HRA Minutes 11-06-1996
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MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, November 6, 1996 - 7:00 p.m.
City Hall
MEMBERS PRESENT:
Chairperson AI Larson, Tom St. Hilaire, Roger Carlson, and Steve
Andrews.
MEMBER ABSENT:
Vice President Brad Barger.
STAFF PRESENT:
Ollie Koropchak.
STAFF ABSENT:
Rick Wolfsteller and letTO'Neill.
1. CALL TO ORDER.
Chairperson Larson called the HRA meeting to order at 7:00 p.m.
2.
CONSIDERATION TO APPROVE THE OCTOBER 2, 1996 HRA MINUTES.
AI Larson made a motion to approve the October 2, 1996 HRA minutes. Roger Carlson
seconded the motion and with no additions or corrections, the minutes were approved as
written.
3.
CONSIDERATION TO ADOPT THE RESOLUTION MODIFYING THE
REDEVELOPMENT PLANS FOR CENTRAL MONTICELLO REDEVELOPMENT
PROJECT NO.1 AND ESTABLISHING TIF DISTRICT NO. 1-21 AND APPROVING
AND ADOPTING THE MODIFIED CENTRAL MONTICELLO REDEVELOPMENT
PLAN AND TIF PLAN RELATING THERETO, LOCATED WITHIN CENTRAL
MONTICELLO REDEVELOPMENT PROJECT NO.1.
Having received evidence that the project would not occur solely through private
investment and fmding the project would create jobs, increase the tax base, and prevent a
business from locating elsewhere, AI Larson made a motion to adopt the resolution
modifying the Redevelopment Plans for Central Monticello Redevelopment Project NO.1
and establishing TIF District No. 1-21 and approving and adopting the modified Central
Monticello Redevelopment Plan an TIF Plan relating thereto, located within Central
Monticello Redevelopment Project No.1. Steve Andrews seconded the motion and with
no further discussion, the motion passed unanimously. TfF District No. 1-21, an
Economic District, is established for T.J. Martin, Inc. Five jobs are being created at a
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BRA MINUTES
NOVEMBER 6, 1996
minimum wage of $40,000 per job annually, the EMV is $270,000 and the Estimated
CCV is $10,190 annually for the 9,000 sq ft metal office/manufacturing facility. The frrst
year to collect tax increment is 1999 and the TIF budget is $110,000. The $110,000
budget allows the HRA the ability to collect the tax increment upon expansion ofthe
project without the need to modify the budget or plan. The HRA agreed to make the 10%
local contribution from the HRA levy (non-restrictive dollars) thereby preventing the
HACA Penalty to the City.
4.
CONSIDERATION TO APPROVE THE PRIVATE DEVELOPMENT CONTRACT
BETWEEN THE HRA AND T.J. MARTIN, INC.
Koropchak reiterated the terms and conditions of the Private Development Contract as
outlined in the agenda supplement. The developer to receive up-front TIF assistance in
the amount of$29,098 for land acquisition and $8,802 for site improvements. The HRA
shall pay the $37,900 from surplus tax increment upon completion ofthe minimum
improvements. 90% from available tax increment and 10% from the General Fund. The
HRA shall be reimbursed at an 8.25% per annum. Tom St. Hilaire made a motion to
approve entering into the Private Redevelopment Contract by and between the HRA and
T.J. Martin, Inc. and authorized the Chairperson and Executive Director ofthe HRA to
execute the contract on behalf ofthe HRA subject to minor modifications as approved by
the HRA Attorney. Al Larson seconded the motion and with no further discussion, the
motion passed unanimously.
CONSIDERATION TO DETERMINE REDEVELOPMENT PLANS FOR 525 EAST
BROADWAY,
HRA members agreed to pursue efforts for restoration or redevelopment of the property
located at 525 East Broadway. With Mark Ruff scheduled to make a presentation on
housing redevelopment programs at the December HRA meeting, the commissioners gave
no specific direction other than to encourage the City to contact the owner (Clifford
Olson) for permission to enter the property for an assessment ofthe structure for
compliance of building codes.
CONSIDERATION OF PROJECT UPDATES'
a) BRA members were invited to the MCP meeting with developers scheduled for
Thursday, November 14, 1996,9:30 a.m. Koropchak to post a public meeting
notice.
b) BRA members were invite to the MCP Workshop III on Tuesday, November 19,
7:00 p.m., High School Board Room.
e) HRA members acknowledged receipt of the letter and commended the HRA
Chairperson and Executive Director on negotiating a settlement relating to the TI
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HRA MINUTES
NOVEMBER 6, 1996
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shortfall for TIF District Nos. 1-1 anll-4.
Koropchak updated HRA members as to the potential redevelopment of the mall.
Brad Johnson of Lotus Realty had been in discussion with the local grocer to
establish a lease agreement as the anchor in the proposed redevelopment ofthe
mall. It has been strongly noted by the local grocer that the redevelopment of the
mall should be based on the need for a large anchor, not a specific business. As
stated by Mr. Johnson, the decision to establish a Redevelopment District should
be based on the community fmding that a project fits the community or is what the
community wants. Mark Ruff, Publicorp, agreed and also noted the redeveloper
must make findings that the existing mall meets the substandard test for
establishment of a Redevelopment District. The local grocer has elected not to
expand at this time. Expansion is two to three years premature, not an
economically sound decision based on their expansion of one to two years ago.
Additionally, was the concern to lease out the existing space. The local grocer
recognizes this could open the door for competition. Tn conversation with Brad
Johnson, he is proceeding to discuss options with two other anchors. Koropchak
reminded HRA members that the TTF District established in I 990 by the City for
Lincoln Properties was an Economic District. An Economic District must create
jobs, increase the tax base, and discourage a business from locating elsewhere.
Lincoln Properties leases to K-Mart which today employs 130 people and the TIF
assistance was used for public improvements. Because the TIP laws have changed,
today, an Economic District is used primarily for manufacturing,
warehouse/storage, and office space relating to manufacturing.
No bills were presented for approval.
Commissioner Roger Carlson submitted a letter of resignation to the HRA
effective December 15, 1996. Carlson resigns from the HRA as he was elected to
serve on the City Council. Al Larson made a motion to accept the letter of
resignation from Mr. Carlson and authorized advertising for a replacement. Tom
St. Hilaire seconded the motion and with no further discussion, the motion passed
unanimously.
The following was a list of names for potential membership: Bruce Medlock, Mike
Drayna, Dr. John Erlandson, Ellen Fischbach, Kathy Swienhart, Dan Olson, Scott
Douglas, Dave Peterson, Steve Johnson, Brad Becker, Ron Peterson, Wayne
Hoglund, and Eric Bondhus.
HRA members received a copy of Mark Ruff's letter of October 25, 1996.
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HRA MINUTES
NOVEMBER 6, 1996
7. ADJOURNMENT.
The HRA meeting adjourned at 7:30 p.m.
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Ollie Koropchak, Executive Director
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