HRA Agenda 02-04-1998
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AGE A
MONTICELLO HOUSING AND DEVELOPMENT AUTHORITY
Wednesday, February 4, 1998 - 7:00 p.m.
City all
MEMBERS: Chair Brad Barger, Vice Chair Stev Andrews, Darrin Lahr, Bob Murray, and Dan
Frie.
COUNCIL LIAISON:
Brian Stumpf
STAFF:
Rick Wolfsteller, Jeff O'Neill, and llie Koropchak.
GUESTS:
David Bell, Freedom Development
Barry Fluth, BBF, Inc.
Brad Johnson, Lotus Realty Servic s
Brad Larson, Attorney
Dan Greensweig, HRA Attorney
1. CALL TO ORDER.
. 2. CONSIDERATION TO APPROVE JAN ARY 7 AND JANUARY 28, 1998 HRA
MINUTES.
3. CONSIDERATION OF ADDING AGE A ITEMS.
4. CONSIDERATION TO APPROVE THE RIVATEREDEVELOPMENTCONTRACT
BETWEEN THE HRA AND BBF, INC.
5. CONSIDERATION TO APPROVE LEV L OF TIF ASSISTANCE FOR TAX CREDIT
APPLICATION BY FREEDOM DEVEL PMENT CONSULTANTS.
6. CONSIDERATION TO HEAR DIRECTl NTAKENBYTHES~LGROUP
CITY!HRA/NG MEETING AND CONSI ERATION OF HRA ACTION IF
NECESSARY.
7. CONSIDERATION TO AUTHORIZE P A ENT OF HRA MONTHLY BILLS.
8. CONSIDERATION OF THE EXECUTIV DIRECTOR'S REPORT.
9. OTHER BUSINESS.
10. ADJOURNMENT.
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MONTICELLO HOUSING AND RE EVELOPMENT AUTHORITY
Special Meeting ~ Wednesday, J nuary 28, 1998 - 7:00 p.m.
City H n
MEMBERS PRESENT:
Chair Brad Barger, V ce Chair Steve Andrews, Darrin Lahr, Bob
Murray, and Dan Fri .
COUNCIL LIAISON: Brian Stumpf.
STAFF PRESENT: Rick Wolfsteller, JeffO'Ne' and Ollie Koropchak.
GUESTS:
Attorney Dan Greenswieg, Mayor B Fair, Arve Grimsmo, Bob and Barb Esse,
and Bob Harwarth.
1. Call to Order.
Chair Barger called the special meeting oft e HRA to order at 7:00 p.rn.
2.
The special HRA meeting was called by Co . sioners Andrews and Frie to discuss the
potential purchase ofland along Walnut Str et and the public notice posted three
working-days in advance.
Some commissioners inquired: Why the rus to purchase Lot I, 2, 3, 4, and 5, Block 13,
City of Monticello, without a project? And he need for a special meeting? Chair Barger
felt the HRA's focus ofthe Revitalization P was the redevelopment of the north and
south anchors and/or the development of co ercial/industrial Andrews, Frie, and
Murray expressed the need to move the pro ect along in a timely fashion and the intent of
the meeting was to discuss the potential phase.
Lahr inquired if the price of the Grimsmo p eel was in the community center budget?
O'Neill responded yes; however, the price i only an estimate. Some did not understand
why the HRA was involved as the City Co ci1 had not requested the HRA purchase the
parcel. Lahr preferred the HRA purchase t e parcel as one project package, as part of the
Lease Revenue Bonds. O'Neill informed mbers there was no rush to purchase the
parcel as transaction within city hall are still on-going. Murray felt: Whether the city or
the HRA acquires the land for the lease rev ue bonds, an appraisal is necessary now or in
the future.
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HRA MINUTES
JANUARY 28,1998
Grimsmo informed HRA members that he d wife, Jean, purchased the parcel one or two
years ago for the purpose to construct a ne mortuary for the growing community of
Monticello. Roger and Sonja Carlson hav no ownership in the parcel. Grimsmo being 61
years old said he would like construct a n mortuary to meet the needs ofthe community
for the next 20 some years. For obtaining funding for the proposed mortuary along
Walnut Street, an environmental assessm was ordered taking four months to complete.
In the meantime, the option to purchase th existing city hall arose. He suggested the
community center/training center project ve ahead with construction in phases. The
phased approach allows time for a portion f the project to go to the voters. As for his
time-line, Grimsmo's funding is in place an the zoning is legal to proceed. to construct
along Walnut; however, he remains open t the option to purchase city hall. It is not a
time-line issue, he prefers to trade the W ut Street parcel for the city hall.
Frie felt the HRA should purchase the land p-front for purpose of redevelopment. Darrin
Lahr made a motion of no interest in acq . . g the parcel described as Lot 1,2,3,4, and
5, Block 13, City of Monticello at this time The motion in order to allow the process to
evolve. If the motion was to table anyacti n, the agenda item would continue until action
was taken. Brad Barger seconded the mot' n stating there is a seller willing to trade the
properties. Frie again stated: The future v 'ue of the parcel is a critical piece to the
redevelopment of downtown. Stumpf sees the need for city hall expansion and feh
direction will be forthcoming with the Frid y small-group meeting. City Council decision
to occur February 9 or 23. With no furthe discussion, a vote was called. The motion did
not pass. Yeas: Lahr and Barger. Nays: drews, Frie, and MlUTay.
Dan Frie made a motion that the HRA is in erested in the described parcel for
redevelopment and interested in the results fthe HRAlCitylNG group meeting. The
motion included the small group proceed q 'cklyto accommodate the seller. Steve
Andrews seconded the motion. With no er discussion, the motion passed.. Yeas:
Frie, Andrews, and MlUTay. Nays: Barger d Lahr.
3. Other Business.
Koropchak informed HRA members that 0 er business than posted in the public notice
may be discussed at a special meeting if all ommissioners are present. Information and
the modified Private Redevelopment Contr ct between the HRA and BBF, Inc. had been
distributed to the commissioners. Koropch asked if the commissioners would like to
discuss the modification now or at the Fe ary 4 meeting. No comments have been
received from Mr. Fluth. The HRA co . sioners agreed to discuss the modifications at
the February 4 meeting.
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HRA MINUTES
JANUARY 28, 1998
With the establishment of a small group to study the design and financing of the
community and training center and the s group to consist of two council members,
two HRA members and one NG represent .tive; Barger as Chair of the HRA volunteered
and Darrin Lahr also volunteered. MCP air Barb Esse felt for consistency it was
important that Andrews, the lIRA represe tative to the community centerING task force,
be on the small group. lIRA committee/ta k forcce representatives are generally selected
through a volunteer and motion process. ob Murray made a motion to appoint Chair
Barger and Commission Andrews to the s 11 task group. Dan Frie seconded the motion.
With no further discussion, the motion pas ed 4-1. Yeas: Murray, Frie, Andrews, and
Barger. Nays: Lahr. Small group meetin scheduled for approximately 2-hours on
Friday, January 30 at 2:30 p.m., city hall.
4.
Adjournment.
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Dan Frie made a motion to adjourn. Bob urray seconded the motion and with no
further business, the meeting adjourned at :00 p.m.
a~~fl ~
Ollie Koropchak, Execut~irector
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HRA AGENDA
FEBRUARY 4, 1998
4.
A. Reference and Background:
At the January 7 HRA meeting, Brad Johns n requested an additional $200,000 ofTIF
assistance for a total of $600,000 assistance because of increased costs to acquire two
businesses and other relocation costs. Som liability issues still need to be resolved. Mr.
Johnson also informed HRA members that roject soft costs were reduced by some
$235,000. The HRA previously had appro ed $400,000 ofTIF assistance for demolition
and relocation costs.
The motion by the HRA in January was: Th HRA authorized legal counsel to finalize the
Private Redevelopment Contract between t e HRA and BBF, Inc. based on a meeting to
discuss liability issues associated with reloc tion and buy-outs, agreed to TIF assistance in
an amount not-to-exceed $500,000 with the HRA to receive the first annual tax increment
of$45,000. The developer was willing to t ke the risk of any classification rate changes
and felt the annual tax increment would be eater than $90,000.
Enclosed is a copy ofthe memo from Atto ey Bubul explaining the modifications to the
contract and a copy of the contract with the proposed modifications. Brad Johnson, Barry
Fluth, and Attorney Brad Larson also recei a copy. No comments have been received.
B. Alternative Action"
1. A motion to approve the Private R evelopment Contract between the HRA and
BBF, Inc. assisting the developer wi h an amount not-to-exceed $500,000 for
relocation, demolition, and site impr vement costs as so described in the memo
from Steve Bubul dated January 23, 1998.
2. A motion to approve the Private Re eve10pment Contract between the HRA and
BBF, Inc. subject to additional mod' lcations.
3. A motion to deny approval of the vate Redevelopment Contract between the
HRA and BBF, Inc.
4. Table any action.
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HRA AGENDA
FEBRUARY 4, 1998
C. Recommendation:
Recommendation is for alternative no. 1.
the relocation agreements between Fluth
between Fluth and Cub Foods in order to
of May 1, 1998.
D. Supporting Data:
e developer should be encouraged to execute
d current mall tenants and the lease agreement
eet the contract construction commence date
Copy of memo and contract excerpts as pr posed with modifications.
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J{cnnc:dy
470 l'.llsb..ry C"Ul.Cr
200 So..m SllIm Srrc<:t
M;nll..~poli5 MN 55402
(61~) 337-~300 g;lcphulIc
(C.12) ;37-9310 flA.
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CHARTERED
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STUHEN J. BtlBUL
AUOCml)' III [.&'"
DirDCt Dial (612) 337-9228
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MEMO
DUM
January 23. 1998
TO:
FROM:
OUie Koropchak
Stephen Bubul
BE;
Contract for Private Redevelopmen with BBF. Inc.
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liRA staff and consultants met with Barry Fluth and his consultants on January 15. 1998 to
discuss renns of thr; proposed ContraCt. As you ow. the initial draft of the COlllnCt provided
for reimbursement of Mr. Fluth. S COStS to relocau: existing tenants and demolition the strUcture.
up to a maximum principal amount of $400,000 At the lase HRA meeting. commissioners
agreed to increase the maximum amount to $500.
Mr. Fluth's initial estimates of relocation COStS - lude some amowlts that actUally represent
compensation for the tenant's leasehold interest . in some cases. compensation fot fixtures.
Further. relocation costs for some tenants may be less man amounts that would be paid if the
HRA were: to acquire the propeny.
To address this situation. the Conuact bas been
1. The Redeveloper remains obligated to ob . n agxec:ments with each tenant. under which
the tenant States that agreed-upon payme ts from the Redeveloper fully satisfy any
relocation amounts to which they are emit! .
2. A relocation consultant mUSt review the pa ems lO identify the amounts that constitute
true "relocation. II as opposc4 to acquisition f a leasehold intereSt or other propcny right.
Only the rdocation CoSts will be subjr;ct to reimbursement with tax increment.
3.
Because some of the costs paid [0 tenants will not be reimbur~ site improvement COStS
have been added to the TIF-e1igible items. he HRA will reimburse the Rede...e1oper for
up to $500.000 of actual relocation. de lition. administrative costs paid by the
.
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January 23. 1998
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Redeveloper. together with any site impr "'ement Co~1S needed w bring the total up to
$500.000.
4. The Redevelopct remains obligated to in emnify the HRA for any claim that might be
made for relocation benefits. J.f the Red veloper is required to make:: such a payment
within twO years after the: date of the A cement, the lIRA will issue au additional rax
increment note in the arnountof 50% of e payment. up ro a maximum of $50,000.
5. The initial $500.000 note is revised to pro ide that. after the HRA receives 10 percent of
the tax increment plus $45,000. the r . - g tn increment in any year is pledged to the
Redeveloper. (Pre~iously. the HRA iUld e Redeveloper split the balance of increment
aftel' the Redeveloper recei",ed $45.000 e h year).
Changed pages to the Contract that reflect the' modifications are arcached. If you or liRA
commissioners have any questions. please lc::t me know.
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HOUSING AND REDEVE OPMENT AUTHORITY
IN FOR THE CITY Of M NTICELLO, MINNESOTA
. B.B.F. INC.
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Dated as of: 1998
This document was drafted by:
KENNEDY &. GRAVEN. Cbancred
470 Pillsbury Center
Minne-cipolis. MinneSOta 55402
Telephone: 337~9300
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PREAMBLE
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Section 1.1. Definitions
2
Seclion 2.1. Representations by the AuthoritY ............................. 5
Section 2.2. Representations and W~ties b the Redeveloper. . . . . . . . . . . . - - . .. 5
Section 3.1-
Section 3.2.
SeetioD 3.3.
Section 4.1. ConstrUCtion of Minimum Impra ements . . . . . . . . . . . . . . . . . . . . . . .. 9
Section 4.2. ConstruCtion Plans ......... .......................... - .. 9
Section 4.3. Commencement and Completion f Construction. . . . . . . . . . . . . . . . .. 10
Section 4.4. Cenificate of Completion. . . .. ............................ 10
Section 5.1.
Section 5.2.
12
13
Ins~ce ...............
Subor~tion .... ........
..... ". .... II.. __.."'........ .....
....".............." ....." ....
Section 6.1.
Section 6.2.
Section 6.3.
14
14
14
Right to Collect Delinquent T
Review of Taxes ...,.,....
TIF Oisuicl, Pledge of Tax IDere
__.. _. .....10_......... .........
. .. .. . ,. .. .. .. .. .. . . .. .. .. . . .. .. . . II ... .. ...w .. ..
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Section 7.1. Mongage financing .................................... AlS
Section 7.2. Authority's Option to Cure Defa t on Mortgage. . . . . . . . . . . . . . . -. ^l~
Section 7.3. Subordination and Modification r Benefit of Mortgagee. . . . . . . . . . . . ^>>
Section 8.3.
e
Section 8.1.
Section 8.2.
Representation as to Redevelopm
Prohibition Apinst Redeveloper'
and Assignment of A
Release and Indemnification COy
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Section 9.1. Events of Default Defwed ... . . . . . . . . . . . . . . . . . . . . . . . . . . . .. ,,~~
Section 9.2. Remedies on Default . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - .. ^:1~
Section 9.3. No Remedy Exclusive ................................... 20
. Section 9.4. No Additional Waiver Implied b One Waiver .. - . . . . . . . . . . . . . . . . . 20
Section 10.1. Contlict of Interests; AuthoritY
Liable . . . . . . . . . . . . . . . . . . . . . . . . - . . . . . - . . . . . . . . . . - . . . . - 21
Equal Employment Opportunity ............................. 21
Restrictions on Use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 21
Provisions Not Merged Wi1h . . . . . . . . . . . . . . . . . . . . . . . . . .. 21
Titles of Articles and Scclions .............................. 21
Notices ancl Demands .................................... 21
COllDte'rpartS ........... II . . " . II . . ~ . . .. . _ .. III " '" .. . . . .. . . .. . II . . .. .. . II 22
Recording ..... _ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 22
. ,. ;a'If~.a' ...)~.),,,,,,,
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resentatives Not IlIdividually
Te
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Section 11.1. Options to Terminate, Automatic
Tenn103uon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 23
Section 11.2. Action to Terminate ..................................... 23
Section 11-3. Effect of Tennination .,. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 23
TESTIMONIUM .... _ _ . . . . . . . . . . . . _ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - 24
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Section 1.1. Definitions. In this Agree ent, unless a different meaning clearly appears
from the context:
"Act" means me Housing anc1 Redevelop ent Authority Act, Minnesota Statutes. Sections
469.001 to 469.047, as amended.
"Agreement" means this Agreement, as e same may be from time to time modified.
ameu4ed. or supplemented.
"Authority" means the Housing and velopment Authority in and for the City of
Monticello. Minnesota, or any s&JCcoSSOr or assi
"Authorizing Resolution" means the resol tion of the City, substantially in the form of me
attached Scbedule C adopted by the Authority's d of commissioners to authorize the issuance
of the Note.
"City" means me City of Monticello,
SOUl.
"City Building Official" means the City uilding inspector.
"Certificate of Completion" means the c: . u:ation provided to the R.ec:ieveloper, or the
purchaser of any pan, parcel or unit of the Red velopment Properry, pursuant to SecUoll 4.4 of
this Agreement.
"ConstrUcUon Plans" means the plans, cifications, drawings and related documents on
the constrUCtion work to be pedonned by the eveloper on the Redevelopment PropertY which
(a) shall be as detailed as the plans. specificati ns. drawings and related docwnents which are
submined to the appropriate building officials f the City, and (b) shall include at least the
following for each building: (1) site plan; (2) fo .on plan; (3) basement plans; (4) floor plan
for each floor; (5) cross sectioDS of eacb (1 and width); (6) elevations (all sides); (7)
landscape plan and plans for all site impro\'cme tsA; and (8) such other plans or supplements to
the foregoing plans as the Authority may rea50 bly request to allow it to ascertain the nature
and qualitY of the proposed consnuction work.
"County" means the County of Wright,
"Ev~t of Default" means an action by the Redeveloper listed in Article IX of this
Agreement.
"Holder" me3n.S the owner of a Mangag .
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"MatUrity Date" means the date that ' e Note has been paid in full or temrinated,
whichever is earlier.
"Minimum Improvements" means the c nstrUCuon on the Redevelopment Propeny of a
^R~~;square foot grocery store and ~:' uare feet of other retail facilities.
"Mortgage" means any loan received m by the Redeveloper which is secured, in whole
or in part. with the Redevelopment Property which is a permitted encumbrance pursuant to
the provisions of Anicle V 111 of this Agreeme to and U1cludes the loan of any Housing Bonds
proceeds and documents relating to such loan any securitY therefor.
"Note" means 1J1e Taxable Tax Increm I Revenue Note set forth in Schedule C herew,
to be issued by the Authority to the Redevclo r.
"Parcel" means any parcel of the Red lopment Property.
"Project" means the Authority's Rec:ievlopment Project No. 1.
"Project Area" means the real propeny oc:ated wilhin the boundaries of the Project.
"Public Redevelopment Costs" has the eaning set forth in Section 3.2 hereof.
"Redeveloper" means B.B.f., Inc.. a
and assigns.
"Redevelopmellt Property" means the eal propertY c:iescribed in Schedule A of this
Agreement.
"aec:ievelopment Plan" means the Autho .ty's Project Plan for Redevelopment Project No.
1. as amendec:i March 10. 1997 and as it may fUrther amended.
"Stale" means the SuIIe of Minnesota.
"Tax Increment" means that portion of
to the Redevelopment Property anc:i which is r
to the Tax Increment Act.
"Tax Increment Act" Of "TIF Act" me
Stannes, Sections 469.174 to 469.179. as am
real propeny laXes which is paid with respect
.ned to the AuthoritY as taX increment pursuant
the Tax Increment Financing Act., Minnesota
"Tax Increment Disnict" or "TIF District means the Authority'S Tax lJ1crement Financing
District No. 1..22. a redevelopment taX increm t fmancing disuiet created by the City ana the
Authority.
"Tax IJ1C1'ement Pian" Or "TlF Plan" me
No. 1~22. approved March 10, 1997. and it m
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the Tax Increment Financing Plan for District
be amended.
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Costs
Section 3.1.
owned by the Redeveloper or a relate<1 entity.
the Redevelopment Property or any portion th
. The Redevelopment Propeny is cunently
Authority shall have no obligation to acquire
f.
. The Redeveloper shall demolish all existing
I relocate all existing tenants and occupants
.th Section 3.3 hereof. ',".'. ·
.....cost of demolition
relocation' ... n. .' """ -....... ,:"-'"'-~""-~""" , ml ' . .:
~, wiemer wilh 'Adminima:Jive COstS as d f'med hereafter, s1Wl be refened 10 baem as me
"Public Redevelopment COsts. " 111 order t make the development of the Minimwn
Improvements economically feasible, the Autho ty will reimburse tbeRedeveloper for the Public
Redevelopment CostS in the maximum amount of $~,OOO> in accordance with the tenDS of
Section 3.4 hereof.
Section 3.3. Relocation. (a) The Redev loper shall be responsible for the relocation of
all tenants and occupaDts of the Redevelop 1 Property, including me provision of any
relocation benefits and paymentS. The RedeY per shall ~ relocation consultant,
~f~ro~ed byhantbe ~u~~~> ^l ~tbe~~relo tionl benefitsp and paym~,~~,.~..~. ~~~~~.~
WAim m exc ge lor Wlli'U' re ocauol1....om e opment ropeny.
.~.......t: ,It' 'I~"", ."'''' .
(b) The Redeveloper shall provide the Authority wrinen agreements, in a fonn
approved by the Authority, from each owner andoccupaIU oCme Recievelopment Property, uncler
which such owners and OCCUpaDlS agree to be located. from the Redevelopment Property on
terms contained in the agreem.epts. In addition, the Redeveloper shall furnish to lhc Authority
a written certification from its ..' . .
(c) Without limiling the Rcdevelo Js oblipnons under Section 8.3 hereof. the
Redeveloper will indemnify, defend and hold haImless the Authority, the City. and their
governing body members, employees, agents and contraCtOrs from any and all claims for benefits
or payments arising aut of the relocation Of displ ement of any person from the Redevelopment
Property as a result of the implementation of s Agreement.
Section 3.4. in of Public d v 10 Co. (~rro finance reimbw-sement
of a poniOQ of the Public Redevelopment Costs the Authority shall issue and the Redeveloper
shall pwchase the Note in the _lprinc:ip amO\U1t of ~O.OOO in substantially the fonn
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set forth in the Authorizing Resolution as Schedule C. The Authority and the
Redeveloper agree that the consideration from Redeveloper for the purchase of the Note shall
consist of the Redeveloper's payment of me Pub ic Redevelopment Costs in at least the principal
amount of the Note. The interest rate on the N te shall ti 7.5%, and the fmal maturity of the
Note shall be no later than February 1. 2020.
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.me Authority shall deliver the NQ upon receipt from the Redeveloper of written
evidence satisfactol)' to the Amhority that the veloper has paid Public Redevelopment Casts
in at least the principal amount of the No . - ...... ,...-- ... .. ...... . ,.....".,........ .,~.."""..,
I.....,...
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Section 3.5. A sts. The Redeveloper agrees that it will pay
all Administrative CostS as hereafter clefined. For the purposes of this Agreement, the tenn
"Adminisuative Costs" means out of pocket co incurred by the Authority atuibutable to or
incurred in connection with the negotiation preparation of this Agreement and other
clocwnents and agreements in connec1ion wi the development contemplated hereWlder.
Administrative Costs shall be evidenced by i oices, statementS or other reasonable written
evidence of the costs incurred by the Au rity. The Authority acknowledges that the
R.ede~eloper has deposited with the Autho tY the amount of $5,000 for payment of
Atlminj!iltrative Costs. Upon issuance of the Certificate of Completion for the Minimwn
Improvements. the AuthoritY shall retUrn to the developer any balance of such deposit that the
AuthoritY reasonably determines is not lK:eded pay Administrative CoStS. Any Administrative
Costs paid by the Redeveloper are deemed Publ' Rede~elopment Costs and may be included in
the principal amoWlt of Note issued under Se . on 3.4 hereof. If at any time 1he AuthoritY
determines that AdmiDistrative Costs will exceed 5,000, the Redeveloper sball pay any additional
Administrative Costs within 10 days after recei t of a wrinen invoice from the Authority.
its representatives shall have the riallt at all
examine and copy all books and records of
ts, the Redevelopment Property and the Public
.
Section 3.6. Records. The Authority
reasonable times after reasonable notice to ins
Rtdeveloper relating to the Minimwn Improvem
Redevelopment COstS.
S.mU:>:>~2
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Jan-23-98 11:54pm From-KENNEDY & GRAVEN
6123379310
T-741 P.ll/18 F-143
to such previously approved ConstrUCtion PI
proposed change and notify the Redeveloper .
ConsttUction Plans shall, in any event, be de
rejected, in whole or in p~ by wrinen notice b
sening fOM in detail the reasons therefor. S
after receipt of the notice of such change.
change in the ConstrUCtion Plans will not be
the City Building Official shall approve the
writing of its approval. Such change in the
approved by the City Building Official unless
the City Building Official to the Redeveloper,
rejection shall be made within ten (10) days
City Building Official's approval of any such
nably withheld.
Section 4.3. . . Subject to Unavoidable
Delays, the Redeveloper shall commence co . on of the Minimum Improvements by ~
1. 1998. Subject to Unavoidable Delays, the Re veloper shall complete the conswction of the
Minimum Improvements by December 31, 19 8. All work with respect to the Minimum
Improvements to be constrUCted or provided by Redeveloper on the Redevelopment Property
sball be in confonnitY with the CollSltUCtion P as submitted by the Redeveloper and approved
by the Authority.
The Redeveloper agrees for itself. its s cessors and assigns, an4 every successor in
interest to the Redevelopment PropertY, Of an pan thereof. that the Redeveloper, and such
successors and assigns, shall promptly begin and diligently pro~te 10 completion the
development of the Redevelopment PropertY through the constrUCtion of the Minimum
ImproveIJlenl5 thereo~ and lbat such co tion shall in any event be commenced and
completed witmn lhe period specified in this CClion 4.3 of this Agreement. Subsequent to
conveyance of the Redevelopment Property, or y put thereof, to the Redc:veloper. and lmtil
constrUCtion of the Minimum ImprovCIDCDl$ been completed, the Redeveloper shall make
reports, in such detail and at such times as may easonably be requested by the Authority, as to
the actW1l progress of me Redeveloper with res to such constrUCtion.
Section 4.4. Cenificate of Co~pl~tioIL a) Promptly after substantial completion of the
MiAimum Impro\'ements in accordance wim tb se provisions of the Agreement relating solely
to the obligations of the Redeveloper to the Minimum Improvemems (including the
dateS for begil'lY'lil'lg and completion thereof). the Authority will fumish the Redeveloper with an
appropriate insIrument so cenifyiDa. Such . cation by the Authority shall be a conclusive
detennination of satisfaction and. teJ1tIi..,~rion of agreements and covenants in the Agreement
and in the Deed with respect to 1he obliptions of Redeveloper, and its successors and assigns,
to constrUCt the Minimum Improvements and the dates for the beginning and completion thereof.
Such certification and such detemJination shall t constiNte evidence of compliance with or
satisfaction of any obligation of the Rede\Teloper to any Holder of a Mortgage, or any insurer of
a Mortgage, securing money loaned to finance Minimum Improvements. or any part thereof.
(b) The certificate provided for in thi Section 4.4 of this Agreement shall be in. such
form as will enable it to be reconted in the pro office for the recordation of deeds and other
instruments pertaining to 'the RedevelopmcPl Pr peny. If the Authority shall refuse or fail to
provide any certification in accordance with the rovisions of this Section 4.4 of this Agreement,
the AuthoritY shall. within tbiny (30) days mer "tteJ1 request by the Redeveloper, provide lhe
Redeveloper with a wriuen statement, indic . g in adequate detail in what respects the
Redeveloper has failed JO complete the Minimwn provemcnts in accordance with the provisions
of the Aireement. or is otherwise in default. what measures or acts it will be nc:cessazy, in
SJB1355j.
MIU.90-67
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Jan-23-98 11:55pm From-~ENNEDY & GRAVEN
6123379310
T-741 P.12/18 F-143
ART CLE V
Section 5.1. Insurance. (a) The Re eloper will provide and maintain ~
~~~ all times cl . g the process of constrUcting the Minimum
ImprovementS an All Risk. Broad Form Basis I W'aDCe Policy and. from time tD time during that
period, at the request of the Authority, furnish e Authority with proof of payment of premiwns
on policies covering the following;
(0 Builder's risk insuranc: , written on the so-called "Builder's Risk -
Completed. Value Basis. n in an amo t equal to one: hWldrcd percent (100%) of the
insurable value of me Minimum Imp ovcmcnts at the date of completion, and with
coverage a\failable in nonreponmg fo on the so-called "all risk" form Qf policy. The
interest of the Authority 3hall be pfO in accordance with a clause in fonn and
content satisfactory to the Authority;
(ii) Comprehensive general' ility insurance (including operations. cOntingent
liability. operations of subcontraCtors. completed opemtions and contraCtual liability
insurance) together with an Owner's Co tractor's Policy with limits against bodily injury
and property damage of not less than 5 ,000,000 far each occurrence (to accomplish the
above-required limits, an umbrella exc liabilitY policy may be used); and
(iii) Workers' compensation' urance, with statutOry coverage.
(b) Upon completion of consttUCtio
Maturity Date, the Redeveloper shall maintain.
and from time to time at the request of the
premiums on, insurance as foUows:
(i) Wurance against loss
a pollcy or policies coveriDg such.
businesses.
of the Minimwn ImprovementS and prior to the
r cause to be maintained, at its cost and expense.
uthority shall furnish proof of the payme~lt of
or damage to the Minimum Improvements WIder
as are ordinarily insured against by similar
(il) Comprehensive general p blic liability insW"CUlCC:. including personal injury
liability (with employee exclusion dele ), ~ liability for injuries to persons and/or
propeny, in the minimum amount for occurrence and for each year of 51.000,000,
and shall be endorsed to show the A rity as additional insured.
(iii) Such other insurance. incl' . g workers' compensation insurance respecting
all employees of the Redeveloper. in uch amount as is customarily carried by like
organizatiollS engaged in like: activities 0 comparable size and liability exposure; provided
that the Redeveloper may be self~insur with respec;:t to all or any part of its liability for
workers' com~nsation.
SJS13SS,2
MNUQ-ij7
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Jan-23-BS 11 :55pm From-KENNEDV & GRAVEN
6123379310
T-741 P.13/18 F-143
ARTl LE X
dditional Provisio s
Section 10.1. n e .ves 0 di'
The Authority and the Redeveloper, to the best 0 their respective knowledge. represent and agree
that no member. official. or employee of the Au tit}' shall have any personal interest, direct or
indirect, in the Agreement, nor shall any such mber. official. or employee participate in any
decision relatini to the Agreement which affi his personal interests or the interestS of any
corporation. partnership, or association in whi h he is, direcdy or indirectly. interested. No
member, official, or employee of the Authority I be personally liable to the Redeveloper, Or
any successor in interest, in the event of any deft t or breach by the Authority Or COWlty or for
any amount which may become due to the eloper or successor or on any obligations under
the tenns of the Agreement.
Section 10.2. E ual Em 10 . . The Redeveloper. for itself and its
successors and assigns. agrees that during the constrUCtion of the Minimum Improvements
provided for in the Agreement it will complY 'm all applicable federal, state ancllocal equal
employment and QOQ.-discrimination laws and r gulations.
Section 10.3. Restrictions on Use. The developer agrees that until the Maturity Date,
the Redeveloper. and such successors and ass' . shall devote the Redevelopment Property to
the operation of the Minimum Improvements as a commercial retail facility and shall not
discriminate upon the basis of race. color. creed. x Or national origin in the sale, lease, or rental
or in the use or occupancy of the Redevelopmeu PropertY or any improvements erected or to be
erected thereon, or any pan thereof.
. None of the provisions of this
reason of any deed transferring any interest in
sball not be deemed to affect or impair the
Section 10.5. e c e . Any titles of the several partS. Articles, and
Sections of the Agreement are insened for conv 'ence of reference only and sball be disregarded
in con.s1rUing or interpreting any of its provisio
Section 10.6. Notices and Demands. cept as otherwise expressly provided in this
Agreement, a nouce. demand, or other comm cation under the Agreement by either partY to
the other shall be sufficiently given or delivered i it is dispatched by rCiistered or certified mail.
postage prepaid. return receipt requested. or deli ered personally; and
(a) in the case of the Redeveloper, s addressed to or delivered personally to the
Redeveloper at ]_!lfi:l'.G-n1b:i:1~4~it..;: .,' '"~"6'" '."-' . M. and
~;..~:tnt....,~~~ :Ie ~ ~~ ...... ~.," .~,
(b) in the case of the Authority. is addressed to or ddivered personally to the
Authority at 250 East Broadway. P.o. box 1147 Monticello. Minnesota 55362.
S.JB13S:>~4
tOlUO-'7
21
Jan-23-98 11 :55pm From-KENNEDY & GRAVEN
6123379310
T-741 P.14/18 F-143
.
REDEVELOP
PROPERTY
-- ."';;'" .... .""'"~'i!f"A.:~~~fti40ii0':d';,.;,ftt~
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Jan-23-9S 11 :56pm From-KENNEDY & GRAVEN
6123379310
T-741 P.1S/1S F-143
LEe
tion
HOUSING AND REDEVE OPMENT AUTHORITY
IN AND FOR THE CI Y OF MONTICELLO
RESOLUTION AWARDING THE SALE OF, AND
PROVIDING THE FORM, ERMS, COVENANTS AND
DIRECTIONS FOR THE IS VANCE OF ITS slt.OOO
TAXABLE TAX lNeREM REVENUE NOTE, SERIES
1998.
Section 1.
BE IT RESOLVED BY the Board of ommissioners ("Board") of the Housing and
Redevelopment Authority in and for the CitY 0 Monticello (the "AulhoritY") as follows:
1.01. A~ri7ation. The Authority CitY of Monticello ("City") have heretofore
approved the establishment of Tax Increment ing District No. 1-22 (the "TIF District")
wilhin Redevelopment Project No. 1 ("Project"), d have adopted a taX increment financing plan
for the purpose of fmancing cenain improvcm IS within the Project.
Pursuant to ldinnesota Statutes. Section 9.178, the Authority is authorized to issue iWd
sell its bonds for the pwpose of fiD~V('iDg a mon of the public development costs of the
~. Such bonds are payable from allot any portion of revenues derived from the TIF
District and pledged to the payment of the bonds. The Authority hereby fmds and determines that
it is in the best interests of the AuthoritY tha it issue and sell its $^l{I.OOO Taxable Tax
Increment Reveuue Note. Series 1998 (the ''No e") for the purpose of fInancing certain public
costs of the Project.
1.02. e The Authority hereby delegates to the
Executive Director the ~tion of the te on which the Note is to be delivered, in
accordance with that certain Contract for Priva e Development between the Authority and the
Owner dated . 1998 (the "Agreem t"). The Note shall be sold to B.B.F., Inc. (the
"Owner"). The Note shall be dated as of the Ie of delivery thereof and sball bear interest at
the rate N6P _5% per annwn 10 the earlier of aturitY or prepaymentA The AuthoritY shall
receive in exchange for the sale of the Note agreement of the Owner to pay the Public
RedevelopmCIlt Costs as defined in the Agreem t.
Section 2. Form of Note. The Note I be in substantially the following form, with
the blanks to be properly ruled in and the prine' al amount. interest rate and payment schedule
adjusted as of the date of issue:
S.D13SS11.
HNUD-67
C 1
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Jan-23~98 11 :56pm From~KENNEDY & GRAVEN
6123379310
T-741 P.16/18 F-143
UNITED STA OF AMERICA
STATE OF ESOTA
COUNTY f WRlG1IT
HOUSING AND REDEV LOPMENT AUTHORITY
IN AND FOR THE CI OF MONTICELLO
No. R-l
$~.OOO
TAXABLE TAX INC
SERlE
~
^Tlr/a
Date
of Ori2inal Issue
The Housing and Redevelopment Au ority in and for the City of Monticello (the
"Authority"). for value received, cmifies that it i indebted and hereby promises to pay to B.B.f"
Inc. or registered assigns (the "Owner"). the rineipal sum of $400,000 and to pay inlercst
thereon at the above-staled rate. as and to the I set fanh herein,
1. Pavments. PriI1cipal and. interes ("Payments") shall be paid on August 1. 2000
and each February 1 and AugllSt 1 lhercaftcr to and including Febnwy 1. 2020 ("Payment
Dates") in the amounts and from the sources t fonh in Section 3 herein.. Payments shall be
applied fim to accrued interest, IDd then to un . d principal.
Payments arc payable by mail to the ess of the Owner or SLJCholher address as the
Owner may designate upon 30 days written no ce to the Authority. PaymCDts On this Note are
payable in any coin or currency of me United wes of America which, on the Payment Date,
is legal tender for the payment of public anc1 p 'vate debts.
2. Interest- Interest at the rate
commencing on the date of original issue. In
360 days and charged for actual days princip
original issue to the first Payment Date shall
August 1 of each year and added to principal.
herein shall accrue on the awpaid principal,
est shall be comp"ted on the basis of a year of
is unpaid. Interest aceruing from the date of
compounded semiannually on February 1 and
3. Available Tax Incre~nt. Paym n15 on this Note are payable On each PaYI1\Cl1t
Date in the amOWlt of and solely from "Availa Ie Tax Increment." which shall meant on each
Payment Date, the Tax Increment attributable the Redevelopment PropertY and paid to the
Authority by Wright County in me six months p eceding the Payment Date. all as such termS are
defmed in the Contract for Private Develop between the Authority and Owner dated as of
. 1998 (the "Agreement"), subject t 1he following limitations and conditions:
liI.J'ilU$SIl~
to'/UlO.fj7
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Jan-Z3-98 11 :56pm From-KENNEDY & GRAVEN
61Z3379310
T-741 P.17/18 F-143
.
(a) Available Tax Increment does not- lude the rust 10 percent of Tax Increment
received by the Authority during such si -month period, which amount may be retained
by the Authority and is not pled.ged to e Note;
(b) Avoailable Tax Increment does not inc ude the next $45,000 in Tax Increment received
by the Authority during such six-month period. which amowlt may be retained by the
Authority a.nc! is not plcdge4 to the No ; and
(c) Available Tax Increment includes
Authority during such six.month period
(b) above; and
^
Available Tax Incremel1t sball not iDel any Tax Increment if, as of any Payment Dilte.
there is an uncured Event of Default under Agreement. The Aumority shall have no
obligation to pay principal of and interest on s Note on each Pilymcnt Date nom any source
other tban Available Tax Increment 'II1d. the fail; C of the Authority to pay the entire amount of
principal or interest OD this Note on any Pa t Date shall not constirute a default hereunder
as long as the Authority pays principal and . terest hereon to the extent of Available Tax
IncremenL The AuthoritY shall have no oblipti to pay unpaid balance of principal or accrued
interest that may remain afcer the final Payrnen on February 1.2020.
.
The Authority makes no warranty or rep seutation that Available Tax Increment will be
sufficient to pay all or any portion of the p. 'pal or interest on this Note. The A1Ubority's
calculation of Available Tax Increment shall be conclusive.
4. OJ)rlonal Prepavment. The prine pal sum and all accrued interest payable under
this Note is prepayable in whole or in pan at y time by the Authority without premium Or
penalty. No putial prepayment shall affect the ount or timing of any other regular payment
otherwise required to be made UJUier this Note-
5. Tennination. At the Authority s option, this Note shall tem1inate and the
Authority's obligation to make any payments this Note shall be discharged upon the
QCcuaence of an Event of Oefault on the pan 0 the Developer as defined ill Section 9.1 of the
Agreement, but only if the Event of Default not been cured in accordance with Section 9.2
of the Agreement.
.
6. Narure of Obli2ation. This Note is one of an issue in the total principal amount
of $^!QP.,OOO. all issued to aid in financing - public development COSTS and administrative
costS of a Project undertaken by the Authority P suant to Minnesota Statutes. Sections 469.001
through 469.047, and is issued pursuant to an authorizing resolution (the "Resolution") duly
adopted by the Authority on ~ 1998. and pursuant to aDd in full conformity with the
Constitution and laws oflhe Swe of Minnesota, including MiWlesom. Sm.nltes. Sections 469.174
to 469.179. This Note is a limited obliption f the Authority which is payable solely from
Available Tax Increment plcdgea lO the payment hereof under 1be Resolution. This Note and the
interest hereon shall not be deeme4 to constitu a general obligation of the State of Minnesota
or any political subdivision thereof. including. wi ut limitation. the Authority. Neither the State
s.J1l13S5$2
MN190-67
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Jan-23-98 11:57pm From-KENNEDY & GRAVEN
6123379310
1-741 P.18/18 F-143
of Mmnesora. nor any political subdivision th eof shall be obligated to pay the principal of Or
interest on this Note or other COSts incident h em except out of Available Tax. Increment. and
neither the full faith and credit nor the taxing wer of the State of MinneSOla or any political
subdivision thereof is pledged [0 the payment 0 the principal of or interest on this Note or other
costs incident hereto.
7. Re;llistration and Transfer. 1bi Note is issuable only as a fully registered note
without coupons. As provided in the Resolu 'on, and subject to cenain limitations set fonh
therein, this Note is transferable upon the boo of the Authority kept for that purpose at the
principal office of the Authority, by the 0 hereof in person or by such Owner's anorney
duly authorized in writing, upon sWTender of . s Note together with a written instrument of
transfer satisfactOIy tD the Authority, duly cured by the Owner. Upon such transfer or
exchange and the payment by the Owner of an. taX., fee, or governmental charge requirecl to be
paid by the Authority with respect to such tr er or exchange, there will be issued in the name
of the transferee a new Note of the same aggreg Ie principal amount, bearing interest at the same
rAte and. maturing on me s:une dates_
This Note shall not be transferred to an person other than an affiliate, or other related
entity, of the Owner unless the Authority has en provided with an opinion of counselor a
certi:ticate of the tranSferor, in a fonn satisfacto to the Authority, that such transfer is exempt
from registration and prospectUs delivery req' ments of federal and applicable State securities
laws.
IT IS HEREBY CERTIFIED AND REel
by the Constitution and laws of the State of .
perfonned in order to make this Note a valid
according to its tenDS, !Jave been dom; do exist.
fonn, time and manner as so required.
ED that all acts, conditions, and things required
SOta to be done, to exist, to happen, and m be
binding limited obligation of the Authority
ve happened, and have been performed in due
IN WITNESS WHEREOF, the
Redevelopment Authority in and for the City of
with the manual signatures of its Chair and Ex
Issue specified above.
of Commissioners of the Housing and
onticello has caused this Note m be execUled
utive Director, all as of the Date of Original
Housing and Redevelopment Authority In
and for the City of Monticello
Executive Director
Chair
6J'i135592
MN190-67
c
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.
HRA AGENDA
FEBRUARY 4, 1998
5.
nsideration to a r I vel of TIF assi
Development Consultants.
for tax credi
A. Reference and Background:
At the January 26, 1998, City Council meet" g, the council members accepted the
purchase offer of$300,000 and the RFP fro Freedom Development Consultants, Inc. for
development of multi-housing on Outlot A, ountry Club Manor. The proposal consists
of a mix of 36 affordable-rental units (2 and 3 bedroom) and 42 market-rate townhouse
units that would be for sale to private own s. David Bell, Freedom Development
Consults, is preparing a tax credit applicatio to meet the application deadline date of
February 12, 1998. An applicant can receiv up to 10 points if the project receives 20%
local participation which is generally throu TIP assistance. Therefore, is the HRA
requested to consider approving a level of assistance. You will not consider
authorizing the HRA financial and legal con ultants to begin preparation for establishment
of a TIP Housing District unless Freedom's ax credit application is approved for funding.
The RFP has yet to be reviewed by the Plan ing Department.
As you recall the purchase offer in the RFP affordable rental and for sale market-rate)
from Freedom Development as viewed by t e BRA and presented to the Council was
$151,675 for Outlot A. The purchase offer as raised by Freedom to $300,000. The
other RFP (market-rate rental) viewed by t BRA and presented to the Council from
David Hornig included a purchase offer of 300,000.
Proposed Proiect:
At the BRA meeting of January 7, 1998, th commissioners made a motion of willingness
to provide assistance for an affordable hous' g project on Outlot A.
* TIP Housing District - must satisfy the 10 and moderate income level for Wright
County.
* "Qualified Housing District" - must satisf both the low and moderate income and rent
levels. The benefit of a "qualified housing . strict" to the city is the HACA Penalty is
exempt.
* Within TIP Housing District - 36 rental .ts (2 and 3 bedroom units). Construction to
commence mid-summer 1998 subject to A approval.
* Within Project Area - 36 rental units and 2 market-rate townhomes with a purchase
value of $90,000 to $120,000. First twelve units of market-rate to commence
construction in spring 1998 or in conjunctio with sales progress.
* Parcel description - Outlot A, Country CI b Manor.
1
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.
.
HRA AGENDA
FEBRUARY 4, 1998
* The RFP suggest TI be used to repay th City for per acre storm sewer charge,
installation of sidewalks along 7 Street, an per acre price of 1.73 acre city park. WSB,
the city engineer, is running estimates on t ese costs.
* Mark Ruff is running tax increment proje tions for the 36 rental units.
The level of assistance will be determined fier consideration ofthe TI generated and the
suggested expenditures within the RFP or ligible expenditures. It is my understanding
the HRA will be requested to approve two standard resolutions for tax credit application.
At this time, I have not received any new i formation from David Bell since the Council
accepted Mr. Bell's RFP and purchase pric of$300,000.
B. Alternative Action:
1. A motion to approve level of TIP a sistance in the amount of for
tax credit application of Freedom D velopment Consultants. Proposed
development of 36 low and modera e income level rental units (2 and 3 bedroom).
2. A motion to deny TIP assistance fo tax credit application of Freedom
Development Consultants.
3.
A motion to table any action.
C. Recommendation:
For consistency, please review the propos development against the Local TIF Policy for
compliance. No recommendation is given ithout TI projections and a line-item list of
eligible TIP expenditures.
D. Supportint; Data:
Excerpt of the RFP as viewed by the HRA d City Council and TIP Policies.
2
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DEVELOPMENT CONCEPT
SITE PLAN
The intent of the Development Team is 0 develop the entire Outlot A parcel
of approximately 16.6 acres into three mai entities.
The First Section of the development i to be a 36 unit Rental Townhome
complex called Park Side Court Townhom s, comprised of six (6)~six unit
buildings. Each building will consist of 2 e d unit 1 story homes of
approximately 1000 sq. ft. for the 2 bed roo units and approximately 1100 sq.
ft. for the 3 bedroom units. The center 4 units will be 2 story homes of
approximately 1085 sq. ft. for the 2 bed roo I units and approximately 1250 sq.
ft. for the 3 bedroom units. There will be a oncentration of approximately 2/3 to
1/3,mix of which the 3 bedroom units are t e greater. The town homes will all
have 1 attached garage per each unit and 6 additional off street open parking
spaces for a 2.55 spaces per unit off street parking ratio. All town homes will
have 1 1/2 or 2 full bathrooms and utility ro ms with washer and dryer. Each
unit will have patio doors exiting onto a ext rior concrete patio open to the
center courtyards with playground equipm nt. Kitchens are fully applianced
including dishwashers. All windows will b covered with matching window
blinds.
The Second Section of the developme t is to be a 42 unit owner occupied
For Sale town home complex called Pine Vi, w Estates. This complex is
comprised of seven 6 unit buildings. Withi each building will be 3 unit types.
The center 2 units will be 2 story 2 and 3 b droom styles with 1 attached
garages. The square foot range from 1100 to 1300 sq. ft. The second to each
end units will also be 2 story 3 bedroom st Ie with vaulted ceilings and double
attached garages. The square feet range fom 1050 to 1250 sq. ft. All For Sale
townhomes will have gas forced~air furnac s with optional central air
conditioning and fully applianced. The off treet parking besides the unit
garages will be 88 parking stalls for and off street parking ratio with garages of
3. 76 stalls per unit.
The Third Section is the dedicated park area of 1.73 acres at the east side of
the development. Both the Rental and For Sale sections will also have their
own separate open park area with recreati nal playground equipment.
The Storm Water Detention Ponding ar a is continious from west flowing to
the east ajacent to the 7th Street South rig t of way with culvert piping under all
driveways for balanced frow without overtl wing each separate pond area.
Easements if needed will be granted to the City of Monticello for these areas.
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1. All setbacks meet or exceed R-3 for PUD oning requirements. The 36 unit
Rental Complex has a 7 units per acre densit and the 42 unit For Sale
Complex has a 5.3 units per acre density whi h is less dense than required in
R-3 or PUD zoning.
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2. All drives are private and maintained b owners associations and off
street parking exceed city requirements. The total of 5 street accesses are
needed, 3 for Pine View Estates and 2 for Pa k Side Court Townhomes.
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3. Location and screening is to be deter ined when landscape plan is
finalized.
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4. To be determined by Postmaster and d veloper, the locations of the
mailboxes, will give the most effective servic while keeping the clusters
incorporated in the landscape plan.
5. A five foot concrete sidewalk will be co structed along 7th Street for the
length of the proposed housing.
6. Freeway noise mitigation is to be achi ved by a 40 ft wide berm at the
base with a 3 to 1 side slope to a vertical top of approximately 5 feet above
grade with approximately a 10 to 12 foot tabl; top. Transplanted Contiferios
Pine trees, 4" to 6" caliper, will be placed di gonally in a double row
approximately 25 to 30 feet apart on top of t e berm. We feel this will achieve a
pleasing view as well as a dense visual scr ening and hopefully a good sound
screening from 1-94.
7.See site plans for plantings. Both Rent I and For Sale units will have
central lawn sprinkler systems and totally so ded common areas.
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8. As per site plan, 1.73 acres will be dedicated to the City for public open
areas. Each complex privately will also hav their separate common areas with
recreational playground equipment.
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9. All City utility mains are located in 7th Street to our best knowledge and
the only service connections are the latteral sewer service of 6" and 1 1/2" water
service per 6 plex building in Park Side Cou Townhomes. The For Sale units
in Pine View Estates will each have a 4" se er service with a 1" water service.
The fire protection we recommend is a Fire ydrant by each entrance of Park
Side Court Townhomes and one in the cent r of the complex at the rear of the 2
center buildings south of the loop road. In ine View Estates we also
recommend a Fire Hydrant by each entranc on Pine Tree Court and a Fire
Hydrant at the rear of Pine Tree Circle.
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10. We propose to purchase the entire site utlot A of Country Club Manor.
We would negotiate with the City on sharing c sts to develop pond areas and
city park, or utilize TIF for these improvements.
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11. Phase I which is the 36 rental units of P rk Side Court Townhomes will
be started hopefully mid-summer based on th approval of a Tax Credit
allocation from the Minnesota Housing Finace Agency. The development will
be submitted to MHFA for approval first round 1998 in early February.
Phase II, the first 2 buildings, (12 units) of Pin View Estates will commence
marketing early spring 1998 and construction tarts in conjunction with sales
progress thru Phase 3 and 4.
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Building Design
1. For floor plans, unit plans, and project site plans see detailed sections as
follows
A. Park Side Court Townhomes
B. Pine View Estates
2. Both complexes will utilize a maintenan e free exterior including vinyl
c1added windows, steel siding and soffit. Ste I raised panel garage and entry
doors. Fiberglass fire retardant shingles.
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3. Both complexes will utilize a staggere double stud party wall or 2
separate wall structures between units which continue thru to the roof deck
between each unit.
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4. See architectural plans in following see ions A & B
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SECTION D: FINANCING
1). CONCEPT FOR FINANCING
Construction and permane
through Zapp National B
Bank has provided the fi
developments completed t
t financing will be provided
, St, Cloud. Zapp National
ancing for nwnerous similar
e by the development team.
For sale townhomes:
Construction financing w'll be provided through Zapp
National Bank, St. Cloud. As stated above, Zapp
National Bank has financ d Dl.unerous similar
developnents for the de~ lopment team. Permanent
mortgage will be provide by the purchasers of the
townhomes utilizing lend rs of their choice.
Description of ownership:
TIle rental townhanes wil be owned by a Minnesota
Limited Partnership. The General Partner will be a
Minnesota Limited Liabil ty Company with members
(owners) from Lumber One Avon Inc., Podawiltz
Development Corporation nd or Freedom Development.
Initial rents:
The initial rents for th moderate incofiE townhomes are
estimated to be $550 per month for the 1,085 square
foot two bedroom townhom and $625 per month for the
1,250 square foot three edroom townhomes. The rent for
the townhomes include the attached single stall garage
and individual washer an dryers in each unit. Please
refer to page one of the roforma included in this
section for a more comple e descri~tion and to the
plans included in the bui ding deslgn section for a
pictorial description.
.. 2). FORM OF FUNDING SUBSIDY
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The moderate income renta
tax credits as an equity
size and the rents.
townhanes will be utilizing
ource to reduce the mortgage
For sale townhomes:
It is not anticipated tha any fO~lTI of subsidies will
be utilized by the develo ment team. Individual
purchasers may utilize mo tgage sources such as VA,
FHA, FNMA or MHFA for the r respective mortgages.
1
. Page 2
3) .
M
Tenants income adjusted for size cannot exceed
30% of 60% of medlan income for Wright County. The
incomes are established ann ally by the federal
government.
Rents are limited to 30% of 55% of the adjusted annual
incon~s noted above. Pleas refer to the page 6 of the
proforma in this section specifics.
For sale townhomes:
Their are no anticipated re
subsidies on the for sale t
resulting from
.
The development team does
subsidy of tenant rents.
anticipate any direct
f;
For sale townhomes:
Not Applicable.
4) .
Moderate income ren
The maximum is established by Section 42 of the IRS
regulations which restrict occupancy to individuals or
families with family incom saver 60% of the median
income for the county in wlich the development is
constructed.
For sale townhomes: .
The only antici~ated restr'ctions would be those
imposed by the lndividual urchasers lender of choice.
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The minimum is established by policy of the development
team which requires the te ants income to exceed the
monthly rent by 2.3 times.
Please refer to page 6 of he proforma in this section
for the current maximum te ant income limits.
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5). MARKET AREA
Market data and experien ial history indicates that
approximately 75% of the tenants will come form the
irnl~diate Monticello are . lhe balance of the tenants
will be new Monticello a ea residents that typically
move for reasons of empl yment.
For sale townhon~s:
Market data and experien ial history indicates that the
majority of purchasers w'll be from the Monticello
area. The balance will b new Monticello residents that
move for reasons of empl ~nent, life style chan~es,
locational consideration and based on the quallty of
the townhome product.
6) .
The development team is roposin~ to install the
retention pond with no c st sharlng with the City of
Monticello. The developm nt team respectfully requests
that the City waive the er acre trunk storm sewer
charges.
PLEASE NOTE: The develoI? ent team suggests that the
City of Monticello utill e pay-as-you-go tax increment
financing to repay itsel for the per acre storm sewer
charge, the installation of the sidewalks on 7th Street
and for the per acre Ian price for the 1.73 acre
city I?ark. The repayment would be economically
beneflcial .to the Clty a d would be of assistance to
the I?roje~ts selection f r tax credits by the Minnesota
Houslng Flnance Agency.
- 7). PURCHASE PRICE OFFER
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Appraised price per acre:
Total acreage:
Park Acreage:
Development & Pond Acrea e:
Offering Price:
14.87 x 10,20
$10,200.00
16.60
1.73
14.87
$151,675
CONSTRUCTIONIDEVELOPMENT COSTS
PAGE 4
.
Development: Park Side Court Towhome
Location: Monticello, Mn.
As Of: Feasibility
DATE:
REVISED:
FILE NAME:
12/09/97
0.00
m/Monti1
CONSTRUCTION COSTS:
------------------------------ -------------------- ---------------------------------------
------------------------------ -------------------- ---------------------------------------
Construction Contract ·
Contrator Profit,OHD, and Gen. Rqmt.
Current Construction Contract
Est'd Additional Construction
Gross Construction Contract
LESS: Amounts Paid by Land Seller
Est'd Construction Contract
FEES:
WAC (Water Access Charge)
Surveys & Soil Tests
Architectual & Engineering
Project Administration
Legal & Accounting
Non-Profit Fee
Developer Fee
.ndication Fee
lopment Services Fee
Credit Fees
Appraisal
Marketing Expenses
Furn., Fix., & Equip.
Contingency
City SAC, Engineering, & Attorney Fee
Total Fees
FINANCING & CARRYING CHARGES:
Construction Interest; (BFLP)
Construction Interest; (ZNB)
Insurance
Origination Fee (Construction Loan)
Origination Fee (End Loan)
Title & Recording
Real Estate Taxes
Total Financing & Carrying Costs
LAND
xx
. TOTAL DEVELOPMENT COSTS
Gross
COs.ts.
$2,024,000
100,000
2,124,000
40,000
2,164,000
N/A
2,164,000
72,000
7,500
28,400
o
35,000
o
400,476
o
o
16,000
3,000
7,200
3,600
100,000
o
673,176
o
60,000
1,500
36,000
o
12,150
3,500
113,150
52,530
o
$3,002,856
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LG...B..as.is.
2,024,000
100,000
2,124,000
40,000
2,164,000
o
2,164,000
72,000
7,500
28,400
o
17,500
o
400,476
o
o
o
3,000
o
3,600
50,000
o
582,476
o
60,000
1,500
36,000
o
9,113
3,500
110,113
$2,856,589
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SOURCES AND USES OF CASH
PAGE 5
DATE:
REVISED:
FILE NAME:
12/09/97
0.00
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Development: Park Side Court Towho
Location: Monticello, Mn.
As Of: Feasibility
- ~============================= ================== =========================================
SOURCES AND USES OF FUNDS:
----...--.....----..--......-----...-----.............-----.........--
-\
SOURCES:
General Partner -Contributed Capital
LP - Net Contrib. Capital (@.68)
First Mortgage - ZNB
Equity -
BFLP - Interim Interest
BFLP - Fees
Gross
Method
$282,281
1,553,000
1,167,575
...'
xx
xx
xx
xx
o
o
o
o
o
o
Total Sources of Funds
3,002,856
USES:
Total Development Costs
(3,002,856)
ADDT'L FUNDS PROVIDED 1 (NEED)
$0
-----------
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<<TC LP EQUITY ASSUMPTIONS:
ELIGIBLE BASIS (100%)
Allocation Basis Over 1 (Under)
BENEFICIAL ELIGIBLE BASIS
IRS Applicable Rate
ANNUALLlHTC
# of Years of Benefit
Maximum
AIIQQated
$2,856,589
o
Un:!Jsed
N/A
$0
---......_------.._----- ------......_----........_--
2,856,589
8.45%
o
9.00%
------.........._---....._-- ........-----........-----....-
241,382
10
(8,618)
10
----.........-----......-...--- ....-----.....------.....--
TOTAL L1HTC 2,413,817 (86,182)
LP's Percentage 0.99 0.99
LP'S SHARE OF L1HTC
Price Per L1HTC Sold
.........----.......-- ---......... ---..........._----........._--- ...-----.........------.........-
2,475000 2,389,679 (85,321)
0650 0.650 0.650
ASSUMED L1HTC VALUE
...------.........-- ---...-.... ----.........._----........._--- ...-------...-------......-
$1,608750 $1,553,291 ($55,458)
------- --- ----------- --------~--
------- --- ----------- -----------
SAY $1,609000 $1,553,000
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INCOME, RENT, AND UTILITY ALLOWANCES
PAGE 6
Development: Park Side Court Towhomes
Location: Monticello, Mn.
==~====================::~f::::::~::==============
INCOME, RENT, AND UTILITY ALLOWANCES
Source: Metro Counties 57,300 Effective 02/10/97
(Based On Project Specific Utility Configuration)
Wright County
One Person
Two Person
Three Person
Four Person
Five Person
Six Person
. House Type Units:
Heating/gas
Cooking/Electric
Electric
Water Heating/Gas
Totals:
Two Bdr
Three Bdr
.
DATE: 12/09/97
REVISED: 0.00
FILE NAME: m/Monti1
-------------------------------------
-------------------------------------
QUALIFYING
lNCQMEBESTRICIIQNS
$24,0 0
$27,4 0
$30,9 0
$34,3 0
$37,1 0
$39,9 0
UJILlLULLQWANCESJ-
$ 5
------ -
------ -
PRQPOSED_RENJA~EB FICATIQNS
Gross Less: Ut: lity
B...ents. All owa n s
$645
$745
Ihre~B.dr
$42
$6
$30
$11
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Maximum
NetR--.ents
M..axLrnymGmss Re.nts.
@ 50% AMI
Two Bdr $645
Three Bdr $745
Metro HRA
$89
Proposed
Re.nJs.
570
656
$550
$625
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HOUSING AND REDEVEL PMENT AUTHORITY
City of Mo
TAX INCREMENT FI
program purpose: The Monticel 0 Housing and Redevelopment
Authority will utilize Tax Incre ent Financing to support the
community's long-term economic and housing goals.
Policy Considerations: The HRA will analyze and evaluate Tax
Increment Financing proposals ba ed upon the following policy
considerations. Each project sh 11 be measured against these
considerations and the project's v lue shall be determined, based
upon meeting these considerations.
1. The project shall be consiste t with the City's Comprehensive
Plan.
2. The project shall demonstr te long-term economic and/or
housing benefits to the comm nity.
3. The project shall create and/or retain employment for
Monticello residents.
4.
The proj ect shall increase mo erate priced housing options for
area residents.
5. The project shall facilitate the redevelopment or elimination
of "substandard" or "blighted" areas as determined by the HRA.
6. The project shall facilitate he "clean-up" of environmentally
unsound property.
7 . The proj ect shall provide add' tional public funding for public
improvements including utili ies and/or park development which
would not otherwise be avail Ie.
8.
to promote additional desired
The project shall be deeme
"spin-off" development.
9.
The proj ect shall demon
including demonstrated degr
a) Local residency of the
b) Local residency of t
project, or
c) Membership in local bu
d) Other similar factors.
trate" "community involvement"
es of the various factors:"
ompany's owners and employees,. or
e ~contractors involved in the
organizations, or'
.
.
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HRA AGENDA
FEBRUARY 4, 1998
6. Considerati n h irection taken b th
consideration of HRA action if necessary
A. Reference and Background:
The small group of Council member Bruce .e1en and Brian Stumpf and HRA
commissioner Brad Barger and Steve Andr ws met on Friday, January 30 to study the
design and financing of the Community/N Training Center. Additionally, in attendance
was two architects from AKA, Inc., the fin ndal consultant from Ehlers & Assoc., Rick
Wolfsteller, Jeff O'Neill, and Ollie Koropc . After much discussion, the small group
set a follow-up meeting date of February 4,3:30 p.m. No direction or recommendation
has been made by the small group to date.
Any action for consideration by the HRA a this meeting is subject to the direction ofthe
follow-up meeting of February 4.
1
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HRA AGENDA
FEBRUARY 4,1998
7.
thorize
n
A Reference and Background:
Recommendation is to authorize payment 0 HRA monthly bills with the exception of
Kennedy & Graven bill for the proposed ory.
----
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Monticello HRA
PO Box 11 7
Monticello MN 55.62-9245
January 12, 998
MALL REDEVELOPMENT
MC100-23
12/3/97 MTR Discussions on Mall with Ollie
MTR Run new numbers
MTR Meeting with HRA on Cub
12/4/97 MTR Discussions with Oliie/Rusty/S.B.
MTR Work on memo for Mall evaluation of reque t for TI
12/5/97 MTR Analysis for tax increment and discussions ith Brad J.
12/10/97 MTR Meeting on Mall
12/11/97 MTR Discussions with Ollie
Total Due This Month:
Previous Balance:
12/29/97 - Payment - thank you
.
Total Balance Due:
.
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Hours Amount
0.25
1.50
3.00
0.75
1.75
2.25
3.25
0.25
26.25
157.50
315.00
78.75
183.75
236.25
341 .25
26.25
13.00 $1,365.00
$157.50
PLEASE KEEP WHITE COpy FOR YOUR FILE A 0 REMIT PINK COpy WITH PA YMENT TO:
EHLERS & ASSO IATES, INC.
3060 Centre Po nte Drive
Roseville, MN 5 113-1105
(612) 697- 500
($157.50)
$1,365.00
--_.,--_.~-'-
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KENNEDY & RAVEN
.
Chartere
200 South Sixth Stre t, Suite 470
Minneapolis, M 55402
(612) 337- 300
City of Monticello
Ollie Koropchak
City Hall
P.O. Box 1147
Monticello, MN 55362-9245
MNI90-00067: Mall Redevelopment
January 12, 1~ ~y
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Invoice # 21597
Through December 31, 1997
For All Legal Services As Follows:
.
12/1 0/97 SJB Review Ruff letter; atte d HRA meeting 3.50 469.00
12/22/97 SJB Phone call with 0 Koro chak re contract; begin 1.00 134.00
same
12/29/97 SJB Contract drafting 1.00 134.00
12/30/97 SJB Draft contract 0.75 100.50
12/31/97 SJB Work on contract 1.00 134.00
Total Services: $ 971.50
Attorney Su mary
Stephen 1. Bubul 7.25 @ 134.00/hr
971.50
Total Services And Disburse ents: $
971.50
.
.
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KENNEDY & RAVEN
Chartere
200 South Sixth Stre t, Suite 470
Minneapolis, M 55402
(612) 337- 300
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January 12, 1998
City of Monticello
Ollie Koropchak
City Hall
P.O. Box 1147
Monticello, MN 55362-9245
Cj: ,I~
MN190-00066: Community Center Financing
Invoice # 1595
Through December 31, 1997
For All Legal Services As Follows:
11/07/97 KJK Research for D Greens eig re bonds and national
guard; research at libr y
11/10/97 KJK Research at William M tchell on legal trac and in
tax section; research fo D Greensweig re National
Guard and bonds; com uter research; calls to
agencies
11/11/97 KJK Research for D Greens eig re binds and National
Guard; begin research emo on above issue
11/12/97 KJK Work on memo for D reensweig re National
Guard; phone call to A mory Commission
11/13/97 KJK Research re armories fi r D Greensweig
11/14/97 KJK Memo for D Greenswe g; meet with Dan re memo
11/19/97 DJG Research armory bond axability
11/25/97 DJG Attend armory task for e meeting
12/03/97 BMB Intraoffice conference ith D Greensweig and R
Fifield
12103/97 DJG Meeting with B Batters n and R Filietd re itinerary
options
12/16/97 DJG Travel to and attend co unity center financing
meeting
12/17/97 DJG Prepare first draft of fi ancing memo legal issues
12/18/97 DJG Draft letter of agree me t among HRA organization
and Armory Board
12/22/97 DJG Draft preliminary cleve opment agreement
12/23/97 DJG Draft memo to HRA re lease/purchase implications
12/24/97 DJG Draft preliminary deve opment agreement
12/30/97 DJG Review correspondenc from R Fralick; finalize
preliminary developme t agreement
12/30/97 DJG Attend task force meefng re community center
12/31/97 DJG Phone call with T Pal er; draft letter to B Johnson
re preliminary develop ent agreement
Total Services:
6.00 390.00
7.00 455.00
4.00 260.00
1.00 65.00
2.00 130.00
2.00 130.00
1.80 189.00
3.10 325.50
1.00 139.00
1.20 126.00
3.90 409.50
1.80 189.00
2.70 283.50
1.80 189.00
2.80 294.00
1.60 168.00
1.10 115.50
4.80 504.00
0.30 31.50
$ 4,393.50
Continued on Next Page
.
KENNEDY & RAVEN
Chartered
200 South Sixth Stree , Suite 470
Minneapolis, MN55402
City of Monticello
Ollie Koropchak
Page 2
MN190-00066: Community Center Financing
Attorney S ary
Bruce M. Batterson
Daniel J Greensweig
Kim 1. Kantorowicz
For All Disbursements As Follows:
.
11/07/97
11/10/97
12/16/97
12/30/97
12/3 1/97
12/31/97
12/31/97
I .n. undl!r pen~!~,y of I1w
th,.. ,,"., acccun!, d<:im 0, d"r:13nd
is just <lrcd co ct and that no parI
of it has aid.
Photocopies
Photocopies
Travel expense (DJG)
Photocopies
Fax
Photocopies
Postage
Total Disbursements:
Total Services And Disburse ents:
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1.00 @ 139.00/hr
26.90 @ 105.00/hr
22.00 @ 65.00/hr
139.00
2,824.50
1,430.00
$
2.00
0.00
18.91
0.00
0.00
0.00
1.50
22.41
$
4,415.91
.
.
.
HRA AGENDA
FEBRUARY 4, 1998
8.
a) 225 River Street West - The Purchase Agr ement between the lIRA and l1win Hawkins
has been executed by both parties and the sel er is updating the abstract in anticipation of
closing prior to May 1, 1998. Purchase pric $55,700 plus closing costs. It has been the
intent of the HRA to demolish this property erefore anticipate additional costs for
demolition.
b) 3 Walnut Street - Title has not been cleare .
c) 401 Front Street - This property for sale b Bernie Kemp has sold for about $73,000 to
Chip Bauer. It is his intent to make improve ents for he and his wife's private residency.
d) 225 Front Street - In conversation with arion Carlson, an appraisal has been ordered
but no appointment to view the property has been set with the appraiser. Carlsons will be
out-of-town in early February. Perhaps will at the March HRA meeting.
e) Tax Increment Guarantee Notice - For th benefit of new commissioners, enclosed is a
copy of the letter mailed per the direction of the lIRA commissioners of 1995.
f) TIF pay-as-you-go payments - As you we e noted at the January 28 meeting, 1997
year-end pay-as-you-go payments were dis sed in mid-January as outlined in the
appropriate Private Redevelopment Contra s.
g) T[F and GMEF reporting - An account 0 job creation and wages for business receiving
greater than $25,000 must be reported to th state by March 1.
h) Preliminary staff discussion for perhaps 0 additional TIF projects.
1
January 20 1998
MONTICELLO
Jerald J. and Mary E. Schoen
Aroplax Corporation
200 Chelsea Road
Monticello, MN 55362
RE: TAX INCREMENT GUARANTEE NOTI
. Dear Jerry and Mary:
Per the Private Redevelopment Contract dated ugust, 3, 1992, between the Housing and
Redevelopment Authority (the "Authority") in and fo the City of Monticello, Minnesota, and Jerald
J. and Mary E. Schoen (the "Redeveloper"), ICLE VI, Tax Increment, Section 6.1. Tax
Increment Guarantee, the Redeveloper agreed to a T Increment Guarantee. "Beginning in calendar
year 1994, in the event that the Tax Increment gene ated by the Tax Increment District in any year
until the Maturity Date is or will be less than $21 500, the Authority shall provide notice to the
Redeveloper of such fact and the amount of the de ciency in Tax Increment......"
Below is a notice of the amount of Tax Incremen collected by the Administrator of the City of
Monticello from the Auditor of the County of Wright, beginning calendar year 1994 through calendar
year 1997 for the property described as: Lot 3, Block 2, OAKWOOD INDUSTRIAL PARK, except
for tract described in Book 290 of Deeds, page 894 City of Monticello, County of Wright.
1994
1995
$19,523.24
$20,908.21
.
l22.Q. 1997
$20,957.01 $20,764.38
Monticello City Hall, 250 E. Broadway, PO Box 1147, Monticell ,MN 55362-9245 . (612) 295-2711. Fax: (612) 295-4404
Office of Public Works, 909 Golf Course Rd., Monticello, MN 55362. (612) 295-3170. Fax: (612) 271-3272
.
Jerald 1. and Mary E. Schoen
January 20, 1998
Page 2
The cumulative amount of the deficiency in Tax Inere ent through calendar year 1997 is $3,847.16.
At the September 6, 1995, meeting of the Auth rity, the commissioners authorized that the
Redeveloper be notified of the cumulative amoun of the deficiency in Tax Increment with the
following explanation: This is a deficiency notice d the amount is not due and payable. In order
to allow for adjustments in the amount of Tax Incre ent generated over the life of the District, the
Authority will provide an annual notice of such fact d the cumulative amount of the deficiency in
Tax Increment until the Maturity Date of the Tax In ement District. Upon the Maturity Date and
Thirty (30) days after receipt of the notice, the Red veloper shall be liable for and shall pay to the
Authority the cumulative amount of the deficiency.
If you should have any questions, please call me at
Sincerely,
HOUSING AND REDEVELOPMENT AUTHO
IN AND FOR THE CITY OF MONTICELLO,
. Q)~ ~O\~~~
.
Ollie Koropchak
Executive Director
cc: Rick Wolfsteller, Administrator
File
SOTA
January 2 , 1998
--
MONTICELLO
Mr. Pete Abelson
Northern States Power Company
414 Nico Het Mall
Minneapolis, MN 55401
RE: TAX INCREMENT GUARANTEE NOTI
.
Dear Mr. Abelson:
Per the Private Redevelopment Contract dated eptember 6, 1989, between the Housing and
Redevelopment Authority (the "Authority") in d for the City of Monticello, Minnesota, and
Northern States Power Company (the "Redevelop r"), ARTICLE VI, Section 6.1. Tax Increment
Guarantee, the Redeveloper agreed to a Tax Increm t Guarantee. "Beginning in calendar year 1991,
in the event that the Tax Increment generated by e Tax Increment District in any year until the
Maturity Date is less than $6,913, the Authority sha provide notice to the Redeveloper of such fact
and the amount of the deficiency in Tax Increment......"
Below is a notice of the amount of Tax Increm collected by the Administrator of the City of
Monticello from the Auditor of the County of Wright beginning calendar year 1991 through c!Jlendar
year 1997 for the property described as: Lot 4 Block 3 OAKWOOD INDUSTRIAL PARK
according to the recorded plat thereof, Wright C unty, Minnesota. Except the east 215.72 feet
thereof subject to easements of record.
1991
1992
1993
1994
1995
1996
$7,173.41
$6,673.06
$6,277.95
$4,53 .12
$4,314.31
$5,301.06
1997
. $4,894.77
Monticello City Hall, 250 E. Broadway, PO Box 1147, Monticell ,MN 55362-9245. (612) 295~2711 . Fax: (612) 295~4404
Office of Public Works, 909 Golf Course Rd., Monticello MN 55362 · (612) 295-3170 · Fax: (612) 271-3272
.
Mr. Abelson
January 20, 1998
Page 2
The cumulative amount of the deficiency in Tax Incr ment through calendar year 1997 is $9,224.32.
At the September 6, 1995, meeting of the Aut ority, the commissioners authorized that the
Redeveloper be notified of the cumulative amo t of the deficiency in Tax Increment with the
following explanation: This is a deficiency notice d the amount is J1Q1 due and payable. In order
to allow for adjustments in the amount of Tax Iner ment generated over the life of the District, the
Authority will provide an annual notice of such fac and the cumulative amount of the deficiency in
Tax Increment until the Maturity Date of the Tax crement District. Upon the Maturity Date and
Thirty (30) days after receipt of the notice, the R developer shall be liable for and shall pay to the
Authority the cumulative amount of the deficienc .
If you should have any questions, please call me a 295-2711.
Sincerely,
HOUSING AND REDEVELOPMENT AUTHO
IN AND FOR TIffi CITY OF MONTICELLO,
. G~ ~~~~~
SOTA
Ollie Koropchak
Executive Director
cc: Darrin Lahr, NSP St. Cloud
Rick Wolfsteller, Administrator
File
':~ .
.
J.
:....
;:', ;u
. ,
.. (.
/ ., '1 .'
~
~
MONTICELLO
January 20 1998
William R and Barbara R. Tapper
Tapper's, Inc.
212 Chelsea Road
Monticello, MN 55432
.
RE: TAX INCREMENT GUARANTEE NOTI E
Dear Bill and Barb:
Per the Private Redevelopment Contract dated July 13, 1990, between the Housing and
Redevelopment Authority (the "Authority") in and for the City of Monticello , Minnesota, and William
R. and Barbara R. Tapper (the "Redeveloper"), TICLE VI, Tax Increment, Section 6.1. Tax
Increment Guarantee, the Redeveloper agreed to a T Increment Guarantee. "Beginning in calendar
year 1992, in the event that the Tax Increment gene ated by the Tax Increment District in any year
until the Maturity Date is or will be less than $26, 00, the Authority shall provide notice to the
Redeveloper of such fact and the amount of the de dency in Tax Increment......"
Below is a notice of the amount of Tax Increment collected by the Administrator of the,-City of
Monticello from the Auditor of the County of Wright, beginning calendar year 1992 through calendar
year 1997 for the property described as: Lot 4, lock 2, OAKWOOD INDUSTRIAL PARK
according to the recorded plat thereof, Wright Co ty, Minnesota.
l222 1993 1995 1996
$25,628.14 $25,322.52 $24,288.18 $24,364.08
. l221
$24,008.52
Monticello City Hall, 250 E. Broadway, PO Box 1147, Monticell ,MN 55362-9245. (612) 295-2711. Fax: (612) 295-4404
Office of Public Works, 909 Golf Course Rd" Monticello, N 55362 . (612) 295-3170 . Fax: (612) 271-3272
.
.
.
William R. and Barbara R. Tapper
January 20, 1998
Page 2
The cumulative amount of the deficiency in Tax Incr ment through calendar year 1997 is $8,192.08.
At the September 6, 1995, meeting of the Aut ority, the commissioners authorized that the
Redeveloper be notified of the cumulative amo of the deficiency in Tax Increment with the
following explanation: This is a deficiency notice a d the amount is llQ1 due and payable. In order
to allow for adjustments in the amount of Tax Incre ent generated over the life of the District, the
Authority will provide an annual notice of such fact and the cumulative amount of the deficiency in
Tax Increment until the Maturity Date of the Tax crement District. Upon the Maturity Date and
Thirty (30) days after receipt of the notice, the Re eveloper shall be liable for and shall pay to the
Authority the cumulative amount of the deficiency.
If you should have any questions, please call me at 95-2711.
Sincerely,
HOUSING AND REDEVELOPMENT AUTHO
IN AND FOR THE CITY OF MONTICELLO,
(j~ ~C1\~
Ollie Koropchak
Executive Director
cc: Rick Wolfsteller, Administrator
File
SOTA
January 2 , 1998
--
MONTICELLO
Mr. Thomas Moore
Remmele Engineering, Inc.
10 Old Highway 8 SW
New Brighton, MN 55112
RE: TAX INCREMENT GUARANTEE NOT! E
.
Dear Mr. Moore:
Per the Private Redevelopment Contract date July 16, 1990, between the Housing and
Redevelopment Authority (the "Authority") in d for the City of Monticello, Minnesota, and
Remmele Engineering, Inc. (the "Redeveloper"), TICLE VI, Tax Increment, Section 6.1. ill
Increment Guarantee, the Redeveloper agreed to a T Increment Guarantee. "Beginning in calendar
year 1992, in the event that the Tax Increment gen rated by the Tax Increment District in any year
until the Maturity Date is or will be less than $3 ,000, the Authority shall provide notice to the
Redeveloper of such fact and the amount of the de ciency in Tax Increment......"
Below is a notice of the amount of Tax Increme t collected by the Administrator of the City of
Monticello from the Auditor of the County of Wright beginning calendar year 1992 through c!llendar
year 1997 for the property described as: Lot 1, Bl ck 1, Remmele Addition, City of Monticello.
1992 1993 1994 1995 .l22.Q. 1997
$27,859.92 $27,322.52 $33,965.28 $34, 85.24 $34,183.16 $47,100.72
.
Monticello City Hall, 250 E. Broadway, PO Box 1147, Monticel 0, MN 55362-9245 . (612) 295-2711 . Fax: (612) 295-4404
Office of Public Works, 909 Golf Course Rd., Monticell ,MN 55362 . (612) 295-3170 · Fax: (612) 271-3272
.
Mr. Moore
January 20, 1998
Page 2
The cumulative amount of the deficiency in T Increment through calendar year 1996 was
$2,583.88. In 1997, the amount of Tax Increment collected was $47,100.72; therefore, no deficit
currently exists.
At the September 6, 1995, meeting of the Aut ority, the commissioners authorized that the
Redeveloper be notified of the cumulative amo t of the deficiency in Tax Increment with the
following explanation: This is a deficiency notice d the amount is !1Q1 due and payable. In order
to allow for adjustments in the amount of Tax Incr ment generated over the life of the District, the
Authority will provide an annual notice of such fac and the cumulative amount ofthe deficiency in
Tax Increment until the Maturity Date of the Tax crement District. Upon the Maturity Date and
Thirty (30) days after receipt of the notice, the Re eveloper shall be liable for and shall pay to the
Authority the cumulative amount of the deficiency
It appears the amount of Tax Increment for this Tax crement District has adjusted and in the future,
Remmele Engineering, Inc. will not receive a Tax crement Guarantee Notice. If you should have
any questions, please call me at 295-2711.
. Sincerely,
HOUSING AND REDEVELOPMENT AUfHO TY
IN AND FOR THE CITY OF MONTICELLO, SOTA
a~ ~~~
Ollie Koropchak
Executive Director
cc:
Kent Paul, Plant 20, Monticello
Rick Wolfsteller, Administrator
File
.
.
.
.
EEF PR PER TIES
206 West Se enth Street
Monticello, MN 55362
January 7, 1998
Monticello HRA
City of Monticello
PO Box 1147
Monticello, MN 55362
ATTN: Ollie Koropschak
Fax 612-295-4404
SUBJECT: Monticello Mall Redevelopment
Regarding our letter to the Monticello lIRA of No ember 26, 1997, we would like to update and
amend it as follows:
We request $600.000 to be used for the following osts (see attached list):
Relocation of existing tenants
Demolition of the mall
Acquisition
Thank you very much for your consideration.
hYj;!~-<,
Barry D. Fluth
(612) 29 -4013
.
.
.
MONTICELLO MALL EDEVELOPMENT
RELOCATION EXPENSES
SKILLET
$285,00 .00
OPTICAL
H& R BLOCK
HALLMARK
~
WRIGHT WAY '<t v:.~'
NORTHST AR
PET STORE
DANCE STUDIO
WEIGHT WATCHERS
1230
?-o v&c..""" \~
no
\.A.~ \..\ ~
"\'~""Q ~~~~-
?-'f'V'e~ ~ ~ (~~~h-.)
"f ~-~. 'yv1o I,>Jt../ l ~\l ~ \6. \O\~,~ y-~-
\.n--..o. - ~ 0.,,-,
~..l2.t.+A - u-.(?
'Y\", -\-\ . ~ I,) \('{\ ~
"w1...-~-.j"'\ u . ""'""'~~
RENAISSANCE WEST
ESTIMATED TOTAL
$3,00 .00 \~ -~
$452,20 .00
.
.
.
MONTICELLO MAT,L REDEVELOPMENT
TEN^---NT RELOC TION UPDATE
IIThlANI
, 1 999
RENAISSANCE WEST location
H&R BLOCK 236 Wes Broadway
MONTICELLO OPTICAL Colonial
COMPANION PETS
200 bloc
NORTHSTAR CAPITAL Colonial
CONCEPTS
BARBARA LEE'S
STUDIO OF DANCE
unknown at this time
WRIGHT WAY SHOPPERnew offic building on Chelsea Rd
GARTNER'S HALLMARK
SKILLET RESTAURANT may buil new building or relocate to
other part of town
MASTER'S HOME
FURNISHINGS
close for i mediate future, possible
reopen wi h employee ownership