HRA Minutes 01-03-1990
.
MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, January 3, 1990 - 7:00PM
City Hall
MEMBERS PRESENT: Chairperson Al Larson, Ben Smith, Lowell
Schrupp, and Tom St. Hilaire.
MEMBER ABSENT: Everette Ellison.
STAFF PRESENT: Jeff O'Neill and Ollie Koropchak.
GUEST: Bob Heck and Deb Graham, BDS, Inc.
Bill and Barb Tapper, and Lance Hartkopf, Tapper Inc.
1. CALL TO ORDER.
The HRA meeting was called to order at 7:02 PM by Chairperson
Al Larson.
2. APPROVAL OF THE DECEMBER 6, 1989 HRA MINUTES.
.
Ben Smith made a motion to approve the December 6, 1989
HRA minutes, seconded by Lowell Schrupp. Without further
discussion the minutes were approved 4-0 as written.
3. PUBLIC HEARING FOR THE DISPOSITION OF LAND FOR TIF
DISTRICT NO. 1-9.
The modified Redevelopment Project and Finance Plan No. 1
and the Tax Increment Finance Plan No. 1-9 having been
available for review at the City Hall by the public and
after proper publication notice, Chairperson Al Larson
opened the public hearing. With no oral or written
comments on the disposition of land for TIF District
No. 1-9, the public hearing was closed.
4.
CONSIDERATION TO APPROVE THE RESOLUTION RELATING TO THE
MODIFICATION OF THE REDEVELOPMENT PLAN RELATING TO
REDEVELOPMENT PROJECT NO.1, THE MODIFICATION OF THE TAX
INCREMENT FINANCING PLANS RELATING TO TAX INCREMENT
FINANCING DISTRICTS NOS. 1-1 THROUGH 1-8 AND THE
APPROVAL AND ADOPTION OF THE TAX INCREMENT FINANCING
PLAN RELATING TO TAX INCREMENT FINANCING DISTRICT NO. 1-9.
.
The Tax Increment Finance Plan relating to Tax Increment
Finance District No. 1-9 having been prepared with a
budget for land acquisition of $17,500 ($2,500 annually
over 7 years) and administration cost of $3,600. The
budget being consistent with the HRA authorization
for BDS, Inc. to prepare the TIF Finance Plan. This
authorization based on the developer's willingness to
construct a 9,720 sq ft metal building (2,268 sq ft
commerical display/office and 7,452 sq ft agricultural
product warehouse.) Agricultural products of Cargill
HRA Minutes 1/3/90
Page 2
.
4. CONTINUED.
supplies, seed corn, salt, grains, wood shavings, straw
bales with production of bird seeds and grain cleaning during
harvest season. Commercial products of pet food and supplies,
power equipment, grass seeds, etc. Additionally, authorization
based on the developer's willingness to apply proper
screening for outdoor and indoor storage.
Deb Graham expressed the TIF Plans were distributed to
the school district, hospital district, and county
commissioners on December 22, 1989 with a planned
City Council public hearing and plan adoption on
January 22, 1990.
.
Tom St. Hilaire made a motion to adopt the resolution relating
to the modification of the redevelopment plan relating to
Redevelopment Project No.1, the modification of the Tax
Increment Financing Districts Nos. 1-1 through 1-8 and the
approval and adoption of the Tax Increment Financing
Plan relating to Tax Increment Financing District No. 1-9.
Ben Smith seconded the motion, with no further discussion
the motion passed 4-0. The HRA adopted the plan based
on the larger agricultural product warehouse to be
constructed in ratio to the commerical display/office,
increase of property value, and three additional jobs.
This applying consistency to the HRA policies and
assisting a small local developer.
5.
CONSIDERATION TO AUTHORIZE BDS, INC. TO DRAFT A TIF PLAN
FOR ESTABLISHMENT OF ECONOMIC DISTRICT NO. 1-10 FOR
TAPPER, INC.
Mr. Bill Tapper introduced himself and his wife, Barbara,
ownersof Tapper, Inc. and Lance Hartkopf, finance director
for Tapper, Inc. Mr. Tapper gave a brief summary of
his professional background, being a graduate engineer
and sales management, originally in the micro wave
business which lead to the purchase of Genereux five to
six years ago. In those past six years, sales have
grown from $300,000 to $1,400,000. Presently, the
company manufactures a full line of unfinished custom
storages primily for the single family home market
(kitchen and bath.) Westlund Distributing, also a
business of Tappers, distributes hardware to the
cabinet manufacturing industry. With their planned
expansion, space and employment would allow them to
ship finished products and enter the decorating parts
market and provide a full line of services (financial).
.
.
HRA Minutes 1/3/90
Page 3
5. CONTINUED.
Expansion plans include an initial 20,000 square foot
concrete building with an additional 5,000 square feet
as mezzanine, with capabilities to expand to 100,000
square feet. Currently, Tapper's Inc. employs 25 people
plus an additional 10 seasonally. Initial expansion plans
include an additional 25 jobs with high school part time @
$4.00-$5.00 and skilled labor @ $11.00. Tapper's present
facility limits their sales because of unability to offer a complete
line of service. Tapper's contracts to kitchen dealers
on new higher quality construction and employs four
sales personnel.
.
Site selection is Lot 4, Block 2, Oakwood Industrial
Park inwhich they plan to utilize the swale as a natural
parkway and building itself will be similar in design
to NAWCO. The Tapper's selected Monticello for a various
reasons, however, they indicated the nice people,
the availability of the industrial park, and the financial
proposal assistance. Mr. Tapper felt it was not reality
to expect an industrial park of all concrete structures and
t:or, thereaft.er;'J the land cost would increase. He did
not find the industrial park unattractive. Construction
plans are to begin this spring with occupancy in the
fall.
Bob Heck and Deb Graham informed the HRA of the TIF
schedule with planned adoption of TIF Plan at the
City Council on February 26th. An approximate $77,500 TIF
assistance is estimated for the write down of land cost
plus the use of the Small Business Development Loan (IDB)
and the Greater Monticello Enterprise Fund. Total estimated
project costs is $850,000. Lowell Schrupp made a motion
authorizing BDS, Inc. to draft a TIF Plan for economic
district no. 1-10. (Tapper, Inc.), the motion was seconded
by Ben Smith and passed 4-0 without further discussion.
The proj ect is consisten L with HRA policy considerations
one, two, three, and eight.
Mr. Bob Heck asked the HRA to adopt a resolution of support
for the Minnesota Small Business Development Loan, thereby,
allowing Tapper expenses to start occurring. Tom St. Hilaire
made a motion to adopt a resolution of support for the
Minnesota Small Business Development Loan for Tapper, Inc.
The motion was seconded by Lowell Schrupp and passed 4-0
without further discussion.
.
Chairperson Larson thanked Mr. and Mrs. Tapper, and Hi. f{artkopf for
their presentation and welcomed them to the community.
.
HRA Minutes 1/3/90
Page 4
6. CONSIDERATION TO HEAR TIF PROPOSAL PRESENTED TO
BRIDGE WATER TELEPHONE COMPANY.
Koropchak informed the HRA of staff's proposal as presented
to Mr. Rierson based on the HRA's encouragement to swap
lands with the City to discourage the illegal use of a non-
conforming use at their present location on West County
Road 39. Bridge Water's intent was to expand at their
present location which can be completed with the
amendment of the city ordinance. City staff did not
see it as a benefit to remove the present Bridge Water
property from the tax rolls and to encourage market efforts of the city
lots in Oakwood Second Addition they presented Bridgewater
with the following proposal. Pay-as-you-go Option of
$2,750 over 8 years for land cost and site improvements
(land fill) on Lot 6, Block I, Oakwood Industrial Park,
Second Addition, with Bridge Water retaining ownership
of their existing property with contingent upon marketing
and selling the property to a PZM legal conforming use.
Proposed facility is 12,000 square feet of warehouse/storage,
metal construction with contrasting Dundas Road front and
windows, increase of employment within Bridge Water office
and service area.
.
HRA members inquired why the use of TIF, Koropchak responded
to the HRA original interest in this project and why city
staff presented Mr. Rierson with a proposal inclusive of
TIF. Mr. Rierson did not approach the city for the use of
TIF or the idea to relocate their storage facility. Chairperson
Al Larson made a motion to deny the use of Tax Increment
Finance to Bridge Water Telephone Company, seconded by Tom
St. Hilaire and passed 4-0 without further discussion. The
denial was determined by the HRA because it only met one of the HRA
policy considerations (No.1) and felt assistance was not
necessary. <
7.
CONSIDERATION TO ELECT 1990 HRA OFFICERS AND TO ESTABLISH
1990 HRA GOALS.
In accordance with HRA By-laws, the Chairperson remains in
office until such time as his term expires. Tom St. Hilaire
made a motion of HRA officers: Ben Smith, Vice Chairperson;
Rick Wolfsteller, Treasurer; and Koropchak, Executive Secretary.
Lowell Schrupp seconded the motion and the motion passed 4-0
without further discussion.
.
Tom St. Hilaire suggested the HRA goals consist of tangible
results such as three additional industries with employemnt of
50 each. Staff is to write suggested goals, mail the 1989 and 1990
goals to members, and call a special meeting. Chairperson
Larson suggested the City hold a strategic planning seminar
similiar to the School Districts of which had an excellent
facilitator. Jeff O'Neill informed the HRA members that was
the real purpose of the joint meeting held in June.
.
HRA Minutes 1/3/90
Page 5
8. CONSIDERATION OF AN UPDATE ON REMMELE ENGINEERING AND
THE LINCOLN COMPANIES.
Koropchak informed the HRA members of the planned meeting
with Remmele officers and legal counsel, city staff, and
rDC and HRA Chairpersons on Friday, January 12, 1990.
Remmele Engineering plans to construct an approximate
20,000 sq ft facility with intital employment of 50
with potential to expand an additional 40,000 sq ft
and an additional 100 employment in 3-5 years. Hopes
are to receive a go-ahead for a Monticello location
from Remmele, thereby, coordinating the TIF plan schedule
with Tapper, Inc. Al Larson made a motion authorizing
BDS, Inc. to draft a Tax Increment Finance Plan for
TIF District No.1-II and schedule the HRA public hearing
for February 7, 1990, contingent upon Remmele's decision
to locate in Monticello. The motion was seconded by
Ben Smith and without further discussion passed 4-0.
Tom St. Hilaire suggested for the city to do whatever
it takes to get Remmele to Monticello.
.
Jeff O'Neill updated the HRA members on The Lincoln
Companies project. The project is still a go-ahead,
however, being very complex because of necessary public
improvements. Secondary pond may be necesary for K-Mart
run off, Seventh Street elevation needs to be raised
for K-Mart parking lot therefore no road access off
Seventh Street to Hornig's property which may necessiate
the acquisition of the bank property. The Lincoln
Companies has not received financing, the city has seen
no lease agreement, and the cost keep increasing.
TIF funds are presently at approximately $437,000.
Buffalo's Walmart project use of TIF is $600,000.
9.
OTHER BUSINESS.
Koropchak asked HRA members who was interested and planning
to attend the seminar, Using Tax Increment Finance, on
February 7. The seminar is all day and includes lunch
and breaks at a cost of $65 per person paid by the City.
Ben Smith and Koropchak indicated yes, yes from Al Larson
if schedule permits, check with Everette Ellison, and
no from Tom St. Hilaire, Lowell Schrupp, and Jeff O'Neill.
10. ADJOURNMENT.
The HRA meeting adjourned at 8:45 PM.
.
~ \<0'\.t\-\\SL9:~.//
Ollie Koropchak
HRA Executive Secretary