HRA Minutes 08-02-2000
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MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, August 2, 2000 - 7:00 p.m.
City Hall - 505 Walnut Street - Bridge Room
Members Present:
Chair Darrin Lahr, Vice Chair Dan Frie and Brad Barger
Members Absent:
Stcve Andrcws, Bob Murray and Council Liaison Brian Stumpf
Officers Present:
Treasurer Rick Wolfsteller, Executive Director Ollie Koropchak and
Recorder Lori Kraemer.
GUESTS:
Brad Johnson, Lotus Real Estate
Barry Fluth, BBF Properties
Jay Eller, Twin City Die Castings
Bruce Starook, Twin City Die Castings
.L Call to Order.
Chair Darrin Lahr called the meeting to order at 7 p.m.
2.
Consideration to approve the HRA minutes of July 5. 2000.
A MOTION WAS MADE BY BRAD BARGER AND SECONDED BY DAN FRIE TO
APPROVE THE MINUTES OF Tl-IE HRA MEETING Of JUL Y 5, 2000. Motion
carried.
3. Consideration of adding al!enda items.
6A. Consideration to hear Brad Larson regarding the Amoco site.
4A. Consideration to ap{lrove a resolution amendinl! the Contract for Private
Development by and between the Authority. the City. and Twin Citv Die Castings
Companv.
Ollie Koropchak, Executive Director, introduced Jay Eller and Bruce Starook of Twin
City Die Casting, who presented the members with drawings of their revised plans f()r
their project. Mr. Eller stated that they arc over budget by approximately $1 million due
to increased construction costs in order to comply with the lire code plan, and therefore
the company elected to revise the construction plans to reduce costs. He stated they
eliminated the helix concept over the office area which would have been metal and
stainless steel depicting that they are in the metal business. Eller stated that they actually
added about 850 sq. ft. more office space
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HRA Minutes - 8/2/00
Eller stated that TCDC is going to be adding aluminum as well as magnesium projects,
noting that they have not yet secured a magnesium project. They are hoping to be in
production in mid September and additional people will be hired soon. Eller stated that
personnel from all over the US visited the new site in Monticello and were very
impressed, whieh has lead him to promote this concept all over the world.
Koropchak asked the Commissioners to approve the resolution amending the completion
construction date from September I, 2000, to December 1, 2000. Koropchak stated two
issues for the I IRA to be concerned about: First: Timing. The minimum improvements
for Phase I to be completed for a full assessed value of January 2, 2001. Secondly:
Assessed Value. The TI Cash flow was based on 36,000 square footage facility (Phase I)
and the assessed value of a typical manufacturing facility.
A MOTION WAS MADE BY BRAD BARGER AND SECONDED BY DAN FRIE TO
APPROVE THE RESOLUTION AMENDING THE CONTRACT FOR PRIVATE
DEVELOPMENT BY AND BETWEEN THE AUTHORITY, 'fHE CITY, AND TWIN
CITY DIE CASTINGS COMPANY. Motion carried.
5. Consideration of items removed from the consent agenda for discussion.
Koropchak removed item 4A from the consent agenda.
6.
Consideration to hear a conceptual plan for redevelopment of the Amoco West
Broadwav/plus site and a motion authorizing execution of a Preliminary
Development Al!reement bctween thc HRA amd Barry Fluth.
Ollie Koropchak, Executive Director, reminded the members that this item was tabled at
the July 5 HRA meeting. Koropchak provided supporting data from the July meeting
agenda and reminded the members of the importance on keeping this project on a timely
progression because of the five-year knock out rule of June 2002. Koropchak also noted
the desire to include some other properties with the current Amoco site.
Brad Johnson, Lotus Real Estate, provided information on their concepts/ideas lor this
site. The Amoco site would be a 2-story structure with about 7 to 8 apartments with the
lower level designed for office or retail with approximately 5,700 sq. ft. He stated that
this would bc the first phase of the project. Phase II consisting of 4 to 8 townhouse units
with 4 accessory units.
Brad Johnson and Barry Fruth are asking the HRA to sign a preliminary development
agreement with them for a determined period of time whercas the City would work
exclusively with Johnson and Fluth on the development of this project. Koropchak
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HRA Minutes - 8/2/00
advised that it is recommended by Attorney Bubul to use the Preliminary Development
Agreement typically used by the HRA. Section 6 of the agreement defines the effective
date of the agreement which can be extended later and Section 9 grants exclusive rights.
Project cost and TIF cash flow analysis by our consultant firm would be covered by the
$5,000 deposit and keeps the project moving f()l"ward.
Discussion involved the time period for this project which was stated to be approximately
3 to 4 months which would put it at early spring.
Brad Larson addressed the liRA noting his involvement in various revitalization projects
within the City. He noted that Dan Carlson was also interested in rehabing the Amoco
site and asked that if the HRA is looking solely at Brad Johnson's proposal there needs to
be a sunset date. Larson also suggested that if the HRA is looking more at an
owner/occupant of this site they should contact Dan Carlson.
The members stated that owner/occupied is desirable and also that what Johnson & Fluth
have proposed is desirable to the City Council, EDA and local lenders. Larson supported
the II RA concept of a larger project than just the Amoco Station. The HRA also
suggested the two parties look for a potential win/win situation for both interested parties.
A MOT'ION WAS MADE BY BRAD BARGER AND SECONDED BY DAN FRIE
AUTHORIZING EXECUTION OF A PRELIMINARY DEVELOPMENT
AGREEMENT BETWEEN THE HRA AND BARRY FUJI'll (MASTERS FIFTII
A VENUE INC.) WITH AN EFFECTIVE DArE OF DECEMBER 2,2000 AND A
$5,000 DEPOSIT. Motion carried unanimously.
14.
Adiourn.
Dan Frie was excused from the meeting at 8: 15 p.m. Items 7 through 11 were tabled as
there was no longer a quorum and the meeting was adjourned at 8:25 p.m.
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