EDA Minutes 06-19-2001
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MINUTES
MONTICELLO ECONOMIC llEVELOPMKNT AUTHORITY
Tuesday, June 19,2001 - 4:00 p.m.
City Hall - Academy Room
Members Present:
Vice Chair Barb Sehwientek, Assist Treasurer Ken Maus, Clint Herbst,
Roger Carlson and Ron Hoglund.
Absent:
Chair Bill Demeules and Darrin Lahr
StaLl Present:
Executive Director Ollie Koropchak and Recorder Lori Kraemer.
Guests:
Steve Grittman, Northwest Associated Consultants
Brian Thickpenny, Primeriea
Pam Campbell, DA T
1. Call to order.
Vice Chair Barb Sehwientek called the meeting to order at 4 pm.
2.
Consideration to approve the Mav 22. 200 I EDA minutes.
A MOTION WAS MADE BY CLINT I IERBST AND SECONDED BY BARR
SCI IWIENTEK TO APPROVE 1'1 IE MINUTES OF THE MAY 22, 2001 EDA
MEETING. Motion carried unanimously.
3. Consideration of adding or removing agenda items. None
4. Consideration to review concepts for Block 35 as prepared by Steve Grittman, determine
next steps, and authorize to proceed if appropriate.
Ollie Koropchak reviewed the discussion from the May EDA meeting where the
commissioners authorized Planner Consultant Grittman to proceed with site concepts for
an overall trash handling and private parking plan within Block 35 and to work with the
Public Works Director and the business owners. Pam Campbell, OAT Chair was present
to hear Grittman's concepts, although they arc site and not design concepts.
Steve Grittman, NAC, provided a presentation with several concepts he had designed.
One concept contained several trash areas, detlning the alley with striped parking which
would pull the parking out to the alley versus head-in parking, and leaving plaza space
with common trash handling areas. Grittman also proposed a second option which would
be to try to create a more remote area for trash, a combination of head-in/banked parking
and alley parking. This area creates a plaza type area where trash enclosures are more
BOA Minutes - 06/19/01
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accessible. Both designs would allow for approximately 25 parking spaces.
Schwientek felt that with the first concept the cars may be parked in the way of trash
handling and possibly the second option was more conducive. Herbst added that he likcd
the concept of having only 2 trash enclosure areas vcrsus 6, the distance is not as
significant, and the accessibility is good. Carlson asked Grittman if the individual owners
own all the way to the alley and they agreed it appears that way.
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Grittman also provided some landscaping ideas as well as photos taken of the back side
of these buildings. lie also provided photos of existing back entrance buildings in other
cities showing their trash enclosures to give the EDA a perspective of what they may be
able to do. "rhey did discuss that gates on these trash enclosures are typically a problem,
and Grittman stated there are some with auto closures as well as enclosures with doors
that slide in. Hoglund asked if these enclosures would be locked as well. They also
talked about an agreement with the owners to using the dumpsters and sharing costs.
Grittman stated he tried to provide space large enough for each of them to have their own
containers within that enclosed area. Also discussed if curbing would be put in as well as
striping and Grittman stated it is a design issue and depends on how much the EDA
would be willing to put in dollar wise. Schwientek asked about the cost of Grittman's
concepts and he stated he would need to talk further with the city engineer to determine
that.
Maus stated he had a concern on how functional one of the plans was with cars backing
up after parking near the building and then not being able to get back out. Possibly a
plaza area would work better. Grittman stated the stalls are 10ft and 10 & 1/2 ft wide,
added back lip and felt this provided adequate reverse space. Could also add curb stops if
they wanted.
Koropchak also talked about the city's revitalization plan and the proposed walkway, and
Grittman stated he left 20 to 25 ft of space assuming that would still occur. Schwientek
also talked about facades in the back, hoping the owners would be encouraged to do that
as well. Maybe a larger plaza versus parking up to the building would create a more
attractive area and people would use the back entrances more, tying the plaza in with the
public parking. Herbst asked about the buildings sloping to the back and Grittman stated
that the owners could put up a false face to change that.
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Maus added that perhaps there needs to be a financial incentive to the owners to get them
to want to fix up that area. Herbst added that possibly the owner having the dumpster on
their site would get a bigger break cost wise as an incentive. Koropchak asked if
Grittman would talk with Flicker's as well and he stated he would do so. Maus added
that maybe the owners would want to have their own carts closer to their buildings giving
them more control.
Schwientek added that the EDA talked about paying the cost of the trash enclosures.
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EDA Minutes - 06/19/01
Grittman advised he would start by contacting AI Loch and then go from there. They
talked about creating a contract stating the owner and the tenant would be willing to use
and maintain the enclosures.
Possibly Grittman could bring up the plaza concept as another option to the owner.
Schwientek added that they would like to see something done yet this summer.
Steve Grittman advised that he would proceed with contacting the business owners with
his concepts and then report back to Koropchak.
The EDA concluded: of the two options, the EDA preferred the second option; however,
encouraged a third option of a rear plaza concept to encourage use of rear entrance public
parking lot. BDA may consider 50% of funds for common trash handling.
5.
Consideration of a request to approve/disaoorove additional funds to DMRF No.
112 for removal of asbestos.
Vice Chair Schwientek advised that at the FDA meeting in May, the commissioners
approved the use of DMRF in the amount of $5,366.50 for facade improvements to four
exterior walls at 207 Pine Street plus up to $500 for fee reimbursement. Additionally, the
commissioners stated if upon removing the current siding asbestos was found, the
applicants were invited to approach the EDA for additional funding as the total maximum
amount of DMRf available per parcel is $7,500 for three sides.
Mr. Thickpenny stated he was pleased with the quotes he received for asbestos removal,
which copies of were provided by Thickpenny. Using the lower bid of $2,950 from
Metro Environmental, the EDA could approve a matching amount of$I,475 and remain
below the $7,500 maximum. Total EDA contribution would be $6,841.50 ($5,366.50 +
$1,475).
Ken Maus added that although he was not at the last meeting he felt if the EDA stated
their support, they should follow through with it.
A 1y10nON WAS MADE BY CLINT HERBST AND SE(:ONDED BY RON
HOGLUND TO APPROVE AN ADDITIONAL $1,475 TO DMRF NO. 112 FOR
REMOVAL OF ASBESTOS. TOTAL AMOUNT OF BDA MATCHING DOLLARS IS
$6,841.50 PLUS UP 'T'O $500 FEE REIMBURSEMENT. Motion carried unanimously.
6.
Consideration of Executi ve Director's Report.
Koropchak asked Pam Campbell, DA T Chair, if she knew why the Chamber had not yet
started their project and Campbell stated she was not aware that they hadn't but would
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EDA Minutes - 06/19/01
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check with Susie Wojchouski.
Koropchak provided her repOli to the members.
. Block 52 ~ Since the joint meeting of the HRA/Couneil, HRA Chair Frie and
Koropchak met or spoke with all property owners of Block 52 with the exception
of Kathy Froslie and including Pat Sawatzke to determine their short and long
term plans. Additionally, Frie and Koropchak met twice with Pat O'Donnell,
proposed owner, and Mike Cyr, proposed contractor, relative to the options for
redevelopment of Block 52. Based on our conversations with property owners,
the direction from Council and, given the fact, the preference of the proposed
developers was either to redevelop along River Street or redevelop along Walnut
Street at their existing site; the II RA on June 6, 2001 encouraged the developers
to proceed with redevelopment on their existing site. The developer approached
the HRA with the River Street concept knowing of the HRA's interest to
redevelop the block and the project along River Street cash-flowed for the
developer because of the proposed mixed use concept: retail, office, and upscale
condos with underground parking which was consistent with the Comprehensive
Plan. A project along Pine and Broadway would not include housing and
underground parking.
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Given the interest of certain property owners of Block 52, upon finalizing the TIF
assistance for redevelopment of the Amoco and Front Street sites, and based on
the decision of the Legislators to reduce the tax classification rates; the lIRA
plans to meet with interested sellers to proceed with negotiations to acquire in a
partnership approach for redevelopment within two/four years.
. The HRA authorized the preparation of the Contract for Private Redevelopment
with Masters Fifth A venue for redevelopment of the Amoco site. The proposed
project is the construction of 5,700 sq ft restaurant and office f~lcility with second-
floor rental apartments (6 units) and a detached carriage house consisting of
indoor parking and second-floor apartments (2 units). The lIRA will reimburse
the developer of the lesser: A. the cost to acquire and demolition the Amoco site,
13. not-to-exceed $185,000, or C. the amount of the "available tax increment"
generated from the project during the life of the district. In addition, the HRA
approved up to $45,000 for parking development on adjacent parcels from surplus
funds within the Downtown TIF District.
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Based on tax increment cash-l1ows including the proposed classification rate
reductions, the committed debt on the Amoco site, and the proposed debt on the
Front Street site; the Downtown TIF District has sufficient tax increment to
proceed with negotiations for redevelopment of Block 52.
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. Marketing Team of Barger, Hoglund, Doty, I3elsaas, and Koropchak visited a
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EDA Minutes - 06/19/01
small machine shop in Eden Prairie June 19. I ,ooking at a 10,000 sq ft huilding.
3-5 jobs at $20 per hour without henefits.
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In lieu of the two articles in the Minneapolis Tribune on Sunday and Monday
relative to tax increment financing, Koropchak provided a copy of the Tax
Increment Property Tax Data, Taxes Payable 2000 for Wright County. The City
of Monticello has 14 active TIF Districts f()r a captured tax capacity of 3.85% of
the city's total tax capacity. Assuming the Council approved TIF District No. 1-
28 and with the HRA adopting a resolution decertifying TIF District No. 1-12
(Aroplax) on June 6, the city remains at 14 active districts. ]n past years, the
HRA has used the pay-as-you-go finance method (reimhursement). Therefore, if
the classification rates are reduced, the property owner pays less property taxes,
the HRA collects less tax increment, and the developer is reimbursed less tax
increment ("available tax increment").
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GMEF No. 007 - The first Standard Iron balloon payment was paid the end of
May 2001 per Loan Agreement.
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It was advised that Ron Hoglund had given a lead for potential industry from
South Carolina - eopy of letter was provided, faxed lead sheet hom CB Richard
Ellis on FayMar huilding for lease and Barger's phone number. Had call hOl11
real estate agent "thanks" and company representative planning to visit site. 20-
30 jobs.
. 11- Window huilding - Red Wings Foods clected not to proceed with acquisition.
Currently are working with local lender f()r potential to construct.
. One local manufacturer looking to expand in 2002.
. IRTI - Steve will execute Contract for Private Development today and loan
closing planned at lender office the week of June 18. Watch for groundbreaking.
7. Other Business.
None
8. Adiournment.
The meeting was adjourned at 5 pm.
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