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HRA Minutes 09-01-2004 . . . MINUTES MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY Wednesday, September 1, 2004 - 6:00 p.m. 505 Walnut Street - Bridge Room Commissioners Present: Chair Bill Fair, Dan Frie, Darrin Lahr, and Steve Andrews. Commissioners Absent: Brad Barger, Roger Carlson. Staff: Rick Wolfsteller, Ollie Koropchak, and Angela Schumann. 1. Call to Order. Chairman Fair called the meeting to order at 6:00 PM, declaring a quorum, noting the absence of Commissioner Barger, and the absence of Liaison Carlson. 2. Consideration to approve the August 4. 2004 HRA minutes. MOTION BY COMMISSIONER ANDREWS TO APPROVE THE MINUTES OF THE AUGUST 4TH, 2004, HRA MEETING. MOTION SECONDED BY COMMISSIONER LAHR. MOTION CARRIED. 3. Consideration of adding or removing items from the agenda. 4. Consent Agenda A. Consideration to approve the Certificate of Completion associated with the Contract for Private Redevelopment between the HRA, I Jans Hagen Homes, and the City of Monticello. MOTION BY COMMISSIONER ANDREWS TO APPROVE TIlE CONSENT AGENDA. MOTION SECONDED BY COMMISSIONER FRYE. MOTION CARRIED. 5. Consideration to authorize entering into a Preliminary Development Agreement for redevelopment of Landmark Square II. Commercial proiect and deposit of$7,500. Bard Johnson addressed the lIRA on behalf on Masters 5th Avenue. Johnson presented a concept plan which had been discussed with City staff earlier that day. It is their plan to move forward with the concept later in the fall or as late as next spring. It is their understanding that the drive-through represented on the plan will require a conditional use permit. However, in discussions with stall no major flaws were found in the plan. A brief discussion commenced on the existing garage structure near the site. Johnson indicated that the garage is unable to be moved at this time. . . . The proposed mix f()r the Landmark Square Phase II project includes both restaurant and retail opportunities. Johnson stated that they are currently in illl aggressive lease mode. 'The buildings are planned to be one and a half stories, somewhat like the downtown Maple Grove concept. It was noted that one utility pole will remain and will be included in the landscaped island. Utilities would be moved underground. Limited parking options prohibit second story oHlce building. Johnson indicated that the only remaining item to be determined is the feasibility for angled parking feasibility Locust Street due to easement/boulevards concerns. The developers will work with engineering on this item. They will also most likely add windows along coffee shop wall. Another possibility is moving May from rock-faced EFIS to brick. Fluth stated that they had purchased the properties individually and then brought in the corporation to develop the TI F assistance. Koropchak indicated that she had tried to contact Steve Buble regarding the timing of the acquisition and demolition as part of applicable costs. Koropchak questioned if the establishment of the T1F district would qualify in the but-for test. Koropchak stated that because this is most likely a pay-as-you-go, T1F can pay for site improvements. Koropchak noted staffs comments provided in the stafTreport, including the angled parking on Locust and storm drainage off the roof, as well as the CUP requirement. Koropchak asked if Fluth was at a point where he would like to enter into the preliminary development agreement and provide the deposit of $7,500. Fluth stated that he would recommend authorization of the development agreement. Frie asked if this would generate enough TIF to make the project work. Johnson indicated that the leasing of these buildings makes managing the project more feasible. MOTION BY ANDREWS TO AUTHORIZE ENTERING INTO A PRELIMINARY DEVELOPMENT AGREEMENT FOR LANDMARK SQUARE II, COMMERCIAL WITH A DEPOSIT OF $7,500. MOTION SECONDED BY COMMISSIONER LAHR. MOTION CARRIED. Koropchak indicated that the lIRA's signed copy of the DA would be available to Fluth at City Hall. It was noted that the developers would want to clarify the number ofliquor licenses available as related to this project. 6. Consideration and feedback from meeting with lender and builder relative to the housing remodel and redevelopment program criteria concept of the City of RichfIeld. Fair and Koropchak reported that they had met with Mike Cyr, a builder in the community and Paul Kleinwachter of 1 sl Minnesota Bank regarding the project concept. Koropchak's report outlined somc of the discussion at that meeting. Both Cyr illld Kleinwachter felt that the first year would bc more of a pilot project, using a limitcd . mnount of funds. Other ideas rcsulting from the meeting included involving those who could help market thc program for the City. Pilot project could also involve more of an investment by the lIRA per individual involvement, and a shorter forgivcness time frame. It was also suggested that the HRA consider holding a workshop to discuss the idea. Koropchak indicatcd that both 1 sl Minnesota and Cyr indicated that they would be interested in working with the HRA on such a project. Koropchak distributed materials illustrating City home valuations in the downtown area. Those valuations includc $100,000 and $100,000 - $150,000 singlc-family homes. The diagrams provide the lIRA with an idea of those that may meet thc designed criteria. Fair stated that the ERA needs to decide what improvcments would he part of the program. Fair noted that some ofthe old City lots may not support today's larger homcs. It was noted that the maps do not provide information on what type of structure may be on the lot. Frie also noted that perhaps the assessor's information may not have bccn updatcd, increasing the justifIed value. Cyr and Kleinwachter had discussed major expansions as qualifying criteria. Fair reminded the llRA that they may want to also consider taking a sevcrely deteriorated home and making $60,000 worth of improvements would be a major improvement. . Koropchak refcrred to Richfield's program, requiring a significant amount of investment to maximize the HRA's contribution. Andrews asked what the goal should be, for examplc higher taxcs. He noted that improvements would ultimately create higher valuations. Koropchak stated that Richfield's program required increasing livable space. Frie stated that perhaps the HRA's goal should be updating or face-lifts to prevent further deteriorations. Minimum expense levcls needs to be set. hie asked who would determine the actual valuation of the improvements. Koropchak stated that O'Neill and Patch were provided with the information. Fair stated that by providing the information to thc local builders, it might help curb the need for a lot of staff review. Koropchak stated that the City's inspector would sti II need to make a determination of whether the buildings are even suitable ll1f the project. Lahr stated that one of the major goals should be to keep homes owner-occupied through these upgrades. . Fair asked Frie as a realtor whether this program would be an incentive to buyers. Frie responded that it would require a certain kind ofbuycr. Fair stated that in many cases, it may not be worthwhile under $100,000. Perhaps a bctter targct would bc the homes in the $100,000- $150,000. Fair asked if HRA wanted to consider it as a pilot project. Lahr re-stated owner-occupied goal. Fair asked if Koropchak could provide a list of the . . . property owners in thc $100,000-$150,000 range. Andrews requested that the HRA narrow the scope and prioritize in order to move forward. Lahr recommended that the program casting a wide net for the pilot projcct, then consider all those that apply. Fair recommended limiting the amount of funding for the first year. HE cited an example of a percentage of 20%, capped at $20,000 per project for those homes undcr $150,000 in the core community. The program could be intercst free, if after five years, there is no re- payment. If the property is sold within that fivc years, it has to be paid back. Koropchak will develop the criteria based on the discussion and bring it back to the HRA. Fair rccommended also speaking with Patch for input from the Building Department. 7. Consideration to review a second Purchase Agreement for acceptance, reiection, or counter-offer for the property located at 725 West 3rd Street. MOTION BY COMMISSIONER FRIE TO REJECT THE PURCHASE AGREEMENT AS PRESENTED AND NOT INTERESTED. MOTION SECONDED BY LAUR. MOTION CARRIED. 8. Consideration to authorize payment of HRA bills. MOTION BY COMMISSIONER ANDREWS TO AUfHORIZE PAYMENT OF HRA BILLS. MOTION SECONDED BY COMMISSIONER FRJE. MOTION CARRIED. 9. Consideration of Executive Director's Report. Koropchak reviewed her report, indicating that Hans I-lagen paid their balance from notices. Fair inquired if all town homes have been sold. Koropchak stated that she understood that to be the case. Koropchak has started reviewing Twin City Die Cast's information for TIP conformance. According to what they've provided, they do meet their job requirements. . . . 10. Committee Reports. The HRA held a brief discussion on keeping the downtown vibrant, through projects such as the development of entertainment venues and options. II. Other Business. None. 12. Adjournment. MOTION BY COMMISSIONER LAHR TO ADJOURN AT 7:20 PM. MOTION SECONDED BY COMMISSIONER FAIR. MOTION CARRIED. 4?Hb' HRA Chair ~ .. dJi:l/,,/;2~..- sec;~