HRA Minutes 11-01-1989
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MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, November 1, 1989 - 7:00 PM
City Hall
MEMBERS PRESENT: Chairperson Al Larson, Ben Smith, and Everette. Ellison
(tardy).
MEMBERS ABSENT: Tom St. Hilaire and Lowell Schrupp.
STAFF PRESENT: Ollie Koropchak
GUEST: Pat Pelstring, Business Development Services, Inc.
Barb Schwientek, Hospital Executive Director
1. CALL TO ORDER.
Chairperson Al Larson called the HRA meeting to order at 7:15 PM.
2. APPROVAL OF THE OCTOBER 4, 1989 HRA MINUTES.
Ben Smith made a motion to approve the October 4, 1989 HRA minutes,
seconded by Everette Ellison and passed 3-0.
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3. CONSIDERATION TO REVIEW DAVID FICEK'S HOUSING REDEVELOPMENT
PLAN, ESTIMATED TIF PROJECT NUMBERS, AND SURVEY RESULTS.
Mr. Pelstring reported that Mr. Ficek was encouraged by the
results of the survey tabulation as it confirmed the HRA's
feeling of a need for a higher quality of townhome ($70,000
to $90,000) and that 32.5% were interested in townhomes.
At this point, Chairperson Al Larson updated Barb Schweintek
on the planned townhome concept. Mr. Pelstring continued
to summary the developer plan and costs and stating that
the projected increment under owner occupied units would
not be sufficient to cover the developer's cost. Mr. Pelstring sug-
gested that a portion of the units be investor/rental units.
Pelstring and Koropchak will meet with Mr. Ficek to determine
possibility of rental and which units will be rental. Mr. Pelstring
advised the HRA that he is upfront with Mr. Ficek suggesting the
HRA request full disclosure of acquisition and developer's
cost and not to give TIF numbers to Mr. Ficek, this leaving
the HRA is the driver's seat. Additionally, that with the rental
units Mr. Ficek becomes responsible to find investors.
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Ben Smith made a motion recommending a portion of the units
be rental, however, not in the Phase I area of Palm and
4th Street. Also, that the developer be responsible for
finding an investor(s) for rental units and that the developer
make full disclosure of acquisition and other developer's costs to the HRA.
The motion was seconded by Everette Ellison and passed 3-0.
HRA Minutes - 11/1/89
Page 2
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4. CONSIDERATION OF DISCUSSION FOR ELDERLY CONVALESCENT
HOUSING NEEDS.
Chairperson Al Larson expressed the HRA's next goal which is
to provide needed housing for the person not able to
provide all services for himself/herself yet not ready for the
Nursing Home.
Barbara Schwientek gave her insight and knowledge of the
elderly and their living needs. First, the elder age population
is growing. Age 65-75 - 90% live in their own home or apartment,
age 75-85 develop more chronic illnesses, and age 85 and over -
16-2l% live in nursing homes.
Approximately seven years ago a survey was completed to determine
the cost effeauiveness of converting the old nUltl;l,ing home into
apartments. Survey results were that the popJ~at~on did not
support the need for market rate apartments and ~Tould need
to be subsidized.
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State Legislature is very resistent to building of new Nursing Homes,
endorsing other elderly home care services, however, this
may present a shortage of nursing home beds in the future.
Even with the 200 beds added each year, projections are for
a shortage by Year 2010. Sherburne and Wright County are
known for good Nursing Homes, always a waiting list. It
was a poor decision of the Hospital Board to not have taken
the risk and built a 120 beds rather than the 91 bed capacity.
Monticello has nineteen community base services in the pilot program
which is serviced by one telephone call. Fifty to seventy-five
people used the program in the first year and is staffed by a
Public Nurse and Social Worker. The Adult Day Care Service
has grown 100% in one year. Ms. Schwientek recommended
for the HRA to keep in mind the core of group services and
suggested the site could be most anywhere in Monticello.
The Hospital Board's decision was not to use the tax payers
money to compete with market value units and the District
does not want to be land owners. However, the Hospital
District is willing to work cooperatively with the HRA,
utilizing the Hospital services of Home Health Care and
the HRA's use of TIF and potential finding of a developer.
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Children tend to relocate their parents close to them. All
units should be handicap accessible: appliance and bath rooms
as well as good lighting. The Heartland Express Bus is a
new service in Monticello starting December 1st, the availability
of diversified doctors and the adult day care program are
all options for developers to consider. Ms. Schwientek
expressed to the HRA that forty units are generally a
break even point and suggested expertise design models
in Elk River and Zimmerman.
Chairperson Larson thanked Barb for her insight in the elderly
care field and suggested that all persons present be alert
for a potential developer and referrals be passed on to
HRA Minutes - 11/1/89
Page 3
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4. CONTINUED.
Mr. Pat Pelstring or Mr. Pelstring may have a suggestion for
the HRA.
5. CONSIDERATION OF AN UPDATE ON THE GILLE PROPERTY.
No information has been received from the PCA on legal
responsibilities for tank removal and soil testing.
The City continues to enforce the City Ordinance of
violation of a non-conforming use.
6. OTHER BUSINESS.
Chairperson Larson asked Koropchak to sent Barb Schwientek a
thank you note from the HRA.
7 . ADJOURNMENT.
Everette Ellison made a motion to adjourn the HRA meeting,
seconded by Ben Smith, the HRA meeting adjourned at 8:35 PM.
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~_\<(lO~L~
Ollie Koropchak
HRA Executive Secretary
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