HRA Minutes 12-04-2002
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MINlJTI~:S
MONTICELLO HOUSING AND RED[~VELOPMENT AUTHORITY
Wednesday, December 4,2002 - 6:00 p.m.
505 Walnut Street - Bridge Room
Commissioners:
Absent:
StaH:
Chair Brad Barger, Dan Frie, Hill Fair and Council Liaison Brian Stumpf
Darrin Lahr and Steve Andrews
Rick Wolfsteller, Ollie Koropehak, and Lori Kraemer
1 . Call to Order.
Chair Hrad Barger called the meeting to order at 6 p.m. and declared a quorum.
2. Consideration to approve the November 6,2002 liRA minutes.
A MOTION WAS MADE BY BILL FAIR TO APPROVE THE MINUTES OF THE
REGULAR liRA MEETING ON NOVEMBER 6, 2002. DAN FRIE Sl:<:CONDED Till:<:
MOTION. MOTION CARRIED.
3. Consideration or addinl! or re1l1Oving items from the agenda. None
4.
Consent Agenda.
5. Continued - Consideration to hear an update on the progress for redevelopment of a
portion of Block 52 and 51.
5a. Consideration to approve entering into a Preliminarv Development Agreement
with Steve Johnson for Phase I.
Executive Director Ollie Koropchak advised the liRA that she had spoken with Steve
Johnson earlier that day and he stated he would be meeting with Jim McComb that
evening and he would be in contact with her. Koropchak again advised of the time line
concerns regarding TIF and Johnson felt they could meet the time lines. lie also advised
Koropchak that he would be in this week with the deposit and to sign the agreement.
Johnson would also like to include Phase II in the preliminary agreement. Koropehak
asked the HRA members to make a motion authorizing her to sign the preliminary
agreement ancl accept the deposit, if they were in agreement.
The benefit to including Phase II in the preliminary agreement is fiJr the I IRA to look at
future public improvements as it would be more encouraging iJthe HRA knew there were
private investments. Koropchak wi II also modify the agreement to state "negotiate"
rather than "execute" in order to meet the time table for the public hearing.
HR^ Minutes - 12/04/02
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A MOTION WAS MADE BY BILL FAIR TO APPROVE ENTERING- INTO A
PRELIMINARY DEVELOPMENT AGREEMENT WITI-I STEVE JOIINSON FOR
PI lASE I AND II OF THI,: BLOCK 52 MIXED USE DEVELOPMENT, PIIASE 11
SUBJECT TO TIME FRAMES, AND AUTHORIZE KENNEDY AND GRAVEN TO
BEGIN PREP ARA TlON OF THE CONTRACT FOR PRIV ATE REDEVELOPMENT,
CONTINGENT ON RECEIPT OF A DEPOSIT IN THE AMOUNT OF $5,000. DAN
FRIE SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY.
5b. Consideration to hear proieet update bv Sawatzke.
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Pat Sawatzke advised thc HRA membcrs that he has been working with the architect and
builder, focusing on the proposal with the underground parking, as this option provides
Inore river view. He stated that the estimated cost at this time for construction, tear-down
and rebuild is $3.2 million and hc now needs to determine what kind ofrcvenues can be
made. Sawatzke advised that this estimate includes parking, site grading and paving. lIe
also advised that the buildings would have brick or stone fronts. Thc underground
parking would provide for 1 space per residential unit and thcrc would also he storage
lockers underground. Thc second and third i100rs would be residential with ground i100r
being commercial. Hc stated that thc rental units would he approximately 1,000 sq. ft.
with 2 bedrooms, and possihly 6 units pcr floor. Sawatzke added that the apartments
would be only on one side of the bui Iding due to the physical size of the property as well
as thc view of the rivcr. He stated this creates more wasted space in the corridors, but
allows for each unit to have river views.
Koropchak advised something that would he beneficial for thc HRA would be to look at
expcnding some of their dollars and she asked Sawatzke at what point would he feel
comfortable in signing a preliminary agrcement or a deposit. Sawatzke did not fcel he
was ready for that at this time, but possibly in several months.
They discussed parking as wcll and Sawatzke stated he had a different idea of parking
than Steve Johnson did. He will bc interested in parking discussions as thcy develop.
They cncouraged Sawatzke to proeccd and come hack.
5c. Consideration to hear summarv of parkin!! requircments for redeveloped arca.
Koropchak stated that Jeff O'Neill and Steve Grittman calculatecl the amount of parking
spaces needed for Steve Johnson's project, Phases I and II. They advised with Steve's
Phase I & II plans and using the 60% rule, public parking lot, as well as parking on both
sides of Walnut Street, Sawatzke's project should break even but Johnson may have to
pay into the parking fund. Koropchak added that this will all need to be recalculated as
Grittmal1 did not havc the square footage for the existing Block 51 at the time of the
parking study.
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HRA Minutes - 12/04/02
Koropchak advised that the HRA could considcr looking at TTF Dist. 1-22 bond money
procccds which are left to spend, as well as public improvemcnts. She provided some
options regarding parking as well. Bill Fair asked about the parking fund and she advised
that thc City has been putting money into the parking fund, but she did not know how
much, if any, was available. Rick Wolfsteller stated thcre was not vcry much in the fund
as it has been expended already. Koropchak advised that John Simola mentioned that
water/sewcr lines along Walnut St. would need replacing with a new project. Shc stated
that if thc lIRA was interestcd in proceeding with any of those options, they may want a
commitmcnt from the developers. A decision whether to open Walnut Street at River
Street would need consideration, this would be a City Council decision.
Bill Fair stated that there has to be commitments from the developers before the lIRA
could look at their options for investment, stating the developer will steer the HRA. He
askcd if the developcrs had looked at possibly a public corridor or pass-through on their
block so that there was access to the opposite side, encouraging thc public to park where
thcre is available parking and walk through the corridor. lIe addcd that this makcs it
casier for the public to get in and out. Thcre was no further discussion.
6.
Consideration to authorize paymcnt of lIRA bills.
Therc was discussion on the overchargcs for the Front St. project for excavation. Rick
Wolfsteller advised that it was not a lump sum bid, but that it was cstimatcd by thc
cnginecr and the bid was based on that number. Wolfsteller stated that he agreed the
amount should be owcd, howcvcr the question would be should thc enginccr havc studied
this further prior to bids.
A MOTION WAS MADE BY BRAD BARGER TO PA Y THE $45.00 INVOICE TO
KENNEDY AND CiRAVEN AND TABLE THE PAYMENT OF THE FRONT STREET
SITE GRADING UNTIL FURTHER INFORMATION IS OI3'I'AINED. DAN FRIE
SECONDED THl': MOTION. MCrnON CARRIED UNANIMOUSI,Y.
7. Consideration of Exccutive Director's Repol1.
Koropchak provided thc report adding that regarding Tiff District 1-21, Mark Rutl
had advised not to retirc that district.
. Comp Plan Task Force will be meeting on Thursday.
Collectcd final payment from Aroplax for tax deficiency
8.
Committee Rcports. There were no reports.
9.
Other Business. Therc was no other business.
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10.
Adjournment.
H R^ Minutes - 12/04/02
A MOTION WAS MADE BY BILL FAIR TO ADJOURN THE MEETING AT
7: 15 P.M. BRAD BARGER SECONDED THE MOTION. MOTION CARRIED
UNANIMOUSLY.
HRA Chair
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