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HRA Minutes 04-02-2003 . . . ANNUAL MEETING MINIJTES MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY Wednesday, April 2, 2003 - 6:00 p.m. 505 Walnut Street - Bridge Room Commissioners: Chair Brad Barger, Vice Chair Steve Andrews, Darrin Lahr, Bill Fair and Council Liaison Roger Carlson Dan Frie and Rick Wolfsteller Ollie Koropchak and Lori Kraemer Absent: S taiT: 1. Call to Order. Chair Brad Harger called the meeting to order at 6 p.m. and declared a quorum. 2. Consideration to anPfove the March 5. 2003 HRA minutes. A MOTION WAS MADE BY DARRIN LAIIR TO APPROVE TilE MINUTES OF THE MARCH 6. 2003 lIRA MEETING. STEVE ANDREWS SECONDED TI IE MOTION. MOTION CARRIED UNANIMOUSLY. 3. Consideration of adding or removing items from the auenda. None 4. Consent Auenda. None 5. Public Hearing - Consideration to adopt a resolution authorizing disposition of raw land described as Outlot A. Country Club Manor, City of Monticello. Ollie Koropchak, Executive Director, reminded the HRA that they had called for a public hearing for the disposition of raw land described as Outlot A, Country Club Manor and advised that she had one resident inquire about notiiication to propcrty owners regarding this public hearing. Koropchak advised that when the City Council holds a public hearing notices are sent out but in checking with the lIRA's attorney it was advised that this was not a requirement of the HRA. She will advise the resident. She further advised of the Hockey Associations proposal for a hockey/soccer dome on this parcel and of the City Council's recommendation to sell the land which the IlRA is listed as title owner. She noted she did not know the status of the project at this time. She also advised what the HRA was required to do regarding the public hearing but that they are not transferring title until thc project proceeds and provisions are met. This is to handle the technical part of the requirement of the public hearing. Fair asked about the provision by the City Council that the land was not to be used as a public use, and the clause of one year to sell that 7 acre parcel and get it back on the tax roles, further questioning what happens if they do not fulfi II the terms of agreement. Koropchak was unsure and noted for the 7 acres of taxable property there needs to be provisions regarding public purpose. Roger Carlson advised he thought the parcel might come back to the lIRA, although he was not certain either. Fair was concerned that if other proposals came forward and the Hockey Association . . . HRA Minutes - 04/02103 was in default, this would hold them back. Carlson and Barger both stated that they did not believe that the project would go forward without the sale of that land as that is part of the I lockey/Soccer Association's funding. It was also noted that there is a time frame for getting the parcel back on the tax rolls. Chair Barger opened the public hearing and hearing no comments, the public hearing was then closed. A MOTION WAS MADE BY DARRIN LAHR TO ADOPT THE RESOIJJTION AUTHORIZING DISPOSITION OF RAW LAND DESCRIRED AS OUTLOT A, COUNTRY CLUH MANOR, CITY OF MONTICI:LLO, TO THE MONTICELLO YOUTH HOCKEY AND SOCCER ASSOCIATIONS, SUBJECT TO EXECUTION OF A liRA CONTRACT OUTLINING TI IE PUBLIC PURPOSE OF THE TAXABLE LAND (APPROXIMATELY 7 ACRES) AND INCLUDING PROVISIONS APPROVED BY THE CITY COUNCIL. HILL fAIR SECONDED THE MOTION. MO"I'ION CARRIED UNANIMOUSLY. Brad Barger advised that he has 3 children who play hockey and he wanted to make sure that the HRA did not feel this would be a conflict of interest. It was determincd that therc was no financial gain so no conflict of interest was found. 6. Considcration to heaT updates: A. Phase I, II. and I II design concept fl)f a portion of Block 52. Koropchak stated that Stcve Johnson and Fred Kattcr were both present and would bc addressing the HRA. She notcd that since the last meeting in March, Kattcr, Wolfsteller, Hubul and Koropchak met to see if they could get a better handle on the timing of the project and discussed with them that they were not clear of what thcy werc asking from the II RA. She also stated that McCombs had revised the developmcnt costs for that project, which she provided to them. She had not proceeded with anything at the County Assessor's office as it is still too premature. She noted that KaUer had stated he had a meeting scheduled with the Heatons and he would update the HRA on that as well. She advised that since the March meeting she had 3 local individuals stop in her office to state their opposition to this project and she had advised them to attend the HRA meeting. Fred Katter addressed the HRA and stated they held moving any further with the project until they could meet with the Heatons, which they finally did earlier that day. They explored a number of concepts and they felt there would be no reason the Heatons and Johnson could not work together which Katter felt this meant they could moyc f()fward. They would now work on eleyations and refining the architecture. They did complete work on the Phase I study which was found to be clean as far as contaminants, and soil tests were completed and looked good as well. The basic tcchnical work is done and now they can proceed with design. They will now start this month to talk with the other property owners and he will get back to Koropchak in a few weeks regarding an agreement. He also advised that he would be happy to meet with anyone that is in opposition to this project and he would proyide business cards 2 HRA Minutes - 04/02/03 . to give to those people. Lahr asked Katter if they could meet the current time frame and he stated he did not feel that this would bc a problem with meeting the deadline of the end of June 2004. Katter again stated that the key was to meet with the Ileatons prior to meeting with any other property owners, and now he will start making the other calls next week. Koropchak advised that there are many steps to go through as far as review of the plans, etc., and he was well aware of that process. There was no further discussion. B. Redevelopment of a portion of Block 51. Koropchak met with Sawatzke on March 2gtl'. She stated that based on Ehler's input, Sawatzke was given a dollar amount and net present value. Koropchak discussed with the Attorney qualifications for the proposed TIF district and noted this was doable. Sawatzke addressed the HRA and stated he did not have any additional information, and the property owner next to him had not yet returned so he has not been able to contact him. He is still concerned with the proposed project for Block 52, Phase III and it's impact on his project. There was no further discussion. C. Redevelopment of Block 36. Phase II. . Koropchak advised that Brad Johnson was present and asked to give an update to the HRA members. He advised the status of the restaurant and that Coldwell Burnett would be leasing the rest of the space. He stated the rental property in town is son at this timc as it is all over. He felt by mid summer it would all be leased, referring to space above the restaurant. lie noted that the modules were now in place above the garage and that they have a purchase agreement with a current property owner and hoping to close in June. He advised this was a key site, and one of the other owners stated she would likc to stay and move into one of the new units. The third person would bc an investor. . Johnson statcd an issue would be that they need to add about another 20 parking spaces and could add to a semi private/public parking, stating that another 12 units could be constructed. He felt this might be a similar transaction as the one with the HRA and Hans Hagcn, advising that if they had rental versus for sale, the values would not be therc. They anticipate the homes to sell for about $165,000 per unit, which would generate appro x $22,000 in taxes per year. Hc stated there was a gap of about $150,000 and they feel that they could afford $15,000 pcr unit. The two things they would ask for would be the currcnt valuc of the TIF to reimburse for acquisition and also help with infrastructure support to make the parking lot work. They are looking at the south end of thc alley for the 20 parking spots, they currently have 200 ft., and to make the allcy 2 way they would place parking on the right hand side. The roadway for the new housing would be internal. They may ask for another $50,000 in assistance, and anticipated total acquisition costs at $420,000. It was advised that July 2004 is the deadline to begin a project, but the lIRA will be looking at extending thc deadline for 5 years. 3 . . . I1RA Minutcs - 04/02/03 Andrews asked if this would be a net gain of parking and Johnson advised that on that side of the street with no additional square footage, the units staying the same, would add an additional 20 spots. Andrews also asked about the independent structures which have now turned into row homes and Johnson felt that this would work best, further stating that they may come with a mixture of 6 duplexes and 6 row houses. He stated they are concerned with parking and would like to add more for tenants in the carriage homes. Barger asked if the dollar amount has changed and Johnson stated only in the tax base as these would be ll)f sale and not rental. With the new tax law the capacity for single family and rental are about equal. Koropehak stated that the HRA would now be looking for plans to be submitted. 7. Consideration to adopt a resolution approving a Special Legislative Bill to extend the five~ year activitv rule for TIF District No. 1 ~22. Barger asked Koropchak if this extension would encompass the entire downtown area and she stated that it did include the entire district. As a follow-up to the lIRA's March decision to not proceed with a special bill and per the recommendation of the HRA Attorney; Mark Ruff, Barger, and Koropchak met on March 14 to clarify the benefits of the proposed bill. Koropchak stated she misunderstood that without the extended legislation, the lIRA could not increase the amount of the temporary bond if necessary. lJ pon the advise of the consultants and with Wolfste\ler's approval to move f()rward, the Council adopted a resolution endorsing the special legislation bill on March 24. On March 25, Koropchak and the Chamber Oirector went to the Capitol and talked to Mark Ourada and Bruce Anderson about supporting and endorsing the bill. It was the recommendation of the lIRA Lobbyist to have support from the business community because Anderson had some hesitation about endorsing the bill due to a previous sales tax bill presented by the City of Buffalo which was controversial. Today, Koropchak and Wojchouski went before the Senate Tax Committee to introduce the bill. Koropchak became aware that Ourada and Anderson had received four telephone calls in opposition to the bill. Two individuals appeared at the Capitol to testify against the bill. Senator Ourada did allow the bill to be introduced and Koropchak was advised to work out the opposition at the local level in order fl)f the bill to move forward. The Bill was well received by the Senate Tax Committee. Fair asked the reason for opposition and Koropchak stated it was her understanding that the opposition felt the Block 52 project was driving the 5~year extension bill. The bill allows time to work on all projects within the district for the good of the community. Koropchak noted asking for an extension is being confused with approval of proposed projects, two different issues. She also stated that none of the developers of the three proposed projects were notified of the special legislation bill. Koropchak advised that the bill also provides the option of providing both up front and pay as you go financing. If they get the extension they have time for any project to move f(Hward. Barger added that with the current proposal by Steve Johnson, that they will have the monies spent so this would not affect that project. Hut if the project doesn't materialize, then it 4 . . . HRA Minutes - 04/02/03 becomes an issue. Fair added that he also felt this would be a benefit to the HRA for future projects, if they didn't get the extension it limits their options for assistance. Koropchak addcd that they are only asking for a 5 year extension on activity, not the lifc of the district. Harger asked if when the City Council recommended this they understood that this was thc entire district. Barger asked if they will continuc to work with the lobbyist, and shc stated yes and with the community as well, noting those opposed. She added that most of the projects are a long way 011 and thcy need to look at resolving some of the local concerns. Shc hoped that people will see this as two scparate issues, extcnding the time pcriod is not being driven by anyone project. Fair addcd that the represcntatives need to be aware of the downtown revitalization project which has been in place since 1997. Koropchak advised that she had provided that information to the representatives. Barger askcd if it was 5 years or nothing, and shc added that some communities may ask for more, but gct less. She felt it was more an issue of it passing, not years. Steve Andrcws felt there was nothing controversial and Koropchak concurred, stating everybody wins and the whole point of the resolution is to give the HRA another tool for redevelopment. A MOTION WAS MADE BY STEVE ANDREWS TO ADOPT THE RESOLUTION APPROVING A SPECIAL LEGISLATION BILL EXTENDING THE FIVE-YEAR ACTIVITY RULE TO TEN YEARS FROM JUNE 30, 1997 TO JUNE 30, 2007, AND AUTHORIZING STAFF TO TAKE SUCH ACTION AS IS NECESSARY TO CAUSE ENACTMENT OF SUCH BILL. DARRIN LAHR SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 8. Consideration to approve the election of HRA officers 1'()r 2003 and approve the appointment of commissioners to committees. Koropchak clarified that the appointments are from April to April. Steve Andrews agreed to be the Chair. Koropchak advised that the only active committee is the Marketing Committee and that Lahr and Barger were on this committee. She also stated that Andrews had been appointed to a 3 year term on the MCP, advising the term is not up yct. OFFICERS A MOTION WAS MADE HY DARRINLAIIR TO NOMINATE AND ELECT STEVE ANDREWS AS ClIAIR AND BILL, FALR AS VICE CHAIR OF TIlE HRA fOR YEAR 2003, AND APPROVE APPOINTMENT OF RICK WOLFSTELLER AS SECRETARY- TREASURER FOR 2003. BRAD BARGER SECONDED THE MOTION. Thcrc was further discussion by Fair clarifying his position as filling out Hob Murray's term and that he was willing to move down the list to serve as an officer, being the newest member. It was the consensus to keep Fair in thc current rotation list. WITII NO FURTHER DISCUSSION, M<yrION CARRIED UNANIMOlJSL Y. 5 . . . 10. BRA Minutes - 04/02/03 COMMITTEES A MOTION WAS MADE BY HILL FAIR TO APPROVE THE APPOINTMENT OF BRAD BARGER AND DARRIN LAHR TO THE MARKETING COMMITTEE. STEVE ANDREWS SECONDED '(,HE MOTION. MOTION CARRIED UNANIMOUSLY. 9. Consideration to review for amending the HRA Business Subsidv Criteria and HRA Bylaws. Koropchak stated this is an annual housekeeping item and within the lIRA bylaws it states that they look at this annually. She did not have any amendments. She clarified that the amendments listed in the hylaws had already passed, notirig the last amendment was to change the meeting time to 6 p.m. Fair stated that he would like to see the meeting start time back to 7 p.m. but it was the consensus of the other members to keep it at 6 p.m. There were no recommended changes. Consideration to review and accept the year-end financial reoorts for the HRA General Fund and TIF Fund as prepared hy HRA Treasurer WoIfsteller. Koropchak advised that Wolfsteller had prepared the financial reports, but was unable to attend the meeting. She noted that she would go through the report with the members in his place. lIRA general funds refers to nonrestrictive funds, if subtracting cash on hand, this would give a total cash balance of all T1F districts. They discussed the dollars allocated f()f purchasing industrial land and Barger asked about a site on IIwy 25 and would they want to look into that parcel to see what the property is being sold for as this was an area they had discussed previously for industrial land. Koropchak advised of the districts that had been decertified as well. Barger asked what will happen with the transfer of the bank and library and Koropchak advised that the tax increment from the former Marquette Bank was approx $11,000 per year and it will now become tax exempt. She also advised of the TIF district summaries. Lahr questioned the total loans incurred and what loans would this refer to and she advised where the totals came from. A MOTION WAS MADE BY STEVE ANDREWS TO ACCEPT THE fINANCIAl, INFORMATION AS PREPARED. DARRIN LAHR SECONDED THE MOTION. MOTION CARRIED UNANIMOUSL Y. II. Consideration to authorize payment of HRA bills. 12. A MOTION WAS MADE BY I3ILL FAIR TO AUlllORIZE PAYMENT OF THE HRA HILLS. STEVE ANDREWS SECONDED 'fHE MOTION. MUf!ON CARRIED UNANIMOUSL Y. Consideration of Executive Director's Report. Koropchak provided the report and provided a letter signed by local businesses in support of 6 . . . the 5 year extension for TIF. 13. Committee Reports. There were no reports. 14. Other Business. None 15. Adjournment. I IRA M illlltes - 04/02/03 A MOTION WAS MADE HY BILL FAIR TO ADJOURN THE MEETING AT 7:30 P.M. BRAD BARGER SECONDED THE MOTION. MOTION CARRIED UNANIMOUSL Y. ~ HRA Chair Rec~ 7