HRA Agenda 11-07-1985MINUTES
Housing and Redevelopment Authority
Thursday, October 10, 1985 - 7:00 PM
Members Present: Chair Gary Wieber, Bud Schrupp, Ren Maus, and
Roger Hedtke.
Members Absent: Ben Smith
Assisting as Staff Representative was: Tom Eidem, City Administrator
Chairperson Wieber called the HRA meeting to order. Schrupp moved
to approve the September 5, 1985 Minutes, seconded by Hedtke.
Vote was three in favor, and one abstention. Maus indicated his
abstention because of absentee from meeting.
The first item on the agenda was the adoption of the Tax Increment
Finance (TIF) Proposal and Veit's "Raindance" Plan Proposal; and
requesting the City Council to set a Public Hearing. Chairperson
Wieber highlighted the history of the Veit Project.
Tom Godlewski (Veit Construction) presented a proposal site study
of the Raindance Project. The site study indicated building plans,
parking, and traffic patterns. Concern from Godlewski was
sufficient parking space. Eidem presented a street proposal,
defining the construction of Sixth Street and installation of an
interceptor sewer. Eidem responded to questions of congested
traffic on Highway 25. Flow of traffic will be controlled by the
planned installation signal lights at the Perkins intersection
and signal lights at Highway 25 and Broadway. Reconstructed
Highway 25 will be a two-lane through street. Responding to
Schrupp's question of a possible left turn lane from north
Highway 25 at 5J Street entrance. Eidem explained Min/DOT's
refusal as traffic congestion and construction difficulties caused
by a short distance between the Burlington Northern Railroad
tracks and the Perkins intersection. Maus expressed his opinion
that community traffic would adapt to the most efficient traffic
pattern bonefical to themselves through the use of Cedar Street
entrance/exists; Parkin controlled intersection; and Sixth and
Five and one-half Street entrance/axists on Highway 25. Moue
inquired about a possible traffic signal at Highway 25
and Sixth Street if the community would support a projected
increase of traffic on Highway 25. Eidem responded that Min/DOT
warrants traffic signals by ADT studies, not by future projections.
Eidem reported the interceptor sewer would be installed from
Highway 25 east across said property, south of BNR to Cedar
Street before construction of the building cite. Schrupp
inquired to whom the interceptor sewer would be budgeted?
The installation of the interceptor sewer being included
in the City Budget, not part of the Tax Increment Finance.
HRA Minutes - October 10, 1985
Eidem explained the need to carry the interceptor sever under the
BNR track at the Cedar Street intersection then continuing
along the north side of the railroad tracks connecting at
Washington Street to help eliminate the interceptor overload
along Front Street.
Hedtke questioned the possible vacancy of the Maus Building.
Eidem stated Raindance's personal interest In finding a
replacement, noting this is a key issue at the Tuesday night
City Council Meeting for receiving levy bonds. Eidem continued
to explain property taxes are not lost on this particular property
because of the County's formula of assessment. Said property
is assessed the same in Howard Lake as in Monticello. The Raindance
project increases employment potential for Monticello.
Correction on the Tax Increment Finance Proposal were approved.
Corrections as follows:
Land Cost (Eck) $139,000.00
Administration 12,500.00
Total Cost of Project 412,150.00
Bonds 350,000.00
Required from Developer 62,150.00
With no further discussion, Chairperson Wieber asked for a motion to
adopt the Resolution approving the Tax Increment Finance (TIF)
proposal and requesting the City Council to set a Public Hearing.
Schrupp moved to adopt the resolution, seconded by Hedtke.
Passed 3-0. Maus abstention was due to personal interest.
Second item on the agenda was the adoption of the HRA 1986
Operating Budget. Discussion resulted around the reduction
of $10,000 for 1986 Ad Valorem from the $37,000 in 1985.
Eidem explained this to be a comfort zone, noting the $69,000.
collectible fees from Tax Increment. The committee agreed
they'd like to see a reserve of around $100,000. for the
HRA projects allowing for more flexibility.
Motion was made by Maus, seconded by Hodtko to adopt the HRA
1986 Operating Budget. Passed 4-0.
Other Business: Committee agreed to meet after next regular
HRA meeting to discuss objectives for 1986.
Maus asked about the City's possibility to purchase the land and
building north of Moon Motors along Highway 25. Staff would
need to contact owner, Cliff Olson.
Maus asked for an update on industrial development. Eidem
-2-
HAA Minutes - October 10, 1985
reported on positive Industrial activity of eight firma, along with the
staff time involved in the Veit "Raindance" Project. Koropchak
reported on her activities since employment October 1, indicating
the four new industries she had contacted.
Chairperson Wisber asked for a motion to adjourn. Motion made by
Schrupp, seconded by Maus. Passed 4-0. Meeting was adjourned.
Olive M. Koropchak �l
Executive Secretary, Housing and Redevelopment Authority
C
NOTICE OF PUSUC HEARING r
' OMPQS1 M OF PUBIC LANDS
Notice Is herby ghee thm a public hearing will,
be hold at 7 o'clock 0.m. w Thwadey. Nov. 7. .
1986, the Monticello City Council Chenbers.
760 Ent Broadway, MomkNio. Movnots.
55387. for the purpose of accepting comment
on the proposed ee0ulaition Sod subaepuent
UW by the Monticello Mousing and Redevelop-
ment Authority to Ralndance PmtnersNp, a
M;rmseots Oeneret Partrw a*, of the Wow.
Lang wopam:
Lots 1.10, Stack 15. Original Plat ,Cloy
'of
Manticeao. ,
The woposad anis ,is part of the HRA
Redevelopment Plan end is intended to be in-
cludedInTax hownentDishic No. S. Anyone
wishing to submit comments should submit
Sold Comrnanta to the office of the city ad.
ministrator no Later then 4:30 p.m.. Thwsdsy.
November 7. 1985.
—Olive M. Koropehak, Executive Seasta y.
Monticello Housing and Redevelopment
C
BRA Agenda - 11/7/85
3. Public Rearing on Dispositions of Public Lands. (O.K.)
A. REFERENCE AND BACKGROUND
Notice of a Public Nearing on the Disposition of Public Lands
appeared in the Monticello Times, Thursday, October 26, 1985
and Thursday. October 31, 1985. If no comment or testimony
appears at the said hearing, the hearing is closed.
No Alternative Actions or Staff Recommendations.
D. SUPPORTING DATA
A copy of Public Notice.
HRA Agenda - 11/7/85
4. Consideration to extend HRA's Real Estate Loan Agreement with
Metcalf and Larson (Elderly Project). (O.K.)
A. REFERENCE AND BACKGROUND
Presently, the BRA holds a Real Estate Loan (NO. 84022) with
Wright County State Bank for Metcalf and Larson (Elderly Project)
on Block 51, Lots 13, 14, 15. Expiration date of the loan
agreement being November 9, 1985. Due to a freeze on Federal
Appropriations, Metcalf and Larson request a 90 -day extension,
from November 9, 1985,. to February 9, 1986. Interest for
this 90 -day extension is $1,121.92 at a 13% interest rate.
B. ALTERNATIVE ACTIONS
1. Grant a 90 -day HRA loan extension to Metcalf and Larson
with an expiration date of February 9, 1986, at $1,121.92.
2. Do not grant a 90 -day HRA loan extension to Metcalf and Larson.
C. STAFF RECOMMENDATION
Staff recommends the extension be granted because of circumstances
beyond Metcalf and Larson's control. Secondly, the proposed
Elderly Project would be an added benefit to the community
of Monticello.
D. 3UPPORTINO DATA
Copy of present Wright County Real Estate Loan Statement.
141
a�3d_ ,_ A/ONTICELLO. MINNESOTA yy
OUR ?eC;R75 IYuICaTc A PaY1EVT ►
IS 7:1= F71 T4c L144 LISTED l__C;i S`ubTELEPHONE IBIZ1295-i95:
BK METROUNE 18121332-295:
24 HR. TRANSFER UN
R/? DOTE NOT1:E PAYIEVT DUE LOAN @121295.2992
LAA`I = DAH DU= DAT3 BALANCE
34022 10/30/85 37293.68 11/09/35 35000.00
'-'••'Tit:iLLO li7USI�� .. ,ir�5'/cL^D / � ( Ir,�
1 10'Tl'.:LLI;,,".N
HRA Agenda - 11/7/85
5. Consideration for the HRA to adopt the Raindance Properties
v Development Agreement. (O.K.)
A. REFERENCE AND BACKGROUND
Raindance Properties (Veit Construction) of Rogers. Minnesota, has previously
met with the Development Committee. On October 10, 1985, the Development
Committee adopted the Tax Increment Finance (TIF) Proposal Plan and
requested the City Council to act a public hearing. On October 15,
1985, the City Council held a public hearing to issue Industrial Revenue
Bonds and set a public hearing concerning the Tax Increment District
and Plan. On October 16, 1985, notification was delivered to School
District 882 Superintendent Shelly Johnson and the County Assessor.
On October 28, 1985, the City Council held the public hearing on the
Tax Increment District, with no opposition, the hearing closed. However,
the City Council did not formally adopt the Plan. Adoption will be
done following completion of negotiations and the adoption of the Developor-a
Agreement by the HRA.Public Nearing (on Disposition of public lands)
being held on said property this day. Total project coat being $412,150.00,
Bonds at $350,000.00 and cost to developer of $62,150.00 (Agreements
rounded figure is $62,000.00.). Raindance Properties will construct
a 33,000 square foot building with appropriate parking, leasing out
25,000 square feet for a supermarket and the remaining 8,000 square
feet to other commercial enterprise. Upon completion of the project
and annual tax increment of approximately $41,000.00 shall be collected
off the project, and increment to be 100% dedicated to the rotiromant
of the $350,000.00 Bond Issue. No tax levy is required for said rotiremont.
Raindance Properties final site proposal and agreeable terms on the
vacancy of the present Maus Bulding will be disclosed at the HRA meeting.
B. ALTERNATIVE ACTIONS
1. Adopt the Raindanco Properties Development Agroomont.
2. Deny the adoption of the Raindanco Properties Development Agreement.
C. STAFF RECOMMENDATIONS
Staff recommends the adoption of the Raindanco Proportico Development
Agreement providing final site plans aro acceptable and a nogotiable
agreement is reached on the present Maua Building. (Staff recommends
the 8,000 oquaro fact for other commercial ontorprison be apociflod
now enterprises not relocation of present entorpri000.)
D. SUPPORTING DATA
Presented at meeting - Dovoloper-o final site piano and Developers Agreement.
HRA Agenda - 11/7/85
6. Consideration for the HRA to purchase public lands from Wilbur
Eck and the City of Monticello. (O.K.)
A. REFERENCE AND BACKGROUND
On October 28, 1985, the City Council authorized the right
to sell City property Lote 7-10, Block 15, Original Plat,
City of Monticello to the MtOnticello BRA for $2.25 per square
foot or $90,000.00. A purchase agreement with Wilbur Eck
for Lots 1-6, Block 15, Original Plat, City of Monticello
to the Monticello HRA for $2.25 per square foot or $139,000.00.
The total land acquisition being $229,000.00
B. ALTERNATIVE ACTIONS
1. HRA purchase public lands from the City of Monticello
and Wilbur Eck.
2. BRA refusal to purchase public lands from the City of
Monticello and Wilbur Eck.
B. STAFF RECOMMENDATION
As staff evaluates the Raindance Properties Project as an
asset to the community, our recommendation is for the BRA
to purchase said properties form the City of Monticello and
Wilbur Eck at a total coat of $229,000.00.
No supporting data.
C
HRA Agenda - 11/7/85
7. Consideration for the HRA to sell above said properties to
Raindance Properties and to authorize the execution of funds.
A. REFERENCE AND BACKGROUND
Due to the purchase of public land (above said property) by the
HRA, hereto, to sell said property (Block 15, Original Plat,
City of Monticello) to Raindance Properties, Rogers, Minnesota,
for the total of $62,000.00.
B. ALTERNATIVE ACTIONS
1. To sell above said property to Raindance Properties and authorize
the execution of funds.
2. Not to sell above property to Raindance Properties.
C. STAFF RECOMMENDATION
Staff recommends the HRA to sell Block 15, Original Plat, City of
Monticello for $62.000.00 to Raindance Properties for construction
of a 33,000 square foot building with appropriate soil corrections.
D. SUPPORTING DATA
No supporting data.
1i
HRA Agenda - 11/7/85
8. Consideration for the HRA to modify Tax Increment District 2. (O.K.)
A. REFERENCE AND BACKGROUND
Tax Increment District 2 currently consists of the following
ten parcels (map section blue):
a. 155-010-050010 (Haas)
b. 155-010-050011 (Teslow)
C. 155-010-OSOOBI (Metcalf & Larson)
d. 155-010-050082 (Capps, CD from Lindberg)
a. 155-010-050100 (Metcalf & Larson)
f. 155-010-051010 (Monticello Ford)
g. 155-010-051011 (Jones)
h. 155-010-051020 (Monticello Ford)
1. 155-010-051040 (O'Conner)
J. t55-010-050101 (City of Monticello)
Modification of Tax Increment District 2 would add the following
four parcels (map section orange):
k. 155-010-050-111 (Hallenbeck) Map Section K
1. 155-010-051-050 (Stolton) Map Section L
m. 155-010-051-111 (Gustafson) Map Section M
n. 155-010-051-130 (MHRA) Map Section N
Under Minnesota Statutes 273, Tax Increment District may be
modified if 70% of the additional parcels consist of building
and 20% of additional parcels consist of blighted land or
buildings. Parcels K, L and M consist of building structures
and is 750 of additional parcels. Parcel, L is considered
blighted lands or buildings, mooting the 201 requirement.
B. ALTERNATIVE ACTIONS
1. To modify Tax Increment Diatrict 2. Modifying District 2
would provide an added incentive for future RRA projects.
Secondly, it would capitalize on the increment of the
Elderly Project to assist in other projects:
Present Motcalf/Larson Bldg.,
Monticello Ford, and Hess parcels.
2. To deny modification of Tax Increment District 2.
C. STAFF RECOMMENDATION
Staff recommends Alternative Ono to modify Tax Increment
District 2.
D. Supporting Data
Kap
R
I�
•t'r:7 nl
Teo.
N syr
HRA RESOLUTION 1985 C
V A RESOLUTION BY THE MONTICELLO HOUSING ��71
AND REDEVELOPMENT AUTHORITY MODIFYING
THE EXISTING TAX INCREMENT FINANCING
REDEVELOPMENT DISTRICT 02 PURSUANT TO
MINNESOTA STATUTES, SECTION 273.71 TO
273.78 INCLUSIVE, THE TAX INCREMENT
FINANCE ACT.
WHEREAS, the Housing and Redevelopment Authority in and for the City of
Monticello (the "Authority") 1s carrying out the Monticello Redevelopment
Project (the "Project") and Redevelopment Plan (the "Plan"); and
WHEREAS, the Authority determined in 1983 that is was necessary to
create a tax increment financing redevelopment district pursuant to the
Minnesota Tax Increment Financing Act, Minnesota Statutes, Section 273.71
to 273.78 inclusive (the"Act") within the redevelopment project created
pursuant to Minnesota Statutes, Section 462.411 at seq. , the Municipal
Housing and Redevelopment Act; and
WHEREAS, in connection with the undertaking to modify the existing
tax increment district by the Authority pursuant to the Act, the approval
by the Board of Commissioners (the "governing body") of the Authority of
the modification to the existing tax increment plan is required by the
local governing body before it will consider for approval said modification
to the plan; and
WHEREAS, there was presented to this meeting of the governing body
of the Authority for its consideration and approval, a copy of a tax
increment plan modification for said redevelopment district dated November,
1985 which plan is entitled Modification 01 to Tax Increment District 02
("Modification No.l"); and
WHEREAS, the Authority has prepared Modification 01 and submitted
Modification 01 to the City Planning Commission of the City of Monticello
(the "Planning Commission") for its review and opinion; and
NOW, THEREFORE, BE IT RESOLVED by the governing body of the Housing
and Redevelopment Authority in and for the City of Monticello:
1. That the tax increment financing district as modified heroin
is a tax increment financing redevelopment district since the construction
of the Metcalf/Larson facilities hoe resulted in and enhanced the tax
base of the City, and the elimination of blight.
2. That the proposed redevelopment within the tax increment
financing district no modified heroin, would not have reasonably been
expected to occur solely through private investment because, in the
opinion of the City. Motcalf/Larson would not have located its business
within the City without the use of tax increments to finance the acquisition
of a suitable site for development; and
3. That the Planning Commission has reviewed the tax increment
financing plan as modified herein and it conforms to the general plan for
l the development of the municipality because a whole as it will result in
an increase in the City's commercial economic activity.
4. That the tax increment financing plan as modified herein will
afford maximum opportunity consistent with the sound needs of the City as a
whole, for the development by private enterprise as it will enable the
City to assist the developer with the construction of a commerical facility
by providing a suitable site for development.
The Housing and Redevelopment Authority of Monticello. Minnesota does hereby
approve the tax increment financing plan modification and modification O1
to tax increment district 02 as described in said tax increment financing
plan, and does hereby transmit to the City Council said plan for their
adoption.
Adopted by the Monticello Housing and Redevelopment Authority this
day of November, 1985.
ATTEST:
L
I
Chairperson 0
HRA Agenda - 11/7/85
9. Consideration for HRA to modify the Redevlopment Project Area.
`L A. REFERENCE AND BACKGROUND
Set under the Minnesota Statue 462 is the Redevelopment Project Area
for the City of Monticello. The present area consist of the
yellow outlined area (See Map). Immediate modification of the
Redevelopment Project Area would alter the boundaries to include
Blocks 38 and 3� LQwe �o nticello. (See Map - red outline).
which is toned Siga,Business with a housing land acquisition.
Said modification would allow Tax Increment Financing (TIF) availability
for the rehabilitation of the present Nursing Home site. Future
modification would include solid red area of map to provide restoration
of the Rand Mansion and possible funding for the Little Mountain
Settlement.
B. ALTERNATIVE ACTION
1. To modify the Monticello Redevelopment Project Area.
2. To deny modification of the Monticello Redevelopment Project
Area.
C. STAFF RECOMMENDATION
Staff recommeds the HRA to modify the Monticello Redevelopment
Project Area to qualify the present Nursing Home Rehabilitation
Project for Tax Increment Finance (Proposed Bergstad Properties
Plan).
D. SUPPORTING DATA
Map
Rive
MR?
Ra
�
--- J.
11GHWAY NO. 94
HRA Agenda - 11/7/85
10. Consideration of concept approval and the use of Tax Increment
Finance (TIF) for the Bergstad Properties Proposal.
V.
A. REFERENCE AND BACKGROUND
John B. Bergetad of Bergstad Properties, Hopkins, Minnesota,
proposes to rehabilitate the present Monticello Nursing Home
(Block 39, Lower Monticello) now owned by the Monticello -
Big Lake Hospital District. Plane are for an approximate 25
one -bedroom intermediate care rental units for persons of ages
75-85. Plans include an attached 2 -story expansion of the
present structure to the west. Socialized areae within the
present home would remain with food (one meal per day) and
laundry services provided by the Monticello -Big Lake Hospital.
This is not subsidized housing.
As of January 1, 1986, Tax Increment Financing and Bonding will
no longer be available. Tax Increment Finance was originally
designed to help in the rehabilitation of vacated buildings of
which this project qualifies v Mr. Bergstad will be present at
the meeting with preliminary plans and cost, it is the staffs
hope that the BBA committee and City Council will cooperate and
act, inorder, to allow this project the use of Tax Increment
Finance (TIF) and meet the January 1 deadline.
B. ALTERNATIVE ACTION
1. Approve project concept and the use of Tax Increment Finance
(TIF) for the Bergstad Properties Proposal.
2. Do not approve the project conept and use of Tax Increment
Finance (TIF) for the Bergetad Properties Proposal.
C. STAFF RECOMMENDATION
Staff highly recommends the approval of the project concept and
use of Tax Increment Finance (TIP) for the Bergstad Properties'
Nursing Homo Project. The proposed plan 1s a perfect project
for the use of TIF and allows the continued use of a soon-to-be
vacated building. Intermediate elderly housing is needed in
our area.
D. SUPPORTING DATA
Data will be presented at the HRA meeting.
11. Other Business
A. Clifford Olson 872-7590
Zoned (B4) Regional Business
Block 16, Lot 10, City of Monticello,
North of Moon Motors along Highway 25.
Mr. Olson indicated the possibility of selling said (building and
land) property, however, would not state a selling price but
asked the City to make an offer. A man does occupy the house, with
no occupant in the garage. He indicated no hesitation to list
the property with a Real Estate Firm for six months (meaning he'll
.hold out for the beet price).
4. Metcalf and Larson Elderly Project
� 400
A. OR per George Philips to extend for 6 months
B. First National Bank of Monticello Tom 295-2290
135.000 loan 90 -day interest rate 12-1212 plus
/I closing cost (new mortage tax, etc.)
V6 C. Security Federal Savings and Loan
KA-
10. Borgstad Nursing Homo Project
OAV 1715,000 tax exempt
Spacial Meeting Tuesday, November 12, 1985 for Bargstad Properties
Suggested time 4:OOPM