HRA Agenda 12-05-2001
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AGE OA
MONTICELLO HOOSING AND RE DI(VELOPMENT AUTHORITY
Wednesday,Oecemhe 5,2001 - 7:00 p.m.
505 Walnut Street - Bridge Room
Commissioners:
Chair Dan hie. Viee Chair rad Barger. Steve Andrews, Darrin Lahr, and
Bob Murray.
Couneil Liaison:
Brian Stumpf.
Staff: Riek Wolfsteller, Ollie Koropchak, and Lo'i Kraemer.
Guests:
City Council and Planning Commi. sion memhers
Lisa Graphensteen and Sheri Ilarri., Central Minnesota Housing Partnership, Inc.
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5.
Call to Order.
Consideration to approve the Novemher 1 ,2001 HRA minutes.
Consideration of adding or removing items from the agenda.
Consent Agenda.
Presentation: Monticello Housing Study and Wright County IIousing Analysis. Central
Minnesota Housing Partnership, Inc.
6. lJpdate on the progress to nnanee and acquire properties associated with the proposed
TIF llousing District (Scattereclllousing P ojcct). Sheri l'larris, CMHP.
7. Review the impact of the tax increment rev nues given the reduction of class rates
cOll1pared to the increase inland costs for i dustrial development.
8. Consideration of authorizing payment ofN' vember HRA bills.
9. Consideration of Executive Director's Rep rt (HRA project updates).
10. Committee Reports: Marketing - Barger
11. Other Business.
12. Adjournment.
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MINU ES
MONTICELLO HOUSING AND R ,DEVELOPMENT AUTHORITY
Wednesday, November 14,2001 - Meeti g - 7:00 p.m. Workshop - 8:15 p.m.
505 Walnut Stree - Bridge Room
Commissioners:
Chair Dan Frie. Vice Chair Brad Barger. Steve Andrews, Darrin Lahr, Bob
Murray and Council Liaiso Brian Stumpf
Staff:
Rick Wolfsteller, Ollie Kor pehak, Jeff O'Neill and Lori Kraemer
Guests:
Jim McComb, McComb Gr up, Ltd; Steve Johnson, and Susie
Wojchouski, Chamber Dire 'tor
Mike Cyr, MLC Building Remodeling
Mark Ruff, Ehlers & Assoc ates, Inc.
1. Call to Order.
ACTING CHAIR BRAD BARGER CAL ED THE MEETING TO ORDER AT 7 PM.
Chair Frie arrived shortly thereafter.
2.
Consideration to a rove the Se tember 5. 200 I HRA minutes.
A MOTION WAS MADE BY DARRIN LAHR TO APPROVE THE MINUTES OF
THE SEPTEMBER 5. 2001 HRA MEETI G. BRAD BARGER SECONDED THE
MOTION. Motion carried unanimously.
3. enda. None
4. Consent Allenda. NI A
5. Consideration to a rove endorsement and or financial su ort for a Commercial Market
Analvsis and Oevelo ment Potential Evalu tion/McComb GrOll Ltd.
Ollie Koropchak provided the staff report' dvising that some time ago she, Darrin Lahr
and Steve Johnson met with First National Bank of Elk River to discllss interest in
redevelopment of a portion of Block 52. oropchak asked the HRA members to
determine if they felt a market study was n cessary for the sake of Block 52. or do we
contact suggested developers to solicit bids based on a determined mixed.use and
boundary?
Koropchak provided a summary of the 199) market study conducted by Maxfield as part
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HRA Minutes - 11/14/01
of the Hoisington Study. or the Downtowl Revitalization Plan, advising that the HRA
paid $80,000 for the Hoisington Study. T e MCP were the managers/administers of the
Downtown Revitalization Plan and the H - and EDA Commissioners provided the
financial tools to carry out the redevelopm nt and development activities. The MCP
conducted a second market study which K ropchak provided. Also provided was a draft
copy of the Monticello Commercial Mark t Analysis and Development Potential
Evaluation as prepared by McComb.
Jim McComb was contacted by Steve Joh son and had previously met with Susie
W ojouchski and Jefl 0 'Neill. Koropchak stated it was her understanding the Chamber
Board endorsed the concept only. Some I C members felt commercial is driven by
population and others stated the attached a alysis was not about roof-tops but addressed
whether the City was prepared for comme cial development. The IDC suggested the
HRA and Planning Commission address tl e analysis.
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The HRA is being asked to endorse and/or to contribute financial support after
determining the following: I. Does the a alysis apply to the role of the HRA:
redevelopment housing. and economic de elopment? 2. How does this study differ
from the Hoisington market study? Is the 996 study outdated? 3. Will the analysis be
useful to the lIRA or City? Or will it be p aced on the shelf? 4. Is the cost negotiable?
Steve Johnson addressed the HRA membe's and provided a brief summary of the reason
for inviting Mr. McCombs to give a prese tation. Jim McComb of the McComb Group
addressed the HRA. providing a compariso 1 to the Maxfield Research Group study that
was done for Monticello 5 years ago. Mc omb stated their firm would define the trade
area and include that in the study and that hey would also be looking at surrounding
communities and obtaining their compreh nsive plans fi)f inclusion in the study.
The members asked McComb why the cos would be higher than the cost of the study for
St. Michael and he stated that this study w uld be more involved. He stated the estimated
fee for phase I would be $26,700, but that if the merchant survey could be done by
someone other than their tirm, the cost wo lid be deducted from the study. He stated
having someone else complete the mercha t study not only saves money but also time.
Phase 2 is estimated at $ I 2.225. He stated the analysis for St. Michael took
approximately 3 months to complete and t at approximately 1 month's time is to get the
surveys out and processed.
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Jeff O'Neill stated that the City is in the PI' cess of updating the comprehensive plan and
they arc looking at a particular I -I zoned p reel that may be good for commercial. JefT
asked how this information \voldd help sh pe the City's comp plan. McCombs stated
that once the City understands square foot. ges available. they can convert the building
areas to land areas.
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!-IRA Minutes - 11/14/01
The HRA asked Susie Wojchouski if thehamber would have monies available for
funding this study and she stated that was lOt likely but that she would approach the
Chamber Board at their next meeting for t eir input. She also stated that the Chamber's
concerns are that once the study is comple ed will it be put to use. Rick W olfsteller asked
what St. Michael's intended use of their pi n was and McComb stated it was for
development and that the City ordered the study under the recommendation by it's
planner. Brad Barger asked Brian Stumpf if it would be a good idea to bring this to the
City Council and Stumpf stated to include the Planning Commission and HRA as well.
Bob Murray stated he felt the City needs t is type of study.
A MOTION WAS MADE BY DARRIN AHR TO TABLE THE ITEM AND
DISCUSS IT AT THE WORKSHOP FOLLOWING THE MEETING. THE MOTION
WAS SECONDED BY STEVE ANDRE S. Motion carried unanimously.
6.
t of TI F and reduction of initial de osit
once t for establishment of a Housinu District.
Koropchak provided a brief report advisin the HRA of the City Council's decision from
their 11/13/0 I meeting. Mike advised that he is not clear on the workings of up-front
assistance. Koropchak stated if the HRA id pay-as-you-go, the developer would have to
seek private financing. Mark Ruff advised that Cyr would also accrue interest which may
be enough but Cyr would have to check in 0 this. Dan Frie asked what percentage of his
buyers from his current project are at the I edian income stated in the report and Cyr
stated none, that these are older people wh pay cash. Cyr stated he would like to have a
model in place by Spring. Cyr is asking th board if they would support the level of
assistance '.vith the information submitted. Koropchak suggested that Mark Ruff run the
numbers. Cyr advised that he is not comf rtable with honting $5,000 just to run the
numbers, but he would be comfortable wit $500. Koropchak advised that generally the
money not used if a project does not go fo ward is returned to the applicant.
Darrin Lahr stated he was comfortable wit option 3 in the staff report if Ruff s numbers
came in near Koropchak' s. Cyr advised th t he would need to close his deal by the end
of the year for this project. Ruff stated tha it would be better for the HRA to move
forward rather than wait for numbers from his office as Koropchak's numbers are
typically correct. Koropchak asked Cyr to provide PID numbers for all parcels for her to
establish a TIF district. W olfsteller propos ~d that possibly the assistance could be split
part pay as you go and part up-front. Also Wolfstellcr questioned the guarantees for up-
front assistance and it was advised that thet e are assessment agreements, etc.. and this is
done when the homes are actually built an sold. The I-IRA determined that pay as you
go would be the best.
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HRA Minutes - 11/14/01
A MOTION WAS MADE BY STEVE A DREWS TO APPROVE PA Y-AS~YOU-GO
TIF ASSISTANCE IN THE AMOUNT OF $163,000,18 UNITS AT AN EMV OF
$ I 48,41 0 PER UNIT AND INITIAL DEPOSIT OF $5,000; INTEREST RATE
NEGOTIABLE, SUBJECT TO EXECU ION OF A PRIVATE REDEVELOPMENT
CONTRACT BY FEBRUARY 6, 2002. OB MURRA Y SECONDED THE MOTION.
Motion carried unanimously.
7. Consideration to award demolition and cl anu a Jreement for 8 Locust 220 Front 218
Front and 3 Walnut Street.
Koropchak provided the report stating tha at the September BRA meeting, the
commissioners rejected the sole bid for cl anup of the 8 Locust, 220 Front, and 3 Walnut
Street properties and upon possession of tl e 218 Walnut Street property, authorized
resubmitting a request for proposal for dCI 01 ition and cleanup of the entire four parcels.
The commissioners understand the Prelim nary Development Agreement with I--Ians
Hagen Homcs expired October 2001. Mr. I--Iagen had requcsted a finished pad site at 95-
100% compaction. The commissioners su Jgested to resume discussion with Mr. Hagen
over the winter months.
The HRA gained possession of the 218 Fr nt Street property on October 25. 2001.
December 20 and 21 havc been set as the ates for the appointed commissioners to hold
hearings concerning the value of the prope ty.
The request for proposal for demolition an cleanup of the four parcels was mailed to
three contractors on October 29,2001. Th' bids were duc November 13, 200l, and
completion of the demolition and cleanup cheduled for no later than December 7,2001.
All utilities were ordered to be capped and removed by November 9, 200 I. Koropchak
advised an estimate of professional ex pens s from May through end of September at
approximately $13.500 relating to the o'e nnor property.
A MOTION WAS MADE BY DARRIN AHR TO ACCEPT A BID OF $5,800 FROM
SCHLUENDER CONSTRUCTION. INC. FOR DEMOLITION AND CLEANUP OF 8
LOCUST STREET. 210 FRONT STREE .218 FRONT STREET, AND 3 WALNUT
STREET PROPERTIES. DEMOLITION N SITE. MOTION SECONDED BY STEVE
ANDREWS. Motion carried unanimously
8.
Consideration to revie\v costs associated ith site rc _ aration and to consider
extendinc the effective date of the Prelimi arv Devclo ment Agreemcnt bet\vccn the
HRA and Hans Hallen.
Koropchak advised that based on the sugg stion of the I--IRA to continue discussion with
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HRA Minutes - 11/14/01
Hans Hagen over the winter months, estimated costs for site preparation have been
prepared. The costs associated with the I' placement of Front Street and the water/sewer
line was estimated at $147,136 by WSB, I c. of which $11,461.12 was for stubs to the 10
lots. The replacement policy for the City i proposed at 25% assessed and 75% city. The
Building Official estimated the costs for AC/SAC, park dedication, and trail/pathway
for 10 units at $47,600. The cost to prepar an RFP and the cost to complete the clean
site to a finished pad site at 95-100% com action and from its existing state to a finished
pad site at 95-100% is being estimated by SB, Inc.
The HRA is asked to discuss and suggest. selling price tor the entire area or per lot.
Koropchak briefly revievved the previous RA purchase of the Katzmarek property and
that possibly they would choose to use the same scenario with the Carlson property.
Steve Andrews questioned replacing Front Street when all main parking/access is to the
rear of the homes. O'Neill advised that ha ing the narrow road is good in that it slows
traffic. and that Hagen previously stated th s narrow road defines a natural boundary.
Brian Stumpf agreed and stated possibly d'scussing further with Hagen. The HRA also
felt this would be a good topic for the Plan ing Commission to discuss.
A MOTION WAS MADE BY DAN FRIE RECOMMENDING A SELLING PRICE OF
$300,000 FOR THE ENTIRE NORTHER Y ONE-HALF OF BLOCK 54. WITH THE
OPTION OF A REDUCED SELLING PR CE OF $225.000 WITH SITE PREP WORK
DONE BY DEVELOPER. AND TO APP OVE EXTENDING THE EFFECTIVE
DATE OF THE PRELIMINARY DEVEL PMENT AGREEMENT WITH HANS
HAGEN HOMES THROUGH APRIL 20 2. THE HRA WILL SOLICIT REQUEST
FOR PROPOSALS FROM OTHER DEV LOPERS SHOULD HANS HAGEN HOMES
DECLINE THE HRA'S OFFER. DARRI LAHR SECONDED THE MOTION.
Motion carried unanimously.
9.
Consideration of authorizin
tember and October HRA bills.
A MOTION WAS MADE BY BOB MUR Y TO AUTHORIZE PAYMENT OF THE
SEPTEMBER AND OCTOBER HRA BI LS. BRAD BARGER SECONDED THE
MOTION. Motion carried unanimously.
10. Consideration of Executive Director's ReJ 1'1.
Koropchak provided the Executive Directo -'s report adding that Shari Harris and Lisa of
the CMIlP \vill be presenting a report on th housing program at the December HRA
meeting.
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11.
Committee Reports:
HRA Minutes - 11/14/01
Marketing - Brad Barger advised that the xpo was held this past weekend; the IDC had a
booth with quite a few Monticello industri s providing samples of their products.
Koropchak advised that the marketing bro hures had not yet arrived but they did receive
a check from Xcell Energy.
12. Other Business.
Chair Frie had asked Koropchak to prepar an attendance sheet for the HRA members for
the year 2001 to date. Frie noted the impo tance of the HRA commissioners attendance
at the monthly meetings and added that th commissioners need to assess their time and
commitment to consistently attend the me tings and may wish to reconsider their role as
a commiSSioner.
13. Adjournment.
A MOTION WAS MADE BY BRAD BA GER TO ADJOURN THE MEETING AT
9:00 PM. DARRlN LAHR SECONDED HE MOTION. Motion carried unanimously.
HRA Chair
Recorder
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HRA WO KSHOP
Wednesday, Nov mber 14,2001
Commissioners:
Chair Dan Frie, Vice Chair rad Barger. Steve Andrews, Darrin Lahr.
Bob Murray and Council Li ison Brian Stumpf
Staff:
Rick Wolfsteller, Ollie Kor pehak, Jeff O'Neill and Lori Kraemer
Guest
Mark Ruff. Ehlers & Assoc ates
Does the HRA want to proceed with redevelopme t of the downtown or Block 52?
Executive Director Ollie Koropchak provided a lis of current activities within TIF District No.
1-22.
Recap tax increment available to proceed and imp ct 5 year rule and $2 million dollar bond sold.
Mark Ruff of Ehlers & Associates advised the effe't of the sale of the bond and the 5 year rule.
Still restricted on Block 52: limited in what kind 0' developer assistance. Koropchak asked
Mark if the City needed to ask for a speciallegisla ion and Ruff stated no. Ruff advised to take
TIF districts on a case by case basis. Of the mane available due to the 5 year rule. we are
limited to approximately 25%.
According to Mark Ruff the McComb's study is reputable, not necessarily needed for just Block
52 redevelopment. O'Neill stated that the City Pia mer's firm could provide the type of
infom1ation that is needed for the comprehensive Ian. Also noted was that if a larger retailer
came to town they would most likely do their own footwork and not necessarily rely on the
City's study.
It was the consensus of the HRA members that the were not interested in spending that type of
money for the study as they felt it was not benefici I to the HRA.
Koropchak also asked the HRA to decide if they w re interested in proceeding with
redevelopment of Block 52.
O'Neill added that he didn't feel the City should w it for a developer to approach them. but
should prepare for the possibility and Ruff COnCLllT d that the City could land bank. Frie added
that with the City" s lot and the parking lot. and the possibil ity of purchasing Springborg,
Johnson, and Froslie they would already have appr ximately 3/4 of the property.
Ruff advised that they could bring in a "parade of evelopcrs". possibly two to four retail or
other type of developers, and get their input.
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It was the consensus of the HRA members that th y were in agreement to proceed with a plan for
Redevelopment of Block 52 and were not oppose to having developers come in and submit their
input and scout the properties on Block 52 for possible acquisition.
The workshop meeting concluded at IO PM.
HRA Chair
Recorder
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BRA Agenda - 12/5/01
5.
A. Reference ~llld haekl!round:
Sonle months ago, the HRA authorized pa icipation in a Wright County Housing
Analysis Study at a cost of $500. The stud conducted by the Central Minnesota
Housing Partnership, Inc. (CMHP) was co rdinated through the Wright County
Economic Development Partnership. Lisand Sheri from CMHP will make the
presentation which includes the housing an lysis of the City of Monticello and Wright
County. The HRA authorized the study fo the purpose to update the housing stock data
of Montice1\o based on the latest huilding ermit information and demographic data
(population and household, age distributiOl . household income, and employment). The
study and data also meets some requiremel ts set forth in the MN TED grants to the City.
The City Council and Planning Commissio 1 members have been invited. This allows the
opportunity for questions and answers. Ad itionally. Mike Benedetto, School District
882 Supt., and School Board members hav been invited.
This is a presentation only and no action is required.
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liRA Agenda - 12/5/01
6.
U date on the ro Jress to finance and a uire ro erties associated with the
proposed TI F Housing District. (Scatter >d Housing Project.)
A. Reference and background:
Sheri lIarris, CMlJ P, will give an update 0 the progress to finance and acquire five
parcels along Minnesota Street between Fi th and Sixth Street for redevelopment and
construction of approximately 10 single Lu lily, owner-occupied homes at a selling price
of $115,000.
As YOLl recall, the Monticello $500,000 gralt application was submitted to the Minnesota
Housing Finance Agency in July for the se ond round of monies. However, the
Monticello project was not funded. CMH is still very interested in the project and has
contacted other gap funding agency (Centr 1 Minnesota Housing Fund) for participation.
The targeted household income level is $2 ,000 to $30,000 for a $85,000 mortgage.
Income level for gap financing is 80% oftl.e median state income $57,900. For Housing
TIF District, owner-occupied housing mus meet the metro county median income level
$74,000 (2001).
March 7,2001, the I-IRA approved up-fron TIF assistance in the amount 01'$125,000
NPY and waived the $5,000 deposit. The IRA based the assistance level on an increased
selling price of $131,000 per unit.
The City previously purchased the KauHin nn lot for $45,000. Sheri has contacted the
lClL/r remaining property owners and will report her progress. Pending interest to sell, the
HRA will authorize establishment of the T F District in January.
Update only, no action required.
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HRA Agenda - 12/5/01
7.
Review the im act of the tax increment evenues iven thc reduction of class rates
com ared to the increase in land costs for industrial develo lment.
A. Reference and background:
A high-tech manufacturing company worki g through a general contractor has visited
Monticello previously. Prior to the reducti n in class rates, the company was offered 6
acres of land t()f a $1 with some site impro ement costs covered. The project consisted
of a 60,000 sq ft building. (-riven the chan es enacted by Legislators, the general
contractor contacted me for the change in t e level of Tlf assistance. Attached is a
comparison of the estimated tax increment evenue prior to and after class rate changes.
Also is a comparison of land costs one-yea ago and today per the owner.
Working with Paul Bilotta on behalf of the Chadwick/Bowers, plans are for the Council
to order a feasibility study for infrastructur development and request annexation of 60
acres at the December 10 council meeting. This at least will provide a diversity of land
owners. Chadwick has hired C B Richard llis to market the property; however, no land
price has been established.
At the 2002 City Budget workshop. the am ual $75.000 city contribution for industrial
development was deferred. Three reasons: tight budget, no plans for reserved monies.
and no continued matching commitment b the liRA. O'Neill mentioned the availahility
of the City/Remmelc commercial property. s a possible land trade. The City fund
balance is $265,000 and the HRA fund bal nee approximately $300,000. Additionally
and in concept, the liRA earmarked the TI revenues from District 5 (Construction 5)
and VI (Raindance) for industrial developn ent. These districts were created prior to the
pooling restrictions. Initially, I believe, the intent was for the HRA or City to acquire
land for industrial development.
An otfer of $3,000,000 for the 180 acres ($ 6,666 per sq ft) of undeveloped Chadwick
property was rejected hy the Council. Wh is the followup plan ofthe City and the
HRA? The IDC and Marketing Committe will address the same question?
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Industrial Develo ment Changes
ASSUMPTIONS: 60,000 sq ft manufacturing acility (7,000 sq ft office and 53,000
manufacturing space). Six areas. Employmen 100. $9.5 million in sale in 2000.
Specialize in medical, aviation, and commercial jobs. Average machinist made $61,720 in
wages and benefits last year.
l1:stimated Market Value of Building - $2,045,0 O.
TIF ASSISTANCE ESTIMATES
Previous
Class rates 2.40;;)
3 .4 (Yo
$ 3,600
$64,430
$68J)30
TOTAL TC
X Local tax rate 1.29(j'l)
Tax Increment $76,758
Less 10% $ 7,675
Annual tax increment $69,083
over 9 years $621.837
TIF assistance NPV $310,000
LAND COSTS
Previous
$1.00 per sq 1't
X 43,560 sq 1't
$43,560 per acre
X 6 acres
Land costs
$261,360
$261,360
APPLIED TIF ASSISTANCE
TIF assistance
Land write-down
To $1.00 and $48,640
Site improvements
Current
1.5% $ 2,250
2.0% $37,900
TOT L TC $40,150
X Lo al tax rate 1.38%
Tax Ilcremcnt $55,407
Less 0% $ 5,540
Annu I tax increment $49,867
over years $448,803
TI F ssistance NPV $224,000
-$ 86,000
Current
$ 1 .50 per sq ft
X 43,560 sq n
$65,340 per acre
X 6 acres
Land costs
$392,040
$392,040
+$130,680
TIF assistance Land write-down
$224,000
Company finances $168,040
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CHOICE OF THE CITY?
I. Buy land at $16,700 an area. (6 x 16,700 = ,'100,200) Remaining $123,800 for
infrastructure development. The City determi es its own destination and aggressively
positions itself for job creation and tax base.
Or current situation:
2. Pay land owner $65,340 per acre. City mar ets City of Monticello for industrial
development $20,000 annually. The company ays $168,040 or goes to Big Lake or to a
more competitive community.
3. City industrial land acquisition fund $265, 00
HRA industrial land acquisition fund $300,
What were the plans for this money'?
4. Is this an opportune time to work with township'?
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HRA Agenda - 12/5/01
8. Consideration of authorizin a ment 0 November HRA bills.
Recommendation to authorize.
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City of Monticello
Accounts Payable
505 Walnut Street, Suite 1
Monticello, MN 55362
Kennedy & Grav n, Chartered
200 South Six h Street
Suite 4 0
Minneapolis, M 55402
(612) 337- 300
November 1 ,2001
Statement No. 40105
Through October 31, 2001
MN190-00089 Acquisition of 218 Front Street/O'Connor
Expenses
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I declare, under penalty of law, that this
account, claim or demand is just and correct
and that no part of it has been pa' .
.
3,047.50
520.03
Total Current Billing:
3,567.53
OK TO PAY? ~
C de:~\"J., 4\tJS~-3.~o~o
In tial ~
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Kennedy & Grav n, Chartered
200 South Six h Street
Suite 4 0
Minneapolis, N 55402
November 1 ,2001
Invoice # 0105
City of Monticello
Accounts Payable
505 Walnut Street, Suite 1
Monticello, MN 55362
MN190-00089 Acquisition of 218 Front Street/O'Connor
Through October 31,2001
For All Legal Services As Follows:
10/1/2001 RJL Dictate, revise and finalize ffidavits and letters; revise
affidavits and letters; draft ath; intraoffice conference re
same
Hours
1.00
Amount
165.00
10/1/2001 80S Drafted an Oath of Commis ioners. 0.40 34.00
. 10/2/2001 RJL Revise oath; attend sweari g in; conference with J. 2.90 478.50
Peterson; phone call with H mmer, Eull, and Vanderlinde;
dictate letter to commission rs; intraoffice conference with
staff re viewing
10/3/2001 RJL Intraoffice conferences re ropchak affidavit and disposal 0.60 99.00
of abandoned property; voi e mail from Koropchak
10/3/2001 80S Phone calls with Ollie Koro chak; revisions to her affidavit 1.30 110.50
in support of motion to com el; meetin~ with 8 Lindall
about the affidavit; drafted memo to lie; arranged and
sent faxes to Ollie Koropch k.
10/4/2001 RJL Revise and finalize letters t commissioners, counsel and 0.20 33.00
court
10/5/2001 RJL Prepare for and attend cou hearing on motion to compel 5.10 841.50
delivery of possession; dict te and revise letter to Judge
Meyer
10/5/2001 80S Looked for cases dealing with a condemnation statute in 0.50 42.50
annotations and on Lexis.
10/8/2001 RJL Review and finalize letter to Judge Meyer; research; phone 0.60 99.00
call with client; review file; f x to client
10/9/2001 RJL Review faxes from Peterso to Judge; phone call with 0.30 49.50
Peterson; dictate letter to J dge Meyer
10/10/2001 RJL Revise and finalize letter to udge Meyer; review file; fax to 0.50 82.50
Judge, Peterson and Korop hak
. 10/11/2001 RJL Review file 0.30 49.50
10/15/2001 RJL Intraoffice conference re or er to compel 0.10 16.50
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Page:
Kennedy & Grav n, Chartered
200 South Si h Street
Suite 4 0
Minneapolis, MN 55402
City of Monticello
October 31, 2001
10/16/2001 RJL Attend viewing; conference with O. Koropchak 2.30 379.50
10/19/2001 RJL Phone calls with O. Koropc ak (3); phone call with Judge 0.70 115.50
Meyer's clerk and district c urt administrator
1 0/23/2001 RJL Phone calls with J. Peterso (2) 0.20 33.00
10/24/2001 PES Draft notice of filing of orde to compel; draft letter to J. 0.25 22.50
Peterson
10/24/2001 RJL Phone calls with J. Peterso (3) and O. Koropchak (2); 1.00 165.00
review order; dictate and r ise letters to Koropchak and
Peterson; phone call with J. Vanderlinde
10/25/2001 RJL Review appraisal; voicemai s from Ollie Koropchak; 0.70 115.50
. intraoffice conference re sc eduling hearings; review file;
dictate and revise letter to ourt administrator; fax to
Koropchak
10/29/2001 RJL Phone calls with Koropcha (2); intraoffice conference re 0.30 49.50
file
10/30/2001 RJL Intraoffice conference; pho e calls with Koropchak and 0.30 49.50
Peterson; dictate letter sch duling hearings
10/31/2001 RJL Review and finalize letter to commissioners and interested 0.10 16.50
parties
To al Services: $ 3,047.50
For All Disbursements As Follows:
Photocopies 74.20
Fax 46.50
Postage 25.70
9/18/2001 On Time Delivery Service Delivery Service 52.17
9/18/2001 On Time Delivery Service Delivery Service 52.17
9/18/2001 On Time Delivery Service Delivery Service 58.14
9/19/2001 Robert J. Linda"; mileage xpense 27.20
. 9/19/2001 On Time Delivery Service Delivery Service 52.17
9/27/2001 Metro Legal Services; Doc ment retrieval service 123.00
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Page: 3
Kennedy & Grav n, Chartered
200 South Si th Street
Suite 4 0
Minneapolis. N 55402
City of Monticello
October 31, 2001
9/30/2001
Lexis-Nexis - Legal Rese rch
T al Disbursements:
To al Services and Disbursements: $
$
8.78
520.03
3,567.53
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November 21, 2001
Wright County
Buffalo, MN 55313
MONTICELLO HRA
505 WALNUT ST STE 1
MONTICELLO, MN 55362
Dear Property Owner/Taxpayer,
DOUGLAS M. GRUBER
Wight County Auditor I Treasurer
Wright County Government Center
10 2nd Street N. W. . Room 230
Buffalo) Minnesota 55313-1195
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Phone: (763) 682-7578
Fax: (763) 682-7873
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Our records indicate you have recent y acquired property in Wright
County. As you knowr there are many inancial obligations as a
property owner one of which is the r sponsibility of the payment of
real estate taxes. We feel you shoul know the present status of
taxes on your property - R 155-010-054091 \7~
For payable 2001 the total tax duer including penalty, if paid before
November 30, 2001 is 403.86. If payment is made after that
date you will need to contact the Wright County Treasurer's Office
for the correct amount.
If you feel these taxes should have een paid at the time of closing
you may want to contact your title/closing company.
Please contact the Wright County Tre surer's Office at 763-682-7573
or 763-682-7572 if you have any questions.
Sincerely,
Douglas M. Gruber
Wright County Auditor/Treasurer
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Equal Opportunity I Allir atiue Action Employer
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November 21, 2001
Wright County
Buffalo, MN 55313
DOUGLAS M. GRUBER
ight County Auditor / Treasurer
Wright County Government Center
10 2nd Street N. W. . Room 230
Buffalo, Minnesota 55313-1195
Phone: (763) 682-7578
Fax: (763) 682-7873
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HRA FOR CITY OF MONTICELLO
505 WALNUT ST STE #1
MONTICELLO, MN 55362
Dear Property Owner/Taxpayer,
Our records indicate you have recent
County. As you know, there are many
property owner one of which is the r
real estate taxes. We feel you shoul
taxes on your property - R 155-010-0
For payable 2001 the total tax due,
November 30, 2001 is 1,277.30
date you will need to contact the Wr
for the correct amount_
y acquired property in Wright
inancial obligations as a
sponsibility of the payment of
know the present status of
4 010 ~ tl-r--.-
ncluding penalty, if paid before
If payment is made after that
ght County Treasurer's Office
If you feel these taxes should have een paid at the time of closing
you may want to contact your title/c osing company.
please contact the Wright County Tre surer's Office at 763-682-7573
or 763-682-7572 if you have any ques ions.
Sincerely,
Douglas M. Gruber
Wright County Auditor/Treasurer
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Equal Opportunity! Affir atiue Action Employer
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HRA Agenda - 12/5/01
9. Consideration of Executive Director's R ort.
Front Street - If you haven't noticed, the north rly one-half of Block 54 between Walnut
and Locust has been prepared as a clean site. he liRA offered the site to Hans Hagen
Homes, Inc. for $300,000 which includes the sit prepared as a finished pad site,
water/sewer hook-up fees, park/trail dedication, water/sewer and road replacement, and 10
stubs. Site preparation costs were estimated b WSH, Inc. and the Chief Building Official.
An option to purchase for $225,000 was offered in which the developer would prepare the
site as a finished pad site. The Preliminary De elopment Agreement with Hans Hagen
Homes, Inc. expired the end of October, 2001. The site is less than 1.25 acres. The
developer must develop 10 single-family, owne -occupied homes at selling prices of at least
$190,000 plus. See attached letter. Mr. Hage called on November 27 stating he was out-
of-town and would get back to me within a cou Ie of days relative to decision of which
option to accept.
Proposed Vine and Minnesota Street Cyr Devel pment - The HRA approved pay-as-you-go
TIF assistance (interest rate negotiable) in the' mount of $163,000 ($105,000 for
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acquisition/demo of Grubbs property and $58, 00 for aC{Juisition of vacated
Vine/Minnesota Street). The selling price of th vacated Vine/Minnesohl Street was
determined to be $73,000 by Administrator Wo fsteller. The developer will finance the
$15,000 gap. The life of the district will be 15 ears and the district boundary to include 18
units (9 townhomes) at an estimated market value of at le~lst $14H,41O based on a selling
price of $164,900 per unit. Built-out of the 18 u its by December 2004. The Private
Redevelopment Contract will most likely inclu e the total build-out of all 26 units (13
townhomcs) much thc same as Prairic West or iver Mills. Rate of Return to the
developer 9.1411.,. lJ pon execution ofthe Preli inary Dcvelopment Agreement by the
developer and the $5,000 deposit, the HRA is p epared to begin the process for
establishment of a TIF District. A TIF Schedu e was prepared with the assumption, Cyr
wanted to proceed as soon as possible. In my la cst conversation with eyr, he said bids
were higher than expected and he needed time 0 review project feasibility. Therefore, the
lIRA will not requcst the City Council call for. public hearing date for the establishment
of a TIF district until the .January HRA meetin .
Amoco site - The weel{ ofthe BRA meeting, sta fwill meet with Brad .Johnson and Barry
Fluth to review the site plan and design. This r c1udes the parking plan as previously
agreement upon for development of off-site par ing associated with HilA's commitment of
$45,000. In reviewing the Contract, a Novembe, 1,2001 deadline was set for obtaining
casements and agrecmcnts for dcvelopment of t e off-site, public parking area. At this
time, it is assumed the project is moving forwar based on the concept approved.
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HRA Agenda - 12/5/01
Bloel{ 52 - Bascd on thc recommcndations from thc BRA workshop last month, a copy of
non-binding Icttcr of intcnt was obtaincd from cnncdy & Graven. I will be contacting
.Johnson, Springborg, Froslic, Poircr, and Ileat n for interest and completion of the letter
of intent as a start. This will help to assess the "easibility and determine the boundary of a
projcct prior to inviting developcrs to scopc th arca for redevelopment
concepts/suggestions/interest. I have talked to Johnson relativc to the HRA's workshop
recommendation and also informed him ofthe RA's decision to not financially support
the McComb study. He was OK with that.
New Brochure has arrived. Received $4,000 ch ck from Xcel Energy. We arc waiting with
printing the inserts until .January after anticip~ ted increase in water/sewer ratcs, ctc.
Very quiet with industrial leads.
Markcting Committee meeting scheduled for D ccmbcr 7, 7:30 a.m.
7
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November 19,2001
MONTICELLO
Mr. Hans T. Hagen, .If., President
Hans Hagen Homes
941 NE Hillwind Road. Suite 300
Fridley, MN 55432
Re: Preliminary Development Agreement
Dear Mr. I-Iagen:
On April 12, 200 I, Hans Hagen Homes, Inc. and t 1e Housing and Redevelopment Authority
(HRA) in and for the City of Monticello, Minnesoa. entered into a Preliminary Development
Agreement associated with Lots 6 through 10. Block 54, City of Monticello. The agreement was
. effective through October 2001 and the developer eposited $5.000.
Over the past year, the HR..A. has been in the proce s of acquiring the parcels. On October 26,
200 L the lIRA gained possession of the last parce in the defined redevelopment area.
Demolition and cleanup of the area is scheduled l' r completion by no later than December 7,
2001.
Based on the grading and site preparation informa ion provided by Hans Hagen Homes, Inc.. I
asked the City Engineer Consultant. WSB, Inc.. to estimate the cost to prepare the area as a
finished pad site as requested by Hans Hagen Hon es. Inc. Additionally, the cost for acquisition
and estimates of WAC /SAC hook-up fees, park/tr" il dedication, water/sewer and street
replacement including 10 new stubs was compiled At the HRA meeting of November 14,2001,
the commissioners determined a selling price of $300,000 for the northerly one-half of Block 54.
The price includes a finished pad site. WAC/SAC ook-up fees. park/trail dedication,
water/sewer and street replacement and 10 new st bs. As an option. the HRA agreed to a selling
price of $225,000 fiJr the northerly one-half of Blo k 54 including WAC/SAC hook-up fees.
park/trail dedication. water/sewer and street replac men1. and 10 new stubs. In other \vords, the
developer is responsible for the finished pad site preparation under this option. Additionally, the
commissioners approved extending the Preliminar. Development Agreement with Hans Hagen
Homes. Inc. through ApriL 2002, subject to accept nce of one of the above selling price options.
.
The acquisition process turned-out to be longer tha anticipated and the HRA appreciates the
patience of Hans l-Iagen I.lomes, Inc. The HRA an the community looks forward to working
Monticello City Hall, 505 Walnut Street, Suite 1, Monticello, N 55362-8831 . (763) 295-2711 . Fax: (763) 295-4404
Office of Public Works, 909 Golf Course Rd., Monticello MN 55362 . (763) 295-3170 . Fax: (763) 271-3272
.....
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Mr. Hagen
November 19,2001
Page 2
with tIans Hagen Homes, Inc. for redevelopment [this area into ten high-quality, owner-
occupied, single-family homes at a purchase price of at least $190,000 plus.
Please consider the offer and extending the Preli inary Development Agrccment. For further
information and questions, please call me at 763- 71-3208.
Sincerely,
HOUSING AND REDEVELOPMENT AUTHO
IN AND FOR THE CITY OF MONTICELLO
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Ollie Koropchak
Executive Director
c:
Roger Bclsaas, Mayor
Rick Wolfstcller. Administrator
Jeff O'NeilL Deputy Administrator
Mark Rufl Ehlers & Associates, Inc.
HRA File
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THE FACE OF THIS DOCUMENT HAS A COLORED BACK(iROUND ON WHITE PAPER AND MICRO PRINTING
~. OAKLEY
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PAY TO THE CITY OF MONTICELLO
ORDER OF
.. .. .. .. One hundred Seven 4311 00 ........
C;.\S.."ERfS C"'ECK
056347
uffalo, Minnesota 55313
xxxx 11/21/2001 XXXX
75-0312
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DOLLARS
AUTHORIZED SIGNATURE
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November 8, 200 I
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MONTICELLO
Mike Benedetto, Supt.
Monticello School District
302 Washington Street
Monticello. MN 55362
Re: Presentation of the Monticello Housing StL dy and Wright County Housing Analysis
Dear Mike:
.
On behalf of the Monticello Housing and Redevel pment Authority (HRA), an invitation is
extended to you and the District School Board Me bers to attend a presentation by Lisa
Graphensteen and Sheri Harris of the Central Mimesota Housing Patinership, Inc. (CMHP).
The presentation is scheduled for Wednesdav. Dee mher 5. i001. 7:00 .m.. in the Bric!!..J:e Room
at the Communitv Center. The liRA authorized p, rticipation of the housing analysis along with
other Wright County cities through the coordinatino efforts of the Wright County Economic
Development Partnership. The analysis prepared y the CMHP includes the current housing
stock based on building permit information, 2000 emographic data, and the housing demand.
The HRA authorized participation in the study for he purpose of obtaining a current Housing
Study for the City of Monticello at a relative low c st of $500 and to satisfy the affordahle
housing component associated with the Minnesota Trade and Economic Development Grants
awarded to the City of Monticello.
The Monticello City Council and Planning Commi 'sion members are also invited. Should you
have any questions, please call me at 763-271-320
Sincerely,
.
I rOUSING AND REDEVELOPMENT AUTI lOR TY
IN AND F()R TI-[E CITY OF MONT'ICELLO
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Ollie Koropchak
Executi vc I)i rector
Monticello City Hall, 505 Walnut Street, Suite I, Monticello, N 55362-8831 . (763) 295-2711 . Fax: (763) 295-4404
Office of Public Worb, 909 Golf Course Rd., Monticello, N 55362 . (763) 295-3170 . Fax: (763) 271-3272