HRA Minutes 02-21-1989MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Tuesday, February 21, 1989 - 7:OOPM
City Hall
MEMBERS PRESENT: Chairperson Al Larson, Lovell Schrupp, Ben
Smith, and Tom St. Hilaire.
MEMBERS ABSENT: Everette Ellison.
CITY STAFF PRESENT: Rick Wolfsteller and 011ie Koropchak, HRA Director
CITY STAFF ABSENT: Jeff O'Neill.
1. CALL TO ORDER.
Chairperson Al Larson called the special HRA meeting to order
at 7:OOPM.
2. CONSIDERATION OF PROPOSAL BY WEST PRAIRIE PARTNERS FOR TAX
INCREMENT FINANCING.
Mr. Jim Metcalf of West Prairie Partnership informed the
NRA of three possible options for redevelopment of the
following properties: former Baptist Church, Reed, Gills
C Auto, and Katzmarek. One option would require consideration
of the use of tax increment financing by the HRA. Also,
Mr. Metcalf advised the HRA if they were prepared to consider a
recmmmendatlon for rezoning the area from R-2 to R-3 to
the Planning Commission or the City Council regarding
their proposal.
Current statue of the properties as outlined by Mr. Metcalf.
1. Former Baptist Church acquired by West Prairie Partnership.
2. West Prairie Partnership has option of the Reed property
and signed request by Reed to rezone from R-2 to R-3.
3. West Prairie Partnership has no option of the Gille Auto
property but has signed request by Fred Gills to rezone
from R-2 to R-3.
4. Katzmarek has no interest in selling.
Three possible options as outlined by Mr. Metcalf.
1. Develop the former Baptist Church into 6 or 7 residential
lots or townhouses Which are appropriate uses for R-2.
2. The HRA acquire, raze, and place the Reed and Gille properties
on the market for redevelopment therebye eliminating a blighted area
3. Do nothing with the Reed and Gille properties and let time f
resolve the issue.
HRA Minutes 2/21/89
2. CONTINUED.
Other comments made by Mr. Metcalf.
1. If the area was rezoned to R-3, West Prairie Partnership
makes no guarantee to go through with development at this time.
2. Preliminary estimated figures to acquire and raze the
Reed and Gille properties was $400,000 not feasible for single
resident redevelopment.
3. Area residents are opposed to rezoning from R-2 to R-3.
4. Monticello townhouse and apartment market is presently
saturated.
5. Acquisition and raze of properties by the HRA would eliminate
blight.
6. Possible soil contamination from buried unused gasoline tanks.
7. Request for rezoning scheduled for Planning Commission on
March 7 and City Council on March 13.
8. Elimination of blight is an asset to Par West, the Country Club,
and the neighborhood.
LMr. Metcalf thanked the HRA for listening to their proposal/concerns
and departed the meeting. Chairperson Larson asked two neighborhood
residents present at the meeting (Karen Doty and Tom Moore) As
taxpayers what would they like to see develop in the area? They
were not opposed to redevelopment and cleaning up of the area
but want the zoning to remain as R-2 and preferred development of
residential lots however aren't opposed to townhouses.
The HRA's decided to refrain from any zoning recommendation or
any use of ta„ ...crement financing because no definite plans or
information was presented to the HRA by West Prairie Partnership.
3. CONSIDERATION OF REVIEWING AND AWARDING BIDS ON DEMOLITION OF
STELTON'S LAUNDROMAT AND JONES MANUFACTURING BUILDINGS.
Opening and reading aloud of the bids for demolition of the
Stelton and Jones buildings was held on Friday, February 10, 1989
at the City Hall Council Chambers with low bid of $5,200 by
Schluender Construction and high bid of $18,300 by Schrader
Excavating of Sauk Rapids, Minnesota. A total of nine bids
were received. As part of the bid requirements, the City had
requested a bid security consisting of a bid bond, certified
check, or cash equivalent in the amount of 5 percent of their
bid. The low bidder. Schluender Construction submitted n personal
check as their bid security, which does not meet specifications.
HRA Minutes - 2121/89
3. CONTINUED.
Second low bidder, Veit Construction of Rogers, submitted a
5 percent bid bond for their $6.969.13 bid.
Chairperson Larson asked to see a copy of the specifications
and bids for demolition to verify the clarity of the bid
security request. The HRA agreed the specifications and bids
clearly stated the request of a bid bond, certified check,
or cash equivalent. Rick Holfsteller informed the HRA that
the HRA could be open to a law suit by the second low bidder
if awarding of the bid didn't follow specification and bid
requirements. Ben Smith made a motion for the HRA to award
the demolition bid to the second lowest bidder, Veit Construction
of Rogers, Minnesota for $6.969.13 inclusive of a 5 percent
bid bond. It is with deep regret that the HRA couldn't award
the bid to a local firm, Schluender Construction, for the low bid
of $5,200 and the HRA encourages Schluender Construction to
submit future bids with the requested bid security. The motion
was seconded by Tom St. Hilaire and with no further discussion
the motion passed 4-0. Notify Schluender of HRA'a regrets.
4. ADJOURNMENT.
The special HRA meeting adjourned at 8:15 PM.
011ie Xoropchak, HRA Executive Secretary