HRA Minutes 08-29-2005 Special
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MINUTES OF SPECIAL MEETING
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Monday, August 29, 2005 - 6:00 p.m.
505 Walnut Street - West Prairie Room
Commissioners Present:
Chair D~1frin Lahr, Vice Chair Dan Frie, Steve Andrews, and Brad
Barger.
Commissioners Absent:
Bill Fair.
Council Liaison Absent:
Wayne Mayer.
StatT Present: Ollie Koropchak.
1 . Call to Order.
Chair Lahr called the special HRA meeting to order at 6:05 p.m. declaring a quorum.
2.
Public Hearing on the Business Subsidv Agreement.
Koropchak noted the public hearing notice appeared in the local newspaper satisfying the
requirements of the amended Business Subsidy Act by the Legislators during the special
session. The Business Subsidy Agreement between the HRA and Rocky Mtn Group LLC is
located in Section 3.8 ofthe Purchase and Redevelopment Contract and outlines the number of
retained job and wage-level goals and the number of new job and wage-level goals, reporting
requirements, and remedies. On August 22, 2005, the City Council adopted a resolution
approving the Business Subsidy Agreement between the HRA and Rocky Mtn Group, LLC
subject to HRA approval of the Purchase and Redevelopment Contract.
Chair Lahr opened the public hearing for comments or questions. Hearing none, the public
hearing on the Business Subsidy Agreement was closed.
Continued Public llearin~ on the Sale of Land.
Chair Lahr continued the public hearing on the sale of land. The public hearing was opened on
the August 16,2005, and continued to August 29,2005, for consistency with the business
subsidy agreement public hearing and consideration to approve of Purchase and
Redevelopment Contract. Unlike a City, the lIRA must hold a public hearing on the sale of
land. The public hearing notice appeared in the local newspaper on August 4, 2005, meeting
the requirements t.Jr public notice. The 1 IRA plans to convey 8.6 acres of land to Rocky Mtn
Group 1,LC according to the terms in ARTICLE III ofthe Purchase and Redevelopment
Contract.
HRA Minutes - 08/29/05
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Ilearing no comments or questions, Chair Lahr closed the puhlic hearing on the sale of land.
Consideration to ado t a rcsolution a rovin Purchase and Redevclo ment Contract bctwcen
the Housin!2: and Redevelopment Authoritv and Rocky Mtn Group, LLC.
Koropchak noted the changcs makc to the Contract at the August 16 meeting and the changes
made in accordance to the attached lettcr from Chairman Lahr stating his recommendation that
the HRA remove the dirt pile at the HRA cost; and provide a rough graded site as per the June
22nd offer to Dahlheimer's. These changes were in bold print and underlined. Koropchak
verified that the substantially complete construction date fiJf minimum improvements was May
I, 2006, not 2007, and the redeveloper since has requested it bc changed to May 31, 2006.
The proposed closing date no later than Septemher 20, 2005, they requested the 19th. The
assessment agreement states minimum market value on the property of $2,900,000 as of
January 2, 2006. A copy of a letter from Mr. Streeter to Mr. Lahr was distributed to thc
comr111SSlOners.
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This biggest change occurred in Section 3.6 Soils, Environmental Conditions, Grading. It was
suggested on August 16th that the HRA removc thc stockpile estimated at $27,000 and the
redeveloper complete the general site grading estimated at $20,000 at their cost with the use of
excess sand from another city site at an amount and value determined by WSB, Inc. The
Office of the lIRA received the hids from Nelson Buildcrs on August 17 with the following
estimates: Rough grade reimbursement by City $45,000 and rough grade reimbursement by
redeveloper $98,000. Following the recommendation of the HRA Chair, the Contract Section
3.6 (b) was changed to read:
" Prior to closing, the authority will undertake (i) removal of the existing stockpile of dirt
located on the redevelopment property, at no additional cost to redeveloper (the cost
of which the authority will reimburse from the Tax Increment through the lnterfund
Loan: and (ii) General grading of the redevelopment property at no additional cost to
redeveloper (such cost being included in the purchase price). For purpose of this
section, the term "Gcneral Grading" means: stripping top soil per boring logs; exporting
excess topsoil off site to an area designated by City's consulting engineer WSB &
Associates, Inc.; cutting existing high areas and filling low areas with existing suitahle
material (but assuming no import of material from off-site): all according to plans
approved hy WSB. General grading docs not include additional till work described in
paragraph (c) below."
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(c) "After closing, redeveloper may transport "excess sand" from a city-owned site
adjacent to the redevelopment property, for use as additional till material for the
redevelopment property. The term "excess sand" means any amount of sand not
needed by the city for other purposes, as determined by WSB. Redeveloper must pay
costs of transporting the sand, but will not be charged any other fee for the purchase of
sand."
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HRA Minutes - 08/29/05
Section 3.7 "In addition, the authority will pay an estimated amount of$27,300 to
remove the dirt stockpile on the redevelopment property under section 3.6 (c), which
amount represents an additional advance of funds for the benefit of the redeveloper."
Dollar amounts were adjusted accordingly. Chair Lahr noted the June 22nd oifer included a
general site grading and no one at the meeting mentioned the stockpile was located on the
selected site. Lahr felt the gap of $15,000, the difference between the amount in the budget for
grading ofthe 120-acre site and the estimated cost for the general grading and removal of the
stockpile, was not an amount to hold up the project for a long standing Monticello company
and good neighbor. Koropchak noted because the excess sand at no cost to the redeveloper
and the cost to remove the stockpile were not included in the June 22nd offer, she felt it was not
the tax payers responsibility to pay the $27,300 for removal orthe stockpile and had suggested
to Lahr on the phone a 50/50 split in the cost. The HRA agreed city staff and the consultants
had worked in good htith to move the project along. Mr. Streeter noted the appreciation of the
Dahlheimer's and the Ryan Company ofthe HRA Chair's willingness to expedite the project
and suggested the motion be subject to modification or clarification of the grading process.
Koropchak noted the resolution allows for the Chair and Executive Director to make
modifications that do not alter the substance of the transaction.
With no major modifications to the third draft of the Contract as presented, BRAD BARGER
MADE A MOTION TO ADOPT A RESOLUTION APPROVING THE PURCl-IASE
AND REDEVELOPMENT CONTRACT BETWEEN THE HRA AND ROCKY MTN
GROUP LLC. DAN FRIE SECONDED TlIE MOTION AND WITH NO FURTHER
DISCUSSION, THE MOTION CARRIED.
3.
Other Business:
The HRA commissioners were given an invitation to join the IDC on September 6, 2005, at
7:00 a.m. to celebrate the first ever city-owned industrial park. Meet at County Road 39
West and Chelsea Road. The Times and WSB are invited.
It was noted that a meeting is scheduled for September 1, 9-10 a.m. between staff, H RA
Attorney Bubul, and Financial Adviser Mark Ruff to discuss the possible merger of the
lIRA/EDA/IDC.
Next lIRA meeting - Wednesday, September 7, 2005.
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4.
Adjournment.
HRA Minutes - 08/29/05
The HRA special meeting adjourned at 6:45 p.m. by a consensus of its members.
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Ollie Koropchak, HRA Executive Director
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