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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.