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HRA Minutes 05-07-2003 . . . MEETING MINUTES MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY Wednesday, May 7, 2003 - 6:00 p.m. 505 Walnut Street - Bridge Room Commissioners Present: Chair Steve Andrews, Vicc Chair Bill Fair, and Dan Fric and Council Liaison Roger Carlson Darrin Lahr, Brad Barger and Rick Wolfsteller Ollie Koropchak and Lori Kraemer Ahsent: S ta ff: 1. Call to Order. Chair Steve Andrews called the meeting to order at 6 p.m. and declared a quorum. 2. Consideration to approve the April 2, 2003 I IRA minutes. A MOTION WAS MADE BY BILL FAIR TO APPROVE THE MINUTES OF THE APRIL 2, 2003 ANNUAL MEETING. DAN FRIE SECONDED THE MOTION. MOTION CARRIED. 3. Consideration of adding or removing items from the agenda. None 4. Consent Agenda. None 5. Consideration to hear updates: A. Phase I. II. and III design concept for a portion of Block 52. Executive Director Ollie Koropchak advised that Fred Katter had stated if they had a co- developer signed on prior to tonight's meeting, they would be attending. She stated apparently they did not. 13. Redevelopment of a portion of Block 51. Pat Sawatzke was present and informed the commissioners that he was still working on his project and had been in contact with the property owner next to him regarding possihle acquisition of that lot. C. Redevelopment of Block 36, Phase I I. Koropchak stated that she had spoken with Brad Johnson who informed her that they currently have one purchase agreement and are working on the others. Barry Fluth also stopped by City Hall to ohtain another copy of their contract. . . . HRA Minutes - 05/07/03 D. Redevelopment ofa portion of Block 37 (request for TIF assistance). Koropchak advised that there was a potential project coming up. She stated that Tom Holthaus had contacted her and advised that he was interested in purchasing the lot to the west of the Broadway Kwik Stop, demolish the building, and put in a car wash. She advised that they had discussed design and that she had looked at a similar building in Rockfixd, noting that the huilding had some brick on it, and that it looked very nicc. Koropchak further advised that there will possibly he a policy question for the liRA to address in the future. 6. Consideration to approvc modifications to the Contract for Private Development hetween lA.C. Development, LLC and the HRA, to approve assignment of the modified Contract from lA.C. Development to Production Stamping. Inc.. and to authorize the HRA Attorney to draft such documcnts. Koropchak summarized the background for this item and advised that Andrews and she worked with the HRA Attorney to come to an agreement with the current property owner, Charles Van Heel, and Production Stamping who purchased the building and has moved in. She advised the HRA that TIf Dist. No.I-23 went from pay-as-you-go to up-ii'ont assistance and noted there was an outstanding deficiency of $18,795 to he paid by the owner. The contract would need to be assigned to Production Stamping who would take over any future tax deficiency, and the seller agreed to pay up to $1,500 of the legal expenses to modify the contract. She further advised that the City Council approved the revised payment schedule. Koropchak provided an e-mail she received from Mr. Van Heel on 5/2/03 asking for this matter to be deferred until the June meeting so that he could attend and give his viewpoint before it was voted on. She asked him to suhmit a letter for this request. Koropchak stated that it was Rick Wolfsteller's recommendation to table this item until June, noting they previously spoke with Mr. Van I-lee! and he appears to be unhappy with this matter. T'here was further discussion that the owner was aware of the debt prior to this and stated previously that the "deal would fall through" if the city did not forgive the money owed. It was noted however, that the sale went through. Koropchak stated that all parties previously agreed to this. Andrews advised that he had talked to Brad Barger about this matter as well, and he also felt the same and that it was consistent with what the liRA has done with everyone else, and there have heen no problems before. A MOTION WAS MADE BY BILL FAIR TO TABLE ANY ACTION UNTIL THE JUNE 4,2003 HRA MEETING. DAN FRIE SECONDED THE MOTION. MOTION CARRIED UNANIMOUSL Y. 2 . . . HRA Minutes - 05/07/03 7. Consideration to authorize payment of I IRA bills. Koropchak advised that she asked Steve Bubul for adjustments on their invoices and provided copies of the revised invoices. One adjustment was regarding a telephone conversation with Koropchak pertaining to downtown revitalization. This was adjustcd by Kennedy & Graven from $126 to $42. Another invoice rcgarding Block 52 in March was reduced from $901.25 to $465.50 as Koropchak advised they were billing for both attorneys. Koropchak added that Stevc Bubul apologized for the ovcrsight. Koropchak adviscd that the HRA had previously made a motion regarding the special legislation bill to extend the 5 year rule, not to exceed $3,000.00 in expcnses. The total through March is $2,076 and will most likely exceed the $3,000. Thc consent was to proceed. Rcgarding the Hockey item invoice, that goes to the City, not the HRA. A MOTION WAS MADE BY BILL FAIR AUTHORIZING PA YMENT Of THE I-IRA BILLS WITH NOTED ADJUSTMENTS. STEVE ANDREWS SECONDED THE MOTION. MOTION CARRIED UNANIMOUSL Y. 8. Consideration of Executive Director's Report. Koropchak provided thc report and added that CMIIP had requested thcir second disbursement but adviscd CMHP that the BRA would probably not proccss the request until the units elosc. She advised also that she will be receiving copies of escrows for the landscaping as well. She will start the proccss for the checks so thcy are ready when the closings arc eomplete. The HRA concurred. Bill Fair further stated no final payment until all items are completc and there is a satisfaction of mortgage, adding that it would not be fair to the homeowners if the city paid CMIIP in full and they did not complete all rcquirements. Koropchak added there is only one unit Icft to be sold. Regarding the Amoco site, Koropchak advised that Barry Fluth asked for his pay-as-you- go dollars and up-front offsite parking dollars. She noted quite a fcw items that need to be complete prior to paying this. She also stated that his expenses to date are well below his $5,000 dcposit. lJMC is over the $5,000 and Hans Hagen is undcr the $5,000, adding that this project should be complete 7/1/03. Vine Place is behind on completion, 6 homes were to be completed by the end of 2002 and at this time he has certificate's of occupancies for 3 to 4 of those. Administrative costs are also over the $5,000 deposit. Koropchak provided tax rate information, noting that Monticello's had gonc down. Koropchak asked if anyone from the HRA would be interested in meeting with an IDC 3 . . . 9. HRA Minutes - 05/07/03 member, Jeff O'Neill and herself to discuss industrial land acquisition. Dan Frie agreed to attend the meetings. C{)lnmittee Reports. - None 10. Other Business. None 11. Adjournment. A MOTION WAS MADE BY DAN FRIE TO ADJOURN THE MEETING AT 6:40 P.M. BILL FAIR SECONDED THE MOTION. MOTION CARRIED UNANIMOUSL Y. (~!t' ~uJ , e order 4