HRA Minutes 03-29-2005
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MINUTES - SPECIAL MEETING
MONTICELLO HOUSING ANn REDEVELOPMENT AUTHORITY
Tuesday, March 29, 2005 - 6:00 p.m
505 Walnut Street - River Room
Commissioners Present:
Chair Bill Fair, Steve Andrews, Dan Frie, and Brad Barger.
Commissioner Absent: Darrin Lahr.
Council Liaison Present:
Wayne Mayer.
StatT Present: Ollie Koropchak.
I. Call to Order.
Chair Fair called the HRA special meeting to order at 6:00 p.m. declaring a quorum.
2.
Consideration to discuss scheduled public auction for the propertv located at I,ots 3. 4, & 5, Block
54.
Koropchak provided background information about the public auction scheduled for March 30,
6:00 p.m. at the VFW Club in Maple Lake. The 8-Plex located at 11 Walnut Street and currently
owned by Paul Wurm is on the auction. This property lies within the Downtown Monticello
Revitalization Plan, to the south of the Hans Hagen redevelopment project, and the HRA
currently owns another lot within Block 54. Additional information provided to the commissioners
was a site map, tax information, inside apartment photos, and redevelopment goals for the area.
Lastly, Koropchak identificd possible financing sources for acquisition and provided acquisition
estimates for the southerly half of Block 54 and TIF estimates based on the assumption of a 30-
unit condo building.
Commissioner Frie provided a MSL on the 8-Plex listed at price of$750,000 and stated the
property has been listed for 209 days. A comparative and income approach eomp for a 6-Plex
located in Maple Lakc was provided which sold for $876,000. Frie noted it was difficult to
provide comparatives as only one apartment building has sold in Wright County recently.
Auctions became a popular method to sell single family housing in the past few years; however,
the real estate market is now soft.
Koropchak informed the commissioners potential developers and the auctioneer had talked to
O'Neill and herself about future plans for the area and the option for the apartment to remain as
is. Chair Fair felt the HRA roles was to be a faci I itator to a redeveloper and had concerns if the
property was purchased for income purposes, the property might deteriorate. Because the
apartment was constructed in 1964, it is likely the building has asbestos and does not meet ADA
requirements.
Frie noted at a price of $650,000, the rate of return would be 7% plus there is an additional 8%
premium. Members noted relocation costs for eight tenants at between $5,000-$10,000 each and
the need to re-zone the area for higher density. It was suggested the HRA representatives
circulate the HRA's interest to be a facilitator for redevelopment and to not bid against viable
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HRA Minutes - 03/29/05
redevelopers. Andrews preferred, given the option of the Wurm or Warner parcels, to control thc
largcr parccl first (Wurm) and noted his comfort level to grant Dan Frie the authority to act as
bidder on behalfofthe HRA at the auction.
3. Consideration to approve authorization or deny authorization to bid on the said propcrtv and to
determine maximum amount of bid if applicable.
COMMISSIONER BRAD BARGER MADE A MOTION TO APPROVE THE
AUTHORIZATION OF A DISCRETIONARY BID IN THE AMOUNT OF $550,000 PLUS
8% PREMIUM FOR TIlE PROPERTY LOCATED AT 11 WALNUT STREET,
MONTICELLO, MN. COMMISSIONER DAN FRIE SECONDED TIIE MOTION AND
WITH NO FURTHER DISCUSSION, THE MOTION CARRIED. HRA Chair Bill Fair and
Commissioner Dan Frie were delegated to represent thc HRA at the auction. Koropchak to
request a down paymcnt chcck of $25,000 and to prepare a certification of authorization to
accompany thc rcprcscntativcs. Should the HRA be successful at thc auction, the
commissioners will discuss the next step at thc April BRA meeting.
4.
Other.
Koropchak informcd the commissioners of a telephone call from Andrca Angier, 319 East
Broadway. They had received the Transformation Home Loan intormation in the mail; howcvcr,
they wanted to know if the HRA was interested in purchasing their home at the mortgage price
of$199,000. She indicated with six children they had outgrown their home which needed
improvements and just wanted out. She also notcd the area was zoned for commcrcial.
According the property tax intormation for payable 2005, the market value is $114,500. Given no
immediate redevelopmcnt plans tor the area, the HRA expressed no interest to purchase.
5.
Adjournmcnt.
WITI I NO FURTIIER BUSINESS, BRAD BARGER MADE A MOTION TO ADJOURN
TIlE SPECIAL HRA MEETING. SECONDED BY STEVE ANDREWS, THE MEETING
ADJOURNED AT 7:00 P.
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