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HRA Minutes 04-05-2006MINUTES MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY Wednesday, April 5, 2006 Commissioners Present: Chair Darrin Lahr, Steve Andrews, Brad Barger, Bill Fair Commissioners Absent: Dan Frie Council Liaison Absent: Wayne Mayer Staff Present: Rick Wolfsteller, 011ie Koropchak, Angela Schumann Guests: Mike Mahar, President and CEO, Paul Cserpes, Director of Operations, Karlsburger Foods, Inc and Dave Panek, Keystone Design/Build 1. Call to Order. Chairman Lahr called the meeting to order at 6:00 PM, welcoming representatives from Karlsburger Foods. • 2. Consideration to approve the March 1, 2006 HRA minutes MOTION BY COMMISSIONER FAIR TO APPROVE THE MINUTES OF MARCH 1, 2006. MOTION SECONDED BY COMMISSIONER BARGER. MOTION CARRIED 4-0. 3. Consideration of adding or removiniz items from the agenda. NONE. 4. Consent agenda. NONE. 5. Consideration to approve a resolution adopting a modification to the Redevelopment Plan for Central Monticello Redevelopment Project No. 1 and establishing TIF District No. 1-37 therein and adop_ tinR a TIF Plan therefore. Applicant: Karlsburger Foods Koropchak reported that this is an economic TIF District which will run for 11 years, collecting increment for 9 years. Koropchak stated that she had been • working with Karlsburger Foods over the past few months to locate their new 20,000 square foot facility in the new office/industrial park. Koropchak stated that the jobs and wages for Karlsburger are outlined in the report. Koropchak noted that Public Works Director Simola had visited the company's Dayton site and found it compatible with City service systems. The City Council called for a public hearing to adopt the TIF plan. The Council approved the final plat for this development; at this point it needs to be recorded at the County. Koropchak noted that the Planning Commission had also approved their resolution and that the TIF plan is out for comment at Wright County and the School District. Koropchak indicated that the next item for HRA consideration will be to call for special meeting to address the purchase and development contact between HRA and Karlsburger Foods. Panek presented the floor plan and elevations for the proposed Karlsburger building, noting that the site plan had changed a bit. He explained that they haven't chosen the style of pre -cast for the exterior yet, nor had the chosen the ultimate elevation design of the mezzanine level. Barger asked for clarification on what Karlsburger produces. Mahar explained that Karlsburger manufactures soup bases, which are sold via truck to about 3,000 customers, including some in the Monticello area. Karlsburger representatives sell throughout the Midwest and via UPS in 37 states. Barger asked how they found out about Monticello's industrial park. Mahar and Cserpes stated that the billboard had been their primary lead. Mahar stated that Koropchak was a great help in determining their ultimate location. Mahar stated that Monticello's whole package was put together well. They also got a good explanation of what a TIF district is. Lahr noted that they had originally had some difficulty with the site, but allowing business to plat what they need does allow more flexibility. Karlsburger noted that the area is an attractive site. Mahar stated that most of their employees live north of Dayton. Lahr stated that the HRA is happy to have Karlsburger locate in Monticello and encouraged them to communicate with other businesses on the industrial site and to become involved in the community. Barger asked about their construction timeline. Mahar stated that they hope to finish December 8 . Fair asked if the City's schedule would accommodate their schedule. Koropchak stated that it should. Koropchak asked when the plans would be available for staff review. Panek stated that they would be available for the next site review. MOTION BY COMMISSIONER FAIR TO APPROVE A RESOLUTION • ADOPTING THE MODIFICATION TO THE REDEVELOPMENT PLAN FOR CETNRAL MONTICELLO REDEVELOPMENT PROJECT NO. 1 AND ESTABLISHING TIF DISTRICT NO. 1-37 THEREIN AND THE ADOPTION OF THE TIF PLAN THEREFOR. MOTION SECONDED BY COMMISSIONER BARGER. MOTION CARRIED, 4-0. 6. Public Hearing on the Business Subsidy Agreement and Land Sale — Consideration to adopt a resolution approving the Purchase and Redevelopment Contract between the4 HRA and SL Real Estate Holding's LLC, including the business subsidy agreement and land sale. Re -scheduled to April 12. REMOVED. (Public hearing notice was note published.) 7. Consideration to approve a resolution requesting the City Council call fora public hearing on the modification of the TIF Plans for TIF District Nos. 1-2 (Metcalf/Larson) and 1-24 (St. Ben's). Koropchak stated this item asks the HRA to approve a resolution for the City Council to call for a public hearing, which would modify the TIF districts and enlarge the budgets for the Metcalf/Larson and St. Ben's districts. MOTION BY COMMISSIONER BARGER TO ADOPT A RESOLUTION REQUESTING THE CITY COUNCIL OF THE CITY OF MOTNICELLO CALL FOR A PUBLIC HEARING ON A MODIFICATION TO THE TIF PLAN FOR TIF DISTRICT NO. 1-2 AND THE MODIFICATION TO THE TIF PLAN FOR TIF DISTRICT NO. 1-24. MOTION SECONED BY COMMISSIONER ANDREWS. MOTION CARRIED, 4-0. 8. Consideration to approve the election of HRA officers and approve appointment of commissioners to committees. Koropchak commented that at the previous meeting Dan Frie has asked Lahr if he would be willing to chair on his behalf as he knows he has a busy year. Fair asked if perhaps Frie had indicated that he wanted to be Vice Chair. Fair stated that he would like to keep it in the rotation. Lahr asked if they would switch spots. Barger stated he could serve as Chair, although he would prefer Frie would. Andrews also, stated a preference for maintaining the rotation. MOTION BY COMMISSIONER LAHR TO NOMINATE AND ELECT BRAD BARGER AS CHAIR AND STEVE ANDREWS AS VICE CHAIR OF THE HRA FOR YEAR 2006, AND APPROVE APPOINTMENT OF RICK WOLFSTELLER AS SECRETARY -TREASURER FOR 2006. MOTION SECONDED BY COMMISSIONER FAIR. MOTION CARRIED, 4-0. Lahr and Barger state that they are willing to remain on the marketing committee. Andrews will serve as the HRA representative to the fiber optics task force. Koropchak noted that a representative may also need to be involved on the comp plan committee. 9. Consideration to review an accept the year-end financial reports for the HRA General Fund and TIF Fund as prepared by HRA Treasurer Wolfsteller. Re- scheduled to April 12. REMOVED. 10. Consideration to review for amending the HRA Business Subsidy Criteria and HRA Bylaws for possible amendment and to call for a public hearing if determined. Koropchak stated that the amendment is to include within the subsidy criteria a nonrefundable fee submitted in conjunction with the Preliminary Development Agreement. She referred to the recommendations made by the HRA attorneys on this matter. In order to include that item, the HRA has to amend the criteria, which requires a public hearing. MOTION BY COMMISSIONER ANDREWS TO CALL FOR A PUBLIC HEARING ON MAY 3, 2006 TO AMEND THE BUSINESS SUBSIDY CRITERA OF THE MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY. MOTION SECONDED BY COMMISSIONER FAIR. Lahr clarified the copy included was not the copy with the changes. Koropchak confirmed. Barger asked if other districts have been running over the initial deposit. Koropchak clarified that there are two different deposits. The $7,500 deposit is for normal districts. The $10,000 deposit is for the business center. MOTION CARRIED, 4-0. 11. Consideration to approve calling for a special HRA meeting. MOTION BY COMMISSIONER BARGER TO CALL FOR A SPECIAL MEETING OF THE HRA ON WEDNESDAY, APRIL 12, 2006, AT 6.-00 PM. Lahr and Andrews noted that they would not be in attendance. MOTION SECONDED BY COMMISSIONER FAIR. MOTION CARRIED, 4-0. 12. Consideration to authorize payment of HRA bills. MOTION BY COMMISSIONER LAHR TO AUTHORIZE PAYMENT OF THE HRA BILLS. MOTION SECONDED BY COMMISSIONER ANDREWS. MOTION CARRIED, 4-0. 13. Consideration of HRA Executive Director's Report. Koropchak provided her report, stating that Twin City Die Casing will be hosting a grant writing ceremony. She stated that Monticello has been invited to attend a state seminar of regional industrial recruitment targeting; Koropchak stated that she will try to attend. Koropchak stated that on the 19th of April, Sunny Fresh will be receiving the Malcolm Baldridge award in Washington. They will be broadcasting the ceremony live at the Community Center. Koropchak reported that it appears that AVR has accepted the City's offer. There is an agreement prepared and Koropchak has the opportunity to review the document. Koropchak stated that the covenants have only been recorded on the first 35 acres, so AVR would only have to follow the I-2 district requirements. Lahr asked why we would we not assume that the same standards would apply to this property. Koropchak replied that the attorney's letter stated that staff would review their plans. Barger asked what land value is. Wolfsteller replied that it is approximately $1.2-$1.3 million at $2.65 per square foot, plus AVR would receive $1.5 million in cash. Koropchak stated that she, Wolfsteller and the finance department had met with Ehlers to begin going over the TIF budgets. They will be meeting again on the 12th. Korophak reported that she had called Dahlheimers regarding the funding shortfall, they brought in a check today. Koropchak stated that she had been getting numerous calls on the transformation loan program. C, 14. Committee Reuorts. 0 - a. Marketing The marketing committee will meet on the 20�'. b. Fiber Optic Koropchak stated that representatives from the task force sat in on interviews with the three consultants. On Monday night, the task force will make a recommendation on a consultant firm to complete the feasibility study. It will be about $60,000 for the study. 15. Next regular meeting — Wednesday, May 3, 2006 16. Adiourn. MOTION TO ADJOURN BY COMMISSIONER BARGER. MOTION SECONDED BY COMMISSIONER ANDREWS. MOTION CARRIED, 4-0. C, \ Secreta � 0