HRA Minutes 02-10-1988MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY MEETING
Wednesday, February 10, 1988 - 7:OOAM
City Hall
Members Present: Chairperson Ken Maus. Lowell Schrupp, gen Smith,
and Al Larson.
Members Absent: Everette Ellison.
1. CALL TO ORDER.
The HRA meeting was called to order by Chairperson Kenneth
Maus at 7:10AH.
2. APPROVAL OF THE JANUARY 6, 1988 AND THE JANUARY 26, 1988 HRA
MINUTES.
Lovell Schrupp made a motion to approve the January 6th and the
January 26th HRA minutes, seconded by Al Larson, the motion
carried 4-0.
3. UPDATE ON THE NEGOTIATIONS FOR TAX INCREMENT DISTRICT A2 PARCELS
FOR A POSSIBLE ELDERLY HOUSING PROJECT 02.
At the January 26, 1988 HRA meeting the committee had elected
Al Larson and Ken Maus to initial negotiations with Joe O'Connor
and Donna and Ervin Stelton. Mr. Larson reported that Mr.
O'Connor was out of town; however, Al had obtained Joe's
phone number from his daughter. Mr. Larson proceeded to
contact Mr. O'Connor who was definitely interested in neg-
gotiations with the City, he is more interested in relocation
than to retire his business. Mr. O'Connor may be home
this weekend. Ken Maus reported that Rick Wolfateller,
Donna and Ervin Stelton, Gary De Boer, 011ie Koropchak and
himself had met and discussed concept of the project but
had no discussion of numbers. The HRA is not interested in
the building but recognize they may have to purchase
the property, the business and it's goodwill, and pay for
relocation and moving expense. Gary DeBoer was to check
on relocation sites such as Kjellberg's, Harry Bebo's and
the A-V Room (old meat market). Perception from the Stelton's
was it may be doable.
The BRA than discussed the rationale of the O'Connor and Stelton's
appraisal, the $17,500 and $15,500 estimated market value respectively,
based on the beat use of the property was for demolition; however,
the HRA recognizes to the owners they are selling an existing
business. The appraisal of the Jones property not being completed
at this time, the HRA questions if the property will be treated
the same. The HRA further discussed the possibility to relocate
O'Connor with Dahlheimer or at another site, Ken Maus didn't feel
the HRA had time for a trade.
Koropchak reported that the proposed development would be 28 units
if the three properties were acquired and 24 units if only Stelton's
and O'Connor's were acquired. Relocation costs are determined
HRA Minutes - 2/10/88
C 3. CONTINUED.
by two methods by Actual Costs or Fixed Payment. According
to Mr. Tom Hayes, City Attorney, if the HRA has a willing
buyer and willing seller, and a fixed payment is agreeable
the HRA would need to hold a public hearing since the
relocation and moving expenses are the use of taxpayers monies.
Bud Schrupp inquired about improvement of the alley? Ken Maus
responded if the TID has sufficient monies and with the deletion
of 3 to 4 property owners it may be easier for the City to
acquire easements from the remaining property owners than a
few years ago because of the fewer number of property owners.
Koropchak had recaped the project cost using $50,000 per property
acquisition coat. The HRA discussed how to arrive at acquisition
cost, Mr. Larson suggested to start by comparisons to the
Flake property acquisition. another questioned if Stelton's
had their property appraised. Rick Wolfsteller estimated the
project was workable with numbers at $80,000 to $90,000 per property.
Ken Maus suggested that the HRA go at one step at a time:
first,negotiate with O'Connor; second, negotiate with Stelton's;
and third, negotiate with Jones. Metcalf and Larson needs
the HRA to obtain options on the properties for FmHA application
deadline March 1, 1988.
4. NOTIFICATION OF MEETING AT THE SENIOR CITIZEN'S LOUNGE.
C Ben Smith, Al Larson, and 011ie Koropchak had met with a
handful of citizens at the Senior Citizens Lounge on
February 3, 1988 in the afternoon. The small group of
citizens agreed that the concept of townhouse housing
close to downtown as a good idea; however, of that group
no one was interested as a possible purchaser. A portion
of Block 33 has been considered by the HRA as one possible
site location for the elderly townhouse project. Koropchak
had previously reported that the Olson property's asking
price is $74,900.00, Ben Smith reported the Lindberg property
is for sale but no numbers given. Suggested interested
persons (purchasers) of the said project are: Lee Trunnell,
Lois Racine, Dr. Charles Fish, and Jean Brouillard.
Koropchak having checked with Wright County State Bank for
guidelines for a builder to secure financing on such a
project. The bank replied it is not always necessary
for a builder to have a percentage of the units sold prior
to securing financing, it is based on one's credit rate
and possible known local builder. Based on this information,
Al Larson expressed he thought the HRA was proceeding in the
wrong direction and suggested the HRA act as the catalyst
for the site location and as a catalyst to a builder for
the need of an elderly townhouse project close to downtown,
on the upper scale, and the size of units; therebye, the
builder takes the risk of selling the units. The committee
Cis aware the first unit is the hardest Lo s<11 and 618Lthe elderly want to see and walk through a unit.
BRA Minutes — 2/10/88
6. CONTINUED.
Roropchak is to verify the location of the water and sever
lines to Block 33 and is to verify if the BRA according
to Minnesota Statutory can purchase and demolish property
for the purpose of selling property to a developer for
an upscale elderly housing project. Other suggested
site locations were in the vicinity of River, Locust, and
Linn Streets.
5. RECAP OF 1988 MONTICELLO TAR INCREMENT DISTRICTS.
The RRA accepted the report as written.
6. OTHER BUSINESS.
None.
7. ADJOURNMENT.
The BRA meeting adjourned by consensus of the committee.
011ie Roropchak
NRA Executive Secretary
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