HRA Minutes 06-05-1996
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MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, June 5, 1996 - 7:00 p.m.
City Hall
MEMBERS PRESENT:
Chairperson Al Larson, Vice Chairperson Brad Barger, and
Roger Carlson.
MEMBERS ABSENT:
Tom St. Hilaire.
STAFF PRESENT:
Ollie Koropchak and Jeff O'Neill.
STAFF ABSENT:
Rick Wolfsteller.
GUEST:
John Komerak, Redeveloper.
Merrlyn Seefeldt and Steve Andrews.
1. CALL TO ORDER.
Chairperson Larson called the HRA meeting to order at 7:00 p.m.
2.
CONSIDERATION TO APPROVE THE MAY I AND MAY 29. 1996 HRA
MINUTES.
HRA members requested St. Hilaire revisit the minutes of May 1 relating to his
amendment request of the April 3 HRA minutes. Al Larson made a motion to
approve the May I and May 29, 1996 HRA minutes. Seconded by Brad Barger and
with no corrections or additions, the minutes were approved as written.
CONSIDERATION TO INTERVIEW THE TWO CANDIDATES FOR THE
VACATED HRA SEAT.
The HRA members interviewed each of the two candidates independently_The
candidates had submitted resumes. Both candidates would serve the HRA and
community well and both acknowledged their need to learn the functions of the
HRA and TIF. Seefeldt a current member of the IDC and local business owner for
years described herself as a detailed person and not a visionary person. Andrews a
current member of the Parks Commission and a local residents described himself as
enthusiastic and ready to serve a more active role within the community. Andrews'
current employment does not require business travel. Koropchak informed both
candidates to the process of appointment to the HRA, stating the HRA would
recommend one individual's name for City Council appointment on June 10, 1996.
The expiration date for the term of this vacated seat is December 1997.
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HRA MINUTES
JUNE 5,1996
3. CONSIDERATION TO DISCUSS. ELECT, AND RECOMMEND TO CITY
COUNCIL A CANDIDATE TO FILL THE VACATED HRA SEAT.
Upon conclusion of the interviews, each HRA member verbally gave his
recommendation. Koropchak informed members of St. Hilaire's recommendation
for the vacated seat.
With his availability to attend a majority of the HRA meetings, Roger Carlson made
a motion recommending Steve Andrews to the City Council for appointment to the
HRA. Brad Barger seconded the motion and with no further discussion, the motion
passed unanimously.
4.
CONSIDERATION TO ADOPT A RESOLUTION MODIFYING THE
REDEVELOPMENT PLAN FOR CENTRAL MONTICELLO
REDEVELOPMENT PROJECT (CMRP) NO.1: MODIFYING THE BUDGETS
OF TIF DISTRICT NOS. 1-1 THROUGH 1-18: ESTABLISHING TIF DISTRICT
NO. 1-20 AND APPROVING THE CMRP PLAN AND TIF PLANS RELATING
THERETO.
The parcels identified in the CMRP Plan provide the HRA the flexibility to acquire
those parcels whether to be included within or outside a TIF District. The modified
budget of $2,750,000 allows the HRA flexibility to use the budget dollars for
payment of public costs. The public costs are subject to TIF restrictions and with
certain limitations. Additionally, the modified budget prevents add-on legal and
consultant expenses created each time the plan is modified. TIP District No. 1-20
established as a 25-year Redevelopment District includes the Hanawalt and Banyai
parcels and the easterly City parcel. Revenues are sufficient to cover the costs
incurred by the HRA within the District. The Prairie West Analysis determined the
project would not occur within the foreseeable future without the assistance of TIF
and the City-owned parcel.
The modified plan and budgets meet the goals and objectives of the HRA and the
TIF District meets the Statutory requirements; therefore, Al Larson made a motion
to adopt the resolution modifying the redevelopment plan for CMRP No.1;
modifying the budgets of TIF District Nos. I-I through 1-18; establishing TIF District
No. 1-20 and approving the CMRP Plan and TIF Plans relating thereto. Brad Barger
seconded the motion and with no further discussion, the motion passed unanimously.
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HRA MINUTES
JUNE 5,1996
5. CONSIDERATION TO ENTER INTO AN ASSIGNMENT AND ASSUMPTION
AGREEMENT BETWEEN THE HRA. KA TZMAREK. AND CEDRUS CREEK.
Redeveloper John Komarek informed HRA members that the results of the survey
indicated a piece of the easterly Katzmarek parcel was buildable. It appeared to
Komarek, the property to the west of Otter Creek was better suited for park land.
O'Neill felt it was too low and swampy and stated the 10% park land dedication
must be useable land. Additionally, O'Neill stated the on-site ponding must be
outside the flood plain and any ponding within the railroad ditch must be worked out
with Burlington Northern. Koropchak noted the need for the demolition and
restoration costs to include the capping of the well, removal of the septic drain, and
exploration of the parcel. Also, development of the Katzmarek parcel may require
a sanitary gravity system. The survey indicated the KatZIDarek parcel was 1.49 acres
rather than the 2.6 acres described within the city assessment files. Komarek
proposed the construction of one additional single-housing unit or an additional
$150,000 market value. The potential for development of elevated bridges was
suggested.
Koropchak informed HRA members that the assumption and assignment agreement
assigns the purchase agreement between Katzmarek and Komarek to the HRA and
acknowledges that all parties agree the $145,000 includes acquisition and relocation
costs.
Komarek preferred a no third-party sale and said the survey cost was approximately
$2,700.
All parties present agreed the No. I objective of the Katzmarek parcel was the
removal of blight. Secondly, members supported the increased tax revenue from one
additional housing unit therebye supporting the Council's recommendation to
maximize usage of the developable land. Next, the westerly .61 acres of the
Katzmarek parcel satisfies the City's 10% park land dedication requirement for the
Prairie West 2nd Addition of 4.77 acres. Lastly, development by Komarek provides
for a uniform development. Brad Barger made a motion adopting the resolution
approving the Assignment and Assumption Agreement with a first right of refusal
to John Komarek. Komarek agrees to clean-up the entire Katzmarek parcel,
construct one additional housing unit, and dedicate the westerly portion to the city
for park land. Roger Carlson seconded the motion and with no further discussion,
the motion passed unanimously.
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HRA MINUTES
JUNE 5, 1996
6. CONSIDERA TION TO AUTHORIZE EXECUTION OF THE LOAN
AGREEMENT BETWEEN THE HRA AND MCP.
With only three HRA members present and with the potential conflict of interest by
Al Larson as a member of both the HRA and the MCP, a quorum did not exist.
The item was tabled.
7 . CONSIDERATION TO ENTER INTO TWO WALL MAINTENANCE
AGREEMENTS BETWEEN THE HRA AND EACH ADJACENT OWNERS.
Koropchak informed HRA members that all parties agreed to terminate the
electrical, egress and ingress, and stairway easements. According to record, only a
Common Wall Agreement exists between Lots 6 and 7, the Bloomdahls and Fluths.
Brad Barger made a motion to enter into two separate Wall Maintenance
Agreements with adjacent owners: the Johnsons and the Bloomdahls. Al Larson
seconded the motion and with no further discussion, the motion passed unanimously.
The adjacent owners have the right to enter the property for maintaining and
repairing the boundary wall. All costs of maintenance and repair shall be born by
the adajcent owners and the HRA shall have no obligation or liability.
8.
CONSIDERATION TO APPROVE THE AMENDMENT TO THE PLEDGE
AGREEMENT FOR TIF DISTRICT NO. 1-5.
Upon the authorization of the HRA, Publicorp researched the economics of
refinancing any HRA TIF Bonds. TIF District No. 1-5 (Construction Five) appeared
to make the most economical sense to refmance. The original bond was issued in
the amount of $365,000 and was used for public and site improvements. The
principal outstanding is $130,000.
Based on a net gain between $3,000 to $5,000, Al Larson made a motion to approve
the Amendment to the Tax Increment Pledge Agreement by and between the City
of Monticello and the Housing and Redevelopment Authority in and for the City of
Monticello. Brad Barger seconded the motion and with no further discussion, the
motion passed unanimously.
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HRA MINUTES
JUNE 5,1996
9. CONSIDERATION TO REVIEW THE CERTIFICATE OF COMPLETION FOR
PRESBYTERIAN HOMES.
Although some construction items appeared not completed as referenced by the
Chief Building Official, HRA members agreed the non-completed items were
relatively minor. Additionally, members felt the Mississippi Shores project was an
asset to the City of Monticello and some felt Presbyterian Homes, the owners, had
been jerked around enough. Al Larson made a motion waiving the need for a
Certificate of Occupancy and approving the Certification of Completion within the
Private Redevelopment Contract between the HRA and Presbyterian Homes, Inc.
Brad Barger seconded the motion and with no further discussion, the motion passed
unanimously.
10. OTHER BUSINESS:
a)
b)
HRA monthly bills - Authorized payment of bills.
BRA members received a printed copy of the TIF Surplus Cash Fund, June
balance.
HRA members received a copy of a letter from Robert Fisher, District
Manager, US Postal Service, relating to the proposed 6,500 sq ft carrier route
facility planned for construction along East 7 Street.
c)
11. ADJOURNMENT.
The HRA meeting adjourned at 9:00 p.m.
()~ Y;~~cil~~
Ollie Koropchak, Executive Birector
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