HRA Minutes 02-07-2007•
MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, February 7, 2007 - 6:00 p.m.
Bridge Room -Community Center
Commissioners Present: Chair Brad Barger, Dan Frie, and Bill Fair.
Commissioners Absent:: Vice Chair Steve Andrews and Darrin Lahr.
Council Liaison Absent: Wayne Mayer.
Staff Present: Executive Director Ollie Koropchak.
Call to Order.
Chair Barger called the HRA meeting to order at 6:07 p.m. declaring a quorum.
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2. Consideration to approve the December 6, 2006 HRA minutes.
COMMISSIONER FAIR MADE A MOTION TO APPROVE THE DECEMBER 6, 2006
HRA MINUTES. SECONDED BY COMMISSIONER FRIE AND WITH NO
CORRECTIONS OR ADDITIONS, THE HRA MINUTES WERE APPROVED AS
WRITTEN. YEAS: FAIR, FRIE, AND BARGER. NAYS: NONE.
3. Consideration of adding or removing items from the a eg_nda.
Koropchak requested two items be added to the agenda: SA. Resolution requesting the City
Council call for a public hearing on the proposed TIF Plan for TIF District No. 1-38. SB.
Resolution calling for a public hearing on the proposed awarding of a business subsidy to WRE,
LLC.
4. Tabled -Consideration to authorize pavment of the exercised Contract of Deed between the
City and the Otter Creek Groun, LLC in the amount of $1,269,900.33.
This item was tabled at the December HRA meeting at the advise of HRA Attorney Bubul until
such time the HRA General Fund received revenues for the AVR site traded by the City.
Given the City Finance Director has authorized and transferred $1,385,208 from the County
Road 18/I-94 Project 2004-O1C into the HRA General Fund for the 12-acre developable site
given to AVR, the HRA made the following motion: COMMISSIONER FAIR MADE A
MOTION TO RATIFY PAYMENT OF THE EXERCISED CONTRACT FOR DEED
BETWEEN THE CITY AND OTTER CREEK GROUP, LLC IN THE AMOUNT OF
• $1,269,900.33 FOR APPROXIMATELY 53 ACRES OF LAND ACQUIRED ON
AUGUST 23, 2006. COMMISSIONER FRIE SECONDED THE MOTION AND WITH
NO FURTHER DISCUSSION, THE MOTION CARRIED. YEAS: FAIR, FRIE AND
• HRA Minutes - 02/07/07
BARGER. NAYS: NONE. Fair asked where or if the city reserve funds were used to pay
for the 12-acre AVR site? That would be a question for the Finance Director.
5. Consideration to approve entering into the Preliminary Development Agreement between the
HRA and Walker In-Store.
The HRA was asked to approve entering into the Preliminary Development Agreement dated
January 31, 2007 between the HRA and Walker In-Store. The Agreement has been executed
by the developer and the $10,000 deposit submitted. Koropchak informed the commissioners
that Walker accepted the HRA offer of $43,560, no assessments and no trunk fees for the
5.82 acre site (Lot 2, Block 1, Otter Creek Crossing 3`d Addition). The parcel consists of
4.27 acres of ponding and utility easements and 1.55 developable acres. COMMISSIONER
FAIR MADE A MOTION TO APPROVE ENTERING INTO THE PRELIMINARY
DEVELOPMENT AGREEMENT BETWEEN THE HRA AND WALKER 1N-STORE.
SECONDED BY COMMISSIONER FRIE AND WITH NO FURTHER DISCUSSION,
THE MOTION CARRIED. YEAS: FAIR, FRIE, AND BARGER. NAYS: NONE.
A. Consideration to approve a resolution requestin tg he City Council of the Cit~f
Monticello call for a public hearing on a modification to the Redevelopment Plan for
• Central Monticello Redevelopment Proiect No. 1 and the establishment of a TIF Plan
for TIF District No. 1-38 (an Economic Development District) therein and the adoption
of a TIF Plan therefor.
The HRA was requested to approve a resolution requesting the City Council on February 26,
2007, call for a public hearing date of Apri123, 2007, to consider the proposed adoption of the
modification of the Redevelopment Plan and the establishment of TIF District No. 1-38 and its
plan association with the Walker In-Store project. This will allow Ehlers & Associates to
prepare and distribute the TIF Plan in the absence of the Executive Director.
COMMISSIONER FAIR MADE A MOTION TO APPROVE A RESOLUTION
REQUESTING THE CITY COUNCIL OF THE CITY OF MONTICELLO CALL FOR A
PUBLIC HEARING ON A MODIFICATION TO THE REDEVELOPMENT PLAN FOR
CENTRAL MONTICELLO REDEVELOPMENT PROJECT NO. 1 AND THE
ESTABLISHMENT OF TIF PLAN FOR TIF DISTRICT NO. 1-38 (AN ECONOMIC
DEVELOPMENT DISTRICT) THEREIN AND THE ADOPTION OF A TIF PLAN
THEREFOR. COMMISSIONER FRIE SECONDED THE MOTION AND WITH NO
FURTHER DISCUSSION, THE MOTION CARRIED. YEAS: FAIR, FRIE, AND
BARGER. NAYS: NONE.
B. Consideration to approve a resolution callin f~public hearin og_ n the proposed
• awarding of a Business Subsidy to WRE, LLC.
The HRA was requested to approve a resolution calling for a public hearing on the proposed
awarding of a Business Subsidy to WRE, LLC dba Walker In-Store. If an individual entity
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HIZA Minutes - 02/07/07
receives a public subsidy of greater than $100,000 a public hearing must be held. WRE, LLC
will create at least 11 new jobs for the City of Monticello at an average wage-level of at least
$18.81 per hour without benefits and will construct a 10,240 sq ft facility. The HRA public
hearing will be April 11, 2007. COMMISSIONER FAIR MADE A MOTION TO
APPROVE THE RESOLUTION CALLING FOR A PUBLIC HEARING ON THE
PROPOSED AWARDING OF A BUSINESS SUBSIDY TO WRE, LLC.
COMMISSIONER FRIE SECONDED THE MOTION AND WITH NO FURTHER
DISCUSSION, THE MOTION CARRIED. YEAS: FAIR, FRIE, AND BARGER. NAYS:
NONE.
6 Consideration to assess the Transformation Home Loan Program and approve continuation of
the Program.
The HRA established the Transformation Home Loan Program two years ago and requested an
annual assessment of the program. Two loans were approved and disbursed and another loan
approved but did not meet the definition of "substandard". An amount of $150,000 was
earmarked for the program from pooling dollars of TIF District No. 1-22 and has a remaining
balance of $110,154. A brief discussion centered around the potential use of the program by a
contractor who purchased, renovated, and then sold the home. Fair preferred not to use the
• program as a subsidy for contractors. Given the average selling price on homes within the
downtown area is about $170,000, the commissioners agreed to leave the assessed market
value for 2007 at $175,000 or less. The commissioners encouraged marketing the program to
the lenders, contractors, and real estate agents. COMMISSIONER FRIE MADE A
MOTION TO CONTINUE THE TRANSFORMATION HOME LOAN PROGRAM FOR
2007 EXPANDING THE PROGRAM BOUNDARIES TO INCLUDE THE EAST AND
WEST CITY LIMITS AND NORTH SIDE OF INTERSTATE 94. COMMISSIONER
FAIR SECONDED THE MOTION AND WITH NO FURTHER DISCUSSION, THE
MOTION CARRIED. YEAS: FRIE, FAIR, AND BARGER. NAYS: NONE.
7. Consideration to review estimated revenues and expenditures for Otter Creek Crossing and
assess need to amend discount price of $1.00 per sq ft.
This being an information item only, no action was necessary or taken by the commissioners.
The commissioners agreed to keep the market price at $3.00 per sq. ft. and the reduced price
at $1.00 per sq. ft. for qualified buyers. The goal is to create jobs at higher wage-levels and to
increase the tax base. The estimated expenditures were based on full development of the park
($2.31 per sq ft) and the revenues on the 25.7 acres developed to date ($2.41 per sq. ft.) The
majority of the improvements have been constructed in Phase I and II. It is estimated 53.3
acres remain for sale and developable.
• 8. Consideration to respond to negotiations by Steve Conroy (cant' over.)
Given Froslie had inquired as to the status of the negotiations on December 28, the
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HRA Minutes - 02/07/07
commissioners reviewed the offers and counter-offers and acknowledged the Springborg
parcel had sold. The commissioners agreed to re-offer Froslie the November 3 HRA offer of
$327,789 with use of the property for 2-3 years. The offer good through April 11, 2007, as
the HRA is looking at other properties to purchase. Koropchak to notify Conroy of the HRA's
February offer.
9. Consideration to reschedule the HRA annual meeting date in April
In lieu of the fact that the HRA Treasurer and Executive Director will return to the office Apri19
and Apri12, respectively, the following action was taken. COMMISSIONER FAIR MADE
A MOTION TO RESCHEDULE THE HRA ANNUAL MEETING FROM APRIL 4, TO
APRIL 11, 2007. COMMISSIONER FRIE SECONDED THE MOTION AND WITH
NO FURTHER DISCUSSION, THE MOTION CARRIED. YEAS: FAIR, FRIE, AND
BARGER. NAYS: NONE.
10. Consideration to authorize nayment of HRA bills and accent the Ehlers' 2007 hourly rate
increase.
COMMISSIONER FAIR MADE A MOTION TO AUTHORIZE PAYMENT OF THE
• HRA BILLS SUBMITTED. COMMISSIONER FRIE SECONDED THE MOTION AND
WITH NO FURTHER DISCUSSION, THE MOTION CARRIED. YEAS: FAIR, FRIE,
AND BARGER. NAYS: NONE.
COMMISSIONER FAIR MADE A MOTION TO ACCEPT EHLERS' HOURLY
INCREASE OF $5.00 COMMENCING JANUARY 1, 2007. SECONDED BY
COMMISSIONER FRIE AND WITH NO FURTHER DISCUSSION, THE MOTION
CARRIED. YEAS: FAIR, FRIE, AND BARGER. NAYS: NONE.
11. Consideration of HRA Executive Report.
Report accepted as written.
12. Committee Reports: Marketinu -Koropchak noted the attached update to the ad and city
community page for the Wright County Economic Development
Partnerships 2007 Directory. Three companies have been contacted
for a new billboard location along I-94 in 2007. February 12 at 10:00
a.m. Kleinwachter and Koropchak will meet with SCSU students to
answer questions about the Feasibility Study.
Fiber tics -Koropchak reported that the pre-engineering design and
• RFP are underway as this is a requirement of the revenue bonding and
was previously approved by the Council. Next Council workshop and
action sometime in March.
Comp Plan - Frie reported the February 1 meeting focused on
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HRA Minutes - 02/07/07
industrial. Industrial was defined as general industry and business
campus. Three areas were suggested: expansion of the Monticello
Business Center to the south and north as business campus, southeast
area of Highway 25 and 85t`' Avenue as general industrial, and
northwest area by proposed future I-94/Orchard Interchange. Next
meeting February 22 will focus on housing.
13. Next regular HRA meeting -The commissioners agreed to cancel the Wednesday, March 7,
2007 HRA meeting in lieu of the HRA Treasurer and Executive Director scheduled to be out of
the office. A special meeting will be called if so determined.
14. Adjournment.
COMMISSIONER FAIR MADE A MOTION TO ADJOURN THE HRA MEETING.
SECONDED BY COMMISSIONER FRIE AND WITH NO FURTHER BUSINESS, THE
HRA MEETING ADJOURNED AT 7:30 P.M.
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Recorder
HRA Chair
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