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HRA Agenda 08-03-1994AGENDA MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY Wednesday, August 3, 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 JULY 6, 1994 HRA MINUTES. 3. PUBLIC HEARING FOR AND CONSIDERATION TO ADOPT A RESOLUTION FOR THE ACQUISITION AND DISPOSITION OF RAW LANDS RELATING TO TIF DISTRICT NO. 1-17. 4. CONSIDERATION TO ACCEPT THE PRIVATE REDEVELOPMENT CONTRACT BETWEEN THE HRA AND RONALD S. MUSICH AS PREPARED BY HOLMES & GRAVEN AND TO AUTHORIZE EXECUTION OF SAID DOCUMENT. 6. CONSIDERATION TO DISCUSS THE PRELIMINARY CONCEPT AND USE OF TIF (SOIL CONDITION DISTRICT) TO ASSIST WITH THE SOIL CORRECTION EXPENDITURES ASSOCIATED WITH THE DEVELOPMENT OF A PROPOSED RESIDENTIAL PROJECT. 6. CONSIDERATION TO APPOINT TWO HRA MEMBERS TO THE SENIOR - CONGREGATE HOUSING COMMITTEE AND A PROJECT UPDATE. 7. CONSIDERATION OF PROJECT UPDATES: a) Standard Iron & Wireworks, Inc. b) Remmele Engineering, Inc. c) Polycast Mfg. Inc. d► H -Window Company e) Other. S. OTHER BUSINESS. a) PRG billing. b) Holmes & Graven billing c) Preliminary 1998 City Budget requests. d) Other. 9. ADJOURNMENT. MINUTES MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY Wednesday, July 6, 1994 - 7:00 p.m. Monticello -Big. Lake Hospital Board Room, Lower Level MEMBERS PRESENT: Chairperson Al Larson, Vice Chairperson 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. GUESTS: BRW Elness Architects, Inc. Team. Hospital Board and City Council members. Ron Munich, Fay -Mar Metal Fabricators, Inc. 1. CALL TO ORDER. Chairperson Larson called the HRA meeting to order at 7:05 p.m. Introductions were made and guests were welcomed. PRESENTATION - Team, members from BRW,Elness Architects, Inc. presented a preliminary design for a 40 -unit congregate senior housing facility. Utilizing a shared driveway with the Monticello Clinic, the three-story apartment structure with underground parking would consist of 27 one -bedroom and 13 two-bedroom unite of approximately 644 sq ft and 992 eq ft, respectively. Cost per unit estimated at 846,000 to 850,000 with rents beginning at approximately 8480 per month for 600 eq ft without garage. Rent range dependent upon selected financing method. Mayor Fyle and Councilmomber Herbst endorsed the need for a community congregate senior -housing project; however, did not endorse City ownership nor the proposed site (east of clinic) without further reaearch. After further discussion, direction was for each entity (Hospital Board, City Council and HRA) to appoint 2 members to servo on this committee. The committee will continue research for the potential establishment of a 801(c)3 non-profit organisation, visit projects completed by the three devolopers, and select a developer. 2. CONSIDERATION TO APPROVF. THE JUNR A. 1994 HRA MINUTES, Bon Smith made a motion to approve the June 1, 1994 HRA minutes. Brad Barger seconded the motion and with no corrections or additiono, the minuted were approved as written. Pago 1 HRA MINUTES JULY 6, 1994 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. Ron Musich, owner of Fay -Mar, displayed the preliminary plans for the proposed 13,G40 sq ft manufacturing/office facility and 2,000 sq ft mezzanine as prepared by Architect Network, Inc. of Stillwater. The company will employ 17 full-time individuals with average wages of $9.50 ph. Projections include another 6-8 employees in the first year. Chairperson Larson requested Mr. Musich encourage his employees to live in Monticello and support the community. Brad Barger made a motion to adopt the 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 Districts Nos. 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. Ben Smith seconded the motion and with no further discussion, the motion passed unanimously. HRA members authorized the £50,000 upfront TIF assistance be transferred from the TIF Surplus Fund. Also, the commission requested Rick Wolfsteller give an update of the HRA loans including remaining balances and projected expenses and an update of the TIF Surplus balance. CONSIDERATION OF PROSPECT UPDATES: a) It -Window Company - Anticipates an open house in late August. $50,000 State Grant applicatiun completion and award expected soon. b) Polycast Mfg, Inc. - Bank/SBA financing closed, land title conveyed, TIF ausistance awarded, and construction uridurway. Tl,e company elects to cumbilru the groundbreaking and open house reception because of a buoy schedule. C) Royal Engineering and Mfg, Inc. - The company officials have not made a site location decision. Page 2 NRA MINUTES JULY 6, 1994 5. OTHER BUSINESS: a) PRG billings - Koropchak noted the two-month statement which included billings for Fay -Mar proposal and H- Window/State application. Members denied payment until billing is reviewed with PRG. b) Holmes & Graven billings - HRA authorized payment. C) HRA members briefly discussed the senior housing project and supported a community involvement concept. Chairperson Larson volunteered his interest as one of the two HRA representatives for the senior housing committee. HRA representation will be formally appointed at the August 3 HRA meeting. 6. ADJOURNMENT. The HRA meeting adjourned at 9:25 p.m. © JIY�q d\ CJ�aJ 011ie Y.oropchak, HRA xecutive Director Page 3 HRA AGENDA AUGUST 3, 1994 L 3. Public hearino and consideration to adopt a resolution for the acquisition and disposition of raw lands relating to TIF District No. 1-17. A. Reference and background. Chairperson Larson is requested to open the public hearing for comments or opposition. The enclosed public hearing notice appeared in the Monticello Times on July 21 and 28, 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 the said raw lands from Monticello Industrial, Inc. through an assignment of interest to the purchase agreement and dispose of the raw land via a quit claim deed to Ronald S. Musich. The said raw lands are described as the TIF District No. 1-17 boundaries within the TIF Plan and the Private Redevelopment Contract. For purposes of redevelopment, the project will create 17 new full-time jobs, increase the annual tax revenue by approximately $19,000, and create other spin-off benefits to the state and 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 Ar_tion: 1. A motion to adopt the resolution authorizing the acquisition and disposition of raw lands relating to TIF District No. 1-17. 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, utaff recommFndo Alternative Action No. 1. D. Supporting Data: Copy of the public hearing notice and the resolution for adoption. Page 1 P��a Notices ,ww===ff� CmofMONTICE110-Couff"w Sulm (wOFYrg00R80TA of " a NOTICEat Mordmafm.. Cw" HERESY M" em %"*^ liitt.O of I U am " Wd a== Wodmud7, A -g 7. 1001, at oppaxbnu* 7:00 m., sift CIM Mag. MonOaao, Wnud9. �ra9�ybpp m m9 p'apos90 mmMlar arra s.pal11on al pqw!, as au/rnnO In"TW Yi WWO Fi1nC6q Plan for Tam I tav w 1 fh/r6q C461C1 No. 1-17. 9Tqp0oscoAsMw and subunwo Otaposmon wltwn Tax twemmd 1.176 W/dra: Tins (rn� aaa located In 11s MLr�dW D MMI I I d to !bM Hall 01 Badlorl 13, Tbrrmldp 121. Ranpa 211. AWlldh Bubd. 01, Ma91CNo. ^rq,n Mtr9*-"L PID/ bR-011-000101 -OsaMRAEmafkdMsOs9aor ' n 1 ) D STATE OF MODOWTA COUNN OF 1n Rs: 9900 of ANTHONY NREMLER TO ALL OnEREM VER n Is 0rd9rad No Moom 1[ hq WW W 1Wd M ft 1Do, 6u61mr19m p pw"., Rm a R appo6mlprd d 9090 I Perk TrotLwM Il Road mple P On above•nrrra d�i- ba f89d wtth 11n Caul d pc be npDokdad to adl, ll, b landd s mol and praaanl IMf0rerand d msame 9 r Mon110.s Daae ,Mllr 10. 10ae Robarl M. Mapp �� THDRNTON. W(Kk REIV. . 1O1 ABlOsdw9v,P.01810 gig , (km 21 i20, IQ" AND MDR NOTICE 19 HEREBY Dh o1110s of the CIM Ckwk a" ooselsd ad rMd rd s9M cmc W eor IM fuNsnbq d a14c 610 apPr01aaa10 puno8v: 6'aas 80ds 2,1180 LF. of 12' m LF.Pop Rap I= V. Rum ANa11s0 9N: 2,6811 LP. of 12 00 LF. PRap I,a80 LF. Rum The plea must be WA M, CoapMq9 PUM.r28 with CE"OW d al Parvo • and mar a Gem ]00 PL DhcaP.wL 8770 TMZ bud wd W i gaao a000ngwM W a Call d9P f�M d Madle9b fa M Pn• MI to *MO O11sbMa r old %~ ftNo oft wpMe baro The CIM CO Amt 11[aae fmgvv Oatsm AOF 11, 1001 :A4 21, 1 W1) HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO, MINNESOTA, AUTHORIZING THE ACQUISITION AND DISPOSITION OF THE RAW LANDS RELATING TO TIF DISTRICT NO. 1-17 RESOLUTION NO. WHEREAS, both the Housing and Redevelopment Authority in and for the City of Monticello, Minnesota, (the "Authority") and Ronald S. Musich, a single person, (the "Redeveloper") shall agree to and carry out the terms of the Contract for Private Redevelopment by and between the Housing and Redevelopment Authority in and for the City of Monticello and Ronald S. Musich and all the convenants therein; and WHEREAS, the Housing and Redevelopment Authority in and for the City of Monticello has adopted the Tart Increment Finance Plan relating to Tax Increment Finance District No. 1-17; and WHEREAS, the Housing and Redevelopment Authority in and for the City of Monticello held a public hearing and heard no comments or opposition on the acquisition and disposition of the raw lands described as: Three (3) acres located in the Northwest Quarter (NW 1/4) of the North Half (N 1/2) of Section 13, Township 121, Range 28, Auditor's Subd. al, City of Monticello, County of Wright, Minnesota. WHEREAS, the Planning Commission in and for the City of Monticello held a Public Hearing and approved the preliminary plat relating to the above raw lands thereafter described as: Lot 1, Block 1, Monticello Commerce Center Second Addition, City of Monticello, Wright County, Minnesota. WHEREAS, the Council in and for the City of Monticello shall hold a Public Hearing on August 8, 1994, and consider approving the preliminary and final plat relating to the above described raw lands: and WHEREAS, the Council in 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. 1-17 and the approval and adoption of the Tax Increment Finance Plan on August S. 1994; and WHEREAS, both the Housing and Redevelopment Authority in and for the City of Monticello and Ronald S. Musich shall agree to an amount up to, but not -to -exceed, Fifty Thousand Dollars and No Page I RRA RESOLUTION NO. AUGUST 3, 1996 Cents ($50,000) as the level of Tax Increment Finance assistance for the acquisition and disposition of said described raw lands. NOW, THEREFORE, BE IT RESOLVED by the governing body of the Housing and Redevelopment Authority in and for the City of Monticello having held a public hearing finds: 1. It will discourage commerce, industry, or manufacturing from moving their operations to another state; and 2. It will result in increased employment in the state; and 3. It will result in preservation and enhancement of the tax base of the state. 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 Ronald S. Musich. Adopted by the Housing and Redevelopment Authority in and for the City of Monticello, Minnesota, this 3rd day of August 1996. SEAL ATTEST: NRA Executive Director Page 2 RRA Chairperson HRA AGENDA AUGUST 3, 1994 4. Consideration to accept the Private Redevelopment Contract between the HRA and Ronald S. Musich as prepared by Holmes & Graven and to authorize execution of said document. A. Reference and Background: The Private Redevelopment Contract outlines the terms and conditions associated with the use of TIF assistance through established TIF District No. 1-17. The HRA agrees to pay $80,000 (land write-down) and convey title of the three acres upon satisfaction of the terms and conditions set forth in enclosed contract excerpt. Construction of minimum improvements to begin no later than October 20, 1994 and completed by December 31, 1994. Site improvements to be completed one year from date the building permit is issued. Compliance of federal, state, and local ordinances and regulations must occur during construction and thoughout the life of the 11 -year TIF district. The minimum estimated market value of the proposed land and building is agreed upon at $400,000. The County Auditor has executed the Assessment Agreement. Construction financing has received SBA preliminary approval by the Minnesota Business Finance Board and Marquette Bank - �_ Monticello continues its process as lender. Final SBA/lender approval anticipated in October. City staff and its engineer have reviewed the preliminary building plans and are scheduled for a final review of building and site plans on August 4. Final plat and TIF District No. 1-17 approvals appear on the City Council agenda of August 8, 1994. Adoption of the TIF resolution is subjoct to execution of the Private Redevelopment Contract between the HRA and Ron Musich. B. Alternative Actiono: 1. A motlon to accept the Private Redevelopment Contract between the HRA and Ronald S. Munich ao prepared by Holmoo & Graven and authorizo executiml of said document. 2. A motion to deny acceptance of the Private Redevelopment Contract. 3. A motion to table any action. C. Staff Recommendation: Staff recommondo Alternative No. 1. Page 1 HRA AGENDA AUGUST 3, 1994 Supportin4 Data: Excerpts from the contract. A copy of the full document will be available for review at the HRA meeting. Pape 2 ARTICLE III Acquisition and Convevance of Ptooerty: Public Improvements Section 3.1. Acquisition and Convevance of the Prooertv. As of the date of this Agreement, the Redeveloper has entered a purchase agreement (the "Purchase Agreement") to acquire the Redevelopment Property from Monticello Industrial Park, Inc., a Minnesota corporation. In order to assist the Redeveloper 1n making development of the Minimum 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 3.2. 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 Redeveloper to subject to satisfaction of the following terms and conditions: (1) the Redeveloper having deposited with the Authority (or with the Escrow Agent as defined in the Purchase Agreement) the amount of $84,000, which amount represents the cost to the Authority of acquiring the Redevelopment Property; (11) the Redeveloper having submitted to the Authority evidence of financing as required under Section 7.1; (W) the Redeveloper having submitted and the Authority having approved Construction Plans for the Minimum Improvements; (iv) the Authority having reviewed and approved title to the Redevelopment Property as set forth In Section 3.4; and (v) the Redeveloper having delivered the Letter of Credit as required under Section 4.8; (vi) a final plat of the Redevelopment Property having been approved by all re;evant entitles and recorded; (vll) the Redoveloper 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 Redoveloper 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 bo $34,000; provided that the Redevelopor shall doposit the amount of {84,000 In accordance with SWIM One -4f W The construction of the Minimum Improvements shall be deemed to be substantially completed when the Redeveloper hes received a certl�icate of occupancy from the responsible inspecting authority. �C-rl `' c 1(,—Q Section 4.8. Construction Letter of Credit. In order to secure in part the timely construction of the Minimum Improvements and hence the generation of Tax Increments from the Redevelopment Property, the Redeveloper shall. upon closing on conveyance of the Redevelopment Property from the Authority to the Redeveloper, deliver to the Authority an irrevocable bank letter of credit (the "Letter of Credit") in a form satisfactory to the Authority and complying with the terms of this Section. The Letter of Credit shall be In the amount of $19.000 and shall endure for at least one year and shall be renewed or replaced if necessary in order to remain in effect until the Authority has issued a certificate of completion for the Minimum Improvements in accordance with Section 4.4 hereof. Upon issuance of such certificate of completion, the Authority shall return the Letter of Credit to the Redeveloper. At least 30 days before the Letter of Credit will expire, the Redeveloper must provide written notice to the Authority evidencing the issuer's commitment to renew the Letter of Credit or issue a new one. If the Redeveloper fails to provide such timely notice, the Authority may draw the full amount of the Letter of Credit. The provisions of this Section shall not be construed to prejudiced or limit any additional right of the Authority under Article IX. of this Agreement. aunt" Oul"s HRA AGENDA AUGUST 3, 1994 V. Consideration to discuss the nreliminary concent and use of TIF (Soil Condition District) to assist with the soil corrgedon exoenditures_qg@oriated with the develonment of a oronosed residential oroiect. A. Reference and Background: Rick Murray and Bob Murray of Residential Development, Inc., Chanhassen, MN, are requesting the HRA review and discuss the preliminary concept and use of TIF to assist with the soil correction expenditures associated with the development of the proposed residential project. The developers have a purchase agreement on the 74.7 -acre Krauthauer property. The completed. phased project includes construction of 87 single -homes, 47 twin -homes, 2 commercial facilities, 7 -acre park, and ponds. Approximately 35 acres of the 74.7 acres is in the township and of the approximate 35 acres, 7 acres consists of a gravel pit. It is of this approximate area that could constitute a Soil Condition District. The HRA is asked to discuss the project and determine preliminary concept endorsement for the use of TIF assuming satisfactory findings have been substantiated for these technical requirements and concerns. In other words, assume the following has been satisfied. Some technical requirements and concerns: Soil Condition District - 1) Unusual terrain, the presence of hazardous substances, pollution or conUuninants, or soil deficiencies for 80% of the acreage in the district require substantial filling, grading, removal or remedial action, or other physical preparation for use. (Findings substantiated by engineering documentation.) 2) The estimated coat of the physical preparation under clause 1. but excluding costs directly related to roads and local improvements, exceeds the fair market value of the land before completion of the preparation. HRA Attorney - Confirms and endorses findings. Redeveloper provides evidence substantiating the but for test". Final numbers determine the residential tax revenues support TIF pay- as-you-go assistance. Compliance with the HRA -TIF policies. Modification of Redevelopment Project No. 1 boundaries. Execution of a Private Redevelopment Contract. Some quality concerns: Quality of housing - Base value of twin -home is $80,000 and base value Page 1 HRA AGENDA AUGUST 3, 1994 of single -home is $95,000 in Phase I. Potential higher value of homes in wooded -lots of future developed phases. 2. Services - Added services due to growth in taring jurisdictions. 3. Growth - Including this housing project, 339 residential lots are proposed for 1995. A key question may be "Would this property develop with the existence of the gravel pit, without TIF assistance, now or in the future?" Again, the developers are requesting the HRA review and discuss the preliminary concept for the use of TIF to assist with the soil correction expenditures associated with the development of the proposed residential project. B. Alternative Actions:. 1. A motion to endorse the preliminary concept for the use of TIF to assist with soil correction expenditures subject to satisfaction of the above requirements and concerns; however, not limited -to those requirements and concerns, and subject to HRA attorney confirmation and endorsement of findings. 2. A motion denying the preliminary concept for the use of TIF to assist with soil correction expenditures. 3. A motion to table any action pending additional information. C. Staff Recommendation: Rick Wolfsteller, Jeff O'Neill, and Koropchak are borderline as to the endorsement of the use of TIF for this project. They question if the grading development costs, exclusive of the gravel pit area, are substantially greater than those of other residential developers and its relevant to the land purchase price. Jeff O'Neill will attend the HRA meeting, preliminary plat approval is before the Planning Commission, Tuesday, August 2. D. Su000rting Data: Copy of the Minnesota Statutory for Soil Condition District, HRA -TIF policies, and site map. Page 2 AUG -01-•94 MON 12:52 ID:BDS INC. TEL ^70:786-9034 0521 402 FtY. 01 '94 111 S ¢ GRAVEN P. 2 r0 Ii LOWA M era.'ataeeeavy 040.176 ! aemnb .—al obligation Wbdlvllfoa mum be added 40.169 stLEc-nom Of L-4TLAPRISE ZONE. e dry in (for text of tubdl I to Al. tee .V S. 19971 .leach leer housing r mWttcounly authority, the SIAM. 9. Additional border city allmdoos. In addition to us reductions autho- •emreenu! unit_ In we case rued in subdivisions 7 and 1. this commibaloner may alloote S 1.100.000 for tax reduc- ation is a pledge ora tax on tions to border city enterprise loners Is titin located on the -esters border of the suit. and $700,000 to the border city enterprise gum in the city of Duluth. The commis- ' housing development pro). sinister than make Wocadons to Bunn in titin on the western border by "alumina 'a and (kmilies with incelmas Which Cites' app1WSd0n3 for alloutiona rotate to business proapeeo that have the ynt- as data—od by the United au positive economic impact. Allocations made under this subdivision may be used for r Lha gaaedard metropolitan sus mdltctions as provided in tecton 469.171, or other ofstu of taxa imposed on or Jees is located and ill reirsined by buiWassel baud in the en argnse lone, but Italy %f the municipality deity d b—ats Intal things thiss the ting ofth* tax reduction at it aecessary In orda to rtrs&in it hhi higlt'er mom" if business within�nrsa business o tea gone. LI dtatiou an allocaYons undvr m - don 460.169. subdivision 7. do not apply to this alloau m Laterpfua tones tet 16611sated tisanes result. receive aGocauon/ under this subdi-tuan may continue In effect for Durpogas of those an or 01aer unfaeeaoen elr. allotailons through December 11. 1994. +4 reveaun and HUMM 190! c !71 an 17 r /a -M laws of the lot —4- tib bondsrif 469.174 cQnlvmotrs (for rte+ qJ rubds I to 11. m e ACS. 10911 qT Subd. 19. Solis condition d4aict. (al "Soils oondltiOa dlatna' mane & type *(tax interne ni financing district consisting or a proje" or portions of it pnelem Within ideicer the authonty Anda by resolution that the following conditions exist•. (1) unusual terrain, the presence of haaardous subuaneeg, pollution at conumi• 1921 nand, or soil deficiencies for 10 percent of the &creel! In this dlmrsct require substantial emelt NalviWtastdin filling greding, removal or remedial itown• or other physical preparation for um; 011 sfr/ed on und4r snetloei (2) the estimated cost of the physeal preparation under clause (I). but excluding adle taall as A •m su caw an auter costs directly related o roads as defined in section 160.01 and Weal unprovemeau u It fth 4rety described in sections 429.021, gubdivlsion I. clauses (1) to (n, (Ilk and (IU and err lar valets t g herb r 470.01, exceeds the fait market value of the land before completion of the preparation. ° Dovernin$ body or bed. The requirements of clause (2) need not be satisfied. if each parcel of progeny in the PMJWcI is located. five the district ether basl&fies the requirements of clause (2) or the estUnmed emu of the be authority, ag a cera rip proposed removal or remedial action exceed& 12 per square foot (br the area of the par. ;Pon to teal prlp)gM The col. 'aa Provided by 4W for (b) An arse dou not quutry u e soils condilioa dlmriet If it contains o tvctlaad. It 4hail be dialnbuled to as defined to section 1070.00!, unless the development agreanwas prohibit# draining, of Caen bora to the Legal MAIL or other alteration of the Wetland or other binding legal assurances for prourva• for Which Lite W thortty IIon of the watlaod in provided. et mar ageowith We act Ica an amount � (ni) V the district is located is the etetropolitaa ant. the proposed development {rester ptgloet, mom Lee halt of the district' in the tar Increment financing plan must be coatltta t With me muni:.. in 471.872 I Cham may 1101 exceed polity's Iand use pile adopted accordance +Ile seaims 477.1171 to and 472.173. If is located r raw exempt• If such an revievood by the mautypolitan council under section this disuin outaide ofthis rnnrepol4an aha, the propoaao devalopeaens of" dimes mut be can. aolhaed and distributed 1 pied. or if We land upon &latent +iib the muntdpanty's compnhenatve municipal pigs. "Intrrnal a11ennleat &hall specify Aww I 3ubd 70. Insaroal Wweee Code. As-snus Code" mons the internal Revenue Coda of 1916, ss amended through December 21. 1992. reatN' ¢seane the ItiCa and tipettial aarvlea (fw text of mbd 21. rn.ILS 10971 OW femoral. •SorA holding project shall be guild. 22. TuarluIt faWlq. -Tourism fullity' meant property that: I I I -a kn ted In a coonty wherc Inc enedLn IltlaQM Ib no mole than e1 percent of I IM ata medlM 1netlMa: (2) is located to a covaty to Whmh. ad.4ing the e1hes of the first Class to that ECcs.VG AND I=E7-"::N=(T ACT_CA:TY City o: Mcnticella TAS M;SC=JG FOUCT Broq_aa 2_,036: The Mcatiea? Ta Heusiag act aedevelapment Auzhcrit•, will atili:a Tax Iac:emeat Financing to support the cc==, laag-tars aeoaaaie and boussag goals. Polis? C_asiderations: The `ERA will analy:a and eva'_oata Tax Iacra=:%z Piaanciag proposals- based upon the followiaq policy. considerations. Each project shall be maas=ed against these considerations and the project's value shall be detaraiaed, based upon meeting these ecasideratiaas. �ev(II The project shall be e_asistaat with t:e City's Camp:ehensive Plan. —��2) The project shall de=rst:ata long -tats er_n=-'c and/or housiag benefits to the community. ,r.R(,3'T The prajer_ shall ceata and/or reta'� emp'_aomeat for Monticello residents. • _ §�4 4 The project shall ine:aase mcderate.priced housiaq options for area residents. . \ The project shall facilitate the redevelopment at d elisisatiom of •substandard• or •blighted• areas as detarmiaed by the MU. /l The project shall facilitate ', 6 •elaaa71;4 of env,—:*umeatal-,y =sour -0- property. -1� /(71 The pro act shall provide additional public fundiaq WP for pubiic Improvements iacludiaq ati-sties and/or park development which would not otherwise be available. (� The project shall be deemed to promote additional M desired *spin -of!* dsvelapmsnt. P=C' CIIIDS: M3 (11 Tac Inersment Pinanciaq will be considered for ass is eccacmic dsve:agmeAt, radevelopment and speciali:sd heusicq projects. The standard level of assistaaes for projects shall_ be as foli0w6: �o:� t1.xRwT �pt N. 1/2 SEC. 10. T. 121. R24 url ..!»�� i � uocAnoN � qt • • • M ISO 7 • • • w 8 T �.t• � � • sy t �•!� O i� �-•.`„"^``''i"�,. `"''`••,,,,w., � i-" ""'ten... �'�"'^'-„►.. i L HRA AGENDA AUGUST 3, 1994 Consideration to appoint two HRA members to the Senior• Conqreqate Housing Committee and a oroiect uadate. Reference and Background: Members and staff of the HRA, Hospital Board, and City Council have met on two previous occasions. Three development teams made presentations of various financing, management, ownership, and design concepts for the development of a senior -congregate housing project. The three development teams consisted of Horty, Elving & Associates, Inc.; Ilelgeson Development Company, Inc.; and BRW Elness Architects, Inc. Market studies determined the need for an approximate 40 -unit facility of congregate housing rather than assisted -living. A quality project with affordable rents is key to its success. At the last meeting, the group consensus was to proceed with the concept as a community involvement project. Neither the Hospital, City, or HRA were interested in ownership. Each entity was to appoint two representatives to the committee. The committee, also including two members at -large, will determine ownership, financing and mangement method, and design, and select the development team. Upon designation of committee members, the group intends to make site visits of completed projects developed by the three teams and research the potential of establishing a 501(c)3 non-profit organization. It is my understanding that the deoignated committee may hold its first meeting on Tuesday, August 9. City Council representatives are Clint Herbot and Shirley Anderron and Hospital Board ropresunt.atives are Don Bislce and Helen Weidenback. HRA members Al Larson and Brad Barger have expressed an interest and willingness to serve as HRA representatives. B. Alternative Actiono: 1. A motion to appoint Al Larson and Brad Barger ao HRA repreuentativeo to the Senior- Congregate Heuiging Committee. 2. A motion to appoint other intereoted HRA memberu au roprooentativeo to the Senior Congregaw Iiuu:;lnu Committee. 3. A motion to deny appointmento and to withdraw endorsement of the Senior -Congregate Houjing concept. Page 1 HRA AGENDA r AUGUST 3, 1994 Staff Recommendation: As senior housing has been a priority goal of the IiRA for the past several years and with endorsement by other local entities, staff recommends HRA endorsement. Staff prefers not to recommend or endorse HRA representation. Supportina Data: None. PnflFI 2 HRA AGENDA AUGUST 3, 1994 Consideration of Project Updates: a) Standard Iron & Wireworks, Inc. - Open House scheduled for August 4, 1994, 3:00 til 7:00 p.m. b) Remmele Engineering, Inc. - Rick Wolfsteller and Koropchak attended the award presentation and reception at Remmele Engineering on July 27. Monticello Plant 20 received the AEGIS Excellence Award from the US Navy and Martin Marietta for its role in the development and long- term production of power dividers which are critical and complex components of the radar system. C) Polycast Mfg. Inc. - Project construction proceeds on schedule. d) H -Window Company - MN TED Loan Office Brad Simenson informed today that he had anticipated award approval for the $250,000 Federal dollars for the H -Window project; however, with no game plan and tight availability of Federal and State dollars all applications are stuck. He anticipates a recommendation within the next two weeks. e) Others. Pages 1 HRA AGENDA AUGUST 3, 1994 Other Business (a) PRG billing - The previous PRG billing reviewed by HRA members were corrected by transfer of the Fay -Mar proposal charges to non -billable charges. I did authorize payment of this billing. However, I have enclosed a running copy of the H -Window project billing since its beginning in July of 1993 and noted the not -to -exceed figure agreed upon with City Council for the SCREG application. Please note Mr. Kirscht's request of Council for an additional $750 to complete the application for Federal dollars and to cover PRG latest billing statement of July 29. Council approved the application; however, the application fees are recovered through TIF District No. 1-7. The Federal application does require substantial additional Information and if awarded the City retains the full $280,000 Interest and principal payback. Council will address this issue, therefore, no action is required of the HRA. b) Holmes & Graven billings - No problem. C) 1998 City Budget - Rick Wolfeteller is requesting all preliminary budget request from departments be received by August 18, 1994. Would the 11RA like to request anything beyond its normal proposed budget? d) Other. Page 1 IL i SUMMARY PUBLIC RESOURCE (;ROUP, INC. BILLINGS FOR THE H -WINDOW COMPANY 7-2-93 Proposal $1,725.00 8-11-93 Follow-up $ 393.75 10-13-93 Follow-up $ 588.75 SUBTOTAL $2,707.50 11-10-93 SCERG ($3,500)• $2,025.00 12-16-93 SCERG $ 675.00 12-31-93 SCERG $ 112.50 1-11-94 SCERG $ 18.75 2-18-94 SCERG $ 37.50 4-12-94 SCERG $ 93.75 6-16-94 SCERG 8 596.25 SUBTOTAL $3,558.75 TOTAL $6,266.25 • COUNCIL ADOPTION OF SCERG RESOLUTION AND AGREED TO CONTRACT PRG FOR GRANT APPLICATION AT A FEE NOT -TO -EXCEED $3,500. r PUBLIC RESOURCE r GROUP, INC. M.kam, Devel P -,n a Fu.— Sp.Ww July 29, 1994 Ms. 011ie Koropchak City of Monticdlo 250 Eau Broadway P.O. Box 1147 Monticello, MN 55362 STATEMENT Consulting Services—June 1, 1994 through July 15, 1994 6.2-94 LPK—Revisc H -Window Sticture 1.25 6.13-94 LPK—A Window FRO, revisions .75 6.16-94 LPK—H-Window ERG application, revisions, follow up with Stcve bmune 1.25 6.17-94 LPK—H-Window Project .75 6.27-94 LPK—With Brad Sitttenson and Nancy Johnson "regarding H -Window, mvironmea al review paci®ge 3.25 7-7-94 LPK—H-Window, envimnmc ►tal review record for CDBG fluids 1.75 7-8-94 LPK—Environmental rbview record for CDBG 1.00 7-15-94 LPK—Environnumlai review rocord for H -Window CDBG 1.50 1 4205 Lancaster Lune Norchr Suite 1100 0 MinneOPO4 Wnmota 55441 • (612) 550.7979 6 (612) 5%92.11 Fax Ms. 011ie Koropchak Page 2 NON CHARGEABLE N ARKETING HOURS: 7 -I1 -9d LPK—Projeat reviews, Rich Murray Project follow-up 1.00 7-14-94 LPK—Rich Murray Project 1.30 TOTAL NON -CHARGEABLE HOURS 2.30 TOTAL CHARGEABLE HOURS 11.30 Net Chargeable Hours (& S90l = (LYK) 51,035.00 TOTAL AMOUNT DUEQQ �BF.ta QYEZ m QMR-m 93MLE $1,035.00 TERMS: NET DUE UPON RBCE>pT; 1.33% PER MONTH SERVICE CHARGE ON PAST DUE ACCOUNTS. t PUBLIC RESOURCE GROUP, INC. Marketing, Development & Finance Specialists August 1, 1994 Ms. 011ie Koropchak Economic Development Director 250 East Broadway P.O. Box 1147 Monticello, MN 55362 RE: H -Window Budget Dear 011ie: Pursuant to our earlier conversation, 1 would like to follow-up relative to our authorized budget for completing the Economic Recovery Grant application to assist the expansion of the H - Window Company. When this process began in 1993, we had estimated fees totalling $3,500. As you are aware, this project has become increasingly complicated because of foreign ownership and historical financial performance. In addition, the State has now determined that it will use federal funds to finance the project which requires additional documentation and an Environmental Review. The City will, however, be eligible to retain all of the repayments for its revolving loan fund. As a result, Public Resource Group, Inc. is requesting the authorization of additional related to this project to cover at least a portion of the increased time needed to complete the application process. We request authorization to bill additional time, not to exceed $750. Please call me at (800)642.6258 with any questions. Sin=ly, P. Kirscch t cc: Patrick W. Pelstring, CEO 4205 Lancaster Irene North,* Sults 1100 0 Mlnnealxills, Minnen-da 55441 0 (6121 550.7979 • (612)550.9221 Fox HOLMES 8t: GRAVEN CAAeT6e6D as PDbw.f Cwur. M1rwi. an Tdgh-4 =4306 L July 10, 191?4 INVOICE 0 46441 �. MN190: 43 CITY QF MONTICELLO Fa�Mar TIF Project _ P 0 Box 1147 MONTICELLO MN 53362-9249 � � N0 1 - i p. For All Legal Services From June 24, 1994 Thru June 30. 1994 As Follows: 06/24/94 SJB Review memo for 0. Koropchsk. draft 2. C0 consracti :otter to 0. Aarepcaae Total 7ervites Name Hours Rate Amaunt Stephen J Bubul 2.00 :20.00 240.00 For All Disbursements As Follows. Postage 2.13 I doom. order pwRQY of tar mat dro sooasd, cWm, or dstn.rd b�i. de -so @*nteropM \(kms dOtlneA � Jonn 3 Dean 41C _0 Total Disbursements: sa :'3 Total Services And Disbursements: $2,1z,13 HOLMES be GPAvBN ca..rsMM as ram" C.O..IH...A. fir.sme Tdwb—al/=4= ,july 19, 1994 INVOICE Y 46243 CITY OF MONTICELLOTIF Y1-16 - Schulz P O SOX 1147 MONTICELLO MN 35362-9245 For All Legal Services From June 24, 1994 Thru June 30, 1094 As Follows. 06/24/94 SJB Prepare for Schulz closing 0.29 10.:0 06/27/94 CBR Phone callsi intraoffice conference 0.80 5t C0 06/28/94 CAM Phone call with 9 Endresi review file 1.60 206.44 and cloning documents+ office conference with C Rocklitz 06/28/44 JDO Office conte,encs with C Heine re 0 29 33 7' closing 06/28/94 CDR Review documents, introoffice conference re closing 0.50 39. 06/29/94 CAN Attend closing 3.30 429. JJ Total 3erv1ces: *741. -': Name Hours Catherine B. Rocklitz 1.30 John 8. Dean 0.29 Corrine A Heine 4.90 Stephen J Bubul 0.25 For All Disbursements As Follows: 06/29/94 Mileage expense (CAN) 1I I uMwpsaftdlaw M euid pe John 3 Dean Rate Amount 70.00 91.00 139.00 23.75 130.00 637.00 t 20. 00 30.00 19.00 Total Disbursements: s19.�.o Total Services And Disbursements: $80e.75