HRA Minutes 06-26-1992
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MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY SPECIAL MEETING
Friday, June 26, 1992 - 8:30 AM
City Hall
MEMBERS PRESENT:
Chairperson Al Larson, Ben Smith, Lowell
Schrupp, and Everette Ellison.
MEMBER ABSENT:
Tom St. Hilaire.
STAFF PRESENT:
Ollie Koropchak.
STAFF ABSENT:
Rick Wolfsteller and Jeff O'Neill.
1. CALL TO ORDER.
Chairperson Al Larson called the special HRA meeting to order
at 8:37 AM.
2.
CONSIDERATION TO AUTHORIZE BUSINESS DEVELOPMENT SERVICES, INC.
TO PREPARE TIF PLAN FOR TIF DISTRICT NO. 1-14, SUBURBAN
MACHINE AND MANUFACTURING, INC.
Koropchak outlined the background of this development, stating
originally this company contacted Koropchak's office last fall
and on June 8, Mr. Kendall, Mr. Hoglund, and Koropchak visited
the Rogers facility upon their request. The company owners,
Brad and Mary Barger, reside in Monticello and the company
does general machining and has a product 1 ine. Customers
include John Deere, Consolidated Freightway, etc. On June 10,
Mr. Kirscht and Koropchak visi ted the company to further
discuss financial options. The company has a buyer on their
existing property and the HRA received a copy of the company's
letter of commitment for a Monticello location.
The proposed project would be to construct an 11,000 square
foot facility (8,000 sq ft manufacturing and 3,000 sq ft
office with an unfinished 3,000 sq ft mezzinine) on three
acres. Property location being to the east of the Remmele
Addi tion and Fallon Avenue easement and to the north of
Chelsea Road. Farm Credit and the Bargers have agreed on a
purchase price and Taylor Land Surveyors have been given the
go-ahead for plat preparation. Existing employment is 15 full
time personnel and with a projection of 8 additional within
the next two years. Wages between $10.00 to $13.00.
Mr. Kirscht and Koropchak met with the Bargers again June 25
to define the financial package. Time is important as
occupancy promised on the Rogers building is November 1st.
Koropchak received a $5,000 check to be held until such time
as the Development Agreement is executed. The uses of funds
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HRA Minutes
6-26-92
Page 2
are for land, $50,000 and building, $275,000 for a total
project costs of $325,000. Sources of funds are bank,
$175,000; GMEF, $50,000; CMIF, $50,000; and TIF, $50,000 for
a total of $325,000. The project is estimated to generate
annual taxes of $12,500.
Koropchak reminded the HRA that upon authorization, the HRA
commits to the BDS fee of $3,850, the flat fee for TIF Plan
preparation. The TIF time frame was reviewed with a
completion date of August 10 which would coincide with the
plat schedule. Lowell Schrupp inquired of the amount of
equity into the project, Koropchak responded that TIF is used
as equi ty in the financial packaging and noted that the
company has purchased $116,000 of equipment which is being
delivered today and is not part of the financial package. It
is the intent of Koropchak to visit Rainbow Enterprises as a
courtesy because Suburban and Rainbow both do general
machining.
Chairperson Larson reported he spoke to Mr. Hoglund who said
in his opinion Suburban Machine and Manufacturing meets the
city's industrial objectives. Lowell Schrupp made a motion
authorizing BDS, Inc. to prepare the TIF Plan for TIF District
No. 1-14 for Suburban Machine & Manufacturing, Inc. The
motion was seconded by Everette Ellison, and without further
discussion the motion passed unanimously.
3.
CONSIDERATION TO SCHEDULE A SPECIAL BRA MEETING TO ADOPT THE
TIF PLAN FOR TIF DISTRICT NO. 1-14.
Inorder to keep on the suggested time scheduel and to allow
public notice of meeting, the HRA set Monday, July 6, 1992 as
their next meeting date. Meeting place is the City Hall at
7:00 PM, agenda to be mailed prior to meeting. The regular
Wednesday, July 1, 1992 meeting will not take place.
4. ADJOURNMENT.
The special HRA meeting adjourned at 9:00 AM.
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Ollie Koropchak, HRA Executive Director