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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$