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HRA Minutes 09-03-2003 . . . MINUTES MONTICr~~LLO HOUSING AND REDEVELOPMENT AUTHORITY Wednesday, September 3, 2003 - 6:30 p.m. 505 Walnut Street - Bridge Room Commissioners Present: Vice Chair Bill Fair, Darrin Lahr, Dan Frie, and Brad Barger, and Council r ,iaison Roger Carlson. Chair Steve Andrews Rick Wolfsteller, Ollie Koropchak, and Lori Kraemer. Absent: Staff: I. Call to Order. Vice Chair fair called the meeting to order at 6:40 pm. 2. Consideration to approve the August 6, 2003 HRA minutes. A MOTION WAS MADE BY DAN FRIE TO APPROVE TilE MINUTES OF THE AUGUST 6,2003 HRA MEETING. DARRIN LAITR SECONDED THE MOTION. MOTION CARRIED UNANIMOlJSL Y. 3. Consideration of adding or removing items from the agenda. None 4. Consent Agenda. A. Consideration to approve Certificate of Completion for UMC. Recommendation: Approve the certificate of completion for UMC. A MOTION WAS MAD!': BY DAN FRTE TO APPROVE TilE CONSENT AGENDA, AS WRITTEN. BRAD BARGER SECONDED THE MOTION. MOTION CARRIED UNANIMOUSI,Y. 5. Consideration to review revised concept design, requested TIF assistance. al1c,LTJEJ;asl:! flow proiections for Phase II of Landmark Square and to authorize HRA Attorney to begin drafting the Redevelopment Agreement. Ollie Koropchak, Executive Director, advised that Barry FIuth and Brad Johnson were present and would be giving the HRA members an update on their proposed project as well as their request for TfF assistance. She provided cash now numbers provided by Ehlers & Associates, as well as numbers run by Brad Johnson and herself. Koropchak advised that city staff had reviewed the concept plan and given their input. The HRA should now review the concept and discuss the amount of assistance they arc willing to provide. Brad Johnson advised that they revised the plan. to meet the "I'll' time frame. from 12 units to J J. increased the unit sizes. suhtracted 4 carriage houses in the back. and re- designed the parking lot making it more useable by the restaurant and tenants. He felt this ,"vas close to what the planning stailhad directed. Johnson referred to the agreement the lIRA had with Han's Hagen and that they were using it as a guide for their project. I-IRA Minutes - 09/03/03 . He also advised that they had acquired one property, working on 2 others, as well as working on installation of utilities, noting there were added costs. Johnson advised their costs increased to $687,000 for site acquisitions, which increased the unit prices as well. The gap they estimate is at $234,000, after Tlf. They are looking for city staff and the HRA to provide input on possible solutions to make the project work, and asking f(.)r the HRA's suppol1. Johnson stated that they felt a benefit to the city would be a new parking lot. Johnson advised that they did not feel rental units or offices would work for this project. They did go forward and stub in all 3 services before paving, which saved approx. $60,000, which Fluth agreed to pay for. Bill Fair asked Koropchak if stafThad reviewed the numbers frarn Johnson, but she was not sure if they were the same numbers that shc had previously seen. Dan frie felt that if the city wanted the project to move forward they would havc to expect to pay up to possibly 50% of the costs. . Fair stated the I-IRA would need to decide at what cost they would agree to do downtown redevelopment adding that he felt the project fit with the Downtown Redevelopment Plan. They further diseussed if they felt the investment was worthwhile and it was noted that they would be replacing two substandard and one newer home, whieh will increase the tax capacity, but it will also take a longer period oftime to recoup at that high of a gap. Fair asked ifthey could take 30 days to work on the numbers and asked the board to decide whether to reduce the gap, sharc the gap, or to proceed with the project, and to come back with a recommendation. A MOTION WAS MADE BY DAN fRJE '1'0 CONTINUE TIlE ITEM FOR 30 DAYS FOR STAFF AND DEVELOPER 'TO DEFINE THE NUMBERS. BRAD BARGER SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. The HRA asked Council Liaison Carlson if the city council was supportive of redeveloping the downtown and he felt they were. 6. Continued ~ Cons"ideration to hear updates: I. Redevelopment of a portion of Block 5 I . Pat Sawatzke gave a brief summary s~ating things werc progressing slowly and he should have acquisition of the property by October. I Ie did not expect to have any real news for the next several months. 'fhe sehematic that he previously presented is still being considered. 2. Pha~e L IT, and III design G_oncept for.a portion of Block 5~. . Fred KaUer provided sketch plans f()r 3 proposals, the one that they are most inten:~led in would require that the city grant a variam:e to the ;:CIll 101 line requirement. They are working with both a regional retailer and a national retailer; approx. $10.2 million dollar program; both tenants are visiting Montieello 2 . . . liRA Minutes - 09/03/03 and KaUer would like to be able to tell them which direction the HRA would like to proceed. Katter advised that they would like to work with the regional tenant as they feel it would be a better fit for Monticello, although either tenant would bring and keep traffic downtown. The 48 units of apartments would require 1.5 parking spaces per unit, 48 underground, and would require 25 additional spaces on the suri~lce. This adds residential housing downtown facing the river. Katter asked for direction from the HRA members prior to them approaching the current business owners regarding acquisitions, and assured the I1RA that they could meet the deadline of July I, 2004. It was the consensus of the liRA members that they preferred the Plan A sketch plans; aesthetics will be a major factor. Frie also asked Katter about the possibility of breaking down the north half of the block from the south so they could get a number for both sides. Koropchak also stated that the concept could be reviewed at the next staff site review meeting, and the planner could review the parking and offer feedback. '"' -) . Estimated balance of Temporary nF District No. 1-22 Bond. Bill Fair noted that they toured this area before the start of the meeting and advised of the recommendations made by Ehlers & Associates. Koropchak stated that the lIRA would have about $ L235,OOO, if no new projects are started, and Ehlers suggested the money could be used for public inlprovements, property aequisition, etc., and that the money would need to be spent by July of2004. 7. ConsideratiQn to authorize payment of 1-lEA bills. A MUflON WAS MADI: I3Y DAN FRIE TO AUTHORIZE PA YMEN'T' OF THE lIRA BILLS. DARRIN L.AHR SECONDED THE MOTION. MOTION CARRIED UNANIMOUSL Y. 8. Consideration of Executive Director's Report. Executive Director Koropchak provided the report and added the following: · The Marketing Committee's idea for the Wright County Economic Development golf tournament. · Sent a letter to another medical company and is working with Ed Sorgatz. · She provided a copy of a letter from Sunny Fresh looking to be Inore involved in cOllununity projects_ She advised that they will be holding (l meeting and asked the lIRA for ideas. Some ideas were for downtown redevelopment, possible iee arena, and parking. Fair stated he would like to attend. 9. CUlluniuee Rqxlrts, 10. Marketing Subcommittee ~ Harger. None 3 . . . 10. Other Business. None II. Adiournment. HRA Minutes - 09/03/03 A MOTION WAS MADE BY DARRIN LAHR TO ADJOURN THE MEETING AT 8:20 P.M. DAN FRIE SECONDED THE MOTION. MOTION CARRIED UNANIMOUSL Y. ~r- 4