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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 -