HRA Minutes 11-07-2007
MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, November 7, 2007 - 6:00 p.m.
Bridge Room -Community Center
Commissioners Present : Vice Chair Bill Fair, Dan Frie, and Sandy Suchy.
Council Liaison Absent: Wayne Mayer.
Staff Present: Executive Director Ollie Koropchak.
1. Call to Order.
Vice Chair Fair called the HRA meeting to order at 6:00 p.m. declaring a quorum. Fair
thanked Suchy for her willingness to be appointed on an interim basis.
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2. Consideration to approve the September 12, 2007 HRA minutes.
DAN FRIE MADE A MOTION TO APPROVE THE SEPTEMBER 12, 2007 HRA
MINUTES. SECONDED BY BILL FAIR AND WITH NO CORRECTIONS OR
ADDITIONS, THE MINUTES WERE APPROVED AS WRITTEN. SANDY SUCHY
ABSTAINED.
3. Consideration of adding or removing items from the a eg nda.
No items added or removed.
4. Consent Agenda:
None.
5. Consideration to grant the Executive Director the authority to award a building material
inspection bid for Cedar Street Garden Center and further direction for demolition.
The HRA purchased the Garden Center along East Broadway for $450,000 and closed on
June 25, 2007, agreeing to let the seller utilize the property through the end of 2007. Within the
Purchase Agreement, the sellers acknowledged there were no aboveground or underground
storage tanks located in or about the property. About a month ago the seller called to ask if the
HRA wanted to refill the fuel tank and was informed of an underground tank and due to the
alignment of the piping, the bulk dealer was unable to measure the amount of fuel in the tank.
With no disclosure of the underground tank during negotiations and the intent of the HRA to
demolish the building, additional costs will be incurred to remove the tank (size unknown) and
for soil testing. If contaminated soils, the cost would be even greater. HRA commissioners
were asked: Although the purchase price was equitable, how did the HRA wish to handle the
additional costs associated with the removal of the underground tank? Koropchak reported
Hl2A Minutes -11/07/07
• she had spoken with the sellers and noted there was no disclosure by the sellers in the purchase
agreement. With the completion of the going-out-of-business auction, the seller is still removing
items and expects to be done mid-November. The seller was reminded to call for the
disconnection of the city and electrical utilities and to notify and drop off the keys at the Office
of the Authority. An extra set of keys is at Red's Mobile across the street. The seller was
advised that the HRA would be conducting an internal hazardous material inspection in
November thereafter plans to go out for arequest-for-proposal for demolition and removal of
tank.
Given the alignment of the piping between the tank and building, Frie thought perhaps the tank
was an old furnace tank typical of the times. Fair said the site was once a gas station and
doubted the site was ever excavated. Suchy asked from the standpoint of the Chamber: Why
does the HRA want to demolish the building and have another vacant lot on main street?
Members responded the interest to demolish was that the building wasn't constructed for 12-
month use, the investment was for future redevelopment, the parcel also consists of a detached
garage and cement bins, and for security reasons.
The commissioners were informed that a second bid for inspection of hazardous materials
would not be solicited as Braun Tech has agreed to discount the total price of the HRA site and
• potential City site by $500. The HRA bid from Braun Tech is $1,630.00. The commissioners
concurred with the information. Fair requested the Purchase Agreement or Deed be checked
to insure the HRA has the right to enter the property prior to the seller's vacation.
DAN FRIE MADE A MOTION GRANTING THE EXECUTIVE DIRECTOR THE
AUTHORITY TO AWARD THE BUILDING MATERIALS INSPECTION BID AND
AWARD A DEMOLITION BID BASED ON THE RECOMMENDATION OF CITY
STAFF. COST TO THE HRA NOT TO EXCEED $500 FOR TANK REMOVAL AND
SOIL TESTING. IF COST EXCEEDS $500, SELLER BECOMES LIABLE. SANDY
SUCHY SECONDED THE MOTION AND WITH NO FURTHER DISCUSSION, THE
MOTION CARRIED.
6. Consideration to adopt a resolution relating to the transfer of HRA project and programs to the
City of Monticello Economic Development Authority.
Koropchak noted the resolution transfers the HRA project and programs (Exhibits A, B, C,
and D.) to the Economic Development Authority. Finalization of the transfer is actually at time
the EDA accepts the HRA project and programs. GIVEN THE DIRECTION OF THE CITY
COUNCIL, DAN FRIE MADE A MOTION TO ADOPT THE RESOLUTION
RELATING TO THE TRANSFER OF HRA PROJECT AND PROGRAMS TO THE CITY
OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY. SANDY SUCHY
• SECONDED THE MOTION AND WITH NO FURTHER DISCUSSION, THE MOTION
CARRIED.
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HRA Minutes -11/07/07
7. Consideration to authorize payment of HRA bills.
DAN FRIE MADE A MOTION TO AUTHORIZE PAYMENT OF THE HRA BILLS.
SANDY SUCHY SECONDED THE MOTION AND WITH NO DISCUSSION, THE
MOTION CARRIED.
8. Consideration of HRA Executive Report.
Koropchak updated the commissioners stating that all four existing commissioners had
responded to the letter of interest to be considered for appointment on the new EDA. Fair,
Frie, and Demeules were interested and Schwientek was not interested. As authorized by the
Council at the October 22 meeting, an ad has been prepared for the city web site and the
Times and Shoppers advertising the positions available on the EDA. Deadline for applications,
November 30. It is the intent for the Mayor and Council to make the appointments of the
seven-member commission at the Council meeting of December 10, 2007.
9. Committee Reports:
a) Marketing. Frie, a member of the Marketing Committee, submitted the cost of membership
MNCAR. With their agent no longer a member, the cost to the committee would be a $250
one-time initiation fee and an annual cost of $1,464.
b) Fiber Optics: Included in Executive Director Report.
10. Adjournment.
DAN FRIE MADE A MOTION TO ADJOURN THE HRA MEETING. SANDY SUCHY
SECONDED THE MOTION AND WITH NO FURTHER BUSINESS, POWER, OR
ASSETS, THE HRA MEETING ADJOURNED AT 6:45 P.M. ~
Ollie Koropchak, Recorder Chair
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