HRA Minutes 04-02-2003
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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
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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
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HRA Minutes - 04/02/03
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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.
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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.
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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.
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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
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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.
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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
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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.
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HRA Chair
Rec~
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