HRA Agenda 03-07-2001
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AGEN A
MONTICELLO HOUSING AND RE EVELOPMENT AUTHORITY
Wednesday, March 7 2001 - 7:00 p.m.
505 Walnut Street Bridge Room
MEMBERS: Chair Darrin Lahr, Vice Chair Dan rie, Brad Barger, Steve Andrews, and Bob
Murray.
COUNCIL LIAISON: Brian Stumpf
OFFICERS: Treasurer Rick Wolfsteller, Executi e Director Ollie Koropchak, and Recorder
Lori Kraemer.
GUESTS: Brad Johnson, Lotus Realty Service /Barry Fluth, Masters Fifth Avenue, Inc.
Sheri Harris, Central Minnesota Ho sing Partnership, Inc.
Steve Budd, Intergrated Recycling echnologies, Inc.
Gene Chase, Consultant for Red Wi. g Foods, Inc.
Tom Feaski, Tricon, Inc., Builder
Mark Ruff, Ehlers & Assoc.
1. Call to Order.
2.
Consideration to approve the HRA minutes fFebruary 7, 2001.
3. Consideration to add or remove items from he agenda.
4. Consent Agenda.
5. Continued - Consideration to hear progress elative to research of purpose/objective and
funding for a scattered housing program, ex lanation of MHF A funding, and authorization
to enter into the Preliminary Developmentgreement.
6. Continued - Consideration to extend the effi ctive date of the Preliminary Development
Agreement with Masters Fifth Avenue, Inc. ' r to solicit other developers.
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7. Consideration to hear a presentation for use! f TIP assistance for an industrial facility and
authorization to enter into the Preliminary d velopment Agreement. Steve Budd,
Integrated Recycling Technologies, Inc., Ap licant.
8. Consideration to hear a presentation for use fTIF assistance for a packaging/roasting
facility plus industrial space for lease and auhorization to enter into the Preliminary
Development Agreement. Gene Chase, Red Wing Foods, Inc., Applicant.
9.
Consideration of update and action relative t TIF District 1-22 North Anchor.
10. Consideration to discuss industrial land acqu sition options and to develop an action plan
to address the shsort and long term need for industrial land including acquisition ofland.
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12.
Consideration to authorize payment of the ontWy HRA bills.
Consideration of Executive Director's Repo
13. Committee Reports: MCP - Steve Andrews.
14. Other Business.
15. Adjournment.
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MINU ES
MONTICELLO HOlJSING AND R DEYELOPMENT AUTHORITY
Wednesday, February 7,2001 - 7:00 p.m.
505 Walnut Street - Bridge Room
Members Present:
Chair Darrin Lahr. Vice Ch< ir Dan Frie. Brad Barger. and Steve Andrews
Absent:
Bob Murray and Council Li lison Brian Stumpf
Officers:
Trcasurcr Rick Wolfsteller, ,'xecutivc Director Ollie Koropchak. Deputy
City Administrator Jeff O'Neill and Recorder Lori Kraemer.
1. Call to Order. Chair Darrin Lahr called the mccting to order at 7 pm,
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2.
A MOTION WAS MADE BY BRAD BA GER AND SECONDED BY STEVE
ANDREWS TO APPROVE THE MINUT S OF THE REGULAR HRA MEETING OF
JANUAR Y 3. 2001. Motion carried 3 to o with Dan Frie not yet present.
Consideration of addin!! or removino a!!en a items from the consent aoenda. None
Consent Aaenda.
Consideration to address items added or reI loved from the consent a 'enda. N/A.
Consideration to hear u date and to consid I' extendino the effective date of the
Prcliminarv Develo ment Aoreement bctw en Masters Fifth Avenue Inc. and the I--IRA.
Ollie Koropchak, Executive Director. provi cd her report regarding the agreement the
HRA and Barry Fluth entered into on AUgl st 2. 2000. a ] 20-day exclusive right
agreement. which was effective through December 2. 2000. At a prior meeting another
developer presented a rehab plan for an ower/occupied project on the Amoco site. The
HRA elected to enter into the preliminary a freement with F1uth based on the concept
presented.
On December 6,2000, the HRA extended t e effective date of the Preliminary
Development Agreement to February 6, 20 ]. Brad Johnson asked to update the l1RA on
their process and based on the update, the RA would need to consider whether to extend
the effective date or to seek other interested developers. Mr. Johnson was not able to
attend the meeting.
Koropchak asked the HRA to consider que tions for Johnson such as if he has purchase
options on any of the properties, has he tal ed to effective property owner. and what role
can the HRA play to expedite the process 0 to fill the gap?
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HRA Minutes - 02/07/0 I
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Koropchak was contacted by another local developer \\"ho has been requested to prepare
proposals for redevelopment of a couple of lots along Walnut Street and abutting Brad's
concepts. Although interested in the idea of a community parking lot. he prefers this
project to be a stand alone. This developer is also interested in TIF assistance.
At this point. the rIM financial consultants have not been asked to run TIF cashllow
numbers. Pending on the TlF cashflow numbcrs. the level ofTIF assistance will be
determined and the financial method determined (pay-as-you-go or up front), keeping in
mind the four and five year rules and a target date fl.)r demolition of the Amoco site. no
later than June 30, 2001. The effective date of the preliminary agreement means
concepts. plans, and level ofTIF assistance arc in place for execution of the Contract for
Private Redevelopment.
Johnson advised Koropchak that he does have a restaurant interested in 3,000 to 4.000 sq.
1'1. He also has a concern with the City's requests for parking. Johnson advised that he
was looking for a preliminary agreement regarding parking, getting together with the
property owners adjoining this property as a joint parking venture.
O'Neill states as long as the developer conforms to the ordinance it is not a planning
issue until site plan is submitted. Costs would be the issue. O'Neill also stated that the
City can't determine amount of parking until they know exactly what the developer wants .
to build. Johnson is looking for the City to pay for the parking lot and having the HRA
help in acquiring the parcels. O'Neill states the City can provide at least half of the
parking lot if Johnson would pay the $1 AOO per parking stall. O'Neill states the HRA
should set up a list of items that Brad would have to answer by the next meeting before
the HRA can makc a decision.
The members stated that they need Brad Johnson to tell them what he wants to do and
submit a site plan and parking. and to let the I-IRA know what Johnson needs from them
to make this project happen.
A MOTION WAS MADE BY STEVE ANDREWS AND SECONDED BY DAN FRIE
TO EXTEND THE EFFECTIVE DATE FOR 30 DA YS. IF NO PLAN IS SUBMITTED
A T END OF 30 DA YS. THE HRA OPENS IT UP TO ANOTHER DEVELOPER.
Motion carried unanimously.
7. Consideration of update and action relative to TIF District 1-22. North Anchor.
7a). Consideration of update relative to execution of the Purchase and Lease
AQreement between the HRA and the Carlson's.
Koropchak provided her report stating at the January HRA meeting. the commissioners
reviewed the prepared Purchase Agreement outlining the HRA's counter-offer 01'$275,000
and acceptance letter from the Carlson's attorney. In January, the lIRA also approved the
Lease Agreement. The agreements were forwarded to the Carlson's by their Attorney.
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HRA Minutes 2/07/01
Koropchak noted that Mr. Carlson had app rent]y contacted Ken Helvey stating he would
not be signing the agreement as he was up,et over the relocation benefits. Koropchak
reminded the members that Mr. Helvey ini ially contactl:d the Carlson's relative to their
relocation rights and benefits and asked to neet: howewr. the Carlson's elected not to
meet. Mr. Helvey called the Carlson's attorney on January 26 for an update. As of
January 30, he had not heard from the attoIlley.
Koropchak stated that based on the lIRA's motion to hold offviith the appraisal of the
raw land of the Carlson propel1y by Rod O'agsten until execution of the Purchase
Agreement by the Carlson's. the appraisal as not been ordered.
Koropchak received information from Atto ney Greensweig on Tuesday which she
provided to the members regarding request by the Carlson's for revisions to the purchase
agreement. The HRA members discussed ach item and determined their response,
advising Koropchak to make the changes a 1d present back to Attorney Greensweig.
A MOTION WAS MADE BY STEVE ANDREWS AND SECONDED BY DAN FRIE
TO ACCEPT TilE PURCHASE AND LE SE AGREEMENTS WITH THE NOTED
CHANGES:
Purchase Agreement change: closing date from A pri I I, 2000 to Apri I 1, 2001.
Lease Agreement changes: term of lea e July 31,2002:
Paragraph 9: replace "in any event" t "ifdue to gross negligence of the City".
Paragraph 12: do not delete "01' perlll t any other pel's to use the house", but can add
"landlords consent shall not be unreas nably withheld",
AND TO AUTHORIZE THE CHAIR AN EXECUTIVE DIRECTOR THE RIGHT TO
NEGOTIATE OTHER MINOR CHANGE AND EXECUTE DOCUMENTS. Motion
carried unanimously.
7b) Update on Bostic and O'Connor.
O'Connor - Mr. Helvey was informed ofth HRA's January 2001 motion: A counter-
offer in the amount of $130.352 package d al to Mike O'Connor, possession date not
later than April 15.2001 and to extend the ull and void date to two weeks from date
counter-oiler presented. Counter-offer pre ented after execution of Purchase Agreement
by the Carlson's. HRA noted acquisition ffer based on one of the highest offer by
percentage. Koropchak advised that Mr. 0 Connor had called Mr. Helvey to ask what's
going on. Mr. Helvey has not proceeded p r the HRA's direction.
Bostic - Mr. Helvey was informed of the H 's January 2001 motion: A counter-offer in
the amount of $1 09.400 package deal plus enalty to the Bostic, possession date not later
than April 15.2001. and to extend the null nd void date to two weeks from date counter-
offer presented. Counter-offer presented a tel' execution of Purchase Agreement by the
Carlson's. Wolfsteller has estimated the p e-payment penalty at about $2.834.
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HRA Minutes 2/07/0]
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7c).
Hans Hauen Undate.
Koropchak provided a copy of an e-mail to and from 1-1ans IIagen. as well as provided
estimates for improvements along Front Street. It \\as discussed whether the City would
be installing the stubs on the sanitary sewer line at that same time - City is still
discussing. Wolfsteller stated they had discussed assessment policies last fall but no
decisions at this time. Iloping to not have to assess for streets. did not talk a lot about
utility replacements and still gathering information from other cities. Wolfsteller noted
that in the next month he \vmild like to see the Council come up with some direction.
noting that the I--:lRA would have to approach the Council and petition for a feasibility
study - a 90 day process.
Members asked if it would be most cost effective to have the same contractor put in the
approximately 10 stubs at the same time. If the City is to replace the line, payment for
services may be directed to the developer or the HRA at that time.
No action necessary at this time.
7d). Consideration to authorize Desiun Concept Drawin!!s for Block 52.
Koropchak noted that as we appear to have some interested developers for Block 52 and .
perhaps the same developer may not develop the entire designated area. it is very
important that a concept be developed that maximizes the goals of the liRA and the
Revitalization Plan while meeting the demands of the market. The concept would
include housing. office. commercial. and/or restaurant options. The preliminary design
concept drawings would consider necessary parking. landscaping. street development.
and its relationship to the other areas of the downtown/riverfront.
Koropchak stated that although one developer approached her for lot sizes to do some
preliminary drawings, she thinks it's in the J-IRA's best interest to have our City Planner
Consultant prepare the drawings. This to avoid misleading anyone developer and keeps
the window open for the HRA as to their choice of developers and concepts. The cost of
the concepts would come from TIF District No. I -22. This will help to keep us on track
for the June 30. 2002 date.
An area/property the members discussed included the Froslie property. as well as there
being room for housing back on River Street. Koropchak states that it is encouraged to
have drawings, etc. of these areas and to keep them updated noting what options they
would like to see done. Darrin asked if it was up to the developer's to do the drawings,
and possibly the HRA should do an RFP. Brad thought perhaps land should be purchased
first before going out for RFP's. Another item that was advised to Koropchak was to
have pictures available and keep property owners involved. Darrin stated perhaps we
should talk to the property owners first before doing any drawings.
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O"Neill advised that perhaps the City could define square footages. parking. things the
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I-IRA Minutes - 2/07/0 I
City \vould like to see done in certain areas. It \\as asked if there are any interested
developers at this time and KoropchQk stat d that there is at least one. as well as Brad
Johnson. Perhaps the HRA would like to I ave Steve Grittman advise where a good
parking area \vould be in the City and \vor the plan backwards. Steve Andre\\s stated
that the Mep has a plan that is somewhQt I ke what the I-IRA members were discussing.
Barger asked about some concepts that had been submitted previously that perhaps the
City could look back at.
Koropchak asked if the members were con mitted to expending the TlF dollars by 2002?
Dan Frie felt that the HRA should define aeas in the City and go out for RFP's. if this is
what has to be done by July of 2001. O'N ill again stated we should find out what the
City would do for parking. Perhaps vacati, g that pat1 of River Street and using part of
the park is another option regarding parkin . Koropchak states that the demand for the
market is what is going to drive the project Barger stated the developer would know this
as well. Dan Frie asked if the RFP could b done just in concept. then forward it on to
the Parks Commission and City Council. he members felt that they should first talk to
the property owners.
A MOTION WAS MADE BY DAN FRIE . ND SECONDED BY STEVE ANDREWS
TO BEGIN DISCUSSIONS WITH PROP RTY OWNERS AND DRA W UP A DRA.FT
REQUEST FOR PROPOSAL. Motion Cal 'ied unanimously.
Continued - Consideration to hear ro!!ress relative to research of
fundino for a scattered housin' ro 'ram an a motion to a
use of TIf assistance.
8.
Koropchak provided the report stating staff and the HRA targeted sites within the older
part of Monticello for the proposed scattere housing program for the purpose of
replacing the current housing stock with hi her valued homes. Previously. the area of 61h
and Minnesota was identified as a sub stand rd area; however. the area does not qualify
for a redevelopment district because 70% 0 the parcels did not contain at least 15%
improvements per parcel.
As we began to work with Sheri Harris at tl e Central Minnesota Housing Partnership,
Inc. (CMHP) for possible funding options t 1rough the Minnesota Housing finance
Agency (MHfA) and with the funding appl cation submission deadline offebruary 9,
2001. the area of61h and Minnesota Street as targeted because ofa preliminary concept
and an interested builder. As it turns out tl at particular builder is not interested;
however. he would sell his vacant parcel.
Sheri HarTis was unable to attend the meeti g due to the weather. Jeff C)"Neill provided
some information from a meeting he recently attend with Koropchak and Harris, advising
that to make the numbers work for this proj ct without the CMHP's grant money, the
density would have to be increased.
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HRA Minutes. 2/07/01
Koropchak advised that the J--lRA is asked to consider T1F funds to go toward this
development. Goal is not to replace blight with junk. The proposed project is to build
I ] 00 sq ft structures with 2 car garages \vhich would possibly sell for approximately
$1 ] 5.000. which is considered affordable housing. Money is coming from MHF A. Sheri
would complete the grant application and be the agent purchasing the properties.
Community revitalization fund is what the HRA would be looking at for affordable single
family housing. equal to or less than 80% of states median income. Funding being
applied for is $500.000 - 0% interest loan. Time line for expenditure of funds is 20
months from the time program documents are executed. The City Council waived permit
& WAC/SAC fees. It was noted that there would be 9 houses on Minnesota Street and
one on 6th Street. In order to fill the gap. the HRA is requested to create a TIF district.
Koropchak states they can only get this project going with upfront financing. Koropchak
also advised that the HRA consider waiving the $5,000 deposit fee as this is a non-profit
organization. Lahr asked what would be the investment per unit from the City.
As there were some questions that could not be answered. the HRA would like to get
clarification from Harris before making a motion.
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A MOTION WAS MADE BY BRAD BARGER AND SECONDED BY DAN FRIE TO
TABLE ANY ACTION UNTIL THE MARCH MEETING. WITH NO
ENDORSEMENT AT THIS TIME. Motion carried unanimously. .
9. Consideration of a request from Soringsted. Inc. to make a presentation to the I~RA.
Koropchak reported that she had met with Paul Stcinmcn and a co-worker of Springsted,
Inc.. and reminded the members that some years ago the company served as the City.s
financial consultants and thereafter. the City joined with the HRA in use of Ehler.s &
Associates. About a year ago I requested consultant fees from three firms. one being
Springsted. The HRA elected to stay with Ehler's because of the value of knowing the
City and HRA's history. hearing no expressed dissatisfaction and comparative fees.
Springsted. Inc. has gone through some changes and have a new focus. they request an
opportunity to market themselves to the HRA. The members advised Koropchak to
invite Springsted to the March meeting.
] O. Consideration to review for input and approval the 200] Economic Development Work
Plan.
Koropchak provided a copy of the first draft of goals of the 200] Economic Development
Work Plan. The EDA provided input on January 30 and the Marketing Committee
reviewcd it on February 2. 200]. Korpochak stated she would be evaluating the merits of
the downtown revitalization plan for the next EDA meeting. also stating that they may
also like to add to the goals that the Planning Commission look at the Comprehensive
Plan again regarding annexation.
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HRA Minutes - 2/07/01
Koropchak asked the members what they hought about the possibility of making the
Industrial Development Committee an ad\ isory committee and Darrin Lahr stated he was
not in favor of this as people complain air ady that there are too many committees.
Koropchak advised that she would like to'csearch further. also noting the possibility of
combining the HRA \vith EDA and would do some comparisons for pros and cons.
Koropchak asked the members for their fe'dback.
Dan Frie advised that he would like to mo 'C up the time frame for Gold Nugget to pursue
this as industrial land. Brad Barger added information from the Marketing Committee
stating their desire to purchase property tt. r industrial use.
The members stated they would like to di cuss the Gold Nugget parcel in greater detail at
the March meeting.
11. Consideration to authorize avment of the 1110nthlv HRA bills.
A MOTION WAS MADE BY DAN FRI. AND SECONDED BY STEVE ANDREWS
TO AUTHORIZE PAYMENT OF TI-IE ONTHL Y HRA BILLS. Motion carried
unanimously.
12.
Consideration of Executive Director's Rc
Koropchak provided a report on the folio 'ing:
a) GMEF No. 010 (Vector Tool) - The m difications to the Loan Agreement and other
documents were drafted and executed by Ippropriate individuals at the closings on
November 29. 2000.
b) GMEF No. 017 (Twin City Die Castin's) - Invoice for costs associated with UCC
filing on equipment. LJCC not filed.
c) EDA Annual Meeting is scheduled for April 24.2001 * attached a copy of minutes
1'1'0111 a budget workshop of the city coun il on November 16. 2000. Relative to the
DMRF - will research a few parcels whi h received DMRFs for a comparison of
increased market val ue over the years to ,ce if the EDA investment is paying off.
d) Integrated Recycling Technologies. In . - The Prospect Team visited this Rogers
company. They are a auto catalyst refine with 3 FT and 2 PT employees. He's looking
to perhaps build a 10.000 sq ft metal buil ing on a 2-acre parcel along Fallon A venue.
He would add an additional 3-4 FT work rs within 2 years. Wages between $35,000 to
$50,000 annually w/o benefits. Looking or funding.
c) Barger/Harwood - Looking to constru t another 15.000 sq ft metal building behind
Vcctor Tool. This resulted after C. H. lit It Company called my office for the need for
another 5.000 sq ft and B&B Metal Stam ing need for additional space. Space may also
accommodate a St. Cloud and Big Lake ompany.
f) Red Wing Foods - Met with Charlie P 'fTer. company. staff, and builder relative to
construction of a 50.000 sq ft precast bui ding on 6 acres ofland to the west of Twin City
Die Castings. Red Wing Foods would ta'e 20.000 sq ft and the remaining for lease. Red
HRA Minutes - 2/07/0J
Wing Foods is a packager and distributor of gourmet f()ods with contacts to Byerly's,
Lund's, Target etc. Price of land now $43,560 per acre. Plan to request TIF assistance.
g) Old St. Henry's site ~ Preliminary new concept for redevelopment of this site.
h) HRA housekeeping - Will notify St. Bens in March of need 1c)r evidence relative to
low/moderate income and rent levels for the qualified housing district. Next month will
present the estimated market values for payable 200 I on the Prairie West redevelopment
area. Plan to write an article in the city newsletter on the success of that and the River
Mill project as public/private partnerships. Mississippi Shores reported their annual
income and rental level report. Pay-as-you-go payments were mailed for February I,
2001. Attended the Ehler's TIF Seminar on February 1.
i) Legislator Alert - Relative to pre~1990 TIF districts. I've written in opposition of the
proposed file to League of Minnesota and our representatives.
j) Copy of letters to RDL Aroplax, and news articles.
k) Lake Tool - still have not received any money.
I) Info provided at the meeting regarding Wright Co Cities interest in doing countywide
housing plan, would be specific for the City of Monticello by the MHF A _ would cost
about $500 per City for a plan - which is broader projects with different resources for
affordable housing. The members stated no interest at this time.
13.
Committee Reports:
MCP - Steve Andrews - annual meeting was delayed, no set date at this time.
] 4. Other Business. None
15. Adiournment.
A MOTION WAS MADE BY DARRIN LAHR AND SECONDED BY STEVE
ANDREWS TO ADJOURN THE MEETING AT 9:45 P.M. Motion carried
unanimou~ly .
HRA Chair
Recorder
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Continued - Consideration to hear ro
and fundin for a scattered housin ro
authorization to enter into the Prelimina
A. Reference and backeround:
BRA Agenda - 3/7 lOt
At the lIRA meeting in February, the lIRA as requested to adopt of resolution
supporting the use of TIF and the prelimina scattered housing concept for the purpose
of the Community Revitalization Fund Grant application due February 9, 2001. Due to
inclement weather, Sheri Harris was unable t attend the February HRA meeting.
Although a sources and uses of funds analysi with TIF and without TIF was submitted,
the lIRA had questions of which staffwas u able to answer. The lIRA elected not to
indorse the use of TIF at this time and tabled any action to the March meeting.
The Monticello grant application was submit ed for the February 9, 2001 deadline with the
use ofTIF pending. Sheri has a meeting wit O'Neill, Wolfsteller, and Koropchak at 3:30
p.m. on the 7th of March. Sheri will be at th lIRA meeting to answer your questions and
to update you on status of the award proces . After which, the lIRA should compare the
TIF application against the TIF policies prio to considering the preliminary approval for
use of TIF and authorization to enter into th Preliminary Development Agreement. As
suggested previously, it is recommended tha the $5,000 deposit be waived as the
applicant is a non-profit housing agency.
· Clarification of how MHF A funding orks - Sheri Harris
· Comments from Mark Ruff
· Compare project and TIF policies an TIF Cashflows
PROJECT: 10 single family housing units. 9 homes on Minnesota Street and 1 home on 6
Street, 1,060 sq ft ofliving space, double ga age, lots 36 ft wide, home 24 ft wide, vinyl
siding, some brick and porch in front.
Selling price - $120,000. $115,000 plus $3, 00 closing costs and $2,000 packaging fee.
Annual targeted income level, $28,000 to $3 ,000.
HOUSING TIF PURPOSE: To provide affo dable housing to meet the job growth needs
of the community.
TIF USE: Assist with acquisition and demoli ion costs.
FINANCE METHOD: Request up-front. hat is the security?
Private Redevelopment Contract with MHF .
AMOUNT OF TIF ASSISTANCE: $125,00 NPV
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BRA Agenda - 3/7/01
If the lIRA finds the proposed housing proj ct and finance structure is compatible with the
TIF policies, consider the below alternative ctions. If you approve the preliminary
concept for use of TIF, then the preliminary concept will be presented to the City Council
on March 12, 2001. Although the BRA is equested to authorize entering into the
Preliminary Development Agreement, the e ecution of the Agreement will take place only
if the grant is awarded and purchase agree ents executed. Remember, the MHFA funds
must be expended 20 months from the date the MHF A documents are executed.
B. Alternative Action:
1. A motion to approve the prelimin concept for use of TIF for the scattered
housing project and to authorize en ering into the Preliminary Development
Agreement. _ Waive the $5, 00 deposit. _ Do not waive the $5,000
deposit.
2. A motion to deny the approval oft e preliminary concept for use ofTIF for the
scattered housing project.
3. A motion to table any action.
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c.
Recommendation:
With the question "Does it make more sen e for the City of Monticello to finance the
gap?" unanswered, no recommendation is iven. Security is a must for the up-front
financing. What if the property taxes paid by the home owners becomes delinquent?
D. Supportine Data:
Copy of uses and sources of funds from S eri, copy of design concept, and TIF cashflows
(may be presented at meeting).
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FEB-07-01 11:22 AM CENTRAL MN HOUSING PTNSP 1 320 259 9590
P.02
. ACQuisition/Demolition
5 Properties
Environmental Assessment it $96 ea.
Legal at $500 ea.
Title Insuranee
Filing Fees
Demolition
Platting & abstracts
Site Preparation
Permits & Fees
Real Estate Taxes
Insurance
Subtotal
New Construction (9 homes)
Subtotal
Total COlt for Acq./New Construction
Permlta waived (city contribution)
TIF
Total cost of Development
Sales Price of 9 homeS(115,OOO)
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With Tax Increment inanclng
Total cost
300,000
1QO
2,500
1,'50
750
20,000
8,000
87.500
42,750
2.750
2.500
448,610
758,000
761,000
$1,202,680
$42,710
1125.000
1,O~4,Sl"O
1,035,000
Sources MHFA City HRA Total
Acquisition/Demolition 321,890 125.000 448,890
Construction $178,310 42,750 221.080
Home Sales/Contractor $535,000
$1,035,000 ~,Q
\A- ""-'" Q ^ " ...... \\<;,tlOb
1>. It · ..
L\O<' ,'",,0.;..- ';l. . "" 1l
".....J\.. "'lo ~
28,000 Income.. $13 per hour \?-S. 000
Mortgage 88,000 '4J_f\SO
GMHF 15000 !~
HAF 1 .1Jiii q I b
Total Source. 111.899 JF I ~)' C; 0
30,000 Incom' -14.60 p.r hour
Mortgage 95.000
GMHF 15000
. l-IAF 14999
Total Source. 124,899
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FEB-07-01 11:22 RM CENTRRL MN HOUSING PTNSP 1 320 2S9 9S90
P.03
Without Tax Incremet Financing
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Acaulaltlon/Oemolltlon
5 propen.ies
Environmental Assessment at $95 ea.
Legal at $500 ea.
Title Insurance
Filing Fees
Demolition
Platting & abstracts
Site Preparation
Permits & Fees
Real Estate Taxes
Insurance
Subtotal
New Construction (9 homes)
Subtotal
Total Coat for Ac:q./New Construction
Permits waived (city contribution)
Total cost of Development
Sales Prlce of Q homes(129.000)
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source.
Acquisition/Oemolition
Construction
Home Sales/Contractor
Home Price
Closing Costs
Packaging Fee
Total Price
28,000 Income. $13 plr hOLlr
Mortgage
GMHF
HAF
Total SOLlrces
30,000 Income.. U.50 per hour
Mortgage
GMHF
HAF
Towl Sources
.
1,161940
1,181,00
MHFA City
44&.8~O
$53, 10 42,750
56S9, 40
$1,169140
12 ,000
,000
00
13, ,000
8 .000
15000
49
11 ,999
HFtA Total
446.890
98,060
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HOUSING ISTRICT
MIIF,
Parccls - For taxes payable 2001
155-010-009030 EMY $33,700 TC $337 Land $19,000 Improvements $14,700
155-010~009040 EMY $38JWO TC $388
155-0 I 0-009050 EMY $56.100 TC $561
155-0 10-009060 EMY $17.1 00 TC $171
155-010-009061 EMY $44,400 Te $444
$19JlOO Improvements $14,800
$19.000 Improvements $37.1 00
1 7,! 00
20,300 Improvements $24.100
Redevelop fl.)!' construction of 10 single f~ltl1i1y OWl er-occupied homes with attached garage.
Selling Price $115.000
Construction costs $ 4.000
EMY $95,000
Proposed as a Housing District
MARK, PLEASI': RUN TIF CASH FLOW
Preliminary TI F assistance offer - $125,000 NPY
Give your recommendation it)r HRA.
MHFA wants for upfront financing? What is the IRA's long term security?
Other ideas.
5G
.
.
.
BRA Agenda - 317/01
6.
Continued - Consideration to hear an u
redevelo ment of the Amoco site and aut
of project area.
A. Reference and backeround:
At the HRA meeting in February, the commi sioners extended the effective date of the
Preliminary Development Agreement to Mar h 7, 2001. Ifno plan and TIF direction
within 30 days, the HRA will open the site u to other developers. The HRA is looking
for: This is the redevelopment project area pI , we need this from the HRA to fill the
gap. The parking stall issue is not the role 0 the HRA.
Met with Brad and Bar 3/2/09 - 12:30
Plans for Phase I:
Includes acquisition of Amoco site (A) and b ck-half of sites (E, F, G.)
Estimated costs to acquire and demolition Sit A $210,000
Estimated costs to acquire E,F,G. $41,000. ( as not talked to property owers)
Will construct 5,700 sq ft first story of which restaurant will occupy 3,500 sq ft.
Second floor 6 apartments.
One carriage unit with 6 garage stalls.
Request: By their estimates they are requesti g $146,900 TIF generated by Amoco site
project and $110,000 additional gap from . They desire the HRA acquire and
demolish the Amoco site (they negotiate) unt I such time they obtain a mortgage from the
bank. Question: What BRA's security or uarantee of develop?
Additionally: In order for this site to work ith a restaurant, the sites A, E, F, G can
accommodate 51 parking stalls. The require amount parking stalls for the restaurant only
according to the city ordinance per the devel per is 75. Leaving a balance of24
additional stalls. This without other retail. uestion: What about street parking?
Additionally, they are requesting from the cit $24,000 for parking and $45,000 for
WAC/SAC fees in order for the project to w rk?
At this point I have not confirmed TIF Cashfl w numbers? Will provide at meeting.
Phase II later in 2001 or 2002.
Mar 02 01 10:44a
Lotus Realt~ Services,Inc (952J934-5472
p.2
.
R.~Of/l\""l: t> A"'" I
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A., #1,0 s,t"~
AMOCO AWAY P )OJECT
MONTICELLO, MN
DEVELOPMENT ALl ERNATIVE
03/0212001
~{ ~
PROFORMA J Alternate 1 PROFORMA Alternate 2
~e~~I~~~~Joo s.f. @ $15/s.f. ~f $-05,500.00- Ret~ iiioffice8125 s.t. @ $15Js.f~-- $~-12"f,875.00
.:Wapt. units 5700 s.f. tal $7.20/5.1. J $ 43.200.00 8 a . units 8125 s.f. @ $7.20/s.f. $ 58.500.00
~
-- - ,- .--- ---~ ---------:---.---
1 carriage units BOO S.t @ $7.20/5.1. $ 6.912.00 8 carnage units 1800 sJ. @$7.20/s.f. $ 21,600.00
TOTAL INCOME $ 135,612.00 I $ 201,975.00
Less vacancy 5% _ $ (6,780.60 Les: vacancy 5% $ (10,098.75)
-- TIF ANALYSIS-'---~---- .---~~
i $ 11,200.00 Re ail taxes @ $2:50/S.f. -~~0.312.09_
~:-~064.Q~._ Ap ~xes $50,000 x 10 x 2.4~1~_: L-E.~O.~
_ $ (3,408.00) Le~ s current base - $ (4,400.00)
$ 15.856.00JJIF AVAILAB~--- $ 29,352.00
J'
( frRAIClty provide parking for Restaurant required of site ~
Total Spots = 75 for Restaurant I' 1
3500 sq. feet of Restaurant I /
HRAlCity pay Restaurant SAClWAC $4,i:999 4C:; (\il l'l......
'=
NET INCOME
----
TIF/year
$
$
$
.____~ __ I $
TOTAL INCOME WITH TIF
Less TIF note - 9% 20 years
Less mortgage at 9% - 25 years
-
~ INCOME
.
SOURCES
~rtg~ge @ 80% of C<?st
Equity
TIF f;o.... 8_jJ
HRA GA~ FinanCing ~
TOTALSbuRCES
~onstruction costs: ,
Retailloffice 5700 s.1.-@ $100/5.1.
Apt. 5700 s.t. @ $90/sJ.
Caniage House
Total Constructioil -
Soft Costs @ 15%
TOTAL USES
---~--
TIF ANALYSIS
Retail taxes @ $2.50/sJ. x 5700
~axes $50.000 x 6 x 2.4 x 1.12
Less current base
TIF AVAILABLE
.
~
f"1<?
~ \ -
'.). L\
~
!$
'$
128,831.40 NE INCOME _______~~1,876.2~
15,864.00 TIF ~ear to yield 11 % return $ 26,693.00
144.695.40 " TO AL INCOME WITH TIF
(15,864.00) es TIF note - 9% 20 years
(104,280.00) .as mortgage at 9% - 25 years
24,551.40 1 E INCOME
$ 218,569.25
$ (26,693.00)
$ (159.917.00)
i~_ ~1,959.25_
o JRCES
$ 1 ,079,200.00 ~otgage @ 80% of cost $ 1,588,OOO~
$ 122,900.00 :qLity $ 148,000.00
$ 146,900.00 IF for Gap $ 249,000.00
$ 110,000.00 0 AL SOURCES $ 1.985.000.00
$ 1,459.000.00 - ~.
--,~-------------_._--- ..-------.-
_ _~____ US S _ __ _._____
$ 211,000.00 AccuisitionlDemo/Site prepA,E,F.G i $ 280,000.00
I ---
, --
Cor struction costs: _ _____.______
R tail/office 8125 s.f. @ $90/sJ.$ 738,000.00_
Apt. 9925 S.f: @ $75/s.f. $ 745.000.00
$ 570,000.00
$ 456.000.00
$ 60,000.00
$ 1,086,000.00
Tc tal Construction
$ 1,483,000.00
$ 162,000.00 So Costs @ 15%
$ 1,459,0'0(1)0 T0' AL USES
$ 222,000.00
$ 1,985,000.00
--~-
-.----- ,--,---
--~-------
Page 1
MONTICELLOAWAYP!<-l_XLSPl'c/".....
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Mar 02 01 10:44a
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REDEVELOPM T CONCEPT
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Lotus Realt~ Services,lnc [S52JS34-5472
AMOCO "AWAY" PROJECT
MONTICELLC). MN
ACQUISITION COSTS
SQUARE. EET
1633
1089
1089
1089
4900 )
ESTIMATED
COST
$ 160.000.00 $
~- 100,000.00 i $
. $ 100,000"00 , $
$ 100,000.00 $
$ 460,OOO.0t! $
COST/SQ.FT.
9.79
9.16
._-~
9.18
9.18
9.39
SileA
_-L
c
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TOTAL ACQUISITION
="""..
DEMOLITION
TOTAL
---- -~ -.
$
4900 $
10.00
30,000.00
490,000.00 $
ALTERNATE FOR PARKING
Site E
F
--cr--
TOTAL
--- ----
..---.-,.-'--
.~-_._---,-- -.-------,----.- -
272 $ 13,610.00 $ 5.00
. .---,-:-
272 $ 13,610.00 $ 5.00
-, -----'---
272 $ 13,610.00 $ 5.00
81-64 $ 40,830.00 $ 5.00
I
.,...-------~.- -,,--- -- ,---,-- ----.---.-.--'----.-.----
TOTAL WITH ALTERNATE 5717 $ 530.830.00 $ 9.28
f-- -'---
Total TIF All. 1
$224,341
.------ --
$125,000
$349,341
Amoco site
. ~ Housm~ site
Tota
,---
-'-'
Total TIF All. 2
.- '----.-- :::'.-
Amoco :tile
Housing site
Tota
~--,-_.-
-
$365,000
$341,000
$706,000
p.4
--
page 1
AWA YPR-2XLSAcquisition Costs
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Bedrooms
Bathrooms
Main Floor Area
Total f.irrished Floor Area
dio
Accessory Unit ~ Second Storey, Above Parking Tarage
Type V
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Lower Unit
Bedrooms 1
Bathrooms 1
Total Finished Floor Area 900SF
Upper Unit
Bedrooms 1
Bathrooms 1
Total Finished Floor Area 900SF
eo-F
Townho use - Three Storey Stacked Flat, E pandable
Type IV-D
~~.....::.......--==c-....::::=-------"---~~=_.__._.,_.". '--.--.------;--....--.-----,-----=J @ rfk..
.
.
.
BRA Agenda - 3/7/01
7.
Consideration to hear a resentation for
facili and authorization to enter into th
A. Reference and back2round:
Mr. Steve Budd, President, Integrated Recya ing Technologies, Inc., is requesting TIF
assistance for land write-down. The Prospec1 Team of Fred Patch, Mayor Belsaas, Kevin
Doty, Ron Hoglund, and myself visited the e isting plant in Rogers. Contractor Tom
Feaski, Tricon, Inc. was also present. The c mpany recycles platinum group metals from
spent auto catalyst. The owner recently pur hased a home in Monticello.
The company proposes to purchase 2 acres 0 1-1 property along Fallon Avenue to the
immediate north of Pipeline Supply. The 10, 00 sq ft steel structure consists of
production and office space. The company pans to create 5 new jobs for the City of
Monticello within two years. See attached age and job goals.
Based on the preliminary TIF estimates, the ount of estimated TIF assistance
recommended is $40,000 NPV over 9 years ( eimbursement) and the City makes the up-
front local match of $9,000 (estimated utility onnections). Remember, the TIF Cashflow
ran by Ehlers are done after execution of the reliminary Development Agreement and
$5,000 deposit.
Please review the proposed project against th TIF Criteria for compliance. Steve Budd
and Tom F easki will be present to answer que tions. If the HRA approves the preliminary
concept for the proposed project, the Council ill review the concept at their March 12
meeting. Please consider the following altern tives.
B. Alternative Action:
I . A motion authorize entering into the P eliminary Development Agreement subject
to council preliminary approval and au horizing preparation ofTIF District No. 1-
28.
2. A motion to deny authorization to ent into the Preliminary Development
Agreement for the following reasons.
3. A motion to table any action.
C. Recommendation:
The proposed project meets the job creation a d wage levels, job creation is appropriate
with the building size, young business owner r sident of Monticello, creates spin-off
.
BRA Agenda - 3/7/01
business. Does the proposed project creat the highest possible ratio of property taxes
paid before and after development? The es imated $290,000 market value of the building
is based on my conversation with the City/ ounty Assessor whose current value is $29 per
sq ft for a steel building. This compares to 32 per sq ft for pre cast. This is for building
only. The company plans to add another 1 ,000 sq ft in about five years. Note the total
estimated project costs is $565,000.
D. Supportine: Data:
TIF Criteria, TIF Application, wage and jo goals, "but for" test from lender, contractor
proposal, preliminary building design, preli . nary TIF estimates, and Estimated Uses and
Sources.
.
.
2
.
.
.
HRA Business Subsidy Criteria,
(2) The proposed subsidy must result in improvements to public infrastructure or
public facilities, including without limit tion. sewers, storm sew'ers, streets, parks,
recreational facilities. and other City fa ilities: 01"
(3) The proposed subsidy must re 1(we physical impediments to development of
land. including without limitation poor oils. bedrock conditions. steep slopes, or similar
geotechnical problems.
4:07 For any business subsidy that does notleet the requirements of Section 4:06, the
recipient must create or retain jobs as d termiried by the l-Iousing and Redevelopment
Authority. and must meet the minimum ,-,'age thresholds described in Section 5:03 C or 0
(whether or not the source of the subsid is tax increment financing).
5. TAX INCREMENT PROJECT EV All AlION CRITERIA
5:01 The Housing and Redevelopment Auth, rity \viIl utilize Tax Increment Financing to
suppol1 the community's long-term eco 10mic. redevelopment. and housing goals.
5:02 Eaeh Tax Increment Financing subsidy ill be analyzed and evaluated by the Housing
and Redevelopment Authority. Each pI' jeet shall be measured against the general
criteria in Sections 1 through 6 and the pecific criteria in this Section 5 applicable to tax
increment tinancing business subsidies.
5:03 FollO\ving are th evaluation criteria tl n \-vill be used by the I-Iousing and Redevelopment
Authority.
A. All business subsidy requests shall meet the "but fi)r" test. The "but for" test
means that the project would no develop solely on private investment in the
reasonable future. The develop I' shall provide findings for the "but for" test.
B. Business subsidy requests shoul:l create the highest feasible number of jobs on
site from date of occupancy wh re deemed appropriate.
C. F or manufacturing and warehou ing business suhsidy requests. at least 90% of the
jobs created must pay a \vage at the higher of $9.00 per haul'. or at least 160% of
the federal minimum wage requ rement for individuals over the age of 20.
Annual v"Tittcn reports are requi 'ed until termination date. Failure to meet the job
and \vage level goals require pa tial or full repayment of the assistance with
Interest.
For other business subsidy requ sts. jobs created must meet as a minimum the
federal minimum wage requiren ent. Annual written reports arc required until
termination date. Failure to me t the job and wage level goals require partial or
D.
3
,-,4
.
.
.
full repayment of the assistance with interest.
HRA Business Subsidy Criteria
~
E. All business subsidy requests should create the highest possible ratio of property
taxes paid before and after redevelop lent.
F. Business subsidy requests should fac'litate redevelopment or elimination of
"substandard" or "blighted" areas wi ere deemed appropriate.
G. Business subsidy requests should fac litate the "clean-up" of environmentally
unsound property where deemed app opriate.
H. Business subsidy requests should inc ease moderate priced housing options for
area residents where deemed appro pI' ate.
r. All business suhsidy requests should e deemed to promote additional desired
"spin-ofT' development.
1.
All business subsidy requests should :lemonstrate "community involvement"
including demonstrated degrees ofth various factors:
a) Local residency of the compa! y's owners and employees. or
b) Local residency of the contractors involved in the project. or
c) Membership in local business organizations. or
d) Other similar factors.
6. PROCEDURES
*
Meet with appropriate Staff to discus, the scope of the project. public
participation heing required, and othe inflmnation as may be necessary.
*
The request shall be reviewed by Staf on a preliminary basis as to the feasibility
of the project.
*
The project concept shall be placed 01 the Housing and Redevelopment Authority
agenda Cor concept review. The appl i ant \vi II make a presentation of the project.
Statl will present its findings.
*
I f the Housing and Redevelopment AL thority' s concept review is positive. Staff
\vill provide tht: City Council with an nformational concept review.
*
The applicant \vill execute and submit the Preliminary Development Agreement
accompanied by a non-refundable fee f $5.000.
*
Building and site plans submitted to tl e Chief Building Official.
4
.
HOUSING AND REDEVE OPMENT AUTHORITY
IN AND fOR THE CITY Of ONTICELLO, MINNESOTA
APPLICANT:
Steve Budd
i es I nc .
PRELIMINARY AP LlCATlON FOR
TAX INCREM NT FINANCE
FIRM OR TRADE NAME: I nte
BUSINESS ADDRESS: 20005 Hw 81
CITY/STATE: Ro ers MN
TELEPHONE: (Bus.) 763-428-1954
FAX: 763-295-1956
(Home) 763-295-3830
E- AIL: INTREC@EARTHLINK.net
TYPE OF BUSINESS:
Sole Proprietorshi S Corporation _ Partnership
Start Up
---1S..... Expansion/Relocation
Expansion
TYPE OF PROJECT:
Manufacturing
Office
Housing
Warehousing ~ Other Industrial
Retail Commercial
BRIEFLY DESCRIBE NATURE OF BUSINESS R PRODUCT LINE/SERVICE:
.
IRT recycles platinum group metal from spent auto catalyst.
DEVELOPMENT PLANS:
10.000 TOTAL SQ. FT. OF BUILDING.
BREAK DOWN BY SQ FT OF AREA sue AS MANUFACTURING, OFFICE, AND
WAREHOUSING AREA. OR SQ FT PER OUSING UNIT:
ESTIMA TED SQ FT COST OF CONSTRU nON $433; 000.00
EXTERIOR BUILDING MATERIAL ste 1 brick
OUTSIDE STORAGE REQUIRED AMOUNT
NUMBER OF ACRES 2
ESTIMA TED LAND COST 80.000.00
PARTICIPATING LENDER
State Bank of Ro ers.. i ~ ~ _
PARTICIPATING CONTRACTOR Tricon In.
JOB AND WAGE LEVEL CREATION: COMPL TE ATTACHMENT
.
AMOUNT OF TIF REQUESTED: 80 000.00
'114:1~ -
..., '2 k -? ~ ';2 "'J..
10
.
.
.
GOALS OF BUSINESS ECEIVING ASSISTANCE
Please indicate number of employees at each I vel and indicate the corresponding benefit level.
Number of jobs created is over the first two ye rs.
Job Creation
Full-time
,.
J
/
/
Part-time
Hourlv Wage Hourlv Value
Level of Voluntary
Benefits (S)
(ExcL Benefits)
Less than $7.00
$7.00 to $7.99
$8.00 to $9.99
$ IO. 00 to $11. 99
$12.00 to $13.99 . ]!'}
$14.00 to $15.99 /,3S-
$16.00 to $17.99 / '/~/
$18.00 and higher
From:
02/27/2001 11:07 #390 P.OOl
.
s-r ~E BANK
OF ROGERS
Monticello City Hall
Economic Development
505 Walnut Street, Suite 1
Monticello, MN 55362
February 27, 2001
To Whom It May Conoern:
Our customer, Integrated Recycling Technologi s, is applying for TIF funds to facilitate
their move from the Rogers area to Monticello.
.
In response to the TIF :Process fonn you provid our customer, our bank is responding
to the "but for" means test. At this time, Integra ed's request for financing fi'Qrn om bank
doe5 not meet our loan underwriting guidelines. It is our understanding that with the TIP
nmds, we should be able to $truct~U'e a loa..ry, to th m to facilitate their move to Monticello,
Final bank loan approval would be subject to re iew of the final, specific TIF terms.
If you have any further questions, please fool to ontaet me at 763-428-2222,
~elY'1 # J
(f~~
Tim Melrose
Vice President
.
12911'5 MAIN STREET · P.O. Box 127 · ROGERS, N 05374.0127 · www.6tatebankofrogers.com
763.428.2222 Member FDIC FAX 7e3.4~8.ee,O
~ , """ . .... .~"._"._..._.M,..._,.. . .........1' ..._.._ .
fl--G
.
Trieo , Inc.
Constru.ctiDn DeOelopment
F~brwuy 19,2001
Mr. Steven Budd
Integrated Recycling Technologies
P.O. Box 455
Rogers, Minnesota
55374
Dear Mr. Budd:
We are pleased to provide a qUote for .~ lIutle pre-<mgineeredsteel bui/Ping sy~ for ~
proposed new facilitY in Monticello, Minnesota,' is consists of a 1O,00Q square foot building,'
. with an eave height of20'0". This provides a mini urn under~structuralcleamnce of 17'9", ' .
.' ;
L
B~DING
.
1\. STRUCTURAL.~ The proposed building is a structural steel building. system
engineered and fabricated by Butler Manufacturin . The roof is a double slope roof arid has.a' .
1/4": 12" roof slope. The roof structurals are-design d for a 30pOund. per square foot sno'wload
and a 3 pound per square foot collateral load.. r e interior sidewallcol~. are straight, riot.
tapered, to allow for easy pallet racking installation.
B. ROOF - The roof system will be the utler MR-24@ standing seam roof system, .
which is constfU,cted of 24 gauge ALZN panels. Th roof has a UL' Class 90 windu~lift rating;
thereby allowing for possible insurance reductions. he roof is designed to expand and' contract. "
Roofclips hold the panels to the supporting structu s with no fasteners to penetrate the panel.
Gable and~ave trims are provided for full roof pan l/waU panel closure. Gutter and downsPouts
are provided on the eaves.- , ,
c. WALLS - The walls will have natural col red roclc faced concrete block toalieight of
3' 4"and 10', with Shaaowal)@ panels above,. as per he preliminary architectufal drawings.' The
block walls are insulated, above and below grade, wi h a core.filled foam which provides a R-19
insulation value.. These new ShadowaUpanels are finished with a Butler-Cote 500FP paint, .
which has a 70% KyOaf fInish. There are two colors fpanel beilIg utilized 0'; this building, shell
gray. and hunter green. 'The gutters, downspouts, and ave trims are hunter green.. ,
., ., \ '."" , ,
. . D~. INSULt\TJON ~.11ie roof will he'insula -with'lO" ofsctimfoill~inatejDsulation
having aflcune spread of 25 or less. TItiS',willp ovide ~n insulation.value of-R-3L The
S~3I1Qw.U panels ,will have 6" of s(;rim foiIlaminate . nsul~tion,providing an insulationvalueof
,.R~1.9,Withthe sam~ characteristics as theroofinsulatio . ,.
::::2185-::<-""
I ". " ',.' , .
.,0'1
....
.","
.,
1 - Laundry tub with faucets
'1 .;. 6'gidlon ~lectric water heater
, 2 .,. FloQr drains in bath
I ..Electric watercooler.
. Sanitary se\Ver stUb intofuitIrespace,.
';'".
, . .,. .; I,
.<,.,:.1','. .
vn~ , Sl-..RfNKLER~. ..... ...... ...... ."" '..... "'\,' "
Sprinklers are excluded' Tr~lIlthis"ProPo~".':.';We'~li'prrividea water line' ,sized to .
. accommodate a sprink:lersyste~..ir~equiredfoi'iliei! ture IDcp8nsion,::"" " ~ . "
',' '.',. , ,,". .. ,.,' '.: ,," ":.::,. ',." .
.
VJIl." F~SHES
.: . Sh9PJ\r:~ :
'.Floors ." Exposed concrete
'.' , ,', CeilLng~ EXPosed'insulation, .
WaH~ - ,Exposed. insulation
. ' Batht.' "
'F1Qors'- Ceramic tile'
" CeiHng..Acoustical Ceiling tile. 2'x4'. scored 0 appear 2'x2' i, ,
., " Wans - Sheetrocked. sanded) primed 4nd pmp ed; ceramic tile to a height'of4' , . .' ;. ",
~unc~r9oq) , . . , ,... , ", .. ',' ' , ,~
' . FIOqrs:' Vi~yJ floor tile with vinyl base . , ", , ' , '., . ' "
Ceil~tig ~ Acoustical Ceil~g tile. 2'x4', scored 0 apPear 2'x2'. ' '" .' ,
'. .:. 'W~ls,:' Sheetrocked. san.(:fed.prinied aIKi~in d,
:. .:';9ffj~esan4,R~ellti9n Area'::;, i . .... .
.., flOQ~CarPetwith carpet base ' -.".', .,'", .
.Ce;il~ng ~Acousti~al Ce'ilim: tilef2'X4'.' scOred:tapPe~~'X2",. .
~ans - Sheetrocked. saride~ prim~d and paint d , '
" " MiS(i~llJpequ!f' ., ,\ \. '., , ','".
, '.Pl:YWQ9d meZUUUne above offices designed f()r;75 PoWldJSquar~'.foOt 'Ioad,' "
, . :' 'Mi.~rtor,dOQrs ~o he $olid core oak'dOQrs.s 'n~aI)d:sealed"\ 'f' ..' .'
.' '", ""~ ',' i~"t<)J~~~9'cAbinets, and co~tertops in)ul1ch'roo '.. " ',' ","
': , '><'+;':.~<;(' J: ..: , "', " ',;' ", , , " ,.
IX. '.. J)1ji~,)' AND COMPI.ETION ,,' , " . . '. , ' .,',' ", . . , ,
DeliveIy IIf steel will be 10 - 11 weeks after receipt orcanttactproject compl!'iioniis.
~~}niOllt\l$ after delivery of steel, contingent pon' _nab Ie , ayailiibilily of IaboraridL.
niaterials~ ..':" . .\' ,.' '. .' .,
x. I1tJMS, .....,. . ..'," ", ,,'
" Five ~r cent (5%) of the c;'~ amount u nreceipt of tile co~ti<lCl'S~ltobepaid "
five clays lJfterdelivery. Balance of ~ontractmadea'monthly interV~ls a,s progress: payments;
. final payment within five days after completion ofproj ct.
.-
.
. '.. '
, ' :, ,.' 1.... , ". ': " " '
BASE BID COST for this project inCluding deli; ery;treigbt) 'applicable taxes) erection;, steel,
co.ncrete lUld masonry, art;hltectun~l an~ structural' wing$,:si~plan~and'everything specified in "
this proposal: FOUR HUNDRED THIRTY , ETlIOUSANDEIGHTHUNDREDS~TY,
EIGHT DOLLARS(S4331868.00), ' .,' :, " ' .
ALTERNATES " "
Alternate # 1 Replace 1200 Amp sen1cewith 160Q
Amp Service '
ALLQWANCES .
An allowlUlce is a nwnber included in the' base bid,
contrtict willQe adjusted once the actual costs are
, ' , \. '. ~ ~ ;'., " ,
, 'AddS2,500.pO
. "'/
The
Allowance #1.,. Landscaping ,
Allowance #2 - Utility Connections
$ 5,000.00
$10,000.00
XL EXCLUSIONS
, Utility hook-up charges, building pennit, I d purchase cost~ unforseen local governing
body requirements and anything not specifically men .oned in this proposal. " " ,
, , '. I
.
We are certainly looking forward to working with y u onthisprojectAny furth~r que~iionscaIl
be dirCfptlftfto me or to Travis Rippie at (763) 295.,.11 1.' , \
RespeCtfully,
Tl:1o~a$ N. Feaski:t""
President
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PRELIMINARY T ESTIMATES
INTEGRATED RECYCLING TECHNOLOGIES, INC.
February 2 ,2001
ASSUMPTIONS:
10,000 sq ft steel manufactu ng facility with small office space
2 acres of industrial land zon d I-I.
Five new jobs (does not indu e owner) See attached
Land costs $1 per sq ft or tot estimate $87,120
10,000 sq ft @ $29 per sq ft assessed value per cou ty assessor.
EMV of building $290,000
TC = $8,360
2001 Tax Rate = 128%
Estimated annual tax increment = $10,700
Estimated tax increment over 9 years = $96,300
. Less 10% admin over 9 years = $9,630
Estimated tax increment over 9 years less admin = $8,670
~
...,
Suggested TIF assistance of $40,000 NPV for land write-down and City $9,000 Local Match
for utility improvements.
I-P
.
.
.
IRTI PROPOSED USE AND SOURCES
March 1, 001
ESTIMATED USES OF FUNDS
Construction Costs
Estimated Utility Connections
Estimated Trunk Fees
Land Costs
Contingency
TOTAL
$424,868
$ 9,000
$ 17,800
$ 87,120
$ 26.212
$565,000
ESTIMATED SOURCES OF FUNDS TIF reimbur ement finance method $40,000 NPV
Lender
City
GMEF (City Loan)
Equity 20%
TOTAL
$393,000
$ 9,000
$ 50,000
$113.000
$565,000
ESTIMATED SOURCES OF FUNDS TIF upfront nance method
Lender
TIF (Equity)
City
GMEF (City Loan)
Equity
TOTAL
$393,000
$ 40,000
$ 9,000
$ 50,000
$ 73.000
$565,000
lG
.
.
.
BRA Agenda - 3/7/01
8.
A. Reference and backS!round:
Gene Chase, consultant for Red Wing Foo s, Inc., will be present at the HRA requesting
TIF assistance for land write-down. Due t an illness in his family, I have not received the
TIF application in time for submission. Mr Chase requested being on the March meeting
agenda.
The Prospect Team of Tom Lindquist, Ron Hoglund, and myself did visit the company's
facility in lower northeast Minneapolis. Ad itionally, Tom Feaski and Janice DeMars
were present. City staff and Charlie Pfeffer did have an initial meeting with Chase and
Feaski. Red Wing Foods distributes and p ckages gourmet foods and coffees to Byerly's,
Lund's, etc. I believe a pending contract th Target Super Stores exists. The company
would relocate it's coffee roasting and gift ox packaging departments to a Monticello
facility. This would require either a 10,000 or 20,000 sq ft building.
Additionally, Tom Feaski would like to co struct an adjoining 30,000 sq ft to the facility
for leasing of three 10,000 sq ft bays. Ho ever, as you know, lender's request <<letter of
intents to lease" prior to bank commitment. With the potential ofa 50,000 sq ft building,
the amount of acreage discussed with Pfeffi r is six acres. The six acres is located to the
immediate west of Twin City Die Castings. This area is zoned I-IA requiring the four
exterior walls consist of at least 50% of a aterial other than metal.
At this time I'm not sure ifthere will be on or two owners, number of jobs and wages, or
size offacility. More at the meeting.
1
.
.
.
9.
Continued - Consideration of u
North Anchor.
HRA Agenda - 3/7/01
ction relative to TIF District No. 1-22
A. Carlson Purchase Agreement and Leas Agreement status.
B. O'Connor and Bostic status.
C. Financing for Front Street acquisition nd demolition.
D. Accept letter of termination for the H House Lease Agreement.
E. Request for Proposal for North Ancho .
Draft Copy
Need for Survey
Utilize redevelopment specialist at
F. Hans Hagen Update.
G. Front Street Improvement Update.
1
.
.
.
9A. Carlson Purchase A reement and Lease reement status.
BRA Agenda - 3/7/01
9C.
Upon returning from vacation on February 6, HRA Attorney Greensweig informed me
that he had just spoke with the Carlson Atto ey Peterson who responded his client agrees
to the changes of the February HRA meetin . Attorney Greensweig felt the HRA could
proceed with the acquisition of the O'Conn r and Bostic properties. Contacting the lIRA
Chair and based on the HRA's strategy relat ve to the counter-offers for the O'Connor
and Bostic properties, the lIRA Chair sugge ted to wait with moving forward on the
counter-offers to O'Connor and Bostic until the Purchase and Lease Agreements are
executed by the Car]sons. It is planned that Attorney Greensweig will e-mail the
agreements to me today, February 26. The A officers executed the Purchase
Agreement with attached exhibits which was mailed on February 28 to Attorney Peterson.
As you recall, the Purchase Agreement state a closing date of on or before Apri] 1,2001.
Attorney Greensweig has requested the upd ed abstract be submitted to him in
anticipation of the closing. In a cover letter 0 Attorney Peterson, I tactfully highlighted
the proposed closing date to expedite gettin the executed document returned.
9B.
O'Connor and Bostic status.
O'Connor cal]ed my office on February 26, a king again where things were at. I've
requested Ken He]vey give him a courtesy ca I. Ken did talk to Bostic yesterday. He
suggested because of the delayed process an change in market that an update on the
comparable housing be completed. I gave hi the go-ahead on February 26. The seller
by rights has 90 days to find comparable hou ing. He]vey indicated we can meet the June
30,2001 date by giving notice between Marc 15 and 30. Helvey will be contacted
immediately to proceed with counter-offers u on receiving the executed Carlson
document.
Financin for Front Street ac uisition and demolition.
A couple of months ago, Mark Ruff suggeste the HRA finance the acquisition and
demolition of the Front Street properties thro gh a loan from the City. This appears
acceptable to Rick Wolfsteller and perhaps aft r redevelopment of Block 52 commercia]
area, a bond may be issued. In conversation ith Mark and with the anticipation of the
closing on the Carlson property prior to the A ri] lIRA meeting, he suggested a resolution
relative to financing the acquisition be drafted. y Kennedy & Graven for adoption by the
lIRA. In conversation with Attorney Bubul, h suggested a Loan Agreement between the
City and HRA for $275,000 at ~ % for a erm of _ years be approved. After
Ju]y 31, 2002, the HRA will hold a public hea ng and sell the property to the City for
$35,000. Because the parcel lies within the I O-year flood plain, the parcel can not be
built upon. The Loan Agreement will be on th City Council agenda March 12. In
anticipation of the Carlson closing, please cons"der the following alternatives.
I
-,
.
Alternative Action:
BRA Agenda ~ 3/7/01
1. A motion to adopt a resolution appr ving purchase of certain property and a Loan
Agreement between the City and
2. A motion to deny adoption of a reso ution approving purchase of certain property
and Loan Agreement between the Ci y and HRA.
3. A motion to table any action.
Recommendation:
Recommendation is alternative no. 1. Intere t rate and term length to be determined.
Supportine Data:
Copy of resolution and Loan Agreement.
.
.
2
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.
HOUSING AND REDEVE OPMENT AUTHORITY
IN AND FOR THE CIT OF MONTICELLO
RESOLUTION APPROVING PURCH SE OF CERTAIN PROPERTY AND
A LOAN AGREEMENT BE EN THE HOUSING AND
REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF
MONTICELLO AND THE CITY OF MO TICELLO
WHEREAS, the Housing and Redevelopm nt Authority in and for the City of Monticello
("Authority") is administering its Redevelopment P'oject No.1 ("Project"); and
WHEREAS, within the Project the Aut ority has created Tax Increment Financing
District No. 1-22 (the "TIF District") in order to facilitate the redevelopment of the downtown area
;and
WHEREAS, to carry out the Project, and specifically to eliminate blighting f~-l.ctors created
by an existing structure, Authority has determined to acquire the property described as Lots 1, 2,
;:3, 4, and :5, Block 64 Townsite of Monticello, Wrig t County, (the "Pl'Operty"); and
WHEREAS, to finance the cost of acqu sition of the Property, the Authority has
determined to enter into a loan agreement with he City (the "Loan Agreement") in the form
substantially on file in City Hall;
NOW, THEREFORE, BE IT RESOLVED b the Board of Commissioners of the Housing
and Redevelopment Authority in and for the City of Ionticello as follows:
1. The A.uthority appl'Oves acquisitio of the Property for a purchase price of
$27:5,000 pursuant to a purchase agreement on fi e in City Hall, and also approves the Loan
Agreement.
2. The proper Authority officials are au horized and directed to execute the purchase
agreement and the Loan Agreement on behalf of th Authority and to cal'l'y out on behalf of the
Authority the Authority's obligations thereunder.
3. The propel' Authority officials are a Ithorized to execute any deeds any related
certificates or documents necessary to carry out th real estate transaction contemplated under
the purchase agreement and the loan described in th Loan Agreement.
Approved by the Board of Commissioners of t e Housing and Redevelopment Authority in
and for the City of Monticello this 7th day of March, 2 01.
ATTEST:
._----------._---,~
Executive Director
SJB-19.jIO.jvl
MN 190-90
Chair
.
.
.
LOAN AG
THIS AGREEMENT is entered into as f the __ day of , 2001 by and
between the City of Monticello ("City") and the Housing and Redevelopment Authority in and
for the City of Monticello ("Authority").
WHEREAS, the Authority has underta en a program to eliminate and prevent the
emergence or spread of blight and blighting condi ions in the City of Monticello, Minnesota (the
"City"), and in this connection created Redevelop ent Project No. I (the "Project") in an area (the
"Project Area") located in the City and Tax In rement Financing District No. 1-22 (the "TIF
District") within the Project Area. all pursuant to innesota Statutes. Sections 469.001 to 469.047
(the "Act") and Minnesota Statutes. Sections 469.1 4 to 469.179; and
WHEREAS. to further the objectiv s of the Project and the TIF District including
removal of blight the Authority has proposed to a quire property in the City described as Lots I.
2, 3, 4. and 5, Block 64 Townsite of Monticello. right County (the "Property") for a purchase
price of $275.000; and
WHEREAS. the City is a state public bod' that is authorized under Minnesota Statute,
Section 469.041, clauses (I) and (8) to make loans f( I' the Project; and
WHEREAS, the City has determined that i is in the best interest of the City to loan the
Authority cel1ain funds in aid of the Project under th temlS and conditions of this Agreen1ent.
NOW. THEREFORE. in consideration of tie premises and the mutual obligations of the
parties hereto. each orthem does hereby covenant an agree \vith the other as f()IIO\vs:
I. The Loan Amount. Subject to and up n the terms and conditions of this Agreement
City agrees to loan to the Authority the sum of T '0 Hundred and Seventy-Five Thousand and
nollOOths Dollars ($275.000), or so much thereof a is disbursed to the Authority in accordance
with this Agreement (the "Loan') The Loan shall be evidenced by a Tax Increment Revenue
("Note") payable by Authority to City substantially i the form attached to this Agreement, which
shall be delivered to the City and dated as of the Loan Closing Date as defined in Section 3.
2. Repavment of Loan. The Loan shall b repaid with interest as tallows:
(a) Interest at the simple rate of % per annum shall accrue from the
Loan Closing Date (as hereinafter defined) unt'1 the Loan is repaid in full.
(b) Principal and interest on the Lo n amount will be payable solely from and to
the extent of the "A vailable Tax Increment.' which means 90% of the tax increment
generated by the TIF District and received b the Authority from Wright County. after
payment or provision for payment of all prior obligations secured by such tax increment.
The Authority hereby ilTevocably assigns and p edges to payments on the Note all Available
Tax Increment. The pledge of Available Tax Increment hereunder is subordinate to any
outstanding contracts, notes or other obligatio I s secured by tax increment generated from
I
SJ 13-1 <).j()99v I
MNI90-9()
.
.
.
the TIF District. The Authority may issue additional obligations secured by Available Tax
Increment on a parity, superior or subordin. te basis to the Note.
3. Disbursement of Loan Proceeds. The City will disburse the Loan amount to the
Authority upon closing on the Authority's acquisition of the Property (the "Loan Closing Date").
IN WITNESS WHEREOF. this Agreeme t has been duly executed and delivered by the
proper officers thereunto duly authorized on the da. and year first written above.
SJB-1670XI
MNI(1)-XO
CIT't OF MONTICELLO
By
Its M )lor
By
Its Citv Administrator
HOU~ ING AND REDEVELOPMENT
AUTl- ORITY IN AND FOR TILE CITY OF
MON- ICELLO
By
Its
By
Its Exe utive Director
2
.
.
.
UNITED STATE OF AMERICA
STA TE OF M NESOT A
COUNTY 0 WRIGHT
HOUSING AND RED EVE OPMENT AUTHORITY
IN AND FOR THE CIT OF MONTICELLO
No. R-I
$275.000
TAX INCREMENT EVENUE NOTE
SERIES 1999
Rate
%
Principal Amount: $275.000
Registered Chvner: City ofMomicelh Minnesota
Date
of Original Issue
.2001
The Housing and Redevelopment Authorit, in and for the City of Monticello. Minnesota
(the "Authority"). for value received. certifics that i is indebted and hcreby promises to pay to the
registered owner specified above. or registered assi ns (the "O""ner"). but solely from the sources.
to the extent and in the manner hereinafter identifie . the principal amount speci lied above together
with interest on the outstanding principal sum from imc to time at the interest rate specified above.
payable on each February I and August 1 ("Payme t Dates"), commencing _~_ 1. 20_ and
continuinl..( throu~h 1. 20 in the amou ts set forth in Attachment A hereto.
~ '- -
Payments arc payable by mail to the addre s of the Ovvner or such other address as the
Ovvner may designate upon 30 days' written notice t the City. Payments on this Note are payable
in any coin or currency of the United Sates of America which, on the Payment Date. is legal tender
for the payment of public and private debts.
Interest at the rate stated herein shall accrue on the unpaid principal. commencing on the
date of original issue. Payments shall be applied first to accrued interest and then to unpaid
principal.
date.
This Note is subject to prepayment in whole I' in part at the option of the Authority on any
This Note is issued to aid in financing cer ain public redevelopment costs of a Project
undertaken by the Authority pursuant to Minnesota St tutes. Sections 469.00 I through 469.047. and
is issued pursuant to a Loan Agreement between the Authority and the City dated __
200 I ("'Loan Agreement""). and pursuant to and in ful conformity with the Constitution and laws of
the State of l'vlinnesota. including Minnesota Statutes. Sections 469.174 to 469.179. This Note is a
S.I B-Il)-H)l)'}v I
r..IN I')().l)()
.
.
.
limited obligation of the Authority which is payabl solely from Available Tax Increment as defined
in the Loan Agreement. This Note and the inte est hereon shall not be deemed to constitute a
general obligation of the State of Minnesota or an political subdivision thereof. including, without
limitation, the Authority. Neither the State of Minlesota, nor any political subdivision thereof shall
be obligated to pay the principal of or interest on t is Note or other costs incident hereto except out
of moneys pledged thereto under the Resolution. a' d neither the full faith and credit nor the taxing
power of the State oflVlinnesota or any political su division thereof is pledged to the payment of the
principal of or interest on this Note or other costs i cident hereto.
The Authority shall pay to the Owner on eo eh Payment Date the lesser of (i) the scheduled
amount due on such Pavment Date as shown in At achment A. or (ii) the amount of Available Tax
Increment available to the Authority as of that Pay llent Date. To the extent that. on any Payment
Date. the Authority does not have on hand suf lcient Available Tax Increment to make the
scheduled payment. the amount of deticiency shall e deferred and paid, without interest thereon, to
the extent possible on the next Payment Date on 'hich the Authority has received Available Tax
Increment in excess of the scheduled payment al ount on such Payment Date. If any amount
payable under this Note remains unpaid atter the tinal scheduled payment shown on Attachment A
the unpaid amount shall be forgiven and the Auth rity shall have no fut1her liability with respect
thereto.
This Note shall not be transtClTed to any pers n without written consent of the Authority.
IT IS HEREBY CERTIFIED AND RECITED that all acts. conditions. and things required
by the Constitution and Imvs of the State of Minne ota to be done. to exist. to happen, and to be
performed in order to make this Note a valid an binding limited obligation of the Authority
according to its terms. have been done. do exist. ha 'e happened. and have been performed in due
f0l111. time and manner as so required.
IN WITNESS WHEREOF. the Board of Commissioners of the Housing and
Redevelopment Authority in and tl1r the City of MOl ticello, Minnesota has caused this Note to be
executed with the manual signatures of its Chair uld Executive Director. all as of the Date of
Original Issue specified above.
Executive Director
SJB-I 1>70X I
MNI9()-XO
OUSING AND REDEVELOPMENT
UTHORITY IN AND FOR THE CITY OF
ONTICEllO, MINNESOTA
2
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.
.
ATTACH~ tENT A
Payment S 'hedule
Payment Date Interest Principal Total Payment
-
,,".
-'~-
-.
-.
.~---
SJ 1l-19-to99\ I
I\IN191)-90
..--.-,,--- 0..____
. BRA Agenda - 3/7/01
9D. Consideration to acce t letter oftermina ion for House ease located at 3 Walnut
Street.
A. Reference and backS!round:
Sometime ago Brandon Link, tenant, was co tacted relative to the HRA plans for
redevelopment of the area. Periodic updates were related to the tenant. Brandon
informed me on February 26, he would be s bmitting a letter of termination with an
effective vacating date of March 31, 2001.
As you recall, the monthly rent was $650 an the first month rent was forgiven in lieu of
repairs and paint. In addition, the Lease Agr ement called for the tenant to deposit a $500
security deposit and the last months rent. T last month rent of $650 will be applied
toward the March rent and upon vacating th property, the $500 security deposit will be
returned to Brandon.
.
Brandon mentioned his roommate may wish 0 rent if the HRA is not planning to demolish
right away. He was informed the roommate ould need to fill out an application for
review and would be required to pay the first and last months rent and the $500 security
deposit. I have not heard anything further.
B.
Alternative Action:
1. A motion to accept the letter oftermi ation from Brandon Link for the House
Lease located at 3 Walnut Street.
2. A motion to deny acceptance ofthe Ie ter of termination from Brandon Link for
the House Lease located at 3 Walnut treet.
3. A motion to table any action.
C. Recommendation:
Recommendation is alternative no. 1.
D. Supportine Data:
Letter of termination.
.
1
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.
, l~f1)K,-..v;'~i 27 I 200 1
1
.10 II-t Crry Or- VViON-nCE.u.o /
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/IV7I) G 71.
,,1 ~..jiLL bE n'Y)'vED OlA-r I'VD '~AJE
,NO LAT8'( JH^t~ /YV)I-Jry.y J AP /L 2 .
,ALL OF WMiCi-l i Exft'c.J 1- 5Att V:./\)
.....,'" 0 ...-, I,' ) ,..., IuD C""'- Ni. /
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6c vV7..t i L[-; [) TO:
yV)o, T i ceLw (V1l'y
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. HRA Agenda - 3/7/01
9E. Request for Proposal for North Anchor.
1. Draft Copy -
At the HRA meeting in February, the BRA enied the request for Steve Grittman, City
Planner Consultant, to prepare design cone pt sketches (drawings) for the North Anchor
(Block 52, Lots 7 through 15 with some fie "bility). Estimated costs was $2,000 to
$3,000. The purpose to develop a vision, p t goals into words and pictures. Instead, the
HRA requested city staff prepare a draft co y of a request for proposal for the North
Anchor.
2. Survey
.
Grittman, O'Neill, and Koropchak met and egan to define the project for the RFP.
What is the project area? What are the boun aries? What are the mixes of uses? Parking
is determined by use? It was determined in rder to draft the RFP, the project and
boundaries need to be defined. Once the bo ndary is defined, a survey is needed in order
to supply to developers. Upon contacting th BRA Chair for authorization to proceed
with Taylor Land Surveys to prepare a surve at an estimated costs of $1,500, the Chair
preferred BRA action and further discussion. At the February meeting, the BRA also
suggested meeting with property owners of lock 52 should begin. At this point a
meeting between Steve Johnson, Lahr, and K ropchak is set for March 9, 10:30 a.m.
Have talked to Kjellberg and Springborg, nee to call back. Two voice messages with
Froslie.
3. Consultant.
Do to the state of confusion relative to redev lopment of Block 52, Mark Ruff will talk a
little about direction and the use of Jim Proffe , Ehlers & Associates, to guide us through
the process. Remember, we need to re-run c shfIow numbers for TIP 1-22 based on the
EMV as of January 2001. The City/County ssessor has promised me the EMVs for
Sunny Fresh, Locust Street Plaza, and Funer Chapel in March. Farrell Gas closing date
not set and no Preliminary Development Agre ments with Hans Hagen or Fluth.
Decisions be make:
1. Define boundary and mix of uses desir d?
Would you rather hold a workshop wit Council invited to define boundary and
mix of uses?
Would you like Jim Proffer to draft an P based on your input or hold a
workshop with he as leader?
Is there merit to a survey and authorize ordering the survey?
.
June 30, 2001 ~ Parcels with no redevelopm nt/improvement action or public
1
.
BRA Agenda - 3/7/01
improvements will drop out but can be r -instated up until June 30, 2002. They are
re-instated at the market value of 2001 a d not the market value of 1997. In most
cases this means a lose of tax increment s most market values have increased.
June 30,2002 - Tax increment from Dist ict No. 1~22 must be spend. Otherwise
debt will be retired and district decertifi d. The tax increment from projects like
funeral chapel, Marquette Bank, First M'nnesota Bank, Locust Plaza, Sunny Fresh,
and proposed Farrell Gas would not be aximized and is unlikely you would be able
to create another large redevelopment di trict because of legislative changes and the
parcels have been improved. Worse cas scenario, 25% of the tax increment from a
Redevelopment District can be spend ou ide the district.
.
.
2
.
.
.
9F.
HRA Agenda - 3/7/01
Hans Ha~en Update.
At this point, Hans Hagen has not contacted me as per his e-mail. I thought I'd wait until
after the March meeting, since the HRA doe not have control of the sites. It is planned
that Mark Ruff, O'Neill, and myselfwill me with him.
9G. Front Street Improvements
Site review staff sat a workshop date ofMa ch 8, 5:00 p.m. with Council for establishing
an assessment policy for street improvement and infrastructure replacement. This for the
areas of East 7 Street, Cedar Street, and Fr nt Street. However, Council was not
requested to call a special meeting. Instead, staff meeting March 8, noon to 2:00 p.m. 7
Street and Front Street Reconstruction Feasbility Study for Council March 26. Would be
nice to have for meeting with Hans Hagen.
1
.
.
.
BRA Agenda - 3/7/01
10.
Consideration to discuss industrial land c uisition 0 tions and to develo an action
Ian to address the short and Ion term n ed for industrial land includin
acquisition of land.
A. Reference and backe:round:
At the HRA meeting in February, the commi sioners reviewed the HRA Economic
Development Plans for 2001. One goal liste was to explore the idea to request the
Planning Commission to address the Gold N gget parcel as industrial zoning. At that
point, the commissioners requested this issue be on the March HRA agenda.
Chair Lahr and Barger attended a Marketing ommittee on March 2 and will report on
those discussions and future direction. It ap ears the HRA and IDC have a common goal
to develop an action plan to address the sho and long term need for industrial land
including the acquisition ofland.
1
.
.
.
11.
Recommendation to authorize payment.
1
BRA Agenda ~ 3/7/01
BRA bills.
Kennedy & Gra en, Chartered
200 South Si th Street
Suite 70
Minneapolis. N 55402
.
(612) 3379300
February 1 ,2001
Statement N . 36586
City of Monticello
ACCOUNTS PAYABLE
505 Walnut Street. Suite 1
Monticello, MN 55362
Through January 31, 2001
MN 190-00041 Redevelopment - General
MN190-00090 Acquisition of 225 Front St./Carlson
Expenses
.
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.
.
OKro PAY?_{)fr(U
COde:_'J-13. l((,,'3o\. ?'c''/(
Initial ~-::L- -
108.50
0.00
30.15
Total Current Billing:
138.65
Kennedy & Gra en, Chartered
200 South Si th Street
Suite 70
Minneapolis, N 55402
.
(612) 337 9300
41-1225 94
February 1 ,2001
Invoice # 6586
City of Monticello
ACCOUNTS PAYABLE
505 Walnut Street, Suite 1
Monticello, MN 55362
M N 190-00041
Redevelopment - General
Through January 31, 2001
For All Legal Services As Follows:
1/16/2001 SJB Telephone conference with 0 Koropchek regarding various
TI F matters.
1/29/2001
SJB Telephone conference with 0 Koropchek.
To al Services:
.
For All Disbursements As Follows:
Photocopies
Postage
Corrine H. Thomson; mile ge expense
To al Disbursements:
12/6/2000
.
Tot I Services and Disbursements: $
Hours
0.50
0.20
$
Amount
77.50
31.00
108.50
$
0.60
0.34
25.08
26.02
134.52
Page: 2
Kennedy & Grav n, Chartered
200 South Sith Street
Suite 4 0
Minneapolis, N 55402
.
City of Monticello
January 31, 2001
MN190-00090 Acquisition of 225 Front St./Carlson
For All Disbursements As Follows:
Fax
Postage
Photocopies
.
.
Tot I Disbursements:
Tot I Services and Disbursements: $
$
3.00
0.33
0.80
4.13
4.13
.
.
.
MC100-01
GENERAL
Montie 110 HRA
505 Walnut A enue, Suite 1
Monticello, MN 55362
February 10, 2001
Tl c; \ - '?-
~N(J' cJ2
Invoice # 18066
Professional Services
').\?"L{ ~S'-.):).,'?;\99
1/3/01 MTR Meeting with the HRA
Total Due This Month:
Status of Account:
.~urrenL_ .__ _-.lO~9~___._._----EO Da~.__
$250.00 $656.25 $0.00
Hours Amount
2.00
250.00
PLEASE KEEP WHITE COpy FOR YOUR FILE A D REMIT PINK COpy WITH PA YMENT TO:
.
EHLE S
& ASSOCIATE INC
-"'-'."..._"~"'.-
200 $250.00
90 Days 120+ Davs Total
-$0.00 -----$-O'OO----u~.9lffi:"25
3060 Centre Pointe Drive
Roseville, MN 55 13-1105
651.697.8 00
.
.
.
12.
BRA Agenda - 3/7/01
Executive Director's Report.
Report given at meeting. Ran out of time.
.
.
.
I
I
!
I
d PAY TO THE
~ ,\ ORDER OF
~~
~~
..~~._-~ ._~--.. ~~"-"-"~-"-~'~'-'-'~~-'-"-.""--- --_.,--~,~-- ~.-
CUSTOM CANOPY, INC.
219 DUNDAS ROAD PH. 612-295-0060
MONTICELLO, MN 56362
City Of Monlicel1o
Two 'I'b.ou.Md Four HIindn:d. Tweuty-Six -.l ~100"-""""'r""""--
City OfMonticeno
P.O.Box 1147
Montic;eUo. MN ,55362
MEMO
1m TlF AGiUlEMENT
.....-
11"0 21;8 ~?II" I:Oli ~liO 3Q 3 ~I:
--........--.......:...~,~ ""~~"""~'~~~:'_"'''''''''''''''''"''"'_.,,,--,,,,,--,,:.,............~,.~
CUSTOM CANOPY, INC.
City Of MonIicello
6320 . BuildWg Rent
1999 TlF AOREEMENr
Cll8h in BlWk
1999 TlF AGREEMENT
1,."._.._
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