HRA Minutes 04-06-1988MINUTES
f MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
iL Wednesday, April 6, 1988 - 7:OOAM
City Hall
MEMBERS PRESENT: Chairperson Ken Maus, Lovell Schrupp, Ben Smith,
Al Larson, and Everette Ellison.
STAFF PRESENT: Assist. Administrator Jeff O'Neill and HRA
Director 011ie Koropchak.
1. CALL TO ORDER.
Chairperson Ken Maus called the HRA meeting to order at 7:05AM.
2. APPROVAL OF THE REGULAR FEBRUARY 10, 1988 HRA MINUTES, AND
SPECIAL FEBRUARY 19. FEBRUARY 24, FEBRUARY 26, 8:OOAM AND
12:15PM RRA MINUTES.
A motion was made by Ben Smith to approve the regular February 10;
and special February 19. February 24. February 26, 8:OOAM and
12:15PM HRA minutes. Al Larson seconded the motion, -the minutes
stand approved.
3. CONSIDERATION TO APPROVE MODIFICATION 03 OF THE TAR INCREMENT
FINANCE PLAN FOR TAX INCREMENT REDEVELOPMENT DISTRICT 02.
Koropchak explained the Supporting Data (Tax Increment
District $2 Projected Budget Cost) and (Finance Plan
Options A and B). Option A. projected the tax increment
based on $24,500 per unit on the proposed 28 -unit elderly
project and the River Park View 31 -unit. Since no development
agreement was made for the River Park View development, no
assessor's agreement was executed guaranteeing a minimun
estimated market value on the apartment. The EMV with
decrease from $27,500 (Tax Book 1988) to $24,500 (Tax Book 1989).
Option B. has the EMV at $27,500 per unit on the proposed
28 -unit and $24,500 per unit of the River Park View. Doug
Gruber, County Assessor, recommended remaining consistent
with the first elderly project to advoid developers and
public questions. Option A projected a bond issuance at
$260,000 at 9.25 percent for 16 years, Option B-1 projected
a bond issuance at $260.000 at 9.25 percent over 15 years,
and Option B-2 projected a bond issuance at $260,000 at
9.25 percent for 14 years.
Al Larson inquired of what is included in the administration
expense and if it was standard procedure? Statutory allows
for 10% of the project cost, we tformally use 52 to include
legal opinions, advertising fees, staff time, etc. and is
a normal procedure used. Jeff O'Neill inquired if there was any
buried fuel tanks within the demoltfon sites. The only buried
fuel tank was removed with the demolition of the Old Ford
Garage building. Ken Maus inquired of the life duration
HRA Minutes - 4!6188
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3. CONTINUED.
of the district, which is to Year 2010 that would allow for
an additional 5 years beyond the projected debt retirement
options. Al Larson inquired if the debt retirement can be
paid off early if we have extra generated increment. No,
we cannot retire the debt service early, however, we can
accumulate extra increment for reserve to pay off the debt
service, therebye, allowing the county, school district, and
hospital district to collect their portions earlier than
projected. Rick Wolfsteller informed the HRA members TIF
changes are being considered by the 1988 Legislative.
Al Larson made a motion to use Option A for the use of
modifying the finance plan for TIF District 02, Modification
03. Option A establishes the EMV based on $24,500 per unit
on the proposed elderly apartment and River Park View apartment
with an estimated bond issuance of $260,000 at 9.25 percent
for 16 years. Everette Ellison seconded the motion and without
further discussion the motion passed 5-0.
4. CONSIDERATION TO DETERMINE DEMOLITION OPTIONS FOR THE
STELTON'S AND JONES' PROPERTIES.
Since the estimated demolition cost per property is $5,000
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the HRA need not consider competitive bids. After some
discussion by the HRA, Al Larson made a motion that 1)
the HRA advertise locally for bids, the HRA develop their
own specification: protecting Topel's building, Wright
County approved land fill, necessary compaction of land
fill, and proper disconnect of utilities, and 2) mail
specification and bids to the two low bidder on the
Old Ford Garage building and to Mr. Joe O'Connor as he
expressed as interest in the verbal negotiations of his
executed option agreement. Ben Smith seconded the motion,
and without further discussion the motion passed 5-0.
The HRA wishes to review the specifications.
5. CONSIDERATION TO PROCEED WITH COST ESTIMATES FOR BLOCK 51
ALLEY.
Al Larson expressed that the financing for Block 51 alley
should be consistent with past alley projects. Ken Maus
asked if the City was granted an easement or deed on the
other alleys? Who maintains the alleys? Koropchak is
to research the history of fundings methods and if easements
or deeds were granted. Koropchak is to get an estimated
cost to do the project. Jeff O'Neill will obtain an
demolition example from the City of Watertown.
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NRA Minutes - 4/6/88
6. CONSIDERTION TO ESTABLISH POLICY GUILDINES FOR THE USE OF
TAX INCREMENT FINANCING.
The HRA agreed that each request for the use of tax increment
financing should be considered individually (what can be
done). They suggested that Industrial Development Committee,
the HRA, and the City staff should work together to recruit
and promote Monticello. Does the City market themself (offer
more than some other community)? Jeff O'Neill gave an
example of understanding your customer, where a community
was recruiting a toy manufacturer, the city went out and
purchased some of their toys which were on display on the
conference table when company representatives visited the
City. Can the assessments be deferred the first three years?
Can the HRA legally levy j mill to purchase a building and
resale it for $1.00? The HNA expressed one concern with
the Tax Increment Application Form that the authorized
signed should be deleted.
7. OTHER BUSINESS.
Xoropchak informed the committee she had acquired a list of
potential interested persona for the elderly townhouse
r concept from Sally Martie. &oropchak is to set up a meeting
r with Gus and Gary LaFromboise and the HRA for Wednesday
evening, April 20th.
8. ADJOURNMENT.
The HRA adjourned by consensus.
011ie Xoropchak
HRA Executive Secretary
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