Loading...
HRA Minutes 06-05-2007• MINUTES HOUSING AND REDEVELOPMENT AUTHORITY Wednesday, June 5th, 2007 Commissioners Present: Vice Chair Bill Fair, Brad Barger, and Dan Frie Commissioners Absent: None. Council Liaison Present: Wayne Mayer Staff Present: Ollie Koropchak, Rick Wolfsteller, Angela Schumann 1. Call to Order. Vice Chair Bill Fair called the meeting to order. 2. Consideration to approve the April 11, 2007 and May 2nd 2007 HRA minutes. Commissioner Frie noted one change to the April 11th minutes, which should reflect that on page 2, paragraph 2, the minutes should reflect that Koropchak answered Fair's question. • MOTION TO APPROVE THE AMENDMENT TO THE APRIL 1 lth MINUTES. BY COMMISSIONER FAIR. MOTION SECONDED BY COMMISSIONER FRIE. MOTION CARRIED, 3-0. MOTION BY COMMISSIONER FRIE TO APPROVE THE HRA MINUTES OF APRIL 11th, 2007. MOTION SECONDED BY COMMISSIONER FAIR. MOTION CARRIED, 3-0. MOTION BY COMMISSIONER FRIE TO APPROVE THE HRA MINUTES OF MAY 2nd, 2007. MOTION SECONDED BY COMMISSIONER BARGER. MOTION CARRIED, 3-0. 3. Consideration of adding or removing items from the a eg nda. Koropchak added as item 6a a discussion of funding for a consultant on the bio- science initiative. • • 4. Consent A e NONE. 5. Consideration to authorize preparation of a resolution and to approve a resolution entering into a Loan Agreement between the Housing and Redevelopment Authority in and for the City of Monticello and the City of Monticello for 201 East Broadway. Koropchak reported that a purchase agreement had been drawn up and taken to sellers. Frie reported that the purchase agreement had been presented, and the seller had requested a small change in moving the closing date to July 16tH Koropchak explained that the owner was going to run business through end of season, and then auction remaining inventory and property. The agreement states that the owner will give up possession by Jan. 1, 2008. Koropchak explained that language regarding inspection had also been added. The owner had also indicated that the concrete barriers on site were available to the City, if the City wants them. Koropchak stated that she had spoken with John Simola, who had indicated that they could perhaps utilize the building. With those notes, Koropchak stated that the agreement had been signed. Koropchak stated that when the item regarding a possible loan was taken to the • Council, there was quite a bit of discussion. At that time, Wolfsteller had brought up that in order to meet the county recorder's deadlines for tax exemptions, the transaction needs to close and be reported by before July 1. That information has been conveyed to the property owner. Frie reported that title work is being completed. Fair clarified that HRA has to own the property by July 1St. Wolfsteller stated that closing by that date would save the HRA about $15,000 in tax payments in 2008. Mayer asked the HRA's offer had gone through Frie's business. Frie responded that he had acted as the buyer's representative and that the earnest money is held by the Wright Sherburne Realty Trust account. Koropchak clarified that Mayer was asking about possible conflict of interest. Fair noted that the seller is using Wright Sherburne. Frie explained that as part of practice, he had made an agency disclosure regarding the representations. Koropchak stated that in the Council's discussion, the approval of the loan was a 3-2 vote. Koropchak stated that when thinking about this sale in more detail, she had been trying to concentrate on how to use District 1-22 25% pooling dollars. Koropchak stated that in examining funding in more detail, she looked for ways to avoid having the HRA pay interest. • 2 • As a result, Koropchak proposed an alternative funding mechanism. She stated that in looking at the balances of other districts, 1-22 has balance of $320,000. She stated that she had thought perhaps the HRA could use $250,000 out of that fund and requesting a $200,000 from the City Council. In that way, the City doesn't have to put out as much from general fund, and the HRA doesn't pay as much interest. However, in talking further about this option with HRA Attorney Steve Bubul, he indicated that the purchase must be an annual calculation of the 25% of pooling dollars. Koropchak stated that after that discussion, she looked at the fund balances of all districts. Koropchak stated that although the HRA general fund is $700,000 short in terms of cash, the districts cumulatively have a balance available. Old TIF districts, such as Construction 5, which is still collecting increment, has a balance of over $600,000. Bubul suggested using $450,000 out of that district. Koropchak stated that blight is not an issue, because these are not subject to restrictions and pooling dollars. Koropchak stated that her recommedation is to use those dollars. Then the HRA doesn't need to enter a loan agreement with the City Koropchak recommended that the HRA authorize proceeding with purchase of property and authorize preparation of closing documents, based on the previous suggestion of using funds from District 1-5, Construction 5. Koropchak stated that the HRA could simply make a motion based on that alternative. • Fair clarified that the whole item needs to be acted on, so the HRA would need to act to deny authorizing the resolution for loan agreement with the City. MOTION BY COMMISSIONER BARGER TO DENY AUTHORIZING PREPARATION OF A RESOLUTION BETWEEN THE HRA AND CITY COUNCIL FOR THE PURCHASE OF PROPERTY AT 201 EAST BROADWAY. MOTION SECONDED BY COMMISSIONER FRIE. MOTION CARRIED, 3- 0. Barger added discussion of this item as agenda item Sb. Sb. MOTION BY COMMISSIONER BARGER TO AUTHORIZE PROCEDING WITH THE PURCHASE CLOSING DOCUMENTS FOR PROPERTY LOCATED AT 201 E. BROADWAY AND WITH THE FUNDING OF $450,000 FROM TIF 1-5 AND A CLOSING DATE OF PRIOR TO JULY 1, 2007 MOTION SECONDED BY COMMISSIONER FRIE. • 3 • Wolfsteller pointed out that as this sale uses unrestricted dollars, the future sale of this property would in turn not be restricted. So, if the HRA sold the property for more than original purchase, it all goes back to the HRA. MOTION CARRIED, 3-0. Frie stated that this purchase signals to the downtown that the HRA is interested in redevelopment and is willing to purchase property to achieve redevelopment. Koropchak stated that that the HRA will need to decide if there is a use for the structure or not. 6. Consideration to accept the resignation of HRA Commissioners Steve Andrews and Darrin Lahr. Koropchak stated that Darrin Lahr and Steve Andrews have submitted letters of resignation for the record. MOTION BY COMMISSIONER BARGER TO ACCEPT THE RESIGNATION OF HRA COMMISSIONERS DARRIN LAHR AND STEVE ANDREWS. MOTION SECONDED BY COMMISSIONER FRIE. MOTION CARRIED, 3-0. • Koropchak noted that the City Council had also received the letters. Koropchak noted that the attorney had indicated it wasn't possible to get them anything in terms of a gift for service. However, Koropchak stated that in recognition of their service to the organization, the HRA could consider a small private outing. The Commissioners agreed and asked Koropchak to arrange a gathering of current and former HRA members, particularly in light of a possible merger with the EDA. 6a. Consideration to review funding a Bio-Science Initiative Consultant. Barger reported that he had attended the stakeholder meeting introducing the bio- science concept and it seemed like the idea has generated a lot of interest. The marketing group is at a stage to move forward, and it feels that the effort needs to be a little bit more organized. Barger stated that there has been discussion about hiring a consultant or point person to move the project forward and show that there is commitment. Barger stated that essentially, the group needs someone who can tie things together. Koropchak explained that the marketing group liked the fiber optics task force model, where consultant Milda Hedblum has been a lead person. The marketing group understands that they will need to define a scope of work. • 4 • Koropchak stated that she has been in contact with Anoka-Ramsey for assistance on plan development They have indicated that they would help develop a plan through the first 6 months. She noted that she had also discussed this item at the IDC meeting and Bill Tapper had indicated an interest in being involved, as he has a contact tied to Medtronic. In talking with Anoka-Ramsey about scope, a consultant had been discussed and subsequently, acquiring funding sources for consultant services. It was suggested that perhaps the HRA could be a source for funding. Koropchak stated that she didn't know about the amount of dollars involved at this point. Koropchak stated that the question is the whether the HRA interested. The funding could have to come from the general fund. Fair inquired about what types of industries the City would be targeting. Koropchak responded that there are four basic categories, of which medical devices is just one field. Koropchak stated that the type of business to be targeted in one of the items stated that has to be worked through. Koropchak noted again that the group would need to determine a scope of work. Fair commented that he is interested, but at this time there seems to be too many unknowns. Mayer stated that trying to draw similarities to fiber optics, it is important to identify individuals or organizations to produce the deliverables you need to proceed. Mayer suggested that if Bill Tapper has offered a resource, then work • from there. Barger and Koropchak clarified that the group's goal is to narrow the scope and make connections. Fair asked who would have oversight of the consultant. Barger stated that a task force needs to be formed. Fair clarified that the bio-science idea came out of the marketing subcommittee. Koropchak agreed, noting that the group had SCSU prepare a feasibility study on the topic. Frie summarized that the group needs to move forward but has run to the end of what it can do without more resources. Koropchak stated that City and marketing group representatives will be going to Eden Prairie to discuss strategies for attracting high-tech businesses with the City of Eden Prairie. She extended the invitation to HRA members. Fair asked for confirmation of what is being asked for. Barger stated that it is just a statement of support if a task force is going to be formed. Mayer asked what types of items are viewed as regional advantages. Barger stated that the major advantage is tax breaks. Koropchak stated that given the questions, there needs to be more discussion on the concept. Frie stated that it may be the task force that puts more form to this. 5 Mayer stated that he thought the effort was moving in the right direction. 7. Consideration to authorize payment of HRA bills. NONE. 8. Consideration of HRA Executive Report. Koropchak highlighted to the HRA that they had been invited to visit Washburn Computer group on Wednesday, June 27th at 3:00 PM. Koropchak stated that Lyle Trunnel has been notified that the HRA is not interested in purchasing his property. 9. Committee Reports a. Fiber Optics - NONE. b. HRA/EDA merger - A meeting between city, HRA and EDA representatives had been held prior to the HRA meeting to discuss the procedures and process of an HRA/EDA merger. Fair stated that Steve Bubul had clarified items related to the merger. Fair reported that by statute, the EDA would have more powers than the HRA. Fair stated that Monticello's EDA has been limited by originating ordinances from City. The HRA would need to be dissolved by resolution. Fair indicated that Bubul could provide these services. The City Council will need to decide on make-up of the new organization. The HRA would exist in transition because of transfers and transactions. Fair expressed some concern that the HRA is currently operating on three members only. Frie askd what other communities to do in terms of these two organizations and their structures. Koropchak stated that it varies. Koropchak stated that the Council needs to be updated with the information from the meeting. Mayer stated that the meeting was just to see if the merger was feasible. Fair noted with that with bonding and taxing, he doesn't know that the City would want non-residents on that group, although that will be up to the Council. Barger asked how much the merger will cost the City in terms of legal fees. Koropchak reported that Bubul had estimated between $3000 and • $5000.. Koropchak stated that she wasn't sure Bubul knows how much 6 • the HRA owns. Koropchak also explained that there are a number of administrative items that will need to be changed. Barger asked if everything needs to be modified. Fair answered that Bubul had stated that everything gets transferred to the new entity. Where there are mortgages, those would need to be amended and properties would need to be deeded over. Fair noted that the HRA has the lease agreement and bonds on the Community Center; the City is leasing from the RHA. 10. Next Meeting Barger recommended cancelling the July 4th meeting unless something comes up. Koropchak stated that 72 hours would be needed for notice of meeting. The Commissioners agreed. 11. Adjournment. MOTION BY COMMISSIONER BARGER TO ADJOURN. MOTION SECONDED BY COMMISSIONER FRIE. MOTION CARRIED, • 3-0. ~ --- Vice Chair Secret ~- 7