Loading...
HRA Minutes 02-01-2006MINUTES MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY Wednesday, February 1, 2006 - 6:00 p.m. Bridge Room - Community Center Commissioners Present: Chair Darrin Lahr, Vice Chair Dan Frie, Brad Barger, and Bill Fair. Commissioners Absent: Steve Andrews. Council Liaison Present: Wayne Mayer. Staff Present: Rick Wolfsteller and 011ie Koropchak. Call to Order. Chair Lahr called the HRA meeting to order at 6:05 p.m. declaring a quorum. 2. Consideration to approve the December 6, 2005 HRA minutes. Lahr clarified his statement on page 4, paragraph 3 to mean that a developer rarely pays on an hourly fee basis for establishment of a TIF District. Koropchak noted a correction on page 7: the motion to read - in the amount of $625 toward expenses for the fiber optic consultant. BILL FAIR MADE A MOTION TO APPROVE THE DECEMBER 6, 2005 HRA MINUTES WITH THE CORRECTION SO NOTED ABOVE. BRAD BARGER SECONDED THE MOTION AND WITH NO FURTHER CORRECTIONS OR ADDITIONS, THE MINUTES WERE APPROVED AS CORRECTED. MOTION CARRIED. 3. Consideration of adding or removing items from the agenda. Koropchak requested the addition of one item under 8A: Request from Master's Fifth Avenue for grant payment associated with the removal of the Koppy garage. 4. Consent Agenda: A. Consideration to adopt an amended and restated resolution authorizing Interfund Loan for advance of certain costs in connection with TIF District No. 1-36. B. Consideration to approve a Certificate of Completion for Rocky Mtn Group LLC. BRAD BARGER MADE A MOTION TO APPROVE THE CONSENT AGENDA: A. TO ADOPT AN AMENDED AND RESTATED RESOLUTION AUTHORIZING INTERFUND LOAN FOR ADVANCE OF CERTAIN COSTS IN CONNECTION WITH TIF DISTRICT NO. 1-36. B. TO APPROVE A CERTIFICATE OF COMPLETION FOR ROCKY MTN GROUP LLC. BILL FAIR SECONDED THE MOTION AND WITH NO FURTHER DISCUSSION, THE MOTION CARRIED. HRA Minutes - 02/01-06 With the up -front assistance of land sale, Koropchak noted the need to identify or collect a letter of credit or bond upon issuance of the certificate of occupancy for non -completed work such as landscape. This needs to be addressed with the building department. Consideration to adopt a resolution approving the modification to the TIF Plan for TIF District No 1-6, Redevelopment District (Raindance.) Koropchak noted the purpose of the modification was two -fold: First, to address the recent change in Minnesota Statutes as it relates to excess tax increment and secondly, to affirm the intent of the HRA which is to finance additional public costs within the Central Monticello Redevelopment Project No. 1 boundaries. The modification will not enlarge the boundary of the TIF District but will increase the district's budget from $465,150 to $1,943,500. This modification does not obligate the HRA to incur debt, it reserves the right of the HRA to incur bonded indebtedness. HRA action to incur additional debt would need to occur prior to the district's maturity date of July 2013. As of December 2004 TIF Reports, the district fund balance was $172,183 and the outstanding bond debt was $70,000. District 1-6 was certified in 1985 and assisted with soil correction, site improvements, land acquisition, and public improvement costs associated with the development of the property for construction of the Maus Foods building. The Planning Commission is scheduled to approve their resolution on February 7 and the Council to hold a public hearing and approve their resolution on February 13. The county and school district did receive a copy of the TIF Plan on January 11, 2006. DAN FRIE MADE A MOTION TO ADOPT A RESOLUTION APPROVING THE MODIFICATION OF THE TIF PLAN FOR TIF DISTRICT NO. 1-6, A REDEVELOPMENT DISTRICT. BRAD BARGER SECONDED THE MOTION AND WITH NO FURTHER DISCUSSION, THE MOTION CARRIED. 6. Consideration to review for discussion the HRA -TIF Management Report as prepared by Ehlers & Associates. The TIF Management Report as prepared by Ehlers & Associates gives a summary of each active TIF district including projected revenues and expenditures, projected amount of uncommitted revenues available through life of district, and recommendations. Koropchak noted page 3 was perhaps the most interesting to the commissioners. It is a summary table of currently projected uncommitted revenues for each district categorized by type of district. The pre -1990 redevelopment districts allow the HRA the most flexibility as they are not subject to the recent limitations placed on newer districts therefore the dollar amounts are larger. The analysis is dollars available in today's dollars with limitations applied. Recommendations were outlined as follows: Reconcile the City financial statements to the TIF reports, reconcile modification dates as reported on the TIF reporting forms (this has been completed) and approve formal modifications for TIF District Nos. 1-2 and 1-20 prior to July 30 and 1-26 and 1-30 prior to decertification. Technical modifications are recommended for 1-5, 1-31, 1-19, 1-23 and perhaps 1-29. Koropchak added the excess tax increment calculations do not show up on these pages. No action is necessary by the HRA as this is a management report with recommendations and gives the commissioners a summary of the uncommitted fund balances for use as a tool in establishing goals for future redevelopment and economic development projects within the Project 0) HRA Minutes - 02/01-06 area. It is expected the excess tax increment projections will be available next month. 7. Consideration to assess the Transformation Home Loan Program and review for discussion the Proposed 2006 HRA Work Plan. TRANSFORMATION HOME LOAN PROGRAM Koropchak informed the commissioners that the Transformation Home Loan Program had been in existence for one year. Based on the direction for an annual review of the program, the commissioners received a list of names of individuals who had inquired over the year. The HRA approved one loan which as of today has not been disbursed with no other takers. A total of 17 inquiries were received. Koropchak felt individuals did not take advantage of the program because the total improvement costs of $50,000 or greater was too high. Although it does not take long to incur $50,000 of costs, perhaps this exceeds most individual's budget. About 200 single-family, owner -occupied property owners with 2004 market values of $150,000 or less were mailed a copy of the brochure last February. Also, a breakfast for lenders and real estate agents was held to market the program with about a dozen people in attendance. The commissioners discussed the option to open the program up to rental property or for someone to purchase, fix -up and sell. The commissioners agreed the program was worthy of modifying the criteria and to extend another year. DAN FRIE MADE A MOTION TO LOWER THE TOTAL COST OF THE REMODEL FROM $50,000 TO $30,000, INCREASE THE LOAN AMOUNT FROM 20% TO 25% OF THE REMODELING PROJECT, REDUCE THE YEARS TO REMAIN IN THE HOME FROM SEVEN YEARS TO FIVE YEARS, AND INCREASE THE MARKET VALUE TO $175,000 OR LESS FROM $150,000 OR LESS. AFTER MAKING THE APPROPRIATE CHANGES TO THE BROCHURE, MAIL THE BROCHURE TO SINGLE FAMILY, OWNER -OCCUPIED HOMES WITH A MARKET VALUE OF $175,000 OR LESS. BRAD BARGER SECONDED THE MOTION AND WITH NO FURTHER DISCUSSION, THE MOTION CARRIED. PROPOSED 2006 HRA WORK PLAN The proposed 2006 HRA Work Plan was prepared by the Chair and Executive Director and supports the HRA goals approved in 2005. The work plan, to be used as a tool for direction in 2006, was viewed by the commissioners as understood and applicable. The commissioners asked about the status of the request for proposal (RFP) for the Comprehensive Plan Update and if the RFP includes an update of the Downtown and Riverfront Revitalization Plan. Chair Lahr stated there is a need for the RFP to address the decaying, old downtown. Council member Mayer agreed with Lahr and stated the downtown area should be a part of the Comp Plan update. Some members saw the need to define the meaning of "core downtown" as the core appears to be moving. Because of the perception of available parking in the downtown area, Bill Fair recommended two items be placed on the HRA agenda within the year: Research the amount of adequate parking necessary to support commercial and housing, and identify feasible parking - structure options and convenient parking areas in the downtown area. The summary table of the recently projected uncommitted revenues can be a tool to accomplishing the HRA work plan and goals. No formal action was taken by the commissioners. 3 HRA Minutes - 02/01-06 j 8. Consideration to authorize payment of HRA bills DAN FRIE MAD A MOTION TO AUTHORIZE PAYMENT OF THE ATTACHED HRA BILLS. BILL FAIR SECONDED THE MOTION AND WITH NO FURTHER DISCUSSION, THE MOTION CARRIED. Due to the additional costs associated to clear the title for closing of the property between the City and Rocky Mtn Group, Koropchak asked the commissioners for direction. Upon the City purchasing the 35 -acres from Chadwick, the City purchased title insurance. For whatever reason, the insurance company nor the city's attorney did not clear the nineteen exceptions listed prior to closing with Chadwick. Hence, the HRA attorney firm of Kennedy & Graven resolved the title issues and the HRA was billed and paid the approximate $3,107. However, Koropchak did not feel this was the responsibility of the developer and is suggesting the city reimburse the HRA. The commissioners agreed and directed the City Administrator to talk to Campbell - Knutson about compensation reimbursement to the city. The administrative cost over -runs for Rocky Mtn Group total $7,580.76. This amount is billed along with the issuance of the certificate of completion. Dan Frie suggested in the future, the HRA ask the purchaser to accept as an addendum the title insurance policy provided by the city. 8A. Consideration to approve a request from Master's Fifth Avenue for grant payment associated with the removal of the Koppy garage. Per the Contract, the HRA agreed to pay a $20,000 grant to the developer for costs associated with parking improvement costs on the Koppy site located within TIF District No. 1-22. The grant to be paid from tax increment from District 1-22. The developer must provide evidence satisfactory to the authority: proof of payment for acquisition and removal of garage, completion of the parking improvements, and submission of lien waiver from any contractors employed by the developer. The commissioners received a copy of the evidence provided by the developer and a letter from the developer requesting payment of the actual costs incurred ($22,070.25.) The building department provided photos of the completed improvements. Koropchak reported in the HRA minutes to approve the $20,000 grant, the developer noted the costs for removal or relocation of the electrical poles and transformer were not included in the grant request. Koropchak also noted within the Parking Lot Improvement and Maintenance Agreement between parties associated with Landmark Square I, Koppy agreed if the garage was removed in the future it could not be replaced. The commissioners agreed a contract was a contract and also noted they looked forward to future redevelopment projects with Fluth. BILL FAIR MADE A MOTION TO APPROVE AND AUTHORIZE PAYMENT OF THE $20,000 GRANT TO MASTER'S FIFTH AVENUE FOR PARKING IMPROVEMENT COSTS ASSOCIATED WITH THE REMOVAL OF THE KOPPY GARAGE. BRAD BARGER SECONDED THE MOTION AND WITH NO FURTHER DISCUSSION, THE MOTION CARRIED 3-1. DAN FRIE ABSTAINED AS HE WAS NOT PRESENT AT THE MEETING APPROVING THE $20,000 GRANT. Wayne Elam, Nelson Builders, informed the commissioners the Landmark Square II project was over -budget causing the architect to re -design the project. Koropchak reported Fluth expects the project to move forward this spring. 11 HRA Minutes - 02/01-06 9. Consideration of HRA Executive Report. The report was accepted as written. Lahr gave a brief update on the causes of the recent electrical outages or surges in the industrial park. He will be attending the IDC meeting on the 7`h of February. 10. Committee Reports: The Marketing Committee is scheduled to meet on February 6. Questions on the Fiber Optics RFP are being taken with the deadline for submission of the RFP in mid March. 11. Other Business: Next HRA meeting - Wednesday, March 1, 2006. 12. Adiournment. DAN FRIE MADE A MOTION TO ADJOURN THE HRA MEETING. BRAD BARGER SECONDED THE MOTION AND WITH NO FURTHER BUSINESS, THE MEETING ADJOURNED AT 8:15 P.M. c:)� �<CA 011ie Koropchak, Recorder Chair