HRA Minutes 01-23-1984MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Special Joint HRA/City Council Meeting
Monday, January 23, 1984 - 6:30 P.M.
Members Present: Dr. Philip White, Vic Vokaty, Jack Reeve, Bud
Schrupp, Don Cochran, Gary Wieber, Arve Grimsmo,
Jack Maxwell, Dan Blonigen, Fran Fair, and Ken
Maus.
Staff Present: Tam Eidem, Allen Pelvit.
Mayor Grimsmo made opening remarks with regard to thanking members
for their volunteer efforts. He especially thanked Dr. White for
his work with the Council and HRA. He then opened the floor to
discussion.
T. Eiden explained the HRA's finances. At present they have an
approximate balance of $6,000.00. He explained that in the past
the HRA played a proactive role. When a proposal was presented,
they took action and held meetings to accomplish this action. Some
months such as November there were no projects to be considered and
no other business to take care of, so the meeting was cancelled.
r December's meeting was used to discuss other areas the Authority could
become more proactive in. The Authority wanted the Council's input.
They wanted to know what concerns the Council had and what direction
the Council wished the Authority to pursue. Eidem stated that the
HRA's Budget is minimal ($6,000.00) and will be dwindling because of
existing obligations. He went on to explain the possibility of levying
up to 1 mill (1983 - $58,000) to enable the Authority to operate from
day to day.
Dr. White stated that he has been an advocate of no additional taxation
and still is. However, in this instance he feels the very existence
of the HRA may need these funds to operate from day to day while getting
involved in other areas. Dr. White felt there should be a close bond
between the Council and HRA. He suggested the HRA having its own budget
or the amount being incorporated into the City's Budget. He also
suggested a Council member becoming a member of the HRA to give guidance.
Open for discussion, the following views were presented:
Eidem wanted to clarify that the Authority can levy up to 1 mill and it
would be built into the City Budget. He stated that the HRA can bond
without the Council's approval (tax increment, industrial revenue bonds,
Housing, etc.).
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D. Blonigen asked if at some point the Authority would be self
sustaining. T. Eidem explained that this would be partly true in
1985 when the IRI increments aro paid. However, Eidem cautioned
members that to remain self supporting there would have to be continued
projects. After eight years the taxes revert back to the City, school
district, hospital and County. He also commented tnat these monies
were used for the larger project costs and not the day to day operating
e"lense=. Eidem said that nothing would happen ...h this until 1985
because the 1984 Budget had already been certified.
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Council and HRA Minutes - 1/23/84 (Joint mtg.)
CDr.
White wanted the Council's approval and guidance. He also
doesn't want the Authority to get out of hand by getting too big
too fast.
Dan Blonigen felt the HRA should remain as is. He is all in favor
of the HRA doing business with industry but doesn't want the
Authority to become more proactive.
Bud Schrupp urged all present that the Authority doesn't take
its responsibilities lightly. Bud stated that the HRA uses three
guidelines to determine if a project is worthy or not:
1. Does the project provide new permanent jobs and
increase the tax base.
2. Does the project reduce blight, or
3. Would this project become reality without HRA's
assistance.
Don Cochran doesn't feel the Authority would go hog wild as was
stated earlier. He felt the Mayor and City staff had made good
choices of members and guidelines set in order to carry out the
Authority's goals. Cochran also felt the Authority could proceed
in other directions, using the three guidelines above, and still
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be under control at all times.
Dr. White felt it cumbersome to have the Authority borrow from
the City every time it needed funds to do business.
It was the consensus of the group not to give complete taxing
authority to the HRA. Mayor Grimsmo did express his opinion that
the HRA should proceed in other directions, become more proactive
and more risky, but like the Orderly Annexation Area (OAA), should
not be given taxing authority.
T. Eidem restated that the HRA doesn't have funds to accomplish the
day to day operations. For example, if we wanted to ask Dahlgrens
if a project was feasible, it would cost approximately $200.00 with
the Authority's own funds. They would not need to borrow from the
City or wait.
D. Blonigen asked if at some point the Authority would be self
sustaining. T. Eidem explained that this would be partly true in
1985 when the IRI increments aro paid. However, Eidem cautioned
members that to remain self supporting there would have to be continued
projects. After eight years the taxes revert back to the City, school
district, hospital and County. He also commented tnat these monies
were used for the larger project costs and not the day to day operating
e"lense=. Eidem said that nothing would happen ...h this until 1985
because the 1984 Budget had already been certified.
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Council and HRA Minutes - 1/23/84 (Joint Mtg.)
CD. Cochran asked if the HRA had a detailed budget prepared which
included operational expenses, blight removal, capital improvements,
etc., would this meet the Council's approval?
D. Blonigen doesn't agree with approving budgets just to go out
and spend the money. It was the consensus of the entire group
that this would not be the case.
Eidem explained that this would only be an operating budget. If
something big (such as IxI) came up, Council approval would still
be needed.
G. Wieber wanted to know what happened to the money (N-1 mill levy)
the Authority had received. Eidem reported that approximately $6,000.00
was left. He also stated that this amount is dwindling. There are
interest payments to be met and loans to be repaid, etc. wisher
expressed the need for a day to day operating budget so that operating
expenses can be met without having to meet with Council, which only
meets twice a month. If something big should arise, then the Authority
could bring it before the Council.
K. Maus asked if the Authority could got in building speculative
buildings and build in profits. He also wanted to know if the Authority
could work with the Industrial Development Committee on such projects.
Maus felt this was definitely something to pursue. Eidem noted that
C it was statutory legal to build buildings etc. and also have the HRA
make a profit. He further explained that the Authority could become
involved in many different areas such as fuel assistance programs,
rental housing, and rehabilitation programs. All members agreed that
a speculative building is a viable project that could benefit the City
and help the HRA make a profit also.
There was concern as to what the HRA's responsibility was with regard
to everything discussed to this point. It was the group's feeling
that the three criteria described earlier was adequate and that the
Authority has, indeed, handled its past responsibilities well.
The group felt that blight, redevelopment, and economic development
were areas to be pursued. It was suggested the HRA should prepare
rn operating budget for 1485 and return to the Council for further
discussion/approval.
Don Cochran again thanked Dr. White for hie time and leadership. Meeting
adjourned.
Allen L. Pelvit
Director of Economic Development
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