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HRA Agenda 09-05-2001 . 1. 2. ., .J. 4. . 5. 5. AGE DA MONTICELLO HOLJSING AND R DEVELOPMENT AUTHORITY Wednesday, Septembe 5,2001 - 7:00 p.m. 505 Walnut Street - Bridge Room Commissioners: Chair Dan Frie. Vice Chair' rad Barger, Steve Andrews, Darrin Lahr, and Bob Murray. Council l,iaison: Brian Stumpf Staff: Rick Wolfsteller, Ollie Koropchak, and Lo i Kraemer. Guests: Paul Steinmen and Jerry Shannon. ,'pringsted, Inc. Mike Cye MLC Building and Rern ldeling Call to Order. Consideration to approve the July I L 2001 and August I, 2001 liRA minutes. Consideration of adding or renlOving items from the agenda. Consent Agenda. Consideration to hear a presentation by puh ic finance advisors, Springsted, Inc. Consideration to approve preliminary cone pt of use of'TIF for development of 30 units of t'.vin homes. 6. Consideration to award request fix proposal to cleanup the area along Front Street. 7. Consideration of an update on projects with n 'fIF District No. 1~22. 8. Consideration of authorizing payment of m( nthly HRA bills. 9. Consideration of Executive Director's Repwt. ] O. Committee Reports: Marketing - Barger II. Other Business. 12. Adjournment. . . . . MIN TES MONTICELLO HOUSING AND EDEVELOPMENT AUTHORITY Wednesday, July 11,2001 - 7:00 p.m. 505 Walnut Stre t - Bridge Room Commissioners Present: Chair Dan Frie, Vi e Chair Brad Barger, Steve Andrews, and Bob Murray. Absent: Commissioner Darrin Lahr and C uncil Liaison Brian Stumpf. Staff Present: Rick W olfsteller and Ollie Karope ak. Staff Absent: Lori Kraemer. Guests: Brad Johnson. Lotus Realty Servie s, Inc. Barry Fluth, Masters Fifth A venue Inc. Pat O'DonnelL Smith & Associate Mike Cyr. MLC Building and Re odeling Mark Ruff, Ehlers & Associates Sheri Harris, Central Minnesota H using Partnership, Inc. John Kopy and Judy Grenier I. Call to Order. Chair Frie called the HRA meeting to orde at 7: 10 p.m. 2. Consideration to a rove the June 6 2001 RA minutes. Barger inquired to whether Lake Tool was not interested in selling land to EDMA Company per the June Executive Report. oropchak noted that was true in June; however, the July report notes Lake Tool i terest to sell. Brad Barger made a motion to approve the .fllne 6. 200} HRA minutes. h Murray seconded the motion and yvith no corrections or additions. the minutes were tpproved as written. 3. Consideration of addinn or removin items from the agenda. None. 4. Consent Agenda. None. . . . HRA Minutes - 7/11101 5. Consideration of an u date on the im act to TIF relative to the Le islative Tax Bill and a recommendation to the Citv Council to c nsider issuin a Tern orar Bond. Financial Consultant Mark Ruff, Ehlers Associates, summarized the impact to tax increment as a result of the Omnibus Tax ill adopted by the 200 I Legislation. The impact varies among communities depen ing upon the type of TIF projects. Monticello's impact is minimal due to a conservative a ount of debt. The classification rate reduction for commercial/industrial results in a 40% reduction in tax capacity. However. with the implementation of the state wide business tax, the reduction result is 10%. For the purpose of tax increment the state busine s tax is not collected. The Bill encourages apartment ownership. It goes to say if on pays less taxes, one collects less tax increment. The Bill includes a provision t apply for a grant for TIF shortfalls; however, there is no help for TIF pay-as-you-go fin. nce methods and no protection for inter-fund loans. The good news is there is no more ACA Penalty and the education tax levy such as bond referumdums is collectable for tax increment. Bubul, Wolfsteller. Koropchak, and Ruff have had several conference calls to discuss the benefits of selling Temporary Bonds which would accelerate funds for th inter-fund loans betw-een the City/HRA and HRA General Fund/TIF and for future projects within the downtown These bonds need to be sold by August I, 2001. From a proc ss standpoint. this is doable. The City Council would authorize the sale of tempo ary bonds at the July 23 Council meeting. The Temporary Bonds at a fixed rate of ap roximately 5.5% for three years. The bond amount suggested ranges between $1.5 to 2.5 million based on existing debt and projects in the pipeline. The bonds are tax ble temporary bonds requiring at least 20% tax increment. Rutl suggested issuance of he bonds because first, it extends the life of the 5-year rule for the Downtown TIF Dist ict by two years or until August I. 2004 (three years from date of bond sale) allowing tim to complete projects in the pipeline and future redevelopment projects. Secondly. i provides protection for the existing internal loans and lastly. it provides the option to a ply tor a grant if a shortfall would occur although not anticipated. Steve Andrews m ,de a motion recommending the City Council sell Temporary Bonds in the amount of 52. r. 00. 000 net proceedsj()r the reasons noted ahove. Boh Alurruy seconded the motion. {emhers inquired as to the issuance costsfor the honds. RL!ffresponded. underwriter 'sfi e hy hasis points (?f 50-100 perhaps up to 520. 000. no costsfhr hond rating as tempO! my hond.\' are not rated. and EhlerslBuhul costs hetween 512. ()OO to 513. OOOlhr a tota hetll'een 530. ()OO to 533, ()OU With no fitrther discussion. the motion passed on a -0 vote_ The Commissioners then called for a special HRA meeting of Monday, July 23. 2001. 6:30 p.m. to adopt a resolution pledging tax increment for repayment of the Tempor'ry Bonds. 2 . . . 7. 6. HRA Minutes - 7/11/01 Consideration to re~review and re-affirm he level ofTIF assistance for the ro osed Housin 7 District associated with the MH A Monticello a lication. Sheri Harris, Central Minnesota Housing Partnership, informed the commissioners that the application submitted in March receiv d no red marks as far as the application itself. The grant was not awarded due to a lack f a targeted population and the limited amount of funding available (more projects than ollars.) As the City remains interested in the project and has purchased the Kauffmann property, Harris requested the BRA to re-affirm the level of TIF assistance prior to re-sub itting the MHF A application on July 13. Since the March TIF approval. the class r tes were amended via the Omnibus Tax Bill. Ehlers re-ran the "fIF Cashflows based on the reduced housing class rates; however, the net present value of tax increment did not change significantly. Koropchak noted: Based on the TIF Cashf10w (no inflation . ctor) the project would generate $89,623 NPV over 25 years and the level of assistance a proved in March was $125,000 for a gap of $35,377. The HRA approval was based 0 a selling price of $131,000 per unit. Harris informed the commissioners that the maxi urn selling price is $120.000 including closing costs. In order to qualify for other gap financing programs used to make the project cashtlow, the mortgage amounts a e between $85,000 to $95,000 and income level are between $28.000 to $30,000. Th up-front TIF assistance of $125,000 is used to buy down the land acquisition costs estim ted at $300,000. The BRA discussed using TIF for both creation of jobs with livable ages and to encourage low-end housing. Previously the C uunci I supported housing f higher value: however. they have supported the scattered housing project for this area s a redevelopment project. Andrews felt the level of TIF assistance was too much. The HRA was also concerned about the quality of housing and suggested an association with protective covenants for outside maintenance of snow removal. landscaping, etc. Mark uff felt the project would cash flow at the level of assistance ($125,000) with an infl tion factor added over 25 years. Koropchak asked: Where does the HRA plan to get th $125,000 up-front dollars? Seeing the project as u redevelopment project and su gesting the development of protective covenantsjiJr exterior maintenunce. Brad arger made a motion to re-affirm the A;[arch 7. 2001 motion: To approre the preliminar conceptf()r use qlTfF in the amount of 5125.000 NP V 10 assist H'ith a scattered housing project and to >I'oire the 55.000 applicationfee Seconded hy Boh /v/urray II1d with nofilrther discussion. the motion pussed on a 3-/l'Ote. Yeas: Barger, Alurr( v, and Frie. Nuys: Andrews. Ahsenr: Lahr. nce t for use of TI F relative to the , and 8, Block 36. Contractor Mike Cyr presented a concept f r redevelopment of a portion of Block 36. The redevelopment to consist of the demoli ion or removal of the two houses along the 200 block of Walnut Stred for construction of a two story, 4,500 sq ft per noor, oi1ice I ., .J . . . HRA Minutes - 7/11/01 building. The investment group are Smit ,Paulson, O'Donnell & Associates, PLC and Carlson/White Insurance Agency. Cyr d vided the projects into Project 1, the office building and Project 2, parking. Estimat d redevelopment and construction costs for the office building was $1,329.000 including $275,000 for acquisition costs. Qualifying TIF expenditures. according to Cyr, totaled $ 49.000 and the amount ofTIF requested was $328,000 for Project 1. With no Prelimi ary Development Agreement executed nor collection of the $5.000 fee. no cashtlow have been run. Project 2 for parking development (Smith, City. and Hamond arcels) was estimated at a costs of $138,000 which includes the acquisition of the Kopy storage garage for $50,000. Based on estimated construction costs and qualifyi g TIF expenditures, Cyr requested up-front TIF assistance in the amount of $140.000 for arking development. Additionally, Cyr presented a Letter of Intent for shared par 'ing signed by Hamond, Paulson, Fluth, Kopy, and Smith and an Option to purchase a st rage building for $50.000 between Cyr and Kopy. Amount of parking stall required as not determined by staff. Mark Ruff informed the HRA this redevelopment pr ~ect requires answering some policy questions: Are the houses substandard'? Bench mark t for TIF. 15 years ($110,000, 8%). Is the land value reasonable? Does the HRA want re evelopment? What about parking deficiency? No appraisals of the existing structures ha been completed. Koropchak noted that the HRA is requested to consider approving t e preliminary concept for use ofTIF assistance. If approved. the concept will e forwarded to the City Council. The commissioners agreed, they liked the gen ral concept for redevelopment of the northerly half of Block 36 and there is a willingness of the property owners. The HRA suggested the developers refine the numbers and for 'taffto work on the parking stall requirements. Brad Barger made a motion to approve th preliminary concept for use ofTIF relative to the redevelopment ofa portion of Lots -I, ,6, 7 & 8, Block 36 andfor parking development. The motion was seconded b Bob A'furray and with nofurther discussion, the motion passed unanimously. 8. Consideration to ado t a resolution cnteri and between the HRA and Masters Fifth into the Contract for Private Develo venue Inc. The HRA commissioners received excerpt of the Contract for Private Development as drafted by Kennedy & Graven per the H motion of June 6. 2001. Koropchak suggested the up to $45.000 for parking de elopment off-site be tied to the Hamond, Paulson, and Kopy parcels. Brad Johnson resented a list of comments relative to the Contract. Bused on the proposed 0 'Donnell and parking projects and the June HRA motion Hhich included extending the effect've date of the Preliminary Agreement 'with Alaster's Fifih Al'enue to August !. 200!: , teve Andrelvs made a motion to table any action. ,,",'ecom/ed hy Brad Barger and wit no.fill,ther discussion. the motion passed unanimolls~v. 4 . . . HRA Minutes - 7/11/01 9. Consideration to acce t a counter-offer f r the ro ert located at 218 Front Street. Since the agenda preparation, the HRA r ceived a written counter-offer of $163,000 from O'Connor via Attorney Peterson. The co Inter-otTer based on an appraisal obtained by O'Connor. The offer based on the apprai ed value of$148,000 plus $15,000 lost income. The HRA offer of May 15 was $145,383 as based on an HRA appraisal of $92,200 (October 10, 2(00) plus lost income and elocation benefits. The HRA compared the two appraisals. It was the opinion of the H Attorney and Relocation Consultant that the verbal counter-otTer from O'Connor ofJune 22 ($155,000) may be reasonable considering the additional costs to prucee with eminent domain. After revinl'inR the infOrmation. the HRA commissioners, in "I agreement. rejected the cOllnter-(?tfer (?! 5163.000. 10. Consideration to authorize solicitinu bids or demolition/cleanu at 3 Walnut Street. 220 Front Street. and Locust Street. Koropchak informed the commissioners tl at the judge signed the Quiet Title Action order for the Bostic property on July 10, 2 01, allowing the Fire Department to proceed with the scheduled "test burn" on Sunday, July 15, 2001. All utilities were scheduled for removal by July 6. In lieu of the time lap e between the scheduled test burn and the completion of the eminent domain for the 18 Front Street prope11y, the HRA is requested to authorize soliciting of bids fo demolition/cleanup including compaction testing. A meeting with Hans Hagen, Mar' RufC and city staff is scheduled for July 23. Boh Murray made a motion to authorize sc/icitation (?lhidsfor demolition/cleanup of the properties located al 3 Walnul Slreet. 220 ront ""treel. and 8 Locust Street. Brad Barger seconded the motion and with no jilrther dscussion, the motion passed unanimously. 11. Consideration to discuss amendin the wa e level criteria within the Business Subsid Criteria of the HRA and callino for a ubli hearinu. Brad Barger made a motion to tahle any a Non and requested stc(jlresearch level wages <?lsurrounding communities. Steve Am/rev s seconded Ihe motion and 1l'ith nojzlrther discllssion. the motion passed IInunimously. 12. Consideration of authorizing a ment ofm nthlv ERA bills. Boh ivlurray made a motion authorizing pa. ment <?lthe monthly HRA. hill..,.. .')'teve AndrCll's seconded the motion and 1l'ith no. 'lrther discllssion. the Inotion pussed IInanimously 5 . . . 13. Consideration of Executive Director's Re ort. HRA Minutes - 7/11/01 The commissioners accepted the writteneport of the Executive Director with the following additions: Marketing Committ e scheduled to meet Thursday, July 26, 7:30 a.m. and EDA scheduled to meet Thursd y, July 19,4:00 p.m. 14. Committee Reports: None. 15. Other Business. None. 16. Adiournment. Boh Murray made a motion to adjourn th HRA meeting afJuly J J, 2001. Brad Burger seconded the motion and with no fitrther usiness, the meeting adjourned at 10: J () p. m. HRA Chair 6 Ollie Koropchak, Recorder . . . MIN TES MONTICELLO HOUSING AND EDEVELOPMENT AUTHORITY Wednesday, Augus 1,2001 - 7:00 p.m. 505 Walnut Stre t - Bridge Room Members Present: Chair Dan Frie, Vice Chai Brad Barger, Steve Andrews, Darrin Lahr, and Bob Murray Absent: City Council Liaison Bria Staff: Rick Wolfsteller, Ollie Ko opchak, and Lori Kraemer. Guests: Brad Johnson. Lotus Realt Services, Inc. Barry Fluth, Masters Fifth venue, Inc. Pat O'DonnelL Smith & A sociates Mike Cyr. MLC Building a d Remodeling 1. Call to Order. Vice Chair Brad Barger called the meeting to order at 7:00 p.m. Chair Frie then arrived. 2. Consideration to a rove the Julv 23. 2001 s ecial HRA meetin r minutes. A MOTION WAS MADE BY DARRIN L HR AND SECONDED BY STEVE ANDREWS TO APPROVE THE MINUT S OF THE JUL Y 23, 2001 SPECIAL HRA MEETING. Motion carried unanimously. It was noted by Ollie Koropchak, Executiv Director, that the minutes of the regular HRA meeting ofJuly 11, 2001 were not availabl and would be provided at a later date. 3. Consideration of addina or removin J items rom the a renda. Koropchak stated that Mike Cyr wished to dd a short presentation, this was listed as 7B. Koropchak added an update regarding the a nllal city budget, this was listed as 9B. 4. Consent Agenda. N/ A 5. Consideration to authorize HRA Attornev t A!.!reement bet\veen the HRA and Smith & ment Ollie Koropchak provided the staff reportin Mike Cyr. proposed builder for the redevelo concept and financial presentation to the I-I advising that at the July HRA meeting, ment project of the Smith legal firm, made a . The HRA approved the preliminary . HRA Minutes - 08/01/0l concept for Project I (office building) an Project II (joint parking). No level of TIF assistance was defined and it was suggested for the developer refine the numbers. The parking requirement issues were referred 0 the planning staff. Additionally, Cyr submitted a copy of letters of intent for s ared parking and option to purchase storage building. Koropchak also provided the c shf10ws which reflect the new class rates, as well as a summary of Cyr's financial nu bel's of July 1 I. At a stafTmeeting among O'Neill, Johnson, Cyr, and Koropchak, it was determined through calculation of the existing and pI' posed building space the number of parking spaces required. The shortage was 23 sta Is at $ I ,400 = $32,200. Assuming the City would allow a cross easement the parkin development costs including parking for Amoco site and contribution totaled $172 200. $140.000 development + $32200 deficiency = $172200 - $45,000 approve = additional request of $ I 27,200 for parking. Lastly. the City prefers to sell the 4,505 s ft lot at a cost of $20,000 or $4.439 per sq ft rather than provide an easement. For co parison, the HRA purchased the Fluth lot (9,608 sq ft) on Broadway in 1997 for $50,000 or $5.20 per sq ft. Koropchak added that Mark Ruff had previously advised the members that the TIF assistance becomes one of policy: Does t e HRA consider the housing substandard? Is the land price reasonable? Does the City \ -ant redevelopment? What is a reasonable price for parking? Koropchak added that he TIF cashflQ\-v numbers for the recent bond sale included the projection of~ project' or tax increment . Mike Cyr was present to inform the j"IRA f retined construction numbers and request. He provided revised project summaries. H noted that they had also looked at reducing the size of the bui Iding as an option as wel. Cyr noted the approximate gap was the same for both buildings. Cyr also provided a su 1mary regarding shared parking including the $45,000 which was assumed to be coming rom the HRA funds already committed to parking development as part of the Amoco site project. Cyr advised that the approximate gap would be $95.000. Mr. Pat O'Donnell stated that the proposed one story building was not their first choice but was looked into due to the opposition t ey were receiving regarding their two story building project. It was stated that the one tory would only be large enough for their firm at its present size. Koropchak then provided TIF cash flow in rmation for their review. It was stated by Cyr. O'Donnell and Johnson that the parking would be deficient if both projects were to move fo!'\vard. according to the city's ordin nce. although the parking demand would be at different times of the day. It \vas again stated that there is an administrative perceived parking problem. . Koropchak advised that the developer need' to commence construction by September. 2 . . . HRA Minutes - 08/01/01 To encourage redevelopment, the HRA n eds to determine level ofTIF assistance for the building project or parking project, both rojects, or either project. If the HRA can determine the amount of TIF assistance, t is will aid the developers with their decision to proceed or not to proceed, and allows the etails within the Contracts to be determined by Legal Counsel. It may be best to direct st ff to place the parking issue on the Council agenda given the decision of Council rela ive to the Town Centre project. Cyr advised that according to the city's c mprehensive plan and counting the on-street parking, they would actually have over th required amount of parking spots and that this is strictly an interpretation issue in wheth I' to count on-street parking. Bob Murray suggested the HRA pick a Ie el of assistance and forward that on to City Council for review and possible modificat on. Darrin Lahr added that the request is for either $140,000 or $160,000. taking no ta, es for 10 years, and that this would generate no income to HRA. A MOTION WAS MADE BY DARRIN AHR AND SECONDED BY STEVE ANDREWS APPROVING THE USE OF AX INCREMENT FROM THE SMITH BUILDING PROJECT IN AN AMOUNT UP TO $114,000 FOR QUALIFYING REDEVELOPMENT COSTS AND THE rSE OF TAX INCREMENT FROM THE TIf DISTRICT 1-12 SURPLUS IN AN AMO NT UP TO $45,000 FOR PARKING DEVELOPMENT COSTS. ADDITIONA L y, THE HRA AGREES THAT THE USE OF TlfE PUBLIC PARKING LOTS ARE OT MAXIMIZED AND THAT THE PARKING STALL REQUIREMENTS W THIN THE CCD DO NOT ENCOURAGE DOWNTOWN REDEVELOPMENT, AN THEY SUPPORT INCLUDING ON- STREET PARKING AS PART OF THE P RKING STALL REQUIREMENT FORMULA; THEREFORE, THE HRA R COMMENDS THE CITY COUNCIL WAIVE THE $33.000 PARKING DEFICI -NCY FEE AND THE HRA WILL REIMBURSE THE CITY UP TO $20,000 FOR THE CITY LOT FROM TIF 1-21 SURPLUS IF NEGOTIATIONS WITH T E DEVELOPERS FAIL. THE DEVELOPER TO NEGOTIATE THE AC UISITION Of THE STORAGE GARAGE. Motion carried unanimously. 6. Consideration to extend the effective date 0 the Preliminarv Develo ment Allreement or to authorize execution of the Contract f()r P ivate Develo ment bv and between the HRA and Masters Fifth Avenue, Inc. Koropchak advised that at the HRA meetin ,Lotus submitted a list of comments relative to the draft copy of the Contract. Most of t ese were comments only and things for the developer to tie up. Koropehak advised Joh son that regarding the administration fee. it increases each time the dewloper changes t e Contract. Lotus vvas present at the June HRA meeting when the commissioners app oved the level ofTIF assistance. Typical interest rates are between 8 to 9%. Koropc ak advised the new TIF cashtlow runs indicate a reduction in tax increment from $ 24,000 to $92.000. Mark Ruffs comment .... .) . . . 78. HRA Minutes - 08/01/01 last month relative to Lotus' rcvised proft rma: Given the housing tax capacity didn't change that much. the dcveloper's taxes ill be less, the mortgage amount should decrease not increase. The Preliminary Development Agreement was executed initially on August 2, 2000, that's one year ago. Koropchak notcd th t if the developer does not have a signed purchase agreement and lease agreement, he HRA might consider the use of TIF with another developer. Koropchak did ask Brad Johnson if there 'as a signed agreement and he advised that he is still waiting for a letter from the owner f the Amoco site who. Johnson added. seems to be agreeable, regarding contamination t n the site. Contract was tinished earlier in the week. They will not sign the agreement u til they receive this letter. Johnson also added that they need to know what the estimated administration fees would be and Koropchak stated them to be estimated at least $10.00 ). Johnson stated he would like this estimate added to the developers agreement. A MOTION WAS MADE BY BRAD BA GER AND SECONDED BY BOB MURRA Y TO AUTHORIZE EXECUTI N OF THE CONTRACT FOR PRIVATE REDEVELOPMENT BETWEEN THE H AND MASTERS FIFTH AVENUE, INC., AS AMENDED. Motion carried unanimo sly. There was fmiher discussion regarding the sale of the city's lot possibly to Barry Fluth for $20.000, as part of both the Cyr and FIt th projects, although it was stated that this is not an HRA decision, but rather should be orwarded to the City Council. 7. Consideration to authorize HRA Attornev 0 draft a Contract for Private Redevelo ment between the HRA and MLC Buildinn and emodelinl!. Koropchak advised that this item is related to the two above items and may be irrelevant if items one and two are not authorized. It ppears if the level of assistance are determined and agreed upon by the develo ers. an independent Contract with Mike Cyr would guarantee the construction of the par' ing lot in a timely manner. This agreement "vould outline the joint parking agreement 'ross easements. need to acquire the storage garage and city lot. and is tied to the develo ment of the Amoco and Smith sites. I t "vas discussed that this may be done thro gh the attorneys as an addendum to the contracts. Koropchak suggested getting O' onnell and Fluth together regarding this agreement. No action by the HRA was nec ssary. ment and Construction and Re uest for onstruction. Mike Cyr approached the HRA asking for a'sistance of up to $100,000 to purchase and 4 . . . HRA Minutes - 08/01/01 demolish a blighted property in order to uild three market rate twinhomes at a sales price of $150,000 to $170.000. Koropchak stated that the HRA needs to etermine if this is an area that can be a qualifying district and if this could be a ousing district or redevelopment district, although she added that redevelopment ould not cash flow with just one home. Koropchak will check into this. Cyr stated these will be owner/occupied omes and added that there is a vacant lot next to this home but it is part of the lot on the o her side and the owner was not willing to split at this time. although he added that the 0 ner would sell both. Cyr stated the selling price was too high at this time. The members stated that this seems to be worthwhile project but Koropchak would need to verify that it qualifies. Dan Frie also a ked if there were other options available for financing. Koropchak stated number nee to be run. Bob Murray asked what other information she needed from Cyr in order to run numbers and see if this project qualifies. Koropchak stated that she needs to check n legislative changes. The members felt this process should sta with Cyr and Koropchak getting together and running numbers. Cyr stated his time fra e was 60 days before he had to act. Steve Andrews stated a possible option to create one TIF district to include the scattered housing district with a project such as wh t Cyr is proposing. Cyr added that he may be interested in working on that scattered hot sing project with this project. but it was noted that the HRA needs to wait on word regar ing the application already submitted for to the State. They advised Cyr to come back at t e September meeting. Koropchak was advised to work the numbers and provide hem to both Cyr and the HRA prior to the September meeting. Bob Murray noted th t he will not be at the September meeting. 8. a) O'Connor - July 26, Helvey - Talked wi h Attorney Peterson who stated not eager to bring to trial. was meeting with O'Connor n July 27. Now that in legal proceedings. the HRA will require more documentation about business. Helvey will call on Aug 1 if new information. Koropchak noted that the att rneys advised that it was probably not a good economic idea to go forward \vith the cond mnation, the members stood with their previous decision. b) Hans Hagen meeting - It is our goal to h ve a Contract executed with Hans by October 10. 200 L as this is the date the Preliminary Agreement expires. It was decided given the eminent domain process. the \ve wait and g out for plans and specs for the water/sewer/road replacement in December January. People thought \ve'd get better prices. A PUD would be required. Hans prefers and thinks overall costs will be lower if 5 . . . 9B. HRA Minutes - 08/01/01 the entire site can be cleaned-up and brought up to 100% compaction (pad finished site) at one time. Need to call American Tes ing or Braun for cost estimates. Will be a spring 2002 project. Approximately 1,800 sq livable space, selling price $185,000. Expected build-out time one year. c) Fire Department - Fire Chief Douglas asked if the BRA would consider reimbursing the Fire Department for beverages and p zza following the test burn. See attached invoices $192.90 and $86.26. He also m ntioned cost of straw bales but haven't received invoices. Additionally, the HRA is requ sted to reimburse Bob Warner for window pane damaged during test burn. House next t Bostic. Requested use of Reed and Bostic garage for ventilation drill. Schliefto be oved to Public Works next week. d) One year from now, the Carlson's will have vacated the house along the river. e) Once the HRA gets the Amoco, Smith, Hagen projects otlthe ground, we'll need to see what dollars are left, if any, prior to b ginning discussions with Steve Johnson. She asked the members if it was still their des re to work on Block 52 after these projects are up and running. The HRA feels that the rdinance regarding parking needs to be looked into. 9. At the July I-IRA meeting, the commissio ers were advised of the IDC's question: Why does the city use tax payer's dollars to assist a business who pays non-livable wages? Because of the long agenda and lack ofint rmation, the commissioners tabled the item and requested further research of other co munity's wage level criteria. The St. Cloud newspaper reported $ I 2.25 average per ho r without benefits. The Wright County Partnership as least $10.00 per hour wi tho t benefits. Currently. Monticello is at $9.00 per hour without benefits. Generally spea ing. the wage levels for local funding applications do exceed the local wage level criteria. Koropchak provided the wage and job survey results of 2000. Chair Frie provided the HRA information on income levels needed to qualify for mortgages. Bob Murray stated that one of the goals of he city was to increase the value of the homes in Monticello. which has been accompIishe . The members stated they had no interest in amending the wage level criteria at this time. All were in agreement. Citv Budget Undate Koropchak stated that the date to get budget request information to Rick Wolfsteller was no later than August 8. She also advised of some changes in the legislation that affect the 6 . . . H RA Minutes - 08/0 I /0 I budget as well. It was asked if there wa anything the HRA members requested to be added to the budget and to think about it Brad Barger asked about dollars for land acquisition for industrial purchases and oropchak stated the HRA could pledge dollars to this fund as well. 10. Consideration of authorizing There was discussion regarding the requ st by the Fire Department to reimburse them for refreshments, etc., and it \vas stated that t ley would prefer to have future bills pre~ authorized. A MOTION WAS MADE BY STEVE A DREWS AND SECONDED BY DARRIN LAHR TO APPROVE THE PA YMENT F THE MONTHL Y HRA BfLLS. Motion carried unanimously. Executive Director's Report. a. Quick TIF Reports - The annual r ports are due at the State Auditor's Office on August 1. A balance sheet has be n added to the report and a few other changes. Good checks and balance between Rick, L and City Auditors. Summarized version printed in the Monticello 1 imes, August 9, by law. Semi-annual 200 I pay-as-you-go ayments due August 1,2001 - For your information, copy of the checks m iled. Tax increment for July 2001 the H received per district. Raindance, Lake Tool. and Aroplax were late on pa. ment so no increment. All three are now paid in full. AropIax - Last month I reported I'd check with Aroplax relative to the late payment of the TIF Deficiency. Th 200 I deficiency was paid and Paul Schoen requested the HRA consider not re uesting the payment in 2002. I believe 2002 would be their last payment. As yo I recall, the HRA just decertified the district. When f finish the Quick TIF Reports, I will bring it back to the HRA for a decision, if no shortfall exists. MCC - Although Murray is a repres ntative on the Community Center Advisory Board, the attached is the second qu rter 200 I report as presented by Kitty to the Council on July 23. EDMA Company - SBA application submitted for approval. EDA loan approved for $30.000. No TIF. 10,000 sq. ft north of lake Tool. Production Stamping on hold. Need to check about Red Wing Foods. Good 60.000 sq ft industrial lead fro Olson General Contractors. 50/50 chance company \vill relocate from current I cation. Good kad for H- Window facility. Marketing Committee met July 26. 0 call1ecy Design for meeting relative to brochure update and costs. Decided he IDC Luncheon not meeting it's objective. Will write objective and plans for bu iness retention and expansion visits by IDC beginning October. Decided MOAA decisions long-way off. Will get update II. b. c. d. e. f. a O' h. I. J. 7 . . . HRA Minutes - 08/01/01 from Chamber on Fall Banquet d te and speaker at August IDC meeting. k On vacation August 7 through 14. 12. Committee Reports: Nothing further to dd. 13. Other Business. None 14. Adjournment A MOTION WAS MADE BY BRAD B RGER AND SECONDED BY STEVE ANDREWS TO ADJOURN THE MEETI GAT 9:35 PM. Motion carried. HRA Chair Recorder 8 , -. . . . 5. Consideration to a units of twin homes. A. Reference and background: HRA A~enda - 9/5/01 t for use ofTIF for develo. ment of 30 At the August HRA meeting, Cyr informe the commissioners of his interest to develop approximately 2.5 to 3 acres ofland in the icinity to the south of 6 Strect and Vine Street. lIis initial plan is to acquire the 2. to 3 acres which includes one parcel with a substandard structure, according to Cyr, fo construction of 30 units of twin hornes. He asked the I IRA of their interest in the conc pt and for TIF assistance in the amount of $100,000. The HRA was interested and in'ormed Cyr to work with Koropchak on preliminary TIF numbers and for qualifications to establish a 1'1 F district for a presentation at the Septelnber meeting. Using a selling price of $160,000 per unit nd assuming 90% as the estimated market value and an estilnated local tax rate of 14, .00;;); 8 units would generate approximately $100,000 NPY of tax increment assistance over 15 years. This scenario uses 10% fl.)r administration. The I IRA could use 20% ,nd pledge the additional 10% toward the gap of the scattered housing TIF project. It is 11Y suggestion that a Housing District be created iCthe lIRA is interested in providil g assistance. With abandonment of state aid, there is no longer a qual i fied housing district. For owner-occupied development at least 9SCl'l1 of the units must be occupied by inco ne qualified families. The income restrictions, 100% of median income fl.)r a family of tw or less and 1150;;) of median income for families of three or more. Median income is the greater of the statewide median or the county median. Wright County median in ome for 2001 is $74,700 and the state wide median inconle fl.)r 2000 was $57,900. Un er the example given, the district boundaries would need to include 8 units (95% is 7.6 '\flits) and at least 80% of the tax increment must be spend within the district. The pupose of a housing district is to provide affordable housing. Because the income I vels for Wright County arc on the high side, what prevents any residential developer to approach the city for TIF? Is there any unique circumstances in this project? Perhaps ac uisition and demolition of house as Inost housing developments acquire raw land. 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 TI < District. From a TIF standpoint it could work as long as the 95% criteria is met ho ever, timing may be an issue. The second round of awards Cor M IIFA funding is sch dulcd t()l' September 27 and if awarded, thereafter, will Sheri begin the process of. cquiring parcels. The scattered housing project was planned with a different build I' than Cyr but could still work. A redevelopment district just doesn't work ith only one structure on the entire property. H RA Agenda - 9/5/0 I . As a reminder to the HRA commissioners, ttached is a copy of the Tlr: application form and process. I t appears, developers approa h the lIRA fl.)r interest 0 f TI F and req uest assistance without completion of the application and having talked to their lenders or prepared a sketch plan of the proposed dev lopment. In this case, r ve yet to see a map of the proposed boundaries nor received a cOl1pleted application. Although the HRA wants to encourage development or redevelopme t, I suggest the comlnissioners remind developers to complete the preliminary ap lication f(mn prior to appearing at an HRA Ineeting. Also the concept goes to the City Council prior to determining a level of TIF assistance. In our conversation, Cyr informed me his ap is $300,000 and asked if the lIRA could sell bonds for a short term (4-year) loan to inance his upfront costs for acquisition and private infrastructure. This in place ofTIF. What is the public purpose? The purpose of an lIRA is not to be a commercial lender b t for gap financing. Bonds would he taxable bonds meaning a higher interest rate to the city and not as attractive the huyer of the bond. Attorney Buhul agrees not to issue onds. Presentation by Cyr. B, Alternative Action: . I. A motion to approve the prelimina y concept for establishment ofa Housing TIF District forwarding the concept to he Council for approval. Subject to Council approval, authorization to enter int a Preliminary Development Agreement. 2. A motion to deny approval of the reliminary concept tor use of 'fIF. 3. A motion of other. 4. A motion to tahle any action. C. Recommendation: Recommendation is alternative no. I. If( ouncil approves and the preliminary agreement is executed, Ehlers will be called to verify level ofTIf assistance. In October. the lIRA approve level of assistance subject based' proforma signed hy the developer. D, Suoportin!! D.lta: TIF estimates by Ollie, 2001 Wright COul ty median incOlne, TIF application form and process. . 2 . . . '1'1 F PROJE'TIONS CYR PRe JECT AUGUST 9,2001 Assumptions: 4 twin home (8-units). Selling Pric $160,000. EMV $144,000. Estimated 2002 Local Tax Rate 143.00%. No oriinal market or tax capacity values. $144,000 X .0ICYo class rate = $1.440 x 1.43% = $2059.20 x X units = $16,473.60 annual taxes. x 15 years of taxes = $247,000 less 10% admin = 222,399. Estimated $100,000 NPV TIF assistance. NOTE WIn-lOUT DEFINE BOUND RIES, NO ORIGINAL TAX CAPACTfY IS INCLUDI'I) IN THESE NUMBERS. By Law the HRA can spend 20% of the increment utside the Housing TIF District which includes the 10% admin. SA ~. Page 54 of 55 . 45% 420 480 541 600 649 696 744 793 420 450 541 624 696 768 50% 467 533 601 667 721 773 827 881 467 500 601 694 773 854 55% 514 587 661 734 793 851 910 969 514 550 661 763 85] 939 60% 561 640 721 801 865 928 993 1,057 561 600 721 8~'" 928 1,0 .:U County: c32 Effective 12001 Median Income $74,700 Date: (AMI): ..mmn Income Limits By Household Size +---+++ 2 3 4 5 6 7 8 30% 15,690 17,940 20,160 24,210 26,010 27,780 29,580 35% 18,305 20,930 23,520 28,245 30,345 32,410 34,5]0 40% 20,920 23,920 26,880 32,280 34,680 37,040 39,440 45% 23,535 26,910 30,240 36,3 15 39,015 41,670 44,370 50% 26,150 29,900 33,600 40,350 43,350 46,300 49,300 55% 28,765 32,890 36,960 44,385 47,685 50,930 54,230 60% 31,380 35,880 40,320 44,8 0 48,420 52,020 55,560 59,]60 ---- Maximum Gross Rents By Household Size(Pre ---- Maximum Gross Rents By Bedroom 1990) m_ 1989) un 2 3 4 5 6 7 8 0 2 3 4 5 30% 392 448 504 560 605 650 694 739 392 420 504 582 650 717 35% 457 523 588 653 706 758 810 862 457 490 588 679 758 836 . 40% 523 598 672 747 807 867 926 986 523 560 672 777 867 956 45% 588 672 756 840 907 975 1,041 1,109 588 630 756 874 975 1,0 50% 653 747 840 9~~ 1,008 1,083 1,157 1,232 653 700 840 971 1.083 1,1 .J.J 55% 719 822 924 1,027 1,109 1,192 1,273 1,355 719 770 924 1,068 1,192 1,3 60% 784 897 1,008 1,120 1,210 1,300 1,389 1,479 784 840 1,008 1,165 1,300 1,4 T AX_CREDIT _INCOME_LIMIT. RDF Minnesota Housing Finance Agency Date Run: Inco e Limits And Maximum Rents County: Effective Date: All Counties 04/06/2001 County: Effective Date: Yellow Medicine 04/06/2001 Median Income (AMI): .'+m+'__ Income Limits B Household Size mnn $47, 100 2 7 8 3 12,720 4 14,1 0 5 15,270 6 . 30% 11,310 17,520 18,660 9,900 16,380 55 ~..........~~ ~,~~,~~ __.__._____.__n__... _...._._..____ . .._____n_________ ._.._ .__ ,._____ .. -- . . HOUSING AND REDEVEL PMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO, MINNESOTA PRELIMINARY API' ICATION FOR TAX INCREMEN FINANCE APPLICANT: FIRM OR TRADE NAME: BUSINESS ADDRESS: CITY/STATE: TELEPHONE: (Bus.) FAX: (Home) E- AIL: TYPE OF BUSINESS: _ Sole Proprietorship _ Corporation ~ Partnership _ Start Up _ Expansion TYPE OF PROJECT: _ Manufacturing Office _ Housing Expansion/Relocation Warehousing ~ Other Industrial Retail Commer'cial . BRIEFLY DESCRIBE NATURE OF BUSINESS R PRODUCT LINE/SERVICE: DEVELOPMENT PLANS: TOTAL SQ. FT. OF BUILDING. BREAK DOWN BY SQ FT OF AREA SUC I AS MANUFACTURING, OFFICE. AND W AREIIOUSING AREA, OR SQ FT PER I- OUSING UNIT: ESTIMATED SQ FT COST OF CONSTRU TION EXTERIOR BUII.DING MATERIAL OUTSIDE STORAGE REQUIRED NUMBER OF ACRES ------------.-- --.---..-.--..--....- ESTIMATED LAND COST PARTICIPATING LENDER PARTIClPATINC CONTRACTOR . . -.'''., AMOUNT JOB AND WM;E LEVEL CREATION: COMPLETE ATTACHMENT . AMOUNT OF TIF REQUESTED: 5(., E ~ONOMIC DEVELOPMENT T X INCH..EMLNT FINANCING 5( 5 Walnut Street. Suite I Monticelh MN 55362 o tice of Economic Development (763) 271-3208 C ty Hall (763) 295-2711 MONTICELLO TAX INCREMENT ~ INANCE PROCESS tJigiblc T1F expcnditures: ["and aUjuisition, imta1lation ofpuhlic and ()}/-site ill/provclI/cnts, dClI/olition, relocation, parking f(/ 'iIi/iI'S, and .,'treets and sidcwalk,. Till/I': Si.x to eight \1'ceksj()(' apprm'al 1'yp<: of project: Ewnomic (for manufacturing' nd distribution) R<:developm<:nt .. __ (Tor blighted p opnty) Housing_ (affordable housing) Soil Condition R<:novation and renewal Developer: O<:script ion of project for eonstructio ,estimated project costs, nUlnber of new jobs with in two years and hourly wage. Amount of TIF requested: Land and/( I' site improvem<:nts and <:stimated costs. Financing Mdhod: Pay-as-you-go or Ip-front. . b.:ecuted I'rc- 1'1 F Agreement and $5. )00 cash ier check. TIF Plan: liRA authorizes preparation ofTIF I' an. Building and site plans submitted to hie/' Building Official. Contract: Findings for "but for" test: A proforn a. letter from lender. "But for" means that the project would not devdop soldy on private investment in th<: reasonable future. .lob creation: Number of new full-tim' jobs to be created within two years. Ilourly wage: At kast 90% of the jobs created must pay a wage of the higher of $9.00 per hour. or at least 160% of the federalminimun wage r<:quirement. Annual written report is r<:quired until termination date. If job and wage go lis are not met. the developer must repay the TIF assistanc<:. Level of1'lF assistance. Construction comm<:ncement and cOllpletion dates. Copy of purchase agr<:elnent if assist nc<: is for land acquisition. Copy of lease agreement when appro xiate. Certification of site improvements in urred and paid. Evidence of construction financing. Proof of payment of insurance premi tms. Certification of income levels. . Building Permit: Building permit issued alkr the TIF )istrict is approved by City Council and Contract for Private Redevelopment executed by the dev lopeI' and the H RA. Monticello City Hall. 505 Walnut Street. Suite 1. Monticell , MN 55362-8831. (763) 295-2711 · Fax: (763) 295-4404 Office of Public Works, 909 Golf Course Rd., Montice 10, MN 55362. (763) 295-3170. Fax: (763) 271-3272 5 . . . 6. A. Reference and back1!round: HRA A~enda - 9/5/01 sat to c1eanu the area of Front Street. At one of the previous HRA meetings, the IRA authorized going out for bids for dell1olition and cleanup of the Bostic, Schli ~f, and Reed properties. However, after a meeting with llans Ilagen, it was decided t wait until the liRA gained possession orthe O'Connor parcel. COll1pleting the cleanup. s one project appeared to save money in the long run and would provide a finished pad 'ite at a pre-determined grade level and at 100% compaction. This is be adjusted in the land price to Hagen. After the "test burn" and with the Building Department issuing light notices, the Building Department has received complaints of the remaining cone ete foundations and garages in the said area. Therefore, the lIRA has solicited RFPs. The RFP was mailed to Schluender, Gullin r, and Fyle. The RFP is due back at noon, September 4, 200 1. Work to be complete no later than September 21, 2001. The HRA needs to review the bids and aw, rd to the lowest bidder. B. Alternative Action: 1. A motion to award the bid to . the lowest bid. in the amount of 2. A motion to reject the bids and soli it new bids. 3. A motion to table any action. C. Recommendation: The statT recommends alternative no. 1. D. Supporting Data: None. Bids will be presented at meeting. . . . HRA Agenda - 9/5/01 7. ithin TI F District No. 1-22. A) 8) C) Attorney project along Walnut Stre 't - Last week. Pat CfOonnell called to infi.mn me that the group elected to take a "wait and see approach until spring" as they lost their investor or tenant. Since he last HRA meeting and prior to the call from O'DonnelL liRA Attorney Greens eig and myself met with Attorney Jerry Paulson. Barry Fluth, and Brad Joh lson to discuss the Contracts for Private Redevelopment and how to handle he Joint Parking Agreement associated with both projects and the commitment y the liRA for $45.000 per project. The City Council did approve waiving or tra1sferring city funds into the parking fund to encourage project developlnent. A ditionally, the council counter-offered with $17,500 to the Fluth offer of $15,OlO for the West Broadway parcel with the condition the access be closed to B oadway and upon development. Amoco site - With the decision by he Attorneys. Fluth continues with redevelopment of the Amoco site. The Contract with the amendments as discussed at the August meeting w II be ready for execution on Wednesday. received a copy of the executed Pu chase Agreement between Fluth and Bjorklund. The Contract is subjec to lender commitment and execution of a Parking Agreement between Fluth. Paulsen, (Iamond. and Koppy noting cross casements. maintenance. etc. The BRA agreed to pay up to $45.000 for ofT-site parking development associated w th the Amoco site. Fluth expects to have architect drawings of the building, the Friday following the liRA meeting which will be reviewed by LJA 1'. Fluth h s indicated he is ready to sign the C\mtract. If noL the Preliminary Development greement was null and void on August 2. 2001. Front Street - The court hearing da e in August was re-scheduled to September 19, 2001 for the eminent domain ofth O'Connor parcel. It is my understanding, the BRA will gain possession of the p operty on October 2,200 I; however, the acquisition price may not be deten lined. The next HRA meeting is October 3 and since there has been two conllictin r motions relative to demolition or putting the house out for bids to sale and reme ve, this will again be on the l-IRA agenda in October. O'Connor stopped by n y office, to let me know there were two houses along West River Street which he hought would meet his needs. He was inl(Jrmed to contact Ken Helvey a it appears he misunderstands and thinks the HRA is going to acquire a house f I' him. lie also noted the date of October coming up and interest to acquire is existing house and find another lot. Marketing Study - Steve Johnson as an individual named Jim McComb who has completed marketing studies for c mmunities. Steve made a presentation to the Chamber and asked of interest an funding. It is my understanding the study D) HRA Agenda - 9/5/01 . includes retail, commercial, industri L and housing data. In a joint meeting or the Planning Commission and Council, the study will he discussed as part of the Comprehensive Plan discussion. Pr ce: $38,000. . . 2 . . . HRA Agenda - 9/5/01 Consideration of authorizin a ment 0 monthl HRA bills. Recormnend authorizing payment of bills. 8. Kennedy & Grav n, Chartered 200 South Si h Street Suite 4 0 Minneapolis, N 55402 . August 14, 2001 Statement N . 38907 City of Monticello Accounts Payable 505 Walnut Street, Suite 1 Monticello, MN 55362 J.. ~ "'?:>.. 4 \.. ~ 0 \ Through July 31, 2001 MN190-00041 Redevelopment - General MN190-00088 Acquisition of 8 Locust Street/Bostic ? \ MN190-00089 Acquisition of 218 Front Street/O'Connor MN190-00091 TIF 1-28 (Economic Development) '3..'fI.\ Expenses ? \ --:, ~ u. \., s ~ ~ . "30 0) l..4 '0 . I declare, under penalty of law, that this account, claim or demand is just and correct and that no part of it has been paid. . ~ 0'; 0 . L\C..~<il'3.. '"3oYo \ ,? '4 ~ ~ 3'~. ~ Cl 'i 0 "J,.. \:, . Llt., s ';) g>. ~o '10 Total Current Billing: . I'(\~ \<.10 PAY'? ~ code:~ \o\t\a\ ~ 157.50 441.00 1,201.50 27.00 748.03 2,575.03 . Kennedy & Grav n, Chartered 200 South Six h Street Suite 4 0 Minneapolis, N 55402 August14,2001 Invoice # 38907 City of Monticello Accounts Payable 505 Walnut Street, Suite 1 Monticello, MN 55362 MN190-00041 Redevelopment - General Through July 31, 2001 For All Legal Services As Follows: Hours Amount 7/3/2001 SJB Conference call with Wolfst ther, Koropchek and Ruff 0.50 77.50 regarding TIF grant; bond 0 tions. 7/17/2001 SJB Telephone conference with Koropchek regarding TIF tax 0.20 31.00 law remedies. 7/17/2001 JQS Draft letter to Ollie re 3 Wal ut Street; update our county 0.20 18.00 . recorder log-in system 7/27/2001 SJB Telephone conference with Koropchek regarding 0.20 31.00 TIF/parking questions. To al Services: $ 157.50 To al Services and Disbursements: $ 157.50 . . . . Page: 2 Kennedy & Grav n, Chartered 200 South Si h Street Suite 4 0 Minneapolis, N 55402 City of Monticello July 31, 2001 MN190-00088 Acquisition of 8 Locust Street/Bostic Through July 31,2001 For All Legal Services As Follows: 7/9/2001 NKE Prepared final documents fi r court hearing. Review with Bonnie Wilkins. Phone call 0 court administrator. 7/9/2001 CBR Check request; draft letter For All Disbursements As Follows: Photocopies Postage Trust Account 7/9/2001 7/9/2001 7/9/2001 7/9/2001 7/9/2001 7/9/2001 7/12/2001 "'VOl 0* "'VOl 0* Reverse Check No. 5860 Reverse Check No. 5861 al Services : T al Disbursements: B inning Balance: Wire Transfer to Vernes A. Bo tic Acct. En ing Balance: Hours 4.50 0.40 $ 2,000.00 -36.46 -463.54 36.46 463.54 -36.46 -463.54 -1,500.00 u.uu Amount 405.00 36.00 441.00 $ 2.80 1.36 4.16 Page: Kennedy & Grav n, Chartered 200 South Si h Street Suite 4 0 Minneapolis, MN 55402 . City of Monticello July 31,2001 . . To al Services and Disbursements: $ 445.16 . Page: 4 Kennedy & Grav n, Chartered 200 South Si h Street Suite 4 0 Minneapolis, N 55402 City of Monticello July 31, 2001 MN190-00089 Acquisition of 218 Front Street/O'Connor Through July 31, 2001 For All Legal Services As Follows: Hours Amount 7/2/2001 RJL Review, adjust and finalize pleadings and letters; 1.20 198.00 intraoffice conference re filii g and quick take notice 7/2/2001 CBR Prepare service of Notice nd filing of documents; revise 2.50 225.00 documents 7/3/2001 RJL Phone call with Wright County Recorder; intraoffice 0.10 16.50 conference re same 7/5/2001 RJL Phone call with District Co rt Administrator (2); phone call 0.50 82.50 . with K. Helvey; intraoffice onference re hearing notice 7/10/2001 RJL Review and finalize notice 0.20 33.00 7/10/2001 CBR Intraoffice conference; pho e call to title company re 1.00 90.00 affidavit of survivorship; int aoffice conference re condemnation 7/11/2001 RJL Review draft affidavit; intra ffice conference re same 0.20 33.00 7/11/2001 CBR Draft affidavit of survivorsh p re Christenson; review 0.50 45.00 documents from title comp ny 7/12/2001 RJL Review correspondence 0.10 16.50 7/13/2001 RJL Phone calls with S. Grey, rocess server (2) and K. 0.40 66.00 Helvey (2); review fax from Helvey 7/16/2001 RJL Phone call with Helvey re r location; phone call with S. 0.20 33.00 Grey re service 7/16/2001 CBR Draft letter 0.30 27.00 7/18/2001 RJL Phone calls with Korapcha and GMAC Mortgage 0.10 16.50 7/19/2001 RJL Phone call with process se: er; review letter from GMAC 0.20 33.00 7/20/2001 RJL Phone call with Koropchak 0.10 16.50 7/25/2001 JQS procure check to pay filing ee; phone call with County 0.25 22.50 Recorder's Office; draft lett r to County Recorder . 7/26/2001 RJL Review service; write lette to remaining parties 0.30 49.50 7/31/2001 RJL Review file; intraoffice con rence re same; fax to 1.20 198.00 . Page: Kennedy & Grav n, Chartered 200 South Si h Street Suite 4 0 Minneapolis, M 55402 City of Monticello July 31, 2001 Koropchak; dictate letter to . Peterson To al Services: For All Disbursements As Follows: 7/2/2001 . 7/2/2001 7/3/2001 7/25/2001 7/26/2001 Photocopies Postage Fax Wright County District Cou Administrator - Filing Fee to File Condemnation Petitio ($132.00 Minus the $10.00 Library Fee) Wright County Recorder - i1ing Fee to File Notice of Lis Pendens Metro Legal Services - Co rt Filing Service Wright County Recorder - ile Document Metro Legal Services - Leg I Process Service; Nationally Arrange Service; Skip Tra e Service To I Disbursements: To I Services and Disbursements: $ . $ 1,201.50 56.00 25.87 2.50 122.00 19.50 83.00 19.50 415.50 $ 743.87 1,945.37 . Page: 6 Kennedy & Grav n, Chartered 200 South Si h Street Suite 4 0 Minneapolis, N 55402 City of Monticello July 31, 2001 MN190-00091 TIF 1-28 (Economic Development) Through July 31, 2001 For All Legal Services As Follows: 7/3/2001 DJG Revise TIF contract; draft c ver letter regarding same. To al Services: Hours 0.20 $ Amount 27.00 27.00 To al Services and Disbursements: $ 27.00 . . Acquisition .. Conworth, Inc. 4725 Excelsior Boulevard Suite #200 Minneapolis, MN 55416 August 2, 2001 ?\? \.\~ ~~"'b" ?\~9 Ollie Koropchak Executive Director Monticello Housing & Redevelopment Authority Monticello City Hall 505 Walnut St., Suite 1 Monticello, MN 55326-8831 JUL Y SERVICES - MONTICELLO PROJECT . O'Connor INVOICE Phone (952) 929-0044 Fax (952) 929-0568 Toll Free 1-877-805-1575 Talk three times with regarding issues and status. Fax information to Review comparables. Talk with O'Connor's attorney regarding appraisals. Talk with HRA attorn y regarding issues. Fax memo to BRA an claimant's attorney. Write and fax memo t BRA regarding status. Prepare Notices ofRe ocation Eligibility and talk with HRA regarding same. TOTAL HOURS E ENDED AT $70.00 PER HOD . 9.25 $647.50 o ~~~D~~ n AUG 7 2001 U ACQUISITION AND RELOCATION . MC100-01 Monticello HRA 505 Walnut Ave ue, Suite 1 Monticello, MN 55362 August 10 2001 GENERAL Professional Services -e-oc:\ 7/11/01 MTR MTR MTR -7/15/01 MTR 7/23/01 MTR 7/25/01 MTR 7/26/01 MTR MTR Invoice # 18637 \ ~ \ 9~ ~o . u. ')\"h' "'bo\ ."'l::.\~q Meeting and HRA meeting ..... ")., :, . '" v Run numbers for scattered site housin9..- -.......a u , ~ g -:a.\ q n Run numbers for Walnut housing ':;l \ ~.. ~ ~ ... ~ ~. - J .. Amortization - Recycling tech loan '). '5 0 . "'-t..t 'So e \. ~,~ C\ Meeting with Hans Hagen "'). \ ~. \.4. \... <l$. ~ ~ . ~ I G'1IIl Work on payg and loans update \"~,, "'1. \ "b. ~\ c.",,=- b' . "10 t Cf If Rerun Amoco .,. 'I~ \. -;:I.. "'). Finish runs/PAYG updates ___ \\ (1.. t=ot ~ ~\~.l.(t.~o\. ~\C\q Total Due This Month: Status of Account: . Current $1,187.50 30 Days $0.00 60 D.EY.s $0.00 90 Da s $0.00 120+ Days $0.00 Hours Amount 3.00 375.00 0.50 62.50 0.50 62.50 1.00 125.00 1.00 125.00 1.25 156.25 0.50 62.50 1.75 218.75 9.50 $1,187.50 Total $1,187.5"0 PLEASE KEEP WHITE COPY FOR YOUR FILE A 0 REMIT PINK COpy WITH PA YMENT TO: . . EHLE S & ASSOCIATE INC 3060 Centre P inte Drive Roseville, MN 5 113-1105 651.697. 500 Invoice SCHLUENDER CONSTRUCTION, INC. 3331 90TH SlREET N.E.. MONTICELLO. MN 55362 PH (163) 295-5784. FAX (763) 29!-5544 OA r f. INVOICE # . 8/1612001 7098 BILL TO: CITY OF MONTICELLO ATTN: ACCOUNTS PAYABLE 505 WALNUT STREET, SUITE 1 MONTICEllO, MN 55362 AMOUNT , '" -, '!W"'.I"'Uiif!l~~"I;AP''''ld'' ~till}J.t""~'."ii"i'""''' ," ',iii;!~'~i>m!~~,:,;~:;'~:.~~~,Jb~:'I4!'_'~~It~~\~:;m~~!~ ",,"v."r,gF.t~;~~~tr "'"-'~ . ",7 ," :, - ~ : ~ . : .~:. ~: '!;';~:~ :":. .:, .~,ji,~~'~..~.'':.~',,:: :~::~~ ,.I'!'I'.jI-'....t..~ 'I: t.:.,!"...., PllH:t'lIIo;.~ 'l'''''oI':''l.ifII''~ "'''''lIIj~~-':1I.....i;I:P,~~. ',1:'. 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" ," '.1.. ,;'. ~ ~.> :~>~'~.~'.'~~I ~I~~~ q'~,~~,:;!~~ ';~.~i,:~,a~:H;'~~~I~'It~,n~,~.;,~t~~~:;'~~,~,~~~'~r;: ~~~'~;~~{';I:;':';'~ ~,' ~:~:." I.",. .:,: " ' : .. ..~' > I ,'. _':(~' :1 I ~.~"I: '( ~ -11 :t~:!~.:~~~+~,n~~tl~;l1~~~~.,~~~,;,~l;~.~~~> d'c.~~'~ t:~,- ~.; .. ftd'..W; I '-: ,~. 1 I ,_.__.,."""'_.__ _.,..._ ..,"___________n""."____,_ TOTAL $440.00 1 053 (S/01) cd W~6P:L0 100c LC '5n~ PPSSS6c[ L: 'ON X~~ NOI1Jn~lSN0J ~3aN3nlHJS: WO~~ . . . H RA Agenda - 9/5/0 I 9. F:xecutive Director's Report. a) Integrated Recycling Technologies,. Inc. - GMEF No. 018 in the amount of $72,500 closed (disbursed) on June 29, 2001. Building construction underway along Fallon A venue. b) I,:J)MA Company - Approved GM F No. 019 in the ml10unt of$30,000 closed on August 30. 2001. Building and sit plans at city f()r review. c) WII IA Company - Plans have been submitted to the city f()l' a 16,000 sq ft addition to their existing 10,000 sq ft building. d) II-Window - Two leads f()r this bui ding. e) Fay-Mar Building - Production Sta llping took a second look. No room to expand. I believe Fay-Mar is leasir g 2,500 sq ft in Big Lake. I've been trying to reach Ron Musich to get the latest n Fay Mar. As far as the HRA Contract if indeed no production or jobs remail. the Contract is in default. I will write a letter much the same as the H- Win ow and he will not receive the last payg payment of near $10,000. I may a'k for an account of the jobs or payroll between January 1.2001 and August 1,200 . to see if the paya payment of August I needs to be returned. /) Production Stamping taking a wait and see approach. g) Red Wing Foods - May construct 26,700 sq n building. Undecided. h) DMRF No. 112 - Authorized payn ent to Mr. Thickpenny in the amount of $6,900 for facade grant. I) Mayor Belsaas and myself met witl Charlie Pfeffer on August 23 and toured development areas in Maple Grcwl:: and Rogers. j) The EDA is working with the prop'rty owners of Block 35 for development of a concept acceptable to the owners a d puhlic works to enhance the rear area of the private lots. IssLle include parking poor drainage li'om roof<; and plowing, and trash areas. The EDA is willing to commit a significant amount of DMRF dollars to complete the improvements. k) A plan is being drafted to re-instat the business retention and expansion visits. This though the I DC. I) Will hegin soon to qualify the par 'els to remain in the Downtown TIF District per the flJur-year knock down rule and submit to County Auditor. m) The second round of MHFA appli ations will be awarded around the 2Th of September. Monticello's scattere housing application is among them. n) St. Ilemy's - A new developer is i terested in redevelopment of the previous church site. I Ie was meeting with architect to perhaps renovate the church into 20 apartments and the two other b lilding into 6 apartments in each building. These would be rental property. . t this point. the parking lot across the street would serve as parking tl)r the apa tments. To use TIF. a Renovation or llousing District may qualify. The develop~r would need to petition the County for a reduction of the existing market v'lue in order to generate sufficient tax . . . HRA Agenda - 9/5/01 0) incrclncnt. Perhaps a Phase II proje 't would redevelop the other remaining property. I--Ie also owns 2 1960's I' ntal 4-plex and inquired to renovation programs. MHf ^ has programs w ich a tied to affordable rental. Relocation of warehouse business -I What is the HRA feeling about relocating a warehouse/outdoor storage busines to the industrial park and provide TIF assistance. An economic district w th no new job creation. I I RA would hold puhlie hearing on retention of jobs. Contract includes retention ofjohs and wage levels and letter stating they'd leav Monticello. Jeff & I went to a Sensible Land LJ, e 111eeting August 29. Program was TIF. No new int()nl1ation. Did hear one go d suggestions: I-lave developer sign pro!'(mna. City Budget underway - Attached i projections t'(H taxes payahle 2002 to Council from Rick using estimated local tax rates. Copy from the Mpls Star - good thi;lgS about '1'1 F - Monticello mentioned. Copy of the August Council minut s relative to parking stall deficiency waiving and city lot sale. p) q) r) s) 2 . N '**= CfJ Z 0 I-- U 0 Q) CfJ iG 0::: .~ => ..... '" -:l W ....J ..: ....J 0. ~ <( C N .s:: 0 l.) 0 ... 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But those articles are not the whole story on TIP, which actu~y has performed very well as a tool for creating and retaining jobs in Minnesota. The fact is, TIP is one of the few economic development tools that Minnesota haS. And, by far, it is the most important one. Moreover, TIP has worked in Minnesota as the Legisla- ture intended it to work,and it has been refined over the years by amendments that have made it an even better tool' for building and main- taining the state's economy. The basic idea behind TIF is to use future real estate taxes to finance current develop- ment, which in, turn, creates and retains jobs. During the past decade, when economic development officials from other states ar- rived in Minnesota to woo businesses to move to lower- tax, warmer climates, or when global competition made it at- tractive. for. businesses to move jobs out of Minnesota, our state had few arrows in its quiver. We couldn't lower taxes overnight. We couldn't change the weather.' We couldn't .....;.... and didn't want i to - offer cheap labor, , Instead, Hmany . municipal~ ities took advantage of the state law authorizing TIFs for .development subsidies need- ed to retain or create jobs. Philosophically, we don't see anything wrong with in- vesting CdmmUlli}, resources' in Job creatIoh. ", ogress al~ ways requiresgi and, take, and in order to attract or re- tain jobs that help keep a town viable, a community may have to give up some- . -......"..r,.,.. fl'Y" rr assistance package that in- cluded the city's TIFinvest- ment of about $360,000 for iIP frastructure and site im- provements. Under the nine-year ar- rangement, the company will pay real estate taxes on only the land and 10 percent of the new building. In return for subsidies, the company has One of many exampl s in built a facility worth $2.5 mil- which a Minnesota munic pal- lion, not countingequlpment, ity used TIF to build i job and committed to creating 89 base was the 1995 TIF in est- new jobs in Monticello. ment of $1.9 million' the In Lakeville, the Fairfield city of Bloomington,. to' 0 tain Business Campus, near, Inter- a $150 million investme t, by state 35 and County Road 70, Seagate Technology. ,The roj~", is one example of the success- ed," ii'wafer-Cabticating"dllt"'''''ful' use of TIF td enhance the' ty, 'created,' 350 new obs, job base. The campus was de- which paid, on average, . ore veloped in 1996 with the issu- than $13 an hour. Had they ance of $3.765 million of tax- not provided the financi in- increment bonds to finance centive, city officials hav said the infrastructure improve- that pr9J~,','ct:Would,~n9,,',t,.have ",m" entsand, Pl'Q,',ly}de l,an"d," wr, ite"'i been tfilllt, and ",thda~' job.t~~down$r,j.....i\\,; , f' \l . : would haVe moved overs as." \,'), .'Today, city officials say, the Another example '::'0 '; Job ': campus has a combined prop-' creation' with TIF is. th re- erty market value of more cendy opened Twiri ti 'Die than $12 million and provides Castings Co. facility in onti- employment opportunities for cello, built with an eco omic about 300 people in office, re- thing. In the case of TIF, that something is a portion of real estate taxes. Most com uni- ties that have used TIF ave used it judiciously and are- fully weighed the costs, ,and benefits associated with it How nF bas worked Star Tribune Illustration by Jim Freitaf' search, technology and manu facturing positions. Companies located in th, Fairfield complex inc1udl Hearth Technologies, the par ent company of fireplacl manufacturer Heat-N-Glo which constructed a 75,000 square-foot corporate head quarters and research-and-de velopment facility; Technica Methods Inc., a pattern mak ing and prototype manufac turer of aerospace and com mercial applications, and Ne\' Morning Windows, a manu facturer of custom-designcl windows. Accountability statewide, economic devel opment' TIFs have served th public good; Amendments f, the original legislation hav closed loopholes and institut ed the nation's strictest sys , tern of oversight. ' For example" municipa ities must report progress II ward meeting the job en ation, wage and other goa ,that provide the justificatio ~R~ . . . Council Minutes - 8/13/01 BRUCE TIIIELEN MOVED THAT THE CI Y COUNCIL STRONGL Y SUPPORTS THE CONCEPT OF A HIKE TRAIL FROM CLE RWATER TO MONTICELLO. CLINT HERBST SECONDED THE MOTION. BRIAN STUMPF STATED HIS SUPPORT OF THE PLAN AS LONG AS THE WRIGHT COUNTY SNOW OBILE GROUP WAS IN VOL VED AND IS IN AGREEMENT WITH THE CONCEPT. MO ION CARRIED UNANIMOUSLY. Don I-lemming noted that there will be a meeti 19 on the trail on Thursday. September 20,2001 at 7 p.m. at the Clearwater Legion. Bruce Thiele 1 and Brian Stumpf will try to attend. 11. Pulled from the a2:enda. 12. Consideration of urantinu an increase to th individual ension for Volunteer Firefi ~hter Relief Association members. 13. 13A. Brian Stumpf stated he is abstaining from voti g on this item as he is a vested member of the relief association. Rick Wolfsteller briefly revie\.ve the agenda item noting that unless interest income earnings fell below 30il) the pension increase w uld not require a City contribution. CLINT HERBST MOVED TO GRANT AN I CREASE TO THE INDIVIDUAL PENSION FOR VOLUNTEER FIREFIGHTER RELIEF ASSOCIATION MEMBERS IN THE AMOUNT OF $2.175 PER YEAR. ROGER CARLSON SECONDED THE MOTION. MOTION CARRJED WITH BRIAN STUMPF ABSTAI ING. Consideration to a rove the recommendat on of the HRA to waive the arkinu defieienc fee associated with the redeveIo ment of th northerlv ortion of Block 36. Jeff O'Neill provided background information on the parking requirements. He noted that with the 60% rule if there is complete joint parking in t 1e area. you would only need to supply 60% of the required stalls. Using the 60% rule in this are would still leave a deficiency of 23 stalls. The Planning Commission felt that there was enou 'h overflow parking and municipal parking to allow the parking deficiency to be handled without c eating a huge hardship. BRUCE THIELEN MOVED TO APPROVE AIVING DEVELOPER PAYMENT OF TIlE $33.350 P ARKING STALL DEFICIENCY A 'SOCIA TED WITH THE REDEVELOPMENT OF THE NORTHERLY PORTION OF BLOCK:6 AND TRANSFER THE SAME AMOUNT FROM GENERAL FUND TO 'rI-lE PARKIN DEVELOPMENT FUND ACCORDINGLY. ROGER CARLSON SECONDED THE MOT ON. MOTION CARRIED UNANIMOUSLY. Consideration of offer to urchase city own d land in Block 36. The City owns a strip ofIand east of the Kopy building (the former senior citizens building) and has recently received an of Tel' to purchase the roperty for $15.000. In discussing whether or not to sell the land. the Council discussed the prop sed developments for this area and whether it 7 qs f1- Council Minutes - 8/13/01 . would be more conducive for development if the City retained the ownership orthe land or ifit was held by private parties. Clint Herbst thought allowing an access at this site to the parking lot was not a good idea. Roger Belsaas didn't see that the City would have any particular interest in selling this until there was some plan for the overall area. Mike Cyr who is proposing a development for the area felt that if the land was owned privately it might facilitate the development of the block. Bruce Thielen felt that if selling the propel1y would move development along, the City should sell the parcel. BRUCE THIELEN MOVED TO MAKE A COUNTER OFFER TO SELL THE PROPERTY AT $] 7,500 WITII THE CONTINGENCY TI-IA T THE PARCEL WOULD NO LONGER BE USED AS AN ACCESS TO BROADWAY AND THE SALE OF THE LAND WOULD BE TIED TO DEVELOPMENT OF THE SITE TAKING PLACE. ROGER CARLSON SECONDED THE MOTION. MOTION CARRIED UNANIMOUSL Y. 14. Consideration of accenting bids and awarding contract for ZOOt Sealcoating Proiect. Included in consent agenda. Res. No. ZOOt-57 15. Consideration of establish in!! date for bud!!et workshon. CUNT HERBST MOVED TO SET A BUDGET WORKSHOP MEETING FOR AUGUST 27, . 2001 AT 5:30 P.M. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED . LJNANfMOUSL Y. t6. Consideration of bids for emer!!encv !!enerator for Chestnut Street lift station and consideration of award of contract for delivery. Included in consent agenda. 17. Consideration of bike nark nreliminary desh;m lavout and cost estimates. Community Center Director, Kitty Baltos. presented information on a preliminary bike park design. The facility \\;as designed and built by TrueRide and is being displayed at the State Fair. TrueRide would sell the ramps to the City for $45.123. Other costs to get the bike park constructed would include the concrete work. lighting, fencing and site preparation. The total estimated cost including the ramps is $82.873. Bruce Thielen asked if there had been any recent contact with the individuals who had originally requested the City consider a bike park. Kitty Baltos stated that she had just recently gotten the price information and prior 10 that she had nothing in the way of information to submit to the group. Kitty Baltos also brought up the additional insurance expense the City would incur if they constructed the bike park, which was estimated at $7,800 in additional insurance premiums. Bruce Thielen pointed out that this would be only facility like this in the area, as most of the other bike parks are located in the metro area. . so it should draw people from quite an area. The Council discussed storage of the ramps and 8 2 . . . Council Minutes - 8/13/0 I would be more conducive for development if he City retained the O\vnership of the land or if it was held by private parties. Clint Herbst thought allowing an access at this site to the parking lot was not a good idea. Roger Belsaas didn't se that the City would have any particular interest in selling this until there was some plan for the overall area. Mike Cyr who is proposing a development f()r the area felt that if the land \\as ovvned privately it might facilitate the development of the block. Bruce Thielen felt hat if selling the property would move development along. the City should sell the parcel. BRUCE THIELEN MOVED TO MAKE A C UNTER OFFER TO SELL THE PROPERTY AT $ 17.500 WITH THE CONT[NGENCY THA THE PARCEL WOULD NO LONGER BE USED AS AN ACCESS TO BROADWAY AND T E SALE OF THE LAND WOULD BE TIED TO DEVELOPMENT OF THE SrTE TAKING P ACE. ROGER CARLSON SECONDED THE MOTION. MOTION CARRIED UNANIMO SLY. 14. Consideration of acce tinu bids and awardi u contract for 2001 Sealcoatin 16. 17. Included in consent agenda. Res. No. 2001-5 15. Consideration of establishinu date for budu t worksho CLINT HERBST MOVED TO SET A BUDG T WORKSHOP MEETING FOR AUGUST 27, 2001 AT 5:30 P.M. BRIAN STUMPF SECO OED THE MOTION. MOTION CARRIED UNANIMOUSL Y. Consideration of bids for emeruencv uenera or for Chestnut Street lift station and consideration of award of contract for deliv Included in consent agenda. reliminarv desi n lavout and cost estimates. Community Center Director. Kitty Baltos. pres nted information on a preliminary bike park design. The facility was designed and built by rueRide and is being displayed at the State Fair. TrueRide would sell the ramps to the City for $ 5,123. Other costs to get the bike park constructed would include the concrete work, Ii >hting, fencing and site preparation. The total estimated cost including the ramps is $82.873. Bruce Thielen asked if there had been any recent contact with the individuals who had originally requested the City consider a bike park. Kitty Baltos stated that she had just recently gotten the price information and prior to that she had nothing in the way of information to submit to t 1e group. Kitty Baltos also brought up the additional insurance expense the City would in ur if they constructed the bike park, which was estimated at $7.800 in additional insurance pre iums. Bruce Thielen pointed out that this would be only facility like this in the area. as most of t 1e other bike parks are located in the metro area, so it should draw people from quite an area. Th Council discussed storage of the ramps and 8 2 . . . Council Minutes - 8/13/01 would be more conducive for development if he City retained the ownership of the land or if it was held by private parties. Clint Herbst thou 1ht allowing an access at this site to the parking lot was not a good idea. Roger Belsaas didn't se that the City \vould have any particular interest in selling this until there was some plan for the 0 "erall area. Mike Cyr who is proposing a development for the area felt that if the land \\as owned privately it might facilitate the development of the block. Bruce Thielen felt hat if selling the property would move development along. the City should sell the parcel. BRUCE THIELEN MOVED TO MAKE A C UNTER OFFER TO SELL THE PROPERTY AT $17,500 WITH THE CONTINGENCY THA THE PARCEL WOULD NO LONGER BE USED AS AN ACCESS TO BROADWAY AND T E SALE OF THE LAND WOULD BE TIED TO DEVELOPMENT OF THE SITE TAKING P ACE. ROGER CARLSON SECONDED THE MOTION. MOTION CARRIED UNANIMO SLY. 14. Consideration of acce tinu bids and awardi u contract for 2001 Sealcoatinu Pro 'ecl. 17. Included in consent agenda. Res. No. 2001-5 15. CLINT HERBST MOVED TO SET A BUDG T WORKSHOP MEETING FOR AUGUST 27. 2001 AT 5:30 P.M. BRIAN STUMPF SECO DED THE MOTION. MOTION CARRIED UNANIMOUSL Y. 16. Consideration of bids for emeruencv oenera or for Chestnut Street lift station and consideration of award of contract for deli" Included in consent agenda. reliminarv desi n lavout and cost estimates. Community Center Director. Kitty Baltos, pres nted information on a preliminary bike park design. The facility was designed and built by rueRide and is being displayed at the State Fair. TrueRide would sell the ramps to the City for $ 5.123. Other costs to get the bike park constructed would include the concrete work. lighting. fencing and site preparation. The total estimated cost including the ramps is $82.873. Bruce Thielen asked if there had been any recent contact with the individuals who had originally requested the City consider a bike park. Kitty Baltos stated that she had just recently gotten t e price information and prior to that she had nothing in the way of information to submit to the group. Kitty Baltos also brought up the additional insurance expense the City would in ur if they constructed the bike park, which was estimated at $7.800 in additional insurance pre iums. Bruce Thielen pointed out that this would be only facility like this in the area. as most oft e other bike parks are located in the metro area. so it should draw people from quite an area. The Council discussed storage of the ramps and 8 QS ~