HRA Agenda 11-04-1987AGENDA
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, November 4, 1987 - 7:GOAM
City Hall
Members: Lovell Schrupp, Ken Maus, Ben Smith, Al Larson, and
Everette Ellison.
1. Call to Order.
2. Approval of the October 7, 1987 HRA Minutes.
3. Consideration to Reappoint Everette Ellison to the HRA.
4. Consideration to Elect 1988 HRA Officers.
S. Consideration to Set 1988 HRA Goals and to Review the
Preliminary Budget.
6. Reports: Old Monticello Ford Property
HAWCO Minnesota, Inc.
Beverage Processing Company
Replat of Lots 9 and 10, Block 2, Oakwood Industrial Park
Fulfillment Systems, Inc.
7. Other Business.
8. Adjournment.
MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, October 7, 1987 - 7:OOAM
City Hall
Members Present: Lowell Schrupp, Al Larson, and Ben Smith.
Members Absent: Kenneth Maus and Everette Ellison.
1. Call To Order.
Acting Chairperson Lowell Schrupp called the HRA meeting
to order at 7:08AM.
2. Approval of the September 2, 1987 HRA Minutes.
Al Larson made a motion to approve the September 2, 1987
NRA minutes, seconded by Ben Smith. Minutes stand
approved.
Consideration to Modify the Central Monticello Redevelopment
Plan Boundaries.
Mr. Wolfeteller and Koropchak having received letters of
request from Mr.Jim Boyle and Kra. Gladys Hoglund to
extend the boundaries of the Central Monticello Redevelopment
Plan to include their respective properties, 190 acres south
of I-94 and east of Oakwood Industrial Park and 72 acres south
of the railroad tracks and east of Bondhus Corporation.
This would allow them the use of tax increment financing.
According to Mr. Bob Disks. attorney at Holmes b Graven,
the 1987 State Legislature amended the Minnesota Statutory
which now prohibits the extension of those boundaries
without any structures on blighted land. Mr. Dicke's
alternate suggestion was for the City of Monticello to
consider the establishment of a Monticello Development
District inwhich the HRA could be designated to administer
the program. Details on how the program works and it's
benefits need to be researched before presented to the
City Council. A recommendation by Al Larson was that the
City consider a larger area for the boundaries than the
two area which are requested, if the city would establish
such a district. Bon Smith seconded the recommendation.
4. Consideration of Additional Information on Comparative
Estimated Market Values.
The HRA accepted the information provided by Mr. Wolfeteller
which reported comparative estimated market values
to actual selling prices from 10/85 to 9/86 county wide.
Also reported was comparisons between Buffalo and Monticello
on the estimated market value for buildings only by aq ft
dollar. The committee would like to have Mr. Wolfstellor
obtain a copy of the 86/87 and 87/88 school district budget.
HRA Minutes - 10/7/87
Consideration of Update on the Monticello Ford Proeerty.
Koropchak reported to the committee that city staff recommended
delaying the demolition of the old Ford Property inorder to
negotiate with O'Connor to relocate and possibility of demolition
of both buildings. Specs and bids were to be prepared by
the Public Works Director and have not been started. A developer
is interested in the construction of a low income elderly
project if proper zoning would be considered thereby property
would be available for a developer to apply for a needs study
for Farmers Home Administration, funding. Koropchak said her
intentions are to present to the Planning Commission in concept
only for consideration to rezone the area from B-4 to PZ -M.
Al Larson recommended the HRA continue with it's original plan
to demolish the Ford Property as soon as possible for the
enhancement of future development. By December 1987, 1f at
no additional coat. This was the consensus of the HRA.
6. Consideration to Review a Letter Regarding the Monticello
Ridgpmont Apartments.
The HRA was presented with a copy of the letter from Mr.
William Slininger, District Director for Farmers Home Admin-
istration.notifing the Monticello Housing and Redevelopment
Authority who could assist the displaced tenants of the
Ridgemont Apartments in relocation. Displacement is caused
by a prepayment of the Borrower's loan with Farmers Home
Administration. The HRA would like further information on
the recommended percentage of low and moderate income family
and/or elderly housing per city as established by the FmHA. And
if there is a need in Monticello and where the residents are
from.
7. Other Business.
Nona.
8. Adjournment.
Ben Smith made a motion to adjourn, seconded by Al Larson.
The HRA meeting adjourned.
011ie Koropchak
Executive Secretary
Monticello HRA
HRA Agenda - 11/4/87
3. CONSIDERATION TO REAPPOINT EVERETTE ELLISON TO THE HRA.
A. REFERENCE AND BACKGROUND.
Although Everette Ellison was recently appointed to the
HRA, he filled a position on the commission which term
expires December, 1987; therefore, I ask Mr. Ellison to
consider the position and term for another five years,
December, 1992. The City Council appoints all City
Commissioners whose terms expire in 1987 at the first meeting
in January, 1988. Assuming the acceptance by Mr. Ellison,
the positions and terms would stand as followed for the HRA.
Al Larson December 1988
Lovell Schrupp December 1989
Ben Smith December 1990
Ken Maus December 1991
Everette Ellison December 1992
B. ALTERNATIVE ACTIONS.
1. Mr. Ellison accepts reappointment to the HRA.
2. Mr. Ellison denies acceptance for reappointment to the HRA.
C. STAFF RECOMMENDATION.
Staff recommends and encourages Mr. Ellison to accept
reappointment to the HRA; whereas, Mr. Ellison's name
will be submitted to the City Council for annual appoint-
ment in January.
D. SUPPORTING DATA.
None
4. CONSIDERATION TO ELECT 1988 HRA OFFICERS.
A. REFERENCE AND BACKGROUND.
It has been brought to my attention several times by
Nr. Schrupp that the HRA consider the election of a
new Chairperson since the HRA has filled it's five
positions. However, in reading the HRA bylaws it states
an annual meeting shall be hold on April 6 of each year
at which time election of officers aro hold. The HRA
elects a chairperson, vice -chairperson, and secretary -
treasurer. The HRA may consider the oloction of officers
HRA Agenda - 11/4/87
at this time and amend the bylaws or wait until April to
elect officers. No alternative action or staff recommend-
ation given as this is a discussion item.
D. SUPPORTING DATA.
Copy of the HRA Bylaws.
5. CONSIDERATION TO SET 1988 HRA GOALS AND TO REVIEW THE
PRELIMINARY BUDGET.
A. REFERENCE AND BACKGROUND.
This not being a long agenda is an excellent opportunity
to discuss 1988 goals. Each year it is custom that each
commission list it's goals. The purpose of the Monticello
HRA is to assist projects that would not develop without
government assistance which would eliminate blight, provide
an adequate amount of low and moderate income housing, or
create jobs. Secondly, presented in the agenda is a copy
of the 1988 HRA Preliminary Budget established by the City
Administrator and HRA Director which was adopted by the
City Council. The $5,875 HRA salary proposed for 1988 would
be 18.81 of the Director's overall salary.
1988 Proposed Salary- Economic Development $25,400
1988 Proposed Salary- HRA $ 5.875
Total Proposed 1988 Salary $31,275
It remains somewhat of a confusion to me since the HRA
bylaws state that compensation of the Executive Director
shall be determined by the Authority, yet no discussion
has taken place to my knowledge with the commission.
Although, the Council has adopted the preliminary budget,
salaries have not been negotiated, therefore. I recommend
the Director's salary be discussed and the City Administrator
be advised. Salary negotiation expected to be completed
by January.
B. ALTERNATIVE ACTIONS.
1. Ratify the 1988 HRA's Director's proposed salary of
$5.875.
2. Not ratify the 1988 HRA's Director's proposed salary
and recommend an alternative amount.
C. STAFF RECOMMENDATION.
Staff recommends the HRA ratify the prop000d salary of $5,875
to be consistent with other city staff proposed salary
Increase of approximately 92. Remember negotiation never
Battle at proposed increases.
D. SUPPORTING DATA.
Copy of the 1988 Preliminary HRA Budget.
��- BYLAWS OF THE HOUSING
AND REDEVELOPMENT AUTHORITY
OF MONTICELLO, MINNESOTA
ARTICLE I - THE AUTHORITY
Section 1. Name of Authority. The name of the Authority shall be
the "Housing and Redevelopment Authority of Monticello, Minnesota."
Section 2. Seal of Authority. The seal of the Authority shall be
in the form of a circle and shall bear the name of the Authority and the
year of its organization.
Section 3. Office of Authority. The offices of the Authority shall
be at the Village Hall in the Village of Monticello, State of Minnesota,
but the Authority may hold its meetings at such other place or places as
it may designate by resolution.
I
ARTICLE II - OFFICERS
Section 1. Officers. The officora of the Authority shall be a Chairman,
a Vica-Chairman, and a Secretary -Treasurer.
Section 2. Chairman. The Chairman shall proeido at all meetings
of the Authority. Except as otherwise authorized by roaolution of the
Authority, the Chairman shall oign all contracto, doodo, and other inotrumonto
mado by the Authority. At each mooting the Chairman shall oubmit ouch
rocommondationa and information as he may consider proper concerning the
business, affairs, and policies of the Authority.
Section 3. Vice -Chairman. The Vico-Chairman shall perform the duties
of the Chairman in the absence or incapacity of the Chairman; and in case
of the resignation or death of the Chairman, the Vice -Chairman shall perform
such duties as are imposed on the Chairman until such time as the Authority
shall select a new Chairman.
Section 6. Secretary -Treasurer. The Secretary -Treasurer shall perform
the duties of a Secretary -Treasurer for the Authority.
Section 5. Executive Director. The Authority shall employ an Executive
Director who shall have general supervision over the administration of
its business and affairs, subject to the direction of the Authority. He
shall be charged with the management of the housing projects of Authority.
As assistant to the Secretary -Treasurer, the Executive Director in
his own name and title shall keep the records of the Authority, shall act
as Secretary of the meetings of the Authority and record all votes, and
shall keep a record of the proceedings of the Authority in a journal of
proceedings to be kept for such purpose, and shall perform all duties incident
to his office. He shall keep In safe custody the seal of the Authority
and shell have power to affix such seal to all contracts and instrumento
authorized to be executed by the Authority.
He shall have the caro and custody of all funds of the Authority and
shall dopooit the same in the name of the Authority in such bank or banks
as the Authority may oolect. The Socretary-Troasuror shall sign all orders
and checks for the payment of money and shall pay out and disburse ouch
monoyo under the direction of tho Authority. Except as otherwico authorizod
by resolution of the Authority, all ouch ordoro and checks shall be counter-eigned
by the Chairman. He shall keep regular books of accounts showing receipts
and expenditures and shall rondos to tho Authority, at each regular meeting
(or oftener when requested), an account of his transaction and also of
the financial condition of the Authority. He shall give such bond for
-2-
i
the faithful performance of his duties as the Authority may determine.
The compensation of the Executive Director shall be determined by
the Authority.
Section 6. Additional Duties. The officers of the Authority shall
perform such other duties and functions as may from time to time be required
by the Authority or the bylaws or rules and regulations of the Authority.
Section 7. Election or Appointment. The first Chairman shall, pursuant
to his appointment, serve in the capacity of Chairman until the expiration
of his term of office as Commissioner. The vice -Chairman, Secretary -Treasurer,
and, except in the case of the First Chairman, the Chairman shall be elected
at the annual meeting of the Authority from among the Commissioners of
the Authority, and shall hold office for one year or until their successors
are elected and qualified.
The Executive Director shall be appointed by the Authority. Any person
appointed to fill the office of Executive Director, or any vacancy horein,
shall have such term as the Authority fixes, but no Commissioner of the
Authority shall be eligible to this office.
Section S. Vacancies. Should the office of Chairman, Vice -Chairman,
or Secretary -Treasurer become vacant, the Authority shall elect a successor
from ito membership at the next regular meeting, and ouch election shall
be for the unexpired term of onid office. Mien the office of Executive
Director bocomao vacant, the Authority shall appoint a ouccoocor, so aforooaid.
Section 9. Additional Peraonnol. The Authority may from time to
time employ ouch personnel as it doema necoaaary to oxercioo its powers,
duties, and functions an prescribed by the Municipal Housing and Redevelopment
Law of Minnesota applicable thereto. The selection and componoation of
-].
such personnel (including the Executive Director) shall be determined by
the Authority subject to the lava of the State of Minnesota.
ARTICLE III - MEETINGS
Section 1. Annual Meeting. The annual meeting of the Authority shall
be held on the 6th day of April at 7:30 o'clock p.m. at the regular meeting
place of the Authority. In the event such date shall fall on a Sunday
or a legal holiday, the annual meeting shall be held on the next succeeding
secular day.
Section 2. Regular Meetings. Monthly meetings shall be held without
notice at the regular meeting place of the Authority on the tat Wednesday
of each month, at 7:30 o'clock p.m., unless the same shall be a legal holiday,
in which event said meeting shall be held on the next succeeding secular
t
day.
Section 3. Special Meetings. Special meetings of the Authority may
be called by the Chairman or two members of the Authority for the purpose
of transacting any business designated in the call. The call for a special
meeting may be delivered at any time prior to the time of the proposed
meeting to each -amber of the Authority or may be mailed to the buoin000
or home addroso of each member of the Authority at least two (2) dayo prior
to the data of ouch special meeting. At ouch opocial meeting no buolneoo
shall be concidorod other than as deoignated in the call, but if all of
the members of the Authority aro present at a special meeting, any and
all business may be transacted at such special meeting.
Section 4. Quorum. The powers of the Authority shall be vested in
-4-
the Commissioners thereof in office from time to time. Three Commissioners
shall constitute a quorum for the purpose of conducting its business and
exercising its powers and for all other purposes, but a smaller number
may adjourn from time to time until a quorum is obtained. When a quorum
is in attendance, action may be taken by the Authority upon a vote of a
majority of the Commissioners present.
Section 5. Order of Business. At the regular meetings of the Authority,
the following shall be the order of business:
1. Roll Call.
2. Reading and approval of the minutes of the
previous meeting.
3. Bills and communications.
4. Report of the Executive Director.
5. Reports of Committees. '
N
6. Unfinished business.
7. New business.
8. Adjournment.
All resolutions shall be in writing and shall be copied in the journal
of tho proceedings of the Authority.
Section 6. Manner of Voting. The voting on all questions coming
before the Authority shall be by roll call, and the yeas and nayo shall
be entered upon the minutes of ouch mooting.
ARTICLE IV - AMENDMENTS
Amendments to Bylaws. The bylaws of the Authority shall be amended
-5.
only with the approval of at least three of the members of the Authority
at a regular or a special meeting.
After discussion of the resolution, Commissioner LaBau moved that
said resolution be finally adopted as introduced and read. The motion
was seconded by Commissioner Brauch. The question being put upon the final
adoption of said resolution, the roll was called with the following result:
-6-
KRA
1988 BUDGET
FUND NO. 140
1987 1988
REVENUE
1511 Ad Valorem
$ 51550
$ 7,750
3582 Interest
2,000
600
3090 Application Fees
500
-0-
1513 Tax Increments
88,400
169,825
TOTAL REVENUE
f 1ff11f1/ff••f lfff•11f 1fff 111f fffffff if•ffffff lfffflffflf
$ 96,450 $178,175
lfffflffffffffffflf ff•
EXPENDITURES
Personal Services
7511 Salary, Regular
$ 4,900
$ 5,250
7515 PERA/Pension
250
225
7519 Social Security
350
400
Supplies
7521 Office Supplies
S 50
$ 25
Other Services and Charges
7536 Professional Services
$ 2,000
$ 2,000
7549 Legal Publications
100
150
7537 communication-Phone/Postage
50
-0-
7538 Travel -Conference -School
250
250
7548 Dues, Memberships, Subscriptions
50
-0-
7555 Miscellaneous
50
50
Debt Service
7568 Principal
$ 31,700
S 42,340
7569 Interest
1740400_
$ 49,100
19,885
TTTI'M
Transfers and Others
7566 Permanent Transfer to
Debt Service
$ 39,300
$107,600
TOTAL EXPENDITURES
$ 96,450
$178,175
36
7
31
FUND
lot
GENERAL
T
COMMUNITY DEVELOPMENT
'
ECONOMIC DEVELOPMENT
Id1988
BUDGET
1987
1988
Personal Services
7311
Salaries, Regular
$ 19,350
S 21,050
7315
PERA/Pension
850
900
7318
insurance, Medical 6 Life
1,050
1,600
7319
Social Security
1,400
1,600
7316
Allowances
400
250
$2TIW
2,4
Supplies
7321
Office Supplies
$ 100
$ 25
Other Services
and Charges
7336
Professional Services
$ 100
$ 10,000
7337
Communication - Phone/Postage
100
100
7338
Travel
400
400
7340
Printing 6 Binding
-0-
3,000
7376
Aid to Other Governments
5,000
5,209
�r
7348
Dues, Memberships, Subscriptions
-0-
�,abS
100
3rI'�'833
TOTAL COMMUNITY DEVELOPMENT
ECONOMIC
DEVELOPMENT
$ 28,750
S 44,225
7
31
HRA Agenda - 11/4/87
6. REPORTS:
a) Monticello Ford Property
Demolition specs for the above property have not been
prepared by John Simola at this point, therefore, it is
doubtful if demolition will occur this fall. At the
October Planning Commission meeting. I presented to the
commission the concept to amend the zoning map from B-4
to PZ -M at the location of the said property. This
change in zoning would be necessary to construct a low
income elderly housing project. The general consensus
of the Planning Commission was for the HRA to continue with
the initial plan for demolition and advertise the property
for sale for possible retail/commerical development. I
contacted David Kern at Taylor Surveying for construction
of a sign. His cost is $15.00 per hour for labor, all
materials, and installation. He suggested a 4x8 sign.
Rick Wolfateller indicated an ad in the Minneapolis
Sunday Paper would run about $100. Metcalf and Larson
are interested in the property for development of an
elderly project and with the prepayment on the borrower's
mortgage at the Ridgemont Apartments, Monticello's need
for low and moderate income housing increases. A needs
study is being conducted by a real estate firm for a
different interested developer. The property for such
development is in the area of Linn Street and 6th Street.
The person conducting the survey indicates a need in
Monticello as all current available LMI housing have waiting
list and most LMI residents are from Wright County. She
also indicated FmHA would look favorable at the Ford
location for funding because of the close proximity to
downtown shopping. I recommend the HRA authorize the
construction of a sign and discuss the possibility of
conducting a survey on the need for LMI housing in
Monticello. This to be a 1988 goal.
b) NAWCO Minnesota, Inc.
The HRA boving reduced the land coat by the use of tax
increment finance for the above company, thereby, created
now jobs for Monticello. I recommand you drive by the
fininhod plant located at 1724 East Oakwood Drive to view
the now structure which is a great asset to our community.
Part of the production equipment has arrived from Germany,
office equipment is to arrive this weak and production to
planned to begin in January.
c) Beverage Processin{t Company
Monticello remains in competition with St. Cloud and Mankato
for the home of this company. I expect to hear from the
consultants around the 10th of November regarding their final
decision which has boon delayed from the and of September.
If Monticello to tho selected home, the HRA will need to
consider the creation of a Tax Increment Economic District.
NRA Agenda - 11/4/87
Their instal building is a 120,000 sq ft facility with
location on 23.35 acres of land in the Oakwood Industrial
Park. Initial number of jobs is 35 with five year
projections to total 75 jobs and a total 250,000 sq ft
facility. This information should remain confidential.
d) Replat of Lots 9 and 10, Block 2. Oakwood Industrial Park.
These two lots which were acquired by the City approximately
a year ago, are being recommended for replatting from an
estimated 10 acres to six lots varying from 1 to 2 acres.in size.
A public hearing is scheduled at the Planning Commission
meeting on November 10th. A 60 ft width road and cul-de-sac
with the extension of city water and sewer utilities to
these parcels. John Slmola prepared city improvement costs
to total $75,156. At this time I have one potential buyer
and City staff plane to meet with O'Connors to consider
negotiation to relocate their business to one of these lots
in the Industrial Park. I have not had time to arrange this
meeting, please keep this confidential. SUPPORTING DATA is
a preliminary copy of the replat. Improvement construction would
begin in the spring.
e) fulfillment System. Inc.
Being aware that PSI relocated their key punch division
to St. Cloud and created 100 jobs. I contacted Mr. Peach
for retention of his company in Monticello. Mr. Peach
indicated the greater labor pool as his reasons for expansion elsewhere
., stating he had difficulty recruiting and maintaining the 40
key punch operator (full time and part time) in Monticello.
The greater available labor force in a larger community with
willing college students to hire part time were his reasons
for the St. Cloud location. Mr. Peach is leasing space in
St. Cloud and indicates the future of PBI staying in Minnesota
depends on the legislature decision to reconsider the increase
of minimum wages for fulfillment houses. Mr. Peach indicated
his disappointment in the dissolution of the Airport Commission
and the increase in property valuation in Monticello. I
told Mr. Peach the City had no control over the State's
mandate for the City to increase the property valuations
and also indicated Monticello had the lowest mill rate
in the state for 1987 as published by the Leaque of
Minnesota Cities.
att.
so
I.)4Ac.
4.50 At .
.o
1.53Ac
o"
�o
a
1.49 AC.
L �� vJ wta �l � " w •Tdl
1 `.. 1� t," 500 ,
\e6
Logo'
IT' Rc• raw �uNpAS Rd
� Io�eG �91
7,a S
ESTIMATED COSTS
3 MONTICELLO INDUSTRIAL PARR
LATS 9 b 10 SUBDIVISION
CONSTRUCTION COSTS
Water
TMrcu yds Coumn Ex $2/cu yd "
TOM 10" D.I.P. $20/ft "
$
9,200
1 -
10" Valve 6 Box $450 ea "
$
450
1 -
8" Valve 6 Box $400 ea -
$
400
1 -
7.5 ft Bury Hyd $900 ea "
$
900
4 -
6" Service Valves s Box $300 ea
$
1,200
120
ft 6" D.I.P. Water Service $15/ft
$
1,800
1 -
10"x10" Dry Tap $1,000
$
1,000
TOTAL WATER "
MUM
Sanitary Sewer
440' 1& PVC SDR26 $25/ft $11,000
1 STD Manhole $1,000 e $ 11000
1 - Oonstruct Drop at Manhole $2,500 - $ 2,500
4 - 10" Wyes $90 ea " $ 360
120 ft 6" SDR 26 Service Pipe $15 ft - $ 11800
TOTAL SANITARY SEWER " $I8,m
Street (40 ft 9T)
TMrcu yds Coumn Ex $2/cu yd "
$ 4,000
550 Tons Class V (6") $5.50 ton -
$ 3,025
270 Tone Bit. Base (2") $23 ton -
$ 6,210
270 Tone Bit. Wear (2") $27 ton -
$ 7,290
870 ft D Mod Curb $7/ft -
$ 6,090
0.5 Acre Black Dirt i Seed $1,800/acre
$ 900
Culvert $1,000 ea -
TOTAL STREET
$$,,100000
$28,515
TOTAL CONSTRUCTION COST "
$60,125
ENGR i ADMIN 254 ADD ON'S "
$15,031
$75,156
Estimated total of 10.17 acres after road construction:
$75,156 divided by 10.17 " $ 7,389.97 per acre
This does not include platting costa.
John E. Simola
Public Works Director
10/6/87
•
j MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY SPECIAL MEETING
`L Tuesday, Novmeber 24, 1987 - 7:OOAM
City Hall
Members: Acting Chairperson Lovell Schrupp, Ren Maus, Ben Smith,
Al Larson, and Everette Ellison.
1. Call To Order.
2. Consideration to Review and Award Final Bid for the Old Ford
Garage Demolition and Site Preparation.
3. Consideration to Approve Execution of Appraisals for Monti
Truck Repair, Stelton's Laundromat, and Jones, Manufacturing
Properties.
4. Other Business.
S. Adjournment.