HRA Minutes 03-04-1998
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MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, March 4,1998 -7:00 p.m.
City Hall
MEMBERS PRESENT:
Chair Brad Barger, Vice Chair Steve Andrews, Darrin Lahr, and
Bob Murray.
MEMBER ABSENT:
Dan Frie.
ST AFF:
Jeff O'Neill and Ollie Koropchak.
COUNCIL LIAISON PRESENT: Brian Stumpf
GUESTS:
Ron Ankey, AKA, Inc.
Dan Greensweig, Kennedy & Graven.
Greg Hayes, Shingobee, Inc.
1. Call to ordet.
Chair Barger called the HRA meeting to order at 7:00 p.m.
2.
Consideration to approve the January 7, February 4, February 11, and February 25, 1998
BRA minutes.
Steve Andrews made a motion to approve the February 25, 1998 HRA minutes. Bob
Murray seconded the motion and with no corrections or additions, the minutes were
approved as written.
Brad Barger made a motion to table approval ofthe January 7, February 4, and February
11, 1998 HRA minutes. Darrin Lahr seconded the motion and with no further discussion,
the motion passed unanimously. Minutes were not submitted.
3. Consideration of adding 8,ienda items.
Koropchak requested adding one item to the agenda under Other Business: 8a. Update of
eminent domain proceedings resolution for K-Mart parcel. Bob Murray requested adding
one item to the agenda under 8b. Clarification of certified real estate value and assessed
value within Private Redevelopment Contract between BRA and RDI.
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HRA MINUTES
MARCH 4, 1998
4. Consideration ofreqJ,lest by City Council relating to the design and financing oftbe
NG/Community Center and consideration of action if necessary.
HRA membe~were asked to consider concept approval for funding the NG/Community
Center and to adopt of resolution of official intent to reimburse expenditures for the
armory project. HRA members received a copy of the project costs and projected tax.
impact for the full project using lease revenue bonds with and without $500,000 cuts.
Based on the small group's efforts to cut the project costs by $500,000 and to reduce the
total amount to levy through annual contributions from the Liquor Funds and TIP funds,
the City Council approved funding the full project ($9.4 million NG/community
center/aquatic center) through lease revenue bonds with the $500,000 cuts, an annual
contribution of $200,000 from the Liquor Fund, and an annual contribution from TIF.
The tax. impact was narrowed to a point where Council passed the motion on a 3-2 vote.
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The $500,000 reductions was project cost cuts, not contingency cuts. AKA informed
HRA members if given a budget, they stick within the budget. The greatest variables are
the bidding market and interest rates. The project materials within the bid were not
Cadillac and not low budget but middle of the road. For instance, not concrete floors,
some carpet but not cory tile. O'Neill's concern was the potential increase in land values.
The budget included land purchase as is~ however, dollars were in the budget for site
rehab. Lahr suggested for the long term benefit, the use oflow maintenance materials.
BRA small group representatives Barger and Andrews recommended 20/30% of the HRA
tax. increment from redevelopment of the mall be used to reduce the levy amount as a
gesture of good faith (commit funds) as well as to issue debt (issue bonds). Attorney
Greensweig informed BRA members if they commit TIF revenues to a social/recreational
facility, the HRA will need to be a party to the Operational Procedure Agreement.
Steve Andrews made a motion to use lease revenue bonds for the full project (National
Guard/core facility/aquatic center) consistent with the City Council approval and
committed 25% ($11,250) of the BRA's annual tax increment from redevelopment of the
mall toward the community center project. Bob Murray seconded the motion and with no
further discussion, the motion passed 3-1. Yeas: Andrews, Murray, and Barger. Nays:
Lahr. Absent: Frie. Lahr voted against the motion stating the cost of the project was to
high to not allow the taxpayer a vote. Barger expressed a change in vote because of the
reduced project costs and annual contributions from other local funds.
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HRA members were asked to adopt a resolution of official intent to reimburse
expenditures for the armory project. With the adoption of the resolution, expenditures
from and after said date will qualify for reimbursement from the proceeds of the lease
revenue bond. Damn Lahr made a motion to adopt the resolution of official intent to
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HRA MINUTES
MARCH 4, 1998
reimburse expenditures for the armory project at a project maximum principal amount of
$9.4 million. Bob Murray seconded the motion and with no further discussion, the motion
passed unanimously.
5.
Consideration of preliminary concept approval for proposed redevelopment proiect No.I1
within TIF District No. 1-22 and agreeing to the use ofTIF.
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HRA members received a copy ofTIF cashflows for a proposed 4,000 sq ft print and
6,000 sq ft print professional building. Because ofthe expense to develop, Greg Hayes,
Shingobee, Inc., was looking to the HRA for a response of support to the idea and site of
the proposed redevelopment project. The project consist of acquisition of the parcel,
demolition of the unused, substandard gas station, and removal of three gasoline tanks and
one oil tank for construction of a two-story professional building. Mr. Hayes informed
HRA members that he is negotiating with two potential tenants and others as well as the
property owner. The proposed two-story structure would encourage centralized parking,
consist of zero lot-lines, and complement the design standards of the CCD. The city policy
for parking is pay a fee or develop parking. Hayes is confident in working out issues with
the city, tenants, and neighbors. HRA members were in agreement and liked the idea and
site of the proposed redevelopment project for Lots 13, 14, & 15, Block 36, City of
Monticello.
Working as an agent, John Sandberg, informed HRA members he was working on two
potential different redevelopment project options for the same area including the gas
station parcel. He is not the owner and his involvement consist of securing the parcels.
The redevelopment projects are larger in scale than Mr. Hayes' project and involve four
property owners. One project is the development of a mortuary and the other is a senior
housing project. Mr. Sandberg states he has been working on this for three months and
brings this before the HRA as informational and to inform them that yes, there are others
interested in redevelopment of the area. O'Neill indicated the downtown Broadway is
intended for small retail, service, eating, or two-story facilities anq he felt the Planning
Commission would not see a senior housing project as a fit. Mr. Sandberg suggested a
swap between City, HRA, and Grimsmo relating to the said site and the proposed
community center and existing city hall sites. HRA members suggested Mr. Sandberg
keep his options open and to work with O'Neill to see how his concepts fit with the
Comprehensive Plan. Developers were informed that the next HRA meeting is April 1,
1998, 7:00 p.m.
6.
Consideration to authorize payment ofHRA monthly bills.
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Brad Barger made a motion authorizing paymentofthe HRA monthly bills as submitted
and stated. Bob Murray seconded the motion and with no further discussion, the motion
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HRA MINUTES
MARCH 4, 1998
passed unanimously.
7. Consideration of Executive Director's report.
Koropchak reiterated the content ofthe report. Some HRA members did not recall if it
were the intent of the lIRA to demolish the 225 West River Street structure. Liaison
Stumpf indicated renting was not the best option, demolish or a controlled bum would be
better. Other items on the report were accepted.
8.
Other Business.
a) Update on the eminent domain proceedings for the K-Mart parcel- Koropchak
informed HRA members that upon further review of the legal documents by Attorney
Brad Larson, the Reciprocal Easement Agreement between K-Mart Corporate, owners of
the K-Mart property, and the existing mall owners also included the mortgage company
(ies) and therefore the need to remove their condemned interests. Based on Attorney
Bubul's recommendation, Chair Barger and Executive Director Koropchak made an
executive decision and authorized amending the resolution authorizing eminent domain
proceedings to acquire certain real property interest. The amendment to include the
mortgage company (ies). Steve Andrews made a motion ratifying the executive decision
made by Barger and Koropchak. Damn Lahr seconded the motion and with no further
discussion, the motion passed unanimously.
b) Private Redevelopment Contract between HRA and RDI - Bob Murray requested the
HRA discuss and clarify the difference between the estimated certified real estate value
and the assessed value for single and twin homes developed in the River Mill Addition.
The TIF Soils District reimbursement is scheduled to begin in August 1998.
9. A<ljoumment.
Chair
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Ollie Koropchak, Executive Director
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