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HRA Minutes 10-04-2000 . I . MINUTES MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY Wednesday, October 4, 2000 - 7:00 p.m. 505 Walnut Street - Bridge Room Members Present: Chair Darrin Lahr, Vice Chair Dan Frie, Brad Barger. Steve Andrews. and Council Liaison Brian Stumpf Members Absent: Bob Murray Officers Present: 3. 4. 5. 6. Guest: 1. 7 Treasurer Rick Wolfsteller, Executive Director Ollie Koropchak, Deputy City Administrator Jeff O'Neill and Recorder Lori Kraemer Scott Rolfe. Skipper's Pools & Spas Call to Order. Chair Darrin Lahr called the meeting to order at 7 PM.. Consideration to approve the 1.1 RA minutes of September 6, 2000. A MOTION WAS MADE BY BRAD BARGER AND SECONDED BY STEVE ANDREWS TO APPROVE THE MINUTES OF THE SEPTEl'vIBER 6, 2000 !-IRA MEETING WITH A CORRECTION MADE TO PAGE 2, PAR.AGRAPH 5, OMITTING SENTENCE NUMBER 2 REGARDING MR. KAUFFMAN SECURING PROPERTIES. Motion carried unanimously. Consent Al!enda. None. Consideration of adding or removing consent al!enda items. None. Consideration of items added or removed from the consent al!enda for discussion. None. Public Hearing - Consideration to adopt a resolution amending the liRA Business Subsidv Criteria. Ollie Koropchak. Executive Director. provided the staff report regarding the consideration to amend the HRA Business Subsidy Criteria based on the recommendations of the !-IRA Attorney. A draft copy of the criteria with the proposed amendments by Attorney Bubul was provided f()r revie\\. The proposed amendments addressed an increase of the wage le\'(,~1 and other criteria to meet the requirements set by the Minnesota Legislators. Chair Darrin Lahr opcnt::d tl1t:: public hearing. Hearing no comments, the public hearing was cIost::d. - I - . I . HRA Minutes - 10/4/00 A MOT'ION WAS MADE BY STEVE ANDREWS AND SECONDED BY BRAD BARGER TO ADOPT A RESOLUTION AMENDING THE !-IRA BUSINESS SUBSIDY CRITERIA. Motion carried unanimously. 7. Consideration to discuss renewal of the Lease Aureement between the !-IRA and SPS Services, Inc. (Skipper's Pool) Ollie Koropchak, Exccutive Director. provided the staff report regarding the lIRA Leasc Agreement with Scott Rolfe. SPS Services, Inc. The duration of the lease began AprilS, 2000 ending September I, 2000. By no later than August 31, 2000, the lessee shall cause the drainage and removal of all pools and spas from the Premises...... Lessee also shall be charged and hereby agrees to pay $25 for each additional 24-hour period, or any part of 24 hours. that Lessee occupies the premises after the expiration or proper termination of this agreement........The Certificate of Liability Insurance is etTective from 5/1 /2000 to 5/1/2001. Koropchak spoke with Mr. Rolfe the \veek of September 18 to see if he had removed the pools and spas from the premises to which he informed that he had not. and that he wished to extend the lease and discuss the collection of the $25 pCI' day fee. Rolfe stated it was his intcnt to try this as on a trial basis and if all went welL to extend his conditional use permit. Lahr noted the HRA can only allow seasonal use to which Rolfe stated this was not storage but a display and that it was not visible without coming through the store and into the back fence. It was discussed as to why, if this was the applicant's intent from the start. did he wait until after the lease had expired and the HRA contactcd him to advise that he would be asking to renew his conditional use permit. There was discussion that initially, due to the liability involved, this was to be a trial period and Rolfe was to comc back to the HRA when this permit expired. There was further discussion as to the possibility of this property being leased year around. whether this lot could be rented to Rolfe for the amount equal to the taxes, or possibly the lease be renewed evcry six months. Koropchak noted that these questions would have to be vcrified by the HRA's attorney. Lahr and Andrcws stated their opinions had not changed in that they were not comfortable with having (filled) pools on display on that property. Barger and Fric stated thcir desire to support the dO\mtown bUSinesses and that they prefcrrccl the lot be uscd rather than sit empty. Jeff O"NeiIL Deputy City Administrator. stated that this would necd to be ajoint conditional LIse pcrmit application by the !-IRA and wIr. Rolfe. and as the owner. the I-[RA as would IKcd to start thc process. A MOTION WAS MADE BY BRAD BARGER TO EXTEND THE LEASF. SUBJECT TO MODIFICATION AND SUBSEQUENT COSTS THAT T!-IE !-IRA MA Y INCUR, AND SUBJECT TOnIE CONDITIONAL USE PERMIT. DAN FRIE SECONDED THE MOTION. With a 2 to 2 vote. Darrin Lahr and Steve Andrews voting in -2- . I . HRA Minutes - 10/4/00 opposition. the motion failed. After further discussion, Scott Rolfe asked that the $25 per day fee cease until this matter is settled. A MOTION W AS MADE BY DARRIN LA!-IR AND SECONDED BY STEVE ANDREWS TO TABLE ANY ACTION ON THE PENALTY UNTIL TIlE NEXT REGULAR SCHEDULED /--IRA MEETING OF NOVEMBER 1,2000. Motion carried unanimously. 8. Continuation - Consideration to hear nrollress relative to research of purnose/obiective and fundin!! t()r a scattered housinu pro!!ram and a motion of actionldirection if so necessary. Commissioner Frie updated the liRA on the progress he and O'Neill made in identifying potential homes for a scattered housing program. He advised that they took digital pictures. collected market values. owner names. etc. and are in the process of putting together a packet of information for the HRA members to review. It was again noted that grant money is available through the state for demolitions. etc., and the agency working with the grant program actually handles the writing of the grant. It was explained by Frie how the grants \\ork and that the City would be in cooperation with the HRA in granting reduced huilding permit fees, etc. as well. It was noted the grant money has to be used within 2 years. A letter was to be drafted to the property owners advising them vvhat the City's intent was and compiling the information hefore applying for the grant. They advise first to define what types of housing the City is looking for and what the City is looking for to make the houses compatible. This will be discussed at the next HRA meeting. 9. Continuation - Consideration to finalize 1999 Authoritv Cashtlows and nrioritize Authoritv !loals and expenditures. Ollie Koropchak Executive Director provided the staff report regarding the recap of available tax increment by district which was presented prev-iously and that the liRA agreed to proceed vvith the Amoco site redevelopment and hegin the process for acquisition of the north lots of Block 5-+ and Block 6-+. 63. and most northeasterly lot of Block 62. Since that time. Wolfsteller and Koropchak met with Mark Ruff Ehlers & Associates. who concurred \vith the use of the excess TI and cunfirmed '-I- and 5 year rules. Dan'in. Dan. Jeff and Koropchak met v\ith Hans I lagen Homes relative to his interest for residential rede\elopment within the North /\nehor area. A second meeting was held and preliminary concepts were presented. All Cuuncil and I IRA memhers were int()t"med of the concept. At the second meeting. the larger scope of the North Anchor. the retail/commercial component. was addressed and the firm of KKE was suggested. -3- . HRA Minutes - 10/4/00 Darrin, Dan, Jeff and Koropchak met with KKE who will test the market and interested developers lor ideas or concepts which best attract a draw to the North Anchor area. Of the three sites: Amoco. River Street/Broadway commercial. and Front Street housing and given the time constrains; the River Street/Broadway commercial development would generate the greater amount of tax increment; however. now competes with the retail/commercial market for the Farrell Gas site. The hOllsing development creates the density to support retail/commercial development. Office space for professionals such as attorneys, accountants, real estatc agents would generate a draw for employment and potential housing, restaurant. and other retail/commercial development. The HRA Chair requested a recap of tax increment available for redevelopment of the North Anchor and estimated revenues and expenditures. Additionally, he requested the HRA begin to draft a list of the economical benefits associated with the redevelopment or the North Anchor project. I Darrin and Koropchak have met with O'Connor and Bostic and have a meeting scheduled with the Carlson's tor October 11. The purpose of these meetings is to inform the property owner of the lIRA's interest to acquire their prope11y, the need for the HRA to update or obtain an appraisal. and that a relocation advisor will be contacting them to advise them of their relocation rights and benefits. It is f()r that reason, the HRA. is asked to authorize the hiring of an appraiser and a relocation advisor. The BRA was advised to obtain or update the appraisals prior to making an offer to acquire. Darrin Lahr summarized his meeting with f Ians Hagen. noting Hagen is not looking at closing otf Front St. as he doesn't need the entire block. He does need the river front property. O'Neill noted that a path could be put in close to the river but they would need to watch the removal of trees. Lahr also advised that Hans Hagen had suggested giving the current owners a certain amount of dollars to "spiff up" the apartment building that would not be removed. The types of homes Hagen would desire in that area would be approximately I ,600 to 2,000 sq. ft. units at approximately $ I 50,UOO to $200.000 per . unit. l-Iagen also stated the factor of the lot prices he would be chargcd which would be subtracted from the "quality" of the units. The park area interested him also. Koropchak also noted that several of the members and herself had met with Kathy from KKE who would look into the market and come back to them with inrormation. It was suggested that the HRA have a joint meeting with the Parks Commission assuring them that they were not interested in taking all the park land but to work with them on this project. . Koropchak & Lahr also met with one of the owners. Connor. and advised him that the liRA is moving ahead with this proposal and what he as an owner could expect. Their target is for getting appraisals by the end of Oct. and purchase agreements by January. Sandy Bostic was interested but would like to stay in her home until mid June. Another meeting is set for next week "vith the Carlson's. -4- . I . liRA Minutes - 10/4/00 There was further discussion regarding the types of housing Hans Hagen proposes to put in which would be 10 units on 33' lots. It was asked if this fits the goals of the North Anchor. Koropchak also advised that a tinance plan does need to be in place by Junc 28, 2002 or the lIRA would lose thcir ability to use the funds. Relocation to advise onlv - Ken Helvey: A MOTION WAS MADE BY DAN FRIE AND SECONDED BY BRAD BARGER AUTHORIZING APPRAISER TERRY NAGORSKI TO UPDATE OR OBTAIN AN APPRAISAL FOR THE O'CONNOR. BOSTIC AND CARLSON PROPERTIES FOR SUBMISSION TO THE HRA BY NOVEMBER 1,2000. Motion carried unanimously. A MOTION WAS MADE BY DAN FRIE AND SECONDED BY BRAD BARGER AUTHORIZING RELOCATION ADVISOR KEN HELVEY TO ADVISE O'CONNOR, BOSTIC AND CARLSON OF THEIR RELOCATION RIGHTS. Motion carried unanimously. 10. Consideration to authorize pavment of the monthly HRA bills. A MOTION WAS MADE BY DAN FRIE AND SECONDED BY BRA.D BARGER TO AUTHORIZE PAYMENT OF THE MONTI-IL Y HRA BILLS. Motion carried unanimously. 11. Consideration of Executive Director's Report. Koropchak provided updates on the Kauftinann proposal; the HRA rental house on Walnut SL High speed access to be addressed at thc next IDC meeting; Amoco Site proposal/status; an RFP f()r a company looking at a 300,000 sq. ft. building either in Monticello or St. Cloud; a 100,000 sq. ft. building in Monticello or St. Cloud - no further information; as well as the Chadwick/City negotiations. 12. Committee reports. There were no updates. 13. Other Business. There was no other business. 14. Adiournment A MOTION WAS MADE BY DAN FRIE AND SECONDED BY BRAD BARGER TO ADJOlJRN THE MEETING AT 9 PM. Motion carried unanimously. JrrdlL I RA Chair / -5-