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HRA Minutes 05-03-2006MINUTES MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY Wednesday, May 3, 2006 Commissioners Present: Chairman Brad Barger, Steve Andrews, Bill Fair, Dan Frie Commissioners Absent: Darrin Lahr Council Liaison Absent: Wayne Mayer Staff Present: Rick Wolfsteller, 011ie Koropchak, Angela Schumann 1. Call to Order. Chairman Barger called the meeting to order. 2. Consideration to approve the April 5th, 2006 HRA minutes MOTION BY COMMISSIONER FAIR TO APPROVE THE HRA MINUTES OF APRIL 5 , 2006 AND APRIL 12". 2006. MOTION SECONDED BY COMMISSIONER ANDREWS. MOTION CARRIED, 4-0. 3. Consideration of adding or removing items from the aszenda. Barger added as item l Oa an update on the direction of the Monticello Business Park. Koropchak added as item 1 Ob a discussion on funding for marketing efforts related to the Business Park. 4. Consent aizenda. NONE. 5. Consideration to review and approve a Transformation Home Loan application for 511 Elm Street. Koropchak reported that the HRA is asked to consider approving a Transformation Home Loan for a single-family residence at 511 Elm Street. The existing house is only about 600-700 square feet, with a detached garage. She noted that as referenced in the staff report, the applicant is requesting the loan to • triple the square footage of the structure. O'Neill had confirmed for Koropchak that this property is not included in the proposed Ruff redevelopment area. The Commissioners noted that the loan was intended for this purpose. Koropchak reported that Anderson had done a preliminary inspection. The total value of the improvements is $160,000 and the applicant does have financing. The bank had noted to Koropchak that the applicant was going to have work equity into the improvements. Frie inquired what the maximum loan amount is. Koropchak explained that the maximum amount is 25%, with cap of $20,000. MOTION BY COMMISSIONER ANDREWS TO APPROVE TRANSFORMATION LOAN NO. 002 FOR 511 ELM STREET, ANTOINETTE BREIWICK IN THE AMOUNT OF 25% OF THE VERIFIED SWORN CONSTRUCTION STATEMENT OR NOT GREATER THAN $20,000, SUBJECT TO A COMMITMENT FROM THE LENDER. MOTION SECONDED BY FAIR. MOTION CARRIED, 4-0. Koropchak stated that it was her understanding that the HRA attorney would draft agreement and closing information. • Fair suggested that an update to the brochure could be done to include these two properties as examples of the program. Barger asked if anything on the transformation program was on the website. Koropchak stated that she will check. 6. Consideration to set a workshop date for the sole purpose to discuss ideas and to target properties or areas for purchase as properties come on the market. Koropchak stated that Fair had requested that this be put on the agenda, along with Wolfsteller's year-end report on the district fund balances. Koropchak stated that the HRA needs to verify Wolfsteller's report against Ehler's projections, which includes debt service over the years. Fair asked if we have a deadline in relationship to the funds on the districts. Koropchak confirmed that there is a deadline, but stated that the HRA had already completed a modification for one district, and would be doing districts 2 and 24 in the coming months. She reminded the Commissioners that they are modifying the budgets, enlarging them, so that excess tax increment does not have to go back to the County. Those were the three districts recommended for modification by Ehlers. Fair stated that he thought there should be a discussion on the whole topic, to look at all the districts and look at properties that would be cornerstones for downtown redevelopment. • Koropchak noted that the HRA does not typically hold a regular July meeting. The Commissioners agreed to hold a workshop in June, after the regular HRA meeting. Fair requested some digital images, zoning maps, fund balance information and information on when funds would be available. Mayer asked what areas the HRA would be talking about. Koropchak stated that is what will be defined. Fair stated that having a plan will allow staff to start the process. Mayer asked if Loch would be selling his business. Frie stated that he had found a tenant, but wanted to retain ownership. 7. Consideration to appoint an HRA Commissioner to the Comprehensive Plan, Update Task Force. Koropchak explained that the Council had requested that the HRA provide one representative to the comp plan task force. She reported that the update process is expected to go about 14 months. Fair stated that he wanted to express concern related to the discussions regarding the comprehensive plan updates. Fair reminded the group that with three Council members present at task force meetings, it will be a public meeting and subject to the open meeting law. Mayer stated that they will post a notice for each meeting. Fair expressed some concern that 3 council members would be present for the discussion and wondered how that would impact the Council as a whole. Fair stated that he would hope that all would attend. Mayer stated that was a valid question, but by having three attend, it was thought that they would be throwing the responsibility back to the Council. Andrews stated that having three present may fosters ownership in the process. Fair also asked why three township representatives are on the task force. He noted that it is supposed to be the City's comprehensive plan. Mayer stated that he agrees and noted that at meetings he has attended the township representatives have been. Fair stated his concern about influence of township on the task force. MOTION BY FAIR TO APPOINT COMMISSIONER FRIE TO THE COMPREHENSIVE PLAN UPDATE TASK FORCE, WITH COMMISSIONER ANDREWS AS ALTERNATE. MOTION CARRIED, 4-0. 8. Consideration to authorize pavment of HRA bills. MOTION BY COMMISSIONER ANDREWS TO AUTHORIZE PAYMENT OF BILLS. MOTION SECONDED BY COMMISSIONER FAIR. MOTION CARRIED, 4- 0. 0 9. Consideration of Executive Director's Report • Koropchak reported that she had not yet received final elevations for Karlsburger and that the City had authorized extension of sewer and water trunk lines across the property. She also noted that the attached final TIF loan reports for Aroplax and Suburban and would like to close those out. 10. Committee Reports a. Marketing 1) Barger inquired of the other Commissioners their reaction to AVR's impact on the City's goal of a high -end industrial park. Barger stated that he was questioning the intent for the park, as Koropchak has received a number of inquiries for distribution centers who would purchase the property at fair - market value. Barger stated that his perspective is that chances are if a cement plant goes there, the City will not get high -end industrial development. In that case, perhaps the HRA should sell it as quickly as possible and then target another area to do a high end industrial park. He indicated that if industry wants to locate there and they aren't going to get TIF assistance, he doesn't have a problem with that. Mayer stated that you have to define the type of distribution company. Koropchak stated that she had gotten direction on Dahlheimer's site as they are a local business and paid well, so the HR.A. did do TIF assistance. Koropchak noted that the covenants in place do not allow outdoor storage, but do allow trucks or trailers in everyday operation. They have to be in the rear yard. Koropchak noted that the covenants and criteria are different things. For market rate, a business just has to meet the covenants and zoning. Mayer stated that he doesn't know what type of industry doesn't store trailers. Barger stated that his point is that with an AVR relocation, the HRA may need to change focus. Koropchak noted that there is a consistency problem with AVR and other potential users. Barger stated if a business wants assistance, then they still need to follow the criteria. Mayer stated that he wouldn't come to a decision too early, holding out hope that AVR doesn't locate there. He stated that the more growth, the better, especially if businesses are willing to pay at market rate. Koropchak stated that currently the market is about $3.00 per square foot. Koropchak stated that initially, the City only purchased 35 acres. Koropchak stated that she would like Council to authorize buying the balance of the property, which would include the AVR site. Wolfsteller stated that he thought it might be best to pay off the contract for deed. 2) Koropchak stated that Marketing Committee currently has about $4000 in • the budget left from the $30,000 initial amount. She reported that the Committee would like to move forward on the 2006 marketing plan, which includes billboards. She stated that the problem is that the 2006 budget request is $16,500 and the Council budget is for 2007. Koropchak asked if the Council doesn't approve the budget, would the HRA be a backup for funding. Wolfsteller asked what we would be doing in 2007. Barger stated that the Committee had cut out sponsoring golf outing and classified ads. Barger stated that the billboard and internet are probably the keys. Koropchak noted that the business park's entrance sign should be up in a couple of weeks. Barger noted that the marketing efforts drive people to the park, but they need some kind of identification once they are there. MOTION BY COMMISSIONER ANDREWS TO AUTHORIZE THE HRA TO PROVIDE FUNDING IN THE AMOUNT OF $16,500 FOR MONTICELLO BUSINESS PARK MARKETING EFFORTS, AS A BACKUP TO COUNCIL FUNDING. MOTION SECONDED BY COMMISSIONER FRIE. MOTION CARRIED, 4-0. b. Fiber Optics Koropchak reported that the Fiber Optics task force has their first meeting with the consultant on Wednesday. Andrews stated that he will be there. Fair • asked what would be happening. Mayer stated that the task force will review the contract for feasibility to make sure there is an understanding of all of the aspects. They will also be gathering information and perhaps sign the contract. Barger asked when the feasibility study would be back. Mayer stated that it is expected in August. Barger asked what the intended reach is. Mayer stated it would be City- wide. The depth, reach, and even validity will be determined by the study. Barger asked about financing. Mayer stated that Springsted will be looking at that. 11. Adi ourn MOTION BY COMMISSIONER ANDREWS TO ADJOURN. MOTION SECONDED BY COMMISSIONER FRIE. MOTION CARRIED, 4-0. R Y r v� ecor #-.