HRA Minutes 02-28-1984MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
SPECIAL MEETING
Tuesday, February 28, 1984 - 7:30 A.M.
Members Present: Don Cochran, Bud Schrupp, Vic Vokaty
Staff Present: Tom Eidem, Allen Pelvit
Members Absent: Gary Wieber, Jack Reeve
A special HRA meeting was held in the City Hall Conference Room
on Thursday, February 26, 1984.
Chairman Cochran opened the meeting and turned the floor over
to Tom Eidem. Eidem explained why the Authority was in attendance
(to execute two legal documents, 1 - loan agreement and, 2 -
purchase agreement). He then explained each document and read the
documents to the members present.
D. Cochran inquired about the results if the project fell apart.
He understood if the deal fell through that the Authority would
give Fulfillment Systems, Inc. (FSI), the title to the property
L and we (HRA) would be clear of everything. He also reviewed his
thoughts regarding the tax increment financing (T.I.F.) for this
project.
T. Eidem explained that there might be some concern with the deed.
1) the seller should be liable for the first two months' property
taxes, and 2) the $2,000.00 earnest money should be received up
front. This money would be a part of the $130,000.00.
The Authority wanted to know why FSI wished to delay the purchase
of the property. T. Eidem explained that FSIs controller wanted
to keep a firm grip on their ready cash assets and know exactly
how their cash flow was.
Don Cochran asked for and received a brief explanation of the UDAG
operations by T. Eidem.
B. Schrupp made a motion to enter into an interest free loan in the
amount of $130,000.00 from FSI, the purpose of which is to buy or
purchase land described as Lots 6, 7, and 8, Block 2, Lauring Hillside
Terrace. It was seconded by V. Vokaty and approved unanimously.
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Special HRA Minutes - 2/28/84
A second motion by B. Schrupp was made to negotiate a purchase
agreement with the owners of Lots 6, 7, and 8, Block 2, Lauring
Hillside Terrace, using the interest free loan ($130,000.00) from
FSI. This also was seconded by V. Vokaty and passed unanimously.
D. Cochran asked about the dollar amounts that would exchange hands.
T. Eidem explained that $129,500.00 ($130,000.00 less the initial
down payment of $500.00) would be given to the owners. The Authority
is also to receive its $2,500.00 fee.
T. Eidem explained that Joe Poehler is still pursuing his project.
He went on to say that Brad Larson inquired about the property.
T. Eiden informed B. Larson that the property might be opened for
new developments. However, standards were set and would have to be
met. The Authority is still in favor of the Poehler Project, but
will seek other developments if Poehler's cannot survive.
Allen L. Pelvit
Director of Economic Development
C
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