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HRA Minutes 08-11-1999 . , . MINUTES MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY Wednesday, August 11, 1999 - 7:00 p.m. City Hall Members Present: Chair Bob Murray, Steve Andrews, Dan Frie and Council Liaison Brian Stumpf. Absent: Brad Barger ffild Darrin Lahr Staff Present: Executive Director Ollie Koropchak and Recorder Lori Kraemer. 1. Call to Order. Chair Bob Murray called the HRA meeting to order at 7:00 p.m. 2. Consideration to approve the July 28. 1999 HRA minutes. A MOTION WAS MADE BY STEVE ANDREWS AND SECONDED BY DAN FRIE TO APPROVE THE MINUTES, AS WRITTEN, OF THE HRA MEETING ON JULY 28, 1999. Motion carried unanimously. 3. Consideration of adding agenda items. Ollie Koropchak asked to discuss the property at 1 Locust Street. This was placed under Other Business. 4. Consent AQ:enda: There were no items on the consent agenda. 5. Consideration of items removed from the consent agenda for discussion. N/A. 6. Consideration to review the Business Subsidy Criteria Exmnple for development of Monticello criteria and setting a public hearing date. Ollie Koropchak presented drafts ofthe Business Subsidy Criteria to the members for their review. According to the July 12 memo from Mark Ruff, a business subsidy cannot be granted until a grantor has adopted criteria for awarding a subsidy. A public hearing must be held prior to adoption of the criteria. This new requirement becmne effective 1 . , . August I, 1999. This criteria does not pertain to business subsidies of less than $25,000. These public hearings are held by the HRA, EDA and City Council. Ollie also noted that the HRA can not lend money to businesses until this is adopted. The membcrs thought this criteria would bc a nice tool to provide to manufacturers who are seeking assistance from the HRA. The subsidy agrccmcnt only requires a little modification to our existing Private Redevelopment Contracts and Attorney Bubul will cover those items. However, the Council will necd to approve the Redevelopment Agreement which means assistancc levels offered to developers must be in agreement betwccn dcvcloper, HRA, and Council prior to preparation of documents or to a commitmcnt of Monticello as their site location. After this criteria is adopted, a public hearing would be held for any business subsidy requesting assistance in excess of $1 00,000. The guarantor, being the one loaning the money, would hold the public hearing. Attorney Steve Bubul reviewed the business subsidy criteria and pointed out the importance of the HRA members understanding of the information listed in items 5C and 5D regarding minimum wages. It was noted that item 5C applies to green acres. This item states that at least 90% of the jobs created must pay a wage of a least 160% of the federal minimum wage requirement for individuals over the age of20, or $8.24 per hour today. The process of these agreements was eXplained by Ollie Koropchak. The HRA would first review the applications and then send them to the City Council. If there is no opposition by the City Council, it proceeds. Ollie Koropchak will make the appropriate changes to the draft as directed by the HRA members and this item will be placed on the next agenda which will call for the public hearing to be held September 8, 1999. A MOTION WAS MADE BY DAN FRIE AND SECONDED BY STEVE ANDREWS TO CALL FOR A PUBLIC HEARING DATE OF SEPTEMBER 8, 1999, FOR ESTABLISHMENT OF THE HRA BUSINESS SUBSIDY CRITERIA. Motion carried unanimously. 7. Consideration to authorize payment of monthly HRA bills. 8. A MOTION WAS MADE BY STEVE ANDREWS AND SECONDED BY DAN FRIE TO AUTHORIZE PAYMENT OF THE MONTHLY HRA BILLS. Motion carried. Consideration of Executive Director's Report. Ollie Koropchak provided the report on TIF Authority and Municipal Reports and annual disclosure statement providing a copy of the Council agenda item which submits the 2 , Authority Rcport to the Council and informs them of completion and submission of reports on a ti mcly fashion. A copy of the entire report was avai lable to thc HRA members. Also provided were copics ofthc reimbursement checks for the pay-as-you-go 'fIF district. TIF districts No. 1-15 (Custom Canopy) and No. 1-21 (T.J. Martin, Inc.) did not collect taxes. A lettcr to T.J. Martin relating to the delinquent taxes and deficiency per the Contract was reviewed by Attorney Bubul prior to mailing. There has been no response as of this time. This was up-front assistancc in the amount of$37,900. A letter was also addressed to T.J. Martin, Inc. for non-payment of the EOA loan payback for the past three months. No letter was issued to Custom Canopy as this is a pay-as-you-go assistance which is paid annually in December per the Contract. No tax increment, no reimbursement. , Regarding Allied Companies, Ollie Koropchak provided the new TIF revenue runs after talking with the County Assessor relating to the estimated market value beginning payable 200 I which will be the value in the Assessment Agreement. With the Available Tax Increment at 80%, the loan at 7% is estimated to be paid back in the year 2005 which is prior to the termination date. Also attached was the breakdown of number of jobs and wage ranges. Ollie stated she has received copies of Lieu Waivers for the site improvements; however, she has not had time to review them. Attorney Bubul prepared amendments to the Private Redevelopment Contract for execution by the HRA. The City Council approved the loan to the HRA on August 9th. Regarding the Grassl 7-foot walkway, Bill Grassl contacted Ollie and stated that he did not know ifhe was going to be a willing buyer, as he's not so sure it will be a benefit to him to have this walkway. The item was removed from the Council agenda of August 9th. Ollie Koropchak provided a copy of the letter mailed to Twin City Die Casting Company and informed the members that site selection will be the week of August 16. Monticello, Big Lake and Buffalo are in the running. It appears that the most desired spot available in Monticello is an easterly 6 acre site on the south side of Chelsea Road. Ollie also provided a copy to the City Council so both government entities are aware of the financial assistance. Ollie stated she contacted a company who was looking for 20 acres of freeway exposure property for a 230,000 sq. ft. building and informed them the property lying north of Chelsea Road is not on the market. . Wright County Commissioners approved the reconveyance of Outlot A, Country Club Manor to the State this week with the State expected to reconvey the parcel to the HRA in 3 . , . the near future. This is in process. Ollie Koropchak also advised the members that she received a copy of a Housing Study from the City of Brooklyn Park. She has also received a Senior Housing Study completed in January 1992 by Maxfield Research, a Multifamily Housing Study completed in January 1994 by Maxfield Research, and Residential Development Market Overview completed in April 1997 by Conhaim Associates. Brooklyn Park's study was available for the members to review. The HRA budget for 2000 was submitted to City Administrator Rick Wolfsteller, however, no meetings between staff and council have been held at this time. This will be included when the City Council hears the budgct requests. Ollie stated she has received $100 of the $550 August rent from Tammy and expects to see the remaining balance within days. At this time we have not received this money. 9. Consideration of Committee reports: a) Brian Stumpf provided the City Council report stating the Council approved the loan for Midwest Graphics. b) Bob Murray provided the community center report stating they had met last week and everything is still on track with a few minor details. A draft of the Policy Manual was also provided to the small group and looks in order. c) Steve Andrews provided the MCP report noting they hired a new executive director who will be starting the end of September. d) Bob Murray and Dan Frie provided the North Anchor report noting there was a public information meeting held on August 3rd with Darrin Lahr giving the presentation. Comments from this meeting will be brought to the City Council on August 23rd. A request from the property owners was to advise them when this will be put on the Couneil agenda. The also recommend the City Council not go out for proposals at this time. 10. Other Business. Ollie Koropchak stated she received a call from the owner ofthe property at 1 Locust Street stating her desire to possibly sell this rental property. This property is located in the "green area" of the North Anchor map which is the 25 year, long term area. She was told that the City was looking at purchasing property in this area. Ollie also noted that people from the information meeting were concerned with this corner house. Ollie wanted to see if the HRA and/or City had any interest in purchasing this property. This 4 . , . particular property probably does not tit with the North Anchor plan at this time, but it does fit the blight issue. HRA does not want to face relocation costs or jump into anything too quickly. The thought by thc lIRA is to put this item on thc ncxt agenda. Ollie stated shc will do an information item to the City Council as well to get their input. Ollie will also let the property owner know that the HRA will formally addrcss this at its September 8 meeting. Ollie reported, via Brad Barger, to consider amending their by-laws to go back to meeting on the first Wednesday of the month starting in October. This will be on the September agenda. 11. Adjournment. DAN FRIE MOVED AND STEVE ANDREWS SECONDED A MOTION TO ADJOURN THE MEETING AT 8:20 p.m. Motion carried. p--:~~ V'L~ ~;, Chair, Bob Murray o 5