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HRA Minutes 09-12-2007MINUTES MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY Wednesday, September 12, 2007 - 6:00 p.m. Bridge Room -Community Center Commissioners Present: Vice Chair Bill Fair, Brad Barger, and Dan Frie. Council Liaison Absent: Wayne Mayer. Staff: HRA Executive Director Ollie Koropchak Angela Schumann. 1. Call to Order. Chairman Fair called the meeting to order and declared a quorum. 2. Consideration to approve the August 1, 2007 HRA minutes. MOTION BY COMMISSIONER FRIE TO APPROVE THE MINTUES OF AUGUST 1, 2007. • MOTION SECONDED BY COMMISSIONER BARGER. MOTION CARRIED, 3-0. 3. Consideration of adding or removing items from the agenda. Koropchak added payment of bills as item 8. Barger noted that this is his last HRA meeting. The Council plans to appoint a temporary person for the purpose of formal motions. Frie asked if Mayer could be appointed. Koropchak stated that she thought perhaps the Council would appoint a previous commissioner. 4. Consent A eg nda. NONE. 5. Consideration to review for approval an application for Transformation Home Loan No.3 for the property located at 312 East River Street. Fair asked about the Building Official's report. Koropchak stated that the Building Officials' report was in the agenda and that Chief Building Official Anderson estimated value to upgrade is $24,000. It was originally $20,000. In • HRA Minutes - 09/12/07 2006 the estimated value was set at $127,000, so it is below the guidelines set for the loan program. Koropchak stated that the home qualifies as substandard. Koropchak stated that she assumed that the HRA didn't want to approve a Transformation Home Loan that didn't fix the items that are required to bring the home up to code. The recommendation from the Building Official is also attached. Those are added costs. Koropchak stated that there is a bank loan to buy the house. Based on the contractor's estimates, there are $38,225 of expenses. The bank and the applicant confirmed that they were willing to do the additional improvements recommended by the Building Official. Koropchak distributed a letter confirming the loan for purchase and noting dollars as a second mortgage from MNHFA. She stated that the HRA's mortgage will be a third mortgage. Fair asked for confirmation on the total loan amount. Koropchak stated builders cost plus $3,400, or up to 25%. Fair noted that the property is going from renter to owner occupied MOTION BY COMMISSIONER BARGER TO APPROVE AN APPLICATION FOR TRANSFORMATION HOME LOAN N0.3 FOR THE PROPERTY LOCATED AT 312 EAST RIVER STREET. • MOTION SECONDED BY COMMISSIONER FRIE. MOTION CARRIED, 3-0. 6. Consideration of a response to the HRA's offer from the owners of the property located at 101 Third Street East. Fair noted that they did not make a counteroffer. Koropchak stated that they just refused the offer. Fair asked if the Council is aware of this property as a potential purchase. Koropchak stated that individual members are aware, but she does not know if the whole group is. Fair asked if they are still struggling with space for the DMV. Koropchak stated that was undecided at this time. Fair stated that the HRA could send them a letter of consideration and if they are interested, the HRA is willing to hear alternative proposal. Fair noted that it is contiguous to City property. MOTION BY COMMISSIONER FRIE TO RECOMMEND THAT A LETTER OF NO INTEREST BE SENT TO THE PROPERTY OWNER. MOTION SECONDED BY COMMISSIONER BARGER. MOTION CARRIED, 3-0. • 2 HRA Minutes - 09/12/07 7. Consideration of an update• Summons - HRA and others named versus Metro Home Insulation, LLC (Transformation Home Loan - 511 Elm Street 1 Fair noted it as an update and that no action is required at this time. Koropchak reported that the HRA is named on a claim on behalf of Metro Home Insulation, that Dennis James, as contractor, did not provide payment for services. Koropchak stated that she had sent the summons information to the HRA attorney, who advised her to send the material to the City Attorney. As such, Tom Scott of Campbell Knutson responded to the summons on behalf of the HRA. Tom Scott also stated that he did talk to the lawyer representing Metro Home and they are trying to collect out of court. He did note that there were others that didn't get paid. Koropchak reported that she had a check written to the title company, and they had title insurance for $127,000 to do the improvements. Scott said that he called title company and they are no longer there. Koropchak stated she has authorized disbursement of HRA funds through the title company in the amount of $20,000. Koropchak stated that the final amount was not released until the project was done and the Building Official had done the inspection. Fair asked about lien waivers. Frie noted that some title companies are not good about collecting lien waivers. Frie noted that James shouldn't be allowed on other Transformation Home Loan projects. Frie also recommended that applicants should use the HRA's designated title company. The HRA mortgage is released after 5 years if they stay. There was no other action required for the HRA, as it was granted an extension on the summons. 8. Consideration to authorize payment of HRA bills Koropchak stated that the invoices included should represent the last invoices for the Walker In-Store project. She stated that the total for HRA legal expenses on the project is probably $18,000. The HRA should consider the legal expenses for such a small project. Barger asked what Walker paid for the land. Koropchak stated that they received a 5.5 acre parcel, with a developable acreage of 1.5. It was sold at $43,560 for 1.5 acres. Frie noted that they had paid a legal deposit, which is non-refundable, of $10,000. MOTION TO AUTHORIZE PAYMENT OF HRA BILLS BY COMMISSIONER BARGER. MOTION SECONDED BY COMMISSIONER FAIR. MOTION CARRIED. 9. Consideration of HRA Executive Report 3 HRA Minutes - 09/12/07 Koropchak provided her report and noted that in regard to the potential EDA and HRA consolidation, there will be a meeting of the personnel committee on the 20th and then a special workshop on Monday the 24th at 5:00. Frie noted that there was a good size group going to the Anoka-Ramsey Community College in terms of furthering the bio-science project. 10. Committee Reports. NONE. 11. Next regular HRA meeting. Pending outcome of upcoming workshops on the EDA/HRA merger. 12. Adjournment. MOTION BY COMMISSIONER BARGER TO ADJOURN. MOTION SECONDED BY COMMISSIONER FRIE. MOTION CARRIED, 3-0. • ? ~~ ~: Vice Chair • Secretary 4