HRA Agenda 08-01-2001
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AGEN A
MON'fICELLO HOUSING AND R DEVELOPMENT AUTHORITY
Wednesday, August ,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 Liaison:
Brian Stumpf.
Staff: Rick Wolfsteller, Ollie Koropchak, and Lo i Kraemer.
(Tuests:
Brad Johnson, Lotus Realty Services, Inc.
Barry Fluth, Masters Fifth Avenue, nc.
Pat O'Donnell, Smith & Associates
Mike Cyr, MLC Building and Rem deling
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2.
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5.
Call to Order.
Consideration to approve the July 11,2001 and July 23, 2001 I-IRA minutes.
Consideration of adding or removing items from the agenda.
Consent Agenda.
Consideration to authorize HRA Attorney t draft a Contract for Private Redevelopment
Agreement between the HRA and Smith & Associates. (Pat O'Donnell).
6. Consideration to extend the effective date 0 'the Preliminary Development Agreement or
to authorize execution of the Contract for P ivate Development by and between the HRA
and Masters Fifth Avenue, Inc.
7. Consideration to authorize HRA Attorney t ) draft a Contract fCH Private Redevelopment
between the HRA and MLC Building and I emodcling.
8. Consideration of an update on projects within 'I'll" District No. 1-22.
9. Tabled - Consideration to discuss amendin the wage level criteria within the Business
Subsidy Criteria of the HRA and calling 1'0 a public hearing.
10. Consideration of authorizing payment of m nthly HRA bills.
11. Consideration of Executi ve Director's Rep( r1.
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12.
Committee Reports: MCC - Murray
Marketing - ["ahr
Mer - Andrews
13. Other Business.
14. Adjournment.
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MINUTES - SPE IAL MEETING
MONTICELLO HOUSING AND R_DEVELOPMENT AUTHORITY
Monday, July 23, 001 - 6:30 p.m.
505 Walnut Street - CADEMY ROOM
Commissioners Present:
Chair Dan Frie, Ste e Andrews, and Darrin Lahr.
Commissioners Absent:
Vice Chair Brad Ba gel' and Bob Murray.
Council Liaison Absent:
Brian Stumpf.
Staff Present: Ollie Koropchak.
Guest: Mark Ruff. Ehlers & Associates
1. Call to Order.
Chair Frie called the special meeting ofth HRA to order at 6:30 p.m.
2.
Consideration to ado t a resolution led i tax increment from TIF District No. 1-22 for
a ment of $2 150.000 Taxable Tern oral' G.O. Tax Increment Bonds.
Financial Consultant Mark Ruff noted the esolution submitted was drafted following the
direction of the BRA on July] 1, 2001, to ecommend the City Council consider
awarding Taxable Temporary G.O. Tax In rement Bonds in the amount of $2 million net
proceeds. The reasons for the recommend tion were: One, it extends the life of the 5-
year rule for the Downtown TIF District b two years or until August 2, 2004 (three years
from date of bond sale) allowing time to c mplete projects in the pipeline and future
redevelopment projects. Secondly, it provi es protection for the existing internal loans.
And lastly. it provides the option to apply r a grant if a shortfall would occur although
no anticipated.
The resolution authorizes the execution of Pledge Agreement with the City of
Monticello relating to $2,150,000 Taxable eneral Obligation Temporary Tax Increment
Bonds. Series 2001. Ruff pointed ~ut an a ended resolution and agreement will include
the addition to pledge the tax increment fro TIF District 1-23 (Midwest Graphics). The
submitted resolution/agreement only pledg s tax increment from Downtown TIF District
No. 1-22. The projected cash-flow for deb retirement assumes additional tax increment
from new projects.
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HRA Minutes - 7/23/01
Steve Andrews made a motion to adopt th resolution authorizing execution of a Tax
Increment Pledge Agreement with the City of Monticello relating to $2,150,000 Taxable
General Obligation Temporary Tax Incre ent Bonds, Series 2001 as amended. Darrin
Lahr seconded the motion and with no furt er discussion, the motion passed
unanimously. The amendment includes t increment from TIF District Nos. 1-22 and
1-23.
3.
Other Business.
None.
4. Adjournment.
The HRA special meeting adjourned at 6:4 p.m.
HRA Chair
Ollie Koropchak, Recorder
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5.
HRA Agenda - 8/1/01
Consideration to authorize HRA Attorn to draft a Contract for Private
Redevelo ment between the HRA and S ith & Associates Pat O'Donnell .
A. Reference and Back!!round:
At the July BRA meeting, Mike Cyr, prop sed builder for the redevelopment projeet of
the Smith legal firm, made a concept and fnancial presentation to the lIRA. The lIRA
approved the preliminary concept tl1f Proje t I (o1lice building) and Project II (joint
parking). No level ofTIF assistance was d fined and it was suggested for the developer
refine the numbers. The parking requirem nt issues were referred to the planning staff.
Additionally, Cyr submitted a copy of lette s of intent for shared parking and option to
purchase storage building. The cash flows elow reflect the new class rates.
Summary of Mr. Cyr financial numbers of uly ] ] :
PROJECT 1. buildin
Ius basement
Construction Costs Eli rib Ie TIF Ex ens s
$] .329,000 $449,000
PROJECT Il parking
$138,000
Revised
$138,000
TIF Requested
TIF Cashflows
$328,000
$124,000NPY
$140,000
$127,200
None
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As this project is related with the Amoeo p oject for parking, here is a recap of those
numbers. 5,700 sq ft per floor, second 1100 6 apartment units.
Construction Costs Eli ible TIF Ex enses
$1,533,000 $225,000
. Parking
TIF Approved
TIF Cashflows
up to $185,000
$ 45,000
$92,000NPY
None
GAP
$138,000
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At a staff meeting among O'Neill, Johnson, Cyr, and Koropchak, it was determined
through calculation of the existing and prop sed building spaee the number of parking
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HRA Agenda - 8/1/01
spaces required. The shortage was 23 stal s at $1,400 = $32,200. Assuming the City
would allow a cross easement, the parking cvelopment costs including parking f()r
Amoco site and contribution totaled $172, 00. $140,000 development + $32,200
defIciency-' $172,200 - $45,000 approved additional request of $127,200 for parking.
Lastly, the City prefers the 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 com arison, the HRA purchased the Fluth lot
(9,608 sq ft) on Broadway in 1997 for $50, 00 or $5.20 per sq ft.
At the July meeting, Mark Rutlreminded I embers, the TIF assistance becomes one of
policy: Does the lIRA consider the housin T substandard? Is the land price reasonable?
Does the City want redevelopment? What s a reasonable price for parking? Also, keep
in mind, the TIF cashflow numbers tor the ecent bond sale included the projection of
new projects or tax increment.
Mike Cyr will be present to inform the HR of refined construction numbers and request.
.
As you recall, the developer needs to comn ence construction by September. To
encourage redevelopment, the HRA needs 0 determine level of '1'1 F assistance for the
building project or parking project, both pI' jects, or either project. If the HRA can
determine the amount ofTIF assistance, thi ' will aid the developers with their decision to
proceed or not to proceed, and allows the d tails within the Contracts to be determined by
Legal Counsel. It may be best to direct sta fto place the parking issue on the Council
agenda given the decision of Council relati e to the Town Centre project.
B.
Alternative Action:
1.
A motion to otfer TIF assistance for the building project in an amount not to
exceed NP pay-as-you-go finance method at _ %
interest rate. Subject to developer a 'reeing, authorize HRA Attorney to drall
contract.
2.
A motion to offer TIF assistance for parking project in an amount not to exceed
_ ,.___ N PY up-front fin nee method (upon completion and evidence
of payment). Subject to developer a Treeing, authorize lIRA Attorney to draft
contract
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A motion of no TIF assistance.
4.
A motion to table any action relativ to parking assistance subject to Council
rev) ew.
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2
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liRA Agenda - 8/1/01
c.
Recommendation:
Not knowing the developer's refined num ers for the building and request fix TIF, no
recommendation is given. It is suggested he City parcel be purchased by Ilamond or the
joint property owners and that the parking equirements be submitted to the Council. If
the r IRA can determine the level of assista lce given the policy questions and the new
projected TIF cashflows, this will keep the project rolling. One suggestion for additional
parking: $172,200 - $32,200 (shortage fo given by Council) - $25,000 (garage) -
$45,000 (Amoco contribution) = $70,000. Total TIF for parking $115,000.
D. Supportinl! Data:
New TIF Cashl1ows.
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JUL. 11.20.01 1: 10PM EHLERS & ASSOCIATES
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HRA Agenda - 8/1/01
6.
Consideration to extend the effective dae of the Preliminar Develo ment
A ~reement or authorize execution of the Contract for Private Develo ment between
the HRA and Masters Fifth Avenue lnc
A. Reference and hackground:
At the HRA meeting, Lotus submitted a Ii" t of comments relative to the draft. copy of the
Contract. Most of these are comments onl and things for the developer to tie up. The
administration fee increases each time the eveloper changes the Contract. Lotus was
present at the] une HRA meeting when th commissioners approved the level of TIF
assistance. Typical interest rates are betw en 8 to 9%. You will note the new TIF
casht10w runs indicate a reduction in tax i crement from $124,000 to $92,000. Mark
Ruff's comment last month relative to Lot s' revised proforma: Given the housing tax
capacity didn't change that much, the dev loper's taxes will 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. If the developer doe not have a signed purchase agreement and
lease agreement, the HRA might consider he use of TIF with another developer.
B.
Alternative Action:
1. A motion to authorize execution 0 . the Contract for Private Development between
the HRA and Master Fifth A venue, Inc. as is or as amended.
2. A motion to extend the effective d te within the Preliminary Development
Agreement from August 2, 2001 t
3. A motion to deny extension of the effective date within the Preliminary
Development Agreement with Ma.ters Fifth Avenue and solicit new developer.
C. Recommendation:
After review and negotiate the applicable comments, recommendation is alternative no. 1.
In the future, the. developer should have a purchase agreement in place subject to financial
commitment prior to approaching the H
D. Supporting: Data:
Copy of the revised TIF Cashflows.
JUL.26.200111:17AM
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11 01 01:43p
Lotus Realt~ Servic s,Inc
(952)934-5472
p. 1
Lar
REALTY SE
DATE:
July 11, 2001
TO:
o Hie Kropchack
FROM:
Bradley C. Johnson
s
SUBJECT: Draft - Contract for redeveloped asters Fifth Avenue, Inc.
CC: Barry Fluth
Bill Milota
Please note the foUowing comments:
1. Development Agreement will be signed hen we have Amoco F urchase
Agreement in hand with no contingencie .
~~?O\O()-o
"0"\ ~l
2. Need to know estimated administration c sts. l:fV
3. $45,000 for parking is a firm dollar co itment.
4. The $185,000 acquisition cost is paid as "pay as you go" note. Need to establish
if it is still viable with real estate tax cha ges. .. See. M4c..tl e.J)
~ t .
a..~
5. Plan approved by HRA, Planning Co 'ssior, DQ.wntoWIl Devdopment <>>-'?l"<7"" ,\.S). 0--- '
Organization and City Council. '7 p
6. Closing and demolition only with all agr emems signed. Constr lction f~ing
in place, and bridge loan for acquisition om City to be repaid ~ing. ~
7. Interest rate on all "pay as you go" note should ~ ~
\~~~~~Q)
7'V
~;/
551 WEST 78TH STREET. P.O. BOX 235. CHANHASSEN, MINNESOTA 55317. (952) 9::4.4538. FAX (952) 934-5472
.
.
.
t:;(~x\:s
CONT
PRIVATE DEV LOPMENT
MASTERS FIFTH VENUE,INC.
HOUSING AND REDEVEL
IN AND
THE CITY OF M
Dated as of:
This document was drafted by:
KENNEDY & GRAVEN. Chartered
470 Pillsbury Center
200 South Sixth Street
Minneapolis, Minnesota 55402
Telephone: (612) 337-9300
DJG-199189VI
MN190-95
,2001
.
.
.
ARTIe E III
Ac uisition of Pro ertv. Financial Assistance
Section 3.1. Status of the Develo mentro ert\!. As of the date of this Agreement. the
Developer has acquired or entered into a purchase greement with a third party for the Development
Property. The Authority shall have no obligatio to purchase the Development Property or any
portion thereof.
Section 3.2. Soil Conditions. (a) The D veloper acknowledges that the Authority makes
no representations or warranties as to the conditio of the soils on the Development Property or its
fitness for construction of the Minimum Improvements or any other purpose for which the
Developer may make use of such property. Th Developer further agrees that it will protect
indemnify, defend. and hold harmless the Authori y, the City, and their governing body members.
officers, agents. and employees. from any claims 0 actions arising out of: (i) the presence. if any. of
hazardous wastes or pollutants on the Developme t Property. including but not limited to toxic or
hazardous substances or wastes. pollutants. or cont minants (including, "vithout limitation. asbestos,
urea formaldehyde. the group of organic com ounds known as polychlorinated biphenyls.
petroleum products including gasoline, fuel oiL cn de oil and various constituents of such products,
and any hazardous substances as defined in he Comprehensive Environmental Response,
Compensation and Liability Act of 1980 ("CERC A") 42 U.S.c. 99 9601-9657, as amended): (ii)
the status of the Development Property as a tre tment. storage, or disposal facility within the
meaning of. or other status of the Developme t Property within the ambit of the Resource
Conservation and Recovery Act of 1976 ("RCRA" ,42 U.S.c. 9 6901 et seq.. or any similar federal
or state law or regulation. or local ordinance; ( ii) a release or threatened release of toxic or
hazardous wastes or substances. pollutants or cont inants, from the Development Property within
the meaning of. or other status of the Developmen Property within the ambit of CERCLA. or any
similar federal or state Imv or local ordinance. (iv) the discharge of pollutants or effluents into any
water source or system or the dredging or filling of any waters or the discharge into the air of any
emissions. that as the case may be. "vould requ're a permit under the Federal Water Pollution
Control Act 33 U.S.c. ~ 1251 et seq.. orthe Clean Air Act. 42 U.S.c. 9 7401 et ~.. or any similar
federal or state law or local ordinance: (v) any other claim or cause of action under ReRA,
CERCLA. or any other federaL state. or local envi onmental statute. regulation. ordinance. or other
environmental regulatory requirement including ut not limited to the Minnesota Environmental
Response and Liability Act MinnesotiJ. Statutes. Chapter 115B ("MERLA") and the Minnesota
Petroleum and ReleiJ.se Cleanup Act. Minnesota St mtes. Chapter 115C.
(b)
Agreement.
The Developer' s obligations under his Section 3.2 shall survive termination of this
Section 3.3. Pa\'ment of Administrative C sts. The Developer agrees that it will pay upon
demand by the Authority. Administrati\-e Costs ( s hereiJ.fter defined). For the purposes of this
Agreement. the term ".--\dministrati\-e Costs" meal s out-of.pockct costs incurred by the Authority
and attributable to or incurred in connection \vith tl e negotiation and preparation of this Agreement
and other documents J.nd agreements in connectio \vith the development contemplated hereunder.
DJG-I <)9189\ I
MNI90-'l5
7
.
.
.
Out-of-pocket Administrative Costs shall be evid need by invoices, statements. or other reasonable
written evidence of the costs incurred by the A Ithority. As of the date of this Agreement the
Developer has deposited $5,000 with the Authorit - to be applied toward Administrative Costs. The
amount by \vhich this deposit exceeds the Auth rity's actual Administrative Costs. if any, shall.
upon demand by the Developer. be returned to the Developer, but no earlier than the date on which
the Developer receives a Certificate of Completio pursuant to Section 4.4 of this Agreement.
Section 3.4. Land Ac uisition and Dem !ition Costs: ParkinlZ Costs. In order to make 'f'\~,).::\
development of the Minimum Improvements eco omically feasible. the Authority will reimburse- , ,
the Developer, in the manner and amounts set fo h herein, for up to: (i) $185,000 of the "Land ... ~ 0-'0-\
Acquisition and Demolition Costs", hereby defined as the Developer's cost of acquiring the
Development Property and demolishing the existin y structure located on the Development Property; _
and ~ii) $45,?00.ofthe "Parking Improv~~t C s~aer,e~v~de~e~s W~J2ey~~er's cost. of
makmg parkmg Improvements on and deSigned t serve l'he DevelopmentProjjerty (the "Parkmg
Improvements"). Any costs in excess of these amounts shall be the responsibility of the Developer.
The Authority shall have no obligation to the Developer or to any third party with respect to any
defects in the construction of the Minimum Improv ments. ..,:~ -e.- e- ~ ~ .. c:r .
Section 3.5. FinancinlZ of Land Ac isition and Demolition Costs and ParkinlZ
Improvement Costs. The Authority will reimbur e the Developer for the Land Acquisition and
Demolition Costs and the Parking Improvement C sts in accordance with the following terms and
conditions:
(a) Subject to the terms and condition of this Agreement, the Land Acquisition and
Demolition Costs will be paid with simple in erest thereon at 8.00% per annum, interest
commencing to accrue on the date that the D veloper complies with the cost certification
requirement described in Section 3.5(h). The Land Acquisition and Demolition Costs will be paid
by the Authority to the Developer in semi-annual installments payable on each February 1 and
August 1 ("Payment Dates") commencing Augu t 1. 2003 and concluding no later than the
Termination Date. These payments will be made fj om Available Ta'{ Increment as defined in this
Section 3.5 and from no other source.
(b) The term "A vailable Tax Increment' means 90% of the Tax Increment with respect
to the Development Property as calculated by the C unty and paid to the Authority during the six
months preceding any Payment Date.
(c) If on any Payment Date there is avail ble to the Authority insufficient A vailable Ta'(
Increment to pay the amounts due on such date. the a ount of such deticiency shall be deferred and
shall be paid, without interest thereon, on the nex Payment Date on which the Authority has
available to it A vailable Tax Increment in excess of t e amount necessary to pay the amount due on
such Payment Date.
(d) Subject to the terms and conditions f this Agreement. the Parking Improvement
Costs will be paid. \vithollt interest thereon. within th'rty (30) days after the date thar the De\"eloper
complies with the cost certitication requirement desc .ibed in Section 3.5(h). This payment \vill be
made trom Excess Tax Increment as defined in this S ction 3.5 and trom no other source.
DJG-199189v I
MN190-95
8
.
(e) The term "Excess Tax Increment'" means tax increment paid by the County to the
City prior to the date of this Agreement with resp ct to the TIF District, but only to the extent that
such tax increment: (i) may hnvfully be used for he purpose of paying the Parking Improvement
Costs; and (ii) has noL prior to the date of this Ag eement. been paid or pledged to the payment of
any person other than the Developer.
(f) The Authority shall have no oblig tion to pay any portion of the Land Acquisition
and Demolition Costs or Parking Improvement osts that remains unpaid after the Termination
Date. The Authority may prepay all or part of the Land Acquisition and Demolition Costs or
Parking Improvement Costs at any time.
(g) The Authority shall not be obligat d to make any payment under this Section if: (i)
there is an E vent of Default on the Developer' s p rt under this Agreement that has not been cured:
or (ii) the Developer has failed to comply with the ayment procedures described herein.
(h) At least 30 days before becoming entitled to receive any payment hereunder, the
Developer must submit to the Authority:
.
(i) a payment request certific te signed by its duly authorized representative
stating that: the Developer has paid Land cquisition and Demolition Costs in at least the
amount of $185.000 and has paid Parkin Improvement Costs in at least the amount of
$45,000; that no Event of Default has occu ed and is continuing under this Agreement: and
that the Developer has received a Certific te of Completion pursuant to Section 4.4 of this
Agreement. The payment request certifica: e must be accompanied by evidence satisfactory
to the Authority that the Land Acquis'tion and Demolition Costs and the Parking
Improvement Costs have been incurred an paid by the Developer;
(ii) Either a No Action Letter, Closure Letter. other similar representation. or
some combination of the foregoing (as ap ropriate) from the Minnesota Pollution Control
Agency that in the sole judgment of th Authority offers adequate assurance that all
pollution and contamination on the D velopment Property has been appropriately
remediated. or documentation from a rep table engineer that in the sole judgment of the
Authority offers adequate assistance t at all pollution and contamination on the
Development Property has been approp iately remediated. such engineering report. if
provided. to be accompanied by a reliance letter from the engineer in favor of the Authority:
and
(iii) Documentation acceptable t the Authority that the Developer has obtained
all easements necessary for the constr ction. maintenance. and llse of the Parking
Improvements.
.
(i) The Authority makes no warranties or representations that A \'ailable Tax Increment
\vill be sufficient to pay the Land .-\cquisition an Demolition Costs. The Developer agrees and
understands that Available Tax Increment is subj ct to calculation by the County and change in
State law. and that a significant portion of Land Acquisition and Demolition Costs may remain
DJG-199189v I
MN 190-95
9
.
.
.
unpaid after the Termination Date. The Develope further agrees and understands that estimates of
A vailable Tax; Increment provided by the Auth rity and its agents, officers, or employees are
estimates only and not intended for the Developer' reliance.
Section 3.6. Use of Tax Increment. Exce t as set forth herein, the Authority shall have no
obligation to the Developer with regard to its use f Tax Increment or Excess Tax Increment and
may use Tax Increment and Excess Tax Increment or any lawful purposes, whether set forth herein
or otherwise.
Section 3.7. Leases. At all times during e term of this Agreement, the Developer shall
provide the Authority with copies of all leases in e ect with regard to the nonresidential portions of
the Minimum Improvements.
DJG-199189vl
MN 190-95
10
.
Construction of Mini
rovements
Section -+.1. Construction of 1m rovement . The Developer agrees that it will construct the
Minimum Improvements on the Development Property in accordance with the approved
Construction Plans and will operate and maintain. preserve and keep the Minimum Improvements
or cause them to be maintained. preserved and k pt with the appurtenances and every part and
parcel thereof, in good repair and condition. The uthority shall not have any obligation to operate
or maintain the Minimum Improvements.
Section 4.2. Construction Plans. efare commencement of construction of the
Minimum Improvements, the Developer shall su mit to the Authority Construction Plans. The
Construction Plans shall provide for the construction of the Minimum Improvements and shall be in
conformity with the Redevelopment Plan, this Ag eement, and all applicable State and local laws
and regulations. The Authority will approve he Construction Plans in writing if: (i) the
Construction Plans conform to the terms and con itions of this Agreement: (ii) the Construction
Plans conform to the goals and objectives of the edevelopment Plan: (iii) the Construction Plans
conform to all applicable federal. state and local I ws, ordinances, rules and regulations: (iv) the
Construction Plans are adequate to provide for con truction of the Minimum Improvements; (v) the
Construction Plans do not provide for expenditures' n excess of the funds available to the Developer
from all sources for construction of the Minimum mprovements; and (vi) no Event of Default has
occurred. Approval may be based upon a review b. the City's Building Official of the Construction
Plans. No approval by the Authority shall relieve he Developer of the obligation to comply with
the terms of this Agreement or of the Redevelopm nt Plan, applicable federal. state and local laws.
ordinances, rules and regulations, or to constru t the Minimum Improvements in accordance
therewith. No approval by the Authority shall c nstitute a waiver of an Event of Default. If
approval of the Construction Plans is requested by the Developer in writing at the time of
submission, such Construction Plans shall be dee ed approved unless rejected in writing by the
Authority. in whole or in part. Such rejections sh 11 set forth in detail the reasons therefore. and
shall be made within 10 days after the date of their eceipt by the Authority. If the Authority rejects
any Construction Plans in whole or in part. t e Developer shall submit new or corrected
Construction Plans within 10 days after written no ification to the Developer of the rejection. The
provisions of this Section relating to approval. rejection and resubmission of corrected Construction
Plans shall continue to apply until the Constructi n Plans have been approved by the Authority.
The Authority's appro\'al shall not be unreasona ly withheld. Said approval shall constitute a
conclusive determination that the Construction PIa s (and the Minimum Improvements constructed
in accordance with said plans) comply to the Autlority's satisfaction with the provisions of this
Agreement relating thereto.
.
(b) [1' the De\eloperdesires to make an. Material change in the Construction Plans after
their o.pprovo.l by the .-\uthority. the Developer shall submit the proposed change to the Authority for
its o.pproval. If the Construction Plans. as modified by the proposed change. conform to the
requirements of this Section -+.2 of this Agreem nt with respect to such previously approved
Construction Plans. the .-\uthority shall approve th proposed change o.nd notify' the: De:\'eloper in
.
D-'G.19l) 189" I
MNI<)O.l)5
I I
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writing of its approval. Such change in the Co struction Plans shall. in any event. be deemed
approved by the Authority unless rejected. in whol or in part. by written notice by the Authority to
the Developer, setting forth in detail the reasons t erefor. Such rejection shall be made vvithin ten
(10) days after receipt of the notice of such change. The Authority's approval of any such change in
the C onstmction Plans will not be unreasonably wi hheld.
Section 4.3. Commencement and Com I tion of Construction. Subject to Unavoidable
Delays. the Developer shall complete demolition of the existing gas station on the Development
Property by August 31. 2001. Subject to Unavoidable Delays. the Developer shall complete the
construction of Minimum Improvements by . 20_ All work with respect to the
Minimum Improvements to be constructed or p ovided by the Developer on the Development
Property shall be in conformity with the Constru tion Plans as submitted by the Developer and
approved by the Authority.
.
The Developer agrees for itself, its success rs and assigns, and every successor in interest to
the Development Property. or any part thereof, that the Developer. and such successors and assigns.
shall promptly begin and diligently prosecute to c mpletion the development of the Development
Property through the construction of the Min mum Improvements thereon. and that such
construction shall in any event be commenced an completed within the period specified in this
Section 4.3 of this Agreement. The obligatio to constmct the Minimum Improvements in
accordance with this Section touches and concerns the land, and shall run with the property. and be
binding upon all successors and assigns to the evelopment Property. After the date of this
Agreement and until- construction of the Mini urn Improvements has been completed. the
Developer shall make reports, in such detail and a such times as may reasonably be requested by
the Authority. as to the actual progress of the Developer with respect to such constmction.
Section 4.4. Certificate of Completion. a) Promptly after completion of the Minimum
Improvements in accordance with those provisi ns of the Agreement relating solely to the
obligations of the Developer to construct the Mi imum Improvements (including the dates for
beginning and completion thereof). the Authorit. will furnish the Developer with a Certificate
shown as Exhibit B. Such certification and such determination shall not constitute evidence of
compliance with or satisfaction of any obligation 0 the Developer to any Holder of a Mortgage. or
any insurer of a Mortgage. securing money loaned to finance the Minimum Improvements. or any
part thereof.
(b) If the Authority shall refuse or fail to provide any certification in accordance with
the provisions of this Section 4.-1- of this Agreement the Authority shall. vvithin thirty (30) days after
written request by the Developer. provide the De :eloper with a written statement. indicating in
adequate detail in what respects the Developer has failed to complete the Minimum Improvements
in accordance with the provisions of the Agreeme t. or is otherwise in default. and \vhm measures
or acts it will be necessary. in the opinion of the A lthority. for the De'v'eloperto take or perform in
order to obtain such certification.
(c) The construction of the 0.-1inimum mprovements sho.ll be deemed to be complete
upon Issuance of a certificate of occupancy b) the City for all portions of the Minimum
Improvements.
.
DJG-1991891'1
MNI9().<J5
12
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ARA Agenda - 8/1/01
7.
Consideration of authorizin HRA Attor e to draft a Contract for Private
Develo ment A reement between the Hand MLC Buildin and Remodelin
A. Reference and Backeround:
This item is related to the two above items nd may be irrelevant if items one and two are
not authorized. It appears if the level of as.. istance are determined and agreed upon by the
developers, an independent Contract with ike Cyr would guarantee the construction of
the parking lot in a timely manner. This a reemcnt would outline the joint parking
agreement, cross easements, need to acquir the storage garage and city lot, and is ticd to
the development of the Amoco and Smith ites.
B. Alternative Action:
1. A motion authorizing HRA Attorn y to draft a Contract for Private Developmcnt
Agreemcnt between the HRA and LC Building and Remodeling.
2. A motion to deny authorizing HRA Attorney to draft a Contract for Private
Development Agreement between he HRA and MLC Building and Remodeling.
..,
-) .
A motion of other.
4. ^ motion to table any action.
C. Recommendation:
None.
D. Supporting Data:
None.
.
.
.
HRA Agenda - 8/1/01
8.
ithin TIF District No. 1-22.
a) O'Connor - July 26, Helvey - Talked wit Attorney Peterson yesterday. Peterson not
eager to bring to trial, has meeting with 0' ~onnor on July 27. Now that in legal
proceedings, the HRA will require more d( cumentation about business. Helvey will call
on Aug 1 iCncw information.
b) lTans Hagen meeting - It is our goal to h ve a Contract executed with i-lans by October
10, 2001, as this is thc date the Preliminar Agreement expires. It was decided given the
eminent domain process, the we wait and 0 out for plans and specs for the
water/sewer/road replacement in Decembe /January. People thought we'd get better
prices. A PUD would be required. Hans refers and thinks overall costs will be lower if
the entire site can be cleaned-up and broug t up to 100% compaction (pad finished site)
at one time. Need to call American Testin or Braun for cost estimates. Will be a spring
2002 project. Approximately 1,800 sq ft l'vable space, selling price $185,000. Expected
build-out time one year.
c) Fire Department - Fire Chief Douglas a ked if the HRA would consider reimbursing
the Fire Department for heverages and piz.a following the test burn. See attached
invoices $192.90 and $86.26. He also me tioned cost of straw bales but haven't received
invoices. Additionally, the HRA is reque.ted to reimburse Bob Warner for window pane
damaged during test burn. House next to 30stic.
d) One year from now, the Carlson's will ave vacated the house along the river.
e) Once the HRA gets the Amoco, Smith, Hagen projects off the ground, we'll need to
see what dollars are left, if any, prior to b ginning discussions with Steve Johnson.
.
.
.
HRA Agenda - 8/1101
9.
Tabled - Consideration to discuss amen
Business Subsid Criteria of the HRA a
A. Reference and Background:
At the July HRA meeting, the commission rs were advised of the IDC's question: Why
does the city use tax payer's dollars to assi t a business who pays non-livahle wages?
Because orthe long agenda and lack of in rmation, the commissioners tabled the item
and requested further research of other cm munity's wage level criteria. The S1. Cloud
newspaper reported $12.25 average per ho II' without benefits. "fhe Wright County
Partnership as least $10.00 per hour witho t henefits. 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 leve criteria. Attached is the wage and job survey
results of 2000. Perhaps one needs to defi e "livable wage",? Chair Frie can inform the
HRA on income levels needed to qualify f I' mortgages. Will Monticello remain
competitive in the market for industrial de elopment'?
Also attached are the comments and criteri' from surrounding communities resulting
fl:om the research conducted by Lori.
B.
Alternative Action:
I. A motion to amend the wage level riteria within the Business Subsidy Criteria of
the HRA and calling for a public h aring of September 5, 2001.
2. A motion to deny amending the w, ge level criteria within the Business Subsidy
Criteria of the HRA.
3. A motion to table any action.
C. Recommendation:
Although leaving the wage level criteria at $9.00 per hour does allow for more flexibility,
it is a concern to use TIF for bringing in h sinesses paying marginal wages and than
turning around to use TIf for affordable h using. In addition and at one time, it was the
goal of the City to increase the value of th homes heing constructed in Monticello. You
will note the S1. Cloud wage level states $ 2.25 per hour on an average. Our's states at
least $9.00 per hour. At the EDA meeting in July, the wage level criteria was mentioned
and the immediate reaction from the group was leave the criteria as is.
HRA Agenda - 8/1/01
.
D.
Suoportin2 Data:
Wage survey of 2000, criteria of surroundin communities, and copy of criteria.
.
.
2
~i~ ~t. - {,J.I{ (dJL 0'~ - '8irn
~ - 1>0 nDt Spt~ \;J~ !1J)~. VVu..t J{XciJJlcM) 0il<fl/
.. VlOr NJ\)tn' ditJ .
S+,~iUtQL,1 - No POltCiLS - ~r- . ~ fhtir EDA 8. /s SDm(lIJi~
~ ~ ~~ +1Jt~ Implement'
S k ~\\N' - /ISo :.pt.u-!t: U 0~ L J bur fA) " ( W ON- ~ ~
~ Ck~' .7\wngLS Mm ~DO i-br0-. S EDi1:\loOt.(
fOr cWuJ't tuwrt N U i' iwJim. ~ L D 00 fh In . {iy J)'ld>>Jfn'al
- W;1l ~~; L peA MDJ-d~--/
A~i~~t.- - ~+ IJDictrnoi() l'L0
.
.
01/19/01 13:28 tt4411425
CI /ELK RIVER
141 002
..
.
City of Elk Riv r, Minnesota
Tax Increme, t Financing
Policy & A plication
Adopted: A gust, 1991
Revised: M rch, 2000
.
.
07/19/07 13:28
ft4417425
/ELK RIVER
141 003
T
. .,..
1. Policy Purpose 3
II. Objectives of Tax Increment 3
ID. City of Elk. River Policies for he Use of TIF 4
IV. Qualifications 0
v. Subsidy Agremnent & Report g Requirements .0
VI. Application Process 7
VIT. Application 8
Applicant Information 8
Project Information 9
Public PlJ:t'pose 9
Sources & Usee 10
Checklist & AdditionallDfol' 11
VIII. Application Review W orkshe t 12
.
IX.. Exhibits 14
A Corporati on/Partner p Description
B Project Description
C Shal"eholders
D But-for AnalY!:lis
E Prospective r .essees
.
2
07/19/07 13:28
'6'4417425
I
CI /ELK RIVER
@004
.
I. POLICY PURPOSE
For the purposes ofthit; dOClJ.m~l,t. the term · City" sh.all include the Elk Riuer City
Council, Economic De(JelCJpment Aurhority, nd Housing and RedlweIQPm.en.t Authority.
The purpose of this policy is to estab ish the City of Elk River's position
relating to the use of Tax Increlnent inancing (TIF) for private
development above and beyond the r quirements and limitations set forth
by State Law_ 'l'his policy shall be u.8 d at:; a guide in the proce~sing and
review of applications requesting- t increment assistance. The
fundamental purpose of tax wcreme t financing in Elk River is to
encourage desirable development or , edevelopment that would not
otherwise occur but for the assistanc :provided through TIF.
The City of Elk River is granted the ower to utilize TIF by the Minnesota
Tax Increment Financing Act, as am ded. It is the intent of the City to
provide the minimum amount of TIF at the shortest term required for the
project to proceed. The City reserves the right to approve or reject
projects on a case by case basis, taki g into consideration established
policies, project criteria, and demand on. city servicl;~s in relation to the
potential benefits from the project. cting policy criteria does not
guarantee the award of TIF to the pr oect- Approval or del1ia,1 of one
project is not intended tn set precede t tor approval or denial of another
project.
.
u. OBJECTIVES OF TAX INO FINANCING
As a matter of adopted policy, the Cit will consider using TIF to assist
private development projects to achi e one or more of the following
objectives;:
· To retain local jobs and/or in ease the number and diversity of
jobs tha.t offer stable amplo nt and/or attractive wages and
benefits.
. 1'0 encourage additional unsu sidized private development in the
area. either directly or indi,rec ly thro'ugh "spin off' development.
· To facilitate the developn"1ent rocess and to achieve development
on sites which would not be de eloped without TIF assistance.,
· To remove blight and/or enco 'age redevelopment of commercial '
and industrial areas in the cit that result in high quality
redevelopment and private re' vestmeot_
. To offset. increased costs of red velopment (i.e. contaminated site
clean up) over and above the c sts normally incurred in
development.
.
. To create oppurtunities for affo dable housing.
3
07/19/07 13:29
.
.
.
'lt4417425
IELK RIVER
raJ 005
. To contribute to the impleme tation of other public policies, as
adopted by the city :Eron" tim to time, such as the promotion of
quality urban or architectur. design, energy conservation, and
deCl"easing capital and/or ope ating costs of lucal government.
.,.
ID.
POLIcms FOR THE USE F TIF
a. When possible, TIF shall b used to finance public
improvements associated 'th the project. The priority for the
use ofTIF funds is;
1. Public improveme t.s, legal, anm;n;strative, and
engineering costs.
2. Site preparation, s te improveolent,land purchase, and
demolition.
3. Capitalized intere t, bonding costs.
b. It is the City's policy to es blish the following types ofTIF
districts:
1. Economic Develop ant Districts
. It is desired tl t the project result in a minimum
creation of on :full time job per $25,000 ofTIF.
2. Redevelopment Di tricts
. The market v ue of a redeveloped site shall
increase by a "nimum of 50% of the current
market value.
Other types of TIF district . along with specific criteria, may be
considered on a case by cas basis.
C. TIF a.ssistance will be pro ded to the developer upon receipt of
the increment by the City, therwise referred to as the pay-CLS-
you-go method. Requests fi r up front financing will be
considered on a case by cas basis.
d. A maximum of ten percent 10%) of any tax. increment received
from the distl-ict shall be r tained by the City to reimburse
administrative costs.
e. Any developer receiving T assistance shall provide a
. minimum of twenty percen (20%) cash equity inVeSDllent in the
project.
f. TlF will not be used in cire UDstances where land and/or
property price is in excess ffair market value.
g. Developer shall be able to emonstrate a market demand for a
proposed project. TIF shalll10t be used to support purely
speculative projects.
4
07/19/07 13:29
'5'4417425
CI IELK RIVER
I4J 006
.
h. TIF will not be utilized in ases where it would create an unfair
and significant competitiv financial adva.ntage over other
projects in the area,
,..
1. TIF shall not be used for p ojects that would place extraordinary
demandr:; on city serv1C'.es 0 for projects that would generate
significant environmental pacts.
J. The developer m.ust provi adequate financial guarantees to
ensure completion of the p oject, including. but not limited to:
assessment agreements, Ie ters of credit, personal guaranties,
etcetera.
k. The developer shall adequ tely demonstrate, to the City's sole
satisfaction, an ability to c mplete the proposed project based on
past development experien e, general reputation, and credit
history, among other facto $, including the size and scope of the
proposed project.
L For the purposes ofunde .ting the, proposal, the developer
shall provide any requeste 1 market, financial, environm.ental. Or
other data requested by th City or its consultants.
.
IV. PROJECT QU~'ICATIO S
All TIF projects considered by the Ci of Elk River must meet each of the
following requirements:
a. To be eligible for TIF, a pr dect shall result in:
i. The new constructio of a minimum of 25,000 square feet;
n. A min;mum incrcas of $25,000 per year in property.
taxes; and,
111. Have a market valu of at least $1,000,000 upon
completion.
b. The proj~ct shall meet at 1 ast one uf the objectives set forth in
Section II and satisfy all e provisions set forth in Section In of
this document.
c. The developer shall demon trate that the project is not
financially feasible bu,t-for ' e use of TIF.
d. The project must be cansis nt with the City's Comprehensive
Plan, Land Use Plan, and oning Ordinances.
.
5
07/19/07 13:30
'Z!'4417425
141 007
.
e. The project shall serve at I ast two of the following public
purposes:
. Creation of jobs wit livable wages and benefits.
. Increase of tax base.
. Enhancement. or div rsmcation of the cit;ys economic base.
. Industrial develop" nt that will spur additional private
investment in the ea.
. Fulfillment of the C'ty's Strategic Plan for Economic
Development.
. Removal of blight or the rehabilitation of a high profile or
priority site.
v. SUBSIDY AGREEMENT & PORTING REQumMENTS
All developerSlbusinesses receiving increment financing assistance
from the City nf Elk River shall be ubject to the provisions and
requiremen.ts set forth by state stat te 116J.993 and summarized below.
All developers/businesses receiving IF assistance shall enter into a
subsidy agreement with the City of lk River that identifies: the reason
for the subsidy, the public purpose erved by the subsidy, and the goals
for the subsidy, as well as o1J:ltlr crit ria set forth by statute 116J.993.
.
The developer/business shall file a aporl annually for two years afoor the
date the benefit lS received or until 1 goals set forth in the application
and performance agreement have een meet, whicbever is later. Reports
shall be completed using the fonnat drafted by the State of Minnesota
and shall be filed with the City ofE k River no later than March 1 of each
year for the previous calendar year. Businesses fulfilling job creation
requirements must file a report to at effect with the city within 30 days
of meetil1g the requirements.
The developer/business owner shall maintain and operate its facility at
the site where TIF assistance is use for a period of five years after the
btloefit is rtlctlived.
In addition to attaining or excee the jobs and wagtlS goals set forth in
the Subsidy Agnemen.t, the applic t shall meet the qualifications set
forth in Section IV of this document
Developers / Businesses failini" to c mply with the above provisions will
be subject 'to fines. repayment requi ements, and be deemed ineligible by
the State of Minnesota to receive y loans or grants from public entities
for a period of five years.
.
6
07/19/07 13;30
'0'4417425
CI IELK RIVER
141 008
.
VI. APPLICATION PROCESS
1. Applicant submits the campI ted application along with all
application fet!s.
2. City staff reviews the applic ion and completes the Application
Review Worksheet.
3. Results of the Worksheet are submitted to the appropriate
governing authorities for pre iminary approval of the proposal.
4. If preliminary approval is gr ted, the Tax Increment Financing
Plan, along with all necessa. notices, resolutions and certificates
are prepared by City staff an or consultants.
5. Notices are published and se t to the county and school board.
6. Public hearing{s) on the prop sed project are held.
7. The EDA or lIRA recommen s approval or denial of the project to
the City Council.
.
8. The City Council grants fmal approval or denial of the proposal.
.
7
07/19/07 13:30
.
VII. APP
A. APP
Name 0
Addres
Primary
Addres
Phone
On a se
. B
m
E
. B
.
. L
fi
E
. A
Attome
Addres,s
Phone
Account
Address
Phone
Contrac
Addl-ess
Phone
Enginee
Adw'ess
Phone
.
Architec
Address
Phone
I
'B'4417425 CI l'Y IELK RIVER
I ..- ..
I
LICATION }4"OR TAX INeli EMENT FINANCING
LlCAN'r INFORMATION
f CorporationIPartnersmp
s ...
Contact
s
Fax Email
parate sheet, please prO\7ide ~ he following:
rief des en po on of the corpor tion/partnership's business,
eluding hioStory~ principal pr lduct or service, etc... Attach as
xhibit A .
riet description of the pt'opos ~d project. Attach as Exhibit B.
ist names uf officers and sha eholderslpartners with more than
ve percent (5%) interest in th e corporation/partnership. Attach as
:x:hibit c.
but-fo1' analysis. Attach as Exhibit D.
y Name
Fax Email
ant Name ..
Fax Email
tor Name
Fax Email
r Name -",..-
Fax Email
-t Name
Fax Email
8
....--.- .-.-- u_
tal 009
07/19/07 13:31
tt4417425
CI lEU RIVER
Igj 010
.
B. PROJECT INFORMATION
The project will be:
_Industrial Greenfield:
_Commercial Redevelopment:
_Industrial Redevelopment:
_Other
':'"
New Construction _ Expansion
N ~w CU11.iiItructiOJl _ Rehabilitation
ew Construction _ Rehabilitation
The project will be: _Owner Dc upied _Leased Space
If le~ed lSpO:Lctl. pleWle O:LUach O:L lilSt names d addresses of future lessees 8..1ld indicate
the status of commitments or lease aereeme ts. Attach as Exhibit E.
Project Address
Legal Description
Site Plan Attached:
No
Amount of Tax Increment Requeste
Land Pw-c ase $
Public Improve ent $
Site Improve nt $
.
Current Real Estate Taxes on Froje
Estimated Real Estate Taxes upon
$
Phase I $
Phase II $
Construction Start Date:
Construction Completion Date:
If Phased Project:
% Completed
% Completed
C. PUBLIC PURPOSE
It is the policy of the City of Elk Riv r that the use of Tax Increment
Financing should result in a benefit 0 the public. Please jndicate how
this project will serve a public purpo e.
.
_Job Creation: Number of
Number of jobs
Average hourly
_N ew industrial development
investment in the area,
_Enhancement or diversificati n of the city's economic base-
_'l"he project contributes to the fillment of the City's Strategic
Plan for Economic Developn'le t_
_Removal of blight or the reha ilitation of a high profile Or priority
site.
_Other:
jobs _
ated by project
age or jobs created
hich will result in additional private
9
07/19/07 13:31
ft4417425
eI IT IELK RIVER
NAME
.
nt
ering Fees
ction
10
-....
.
D. SOURC~S & USES
SOURCES
Bank Loan
Other Private Funds
Equity
Fed GrantJLoan
State GrantlLoan
EDA Micrn Loan
Tax: Increment
ill Bonds
'!'OTAL
.
USES
Land Acquisition
Site Development
Con,structioD.
Machinery & Equipme
Architectural & Engine
Legal Fees
Interest During Constru
Debt Service Reserve
Contingencies
TOTAL
.
141011
AMOUNT
$
$
$
$
$
$
$
$
$
AMOUN'l'
$
$
$
$
$
$
$
$
$
$
07/19/07 13:31
tl'4417425
ra! 012
.
E. ADDITIONAL DOCUMENTATIO
Applicants will also be required to p ovide the following documentation.
A) Written business plan including a description of the
business,ownershipl anagement, date established,
products and services, and fut\.1I'e plans
B) Financial Statements or Past. Two Years
Profit & Los Statement
Balance She t
C) Current Financial St.- tements
Profit & Los Statement to Date
Balance She t to Date
F) Personal Financial 8t tem.ents of all Major Shareholders
Profit & Los
Current l"ax
D) Two Y car Financial
.
G) Letter of Commitmen from Applicant Pledging to Complete
During the Pl"oposed roject Duratiol1
H) Letter of Commitmen from the Other Sources of Financing,
Stating Terms and Co ditions of their Participation in
Project
I) Applica.tion fee of $500 (to be returned upon project
completion.)
Note; All Major ~areholders will be re uired to sign personal guarantees if
up front financing of the project is requ' ed.
- The undersigned certifies that all infonnatinn _ nvided in thi!i application is true and correct
t.o the best of the undersiiDed's knowledge. Th undersigned authori~e.s the City of Elk
River to check credit references and verify :6JJ. cia! md other information- The undersigned
also a.arees to provide any additiollal informati llS may be requcsted by the City afLer the
:fi.li.ng of this application.
Applicant Name
Date
By
Its
.
1
141 013
07/19/07 13:32
'C4417425
CI /ELK RIVER
.
TAX INCREMENT FINANCING P OPOSAL REVIEW WORKSHEET
1. The project meets the criteria se forth in Section III of the CitY's
Tax: Increment Financing policy.
a) Meets minimum threshold for size, value, and tax capacity_
b) Maets at least one oft.he 0 dect.ives in Section. III and satisfies
the provision set forth in S ction IV.
Demonstrates need for TJ with the but-fm' a.nalYf;if;_
Consistent with all city pI. s and ordinances.
Serves at least two public urpose as defined in Section IV.
___ c)
e)
f>
3. Job Creation in. the City of Elk. ver:
Number of new jobs as a result 0 the project.
Number of Axisting/retainedjobs divided by 10.
Total
2. Ratio of Private to Public Invest
$ Private investment
$ Public Investment
Ratio Priva.te: Public
.
4. Ra.tio of TIF to new jobs created:
$ TIF request
Number of new jobs create
$ of TIF per new job crca. cd
5. Wage Level of jobs created:
Average hourly wage
of jobs created:
6. Project size:
The project will result in the constructio
of square feet
.
12
ent in Project; Point.s:_
5:1 5
4:1 4
3:1 3
2:1 2
Less than 2:1 1
Points:_
40+ 5
30+ 4
20+ 3
10+ 2
Less than 10 1
Points:_
$15,000 or less 5
$20,000 or less 4
$22,000 or less 3
$25,000 or less 2
Over $25,000 1
Points:_
Over $211 hour 5
$18-211 hour 4
$14.-17 / hour 3
$10-13/ hour 2
Undtlr $10 1 hour 1
80,000+
65,000+
50,000+
35,000+
25,000+
Points:
5
4
3
2
1
07/19/07 13:32
'5'4417425
CI IT/ELK RIVER
I4l 014
.
7. Type of Project:
100% Owner Occupii:!d
Mix Owner Occupied & Investm, nt
lnvesbnentFToperly
Points:_
5
4
3
8. Use:
Manufacturing
Research & Development
Commercial Redevelopment
WarehouseIDistribution
Housing
Points;_
5
4
3
2
1
9. The project will pay anJ1ual
property taxes in the first fully
assessed year of $__
Points:_
85,000+ 5
70.000+ 4
55,000+ 3
40.000+ 2
25,000+ 1
.
10. Likelihood that the project will JesuIt in
unsubsidized, spin~off development.
Points:_
5
High
Moderate
Low
3
1
Sub.. Total Points:
o P a possible 45 points.
9. Bonus Points
Bonus Points:
The project will be 100% Pay-as.you-gu TIF.
The project contributes to the goa s of Energy City.
. Product promotes sensible us of energy, OR
. Project utili:i\CS significant en argy efficient design &/OT:
materials in construction.
3 points
2 points
Total Points:
Overall project analysis:
High
Moderate
Low
Not Ehg bIe
45..38 points
37-29 points
28M20 points
19-0 points
.
13
07/19/07 13:32
.
'5'4417425
~015
CI IELK RIVER
EXH IT A
Description of the corp ration or partnership
EXH IT B
Description of the proposed project
ITC
Names of officers and sharehold slpartners with more than five
percent (5%) interest in the corporation/partnership.
.
.
EXH
But-for
EXII IT E
Prospectiv Lessees
14
o
7/19/07 13:32 fl'4417425 CI IT/ELK RIVER IgI
.- -,.-
SAMPLE BUT-F OR ANALYSIS
WITH ND WITH
T AX INCRE~ ENT TAX INCREMENT
SOURCES ANI USES SOURCES AND USES
SOURCES SOURCES
Mortgage 9,600.000 8,667,000
Equity 2.400.000 2,400,00
Tax Increment Financing 0 933,000
TOTAL SOURCES 12.000,000 12.000.000
USES USES
Land 1.500.000 , .500,000
Site Work 300,000 300,000
Soil Correction 468,000 468.000
Demolition 100.000 , 00,000
Relocation 65,000 65,000
Subtotal Land COAtA 2.433.000 2.433.000
Construction 6,750,000 6,750.000
Finish Manufacturing 250,000 250.000
Subtotal Construction Costs 7.000.000 7.000.000
Soft Costs 350.000 350.000
Taxes 35,000 35,000
Finance Fees 650,000 850,000
Project Manager ~,OOO 542.000
Developer Fee 540,000 540,000
Contingency 250.000 250.000
Subtotal Soft Costs 2.567,000 2,567,000
lOT AL USES 12,000000 12.000.000
Income State nent Income Statement
Sq. Ft. Per Sq. Ft. Sq.Ft. PerSq.Ft.
Rent-Space 1 100.000 $B.OO 800.000 , 00.000 $8.00 600,000
Rent-Space 2 25,000 $6,50 212,500 25,000 $~t50 212,500
Rent-Space 3 25.000 $9.00 225,000 25,000 $9.00 225,000
Other 0 $0.00 0 0 $0.00 0
1.237,500 1,237,500
Mortgage 20 ierm ',051.646 20 Term 949.439
9.00% Interest 9.00% Interest
9.600,000 Principal 8,667,000 Principal
Net Income 185.854 288,061
Total Return on Equity 7.74% 12.00%
15
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SHOP ON LINE AT WWW.MAUSFOODS.COM
763-295-2634
AMBER
0001 05 05254784 06/26/01 S:02pm 260
$ SUAVE LOTION $1. 79 "I
SUAVE LOTION $0. 10- ~
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$ SUAVE LOTION $1. 79 T
SUAVE LOTION $0.10- T
DR PEPPER $3.99 TF
DR PEPPER $3.99 TF
KLARBRUN mlON $1. 89 TF
5 @ $3.99 EACH
CHERRY COKE $19.95 fF
4 @ $3.99 EACH
CLASSIC CJi\E 515.96 .,'
2 @ $3.99 EACH
$ BARQS 12PK $7.98 TF
BAROS 12PK X 02 $1. 40- TF
2 @ $3.99 EACH
DR PEPPER $7.98 TF
2 @ $3.99 EACH
SPRITE 12 PACK $7.98 TF
2 @ $3.99 EACH
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$ DT MM ORANGE $7.98 TF
DT ~1~1 ORANGE X 02 $1.40- TF
ITEM SUBTOTAL $89.26
EXTRA CARD SA TOTAL $3.00-5,
SUBTOTAL $86.26
TOTAL $86.26
INSTORE CHARGE $86.26
GARY HOST MONTICELLO FIRE DEPT.
CHANGE $0.00
EXTRA CARD SA APPLIED
SUAVE LOTION X 0002 $0.20
BARQS 12PK X 0002 $1. 40
DT ','M ORANGE X 0002 $1.40
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Purcell Plumbing & Heating, Inc.
220 Sandberg Rd., Monticello, MN 55362
95t767th Street N W, Annandale, MN 55302
Metro Phone 763-295-5445 . Toll Free Non-Metro 1-B88-434-40n
Larry Purcell, Master License No. 3019M
\I~ r~) ~ 1
No.
(VAV! (II) Irlll~~ (IIJ 1111 r~] I~ m
019885
DATE; 0 ORD~~
CU"=::~J:_~N' . -~-==--=-==--
BI TO
~H'::LPF-~.R STARTING r)~T~
OFH)ER TAKEN BY
-L_
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-"'.............._~._-'~.,~-""_.,~..._,._-.,._,.,'_..,---~-''''-, '---"'-"'~..
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TOTAL ABOR
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57 _~o.
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TOTAL MAT RIALS
.
D'ATF-C02 ''0 iJ-----yo;>;<(-~iiRY------ -- TOTAL AM U~T $ S..<
. ~:::,,_.t----,:- ifd-=:/=.=---"'---="-'---."'-----cc:::==:'-"--cc----======--"=:=:.:.=...--c;'.... '---:C:"-... U-"'--.==
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.--'.--. '--.".'-"'."- completion
01' work
fAX
Sh~lldtllre __."._"'~_".__
,JWOCC-870 .3
PRINTED IN V.SA.
I h8reby dtkfl()wl~rJ.~[) th~~ ";atl:.ifactory cOf'llplelloll
of ttle :lboVi'~ rJe'.~I~nbed wor k
\
ft City of Monticello
. . 505 Walnut Street, Suite #1
lIIIJ Monticello, MN 55362
~ 763 295-2711
WATER/SEWER BILL
10.00
ATTN: OLLIE KOROPCHAK
HRA
505 WALNUT ST STE #1
MONTICELLO MN 55362
4% Pen~ity Add~d After Due Date
AMOUNT PAID
DETACH AND RETURN THIS PORTION WITH VOUR PAVMENT.
RETAIN THIS PORTION FOR VOUR RECORDS.
CITY OF MO TICELLO
505 WALNUT STREET, SUITE #1 - MONTICEllO, MN 55362
3 WALNUT 8T
6/21/2001 - 7/01/2001
001-0043-00-00
Previous Balance
Penalties
PAYMENT - THANK YOU -
djustments
Meter ReadinJ ~f OjlicOblei
Period: 6 1 2 0 0
Meter Seria
0:
7/0'1/2001
# 50319804
"Gallons of Water Per Day = USAGE X 7.5 = [Gal. Per Olr) divided by 90 days"
WATER - Res
M i see '1'1 arH30lJS
Current Char'ges
34490
34490
H
10.00
10.00
AMOUNT DUE NOW
- 1 0 .0 0 __~'_.._~_., _ THIS STATEMENT REFlECTS ~~YMENT~. AS OF__ 7/24/2001
ater Availability charges have increased to $24.
VISA & MASTERCARD are now accepted for utility payments. Electronic
payment is also available. If you are interested in any of these payment
OPtions. please call 271-3203.
'~'_'_N"---------....~__...""".~~
BILLING INQUIRIES CAL (763) 295~2711
. '-'''Y VI IVIVIIUlit:HIU
. 505 Walnut Street, Suite #1
[I;j Monticello, MN 55362
~ 763 295-2711
WATER/SEWER BILL
10.00
ATTN: OLLIE KOROPCHAK
HRA
505 'I'IALNUT ST #1
MONTICELLO MN 55362
4% Penalty Added After Due Date
AMOUNT PAID
DETACH AND RETURN THIS PORTION WITH YOUR PAYMENT.
RETAIN THIS PORTiON FOR YOUR RECORDS.
CITY OF MO TICELLO
505 WALNUT STREET, SUITE 111 . MONTICELLO, MN 55362
Previous Balance
Penalties
PAYMENT - THANK YOU -
djustments
Meter Readi, (if ajPlicablei
Period: 6 2 1 2 0 0
Meter Seria
0:
7/01/2001
:# U9990010040
"Gallons of Water Per Day" USAGE X 7,5 " (Gal. Per Otr,) divided by 90 days"
WATER - Res
Mi see '1'1 ElneOLJS
Current Charges
'183050
') 83050
H
10.00
10.00
AMOUNT DUE NOW
..---.l9 . 0 q.~_ ,.
Water Availability charges have increase
ISA & MASTERCARD are now accepted for u
payment is also available. If you are i
options, please call 271-3203.
THIS STATEMENT REFLECTS PAY0ENTS.~..~ 7/24/200 1
to $24.
ility payments. Electronic
terested in any of these payment
BILLING INQUIRIES CALL (763) 295-2711
.
.
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HRA Agenda - 8/1/01
11.
Executive Director's Reoort:
a) Quik TIF Reports - The annual rep rts are due at the State Auditor's Office on
August I. Almost done. A balanc sheet has been added to the report and a few
other changes. Good checks and b lance between Rick, L and City Auditors.
Summarized version printed in the Monticello Times, August 9, by law.
b) Semi-annual 2001 pay-as-you-go ayments due August 1,2001 - For your
information, copy of the checks m iled.
c) Tax increment for July 2001 the H A received per district. Raindance, Lake
Tool, and Aroplax were latc on pa ment so no increment. All three are now paid
in full.
d) Aroplax - Last month I reported I' check with Aroplax relative to the latc
payment of the TIF Deficiency. T e 2001 deficiency was paid and Paul Schoen
requested the HRA considcr not re uesting the payment in 2002. I believe 2002
would be their last payment. As y u rccall, the HRA just decertified the district.
Whcn I finish the Quik TIF Report., I will bring it back to the HRA for a
decision, if no shortfall exists.
e) MCC - Although, Murray is a repr sentative on the Community Center Advisory
Board, the attached is the second q arter 2001 report as presented by Kitty to the
Council on July 23.
t) EDMA Company - SBA application submittcd for approval. EDA loan approved
for $30,000. No TIF. 10,000 sq. t, north of Lake Tool.
g) Production Stamping on hold. Ne d to check about Red Wing Foods.
h) Good 60,000 sq ft industrial lead f om Olson General Contractors. 50/50 chance
company will relocate from curren location.
i) Good lead for H-Window facility.
j) Marketing Committee met July 26. To call Lecy Design for meeting relative to
brochure update and costs. Decide, the IDC Luncheon not meeting it's
objective. Will write objective and plans for business rctcntion and expansion
visits by IDC beginning October. I ecided MOAA decisions long-way ofl. Will
get update from Chamber on Fall anquet date and speaker at August I DC
meeti ng.
k) On vacation August 7 through 14.
.
.
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INFORMATION COMPLIMEN'
SALARY VERSES SALES PR
HOURLY ANNUAL CLOSING MAXIMU
WAGE WAGE COSTS DEBT
$9.00 $18,720 $4,800 $125.00
$10.00 $20,800 $5,300 $138.00
$11.00 $22,880 $5,700 $152~00
$12.00 $24,960 $6,200 $166.42
$13.00 $27,040 $6,700 $180.30
.
1) Assumes annual real estate taxes of 1,500 annually and homeowners insurance
2) Based on 5% down, conventional fi ancing at 7%, 30 year
3) Qualifying housing ratio of 28% of ross monthly income. Maximum debt is b.
'S OF: COMMUNITY LENDERS LLC
.
I_CE COMPARISON WORKSHEET
---1______
M
I HOURLY ANNUAL SALES CLOSING MAXIMUM PITI
WAGE WAGE PRICE COSTS DEBT
I 9.00_J 37,440 $103,500 $9,100 $249.62 $873.58
I - $10.00 $41,600 $117,550 $10,000 $277.36 $970.64
1--$11.00 $41,600 $131,550 $11,000 $304.96 $1,067.74
r- $12.00 $49,920 $145,500 $12,000 $332.81 $1,164.79
r--$13.00 $54,080 $159,500 $13,000 $360.56 $1,261.84
.
of $360
sed on 36% of gross monthly income
, , <<I
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Front Porch Associates, Ltd. - Michael Cyr
722 West 5th Street
Monticello, Minnesota 55362
Phone: 763.295.0717 Fax: 763.295.3227
1 August 2001
HRA Board
NlonticeUo City Council
505 Walnut Street South
Monticello, Minnesota, 55362
Re: 1. Request for Concept Approval for Redeve opment and Construction
2. Request for Funding Approval for Redevelopment and Construction
Project:
West Village Commons
Market rate townhome development 0 6th Street West at Vine Street.
Greetings,
1. We have a purchase option on 1WD lots on 6th St ~et west of Minnesota.
2. We have a purchase option on a blighted home n the east side of t~~se two lots.
.. There is an unused city street right of way that I uld hope to purchase, at least half of it.
W1ave discussed this with Mr. WOlfstellar, who has i dicated that it may be a possibility.
4. With the above three properties we would build twinhomes, 6 market rate dwellings with a
sales price of $150K - $170K.
5. My question: Would the board spend up to $10 K for the purchase and demolition of the
blighted home. The purchase price is $120K and I uld expect to spend between $5K and $10K
for demolition and cleanup. I need to act in the ne 60 days on the option on the home.
.
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ML Building & Remodeling
Design. Construction. Project Management
Residential. Commercial
MN Lic. # 20054618
Ph: 76 .295.0717 Fax: 763.295.3227 Cell: 612.366.0717
722 West 5th Street
Monticello, Minnesota 55362
1 August 2001
HRA Board
Monticello City Council
505 Walnut Street South
Monticello, Minnesota, 55362
Re: Project Summary
Projects:
1. Office Building for
Investor Group - Developer
207 Walnut Street South
2. Shared Parking Development - BI ck 36
Interior of Block 36
. Building
Have developed two options:
1. The two story building, 4500 square feet per flo r that was presented last time
2. A one story building with about 4500 square fe .
One story building
Total Project Cost
$650K - $700K
$950K - $1 M
Investor Return
-9.27%
Two story building
9.46%
Shared Parking
This develops parking in the interior of the block to be shared by all of the commercial
businesses and upstairs residential tenants of com ercial buildings.
Total Project Cost
$140K
Investor Return
None
Note: The other $45K is assumed to be coming fr m the HRA funds already committed to
.parking development as part of the Amoco site proj' ct.
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MLC Building & Remodeling
Design - Construction - Project Management
Residential - Commercial
MN Lie. # 20054618
Ph: 763. 95.0717 Fax: 763.295.3227 Cell: 612.366.0717
722 West 5th Street
Monticello, Minnesota 55362
1 August 2001
HRA Board
Monticello City Council
505 Walnut Street South
Monticello, Minnesota, 55362
Re: 1. Request for Funding Approval for Redev lopment and Construction
2. Request for Funding Approval for Shared Parking Development - Block 36
Projects:
1. Office Building for
Investor Group. Developer
207 Walnut Street South
2. Shared Parking Development - BI ck 36
Interior of Block 36
.reetings,
Building
Have developed two scenarios:
1. The two story building, 4500 square feet per f100 that we discussed last time
2. A one story building with about 4500 square feet
Due to the extra costs involved in redeveloping a pr perty, the developer is seeking T.I.F.
assistance to cover eligible costs. Those costs incl de but may not be limited to:
Utility right of way relocation
Cost of temporary quarters for the current oc pants of one of the existing buildings
Cost of moving occupants to temporary quart rs
Perimeter fencing of construction site
Excavation and removal of basements and ot er below grade obstacles to construction
Relocation I upgrading of hookups to City of onticello services
Curb and sidewalk reconstruction adjacent to Walnut Street
Patch and repair work on Walnut Street right of way
Curb, sidewalk, concrete, paving and lands ping construction
Interim financing costs
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~hared Parking
.0 address parking availability on Block 36, MLC pr poses to develop shared parking areas
within the interior of Block 36. The objective is to 0 tain cross property easements,
construction easements and a long-term maintenan e agreement amongst the affected
property owners. These agreements would allow d molition, grading, paving and landscaping
of the affected properties to allow construction of pa king that will be shared by all of the
participating property owners.
To achieve this objective, MLC has discussed the is ue with all of the existing and potential
property owners on the north half of Block 36. Atta ed to this document is a letter of intent
drafted by Smith, Paulson, O'Donnell & Associates nd signed by all of the affected property
owners. This is attached as Exhibit E. One of the p operty owners, John Koppy, owns a
storage building that is situated next to the back pro erty line of his lot. This building will
obstruct Project 2 if not removed. Mr. Koppy has va ued this building at $50,000.00. This
amount will compensate him for constructing a new uilding of similar size, loss of rental
income from a tenant that currently leases part of th building, and the costs of relocating the
property that is currently stored in the building. ML has an option to purchase and remove
the building contingent on HRA approval of funding or Project 2. The option document is
included and is identified as Exhibit F.
The area affected by Project 2 is from the West pro erty lines of Project 1 and the area
immediately adjacent to Project 1 on its North boun ary, westerly to the East property lines of
_he project currently known as Amoco Away. Parkin within the boundaries of the Project 1
wand Amoco Away projects is addressed within the s pe of those projects.
In exchange for the cross property easements and t e construction easements, the owners of
the affected property are requesting 100% coverag of costs for the development of the
shared parking through T.I.F. and City of Monticello parking development funds. The affected
owners will form an association to take care of main enance once the project has been
completed. MLC will administer the project but will eed to be paid in full for all costs
associated with the shared parking work. Those co ts include but may not be limited to:
Building acquisition and demolition or remov I (Koppy storage building)
Utility right of way relocation if needed
Relocation of City of Monticello utility service if needed
Curb and sidewalk construction
Patch and repair work on city or county right f ways
Curb, sidewalk, concrete, paving and lands ping construction
Construction financing and carrying costs
Builder Overhead and Profit
Sincerely,
a,ichael Cyr
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