EDSR INFORMATION 01-12-1998In} o a 1998
INFORMATION
PUBLIC RESOURCE
•
GROUPINC.
Business Development&Finance Specialists
December 31, 1997
Via Fax: (612) 441-7425
Paul Steinman
City of Elk River
13065 OronoParkway
Elk River, MN 55330
Dear Paul:
Please mark your calendar for the next Community Venture Network meeting
which be held on Thursday, January 22, 1998 at The Clubhouse at Edinburgh
•
located at 8700 Edinbrook Crossing, Brooklyn Park, MN, phone (612) 424-9444.
The meeting will begin at 10:00 a.m. promptly.
I will be providing a brief description of the companies prior to the meeting. If you
should have any questions or comments, please feel free to contact me at (800) 642-
6258.
Sincerely,
PUBLIC RESOURCE GROUP,.INC.
Dennis.J. Welch
Principal
4205 Lancaster Lane North* Suite 1100 • Minneapolis,Minnesota 55441 • (612)550-7979 • (612) 550-9221 Fax
it(612)441-7174 11/5/97 012:34 PM D2/2
INFORPitigi
SolarAttic, Inc.
• 15548 95th Circle NE,Elk River,MN 55330 24 Hours/day (612)441-3440 Fax(612)441-71'
Internet: SolarAtticeaol.c.
For Immediate Release: Contact:
January 5, 1998 Jim Stanley(612)441-3440
James Kantorowicz (612) 441-3440
SolarAttic Announces Orlando Distributor
Elk River, Minn. (January 5, 1998)-- SolarAttic, Inc. announced today that it has signed a distribution
agreement for the Orlando, Florida area covering the distribution and sale of the Company's PCS1
swimming pool heater which uses solar-derived attic heat energy. SolarAttic's Pool Heater provides
an answer to the number one solar sales objection which is solar panels. People do not like solar
panels and many communities object and have restrictions. The PCS1 is a heat exchanger which is
located inside the attic and is out of site. It uses the roof as the solar heat collector.
The new distributor is Mark Overmyer, a local businessman, who is based in Longwood, Florida. He
lbis in the process of establishing a new company to handle the PCS1 sales. The new company will not
be directly affiliated with, nor is it a subsidiary of SolarAttic. Mr. Overmyer has been given an
exclusive territory within Florida that covers the following counties: Lake, Orange, Osceola and
Seminole. Additional product and sales information may be found at SolarAttic's Internet site.
Further information in Orlando can he obtained by contacting Mark Overmyer at(40'7)788-2120.
Ed Palmer, SolarAttic's president, said: "We're excited about this new distribution and sales operation
that is taking off in Florida. Orlando, itself, is a very large market for swimming pool heaters and
Mark has an excellent business background with years of experience. We expect him to do quite well
with SolarAttic's pool heater." Additional information can be obtained on the Internet at
http://www.solarattic.com or by contacting Jim Stanley or James Kantorowicz at(612)441-3440.
4444
•
DEC 18 'q7 019:48 EAPHA GUE r S TEFFENGER P.2
ROB RT A,CUZYCHARLES M.SEYKORA
BERNARDt STEFFEN it a, f''6.0 II'h M 4i wrrw i1 i l.I'Y li DANIEL D.GANTER,JR.,
. RICHARD A.MERRILL BEVERLY K.IX)DGE
' DARItELL A,jENSEN GREGO V.HERRICK.....
JEFFREY S.JOHNSON JAMES D.HOERT
w RUSSELL H.CROW DER JOAN M.QUADE
Jc>NPERI CKSON Barna Guzy & Steffen, Ltd. errM.LEPAK
LAWRENCE R.JOHNSON 1ELIZABETH 4.SCHADINC
D LOSS! ATTORNEYS.:T LAW WILLIAM P.HUEFNER
P.MALONE ,. BRADLEY
A.A.
(LE SC1
ER
MI EL R HURLEY 400�1 or>htcvan Financial Plaza SUSAN
VIROIL C.HERRICiCMALCOLM P.TERRY
HERMAN L.TALLE 200 Coon Rapids Boulevard ARISTI R.RILEY
Minneapolis, MN 55433-5894
ROBERT C.H'YNES
(612) 780.-8500 FAX (612) 780.1777 1935.1993
Writer's Direct Line: (612) 783-5119
December 17, 1997
1.
Mr. Tim Keefe
MAS Technologies, Inc.
1408 North Star Drive
Zumbrota, MN 55992
RE: Anoka/Sherburne County Capital Fund
Our File No. 43020-001
Dear Mr, Keefe: "`
• • Please be advised that this law firm represents the Anoka/Sherburne County Capital Fund.
Roger A. Jensen has referred to us the matter of your defaults under the Convertible Debenture .
dated April 5, 1997.
MAS Technologies, Inc. has defaulted under Section 5(C) of the debenture by failing to relocate
its administrative and marketing offices to Sherburne County, Minnesota.
As a result of your default, your payment obligation became immediately due and'payable and.
you were required to issue to Anoka/Sherburne County Capital Fund Warrants for the purchase
of$25,000,00 worth of common stock at the price set forth in the debenture.
Further,pursuant to Section 5(D)(ii), your failure to repay a principal and interest within 30 days
of becoming due requires MAS Technologies, Inc. to increase the value of the Warrants to
$50,000.00 with the loan remaining due and payable with interest accruing until paid in full.
Demand is hereby made for you to honor your obligations under the Convertible Debenture by
issuing to the Anoka/Sherburne County Capital Fund Warrants to purchase$50,000.00 worth of
common stock at the pricing set forth in the Debenture, Additionally, demand is made that you
immediately repay the loan of$50,000.00 plus interest therein at 10%from April 5, 1997 until
paid.
III
.^Eq'.t: prruniry Ec:plu.,tr
DEC 18 '97 09:49 BARN GIJZY 4 S TEFFENGER
December 17, 1997
Page?
Finally, I will draw your attention to Section 8 of the Debenture which requires that in any
proceeding to enforce the terms in the conditions of the Debenture,that the prevailing party shall
be entitled to recover its costs and expenses, including reasonable attorneys' fees. Your failure
• to promptly cooperate and honor your obligations will only result in incurring attorneys fees by
the Capital Fund which you will be obligated to pay.
Sincerely,
BARNA, GUZY& STEFFEN, LTD.
•
Lawrence R. Johnson
LRJ'tksf
cc: Roger A. Jensen
•
F
49
INFORMATION
of ��
k •
River
December 22, 1997
Mr. David Loch
Sherburne County Administrator
13880 Highway 10
Elk River, Minnesota 55330
Distribution: Sherburne County Board of Commissioners
Dear Mr. Loch and County Commissioners:
SUBJECT: Tax Increment District No. 8 - City of Elk River
• Enclosed is a check payable to the Sherburne County Treasurer in the
amount of$27,976. These funds are being returned for redistribution to the
county, school district, city, and miscellaneous taxing jurisdictions as
unspent tax increment dollars from Tax Increment District No. 8 in the City
of Elk River.
I wish to take this opportunity to inform the County Commissioners of the
importance of the use of tax increment financing as a tool to encourage
economic development and redevelopment in the city of Elk River. TIF
District No. 8 was created in 1990 to help facilitate a redevelopment project
at the corner of Main Street and Lowell Avenue in downtown Elk River. The
redevelopment project consisted of the acquisition, clearing, and preparation
of the site for construction of an approximately 6,000 square foot dental
clinic. Such property has a current estimated market value of approximately
$600,000.
The use of tax increment financing made this project possible, and without it,
the project would not have occurred and the site would likely have the same
underutilized appearance as it did prior to 1990. Additionally, I can say with
some certainty that if the dental office site were not redeveloped, the Elk
River Housing and Redevelopment Authority would not have looked
favorably upon the acquisition of the adjacent site at the corner of King
• Avenue and Main Street. Were it not for these two projects being completed,
13065 Orono Parkway • P.O. Box 490 • Elk River, MN 55330•TDD &Phone: (612)441-7420• Fax: (612) 441-7425
the value of the county's former administration building would likely have
• been significantly less than the price for which it was sold to School District
No. 728. The school district may not have even been interested in the
building if the condition of that block had not been significantly improved
through utilization of tax increment financing to acquire and demolish the
underutilized buildings.
I understand the Commissioners sensitivity toward the use of tax increment
financing if you choose to not believe in the "but/for analysis." The but/for
analysis states that but for the use of tax increment financing, the project
would not become a reality. In all cases, the City of Elk River has applied the
but/for analysis to the creation of each and every tax increment district.
Without utilizing the tax increment tool, the City of Elk River would have a
significantly less desirable appearance and tax base than it currently has.
The impact of tax increment can been seen in examples such as this, whereby
upon decertification, a significant amount of tax base is created which would
otherwise not have been created.
Attached also is a copy of two resolutions which decertify Tax Increment
District No. 8 as discussed in the body of this letter, and also decertifying Tax
Increment District No. 5. Tax Increment District No. 5 generated
approximately $140,000 in tax revenues in 1997. These tax revenues, based
• on a multimillion dollar estimated market value, upon decertification at the
end of 1997, are available to the benefit of all taxing jurisdictions.
It has and always will be the city's effort to utilize the tax increment tool in
an effective and efficient manner, and to apply a very strict but/for analysis
to each and every project which is considered for any type of public financing.
Thank you for the opportunity to share this information. If you have any
questions or comments, please feel free to call me any time at City Hall.
Sincer y
- 7
Paul T. Steinman
Director of Economic Development
c: Hank Duitsman, Mayor
Pat Klaers, City Administrator
Lori Johnson, Assistant City Administrator
Economic Development Authority
•
INFORMATION
RESOLUTION 97 - 124
• CITY OF ELK RIVER
COUNTY OF SHERBURNE
STATE OF MINNESOTA
RESOLUTION DECERTIFYING TAX INCREMENT FINANCING
DISTRICT NO. 5 LYING WITHIN DEVELOPMENT DISTRICT NO. 1
• IN THE CITY OF ELK RIVER
BE IT RESOLVED,by the City Council of the City of Elk River, Minnesota
as follows:
WHEREAS, the City created Tax Increment Financing District No. 5 in
1988; and,
WHEREAS, TIF District No. 5 was utilized as a financing mechanism to
fund a manufacturing project in the Elk River Industrial Park;
and,
WHEREAS, all funds identified within the Tax Increment Financing Plan
for Tax Increment Financing District No. 5 have been
expended; and,
WHEREAS, excess tax increment revenues which have been generated will
be expended by December 31, 1997, on public improvements
and/or land acquisition as identified within a Modification to
the Tax Increment Financing Plan for Tax Increment
Financing District No. 5 adopted December 1, 1997; and,
WHEREAS, Tax Increment Financing District No. 5 accomplished the
objectives as set forth within the Tax Increment Financing
Plan for Tax Increment Financing District No. 5 and the
Development Program for Development District No. 1; and,
WHEREAS, the manufacturing project facilitated through the use of tax
increment dollars generated from Tax Increment Financing
District No. 5 has created and sustained substantial
employment and tax base within the City of Elk River, School
District 728, and Sherburne County; and,
WHEREAS, the tax revenues generated from properties within Tax
Increment Financing District No. 5 would not be available on
• January 1, 1998, because the project would not have been
completed without utilization of Tax Increment Financing;
• and,
WHEREAS, redistribution of these tax revenues in 1998, based upon 1997
taxes payable, will be approximately as follows:
• City of Elk River - $ 30,646
• Sherburne County - $ 30,282
• School District 728 - $ 77,420
• Miscellaneous Jurisdictions - $ 1.652
Total $140,000
NOW, THEREFORE,be it resolved by the City Council of the City of Elk
River as follows:
I. That Tax Increment Financing District No. 5 shall be decertified on
December 31, 1997, for taxes payable 1998; and,
II. That the City Council of the City of Elk River hereby directs staff to
take steps necessary to decertify Tax Increment Financing District No.
5 including providing notification to Sherburne County and the
• Minnesota State Auditors Office.
Passed and adopted by the City Council of the City of Elk River this 15th day
of December, 1997.
� ienry A Duitsman, Mayor
v !i
ATTEST:
Sandra A. Thackeray, City Clerk
IP
INFORMATION
RESOLUTION 97 - 125
• CITY OF ELK RIVER
COUNTY OF SHERBURNE
STATE OF MINNESOTA
RESOLUTION DECERTIFYING TAX INCREMENT FINANCING
DISTRICT NO. 8 LYING WITHIN DEVELOPMENT DISTRICT NO. 1
IN THE CITY OF ELK RIVER
BE IT RESOLVED,by the City Council of the City of Elk River, Minnesota
as follows:
WHEREAS, the City created Tax Increment Financing District No. 8 in
1990; and,
WHEREAS, TIF District No. 8 was utilized as a financing mechanism to
facilitate a redevelopment project in downtown Elk River; and,
WHEREAS, all funds identified within the Tax Increment Financing Plan
for Tax Increment Financing District No. 8 have been
expended; and,
• WHEREAS, Tax Increment Financing District No. 8 accomplished the
objectives as set forth within the Tax Increment Financing
Plan for Tax Increment Financing District No. 8 and the
Development Program for Development District No. 1; and,
WHEREAS, the redevelopment project facilitated through the use of tax
increment dollars generated from Tax Increment Financing
District No. 8 has created and sustained substantial
employment and tax base within the City of Elk River, School
District 728, and Sherburne County; and,
WHEREAS, the tax revenues generated from properties within Tax
Increment Financing District No. 8 would not be available on
January 1, 1998, because the project would not have been
completed without utilization of Tax Increment Financing;
and,
• WHEREAS, redistribution of these tax revenues in 1998, based upon 1997
taxes payable, will be approximately as follows:
• City of Elk River - $ 4,772
• Sherburne County - $ 4,715
• School District 728 - $12,055
• Miscellaneous Jurisdictions - $ 257
Total $21,799
NOW, THEREFORE, be it resolved by the City Council of the City of Elk
River as follows:
I. That Tax Increment Financing District No. 8 shall be decertified on
December 31, 1997, for taxes payable 1998; and,
II. That the City Council of the City of Elk River hereby directs staff to
take steps necessary to decertify Tax Increment Financing District No.
8 including providing notification to Sherburne County and the
Minnesota State Auditors Office.
• Passed and adopted by the City Council of the City of Elk River this 15th day
of December, 1997.
yJ ^ /J
`
Henry A. Dui:tsman, Mayor
ATTES` :
WA—
Sandra
A Sandra A. Thackeray, City Clerk /
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