HRA Minutes 12-03-2003
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MINUTES
MONTICELLO HOUSING ANI> REDEVELOPMENT AlJTHORITY
Wednesday, December 3, 2003 - 6:00 p.m.
505 Walnut Street - Bridge Room
Commissioners Present:
Vice Chair Bill Fair, Darrin Lahr, and Dan Frie.
Commissioners Absent:
Chair Steve Andrews and Brad Barger.
Council Liaison Prcsent:
Roger Carlson.
StaffPrescnt: Ollie Koropchak.
I. Call to Order.
Vice Chair Bill Fair called thc HRA meeting to order at 6:05 p.m.
2. Considcration to approve the November 5. 2003 BRA minutes.
DAN FRIE MADE A MOTION TO APPROVE THE NOVEMBER 5. 2003 HRA
MINUTES. SECONDED BY DARRIN LAHR AND WITH NO CORRECTIONS OR
ADDITIONS, THE MINUTES WERE APPROVED AS WRITTEN.
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Consideration of addinl.!: or removing items from the aQcnda.
Executive Director Koropchak requested Item No.7 be removed from the agenda at the
request of Dcveloper Mike Cyr. Additionally, Koropchak requested Item No. 9C be
placed under Item No. 11, Other Business.
4. Consent A!.!enda.
None.
5.
Consideration to review and approve the Contract for Private Development between
Mastcrs Fifth Avenue and the BRA for Landmark SllUare Phase II and to authorize
execution of the Contract.
Brad Johnson, Lotus Realty Serviccs. informed the HRA Oilice that he nor Barry Fluth
would attcnd the lIRA meeting of December 3 as their immediate efTorts are to
concentrate on revising the Landmark Square II site plan. The Planning Commission
approved the Conditional Use Permit to allow ground level residential within the CCD
subject to staff comments, DAT recommendation, and the eleven conditions in Exhi bit Z.
Theref()re, the I IRA will review the Contract as prepared by Attorney Bubul but delay
approval until January.
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HRA MINUTES - 12/03/03
Highlights of the Contraet reviewed by the liRA: 1. Definition ofImprovements; 2.
Administrative Cost Estimates; 3. Land Acquisition Costs; 4. Conditions required for
disbursement of $157,500 "First Disbursement"; 5. Conditions required for disbursement
of $125,000 "Second Disburscment" including deposit of irrevocable bank letter of
credit; 6. No disbursements will be made after June 30, 2004; 7. First Disbursement
treated as loan and repaid to HRA at 6.5% interest beginning August 1,2006 and ending
February 1,2022; 8. If on the Payment Date therc is an insufficient amount of available
tax increment to make payment, Developer agrees to pay difference between payment
schedule Exhibit B and available tax increment received by HRA; 9. Construction Plans
approved by Building Official and HRA; 10. Commence construction of duplex by May
1, 2004 and substantial completion of the minimum improvements by October 1, 2006;
11. Certificate of Completion; 12. Assessment Agrcement - minimum market value of
the minimum improvements as of January 2, 2005 through maturity date is $1,850,000;
13. Partics recognize that once a unit is completed and sold; the Asscssment Agreement,
review of taxes, and right to collect delinquent taxes shall not apply to that residential
unit within the minimum improvements; 14. The Assessment Agreement shall inelude a
termination provision; 15. Evidence of mortgage financing; and 16. Asscssment
Agreement. The commissioners saw no need for adjustments or changes.
In order to meet the required June 30, 2004, disbursement date for thc $125,000 (Second
Disbursement) and for consistency between the motion of the HRA and the Contract, the
commissioners were asked to amend the liRA motion of October 1,2003 to include
acquisition. DAN fRIE MADE A MOTION TO AMEND THE OCTOBER 1,2003
MOTION TO READ: TO OFFER TIF ASSISTANCE IN AN AMOUNT NOT-TO-
EXCEED $125,000 FOR COSTS ASSOCIATED WITH ACQUISITION, DEMO,
ELECTRIC POLE RELOCATION, AND UTILITY AND PARKING LOT
CONSTRUCTION ASSOCIATED WITH PI lASE II OF LANDMARK SQUARE.
DOLLARS TO BE EXPENDED FROM TIF DISTRICT NO. 1-22 FUND. SECONDED
BY DARRIN LAHR AND WITH NO FURTHER DISCUSSION, THE MOTION
CARRIED.
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Continued - Consideration to hear updates on potential TIF District No. 1-22 projects:
A.
Redevelopment of a portion of Block 52 and update on Planninl.!: Commission
meeting for Comp Plan Amendment.
Koropchak updated the commissioners on the action taken by the Planning
Commission on December 2,2003. The Comp Plan amendment for Block 52 was
denied at the Planning Commission meeting on a 2-1 vote and moves forward to
the City Council on December 8, 2003.
Given the Planning Commission outcome, Developcr Steve Johnson would not
attend the HRA meeting and informed Koropchak that all was not lost at the
Planning meeting. Walgreen's is ready to go and the other parcels such as
Kjellberg is at the option of the HRA for redevelopment. Lahr felt the same as
before, that in the future a Block 52 project consistent with the Comp Plan will be
feasible. Much like Elk River. Koropchak reminded the commissioners of their
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HRA MINUTES - 12/03/03
B.
options for TIF District No. 1-22 or Block 52:
1. Authorize or not authorize the use of tax increment.
2. OtTer to buyout Johnson and later solicit an RFP (HRA obligated to
relocation benefits).
3. No additional projects, pay off the bond proceeds early. Perhaps establish
a new district in the future.
4. Agree or not agree to sell the HRA lot.
5. Lobby to extend the five-year activity rule for TIF District No. 1-22.
No action taken.
Redevclonrnent of a portion of Block 36 - Although Bruce I-Iamond requested to
bc on the HRA agenda, no one appeared bef()[e the HRA. Koropchak reported
having talked with Cindy Ilamond that afternoon, Bruce was in Atlanta and Cindy
indicated Mike would be attending the meeting. No discussion or action
required.
Discussion and action whether to lobby for extension of the 5-year activity rule
for District No. 1-22.
DARRIN LABR MADE A MOTION OF NO INTEREST TO INTRODUCE A
BILL IN 2004 REQUESTING THE EXTENSION OF THE 5- YEAR ACTIVITY
RULE FOR TIF DISTRICT NO. 1-22. SECONDED BY DAN FlUE AND
WITII NO FURTHER DISCUSSION, THE MOTION CARRIED. Reasons: I.
The environment of the local legislators and downtown property owners has not
changed. 2. It was doubtful a bill would be enacted prior to issuance of
permanent bonds on May 5, 2004.
C.
7. Consideration to discuss concept for development of Rut}' Auto parcel. ReclUested by
Mike Cyr.
Removcd.
8. Consideration to authorize payment ofHRA bills.
DARRIN LAIIR MADE A MOTION TO AUTHORIZE PA YMENT OF THE HRA
MONTHL Y BILLS. SECONDED BY DAN FRIE AND WITII NO FURTHER
DISCUSSION, THE MOTION CARRIED.
9. Consideration of Executive Director's Report.
With Item No. 9C placed under Item No. 11, the commissioners accepted the Executive
Director's report as written. Additionally, Koropchak inq uirecl as to the status of the
rcquest by the HRA to hold a workshop with the City Council and Planning Commission.
Council Liaison Carlson inf()[Jned the commissioners he has addressed this with the
Mayor.
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10.
Committee Reports.
A. Industrial Development Group - Dan Frie reported a non-combining Letter of
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HRA MINUTES - 12/03/03
B.
Intent with terms and conditions to purchase approximately 114+ acres of Otter
Creek Crossing was prepared by Administrator Wolfsteller and submitted to John
Chadwick the Wednesday prior Thanksgiving. Koropchak added that the [DC is
developing bullet points and thereafter a couple members volunteered to lobby the
Council members. Frie volunteered to lobby on behalf of the HRA.
Marketing Subcommittee - Darrin Lahr reported the Marketing Committee agreed
to partner with the Chamber on a billboard promoting the Trumpeter Swans. The
billboard located along 1-94 by Albertville will be ready around the first week in
December. This a three-month trial.
11. Other Business.
The commissioners reviewed a letter to the City Administrator requesting seven
decertified TIF Districts be closed-out. This a recommendation of the liRA financial
consultants, Ehlers & Associates. Each district's administrative expenses werc verified
and adjusted if needed to meet the 10% actual incremcnt expenditure rcquirement. The
total amount of tax increment to be returned to the County is $246,002. Additionally, the
letter request that upon the City receiving their share of thc reimbursement from the
County, this amount bc deposited in the Industrial Development Reserve Fund. The
commissioners were asked to authorize this administrativc task.
DARRIN LAHR MADE A MOTION TO AUTHORIZE CLOSE-OUT OF
DECERTIFIED TlF DISTRICT NOS. 1-7, 1-8, 1-9, 1-11, 1-12, 1-16, AND 1-18 AND
RECOMMENDED THE REIMBURSED DOLLARS FROM THE COUNTY BE
DEPOSITED IN THE INDUSTRIAL DEVELOPMENT FUND. DAN FRIE
SECONDED THE MOTION AND WITH NO FURTHER DISCUSSION, THE
MOTION CARRIED.
Dan Frie agreed to serve another 5-year tcrm as commissioner of the HRA. His name
will be forwarded to the City Council for appointment in January.
12. Adjournment.
OARRIN LAHR MADE A MOTION TO ADJOURN THE HRA MEETING.
SECONDED BY DAN FRIE AND WITH NO FURTHER BUSINESS, THE BRA
MEETING ADJOURNED AT 7:20 P.M.
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HRA Vice Chair
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Executive Director \.
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