HRA Minutes 07-18-2005
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MINlJTES
MONTICELLO HOUSING AND REDEVELOPMENT AlJTHORITY
Monday, July 18,2005 - 6:00 p.m.
505 Walnut Street - Bridge Room
Commissioners Present:
Vice Chair Dan Frie, Brad Barger, and Bill Fair.
Commissioners Absent:
Chair Darrin Lahr and Steve Andrews.
Council Liaison Present:
Wayne Mayer.
StafTPresent: Rick Wolfsteller and Ollie Koropehak.
Guests: Luke Dahlheimer, Dahlheimer Distributing, and Brad Johnson, Lotus Realty Services.
I. Call to Order.
Vice Chair Frie called the special HRA meeting to order at 6:00 p.m.
2.
A. Consideration to approve entering into a Preliminary Development Agreement between the
I IRA and Rockv Mountain Group. LLC.
Luke Dahlheimer, Dahlheimer Distributing Company, attended the lIRA meeting and confirmed
the company's plan to IT-locate to the Monticello Business Center. They are proposing to
construct a 54,000 sq ft oniee/distrihution center and purchase 8.64 acres of land. Five acres
of the 8.64 acres qualify f<Jf the $.95 per sq 11. price and the remaining 3.64 acres will be at
market price of$2.15 per sq. ft. plus trunk fees for 3.64 acres. 'fhe company currently
employs 28 full-time permanent people at average wage-levels of $20.21 per hour (base)
without henefits. Within two years, plan to hire at least an additional three people hringing the
average wage level to $19.90 per hour without benefits.
The developer has submitted the $10,000 non-refundable deposit and WSB was authorized to
begin survey work for preparation of the plat. Nelson Builders of Buffalo are the general
contractors.
BRAD BARGER MADE A MOTION TO APPROVE ENTERING INTO THE
PRELIMINARY DEVELOPMENT AGREEMENT BETWEEN THE HRA AND ROCKY
MOUNTAIN GROUP, LLC. BILL FAIR SECONDED THE MOTION AND WITH NO
FURTHER DISCUSSION, TIlE MOTION CARRIED.
B. Consideration to adopt a resolution rec.westing the citv council call for a public hearing date
on the proposed modification to the Redevelopment Plan fcw Central Monticello
Redevelopment Proiect No. I and the proposed establishment of '1'1 F District No. 1-36.
Given the previous action, Ehlers and Kennedy & C:;-raven will begin preparation of the TIP
HRA Special Meeting Minutes - 07/18/05
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District Plan for TIF District No. 1-36, an economic district, and the Purchase and Contract for
Development. I n lieu of keeping the project on a fast-track schedule, the commissioners were
requested to adopt the forgoing resolution. Initially the public hearing was scheduled for
September 12 but was moved forward to August 22 to meet the aggressive schedule. Via an
agreement they have until April 2006 to vacate the existing site but fi)f a 1031 lite-time
exchange the project needs to be complete by end of 2005.
BILL FAIR MADE A MOTION TO ADOPT A IZESOLUTION REQUESTING TIlE
CITY COUNCIL CALL FOR A PUBLIC HEARING DATE ON THE PROPOSED
MODIFICATION TO THE REDEVELOPMENT PLAN FOR CENTRAL MONTICELLO
REDEVELOPMENT PROJECT NO.1 AND THE PROPOSED ESTABLISHMENT OF
TIF DISTRICT NO. 1-36. BRAD BARGER SECONDED THE MOTION AND WITH
NO FURTHER DISCUSSION, THE MOTION CARRIED.
C. Consideration to adont a resolution calling for a public hearing on the proposed Business
Subsidy to Roeky Mountain Group LLC.
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Koropehak explained since Dahlheimer is receiving a business suhsidy (land write-down) of
over $100,000, the HRA by Minnesota Statutes is required to hold a public hearing. The
resolution simply requests the HRA call for such public hearing.
BRAD BARGER MADE A MOTION TO ADOPT A RESOLUTION CALLING FOR
THE PUBLIC HEARING ON THE PROPOSED BUSINESS SUBSIDY TO MOUNTAIN
ROCKY GROUP, LLe. SECONDED BY BILL FAIR AND WIT!I NO fURTHER
DISCUSSION, THE MOTION CARRIED.
3. Consideration to hire a firm for Redevelopment TIF District No. 1-35 inspection service.
Koropchak explained the HRA hires the inspection consultant and the developer pays for the
service. The Director has attempted to get clarification as to the education, role, qualifications,
and experience of an individual or firm acceptahle to Bubul and Ruff to complete the inspection,
interpret the law, and prepare a written report. The LHB proposal: Not exceed $5,400 for
hourly basis fee plus reimbursement of inspection time and full report. The cost and appeared
monopoly is the issue with the developer and the HRA somewhat agrees; yet, accepts their
attorney's recommendation. In previous discussion with Fluth, Koropchak had requested a
proposal from Pope. No proposal from Pope Architect was available at the July 18 lIRA
meeting. Koropchak noted the project could not start or the TIf Plan be approved until after
approval of thc inspection report by the HRA and Council.
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IN LIEU OF TIMING AND SUBJECT TO SUBMISSION OF A PROPOSAL fROM
POPE ARCHITECT, BRAD BARGER MADE A MOTION TO HIRE POPE ARCHITECT
FOR INSPECTION SERVICES WITH 1'1 IE DEVELOPER PAYING FULL COSTS AND
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HRA Special Meeting Minutes - 07/18/05
POPE ARCHITECT ACCEPTABLE TO TIlE liRA ATTORNEY. IF NOT
ACCEPTABLE TO THE HRA ATTORNEY TO PROCEED WITH HIRING LHE. BILL
FAIR SECONDED THE MOTION AND WITH NO FURTHER DISCUSSION, THE
MOTION CARRIED.
4. Other B llsiness
Koropchak informed the commissioners that checking with the Cham her Ofllce prior to further
investigation of the reported vacant Preferred Title Building owned by Kevin Ilcaton, the
Cham bel' said Preferred Title was closed for a few days of vacation and is up and running. The
Chamber suggested they put some plants in the window to give the appearance they are open
for business.
Koropchak noted a letter of no interest to purchase the Oino's building was mailed to the
Swieeichowski's and a follow-up letter mailed to all Block 35 property owners.
Next I-IRA meeting - Wednesday, August 3, 2005.
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Adjournment.
BILL FAIR MADE A MOTION TO ADJOURN THE HRA SPECIAL MEETING. BRAD
BARGER SECONDED THE MOTION AND WITH NO FURTHER BUSINESS, THE
MEETING ADJOURNED AT 6:45 P.M.
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lIRA Vice Chair
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