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HRA Agenda 12-06-1995AGENDA MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY Wednesday, December 6, 1995 - 7:00 p.m. City Hall MEMBERS: Chairperson Al Larson, Vice Chairperson Brad Barger, Everette Ellison. Tom St. Hilaire, and Roger Carlson. STAFF: Rick Wolfsteller 011ie Koropchak, HRA Executive Director CONSULTANT: Steve Bubul, Attorney 1. CALL TO ORDER. 2. CONSIDERATION TO APPROVE THE OCTOBER 4, 1995, AND NOVEMBER 1. 1995, HRA MINUTES. 3. CONSIDERATION TO CONTRACT WITH PUBLICORP, INC. FOR SERVICES RELATING TO TIF. 4. CONSIDERATON OF AN UPDATE RELATING TO MODIFICATION OF THE CENTRAL MONTICELLO REDEVELOPMENT PLAN FOR ACQUISITION OF ADDITIONAL PROPERTIES WITHIN THE REDEVELOPMENT PROJECT PLAN NO. I BOUNDARIES AND MODIFICATION OF THE TIF PIANS FOR TIF DISTRICT NOS. 1-1 THROUGH 1-19 AND CALLING FOR A PUBLIC HEARING. 5. CONSIDERATION OF AN UPDATE RELATING TO TIIE DOWNTOWN/RIVERFRONT REVITALIZATION PRESENTATION BY THERESA WASHBURN AND THE CONSIDERATION TO DISCUSS TIIF; POTENTIAL OF AN HRA LOAN TO FUND ONE-YEAR CONSULTING FEES FOR THERESA WASHBURN. 6. CONSIDERATION TO REVIEW THE APPRAISAL FOR LOTS 1,23,445, BLOCK 64 AND N 40 FT OF VAC RIVER ST LY S OF BLK 64 AND TO AUTIIORIZF. PREPARATION OF A PURCHASE AGREEMENT. 7. CONSIDERATION TO RATIFY THE EXECUTION OF THE SUBORDINATION AGREEMENT BETWEEN THE HRA AND FIRSTAR BANK AND THE LICENSE AGREEMENT BETWEEN THE HRA AND VECTOR TOOL. M. CONSIDERATION TO AUTHORIZE PAYMENT OF THE TIF PAY-AS-YOU- GO REIMBURSEMENTS FOR MARTIE'S FARM SERVICE AND CUSTOM CANOPY, INC. �r 9. CONSIDERATION TO REVIEW REQUEST BY THE H-WfNDOW RELATING V TO TIF REIMBURSEMENT. 10. CONSIDERATION TO REVIEW REQUEST BY RON MUSICH RELATING TO ADDITIONAL TIF ASSISTANCE. H. CONSIDERATION OF ACCEPTANCE FOR 1996 APPOINTMENTS AS COMMISSIONERS OF THE HRA FOR SUBMITTAL TO THE CITY COUNCIL. 12. OTHER BUSINESS: a) Approval of Bills: Publicorp, PRG, and Kennedy & Graven. b) Other: Brad Larson Wiha Tools Pipeline Supplies 13. ADJOURNMENT. I MINUTES MONTICELLO HOUSING AND REDEVELOMENT AUTHORITY Wednesday. November 1. 1995 - 7:00 p.m. City Hall MEMBERS PRESENT: Chairperson AI Larson, Vice Chairperson Brad Barger, Everette Ellison, and Tom St. Hilaire. MEMBER ABSENT: Roger Carlson. STAFF PRESENT: 011ie Koropchak. GUEST: Bill Tapper, Genereux Fine Wood Products. Inc. I. CALL TO ORDER. Chairperson Larson called the November I. 1995. HRA meeting to order at 7:00 p.m. 2. CONSIDERATION TO APPROVE THE OCTOBER 4-1995- HRA MINUTES, The minutes were not prepared for approval. a 3. CONSIDERATION TO REVIEW THE MODIFIED FINANCIAL PROPOSAL FOR THE TAPPER'S EXPANSION PROJECT AND APPROVE AMENDING THE AMENDED PRIVATE REDEVELOPMENT CONTRACT. Upon the request of the Tappers and for completion of the financial package relating to the proposed 18.000sq R manufacturing expansion, the HRA considered amending the amended Private Redevelopment Contract. In January, 1995, the HRA amended the original Private Redevelopment Contract to assist the Tappers with E30.000 of site improvements relating to the planned expansion. Bill Tapper informed HRA members that the planned expansion did not occur in 1995 because they determined further investment was not a wise decision. at that time, due to a fluctuating housing market. Since mid -summer the housing market has picked -up and the owner sees the overall economics of the housing market having stabilized; therefore, the Tappers are proposing their expansion for 1996. Due to timing and 'increased costs of construction, the total expansion project costs increased (use and sources). Currently, the Tappers are leasing space from Jay Morrell. Page 1 HRA MINUTES NOVEMBER I, 1995 Today, the Tappers are requesting TIF assistance in the amount of $25.000 for site improvements relating to the proposed 1996 expansion. Estimates indicate the increased tax increment generated from the expansion during the life of the district is sufficient to cover the requested assistance. Also. the Tappers are requesting SI00,000 of GMEF dollars, this request will be reviewed by the EDA on November 28, 1995. The expansion is estimated to create 15 new jobs. Tom St. Hilaire made a motion to amend the amended Private Redevelopment Contract and Assessment Agreement for TIF assistance in the amount of $25,000 payable upon 90% completion of the additional improvements, expansion construction beginning in 1996 and fully assessed by January 2, 1997, for taxes payable in 1998 and 1999. The new estimated market value for the land and building IS $1,225.000. Brad Barger seconded the motion and with no further discussion, the motion passed unanimously. 4. CONSIDERATION TO REVIEW THE APPRAISAL FOR LOTS 1.').3.4& 5 BLOCK 64 AND N 40 FT OF VAC RIVER ST LV S OF BLK 64 AND TO AUTHORIZE PREPARATION OF A PURCHASE AGREEMENT. HRA members reviewed the buildable area of the property in relationship to setbacks and determined the buildable area was confined to a portion of I or 2 lots at the maximum. The property consist of 5 lots. Members compared the appraisal to the price of the housing stock of homes for sale along the river. One member was not convinced that to remove an older home from the tax role for the purpose of a public park was a wise move. Some members felt the appraised value of S163.000was high. The conclusion and consensus of the HRA members was to table any action until after the RiverfronUDowntown Revitalization presentation of November 16 or adoption of the Comprehensive Plan Update. 5. 5'; -%(WA 3401 HRA members asked if the property taxes were current and if the City Building Official could enforce cleanup of the property. Koropchak reported the City was able to apply sufficient pressure relating to safety and hazard issues of rental property owned Clifford Olson. Thereafter, Mr. Olson elected to demolish his property along Highway 25 South. The Kotzmarek property is owner -occupied. The HRA views the property as substandard and redevelopment of the property would be in the best interest of the public. In this case, the HRA recognized the removal Page 2 HRA MINUTES NOVEMBER 1, 1995 of the substandard taxable parcel was a greater benefit than the collected tax revenue. Additionally, the value of the adjoining properties should increase with the creation of a public park. Ko,vpchak informed members that upon Steve Bubul's review of the Central Monticello Redevelopment Plan, the Plan provided no provision which allows the HRA to acquire property outside a T1F district. Therefore, the Plan needs modification prior to beginning the the condemnation process. Brad Barger made a motion to move forward with amending the Central Monticello Redevelopment Plan for acquisition of additional properties within the Redevelopment Project No. I boundaries and to amend the TIF Plans of TIF Districts No. 1-1 through 1-19 and calling for a public hearing. Everette Ellison seconded the motion and with no further discussion, the motion passed unanimously. Enclosed with the agenda was an itinerary of the three-day visit of Theresa Washburn. 'Theresa has been mailed slides of Monticello's downtown area and a copy of the Comprehensive Plan Update. Upon meeting with several local organizations, an assessment walk of downtown, and a tour of the community; Theresa will prepare her presentation for the evening of November 16. 1995. HRA members were encouraged to participate and encouraged to invite the community: family members, neighbors, etc. Approximately 5,600 fliers will be distributed through various organizations, the elementary schools, Maus Foods, the shopper, and at Expo. Tom St. Hilaire made a motion authorizing payment of consulting fees and expenditures relating to the grassroots approach presentation by Ms. Washburn. Everette Ellison seconded the motion and with no further discussion, the motion passed unanimously. CONSIDERATION OF AN UPDATE RE LATIN G TO TH . HRA LEWFR OF OCTOBER 20-1995. TO COUNCILMEMBERS. Koropchak updated the HRA members of the process to consider consolidation of the HRA and the EDA. The EDA will review the issue at their November 28 Page 3 HRA MINUTES NOVEMBER 1, 1995 meeting: thereafter, will the Council consider all recommendations for direction of commission appointments in January, 1996. r. .I:: :-.n 61011 .• . 012 l• r. 1 i .� • t. „t�l.r Administrator Wolfsteller requested the HRA consider enforcement of their agreement with Metcalf/Larson relating to the 20 ft easement. If the HRA has no plans to enforce their agreement, Mr. Wolfsteller may bring the matter before the City Council for consideration to block -off the City -owned property behind the Metcalf/Larson building or for the Council to consider a temporary access through the old Hass property. HRA members felt the benefactor of the 20 ft easement was the Post Office and perhaps they should consider entering into a maintanence agreement with Metcalf/Larson. HRA members suggested Koropchak invite Brad Larson to the December HRA meeting to determine the HRA's role if any. 9. OTHER B SIN cs• a) Authorization to pay bills -'Ile HRA monthly bills. b) Koropchak invited and encouraged NAHRO Conference on November interest if his calendar was clear. The HRA meeting adjourned at 8:00 p.m. OQ`<dl"'Q" o" 011ie Koropchak, Executive Director Page 4 authorized payment of the enclosed members of the HRA to attend the 30. Chairperson Larson expressed MINUTES MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY Wednesday, October 4, 1995 - 7:00 p.m. City Hall MEMBERS PRESENT: Chairperson Al Larson, Vice Chairperson Brad Barger, Tom St. Hilaire, and Roger Carlson. MEMBERS ABSENT: Everette Ellison. EXECUTIVE DIRECTOR: 011ie Koropchak. CITY STAFF: Jeff O'Neill. GUESTS: Steve Bubul, HRA Attorney Mark Ruff, Publicorp, Inc. Dick Frie, Planning Commission Chair Rich Carlson, Planning Commission Member Chairperson Larson called the HRA meeting to order at 7:00 p.m. Q 2. CONSIDERATION TO APPROVE THE SEPTEMBER 14.1995_HRA MINUTES. Brad Barger made a motion to approve the September 14, 1995, HRA minutes. Roger Carlson seconded the motion and with no corrections and additions, the minutes were approved as written. 3. OLD BUSINESS: a) Confirmation of TIF Reimbursement to Russell and Sharon Martie. HRA members acknowledged that the $7,300 TIF Reimbursement due Russell and Sharon Martie was paid via a copy of the check dated September 12, 1995. The reimbursement was for 1992,1993, and 1994 as per the Private Redevelopment Contract. b) Consideration to review for followup the second notice mailed Jay Morrell relating to the TI Guarantee deficiency. Chairperson Larson asked if this was a matter to be resolved between the developer and the City Council or Administrator. Attomey Bubul responded, "No, the original Redevelopment Contract was between the HRA and Ron and Dee Johnson." The original Tl Guarantee was $20,000 and was later modified to $29,000. When the property was later sold to Plaistad/Morrell and later to Morrell; the redevelopers, City, HRA, and Asssessor agreed to reduce the EMV to within a range of the foreclosure/purchase price. Page I HRA MINUTES OCTOBER 4, 1995 However, the TI Guarantee remained at $28,000. The problem with the modified agreement is no provision exist stating if the redeveloper defaults, the redeveloper is liable for the HRA legal fees. Attorney Bubul continued if the HRA filed a claim against Morrell, the legal costs to collect may outweigh► the Tl Guarantee shortfall of $12,517.93 for expired TIF District Nos. 1-1 and 14. The modified agreement was drafted by the 1989 City Administration. With the given information, the HRA elected not to file a claim and directed Koropchak to contact Morrell for a personal conversation to resolve to the shortfall. C) Consideration to review for followup the September 6,1995, letter from Brad Larson. Mr. Brad Larson's letter indicated a willingness to provide the 20 -foot easement for ingress and egress per the commct; however, since this was a public easement they felt the maintenance might be home by the city. The HRA members agreed to continue the "wait and see approach" since the maintenance item is between the two property owners Larson/Metcalf and Cinco Corporation. Koropchak drafted the September 27, 1995 letter to Cinco Corporation for clarification purposes only. 4. NEW BUSINESS: a) Consideration to discuss for potential purchase the property described as Lots 1,2,3,4,&5, Block 64 and N 40 ft of vac River St ly S of Blk 64 - Jeff O'Neill reported that the Parks Commission was supportive of the HRA acquiring this parcel along the Mississippi River for use as a public park because of the high demand for parks, increased useage of the Bridge and Ellison Parks, and green space would compliment an area redevelopment project or a downtown redevelopment project. Additionally and although purchase price is unknown, this may be an opportunity for use of TIF Surplus. Rich Carlson, representing the seller, informed HRA members of his awareness as a Planning Commission member that this property or area was identified as a problem within the City Comprehensive Plan. At first the sellers were reluctant to accept the idea of their home being purchased for possible demolition; however, more recently the sellers have different thoughts. Additional comments by Rich Carlson were the couple were reluctant to attach a purchase price. The Ira has 330 feet of river frontage which r►ms $400.5600 per linear foot. Time frame is good. Do not push sellers allowing adequate time for the sellers to find new place. The tum -of - the -century home could be moved. The garage was totaling destroyed in wind storm. Page 2 HRA N 1NLTTES OCTOBER 4, 1995 Anomey Bubul informed members that the HRA could acquire the property, deed the property to the City for public park (public purpose), and must inform the sellers of their rights to relocation costs. As willing sellers the relocation costs would be waived, otherswise, a relocation consultant is hired to establish relocation costs. It was highly advised that an appraisal be obtained to establish some reasonable basis of a price as this is a public purpose project. A resolution would be adopted prior to demolition to establish a three year window which allows the demolished structure to qualify within the test for establishment of a Redevelopment District. Tom St. Hilaire voiced a middle-of-the-road position to move forward with acquisition. This an expenditure and he prefers promoting new business, a revenue. T'he remaining three members voiced an opinion to proceed because the property would compliment a potential rive:rfront/do%wown redevelopment project or a redevelopment project of high -rate townhomes as identified as a goal of the HRA two years prior. A figure of $180,000 with garage was mentioned by the seller's agent as not out -of -line for starts. Brad Barger made a motion authorizing an appraisal of the described property. Tom St. Hilaire seconded the motion and without further discussion, the motion passed. Yeas: Brad Barger, Tom St. Hilaire, and Al Larson. Nays: None. Abstention: Roger Carlson (Potential conflict of interest. Rich Carlson, the seller's agent, is brother to Roger.) Rich Carlson advised the HRA that the property is not available for public auction up to a maximum of one year. b) Consideration to review the feasibility study and recommendations as prepared by Mark Ruff of Publicorp. Inc. relating to the Prairie West/KnMmarek and Olson properties - Mark Ruff reviewed the written information provided in the agenda and informed members the Olson property in the 500 block of East Broadway is a likely parcel for redevelopment. Patterned after the Richfield program, single parcels are purchased by the HRA from volunteer sellers. Demolition occurs and parcels sold to pre -arranged interested builders. The HRA creates a Redevelopment District through cooperation with the County which includes about 10 identified parcels for redevelopment. Average purchase price is $000Uto $50,000with demolition costs of a couple thousand dollars. The builder purchases the mw land for approximately $25,000 from the HRA and the new home generates about $25.000 over the life of 25 -year district. Page 3 HRA MINUTES OCTOBER 4, 1995 A new home of greater market value is build and encourages the neighborhood to make improvements. Mark recommended local criteria be established: Define the market, market volunteer sales, find builders, establish minimum new market values, and identify several parcels for district which are agreeable to Council and staff. Downsides are a parcel may contain soils with environmental issues. HRA members recognized this programs works based on all assumptions and the market being right, an HRA may re -gain the value but not the cost. Planning Commissioner Carlson felt redevelopment of single homes along Broadway was not marketable because of the heavy traffic and felt the area should be rezoned to enlarge the downtown area as part of the updated comprehensive plan. Next, Mark Ruff informed the HRA members that the Katzmarek property in itself qualified as a redevelopment district. However, if the properties to the east were included to increase the tax increment revenue, the area would not qualify as a redevelopment district because a resolution was not adopted by the City prior to demolition of the old Gille structures and removal of tanks. However, the HRA can acquire. demolish. and deed the Katzmarek property to the City for a public park as it ties within the Redevelopment Project No. I boundaries. Rich Carlson and Koropchak informed the HRA members of the conversation between Mr. Katzmarek and John Kamerek relating to an interest for a trade/pun.base arrangement. Mr. Katzmarek was not interested in relocating to the township on property similiar to his current surroundings. HRA members recommended Koropchak contact Mr. Katzmarek for a mating between Chairperson !.arson, Kawnarek, and Kompchak relating to the HRA's interest of redevelopment and Mr. Katzmarek's interest to sell. If Mr. Katzmarek has no interest to sell, Tom St. Hilaire made a motion for the HRA to move forward with condemnation and relocation of a blighted property for redevelopment. The property known as the Robert Katzmarek property. At Larson seconded the motion and with no further discussion, the motion passed 4-0. The HRA members agreed not to act on the Olson property along Gast Broadway until completion of the City Comprehensive Plan Update. C) Consideration to review the dewrepancy between the estimated TIF Penalty and the State's Tl Aid reduction - HRA members accepted the written explanation provided by Lenny Kirscht of PRG, lnc. The descrepancy resulted because of the combination of a decrease in the sales ratio and an increase in the estimated tax rate between Page 4 HRA MINUTES OCTOBER 4, 1995 the date the post 1990 TIF Districts were created and the actual reported aid reduction. d) Consideration to amend the City of Monticello TIF Policies for addition of the proposed nineth criteria - AI Larson made a motion amending the TIF Policies for the addition of the ninth criteria: The project shall demonstrate "community involvement" including demonstrated degrees of the various factors: a) Local residency of the company's owners and employees, or b) Local residency of the contractors involved in the project, or c) Membership in local business organizations, or d) Other similiar factots. Roger Carlson seconded the motion and with no further discussion, the motion passed 4-0. 5. CONSIDERATION TO REVIEW HRA BILLS FOR APPROVAL• a) Admowledgement of Letter of Adjustment - Members accepted the adjustment from S1,389.80to $300 relating to the Kennedy & Greven billing for research of the TIF Policy criteria. b) Authorize payment of Vector Tool bills for reimbursement - Al Larson made a motion for payment of the public hearing notice publication of S171.05 and preparation of purchase agreement of 5773.40 relating to the Vector Tool project. Roger Carlson seconded the motion and with no further discussion, the motion passed. Yeas: Al Larson. Roger Carlson, and Tom St. Hilaire. Nays: None. Abstention: Brad Barger (Potential conflict of interest.) All HRA costs associated with the land sale are the responsibility of the buyer and the HRA will be reimbursed by the title company at the time of closing. c) Authorization of other bills - Member authorized payment of the S31.00 Kennedy and Graven bill. 6. OTHER BUSINESS_ Chairperson Larson requested Attomey Bubul inform the HRA members to the general power of an HRA and the general power of an EDA. This a reiteration of the special Council meeting of October 4, 1995, which was requested by the IDC to consider consolidation of the HRA and the EDA and to define the role of the IDC as a possible subcommittee of either organizations. As a subcommittee of a governmental entity, the IDC would be subject to the open meeting law and restrictions would apply to expenditure of IDC funds. The IDC officers felt their Page 3 HRA MINUTES OCTOBER 4, 1995 function was best served as a subcommittee of the Chamber of Commerce for utilization of the Chamber's non-profit tax exempt status. HRA members individually verbal zod their opinion to the strengths and weaknesses to consolidate the HRA and the EDA. They unanimoulsy agreed and recommended that the HRA and EDA not consolidate and that the existing two -commission organizational strucuue continue. HRA members felt the two -commission structure was the best long-term organizational structure for the City of Monticello because the structure offers a Necks and balance system, works well to the benefit of the developers and the city, and the preservation of the HRA preserves the non -tangible HRA assets of historical value, experience, and familiarity of projects. Subject to Attorney Bubul's verification that the HRA can legally administer the GMEF and if the City Council saw the roles of :.a HRA and EDA as a duplication of efforts and elected to consolidate the HRA and EDA, then the HRA recommended that the HRA be preserved and the EDA consolidate into the HRA. Members felt that the HRA was in a better position to address project issues because of the HRA's historical value, experience, and familiarity of projects and the preservation of the HRA would best retain a checks and balance system. After Mr. Bubul verifies the HRA can legally administer the GMEF, Koropchak was requested to draft a letter to Councilmembers stating the HRH's recommendations. Letter to be signed by HRA members in attendance. Also, HRA members requested HRA minutes be submitted to Planning Commission Chairperson Dick Frie. The HRA meeting adjourned at 10:00 p.m. Cn"- 011ie Koropchak. HRA Executive Director Page 6 HRA AGENDA DECEMBER 6.1995 A. Reference and 13ackgmunL- Previously the HRA interviewed Mark Ruff of Publicorp, Inc. Periodically, Publicorp, Inc. has been contacted for HRA services. Those services included financial impacts for potential redevelopment of the Katzmarek area and Olson property. Publicorp appears very knowledgeable in the area of redevelopment, housing, and TIF issues and its relationship to Minnesota Statutory. Additionally, Publicorp appears to have a good working relationship with Attorney Bubul. As Public Resource Group, Inc. has been a key player in the recruitment of new industrial businesses. particularly, in the area of preparing financial packages (uses and sources) and the preparation of SBA, CMIF, and State applications. It also appears PRG, Inc. may not have the expertise relating to current legislative changes of TIF or perhaps the City of Monticello's contact person is not an expert in TIF as some problems have occurred relating to establishment or modification of TIF Districts. If the HRA goals in the immediate future consists of redevelopment or housing projects in addition to industrial recruitment, it proj appears a good time to consider contracting with Publicorp. Inc. The HRA may wish to continue utilizing PRG for financial packaging and loan application preparation. Attorney Bubul may have some comments relating to this agenda item. Enclosed is a copy of the PRG contract. Page 1 ASOURCE PUBLIC GROUP, INC. t Marketing, Development d Finance Specialists AGREEMENT BY AND BETWEEN PUBLIC RESOURCE GROUP, INC. and the CITY OF MONTICELLO, MINNESOTA HOUSING AND REDEVELOPMENT AUTHORITY This Agreement made and entered into on the 4th day of Mev 1994, by and between the Housing and Redevelopment Authority of Monticello, Minnesota, a Minnesota 1 Municipality, (hereinafter refereed to as 'City'), and Public Resource Group, Inc., a Minnesota corporation (hereinafter referred to as 'PRG'). WHEREAS, the City of Monticello believes that communities are dynamic in the sense that they are constantly changing; and WHEREAS, the City of Monticello believes that the economy of its community is shaped by its active economic development program; and WHEREAS, the City ha.-, initiated its economic development program through its Housing and Redevelopment Authority and utilizes Tax Increment Financing as a key component of its economic development program; and WHEREAS, PRO seeks to assist the continued growth of the City of Monticello to provide economic development services and technical, professional assistance for its Tax Increment Financing program. 4205 Lancaster I ane North 0 Suite 1100 • Mintrcnpdis, Minnesuun 55441 • (612) SS47979 ♦ (612) 5549221 fox r NOW, THEREFORE, BASED UPON THE MUTUAL PROMISES AND CONSIDERATIONS CONTAINED HEREIN, THE PARTIES HERETO AGREE AS FOLLOWS: 1. SCOPE OF SERVICES A. PRG will provide ongoing consultation services as requested, to the City of Monticello to assist in the appropriate structure and implementation of the economic development program. B. PRG will provide marketing assistance on behalf of the city to identified prospects on a case-by-case basis. Those services would not be reimbursed. Such marketing assistance will include initial project review and structuring and representation at the company's site visit to the City. t Should the marketing process extend beyond typical requirements, at the City's option, PRC will be reimbursed on a hourly or fixed fee basis for additional hours devoted to the project. C. PRG will assist in maintaining communications between City staff members, Bond Counsel, and project developers utilizing the City's TIF assistance. As such, PRG will mat with all companies committed to the City and maintain follow-up and coordination, as appropriate. D. PRG will prepare Economic Recovery Grant applications on behalf of the City. In addition at the City's discretion, other financial packaging services may be provided by PRG to assist City prospects. 2 E. Tax Increment Services 1. PRG will assist staff in providing preliminary financial review, analysis and recommendations for the structuring of specific TIF development proposals. 2. PRG will assist in the collection of the required technical and financial data, draft TIF plans and coordinate the dissemination of the plans and related material to other public agencies and will review and confirm data with the City's bond counsel and fiscal consultant. 3. PRO will assist in the preparation of materials for public hearings and the presentation of the appropriate information with the City. F. Other duties related to the city's economic development program and TIF programs as directed by the City andlor its designated agency. 1l. PAYMENT FOR SERVICES A. The City agrees to payment for services as described in Section 1, as follows: 1. Marketing Services. Marketing services aro classified as those activities conducted on behalf of the city to assist in location of an industry to the community. These services, at no cost to the City, include the following: a) Preliminary project review; b) Research and identification of potential financing services. 3 C) Initial project structuring; d) Attendance at formal site visit to the City as representative of the Community to discuss financing alternatives; 2. Packaging Services - Other. For financial packaging services, other than Tax Increment Financing, it is the understanding that fees associated with packaging of deist financing applications are the responsibility of the prospective industry with the exception of Economic Recovery Grant Applications (ERG). It is mutually agreed that the fees associated with packaging of ERG will not exceed $4,000 unless authorized by the City. This fee does no include administration/reporting associated with ERG Award. i 3. Spmific Proiect Consultation/Coordination. Upon commitment of a prospective industry to locate to the City, the City agrees to utilize PRG, at its discretion, to assist in overall administrative project consultation and follow-up, and project coordination and completion at the rate of $90 - $I IO/Hour, depending on staff assignment. 4. Establishment of Tax Increment Financina Proieets. At the City's determination, PRG will be utilized to assist in the design and preparation of TIF documents for the community's major projects. Fees for these services are as follows: 4 a. For completion of data preparation, protesting and certification of newly established or amended Tax Increment Financing District - $3.850. b. The City and PRO recognize that the development of tax increment financing projects will be conducted on a contingency basis. City payment for services shall include all variable staff time and expenses associated with each project. C. PRG will coordinate legislative requirements of Tax Increment Financing, including provisions for accounting for LGA and HACA penalties, with the City's Bond Counsel or other designate. 3. Consultation for TIF pro* a. The City will, at its discretion, seek to complete the data and structuring for the community's smaller TIF projects. On this basis, PRG will be retained on an hourly fee of 190.00 - S110/hour depending on staff assignment. to support the process and to complete the appropriate documentation. C. PRO also agrees to provide a monthly accounting of hours expended and fees that have been generated through this contract. It shall be PRO' and the City's intent to provide an overall hourly average rate, consistent with PRO staff fee schedule. 3 v III. ADDITIONAL PROVISIONS A. The City and PRG reserve the right to terminate this Agreement upon 60 days written notice. B. Each party to this Agreement binds himself and his partr►m, successors, executors, administrators,and assigns to the other party of this Agreement and to the partners, successors, executors, administrators, and assigns of such other party, in respect to all covenants of this agreement. Except as above. 5either party shall assign, sublet, or transfer his interest in this agreement without the written consent of the other. Nothing herein But be construed as creating any personal liability on the part of any officer or agent of any public body which may be party hereto, nor shall it be construed as giving any rights or benefits hereunder to anyone other than e the parties to this Agreement. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written. CITY OF MOMMELLO ,`PUBLIC RES E OUP, INC. HOUSING AND RE-DEVELOPIdE-- BY BY— ITS CHAIRPERSON Patrick W. Pelstring, CEO yv P. Kirscht, resident =nardl ITS EXECUTIVE DIRECTOR i 6 HRA AGENDA DECEMBER 6, 1995 011111111111-7=77-iff 1 i.7 .. !111 11.1 'Ibis agenda update relates to the Kaumarek property and properties under consideration by the HRA for future acquisition and possible redevelopment. These properties are currently not located within a TIF District. The modification becomes apparent in order for the HRA to acquire property within the Redevelopment Project No. I boundaries without the establishment of a TIF District. Upon review of the Central Monticello Redevelopment Plan by Attorney Bubul, it became apparent the Plan had no such provision. Additionally, TIF Penalty reimbursements would more clearly be identified within the plan and district budgets. Prior to Attorney B"'s preparation for condemnation of the Katrnnarek property, the modifications must occur. The process for this modification includes a 30May notice of the taxing jurisdictions, therefore, the HRA will adopt the resolution modifying the plans on Wednesday, January 10, 1996 and the City Council will hold a public hearing for adoption a resolution relating to the modifications on Monday. January 22, 1996. Thereafter would the condemnation process begin. This is an additional reason for consideration to contract for Publicorp services. ` Page I HRA AGENDA DECEMBER 6, 1995 .11!:. t' + 1 1 1 1 1 ' 7511.11 :11 11 1 y Ili 1.1Kfilll I a yll 3-1 !p y 1 1F y1:11 1:1 •I tl 11,1 Approximately IW individuals attended the presentation on downtown/riverfrom revitalization by Theresa Washburn on November 16. The following morning, the coalition group met with Theresa and the decision was to move forward. The coalition group met again on November 29 and reviewed the proposal submitted by Thereas and the four recommended areas of services: Organization, economic restructuring, design, and promotion. The majority of commenu heard by the coalition group were positive for forward action and the timing appeared right. The consenous of the group was to contact Thereas for a meeting date in January, to research the potential of an HRA loan for consulting fees, and to research the availability of an intern at SCSU or another individual with appropriate qualifications. All attendees at the November 16 presentation are to receive an update relating to the move forward decision, select an area of service of their desire, and suggest others who maybe willing to serve on the revitalization project. Additionally, it has been brought to the city's attention that Steve Johnson has a buyer for the "J"Corporation warehouse. Although the HRA must act quickly, this maybe an opportune time to purchase the warehouse if the revitalization design plan includes riverfront development. Additionally, it has been suggested that a reasonable offer for the Kjellberg building may be fruitful. Below is a summary of the approximate cost to the HRA for Theresa's November 16 visit to Monticello. Paper for fliers $ 95.74 Consulting Fee E 640.00 Silver Fox (lodging and food) $ 152.21 Dino's $ 163.90 Stella's 127,00 TOTAL $1,079.75 Attorney Rubul will be present at the HRA meeting to advise members of the HRA's ability to provide a loan for future consulting fees. Some questions for consideration: What organization will the loan be made to'? What is the security'' What dollars are available in the TIF Ill% administration fundi How would the intem or other individual's wages/benefrts be funded? Page I i HRA AGENDA DECEMBER 6, 1995 Administrator Wolfsteller will provide a financial update of the TIF Funds and the HRA Funds. Enclosed is a copy of Theresa's recommendations and proposal. I Page 2 Theresa A. Washburn Rt. 1 Box 265 Viroqua, WI 54665 (608)637-7264 November 24, 1995 011ie Koropchak 250 East Broadway Monticello, MN 55362-9245 Dear 011ie, Hello again, I hope that everyone had a nix Thanksgiving and all an: preparing for a joyous Chnstam. I am sending the =ommendatiom as well as a proposal for services for the coming year. The proposal is very rough It docs include unlimited over the phone consulting as well. It is based on the type of services we received our first year as well as the type of services I have completed for other communities. I have learned the hard way that, in the first year a community needs much guidance. If you are interested l will draw up a very detailed agenda for the year. I include accommodations separately with the thought that you may be able to save money by having me in a private home, or wonting out a discount with a local motel. I hope that you will get these by the meeting on November 28. Recommendations Organizathm 1. Detemtine what type of organizational structure you would like and who your painters may be. 1 am not sure if you will need to consolidate at this time, but do take a long hard look at all the economic development organizations in Monticello. Lay out what each of them does and make sure you do not overlap efforts to much. Some overlap will occur naturally. 2. Elect a governing board for the organization or group. It should be between 7 and 11 in number. It should have representatives from all areas of the retail, service, cud public sectors. 3. Create a vision smtement, five year goals, and a detailed one year workplan. This is where you may want my help. To create these three things you will need to plan some son of "retreat" and invite community leaders, business people, and the general population. A visioning statement and goals would be created out of the is day. The workplan would be a narrowing and defining process that would occur in separate committee groups. For more details, call me. 4. Create a larger volunteer base. This would occur at the "retreat" when people decide what area of the redevelopment process they like the best You have a great start with the list of people who came to the first meeting. The organization will need at least 50 volunteers within the four areas that I discussed in my talk. 5. Begin Fundraising Set a goal for a three year period. For example $50,000 a year for three years. You rarely see impressive results in the first year, therefore fundraising for just one year is not wise. 1 would raise funds with the idea that you will be hiring, at least a part-time manager. 5. Call other towns that have revitalization organizations to see how they did it Two names and numbers are: Abraham Algadi of Pine Island (507).3564591 and Robin Roberts of Wauseca (507) 835-3260 Economic Restructoring 1. Take some trips to other towns with similar qualities. Look closely at towns that are bedroom communities. Define what types of businesses are thriving in those areas. Take notes, talk to businesses owners, and report what you see and hear. 2. Collect all, already available data on the town, its customer base and population statistics. Determine where there are gaps in information and what information is outdated. Gather the information as needed. 3. Do an inventory of space availability. This should include all areas of town. Know the square footage's average rents, average building prices. and who the owners are. This will help in determining who can fill what space. 4. Call and work with the local university and extension agents. They may be able to offer general community help and advise to small business owners. Promotion 1. Develop one or two promotions that bring people downtown and to the river. The duck race was the idea 1 had suggested Two towns that have successful duck races are Chippewa Falls, Executive Director Kathy LaPlante (715)7236661 and Sheboygan Falls, Manager Matt Wagner (414)467-6206. 2. Start putting store hours on the windows. 3. Think about doing a joint, long running promotion, such as "Alive After Five" that informs everyone that many local businesses are open when the townspeople get home from work. Design L 1. Work on some simple things first such as, window display and sign consolidation. Encourage stop; owners to look at their buildings from the other side of the street 2. On your visits to other towns look at the building What looks nice, what doesn't Take pictures. Encourage volunteers to take photos and share them with the design committee. 3. Do a riverfromt clean-up day, (if this is legally possible), invite all the volunteers, school lads, community members. 4. Start Wvestigating what is under all the steel, and wooden siding. Look to old picture for some clues. Tear off pieces when building owners are willing S. Call your State Historical Society and find out what kind of services they have to offer. S. Send me the slide of the furniture store so that I can make some recommendations for him Proposal for One Year of Services Theresa Washburn and Associates 1. Visioning workshop (January or February) One day workshop with follow-up report. This workshop would occur for eight hours on a day specified by the organizational group in charge. That day I will guide the townspeople in determining their vision for the downtown and riverfront redevelopment and the specific objectives and the goals for reaching the vision. It will be put in the form of a five year plan. The one year workplan and committees would be created from the five year plan. 5700.00 plus accommodations 2. Workplan workshop (February or March) One day of services which includes four, two hour meetings with each committee to help them create a detailed, and realistic work schedule for the coming year. A document will be produced within two weeks of the visit. $700.00 plus accommodations 3. Visit of your choke ( April May or June) One visit to fill any needs that occur during the first months of being an organization. The visit could be to help hire a manager, work on window displays, meet with a committee and help plan a promotion, or train the new manager. The visit would last 6-8 hours and a small follow-up report would be produced $500.00 plus accommodations 4. Resource Team Visit (August or September) This is a three day visit with two other managers, or "small-town development experts» and myself. The purpose of the visit would be to dissect and address specific problems and hurdles that have occurred over the last few months. The team would be assembled based on the needs detem fined by the board and the committees. The visit would include tours of the town, meetings with committees, individual meetings with townspeople, a public reception and a public meeting. A large document will be produced with specific and detailed recommendations from each of the resource team members. Cost $5,000 plus accommodations S. Year end visit and directional planning. ( November. December or January) A one day visit to help the community plan for the next year on their own. This would be a day with the manager, committees and board. A document and recommendations would be produced. Cost 5700.00 plus accommodations Total Cost for the Year 57,600.00 L" HRA AGENDA DECEMBER 6, 1995 , l 7 . ir• i •n l�f/ � .l � :.�.1. lt. . l n . � •.1 i . 'l0 Uj :Ill. 1 MJ.J.) 1 At the November HRA meeting. HRA members agreed to table this item until after the presentation by 7beresa Washburn on Riverfront/Downtown Revitalization. If the HRA desires to purchase the property, a motion should be made authorizing Attorney Bubul to prepare a Purchase Agreement at an established price. Enclosed are excerpts of the appraisal completed by Field & Associates. Page I Q, C41 .1� '1 � �)f� � loll �f 1 :�.1. f� �. .."�i��1,, • '.-• '.- L� y 1 � ant . r..:.r•1� � i ��.�.� . : �nzyn ,� A. Enclosed independently of the agenda is a excerpt of the appraisal completed by Mr. Eull of R.A. Field & Associates. Mr. Maxwell was contacted; however, no longer does appraisals and Mr. Dragsted would be a conflict of interest as a member of the Planning Commission. Also enclosed to the agenda is information provided to the HRA at the October meeting, a map, and summary of the available HRA and TIF balances. The From Stmt and riverbank frontage each total 330 feet. The westerly side is approximately 132 feet and the easterly side approximately 70 feet. The river front setbaclt is SO feet and the from strut setback is 30 feet, in other words, the thrix easterly lots are not buildable because of setback requirements. The westerly two lots have approximately 52 fat (depth) remaining with a sideset back of 20 fees. The property lies in a flood plain and is buildable one foot above highest water level. The hoose was constructed in 1917 and the total I and 1/4 story house square footage is approximately 1,924 sq R. If the HRA wishes to authorize Mr. Bubul to prepare a purchase agreement. determination of the following is advised: Purchase Price - Earnest Money - Legal Title (Seller/Buyer Evidenu) Taxes/Special Assessments Relocation Costs - -*N Expiration date - C Ih— HRA AGENDA OCTOBER 4.1995 A. Reference and Background: Mr. Rich Carlson, Real Estate Agent, will brief the HRA of his conversations with the willing sellers (owner occupied). This property located along From Street and with Mississippi River frontage was an area previously earmarked for future redevelopment by the HRA. Listed is information from the Tax Book Payable 1995. PID# 155-010-064010 EMV E126,700 LMT $103,700 Special Assessments 1995 $365.88 Remaining Balance of Assessments E1,111.98- 4 years, 77-3 Street Impr. HRA procedure to purchase: I. Appraisal recommended. 2. Purchase Agreement prepared by HRA Attorney. 3. Relocation Costs. Willing sellers are entitled to relocation costs, must agree to waive. 4. Consideration of demolition costs. 5. Revenue for purchase and demolition: Available TIF Surplus Funds. 6. Adopt resolution prior to demolition: Establish three year window which allows the demolished structure to qualify within the test for establishment of a redevelopment district. Attached is a map outlining the lots wider discussion. Page I L.1 t)eecrlpabn UNIFORM RESIDENTIAL APPRAISAL REPORT Fge N,•950CT 17C l',4t<•rly Atld,a" 725 Front Street city Monticello State MN Zb Code 55362 Lc00"rxiplioa Lots 1 .7..3.4.&5 of Bilk 64 & N 40 -of Vac Riv St. Coumly Mriaht A%%esw'slnolcedtb 155-010-064010 arrear 1995 AE laws 31,942.76 SadderAssessm1af41.00 rr •+er Richard&tiarian CajclsoWeatownr.+ same ocavrnu: f x1ower Fl remm F-1 vacvu 4":'ly rights awaised & I ree skrde I - I Leasdnld Roied Type l r uD 1 l cArdamh+,n (I RmAok afI) wAs /lea. NHgf*-rpodo,noieclmvne City of Monticello Mapfirtmevce. off metro cams nett 1002ul Sale nice S n /a Date d Sale n / a DnCliat an and S amara d ban dwpes/areassbre to be pall by Ma n / a Lmvlrs/cheal(HRA) of Monticello Address 250 E Broadway P.O.Box 1147 Monticello MN Apraiser C arence Eull Address 0168 30th St. NE St.Michaej. 4N 5576 Location Clarence Sthoban J final nedomlnenl SW40 lenfdy homing N;"4 tend ues % Lend Fra change 11.14 'v ®Ove. 75% 25-75%lhvder 25% oecwenpy FRICE MOoOt AGE Ono horny 75 Not likety [:] Liken Oravth rate x �+ �' RO'n,-+ 65 Lai �W_ 7-e lmney 03 In peaces nrperly vnhmHRnW ilcrna,kq ] SW*'. �De,Ardrrq Tenant 200 ligh 75 MIII•InmAy 02 To Demand/me%ge x h mfyshnlotmce Ov r sr%fy Urmal ill5t) ... il+emnkard i commecw 1 5moli"tkvg timeLbdm 3mos 3-6 moa Over 6 n arse love 5%) 95 10-30 vacant05 We: Race and the racial cornpeaalon of Bvs neighborhood we nota�rabal tactors. Ndy,bo,hwdba.da,IMa,dcKvcWtlr, Neiqhborhood boundaries areldefined as the city of Monticello and the area alona the Mississippi River. Factrrs Ilial affect the mtukelob&ly at pre moperlies In the neighborhood (pm■imlly to enpbymad and ameMllee, emia d slablmy, appeal to market, ek ): Subject is located in the city of Monticello. An area of mixed uses with sinqle family homes of various styles, sizes, ages and values.Schools and shopping are in Monticello. The view is of similar homes. No adverse noise factor noted. Employment is in Monticello and the Minneapolis Metro area 45 miles southeast via I-94. There are adequate recreational facilities in the area. Market cad'dbro In the sut*nl setditatead fI ckdkq mlopot fa pro nbnve conckmi" mbed to the trend d prme,ty vakes. elle sardrete7yy, ad rnn,ketkg Wm • such as data on compallthe properties for salt in the nelghbmtxmd. desvin ion of IM prevalence of sates and financing concassbm, etc), Market conditiorls are steadv.with increasing orooerty values. Marketina time is generally under 90 days. Financina rates ranee in the 8% to 9% with zero ' 1 discount points. There are no factors noted that will negatively affect marketability of the subiect property. Rolect Infe"ess"on to PIIDa (Vrpyicnbbl • • b the devebpty/buWm in can" of nm Itorre 0lv r s' Assaetdbn n1CA17 U ms U No Apryorlrots Idaf nmdrer d Unite kv pre mAjocl proled Amrmlmte total amber of radts for sale In Re etbkcf tra)eel 0eeoibe carrrvm e o wets and recreatim IaePoDes olreeslan_Irreoularr See Plat mat) TmoQal" slope to river Sae see APorox. 57.760 Bt. a 1.33 ac recon, Lot red ®No She ave for n•hood lenaa�uIeeotevResidential R'1 S?/prefdngeca:abiagnaa Shape irreoular • LJ� U-� adrappearadeauate ep°amki(Gudave'Me'e) 1--) other we fembin) lkdcst A bad use esLnee vow of s i m i l a r b ome s tami6s Rorie Other 011•anebrpevanwits Trpd nAlk Alvale taMscnrf,9 trees,sod,shrubs Electricity t Street blacktop _ Orkevray Su fa.v conrete Gas < Cwb/gdte concrete -_ At,,, "ena,� c I, none notr�e�d Wdn ( SIllel r none I__FEMAkftPW. FEMA Sandal Food Ituard Area UJ Y. ©tea snMtnry am en [ Street Lyda post _ FEMA ?one R v pDale nA1Q4/AA Slam sews K Alley 1100e 270534 OOIAR C -ft (nAmmrd od-so ensements envoacfrmento, eneeinl ns=-vnnM%, elde prem, eICq;A a land norrcanlq,MrrO iadrq use, etc 1:110 A dy e r F easements, encroachments or other adverse conditions were noted by at)oraiser. (TENEITAL DE SCRp'ttON E%lEfpOR OESCRaviKW BASEMENT INSlLA1pN No of lkdts one ramrcaia,poured crt&bIrOLINVAINON Slab none Amn:n Ft. 1876FwdNn CA Stone% two ro-in, vhh wood SdQamStvrce none %FWshw none re•engTyp WJM/AltI det nnol%"rare asphaltILT"M ad 127% Ceikq _nTa__ waft nmiw(riye.) 2 totory O rltrmAnrnsi,ts metal Iarmnmp none Waae n a ria. ,- Er4'•I/nmosed yes/no WW-Tym hinged&dlb Ienml.ess none rkw n a N" _ A{C vl 1917-T - Stam/som%n comb ISet rirs-d none Oddde Enhynone ILhda- ElMctivoMtolyrol -JS- Maradxtaed l rouse no Ibwsimon none "L10M9 Foyer LM,q Drdrq Naehen leer, rw illy rim no., tkn arooanre • Baths Lotaxtry dim Alen Sar I I Brier,, al 7Q 7 6 Level 1 1 1 1 2 -1.5 1470 Lera12 -- 2 470 I radilv)d Nea above {pale s:urfvko. 7 names; 4 Dnd,00ms), I -� Both(a). 19, 8 8auao Fam al Glen UAv Arca INWRIOn ALUmlal%/Caafillon IIFATINO 'KITCNENF.OUP.. ATTIC AMENITIES CAnSTORAGE: rkvtre carpet&wood Typo 11N nalkRrator M" ,-Wacja)s_ Nee Wre% Plastor&drrwirtint N0 rnangr•/(Dven Shia ndin Oarrtpo fof care m./rkrkh oak stained CardUon avq nkspaaal Dan sial, - Der:k Alwchd nafh rinor ceramic COOL l0 1700'Nasher `x (ladtb n rb,ch 2enc lose nolmhod nath Hhkrocd ceramic C,vrhal none rmnkfnd rion, - Ferree Rda•kv 11" ext. wood one% none Mira - hated Ikxe Camel int. wood p canton Wisherrbye, Finished olvew•aradequate AA41 vhrotwes(strnL•demgyentcteoa ms,eveI F.1Retric sgrviCe is ;OO_00_220 volts. Subject ha, - _two enclosed oorchn.Intertor ban tho or_WnAJ oar tri"nd tiniab. Co"lbn of the h e ove„mds, drIvecblbn fdrydcal. hi etbnnl, ad n.w,Nd). ropalra nnertnd, pv*fy al r:oralrlAkn, rnrrmdnerq/edddbres, etc - $Obi or t is in good condition. No functional or external obnoinscence gated. Floor D1An appears functional and marketable. Subioct lien within tho neighborhood ranaon of value and aag. Thnre in n 2 x4aggMrr to aArMn slnb on the subject Rite. A*"" ewMm "wvdal eanNliwe (arch res, hA not envlted to, hnfalrbw slash 5, Imk; of evicee, do I pmrvil in lint 5 its" Is 9. an Ire Who. n In Its I%.hAal•t �sory�dr�l1l1�Ieem omty No environmental hazardous conditions nlgtD on the Bite or vicinity. Thlrs in a summary reporE`Sf-iritinfted-appiois`al. -A-.chore 603 46F37 fin,a�w'ewwe - •n llre.. 17rMt11 IA%m favvie w.,e,.»•. ... Votusllon Secffon UNW-UHM RLSWOMAL Ittl•unf f-Iw9.. y e..luc 65, 000 Comnunto on cost AMrostn (cacti as. source of coot "Smote, res 1 esT .Tm AE.ACD1,Cl.01I coo,w Iffr r1.0—wo Vakm. @guars foot ulo.Aaao,f and for HUD. VA and imHiA cls 0`w91,.948 a. ^ as -65...38- -4--127,360 estimto nemeWng 00WOmk Me of the p,oMI&_ haaelnj",816 enR as -10,00-- T..—_18,760 DatA_l1�iiLr.Of3C_appZ4H�. o_pCR�t3 10 500 _ __ Sro^^ 4040 so n so _2.00_ 2,080 -S1CR11 s -include &ive4AY T.bl a.a.... C.« k%" @ _ 158,700 -- f.. mrv0W n..ar C. . Pthyslcal deVreQi4t14a_e5tiMted at 40t _ oe•1e0rar' 63,484 1 .s 63,480 owooew's.r«..eo.re..lr •@95,220 _FUn.tiCg)al-QbBOle9QMm_e3tiM&tgd_at_Ot_— •A.W Vot. « aft @eP•sM.+••. ' @ _-.1.400 b_ IMOICATEO VALUE BY COST APPROACN • s 3UaN brternad obsolesooEm estimted at 01 SUBJECT CCI.►AAM.e NO I _ _ CQVAAML NO 7 comva all' No I 225 Front Street 1220 Rives Street N 3 R1vem3de Circle 8044 MF. 102nd St .M@.r Mkir Mont ice] )0. _Monticello MMIticel10 • ��///////////%/ 4 WEST . wEST r 1 PA foe. w Am _ s A e 91.55 A �. ./ //, f 114.20 t' M -MM /a- - 117.95 A_Mart pars irapctn MIS Sold Data KLS Sold Data MLS Sold Data V..rsa. a— -- _ personal inspection petsoml inspection perpDrAl_ins ection VAWI A11MMI .Ta DMAV'nON DEeCAPTCH I 11 a A,&—_ MeC1UInON I 1f s A4�� OfWWMN a.r.r rawss j VA - COnveritional Ornventional �-`�•- Q�iirt8 O..points. O�o10ts - ---- ar«errrIme 04/22/4410_-+7,800 03/25/93(cl)-_+16,510- 05126/y5_(Cl)- +4,570 7 , LMP,.. _ MississippL Qtter_Creek . +13,000 Mississippi _ _ Mississippi --sen r s... _Fee-._ -- Fee ­ - - Fee Fes_-_. a. _lac/330'rivr lac/851cre KJ +17,500 lac/150'rivr- +9,000 lac/105'rivr_ +11,250_ _civerfrmt- good - urban riverfro t _ riyerfrzt f DIMW W Aoow--- tWQ_9tory__ split - - _ split _ rambler - . . oesete, cloon - -good-- w - - -- - .good — _good -:25,000_ _- _(1917)_35_ (1979)_ 15 10,000 (1979) 15._. -10,000_ _(19801- 15 .--10,444_ J'- opood - - g -d - - •___ _ - good ._ -_ - - - -_ good— _ M... OMI T..W ablM_sohTAr dOrN bh i0b1 asnb Mh T.bl go- 80.A-CNee _7 4 1.5 6_. 3--2.5-_ 5J. 1-L.5_ +2,000 P.ru AAw. _ _1,948een _1,42 _" k +10,560_ e.r.Area lbrbe full+ half +5,000 Rill +1,000 full +1,000 R.rr now or.s -nate _— two _ -- - _ - -X8,404_ _three + bath -16,900_ two Arran r 111F. a\%r5 a avfrage - - -- - -- - ayermp-- -wceeov _Hw/NG/rccA_ >•8/19G/_CA - _--2.000 f/EL/noun +594-JR/0T/noCA -- a... noted _- rare. _rated . node. 110ted . _ . hale noted o.,.rc..Pes .slab only two -attached_ -4,000 2_a<t/l-tuck _ -5,OQO..three detach -6,400_ Pre. P.F, oes. two pordhm porch +1,000 deck 6 porde deck 6 patio '-000e,* -. ------ -- - . FF/security _ -3, 000_.ATISM¢ity- ..�.� A.o, P « ... _ _ -- --- swinklers r r�r jjanpes_ ���1 -1,00--- 0 1,00---0 -1,00 . _._.-900 29,060 1 3,4 0,52Ad t.s4_ AyFlos.r.ft- j�//! 692_ 169,060�15969- osl.l..r o• a.r. aewsrrrl A.aso h .AFs r.wN. esMM b h .«/a.eeM, .t I A +44timB_adjk1817 E!nt . i8—Used.-2tw °T -direction -of adjuetmmte_is_mixod;. subject is bracketed. Qxp one ie_proxirmte, _but -least similar. omp two. i0 most prmdrmte and -least adjusted. Coop. throe is fffwt_reCent. Moat- ---weight—(40% each) is placed -on -Coope two and throe; -less weight (20-1) is placed on_ump ore. ._The value indicated -(S162,992) is well -supported by all three coWa. Subject_ -is-typical in }� _oa WUr.Li %olitY--LQr-9 der hones. Marketabi ity is estimated -to be goad. _-- �. TO Ml6atT COe M 1 Dp,fA.Al11 f NO @ COreAAAMl ND @ Dele. Pt. w Do- -n/a - - n/& -?! %a -n/8 - - - n/8 - -- --- - - O. b pFr rY. M.yr• r .nf ere.e .P......+ N rb. rq s •I•O oft sAFr Pef eq .r -Voo Ne, Ib .«N « - to w .eip.,«r. INDICATED VALUE BY BALES COMPARISON APPROACH I INDICATED VALUE BY DICOME APPROACH p Anobwal s.se..e brr. Ar. s /a AAI, . oar owe Woft . n to -S ]I/a na o,~ • ..s. Lri) W W I Ml.r . N ....I.. N.i.w hoed.. r m.ss. sr. w I__ I .MFA . e...F.... @r M. .. mA.s.e e..s...a.a..w-9ubject to FIFMM Addeniko_attaced. Ito final Value io.rcundod up to the rh0arect .1 51,.000_fran th0_dks�ct_eaies mfpnris0rl_a�adn. _-- .' ab.A.s.Mthe im m_apyroakfi is not used duo to lack of sufficient data -with whidl to_fmTn_a- MeaningN1 valuo_wtimate. 71ne direct sales omparioah apprauif le_believod to offer the moat reliable indication of valfr_.mld_most weight is on it. Nell-auan'ted by the coot aiVromoh, TN. P"- N PF .Wow F ..«f... Pe .nee. " « N .,N Pa.% to . h rMr e' to car. ewe w P..e.4 .!.deft We to ow"WilM -09P MI V40V Irl, Ma .~ . W oe"Ae .W M car/ f Pr rbd..@ A.a.I U. Pei. 4U V-* Was Trr IDDM (INAM M f I(WS)ESTIMATE TME MARKET VALUE.AEDEFMD. Of TWE REAL PROPERTY THAT IE THE SUBJECT Of TMB REPORT. AS Or _Junin. -1, 1991 'MCNIETWB DATEOP IM►ECTNWI AND THEEPPECTTVE DATEO►THMAEPC"TOGES 163,000_ i0RA1BER: �/1/% �- �. SUPERVISORYAPPRAISER (ONLY RNEOUMED(: _ (fte r— �f�4s.e✓ /"� _ ._— FV•MS ' — —. Ll to tw w w_-Clerwm R. MI l.. Nrr- - .Moo ft"" F eget" October 26, _1495._. _- o.F w w.•- - - - 0440~ f 4000525 eFF �%l f,O MF to— f p111 P M.Ier�. ep %M Mr /see A en h 14M MAMMe MIM. sof PADA s Of o DEFINITION OF MARKET VALUE: The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowl- edgeably and assuming the price is nbt affected by undue stimulus. Implicit in this definition is the consummation of a sale as of n specified date and the passing of title fmm seller to buyer under conditions whereby: (1) buyer and seller are typically rmnivalcd. (2) both panics are well informed or well advised, arid each acting in what he considers his own best interest: (3) a reasonable time is allowed for exp tore in the open market: (4) payment is made in terms of cash in U. S. dollars or in terms of financial arrangements comparable thereto: and (S) the price represents the normal consideration for the property sold unaffected by special or creative financing or sales con- cessions* granted by anyone associated with the sale. P. *Adjustments w the comparahics must he made for special or creative financing or sales concessions. No adjust- ments are necessary for those costs which are normally paid by sellers as a result of tradition or law in a market arca: these costs arc readily identifiable since the seller pays these costs In virtually all sales transactions. Special or creative financing adjustments can be made to the comparable property by comparisons to financing terms offered by a third party institutional lender that is not already involved in the property or transaction. Any adjustment should not be calculated on a mechanical dollar for dollar cast of the financing or concession but the dollar ammint of any adjustment should approximate the market's reaction to the financing or concessions based on the appraiscr'sjudgment. STATEMENT OF LIMITING CONDITIONS AND APPRAISER'S CERTIFICATION CONTINGENT AND LIMITING CONDITIONS: The appraiser's certification that appears in the appraisal report is subject to the following conditions: 1. The appraiser will not he responsible for matters of a legal nature that affect either the property being appraised or the title to it. Tlc appraiser assumes that the title Is goMnl and marketable and, therefore, will not render any opinions alition the title. The property is appraised tat the basis of it being under responsible ownership. 2. The appraiser has provided a sketch in the appraisal report to show approximate dimensions of the improve- ments and the sketch is included only if) assist the reader of the repro in visualizing the properly and understand- ing the oppraiser's determination of its size. 3. The appraiser will not give testimony or appear in court hecnusc he or she made an appraisal of the property in question, unless specific arrangements to do so have been made beforehand. 4. The appraiser has distributed the value of the property between the land and the improvements in the cost approach to value on the basis of the existing use of the property. These separate valuations must not be used in conjunction with any other appraisal and are invalid if they are so used. S. The appraiser has noted in the appraisal report any adverse condition (such as, but not limited to, hazardous wastes, toxic substances, etc.) observed during the inspection of the subject property or that he or she became aware of during the normnl research involved in performing the appraisal. Unless otherwise stated in the appraisal report, the appraiser has no knowledge of any hidden or uuapparent conditions of the property or adverse environ- mental conditions (including the presence of hnrartlws wastes, toxic suhstances, etc.) that would make the prop- erty more or less valuable, and has assumed that there are no such conditions and makes no guarantees or war- ranties, express or implied, regarding the condilion of the property. The appraiser will not be responsible for any such conditions that oho exist or for any engineering or testing that might he required to discover whether such conditinns exist. flecause the appraiser is non an expert in the Geld of environmental hazards. The appraisal report must not he considered as an environmental assessment of the property. 6. '11te appraiser ohtatincd the infomiasion, cmintaics, and opinions that were expressed in the appraisal report room sources that be or she considers In be relinble and believes Them to be true and correct. The appraiser dotes �, .xu assume reslMmsihility Gr the accuracy of such hens that were I'urnisheJ by orhe► parries. 7. The appraiser will not disclose the contents of the appraisal repot except as provided for in the Uniform Standards of Professional Appraisal Practice. H. The appraiset has hawd his in her apprui."l report utul valualhrt conclusion for an appraisal that Is subject to satisfactory emmpletiotn, repairs, or alterations on the assumption that cranpleti n of the Improvements will be p:rformrd in n workniainlike manner. .. ,I 9. The appraiser must provide his or her prior written consent before all (or any part) of the content of the appraisal report (lite holing conclusions abort the property valise, the appraiser's Identity and professional designa. thins, and references ht any professional appraisal organirutions or the firm with which the appraiser is asuici- ated) can he used for tiny purpi sets by anyone except: the client specified In the report: the harrower if he or she paid do appraisal fee: die nntngagec or its succesurs and nssigM: the mortgage Insurer: consultants: professional urgmtiralions; any state dr federally approved financial institution; or any department, agency, or instru. �Ipprai%nl tentalhy of due United States orany state titthe Dislrict of Colunthin. The appraiser's written consent aril pprovnl must also he ohlained before The appraisal for any pan of it) can he conveyed by anyone to the public Thnnugh advertising, public rclathnn, news, sales, or tuher niedia. Freddie Mac Form 439 Page I of 3 Fannie Mae Form I11f14B i v, FIRPEA AUUEHUUM AIIU 1.111UEIMItITltlll SUPPLEMENT OBIIERAL O 1 This appraisal conlormo to the Uniform Standards of Professional Appraisal Practice ("US PAP') adopted by the AppraIna I Standards Board of thio AppraIna I Foundation, except that the Departure Provision does not apply. O I The compennntlon for thin apprnleel In not routingent upon the reportluy of apredeterm Ltnd Wallin or Jirectlon In vnlua Clint [swore Che cause v[ rite Car the nmount o[ Lit vnlue an lints, Clue attainment o[ a etipuleted tesult, or the occurrence of a aubenqueut oveut. 0 7 Thin npprnlnnl annlgmmnut wnn not tinned on a rnquested minimum voluetiou, n npnclrle valuation, or Lhn approval of n lono. O 4 The purponn of thin npprnlnnl In to ontimntn Lien mnrknt value of subject property for federally-rolated mortgaya loan purposes. O S The effective date of this appraisal slid Lite date It was prepared ere Lite onnwi. O 6 Titocertiffentiou of the apprelner appearing In tits appraisal report In subject to, the following conditions and to each other specific and limiting conditions no are set forth by the eppraleer In the report. O 7 The apPpraloor annumen no renpounlbillty for mmttern or a legal naturn n[fectling tho propntty nppralned or thn title thoreLo, nor dons Lltn npprnlner tender city opinion no to the CILln, which In nnnumed Co tin yyeoI null mnrkntable. Tho property is epprsiced nn though under reopoualble ownership. O B Any sketch in the report shows approximate dimensions and Is Lhcluded to assist the reader let visualising the property. The appraiser Ilse made no survey of thepptoperty. O 9 The appraiser is not required to ylvn testimony or appear In court because of having made the appraisal With reference to Che property In queetlou, unless arrangements have been previously made therefor. 010 Any distribution of the valuation In the report between lend nud Improvements appplias only under the oxloting program o[ utillzetion. Tit,* separate veluetlone for lead slid building muni not be used is conjunetlou with any other appraisal end are lnvnlld If so used. Oil Tho appraiser ensumee that there tiro no hidden or unnppnreul conditions or the property, aubnoll, or structures, which would render it more or loon velunble. The appraiser nnsumee no reopouslblllty for each coudltione, or for englhhnering which might be required to dincover such facl.ors. O12 Informntlon, entimaton, mud oplulou futuinhod to Lit" nppralser, need amttnlued In the report, worn obtained from nources conniderod rellnble ntud believed to be true send correct. Ilowever, no responsibility for accuracy of such Items furnlehed to the appraiser cell be aeeumed by the appraiser. Oil Disclosure of the contents of the appraisal report In governed by the Uniform Standards of Professional Practice and the Lowe of the State of Illnnsaota. 011 Delther all nor eny pert of the content of the report, or copy thereof (including conclue one as to tits property value, the identityy of the eppreleer, profeealonel denignat, one. reference to eny profeeeionnl Zpro not orgnnlxatlous, or the firm with which tits eppreleer to connected) all be lined for any purpnne by anyone but the clleut npoclfled to the report, the borrower It epptaleel fee ppaid by name, the martgagoo or its euccaseors end aeelgna, mortgnggo litnurere, pro[nselonal eppprotest orgmutrntlosn, any state or [odor. IV approved [lnnnolnl lnotltutlon, any department, agency, or instrumentality of the United States or enp state or the District of Columbia, without the previous written colheent nud approval of the appraiser. PROPERTY P 1 Subject to HOT underroponed condemnation by any authority. approveed are EE 8111PI.E. P I Subject property line tie no boon cold during tits poet twelve months. P 4 A rentionnble marketing time or nubinot property Is eeUmatad to be 1-6 mon. P 9 tin pm ro,unl ptnpnrky, flxturen, hnn-nCnndlug npplinucoe, furulturo or lutea Ib tomo ere Included lit title npprnleel. P-6 The tie -In •completed• value of subject property to the same as Lite spprs ee value. q6 tOBBORIlOOU 11 1 Ilerkoting time In SOT over nix months. if 2 Ileighbothood vacancy rate Is too? unusually high. 11 2 Pro atty values era "Or declining. 11 1 Dub not property lies within the nelghbothood range of value. It 4 Sub eel properly line Within the nelylhbotluuod rsttgn of age. 11 6 Thn epptnIanr le uunware of any probablo laud -use ahnuyytie. 11 I Tito appraiser Is unaware of any negative [actors al [eating marketability. � BtTE r. B 1 Subject property hes competitive utilities, amenitloe end Improvements. 8 2 Lot shape, to res and elevation are typical in ilia market eros. a 1 Ito RPECIAL f1.0 lo I condltlone exist. 0 6 tin edvetnn enenmants, encroachments or other ndveeee cosdlllone vete skated. 0 5 Subject Is nu? on a private or community -owned street. BUILDING SKETCH GROSS LIVING AREA = GARAGE (S) = MiliE [,] .BASEMENT (/)! %) = /876 [,f PORCH(ES) = 399 - 99CRAWL CRAWL SPACE(OO p) = /d0/v6 [d DECK(S) = /Vo/vl (? SLAB ( 00 %) = /V0/vE (d PATIOS) _ •/NG/+►E [� A1f•i i0 Oft BOOR Lffm S' 1 //70a fiWiSAed 33''chvisped ARCA r!!'. j � I 1 1 ,wJ's �M dpol1� i Ram noon Lara a6XS3=/3)7� � Tor&4= IV 70 70' s` Pas Omine* t A Savor /00 f a9aS3�/1�a 9'.414-3 A/d 7x��= /8.1 f!' )►' 7A L w-&—ow.w r oconamwm ow HRA AGENDA �a DECEMBER 6.1995 1)1. 1N(: 1 I)1 1 l: 1 1 111 1 1.1 ll..l 1 1 1 �llt'1I,1 11 .:1\. »I 1 !.1 l 0 V717a5 MW:111 W.1 " .71 'Jl1 11 yl I.Y\. itl l :111 y5 A. Reference and Backgmund: SUBORDINATION AGREEMENT Previously. the HRA members approved the execution of the Subordination Agreement between the HRA and the lender. Since the approval, Firstar Bank requested two changes to the agreement. First, the HRA terminalis its right of ravisien relating to default of the mortgage; however, the mortgagee agrees to use reasonable efforts to provide the HRA with a copy of the notice of default. Secondly, the HRA terminates its first tight of refusal relating to foreclosure; however, the mortgagee will consult with the HRA and make good faith efforts to cooperate with the HRA in locating and selling the property to a third party. The IIRA Chairperson and Executive Director held fine relating to the second request. However, in order to avoid termination of the project and upon the advise vb of the HRA Attorney, the Chair and Director agreed to the second request. LICENSE AGREEMENT The HRA Chairperson and Executive Director executed a License Agreement on November 9, 1995, between the HRA and Vector Tool which allowed Vector Tool to begin construction prior to land conveyance and the closing. The closing was held November 21, 1995. Recommendation: A motion ratifying the execution of the Subordination Agreement of November 21, 1995, between the HRA and Firstar Bank and the execution of the License Agreement of November 9, 1995, between the HRA and Vector Tool and Manufacturing. Inc. 7 V Page I HRA AGENDA DECEMBER 6, 1995 Consideration to authorize payment of the TIF Fay -as you-eo reimbursements for Martie's Farm Service and Custom Canopy. Inc. A. Reference and Background: MARTIE'S FARM SERVICE Annual reimbursement due to Russ and Sharon Martie as of December 15, 1995, is $2,500 upon annual receipt of $2.735.74 from the county. Recommendation is to authorize annual reimbursement based on receipt of second - half of tax increment. CUSTOM CANOPY, INC. Annual reimbursement due to Stephen and Joan Birkeland, Jr. as of December 31, 1995, is neither $7,426.59 or $8,426.59 upon the City receiving $2,426.59 for HACA Penally less $1,065.96of the available tax increment ($12,618.86.) \4k.Enclosed is a copy of the temporary Occupancy Permit issued by the Building Official in August 31, 1993. Also, enclosed is a copy of the HRA minutes of December 7. 1994, relating to the meeting with Steve Birkeland, Jr. and the motion by the HRA members. At this point, the Building Official indicates the company has not called for a final inspections relating to the HRA motion. The final Occupancy Permit has not been issued, therefore, the Certificate of Completion has not been issued. This does not necessarily mean the improvements are not complete or were not completed by July 30, 1995, I'm attempting to contact Mr. Birkeland, Jr. to schedule a final inspection. If the final inspection verifies compliance of the December 7 motion, a final occupancy permit should be issued. If so, the HRA should approve the Certificate of Completion and consider the level of TIF reimbursement. According to the Private Redevelopment Contract, the minimum improvements are deemed completed upon the issuance of an Occupancy Permit by the City. Per the contract, completion of the the ,minimum improvements were scheduled for December 31, 1993. Page I HRA AGENDA DECEMBER 6, 1995 Now and according to the Building Official and the Assistant Administrator, the company is in violation of the outdoor storage or screening ordinance. It appears vehicles (cars and trucks) are parted outside the screen -fenced area. 1117 14L Page 2 TEMPORARY (�eriifirabs of (Oritjuturg MONTICELLO J 01,11 irfiuruf cif 31101billp 3111111rrfifill This Cti- i firate issaed pursuant to the regni►•ements o/ Section 306 of the Uniform Building Code urtifriuug that at the time o/ issuance ibis struuturt was in compliance with the variou ordimmen of tlu City regulating building construction or use. For tlm following: UsectmlRcdiar Manufacturing BuildinR O1,a,ppmgN0 93-2033 Group B-2 _'1'fptConclructionV-Non Rated ph, Zoo 3 UwZane T-2 6013Highway 025 Clraerofu"W"8 Stephen and Joan Qirkalsnd Addmm Buffalo, MN. 55343 UulldinBAJJrcr 219 Dundee Road Locelltr Monticello. W. 55362 Ue Carr Anderson I. in Officla Udo: August 31 , 1993 NMI ar A CCPW.CY @ NAcff d.... 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