HRA Minutes 08-19-1993
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MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Thursday, August 19, 1993 - 7:00 p.m.
City Hall
MEMBERS PRESENT:
Chairperson Al Larson, Everette Ellison, and
Tom St. Hilaire.
MEMBERS ABSENT:
Ben Smith and Lowell Schrupp.
STAFF PRESENT:
Rick Wolfsteller and Ollie Koropchak.
STAFF ABSENT:
Jeff O'Neill.
GUEST PRESENT:
Ken Maus, Mayor
Steven Lemme, H-Window Company
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 11, 1993 HRA MINUTES.
Tom St. Hilaire
BRA minutes.
corrections or
written.
made a motion to approve the August 11, 1993
Seconded by Everette Ellison and wi th no
additions, the minutes were approved as
3. CONSIDERATION TO APPROVE OF THE USE OF TIF SURPLUS FUNDS FOR
THE H-WINDOW EXPANSION.
As it was determined by BnS, Inc. on August 12, the day after
the last HRA meeting, it is illegal to split and de-certify an
existing TIF District boundary for creation of a new district.
Therefore, the BRA is now being asked to consider the approval
of the use of TIF surplus funds in the amount of $20,000 over
eight years or a total $160,000 of assistance as originally
proposed. It is estimated that the 25,600 sq ft manufacturing
space will generate approximately $35,000 of tax increment in
years 1995 and 1996 if the expansion is fully assessable on
January 2, 1994. This district is not subject to LGA or HACA
penalties. Based on the current laws, a new TIF District can
be created after July 1, 1997 on the undeveloped parcel.
Koropchak reiterated that the IDC fully endorsed of the H-
Window expansion and requested the BRA consider the project a
number one priority.
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liRA MINUTES
AUGUST 19, 1993
Mr. Lemme said, "The company is committed to the 2.1 million
dollar expansion and if need be the monies will come from
Norway. " However, the proposed financial funding has been
both misleading and disappointing. State and community
support today is important as it sets the tone for planning
decision of the future. Sixty new jobs will be created at
wages between $8.00-$8.50 per hour (unskilled).
If the BRA is able to collect additional increment of $70,000,
can the HRA offer the remaining $90,000 as a low-interest rate
loan? Mayor Maus suggested the HRA consider in-house surplus
funds; therebye, not setting a precedent. Administrator
Wolfsteller estimated surplus funds for TIF District No. 1-7
would amount to approximately $71,000 through the life of the
district.
Based on the projected $70,000 new increment from the 25,600
sq ft expansion (estimate did not include 4,000 sq ft office
expansion) and District No. 1-7 estimated $71,000 surplus
funds, Tom St. Hilaire made the following motion. Motion was
to approve the use of $160,000 increment and surplus fund
combination from TIF District No. 1-7 to assist the H-Window.
Payment over eight years. Everette Ellison seconded the
motion and wi th no further discussion, the motion passed
unanimously.
Additionally, Tom St. Hilaire made a motion recommending a
not-to-exceed six month period for the City Council and HRA to
consider swapping lots: City's Oakwood Second Addition and
HRA Lot 5, Block 3, OIP. The motion was seconded by Everette
Ellison and wi th no further discussion, the motion passed
unanimously.
4. CONSIDERATION TO REVIEW BDS BILLINGS.
Koropchak questioned BDS' February through June billing
statement, noting that the presence of Mr. Kirscht at the May
25 H-Window Company meeting was upon the request of Mr.
Pelstring and if a need exists for both Mr. Pelstring and
Kirscht to structure the H-Window proposal. Addi tionall y,
questioned was the June 14 billing for attendance at a
Monticello Rotary meeting as Koropchak's guest.
Chairperson Larson requested BDS submit a written report to
the HRA as to what happened wi th the H-Window proposal.
Report to be submitted for the next HRA meeting. Mr. Ellison
agreed with Mr. Larson. Mr. St. Hilaire expressed handling of
this proposal was most unfortunate; however, things like this
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HRA MINUTES
AUGUST 19, 1993
can happen. Mayor Maus expressed the IDC I S concerns and
suggestion that the HRA consider looking around for a new
financial consultant.
5. OTHER BUSINESS.
Based on the fact the City has received bids for soil testing
and cleanup of the Gille property at an estimated total of
$20,000, Administrator Wolfsteller asked, "Is the HRA
interested in the property before it goes to public auction?".
The property would be ready for deve.lopment. Mayor Maus
guessed that the purchase price might be $60,000 as Maxwell
Appraisal appraised the property at $75,000 several years ago.
The City expects state reimbursement of the $20,000.
Mr. St. Hilaire questioned why the City was taking the lead
instead of a developer/private party. Mayor Maus felt the
HRA's position should be pro-active as partner and consider
the establishment of a Redevelopment District for development
of up-scale apartments. The HRA was not interested in
purchasing the Gille property; however, remains open to
working with an interested developer.
6. ADJOORNMENT.
Everette Ellison made a motion to adjourn the HRA meeting.
Seconded by Tom St. Hilaire, the meeting adjourned at 8:30
p.m.
~ ~d).~~
Ollie Koropchak, HRA Executive Director
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