HRA Agenda 05-02-1990AGENDA
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, May 2, 1990 — 7:00 PM
City Hall
MEMBERS: Chairperson Al Larson, Ben Smith, Lovell 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 MARCH 7, 1990 HRA MINUTES
AND THE APRIL 6, 1990 HRA MINUTES.
3. CONSIDERATION TO REVIEW, ADJUST, AND APPROVE THE 1990
HRA GOALS.
4. CONSIDERATION OF AN ESTABLISHED DATE FOR THE ALL CITY
GOVERNMENTAL UNITS MEETING.
5. CONSIDERATION OF AN UPDATE OF NEWLY ESTABLISHED TIF
DISTRICTS.
6. OTHER BUSINESS.
�C 7. ADJOURNMENT.
MINUTES
MONTICELLO ROUSING AND REDEVELOPMENT AUTHORITY
j Friday, April 6, 1990 - 11:00 AM
City Hall
MEMBERS PRESENT: Chairperson Al Larson, Ben Smith, and Everette
Ellison.
MEMBERS ABSENT: Lowell Schrupp and Tom St. Hilaire.
STAFF: 011ie Koropchak.
1. CALL TO ORDER.
Chairperson Al Larson called the NRA Special meeting
to order at 11:20 AM.
2. CONSIDERATION TO ADOPT A RESOLUTION MODIFYING TAX INCREMENT
FINANCE PLAN RELATING TO TAX INCREMENT FINANCE DISTRICT
NO. 1-10 FROM A REDEVELOPMENT DISTRICT TO AN ECONOMIC
DISTRICT.
Koropchak informed the HRA members that originally, this
TIF district was to be established an a redevelopment
district and now will be established as an economic district
as recommended by Bob Deike of Holmes 6 Graven, the City's
bond counsel. In Mr. Deike's opinion, the district did
not meet current statutory qualifications for establishment
of a redevelopment district. Current statutory qualifications
to establish a redevelopment district state that 701 of the
parcels in the district are occupied by buildings, streets,
utilities, or other improvements, and 201 of the buildings
are structurally substandard (there aro no buildings on
this parcel). Nor can he justifiably determine the streets,
utilities, or other improvements to be structurally
substandard to a degree of requiring removal. Thirdly
is his concern with legislators' intent to further tighten
the qualifications for establishment of redevelopment
districts.
Koropchak explained the impact of the change. An economic
district has a lesser impact on a community than a redevelopment
district; therefore, there is no need to republicite the notice,
and the taxing jurisdictions will be notified of the change upon
adoption of the TIF District and Plan by the City Council.
Secondly, the duration of the district is reduced from 25
years to 10 years. The upfront assistance to Rammale Engineering
was basad on increment generated over eight years, however,
ataff had anticipated the additional increment collected over
the remaining 15 years would assist in costa to reconstruct
the realigned Fallon Avenue, purchase the small triangle piece
to the south of Chelsea Road, and to replenish the HRA general
fund for future projects. The actual reconstruction of
Fallon Avenue and/or the construction of a bridge across 1-94
is highly unlikely to occur for another several years.
Financing of these public improvements may be through another
NIA Minutes - 4/6/90
Page 2
t
2. CONTINUED.
TIF project, through assessment, or through the increased
increment generated by porject expansion within this
district.
Recognizing the need to meet statutory requirements of
establishing a district, Everette Ellison made a motion
to adopt the resolution modifying Tax Increment Finance
Plan and District relating to Tax Increment District No.
1-10 from a Redevelpment District to an Economic
District, as per Mr. Bob Deike's recommendations. Ben
Smith seconded the motion and without further discussion the motion
carried unanimously. Lowell Schrupp verbally agreed
to the modification, however, was unable to be present
at the meeting.
3. ADJOURNMENT.
The HRA meeting adjourned at 11:45 AN.
011ie Koropchak
NRA Executive Secretary
MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, March 7, 1990 - 7:00 PM
City Hall
MEMBERS PRESENT: Chairperson Al Larson, Lowell Schrupp. and
Ben Smith.
MEMBERS ABSENT: Everette Ellison and Tom St. Hilaire.
STAFF PRESENT: 011ie Koropchak, HRA Executive Director.
1. CALL TO ORDER.
Chairperson Al Larson called the HRA meeting to order at
7:25 PH.
2. APPROVAL OF THE FEBRUARY 7, 1990 HRA MINUTES.
Lowell Schrupp made a motion to approve the February 7, 1990
RRA minutes, seconded by Ben Smith. With no further comments
the minutes were approved as written.
3. PUBLIC HEARING FOR THE DISPOSITION OF LANDS RELATING TO
TAX INCREMENT FINANCE PLAN FOR TAX INCREMENT DISTRICT NO.
1-10 (REMMELE ENGINEERING).
Mr. Larry Griffith, Legal Counsel for Remmele Engineering,
informed the HRA that a purchase agreement has been executed
between the Oakwood Industrial Partnershp and Remmele Engineering,
however, the option agreement between Jim Boyle and Remmele
has not been executed. The Remmele Engineering project to only
doable upon the purchase of the Boyle property and to begin
the project because five foot of the building in Phase I
extends across the would be vacated East 33 ft of Fallon
Avenue. Mr. Red Heitkamp was also present.
The public hearings for the adoption of TIF Plan and District 1-10,
for vacating of Fallon Avenue and utility and drainage easements,
and approval of the plat request are scheduled for the March 12
City Council meeting. Soil testing have been completed and
confirmed OK and the project indicates no environment impacts.
Phase I include necessary parking for 50 employees (40 original
employee will be from Big Lake plant), Phase II will be an
additional 17,500 sq ft of warehouse only with about 60
employees of two shifts. Plane ora for complete landscaping
and Rommelo Engineering sign on building facing 1-94.
The HRA public hearing for the disposition of land relating
to Tax Increment Finance Plan for Tax Increment District No. 1-10
was opened by Chairperson Al Larson. With proper public hearing
HRA Minutes - 3/1/90
Page 2
3. CONTINUED.
notice in the local newspaper and hearing no public oral or
written comments, said public hearing was clos-1 .
The Remmele project includes 6.5 acres of Lot 6, Block 1,
Oakwood Industrial Park, 0.41 acres of vacated Fallon Avenue,
2.07 acres of Boyle's Property for a total project area of
approximately 8.93 acres. Remmele will purchase an additional
1.32 and deed to the city .92 acres for realigned Fallon
Avenue north of Chelsea Road and the city will purchase 0.40
acres (triangle piece south of Chelsea Road) from Remmele.
The TIF Plan relating to Redevelopment TIF District No. 1-10
was included (a portion of) in your agenda. The TIF budget,
Phase I, is $260,000 (land acquisition, $120,000 and on-site,
utilities/grading/landscaping, $65,000). The $65,000 from
the NRA excess funds. Remaining amount is for soft coats,
capitalized interest, etc.
Ben Smith made a motion to approve a resolution authorizing
the acquisition and disposition of lands relating to
TIP District No. 1-10 and to approve a resolution relating
to the modification, by the Housing and Redevelopment
Authority in and for the City of Monticello, of the Redevelopemnt
Plan relating to Redevelopment Project No. 1, the modification
of the Tax increment Financing Plane relating to Tax Increment
Financing Districts Nos. 1-1 through 1-9 and the approval
and adoption fo the Tax l,ncrment Financing Plan relating to
Tax Increment Financing District No. 1-10, all located
within Redevelopment Project No. 1, effective upon filing
of the plot request. Lovell Schrupp seconded the motion
and without further discussion the motion carried unanimously.
The motion was passed because the project was consistent
with HRA policy considerations: 1) The project is consistent
the City's Comphonsive Plan, 2) The project demonstates
long-term economic and/or housing benefits to the community.
3) The project creates employment for Monticello, 4) The
project shell provide additional public funding for public
improvements whihe would not otherwise be available, and 5)
The project is deemed to promote additional desired "spin-off"
development. The project will also increase the tax -bane
and Rommel is a quality 'company which will provide skilled
and semi -skilled jobs.
4. CONSIDERATION TO APPROVE THE CERTIFICATE OF COMPLETION AND
RELEASE OF FORFEITURE FOR THE BROADWAY SQUARE LIMITED
PARTNERSHIP.
'( Lovell Schrupp made a motion to approve the Certificate of
u Completion and Release of Forefelture for the Broadway Square
Limited Partnership. because the project has been completed
within the guidelines of the Development Agreement and the
occupancy permit has been issued by the City Building Inspector.
The motion was seconded by Ben Smith and without further
discussion carried unanimously.
HRA Minutes - 3/7/90
Page 3
5. CONSIDERATION TO DISCUSS AND ESTABLISH A DATE FOR A JOINT
MEETING BETWEEN THE HRA AND THE CITY COUNCIL REGARDING
TIF POLICIES.
Chairperson Al Larson didn't see a need for a joint meeting
but reiterated the feelings of the HRA that they hoped in
the future the Council consider tabling an agenda item which
may be unclear or inconsistent with HRA policy to allow further
discussion or clarification of the project outside the realms
of the public and that Koropchak is to provide Council members
with a copy of the HRA policies.
6. CONSIDERATION OF PROJECT UPDATES: DAVID FICEK - since the
February 1, 1990 meeting with property owners. Koropchak
has not been able to make contact with Mr. Ficek nor has
he returned her telephone calls.
TAPPER INC. - It seems unlikely at this time that the Small
Small Development Loan for Tapper's will be approved by
the Board so an alternative of SBA funding is being put in
place. At this time, the EDA has received no GMEF Application
however are expecting one as the GMEF 1s part of the financial
package.
MARTIE'S FARM SERVICE - Koropchak asked the [IRA members for
their interpretation of proper screening. The HRA felt
that was the decision of the Planning Commission and/or
the Building Inspector and City Planner. Their concern
is for the industrial park to develop With a consistent asethetic
value.
K -MART - no report as Jeff O'Neill was not present.
7. CONSIDERATION TO REVIEW AND ADOPT 1990 HRA GOALS.
Chairperson Larson recommended tabling this agenda item
until more HRA members are present. Item was tabled.
8. CONSIDERATION TO REVIEW YEAR END TIF DISTRICTS REPORT.
Administrator Rick Wolfatellor presented written copies
of the HRA Funds and TIP Debt Service Funds to the commissioners.
The summary showed that from the eight TIP District approximately
$250,621.87 was collected from tax increment with one short
fall of $685.57 of which will be reimbursed in 1990. TIF
bonds proceeds was $215,320.00 for the elderly housing project
and $23,000.00 city loan for NSP. The HRA Fund cash surplus as of
12/31/89 is $167,190.06.
Ai Larson made a motion to pay off the $23,713.00 HRA debt at the
Big Lake Bank at the Administrators discretion. Ben Smith seconded
the motion and without further discussion carried unanimously.
This was for the purchase of lands for the first elderly project.
BRA Minutes - 3/7/90
_ Page 4
8. CONTINUED.
Rick further summarized the TIF DB Fund with a caab surplus
as of 1/1/89 of 4138,930 plus transfer in from HRA $116.201
the ending cash surplus as of 12/31/89 is $204,673 with
P 6 I payments of $169,273 due in 1990. Additionally, $65,000
will be taken from the BRA funds for Remmele Engineering, Inc.
The commissioners thanked the Administrator for the report.
Chairperson Al asked Koropchak to mail the reports to the
HRA members who are act present at this meeting.
9. CONSIDERATION OF INFORMATION:
The provided IDC 1990 Goals and Budget. Chamber of Commerce 1990
Goals and Budget, and the summary from the Star City's
Annual Report were only intended as informational information.
Unless there were questions, the Chairperson may room on to
the next agenda item.
10. OTHER BUSINESS.
None.
r
11. ADJOURNMENT.
Lowell Schrupp made a motion to adjourn the HRA meeting,
seconded by Ben Smith, the HRA meeting adjourned at 9:00 PH.
QM. KnoI.Q9,.
011ie Koropchak
HRA Executive Secretary
�l- 1) j
SUIOIARY
IIRA PUNO
THROUGH 17/71/89
M -L 17
(includna
Ra lntlanca
Conelt. 5
Gnn9 rel
1%1 #A
I%I 1/
Idar
RSP .0
PBI rJ
16
IS
RAUCO 17
Op, ret lona
To:nl_
Caen 5urpluo
Ido" c1t) 1/1/19
611,191.00
62,991.00
1160,677.00)
6(197.00)
619,518.00
6(310.01)
6(30,673.00)
61/,399.00
166,226.00
$30,791.00
REVENUE
Taw Inr, r.avente
,.011 octad
0.775.7/
11,773.81
72,115.65
0.00
/7,528.23
53,051.30
71,331.35
33,162.76
0.00
250,671.67
R.E. to roe -
a3 valor..
0.00
1-.00
0.00
0.00
0.00
0.00
0.00
0.00
16,039.19
16,079.19
Py t. by property
owner
N. Crodlt
195.57
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
971.59
195.57
911.59
6P• Ao.t. Inc.
l0 / 1)
0.00
0.00
0.00
0.00
0.00
0.00
7,261.91
0.00
0.00
2,297.91
Saln ul land
0.00
0.00
56,000.00
0.00
0.00
0.00
0.00
0.00
0.00
5b, 000.00
Bond pr-aoda 6
loan Ire. Con.
fund
0,00
0.00
215.320.00
23,000.00
0.00
0.00
0.00
0.00
0.00
23P,l20.00
intoruat In-
0.00
0.00
0.00
0,00
0.00
0.00
0.00
O,o0
5.317,21
_',,J17.21
TOTAL REVC71U6
60.061.31
611,722.11
1393,165.65
623,000.00
617.320.77
653.051.30
673,672.29
133,162.76
627,267,99
1569,983.37
rxpERRE0
Salarla/-
InrluHinq P.H.
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
I/,i19,77
1/,21n, 77
Olflco oupplloe
0.00
0.00
0.00
0.00
0.00
O.UO
0.0o
O.UO
10.95
10.95
Prot. aarvlcoo
0.00
700.00
20,270.97
1,016./0
0.00
0.00
0.00
0.00
6,265.15
35,7.12.77
Phone
0.00
0.00
0.00
O.qD
0.00
0.00
0.00
0,00
257.IH
2.10
Trwol
0.00
0.00
0.00
0.00
O.UO
0.00
0.00
0.00
205.21
20'..21
I.e9e1 pull ic/tlona
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
151.27
151.77
Otho r/.lar.,
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
36.75
)6.15
Into root a,panaa
1.600.00
11,7]0.00
3,!11.70
351.50
0.00
0.00
0.00
0.00
O.on
19,196.20
Princ11,a1 peyaont
0,000.00
17.000.00
1,973.63
0.00
0.00
0.00
0.00
0.00
0.00
21,972.63
L-3 ecq.1*ILIan coot• 0.00
0.00
303.317.65
]1,000.00
0.00
0.00
0.00
0.00
0.00
225,582.65
Tranalar put to
debt aory lce
0.00
0.00
0.OQ
0,00
Oy,QQ
31770.00
60,909,00
73.511.g0
0,00
116 �i 01. 00
TOTAL C"LMOL0
99,600.00
676,920.00
6315,067.90
624,►00.90
60.00
171,778.00
160,909.00
173,516.00
121,171.53
1117,581.33
Eaceao Rwpnue
Over CApantllt ora•
1176.799.01
Coon Rurplua
Idaticlt) 12/31/89
113,115.31
6(9,705.16)
112,759.751
6131097.901
696.076.23
112,107.701
117,910.711
11/,337.16
161,J19.16
6167,190.01
(�dtlltlone int^n 1
Outa tandlnp Iwn
bolenroo n o1
17/31/09
113,000.00
1172,000.00
123,713.00
171,000.00
Pay -to duo
In 1990
62,960.00
121,000.00
11,100.00
11.610.00
Cash Surplus
(deficit) 1/1/89
REVENUE:
Transfer in from HRA
(tax increments)
Interest Income
Bond Proceeds -
Cap. int.
TOTAL REVENUE
EXPENSES:
Principal pymt.
Interest exp.
Paying agent fees
TOTAL EXPENSES
Cash Surplus
(deficit) 12/31/89
Additional Notes:
Outstanding Bond
Debt as of 12/31/89
Principal a Interest
Pymts Due in 1990
SUMMARY
TIF - DEBT SERVICE FUNDS
12/31/89
$ 15,000 $ 10,000
9,675 27,563
649 452
$ 25,324 $ 38,015
$ 34,010 $ 41,128
$110,000 $340,000
$ 28,338 $ 36,925
$ -0- $ -0- $ -0-
24,368 13,407 -0-
364 365 330
$ 24,732 $ 13,772 $ 330
$ 57,094 $ 28,942 $ 43,499
$365,000 $155,000 $260,000
$ 53,543 $ 27,807 $ 22,660
Totals -
All Bonds
$ 138,930
116,201
9,668
42,047
$ 167,916
$ 25,000
75,013
2,160
$ 102,173
$ 204,673
$1,230,000
$ 169,273
1989A
1984
1985
1987A
19876
M -L
FSI
Raindance
Const. 5
NAWCO
Elderly Hsq
$ 55,920
$ 54,555
$ 19,678
$ 8,777
$ -0-
-0-
21,778
60,909
33,514
-0-
3,414
2,810
1,239
423
1,782
-0-
-0-
-0-
-0-
42,047
$ 3,414
$ 24,588
$ 62,148
$ 33,937
$ 43,829
$ 15,000 $ 10,000
9,675 27,563
649 452
$ 25,324 $ 38,015
$ 34,010 $ 41,128
$110,000 $340,000
$ 28,338 $ 36,925
$ -0- $ -0- $ -0-
24,368 13,407 -0-
364 365 330
$ 24,732 $ 13,772 $ 330
$ 57,094 $ 28,942 $ 43,499
$365,000 $155,000 $260,000
$ 53,543 $ 27,807 $ 22,660
Totals -
All Bonds
$ 138,930
116,201
9,668
42,047
$ 167,916
$ 25,000
75,013
2,160
$ 102,173
$ 204,673
$1,230,000
$ 169,273
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01
ITF
1990
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY GOALS
MEMBERS: Al Larson, Chairperson
Ben Smith, Vice Chairperson
Lovell Schrupp
Everette Ellison
Tom St. Hilaire
Rick Kolfsteller, Treasurer
011ie Koropchak, Executive Director
GOALS: A. To market the City of Monticello and to successfully
recruit three new quality industrial businesses with
approximately 50 employment each.
B. To consider joint guidelines/policies for the use of
Tax Increment Financing between the Housing and Kedevel-
opment Authority and the City Council.
1. To review and to adjust the current HRA guidelines and
policies for the use of TIF.
'l. To adopt the revised joint guidelines/pulicies for use
of TIF.
b 3. To adhere to the adopted joint guidelines/policies for
use of TIF.
4. To annually analyze the adopted joint guldalines/policies
for the use of TIF.
C. To continue indorsement for a higher quality elderly housing
development close to downtown with a townhouse ranrpPr,
D. To continue research and indorsement of a elderly housing
development with total full services available.
E. To research and designate neighborhood substandard,
blight, or deteriorating areas for redevelopment.
F. To continue the joint meeting between the IDC, the HKA,
the EUA, the Planning Commission, and the City Council.
G. To adhero to the Joint Powers Agreement between the HKA.
the EDA, and the City Council.
It. To review and analyze the Agreamunt Between the HKA and
Bunlness Development Services, Inc.
3/5/90
HRA Agenda - 5/2/90
4. CONSIDERATION OF AN ESTABLISHED DATE FOR THE ALL CITY
GOVERNMENTAL UNITS MEETING.
The meeting date for the all city governmental units
meeting has been set for Monday, June 4, 1990. 7:00 PH at
the Fire Hall. The meeting consist of members of the
City Council, Planning Commission, Housing and Redevelopment
Authority, Economic Development Authority, and the
Industrial Development Committee plus City Administration
and supporting administrative staff. At this time ,
the floormat and topic have not been decided.
Please mark your calendar.