HRA Minutes 10-05-1994
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MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, October 5, 1994 - 7:00 p.m.
City Hall
MEMBERS PRESENT:
Chairperson Al Larson, Vice Chairperson Ben
Smith, Everette Ellison, Tom St. Hilaire, and
Brad Barger.
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 7:00
p.m.
2. CONSIDERATION TO APPROVE THE SEPTEMBER 7, 1994 BRA MINUTES.
Ben Smith made a motion to approve the September 7, 1994 HRA
minutes. Seconded by Brad Barger and with no corrections or
additions, the minutes were approved as written.
3.
CONSIDERATION TO ADOPT A RESOLUTION AUTHORIZING PUBLIC
RESOURCE GROUP, INC. TO BEGIN PREPARATION FOR THE MODIFICATION
OF REDEVELOPMENT PROJECT NO. 1 BOUNDARIES AND PLAN, AND FOR
THE ESTABLISHMENT OF A TIF PLAN FOR TIF DISTRICT NO. 1-18.
HRA members reported they have been confronted by numerous
individuals who disfavored the HRA and Council's preliminary
concept approval for the use of TIF assistance to eliminate
the unsafe and hazardous mined-gravel pit.
Having received the executed TIF Preliminary Agreement, a
$5,000 cashier's check, and a copy of the land purchase
agreement from the redeveloper, Tom St. Hilaire made a motion
to adopt the resolution authorizing Public Resource Group, to
begin preparation for the modification of the Redevelopment
Project No. 1 boundaries and plan, and for the establishment
of the TIF Plan for TIF District No. 1-"18. Everette Ellison
second the motion and with no further discussion, the motion
passed 4 to 1. Yeas: Tom St. Hilaire, Everette Ellison, Ben
Smi th, and Brad Barger. Nay: Al Larson. Again, the HRA
adopted the resolution as they viewed the $102,000 TIF
assistance for elimination of the unsafe and hazardous mined-
gravel pit as a long-term investment for the betterment of the
City of Monticello and its future.
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HRA MINUTES
OCTOBER 5, 1994
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CONSIDERATION TO DISCUSS
CHAIRPERSON LARSON FROM
RESPONDING.
LETTER ADDRESSED
BIRKELAND, JR.
HRA
TO
TO
PRIOR
THE
STEVE
Chairperson Larson requested Steve Birkeland's letter and Jeff
O'Neill's response be discussed by HRA members prior to any
action. Chairperson Larson suggested that in-fairness to the
three individuals: Birkeland, O'Neill, and Anderson, the HRA
consider inviting them to the November meeting to hear first-
hand of the discrepancies.
Some HRA members fel tit was not the role of the HRA to
monitor discrepancies between city staff and developers.
However, they felt the HRA could review the developed project
for compliance of the screening requirements and thereafter
reconsider the denial of TIF pay-as-you-go assistance.
A general agreement among HRA members was to extend an
invi tation to the three individuals to the November HRA
meeting for further discussion, only, if all three individuals
were in attendance.
5.
CONSIDERATION TO REVIEW THE LETTER WRITTEN TO THE H-WINDOW
COMPANY AS IT RELATES TO THE CERTIFICATE OF COMPLETION.
HRA members agreed that if the minimum improvements are 90%
complete by the end of December, 1994, the Certificate of
Completion should be issued. An occupancy permit was issued
for the 25,600 sq ft manufacturing expansion but not issued
for the 4,000 sq ft second-floor office area. However, the
approved TIF pay-as-you-go assistance to begin in August of
1995 will not be paid until certification by the project
engineer or other project supervisor showing in adequate
detail that the public (site) improvement costs have been
incurred and paid by the H-Window.
6. CONSIDERATION TO REVIEW THE LETTER RECEIVED FROM RONALD MUSICH
AS IT RELATES TO THE EXECUTED PRIVATE REDEVELOPMENT CONTRACT.
Upon the request of Mr. Musich to extend the completion date
for the minimum improvements to February-March and with
projections of sufficient tax increment to cover the HRA
indebtedness, Tom St. Hi lai re made a mot i on to extend the
construction commencement date for the minimum improvements
from October 20, 1994 to November 20 f 1994 and the
construction completion date from December 31, 1994 to May 20,
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HRA MINUTES
OCTOBER 5, 1994
1995. This within the Private Redevelopment Contract. Brad
Barger second the motion and with no further discussion, the
motion passed unanimously.
7. CONSIDERATION OF PROJECT UPDATES:
a) Genereux Fine Wood Products, Inc, - Koropchak requested
HRA members consider preliminary concept approval for
modification of the TIF Plan and Budget for TIF District
No. 1-9. Bill Tapper, Lenny Kirscht, and Koropchak met
to define financial uses and :sources for the 18,000 sq ft
manufacturing expansion and second -floor mezzanine to the
Genereux existing facility and the addition of 15 jobs.
Anticipated groundbreaking the middle of April, 1995.
Marquette Bank has given preliminary concept approval to
finance the expansion. Sources of funding for
construction and equipment include $30,000, upfront TIF
assistance (as equity); $50,000, GMEF; $340,000, Bank;
and SBA, $280,000 for a total expansion project of
$700,000. The upfront $30,000 TIF to be disbursed from
the surplus fund of prior 1990 TIF Districts. The
surplus fund to be fully reimbursed through the projected
tax increment increase from District No. 1-9. Rick
Wolfsteller had indicated available dollars in the
surplus fund. The HRA's general concensus was to proceed
with modification of the TIF District No. 1--9 budget.
b) Quality Welding - The IDC Prospect Team toured this
company in Rogers. The company has not committed to
Monticello; however, a strong consensus is for a
Monticello expansion/ location in 1995 as Mr. Johnson
resides in the Monticello area. No financial assistance
has been proposed.
C) Micro -Tech - Koropchak and Marquette Bank are working
with company officials to relocate the 14 tele -sales
personnel from St. Cloud to Monticello. Annual wages
range from $30,000 to $60,000.
d) Right -Choice Services, Inc. - This redemption company
continues to look at Monticello for possible
relocation/expansion. Spring decision anticipated. The
owner resides in the Monticello area.
e) Monticello Senior Housing Alliance - Alliance Chairperson
Larson informed HRA members that the Alliance members
unanimously voted to move ahead on the senior housing
project and authorized preparation for a 501 (c)(3) non-
profit status. Additionally, Mr. Larson said he has
received many positive inquiries and comments regarding
the senior housing project.
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HRA MINUTES
OCTOBER 5, 1994
8. OTHER BUSINESS.
a) Consideration of PRG and Holmes & Graven billings - The
HRA approved payment of the September billings for PRG
and Holmes & Graven.
b) Other - None.
9. ADJOURNMENT.
The HRA meeting adjourned at 8:00 p.m.
C]~ \<d\~9~
Ollie Koropchak, HRA Executive Director
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