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HRA Minutes 09-06-2000 . ,I . I-IRA Minutes - 09/06/00 MINUTES MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY Wednesday, September 6, 2000 - 7:00 p.m. City Hall- 505 Walnut Street - Bridge Room Commissioners Present: Chair Darrin Lahr, Vice Chair Dan Frie, Brad Barger, Steve Andrews, Bob Murray and Council Liaison Brian Stumpf Officers Present: Treasurer Rick Wolfsteller, Executive Director Ollie Koropchak, Deputy City Administrator Jeff O'Neill and Recorder Lori Kraemer. 1. Call to Order. Chair Darrin Lahr called the meeting to order at 7:00 p.m. 2. Consideration to approve the lIRA minutes of August 2. 2000. DF/BB A MOTION WAS MADE BY DAN FRIE AND SECONDED BY BRAD BARGER TO APPROVE THE MINUTES Of THE HRA MEETING Or: AUGUST 2,2000. Motion carried unanimously. 'l -, . Consent Agenda.. None 4. Consideration of adding or removing agenda items. Consideration to hear a proposal from Ed Kauffmann. This item was placed as SA. Discussion regarding the HRA Walnut Street I-louse. This item was placed on the Executive Director's report. 5. Consideration of items added or removed 1[om the consent agenda for discussion. N/ A SA. Proposal by Ed Kau1Tmann regarding a proposed development located between 3'd Street and Minnesota Street. Ed Kauffmann addressed the members regarding the 5 lots between 5th and 6th Streets along Minnesota Street, several of which are considered to be substandard. Kauffmann is proposing to purchase them with TIF assistance to build 20 condominiums, two story with 10 units top and bottom, detached garages in the back with an alleyway to keep cars from parking on the street, low to moderate income and owner occupied. Kauffmann noted that this is a great location, would be desirable for seniors with minimum maintenance. Kauffmann reminded the liRA that he proposed this approximately a year ago, but at that time there were approximately two owners that were not willing to sell at that time. He does state however, that they are now willing to sell. He has also provided purchase agrcenlcnts for .TeLl O'Neill to review. -1- . . , HRA Minutes - 09/06/00 There was discussion on the possibility of condemning any of the homes and O'Neill stated one of the properties would probably qualify. Kauffmann states he has purchase agreements on three of the properties and that he owns the vacant lot. Ollie Koropchak, Executive Director, indicatcd that approximately a year ago she ran some figures for Mr. Kauffinann but she would need to update them again, as well as check with the consultant. Koropchak reminded the HRA that previously the mcmbers were interested in Mr. Kauffinann' s proposal. Koropchak did state the projeet didn't seem to qualify as a redevelopment district. Seventy pcreent of the parcels must consist of IYYo improvements and only two of those lots mcet the criteria. Koropchak also mentioned the option of a housing district whcre the developer would need to securc a private redevelopment contract with the II RA and would need to comply with thc criteria for a housing district. The size ofthc lots were also discussed, indicating that thcy arc quite small, but O'Neill stated they would be rc~platted with zero lot lines. Another concern was the proposal of single car garages, but Mr. Kauffinann statcd hc was not aware that per the City code there needed to be 2 car garages or something to offset the lack of. O'Neill did state however. that the code states 2 car garages for single and two family homes, but not for this type of project. Lahr advised that the HRA would need to review this concept further as to what would fit on this property and the kind of financing the HRA could do. Hob Miller, Mr. Kauffim1l1n's attorney, stated his concern regarding the garages and also that one of the properties has a renter and there could be relocation costs involved. O'Neill stated he would get Mr. Kauffmann an answer that evcning regarding the garages. It was suggested that it would be better to reduce the density and add 2-ear garages, after Mr. O'Neill returned from checking into the criteria on garages. 6. Continued - Consideration to hear progress relative to research of purpose/obiective and funding fl)!, a scattered housing program and a motion of action/direction if so necessary. Dan Frie stated that there had not bcen any further progress on this item. He noted a meeting was held prior to the August J-IRA meeting. It was noted that this would be a good project for the 6th Street and Minnesota Street area. Frie states that the process is slow and the HRA is probably looking at approximately 2 houses per year. They need to identify the houscs that arc eligible for this type of program, stating they are targeting the homes with a value of $65,000 or less. Frie stated that the process would be to draft a letter and scnd to potcntial owners. I f they would get interest from an owner. it would be at that timc that the I IRA would apply fl1r a grant to fund the purchase ofthc home. It was decided that Koropchak and O'Neill would get together and work on the targeting of homes prior to Frie and O'Neill spcaking with any -2- . , . HRA Minutes - 09/06/00 ovvners of the properties. 7. Consideration to review recommcnd.ed changes to the HRA Business Subsidy Criteria and. call for a public hearing. Koropchak provid.ed the staffreport stating that previously the lIRA commissioners d.irected the HRA Attorney to d.raft changes to the HRA Business Subsidy Criteria increasing the wage level to at least $9.00 per hour, exclusive of benefits and other changes, for compliance of the most recent adopted legislative changes. A copy of the criteria with the proposed changes was sublnitted.. Attorney Bubul's suggestion is to insert ..... wage of the higher ol$9. 00 per hour, or at least 160% of the federal minimum wage ....... The language of the higher allows for future changes should. the federal minimum wage. Koropchak stated that 160% of the federal minimum wage is part of the I'lF Green Acres Law. The members were not clear on the language proposed by Bubul and would like to see the language be more defined. The members requested that Koropchak ask Attorney Bubul 1'(W the criteria. The action need.ed. by the HRA, if satisfied by the recommend.ation, was to call for a public hearing to amend the criteria. A MOTION WAS MADE BY STEVE ANDREWS AND SECONDED BY DAN FRIE '1'0 CALL FOR A PUBLIC HEARING FOR THE OCTOBER 4, 2000 HRA MEETING, FOR ADOPTION or A RESOLUTION AMENDING THE BUSINESS SUBSIDY CRITERIA FOR TilE IIOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO, MINNESOTA, SUBJECT TO CLARIFICATION BY ATTORNEY BUBUL. Motion carried unanimously. 8. Consideration to review 1999 Authority Summary Report and consideration to prioritize HRA goals and expenditures. Koropchak provided the staff report and informed the members that the attempt of this item is two fold: One, to id.entify dollars available to the lIRA for development or redevelopment and. the other to define and prioritize HRA goals and expend.itures. HRA objectives: Ind.ustrial land acquisition, downtown redevelopment and scattered housing. The members inquired. if the HRA could. use this money for the scattering housing program and Koropchak advised that would look into this. Koropchak also stated that excess tax increment needs to be earmarked soon. Koropchak then went through and explained these reports. Authority Report Summary identifies differcnce between Authority reports to State Auditor and finance reports, projections, and balances by districts. Summary of tax increment available for development and red.evelopment projects. This identifies revenue from districts d.ecerliJied, excess revenue from older redevelopment -3- . , . HRA Minutes - 09/06/00 districts which have no pooling restriction, and suggests districls for decertiiication in 2001. Although the Authority report and Finance report have some discrepancies, these differenees will not impact the excess revenues suggested tl.)r expenditures. The suggestions were reviewed with the HRA Attorney. It is important for the HRA to eannark the tax increment from District No. 1-5 as the bonds are paid and to assure the HRA of the use of the dollars and to avoid return of dollars to the County or to decertify. Perhaps its time for the HRA to prioritize its goals and expenditures within the downtown district given the need to expend funds by June 2002. The liRA has treated each project within the downtown district on its own merit. Eligible expenditures are acquisition, demolition, relocation costs, site improvements, public improvements and public utilities. To date and within the downtown district, the HRA authorized expenditures for demolition, relocation, and site improvement costs associated with south anchor, 7Y% of sidewalk cost along Walnut Strect between 4th Street and community center, and pathway development along railroad track from Locust or Linn Street to Walnut Street associated with Sunny fresh expansion, acquisition of homes within north anchor, and $11,250 annually toward community center. Koropchak advised that the decisions of the I IRA were to define their goals and earmark excess TIF revenues. They c1iseussed the priorities as heing the Amoco site and the North Anchor. Amoco is in the works so the next stcp would be to possibly acquire the three or fi.)Ur pareels they had targeted on the map, being in the north half of Block 54, and Blocks 64, 63 and 62, and in that order. It was also noted that the HRA could do a pay as you go with a developer to meet the June 2002 deadline. 9. Consideration to hear an update on high-speed internet access tl.)r Monticello businesses and residents and its importance as a marketing tool. (Steve Andrews) Steve gave a brief summary regarding this item noting it is not available at an atlordable price at this time. He explained a DSL circuit and the benefits of the high speed internet. The advantage is that they would not have to install any new wire hut it is a high investment for the phone company. Steve has heen in contact with TDS as well. The HRA felt this could be a good marketing tool and Koropchak suggested that Steve keep in contact with the phone company as to this possibility. Another suggestion was to invite someone from the TDS, Bresnan Cable and an installation company to an IDC meeting to discuss this idea. Koropchak was directed to eheek-out the new technology Grant through DTED. 10. Considcration to authorize payment of the monthly HRA bills. A MOTION WAS MADE BY DAN FRIE AND SECONDED BY STEVE ANDREWS TO AUTHORIZE PA YMENT OF THE AUGUST I-IRA BILLS. Motion carried unanimously. -4- I--IRA Minutes - 09/06/00 . A MO'flON WAS MADE BY DANFRIE AND SECONDED BY BOB MURRAY TO AUTHORIZE PA YMENT OF TI-IE SEPTEMBER HRA BILLS. Motion carried unanimously. 11. Executive Director's Report. , Executive Director Koropchak updatcd the members on a meeting held with Hans Hagen Homes to introduce Hans to Monticello's revitalization plan and particular the redevelopment area of the north anchor (Block 54); the Amoeo+ site advising that the preliminary Agreement was executed and the $5,000 deposit received from Barry Fluth; Farrell Gas site in that Silver Creek Development withdrew from the project and the city is contacting other developers and continues conversation with Silver Creek; the EDA approved two facade improvements for the Preferred Title building and Sweetest Things (previous Companion Pets building) on West Broadway; IDe Banquet is Tuesday, September 26, Vintage Grill; Rotary presentation regarding wage, job creation, liRA return of investment, and other Monticello demographics to the Rotary Club on August 14; Koropchak's mecting with previous MCP Director and other neighbor representative on September 5; the 2001 City Budget - Budget time is in process and the Council and staff has met once; Proiile - Copy of Ictter and reimbursement check; Industrial inquiries slow this month; 25-30 brochures mailed; I-I RA I louse on Walnut St regarding a leak that is dripping on the new carpeting that the renter installed. The members suggested that the renter fix it and deduct it from the rent. Koropchak suggested Gary Anderson check on this as well. lIRA was comfortable in offering up to $100 off the rent to repair; II Window put a sign up that their building was for sale, but relayed to Koropchak that they are not moving but arc looking for an investor to buy them out and then re-lease to them in order for them to free up their cash to develop new product lines. There was further discussion among staff and II RA members regarding Kau11inann' s proposal and that the developer should design with lesser units and double garages in order L()r the HRA to be interested in this project. Rick Woll'steIler also stated the Mr. Kauffmann had told him that he would not be willing to pay the $5,000 application fee. 12. Consideration of committee reports: There were no updates. 13. Other Business. None 4. Adjournment. A MOTION WAS MADE BY BOB MURRAY AND SECONDED BY BRAD BARGER TO ADJOURN THE MEETING AT 9:45 PM. Motion carried unanimously. . Pr~~=- ~Chair -5-