HRA Agenda 07-06-1994AGENDA
MONTICELLO HOUSING AND REDEVELOPI4ENT AUTHORITY
Wednesday, July 6, 1994 - 7:00 p.m.
Monticello -Big Lake Hospital Board Room, Lower Level
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.
GUESTS: Arvid E. Elness, FAIA, BRW Elness Architects, Inc.
Allen Beck, Senior Annovations.
Presbyterian Homes of Minnesota.
William Jacobson, Project Architect
GUEST: Ronald S. Musich, Fay -Mar Metal Fabricators, Inc.
7:00 - 7:45 p.m. PRESENTATION OF A PRELIMINARY SENIOR HOUSING
DESIGN CONCEPT BY ELNESS ARCHITECT GROUP WITH
DISCUSSION TO FOLLOW. (Hospital Board, City
Council, and HRA members and Hospital and City
Administrative staff.)
8:00 p.m.
1. CALL TO ORDER HRA MEETING.
2. CONSIDERATION TO APPROVE THE JUNE 1, 1994 NRA MINUTES.
3. CONSIDERATION TO ADOPT A RESOLUTION MODIFYING THE
REDEVELOPMENT PLAN FOR REDEVELOPMENT PROJECT NO. 1, MODIFYING
THE TIF PLAN FOR TIF DISTRICT NOS. 1-1 THROUGH 1-16, AND THE
ADOPTION OF THE TIF PLAN FOR TIF DISTRICT NO. 1-17.
4. CONSIDERATION OF PROJECT UPDATES:
a) H Window Company
b) Polycest Mfg. Inc.
C) Royal Engineering and Mfg. Inc.
5. OTHER BUSINESS.
a) PRO billings.
b) Halmeo 8 Graven bi111ngo.
6. ADJOURNMENT.
MINUTES
HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, June 1, 1994 - 7:00 p.m.
City Hall
MEMBERS PRESENT: Chairperson Al Larson, Ben Smith, and Brad
Barger.
MEMBERS ABSENT: Everette Ellison and Tom St. Hilaire.
STAFF PRESENT: 011ie Koropchak.
STAFF ABSENT: Rick Wolfsteller and Jeff O'Neill.
1. CALL TO ORDER.
Chairperson Larson called the HRA meeting to order at 7:00
p.m.
2. CONSIDERATION TO APPROVE THE MAY 4, 1994 NRA MINUTES.
Ben Smith made a motion to approve the May 4, 1994 HRA
minutes. Seconded by Brad Barger and with no additions or
corrections, the minutes were approved as written.
3. CONSIDERATION TO APPROVE THE PRELIMINARY CONCEPT FOR USE OF
TIF ASSISTANCE FOR THE FA7-MAR METAL FABRICATOR PROJECT.
John McVay, Bill rnders, and Koropchak visited the company's
axlst;ag facility In Elaine on tray 2G. Jack Taly, Operations
Manager, gave a tour of the production area which is housed in
three small buildings. The company definitely operates under
a lack -of -space constraint as workers duck to avoid being
struck by metals during production and storage of raw and
finished materials are moved from inside to outside daily.
Some company accounts are Wagner and Grayco.
PRG sees the project as doable; however, bank commitment is
yet to be determined. Mr. Munich toured SMM facility.
First, Koropchak informed HRA members that Ron Musich, Fay -Mar
Metal Fabricators, requested the [IRA consider allocating
$90,000 of TIF surplus dollars to write-down the purchase
price of the Pfeffer building at 9830 Fallon Avenue Northeast.
Purchase price, $480,000. Public purpose to make use of an
under-utilized industrial building and to create jobs. Brad
Barger made a motion denying the use of TIF surplus dollaro
for the purchase of an existing building. Denial due to the
HRA's lack -of -ability to recover the surplus -lose and to avoid
setting a precedents. The motion was seconded by Ben Smith
and with no further discussion, the motion passed unanimouoly.
Page 1
HRA MINUTES
JUNE 1, 1994
If the HRA elected not to assist with the purchase of the
existing Pfeffer building, Mr. Munich plans to construct a
15,000 aq ft facility on 3 acres of the Monticello Commerce
Center property. The project is estimated to generate
approximately $19,500 in annual taxes and based on collection
of taxes over 9 years, the increment appears more than
sufficient to assist with the write-down of land. Proposed
upfront TIF assistance is $50,000. Projected purchase price
of the land is $75,000 for three acres. Seventeen immediate
full-time jobs and a projection of 8-13 additional jobs within
2 years.
The financial proposal prepared by PRG includes Bank,
$273,000; SBA, $222,000; Up -front TIP, $50,000; and equity,
$10,000 for a total $555,000 project.
The HRA agreed with the preliminary concept plan. Subject to
bank commitment and upon receipt of the executed Letter of
Intent, $5,000 cashier check, and copy of the purchase
agreement; Brad Barger made a motion to adopt a resolution
authorizing Public Resource Group, Inc. to begin preparation
for the creation of TIF District No. 1-17. The motion was
seconded by Ben Smith and with no further discussion, the
motion passed unanimously.
CONSIDERATION TO APPROVE THE EXECUTED CERTIFICATE OF
CCIf: LE:I017 FCR TILL• DEMr. ,LEC. 116I.7IL1 1,1141TEL FAIRTINERSFIIF .
Ben Smith made a motion to approve the executed Certificate of
Completion for the Demeules Family Limited Partnership. Brad
Barger seconded the motion and with no further discussion, the
motion passed unanimously. The certificate was executed by
HRA Chairperson Larson and Executive Director Noropchak on May
26, 1994, after the occupancy permit for the 52,000 sq ft
office/manufacturing facility had been issued by the City
Building Official. To avoid the need for an HRA subordination
agreement for the SBA real estate closing on June 1, the
certificate was executed and filed at the County Recorder's
Office prior to HRA approval.
CONSIDERATION OF HRA UPDATES:
a) In addition to the enclosed prospect updates, Koropchak
noted the enclosed proposal submitted to Royal
Engineering. The company was visited by the same IDC
group on May 26 and the company was found to be one
Monticello would be proud to have. TIF assistance was
proposed at $88,600 based on the construction of a 25,000
Page 2
HRA MINUTES
JUNE 1, 1994
sq ft Fabcon office/manufacturing facility. Immediate
employment 25 with the projection of another 25 within 2-
3 years. HRA members agreed to the outlined purchase
price of $14,000 per acre for the HRA lot. The company
officials had a lukewarm reading for Monticello because
of the potential loss of their trained or skilled workers
by relocating out so far.
b) HRA members were informed that at the upcoming June 6
Hospital Board meeting, a date would be set for the four
congregrate and assisted -living presentations. The
presentation meeting will be a joint meeting between the
Hospital Board, HRA, and City Council.
C) HRA members elected to table any discussion for the need
to establish a TIP level -of -assistance guide or range.
The item was tabled in order to allow for full -membership
attendance and discussion.
6. CONSIDERATION OF HRA FOLLOW-UPS.
Follow-ups were accepted without questions.
7. OTHER BUSINESS.
Chairperson Larson informed Koropchak he would be out-of-town
for a week in mid-June.
S. ADJOURNMENT.
The HRA meeting adjourned at 7:45 p.m.
oU-1i KnVI
cutive
011ie Noropchak, HRA Director
Page 3
HRA AGENDA
JULY 6, 1994
Consideration to adopt a resolution modifvina the
Redevelopment Plan for Redevelooment Proiect No. 1, modifvinq
the TIF Plan for TIF District Nos. 1-1 through 1-16, and the
adoption of the TIF Plan for TIF District No. 1-17.
Reference and Background:
At the June HRA meeting, members approved the preliminary
concept of the Far -Mar project. Additionally and subject to
receipt of an executed Preliminary Agreement, $5,000 cashier
check, copy of the executed land purchase agreement, and
preliminary bank commitment; the HRA approved a resolution
authorizing Public Resource Group, Inc. (PRG) to begin
preparation of TIF District 1-17. PRG received authorization
on June 21.
The district being created for Fay -Mar Metal Fabricators, Inc.
is an eleven -year Economic District. The approximate 15,000
sq ft manufacturing/office facility located to the east of
Suburban Machine & Manufacturing, Inc. consists of three acres
of land, has a minimum estimated market value of $400,000, and
will generate an estimated annual tax of $19,000. Because of
the need to prepare the agenda early, copies of the TIF No. I-
17 Plan and Budget and resolution for adoption are not
available; however, they will be available at the meeting.
Enclosed is a copy of the anticipated budget. The upfront
$50,000 TIF assistance is for land write-down, the purchase
price for the three acres is $64,000.
Job creation is 17 immediate and the addition of 8-13 within
2-3 years.
A copy of the TIF Plan for TIF District No. 1-17 .in planned
for distribution to the county, school, and hospital districto
on July 5. The City Council will call for a public hearing
date of Auguat 8, 1994, meeting the Statutory 30 -day notice
requirement for comment. Holmeo & Graven has been authorized
to prepare the Private Redevelopment Contract, the first draft
to be distributed on July 11. Bank financing its being
secured, the SBA application wao oubmitted to the Minneuota
Business Finance Office on June 22, and building and site
plana are being drawn by general contractor, Morgan Homeo.
Ron Munich, president of Fay- Mar Metal Fabricatoro, Inc., will
he present at the HRA meeting for yueatlonu.
Pago 1
HRA AGENDA
i JULY 6, 1994
Upon reviewing the TIF Plan and Budget and determining Fay -Mar
project compliance with TIF Policies, the HRA should consider
the following alternatives.
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
1-16, and the adoption of the TIF Plan for TIF District
No. 1-17.
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 meets
the Monticello TIF Policies, creates jobs within the state,
Increases the tax base of the state, and the project would not
occur without the assistance of TIF (did not purchase existing
facility because of no TIF assistance.)
l
D. Supportinq Data:
A copy of the TIF Policies, Fay -Mar time schedule, cashier's
check, projected annual taxes, and uses and oourceo of
funding. Available for your review at the meeting is purchase
agreement and the preliminary agreement.
Page 2
SCQSING AND RE'DVrEL0F%L)T ACTSCRITY
City o: Monticello
TAX INCILM4ENT FINANCING POLICY
Program Pu. -pose: The Monticello Sousing and Redevelopment
Authoritv will utilise Tax Increment Financing to support the
community's long -teres economic and housing goals.
Policy Considerations: The SRA will analyze and evaluate Tax
Increment Financing proposals based upon the following policy
considerations. Each project shall be measured against these
considerations and the project's value shall be determined, based
upon meeting these considerations.
(11 The project shall be consistent with the City's
Comprehensive Plan.
:2) The project shall demonstrate long-term economic and/or
housing benefits to the community.
(3) The project shall create and/or retain employment for
Monticello residents.
The project shall increase moderate priced housing
options for area residents. . .
I�N The project shall facilitate the redevelopment or
elimination of "substandard" or •blighted" areas as
determined by the SRA.
(61 The project shall facilitate the •clean-up" of
environmentally unsound property.
(7) The project shall provide additional public funding
for public improvements including utilities and/or
park development which would not otherr+ise be available.
(8) The project shall be deemed to promote additional
desired "spin-off" development.
POLICY GOID=MZS
(1) Tax Increment Financing will be considered for use in
economic development, redevelopment and specialised
housing projects. The standard level of assistance for
projects shall be as follows:
FAY -MAR METAL FABRICATORS, INC.
TIF, PLAN REVIEW, AND PLAT SCHEDULE GUIDE
1994
June 1
HRA adopted resolution authorizing PRG to
begin preparation of TIF District No. 1-17
subject to receipt of executed Letter of
Intent, 85,000 cashier check, copy of purchase
agreement, and preliminary bank commitment.
June 21
Authorize PRG to prepare TIP District No. 1-
17.
June 21
Authorize Holmes 6 Graven to prepare Private
Redevelopment Contract.
July 5
PRG distribute TIF Plan to School, County, and
Hospital.
July 6
HRA adopt resolution for modification of
Redevelopment Project No. 1 and establishment
of TIF District No. 1-17 and request the City
Council to call a public hearing.
July 7
Building and site plan review by city staff,
OSM, and developer.
July 11
Distribute first draft of the Private
Redevelopment Contract.
July Is
City must have receipt of Developer's Plat
application and fee.
July 1s 6 25
Public Hearing Notice for approval of Plat -
Planning Commission.
July 18 6 25
Public Hearing Notice for acquisition and
disposition of raw lands - HRA.
July 21
Building and site plan review by city staff,
OSM, and developer.
July 25
City Council cello for a public hearing on TIF
adoption.
July 25 8 Aug 1
Public Hearing Notice for the modification of
Redevelopment Project No. 1 and establishment
of TIF District No. 1-17.
Auguot 2
Public Hearing and approval of preliminary and
final Plat - Planning Commission.
August 3
Public Hearing and adoption of resolution for
acquisition and disposition of raw lands -
HRA.
Approve Private Redevelopment Contract as
prepared by Holmes & Graven.
August d
Approval of building plans by City Building
Official and approval of site plans by City
Engineer.
August 5
Execute Private Redevelopment Contract between
Ron Musich and the HRA.
August B
City Council approval final Plat.
Public Hearing and adopt resolution for
modification of Redevelopment Project No. 1
and establishment of TIF District No. 1-17.
August 9
File Plat.
August Is
Convey property if terms and conditions of
Private Redevelopment Contract are satisfied
and evidence of construction financing as
financed by redeveloper.
August 19
Tentative Groundbreaking.
September 1
Tentative Groundbreadking if terms and
conditions of Private Redevelopment Contract
are satisfied and if SBA authorization is
received.
.0...... •
BUILDING PLANS -
CITY: TWO COPIES BY CERTIFIED ARCHITECH
AND/OR ENGINEER.
SITE PLANS -
CITY: THREE COPIES INCLUDES GRADING,
DRAINAGE, HARD -SURFACE CURBING AND PARKING,
LANDSCAPING, SCREENING, AND TRAFFIC FLOW.
CITY ENGINEER: ONE COPY
BRET WEISS
ORR-SCHELEN-14AYERON & ASSOC.IATES
300 PARK PLACE CENTER
5775 WAYZATA BLVD
MINNEAPOLIS, MN 55038-1228
812-595-5705
PRIVATE REDEVELOPMENT CONTRACT: RRA ATTORNEY
STEVE BUBUL
HOLMES & GRAVEN
470 PILLSBURY CENTER
MINNEAPOLIS, MN 55402
612-337-9228
REDEVELOPER'S ATTORNEY - SELF
CAR PHONE 750-9996
OR 786-7246.
REDEVELOPER'S GENERAL CONTRACTOR: RANDY MORGAN
MORGAN HOMES
COTTEGE GROVE, MN
612-458-4040
W
6247,.
'-7 4,
R'S C
CASHIER'S HECK Rrat BW* Ug=lp..0 554W
-
RONALD MUSICH ..�Sww won "wm mTTm a momom op Tmg MTN DAIPIUNF a,, 1994
PAY TO IIIE MONTICELLO MA
ORDElt OF $5, (100. (11)
.92.A—
NOTICE TOCU9TOWER9
NT,W P. M
-owl"ORtZEDS"tURE
,PM06247ol 1209&0000221:&&021.009&758tF
RON MUSICR
REQUEST FOR ESTIMATED TAXES
ASSUMPTIONS:
15,000 sq ft precast facility
13,000 sq ft manufacturing and 2,000 sq ft office.
3 acres
17 Full-time jobs retained, 8-13 additional full-time within 2
years.
ESTIMATED TAXES
13,000 sq ft R $23.00 per sq ft a $299,000
2,000 sq ft R $32.50 per sq ft a 65,000
2 acres or 67,120 eq ft developed land X $.40 per sq ft 34,848
1 acre or 43,560 eq ft X S.25 per sq ft 10,890
Total estimated market value for building and land $409,738
EMV o $400,000
$100,000 $309,738
.0300 10460
$ 3,000 $ 14,248
New Capacity Value (NCV) 817,248
Estimated 194 Tax Rate 1.12873
ESTIMATED TAXES 819,468
ESTIMATED ANNUAL TIP A39ISTANCE $9,500
OVER 9 YEARS APPROXIMATELY $85,800.
ESTIMATED TIF BUDGET
Eetimated annual Taxes, $19,468 times 9 years
Estimated aawwal BACA, 30% of taxes e
Estimated annual TIB assistance, $9,500
TIF range $42,000-$63,000
Proposed total direct upfront TIF assistance
$75,000 Bond, 9 yrs ® 7.5% interest r,
Proposed Budget:
Land $ 50,000
Public Improvements (25% of TI) 43,804
Administration/Profession Fees 15,000
Capitalized Interest 11,250
Bond Discount 2.000
TOTAL $122,054
Interest on Bond 6 30,820
ESTIMATED TOTAL OF PROJECT $152,874
$175,215
$ 52,565
$ 85,500
$ 50,000
$105,820
0
MWY-25-194 WED 10:30 ID:BDS INC. TEL N0: 786-9034 0%6 P02
FAY -MAR TUBE FABRICATORS
USES OF FUNDS
Lad - 3 actor S 73,000
Uldfog - 13,000 aquae Loos as S23/SF 345,ODD
Egwom w 100,OW
Soft cowomdosonq 3,5,
TOTAL USES OF FUNDS 6333,ODD
SOURCES OF FUNDS
Bank (ARM, 20 yeah, 1gt) 5273,000
SBA 304 (7.5%. 20 yeah, tad) 222,000
Equity
TIP 30,000
TOTAL SOURCES OF FUNDS $533,000
Rank (Avg. 99f)
SRA SO4
TOTAL MONTHLY
TOTAL ANNUAL
COST/SQUARE FOOT
Uadfg egvipmmt)
DEBT SERVICE
$2,436
_Lisa
54,244
$50,928
53.40/Sgu m Foos
SECTION XVm
TAX INCREMENT FINANCING PLAN FOR
TAX INCREMENT FINANCING DISTRICT NO. 1-17
Subsection 18.1. Statement of Ohiectives. See Subsection 1.4 of the
Redevelopment Plan.
Subsection 18.2. The Redevelopment Plan. See Section I, Subsections 1.l
through 1.20.
Subsection 18.3. Description of the Proiect. The project, located within Tax
Increment Financing District No. 1-17, consists of the construction of a 15,000 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 15 people.
It is anticipated that 15 additional full-time positions will be created as a result of this
project.
Subsection 18.4. Parcels to be Included in Tax increment Financing District
No. 1-17. The following property is located in the City of Monticello, County of
Wright, State of Minnesota.
LeW ccription
Part of PID Number: 155-11-000101
Subsection 18.5. Parcels in Acq isi� tion. The Authority intends to acquire the
property listed in Subsection 10.4, which property is located within Tax Increment
Financing District No. 1-17.
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.
Subsection 18.6. Develg9ment Activity in Tax Increment Financing District
No. 1-17 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. 1.17, a
Development and Assessment Agreement will be executed between the Housing and
Redevelopment Authority of Monticello and Ronald S. Musich.
Subsection 18.7. Other pecific Developm nt Ex=ed to Occur within
Redevelapment Proeect No. 1.
(As specific development is expected to occur, it will be inserted into this Subsection.)
Subsection 18.8. Estimated Public Improvement Costs and SVM=ive Data,
See Subsection 1. 10 of the Redevelopment Plan for estimated costs associated with
Redevelopment Project No. 1.
Subsection 18.9. Sources of Revenue. Land acquisition costs, and other costs
outlined in Subsection 1.10 of the Redevelopment Plan will be financed through the
annual collection of tax increments.
Subsection 18.10. Original Tax Capacity. Pursuant to Section 469.187, Subd.
1, of the Tax Increment Financing Act, the original tax capacity value for Tax
Increment Financing District No. 1-17 is estimated to be $46, based on the tax
capacity value of all taxable real property within Tax Increment Financing District
No. 1-17. Pursuant to Section 469.187, Subds. 1 and 4, of the Tax Increment
Financing 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. 1-17, reduction or enlargement of Tax Increment Financing
District No. 1-17 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. 1-17 declines below the original tax capacity value, no tax capacity value
will be captured and no tax increment will be payable to the Authority.
XVIII -2
Subsection I B. 11. Estimated Captured Tax City Value. Pursuant to Section
469.185, Subd. 1, and Section 469.187, Subd. 2, of the Tax Increment Financing
Act, the estimated captured tax capacity value in Tax Increment Financing District
No. 1-17 at final completion will approximate $17,207. This estimated annual
captured capacity value is determined in the following manner:
Estimated Tax Capacity Value at Final Completion $17,161
Original Tax Capacity
Captured Tax Capacity Value
$17,207
Subsection 18.12. Tyne of Tax Increment Financing District. Tax Increment
Financing District No. 1-17, is pursuant to Section 469.184, 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 18. 13. Duration of Tax Increment Financing District No. 1.17.
Pursuant to Section 469.186, Subd. I, of the Tax Increment Financing Act, the
duration of Tax Increment Financing District No. 1-17 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.
XVIII -3
Subsection 18. 14. Badmed Development Analysis. Pursuant to
Minnesota Statutes, Section 469.185, Subd. 1(7), specific findings and analysis have
been completed relating to the proposed development in Tax Increment Financing
District No. 1-17. Additional relevant documentation relating to the findings and
analysis will be on file and available for review in the City Administrator's office.
Subsection 18.15. Estimated Impact on Other Taxing Jurisdictions.
Test No. 1: The estimated impact on other taxing jurisdictions assumes
construction would have occurred without the creation of Tax Increment
Financing District No. 1-17. 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. 1-17 would be as follows if Test No. I (the
'but for' test) was not met:
IMPACT ON TAX BASE
XVIII -4
Original Net
Future Net
Captured Net
Tax Base
Tax Capacity
Tax Capacity
Tax Capacity
District %
Entity
Payable 1994
Payable 1995
Payable 1995
Payable 1995
of Entity
Wright County
$48,638,744
$ 46
$17,161
517,207
.035%
City of Monticello
$15,583,604
$ 46
$17,161
$17,207
.110%
I.S.D. No. 982
$18,344,524
$ 46
$17,161
$17,207
.094%
Hospital District
$23,974,025
$ 46
$17,161
517,207
.072% J
XVIII -4
Entity
Wright County
City of Monticello
I.S.D. No. 882
Hospital District
TOTALS
IMPACT ON TAX CAPACITY
MILL RATES
Gross Tax Rate !994
31.965
18.530
60.634
2.744
112.873
Potential Taxes
$ 5,500
3,016
10,433
_472
$19,421
Subsection 18.16. Cash Flow Assumptions and Analysis.
A. Future Tax Capacity. The estimated fume tax opacity of Tax Increment
Financing District No. 1-17 at final completion as determined by the City
Assessor is $17,161, payable 1996.
B. $elected Timing. The payment of the fust full tax increment from Tax
Increment Financing District No. 1-17 will be received by the Authority in
1996.
C. Original Tax Capacity. The County Assessor's records show the original tax
capacity of Tax Increment Financing District No. 1-17 to be $46 for taxes in
1994 and payable in 1995.
D. Cross 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 atatic gross tax capacity rate and a
valuation increased by zero percent (0%) compounded annually.
F. Capital Expenditures. Capital expenditures aro 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 arid tax increment revenue.
Subsection 18.17. Estimated Amount of Bonded Indebtedness. It is anticipated
that $135,000 of bonded indebtedness will be incurred with respect to this portion of
the Redevelopment project.
XVIII -5
1
Subsection 18.18. Tax Increment Fnancina Account for Tax Increment
Financing District No. 1-17. The tax increment received with respect to Tax
IncremFinancing District No. 1-17 will be submitted by the Authority to the City
and segregated by the Authority in a special account 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 18.19. Modification of Tax Increment FenancinaDistrict No_ 1-17.
As of August 8. 1994, there have been no modifications made to Tax Increment
Financing District No. 1-17.
XVIII -6
(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.
Tax Increment Financing District No. 1.17
(As adopted August 8, 1994)
Land acquisition.
Subsection 1.10. Estimated Public Costs and SuyRmtive Dam. The estimated costs
of the public improvements to be made within Redevelopment Project No. 1 and
financed by tax increments derived primarily from Tax Increment Financing districts
within Redevelopment Project No. 1 are as follows:
I-26
listrict No. 1-16
(As adopted March 14, 1994)
Land Acquisition
SuLtotal
555,000
Administration
7,500
Professional Services
2=
Subtotal
570,000
Capitalized Interest
8,365
Discount
LM
TOTAL
$80,000
Tax Increment Financing District No_ 1-17
(As adopted August 8, 1994)
Land Acquisition $30,000.00
Public improvements 40,000.00
Subtotal $90,000.11(1
Contingency 7,500.00
Administration 8,000.00
Professional Services 10,000,QQ
Subtotal $113,500.00
Capitalized Interest 16,632.00
Discount 2.868.00
TOTAL $135,000.00
(As adopted November, 1982)
Subsection 1.11. land -Use. All new and/or existing development on land
identified on Exhibits I -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. Indygujgl--All permitted, accessory and conditional uses as specified in
Chapters 15 and 16, Monticello Zoning Ordinance, relating to 1-1 (Light
Industry) and 1-2 (Heavy Industry) zones. Planned Unit Developments,
where applicable, will be considered.
I-37
(As adopted August 10, 1992)
3 acres of land looted 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
P
(As adopted March 14, 1994)
Lot 3, Block 3, Oakwood Industrial Park.
PID Number: 155-018-003030
(As adopted August 8, 1994)
Part of PID Number: 155.114000101
Subsection 1.9. Public Improvements and Facilities Within Redevelopment
EMiect No. 1. Publicly financed improvements within Redevelopment Project No.
1 to be financed include:
I-21
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 MON77CELLO
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 1-16 AND THE APPROVAL AND
ADOPTION OF THE TAX INCREMENT FINANCING
PLAN FOR TAX INCREMENT FINANCING DISTRICT NO.
1-17, ALL LOCATED WITHIN REDEVELOPMENT PROJECT
NO. 1.
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. 1,
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 1-16 and establish Tax Increment Financing District
No. 1-17 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 1-16
and Tax Increment Financing Plan (the "Tax Increment Financing Plan") for
Tax Increment Financing District No. 1-17 (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. I- 1 through 1-16 and the establishment of Tax Increment Financing
District No. 1-17 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 1-16
and to establish Tax Increment Financing District No. 1-17 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 for
Redevelopment Prniect 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.
• y•• • • .1 1 -111 1.•Itl l' •.1 •
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 1-16 and Tax Increment Financing Plan for Tax
Increment Financing District No. 1-17 by the Council of the City, the Tax
Increment Financing Plans for Tax Increment Financing Districts Nos. 1-1
through 1-17 are hereby approved by the Commissioners of the Authority.
Section 4. Approval of the Re=ctive 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 1-17.
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: July 6. IOU
Chair
Attest:
011ie Koropchak, Executive Director
(SEAL)
-3-
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I PUBLIC RESOURCE
GROUP, INC.
Marketing, Development & Finance Specialists
June 29, 1994
Ms. 011ie Koropchak
City of Monticello
250 Fast Broadway
P.O. Box 1147
Monticello, MN 55362
STATEMENT
Consulting Services --April l6, 1994 through June 16, 1994
4-29-94
LPK—Revise contract 2.25
5-04-94
LPK—Memo, Follow-up with 011ie regarding HRA meeting 1.25
5.06.94
LPK—Follow-up with 011ie regarding Faymar, H -Window, HRA meeting .50
5-10-94
LPK—H-Window follow-up with 011ie regarding DTED terms .25
LPK—Follow-up with 011ie regarding Standard Iron closing, follow-up
with Brian Heck .25
5-17-94
LPK—Steve Lemme regarding revised ERG, preparation 1.25
5.18-94
LPK—Memo and structure for Brad Simenson 1.50
5-26-94
LPK—Ron Muich, project structure regarding Faymar 1.75
LPK—Proposal for Royal Engineering 2.00
4205 lancatter Lane North* Sure 1100 0 Minnenpo4 Minnesota 55441 0 (612) 55117979 0 (612) 5549221 Fax
Ms. 011ie Koropchak
Page 2
6-07-94
PGW—Revise finance stricture, fax to 011ie
.25
PGW—Revise H -Window application
.50
6-08-94
PGW—Revise H -Window package
3.00
NON CHARGEABLE MARKETING HOURS:
418-94
LPK—Tappers finance structure, follow-up with 011ie and Deb Gustafson
1.23
4-27-94
LPK—Tappers, Inc. follow-up
.50
5-10-94
P
LPK—Faymar Fabricators, follow-up with 011ie
.50
3-11-94
LPK—011ie, Ron Musich, Faymar, preparation
2.23
5.12-94
LPK—TIF and LGA estimate for prospect building - 150,000 square fat
1.00
5-27-94
LPK—Royal Engineering proposal
im
TOTAL NON-CHARGABLE HOURS
6.50
Net Chargeable Hours ® $75/Hour (PGW)
$281.25
Net Chargeable Hours ® $90/Hour (LPK)
S990,QQ
TOTAL AMOUNT DUE
CURREOVER 30 OVER b0 OVER
$1,271.25
TERMS: NET DUE UPON RECEIPT, 1.33% PER MONTH SERVICE CHARGE
ON
PAST DUE ACCOUNTS