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HRA Minutes 01-06-1988CMINUTES MONTICELLO HOUSING AND REDEVELOPEMNT AUTHORITY MEETING Wednesday, January 6, 1988 - 7:OOAM City Hall Members Present: Chairperson Ken Maus, Lovell Schrupp, Ben Smith, and Everette Ellison. Members Absent: Al Larson. 1. CALL TO ORDER. Chairperson Ken Maus called the HRA meeting to order at 7:03 AM. 2. APPROVAL OF THE DECEMBER 2, 1987 HRA MINUTES. Everette Ellison made a motion to approve the December 2, 1987 BRA minutes With Ben Smith second to the motion and with no further discussion the motion passed 4-0. 3. CONTINUATION OF THE ELDERLY HOUSING CONCEPT. Koropchak explained to the HRA members that Mr. Dan Carlson of Foster, Franzen, and Carlson had given her information he received from a Mr. Bill Haldy of Monticello. The information was from Realife Cooperative of Mankota which appealed personally to Mr. Haldy's housing needs and also indicated Realife / Cooperative's interest for such a project in the Minneapolis northwest suburbs/area. However, as per the NRA goals the committee will proceed to accomplish or explore it's first priority of elderly housing needs/options. Koropchak then presented the HRA members with a townhouse design prepared by Johnson, Sheldon, and Sorensen Architects, Inc. based on the input Mr. Sheldon received at the joint meeting with the BRA on December 8th. The general response from HRA members was good but a few comments were made about the two baths, 3 bedrooms, and double garages. Koropchak reminded the committee this was only a preliminary design and we must keep in mind our target investors. This particular design would need a one foot reduction per width of each six inside units inorder to accommodate the required setbacks allowed by the city if constructed on a portion of Block 33 with front doors facing Cedar Street. Other block options discussed were Block G and Blocks 11 and 13 on the vest side of Highway 25. The HRA needs to consider comparable cost to purchsee vacant land versus the coat to purchase land and building which would mean demolition coat therefore raising the purchase price per townhouse unit. Ken Maus estimated the cost to purchase the three homes on Block 33 to be aoproximatnly ;160,000.00-5175.000.00. Ker. C asked Koropchak to check the appraisal of Block 13 which the City had appraised some years ago. The HRA role would be to convey the concept to the present property owners, negotiate a purchase (three to six months option on property, possible trade, etc.), acquire and demolish property, and sell to a developer/builder. Ben Smith is to contact the Crandall's NRA Minutes — 1/6/88 ( 3. CONTINUED. \ and the Lindberg's for their input or expressed interest. Koropchak is to call Elk River Realty for the selling price of the Olson property, to check with local contractors for interest of concept, and to check with local banks for general guidelines for approved financing. 4. CONSIDERATION OF THE STATUS OF THE IRI PROPERTY. In addition to the reference and background information written in the agenda supplement on the IxI property, Koropchak reported to the HRA members that a Certificate of Sheriff (foreclosure time exceeded) has been placed on the property for $425,000.00, however, I assume this is for total buildings and Lot 7 only, as this bank does not hold the mortgage on Lot 6. The committee agreed with Mr. Wolfsteller and myself to have the City Attorney review the matter. With the HRA being informed that no written agreement regarding the landscaping and berming could be found, the HRA dismissed the agreement as a small matter. The HRA option to hold Lot 5 for five years for the Johnsons expires December, 1987, and because the Johnsons have defaulted on the Tax Increment Development Contract the HRA retains the Lot 5 property. Although, the HRA has invested at this time an approximate total of $103,745.70 for Lot 5 or $16,169.84 per acre inorder to market the property and to remain competitive the HRA may need to absorb the loss. 5. OTHER BUSINESS. Koropchak advised the HRA members of a request by Mr. David Hornig for a letter from the HRA on the award of the Lucius Johnson property for a low to moderate income elderly and family housing development. This part of an application process for FmHA funding and is similiar to the request by Metcalf and Larson. The committee advised Koropchak to contact Metcalf and Larson of Mr. Hornig's request and as both projections are of equal feasibility and at the same stage the HRA remains unbias to either developer and to address both letters. Koropchak informed the HRA of the Housing Voucher Questionnaire received from HUD and asked the HRA of it's interest. The committee didn't see the need to provide additional rental housing subsidies to the very low income families, however, felt is may be more appropriate for the county. 6. ADJOURNMENT. The HRA meeting adjourned by consensus of the committee at 8:30 AM. \<,e, GRI 011ie Koropchak HRA Executive Secretary HRA Agenda - 1/6/88 3. CONTINUATION OF THE ELDERLY HOUSING CONCEPT. A. REFERENCE AND BACKGROUND. A brief summary of the informational meeting held December 8, 1987 between the HRA and Mr. Al Sheldon is enclosed as supporting data. Last week Mr. Sheldon stopped by my office with copies of a design plan which was prepared as a result of that meeting. Also, Mr. Dan Carlson of Foster, Franzen, and Carlson Agency, dropped off some information he had received from a Mr. Bill Haldy of Monticello. The information was on Reallfe Cooperative of Mankota. Mr. Sheldon and myself are both in the process of contacting Mr. Haldy. The HRA needs to do some homework; I will work with Gary Anderson, Zoning Administrator, and present additional site options for the NRA meeting. I called 011ie Krahl, Monticello - Big Lake Nursing Home, for her opinion of the NRA goal of three types of elderly housing needs in Monticello. She is in complete agreement with the HRA and would be happy to work with us at any time. Also, the HRA needs to address questions C, D, and E as summarized from the meeting notes. Further information will be presented at the RRA meeting. 4. CONSIDERATION OF THE STATUS OF THE IXI PROPERTIES. A. REFERENCE AND BACKGROUND. Tax Increment Finance District 91 was created in 1982 for Ron and Dee Johnson or IXI and included the acquisition of Lot 7, Block 3, Oakwood Industrial Park by the HRA with conveyance in two transactions: a) The East 180 feet of Lot 7 in 1982 and b) the remainder of said lot . 1983-84. TIF District 91 was modified in April, 1984 to include only portion a) of the above. TIF District 94 was created in 1984 for the HRA to acquire the Westerly one/half of Lot 7 and the North 175 feet of the East one half of Lot 7. HRA loan from the City for Lot 7 was $73,501.67 ($58,600.00 plus $14,910.67 to pay off the current assessments against the property. According to City Council minutes of 8/22/83 a loan to the HRA for $154,800.00 was approved for the purchase of Lots 5 and 6. (See Supporting Data). Lot 6 sold to Ron and Dee Johnson on October 1984 for $15,500.00. As for the written agreement to begin landscaping and berming around lots 5 6 6 between the HRA and the Johnson's, I cannot locate at this time. I have found HRA minutes and City Council minutes which address the Issue. The appraisal done for the Johnson's was appraised at $1,000,000.00 for Lots 6 and 7 (land and buildings); however, Mr. Bob Smith informed me the mortgage they hold NRA Agenda — 1/6/88 on the property is for the building and Lot 7 only. Therefore, need to do more research about Lot 6. Rick Yolfatelier provided these figures on Lot 5 which was held in option. Initial investment was $77,400.00 plus total interest paid to date (12/31/87) of $26,345.70 for total of $103,745.70. Approximate lot size of 650 x 430 or 6.416 acres. This computes out for the RRA to fully recover investment cost we would have to ask for $16,169.84 per acre. This total cost of $103,745.70 does not include the additional interest the HRA could have collected on the interest the HRA has paid out. Asking price by the Oakwood Industrial Park through December 1987 was $13.000.00 per acre. It is in the opinion of Rick Nolfsteller and myself that the matter should be reviewed by an attorney.