HRA Minutes 04-15-1998
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MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, April 15, 1998 - 7:00 p.m.
City Hall
MEMBERS PRESENT:
Chair Steve Andrews, Vice Chair Bob Murray, Brad Barger, Darrin
Lahr, and Dan Frie.
CITY COUNCIL LIAISON ABSENT:
Brian Stumpf
STAFF PRESENT: Rick Wolfsteller and Ollie Koropchak.
1. Call to Order.
Chair Andrews called the special BRA meeting to order at 7:00 p.m.
2. Consideration to approve the January 7, 1998 and April 1, 1998 BRA minutes.
Tabled.
3.
Consideration of adding agenda items.
With all members present at the special meeting, Koropchak added three items to the
agenda: a) Potential housing district. b) Hawkins house demolition. c) Golf outing.
4. Consideration to determine level ofTIF assistance and to authorize preparation of Project
II within TIF District No. 1-22.
Koropchak informed BRA members of a voice mail message from Greg Hayes,
Shingobee, Inc., withdrawing from the agenda and apologizing for the short notice.
Following a meeting within Shingobee the previous evening, the company elected to
withdraw the proposed project from the HRA agenda for a couple of reasons and
expressed the need for approval of the requested $150,000 up-front TIF assistance.
Koropchak attempted to contact Hayes to encourage attendance giving HRA members the
opportunity to consider action for TIF assistance. Koropchak was unable to directly
connect with Hayes.
Bruce Hamond, a property owner at 232 West Broadway, informed commissioners of his
planned improvements to his building and orhis conversations with Hayes for a future
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BRA MINUTES
APRIL 15, 1998
parking/driveway circulation system. As a property owner and neighbor, Hamond was
supportive of the proposed Shingobee project for the following reasons: a terrific addition
to West Broadway, long-term impact, project costs not overstated but not understated,
and the gas station is not going anywhere. Hamond asked the following questions: Does
Monticello want to work with Shingobee? Is this project a catalyst for future
redevelopment of downtown? Perhaps the square foot lease may be excessive?
HRA members agreed to keep the communication lines open. Lahr questioned: How
many years, ten or twenty, before the taxing jurisdictions reap the benefit of new taxes?
What about the next developer and its cost? Frie expressed perhaps a larger project
utilizing a greater amount ofland would reduce the gap. Murray questioned: What's the
likelihood of a combination up-front and pay-as-you-go assistance? Koropchak indicated
a number of funding combinations or options are available.
Koropchak will continue the attempt to reach Hayes for additional information as to the
withdrawal of the project and to encourage continuation of working with the BRA.
5.
Consideration to discuss visit to Diversifoam Products and interest to assist with TIF.
Commissioners Lahr and Murray and IDC members Doty and Maus visited Diversifoam in
Rockford on Tuesday. Murray noted two strengths of the company: excellence
management and growth company. The privately held company is computerized,
exercises quality control, recycles waste, and the air emission permit is issued on a per site
basis. Lahr informed members Diversifoam manufactures two types of foam products.
The products consume space not weight therefore the need for storage both inside and
outside. With the management jobs to remain in Rockford, Lahr had concern with the
unskilled wages projected for Monticello and the amount of required outdoor storage.
What does Diversifoam bring to the community?
If the city-owned parcel in the township is zoned commercial, the company's second
choice is the parcel to the west which is proposed for industrial use in the south and west
corridor amendment. A utility feasibility study has been ordered by Council with the
anticipated completion May 11. The Planning Commission will consider amending the
Comprehensive Plan to include the south and west corridor on May 5. Perhaps,
Diversifoam could serve as an archer for development of the south and west industrial
area and the TIF could be used for development of the infrastructure mentioned Lahr.
The IDC will discuss Diversifoam in the morning.
Three members expressed no interest to provide assistance and two expressed interest.
After further discussion, Damn Labr made a motion that yes, the lIRA has preliminary
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BRA MINUTES
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interest in utilizing TIF. Bob Murray seconded the motion and with no further discussion,
the motion passed unanimously. The motion keeps options open.
6. eonsideration of update and required action on level ofTIF assistance for TIP District
No. 1-23.
With no estimated costs for the site improvements, no action was required.
7. Consideration to ratHy the executed Subordination Agreement between the lIRA BBF
Properties. Inc.. and US Bank.
Koropchak outlined the changes within the enclosed, executed Subordination Agreement
as prepared and negotiated by lIRA Attorney Bubul. Bubul suggested the HRA ratifY the
executed agreement. Bob Murray made a motion ratifYing the execution of the
Subordination Agreement between the HRA, BBF Properties, Inc., and US Bank. Brad
Barger seconded the motion and with no further discussion, the motion passed
unanimously.
8.
Consideration of an update of "Green Acres" bill.
No action was necessary relating to the "Green Acres" bill, informational only.
9.
Consideration of interest to sell the HRA lot located on West Broadway and disposition
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HRA members were informed that the acquisition price of the parcel was $50,000 (raw
land) and the appraised value was $37,700. The commissioners agreed that the HRA was
interested in selling~ however, they requested a proposal for development of the parcel or
parcel plus adjoining parcels. No disposition price was discussed.
10. Other Business.
a)
Housing District - HRA members were asked of their interest to provide TIP
assistance for a senior housing project associated with the development of the St.
Henry's campus. The concept would be the same as Mississippi Shores. Mr.
Allan Black who marketed Mississippi Shores is part of the team for development
of the housing within the church campus. Koropchak received a telephone call
from Mr. Black yesterday requesting an interest in the use of TIP and will be
meeting with city staff next week explaining the proposed development project.
Subject to the Housing District meeting the requirements of a "Qualified Housing
District" and noting the need for more information, HRA members agreed and
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expressed an interest in project. Bruce Hamond indicated the Hospital District
was aware of the proposed project. Perhaps Mississippi Shores and the proposed
senior housing project could share provided health care services.
b) Hawkins House - Closing set for May 1. It is understood the Fire Department has
expressed an interest to utilize the property for a controlled bum or drill.
c) Golf Outing - Koropchak informed BRA members that the Chamber Golf Outing
on June 10 is a fundraiser for the Chamber. BRA members requested a list of
potential invites as guest of the HRA/City. List available for the May meeting.
The purpose of the invites is to market the City of Monticello for development.
11. Adjournment
The HRA meeting adjourned at 8:25 p.m.
HRA~\J~
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BRA Executive Director
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