HRA Minutes 10-04-2000
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MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, October 4, 2000 - 7:00 p.m.
505 Walnut Street - Bridge Room
Members Present:
Chair Darrin Lahr, Vice Chair Dan Frie, Brad Barger. Steve Andrews. and
Council Liaison Brian Stumpf
Members Absent:
Bob Murray
Officers Present:
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6.
Guest:
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Treasurer Rick Wolfsteller, Executive Director Ollie Koropchak, Deputy
City Administrator Jeff O'Neill and Recorder Lori Kraemer
Scott Rolfe. Skipper's Pools & Spas
Call to Order.
Chair Darrin Lahr called the meeting to order at 7 PM..
Consideration to approve the 1.1 RA minutes of September 6, 2000.
A MOTION WAS MADE BY BRAD BARGER AND SECONDED BY STEVE
ANDREWS TO APPROVE THE MINUTES OF THE SEPTEl'vIBER 6, 2000 !-IRA
MEETING WITH A CORRECTION MADE TO PAGE 2, PAR.AGRAPH 5,
OMITTING SENTENCE NUMBER 2 REGARDING MR. KAUFFMAN SECURING
PROPERTIES. Motion carried unanimously.
Consent Al!enda. None.
Consideration of adding or removing consent al!enda items. None.
Consideration of items added or removed from the consent al!enda for discussion. None.
Public Hearing - Consideration to adopt a resolution amending the liRA Business
Subsidv Criteria.
Ollie Koropchak. Executive Director. provided the staff report regarding the
consideration to amend the HRA Business Subsidy Criteria based on the
recommendations of the !-IRA Attorney.
A draft copy of the criteria with the proposed amendments by Attorney Bubul was
provided f()r revie\\. The proposed amendments addressed an increase of the wage le\'(,~1
and other criteria to meet the requirements set by the Minnesota Legislators.
Chair Darrin Lahr opcnt::d tl1t:: public hearing. Hearing no comments, the public hearing
was cIost::d.
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A MOT'ION WAS MADE BY STEVE ANDREWS AND SECONDED BY BRAD
BARGER TO ADOPT A RESOLUTION AMENDING THE !-IRA BUSINESS
SUBSIDY CRITERIA. Motion carried unanimously.
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Consideration to discuss renewal of the Lease Aureement between the !-IRA and SPS
Services, Inc. (Skipper's Pool)
Ollie Koropchak, Exccutive Director. provided the staff report regarding the lIRA Leasc
Agreement with Scott Rolfe. SPS Services, Inc. The duration of the lease began AprilS,
2000 ending September I, 2000. By no later than August 31, 2000, the lessee shall
cause the drainage and removal of all pools and spas from the Premises...... Lessee also
shall be charged and hereby agrees to pay $25 for each additional 24-hour period, or any
part of 24 hours. that Lessee occupies the premises after the expiration or proper
termination of this agreement........The Certificate of Liability Insurance is etTective from
5/1 /2000 to 5/1/2001.
Koropchak spoke with Mr. Rolfe the \veek of September 18 to see if he had removed the
pools and spas from the premises to which he informed that he had not. and that he
wished to extend the lease and discuss the collection of the $25 pCI' day fee.
Rolfe stated it was his intcnt to try this as on a trial basis and if all went welL to extend
his conditional use permit. Lahr noted the HRA can only allow seasonal use to which
Rolfe stated this was not storage but a display and that it was not visible without coming
through the store and into the back fence. It was discussed as to why, if this was the
applicant's intent from the start. did he wait until after the lease had expired and the HRA
contactcd him to advise that he would be asking to renew his conditional use permit.
There was discussion that initially, due to the liability involved, this was to be a trial
period and Rolfe was to comc back to the HRA when this permit expired.
There was further discussion as to the possibility of this property being leased year
around. whether this lot could be rented to Rolfe for the amount equal to the taxes, or
possibly the lease be renewed evcry six months. Koropchak noted that these questions
would have to be vcrified by the HRA's attorney.
Lahr and Andrcws stated their opinions had not changed in that they were not
comfortable with having (filled) pools on display on that property. Barger and Fric stated
thcir desire to support the dO\mtown bUSinesses and that they prefcrrccl the lot be uscd
rather than sit empty. Jeff O"NeiIL Deputy City Administrator. stated that this would
necd to be ajoint conditional LIse pcrmit application by the !-IRA and wIr. Rolfe. and as
the owner. the I-[RA as would IKcd to start thc process.
A MOTION WAS MADE BY BRAD BARGER TO EXTEND THE LEASF. SUBJECT
TO MODIFICATION AND SUBSEQUENT COSTS THAT T!-IE !-IRA MA Y INCUR,
AND SUBJECT TOnIE CONDITIONAL USE PERMIT. DAN FRIE SECONDED
THE MOTION. With a 2 to 2 vote. Darrin Lahr and Steve Andrews voting in
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opposition. the motion failed.
After further discussion, Scott Rolfe asked that the $25 per day fee cease until this matter
is settled.
A MOTION W AS MADE BY DARRIN LA!-IR AND SECONDED BY STEVE
ANDREWS TO TABLE ANY ACTION ON THE PENALTY UNTIL TIlE NEXT
REGULAR SCHEDULED /--IRA MEETING OF NOVEMBER 1,2000. Motion carried
unanimously.
8. Continuation - Consideration to hear nrollress relative to research of purnose/obiective
and fundin!! t()r a scattered housinu pro!!ram and a motion of actionldirection if so
necessary.
Commissioner Frie updated the liRA on the progress he and O'Neill made in identifying
potential homes for a scattered housing program. He advised that they took digital
pictures. collected market values. owner names. etc. and are in the process of putting
together a packet of information for the HRA members to review.
It was again noted that grant money is available through the state for demolitions. etc.,
and the agency working with the grant program actually handles the writing of the grant.
It was explained by Frie how the grants \\ork and that the City would be in cooperation
with the HRA in granting reduced huilding permit fees, etc. as well. It was noted the
grant money has to be used within 2 years. A letter was to be drafted to the property
owners advising them vvhat the City's intent was and compiling the information hefore
applying for the grant. They advise first to define what types of housing the City is
looking for and what the City is looking for to make the houses compatible. This will
be discussed at the next HRA meeting.
9.
Continuation - Consideration to finalize 1999 Authoritv Cashtlows and nrioritize
Authoritv !loals and expenditures.
Ollie Koropchak Executive Director provided the staff report regarding the recap of
available tax increment by district which was presented prev-iously and that the liRA
agreed to proceed vvith the Amoco site redevelopment and hegin the process for
acquisition of the north lots of Block 5-+ and Block 6-+. 63. and most northeasterly lot of
Block 62. Since that time. Wolfsteller and Koropchak met with Mark Ruff Ehlers &
Associates. who concurred \vith the use of the excess TI and cunfirmed '-I- and 5 year
rules.
Dan'in. Dan. Jeff and Koropchak met v\ith Hans I lagen Homes relative to his interest for
residential rede\elopment within the North /\nehor area. A second meeting was held and
preliminary concepts were presented. All Cuuncil and I IRA memhers were int()t"med of
the concept. At the second meeting. the larger scope of the North Anchor. the
retail/commercial component. was addressed and the firm of KKE was suggested.
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Darrin, Dan, Jeff and Koropchak met with KKE who will test the market and interested
developers lor ideas or concepts which best attract a draw to the North Anchor area. Of
the three sites: Amoco. River Street/Broadway commercial. and Front Street housing and
given the time constrains; the River Street/Broadway commercial development would
generate the greater amount of tax increment; however. now competes with the
retail/commercial market for the Farrell Gas site. The hOllsing development creates the
density to support retail/commercial development. Office space for professionals such as
attorneys, accountants, real estatc agents would generate a draw for employment and
potential housing, restaurant. and other retail/commercial development.
The HRA Chair requested a recap of tax increment available for redevelopment of the
North Anchor and estimated revenues and expenditures. Additionally, he requested the
HRA begin to draft a list of the economical benefits associated with the redevelopment or
the North Anchor project.
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Darrin and Koropchak have met with O'Connor and Bostic and have a meeting scheduled
with the Carlson's tor October 11. The purpose of these meetings is to inform the
property owner of the lIRA's interest to acquire their prope11y, the need for the HRA to
update or obtain an appraisal. and that a relocation advisor will be contacting them to
advise them of their relocation rights and benefits. It is f()r that reason, the HRA. is asked
to authorize the hiring of an appraiser and a relocation advisor. The BRA was advised to
obtain or update the appraisals prior to making an offer to acquire.
Darrin Lahr summarized his meeting with f Ians Hagen. noting Hagen is not looking at
closing otf Front St. as he doesn't need the entire block. He does need the river front
property. O'Neill noted that a path could be put in close to the river but they would need
to watch the removal of trees. Lahr also advised that Hans Hagen had suggested giving
the current owners a certain amount of dollars to "spiff up" the apartment building that
would not be removed. The types of homes Hagen would desire in that area would be
approximately I ,600 to 2,000 sq. ft. units at approximately $ I 50,UOO to $200.000 per .
unit. l-Iagen also stated the factor of the lot prices he would be chargcd which would be
subtracted from the "quality" of the units. The park area interested him also.
Koropchak also noted that several of the members and herself had met with Kathy from
KKE who would look into the market and come back to them with inrormation. It was
suggested that the HRA have a joint meeting with the Parks Commission assuring them
that they were not interested in taking all the park land but to work with them on this
project.
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Koropchak & Lahr also met with one of the owners. Connor. and advised him that the
liRA is moving ahead with this proposal and what he as an owner could expect. Their
target is for getting appraisals by the end of Oct. and purchase agreements by January.
Sandy Bostic was interested but would like to stay in her home until mid June. Another
meeting is set for next week "vith the Carlson's.
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There was further discussion regarding the types of housing Hans Hagen proposes to put
in which would be 10 units on 33' lots. It was asked if this fits the goals of the North
Anchor. Koropchak also advised that a tinance plan does need to be in place by Junc 28,
2002 or the lIRA would lose thcir ability to use the funds.
Relocation to advise onlv - Ken Helvey:
A MOTION WAS MADE BY DAN FRIE AND SECONDED BY BRAD BARGER
AUTHORIZING APPRAISER TERRY NAGORSKI TO UPDATE OR OBTAIN AN
APPRAISAL FOR THE O'CONNOR. BOSTIC AND CARLSON PROPERTIES FOR
SUBMISSION TO THE HRA BY NOVEMBER 1,2000. Motion carried unanimously.
A MOTION WAS MADE BY DAN FRIE AND SECONDED BY BRAD BARGER
AUTHORIZING RELOCATION ADVISOR KEN HELVEY TO ADVISE O'CONNOR,
BOSTIC AND CARLSON OF THEIR RELOCATION RIGHTS. Motion carried
unanimously.
10.
Consideration to authorize pavment of the monthly HRA bills.
A MOTION WAS MADE BY DAN FRIE AND SECONDED BY BRA.D BARGER TO
AUTHORIZE PAYMENT OF THE MONTI-IL Y HRA BILLS. Motion carried
unanimously.
11.
Consideration of Executive Director's Report.
Koropchak provided updates on the Kauftinann proposal; the HRA rental house on
Walnut SL High speed access to be addressed at thc next IDC meeting; Amoco Site
proposal/status; an RFP f()r a company looking at a 300,000 sq. ft. building either in
Monticello or St. Cloud; a 100,000 sq. ft. building in Monticello or St. Cloud - no further
information; as well as the Chadwick/City negotiations.
12. Committee reports. There were no updates.
13. Other Business. There was no other business.
14. Adiournment
A MOTION WAS MADE BY DAN FRIE AND SECONDED BY BRAD BARGER TO
ADJOlJRN THE MEETING AT 9 PM. Motion carried unanimously.
JrrdlL
I RA Chair
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