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HRA Minutes 01-05-2000 , . , HRA Minutes - 0 I /05/00 MINUTES MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY Wednesday, January 5,2000 - 7:00 p.m. City Hall- 505 Walnut Street - Council Chambers MEMBERS PRESENT: Chair Bob Murray, Brad Barger, Steve Andrews and Council Liaison Brian Stumpf MEMBERS ABSENT: Vice Chair Darrin Lahr and Dan Frie. OFFICERS: Treasurer Rick Wolfsteller, Executive Director Ollie Koropchak, Deputy City Administrator Jeff O'Neill and Recorder Lori Kraemer. GUESTS: Mark Ruff, Ehlers & Associates, Inc. Steve Bubul, Kennedy & Graven 1. Call to Order. Chair Murray called the meeting to order at 7:05 p.m. 2. Consideration to approve the December I, 1999 HRA Minutes. A MOTION WAS MADE BY BRAD BARGER AND SECONDED BY STEVE ANDREWS TO APPROVE THE MINUTES, AS WRITTEN, OF THE HRA MEETING ON DECEMBER 1, 1999. Motion carried. 3. Consideration of adding agenda items. None. 4. Consent Agenda. A. Consideration to recommend to City Council a commissioner for annual appointment. Ollie Koropchak suggested the HRA make a motion recommending the City Council appoint Brad Barger for a five-year HRA term, which he has agreed to, expiration date of December 2004. HRA Commissioners are appointed each year by the Mayor and City Council at the first Council meeting held in January. The five-year term seat held by Commissioner Brad Barger expires December 31, 1999. On January 10, the Mayor and Council will consider appointing commission members including Brad Barger. -1- HRA Minutes - 01/05/00 Koropchak also provided a list of the HRA commissioners' terms after Council appointment in January. A MOTION WAS MADE BY BOB MURRAY AND SECONDED BY STEVE ANDREWS TO RECOMMEND TO THE CITY COUNCIL THE APPOINTMENT OF BRAD BARGER FOR A FIVE YEAR HRA TERM. Motion carried. 5. Consideration of items removed from the consent agenda for discussion. None. 6. Consideration to hear and approve a concept for use of TIF assistance for public and site improvements associated with the Sunny Fresh Foods expansion. 011ie Koropchak advised that Don Roberts of Sunny Fresh was not able to attend the meeting. She gave a brief summary of Sunny Fresh's plans for expansion and their intent for installation of a sidewalk on Walnut Street, as well as a possible pathway being installed. Sunny Fresh is not looking at TIF assistance for their expansion but for improvements such as pathways and sidewalks which are consistent with downtown revitalization plan. Mark Ruff, Ehlers & Associates, addressed the members regarding the possibility of an agreement between Sunny Fresh and the HRA for TIF assistance for some of their improvements. Steve Bubul, Kennedy & Graven, advised that this particular project would most likely qualify for TIF assistance, but advised the need to make sure that the HRA looks at how this money is being spent, i.e. cleaning up blights, enhancing the area and not just using TIF to provide assistance to a building in the district that does not meet the blight test as that could create a problem. There needs to be a rationale that ties the findings back to the original plan. Jeff O'Neill also advised that when the City did their redevelopment plan it was to enhance the conditions such as pedestrian pathways/sidewalks and updated the commissioners on the Planning Commission's approval for a concept plan for Sunny Fresh at their meeting the previous night as well as Sunny Fresh's willingness to pay their portion of the improvements. O'Neill stated that he would like Sunny Fresh to sign a petition to put in a sidewalk on Walnut Street with their portion of the cost being 25%. The HRA approved using tax increment to assist with the construction of the following public improvements: 75% of the cost associated with the sidewalk along the west side of Walnut Street between 4th Street and the railroad track and the proposed pathway from 4th Street southerly along Linn Street then easterly along the railroad tracks to Walnut Street. It is anticipated the tax increment collected from the Sunny Fresh expansion of 17,000 sq. ft. will cover these public improvement costs. The approval is consistent with the -2- HRA Minutes - 01/05/00 Downtown Revitalization study, Planning Commission approval, allows for a safe pedestrian route to the community center, and is endorsed by Sunny Fresh. Staff will be working with Burlington Northern to obtain the go-ahead. A MOTION WAS MADE BY BRAD BARGER AND SECONDED BY STEVE ANDREWS TO APPROVE A CONCEPT FOR USE OF TIF ASSISTANCE FOR PUBLIC IMPROVEMENTS ASSOCIATED WITH THE SUNNY FRESH FOODS EXPANSION. Motion carried. 7. Consideration to adopt a resolution providing for the Sale of $7,555,000 Public Project Revenue Bonds, Series 2000A. Mark Ruff, Ehlers & Associates, addressed the HRA regarding the refinancing of the Community Center. The temporary bonds balloon in February 2001 and are currently callable in February 2000. A copy of the resolution for adoption by the HRA determining it necessary to issue the Authority's Bonds to finance the Community Center through the refinancing of the Temporary Bonds was provided as well as a copy of the Bond Sale Report and resolution for adoption by the City Council Mr. Ruff recommended the City shorten up to 15 years and structure the payments around the City's debt levies which gives a level predicable payment stream so that if the City has other projects they won't make the payment go up and down. A MOTION WAS MADE BY BRAD BARGER AND SECONDED BY STEVE ANDREWS TO ADOPT A RESOLUTION PROVIDING FOR THE SALE OF $7,555,000 PUBLIC PROJECT REVENUE BONDS, SERIES 2000A. Motion carried. Consideration to adopt a resolution modifying various budgets of TIF Districts and modifying the Redevelopment Plan of Central Monticello Redevelopment Project No 1. Mark Ruff, Ehler's and Associates, provided the members with the result of the Quick TIF Program and the reports thereof generated, it was noted that some line -items within the TIF budgets did not meet the line -item of the expenditures. It was suggested the HRA modify the budget and plans for consistency between the plans and the reports to the State Auditor. Mark Ruff provided a handout on sources and uses of funds noting that each line should have estimates. He will provide more information at the next meeting. The State Auditor has taken the position that the HRA needs to formally modify the plans if the expenditures are more or less than what was submitted previously. If the City would get , . , -- HRA Minutes - 01/05/00 audited in the future, these are some issues that would need to be addressed. Mark requested more time to prepare the resolution and modification. A MOTION WAS MADE BY BRAD BARGER AND SECONDED BY STEVE ANDREWS TO TABLE ANY ACTION AND ADVISED MARK RUFF, EHLER'S & ASSOCIATES, TO PROCEED WITH MODIFICATION AT A COST NOT TO EXCEED $2,000. Motion carried. 9. Consideration to adopt a resolution approving a modified Redevelopment Plan for Central Monticello Redevelopment Proiect No.1 and a modified TI Plan for TIF District No. 1-22. Steve Bubul, Kennedy & Graven, provided a resolution he prepared which modifies the Redevelopment Plan and TIF Plan for TIF District No. 1-22 (Downtown District). This resolution is the best faith effort to assure that the HRA can collect and retain the tax increment collected from larger redevelopment projects which did not receive tax increment assistance but arc located within District No. 1-22. It was the initial intent of the HRA to use this tax increment for eligible TIF expenditures within the district. Steve Bubul provided a report explaining the four year knock-down rule. The resolution simply modifies the Plans and directs staff to follow through. A MOTION WAS MADE BY STEVE ANDREWS AND SECONDED BY BRAD BARGER TO ADOPT A RESOLUTION APPROVING A MODIFIED REDEVELOPMENT PLAN FOR CENTRAL MONTICELLO REDEVELOPMENT PROJECT NO.1 AND A MODIFIED TIF PLAN FOR TIF DISTRICT NO. 1-22. Motion carried. 10. Consideration to transfer surplus tax increment from TIF District Nos. 1-8, 1-9. 1-10. I- I Land 1-16 to TIF District No 1-7. Ollie Koropchak reported that TIF District No. 1-8 (NSP) was decertified by resolution for payable 1999. The Tax Increment Guarantee ofapproximateIy $10,000 was paid by NSP in January 1999 when the district decertified leaving a small amount of surplus tax increment. Koropchak advised that the HRA members would be requested to adopt resolutions decertifying the other four districts. Except for District No. 1-9 (rapper's), a small amount of surplus tax increment is available to transfer from No. 1-10 (Remmele), I - I 1 (Martie), and 1-16 (PoIycast) to District No. 1-7. -4- , . . HRA Minutes - 01/05/00 It is the suggestion of the financial consultant that the surplus tax increment from these districts be transferred to TIF District No. 1-7 (NA WCO). District No. 1-7 was decertified a couple years ago and there remains a debt of $70,000 as of January I, 2000 or semi-annual payments of $10,000 through February I, 2003. After discussion by members and on the advisement of Mark Ruff, Ehler's & Associates, the members decided to table any action until further information from Ehler's & Associates. A MOTION WAS MADE BY STEVE ANDREWS AND SECONDED BY BRAD BARGER TO TABLE ANY ACTION. Motion carried. 11. Consideration to adopt resolutions for decertification of TIF District No. 1-9, No. 1-10. No.1-II, and No. 1-16. After discussion with Mark Ruff, Ehler's & Associates, it was suggested to tahle this matter for further information from Ehler's & Associates. A MOTION WAS MADE BY STEVE ANDREWS AND SECONDED BY BRAD BARGER TO TABLE ANY ACTION. Motion carried. 12. Consideration to authorize entering: into a House Lease for 3 Walnut Street between the I-1RA and Brandon Link effective Februarv 1.2000. Ollie Koropchak introduced Brandon Link to the liRA commissioners and gave a brief update of the condition of the house at 3 Walnut Street and provided a copy of the inspection comments of December 17. When the pending tenant looked at the house on December 27, the house was wide open, the water running, and the heat turned off. No water damage occurred. Public Works installed new locks ($109.44) and re-coded the garage door opener. The pending tenant, Brandon Link, is the son of the City flail's receptionist, Pam Link. He is interested in renting and would like to paint if the lIRA provides the paint. He has asked about re-carpeting the dining, living, and stairway areas where the previous tenant removed the carpet without HRA permission. Lastly, he anticipates his brother will reside at this location with him. A MOTION WAS MADE BY BRAD BARGER AND SECONDED BY STEVE ANI>REWS TO AUTHORIZE ENTERING INTO A HOUSE LEASE FOR 3 WALNUT STREET BETWEEN THE HRA AND BRANDON LINK EFFECTIVE -5- , . . HR^ Minutes - 01/05/00 FEBRUARY 1,2000 AND TO WAIVE THE FIRST MONTH'S RENT IN RETURN FOR PAINTING AND CARPETING BY THE TENANT. THE AUTHORITY ACCEPTED 2 ADULT TENANTS. Motion carried. 13. Consideration to authorize payment of the monthly liRA bills. A MOTION WAS MADE BY STEVE ANDREWS AND SECONDED BY BRAD BARGER TO AUTHORIZE PAYMENT OF THE MONTHLY HRA BILLS. Motion carried. 14. Consideration of Executive Director's Report. Ollie Koropchak provided the Executive Director's Report regarding Twin City Die Castings, Midwest Graphics, St. Benedicts Center, Ron Musich, TJ. Martin, as well as the City's continued discussion on potential industrial land acquisition. Koropchak also discussed TIF district 1-1 (Lincoln Properties), the garage lease for 220 Front Street which the HRA members agreed to continue for another year, and the use ofHRA lot on West Broadway by Skipper's Pools and the ongoing outdoor storage problem. Koropchak will once again talk with Skipper's Pool for removal of all debris. 15. Consideration of Committee Reports: a) City Council - Brian Stumpf - Nothing new to report. h) MCP - Steve Andrews - Planning for annual meeting coming in February; focusing on projects for next year. c) Marketing - Darrin LahriBrad Barger - No update. 16. Other Business. None 17. Adi ournment A MOTION WAS MADE BY STEVE ANDREWS AND SECONDED BY BRAD BARGER TO ADJOURN THE MEETING AT 9:00 P.M. Motion carried. ~f /'WJ ~^.,^.n^, ') Chair 7/ ~clrd:; S~::;~;;;; Kraemer -6-