HRA Agenda 04-01-1998
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MONTICELLO HOUSING AND REDE ELOPMENT COMMISSIONERS
WEDNESDAY, A RIL 1, 1998
6:00 P.M. TOUR (industrial and hou ing sites and Hawkins parcel)
7:00 P.M. ANNUAL MEETING
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ANNUAL MEET , G AGENDA
MONTICELLO HOUSING AND RE EVELOPMENT AUTHORITY
Wednesday, Aprill, 998 - 7:00 p.m.
City H II
MEMBERS: Chair Brad Barger, Vice Chair Steve Andrews, Darrin Lahr, Bob Murray, and Dan
Frie.
COUNCIL LIAISON:
Brian Stumpf.
ST AFF:
Rick Wolfsteller, Jeff O'Neill, and 0 lie Koropchak.
GUESTS:
Paul Ederer, Allied Companies, Inc.
Steve Krenz, Midwest Graphics
Mike Cyr, Front Porch Assoc.
1. CALL TO ORDER.
2. CONSIDERATION TO APPROVE THE F BRUARY 4, FEBRUARY 11, AND
MARCH 4, 1998 HRA MINUTES.
3.
CONSIDERATION OF ADDING AGEND ITEMS.
4_
CONSIDERATION TO AUTHORIZE ES ABLISHMENT OF A TIF DISTRICT FOR
A MANUFACTURING PROJECT.
5. CONSIDERATION TO AUTHORIZE ES ABLISHMENT OF A TIF DISTRICT FOR
A HOUSING PROJECT.
6.
CONSIDERATION TO ELECT 1998
REPRESENTATIVES.
OFFICERS AND APPOINT COMMITTEE
7. CONSIDERATION TO REVIEW AND A CEPT THE YEAR-END FINANCIAL
REPORT FOR THE HRA GENERAL F AND TIF FUND.
8. CONSIDERATION TO REVIEW AND C ARIFY THE VALUES AS TO CERTIFIED
REAL ESTATE OR ASSESSED VALUE .
9. CONSIDERATION TO CO-SPONSOR A LF OUTING WITH THE CHAMBER OF
COMMERCE.
10. CONSIDERA TION FOR REVIEW AND ISCUSSION OF TIF POLICIES FROM
THE CITY OF SA V AGE.
NT OF HRA MONTHLY BILLS.
11. CONSIDERATION TO AUTHORIZE P A
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12. CONSIDERATION OF EXECUTIVE DI CTOR'S REPORT.
13. CONSIDERATION OF INFORMATION ITEM ONLY: RETAIL MARKET
EVALUATION.
14. CONSIDERATION OF COMMITTEE RE ORTS:
a) MCP - Steve Andrews
b) Marketing - Darrin Lahr
c) Community Center Task Force - Ste e Andrews
15. OTHER BUSINESS.
16. ADJOURmAENT.
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MINU S
MONTICELLO HOUSING AND RE EVELOPMENT AUTHORITY
Wednesday, February , 1998 ~ 7:00 p.m.
City H
MEMBERS PRESENT:
Chair Brad Barger, V ce Chair Steve Andrews, Darrin Lahr, Bob
Murray, and Dan Frie
COUNCIL LWSON PRESENT: Brian Stumpf
STAFF PRESENT:
Rick Wolfsteller, Jeff 'Neill, and Ollie Koropchak.
GUESTS:
Barry Pluth, BBF, Inc.
Brad Johnson, Lotus Realty Services
Dan Greensweig, HRA Attorney
David Bell, Freedom Development
1. Calho Order.
Chair Barger called the HRA meeting to ord at 7:00 p.m.
2.
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Bob Murray made a motion to approve the anuary 28, 1998 HRA minutes. Dan Frie
seconded the motion and with no correction or additions, the minutes were approved as
written.
The January 7, 1998 HRA minutes were tab ed.
3. Consideration of addinlI alIenda items.
Koropchak requested two items be added to the agenda under No. 9 Other Business.
Consideration to approve the Certificate of ompletion for Fay~Mar expansion and
consideration of interest to hire a lobbyist to amend the Green Acres clause.
4. n n
BBF, Inc.
The Private Redevelopment Contract was r . sed as followed:
1. Redeveloper must obtain agreements wit each tenant agreeing to agreed~upon
payments of which the tenant is entitled.
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HRA MINUTES
FEBRUARY 4, 1998
2. Relocation consultant must review payme ts to identify the amounts constitute true
relocation costs not acquisition of leasehold ' terest. Only relocation costs subject to tax
increment reimbursement.
3. Because some relocation costs paid to te ants will not be reimbursed, site improvement
costs will be eligible items. The redeveloper '11 receive up to $500,000 for relocation,
demolition, administrative, and site improve ent costs.
4. The redeveloper will indemnifY the HRA:6 r any claim relating to relocation benefits. If
the redeveloper is required to make such pay ent within two years of date of contract, the
HRA will issue an additional tax increment n te in the amount of 50% of the payment, a
maximum of $50,000.
5. The HRA will received the first 10% ofth tax increment plus $45,000 and the
redeveloper will receive the remaining tax in rement through February, 2020.
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Attorney Dan Greensweig highlighted the in emnification clause and tenant waivers which
were revisions resulting from the motion ap oved by HRA on January 7, 1998,
addressing the liability concerns associated ith relocation costs versus buyouts,
Additionally, the developer requested a lette of intent from the HRA stating it would
have used its powers of eminent domain to a quire the Skillet Restaurant at 206 West 7
Street had the property owner not entered in 0 an agreement to sell the property, For the
purpose of the IRS, this allows the owner of the Skillet Restaurant, three years to reinvest
in a new restaurant.
With a minor correction to the name of a titl of an article within the contract, Bob
Murray made a motion to approve the Contr ct for Private Redevelopment by and among
the HRA and BBF, Inc. with the said above evisions. Dan Frie seconded the motion and
with no further discussion, the motion passe unanimously.
Dan Frie made a motion stating had the pro erty owner not entered into an agreement to
sell the property known as the Skillet Resta ant, 206 West 7 Street, the lIRA would have
used its power of eminent domain to acquire the property. Bob Murray seconded the
motion and with no further discussion, the otion passed unanimously.
5.
David Bell, Freedom Development Consult ts, stated his increased purchase offer from
$151,675 to $300,000 was competitive in n ture. Submitting a feasibility report to HRA
members, Mr. Bell affirmed the developmen of a mix of 36 affordable-rental units (2 and
3 bedroom) utilizing tax credits and 42 mar et-rate townhouse units that would be for sale
to private owners. The proposed developm nt for Outlot A, Country Club Manor. The
feasibility report used a classification rate of2.9% rather than the 1.0% typically used for
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HRA MINUTES
FEBRUARY 4,1998
affordable housing projects, this results in g nerating a greater amount of taxes and tax
increment. Affordable rents would range be ween $495 and $565 for families oflow to
moderate income levels.
Mr. Bell continued by requesting TIF assist ce in the amount of$331,561 NPVor
$597,700 at 9% over 13.9 years (20.3% oft e project costs) maximizing the 10 points
awarded for local participation. Flood-stric en areas will receive 35 points; however, Mr.
Bell informed commissioners he plans to de elop Outlot A, even without the award of tax
credits.
Koropchak submitted a comparison of the D cember proposal and the February request
from Mr. Bell noting the purchase offer to t e City increased from $151,675 to $300,000.
In the December proposal, storm sewer ch e, 7 Street sidewalk installation, and city
park land acquisition were improvements id ntified for TIF assistance. Utilizing the city
engineer, WSB, the improvement costs wer estimated to be approximately $87,500.
Ehler's TIF cashtlow using a 1. 0% classifica ion rate estimates a net tax increment of
$111,743 NPV or $228,800 over 14 years a 9%. Compare this with Mr. Bell's request of
today for $331,561 NPV ofTIF assistance. The improvements now identified for TIF
assistance are site utilities, curb, landscapin and additional fill and berm plus land
acquisition. Ehler's TIF cashtlow using a 2. % classification rate estimates a net tax
increment of $324,055 NPV or $667,7200 r 14 years at 9%. Typically, the HRA pay-
as-you-go notes have a 7.5% interest rate ra her than the requested 9% rate. Mark Ruff
felt the requested 9% was high and inconsist nt with HRA standards.
Brad Barger made a motion to approve TIF ssistance in the amount of$331,561 NPV
for the tax credit application of Freedom De elopment Consultants. Proposed
development of36 low and moderate-inco level rental units (2 and 3 bedroom) on a
portion of Outlot A, Country Club Manor. he motion was seconded by Steve Andrews.
No interest rate or length of term was dete "ned by the HRA. With no further
discussion, the motion passed unanimously. The City Council will consider adoption of a
resolution supporting tax credit application r the 36-unit townhouse development at
their regular meeting of February 9, 1998.
Upon Mr. Bell's request, Steve Andrews mea motion authorizing the Executive
Director to draft a letter ofHRA support fo development of the low and moderate
income-level rental unit project. Bob Murra seconded the motion and with no
discussion, the motion passed unanimously.
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HRA MINUTES
FEBRUARY 4, 1998
6.
Jeff O'Neill reported on the small group me . g of3:30 p.m., noting the group has met
twice with discussion centering on the task orce recommendation to include water in the
facility. The group focus has been on proj t costs and location; however, no project or
program cost cuts have been proposed. It as suggested that staff prepare financing
options to study including lease revenue an GO Bonds and lease revenue and GO with
Liquor Funds and other sources for the n small group meeting of February 9,5:00 p.m.
Perhaps the HRA could review the small gr up recommendation prior to the joint
IDCIHRA meeting of February 11. Earlier, a target date of February 9 or 23 was
determined as the date to finalize the design and financing of the community center in
order to keep the project on schedule.
7.
Bob Murray made a motion authorizing pa ent of the HRA bills with the exception of
the armory invoice. Seconded by Steve An rews and with no discussion, the motion
passed unanimously.
8.
Commissioners accepted the report without uestions or comments.
9.
Other Business.
a) Consideration to approve the Certificate f Completion for the Fay-Mar expansion _
With issuance of the certificate of occupanc by the Building Department for the
expansion of Fay-Mar, Brad Barger made a otion to approve the Certificate of
Completion for the Second Amended and R stated Contract for Private Redevelopment
between the HRA and Ron Musich. Dan Fri seconded the motion and with no
discussion, the motion passed unanimously. The expansion consisted of20,000 sq ft
manufacturing space and the creation of20 ew jobs at $8.50 ph within two years from
issuance of the Certificate of Completion.
b) Consideration of interest to hire a lobbyi to amend the Green Acres clause -
Koropchak informed HRA members that Att mey Bubul contacted her relating to a City
of Cottage Grove bill before legislators to end the Green Acres clause to include
warehousing and distribution. Knowing Mo ticello' s issue with Green Acres (at least
85% of a facility must be for manufacturing) as it relates to the proposed Midwest Graphic
expansion, Bubul asked if Monticello would . e to co-sponsor the bill. Estimated cost for
lobbyist $3,000, timing is critical. Perhaps e land owner of the Monticello Commerce
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HRA MINUfES
FEBRUARY 4, 1998
Center would assume the payment or a porti n of the payment. HRA members appeared
interested~ however, they authorized the Ex utive Director to check with Charlie Pfeffer.
10. Adjournment.
Brad Barger made a motion to adjourn the meeting. Steve Andrews seconded the
motion and with no further business, the me ting adjourned at 8:50 p.m.
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Chair
o~ ~C;fIl~~
Executive Director
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Minutes HRAlIDC Joint Workshop:
02/11/98
In attendance: From IDC: Shelly Johnson, Bob osford, Bill Tapper, Dick Van Allen,
Tom Ollig, Tom Lin quist
From HRA: Dan Frie, Steve And ews, Brad Barger, Bob Murray, Darrin
Lahr
Others in attendance: Mayor Bill Fair, Ci Staff, Ollie Koropchak, Rick WolfstelIer,
Ron Bray WSB & A soc., Steve Grittman NAC, Charles
Pfeffer of Pfeffer Co pany, Inc. and Kitty Baltos of the
Monticello Chamber
1. See agenda, (attachment A)
2. Darrin Lahr of the HRA gave a presentation (attachment B) on the areas that the HRA
identified as areas needing attention with re ard to commercial and retail growth and
retention.
The focus of the presentation was on "devel p and encourage business retention and
expansion."
It should be noted that the City of MonticeU has set aside $30,000.00 to develop a
marketing strategy.
3. Dick Van Allen of the IDC gave a presentat on (attachment C) on the areas that the
IDC identified as areas needing attention wi h regard to industrial growth and
retention.
The focus of the presentation was on "a nee for a marketing strategy and an orderly
industrial development strategy."
4. The HRA and IDC then looked at areas poi ted out in each presentation where
synergies exist, these areas were identified
Marketing
Visitations
Streamline development pro ess
Land acquisition developme t process
Web Site
Investigate use ofTY adv. P omotions
5. Discussion then centered on trying to devel p a "Ready for business sequence" of
areas to focus on,
a. Comparison ofv ous City benefits (developer friendly)
b. Review to promote permit process within City
c. How do we partne to market available industrial property
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6. Ollie was asked what process takes place wh n a business calls her to ask about
Monticello because they are thinking of relo ating or starting a new business.
1. Call is forwarded to Ollie.
2. She uses an Industrial Lead S eet to ask
questions about size of buildi g needed, # of employees, wage paid,
# acres needed, if this is a reI cation, expansion or new business.
3. Informs the caller about poss 'ble financial packages the City has and
what infrastructure is availab e.
4. Offers to send information to the caller about Monticello and financial
information on a local and re ional scale.
5. Tries to set up a visit betwee her and the caller to visit Monticello.
6. If the prospect is interested d has determined that he/she is willing to
look seriously at Monticello en time is spent with the City Planner
and Building Inspector to det rmine what is needed in the way of
plans, specifications and pe its. Ok building parameters.
7. Permits are issued through a eqular process.
7. After some discussion it was determined tha the most important areas to focus on at
this time are,
a. Consistenancy (when a develope comes to Monticello today and agrees
on a process he can be assured th t the process will not change tomarrow.)
b. Develop a Marketing Plan, talk out whats good about Monticello
c. List of who has/will do what
(Ollie noted that she is working with a smal group on developing a marketing plan)
8. A presentation was given by Ron Bray of sa and Associates the overview was
titled "City of Monticello Transportation I provements" (see attachment D)
9. Meeting adjourned at 9:32 p.m.
Respectfully submitted;
Tom Ollig, Secretary IDC
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lI/1;;ch 177 i!17 I /III
AGE A
HRA/IDC JOINT WORKSHOP
Wednesday, February 11, 1998 - 7:00 p.m.
City H 1
HRA COUNCIL LIAISON:
HRA MEMBERS: Chair Brad Barger, Vice hair Steve Andrews, Darrin Lahr,
Bob Murray, and Dan F e.
IDC MEMBERS: Chair Dick VanAllen, Vi e Chair Tom Lindquist, Secretary Tom
Ollig, Don Smith, Shelly Johnson, Ken Maus, Kevin Doty, Bill
Tapper, Bob Mosford, an Chamber Chair Bob Grabinski.
IDC COUNCIL LIAISON:
STAFF: Rick Wolfs teller, Jeff O'Neill, F ed Patch, and Ollie Koropchak.
GUESTS: Ron Bray, WSB, Inc.
Steve Grittman, Northwest Ass ciates, Inc.
7:00 P.M. 1.
CALL TO ORDER. IDC hair Van Allen.
7:00 P.M. 2.
INTRODUCTIONS.
7:10 P.M. 3.
OVERVIEW OF THE C UNCIL VISION/POLICIES AND
PRIORITIZATION LIST.
7:20 P.M. 4. BACKGROUND AND 0 ERVIEW OF THE ECONOMIC
DEVELOPMENT PLAN S PREPARED BY THE HRA.
Commissioner Lahr.
7:35 P.M. BACKGROUND AND 0 ERVIEW OF THE OBJECTIVES OF
THE IDC. ChairVan en.
Discussion: What objectives d tasks are common to both the HRA
and IDC?
Workshop goal: Is there an a eement of support among the HRA and
IDC to work toward the achiev ment of the identified common tasks?
8:10 P.M. 5. PRESENTATION ON T E PROPOSED MAJOR TRAFFIC
CIRCULATION BY RO BRAY.
Discussion on process and step for implementation.
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;/lIinh t11enl- /' B "
HRA AGENDA
NOVEMBER 5, 1997
10.
A. Reference and Background:
After the joint meeting between the commi sions and council and the commissions,
council, and IDC; the HRA selected Darrin Lam and Bob Murray to begin drafting a work
plan which supports the Council's adopted isions and policies.
Lahr and Mwray began by addressing the s' priorities identified under HRA leadership as
ranked highest by the Council. Concentrati n centered around "develop and encourage
business retention and expansion." (the rev nue column of the city budget). In the Hrst
draft which is enclosed the group asked the question: "How do we achieve?" The first
draft of the action plan is enclosed for disc ssion prior to moving ahead.
Thc six projcct descriptions idcntified u der the HRA leadership were:
1.
Establish a reserve fund for acquisifon of industrial land. Established/in
progress.
2.
Develop a loan program and guide. es encouraging remodeling of aging housing.
3. Develop and encourage business ret ntion and expansion. Being addressed.
4. Land acquisition as available to ca out downtown riverfront redevelopment. III
progress.
5. Explore the potential purchase of B ROW in core city area. Explore shared use.
In progress under the City leade hip for the National Guard Training and
Community Center.
6. Establish commercial/retail revolvin loan program. Established.
Within the proposed 1998 City Budget is t request for $75,000 for industrial land
acquisition (matching), $30,000 for market" g, and $35,000 for land acquisition in
redevelopment area. The Council directed he City Administrator to reduce the proposed
levy increase 0 f 13 % by 5-6%. The next b dget meeting 0 f the Council has not been
scheduled.
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DRAFTC PY
ECONOMIC DEVELOPM NT ACTION PLAN
IN AND FOR TilE CITY OF MO TICELLO, MINNESOTA
Housing and Redevelo Illent Authority
Economic Developm nt Authority
1998-2002
Mission
Thc mission of the Economic Development Action P an is to carry out the City of Monticello
Community Vision & Governing Policies adopted by the City Council on September X. 19lJ7.
The priority List developed by the City Council supp rts the community vision and goveming
policies and establishes objectives for the BRA and DA. The City Council will direct resources
to achieve the vision. The Economic Developmcnl A tion Plan is a rive-year plan and is drallcd ill
a realistic and measureable time frame.
VISION: Economic - Our support of economic dev lopment will be directed toward the crealion
of jobs that are not just "liveable" but prosperous, stimulate the local economy, and capable 0 f
supporting our families and community.
. Objectivc - To develop and encouragc business rete tion and expansion.
(How do we achieve'!)
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BUSINESS RETENTION (Existing Businesses)
A. Develop a good working relationship between the city and existing businesses.
1. Visit by Mayor and City Administ ator to businesses to enhance elected onicial
and staff exposure.
2. Sponsor events between the busin sses and the city (golf outing).
3. Feature a business, report current usiness events and new city policies, and
market the local fmancial assistance rograms and others in either the City
Newsletter or Monticello Times or d velop a Business Newsletter.
n: Demonstrate a fiscaUy responsible go ernment.
I. Develop a City of Monticello Bus ess Plan (including five-year profonna of
projected revenues and expenditures or plmmed development.)
2. Hold public forums.
3. Develop and utilize customer se ice feedback forms.
C. Address the work force issue.
1. Mayor endorsement ofthe Cham er of Commerce Job Fair.
2. Mayor endorsement or tile Schoo District Youth Apprenticeship Program and
explore development of a city/school cooperation.
3. Develop a partnership with techlli al colleges and centers through the career
placement office.
a. Anoka, Hennepin, St. Cloud a d Staples Technical Colleges.
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b. Wright Technical Center.
4. Host lunch and focus group discussion with technical colleges.
EXPANSION (New Businesses)
A. Establish definition of wages and tax se.
1. Tax base defined by zoning ordinance.
2. . Wages defmed by the market.
B. Establish Marketing Program.
1. Marketing Tools.
a. Brochure.
a 1. Identify marketing advant ges.
b. Visit of prospect by elected an appointed officials.
c. Trade shows.
d. Trade joumals.
e. Internet.
f. Welcome receptions.
One-year subscription to Montice 0 Times with welcome letter and City Illug.
g. Develop a five-year historical d five-year capital improvements plan as a
positive marketing tool. (Montiee 0 Progressive Improvement Program.)
2. Targeted-Marketing.
a. Define industry by SIC. (Skill d or semi-skilled labor)
b. Define incentives.
C. Clarity of development process and e pectations.
I. Define process for development in Monticello.
2. Friendly-cooperative attitude tow rd developers.
3. Lead person contact for follow-tl ough. (One voice for city and developer)
a. Site review.
b. Building permit.
c. Financial assistance programs d packaging.
d. Estimate of city occupancy an development costs.
4. Manage expectations.
a. City expectations.
b. Developer expectations.
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1997/98 IDC OALS
Prospecting/Marketing earn Plan Options
fll/culJl17eJ? -I NC n
NEW INDUSTRIAL J BS @ AN ANNUAL A VERAGE WAGE
OF AT LEAST
TO CREATE
Prospecting
Develop pro-active program
Direct prospect contact with Bill Farney, Shingo e Builders
Prospect Team: Mayor, Banker, Utility, School, ospital, Business
Host Team: Mayor, IDC Chair, Chamber Chair, and Owner, Business, & City
Develop a system to calculate development fees qui kly for industrial prospects: "Ready for
Business"
Water/Sewer Hook-up Fees
Storm Water Fees
Estimated water/sewer rates
Estimated taxes and comparisons
Marketllf.:
Develop method to market "local industrial incentiv s" Local testimony
Develop method to market "1-94 convenience - loc tion to Minnesota lakes"
Develop method to market "Neigborhood Commun ty"
Develop a targeted marketing program by identified SIC, type of job, and wages.
Presentation by Lenny Kirscht, PRG
Invite Industrial Contractors to Monticello to mark t "Our Assets"
Develop a home page for site location on Internet a d e-mail accessibility.
ENCOURAGE INDUSTRIAL BUSINE S RETENTION AND EXPANSION
BRE visits by Mayor Fair.
Evaluate and rnapout a process and timing for deve oprnent of a future industrial park:
Site selection
Annexation process
Development of Infrastructure
Acquisition of Land
Cost estimates
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Presentations:
It C /'
Lenny Kirscht, PRG
Bill Farney, Shingobee
Charlie Pfeffer, Pfeffer & C mpany
Local Industries
Show "Ready for Business" ideo
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Ron Bray
Transportation Engineer
WSB & Associates, Inc.
350 Westwood Lake Office
8441 Wayzata Boulevard
Minneapolis, MN 55426
(612) 541-4800
MONTICELLO AREA ~
TRANSPORTATION IMPROVEMENTS
FALLON AVE OVERPASS
. NEW CONNECTION OVER 194
. CONSTRUCT IN 5 ~ 10 YEARS
. FUNDING SOURCE NOT IDENTIFIED
(Federal, Other)
MONTICELLO AREA -
TRANSPORTATION IMPROVEMENTS
CO RD 118 PEDEsmlAN OVERPASS
. NEW PEDESTRIAN BRIDGE OVER 194
. CONNECT SCHOOL BL VD TO CR 75
. CONNECT MEADOW OAK
. CONSTRUCTION IN 1999/2000
. CR 118 @ 20,000+ VEH IN 2015
I'D 'c
CITY OF MONTlCELLO-
TRANSPORTA TlON IMPROVEMENTS
. OVERVIEW
1998
TO ?
MONTICELLO AREA ~
TRANSPORTATION IMPROVEMENTS
7TH STREET CONNECTION
. WASHINGTON TO CO RD 75
. CONSTRUCTION IN 199811999
. 4000 - 6000 VEHICLES / DA Y IN 2015
. TRAFFIC SIGNAL A T CO RD 75 ?
MONTICELLO AREA -
TRANSPORTATION IMPROVEMENTS
CO RD 118 INTERCHANGE
. ACCESS STUDY BEING COMPLETED
. FINALIZE MI1IOOT APPROVAL
. OBTAIN FHWA APPROVAL
. CONsmUCT RAMPS FOR WESTERN
ACCESS
. 2 TO 5 YEARS - FUNDING?
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MONTICELLO AREA -
TRANSPORTATION IMPROVEMENTS
CO RD 75 IMPROVEMENTS
. CO RD 39 TO WASHINGTON ST.
. LEFT TURN CHANNELlZA TlON
. 4 - LANE FROM 7TH ST. TO CR 39
. LANDSCAPING? / MCP PLAN
. WRIGHT COUNTY PROJECT
. CONSTRUCTION IN 1999
MONTICELLO AREA-
TRANSPORTATION IMPROVEMENTS
INTERSTA TE ACCESS APPROVAL
. Regional Need
'.c . Alternative
Reasonable Full Access I Typical Design
. Safe MnIOOT Request
. Fits Land Use Plan
. Federal Approval
. District Office @ Sf. Paul
. New @ Regional Office in Illinois
. 6 mos. - 2 Year Process
MONTICELLO AREA .
TRANSPORTATION IMPROVEMENTS
CHELSEA ROAD / SCHOOL BL VD
. School Blvd Extension West
199811999 Construction
. City Plat . Dw.Agreement wi Kjellberg
. Parle & Ride . Assess. I Lot Development
. Chelsea Road
Marvin Road In 19991
Ext. West In Township
Western Arterial to Accom Dev.
Future: Extend West to Imerchange
!lplf
MONTICELLO AREA -
TRANSPORTATION IMPROVEMEN1S
T.H. 25 (/94 TO KJELLBERG'S PARK)
. NEW CHELSEA ROAD INTERSECTION
. SIGNALlZA nON
. 4- LANE WITH LEFT TURN TREA TMENT
. NEW SCHOOL BL VD INTERSECTION
. MODIFY 194 INTERCHANGE / LOOP
RAMP
. RELOCA TE PARK AND RIDE LOT
. CONSTRUCTION IN 199811999
MONTICELLO AREA -
TRA NSPOR TA TlON IMPROVEMENTS
FUTURE INTERCHANGE
. Orchard Road / CR 75
. Western Access to Monticello Area
. Full Access
. 10 - 20 Years
. Funding - Local $
MONTICELLO AREA -
TRANSPORT A TION IMPROVEMENTS
UPDA TE TRANSPORT A T/ON PLAN
. Existing 1994 Plan
. Update Land Use Plan
. 2015 to 2020 Projections
. Study Western Access
. Confirm \ Update Wright Co. Nos_
. Set Needs \ Improvement Plan
. Identify Funding Scenarios
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MINU S
MONTICELLO HOUSING AND RE EVELOPMENT AUTHORITY
Wednesday, March 4 1998 -7:00 p.m.
City H II
MEMBERS PRESENT:
Chair Brad Barger, ice Chair Steve Andrews, Darrin Lahr, and
Bob Murray.
MEMBER ABSENT:
Dan Frie.
STAFF:
Jeff O'Neill and Ollie Koropchak.
COUNCIL LIAISON PRESENT: Brian Stumpf
GUESTS:
Ron Ankey, AKA, Inc.
Dan Greensweig, Kennedy & Grave .
Greg Hayes, Shingobee, Inc.
1. Call to order.
Chair Barger called the BRA meeting to or er at 7: 00 p.m.
2.
4 F
11
F
25 1998
Steve Andrews made a motion to approve t e February 25, 1998 BRA minutes. Bob
Murray seconded the motion and with no c rrections or additions, the minutes were
approved as written.
Brad Barger made a motion to table approv of the January 7, February 4, and February
11, 1998 BRA minutes. Darrin Lahr secon ed the motion and with no further discussion,
the motion passed unanimously. Minutes w re not submitted.
3. Consideration of adding agenda items.
Koropchak requested adding one item to th agenda under Other Business: 8a. Update of
eminent domain proceedings resolution for -Mart parcel. Bob Murray requested adding
one item to the agenda under 8b. Clarificati n of certified real estate value and assessed
value within Private Redevelopment Contra between BRA and RDI.
1
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BRA MINUTES
MARCH 4, 1998
4.
BRA memberswere asked to consider con pt approval for funding the NG/Community
Center and to adopt of resolution of offici intent to reimburse expenditures for the
armory project. BRA members received a copy of the project costs and projected tax
impact for the full project using lease reve e bonds with and without $500,000 cuts.
Based on the small group's efforts to cut e project costs by $500,000 and to reduce the
total amount to levy through annual contri utions from the Liquor Funds and TIP funds,
the City Council approved funding the full roject ($9.4 million NG/community
center/aquatic center) through lease revenu bonds with the $500,000 cuts, an annual
contribution of $200,000 from the Liquor und, and an annual contribution from TIP.
The tax impact was narrowed to a point w ere Council passed the motion on a 3-2 vote.
.
The $500,000 reductions was project cost uts, not contingency cuts. AKA informed
HRA members if given a budget, they stick within the budget. The greatest variables are
the bidding market and interest rates. The roject materials within the bid were not
Cadillac and not low budget but middle oft e road. For instance, not concrete floors,
some carpet but not cory tile. O'Neill's co cern was the potential increase in land values.
The budget included land purchase as is; ho ever, dollars were in the budget for site
rehab. Lahr suggested for the long term be efit, the use oflow maintenance materials.
BRA small group representatives Barger an Andrews recommended 20/30% of the BRA
tax increment from redevelopment of the m I be used to reduce the levy amount as a
gesture of good faith ( commit funds) as we as to issue debt (issue bonds). Attorney
Greensweig informed BRA members if the commit TIP revenues to a social/recreational
facility, the BRA will need to be a party to e Operational Procedure Agreement.
Steve Andrews made a motion to use lease evenue bonds for the full project (National
Guard/core facility/aquatic center) consiste with the City Council approval and
committed 25% ($11,250) of the BRA's ual tax increment from redevelopment of the
mall toward the community center project. ob Murray seconded the motion and with no
further discussion, the motion passed 3-1. eas: Andrews, Murray, and Barger. Nays:
Lahr. Absent: Frie. Lahr voted against the otion stating the cost of the project was to
high to not allow the taxpayer a vote. Barg r expressed a change in vote because of the
reduced project costs and annual contributio s from other local funds.
.
BRA members were asked to adopt a resolu ion of official intent to reimburse
expenditures for the armory project. With t e adoption of the resolution, expenditures
from and after said date will qualifY for reim ursement from the proceeds of the lease
revenue bond. Darrin Lahr made a motion t adopt the resolution of official intent to
2
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HRA MINUTES
MARCH 4, 1998
reimburse expenditures for the armory proj ct at a project maximum principal amount of
$9.4 million. Bob Murray seconded the m tion and with no further discussion, the motion
passed unanimously.
5.
lIRA members received a copy ofTIF cas ows for a proposed 4,000 sq ft print and
6,000 sq ft print professional building. Bec use of the expense to develop, Greg Hayes,
Shingobee, Inc., was looking to the HRA D r a response of support to the idea and site of
the proposed redevelopment project. The p oject consist of acquisition of the parcel,
demolition of the unused, substandard gas s ation, and removal of three gasoline tanks and
one oil tank for construction of a two-story professional building. Mr. Hayes informed
lIRA members that he is negotiating with t 0 potential tenants and others as well as the
property owner. The proposed two-story s cture would encourage centralized parking,
consist of zero lot-lines, and complement th design standards of the CCD. The city policy
for parking is pay a fee or develop parking. Hayes is confident in working out issues with
the city, tenants, and neighbors. HRA mem ers were in agreement and liked the idea and
site of the proposed redevelopment project or Lots 13, 14, & 15, Block 36, City of
Monticello.
Working as an agent, John Sandberg, info ed HRA members he was working on two
potential different redevelopment project op ions for the same area including the gas
station parcel. He is not the owner and his i volvement consist of securing the parcels.
The redevelopment projects are larger in sc e than Mr. Hayes' project and involve four
property owners. One project is the develo ment of a mortuary and the other is a senior
housing project. Mr. Sandberg states he has been working on this for three months and
brings this before the HRA as informational d to inform them that yes, there are others
interested in redevelopment of the area. 0' eill indicated the downtown Broadway is
intended for small retail, service, eating, or to-story facilities anq he felt the Planning
Commission would not see a senior housing roject as a fit. Mr. Sandberg suggested a
swap between City, lIRA, and Grimsmo rela ing to the said site and the proposed
community center and existing city hall sites. HRA members suggested Mr. Sandberg
keep his options open and to work with O'N ill to see how his concepts fit with the
Compreherisive Plan. Developers were info ed that the next HRA meeting is April I,
1998, 7:00 p.m.
6.
Brad Barger made a motion authorizing pay ent of the HRA monthly bills as submitted
and stated. Bob Murray seconded the motio and with no further discussion, the motion
3
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HRA MINUTES
MARCH 4, 1998
passed unanimously.
7.
Koropchak: reiterated the content of the re .ort. Some HRA members did not recall if it
were the intent of the BRA to demolish the 225 West River Street structure. Liaison
Stumpf indicated renting was not the best tion, demolish or a controlled bum would be
better. Other items on the report were acc pted.
8.
Other Business.
a) Update on the eminent domain proceed ngs for the K-Mart parcel - Koropchak:
informed HRA members that upon further view of the legal documents by Attorney
Brad Larson, the Reciprocal Easement Agr ement between K-Mart Corporate, owners of
the K-Mart property, and the existing mall wners also included the mortgage company
(ies) and therefore the need to remove their condemned interests. Based on Attorney
Bubul's recommendation, Chair Barger and Executive Director Koropchak made an
executive decision and authorized amendin the resolution authorizing eminent domain
proceedings to acquire certain real property interest. The amendment to include the
mortgage company (ies). Steve Andrews ade a motion ratifYing the executive decision
made by Barger and Koropchak. Darrin L seconded the motion and with no further
discussion, the motion passed unanimously.
b) Private Redevelopment Contract betwe n HRA and RDI - Bob Murray requested the
HRA discuss and clarify the difference betw en the estimated certified real estate value
and the assessed value for single and twin h mes developed in the River Mill Addition.
The TIF Soils District reimbursement is sch duIed to begin in August 1998.
9. Adjournment.
Chair
at 9:00 p.m.
()~~~~
Ollie Koropchak:, ExecutIve Director
4
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BRA AGENDA
APRIL 1, 1998
4.
A. Reference and Background:
In May ef 1997, Mr. Steve Krenz, Midwest aphics, came befere the HRA requesting
TIF assistance fer a 44,000 sq ft productien, wareheuse, and effice facility with the
creatien ef22 new jebs a wage level betwee $7.50 - $8.50 ph with cempany paid fringe
benefits. The BRA respended faverably sub ect te the cempany's willingness te make
findings fer the "but fer" and "green acres" rovisien. The project did net meve ferward.
Mr. Paul Ederer ef Allied Cempanies, propo ed developer, and Grady Kinghorn, Christian
& Kinghorn, propesed general contractor, r quested te be en the HRA agenda in erder te
start the TIF process. Allied Preperties or huck Van Heel, will lease the newly
censtructed facility te Midwest Graphics wi an eptien to purchase. Midwest Graphics
currently ewns and occupies the facility te t e seuth efthe preposed new structure.
Midwest Graphics is currently lecated at 95 0 Fallen Avenue NE and their headquarters
in lecated in Minnetenka. Mr. Krenz lives i Big Lake.
In our cenversatien earlier this week, the si e efthe propesed facility has grown to 60,000
sq ft of effice, production, shipping/receivin and wareheusing. The pre-stress cencrete
facility will consist of 8,000 sq ft effice (4,0 0 sq ft mezzanine with elevator.) Details ef
the project and job creation is forthcoming. Because the size ofthe building has increased
te a 60,000 sq ft office/manufacturing facilit and the effice is 8,000 sq ft, the green acres
restrictien dees net apply as 15% weu1d be et mere than 9,000 sq ft.
The BRA is requested te consider the use 0' TIF assistance and to autherize establishment
efTIF District No. 1-23. This would be an ecenemic district which is subject te 10%
lecal contributien. The owner accepts pay- s-yeu-ge finance method.
TIF check list:
a) Dees project comply with Lecal TI Pelicies?
b) Does project meet the "but for" test.
c) Satisfactery number ef jobs created and wage level?
d) Satisfactory increase in tax base?
e) What dees it take te make the proje t werk? What is the projected tax increment
NPV? Level ef tax increment fin ce assistance?
f) How is local centribution being ma e?
g) Is the Pre- TIF Agreement signed d $5,000 received?
1
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HRA AGENDA
APRIL 1, 1998
Enclosed is a copy of the projected TIF Ca hflow from Ehlers and a description of the
project from the developer. No suggestion as to the level ofTIF assistance is noted since
the cashflow projections were not available upon agenda preparation.
B. Alternative Action:
1. Motion to authorize establishment fTIF District No. 1-23 an Economic District
for Allied Properties.
2. Motion to deny authorization to est blish TIF District No. 1-23.
3. Motion to table action for establish ent ofTIF District No. 1-23.
C. Recommendation:
As the BRA previously authorized establis ent of a district for Midwest Graphics, the
tenant, and if the project meets the TIF find ngs, recommendation is for alternative no. 1.
D. Supporting Data:
TIF Cashflow, description of project, and p.
2
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HOUSING
City of
TAX INCREMENT
CING POLICY
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 ill analyze and evaluate Tax
Increment Financing proposals ba ed upon the following policy
considerations. Each proj ect sh 11 be measured against these
considerations and the project's v lue shall be determined, based
upon meeting these considerations.
~. 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 commu ity.
3.
The project shall create
Monticello residents.
nd/or retain employment for
4.
The proj ect shall increase mod rate priced housing options for
area residents.
5. The project shall facilitate he redevelopment or elimination
of "subs tandard" or "bl ighted" areas as determined by the HRA.
6. The project shall facilitate t e "clean-up" of environmentally
unsound property.
7 . The proj ect shall provide addi ional public funding for public
improvements including utilit 'es and/or park development which
would not otherwise be avail Ie.
8. The project shall be deemed to promote additional desired
"spin-Off" development.
9. The project shall demons "community involvement II
including demonstrated degre s of the various factors:.
a) Local residency of the c pany 's owners and employees," or
b) Local residency of th ".contractors invol ved in . the
project, or
c) Membership in local bus'ness organizations, or
d) Other similar factors.
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MAR 3121 '98
OS/301Ga
Ehlers llIlCl AtaOCillt..., I^<;.
12I1:I2II21PM EHLERS & ASSOCIATES
MontiG8110 H A; Midwwl Grilpl'llca
Interest Rate
Tax Eldansion Rele;
Intlation Rate;
PIN
11111
1
Total
Orillin;d To Capacity Infladon Faemr;
ypa of T ax I~emenl
Type ot DeveIQpmenl:
Number of BulldlnQ Square Feet;
E$llmalfild Market Value of New ProJ'ct:
Clue Aillt on lil'lll $160,000 01 MatkeI Value
Clue Rate Market Value> $150.000
Estimated Till' Capaeity:
Estimated Taxes;
Aseeaaor's Markel Valu8ls.f.
Tsxesls.l.
2.70%
4,00%
P.2/3
7.500%
1.18 Pay 98 Estimate
0.0000%
ax
Ca~.91ly._.
2,025 Enmill" only
o
2.025 Eatlm:lhld Pay liB Tax Capaeily
1,750,000 Pay 00
68,050 Pay 00
80.299
$29.17
$1.34
Plesse be BWlIrc:l 11'111 le1'l1998 Legislature he propolled 10 I1Iduce commorcial class ra* frtlm 4o/A IQ 3.5%
PlIge f MIOWEST.WK4
MAR 30 '98 01:00PM EHLERS & ASSOCIATES P.3/3
0:3130/98 Mon~C<lllo
NTICEI.LO, MINNESOTA
. TAXINeD NT CASH FLOW
'Base Project c';piur~ Semi-Annual : Adiiiin. Semi-Annuai"" .. 50% Local YSlIIri
PERIOD BEGINNING Tax Tax Tax Gross Tall" 8f Net Tax of Match.' Of PERIOD ENDING
Vrs. Mth. Yr. Capacity _ 9!e!cily Capacity J~ramanl 0.00% Increment Increment 10.00% lncremenl Yr$. Mth. Yr.
0.0 ci2~OI 1998 2,025 2,025 0 0 '0"'-'- 0 '--'0' 0 0.0 0-:-5-08- , 1998
0.5 08.01 1998 0 0 0 0 0 0.0 1.0 02-01 1999
1.0 02-01 1999 2.025 2.025 0 0 0 0 0 0 0.0 1.5 08-01 199s!
1.5 08-01 1999 0 0 0 0 0 0.0 2.0 02-01 2000
2.0 02-01 2000 2,025 6S,050 66,025 3&.355 (3,895) ~.O58 17,530 3.895 0.5 2.5 08.01 2000
2.5 OSo01 2000 38,955 (3,895) 3S,05~ 17.530 3,895 1.0 3.0 02-01 2001
3.0 02-01 2001 2.025 68,050 8M25 38,955 (3.895) 35,059 17.530 S,SQS 1.5 3.5 08-01 2001
3.5 08-01 2001 38,955 (3.895) 35,059 17.530 3,8SS 2.0 4.0 02-01 2002
4.0 02-01 2002 2.025 68,050 66.025 38,m (3.895) 35.059 17.530 3.8" 2.5 4.5 08-01 2002
4.5 08-01 2002 38.955 (3,895) 35.059 17.530 3,895 3.0 5.0 02-01 2003
5.0 02-01 2003 2,025 88.050 66,025 38.955 (3,895) 35,059 17,530 3.895 3.5 5.5 08-01 2003
$.S 08.01 2003 38,955 (Ue5) 35,0511 17,530 3,896 4.0 6.0 02-01 2004
15.0 02-01 2004 2.025 68,050 118.025 sa,lISS (U~) 35,059 17,630 3,8Q6 4.6 8.5 08-01 2004
6.5 08-01 2004 38,955 (3.895) 35,059 17,530 3,895 5.0 7.0 02-01 2005
7.0 02-01 2005 2.025 68.050 66.025 38,955 (3,aDS) 36,059 17,530 3,8~ 5.5 7.5 08-01 200S
7.5 08-(11 2005 38,955 (3,895) 35,059 17,530 3,895 8.0 8.0 02-01 2006
a.o 02-01 2006 2,025 158.050 66.025 38,955 (3.695) 35.059 17,530 3,895 8.5 a.5 08-01 2008
8.5 08-01 2006 38,~5 (3,896) 35.059 17,530 3,895 7.0 9.0 02-01 2007
9.0 02-01 2007 2,025 88,050 eQ,025 38.955 (3,895) 35.059 11,530 3.895 7.5 g,$ 08-01 2007
9.5 08-01 2001 38,955 (S,S9S) 35,059 17,530 3,895 8.0 10.0 02-01 2008
10.0 02-01 200& 2.025 68,0$0 86,025 38.956 (3,895) 3S.059 17.530 3.695 8,5 10.5 08-01 2008
10.5 08-~1~ 2008 ... sS,ass 3895 3$ 059 17,530 3,995 9.0 11.0 o~-gt 2009
Totllii . ..?O ,1 6 70,119 631, 315.533 70:1Y9
'::~reSenl Values 8e 43.440 390,957 185\47' r" .--.-
-.. ,"--
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Ehl.~ and Aaaoclales. Inc.
PallO 2 MIl)WIiST,WK4
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MONTICELLO
.
Rl
CITY OF MONTICELLO
250 East Broadway
P.O. Box 1147
Monticello, Minnesota 55362
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:Q:ent by: ALLIED COMPANIES,LLC 612 428 8395 04/01/98 9:43AM
::: .,,,, """'~ ""'; "'r ~ 6i2~933:S629'KIE ,LLC; ., MAR 30' 98
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Job 230
Page 1/1
17:18 No.022 P.Ot
'....".",MI. DW' EST
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March 3D, 1998
TO:
Paul EdeJ'er
FROM:
Steve Krenz
RE:
Monticello Employment Oppo nitic5
As you know, we are talking about a project hat we would occupy in twO phases.
Phase .
Phase 2
30.000 sq. fl,
Add'130,OOO . ft.
22 New Hires
Add" 15 New Lines
.
Our average starting PlY i$ between $8.00 - 12.00 per bour. We after an employer paid
fringe benefit program including:
Hospitalization
Dental
Short Tenn Disability
Life Insurance
Matching 40 1 K Plan
SK:cl
.
\~ -
I.ll".' Y.1'cl f'I< ,'I I \I\'rj~";r.':', '.1, '1."',, ',',<1' L'" ,-,1/ ')J., _",,".1 If." 1,1..' ~i :-""~'.'
.
.
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HRA AGENDA
APRIL 1, 1998
5.
A. Reference and Background:
Mike Cyr, Front Porch, requests TIF assist ce for the development oftownhome units in
the area of Elm, Vine, and 5th Street. The equest is for the HRA to purchase the home
located at the comer of Vine and 5th Street and sell it to Front Porch. Mr. Cyr estimated
an HRA purchase price of $80,000 and Fro t Porch would acquire the property from the
HRA for approximately $22,000 and move r demolition the building. The home is
located on Lot 6, Block 8 (1998 EMV oft d and building $75,000). Lots 7,8,9, and 10
are raw land. It is proposed that 5th Street be vacated. Front Porch plans to acquire the
BN railroad right of way.
If the HRA elects not to authorize TIF assi tance, Front Porch would develop seven units
on Lots 7,8,9, and 10.
Mike Cyr will be present at the HRA meeti g for additional updates. Enclosed is a copy
of the proposed project and map ofthe are as submitted by Front Porch. The Assessor's
EMV per unit is $115,000.
Because the house located on Lot 6 does n t meet the findings for blight and the proposed
development area consists largely of raw I d, the project does not qualify for a
redevelopment district. Therefore, the req est for establishment of a housing district. In a
Housing District a facility is intended for 0 cupancy in part by persons or families oftow
and moderate income. With units that are roposed as owner-occupied, at least 95% of
the units must be initially purchased by per ons with income that is less than or equal to
the income requirements for qualified mort age revenue bonds under federal law.
Enclosed is a copy of the income requirem nts. Wright County is considered in the
Mpls/St. Paul MSA and the income level is $60,800 (annual gross income) for 2 or less
persons and 115% if 3 or more persons.
Based on the projected assessor's EMV pe unit, Ehler's ran the TIF cashtlow assuming a
7.5% interest rate over 15 years for both 9 units and 13 units. The developer is most
interested in the least number of units appl ing to the income restrictions. If the HRA
agrees to the use of TIF, it is Mark Ruff's uggestion for sake of tlexibility to include all
the units in the district allowing non-quali ing parcels to fallout.
TIF check list:
a) Does project comply with Local T Policies?
b) Does the project meet the ''but for' test? Request a Project Proforma for an
indication of the rate of return to t e developers.
1
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.
.
HRA AGENDA
APRIL 1, 1998
c) Does the project increase the tax bas ?
d) Is the use of TIF for this project setti g a precedence? In development of most
housing projects, the developer is res onsible for development of infrastructure.
Given the qualifying income levels fo owner-occupied, how will you handle the
next developer? Or does the project meet the housing goals ofthe HRA to assist
with housing developments for mode ate or low income families?
e) What does it take to make the projec work? What is the projected tax increment
NPV? Level of tax increment financ assistance?
f) How is local contribution being mad ?
g) Is the Pre-TIF Agreement signed an $5,000 received?
h) The HRA has no liability for relocati n costs or unforeseen environmental cleanup
costs?
i) Do the HRA want an appraisal ofth property? The lIRA will need to hold a
public hearing on the sale of the parc 1.
Enclosed is a copy of the projected TIF Cas flow from Ehlers and a description of the
project from the developer.
B. Alternative Action:
1.
A motion to authorize establishment ofTIF District No. 1-23 or 1-24 a Housing
District for Front Porch.
2. A motion to deny authorization to e tablish TIF District No. 1-23 or No. 1-24.
3. A motion to table action.
C. Recommendation:
The establishment ofthis district becomes ore of a local policy question. Although the
assistance is for purchase of the home, doe the project meet the local housing goal of
providing housing for moderate to low inco e families. Certainly the project increases the
tax base. It is the suggestion of the HRA ttorney that the BRA request a proforma from
the developer when a request for public dol ars. Other housing projects such as River Mills
and Prairie West submitted proformas. Th HRA can limit the life of the district not to
exceed ten years or the developer guarante an annual amount of tax increment. The
BRA would up-front the cost of purchase nd repay itself through a note.
2
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HRA AGENDA
APRIL 1, 1998
D. Supporting Data:
Information from Mike Cyr and map. TIF Cashflow and income levels.
3
30 March 1998
Ollie Koropchak
Housing & Redevelopment Authority
City of Monticello
250 East Broadway
Monticello, MN 55362
Ms. Koropchak,
Front Porch Associates, Ltd.
261 East Broadway - PO Box 999
Monticello, Minnesota 55362
Since submitting our proposal for development to th Planning Commission and also to your
attention on 10 March, we have had a different seen rio develop than the one described. You and
I have had several conversations regarding the new scenario. This memo is to summarize our
conversations and to explain our position for reques; ing HRA involvement in this project.
Our initial development proposal called for construe ion of 7 townhome dwelling units, facing 5th
Street adjacent to Elm Street just south of the Burlin ton Northern railroad tracks. As we
investigated the costs of providing city services to t e property it became apparent that the cost of
doing so was going to be much higher than anticipa ed. The reason for the high cost is that no
.ervices had ever been installed in 5th Street to serv the lots where the development is proposed.
After several discussions with city staff regarding th services issue, Jeff O'Neil mentioned that
someone had previously suggested that 5th Street b vacated and the land made available for the
construction of additional dwelling units. We investigated that possibility and found that including
only the 5th Street ground plus the 4 lots in our initia proposal would not allow us to significantly
increase the number of dwelling units. To significa tly increase the number of possible dwelling
units, not only is the 5th Street ground needed but also the railroad property on the north side of 5th
Street and Lot 6 of Block 8 adjacent to the initial 4 I ts. With this additional property the number
of dwelling units can be increased from 7 to 13.
We have already made arrangements to purchase t e railroad property, should all the other
pieces of the puzzle fall together. We are in discus ion with city staff regarding the vacation of 5th
Street. The last piece of the puzzle is the property f Lot 6, Block 8. This parcel currently has a
house and detached garage on it. The house is pr bably vintage 1930's or 40's. The house has
not been modernized in recent years. There is no entral heat. It has the original windows. The
exterior could use siding. The property is for sale.
In order to create the neighborhood of 13 dwelling nits that we envision, it will be necessary for
the HRA to provide some of the funding to purchas the Lot 6 parcel. Based on our preliminary
estimates of the cost of developing the project and ased on our desire to keep the price of the
. dwelling units below $130,000.00, we are able to p y approximately $22,000.00 for the Lot 6
parcel. This means that the HRA will need to fund bout $60,000.00 of the purchase price. In
previous discussions we have learned that it is up t us to negotiate the purchase of the property
before the HRA becomes involved. To that end we have presented an offer to the owners in the
1 of 2
amount of $80,000.00. We have also included a cause asking the owner to waive his right to
relocation costs when they are offered.
. There are other costs associated with the purchas of this parcel. They include demolition of the
house, moving the garage, clearing the site, etc. hese are costs that we have included in our
development estimates. We are proposing only th t the HRA bridge the gap between the price
paid for the property and the amount that we can a ord to add to our costs.
Without the HRA involvement, we will not be able t build the neighborhood of 13 dwelling units.
We believe that utilizing the Lot 6 parcel, in conjun tion with the ground under 5th Street and the
Burlington property, will result in an extremely attra ive redevelopment of the area. This will
serve as an anchor at the west end of the corridor hat will start on the east at the new city hall
and community center area. Once this project is c mpleted, there will likely be more opportunities
for redevelopment on adjacent property, further inc easing property values and the tax base.
Sincerely,
/1tJcltrd 4r--
Michael Cyr, Front Porch Associates, Ltd.
.
.
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MAR 12 '98 03:53PM EHLERS & ASSOCIATES
P.2/4
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MAR 23 '98 03:18PM EHLERS & ASSOCIATES
MCll\lIcellO HAA - A;sunlO$ 13 Unlll MMI Qualifi;a1lonS
P.4/5
SINGLE MIL Y HOUSING
TAX INCREMENT INANCING DISTRICT #-
T.LF. CASH FlOW AsSUMPTIONS
Interest a 8:
Tax Extension Rale:
Inflation Rale:
BASE VAL E IN!''ORMATION
155.()10-008061
155-01 ?-o?I060
Total
Market Value
. . . .75,500
16,000
CTVA UE~ 0 MATION
p
ypo ax Increment Dist et:
Numb.r 01 Unit.:
Class Rates:
Single Family <$ 5k
Single Family >$ Sk
Estimated Market Value TOlal:
Estimated A&S9SSOr'S Market value per Unit
Estimated Tax Capacity:
Es1imaled Taxes:
Estimated Taxes Per Unit:
Estimated Tax Inorement:
Estimated Tax Increment Per Unit:
Anumes 50% complete In 1998 and 50% c plet. in lillS
iN"" anllll8lOClates, Inc.
o 3198
1.??oo%
, .8500%
7.500%
1.18 Pay 98 Estim&te
0.0000%
ax
9.!~
1.397
296
.',~93
Housing
13
1,495,000 Pay 01
115,000
, 9,370 Pay 01
22,857
1.758
20,859
1,605
HSG1SF.WK4, Page 1
.
!/IIel'8 ana AIaOelliles. Inc:.
e
HSG1SF.WK4, P.2
.
.
.
HOUSING AND REDEVEL PMENT AUTHORITY
I
City of Mo
TAX INCREMENT FI
program purpose: The Monticel 0 Housing and Redevelopment
Authority will utilize Tax lncre 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 proj ect sh 11 be measured against these
considerations and the project's v lue shall be determined, based
upon meeting these considerations.
~. 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 corom 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 he 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 utilities and/or park development which
would not otherwise be avail Ie.
8. The proj ect shall be deeme to promote additional desired
"spin-off" development.
9 . The project shall demon trate' n community ,involvement \I
including demonstrated degrees of the various factors:'
a) Local residency of the company"s owners and employees,. or
b) Local residency of t e -,contractors involved in ,the
project, or
c) Membership in local bu organizations, or
d) Other similar factors.
.
.
.
HRA AGENDA
APRIL I, 1998
6.
A. Reference and Background:
In accordance with the HRA Bylaws the ch . r and vice-chair shall be elected at the annual
meeting of the Board of Commissioners fr among the Commissioners of the Authority
and shall hold office for one year or until t ir successors are elected and qualified. The
Secretary- Treasurer shall be appointed at t e annual meeting of the Board of
Commissioners by the Commissioners.
Current elected officers -
Brad Barger, Chair
Steve Andre s, Vice-Chair
Current appointed officers -
The following commissioners volunteered t be considered for office of the HRA:
Bob Murray
Brad Barger
Steve Andrews
In addition, the HRA annually appoints a c mmissioner to serve as the BRA
representative on the following committees
Current appointee
Steve Andrews
Steve Andrews
MCP
Community Center Task Force
Damn Lahr & Steve Andrews Marketing Committee
New committee
?
Small-Group Community
Center Design Committee
Damn Lahr serves on the EDA and is appo nted by the City Council per the Minnesota
Statutes.
I
.
.
.
lIRA AGENDA
APRIL 1, 1998
B. Alternative Action:
First motion
1, A motion to nominate
Chair ofthe lIRA for 1998.
as Vice
as Chair and
Second motion
2. A motion to elect
Chair of the lIRA for 1998.
as Vice
as Chair and
Third motion
3. A motion to appoint
as Secretary ofthe lIRA for 1998.
as Treasurer and
Fourth motion
4. A motion to appoint the following c( mmissioners to:
MCP, Community Center Task Force,
an d Marketing
Committee, and Small Group Community Center
Design Committee.
C. Recommendation:
No recommendation is given.
2
.
.
.
!--
HRA AGENDA
APRIL 1, 1998
7.
A. Reference and Background:
Enclosed is a copy of the 1997 year-end fin ' cial report for the HRA General Fund and
TIF Fund. The reports were prepared by Treasurer Wolfsteller. He will review the
reports with you at the meeting. The 1998 budget included an Industrial Reserve
Fund $150,000, Hoisington $30,000, Schlei $20,000, Hawkins $55,700, and H-Window
$20,000. Additionally, the HRA made a puchase offer to the Carlsons.
Review for discussion.
B. Alternative Actions:
1. A motion to accept the 1997 year-e . d financial report for the HRA General Fund
and TIP Fund.
2. A motion to further review the 1997 year-end financial reports.
c.
Recommendation:
Recommendation is alternative no. 1 and fo arding report to City as an informational
item.
D. Supporting Data:
Financial report.
1
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HRA AGENDA
APRIL 1, 1998
8.
A. Reference and Background:
At the March HRA meeting, Commissioner urray requested a clarification as to certified
real estate value and assessed value. Commi sioner Murray indicated he would abstain
from any action relating to this item. The P vate Redevelopment Contract for TIF
District No. 1-18, a Soils District, is betwee the HRA and Residential Development, Inc.
(RDI). Rick Murray, Commissioner Murra 's son, is President ofRDI. The first
payment ofthe TIF pay-as-you-go is schedu ed to commence August, 1998, as per the
contract.
Enclosed is an excerpt ofthe Contract whic defines the assessor's estimated market value
as land and improvements. Generally, a cert ficate of real estate value which is recorded
at closing certifies the purchase price and pu chase price is generally greater than the
assessor's estimated market value. You wil note per the contract, the single family
homes shall have an EMV of at least $95,00. and the twinhome buildings (2 units) shall
have an EMV of at least $160,000 for Phas I and H.
No action is required unless Commissioner urray has further questions.
B. Supporting Data.
Excerpt of the Contract.
1
I
.
ARTICLE IV
Section 4.1. Construction of Minimum 1m rovements.
rovements
(a) The Redeveloper agrees that it "11 cause construction of the Minimum
Improvements on the Redevelopment Prope ty in accordance with the approved
Construction Plans and at all times prior to the Maturity Date (while Redeveloper
owns the Minimum Improvements) will operat and maintain, preserve and keep the
Minimum Improvements or cause the Mini um Improvements to be maintained,
preserved and kept with the appurtenances and every part and parcel thereof, in
good repair and condition.
(b) The Minimum Improvements shal consist of the following improvements:
Phase 2:
41 single fa 'ly detached homes
24 twinhome buildings (48 units)
26 single fa "ly detached homes
24 twinhome buildings (48 units)
Phase 1:
.
Cumulative
Phases 1 &; 2: 67 single fa 'ly detached homes
48 twinhome buildings (96 units)
(c) The Minimum Improvements fo each Phas~all have ar[issessor1s
estimated market value (including land and improvemen~as follows:
Phase 1: As of Janu ry 2, 1999, single family homes shall
have an aggregate estimated market value of
$4,000,000, and each single family home shall have
an estimate market value of at least $95,000.
Phase 2:
As of Jan ary 2, 1999, twinhomes shall have an
aggregate stimated market value of $4,000,000, and
each twin ome building (2 units) shall have an
estimated arket value of at least 160 ~O~
As of Jan ary 2, 2002, single family homes shall
have an ggregate estimated market value of
$3 ,615 ,000, and each single family home shall have
an estimat d market value of at least tl5 r 000.
As of Jan ary 2, 2002, twinhomes shall have an
aggregate stimated market value of $4,660,000, and
each twin ome building (2 units) shall have an
estimated arket value of at least $160, OO~.
.
Cumulative
Phases 1 &; 2:
As of Janu ry 2, 2002, single family and twin homes
combined hall have an aggregate estimated market
value of $ 6,275,000, and each single family home
SJll78990
MN190-46
9
.
.
.
HRA AGENDA
APRIL 1, 1998
9.
A. Reference and Background:
Within the Work Plan prepared by the H and as presented by Darrin Lahr as the joint
meeting between the HRA and IDC, it was oted under the marketing plan that perhaps as
a way to market Monticello was to invite in ustrial site locators or developers to
Monticello for a golf outing and include a t ur of the city: industrial, housing, and
commercial sites and quality of life sites. T e Chamber of Commerce has plans for a golf
outing on Wednesday, June 10, 1998, for te business community. The golf outing at the
Monticello Country Club is planned as a I: 0 p.m. shot-gun event. It appears to be an
opportune time for the HRA/City to co-spo sor. The City name appears of the marketing
and invitation material, the HRA purchases x amount of tickets for a gratis invitation to
selected site locators and developers. Per. ps the invitation to include a tour of the city
in the a.m. with a gratis lunch prior to the g If outing. I have checked with Mark Ruff and
this appears to be a legal use ofHRA Geneal Fund dollars or marketing dollars.
Please consider your interest of co-sponsor hip with the Chamber, so I can respond to
them at their board meeting in April. Their. nitial response is very positive. They are
targeting for 80 participants.
.
.
.
HRA AGENDA
APRIL 1, 1998
10.
A. Reference and Background:
of
e.
Enclosed is a copy ofTIF Policies (Exhibit ) from the City of Savage including their
fund ability guidelines. In a conversation wi h the Economic Development Director of
Savage who was newly hired, he said they rrently are not using the policies as their
industrial land price is competitive with the eighboring communities and given their
proximity to the metro market. The City 0 . Savage recently acquired industrial land which
includes wetlands and markets the land at $ .50 per sq ft. Compared to Shakopee with
land at $1.90 per sq ft.
Since one of the items on the priority list 0 the city council is the development of TIP
Policies, I submit these policies for review s a discussion item only. Because of the long
agenda, it is suggested to table the discussi ' n for a later date.
1
.
.
.
HRA AGENDA
APRIL 1, 1998
11.
Please review for motion to authorize paym nt of bills. Please note invoice relating to
Green Acres of which the HRA authorized 0% match with Charlie Pfeffer up to $1,500.
1
.
.
.
.'
,---
MC100-01
GENERAL
Monticell' HRA
PO Box 1147
Monticello MN 5362-9245
March 1 ,1998
'\ '\~~~
~~~ '1 J--
-\1Q,~ ~
Hours Amount
2/18/98 MTR Run tax increment numbers for Amoco r development
Total Due This Month:
Total Balance Due:
1.00 105.00
1.00 $105.00
$105.00
PLEASE KEEP WHITE COpy FOR YOUR FILE A 0 REMIT PINK COPY WITH PA YMENT TO:
EHLERS & ASSO IATES, INC.
3060 Centre F'o nte Drive
Roseville, MN 5 113-1105
(612) 697. 500
.
KENNEDY & RAVEN
Chartere
200 South Sixth Stre t, Suite 470
Minneapolis, MNI 55402
(612) 337-9' 00
B l'N"'~ ~--\
March 9, 1'998
.a.c,tl6
'\ '\ \......
y\p..V, ... -
City of Monticello
Ollie Koropchak
City Hall
P.O. Box 1147
Monticello, MN 55362-9245
MN190-00066: Community Center Financing
Invoice # 2 555
Through February 28, 1998
For All Legal Services As Follows:
02/04/98 DJG Review documentation or and attend HRA 4.80 504.00
meeting
02/11/98 DJG Phone call with R Filiel re armory bond election 0.40 42.00
Issues
Total Services: $ 546.00
.
Attorney S ary
Daniel J Greensweig 5.20 @ 105.00/hr 546.00
For All Disbursements As Follows:
02/05/98
02/11/98
Total Disbursements:
$
0.00
0.00
0.00
Photocopies
Fax
Total Services And Disburse ents:
$
546.00
.iJ.f8. u~der pona!ty of iaw
, .. .hl!; :'-.cCQunl, c1cim ur demand
is juSI a;:d I and thai no
of il has a
.
KENNEDY &IGRAVEN
Charter d
200 South Sixth Str et, Suite 470
Minneapolis, M. 55402
(612) 337 300
March 9,1998
Monticello EDA
Ollie Koropchak
PO Box 1147
Monticello, MN 55362-9245
MN325-00003: Lake Tool (TJ Martin) Loan
Invoice # 2192
Through February 28, 1998
For All Disbursements As Follows:
02/12/98
02/24/98
02/24/98
02/24/98
.
I.e. undor p9Ilalty of ,_
lh. ,Ii ac;::ount, claim or demand
is jusl and
olil
Federal Express - deli ry charge
Photocopies
Postage
Secretary of State - U
Total Disbursements:
Open credit application
Subtotal payment received:
Total Services And Disburse ents:
\. I~S'6
~~~ \.
~OA'
~
G'\V\E
~ '- D L-v-
.w. 0\4
$
12.00
12.20
0.87
20.00
45.07
$
10.75
$
34.32
.
.
.
~~~ ('
,,\. "\ r;Y
~~~~.)- \_? ?-
~~
KENNEDY & RAVEN
Chartere
200 South Sixth Stre t, Suite 470
Minneapolis, MN 55402
(612) 337-300
March 9, 998
City of Monticello
Ollie Koropchak
City Hall
P.O. Box 1147
Monticello, MN 55362-9245
MNI90-00067: Mall Redevelopment
'{Y\cJJ.
Invoice # 2 556
Through February 28, 1998
For All Legal Services As Follows:
02/04/98 SJB Phone call with 0 Koro chak re contract
02/06/98 SJB Phone call with Koropc ak re contract; finalize
same; phone call with r porter
02/09198 DJG Research; draft threat 0 condemnation letter
Total Services:
Attorney Su ary
Daniel J Greensweig
Stephen 1. Bubul
0.60 @ 105.00/hr
1.25 @ 134.00/hr
For All Disbursements As Follows:
02/1 0198
02/25198
02/26198
Postage
Fax
Photocopies
Total Disbursements:
Total Services And Disburse ents:
0.25
1.00
0.60
$
33.50
134.00
63.00
230.50
63.00
167.50
7.72
13.50
38.20
$
59.42
$
289.92
KENNEDY & RAVEN
.
Chartere
200 South Sixth Stre t, Suite 470
Minneapolis, MN: 55402
(612) 337.~ 00
March 9, 1998
f\~ft
. .\ ~~~ \\ k~
,~~)> ' ~~~~J)J\J
City of Monticello
Ollie Koropchak
City Hall
P.O. Box 1147
Monticello, MN 55362-9245
MN190-00068: Green Acres Legislation
Invoice # 2 557
Through February 28, 1998
For All Legal Services As Follows:
.
02/05/98 SJB Phone call with 0 Kor pchak re bill; revise same; 1.00 120.00
memo to Olson
02/06/98 SJB Phone call with Choi d Koropchak re bill 1.00 120.00
modifications; review J Michael memo and
amendments
02/10/98 DJG Phone call with J Choi d 0 Koropchak re TIF 1.20 144.00
legislation; review 0 K ropchak letter to Pappas;
draft proposed amend ent to amended legislation
02/16/98 SJB Intraoffice conference . th R Long re bill status 0.30 36.00
02/16/98 RCL Phone calls with S Bub I and J Choi re legislation 0.30 36.00
update and strategy
02/17/98 RCL Monitor green acres Ie islation 2.50 300.00
02/18/98 SJB Phone call with R Lon and J Choi re Senate bill; 2.00 240.00
letter to Senator Hottin er
02/20/98 SJB Review Senate bill; fax to Koropchak; phone call 0.50 60.00
with J Choi
02/24/98 SJB Phone call with Bob Lng, J Choi and 0 0.30 36.00
Koropchak re bill
02/24/98 RCL Meetings with E Olson R Abrams and others 1.50 180.00
02/25/98 SJB Phone call with 0 Kor pchak re bill status; phone 3.50 420.00
call with Senator Steve s office; draft revision;
testify at House Comm ttee Hearing
02/25/98 RCL Meetings with legislat rs; attend and testify at 3.20 384.00
House TIF subcommitt e
02/26/98 SJB Phone call with 0 Kor pchak re proposed bill 0.60 72.00
changes; phone call wi h industrial park owner re
same; phone call with ouse staff re bill revisions
02/26/98 RCL Prepare for House sub ommittee hearing; prepare 1.40 168.00
amendment language
02/27/98 SJB Phone calls with Choi d R Long re revised bill; 0.50 60.00
review same; fax to K ropchak
02/27/98 RCL Meetings with S Mark and D Ozment; attend 1.60 192.00
hearing
Total Services: $ 2,568.00
.
.
.
.
KENNEDY & RAVEN
Chartered I
200 South Sixth Street Suite 470
Minneapolis, MN 5402
City of Monticello
Ollie Koropchak
Page 2
MN190-00068: Green Acres Legislation
Attorney S ary
Daniel J Greensweig
Robert C. Long
Stephen 1. Bubul
For All Disbursements As Follows:
02/27/98
Fax
Total Disbursements:
Total Services And Disbursem nts:
l \sc.}
\\.
y~x-.
1.20 ~ 120.00/hr
10.50 120.00/hr
9.70 120.00/hr
$
$
144.00
1,260.00
1,164.00
20.50
20.50
2,588.50
.
KENNEDY & RAVEN
Chartere
200 South Sixth Stre . t, Suite 470
Minneapolis, MN 55402
(612) 337-9300
'\ r ~- ? ?-
March 9, 1998
,0':).
..J~
~~.J
~~ ~
,.>s-.~>- ,(\t"'\ ( -:-\
';' '\., r;zrJ'1 t:"'
City of Monticello
Ollie Koropchak
City Hall
P.O. Box 1147
Monticello, MN 55362-9245
MNI90-00069: K-Mart Condemnation
Invoice # 2i 558
!~.~
'~,-
Through February 28, 1998
For All Legal Services As Follows:
02/18/98 SJB Conference call re cont act and condemnation 1.00 134.00
questions
02/18/98 SJB Phone call with B Lars n re mall and K - Mart 0.50 67.00
encumbrance
02/23/98 SJB Phone call with 0 Korpchak re KMart 0.25 33.50
condemnation
. 02/24/98 SJB Review Declaration of. eciprocal Easement 3.00 402.00
Agreement; draft condmnation resolution; phone
call with B Larson re s e
02/25/98 CHT Intraoffice conference ith S Bubul re 0.30 41.70
condemntation issues
02/25/98 SJB Phone call with Larson review condemnation 1.75 234.50
resolution with C Tho son; phone call with 0
Koropchak; draft contr ct resolution
02/26/98 SJB Phone call with 0 Kor pchak re HRA approval of 0.20 26.80
condemnation
Total Services: $ 939.50
Attorney S ary
Corrine H. Thomson
Stephen J. Bubul
0.30 @ 139.00/hr
6.70@ 134.00/hr
41.70
897.80
Total Services And Disburse ents:
$
939.50
.
.
.
.
KENNEDY & G
Chartered
200 South Sixth Street,!Sulte 470
Minneapolis, MN 5402
(612) 337-93
\\'(2.0-
0S~
~ \""
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Monticello HRA
City Hall
P.O. Box 1147
Monticello, MN 55362
MN195-00007: Purchase of 225 West River Stree
Invoice # 2 559
Through February 28, 1998
For All Legal Services As Follows:
02/25/98 CHT Phone call with 0 Koro chak; phone call with L 0.40 55.60
Opsal at Stewart Title re exception; phone call with
o Koropchak
Total Services: $ 55.60
Total Services And Disburse .ents:
$
55.60
KENNEDY & RAVEN
.
Chartere
200 South Sixth Str t, Suite 470
Minneapolis, M 55402
(612) 337- 300
.~~
"
h.. '
f
"-~
~.y
CLIENT SUMMAR March 9,1998
Monticello HRA
City Hall
P.O. Box 1147
Monticello, MN 55362
Through February 28, 1998
MNI95-00007: Purchase of225 West River Str et
Services Rendered:
Disbursements:
Balance Due:
.
t
$
$
$
55.60
55.60
0.00
$
55.60
.
.
.
HRA AGENDA
APRIL 1, 1998
12.
c)
d)
r i n of Ex tiv Dir r' Re
Hawkins _ Sheds being removed, titl cleared, closing scheduled for May 1, 1998.
Schlief - Still attempting to clear title. Indicated O'Connor's potential interest to
sale.
Rich and Marian Carlson - their appr 'sal not ready.
Shingobee, Inc. - Proceeding on proj ct, checking on clean site, not ready for
HRA authorization. Perhaps the ne for a special HRA meeting or will be at the
regular May 6, 1998 meeting.
John Sandberg - heard nothing.
Green Acres - Two separate visions n a bill amendment from the House and
Senate went to the Conference Com 'ttee. Attorney Bubul has been requested to
address a letter. House Bill - remov Green Acres restriction. Senate Bill allow
manufacturing and related office/w ehousing and request for previous seven-years
of tax payment for the difference be een industrial and green acres.
100,000 sq ft manufacturing/assemby facility - A company which produces foam
products such as home insulation an package products is looking to construct a
100,000 sq ft facility and desires 15 cres. The company will have outdoor storage
and prefers a Butler building. 35-fo t ceiling heights, 11 docks, and 40 trucks per
day. Mayor Fair, Jeff, Mark Ruff, d I visited the company a couple of weeks
ago. They toured three sites in Mo .ticello: One in the city and two in the
township. The company's preferen e is the city parcel in the township. Jobs
projected are 60 to 100. Wage-lev still forth corning, mostly unskilled labor.
The total project is 4-5 million, 3 m' lion for land and building. Construction fall
on 1998. The company is requestin free land and Industrial Revenue Bonds.
Enclosed are cashflow numbers bas d on a tip-up panel buil4ini or vEilue ?f~27.50
per square foot. Projected annual t es Sl27,500. ~r()jected tax: increment over 9
years is $600,000 NPy. Is the interested in assisting with TIF? Level of
assistance a decision oflater. Mar and I recommend the City's package assume a
tip-up panel building for tax value d longevity. In talking with a representative
from f~~con the pp~t difference is yfY liWe fOf a facility of such size. I'm doing a
cost analysis on the three parcels in luding land and infrastructure costs.
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.
HRA AGENDA
APRIL 1, 1998
13.
A. Reference and Background:
Enclosed is a copy of the Retail Market Eval ation for Newton, Iowa, which was
prepared by McComb Group, Ltd. A repres ntative from McComb spoke to the ER
committee ofthe MCP a few weeks ago and as received favorably. The estimated cost
for preparation of such a market evaluation i $30,000. The MCP is researching the
feasibility of funding the study and has conta ted the Central Minnesota Initiative Fund for
possible funding. The evaluation project cou d be funded in part if the applicant is a C3
non-profit organization. The MCP is a C4 n n-profit organization. It has been suggested
that the EOA or the HRA consider being the pplicant. Approved CMIF funding may be
in the neighborhood of $5,000. The project i understudy by the ER-MCP and plans for
preparation of an RFP and for soliciting cont .butions from other organizations and
businesses is being considered.
The Market Evaluation is submitted to you fo review only and to plant a seed.
E."h;\:.." S.
1
Sent. by: CJTY OF SAVAGE
6126822656j
.
.
'.
03/10/96 9:25j ~ #261jpage 2
e.'(~ ~
TAX INCREME POUCY
While taX increment financing is an important and ful tool in atttactin& and retaining business,
it is essential. that it is used appropriately to accompl sb the City's economic development goals and
objectives. The fundamental principle which m tax increment financing viable is that it is
designed to encourage development which would not otherwise occur. The Savqe Economic
Development Authority is responsible for ensuring that the projec~ would not occur "but tor" the
assistance provided through tax increment financin .
The Savage Economic Development Authority will consider taX increment fmancini in cases that
serve (Q accomplish the City's ts.""8eted goals for ec: nomic development as they may change over
time. These goals include projects that would r t in the creation of new jobs that pay wages
adequate to suppon households, encourage the rete . on and expansion of existing businesses. and
support redevelopment of blighled or under uti!. parcels.
Projects eligible for consideration of tax increment cina assiSWlce include, but are not limited
to, office, offi-ee/seMcelwarehouse, industriall ufacturing. officeJindustriaJ/corporate bead.
quarters, housing and retail when pcrfonncd in con unction with the elimination of blight.
Project costs qualifying for taX increment financing
utilities design, landscape design. architectwaland
site related pcnnits, earthwork/excavation, soils co
storm sewer and water). streets and roads. Stfectslp
and gutter. sidewalks, land acquisition, special asses
fees). soil tests and environmental studies, surveys. p
msurance, demolition COstS and llF application d
The amount of tax increment financing provided to
following:
istance. as defined under the TIF Act, include
. eeringfees directly attributable to site work.
tion. landscaping. utilities (sanitary sewer.
. lot paving. stteetslparking lot lights, curb
ems, legal (a.cquisition, financing and closing
dedication tee, SAC and WAC charges. title
sit or othervvise petm.ittd by state law.
applicant will be based on the analysis of the
A.
Fundability guidelines for tinancial assis e (Attachment II A").
B.
Eligible project costs submitted on the app ication for taX increment financing assistance
(Attachment "B").
C. Amount of increment generated by the proje t as calculated by the City's financial advisor.
Sent. by: CITY OF SAVAGE
6128822656;
03/10/98 9:26; Jerlax #281;page 3
.
.
'.
TAX INCREMENT POLICY
Page 2 of3
The standard guideline for assistance is seventy p
a term determined by the number of points accum
assistance provided will be evaluated on a case by c
in assistance.
ent (70%) of the project's annual increment for
ated in the fundability guideline. The level of
basis and may reflect an increase or decrease
TYPES OF ASSISTANCE:
Tax: increment financing can be provided in two
wherein the Savage Economic Development
predetermined amoWlt for a predetermined num
increment generated from the project and issued to
the applicant. The Savage Economic Developm
applicants applying for "pay as you go" assistance
. erent forms. One form is "pay as you go"
uthority compensates the applicant for a
of years. Annual payments are based on
e applicant after payment of property taxes by
t Authority will give special consideration to
Another form is "up front" payment to the applic t wherein the Savage Economic Development
Authority must issue revenue or general obliS . n bonds. The increment generated from the
applicant's project is then used for the payment of e bonds.
TIu: Savage Economic DevelopmcntAuthority will require a deposit in the amount oftive thousand
dollars (SS~OOO) from the applicant for the Ci 5 consultants to investigate the feasibility of
providing tax increment financing assistance to c applicant. If the Economic Development
Authorit y incurs additional expense beyond the $ ,000. prior to the execution of the developers
agreemen~ the Economic Development Authori will notify the applicant in writing and the
applicant will be required to deposit additional
lithe project is approved and the applicant procee with the project, tho Economic Development
Authority will reimburse the applicant'! deposit to OlCIcnt permissible under the 11F Act. If the
applicant does not proceed. with the project, the nomic Development Authority will reimburse
the applicant for the unused portion of the deposit. .
If the proj eet being proposed is not within an e . . g tax increment financing district and the
creation of a new district is necessary. the appli ant will be requirec:l to make a deposit to the
Economic Development Authority in the amount ften thousand dollars ($10,000). This deposit
will be used for the City's consultants to investiga the feasibility of creating a new district. If the
Economic Development Authority incurs additio expense beyond the $10,000, prior to the
execution of the developers agreement, the Eco omic Development Authority will notify the
applicant in writing and the applicant will be req . d to deposit additional funds.
Sent by: CITY OF SAVAGE
6128822656j
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.
.
TAX INCREMENT POLICY
03/10/98 9:26j Jedix #281jpage 4
Page 3 of3
If a new district is created and the project procc . the Economic Development Authority will
reimburse the applicant's deposit to the extent p . ssible under the TIF Act. If the applicant does
not proceed with the project. the Economic Develo mentAuthority will reimburse the applicant for
the unused ponion of the deposit.
stJRMtTrAL OF APPLICATION FORMS:
Applicants requesting taX increment fUUUlcing assi ce within an existing district or in the creatioo
of a new district. will be required to complete and submit the following:
1.
Requests for taX increment financing assi
2. Fwuiability guidelines for a financial assi
3. Appropriate deposit ($5.000 or $10,000).
OTHER POLICY ISSUES:
A.
Fiscal Disparities:
e application.
Within existing taX increment financing di . cts and any future districts. it will be the City's
general policy to have the taX i.ncremen financing district suppon the fiscal disparity
contribution from within the tax incremen financing district.
B. LOll of Goyerum.at Aid:
Changes to Minnesota Statutes mandate a.
state to the City when new tax increment
tax increment district is fonned, the appli
Loss or reduction in state revenues.
BAS/rjl
GEN-POLC.830
6.1
duction in the LGA/HACA payments from the
eing districts are formed. In the event a new
t will be required to reimburse the City for such
Sent. by: CITY OF SAVAGE
.
.
.
6128822656j
03/10/98 9:27j Jedax #281jPage 5
CITY OF S V AGE
ECONOMIC DEVELOP AUTHORITY
FINANCIAL
Name of A plicant
Sent by: ClTY OF SAVAGE
.
$
s
!
6128822656;
03/10/98 9:27; Jedax #281;Page 6/17
$ TOTAL INVESTMENT
. RATIO
POINT
VALOE PUBLIC
+1 53 TO 51
+2 TO 51
+3 TO $1
+4 TO 51
+5 TO 51
'.
1
Sent by: CITY OF SAVAGE
6128822656j
03/10/98 9:27j Jedax #281jPage 7/17
.
.
POINT
VALUE
+1 > 1 1S
+2 > 16 30
+3 > 31 45
+4 > 46 75
. +S > 7S LUS
CURRENT NUMBER OF EMPLOYEES
ESTIMATED NEW E LOVEES (WITIllN NEXT
2 YEARS)
· EMPLOYEES SHOULD BE CO
EQUIVALENT POSITIONS.
.
2'
Sent by: CITY OF SAVAGE
6128822656;
03/10/98 9:27; Jedax #281;page 8/17
.
POINT
VALUE
0 12,500+
... 1 10,000.. 512,500
+2 7,500.. 510,000
+3 5,000 .. S 7,500
. +4 2,500 .. $ 5,000
+S o .. $ 2.500
TIF/PUBLIC INVESTMENT $
· CURRENT NUMBER OF EMPLO ES
· INVESTIvfENT PER EMPLOYEE
s
.E~LOYEESSHOULDBECO
EQUIVALENT POSITIONS
.
Sent by: CITY OF SAVAGE
6128822656;
03/10/98 9:28; JeHax #281;page 9/17
.
"'TOTAL NO. WEIGHTED
POINf DOLLAR OF DOLLAR.
VALUE EMPLOYEES AMOUNT
0 S 0- 14,999 S 1 0,000 $
+1 $15,000 - 24,999 520,000 S
+2 525,000 - 29.999 $27,500 S
. +-3 530,000 - 44,999 $37.500 S
+4 545.000 - 59,999 $52.000 5
+S 560.000 and over 560,000 S
.TOTAL 5
WEIGHTED AVERAGE "" S
· EMPLOYEES SHOULD BE COMPUTED AS -TIME EQUIVALENT posmONS.
THE TOT AI.. NUMBER ON TInS PAGE SHO 0 EQUAL mE TOTAL ON PAGE 2.
'.
4'
Sent by: CITY OF SAVAGE
6128822656;
03/10/98 9:28; Jedax #281;Page 10/17
.
...
POINT
VALUE
+1
+2
. +3 S 50. O. $ 99,000
+4 S100. 00. $249.000
+5 5250, 00 AND OVER
· PROJECTED TAX REVENUES HOULD BE BASED ON
TIlE EXISTING PROPERTY T SYSTEM AND RATES
PLUS LEGISLATIVEFUnJRE RANGES IF SUBJECT
.
...... .._._.._ ___~.,_'" .,_,..".,_.,._",.___,,~ ,,,__n.,.
Sent by: CITY OF SAVAGE
6128822656;
03/10/98 9:28; Jedix #281;Page 11/17
.
POINT
VALUE
+1 RETAIL
+2 HOUSING
+2 OFFICE
+3 OFFICE/SERVICE (SOISO)
+3 V ALUE ADDED (RETAIL WITH SIGNIFICANT
. SERVICE COMPONENT)
+4 INDUSTRIAL
+ 1 COMPANY/CORPORATE HEADQUARTERS - LOCATION
OF UPPER MANAGE WHERE STRATEGIC MANAGE.
MENTDECISIONS ARE E(ADD 1 POINT TO ABOVE
VALUE)
+ 1 REMOVALORREHAB TATIONOFSUBSTANDARD
STRUCTURES (ADD 1 P INT TO ABOVE VALUE)
TOTAL POINT VALUE
.
/
Sent by: CITY OF SAVAGE
6126622656j
03/10/96 9:29j Jedax #261jpage 12/17
.
POINT
VALUE
+1
Buildin(l Ex rior Above Standard
+2
Expansion 0 Existing Business or Building
+1
+1
+1
.
Bring Existing Building or Prope
+2
. ty with outdoor storage standards
conformity with standards
+2
AdditionalValue Factors
+3
Substanctard il (FilUCompac;tion needed)
Total Point Value
.
Sent by: CITY OF SAVAGE
6128822656j
.
03/10/98 9:29j Jedax #281j?age 13/17
POINT
. VALUE
~ 4.0 RETAIL
- 3.5 OUSE SERVICE
- 3.0 HI TECH
~ 2.0 OFFICE
.
Sent by: CITY OF SAVAGE
6128822656j
03/10/98 9:29j Jedax #281jpage 14/17
.
POINT
VALUE
.2
+S PAY S YOU GO
OR
.
POINT
VALt..JE
.2 ONE TIME PAYMENT
+3 3 AL PAYMENTS
+4 4 UAL PAYMENTS
+S 5
.
I .!
Sent by: CITY OF SAVAGE
6128822656;
03/10/98 9:30; Jedax #281;page 15/17
.
pAGE POINT VALUE
1 PUBLIC VERSUS PRlV A
2
3 PUBLIC INVESTMENT P R
EMPLOYEE
4
5 REAL ESTATElPROPER TAXES
GENERA. TED
6 SIGNIFICANT IMPACT
MULTIPLIER
. 7 SERVICE IMPACT
8 ENHANCEMENT IMP AC
9 FORM OF T.I.F. ASSIST CE
REQUESTED
TOTAL
THE INFORMA nON PROVIDED
TO TIlE BEST OF MY KNOWLEDGE:
IS TRUE AND ACCURATE
.
DATE:
10
!
03/10/98 9:30j Jedax #281jpage 16/17
Sent by: CITY OF SAVAGE
6128822656j
.
~OINT VALUE
. o - 10
11 - 13 3 - OR - REMAINING LIFE
OF TIF DISTRICT,
WHICHEVER IS
LESS
14 - 16 5 ..
17 . 20 7 .. ..
21 AND OVER u ..
.
11
Sent by: CITY OF SAVAGE
6128822656;
03/10/98 9:30; Jedax #281;page 17/17
.
(1)
BUILDING SIZE:
.SQUARE FOOT COST OF PROJECT:
(LAND & BUILDiNG)
.
(2)
PROJECT PERS.F.
COST PER S.F. ATJ.OWANCE
520.00 . $30.00 53.00
530.01 - 540.00 $4.00
540.01 - S50.00 $5.00
OVER S50.01 $6.00
(3)
POINTS PERCENT OF
ACCUMlJLA TED ASSISTANCE
11 - 13 30%
14. 16 50%
17 - 20 70%
21 & OVER 1000.4
(1
S.F. OF BLDG: S
X (2)
S.F. ALLOWANCE S
X (3)
% OF ASSISTANCE: %
EQUALS
AMOUNT OF ASSISTANCE S
.
. USE EITHER TOTAL PROJECT COS S OR ESTIMATED MARKET
VALUE OF PROJECT.
12
--...............,-.-',.,.
e--(~~\o,.t- ~
.
RETAIL MARKET VALVA TION
NEWTON, OWA
Prepare for
Newton Developme t Corporation
.
Prepare by
McComb Gr up, Ltd.
June 1 97
<9 Copyright 1997 Me omb Group, Ltd.
.
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Table 24
.
NEWTON, I W A,
PRIMARY TRADE AREA PURe ING POWER, 1996 TO 2000
(In Thousands 0 Dollars)
Merchandise Category 1996 1998 1999 2000
------------------------------~---------- -------""'---- ------------- ------------- -------------
General Merchandise $ 104,779 $ $ 112,740 $ 116,906 $ 120,497
Department Stores 86,425 92,991 96,428 99,390
Conventional 13,211 14,215 14,740 15,193
Discount 60,828 65,449 67,868 69,953
National Chain 12,386 13,327 13,819 14,244
Other 18,354 19,748 20,478 21,107
Apparel and Accessories 27.107 28,118 29,167 30,244 31.1 73
Furniture & Home Furnishings 30,572 31,712 32,894 34,110 35,158
Other Shopping Goods 20,603 21,371 22,168 22,987 23,693
Total Shopping Goods 183,060 189,886 196,969 204,247 210,522
Eating and Drinking 69,294 74,559 77,314 79,689
. Convenience Goods 191,408 1 205,951 213,561 220,122
Food 151,602 1 163,120 169,148 174,344
Drug 28,601 30,774 31,911 32,891
Hardware 6,618 7,121 7,384 7,611
Liquor 1,959 2,108 2,186 2,253
Florist 2,553 2,747 2,848 2,936
Other Stores
Service Stations 68,805 1,371 74,033 76,769 79,127
Tire, Battery 10,081 0,456 10,846 11,247 11,593
Building Materials 39,808 .1,292 42,832 44,415 45,779
Lumber and Other 33,298 4,539 35,828 37,152 38,293
Paint, Glass 2,485 2,578 2,674 2,772 2,858
Nurseries, Lawn 4,'025 4,175 4,331 4,491 4,629
-------- ---- .-..-- ----------- ------------ -------....-----
Total $ 479,033 $ 4 7,500 $ 514,155 $ 533,279 $ 552,218
Source: McComb Group, Ltd.
-.
Table 26
e
NEWTON, I W A
SECONDARY TRADE AREA PURe ING POWER 1996 TO 2000
(In Thousands of oHars)
Merchandise Category 1996 1997 1998 1999 2000
------------------------------------------- ------------- ---- -------- ------------- ----_..------- -------------
General Merchandise $ 112,083 $ 1 6,611 $ 121,316 $ 126,171 $ 130,437
Department Stores 92,450 6,184 100,065 104,070 107,589
Conventional 14,132 4,703 15,296 15,909 16,447
Discount 65,068 7,697 70,428 73,246 75,724
National Chain 13,249 3,784 14,340 14,914 15,419
Other 19,633 0,427 21,251 22,1 01 22,849
Apparel and Accessories 28,997 0,168 31,385 32,641 33,745
Furniture & Home Furnishings 32,703 4,024 35,397 36,813 38,058
Other Shopping Goods 22,039 2,929 23,854 24,809 25,648
-_...---------- --- -_.....----- ---...--..--..--- ----_..------- -------------
Total Shopping Goods 195,821 211,952 220,434 227,888
Eating and Drinking 74,125 80,230 83,441 86,263
e Convenience Goods
Food 162,170 168,721 175,528 182,553 188,726
Drug 30,595 31,831 33,115 34,440 35,605
Hardware 7,079 7,365 7,663 7,969 8,239
Liquor ,-" 2,095 2,180 2,268 2,3'59 2,438
Florist 2,731 2,841 2,956 3,074 3,178
Other Stores
Service Stations 73,602 76,575 79,664 82,853 85,654
Tire, Battery 10,783 11 ,219 11,672 12,139 12,549
Building Materials 42,583 44,303 46,090 47,935 49,556
Lumber and Other 35,619 37,058 38,553 40,096 41,452
Paint, Glass 2,658 2,765 2,877 , 2,992 3,093
Nurseries, Lawn 4,305 4,479 4,660 4,847 5,011
------------ -- .--------- ------------- -----------....... -------------
Total $ 601,584 $ 25,885 $ 651,138 $ 677,196 $ 700,097
Source: McComb Group, Ltd.
e-
.
NEWTON RET SPACE
BY MERCHANDISE CATEGORY
(In Square eet)
Merchandise Category Downtown Eastside Total
Convenience Goods
Food 23,600 49,850 91,885
Drug 9,250 25,400 34,650
Hard ware 0 4,400 4,400
Convenience Food Stores 3,150 3,000 . 15,400
Other Convenience Goods 400 1,500 1,900
Subtotal 27,68 36,400 84,150 148,235
Shopping Goods
General Merchandise
Department Stores 0 76,100 76,100
Agricultural Supplies 5,200 59,800 85,700
FurniturelHome Furnishings 12,000 62,400 74,400
Other Shopping Goods 80,100 84,675 164,775
. Subtotal 97,300 282,975 400,975
Eating & Drinking
Restaurants 23,4 7 5 17,900 61,825
Fast Food 0 16,725 16,725
Subtotal 20,4 0 23,475 34,625 78,550
Selvices 0 28,438 2,700 31,138
Selvice Stations 1,500 0 3,509
Tire, Bartery, etc. 15,300 22,300 37,600.
Total. 202,413 426,750 699,998'
Source: McComb Group, Ltd.
.
. Table 1
NEWTON RETAIL SALES MARKET SHARE 1996
(In Thousands 0 Dollars)
Trade Area Purchasing Market
Category Sales Per ent Dollars Power Share
Convenience Goods
Food Stores $35,810 $34,020 $151,602 22.4%
Drug Stores 9,670 9,186 28,601 32.1
Shopping Goods
General Merchandise 22,500 5 16,875 104,779 16.1
Apparel & Accessories 3,060 5 2,295 27,107 8.5
Furniture & Home Furnishings 7,000 5 5,250 30,572 17.2
Other N/A NA N/A 20,603 N/A
Eating & Drinking 15,200 5 11,400 69,294 16.45
Building Materials 6,970 5 6,621 39,808 16.6
Gasoline Service Stations 17,720 5 11,518 68,805 16.7
Other Stores 12.755 5 9.566 N/A N/A
Total $130,685 $106,731 $541,171
. NI A: Not available.
Source: US Department of Commerce; Iowa Depart ent of Revenue & Finance, Iowa State
University, University Extension and McCo b Group, Ltd.
.
.
Table 1
NEWTON SER VIe SALES, 1992
PRIMARY TRADE ARE MARKET SHARE
(In Thousands fDollars)
Category
Personal Services
Miscellaneous Repair
Amusement, Recreation, etc.
Health Services
Total
Source: US Census of Services
.
.
Sales
Purchasing
Power
$2,58
41
97
11 67
$15,64
$12,273
1,919
5,242
56.332
$75,776
Market
Share
21.1%
21.7
17.2
20.7
20.7%
.
POPULATION AND OUSEHOLDS
NEWTON PRIMARY AND SECOND Y TRADE AREA AND lOW A
1970,1980 AND 1990 CENSUS; 1996 2001 AND 2006 ESTIMATED
Rate of Rate of
Year Population Change Households Change
Primary Trade Area
1970 85,950 NA% 27,385 NA%
1980 90,868 0.56 32,770 1.81
1990 88,931 (0.22) 33,464 0.21
1996 Estimated 91,020 0.39 35, 1 00 0.80
2001 Estimated 94,500 0.75 36,527 0.80
2006 Estimated 98,450 0.82 38,011 0.80
Secondary Trade Area
1970 86,642 NA% 27,952 NA%
1980 89,517 0.33 33,126 1.71
1990 88,206 (0.14) 34,553 0.42
1996 Estimated 91,839 0.67 37,000 1.11
. 2001 Estimated 96,494 0.99 39,080 1.10
2006 Estimated 101,732 1.06 41,277 1.10
Iowa
1970 2,802,217 NA% 891,578 NA%
1980 2,888,734 .30 1,047,636 1.62
1990 2,776,755 (.39) 1,064,325 .16
1996 Estimated 2,853,927 .46 1,121,490 .88
2001 Estimated 2,897,041 .30 1,142,119 .37
2006 Estimated 2,937,939 .28 1,158,382 .28
NA: Not Available,
0: Decrease
. .
Source: U.S. Census and Urban Decision Systems, Inc.
.
.
NEWTON, I W A
PRIMARY TRADE AREA ES TED 1999 RETAIL SALES
(In Thousands 0 Dollars)
Resident Estimated Trade
urchasing Market Area
Merchandise Category Power Share Sales
Shopping Goods
General Merchandise 116,906 32.0% $ 37,410
Apparel and Accessories 30,244 20.0% 6,049
Furniture and Home Furnishings 34,110 22.5% 7,675
Other Shopping Goods 22,987 33.0% 7,586
Subtotal 204,247 28.8% 58,719
Eating & Drinking 77,314 20.0% $ 15,463
. Convenience Goods
Food 169,148 26.0% $ 43,978
Drug Stores 31,911 33.0% 10,531
Hardware 7,384 25.0% 1,846
Liquor Stores 2,186 35.0% 765
Florists 2,848 25.0% 712
Subtotal 213,477 27.1% 57,832
Other Stores
Service Stations 76,769 17.5% $ 13,435
Tire, Battery 11 ,247 17.5% 1,968
Building Materials 44,415 17.0% 7,551
Total 627,469 29.1% $ 154,968
Source: McComb Group, Ltd.
.
Table 29
l'<EWTON, 10\ A
PRIMARY AND SECONDARY TRADE AREA STlMATED 1999 RETAil. SALES
. (In Thousands of 11m)
Primary Trade Area Trade Area
Resident Estimated Trade Trade Combined Estimated
PW'Chasing Market Area Area Trade Area Inflow Total
Merchandise Category Power Share Sales Sales Sales Shoppers Sales
SHOPPING GOODS
General Merchandise
Department Stores
Conventional $ 14,740 35.0010 S 5,159 S IS 909 10.0% S 1,590.9 $ 6,749.9 S 750.0 $ 7,499.9
OiscoWlt 67,868 30.0% 20,360 73 246 10.0% 7,324.6 27,685.0 3,076.1 30,761.1
National Chain 13,819 35.0% 4,837 14 914 10.0% 1,491.4 6,328.1 703.1 7,031.2
Other 20,479 35.0% 7,168 2 101 10.0% 2,210.1 9,377.8 1,0420 10,419.7
Subtotal 116,906 37,524 12 ,170 12,617.0 50,140.7 5,571.2 55,711.9
Apparel and Accessories
Mens and Boys 3,935 20.0% 787 ,247 10.0% 424.7 1,211.7 134.6 1,346.3
Womens Clothing 11,610 20.0% 2,322 I 530 10.0% 1,253.0 3,575.0 397.2 3,972.2
Womens Accessories 769 20.0% 154 830 10.0% 83.0 236.8 26.3 263.1
Family Clothing 7,322 20.0% 1,464 ,902 10.0% 790.2 2,254.6 250.5 2,505.1
Childrenllnfant 509 20.0% 102 549 10.0% 54.9 156.7 17.4 174.1
Misc. Apparel 891 20.0% 178 962 10.0% 96.2 274.4 30.5 304.9
Shoes - Men 244 20.0% 49 263 10.0% 26.3 75.1 8.3 83.4
Shoes. Womens 1,061 20.0% 212 ,145 10.0% 114.5 326.7 36.3 363.0
Shoes - Children 49 20.0% 10 53 10.0% 53 15.l 1.7 16.8
Shoes - Family 3,855 20.0% 771 ,161 10.0% 416.1 1,187.1 131.9 1,319.0
30,245 6,049 3 642 3,264.2 9,313.2 1,034.8 10,348.0
Furniture & Home Furnishings
Furniture 12,769 20.0% 2,554 1 ,781 15.0% 2,067.2 4,621.0 513.4 5,134.4
Floor Coverings 4,667 25.0% 1,167 ,037 10.0% 503.7 1,670.5 185.6 1,856.1
Epery & Upholstery 272 25.0% 68 294 10.0% 29.4 97.4 10.8 108.2
. . Home Fwnishings 1,603 25.0% 401 ,731 10.0% 173.1 573.9 63.8 637.6
Appliances 3,927 30.0% 1,178 ,239 15.0% 635.9 1,814.0 201.6 2,015.5
Radio, TV & Eleo. 7,050 20.0% 1;410 ,609 10.0% 760.9 2,170.9 241.2 2,4121
Computer & Software 880 20.0% 176 950 10.0% 95.0 271.0 30.1 301.1
Records & Tapes 1,642 25.0% 411 1,772 10.0% 177.2 587.7 65.3 653.0
Musioal Instruments - 1,298 25.0% 325 1,401 10.0% 140.1 464:6' 51.6 516.2
Subtotal 34,108 7,688 6,814 4,582.4 12,270.8 1,363.4 13,634.2
Other Shopping GOods
Sporting Goods - 4,474 35.0% 1,566 4,829 15.0% 724.4 2,290.3 254.5 2,544.7
Book Stores 2,900 35.0010 1,015 3,130 15.0% 469.5 1,484.5 164.9 1,649.4
stationery Stores 320 25.0% 80 346 10.0% 34.6 114.6 127 127.3
Jowclry Sloti:s 5,440 35.0% 1,-904 5,871 10.0% 587.1 2,491.1 276.8 2,767.9
Hobby, Toy & Game 2,550 30.0010 765 2,752 15.0% 4128 1,177.8 130.9 1,308.7
Camera & Photogiaphio 553 35.0% 194 597 15.0% 89.6 283.1 31.5 314.6
Gift, Novelty 4,118 35.0010 1,441 4,445 15.0% 666.8 2,108.1 234.2 2,3423
~ &; Leather- 187 . 0.0010 0 202 0.0010 0.0 0.0 0.0 0.0
Sewing, NoCdlewotk '1,716 35.0% 601 1,851 15.0% 277.7 878.3 97.6 975.8
Pet Stores 728 0.0% 0 785 0.0% 0.0 0.0 0.0 0.0
Subtotal 22,986 7,565 4,808 3,2623 10,827.7 1,203.1 12,030.7
CONVENIENCE GOODS
Food
Grocery Stores
Supetmarkcts 146,752 Z7.0% 39,623 158,382 _ 5.0010 7,919.1 47,5421 5,282.5 52,824.6
Coovcnienoe Food 3,-958 20.0% m 4,271 5.0% 213.6 1,005.2 111.7 1,116.8
Coovcnienoe Food/Gas 15,733 20.0% 3,147 16,-979 5.0% 849.0 3,995.6 444.0 4,439.5
Retail Bakerice 1,473 20.0% 295 1,590 5.0010 79.5 374.1 41.6 415.7
Candy, Nut, Coni. . 306 25.0% 77 330 5.0% 16.5 93.0 10.3 103.3
Other Food Stores m 20.0% 185 1,000 5.0% 50.0 235.4 26.2 261.6
Subtotal 169,149 44,118 82,552 9,127.6 53,245.3 5,916.1 59,161.5
.50=: ~Group,Ud
Table 30
NEwrON,1 WA
PRIMAR. Y TRADE AREA S RTABLE STORES. 1999
(In Thousands of 00111/$ and Feet of GLA)
. Median
Sales Supportable Store Size
Mcrchandisc Category Potential Square Fcct (Sq. Fl)
SHOPPING GOODS
General MerclI8ndisc
Department Stores
Conventional $ 1,499.9 $ 115 42,851 135.000
Discount 30,161.\ 250 123.044 NA
National Chain 1,031.2 115 40.118 135,000
Other 10.419.1 ISO 69,465 NA
Subtotal $ 55.711.9 275.544
Apparel and Aoocssorics
Mens and Bays 1,346.3 250 5,385 2,800
Womcns Clothing 3,912.2 225 17,654 2,800
Womens Accessories 263.\ 32S 810 800
Family Clolhins 2,505.1 240 10.438 3,800
Children/Infant 174.1 I7S 995 1,000
Misc. Apparel 304.9 230 1,326 2,000
Shoes - Men 83.4 250 334 1.200
Shoes - Womens 363.0 275 1,320 1.400
Shoes - Children 16.8 185 91 1.000
Shoes - Family \,319.0 200 6,595 3,000
Subtotal 10,348.0 44.941
Furniture &. Home F~
Furniture 5,134.4 125 41,075 NA
Floor Covering< 1,856.1 100 18,561 NA
Drapery &. Upholstery 108.2 250 433 2,300
Misc. Home Furnishings 631.6 200 3,188 2,700
Appliances 2,015:5 225 8,958 3,000
Radio, TV &. Elcc. 2,412.1 250 9,648 2,400
Computer &. Software 30Ll 300 1.004 1,500
Records &. Tapes 653.0 265 2,464 2,800
. Musical1nslrUmcnts 5162 175 2,950 2,500
Subtotal 13,634.2 88.281
Other Shopping Goods
Sponing Goods 2,544.7 200 12,124 4,800
Book Stores 1,649.4 280 5.891 3.200
Stationery Stores 127.3 165 m 1,500
Jcwelry Stores 2,167.9 400 6.920 1,200
Hobby, Toy &. Game 1,308.7 175 7,478 2,500.
Camera &. Photographic 314.6 300 1.049 1,100
Gift, Novelty 2,342.3 175 13,384 2,500
Sewing. Needlework: 975.8 100 9,758 3,800
Subtotal 12,030.7 57,975
CONVENIENCE GOODS
Food
Grocery Stores
Supermarkets 52,824.6 400 132,062 42,000
Convenience Food 1,116.8 250 4,467 1,900
Convenienne Food/Gas 4,439:5 NA NA NA
Retail Bakeries .. , 415.7 22S 1.847 1.100
~ -,
Candy, Nut, Con( 103.3 250 413 100
Other Food Stores 26\.6 250 1,046 1,200
Subtotal 59,161.5 139.836
Dtug Stores 15,521.4 280 55,455 15,000
Liquor Stores 1,112.2 215 4,044 2,900
Florists 96\.9 ISO 6,413 1,000
Hardwarc 2,05 LI 125 16.409 9,500
Eating &. Drinking 23,099.9 225 102,666 NA
. Total $ 193,638.8 791.570
NA Not applicable
Source; MoComb Group, Lid.
48
.
NEWTO ,IOWA
PRIMARY TRADE AREA EST lED 1999 SERVICE SALES
(InThousan of Dollars)
Estimated Estimated
Market Total
_______________M~~?~~~~_~~!~~~~______..______ Share Sales
......- --------..--- ------.....---..-- ---.......-......._-------
Personal Services
Coin-operated laundries and drycleaning $ 562 22% $ 124
Drycleaning plants, except rug cleaning 1,588 22% 349
Carpet and upholstery cleaning 617 22% 136
Photographic studios, portrait 1,891 22% 416
Beauty shops 5,340 22% 1,175
Barber shops 164 22% 36
Shoe repair shops and shoeslllne parlors 122 22% 27
T ax return preparation services 515 22% 113
Massage parlors, tanning salons, saunas 165 22% 36
Diet and weight reducing services 408 22% 90
Formal wear rental 273 22% 60
Subtotal II ,646 2,562
Repair Services
Radio and television repair shops 657 22% 144
Watch, clock and jewelry repair 65 22% 14
Reupholstery and furniture repair 322 22% 71
. F arm machinery and equipment repair 1,348 22% 297
Lawnmower/Other small gas engine repair 230 22% 51
Subtotal 2,621 577
Amusement & Recreation
Motion picture theaters 2,297 50% 1,149
Video tape rental 1,610 25% 403
Bowling centers 1,938 25% 485
Dance studios, schools and halls 328 25% 82
Physical fitness facilities 700 25% 175
Public golf courses 859 25% 215
Subtotal 7,732 2,507
Health Services
Doctors of medicine offices/clinics 50,903 22% 11,199
Dentists offices/clinics 13,945 22% 3,068
Doctors of osteopathy offices/clinics 3,373 22% 742
Chiropractors offices/clinics 2,968 22% 653
Optometrists offices/clinics 3,440 22% 757
Podiatrists offices/clinics 653 22% 144
Subtotal 75,282 16,562
Legal service 21,962 22% 4,832
Child daycare services 1,491 22% 328
Total $ 120,734 $ 27,368
. Source: McComb Group, Ltd.
51
Table 32
NEWTON,I( WA
. PRIMARY TRADE AREA SUPPORTA BLE SERVICE STORES, 1999
(In Thousands of Dollars)
Average
S les Sales Per Supportable
Merchandise Category Pot ntial Establisrunent Stores
Personal Services
Coin-operated laundries and drycleaning $ 124 $ 130 1.0
Drycleaning plants, except rug cleaning 349 128 2.7
Carpet and upholstery cleaning 136 185 0.7
Photographic studios, portrait 416 280 1.5
Beauty shops Ll75 125 9.4
Barber shops 36 100 0.4
Shoe repair shops and shoeshine parlors . 27 145 0.2
Tax return preparation services 113 160 0.7
Massage parlors, tanning salons, saunas 36 100 0.4
Diet and weight reducing services 90 260 0.3
Fomlal wear rental 60 410 0.1
Subtotal 2,562 2,023
Repair Services
Radio and television repair shops 144 340 0.4
Watch, clock and jewelry repair 14 185 0.1
Reupholstery and ftuniture repair 71 120 0.6
Farm machinery and equipment repair 297 300 1.0
. LawlUllower/Other small gas engine repair 51 160 0.3
_.- ~-~-_.~
Subtotal 577 1,105
Amusement & Recreation
Motion picture theaters 1.149 550 2.1
Video tape rental 403 210 1.9
Bowling centers 485 310 1.6
Dance studios, schools and halls 82 125 0.7
Physical fitness facilities 175 270 0.6
Public golf courses 215 385 0.6
Subtotal 2,507 1,850
Health services
Doctors of medicine offices/clinics 11,199 1070 10.5
Dentists offices/clinics 3,068 345 8.9
Doctors of osteopathy offices/clinics 742 500 1.5
Chiropractors offices/clinics 653 190 3.4
Optometrists offices/clinics 757 360 2.1
Podiatrists offices/clinics 144 245 0.6
Subtotal 16,562 2,710
Legal service 4.832 430 11.2
Child daycare services 328 105 3.1
Total $ 27,368 $ 8,223
. Source: McComb Group, Ltd.
52