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HRA Agenda 02-10-1999 . . . AGENDA MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY Wednesday, February 10, 1999 - 7:00 p.m. City Hall MEMBERS: Chair Steve Andrews, Vice Chair Bob Murray, Brad Barger, and Darrin Lahr. ST AFF: Treasurer Rick Wolfsteller, Executive Director Ollie Koropchak, and Recording Secretary Nancy Whalen. COUNCIL LIAISON: Brian Stumpf. 1. Call to Order. 2. Consideration of approve the January 6, 1999 BRA minutes and the January 20, 1999 Joint Council/Commissions minutes. 3. Consideration of adding agenda items. 4. Consent Agenda. A. Consideration to approve the Certificate of Completion for Allied Companies, LLC. 5. Consideration of items removed from the consent agenda for discussion. 6. Consideration to adopt priorities for redevelopment of the North Anchor and to appoint two HRA representatives to the North Anchor Subcommittee. 7. Consideration to authorize payment of monthly BRA bills. 8. Consideration of executive director's report. 9. Consideration of reports: a) Community Center Small Group - Bob Murray b) MCP - Steve Andrews c) Marketing Subcommittee - Darrin Lahr. 10. Other Business. 11. Adjournment. . . . MINUTES MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY WEDNESDAY, JANUARY 6, 1999 Members Present: Chair Steve Andrews, Vice Chair Bob Murray, Dan Frie and Darrin Lahr Members Absent: Brad Barger Council Liaison Absent: Brian Stumpf Staff Present: Deputy City Administrator Jeff O'Neill and Executive Director Ollie Koropchak 1. Call to order. Chair Steve Andrews called the meeting to order at 7:00 p.m. 2. Consideration to approve the December 9. 1999 HRA minutes. A MOTION WAS MADE BY BOB MURRAY AND SECONDED BY DARRIN LAHR TO APPROVE THE MINUTES, AS WRITTEN, OF THE HRA MEETING OF DECEMBER 9,1999. Motion carried unanimously. 3. Consideration of adding agenda items. No additional items. 4. Consent agenda. A. Consideration to approve the Certificate of Completion for Allied Companies. LLC. Executi ve Director Ollie Koropchak stated that, as of this date, the Certificate of Occupancy had not been issued on this property; therefore the HRA cannot approve the Certificate of Completion. A MOTION WAS MADE BY DARRIN LAI-1R AND SECONDED BY BOB MURRAY TO TABLE TI-IIS ITEM. Motion carried unanimously. 1 . . . B. Consideration to approve the Certificate of Completion for Blue Chip Development Company. Executive Director Ollie Koropchak stated that, as of this date, the Certificate of Occupancy had not been issued on this property; therefore the HRA cannot approve the Certificate of Completion for Blue Chip. A MOTION WAS MADE BY DARRIN LAIIR AND SECONDED BY BOB MURRAY TO TABLE THIS ITEM. Motion carried unanimously. 6. Consideration to review affordable housing market study and to approve TIP assistance for the redevelopment of the Klucas property with a recommendation to the City Council. Ollie Koropchak reviewed the agenda item stating that at the December 9, 1998, HRA meeting Brad Larson gave a presentation on the proposed concept plan for redevelopment of the Klucas property. Mr. Larson requested TIF assistance in an amount not-to-exceed $10,000 for site cleanup and a percentage of tax increment to reduce rental rates. Mr. Larson also requested a Letter of Intent for submittal with the Minnesota Housing Finance application. The H RA had postponed making a recommendation to the City Council until they had reviewed the Market Study. The agenda packet contained a summary of the Market Study. The complete study was not complete in time to be included in the agenda packet. Mr. Larson stated that the Market Study was at the printers and would be available soon. Dan Frie asked if the renters paid a certain percent of income. Mr. Larson stated that the rent is pre-set plus utilities. Ollie Koropchak asked if the Planning Commission needed to review the project. JefT O'Neill stated that there were no set-backs required, however, the Planning Commission would have to do a site plan approval. Ms. Koropchak asked Mr. Larson how many units would be built in Phase 1 and the anticipated completion date. Mr. Larson stated that 32 units would be built in Phase I and 28 Units in Phase n. The plan is for all 32 units to be built and ready to rent in 1999. Darrin Lahr asked if the maximum rent was $875 under HUD. Mr. Larson stated he requested a semi-annual "rebate" of 50% of the project taxes paid for a period of five years to obtain rent reductions. Darrin Lahr asked Mr. Larson if, after five years, the rents would increase. Mr. Larson stated that the rents would increase. HUD usually allows a 2-3% increase per year. The tenants will sign a year to year lease and a letter will be sent to the tenants letting them 2 . . . know of the coming rental increase. There will be full disclosure at the time of renting. Bob Murray wanted to know if all the units were three bedrooms and how many rental units were currently in Monticello. Mr. Larson stated that all the units are three bedrooms. He was not sure of the number of rental units, but the expanded Market Study would show that information. Darrin Lahr wanted to know how the abatement would be handled. Mr. Larson stated that the company will pay their taxes twice a year to the County and then the City will rebate a portion back to the company. Bob Murray asked if the County also participated. Ms. Koropchak stated that she would check with Wright County to make sure that they will participate. A MOTION WAS MADE BY STEVE ANDREWS AND SECONDED BY DAN FRIE TO APPROVE TIF ASSISTANCE FOR REDEVELOPMENT OF THE KLUCAS PROPERTY WITH THE SAID RECOMMENDATION TO THE CITY COUNCIL. Jeff O'Neill stated that he felt the developer should have considerable discussion with the new mayor to obtain his input regarding any City assistance. Motion carried unanimously. 7. Consideration to approve financing the services of Michael Schroeder as facilitator and coordinator of the January 20 council/commission workshop meeting relating to the North Anchor. Darrin Lahr stated that Mr. Schroeder's letter indicated the workshop would last no longer than two hours and he felt this was not realistic. Executive Director Ollie Koropchak stated that Mr. Schroeder would serve as facilitator with each commission sharing in the discussion on the River Front. it is her wish that everyone has a chance to voice their opinion. It may be necessary to establish some form of public participation. Dan Frie asked if there had been any objections to the Revitalization Plan adopted by the Council. Ms. Koropchak stated that as far as she knew, there had been no objections voiced. It was felt the River Front development should be thought out carefully. Darrin Lahr asked if we were hoping to have a resolution to the matter in this workshop. Ms. Koropchak stated it may be decided to obtain public input. Steve Andrews would like a closed end on this workshop. 3 . Darrin Lahr stated that it concerned him that nothing would be accomplished. Ms. Koropchak wants everyone to be on the same wave length. . Bob Murray stated that in the workshop, information should be gathered and summarized. He did not feel it was necessary to take it to the pubic as there had been public input on the Revitalization Plan. Ms. Koropchak stated that Mr. Kembal from Duluth will be present at the workshop to share the Plan Duluth used in their River Front Project. Steve Andrews felt that there should be a goal of the workshop; that we should know exactly what we are being asked to do. It was Ms. Koropchak feeling that it was a good time for commissioners to share ideas which will hopefully spur discussion. Darrin Lahr asked if two hours later we will know anything more than before the workshop. Dan Frie suggested that Brad Johnson show his proposal at the workshop and see ifthis fits with what the commissioners want. . Darrin Lahr asked ifMr. Johnson's proposal fit with the Comprehensive Plan. Dan Frie commented that Brad Johnson's was the first plan presented. Darrin Lahr stated that he wants to know where we are going with the North Anchor. Bob Murray felt that the things Brad Johnson presented are marketable. Darrin Lahr stated that Mr. Johnson will only bring in things that will make him money. Also, Darrin felt that Mr. Schroeder must be clear on the need for resolution on this issue. Ms. Koropchak stated that it was a public meeting and everyone was invited. A MOTION WAS MADE BY STEVE ANDREWS AND SECONDED BY BOB MURRA Y TO APPROVE FINANCING THE $500 PLUS EXPENSES NOT TO EXCEED $150 FOR THE SERVICE OF MICHAEL SCHROEDER, HOISINGTON KOEGLER, ON JANUARY 20, 1999. Motion carried unanimously. Ms. Koropchak asked that Chair Steve Andrews and Mayor Belsaas run the joint meeting and see that it reaches a satisfactory conclusion. . 4 . . . 8. Consideration to authorize pavment of monthly lIRA bills. A MOTION WAS MADE BY DARRlN LAHR AND SECONDED BY BOB MURRAY TO AUTHORIZE PAYMENT OF THE MONTHL YHRA BILLS. Motion carried unanimously. 9. Consideration of executive director's report. a) West Broadway Amoco parcel- Ollie Koropchak stated that Jeff O'Neill reported that the party inquiring about putting in a auto repair and towing business at this site has decided not to proceed. b) Storage Agreement - Have not received a copy of the agreement from Kennedy & Graven. c) 3 Walnut Street - Received the rent for January. e) Marketing - Darrin Lahr asked how much money was budgctcd for Marketing in 1999. Ms. Koropchak stated that $35,000 had been budgeted for 1999. It was also stated the golf outing would be an annual event. 10. Consideration of reports: a) Community Center Small Group - Bob Murray stated that there is now a construction schedule with completion scheduled for Novembcr 1999. Jeff O'Neill stated that Mayor Belsaas had some positive ideas on managing the Community Center. He also stated that $4 million has already gone into the Community Center and large quantities of materials are on order. MCP - Steve Andrews - annual MCP meeting on January 13, 1999. b) 11. Other Business None 12. Adjournment. A MOTION WAS MADE BY DAN FRIE AND SECONDED BY BOB MURRAY TO ADJOURN THE HRA MEETING AT 8:00 P.M. Motion carried unanimously. Chair, Steve Andrews Nancy Whalen, Recording Secretary 5 . . . MINUTES .JOINT HRA, COUNCIL, PARKS, PLANNING, EDA AND DAT WORKSHOP Wednesday, January 20,1999 - 6:00 p.m. Present: COUNCIL: Mayor Roger Belsaas, I3ruce Thielen, Clint Herbst and Roger Carlson Mike Cyr, Rita Ulrich, Susie Wojchouski and Gail Cole Chair Ron Hoglund, Bill Demeules and Ken Maus Chair Steve Andrews, Bob Murray, Brad Barger and Darrin Lahr Chair Larry Nolan, Gregg Engle, Jennifer Fearing, Earl Smith and Fran Fair Rod Dragsten, Dick Frie, Richard Carlson and Roy Popilek DAT: EDA: HRA: PARKS: PLANNING: Staff: Jeff O'Neill, Deputy City Administrator Ollie Koropchak, Economic Development Director Wanda Kraemer, Administrative Assistant Dawn Grossinger, City Staff Guest: Barb Esse, Mep Marianne Khauv, Chamber of Commerce Michael Schroeder, Hoisington Koegler Group, Inc. Jerry Kimball, Past Planning Director, City of Duluth Brad Johnson, Lotus Realty Pat Sawatzke, Walnut Street Property Owner Paul & Evelyn Wurm, Park Place Apartments Michelle Ewing, Riverstreet Station Onn Khauv, Best Western Scott Douglas, Golden Valley Furniture Diane Lange, Riverfront Owner Woodrow Lange, Riverfront Owner Brent Morningstar, Wright-Hennepin Electric & Security 1. Call to Order. HRA Chair Steve Andrews called the Joint Meeting to order at 6:00 p.m. He introduced Michael Schroeder, Hoisington Koegler Group, Inc. 2. Introductions Mr. Schroeder asked everyone to introduce themselves and which group they represented. Introductions were made. -1- . . . 3. Minutes Joint HRA, Council, Parks, Planning, EDA and DA T Workshop - 1/20/99 Workshop Purpose Mr. Schroeder presented a brief overview of the Revitalization Plan for the downtown and riverfront area and reviewed the purpose of the workshop. 1. Review the Monticello's Revitalization Plan for the downtown and riverfront area. 2. Input from others on how they view Monticello. 3. Provide City Board and Commission members with an opportunity to provide input relating to the development ofthe downtown and riverfront area. 4. Is there a need for broader community input relating to development of the riverfront and downtown's north anchor. 5. Consider a plan on how to proceed. Mr. Schroeder stated that the Comprehensive Plan provides only guidelines and is not meant to lock the City into a set plan. He stated that Mr. Jerry Kimball, Past Planning Director, of Duluth will share perspectives on the value of riverfront improvements. Mr. Brad Johnson, Lotus Realty, will share perspectives on what a developer looks for in a redevelopment project. 4. Overview of the Downtown and Riverfront Revitalization Plan (Michael Schroeder). Mr. Schroeder reviewed the City's Riverfront Revitalization Plan which was adopted in 1997 as part of the City's Comprehensive Plan. This Plan gives directions for the development of the riverfront. It was felt that a mix of uses in the downtown/riverfront area is important. A key to a successful downtown is a good mix of compatible uses, and the City will need to find a way for a new mix to work together. The value of the riverfront was also emphasized and the need for development along the river to be done with great care to preserve this precious resource. Mr. Schroeder stated that there are three components critical to the Plan: 1. Revitalization of the mall, 2. Civic/governmental core area, 3. Downtown/Riverfront Bridge Park. It is important to remember the Revitalization Plan is not specific it is meant only to give directions. -2- . Minutes Joint HRA, Council, Parks, Planning, EDA and DAT Workshop - 1/20/99 Mr. Schroeder introduced Jerry Kimball of Duluth. Mr. Kimball reiterated the value of the riverfront stating he has traveled around the Midwest telling people of the advantages of the waterfront. As Planning Director of Duluth, he traveled around the country to see what other cities were doing along their lakes and river fronts. Mr. Kimball reminded the board (md commission members to always remember that what they arc doing is for a noble cause. 'f"here is no easier way to increase economic or quality oflife than to capture the magic of urban lakes or rivers. Waterfront redevelopment has done so much good for so many cities. Mr. Kimball felt that cities arc changing; they are losing their identity which makes for sameness. This hurts economy and it hurts city pride. He felt that the commissioners needed to ask whether or not they are committed to this project and ask the question "Why do we want to do this?" When people think of revitalization, they have one of two impressions: 1) Revitalization means more individual and private business or 2) Community pride and spirit and a sense of place. He asked the question, "What comes to mind when you refer to City Revitalization? Business development or community spirit?" Mr. Kimball asked for a show of hands and the majority felt community spirit. Revitalization means renewal of life. The ingredients for revitalization are: 1) Resist steam roller effect. 2) Identify unique strengths and nurture them. Cities should emphasis their uniqueness. . Duluth began the process of revitalization in the early 1980's with a vision. As a result of this vision, Duluth has experienced a record number of conventions, some national, more industry, and growth in local businesses. But the most important benefit of all is the pride the City now has in itself. Mr. Kimball had two suggestions for the boards and commissions. 1. You need a Comprehensive Plan; but also you need to do other planning to get more specific ideas. However, it is important not to let the pressure of time get to you. Implementing a plan takes time. 2. It takes a lot of partnerships between various entities. 4c. A Proposal for Monticello's North Anchor (Brad Johnson). Mr. Johnson stated that, as a developer, he saw the downtown revitalization area as taking a non-earning asset and making it an earning asset. Many times the asset in question is not privately owned and therefore it is essential to have the community's involvement. He stated that development will usually take place along the freeway or a major highway. He felt that the park was a key element to making the downtown revitalization work. A . -3- . . . Minutes Joint lIRA, Council, Parks, Planning, EDA and DA T Workshop - 1/20/99 park brings people and people mean security. The baby boomers wanted density and they want activities that are close by. It is important to have people living by the river or lake. A restaurant would be key to a successful retail business. Also, a hotel would help bring in people. There must be a vision to implement a revitalization plan. However, it must be remembered that it is only a vision. 5. Commission Input. 5a. Development of Monticello's North Anchor and Riverfront. Michael Schroeder opened the meeting for input regarding the goals and visions for this area. Responses. Steve Andrews felt there was an attitude that the City was waiting for the developers to bring concept plans to them to approve or disapprove. We need to let the developers know what the City envisions for that area. Our relationship with the developers needs to be enhanced. Bruce Thielen stated that there was a perception that the City was selling park property. This is not the case. Our goal is to enhance the park perhaps even enlarge it. Hopefully, in the end, it will be a win for both sides. It was felt that the desires of the residents that live down along the river should be considered. City officials need to make a decision while keeping the residents informed. Some felt that there has been a lack of communication between the boards and commISSIOns. The question was asked whether or not we should be focusing on just this narrow area or working on a vision for a greater area. Some felt that Brad Johnson proposal was just a starting point. The Revitalization Plan is broad and the North Anchor is just the engine driving it. Mr. Schroeder asked the question, "What needs to go on in the park? Something to enhance the City? What is going to enhance the City?" The boards and commissions need to ask these questions. It must be determined what we want to see at West Bridge Park and what will surround it. Gregg Engle stated that he did not want to lose the activity that now takes place at the park like hockey and -4- . Minutes Joint HRA, Council, Parks, Planning, EDA and OAT Workshop - 1/20/99 skating because it attracts a lot of people. Also festivals, music, etc., should be added to draw people. Roy Popilek stated the importance of protecting the water source and perhaps a buffer should be added between the river and the development Ollie Koropchak felt that we must look long-term. Once this area is developed it's gone. We need to look long range and take shorter steps. Private development must be quality development What about the swans? Susie Wojehouski stated that the river has historical significance and perhaps this could be utilized. Perhaps a steamboat on land welcoming people to Monticello. Also the islands could be used for activities such as treasure hunts since the water is only 3-4 feet deep and could easily be crossed. Perhaps a use of the water source could be paddleboating, tubing or canoeing in the summer and feeding stations in the winter for swans, etc. . It was felt that the pathway system should be incorporated and made an integral part of the area. Mr. Schroeder stated that what happens on one side ofthe river affects what happens on the other side. He felt that the river must be embraced and care must be given to whatever is done. The Revitalization Plan was formulated with the idea that Monticello was a great small town not a suburb or a bedroom community. I:-Ie felt that the ideas that were being presented were not that different from the Revitalization Plan. The City has to make a commitment to the plan and determine how willing it is to acquire private property to develop the plan. He acknowledged that in the process it may be forced to make some difficult choices. But, something needs to be done to get started. Ollie Koropchak stated that the HRA has acquired three properties on Block 54, adjacent to the park. Healthy residential neighborhoods make for a better downtown. . -5- . . . Sb. Minutes Joint HRA, Council, Parks, Planning, EDA and DA T Workshop - 1/20/99 The Need for Community Input. Mr. Schroeder asked for input regarding how to get to where we have a concept plan. Do we want just board members and commissioners' input or public input also. HRA - Would prefer commissioners decide what to do before going to the public. Go to the developers to see if feasible before going to the public. PLANNING - Sit down with commissioners and discuss before going to the public. Set- up parameters and then go to developers before the public. PARKS - Useful to work with other commissions. Get something more concrete before going to the public. It is important to get the commissions together as information is not being passed on. CITY COUNCIL - Have a concept before going to the public. The question was asked whether everyone has to be involved or can it be a smaller group. MCP - Have an inventory list of how the park is going to be used. For that we need public input. DA T - Residents should have input. A smaller group is okay but information must be passed on as much as possible to businesses and residents affected. Care must be given not to shut out public input. Mr. Schroeder suggested the first step was to find out where the commissions agree. lie suggested that at the next meeting of the various boards and commissions, they take 20 minutes to list the top S things that they want to achieve with the North Anchor and Bridge Park. Staff would then compile a list and distribute to all members. He encouraged only 1 or 2 from each commission work together and start sharing ideas. Work on finding areas of agreements. 6. Next Steps. Mr. Schroeder stated that thus far the City has only heard from one developer. The community has to decide if they want to open it up to other developers after it is decided how to proceed. It is imperative to start with a vision. Mr. Schroeder statcd that the HRA is responsible for acquiring propcrties. The HRA should be talking with affected homeowners about acquiring their properties. They nced -6- . . . Minutes Joint HRA, Council, Parks, Planning, EDA and DA T Workshop - 1/20/99 to define a strategy and the Council needs to decide if it is willing to condemn properties if necessary. The City must be ready to move on acquisitions. HRA stated that they have bought houses when they have come up for sale or the HRA has been approached. But they felt they needed direction from the Council. Mr. Johnson indicated that the first thing the groups must consider is where the money will come from to do this project. Mr. Schroeder and Mr. Kimball asserted that the issue of money should not be considered until the groups have strong agreement to a direction for the north anchor and riverfront; funding sources may vary depending upon the direction the groups pursue. liRA Chair Steve Andrews stated that a summary of the meeting would be sent to those present and adjourned the meeting at 8:00 p.m. Chair, Steve Andrews Nancy Whalen, Recording Secretary -7- . . . 4A. lIRA Agenda - 2/1 0/99 Consideration to approve the Certificate of Completion for Allied Companies. LLC. A REFERENCE AND BACKGROUND: The certificate of occupancy was issued by the Building Department on January 6, 1999, for the Allied Companies facility indicating completion of the construction. Per the Contract for Private Redevelopment between the lIRA and Allied Companies, LLC, completion of the minimum improvements was scheduled for December 31, 1998. With the issuance of the certificate of occupancy, the HRA is requested to approve the Certificate of Completion. Additionally, the Contract states the redeveloper agrees that it will pay upon demand by the lIRA, Administrative Costs. Administrative costs means out of pocket costs incurred by the lIRA attributable to or incurred in connection with the negotiation and preparation of this agreement and other documents and agreements in connection with the development contemplated hereunder. As of the date of this Agreement, the redeveloper has deposited with the lIRA the amount of $5,000 to be applied toward administrative costs. The amount by which this deposit exceeds the lIRA's actual administrative costs, if any, shall, upon demand by the developer, be returned to the developer, but no earlier than the date on which the developer receives a Certificate of Completion. Verification of the total administrative costs through the city's finance department will be in 30 days to allow final invoices from the consultant and attorney. B. ALTERNATIVE ACTION: 1. A motion of approve the said Certificate of Completion. 2. A motion to deny approval of the said Certificate of Completion. 3. A motion to table any action. C. RECOMMENDATION: Recommendation is alternative No.1. D. SUPPORTING DATA: Copy of the certificate of completion and certificate of occupancy. -1- . . . CERTIFICATE OF COMPLETION The undersigned hereby certifies that Allied Companies. LLC (the "Developer") has fully complied with its obligations under Articles III and IV of that document titled "Contract for Private Development." dated . 1998 between the Housing and Redevelopment Authority in and for the City of Monticello. Minnesota and the Developer. with respect to construction of the Minimum Improvements on the property described in Exhibit A thereto in accordance with the Construction Plans. and that the Developer is released and forever discharged from its obligations to construct of the Minimum Improvements under Articles III and IV. Dated: . 199 . HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO. MINNESOTA By Its By Its STATE OF MINNESOTA ) ) 5S. COUNTY OF WRIGHT ) The foregoing instrument was acknowledged before me this _ day of . 1998. by and . the and of the Housing and Redevelopment Authority in and for the City of Monticello. Minnesota, on behalf of the Authority. Notary Public THIS DOCUMENT DRAFTED BY: Kennedy & Graven. Chartered 470 Pillsbury Center 200 South Sixth Street Minneapolis. Minnesota 55402 (612) 337-9300 q0:\ OJG142690 MN190-72 . . . HRA Agenda - 2/1 0/99 6. Consideration to adopt priorities for redevelopment oIthe North Anchor and to appoint two HRA representatives to the North Anchor Subcommittee. A. REFERENCE AND BACKGROUND: ADOPTION OF PRIORITIES At the conclusion of the joint Council and Commissions Workshop held January 20, 1999, Michael Schroeder of Hoisington-Koegler suggested the City Council and each City Commission in attendance develop and list five priorities to achieve in the redevelopment of the North Anchor/Riverfront for submission to a North Anchor Subcommittee. Secondly, the Council and Commissions were directed to appoint two members to the North Anchor Subcommittee. Thirdly, the process criteria for redevelopment of the North Anchor to be determined after discussion and determination of priorities by the Subcommittee. The last of the commissions, the EDA, is scheduled to meet on February 23. Please use the attached worksheet - Each commissioner is asked to list their five priorities to achieve in the redevelopment ofthe North Anchor/Riverfront prior to the February 10 HRA meeting. Each commissioner's priorities to be discussed at the meeting for consideration to adopt the HRA's five priorities for redevelopment of the North Anchor. APPOINTMENT OF TWO HRA COMMISSIONERS Per the direction of Michael Schroeder, please appoint two HRA commissioners to the North Anchor Subcommittee. In the Council agenda of February 8, the Council is being asked to retain Michael Schroeder for continued assistance with the redevelopment of the North Anchor. Schroeder is preparing a proposal for Council consideration (not-to- exceed four meetings.) B. ALTERNATIVE ACTIONS: 1. A motion to adopt the following five priorities to achieve in redevelopment of the North Anchor. 2. A motion to deny adoption of five priorities to achieve in redevelopment of the North Anchor. 3. A motion to table any action. -2- HRA Agenda - 2/10/99 . APPOINTMENT OF TWO HRA COMMISSIONERS 1. A motion to appoint Commissioner and Commissioner to the North Anchor Subcommittee. 2. A motion to table any action. C. RECOMMENDATION: No staiIrecommendation is given for development of the HRA's priorities or appointment of commissioners to the North Anchor. D. SUPPORTING DATA: Form for use to list five priorities. . . -3- - FIVE PRIORITIES TO ACHIEVE IN REDEVELOPMENT OF THE NORTH ANCHOR Housing and Redevelopment Authority Please use this form as a worksheet to select five priorities you would like to achieve in the development of the North Anchor area. At the meeting each Commissioners choices will be discussed and then one list of five items will be compiled to submit to the North Anchor Sucbommittee. 1. 2. 3. 4. 5. --..... -. \o~\ . . . 7. Consideration to authorize payment of monthlv HRA bills. Recommendation is to approve authorization. -4- HRA Agenda - 2/1 0/99 KENNEDY & GRAVEN . Chartered 200 South Sixth Street, Suite 470 Minneapolis, MN 55402 (612) 337-9300 CLIENT SUMMARY January 12, 1999 City of Monticello Ollie Koropchak City Hall P.O. Box 1147 Monticello, MN 55362-9245 Through December 31, 1998 Mt-T 190-00041: Redevelopment - General '). '"), \.a ,~O MN190-00066: Community Center Financing S ~ 5- . SO. , \~.'-\O '\ f\ C; . dO MN 190-00067: Mall Redevelopment Services Rendered: Disbursements: . Balance Due: $ -+18. 70 $ 566.34 $ 35.90 $ ~2j.20"" $ 55.74 ~ "",980.~ fJ <& ~C . ~ ~ '\/\ . . . KENNEDY & GRAVEN Chartered 200 South Sixth Street, Suite 470 Minneapolis, MN 55402 (612) 337-9300 January 12, 1999 City of Monticello Ollie Koropchak City Hall P.O. Box 1147 Monticello, MN 55362-9245 MN 190-00041: Redevelopment - General Invoice # 27588 Through December 31, 1998 For All Legal Services As Follows: 12/02/98 DJG 12/03/98 SJB 12/22/98 DPD 12/23/98 DPD Draft letter to 0 Koropchak re relocation Phone call with 0 Koropchak re various redevelopment matters. Draft storage agreement Revise storage agreement 1.90 199.50 0.20 26.80 ~3.80 116.31 1.10 33.69~ Total Services: For All Disbursements As Follows: 12/23/98 Photocopies Total Disbursements: Total Services And Disbursements: ~e~.\ ~'-- S~ (\. ..(?~ $ -: J76.30- ft '? I:} \..c . '?>---a $ 2.40 2.40 $ . 378.70- ?~ <&,')0 ,,~?- ~ KENNEDY & GRAVEN Chartered 200 South Sixth Street, Suite 470 Minneapolis, MN 55402 (612) 337-9300 January 12, 1999 City of Monticello Ollie Koropchak City Hall P.O. Box 1147 Monticello, MN 55362-9245 MN190-00066: Community Center Financing Invoice # 27589 Through December 31, 1998 For All Legal Services As Follows: 12/22/98 DJG 12/23/98 DJG 12/24/98 DJG Phone call with state auditor Phone calls with state auditor Draft letter to state auditor Total Services: . For All Disbursements As Follows: 11/15/98 12/29/98 12/29/98 12/29/98 Parking expense (DJG) Photocopies Postage Fax Total Disbursements: Total Services And Disbursements: . OAO 0.80 3.90 42.00 84.00 409.50 535.50 $ $ 24.00 1.20 0.64 5.00 30.84 $ 566.34 f\.f 3 . . . YV' G: ry AY ~~;; C<".)~ KENNEDY & GRAVEN Chartered 200 South Sixth Street, Suite 470 Minneapolis, MN 55402 (612) 337-9300 January 12, 1999 City of Monticello Ollie Koropchak City Hall P.O. Box 1147 Monticello, MN 55362-9245 MN190-00067: Mall Redevelopment Invoice # 27590 Through December 31,1998 For All Legal Services As Follows: 12/03/98 SJB Phone call with 0 Koropchak re Note. Total Services: For All Disbursements As Follows: 12/01/98 12/01/98 12/01/98 Photocopies Fax Federal Express - delivery charge Total Disbursements: Total Services And Disbursements: 0.10 13 .40 13 .40 $ $ 4.00 8.00 10.50 22.50 $ 35.90 '\~~ . ~~ \r-"&S Monticello HRA PO Box 1147 Monticello MN 55362-9245 January 12, 1999 i I L_ . MC100-27 TIF District No. 25 Invoice # 15810 Hours Amount 12/16/98 MTR Certification of District RC Certification of District Total Due This Month: Previous Balance: 12/22/98- Payment - thank you Total Balance Due: 1.00 105.00 1.00 105.00 2.00 $210.00 $367.50 ($367.50) $210.00 . PLEASE KEEP WHITE COPY FOR YOUR FILE AND REMIT PINK COpy WITH PA YMENT TO: . EHLERS & ASSOCIATES INC 3060 Centre Pointe Drive Roseville, MN 55113-1105 651.697.8500 ")~ . . ~- "\ 3-~ '\).' ':> '\ MC100-26 District 1.24 \- 'd-LJ Monticello HRA PO Box 1147 Monticello MN 55362-9245 January 12, 1999 Hours Amount 1.00 105.00 1.00 105.00 -- 2.00 $210.00 $367.50 ($367.50) $210.00 12/30/98 MTR Certification of District RC Certification of District Total Due This Month: Previous Balance: 12/22/98- Payment. thank you Total Balance Due: PLEASE KEEP WHITE COpy FOR YOUR FILE AND REMIT PINK COpy WITH PA YMENT TO: . . EHLERS & ASSOCIATES INC 3060 Centre Pointe Drive Roseville, MN 55113-1105 651.697.8500 ".-\, ~ Q, ~ _ GSl-;-ll^.- 0L Monticello HRA PO Box 1147 Monticello MN 55362-9245 January 12. 1999 . MC100-01 GENERAL Invoice # 15808 Hours Amount 12/23/98 MTR Run for Brad Larson housing 1.00 105.00 Total Due This Month: 1.00 $105.00 Total Balance Due: $105.00 . PLEASE KEEP WHITE COpy FOR YOUR FILE AND REMIT PINK COpy WITH PA YMENT TO: . . EHLERS & ASSOCIATES INC ,\.,1 3060 Centre Pointe Drive Roseville, MN 55113~1105 651.697.8500 KENNEDY 8t GRAVEN Chartered 200 South Sixth Street, Suite 470 Minneap ;is, MN 55402 D ~ ~ (~ a R n L~ (612 337-9300 ~f FEB g ?c~9 CLIENT SUMMARY February 5, 1999 City of Monticello Ollie Koropchak City Hall P.O. Box 1147 Monticello, MN 55362-9245 Through January 31, 1999 MN190-00041: Redevelopment -General $ 139.00 MN190-00078: Community Center-Post Closing Issues $ 1,068.00 Services Rendered: $ 1,207.00 Disbursements: $ 0.00 Balance Due: $ 1,207.00 • ^~ s. _;:•., _a ;: a jai; ~ ,: K..~, Ct:~ ,..`.P, ,:7! Gi Jan: "rl is .. ii .:~j ~ o::: a;it~ ~;dl !"is (i.' S+ynatura of '..imam • ~r G KENNEDY 8F GRAVEN Chartered 200 South Sixth Sveet, Suite 470 Minneapolis, MN 55402 (612) 337-9300 February 5, 1999 City of Monticello Ollie Koropchak City Hall P.O. Box 1147 Monticello, MN 55362-9245 MN 190-00041: Redevelopment -General Invoice # 28327 ~ ~~~0~c~ J FF~, \ 9 ,~yg Di Through January 31, 1999 For All Legal Services As Follows: 01/20/99 SJB Phone call with O Koropchak re various TIF and development matters Total Services: . Total Services And Disbursements: 1.00 139.00 $ 139.00 $ 139.00 • KENNEDY 8t GRAVEN Charcered • 200 South Sixth Street, Suite 470 Minneapolis, MN 55402 (612) 337-9300 February 5, 1999 D ~~~o~ City of Monticello -~-r'~ FEB Ollie Koropchak _ ~~l_~\ 9 1999 City Hall l P.O. Box 1147 Monticello, MN 55362-9245 MN190-00078: Community Center-Post Closing Issues Invoice # 28329 Through January 31, 1999 For All Legal Services As Follows: 01/12/99 BMB Phone call with D. Greensweig. 0.50 72.00 01/14/99 DJG Prepare for and attend community center meeting 5.10 612.00 01/18/99 BMB Phone call with D Greensweig 0.25 36.00 01/19/99 DJG Prepare for and attend city council meeting 2.90 348.00 Total Services: $ 1,068.00 Total Services And Disbursements: $ 1,068.00 • . . . HRA Agenda - 2/ 1 0/99 8. Executive director's reoort. a) 220 Front Storage Agreement - The agreement has been executed by the tenant, Richard Carlson, and payment of $60.00 received for one year. Forth coming is a copy of the insurance policy naming the lIRA as an additional insured. You will note on the BRA invoice from Kennedy & Graven, the invoice amount for drafting the storage agreement was deducted. A Christmas present from Bubul. b) HRA year-end housekeeping - Attached arc copies of letters mailed to developers relating the TI Guarantees and Administrative Costs. The NSP- TIF District matured and the TI Guarantee deficiency is $10,480.09. Additionally, five TIF pay-as-you-go payments were disbursed for a total of $56,126.82, this including the final payment to Martie's Farm Service. c) HRA Commissioner appointment - Mayor Belsaas will be calling a special meeting of the City Council and HRA for discussion of the policies and roles of the City Council and HRA. Please mark your calendar, the date of the meeting is Monday, February 22, 1999,5:30 p.m. My assumption is a commissioner will be appointed thereafter. d) Qualified Housing District - The HRA received the "Certificate of Continued Program Compliance" horn Presbyterian Homes satisfying the 40/60 income- rental level test, the requirement for a qualified district (HACA exempt). -5- ~\K, ~ January 15, 1999 -- MONTICELLO Mr. Pete Abelson Northern States Power Company 414 Nicollet Mall Minneapolis, MN 55401 RE: T AX INCREMENT GUARANTEE NOTICE Dear Mr. Abelson: . Per the Private Redevelopment Contract dated September 6, 1989, between the Housing and Redevelopment Authority (the "Authority") in and for the City of Monticello, Minnesota, and Northern States Power Company (the "Redeveloper"), ARTICLE VI, Section 6.1. Tax Increment Guarantee, the Redeveloper agreed to a Tax Increment Guarantee. "Beginning in calendar year 1991, in the event that the Tax Increment generated by the Tax Increment District in any year until the Maturity Date is less than $6,913, the Authority shall provide notice to the Redeveloper of such fact and the amount of the deficiency in Tax Increment......" Below is a notice of the amount of Tax Increment collected by the Administrator of the City of Monticello from the Auditor of the County of Wright, beginning calendar year 1991 through calendar year 1998 for the property described as: Lot 4, Block 3 OAKWOOD INDUSTRIAL P ARK according to the recorded plat thereof, Wright County, Minnesota. Except the east 215.72 feet thereof subject to easements of record. l22.l 1992 1m. 1994 1995 1m. $7,173.41 $6,673.06 l221 1998 $6,277.95 $4,532.12 $4,314.31 $5,301.06 $4,894.77 $5,657.23 \~\ . Monticello City Hall, 250 E. Broadway, PO Box 1147, Monticello, MN 55362-9245. (612) 295-2711. Fax: (612) 295-4404 Office of Public Works, 909 Golf Course Rd., Monticello, MN 55362 . (612) 295-3170 · Fax: (612) 271-3272 . . . Mr. Abelson January 15, 1999 Page 2 The cumulative amount of the deficiency in Tax Increment through calendar year 1998 is $10,480.09. At the September 6,1995, meeting of the Authority, the commissioners authorized that the Redeveloper be notified of the cumulative amount of the deficiency in Tax Increment with the following explanation: This is a deficiency notice and the amount is not due and payable. In order to allow for adjustments in the amount of Tax Increment generated over the life of the District, the Authority will provide an annual notice of such fact and the cumulative amount of the deficiency in Tax Increment until the Maturity Date of the Tax Increment District. Upon the Maturity Date and Thirty (30) days after receipt of the notice, the Redeveloper shall be liable for and shall pay to the Authority the cumulative amount of the deficiency. The Maturity Date ofthe Tax Increment District is January 23, 1999, ten years after the approval of the plan or eight years after the date of receipt of the first tax increment. Notice is hereby given that the cumulative amount of the deficiency in Tax Increment through the Maturity Date is $10,480.09. If you should have any questions, please call me at 295-2711. Sincerely, HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO, MINNESOTA o.~ '\<<f) 0 ~~ Ollie Koropchak Executive Director cc: Damn Lahr, NSP St. Cloud Rick Wolfsteller, Administrator File 1> '0'\ A O,K. -. # I . I , ~ .;~ t> ~i' 'Ii', '~I .~ ~I m MONTICELLO January 15, 1999 William R and Barbara R. Tapper Tapper's, Inc. 212 Chelsea Road Monticello, MN 55432 RE: T AX INCREMENT GUARANTEE NOTICE . Dear Bill and Barb: Per the Private Redevelopment Contract dated July 13, 1990, between the Housing and Redevelopment Authority (the "Authority") in and for the City of Monticello, Minnesota, and William R and Barbara R Tapper (the "Redeveloper"), ARTICLE VI, Tax Increment, Section 6.1. Tax Increment Guarantee, the Redeveloper agreed to a Tax Increment Guarantee. "Beginning in calendar year 1992, in the event that the Tax Increment generated by the Tax Increment District in any year until the Maturity Date is or will be less than $26,000, the Authority shall provide notice to the Redeveloper of such fact and the amount ofthe deficiency in Tax Increment......" Per the Amended and Restated Amendment to Contract for P:ivate Redevelopment dated November 1, 1995, between the Housing and Redevelopment Authority (the "Authority") in and for the City of Monticello, Minnesota, and William R. And Barbara R. Tapper (the "Redeveloper"), 3. Tax Increment Guarantee, beginning in calender year 1998, in the event that the Tax Increment generated by the Tax Increment District in any year until the Maturity Date is less than $43,000, the Authority shall provide written notice to the Redeveloper of such fact and amount of the deficiency in Tax Increment. Below is a notice of the amount of Tax Increment collected by the Administrator of the City of Monticello from the Auditor of the County of Wright, beginning calendar year 1992 through calendar year 1998 for the property described as: Lot 4, Block 2, OAKWOOD INDUSTRIAL P ARK according to the recorded plat thereof, Wright County, Minnesota. \"~ . Monticello City Hall, 250 E. Broadway. PO Box 1147. Monticello, MN 55362-9245 . (612) 295-2711. Fax; (612) 295-4404 Office of Public Works, 909 Golf Course Rd.. Monticello, MN 55362 . (612) 295-3170 · Fax; (612) 271-3272 . . William R. and Barbara R. Tapper January 15, 1999 Page 2 1m l223. 1994 l222 J.22.Q $25,628.14 $25,322.52 $24,196.48 $24,288.18 $24,364.08 .l221 1m. $34,453.71 l222. $24,008.52 The cumulative amount of the deficiency in Tax Increment through calendar year 1998 is $16,738.37. At the September 6, 1995, meeting ofthe Authority, the commissioners authorized that the Redeveloper be notified of the cumulative amount of the deficiency in Tax Increment with the following explanation: This is a deficiency notice and the amount is I!Q1 due and payable. In order to allow for adjustments in the amount of Tax Increment generated over the life of the District, the Authority will provide an annual notice of such fact and the cumulative amount of the deficiency in Tax Increment until the Maturity Date of the Tax Increment District. Upon the Maturity Date and Thirty (30) days after receipt of the notice, the Redeveloper shall be liable for and shall pay to the Authority the cumulative amount of the deficiency. If you should have any questions, please call me at 295-2711. Sincerely, HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO, MINNESOTA C)~ ~~~i)~ Ollie Koropchak Executive Director cc: Rick W olfsteller, Administrator File . '\ ,<!'J.f. 0.;<. ~ t, ". ;~.;,: ." 4 '" .' , . '~t. , , , i ~ " J " J January 15, 1999 -- MONTICELLO Jerald J. and Mary E. Schoen Aroplax Corporation 200 Chelsea Road Monticello, MN 55362 RE: T AX INCREMENT GUARANTEE NOTICE . Dear Jerry and Mary: Per the Private Redevelopment Contract dated August, 3, 1992, between the Housing and Redevelopment Authority (the "Authority") in and for the City of Monticello, Minnesota, and Jerald J. and Mary E. Schoen (the "Redeveloper"), ARTICLE VI, Tax Increment, Section 6.1. Tax Increment Guarantee, the Redeveloper agreed to a Tax Increment Guarantee. "Beginning in calendar year 1994, in the event that the Tax Increment generated by the Tax Increment District in any year until the Maturity Date is or will be less than $21,500, the Authority shall provide notice to the Redeveloper of such fact and the amount of the deficiency in Tax Increment......" Below is a notice of the amount of Tax Increment collected by the Administrator of the City of Monticello from the Auditor of the County of Wright, beginning calendar year 1994 through calendar year 1998 for the property described as: Lot 3, Block 2, OAKWOOD INDUSTRIAL P ARK, except for tract described in Book 290 of Deeds, page 894, City of Monticello, County of Wright. 1994 1m l22.6. l221 $19,523.24 $20,908.21 $20,957.01 $20,764.38 1m. 1222- 2000 t'o~ . $17,836.90 Monticello City Hall, 250 E. Broadway, PO Box 1147, Monticello, MN 55362-9245 . (612) 295.2711 · Fax: (612) 295-4404 Office of Public Works, 909 Golf Course Rd., Monticello, MN 55362. (612) 295-3170. Fax: (612) 271-3272 '-~;,: ... ~ .'. . Jerald J. and Mary E. Schoen January 15, 1999 Page 2 The cumulative amount of the deficiency in Tax Increment through calendar year 1998 is $7,510.26. At the September 6, 1995, meeting of the Authority, the commissioners authorized that the Redeveloper be notified of the cumulative amount of the deficiency in Tax Increment with the following explanation: This is a deficiency notice and the amount is 1lQ1 due and payable. In order to allow for adjustments in the amount of Tax Increment generated over the life of the District, the Authority will provide an annual notice of such fact and the cumulative amount of the deficiency in Tax Increment until the Maturity Date ofthe Tax Increment District. Upon the Maturity Date and Thirty (30) days after receipt of the notice, the Redeveloper shall be liable for and shall pay to the Authority the cumulative amount of the deficiency. If you should have any questions, please call me at 295-2711. Sincerely, HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO, MINNESOTA . a~~~~ Ollie Koropchak Executive Director cc: Rick Wolfsteller, Administrator File . ~?J~ (J,I</ January 13, 1999 -- MONTICELLO Mr. Barry Fluth BBF Properties 19577 180th Avenue Big Lake, MN 55309 Re: Payment of Administrative Costs Dear Barry: . On December 9, 1998, the HRA commissioners approved the Certificate of Completion for the minimum improvements located at Lot 1, Block and Outlot A, Monticello Mall. Per Section 3.5. Pl\.vment of Administrative Costs. of the Contract for Private Redevelopment between the HRA and BBF Properties, Inc., the HRA acknowledged that the redeveloper deposited with the HRA $5,000 for payment of administrative costs. The contract further reads: If at any time the HRA determines that the administrative costs will exceed $5,000, the redeveloper shall pay any additional administrative costs within 10 days after receipt of written invoice from the HRA. The HRA incurred legal fees in the amount of $7,459.19 of which $1,327.35 were related to the K-Mart Condemnation. The [mancial consultant fees amounted to $2,257.5 O. Thus, the total of administrative costs incurred by the HRA was $9,716.69, less the deposit of $5,000, for a balance due of $4,716.69. Attached as evidence are copies of invoices. Should you have any questions, please do not hesitate to call me at 271-3208. Thank you for your attention to this matter. Sincerely, HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO ~~ \<cJ\~ ~~ Ollie Koropchak Executive Director c: TIF File ~'o#~ . Enclosure Monticello City Hall, 250 E. Broadway, PO Box 1147, Monticello, MN 55362-9245' (612) 295-2711' Fax: (612) 295-4404 Office of Public Works, 909 Golf Course Rd., Monticello, MN 55362 . (612) 295-3170 . Fax: (612) 271-3272