HRA Agenda 07-02-1997AGENDA
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday. July 2,1997 - 7:00 p.m.
City Hall
MEMBERS: Chair Brad Barger, Vice Char Steve Andrews, Darrin Lahr, Bob Murray, and Dan
Frie.
COUNCIL LIAISON: Roger Carlson.
STAFF: Rick Wolfsteller, Jeff O'Neill, and 011ie Koropchak.
GUEST: Mark Ruff, Ehlers and Associates, Inc.
I . CALL TO ORDER.
2. CONSIDERATION TO APPROVE THE JUNE 4, 1997 HRA MINUTES.
3. CONSIDERATION OF ADDING ITEMS TO THE AGENDA.
4. CONSIDERATION TO REVIEW HRA FINANCIAL REPORTS FOR PREPARATION '
OF 1998 HRA BUDGET.
5. CONSIDERATION TO ADOPT A RESOLUTION AMENDING THE HRA BYLAWS.
6. CONSIDERATION TO ADOPT THE DOWNTOWN AND RIVERFRONT
REVITALIZATION PLAN FOR SUBMITTAL TO THE PLANNING COMMISSIION.
7. CONSIDERATION OF LEGAL OPINION RELATING TO REMOVAL OR
DEMOLITION OF THE GARAGE AND SHED LOCATED AT 220 FRONT STREET
AND AUTHORIZATION THEREOF.
8. CONSIDERATION TO AUTHORIZE PAYMENT OF MONTHLY BILLS.
9. CONSIDERATION OF PROJECT UPDATES:
o) Redevelopment District No. 1-22 (Homestead Center project. mall redevelopment.
Ferrellgas rekxation, and downtown rehab).
b) Allied Companies/Midwest Graphics Project.
10. OTHER BUSINESS.
II. ADJOURNMENT.
MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, Jane 4,1997 - 7:00 p m.
City Han
MEMBERS PRESENT: Chair Brad Barger, Datrin Lahr, Bob Murray, and Dan Frie.
MEMBER ABSENT: Steve Andrews.
COUNCIL LIAISON PRESENT: Roger Carlson.
STAFF PRESENT: 011ie Koropchak.
STAFF ABSENT: Rick Wolfsteller and Jeff O'Neill.
GUESTS: Kristin Graham. Project Manager, Homestead Housing Center
Fred Patch, Chief Building Official
I . Ce`II to order -
Chair Barger called the HRA meeting to order at 7:00 p.m.
2. Consideration to app= the May 7. 1997 HRA minutes,
Murray noted a grammar error and requested amending the word "raise" to "raze" on
Page 3, Item 5. Paragraph 2 of the minutes. Dan Frie made a motion to approve the May
7, 1997 HRA minutes with the above requested amendment. Bob Murray seconded the
motion and with no further corrections or additions, the minutes were approved as
amended.
3. Consideration to adding items to the agenda
Koropchak added two items to the agenda under item 10: Consideration to authorize
payment of monthly bills and consideration for removal of a garage and shed at 220 Front
Street (HRA parcel).
4. Consideration to bear a presentation by Kris in Graham - Preliminary concco of a multim
housffinu senior center.
Fred Patch, Chief Building Official and on acquaintance of Kristin, introduced Kristin
Graham. Project Manager for Homestead Housing Center. Additionally, he noted a
HRA MINUTES
JUNE 4,1991
clarification stating Homestead Housing Center is a non-profit organization and the
cooperative is owned and controlled by individuals who live in the housing centers. In -
other -words, it is an owner -occupied housing center for the elderly not a senior center.
Fred continued by identifying the subject area for discussion. The proposed location hes
within the vicinity of the westerly end of Front Street (portions of Blocks 55, 56, 62, 63).
He noted the proposed transitional housing for seniors was a natural for the area as the
project improves the river frontage, increases density. serves as a buffer between single
residential and commercial zones, and enhances the trail system Combined with upscale
mufti -family rental units and the proposed hotel and park redevelopment projects, the
overall redevelopment is consistent with the HRA and MCP goals and appears to make
good sense.
Kristin stated Homestead Housing Center has several corporate sponsors. When all the
units of a project are sold, there is no mortgage and the cooperative is owned by the
occupants (the shareholders). The monthly fee includes everything but cable TV and
tele� and there are no replacement costs. It generally takes 12-18 months for
construction of a facility and 40% of the units must be pre -sold. The Cooperative
Development Foundation (CDF) provides dollars for a project in the form of a revolving
ban fund. In the use of Chisago Lakes, CDF provided $70,000 for pre -development and
land option costs and the community committed $25,000 as development seed money
e which is returned if the project proceeds and generally is a grant if the project doesn't go.
At this time, no market study has been completed for the Monticello area. Qualifications
include adequate financials, 55 years of age or over, and capable of living independently.
Typically, there are five floor plans which range between $75 to 5125 per square foot.
Low income Levels do not support these units. Generally, an annual income level of
$25,000 is necessary to support the cooperative. Upon death the unit goes to the estate
and only to the cooperative if there is a buyer's waiting list. The advantages of a
cooperative is lower costs for the common areas and the shareholders are owners.
Because Homestead is a non-profit organization they purchase clear hand and need
assistance in acquisition and clearance of parcels. Recognizing the Homestead parcels
would generate less tax increment, the proposed upscale multi -family development could
lend support to the cooperative project. The Mississippi Shores is rental units and the
cooperative is owner -occupied units.
HRA commissioners tilted the Homestead Housing Center concept and found it to be a
great opportunity. The concept provides the elderly with security and pride through the
value of home ownership. The commissioners gave a green light to proceed: Homestead
to initiate a market study of the Monticello area, commissioners to visit Homestead
project in Cross Lake, and Koropchak to talk to Ehlers and Associates relating to
preliminary concept and to contact a developer(s) for interest in the multi -family housing
HRA MINUTES
JUNE 4, 1997
project. One HRA commissioner felt a request for proposal (RFP) from the HRA may
lead credibility, serve as a checks and balance, and send a message of intent to proceed.
Koropchak to check if the HRA is required by law to obtain RFPs and to verify that
income level limits are not a requirement of Redevelopment Districts. Members thanked
Kristin and Fred for their presentation.
5. Consideration to diKuss the status of the Downtown and Riverfront Revitalization Plan
HRA members were provided with a letter of recommendation from left O'Neill relating
to the procedure for approval of the revitalization plan. The members discussed whether
it most appropriate for the HRA to approve the plan before or after the public hearing of
the Planning Commission or perhaps hold a joint meeting. Noting that the HRA approval
submits the plan to the Planning Commission as an amendment to the Comprehensive
Plan, the following recommendation and action was taken:
1. Based on O'Neill's recommendation that the MCP Board of Directors approve the
plan prior to the HRA approval the HRA commissioners hoped all MCP Board of
Directors had the opportunity to review the plan prior to approval of the plan by
the MCP Board of Directors.
2. Darin Lahr made a motion for the HRA to consider adoption of the Downtown
and Riverfiont Revitalization Plan for submittal to the Planning Commission for
consideration as an amendment to the comprehensive plan at the regular HRA
meeting of July 2, 1997, and recommended the Planning Commission at the regular
meeting of July 1, 1997, call for a public hearing to be held and to consider the
amendments to the comprehensive plan at the regular meeting of the Planning
Commission in August. Bob Murray seconded the motion and with no further
discussion, the motion passed unanimously.
6. Consideration to gm; c n+ission to the Downtown Merchants Associntion for a one-dav
use of the HRA West Broadway lot.
Darrin Lahr made a motion granting permission to the Downtown Mcrchants Association
for a one day use of the I I 1 West Broadway parcel subject to the Merchants Association
carrying liability insurance and returning the property to its original state. The one-day
use for Saturday, August 9, 1997, the date of the farmer's market. Dan Frie seconded the
motion and with no fiuther discussion, the motion passed unanimously.
7. Consideration to discuss HRA Bylaws for paten i 1 amending
At the May HRA meeting, commissioners tabled any discussion for revision of the Bylaws
HRA MINUTES
JUNE 4, 1997
until June allowing more time to compare the Monticello bylaws with the bylaws of the
Columbia Heights HRA and the Burnsville EDA. Koropchak began by noting
housekeeping item such as proper use of gender and annual meetmg date and time and
that no provision exists relating to commissioners. HRA commissioners requested
Attorney Bubul review the suggested amendments outlined by Koropchak for submittal to
the HRA for review and approval in July.
HRA members called for a special meeting date of Wednesday, June 18,1997, 7 :00 p.m,
to begin preparation of the 1998 HRA Budget.
Consideration of =Jectupdates-
The commissioners accepted the written update and agreed to consider the Allied
Companies/Midwest Graphics project at the special meeting of June 18 if the developers
so requested or perhaps the city could utilize the new "abatement authority" for this
proposed project.
a) Brad Barger made a motion to approve the May HRA bills. Seconded by lam Frie
and with no further discussion, the motion passed unanimously.
b) Koropchak informed HRA members that the Building Department has requested
Mr. O'Connor to remove personal property from the garage and shed located on
the HRA -Front Street parcel in preparation of a request for bids for removal or
demolition of the structures. It is assumed the Budding Department cited the
structures as a nuisance or a hazard. Members asked -why the rush and what was
being Stored'"? More importantly, HRA members were concerned about tb%+
legal right as a public body and questioned if an -unlawful detainer" was necessary.
Darrin Lahr trade a motion authorizing the Building Department to seek bids for
removal or demolition of the garage and shed located at 220 Front Street and
payment thereof subject to legal advise relating to the HRA's liability of
notification to remove and the removal of personal property. Seconded by Bob
Murray and with no further discussion, the motion passed unanimously.
HRA MINUTES
JUNE 4, 1997
The HRA meeting adjourned at 9:15 p.m.
011ie Kompchak, Executive D'uector
HRA AGENDA
JULY 2, 1997
r. I: T?'+ n>M-;,jor%ririiwj7,TriT=- , rr TVIV, W.TrM
As of June 25, the City Administrator has not received a copy of the tax increments
collected for the fist half of 1997 and projected for the second half of 1997 from the
county. 1 telephoned Rod Bunting at the County Auditor's Office and he promised to
deliver the copies tonight or tomorrow. Upon Ehlers and Associates receiving this
information and to ensure accuracy, Mark Ruff requests adequate time for preparation and
plans to submit the reports to HRA members at the July 2 meeting. This still allows
sufficient time for the HRA to prepare its budget.
l
/r HRA AGENDA
JULY 2, 1997
$. Consideration to adopt a resolution amending the HRA Bylaws
A. Reference and backg=nd.
At the June meeting of the HRA, the commissioners requested Attorney Bubul review the
suggested changes to the original bylaws as outlined by Koropcbak for submittal to the
HRA for review and approval in July.
The original and revised Bylaws of the Monticello HRA were mailed to Attorney Bubul
on June 20, 1997. It is Attorney Bubul's intent to review the revised bylaws for comment
by the 27th of June. Assuming such, the enclosed Bylaws have been reviewed by Bubul
and corrected for HRA consideration to amend via the enclosed resolution. The
highlighted areas are the suggested revisions. Per the Nlinnesota Statute, only the HRA
amends the Bylaws; however, I suggest the HRA forward the Bylaws to the City Council
for informational purposes only.
B. Alternative Actiow
I . A motion to adopt the resolution amending the HRA Bylaws as presented.
2. A motion to deny adoption of the resolution amending the HRA Bylaws.
3. A motion to adopt the resolution amending the HRA Bylaws with the following
modifications.
4. A motion to table any action.
C. Recommendation.
Recommendation is to adopt the resolution amending the bylaws as per the advise of
Attorney Bubul.
D. $Ilpno W&1h=
Bylaws with highlighted revisions and copy of the resolution for adoption.
Jun 27 •97 09:33 KENNFDv & gZA,,W t+
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I Jane 26.1997
I
TO: 011le Umpchak
FROM: Steve Bubul _
RB: HILA BylAws
(
IU only changes In the draft HRA By -Laws are a follows:
Sedioa 3, Special Medings Add at rhe end:
Notion of any Vedad meeting shall be given In accordance wkh Minnesota Statutes, ,
Section 471.705. suhd. Ic or any successor staaue regarding notion of meetings of public
bodtca
New Article or Secdon 1 suggest adding a section as follows:
Execution of Cmncts, All contracts, notes. and other wriuea agseerrumts or inowntnn
to which the Authority is a parry or signatory or by which the Authority may be bound
shall be executed by the Chair and Executive Director. If the Bacutive Dirccwr It absent
or otherwise cable to execute a document. the Secretary-7Yeasum may execute rho
document
Name of AsAAerity 1 note tW die original by-laws say the name of the Authority shall be the
"Housing sad Redevelopmut Authority of Monticello. Minnesota " However, the HRA statists
actually indicates that HRAs aro brown as the "Housing and Redevelop wat Authority in and
for the City of ' TRm is the form used in most of your dmonems. 1 suggest the name
In the by-laws be cMnged to reflect that Or. if you prefer to heap the aurae in the original by-
laws. we should nub that cease to all official doeun*M from Imre oa. One word of caution:
I believe we have used the "la and for the City" foram on deeds when the HRA has acquired
f property. Them is mm Ukd hood of conNsion if the formal same diang;es now.
1 will be out of the of im On Friday until about twos. I hope these comments are helpful. U you
have Questions, all me F+aiday afternoon.
� sasu.ru
PROPOSED REVISION
BYLAWS OF THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO, MIIHNESO'PA
June 27, 1897
ARTICLE I
THE AUTHORITY
Section 1. Name of Authority. The name of the Authority shall be the "Housing
and Redevelopment Authority in and for the City 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 thp Authority- Place of Meeting. The office of the Authority
shall be at such place in the city of Monticello, Minnesota, as the
Authority may from time to time determine by resolution. Regular and
special meetings of the Board of Commissioners shall be open to the
public and shall be held in Monticello City Hall at 250 East Broadway,
Monticello, Minnesota; provided, however, that upon three days
written notice to the Commissioners of the place of such meeting, any
regular or special meeting may be held at such place within the city of
Monticello as the notice shall designate.
Section 4. Poiners of the Anthodtr. The Authority, by and in its corporate
name, shall have and exercise all powers, functions, rights, and
privileges pursuant to Minnesota Statutes 469,001, @L=q,
ARTICLE II
COMMISSIONERS
Section 1. Authari The business and affairs of the Authority shall be
managed by or under the authority of the Board of
Commissionem except as otherwise permitted by statute.
Section 2. Number. Quaiifieatti_on. and rem af There shall be five
Commissioners appointed by the Mayor of Monticello and
approved by the City Council. Commissioners shall be natural
persons, at least IS years of age, and mast reside in the city of
Monticello. Commissioners shall serve a term of five years with
one Commissioner's term expiring each year.
eruWSARA: &2747 Popo I
Section 3. Vacancies. Vacancies on the Board of Commissioners occurring
by reason of death, resignation, removal, or disqualification
shall be filled for the unexpired term by the Mayor in
accordance with the procedures set forth in Article 11, Section E.
Section 4. Removal. For inef cieney or neglect of duty, or misconduct in
office, a Commissioner may be removed from office by the City
Council in accordance with Minnesota Statute 469.010.
ARTICLE III
OFFICERS
Section 1. Office The Officers of the AuthorityshaH;9 . A. _G. f4w=amo4g
Am- :. ; , ' , , a shall consist of a Chair, Vice -Chair, and a
Secretary -Treasurer. A Commissioner shall not hold more than
one of the above-named offices at the same time.
Section 2. lhaii. The Chair shall preside at all meetings of the Board of
Commissioners if present. Except as otherwise authorized by
resolution of the Board of Commissioners, the Chair shall sign all
contracts, deeds, and other instruments made by the Authority. At
each meeting, the Chair shall submit such recommendations and
information as considered proper concerning the business, affairs, and
policies of the Authority. Except as otherwise provided by resolution of
the Board of Commissioners, all such orders and checks shall be
countersigned by the Chair.
Section 3. Vic - . nir, The Vice -Chair shall perform the duties of the Chair in
the absence or incapacity of the Chair; and in case of resignation or
death of the Chair, the Vice -Chair shall perform such duties as are
imposed on the Chair until such time as the Board of Commissioners
shall select a new Chair.
Section 4. Ser. n -Tre_ nye_. The Secretary -Treasurer shall perform the
duties of the office of Secretary -Treasurer and-sltatl*erside at all
o/the
n The Secretary -Treasurer may delegate
the responsibility for recording the Minutes of the Board of
Commissioner meetings to the Executive Director or to the
Authority Office Secretary as is determined appropriate by the
Secretary -Treasurer. The Secretary -Treasurer shall sign all orders
and checks for the payment of money and shall pay out and disburse
such moneys under the direction of the Authority.
BYLAWS MRA: 6127197 Pogo 2
Section 5. Ad ; io al Dutips. 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 6. Flection or AMpaintment. The Chair, Vice -Chair, and Secretary -
Treasurer shall be elected at the annual meeting of the Board of
Commissioners fivm among the Commissioners of the Authority
and shall hold office for one year or until their successors are
elected and qualified
Section 7. Vacancies. Should the office of the Chair, Vice -Chair, or Secretary -
Treasurer become vacant, the Board of Commissioners shall elect a
successor from its members at the next regular meeting, and such
election shall be for the unexpired term of said office.
ARTICLE W
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 Board of Commissioners. As assistant to the Secretary -Treasurer,
the Executive Director shall ensure that proper records of the Authority are
maintained The Executive Director (orJW designee) shall act as Secretary
of the meeting of the Board of Commissioners and shall keep a record of the
proceedings in ajournal of proceedings to be kept for such purposes (the
minutes of the proceedings are to be signed by the recorder plus the
Authority Commissioner acting as Chair at the meeting). The Executive
Director shall perform all duties incident to the Executive Director position as may
be assigned by the position description as approved by the Board of Commissioners.
The Executive Director shall keep in safe custody the seal of the Authority and
shall have the power to affix such seal to all contracts and instruments authorized
to be executed by the Authority.
The Executive Director shall have the care and custody of all funds of the Authority
and shall deposit the same in the name of the Authority in such bank or banks as
the Board of Commissioners may select. The Executive Director shall be charged
with the management of the housing projects of Authority.
The Executive Director shall keep regular books of accounts showing receipts and
expenditures and shall render to the Board of Commissioners, at each regular
meeting (or more often when requested), an account of his/her transactions and also
of the financial condition of the Authority. The Executive Diroctor shall give such
bond of the faithful performance of duties as the Board of Commissioners may
determine.
e`Mwe.MRA: SIM? Paas 3
The Executive Director shall be appointed by the Board of Commissioners. Any
person appointed to fill the office of Executive Director, or any vacancy therein,
shall have such tern as the Board of Commissioners fixes, but no Commissioner of
the Board of Commissioners shall he eligible to this office. When the office of
Executive Director becomes vacant, the Board of Commissioners shall appoint a
successor, as aforesaid.
%—W'.08
The compensation of the Executive Director shall be dined by the Board of
Commissioners.
ARTICLE V
ADDITIONAL PERSONNEL
The Board of Commissioners may from time to tirne employ such personnel as it
deems necessary to exercise its power, duties, and functions as prescribed by the
Municipal Housing and Redevelopment Law of Minnesota applicable thereto. The
selection and compensation of such personnel (including the Executive Director)
shall be determined by the Board of Commissioners subject to the laws of the State
of Minnesota.
ARTICLE VI
MEETINGS
Section 1. Annual M otinp. The annual meeting of the Board of Commissioners
shall be held on the first Wednesday of .Aq.: \ at 7 p.m. at the
regular meeting place of the Board of Commissioners; provided,
however, that the date/time of the annual meeting may be
postponed to a subsequent date/time upon the vote of a majority
of Commissioners in office at any time taken at any regular or
special meeting.
Section 2. Re;dnr Meetings. Monthly meetings shall be held without notice at
the regular meeting place of the Board of Commissioners on the first
Wednesday of each month at 7 p.m. unless the same shall be a legal
holiday, in which event said meeting shall be held on the next
succeeding secular day. In the event the date/time/meetings place
of a particular meeting must be changed, the Chair may make
such change deemed necessary by notifying all Commissioners
by delivering (by stat) a mice to their home address at any
time prior to the meeting or mailing a notice to the business or
home address at least three (3) days prior to the date of such
regular meeting.
Section 3. gxdnl Meeting Special meetings of the Board of Commissioners
may be called by the Chair or two members of the Board of
Commissioners for the purpose of triumacting any business designated
aYLAvvs.MRA: V27167 Pap a
in the call. The call (including location of meeting) for a special
meeting may be delivered at any time prior to the time of the proposed
meeting to each member of the Board of Commissioners or may be
mailed to the business or home address of each member of the Board of
Commissioners at least three (3) days prior to the date of such special
meeting. At such special meeting, no business shall be considered
other than as designated in the call; but if all of the members of the
Authority are present at a special meeting, any and all business may
be transacted at such special meeting. Notice of any special
meeting shall be given in accordance with Minnesota Statutes,
Section 471.708, subd. Ic, or any successor statute regarding
notice of meetings of public bodies.
ARTICLE VII
QUORUM
The powers of the Authority shall be vested in the Commissioners thereof in office
from time to time. Three Commissioners constitute a quorum (except as noted
below) 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
Board of Commissioners upon a vote of a majority of the Commissioners present
(except as noted below).
Exception: In regard to action on the annual Authority operating budget, or
revisions thereto, there must be at least four Commissioners present, and the
majority of those present must vote in favor of such for the matter to be
approved.
ARTICLE VIII
ORDER OF BUSINESS
Section 1. Order
of BuainPtia. At the regular meetings of the Board of
Commissioners, the following shall be the Order of Business:
1.
Roll call
2.
Reading and approval of minutes of the previous meeting
3.
Items not contained in the agenda
4.
Ghttustans
5.
New businosa �1
7.
Bills and communications
6.
Report of the Executive Director
8.
Adjournment
BMLAWS.MRA: WPM?
Papa 5
t
All resolutions shall be in writing and shall be copied in the journal of
the proceedi.-Ws of the Board of Commissioners.
ARTICLE IX
MANNER OF VOTING
The voting on all questions coming before the Board of Commissioners shall be by
roll call, and yeas and nays shall shall be entered upon the minutes of such
meeting. The Chair and all numbers of the Board of at every
meeting of said Board of Commissioners shall be entitled to a vote. In the
event that any Commissioners shall htiaoe a personal interest of any kind in a
natter then before the Board of Conussiraioners, the Commissioners shall
disclose his/her interest and be disgtsdijted /horn voting upon the matter,
and the Secretary shall so record in the minutes that no vote was cast by
said Conunbsionern
ARTICLE 8
EXEC(ITION OF CONTRACTS
All contracts, notes, and other unittesa agreements or instruments to which
the Authority is a party or signatory or by which the Authority may be bound
shall be executed by the? Chair and Eseeutive Director. If the Executive
Director is absent or otherwise unable to execute a document, the Secretary.
Treasurer may execute the document_
ARTICLE XI
AMENDMENTS
The bylaws of the Board of Commissioners shall be amended by Resolution only
with the approval of at least a mq jority of the Commissioners in office at any
time.
These bylaws were adopted as the bylaws of the Authority by the Board of
Commissioners on , 1997.
evuwa.Nru: V27107 Pape 6
RESOLUTION
RESOLUTION OF THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO, MINNESOTA
AMENDING AUTHORITY BYLAWS.
WHEREAS, the Bylaws of the Housing and Redevelopment Authority (Authority) are in
need of revision due to changes in need for gender neutrality;
WHEREAS, the Bylaws of the Housing and Redevelopment Authority (Authority) are in
need of a revision due to desire to have the regular and annual meeting to commence at 7:00 p.m
instead of 7:30 p.m.;
WHEREAS, the Bylaws of the Housing and Redevelopment Authority (Authority) are in
need of the addition of ARTICLE 11, Commissioners;
WHEREAS, the Bylaws of the Housing and Redevelopment Autherhy (Authority) are in
need of several revisions due to desire to update or clarify certain provisions of the Bylaws
adopted the 6th day of April, 1971;
WHEREAS, the proposed changes to the Bylaws have been reviewed by the Authority
Attorney, Cormnissionm, and Staff and found satisfactory;
THEREFORE BE IT RESOLVED that the attached revised Bylaws of the Housing and
Redevelopment Authority in and for the City of Monticello. Minnesota, be adopted effective
immediately.
PASSED THIS DAY OF 1997.
MOTION BY:
SECONDED BY:
ROLL CALL:
OWe Koropchak,
Executive Director
Bradley D. Barger. Chair
HRA AGENDA
JULY 2, 1997
6. Consideration to adopt the Downtown and Riverfront Revitalization Plan for submittal to
the Planning Cormrssion.
A. Reference and backaround:
Enclosed is a summary of the progress and action taken by the HRA on June 4 relating to
the process for approval of the revitalization plan which was mailed to the Char of the
Planning Commission and MCP. Copies were distributed to Schroeder and O'Neill.
Connecting with Michael Schroder via voice mail, it appears the second draft of the
revitalization plan will be available on Tuesday, July 1, 1997. The second draft should
incooperate the comments made by the various individuals which were submitted to
Michael on May 29,1997. Other expected additions to the plan are the financial section
and the design guidelines. Needless -to -say, the Board of Directors of the MCP have not
reviewed or approved the revitalization plan. However, the Planting Commission can still
proceed on July I, 1997, to call for a public hearing date of August S, 1997, for the
consideration to adopt the revitalization plan as an amendment to the comprehensive plan.
The following are some ahernative suggestions to consider.
B. Alternative A io -
I . A motion to adopt the Revitalization Plan subject to review and approval by the
MCP Board of Directors. (With the anticipated delivery date of July I, this does
not allow the HRA members time for review of the document.)
2 A motion to set a special HRA meeting for the adoption of the plan sometime after
and assuming approval by the MCP Board of Directors on July 9, 1997.
3. A motion to table any action.
C. Recommendation -
If the HRA set a special rrreeting date to continue development of an HRA budget. then
alternative no. 2 appears most appropriate.
D. S0VQI19D=
Copy of the summary letter of June S, 1997.
C
June 5, 1997
TO: Monticello Planning Commission
Monticello Community Partners (MCP)
FROM: 011ie Koropchak, Executive Director tP'
Housing and Redevelopment Authority (HRA)
RE: Monticello Downtown and Riverfrom Revitalization Plan
The draft copy of the Revitalization Plan was reviewed for comments by MCP Board members
Lois Maus and Merrill Busch, MCP Committee Chairs Darrin Lahr, Pam Cambell, and Lynn
Dahl, MCP Project Manager Rite Ulrich, and Al Larson. The reviewed plan with comments was
forwarded to Michael Schroeder, Hoisington Koegler Group, Inc. on May 29, 1997.
A summary of the steps that need to be followed to achieve the goal of integrating the Plan and
the planting efforts into the city's comprehensive plan was outlined for the HRA commissioners
by Assistant Administrator Jeff O'Neill. The following is a summary of the HRA meeting of June
4, 1997.
I . Based on O'Neill's recommendation that the MCP Board of Directors approve the plan
prior to the HRA approval, the HRA commissioners hoped all MCP Board of Directors
had the opportunity to review the plan prior to approval of the plan by the MCP Board of
Directors in June.
The HRA commissioners approved a motion to consider adoption of the Revitalization
Plan for submittal to the Planning Commission for consideration as an amendment to the
comprehensive plan at the regular HRA meeting of July 2, 1997.
The HRA motion also recommended the Planning Commission at the regular meeting of
July 1, 1997, call for a public hearing to be held and to consider the amendments to the
comprehensive plan at the regular meeting of the Planning Commission in August.
cc: Michael Schroeder, Hoisington Koegler Group, Inc.
CJeff O'Nei4 Assistant Administrator
HRA AGENDA
JULY 2, 1997
At the HRA meeting of June 4, members were informed that the Building Department had
requested bids for demolition or removal of the garage and shed on the property owned by
the HRA. Attempts had been made to contact Mile O'Connor, the next door neighbor
artd owner of personal property stored of the garage and shed, thereafter a note was
attached to the premise giving notification to remove the personal property prior to
demolition or removal. The Chief Building Official was prepared to obtain an unlawful
detainer at the county if so necessary.
The HRA did approve authorization to seek bids for removal or detnofition of the garage
and shed located at 220 Front Street and payment thereof subject to legal advise relating
to the HRA's liability of notification for removal and the removal of personal property. At
first Attorney Bubul fell if the City had an unlawful detainer, the HRA was not liable.
However, he requested time for further research and recommended attempts be made to
work with O'Connor for removal of the garage or personal property.
Upon further research, Bubul said the law was unclear relating to abandon property :
however, continued by stating O'Connor CVUW raise a claim which owd become a major
law suit with the HRA liabic. His recommendation was for the HRA to remove the
personal property and store. Give notice to store for sixty days at O'Connor's expense. I
not claimed, destroy personal property.
In the meantime, the Building Department received two bids which are enclosed and
prepared a Small Project Work Agreement for execution which is also enclosed. It is the
Building Departments desire for the HRA to authorize demolition or removal of the
garage and sited located at 220 Front Street for an amount not -to -exceed $2,()IMI. The
Building Department continues to make contact with Mike O'Cotmor or Debbie Otten, a
relative. I will update the HRA at the meeting as to the success of those attempts.
A motion authorizing demolition or removal of the garage and shed located at 220
Front Street for an amount not -to -exceed S2,(1(Il) with the HRA removing and
storing the personal property for sixty days.
HRA AGENDA
JULY 2, 1997
2. A motion authorizing demolition or removal of the garage and shed located at 220
Front Street for an amount to-to-exceed $2,000 without HRA removal and storage
of the personal property.
3. A motion directing the Building Department to stop the process for demolition or
removal of the garage and shed located at 220 Front Street.
4. A motion to table any action.
5. A motion of other authorization.
C. Recommendation:
It is my understanding from the Building Official, the personal property within the shed
and garage may be of "tittle value" or junk". The Building Department began the
process for removal or demolition of the garage and shed without authorization from the
HRA because they felt m the best interest of the City, the property was a nuisance and a
hazard. An LP tank sits next to the shed and is a liability. ,
D. ha.°MW&DaiL
Copy of the bids and agreement.
L
2
9DROPOML
FYLE'S EXCAVATING & HONEY WAGON
9997 HARDING AVE. N.E.
MOtNTICELLO, MN. 55M (612) 296-2511
r *-4%kk L but" i i tow ttiorb uses
City of Monticello 295-2711 16-4-97
Street Address Job nems
P.O. Box 1147
1Niont�Ic 1 o, Mn 55362 Job iontwn
I ArddbCr
1 uo a perp:
Ha Nrobv eli epeaft 11 to and aadmetee br :
GARAGE d SHED DEMOLITION:
00w bdomoban:
INCLUDES: Removal of building, cement, replacing with top soil, seed/straw,
d labor.
PLEASE NOTE:
NO Paint, Tires or Appliances removed from site.
NE PROPOSE w brAfi d tndetlel aro labor a staled above Iw bre amou i of:
Eleven hundred and no/100............................ — .
(s 1,100.00 )
PernM to be rttede 41111.-1 :
Payment on completion of work
I ACCEPT ABOVE PRMEB •adMrtpwueneeded oorltraIM
air' rordaA me find. Pleaw tabun eIg M a bid accepted./' !�
`V
J SE f 8
r
U (Contractor)
DATE ACCEPTED ( ) DATE
��
�rimar b1 2bono c�eo�r i
/'
CONT COPY
Ib&R CONSTAUCTNK MIC.
PROPOSAL ry .
Citv of tivnticeJ to
STREET
CITY. STATE AND LP CODE
ARCHITECT [DATE CP PLANS
ww SDP K OM WWHICWM MID 00maln IM
vpww. a mow+
PHONE (DATE
JDa NAME
Demo
JOS LOCATION
JOB PLION!
Remove Ltarare and contents. remove metal shed. load and
haul to landfill. 'L loads black dirt leveled in vnrd.
We Proposetrlaw to TuTTddl N sww wa tw" • In wMCrdo" wn al i, epwilICwIOM, tar tea wm or.
aArlq ;: 1'rl'H.I111
agora to be ora Y AIbwA:
N.rl/ryr..r ra. wprwrr YoMr deapl/r arYbr/I 0-
�-�RwwgbwMarAwr rwnwllA llwrwPMWH A1'Mwabwbr�!
wb- bK4'w� rw�+rJ � mr1 V w mole rw IO-�� arra. M r Os-ra
- �Y1 d -P w Y1C waw � fir- Y MIr•r r�rrM� i --Y � �
and rI-I� Y l Ow r fA. Iw+�w wr �Ir 1�I�n rwlw0 Qr 4�
M Nh Nrw�/ Hi WOYII/1V r/"l�
,Caep[ence Of Prope"I - nb •�• pry
CpKftadone one eorrdaloM w ad dact" and we Am attaplad.
You are wAhorUed to do tho w" is apocebd. Payrnwa WW Do nlado
as oL dow avow.
own w ACCIPMwP
Nab: This pllpoul �nry a rMldwn
W uL � na rx�paa wNn
1
[0l
MONTICELLO HOUSING & REDEVELOPMENT AUTHORITY
SMALL PROJECT WORK AGREEMENT
This Agreement in made this _ day of 199_ by and between the Monticello
Housing & Redevelopment Authority (the "HRA') and (the
Contractor'.
In consideration of the nmtml covenants and promises camiaed in this Agreement, the HRA and the
Camractor agroe as follows:
1. Work to be Camleted. The Work to be completed by the Contractor is set forth in the
moons. drawings, and other pertinent addenda attached and made a part of this Agreement as Setkdule A. The
Contractor shaH perform in stria accordance with the provisions of mid Schedule A
2. C-- -- end Completion of Work Lmodated Doman. The Work shall commence on
and be sadslbctmity omWleted by . In the event the Work is not
commenced within (10) days of the date spe ified, the HRA may dismiss the Contractor withaa any mamtpensation
-vhusoever cad appaua a a molt= Cootroctor(s). If the Connecta is tumble to commence the wank by the specified
dam it must promptly notify the HRA In the event the Work is not completed by the specified date, the Contractor
and its sureties shall be atm fighridmed damtga afore percent (M) or filly daUm ($50.00). whichever is greater.
va day ft each mledur day ofdelay ehuhhduhg Smtrday. Smtday. and legal holidays unless the delay was aavoidabk
and beyond the control of the Coaractor as determined by the HRA This stmt shall be dedi=W Gam the Contract
Price at the time of psymem. Thts provision for liquidated cl m is in addition to any and all other rights and
remedies to which the HRA arty be entitled at law or in egWty in connection with this Agreement.
3. Pammt The Work as set toM in Schedule A irduding all labor. materials. and equipmeat needed
to eccsnplish the same, shall be completed by the Contracts for the sum of S (the "Corm Price')
to be paid to the Contractor upon completion of the Work to the sefisl9edon of the HRA The Canrcom agrees to
(luaish the HRA with all Mechanics Urn Waivers deemed nwassery by the HRA prim to payment of the Contract
Prior. The Commoct Price shall aceto a the sole co pemadoe payeblo to the Contracts for completion of the Work.
4. GMMLQM g. Tho Contrsaar hereby gttaramm to the HRA thm allof the Wank shall bo done
ions comprteat, worlmhontike master and that such Wale shall bond remain Qtr of de(bw in werl:nsWp and
mucrials for a period of as (1) year Qum the date whm the Work is com*tcd and moapmd by the HRA The
Contactor dull assign to the HRA (if assignable) or enforce for the benefit of the HRA (if not assigable) any
f provided by marniffi a ar seller of machinery, equipahcnt, and materials that cera irco1p0raUld into the
Work.
S. Permits and Lig msec. The Contracts shall azure all permits and fiarna necessary to the
completion of the Wyle and" comply with all federal. nate, and local laws, ordiaaces and regulations in the
perfonnaua of the Work.
6. Waive aftlability. The Contractor urdersmnds and a&= that the Work is mdermken at the sok
nsk of mho Commcmr. The Contracts does e.Vrcady forever release the HRA from any claims, demands, igjuries.
damage actions or muses of action whatsoever, arisial ow of or camectmd with the Work.
C ATCILVTCONI1ACT O iNWRLOW0.r1
7. 1pdeinpjgcapylp Any and a0 daima that arise or may mise against the Contractor, its agents,
servants or employees. as a consequence of any act or omission an the pmt of the Cmtraaar while engaged in the
Performance of the Wark shaft in no way be the obligation or responsibility of the HRA The Contractor shaft
iodamnify, hold hmmlm and defend the HRA its cowmen, of&ers, and employees, against any and all habitity,
lass, cost, damage expenses, dorms or actions, including attorneys fen which the HRA. its cam 'ssianers, of8cas.
or employee may henatefber mcur or be required to pay, an account of injury or death of any person(:) or damage to
wry pmpetty wising our of or by any rmron of any sot or omission of the Contractor, its agents seraams a employees
in the emmaaicq pafbor f glare to adequardy pet = its obligations under this Agmemen4 whatever the ansa
of such injury or damage.
8. Immm. The Cormucta agnas that in order to protea itselfarid the HRA ands the indemnity
provisions ser lbrdi above, it will at all times daring the term of this Agreement, kap in fan, at a rninimam polices
of insurance as indicated hada The Conuaaor shall not cow work until a Certificate of Insured« 00va1118
an of the iavaranoe ro I ' I by this paragraph is approved ad a written Nair to P. is issued by an surhataed
., . of the HRA
The followiag tnsmence polices mast be certified to the HRA for approval:
a. The Caaaactar shall purchase and maintain a commercial genial liability insurance policy
(CGL) to insure its operations. The CGL policy shall be in the amount of at least One Million and oo/100
Dollars ($ I.000,000) in combined bodily injrry end property coverage.
b. The Cawraaor shall purrLnse and mmotmn an automobile policy which provides coverages
fbr all owned, noncwnod and remad or hired num mobiles. The Automobile Policy shall be to the amort of
at least One Million and no/l00 Dollars (S 1.000,000) combined single limit coverage.
C. The Can, m, shaft purchase and maintain Water's Compensation insurance in
wowdanco with Chapter 176 of the MW200 Sm=.
The HRA shall be tamed as an 'additional inaated' party on both the Contractor's CGL and
automobile, insurance polices. The HRA:hall salve at least 30 days written notice ofcancellation. nan-
renewal, or arty material chmges of the insurance policies speci0ed above.
9. Ad2csmLmxLHm= Any notice permitted or requdrod to be given under this Agreement shall be
deemed to have been given by certified mail. Postage prepaid. addressed as Mews:
HRA ADDRESS Monticello Housing Redevelopment Authority
P.O. Box 1147, 230 Ent Broadway
Monticello. MN 33362.9243
CONTRACTOR ADDRESS
Either party may clump the address by giving written ormoc to the other party.
10. Agghobh1m. This Agreement shall be comued is acoardarrce with sad governed by the laves
Of the Stato of Minim rota.
11. Entire Agreement. This Agreement constitutes die entire agreement between the HRA and the
Conroeta with respect to mho marten addressed herein.
C:vAtt1Lmmmlrrs4Crg umrwa►;ACLO
C
12. tel. Thu Agent may be modified or emmded only with the writtm approval of the
HRA and the Comaaet r.
13. C2nMgigW In the event that any am or more of the provisions of this AV=nmt cr any
application thezaoE shag be found to be invalid. illegal sir oehaaim anenforceahk the vslift, legality and
enforceability of the rcmmmng pmvisom or any application thereof shag not in any way be affected or-ngmrcd
thereby.
14. Amg= Thu App mem shag be biodmg apron and in order to the Waseffi of the parties, their
legal reprmcwmive4 heirs. aooestm and a sips. No assignment or etOmtpted assigmneat of this Agro®em ar any
rights bacmodcr shag be effeedw mlesa the writtm crosmt of the other party is first obtaimd
IS. Authority. Eck of the ands 'ped parties warranp it has the PA amhotity to omcde this
Agreanmt, and each individual sipmg this Agrarmcat on beWof s capomon hereby wasrams that he at she has
full authority to sign an behalf of Oe corporation that he or she represents and to bind soh corperstim thereby.
16. Bfai No hilum by my pony to iasist upon the stria pafa m m of aY eovemom dory.
ag�e®au or oanftim of this Agm®eat or to exerdse my right of remedy canse I 1 19012 a breach dwcd Shall
amsub a waives afany suchbfaerb or am oda ooveamt, *MOM term or canditioa nw don it imply that Bach
covenama, agtamem, tam or cooducam may be waived again.
IN WITNESS WHEREOF, the parties have sec that hands this _ day of 199_
CONTRACTOR MONTICEWO HOUSING & REDEVELOPMENT
^U THORrIY
By
CNATC7 V K ONRACT.VPS W'af AC"
By
ZAI
HRA AGENDA
JULY 2, 1997
Enclosed is a copy of the June HRA bills. John Komarek has been bled for
reimbursement to the HRA for the legal costs associated with amending the Private
Redevelopment Contract. 1 believe there remains additional billing time.
A motion to authorize payment of the June HRA bills is recommended.
KENNEDY a GRAVEN
avrmed
200 South Sbuh Suvn Subm 470
M6oie7paas, NN 55402
(612) 337-9300
June ll, 1997
City of Monticello
011ie Koropchak
City Hell
P.O. Box 1147
Monticello, MN 55362-9245
MN19MM54: Prairie West Project (Komarek)
Invoice # 16310
(5�
Through May 31, 1997
For All Legal Services
As Follows:
Ir 05/01/97
SJB Review contract; phone call with 011ie K re plat
0.50
,->o005/06/97
issues
SJB Phone call with J O'Neill re platting issues 0.2n
05/08/97
SIB Draft contract amendment; letter to O Koropchak;
3.50
draft amended Assessment Agreement; memo to M
Ruff
05/09/97
'
SIB Phone call with M Ruff re runs needed
0.20
05/22/97
SJB Review TIF tuns; revise contract letter to O
1.00
Koropchak; phone call with M Ruff re runs
Total Services:
$
For All Disbursements As Follows:
05/22197 Fax
�
05/22/97 Federal Express -delivery charge
05/23/97 Photocopies
05/23/97 Postage
Total Disbursements:
Total Services And Disbursements:
Ideamurdw0wd"d1W q3 $a
alr�mu+ mraed wd
,r.emna�etnrmprt
Ole oft
gt a of
S
S
67.00 q3 $C
26.80
469.00
26.80
134.001�q et
t9
723.60
6.00
11.48
6.80
1.56
t�25.84
749.44
KENNEDY 8i GRAVEN
ted
200 South shah Sam SWm 470
i MhWaPok 141 55402
(612)337,9300
June 11, 1997
City of Monticello
011ie Koropchar
City Hall
P.O. Box 1147
Monticello, MN 55362.9245
MN190-00055: Downtown Revitalization Project
Invoice # 16311
Through May 31, 1997
For All Legal Services As Follows:
05/05/97 SJB Phone call with O Koropchak re acquisition and 0.25 33.50
relocation questions
Total Services: S 33.50
Total Services And Disbursements: S 33.50
I Ids"tod rpatdadiew
fhb Comm ddmor rnsd
tIMtlid at/tbpm
d
ebtett.a
K04MDY a GRAVEN
ahatead
200 saw, Sluh UNN% Sdo 470
roeeapW4rn+ SM2
(612) 337,9300
June 11, 1997
City of Monticello
011ie Koropchak
City Hall
P.O. Box 1 147
Monticello, MN 55362-9245
NRS
NN 190-00064: Economic Development- TIF Midwest Graphics
Invoice H 16314
Through May 31, 1997
For All Legal Services As Follows:
05/07/97 SIB Phone call with 0 Iroropchar re manufacturing TIF 0.20 26.80
05/08/97 SIB Phone call with J Gongoll re manufacturing issues 0.30 40.20
05/23/97 SJB Phone call with 0 Koropchak re contract 0.20 26.80
amendment
Total Services: S 93.80
Attorney Summary
Stephen J. Bubul 0.70@ 134.001hr 93.80
Total Services And Disbursements: $ 93.80
160M udr over of Mr
Ct ft stunt d" a drnard
'AWdqWNdqW1WP2N
d1
tl =
1
KENNEDY a GRAVEN
200 South mm Spee, SWu 470
room, WN SS402
(612) 337-9300
June 11, 1997 1 .1
City of Monticello
011ie Koropchak
City Hall
P.O. Box 1147
Monticello, MN 55362-9245
MN190-00062: Fay-Mar Expansion
Invoice # 16313
Through May 31,1997
For All Legal Services As Follows:
05/02/97 DJG Phone call with Fay -Mar attorney; revisions re
1.60
same
05/08/97 DJG Revise Fay -Mar expansion contract and cover letter
1.70
re same
05/13/97 DJG Review Marquette subordination agreement
1.10
Total Services:
$
Attorney Summary
Daniel J Greensweig 4.40 @ 105.00/hr
For All Disbursements As Follows:
05/20/97 Photocopies
05/20/97 Postage
05/30/97 Fax
Total Disbursements:
Total Services And Disbursements:
lent mad rPrAftdtar
0thSmorddmod�nu ne
r nd tlld ro 1a.rr
ixana0w d
168.00
178.50
115.50
462.00
462.00
31.40
7.03
1.00
$ 39.43
S 501.43
KENNEDY a GRAVEN
aam.d
200 South SL M Sam Suite 470
Mkioupoft SS402
(612) 7-
1612)337A300
June 11, 1997 El��
City of Monticello
011ie Koropchak
City Hall
P.O. Box 1147
Monticello, MN 55362-9245
MN 190-00041: Redevelopment - General
Invoice # 16309
'Through May 31, 1991
For All Legal Services As Follows:
05/01/97 SJB Phone call with O. Koropchak re proposed
0.75
100.50
manufacturing TIF: fax statutes: gather sample
by-laws
05/05/97 SJB Phone call with O Koropchak re Manf.
0.50
67.00
TIF/Midwest Graphics; phone call with J Gongol re
same
05/07/97 S>B Prepare for and attend NRA meeting
4.50
603.00
Total Services:
S
770.50
For All Distimsements As Follows:
05/01/97 Fax
0.00
05/22/97 Fax
0.00
Total Disbursements:
S
0.00
Total Services And Disbursements:
S
770.50
lee - WWWOuryrorIw
Ori ami dein or danuM
1� eneErrro
a. f
OWWW 'C
0
KENNEDY a GRAVEN
owtu.a
200 Saudi SIM Sate, Sub 470
t+aivinpa8ti, MI 55402
(612) 337-9300
`
\ `
R
June 11, 1997
l/
Monticello EDA
011ie Koropchak
PO Box 1147
Monticello, MN 55362.9245
MN325-00001: Tappers Loan
Invoice N 10218
Through May 31, 1997
For All Disbursements As Follows:
05/01/97 Postage
10.75
Total Disbursements:
S
10.75
Total Services And Disbursements:
$
10.75
Ji , 01 W1a,to.d6,6+a.
YIIrQJ/Mp�
talent "ciu:UY "
Monticello HRA
PO Box 1147
Monticello MN 553112-9245
June 13, 1997
MC10D-01 GENERAL
R�
C,,,-'4 CEJ
fflIP7 MTR Seminar for HRA1CRy CourmA
�\ t 5120197 MTR Redo Prairie vrest numbers
V �Total Due This Month:
Previous Balance:
M7- Payment - thank you
Total Balance Due:
Hours Amount
1.75 183.75
0.50 52.50
2.25 $236.25
526.25
(526.25)
5236.25
I
PLEASE KEEP WHITE COPY FOR YOUR FILE AND REMIT PINK COPY WITH PAYMENT TO:
EHLERS AND ASSOCIATES, INC.
200 Nonwu C«u«
00 South Seventh Suety
MIMUPOS MN 55102.4100
1512) 3395201
/r HRA AGENDA
JULY 2, 1997
9. Consideration of=iecty les-
a) Redevelopment District No. 1-22
Homestead Center Project - Enclosed is a letter from Kris Graham with an update of the
preliminary feasibility study from their marketing film Enclosed is a copy of the typical
agreement a sponsor enters into with Homestead, this for your review only at this point.
A meeting has been scheduled for July 15 between Brad Johnson, Lotus Realty Services, a
developer; Fred Patch; Kris Graham; and Koropchak to discuss the overall concept for
development of the elderly housing center, upscale multi -family rental wits, and hotel.
The intent of the meeting is to gage the interest level of the developer, Brad Johnson, for
participation.
Please consider one or two dates for a tour of the Homestead Crnter Project in gross
Lake.
Mall Redevelopment - Activity continues for interest in redevelopment of the Mau;
however, nothing to report at this time.
Rerrellgas relocation - The local manager has expressed interest in relocation and two 1-2
sites have been identified as possibilities.
Downtown Rehab Incentives - The EDA is in the process of developing guidelines for
three types of rehab incentives for property owners interested in rehabilitation of
properties located within the four -block area of Walnut and Broadway. Incentives will be
/ tied to design guidelines.
b) Allied Companies/Midwest Graphics
Enclosed is a copy of the informational item submitted to Council members relating to the
new financial tool called "Abatement Authority" which is authorized by the Council. 1
thought it might be an appropriate use to offer Steve Krenz as an alternative to TIF which
is not applicable due to the "greets acres" requirement. One of the Council members
would appreciate some feedback from the HRA relating to the use of this tool for
Midwest Graphics. Big Lake has contacted Mr. Krenz for marketing Big Lake's new
industrial park.
C
(aY7 cid a
HOUSING CE NTER
June 25, 1997
011ie Koropchak, Economic Development
City of Monticello
250 East Broadway
Monticello, Mmnesota 55362-9245
Dear Otte,
I regret that 1 can't attend the EDA/HRA meeting on July 2, 1 will be on vacation. I
know that the members will have questions regarding our findings and 1 would really like
mother chance to discuss them.
I have received the information regarding the preliminary feasibility study for the
HOMESTEAD of Monticello project from our marketing fimt, Assured Performance
(AP), in Golden Valley. Darrell Westling, President of Assured Performance (AP),
preliminary looked at the number of senior s in Clear Lake; Albertville, Monticello, Elk
River, Annendale that are 70 and over and had an income of $25000. or more. After a
brief review of the demographics, he was very optimistic about the success of the
Monticello project and suggested that it looked like we could safely build 20+ units. He
raid that a larger building may be possible, but before he could recommend that he would
hive to do a more in-depth look at the area using different data from other sources.
I don't want to give you the impression that the seniors need to be wealthy to live in a
HOMESTEAD project. On the contrary, then arc marry genion living in the
HOMESTEADS that have much lower incomes but enough to pay a monthly fee. They
had enough equity in their homes or capital in the bank to purchase their Homestead unit.
It is possible to extend our evaluation to include more areas, and look at younger seniors
with incomes of $20,000. or more. The land costs will need to be determined to really
Wcutate the unit costa. If the land costs are reasonable, the cost of the units may be
lower and the study area can be broadened to those with less income. Any or all of these
would allow the number of units and umt costs to change.
The preliminary information that we have received indicates that a HOMESTEAD
Cooperative of Monticello can be very successfitl, the location and demographics are
positive. As you can see, there are many variables that will need to be determined before
we can really decide the final numbers.
5500 Cent Drive, Station 210
Inver Grove Heights, MN 55077.1733
�ij--%-W,r 612.451.4930 0 FAX: 614.451.5568
This is about as far as 1 can go in my evaluation without spending more foods on
consultants to advise me in setting up the project. Homestead Housmg Center has no
money for this. To move forward, I wM need to do a sponsorship — :.,...., for
$25,000. with your community, so I can in tum do a contras with the Cooperative
Development Foundation and gain access to our &70,000. for pre -development costa. I
need a commitment of S25,000. from your community but I only need S6000. of that to
start a more in-depth trot at the project. 7be remainder wM be requested when we start
the preliminary marketing of the project. The $6000. will be placed in an account in
your name and a monthly statement will be sent out so you can see how the fimds are
spent and split between MHC and Monticello. I have enclosed a sponsorship agreement
for your review and use.
I look forward to hearing tom you soon.
Sinoerely,
Kris braham Project Manager
C
HOMESTEAD COOPERATIVE SPONSORSHIP AGREEMENT
THIS AGREEMENT, dated , 19_ by and among the sponsors
signing below (each, a "Sponsor") and HOMESTEAD HOUSING CENTER ("HHC"), a
Mumesota nonprofit corporation.
RECITALS:
The parties hereto desire to investigate the feasibility of, and if feasible, to construct and
operate a Homestead Cooperative (the "Cooperative") in the following location:
City:
State-
HHC believes that substantial local mvohvnem in the Cooperative is essential for its
success.
The Sponsors recognize that HHC has extensive experience in planning and developing
Homestead Cooperatives in several states.
The parties acknowledge that certain costa will be incurred in connection with
investigation and developing the Cooperative, and HHC and the Sponsors are interested in
financing a portion of the initial costa.
THEREFORE, in consideration of the mutual covenants set forth herein, the parties
hereto agree as follows:
SERVICES AND OBLIGATIONS OF HOMESTEAD HOUSING CENTER.
I.I. Best Efforts to Develop Coo retire. HHC will use it best efforts to
investigate the feasibility of developing the Cooperative, and if HHC determines the
Cooperative to be feasible, to develop the Cooperative, including all customary
responsibilities associated therewith, from the date hereof through and including the
completion of construction and the election of rnanagement of the Cooperative. The
developmem activities of HHC will include a feasibility study, community meetings, mews
releases and brochures. If HEC determine in its sole discretion that there is sufficient
interest in the Cooperative. HHC will proceed to obtain an option to purchase or a
purchase agreement for a parcel of land, prepare construction drawings, hire and train a
marketing person, and continue all marketing efforts. HHC will arrange for financing
necessary to carry out development of the Cooperative. HHC will provide the services of
its architect and attorney. HHC will select a construction contractor of its choice,
wherever possible utilirdrtg local resources. HHC will provide services to the shareholders
in organizing the Cooperative, including the hiring and training of the necessary personnel.
HHC will arrange construction inspections and assist the Cooperative to completion.
HHC will provide the ne essary legal documents and see to the organisation of the Board
of Directors of the Cooperative, and will assist the Board for approximately one year
following completion of construction in such matters as HHC and the Board deem
advisable.
1.2. HHC Seed Money Financing. HHC will provide funds of approximately
Seventy Thousand Dollars (570,000.00) ("HHC Sad Money") to fiord investigation and
development costs prior to construction of the Cooperative, provided that the Sponsors
are timely fiunishing Sponsors' Sad Money (as defined below) pursuant to Section 2.1
hereof.
1.3. Indemnity of Sponsors. HHC agrees at all times to keep, save and hold
harmless the Sponsors from and against any and all actions, proceedings, claims, demands,
losses, outlays, damages, judgment, or expenses, including reasonable legal fees, which the
Sponsors may in any way incur in defending or prosecuting, settling, or discontinuing any
proceedings or action or claims arising in any way out of the acts or omissions of HHC.
1.4. Completion of Responsibilities. HHC will proceed with all prudent and
possible speed toward successful conclusion of its responsibilities.
OBLIGATIONS OF SPONSORS.
2.1. Soonsors' Seed Money. Each of the Sponsors signing below commits and
agrees to advance as necessary, in proportion to each other Sponsor's commitment, the
portion designated opposite its signature below of Twenty -Five Thousand Dollars
(525,000) in local seed capital ("Sponsors' Seed Money") to be used by HHC to match
the HHC Seed Money for development of the Cooperative. The Sponsors' Seed Money is
to be used at the discretion of HHC solely for expenses incurred by HHC in developing
the Cooperative. Advances of Sponsors' Seed Money shell be in the form of a loan to
HHC from the Sponsors; provided that such loans shall be repayable solely from
construction tion or permanent loan financing for the Cooperative, and if the Cooperative for
any reason is not developed, such advances of Sponsors' Seed Money shell be deemed to
be a non -repayable grant from the Sponsors to HHC. Sponsors' Seed Money shall be
advanced to HHC as follows:
2.1.1. Feasobili : Six Thousand Dollars (56,000) upon execution of
this Agreement, to be spent for preliminary feasibility analysis, site options, subsoil
investigation and preliminary, marketing and design.
2.1.2. Dsvelomment and Marketing: Nineteen Thousand Dollars
(519,000) upon HHC's decision to proceed with design and marketing of the
Cooperative. Funds will be expended to pay for development and marketing costs,
including, but not limited to, marketing staff and overhead, and architectural piens
and specifications.
All advances of Sponsors' Seed Money (other than Sponsors' Seed Money at any time
determined to be a non -repayable grant) shall bear an interest from the date advanced until
repaid at the rate of % per annum. Should any Sponsor (a "Non-Advanc4
Sponsor") refuse to advance against its commitment within ten (10) business days of
receipt of notice from HHC, thea HHC shall have, the right to seek a replacement
commitment from a replacement Sponsor and all prior advances from the Non -Advancing
Sponsor shall be immediately deemed to be grants to HHC, with HHC having no
repayment obligation with respect thereto, whether or not the Cooperative is successf idly
developed.
2.2. AMIEmml of Advisors. Each Sponsor approves the appointment of the
following local advisors, with whom HHC may consult with respect to development of the
Cooperative:
2.3. Indemnitv of HHC. Each Sponsor agrees at all times to keep, save and
hold harmless and to defend and indemnify HHC, its directors, officers, and employees,
from and against all actions, proceedings, claims, demands, losses, outlays, damages,
judgments, or expanses, including legal fees, which HHC may in any way incur in
defending or prosecuting, settling, or discontinuing any proceedings or actions or claim
arising in any way out of the acts or omissions of such Sponsor.
MISCELLANEOUS.
3.1. Abandonment of Coogntive DeveloQment. If HHC determines in its sole
discretion that the development of the Cooperative is not feasible for tory reason, then
HHC may determine to abandon the project and terminate and cancel this Agreement.
Upon abandonmem, HHC shall have no liability for any repayment of Sponsors' Seed
Money advanced from any Sponsor, except as provided herein. The parties hereto &gree
that repayment of such Sponsors' Seed Money by HHC will not be required, and that such
advances will be forgiven. If, however, at the time development of cooperative is
terminated, HHC shall have received advances from Sponsors that are unspent and not
committed to pay an expense already incurred, then HHC shall refund such unspent
advances to Sponsors (excluding, however, Non -Advancing Sponsors) on a pro rata basis
based upon the relative investment of each Sponsor. in the event of project abanndonm m,
HHC will attempt to sell any properties or assets related to development of the
Cooperative them under its control and will distribute the net proceeds of such ales
between itself and each of the Sponsors on a pro rata basis determined by the relative
i investment of HHC Sad Money and Sponsors' Seed Money in the Cooperative project.
3.2. Notis&5. In the event that a claim is made by any person against one of the
parties in this Agreement related to the Cooperative or the services described in this
Agreement, such party shall notify all other parties within ten (10) days of knowledge of
such claim. All communications hereunder shall be in writing and, except as otherwise
provided, shall be delivered at, or mailed by registered mail, or sera by facsimile machine
to, the following addresses:
If to HHC: Homestead Housing Center
5500 Cemex Drive, Station 210
Inver Grove Heights, MN 55077-1733
FAX: (612) 451-5568
If to Sponsors: To the addresses set forth opposite their names below.
3.3. QflJx Sneer. The Sponsors will eraoge for the availability of office space
to atccesd* market the cooperative concept and the project development. Such space
"be made available at no charge to HHC or the Cooperative.
3.4. Naha to Existing Homestead C000eratives. Sponsor agree to visit at
least one of the existing Homestead Cooperatives as early as possible, so that they may be
r able to promote the Cooperative within the City and the surrounding community.
3.5. Marketing Recognition. The names of all Sponsors will be appropriately
recognized on all marketing materials prepared by HHC.
3.6. Count=art SiggMures. This Agreement may be executed in any number
of counterparts.
HOMESTEAD HOUSING CENTER
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ATP: "MAI I*"?
INFORMATIONAL ITEM
G \C;)
"Abatement Authority" Statute
by 011ie Koropchak
Enclosed is a copy of the summary of the "Abatemem Authority' Statute. 'Ibis public
financeleconomic development tool is a result of the 1997 Legislative Session and the summary
was drafted and presented at a recent Kennedy & Graven seminar. This information is being
provided to Council members to create an awareness of the new tool and as an option available to
taxing jurisdictions. Secondly, the information provides the Council with the opportunity to ask
questions. And lastly, because the City is the governing body of the "abatement authority' and
not the HRA or EDA. I'm interested in the Council's receptiveness for Utilization of the new
public fittance/economic development tool. At the suggestion of the HRA Attorney and myself, it
is recommended local policies be developed prior to any use.
Because the Monticello Commerce Center and Monticello Market Place parcels lie within the
property tax classification of "Green Acres" per the Nfirmesota Statutes certain requirements
must be met in order to qualify for establishment of a TIF District. 'Ibis provision was passed into
law in 1995. Under the "Green Acres" requirement a proposed facility must be 85%
mamrfacturing or production space of tangible personal property, mehtding processing resulting in
the change in condition of the property. Warehousing, packaging, telemarketing, and office space
does not quaI4 as part of the 85% manufacturing space. This requirement places an
incumbrance on a majority of the properties zoned for industrial development in Monticello. The
owner of the Monticello Commerce Center parcels requested removal of the "Green Acres" states
in 1995, therefore, the incumbrance will be removed from these parcehm November 2000.
T'he HRA was presented with a proposal for the construction of a 44,000 sq ft tip -up panel
industrial building. The proposed structure would consist of 37,400 sq ft of production and
alatehtatse space and 6,600 sq ft of office space. In order to utilize TEF, the proposed structure
must consist of 37,400 sq R of manufacturing or production space (not warehousing) which does
not street the needs of the company. Due to the increased monitoring of TIF by the State
Department of Revenue, the HRA and city is advised not to proceed with TEF assistance unless
the company is willing to substantiate findings for the "green acres" requirement.
With the use of the abatement, the City is = subject to an HACA Penalty or the local
contribution match as applied through the use of TEF. However, the abatement does lie within the
tax levy of the Cay.
Is the Council receptive to offering the "Abatement Authority" to this company as an altemative
to TIF! Please call the at 271-3208 for more information or questions rather than discuss at a
public meeting. Enclosed is a copy of the employment opportunities for this proposed
development.
Based on a finished building value assumption of 51,400,000. the maximum annual abatement by
the Cay of Monticello is estimated to be approximately 510.300. The County could also be
requested to consider the "Abatement Authority."
13. ARA Tax Levy. Previously, HRA's were authorized to levy a tax for their
general corporate purposes, with a limit of .0131% of the jurisdiction's taxable
market value, plus a levy for relocation services in an amount not to exceed
.0013% of market value. These levies have now been consolidated into a single
levy limit of .0144% of market value, and the proceeds may be used for any HRA
corporate purpose. Article 2. Section 43._
Abatement Authority. Article 2, Sections 45 to 48 creates new statute Sections
469.1812 to 469.1815. Cities, towns, schools and counties are each given the
authority to rebate the taxes imposed by that entity (but not taxes of any other
jurisdiction).
1. General Requirements: The governing body must find that the abatement
will: (1) produce benefits to the political subdivision at least equal to the
costs; Ed (2) the abatement is in the public interest because it will
increase or preserve tax base; provide employment opportunities in the
political subdivision; provide or help acquire public facilities; help
redevelop or renew blighted areas; or help provide access to services for
residents of the political subdivision.
2. Procedure, Terms: The governing body must adopt an abatement
resolution after a noticed public hearing, stating the amount of and reasons
for the abatement. The abatement may last for up to 10 years. The total
abatements in any year may not exceed 5% of the current levy or
S100,000, whichever is greater. The political subdivision may not abate
the tax attributable to the value of the land or, in the metropolitan and
taconite areas, to the areawide fiscal disparities tax.
After expiration of the term, an additional abatement may not be granted
for existing improvements on that parcel for 8 years. The terms may be
modified every second year, unless the original resolution provides for no
modifications. Note: school districts are subject to different limitations:
the abatement must be granted annually, are renewed for up to nine
additional years; the maximum abatement for any property is: (the net tax
capacity) x (the school district's total tax tate less one-half the general
education tax rate for that year).
Mechanics. Bonding: Property owners receiving an abatement pay their
taxes as usual; the political subdivision pays the abatement amount as a
rebate to the property owner. Political subdivisions may also issue revenue
or general obligation bonds secured by the abatements. However, a voter
referendum is required for general obligation bonds. The maximum
principal amount of the bonds is the stun of the anticipated abatements.
Proceeds may be used for (1) public improvements that benefit the
propery; (2) acquire and convey land or other property; (3) reimburse the
property owner for the cost of improvements made to the property; or (4)
23
costs of issuance of the bonds. One political subdivision may issue bonds
secured by abatements granted by other participating jurisdictions.
4. Effective Date: Effective for taxes payable in 1998.
D. Tau Increment Financing. Most observers expected major revisions to tax
increment law, following major studies and reports issued in 1996 by the
legislative auditor and state auditor. In fact, the changes are modest. The
following references are to Article 10 of the Act (House File No. 2163), unless
otherwise noted:
I. Redevelopment Finding+ in Redevelopment Districts. A municipality
must make an interior inspection of a building in order to find that it is
substandard. unless it cannot gain access and the evidence otherwise
supports the finding. (Section 1) Effective for districts filed for
certification after June 30. 1997.
Evidence of the redevelopment findings (including reasons why an interior
inspection was not made, if applicable) must be documented in writing.
(Section S)
2. Llmitatiom on Use In RedevelopmenvRenovatioo and Renewal
Districts Section 469.176. subd. 4j. requires that 90 percent of the
revenues be used to finance the cost of correcting conditions that allow
creation of a redevelopment or renovation and renewal district, including
a list of named costs. The list is clarified as a non-exclusive list of
examples, and key items are added: rehabilitation of structures. and costs
related to removal or remediation of hazardous substances. The change is
effective for all districts to which this restriction applies (those filed for
certification after October 4, 1999), and prior expenditures in accordance
with the revised language are validated (Section I).
3. Definition of Tas Inerement. The term 'tax increment and variants of
that tern are defined to include: (1) taxes paid on the captured net tax
capacity (i.e., actual to increment); (2) proceeds from the sale or lease of
property purchased with tax increment: (3) repayrrtmts of loans or other
advances made with tax increment; and (4) interest or other investment
earnings on or from tax increment. Clauses (2) autd (3) apply to districts
filed for certification after Juane 30. 1992, but only for proceeds from sales.
leases or loans made after June 30. 1997. Clause (4) relating to interest
applies to all districts filed for certification after July 31, 1979, but only
for investment earnings received after July 1, 1991. (Section 2)
4. Solls Condition Districts Ettended. The duration of soils condition
districts is extended. from 12 years after plan approval to 20 years after
receipt of the first increment. (However, under current law the tens soil
district is a misnomer: it may only be crested to remediate hazardous
24
,
HE: Monticello Project
I am happy that you are receiving cooperation from the city on our
project. I am anxious to discuss the preliminary plans and costs. I
have provided the information you have reqested below regarding the
effect of our business expansion.
1. Present full time positions in Monticello: 20
2. New full time positions created by the project: 22
+ 3. Average wage per new position: $7.50/hour
4. *Company paid fringe benefits:
Retirement. Plan
Health Insurance
Short loan Disability
Life Insurance
S[:cl
1 6-�
It June 5, 1997
MDPTi-IL'E W
250 East Broadway
P. O. Box 1147
Monticello, MN
55362-9245
Phone: (612) 295-2711
Metro: (612) 333-5739
Fax: (612) 2954404
Ms. Linda Smith
Little Mountain Flowers
P.O. Box 695
Monticello, MN 55362
Dear Linda:
This is a letter to inform you as to the use of the 111 West Broadway parcel owned by the
Monticello Housing and Redevelopment Authority. At the June 4, 1997 HRA meeting, the
commissioners approved granting permission to the Downtown Merchants Association for a one -
day use of the West Broadway parcel subject to the Merchants Association carrying liability
insurance and returning the property to its original state. The one -day use is for Saturday, August
9, 1997, the date of the fhrmer's market.
Linda. the farmer's market is a wonderful idea. Should you have any questions, please do not
hesitate to call me at 271-3208.
Sincerely,
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY
OFF MOONTICELLO, MINNESOTA
011ie Koropchak
Executive Director
cc: File
n
OjjW of Public Works, 90 Goff Courw Rd, Montketlo, MN 88J84 • Phos( (812) 2M170 • Pas t812 4B8,r170, at /