HRA Minutes 01-08-2003
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MINUTES
MONTICELLO 110lJSING AND REDIi:VELOPMENT AUTHORITY
Wednesday, .January 8, 2003 - 6:00 p.m.
505 Walnut Street - Bridge Room
Comrnissioners:
Chair Brad Barger, Vice Chair Stcve Andrews, Darrin Lahr, Dan Frie, and
Bill Fair.
Council Liaison:
To be determined at the January 13,2003 City Council meeting.
Staff: Rick Wolfsteller, Ollie Koropchak, and Lori Kraemer
I. Call to Order.
CHAIR HARGER CALLED THE MEETING TO ORDER AT 6:00 P.M. AND
DECLARED A QUORUM.
2. Considenltion to approve the December 4, 2002 HRA minutes.
A MOTION WAS MADE BY BILL FAIR TO APPROVE THE MINUTES OF THE
DECEMBER 4,2002 HRA MEETING. DAN fRIE SECONDED THE MOTION.
MOTION CARRIED UNANIMOUSL Y.
3.
Consider'ation of adding or removing items from the agenda. None.
4. Consent Agenda. None
5. Consideration to review Specifications and Bids for the Front Str'eet Grading
proiect and authorize oayment to Veit & Company, Inc.
Executive Director Ollie Koropehak provided a brief background regarding the Front
Street grading project, including specifications and the initial letter from Bret Weiss, City
Engineer, and the advertisement and tabulation of bids. Bret Weiss was also present and
provided further ini<.mnation and advising that Bart Anderson, Veit Companies, was also
present. Weiss gave a brief summary on how WSB came up with their estimates, stating
there is always tbe unknown, and unfortunately the actual removal amount was over by
about 4 y; ft, increasing the excavation yards. It was noted also that tbere was dehris
buried in several locations tbat had to be removed, as well as additional stumps that were
not discovered previously. Bali Anderson advised tbat there was no way to anticipate the
stumps as they were covered.
Weiss advised that Monticello has a standard spec which does not allow increased unit
prices for higher or lower quantities. Anderson added that they bid the job thinking they
would be using belly dumps vs tandems which are less eiIicient, stating he is only asking
for additional money on the overrun. not asking for more on the base bid as that was his
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HRA Minutes - 0 I /08/03
expense. Weiss added that Monticello's specs are very fair in their policies. He also
stated he understood that Veit had to cross the li'eeway which Anderson stated they were
not aware of initially and that this i.dso added to their additional expenses. Weiss stated
there is a clause in the specs l<.)r that reason and although he felt they did a good job, they
also had a calculated risk when bidding the project. Weiss added that Veit needed to
notify the City of additional expenses prior to, not after the f~lCt. Again, he added they
did a good job and in a timely manner. He didn't feel the HRA should approve the
increased amount requested by Veit as it would not be a good precedence for the City to
set
Barger asked about the excess topsoil and Weiss advised the City kept it and it was used
within the City. Weiss stated that the City left this matter vague as to ifit was going to
bc the City's dirt or not not knowing ifit was good or bad, but also that Veit was taking
it across the freeway near the same spot they were getting their granular. Anderson
added that they had only 14 days to completc the job, hut did it in 7 days. He also asked
why the invoice had not been paid as the job was completed in July. Weiss stated he
needed lllore information from Anderson and it took 4 months to gct a phone call back
!i'om him, stating he had numerous calls into him. Anderson was under the impression
that they would at least get paid the base hid. Koropchak added that the HRA hadn't
rcceived an invoice until Decclllher and Anderson stated that he had invoiced WSB in
August.
Weiss advised the lIRA to pay the $91,379.55, along with the $5.000. for a total of
$96,189. He stated that the $5,000 was the 5% retainer. It was advised that this amount
is what has been certified, without the additional costs being requested by Veit. Bill Fair
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statcd he would not recommend paying anything higher than what was in the bid. Dan
Frie agreed and noted that costs to redevelopers is nmch higher than expected. The
melllbers were in favor or Weiss's rccommendation.
A MOTION WAS MADE BY BILL fAIR TO AUTHORIZE PAYMENT OF THE
FRONT STREET SITE GRADING INVOICE TO VEIT & COMPANY, INC. IN THE
AMOUNT OF $96,189.00. STEVE ANDREWS SECONDED THE MO'fION.
MOTION CARRIED UNANIMOUSLY.
Weiss rurther recommended that they stick with the same policy they have in place,
adding that typically they are closer with their engineering estimates, but unfortunately
not this time due to unforseen issues.
Consideration of request from Front Porch Associates, Ltd. to amend the Contract
for Private Development dated May 1, 2002.
Mike Cyr, Front Porch Associates. addressed the I IRA. and advised that he was not
asking for additional moncy but rather requesting to amend the contract to rei1ect his
requests. Koropchak provided invoices from Cyr as well and advised him of the 'I'I F
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HRA Minutes - 01/08/03
boundaries. She also advised that the original contract stated he would be reirnhursed for
sanitary sewer, storm sewer and water serviee fees. She advised that paving costs wcre
addcd as well and were quite large. Koropchak recommended they request a written
acknowledgment Ii'om First National Bank as well as from Big Lake Lwnber. She stated
Big Lake Lumber and Front Porch did not f()llow their agreement, thercfore the request
for the consent letter. Koropchak advised Cyr that she would like verification from him
for costs incurred and also that the developer incur the cost of amending the contract. At
that time the funds could be advanced to the developer on that date, not the date of when
the costs were paid.
Cyr advised that he felt it was just a simple change of money going li'om one spot to
another. and he did not realizc trunk fees could he assessed. He would like to change the
eligible costs ff)!' what has bcen spent. Bill fair asked if this was allowahle under TIF
rules and Koropchak stated yes. Also Koropchak adviscd that 6 townhomes were to be
completed by the end of December and only one had been completed, adding that two
townhomes will be on the tax rolls in 2003, two at 70%. and the other two at 50(%. Cyr
stated 8 are in the ground, 4 are sold, they are negotiating on another one, and thereffJre
they are behind in getting ecrtificates of oceupancies.
A MOTION WAS MADE BY BILL FAIR TO AMEND THE CONTRACT FOR
PRIVATE DEVELOPMENT' BY AND AMONG TilE FRONT PORCH ASSOCIATES.
LTD" TI-1I': I IRA AND THI': COUNCIL AMENDING THE SITE IMPROVEMENT
COS'TS ON PAGE 7. SECTION 3.5, LAND ACQUISITION. III. FROM (UP TO
$27.700 OF COST OF 'fHE TRUNK FEES PAID BY THE DEVELOPER AND
ASSOCIATED WITII PROVIDINq SANITARY SEWER, STORM SEWER, AND
WAnm. SERVICES TO TIlE DEVELOPMENT PROPERTY) TO (UP TO $12,665 OF
COST OF THE DEMOLITION AND CLEARINCJ PAID BY TIlE DEVELOPMENT
AND ASSOCIATED WITH -n IE DEVELOPMENT PROPERTY). AND IV. FR..OM
(UP TO $12.300 OF TilE COST OF CURB AND GUTTER IMPROVEMENTS PAID
BY THE DEVELOPER AND DESIGNED TO SERVE '1'1 IE DEVELOPMENT
PROPERTY) TO (UP TO $27,335 OF COST OF CURB, GUTTER, AND PAVING
IMPROVEMENTS PAID BY TI-lE DEVELOPER AND DESIGNED TO SERVE TIlE
DEVELOPMENT PROPERTY) SUBJECT TO A CONSEN'1" LETTER FROM FIRST
NATIONAL BANK OF ELK RIVER AND BIG LAKE LUMBER, COPY OF FRONT
AND BACK Of CI IECK NUMBERS 1666, 1691, AND 1695, AND DEVELOPER
INCURS COST FOR AMENDING CON-rRACT. DARRIN LAI IR SECONDED THE
MOTION. MOTION CARRIED UNANIMOUSLY.
6.
Continued - Consideration to hear an update on the progl"ess for redevelopment of a
portion of Block 52.
a) Consideration of an update of the Pre-Design Coneept meeting between Johnson
Team and City Staff/Consultants.
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HRA Minutes - 01/08/0J
Koropchak updated the HRA that a lxe-design meeting was held and went welL with
discussion being on concepts for Phase I and 11. She also received a preliminary
agreement which has been signed, ancl a deposit had been made. The applicants should
be back to the HRA with sketches and numbers in February. Koropchak asked theHRA
Inembers to consider if they would be comt-"(n.tab1c if Phase II did not move forward.
h) Consideration to discuss terms and conditions of the Contract for Private
Redevelopment between the HRA and Sc.J Development Group, LLC.
This item was not discussed.
c) Consideration to authorize an appraisal ofthe liRA Broadway lot and call for a
public hearing for disposition of lands.
City Administrator Rick WolJsteller suggested that the HRA use the appraisal that the
appl icant provides rather than spcnding dollars on a separate appraisal. After a brief
discussion it was the consensus orthe lIRA to use the dcveloper's appraisal as the valuc,
The consensus felt it was premature to call for the public hearing.
7.
Consideration to hear an ulldate on the 'lI"oexess for redevelopment of a portion of
Block 51 (Sawatzke).
Kuropchak advised that this item would be discussed at the next 111eeting with the
developer providing numbers.
8.
Consideration to hear concept nlans for redev.elopment of Block 35, Phase II.
(Masters Fifth Avenue, Barry Fluth ).
Koropchak introduced Dale Sonnichsen, representative working with Barry fluth on the
project who providecl information regarding Phase 11. He advised that the original plan
was to purchase 3 properties and they have had discussions with the property owners who
are receptive to working with them. This next phase consists 01'6 units, upper flats and
lower Hats, as well as a garagc with a carriage unit above, located behind the 6 units, for a
total of 18 units. It was advised that they still need to go through concept approval to
make sure they can fit in all 6 units. Sonnichsen advised that these could be sold as
condos. and there would be an association. He also added that the drivc aisle would be
widened and there will be more parking. The HRA asked about selling price but he could
not advise as this would be a diflerent market than the units built in Chanhassen. He
advised that they vary in price due to size, etc., and the ones in Chanhassen vary between
$110,000 and $] 60,000. If they receive positive feedback from thc I IRA, they would
anticipate 30 to 60 days to put together finaneials and sol idify the project. Koropchak
advised Barry and Brad of the June 30, 2004 deadline. She also advised that eligible
costs would be part of acquisition and demol ition, and this would have to occur and be
paid for by that date. Koropchak advised that they need to provide square footages to get
numbers. Sonnichsen stated they are just looking for support from the HRA at this tin1e
and then they will move forward.
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HRA Minutes - 01108/03
The consensus of the II RA was favorable. lhey discussed Llcades and amenities. Lahr
and Andrews preferred that not everything be rental. Sonnichsen stated he presumed that
they would be f(Jr-sale properties and Andrews added he would like to sec an effort to
develop them into more privately owned and not purchased to be rented out. Dan Frie
also felt it was a good project. Bill Fair agreed with this project in the CCI), adding that
there possibly be lower levels for seniors, but he also thought the CCD was for higher
density. Would like to add some variety/diversity in extcriors. Sonnichsen added that
they irrigate the front yards and have maintenance services as well. Consensus was to
request that the developer give the project some diversity and character, and move
forwarcl.
9.
Considcration to authorize payment of BRA bills.
A MOTION WAS MADE BY STEVE ANDREWS TO AUTHORIZE PAYMENT' OF
THE HRA BILLS. DAN FRIE SECONDED THE MOTION. MOTION CARRIED
UNANIMOLJSL Y.
In. Considcration of Exceutive Director's Report.
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Koropchak provided her report and advised she would be going to the County on
Monday to discuss TIF documents as there are discrepancies regarding parcels
and valucs.
CMIIP had not cOlnpleted all 3 homes by 12/1102, two of the units will be at 6 (j<Yo.
Authorized serni payments of rIF districts.
Front St - expenditures are right in on budget, exclL!sive of the Carlson house.
Steve Andrews stated he was willing to serve another tcrm on the liRA.
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11. Committcc Rcports.
Koropchak stated she would like to have the Marketing Committee rnect, asked if Darrin
and Brad would serve again, which they both agreed to. Brad advised that they had been
approached by the Hockey Association to see if the HRA would be interested in
advertising through them.
12. Other Business. None
13. Adjournment.
The meeting was adjourned at 7:30 pm.
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~~A Chair
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