HRA Minutes 02-19-1988MINUTES
C MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY SPECIAL MEETING
Friday, February 19, 1988 - 10:00 AM
City Hall
Members Present: Chairperson Ken Maus, Al Larson, Ben Smith,
Everette Ellison, and City Administrator Rick wolfateller.
Members Absent: Lowell Schrupp.
The special meeting of the HRA was called to order by Chairperson
Ken Maus. The purpose of the meeting was to establish purchase
prices for the properties of O'Connor, Stelton's, and Jones'.
The Planning Commission held a public hearing and approved the
rezoning request to rezone platted lots from B-4 (regional business)
to PZM (performance zone mixed) zoning, thereafter, approved a
condiltional use permit to allow construction of an apartment
building In excess of the maximum number of units allowed. The
rezoning approval is good for a period of time not to exceed
December 31, 1988 or sooner if the applicants do not receive
approval of their subsidized elderly housing project. The HRA
received the appraisal of the Jones' Manufacturing property
from St. Cloud Appraisal, Estimated Market Value, $52,000.00
(land $13,000 and building $39,000), based on the beat use of
the property as presently improved for Commercial/Retail Light
Industry.
Koropchak had prepared a comparison of appraisals, city estimated
market values with projected 1988 taxes and status of assessments
due on the three above properties. The Old Ford Garage Building
was included in the comparisons plus information on it's project
cost. (See Supporting Data). At the meeting, Koropchak said she
had run estimated project cost numbers based on the total acquisition
of the three properties at $150,000 and an additional $30,000 for
relocation and moving expenses, and using the $56,000 from
Metcalf and Larson to pay off the Ford contract for deed. With
an estimated total project cost of $260,000 the Debt/Service
on a bond issuance would be $30,200 (18 years at 9.252, $116.13
per one thousand dollars equal annual payment). The tax increment
projected per year is $39,600 with the construction of a second
elderly project.
After some discussion by the KRA, the consensus of the committee
was to offer Monti Truck Repair, $47,000.00; Stelton's, $58,000.00;
and Jones' Manufacturing, $57,000.00 which includes relocation and
moving expenses, 1988 taxes to be pro rated between the seller and
buyer, assessments to be paid in full by the seller. Contingent
upon 1) approval of the Monticello Housing and Redevelopment
Authority, and 2) approval of Farmers Home Administration (FmHA)
funding. The option for 120 days or through June 30, 1988 and a
returned excuted option to the City Hall by February 26, 1988,
Cinorder to meet FmHA application deadline of March 1, 1988.
HRA Minutes - 2/19/88
Continued.
Whether to use a purchase agreement or an option agreement
is to be determined by legal counsel. The agreements must be
prepared and delivered to Al Larson and Ben Maus on this date
to allow the sellers one week for their response.
The rationale the HRA used to arrive at the above purchase prices
was using the same per square foot land price as the Old Ford
Garage Building ($5.04 per sq ft). Since the three above
parcels are existing businesses the City's EMV on the buildings
were added plus $5,000 for relocation and moving expenses.
The purchasing prices and contingencies as discussed and the consensus of
the BRA members was made into a motion by Al Larson and seconded
by Everette Ellison. The motion passed 4-0.
Qw,:. Y d, o
011ie Eoropchak
HRA Executive Secretary
A