HRA Minutes 06-07-2000
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HRA Minutes - 6/7/00
MINUTES
MONTICELLO HOlJSING AND REDEVELOPMENT AUTHORITY
Wednesday, .June 7, 2000 - 7:00 p.m.
City Hall- 505 Walnut Street - Bridge Room
Members Present:
Chair Darrin Lahr, Vice Chair Dan Frie and Brad Barger
Bob Murray arrived at 8 PM.
Absent:
Steve Andrews and Council Liaison Brian Stumpf
Officers Present:
Executive Director Ollie Koropchak, Deputy City Administrator Jeff
O'Neill and Recorder Lori Kraemer.
GUESTS:
HRA Attorney Steve Bubul, Kennedy & Graven.
Brad Johnson, Lotus Real Estate.
Barry Fluth
1. Call to Order.
Chair Darrin Lahr called the meeting to order at 7 PM.
2.
Consideration to approve the HRA 5:30 and 7:00 p.m. minutes of May 3. 2000.
^ MOTION WAS MADE BY DAN fRIE AND SECONDED BY BRAD BARGER "1'0
APPROVE THE MINUTES OF TIlE HRA, CITY COUNCIL AND LENDERS
WORKSHOP ON MAY 3, 2000. Motion carried.
A MOTION WAS MADE BY DAN FRIE AND SECONDED BY BRAD BARGER TO
APPROVE THE MINUTES OF THE REGULAR HRA MEETING OF MAY 3,2000.
Motion carried.
3. Consideration of adding agenda items.
Committee updates were added as item 11 a.
4. Consent Agenda.
None
5. Consideration of items removed from the consent agenda for discussion.
None
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HRA Minutes - 6/7/00
6.
Considcration to hcar a preliminary concept proposal for redevelopmcnt of the Amoco
West Broadway site.
Ollie Koropehak, Executive Director, reminded the members that Mr. Johnson was
interested in talking to the HRA about the redevelopment orthe Amoco site. At the
dircction of the joint meeting between the liRA, Council and local lenders, the HRA was
encouraged to take steps toward redevelopment of the Amoco site and to research the
potential to enlargc the targeted redevelopmcnt site.
Brad Johnson advised the lIRA members of his interest, together with Mr. Barry Fluth, in
possibly entering into an agreement with the HRA to work together on redeveloping this
site. Mr. Johnson noted some of the options that could be looked at such as first Hoor
mixed commercial with the uppcr two floors residential with detached garages (if there is
a demand for residential), and asked for the HRA's input. He also noted that there are
several other houses on that lot that there could be a potential to purchase, as well as the
possibility of looking even further up the block to include more of the neighborhood.
Mr. Johnson also stated that he did talk to the owner of the Amoco site who stated he may
be intercsted in working with someone on a project. Some issues discussed with this
property included the possible necd for hazardous waste cleanup and the question or
whether there wcre monitoring tanks in place. Mr. Johnson advised the members that
Barry Fluth has an interested in real estate investments in Monticello.
Mr. Johnson proposed to the HRA entering into preliminary development agreemcnt
which would give Mr. Johnson/Mr. Fluth the exclusive right to work to develop thc
Amoco site, with HRA assistance, for at least 6 months. Mr. Johnson stated he could
put together some ideas on this site immediately and would report back to the lIRA at
their ncxt regular mecting on July 5. After further discussion, Mr. Johnson statcd that
they would also possibly be interested in redeveloping Blocks 52 and 54 in the future.
7.
Consideration to discuss the recommendation or the joint meeting, hear further
explanation ofthc flJur-year knock down rule and five-year knock out rule bv Attorney
BubuL and to authorize to proceed redevelopment of the Amoco site.
Ollie Koropchak, Executive Director, noted that at the direction of the joint meeting
between the HRA, Council, and local lenders, the HRA was recommended to take steps
toward redevelopment of the Amoco site and to research the potential to enlarge the
targeted redevelopment site. Dan Frie reported at the joint meeting he was asked to
contact the owner or the Amoco site relative to the asking price which is $175,000. The
owner was not interested in the HRA demolishing the structure only as this reduces the
value of the property and the selli ng price.
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HRA Minutes - 6/7/00
Prior to addressing the HRA check list, Attorney Bubul cxplained the four-year knock
down rule (ability to collect incremcnt Irevenues])and the five~year knock out (ability to
finance lexpenditures]) rule, as well as thc 4 J rule. Mr. Bubul proyided written
information explaining these rulcs.
Koropchak provided information regarding the expected tax increment assessed in
January of 1999. Also notcd was that this is in effect until June of 200 1, and that the
HRA has until Fcbruary of 2002 to get all information regarding that parcel to the County
Auditor. Mr. Bubul stressed the need to keep on top of all paperwork showing activities
that qualify that district, i.e. building permits, memos from statl as well as anything that
may have been stimulated by ccrtain activity, i.e. the Marquette Bank selecting thc site
they did due to the location of the new community ccnter. Bubul also explained the
difTerent scenarios on what would happen if County Auditor were to turn the City down
regarding TIF. Koropchak also went through a chcck list of items to determine prior to
taking action on a possible preliminary agreement with Mr. Johnson regarding the Amoco
site.
A MOTION WAS MADE BY DAN FRIE AND SECONDED BY BOB MURRAY TO
ACTIVELY PURSUE THE DEVELOPMENT OF THE AMOCO SITE. Motion carried.
8.
Consideration to discuss the recommendation or the ioint meeting, to determinc objective
of the scattered housing program, and to recommend establishment of a eommunity task
forcc.
Ollie Koropchak, Executive Director, reminded the members of the dircction given at the
joint meeting between the HRA, Council, and local lenders, statl was encouraged to
pursue a scattered house program for the City of Monticello. A couple of years ago this
was a City Council priority item; however, funding (estimated $200,000) was not
approved for thc program. It was suggested to develop criteria/guidelines prior to the
Council approying funds for the program. Later, $20,000 was requested for a I-lousing
Study but the request was denied.
Objectives the City of Monticello wants to accomplish with the development or a
scattered housing program were again discussed including incrcase exterior aesthetics,
eliminate substandard housing, eliminate unsafe and hazardous housing, provide
atTordable housing, etc.
Ollie Koropchak and Jeff O'Neill discussed some of the programs in place at such cities
as Richfield, Robbinsdale and Crystal where public funding sources came from either or a
combination of Special Legislation, Community Development Block Grants, and/or IIF.
Copies of some information retained from Riehfield, Crystal, and Big Lake were
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HRA Minutes - 6/7/00
provided.
Some planning steps to establish a program were discussed such as establish purpose of
the scattered housing program, define objectives or goals to accomplish, preliminary
assessment of existing housing stock, determine type of housing programs, determine
sources for public funding of programs, develop criteria for program and develop
marketing plan for program.
It was suggested forming a Community Task Force Committee of Jive members made up
of the following local professions: Lender, home builder, developer/contractor, real estate
agent, appraiser, and a HRA/Planning Commissioner to pursue researching a scattered
housing program.
Attorney Bubul also provided his input on pursing different progrmns for funding that he
is familiar with. Bob Murray stated taking this issue to the Planning Commission and
having a member backing this item when presenting it to the City Council. Dan Frie
volunteered to work with Jeff O'Neill as a subcommittee to compile information for the
next HRA meeting in July.
A MOTION WAS MADE BY BOB MURRA Y AND SECONDED BY DAN FRIF TO
TABLE ANY THIS ITEM UNTIL THE REGULAR MEETING IN JULY. Motion
carried.
9.
Consideration to amend the BRA Rvlaws as it relates to the selection and compensation
of the Executive Director of the liRA per the Bylaws.
Ollie Koropchak, Executive Director, advised the members of a previous motion to
amend the Bylaws relative to the o1Tice ineeting place of the HRA, which was done at
that time. Previously, the commissioners recommended amending thc Bylaws,
ARTICLE V., compensation of the Executive Director of the HRA as well. With the
compensation for the Executive Director of the BRA determined and disbursed from the
City funds in accordance with the City's Comparable Worth Program, the commissioners
requested the Bylaws be amended for consistency.
Attorney Bubul provided the language to amend the HRA Bylaws accordingly as well as
provided further insight.
A MUrTON WAS MADE BY BRAD BARGER AND SECONDED BY DAN FRIE TO
ADOPT A RESOLUTION AMENDING TIlE liRA BYLAWS AS PREPARED BY
ATTORNEY BUBUL. Motion carried.
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10.
Consideration to authorize payment of the monthly HRA bills.
A MOTION WAS MADE BY DAN FRIE AND SECONDED BY BRAD BARGER TO
AUTHORIZE PAYMENT OF THE MON"fHL Y BRA BILLS. Motion carried.
II.
Consideration of Executive Director's Report.
a) Portion Lots 6, 7, and 8, Block 7 (Corner of Locust and 6 Street) - Brad Johnson is
possibly interested in a redevelopment project in this area.
b) Bus Tour and Golf Outing - Scheduled for June 14. About 95 invitations mailed.
Response as of June I - 36-bus tour/lunch and 26-golf. Promotional package being
updated. Tour consist of commerciallindustrial sites only.
c) Legislative Update Seminar - Executive Director attended a seminar sponsored by
Kennedy & Graven on June 2.
d) 301 front Street - Had. telephone call from Mrs. Rice relative to interest of City to
acquire home along Front Street iftheir decision is to relocate. Just inquiry at this time.
Encouraged. her to come before the HRA and informed her of procedure to authorize an
appraisal, etc. This house is located within the 5-year plan for acquisition as
recommended by the North Anchor Committee. Properties in Block 54 and along the
river were designated as priority.
e) TIF District No. 1-22 - As you know with the 5-year knock-out rule ifthe }-I RA has no
binding contract for expenditures or eligible expenditures paid for the projected tax
increment, the HRA would retire its existing debt and decertify the district early. "fhis
means the liRA would lose their ability to maximize the use of the tax increment. A plan
by the liRA to acquire properties in the 5-year plan area as recommended by the North
Anchor may be advantageous.
t) 1'1 F District No. 1-20 - Copy ofletter to Mr. Komarek relative to completion date per
the Contract. Also provided a copy of the estimated market values as of January 2,2000
for Phase I and Phase II of the Contract. The overall goal of the HRA, to remove blight
and create quality market rate housing, is certainly being accomplished. It is the intent of
the developer to begin construction of the 4-plex on Lots 17 and 18. The twin+home
construction and market is well ahead of the Contract completion date for the entire area.
The 4-plex market has been slower.
g) TIF District No. 1-27 - Copies of letters to appropriate individuals relative to the J. J.
Company (Profile Powder Coating Company) project were provided. As noted the
project did not receive private funding and the public funding applications are to remain
on file. Reimbursement of the remaining balance ofthe HRA $5,000 deposit has not
occurred as invoices from Ehlers and Kennedy & Graven have not been submitted to the
HRA. The land purchase agreement has been canceled and the request for Plat approval
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HRA Minutes - 6/7/00
is on hold.
h) TIF 1-5 Modification inquiry - Copy of a letter to Gus Lafromboise was provided.
i) Skipper's Pool - Letter of May 5 was provided. Received Certificate ofInsurance and
Lcase Agreemcnt which should be executed soon. Checking iflease fee of $610.87 has
been submitted.
j) Financial Consultants - Follow-up letters.
k) HRA/City Reports to City Auditor t()f 1999 - Should be receiving updated Quick TIF
program from Ehlers so I can begin 1999 reports.
1) Twin City Die Castings - EDA and City loan closings scheduled for June 8, 2000.
Ila.
Committee Updates.
Council Liaison Brian Stumpf was at Joint Fire Board Meeting this evening so no City
Council update.
Marketing - Golf outing update.
Community Center - Bob Murray - Provided with a summary from Kitty Baltos,
Community Center Director as to membership and daily users.
12. Other Business.
None
13.
Adjournment.
A MOTION WAS MADE BY BOB MURRA Y AND SECONDED BY DAN FRIE TO
ADJOURN TIlE MEETING AT 9:25 PM. Motion carried.
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