HRA Minutes 09-08-1993
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MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, September 8, 1993 - 7:00 p.m.
City Hall
MEMBERS PRESENT:
Chairperson Al Larson, Vice Chairperson Ben
Smith, Lowell Schrupp, and Tom St. Hilaire.
MEMBERS ABSENT:
Everette Ellison.
STAFF PRESENT:
Ollie Koropchak.
STAFF ABSENT:
Rick Wolfsteller and Jeff O'Neill.
GUEST PRESENT:
L. T. "Rusty" Demeules and Jim Mae, Standard
Iron and Wire Works, Inc.
Pat Pelstring and Lenny Kirscht, BDS, Inc.
1. CALL TO ORDER.
Chairperson Larson called the HRA meeting to order at 7:00
p.m.
2 .
CONSIDERATION TO APPROVE THE AUGUST 19, 1993 BRA MINUTES.
Consideration to approve the August 19, 1993 HRA minutes was
waived as the minutes were not written.
3.
CONSIDERATION TO ADOPT THE RESOLUTION RELATING TO THE
MODIFICATION, BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN
AND FOR THE CITY OF MONTICELLO, OF THE REDEVELOPMENT PLAN
RELATING TO REDEVELOPMENT PROJECT NO.1, THE MODIFICATION OF
THE TAX INCREMENT FINANCING PLANS RELATING TO TAX INCREMENT
FINANCING DISTRICTS NOS. 1-1 THROUGH 1-12 AND TAX INCREMENT
FINANCING DISTRICTS NOS. 1-14 THROUGH 1-15 AND THE APPROVAL
AND ADOPTION OF THE TAX INCREMENT FINANCING PI.AN FOR TAX
INCREMENT FINANCING DISTRICT NO. 1-13, ALL LOCATED WITHIN
REDEVELOPMENT PROJECT NO.1.
Koropchak informed the HRA members of the three major points
of the resolution for adoption. First, with the modification
of the Redevelopment Plan, the TIF District No. 1-7 budget
would increase by $126,000; and secondly, with the adoption of
the TIF Plan for TIF District No. 1-13, the district's budget
would total $334,000. The proposed 48,000 square foot project
would establish an Estimated Market Value of $1,250,000, a
Captured Tax Capacity of $55,715, and an Average Annual
Adjusted Increment of $59,317. Lastly, the resolution
request the City Council call for a public hearing date of
September 27, 1993.
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HRA MINUTES
. SEPTEMBER 8, 1993
Mr. Demeules and Mr. Moe shared the project I s preliminary
building plans and responded to HRA questions. They
anticipate approximately 25 of their current office employment
to transfer and the need to hire 25-30 new production
employees within the first year. Production to begin
March/April of 1994 at the Monticello facility. The company
has 28,000 square feet of production space in Sauk Centre and
14,000 square feet of production space in Alexander which will
remain in operation. The current office facility in Plymouth
will be placed on the market. Contracts are negotiated
annually with on-going customs such as John Deere. Recent
other projects completed were the stair-rails for the Mall of
America and the Eagle's Stadium. Job training is provided in-
house and at training schools. The company endorses a close
relationship with schools and schlorship funds for students.
The company is family held and they see Monticello's location
as providing options for spouse employment.
Chairperson Larson thanked Mr. Demeules and Mr. Moe for their
time and welcomed their business to Monticello.
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Tom St. Hilaire made a motion to adopt the resolution
modifying the Redevelopment Plan relatng to Redevelopment
Project No.1, the modification of the TIF Plans relating to
TIF Districts Nos. 1-1 through 1-12 and TIF Districts Nos. 1-
14 through 1-15 and the approval and adoption of the TIF Plan
for TIF District No. 1-13, all located within Redevelopment
Project No.1. Ben Smi th seconded the motion and wi th no
further discussion the motion passed unanimously. The motion
passed as the project and the plan meet the requirements of
the Minnesota Statutory and HRA's TIF policy.
4.
CONSIDERATION TO REVIEW AND ACCEPT THE PRELIMINARY DRAFT OF
THE PRIVATE REDEVELOPMENT CONTRACT BETWEEN THE DEMEULES FAMILY
LIMITED PARTNERSHIP AND THE HRA AS PREPARED BY HOLMES &
GRAVEN.
Because the dollar amount and procedure of the semi-annual
reimbursement installments for the public improvements in the
amount of $311,000 and the "RISTIFA" redeveloper payments are
unable to be clarified at this time, Koropchak recommended the
HRA authorize City Staff to complete the final negotiations
and details of the contract and thereafter authorize the HRA
Chairperson to execute the document.
Because
(Lots 7
the HRA will again transfer ti tIe of the property
and 8, Block 2, OIP) as written in the Private
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HRA MINUTES
. SEPTEMBER 8, 1993
Redevelopment Contract, the HRA is required to hold a public
hearing on the acquisition and disposition of the raw lands.
Koropchak suggested the HRA call for a public hearing on
Monday, September 27, 1993, 5:00 p.m., prior to the City
Council meeting.
Ben Smith made a motion accepting the preliminary draft of the
Private Redevelopment Contract between the Demeules Family
Limited Partnership and the HRA, authorizing City Staff to
negotiate and finalize the contract, and thereafter
authorizing the HRA Chairperson to execute the document. The
motion included calling for a public hearing on September 27,
1993, 5:00 p.m., City Hall. Lowell Schrupp seconded the
mot ion and wi thou t further discussion, the mot ion passed
unanimously.
5.
CONSIDERATION TO REVIEW AND ACCEPT THE PRELIMINARY DRAFT OF
THE AMENDMENT TO THE PRIVATE REDEVELOPMENT CONTRACT BETWEEN
NAWCO (THE H~WINDOW) AND THE HRA AS PREPARED BY HOLMES &
GRAVEN.
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Tom St. Hilaire made a motion accepting the preliminary draft
of the amendment to the Private Redevelopment Contract between
NAWCO (The H-Window) and the HRA, authorizing City Staff to
negotiate and finalize the contract, and upon receipt of the
evidence of mortgage financing and an itemized list of the
public improvements authorized the HRA Chairperson to execute
the document. Lowell Schrupp seconded the motion and without
further discussion, the motion passed unanimously.
6.
CONSIDERATION TO REVIEW THE PERFORMANCE ACCOUNTABILITY REPORT
AND BILLING ADJUSTMENTS AS PREPARED BY BDS, INC.
Mr. Pat Pelstring apologized for the error and for the
uncomfortable si tuation created as the resul t of a wrong
assumption to legally decertify and recertify an Economic
Development District. Mr. Pelstring submi tted a wri tten
memorandum to the HRA and would recommend billing adjustments
on the next BDS statement.
Mr. Pelstring outlined the financial packages prepared for the
H-Window Company, highlighting the very-aggressive first
package which included the issuance of General Obligation
Bonds by the EDA (denied) to the State's $500,000 Economic
Recovery Fund application. Mr. Pelstring felt that Koropchak
and BDS, Inc. had been successful at receiving a preliminary
response from the State for potential award of $400,000.
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HRA MINUTES
SEPTEMBER 8, 1993
The HRA felt BDS' performance has been both outstanding and
professional and could accept that everyone makes a mistakes.
However, the HRA was more concerned with the length of time
BDS took to respond to the City Staff's concern of legally
decertify and recertify an Economic District. From the end of
May until August 12.
The HRA accepted Mr. Pelstring's apology and suggested BDS
expedite their respond to City Staff questions or concerns.
7. OTHER BUSINESS.
a) H-Window Follow-up - Koropchak reported that Mr. Lemme
anticipate construction to begin September 14.
b) Lenny Kirscht reported that Koropchak and he would attend
the Wright County Commission meeting on September 14 to
request County approval for submission of the State
Economic Recovery Fund Application to assist Standard
Iron and Wire Works, Inc. Dollar request is $250,000.
The County is being asked to submi t the application
because the City of Monticello has maximized its annual
$500 I 000 limi t for a government uni t per the State's
fiscal year.
8.
ADJOURNMENT.
The HRA meeting adjourned at 8:25 p.m.
CJ~ \< d\&-AS)~.
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Ollie Koropchak, HRA Executive Director
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