HRA Agenda Packet 08-03-1983IN
HRA AGENDA
Wednesday, August 3, 1983
Monticello City Hall - 7:00 P.M.
Chairperson: Phil White.
Members: Don Cochran, Jack Reeve, Vic Vokaty, Bud Schrupp.
1. Call to Order.
2. Minutes of the July 13, and July 15, 1983 meetings.
Now Buoinese
3. Consideration of a Resolution Establishing an HRA Policy for
Setting an Administrative Poo for Tax Increment Financing
Projects.
6. Consideration of a Preliminary Proposal for Tax Increment
Pinancing - Developers, Metcalf and Larson.
5. Other Buoineso.
6. Adjournment.
r MINUTES
HOUSING 6 REDEVELOPRLNT AUTHORITY MEETING
July 13, 1983 - 7:OD P.M.
The regularly scheduled _meeting of the Monticello Housing 6 Redevelop-
ment Authority was duly held at 7:00 1'.M. on Wednesday, July 13, 1983 in
the City hall Chambers. Members present were Chairperson Philip Whit.•,
Don Cochran, Bud Schrupp, Vic Vokaty, and Jack Reeve.
The meeting was called to order by the chair.
The chair asked if the minutes of the b-1-83 and 6-22-83 meetings were
approved, etc;. Bud Schrupp Motioned that they be accepted. 2nd by Vic
Vokaty. Voted and approved.
Tom Eidem informed the Authority on the information he received in re-
gard to the Tax-increment-Financing/disposition of public lands. Eidem
received a bid from the Wright County Bank H 9Z for 911 yrs. plus addition-
al expenses of issuance and registration costs.. Ile went on to say that
the latest bid was at Oh% . There would also have to be Financial Consult-
ing fees added.
It was the opinion of Springstead that the net interest rate of 9.2%
( was a very good rate. Eidem asked Springstend to give him a reverse com-
puter run. The projected increment was $31,900. Eidem wants to know what
$$$ amount they would need from the developer upfront. lie also knows they
are going to charge the developer some $$$$ amount, any 2-10&, to go into
the Authorities kitty. Eider, aluo thought it a good idea to prepare a
bond opinion.
if the land is purchased, the bank will offer certification that they will
not be reoffered, and be exempt from registration.
It was brought up by the Authority that added expenses should be passed
on to the developer. Not knowing what to charge upfront, makes it hard to
place an amount on the load. Kidem was getting the figures together the
morning of 7-14 so that the above could be determined. It was suggested
by the chair to hold a special meeting soon to clear up this matter and
proceed to the next step. No objections were raised. The chair closed the.
Public Hearing because there was no public involvement.
Chairperson White approved of Hideo's proposal (to charge a flat fee of
$3500 just to walk in the door. This amount is not refundable. It would be
used to cover the cities fees.) Eidem went on to explain that the samu
amount of paperwork. number of meetings, etc. goes into every T.I. F. plan,
whether it be a large or small project such as the IXl project.
Cochran was concerned that the Aulhnrity wonldn't recover all the expensee
the city incurrn•d. He didn't want to take amn„y Irom the develup•r uunecesa-
arily, but feels a flat fee of $Y'1(W) would he adrQuato at the present time.
Eidem told the Authority that at present the city doesn't get any reim-
bursement for the activities thoy perform. lie vent on to auggest that the
IIRA bhould reimborbc th-, city for its setviven frnm the lint fee charged.
This would also help the city adhere to ita budget. Cochran agreed and
C
suggested that baerd on the 198} so rvicon performed, Eidem could used a per-
centage to give Chu IIW1 an idea of what amount Lite city will have for expensvn
in 1984.
Another discussion was held in regard to th.• amount to be charged the de-
veloper. Schrupp was in favor ul a V-1 or $25tH) am,mnl that could he .witched,
depending un if it were a large or a email project. This would help elimivat.•
the developer of a tcumller praje t 1'rmn being. harshly hurt in Lite 1wel,et book
for virtually Chi same sere u•en.
Cochran, Schrupp, and Eidem all agreeon the above type of arrangement, but
want Eidem to propose an amount. to use (up to IDX limit). !f they use this
method, they must then pay all of the cities expenses involved with HNA
activities. Chairperson White suggested playing around with different figurer
until one is found that would benefit all concerned. Eidem told the board that
this fee would be their only source of incuxn:. Cochran motioned that Eidem
prepare a resolution on administration fees to be built in costs. tad by
Reeve. Voted on. passed. Chairperson White motioned to adopt HNA Resolution
I1. Vokaty 2nd the motion. Voted on passed. (on file at Monticello City Hall).
Chairperson White suggested postponing items 4 566 until the special meeting.
It was suggested to have this an -.-ting at Perkins un 7-15-87 W 7:00 A.M. At that
time Bid= Will have the figures needed to proceed with the agreement. (.idem
proposed they settle the Development Document (a legal paper) at the reg-
ular meeting. Eidem discussed items 1-19. Jim Powers was told that if t1,.• mill
rate dropped and their was a difference, he would have to pay that amount to
the HRA. Ile was also told that if sold the property after 9 years and the new
owners default, the rights go with the property.
Eidem went through Cho Pinancu Ilan together with HRA and Powers. (1t.tinsA-2.)
Suction 1 will have to be changedhy 7-15. Item L (duration of district) was
changed so that it now covers. Chochran wanted to know what happens to either tit.-
hospital
hehospital or the school district when they loose the taxes duo them , when a T.1 F.
Planis implemented? Eidem explained that they would probably be better off after tit.-
redevelopment
t,eredevelopment than before, and after the incremunts are retired they will be getting
much higher taxes. It is to their benefit to go along with the plan. (on file at
Monticello City Holl).
Cochran asked Bidem about the IIIA being; audited. L•idem told him that they
would have to audite the Game as the city, by an outside indipendant auditing
firm. Chairperson White felt they should charge Powers $2500 indipendantly
of any other T.I.P. Plan in the future. Any remaining monies at the end of
the 8 year period could be used by the HRA.
Cochran suggested that Eidem bring a proposal of the 92 differential that Powers
will have to pay to the 7-15 meeting, no that they can set the acquisition fee.
No motion at this time. Bidem recomu-nded postponing the Resolution Adopting
the Plan until the 7-15 meeting. Chairperson White motioned that they postpone
it to the ?-l5 meeting. 2nd by Cochran. Voted on and passed.
There being no new business, Chairperson White adjourned the meeting.
Allen L. Pelvit
Director of Economic Development �[