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.
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Secreta �
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