HRA Minutes 12-06-2006r�
MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, December 6, 2006 - 6:00 p.m.
Bridge Room - Community Center
Commissioners Present: Chair Brad Barger, Vice Chair Steve Andrews, Darrin Lahr, and Bill
Fair.
Commissioner AbsentDan Frie.
Council Liaison Absent: Wayne Mayer.
Staff Present: Executive Director 011ie Koropchak.
1. Call to Order.
Chair Barger called the HRA meeting to order at 6:00 p.m. declaring a quorum.
2. Consideration to approve the November 1, 2006 HRA minutes.
Commissioner Andrews made a motion to approve the November 1, 2006 HRA minutes.
Seconded by Commissioner Fair and with no corrections or additions, the minutes were
approved as written. Yeas: Andrews, Fair, and Barger. Nays: None.
3. Consideration of adding or removing items from the agenda.
Koropchak informed Commissioner Fair that his five-year term on the HRA expires December
2006 and requested his consideration or consent for appointment to another five-year term.
Commission appointments are made by Council in January.
Additional information provided for items 8. and 11.
4. Consideration to authorize annual payment of the amended Contract of Deed between the City
and the Otter Creek Group, LLC.
Since the HRA. was not involved in the acquisition and development of the 14-acre site for the
AVR, the HRA Attorney suggested the HRA table any action relative to ratifying payment for
the additional 53 acres via the Contact for Deed exercised between the City and Otter Creek
LLC. This will allow staff the opportunity to work with the Finance Department requesting a
copy of the City's uses and sources statement associated with the AVR settlement and
submission of construction invoices for eligible costs to be approved by the HRA.
Commissioner Fair made a motion to table payment of the exercised Contract for Deed
between the City and Otter Creek LLC in the amount of $1, 269, 900.33 and to authorize
the 2006 payment of the Contract for Deed between the City and Otter Creek LLC in the
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amount of $151, 857. S6. The motion was seconded Commissioner Andrews and with no
further discussion, the motion carried. Yeas: Fair, Andrews, and Barger. Nays: None.
5. Consideration to adopt a resolution approving the Decertification of TIF District No. 1-25, an
Economic District (Blue Chip Development.)
In an analysis completed by Ehlers & Associates, the Ending Fund Balance (2009) for TIF
District No.1-25 was projected to be $37,603 and the projected uncommitted revenues was
$12, 100. In an interpretation of law by HRA Attorney Bubul, an authorization to expend the
$12, 100 for eligible costs was necessary prior to the retirement of the $325000 pay -as -you- o
g
note in August 2006.
Therefore, Commissioner Andrews made a motion to adopt a resolution approving the
Decertification of TIF District No. 1-25, an Economic District (Blue Chip)
Commissioner Fair seconded the motion and with no further discussion, the motion
carried. Yeas: Andrews, Fair, and Lahr. Nays: None. Abstention: Barger.
6. Consideration to adopt a resolution approving the Decertification of TIF District No. 1-23. an
Economic District (Allied Properties.)
In an analysis completed by Ehlers &Associates, the Ending Fund Balance (2009) for TIF
District No.l-23 was projected to be $179,487 and the projected uncommitted revenues was
$675100. In an interpretation of law by HRA Attorney Bubul, an authorization to expend the
$675100 for eligible costs was necessary prior to the retirement of the $18 1,000 Tax Increment
Revenue Note in August of 2006.
Therefore, Commissioner Andrews made a motion to adopt a resolution approving the
Decertification of TIF District No. 1-23, an Economic District (Allied Properties) The
motion was seconded by Commissioner Fair and with no further discussion, the motion
carried. Yeas: Andrews, Fair, and Barger. Nays: None.
7. Consideration to review spread sheet of revenues and expenditures on Otter Creek Crossing
Phase I and II and assess need to amend discount price of $1.00 per sq ft.
The commissioners reviewed a draft copy of a spreadsheet of revenues and expenditures on
Otter Creek Crossing Phase I and II. The gentlemen's agreement between the City and HRA
was an understanding the HRA would act as the agent for marketing and sales of Otter Creek
Crossing. The City and HRA matched funds and paid cash for the first 35 acres purchased
• from Otter Creek LLC (Chadwick.)
Total HRA cost to purchase the 120 acres and the Rask property is $3,247,283. The amount
of P&I expended by the HRA for land to date is $2,152,971.21 (pending.) The estimated cost
by WSB for construction of infrastructure was $2,822,000. The cost for the bids of Phase I
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and II plus grading costs is $2,750,365. Phase III yet to be purchased and completed. Trunk
fees were estimated at $7,947 per acre in 2003 and proposed at $13,876 per acre in 2007.
The HRA sold two lots (10.724 acres) for $647,678 and expect to generate $554,037 (NPV)
in tax increment. The City donated 12 acres to AVR at a value of $1,385,208. The HRA
requested a clearer estimate of the developable/sellable acres and expenditures, and the amount
contributed by the city for the AVR site prior to determining a need to increase the $1.00 per
sq. ft. If need be, perhaps, the best alternative is to eliminate the no trunk fee. The
commissioners agreed that the $3,245/net acre ponding fee was not applicable to the HRA
since the HRA donated the land and pays for construction of the ponds. No action taken.
8. Consideration to respond to negotiations by Steve Conroy.
The commissioners reviewed the emails from Mr. Conroy relative to his negotiations with
Froslie and noted the most recent email stating the Springborg building had sold. The
commissioners inquired to the sales price of the Springborg property. Noting their desire to
purchase both properties, the HRA took a "think about it" approach. They did discuss and
agreed they were not interested in a ten-year operation on the Froslie property. They noted the
difference between the $500,000 and $327,789 HRA offer was $172,211. Again, the
commissioners agreed to a "think about it" approach.
9. Consideration to discuss and act on second request from Walker In-store.
The HRA was somewhat unclear to the amount of acreage Mr. Walker desired. Walker had
submitted a site concept for a 10,240 sq ft facility on the designated site (Lot 2, Block 1, Otter
Creek Crossing 3' Addition) and front, rear, and side elevations. Walker noted they could not
accept the HRA offer for the designated lot due to the close proximity to the concrete ready
mix plant and were interested in finding a site suitable to both the HRA and Walker.
Koropchak had not calculated the maximum amount of land Walker could purchase using a
10,240 sq ft facility since they requested a 1.5 acre site at $1.00 per sq ft. Commissioner
Lahr made a motion to offer the designated site (Lot 2, Block 1, Otter Creek Crossing 3rd
Addition) to Walker at a total price of $43, S60 with no assessments and no trunk fees.
The motion was seconded by Commissioner Fair and with no further discussion, the
motion carried. Yeas: Lahr, Fair, and Barger. Nays: None.
10. Consideration to authorize payment of HRA bills.
Commissioner Fair made a motion to authorize payment of the attached HRA invoices.
Seconded by Commissioner Lahr and with no discussion, the motion carried. Yeas: Fair,
Lahr, and Barger. Nays: None.
11. Consideration of HRA Executive Report.
In addition to the written report, Koropchak indicated a good lead from an engineering firm.
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Per phone the company noted seventy to one hundred jobs at annual wages between $50,000
to $70,000. Applications mailed and encouraged opportunity to visit existing facility.
Regarding the BioScience Zone, Jerry Wenner, DEED, called. Will provide Koropchak with a
list of the 42 cities to join the Zone and requested notification when the opportunity reopens.
The HRA commissioners were given a letter from the IDC requesting the preservation of net
earnings from the sale of Otter Creek Crossing for future acquisition of land for industrial and
information technology development. Additionally the IDC requested, beginning budget year
2008, the HRA and City commit to a matching fund for future acquisition of land for industrial
and information technology development.
12. Committee Reports: Marketing - Researching "what does it take to attract a campus like
Medtronic?" Looking to create a vision for the future. Next meeting,
December 13, 7:00 am.
Fiber Optics - Update to the Council in December and authorize to
proceed in January.
13. Next regular HRA meeting - Wednesday, January 3, 2007.
14. Adi ournment.
Commissioner Fair made a motion to adjourn. Seconded by Commissioner Lahr and with no
further business, the HRA meeting adjourned at 7: 45 p.m.
011ie Koropchak, Recorder
4D
HRA Chair
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