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HRA Minutes 03-07-1990 . MINUTES MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY Wednesday, March 7, 1990 - 7:00 PM City Hall MEMBERS PRESENT: Chairperson Al Larson, Lowell Schrupp, and Ben Smith. MEMBERS ABSENT: Everette Ellison and Tom St. Hilaire. STAFF PRESENT: Ollie Koropchak, HRA Executive Director. 1. CALL TO ORDER. Chairperson Al Larson called the HRA meeting to order at 7:25 PM. 2. APPROVAL OF THE FEBRUARY 7, 1990 HRA MINUTES. Lowell Schrupp made a motion to approve the February 7, 1990 HRA minutes, seconded by Ben Smith. With no further comments the minutes were approved as written. . 3. PUBLIC HEARING FOR THE DISPOSITION OF LANDS RELATING TO TAX INCREMENT FINANCE PLAN FOR TAX INCREMENT DISTRICT NO. 1-10 (REMMELE ENGINEERING). Mr. Larry Griffith, Legal Counsel for Remmele Engineering, informed the HRA that a purchase agreement has been executed between the Oakwood Industrial Partnershp and Remmele Engineering, however, the option agreement between Jim Boyle and Remmele has not been executed. The Remmele Engineering project is only doable upon the purchase of the Boyle property and to begin the project because five feet of the building in Phase I extends across the would be vacated East 33 ft of Fallon Avenue. Mr. Red Heitkamp was also present. The public hearings for the adoption of TIF Plan and District 1-10, for vacating of Fallon Avenue and utility and drainage easements, and approval of the plat request are scheduled for the March 12 City Council meeting. Soil testing have been completed and confirmed OK and the project indicates no environment impacts. Phase I include necessary parking for 50 employees (40 original employee will be from Big Lake plant), Phase II will be an additional 17,500 sq ft of warehouse only with about 60 employees of two shifts. Plans are for complete landscaping and Remmele Engineering sign on building facing 1-94. I The HRA public hearing for the disposition of land relating to Tax Increment Finance Plan for Tax Increment District No. 1-10 was opened by Chairperson Al Larson. With proper public hearing HRA Agenda - 3/7/90 . 3. PUBLIC HEARING FOR THE DISPOSITION OF LAND RELATING TO THE TAX INCREMENT FINANCE PLAN FOR TAX INCREMENT DISTRICT NO. 1-10. A. REFERENCE AND BACKGROUND. The public hearing may be opened for public oral or written comment on the disposition of lands for the Remmele Engineering, Inc. project. Said public hearing notice having appeared in the local newspaper for two weeks describing the said lands. With the assumptions of no public comments, the public hearing may be closed. Upon the advice of Mr. Pelstring, it has been recommended the HRA adopt the resolution for the modification of the Redevelopment Project Plan No.1, and for the approval and adoption of the Tax Increment Finance Plan relating to Tax Increment Finance District No. 1-10. This recommendation meets technical statutory requirements and replaces the adopted support of or inducement of the TIF Plan by the HRA in February. . Remmele Engineering, Inc. is a supplier of high quality, techologically advanced services in the areas of: 1) contract fabricating, machining, and assembly; 2) designing and building custom equipment for automating or mechanizing a variety of manufacturing processes; and 3) fabricating and building machinery designed by customers where it fits their manufacturing capabilities. Customers for all Remmele Engineering services consist primarily of manufacturing industries. Remmele Engineering currently has 400 employees located in four plants. Two plants are located in Big Lake and two plants are located in St. Paul. Based upon the long term needs of the company, the site must be able to accommodate future expansion of a facility up to 60,000 sq ft. The initial plant will be 23,333 sq ft with two planned expansions. Intital employment will be 50 skilled labor jobs. Site location is Lot 6, Block 1, Oakwood Industrial Park, 6.58 acres; vacated Fallon Avenue, .82 acres; and Boyle property, 2.1 acres for a total of 9.4 acres. Additionally, Remmele Engineering will purchase an approximate .92 acres and deed to the City for realignment of Fallon Avenue. Plans calI for the City to acquire a small triangle piece of Boyle property south of Chelsea Road to complete the realignment of Fallon Avenue (or Remmele may purchase the property and sell it to the City). . On March 6, the Planning Commission will hold a public hearing for the preliminary plat subdivision request to replat two existing industrial platted lots into platted lots and outlots. HRA Agenda - 3/7/90 . 3. CONTINUED. Assumption is the request will be granted by the Planning Commission contingent upon land acquisition by the developer. On March 12, the City Council will open the public hearing for the TIF Plan and close the public hearing on March 26, thereafter, adopting the TIF Plan relating to TIF District No. 1-10. The land must be acquired prior to final plat subdivision request being granted to allow for the project to proceed. The building permit being issued after adoption of the TIF Plan by the Council. The TIF Plan relating to TIF Plan No. 1-10 is available in complete form for review at the City Hall. A portion of the plan is included as your Supporting Data. The total Phase I TIF budget is $260,000 (land acquisition, on-site utilties/ grading/landscaping, $185,000 of which $65,000 is from HRA excess funds). Remaining costs are soft costs, capitalized interest, etc. Representative(s) from Remmele Engineering will be present at the March 7 HRA meeting. . B. ALTERNATIVE ACTION. 1. To adopt the resolution relating to the modification, by the HRA in and for the City of Monticello, of the Redevelopment Plan relating to Redevelopment Project No.1, modificiation of the TIF Plans relating to TIF Districts No. 1-1 through 1-9 and the approval and adoption of the TIF Plan relating to TIF District No. 1-10, all located within Redevelopment Project No.1. 2. Deny adoption of the above named resolution. 3. Table adoption of the above named resolution. C. RECOMMENDATION. Recommendation will be given at the HRA meeting by Business Development Services, Inc. Recommendation may be to adopt the TIF Plan contingent upon the land acquisition or may be to table the adoption of the TIF Plan until land is acquired and final plat request is granted. D. SUPPORTING DATA. . 1. Public Hearing Notice 2. Copy of a portion of the TIF Plan 3. Copy of the resolution. liRA Minutes - 3/7 /90 Page 2 . 3. CONTINUED. notice in the local newspaper and hearing no public oral or written comments, said public hearing was c1uf;ed. The Remmele project includes 6.5 acres of Lot 6, Block 1, Oakwood In~ustrial Park. 0.41 acres of vacated Fallon Avenue, 2.07 acres of Boyle's Property for a total project area of approximately 8.93 acres. Remmele will purchase an additional 1. 32 and de.ed to the city .92 acres for realigned Fallon I Avenue nor~h of Chelsea Road and the city will purchase 0.40 acres (tridngle piece south of Chelsea Road) from Remmele. The TIF Plan relating to Redevelopment TIF District No. 1-10 was included (a portion of) in your agenda. The TlF budget. Phase I, is $260,000 (land acquisition. $120.000 and on-site. utilities/grading/landscaping. $65,000). The $65,000 from the HRA excess funds. Remaining amount is for soft costs, capitalized interest, etc. . Ben Smith made a motion to approve a resolution authorizing the acquisition and disposition of lands relating to TIF District No. 1-10 and to approve a resolution relating to the modification, by the Housing and Redevelopment Authority in and for the City of Monticello, of the Redevelopemnt 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 1-9 and the approval and adoption fo the Tax Incrment Financing Plan relating to Tax Increment Financing District No. 1-10, all located within Redevelopment Project No. I, effective upon filing of the plat request. Lowell Schrupp seconded the motion and without further discussion the motion carried unanimously. The motion was passed because the project was consistent with HRA policy considerations: 1) The project is consistent the City's Comphensive Plan, 2) The project demonstates long-term economic and/or housing benefits to the community, 3) The project creates employment for Monticello, 4) The project shall provide additional public funding for public improvements whihc would not otherwise be available, and 5) The project is deemed to promote additional desired "spin-off" development. The project will also increase the tax-base and Remmel is a quality'company which will provide skilled and semi-skilled jobs. 4. CONSIDERATION TO APPROVE THE CERTIFICATE OF COMPLETION AND RELEASE OF FORFEITURE FOR THE BROADWAY SQUARE LIMITED PARTNERSHIP. I. -- Lowell Schrupp made a motion to approve the Certificate of Completion and Release of Forefeiture for the Broadway Square Limited Partnership. because the project has been completed within the guidelines of the Development Agreement and the occupancy permit has been issued by the City Building Inspector. The motion was seconded by Ben Smith and without further discussion carried unanimously. . HRA Minutes - 3/7/90 Page 3 5. CONSIDERATION TO DISCUSS AND ESTABLISH A DATE FOR A JOINT MEETING BETWEEN THE HRA AND THE CITY COUNCIL REGARDING TIF POLICIES. Chairperson Al Larson didn't see a need for a joint meeting but reiterated the feelings of the HRA that they hoped in the future the Council consider tabling an agenda item which may be unclear or inconsistent with HRA policy to allow further discussion or clarification of the project outside the realms of the public and that Koropchak is to provide Council members with a copy of the HRA policies. 6. CONSIDERATION OF PROJECT UPDATES: DAVID FICEK - since the February I, 1990 meeting with property owners, Koropchak has not been able to make contact with Mr. Ficek nor has he returned her telephone calls. . TAPPER INC. - It seems unlikely at this time that the Small Small Development Loan for Tapper's will be approved by the Board so an alternative of SBA funding is being put in place. At this time, the EDA has received no CMEF Application however are expecting one as the GMEF is part of the financial package. MARTIE'S FARM SERVICE - Koropchak asked the HRA members for their interpretation of proper screening. The HRA felt that was the decision of the Planning Commission and/or the Building Inspector and City Planner. Their concern is for the industrial park to develop with a consistent asethetic value. K-MART - no report as Jeff O'Neill was not present. 7. CONSIDERATION TO REVIEW AND ADOPT 1990 HRA GOALS. Chairperson Larson recommended tabling this agenda item until more HRA members are present. Item was tabled. 8. CONSIDERATION TO REVIEW YEAR END TIF DISTRICTS REPORT. I Administrator Rick Wolfstel1er presented written copies of the HRA Funds and TIF Debt Service Funds to the commissioners. The summary showed that from the eight TIF District approximately $250,621.87 was collected from tax increment with one short fall of $485.57 of which will be reimbursed in 1990. TIF bonds proceeds was $215,320.00 for the elderly housing project and $23,000.00 city loan fbr NSP. The HRA Fund cash surplus as of 12/31/89 is $167,190.04. Al Larson made a motion to payoff the $23,713.00 HRA debt at the Big Lake Bank at the Administrators discretion. Ben Smith seconded the motion and without further discussion carried unanimously. This was for the purchase of lands for the first elderly project. . HRA Minutes - 3/7/90 Page 4 8. CONTINUED. Rick further summarized the TIF DB Fund with a cash surplus as of 1/1/89 of $138,930 plus transfer in from HRA $116,201 the ending cash surplus as of 12/31/89 is $204,673 with P & I payments of $169,273 due in 1990. Additionally, $65,000 will be taken from the HRA funds for Remme1e Engineering, Inc. The commissioners thanked the Administrator for the report. Chairperson A1 asked Koropchak to mail the reports to the HRA members who are not present at this meeting. 9. CONSIDERATION OF INFORMATION: The provided IDC 1990 Goals and Budget, Chamber of Commerce 1990 Goals and Budget, and the summary from the Star City's Annual Report were only intended as informational information. Unless there were questions, the Chairperson may room on to the next agenda item. 10. OTHER BUSINESS. None. . 11. ADJOURNMENT. Lowell Schrupp made a motion to adjourn the HRA meeting, seconded by Ben Smith, the HRA meeting adjourned at 9:00 PM. ~ '<d\O~~ Ollie Koropchak HRA Executive Secretary I