City Council Agenda Packet 04-26-2004
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Mayor:
AGENDA
REGULAR MEETING - MONTICELLO CITY COUNCIL
Monday, April 26, 2004 - 7 p.m.
Bruce Thielen
Council Members:
Roger Carlson, Glen Posusta, Robbie Smith and Brian Stumpf
1.
Call to Order and Pledge of Allegiance.
Approve minutes of the April 12, 2004 regular Council meeting. It c; <L. C ,
Approve minutes of the April 12, 2004 Workshop meeting. 'jZ.c j) ) ~ ~
Approve minutes of the April 13, 2004 Board of Review ~ 5 Jlc'- f.~ /~ r '
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;Jonsideration of adding items to the agenda. ~ ~ L.o*.e"
(~ G,~ l..."..d. CJu",~ C")'v is U~~(. P 11 1J iJ-^~Q \t: €.- I..- I ~ ''7'''*-' ~ /
Citizen comments/petitions, rdquests and complaints. "
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C.
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5.
Consent agenda.
Consideration ofratifying new hires and terminations for the MCC and City Hall.~ <) ~
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Consideration of approving proposed settlement agreement on Douglas Franks 1-(
assessment appeal.
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Consideration of liquor license renewals for the year 2004.
Consideration of adopting fiscal policies and procedures - Audit Report
Consideration to review Greater Monticello Enterprise Fund (GMEF) Loan No. 023 for
compliance with the EDA-GMEF Business Subsidy Criteria. Applicant: WSI Industries,
Inc.
6. Consideration of items removed from the consent agenda for discussion.
G Public hearing proposed reconstruction of Prairie Road, Project No. 2003-20C. -
8. Public Hearing-Consideration of a resolution adopting proposed assessment roll for delinquent
utility bills and certification of assessment roll to County Auditor.
9. Consideration of amendment to Planned Unit Development - Hillside Farms
10. Consideration of awarding contract on Overflow Parking Lot -Walnut Street, Project
No.2003-18C.
11. Approve payment of bills for April
12.
Adjourn
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MINUTES
REGULAR MEETING - MONTICELLO CITY COUNCIL
Monday, April 12, 2004 - 7 p.m.
Members Present:
Roger Carlson, Glen Posusta, Robbie Smith, Brian Stumpf and Bruce
Thielen.
Members Absent:
None
1. Call to Order and Plede:c of Alle~iance.
Mayor Thielen called the meeting to order at 7 p.m. and declared a quorum present. The Pledge
of Allegiance was said.
2. Approve minutes of March 22. 2004 regular Council meeting.
BRIAN STUMPF MOVED TO APPROVE THE MINUTES OF THE MARCH 22, 2004
COUNCIL MEETING. ROGER CARLSON SECONDED THE MOTION. MOTION
CARRIED UNANIMOUSLY.
3.
Considcration of addine: items to the a~enda.
Brian Stumpf added discussion of the area at the back of the Groveland 4th Addition. Rick
Wolfsteller requested approval of a resolution declaring the City's intent to reimburse itself for
certain expenditures from the proceeds of a bond issue.
ROBBIE SMITH MOVED TO ADD THESE ITEMS TO THE AGENDA. BRIAN STUMPF
SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY.
4. Citizen comments/petitions. requests and complaints.
Mayor Thiclen explained the purpose of the citizens comments portion of the agenda.
a.
Groveland Park: Michelle Brandt, 9988 Innsbrook Drive and Jackie Fallon, 3766
Woodside Drive came bef()re the Council to express their concerns about the park in the
Groveland development. They had met with Mayor Bruce Thielen and Parks Chairman
Larry Nolan and had reached an agreement wherein: 1) The City would do some
plantings to screen their property from the park; 2) Eliminate the proposed restroom
structure and scale back the shelter and 3) Delay the construction of the hard court for
this year. Ms. Brandt and Ms. Fallon read a statement setting l()fth their position on the
Groveland parle They acknowledged the petition that was being circulated by residents
who were in favor of the park and its further development and noted that these residents
did not live adjacent to the parle
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Council Minutes - 4/12/04
Douglas Dickie, 3739 Brcntwood Drive and Felicia Doyle, 10040 Somerset Lane,
submitted a petition from some 80 plus residents of the Groveland development who
were in favor of continuing development of the park as outlined by the Pmks
Commission at their May 12,2003 meeting. A number ofthese residents were in
attendance at this meeting as well. Ms. Doyle stated that negative comments about the
pmk were limited to a few individuals. Overall the residents were supportive of the
park and looked forward to its full development.
Ms. Brandt pointed out that she was within 57 feet of the playground so she was more
impacted by what happened there.
Mr. Shea, 3712 Savannah A venue stated he didn't feel the pmk noise was a real issue.
He said there was just as much noise coming from the kids playing in the ymds and to
him that was just a sound of summer. Jeff Janette, 3630 Brentwood Drive, stated the
presence of the park was a major factor in their decision on selecting a lot in the
Groveland development..
b.
Prairie Road - Wayne Carlson, 215 Prairie Road expressed his concerns about the
proposal to widen Prairie Road and other proposed improvements. He stated that the
speed of the vehicles on that road travels fast mId that widening the road will encourage
the excessive speed. The development of the townhomes in the Timber Ridge yd
Addition would just add more traffic. He felt the proposed development and the road
improvements should be looked at carefully since there me safety issues related to this
area.
c. Annexation - Doug Stokes, 8066 Edmonson A venue NE stated he did not want to be
annexed into the City of Monticello. Mayor Thielen responded that the City and the
Township are in the process of mediated negotiations at the present time.
5. Consent a2enda.
A. Consideration of ratifying new hires for the MCC.. Recommendation: Ratify the new
employees as identified.
B. Consideration of appointment to fill vacancy 011 Library Board. Recommendation:
Approve the appointment of Jacqueline Gordon to a three year term on the Library
Board expiring on December 31, 2006 and to appoint Eric Anderson to complete the
term of Diane Herbst which expires December 31,2004.
C. Consideration of approving final plat and development agreement for Autumn Ridge HI
Addition. Recommendation: Approve the final plat and development agreement for
Autumn Ridge III Addition subject to approval by the City Attorney.
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D.
Consideration of a request for a conditional use permit for a detached acccssory
structure in an R-I District. Applicant: Jason VanderHeyden. Recommendation:
Approve the conditional use permit for a detached accessory garage with the condition
that the applicant meet each of the requirements of the zoning ordinance, including the
1,500 square foot threshold. Applicant allowed to install cement apron in front of
accessory building enabling vehicle turn-around movement. No driveway olIrear yard
area parking is allowed with this approval.
E. Consideration of approving final plat and development agreement for Timber Ridge III
plat. Recommendation: Approve the final plat and development agreement for the
Timber Ridge III Addition.
F. Consideration of amendment to final plat and rezoning request for Carlisle Village.
Recommendation: Amend the final plat of Carlisle Village with the following
conditions and approve the rezoning from A-O to RIA, R2A and R2.
Tree removal, grading and utility work boundaries for Phase 1 to be set by the City Engineer which
includes restrictions on work in the wooded areas until plans are approved.
Developer provides all securities as required via the preliminary finance spreadsheet.
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Development agreement is executed which identifies a tree preservation plan for Phase I consistent with
the Planned Unit Development approval granted by the City Council. Any significant changes of the PUD
tree preservation protocol must first be approved by the City Council.
Preliminary plat documentation on the entire project to be updated prior to initiation of Phase 1.
Tree preservation plan to be established prior to any work being allowed in Phase II including tree
removal.
G. Considcration of authorizing election equipment purchase. Recommendation:
Approve the purchase ofM-IOO ballot tabulator for use in the 2004 election for $4,475
plus sales tax.
H. Consideration of resolution ratifying policy issues for presentation to Wright County
Commissioners. Recommendation: Approve the policy statement for presentation to
the Wright County Board of Commissioners.
1. Consideration of cost estimated for on street, angled parking and boulevard
improvements on Walnut Street adjacent to the Dan Olson property and authorizing
staff to obtain bids on thc work. Recommendation: Authorized the preparation of cost
estimates for street and boulevard improvements on Walnut Street adjacent to the Dan
Olson property, 207 West 3'u Street and authorizing staff to obtain bids on the work.
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Robbie Smith asked that item #5E be pulled from the consent agenda and discussed in
conjunction with agenda item #9. Glen Posusta requested that item #5H be removed from the
consent agenda for discussion.
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Council Minutes - 4112/04
ROBBIE SMITH MOVED TO APPROVE THE CONSENT AGENDA WITH ITEMS #5E
AND #5H BEING REMOVED. ROGER CARLSON SECONDED 'rHE MOTION. MOTION
CARRIED UNANIMOUSLY.
6.
Consideration of items removed from the consent al!enda for discussion.
#5H - Glen Posusta stated that he asked that this item be pulled because he wanted to vote in
opposition to the policy statement as he felt there was redundancy in the policy statement.
BRIAN STUMPF MOVED TO ADOPT A RESOLUTION RATIFYING TIlE POSITION
PAPER AS PREPARED AND SUPPORT PRESENTATION TO THE WRIGHT COUNTY
COMMISSIONERS BY THE WRIGHT COUNTY MAYORS ASSOCIATION
REPRESENTATIVES. GLEN POSUST A SECONDED THE MOTION. MOTION
CARRIED WITH GLEN POSUSTA VOTING IN OPPOSITION.
7.
Presentation bv Mareo Askin and Tom Parker of the Library Board on exoansion of
Ii bra facili and re uestin authorization to be in work with an architect on the
proposed exoansion.
Tom Parker and Margo Askin spoke to the Council about the existing use of the library and the
need to look at expansion needed to handle the continued growth. Tom Parker stated that the
library had been built in 1982 and there had been no expansion of the building. In 2003 when
the library was moved to its present site, the library did not gain space hut did end up with a
newer building and the capahility to expand if needed. Based on the increase in usage and the
continuing growth of the community, now is an appropriate time to look at expansion of the
existing building. It was pointed out that in the Great River Regional Lihrary system a Branch
III library has 10,000 sq. f1. Monticello presently has about 7,000 sq. fl. Being a Branch III
library means more books and more staff hours. The Library Board and staff is requesting the
opportunity to work with an architect so that they can come up with recommendations for the
expansion of the building that can then be presented to the Council.
Rick W olfsteller stated that the architect could give the City a good idea of the cost of the
expansion and whether the City has sufficient funds budgeted for it. Glen Posusta, council
liaison to the Library Board noted that at the last meeting of the Library Board there was
discussion on whether the architect should focus only on the immediate expansion needs or
look at ultimate expansion of that site. It was generally felt that the canopy area would be the
area considered in the expansion but the Council felt the architect should look at long term
needs as well. Fred Patch stated that initially the City was looking at utilizing the existing
building structure and that is why the canopy area was looked at. He noted that the only down
side to utilizing the existing canopy area is that the column structures would extend down and
interfere with the open space. He suggested that the expansion project be spread over two years
for budgeting purposes.
GLEN POSUSTA MOVED TO AUTHORIZE CITY STAFF ALONG WITH THE LlBRARY
BOARD TO BEGIN WORK WITH AN ARCHITECT' ON THE PRELIMINAR Y PLANS
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Council Minutes - 4/ 12/04
FOR EXPANSION OF THE EXISTING LIBRARY BUILDING. ROBBIE SMITH
SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY.
8.
Consideration of anprovinl! a resolution of negative impact - SunnvFresh/Old
Community Methodist Church.
Jeff O'Neill provided background information on this item pointing out that item had been
discussed at previous Council meetings. At this time the City is being asked to relocate the
Methodist Church building onto MCC property and to issue a negative declaration of impact for
Sunny Fresh. The proposal for the relocation of the Methodist Church would call for Swan
River School to obtain planning approvals for the building and secure their charter school status
and associated funding. Sunny Fresh would contribute $200,000 to Cover the cost of moving
the bui lding to the new site, preparation of the foundation and closing the open portion of the
east wall. The City would move the National Guard storage facility to another location and the
City would accept the responsibility for maintaining the facility until such time as the Swan
River School receives charter status. Other issues include the purchase of the building by Swan
River, the use of the Methodist Church facility by the City or other community groups and
related revenue from the rental and agreement on a joint parking arrangement. Jeff 0 'Neill
presented a sketch of the proposed building layout.
Isabelle Olson, Michelle Twardy and other representatives for the Swan River School were
present and outlined for the Council their plans for use of the building and the time line for
obtaining their charter status. They also provided information on financing revenues that would
be available to them for use in acquiring and maintaining the building. The school would be a
Montessori school for grades 1-6 with a maximum enrollment of 124. The representatives of
the Swan River School pointed out that this an opportunity to bring a community school to
Monticello but also to preserve an historic building.
Glen Posusta asked if the National Guard was agreeable to this. Jeff O'Neill indicated that the
National Guard had not yet been approached by the City but he felt comfortable that the City
could meet the needs of the National Guard. Robbie Smith asked if the City was donating the
property to the charter school and stated his concern about the school competing with the public
school system. Bruce Thielen asked what happens to the property if the charter school ceases to
exist. Isabelle Olson responded that the chalier school generally attracts those students not
currently in the public school system. Some of the those who have enrolled for the charter
school are from Princeton, St. Cloud, St. Michael and Becker so it is bringing people in that
would not normally be in the existing school system. She noted that very few charter school
applications have been turned down and she was confident that the charter school would
conti nue to operate. However, if that was a concern of the city then a provision could be placed
in the agreement that would have the property revert back to the city if it was no longer used as
a charter school. Roger Carlson asked if other charter schools were Set up in a similar fashion
to what is being proposed f<lr Monticello. Representatives from the Swan River School
indicated there was similar situation in Rogers.
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Council Minutes - 4/12/04
Bruce Thielen felt this provided a good opportunity for the community. Although Roger
Carlson suppOlied the concept of the charter school he had reservations about using municipal
funds for such a venture and putting thc City at a financial risk.
GLEN POSUSTA MOVED TO IIA VE THE STAFF PREPARE AN AGREEMENT
BETWEEN T1IE CITY OF MONTICELLO, SUNNY FRESH FOODS AND SWAN RIVER
MONTESSORI SCHOOL DETAILING THE TERMS OF THE BUILDING RELOCATION,
FINANCING CONSIDERATIONS, USE OF THE BUILDING BY THE CITY AND JOINT
PARKING ARRANGEMENTS AND TO ADOPT A RESOLUTION ESTABLISHING A
NEGATIVE DECLARATION OF IMPACT WHICH WOULD ALLOW THE BUILDING era
BE MOVED. BRIAN STUMPF SECONDED THE MOTION WITH DISCUSSION.
Brian Stumpf noted the proposal does have a revenue potential for the City. Robbie Smith felt
it put the City in competition with the public schools and he opposed it for that reason
UPON VOTE BEING TAKEN, MOTION CARRIED WITH ROBBIE SMITH AND ROGER
CARLSON VOTING IN OPPOSITION.
9.
Consideration of acceDtin~ feasibility report and setting a public hearing date - Prairie
Road Improvements.
Bret Weiss stated the proposed project covers Prairie Road from CSAH 75 to 1-94. He is
asking that the City accept the feasibility report and set a public hearing date for April 26, 2004.
He noted the concern raised about the residential development and the increase in traffic that
would result from the development. The project would get the road reconstructed to a standard
to handle the traffic volume and accommodate pedestrian traffic. Bret Weiss stated more
information will be presented at the public hearing and at the informational meeting. He did
note however, that this project has costs for new improvements outside the reconstruction costs
such as storm sewer.
Jane McNamara, 315 Prairie Road, raised some questions on information contained in the
feasibility report. She challenged the statement in the report that "The property owners along
the existing Prairie Road requested that the City consider the project to address the lack of
pedestrian facilities in the area." She indicated that she had talked to 1] out of the] 6 property
owners abutting Prairie Road and none had requested this and if it was not requested by the
property owners why was it being done. Bruce Thielen noted that over a year ago an accident
occurred and that was the reason for the discussion on pedestrian facilities in the area. Brian
Stumpf added that the resident whose chi Id was involved in the accident did not actually live on
Prairie Road. It was noted that the developer of the Timber Ridge 3rd Addition had petitioned
for improvements in this area so the study was done in part in response to the petition. Bret
Weiss added that after the public hearing, the Council can determine the scope of the project.
Jane McNamara also pointed out that the bus stops on both Hedman Lane and Prairie Road but
there is no sidewalk on Hedman Lane. She also questioned the statement in the report "Storm
sewer will bc constructed to accommodate runoff from the roadway and will provide an outlet
f(Jr the proposed pond within the Timber Ridge 3rd Addition development." She was concerned
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Council Minutes - 4/12/04
about approving a development agreement that would require the storm sewer. Rret Weiss
explained this was for the 8 units that do not have a ponding area.
ROBBIE SMITH MOVED TO ACCEPT THE FEASlBILITY REPORT FOR THE PRAIRIE
ROAD RECONSTRUCTION PROJECT NO. 2003-02C AND TO SET A PUBLIC IIEARING
DATE FOR APRIL 26, 2004. ROGER CARLSON SECONDED THE MOTION. MOTION
CARRIED UNANIMOUSLY.
ROBBIE SMITH MOVED TO APPROVE THE PRELIMINARY PLAT OF TIMBER RIDGE
3RD ADDITION BASED ON THE FINDINGS THAT THE PLAT MEETS THE
REQUIREMENTS OF THE CITY'S COMPREHENSIVE PLAN AND THE R-2 ZONING
DISTRICT AND TO RECOMMEND APPROVAL OF Tl-IE CONDITIONAL USE PERMIT
FOR FIVE 4-UNIT TOWNHOUSE BUILDINGS BASED ON 'fHE APPLICANT MEETING
THE CONDITIONS BELOW AND BASED ON THE FINDINGS THAT THE PROPOSED
PLANS ARE CONSISTENT WITH R-2 ZONING STANDARDS AND THE
REQUIREMENT OF THE AREA TO ENSURE PUBLIC SAFETY AND AN ATfRACTIVE
NEIGHBORf IOOD:
Submission of a final plat and execution of a development contract prior to issuance of building permits.
Establishment of an association to maintain common areas, including the cul-de-sac island landscaping.
Landscape detail is provided for the separation of combined driveways.
Provide sidewalk along both sides of Prairie Road to connect to Timber Ridge in accordance with the City
Engineer's plan for the Prairie Road Reconstruction Project.
Provide additional landscaped butfer along the east boundary of the north portion of the project consistent
with the rest of the project and the recommendations of the Planning Commission Report of April 6, 2004.
Compliance with City Engineer recommendations on grading, drainage, utilities and street construction.
Compliance with City Public Works direction for mailbox locations, garbage collection locations, street
lighting and other requirements.
Consideration of avoroval of purchase agreement for acauisition of industrial land.
City Administrator, Rick WoIfsteller provided background information on the item. Initially
the Council had approved a lettcr of intent which was to be the basis for arriving at a purchase
agreement. The proposal ended up involving a number of agreements which made the situation
more complicated. Agreements are needed to cover the sale of a strip of land by the City to the
property owner, an assessment agreement to cover the Chelsea Road improvements; a
tcmporary access agreement and the purchase of 120 acres of lmld by the City. There is some
engineering work that remains to be completed and it is hoped that an agreement can reached
within the next couple of weeks possibly by June 1 st. The terms of the original letter of intent
approved by staff~ Council and IDC small group was not approved by the seller. Matt Brokl
stated that because the letter of intent that was before the Council was not what was originally
started out with and so they are looking for direction from the Council. The offer made by the
City has not been agreed to by the seller of the land. Matt Brokl suggested that someone from
the Council should be in on the negotiations. Mayor Thielen indicated he would be willing to
sit in on the negotiations..
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G ]en Posusta asked if the City approved a letter of intent, why was there a sccond Ictter of
intent. Matt Brokl respondcd that the second letter of intent was because the seller was not in
agreement with some of the conditions notcd in the letter of intent. Rick W olfsteller stated that
if the letter of intent is modificd may be it should go back to the IDC Small Group
BRIAN STUMPF MOVED TO TABLE THIS ITEM AND DIRECT STAFF AND THE
MAYOR TO WORK WITH THE IDC SMALL GROUP AND CONTINUE NEGOTIATIONS.
GLEN POSUST A SECONDED THE MOTION.
John Chadwick stated there is a struggle to draw up the appropriate legal documents. He stated
that if they could retain the commercia] land they could pay for whatever improvements were
needed. Glen Posusta asked if Mr. Chadwick had seen the 6 items noted by the staff. Mr.
Chadwick said he didn't know whether he had seen it. Rick Wolfsteller stated the terms listed
in the letter of intent are not being agreed to by the seller. lIe noted the road alignment would
require casement acquisition. Rick Wolfsteller stated that somc of the land would derive more
benefit from the improvements so the property should not be assessed equally.
UPON VOTE BEING TAKEN, MOTION CARRIED UNANIMOUSLY.
Consideration of bids and award of contract for Overflow Parkin!! Lot at Walnut Street.
Project No. 2003-18C.
John Simo]a indicated that the preliminary estimate for thc parking lot construction was
$74,000. Plans for thc parking lot were preparcd by John Bogart and the project was
advertised. Five bids were received ranging from $37,538.90 to $62,2] 7. John Simola also
received a quote for the electrical work for lighting the parking lot in the amount of $4,200.
There was an agrccment with Towne Centrc that they would pay 50% of the cost of the parking
lot but Mr. Veit has not responded back agreeing to payment of his share ofthc cost..
Glen Posusta asked if John Simola liked the design of the parking lot. John Simola stated it
was an eiIicient use of space. G]en Posusta indicated he had talked with John Bogart and Mr.
Bogart indicatcd that the design came from the city staff and Mr. Bogart provided Glcn with
another sketch. G]en Posusta felt the existing parking lot design would makcit difficult for
snow removal and maintenance.
Rick W olfsteller notcd that the parking agrecmcnt was a result of the conditional use penuit
that was approved for the restaurant in the Towne Centre. 'l'he City was to pick up halfthc cost
because of the parking needs of the library,(no longer at that sitc) and the other half was to be
picked up by Veit. The question is whether it would be premature to build the parking lot at
this time. It was questioned whether Sunny Frcsh needed additional parking. With the possible
removal of the Methodist Church building therc would be a possibility of developing additional
parking on their sitc otherwise they could contribute towards the construction of the parking lot.
John Simola statcd when the parking lot was first looked at they were trying to save the trees on
the site. He also indicated that it docs not comply with city ordinance as thc ordinance requires
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islands to be installed. John Simola stated the bids are good for 30 days so the Council does
not have act on them at this meeting.
BRIAN STUMPF MOVED TO TABLE ACTION ON THE A WARD OF BIDS FOR THE
OVERFLOW PARKING LOT ON WALNUT STREET UNTIL THE NEXT MEETING AND
DIRECT STAFF TO CONTACT VAUGHAN VEIT ON HIS COST PARTICIPATION IN
THE PROJECT. ROBBIE SMITH SECONDED THE MOTION. MOTION CARRIED WITH
GLEN POSUST A VOTING IN OPPOSITION.
12.
Consideration of purchase of property at 224 East 4th Street.
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OlIie Koropchak provided background on this item. She eXplained the property is not occupied
and has been listed for a couple of months. City staff talked about this area and its
redevelopment. The HRA considered this at their April meeting. Ollie Koropchak indicated
that there would be no relocation costs involved and the HRA did recommend that the Council
proceed with the acquisition of the parcel only if the Council agrees. If the property is
redeveloped it will require a considerable amount of TIF assistance. By purchasing this
property the City is demolishing one blighted property. The HRA also noted that in the future
they would like to see redevelopment driven by a developer's proposal. Roger Carlson added
that the HRA was not really excited about this property and was concerned that with the City
purchase of this property, the price of surrounding property would escalate. The H RA would
prefer developers coming to them with property they have acquired and request assistance from
the HRA.
BRIAN STUMPF MOVED TO DENY APPROV At TO AUTHORIZE ENTERING INTO A
PURCHASE AGREEMENT FOR THE ACQUISITION OF THE PROPERTY LOCATED AT
224 EAST 4TH STREET. GLEN POSUSTA SECONDED THE MOTION. MOTION
CARRIED UNANIMOUSLY.
Jeff O'Neill stated that from the staff's point of view this purchase was at a reasonable price.
Brian Stumpf stated his concern was with the foHow up cost and Glen Posusta stated his
concern is the City's proposal to put 8-12 townhouse units in that area given the high number of
townhouse units already existing.
13. Consideration of authorizing staff to sign off on completed EA W for Waf-Mart site
Jeff O'Neill provided the background information on this item noting that the proposed Wal-
Mart site is at the intersection of Cedar Street and School Boulevard on the cast side of TH 25
and north of Kjellberg's East. The Council is asked to gi ve staff approval to submit the EA W
worksheet to the EQB. The Council received a draft document. If the Council waits it would
cost Wal-Mart a month in the planning cycle. Mayor Thielen asked what was the status of
Home Depot. Jeff O'Neill stated that he had talked to representatives of Home Depot and they
indicated that they will be looking at other sites in the City. Home Depot stated that having a
side by side arrangement with another major retailer was important to them.
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BRIAN STUMPF MOVED TO AUTlfORIZE STAFF TO FINALIZE AND I)ISTRIBUTE
TIfE W AL-MART EA W VIA TIlE ENVIRONMENTAL QUALITY BOARD BEFORE
APRIL 19,2004. GLEN POSUST A SECONDED THE MOTION. MOTION CARRIED
UNANIMOUSL Y.
14.
Approve oayment of bills for April.
ROGER CARLSON MOVED TO APPROVE PAYMENT OF THE BILLS. GLEN
POSUSTA SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY.
Glen Posusta questioned a hill from Menard's and asked why the City didn't purchase these
materials from the local lumber company. John Simola replied that if the prices locally were
within IO% of the another company the City did buy locally.
Added Items:
Groveland 4th: Brian Stumpf indicated he was contacted by a resident about the area behind the
Groveland 4th development at the north edge of the undeveloped area near the wetlands. The
complaint was that the snow fencing was still up there was a considerable amount of garbage and
debris blowing around. Brian Stumpf noted the good job the soccer club had done in cleaning up in
areas of town..
15.
Adjourn.
RaBBlE SMITH MOVED TO ADJOURN AT 9 P.M. GLEN POSlJST A SECONDED THE
MOTION. MOTION CARRIED UNANIMOUSLY.
Recording Secretary
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MINUTES
SPECIAL MEETING - MONTICELLO CITY COUNCIL
Monday April 12, 2004 - 5:30 p.m.
Members Present:
Roger Carlson. Glen Posusta, Robbie Smith, Brian Stumpf and Bruce
Thielen.
Members Absent:
None
1. Call to Order.
Mayor Thielen called the meeting to order at 5:30 p.m. and declared a quorum present.
2. Purpose of Workshop Session.
The workshop was set to discuss a number of issues related to development such as trunk
charges and building permit fees. Also proposed for discussion was code enforcement.
Buildinl! Permit Fees
The Council received a copy of the building permit fee schedule which is from the 1997
Uniform Building Code. Building Official, Fred Patch explained that as of March 23,2003, the
State had modified the fee schedule by rule to allow for reduced plan review fees for similar
plans. The question that was raised was whether the City was actively making the eflort to
ensure that the builders were aware of the provision relating to reduced plan review fees for
plans that qualified as a "Master Plan." That section of the code was included for COllncil
reVIew.
Glen Posllsta argued that it was inappropriate for the City to collect the full plan review fees
when the City did not disclose that there was an option available to the builder for a paying a
reduced amount. The position of Fred Patch is that since it is a provision of the code the
builders are aware of it and it is the builder's obligation to submit a plan that meets the criteria
for a "Master Plan" thus qualifying for the reduced plan review fee.
Glen Posusta felt it was a philosophical question. The City has a monopoly on issuing building
permits and he noted a reservation on the part of the City of addressing this provision of the
code. He felt this borders on being unethical as he did not believe the builders were aware of
this provision. Because the City has no competition there is no effort to get this information Ollt
to the public. Brian Stumpf felt that the city competes with other cities for development and
that was sufficient motivation to keep building fees at a reasonable level. Glen Posllsta stated
he had contacted a number of cities regarding this provision for reduced plan review fees and
even some of the cities were not aware of this provision.
Glen Posusta also questioned Fred Patch's statement that by providing this information to the
builders, the city would lose money and for that reason he was not putting the information out.
Fred Patch responded that he is doing what is typical of other cities.
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Special Meeting Minutes - 4/12/04
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In 1997 the City looked carefully at the fees they were charging and at that time had set up their
fees with a cost of living adjustment factor. Rick Wolfsteller pointed that the City is trying to
recoup as much as possible from the developers the actual cost of developing rather than having
the taxpayers pick it up. The question is who should pay for development cost? Jeff O'Neill
stated that the provision requires the master plan comply with certain criteria and that would
mean that there would be less building department time spent in plan review. With a master
plan the City would not be getting as much revenue but also would not be spending as much
time in plan review. Glen Posusta questioned how closely the Building Department scrutinizes
each building plan that is submitted.
Both Glen Posusta and Matt Brokl stated that no illegal action has taken place. Glen Posusta's
position is that there should be something on the building permit application to make the
builders aware of this provision. Fred Patch responded that the builders are aware of it but
Glen Posusta felt the City should take the initiative in letting the builders know. The City
should be doing what they can to help things along and not setting up roadblocks. Brian
Stumpf commented that even with the building fees the City charges, construction has not
slowed down. Matt Brokl suggested as part of the application material, you could have a
question, "Is this a master plan?" If the box is checked, then the building department know it
needs to conduct a review to verify it meets the requirements of a master plan. Mayor Thielen
felt that suggestion was simple and could easily be accomplished.
.
Fred Patch reiterated that if the City does this and actively promotes the master plan provision it
will reduce the mnount of single family fees as well as townhome fees. Glen Posusta pointed
out that only the plan check portion of the building fee would be reduced. Matt Brokl
suggested that perhaps one reason why builders may not utilize the master plan provision is that
might impugn their image as a custom home builder. Jeff O'Neill questioned if the plan check
fee was reduced could the building permit fee be increased?
The consensus of the Council was that the issue could be resolved by adding a check box to
indicate whether or not the builder was submitting a master plan. Glen Posusta felt the city
should provide more explanation of the provision
Trunk Fees
Jeff O'Neill provided background information on the trunk fee policies stating that the purpose
in establishing the trunk fees policy was to have the developers pay a proportionate share of the
cost. Where platted lots were part of a redevelopment project credit was given for previously
charged trunk fees. However if the use of the property was intensified then additional trunk
fees would be required. Emerald Estates and Morning Glory were cited as examples.
.
Bret Weiss stated the assumption on this was because a lot was platted it had paid for the trunk
fee charges or that the charges were collected as taxes. Bret Weiss said the distinction was
undeveloped lots -vs- a platted lot. The compromise was to take credit for the platted lots and
if it increased in density anything beyond the number of platted lots then additional trunk
charges would be collected. If they need to replat they would get credit for the lot as 1/3
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Special Mceting Minutes - 4/12/04
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developed. This policy would cause the trunk fees for the Schneider development to bc half of
what was originally proposed. Matt Brokl felt this that this was rare instance for the City where
you had platted lots that didn't have utilities. The general feeling was that if the use intensifIed
then additional trunk fees may be collected.
Glen Posusta asked how 224 East 4th Street would be handled. Staff replied that if the use was
intensified additional trunk charges would be collected. The Council supported the trunk fee
policy and its application on platted lots.
.
Code Enforcement
Jeff O'Neill explained the information provided on code enforcement and asked for Council
direction on where the need is and what kind of effort staff needs to expend. Jeff O'Neill asked
how the Council wanted to establish standards and enforce the codes. Either change the code or
enforce it. Roger Carlson asked if this was something that could come before the council on a
quarterly basis. Fred Patch indicated that there are data privacy laws that would apply to this
information. Fred Patch submitted a memo relating to code enforcement. Brian Stumpf stated
that a set of procedures has to be followed in getting it cleaned up. Bret Weiss stated there is
concern with liability issues when things are stored in street right-of-way. Bruce Thielen stated
that no other city would allow building supplies or equipment to be placed in the city right of
way. Bruce Thielen stated that the staff is looking for support from the council on their
enforcement activities. If the Council has questions on how stail is enforcing the code, stail
could provide the council with a list of violations and the council could select which ones
would be enforced. Brian Stumpf felt it was important for council members to obey the
regulations. It gives the city a bad image if the community leaders do not comply with the
regulations and he cited the Amax Storage signs.
Fred Patch stated that the conditional use permit covering the sign for Amax storage was poorly
written and made enforcement diflicult since there was no definition as to what was an existing
sign. Fred Patch said the Council could go back and clarify the terms of the CUP for Amax
Storage. Fred Patch stated his concern was more with JME which he felt had egregious
violations but hc felt he could do nothing to enforce the code. Fred Patch stated that because
some of the property owners call Council member Posusta, his ability to do enforcement is
hampered. Enforcement of the ordinance should not be political. Jeff O'Neill stated there is a
mechanism in place where codes can be changed if the Council doesn't believe that a certain
provision of the code should be enforced but the City should be consistent in enforcement.
.
Going back to the Amax sign, Brian Stumpf noted that the sign on the telephone was posted
some time after the CUP was approved. Although John Simola didn't notice the particular sign
in question, he pointed out that any signs in the public right-of-way are a violation of the sign
ordinance nor does the ordinance allow signs to be affixed on telephone polcs. Fred Patch
expressed his concern about people calling the council members when an ordinance violation is
being enforced. Staff did not feel that council members should be used as a means to bypass
enforcement action. Glen Posusta in his role as council liaison to the Planing Commission
could bring areas of code that were considered questionable before the Planning commission to
be amended.
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Special Meeting Minutes ~ 4/12/04
Matt Brokl stated it appeared to be the consensus of the Council that the staff come up with a
list of violations. If the violation is a safety hazard the city has an obligation to take care of it.
Bruce Thielen brought up the suggestion of using administrative permits and fines. Fred Patch
said he didn't want to do that. Bruce Thielen suggested doing the spring sweep before Junk
Amnesty Day and noted that enforcement officers need to be prudent. It was suggested having
a community service officer to work in the area of code enforcement. Fred Patch said he could
be bring an intern in tomorrow to handle the code enforcement.
Glen Posusta asked about Junk Amnesty day and why businesses were excluded. John Simola
indicated the City couldn't handle it. Glen Posusta suggested limiting the items, similar to what
they currently do. Brian Stumpf concurred with Glen Posusta. John Simola stated as it is now
there is between 400-500 residents coming in and the City physically can not handle any more.
Glen Posusta suggested another day be set aside for the businesses. John Simola recommended
the issue something the recycling committee should look at. John Simola stated a number of
communities have quit conducting junk amnesty days such as Otsego.
Glen Posusta said people come to him because some times stafl makes it difficult for people to
come to them to resolve a problem As far as code enforcement, the staff will complete the
sweep before Junk Amnesty Day and will come back with a list of violations for Council
consideration.
Workshop was adjourned at 6:45 p.m
Recording Secretary
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Board of Review Minutes - 4/12/04
MINUTES
SPECIAL MEETING - MONTICELLO CITY COUNCIL
BOARIl OF REVIEW
Tuesday, April 13, 2004
Members Present:
Roger Carlson, Glen Posusta, Brian Stumpf and Bruce Thielen.
Members Absent:
Robbie Smith
1. Call to Order.
Mayor Thielen called the Board of Review to order at 7 p.m. and declared a quorum of the
Council present.
2.
Board of Review - Wri2:ht County Assessor Office.
Greg Kramber and Dan Weber from the Wright County Assessors Office were present and
explained the purpose ofthc Board of Review. Only the valuations set for 2004 would be
reviewed at this meeting. Valuations from previous years or questions on actual taxes would
not be addressed at this mceting. Dan Webcr explained the 2004 assessment for the City of
Monticello pointing out that residential land and buildings increased approximately 4%;
commcrcial and industrial land increased by approximately 20%; commercial buildings
increased approximately 5%; apartmcnts increased by approximately 5% and agricultural land
values increased by approximately 20%. 900 parcels in Monticello wcre rcviewed by the
Assessors Office this past year.
No residents had made an appointment with the Assessors Office and none were present at the
Board of Review. Dan Weber indicated he did receive a number of calls and letters relating to
valuations.
Dan Wcber rcad a lettcr from Jay Morrell protesting the valuations set for parcels 155-500-
142203 and 155-500-142209 arguing that the restricted access from TH 25/Sandberg reduced
the value of the property. The property in qucstion is valucd at $3.75/sq. ft. which is in line
with the other properties. The Assessors Office cited other sales of commercial lands with
prices ranging from $6/sq. ft. to $IO/sq. ft. Dan Weber noted that there was no increase in the
building value only the land value.
BRIAN STUMPF MOVED THAT NO CHANGE BE MADE IN TIlE VALUATION FOR
PARCELS 155-500-142203 AND 155-500-142209. ROGER CARLSON SECONDED THE
MOTION. MOTION CARRIED WITH GLEN POSUST A VOTING IN OPPOSITION.
Glen Posusta stated the reason for his vote in opposition was that he felt the land values were
too high. He did not believc a property that receivcd improvements such as sewer and water
years ago should be valued as highly as property that just recently received improvements
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Board of Review Minutes - 4/12104
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since the cost of the improvements are higher. Greg Krambcr, Wright County Assessor
provided a number of examples showing the land values and indicated that the valuation set
for this property was reasonable based on other land values.
Dan Weber then read a letter from Jay Morrell protesting the valuation on Jots in the Oakwood
Industrial Park; parcel numbers 155-018-003060, 155~018-003071 and 155-018-003070. Dan
Weber noted that one of the lots was vacant and the other two contained pole sheds. The
vacant parcel had a value of$.65/sq. ft. and the other lots had a value of$.75/sq. ft. The three
parcels combined had a total of 10.75 acres. Greg Kramber did note that with industrial land
there were anum ber of vacant buildings county wide and because of that they tried to keep the
increase to industrial buildings minimal.
BRIAN STUMPF MOVED TO HAVE THE ASSESSOR MEET WITH THE PROPERTY
OWNER TO REVIEW THESE PROPERTIES PRIOR TO THE NEXT REGULAR
COUNCIL MEETING. ROGER CARLSON SECONDED THE MOTION. MOTION
CARRIED UNANIMOUSLY.
Dan Weber then review three properties that he had received calls and had gone out to
examine the parcel.
.
155-142-004110 - 9711 Woodside Court: This is new construction that is in tax forfeiture.
The interior of the structure was not finished and therefore he was recommending a reduction
in value from $150,300 to $102,200.
ROGER CARLSON MOVED TO APPROVED THE REDUCTION IN VALUE FOR 155-
142-004110,9711 WOODSIDE COURT FROM $150,300 TO $102,200. BRIAN STUMPF
SECONDED THE MOTION. MOTION CARRIED lJNANIMOUSL Y.
The next parcel reviewed was 401 Front Street, 155-113-001010. The amount of river
frontage was reduced from 160 feet.
BRIAN STUMPF MOVED TO REDUCE THE VALUATION fOR 401 fRONT STREET,
155-113-001 010 FROM $59,000 TO $52,000. ROGER CARLSON SECONDED THE
MOTION. MOTION CARRIED UNANIMOUSLY.
The remaining parcel that was reviewed was 318 West Broadway, 155-010-037090 which was
the site of the Broadway Kwik Stop. The building had a rental unit in combination with the
business. The owner has removed the rental unit and converted the space to convenience store
use. The assessor was recommending at reduction of 25% of the value of $40,900 or $10,225.
.
ROGER CARLSON MOVED TO APPROVE THE REDUCTION IN VALUE OF
$10,225.00 FOR 318 WEST BROADWA Y, 155-010-037090. BRIAN STUMPF
SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY.
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Board of Review Minutes - 4/12/04
Greg Kramber and Dan Weber briet1y summarized their efforts in the City of Monticello.
Many of the residents questions and concerns were addressed by the Assessor's office on a
one to one basis prior to the Board of Review.
3.
Adjourn.
The Board of Review adjourned at 7:30 p.m.
Recording Secretary
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Council Agenda - 4/26/04
SA. Consideration of aDDroving new hires and departures for MCC and City Hall. (RW)
A. REFERENCE AND BACKGROUND:
The Council is asked to ratify the hiring and departures of employees that have occurred
recently at the MCC and City Hall. As you recall, it is recommended that the Council officially
ratify the hiring of all new employees including part-time and seasonal workers.
B. AL TERNA TIVE ACTIONS:
1. Ratify the hiring of the part-time employees as identified on the attached list.
C. SUPPORTING DATA:
Lists of new employees.
NEW EMPLOYEES
.
Name
Waste, Sheryl Lee
Title
Guest Serv I
Department
MCC
Hire Date Class
3/22/2004 part-time
TERMINATING EMPLOYEES
Name Reason Department Last Day Class
Baltos, Nick season ended Parks 2/27/2004 part-time
Binette, Yvonne season ended Parks 2/22/2004 part-time
Brower, Deborah voluntary MCC 3/26/2004 part-time
Casper, Brandon involuntary MCC 3/18/2004 part-time
Ceron, Chevon season ended Parks 2/21/2004 part-time
. Connoy, Amie season ended Parks 2/19/2004 part-time
Henningson, Joshua season ended Parks 1/18/2004 part-time
Hertwig, Summer season ended Parks 2/28/2004 part-time
Larson, Anthony season ended Parks 1/17/2004 part-time
Lewis, Kenndy voluntary MCC 3/19/2004 part-time
Noll, Greg 6 month term ended Building Inspectn 3/26/2004 temporary
Pearson, Natalie voluntary MCC 2/29/2004 part-time
Peterson, Kristine season ended Parks 1/7/2004 part-time
.
employee councillist.xls: 4/12/2004
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Name
Zimmerman, Theron
Name
Waste, Sheryl
Fossum, Bonnie
Pearson, Bill
Young, Rebecca
NEW EMPLOYEES
Title
Stock/cashier
Department
Liquor
Hire Date Class
4/14/2004 part-time
TERMINATING EMPLOYEES
Reason Department Last Day Class
voluntary MCC 4/2/2004 part-time
vOluntary MCC 3/19/2004 part-time
voluntary Liquor 4/16/2004 part-time
involuntary City Hall 4/26/2004 part-time
employee councillist.xls: 4/21/2004
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Council Agenda - 4/26/04
58. Consideration of approvinf; proposed settlement agreement on Douglas Franks
assessment an peal. (RW)
A. REFERENCE AND BACKGROUND:
On March 22, 2004 the Council met in closed session with the City Attorney to discuss a
settlement in the Douglas Franks appeal of his assessment for the CSAH 75 Improvement
Project. The City Attorney has submitted for Council approval the settlement agreement signed
by the Banks..
B. ALTERNATIVE ACTIONS:
1. Move to approve the settlement agreement as discussed in the closed session and as
submitted by the City Attorney.
C. STAFF RECOMMENDATION:
It is the recommendation of the City Administrator and City Attorney that the Council approve
the settlement agreement on the Franks assessment appeal.
D.
SUPPORTING DOCUMENTATION:
Copy of settlement agreement.
.
.
.
STATE OF MINNESOTA
DISTRICT COURT
COUNTY OF WRIGHT
TENTH JUDICIAL DISTRICT
Case Type: Special Assessment Appeal
Douglas A. Franks and
Diana L. Farm-Franks,
Court File No. C3~03-3945
Plaintiffs,
vs.
STIPULATION OF
SETTLEMENT
City of Monticello,
Defendant.
The parties hereto stipulate and agree as follows:
1.
As reimbursement for driveway repairs and other project impacts, City will pay
Plaintiffs Two Thousand One Hundred and No/IOO ($2,100.00) Dollars within fomieen (14)
days of City Council approval of this Stipulation.
2. Plaintiffs dismiss this assessment appeal and acknowledge that the assessment is
in accordance with applicable law. The parties will sign and file with the Court a Stipulation of
Dismissal with Prejudice and without costs awarded to either party.
3. The City's Public Works Director will make a reasonable effort to get the Project
Contractor to perform additional work on the Franks' driveway at a reduced cost
Dated:
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111296
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Dated:
111296
CITY OF MONTICELLO
By:
Bruce Thielen, Mayor
By: ~~___."
Rick Wolfsteller, City Administrator
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Council Agenda - 4/26/04
5C. Consideration of approval of annual liquor licenses. (R W)
A. REFERENCE AND BACKGROUND:
In the past the City Council has approved the liquor license renewals in one motion
contingent upon the completion of the application, approval of the state and submission
of proper insurance coverage.
The following licenses are submitted for your approval:
Intoxicating Liquor. On-Sale (fee $3.750)
1. Monticello Liquor, Inc.
2. Silver Fox (Chin Yuen)
3. Duane Lindenfelser dba River City Lanes
4. Comfort Inn/Days Inn
5. .T.P.s Annex
6. I Iawks Sports Bar
7. Monticello Country Club
Intoxicating Liquor. On-Sale. Sunday (fee $200 - set bv statute)
.
1.
2.
3.
4.
5.
6.
7.
8.
9.
Monticello Liquor, Inc.
Silver Fox
River City Lanes
VFW Club
American Legion Club
1.P.' s Annex
Hawks Sports Bar
Comfort Inn/Days Inn
Monticello Country Club
Non-Intoxicating Malt. On-Sale (fee $275)
.
1. Monticello Men's Softball Assn. (April-Aug. $137.50) Council approved
3/8/04.
2. Lions - Rivcrfest Celebration (Council approved 3/22/04)
3. China Buffet
4. Pizza Factory
Council Agenda - 4/26/04
.
Non-Intoxicating Malt. Off-Sale (fee $75)
1. Monticello Liquor, Inc.
2. Maus Foods
3. River Terrace
4. Tom Thumb
5. Holiday Station
6. Super America
7. Cruiser's Gas N Goods
8. Cub Foods
9. 0' Ryan's Conoco
Set-Uo License (fee $275)
None
Club License (fee - set by statute based on membership
1. YFW - $500
2. American Legion ~ $500
.
Wine/StrOlll! Beer Combination License ($1.200)
1. Crostini ' s Grille
B. ALTERNATIVE ACTIONS:
1. Move to approve these licenses effective 7/1/04 contingent upon applicants
providing appropriate certificates of insurance.
C. SUPPORTING DATA:
None.
.
.
.
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5D.
Council Agenda - 4/26/04
Consideration of adoptill1! fiscal policies and procedures - Audit Reoorting. (R W)
A. REFERENCE AND BACKGROUND:
Larsen Allen, the City's auditing firm, will soon begin auditing our financial statements for
compiling our 2003 audit report. As I have noted in the past, 2003 will see a change in how
our financial reporting will be presented and will also include the implementation of what is
known as GASB 34.
With the conversion of our accounting records to new government wide financial statements,
the City will be including new information on all of our capital assets that have been acquired
over the years including all various pieces of equipment, land, and street and utility
improvements. The audit report also will have additional notes to the audit report that will
describe the City's policies and procedures on how we account for our basic revenue and
expenditures, capital assets and how we depreciate them over time, and also information on
our annual operating budget and how it is established. At our auditor's recommendation,
attached is a copy of our fiscal policies and procedures outlining our accounting standards that
the City Council is asked to adopt. The auditors will use this information in conducting their
annual audit, which will start in the next week or so. The policies and procedures manual
was prepared by staff along with input from Doug I-lost, CPA for Larsen Allen. The
document is meant to formally identify how we account for our funds, capital assets and other
functions required by accounting standard board and will help the readers of our audit report
understand how the document is prepared.
B.
ALTERNATIVE ACTIONS:
1. Adopt the fiscal policies and procedures manual as presented.
C. STAFF RECOMMENDATION:
It is thc recommendation of the City Administrator, Finance staff and City Auditor that the
Council formally adopt a fiscal policies and procedures manual. It is our opinion that the
policy presented outlines how the City of Monticello funds are accounted for and identifies
how we plan to report the new financial information required by GASH 34.
D. SUPPORTING DATA:
Copy of fiscal policies and procedures.
.
.
.
City of Monticello MN
FISCAL POLICIES AND PROCEDURES
A. MAJOR FUNDS AND FUND GROUPS
Under GASB #34 requirements, the maior funds that the City is required to show as
major on our annual financial statements will be: General fund, Debt Service fund (all
consolidated), Capital Project fund (all consolidated), Sewer fund and Water fund. Other
funds the City chooses to report as major are: Community Center fund and Liquor fund.
All remaining funds are reported as non-major government-type or business-type
(enterprise) depending on the nature of the individual fund.
B. CAPITAL ASSETS
A capital asset is determined to be that with a cost of at least $5000 per asset and a life
expectancy of greater than one year. Assets with a cost ofless than $500 will be
classified as a supply expenditure. Assets with a cost between $500 and $5000 will be
classified as a small tool and tracked for internal purposes.
The classes of capital assets will be: land, parking lots, buildings, infrastructure,
improvements (other than buildings), machinery and equipment, office equipment and
furniture, and motor vehicles. Construction in Progress will be recognized as an asset but
is not eligible to be depreciated until the project is completed and/or asset is transferred to
the city.
Thresholds applied to capitalized assets will be at least $5000 with the following
exception: Art collections and historical treasures will be considered exempt from
capitalization if they are held for public exhibition or education, is protected and
preserved, and is subject to a policy that proceeds from the sale of collectible items are
used to acquire other collectibles.
Donations of capital assets from an individual or entity are recorded at estimated fair
market value at the date of acquisition for purposes of capitalizing the asset.
Depreciation is the allocation of the cost of a depreciable capitalized asset over its
estimated useful life. Straight-line depreciation will be the method used to allocate the
cost on a monthly basis. Land, easements and construction in progress are not considered
depreciable assets. The determination of usefullifes was made utilizing the following
tables:
REVISED policies and procedures: 4/22/2004
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CITY OF MONTICELLO CAPITAL ASSETS DEPRECIATION SCHEDULE
USEFUL LIFE REAL PROPERTY - CLASS CODE DESCRIPTION
MONTHS YEARS
INFASTRUCTURE
300 25 Infrastructure: Fencinq and qates
240 20 Infrastructure: Imorovements
240 20 Infrastructure: Load Area
240 20 Infrastructure: Parkinq Lots
132 11 Infrastructure: Pathways
240 20 Infrastructure: Roads/Streets (curb, Qutter and sidewalk)
480 40 Infrastructure: Sanitarv Sewer
120 10 Infrastructure: SiQnaqe
240 20 Infrastructure: Storm Sewer
480 40 Infrastructure: Waterlines
VEHICLES
96 8 Dump Trucks, Street Department Trucks
240 20 Fire Trucks
120 10 Snow Plows, Street Sweepers, SludQe Trucks, Sludge Trailer
84 7 ATV
144 12 Tractor, Streets and Parks
60 5 Trucks, Pickups, Vans
WWTP Equipment
180 15 Gravity Belt Thickener, Chlorinator, Digester Cover
Water
300 25 Booster Station, Water Tower, Wells
REVISED policies and procedures: 4/22/2004
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EQUIPMENT
120 10 Bike Park, Indoor Play Structure/MCC
84 7 Black Top Hot Mix
96 8 Brush Cutter, Log Splitter, Trailer, Dump Box, Flatbed
60 5 Cash Register Systems
144 12 Crane / Sewer, Tractors/Parks & Streets
120 10 Election Equipment, Liquor Store Security System
120 10 Fire Rescue Tool
120 10 Fuel Tanks - PW
84 7 Generator, Compressors
240 20 Irrigation Systems
240 20 Office Cubicles, City Hall
180 15 Office Cubicles, MCC & DMV
240 20 Library Book Shelving, Storage Shelving, Reception & Checkout Counters
120 10 Loader, Skid Steere/Black top Planer/Backhoe
84 7 Mower
60 5 Playground EquipmenUParks - Skate Park Ramps
48 4 Seeder / Parks
84 7 Snow Blower, Genie Lift, Rodder Machine
120 10 Walk-In Cooler, Wine Racks, Shelving / Liquor Store
60 5 Router, Compactor, Sewer Camera
120 10 Wheel Loader, Chemicallniection, Iron Filtration Equipment
BLOGS
360 30 Animal Control, Public Works Shop, Old Library, Warming House
480 40 Building Expansion Liquor Store, Original Liquor Store
480 40 Community Center
480 40 Fire Hall
480 40 Library, New
360 30 Pole Building and Garages
480 40 WWTP Administration and Sludge Buildinqs
264 22 Park Concession Stand and Shelters, Chamber Office, Help Center, PW
Office
240 20 Park Gazebo
144 12 Park Log Shelter
360 30 Rental House
IMPROVEMENTS
180 15 Lightinq Systems, Climbing Wall, Wood Floor-MCC
240 20 Office Remodel Soundproofin~ Tiles-Miss. Room
120 10 Guard Hut (skate park), Swan Sculpture, Landscaping
144 12 Hockev Rink, Ball field Bleachers
480 40 WWTP Expansion
REVISED policies and procedures: 4/22/2004
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C. ANNUAL OPERATING BUDGET
The purpose of establishing an operating budget is to ensure the City's annual operating
expenditures are based on a stable stream of revenues.
.
The City follows these procedures in establishing the budgetary data reflected in the
financial statements.
1.
During June and July of each year, the City Administrator provides all department
heads with budget worksheets. Department heads prepare a proposed operating
budget and return the worksheets to the City Administrator for review. The City
Administrator meets with department heads, if necessary, and accepts proposed
budget work papers.
Prior to September 1, the City Administrator submits to the City Council a
proposed operating budget for the fiscal year commencing the following January
1. The operating budget includes proposed expenditures and the means of
financing them.
Public meetings or hearings are conducted in accordance with the state truth in
taxation statutes to obtain taxpayer comments and adopt the final tax levy and
budgets for the governmental, special revenue, enterprise and debt service funds.
The City Administrator is authorized to transfer budgeted amounts between
departments with any fund; however, any revisions that alter the total
expenditures of any fund must be approved by the City Council.
Formal budgetary integration is employed as a management control device during
the year for the general fund, special revenue funds and enterprise funds. Formal
budgetary integration is not employed for capital projects and debt service funds.
Budgets are adopted on a basis consistent with generally accepted accounting
principles. Budgeted amounts will be reported as originally adopted and as
amended by the City Council on the budget to actual financial statements.
Operating budgets are prepared for the following funds: General Government -
general, library, city streets reconstruction, HRA housing and redevelopment
authority, environmental clean-up, Minnesota investment, SCERG (small city
economic recovery grant), CMIF (Central MN initiative fund), shade tree, park,
park and pathway dedication, community center, capital project revolving, EOA
(economic development authority), sanitary sewer access, storm sewer access,
water access, debt service, and Enterprise - water, sewer, liquor and cemetery.
2.
3.
4.
5.
6.
7.
D. REVENUE CLASSIFICATION AND USE
Revenues on the government wide financial statements are classified as general revenues
or program revenues. General revenues typically consist of: various taxes, rental
income, grants and contributions that support the general operations and services
provided by the City and are not restricted for a particular purpose, investment earnings,
and miscellaneous revenues. Program revenues include: special assessments, fees and
charges, fines and forfeits, and grants that are budgeted or indicated for a specific
purpose, activity or program. Fees, Charges, Fines and Other is a broad category of
program revenues that arise from charges to customers, applicants or others who
purchase, use, directly benefit from, or are directly affected by the goods, services or
.
REVISED policies and procedures: 4/22/2004
4
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.
privileges provided. Program revenues are meant to offset the cost associated with the
purpose, activity or program.
The purpose of this revenue policy is to provide a diversified set of revenues to ensure a
stable revenue system for the City, to match similar sources and uses to ensure adequate
funding for various City services and programs, and to ensure equitable funding among
City programs and services.
The City will establish user charges and fees at a level relative to the cost of providing
these programs and services. The charges and fees will be reviewed on an annual basis.
Fees set for user activities, such as recreational programs, will be at a level to move
toward supporting 100 percent of the direct and indirect cost of the activities.
User fees and charges for the enterprise funds (water, sewer, liquor and cemetery) will be
set a level that supports the total direct and indirect costs of the activity. Indirect costs
will include depreciation of capital assets and each fund's share of administrative and
general government costs incurred by the enterprise fund.
For governmental-type funds, the City will record all revenues received within 60 days
after year end (that relate to prior year services) as revenues for the prior year fiscal
accounting period.
.
E. REPORTING LEVEL - STATEMENT OF ACTIVITIES
The government-wide Statement of Activities will report revenues and expenditures at
the function level and by government-type and business-type. Revenues from fees,
charges, fines and other; operating grants; and capital grants will be broken out by:
government-type: general government, public safety, public works, health and welfare,
culture and recreation, conservation and economic development, and interest on long
term debt, and business-type: water, sewer, liquor store and cemeteries.
General Revenues will be reported together regardless of function. Totals will be
separated into government-type and business-type activities. Transfers between
government-type and business-type funds will be shown in this section also.
F. COMPENSATED ABSENCES
Compensated absences will be reported for vested sick leave, vacation, and compensatory
time hours.
Vacation hours are accrued by full-time city employees and part-time employees who
maintain an average of25 hours per week after six months. Non-union employees are
entitled to carryover a balance of one and one-half times their annual accrual at the end of
each year. Union employees are entitled to carryover a balance of twice their annual
accrual at the end of each year.
.
As of April 23, 2001, any employees who reached or reaches an accrual balance equal to
or less than that allowed will lose excess hours remaining as of December 31 of each
year. Exception can be granted to salaried employees providing they make a request in
writing to the City Administrator prior to October I of each year. The request can be
REVISED policies and procedures: 4/22/2004
5
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.
made to receive vacation pay in lieu of hours taken, up to one-half of the annual hours
earned, and will be subject to approval of the City Administrator.
Long-standing employees, who are still carrying balances over the allowed amount of
accrual, can use or buy down the excess hours at a minimum of 100 hours per year per
City Council action of April 23, 2001.
Vacation Severance Pay - Employees leaving City service voluntarily and in good
standing and who provide proper advance notice of two weeks are entitled to receive 100
percent of their remaining accrued vacation leave at their current hourly rate.
Sick Leave hours are accrued by all full-time city employees up to 96 hours per year (or 1
day per month). Sick leave hours earned can be carried over from year to year. If the
balance of accrued sick leave hours reaches 100 days (800 hours) as of October 1 st of
each year, the excess hours will be paid into a city-approved medical savings plan on
behal f of the employee.
As of October 28, 2002, eligible employees who have accumulated above 100 days of
sick leave accrual, will be required to contribute up to 100 hours annually to the city-
approved medical savings plan until the accumulated hours have been reduced to 800
hours or less.
.
Sick Leave Severance Pay - Only days of sick leave accumulated after April 1, 1980,
will be considered for any type of severance benefit. Eligible employees leaving City
service after 5 years of employment shall receive up to 1;4 of their unused sick leave times
their current hourly rate. Eligible employees leaving City service after 10 years of
employment shall receive up to Y:z of their unused sick leave times their current hourly
rate. Employees leaving City service who have accumulated above 100 sick days after
April 1, 1996, will be allowed to receive credit for any days over 100 at the current
hourly rate of pay as a severance benefit. All such payments shall be deposited in a city-
approved medical savings plan account for the employee.
Currently, the City has an agreement with the MN State Retirement System (MSRS)
Health Care Savings Plan. The employee will be notified by MSRS when funds have
been deposited on their behalf and provided with investment options.
Current and Long Term Comoensated Absences - The City estimates that 90% of the
year end balances of compensated absences will be used in the subsequent year (assumes
a first in-first out methodology) and 10% of compensated absences as of year end will be
used in years 2 and thereafter.
G. APPLYING RESTRICTED AND UNRESTRICTED RESOURCES
The city will first use restricted resources to finance qualifying activities. Any remaining
qualifying activities will be financed with unrestricted resources.
.
REVISED policies and procedures: 4/22/2004
6
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.
.
H. ALLOCATION OF INDIRECT EXPENSES
Indirect expenses will be allocated to the funds and departments that share in the expense,
if determinable and possible. If the entire city or many city departments are involved, the
cost will be recorded in the city hall department budget or capital project fund budget.
CLASSIFICATION OF OPERATING AND NON-OPERATING REVENUES IN
ENTERPRISE FUNDS
Operating revenues in an enterprise fund are those that support the day-to-day operations
ofthe activities in that fund. These revenues cover costs such as salaries, supplies,
repairs and maintenance, depreciation, and small tools and equipment.
· Water - user fees (billed quarterly), sale of water meters, Gopher State I-call fees,
inspection fees, water use permits, booster station charges, connect/reconnect fees,
penalties, charges for repairs
· Sewer ~ user fees (billed quarterly), inspection fees, charges for repairs, permits,
penalties
· Liquor -liquor sales (beer, wine, liquor, miscellaneous), gift certificate sales
· Cemetery - sale of grave sites, administration fees, excavation charges, monument
staking fees, memorial program revenues, perpetual care fees
Non-Operating: revenues in an enterprise fund are those revenues that occur from non-
operations of the enterprise activities, including, but not limited to, such items as property
taxes; local, state or federal grants; interest income from investments; property rental;
assessments; and other miscellaneous revenue.
I. IDENTIFICATION AND APPLICATION OF RESERVED AND UNRESERVED
FUND BALANCES
Reserved fund balances indicate the portion of fund equity which has been legally
segregated for specific purposes.
Unreserved, designated fund balances indicate the portion of fund equity for which the
City has made tentative plans.
Unreserved, undesignated fund balances indicate the portion of fundy equity which is
available for budgeting in future periods.
J. DEFINITION OF CASH AND CASH EQUIVALENTS
Cash and cash equivalents include: cash on hand, demand deposits, and short-term
investments with original maturities of 3 months or less from the date of acquisition.
K ALLOWANCE FOR UNCOLLECTIBLE RECEIVABLES
Based on past experience, the City is able to collect almost all of its receivables.
Amounts uncollectible have been immaterial. Based on this history, the City will only
record an allowance for uncollectibles on a case-by-case basis, if needed.
L. INVENTORY REPORTING
The City uses the purchase method of inventory reporting for the liquor store on a "first-
in, first-out" basis.
REVISED policies and procedures: 4/22/2004
7
50
. M. ELIMINATION OF INTERNAL ACTIVITY ON THE STATEMENT OF
ACTIVITIES
The City, as a general rule, eliminates the effect of interfund activity on the government-
wide financial statements. The only interfund activity that will be reported on these
financial statements are those between the two types of activities: governmental and
business-type.
N. APPLICATION OF FASB PRONOUNCEMENTS TO BUSINESS-TYPE
ACTIVITIES
The City generally follows private-sector standards of accounting and financial reporting
issued prior to December 1, 1989 for the government-wide and proprietary fund financial
statements to the extent that those standards do not conflict with or contradict guidance of
the Governmental Accounting Standards Board. The City has the option of following
subsequent private-sector guidance for their business-type activities and enterprise funds,
subject to the same limitation, however, the city elects not to follow subsequent private-
sector guidance.
O. SPECIAL AND EXTRAORDINARY ITEMS
.
The City's policy regarding the financial reporting for special and extraordinary items is
that they will be reported separately on the government-wide financial statements in
accordance with the definitions provided in GASB #34.
...............................................................................
Adopted by the City Council of Monticello this
day of
,2004.
Attest:
Bruce Thielen
Mayor
Rick W olfsteller
City Administrator
.
REVISED policies and procedures: 4/22/2004
8
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.
.
City Council Agenda - 04/26/04
5E.
Consideration to review Greater Monticello Enterprise Fund (GMEF) Loan No. 023
for comoliance with the EDA-GMEF Business Subsidy Criteria. WSI Industries, Inc.,
Applicant. (O.K.)
A. Reference and Backe:round:
The EDA requests the City Council review GMEF Loan No. 023 for compliance with the
EDA-GMEF Business Subsidy Criteria. The GMEF Guidelines state: "The EDA shall have
authority to approve or deny loans; however, within 21 days of ED A approval, the City
Council may reverse a decision by the EDA to approve a loan if it is determined by Council
that such loan was issued in violation of the GMEF Guidelines."
On April 20, 2004, the EDA approved GMEF Loan No. 023 for WSI Industries, Inc. subject
to Council ratification of EDA action. The GMEF loan will assist WSI Industries, lnc, in the
acquisition of the manufacturing property located at 2 I 3 Chelsea Road, Monticello (vacant
Remmele building.) For your review, enclosed as supporting data is the outline used by the
EDA for determination of GMEF public purpose and policy compliance.
The real property acquisition and development loan was approved for $350,000 at a 2.0%
fixed interest rate. Amortization consistent with lender, not to exceed 25 years. Balloon
payment in 5 years. Loan fee set at $200 and GMEF legal fees the responsibility of the
applicant. The GMEF loan will be in a second-position behind the lender, Excel Bank, and in
second position on the real estate mortgage. Collateral, guarantees, and other condition
requirements to be determined and prepared by the EDA Attorney. The real estate acquisition
loan will assist in bringing 46 new full-time jobs to Monticello within two years. At least 90% of
the new jobs to pay a wage of higher than $9.00 per hour, exclusive of benefits, for individuals
over the age 01'20 during the term of the assistance. Annual written reports are required until
termination date. Failure to meet the job and wage level goals require partial or full repayment
of the assistance with interest.
The EDA held a public hearing on April 20, 2004, relative to the approved $350,000 business
subsidy to WSl. The notice appeared in the local newspaper on April 15, 2004, fix
compliance with Minnesota Statutes 2000, ] ] 6J.994.
After review of the EDA outline for GMEF public purpose and policy compliance, the EDA
requests the City Council consider the following actions.
City Council Agenda - 04/26/04
.
B. Alternative Actions:
1. A motion stating that City Council has determined the EDA approval of GMEF Loan
No. 023 for WSI Industries, Inc. was approved without violation of the EDA-GMEF
Business Subsidy Criteria; therefore, Council supports the decision by the EDA for loan
approval.
2. A motion stating that City Council has determined the EDA approval of GMEF Loan
No. 023 for WSI Industries, Inc. was issued in violation of the GMEF Guidelines;
theref()[e, the Council reverses the decision by the EDA for loan approval.
C. Recommendation:
The City Administrator recommends Alternative No.1. The loan approval complies with the
EDA-GMEF Criteria and the City's objective and goals. WSI is a great manufacturing
company with good paying jobs and will occupy a vacant building in Monticello.
D. Sunportine Data:
.
GMEF criteria used by the EDA, preliminary application, and GMEF approval form.
.
2
.
.
.
s"" ~...<z <l>. '\- l' "" ~ 'D f:>. ~
EOA Agenda - 04/20/04
4.
Consideration to review for discussion the oreliminarv GMEF application from WSI
Industries. Inc.
A. Reference and Background:
GMEF Loan Application: See Attachment A.
Request is for a $350,000 real property acquisition and development loan.
Project Summary:
WSI Industries. Inc. is a public held company. The company does precision machining and
assemblies specializing in avionics and aerospace, computer, defense, power systems, medical,
etc. Corporate awards and recognition include Rockwell Collins, IBM, BFG Aerospace,
Polaris Industries, and Raytheon.
WS[ was established in 1950. Taurus Numeric Tool, a Division of WS1, currently leases space
(28,000 sq ft) in Osseo, MN. WSI has a Purchase Agreement on the vacant manufacturing
building located at 213 Chelsea Road (former 49,000 sq ft Remmele building.) The company
has out~grown its facility in Osseo and plans to move into the Monticello facility over the next
six months. The closing date is anticipated the first week in May. See Attachment B.
Projected job and wage goals. See Attachment C. Letter of Commitment from Dan Poppe,
Excel Bank.
Mike Pudil is President, CEO and Paul Sheely is Vice President, CFO. Mr. Pudil has ties to
Monticello as he was Vice President of Remmele Engineering when Remmelc built in
Monticello around 1990. So he's familiar with the building as well as myself and many of the
manufacturing owners of Monticello. He served on the Board of Directors for UMC and
resigned when he became President of WSI.
The EDA should review the preliminary application for compliance with the EDA-GMEF
Business Subsidy Criteria.
ES'rIMATED PROJECT COSTS:
Real Estate Acquisition
TOTAL
$1.900.000
$1,900,000
s~
.
.
.
EDA Agenda - 04120/04
GREATER MONTICELLO ENTERPRISE FUND GUIDELINES
PUBLIC PURPOSE CRITERIA: Must comply with four or more of the criteria listed below,
criteria # 1 being mandatory.
1.
Job Goal:
46 full-time jobs to the City of Monticello within two years of the
benefit date.
Wage Goal: At least 90% of the new jobs must pay a wage of the higher of$9.00
per hour, or at least 160% of the federal minimum wage, exclusive of
benefits, for individuals over the age of 20 during the term of the
assistance. See Attachment B.
Annual reports are required until termination date. Failure to meet job and wage goals require
partial or full payment of the assistance plus interest.
2. Increases the community tax base: Occupies a vacant building and retains the
$1,914,000 - 2004 Estimated Market Value.
3.
Factors:
To assist a new manufacturing business to expand their operations.
Other factors for consideration but no limited to: Nature of business
(manufacturing), potential adverse environmental effect (none), and
compatibility to the comprehensive plan and zoning policy (yes,
acceptable in I-I zone.)
4. Used as a secondary source to supplement conventional financing.
The GMEF is a secondary source of financing for the real estate.
5. LJ sed as gap financing:U sed to encourage growth and job creation within Monticello.
6. Used to assist other funds: Primary conventional lender.
GREATER MONTICELLO ENTERPRISE FUND POLICIES
1. BUSINESS ELIGIBILITY
Industrial business:
Yes.
2
s'C.
.
.
.
III.
IV.
EDA Agenda - 04/20/04
Located within city limits: Yes, Zoned I-I.
Credit worthy existing business:
Yes, See Exhibit C.
$10,000 loan per each job created. $10,000 X 46 = $460,000.
Or $5,000 per every $20,000 increase in property market valuation, whichever is higher.
Criteria: $460,000
n. FINANCING METHOD:
Companion Direct Loan:
All such loans may be subordinated to the primary lender if
requested by the primary lender. The GMEF is leveraged and
the lower interest rate of the GMEF lowers the effective interest
rate on the entire project.
Criteria: The GMEF takes a second position on the real estate mortgage.
USES OF PROCEEDS:
Real property acquisition and development.
TERMS AND CONDITIONS:
Loan Size:
Maximum not to exceed 50% of the remaining revolving loan fund balance.
Cash balance as of April 1, 2004, estimated $750,000. Request: $350,000.
Criteria: $375,000. Recommended: $350,000. Remaining balance
thereafter, $400,000.
EDA Approved - $350,000.
Leveraging: Minimum 60% private/public non-GMEF
Maximum 30% public (GMEF)
Minimum 10% equity of ED A loan
Proposed
Lender
GMEF
Equity
TOTAL
$1,360,000 (71.5%)
$ 350,000 (18.4%)
$ 190,000 (10%) (54% to ED A)
$1,900,000 (99.9%)
<"l
.J
t;c
EDA Agenda - 04/20/04
.
Loan Term: Real estate property maximum of 5-year maturity mnortized up to 30 years.
Balloon payment at 5 years.
Recommended and EDA approved: Amortization consistent with lender, 25 years.
Balloon payment in year 5.
Interest Rate: Fixed rate not less thml 2% below Minneapolis prime rate. Prime rate per
National Bank of Minneapolis on date of EDA loan approval. Prime rate April
20, 2004. 4.0%
EDA approved 2.0%
fixed interest rate.
Loan Fee:
Minimum fee of $200 but not to exceed 1.5% of the total loan project. Paid by
applicant to the EDA within five working days after City Council approval of
GMEF loan. Non-refundable. Loan fee may be incorporated into project
costs. EDA retains the right to reduce or waive loan fee or portion of loan fee.
.
Options:
Minimum fee of $200 or not to exceed 1.5% of GMEF loan ($5,250),
due and payable not later than April 30, 2004.
Recommended and EDA approved Minimum fee of $200, due and payable not later
than April 30, 2004.
Prepayment Policy: No penalty for prepayment.
Deferral of Payments: 1. Approval of the EDA membership by majority vote.
2. Extend the balloon if unable to refinance, verification letter from two
lending institutions subject to Board approval.
Late Payment Policy: Failure to pay principal or interest when due may result in the loan being
immediately called.
Interest limitation on guaranteed loan~ot applicable.
Assumability of loan: None.
.
4
Sc
EDA Agenda - 04/20/04
.
Business equity requirements:Subject to type of loan; Board of Directors will determine case
by case, analysis under normal lending guidelines.
Collateral:
Personal and/or corporate guarantees (requires unlimited personal guarantees)
as per the GMEF attorney.
As this is a public held company, no personal guarantees will be
requested. This ok'd by EDA Attorney.
Non-performance:
An approved GMEF loan shall be null and void if funds are not drawn
upon or disbursed within 180 days from date of EDA approval.
EDA approval - April 20, 2004 EDA approval - loan becomes null and void October 20,
2004.
Non-performance extension: Not applicable.
Legal Fees: Responsibility of the GMEF applicant.
B.
Rccommendation:
.
Recommendation is to review this information prior to the EDA meeting for discussion
and potential questions. Consideration to approve or deny GMEF Loan No. 023 is the
next agenda item.
c.
SUPDortine: Data:
Preliminary GMEF application, job and wage-level goals, Excel Bank Letter of
Commitment, and a portion of the financials. Annual Report Fiscal 2003 (2002 and
2003) and quarterly February 2004 available at EDA meeting. Also on me is a copy of
the Purchase Agreement, Article of Incorporation, Certificate of Good Standing.
.
5
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.
03/29/2004 16:19
~1o,,1 ",'1''''''",''''_'''''
7634284.g00
TAURUS NUMERIC TOOL
f-lAG!:::. ~L
~~6~r
GREATER MONTICELLO ENTERPRISE FUND
505 wALNUT STREET, SUITE 1
MONTICELLO, MINNESOTA
PRELIMINARY APPLICATION FOR LOAN
APPLICANT: VJ 5~ :rN D\J S TJIl&.\t::..So :s:.~ c:-
FIRM OR TRADE NAME:
BUSINESS ADDRESS: 1'8'\ OS \ ~~.At- fl.O
CITY/STATE: l)'!;seo /fI\N ZIP CODE: 5S'3i-ct
TELEPHONE: (BUS) 7& ~ .., U ... ...,308 (HOME)
DATE ESTABLISHED: IctSO EMPLOYERID# ~1-o(g9/4tLo7
SOLEPROPRIETOR ~CORPORATION _PARTNERSHIP
MANAGEMENT
NAME
~\c:~"O:cL-
~ .."'- .s ,-0.(
TITLE f
HJ;S G.JJf;.O
",pi &.FO
OWNERSHIP %
-
-
PROJECT LOCATION: .z.," c.\ok!t-~ 1It,() MO..a1",'" Irl ' 10
, )( NEW LOCA nON X EXISTING BUSINESS
TOTAL PROJECT COST ESTlMA TE: S I, qoo I 000
PROPOSED USES: REOUEST:
AMOUNT OF LOAN $ ~ cc:o
MATURITY & TERMS
REQUESTED 5 't'~ ~N
APPLICANT'S EQUITY ..-1......... ';o~
LOAN PURPOSE ALaw.. tT.~ of
LAND
EXISTING BUILDING
CONSTRUCTION
MACHINERY CAPITAL
WORKING CAPITAL
OTHER
TOTAL USES: $ '. qu" COD
PROPOSED BEGINNING DATE: ~l$/o'"
ESTIMATED COMPLETION DATE: ' I 6/:3/0&./
I (
TITLE TO
PROJECT ASSETS TO BE HELD BY: 15- OPERATING ENTlT"y"'-' ALTER EGO
PARTICIPATING LENDER: tf.:xc.eL- bJo.Jtr=.. 5"0 s,\?TH $1)(,.,... s. ,"'~CJS "" ~
,
() (Name) (Address)
AtJ Poffe- ~ ~-2.P3z..
(Contact Person) (Telephone #)
. PRESENT # OFFT EMPLOYEES "",/(p PROJECTED # OF FT EMPLOYEES (within 2 years) 50
PROJECTED AVERAGE WAGE PER HOUR: ,.,. ()C)
ADDITIONAL PROJECT INFORMATION:
APPLICANT SIGNATURE: iiI?
DA TE SIGNED: 3/LfD"/
..pJO.~
vJS:1= .::oJf)tJ 5-'<<18.5
f
f:\o II iek\oll ie\wordoroc \edaagendas, G MEFore J i mA DO, frm
SE
03/29/2004 16:19
~~ l' '~..Hj'liln flP'.M~;.obm
7634284300
TAU<US .ru~IC TlJ~o.~~ 00
- ~
J .,
,.. ,
LLJ
DEVELOPMENT SERVICES
Economic Development Director
Phone:
Fax:
Email:
(763) 271-3208
(763) 295-4404
o IIi e.kortmchak1ti:C i _ monticello- mn. us
CITY OF MONTICELLO, MINNESOTA
~
MONTICELLO
I
JOB AND WAGE LEVEL . EXISTING JOBS
Please indicate number of current employees at each level and indicate the corresponding benefit level.
Monticello City Hall, 505 Walnut Street, Suite I, Monticello, MN 55362-8831 · (763) 295.2711 · Fax: (763) 295-4404
Office of Public Works, 909 GolfCoune Rd., Monticello, MN 55362. (763) 295.3170. Fax: (763) 271-3272
52.
Apr, 14. 2004 11:16AM
eXCel ~ANK MINNe~UIA
No, LV I~ r. L/ LL
.
COMMERCIAL REAL ESTATE
Date: April 14, 2004
,Relationship Manager: Natalia Armitage
O-ti~
c.
WSllndustries, Inc.
18151 TerritDrialRoad
OssGO, MN 55369
II' Risk Rating: 4A
Customer Name:
Address:
Purpose of Presentation: -Approve a new $1,520M eRE loan for acquisition financing on a 49,000 sf
Industrial building located at 213 Chelsea Road, MontiCello, MN
-Amend financial covenants
.Cross default proposed facility with existing Revolving Credit facility
Relationship: Existing customer
Customer since: December 4, 2002
Project Location: 213 Chelsea Road
Monticello. MN
'"
Proposed Credit
Borrower: WSllndustries, Inc.
Amount Option 1: $1,520,000
Option 2: $1,360,000 (The company is currentiy woridng with the City of Monticello to
provIde up to S350M, 3.25%, eRE loan secured by a 2nd REM on the subject property. In
the event that the City of Monticello's 2IllI REM financing Is provided, the Borrower's equity
In the project will be reduced from 20% to 10% and the Bank's Joan amount will be
redueecl from 80% of the purchase price to 72% of the purchase price)
Loan Type: Ballooning commercial real estate term loan
Term: 10yea~
Advance Fonnula: The lesser of i} 80% of the appraised value; or i1) 80% or the purchase price
Cash Investment: Option 1: $380,000. (20% of purchase price)
Option 2: $190,000. (10% of purchase price if the City of Monticello provides low interest
rate subordinate financing described above)
Amortization: 25 years
Payment Requirement Monthly payment will be a fixed principal and interest payment based on the Joan
rate and a 25 year amortization.
.>I Interest Rate: The 5-year US Treasury eMI index + 2.50% fixed for 5 years (currently at 5.20%) and re-
priced at the then 5-year US Treasury CMllndex + 2.50% for an add~ional 5 years.
0.50% ($8,400)
First real estate mortgage and assignment of leases and rents on land and improvements
located at 213 Chelses Roael, Monticello, MN.
N/a (PUblicly traded company) '.
Acquisition financing on a 49,000 sf indumal building located at 213 Chelsea Ro~d,
Monticello, MN. The borrower as outgrown their existing facility in Osseo, MN. They plan
to relocate their headquarters and production operations to the proposed facility in
Monticello, MN. . >
Fee:
Security:
.
Guaranty:
Purpose:
.
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Apr. 14. 200411:16AM
EXCEL BANK MINNcSUIA
No. L U / ~ r. j/ LL
Current Proposed Proposed Net
commitment chanae commitment Participations commItment
WSllnduatril&, Inc.
ProDOsed CRE loan $-(). 51.520,000 $1520,000 $-0- $1 520,000
Une of Credit (Note #200350) $1.000,000 ~. $1,000.000 $.0- $1,000.000
ACH EXDosure (#201990T $125.000 $-0- $125,000 $125.000
Total $1.125.000 $1.520 000 $2,645,000 $-(). $2.645,000
Related Loans
None $-0- $.0. S.O- $-0. $.0-
Subiect to LLL ~ $1.000,000 $1,520,000 $2,520,000 $-0- 52,520,000
.ACH eXposure is not included in LLL
Deposit Account Information:
Account #
200360
200370
200410
TOTAL
Account Type
Checking
Checking
Savings
YTD Averace Collect Balances
$ 393,248.
$ 16,809.
$1.097,216.
$1,507,273.
General Conditions:
Appraisal:
To be completed by J. Scott Renne
Phase I to be completed by Peer environmental
To be provided by Title Company satisfactory to the bank insuring the
bank's priority lien position
Officer site visn
Environmental:
Title:
Inspection:
Cash Investment:
Option 1: $380,000. (20% of purchase price)
Option 2: $190,000. (10% of purchase price If the City of Monticello
provides the suborc/inate financing)
Nfa. Owner occupied building
-Interest and principal to be billed monthly
..Corporate accounts to be maintained at Excel Bank
1 % on annual principal reductions in excess of 10%.
Annual audited financial statements (within 90 days) and monthly
interim financial statements (within 30 days)
Lease Requirement:
Special Conditions:
Pre-payment Penalty:
Reporting:
2
St:=.
.
.
.
Ap r. 14. 2004 11: 16AM
EXCEL BANK MINNESOTA
No.2079 P. 4/22
')k
Covenants:
With the building acquisition, we will add a minimum DSCR to the existing covenants. In addition, we will
need to amend three of the existing covenants (DebVTNW, Current Ratio and CAPEX) as outlined below to
allow for the building acquisition.
~venant Measured: I Existina Prooosed Actual *' Proforma Proforma
Covenant Covenant 8/31/03 2/29104 8/31/04 8/31/05
!!l!9llB ~
'BidaAmi BidOAmi
Min.NW QuarterlY S6 850M S6.650M $7.392M $7,315M S7,012M $7.299M
DebtITNW Quarterly <1.0x < 1. 75x .SOx .54x 1.41x 1.24x
Current Quarterly ~ 1.9Dx ~ 1.751 2.67x 3.1 Ox 2.07x 2.48x
Ratio
Maximum Annually ~ $750M ~ S850M $161M 140M S850M $124M
CAPEX*
Min DSCR Annually Nla ~ 1.0Ox 1.39x 2.4Ox 1.21x 3.29x
(FYE'D4)
~ 1.25x
(ffi 'D5 &
thereafter\ )
-CAPEX covenant is net of 2004 building acquisitIon
-In addition to the financial covenants outlined above, the proposed facility will be crOSS defaulted with the
Borrower's revolving credit facility (Note #200350).
Definitions:
1) Net Worth - as defined in the Loan Agreement is the aggregate of capital and surplus of the Borrower. all
determined in accordance with generally accepted accounting principles.
2} Tangible Net Worth - as defined in the Loan Agreement is net worth less any intangible assets including
patents, trademarks, trade names, copyrights. licenses, goodwill, and deferred charges.
3} Debt Service Coverage Ratio (DSCR) - defined as EBITDA less Distributions/P&1.
RepavmentSources:
Primary: Cash flow from operations
Secondary: Refinance by another lender
Tertiary: Uquidatlon of collateral
Risk Retina Rationale
A .4A" risk rating is appropriate based on the following:
. Considerably Improved financial posi~on of the Company, The Company has returned to profitability I
reduced debt substantially and improved financial ratios as of FYE 2003.
. Strong balance sheet, leveraged at O.SOx at FYi: 8.31-03 and O.54x at the slxth-month interim period
ending 2-29-04.
_ Good liquidity and working capital position with $900M in cash at FYE 8-31-03 and $1.2MM at the sixth-
month interim period ending 2.29-04.
_ Strong collateral margin with no outstandings on the line of credit for the past 12 months
.. The company's management is experienced. proactive and dynamic and has taken appropriate steps to
reposition the company to face the challenges of an economy In recession as well as risks associated with
concentrations _ within industry segments and with individual customers - as are typically found In the
borrower's business
- The facility is non-recourse
.:.
3
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Apr, 14. 200411:17AM
EXCEL BANK MINNESOTA
No. :LU I~ r.,1 LL
.
" Lack of consistent earnings and cash flow coverage of debt service prohibit a 3 rating at this time.
. Customer concentration with Polaris (73%) and Rockwell (10%).
. Sufficient historical and pro-forma cash flow to support the companies existing debt service requirements
and the proposed mortgage. Six-month annualized EBITDA, less annualized dividends, proVides a 1.58x
coverage; pro-forma 2004 ESITDA provides a 1.21x coverage (this includes the borrower canying both
facilities during FY 2004): and pro-forma 2005 EBITDA provides for a 3.29x coverage (this includes siXa
months of canying both facilities until the old lease expires in February 2005).
Policy Comoliance
Exceptions to Policy: None
Exceptions to Guidelines: 1) L TV exceeds the guideline maximum of 75%. Mitigated by the property being
owner occupied and the Company showing sufficient historical and profonna
cash flow to service the proposed debt at 80% LTV. Profonna 2004 EBITDA of
$737M provides a DSCR of 1.21x (including both facilities) based on the
companies existing debt service requirements and the proposed mortgage
amortized over 20 years (although the bank is proposing a 25 year amortization),
Pro-forma FY 2005 EBITOA of $1,902M provides for a DSCR of 3,29x coverage
(includes 6.months of carrying both facilities)
Annualized 6-month
Darlod ending Preafonna Prcrfonna
FebruaIV 29.2004 ~ 2005
EBITDA S1,OOOM $ 737M Sl,902M
. Less: Dividends ( 382M) ( 383M) { 400Ml
Cash Available for OS $ 6l8M $ 354M S1,S02M
Debt Service Requirements:
Proposed mortgage (20 yr amort /5,2%) P&I $ 123M $ 31M (3mos) $ 123M
Existing CML T 196M 196M 268M
Interest 72M 66M 66M
Total DSR $ 391M $ 293M $ 457M
DSCR 1.58x 1.21x 3,29x
2) Proposed pricing and fee do not meet guidelines for a 4A credit. Excel Bank
matched a competitive offer in order to get the deal.
..
.
LTV: ~80%
CREDIT ANALYSIS
PropertY Ownershlc and Manaaement
The proposed facility will be 100% owner occupied by WSllndsutries, Jnc,
WSllndustries, /ne, performs precision contract machining for the aerospace, communications and
industrial markets. The major portion of the company's revenues is derived from machining work for the
aerospace/avionics industry and 18creational vehlc/es markets. The common stock of the Company is
traded on the NASDAQ Small Cap Market SystBm under the symbol WSCL As of March 30, 2004 the stock
was trading at $2,60 with a 52.week high of $3.49 and a 52-week low of SO.99. Market capitalization is
reported' at $6.64 million, The stock is thinly traded with nominal activity.
4
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A p r. 14. 2004 11: 17 AM
EXCEL BANK MINNESOTA
No.2079 P. 6/22
Management:
Chainnan: George J. Martin
President CEO & Director. Michael J. Pudil
VP Treasurer and Assistant Secy.; Paul D. Sheely
Secretary: Gerald E. Magnuson
George J. Martin (55) has served as the Chalnnan of the Board since July 1993. Prior to that, he served as
the company's ceo from December 1983 to January 1985. Mr. Martin was the President, CEO and
Chainnan of PoWCon. Inc.. a manufacturer of el&ctronic Wilding systems from 1987 to October 1995 where
he now serves as an independent consultant.
Michael J. Pudil. (54) has been the President CEO and Director of the company since November 1993. Prior
to that Mr. Pudil worked for Remmele Engineering, Inc. ("Remmele") for 9 years. Remmele is a contract
manufacturer primarily Involved in machining metal. Mr. Pudil served as the General Manager and VP and
General Manager of the Production Division.
Paul D. Sheely (43) joined the company in 1998 as VP of Finance. From 1996-1998 he served as the CFO
of Grasbey Medical, Inc.. a medical device manufacturer of volumetric infusion pumps.
Gerald E. Magnuson (72) has served as the Secretary since 1961 and as a Director from 1962 to 2001. He
is a retired partner of the law firm of Lindquist & Vennum P.L.L.P., Minneapolis, MN.
Lease Analvsis
Nla. WSI Industries, Ine. will occupy 100% of the building.
Summary Financial Results - WSllndustries, Inc.:
(OOO's) 1m
Revenue $21,550
ESlTDA $2,299
EBITDA MargIn 10.67%
Net Income $261
Bank Debt $9.882
Total Debt $16,261
TNW $2,507
DebtfTNW 6.49x
EBITDA I Interest Expense 4.78x
EBITDA / OS 1.05x
~
1$32.157
4$3,545
11.02%
$639
$7,949
$14,486
$2,627
5,51x
3.55x
2.87x
2001
2$20,877
5$2,046
9.80%
($1,193)
$3.430
$8,586
$1 An
5.81x
2.49x
O.70x
2002
3$12,948
8$1.153
8.90%
($813)
$1,025
$2.860
$2.375
1.20x
3.18x
1.57x
2003
3$10.793
7$1,296
12.01%
$453
$844
$1.782
$2.965
0.61x
10.45x
1.76x
1The 49% increase in revenues was due primarily to a full year of operations of the Taurus Numeric Tools.
Inc. ("Taurus") and Bowman Tool & Machining, Inc. ("Bowman"). Taurus is a precision contract machining
company serving the aerospace and avionics industry. Bowman Is a contract machining company serving
the construction industry. Taurus was acquired on February 15, 1999 and Bowman was acquired on August
6, 1999. Bowman has since been sold in response to Deere & Co.'s ("Deere") decision to move its
constnJctlon equipment manufacturing faciiity to Mexico.
TThe decline in revenues is due to Deere's decision to consign raw materials for Its manufacturing program.
This change reduced revenues by 113. Economy related factors were responsible for the remaining
contraction in revenues.
3 The decline in revenues is due the Bowman sale in February 2002 and thus the inclusion of only a half-
year Bowman sales in 2002 operations versus a full year in 2001 and versus -().. Bowman sales in 2003
vemus half-year Bowman sales in 2002.
5
51:::
Apr.14. 200411:17AM
EXCEL BANK MINNESOTA
No. 20/9 r. 1/ LL
.
4Excludes a $396M gain on sale of assets. $353M gain from elimination of pension plan and $248M in
severance costs.
sExcludes S123M gain on sale of assets and $151 M due to fair market value impairment of equipment
6Excludes $2,506M lOSS on sale of assets (Bowman sale)
7Excludes $1 OM loss on sale of assets
Interim Results:
Net sales were $2,616,000 for the quarter ending FebnJary 29, 2004, an Increase of 11% or $257,000 from
the same period of the prior year. Year to date sales in fiscal 2004 were $5,422,000 compared to
$4,793,000 in the prior year. The increase in sales for the quarter, as well as the six months, came from an
increase in sales to the Companys recreational vehicle market
Gross margin decreased to 16% for the quarter ending FebnJary 29, 2004 versus 17% in the year ago
period. The slight decrease in gross margin is attributable to higher levels of production supply and repair
expenses. Year to date gross marains were 15% and 18% for the six-month periods ending February
29.2004 and February 23,2003.
.
Selling and administrative expense of $341,000 for the quarter ending February 29. 2004 was $30.000
higher than in the prior year period due to higher professional seNiee costs. Yearto date selling and
administrative expense of $659,000 was $30,000 lower than the comparable prior year period. Selling and
administrative expense for the six-month period ending February 23, 2003 was negatively affected by
$60,000 of costs associated with a proxy contest that the Company was involved in. The proxy contest was
resolved with all costs incurred by the end of the first quarter of fiscal 2003
Interest expense in the second quarter of fiscal 2004 was $15,000, which was $24.000 less than the second
quarter of fiscal 2003 amount of $39,000. The decrease is attributable to reduced levels of debt for the
Company ~ long-term debt at February 29, 2004 was $748.000 compared to 51,213,000 at February 23,
2003. Year to date interest expense is also down for the same reason.
The Company recorded income tax expense at an effective tax rate of 33% and 36% for the quarter and six
months ended February 29, 2004. For the quarter and six months ended February 23. 2003, the Company
recorded income tax expense of 36%.
Liquidity and Capital Resources
On February 29.2004, working capital was $2,277,000 compared to $2,139,000 at August 31, 2003. The
ratio of current assets to current liabilities at February 29,2004 was 3.10 to 1.0 compared to 2.89 to 1.0 at
August 31. 2003. The Company's cash balance increased $294,000 during the first six months primarily
from collections of accounts receivable.
.
The Company renewed its 51,000.000 revolving credit facility with the bank. Interest on the new agreement
is at the bank's prime rate. No amounts have been borrowed since the closing of the original agreement in
December 2002.
On each of November 13, 2003 and February 6, 2004, the Company paid quarterly dividends of $.0375 per
share. The dividend payments for the 2004 fiscal year have totaled $191,000.
It is the Company's belief that its internally generated funds, as well as its line of credit, will be sufficient to
enable the Company to meet its working capital requirements during fiscal 2004.
6
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Apr. 14. 200411:18AM
EXCEL BANK MINNESOTA
No. iU /~ r. ~I LL
. Pro Formas
The borrower has provided pro forma financial statements for FYE Sw31-04 and FYE 8-31-05 which include
the proposed building acquisition.
Fiscal year 2004 pro fonnas result in a break-even year on $11 ,204M in annual revenue. Polaris represents
80% of pro forma revenue (A TV's at 45% and motorcycles at 55%) and Rockwell represents approximately
5% of pro fonna revenue. Included In 2004 pm forma revenue is approximately S900M in a new polaris
part the company has taken on, the crankcase project. FY 2004 expenses include the relocation expense to
the new facility. FY '04 includes $311 M of expense related to relocation and the costs of owning neasing 2
buildings at the same time, resulting in the ~reak-even year. However, the direct operations are. profitable in
2004 excluding the reloCations items.
Fiscal year 2005 pro formas result in $686M in net profit on S15,609M in annual revenue. Polaris
represents 78% of pr forma revenue (A TV's at 50% and motorcycles at 50%) and Rockwell represents
approximately 6.4% of pro forma 2005 revenue. Increased sales are the result of the Polaris crankcase
project which increases to $3.1 MM in revenue in FY 2005 and a new assembly project on the A TV head
with Polaris which accounts for $1.4MM of the 2005 pro forma revenue. The new assembly wort for Polaris
is work Polaris used to do themselves upon receipt of the A TV heads from WSI. They have now given the
assembly work to WSI. Included in FY '05 pro 10nna expenses is $1 09M which is the cost of renting the old
Osseo facility until the lease expires.
Pro forma CAPEX totals $2,750M and include the building acquisition at $1.9MM; $50M of closing costs
related to the new building; 2 new pieces of equipment for the Polaris crankcase project totaling S650M; and
S150M of equipment they may need for the new building.
.
Covers!:!e AnalYsis
This facility will be an owner occupied building. WSllndustries, Inc. will own and occupy 100% of the
building.
WSllndustries, Inc.:
EBITDA
Less: Dividends
Cash Available for OS
Annualized 6-month
period endina
Februarv 29. 2004
$1,aOOM
( 382M)
$ 618M
Pro-tonna
~
$ 737M
( 383M)
$ 354M
Pro-forma
2005
$1.902M
( 400M)
$1,502M
Debt SeNice Requirements:
Proposed mortgage (20 yr amort /5.2%) P&I$ 123M $ 31 M (3mos) $ 123M
Existing CML T 196M 196M 268M
Interest 12M 66M 66M
TotalDSR $ 391M $ 293M $ 457M
DSCR 1.58x 1.21x 3.29x
.
7
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Apr. 14. 2004 11:18AM
EXCEL BANK MINNESOTA
No. 2079 P. ~/n.
Coverage Analysis based on market rents:
Office 12,000 sf @ $6.00 psf (net)
Manufacturing 37,000 sf @ $3.00 psf (net)
Market Rents
::
$ 72,000
$111.000
$183,000
$123,000
1.49x
..
DSR (20 yr amort.l5.20/0)
DSCR
Proiect Analvsis
WSllndustries. Inc. currently leases their production facility located in Osseo, Minnesota that houses its
production and is also its headquarters. The facility is approximately 28,000 square feet and Is leased until
February 2004 with an option to renew for an additional year. The Company has renewed the lease for
another year, to February 2005. This will allow them to continue production and gradually move into the
new facility. They are scheduled to close on the new facility May 1, 2004. Monthly rent is approximately
$9,600 plus operatina expenses and taxes. In addition, the company also leases a storage facility under an
operating lease that expires in July 2004, with monthly rent of $2,013. The company will not renew the
lease on the storage facility when it expires in July.
The company plans to relocate its headquarters and production facility to the proposed loeation. The new
facility Is located in Monticello, MN.
Property Data:
Property Address:
Year Built:
Total Square Feet:
213 Chelsea Road
Monticello. MN
1990 with addition in 1996
Office 12.000 sf
production 37.000 sf
Total 49,000 sf
9.4 acres
Asphalt lot, lighted, space for approximately 150 vehicles
Excellent exposure and access to 1-94 via Highway 25 extt
Lot Size:
Parking:
Location:
Sources and Uses of Funds
Option 1 (Bank financing only)
Sources:
Bank. Loan
Cash Equity (20%)
Total Sources
Uses:
purchase Price $1.900,000
$1,520,000
380.000
$1,900,000
Total Uses
$1,900,000
Option 2 (Bank financing and subordinate financing from the City of Monticello)
Sources: Uses:
Bank Loan (1St REM) $1,360.000 Purchase Price $1,900,000
City Monticello (2nd REM) 350,000
Cash Equity (10%) 190.000
Total Sources $1,900,000 Total Uses 51,900,000
.
Guarantor Analvsis
Nia
8
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Apr. 14. 200411:18AM
EXCEL BANK MINNESOTA
No. 20/9 P. 1 U/D.
Overall Risk Analvsis
The company has been in business for over fifty years and has survived both macro and micro challenges
over time.
Strengths
- Strong proactive management
Long time in business
Strong balance sheet, leverage 0.60x with $900M In liquidity as FYE 8-31-03; and for the 6-month period
ending 2-29.04 leverage is O.54x wIth $1.2M In liquidity.
Improved profitability. The company was able to return to profitability during FY 2003 as a result of
improved margins and exiting low margin business.
Strong coverage ratios as ot 6-months endinQ
EYE 8.31-1>3 2.29-04
EB/TDAllnterest Expense 10.45x 16.16x
EBITDAlCMLTD 1.76x 5.10x (annuallz.edEBITCA)
Total DebtlEBITDA 1.38x 1.63x' (annualized EBrTDA)
. Sufficient historical and pro--forma cash flow to support the companies existing debt service requirements
and the proposed mortgage. Six-month annualized EBITDA, less annualized dividends, provides a 1.58x
coverage; pro-forma 2004 EBITDA provides a 1.21 x coverage (this includes the borrower carrying bath
facilities during FY 2004); and pro-forma 2005 EBITDA provides for a 3.29x coverage (this Includes six-
months of carrying both facilities until the old lease expires in February 2005).
Weaknesses and Mitigators
. Concentrations within industry segments and with individual customers (Polaris Industries (730/0) and
Rockwell Collins (10%)). Payment risk Is mitigated by the financial strength of bath customers. Polaris
has reported sales growth for the nlne.month period ending 9-30-03 on the two prodUct lines (A TV and
Victory motorcycle) in which WSI manufactures parts for. Polaris has been in business for almost 50
years and Rockwell for 70 years. The loss of revenue risk, associated with the concentrations, in the
event Polaris or Rockwell took their business elsewhere is mitigated, for the RVCR, by the asset-based
loan structure. This risk is mitigated for both the RVeR and the term debt by the recent new business
awarded to the company by Polaris ($4.5MM in revenue for FY 2005), and the concentration with
Rockwell decreasing to 5% in FY 2004 and 6:4% in FY 2005.
Non-recourse facility
.. Company will be carrying two facilities (Osseo and Monticello) until February 2005. Mitigated by the
company's pro foona cash flow which shows sufllclent cash flow to service both debt service
requirements on the new facility and lease payments on the existing facility. Six-month annualized
EB/TDA, less annualized dividends, provides a 1.58x coverage; pro-forma 2004 EBITDA provides a
1.21x coverage (this includes the borrower canying both facilities during FY 2004); and pro-forma 2005
EBITOA provides for a 3.29x coverage (this Includes six-months of carrying both facilities untll the old
lease expires in February 2005).
Outstandina Documentation or ReDortina ExceDtions
None
Leaal Counsel
Todd Iliff
Partlcioation
Nla
9
Se
A p r. 14. 2004 11: 19 AM
EXCel ~ANK M1NNt~UIA
I' v I I.. \I I ,
. Analvst Recommendation
Relationshio Manaaer Recommendation
Concur.
Ma
,,{'It. Ci.t) 4{- i"- d
II President
Chances}. Additional Reauirements:
Attachments:
.Historical Financial statement Spreads
.Profonna Financial Statement Spreads
-WSllndustries, Ino Credit Display dated 12.11-03
.
.
10
bt:.
.
APPROVAL OF
G REA TER MONTICELLO ENTERPRISE FUNDS
BY
ECONOMIC DEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO, MINNESOTA
Preliminary Loan Application Approval.
RECEIVED MARCH 29. 2004
Loan terms negotiated and agreed upon between
the developer, the lending institution, and the
EDA Executive Director.
EXCEL BANK. WSI. AND EDA
Formal Loan Application and Financial Statement
analyzed by the lending institution, j ~.., . or City
staff.
EXCEL BANK AND CITY STAFF
Building and Site Plan Preliminary and/or Final Review.
NOT APPUr.ART,E (EXTSTTNCi RlTTLDTNG)
Building Permit approval or construction commitment.
NOT APPLICABLE
Loan documents reviewed and/or prepared by the
City Attorney.
EDA ATTORNEY STEVE BUBUL OR BETH MERCER-TAYLOF
KENNEDY & GRAVEN
ECONOMIC DEVELOPMENT AUTHORITY APPROVAL OR DISAPPROV AL:
eOAN NUMBER: CiMEF LOAN NO. 023 LOAN APPROVED: YES
BORROWER: WSI INDUSTRl~S.. INC.
ADDRESS: 18151 TERRITORIAL RD, OSSEO. MN 55369 DISAPPROVED:
LOAN AMOUNT: THREE HUNDRED FIFTY THOUSAND DOLLARS AND NO CENTS ($350.000) REAL ESTATE
- . -
RATE: FIXED 2.0% INTEREST RATE DATE: APRIL 20, 2004 ACQU!SITION LOAN
TERMS TWENTY-FIVE YEAR AMORTIZATION WITH BALLOON PAYMENT IN FIVE YEARS
FEE $200 DUE AND PAYABLE NO LATER THAN APRIL 30, 2004.
-*** OTHER (SECOND PAGE)
**OTHER (SECOND PAGE)
A motion was made by EDA Commissioner DARRIN LAHR
Greater Monticello Enterprise Funcls in the amoLlnt of THREE HUNDRED
CENTS ($350.000)
WSI INDUSTRIES. INC.
this 20tlijayof APRIL
Seconded by EDA Commissioner
to (approve - R~me)
FIFTY THOUSAND DOLLARS AND NO
dollars and cents to developer
(A MINNESOTA CORPORATION)
200"4
,
ROBBIE SMITH
YEAS: DARRIN LAHR
ROBBIE SMITH
BILL DEMEULES
CLINT HERBST
~~F _~~isbursed__,_"_.___
NAYS: NONE
ABSENT: BARB SCHWIENTEK. RON HOGLUND, ROGER CARLSON
,_~ by Check No. ~___,
EDA Treasurer
CITY COUNCIL MAY REVERSE AN EDA LOAN DECISION WITI.HN 'TWENTY-ONE DAYS OFEDA
APPROV AL. TO CITY COUNCIL, APRIL 26. 2004
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04/21/2004 13:45
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7634284900
TAURUS NUMERIC TOOL
PAGE 02
~.3/4
~R 21 '04 08l19AM ctTY ~ MONTl~O
GMEF Approval
Plio 2
AC~TANCE O~. TF..RMS
I (We) hereby accept the term~ StALed above as approved by tb= Economic Dcvelopmeftl Authority in and for the
City of Mooti.cello-
DATED:
~ftlh';
I /
~//-b/
111"H~.t.. J, (>l4Ji I ~jt.."J....,r / t:"f. fl
J #A..J s.2: .S,J as .. en< rc:;:{/, .z "" c .
'It.. SEE.u"UCUD JOB AJ1tI WAGX LivEI.. CJ.UTION.
SECOIlD rOSI'IION ON J.DL 18'rUl XOl'1'GAO!.
C1m1' LlGAL nES USPOISIItLItt or APl'LIcaI DU! At CtOSlNG.
COLtATiJ.AL ~ COIPOIATI GUARANTIES 01 AS PEa nm InA !'I'roun. (NO la.SOJW, GOAlWfTUS
AS UIS IS A. PUBLIC HI1J) 'COHPAJt.)
LOA1f BICOKIS RUt.L AID VQID OCIOBD .2.0. 200.. IF FUIlDB AU lOT D1SIUISID.IY OCTOBD. 10.
~ICIP4.np CLOSING DATI - !lAY 3 01 4. 2004.
T1lIS LOAN IS to ASSIS. WI'lli 'I'D ACQtJt81TION or A VA.CANt 49 t 000 SQUAd :rOOT )WtUFACl'UU
B'OtL1)ING LOCATED AT 213 Cm..9U lOAD. JIIONTtC!LLO. !!N.
SE:
7.
Public Hearin2 and Consideration of Authorizin2 the Preparation of Plans and
S ecitications for The Prairie Road Reconstruction Pro' ect Ci Pro' ect No. 2003-
02C). (WSB)
.
A. REFERENCE AND BACKGROUND:
The Feasibility Report for the reconstruction of Prairie Road from CSAH 75 west to the
proposed Timber Ridge 3rd development (formerly "Unnamed Townhome" development)
was accepted at the April 12, 2004 meeting with the public hearing set for April 26,2004.
As a condition of the approval of the preliminary plat for the Timber Ridge 3rd Addition
development, located on the west end of Prairie Road, a portion of Prairie Road needs to
be reconstructed from its existing rural section to an urban section. The feasibility study
addressed reconstructing the remaining segment of Prairie Road east to CSAH 75. The
roadway has also been identified to be upgraded to an urban section with curb and gutter,
as part of the City's overall Street Reconstruction Project in 2008. The estimated project
cost totals $762,530, not including the railroad crossing improvements. The project is
proposed to be funded through special assessments to benefiting properties, devcloper's
fees and City funds.
We have included some additional information on the assessment options for the street
since this is the first time we are improving a street with curb and gutter, storm sewer and
sidewalk. These costs are intended to be spread over and above our typical $2,555 street
assessment.
.
An informational meeting for residents was held on April 21, 2004. Enclosed are
comments from that meeting as well as an attendance sheet. Residents questioned the
need for storm sewer, curb and gutter, and sidewalk along both sides of the roadway as
well as assessments for these improvements. These improvements are recommended for
the roadway based on traffic volumes and safety concerns. We are asking the Council to
authorize preparation of plans and specifications for the entire segment of Prairie Road as
outlined in the feasibility report. The residents want to have a rural section
reconstruction feasibility report completed as an alternative.
B.
ALTERNATIVE ACTIONS:
1. Authorize preparation of plans and specit1cations for the reconstruction of Prairie
Road from CSAH 75 west to the proposed Timber Ridge Development.
2. Authorize reconstruction from 1-94 to Hedman Lane to address the Timber Ridge
3rd Addition.
3. Authorize a feasibility report to address reconstruction as a rural section roadway
with one sidewalk.
4. Do not authorize preparation of plans and specifications at this time.
.
(':\/)()( '( "Ad!';,. I \!)~1 W,V ..1.( aUN.(.J( ',-l/,S ..1\ hlJlpllJ-I21(1.,..,.IKL'Jldil /Ienl.do(:
.
.
.
c.
STAFF RECOMMENDATION:
It is the recommendation of the City Engineer that the City to authorize preparation of the
Plans and Specifications as outlined under alternative number 1. This area will benefit
from an urban section reconstruction. The addition of curb should help to slow traffic
and will aid the pedestrian needs through separation. The ditches are flat and culverts are
old. These will likely need to be reconstructed with a rural section. The projected traffic
volumes upon development of all of Timber Ridge will justify the addition of sidewalks
on both sides of the road. The proposed assessments are in line with the improvements
received. At a minimum, the Timber Ridge 3rt! area needs to be reconstructed to
accommodate that development area.
D.
SUPPORTING DATA:
Assessment Options.
(':\/)()('( /,!I,-II,;,. /',/),-1 w,v.../.( ;/<Ol,/.()( '/1/..\' 11/~UI1J.I\0-l22()-I-..JKelldfl IIL'm.doL
.
.
OPTION 3
CITY OF MONTICELLO
PRAIRIE ROAD RECONSTRUCTION PROJECT
APRIL 21, 2004
CITY PROJECT NO. 2003-02C
WSB PROJECT NO. 1488-47
SINGLE FAMILY LOT ASSESSMENT OPTIONS
OPTION 3
This option includes additional assessments for the 3 corner lots that have
secondary access from Prairie Road based on a front foot basis.
Assessments to the 16 lots with primary access from Prairie Road are the same as Option 2.
TOTAL CORNER LOT ASSESSMENTS
ASSESSMENT
STREET CONSTRUCTION $7,665
SIDEWALK $2,883
CURB $5,767
STORM SEWER $3,428
TOTAL $19,743 Total for all 3 lots
Total Per Lot $6,581 per lot
PER LOT ASSESSMENT - SAME AS OPTION 2
ASSESSMENT
STREET CONSTRUCTION $2,555
SIDEWALK $951
CURB $475
STORM SEWER $1 , 1 06
TOTAL $5,087 per lot for 16 lots
TOTAL PROJECT COST SUMMARY
CITY DEVELOPER SINGLE FAMILY TOTAL
ASSESSMENT LOT ASSESSMENT
STREET $340,665 $99,752 $80,013 $520,430
STORM SEWER $85,397 $40,395 $21 ,122 $160,080
WATERMAIN - $43,770 - $43,770
SANITARY SEWER ~ $38,250 - $38,250
TOTAL $426,062 $222,167 $101,135 $762,530
Railroad Crossing Improvements $16,000 ~ 64000
.
Page 1 of 1
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Prairie Road Reconstruction Pro.ject
Information Meeting Summary
A public informational meeting was held at the Community Center at 6 p.m. on Wednesday,
April 21, 2004 for the Prairie Road Reconstruction project. Residents from nine properties along
Prairie Road were present. A summary of the Feasibility Report including proposed
improvements, estimated project costs and assessment options were presented. Residents voiced
concerns over several components ofthe project; some of the key concerns are as follows:
1. The roadway within the Timber Ridge development should not be connected to Prairie
Road as increased traffic would result.
2. Improvements to Prairie Road are due to the Timber Ridge development only and
residents should not be assessed.
3. The roadway is currently posted at 20 mph and residents requested that traffic control
measures such as speed bumps be installed because of high speeds along the roadway.
4. Curb and gutter and storm sewer is not needed and the roadway should be widened but
kept rural with adjacent ditches.
5. Assessments are too high or the project should not be assessed. Property values will not
increase from the improvements if adjacent properties are not kept up compared to their
property.
6. Sidewalk should not be included on both sides of the roadway.
7. Why is 8618 curb proposed and not surmountable curb?
8. What trees will be impacted by the project?
9. The ditches arc adequate and provide infiltration, except for one home at the corner of the
north leg of Marvin Elwood and Prairie Road, where a culvert is buried.
10. What type of townhome units are to be built with the Timber Ridge 3rd Addition
development?
11. Why were the residents not informed before the feasibility study was ordered?
12. The intersection realignment at CSAH 75 is not an improvement.
13. How would parking be restricted to one side of the road?
'-'\
.
.
.
Council Agenda - 4/26/04
8.
Public Hearinl!-Consideration of a resolution adoptinl! proposed assessment roll for
delin uent utili bills and certification of assessment roll to Coun Auditor. (RW)
A. REFERENCE AND BACKGROUND:
The City Council is again asked to adopt an assessment roll for utility billing accounts
which are delinquent more than 60 days and to certify the assessment roll to the County
Auditor for collection on next year's real estate taxes.
The delinquent utility accounts that are included with the agenda are accounts that are at
least 60 days past due and include all new delinquents from the last time we certified
them. In addition to the delinquent amount, the Council also previously approved the
establishment of an administrative fee of $50 per account that is added to each delinquent
assessment. The amounts shown on the enclosed delinquent utilities list include the
additional $50 administration fee for the preparation of the assessment roll.
It is recommended that the delinquent accounts be put on an assessment roll for
certification at an interest rate of 6% as allowed by state statute. As in the past, if any
accounts are paid within 30 days after the adoption of the assessment roll, they can be paid
without the additional interest. After 30 days, payments will be charged interest.
B.
AL TERNA TIVE ACTIONS:
1. Adopt the assessment roll for the delinquent charges as presented.
2. Based on public hearing input, adjust the assessment roll as required.
C. STAFF RECOMMENDATION:
It is stafI recommendation that the Council adopt the assessment roll as presented. All of
the accounts are at least 60 days past due and have been given proper notice of this
assessment hearing and ample opportunity to pay the accounts in full. All utility accounts
were notified that there would be an additional $50 administrative fee attached to each
outstanding balance if the account was not paid by 4:30 p.m. on April 5,2004.
D. SUPPORTING nATA:
. Copy of resolution adopting assessment roll
. Complete listing of delinquent accounts to be certified.
.
.
.
CITY OF MONTICELLO
RESOLUTION NO. 2004-28
RESOLUTION ADOPTING ASSESSMENT ROLL
FOR DELINQUENT UTILITY ACCOUNTS
WHEREA~)', pursuant to proper notice duly given as required by law, the Council has met and
heard and passed upon all objections to the proposed assessment for delinquent utility account
charges,
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF MONTICELLO,
MINNESOTA:
1. Such proposed assessment, a copy of which is attached hereto and made a part hereof, is
hereby accepted and shall constitute the special assessments against the parcels named
herein, and each tract of land therein included is hereby found to be benefitted by the
assessment levied against it.
2.
Such assessment shall be payable in one (1) annual installment payable on or before the
first Monday in January 2005 and shall bear interest at the rate of 6 percent per annum
from the date of the adoption of this assessment resolution. To the first installment
shall be added interest on the entire assessment from the date of this resolution until
December 31, 2005.
3. The owncr ofthc property so assessed may, at any time prior to certification of the
assessment to the county auditor, pay the whole of the assessment on such property
with interest accrued to the date of payment, to the City Treasurer, exccpt that no
interest shall be charged if the entire assessment is paid within 30 days from the adoption
of this resolution.
4. The City Administrator shall forthwith transmit a certified duplicate of this assessment
roll to the county auditor to be extended on the proper tax list of the county, and such
assessment shall bc collected and paid over in the same manner as other municipal taxes.
Adopted by the City Council this 26th day of April, 2004.
ATTEST:
Bruce Thielen, Mayor
Rick Wolfsteller, City Administrator
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Council Agenda - 4/26/04
.
9.
Public Hearing: Consideration of a request for an amendment to a
Planned Unit Development. Applicant: Kevland Homes/Trison
Development. (NAC)
This item is the subject of a special meeting of the Planning Commission
Being held on Monday, April 26, 2004 at 6 p.m. A report of the
Planning Commission action will be given to the Council.
A. Reference and Backaround.
The applicants, developers and builders in the Hillside Farm residential project
along Fenning Avenue, are seeking an amendment to a PUD that was adopted
to permit the platting of an R-1A area with R-1 sized lots. The Council resolution
approving the PUD required that R-1A houses would be built, even though the
lots were allowed to be platted at the smaller R-1 standard.
The builder is seeking the amendment due to constraints in the lot size, and
difficulty meeting the R-1A home requirements. The R-1A standards are a
minimum 1,400 square foot foundation size, and a minimum 2,000 square foot of
finished area. The R-1 standards require 1,050 square feet of finished space,
with 2,000 square feet of finishable area.
.
The applicants argue that their proposed two story model with 1,000 square feet
on each floor meets the finished space requirement, but cannot meet the R-1A
foundation requirement. Instead, they suggest that split entry homes, or walk-out
ramblers are the most likely models to meet the R-1A requirement on these
"smaller" lots. They have also submitted Multiple Listing Service information that
they say shows that two-story homes, such as the models they propose, are the
higher valued buildings.
They propose an amendment to the PUD that would permit them to construct two
story homes with 1,000 square feet per floor. Many of these would be walk-out
homes, so an additional area could be finished in the walk-out lower level. The
applicants suggest that since the City's objective is to create a "move-up"
neighborhood, and that because two-story homes are more valuable than
ramblers or split-levels, the City should grant the PUD amendment.
B. Alternative Actions.
Amendment to a Planned Unit Development for Hillside Farm by altering the
building size requirements.
.
1. Motion to recommend approval of an amendment that would permit
houses in the Hillside Farm plat to be constructed with 2,000 square
Council Agenda - 4/26/04
.
feet of finished floor area above grade, based on a finding that the
applicants have provided adequate evidence that the change will result
in more valuable housing, consistent with the objectives of the R-1A
zoning.
2. Motion to recommend denial of the PUD amendment, based on a finding
that the standards of the R-1A zoning should be adhered to, as
identified in the original City Council resolution.
c. Staff Recommendation.
Staff recommends approval of the amendment, but only with the additional
condition that the developer agree to a minimum value for housing in this
subdivision. Although the developer's evidence points to more valuable housing
in the two-story styles in Wright County generally, this agreement would not
guarantee that the goals of the City's Comprehensive Plan would be met merely
by permitting the developer to build the houses he requests. In exchange for the
accommodation, the PUD agreement should be modified to require a minimum
value. Planning staff would recommend that the value be set at $325,000. This
would place them within the top third in valuation of the two story homes on the
list provided by the applicant.
. D. Supporting Data
1. MLS Data Provided by Applicant
.
.
.
.
(g@~)f
Jeff O'Neill
Community Development Assistant
Monticello City Hall
505 Walnut Street,
Monticello, MN. 55362
RE: Design Standards for Hillside Farms Development
Dear Mr. O'Neill
As you pointed out there appears to be a need for language clarification on the Developer agreement.
We were on the understanding the city wanted an upscale neighborhood. The 2000 Finished Sq. Ft.
above grade was agreed upon since the city RI-A required this amount of finished area.
To base value on foundation size and not over-all finished area above grade would change this neighborhood
to homes of considerable different designs and value. Requiring 1400sq. ft. foundations on all homes and
an addional 600sq. ft. finished in the basement would reduce this subdivision to just another neighborhood
in your city filled with split design homes. Yes they would be larger than your existing homes but nowhere
near the value a home brings with 2000 sq. ft. finished above grade.
When I attended your Planning Commission meeting on April 6 it was noted you have an appraiser on the
board. I too am a Real Estate Appraiser and have been for 26 years. Your Appraiser should be able to
advise you that a finished area in the basement of a home will yield a range of $6-9 per sq. ft. whereas
the area above grade will yield a range $20-30 per sq.ft..
I have attached for your own viewing as proof the following;
First a list of7 pages ofsome 200 homes sold in the County since 2000 and with the 1400 sq. ft.
requirement. As you can see, most of these home are in your Community but at a totaly different design
and value I think you would like to see in RI-A neighborhood.
Second is a MLS sheet of some of those 1400 Sq. Ft. homes most of which are townhomes or twin homes.
Third is the list of homes sold in the County since 2000 with 1000 sq. ft. foundation size and two story
design. It's easy to see these homes are not being built in Monticello and are at least $100,000 more
then a foundation restriction on a home of 1400 sq ft.
Forth are MLS sheets of some ofthese home, and note, most are less then 1400 sq.ft. on main floor.
Finally I 'am attaching a drawing to define home size and design for your pleasure.
We would like to have this P U D amended and clarified so that all homes must be 2000 finished above grade.
Thank you for your time and consideration.
Howard Triggs
THE DETAILED LISTING OF HOMES REFERRED TO ABOVE IS AVAILABLE AT CITY HALL
IF yOU WISH TO REVIEW IT.
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UPDATE
AGENDA ITEM #10
OVERFLOW PARKING LOT ISSUE
At the previous council meeting, the Council tabled action on awarding of bids for the overflow
parking lot on Walnut Street in order to receive a response from Vaughn Veit as to his
willingness to participate in the construction cost. On Thursday, April 201\ the City received a
letter from Mr. Veit indicating he did not feel the Towne Centre development needed this
overflow parking lot and was not going to participate in the construction cost at this time.
Based on Mr. Veit's decision not to participate in the project cost, Council will need to determine
whether there is any reason to still construct this parking lot at this time. Staff has been looking
at some other options within this block and has approached Wells Fargo to see if they are
interested in participating in the cost of building this parking lot with the idea that it would free
up some of their land originally proposed for parking area under the old library site for
commercial uses. In other words, if their parking can be provided on the City's parking lot,
maybe they would look at actually building some type of commercial building on the corner that
would be in compliance with our Downtown Revitalization Plan.
Representatives of Sunny Fresh Foods have also expressed interest in participating in half of the
construction cost if they were allowed to have to a designated number of spots for their use. This
could be a precedent in allowing private use of a public parking lot, so it is probably something
we want to evaluate further. Another option would be to reject the bids for construction at this
time but place the property on the market to see if a commercial use could fit on this site. The
reason is, if the Towne Centre developers do not think additional parking is necessary and the
City originally had planned to use some of this parking lot for the library (which no longer exists
here) possibly parking isn't the best use of the property and we should look at offering it for
development.
Regardless, Council action Monday night will need to address awarding of the bids either
rejecting or accepting, as our 30 day time frame will soon expire to accept the bids.
Attachment Letter from Vaughn Properties
VAUGHN PROPERTIES, LLC
14000 Veit Place
Rogers, MN 55374
Phone: (763) 428-6700 / Fax: (763) 428-1334
April 19,2004
Mr. Fred Patch
City of Monticello
505 Walnut Street, Suite L
Montil:cllo, MN 55362
Re: Joint Parking Area
Dear Fred:
This letter is to follow up with the conversations that City Staff has been having with Pat Cruikshank, Property Manager of
the Towne Centre Retail Mall recently. It is also in response to your letter dated April 13, 2004.
It sounds as though the City of Monticello and I are on the same page with the Overflow Parking Lot that has been proposed.
It appears the City and I would be building a parking lot for Sunny Fresh and Wells Fargo employees. We have documented
the traffic flow for some time and have not observed one tenant or their clients from Towne Centre mall use that lot. On the
other hand, the majority of the parked cars are coming from Sunny Fresh employees and some from Wells Fargo. If anyone
should be paying for the construction of this lot it probably should be those that benefit from its existance.
When we were proposing Towne Centre Retail Mall, a few years ago, the overflow lot seemed like a real good idea. We
were anticipating more of a need for longer term parking based on restaurant usage. As the mix of tenants has changed, so
has the need for this additional parking space. We have one restaurant and no more in sight. Another part of that discussion
years ago, was that the library site was being taken into consideration. Obviously that has changed as well.
Another reason for not constructing the lot, is that it seems contrary to the Main Street "feel" and "look" that I believe
Monticello has been touting for Walnut. It seems that it will become an asphalt lot on both sides of Walnut if this lot is
constructed.
In summary, I believe that it is not in the best interest of the City or myself to construct this lot.
Should you have any questions please call me at (763) 428 -2242 to discuss.
Sincerely,
~":::::':::;---~:~:,- -"
Vaughn Vcit
cc: Pat Cruikshank