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HRA Agenda 03-02-1994AGENDA MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY Wednesday, March 2, 1994 - 7:00 p.m. City Hall MEMBERS: Chairperson Al Larson, Vice -Chairperson Ben Smith, Everette Ellison, Tom St. Hilaire, and Brad Barger. STAFF: Rick Wolfsteller, Jeff O'Neill, and 011ie Koropchak. 1. CALL TO ORDER. 2. CONSIDERATION TO APPROVE THE FEBRUARY 2, 1994 HRA MINUTES. 3. CONSIDERATION TO ADOPT A RESOLUTION MODIFYING THE REDEVELOPMENT PLAN FOR REDEVELOPMENT PROJECT NO. 1, MODIFYING THE TIB PLANS FOR TIF DISTRICT NOS. 1-1 THROUGH 1-15, AND THE ADOPTION OF THE TIF PLAN FOR TIF DISTRICT NO. 1-16. 4. PUBLIC HEARING ON THE ACQUISITION AND DISPOSITION OF RAW LANDS DESCRIBED AS LOT 3, BLOCK 3, OIP, AND THE ADOPTION OF THE RESOLUTION RELATING THERETO. 5. CONSIDERATION TO REVIEW AND ACCEPT THE PRIVATE REDEVELOPMENT CONTRACT BETWEEN THE HRA AND THE SCHULZ PROPERTIES. 6. CONSIDERATION TO APPROVE THE MINIMUM IMPROVEMENTS CERTIFICATE OF COMPLETION AS RELATES TO THE PRIVATE REDEVELOPMENT CONTRACT BETWEEN THE HRA AND THE BIRKELANDS. 7. CONSIDERATION TO AUTHORIZE EXECUTION OF THE SIGN LOCATION LEASE AGREEMENT BETWEEN THE HRA AND WHITECO. B. CONSIDERATION OF HRA UPDATES: a) Public Resource Group, Inc. (BDS) Billing Accountability. b) HRA Purchase Agreement to Ron and Dee Johnson. C) Congregate and Asslated-Living IIenior Houaing Proposals. d) Next meeting, April 6, 1994. 9. OTHER BUSINESS. 10. ADJOURNMENT. MINUTES MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY Wednesday, February 2, 1994 - 7:00 p.m. City Hall MEMBERS PRESENT: Chairperson Al Larson, Vice -Chairperson Ben Smith (tardy), Everette Ellison, and Brad Barger. MEMBERS ABSENT: Tom St. Hilaire. STAFF PRESENT: 011ie Koropchak. STAFF ABSENT: Rick Wolfsteller and Jeff O'Neill. GUEST PRESENT: Todd Schulz, President, and Roy Schulz, General Manager, Polycast Mfg. 1. CALL TO ORDER. Chairperson Larson called the HRA meeting to order at 7:00 p.m. 2. CONSIDERATION TO APPROVE THE DECEMBER 1, 1993 HRA MINUTES. Chairperson Larson made a motion to approve the December 1, 1993 HRA minutes. Seconded by Everette Ellison and with no corrections or additions, the minutes were approved as written. 3. CONSIDERATION TO ELECT HRA OFFICERS: CHAIRPERSON AND VICE - CHAIRPERSON. Brad Barger nominated and made a motion to elect Al Larson as HRA Chairperson. Seconded by Everette Ellison and with no other nominations or further discussion, the motion passed unanimously. Al Larson nominated and made a motion to elect Ben Smith as HRA Vice -Chairperson. Seconded by Everette Ellison and with no other nominations or further discussion, the motion passed unanimously. 4. C0NSIDEFAT901(,TO ADOPT A�t�SOIhUTjQN AUTHORIZING SDS, ILX., 10 PEQIN PREPARATION OF TIP DISTRICT NO, 1-16 FOR POLYCAST MFG, INC. Todd and Roy Schulz informed and responded to Questions of HRA members. Currently, Polycast is running two BO -hour week shifts. The company manufactures safety producto as used on bobcats and medical products. Pattern design is farmed out with tooling completed by Polycast. The company utilizes Page 1 HRA MINUTES FEBRUARY 2, 1994 rigid plastic which cannot be reused, therefore, solid waste must to hauled to landfills. The company's gross sales of over 1.3 million dollars surpassed their projections. The year-end financial statements indicated an accounts receivable reduction from 1992 to 1993. Roy Schulz responded that for tax purposes the year-end statements indicate deferred billings. The company plans to hire more skilled workers with the expansion, their customer base is mostly out-of-state, and their marketing is predominantly by word-of-mouth of engineers. The 16,640 sq ft office/ production/storage, all -steel support Lester building has an estimated construction cost of $23.60 per sq ft. The metal facility will have exterior trim on three -walls and has no outside storage except for parking of vehicles. The HRA viewed the preliminary building drawings. With receipt of the $5,000 company check, copy of the purchase agreement for Lot 3, Block 3, OIP, the executed Letter of Intent, and the project having previously been determined in compliance with the Monticello TIF policies; Chairperson Larson called for a motion. Brad Barger made a motion to adopt the resolution authorizing BDS, Inc. to prepare the TIF Plan for TIP District No. 1-16, calling for a public hearing on the acquisition and disposition of raw lands, and requesting City Council call for a public hearing for the adoption of the TIF Plan. Ben Smith seconded the motion and with no further discussion, the motion passed unanimously. The HRA members congratulated and welcomed Polycast Mfg, Inc. to Monticello. CONSIDERATION TO REVIEW FOR QISCUSSION T'LIE LIRA/JOHNSON CORRESPONDENCE REGARDING THE POTENTIAL SWAP OF LOT 5 AND LOT 6. BLOCK 3, OIP. For the purpose of encouraging business retention and expansion, the HRA members recommended, first, an agreement be drafted and executed between the HRA and Jay Morrell. The agreement to affirm Mr. Morrell'o intent to purchaoe Lot 6, Block 3, OIP from the HRA at no expense to the HRA. Secondly, upon execution of the first agreement, a purchase agreement be prepared and submitted from the HRA to Ron and Dee Johnson. Said purchase agreement to set conditions protecting the HRA against environmental 1ssueo and the necessity for a completed survey. Page 2 HRA MINUTES FEBRUARY 2, 1994 6. CONSIDERATION TO REVIEW THE BDS, INC. BILLINGS AND THE CONTRACT BETWEEN THE HRA AND BDS. INC. Koropchak informed HRA members that the 2.5 hours for preparation and attendance at the September HRA has not received acceptance by BDS nor the HRA's account received credit. Additionally, Koropchak indicated the January 11 billing of $37.50 is for document closing for Standard Iron and the H -Window which are both not -to -exceed contracts. The HRA recommended not paying the January 11 statement, requested Mr. Pelstring attend the March HRA meeting, and Koropchak prepare a detailed report of concerned issues. 7. OTHER BUSINESS. a) Custom Canopy - The meeting scheduled for January to assess the completion of minimum improvements at Custom Canopy was rescheduled for February 14. This to meet the schedule of all parties involved. b) HRA March 2, 1994 meeting - Koropchak reported that Barb Schwientek is screening potential congregate and assisted -living developers. Selected developers will give presentations at the HRA March meeting. HRA members requested a special meeting be called to hear the presentations, perhaps March 9. Mr. Ellison indicated he would be out-of-town through the end of March. c) TIF -Legislative Issue - Koropchak asked NRA members of their wishes to endorse or not endorse the continued use of Tax Increment Financing. Upon Mr. Barger's input that TIF is an important financial tool and may even be "crucial" at times because front -up TIF can serve as equity in financing the expansion, the HRA elected to endorse the continued use of TIF for industries. 6. ADJOURNMENT. The HRA meeting adjourned at 8:35 p.m. 011ie Koropchak, HRA Executive Director Page HRA AGENDA MARCH 2, 1994 3. Consideration to adopt a resolution modifving the Redevelopment Plan for Redevelopment Project No. 1. modifvinq the TIF Plan for TIF District Nos. 1-1 through 1-15, and the adoption of the TIF Plan for TIF District No. 1-16. A. Reference and Backaround: Enclosed is a copy of the TIF Plan for TIF District No. 1-16. The district being created for Polycast is an eleven -year Economic District. The 16,640 sq ft manufacturing/office facility located on Lot 3, Block 3, OIP has a minimum estimated market value of $400,000 and will generate an average annual tax increment of $18,024. The TIF Budget Includes land acquisition of $55,000, administration and professional services of $7,500 each, capitalized interest of $8,365, and discount of $1,635 for a total of $80,000. A copy of the TIF Plan for TIF District No. 1-16 was distributed to the county, school, and hospital districts on February 11 to meet the Statutory 30 -day requirement for comments. The City Council called for the public hearing of March 14, 1994. The first draft of the Private Redevelopment Contract has been prepared, local bank and SBA financing is being secured, and building and site plans have been reviewed by OSM and City Staff twice. The HRA is requested to consider the adoption of the enclosed resolution. B. Alternative Actions: 1. A motion to adopt the resolution modifying the Redevelopment Plan for Redevelopment Project No. 1, modifying the TIF Plans for TIF District Nos. 1-1 through 1-15, and the adoption of the TIF Plan for TIF District No. 1-16. 2. A motion to deny adoption of the resolution. 3. A motion to table any action. C. Staff Recommendation; Staff recommends Alternative Action No. 1. The project meats the Monticello TIF Policloo, creatoo hobo within the state, increaoeo the tax base of the state, and discourageo a buoin000 from leaving the county. Page 1 HRA AGENDA MARCH 2, 1994 Su000rtina Data: A copy of the TIF Plan and a copy of the resolution for adoption. Pape 2 MODIFIED CENTRAL MONTICELLO REDEVELOPMENT PLAN FOR REDEVELOPMENT PROJECT NO. 1 INCLUDING MODIFIED TAX INCREMENT FINANCING PLANS FOR TAX INCREMENT FINANCING DISTRICTS NO. 1-1 THROUGH 1-15 AND TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 1-16 March 14, 1994 This document was drafted by: Public Resource Group, Inc. 4205 Lancaster Lane, Suite 1100 Minneapolis, MN 55441 (612) 550-7979 (As adopted August 10, 1992) 3 acres of land located in Lot 10 of AUDITOR'S SUBDIVISION NO. 1, according to the recorded map thereof, being in the Northwest Quarter of the Northwest Quarter of Section 13, Township 121, Range 25, Wright County, Minnesota lying easterly of REMMELE ADDITION according to the recorded plat thereof, lying southwest of Interstate No. 94 and lying northeasterly of the northerly right of way of Chelsea Road. Part of PID Number: 155-011-000101 (As adopted April 12, 1993) Lot 6, Block 2, Oakwood Industrial Park. PID Number: 155-018.002060 (As adopted March 14, 1994) Lot 3, Block 3, Oakwood Industrial Park. PID Number: 155-018-003030 Subsection 1.9. Public im=vements and Facilities Within Redevelopment project No. 1. Publicly financed improvements within Redevelopment Project No. I to be financed include: (As adopted November 29, 1982) 1. Land acquisition; and 2. Special assessments. I -2l (As adopted September 27, 1993) 1. Land acquisition; 2. Site development; 3. Site improvements; and 4. Utilities. (As adopted August 10, 1992) 1. Land acquisition; and 2. Site development. (As adopted April 12, 1993) 1. Land acquisition; and 2. Public Improvements. (As adopted March 14, 1994) 1. Land acquisition. Subsection 1. 10. Estimated Public Costs and SuMmi ive Data. The estimated costs of the public improvements to be made within Redevelopment Project No. I and financed by tax increments derived primarily from Tax Increment Financing districts within Redevelopment Project No. l are as follows: I-26 listrict No. 1-16 (As adopted March 14, 1994) Land Acquisition S55 - Subtotal $53,000 Administration 7,500 Professional Services 7"500 Subtotal $70,000 Capitalized Interest 8,365 Discount LM TOTAL $80,000 (As adopted November, 1982) Subsection 1.11. Land Use. All new and/or existing development on land identified on Exhibits 1-C through I -F as "property to be acquired" or "possible acquisition" will be subject to the following uses and requirements: 1. Uses Permitted in Designated Areas. a. Ij—All permitted, accessory and conditional uses as specified in Chapters 15 and 16, Monticello Zoning Ordinance, relating to I -I (Light Industry) and I-2 (Heavy Industry) zones. Planned Unit Developments, where applicable, will be considered. b. o si g(Residential--AII permitted, accessory and conditional uses as specified in Chapters 8 and 10, Monticello Zoning Ordinance, relating to R-3 (Medium Dcnsity Residential) and R -B (Residential -Business) zones. Planned Unit Developments, where feasible, will be encouraged. C. Downtown/Commercial--All permitted, accessory, and conditional uses in accordance with the provisions governing all "B" zones and including R -B, providing however that any commercial development in an R -B zone shall be coordinated with the goals and objectives of the Housing Plan. Planned Unit Developments, especially in the B-3 zone (Highway Business), will be encouraged. 2. Additional Provisions. I-37 SECTION XVII TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 1-16 Subsection 17.1. Statement of Objectives. See Subsection 1.4 of the Redevelopment Plan. Subsection 17.2. The Redevelopment Plan. See Section I, Subsections 1.1 through 1.20. Subsection 17.3. Description of the Proiect. The project, located within Tax Increment Financing District No. 1-16, consists of the construction of an 16,800 square foot office/manufacturing facility. This facility is to be constructed in the summer of 1994 and completed by January 2, 1995. The company currently employs 12 people. It is anticipated that 8 additional full-time positions will be created as a result of this project. Subsection 17.4. Parcels to be Included in Tax Increment Financing District No. 1-16. The following property is located in the City of Monticello, County of Wright, State of Minnesota. Lot 3, Block 3, Oakwood Industrial Park. PID Number: 155-018.003030 Subsection 17.5. Parcels in Ac Uisition. The Authority intends to acquire the property listed in Subsection 10.4, which property is located within Tax Increment Financing District No. 1-16. Properties identified for acquisition will be acquired either by the City or the Authority in order to accomplish public improvements listed in Subsection 1.11 of the Redevelopment Plan hereof. XVII -1 Subsection 17.6. Development Activity in Tax Increment Financing District No. 1-16 for Which Contracts will be Signed. The following contract(s) will be entered into by the Housing and Redevelopment Authority and the person(s) named below: Prior to the certification of Tax Increment Financing District No. 1-16, a Development and Assessment Agreement will be executed between the Housing and Redevelopment Authority of Monticello and Todd R. Schulz and LeRoy E. Schulz. Subsection 17.7. Colter Specific Development Expected to Occur within Redevelopment Project No. 1. (As specific development is expected to occur, it will be inserted into this Subsection.) Subsection 17.8. Estimated Public improvement Costs and SuppWive Data. See Subsection 1.10 of the Redevelopment Plan for estimated costs associated with Redevelopment Project No. 1. Subsection 17.9. Sources of Revenue. Land acquisition costs, and othcr costs outlined in Subsection 1.10 of the Redevelopment Plan will be financed through the annual collection of tax increments. Subsection 17.10. Original Tax Capac W. Pursuant to Section 469.177, Subd. 1, of the Tax Increment Financing Act, the original tax capacity value for Tax Increment Financing District No. 1-16 is estimated to be $693, based on the tax capacity value of all taxable real property within Tax Increment Financing District No. 1-16. Pursuant to Section 469.177, Subds. 1 and 4, of the Tax Increment Finwrtcing Act, the County Auditor of Wright County (the 'County Auditor") shall certify in each year the amount by which the original tax capacity value has increased or decreased as a result in a change in tax-exempt property within Tax Increment Financing District No. 1-16, reduction or enlargement of Tax Increment Financing District No. 1-16 or changes in connection with previously issued building permits. In any year in which the current tax capacity value of Tax Increment Financing District No. 1-16 declines below the original tax capacity value, no tax capacity value will be captured and no tax increment will be payable to the Authority. XVII -2 Subsection 17.11. Estimated Captured Tax Capacity Value. PursuanttoSection 469.175, Subd. 1, and Section 469.177, Subd. 2, of the Tax Increment Financing Act, the estimated captured tax capacity value in Tax Increment Financing District No. 1-16 at final completion will approximate $13,968. This estimated annual captured capacity value is determined in the following manner: Estimated Tax Capacity Value at Final Completion $16,661 Original Tax Capacity Captured Tax Capacity Value' 0 $15,968 Please refer to Exhibit XVI -B for the year-to-year expected tax increment for Tax increment Financing District No. 1-16. Subsection 17.12. Type of Tax Increment Financing District. Tax Increment Financing District No. 1-16, is pursuant to Section 469.174, Subd. 12, an Economic Development District as described below: "Economic Development District' means a type of tax increment financing district which consists of any project, or portions of a project not meeting the requirements found in the definition of redevelopment district or housing district, but which the authority finds to be in the public interest because: (a) It will discourage commerce, industry or manufacturing from moving their operations to another state; or (b) It will result in increased employment in the municipality; or (c) It will result in the preservation and enhancement of the tax base of the municipality.' Subsection 17.13. Duration of Tax Increment Financing District No. 1.16. Pursuant to Section 469.176, Subd. 1, of the Tax Increment Financing Act, the duration of Tax increment Financing District No. 1.16 will be eleven (11) years from the approval of the Tax Increment Financing Plan, or nine (9) years from receipt of the first tax increment, whichever is less. XVII -3 Subsection 17.14. $Qposed Development Analysis. Pursuant to i Minnesota Statutes, Section 469,175, Subd. 1(7), specific findings and analysis have been completed relating to the proposed development in Tax Increment Financing District No. 1-16. Additional relevant documentation relating to the findings and analysis will be on file and available for review in the City Administrator's office. Subsection 17.15. Estimated Impact on Other Taxing ]urisdictiom. Test No. 1: The estimated impact on other taxing jwisdictiotn assumes construction would have occurred without the creation of Tax Increment Financing District No. 1-16. If the construction is a result of Tax Increment Financing, the impact is $0 to other entities. Test No. 2: Notwithstanding the fact that the fiscal impact on the other taxing jurisdictions is $0 due to the fact that the financing would not have occurred without the assistance of the City, the following estimated impact of Tax Increment Financing District No. 1-16 would be as follows if Test No. 1 (the "but for" test) was not met: IMPACT ON TAX BASE XVII -4 Original Net Future Net Captured Net Tax Base Tax Capacity Tax Capacity Tax Capacity District % Entity Payable 1994 Payable 1994 Payable 1994 Payable 1994 of Entity Wright County $48,638,744 5693 $16,661 $15,968 .033% City of Monticello $15,583,604 $693 $16,661 $15,968 .102% I.S.D. No. 882 $18,344,524 $693 $16,661 $15,968 .087% Hospital District $23,874,025 $693 $16,661 $15,968 .067% XVII -4 IMPACT ON TAX CAPACITY MILL RATES Fatity Gross Tax Rate 1994 Potential Taxes Wright County 31.965 $ 5,104 City of Monticello 17.530 2,799 I.S.D. No. 882 60.634 9,682 Hospital District 2.744 483 TOTALS 112.873 $18,023' Please refer to Exhibit XVI -B for the year-to-year expected tax increment for Tax Increment Financing District No. 1-16. Subsection 17.16. Cash Flow Assumptions and Analysis. A. Future Tax Ca an city_. The estimated future tax capacity of Tax Increment Financing District No. 1-16 at final completion as determined by the City Assessor is $16,661, payable 1996. Please refer to Exhibit XVI -B for the year-to-year expected tax increment from Tax Increment Financing District No. 1-16. B. Pcoiected Timing. The payment of the first full tax increment from Tax Increment Financing District No. 1-16 will be received by the Authority in 19%. C. Original Tax Capacity. The County Assessor's records show the original tax capacity of Tax Increment Financing District No. 1.16 to be $693 fc: taxes in 1993 and payable in 1994. D. Gross Tax Capacity Rate. The gross tax capacity rate is 112.873 percent. E. Tax Increment. Total tax increment at the completion of all redevelopment activity has been calculated assuming a static gross tax capacity rate and a valuation increased by zero percent (0%) compounded annually. F. Cavi al Eximnditures. Capital expenditures are a summary of the items associated with the public improvement costs set forth in Subsection 10.8 and are to be financed from the proceeds of the Bonds and tax increment revenue. XVII -5 Subsection 17.17. Estimated Amount of Bonded lUdGbIldma. It is anticipated that $80,000 of bonded indebtedness will be incurred with respect to this portion of the Redevelopment Project. Subsection 17.18. Tax Increment Financing Account for Tax Increment Financing District No. 1-16. The tax incronent received with respect to Tax Increment Financing District No. 1-16 will be submitted by the Authority to the City and segregated by the Authority in a special accatnt or accounts (the 'Tax Increment Account') on its official books and records or as otherwise established by resolution of the City to be held by a trustee or trustees for the benefit of holders of the Bonds. Subsection 17.19. Modification of Tax Increment Finand"District No. 1-16. As of March 14, 1994, there have been no modifications made to Tax Increment Financing District No. 1-16. XVII -6 r'0 1,ib SOLTIo EXHIBIT XVII -B EXPECTED YEAR-TO-YEAR TAX INCREMENTS RELATING TO TAX INCREMENT FINANCING DISTRICT NO. 1-16 AND TAX CAPACITY ANALYSIS ADJUSTMENT FACTOR: A. March, 1994 Establishment Date B. January 2, 1994 Base Year Capacity Date C. $693 Base Year Capacity Value D. January 2, 1989 Fifth Preceding Year Capacity Date E. $972 Fifth Preceding Year Capacity Value F. $279 Five Year Capacity Value Increase G. (.28703) Five Year Total Increase Ratio H. (.05741) Five Year Average Increase Ratio ' I. 0 Annual Base Year Adjustment Factor Adj. Future Net Cap Annual Base Adj. Year TC Factor Bas TC TC TC Rate M 1993/94 5693 0 516,661 1.12873 1994/95 5693 $15,968 S 0 1995/96 $693 $15,968 518,024 1996/97 $693 $15,968 $18,024 1997/98 $693 $15,968 $18,024 1998/99 $693 $15,968 $18,024 1999/2000 $693 $15,968 $18,024 2000/2001 $693 $15,968 $18,024 2001/2002 S693 $15,968 $18,024 2002/2003 $693 $15,968 $18,024 2003/2004 $693 $15,968 $18,024 Avem9e Annual Tax Increment: $18,024. XVII -8 IM 11-1—TA t 0--u I EO DISTRICT CERTIFICATION FORM Date Prepared: February 11. 1994 Name of District or Modification: Tax Increment Financing District No. 1-16 Date of City Council Approval: Marcl+ 14 1994 ECONOMIC DEVELOPMENT DISTRICT CERTIFICATION At the time of district creation or naMcation. the follmWnp cmditions annly: The project does not meet the requirements found in the definition of a redevelopment district, housing district, or a mired underground space development district. —1L The project was created after August 1, 1979, and was designated an economic development tax increment district, as defined in Minnes jR Statutes, Section 469.174, Subd. 12, because: X a) It will discourage commerce, industry or manufacturing from moving their operations to another state. b) It will result in increased employment in the municipality. c) It will result in preservation and enhancement of the tax base of the municipality. sum=ong documentation on file: Land Use Plan Map JL City Council Resolution Project Objectives Other: This Form Prepared by: Public Resource Group_ Inc. Original Building Condition Data Collected by: N/A Documentation in support of District Certification is on file at the City offices. XVII -9 APPENDIX B Chronology of Resolutions Establishing the Development Program, the Development District, the Tax Increment Financing Plans, and the Tax Increment Financing Districts DEVELOPMENT DISTRICT NO. 1 TAX INCREMENT FINANCING DISTRICT NO. 1-16 Dwe-EcbmuAsh+ v 11 1994 Letters sent to Wright County, Independent School District No. 882, and Hospital District. Febty 28. 1994 Resolution of the City Council calling for a Public Hearing. February+ 28 1994 Submit Notice of Public Hearing to local newspaper. March 2, 19941 Mare 9 1994 Notice of Public Hearing is published in the local newspaper, calling for a Public Hearing on March 14, 1994. Marc 2.1994 HRA approval of the Modified Redevelopment Plan. March 14. 1994 Resolution of the City Council modifying the Redevelopment Plan for Redevelopment Project No. l and modifying die Tax Increment Financing Plan for Tax Increment Financing District No. 1-16. Appendix B -1 Commissioner introduced the following resolution, the reading of which was dispensed with by unanimous consent, and moved its adoption: HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO WRIGHT COUNTY STATE OF MINNESOTA Resolution No. A RESOLUTION RELATING TO THE MODIFICATION, BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO, OF THE REDEVELOPMENT PLAN RELATING TO REDEVELOPMENT PROJECT NO. 1, THE MODIFICATION OF THE TAX INCREMENT FINANCING PLANS RELATING TO TAX INCREMENT FINANCING DISTRICTS NO. 1-1 THROUGH 1-15 AND THE APPROVAL AND ADOPTION OF THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 1-16, ALL LOCATED WITHIN REDEVELOPMENT PROJECT NO. I. BE IT RESOLVED by the Commissioners (the "Commissioners") of the Housing and Redevelopment Authority (the "Authority") in and for the City of Monticello, Minnesota (the "City"), as follows: Section 1. Recitals. 1.01. It has been proposed that the Authority modify, by increased project costs and enlarged geographic area, Redevelopment Project No. I, pursuant to and in accordance with Minnesota Statutes, Sections 469.001 to 469.047, inclusive, as amended. It has been further proposed that the Authority modify, by increased project costs, the Tax Increment Financing Plans relating to Tax Increment Financing Districts No. 1-1 through 1-15 and establish Tax Increment Financing District No. 1-16 and approve and adopt the Tax Increment Financing Plans relating thereto, all located within Redevelopment Project No. 1, pursuant to and in accordance with Minnesota Statutes, Sections 469.174 to 469.179, inclusive, as amended. 1.02. The Authority has investigated the facts and has caused to be prepared a proposed Modified Redevelopment Plan (the "Modified Redevelopment Plan') for Redevelopment Project No. 1, defining more precisely the increased project costs and enlarged geographic area to be made to Redevelopment Project No. 1, the proposed Modified Tax Increment Financing Plans for Tax Increment Financing Districts No. 1-1 through 1-15 and Tax Increment Financing Plan (the 'Tax Increment Financing Plan') for Tax Increment Financing District No. 1-16 (collectively referred to as the "Plans") 1.03. The Authority and the City have performed all actions required by law to be performed prior to the modification of Redevelopment Project No. 1, the modification of Tax Increment Financing Districts No.l- 1 through 1-15 and the establishment of Tax Increment Financing District No. 1-16 and the adoption of the Plans relating thereto. 1.04. The Authority hereby determines that it is necessary and in the best interest of the City at this time to modify Redevelopment Project No. 1, to modify Tax Increment Financing Districts No. 1-1 through 1-15 and to establish Tax Increment Financing District No. 1-16 and approve the Plans relating thereto, and to request that the City Council (the "Council") hold a public hearing relating to the above -stated matters. Section 2. Approval of the Modified Redevelopment Plan far Redevelopment Project No. 1. 2.01. Subject to the finding, determination, and approval of the Modified Redevelopment Plan for Redevelopment Project No. 1 by the City Council of the City, the Modified Redevelopment Plan for Redevelopment Project No. 1 is hereby approved by the Commissioners of the Authority. -2- The increased project costs shall be described in the Modified Redevelopment Plan for Redevelopment Project No. 1, approved in Section 4 hereof. Section 3. AWroval of the Tax Increment Financing Plans fol Tax Increment Financing Districts Nos. 1-1 through 1-16. 3.01. Subject to the finding, determination, and approval of the Modified Tax Increment Financing Plans for Tax Increment Financing Districts No. 1-1 through 1-15 and Tax Increment Financing Plan for Tax Increment Financing District No. 1-16 by the Council of the City, the Tax Increment Financing Plans for Tax Increment Financing Districts Nos. 1-1 through 1-16 are hereby approved by the Commissioners of the Authority. Section 4. Approval of the Respective Plans. 4.01. The Plans presented to the Authority on this date, are hereby approved and adopted by the Authority and shall be forwarded to the Council with the request that the Council hold a public hearing relating to the adoption of the Plans for Redevelopment Project No. 1 and Tax Increment Financing Districts Nos. 1-1 through 1-16. Section 5. Filing of Plans. 5.01. The Authority shall cause the Plans, all as approved and adopted, to be filed with the Minnesota Department of Revenue. Dated: March 2. 1994 Chairman Attest: 011ie Koropchak, Executive Director (SEAL) -3- NRA AGENDA MARCH 2, 1994 a 4. Public hearing on the acquisition and dismosition of raw lands described as Lot 3. Block 3. OIP, and the adoption of the resolution relatina thereto. A. Reference and backaround. Chairperson Larson is requested to open the public hearing for comments or opposition. The enclosed public hearing notice appeared in the Monticello Times on February 16 and 23, 1994 satisfying Minnesota Statutory requirements. When the HRA acquires or disposes of raw land for the purpose of redevelopment a hearing becomes necessary. The HRA will acquire Lot 3, Block 3, OIP from the Oak Industrial Partnership and dispose of the raw land via a quit claim deed to the Schulz Properties. The said raw lands are described as the TIP District No. 1-16 boundaries within the TIF Plan and the Private Redevelopment Contract. The purpose for redevelopment is the creation of 20 industrial jobs, increased annual tax revenue of $18,024, and other economical benefits to the community. ' Upon completion of public comments or opposition, the HRA Chairperson may close the public hearing and call for a motion to adopt the enclosed resolution. B. Alternative Action; 1. A motion to adopt the resolution authorizing the acquistion and disposition of raw lands to the Schulz Propertios. 2. A motion to deny adoption of the resolution. 3. A motion to table any action. C. Staff Recommendation: With no opposition from the public, staff recommends Alternative Action No. 1. D. SUDDortina Data: Copy of the public hearing notice and the resolution for adoption. Page 1 State of Minnesota ) PRINTER'S AFFIDAVIT `y )ss. OF PUBLICATION County of Wright ) Donald O. Smith, being duly sworn, on oath says that he is the publisher of the newspaper known as The Monticello Times, and has full knowledge of the facts, which are sated below: (A) The newspaper has complied with all of the requirements constituting qualifta- tion as a qualified newspaper, as provided by Minnesota Statute 331 A.02, 331 A.07, and other applicable laws, as menHpapeNr, (B)The pit. led which is attached, was cut from the columns of sail and was printed and published o e each week for successive weeks; it was first published on Thursday, the day of, I�, and was thereafter printed rand�� blisbed on every Thursday to and including Thursday, the y- f day of 1 KL.., 192.'6 and printed Wow is a copy of the tower ase alphabet from A to 2, bah inclusive, which is hereb. acknowledged as being the size and kind of type used in the composition and publica- tion of the notice: abodefghilklmnowilluvikuyz BY: kwRr M. Mr -KE WRIGHT COUNTY Np7AiYP�"UNTY A TITLE: icor/publi er COIJpITr w c..e:.tr� E 46.4 m c to Subscribed and sworn to before me on this Q _ - day of, 190r - Notary Public, Wright County, Minnesota My commission expires 19Z 19Z RATE INFORMATION (1) Wivest classified rate paid by commercial users for comparable space $10.73/column inch (2) Maximum rate allowed by low for the above matter f 6.71/column inch (3) Rate actually charged for the above matter f 6.71/column inch j Notice of Public mum HODEDIO AND REDBV[IOVUM A{RNOIUry CIN OF MOtTCELLO{ODNry OF WRXWT STATE OF MKNEEOTA NOTICE is HEREBY GNEN toot EN Housing and Reavelopmam Ardorltyr ter -ALO"-) of the City of Momkallo. County of WnpM. Stat* of Mlnnuota. will Rote a public nearing Wedrrsday, M" 9. 1994. at apmadmafefy 7.00 P.M. 81 lice Qty Hap, bbnataao, 4Urweaata, raleflnp to M Proposed acquisition and disposition of property V authorized in the Tar increment Financing Pun for Tax 0K3mi. am Flinarvin9 Duma No. i.ia. The PfM 01004110dWanton ed for ac and auaaaquent dismtltion weirsTax Increment FheMrq DSM No. 1.1E is as toaora: Legal Dirteription: Lot 3. Bbea 3. Oakwood haustriau park.of Mu borki. COxny of nt, aua of mkvtaaou PIDa 155.2 -0OJ000. -01011 ttpapellaY, HRA Executry Director (Feb. 17 E t4. t 9941 HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO, MINNESOTA, AUTHORIZING THE ACQUISITION AND DISPOSITION OF LANDS TO THE SCHULZ PROPERTIES RESOLUTION NO. WHEREAS, both the Housing and Redevelopment Authority in and for the City of Monticello, Minnesota, (the "Authority") and the Schulz Properties, a general partnership, (the "Redeveloper") shall agree to the terms of the Contract for Private Redevelopment by and between th,: Housing and Redevelopment Authority in and for the City of Monticc.l.lo and the Schulz Properties and all the convenants therein; and WHEREAS, the Rousing and Redevelopment Authority in and for the City of Monticello has adopted the Tax Increment Finance Plan relating t-, Tax Increment Finance District No. 1-16; and WHEREAS, the Housing and Redevelopment Authority in and for the City of Monticello Feld a public hearing and heard no comments or opposition on the acquisition and disposition of the raw lands described as: Lot 3, Dluck 3, Oakwood Industrial Park, City of Monticello, County of Wright. WHEREAS, the Council iu and for the City of Monticello shall hold a Public Hearing and consider adoption of a Resolution for the Establishment of Tax Increment Finance District No. 1-16 and the approval and adoption of the Tax Increment Finance Plan on March 14, 1994: and WHEREAS, 1.„t1j the Housing and Redevelopment Authurity in and fur the City of Monticello and the Schulz Properties shall agree to an amount up to, but not -to -exceed, Flfty-Five Thousand Dollars and No Cents (935,000) as the level of Tax Increment Finance assistance for the acquieitictt atad disposition of said described raw lands. NOW, THEREFORE, HE IT RESOLVED by the governing body of the Housing and Redevelopment Authority in and for the City of Monticello having hold a public hearing fluds: It will discourage commerce, industry, or manufacturing from moving their operations to another state; and It will result in increased employment in the state; and 3. It will result Su preservation and enhancement of the tax baso of the state. Page 1 HRA RESOLUTION NO. MARCH 2, 1994 The Housing and Redevelopment Authority in and for the City of Monticello, Minnesota, does hereby authorize the acquisition and disposition of the said described raw lands to the Schulz Properties. Adopted by the Housing and Redevelopment Authority in and for the City of Monticello, Minnesota, this 2nd day of March „ 1994 . SEAL ATTEST: IIRA Executive Director Page 2 HRA Chairperson 5. Consideration to review and accept the Private Redevelopment Contract between the HRA and the Schulz Properties. v A. Reference and Backqround: The first draft of the Private Redevelopment Contract as prepared by Holmes 6 Graven was received and delivered to the parties involved on February 18, 1994. At this time, the contract has been partically reviewed and numerous typing errors found. The final draft of the contract is generally agreed upon and executed by both the HRA and the Redeveloper prior to City Council approval of the TIF Plan which is scheduled for March 14, 1994. The contract states the Redeveloper has entered into a purchase agreement with the Oakwood Industrial Partnership. In order for the HRA to assist the Redeveloper, the HRA will accept an assignment of the Redeveloper's interest in the purchase agreement, acquire the property, and convey title to and possession of the property to the Redeveloper via a Quit Claim Deed. This upon satisfaction of the enclosed terms and conditions (See supporting data). Construction of minimum improvements, 16,640 sq ft manufacturing/office facility, to begin (yet to be determined) and completed by October 1, 1994. The contract requires the Redeveloper to secure the necessary insurances, and includes a Certificate of Completion and an Assessment Agreement with a minimun estimated market value (EMV) for land and building of $400,000. The EMV agreed upon previously by the County Assessor and the Redeveloper. Upon review the mayor terms and conditions of the contract, the HRA is asked to consider the following actions. B. Alternative Actions: 1. A motion to accept tho terms and conditions of the Private Redevelopment Contract as outlined. 2. A motion to deny acceptance of the terms and conditions of the Private Redevelopment Contract. 3. A motion to amend the terms and conditions of the Private Redevelopment Contract. C. Staff Recommendation; Staff will make a recommendation upon final review of the contract. Staff does recommend the HRA make a motion thereby giving direction to the NRA Chairperoon and Executive Director for execution of the contract. Page 1 HRA AGENDA MARCH 2, 1994 Suaportinc Data: Excerpt from the Private Redevelopment Contract. Page 2 ARTICLE III Acouiaition and Convevance of Prommm"i Public f ., , — - i ... :...ts Section 3.1. Acouisition and Convevance of the Property. As of the date of this Agreement, the Redeveloper has entered a purchase agreement to acquire the Redevelopment Property from Oakwood Industrial Park, a Minnesota partnership. In order to assist the Redeveloper in making development of the lnnimum Improvements economically feasible, the Authority will subject to the conditions in Section 3.2 accept an assignment of the Redeveloper's interest in the purchase agreement, acquire the Redevelopment Property, and convey title to and possession of the Redevelopment Property to the Redeveloper at a reduced cost, subject to all the terms and conditions of this Agreement. Section 3.4. Conditions of Convevance; Purchase Price. (a) The Authority shall acquire and convey title to and possession of the Redevelopment Property to the Redeveloper by a deed substantially in the form of the Deed attached as Schedule B to this Agreement. The Authority's obligation to acquire and convey the Redevelopment Property to the Reoeveloper is subject to satisfaction of the following terms and conditions: (i) the Redeveloper having deposited with the Authority the amount of $37,000, which amount represents the coat to the Authorityof acquiring the Redevelopment Property; .� (11) the Redeveloper having submitted to the Authority evidence of financing as required under Section 7.1; (iii) the Redeveloper having submitted and the Authority having \�� L approved Construction Plane for the Minimum Improvements; (iv) the Authority having reviewed and approved title to the 5 Redevelopment Property as set forth in Section 3.4; and 0 .j (v) the Redeveloper having dellvored the Letter of Credit as required ©o under Section 4. S; and 9� (v!) the Redeveloper not being in default under this Agreement. The closing on acquisition and conveyance of the Redevelopment Property from the Authority to the Redeveloper shall occur ten days after all conditions specified in this Section 3.2(a) have been satisfied, or such other date as the Authority and Redeveloper agree in writing. (b) The purchase price to be paid to the Authority by the Redeveloper In exchange for the conveyance of the Redevelopment Property shall be $2,1100; provided that the Redeveloper shall deposit the amount of $57,000 in accordance with Section 3.2(a), and the Authority shall reimburse the Redeveloper in the amount of $58,000 upon receipt by the Authority of written evidence from the Redeveloper In a form satisfactory to the Authority and signed by the Redeveloper's contractor, simple 10110-66 engineer or other appropriate construction official, demonstrating that construction of the Minimum Improvements is at least 30 percent complete. Section 3.3. Place of Document Execution. Delivery and Recording. (a) Unless otherwise mutually agreed by the Authority and the Redeveloper, the execution and delivery of all deeds, documents and the payment of any purchase price shall be made at the offices of the Authority, or such other place as the parties may aWree to. (b) The Deed shall be in recordable form and shall be promptly recorded In the proper office for the recordation of deeds and other instruments pertaining to the Redevelopment Property. The Redeveloper shall pay all recording costs, including State Deed Tax, in connection with the acquisition and conveyance of the Redevelopment Property, and shall pay real estate taxes payable in 1893 (except and to the extent that the vendor on the Purchase Agreement has made such payments) , title committment and premium fees, and any title closing fees. Section 3.4. Title. (a) Within a reasonable time after the date of this Agreement, the Redeveloper shall obtain and furnish to the Authority a commitment for the issuance of a policy of title insurance for the Redevelopment Property. The Authority shall have ten (10) days from the date of its receipt of such commitment to review the state of title to the Redevelopment Property and to provide the Redeveloper with a list of written objections to such title. Upon receipt of the Authority's list of written objections, the Redeveloper shall proceed in good faith and with all due diligence to attempt to cure the objections made by the Authority. Not earlier than eleven days following the date the Authority shall have received a commitment for the issuance of a policy of title insurance for the Redevelopment Property from the Redeveloper or, in the event the Authority shall have provided the Redeveloper with a list of written objections, within ten (10) days after the date that all such objections have been cured to the reasonable satisfaction of the Authority, the Authority and Redeveloper shall proceed with the acquisition and conveyance of the Redevelopment Property pursuant to Sections 3.1 and 3.2 of this Agreement. In the event that the Redeveloper has failed to cure objections within sixty (80) days after its receipt of the Authority's list of such objections, either the Redeveloper or the Authority may by tho g!ving of written notice to the other, terminate this Agreement, upon the receipt of which this Agreement shall be null and void and neither party shall have any liability hereunder. The Authority shall have no obligation to take any action to clear defects in tho title to the Redevelopment Property. (b) The Authority shall take no actions to encumber title to the Redevelopment Property between the time the Authority acquires the Redevelopment Property and the time which the Deed Is delivered to the Redeveloper. Section 3.5. Soil Conditions. The Redeveloper acknowledges that the Authority makes no representations or warranties as to the condition of the soils on the Redevelopment Property or its fitness for construction of the Minimum Improvements or any other purpose for which the Rodeveloper may make use of such property. The Rodeveloper further agrees that it Will indemnify. defend, and hold harmless the Authority, the City, and their governing body members, officers, and employeee, from any claims or actions arising out of the presence, if any, of hazardous wastes or pollutants on the Redevelopment Property. Wu5W1 Milo." Section 3.S. Financine of Authoritv Costs. (a) The Authority will reimburse the Authority fund from which the Authority paid the reimbursement to the Redeveloper under Section 3.2(b) hereof, by depositing in such fund the amount of S53 , 000 (the "Principal Amount") together with interest thereon at the rate of 7.00 percent per annum, In semi-annual installments on each August 1 and February 1, commencing August 1, 1999 and continuing through February 1, 2005, which deposits will be made from Available Tax Increment as described In this Section. Interest on the Principal Amount shall accrue from the date of the payment by the Authority to the Redeveloper under Section 3.2(b). Availab:q tax increment shall be applied first to accrued interest and then to unpaid principa:. (b) For the purposes of this Section 3.6, the term "Available Tax Increment" means 90 percent of the Tax Increment received by the Authority from the TIF District in the six-month period before the date of each scheduled deposit under this Section. (c) If any portion of the Principal Amount or accrued interest thereon remains unpaid from Available Tax Increment after the Authority makes the final deposit on February 1, 2003, the Redeveloper shall pay to the Authority such unpaid balance within 10 days after receiving written notice thereof from the Authority. At any time, at the Redeveloper's request, the Authority will provide progress reports to the Redeveloper regarding the balance of unpaid Principal Amount and accrued interest thereon. Section 3.7. Payment of Authoritv Exvenses. Redeveloper has previously, by separate agreement, deposited the sum o? $5,000 with the Authority. Such deposit was intended to pay the Authority's expenses In connection with the preparation and approval of this Agreement, and then to be returned to Redeveloper in the event that this Agreement be executed by the Parties. The Parties now agree that the deposit shall be retained by the Authority until the Closing on the purchase of the Redevelopment Property. The deposit shall be returned to the Redeveloper In the event that the Closing takes place by the date specified in Section 11.1 of this Agreement. If the Closing does not take place by such designated date, all right, title and interest in the deposit shall be deemed transferred to the Authority. &JlUM Yip -N 6. Consideration to approve .the minimum improvements Certificate of Completion as relates to the Private Redevelooment Contract between the HRA and the Birkelands. Reference and Backqround. Within the Private Redevelopment Contract dated April 12, 1993 between the HRA and the Birkelands, the Redeveloper was to begin construction of the minimum improvements (9,320 sq ft facility) within 30 days of execution of the contract. Construction of the minimum improvements to be completed by December 31, 1993. Promptly after completion of the minimum improvements, the HRA is to furnish the Redeveloper with a Certificate of Completion. Certification by the HRA shall be a conclusive determination of satisfaction and termination of the agreements and covenants within the contract. As per the enclosed December 20 letter, Chairperson Larson, Building Inspector Anderson, and Koropchak were to assess the site for completion on January 19, 1994. On January 18, Steve Birkeland, Jr. called to reschedule the meeting therebye allowing him to meet with a potential customer in Fargo the morning of the 19th. The meeting was rescheduled for February 14. February 14, the group assessed and determined the following: 1. The semi -truck perked nutside and to the rear of the 6 - foot screen -fence must be moved and parked within the screen -fenced area. No outdoor storage or parking is allowed outside the screen -fenced area. 2. The supplied van -accessibility sign must be erected to the outside handicap eignage pole and address -numbers must be erected to the outside front of the building. 3. General construction of the exterior/interior walls were determined as complete. 4. Gates must be installed at both screen -fenced entrances along Fallon Avenue. 8. The unscreened•fence area at the northwesterly corner of the facility was determined incomplete. However, it was discussed if a free-standing point building was constructed in this area, the outdoor screening requirements so set by the Planning Commission and City Council would be satisfied. 6. With the snow cover, asoeoaing the completion and germination of the lawn used was difficult to determine; however, the City has moniee in escrow for landscaping. Page 1 v HRA AGENDA MARCH 2, 1994 The group informed Mr. Birkeland Jr. that the City Zoning and Ordinances are written to protect both Mr. Birkeland and his neighbor's property and property values. Secondly, he was informed that the HRA members would review the February 14th assessment at the March meeting to determine issuance of the Certificate of Completion and thereafter he would be notified of the determination in writing. Thirdly, Mr. Birkeland was informed that as an appointed HRA members representing the City of Monticello, the members must be accountable to the taxpayers and the use of TIF revenues. Chairperson Larson may have some comments for the HRA members regarding the timing and approval of the building/site plans. Following discussion, the HRA is requested to consider the alternative actions. B. Alternative Action: 1. A motion to approve the Certificate of Completion. 2. A motion to deny approval of the Certificate of Completion. 3. A motion to approve the Certificate of Completion subject to. C. Staff Recommendation: Staff recommends Alternative Action No. 2. Mr. Birkeland did not complete the minimum improvements by December 31, 1993 nor Is he operating or maintaining the minimum improvemente in accordance to local, state, and federal laws and regulations. This would deny Mr. Birkeland the annual TIF paymente of 97,428.99 or $8,428.89. However, if the HRA determines that Mr. Birkeland Jr, received incorrect site plan information causing him a delay and to default on completion of the minimum improvements. Then, the HRA may wish to select Alternative Action No. 3 subject to immediate completion of Items 1 through 4 and items S and 6 completed by July 1, 1994. D. Supportina Data: Copy of the lottero dated November 9 and December 20, 1993, and a copy of the Certificate of Completion for approval. Page 2 250 East Broadway P. O. Box 1147 Mondu:Ho, MN 55362.9245 Phone. (612) 295-2711 Mem: (612) 333-5739 Fax. (612) 2954404 Mr. Stephen P. Birkeland, Jr. Custom Canopy, Inc. 219 Dundas Road Monticello, MN 85362 Dear Mr. Birkeland, Jr.: November 9, 1993 The Monticello Housing and Redevelopment Authority (HRA) reviewed the terms and conditions of the April 12, 1993, Private Redevelopment Contract between Stephen P. Birkeland, Jr. and Joan M. Birkeland and the NRA at their regular November meeting. As per the contract, the HRA noted the Redeveloper agreed to complete construction of the minimum improvements by December 31, 1993; secondly, agreed to construct, operate, and maintain the minimum improvements and the construction and redevelopment plane in accordance with all local, state, and federal laws and regulations; and thirdly, until maturity date, agreed to operate, maintain, preserve, and keep the minimum improvements in good repair and condition. Stephen, the HRA's intent of this letter is two -fold. First, is to remind the Redeveloper of the terms and conditions of the Private Redevelopment Contract. Secondly, to to advise the Redeveloper if the terms and conditions of the contract are not satisfied, the Rodeveloper stands to lose an annual payment of approximately 87,428.59 or 88,428.59 over eight years jr through the maturity date. The NRA aims for a "win/win" situation for the community and its new developments. If you have any questions Mr. Birkeland, Jr. November 9, 1993 Page 2 regarding the contract, please call 011ie Koropchak, HRA Executive Director, at 298-2711. Sincerely, HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO Al Larson Chairperson AL/ok cc: HRA Members Rick Wollsteller, City Adminletrator 250 East Broadway P. O. Box 1147 Monticello, MN 55362.9145 Phone: (612) 295.2711 Metro: (612) 333.5739 Fax: (612) 2954404 Mr. Stephen P. Birkeland, Jr. Custom Canopy, Inc. 219 Dundas Road Monticello. MN 66362 Dear Mr. Birkeland, Jr.: December 20, 1993 In reference to the Private Redevelopment Contract between Stephen P. Birkeland, Jr. and Joan M. Birkeland and the Monticello Housing and Redevelopment Authority (HRA), the Redeveloper agreed to complete construction of the minimum improvements by December 31. 1993. Thereafter, the HRA agreed to furnish the Redeveloper with a Certificate of Completion (Page 10, Section 4.4 of the Contract). In order for the HRA to make a conclusive determination of satisfaction and termination of the contract with respect to construction of the minimum Improvements and the dates for beginning and completion, HRA Chairperson Al Larson; Building Official Gary Anderson; and myself will make a site visit. The site visit has been scheduled for Wednesday, January 19, 1994, at 10:00 8. M. Stephen, if this date is not convenient, please call my office at 296-2711 to reschedule. We look forward to visiting your now facility at 219 Dundee Road. Sincerely, CITY OF MONTICELLO CQ, 011ie Koropchak HRA Executive Director cct Rick Wolfeteller, City Administrator Jeff O'Neill, Assistant City Administrator HRA Pile SCHEDULE D Certificate of Completion The undersigned hereby certifies the Stephen P. Birkeland, Jr. and Joan M. Birkeland have fully and completely compiled with the obligations under Article IV of that document entitled "Contract for Private Redevelopment", dated , 1993, between THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO, MINNESOTA ("Authority") and STEPHEN P. BIRKELAND, JR. and JOAN M. BIRKELAND ("Redeveloper") with respect to construction of the Minimum improvements located on Redevelopment Property described In the attached Exhibit A in accordance with the approved construction plans and are released and forever discharged from its obligations to construct under such above -referenced Article. Dated: ,1993. THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY IN THE PRESENCE OF: OF MONTICELLO, MINNESOTA By By STATE OF MINNESOTA ) )66. COUNTY OF WRIGHT ) The foregoing instrument was acknowledged before mo this day of , 1993 by , the of the Housing and Redevelopment Authority in and for the City of Monticello. Notary Public M51371 m neo-ro D-1 7. Consideration to authorize execution of the Sian Location Lease Aareement between the HRA and Whiteco. A. Reference and Backaround: Sometime ago the HRA became the owners, in name only, of Outlot A in Country Club Manor. Rick Wolfsteller has worked with the City Attorney on the preparation of lease agreements for the four billboard signs located on the parcel. Because the HRA relinquished its rights to revenues and expenditures, the HRA will not receive the annual $8,000 to $9,000 revenues generated by the signs. However, from legal point, Mr. Wolfeteller request the HRA execute the Sign Location Lease Agreements. B. Alterntive Actions: 1. A motion authorizing the execution of the Sign Location Lease Agreements. 2. A motion to deny authorization to execute the Sign Location Lease Agreements. 3. A motion to table any action. C. Staff Recommendation: , Staff recommends Alternative Action No. 1. D. Supportina Data: A copy of one of the agreements and the addendum. Page I Mailing Address: SNPPUV Address; P.O. Bee 545 6277 Mry. 10 Ew MartMleld. VII 64448 Mar.nrloK TNI 6444E Telaphow s (716) 7673448 (716( 6424770 (1NsuseY) 1.80040644. Date &1014M 1-1-94 M/HM97 Structure Number: SIGN LOCATION LEASE MN 157 City of Monticello Housing 6 Redevelopment Authority Name Address�Ten n* 62 - Social Security/federal ID Number Phone a/c( 612)295-2711 9245 o. • M.wn.nw e.w.rD.D,.Y «rn•.I.nwn nw•D. ruw 1e wnn«o "—Al.—_1OCthCentr&l _ •_1_•nwn e, .DD,D..,ww._5.75 wDw. I.w o-cn. rrv...nrc.l.rr aocnD.e .r. w.D'.mnr.D w«n. Iw n...ur.r.. Dr+Der a..n.q. 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D.nr•. n.rne.rw L..w..a »� o ^wee, u.+..o ewo-r,r� .rp o�o.�.n.D or r,. ,..r ..r.r. a m l...w . m.rr�,ro .nm....nMn l...w «.nD.r.eo•• r«.,w el l..w+cn«. n.me« �. r,....o.nr or s r•prwnr�ne rM I.n hpnm . r.mY W rrrrinl K Ogren M IM Nr.l M.crrp.e rn mr..or..rrwl With a 49 escalator/year. LOc.IrOr+OEbCMll grrpO.OE E.cE Or.lr SF7 Be ' VTYPE.' SECS': FACING TRAFFIC. N S E W SIDE HWY: N S E W ILLUM ,'SIL CD4 C�Ew Cwq. 0.1E Iwei.11CO r..Ol -- --- UIaACM -- __-- ACCEPTANCE: LESSEE SMALL NOT BE 08LIGATEO BY THIS LEASE UNTIL SIGNED BY AN EXECUTIVE OFFICER AT LESSEE'S EXECUTIVE OFFICES OR BY A GENERAL MANAGER AT LE6 E'S REGIONAL OFFICE. INNITtCO rtTR ON :V Th panlsa acknowledge end agree EMI tnsY nave read And Are prvlegM OF MMRCCOIN TldEe,l oollnd th ni lnecknowledge and that IM* COIItelMrA In and re 1 10.0100 uoe of lnu eGlsernent. ACCEP EDB LESSOR TITL /J� DATE 2-11� r _ •re lrECUI EO a Y.M.4LD Tng est, menl wee r0lu,so MO LEASED BY f r•us _ .00.000 DATE Sll`1/ 93 DATE I I peu.. W9.Dreytgv. warn cap, -I..Dq o— G.""C.• L.. C... .t"C.cc-_.Ow.Cna -cc.r-I...c. 1.1'1!' Cl:'- - .G ADDENDUM TO BION LOCATION LEASE Structure No. 157 This Addendum, made and entered into this 1st day of January, 1994 between City of Monticello Housing and Redevelopment Authority, as Lessor and Whiteco Metrocom, a Division of Whiteco Industries, Inc., as Lessee, which agreement amends and supplements a Sign Location Lease of even date attached hereto in the following particulars: 1. Notwithstanding anything in the Sign Location Lease to the contrary, during the initial one year term of this lease, or during any one year renewal term, Lessor reserves the right to terminate this agreement upon six (6) months written notice to Lessee. In the case of any such termination during the initial one year term or any one year renewal term, Lessee agrees to remove the sign structure, equipment, materials and fixtures placed upon the site within a reasonable period of time following the termination of the lease. Dated: Dated: WHITECO METROCOM, a Division CITY OF MONTICELLO HOUSING AND of Whiteco Industries, In2. REDEVELOPMENT AUTHORITY 441 By : By: Its: By: Its: r PUBLIC RESOURCE t GROUP, INC. Feb 24,1994 t February Marketing, Development & Finance Specialists Ms. 011ie Koropchak City of Monticello 250 East Broadway P.O. Box 1147 Monticello, MN 55362 STATEMENT Consulting Services—January 15, 1994 through February 14, 1994 1-20-94 LPK—Follow-up w/ 011ie re: Polycast .50 1-25-94 LPK—Follow-up w/ 011ie re: Polycast, Standard Iron documentation for closing .50 2-8-94 LPK—Fotlow-up w/ Paul Weingarden re: closing documents .50 2-14-94 LPK—Paul Weingatden re: Standard Iron documents .� NET CHARGEABLE HOURS: 1.75 Net Chargeable Hours ® S75/Hour $131.25 TOTAL AMOUNT DUE Lax CURRENT QUER-30 OVER b0 OVER.ffi $131.25 I TERMS: NET DUE UP41 �RFCC�EIPT, 1.339E PER MONTH SERVICE CHARGE ON I 4205 Lancaster Lane ZArtMEWC�Flirincapo1i, Minn. 55441 ♦ (612) 5547979 ♦ (612)550.9221 Fox PURCHASE CONTRACT BETWEEN THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO, MINNESOTA AND JAY C. MORRELL WHEREAS, the Housing and Redevelopment Authority (the "Authority"), In and for the City of Monticello, Minnesota, and Jay C. Morrell (the "Buyer") hereby agree to the terms and conditions set forth in this Purchase Contract dated FEBRUARY 10 , 1994, for the acquisition and disposition of said raw lands described as: Lot 6, Block 3, Oakwood Industrial Park, City of Monticello, County of Wright, Minnesota. Terme and conditions are as follows: WHEREAS, the "Buyer" shall purchase the said raw lands from the "Authority" at a purchase price of not -less -than $14,000 per acre and not -to -exceed 916,000 per acre; WHEREAS, the "Buyer" requests the 'Authority" prepare and submit a Purchase Agreement to Ronald and Dee Johnson (the "Sellers") for the acquisition of the said raw lands; WHEREAS, the "Buyer" shall pay for all document preparation and closing coats associated with and as required by the "Authority" for the acquisition and disposition of said raw lands; WHEREAS, the "Buyer" agrees that said raw lands usage shall be in compliance wills the iianticcllo City Ordinancogs; WHEREAS, the "Buyer" and the "Authority" agree that this Purchase Contract shall become null and void upon the failure of the "Authority" to deliver an executed Purchase Agreement for the acquisition of the said raw lands from the "Sellers" at a purchase price of not -to -exceed $14,000 per acre; and WHEREAS, the "Buyer" and the "Authority" agree that this Purchase Contract shall become null and void 90 days from the contract execution date. NOW, THEREFORE, upon execution of this Purchase Contract the "Buyer" and the "Authority" shall perform and comply to the terms and conditions set forth. Februnry 10 , 1994. THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO, MINNESOTA (THE "AUTHORITY") ItsC(ha� � erson O JI +� P J �< Cly C3 11;�L9 Its Executive Director SEAL THE "BUYER" /C Morrell STATE OF MINNESOTA SS. COUNTY OF WRIGHT The foregoing instrument was acknowledgedb ore a this day of aft$-to-s/�-. , 1990 by W/ LtrSCit and C9%%r L A o .fd.wc A4-� , the Chairperson and Executive Director of the Holdding and Redevelopment Authority In and for the City of Mont ice]�q,�,r,ti,,..,,,,M•,,•,.Nv�rrvw� j; •\ i14; Iflt It;U1y Y��c.---t wr...........V.....w k1A 'ry Public 4 STATE OF MINNESOTA SS. COUNTY OF WRIGHT The forego ni instrument was acknowledged before me this day of 1 1994 by Jay C. MorrolI, the Buyer. NJIAM R1d•.:H C "t 4IA Notar Public WRIf'tl� CtAi IfY 1..nro• = BURLINGTON NORTHERN RAILROAD Marketing 8 Property Services 4105 Lexington Avenue North Suite 200 Arden Hills, MN 55126 Tel. 612.490.6160 Fax 612-490-6167 February 11, 1994 Mr. Jeff O'Nell Assistant Administrator City of Monticello 450 Bast Broadway P.O. Boa 1147 Monticello, Minnesota 55362-9246 Dear Mr. O'Nelb Over the past two years, we have been discussing possible proposals on how to relocate the bulk all dealers on leased railroad In Monticello. Those same dealers have, on occasion, requested to purchase the lease premises from us. At this time, I am not aware if the City Is reviewing the relocation possibilities. In the event the City has no active plan that may be satisfactory to the railroad, It Is our Intent to determine If the lessees remain Interested In purchase of their lease sites. If so, we will then pursue those transactions. Please let me know Immediately If you have a proposal In mind that may accomplish the City's Interests. I plan to contact the lessees by the end of this month If I do not hear from you. Sincerely, 64 Bruce B. Opp Manager, Property 8ervI.,