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HRA Minutes 04-03-2002 . . . MINUTES MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY Wednesday, April 3, 2002 - 7:00 p.m. 505 Walnut Street - Bridge Room Commissioners: Chair Dan Frie, Vice Chair Brad Barger, Steve Andrews, Darrin Lahr, and Council Liaison Brian Stumpf. Absent: Bill Fair S taiI Rick Wolfsteller, Ollie Koropchak, and Lori Kraemer. 1. Call to Order. Chair frie called the meeting to order at 7 p.m. 2. Consideration to aDDrove the minutes of the March 6, 2002 liRA meeting. A MOTION WAS MADE BY STEVE ANDREWS TO APPROVE THE MINUTES OF TilE MARCIl 6. 2002 liRA MEETING. BRAD BARGER SECONDED THE MO'fION. MOTION CARRIED UNANIMOUSLY. Consideration to approve the minutes of the Special Meeting oi'March 26, 2002. A MUflON WAS MADE BY BRAD BARGER TO APPROVE THE MINUTES OF THE SPECIAL liRA MEETING ON MARCH 26, 2002. STEVE ANDREWS SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 3. Consideration of adding or removing items from the agenda. None 4. Consent Agenda. A. Consideration to approve authorization to enter into the Contract for Private Redevelopment among the HRA, Ilans Hagen llomes, Inc., and the City of Monticello. Recommendation: '1'0 approve authorization to enter into the Contract for Private Redevelopment among the liRA, Hans I-Iagen Homes, Inc. and the City of Monticello. A MOTION WAS MADE BY STEVe ANDREWS TO APPROVE AUTHORIZATION TO ENTER INTO THE CONTRACT FOR PRIVATE REDEVELOPMENT AMONG TIlE lIRA, IIANS HAGEN HOMES, INC., AND TIlE CITY OF MONTICELLO. DARRIN LAHR SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. . . . HRA Minutes - 04/03/02 Koropchak stated that Scott Douglas had asked if the Fire Dept. could use the Carlson house for a test burn. The memhers discussed the possible negative impact this Inay causc. Koropchak advised that the house needs to he down and property cleaned up by August 31, 2002. The HRA members authorized the Fire Dept. to conduct their test burn, although Lahr still felt it would not be good public relations. 5. Consideration of follow-up by Steve Johnson for potential redevelopment within Block 52. Johnson was unavailable for the April meeting. Koropchak advised that at the March liRA meeting, members heard a recap of the individual meetings held with Froslie, Springhorg, Johnson, and Heaton. The cash huyouts for Froslie and Springborg appeared high; however, Koropchak was to investigate replacement costs for Springborg. Johnson and Heaton expressed an interest to develop a partnership for redevelopment of the southerly portion of Block 52 in two phases. The HRA was interested in the project and requested Johnson and I-Icaton work on pursuing potential partners and a consultant and come back to the HRA. Koropchak advised that Johnson and Ileaton are still progressing and working with McCombs. Johnson advised Koropchak that they would he back in May with numbers for the HRA members. Koropchak also pointed out some other buildings that were similar in value and what they were selling for. 6. Consideration to approvc the election of HRA officers for 2002 and approve the appointment of commissioners to committees. OFFICERS In accordance with the HRA I1ylaws, the chair and vice-chair shall be elected at the annualmecting of the Board of Commissioners from among the Commissioncrs of the Authority and shall hold office for one year or until their successors are elected and qualified. The Secretary-Treasurer shall be appointed at the annual meeting of the Board of Commissioners by the Commissioners. A MOT'ION WAS MADE BY OARRIN LAHR TO NOMINATE AND ELECT BRAD BARGER_ AS CHAIR AND STEVE ANDREWS AS VICE CHAIR OF TilE HRA FOR YEAR 2002, AND APPROVE APPOINTMENT OF RICK WOLFSTELLER AS SECRETARY-TREASURER FOR 2002. DAN FRIE SECONDED lTIE MOTION. MOTION CARRIED UNANIMOUSLY. COMMITTEES 2 . . . HRA Minutes - 04/03/02 The HRA, annually or as need be, appoints a commissioner(s) to various committees. The only committee with By-Laws is the MCP. the others are established for a specific research or purposc. Although the MCP currcnt status is inactive. the MCP Bylaws rcad the various city commissions annually appoint their representative to the MCP Board of Directors. Length of term is thrce years. Andrews was appointed a sceond three-year term beginning February 2001 ending February 2004. The Community Center Advisory Board now operates as an Ordinance of the City and the members are appointed by the City Couneil. Membership guidelines do not require an HRA eOlTIlnissioner; although, the HRA sold the bonds to finance the center. Bob Murray is a member of the Advisory Board. A MOTION WAS MADE BY BRAD BARGER TO APPROVE THE APPOINTMENT OF STEVE ANDREWS FOR REPRESF:NTATIVE TO TilE MCP BOARD, BRAD BARGER AND DARRIN LAHR AS REPRESENTATIVES TO THE MARKE'rING COMMITTEE. DAN FlUE SECONDED TilE MOTION. MOTION CARRIED UNANIMOUSLY. 7. Consideration to review for amending the liRA Business Subsidy Criteria and the I--IRA Bylaws. Koropchak advised that this is an annual housekeeping item and provided a copy of the eriteria and bylaws for the lIRA members to revicw. Also providcd to the HRA was a summary of the TIF proeess and application. Koropchak advised that she did not believe the I IRA has the best process for applications and wondered ifby amcnding that process, would it help developers to be bctter prepared when coming into thc City. Brad Bargcr stated perhaps an outline would help, hut it was stated there is onc provided. Darrin Lahr statcd hc is in t~lvor of the jobs/wages as they arc, but is open to suggestions with regard to thc proccss for application, and stated they may need to research other cities for their process. Koropchak stated shc does have some cxamples she will provide. Stevc Andrews asked if everyone was comfortable with the current meeting time and it was stated that an earlier meeting time would be good. A MOTION WAS MADE BY BRAD BARGER TO AMEND THE liRA BYLAWS BY CHANGING THE RJ.:GULAR MEETING TIME TO 6:00 P.M. DAN FRIE SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. It was further discussed the possibility of cancelling the July 2002 mceting due to the date being one day beforc the 4th of July, mcmber and stajTvacations, etc., pending any urgent matters. and it was decided that they will discuss this as it gets closer. .., -, . . . HRA Minutes - 04/03/02 8. Consideration to review and accent the vear-end financial reports for the I IRA (reneral fund and TIF Fund as prepared bv HRA Treasurer Wolfsteller. Rick Wolfsteller provided the 200] year-cnd financial reports for the liRA General Fund and TIF Fund. I Ie stated he did not get a chance to chcck into local matches/contributions, and he will go back at the cnd of the year to get the actual numbers as thcre could be additional transfers or payments. Feels the general HRA fund is looking good. He did mention that the HRA has already committed $300,000 to be used fcx an industrial park. District 22 showed the HRA's bond and Wolfsteller stated that monies will come out of that district for loan payments, etc., and this number would then be reduced. It was pointed out that thcy will receive $300,000 back from the Hans Hagen project as well. Koropchak stated she compared numbers from the auditors with their numbers and she suggest to close out the Nsr District and transfer to the Remmelc District as therc is a short fall. Koropchak stated closing Marties District and that Suburban will be decertifying in August. Polycast District is to close out and she also thought possibly to decertify Fay Mar, but Mark Ruff suggested to run that another 4 years in case of a short lall in another district. River Mill to close out that soils district. Tappers was decertified but still have deficiencies coming in. Barger asked ifthere were any other districts that would be owing a large amount to the lIRA that Koropehak should notify and she adyised they would he addressing that in the next agenda item. W olfsteller advised of outstanding bond dcbts, etc., and stated that if there is a number stated there it means it still has to be paid out. Koropchak also stated that Ehlers suggested taking the Director's salary out of the administrative fund as that is what it is for. A MOTION WAS MADE BY BRAD BARGER TO ACCEPT TI-IE YEAR-END FINANCIAL REPORTS FOR TIlE HRA GENERAL FUND AND TIF FUND AS PRErARED BY TREASURER WOLf STELLER. DARRIN LAHR SECONDED THE MOTION. MOTION CARRIED UNANIMOUSL Y. 9. Consideration to rcvicw TIF Cash Flow rroiections for TIf District Nos. 1-2, 1-5, 1-6, I -2 I, 1-22. and I -23 as prepared by Mark RulT. Ehlers & Associates. Koropchak advised that Mark RufC Ehlers & Associates, had run cash flow projections for the above named districts. Ruff advised that by selling the bond, in order to retire the debt the HR^ would need to build a 30,000 square foot office building to retire the $2 million debt. I-Ie also advised that there is $ 1.28 million left of the $2.] million, 4 . . . lIRA Minutes - 04/03/02 assuming that the commercial building is built. that would be left to spend by August 2004. Koropchak noted that this may be a goal of the HRA. Koropchak had Glomski run numbers for parking spaces assuming a 30,000 sq. ft. office building. Parking stalls needed - ]38. Ehlers had also provided current estimates and background regarding '1'1 F Districts 2, 5 and 6, without the beginning balance. 'rhis inf(mnatioll was provided to the lIRA. The TIF District 5 debt has been retired, District 2 has a deficit, and District 6 has a debt. 10. Consideration to discuss and set HRA goals for 2002. Koropchak provided a list of questions regarding the year-end report as well as questions on projections, for the HRA to discuss. Koropchak also stated some possible goals the HRA could look at the for the coming year such as the acquisition of Blocks 52, 54 and 36. It was suggested that the HRA apply f()r a Redevelopment or Small Cities Grant. Koropchak advised she felt the HRA should otTer Springborg, Block 52, a lower offer and let him stay in the building for a number of years as she feels that property is crucial. She also stated she felt the I IRA will need to spend surplus dollars in Block 52 for parking, etc. Froslie had contacted Koropchak again asking if the lIRA is going to give her an offer on her property and Koropehak stated she would like an answer to give to Froslie. The HRA discussed having an appraisal done on the Proslie property and then make an offer. They asked Koropehak to check with Fros1ie to see if she has a current appraisal, within the last two years, and can the BRA look at it. Frie stated the liRA should value it by how much income Froslie is getting, how much rent she is generating. They also discussed if Hans Ilagen would be interested in the Fros1ie property. Koropchak also advised of the I IRA applying for grant for redevelopment. Ehlers stated that the state could possibly suggest ideas for the city for a projcct, and they would not neecssarily have to have a project in mind to apply for the grant. Brad Barger and Darrin Lahr felt it was hard to come up with a project and yet it is hard to justify spending large amounts of money with no project in mind. They felt they would rather have a developer determine what kind of project would work. The members decided that they would rather wait until Steve Johnson comes back with a possible project. 5 . . . IIR^ Minutes - 04/03/02 Koropchak stated she will talk to Froslie and let Springborg know the BRA is waiting r()r Steve Johnson's report. 11. Consideration of authorizing payment of March II RA bills. A MOTION WAS MADE BY DARRIN LAI-IR TO AUTlJORIZE PA YMENT OF THE MARCI-I IIRA BILLS. BRAD BARGER SECONDED TIlE MOTION. MOTION CARRIED lJNANIMOUSL Y. 12. Consideration of Executive Dircctor's ReDort. Koropchak provided her report adding that Mike Cyr did not close on thc Ruff property and got an extension on the Grubb property. Still anticipating to move forward. The former Amoco site is now down. She did meet with UMC and looked at the Pfeffcr site, Chadwick site and the Remmele site. UMC seems to like the Pfeffer site and that area. The prospect team will visit on Monday. Koropchak to prepare a request for proposal. She asked the I1RA how important it is to them to be competitive with other cities. Brian Stumpf stated that he would be interestcd in fc)rgiving some of the fces in order to stay competitive. hut could not speak for the entire Council. Production Stamping is coming in with Charlie Pfeffer to talk to city staff on Thursday. 13. Committee ReDorts. Marketing advised that the Chamber is holding a golf tournament on May 16 and Koropchak stated she is planning to invite developers again. 14. Other Business. None 15. Adiournment. A MOTION WAS MADE BY BRAD BARGER TO ADJOURN THE MEETING AT 9 PM. STEVE ANDREWS SECONDED TIlE MOTION. MOTION CARRIED UNAN MOUSL Y. rt1!{~~ 6