HRA Agenda 11-06-1991MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, June 12, 1991 - 7:00 PM
City Hall
MEMBERS PRESENT: Chairperson Al Larson, Ben Smith, Everette
Ellison, and Tom St. Hilaire.
MEMBERS ABSENT: Lowell Schrupp
STAFF PRESENT: 011ie Koropchak
GUESTS: Brad Larson, West Prairie Partnership
Pat Pelstring, BDS, Inc.
1. Call to Order.
Chairperson Al Larson called the HRA meeting to order at 7:10
PM.
2. Consideration to Approve the Mav 1. 1991 HRA Minutes.
Tom St. Hilaire made a motion to approve the May 1, 1991 HRA
minutes, seconded by Everette Ellison, and with no comments or
corrections the minutes stand approved as written.
3. Consideration to Hear Potential Redevelopment Area Option
Inclusive of the West Praire Partnership and Gills Property.
Mr. Brad Larson with the West Prairie Partnership appeared at
the HRA meeting upon the request from City Council for HRA
input on the potential swap of properties. The Council being
aware of the HRA's interest to clean-up the area (Gills
property) in close proximity to the 2.4 acres owned by the
Partnership and in consideration of the potential land swap,
wanted to know if the 2.9 acres would serve as a beginning
piece of the puzzle for any fuluty HRA redevelopment plans.
Mr. Larson explained that the partnership has acquired
interest in the Marvin George property (Outlot A, other parcel
in potential land swap) which is in tax foreclosure.
Assessments and taxes against the property are between
$900,000 to $600,000 including delinquent penalties, interest,
etc. In 1970, the construction cost for the public
Improvements was $260,000. Originally, the partnership
presented the city with a plan for residential development on
the 16.7 acres; however, the city declined the plan as the
property is zoned R-3 (Medium Density Residential), the plan
called for a non -permitted amount of driveways onto a
collector road (Country Club Road), and the city needed an
area for ponding.
HRA Minutes
6-12-91
Thereafter, the partnership offered the city the partnership's
currently owned 2.5 acres along West County Road 75 and the
east 6.7 acres of Outlot A for ponding in even exchange for
the west 10 acres of Outlot A for future multi -residential
development and the right to maintain rental collection from
the f reeway sign (a). HRA members inquired of the
partnership's interest to acquire 0utlot A for $250,000 or
$300,000 and dedicate to the city the 6.7 acres for ponding,
and the partnership retain their 2.5 acres along Cty Rd 75.
Mr. Larson responded the partnership wouldn't be interested
because there is no market for multi -residential development
in Monticello presently and potentially not for another five
years. Mr. Larson responded the partnership wouldn't be
interested in a $200,000 acquisition cost as they are not
interested in a cash deal and the city may not be interested
either as no appraisal has been completed.
Mr. Pe lstring reminded the HRA members that the real question
here is the value of the 2.5 acres to the HRA for any
potential redevelopment of the area with its close proximity
to the Gills property. Roropchak questioned whether the
inclusion of the 2.5 acres in addition to the Gille property
would then qualify for a Redevelopment TIF District. The HRA
remained firm in that they consider the Gills property as a
liability and they expect the property to revert back to the
city in the near future.
Tom St. Hilaire made a recommendation to the City Council
that the city obtain an appraisal on Outlot A to establish the
land value and the HRA agreed with the City Council's lack of
interest or desire of an even land swap between the
partnership and the city. Mr. St. Hilaire's recommendation
was a consensus of the HRA members.
Consideration to adopt a resolution for modification of the
Redevelopment Plan relatinq to Redevelopment Procct No. 1,
the modification of TIF Plans relatina to TIF District Nos. 1-
1 through 1-12t and the approval and adoption of the TIF Plan
relatina to TIF District No. 1-13, all located within
Redevelopment Proiect No. 1.
Roropchak reported that the executed Letter of Intent as
drafted by the City Attorney and a commitment fee of $5,000
have been received from Shingobee, Inc., and the preliminary
building and site plans have been reviewed and adopted by the
City Building Inspector and OSM. A copy of the land
commitment between the developer and the Oakwood Partnership
Is yet to be received. The HRA inquired of the risk to the
HRA or the city, actual risk to the city is virturally none as
the commitment fee of $5,000 should cover the coat for BDS,
HRA Minutes
6-12-91
Inc. (agreed to one-half their normal $3,600 fee) for
preparation of the TIF Plan and District, and other costs will
include the preparation of the Development Agreement and
publication of public hearing notices. If the project is not
successful (no qualified leasee is found within one year) the
developer's commitment fee will cover the preparation costs
and if the project is successful the commitment fee will be
returned to the developer and the preparation fees are then
covered within the TIF Budget.
Pat Pelstring reminded th$t HRA that the major renegotiation
issue of no leasehold improvement costs to a leasee were
resolved and the leasehold improvement costs are now
incorporated within the TIF Budget as project costs. The
financial method is pay-as-you-go, therefore, the city will
not bond for the project. The maximum rental reduction cost
is $.90 per square foot with a suggested allowance of S.15 per
square foot for the TIF or HACA Penalty, this leaves an actual
rental reduction to the leasee of $.75 per square foot which
should be incorporated into the Development Agreement.
Tom St. Hilaire made a motion to adopt the resolution for
modification of the Redevelopment Plan relating to
Redevelopment Project No. 1, the modification of TIF Plane
relating to TIF District Nos. 1-1 through 1-12, the approval
and adoption of the TIF Plan relating to TIF District No. 1-
13, all located within Redevlopment Project No. 1, and
requesting the City Council call for a public hearing date of
July 22, 1991. The motion was seconded by Ben Smith and
without further discussion the motion passed unanimously.
5. Consideration to set a policy to recapture the HACA Penaltv
Payment for Shinqobee, Inc. District with recommendation to
the Citv Council.
Based on Hr. Pelstring recommendation, Everette Ellison made
a motion to incorporate into the Development Agreement between
the HRA and Shingobee, Inc. that the RACA Penalty be the
responsibility of the developer which is allowable and
accountable within the maximum S.90 per square foot assistance
of TIF Plan and Budget. Tom St. Hiliaire seconded the motion
and without further dicussion the motion passed unanimously.
6. Consideration to review an Updated Report on the TIF Reserve
Funds as Prepared by BDS. Inc.
Pat Pelstring informed the HRA that he recently received the
information from Wright County necessary to prepare the
detailed report on TIF reserves. The report will be submitted
for the July meeting.
HRA Minutes
6-12-91
7. Consideration of an updated report on Aroolax and Maid of
Scandinavia.
Koropchak reported that the City Council approved the TIF Plan
and District No. 1-12 for Aroplax and she anticipates EDA
review and approval for the GMEF this month.
President Dahlquist of Maid of Scandinavia was definitely
interested in a Performance Purchase Agreement for acquisition
of the HRA -owned industrial lot. He has received the
topography maps and contact information on the Ron and Lee
Johnson property. Koropchak is to contact him after the 4th
of July.
S. Other Business.
None.
9. Adiournment.
The HRA meeting adjourned at 8:10 PH by censensus of its
members.
\< 01 o � _Q1-9--->
011ie Koropchak, HRA Executive Secretary
S
AGENDA
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, November 6, 1991 - 7:00 PM
City Hall
MEMBERS: Chairperson Al Larson, Ben Smith, Lowell Schrupp,
Everette Ellison, and Tom St. Hilaire.
STAFF: Rick Wolfsteller, Jeff O'Neill, and 011ie Roropchak.
1. CALL TO ORDER.
2. CONSIDERATION TO APPROVE THE AUGUST 21, 1991 HRA MINUTES.
3. CONSIDERATION TO DISCUSS FOR POSSIBLE AUTHORIZATION THE
RECOMMENDATIONS MADE BY RDS, INC. OF THE TIP FINANCIAL
ANALYSIS.
a) Allocation of Administrative Expenses.
b) Additional Debt Service Reserve.
c) Negotiations of City Loans - Lots S 6 6.
0. CONSIDERATION TO DISCUS3 FOR POSSIBLE RECOMMENDATION OF THE
CHELSEA LAND USE AND CIRCULATION STUDYMONCEPTUAL AREA PLAN.
5. CONSIDERATION TO ESTABLISH 1992 HRA GOALS.
6. CONSIDERATION OF AN UPDATE ON THE AROPLAX CORPORATION PROJECT.
7. OTHER BUSINESS.
B. ADJOURNMENT.
2
MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, August 21, 1991 - 7:00 PM
City Hall
MEMBERS PRESENT: Chairperson Al Larson, Ben Smith, Lowell
Schrupp, Everette Ellison, and Tom St.
Hilaire.
STAFF PRESENT: 011ie Roropchak.
STAFF ABSENT: Rick Wolfsteller and Jeff O'Neill.
GUEST: Pat Pelstring.
1. CALL TO ORDER.
Chairperson Larson called the HRA meeting to order at 7:02 PM.
2. CONSIDERATION TO APPROVE THE JUNE 12, 1991 HRA MINUTES. '
Tom St. Hilaire made a motion to approve the June 12, 1991 HRA
minutes, seconded by Ben Smith, and without additions or
corrections the minutes were approved as written.
3. CONSIDERATION TO HEAR TIF ANALYSIS REPORT AS PREPARED BY BDS,
INC.
Pat Peletring summarized the HRA -TIF Financial Analysis by
stating the report includes the eleven HRA -TIP districts but
doesn't include Aroplax and Shingobee, Inc. Also, the City's
Lincoln Company District is not included.
Each district was analyzed and a cover sheet identifies the
combined revenues of all districts with assumed continued
payment of property taxes. Ten percent of the increment was
eat-aeide for administrative expenses such as marketing,
ongoing project management, appropriate city staff time, and
other related TIF costa. Additionally, SI of the increment
was set-aside for bond reserve and no inflationary increases
or accumulated investment earnings were included.
Mr. Polstring concluded that the HRA -TIF statue was good with
$1.5 million in available excess increments which could be
utilized to fund additional public improvements, or provide
additional project support. He reminded the HRA to keep an
eye on the over -done Remmele district.
HRA MINUTES
B-21-91
Mr. Pelstring's recommendations were for the allocation of
administrative expenses, establish a 10% debt service reserve,
negotiate a city loan for lots 6 and 7, and to recognize that
additional development within existing districts may provide
additional excess increment.
The HRA members thanked Mr. Pelstring and recommended the TIF
Financial Analysis be presented to the City Council.
4. CONSIDERATION TO REVIEW DEVELOPMENT AGREEMENT BETWEEN THE HRA
AND SHINGOBEE, INC. AS PREPARED BY ATTORNEY BOB DEIRE.
Tom St. Hilaire made a motion to accept the development
agreement as prepared by Attorney Deike, seconded by Everette
Ellison, and without further discussion the motion passed
unanimously.
CONSIDERATION TO REVIEW PRELIMINARY DRAFT OF THE DEVELOPMENT
AGREEMENT BETWEEN THE HRA AND AROPLAX, INC. AS PREPARED BY
ATTORNEY JOHN DEAN.
Tom St. Hilaire made a motion to accept the preliminary draft
of the development agreement as prepared by Attorney John
Dean, seconded by Everette Ellison, and without further
discussion the motion passed unanimously.
6. CONSIDERATION TO HEAR OF PROSPECT UPDATE.
Roropchak reported that the OMNI Board approved the SBA
application for Axoplax Corporation, however, the company has
not determined its bank commitment.
G 6 G Oil Company - this company purchases, refurbishs, and
sales used gasoline dispensers. The company plans are for a
30,000 square foot office/production building on a five acre
parcel. One to two acres would be tieeded for outdoor storage.
The visitng committee and the IDC both recommended to proceed
with caution and to suggest the use of TIF to control the
potential of unsightly outdoor storage by providing TIF funds
to cover screening plus green planting costs. About 30 jobs
are projected with wages between $6.50 and {12.50. Mr.
Pelstring was familiar with the company and indicated since
than the company since hired a new CEO.
Roropchak prepared a site request proposal for a semi-
conductor company in Oregon looking to employ 1,000 to 2,000
people. Total square footage initially 490,000 aq ft with
completion total of 750,000 sq ft. The requested acreage was
100, the Farm Credit property was marketed.
HRA MINUTES
8-21-91
7. OTHER BUSINESS.
None.
8. ADJOURNMENT.
Chairperson Larson entertained a motion to adjourn, seconded
by Tom St. Hilaire, the HRA meeting adjourned at 8:00 PM.
0 99..d Nr'Oq — �
� t-
011ie Roropchak, HRA Executfve Director
HRA Agenda
11-6-91
Consideration to discuss for possible authorization the
recommendations made by BDS. INC. of the TIP Financial
Analysis.
A. Reference and Background.
At the August HRA meeting you reviewed the TIF Analysis
as prepared by BDS, Inc. The total excess increment for
the existing eleven districts over the life duration of
the districts was projected to be approximately $1.5
million after the recommended administration expenses and
reserve funds were withheld.
In an oversight, the $260,000 bond issue for TIF District
i2 was omitted, therefore, Nr. Peletring has re -run the
TIF summary for the HRA prior to any action of his
recommendations. The HRA is being asked to discuss the
recommendations and if so desired to authorize staff to
develop policies applying to those issues.
1. ALLOCATION OF ADMINISTRATIVE EXPENSES - The city
has the opportunity to offset staff time and
potentially provide additional marketing dollars
through the substantial available administrative
income, as indicated by these projections. A
determination of city policy for the expenditure of
these expenses should be developed and implemented
within the next 6-12 months.
This can be 10% of the total project income which
would be transferred to an HRA revenue account.
ADDITIONAL DEBT SERVICE RESERVE - The anticipated
cash flow from the TI program suggests that the
city has some opportunities to fund additional
public improvements projects. It would be
important first however, to develop a policy to
establish a reserve level for future potential
defaults and/or slow payment of taxes. We would
recommend that the city set aside an additional 10
percent of anticipated debt service costs each year
as an accumulating reserve.
NEGOTIATIONS OF CITY LOANS, LOTS S AND 6 - The HRA
should negotiate a specific payback on this debt
obligation of $136,000. Suggested was 8 percent
over 10 years for an annual debt service of
$20,268. Should the HRA determine to sell any of
this property in the future, the land sale income
HRA Agenda
11-6-91
would be over and above any projected excess
increment and any resulting development would again
increase the amount of excess increment.
B. Recommendation.
Recommendation is for the HRA to review and discuss each
above suggestion. The purpose of the financial analysis
Is to assist with the planning of the City Budget (HRA
Funds) through the adoption of established policies.
Supporting Data.
Copy of the adjusted TIF Summary.
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HRA Agenda
11-6-91
4. Consideration to discuss for possible recommendation of the
Chelsea Land Use and Circulation Study/Conceptual Area Plan.
A. Reference and Background.
The information included was prepared by Northwest
Associates, Inc., the professional planner who made the
presentation at the All -Government Units meeting held
last June. The major change appears on the Farm Credit
property to the south of I-94 and to the north of the
school property. This property is currently zoned I-1
(Light Industrial) and is proposed for Light
Industrial/Business Campus. Another change Is Thomas
Park located to the south of I-94 and north of Thomas
Park Drive. The property is currently zoned B-2 (Limited
Business) and is proposed for I-1. Mr. O'Neill plans to
be present at the HRA meeting to review the concept and
ask for your comments or recommendations. If Mr. O'Neill
is unable to attend the HRA meeting, it is his wish for
you to call him (294-2711) for questions, comments, or
recommendations prior to the Public Hearing of the
Planning Commission scheduled for December 3, 1991.
�. Please review for discussion.
B. Supportinq Data.
Proposed land use maps and ordinance.
ORDINANCE AMENDMENT NO.
THE CITY COUNCIL OF MONTICELLO, MINNESOTA, DOES REMY ORDAIN THAT
THE FOLLOWING CHAPTER BE ADDED TO TITLE 10, THE MONTICELLO ZONING
ORDINANCE, AS FOLLOWS:
CHAPTER 15A
"BC" BUSINESS CAMPUS DISTRICT
SECTION:
15A-1: Purpose
15A-2: Permitted Uses
15A-3: Permitted Accessory Uses
15A-4: Conditional Uses
15A-5: "BC" Design and Site Plan Standards
15A-1: PURPOSE: The purpose of the Business Campus District is
to provide for the establishment of limited light
industrial business offices, limited light manufacturing,
wholesale showrooms and related uses in an environment
which provides a high level of amenities, including
landscaping, perservation of natural features,
architectural controls, and other features.
15A-2: PERMITTED USES: The following are permitted uses in a
"BC" District:
(A) Radio and television
(B) Research laboratories
(C] Trade school
(D] Machine shops
(E) ' Paint mixing
(4kiwo ,! .... _ . I Erma ;9
(G) warehouses
(H) Laboratories
(I] Essential Services
[J] Governmental and public utility buildings
[R] Manufacturing, compounding, assembly, or treatment
of articles or merchandise
(L] Manufacture of musical instruments, novelties, and
molded rubber products
(M] Manufacture or assembly of electrical appliances,
instruments, and devices
[NJ Manufacture of pottery or other similar ceramic
products using only previously pulverised clay and
kilns fired only by electricity or natural gas
a (O] Manufacture and repair of electrical signs,
advertising structure, light sheet metal products,
including heating and ventilation equipment
Ordinance Amendment No.
Page 2
(P] Blacksmith, welding, or other metal shop
(Q] Laundries, carpet, and rug cleaning
[R] Bottling establishments
[S] Building material sales and storage
(T] Broadcasting antennae, television, and radio
[U] Camera and photographic supplies manufacturing
(V] Cartage and express facilities
(W] Stationery, bookbinding, and other types of
manufacturing of paper and related products but not
processing of raw materials for paper production
(%] Dry cleaning establishments and laundries
electrical and electronic products manufacture,
electrical service shops
(2] Engraving, printing, and publishing
[AA] Jewelry manufacturing
[BB] Medical, dental, and optical laboratories
[CC) Storage or warehousing
(DD) Wholesale business and office establishments
(EE) Commercial/professional offices
[FF] Wholesale showrooms
(GG] Conference centers
(HH] Commercial printing establishments
15A-3: PERMITTED ACCESSORY USES: The following are permitted
accessory uses in a "BC" District:
(A] Commercial or business buildings and structures for
a use accessory to the principal use but such use
shall not exceed thirty ( 30 ) percent of the gross
floor space of the principal use:
1. The parkinq requirements of Chapter 3,
Section 5, are complied with in full.
2. The off-street loading requirements of
Chapter 3, Section 6, are complied with in
full.
I5A-4: CONDITIONAL USES: The following are conditional uses in
a "BC" District: (Requires a conditional use permit
based upon procedures set forth in and regulated by
Chapter 22 of this ordinance.)
(A) Open and outdoor Storage as an accessory use
provided that:
G
Ordinance Amendment No.
Page 3
1. The area is fenced and screened from view of
neighboring residential uses or, if abutting a
residential district, in compliance with
Chapter 3, Section 2 (G], of this ordinance.
2. Storage is screened from view from the public
right-of-way in compliance with Chapter 3,
Section 2 (G], of this ordinance.
3. Storage area is grassed or surfaced to control
dust.
4. All lighting shall be hooded and so directed
that the light source shall not be visible
from the public right-of-way or from
neighboring residences and shall be in
compliance with Chapter 3, Section 2 (H], of
this ordinance.
5. The provisions of Chapter 22 of this ordinance
are considered and satisfactorily met.
1 (B] Industrial planned unit development as regulated by
Chapter 20 of this ordinance.
(C) Indoor limited retail sales accessory to office/
manufacturing uses provided that:
1. Location:
(a) All sales are conducted in a clearly
defined area of the principal building
reserved exclusively for retail sales.
Said sales area must be physically
segregated from other principal
activities in the building.
(b) The retail sales area must be located on
the ground floor of the principal
building.
2. Sales Area. The retail sales activity shall
not occupy more than fifteen (15) percent of
the gross floor area of the building.
3. Access. The building where such use is
located is one having direct access to a
collector or arterial level street without the
necessity of using residential streets.
G
g
Ordinance Amendment No.
Page 4
Hours. Hours of operation are limited to
8:00 a.m. to 9:00 p.m. The provisions of this
section are considered and satisfactorily met.
15A-5: "BC" DESIGN AND SITE PLAN STANDARDS: The following
minimum requirements shall be observed in the "BC"
District subject to additional requirements, exceptions
and modifications set forth in this chapter:
(A] Lot Coverage. Not less than thirty (30) percent of
the lot, parcel, or tract of land shall remain as a
grass plot including shrubbery, plantings, or
fencing and shall be landscaped.
(B) Building Type and Construction and Roof Slope
Any exposed metal or fiberglass finish on all
buildings shall be limited to no more than
fifty (50) percent of any one wall if it is
coordinated into the architectural design.
Any metal finish utilized in the building
shall be aluminum of twenty-six (26) gauge
steel, the roof slope shall be limited to a
maximum of one (1) in twelve (12) slope.
2. In the "BC" District, all buildings
constructed of curtain wall panels of finished
steel, aluminum, or fiberglass shall be
required to be faced with brick, wood, stone,
architectural concrete case in place or pre -
case panels on all wall surfaces.
(C) Parking. Detailed parking plans in compliance with
Chapter 3, Section 5, shall be submitted for City
review and approved before a building permit may be
obtained.
(D) Loading. A detailed off-street loading plan,
including berths, area, and access shall be
submitted to the City in conformance with the
provisions of Chapter 3, Section 6, for review and
approval prior to issuance of a building permit.
(E) Landscaping. A detailed landscaping plan in
conformance with Chapter 3, Section 2 (G], shall be
submitted to the Council and approved before a
building permit may be obtained.
Ordinance Amendment No.
Page S
[FJ Usable Open Space. Every effort shall be made to
preserve natural ponding areas and features of the
land to create passive open space.
[G) Signage. A comprehensive sign plan must be
submitted in conformance with Chapter 3, Section 9.
Lot Requirements: Lot Area - 30,000 sq ft
Lot Width - 100 feet
Setbacks: Front Yard - SO feet
Side Yard - 30 feet
Rear Yard - 40 feet
Adopted this 14th day of October, 1991.
mayor
City Administrator
IF
City of Monticello Chelsea Area Land Use and Circulation Study
rte.
Zoning
Changes
R•1 Single Family
0-! Invited Busmss
PZR Peltowmance Zarc • Residential
0.7 Highway Busness
BC Business Campus 0.4 Regional Business
City of Monticello
Chelsea Area Land Use and Circulation Study
Existing Zoning
R-1 Sngk Famit
8•2 l:nited Business
R -PUD Re%Wential
JOO J Planned Unit Development 8.1 Highway Business
R•J nsobae Home Park
1-t light h+dusvial
AO Agrkultural/Open Space 1.2 Heavy Industrial
PI -M Pe fwmance Zwu•Mised