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HRA Minutes 03-01-2000 ~. e . 4t HRA Minutes - 03/0 I /00 MINUTES MONTICELLO HOUSING ANn REDEVELOPMENT AUTHORITY Wednesday, March 1,2000 -7:00 p.m. City Hall- 505 Walnut Street - Academy Room Members Present: Chair Bob Murray, Vice Chair Darrin Lahr, Brad Barger, Steve Andrews, Dan Frie and Council Liaison Brian Stumpf Officers Present: Treasurer Rick Wolfsteller, Executive Director Ollie Koropchak and Recorder Lori Kraemer 1. 2. 3. 4. Call to Order. Chair Murray called the meeting to order at 7:00 p.m. Consideration to approve the February 2, 2000 BRA minutes. A MOTION WAS MADE BY BRAD BARGER AND SECONDED BY DAN FRIE TO APPROVE THE MINUTES, AS WRITTEN, OF THE HRA MEETING ON FEBRUARY 2, 2000. Motion carried. Consideration of adding agenda items. Ollie Koropchak added Steve Schoen, Aroplax, Tax Deficiency District 1-12 as item 5A and Scott Rolfe, Skippers Pools as item 5B. Koropchak removed Item 7 from the Agenda. Consent Agenda. None 5. Consideration of items removed from the consent agenda for discussion. None 5A. Steve Schoen, Aroplax, TIF district 1-12 tax deficiency. Ollie Koropchak advised the lIRA that Steve Schoen would be speaking on behalf of Jerry Schoen for Aroplax regarding the letter received from the HRA requesting payment for a tax deficiency. Koropchak provided a copy of the letter she sent to Jerry Schoen as well as follow~up correspondence from the Schoen's attorney. The HRA discussed a discrepency in the numbers provided by the Schoen's attorney and the numbers the City had regarding the tax deficiency. -1- HRA Minutes - 03/01/00 Steve Schoen addressed the members regarding the letter received from the HRA requesting the tax deficiency payment in 30 days. He stated their concern with the timing of the request for this payment at a time when Aroplax had just begun an expansion project and felt the request to be due and payable in 30 days was not sufficient enough time. Mr. Schoen felt the HRA should not have waited this long to advise Aroplax of the deficiency amount and felt it was unfair. Darrin Lahr explained what was happening with the Legislature and their changes, and that this was unexpected by the HRA as well. Lahr also explained the HRA's attempt at rectifying the deficiency issue before it was at the end of the period where there was a potential for a much larger amount to be due. Lahr also assured Mr. Schoen that the HRA would be negotiable in working out a payment schedule that would satisfy both parties. Koropchak recommended tabling this item until the April meeting and in the meantime HRA and City Administrator would further check into this district, as well as speak with the Schoen's attorney regarding the discrepancy in the tax figures. A MOTION WAS MADE BY DARRIN LAHR AND DAN FRIE TO TABLE THIS ITEM AND TO DECLARE THE LETTER STATING PAYMENT DUE AND PAYABLE IIsi 30 DAYS NULL AND VOID. Motion carried. 5B. Scott Rolfe/Skippers Pools 011ie Koropchak advised the members of the status of the HRA lot in question. Mr. Rolfe addressed the members stating his intent to display 3 pools this year which need to be filled with water to keep them in place. Mr. Rolfe assured the HRA that the previous concern regarding "debris" on this lot had been taken care of and that the only item on the HRA lot at this time was the pool that he had on display during the summer months last year. Koropchak advised the HRA that their reasoning in the past to let Mr. Rolfe use the HRA lot on a seasonal basis was to avoid having to lease this property to Mr. Rolfe and collect rent as well as putting this property back on the tax roll. City Administrator Wolfsteller advised that the HRA would have the option of putting the property on the tax rolls, or pay 30% of the rent received in lieu of taxes. There was concern by the members of the pools being filled with water and the potential for someone getting into the pools after business hours and harming themselves. Mr. Rolfe advised that he had no previous problems with vandalism or breaking and entering, nor he does not anticipate any problems this year. Rolfe advised the pools will be -2- . . . HRA Minutes - 03/0 I /00 covered with the appropriate eovers and that it would be very dinicult for someone to even get back to where the pools would be displayed. He stated that it would also be very difficult for anyone to be able to remove the covers without the appropriate tools as the cover is screwed into the pool. The members discussed the possibility of a lease agreement which would include steps to identify possible risks. The lease would be for no more than a six month period and then renewable at that time. Steve Andrews and Darrin Lahr were not comfortable with this arrangement as long as the pools were going to be filled. A MOTION WAS MADE BY DAN FRTE AND SECONDED BY BRAD BARGER TO OFFER A LEASE TO SKIPPER POOLS AND SPAS FOR DISPLAY PURPOSES ONL Y, THE COST TO BE CONSISTEN"r WITH THE COST OF THE ATTORNEY FEES TO DRAFT TIlE LEASE, CONTINGENT ON CUP APPROVAL BY THE PLANNING COMMISSION AND CITY COUNCIL, AS WELL AS A CLAUSE STATING THE HRA'S RIGHT TO TERMINATE THE LEASE WITHIN 60 DAYS AND THE UNDERST ANDING THAT THE POOLS WOULD BE SECUREL Y COVERED NIGHTLY. Motion carried three to two with Darrin Lahr and Steve Andrews voting in opposition. After further discussion, Chair Murray requested Scott Rolfe to attend the August HRA meeting to update them on the status of the display and discuss any concerns at that time. Koropchak noted this item would be forwarded to the Planning Commission for their March 7,2000 meeting when Mr. Rolfe requests his CUP. 6. Continued - Consideration to adopt a resolution approvin~ a modified Redevelopment Plan for Central Monticello Redevelopment Proiect No. I and a modified Tax Increment Plan for Tax Increment Financing Districts therein. Ollie Koropchak stated she had received this resolution from Kennedy & Graven and that it was advised that the HRA approve this modification. After a brief discussion, the members concluded that this was merely a house-keeping item and that they would follow the advise of Kennedy & Graven to approve this resolution. A MOTION WAS MADE BY DARRIN LAHR AND SECONDED BY STEVE ANDREWS TO ADOPT THE RESOLUTION APPROVING A MODIFIED REDEVELOPMENT PLAN FOR CENTRAL MONTICELLO REDEVELOPMENT PROJECT NO.1 AND A MODIFIED TAX INCREMENT PLAN FOR THE TAX INCREMENT FINANCING DISTRICTS THEREIN. Motion carried. -3- . . . HRA Minutes - 03/0 I /00 7. Consideration to approve the Estoppel Certificate and subordination Agreement associated with the Contract for Private Development between Twin City Die Castings, the HRA and the City. This item was removed from the Agenda at this time. 8. Considcration to authorize payment of the monthly I IRA bills. A MOTION WAS MADE BY DARRIN LAHR AND SECONDED BY BRAD BARGER TO AUTHORIZE PAYMENT OF THE MONTHLY HRA BILLS. Motion carried. 9. Consideration of Executive Director's Report. Koropchak updated the BRA on the following items: . TIF Distriet No. 1-9, Tappers Inc., with Steve Bubul's suggestion of no need for an assignment with interest from Bill and Barb Tapper, however, suggested that Bill and Barb address the BRA in writing requesting said invoice and also acknowledging this does not release the Tapper's of their legal obligation within the contract between the BRA and Bill and Barb. TIF District No. 1-12, Jcrald & Mary Shoen's Tax Increment deficiency, which was discussed earlier on the agenda; Skipper's Pool & Spas and their request to the BRA for a CUP. This item was discussed earlier in the agenda; Landscaping Partnership Program - Greg Engle, Parks Superintendent, attended the class on February 26; Koropchak and Brad Barger also updated the membcrs on the Lender's Breakfast on 2/18/00 and some of the comments from the lenders. Brad added that the Lenders were interested in attending a future HRA meeting; Koropchak advised the HRA of a rccent meeting with Collier Towle Real Estate regarding City-owned Industrial land; The Prospect Team visited an Industrial Business in Rogers on 2/29/00 - Profile Powder Coatings who are proposing new technology for Monticello that would be powder coating wood products, looking to locate somewhere between Maple Grove and St. Cloud. This would be an expansion possibly locating along Chelsea Rd., no outdoor storage, block building versus mctal, 30,000 sq. ft., and approximately 30 jobs with salarics between $10 & $25 per hour, up-front financing was important rather than pay as you go. Koropchak stated that perhaps the BRA would like to give some options. 'I'hc members were reluctant to usc . . . . . . -4- . . . HRA Minutes - 03/0 1/00 . up-front finaneing until they knew more about the company and the types of jobs and salaries. Arrangements are being made for the Sunny Fresh recognition luneheon to be held at the Monticcllo Community Center on 3/9/00; Twin City Die Castings grant and loan agreement for the State Grant which should be addressed at the next Council meeting; New IDC officers and EDA officers. 20,000 sq. ft. building for a manufacturing eompany (Adaboy), currently leasing from Jay Morrcll, but looking for their own facility. Koropchak will be mceting with them. Koropehak noted that the next lIRA meeting would be their annual meeting with the election of oHieers. Darrin Lahr stated he would not be able to attend. . . . . 10. Considcration of Committec Reports: a) City Council - Brian Stumpf. - At the last Council meeting Kitty Baltos was authorized to stafTthe Community Ccnter as she felt nccessary. Also notcd the possibility ofthe hours being changed, but nothing definitc at this point. b) MCP - Steve Andrews - Was not able to attcnd the annual mecting. c) Markcting - Darrin I,ahr/Brad Barger - Lahr was absent. Bargcr stated they werc working on the Sunny Fresh luncheon for 3/9. d) Community Center - Bob Murray - No additional update. 11. Other Business. None 12. Adiournmen1. A MOTION WAS MADE BY DAN FRIE AND SECONDED BY BRAD BARGER TO ADJOURN THE MEETING AT 9:00 P.M. Motion carried. M..J1'11.U Robert Murray, Chair -5-