HRA Agenda 02-12-1992AGENDA
MONTICELLO HOUSING AND DEVELOPMENT AUTHORITY
Wednesday, February 12, 1992 - 7:OOPM
City Hall
MEMBERS: Chairperson Al Larson, Ben Smith, Lowell Schrupp,
Everette Ellison, and Tom St. Hilaire.
STAFF: Rick Wolfsteller, Jeff O'Neill, and 011ie Koropchak.
1. CALL TO ORDER.
2. CONSIDERATION TO APPROVE THE JANUARY lb, 1992 HRA MINUTES.
3. CONSIDERATION OF AN UPDATE ON REQUEST FOR PROPOSAL FOR ABOVE
GROUND CLEAN-UP AND TANK REMOVAL/SAMPLING OF THE GILLE
PROPERTY.
4. CONSIDERATION TO DETERMINE SITE LOCATIONS FOR THE COTTEGE HOME
HOUSING CONCEPT.
b. CONSIDERATION TO ELECT 1992 HRA OFFICERS: CHAIRPERSON AND
VICE CHAIRPERSON.
6. CONSIDERATION TO REVIEW BDS, INC. BILLING.
7. CONSIDERATION TO REVIEW AND ACKNOWLEDGE RECEIPT OF THE 1991
ECONOMIC ACTIVITY REPORT, THE 1992 ECONOMIC DEVELOPMENT WORK
PLAN, AND THC 1392 DRE SURVEY RESULTS.
6. OTHER BUSINESS.
9. ADJOURNMENT.
I
MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, January 15, 1992 - 7:OOPM
City Hall
MEMBERS PRESENT: Chairperson Al Larson, Ben Smith, and Tom St.
Hilaire.
MEMBERS ABSENT: Lowell Schrupp and Everette Ellison.
STAFF PRESENT: 011ie Koropchak.
STAFF ABSENT: Rick Wolfsteller and Jeff O'Neill.
GUEST: Paul Weingarden, City Attorney
Kevin Schmitz and Pauline Carlson, Prestige
Builders.
1. CALL TO ORDER.
Chairperson Larson called the HRA meeting to order at 7:02 PM.
2. CONSIDERATION TO APPROVE THE DECEMBER 4, 1991 HRA MINUTES.
Ben Smith made a motion to approve the December 4, 1991 NRA
minutes, seconded by Tom St. Hilaire and with no corrections
or additions the minutes were approved as written.
3. CONSIDERATIOJI TO HEAQ ATTORNEY WEINGARDEN REVIEW THE PROPERTY
TAX FORFEITURE PROCEDURE.
Chairperson Larson welcomed Attorney Weingarden. Mr.
Weingarden informed the HRA h1 a property tax forfeiture
information was from the Minnesota Statutory, other State
departments, and the Hennepin County Tax Forfeiture Office.
Attorney Weingarden: Tax Delinquencies
1. Judgement taken 2nd Monday in May for previous years
delinquency, if missed in 1991 then Judgement is taken
May 1992.
2. Judgement Process:
A) Auditor publishes list of delinquent properties.
B) Publication for three weeks.
C) List delivered to Clerk of Court.
D) Clerk bids in name of State.
E) In suboequent years, amounts added to original. No
new judgement.
HRA MINUTES
JANUARY 15, 1992
Redemption Process:
A) From date of judgement -
B) From date of judgement -
seasonal recreational.
C) Use in first year of
determine classification
three years non -homestead.
five years homestead, ag,
judgement is taken to
Stopping Process:
A) Prior to forfeiture or sale or condemnation,
homeowner can enter confession of judgement
(279.37).
a) Non or homestead, or commercial over $100,000
- 845 for plan, 10% down and balance over 9
years, must keep current.
b) Commercial under $100,000 or vacant land - $45
for plan, 20% down and specials paid, and
balance over 4 years, must keep current.
c) If payment missed, notice is Bent and
forfeiture process starts.
Forfeiture Process:
May 14 is operative date.
A) As redemption period approaches (after January 1),
auditor prepares notice of expiration of
redemption.
a) Notice served personally on occupants or
(attention of vacancy attached). Publish
notice three weeks.
b) Certify mail to: Mortgagees, State and
Federal Tax Authorities
if liens, and taxpayer of
last known.
C) Expiration within sixty days of service or May
14, whichever is later. This vests title in
State.
d) File Auditor's certificate with County
Recorder.
e) All taxes and specials are "cancelled" by
forfeiture. (County has right to sell
property, not release of State or Federal
liens.)
B) After forfeiture homeowner and interested parties
can petition for repurchase (282.241-341).
a) One year after Rx for non -homestead.
b) Technically never (always) for homestead, ag,
seasonal, etc. unless cut off by sale or
condemnation.
NRA MINUTES
JANUARY 15, 1992
c) Repurchase restores "status quo" - does not
satisfy mortgages or convey title to
mortgagees.
d) Vote of County Board must be majority only.
6. Sale Procedure:
A) County Board classifies property either as
conservation or non -conservation.
B) Letter to City and DNR with following (not
necessary for township):
a) Advises of options if:
Private sale to adjoining owners where lot is
unbuildable (282.01 sub 2a), Private sale to
municipality (282.01 sub la), or Public sale.
b) Notified of classification (non -conservation
or conservation).
c) Request amount of specials on property.
e) City given 90 days to respond, if no response,
County can sell at public sale.
PRIVATE SALE TO CITY:
A) Within 90 days of notice (or on City's Initiative),
City asks County to withhold land from public sale.
County mast comply.
B) City (or entity such as HRA, EDA) applies to
Commissioner of Revenue for private sale.
C) Above application requires recommendation of County
board (letter).
D) Sale not mandatory - says "may"
a) if positive recommendation, rubber stamps.
E) Must be for authorized public purpose.
F) No requirement City pay - Hennepin County gives it
away - even if pay, 90% goes back to City for
specials anyway. Can then reassess after back in
private hands.
0) If property sale is for more than specials, dollars
are split, 10% school district, 40% county, and 20%
city.
11) State and Federal Tax liens not released. Must
notify and negotiate for release. They have
formula, etc.
I) Terminates opportunity to repurchase.
J) Must do Quiet Title.
Private sale is quick, controlled, and cuts off right to
repurchase.
HRA MINUTES
JANUARY 15, 1992
PUBLIC SALE:
A) Publish notice of sale at Court House.
8) No requirement for annual sales; held as needs
require and action of County.
C) Sale is either cash or 5-10 years Contract for
Deed.
D) Same situation with Federal Tax liens.
E) No right of redemption - must do Quiet Title.
F) Ends repurchase option.
G) Money goes first to administrative expenses, then
to City to pay back specials, then to formula if
dollars is there.
H) City can reassess under 429. Must still show
benefit.
I) Purchase price determined by County Assessor.
Cleanup:
A) State and County not liable for cleanup of tax
forfeited land, believe prior owner liable.
B) City should not obtain title if contaminated,
- "innocent landowner" exception, - must check out
statue 86 acquisition.
Advise was to check Environmental Claim (issue), check and ask
title questions, and talk to County about land use and
classification.
Tom St. Hilaire made a motion for City Staff to prepare a
request for proposal and bids to clean up the Gille Property
both above -ground and below -ground. The motion was seconded
by Hen Smith. Discussion determined to first ask the County
for permission to enter the Gills property for site evaluation
and that RFP's be made available to certified contractors only
for underground tank removal. Without further discussion the
motion passed unanimously.
CONSIQERATI ON a0 HEAR KEVIN SCHMITZ PRESENT THE COTTAGE HOME
HOUSING CONCEPT,
Chairperson Lareon gave a brief background of his conversation
with Mr. Schmitz at the Expo '91, stating the HRA's interest
In upscale townhome housing for the elderly.
Mr. Schmitz informed the HRA that the St. Cloud market for
attached townhomes was not positive; however, the cottage home
concept with a five foot separation between homes has been
very successful. At present, Prestige Builders are working
with the City of Sartell for development of this concept.
Price range in Monticello estimated at 880,000 to 8120,000
without lot. The two plane shown the NRA had 1,400 to 1,500
HRA MINUTES
JANUARY 15, 1992
square feet of first floor living space with attached garage,
two or three bedrooms, basement, three season sun room, etc.
The HRA was interested in the Prestige Builders concept.
The HRA could participate by locating a site and establishing
a Redevelopment District for demolition of blighted
structures. Attractive site locations mentioned were along
River Street/Front Street. Location sites are to be
identified for the next HRA meeting.
5. COj1SIDERATIO[i TO ELECT 1992 HRA OFFICERS: CHAIRPERSON AND
VICE CHAIRPERSON.
Upon the suggestion of Chairperson Larson the election of
officers was tabled until the next meeting to allow a majority
of the HRA members to be present.
6. CONSIDERATJOU TO gEVIEW THE HRA CENTRAL MONTICELLO
REDEVELOPMENT PROJECT AREA AND TIF DISTRICT AREAS.
Tabled.
T. CONSIDERATION TO REVIEW BDS, INC. BILLING.
The HRA authorized the payment of the BDS, Inc. billing and
will review the billing at the next meeting.
8. CONSIDERATION OF PROJECT UPDATES.
Koropchak informed the HRA that the Aroplax project seems to
be alive again for Monticello; however, no further funding
application process will be done until the City has a location
commitment from Mr. Schoen.
The search for a site location for the 20,000 sq ft basic
design facility for a subsiduary of Ultra Pack, Inc. is on
hold while the company researches coat and design of machinery
and equipment. In talking with Attorney John Dean of Holmes
and Graven, he suggested the HRA recommend the pay-as-you-go
finance method to protect the NRA is case of default. To give
the property away leaves no recourse for the HRA. The HRA
suggested a low purchase price (market value) to encourage a
quick sale of the property.
OTHER BUSINESS.
Koropchak asked the HRA of their interest in a townhome
development for moderate income families ($20,000-$25,000).
With financing from the Minnesota Housing Finance Agency, the
$52,000, 1,130 sq tt homes are rented for ca coot of $439 per
month. The townhomes private back driveway are centered
HRA MINUTES
JANUARY 15, 1992
around playgrounds and green space with the front entrance
facing the public street. Mr. Larry Olson of Metro Plains
Development, Inc. is marketing the concept of which they
maintain ownership. Developments have occurred in the
Dakota's and Minnesota. The HRA was not interested in the
concept. however, acknowledged the developer's right to
proceed.
Koropchak reviewed the projected property tax increases for
payable 1992 with the HRA.
Koropchak noted the amortization schedule enclosed in the
agenda for HRA loan payback to the City for Lots 8 & 6, Block
3, Oakwood Industrial Park.
10, ADJOURNMENT.
The HRA adjourned at 8:45 PM.
3&�-
011ie Koropchak, HRA Executive Director
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