HRA Agenda 10-03-2001
AGE~ A
MONTICELLO HOUSING AND R I ngVELOPMENT AUTHORITY
Wednesday, October 3, 2001 - Meetin - 7:00 p.m. Workshop - 8:()O p.m.
505 Walnut Street - Bridge Room
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Commissioners:
Chair Dan Frie, Vicc Chair rad Barger, Steve Andrews, Darrin Lahr. and
Bob Murray.
Council Liaison:
Brian Stumpf.
Staff: Rick Wolfsteller, Ollie Koropchak, and Lo'i Kraemer.
Guests:
Bill Grassl, Domino's Pizza
Mark Ruff, Ehlers & Associates, I c.
Representative form Hans Ilagen omes
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Call to Order.
Consideration to approve the September 5, 2001 HRA minutes.
Consideration of adding or removing item from the agenda.
Consent Agenda.
Consideration to discuss ror approval the < cquisition of the Grassl lot located on West
Broadway.
6. Consideration to approve extending the efective date or the Preliminary Agreelnent
between the liRA and Hans IIagen Home.' and an update on projects within TIF District
No. 1-22.
7. Consideration of authorizing payment of n onthly (-IRA bills.
8. Consideration of f':xecutive Director's Re 011.
9. Comlnittee Reports: Marketing - Barger
10. Other Business.
11. Adjournment.
8:00 P.M. WORKSHOP - DISCUSSION WHET HE TO PROCEIi:O WITH A PLAN FOR
REDEVELOPMENT OF DOWNTOWN OR BLOC 52.
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MINU ES
MONTICELLO HOUSING AND R.DEVELOPMENT AUTHORITY
Wednesday, Septcmb r 5, 2001 - 7:00 p.m.
505 Walnut Stree - Bridge Room
Members Present:
Chair Dan Frie, Vice Chair Brad Barger and Darrin Lahr
Members Absent:
Steve Andrews, Bob Murr y and Council Liaison Brian Stumpf
Staff Present:
Rick Wolfsteller, Ollie Kor pchak and Lori Kraemer.
Guests:
Paul Steinmen and Jerry S annon, Springsted, Inc.
Mike Cyr. MLC Building d Remodeling
1. Call to Order.
Chair Frie called the meeting to order at 7 PM.
2.
Consideration to a rove the Jul 11 200 and Au Just 1, JOO I HRA minutes.
A MOTION WAS MADE BY BRAD BA GER AND SECONDED BY DAN FRIE TO
APPROVE THE MINUTES OF THE JU Y 11. 2001 AND AUGUST 1,2001 BRA
MEETINGS. Motion carried.
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Consideration of addin!.! or removin item from the a enda. None.
4.
Consent Agenda. None.
5. Consideration to hear a resentation b u lie finance advisors, S rin sted, Inc.
Ollie Koropchak. Executive Director, advi 'ed that representatives from Sprinsted, Inc.
were in attendance to provide a brief prese tation to the HRA members regarding their
company. Paul Steinmen and Jerry Shann n introduced themselves and re-familiarized
the members with their company who pre iously worked with the City of Monticello as
financial advisors. They noted there are f ur people in their company who specialize in
housing and economic development. and t at Jerry works in the financial end of their
company. Steinmen noted that they are a ulti-faceted firm specializing in public
finance and that they are known for their s ecialty in bond issuance.
Steinmen added that some of the surround ng communities they work with included
Albertville, St. Cloud. Maple Grove. Corc ran and St. Michael, as well as a number of
school districts in the area and the Montie llo - Big Lake Hospital.
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HRA Minutes - 09/05/01
The members asked for an approximate fe to establish a TIF district and Steinmen stated
that it would depend on the level of involv ment but that it could be anywhere from
$2.500 to $4,000 stating that they deal wit these on a project by project basis.
One of their primary assets that set them a art from the City's current advisor is that they
are independent and do no work for privat developers. Also noted was their public
sector experience. Steinmen noted that he typically runs the numbers on projects, but
added that they have 65 people in their St aul office who could run numbers as well.
Also noted "vas that they get paid by the p oject and they bill on a not-to-exceed basis.
The members asked the average time fram for a new TIF district to be created and it was
stated they take approximately 45 days, a ding that they could be done in 30 days
depending on the timing in regard to noti fication dates.
6.
Consideration to a
of twin homes.
ment of 30 units
Koropchak provided the report stating Cy informed the commissioners of his interest to
develop approximately 2.5 to 3 acres of la d in the vicinity to the south of 6 Street and
Vine S1. He asked the HRA of their inter st in the concept and for TIF assistance in the
amount of $1 00.000.
It was suggested by the HRA to check if t e proposed scattered housing TIF District and
Cyr's project could be combined as one T F District and Koropchak stated that from a
TIF standpoint it could work as long as th 95% criteria is met; however. timing may be
an issue. The second round of awards for HF A funding is scheduled for September 27
and if awarded, thereafter will Sheri begin the process of acquiring parcels. The scattered
housing project was planned with a differ nt builder than Cyr but could still work.
Koropchak also stated that it appears deve opel'S approach the HRA for interest of TIF
and request assistance without completion of an application and having talked to their
lenders. no sketch plan of the proposed de elopment is submitted either. In this case.
Koropchak added that she has yet to see a map of the proposed boundaries nor received a
completed application. Although the HR wants to encourage development!
redevelopment. she suggested the commis "ioners remind developers to complete the
preliminary appl ication form prior to appearing at an HRA meeting. Also the concept
goes to the City Council prior to determin ng a level of TIF assistance.
Cyr provided a brief description of his proposal stating that there are 2 Yz acres owned by
Ron Ruff that hc is interested in acquiring as well. Cyr asked if the board would fund the
project if he were to only develop Lots 8. and 10. and either all or part of the proposed
vacated street. Lots 6 and 7 are owned by one person and are for sale. Lot 8 is owned by
the Grups, who were in attendance as well, and Cyr has a purchase agreement with them
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HRA Minutes - 09/05/01
which he stated he needed to act on within the next 30 days. Cyr's request is for up to
$100,000 for purchase and demolition. an his proposal is to build 6 to 8 units of twin
homes in four structures.
Cyr then proposed a larger project stating n owner of some parcels in that area is willing
to sell as well. Cyr is to arrive at a purcha e amount. If this worked, based on the square
footage. Lots 1-5 along with the aforemen ioned lots would have enough square footage
to allow for a PUD for 20 to 22 dwellings. If the City would vacate their street right-of-
ways and a triangular section as well, alon with the square footage stated, this would
support up to 36 market rate units of 1300 to 1400 sq. ft. with basements at a selling price
01'$159.900 to $169.900.
The members questioned how this density worked within that area and it was statcd that
the area is in the PZM district. Rick Wolf teller stated it was very likely the City would
choose to vacate those streets as they do n t lead anywhere and there are probably no
utilitics in place, or the need for any to be placed there.
Frie stated he liked the concept of replacin T older housing with newer and higher density.
Koropchak again noted that she had not ye received an application or fee from Cyr. Frie
also stated that he feels it is hard for the H to make a decision without that information
and Koropchak added they really need to 'now the number of units. Cyr asked if he were
to state he needed $100.000 to make this p oject work, and the HRA could provide only
$60.000. where then would the shortfall c me from.
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Lahr states he feels the HRA is interested ut they do need to see some numbers. As for
the shortfall, the City could possibly vacat the street. Koropchak states the application
needs to be submitted, then if the Council pproves. they would enter into a private
redevelopment contract and Cyr would ne d to pay $5,000. The HRA likes the concept
but cannot commit to a dollar amount. Cy asked for a letter of intent that they would
approve the funding if the numbers worke . Koropchak noted that the motion stated
much the same without a dollar amount. F ie stated that the other key would be if the
Council would approve to vacate. It was c arified that Cyr is asking for the City to vacate
the street in lieu of a portion ofTIF assista ceo
A MOTION WAS MADE BY DARRIN LAHR AND SECONDED BY BRAD
BARGER TO APPROVE THE PRELIMI ARY CONCEPT FOR ESTABLISHMENT
OF A HOUSING TIF DISTRICT WITH HE FINDING THAT THIS IS A UNIQUE
REQUEST IN THAT THERE IS CURRE TL Y A HOUSE IN PLACE THAT WOULD
NEED TO BE PURCHASED AND DEM LISHED; FORWARDING THE CONCEPT
TO "['HE COUNCIL FOR APPROVAL; A D SUBJECT TO COUNCIL APPROVAL,
AUTHORIZA TION TO ENTER INTO A RELIMINARY DEVELOPMENT
AGREEMENT. l'vlotion carried unanimou Iy.
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HRA Minutes - 09/05/0 I
I to cleanu the area alon Front Street.
Koropchak advised that at a previous H meeting the HRA authorized going out for
bids for demol ition and cleanup of the Bo tic, Schlief and Reed properties. However,
after a meeting with Hans Hagen, it was d cided to wait until the HRA gained possession
of the O'Connor parcel. Completing the c eanup as one project appeared to save money
in the long run and would provide a finish d pad site at a pre~determined grade level and
at 100% compaction. This is to be adjuste in the land price to Hagen. Koropchak added
that after the "test burn" and with the Buil ing Department issuing blight notices, the
Building Department received complaints f the remaining concrete foundation and
garages in the said area and therefore the ecision to solicit RFP's.
The RFP's were mailed to Schluender, Gu ling and Fyle and were due back at noon on
September 4, 2001 with work to be compl ted no later than September 21, 200 I.
Koropchak noted that only one bid was ret lrned, that being from Fyle and asked the HRA
if they preferred to resubmit or award to FIe.
Lahr asked if the HRA could reject and st rt over. The members suggested that possibly
Fred Patch could state that on a certain dat in October, all properties would be cleaned
up including the O'Connor property whic the City will then have possession of. Lahr
stated that he is still concerned that Hans agen will want something other than what the
HRA plans for the properties. Dan Frie st' ted that the HRA should demolish the
properties in October and then resume talk' with Hagen over the winter months to
determine exactly what Hagen is expectin< .
A MOTION WAS MADE BY BRAD BA GER AND SECONDED BY DARRIN
LAHR TO REJECT THE SOLE BID AN FOLLOWING THE CLOSING ON THE
O'CONNOR PROPERTY ON OCTOBE 3,2001, RESEND RFP'S ON ENTIRE SITE
AS A CLEAN SITE. Motion carried unanimously.
7.
Koropchak provided an update on the proj cts within TIF District No. 1-22, adding that
regarding the Amoco Site, Mr. Bjorklund as in to City Hall earlier that day regarding
assessments and stated Barry Fluth was reo dy to move forward on the project.
8.
A MOTION WAS MADE BY BRAD BA GER AND SECONDED BY DARRIN
LAlIR TO AUTHORIZE PAYMENT OF HE MONTHLY HRA BILLS. Motion
carried unanimously.
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9.
HRA Minutes - 09/05/01
Consideration of Executive Director's Re ort.
Koropchak provided the report adding tha regarding Fay-Mar, the company is in default
with no production left, and also asked th members if they wished for her to question
Mr. Musich regarding the number of jobs rom January of2001 to August 01'2001. They
agreed to not ask for accountability of the' obs. Koropchak also added that the plan to re-
instate the business retention/expansion vi 'its through the IDC would begin in October.
Also regarding a recent discussion Korop hak had with a land owner in Monticello, she
asked the members how they would feel a out providing TIF to relocate a warehouse
business to the industrial park. She added this would not be creating any new jobs. The
members stated they did not have enough nformation to make a decision at this time.
10. Committee Reports:
Marketing - Barger reported that the mark ting committee had reviewed the main
brochure and there is a need to update it l' r more current information. Xcel Energy will
contribute approximately one half of the c st to update. Lahr stated this would be
approximately $4,000. Total cost to upd' te and print is approximately $14,000.
A MOTION WAS MADE BY BRAD B RGERAND SECONDED BY DARRIN
LAHR TO ACCEPT THE MARKETING COMMITTEE REPORT TO UPDATE
BROCHURES WITH XCEL CONTRIB TING A PORTION OF $4,000. Motion
carried unanimously.
11.
Other Business. None
12.
Adjournment.
A MOTION WAS MADE BY DARRIN AHR AND SECONDED BY BRAD
BARGER TO ADJOURN THE MEETIN AT 9:15 PM. Motion carried unanimously.
HRA Chair
Recorder
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liRA Agenda - 10/03/01
5.
Consideration to discuss for a
West Broadway.
uisition of the Grassl lot located on
A. Reference and background:
Bill Grassl, owner of the vacant lot on We"'t Broadway between Pine and Walnut Streets,
called the lIRA otlice the day following th September II RA meeting. Mr. Grassl
wanted to know if the HRA or City was int ~rested in purchasing his vacant lot. The lot is
131 ft by 43 nor 5,633 sq ft. He has a bid of $45,000 from a private investor. Legal
description: W 17 n of Lot 10& E 26 ft of Lot 11, Block 35.
Within the Downtown Revitalization Plan, pedestrian walkways linking the parking
areas and the store fronts were identified 01 both sides of the 100th West Broadway
blocks. The FDA is currently working witl the City Planner Consultant, property owners
of Block 35, DA T, and the City to develop a design to include common trash areas and
improved parking immediately behind the tores. This to create a friendly, inviting
entrance to the buildings from the rear and 0 encourage greater use of the public parking
lot. From the perspective of the business 0 ner in order to accomplish this, the drainage
problem from the roofs of the buildings an the alley must be resolved. The City is
currently researching ifalley easements we'e deeded the city and recorded and preparing
cost estimates for installation ofa second c 1tch basin and lowering the alley grade by ten
inches. In the opinion of the City Planner \msultant, if these improvements arc
completed the pedestrian walkway on the lock 35 side is not so critical.
Mr. Grassl will be present at the meeting. ne question It)!" the HRA: Is there a public
purpose? Typically, the lIRA conducts an appraisal prior to purchase?
B. Alternative Action:
1. ^ motion to submit an ofTer in the anount of_____ .u for acquisition
of the parcel described as W 17 no 'Lot 10 & E 26 ft of Lot II, Block 35.
2. A motion to authorize an appraisal for the parcel described as W 17 ft of Lot 10&
E 26 ft of Lot 11, Block 35, with th intent to purchase.
3. A motion of no interest to acquire t e parcel described as W 17 n of Lot 10 & E
26 ft of Lot II, Block 35.
4. A motion to table any action.
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c.
Recommendation:
HRA Agenda - 10/03/01
The Administrator and Executive Director -ccommend alternative no. 3 based on the
comments from the city planner and that th ~re appears to be no public purpose. "fhis also
encourages private development.
D. SupDortinl! Data:
Map identifying parcel.
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HRA Agenda - 10/3/01
6.
Consideration to a
between the HRA and Hans Ha
District No. 1-22.
UPDATES
a) 218 Front Street site - On September 19,2001, I-IRA Attorney Bob Lindall, an intern,
and myself attended the court hearing and, ppeared before the Judge. Prior to the
hearing, Attorney Peterson agreed that the -'ity had created an HRA with the powers of
eminent domain and for the public purpose ofredevelopment. The subject property was
identified within the boundaries of the Cen ral Monticello Redevelopment Project Area
and TIF District No. 1-22 for redevelopme t and acquisition. Therefore no testifying
was necessary. On October 5. three comn1 ssioners will be appointed for view and
establishment of an acquisition price. A cl eck in the amount of $92,200 (the amount of
the HRA appraisal amount) was submitted for deposit with the County District Court
Administrator. In a September 21 letter t Attorney Peterson, Attorney Lindall served
the following documents: Notice of MotiOl and Motion; Memorandum of Law in
Support of Motion of Petitioner to Compel Delivery of Possession; Affidavit of Robert 1.
Lindall in Support of Motion; (Proposed) rder Compelling Delivery of Possession; and
Affidavit of Mailing. 'fhe order included <: possession date of October 2,2001 and the
Respondent O'Connor to incur the attorne s fees. costs and disbursements actually
incurred by the Petitioner.
b) Amoco site - The Contract between the IRA and Master's Fifth Avenue has been
signed by both parties. Barry is in Germat y for couple of weeks. It is my understanding
via Fred Patch that a preliminary sketch ot the building was very pleasing. The
apartments were designed as lofts meanin J the structure might have three floors. Flicker
informed me, he needs to vacate the site th~ end of September.
c) Four year knock down rule - I'm about cady to visit the County Auditor. I called the
county for the payable 2002 market values for purpose of projected tax increment. More
info at workshop.
CONSIDERATION TO APPROVE EXT Nl)ING THE EFFECTIVE DATE OF THE
PRELIMINARY AGREEMENT I3ETWE~',N THE HRA AND HANS HAGEN IIOMES.
A. Reference and hackground:
At the lIRA meeting in September, the co lmissioners rejected the bid from a contractor
f<')f demolition and cleanup of the Bostic, eed, and Sehlief properties. The decision
based on only one bid received and with tl e anticipated date of possession of the
O'Connor parcel, the commissioners felt ollars would be saved in the long run with the
ability to include the O'Connor demolitio as the same time. The HRA previously
HRA Agenda - 10/3/01
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determined the request of proposal scope t( be completed as a dean site and at unif<)Hn
grade. No fill to be brought in nor a comp ction 100%. You will recall at the last
meeting between the city stail, Mark Ruff, and Hans Ilagen; Ilan's suggestion and
request was for a finished pad site at 1000;;) compaction. From his position, completing
the demol ition and dean-up as a finished p d site at 100% compaction would save dollars
in the overall costs for redevelopment. fr m his position whether he is the redeveloper or
another firm, the HRA should market a fin shed pad site with 100% compaction. Ifit is
the goal ofthc City for single f~1l11ily, high ensity, owner-occupied homes, the site
preparation would be the same.
In my conversation with Hans and his will'ngness to extend the effective date of the
Preliminary Agreement depends on wheth l' the site is completed as a finished pad site
with 100% compaction. lie is willing to p oyide the lIRA with a request for proposal
outlining the specific scope or specs. Eith l' Hans or another individual from his firm will
attend the HRA meeting to answer questio s of the liRA. One question for the HRA:
What is the expected increase in cost to pI' vidc a finished pad site at 100% and how is
the increased cost handled? Although the e arc other redevelopers around, is the lIRA
comfortable without a preliminary agreem nt in place with the up-front dollars invested
by the HRA? I'm requesting a print-out 1'1' m the Finance Department of the dollars
invested by the HRA for Block 54.
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As it stands currently and given the directi . n of the liRA in September, the August 21
request for proposal with the addition of tl e O'Connor property will be resubmitted as
soon as the lIRA gets possession of the O'Connor property. It is important to act
quickly as the O'Connor property will nee to have utilities removed and capped prior to
demolition. The City has been patient wit the liRA relative to neighbor and citizen's
concerns of blight and it is important to cl an up and prep the site before frost sets in. If
the HRA prefers to extend the effective da e within the agreement with Hans Hagen,
please consider the following action.
B, Alternative Action:
1. A motion to authorize a request 1'0 proposal to include completion of a finished
pad sitc at 100% compaction and D approve extending the eflective date from
October 2001 to ._ within the Preliminary Agreement
between the HRA and Hans Hagel Homes.
C. Recommendation:
The recommendation of the City Adminis rator and the Executive Director is alternative
no.!. It appears the need for a finished p' d site at 1001X) compaction is necessary for
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HRA Agenda - 10/3/01
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future development and the price of thc Ian will be negotiated accordingly. It is
recommended that Hans Hagen Homcs pro ide the specs for the request for proposal. It
is also recommended the effective date be xtended to at least April 1,2002. If the liRA
disagrees with the Administrator's recomm~ndation, no motion is necessary and the
Executive Director will proceed with maili g the request t()r proposal for completion of a
clean site with no till. The Preliminary A 'reement with Hans Hagen would be null and
void and the deposit returned. In the future the HRA would issue a request for proposal
for development of the site. Rememher, tl e 90-day quick take was deemed necessary hy
the HRA to obtain possession in a timely n anneI' in order to proceed with the planned
project (Preliminary Agreement).
D. Supporting Data:
HRA expenditures and copy of request for roposal as submitted by I Tans Hagen Homes.
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R-lL-20n8Sv 1
MNI90-g0
a9-21-01 11 :51
From-KENNEDY & GRAVEN
Kenlledy
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(~ raven
47u !'IU.l>Ury Ct:me.r
:lOO S\,l~,h ~iJl.,h Stree,
M'l1l1c1pclis MN 55402
(612) 337-9300 Cdephcno;;
(612) 337.9310 fa....
http://www.J..c:nncdy-gr:lVen com
H A R
E R
September 21,2001
Ms. Olive Koropchak
City of Monticello
505 Walnut Street, SL1ite 1
Monticello, N1N 55362~8822
+6123379310
TR725 P.02/02 F-397
ROHER'!" J-LINDiUL
Mlomc:y ~,L~w
D'rcct Dl;l,l (012) 337-9219
.C~ll1tic:" R<:all'.opc:ny Law SI"'c.:...lc.t
VIA FACSIMILE
763-295-4404
AND U.S. MAlL
RE: Monticello Housing and Redevelopmtnt uthority v. Michael I. O'Connor. et al
Wright County District Court File No. C -01-1924
Dear Ollie:
Please arrange for issuance of a check payable to W . ght County District Coun Administrator as rhe
quick rake deposit to be made regarcling the above eferenced maner in the amount of $92.200 and
send it to rue as soon as possible so that! may eposit ir before I make my motion to compel
delivery of possession. ! will deposit it with the Co as soon as possible after I receive it.
If yOLl have any questions, please give me a caU.
v try lruly yours.
U
Robert 1. LindaU
RlL:pcb
cc: Dan Greensweig
\'3
11l- S g r? S \ 0 \
.
Ceo .\\)
.C:~(tltic4 by Mllhll:liOla S(:!.\l: \:lur ~1"t&Oll
CITY OF MO TICELLO
ACCOUNTS YABLE
505 WALNUT STRE T. SUITE 1
MONTICEllO, N 55362
763-295,2 11
-24-2001
75.1864
9f()
NO. 66243
MARQUETTE BANK. MONTICELLO. P.o. BOX 729
Mo.NTICEllo., MINNESOTA 55362. (763) 295.2952
CHECK NO.
AMOUNT
66243
$92,200.00
Ninty Two Thousand Two Hundred and no/100 Dollars * * * * * *
PAY TO
THE
ORDER
OF
Wright Co District Court Administrator
Wright County Court House
10 NW 2nd Street Room
Buffalo, MN 55313
1110 b b 2 L, :1111 I: 0 ~ ~ 0 ~ b b L, ? I:
213.46583.5101
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? bOO 0 ~ ? II-
M. O'Connor File C2- 1-1924
.
.
CITY OF MONTICELLO. MONTICE LO, MN 55362
$92,200.00
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7.
liRA Agenda - 10/03/01
Consideration of authorizin a ment 0 monthl HRA hills.
Recommendation is to authorize payment f bills.
Acquisition
Conworth, Inc.
4725 Excelsior Boulevard
Suite #200
Minneapolis, MN 55416
Ollie Koropchak
Executive Director
Monticello Housing & Redevelopment Authority
Monticello City Hall
505 Walnut St., Suite 1
Monticello, MN 55326-8831
AUGUST SERVICES - MONTICELLO PROJEC
O'Connor
September 5,2001
INVOICE
Phone (952) 929-0044
Fax (952) 929-0568
Toll Free 1-877-805-1575
.
Talk with O'Connor r garding referrals and comparables.
Research referrals.
Write letter to O'Co or forwarding referrals.
').;\I>J
~ \ '\~
'b~ .
u.,\.tS
TOTAL HOURS E ENDED
AT $70.00 PER HO
.
ACQUISITION AND RELOCATION
2.25
$157.50
.
Economic Develoi ment lJ pdate
Septem her; 6, 2001
by Ollie Ko opchak
Industrial Marketing Brochure - The Marketing C mmittee made up of two HRA commissioners
and three I DC members arc moving forward with pdating the industrial brochure. At the
current rate of mailing 100 per month, the 1998 br chure will be used up by the first of the year.
We arc using the same firm, Lecy Design, to upda e the brochure. Cost for reprint $9,000 and
updates $5,000. Four photos will be replaced: TC )C replaces Midwest Graphics, Sunny hTSh
replaces H- Window, high school main street repla cs high school construction, and replacement
oflender in order to rotate among the local lender'. We may add a photo of the community
center and include commercial in the text for purp se of marketing for commercial development.
Photo shots scheduled for the next two weeks. Th marketing fund budget has a remaining
balance to cover the costs and Xed Energy, I belie e, is committing $4,000 toward the update.
This the update to the Council September 10. The liRA approved the marketing committee
moving ahead with the brochure update on Scpten bel' 5. Sept. 1 I photographed high school,
aquatic area community center, and Marquette Bm k personnel. Sept. 18 plans to photograph
TCDC and Sunny Fresh. Marketing Committee t meet September 28 to review photo lay-out.
GWJ, LLC dba EDMA Company - Grading is und I' way for the 10,000 sq ft building along
Dundas Circle. A week delay was due to a disput in the interpretation of the casement setback
Cor the natural gas line running through the corner )f the parcel. To meet the construction
. completion date, no ground breaking will be held.
Fay-Mar Building ~ In a conversation with Ron M Isich, the building has been completely
vacated. Production moved to Ohio and down-siz d. As to Fay-Mar leasing 2,500 sq ft in Big
Lake, this is false. Working with Plymouth eomp ny to lease one-half spaee creating about 20
jobs this via Eric Bondhus. See attached certified letter lnailed to Musich relative to TIF.
II-Window -.~ is a copy of the letter addre sed to Randy Hatcher ofUMC following the
IDC August meeting. Contact person as given by an Allen and Tapper. On September 12,
Mayor BcIsaas, the real estate agent, II-Window I' presentative,S UMC representatives, and
myself toured the facility. Two individuals includ ng the owner, Don Tomann, joined Tapper,
Mary Barger, O'Neill and myself for lunch. 1.'0110 ing the lunch other options were presented
and highlights of Monti toured. They liked the co nmunity, were very impressed with
Monticello marketing efforts, and of the five indiv duals all but one I ived in the St.
Michael/Silver Creek area. Must make a decision y January/February. Own 46 acres adjacent
to existing facility - need municipal infrastructure mprovements for expansion. 100 employees,
they specialize in medical, aviation, and commerci I jobs. 9.5 million in sales in 2000.
Allied COlnpanies - Attached market efflJrts for Ie' se space prior to development a business park
along East 7 Street. No building plans to City.
.
Dynamic Engineering - A,Uad'ied letter promoting onticello.
.
.
.
September 17 - Meeting with Sharon Mros and M rquette Bank associate relative to potential
redevelop and development public/private efforts.
EDAM meeting - September 20, noon, Stillwater.
Production Stamping - Need to call Les Wurm ag, in.
WIHA expansion - In talking with Paul Allen plan' for the 16,000 sq ft expansion should begin
this fall or upon issuance of huilding permits. Ine ease in sales and new programs.
Mike Cyr project along 61h Street and Vine Street - The Planning Commission at their October 2
meeting is asked to consider approval of a concept residential stage planned unit development.
As you recalL the lIRA gave concept approval fi)f use ofTIF requesting the concept be
forwarded to the Council for approval. The Coun il approved the concept for use ofTIF suhject
to holding a public hearing on the vacation of Vin and East 7 Street and the Planning
Commission to approve a planned unit developme n. The council was in agreement that in
vacating the Vine or 7 Street with the city maintail ing an access to the Ruff parcel. The date of
the Council public hearing has not been set. I advised Cyr. it was not necessary to come back to
the HR^ for commencing ora TIF District or dete mination oflevc\ ofTIF assistance until he's
sure of the project scope or size.
MHF ^ Grant - I'll report at the meeting if Montie 110 's scattering house grant was awarded.
September 27 is the date projects were awarded or funded.
St. I Icnry's project ~ In a voice mail via JelT, the I' developer is moving ahead with
redevelopment plans for the St. I Icnry's property. He has a purchase agreement from the church.
It is my understanding he'll come hefore the HRA requesting assistance.
Right Choice - I will attach the letter to Right Cho ce, if prepared in time, relative to the HRA
assistance with TIF and inquiring to the intent oftl e business since a lease or for sale sign is
staked on the property. I was told the remaining e lployees were given a two-weeks notice or
notice to transfer to another location.
MONTICELLO
Mr. Ronald S. Musich
27] 5 Pioneer Trail
Medina, MN 55340
Scptcmbe 7,200]
Re: Second Amended and Restated Contract fI r Private Redevelopment by and between the
Housing and Redevelopment Authority in and for the City of Monticello, M inncsota, and
Ronald S. Musich.
Dear Mr. Musich:
It is with regret that I write you this letter relative to the closing of the Fay-Mar Tube & Metal
Fabricators, Inc. in Monticello. The community as proud to have Fay-Mar among its industries
and wishes the company success. Additionally, tl e community will work in a cooperative spirit
to recruit a new industrial business to fill the vac ncy.
.
Relative to the Second Amended and Restated C ntract for Private Redevelopment by and
between IIousing and Redevelopment Authority ( he "Authority"') in and for the City of
Monticello, Minnesota. and Ronald S. Musich (th ~ "Redeveloper") dated June 2, ] 997: Upon
expansion of the Fay-Mar facility in 1997, the Auhority agreed to reimburse the Redeveloper for
Site Improvements in the maximum amount of $50,000. Upon documentation and according to
the Contract the Authority agreed to pay the Red vel opel' in semi-annual installments with
interest at the rate of seven percent per annum on ach Payment Date commencing August 1,
1997 and concluding no later than the Terminatio 1 Date in the amount of Available Tax
Increment I nterest shall accrue from the date the Redeveloper provides the Authority with the
appropriate documentation. The appropriate docL mentation was submitted December 1 I, 1999.
Sections 3.1. to 3.9. Ac uisition and Conve anee of Pro )ert I: Public 1m Jrovements.
Additionally. the Redeveloper agreed to create a I et increase of at least 20 new jobs in Minnesota
with an average wage of $8.50 per hour by no lat l' than two years after the first date of which the
Redeveloper receives a Certificate of Completion Certificate of Completion dated February] 1,
1998. Section 3.10. and 3.1 ]. Wane and Job Co enants and Records.
ARTICLE X, Additional Provisions. Section 10.3. Restrictions of Use. The Redeveloper agrees
that the Redeveloper, and such successors and ass'gns shall devote the Redevelopment Property
to, the operation of the Minimum Improvements s a manufacturing facility, and shall not
. .............
Monticello City Hall, 505 Walnut Street, Suite I, MonticeIl ,MN 55362-8831 . (763) 295-2711 . Fax: (763) 295-4404
Office of Public Works, 909 Golf Course Rd., Monticel 0, MN 55362 . (763) 295-3170. Fax: (763) 271-3272
.
.
.
Mr. Musich
September 7, 200 I
Page 2
Since the t~lcility located at 307 Chelsea Road, Mo ticello, Minnesota, no longer operates as a
manuL'lcturing bcility as of September 1,200 I, the obligations of the Authority cease. However,
if the facility is sold and is operated as a manut~lcturing tacility, the Contract can be assigned.
Fees associated with assigning the Contract would ot be the obligation of the Authority. This
letter serves as the thirty days vvritten notice of deL ult under the Agreement.
Should you have any questions, please call me at 7 3-271-3208.
Sincerely,
HOUSING AND REDEVELOPMENT AUTHORI fV
IN AND FOR THE CITY OF MONTICELLO
Q)~ \~Cl\O,-.O~
Ollie Koropchak
Executive Director
c:
Dan Greensweig, HRA Attorney
Roger Belsaas, Mayor of Monticello
Rick Wolfsteller, City Administrator
TIF District No. 1-17 File
OWN 0 LE,ASE
Monticello Busine s Condominiums
7th Stre t East
Monticello, innesota
.
Built -To-Suit
- Office / Showroom - Warehouse
- Office / Warehouse
. Available Summer 2002
.
.
120,000 Sq. Ft. Business Park (approx.)
- Sizes from 3,000 to 20,000 Sq. Ft.
. All Spaces Self Contained - Private
Restrooms, Utilities Metered Seperately, &
your own drive in and/or truck high dock
door
. Prime Location:
- Easy Access & Highly Visible from 1-94
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Septem bel' 7, 2001
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MONTICELLO
Mr. Emmet Hanratty
Right Choice Fulfillinent Services, Inc.
11701 North 95 Avenue
Maple Grove, MN 55369
Re: 9600 Fallon Avenue, Monticello, MN
Dear Mr. Hanratty:
In viewing the Monticello Industrial Park area, it was I oted a "for lease or sale sign" is posted on the
property located at 9600 Fallon Avenue. As Econom i Development Director for the City of Monticello,
it is important to keep abreast of the industrial activity within our community. The City does receive
inquiries from business owners or brokerage t~rms 100 ing for available industrial space for lease or for
sale. For example: .Just a couple of\veeks ago, arran ements were made with the rcal estate agent and
business owner through this omce to show the I-I-Win ow bcility. Our bottom-line objective is to
encourage and maintain a vibrant, economical commul ity where job creation and building occupancy is
maximized. I would appreciate a telephone call to dis uss the future plans for the t~lcility located along
Fallon Avenue and to discuss if and how I might best ssist Right Choice.
Additionally, there exists a Contract for Private Redev lopment between the Housing and
Redevelopment Authority (HRA) in and for the City 0 'Monticello, Minnesota, and Right Choice
Fulfillment Services, Inc.; therefore, the HRA would a preciate a status report on the industrial activity
within the facility.
Please call me at 763-271-3208 to discuss the status ot the hlCility and how I might assist Right Choice
in marketing their t~lCility.
Sincerely,
IIOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO, MINN 'SOTA
G~ \<u>"JJ~
Ollie Koropchak
Executive Director
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HRA File
Monticello City Hall, 505 Walnut Street, Suite I, Monticello, MN 55362-8831 . (763) 295-2711 . Fax: (763) 295-4404
Office of Public Works, 909 Golf Course Rd., Monticell ,MN 55362 . (763) 295-3] 70. Fax: (763) 271-3272
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WOl~Kc HOP
8:00 P.M.
DOES THlj: HRA WANT TO PROCIU:O WITH REDEVI{LOPMENT OF THI{
DOWNTOWN 0 {. BLOCK 52'!
1. Review of current activities within TIF istrict 1-22. Koropchak
2. Recap tax increment available to procee and impact of 5-year rule and 2 million
dollar bond sold. Present a preliminary time schedule in order to complete a project
given the 5-year rule and 2 million dolla bond issuance. Mark Ruff
3. Are there other funding options for us t consider'! Mark Ruff
4. Direction given by the City Council for edevelopment of Block 52. Work with
interested sellers and no use of eminent omain.
HOW DOES THE ECONOMY AND DEMAN) FOR SPACE IMPACT OUR DECISION?
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Is there merit in a marketing study by J m McComb and how will it differ from the
Hoisington and MCP study'! Of the 22,000 sq ft under construction by Vaugh Veit,
7WX, is leased or 7,000 sq ft remain acco ding to Ken Barthel.
ARE WE BETTER OFF GOING OUT OR A RI!:QUEST FOR PROPOSAL'!
I. Who arc the interested sellers? What i the size or scope of the pro,ject? Is there a
targeted use desired'! How will the proj et connect with Walnut Street, the park,
and the river'!
2. How or what will encourage more peopl to the downtown area'!
IS THE HRA IN AGREEMENT TO PROCI!:I!:D WITH A PLAN FOR
REDEVI~LOPMEN OF BLOCK 52?
WHAT IS THE NEXT STEP I CARRYING OUT A PLAN
FOR REDEVELOPM NT OF BLOCK 52?
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LIST Of ACTIVITIES WITHIN TIF DISTRICT NO. 1-22
1. Community Center/City Hall Development
2. Cub Store Redevelopment
3. Sunny Fresh Expansion
4. Locust Street Development
5. First Minnesota Bank Redevelopment
6. Marquette Rank Redevelopment
7. Grimsmo Chapel Redevelopment
8. Town Centre Development
9. Liquor Store Renovation
10. Amoco Redevelopment
11. Front Street Redevelopment
12. Broadway Street Improvement
13. Walnut Street Sidewalk Improvement to 4th St "eet
14. West Bridge Park Improvements Landscaping Playground Equip
Completed
Completed
Completed
Completed
Completed
Completed
Completed
In Progress
Pending
In Progress
I n Progress
Summer 2002
In Progress
In Progress
HOUSING ADDED OR REPLA - EMENT IN THE CORE AREA
I. Front Street
2. Amoco Site
3. Scattered Housing
4. Anderson
5. Cyr 5th and Elm
6. Cyr 6lh and Vine
7. Veit E 7 St
8. S1. Henry's
10 units
8 units
10 units
4 units
2 units
33 units
35 units
32 units
owner-occupied
rental
I/m owner-occupied
owner-occupied
owner-occupied
owner-occupied
Rental
Rental
I n Progress
In Progress
Pending
In Progress
1 n Progress
Proposed
Pending
Proposed