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HRA Minutes 02-02-2000 . . . . , HRA Minutes - 02/02/00 MINUTES MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY Wednesday, February 2, 2000 - 7:00 p.m. City Hall- 505 Walnut Street - Academy Room Members Present: Chair Bob Murray, Vice Chair Darrin Lahr, Brad Barger, Steve Andrews and Dan Frie Absent: Council Liaison Brian Stumpf OtIicers Present: Treasurer Rick Wolfsteller, Executive Director Ollie Koropchak and Recorder Lori Kraemer Staff Present: Jeff O'Neill, Deputy City Administrator Guests: Mark Ruff, Ehlers & Associates, Inc. Bill and Barbara 'fapper, Tapper's, Inc. Barb Esse, Amanda Gaetz and Susie Wojchouski, MCP I. Call to Order. Chair Murray called the meeting to order at 7:00 p.m. 2. Consideration to approve the January 5. 2000 HRA minutes. A MOTION WAS MADE BY STEVE ANDREWS AND SECONDED BY BRAD BARGER TO APPROVE THE MINUTES, AS WRITTEN, OF THE HRA MEETING ON JANUARY 5, 2000. Motion carried. 3. Consideration of adding agenda items. None 4. Consent Agenda. None 5. Consideration of items removed from the consent agenda for discussion. None 6. Consideration to adopt a resolution awardine the sale of $7.555.000 Public Proiect Revenue Bonds. Series 2000A. Mark Ruff. Ehlers & Associates, advised that they received bids today and only one bid was received. He also advised that the City Council did authorize the execution and -1- . , . - HRA Minutes - 02/02/00 delivery of a ground lease and a lease-purchase agreement, and approved and authorized issuance of public project revenue bonds and execution of related documents. The members questioned what the interest rate would have beenl4 months ago when the project was stopped and Ruff noted it was 3/4 of a percent lower. He also noted this increases the levy approximately $60,000 to $70,000, when compared to rates last hlll. Ruff also noted that the City can re-tinance at any time. A MOTION WAS MADE BY STEVE ANDREWS AND SECONDED BY DAN FRIE TO ADOPT A RESOLlJTION A WARDING THE SALE OF $7,555.000 PUBLIC PROJECT REVENUE BONDS, SERIES 2000A. Motion carried unanimously. 7. Continued - Consideration to adoot a resolution modifving the budgets of HRA-TIF Districts and modifyinl! the Redevelonment Plan of Central Monticello Redevelopment Project No.1. Ollie Koropchak advised the members that she had met with Mark RufI and Steve Bubul previously; however, it was requested to table any action until the March meeting. A MOTION WAS MADE BY STEVE ANDREWS AND SECONDED BY BRAD BARGER TO TABLE ANY ACTION AT THIS TIME. Motion carried unanimously. 8. Continued - Consideration to authorize transfer surolus tax increment from TIF District Nos 1-8.1-11. and 1-16 to TIF District No. 1-7. Ollie Koropchak provided the report asking the HRA to authorize transfer of surplus tax increment from three TIF districts, No. 1-8, I-II, and 1-16, to TIF District No. 1-7, which has a deficit and these districts can be pooled. Koropchak advised the dates these districts were decertified and the surplus balances. "I'he sum of the surplus is approximately $43,000 for transfer to District No. 1-7 (NA WCO). After transfer and 1999 expenditures in District 1-7, there remains a deficit of approximately $65,000 and a remaining unpaid pay-as-you-go balance of $70,000. The remaining deficiency in District No. 1-7 will be considered at the liRA annual meeting in April after review of TIF year-end reports. A MOTION WAS MADE BY DAN FRIE AND SECONDED BY STEVE ANDREWS TO AUTHORIZE TRANSFER OF SURPLUS TAX INCREMENT FROM TIF DISTRICT NOS. 1-8,1-11 AND 1-16 TO TIF DISTRICT NO. 1-7. Motion carried unanimously. -2- . , . ... HRA Minutes - 02/02/00 9. Continued - Consideration to adopt resolutions for decertification of TIF District No. 1-9. No. 1-10. No.1-II. and No. 1-16. Ollie Koropchak provided the report requesting the HRA to adopt resolutions for decertification of four TIF Districts. Koropchak advised that TIF District No. 1-16 (Polycast ) is an early request for dccertification as the Interfund Loan of $80,000 was retired with thc 1999 tax increment. This district is required by Law for dccertification December 31,2004. Decertifying this district early will prevcnt the City from paying the HACA Penalty which is equal to approximately 30% of the tax incrcment and also allows for the tax increment to be distributed to all taxing jurisdictions. Thc adopted resolutions will be forward to the County Auditor's Office noting no collection of tax increment for these districts for payablc 2000. A MOTION WAS MADE BY DARRIN LAHR AND SECONDED BY BRAD BARGER TO ADOPT RESOLlJTIONS FOR DECERTIFICATION OF TIF DISTRICT NO. 1-9, NO. 1-10, NO. 1-] 1 AND NO. 1-16. Motion carried unanimously. 10. Consideration to authorize employing an attornev to declare default of the Contract for Private Redevelopment between T.J. Martin. Inc. and the HRA. Ollie Koropchak advised the HRA members that she received a copy of the receipt proving payment of the second half of 1999 taxes, and received a chcck for the first half tax increment deficicncy owed. A MOTION WAS MADE BY DARRIN LAHR AND SECONDED BY STEVE ANDREWS OF NO ACTION AS TAXES WERE PAID IN FULL. Motion carried unanimously. 11. Consideration to review Tax Increment Guarantee Deficiency relative to the Amended and Restated Amendment to Contract for Private Redevelopment between the HRA and William R. and Barbara R. Tapper. Ollie Koropchak provided the staff report, introducing Bill & Barbara Tapper. Mr. Tapper addressed the members stating he felt cheated, he did not realize that he would be paying a $30,000 def1ciency. l-Ie did, howcver, rcalize that without the assistance of TIF they would not have been able to locate in Monticello. His frustration is that thcy have done cverything in their power, paid all taxcs, and due to no fault of theirs they cnded up with this large dcficiency. Hc was aware of a small deficiency, but not this large. Hc was '" -,)- . I . '- HRA Minutes - 02102/00 not awarc that thc BRA was asscssing him this amount. His tax accountant fccls thcy havc a rcason to adjust this as they have a corporation leasing from them, the company pays thc taxes, and thcy have made no provisions to pay this out of pocket. Thc argument is that it is in fact a company obligation, but still a risk. Reality is that they did agree to pay this. Mr. Tapper asked ifthere was anything the HRA can do to make paying this deficiency back a little easier. An option he had would be to have the HRA/City bill the corporation rather than them (Bill & Barb Tappcr) or stretch the payments out so its not one large lump sum. The members discussed several ideas of how to lessen the burden of this deficiency and Koropchak stated she would look into thc potential of assignment as well as a paymcnt schedule for Tappers. Koropchak also rcminded the members that the Private Rcdcvelopment Contract stated a "company" could pay as the deficicncy came up, but back in 1996 this was changed. Most of the members also noted they did not feel the need to attach interest on as well and they could possibly discount the face value of the note to make up for the interest not charged (interest might nccd to be collected per the State). Mr. Tapper was asked what kind of term he would bc comfortable with and he suggested 3 years. It was suggested to talk to Steve Bubul and work out an assignment. A MOTION WAS MADE BY DARRIN LAHR AND SECONDED BY DAN FRIE TO ADVISE STEVE BlJBUL TO PREPARE AN ASSIGNMENT FOR TAPPERS, INC., TO BE PAID IN THREE EQUAL PAYMENTS OVER THREE YEARS. BOB MURRAY AMENDED THE MOTION STATING THE FIRST PAYMENT TO BE DUE AND PAY ABLE MARCH 15,2000. Amended motion carried unanimously. After further discussion it was determined that the HRA abide by their original contract in asking for yearly deficiency payments. 12. Consideration of a rcqucst from MCP for fundin!! to assistance with development and printin!! costs associated with a rctail marketin!;:: piece. Barb Esse, Amanda Gaetz and Susie Wojchouski, MPC, were present. Barb Esse made a presentation to theHRA requesting funds to assist with development and printing costs associated with a retail marketing piece developed by thc MCP. Esse noted that since their inception they've felt they had to get a marketing package and go out seeking businesses. After three years they are ready to start soliciting businesses. Esse noted that this was all put together by volunteers, they would like to complete 500 sets and an addition 500 brochures, 400 of which would be available to the lIRA. They -4- . , . 13. 14. HRA Minutes - 02/02/00 will also include all available spaces, at this time there are 8 properties for rent and 13 spaces. MCP will also include a calender of events, maintain this monthly, will be put in folders and includes postage. Will have their intern travel to similar neighboring cities to see what we MCr might be missing. They would like to sell this to the local bankers and may even place an ad in the paper as well. Their goal is to start locally, area and then national and will monitor their progress. Amanda Gaetz stated they completed a consumer survey and found the number one reason people don't shop downtown is due to the lack of selection. Some potential businesses to target would be upscale type restaurants, sporting goods stores, arts/crafts supply stores as well as home furnishings. A MOTION WAS MADE BY STEVE ANDREWS AND SECONDED BY BRAD BARGER TO APPROVE A REQUEST FROM Mep FOR FUNDING OF $2,367 FROM THE 101% ADMINISTRATION OF TIF DISTRICT NO. 1-22, TO ASSIST WITH DEVELOPMENT AND PRINTING COSTS ASSOCIATED WITH A RETAIL MARKETING PIECE. Motion carried unanimously. Consideration to authorize Davment of the monthly HRA bills. No bills were received. Consideration of Executive Director's report. a) 3 Walnut Street - Received the last months rent and damage deposit. A list was provided of things damaged, not working, etc. to advise the HRA that this was here upon move-in. Koropchak will contact Public Works for repair of the foundation. 220 Front Street garage - Marian Carlson submitted the annual rent of $60 for year 2000. The contract was extended for one year. lIRA lot on West Broadway ~ The Planning Commission will review the CUP at their March meeting with the knowledge of the HRA previous letters relative to the request for removal of debris. It was decided that Bob Murray would stop by on Wednesday and speak with the owners. TIF District No. 1-12/ Aroplax Corporation - Copy of the letter written to Jerald and Mary Schoen relative to the Tax Increment Guarantee Deficiency. Members requested a second letter be addressed the Schoens stating the payment will be due and payable, and to budget accordingly. TIF District No. l-17/Fay-Mar - Copy of the letter written to Ron Musich relative to unpaid taxes for the second half of 1999. He was unaware the taxes had not been paid due to internal management problem. Unpaid taxes, interest, and penalty were paid in full on January 19,2000, per the Office of the County b) c) d) e) -5- . , . '... HRA Minutes - 02/02/00 t) Treasurer. TIF District No. 1-15/Birkeland Jr. - Copy ofletter notifying the developer that their reimbursement check has been prepared and will be released upon the City receiving a check in the amount of $2,426.59 per the Contract. TIF District No. 1-23/Krenz - Copy of third notice mailed to Krenz for reimbursement of II RA expenses and copy of the remitted check for payment in full. $500,000 Grant - Letter notifying the City of Monticello ofthe approval of the $500,000 grant to the City for a loan to Twin City Die Casting, Inc. Pay-as-you-go payments - Copies of the checks to be mailed January 31, 2000, per individual Contracts. Reimbursements due February 1, 2000. Acquisition of industrial land - On January 24, the Council approved a concept plan for exchange of the City's 64-acre Remmele parcel and the Chadwick/Goeman's 140-acre parcel for industrial use. *Mississippi Shores has submitted meeting the 40/60criteria, low income rental housing and this is the first time they will have vacancies. *Local contribution reporting is done. *Metcalf Larson Dist 1-2, Koropchak noted that in the future there will be a shortfall in this district. There is no deficiency clause in this contract. *Lenders Breakfast to be held at City Hall on February 18,2000 at 7:30 a.m. *Sunny Fresh recognition is on hold. *Bus Tour is June 14 which coincides with Chamber Golf Outing *Koropchak attended the Wright County Partnership Workforce task force that mOfl1ll1g. *The members also asked that the City Web Site be updated. g) h) i) j) 15. Consideration of Committee Reports: a) City Council - Brian Stumpf. - Brian was not present. b) MCP - Steve Andrews - Annual Meeting is 2/22/00 at the Community Center c) Marketing - Darrin Lahr/Brad Barger - Nothing new to report. d) Community Center - Bob Murray - Jeff O'Neill gave the update, noting the progress and the intent to open on schedule, Monday, February 7, 2000. 16. Other Business. As noted under the Executive Director's Report. 17. Adjournment. A MOTION WAS MADE BY DARRIN LAHR AND SECONDED BY BRAD BARGER IlJOURN THE MEETING AT 9:35 P.M. Motion carried unanimously. ~.~ Robert Murray, Chair Lori Kraemer, ecording Secretary -6-