HRA Minutes 02-25-1998
.
.
.
MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, February 25, 1998 - 4:30 p.m.
City Hall
MEMBERS PRESENT:
Chair Brad Barger, Vice Chair Steve Andrews, Bob Murray, and
Dan Frie.
MEMBERS ABSENT:
Darrin Lahr.
COUNCIL LIAISON ABSENT:
Brian Stumpf
ST AFF PRESENT: Ollie Koropchak.
STAFF ABSENT: Rick Wolfsteller and Jeff O'Neill.
GUESTS:
Barry Fluth, BBF, Inc. and Brad Larson, Attorney
1. Call to Order.
Chair Barger called the special HRA meeting to order at 4:40 p.m.
2.
Consideration to adopt a resolution approving an amendment to the Contract for Private
Redevelopment between the HRA and BBF, Inc.
Bob Murray made a motion to adopt a resolution approving an amendment to the
Contract for Private Redevelopment between the HRA and BBF, Inc. Steve Andrews
seconded the motion. With no exposure or liability to the HRA or further discussion, the
motion passed unanimously.
The said resolution authorizes staff and legal counsel to prepare and amend the Contract,
authorizes the developer to escrow $3,000 for commencement of the process, and wherein
the developer agrees to pay the total costs of acquisition of condemned interests and to
hold harmless, defend and indemnify the HRA for all claims relating to the acquisition of
condemned interests.
3. Consideration to adopt a resolution authorizing eminent domain proceedings to acquire
certain real property interests.
Attorney Brad Larson informed HRA members that the mall and K-Mart parcels at one
time were controtled by the same party, Lincoln Properties. A Declaration of Reciprocal
Easements was filed of record against the property described as Lot 2, Block 1 and Outlot
C, Kirkman Addition. Certain provisions ofthe Declaration restrict Fluth "the developer"
1
.
.
.
HRA MINUTES
FEBRUARY 25, 1998
to carry out redevelopment of the mall. Such provisions relate to the mall walkway and
the K-Martllandlord lease. As long as the lease is in effect, no building or other structures
shall be constructed upon the mall parcel other than those currently constructed and/or
contemplated by the Lease. The Lease is a 25-year lease which was executed in the early
nineties.
No economic damages are slated to occur with redevelopment of the mall. K-Mart
Corporate has consented to remove the condemned interests and welcomes the potential
of increased sales resulting from the redevelopment of the mall and the proposed new
tenant "Cub Foods". However, Mr. Fluth has been unable to reach an agreement to
remove the condemned interests with the landlord ofthe K-Mart building. An economic
gain for the landlord is anticipated as the Lease Agreement with K-Mart indicates rent will
increase once K-Mart reaches a certain threshold of annual gross sales. This certain
threshold is anticipated to be reached with the draw of the proposed "Cub Foods". HRA
Attorney Bubul concurs.
In order to allow the developer to proceed with redevelopment of the mall in a timely
manner and with no exposure or liability to the HRA, Steve Andrews made a motion to
adopt a resolution authorizing eminent domain proceedings to acquire certain real
property interests. Bob Murray seconded the motion and with no further discussion, the
motion passed unanimously. The procedure is through a 90-day quick take.
4.
Acljournment.
Dan Frie made a motion to adjourn the special HRA meeting. Seconded by Bob Murray
the meeting adjourned at 5:00 p.rn.
~ ..
. ,'"
B d Barger, Chair ~
Q~ \<f1\~~
Ollie Koropchak, Executive Director
2