HRA Minutes 10-01-2003
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MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, October 1, 2003 - 6:00 p.m.
505 Walnut Street - Bridge Room
Commissioners Present:
Chair Steve Andrews. Vice Chair Bill Fair, and Dan Frie.
Commissioners Absent:
Brad Barger and Darrin Lahr.
Council Liaison Present:
Roger Carlson.
Staff Present: Ollie Koropchak.
Guests: Brad Johnson, Lotus Realty Services
Scott Douglas, Downtown Property Owner.
Mike O'Connor, Township resident.
Al Garber, James & Gruber
1. Call to Order.
Chair Andrews called the BRA meeting to order at 6: 1 0 p.m.
2.
Consideration to approve the September 3, 2003 HRA minutes.
BILL fAIR MADE A MOTION TO APPROVE THE SEPTEMBER 3, 2003 HRA
MINUTES. SECONDED BY DAN FRIE AND WrnI NO CORRECTIONS OR
ADDITIONS, THE MINUTES WERE APPROVED AS WRITTEN.
3. Consideration of adding or removing items from the agenda.
A. Scott Douglas, submission of a letter from Keith Kjellberg. Under Item No.6.
B. Al Garber, request for TIF assistance. Under Item No.6.
C. Mike O'Connor, status of reimbursement for business relocation costs. Under
Item No.6.
4. Consent Agenda.
None.
s.
Consideration to discuss fundinl.!: gap of Landmark Square Phase II proiect, establish
public purpose, and determine level ofTIF assistance.
Koropchak informed the commissioners that since the September I IRA meeting
Wolfsteller and herself had met with Fluth and Johnson and identified options to narrow
the $234,872 gap. Thereafter, Wolfsteller, Mark Ruff, and herself met to further discuss
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HRA Minutes - 10/01/03
the options. Ruff suggested the HRA not debate the sources and uses statement numbers
but to answer the f(Jllowing questions: What is the value of the redevelopment project
(three homes f(Jr nine row houses and duplex?) Secondly, Koropchak reiterated the pros
and cons of the options discussed to close the gap. Brad Johnson noted on the developers
side there is some room for cost adjustments between $60,000 to $100,000. Bids arc
expected in next week reported Johnson. Thc developer's revised uses and sources
statcment indicated TIF at $188,000 and a gap of $231 ,000.
HRA commissioners noted the cost for redevelopment of two substandard homes at
$295,000, this a high cost for higher density. In order lor the project to proceed, the need
is $188,000 plus $125,000 gap financing according to Johnson. Commissioner Andrews
liked the project but not that kind of money. Frie felt the ncighborhood concept was a
viable project and felt there was TIF dollars. Frie suggested $135,000 gap and Fair
suggested $75,000 gap. fair noted his disappointment in moving forward without input
from the two commissioners absent. Andrews said he liked the project and it was
consistent with the downtown revitalization plan.
DAN FRIE MADE A MOTION TO OFFER T1F ASSISTANCE IN AN AMOUNT
NOT-TO-EXCEED $157,500 NPV AT 6.5% INTEREST RATE COMMENCING
PA Y ABLE 2006 AND OVER THE LIFE Of THE DISTRICT FOR COSTS
ASSOCIATED WITII ACQUISITION OF SUBSTANDARD IIOMES. BILL FAIR
SECONDED THE MOTION AND WITH NO FURTHER DISCUSSION, THE
MOTION PASSED UNANIMOUSLY.
DANFRlE MADE A MOTION TO OFFER TIF ASSISTANCE IN AN AMOUNT
NOT-TO-EXCEED $125,000 fOR COSTS ASSOCIATED WITH DEMO, ELECTRIC
POLE RELOCATION, UTILITY AND PARKING LOT CONSTRUCTION
EXPENDED fROM THE TIf DISTRICT 1 ~22 FUND. STEVE ANDREWS
SECONDED THE MOTION AND WITH NO FURTHER DISCUSSION, THE
MOTION PASSED UNANIMOUSLY.
6.
Continued - Consideration to hear updates:
A. Redevelopment of a portion of Block 51 .
No update.
B. Redevelopment ofa portion of Block 52.
Concept C was reviewed at site review by staff and consultants. Planner Grittman
suggested retail/otTice on first f100r of proposed housing. Particularly. the northeast
corner, as this is the northerly entrance to the commercial district of Monticello.
Secondly, he suggested zero lot-line along Broadway consistent with the Comp Plan.
These suggestions or recommendations forwarded to the developer.
Update from Steve Johnson via Koropchak: Still working with developers on design
concept. Plan to be at the November HRA meeting.
Scott Douglas on behalf of Keith Kjellbcrg submitted a letter from a potential lessee.
Kjellberg wants to improve the looks of his building reported Douglas but is reluctant to
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HRA Minutes - 10/01/03
make the investment because of the lack of decision by the HRA. The HRA was
encouraged to not drag their feet about the future of Block 52. The commissioners
responded that redevelopment projects are driven by developers and noted that eligible
TIF District No. 1-22 expenditures must be expended by developers no later than June 30,
2004.
C. Other request for financial assistance.
a) Koropchak noted the request for TIF assistance from James & Grubcr. Although the
proposcd project is consistent with the Revitalization Plan and a great project, thc project
appears to be an expansion not a redevelopment project (no demolition). If the existing
building qualifies as "substantialIy substandard", perhaps the proposed project would
qualify for TI F. AI Garber asked for written information as to "how they could qualify
for TI F assistance'?" The commissioncrs askcd Koropchak to provide copies of the
Minnesota Statutes and local criteria for the "but for" test.
b) At the request of Bruce I lamond, Koropchak reported on the proposed plans to
construct a ncw officc/retail building on Lot 9, Block 36 and to refurbish the existing
building on Lot 8, nIock 36 constructing an cxtcrior facade as a single building. Mr.
lIamond requested TIF assistance and requested the lIRA have some discussion. Once
again, a great project similar to the James & Gruber project. Mr. Ilamond plans to attend
the EDA meeting to request matching funds; although, the program has been
discontinued. The HRA suggested demolition of the existing building duc to its age and
being held together with a cable. Thc commissioners askcd Koropchak to provide copies
of the Minnesota Statutes and local criteria for the "but f()[" test to Hamond, the same as
to James & Gruber.
c) Mike O'Connor, previous owner of property along Front Street, appeared before the
HRA. He inquired as to the status of his business relocation cost stating he had received
about $3,000 and has heard nothing more. The commissioners noted the HRA paid a fair
price for acquisition of the home and paid the residential relocation costs. If a business
existed, the business was illegal or in non-compliance of the City Zoning and Ordinance.
The commissioners advised city staff not to research furthcr and suggested O'Connor
check with his attorney.
7. Consideration to authorize payment of HRA bills.
DAN FRIE MADE A MOTION TO AUTHORIZE PAYMENT OF THE OCTOBER
HRA nILLS. SECONDED BY nILL FAIR AND WITT I NO FURTHER
DISCUSSION, THE MOTION PASSED UNANIMOUSLY.
8.
Consideration of Executive Director's Report.
With no questions to the written report, Koropchak encouraged the commissioners to
attend the UMC Open House.
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HRA Minutes - 10/01/03
9.
Committee Reports.
A. Marketing Subcommittee - No repoli.
B. Industrial l,and Options - Frie representing the HRA reported on the progress of
the group gathering information for the purpose of recommending an industrial
site for acquisition. The group is considering three sites: Chadwick, Weinard, and
Graser sites. The small group will present their recommendation to the} IRA and
IDC in November requesting action to forward to the City Council on November
10.
10. Other Business.
Bill Fair suggested the City Council, HRA, and Planning Commission members hold a
joint meeting and asked Council member Roger Carlson to f<J[ward the suggestion.
11. Adiournment.
BILL FAIR MADE A MOTION TO ADJOURN THE HRA MEETING. SECONDED
BY DAN FRIE AND WITH NO FURTHER BUSINESS, THE HRA MEETING
ADJOURNED AT 7:55 P.M.
~LL__
HRA Chair
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