HRA Minutes 06-09-1999
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MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, .June 9, 1999 - 7:00 p.m.
Members Present:
Chair Bob Murray, Brad Barger, Darrin Lahr and Dan Frie. Member
Steve Andrews was absent.
Council Member:
Brian Stumpf
Staff Present:
Executive Director Ollie Koropchak and Recording Secretary Lori
Kraemer
1 . Call to Order
Chair Bob Murray called the HRA meeting to order at 7:00 p.m.
2.
Consideration to approve the Mav 12. 1999 HRA minutes.
A MOTION WAS MADE BY BRAD BARGER AND SECONDED BY DARRIN
LAHR TO APPROVE THE MINUTES, AS WRITTEN, OF THE HRA MEETING OF
MA Y 12, 1999. Motion carried lmanimously.
3.
Consideration of adding agenda items.
Executive Director Ollie Koropchak asked to add two items to the agenda.
a. Consideration of Ed Kauffmann to review using TIF for a condominium
development on 6th Street and Minnesota Street. This item was added to 7B.
b. Consideration of putting plan for TIF District 1-22 under the Executive
Director's report.
4. Consent Agenda.
a. Consideration to adopt a resolution approving the modification of TIF Plan for
TIF District No. 1-22 and to adopt a resolution approving the Pledge Agreement
between the HRA and City.
A MOTION WAS MADE BY BRAD BARGER AND SECONDED BY DAN FRIE TO
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TO ADOPT A RESOLUTION APPROVING A MODIFIED
REDEVELOPMENT PLAN FOR CENTRAL MONTICELLO REDEVELOPMENT
PROJECT NO.1 AND A MODIFIED TIF PLAN FOR TIF DISTRICT NO. 1-22, with
the addition of the block number which was not listed (Block 1). Motion carried
unanimously.
A MOTION WAS MADE BY BRAD BARGER AND SECONDED BY DAN FRIE TO
ADOPT RESOLUTION APPROVING TAX INCREMENT PLEDGE AGREEMENT
BY AND BETWEEN THE CITY OF MON'I'ICELLO, MINNESOTA, AND THE
MON'rICELLO HRA. Motion carried unanimously.
5. Consideration of items removed from the consent agenda for discussion.
None
6.
Consideration to swap HRA lot and Grassl lot on West Broadway.
This item was an add-on item to the lIRA agenda of May 12. Bill Grassl, Domino's
Pizza, asked the HRA to consider swapping his parcel located on the south side of West
Broadway for the HRA's lot located on the north side of West Broadway. Square footage
of lots are 7,095 and 10,065 respectively. The HRA 1996 appraisal of the northerly
parcel was $37,000 and was purchased for $50,000.
Prior to the HRA meeting, Mr. Grassl inquired of the City's interest to purchase a 6-foot
strip of his southerly lot giving the City the opportunity to create a walkway between the
business storefronts and the rear private and public parking lots consistent with the
Downtown and Riverfront Revitalization Plan. Hearing of Mr. Grassl's interest to swap,
the Council deferred the item to the HRA prior to taking action to acquire the 6-foot strip.
There was discussion regarding the feedback from the Council, DA T, MCP, Planning
Commission and North Anchor Committee with the DA T being the only committee
recommending to swap the individual lots.
After further discussion on how the HRA could help Mr. Grassl with his request, it was
suggested that Mr. Grassl retain air rights of approximately] 0 feet above the walkway.
A MOTION WAS MADE BY DARRIN LAHR AND SECONDED BY DAN FRIE OF
NO INTEREST TO SWAP THE HRA LOT AND THE GRASSL LOT WITH A
RECOMMENDA TION THE CITY COUNCIL CONSIDER PURCHASING A 6-FOOT
STRIP OF THE GRASSL LOT TO CREATE A W ALKW A Y FROM THE
STOREFRONT TO THE PARKING LOTS CONSISTENT WITH THE
REVIT ALIZA nON PLAN. Motion carried unanimously.
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7. Consideration to hear a presentation in concept form for development of a multi-housing
facility and consideration of interest to provide TIF assistance.
Harold Jesh called the Office of the HRA inquiring to the need for multi-housing in
Monticello and the opportunity for TIF assistance. Mr, Jesh previously worked for
Winkelman Building Corporation of St. Cloud and since formed a limited liability
company.
Harold presented a brief discussion requesting the lIRA consider awarding nF for this
housing project which would include approximately 4 one bcdrooms, 2 three bedrooms
and the rest would be large two bedrooms. They would include fireplaces and garages
and rent for approximately $600 per month. All units would be at market rate except
20% which would be set aside for four-member families. Mr. Jesh stated this projected
could not be done without TIF assistance. He has not done a complete comparison with
other rental units in Monticello but would be willing to do so if the BRA shows an
interest in this concept. Mr. Jesh was asked, assuming the location is acceptable, to
compare other 2 and 3 bedroom rentals in Monticello with comparable amenities. He
estimated the need for 15 years of available tax inerement or 90%.
The HRA would like more direction from the council once morc facts arc received and
questioned whether it was a priority of the HRA to use TIF for market rate housing.
A MOTION WAS MADE BY DARRIN LAHR AND SECONDED BY DAN FRIE TO
TABLE ANY ACTION AS PROJECT IS PREMATURE TO GAGE INTEREST TO
PROVIDE TIF ASSISTANCE, AND REQUESTED DIRECTION FROM THE CITY
COUNCIL RELATIVE TO THE USE OF TIF ASSISTANCE FOR MARKET RATE
HOUSING. Motion carried unanimously.
78 Consideration of proposal by Ed Kauflmann for possible TIF assistance for a
condominium development near Sixth Street and Minnesota Street.
Ollie Koropchak introduced Ed Kauffmann who addressed the HRA board and handed
out maps of his concept plan for Minnesota Street & 6th Street for a 20 unit condo
development. Presently, there arc 4 substandard houses on these lots. The previous city
council identified these as shanty town.
Lots 3, 4, 5, and parts of 6 & 7 which currently have 4 houses on them and require
demolition. It was previously suggested by the Mayor & Jeff O'Neill to possibly add
more housing to get the numbers up, the zoning is right, and they have gone thru Steve
Grittman and Jeff O'Neill who liked the idea. Ed stated it will take TIF money to put the
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project together.
Koropchak had previously ran the T1F estimates and stated a I-lousing District is
suggested, as a Redevelopment District docs not meet creation requirements. Mr.
Kauffmann stated the units would not be rentals, but sold to individuals and the property
would be taken care of by an association.
Mr. Kauffmann currently owns 1 lot, and had previously spoken to the owners of the
current homes who stated their interest in selling and would need to own all lots in order
to make the development work. The board agreed that getting rid of the housing that is
presently thcre and replacing with this typc of affordable housing would bc a good
dccision.
Koropchak inquired if there were relocation benefits offered to the current owners and
Mr. Kauffmann statcd no. Waivers should be signed as the HRA must inform people of
their relocation rights.
The consensus of the board was that they were not committed, but interested. Mr.
Kauffmann stated that he would have numbers put together for the next time hc meets
with the board. No action was necessary.
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Consideration to authorize payment of the past due water utilitv bill and authorize change
of Jocks for the HRA property located a 3 Walnut Street.
Since the May BRA meeting, as attached, is the communication with WCCA and the
commitment to pay $1,100 of the past due rent for 3 Walnut Street. In addition, Tammy
has paid the remaining past due balane of$225 and $300 toward June's rent with the
remaining expected this Friday. The new house lease of June 1, 1999, between the HRA
and Tammy Hacker is awaiting HRA signature.
Koropchak gave background stating that sinee the last HRA meeting, Tammy has made
payments and referred to the letters. Tammy was looking to pay the past due utility bill
herself. Ollie didn't see the need for HRA to pay. She also stated there have been several
complaints to city hall regarding the property and several un licenced cars parked there, as
well as debris such as sofas and carpet. City Administrator Rick Wolfsteller sent City
Inspector Gary Anderson to check on these complaints and cited the un licenced vehicles.
Rick Wolfsteller agrees to give notice to the renters if proper clean up of the debris is not
done.
The commissioners requested Koropchak draft a letter stating a 30-day notice to
terminate if cleaned up is not done and request the city cite other properties, if applicable,
along Front Street.
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A MOTION WAS MADE BY DARRIN LAlIR AND SECONDED BY DAN flUE TO
AUTHORIZE PA YMENT OF THE $84.88 WArER UTILITY BILL IF UNPAID BY
JULY 16, 1999 AND THE HRA NOT TO CHANGE LOCKS FOR TIlE PROPERTY
LOCATED AT 3 WALNUT STREET UNTIL AFTER THE 30 DAY NOTICE;
IIOWEVER, GAVE TAMMY PERMISSION TO CHANGE THE LOCKS HERSELF
A T HER EXPENSE PRIOR TO THIS 30 DAY PERIOD AS LONG AS A KEY IS
GIVEN TO TI IE CITY. Motion carricd unanimously.
9.
Consideration to adopt a resolution recommending the City COlillcil authorize city staff to
begin preparation for acquisition ofthc Goeman/Chadwick properties for industrial
development.
In 1996 and 1998, the HRA committed $75,000 each year for industrial development and
requested the City to match the funds. Therefore, a reserve fund of $300,000 exists for
industrial development.
A few years ago, the IDC called a meeting of the Council and commissions to stress the
importance of industrial development and to create an awareness of aggressi ve industrial
development programs offered by other communities. It appeared those communities
owncd industrial parks and recognized the importance of being "rcady for business".
Koropchak advised commissioners of the revised resolution consistent with the IDC
motion.
In working with prospects, Koropchak was informed by the marketing personnel, the
owner prefers to hold onto this property. The HRA is requested to adopt the resolution
which will go to city council on 6/14/99. City staff received two appraisals on this
property. The Chadwick property (85 acres): $275,000 & $290,000 and Second:
$375,000 to $410,000. The Goeman property (95 acres): $305,000 to $325,000 and
Second: $440,000 to $495,000. The city would need to buy the property and perhaps the
HRA would manage & market the property.
A MOTION WAS MADE BY BRAD BARGER AND SECONDED BY DAN FRIE
TO ADOPT A RESOLUTION RECOMMENDING THE CITY COUNCIL ACTIVEL Y
PURSUE ACQUISITION OF THE GOEMAN/CHADWICK PROPERTIES FOR
INDUSTRIAL DEVELOPMENT, AND AUTHORIZE CITY STAFF TO BEGIN
PREPARATION THEREOF. Motion carried unanimously.
10.
Consideration of an update relating to the non-certification and tax increment payment for
TIF District No. 1-18 and authorization of action if so determined.
Ollie Koropchak gave a briefrcview of the May 12 HRA meeting where the HRA was
informed of an upcoming letter from RDI. Attached is the RDI letter and my response of
May 27. Upon rcquest ofRDI, this appears on the lIRA agenda. Although the HRA
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attorney received a copy of the May 27 letter. Koropchak later requested comments
from the HRA attorney as a reaffirmation to the May 27 letter.
Attorney Bubul agreed and mentioned the HRA could make amcndments if saw fit but
basically agreed not to amend the contract. Ollie is 99% sure requirements will be met
and thcy will get thc full amount. Koropchak stated the HRA should pay them the
amount they have coming total from last year and this ycar, this year. It may not nced to
be amendcd.
A MOTION WAS MADE BY BRAD BARGER AND SECONDED BY DARRIN
LAHR TO CONTINUE FOR MORE INFORMATION.
YEAS:
NAYS:
ABSTAIN:
Members Barger, Lahr and Frie.
None
Member Murray
Motion carried.
11.
Consideration to authorize payment of monthly HRA bills.
The golf invoice was put under the marketing budget. Mainline bill belongs to EDA for
loan closing on 6/1/99. The company has rcimbursed the EDA.
A MOTION WAS MADE BY BRAD BARGER AND SECONDED BY DAN FRIE
TO AUTHORIZE PAYMENT OF BILLS. Motion carricd unanimously.
12. Consideration of Executive Director's report.
Ms. Koropchak reviewed the Executive Director's Report which was accepted.
Bob & Ollie went to visit Die Casting Co. regarding the 35,000 to 40,000 sq. ft. Last
week the prospect team individually met with Die Cast and looked at Monticello sites a
second time. Lenny Kirscht provided the uses and sources funding statement.
Darrin Lahr commented these were very impressive individuals, very interested in
Monticello- looking at starting up new process and being closer to their vendors, airport,
etc.
Bob Murray stated there was a logistics problem and they were looking at Wisconsin, but
someone wanted to be closer to Watertown. He would carry more weight in this
discussion. Ollie stated they ruled out Wisconsin; Becker was also mentioned.
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Koropchak also received an inquiry to NSP economic development, manufacturer of
refrigeration systems. She spoke with Paul at NSP who has not yet received follow-up.
Additionally, there has been eon tact with someone interested in leasing 3,000 to 5,000 sq.
ft., as well as interest in 75 - 100 acres by a larger user, who was locally recommended,
but no further contact.
Public Law Update: Ollie gave handouts on the Section in this book relating to TIF
enforcement.
Koropchak gave HRA members copies of the TIF plan for District 1-22.
The budget and plan notes public utilities and public improvements are eligible
expenditures. Koropchak wanted to clarify improvements for Walnut Street were eligible
costs; however, the HRA's prior discussion to allocate dollars for removal of blight areas
was acceptable.
13. Consideration of Committee Reports
a.
City Council/Brian Stumpf - Has no information. Ollie requested on behalf
of HRA, for guidance/direction from city council as to what council sees as
priorities of the HRA. Darrin Lahr asked that it was brought to the Mayor's
attention some concerns the they have on communication between the HRA and
city council. Stumpf stated he would convey these concerns to the council.
b.
Community Center/Bob Murray: Small group has not met for 3 weeks, next
meeting is June 24th. We have new director of community center and the basic
layouts of the center. Nothing else to report on other than everything going
according to schedule.
c.
MCP/Steve Andrews - Koropchak reported Amanda will work Mondays
and Fridays in the office with Joann Hagerson working opposite days while they
advertise. They are hoping to hire by 1 stof August.
d.
Marketing/Brad Barger and Darrin Lahr - Nothing new to report. Ollie reminded
them that the tour was canceled due to lack of interest, but Golf outing went on
with 14 golfers. Ollie would like to change this event to every other year.
e.
North Anchor/Bob Murray and Dan Frie - Dan was unable to attend last meeting.:.
Bob attended and stated they will retain Bridge Park as it is, as well as the area of
3 blocks along the water to remain as park land. Identified/targeted 5 year and
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20 year boundaries and requested council commit to an annual appropriation of
$200,000 until all properties are acquired. Will be developing general principles
and guidelines for development of North Anchor allowing developers flexibility
for creativity. They need to define a short term boundary and identify the fact that
the park will remain as a park with a few changes. They also need to look at uses
and what they would like to see there, as well as define what goes where which
limits what a developer can offer. Would like to keep it "open" to ideas.
Compiled recommendations will be submitted to city council in July.
14.
Other Business
15.
Adjournment
A MOTION WAS MADE BY DARRIN LAHR AND SECONDED BY BRAD
BARGER TO ADJOURN THE HRA MEETING AT 9:55 P.M. Motion was carried
unanimously.
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Chair, Bob Murray /
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