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HRA Agenda 03-04-1998 . . . 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. . . 2. . 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 . . I 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 . . . 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 . 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. $14,413,597 3/03/98 ccadopt. , 23 . . . HOUSING AND REDEVEL PMENT AUTHORITY t~ AND FO THE CITY OF MONTtCEL 0, MINNESOTA RESOLUTION N . RESOLUTION OF OF CIALINTENT TO REIMBURSE EXPENDITURE FOR ARMORY PROJECT WHEREAS, I reasury Regulations, Sect on 1.150-2, provides that the proceeds of tax-exempt bonds will not be deemed to be sp if they arE: used to reimburse pri or expcndltures. unless certain conditlOns arc met nd WHEREAS. the Authority and the City f Monticello expect to incur expenditures with respect to the Armory Project which may be initially made from sources other than the proceeds of a borrowing, ut which are intended to be relmburs.ed from the proceeds of bonds or other obligations ssued by or on behalf ofthe Authority or the City; NOW THEREFORE. BE II RESOL YE , by the Housing and Redevelopment Authority in and for the City of Monticello, M' esota. as follows: I, The Authority reasonably intends to ake expenditures for the Armory project and reasonably intends to reimburse itself for ~u h expend1tures tram the proceeds of debt to be 15~ued by or em behalf of the Authori or the City of Monticello in the maximum principal a.mount of$ 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 . 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 . . . 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 . . . 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 . . . 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 $50.00 '1.97 p,,_ 1 4Unr.01 WX4 . . . FEB 18 '98 10:23RM EHLERS & RSSOCIRTES 02118198 MonIi~lo HAl\.: ,000 I.f. Building al7.n. NTICELLO, MINNESOTA :(-. P,3/S peRIOD BEGINNING Yrr.. Mlh. Yr. .'b.o' 02-01 19911 0.5 08-01 1998 1.0 02-01 1999 1,5 08-01 1999 2,0 02-01 2000 2.5 08-01 2000 3,0 02-01 2001 3.5 08-0' 2001 4.0 02-01 2002 4.5 08-01 2002 5.0 02.01 2003 5.5 OS.01 2003 11.0 02-01 2004 8,5 08-01 2004 7.0 02-01 2005 7.5 08-01 2005 8.0 02-01 2006 8.5 08-01 2008 0.0 02-01 2007 0.$ 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.& . . . 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 $2,06 \ . . . FEB 18 '98 10:24AM EHLERS & ASSOCIATES 02l1l1198 MOII1lcellO HAil: 2.000.... Building 817.5% PERIOD BEGINNING Yrs, Mlh. Yr. 0.0 02-01' 111118 0.5 08-01 1998 1.0 02-01 1999 1.5 08-01 1999 2.0 02.01 2000 2.5 08.01 2000 3.0 02.01 2001 3.5 OQ.-01 2001 4.0 Oa-ol 2002 4,5 0&-01 2002 5,0 02-01 2003 5,5 08-01 2003 8.0 02.01 2004 15.5 08-01 2004 7.0 02-01 200S 7.5 OQ.-Ol zOOS 8.0 02.01 2006 8.5 08-01 2006 9.0 02-01 2007 9,5 08.01 2007 10,0 02.01 2008 10.5 08-01 2008 11.0 02-01 2009 11.5 08-01 20011 12.0 02-01 2010 12.5 08-01 2010 13.0 02-01 2011 13.$ 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 . . . 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