HRA Agenda 09-07-1988AGENDA
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, September 7, 1988 - 7:OOAH
City Hall
MEMBERS: Chairperson Ren Maus, Lovell Schrupp, Ben Smith.
Al Larson, and Everette Ellison.
CITY STAFF: Rick Wolfsteller and 011ie Rorochak, HRA Director.
1. CALL TO ORDER.
2. APPROVAL OF THE AUGUST 10, 1988 HRA MINUTES.
3. CONSIDERATION TU EXECUTE THREE OPTION AGREEMENTS. SEPTEMBER 30, 1988.
4. CONSIDERATION OF MODIFICATION 03 FOR TAR INCREMENT FINANCE PLAN
DISTRICT 02.
5. CONSIDERATION TO CHANGE THE HRA MEETING DATE/TIME.
6. REPORTS: MODIFICATION OF SEVEN TAR DISTRICTS INTO ONE DISTRICT.
O'CONNOR - VIOLATION OF CITY ORDINANCE.
ADVERTISEMENT IN REAL ESTATE JOURNAL.
7. OTHER BUSINESS.
8. ADJOURNMENT.
MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, August 10, 1988 - 7:00 A.M.
City Hall
MEMBERS PRESENT: Chairperson Ken Maus, Lovell Schrupp, Ben Smith.
Al Larson. and Everette Ellison.
STAFF MEMBERS PRESENT: Rick Wolfsteller, Jeff O'Neill, and 011ie
Koropchak.
1. CALL TO ORDER.
Chairperson Ken Maus called the HRA meeting to order at 7:07 AM.
2. APPROVAL OF THE JUNE 8, 1988 HRA MINUTES.
Lovell Schrupp made a motion to approve the June 8, 1988 HRA
minutes. Al Larson seconded the motion, with no further comment,
the minutes were approved by a 5-0 vote.
3. FINANCIAL REPORT OF THE SEVEN TAX INCREMENT FINANCE DISTRICTS.
Administrator Wolfsteller presented the HRA members with a
current financial recap of the seven Tax Increment Districts
(enclosed with minutes). Rick summarised the information by
stating the first three districts listed were financed internally
(no bond sales) and the remaining four districts were financed
through bond sales. Currently, Tax Increment District 03
(Fulfillment Systems, Inc.) is the only district which has
an investment reserve surplus balance (;49,000). When a bond
has been issued, the HRA is required to have three bond payments
In reserve, thereafter a surplus is constituted for the use
of other projects. Projections indicate that TID 06 (Raindance
Properties) will generate a surplus balance of $25.000 to
$30,000 next year. TID 01 (IXI) now looks good as the taxes
are current, however. TID 04 (IXI) which includes Lot 6 owned
by Ron and Dee Johnson and Lot 5 owned by the HRA will constitute
a lose. The other districts will begin to generate increment
in 1989.
City Staff advised the HRA of their thoughts and plane to sock
the assistance of a consulting firm which could give direction
to the city of it's full potential use of Tax Increment Financing.
Soma potential City questions are 1) Can we combine or modify the
the seven districts into one district, 2) How do we accomplish
this, 3) What constitutes a surplus, 3) What can surplus monies
be earmarked for, 5) What are the changes in the TIF laws, and
6) others. Presently. City staff has met with a firm from
North Mankato and received a cost proposal.
The HRA members discussed their philosophy for the use of TIP surplus.
Al Larson felt reserve surplus should retire the debts (debt/
service payments). Ken Maus felt reserve surplus should be
applied toward elimination of blighted areas or the development
of now or expanding industrial businesses (job creation and
increase of tax base) but not for street improvements that
L1
HRA Minutes — 8/10/88
3. CONTINUED.
would constitute questions by the school district, the county,
or the hospital district. The estimated cost for a consultant
is $1,500 to $10,000 which can be absorted in the TIF Plan,
project cost. Chairperson Maus advised the HRA members with
the assumption the seven districts were modified and surplus
monies did exist that the HRA annually review the surplus
amount and earmark a project accordingly.
A motion made by Lowell Schrupp directed the City Staff to
establish a list of TIF objectives/needs, thereafter, prepare
questions and a request for proposal. This to be mailed to two addit-
ional consulting firms. The motion was seconded by Al
Larson, and without further discussion passed unanimously.
4. UPDATE OF CITY COUNCIL ACTION ON THE RESIDENTIAL SURVEY PERMIT
FEES AND THE CLIFFORD OLSON PROPERTY.
The HRA accepted the written agenda supplements on the two
subj acts. Jeff O'Neill further informed the HRA that Gary
Anderson will obtain a warrant from the judge granting
legal permission to enter the Olson Property. The City
has beard no response from Mr. Clifford Olson. Chairperson
Maus asked City Staff to communicate to Mr. Olson the HRA's
interest in the property. Mr. Anderson will video tape the
inside of the property.
S. CONSIDERATION TO REVIEW THE RECOMMENDED BUILDING ORDINANCE
REOU IREMENTS.
Jeff O'Neill highlighted the industrial/commercial structure
restrictions noting the 202 construction cost increase to a
developer /builder by restricting no more than one-third of the
wall surface facing a public street or interstate freeway or
adjacent to a residential or public area, consist of panels
of steel, fiberglass, and aluminum. The Planning Commission
having reviewed the first draft of the proposed restrictions
(same as the onclosed draft) did suggest the elimination of
Item 4.c. and made no further comment until the 11RA and
IDC reviewed the restrictions and provided the Commission with
inpu t. Chairperson Maus asked how the IDC viewed the restrictions?
Mr. O'Neill responded that the IDC had no major difficulties
with the proposed restrictions; however, Koropchak perception
of the IDC response to the restrictions were not the some
as Kr. O'Neill, as IDC Vice President Don Smith asked the
committee members to take the proposed restrictions with
them for review and discussion at the August 18th meeting.
Chairperson Maus stated that city ordinances wore outside the
powers of the NRA; however, he added that from a
practical point of viow.ho had constructed two metal
buildings'^61thoUt-any problems. He suggested the deletion of
item 4.c., thorobye would allow for the construction of
pole buildings. Also. Maus noted that the restrictions of
all metal buildings may bo too tight and wording may be
HRA Minutes - 8/10/88
5. CONTINUED.
added to include that an entire metal building be esthetically
pleasing. Al Larson felt the proposed restrictions should
consider the best end results. Also, the HRA mentioned that
steel beams can melt faster than wood beams in a fire.
6. CONSIDERATION TO MAKE RECOMMENDATIONS FOR THE PROPOSED CITY'S
HRA BUDGET.
The HRA asked what taxable levy amount would a one mill levy
produce? three/quarter of a mill levy? one/half of a mill
levy? Administrator Wolfsteller estimated approximately
$115,000, $80,000, and $55,000, respectively. The HRA further
discussed the need to request a mill levy if the modified
seven tax increment district created a sufficient surplus
for projects and working capital. Since this is a preliminary
budget wish list the HRA can reconsider the request if a
surplus would exist.
Ben Smith made a motion requesting the City to exercise the
HRA'e levy power and levy one-half mill or an approximate taxable
levy amount of $55,000 in Year 1989 for working capital.
The motion was seconded by Everette Ellison, and with no
further discussion, the motion passed unanimously.
7. CONSIDERATION OF CONCEPT FOR CONSTRUCTION FIVE PROPOSED OFFICE/
WAREHOUSE AND MINI STORAGE.
The HRA accepted the preliminary concept of Construction Five's
proposal as an informational item only.
8. CONSIDERATION OF INFORMATION TO MODIFY THE CURRENT TAR INCREMENT
DISTRICTS INTO ONE FINANCE PLAN.
This item was addressed and acted upon by the HRA under item
throe of these minutes.
9. CONSIDERATION TO REVIEW MONTI TRUCK REPAIR'S USE OF HRA PROPERTY
AS A USED CAR LOT.
Koropchak informed the HRA on the status of FmHA funding and
further expressed that she didn't forsee funding approval
by the end of September. She had advised the HRA in the agenda
of their options to Mr. O'Connor's violation of the City
Ordinance by using the HRA property as a used car lot.
The HR.1 discussed the time element to 1) obtain a lease
agreement between the NRA and O'Connor, 2) application of
a conditional use permit, and 3) two weak notification for
�y
N\
HRA Minutes - 8/10/88
9. CONTINUED.
a public hearing in comparison of the expiration date of
the option agreement, September 30th. Al Larson expressed
that the HRA should exercise the option on the O'Connor
property; therebye, eliminating any conflict. Chairperson
Maus expressed the HRA's position that the option agreements
were real business deals with the intention to exercise the options when
funding was approved. However, with funding approval time
unknown, time causes holding costs for the three property
owners. Suggestion was for the City Staff and HRA to consider
alternative ways to fund the purchase of the all the properties
before September 30th, therefore, allowing tax exempt status
by the October 15 deadline.
City staff expressed their concerns that in the past Dr.
McCarty, Teelow, and the previous Dino's sites were denied
the use of used car lots. The HRA recognized Mr. O'Connor's
advantage of the property and agreed that doing nothing was
no solution.
Lovell Schrupp made a motion directing City Staff to execute
a letter to Joe O'Connor stating he's in violation of the
City Ordinance. The motion was seconded by Ben Smith, and
passed unanimously.
10. OTHER BUSINESS.
1� Al Larson suggested the HRA meeting be held in the evening.
This to be an agenda item next month.
The HRA inquired on the progress to locate an interested
developer for construction of high quality elderly housing
close to downtown. The HRA considered use of the construction
bulletin or an ad in the real estate journal. Koropchak
will check on this.
11. ADJOURNMENT.
The HRA meeting adjourned at 9100 AM.
011ie Koropchak
HRA Executive Secretary
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HRA AGENDA - 9/7/88
3. CONSIDERATION TO EXECUTETHREE OPTION AGREEMENTS.
SEPTEMBER 30. 1988. (O.K.)
A. REFERENCE AND BACKGROMI$,
The HRA's goal for the past few years has been to eliminate
a blighted area in downtown Monticello, portions of Block 51.
Currently, the BRA has option agreements to purchase the
properties of O'Connor, Stelton, and Jones', expiration date
of the agreements being September 30, 1988. As the current
property owners are becoming anxious for a purchase decision because
of the unknown and increase of holding coat. The HRA has
three options for consideration: 1) Attempt to negotiate
a three month extension on the option agreements, 2) Execute
the option agreements to purchase the properties, 3) Drop
the project.
As of early this week, the current statue on the FmHA funding
according to Brad Larson is that Metcalf 6 Larson have received
a preliminary verbal approval to execute the 622 Program which
gives direction for a developer to prepare the final application
for FmHA funding. Mr. Larson is expecting a written confirmation
from FmHA on this, within the week. The Planning Commission's
September 6th Agenda includes consideration to review the
final site plane for the Metcalf/Larson Elderly Project. Mr.
Larson further informed me that at the State FmHA office, one
director retired, thereafter, the remaining directors ranked
the funding applications for approval in October. Due to the
many applications only 100 applications were ranked, on a
scale of 0 to 100, 100 being the highest priority, Metcalf 6
Larson's application is ranked 72. Funding is approved and
allocated on a first come, first served basis of the final
application submittal by the developer.
Based on the HRA's three options for consideration listed in
paragraph one above, options 1 and 3 need no additional
information for execution. To execute option 2) execution
of the option agreements to purchase the three properties, the
following information is presented for consideration prior
to a decision by the HRA.
The procedure for the HRA to execute the option agreements
without formal FmHA funding approval and the closing data
unknown is outlined in the following paragraphs.
guru., the HHA would need to borrow money from the city with
the assumption of no proposed elderly project. According to
Bob Deiko of Holmes 6 Graven, Tax Increment District 02 Finance
Plan would require Modification 03 because the HRA would be
acquiring additional property within the district. Within
Modification Plan 03 would be the description of the proposed
elderly project stating the approximate time of bond sale.
If the elderly project is a ap go, there would be no need for
a Modification Plan 06. Modification Plan 03 needs to satisfy
HRA Agenda - 9/7/88
3. CONTINUED.
the HRA's ability to repay the debt service incurred by the
City Loan plus all existing district expenses (Metcalf 6 Larson
Securities debt service and the Monticello Ford contract for
deed debt service).
Supporting Data Sheet A is the projected 1989 tax increment
with the assumption of acquisition of the O'Connor, Stelton,
and Jones' properties by the HRA prior or by September 30,
1988, and no purchase of property by Metcalf b Larson; therebye,
meeting the October 15, 1988 deadline for tax exempt status.
This projected annual tax increment is $23,070.82. Supporting
Data Sheet B indicates District 02 total projected costa to
acquire the properties. In the right-hand column labeled
City Loan are the cost included for a $245,000 loan from the
City to the HRA. The loan is at 8% over 20 years, assumption
of no elderly project and the ability to pay debt service.
NOTE: as indicated at the bottom of Sheet B the projected
annual tax increment is aU sufficient to cover the amortized
annual loan debt service of $24,955.70 plus the Securities
annual debt service of $4,285.00 (through year 1997); therefore.
the HRA would need to request the City to levy a taxable levy
amount of at least $6,169.18 for 20 years. The HRA couldn't
execute their levy power because the HRA's levy is based on a
one year levy which wouldn't satisfy the ability to pay the total
L incurred debt service. The proposed loan is sufficient to
retire the Monticello Ford contract of deed at 102 interest,
however, upon Rick Wolfsteller's opinion, he doesn't recommend
the retirement of the Securities Loan at 92.
ACTION: The HRA's decision to request from the City a Loan
in the amount of $245,000 at 8% interest over 20
years and to request the City to levy a taxable levy
amount of at least $6,169.18 for 20 years or until such
time as when tax increment is sufficient to retire D/S.
Sacand, the HRA needs to consider the sale of the properties
(estimated in spring/summon of 1989) to Metcalf 6 Larson and
the selling price options Snordor to retire the debt service
Incurred by the bond solo.
Supporting Data Sheet C is the projected 1992 tax increment
with the assumpiton of a 1989 construction and full completed
assessment on the tax book January 2, 1991, payable 1992.
This projected tax increment is $36,085.10 based on a 1988
mill rate.
Supporting Data Shoat D. Plan A, indicates the bond sale project
cost if the HRA rocups all of it's incurred expenses. Supporting
Data Shoot D. Plan B. indicates the bond sale project cost if
the HRA rocups all of it's incurred expenses, except the HRA
incurred paid expenses.
0
9
HRA Agenda - 9/1/88
3. CONTINUED.
The projected tax increment of $36,055.10 is sufficient to
allow a Bond Issuance of $260,000 at 9.255 interest over
18 years. Amortized annual debt service is $30,193.80 plus
Securities debt service of $4,285.00. Bond sale D/S retirement
is projected for year 2010, life duration of the district and
Securities D/S retirement is projected for year 1997. NOTE:
the remaining balance of Plan A. $84,000 and remaining balance
of Plan B, $48.000.
Supporting Data Sheet E gives options to negotiate selling
price to Hetcalf 6 Larson and options for possible additional
HRA funds to make this a do -able project.
ACTION: The HRA'o decision to proceed with the project, execute
plan A or B, and recommendation for negotiations of
final funding.
THEREAFTER, the HRA will consider Modification Plan 03 for
Tax Increment Finance District 02.
B. ALTERNATIVE ACTION.
1. Attempt to negotiate a three month extension on the three 0
option agreements.
2. Execute the option agreements to purchase the properties.
3. Drop the project.
C. STAFF RECOMMENDATION.
No staff recommendation at this timet however, will report to
the HRA on the Planning Commission's opinion and recommendation
of the final site review.
D. SUPPORTING DATA.
Sheets A. B. C, D. and E included in the agenda.
L
SUPPORTING DATA SHEET A
REDEVELOPMENT DISTRICT 02
PROTECTED INCREMENT 1989
OVA
HAV
155-010-050010
CITY OF MONTICELLO EXEMPT
EXEMPT
050011
TESLOW, MARGUERTIE S $ 9,860
3 14,420
050081
METCALF 6 LARSON 13,574
15,904
050100
BROADWAY PARTNERS 10,536
73,775
050101
CITY OF MONTICELLO EXEMPT
EXEMPT
050111
HOLLENBECK, D 4 L 8,960
9,548
051010
MONTICELLO RRA (FORD) EXEMPT
EXEMPT
051011
MONTICELLO MRA (JONES)EXEMPT
EXEMPT
051020
MONTICELLO HRA (FORD) EXEMPT
EXEMPT
051040
MONTICELLO HRA (O'CONNOR)MPT
RXEMPT
051050
MONTICELLO HRA (STELTON)EMPT
EXEMPT
051111
GUSTAFSON. CLIFFORD 6,277
6,171
051130
RIVER PARK VIEW 9.600
175.160
TOTAL 58,807
294,978
RIVER PARK VIEW
LAND $1.0797 x
63,360 - $68,409.79
•34
$23,259.32
APT $24,500 x 31
$759,500.00$175,160
.20
$151,900.00
NAV $294,978.00
OAV I8. Am. pQ
CAV $236,171.00
LESS CREDITS 456.13
$235,714.87
MILL RATE (1980) .027876
TAX INCREMENT $ 23.070.82
SUPPORTING DATA SHEET B
TAX INCREMENT DISTRICT 02
PROJECT COST - ASSUMPTIONS, EXECUTION OF THREE OPTION AGREEMENTS
NO PROPOSED PROJECT - ELIMINATION OF BLIGHT
HRA BORROWS $245,000 CITY 8Z OVER 20 YEARS ANNUAL D/S $24,955.70 AMORTIZED
SEPTEMBER 30, 1988 (ANNUAL P -� $12,250 AND I % $19;600)
BALANCE ANNUAL
SECURITIES (1997)
METCALF 6 LARSON
$38,565.00
$ 4.285.00
AARAAA*ARAt*RRAARA**##ARRA*AAA
RAA*AA*A#ARRAARAAAR**#AXR#R#*AA#*A#AA**
OLD MONTICELLO FORD GARAGE
CITY LOAN
CONTRACT FOR DEED
50,000.00
$50,000.00
INTEREST (6/88, 12/88)
4,722.00
(12/88) 2,222.00
DEMOLITION
6,500.00
ADMINISTRATIVE
2',000.00
ASSESSMENTS
980.00
980.00
DOWNPAYMENT
25,000.00
$89,202.00
$53.202.00
JONES
PROPERTY
52,000.00
RELOCATION 6 MOVING EXP
5,000.00
DEMOLITION
5,000.00
TAXES 0 of 1988)
590.00
$62,590.00
$62.590.00
O'CONNOR
RAW LAND
45,000.00
RELOCATION 4 MOVING EXP
5,000.00
DEMOLITION
5.000.00
ASSESSMENTS
370.00
TAXES 0 of 1988)
420.0
$55,790.00
$55,190.00
STELTON'S
CONTRACT FOR DEED
40,000.00
DOWNPAYMENT (NO INTEREST 3MOS)20,000.00
RELOCATION 6 MOVING EXP
5,000.00
DEMOLITION
5,000.00
TARES 0 of 1988)
600.00
$70,600.00
$70,600.00
SUBTOTAL
$278,182.00
$242,182.00
LESS SAVINGS ON 3MOS INT.
630.00
630.00
TOTAL
5277,552.00
5241,552.00
ANNUAL D/S (CITY LOAN)
$24.955.70
ANNUAL SECURITIES
4.285.00
TOTAL ANNUAL DIST. COST
$29,240.70
LESS TAX INCREMENT
23.070.82
ANNUAL CITY LEVY
$ 6.169.18
SUPPORTING DATA SHEET C
REDEVELOPMENT DISTRICT 02
PROJECTED INCREMENT AFTER SECOND ELDERLY
PROJECT
OVA
NAV
155-010-050010
CITY OF MONTICELLO
EXEMPT
EXEMPT
050011
TESLOW, MARGUERTIE S
$ 9,860
$ 14,420
050081
METCALF b LARSON
13,574
15,904
050100
BROADWAY PARTNERS
10,536
73,775
050101
CITY OF MONTICELLO
EXEMPT
EXEMPT
050111
HOLLENBECK, D 6 L
8,960
9,548
051010
MONTICELLO HRA (FORD)
4,455*
051011
MONTICELLO BRA (JONES)
3.690*
051020
MONTICELLO HRA (FORD
10,418*
051040
MONTICELLO HRA (O'CONNOR)
5.115*
051050
MONTICELLO HRA (STELTON)
4,537*
161,182
051111
GUSTAFSON. CLIFFORD
6,277
6,171
051130
RIVER PARK VIEW
9.600
175.160
TOTAL
$87,022
$456,160
*TOTAL SQUARE
FOOTAGE 28,215 X EMV $2.50
X 40% - $28,215
SECOND ELDERLY
PROJECT
LAND $2.50 X 28,215
sq to - $70,537
.34
$23,982
APT $24,500 X
28 - $686,000
$161,182
.20
$137,20
NAV
$456,160.00
OAV
87.9?2.49
CAV
$369,138.00
LESS CREDITS
45§.&�
$368,681.87
MILL RATE (1988)
.097876
TAX INCREMENT
$ 36,085.10
Q
SUPPORTING DATA SHEET D
TAR INCREMENT DISTRICT 02
c
L PROJECT COST — ASSUMPTIONS, EXECUTION OF THREE OPTION AGREEMENTS, AND
APPROVAL OF FmHA FUNDING FOR SECOND ELDERLY PROJECT.
BOND ISSUANCE — $260,000 9.25% OVER 18 YEARS D/S $30,193.80 AMORTIZED
(P- $14,444.44 AND I - $24,050)
OR — $270.000 9.25% OVER 18 YEARS D/S $31,355.10 AMORTIZED
(P - $15,000.00 AND I - $24,975)
BOND ISSUANCE — SPRING 1989
PROJECT COST 319Ld MALI
CITY LOAN $245,000.00
CITY LOAN INTEREST (LYEAR) 19,600.00
$264,600.00 $264,600.00 $264,600.00
OLD MONTICELLO FORD GARAGE
INTEREST $ 2,500.00
DEMOLITION 6,500.00
ADMINISTRATIVE 2.000.00
DOUNPAYMENT 25.000.00
$ 36,000.00 $ 36,000.00
ADMININSTRATIVE $ 11,000.00
BOND DISCOUNT 11,250.00
PLAN MODIFICATION 2,500.00
BOND ISSUANCE 12,000.00
CAPITALIZED INTEREST (30MOS) 62.650.00
i 99,400.00 _} 22.490.00 3 99.400.00
TOTAL PROJECT COST $400,000.00 $364,000.00
LESS FmHA $ 56.000.00
LESS BOND ISSUANCE 260.000.00
$316,000.00 $316,000.00 $316,000.UU
REMAINING BALANCE 4 $ 84,000.00 $ 48,000.00
BOND ISSUANCE $260,000 D/S $ 30,193.80 BOND ISSUANCE $270,000 D/S $31,355.10
SECURITIES D/S 4,285.00 SECURITIES D/S 4,285.00
TOTAL $ 34,478.80 TOTAL $35.640.10
PROJECTED TAX INCREMENT $ 36,035.10
L
SUUPORTING DATA SHEET E
PLANA
21mu
• REMAINING BALANCE
$84,000.00
$48,000.00
PmHA
METCALF &
LARSON TOTAL
SQ FT
HRA
LESS
$56,000
+
$84,000
- $140,000
$4.96
0
LESS
$56,000
+
$44,000
- $100,000
$3.54
$40,000
LESS
$56,000
+
$19,600
- $ 75,600
$2.68
$64,400
LESS
$56,000
+
$14,000
- $ 70,000
$2.48
$70,000
LESS
$56,000
+
0
- $ 56,000
$1.98
$84,000
LESS HRA 1989 TAX LEVY $40,000
LESS MODIFIED DISTRICTS $49,000 PSI 1988 SURPLUS
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HRA Agenda - 9/7/88
4. CONSIDERATION OF MODIFICATION PLAN 03 FOR TAX INCREMENT
j\ FINANCE DISTRICT 82.
A. REFERENCE AND BACKGROUND.
With the assumption the HRA'a prior decision was to execute
the option agreements to purchase the three properties, the
HRA needs to proceed as follows. The HRA needs to execute
a resolution approving Modification Plan P3 for Tax Increment
Finance District 02 and requesting the City Council to set
a Public Hearing date for the Modification Plan 03.
Due to the fact Modification Plan 03 must be approved by City
Council prior to purchase of any additional properties by
the HRA. The City Council should have ample time to consider
the project cost, request for a loan by the HRA, and the need
for the City levy to complete the finance package.
September 12 City Council meeting - request for public hearing
date.
September 26 City Council meeting - public hearing and approval
of Modification Plan /3 Resolution for Tax Increment Finance
District 42.
B. ALTERNATIVE ACTION.
1. Execute the HRA Resolution for Modification Plan 03 for
Tax Increment Finance District /2 and requesting the
City Council to set a public hearing date.
2. Deny executions of the HRA Resolution, therebye, stopping
the acquisition of the three properties at this time.
C. STAFF RECOMMENDATION.
Staff recommendation is if the HRA considers the project do -able
then to proceed on schedule to meet the time table outlined.
D. SUPPORTING DATA.
HRA Resolution and Modification Plan /3 to be presented at the
HRA meeting.
HRA Agenda - 9/7/88
5. CONSIDERATION TO CHANGE THE HRA MEETING DATE/TIME.
A. REFERENCE AND BACKGROUND.
At the last HRA meeting, HRA member Al Larson suggested
changing the 7:00AM HRA meeting time to a FM meeting
time allow ample time for agenda items, discussion, and
decisions prior to HRA members having to leave for daily
business store openings, etc. This is open for discussion
by the HRA members.
6. REPORTS:
A. MODIFICATION OF SEVEN TAX DISTRICTS INTO ONE DISTRICT.
Assist. Administrator Jeff O'Neill developed and mailed a
letter to two firms: Peat, Marwick, Main 6 Company, Minneapolis
and Business Development Services, Inc., Minneapolis. The
letter included questions relating to the TIF objectives/needs
of Monticello and a request for proposal. A meeting is scheduled
for Sepember S. 11:OOAM with Business Development Services, Inc..
Pat Pelstring and Jeff O'Neill, Rick Wolfeteller, and myself.
Jeff hasn't heard from the other firm.
B. O'CONNOR - VIOLATION OF THE CITY ORDINANCE.
Enclosed is a copy of the letter mailed to Mr. Joe O'Connor.
C. ADVERTISEMENT IN REAL ESTATE JOURNAL.
It is the decision of Jeff O'Neill to wait with an advertisement
in the Real Estate Journal until housing need cross -tabulation
results are available from the City's Attitude Survey.
D. LETTERS TO STATE SENATORS FROM MAYOR GRIMSMO.
Enclosed is a copy of the letters developed and mailed by Koropchak from
Mayor Grimamo to Senator Boechwitc and Senator Durenberger
requesting assistance on a proposed elderly project.
city 4 Monticello
' , MONTICELLO, MN 55362.9245
August 17, 1988 copy
Phone (612) 298.271+ Mr. Joe O'Conner
Metro (512) 333.8739 Monti Truck Repair
247 heat Broadway
Monticello, NN 55362
mayor
Dear lir. O'Conner:
Arve Gdon"
Cann
Please be informed that your present use of Lot 1, Block 51 as a
Fran Fur
sales area for motorized vehicles is not allowed without first
WIOWn Fak
obtaining a Conditional Use Permit for such use. City staff looks
Warrensrmm
forward to assisting you in the Oonditional Use Permit process.
Lot 1, Block 51, is located in the B•-4 8aning District. B-4 zoning
A&nln�
regulations stipulate that operation of a motorized vehicle sales
akkWoftt"
area requires a Conditional Use Permit. The process for obtaining a
Aaals M AdmIrdatrood
pwmbq a zor":
Conditional Use Permit is found in Chapter 22 of this ordinance.
JeH O•Nam
Attached for your review are the regulations governing the B-4
PLVic Warks;
District and procedures associated with the Conditional Use permiting
io" sums
process.
euro onlaal:
Gary
If you are interested in applying for a Conditional Use Permit,
Drvelopffaffl:
please contact me by August 22, 1988. If you do not plan on
obtaining a Conditional Use Permit, please cease Auto sales
Operations at this location by September 19, 1988.
If you should have any questions, please call.
Yours Truly,
Jeff O'Neill,
Assietant Administrator
JO/vb
C: Gary Anderson, Planning Commission
Tom Bayes, City Attorney
do
leo eau
I. ..=
55362.0245
Phone (612) 295-2711
Metro (612) 3334M
City 4 MontiAo
MONTICELLO, MN 66362.8245
August 10, 1988
I cc: Metcalf 6 Larson, Attorney at Law
011ie Koropchak, HRA Director
File
260 EaM &oowsy \�
Moneesee, Mauraod
0&162.9246
Ame 6Amamo
Senator Rudy Boschwitz
Cay CQWCW
506 Hart Building
Dan Bloriw
Washington, DC 20510
Fran Fah
Waam Fab
wamM smuh
Dear Senator Boschwitz:
Monticello's Application for Farmers Home Administration
(FmHA) Funding is at the Federal Farmers Home Administration
Pock wo6aia6a
Office In Washington, DC. The application is for funding
Atahtare AMWANUslod
a 28 -unit subsidized elderly housing project. It's my
Ptmb0i0. aZZor4
understanding that the State of Minnesota has more proposed
FmHA activities than available 1988 funds. The funds
Pubk W01w:
jam 81mo v
are disbursed on a first coma, first served basis and
because our project lies within a Downtown Redevelopment
A
B " �rtowsot
Project area, it must be reviewed by the Washington Office.
Foarintlo WDroei
rebottlOM:
You can see the importance of time, therefore, I ask
P
r/ Kwopcha,
you to support our application.
The Monticello Housing and Redevelopment Authority (HRA)
and the City has strongly supported the 28 -unit subsidized
elderly housing project because it would provide needed
subsidized elderly housing, it would eliminate blight in
a distressed downtown business area, and it would create
pedestrian traffic for the existing businesses.
As a supporter of yours and the Republican Party, please
consider a personal word of encouragement to the Federal
Farmers Homo Administration Office for the Monticello
PmHA Application.
Your support is greatly appreciated. Thank you.
Arvo Crimomo, Mayor
City of Monticello
AG/ok
I cc: Metcalf 6 Larson, Attorney at Law
011ie Koropchak, HRA Director
File
260 EaM &oowsy \�
Moneesee, Mauraod
0&162.9246
1989 BUDGET WISH LIST
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Levy 1/2 mill - At the August 10, 1988 HRA meeting, the members
unanimously voted to exercise their levy power
and are requesting the City to levy 1/2 mill
in the year 1989 for working capital. Estimated
taxable levy amount would be $55,000. The HRA's
1988 mill rate was .068 or $7,750 taxable levy.
ECONOMIC DEVELOPMENT
$200,000 - The Monticello Industrial Development Subcommittee of
Dale Lungwltx, Linda Mielke, Don Smith, Jeff O'Neill
and 011ie Koropchak have completed the first draft
of the GREATER MONTICELLO CORPORATION REVOLVING LOAN
FUND POLICIES. The subcommittee will present the
policies to the City Council for approval in the
near future. The subcommitte is requesting that
$200.000 of the 1989 Monticello Liquor Store Fund
be earmarked for the initial revolving loan fund pool.
Briefly, the fund as written would be for existing
I and new industrial businesses or non-competitive
commerical businesses which would create jobs,
increase the tax base, and put dollars into our
local businesses. The Fulfillment Systems, Inc.
UDAG Grant repayment of approximately $23,000 per
year could help replenish the fund.
$20,000 - Community logo, brochure, fact sheets, and video tape
(Star City Recertification requirements)
$10.000 - Consultant Face
$200 - File
$500 - Dictophono
- Table for computer
011ie Koropchak
Economic Development Director
11x1,.
C.itt� 4 Mon&A
MONTICELLO, MN 65382.9248
August 10, 1988
Phare (812) 29&2711
Metro (612) 333-5711a
Mayor.
Ane Grimsmo
city Casco:
Senator Dave Durenberger
Dan 9ulrtigen
154 Russell Senate Building
Bran Far
Washington, DC 20510
William FW
Warren Smith
Dear Senator Durenberger:
Admfttlonlor.
Monticello's Application for Farmers Home Administration
Rick Woletsest
(FmHA) Funding is at the Federal Farmers Home Administration
AtabtantAemwnrmm)
Office in Washington, DC. The application is for funding
Ptamtnp6Zorjnw
a 28 -unit subsidized elderly housing project. It's my
M O'Neill
understanding that the State of Minnesota has more proposed
Pudicftks
Fmt-A activities than available 1988 funds. The funds
Jam SOON
are disbursed on a first come, first served basis and
Ballolnp Ol6oW:
Oery Anderson
because our project lies within a Downtown Redevelopment
Project area, it must be reviewed by the Washington Office.
EoonottKwopchak apnw,c
You can sea the importance of time, therefore. I ask
you to support our application.
The Monticello Housing and Redevelopment Authority (HRA)
and the City has strongly supported the 28 -unit subsidized
elderly housing project because it would provide needed
subsidized elderly housing, it would eliminate blight in
a distressed downtown business area, and it would create
pedestrian traffic for the existing businesses.
As a supporter of yours and the Republican Party, please
consider a personal word of encouragement to the Federal
Farmers Home Administration Office for the Monticello
FmHA Application.
Your support is greatly appreciated. Thank you.
Sin oly,
ArveGrimamo, Mayor
City of Monticello
AG /ok
cc: Metcalf 6 Larson, Attorney at Law
011ie Moropchak, HRA Director
File
240 Cent 6►osOmp
Mont, -,, eaetneso0
641162.9246
Towering Pines
Affordaole Apartments for Seniors in Howard Lake
'•-i
Towering Pines is - y J
rTtodem building for ;
indgpendent, mature, BA7fi a
adults. h Is not a care I- '�� BED
-facility. Asa resident, ROOM
you91 enjoy the friendl/
community conveniei,ce, I
and security. And yaL'll ,
have more free time fc r
family, hobbies or --� ,
community service, )a 2 /N/Ny Ll Y/N
because there are no o9 W ,
maintenance worries or
AREA R00%H I�
expenses. Best of alt, %I
your rent can be as lo•H as E '
$2311
• Affordable, controlled rents and deposits. Basic rent is just $231 per
month, and that includes heating) No hidden fees or association dues.
• Located within walking distance of the library, seniors center, shopping,
and several churches.
• A clean, newer apartment building that is carefully maintained for your
security and comfort.
• Spacious one -bedroom apartments have 850 square feet of living area.
Convenient layout with full kitchen and large rooms.
• Well equipped with an emergency call system, security system. TV
connections, and laundry.
• Plenty of parking and easy wheelchair access to both floors from the
parking lots.
• Large Community Room for birthday parties, pot -tuck suppers and
games. A friendly community atmosphere.
For Information, call: Alice Bakeberg or Pat Van Oss
caretaker owner/manager
543-3887 548-0111
wo are studying the possibility of a somm twilaing in M )M t I f
your suppeslbns. Pioaso cau to dicuss your nods and C'U 1 t I'c) I t : \ T 1 c) V
.ono t.aw ow ewr �saoo w•r■w eaa.da
w•vn•. Ww••a• �OOY�
PAT VAN OSS