HRA Agenda 08-02-1995AGENDA
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, August 2. 1995 - 7:00 p.m.
City Hall
MEMBERS: Chairperson Al Larson, Vice -Chairperson Brad Barger,
Everette Ellison, Tom St. Hilaire, and Roger Carlson.
EXECUTIVE DIRECTOR: 011ie Koropchak.
STAFF: Rick Wolfetellor and Jeff O'Neill.
GUEST: James Harwood, Partner, Vector Tool 6 Mfg., Inc.
Steve Grittman, City Planner, Northwest Associates.
1. CALL TO ORDER.
2. CONSIDERATION TO APPROVE THE JUNE 6, 1995, HRA MINUTES,
3. CONSIDERATION TO ACCEPT THE DECLARATION OF POTENTIAL CONFLICT
OF INTEREST SUBMITTED BY COMMISSIONER BRAD BARGER.
4. CONSIDERATION TO NEGOTIATE THE TERMS AND CONDITIONS OF THF.
PURCHASE AGREEMENT FOR LOT 5, BLOCK 3, OTP, AND CALL FOR A
PUBLIC HEARING ON THE ACQUISITION AND DISPOSITION OF RAW LAND.
F. CONSIDERATION OF A COMPREHENSIVE PLAN UPDATE/REDEVELOPMENT
CONCEPT DISCUSSION BY STEVE GRITTMAN.
6. CONSIDERATION TO REVIEW COMMENTS FROM ATTORNEY BUBUL RELATING
TO THE REQUEST FOR INFORMATION TO ADD AN ADDITIONAL CRITERIA
TO THE LOCAL TIF POLICIES.
7. CONSIDERATION OF PROJECT UDPATES:
a) Gary Singer
h) David Menke
C) Brad Larson
R. OTHER BUSINESS:
a) Approval of Bills.
h) Example of Publicorp response, relating to TIF inquiry.
C) Other.
9. AD.70IIRNMENT.
MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Tuesday, June 0, 1995 - 7:00 p.m.
City Hall
MEMBERS PRESENT: Chairperson Al Larson, Everette Ellison
(tardy), Tom St. Hilaire, Brad Barger (tardy),
and Roger Carlson.
STAFF PRESENT: 011ie Koropchak.
1. CALL TO ORDER.
Chairperson Larson called the HRA meeting to order at 7:07
p.m.
2. CONSIDERATION TO APPROVE THE MAY 15, 1995. HRA MINUTES.
Tom St. Hilaire made a motion to approve the May 15, 1995, HRA
minutes. Seconded by Chairperson Larson and with no
corrections or additions, the minutes were approved as
written.
3. CONSIDERATION TO ADOPT A RESOLUTION APPROVING THE MODIFICAT;ON
OF THE TIF PLANS FOR TIF DISTRICT NOS. 1-1 THROUGH 1-19,
SPECIFICALLY TIF DISTRICT NO. 1-19, ALL LOCATED WITHIN
REDEVELOPMENT PROJECT NO. 1.
Having previously agreed to a $42,000 budget Increase for TIF
District No. 1-10, Tom St. H111are made a motion to adopt the
resolution approving the modification of the TIF Plans for TIF
District Nos. 1-1 through 1-19, specifically the Plan for TIF
District No. 1-19, all located within the Redevelopment
Project No. 1. Brad Barger seconded the motion and with no
further discussion, the motion passed unanimously. The HRA
modified the budget to allow 00% of the tax increment to be
spend on the senior housing project. Secondly, the 10%
Administration provides dollars for HRA administration costa
and/or allows the HRA the flo::ibillty to pay the estimated
HACA Loss to the City if for some reason, in any given year
during the life of the district, the project does riot meet the
requirements of a "Qualified Housing District".
1. CONSIDERATION TO ADOPT A RESOLUTION APPROVING THE PRIVATE
REDEVELOPMENT CONTRACT BETWEEN THE HRA, THE CITY, AND
PRESBY'EERIAN HOMES HOUSING AND ASSISTEP &TVING, INC. , THE
EXTENDf-D LOW-INCOME HOUSING COMMITMENT [AGREEMENT BETWEEN THE
PRA ANP PHM; AND THE SUBORDINATION AGREEMENT AMONG THE HRA.
THE CITY. AND THE TRUSTEE.
In April, the HRA authorized its Chairperson and Executive
Director to execute the Private Redevelopment Contract,
�- Page 1
n
HRA MINUTES
JUNE 6, 1995
Extended Low -Income Housing Commitment Agreement, and the
Subordination Agreement as outlined and subject to no major
changes or surprises.
Since the Monticello Senior Housing Alliance approved the
transfer of Mississippi Shores ownership to Cresbyterian Homes
Housing and Assisted Living, Inc., Attorney Bubul and
Koropchak agreed that constituted a major change. The HHA was
Informed of three major changes to the contract: New
ownership, City agrees to construct the public improvements
and PHM. agrees to reimburse the City for the public
Improvement costs 30 -days from receipt of invoice, and the HRA
agrees to reimburse the City for any HACA Lose during the life
of the district.
Under the new ownership and the additional equity, the project
cash flow is increased and rental rates are reduced. With
additional guarantees, the % of upfront rental commitments is
reduced therobye allowing the project to proceed. PHM also
provides expertise in the area of senior housing management.
Brad Barger made a motion to adopt the resolution approving
the Private Redevelopment Contract among the HRA. City, and
PHM: the Extended Low -Income Housing Commitment Agreement
between the HRA and PHM; and the Subordination Agreement among
the HRA, City, and Bond Truotee. Al Larson seconded the
motion and with no further discussion, the motion passed
unanimously.
CONSIDERATION OF A TIF LEGISLATIVE UPDATE AND THE APPROVAL TO
WITHDRAW MODIFICATION OF TIF PLANS FOR TIF DISTRICT NOS. 1-1
THROUGH 1-11.
As a result of the no Legislative action regarding pre -1990
TIF dollars and par the advised of Attorney Bubul, there was
no immediate need to put a "qualified plan" or contract in
place in order to lock -in the use of existing Incromeut
meaning pre -1990 surplus SIF dollars.
Koropchak reported, after the May HRA authorization,
Administrator Wolfstollor woo informed to retire the HRA (the
"Borrower") loan of $90,678 at 8% interest rate for Loto 5 6
6. Block 3, OIP, to the City of Monticello (the "Lender").
Loan rotiromont payment from the TIF Surplus Fund. HRA
members requested Koropchak verify that the transaction was
completed.
Page
019
HRA MINUTES
JUNE 6, 1995
Tom St. Hilaire made a motion to withdraw the modification of
TIF Plans for TIF District Nos. 1-1 through 1-11. Everette
Ellison seconded the motion and with no further discussion,
the motion passed unanimously. The approved motion allows the
HRA both flexibility and additional time to consider the
expenditure of the approximately $3.5 million dollars of TIi
surplus dollars.
6. CQNSIDERATION OF A COST ESTIMATE FOR THE MODIFICATION OF PLANS
FOR REDEVELOPMENT PROJECT NO. 1 AND TIF.
HRA members reviewed the letter submitted by PRG estimating
the cost of modification, includlnn notices, distribution,
resolutions, and cash flow analysis, in 15-20 hours of PRO
professional staff time, or $1,350 - $1,800. PRG anticipated
this cost to accommodate the modification of more than one
district; however, suggested PRG be allowed to quote a price
in advance.
Under normal circumstances, Holmes & Graven should not be
Involved in a modification. This an informational item in
response to a question by the HRA, no action was required nor
taken by the HRA.
CONSIDERATION OF A LEGAL OPINION FROM HRA ATTORNEY SUBUL.
This an update of the request by the HRA for a legal opinion
relating to the addition of a nineth criteria to the local TIF
policies: The project shall be deemed to demonstrate
community involvement and/or encourage local residency.
Attorney Bubul will have a response for the HRA at the July
meeting. No action was required nor taken by the HRA.
8. CONSIDERATION TO NOMINATE AND ELECT A VICE -CHAIRPERSON OF THE
HRA.
Tom St. Hilaire nominated Brad Barger for the Office of Vice
Chairporson of the HRA. Al Laroon seconded the motion and
with no other nominations from the floor, nomination ceased.
The motion passed unanimously electing Brad Barger as HRA Vice
Chairperson.
SER BUSIVESS.
a) Consideration of monthly bills - The HRA authorized
payment of the May 20 and 22, 1995, billingo from Holmes
& Craven.
Page 3
HRA MINUTES
JUNE 6, 1995
b) Copy of letter from Brad Larson - HRA members requested
Koropchak telephone Brad as a follow-up to the letter.
c) Other - none.
10. ADJOURNMENT.
The HRA meeting adjourned at 1:30 p.m.
011ie Koropchak, HR Executive Director
Pago •
HRA AGENDA
AUGUST 2, 1995
3. Consideration to accept the Declaration of Potential Conflict
of Interest submitted by Commissioner Brad Barger.
A. Reference and Background:
Brad Barger is one of three partners of Vector Tool & Mfg.,
Inc. and serves as an HRA commissioner: therefore, he submits
the enclosed Declaration of Potential Conflict of Interest.
Mr. Barger and his partner, Jim Harwood, are interested in the
purchase of the HRA lot: Lot 5, Block 3, OiP. BraA and Jim
are considering a buyout of the third partner. This
declaration is similiar to the declaration usod by
Commissioners Al Larson and Brad Barger relating to the Senior
Housing project.
The HRA is request to make a motion accepting the Declaration
of Potential Conflict from Mr. Barger for entry into the HRA
minutes. Mr. Barger is not to discuss the project with other
HRA commissioners, meaning at no time. Mr. Harwood, hie
partner, will be project contact. ,
B. Alternative Actions:
1. A motion to accept, the Declaration of Potential Conflict
of Interest from HRA Commissioner Brad Barger.
2. A motion denying acceptance of the declaration.
3. A motion to table any action.
C. Rucommendation:
Recommendation is Alternative Action No. 1
D. Suppn_rting, Data;.
Copy of the executed declaration.
Page 1
DECLARATION OF POTENTIAL CONFLICT OF INTEREST
I, the undersigned commissioner of the Housing and
Redevelopment Authority in and for the City of Monticello
("Authority"), hereby declare that:
1. I am a member of t'•e partnership of CL?,•` 7cv� V
Fri a Minnesota[ ni.4y.t /1,
2. The Partnership is or is reasonably likely to become a
participant in a project or development that will be affected by
decisions of the Authority and its board of commissioners.
RVecifirnlly, the Partnerohih expects to purchaoo land from the
Authority in ccnnuu tiuu wllh construction of a manufacturingiottice
project in the City, which will require approval by the Authority
of a Purchase Agreement and all related documents to the purchase
between the Authority and the Partneruhih.
3. Pursuant Section 469.009 of the LIRA Act, I hereby 3ubmlt
this otatement of potential conflict of interest and request that
It_ be entered In the minutes of the Authority at Ito meeting on
I , 191.
4. I will not attempt to Influence any Authority employee in
any matter related to the Partnership manufacturing/office project,
L will not take part in any action or decision related to tliot
matter, and will not bo counted toward a quorum during the purtion
of any meeting of the Authority board of commloolonera In which
that matter is to be cottsidured.
Dated: July ., 1998.
Z=-'�
dmmIo er
Housing and Redevelopment
Authority In and for the City
of Monticello.
HRA AGENDA
AtICUST 2, 1995
4. Consideration to negfltlate the terms and conditions of the
purchase agreement for Lot 5, Block 3, OIP, arid call for r
public hearinq on the acquisition and dispoeltion of raw land_
A. Reference and Backqround:
In June, the NRA expressed an interest to negotiate a reduced
land price for the HRA lot known as Lot 5, Block 3, QIP, in
order to place thy_ property back on the tax-roll. A 6.4 arse
parcel. The interested buyer, a high-tech manufacturing
husinens, has the potential to create 32 iohs within
Monticello ($12.00 average wage) over 2-3 years.
The HRA established the land price of the lot to be $96,000 or
$15,000 per acre. By-the-way, a Quit Claim Deed is boing
recorded at the County relating to the HRA granting the City
a 20 ft utility easement to the existing 50 ft drainage
easement along the westerly boundary of Lot 5.
Based on the following project assumptions, Koropchak
estimated future taxes (not tax increment) and suggested both
a TIP assistance arid a straight land reduction.
ASSUMPTIONS - JUNE 9
Construction of a 15,000 sq ft tip -up panel (non-metal)
office/manufacturing facility. Estimated market value (EMV)
of building - $375,000. 30-40 jobs over 2-3 years, .av,�rag,:
wage $12.00 per hour, construrtinn 1995, tax rate_ 113.02A%.
ESTIMATED ANNUAL TAXES - $21,991.
WITH TIP - LAND COST, $41,000 (WRITE-DOWN, $55.00
WITHOUT TIP - LARD COST, $40,000 (WRITE-DOWN, 886,000)
32 PT JOBS, TWO TEARS (81.760 PER JOB WRITE-DOWN).
Vernally acceptablu by Chairperson Larson.
ASSUMPTIONS - JULY 25
Conutrur.tlon of a 13,500 eq ft metal office/manufacturinU
f,.u;llit.y. EMV of building $270,000. 30 jobs over 2 yearu,
,rvrrage wage 012.00, construction 1995, tux rate 113.02A%.
ESTIMATED ANNUAL TAXES - 816,652.
WITH TIP - LAND COST. $51.000 (WRITE-DOWN $45,000)
WITHOUT TIP - LAND COST. 880,000 (WHITE -DOWN, 846.000►
50 PT JOBS, TWO TEARS (01.653 PER JOB WRITE-DOWN).
Page I
HRA AGENDA
AUGUST 2, 1995
ASSUMPTIONS - JULY 26, BUBUL' S OFFICE
ronut.ruction of a 15,000 eq ft metal facility: 13,000 6q ft
manufacturing and 2,000 eq ft office. E14V of building -
$320,000. 30 jobs over 2 yearo, annual weighted -wage $12.00
ph, construction 1995, tax rate 113.028%.
ESTIMATED ANNUAL TABES - $19,192 (f 9 years a $172,188 divided
by 2 - 0$86.094.)
WITHOUT TIF - THE BUYER A LAND COST OF 830,_000
(WRITE -DOM 01 $66.000.)_ 90 FT JOBS, IND TEARS ($2,200 PER
JOB WRITE-DONN.)
JULY 27 - TOUR
The Prospect Team of Kevin Doty, Al Larson, Arvr. Crim,3mn, Rnn
Hoglund, and Koropchak toured this job -shop machining facility
on Territorial Road in Maple Grovc on Wednesday. They as 130
visited Precision Technologies, Inc. in Rogers.
Koropchak has requested two -yearn of financialo which have not
arrived. The company 13 cousidering suhmlttal of aphllrations
for CMEF and CMTF dollars.
TERMS AND CONDITIONS
Based on the HRA's objectives to encourage• h1Uhet -w.,U, ,
quality businesses, and quality conotraction; to elfminat,•
tax-ox,•mpt prnperty; and for a project to moot .lo,:.,l TIP
polici„o; the following will bo determined:
1. Land root (write-dnwn).
2. Creation of 30 jobs at, wvlghted averaUe ,:,f S12.no pvr
hour over two yearo.
3. Ruhul nuuueota: The cheated jobs malntalned for an
addltlonal three years.
4. If property r000ld, drvelnl',cr must ftrot unt,ify HRA.
5. Earn,:ot mrt,uy, LG,000.
R. Buyer rcoponsihle for remaining balance, of sp-,1.0
aoumuomentta $452.19, ubtainlny 1.11lu in„urattco, luU.,l .iud
"losing fcce.
7. Evidence of approved covetrurtlon financing.
R. No? llmit,•d to the ahove.
.lamed Harwood, developer, rind Kun Lanto, builder, will h,•
protient .it the HRA mi,retinU to roviow pru,joct :and huildlnU
design. A pro ,alts, and bulldlug review m.utinu So echt:du.lud
� PaUv 2
r. HRA AGENDA
J AUGUST 2, 1995
with city staff and city engineer at. 2:00 p.m. Wcdnc*day. It
is hoped construction can begin Reptember 15, 1995.
Upon agreement of terms; and conditions, the HRA is to call for
a public hearing on the acquisition and disposition of raw
land. Public, hearing scheduled for Wednesday, Scptcmbur 6,
1995.
B. Alternative Actions:
1. A motion establishing the terms and conditions of the
purchase agreement and calling for a public hearing on
September 6, 1995.
2. A motion to continue negotiations.
3. A motion to withdraw based on an unwilling seller or
buyer.
C. Staff Recommendation:
This becomes a policy of the HRA. Of a general note, the HRA
has typically used TIF for a project of this taize and awwiot.ed
I with land write-down of $50,000. Document preparation and
l legal coats are wrapped into the TIF projent. and are not the
oxprrnac of the developer.
n. _"Vp.2rtfn2 Djta_
Local TIP policies.
Page 3
HOUSING AND REDEVELOPMENT AUTHORITY
City of Monticello
TAX INCREMENT FINANCING POLICY
Program Purpose: The Monticello Housing and Redevelopment
Authority will utilize Tax Increment Financing to support the
community's long-term economic and housing goals.
Policy Considerations: The HRA will analyze and evaluate Tax
Increment Financing proposals based upon the following policy
considerations. Each project shall be measured against these
considerations and the project's value shall be determined, based
upon meeting these considerations.
1. The project shall be consistent with the City's Comprehensive
Plan.
Z. The project shall demonstrate long-term economic and/or
housing benefits to the community.
3. The project shall create and/or retain employment for
Monticello residents.
4. The project shall increase moderate priced housing options for
area reoidents.
5. The project shall facilitate the redevelopment or elimination
of "substandard" or "blighted" areas as determined by the HRA.
6. The project shall facilitate the "clean-up" of environmentally
unsound property.
7. The project shall provide additional public funding for puhlir
Improvements Including utilities and/or park development which
would not otherwise be available.
9. The project shall be deemed to promote additional dosirod
"spin-off" development.
HRA AGENDA
AUGUST 2, 1995
Consideration of a Comprehensive Plan Update/Redevelopment
discussion by Steve Grittman.
Reference and Backqround:
At the recommendation of Chairperson Larson, Jeff O'Neill, and
Koropchak; Mr. Grittman was invited to the HRA meeting to
update the commissioners on the progress of the Comprehensive
Plan. The update covers the period since the joint. -
commissions meeting through the neighborhood meetings to
present. It is important that the HRA stay in -tune and
participate in the discussinns Por development or npgrading of
the plan. The HRA is the city's redevelopment entity and one
of its financing tools.
Please make every attempt to attend the meeting. The HRA
needs to establish and prioritize its short and long-term
goals.
L Pagn 1
HRA AGENDA
AUGUST 2, 1996
Consideration to review comments from Attornei.r Bubul relating
to the request for information to add an additional criteria
to the local TIF policies.
Reference and Barkoround:
Enclosed is an excerpt of the May HRA minutes directing
Koropchak to contact Attorney Bubul relating to legal
ramifications to add a nineth criteria to the local TIF
policies. Mr. Subul will fax hi3 response on Monday, July 3:,
for distribution to HRA members on Wednesday evening.
Page l
HRA MINUTES
MAY 15, 1995
to increase their profits in order to afford industrial market
rental rates. The HRA would reconsider the use of TIF next
year.
10. CONSIDERATION TO REVIEW COMMENTS OF A REFERENCE CHECK ON
PUBLICORP, INC. FOR FURTHER DIRECTION.
HRA members agreed the comments from the reference checks were
positive and suggested the use of Publicorp, Inc. when the HRA
has a now project. This would be on a trial basis. PRO is to
complete the projects and modifications in progress.
11. OTHER BUSINE§S:
a) HRA members accepted the monthly PRO and Holmes & Graven
bills. Koropchak noted legal expenditures, today, for
the Senior Housing project were approximately $5,000.
b) HRA members agreed and went on record stating the highest
and best use of the Monticello Commerce Center property
was for the utilization of industrial businesses and
quality jobs.
c) Chairperson Larson requested Koropchak review with
` \ / Attorney Bubul for any legal ramifications the addition
of a nineth criteria to the local TIF policies: The
project shall be deemed to demonstrate community
a involvement and/or encourage local residency.
—ted) Koropchak noted a manufacturing business interested in
Monticello for construction of a 100,000 eq ft
office/production facility. 125 jobs and the need for 20
acres. Hopefully, the IDC Prospect Team will visit or
host the company in early June.
e) The Juno HRA meeting was changed to Tuesday, Juno B, 1998
In order to accommodate schedules.
12. ADJOURNMENT.
The HRA meeting adjourned at 11:45 p.m.
011ie Koropchak, Executive Director
Pago 6
HOUSING AND REDEVELOPMENT AUTHORITY
v
City of Monticello
TAX INCREMENT FINANCING POLICY
Program Purpose: The Monticello Housing and Redevelopment
Authority will utilize Tax Increment Financing to support the
community's long-term economic and housing goals.
Policy Considerations: The HRA will analyze and evaluate Tax
Increment Financing proposals based upon the following policy
considerations. Each project shall be measured against these
co::eideratione and the project's value shall be determined, based
upon meeting these considerations.
1. The project shall be consistent with the City's Comprehensive
Plan.
2. The project shall demonstrate long-term economic and/or
housing benefits to the community.
3. The project shall create and/or retain employment for
Monticello residents.
4. The project shall increase moderate priced housing options for
area residents.
b. The project shall facilitate the redevelopment or elimination
of "substandard" or "blighted" areas as determined by the HRA.
8. The project shall facilitate the "clean-up" of environmentally
unsound property.
T. The piojoct shall provide additional public funding for public
improvtments including utilitioo and/or park development which
would not otherwise be available.
8. The project shall be deemed to promote additional dosired
"epin-off" development.
HRA ACEHDA
AUGUST 2, 1995
7. ron31deration of Prrspert LJa4it.�•s_
a} Gary Singer - City staff met with the two partners of
thio wholesale dealer of plumbing, wells, and septic
supplies. The company proposes to con3truct a 20,000 sq
ft warehouse/office with future plans for a showroom.
The company has contacted Charlie Pfeffer for
approximately 2.6 acres of T-1 propNrty along Fallon
Avenue. The 17 -year old company has facilities locat:ud
In Hopkins, Egan, and Blaine which combined t3 over
40,000 sq ft. The company employs 70 full-time personnel
and the Monticello lorarion would employ . , within 2
years. Interested in TIF or financial asoistance. As
Indicated by a new provision to the TIF law, the HRA is
unable to consider TIF because for land which has had a
green acre classification for the past 5 years the
Economic District must be created for manufacturing john
only. The company continues to negotiate with Charlie
and is interested in other assiotance (GMEF). (High -
interest level.) ADDITION 7-27-95 - Steve Krrn.,
President of Midweut Graphics, has an option of the a,
acres to the north of their location at 9530 Fallon
Avenuo; therefore, Singer Is conuidering 2-3 arres north
of the propnsed Dundas Rnad extension.
b) David Menke - Thin inquiry from Towle Real Estate In May,
1995, wao for a 150,000 uq ft warehouse and 7,500 sq ft
office., 10 acres. Starting wages Moo. nn July 27, Mr.
Monks called inquiring about the avallahillty of tit,
labor force. The projoct app aro ton hove in-:reaL4vd t,.
225,000-250,000 eq ft, 20 ncreo. Thio to a dlutrlburlon
center for a Twin Citioo manufar..turer of small iirodnct:
Mr,y include relocation of headquarters.
r.) Brad Larson - I did contact Brad regarding his to
the poet office owner and tenant, Jack Hutrhinunn, lec.rl
poutmaoter, paosed the letter on to the owner. Brad hart
a telephone c l] from r.ho nwncWu buainreo manauur
requouting pruviouu written vorreupondent.o relating to
the concerns of the joint -utilized driveway. Brad
indicated there wore sono. Thu tather (owner) piiuued
away and the buainens manager Is repro,zenting thrr. upn.
Brad auked if thu C1ry would CONSIDER A TEMPORARY
drive• way with accet4u to Linn Struot for pnut.il use.
d) Factory outlet mall - Per telephone eonversationu, Letter
of intento or pruponnls roluting to land arqul�iltion hay. -
boon rocelved from Shawn Weinard, ciwner of Monticnllu
Commerce Conter and from the owner of the property In
Clearwater. Major roncerus: Mont iw] i. l.lv;
funding of a full -interchange and Clearwater nits
completion and funding of utilitico. nilly two uitc:u
Page 1
i HRA AGENDA
AUGUST 2, 1995
undc,.r consideratlon by the devuloper. Financial options
for funding an interchange waro researched by City Staff.
Site search taking longer than dow lopers anticipated.
P.+go- 2
f
�a PUBLIC RESOURCE
GROUP, INC.
June 30, 1995 Marketing, Development & Firo we Sperialisu
Ms. 011ie Koropchak
City of Monticello
250 Fast Broadway
P.O. Box 1147
Monticello, MN 55362
STATEMENT
Consulting Services --May 16, 1995 through lune 15, 1995
4-30-95 LPK--Information regarding costs of TIF modifications, memo to 011ie In
NET CHARGEABLE HOURS:
Net Chargeable Hours ® $75/Hour
.75
$56.25
TOTAL AMOUNT DUE Ma
CURRENT OVER 30 OVER Q OVER
$56.25
TERMS: NET DUE UPON RECEIPT, 1.33% PER MONTH SERVICE CHARGE ON
PAST DUE ACCOUNTS
4205 Loncaster Lane North 0 Suite 1100 4 Minneapolis, Minnean S5441 6(612)S%7979 • (612) 5%9221 Fax
a
C P PUBLIC RESOURCE
GROUP, INC.
Marketing, Development 6i Fina= Specialists
June S, 1993 .
Ms. 011ie Koropchak :
City of Monticello
: 250 Fact Broadway
P.O. Box 1147
= Monticello. MN 55362
:
_ STATEMENT
Consulting Saviors—April 16, 1993 through May 15, 1995
;
4.20-95. LPK—Follow-up with 011ie and Dean Hogland regarding
Decorative Services
..75
4-21-95 LPK—Follow-up with 011ie regarding Decorative Services
follow-up with Moen L.euer (developer prospect)
.50
4-23.95 LPK—Cash flow statement for Decorative Services facility
1.00
4-27-95 LPK—Loren Brueggeman regarding Decorative Services, fax
infortnafm and financial information
1.00 •:
5-2-95 LK—Decorative Services follow-up developer contacts ' '.
•.75
5-493 • LPK—Follow-up with 011ie, Jennifer Host., �arding
: e Decorative Services, staof projct
rI1
• NET CHARGEABLE HOURS:
4.75.
Net Chargeable Hours ® 575/Hour
- 'S356.25
TOTAL AMOUNT PAST DUE:
5336.23
TOTAL AMOUNT DUE
1 CURREOVER OVER OVER
5356.25 $356.25
TERMS: NET DUE UPON RECEIPT, 1.33% PER MONTH SERVICE CHARGE ON
PAST DUE ACCOUNTS
4205 Lanmster Lane North * Suite 1100 • Mlnneapolie, Minnesota $5441 • (612) 5567979 • (612) 5549221 Fax
t
'�A Q`C�
HOLMES at GRAVEN
aurterod
200 Sous Stith Scat, Sulu 470
MUmawk MN SS402
(612) 377-9300
June l5, 1995
City of Monticello
PO Box 1147
Monticello, MN 55362-9245
MN190-00041: Redevelopment -General
Invoice 9 2672
Through May 31, 1095
For All Legal Services As Follows:
05/08/95 SJB Phone call with 0. Koropchak re TIF
0.50
62.00
05/12/95 SJB Phone call with 0. Koropchak re TIF legislation
0.30
37.20
status
05/17/95 SJB Phone call with 0. Koropchak and L. Kirscht rc
0.30
37.20
TIF modifications
05/24/95 SJB Review TIF bill and draft summary
0.40
49.60
05/25/95 SJB Draft Summary of TIF Bill
1.00
124.00
0526/95 SJB Finish TIF Summary
1.00
124.00
05/30/95 SJB Meet with law clerk re TIF policy question
0.30
37.20
05/30/95 JPF Research re constitutional limitations of ordinances
1.50
93.00
with local hiring preferences
05/31/95 JPF Research constitutional issues re ordinance TIF
7.50
465.00
provision
Total Services:
$
1,029.20
Attorney Summary
Judite P. Fluger 9.00 62.00/hr
558.00
Stephen Bubul 3.80 124.00/hr
471.20
Total Services And Disbursements: S 1,029.20
IeetuW. uMr per of lar
0' t adorm or dommd
to od .anod aid tam no Pon
of 4 has lean paid.
7
HOLMES 8i GRAVEN
200 Sown Shah Save, Sulo 470
MWupa6, HN SS402
(611)337-9300
June 15, 1995
City of Monticello
PO Box 1147
Monticello, MN 55362- 1 q
MN190-00 : Senior Housing TIF . ST
Invoice Al 2907
Through blay 3:, .995
For All Legal Services As Follows:
05/31/95 SAB Phone call with O. Koropchak and D. Gustafson m 0.60 74.40
TIF modification
Total Services:
Attorney Summary
f 74.40
Stephen Bubul 0.60 ® 124.00/hr 74.40
Total Services And Disbursements: $ 74.40
�bft ' wtla pauay of law
a a" charm. Calm w domaM
kW and arrea aid die no per1
0luh boon paid.
�BYandq
KENNEDY a GRAVEN
,y 200 South spm Sne, surae 470
\ v ti,namoae, wr SS402
(612) 337.9300
�L July 20,1995
City of Monticello
PO Box 1147
Monticello, MN 55362-9245
MN190-00048: Senior Housing TIF
Invoice k 4954
Through hm:30, 1495
62.00
For All Legal Services As Follows:
06/01/95
SJB
Draft Resolution; review PRG TIF proceedings
06/02/95
SJB
Revise Contract
06/04/95
SIB
Finish revisions to Contract, Subordination
0.20
24.80
Agreement. and Housing Agreement; letter to
37.20
$
client
06/06/95
SJB
Phone call with O. Koropchalt re contracts
06/07/95
SJB
Review City TIF resolution; phone call with O.
Koropchalc and D. Gustafson
06/07/95
SJB
Review City 71F resolution; phone call with O.
Koropchalc and D. Gustafson
06/08/95
SJB
City resolution re Development Contract
06/14/95
SIB
Review contract changes
Total
Services:
Attorney Summary
Stephen Bubul 7.10@ 124.00/hr
For All Disbursements As Follows:
06/04/95 Photocopies
06/05/95 Messenger Service
Total Disbursancnts:
t.? a..unserOW^o'6-
e.�--4
d I� ane corroa cele uu,+ om
as
r
Total Services And Disbursements:
0.50
62.00
1.50
186.00
3.50
434.00
0.50
62.00 '
0.30
37.20
0.30
37.20
0.20
24.80
0.30
37.20
$
880.40
88040
63.00
37.61
S 100.61
KENNEDY 8[ GRAVEN
C` a.,ured
200 SouN Snah Saeee, Suke 470
Mlmuwoft MN 55402
(612) 337-93W
July 20, 1995
City of Monticello
PO Box 1147
Monticello, MTI 55362-9245
MN 190-00041: Redevelopment - General
Invoice # 3570
Through June 30, 1995
For All Legal Services As Follows:
06/02/95 JPF Research constitutional issues re City TIF 4.30 266.60
06/04/95 JPF Research constitumional law issues re ordinance 3.50 217.00
concerning TIF
06/05/95 TPF Research constitutional law issues re TIF ordinance 4.00 248.00
06/11/95 SJB Research TIF criteria question 0.50 62.00
Total Services: f 793.60
Attorney Summary
Judite P. Fluger 11.80 62.00/hr 731.60
Stephen Bubul 0.50 124.00/hr 62.60
For All Disbursements As Follows:
05/31/95 Photocopies 1.00
Total Disbursements: S 1.00
Total Services And Disbursements: S 794.60
1 �e� under Pwudpr Of lane
N i asaau. dehn w dwmW
and IMt pat
� - -Qt5
Gary Singer. 935-0445, FAX 935-7666
Pipeline Supply, Inc. - 620 16 Avenue South, Hopkins, MN
Plumbing, heating, well, and septic wholesale supplier
17 years of business. Current location in Hopkins, Egan, Blaino.
Total of 70 full-time employment. Average wage of warehouse
person, $10.00 plus benefits. Owners live in Delano and Plymouth.
ASSUMPTIONS:
20,000 eq ft office/warehouse (FABCON)
700-1,000 eq ft office (potential showroom expansion i:i future)
Outdoor storage necessary. Five -six employees in two years.
Occupancy March, 1996.
2.6 acres of Monticello Commerce Center, I-1 Zone.
ESTIMATED MARKET VALUE:
Building: 20,000 sq ft X $25.00 = $500,000
Land: 2 acres or 87,120 eq ft R $.40 e $ 34,848
26,136 sq ft o $.25 = $ 6,534
ESTIMATED MARKET VALUE $541,382
ESTIMATED TAXES:
$100,000 $441,382
.0300 .0460
$ 3,000 $ 20,303
NEW CAPACITY VALUE S23,300
1995 TAX RATE 1.13028
ANNUAL ESTIMATED TAXES $26,335
26,335 X 9 YEARS - $237,015 X 301 _ £71,104
SUGGESTED TIF ASSISTANCE: Land write-down $40,000 ($15,384 per
acre) .
Site improvements $10,000.
Mark, will this qualify for TIF assistance (Economic District) and
So the tax Increment sufficient to cover tho assistance suggested?
Ploase roopond in Net Prooent. Vnlnc, estimate HACA Loss, and
suggest TIF Budgot.
Thanks, 011ie.
JUN 23 '95 11:46W 04 -ERS 8 ;GSOCIATM P.2/4
Publicorp Inc.
`So Norwest CAM& (612) 3398291
1.J South Seventh Street FAX (612)339-0854
Mkweapolb. MN SS402-4100
Jane 23, 1995
TO: 011ie Kompchek. City of Monfmtlo
FR. Mark Rust
RE: Pipeline Supply
As requested, we have prepared a tax int projection for the Pipeline Supply project Attached is the
two pap projection which includes assumpdoes on page 1 and the crab floor on pegs 2. As you can see on
page 2, the prweat value of the tax increment which is available for the development ova 9 years of
ioceemem, after 20% is taken by the City, is nearly $100,000. Therefols, there is mora than adegwm tax
increment to meat the suggested assistance amount of SS0.000.
This project would qualify a an economic development district because 95% of the buiidieg will be used
for warehouse tpaoe. However. we do need to verify that this lad hes not been classified by the assessor
as free► arcs, agrieuWW preserves or open space within the to five years. A new provision of the law
is that only mawfxnviog uses can qualify a economic development districts in property which has Own
elsssiftstions. to addition we need to verify the assessors market value for =es payable in 1996 for this
Property.
We anticipate taus of approximately 326,200 per year and tax mens at 322,780 per year. we are
estimating that approximately 60% of the value would be in place for taxes payable m 1997 with the
remaining amount completed for taxes payable in 1998. Using a 93% as present value este, we ate
estimating that the SS0.000 of assistance could be paid within four years of imemaat. This eseimata
assumes that 20% of the ouruel tax iecrommt is taken by the City.
It is important to note that the 1995 JeWslaaum gave cities the opportunity to not be tubject to the LOA
pmtatty (f the city makes a local contribution to the project equal to 10% of the tsar increment It hu sot yet
been determined by the Department of Revenue how this money will need to be pus into the "but it is
clear that the city timds cannot be tax increment. However. % e are comfortable that the city will be able to
take 10% of project funds for administrative costa ad tr nMr that amotmt for overhead costs Into the
general flrnd. theefo m, them is no net loss to the gaurel Amo but time to no additional funds available
for county or city administrative costs. It may be possible to bill the developer for therm costa directly.
Please review Uro a twbW documents and call with my questions or comments
0
in n o iaom vA& Ehh n and Aoodatss, lrte.
OerlSfae City d Mafbsso - Ta. tncrr Eatkason - Posses stv*
T.I.R. CASH FLOW ASSUM"IONS
Welton Rats: 0.0000%
a Pay -Aa -You -Cao kderest Hate: 9.500%
Tax EaAermbn Role: 113028% Pay 95
BASF VALUE INFORMAIrION
Grins Percent Nal Payable
Value Used Vsaue Your _
Parcel A 777 Original Market Value 28,000 100.00% 28,000 Pay 88 ---Estimate
_ 0 0.00% 0
TOW Original Marked Value 2� 000 _ 20AM POM — ---
Class Rab: CA Property, 1100.000 1.6000% Pay 96
•1100.000 30000%
Orig" Tax Capacity: 610 Pay 98
PRO.IF.CT VALUE INFORMATION
Type of Tax btcremenl District:
Typo of Devokopmerd:
Number of Units:
Number of Square Feet:
Estimated Us" Value On Jan, 2.1998:
New Estimated Markel Value On Jw 2, 1997:
Fired Market Value of Land and Buldbp:
"ad Class Rate: CA Property, •1100.000
'1100.a0D
Woorwertic �
oma"
fBedWar—�— -�
etxwso
0
20.000
Estimated Tax Capacity on Jan 2. 1999:
Additional Eslynaled Tax CapwAy an Jan 2 1997:
Total Prajed Tax Capacity al Compldlm.
Project Taxes Par Uri7Square Fool:
Assessor's Market Value Per Unal9quars Fad:
Proicci Total Taxes for Estimate Purposes:
Amual Tax Inuarronl Expocked at Fro Value:
SUMMARY INFORMATION
Gross T I. Cly Gy
Net T 1.
_ in RO ed _ Admin- _ PooB* _
To PnAeed
Future Value: 217,108 (21.717) (21,717)_
173.973
F40809 Value. 122.859 (12,288) (12.188j_
_ BB. B71
310,000 Pay 97
200,000Pay 96
_�r.(�. Pay 98
1.8000%
3,0909%
11,010 Pay97
8,200 Pay 98
23,210 Pay 98
$1.31
12700
26,288 Pay 98
22.786 Pay 08
Peps 1
LOC IDD 02 Praerae W Pxmmxa s¢ PrPF r
06/2Y95
GIl' of NorVlroao - Tu Ir
it E.G.Aes - Spefim 6uppfy
TAX INCREMENT
CASH FLOW
� ^
Orig.
Project
Capaced
Senn -Annual
Admin. Serni-Arcwal
City
Pay -Ar
NPV of
PERIOD BEGMkING
Tax
Tax
Tax
Gross Tax
at
Nal Tax
Pooling
You -Go
PAYG
PERIOD ENDING
Yrs. Mth.
Yr.
Cfpardt--capacity
___
Capecdy_
Increment
10.00%
hwemont
10.00%
Note
9_50%
Yrs. Mth.
Yr.
0.008-01
1995
840
840
0
0
0
0
0
0
0
0
05 02-01
1896
0.502-01
1996
840
84D
0
0
0
0
0
0
0
0
1008-01
1998
1.0 08-01
1996
84D
840
0
0
0
0
0
0
0
0
1.5 02-01
1997
1.5 02.01
1997
840
14,040
0
13,200
7,460
(746)
8,714
(746)
5,968
4,957
2.0 08.01
1997
2.006-01
1997
840
14,D40
0
13,200
7,460
(746)
6,714
(746)
5,968
9.689
2.5 02.01
1998
2.5 02.01
1998
840
23,240
0
22,400
12.658
(1,286)
11,393
(1,266)
10,127
17,355
30 08.01
1998
3.000-01
1999
940
23,240
0
22,400
12,659
(1,266)
11,393
(1,266)
1.127
24,673
3.502-01
1.999
3.502-01
1999
640
23,240
0
22,400
12,859
(1,266)
11,393
(1,266)
10,127
31,660
4009-D1
1999
4.008.01
1999
840
23.240
0
22,400
12,659
(1.266)
11,393
(1,266)
10,127
38,33D
4502-01
2DD0
4.502-01
2000
840
23,240
0
22,400
12,859
(1.266)
11,393
(1,266)
10,127
44,897
5008-01
2000
5,008-01
2000
840
23,240
0
22,400
12,659
(1.266)
11,393
(1,266)
10,127
50,775
5,5 02.01
2001
5.502-01
2001
640
23,240
0
22,400
12,659
(1,266)
11,393
(1,266)
10,127
56,578
6008.01
2001
6.008-01
2001
910
23,240
0
22,400
12.659
(1,266)
11,393
(1,286)
10,127
62.118
6.60'2.01
2uui
6502-01
2002
640
23.240
0
22,400
12,859
(1,266)
11,393
(1,266)
10.127
67,407
7.008-01
2002
1.008-01
2002
910
23.240
0
22,400
12,859
(1.286)
11,3D3
(1,266)
10,127
72,455
7.5 02-01
2003
7 6 02-01
2003
640
23,240
0
22,400
12,659
(1,266)
11,393
(1,266)
10,127
77,275
8.0 08-01
2003
8.008-01
2003
910
23,240
0
22,400
12,659
(1,288)
11,393
(1,266)
10,127
81,876
9.5 02-01
2004
8.502-01
2004
840
23.240
0
22,400
12,659
(1,266)
11.393
(1,266)
10,127
86,269
9.0 08-01
2004
9008.01
2004
840
23,240
0
22,400
12,659
(1,286)
11.393
(1,266)
10,127
90.462
95 0201
2005
N 9.502-01
20D5
840
23,240
0
22,400
12,659
(1.268)
11,393
(1,286)
10,127
",466
100 08-01
2005
10008-01
u
2.005_
640
23,240
0
22,400
12,859
(1,266)_
11,393
(1_2661_
10,12788,287
105
2006
Tc4b_
217__466
121,747)
195,71�21,T47)
173,973
_02-01
_
Praaent Vsluos
_
122,859
(12 286)
110 573
X296)
96 287 -
Page 2
NC11rr02 PMWOO by Pw4xup xK Pipt I
AU—P a Iw
RRmT A. AIORT
Yowl a. BATTT
JRol6 DRAM
MALT G. DORRRn
CURUM A. Hina
DAM J. KMW=y
CRAMAX L LAS% t[
Jnmt M. IAMM R
Rom= J. IamAU
It M. ST90MMM
011ie Koropchak
City of Monticello
250 East Broadway
Monticello, MN 55982-9245
Dear 011ie:
KENNEDY & GRAVEN
CHARTERED
Ra eom„ camMho am
(AGI UTAJM
JAS J. TNDMM L JL
=Ao1Ab IAu) JJ7dlu
LAM AL wnTttmt
80MM L NRAM
JOB T. TAoo
DAVM L(ZVOi Mmnil
WRJTE" DIRECT DW.
OmtOlm.
202MC. CA�IAaI
June 16, 1995
T
H. LAW
T. JAY CAUm1
As a valued client, you have known us as Holmes & Graven.
Today, we become Kennedy & Graven.
David Kennedy, formerly the president of the distinguished firm of LeFevere,
Lefler, Kennedy, O'Brien & Draws which merged with Holmes & Graven in 1988,
becomes a named principal. Jim Holmes & Stefanie Galey leave to form Holmes & Galey
- a venture in which our 16 attorneys and 18 staff members wish Jim and Stefanie
great success.
This change represents a change in new and a slight change in composition, but an
unchanged commitment to providing exceptional legal representation to governmental
entities like yours.
We are looking forward to this opportunity. In the next six months, you win hear
more about those opportunities and about us. As you do, we welcome your inquiries.
On behalf of all 34 of us, thank you for looking to us for counsel and representation.
Best •�hes, L
�M EJV
St on J. Bubul
MINOR
FEW$