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HRA Minutes 09-04-2002 . . . MINUTES MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY Wednesday, September 4, 2002 - 6:00 p.m. 505 Walnut Street - Bridge Room Commissioners Present: Chair Brad Barger, Vice Chair Steve Andrews, Darrin Lahr, Dan Frie, Bill Fair and Council Liaison Brian Stumpf. Stall: Rick Wolfsteller, Ollie Koropchak, and Lori Kraemer 1. Call to Order. Chair Barger ealled the meeting to order at 6:00 p.m. 2. Consideration to approve the August 7. 2002, lIRA minutes. .., j. 4. 5. A MOTION WAS MADE BY DARRIN LAHR TO APPROVE THE MINUTES OF THE AUGUST 7, 2002 liRA MEETING. STEVE ANDREWS SECONDED THE MOTION. MOTION CARRIED. A MOTION WAS MADE BY DARRIN LAHR TO APPROVE THE MINUTES OF THE WORKSHOP MEETING ON AUGUST 7, 2002 WITH THE DELETION OF THE LAST LINE OF THE MINUTES REGARDING TAX INCREMENT. STEVE ANDREWS SECONDED THE MOTION. MOTION CARRIED WITH CORRECTION. Consideration of adding or removing items from the agenda. None Consent AQenda. A. Consideration to adopt a resolution approving the first amendment to the Contract for Private Redevelopment between the HRA, the City, and Presbyterian lIomes llousing and Assisted Living, Inc. Recommendation: To approve the first amendment to the Contract for Private Redevelopment between the HRA, the City and Presbyterian Homes Housing and Assisted Living, Inc. A McrrIoN WAS MADE BY STEVE ANDREWS TO APPROVE THE CONSENT AGENDA AS WRITTEN. BILL l'AIR SECONDED THE MOTION. MOTION CARRIED UNANIMOUSL Y. Consideration to hear an update on the proQress for redevelopment of a pOliion of Block 52. Ollie Koropchak advised that Steve Johnson was not prepared at this time to come back to the HRA with an update regarding the redevelopment project, advising that he had noted at the previous meeting there was a chance he would not be ready at this time. . . . HR^ Minutes - 09/04/02 Koropchak provided information regarding the value, which the assessor had valued lower, which theHRA had expected. She provided TIF projections from Mark Ruff showing $565,000 NPV. which was less than half of what the applicant was projecting. The HRA discussed a possible assessment agreement but Koropchak advised that a portion may be pay as you go. They discussed an option of the H RA providing all the increment that the project accrucs for the life of the district. Koropchak advised that excess increment from the district is what was used for Barry Fluth's project ($75,000) for parking, and $185,000 for land acquisition/demolition. Koropchak asked if the HRA had interest in downtown parking improvements for the public which in turn would be of value to businesses there. She also discussed underground parking on River Street and wondered if that would encourage other businesses down in that area to do something more with their existing properties. Darrin Lahr was uncomfortable with the parking deficit. Barger asked if they were going by what other cities demanded f()r parking and if the City's requirements are that much different hom other cities. It was also stated that redevelopment in this area was to follow the recommendation of the North Anchor. They discussed that there is actually a lot of parking in the district, and possibly another study should be done to determine actually how much there is and how much is needed. It was also recommended that proper signage be placed downtown which would help direct people where to park, encouraging people to walk. Koropchak stated she would figure out per parking space what the lIRA paid on the Amoco site. They discussed also that parking comes up as an issue on almost every development/redevelopment and possibly the Council should look into this with a task force. Brian Stumpf stated that the Council is looking at a task force to work on the comp plan and possibly this could be in conjunction with that. The HRA discussed possibly of Ie ring them the tax increment that the project would generate, along with up to $150,000 for parking if needed. Koropchak also cautioned that applicants come to the HRA to get TIF assistance first and then when the proposed project gets to the Planning Commission after site review, it has changed from what was initially proposed to the HRA, ending up with a project that is not the same as what was approved by the lIRA. Koropchak felt that the HRA should see the final building plans. Fair felt it should be an BRA pol icy that this comes back to the lIRA after site plan review. There was no further discussion. 6. Consideration to approve changes to the Contract for Private Redevelopment between the HRA. the Citv. and the Central Minnesota Housing Partnership. Koropchak advised that the acquisition costs to acquire the properties and the overall costs of the project had increased. She also provided the cash flows based on the values, stating Ruff included an inflation of2%, using JO/o interest, and by the life of the district 2 . . . HRA Minutes - 09/04/02 the liRA could collect $17] ,000. Koropchak stated she was uncomfiJrtable with the project as she would have liked to have seen the finished project, stating CMHP had switched developers. Rick Wolfsteller stated that he had offered up to $33,000 for thc project to help with the increased cost of the project and this would come from either reducing the price of the land or asking the H RA to use tax increment. A MOTION WAS MADE BY DARRIN LAHR TO APPROVE CIIANGES TO THE CONTRACT FOR PRIVATE REDEVELOPMENT BETWEEN TIlE HRA, THE CITY, AND CMHP I3Y INCREASING THE ACQUISITION ASSISTANCE FROM $125,000 TO $]58,000 NPV. BlLL FAIR SECONDED THE MOTION. MOTION CARRIED lJNANIMOUSLY. 7. Consideration to authorize paymcnt of BRA bills. A MOTION WAS MADE BY HILL FAIR TO AUTHORIZE PAYMENT OF THE HRA BILLS. STEVE ANDREWS SECONDED THE MOTION. MOTION CARRIED UNANIMOUSL Y. 8. Consideration of Executive Director's Report. Koropchak provided the executive director's report adding that Twin Cities Die Casting will he on next month's agenda regarding the Fair Housing Act and the need for discussion rcgarding discrimination. Koropchak also advised that they had not met their creation of 85 new jobs requirement. She stated she will be asking the City Council to extend the grant agreement for 2 years from the date of the occupancy permit. Koropchak also advised that bceause this was Federal grant money, TCDC needed to provide 51 % low to moderate income jobs. Koropehak also advised that the UMC ground breaking will not be on 9/13/02 due to bank financing not being complete. 9. Committee Reports. None 10. Other Business. None I ]. Adjournment. A MOTION WAS MADE BY BILL FAIR TO ADJOURN TIlE MEETING AT 7:30 P.M. STEVE ANDREWS SECONDED THE MOTION. MOTION CARRIED UNANIMOUSL Y. !~~ liRA Ch; ir ~- ____r...'. 3