HRA Minutes 05-01-2002
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MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, May 1,2002 - 6:()() p.m.
505 Walnut Street - Bridge Room
Comm i ssi oners Presen t:
Chair Brad Barger, Vice Chair Steve Andrews, Dan-in Lahr, Dan
Frie, and Bill Fair,
Council Liaison Present:
Brian Stumpf.
Staff Present: Riek Wolfsteller and Ollie Koropchak.
Guests: Steve Johnson, Kevin Heaton, and Kathy Froslie, Block 52. Mike Cyr, Front
Poreh Assoeiates.
I . Call to Order.
Chair Barger called the HRA meeting to order at 6:00 p.m.
2.
Consideration to approve the April 3, 2002 HRA minutes.
STEVE ANDREWS MADE A MOTION TO APPROVE THE liRA MINUTES OF
APRIL 3, 2002. DAN HUE SECONDED THE MOTION. ABSENT FROM THE
APRIL MEETINCL FAIR ASKED "IF MCP STOOD FOR MONTICELLO
COMMlJNITY PARTNERS?" WITH NO FURTHER QUESTIONS, CORRECTIONS,
OR ADDITIONS, THE MOTION CARRIED UNANIMOUSL Y.
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Consideration of adding or removing items from the al2.enda.
Add under 4.5: Consideration to approve assigning the Contract f(Jr Private Development
hy and among Front Porch Associates, the liRA, and the City to First National Bank of
Elk River.
4. Consent Agenda.
A. Consideration to approve amending the Contraet for Private Redevelopment
amonu, the liRA. Front Porch Associates, and the City or Monticello.
Koropchak noted the all1cndments include language relating to the conveyance or land to
Big Lake Lumher. not Front Porch Associates, and definition of the closing date. The
City Council approved the amendments on April 22,2002. In review of the Agreement
hetween Front Porch and Big L"ake Lumher, the BRA Attorney suggested Front Porch.
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liRA Minutes - 5/1102
Big Lake Lumber. First National Bank of Elk River, liRA Attorney, and Koropchak 111eet
to review the agreement rclativc to certain concerns.
DAN fRIE MADE A MOTION TO APPROVE AMENDING TilE CONTRACT FOR
PRIVATE DEVELOPMENT BY AND AMONG FRONT PORCII ASSOCIATES LTD,
TilE I-IRA. AND TilE CITY SUBJECr TO A MEETINCi TO CLARIFY THE TERMS
AND CONDITIONS WITHIN THE AGREEMENT BETWEEN FRONT PORCII AND
BIG LAKE LUMBER. BILL fAIR SECONDED TIlE MOTION AND WITH NO
FURTHER DISCUSSION, THE MOTION CARRIED UNANIMOUSL Y.
4.5 Considcration to approve assignin!2: the Contract f()r Privatc Development hy and among
Front Porch Assoeiates, LTD, the lIRA and the City to First National Bank of Elk River.
The Assignmcnt of the Contract for Private Dcvelopment was prepared by First National
Bank of Elk River and exccutcd hy Greg Holten. HRA Attorney Greenswcig reviewed
the Assignmcnt and had no concerns. With the Contract being assigned to First National
Bank. the pay-as-you-go installments are paid to the Bank, not Front Porch. 'fhe City
Council will consider assigning thc Contract for Private Devclopment at the May 13,
2002, Council mccting.
BILL FAIR MADE A MOTION TO APPROVE ASSIGNING TilE CONTRACT FOR
PRIVATE DEVELOPMENT BY AND AMONG FRONT PORCH ASSOCIArES.
L TO, TIlE liRA. AND THE CITY T'O FIRST NAT'IONAL BANK OF ELK RIVER
SUBJECT TO A MEETING TO CLARIFY TIlE TERMS AND CONDITIONS
WITHIN THE AGREEMENT BE'fWEEN FRONT PORCH AND BIG LAKI':
LUMBER. DARRIN LAHR SECONDED THE MOTION AND WITH NO FURTHER
DISCUSSION, THI~ MOTION PASSED UNANIMOUSLY.
5.
Consideration to hear progress by Steve Johnson for potential redevelopment of Block
52.
Koropchak inrormedllRA members of her conversations with froslie and Springborg
following the April lIRA meeting and of the meetings held between O'Neill, Johnson, a
potential tenant, and herself relative to Block 52.
Steve Johnson inf'l1l'll1ed memhers, he and Kevin I Jcaton own the southerly portion or
Block 52 fron1 Pine Street to Poirer, with the exception of the HRA lot, and are willing to
reinvest and redevelop in Block 52. With Block 52 being an identified area for
redevelopmcnt within the Rcvitalization Plan, Johnson submitted a copy of a proposal
prepared by the McComb Group, LTD, and asked the HRA to participate with the costs
of the analysis. The proposal, to conduct a development feasibility analysis for Block 52.
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HRA Minutes - 5/1102
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outlined of the objectives, work tasks and meetings, budget. and report purpose. Johnson
explained the analysis would detennine building square footage; property values by
building value versus income vaIue; project size to support debt; etc. froslie indicated
her first option was a buy-out with consideration to rent or partner.
fair asked Johnson and Heaton as to their contribution toward the $15,500 budget
amount for the analysis. Johnson and Heaton both agreed to contribute $2,000 each.
Lahr followed stating once we know the market, square tl10tage, parking, and kind of
businesses; how are the tenants found or who finds the tenants? The two work tasks to
determine the amount ofTIF created and to determine the eligible TIF expenditures are
dupl ication of work completed by the HRA staff and its financiaI consuItant stated
members. Andrews noted normally, the I-IRA works with developers who know the
market, they come to the liRA stating this is what fits, and the HRA is not part of the
marketing analysis. Additionally, Andrews noted that if the HRA participates, the
completed report must be availabIe for use hy the community and not the exclusive
rights of the developers, lenders, and other investors. fair was in favor of a master plan
to redevelop the entire block.
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BILL FAIR MADE A MOTION THAT STEVE JOlINSON AND KEVIN HEATON
CONTRIBUTE $2,000 EACH AND THE HRA CONTRIBUTE $11,500 Of TilE NOT
TO EXCEED $15.500 BUDGET FOR THE MCCOMB GROUP TO CONDUCr A
DEVELOPMENT FEASIBILITY ANALYSIS FOR BLOCK 52 OF MONTICELLO
WITH TI-IE COMPLE"rHD ANALYSIS A PUBLIC DOCUMENT. STEVE
ANDREWS SECONDED THE MOTION. Discussion centered around the duplication
of TIF anaIysis, Brad Barger made a rnotion to amend the motion deleting the TIF
analysis tasks and $1,300. Bill Fair seconded the amendmcnt. After further discussion,
Barger and Fair withdrew the motion to amend. THE MOTION CARRIED
lJNANIMOUSL Y.
Asked how long to complete the analysis, Johnson responded about 90 days. The HRA
members requested a shorter completion time.
6. Consideration to authorize payment of April BRA bills.
The I IRA discussed the need to shop around for a financial consultant or to increase the
Tlf deposit of $5,000. Some members felt to increase the deposit would scare off some
developers. Koropchak noted administrative costs which exceed $5.000 are billed the
developer per the Contract for Private Development. Only if a project does not proceed
and no deposit was made. is the HRA out any dollars. DAN FRIE MADE A MOTION
AlJll-IORlZlNC PA YMFNT OF THE APRIL I IRA BILLS. SECONDED BY STEVE
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HRA Minutes - 5/1/02
ANDREWS AND WIlli NO FURTHER DISCUSSION. TI-IE MOTION CARRIED
UNANIMOUSLY.
7.
Consideration of J':xecutive Director's Report.
In addition to the written report, Koropchak intllrmed members that a for sale or lease
sign has been posted at Lake Tool and according to the Wright County Auditor's Office,
the second half of the 200 I property taxes are delinquent. Additionally IRTI has heen
invoiced f'()r $1,514, the difference between the 11 I" deposit and the total administrati ve
costs. Lastly, Koropchak noted that lJMC inJ'(mlled her that it is highly unlikely they will
renlain in Corcoran. Other communities now heing looked at are Rockford, Rogers,
Hanover. and CreenstieId. Barger announced he would golf as a guest of the Marketing
Committee and Frie was golfing with his company.
8. Committee Reports.
None.
9.
Other Business.
Mike Cyr. front Porch Associates, requested an aclditional $5,000 in TIF assistance. lhe
aclditional dollars to recover some of the developer's cost to clear the title oi'thc vacated
Vine Street public right-of-way. As you recall, there was an encroachment on the Vine
Street puhlic right~of-way. The City Council was wiIIing to proceed with an ejectment
process and reduced the land price from $83,000+ to $75,000. The completion time and
the outcome of the ejectment process could not be guaranteed by the City. The developer
proceeded to negotiate with the encroacher and to obtain a quit claim with no direction
fronl the Council to pay. The liRA lelt perhaps there was a lot of speculation and did
not consider the request.
10.
Adjournment.
BILL FAIR MADE A MOTION TO ADJOURN THE MA Y HRA MEETING. SECONDI':D BY
DAN FRIE AND WITH NO FURTIIER BUSINESS. THE I1RA MEETING ADJOURNED AT
8:00 P.M.
~ \<c)) 0 Q-9~_
Ollie Koropchak, Re~
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