Loading...
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- HOLMES & GRAVEN Ctt.rTE.en M f i%b— C -.r. mi.__.IW %4— LSM To"h~ 111/3.r4 I V ii.vt`110419ntt -1 ...'a• �h:... . -is - PCs-aq. ! ,„ars Y114M p"" d IMM .t =� Do% SIE\• �' a 11• ft .^1�*• 1 t; - ,„ars Y114M p"" d IMM .t =� Do% HOLMES &CRAVEN CHARTERED 47f lRYti. C. . Ml w im. MI 754ft T.4�L.r 111/D7-qM 71 ry . ... a. r —:;s: Si-- _. -- - ;! z0 JS - Ph1^f �:_ �-• _ ., a .. 3 0 4P !tot-@- . .. l0..1 -i. .. .. Yho►:. . fs «;. Pay a�a • f. j I o«w0. „row psruhy at ru11Ms ,c a � "• m caifO � iMt s d CMwwi HOLMES & CRAVEN CHAFTEIIED 111 till.bv. C-1. MIrlIY. MIMMWM T.My' 111/1RJ.70 .ia Imo! � v•%". d• _ - - _ h.i?♦ 1.. .pis "�• � 'Aoeo.l, tH 1 didsn. wdr po a" d W �Iftl Mn do m do"W" Y I �r at no n0 pan I i 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