HRA Minutes 04-07-1993
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MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, April 7, 1993 - 7:00 p.m.
City Hall
MEMBERS PRESENT:
Chairperson Al Larson, Vice Chairperson Ben
Smith, Lowell Schrupp, Everette Ellison, and
Tom St. Hilaire.
STAFF PRESENT:
Rick Wolfsteller and Ollie Koropchak.
STAFF ABSENT:
Jeff O'Neill.
1. CALL TO ORDER.
Chairperson Larson called the HRA meeting to order at 7:03
p.m.
2 .
CONSIDERATION TO APPROVE THE MARCH 3, 1993 HRA MINUTES.
Chairperson Larson requested that under agenda item #2, the
name Mr. Larson be corrected to read Brad Larson or Al Larson,
as appropriate. Ben Smith made a motion to approve the March
3, 1993 HRA minutes with the requested corrections. Tom St.
Hilaire seconded the motion and with no further corrections or
additions, the minutes were approved.
3.
CONSIDERATION TO ADOPT A RESOLUTION FOR MODIFICATION OF THE
REDEVELOPMENT PLAN RELATING TO REDEVELOPMENT PROJECT NO.1,
THE MODIFICATION OF THE TIF PLANS RELATING TO TIF DISTRICT
NOS. 1-1 THROUGH 1-14 AND THE APPROVAL AND ADOPTION OF THE TIF
PLAN FOR TIF DISTRICT NO. 1-15, ALL LOCATED WITHIN
REDEVELOPMENT PROJECT NO.1.
Koropchak reviewed the highlights of the plan for TIF District
No. 1-15 being created for Stephen P. and Joan M Birkeland,
Jr. Through the adoption of the enclosed resolution, the HRA
would be approving this plan, and modifying the plans for TIF
District Nos. 1-1 through 1-14 and the redevelopment plan for
Redevelopment Project No.1.
The HRA determined that the District No. 1-15 plan complied
with the TIF Guidelines and Redevelopment plan objectives;
therefore, Everette Ellison made a motion to adopt the
resolution for modification of the Redevelopment Plan relating
to Redevelopment Project No.1, the modification of the TIF
Plans relating to TIF District Nos. 1-1 through 1-14 and the
approval and adoption of the TIF Plan for TIF District No. 1-
15, all located wi thin Redevelopment Project No.1. The
motion was subject to the execution of the Private Development
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HRA MINUTES
APRIL 7, 1993
Contract between the HRA and the Birkelands on or prior to
April 12, 1993. Seconded by Tom St. Hilaire and without
further discussion, the motion passed unanimously.
4. CONSIDERATION TO REVIEW AND ACCEPT THE PRELIMINARY DRAFT OF
THE PRIVATE DEVELOPMENT CONTRACT BETWEEN THE HRA AND STEPEN P.
AND JOAN M. BIRKELAND, JR. (CUSTOM CANOPY).
Koropchak reviewed the Private Development Contract as
prepared by Mr. John Dean, Holmes & Graven, with HRA members.
A copy of the contract was provided to the developers and the
developer's attorney. The contract which supports the TIF
Plan defines the development obligations of the Birkelands and
the obligations of the HRA. Ben Smith made a motion accepting
the terms of the preliminary draft of the Private Development
Contract and authorized the HRA Chairperson to execute the
contract. Seconded by Lowell Schrupp and wi thout further
discussion, the motion passed unanimously.
5.
CONSIDERATION OF AN UPDATE ON THE GUARDIAN ANGELS FOUNDATION
SENIOR HOUSING PRESENTATION.
Koropchak reported that since preparation of the HRA agenda
and the meeting of April 2 between Carol Mills and Barb
Schwientek, the HRA is being asked to consider authorizing the
preparation of a senior housing market study, preparation to
be completed by Pat McCullough. The completed study must meet
both FmHA and HUD funding application requirements. Via Ms.
Schwientek, Brad Larson was contacted and agreed to the
preparation of a market study by Pat McCullough. The HRA is
being asked to authorize preparation of the study in order to
meet the 1993 funding application deadlines. If either
funding is approved, the HRA will be reimbursed for all or
part of the market study fee. The study will be for both
congregate and assisted-living housing. An FmHA moratorium
limi ts the maximum number of uni ts for assisted-living to
twenty-four; however, the moratorium does not apply to
congregate housing.
The January HRA minutes read that time for completion of Phase
I is 6 to 8 weeks for an approximate cost of $5,600 and if
warrantable, Phase II would be completed within another one-
to-two weeks for an approximate cost of $3,500.
Chairperson Larson reported that the Monticello-Big Lake
Hospital District has expressed an interest as developers.
Under that scenario, Carol Mills would act as a consultant,
the Hospi tal Board would be the sponsoring board, and a
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HRA MINUTES
APRIL 7, 1993
community board (to be established) would serve as the non-
prof i t organization. Potential si te of interest is to the
east of the Hospital District boundary. Chairperson Larson
listed the three developer options as Brad Larson, Guardian
Angels, and the Monticello-Big Lake Hospital District;
however, he did not endorse, support, or recommend anyone
developer.
HRA opinions varied on whether to or not to authorize the
preparation of a market study. Tom St. Hilaire felt the HRA
should act as a facilitator only and not claim ownership;
authorization of a market study meant it becomes an HRA
project. Ben Smith felt the HRA should put money on the table
for the study or the project would be a "no go" in 1993.
Everette Ellison agreed with Mr. Smith, saying the HRA should
stop fishing and cut the bait. Both recognized the authorized
HRA expenditure was a gamble. Lowell Schrupp suggested the
HRA act on the authorization after the Guardian Angels
presentation in May. Chairperson Larson said he generally
endorses free enterprise; however, this time saw the need for
the HRA to authorize the market study in order to meet
required 1993 funding application deadlines.
Ben Smith made a motion authorizing Pat McCullough to begin
preparation of senior housing market study for assisted-living
and congregate housing. The study must meet both the FmHA and
HUD funding application requirements. The authorized fee to
be expended from the TIF Surplus Fund. Everette Ellison
seconded the motion and with no further discussion the motion
passed. Yeas: Ben Smith, Everette Ellison, and Al Larson.
Nay: Tom St. Hilaire. Abstention: Lowell Schrupp. The HRA
endorsed no developer.
The Guardian Angels presentation is scheduled for May 5, the
HRA regular meeting.
6. CONSIDERATION TO REVIEW THE POTENTIAL TIF DISTRICT SURPLUS
FUNDS UPDATE.
Administrator Wolfsteller reviewed the enclosed TIF Surplus
projections stating he calculated the surplus by taking the
number of years remaining in each TIF District times its 1992
revenue. For the total projected revenues of $469,294, the
total annual debt-service is approximately $200,000. The
report was for HRA TIF District Nos. 1-1 through 1-14. Mr.
Wolfsteller concluded that generally speaking, the HRA has
between $150,000 to $200,000 of spendable monies.
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7. CONSIDERATION OF AN UPDATE ON THE MHFA AND REDISCOVER
RICHFIELD PROGRAMS.
Koropchak reviewed the enclosed agenda information.
8. CONSIDERATION OF PROSPECT UPDATES.
All-Temp Distribution - A letter from NSP acknowledged their
future rail needs. The interested buyer and sellers of the
Hoglund property are to meet and negotiate land costs.
Wilson Tool ~ The company has not made a site selection and
Monticello remains in the running.
9. OTHER BUSINESS.
None.
10. ADJOURNMENT.
Chairperson Larson made a motion to adjourn the HRA meeting
and Tom St. Hilaire second the motion. The HRA meeting
adjourned at 8:13 p.m.
aoL ~C'\~J)~-~
Ollle Koropchak, Executive Director
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