Loading...
HRA Minutes 01-06-1999 . . . MINUTES MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY WEDNESDAY, JANUARY 6,1999 Members Present: Chair Steve Andrews, Vice Chair Bob Murray, Dan Frie and Darrin Lahr Members Absent: Brad Barger Council Liaison Absent: Brian Stumpf Staff Present: Deputy City Administrator Jeff O'Neill and Executive Director Ollie Koropchak 1. Call to order. Chair Steve Andrews called the meeting to order at 7:00 p.m. 2. Consideration to approve the December 9, 1999 HRA minutes. A MOTION WAS MADE BY BOB MURRAY AND SECONDED BY DARRIN LAHR TO APPROVE THE MINUTES, AS WRITTEN, OF THE HRA MEETING OF DECEMBER 9, 1999. Motion carried unanimously. 3. Consideration of adding agenda items. No additional items. 4. Consent agenda. A. Consideration to approve the Certificate of Completion for Allied Companies, LLC. Executive Director Ollie Koropchak stated that, as of this date, the Certificate of Occupancy had not been issued on this property; therefore the HRA cannot approve the Certificate of Completion. A MOTION WAS MADE BY DARRIN LAHR AND SECONDED BY BOB MURRAY TO TABLE THIS ITEM. Motion carried unanimously. . . . B. Consideration to approve the Certificate of Completion for Blue Chip Development Company. Executive Director Ollie Koropchak stated that, as of this date, the Certificate of Occupancy had not been issued on this property; therefore the HRA cannot approve the Ccrtificate of Completion for Blue Chip. A MOTION WAS MADE BY DARRIN LAHR AND SECONDED BY BOB MURRAY TO TABLE THIS ITEM. Motion carricd unanimously. 6. Consideration to review affordable housing market study and to approve TIF assistance for the redevelopment of the Klucas property with a recommendation to the City Council. Ollie Koropehak reviewed the agenda item stating that at the December 9, 1998, BRA meeting Brad Larson gave a presentation on the proposed concept plan for redevelopment of the Klucas property. Mr. Larson requested TlF assistance in an amount not-to-exceed $10,000 for site cleanup ffild a percentage of tax increment to reduce rental rates. Mr. I,arson also requested a Letter of Intent for submittal with the Minnesota Housing Finance application. The liRA had postponed making a recommendation to the City Council until they had reviewed the Market Study. The agenda packet containcd a summary of the Market Study. The complete study was not complete in time to be included in the agenda packet. Mr. Larson stated that the Market Study was at the printers and would be available soon. Dan Frie asked if the renters paid a certain percent of income. Mr. Larson stated that the rent is pre-set plus utilities. Ollie Koropchak asked if the Planning Commission needed to review the project. Jeff O'Neill stated that there were no set-backs required, however, the Planning Commission would have to do a site plan approval. Ms. Koropchak asked Mr. Larson how many units would be built in Phase 1 ffild the anticipated completion date. Mr. Larson stated that 32 units would be built in Phase I and 28 Units in Phase II. The plan is for all 32 units to be built and ready to rent in 1999. Darrin Lahr asked if the maximum rent was $875 under BUD. Mr. Larson stated he requested a semi-annual "rebate" of 50% of the project taxes paid for a period of five years to obtain rent reductions. Darrin Lahr asked Mr. Larson if~ after five years, the rents would increase. Mr. Larson stated that the rents would increase. lIUD usually allows a 2-3% increase per year. The tenants wi II sign a year to year lease ffild a letter will be sent to the tenants letting them 2 . . . know of the coming rental increase. There will be full disclosure at the time of renting. Bob Murray wanted to know if all the units were three bedrooms and how many rental units were currently in Monticello. Mr. Larson stated that all the units are three bedrooms. He was not sure of the number of rental units, but the expanded Market Study would show that information. Darrin Lahr wanted to know how the abatement would be handled. Mr. Larson stated that the company will pay their taxes twice a year to the County and then the City will rebate a portion baek to the eompany. Bob Murray asked if the County also participated. Ms. Koropchak stated that she would eheck with Wright County to make sure that they will partieipate. A MOTION WAS MADE BY STEVE ANDREWS AND SECONDED BY DAN FRIE TO APPROVE TIF ASSISTANCE FOR REDEVELOPMENT OF THE KLUCAS PROPERTY WITH THE SAID RECOMMENDATION TO THE CITY COUNCIL. Jeff O'Neill stated that he felt the developer should have considerable diseussion with the new mayor to obtain his input regarding any City assistance. Motion carried unanimously. 7. Consideration to approve finaneing the services of Miehael Sehroeder as faeilitator and coordinator of the January 20 council/commission workshop meeting relating to the North Anchor. Darrin Lahr stated that Mr. Schroeder's letter indicated the workshop would last no longer than two hours and he felt this was not realistic. Executive Director Ollie Koropehak stated that Mr. Schroeder would serve as facilitator with each commission sharing in the diseussion on the River Front. It is her wish that everyone has a chance to voice their opinion. It may be necessary to establish some form of public participation. Dan Frie asked if there had been any objections to the Revitalization Plan adopted by the Council. Ms. Koropehak stated that as far as she knew, there had been no objections voiced. It was felt the River Front development should be thought out carefully. Darrin Lahr asked if we were hoping to have a resolution to the matter in this workshop. Ms. Koropchak stated it may be decided to obtain public input. Steve Andrews would like a closed end on this workshop. ~ .) . Darrin Lahr stated that it concerned him that nothing would be accomplished. Ms. Koropchak wants everyone to be on the samc wave length. Bob Murray statcd that in the workshop, information should be gathered and summarized. He did not feel it was necessary to takc it to the pubic as there had been public input on the Revitalization Plan. Ms. Koropchak stated that Mr. Kembal from Duluth will bc present at the workshop to share the Plan Duluth used in their River Front Project. Steve Andrcws felt that there should be a goal of the workshop; that wc should know exactly what we are being asked to do. It was Ms. Koropchak feeling that it was a good time for commissioners to share ideas which will hopefully spur discussion. Darrin Lahr asked if two hours later we will know anything more than before the workshop. Dan Fric suggested that Brad Johnson show his proposal at the workshop and see if this fits with what the commissioners want. . Darrin Lahr asked ifMr. Johnson's proposal fit with the Comprehensive Plan. Dan Frie commented that Brad Johnson's was the first plan presented. Darrin Lahr stated that he wants to know where we are going with the North Anchor. Bob Murray felt that the things Brad Johnson presented are marketable. Darrin Lahr stated that Mr. Johnson will only bring in things that will make him money. Also, Darrin felt that Mr. Schroeder must be clear on the need for resolution on this issue. Ms. Koropchak stated that it was a public meeting and everyone was invited. A MOTION WAS MADE BY STEVE ANDREWS AND SECONDED BY BOB MURRA Y TO APPROVE FINANCING THE $500 PLUS EXPENSES NOT TO EXCEED $150 FOR "rHE SERVICE OF MICHAEL SCIIROEDER, HOISINGTON KOEGLER, ON JANUARY 20, 1999. Motion carried unanimously. Ms. Koropchak asked that Chair Steve Andrews and Mayor Belsaas run the joint meeting and see that it reaches a satisfactory conclusion. . 4 . . . 8. Consideration to authorize payment of monthlv HRA bills. A MOTION WAS MADE BY DARRIN LAHR AND SECONDED BY BOB MURRAY '1'0 AUTHORIZE PAYMENT OF THE MONTHLY lIRA BILLS. Motion carried unanimously. 9. Consideration of executive direetor's report. a) West Broadway Amoco parcel- Ollie Koropchak stated that JefT O'Neill reported that the party inquiring about putting in a auto repair and towing business at this site has decided not to proceed. b) Storage Agreement - Have not received a eopy of the agreement from Kennedy & Graven. c) 3 Walnut Street - Received the rent for January. e) Marketing - Darrin Lahr asked how much money was budgeted for Marketing in 1999. Ms. Koropehak stated that $35,000 had been budgeted for 1999. It was also stated the golf outing would be an annual event. 10. Consideration of reports: a) Community Center Small Group - Bob Murray stated that there is now a construction schedule with completion scheduled for November 1999. Jeff O'Neill stated that Mayor Belsaas had some positive ideas on managing the Community Center. He also stated that $4 million has already gone into the Community Center and large quantities of materials are on order. MCP - Steve Andrews - annual MCP meeting on January 13, 1999. b) 11. Other Business None 12. Adjournment. A MOTION WAS MADE BY DAN FRIE AND SECONDED BY BOB MURRAY TO ADJOURN THE HRA MEETING AT 8:00 P.M. Motion carried unanimously. ck~ Chair, Steve Andrews ~ Q_JlV~ Nancy Whalen, Recording Secretary 5