HRA Minutes 02-26-1988MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY SPECIAL MEETING
Friday, February 26, 1988 - 8:OOAM
City Hall
Members Present: President Ken Maus, Lovell Schrupp, Ben Smith,
and Al Larson. Administrator Rick Wolfsteller.
Members Absent: Everette Ellison.
The special HRA meeting was called to order by President Ken Maus.
The committee was updated on the status of the option agreements.
The Stelton's made a counter-offer of $65,000.00 on a purchase
agreement inclusion of relocation and moving expenses and contingencies,
the HRH's original option agreement was $58,000.00 inclusion of
relocation and moving expenses and contingencies. The option agreement
on the Jones' property was executed at the original offer of $57,000.00.
O'Connor's counter-offer of $55,000.00 is for raw land inclusion of
demolition of said building according to city specifications,
relocation and moving expenses and contingencies with exclusion of
seller paying off current and remaining balance of assessments.
The HRA's original option agreement was $47,000.00 inclusion of
relocation and moving expenses and contingencies.
A motion was made by Lovell Schrupp for the HRA President and
BRA Director to execute the option agreements for Jones' property
at $57,000.00 ($52,000 for property and $5,000 for R&M Expenses)
and for the O'Connor's counter-offer of $55,000.00 ($50,000 for
raw land, building demolished according to city specifications and
$5.000 for R&M Expenses). The HRA counter -offered Stelton's
$65,000.00 ($60,000 for raw land, they negotiate demoliton contract
and $5,000 for R&M Expenses). The HRA granted Pres. Maus the power
to negotiate the HRA's counter-offer and if not acceptable by the
Stelton's to execute the original purchase agreement offer by
Stelton's. The motion was seconded by Al Larson and passed 4-0.
Lowell Schrupp offered his support of further HRA decisions as he
had to leave the meeting.
Metcalf and Larson had drafted an option agreement (Supporting Data)
between Broadway Square Limited Partnership (OPTIONEE) and the
Monticello Housing and Redevelopment Authority (OWNER) for Lots
1, 2, 3, 4, and 5 and the South 15 feet of Lot 15, Block 51,
Original Plat of Monticello. The HRA reviewed the option agreement
and agreed on the following additions or changes. Al Larson
made a motion to 1) under terms and conditions 91 to read the total
purchase price to be paid to the OWNER shall be $67,200.00
(28 x $2,400.) and so on; 2) under terms and conditions 98 to read
all parties hereto are advised and are on notice that the OPTIONEE
intends to use the premises herein for the purpose of at least
a 28 -unit elderly development and so on; and 3) under terms and
conditions the addition of 911 to read this agreement is contingent
upon the OWNERS obtaining approval for Modification 93 of the
Tax Increment Finance Plan for Redevelopment District 92. The
motion was seconded by Ben Smith and passed 3-0.
ARA Minutes - 2125188
CONTINUED.
Administrator Wolfsteller suggested an additional term and
condition for ARA protection to read that if for some unknown
reason the ARA (OWNER) did not secure option agreements on the
properties of Stelton's, O'Connor's, and Jones' on or before
March 15, 1988 that the OPTIONEE agrees to void the said agreement
and not take legal action against the OWNER. gen Smith made this
a motion and Al Larson seconded the motion. With further discussion
to include that the above motion be inacted only upon legal
counsel support. Motion passed 3-0.
Koropchak is to make the above add it Lone and changes, thereafter,
deliver the option agreements to Metcalf and Larson's office
for approval. At this time, executed documents from O'Connor
and Steltons have not been returned to Koropchak's office.
011ie Koropchak
ARA Executive Secretary
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MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY SPECIAL MEETING
Friday, February 26, 1988 - 12:15PM
Golden Valley Furniture
Members Present: President Ken Maus, Lowell Schrupp, Ben Smith.
and Al Larson. Administrator Rick Wolfsteller.
Members Absent. Everette Ellison.
Koropchak reported that she had met with Brad Larson regarding
the HRA's additions and changes to the Option Agreement between
the Broadway Square Limited Partnership (OPTIONEE) and the
Monticello Housing and Redevelopment Authority (OWNER). Metcalf
and Larson agreed to all the NRA additions and changes except
would not agree to the increased figure of $67.200.00 under
terms and conditions O1. Koropchak explained the rationale of
the HRA's request of $67,200 to be paid the OWNER which was
based on the numbers working out at the current negotiable
purchase prices for properties, these numbers becoming very
close. Koropchak and Mr. Larson reworked the numbers in Mr.
Larson's office and Mr. Larson agreed that the projected
project costs of the district and the projected tax increment
would be very close. however, checking with Mr. Metcalf, the
partnership remained firm on the payment of $56,000.00.
Koropchak indicated she would need to return to the HRA for
their decision.
Administrator Wolfsteller said that within the Development
Contract between the developer and the HRA, it states that
such a site building will be constructed and will generate
such amount of tax increment based on the assessed value
placed on the building by the county assessor. Within this
contract a contingency can be included that if for some unknown
reason the stated tax increment is not generated (example:
mill rate decreases), for those years only, the developer
will pay such difference for the duration of the said
debt service.
Lowell Schrupp made a motion to accept the total purchase price
to be paid to the OWNER shall be $56,000, or the amount determined
by FmRA for mortgage purposes, whichever is greater. This under
terms and conditions 01 of the above said Option Agreement.
Ben Smith seconded the motion. Discussion included the noting
of such said contingencies to be included within this
development contract. Motion passed 4-0.
Koropchak will meet with Metcalf and Larson, have the said option
agreements executed by President Ken Maus and herself, and return them
/ to Metcalf and Larson's office on this date to meet the FmHA
(\ application deadline date of March 1, 1988.
011ie Koropchak, NRA Exec ive Secretary