HRA Minutes 12-05-2001
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MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, December 5, 2001 - Meeting - 7:00 p.m.
505 Walnut Street - Bridge Room
Commissioners:
Chair Dan frie, Vice Chair Brad Barger, Steve Andrews, Darrin Lahr, Bob
Murray and Council Liaison Brian Stumpf
Staff:
Rick Wolfsteller, Ollie Koropchak, JerrO'Neill and Lori Kracmer
Guests:
Clint Herbst, City Council
Planning Commission members Roy Popilck, Dick Frie, Robbie Smith
and Rod Dragsten
Mike Benedetto, School District #882 Supt.
Lisa Graphensteen and Sheri Harris, CMHP
Barry fluth, Masters 5th Avenue
1. Call to Order.
Chair Frie called the meeting to order at 7:05 p.m.
2.
Consideration to approve the November 14.2001 HRA minutes.
A MOTION WAS MADE BY BRAD BARGER TO APPROVE TilE MINUTES OF
THE NOVEMBER 14,2001 MFETINCi. BOB MURRAY SECONDI]) TilE MOTION.
Motion carried unanimously.
3. Consideration of addi ng or removing items from the agenda.
Koropchak advised that Barry fluth of Masters yh Avenue requested to update the liRA
regarding the former Amoco site. This was added as item 6.5 on the agenda.
Koropchak added commission term appointments as item 11.
4. Consent Agenda. None
5. Presentation: Monticello Ilousirw: Study and Wright County IIousinl! Analysis. Central
Minnesota Ilousing Partnership, Inc.
Koropchak advised the members and guests that some months ago thc I IRA authorized
participation in a Wright County Housing Analysis Study at a cost of $500. Thc study
conducted by CMl-IP was coordinated through the Wright County Economic
Development Partnership. The BRA authorized the study for the purpose to update the
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HRA Minutes - 12/05/01
housing stock data or Monticello based on the latest building permit information and
demographic data (population and household, age distribution, household income and
employrnent). The study and data also meets some requirements set forth in the MN
TED grants to the City.
Lisa Graphensteen, CMHP, advised the HRA that they are a non-profit organization who
work in technical assistance to communities to determine what the affordable housing
needs are in their community. She advised that the study area included the City,
Monticello Township and a portion of Silver Creek Township.
Graphensteen advised Monticello School Supt. Benedetto that the data was current for
2000. Dick Frie, Planning Commission Chair, askcd that if Monticello is currently
second to St. Michael, could she compare that to what it would be in 2005 and she stated
the St. Michael area has nearly 10.000 more than Monticello, advising that this includes
scveral other cities and townships around S1. Michael. Lisa also stated that the
community actually dictates what may happen such as an industry moving in. closing.
etc.
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Benedetto asked ror the "adult" median age of households and Graphensteen stated she
did not have that information. however, O'Neill advised that he would gct this
information to him. Graphcnsteen stated that Monticcllo was fourth in the statc for
owncr/occupancy increascs. Steve Andrcws questioned whether the City should stccr to
make sure there are the appropriate types of housing availablc and O'Neill stated the land
use plan is in place for this purpose. O'NeiII also advised that the City Council is looking
for higher-cnd housing and thc Planning Commission is currently working on the land
usc plan. Mcdian sale prices are in the middle for Monticello and Wright County has thc
highest median sales priced homes outside ofthe Metro area according to the study. This
does not includc new construction, only existing homes. Lisa also providcd information
on rccommended units, stating the study is not looking to dramatically change housing
stocks. and that this is a recommended plan for over the next 5 years. She did state the
numbers in the study are conservative. Regarding aftcmlablc housing. she explained that
6 (YYcI of the area media income is approximately $31,380 for a 2 person household and
$44.820 for a 4 person household. This meets the needs of a combination of existing
homes as well as incoming. Dick Frie asked if this infonnation could be available 1'<J1' the
Planning Commission as they plan to update their comp plan. O'Neill asked about the
prograrns that some cities have for older homes going up for sale putting in place codes
that homes need to meet bctc)t'e they can be sold. The city would have funds set aside to
purchase these h0111cS and then renovate as part of thc rehab and redeveloprnent
recommendations. Lisa stated there are monies available for cities to do this.
Dan Frie statcd that Monticello has some barriers to overcome such as 1-94. the river to
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HRA Minutes - 12/05/01
the north, land owned by NSP that cannot be developed, the YMCA park that cannot be
developed. as well as problems with the township. compared to surrounding cities.
Lisa eXplained a study that compared heavy rental as in relation to crime and found that
there was no relationship f(llmd. They asked Benedetto what he has seen regarding
"problem kids" and he advised that there are about 34 problem kids in the middle school
as comparcd to St. Michael who have only four. He did statc that there are approximately
850 studcnts in the Middle School and St. Miehael is much less than that. Benedetto also
stated thcy see this type of problem more with apartments, startcr homes, and mobile
homcs.
Sheri Harris, CMHP, then addrcsscd thc members with information on a housing plan and
provided some resourees. with thcir goal being to help coordinate a plan t(H the City.
They will also act as a non-profit developer if no other can be found. One program is for
assistance up to $15.000 in gap financing/scattered site program. stating this money is
available right now for 16 counties. Also I-1AF assistance which is down
payment/closing cost assistance which could be in addition to the $15,000 gap assistance.
The cap is $120,000 for total house sale.
Eel [0. a down payment funding program. is also available. CASA is a program that
offcrs 5.95% mortgage interest rates. Sheri adviscd that CMHP also devclops multi-
fami Iy housing and provided a list of 200 1 projccts which have already been fundcd. Shc
stated the next funding round is February and July of 2002, stating thcrc is a combination
of state and federal funds available. Scvcral things that they look at for in awarding
funding are things like the waiving of city fees, local contributions. as wcll as need in the
area.
Sheri updated the HRA on thc projcct on yh/6th Streets and Minncsota Street, stating
there will be approximatcly ] 0 owner/occupied units as a scattered housing program and
the project is moving ahcad. Great deal of interest from thc GMHF. They did submit thc
information and the board will be looking at it next week. MHF ^ is out of the picturc.
GMHF would potentially provide additional gap financing as well. There havc becn
conversations with all homcowners who seem to be rcccptive as well. Sheri will have
more information at the January mccting. She is anticipating that thc HRA would be
rcady to start the TIF district process.
Update by Barrv Fluth ref.!,ardinl! the former Amoco sitc and the reClUest for additional
assistance.
Barry Fluth. Masters 5th Avenue, approachcd thc HRA with a final plan of their project
which includes a restaurant. apartments and carriagc houses. stating they arc closc to
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HRA Minutes - 12/05/01
having agreements with the current property owners and they do have an easement
agreement. The main change from their previous plan is that they purchased the City lot
and would like to extend the project (parking) al1 the way behind the buildings. Brian
Stumpf asked what that would do to parking there with rentals which are above several of
those buildings and they discussed the use of joint parking. Fluth stated it will actually
provide additional parking, stating the parking is actually being extended but the
buildings would remain the same. Part of the agreement would be there would be no
longer access between the buildings and no parking on the vacant lot. They will have an
agreement with the attorneys that they will have access between the properties.
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Koropchak stated that previous approval was for an amount up to $185,000 to acquire
and demolish the Amoco site. Additionally, the HRA offered assist for up to $45,000
which would cover the Paulson, Hammond and Koppy properties for development of off-
site parking. In addition, they offered up to $124,000 assistance for demolition of the
attorney buildings. Koropchak noted that Pluth was to have the agreements with all
property owners by November 1, but is not quite there at this time. The deadline for
demolition is 3/31/02. She noted this is pay-as-you-go assistance and advised the
irnportance of expending the monies by 6/1 /02. Fluth noted there is a signed lease from
the restaurant which takes up 2/3 of the retai I space. IIoping to begin
dernol ition/construction right after January 1 and the restaurant to be in place by 6/1 /02.
Fluth is asking for $30,000 in assistance to acquire the additional two lots for parking.
Frie stated the I IRA could use $75,000 of the $90,000 initially allotted, but also noted
that this would be for one project versus two. Fluth also advised that they do not need all
the parking for their project alone and would not be opposed to the attorneys sharing
parking, as long as the City is helping to share in the cost. Their plan is to leave the
existing garage in place which would take up two parking spaces, but the current
apartment tenants do use it to park in. It was noted that possibly if there were to be a
change in ownership the garage could be moved at that time. Koropchak stated that in
rcality there would be 4 spaces lost with the garage not being moved as you could not
park in front either. It was noted that the garage is remodeled and not in disrepair.
O'Neill advised that there will be a possible deficiency in parking and they would have to
bring this back to Council. Housekeeping item.
1\ MOllON WAS MADE BY BRAD BARGER TO PRO-RATE PARKINCJ SPACES
BASED ON THE PREVIOUS MOTION ON THE PROJECT FOR PARKING; NOT TO
EXCI':ED $30,000. DARRIN LAHR SECONDED TI IE MOTION. Motion carried
unanimously.
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Koropchak advised that the private rcdevelopment contract will need to be updated.
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I-IRA Minutes - 12/05/01
7.
Review the impact of the tax ineremcnt revenues l2:iven the reduction of class rates
compared to the increase in land costs for industrial development.
Koropehak advised that a high-tech manufacturing company working through a general
contractor has visited Monticello previously. Prior to the reduction in class rate, the
company was oiTered 6 acres of land for $1 with some site improvement costs covered.
The project consisted of a 60,000 sq. ft. huilding. Given the changes enacted by
Legislators, the general contractor contacted Koropchak fix the change in the level of TIF
assistance.
Working with Paul Bilotta on behalf of Chadwick/Bowers, plans are for the Council to
order a feasibility study for infrastructure development and request annexation of 60 acres
at the December 10 Council meeting. This at least will provide a diversity of land
owners. Chadwick has hired CB Richard Ellis to market the property; however, no land
price has heen estahlished.
At the 2002 City Hudget workshop, the annual $75,000 City contribution for industrial
development was deferred. Three reasons: tight budget no plans fi)J' reserved lnonies,
and no continued matching commitment by the liRA. O'Neill mentioned the availability
of the City/Remmele commercial property as a possible land trade. The City fund
halance is $265,000 and the I-IRA fund balance is approximately $300,000. Additionally,
in concept the I-IRA eannarked the TIF revenues from District 5 (Construction 5) and VI
(Raindanee) for industrial development. Thcse districts were created prior to the pooling
restrictions. Initially, Koropchak believed the intent was for the HRA or City to acquire
land f()J' industria] development.
An offer of $3,000,000 for the 180 acres ($16,666 per sq. ft.) of undeveloped Chadwick
property was rejected by the Council. Koropchak asked what is the followup plan of the
City and the liRA? The IDC and Marketing Committee will address the same question.
The liRA members discLlssed the Remmele property possibly being re-zoned to Industrial
versus eOlnmercial. There was no action required.
l)arrin Lahr asked to be informed if the Planning Commission were to hold a work
session regarding the Comprehensive Plan.
8. Considcration of authorizing: payment of November HRA bi\ls.
A MOTION WAS MADE BY BRAD HARGER TO AUTIIORIZE PAYMENT OF TilE
NOVEMBER HRA BILJ,S. S'fEVE ANDREWS SECONDED THE MOTION. Motion
carried unanimously.
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IIR^ Minutes - 12/05/01
9.
Executive Directions report.
Koropchak provided the report adding that the Front Street/Hans Hagen project is moving
forward and that Hans Hagen has accepted the I-lRA offer of $300,000 for finished pad
sites. WSB wiI1 do the RFP and work with their engineers so it is ready in the Spring.
Koropchak will meet with the attorney and get the private redevelopment contract signed.
Chair Frie was asked to initial extending the agreement.
Mike Cyr's project is still in progress, stated he may need to add 4 to 5 more units as his
bids are coming in higher than initially expected.
Block 52 letter is being written and Koropchak asked if this letter should be sent to all
owners on Block 52 and the members concurred. Included in the cover letter is the
option for rather than a cash buyout. the opportunity to re-invest and enter into a
partnership or condo it as a partial owner.
Not much f()r industrial leads - but there have been two leads on the Midwest Graphics
buikling.
10.
Marketing Committee - meets Friday, 12/7/01.
11. Other Business
Koropchak advised that Bob Murray's term is up in Decelllber. Bob stated he would like
to have someone else step into his position due to the demands of his schedule.
Koropchak was advised to advertise. The members will review the applications and work
toward appointing someone in February.
Koropchak and the members thanked Bob for his time on the board.
12. Adiournment.
A MOTION WAS MADE BY BOB MURRAY TO ADJOURN TIlE MEETING AT
9:30 PM. BRAD BARGER SECONDED THE MOTION. Motion carried unanimously.
CffJr'-;7~
1?t._~lvt.e-
I-IRA Chair
~r~h) ......
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