HRA Minutes 05-03-2000
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l-IRA Workshop Minutes 5/3/00
MINUTES
HRA, CITY COUNCIL, AND LENDERS WORKSHOP
MAY 3, 2000 5:30 PM
HRA Members Present:
Dan Frie, Steve Andrews and Brad Barger
Staff Present:
Ollie Koropchak, Rick Wolfs teller, .Jeff O'Neill and Lori Kraemer
Council Members:
Roger Carlson, Brian Stumpf and Bruce Thielen
Guests:
Dick Frie, Ron Hoglund and Susie WO.ichouski
Lenders:
Kevin Doty, Hill ~=ndres, Tom Lindquist, Greg Hohlen and Dale
Lungwitz
Acting HRA Chair Dan Frie called the workshop to order at 5:30 P.M.
Dan Frie provided background regarding the Downtown and Riverfront Revitalization, TIF District,
and the North Anchor area. Frie advised of the long range plans of 5 years in the pink area on the
map and 20 years in the green. OlIic Koropchak, Executive Director, provided more background on
these areas as well, and noted also the two TIF expenditures that the HRA has authorized. Jeff
O'Neill, Deputy Administrator, advised the accomplishments so far and asked the members and
lenders for direction from here.
Koropchak noted that the City Council in August of 1999 had recommended the North Anchor area
be revisited again in six months. Koropchak cxplained the 4 and 5 year knock down rules which wilI
take place June 30, 2001 and June 30, 2002, respectively. The 5 ycar knock~down rule states the City
has the ability to do financing, i.e. bonds would need to be sold, or pay-as-you go, and that the
expenditures of the project had to be expended. For public improvements, the City would have had to
have entered into a binding contract with a third party.
Dan Frie added that it was determined by Council previously that it was somewhat premature at that
time to get RFP's regarding the North Anchor area. Also the focus has changed from the North
Anchor area to the Ferrel gas site, as well as new interest in the downtown Amoco Station. Frie
stated that the price of the Amoco site is relatively large compared to the size of the site. It was also
stated that there had been several inquiries into this site for businesses such as a detail shop or a
contractor fCJr office/storage of equipment and Frie statcd it is currently being rented and the owner
had stated he would be interested in working with the City.
Dan Frie then asked for feedback from the Lenders and Council Members. Kevin Doty, First
Minnesota Bank, stated he has had no interested parties inquiring on the downtown area, but that he
had been working with someone on the Standard site. Ooty also mentioned a concern regarding
possible contamination of this site, and feels that may be why it may not be particularly marketable.
Frie stated that he was told there was no contamination and O'Neill stated there may be State funds
available for cleanup if contamination was found. It was discussed as to what typcs of busi nesses
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lIRA Workshop Minutes 5/3/00
were al10wcd in the CCD district and O'Neill stated the intended uses were retail/oHicc types of
busincss or possiblc retail on first level and housing on 2nd level, housing alone would not be
consistent with the downtown revitalization plan. O'Neill also stated that a servicc station would not
be allowable. It was also suggested that perhaps the HRA could use some funds to clean up the site,
demolish and create green space, or work with the current owner on c1eanup/tcar down. Frie stated
this was suggested to thc owner but that he was not intercsted as hc feels therc is value in the building
itself.
It was also noted that most inquiries into the Monticel1o area are looking for new, larger square
footagc sites with good visibility and parking.
Council member Stumpf advised that thcre are arcas in the City that nccd general clean-up more so
than redevelopment and that this seems to be morc of an enforcement issue. It was discusscd whether
thc City has thc resources for current code enforccment as well.
The Grassl propcrty was discusscd in terms of a walkway previously suggested between the City and
Mr. Grassl. Mr. Grassl's contractor statcd no intercst in this and that hc is looking at building new
approximately 2 lots down from his current building.
Tom Lindquist, Lender, asked ifit would bc more feasible for HRA/City to purchasc propertics to
the south or east of the Amoco site along with the Amoco sitc to make it more marketable size.
. Dan Frie talked about various programs to clean up blighted arcas and Ollie Koropchak explained the
Small Cities Development Program. She listed criteria that necds to be met. Jeff O'Neilllistcd some
programs that othcr cities usc that may bc an intercst to the City.
Susie Wojchouski, Chamber, noted an increase in pcople requcsting information on Monticcl1o
which the MCP has respondcd to with marketing information. Most of the inquires werc for smal1
busincsses. Grcg llohlen, First National Bank, shared somc input on small cities programs stating it
was very compctitive and he suggestcd hiring someone from outside to prcpare the application at a
cost of approximately $10,000 to $15,000.
Dick Fric reported on the Planning Commission's input regarding North Anchor and that thcy are
very supportive of it. Koropchak noted that after a prior public meeting it was the consensus that it
may be somewhat prematurc at that timc to go out for requcsts for proposals bccause of the vacant
Fcrrel Gas Sitc and the Locust/West 7th Street areas.
Consensus: 1. BRA to proceed with rcsearch to redevelop the Amoco sitc and surrounding sitcs. 2.
Research scattered housing funds and plans.
Vicc Chair Dan Frie closed the meeting at 6:50 PM.
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HRA Minutes - 5/3/00
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MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, May 3, 2000 - 7:00 p.m.
City Hall- 505 Walnut Street - Bridge Room
Membcrs Present:
Vice Chair Dan Frie, Brad Barger, Steve Andrews, Bob Murray and
Council Liaison Brian Stumpf
Absent:
Chair Darrin Lahr
Officers:
Treasurer Rick Wolfsteller, Executive Director Ollie Koropchak, Deputy City
Administrator Jeff 0 'N eill and Recorder Lori Kraemer.
1. Call to Order.
Acting Chair Dan Frie call cd the meeting to order at 6:50 p,m,
2. Consideration to approvc the HRA minutes of April 5.2000,
A MOTION WAS MADE BY BRAD BARGER AND SECONDED BY STEVE
ANDREWS TO APPROVE THE MINUTES OF THE REGULAR HRA MEETING
. OF APRIL 5, 2000. Motion carried.
3, Consideration of adding agenda items.
None
4, Consent Agenda.
4A. Consideration to approve the Certificate of Completion f()r the St. Cloud Hospital proieet.
Ollie Koropchak, Executive Director, provided the report advising the members that the
certificate of occupancy was issued by the Building Department on March 28,2000, for the
60-unit independent senior housing facility known as St. Benedict's and constructed the St.
Cloud Hospital. Per the Contract for Private Redevelopment betwecn the HRA and the St.
Cloud Hospital, completion of the minimum improvements was scheduled for December 31,
1999, and modified to June 30, 2000. With the issuance of the certificate of occupancy, the
HRA is requested to approve the Certificate of Completion,
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As of January 12, 1999, the amount expended by the HRA for legal and financial consultants
was $4,723,85, However, Koropchak will revisit the expcnditUfe for an update prior to
reimbursement of the $276,15 and will advise thcm of the need to provide evidence of
invoices paid as described in the contract.
Commencing one year from occupancy, the redeveloper agreed to prcpare and submit
annually to the !-IRA a notarized report certified to be accurate by the Owner noting this
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project meets the requirements of the 40-60 test under Section 42. Such evidence is a
Certification of Tenant Eligibility which assures the district is and remains a "qualified
housing district."
A MOTION WAS MADE BY STEVE ANDREWS AND SECONDED BY BRAD
BARGER TO APPROVE THE SAID CERTIFICATE OF COMPLETION. Motion
carried.
5. Consideration of items removed from the consent agenda fi)r discussion.
None
6. Continued - Consideration to acccpt the hourlv rate increase request from the lIRA financial
consultants and review other financial consultant proposals.
At thc BRA meeting in April, the commissioners continued this itcm and requested the
Exccutivc Director research othcr firms for competitive prices and services. Ehlers and
Associates had requested an hourly fec increase from $105 to $125. Both thc City
Administrator and thc Exccutive Director noted an hourly increasc was worthy; however, the
question was how much of an increase. Ehlers knowledgc ofthc history of the HRAand its
districts certainly has merit.
Ollic Koropchak, Exccutivc Dircctor, provided the names of the financial firms contacted for
proposals as well as copies of the proposals that were actually submitted. These are the
financial firms that submitted proposals: Springstcd, Inc. - previously used by thc City and
David Drown Associates - presentation at CMI F Scminar.
Koropchak bricfly wcnt ovcr some of the proposals with the liRA mcmbers. The members
stated that the Ehlers proposal for rate increase was somcwhat steep and member Stcvc
Andrews stated that he was not that pleascd with Ehlers and would not bc opposcd to trying
someone new. City Administrator Wolfsteller and Deputy Administrator O'Neill gave
insight as to the City's reason for hiring Ehlers in thc first and noted that Ehler's was hircd
during onc ofthc first largc projects in the City. Wolfsteller statcd thc City used Springsted
for 20 years and when Ehler's camc into the picture it was just easier to dcal with one
company versus two separate. Koropchak expressed her feelings on thc benefits of using
Ehlcr's with thcir programs and that they work very well with Kennedy & Graven.
A MOTION WAS MADE BY BRAD BARGER TO ACCEPT THE HOURLY RATE
INCREASE FROM $105 TO $125 AS PER THE MARCH 30, 2000 REQUEST, FOR
A PERIOD 01'" THREE YEARS. DAN FRIE SECONDED THE MOTION. Motion
carried 3 to 1 with Steve Andrews opposing.
Steve Andrews was excused from thc mccting at 7:30 p.m.
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HRA Minutes - 5/3/00
7.
Consideration of an update from Scott Rolfe relative to the Lease Agreement between the
HRA and SPS Services, Inc.
At the April HRA meeting, the commissioners authorized entering into the I ,case Agreement
between the TIRA and SPS Services, Inc. at a lease fee of$61O.87 as prepared by legal
counsel and subject to receiving evidence of all required insurance in the form of a
Certificate of Insurance as outlined in the agreement. The Agreement has not been
executed. Ollie Koropchak, Executive Director, informed members she had spoken with
Scott Rolfe, Skippers Pools and Spas. They have changed their insurance company effective
.June 1, 2000 and will provide evidence at that time. Scott has not received an invoice
relative to the costs incurred by the HRA for preparation of the document and the public
hearing notice.
Mr. Rolfe was unable to attend the meeting. No action was required at this time.
8.
Consideration to discuss for determination the selection and compensation of the F;;xecutive
Director of the HRA per the Bvlaws.
Ollie Koropchak, Executive Director, provided a copy of the agenda item she had written
prior to it being reviewed and re-written by City Administrator Rick Wolfsteller and Deputy
Administrator .Je1TO'Neill. Koropchak reminded the members that at the April HRA
meeting, the commissioners approved the TIRA Bylaws amending the regular meeting place
of the liRA from 250 East Broadway to 505 Walnut Street. Additionally and upon review
of the Bylaws, it was noted that the selection and compensation of such personnel (including
the Executive Director) shall be determined by the Board of the Commissioners subject to
thc laws of the State of Minnesota.
The Executive Director suggested contacting the City Administrator for input of the
selection and compensation of the HRA Executive Director. However, the commissioners
requested the discussion or item be placed on the HRA agenda in May.
The Job Description of the Economic Development Director was updated in November,
1999, and submitted to the Director's Supervisor for review with recommendations
forwarded to the Administrator. This position was part of the Comparative Worth Study
enacted by the City Council in December, 1991. The effective date ofthejob description for
the Economic Development Director was November 15, 1991, and has not been updated
slt1ce.
The lIRA members, staff and Koropchak discussed and agreed that from the prospective of
the lIRA, the duties and responsibilities of the Executive Director have changed or increased
and the knowledge, skills, and abilities have incrcased with experience or grown due to the
new reporting requirements and changes enacted by the State Legislators which governs the
HRA and TIF plus the addition of 14 new TIF Districts. The overall general supervision of
the lIRA's business and affairs has grown as the HRA has broaden their role in the overall
economic development activities of the City of Monticello.
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O'Neill briefly explained the Comparable Worth program and how the City expects the
employee to keep management informed of job changes. Acting Chair Frie asked for
Koropchak's supervisor to submit to the HRA something in terms of a questionnaire for
annual reviews as a tool for the HRA members to fill out and submit back to the supervisor.
Members endorse the work that Koropchak has done, encourages her to continue, and finds
no fault with any activities throughout the years.
It was discllssed that the HRA review the Bylaws and see if they need to be updated. This
will be on the June Agenda.
9. Consideration to discuss and summarize special meeting held at 5:30 p.m.
Acting Chair Frie asked for this item to be put on the June agenda and stated that Brad
Johnson was interested in discussing this further with the HRA.
Brian Stumpf stated that Council authorized staff to work solely with Brenny Properties to
work on the Ferrell Gas site until September 1, 2000. The Amoco site was discussed again
and Frie stated Brad Johnson has a proposal for that site, and that he had also heard that the
two house owners adjacent to that site have stated their willingness to sell their property.
Again, it was stated that this item would be discLlssed in detail at the June meeting.
10.
Consideration to authorize payment of the monthly II RA bills.
A MOTION WAS MADE BY BOB MURRAY AND SECONDED BY BRAD
BARGER TO AUTHORIZE PAYMENT OF THE MONTHLY HRA BILLS, Motion
carried,
11.
Consideration of Executive Director's Report.
a) TIF District No. 1-12 - Koropehak provided a copy of the letter to the Schoens notifying
them of the Commission's action of April 5 including an invoice of payment due. As of
April 25, the May 5 payment has not been received.
b) 2000 Minnesota Business Assistance Forms - At the April meeting, the Commissioners
requested a copy of the forms submitted to the State as relative to the HRA subsidy, copies
of the EDA or City forms were not provided.
c) Prospects - Letter to Linda Lund. Koropchak was unable to get more detail of the
manufacturing business. Also noted was the fact that after faxing and mailing the
information and brochures, Charlie Pfeffer updated Koropchak on the availability of the
60.55 acres as marketed. The 60.55 is less the 7.15 acres being platted for Profile, vacant,
and Pipeline and less another 10 acres for a cl ient Charlie is working with. This means the
marketed parcel consists of 43.4 acres not 60.55 acres. The other larger parcel marketed is
that proposed by the City tcx swap with Chadwick.
d) Wayne Gus - Power Training Service. Looking to construct a 5,000-6,000 sq ft steel
building. Rebuilds railroad and bulldozer transmissions. Requested no assistance.
Currently in Rogers. Gave Pfeffer's phone.
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I-IRA Minutes - 5/3/00
e) Davcl lost - Twin City Bindery - Lease up in December, wants to build 10,000 to 12,000
sq it steel building at a land and building value of $250,000. Big Lake aggressive to give
land and partner with contractor to construct a 7,500 sq it block building. States Big Lake
taxes are lower. Becker can do metal building and aggressive. Liked Monticello but didn't
find very aggressive for his needs as Koropchak did not oITer TIF.
1) Twin City Die Castings - The company has altered its design of the facility by removing
the steel curved tower and the glass walkway to reduce the costs incurred to comply with the
fire codes of a magnesium process f~tcility. The square feet of the oflice and manufacturing
facility remain the same and should not affect the tax increment generated, this is a pay-as-
you-go.
g) April 26 - Wolfsteller and Koropchak attended a meeting of Wright County
Administrators and Economic Development Professionals at the Buffalo County Club.
h) Kraus Anderson - Will be marketing the City of Monticello to Bruce Halbasch, Vice
President of Marketing, on May 4, 11: 15 to 11 :40 am. Arrangement through Heidi Pepper,
Wright County Partnership.
i) Billie Kroll - Voice mail from Billie relative to Intercomp's decision to remain and lease
additional space in Plymouth. Pcrhaps in the future will move out and construct own
facility.
j) Profile Powder Coating - Platting in process, TIF plan being prepared by Ehlers, public
hearing for state grant on Council agenda May 8. EOA reviewing preliminary GMEF
application April 25.
k) Update of community proIile - Koropchak was pleased with the response from businesses
relating to job and wage status and other info requested to update the 1996 profile. Plan to
summary a rate-of-return based on current market rate and total wages paid to amount ofTIF
assistance.
I) Bus/Golf Outing - Marketing committee needs to meet. Price increase of golf $25 to $40.
m) Industrial Breakfast - I Iosted by the Chamber was scheduled for April 27, 7:30 a.m. at
the Community Center.
12.
Other Business.
None
13.
Adiournment.
A MOTION WAS MADE BY BRAD BARGER AND SECONDED BY BOB
MURRA Y TO ADJOURN THE MEETING AT 8:30 P.M. Motion carried.
?IL
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RA ~ Chair
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