HRA Minutes 09-05-1990
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MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, September 5, 1990 - 7:00 PM
City Hall
MEMBERS PRESENT: Chairperson Al Larson, Ben Smith, Lowell
Schrupp, Everette Ellison, and Tom St. Hilaire.
STAFF PRESENT: Ollie Koropchak
STAFF ABSENT: Rick Wolfsteller and Jeff O'Neill
1. CALL TO ORDER.
Chairperson Al Larson called the HRA meeting to order
at 7:00 PM.
2. APPROVAL OF THE AUGUST 1, 1990 HRA MINUTES.
Lowell Schrupp made a motion to approve the August 1, 1990
HRA minutes, seconded by Tom St. Hilaire, the minutes were
approved as written.
3.
CONSIDERATION TO HEAR FOLLOWUP ON THE GILLE PROPERTY.
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Koropchak presented to the HRA members with guidelines necessary
for the removal of underground storage tanks and estimated
costs for both tank removal and soil boring tests. The
three (at least) tanks on the Gille property would need
to be removed for redevelopment and for FHA financing.
It was Mr. Brad Larson suggestion to have soil borings
completed first to determine possible soil contami-
nation as this may determine the decision whether to
or not to proceed with this project.
Chairperson Al Larson reiterated the HRA position on this
project, the HRA will serve as the facilitator between a
willing developer and a willing seller in assistance of
providing the property will a clean bill of health. The
properties discussed include the Gille parcels and the
Katzmarek.
It was recommended that Chairperson Al Larson, Brad Larson,
and Koropchak meet to discuss the HRA's position of assistance
to the potential interested developer. The intent is
to have the developer contact the property owners on land
price negotiations and to return to the HRA with level
of assistance needed.
4. CONSIDERATION OF AN UPDATE ON TIF PROJECTS:
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a) Eric Bondhus - the company continues to look at other
site locations, as Mound and Maple Grove. Still
interested in Monticello, the company feels they have
ample time to research other possibilities as their
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HRA Minutes
9/5/90
Page 2
4. CONTINUED.
lease expires in 1991.
b) Undisclosed company - Koropchak informed the HRA members
of an inquiry from a consultant firm representing a
client interested in siting an industrial location.
The inquiry requested the completion of an eight
page questionaire plus maps, zoning ordinances, etc.
Individuals with expertise in the area of the
question helped complete the questionaire and to this
date no response as been heard from the consultant.
The consultant request no telephone contact by
communities.
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c) Leaseable space - Koropchak briefly ran the preliminary
concern and idea of the IDC's regarding the lack of
leaseable industrial space in Monticello. The initial
reaction of the HRA was it didn't seem very practical.
-').. -oC: C?~ idea was to have building and site plans approved
by the Building Inspector, a TIF Plan prepared and
distributed, find a willing developer, and obtain
an option for a designated industrial site. The
HRA would be committing funds of $3,800 for the
preparation of a TIF Plan with Pay-As-You-Go
Assistance.
d) Muller Theatre Expansion - Koropchak informed the HRA
of the theatre expansion plan which would add two additional
screens and approximately 500 seats. The project lacks
necessary funding and inquiry was made on the availability
of TIF. Koropchak responded that due to Legislative action
the Minn~sota Statutory now are more restrictive on the
use of TIF, however, hasn't taken away the tool. To
consider the use of TIF for the project would mean to
include the Stokes parcels as this is the substandard
parcel, however, the original condition of the building
wouldn't meet the new TIF definition of "substandard".
Also, Muller's funding is for acquisition of real estate,
construction (improvements and expansion) of real estate,
and for machinery and equipment, not, for demolition to
eliminate blight or substandard buildings. The developer
plans to seek GMEF funding.
5.
OTHER BUSINESS.
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The HRA inquired if Pat Pelstring and Rick Wolfsteller had
met to define the BDS, Inc. billing process and to clarify
the hourly charges. Koropchak responded not to the best
of her knowledge.
HRA Minutes
9/5/90
Page 3
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5. CONTINUED.
Koropchak presented the Community Venture Network brochure
as prepare by and for BDS, Inc. As a member of the CVN,
Monticello, a community with business investment funds or
loan funds, could benefit from the professional managed
services provided by BDS, Inc. The purpose is to "match"
prospects with member communities. Identified prospects
are new, start-up technology companies seeking smaller
grant funds to complete product feasibility and marketing
analysis; "development stage" companies with existing
product lines, but seeking expansion capital; and business
acquisitions, new business owners seeking additional
equity or expansion capital to complete the purchase of
successful, existing companies. The community members
would meet at least every two months and potential
prospects would give a 30 minutes presentation. Cost
to the comunity is an annual membership fee of $5,500.
Additionally, a "placement fee" of 10% of the first $50,000
of community investment, and 2% of all funds over $50,000,
but only if the community makes a decision to fund.
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The HRA wasn't interested in the concept as BDS, Inc.
does consider Monticello as a major client, therebye, with
the understanding BDS, Inc. will supply Monticello with
prospect leads. Also, the HRA didn't see the benefit
of the concept compared to the cost.
6.
ADJOURNMENT.
The HRA meeting adjourned at 8:10PM.
~ '<O\O~~~
Ollie Koropchak
HRA Executive Secretary
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