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HRA Minutes 01-02-1991 . MINUTES MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY Wednesday, January 2, 1991 - 7:00 PM City Hall MEMBERS PRESENT: Chairperson Al Larson, Ben Smith, Lowell Schrupp, Everette Ellison, and Tom St. Hilaire. STAFF PRESENT: Jeff O'Neill and Ollie Koropchak. 1. CALL TO ORDER. Chairperson Larson called the HRA meeting to order at 7:00 PM. 2. APPROVAL OF THE NOVEMBER 7 AND NOVEMBER 14, 1990 HRA MINUTES. Lowell Schrupp made a motion to approve the November 7, 1990 HRA minutes, seconded by Ben Smith, without further discussion the minutes were approved as written. Ben Smith made a motion to approve the November 14, 1990 HRA minutes, seconded by Tom St. Hilaire, and without further discussion the minutes were approved as written. . 3. CONSIDERATION TO ACCEPT 1991 HRA MEMBERSHIP FOR CITY COUNCIL APPOINTMENT. With HRA member Ben Smith's willingness to remain on the HRA for an additional term, Tom St. Hilaire made a motion recommending, the name of Ben Smith for HRA membership, to the Mayor for appointment and City Council approval. The motion was seconded by Ben Smith and without further discussion passed unanimously. HRA Members and Terms: Tom St. Hilaire Everette Ellison Al Larson Lowell Schrupp Ben Smith December 1991 December 1992 December 1993 December 1994 December 1995 4. CONSIDERATION OF FOLLOW-UP ON THE ELDERLY CONGREGATE HOUSING CONCEPT. . Koropchak informed the HRA members of the recommendations received from Patty McCallan of Health Research, via Barb Schwientek, regarding some criteria for Phase I of a market study and assessment guidelines of the study. (See enclosure.) Koropchak further reported that the scheduled tour of the Helgeson Development Housing Complex in Sartel1 was cancelled because of HRA members conflicts. The tour was scheduled for Wednesday, December 5, 1990 at 10:00 AM. . HRA Minutes 1/2/91 Page 2 4. CONTINUED. The HRA concluded that the present time was not right for congregate housing in Monticello due to the excellent ancillary services provided in Monticello along with the availability of elderly housing both subsidized and fair market. Additionally, the project isn't financially feasible without assistance and at present the HRA is aware of an interested long term investor. The HRA suggested that the tour of the Sartell housing complex be rescheduled in the spring. 5. CONSIDERATION OF FOLLOW-UP ON THE GILLE PROPERTY PROPOSAL. . Koropchak reiterated the November 30, 1990 telephone conversation with Brad Larson. Mr. Larson said the West Prairie Partnership was not interested in the project unless the City, Gille, or the HRA provided the partnership with a closure report certifying tank removal and no soil contamination. Mr. Larson further indicated that he felt Mr. Gille was in no financial position to remove the tanks. Inother words the partnership is not interested in the property unless clear of all tank removal and possible soil contanmination expenses. The HRA acknowledged the site improvement on the property, yet, about six cars and car parts and junk remain on the property. With the knowledge that the City could become owners of the Gille property due to the seven year delinquency on property taxes. the HRA requested a current status report on the taxes and information on the Super Fund. 6. CONSIDERATION OF ACTIVE PROSPECTS: a) 1.2 million sq ft distribution center - This undisclosed company plans to employ 500+ personnel and will create an excess of 500 round trip daily truck traffic, plus employee and company owned truck fleet traffic. The company officials have selected three Minnesota communities for potential site selection. Monticello is among the three along with Anoka and Owattona. The HRA reminded staff that from their perspective they support quality rather than quantity, however. encouraged the staff to be aggressive in the recruitment. Additionally, they encouraged staff to ask questions when the opportunity arises and encouraged the Mayor and/or City staff to visit another company similiar site. b) Aroplax - This 40 year old family owned company is strongly looking at Monticello to relocate their plastic injection molding company. Currently, preliminary building plans are being completed and on January 3rd the owners will visit our industrial site options and visit with staff. The HRA analyzed the project against the TIF policy considerations and determined the company project met considerations 1, 2, 3, 7. and 8. Based on previous information of the company the HRA gave preliminary concept approval for the use of TIF to Arop1ax. . . HRA Minutes 1/2/91 Page 3 6. CONTINUED. c) Woodcraft Industries, Inc. - the company's president contacted my office regarding their desire to expand their manufacturing facility. The company plans to construct a 100,000 square foot facility and employ 150 people at $6.50 per hour. The company is in the production of hardwood dimension cabinet componets. Plans are for the company officicals to view industrial sites available and to meet with staff and Mr. Pat Pelstring on January 8th. The company is interested in a financial package and are also looking at Becker, Wilmer, and Sauk Rapids. The HRA supported the project recruitment. d) Eric Bondhus - although the company's largest customer is located in the metro area, Eric remains interested in Monticello. TIF numbers have been run for the project under the assumption to purchase a city lot. Mr. Bondhus will contact Rick Wolfsteller for 1) purchase options on the Old Fire Hall and 2) negotiable land costs on the industrial sites. . e) Circuit Technologies, Inc. - Based upon Pat Pelstring's recommendation Ken Maus, Shelley Johnson and Koropchak met to review the company's business plan and resumes. The meeting intent was to secure additional community input for this start-up company. Based upon the submitted information the group recommended a commitment letter from the proposed sales person (key person to the success of the company), at least five letters from companies interested in their market niche, and a two year lease commitment. The group encouraged to proceed with the recruitment process and if the project becomes unviable, stop the process. Upon the group's recommendation the company representatives, Pat Pelstring, and Koropchak visited lending officers at Wright County State Bank and First National of Monticello for preliminary concept review of the project and willingness to participate in the project. These meetings held December 28, and at this point have not heard from the lending institutions. 7. COPY OF THE REQUEST FOR PROPOSAL TIF/SPEC BUILDING PRE-PLANS FOR INFORMATIONAL PURPOSES. No action necessary on this agenda item, copy of the proposal in for informational purposes only. The proposal was approved by the IDC in December and was mailed to approximately ten . . HRA Minutes 1/2/91 Page 4 7. CONTINUED. contractors on December 19th with IDC selection scheduled for January 18th. 9. ADJOURNMENT. Tom St. Hilaire made a motion to adjourn, seconded by Everette Ellison. the HRA meeting adjourned at 8:25 PM. ~ \<cnaC\.SJ~ Ollie Koropchak HRA Executive Secretary . .