HRA Minutes 10-02-2002
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MINUTES
MONTICELLO HOUSING AND RED['~VELOPMENT AUTHORITY
Wednesday, October 2, 2002 - 6:00 p.m.
505 Walnut Street - Bridge Room
Commissioners:
Chair Brad Barger, Viee Chair Steve Andrews, Darrin Lahr, Dan Frie,
Bill Fair and Council Liaison Brian Stumpf.
Riek Wolfsteller
Ollie Koropehak and Lori Kraemer
Absent:
Staff:
I . Call to Order.
Chair Barger called the meeting to order at 6:00 p.m.
2. Consideration to approve the September 4, 2002. HRA minutes.
A MOTION WAS MADE BY STEVE ANDREWS 'TO APPROVE THE MINUTES OF
THE SEPTEMBER 4, 2002, REGULAR HRA MEETING. DARRIN LAHR
SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY.
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Consideration of adding or removing items from the agenda.
Koropchak added that the City had received a letter fiom DTED stating the grant had
been awarded to the City fe)l' Ultra Machine Company.
4. Consent Al2:enda.
A. Consideration to authorize execution of a Quick Claim Deed from the HRA to the
City for the property described as Lots 1-5. Block 64, Citv of Monticello.
Recommendation: To approve authorization of execution of a Quick Claim Deed
ti'om the liRA to the City for the property described as Lots 1-5, Block 64, City of
Monticello.
Steve Andrews asked Koropchak if this property becomes park land would they be
unable to do anything else with it at another time and Koropchak advised they could not.
There was no further discussion.
A MOTION WAS MADE BY STEVE ANDREWS TO APPROVE THE CONSENT
AGENDA AS WRITTEN. DARRIN LAHR SECONDED THE MOTION. MOTION
CARRIED UNANIMOUSLY.
5.
Continued - Consideration to hear an update on the progress for redevelopment of a
portion of Block 52.
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HRA Minutes - 10/02/02
Koropchak advised that Steve Johnson had contacted her stating he was not ready to
come hack to the liRA at this time, but will be here in November. She also stated that
she had heard that Heaton was having second thoughts on participating which would
change the project. Koropchak will call Heaton to confirm. She also advised Johnson
that construction would need to start in March of 2003.
Koropchak provided parking inCormation regarding number of stalls available, as well as
a comparison of the dollar amount the liRA had given to the Amoco project, stating if
she used TIF cashflow of $185,000 and the price per square foot of $12.85, that would
mean up to $695,000 NPV, which is a little more than what Mark Ruff had stated
previously. She suggested going with the $450,000 NPV pay as you go, along with
giving them the HRA lot. She also compared the offsite parking using an average cost
for the Amoco site of $1,750, and using the same scenario for this project it would
amount to $280,000 NPV ten' parking, assuming the project is the same as what was
initially presented.
There was further discussion on number of parking stalls and if all Jots were counted,
which Koropchak stated that all lots were not counted in the feasibility analysis.
6.
Consideration to discuss local Fair I lousing issues.
Koropchak advised the HRA that the reason they were asked to discuss the local fair
housing issues was due to a grant received for Twin City Die Castings. She explained
that because the dollars the City received was from the State, there is a great deal more
monitoring required of the State and the City. She added that the time frame was
extended for TCDC as they had not yet created their 85 jobs. Koropchak advised that
DTED only accepted 40 of the jobs created, as 20 were full time temporary jobs and the
grant calls for full time permanent jobs.
According to the grant agreement, the HRA must continue to hold puhlic meetings to
discuss local fair housing issues in the community. Koropchak defined the civil rights
acts as it prohibits discrimination. Brian Stumpf asked about any deficiencies and
Koropchak stated she was not aware of any, and the HRA' s joh is to make sure that the
City is aware of the need to follow the act. She also added that the fair housing act's plan
of action included the HRA conducting the meetings as requested per the agreement
Under the population characteristics using the 1990 census, Koropchak stated that
minority population was approximately I % and the hreakdown for household
characteristics was 56% owners, 44 % renters. Using the 2000 census, the minority
population had increased to 3% and 72o/rl of total households are owners, 2R% renters
which shows home ownership went up. Koropchak also went over the populations for
over 65, female head of households, commuting time, median income and poverty status.
Regarding rent, the greatest percentage was between $500 and $700.
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HRA Minutes - 10/02/02
Koropchak also provided information regarding DTED guidelines for businesses
receiving revolving loan funds including the pay scale criteria and the median income
levcls for TIF housing districts. Barger asked what happens if TCDC doesn't meet the 85
job creation requirement and Koropchak stated ifthey create 60 johs they would have to
make up the difference in payment. More critical is the federal guidelines stating 51 %
must be for low to moderate inconle persons. If they do not meet the 51 %, they would
have to pay the entire amount back. Koropchak fclt it was discouraging to thc City as
they would likc to see higher paying johs in Monticello. Andrcws asked if it was the City
that would have to pay back the monies. Koropchak also noted that if the company did
not meet the requirement for jobs they still have the company locatcd in Monticello.
Koropchak provided a copy of the building codes in regard to handicap requiremcnts, as
well as a portion of the comprehensivc plan. The City should monitor housing
development to provide a full range of housing. Also regarding the Aflirmative Action
Plan, it was noted that the cities receiving federal funding need to work directly with the
Federal Agency from which funding is received to determine if an affirmative action plan
is required. Koropchak briefly touched on the fair housing issues in greater Minnesota,
noting the need for employers to be consistent in participation with housing developments.
Koropchak stated that a summary ofthe information would he provided to the City
Council and Planning Commission to keep them aware of the j~lir housing act.
7.
Consideration to authorize pavment of liRA bills.
A MOTION WAS MADE BY BILL FAIR TO AUTIIORIZE PAYMENT or TilE lIRA
BILLS. BRAD BARGER SECONDED THE MOTION. MOTION CARRIED
UNANIMOUSI,Y.
8. Consideration of Executive Director's Report.
. Koropchak provided the rcport and reminded them of UMC's groundbreaking on
October 4th.
. They also discussed a letter from the OAT to Barry Fluth regarding required
landscaping and that the OAT reviewed the facade improvements to the carriage
house. There is no brick on the carriage houses.
. Koropchak askcd the HRA what their feelings were in regard to Steve Johnson's
project and moving it along, noting they still do not have a contract or deposit.
Lahr asked why Heaton would possibly back out and Koropchak stated Heaton
may bc interested in pursuing something on his own. Lahr suggested the HRA
contact him. Koropchak stated she may also contact Pat Sawatzke.
9.
Committee Reports. None
10.
Other Business. None
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lIRA Minutes - 10/02/02
11.
Adjournment.
A MOTION WAS MADE BY I3ILL FAIR TO ADJOURN T1-IE MEETING AT 6:40 P.M.
BRAD BARGER SECONDED THE MOTION. MOTION CARRIED.
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