed
C.
1-4
200 South S1di Sueet, Sults 470
f
�+ KW**o4t, MN 55402
V • (612) 337-9300
April 21,1995
CITY OF MONTICELLO
P O BOX 1147
MONTICELLO, 5367-9245
MN1 � Senior Housing TIF
Invoice # 1079
Through March 31, 1995
For Alli Legal Services As Follows:
03/01/95 SIB Phone call with O. Koropchak re TIF
0.20
24.80
03/01/95 SJB Phone call with 0. Koropchak re seminar
0.20
24.80
03/03/95 SJB Phone call with D. Lindh and 0. Koropchak re TIF
1.00
124.00
and qualified housing district; research same
03/07/95 SJB Phone call with 0. Koropchak re TIF and HACA
1.00
124.00
issues; revise TIF Plan and City resolution
03/08/95 SJB Phone call with D. Gustafson m TIF Plan
0.20
24.80
03/09/95 SJB Phone call with O. Koropchak re TIF
0.70
86.80
03/13/95 SIB Attend TIF hearing; prepare for same
1.75
217.00
03/24/95 SJB Draft contract
5.00
620.00
03/27/95 SJB Draft Low-income Agreement and Subordination
4.50
558.00
Agreement; review and revise Contract; letter to 0.
Koropchak
03/28/95 SJB Phone call with O. Koropchak re TIF issues
0.25
31.00
03/31/95 SJB Phone call with 0. Koropchak re Contract and TIF
0.30
37.20
issues
Total Services:
1,872.40
Attorney Summary
Stephen Bubul 15.10® 124.00/hr
1,872.40
For All Disbursements As Follows:
03/07/95 Fax
3.00
03/13/95 Mileage expense (SJB)
16.00
Total Disbursements:
19.00
Continued on Next Page
HOLMES & GRAVEN
a,:wed
200 South Std+ Son% SLdw 470
M oW. MH 55402
CITY OF MONTICELLO
Page 2
MN 190-00048: Senior Housing TIF
Total Services And Disbursements: 1,891.40
I dWJwo. undcr pm* o+ tao
+da aomum dab" or dwnw d
and am no pan
m n Dora
siprunae ar
HOLMES at GRAVEN
ca.mva
200 Swwh S1uh Sum Sub 470
PMY*apaa4 MN 55402
(612) 337.9300
April 21, 1995
CITY OF MONTICELLO
P O BOX 1147
MONTICELLO, MN 55362-9245
MN 190-00041: Redevelopment - General
Invoice tt 1070
Through March 31, 1995
For All Legal Services As Follows:
03/15/95 SJB Prepare outline and handouts for seminar 1.00 124.00
03/16/95 SJB Review and finalize seminar materiels; TIF 3.50 434.00
seminar with HRA and Council
Total Services: 558.00
P
Attorney Summary
Stephen Bubul 4.50@ 124.00ft 558.00
For All Disbursements As Follows:
03/16/95 Mileage expense (SJB) 16.00
03/16/95 Photocopies 27.00
Total Disbursements: 43.00
Total Services And Disbursements: 601.00
1 dad=a unaa Porory o1 UW
b— 014
cwmffd
Cs
.
PUBLIC RESOURCE
GROUP, INC.
s
May 9, 1995 Marketing, Development & Finance Specialists
Ms. 011ie Komphat
City of Monticello
230 East Broadway
P.O. Bo= 1147
Moatiodlo, MN 55362
STATEMENT
Consulting Services—March 16, 1995 through April 15, 1995
3-21-95 IRK—Fumocial stru = for Decorative Services
1.25
3.22-95 LPK—Deomadve Services project
.75
3.29-93 LPK—Deem dve Services follow-up'
•50
3.30-95 LPK—Decmative-Services follow-up, revise structure
1.25
4.1-95 LPK—Decorative Services project and follow-up '
LM
NET CHARGEABLE HOURS:
4.75
Net Chargeable Hour ® $75/Hour
$356.25
4.4.95
LK—Marimung with Decorative Services. follow-up
2.50
TOTAL AMOUNT DUB
�iIBBE�Q II�'834 �:S.bQ ', •IIY�QG '
5336.25
. .
7TJW: NET DUB UPON RECEIPT, 1.3396 PER MONTH SERVICE CHARGE ON
PAST DUE ACCOl1NTS
4205 Lancaster lane North• Sulte 1100 • Minneopolis. Minnesota 55141 • (612) 550.7979 • (612)
SSD-9221 Fax
r
250 East Br02dW2Y
P. O. Box 1147
Monticello, MN
55362.9245
Phone: (612) 295.2711
Metro: (612) 333.5739
Fax: (612) 2954404
Mr. Robert Nauheimer, President
KOMO Machine, Inc.
11 Industrial Blvd.
Sauk Rapids, MN 66379
Dear Mr. Nauheimer:
April 27, 1995
Members of the Monticello Housing and Redevelopment Authority (HRA)
are aware of KOMO Machine, Inc. and its superb operations and
management. This prompted an unusal request. NRA Members Al
Larson, Tom St. Hilaire, Ben Smith, Bradley Barger, and Everette
Ellison requested a letter be addressed to you describing the
industrial development objectives of the City of Monticello.
First, congratulations to you and the KOMO Machine, Inc. employees
for the successful operation and management of your business.
Secondly, one of the City of Monticello's industrial development
objectives is to recruit successful and growth potential
manufacturing businesses. Located along I-94 and within a close
proximity of the metro area, Monticello still precerveo the quality
and pride of a small community.
The City's industrial growth began about five to ten years ago. In
February, the community became a part of the metro telephone
exchange. Some 1,200 housing starts are projected through year
2000. This planned housing stock will aselet to accommodate the
housing demands associated with the increased employment of new and
expanding buoinessee and will indirectly enhance the City's ability
to provide for an adequate labor pool. Aloo, the City is fortunate
to have ample land available for Industrial development.
The City establiohed a revolving loan fund and utilizes Tax
Increment Financing, when applicable, to aesist industrial
development. Additionally, the City has been successful in
Mr. Nauheimer
April 27, 1998
Page 2
obtaining dollars from Federal, State, and Regional funding sources
to assist industrial projects.
The Monticello Industrial Prospect Team would be most pleased to
host KOMO Machine, Inc. officials, to provide a tour of the
industrial park and sites, and to further discuss the expansion
needs of KOKO Machine.
I will contact you within a few days or please do not hesitate to
call me at (612) 295-2711 if you have immediate questions. I look
forward to meeting you. Again, congratulations and much continued
suttees to KOMO Machine, Inc.
Sincerely,
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO
011ie Koropchak
Executive Director
cc: File