HRA Agenda Packet 12-07-1983HRA AGENDA
Wednesday, December 7, 1983
Monticello City Hall - 7:00 P.N.
Chairperson: Dr. Philip White
Members: Don Cochran, Jack Reeve, Vic Vokaty, Bud Schrupp.
1. Call to Order.
2. Approval of Minutes of the regular meeting of the HRA held
October 5, 1983.
Old Business
3. Consideration of Entering a Joint Powers Agreement for Tax
Exempt Mortgage Bond Financing.
4. Fulfillment Systems, Inc. - Urban Development Action Grant
Progress.
New Business
5. Consideration of Authority Pursuing other Directions.
6. Consideration of Submitting a List of Names for Dr. White's Replacement.
7. Consideration of Assuming Mortgage.
S. Oonsidoration of Reviewing the Procedural Rules Governing HRA
Business.
9. Consideration of Adopting a Resolution for Entering into a
Pledge Agreement.
10. Informational Item - Possible Now Business.
11. Other Business.
12. Adjournment.
MINUTES
HOUSING 6 REDEVELOPMENT AUTHORITY MEETING
October 5, 1983 - 7:00 P.M.
The regularly scheduled meeting of the Monticello Housing s Redevelopment
Authority was duly held at 7:00 P.M. in the City Hall Council Chambers on
Wednesday, October 5, 1983. Members present were Chairperson White, Schrupp,
Vokaty, and Cochran. Members not present were Reeve. Staff present were
Eidem and Polvit.
The meeting was called to order by Chairperson White.
1. Motion by Schrupp, seconded by Vokaty to approve the minutes of September
7th, and 13th meetings. Carried unanimously.
2. Eidem asked the Authority to postpone item #3 until last in order to
gather additional materials for presentation. Granted.
3. CONSIDERATION OF STUART HOGLUNOS T.I.F. PROPOSAL: Polvit briefly described
Mr. Hoglunds proposal to the Authority. Pelvit went through the objectives
of the CentralMonticello Redevelopment Plan stating that only two of the
City's main objectives were met, those being, 1) Encouraging redevelopment
of the area in a manner that will increase the financial base of the
City and improve the source of public revenue; and 2) To provide increased
employment opportunities through construction jobs and permanent businesses
located in the area.
Chairperson White was quite concerned with the price of the land. He
asked what other property in the general area was selling for. Polvit gave
prices of acreage in the area as approximately $13,000 per acre. Hoglund's
property is approximately 2S acres. White thought $75 - $100,000 was un-
realistic for this proposal. A second concern of the Authority was the
LIRA buying and selling of the prupetl.y from the name person. T)w AuthuriLy
questioned the legality of being eligible to got T.I.F. if you own the
property. Polvit reminded the Authority that Mr. Hoglund would sell the
land to the HRA and the HRA would In turn sell the land (at a very re-
duced rate) to a corporation, which Mr. Hoglund may be a party to.
After brief discussion on Mr. Hoglunds interests in thio proposal, the
Authority, in Chairperson White'u opinion, should not W in favor of Hoylund'n
T.I.F. Proposal for the following roaoonea 1) The praco of the land was
out of lino with other parcels in the areal 2) Buying and selling to the same
parson was not in the boat interests of the Authoritvp and 3) The proposal
does not moot enough criteria of the Central Monticello Redevelopment Plan
to warrant approval. Mution was made by Schrupp and seconded by Vokaty to
not approve Mr. Hoglunds T.I.F. Proposal. Passed 4-0.
4. Chairman White reviewed the numbers of the Fulfillment Syntemo, Inc. (FSI)
Tax Increment Financing Plan. The Authority thought the figures looked
very good and were happy to sea that a great deal of effort will finally
bacemn reality. The UDAG program was also discu000d in relation to the
FST overall plan. white nuked about the $10,400 for expenuen. Eidom
HRA Minutes - 10/5/83
explained that this covered staff expenses, as well as expenses pertaining to
the project itself. The 2%% or $2,500 amount has not been assessed against
FSI, but will when the UDAG grant is given final approval.
The Authority was curious as to who would back the bonds for the $475,000.
Eidem indicated that there were three banks who would buy the Tax Exempt
Mortgage Revenue Bonds.
Upon hearing the above information, motion was made by Schrupp and seconded
by Vokaty to approve the T.I.F. Economic Development Plan for FSI on the
presumption that the UDAG would be approved.Unanimwusly carried 4-0.
5. Barbara Portwood, a representative of Holmes and Graven, addressed the Author-
ity on Tax Exempt Mortgage Revenue Bond Financing. She explained how Delano
became involved in Tax Exempt Revenue Bond Financing. She explained how
Holmes and Graven works with Miller c Schroeder and the City.
Portwood explained that Tax Exempt Mortgage is a large pool of money at
a low interest rate to be distributed to people with low a moderate incomes.
If a City gets involved, it is set up by a trustee and they administer the
program along with the help of lending institutions who do the screening, etc.
Trustees are professionals such as Banco,etc.
Portwood went on to say that the program is designed to attract low income
first-time homebuyers and that 90% of monies will be for first-time buyers.
Once a city or cities apply jointly for funds they compote for the money.
Two things datermino if you get the money. They are, 1) How much money is
distributed to low c moderate income families during the first 6 months, and
2) How much money is contributed up front by the City, Developers, or Lenders?
$10,000,000 is considered to be a minimum Lanus. Cities with a higher cont-
ribution will have a better chance of receiving funds. In the past, cities
have contributed approximately 4%, ($400,000) allowing them to receive funds.
If thin were to hold true for our co- venture, each city would have to contribute
approximately $100,000. Thin could be contributed by lenders and developers,
as they stand to gain the most from the program .
Barbara explained that the contribution money covers expenses associated with
bonds,etc.,and to offset the interest rates during the early years. Thin holpe
the younger people have more attractive payments in the early years.
She went on to say that Moadw Crake would be eligible for this typo of funding
along with any undeveloped properties in the Corporate limits.
The next atop is to have an informational meeting with lenders, developers, City
Council, and interested people to ase if there is enough Internet. Cochran
suggested that the HRA inform the City Council that there will be an informational
mooting, invito them and otherL.. Representatives from Holmes 6 Graven and Miller
c Schroeder will also attend. The meeting wan act for Tuesday October 18th, 1981,
at 10,00 A.M.
- 2 -
C
HRA Minutes - 10/5/83
A motion to pursue the feasibility of entering a Joint Venture on Tax Exempt
Mortgage Revenue Bond Financing was made by Schrupp and seconded by Cochran.
Motion was carried unanimously 4-0.
There being no further business, the meeting adjourned.
Allen L. Pelvit
Director of Economic Development
- 3
(D
HRA Agenda - 12/7/83
3. Consideration of Enterinq a Joint Powers Agrcement for Tax
Exempt Mortqaqe Bond Financinq. (A.P.)
A. REFERENCE AND BACKGROUND,
Ms. Barbara Portwood, Holmes a Graven, attended a meeting briefly
explaining the mechanics of tax exempt mortgage bond financing.
She also described the possibility of a joint powers agreement
with several area communities.
The Authority, after hearing Ms. Portwood, decided to have an
informational meeting seeking the interest of area lenders,
realtora, and developers. The meeting was scheduled for October 18,
1983, at LO,OO a.m., in Monticello City Hall Council Chamlx:rs.
Ms. Andrea LuBov, Financial Consultant with Miller and Schroeder
Municipalities, Inc., was also invited to help explain the tax
exempt mortgage bond financing.
On October 7, 1983, Allen Pelvit sent letters to area lenders,
realtora, and developers informing them of the meeting of October 18,
1983. An ad was also placed in the Monticello Times. Members of
the HRA and City Council were invited also.
Seventeen individuals representing area lenders, realtora, and
developers attended the informational mooting. Ms. Portwood and
Ms. Lubov explained tax exempt mortgage bond financing and answered
questions that followed.
Ono week following the informational meeting Allen Polvit contacted
those attending the meeting taking interest in such a venture.
After finding negative response from those in attendance, the
City of Monticello withdrew its support.
Mother letter was mailed November 4, 1983, stating the lack of
interest and decision to withdraw Monticello from any further
consideration of tax exempt mortgage bond financing.
B. ALTERNATIVE ACTIONS,
This is an informational report. Therefore, no action must be
taken.
D. SUPPORTING DATA,
A list of those individuals attending the informational meeting
and whom they roprocentodi the letter inviting intorooted parties
to the mooting and the Monticello Times ad aro enclosed, as is the
tax exempt mortgage letter informing all parties of Monticello's
withdrawal of support.
NAME
Elraine Brennan
Linda M. Mielke
Jerry Kral
Ed DeMars
Jack Maxwell
Lowell Schrupp
Vic Vokaty
Dennis Suedbeck
Larry Carter
Lori Vogt
Jean Brennan
Mary Knosalla
Dan Reed
Ralph Munsterteiger
Bob Bemboom
r
Ken Maus
Cindy Hardy
Tom Eidem
Rick Wolfstollor
Allen Polvit
C
ADDRESS
Route 4, Box 82, Maple Lake
101 E. 3rd, Box 546, Monticello
150 Powell Circle E., Big Lake
11624 80th St. HE, Albertville
101 W. Broadway, Monticello
155 W. Broadway, Monticello
825 W. River St., Monticello
Monticello
Maple Lake
Big Lake
Route 2, Box 82, Maple Lake
Route 2, Box 235, Buffalo
116 Marvin Elwood Rd.,
Monticello
230 W. Broadway, Monticello
3030 Harbor Ln. 0131, Plymouth
Box 248, Monticello
230 Aqua Drive, Rockford
Monticello
Monticello
St. Cloud
Informational Meeting - October 18, 1983 - 1Ot00 A.M.
Barbara Portwood - Holmes G Graven
Andrea Lubov - Miller Schroeder
REPRESENTING
Realty World Maxwell
Security Federal
Savings 6 Loan
Kral Builders
Realty World Maxwell
Realty World Maxwell
HRA Board Member
HRA Board Member
Wright County
State Bank
Realty World Maxwell
Realty World Maxwell
Realty World Maxwell
Realty World Maxwell
Wolters Construction, Inc.
Realty Station
Ultra Homes
City Council
Realty World Maxwell
City Staff
City Staff
City Staff
TMplw,r M-2711
25555 East Broadwav
Route 4, Box 83A
MONTICELLO, MN 55382
October 7, 1983
To wham it may concern :
M11- L-1 333 5 /;-
On October S, 1983, the Housing 6 Redevelopment Authority listened to
Barbara Portwood, a representative of Holmes c Graven. She explained
the benefits and regulations of Tax Exempt Mortgage Revenue Bond Financing
for single family housing to the H.R.A..
The City of Monticello is considering entering into a Joint Powers Agree-
ment with Delano, Buffalo, and Rockford. The four cities would apply for
a total of $10,000.000 in Tax Exempt Mortgage Revenue Bonds that would be
split between the cities.
+ las would like to have you and your representatives attend a special infor-
mational coating. The purpose of the seating will be to allow you to become
familiar with Tax ft t Mortgage Rsvanus Band Financing and its benefits
to you as fenders and Developers.
Representatives of Holmes c Graven (Mand Councel) and Miller c Schroeder
(Bond Underwriters) will be present to answer Questions you may have.
The casting will be hold in the Monticello City Hall Council Chambers, on
Tuesday. October 113, 1963, at 10100 A.M.. I will be calling you prior
to the meeting to inquire about your attendance.
C
Re epOc ully,
%.n L. Polvit
Director of Economic Development
ALP/ked
W.v&. to 711..&A ... gilt
Inp�snd no in in* L.uunl, at .au{yu W,u
v Ouenm t5f % of Nt %1 of section •I F',
t t tl, Wppe Tw•ntyyevn 1271. In the Vetpe
,by to the orWel plat of Townsite of Howard
op y h•reDY wnvayed: st a point : t :11. �.:•. „t,..
f•%Nosh el the intm•/e n blithe North
1s4 Sitat; thence North on eek West time
or =themust to tNorm Wu of said Mary
.• est tine of Doodse9 Street; thence East
o the U.S. Gove.nmant Survey thereof.
Monticello. east on Co, Rd. 39 (River Rd.)
b, audllor+ on the 9th day of becember, 1983.
n the Wright County
approx. 1 mile on route to sign.
'
U
3fl�ios Cont moues ,n the
sY drs debt tlnn escurad DY maid mortpeQ• and
f A mlo-- allowed by lain. The lime allowed
,
astral representatives or assigns Is six tel month
.Jl
yAf1p GILL COMPANY. Ny, Auipnee of Mortpeas•
The Stress of Guilt
Guilt is powerful in stifling and draining much of our energies.
�1ae31
It also controls some of us and directs our very lives. Some
2.
people control others with guilt alone. Know anyone like that?
AolreAoe
Some guilt is good and healthy; some guilt is sick and
UFJ SALE
dangerous. What do you do when you've "gotta guilt?"
red in the `°''°'tion' of that Certain mertoaae
Who's your judge? For more information, call 295-2945, ext.
WiPelmina L. Mundt, a unate person, es mcn-
,nooanlsed end oxleslno tinder the lsw. or tM
281. Sponsored by the Monticello -Big Lake Community
„n. office of the County Recon. in and fon
h. 23nd der of May, 1979 at 1 p.m and -as'
Hospital District. Please pre -register through the Monticello
291,r Document NumMr 337813, heveta an
Community School, 295.2915 or pay at the door.
111.so0) Donate, which hortative via.extend.
180, rscordmd May 20. 1980 at 1 o'clock p.m. . .
Thursday. Oct. 21. 7-9 p.m., 1 Session.
nide of Monomers dated May 13,1991, reeo.A-
Mondcailo-Big Lake Community Hospital Meeting Room
e2.t3. k° o3atiesnell, M«Extentsion oltaMort.,
Cost: 86.00 per family.
,mututed to recovar tits dem sec re0 by said
Speaker: Chaplain Richard ErlCkson
s en said monQQoars Lite mum of Nine Thousand
19.615.601 Bosara. YrckrOkq Merest, eapwrss
s "Wily to date hereel.
IN`.e6. vndluy dt. 10rtpaae and
, Subdivision
7.20• Sub° ort 9, wa shell by ead
ATT E N T I O N
I inane° mmtpaaor n her tdaelpnsted adMrsea.
9
• i �a `d
Builders, Contractors
Owner ON Lots 1 and 2. a0 In Section
rut1Vhighways and ae.ernsintm olfscord.
and Lenders
i,c Auct ion on the 10th day of Omoember, 1983
An information meeting will be held on Tuesday,
,it mouse Inthe Clty of Buffalo, n the County
h.nseCur.dbyemdmortgage w,..w,.m,.a.
Oct. 19, 1983 at 10 a.m., in the Monticello City
AMI to led-Ptidnwithin 12—the flom
Hall Council Chambers. The Topic is Tax exempt
MortgatQa Revenue Bond Financing (single family
BUFFALO NATIONAL BANK
homes'• .
101 Soulh First Avenue
Bulleln. M,nnesel. 95313
Representatives from Holmes and Graven (Profes-
11131 MO11°.°..
sional Bond Consultants) and Miller & Schroeder
(Underwritersl will give presentation on Tax Exempt
Mortgage Revenue Bond Financing, with question
and answer period following.
C i
Pipelines...
make good neighbors
America has over 220,000 miles of
petroleum pipelines carrying crude oil
and products to refineries and
Mage terminals across the Unwed
States. Each day, more than 1.5
billion torvnwee of crude ad and
products more through this network.
These pipelines have a safety record
socond to none in the transportation
W-vtry, ... and we want you to help
90ulds on or a mist above the .
ground in die area of a pipeline.
a Flames originating from an
opening in the Around.
h you become aware of a plpelan i
lead ...
a LEAVE THE LEAK AREA
IMMEDIATELY.
e Avoid driving into vapor dads.
a Avoid d1ract cWtW with the
_ — anl�n 11.•dA•
To wham it may concern z
I'm sorry to say that there was not enough interest in the Tax
Exempt Mortgage Bond Financing Program to warrant any further
consideration on Monticello's part.
After contacting lenders and developers to get initial committments,
I found there wore none. Time was very short and a decision was made
based on the committment given.
If you are still interested in the program et a later date, you may
want to contact the Cities of Delano, Rockford, or Buffalo.
If I can be of any help answering Questions, please fool free to
call.
ape
Allen L. Pelvlt
Director of Economic Development
November 6, 1903
O
250 East Broadway a Rt. d, (fox 63A a Monticello, MN 55362
once d the
Pna,e isizi 2952/ 1 1
CM AOmv OWW
Meho 18121 333 5731
To wham it may concern z
I'm sorry to say that there was not enough interest in the Tax
Exempt Mortgage Bond Financing Program to warrant any further
consideration on Monticello's part.
After contacting lenders and developers to get initial committments,
I found there wore none. Time was very short and a decision was made
based on the committment given.
If you are still interested in the program et a later date, you may
want to contact the Cities of Delano, Rockford, or Buffalo.
If I can be of any help answering Questions, please fool free to
call.
ape
Allen L. Pelvlt
Director of Economic Development
November 6, 1903
O
250 East Broadway a Rt. d, (fox 63A a Monticello, MN 55362
HRA Agenda - 12/7/83
4. Fulfillment Systems, Inc., - Urban Development Action Grant
Progress. (A.P.)
A. REFERENCE AND BACKGROUND:
As you know, the U.D.A.G. for Fulfillment Systems, Inc., (FSI) was
locally recommended by the Minneapolis Regional H.U.D. Office for
approval and sent to Washington for review. As the review process
progressed in Washington, we were told that the project was good
and the U.D.A.G. looked very favorable for approval.
Virginia Holman, case worker in Washington, notified the City that
the U.D.A.G. had been killed by Secretary Samuel Pierce. We were
told there was $90 million in projects requested with only $60
million in funds. Secretary Pierce followed the rules precisely,
giving the following reason for declined A City in its last quarter
of eligibility and taken off the list of distressed cities will be
last to receive monies. Secretary Pierce did say that the project
did deserve merit and would be held over until January, 1984, when
the review process will commence again and be completed by January 31.
B. ALTERNATIVE ACTIONSd
1. Wait until Washington reviews the application again in January,
1984. If approved then proceed with assisting FSI's project.
+_ 2. If Washington disapproves the application, work with FSI in
finding alternative methods to bring their project to reality.
3. If Washington disapproves the application and no alternatives
can be worked out, abandon project all together.
C. STAFF RECOMMENDATION:
It is our hope and intent that Washington will approve FSI's application
for U.D.A.G. funds. At this point wo will have to wait and coo what
action Waohington will take.
D. SUPPORTING DATA:
Evidence of the action taken by Washington came by telophono
communication whereby Tan Eidem documented with notations.
- 2
HRA Agenda - 12/7/83
5. Consideration of Pursuing Other Directions. (A.P.)
A. REFERENCE AND BACKGROUND:
The Authority may want to consider more areae in which to become
involved. At this time the Monticello HRA is mainly involved
with economic development, especially industrial and commercial
development.
Possible areas to consider ares
- Elderly and family housing (Section 8)
- Community Development Funds
Section 8 Housing may be more familiar to you than Community
Development Funds. The Community Development Program is similar
to Urban Development Action Grants, though it is not as complex.
The Program is operated by the Minnesota Department of Energy,
Planning and Economic Development. Monies can be in amounts up
to $500,000 and can be used to assist housing starts, etc.
B. ALTERNATIVE ACTIONS:
1. Not pursue other areae for HRA involvement and concentrate
on activities now involved in.
2. Actively search out now areae of HRA interest and incorporate
into its activities.
C. STAFF RECOMMENDATIONS
Staff holda no definite recommendation but suggoote Authority
diocuos the p000ibilitiou available to them.
D. SUPPORTING DATAS
No data needed.
- 3 -
HRA Agenda - 12/7/83
V 6. Consideration of Submitting a List of Names for Dr. White's Replacement. (A.P.)
A. REFERENCE AND BACKGROUND,
Early in November Dr. Philip White informed me that he would be
resigning from the Authority at year end. He told me that his
intention was to only serve a one year term in order to help the
Authority get back on solid ground.
A little background will clarify the number of terms and their
length. In November of 1982, the City Council had appointed
individuals to fill vacancies of existing 5 -year terms. The
appointments and date of expirations are as followsi
Dr. Philip White 12/31/87
Jack Reeve 12/31/83
Bud Schrupp 12/31/84
Vic Vokaty 12/31/85
Don Cochran 12/31/86
These appointments are for five years and alternate so that one
term will expire each year.
Because of Dr. White's resignation, four years will remain on this
appointment, and the Authority should suggest a list of names of
individuals they would feel comfortable working with.
B. ALTERNATIVE ACTIONSs
1. Submit a list of individuals who would be compatible with
others on the Authority. Assuming Jack Reeve will servo
another 5-yoar term, only one vacancy need be filled.
2. If Jack Reeve does not serve another 5 -year term, a second
vacancy will exist and two appointments must be filled by
the Mayor.
C. STAFF RECOMMENDATION,
The staff recommends the Authority suggest several individuals they
would like to work with. The nominee, when appointed, would take
over Dr. White's appointment and serve the remaining four years.
The staff further suggests those individuals could bo contacted
between the December meeting and the January meeting. The Authority's
recommendation could then be given to the Mayor for action at the
January Council meeting.
D. SUPPORTING DATAa
Data supporting the above can be found in your 11/15/82 HRA minutes.
Also included is a copy of the City Council minutes of the 11/8/82
mooting.
- 4 -