HRA Agenda 11-04-1992i
AGENDA
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, November 4, 1992 - 7:00 p.m.
City Hall
MEMBERS: Chairperson Al Larson, Ben Smith, Lowell Schrupp,
Everette Ellison, and Tom St. Hilaire.
STAFF: Rick Woltateller, Jeff O'Neill, and 011ie Koropchak.
GUESTS: 7:00 p.m. William Jacobson; The Housing Alliance.
7:30 p.m. William Kemp; Short, Elliott, Hendrickson, Inc.
(SEH).
Barb Schwientek; Monticello -Big Lake Community Hospital.
1. CALL TO ORDER.
2. CONSIDERATION TO APPROVE THE AUGUST 5 AND SEPTEMBER 29, 1992
HRA MINUTES. 1
3. CONSIDERATION TO HEAR FINANCIAL OPTIONS AND PROFESSIONAL
ASSISTANCE AVAILABLE FOR SENIOR CARE HOUSING (MR. JACOBSON AND
MR. KEMP).
4. CONSIDERATION TO REVIEW AND EXECUTE THE INDEMNITY AGREEMENT
AND THE TAX -FORFEITED LANDS CONVEYANCE FORM FOR OUTLOT A,
COUNTRY CLUB MANOR.
5. CONSIDERATION TO REVIEW HRA BILLINGS AND PROJECT WORK
PERFORMANCE OF ATTORNEYS AND BDS, INC.
6. OTHER BUSINESS.
7. ADJOURNMENT.
9
MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Tuesday, September 29, 1992 - 6:65 PM
City Hall
MEMBERS PRESENT: Chairperson Al Larson, Ben Smith, Lowell
Schrupp, and Everette Ellison.
MEMBER ABSENT: Tom St. Hilaire.
STAFF PRESENT: 011ie Koropchak.
STAFF ABSENT: Rick Wolfsteller and Jeff O'Neill.
1. CALL TO ORDER.
Chairperson Al Larson called the HRA meeting to order at 6:65
PM.
2. CONSJDFRATION TO REVIEW FO& #4ENDMENT THE PRIyATE
RED,EVELOPMENT CONTRACT BETWEEN JERALD J. AND MARY E. SCHOEN
AND THE HRA.
Upon the request of the redeveloper, the HRA members were
asked to review the executed Private Redevelopment Contract
between Jerald J. and Mary E. Schoen and the HRA for possible
amendment.
Koropchak presented HRA members with a copy of the August 5
HRA minutes recording the HRA's acceptance of the said final
draft of the Private Redevelopment Contract between the
Schoons and the HRA. Secondly, the NRA received an updated
Aroplax project cost to the City of Monticello through August
15, 1992. Total charges from Business Development Services,
Holmes 8 Graven, and Paul Weingarden were $19,966.40.
Next, the HRA received a copy of the requested contract
amendments as provided by Mark Tebelius, Mr. Schoen's
attorney. Those being: One, elimination of the $21,500
Letter of Credit or request to provide only through 1996:
second, amendment of the minimum improvements completion date
from January 2, 1993 to February 28, 1993; and thirdly,
various amendments to delete the minimum improvements
insurance, see Section 5.1.
Koropchak informed the NRA that the executed contract states
the Letter of Credit is reviewed annually for renewal by the
HRA for the duration of the TIF district. The January
completion date coincides with the TI Guarantee Acticle and
y establishes contract default. Next, the insurance section
requires proof of insurance and proof of payment, and in the
•
HRA MINUTES
SEPTEMBER 29, 1992
PAGE 2
event the minimum improvements are destroyed the HRA would
receive the insurance net proceeds fox, reconstruction. John
Dean, HRA Attorney, stated, "If this is a lender's requirement
than the HRA could consider lender subordination in the event
of bank foreclosure but recommended no subordination to the
redeveloper." Lastly, Koropchak reminded the HRA that the
$15,000 loan at 8% interest rate was initiated to recover part
of the HACA lose; therefore, pre -payment rights should not be
granted because of the need for the principal and interest
payback.
Koropchak outlined the RRA's alternatives: One, do not amend;
second, amend all requests; third, amend a portion or portions
of the requests; or fourth, amend requests with a reduction of
TIP assistance. TIP District No. 1-12 will collect tax
Increment over seven years.
After brief comments from each HRA member regarding the
concern of the lender's need for HRA subordination and the
risk of an economic development project not materializing, It
was the consensus of the HRA to stick with the original
executed Redevelopment Contract. Al Larson made a motion
reaffirming the accepted terms and conditions of the original
executed Private Redevelopment Contract between Jerald J. and
Mary E. Schoen and the HRA, executed August 24, 1992.
Everette Ellison seconded the motion and without further
discussion the motion passed unanimously. The HRA felt the
City has been supportive of the Aroplax project and the LIRA
believes in the deliverance and follow -though of a sealed -
executed document.
3. OTHER BUSINESS.
The HRA agreed to inviting with Mr. Bill Kemp to an HRA
meeting to inform members of new elderly housing development
financing and to extend an invitation to Barb Schwientek.
The LIRA did not act on the tax forfeiture land document but
will review so at the next meeting.
4. ADJOURNMENT
The NRA meeting adjourned at 7:20 PM.
oma, \.<VtC04;j.,kg14 J
011ie Koropchak, HRA Executive Director