HRA Agenda 02-07-1985AGENDA
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Thursday, February 7, 1985 - 7:00 P.M.
Members: Chairman Gary Mieber, Vic Vokaty, Bud Schrupp, Jack
Reeve, and Ken Maus.
1. Call to Order.
2. Approval of the Minutes of the Regular Meeting Held January 3,
1985.
3. Consideration of HRA Giving Endorsement to a Subsidised
Housing Project for Low to Moderate Income People.
6. Other Business.
5. Adjournment.
Z
MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Thursday, January 3, 1985 - 7:00 P.M.
Members Present: Acting Chairman Gary wieber, Jack Reeve, Bud
Schrupp, and Vic Vokaty.
Also Present: Ken Maus.
Acting Chairman, Gary wieber, opened the meeting and asked for
approval of the 12/6/81 minutes. Jack Reeve moved to approve
said minutes, was seconded by Vic Vokaty, and passed 4-0. Ken
Maus did not vote, as he officially will not be appointed until
1/14/85 by the Council.
wieber suggested that a Chairman be appointed to fill the vacancy
left by Don Cochrane resignation. Jack Reeve moved to appoint
Gary wieber as Chairmen of the Monticello Housing and Redevelopment
Authority for 1985. It was seconded by Vic Vokaty, and passed
4-0. Again, Ken Maus did not cast a vote. Jack Reeve suggested
appointing a Vice -Chairman for 1985. However, the Authority
then tabled the appointment until the 7/7/85 meeting.
Acting Chairman wiabor reviewed the events of the 17/6/86 meeting
at which Mr. Joe Poehler requested the HAA -s endorsement for
his Farmers Home Administration (FmHA) multiple family housing
project. Gary stated that the Authority briefly discussed the
concept of FmHA's not funding garages and the need for a variance.
He further added that the Authority's consensus was that it
was up to the Planning Commicsion to decide the issue. He then
asked if Mr. Poehler was looking for the HRA's endorsement or
recommendation for granting the variance.
Allen Pelvit stated that in discussing this with the City Adslnistrator,
Tom wished to have all governmental bodies be in favor of and
allowing this project to proceed without the construction of
garages. Allen further stated that staff will recommend approval
of this variance request and possibly amending the ordinance
to exclude FmHA projects, etc., from the garage requirement.
In response to a question regarding Reinert Homes low -to -moderate
income housing project on Lauring lane, Allen stated that the
Council did grant both a parking and a garage variance. Vieber
asked if the Reinert project was a FmHA project, and Allen stated
that It was a Minnesota Housing Finance Agency for Section S
Project for low and moderate Income families.
IM
0
RRA Minutes - 1/7/65
Ren Maus stated that he felt the Council would not approve a
blanket change in the ordinance and invite developers to apply
for these types of funding just because it would be a cost savings.
He added that the Council has found that if there was no garage,
storage shed, or basement, etc., on the property, the development
started approaching the same problems as a mobile home park
where storage for odds and ends is a problem. An example would
be the bikes, trikes, the trash cans, and other junk. Ren referred
to the Council having this type of problem with the Meadow Oak
project. It was the Authority's consensus that some places
with garages or storage sheds look terrible, and without garages
they would look even worse.
Allen stated that staff will be recommending approval of the
variance request for no garages and will also include conditions
for assuring neatness.
Bud Schrnpp felt that regardless of what type of government
loan or funding program was used, the City should have soma
control over how or what the development looks like. He felt
that something could be worked out with the garages, but to
eliminate them completely was wrong.
Jack Reeve stated that the HRA was not responsible for making
decisions or trying to sway the planning Commission or the Council's
thoughts on this variance request. He felt the project in clearly
needed and should be presented to the planning commission and
judged on its merits.
Chairman Misber referred to the Reinert Housing project, its
physical layout, and the ability to hide or cover the parking
or storage. Vic Vokaty expressed his opinion that garages should
be required on this project.
Men Maus asked if the requirement for garages was waived, and
in the future the project was sold to other individuals through
conventional means, would there be enough property to construct
the garages. Allen stated that the number of parking spaces
and garages are set in the ordinance and would have to be verified
with Gary Anderson. If, at a later data, the developer wished
to add the garages, there would be adequate space for them.
Again. Allen stated that there are other conditions recommended
by staff attached to the request. He stated that if the garages
were constructed. they could not be funded by TWA and would
have to be funded conventionally. This would elan additional
monthly payments for the tenants.
At thle point, Chairman Mister asked for soma direction from
the Authority. Jack Reeve stated the Authority was originally
-3-
HRA Minutes - 1/1/85
asked for its endorsement of the FwHA fended multiple family
housing project for low and moderate income people and its need.
He felt that the Authority has satisfied that request. Allen
stated that this request for an -HRA recommendation to approve
a variance request cams from the staff and not from Mr. Poehler.
Jack then stated that if City staff recommended the variance,
that was great, but he felt comfortable with endorsing the project
on its need within the City of Monticello.
When asked by Ren Maus if the position of the Authority was
no position, Jack Reeve stated that under Alternative 02, the
Authority could take no action. Chairman Wieber stated that
If no motion is given, in effect the Authority would be taking
a neutral position.
Again, Chairman Wieber asked for direction in the form of three
directions: 1) Recommend approval; 2) Recommend denial; and
2) Take no action. There being no motion, Chairman Wieber
indicated that Allen should pass the results onto City staff.
There being no further business seeding action. Bud 8chrupp
moved to adjourn. It was seconded by Vic Vokaty, and passed
1-0.
I
Allen L. pelvIt
Executive seorstaty of HRA
I
O
V
HRA Agenda 2/7/85
3. Consideration of HRA Giving Endorsement to a Subsidized Housing
Project for Low to Moderate Income People. (A.P.)
A. REFERENCE AND BACKGROUND:
Approximately two months ago, Barthel Homes began a search for
a potential site to locate an apartment complex. After some
time had passed and visite with realtore, etc., Barthel Homes
had selected Lot 5, Block 1, Lauring Hillside Terrace, for their
project.
Sometime after the site location was chosen by Barthel Homes,
the project was abandoned by them and actively picked up by
Metcalf and Larson. This process of originating a project,
only to have them abandon it and have another pick it up, may
be the result of the latter contracting to have Barthel's people
do the leg work, etc., and then have Metcalf and Larson actually
submit the application.
The proposed project is to be funded through Farmer's Home Administration
(FmHA), similar to other subsidized projects that have been
submitted to you in the pant. This project proposes to construct
a 33 -unit, 2/24 story building, and is the same as other proposals
in that they need the endorsement of all government unite.
Metcalf and Larson have indicated that they will deal directly
with the Planning Commission and the City Council in regard
to any variances or conditional use permits for garages, etc.
They do not want the Authority to recommend approval/disapproval
to any other body. At this point, they are only looking for
project or concept approval, which is apparantly mandatory in
FmHA applications.
B. ALTERNATIVE ACTIONS:
1. Give Authority's ondorsomont of a multiple unit apartment
complex for low to moderate income individuals.
2. Do not give your ondorooment to this type of project.
C. RECO=NDATION.,
I personally do not loan ono way or the other with regard to
a project such as this. I would, however, like to strose tho
facts that have been acknowledged in the past. 1) The City
of Monticello, the Housing and Redevelopment Authority in
particular, is aware of a 33 -unit apartment complex to be funded
I
NRA Agenda - 2/7/85
through FmBA; 2) The City is also aware of the lover assessed
valuation that these types of projects receive; 3) The Authority
has seen documentation from a past proposal that there is a
definite need for this type of housing in the Monticello area
and that if built, the complex would be fully rented.
In the pant, you have endorsed proposals with similar backgrounds.
Again. I am not recommending approval or disapproval of the
project concept but merely letting the developer (Metcalf and
Larson) give the facie and you can make your decision based
upon those facts.
D. SUPPORTING DATA:
Copy of endorsement letter; map indicating proposed project
site.
-2-
HRA Agenda - 2/7/85
4. Other Business - Consideration of Establishing a Tax Increment
District. (A.P.)
A. REFERENCE AND BACKGROUND:
This has been on the drawing board for some time, but lack of
information from the City Engineers and replat maps, etc., did
not allow us to proceed. Even at this point, much of the information
is vague, but we want to proceed anyway. As we proceed with
this, information such as exact measurements, dollar amounts,
etc., will become more concrete.
As you know, Construction 5, Inc., owns several parcels of property
just north and east of Lauring Hillside Terrace. The existing
map shows Blocks 41, 42, 47, 48, 49, 50, and 51 as partial blocks,
several of which are unbuildable if left in their present status.
Construction 5, the City, and other parties have been trying
to get the area replatted in such a way as to allow these parcels
to be developed.
At present, Construction 5 has been given a preliminary approval
of their replat by both the Planning Commission and the City
Council. They will be getting the appropriate information together
and requesting final replat approval from the Council in the
near future.
As you can see from looking at the proposed roplat, almost the
entire area can be utilized with this proposal. The City would
benefit and receive some park land in return. Although this
proposal was underway prior to complaints of some area residents,
staff fools the timing is right to service properties near Territorial
Road as well (Doran and Kalono).
In the proposed roplat, Lot 1 would be onlarged in order to
allow for an 18 -unit apartment complex. This parcel would be
assessed on all four aides. Lots 1, 2, 3, and 4 of the proposed
commercial parcel would be assessed by approximately 650 foot.
The assessments will Include sower and water as wall as building
the road through the existing gravel pit.
The intent of this proposal in not to benefit developers by
giving them free sorvicos and a batter chance to develop their
property, but to reduce the coat as much so possible and season
the remaining costo that tax increment financing doesn't generate.
If we do the project and season without the use of tax increment
financing, the project would be too cootly and moot likely abandoned.
Mother reason that the project might be too costly to the City
Is that the City cannot assoes any project more than the increase
7 in value. For example, if the existing proportion were aosoneed
V or appraised at 81,000.00 and after the improvoments they were
HRA Agenda - 2/7/85
valued at $6,000.00, then the City cannot assess those properties
for more than $5,000.00, the difference in the value. The City
is legally bound to stay within those limits.
In this example, we would have to bond for approximately $300,000.00;
and with 1250 In. ft. of improvements, the costs would be approximately
$240.00/ln. ft. In the proposed replat. Lot 4 has 210 feet
of frontage. At $240.00/in. ft., it would cost 550,400.00 for
that piece of property. As you can see, it is very expensive,
if not prohibitive.
The mechanics in their simplest form are as follows:
1. Once all the plans are in place and the City has an
agreement, the $300,000.00 of TIF Bonds are sold;
2. The increment generated by the 18 -unit multi -family
apartment and the warehouse complex is used to pay
off those Bonds;
3. Any shortfall (not enough increment) would be assessed
to the appropriate individuals.
B. ALTERNATIVE ACTIONS:
1. To approve the project concept and authorize staff to order
TIF if warranted. The Authority is naked to hold a special
meeting prior to its regular March 7, 1985, meeting for
the purpose of reviewing the above TIF plan, adopting it,
and requesting the Council to set a public hearing for the
purpose of establishing a Tax Increment District.
2. Take no action, thus eliminating the need to prepare a TIF
plan and also the chance to develop an otherwise useless
sandpit area.
C. STAFF RECOMMENDATION:
Bonafito that aro derived from this project will be folt by
all concerned, but I went you to be alort to the fact that the
City is not giving anything away. No public land is being bought
or sold; tho City io not trying to giro any prcperty c:zcr a
break, but rather the City is trying to lower the City -o oxponoo
of improving this area. The City will be the recipient of a
small parcel of land to be dedicated as a park. The ownoro
of the properties will be given the opportunity to develop othorwico
useless proportion, but will have tax liabilities that will
help make this project p000iblo.
Mora important than the fact that multiple family housing and
commercial properties can be fully developed is improvement
of City services (streets with curb/guttor. City water and newer)
and extension of a City street to an otherwise useless area.
HRA Agenda - 2/7/85
� Staff recommendation is to approve the projects concept and
authorize staff to order the TIP plan if the project warrants
it. We also recommend that you consider calling a special meeting
prior to the regular March 7, 1985, meeting, the purpose of
which would be to approve the TIP plan and request the Council
to set a public hearing, approve the TIP plan, and establish
a Tax Increment District.
D. SUPPORTING DATA:
Existing map; Proposed map.
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3-� -•
_ate MONTKXLLO, MN 66382
Phom (912) 295-2711
Metro (912( 333.5739
Allen L. Pelvit
Executive Director of HRA
ALP/kd
no Sam Brca - ,
Ames e. Dm 63A
mopmesso. 101 "M
Metcalf 6 Larson
Attn: Brad Larson
mr,w��
P.O. Box 446
ClMonticello,
Lows
MN 55362
FFmmA FO
Kwowd Mam
Re: FmHA Multiple Housing Project
JWk
Dear Mr. Larson:
Adrnkrftvabm;
Thank you for your presentation before the Monticello Housing
TonEkWn
and Redevelopment Authority on February 7, 1985.
Fnmea DaecW
R1ek Yvosatalw
After listening to your presentation regarding FmHA and
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the need for such housing projects in Monticello, the Monticello
Pymap A zar":
HRA would like to issue the following statement.
Ory Acne^
Based on the information provided to this Authority at
Its regular meeting on February 7, 1985. we are aware of
such housing projects and fully acknowledge the necessity
for such a project In the City of Monticello.
Again, thank you for your presentation to the BRA and your
development efforts in Monticello. It you have any Questions
regarding this, plosso contact me.
Respectfully,
Allen L. Pelvit
Executive Director of HRA
ALP/kd
no Sam Brca - ,
Ames e. Dm 63A
mopmesso. 101 "M
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Site of proposed project to be
funded through FmHA.
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City 0/ Moak.&
MONMOLLo. ace 55W2
Phone(612) 295.2711
Metro 15121933-5779
Metcalf G Larson
Attn: Brad Larson
Aare P.O. Box ddb
Dente Monticallo, MN 55162
Fret Fair Re: FmHA Multiple Housing Project
Ke wO Mmw
,leek Mmtwea
Dear Mr. Larson:
emkftamor:
Thank you for your presentation before the Monticello Housing
Tom Edam
and Redevelopment Authority on February 7, 1985.
FMnce Carom:
RMkW-d
Prase
After listening to your presentation regarding PmBA and
W101
,)yn gs,ey
the need for such housing projects in Monticello. the Monticello
zo,":
KRA would like to issue the following statement.
Gary darem
N
Based on the information provided to this Authority at
its regular meeting on February 7. 1985. we are ewers of
such housing projects and fully acknowledge the necessity
for such a project in the City of Monticello.
Again, thank you for your presentation to the HRA and your
development efforts in Monticello. If you have any Questions
regarding this, please contact me.
Respectfully.
Allen L. Felvit
6xacutivo Director of HRA
ALP/kd
2Rom ♦. em 643A
Moetl, , WN 05381
250 EM e.eeare7
Row 4. eoe 6.711
Mo ftsk. M% 66362
o f Monfic63L[O
MONTKWLW. 55W2
February 1, 1985
PhWW1614)495-2711
efeeo (612) 3336739
Farmers Some Administration
Metro Square Building
Oreo
St. Paul, M 55101
Cmr
:
Res Monticello 32-Unit Family Sousing Project
Ka 00 Man
Lot 5, Bloc)[ 1
in* umma
LAUAIMG HILLSIDE TERRACE
City of Monticello, Wright County, Minnesota
neerwtreeer;
Gentlemen:
Tom Ebem
Rba Dreefor
On behalf of the Monticello City Council atter the proposal
Nmeo �
of Maeere. Metcalf and Larson with regard to the above-referenced
,)ye, Sineo
proposed multi-family housing project, we would inform
Pwnntrp a Zorwv:
you that we endorse the concept end location of the proposed
Oery Mleereon
project. Please be advised that this endorsement does
not constitute approval of the required conditional use.
Should you have any further questions, please dont hesitate
to contact me.
very truly yours,
Thomas A. Eidem
City Administrator
TAE/kd
cow Metcalf 6 Larson
SRA ---
File File
250 EM e.eeare7
Row 4. eoe 6.711
Mo ftsk. M% 66362
City 4 Monticello
MONTICELLO, MN 55382
Phone (2) 295-2711
Metro 1,12)333-5739
James Ridgeway, Chairman
Monticello Planning Commission
Monticello City Hall
Mays,;
Monticello, MN 55362
Anro GrVnwno
Dante
Dear Chairman Ridgeway:
Fm Fat
Ke,ne" Mwe
Mr. Joe Poshler came before the HRA with a proposal to
.lock Marwed
build a 26 -unit, 2 -story multiple family housing project
funded through Parmers Home Administration. Poehler's
purpose was to get the HRA'e endorsement for submission
Administrator:
Tom Ekem
to FmHA.
Fiance Dtectw:
Rlat Weretelki,
We are aware that FmHA will not fund projects with garages.
Puenc wake:
We are also aware of the City's ordinance requiring one
'1st°' 5"100°
garage for every two units and Mr. Poehler's variance request.
PwrnUq i Zon ft:
Ory AnOmeen
After discussing FMHA loan programs to help low to moderate
income families, this Authority recommends that Mr. Poehler-s
variance request be given serious attention. In our discussions
of subsidized loan programs, we found a variance request
that was granted to the 36 -unit PUD of Reinert Homes, Inc.,
in 1980.
As long as Monticello continues to grow, there will be
a need for additional low to moderate income housing.
With that there will come developers, and with those developers
will come more variance requests. Therefore, the Monticello
Housing and Redevelopment Authority recommonda that your
Commission approve Mr. Poohler'o variance request and allow
his 24 -unit multiple family housing project to be constructed
without garages. Thio Authority further recommands that
the City Ordinance be amended to automatically exclude
PmHA projects, etc., from the garage requirement.
We appreciate your time and consideration in thin matter.
Respectfully,
(W—
Allen L�.lvit
6xecutiva Secretary for HRA
ALP/kd
250 EW 81`08001"
Ran, a, Box a3A
MontbNo. MN 553a2