HRA Minutes 07-06-1992
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MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Monday, July 6, 1992 - 7:00 PM
City Hall
MEMBERS PRESENT:
Chairperson Al Larson (tardy) , Vice
Chairperson Ben Smith, Lowell Schrupp, and Tom
St. Hilaire.
MEMBER ABSENT:
Everette Ellison.
STAFF PRESENT:
Ollie Koropchak.
STA1!'F ABSENT:
Rick Wolfsteller and Jeff O'Neill.
GUEST PRESENT:
Bradley and Mary Barger, Suburban Machine &
Manufacturing, Inc.
1. CALL TO ORDER.
The HRA meeting was called to order by Vice Chairperson Ben
Smith at 7:18 PM with three HRA members present.
2.
CONSIDERATION TO APPROVE THE MAY 6, MAY 13, and JUNE 26, 1999_
HRA MINUTES.
A motion was made by Lowell Schrupp to approve the May 6, 1992
HRA minutes, seconded by Ben Smith, and with no corrections or
additions the minutes were approved as written.
A motion was made by Tom St. Hilaire to approve the May 13,
1992 HRA minutes, seconded by Lowell Schrupp, and with no
corrections or additions the minutes were approved as written.
A motion was made by Lowell Schrupp to approve the June 26,
1992 HRA minutes, seconded by Ben Smith, and with no
corrections or additions the minutes were approved as written.
Al Larson arrived at the HRA meeting and chaired the remaining
meeting.
3.
CONSIDERATION TO ADOPT A RESOLUTION APPROVING THE TIF PLAN FOR
TIF DISTRICT NO. 1-14, SUBURBAN MACHINE & MANUFACTURING, INC.
AND TO CALL FOR A PUBLIC HEARING FOR THE DISPOSITION OF LANDS.
Koropchak briefly gave a background of the proposed project
and noted the importance of a timely development to meet the
company's expected occupancy date of November 1, 1992. This
requires a City Council TIF public hearing and the adoption of
the TIF Plan for District No. 1-14 and the approval of the
final plat, the execution of a Private Redevelopment Contract
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HRA MINUTES
JULY 6, 1992
between the Bargers and the HRA, the approval of the building
and site plans, and the completion of financial package by
August 10, 1992.
Brad and Mary Barger present at the meeting informed the HRA
that their company originated in 1980 as a machine shop in
P 1 ymou th I expanding and becoming qui te di versi f ied through
development of product-lines. They became Monticello
residents in 1987 and within the last year the company bought-
out WED Precision Machining. The proposed 11,000 sq ft
structure will comply wi th the Business Campus Ordinance
having a 50% contrasting material on the metal building. They
expect the preliminary building and site plans to be completed
within a week or two.
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Koropchak presented members with a copy of the TIF Plan for
TIF District No. 1-14 and the resolution thereof as prepared
by Business Development Services, Inc. (BDS) for Suburban
Machine & Manfacturing, Inc. (SMM) to review. Direct TIF
assistance to the company is $50,000 for land write-down and
si te improvements, inf lated si te improvement costs in the
budget plan include the HACA factor. Projected annual tax
increment is $12,500.
Lowell Schrupp made a motion to adopt the resolution approving
the modification of Redevelopment Project No.1 of the Central
Monticello Redevelopment Plan and approval of the TIF Plan for
TIF District No. 1-14. The motion was seconded by Tom St.
Hilaire and wi thout further discussion the motion passed
unanimously. The HRA adopted the resolution because the
proposed SMM project complied with all but one (does not
eliminate blight) of the City's TIF policies.
Tradi t lanaI 1 y, Koropchak said, "For TIF budgets of under
$100,000, the City has not sold bonds but an internal loan has
been issued by the City to the HRA." Administrator
Wo1fsteller advised Koropchak that the City would loan the BRA
the funds at an interest rate of 6.5%. However, the HRA was
also made aware of its projected Excess TIF Funds. Tom St.
Hilaire made a motion authorizing the acceptance of either/or
sources of funds, whichever, keeps the SMM project moving.
First consideration to be the acceptance of a City loan to the
HRA at 6.5% interest rate, as recommended by Pat Pelstring,
BDS, Ine. Second consideration being the authori ty to use
Excess TIF Funds. The motion was seconded by Ben Smith and
without further discussion the motion passed unanimously.
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lIRA MINUTES
JULY 6, 1992
Next, Lowell Schrupp made a motion calling for a public
hearing on August 5, 1992, for the acquisition and disposition
of lands relating to TIF District No. 1-14. This the date of
the regular HRA meeting. The motion was seconded by Ben Smith
and without further discussion the motion passed unanimously.
Asked of the Bargers, by a HRA member, to their reaction of
the Business Campus Ordinance; Not less than 30% of a lot,
plat, or parcel must be as a grass plat and shall be
landscaped. The Bargers responded they had little reactlon to
the ordinance after hearing the definition as given by the
Building Official. Landscaping including stones, rocks, etc.
and grass meaning and not limi ted to grass but a covering
maintained at a six inch level.
4.
CONSIDERATION TO ADOPT A MEMORANDUM OF UNDERSTANDING BETWEEN
WRIGHT COUNTY AND THE MONTICELLO HRA REGARDING OUTLOT A,
COUNTRY CLUB MANOR.
Koropchak referred to the agenda contents as prepared and
written by Administrator Wolfsteller. Additionally, Mr. John
Dean of Holmes & Graven, advised Koropchak that the HRA should
hold a public hearing on the acquisi tion of said land for
future disposition and redevelopment even if acquisition is
through the tax forfeiture process as led by the city. The
property is zoned as R-3 (Medium Density Residential). The
members viewed the lIRA, as a holding company of the said
property for the City of Monticello.
Lowell Schrupp made a motion to adopt the Memorandrum of
Understanding between Wright County and the Monticello HRA
regarding Outlot A, County Club Manor, subject to no
opposition or negative comments at the authorized HRA public
hearing of August 5, 1992. The motion was seconded by Tom St.
Hilaire, further discussion included the suggestlon to market
the property as soon as possible. The mot ion than passed
unanimously.
5. CONSIDERATION OF A FOLLOW-UP TO THE JUNE 10 WORKSHOP PRESENTED
BY MR. PAT PELSTRING.
Chairperson Larson summarized the workshop as a brainstorming
session outlining alternatlve sources of funds to assist with
future economic development projects. Chairperson Larson and
Ben Smith were in attendance at the workshop from the lIRA.
Enclosed is a copy of Koropchak's summary.
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HRA MINUTES
JULY 6, 1992
6. CONSIDERATION OF PROJECT UPDATES: AROPI.AX CORPORATION AND JM
OIL.
Koropchak reported the Aroplax funding package slowly
continues to come together, announcing the publ ic hearing
scheduled for July 27, 1992, 7:00 PM at the City Council
Chambers relating to the city application for funding to the
State of Minnesota.
JM Oil update as prepared and written by Jeff O'Neill, and
submitted in the HRA agenda.
7. CONSIDERATION TO REVIEW BDS, INC. BILLINGS.
The HRA reviewed and acknowledged payment of the Business
Development Services, Inc. (BDS) billing statements of May 22
and June 23, 1992. Asked of the relationship between the City
and BDS, it was suggested to review this with city staff and
Pat Pelstring.
8.
OTHER BUSINESS.
Chairperson Larson and Koropchak outlined the proposed
agricultural product manufacturer's plan and product as
presented to the Economic Development Team by Mr. Nick
Stockwell. The BRA supported the concerns raised by the IDC
and the local team, and endorsed Monticello's withdrawal as an
interested community for the planned agri-product development
project.
9.
ADJOURNMENT.
The HRA meeting adjourned at 8:15 PM.
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Ollie Koropchak, HRA Executive Director
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