HRA Minutes 07-28-1999
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MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Special Meeting
Wednesday, July 28,1999 - 7:00 p.m.
City Hall
Members Prescnt:
Chair Bob Murray, Vice Chair Darrin Lahr and Steve Andrews
Absent:
Members Brad Barger, Dan Frie and Council Liaison Brian Stumpf.
Staff Present:
Executive Director Ollie Koropchak and Recording Secretary Lori
Kraemer.
Guest:
Steve Krenz, Midwest Graphics
1. Call to Order.
Chair Bob Murray called the HRA meeting to order at 7:00 p.m.
2.
Consideration to approve the July 14. 1999 HRA minutes.
A MOTION WAS MADE BY DARRIN LAHR AND SECONDED BY BOB MURRAY
TO APPROVE THE MINUTES, AS WRITTEN, OF THE HRA MEETING OF JULY
14, 1999. Motion carried with Steve Andrews abstaining.
3.
Consideration of adding agenda items.
Ollie Koropchak asked to discuss the Grassl walkway. This was put under Other
Business.
4. Consideration to review for aporoval funding ootions as requested bv Steve Krenz.
Midwest Graphics.
Ollie Koropchak presented the staff report, providing some options for consideration
regarding the request by Steve Krenz, Midwest Graphics, for assistance of $200,000 to
$250,000, approximately one-half the estimated costs of $400,000, to move a portion of
the Midwest Graphics' Plymouth business operation to Monticello.
Ollie Koropchak spoke with Mark Houge, Allied Companies, and reviewed the criteria
for amending the contract under Option A or C. He agreed to the concept of Option A,
but requested deferring authorization to prepare document by Attorney Bubul until
confirmation with Steve Krenz..
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HRA minutes - 7/28/99
The commission members questions the avcrage pay rate statcd by Steve Krenz who
clarified that this is an avcragc and that some wages will be higher, some lowcr. TIc also
stated that the minimum pay wage would be approximatcly $11 and the maximum was
approximately $28. I-Ie cxplained that the wages would add up to $1.7 for tbe additional
40 jobs. Ollie asked Steve Krenz to complete a worksheet describing the numbcr
of positions for each pay rate range.
Thc commissioners noted that it is not thc HRA' s intention to fine tune the wages and
after somc discussion, the members were satisfied with Mr. Krenz's breakdown of jobs
and wages. Mr. Krenz also stated that the attraction to Monticello by present employees
is housing; the attraction for people already in Monticcllo is the pay rate. Steve also
stated that Midwest Graphics had exercised the five-year option to purchase thc building
from Allied Companies. Ollie also stated Rick Wolfsteller agreed to loan HRA the
money at 6.5% or 7% intercst, and the City Attorney was in agreement with this as well.
The commissioners questioned the recommendation for $100,000 versus $181,000 and
Ollie Koropchak stated this is consistent with the EDA loan fund, but it is not required.
Steve expressed the importance of the entire $181,000 consistent with the previous
agreement.
Ollie Koropchak outlined the three options for the commissioners to consider.
A MOTION WAS MADE BY BOB MURRAY AND SECONDED BY DARRIN LAHR
TO PROVIDE UP-FRONT ASSISTANCE IN THE AMOUNT OF $181 ,000 AT AN
INTEREST RATE OF 7%, SUBJECT TO RUNNING NEW REVENUE STREAMS
AND AMENDING THE PRIVATE REDEVELOPMENT CONTRACT BETWEEN
HRA AND ALLIED COMPANIES AS DEFINED. Motion carried lmanimously.
5. Otber Business.
Ollie Koropchak advised the commissioners that she and Rick Wolfsteller met with Bill
Grassl and agreed upon a price per foot on the 7' walkway. Mr. Grassl requested the
HRA extend behind County Travel (Brad Larson's) property. The per square foot
selling price is $6 for a total land price of $7,140. Ollie also stated that improvements
will need to be made including concrete pavers and lighting along the 7' easement.
Ollie Koropchak asked the commissioners of their interest to pay for these
improvements which she estimated at approximately $20,000. These improvements
could be fundcd through TIF District 1-22 revenues. Ollie also noted that this is part of
the revitalization plan for downtown as well as being part of the City's Comp Plan.
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HRA minutes - 7/28/99
The commissioners agrecd that this is preferable for the downtown area, but they feel thc
HRA funds are already committed and that thc Council wanted this 7' strip. They would
like to see the Councils action come full circle. Council recommended it, council should
pay.
A MOTION WAS MADE BY DARRIN LAHR AND SECONDED BY STEVE
ANDREWS TI--IAT DUE TO PREVIOUS FUNDING COMMITMENTS, TIlE HRA IS
NOT INTERESTED IN FUNDING THE 7 FOOT W ALKWA Y. Motion carricd
unanimously.
Other Updates:
Ollie Koropchak advised the commissioners of the Review ofTIF revenue from the
County. Custom Canopy has not paid, nor has Lake Tool. She has spoken to
Attorney Steve Bubul and will follow-up.
Twin City Die Casting still looks favorable for Monticello to be the chosen site, but there
is yet to be a commitment made. Ollie Koropchak did send a letter noting the City's
willingness to participate inTI F.
6.
Adjournment.
A MOTION WAS MADE BY DARRIN LAHR AND SECONDED BY STEVE
ANDREWS TO ADJOURN THE MEETING AT 7:50 P.M. Motion carried
unanimously.
Chair, Bob Murray
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