HRA Minutes 02-04-1993
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MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Thursday, February 4, 1993 - 7:00 p.m.
City Hall
MEMBERS PRESENT:
Chairperson Al Larson, Vice President Ben
Smith, Everette Ellison, and Tom St. Hilaire.
MEMBERS ABSENT:
Lowell Schrupp.
STAFF PRESENT:
Ollie Koropchak.
STAFF ABSENT:
Rick Wolfsteller and Jeff O'Neill.
1. CALL TO ORDER.
Chairperson Larson called the HRA meeting to order at 7:04
p.m.
2. CONSIDERATION TO APPROVE THE JANUARY 6, 1993 HRA MINUTES.
Tom St. Hilaire made a motion to approve the January 6, 1993
HRA minutes. Seconded by Ben Smith and with no corrections or
additions, the minutes were approved as written.
3.
CONSIDERATION TO ELECT 1993 HRA OFFICERS:
VICE-CHAIRPERSON.
CHAIRPERSON AND
Tom St. Hilaire made a motion nominating Al Larson and Ben
Smi th as 1993 HRA Chairperson and Vice-Chairperson,
respectively. The motion was seconded by Everette Ellison and
wi th no addi tional nominations or discussion, the motion
passed unanimously.
4.
CONSIDERATION OF A SENIOR HOUSING UPDATE:
a) Letter of Pat McCullough - The letter named the Guardian
Angels Foundation and Elim Care, Inc. as parties interested in
senior housing development and ownership.
b) Schwientek Plans - Mr. Brad Larson, a local developer with
senior housing development experience, has expressed an
interest in the HRA's concept for congregrate or assisted-
living housing. With the combined above referrals, Barb
Schwientek sees no need to advertise for a developer wi th
senior housing expertise. At an upcoming meeting, the
Hospital Board will consider their role in the development of
a senior project: management/services.
c) Discuss potential sites - As the HRA may be involved in the
acquisition and demolition of existing property for a senior
housing project, the HRA briefly discussed the areas along
Broadway to the east and west of the hospital and the Cedar
Crest area. The HRA concluded that the site location may best
be determined by the market study or the developer.
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HRA MINUTES
FEBRUARY 4, 1993
Next, members discussed the need for the HRA to authorize
Phase I of the market study at $5,600, as this cost could be
recovered through the project funding. A current market study
is part of the project funding application requirement. Some
members fel t the HRA' s role was complete as two excellent
interested developers had been identified and the HRA primary
purpose now is to encourage either developer to proceed and
get the project rolling. Some members saw the need to
authorize the market study and others felt a study may already
be completed. To encourage project follow-through, the HRA
members agreed to invite Mr. Larson and Ms. Mills to make a
presentation to the HRA on or prior to March 3.
5.
CONSIDERATION OF A REPORT AND FOLLOWUP TO THE NAHRO
CONFERENCE.
a) Minnesota Housing Finance Agency - Koropchak reported that
this program provides dollars for loans to first-time home
buyers. The program has more liberal limi ts on household
income and acquisi tion costs than the Farmers Home
Administration program, and the HRA can set additional
requirements. NAHRO Executive Director Scott Knutson sees the
program as an excellent public relations tool for a city or
HRA and the program requires Ii ttle administrative time.
Koropchak informed the HRA that a couple of local banks
expressed interest in the program; however, she had no idea if
a need exist in Monticello for such a program. It was
recommended to acquire additional information on the program.
b) Section 8 - Koropchak informed HRA members that this rental
housing assistance program is available to Monticello
residents through the St. Cloud HRA. Applications are taken
the first of each month and a waiting list does exist. The
program is not marketed by the St. Cloud HRA because of the
high demand and 1 imi ted dollars avai lable. Section 8 is a
"spot" rental assistance program. The program is for low and
moderate household incomes and is popular because it allows
renters an option to rent outside a mul ti-housing
project.Dollars are only allocated to HRA's with an
established eredi tabili ty for administrating the program which
requires an administrative staff. This an informational item
only.
c) Richfield Rediscover - The Richf ield HRA markets and
offers to purchase a substandard homes at fair market value,
demolishs the homes, and sells the land at fair market value
to an interested developer. The developer agrees to construct
a new home based on Richfield's HRA requirements and the home
is made available to first-time home buyers. HRA members were
interested in this program and requested Koropchak obtain
additional information.
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HRA MINUTES
FEBRUARY 4, 1993
d) Wright County HRA - Koropchak reported that the Wright
County HRA which had been established through a resolution
adopted by the previous County Commissioners has now been
relinquished by the newly elected commissioners.
6. CONSIDERATION TO REVIEW RESULTS OF THE ELIMINATION OF OTHER
FINANCIAL PACKAGING FROM THE BDSjHRA CONTRACT.
First, Koropchak provided HRA members with a copy of the
letter mailed to Mr. Pelstring acknowledging the HRA's desire
to delete "other financial packaging" from the contract
between the HRA and BDS, Inc.
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Secondly, Koropchak informed members upon the HRA's direct
inquiry of whether "other financial packaging" BDS charges
were a legal expenditures under the 10% administrative
allowance, Koropchak again contacted Mr. John Dean of Holmes
and Graven. Koropchak apologized for the error stating
financial consultant fees were legal expenditures and asked
the HRA to reconsider and suggested amending the January HRA
motion authorizing the transfer of $8,180.51 (SMM) and
$14,951.30 (Aroplax) to authorization to transfer $4,123.71
(SMM) and $9,185.27 (Aroplax) from the Surplus Fund into a HRA
Development Fund. The HRA still saw the BDS charges
associated with other financial packaging as extreme and out-
of-line and reaffirmed their desire to delete "other financial
packaging" from the contract. Tom St. Hiliare made a motion
to amend the January motion and authorized the transfer of
$4,123.71 (SMM) and $9,185.27 (Aroplax) from the Surplus Fund
into an HRA Development Fund. The motion was seconded by
Everette Ellison and with no further discussion, the motion
passed unanimously. The HRA wished retain the option to
consider paying for "other financial packaging" for a real
plum company.
7.
CONSIDERATION TO AUTHORIZE EXECUTION OF THE DEVELOPMENT
CONTRACT CERTIFICATE OF COMPLETION FOR AROPLAX AND SMM.
As per the Development Contract, the HRA is to furnish the
developer with Certificate of Completion upon the completion
of minimum improvements and upon the final occupancy
certificate issued by the City Building Official. Koropchak
provided a copy of the issued Certificate of Occupancy and
attached "items to be escrowed" letter for the Aroplax and SMM
projects. Ben Smith made a motion authorizing the execution
of the Certificate of Completion for the Aroplax and SMM
projects. Seconded by Tom St. Hilaire and with no further
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HRA MINUTES
FEBRUARY 4, 1993
discussion, the motion passed unanimously. The Certificate of
Completion is to be recorded at the Wright County Recorders
Office by the developer.
8.
CONSIDERATION OF PROSPECT UPDATES:
a) Wilson Tool International - HRA members received a copy of
the letter acknowledging the IDC visi t to Wilson Tool on
January 26, proposed project summary, the estimated TIF
dollars available for direct assistance, and the two financial
packaging options offered to Wilson Tool. Direct assistance
based on tax increment generated over eight years for a 40,000
sq ft concrete mfg facility with the TIF Penalty reduction is
$155,000. Koropchak submitted to HRA members the Wilson Tool
marketing pieces which depicts the similiari ty to Remmele
Engineering. The HRA was very supportive of the project and
TIF level of assistance offered. Mr. Emery informed Koropchak
that he had visited the Monticello industrial sites on
Saturday and found Monticello's location excellent; however,
other communities were being visited with data and financial
proposals being reviewed and analyzed wi thin the next few
weeks.
b) All-Temp Distribution - City staff continues to meet with
Mr. John Holman for development of the public improvements and
to secure a future rail availablity commitment. Forth coming
plans are to meet with the developer, Hoglund Family, City
Engineer, BDS, and City Staff.
c) Custom Canopy - With a misunderstanding of the land price
from the Oakwood Partnership, the company has contacted Mr.
Pheffer regarding acreage within the Monticello Commerce
Center. The Letter of Intent has not been received nor has a
visit by the IDC been made. The HRA remains supportive of the
annual $5,000 TIF pay-as-you-go assistance subject to
development approvals.
d) Recreational Parts and Equipment - Koropchak reported to
HRA members, as per their request, that the company projects
50% sales from retail and 50% sales from catalog with a faster
growth in the catalog area. The company at this time will not
be selling snowmobiles or motorcycles; however, would not
commit to never selling snowmobiles or motorcycles in the
future. The company requested TIF assistance and the HRA was
requested to make a policy decision. Members considered the
direct retail competition with existing businesses, unskilled
labor wages associated wi th the proposed project, and the
similiarity to the Martie project. The HRA liked the concept
of many small developments and agreed to TIF pay-as-you-go
financial assistance for the recreational parts and equipment
company based on the tax increment generated from the
warehouse/catalog area only.
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HRA MINUTES
FEBRUARY 4, 1993
9. CONSIDERATION TO REVIEW AND ACCEPT THE 1993 ECONOMIC
DEVELOPMENT WORK PLAN.
Tom St. Hilaire made a motion acknowledging HRA acceptance of
the 1993 Economic Development Work Plan and IDC Budget.
Seconded by Everette Ellison and without further discussion,
the motion passed unanimously.
10. OTHER BUSINESS.
Koropchak informed HRA members that inorder to reschedule a
public meeting by Law a 72-hour notice must be posted.
Through HRA Bylaws the first Wednesday of each month is
designated as the regular meeting date at 7:30 p.m.
Chairperson Larson and Koropchak encouraged regular attendance
or sufficient notice of planned absentee. Everette Ellison
acknowledged he would be out-of-town February 13 through March
18. In addition, Mr. Schrupp is out-of~town through March.
Chairperson Larson informed members that the Monticello HRA
was established through a City Council resolution adopted in
November 1970 and first commissioners were appointed in March
1971. Chairperson Larson made a motion to amend the HRA Bylaws
changing the regular meeting time from 7:30 p.m. to 7:00 p.m.
Seconded by Everette Ellison and without further discussion,
the motion passed unanimously.
11.
ADJOURNMENT.
The HRA meeting adjourned at 8:45 p.m.
G 9-9~ ~
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Ollie Koropchak, HRA Executive Director
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