HRA Minutes 06-01-2005MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, June 1st, 2005
505 Walnut Street -Bridge Room
Commissioners Present: Steve Andrews, Brad Barger, Bill Fair, Dan Frie
Commissioners Absent: Chair Darrin Lahr
Council Liaison Absent: Wayne Mayer
Staff Present: Rick Wolfsteller, Ollie Koropchak, and Angela Schumann.
1. Call to Order
Vice Chair Frie called the meeting to order at 6:00 PM and declared a quorum.
2. Consideration to approve the May 4, 2005 HRA minutes.
MOTION BY COMMISSIONER BARGER TO APPROVE THE MINUTES OF
MAY 4TF~, 2005. MOTION SECONDED BY COMMISSIONER FRIE.
MOTION CARRIED WITH COMMISSIONER FAIR ABSTAINING.
3. Consideration of adding or removing items from the agenda.
NONE.
4. Consent A enda.
NONE.
5. Update on Landmark Square Phase II
Brad Johnson stated that they will be requesting that the HRA create a TIF district
related to their proposed development project. Johnson reported that they had
found two-three prospective tenants for the project. They are currently going
through the process of evaluating construction costs and may need to slightly
adjust their construction design based on costs.
Koropchak noted that the developers had entered into their preliminary agreement
and supplied their deposit. She explained that the HRA will need an updated site
plan for the square footage calculations.
Fair asked if they have all the required parcels acquired. Johnson and Barry Fluth
confirmed they had been acquired. Koropchak stated that with the new TIF
district being established, and the fact that the redevelopment project will be
HRA Minutes 6/ 1 /2005
subject to new rules, including an interior/exterior inspection, the process will
take some time. Fluth asked about the costs of the inspection. Koropchak stated
that Ehlers recommended using an outside inspector. Ehlers will also put together
a timetable for the TIF assistance.
Johnson stated that their timetable to begin the project is August or September.
Fair asked if the developer's plan was still to have drive-through on the corner.
Johnson confirmed, noting that the drive-through requires a conditional use
permit. Frie asked percent of the space they have tenants for. Johnson stated that
at this time, it is about 40-50%.
Johnson commented on getting people off of Highway 25 into the downtown area.
He explained that all prospective tenants are interested in exposure. Johnson
recommended some type of sign at the corner of Highway 25 and Broadway.
Fluth indicated that he might even contribute to that venture.
MOTION BY COMMISSIONER FAIR TO AUTHORIZE PREPARATION OF
TIF DISTRICT 1-35 AND TO PLACE THE FORMAL RESOLUTION ON THE
AGENDA FOR THE SPECIAL MEETING ON JUNE 27t~', 2005.
MOTION SECONDED BY COMMISSIONER BARGER. MOTION
CARRIED.
Johnson commented on the Cub TIF situation, requesting that Wolfsteller and
Koropchak sit down with them to discuss the matter. Fluth commented that they
receive a small check when it was supposed to be big enough to pay on the loan.
Andrews asked if they were asking the HRA to forgive something. Johnson
stated that they are just looking for possible solutions.
MOTION BY COMMISSIONER FAIR TO DIRECT STAFF TO MEET WITH
JOHNSON AND FLUTH TO REVIEW THE TIF AGREEMENT ON THE CUB
DEVELOPMENT IN ORDER TO REVIEW POSSIBLE INEQUITIES
RELATED TO TIF LAWS AND REPORT BACK TO THE HRA ON THE
STATUS OF THE PROCESS.
MOTION SECONDED BY COMMISSIONER BARGER. MOTION CARRIED
WITH COMMISSIONER ANDREWS IN DISSENT.
6. Consideration to approve a resolution adopting a modification to the
Redevelopment Plan and eog_raphic boundaries for Central Minnesota
Redevelopment Project Plan No. 1 and establishing TIF District No. 1-34 (a
Renewal and Renovation District) and adopting the TIF Plan therefore.
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HRA Minutes 6/ 1 /2005
Koropchak reported that the HRA attorney recommends tabling any action and
recommended setting a special meeting at a later date to approve. The findings
have not been made yet for the purpose of establishing the district.
Koropchak stated that the TIF district site includes the proposed Target site and
Ready Mix sites, on which it is the City's plan to collect the tax increment.
Koropchak clarified that it is important to note that the tax increment goes for
public purpose for City's cost of interchange project. The TIF district is not being
created to provide assistance to Ryan or Weinand.
Fair asked if the funds would go for the Dahlheimer building removal.
Koropchak stated that the district is being reviewed as a renovation and renewal
district, which requires a special inspection. She noted that it is the first time the
City has used this type of district, and the qualifications for TIF are different. An
outside consultant has been hired for the inspection. Those findings have not
come back yet. Fair asked about the purpose of the inspection. Wolfsteller stated
that it must be found to be substandard, in terms of today's standards for building
code. Koropchak stated that the AVR site is included to maximize the amount of
expenditures. If it is found that the site doesn't meet the qualifications, the City
will continue as previous, without TIF.
Koropchak recommended that the special meeting be held Monday, June 27th
before the Cotmcil meeting. Koropchak also noted the extension of the
boundaries to include the Otter Creek Crossing and the AVR site.
• Koro chak noted that the Count can re uest a ortion of the TIF, althou h the
p Y q p g Y
have not done that previously.
MOTION BY COMMISSIONER BARGER TO TABLE ACTION ON THE
MODIFICATION OF THE REDEVELOPMENT PLAN AND THE
GEOGRAPHIC BOUNDARIES FOR CENTRAL MONTICELLO
REDEVELOPMETN PROJECT PLAN NO. I AND ESTABLISHING TIF
DISTRICT NO. 1-34 AND ADOPTING THE TIF PLAN THEREFOR AND TO
SET A SPECIAL MEETING DATE OF JUNE 27`h, 2005 AT 5:30 PM.
MOTION SECONDED BY ANDREWS. MOTION CARRIED.
7. Consideration of an update to the May 26 meetingproperty owners of Block
35.
Frie explained that at the previous HRA meeting, the Mayor had asked the HRA
to meet with the property owners on Block 35. Frie stated that they had explained
the role of the HRA in the redevelopment, provided a handout of information and
a short survey. Frie stated that there didn't seem to be the level of interest that
perhaps the Mayor had thought there was and that it seemed that property owners
had unrealistic expectations of the City. Frie noted that the purpose of the
meeting at that point was to gather information. Koropchak confirmed Frie's
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analysis and stated that three property owners were not present, Frie reported that
while most property owners said they see the need for redevelopment, they are not
interested in actually doing so at this time. Once the majority are interested, the
HRA may decide on a further course of action.
Barger asked of those interested, were any properties contiguous. Frie answered
that going east from Dino's, those property owners seemed to be interested all the
way to Agosto's building. Koropchak stated that she should have the appraisal
for the Dino's property back for the next meeting.
Fair stated that his concern is that we will have to pay relocation to Dino's.
Koropchak stated that the appraisal is only on the real estate. Fair stated his
reservation on acquiring any parcels that would require paying relocation. Barger
asked about the possibility of the renter's being gone as they were reported to be
on a month-to-month basis. Koropchak stated that in any case, the survey will be
a gauge of interest.
8. Consideration to discuss a mission statement for the Housing and Redevelopment
Authority.
Koropchak noted the special meeting held by Council on the 9t~' of May at which
the staff were directed to develop Mission Statements for their departments.
Koropchak stated that she believed it was also important for the City's
commissions to do the same in order to create a clear sense of purpose. AS such, •
she recommended that the HRA define mission and goals.
Koropchak read a suggested mission statement as follows: To increase the tax
base, to create jobs at liveable wage levels, and to maintain decent, safe, and
sanitary housing for persons of low and moderate income and their families
within the City of Monticello, Minnesota.
The Commissioners expressed their support of the statement, and recommended
that that the mission statement be revised to read "sustainable wage levels" and to
include a statement regarding the creation of a "spectrum of housing options".
Koropchak also reviewed the proposed goal statements for the HRA. The
Commissioners requested the following changes to the statements.
• Goal number 1 to read "maximize" rather than maximum.
• Removal of "elderly" from goal number 8.
Koropchak also suggested a goal relating to their Transformation Home Loan.
Koropchak noted that she would bring the revisions back during the Special
meeting for review.
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HRA Minutes 6/1/2005
MOTION BY COMMISSIONER ANDREWS TO ADOPT THE HRA MISSION
STATEMENT, PURPOSE AND GOALS, SUBJECT TO CORRECTIONS AS
NOTED.
MOTION SECONDED BY COMMISSIONER BARGER. MOTION
CARRIED.
9. Consideration to authorize payment of HRA bills.
NONE.
10. Consideration of the Executive Director's Report.
Koropchak reported that marketing efforts had begun for the Monticello Business
Campus, including postcard mailings, a new website, and a billboard, which will
be located in the high traffic area of I-94 between Rogers and Maple Grove.
Koropchak noted that there had been 16 total inquiries on the Transformation
Home Loan program, of which two are seriously considering the program.
Koropchak stated that she and Jeff O'Neill had met with Suntide Commercial on
redevelopment of Block 53. She also had received a call regarding possible re-
use of the theater building for a Minneapolis arts/theater group.
Koropchak explained that Council had authorized a task force for the fiber optics
project and asked the HRA for a volunteer to that committee. Andrews
volunteered with his IT background.
11. Committee Reports: Marketing
As noted above.
12. Other Business
NONE.
13. Adjournment
MOTION BY COMMISSIONER ANDREWS TO ADJOURN AT 7:45.
MOTION SECONDED BY COMMISSIONER BARGER. MOTION
CARRIED.
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