HRA Agenda 03-04-1998
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AGEN A
MONTICELLO HOUSING AND RE EVELOPMENT AUTHORITY
Wednesday, March 4 1998 - 7:00 p.m.
City H II
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 0 lie Koropchak.
GUESTS:
Greg Hayes, Shingobee, Inc.
1. CALL TO ORDER.
2. CONSIDERATION TO APPROVE THE J ARY 7, FEBRUARY 4, FEBRUARY
11, AND FEBRUARY 25,1998 HRA TES.
3. CONSIDERATION OF ADDING AGE
4.
CONSIDERATION OF REQUEST BY CI COUNCIL RELATING TO THE
DESIGN AND FINANCING OF THE NG COMMUNITY CENTER AND
CONSIDERATION OF ACTION IF NEC SSAR Y.
S. CONSIDERATION OF PRELIMINARY ONCEPT APPROY AL FOR PROPOSED
REDEVELOPMENT PROJECT NO. II W THIN TIF DISTRICT NO. 1-22 AND
AGREEING TO THE USE OF TIF.
6. CONSIDERATION TO AUTHORIZE PANT OF HRA MONTHLY BILLS.
7. CONSIDERATION OF EXECUTIVE D CTOR'S REPORT.
8. OTHER BUSINESS.
9. ADJOURNMENT.
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. 2.
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MINUT S
MONTICELLO HOUSING AND RE EVELOPMENT AUTHORITY
Wednesday, February 2 ,1998 - 4:30 p.m.
City H II
MEMBERS PRESENT:
Chair Brad Barger, V ce Chair Steve Andrews, Bob Murray, and
Dan Frie.
MEMBERS ABSENT:
Darrin Lahr.
COUNCIL LIAISON ABSENT:
Brian Stumpf
ST AFF PRESENT: Ollie Koropchak.
STAFF ABSENT: Rick Wolfsteller and Jeff 0'
GUESTS:
Barry Fluth, BBF, Inc. and Brad L
1. Call to Order.
Chair Barger called the special HRA meeti to order at 4:40 p.m.
Bob Murray made a motion to adopt a reso ution approving an amendment to the
Contract for Private Redevelopment betwe n the BRA and BBF, Inc. Steve Andrews
seconded the motion. With no exposure or liability to the HRA or further discussion, the
motion passed unanimously.
The said resolution authorizes staff and leg counsel to prepare and amend the Contract,
authorizes the developer to escrow $3,000 or commencement of the process, and wherein
the developer agrees to pay the total costs f acquisition of condemned interests and to
hold harmless, defend and indemnify the for all claims relating to the acquisition of
condemned interests.
3.
Attorney Brad Larson informed HRA mem ers that the mall and K-Mart parcels at one
time were controlled by the same party, Li coIn Properties. A Declaration of Reciprocal
Easements was filed of record against the roperty described as Lot 2, Block 1 and Outlot
C, Kirkman Addition. Certain provisions f the Declaration restrict Fluth "the developer"
1
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HRA MINUTES
FEBRUARY 25, 1998
to cany out redevelopment of the mall. Su h provisions relate to the mall walkway and
the K-Mart/landlord lease. As long as the I ase is in effect, no building or other structures
shall be constructed upon the mall parcel o. er than those currently constructed and/or
contemplated by the Lease. The Lease is a 5-year lease which was executed in the early
nineties.
No economic damages are slated to occur ith redevelopment of the mall. K-Mart
Corporate has consented to remove the co demned interests and welcomes the potential
of increased sales resulting from the redeve opment of the mall and the proposed new
tenant "Cub Foods". However, Mr. Fluth as been unable to reach an agreement to
remove the condemned interests with the I dlord of the K-Mart building. An economic
gain for the landlord is anticipated as the Lase Agreement with K-Mart indicates rent will
increase once K-Mart reaches a certain thre hold of annual gross sales. This certain
threshold is anticipated to be reached with t e draw of the proposed "Cub Foods". HRA
Attorney Bubul concurs.
In order to allow the developer to proceed 'th redevelopment of the mall in a timely
manner and with no exposure or liability to he lIRA, Steve Andrews made a motion to
adopt a resolution authorizing eminent do . proceedings to acquire certain real
property interests. Bob Murray seconded t e motion and with no further discussion, the
motion passed unanimously. The procedur is through a 90-day quick take.
4.
Acljoumment.
Dan Frie made a motion to adjourn the spe ial HRA meeting. Seconded by Bob Murray
the meeting adjourned at 5:00 p.m.
G~ \<~~J)~
Ollie Koropchak, Executive Director
2
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HRA AGENDA
MARCH 4, 1998
4.
A. Reference and Back~ound:
The City Council meets of Monday, March 2, to consider design and financing options for
the NG/Community Center, pending the ou come of the Council meeting will action be
required of the HR.A. The small group of member Brad Barger and Steve Andrews
and Council member Brian Stumpf and Bru e Thielen met 3~4 times and were unable to
agree on a recommendation to forward. Pr vious actions taken:
1. Council authorizes use of Lease R.e enue Bonds for city hall/core facility.
2. Task Force recommends use of Lea Revenue Bonds for city hall/core
facility/aquatic.
3.
HRA authorizes entering into a Prel minary Development Agreement between the
HRA, City, and National Guard for se of Lease Revenue Bonds on the city
hall/core facility/aquatic center allo ing continued talks on the design and to
further explore other sources of fun s to assist with retirement of the debt.
Two HRA voted against that motion for th following reason: A community of 6,300
should have a voice in a $10 million project
4. Objective of the small group: To re ommend a design and financing option for the
NG/Community Center to the City ouncil and HRA.
City Council action and request of March 2 will be presented at the March 4 HRA
meeting.
1
MAR 1213 '98 1213: 16PM EHLERS & ASSOCIATES P.2/3
PRELIMINARY. or Olscussion Only
. City of Monticello Q ~...).. .J..
Community Center Financing ~~
Full project
Lea..
Revenue
Bondi
$500,000
No dd. Cuts Add. Cuts
1 Project Costs ,379,239 9,379,239
2 Plus: Delay in Aquatic Center 0 0
3 Less: Cuts 0 (500.000)
4 Aquatic to G.O. Bonds NA NA
5 National Guard ( ,500,000) (1,500,000)
6 Sale of City Hall + Senior Center (500,000) (500,000)
7 other City Funds (400,000) (400,000)
8 I.iquor Store Reserves (224,000) (224,000)
9 Investment of Bond Proceeds (' 20.000) (120,000)
10 Net Project Cost ,635,239 6,135,239
11 Finance Costs 2.35% 165,258 162,805
12 Capitalized Interest 7 231,772 214,307
13 Rounding 2,731 2.649
14 Total Bond Issue 5.65% .035,000 6.505,000
. 15 Annual Costs
16 Total Debt Service 20 596,032 551,128
17 Net Liquor Store Revenues (200,000) (200,000)
18 Tax Increment (11,250) (11,250)
19 Operating Deficit 85,596 85,596
20 Total to Levy 470,378 425,474
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Ehlers & Associates, Inc.
o 03/98
ccadopt.123
MAR 03 '98 03:17PM EHLERS & ASSOCIATES
P.3/3
PRELIMINARY - or Discussion Only
. City of Monticello
Projected Tax Impact
Net Levy. LRB + o"perations .,,'-"'~
Net Levy - G.O. Bonds
Combined
Estimated Tax Rate.. Market Value
1 Estimat~d Tax Rate - Tax CapacitY._~
,-,,~~_....'-
.
EMV
---'-'-$30,00'0
60,000
90,000
120,000
150,000
200,000
250,000
300,000
_350,,~00,
$50,000
100.000
300,000
500,000
750,000
1.000,000
1 ,250,000
1,500,000
1,750,000
_.,__"._.~ooo,~oo
,8m
Ruidential
Homestead
','/"
..
Commercial
Indu . I
NetTaxC pac~~
,.-.-.
I Full Project
I
: Lease Revenue
I Bonds
I 5500,000 Add.
No Add. C IS I Cuts
$470,37~ $425,474 .
010
I
470,37 I 425,414
I
I
I 0.0000'%
I 2.9519%
:,,:. ':~.Ilt."-:A,, .~~~.?a.J:'~~ft~,i,r.r~~('; :'; ,:::,:"
___ ----1..-~ ,_.
$9.79 I $8.86
19.58 I 17.71
33.53 : 30.33
51.64 , 46.71
69.7 : 63.10
99.9 I 90.40
130.1 I 117.71
160.3 I 145.01
190.5 I 172.32
, ..~.,,' ' '.': '. i:, .
$44.0 $39.85
88.1 79.70
327.9 296.67
589.0 532.82
915.3 828.01
1,241. 4 1.123.20
1,568. 8 1,418.39
1,894. 2 1,113.58
2.220. 7 I 2,008.76
2,547: 1.L~.303.95
The figure$ above are gross property tax amounts. They do ot reflect the effects of the
state ~roperty Tax Refund ("Circuit Breaker") program or pot ntial federal income tax
deductions. Some owners of homestead proper'IY (both re$iential and agricultural) will
qualify for a state refund, based on their Income and total pr perty tax bill. These factore
will decrease the net Impact of the project for many property wners.
The tax capacity values in this analysis are based on statuto formulas tor taxes payablE
1998. Legislative action to change these formulas will alter t e results.
.
The analysis uses a total City Net Tax Capacity of:
This amount refltC'lS values for taxes payabli In 1998.
EhlerS & Associates. Inc.
$14,413,597
3/03/98
ccadopt. , 23
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HOUSING AND REDEVEL PMENT AUTHORITY
t~ AND FO THE
CITY OF MONTtCEL 0, MINNESOTA
RESOLUTION N .
RESOLUTION OF OF CIALINTENT
TO REIMBURSE EXPENDITURE FOR ARMORY PROJECT
WHEREAS, I reasury Regulations, Sect on 1.150-2, provides that the proceeds of
tax-exempt bonds will not be deemed to be sp if they arE: used to reimburse pri or
expcndltures. unless certain conditlOns arc met nd
WHEREAS. the Authority and the City f Monticello expect to incur
expenditures with respect to the Armory Project which may be initially made from
sources other than the proceeds of a borrowing, ut which are intended to be relmburs.ed
from the proceeds of bonds or other obligations ssued by or on behalf ofthe Authority or
the City;
NOW THEREFORE. BE II RESOL YE , by the Housing and Redevelopment
Authority in and for the City of Monticello, M' esota. as follows:
I, The Authority reasonably intends to ake expenditures for the Armory project
and reasonably intends to reimburse itself for ~u h expend1tures tram the proceeds of
debt to be 15~ued by or em behalf of the Authori or the City of Monticello in the
maximum principal a.mount of$
2.1111S resolut1on is intended to consti e a declaration of official intent for
purposes of Treasury Regulation:;;. Section 1 150 2. and any successor law. regulation or
ruling. The Executive Director and other Auth . y staff are authoriztd and directed to
maintain such records of expenditures to bc rei rsed pursuant to this Resolution as
may be required by Treasury Regulations. Sccti n 1.150-2, and any succe!\sor law.
rtgulation or roling.
leE-~ ZO/ZO"d ~9B-!
N3^Y~~ , ^a3NN3~-WOJ~ wd99:EO eB-~O-Je~
OlEBlEEZl9
MEM
MONTICELLO
OLLIE KOROPCHAK
CITY HALL
TO: Community and Training Center T sk Force
FROM:
J eff O'Neill, Assistant Administrato '-:-
DATE:
February 25, 1998
RE:
Council and HRA meetings
This is written to let you know that a special mee ing of the City Council has been
scheduled for Monday, March 2, 1998, 7 p.m., at 'ty hall, for the purpose of considering
options for further action on the conununity and raining center. Specifically, the City
.council will be asked to consider forwarding a re uest to the Housing and Redevelopment
Authority for participation in the project. As pa of the meeting, there will be a review of
the reconunendation by the task force and review of additional information stenuning from
the Council/HRA small group meetings. There lllikely be an opportunity for the public to
provide additional input. The HRA is scheduled 0 review the City Council request at the
regular meeting of the HRA, which is scheduled f1 r Wednesday, March 4,1998, at 7 p.m.
If you should have any questions regarding this i portant meeting, please call. I hope to
see you there.
cc: City Council
HRA
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Monticello City Hall. 250 E. Broadway, PO Box 1147, Monticello, 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
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HRA AGENDA
MARCH 4, 1998
5.
A. Reference and Background:
Greg Hayes, Shingobee, Inc., will make a p ,esentation to the HRA on a proposed
redevelopment project for Lots 13, 14, and 5, Block 36, City of Monticello (corner of
Locust and West Broadway). The propose project meets the purpose ofa
redevelopment district: To eliminate blighte , substandard, and under-utilized property for
redevelopment of a professional building. urrently, the site consists of a vacant Amoco
station building, three underground gasolin tanks, and one underground oil tank which
will require demolition and removal. Altho gh the proposal has no planned retail on first-
floor, the planner felt because of its locatio the professional building would serve as a
nice bookend to the entry of the westerly est Broadway downtown business district.
Mr. Hayes is looking for preliminary conce t approval of the proposed redevelopment
project and requesting the use the TIF. Cit staffwill be meeting with Mr. Hayes again on
Monday, March 2,4:00 p.m.
The HRA is not requested at this time to d ermine an amount or level of TIP assistance
nor to authorize preparation of the Private edevelopment Contract. However, enclosed
are TIF cash flows assuming construction a 4,000 sq ft print (8,000 sq ft 2-story)
professional building or a 6,000 sq ft print 12,000 sq ft 2-story) professional building.
Assuming the same rationale used for the all redevelopment ofa 7.5% interest rate, 15
years, and utilizing 50% of the tax: increm t; the projected assistance level is $43,437
NPV/$84,683 or $74,459 NPV/$145,163, espectively. Mark Ruff, EWers & Associates,
feels the County Assessor's value of$50 p r sq ft for the professional building is low.
Mr. Hayes will make his presentation and ay indicate the level of assistance needed to
cash flow the proposed project. It is Shin bee's intent to own the building and lease to
two tenants.
Please consider the following action:
B. Alternative Action:
1. A motion approving the prelimin concept for redevelopment project no. 2
within TIF District No. 1-22 and a reeing to the use of TIP.
2. A motion denying approval ofthe reliminary concept for redevelopment project
no. 2 within TIF District No. 1-22.
1
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HRA AGENDA
MARCH 4, 1998
3. A motion to table any action.
C. Recommendation:
Staff recommendation is alternative no. 1. though the city has received a couple of
other inquiries for redevelopment or revital zation of the property, no proposal has been
submitted.
D. Supportin~ Data:
TIF Cash flows and map of the proposed r development project.
2
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FEE 18 '98 10:23AM EHLERS & ASSOCIATES
02l18llle MonlleellD HRA: I .000 8.1. Building at 7.5%
I
Intere,t AlII
Tax EXlertSIOl'l Rate:
Inflation Rate:
PIN
";55:010:036'1"30' ..-.--..-
155-010-036140
foi8i'~--'-"'''~ .-...- .-.
P.2/5
7.500
1.12 Pay 97 Fro!en Rate
0.0000"0
ax
Ca~
m-
2,333
2.84 ESlimated Pay 98 Tax Capacity
E INFORMATION"
Redevelopmenl
OHlco
Ellimal~ Markel Value 01 N~ Projed:
Cln. Aate on lir,t $150,000 of Mar1o\tt Value
Cia., Rale Market Velue > $150,000
Estimated Tex Cepadty:
Eslimaled T.....:
A88Nsor'a Markel Valuell.l.
Tall.als.!.
-Thl.. estimate. take Into accounttM new tax c:luslflcallon rate changes.
2.;0%
4.00%
\
&:111.ra and ^,,~:al"". 1I'Ic.
8.000
400,000 Pay 00
14,050 Pay 00
15,736
$50.00
'1.97
p,,_ 1 4Unr.01 WX4
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FEB 18 '98 10:23RM EHLERS & RSSOCIRTES
02118198 MonIi~lo HAl\.: ,000 I.f. Building al7.n.
NTICELLO, MINNESOTA
:(-.
P,3/S
peRIOD BEGINNING
Yrr.. Mlh. Yr.
.'b.o' 02-01 19911
0.5 08-01 1998
1.0 02-01 1999
1,5 08-01 1999
2,0 02-01 2000
2.5 08-01 2000
3,0 02-01 2001
3.5 08-0' 2001
4.0 02-01 2002
4.5 08-01 2002
5.0 02.01 2003
5.5 OS.01 2003
11.0 02-01 2004
8,5 08-01 2004
7.0 02-01 2005
7.5 08-01 2005
8.0 02-01 2006
8.5 08-01 2008
0.0 02-01 2007
0.$ 08-01 2007
10.0 02-01 2008
10.5 08-01 2008
11.0 02-01 2009
11.5 08-01 2009
12.0 02-01 2010
12.5 08-01 2010
13.0 02-01 :2011
13.5 08-01 2011
1 <&.0 02-01 2012
1<&.5 08-01 2012
15.0 02-0' 2013
15.5 OS-01 2013
16.0 02-01 2014
16.5 08-01 2014
TAX INCRE NT CASH FI.OW
Baso Project --'~'C8piu-riia mi.Annua amln. Sei7iT-Ar1;i'i.iiJ-."sor- LOClII Yeara
Tax Tax Tu GroN T(IllC at Net Te. 01 MeIth al Of
Capa~o/... .9~.l;l~ell~.. Capacity Increment 1 .2?..!e.. Increment Inetemllnl 5.00% Incroment
2.849 2,849 0 0 0 0 0 0 0.0
o 0 0 0 0 0.0
o 0 0 0 0 0.0
o 0 0 0 0 0.0
6,273 (627) 5,646 2.823 314 0.5
6,273 (827) 5,646 2,823 314 1.0
6,273 (827) 5.646 2,823 314 1.6
8,273 (827) 5,646 2,823 314 2.0
&,213 (621) 5,646 2.823 314 2.5
6.273 (627) 5,6411 2,823 314 3.0
6,273 (627) 5,648 2,823 31. 3.5
6,273 (627) 5,646 2.823 314 4.0
6,273 (621) 5,846 2.823 314 4.S
U73 (627) 5,646 2.823 3'd. 5.0
6,273 (627) 5.646 2,823 314 5.5
8,213 (627) 5,646 2,823 314 6,0
6,273 (627) 5,646 2,823 314 6.5
8,273 (627) 5,646 2,B23 314 7.0
8.273 (627) 5,646 2.823 314 7.5
6.273 (627) 5.846 2.823 314 8.0
6.273 (627) $,&415 2.823 314 8.5
6,273 (627) 5.Me 2.823 314 Q.O
6,273 (627) 5.846 2,823 314 9.5
6,273 (627) 5.646 2,823 314 10.0
6,273 (627) 5.646 2,823 314 10,5
15.273 (827) 5,646 2,823 314 11.0
ll.m (621) 5,646 2,823 314 11.5
6,273 (627) 5,646 2.823 314. 12.0
6.273 (621) $,60&6 2,823 314 12.5
8.273 {627) 5,646 2,1123 314 13.0
6.273 (627) 5,646 2.823 314 13.5
8,273 (627) 5,646 2.823 314 14.0
6,273 (621) 5,846 2.823 314 ".5
8,273 (627) 5,546 2'~1--_~!:4. .-----1~.0
.-- 188,18~ _:~.<~ii;619) 169,3117 64863
..... . D..~..S26 13,653) 88.873 .y1.43!.. , _..~.~.. . ~..... ~~..
PEFlIOD ENDING
Yrs. Mlh. Yr.
0.5 08--6, '1998
1.0 02-01 1999
1.5 08-0' 1999
2.0 02-01 2000
2.5 08-01 2000
3.0 02-01 2001
3.5 08.01 2001
4.0 02.01 2002
4.15 08-01 2002
5.0 02-01 2003
5.5 08-01 2003
6.0 02-01 2004
6.5 06-01 Z004
7,0 02.01 2005
7.5 06-01 2005
8.0 02-01 2006
8.5 08-01 2006
9.0 02-01 2007
9.5 08-01 2007
10.0 02-01 2008
10.5 08-01 2006
11.0 02-01 20~
11.5 08-01 2009
12.0 02-01 2010
12.5 08-01 2010
13.0 02-01 2011
13.5 08-01 2011
14.0 02-01 2012
14.5 08-01 .2012
15.0 02-01 2013
16.5 08-01 :2013
16.0 02-01 20ld.
16.5 08-01 2014
17.0 02-01 2015
Ehl9rs "'" Asaodalel. '"I;:.
2,849
2,849
2.849
2.849
2,849
2,ll49
2.849
2.849
2,849
2,849
2,84(1
2,849
2.849
2.840
2.849
2,849
2,849
14,050
14,050
14,060
14,050
14.050
'4.050
1.,050
14,050
14,050
14,050
14.050
14.050
14,050
ld.,050
14,050
... '''Total,
.... ~re;enl Values
11.202
11.202
" ,202
11.202
11.202
11.202
11,202
11.202
11.202
11.202
11,202
11,202
11,202
11,202
11,202
o
pa51"2 AMOC01.WK.&
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FES 18 '98
02l181i.
8....'11II_ ..."'''' 'h..i"t.............._ 1__
10:24AM EHLERS & ASSOCIATES
MontiCfllo HRA 12.000 .... Building a.7.5%
P.4/5
Inlere$1 ala
Tall Exten5ion Rate:
Inflalion AatA:
.500%
1.12 Pay 97 Frozen Rate
0.0000%
PIN
155.010-036130' ,
155-010-036140
'TOra
E INFORMA TION".
Redevelopment
Of1ioe
12,000
estimalad Markel Value of New ProjeCt:
Clasa Aala on first Sl$O,ooO of Marl(et Valu 2.70%
CI... A.le Markel Value> $150,000 4.00%
Estimated Tall Capacity:
eaUm,led Taxes;
Assessor's Mar1<~t ValuQ/s.l.
Taxes/s.l.
."Thoso oSlimaletlilke Into account the new~. cl..,ification rale changes.
600,000 Pay 00
22.050 Pay 00
24,696
550.00
$2,06
\
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FEB 18 '98 10:24AM EHLERS & ASSOCIATES
02l1l1198 MOII1lcellO HAil: 2.000.... Building 817.5%
PERIOD BEGINNING
Yrs, Mlh. Yr.
0.0 02-01' 111118
0.5 08-01 1998
1.0 02-01 1999
1.5 08-01 1999
2.0 02.01 2000
2.5 08.01 2000
3.0 02.01 2001
3.5 OQ.-01 2001
4.0 Oa-ol 2002
4,5 0&-01 2002
5,0 02-01 2003
5,5 08-01 2003
8.0 02.01 2004
15.5 08-01 2004
7.0 02-01 200S
7.5 OQ.-Ol zOOS
8.0 02.01 2006
8.5 08-01 2006
9.0 02-01 2007
9,5 08.01 2007
10,0 02.01 2008
10.5 08-01 2008
11.0 02-01 2009
11.5 08-01 20011
12.0 02-01 2010
12.5 08-01 2010
13.0 02-01 2011
13.$ 08-01 2011
14.0 02.01 2012
14.5 0&.01 2012
15.0 02.01 2013
15.5 08001 2013
18.0 02.01 2014
18.5 08.01 201~
I!Ne,.. eM AMoc\ll,", ~.
Bast
Till<
Capacity
. '-2;849
2,&49
2,849
2,8411
z.e~
2,849
2.8411
2,849
2.849
2.849
2,8411
2,849
2.849
2,&49
2,849
2,8411
2,849
CITY OF M NTICELLO, MINNESOTA
?\
TAX INCREM NT CASH FLOW
Projiiet" -- 'Capture,!"" 'Semi=An"uial- Semi-Annual 150"0 Local
Tu T"" Grots TIX at Nel Tax of Malch al
Capacity Ca aei Ineremenl 1 ,00% 'nCremenl 'nCromenl 5.00%
:::: : ~ ~ ~r'---l "~-' .- "1'
o 0 0 0 0
22,050 lU02 10,753 (1,075) 9,678 4,839 538
10,753 (1.075) 9.878 4,839 538
22,050 19.202 10,763 (1.075) 11.678 4.839 ssa
10,753 (1.075) 11,678 4.839 S38
22,050 111,202 10,763 (1.076) U78 4,839 538
10,753 (1,075) 9.678 4.1139 538
22.050 19,202 10,753 (1,075) 9.678 4.1139 538
10,753 (1,07S) 9,678 4,839 538
22,050 19.202 10.753 (1,075) 9,878 4,11311 S38
10.753 (1,075) 9.878 4,839 538
22,050 19.202 10.753 (1,075) 9.678 4,839 538
10.753 (1,075) 9,678 4,839 538
22.050 19.202 10.753 (1,075) 9.&78 4,839 538
10,753 (1,015) 9,678 4,839 538
22.050 19,202 10,753 (1,075) 9,678 4.839 538
10,753 (1,075) 9,878 4.839 538
22,050 19,202 10,753 (1.076) 9,678 4.83Sl 538
10,753 (1,075) Sl,1I78 4.839 538
22,050 19.202 10,753 (1.075) 11,678 4,1139 S38
10,753 (1,075) 9,678 4,839 538
22,050 19.202 10.753 (1.075) 9,678 4.839 538
10.753 (1,075) !il,678 4.839 538
22,050 19.202 10,753 (1,075) 9,678 4,839 538
10,753 (1,075) 9.678 4,839 538.
22,050 111,202 10,753 (1,075) 9,678 4,839 538
10,79 (1~75) 9.1178 4.839 638
22,050 19,202 10,753 (1.075) 9.878 4.839 538
10,753 (1,076) 9.678 4,83$1 538
22,050 19,202 10.753 (1.075) Sl.878 4,839 538
10,753 J..~?5L.... . _~V,'_~ ~..._.. .~.~8.3.~. ___ 638
Totals 322,585 2.~5!).,"" ..29.0,327 . ...~!).~~
Preunl Values . _..___,_...)~\~~.. 6646) 1018,918 ,4459
P.5/5
Year.
Of PEAIOD ENDING
Incremenl Yrs. Mth. Yr.
.... .......0:00.-5 0 - '"
0,0 1.0 02.01 1999
0.0 1.5 08.01 1999
0.0 2.0 02.01 2000
0.5 2.5 08-01 2000
1.0 3.0 02-01 2001
1.6 3.& 08-01 2001
2.0 4.0 02-01 2002
2,5 4.5 01.01 2002
3.0 5.0 0;2-01 2003
3.5 6.5 08-01 2003
4.0 6.0 02-01 2004
'.5 6,5 08-01 2004
5.0 7.0 02-01 2005
5,5 7,5 08-01 2005
6.0 8.0 02-01 2006
6.5 8.5 oa.01 2008
7.0 9.0 02-01 2007
7.5 9.5 08-01 2007
8.0 10.0 02-01 2008
8.5 10.5 08-01 2008
9,0 1 1.0 02-01 2009
9.5 11,5 08-01 2009
10.0 12.0 02.01 2010
10.5 12,5 08-01 2010
11.0 13.0 02.01 2011
11.5 13.5 08.01 2011
12.0 14.0 02001 2012
12.5 14.5 08-01 2012
13.0 15.0 02-01 2013
13.5 15.S 08-01 2013
14.0 16.0 02-01 2014
14.5 , 6.5 08-01 2014
16.0 17.0 02-01 20lS
".ge:2 AMOC01.WK-t
.
BLOC
36
:J I- cI
.mg.
. .
~ 350 Westwood Lake Office
. 8441 Wayzata Boulevard
'S B Minneapolis, MN 55426
- 612.541-4800
~ Associatl!J,/nc. FAX 541-1700
City of MOD
250 East Bra
P.O. Box 1
Monticello, MN
...... .j
I
I
I
I
!
i
~
.
.
.
HRAAGENDA
MARCH 4, 1998
6.
Please note the armory billing is charged to t e City. The bills relating to green acres will
be accounted to not exceed the agreed upon aximum of$I,500. 50% match with Charlie
Pfeffer for the estimated $3,000 costs for 10 bying.
Recommendation is to authorize payment of bills.
1
KENNEDY & RAVEN
. Chartere
200 South Sixth Stre t, Suite 470
Minneapolis, M 55402
(612) 337- 300
F'='B 1 <:) ~{~~1a
l: _ u 1...,,,,,,
February 1 , 1998
City of Monticello
Ollie Koropchak
City Hall
P.O. Box 1147
Monticello, MN 55362-9245
MNI90-00066: Community Center Financing
Invoice # 1894
Through January 31, 1998
For All Legal Services As Follows:
01/04/98 DJG Draft memo to HRA r lease purchase financing 1.30 136.50
01/05/98 DJG Phone call with 0 Ko ochak re lease revenue 0.30 31.50
implications
01/05/98 SJB Review memo re leas purchase; intraoffice 0.50 67.00
. conference with D Gr ensweig re same
01/06/98 DJG Attend task force mee ing re community center 5.90 619.50
options
01/07/98 DJG Attend HRA meeting e financing/design of 6.60 693.00
community center
01/08/98 DJG Research potential co cil member conflicts 2.10 220.50
01/09/98 DJG Draft resolution re loc I option sales tax 0.60 63.00
01/09/98 BMB Message from D Gree sweig; legal research; 1.00 139.00
intraoffice conference with S Bubul; phone call
with M Ruff
01/09/98 SJB Review bond issuanc question; phone conference 1.00 134.00
with B Batterson
01/12/98 DJG Attend council meeti g re community center 4.80 504.00
01/19/98 DJG Draft legal opinion re conflict of interest 4.80 296.00
01/19/98 CLL Intraoffice conferenc re conflict of interest 0.55 57.54
question
01/19/98 SJB Intraoffice conferenc with D Greensweig re 0.75 72.00
conflict question
01/19/98 RHB Intraoffice conferenc re conflict question 0.20 24.00
01/20/98 DJG Attend communitu ce ter public meeting 4.90 302.17
01/20/98 DJG Draft conflict of inter st opinion 2.30 141.83
01/20/98 FBO Intraoffice conferenc re conflict issues 0.50 48.00
01/20/98 CLL Intraoffice conferenc s re conflict of interest issue 0.75 78.46
01/22/98 DJG Phone calls with 0 K ropchak and S Andrews re 2.30 241.50
HRA land purchase; i traoffice conference with S
. Bubul re same
01/26/98 DJG Draft special electron opinion 0040 42.00
01/27/98 GBD Cite check and shep dize cases re proposed 2.50 162.50
community center sp cial election
01/27/98 DJG Review armory boar s financing alternatives 2.80 294.00
01/28/98 GBD Review cases within pecial election opinion 2.00 130.00
01/28/98 DJG Attend HRA meeting re community center 3.20 336.00
.
I
KENNEDY & GRAVEN
Charter d
200 South Sixth Str' et, Suite 470
Minneapolis, M 55402
City of Monticello
Ollie Koropchak
Page 2
MN190-00066: Community Center Financing
Total Services:
$
4,834.00
Attorney S ary
Bruce M. Batterson 1.00 @ 139.00/hr 13 9.00
Charles L. LeFevere 0.75@ 104.61/hr 78.46
Charles L. LeFevere 0.55@ 104.62/hr 57.54
Daniel J Greensweig 12.00@ 61.67/hr 740.00
Daniel J Greensweig 30.30 @ 105.00/hr 3,181.50
Floyd B. Olson 0.50@ 96.00/hr 48.00
Greg B. Davis 4.50@ 65.00/hr 292.50
. Ronald H. Batty 0.20@ 120.00/hr 24.00
Stephen 1. Bubul 0.75@ 96.00/hr 72.00
Stephen 1. Bubul 1.50@ 134.00/hr 201.00
F or All Disbursements As Follows:
12/30/97
01/05/98
01/05/98
01/05/98
01/05/98
01/06/98
01/07/98
01/12/98
01/12/98
01/12/98
01/12/98
01/20/98
.
Travel expense (DJG)
Fax
Fax
Photocopies
Postage
Travel expense (DJG)
Travel expense (DJG)
Fax
Fax
Fax
Travel expense (DJG)
Travel expense (DJG)
Total Disbursements:
Total Services And Disburse ents:
$
21.08
0.00
0.00
0.00
2.25
21.08
21.08
0.00
0.00
0.00
21.08
21.08
107.65
$
4,941.65
!
RAVEN
.
Chartere
200 South Sixth Stre t, Suite 470
Minneapolis, M 55402
(612) 337- 300
February 1 , 1998
City of Monticello
Ollie Koropchak
City Hall
P.O. Box 1147
Monticello, MN 55362-9245
MNI90-00067: Mall Redevelopment
Invoice # 1895
Through January 31, 1998
For All Legal Services As Follows:
01/02/98 SJB Draft contract
01/05/98 SJB Phone call with P Wils n and M Ruff re mall and
relocation issues; rese ch same
01/06/98 SJB Phone call with 0 Kor pchak and M Ruff re
. contract
01/07/98 SJB Intraoffice conference ith D Greensweig re
contract; phone call wi h 0 Koropchak re same;
phone call with D Wil on and B Johnson re same
01/08/98 SJB Research relocation q stions; phone call with 0
Koropchak re HRA meting and contract
01/13/98 SJB Phone call with 0 KOf pchak and B Larson re
relocation issues
01/14/98 SJB Research relocation qe stions; phone call with M
Ruff re same
01/15/98 SJB Research relocation is ues; attend meeting with
City, Developer, et al.
01/16/98 sm Review tenant agreem nt; phone call with 0
Koropchak; research aiver agreements
01/19/98 SJB Draft relocation waive provisions; memo to
Larson
~ ..,...., 01/22/98 SJB Phone call with 0 Kor pchak and S Andrews re
special HRA meeting
01/23/98 RJL Intraoffice conference re relocation benefits
01/23/98 SJB Phone call with 0 KOl1 pchak re mall documents;
draft contract revision ; memo to Koropchak;
intraoffice conference ith R Lindall re relocation
questions
01/26/98 SJB Phone call with 0 Kor pchak re contract issues
. Total Services:
5.00 670.00
0.75 100.50
0.50 67.00
0.70 93.80
1.00 134.00
0.50 67.00
1.50 201.00
5.00 670.00
1.00 134.00
2.00 268.00
1.00 134.00
0.30 43.20
4.75 636.50
0.50 67.00
$ 3,286.00
Continued on Next Page
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.
.
KENNEDY & RAVEN
Chartere
200 South Sixth Str t, Suite 470
Minneapolis, M 55402
City of Monticello
Ollie Koropchak
Page 2
MNI90-00067: Mall Redevelopment
Attorney S ary
Robert 1. Lindall
Stephen 1. Bubul
0.30@ 144.00/hr
24.20 @ 134.00/hr
For All Disbursements As Follows:
01/08/98
01/24/98
01/27/98
01/30/98
01/30/98
Federal Express - deliv ry charge
Fax
Postage
Photocopies
Messenger Service-Str et Fleet
Total Disbursements:
Total Services And Disburse ents:
43.20
3,242.80
$
12.00
16.00
5.79
78.00
29.41
141.20
$
3,427.20
.
.
.
MC100-23
1/5/98 MTR
MTR
1/6/98 MTR
1/7/98 MTR
1/12i98 MTR
1/19/98 MTR
1/26/98 MTR
Monticello HRA
PO Box 1147
Monticello MN 55362-9245
February 11, 1998
MALL REDEVELOPMENT
Discussions with Ollie/Brad J. on Mall
Review development agreement
Conference calls on Mall
Meeting-Mall/Club
Discussions with Ollie on Mall
Revise run for Mall
Revise run for Mall
Total Due This Month:
Previous Balance:
Total Balance Due:
.' \:\\:}j
\-..
,,:; - ~~~
~,~
Hours Amount
0.50 52.50
0.75 78.75
0.75 78,75
2.75 288,75
0.25 26.25
1.00 105,00
0.50 52,50
6.50 $682.50
$1,365.00
$2,047.50
PLEASE KEEP WHITE COpy FOR YOUR FILE A 0 REMIT PINK COPY WITH PA YMENT TO:
3060 Centre Poi te Drive
Roseville, MN 55 13.1105
(612) 697- 500
.
.
.
MC100-24
12/2/97 RF
12/3/97 RF
12/10/97 RF
12/16/97 RF
12/30/97 RF
1/5/98 RF
1/6/98 RF
1/7/98 MTR
1/8/98 MTR
1/9/98 MTR
1/12/98 MTR
1/15/98 RF
1/19/98 RF
1/20/98 RF
RF
1/30/98 RF
RF
Monticello HRA
PO Box 147
Monticello MN 5362-9245
February 1 ,1998
COMMUNITY CENTER
Meet with Staff and architects
Meet with Attorneys
Meeting @ Veit
Meet with staff/Guard/architects
Meet with task force
Sales tax analysis
Meet with task force
Meeting - Community Center
Work on presentation - Community Cent r
Work on summary for community center inancing options
Council meeting - Community Center
Meet with staff and architects
Prepare for town meeting
Prepare for town meeting
Attend Town Meeting
Meet with task force
Project administration
Total Due This Month:
Total Balance Due:
~r ~_: "~~
-
\\~~\
..., ;,,;S'::S'
Hours Amount
2.00
1.00
2.00
2.00
3.00
1.00
3.00
2.50
1.25
2.00
3.50
3.00
1.00
1.50
3.00
2.00
1.00
210.00
105.00
210.00
210.00
315.00
105.00
315.00
262.50
131 .25
210.00
367.50
315.00
105.00
157.50
315.00
210.00
105.00
34.75 $3,648.75
PLEASE KEEP WHITE COpy FOR YOUR FILE A 0 REMIT PINK COpy WITH PA YMENT TO:
EHLERS & ASS elATES, INC.
3060 Centre P inte Drive
Roseville, MN 5 113-1105
(612) 697- 500
$3,648.75
.
Monticello HRA
City Hall
P.O. Box 1147
Monticello, MN 55362
KENNEDY & GRAVEN
Charte d
200 South Sixth Seet, Suite 470
Minneapolis, M 55402
(612) 3379300
,-,:':\.
;.';)\"SO
-,' \-
~(~O .\ \
CLIENT SUMMARY February 10, 1998 ~
\\ ~
Through January 31, 1998
MNI95-00007: Purchase of225 West River S eet $ 14.70
Services Rendered: $ 13.90
Disbursements: $ 0.80
Balance Due: $ 14.70
.
." , . ...~). .," ....."
'", I ,.... " ~~ :r(,~ I "il "," I . ...." .~. ;.
-... '."-', ,. . . ,.' ,.
~';,;.J. ~~':..: "\.'./:..,-,:.. ~.~.~>..t: ::';1 ,~.:jI\'r~~7!'"~,:.'
I;. ~;":~" ..:r ~ . ~. ;: ~~ and fr~JJt ~-I(l ;,~'i
'Jf :;,. ~..:' ;f/J.'1 ) ~".'
.
.
.
KENNEDY &
Chartere
200 South Sixth Stre t, Suite 470
Minneapolis, M 55402
(612) 337- 300
February 10, 1998
Monticello HRA
City Hall
P.O. Box 1147
Monticello, MN 55362
MN195-00007: Purchase of225 West River Str et
Invoice # 1599
Through January 31, 1998
For All Legal Services As Follows:
01/22/98 CHT Phone call with 0 Kor pchak: re purchase
agreement
Total Services:
For All Disbursements As Follows:
01/27/98
Photocopies
Total Disbursements:
Total Services And Disburse ents:
0.10
13.90
$
13.90
$
0.80
0.80
$
14.70
.
.
.
Through January 31, 1998
For All Legal Services As Follows:
01/21/98 SJB Phone call with 0 Kor pchak re various TIF
questions
01/30/98 SJB Phone call with 0 Kor pchak re Green Acres;
memo re same
KENNEDY & RAVEN
Chanere
200 South Sixth Stre t, Suite 470
Minneapolis, M 55402
(612) 337- 300
February 10 1998
City of Monticello
Ollie Koropchak
City Hall
P.O. Box 1147
Monticello, MN 55362-9245
MN 190-00041: Redevelopment - General
Invoice # 1579
Total Services:
For All Disbursements As Follows:
01/30/98
Fax
Total Disbursements:
Total Services And Disburse ents:
,'" s",\
r'\~ y') ...
\' ,.'
1-"
G-~Q~
[ ~ ":,~rJ:= J
<s\.-c-..- w[ ~~
0.50
67.00
234.50
1.75
$
301.50
$
0.00
0.00
$
301.50
.
HRA AGENDA
MARCH 4, 1998
7.
n 1
a)
b)
.
.
c)
D'
225 West River Street - Enclosed fo your review is a copy of the title insurance
prepared for the HRA by Wright Tit e Guarantee. You will note the title company
questioned the vague legal descripti . n and would not insure the title as such. The
legal description is being revised and given a new description by the seller, Irwin
Hawkins. It is understood the seller has negotiated with the property owner to the
north and agreed upon a new legal d scription for the said two parcels. This will
be via a deed. Closing is antipicated for May 1, 1998. It has been the intent of the
lIRA to demolish this parcel. Demo ition costs of under $10,000 need 2 quotes,
costs between $10,000-$25,000 nee 2 or more quotes or sealed bids, and over
$25,000 must go out for bids. In a dition to the house, there are a number of
downed-trees and 2 sheds on the p cel.
225 Front Street - Marion Carlson s been contacted for her interest to be on the
March lIRA agenda to respond to t e BRA purchase option offer of $130,000.
She anticipates completion of their ppraisal in two weeks and perhaps will be at
the April lIRA meeting.
3 Walnut Street - Larry ScWief or h' s attorney continue working on clearing the
title.
Green Acres Legislative Update - T e Cities of Cottage Grove and Monticello
have submitted a bill to amend the reen acres restriction as related to the use of
TIF: At least 85% of a manufacturi g facility must be used for manufacturing or
production. On February 13, I atte ded the Senate Hearing and was prepared to
testify; however, the proposed bill ad little discussion and was forwarded on as a
technical change. Since that time, i appears the revenue or tax committee has
some apprehension to including w ehousing and distribution. I have been in
contact with both Senator Ourada d Representative Olson and they have been
supportive and active in our efforts. Steve Bubul and myself may need to be at
the Senate and House Hearings on ebruary 25.
John BicWer - John remains interes ed in establishing and relocating "The Skillet".
Decision will be based on obtaining necessary financing.
David Bell - Since the City Council did not adopt the resolution for use of tax
credits for Outlot A, Country Club anor, the City Administrator or I have not
heard from Mr. Bell. The Council irected staff to do a complete analysis of the
two submitted proposals for submi tal to the Council the first meeting in March.
Marketing Committee - A second eeting for development of a web-site,
marketing plan, and ready-for-busi ess plan is scheduled for March 20. The IDC
has begun to collect data on the co t of doing business and the assistance provided
in both Monticello and other co unities.
HRA Annual Meeting - April 1, 19 8, will be the annual meeting of the BRA.
Elections or appointments and fin cial reports will be on the agenda.
d)
e)
f)
g)
h)
1
American Land Title Association Commitment. 1966
COMMITMENT FOR ITLE INSURANCE
ISSUE BY
TITI..,E
STEWART TITLE GUARANTY COMPANY, A Texas orporation, herein called the Company, for a valuable
consideration, hereby commits to issue its policy or pol, cies of title insurance, as identified in Schedule A, in
favor of the proposed Insured named in Schedule A, as owner or mortgagee of the estate or interest covered
hereby in the land described or referred to in Schedule A upon payment of the premiums and charges therefor;
all subject to the provisions of Schedules A and B an to the Conditions and Stipulations hereof.
This Commitment shall be effective only when the id ntity of the proposed Insured and the amount of the
policy or policies committed for have been inserted in chedule A hereof by the Company, either at the time
of the issuance of this Commitment or by subsequent endorsement.
This Commitment is preliminary to the issuance of s ch policy or policies of title insurance and all liability
and obligations hereunder shall cease and terminate s x months after the effective date hereof or when the
policy or policies committed for shall issue, whichever fir t occurs, provided that the failure to issue such policy
or policies is not the fault of the Company.
Signed under seal for the Company, but this Com itment shall not be valid or binding until it bears an
authorized Countersignature.
IN WITNESS WHEREOF, Stewart Title Guaranty Co pany has caused its corporate name and seal to be
hereunto affixed by its duly authorized officers on the' ate shown in Schedule A.
TITLE
~#td.~~
PresIdent
AuthW~I~~fOfl LE GUARANTEE CO.
PO BOX315
Compar1W9 SOUTH SECOND STREET
BUFFALO, MINNESOTA 55313
City. State
005 . UN . Rev. 3/78
SCHED LE A
Commi tment No.:
98020056
ABSTRACT PROPERTY
.
Effective Date:
February 02, 1998 at 8:00 a.m.
Prepared For:
Housing and Redevelopment Authority
in and for the City of Monticello
Inquiries should be directed to:
Wright Title Guarantee Compan
Buffalo: 682-2023 Metro: 477-
Elk River: 441-5465
Monticello: 295-6567 Metro 33 -7102
1. Policy or policies to be issued:
Amount
(a) XXX ALTA Owner's Policy
$55,700.00
Proposed Insured:
Housing and Redevelopment A thority
in and for the City of Mont cello
(b) ALTA Loan Policy
Proposed Insured:,
.2.
The estate or interest in the Ian
Commitment and covered herein is
described or referred to in this
Fee Simple.
3 .
Title to said estate or interest
date hereof vested in:
n said land is at the effective
Irwin D. Hawkins
4. The land referred to in this Comm"tment is located in the County of
Wright, State of Minnesota, and d scribed as follows:
The South Half of Lots 1 and 2, Bock 54, Townsite of Monticello,
Wright County, Minnesota.
Property known as: 225 West River Street, Monticello, MN 55362
.
STEWART TITLE
GUARANTY COMPANY
.
.
4 .
.
SCHE; ULE B
Commitment No. 98020056
Schedule B of the policy or policies to be issued will contain
exceptions to the following matte s unless the same are disposed
of to the satisfaction of the Com any:
1. Defects, liens, encumbrances, adv rse claims or other matters,
if any, created, first appearing 'n the public records or
attaching subsequent to the effec ive date hereof but prior to
the date the proposed Insured acq ires for value of record the
estate or interest or mortgage th reon covered by this
Commitment.
2 .
STANDARD EXCEPTIONS:
a) Facts which would be disclosed
of the premises herein describ
b) Rights and claims of parties i
c) Mechanics', Contractors' or Ma
claims, if any, where no notic
by a comprehensive survey
d.
possession.
erialmen's liens and lien
thereof appears of record.
SPECIAL EXCEPTIONS:
3 .
Taxes payable in 1998 are not yet available. Taxes payable in 1997
in the amount of $618.30 and prio years are paid in full. Tax
I.D. No. 155-010-054011 (homestea ).
Special Assessments.
NOTE: We have not yet received 0 r special assessment search.
5.
The legal description to the prop
to exact location as the Townsite
North/South direction. A survey
property as occupied, and there s
with the adjoining property owner
verification of liens, ownership,
rty is open to interpretation as
of Monticello does not run in a
ay be required to redescribe the
ould be an exchange of deeds
to the Northeast. Subject to
etc of said adjoining owners.
6. A Document of conveyance in favor of Housing and Redevelopment
Authority in and for the City of onticello must be established of
record.
NOTE: The document of conveyance must comply with Minnesota
Statute 1031.235 regarding Well D'sclosures.
NOTE: Properties in all Counties within the State of Minnesota
must comply with State Laws/Count Laws of 1994 regarding
Individual Sewage Treatment Syste s.
7.
If you should have any questions
contact Linda Opsal at 682-2023 0
egarding this Commitment, please
477-6312.
STEWART TITLE
GUARANTY COMPANY