HRA Minutes 06-14-2004
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MIN{]TES - SPECIAL MEETING
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Monday, June 14,2004 - 6:00 p.m.
505 Walnut Street - Mississippi Room
Commissioners Present:
Chair Bill Fair, Darrin Lahr, and Steve Andrews.
Commissioners Absent: Brad Barger and Dan Frie.
Council Liaison Absent: Roger Carlson.
Staff Present: Riek Wolfsteller and Ollie Koropchak.
Guests: Mark Ruff~ Ehlers & Associates, Inc.
I. Call to Order.
Chair Bill Fair called the special HRA meeting to order at 6:00 p.m. declaring a quorum.
2. Consideration to approve the June 2, 2004 liRA minutes.
Commissioner Andrews made a motion to approve the June 2. 2004 liRA minutes. Commissioner
Lahr seconded the Inotion and with no corrections or additions, the minutes were approved as
written.
3.
Consideration of adding or removing items from the agenda.
Koropchak requested the addition of two items undcr 6. Other Business. Authorization to pay liRA bills
and interest to purchase property at 725 West 3 Street.
4. Consideration to approve a Resolution authorizing cxecution of a Tax Increment Plcdge
Agreement with the Citv of Monticello relating to $945,000 Taxable G. O. Tax Increment Bonds,
Series 2004A.
The HRA is asked to adopt a resolution authorizing execution of a Tax Increment Pledge Agreement with
the City of Monticello for the $945,000 Taxable G. O. Tax Increment Bonds. The Pledge states the HRA
pledges the tax increment received from TIF District No. 1-22 to the payment of the principal and interest
on the Bonds in an amount sufficient to pay 105% of the principal and interest due. The City Council is
expected to award the sale of the $945,000 Bonds at their regular schedulcd meeting at 7:00 p.m.
Initially, in ./uly 2001, the City sold temporary Taxable G.O. Tax Increment Bonds in the amount of
$2,150,000. The temporary bonds were fIX a term of not greater than three years. Unused proceeds
fhHl1 the 200 I issue is $1,308,985.00 resulting in a par amount of $945,000 f<x the 2004 bonds. The HRA
commissioners were informed of the decision by Barry Pluth on June 11,2004, to not move f()rward with
the L,andmark Square II project due to timing and monetary reasons which reduced the amount of the
current bond sale.
HRA Minutes - 06-14-04
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Mark Ruft~ Ehlers & Associates, Inc., reported the lowest bid came in at an interest rate of 5.1 % for the
taxable bonds. Additionally, he reported the City's Bond Rating by Moody's improved from a A3 to A2.
Asked about rates for tax exempt bonds, Ruff estimated under 4.1 %.
Commissioner I"ahr Inade a motion to approve a resolution authorizing execution ofa T(L'( Increment
Pledge Agreement with the Ci(Y (~f Monticello relating to $945,000 Tawble General Ohligation Tax
Increment Bond\', 5,'eries 2004A Seconded by Commissioner Andrews and with nofitrther
discussion, the motion carried.
5. Executive Director's Report.
Koropchak distributed a letter addressed to Barry Fluth summarizing his request to withdraw from the
Landmark Square II project because of timing and monetary reasons. The letter was drafted on the
suggestion of the HRA Attorney.
Koropchak updated the commissioners on the meeting with 80b Cunningham relative to the proposed
Walgreen's project for Block 52. At the direction of Walgreen's, TOLD Development has withdrawn
from redevelopment of Bloek 52 due high cost of acquisition and unwilling sellers, Walgreen's remains
interested in Monticello and discussed optional sites both in the downtown area and south of 1-94.
6. Other Business.
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Add on items: Koropchak requested a motion to pay monthly HRA bills as the HRA will not meet until
August. Commissioner Lahr Inade a Inotion to authorize paynlent of the monthly HRA hills.
Seconded by Conunissioner Andrews and with nofitrther discussion, the motion carried
Given the commissioners agreed to reserve $461,352 from the TIF District No. 1-22 land sale proceeds
and tax increment earnings (outside 5-year rule) for the purpose of redevelopment projects, Koropchak
asked the commissioners of the their interest to acquire a home located at 725 West 3 Street (across from
the Legion Club on Elm and 3 Street.) Koropchak infcml1ed the commissioners that the owner called as
she and her husband were in the process of a divorce explaining the house needed repairs. Koropchak
had asked f()r a price but she was unprepared to answer. The commissioners agreed and requested a
purchase offer and ifneed be would hold a specialmceting for action. The commissioners also agreed on
the importance to first cstablish a criteria before moving forward on a redcvelopment loan or other
program. Working with the Habitat for Humanity or Block 54 projects wcre possible options. Chair Fair
requested the topic of rcdcvelopment programs be on the August HRA agcnda for further discussion and
requested Koropchak call for critcria examples from other communities.
7. Adiournment.
('ommissioners Lahr made a motion to (((?journ the special HRA /11eeting. Seconded hy ('o/1/1nissioner
Andrews and with nofitrther business, the meeting at(journed at 6:20 p.11/.
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Ollie Koropchak, Recorder \
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