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HRA Agenda 06-07-1989AGENDA MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY Wednesday, June 7, 1989 — 7:OOPM City Hall MEMBERS: Chairperson Al Larson, Ben Smith, Lovell Schrupp, Everette Ellison, and Tom St. Hilaire. STAFF: Rick Wolfsteller, Jeff O'Neill, and 011ie Koropchak. GUEST: Pat Pelstring, Business Development Services, Inc. 1. CALL TO ORDER. 2. APPROVAL OF THE HAY 5, 1989 HRA MINUTES. 3. CONSIDERATION TO REVIEW AND ACCEPT THE TAR INCREMENT FINANCE APPLICATION. 4. CONSIDERATION OF HRA ALTERNATIVES FOR TIF DISTRICT NO. 1-8 (NORTHERN STATES POWER COMPANY). 5. CONSIDERATION TO REVIEW DAVID FICEW S REDEVELOPMENT HOUSING PROJECT PIAN AND FINANCIAL PROPOSAL. 6. CONSIDERATION TO REVIEW LEONARD BABINSKI AND/OR DONALD BABINSKI'S REDEVELOPMENT HOUSING PROJECT PLAN PROPOSAL. 7. CONSIDERATION OF UPDATES: Pledge Agreement Relinglshment Between City and the HRA. Development Agreement Between Broadway Square Limited Partnership and the HRA. TIP District /2 Demolition Completion. TIF District /4 TIP Guarantee. 8. OTHER BUSINESS. 9. ADJOURNMENT. MINUTES MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY Thursday, May 4, 1989 - 7:00 PM City Hall MEMBERS PRESENT: Chairperson Al Larson, Lovell Schrupp, Everette Ellison, and Tom St. Hilaire. MEMBERS ABSENT: Ben Smith. STAFF PRESENT: Rick Wolfsteller and 011ie Koropchak. 1. CALL TO ORDER. Chairperson Al Larson called the HRA meeting to order at 7:05 PM. 2. APPROVAL OF THE MARCH 22, 1989 AND APRIL 4, 1989 HRA MINUTES. Chairperson Al Larson indicated the March 22, 1989 HRA minutes, agenda item 4. Consideration of Review TIF Policies and Procedures did not include the HRA's rationale for the approval of the Economic Development Program Contract between the HRA and Business Development Services, Inc. Corrections to the minutes shall include the HRA's rationale for contracting with BDS. Inc. as 1) promote and enhance greater exposure of the City of Monticello, 2) potential contacts or leads for the City of Monticello, 3) financially economical if TIF plan not approved, no payment to BDS, Inc. if TIF plan is approved cost is passed on through, and 4) a vin -vin situation for all parties involved. Lovell Schrupp made a motion to approve the March 22, 1989 HRA minutes with the addition of the above named corrections, seconded by Everette Ellison the minutes stand approved as corrected by a 4-0 vote. Chairperson Al Larson suggested a report from City Staff on the status and workability of the contract with RDS, Inc, and a report on planned projects. Lovell Schrupp made a motion to approve the April 4, 1989 NRA minutes, seconded by Al Larson, the minutes stand approved as written. 3. CONSIDERATION TO HEAR MR. FICEK'S PROPOSALS FOR THE ELDERLY TOWNHOUSE HOUSING CONCEPTS. The HRA received a copy of David Ficak'o preliminary proposal for housing redevelopment. The preliminary proposal was prepared by Mr. Ficok after his visit to Monticello where he was informed of the HRA'a goals, HRA Minutes - 5/4/89 Page 2 3. CONTINUED. elderly housing concepts, and toured the HRA's recommended site locations. Mr. Ficek's prelimiary proposal included the phased redevelopment of all six recommended site locations. Area A). 20 single level towns and three singles. B) 16 two story towns, C) 16 single level tows. D) 12 single level towns, E) 8 two story tows and 4 houses and F) 48 two story tows. Koropchak advised the HRA members of Pat Pelstring's opinion of not recommending the NRA approve the developer's three year exclusive right to all property in the redevelopment district(s) or that the developer shall be deeded the parcels for $1.00. The HRA general consensus that they were interested to continue the process and interest of redevelopment with Mr. Ficek, however, recommended the fine tuning of the preliminary proposal to 1) the developer shall not have three years exclusive right to all property in the redevelopment district(s); 2) the developer shall not be deeded the parcels for $1.00, however, will be given consideration inclusive of the HM's TIF Policy Guidelines (The HRA may provide assistance to the extent of the available project increment, to compensate the business/developer to "equalize" the project to accepted market standards; and 3) suggested Area A. proposed 20 single level tows and 3 houses was too many units. The HM members recommended Mr. Polstring prepare a preliminary financial account for TIF assistance for the HM to better understand their potential role/assistance in the redevelopment. 4. CONSIDERATION TO ADOPT THE JOINT POWERS AGREEMENT BETWEEN THE HRA, THE EDA. AND THE CITY COUNCIL. Tom St. Hilaire made a motion approving the resolution authorizing the HRA to adopt the joint powers agreement between the HRA. the EDA, and the City Council. The motion was seconded by Everette Ellison and with no further discussion passed 4-0. 5. CONSIDERATION TO REVIEW AND ADOPT RELEASING THE TAX INCREMENT PLEDGE AGREEMENT BETWEEN THE HRA AND THE CITY OF MONTICELLO. Administrator Rick Wolfeteller presented the HRA members with a written copy of the Tax Increment Finance Districts No. 1-1 through 1-7 estimated financial status and explained the system. The approximate 2/1/89 districts balance, exclusive of any elderly project coat paid in 1989, is $40,613. The projected district balance as of 2/90, with the assumption the pledge agreements between the HRA and the City Council aro relinquished and reduced to moot statutorily requirements of 1052 loval of debt service coverage rather than the present 1502 level of debt servica coverage, is $111,101. Reports dated May 4. 1989. Mr. John Groen of Holmes 6 Graven will prepare the resolutions for relinquishing the pledge agreements which haven't boon received at the City Hall therefore Koropchak advised the NRA not to adopt the resolution but to recommend the City Council review tho pledge agreement. HRA Minutes - 5/4/89 Page 3 5. CONTINUED. Lowell Schrupp made a motion recommending the City Council review the Pledge Agreements between the NRA and the City Council is preparation of relinquishing said agreements by resolution adoption. The motion was seconded by Everette Ellison and with no further discussion passed 4-0. The Administrator further advised the HRA members that Springsted Inc. did not advise refunding the current tax increment bonds because in their opinion it did not satlsfythe statutory requirement of realizing a 3% present value level of savings. Also, the $260,000 bond issuance for the elderly housing project may be a higher interest rate than originally anticipated because of increase of interest rates and the potential of this not being a tax-exempt bond. Holfsteller will be consulting Jerry Shannon on this matter. 6. CONSIDERATION OF A NOTICE OF THE CITY'S JOINT GOVERNMENTAL UNITS MEETING. Koropchak noted to the HRA members that the date for the joint meeting is Monday, June 5, 1989 at the new Fire Hall. Chairperson Larson informed the members of last years meeting being very positive and fruitful, and encouraged all members to attend this meeting. An agenda will be prepared by Jeff O'Neill with the meeting time and mailed in advance to all involved individuals. 7. CONSIDERATION OF AN UPDATE OF HRA PROJECTS. TIP District No. 1-8 - the Development Agreement between the HRA and Northern States Power Company is being handled by Pat Polstring. NSP'a original construction bids came in over budget, they will submit for second bids, however, have indicated a June beginning construction date. TIP District No. 1-2 - the Development Agreement between the HRA and Broadway Square Limited Partnership (Draft 01) was completed and the developer not in agreement to provide 1) a Tax Incremont Guarantee, 2) Letter of Credit, and 3) state the Authority will turn over the site to the Redevelopor in a roady-to-build condition. City Staff recommended to the HRA that the development agreement include above named 1 and 2 items because those protect the HRA or City since the district's bond issuance debt retirement to projected tax Increment is very tight and because the first two projects (Metcalf and Larson Office Complex and the River Parkview Apartment have no development agreement or assessment agreements) which HRA Minutes — 5/4/89 Page 4 7. CONTINUED. means the HRA has no guaranteed amounts to retire the debt service or any assigned minimum market values at this time on any of the three projects developed by these redevelopers. The River Parkview market value dropped from $920,000 in 1987 to $760,400 in 1988 (payable 1989). Taxes payable 1989 for the Office Complex is $6,711 (TI 45,599) and for the River Parkview is 416,504 (TI 412,514). Koropchak reported she had contacted Doug Gruber, County Assessor, who would agree on an estimated minimum market value for the proposed 28 -unit elderly project at 4800,000 (4100,000 land and 4700,000 building) which would generate an approxiate tax increment of 414,841 - This in comparison of the District's total annual debt retirement of 435,193.50 (Securities 44,285 and 430,193.50 for the $260,000 bond issuance at 9.252 over 18 years). And the City Staff recommended the HRA not guarantee a ready -to -build condition upon conveyance of the property because the City has no idea of the property's past historical structures and uses. The HRA general consensus was that the redevelopers need 1) not provide a Tax Increment Guarantee or Letter of Credit, 2) the redeveloper will agree to a minimum market value of 4800,000 for the completed 28 -unit elderly project, and 3) the HRA will not guarantee the property in a ready - to -build condition upon conveyance. The HRA's rationale for this decision was 1) this redevelopment project has been a long time goal, 2) the redevelopment project eliminates blight, 3) the HRA approached the redevelopers with the idea or concept, 4) the redevelopers have completed other city projects and other PmHA projects, and 5) this HRA feels they are not responsible for the lack of previous development agreements and assessment agreements. however, does apprec lata City Staff concerns. UNDISCLOSED COMPANY - BDS, Inc. has prepared and Koropchak delivered a financial proposal inclusive of TIF to this company. POTENTIAL SPEC BUILDING - BDS, Inc and Koropchak are working with a company and developers for a possible leased spec building. A financial proposal inclusive of TIF will be prepared. B. CONSIDERATION TO SET UP AN ESCROW ACCOUNT FOR RESTORATION OF TOPEL'S WESTERLY WALL. The party wall agreement between the Topols and the HRA has been eltinquished with a ton foot casement granted to Topele, Koropchak proceeded to open an interest bearing escrow account at Wright County State Bank. Bank requirements are a needed resolution indicating the signatures required for tranaction. Lowell Schrupp made a oration to adopt the bank resolution electing Fred E. Topol and Oliva M. Korope hat as determined to be qualified to order payment of money and withdraw funds from this organisations account. The motio2i was seconded by Tom St. Hilaire and with no further discussion passed 4-0. HRA Minutes - 5i4/89 Page 5 9. OTRER BUSINESS. Koropchak asked for the HRA opinion of interest to contact the Bridgewater Telephone Company who plans to construct a warehouse building on their West County Road 39 property across from the City Maintenance Building. .The property is zoned PZ -H. Building Offical Cary Anderson advised Koropchak of the plans. Idea would be to use TIP to equalize the land market value in property exchanges thereby encouraging a utility warehouse in the proper zone. I-1 or I-2. The HRA advised Koropchak to follow through with the idea. The HRA thanked Rick Wolfsteller for his District financial report. 10. ADJOURNMENT. Everette Ellison made a motion to adjourn the HRA meeting and Lowell Schrupp seconded the motion, the HRA meeting adjourned. �►:� �cGati o � �Q,.9�.. 011ie Koropchak HRA Executive Secretary _ p�i.n���G:f F.�•s.<(d.r •i �.... � I ..,� i I — i - -- --j-- I !3i -j>; :�s►r� �;ut! L _�_I. _� -I - r li u 7. VV - rg - -- - -- --Diet s = Lr....-rf-_.:,�..r .' ��ff --- - - - - �r�r l -_ L..•dr srr_�d - - - - I ,F--h c 10_T_IIC e�..i_+r!C.-J-f . I _:_a.t ��. (G�,.:.f) ,_..Df _ � _.� _ .rg'lP� ..j fgaxi�I .._ I ro w s/i•c 3r/:i nj _ _f /�:jrn. nr- s.<...-%_IIII0 v.v .sfvcr I I:s?s:y _T- �:a••C_J.c_r� --- _•-- -_ � i�r'1 'J.S:SSy% uro-,��, I_ -. � � zY tvf�. 'Jrr_r.�`i_ Sr 7l; i�Y.r ,�. _- .1- � lr tcs i t-I_ 17 �. .-- ------ --- - --- r---�--�--IT-r I 17I _-- fry di. ••%/f1 --_-- } 117!1 � iVprl jrj:3+7-i i ..-. I-,!aie�P 6GPrL PO•rli _i'7(P,.:' '� + 1 �'v97+s m' F. r.. (�. c .,.-► r) y.+ �u v� I • - 1 } - I- l - I I Za V (asi� ;'� 5), ir, I Rte• �....I ,I I I -jwl _� ar, fq r, /fir �..V Ad,-Ar�l•r ^/19 II 17o_,?fj 7.vJ/ �, +s I r7T�✓ S¢ec7 Jc 1r1 I Ha.7„r I 1 l - a pwaw. %yL 9/Io n �A:rarr7t t Tr. x Pl•d.♦ Le ....., \ e Ur. yt I� : r. t / (I,or> `�I >IC�y>i '�•fi / Y i 9?lip 7' J aro �- le•1r..,� I.-'y -� i:..„... /,.• ow c.ty.o,.,t� , ( � 1 1 , I h , I � I ' 3. CONSIDERATION TO REVIEW AND ACCEPT THE TAX INCREMENT FINANCE APPLICATION. A. REFERENCE AND BACKGROUND. Please review the enclosed TIF application as prepared by Business Development Services, Inc. and be prepared to comment at the meeting. 4. CONSIDERATION OF HRA ALTERNATIVES FOR TIF DISTRICT NO. 1-8 (NORTHERN STATES POWER COMPANY). A. REFERENCE AND BACKGROUND. A signed contract between the City of Monticello and Northern States Power Company dated December 20, 1988 outlined the transfer of a portion of Lot 4, Block 3, Oakwood Industrial Park, from the City of Monticello to Northern States Power and outlined the terms and conditions associated with the City purchase of the existing NSP Service Center on West County Road 39 for use by the City's Maintenance Department. TIF District No. 1-8 was certified January 23, 1989 thereafter has the Development Agreement between the HRA and NSP been drafted. At a recent meeting between Jerry Zimmer of NSP, St. Cloud Office; Rick Wolfsteller; and myself did Mr. Zimmer explain that construction bide for the proposed 5,544 aq ft metal (brick trim) office/ warehouse facility had gone out twice and in both cases the lowest bids came in 1002 over NSP's budget ($296,000). In comparison, the estimated minimum market value used for TIF projections was $100,000 + leas. Mr. Zimmer outlined NSP's three choices: 1) rebid for the third time, 2) delay the project until 1990, or 3) find a developer to construct the facility and NSP lease with option to purchase. Mr. Zimmer also advised us that the vice president suggested to delay the project this year. The meeting ended with Mr. Zimmer to contact private developers for potential build/leaso and Koropchak would chock out the probability of the NRA to be the developer and lease with an option to buy. Increment would be generated if the HRA lensed the property to a private company. Mr. Pat Pelstring will explain our alternatives at the meeting. Since the district has been certified and with the assumption construction would not be until 1990 the projects generated tax increment is shortened to seven years. If you remember there was a shortage of tax increment in the original TIF Plan which generated increment for eight years, althorough the HRA could suggest filling the gap by raising the cost of the land. CITY OF MONTICELLO APPLICATION FOR TAX INCREMENT FINANCING I. APPLICANT (a) Business name, address, telephone number: (b) Business form (corporation, partnership, sole proprietorship, etc.), state of incorporation or organization and date of formation: (c) If applicant is corporation, state officers, directors, stockholders holding more than 5 percent of the stock of corporation (state name, address and relationship to applicant): (If Corporation is not formed, set forth as much as possible concerning potential officers, e directors, stockholders.] (d) If applicant is general partnership state general partners and if limited partnership state general partners and limited partners with more than 5 percent interest in the limited partnership: (If partnership is not formed set forth as much ns possible concerning potential partners.) (o) Name, address and telephone number of Applicant's legal counsel and accountant: (f) Brief description of nature of business, principal products, etc.: (g) Project employment: Full Time Part Time 2. Projected number of employees due to new project (in two years): a. Full Time b. Part time II. PROJECT (a) Location (state street address and attach the legal description of project site): (b) Present ownership of project site. If project site is not currently owned by applicant, describe arrangements by which applicant intends Lo acquire or use site: (c) Describe project: If project is a building or addition to building, specify number of stories, square footage by use, type of construction, acreage of land, related parking facilities, etc. If project includes equipment, describe equipment. If mixed land use, describo project's physical dimensions by type of land use. ` (d) Zoning/Compliance to City's Comprehensive Plan: I (1) Preliminary building and site plans must be submitted to Gary Anderson, Monticello Building Official. For HRA review, they must be submitted prior to setting a public hearing date on the sale of public lands. (2) What is the zoning status of project site? (3) Is zoning status appropriate for the intended use! (4) Will rezoning, zoning variance, or conditional use permit be sought in connection with project^ (5) Is the property properly subdivided for the intended use? (6) Has site plan approval been obtained for this project. If so, on what date by Planning Commission By Council (7) Final building and site plans including grading, site drainage, landscnping and parking plans must be submitted to the City prior to the public hearing on the Tax Increment Financing. (o) Estimated project related costs: (1) Land acquisition: f (2) Site development: t (3) Building cost: f (4) Equipment: S (51 Architcctural and engineering fees: S (6) Legal fees:. S (7) Bond discount, fees to underwriter and brokerage fees: $ (8) Interest during construction: S (9) Offsite development cost: $ (10) Initial bond reserve fund: S (11) Contingencies: $ 112) Other (please specify): $ Total S (f) Source of financing: (1) Industrial Revenue Bonds: S (2) Tax Increment Bonds = (3) Equity S (4) Bank loan: S (5) Other (list): $ (g) Status of above financing: (h) Please attach company financial statements as follows: (1) Balance Sheets (three years Prior). (2) Profit and Loss Statements (three years prior). (3) Either projections (three years), or business plan. (i) Will project be occupied by applicant after completion? If not, state name of future leaaces, and status of 4 commitments or lease agreements: i y (j) Namcs and addresses of architect, engineer, and general contractor for project: (k► Current real estate taxes assessed on project site, and estimated real estate taxes on project site upon completion of project: (1) Project construction schedule (If project is to be completed in phases, indicate by construction year percentage of total project completion.): (1) Construction start date ? (2) Construction completion date ? If phased project Year % Complete Yenr % Complete III. TAX INCREMENT BOND ISSUE (a) Amount of project expenses requested by applicant to be paid from proceeds of the tax increment bond issue: (b) Proposed date that applicant expects tax increment bond proceeds to be available to pay project expenses: IV. MISCELLANEOUS (a) Detail the status of any previous or current requests which applicant, its principals or affiliates have made to the City or to other municipalities for tax increment financing: I, (b) If tax increment bonds issued for applicant by other municipalities list issuer, bond title, date of bonds, type of project, total project costs, etc.: (c) Has applicant ever been in bankruptcy? If yes, describe circumstances: (d) Has applicant ever been convicted of a felony? If yes, describe conviction and sentence: (e) Has applicant ever defaulted on any bond or mortgage commitment? (f) Will any public official of the City, either directly or indirectly, benefit by the issuance of the City's tax increment revenue bonds for this project within the meaning of Minnesota Statutes, Sections 412.311 or 471.87? If so, specify: (g) The applicant herewith submits a $2,000.00 refundable deposit to the City. The full fee will be refunded if the Development Agreement in executed and the land is acquired. No fee will be refunded if the Development Agreement is not executed and the land is not acquired. The undersigned, (a) (the) of applicant, hereby represents and warrants to the City that (he) (she) has carefully reviewed this application, and that the statements and information contained herein and submitted herewith are accurate and complete to the best of the Undersign's knowledge and belief. Dated: (Applicant) By: (Signature) Its: The City reserves the right to require additional information and supporting data from the applicant after the filing of this application. r, „ May 26, 1989 8wlrma Devolopm�t SuNaos die. Ms. 011ie Koropchak Economic Development Director City of Monticello P. O. Box 83 A Monticello, MN 55362• Dear 011ie: I wanted to respond to two issues which we discussed earlier this week. First, the city's Housing and Redevelopment Authority has the ability to acquire land and develop buildings for use by a private industry. The HRA, in turn could lease that building to the business, such as the purposed NSP project. The advantages for the HRA and NSP are basically that the HRH's overall return in the project would be much less than a private developer. Typically a lease would be structured by a private developer at 120 percent of the anticipated debt services costs. For instance if the annual financing coats for a project were $10,000 a year, the lease would most likely be structured at $12,0001 a thousand dollars per month). The addi tional $2,000 would be positive cash flow to be retained by the developer. The HRA would not need as large of an override, although some level of additional lease payment over and above debt service sh3uld be structured. In addition, when the property's sold by the private developer, the developer seeks to recover their initial equity return and additional property appreciation. I would suggest the HRA would be in a position such that they would only 'iave to recover their initial equity investment. There are several considerations which the HRA should understand prior to commencing a project of this type. For your review please consider the following: I) Project, since it would constructed by a public entity, it would be subject to public bidding. 2) The HRA would be responsible for some level of initial equity investment in the project. I would anticipate a minimum 10 percent, a more likely figure is 20 to 25 percent. These funds could be provided by Tax Increment Financing, however. GM fPpIN06R0011 WA a SM M • MINMEAOM MN UM 0 PIIONM 61WYBMISI Ms. 011ie Koropchak May 26, 1989 Page 2 3) If the building is utilized fur private purposes property taxes would be due and payable. This would make the use of Tax Increment Financing appropriate for the project. 4) HRA would end up issuing a bond to cover the balance of the financing costs. This bond would probably be issued by the HRA and secured by a mortgage on the project. In addition NSP would be required to sign a minimum of a ten year lease to assure appropriate re -payment. NSP could be given a series of options to acquire the building in the interim. Our firm is very comfortable with this process and we would be willing to provide additional guidance, should the HRA seek to support this project by constructing the building. I also wanted to provide additional information on the "pay-as- you-go" process. Pay-as-you-go funding for tax increment is becoming much more common. This process greatly reduces the city's exposure as a bond does not have to be issued. The city assistance is only provided to the developer after they pay their annual property taxes. In addition the traditional "soft" costs associated with the bond issue would not necessarily be applicable. I have included a summary of the pay-as-you-go process and advantages prepared by Publicorp Inc. I can review this information in greater detail with you, should you desire. I trust that this memo addresses the two issues we discussed. Feel free to contact me should ;you request additional information. Sincerely, BUSINESS DEVELOPMENT SERVICES INC. a&ix W. 62Z,& - Patrick W. Pelstrinn Vice President PWP/Je Enclosure cc: J. O'Neil R. Wolfseller 5. CONSIDERATION TO REVIEW DAVID FICEK'S REDEVELOPMENT HOUSING PROJECT PLAN AND FINANCIAL PROPOSAL. A. REFERENCE AND BACKGROUND. At the last HRA meeting the boara reviewed Hr. Lavin Ficek'n preliminary proposal for elderly housing redevelopment on the recommended site locations. The HRA recommended fine tuning the proposal to incorporate 1) the developer shall not have three years exclusive right to all property in the suggested redevelopment district(s), 2) the developer shall not be deeded the parcels for $1.00, and 3) suggested Area A. proposed 20 single levels towns and 3 houses was too many units. Mr. Ficek, Pat Pelstring, Jeff O'Neill, and myself met on May 31st to revaluate Mr. Ficek's proposal, to relate the HRA recommendations, and to continue the process for redevelopment. Mr. Ficek's had no objections to the HRA's recommendations and plans were outlined as follows: 1) 1t was proposed that the developer negotiate and acquire the properties (cost effective), 2) redevelopment project O1 will concentrate on a portion of site location Area A., 3) the developer's guideline density is 7 units per acre (units of four), 4) BDS, Inc. will prepared redevelopment district and/or economic district in accordance with statutory requirements, and 5) BDS, Inc. will prepare two alternative financial feasibility studies for the HRA meeting. Please remember the importance of confidentiality. 6. CONSIDERATION TO REVIEW LEONARD BABINSKI AND/OR DONALD BABINSKI'S REDEVELOPMENT HOUSING PROJECT PLAN PROPOSAL. A. REFERENCE AND BACKGOUND. Pat Palstring. Jeff O'Neill, and myself mat with Leonard Babinski on May 26th. Mr. Babinski was informed of the HRA's policies and the HRA's quality elderly townhouse concept; and was given a tour of the HRA's recommended site locations. Mr. Babinaki was somewhat reluctant of the redevelopment project and expressed the need for a market feasibility study. The following preliminary guidelines were set: 1) Market feosibility study - Developer. 2) Select site location interest - Developer. 3) Preliminary proposal - Developer. 4) Outlined preliminary financial feasibility study - BDS.inc. 5) Dotormino HRA's participation. Mr. Leonard Babinaki will contact the Clty staff or Pat Poletring. 6. CONTINUED. Pat Pelstring, Jeff O'Neill, and myself met with Mr. Donald Babinski and his associate, Mr. Frank Kraemer on May 31st. The same background was given as was to Mr. Leonard Babinski ".darer, Donald .ac highly interested in the red?vetorea"r project. Mr. Pelstring advised city staff prior to the meeting of Mr. Donald Babinski's standard upscale apartments, his very cooperative business attitude, and a list of his invested developments in Minnesota, South Dakota, and Florida. Mr. Babinski's market niche is upscaled rental apartment units, generally for cost effective purposes are of 40 unite. After viewing the recommended site location Mr. Babinski earmarked his number one selection which is non-competitive with Mr. Ficeks. Mr. Babinski requested from city staff a list of unit rental cost in Monticello. Mr. Babinski will prepare a proposal for the HBA.