HRA Agenda 01-06-1988•
AGENDA
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY MEETING
Wednesday, January 6, 1988 - 7:OOAM
Members: Chairperson Ken Maus, Vice Chairperson Lovell Schrupp,
Ben Smith, Al Larson, and Everette Ellison.
1. Call To Order.
2. Approval of the December 2, 1987 HRA Minutes.
3. Continuation of the Elderly Housing Concept.
4. Consideration of the Status of the IXI Properties.
5. Other Business.
6. Adjournment.
0
MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY ANNUAL MEETING
Wednesday, December 2, 1987 - 7:30 P.M.
City Hall
Members Present: Lowell Schrupp, Ken Maus, Ben Smith,
Al Larson, and Everette Ellison.
1. CALL TO ORDER.
Acting Chairperson Lowell Schrupp called the HRA Annual
meeting to order at 7:35 pm.
2. APPROVAL OF THE NOVEMBER 4 AND NOVEMBER 24, 1987 HRA MINUTES.
Ken Maus made a motion to approve the November 4th HRA
minutes, seconded by Ben Smith. Al Larson made a motion
to approve the November 24, 1987 HRA minutes, seconded by
Ken Maus, with no further discussion on either motion,
the motions passed 5-0.
CONSIDERATION TO ELECT HRA OFFICERS: CHAIRPERSON. VICE -
CHAIRPERSON, AND SECRETARY/TREASURER.
Ben Smith nominated Everette Ellison for chairmanship of
the HRA; however, Mr. Ellison declined. Ken Maus asked
Lowell Schrupp to continue as chairperson but Mr. Schrupp
said not this year. Al Larson nominated Ken Maus for
chairmanship stating Ken's experience of serving on the
HRA and the City Council a valuable plus. Mr. Maus
accepted the nomination with the understanding he may
step down from the office before his term expires in 1991.
Ben Smith seconded the motion, with no further discussion
the motion passed 4-1. Ken Maus abstained. Mr. Maus
then presiding over the HRA meeting expressed that the
City staff was good to work with. Nominations were
opened for Vice Chairperson, Ben Smith made a motion to
to nominate Lowell Schrupp, seconded by Everette Ellison.
Mr. Schrupp accepted the nomination for Vice Chairperson
and with no further discussion the motion passed 4-1,
Lowell Schrupp abstained. A motion was made by Everette
Ellison to waive the office of eacretary/treasurer,
seconded by Al Larson, the motion passed 5-0 without
further discussion.
4. CONSIDERATION TO SET HRA GOALS FOR 1988 and HRA LONG-RANGE
GOALS.
Chairperson Maus summarized 1987 by stating the long term
goal of acquisition and demolition of the Old Ford Garage
Building was completed by the HRA, consideration of the
Clifford Olson properties was addressed and the establishment
of Tax Increment Finance District 07 was completed. The
HRA members agreed the number one goal for 1988 was to
establish available higher quality of housing for the
elderly. The consensus by the HRA members was that
throe typos of elderly housing needs exist in Monticello.
HRA Minutes - 12/2/87
4. continued.
One, higher quality housing, townhouse concept owned by
individuals. Two, additional low to moderate income
housing. Third, total full service housing (before
nursing home.) The committee agreed the higher quality
housing should be located close to the downtown area,
they should consider optional locations (one being the
eastern lots of Block 33), they should check with other
communities on what has been successful, they should
check with developers and the HRA should serve as the
catalyst to finding a site. The HRA's second goal was
to continue researching the feasibility to acquire and
possible demolition of the Jones', O'Connor, and
Stelton's properties. The HRA has approved St. Cloud
Appraisal to appraise these parcels for future development.
Third, the HRA would like the status of the property
known as Block 3, Lot 5, Oakwood Industrial Park which
the HRA held an option agreement with IRI or the Johnson's
and the agreement made regarding the berm around the
IXI complex. Ben Smith will contact Alvin Sheldon of
Johnson. Sheldon and Sorensen Architects, Inc. to meet
with the HRA members on Tuesday, December 8, 1987,
either AM or PM.
The HRA members inquired about the possibility of the
City acquiring the Clifford Olson property by condemnation,
Chairperson Maus responded that condemnation procedures
are quite difficult.
Koropchak inquired about the HRA requesting the City
Council to levy one mill for HRA projects since the
Authority has no extra monies. Chairperson Maus answered
he believed the City Council would only respond favorably
if we could justify the need for the monies. A request
of such would need to be prepared for the 1989 Proposed
City Budget.
5. OTHER BUSINESS.
The committee inquired about the beginning demolition
date for the Old Ford Garage Building. Koropchak reported
that Mr. Spinler indicated that demolition would begin
that afternoon. All required paperwork had boon completed.
The Monticello Times and Larry Flake were both notified
of the planned demolition data.
6. ADJOURNMENT.
Everette Ellison made a motion to adjourn the HRA Annual
meeting, seconded by Al Larson with no further discussion
the motion passed 5-0. Meeting adjourned.
011ie Koropchak
HRA Executive Secretary
HRA Agenda - 1/6/88
3. CONTINUATION OF THE ELDERLY HOUSING CONCEPT.
A. REFERENCE AND BACKGROUND.
A brief summary of the informational meeting held
December B. 1987 between the HRA and Mr. Al Sheldon
is enclosed as supporting data. Last week Mr. Sheldon
stopped by my office with copies of a design plan which
was prepared as a result of that meeting. Also, Mr.
Dan Carlson of Foster, Franzen, and Carlson Agency, dropped
off some information he had received from a Mr. Bill
Haldy of Monticello. The information was on Realife
Cooperative of Mankota. Mr. Sheldon and myself are both
in the process of contacting Mr. Haldy. The HRA needs
to do some homework; I will work with Gary Anderson,
Zoning Administrator, and present additional site options
for the HRA meeting. I called 011ie Krahl, Monticello -
Big Lake Nursing Home, for her opinion of the HRA goal
of three types of elderly housing needs in Monticello.
She is in complete agreement with the HRA and would be
happy to work with us at any time. Also, the HRA needs
to address questions C, D, and E as summarized from the
meeting notes. Further information will be presented
at the HRA meeting.
4. CONSIDERATION OF THE STATUS OF THE IRI PROPERTIES.
A. REFERENCE AND BACKGROUND.
Tax Increment Finance District 01 was created in 1982
for Ron and Dee Johnson or IXI and included the acquisition
of Lot 7, Block 3, Oakwood Industrial Park by the HRA
with conveyance in two transactions: a) The East 180
feet of Lot 7 in 1982 and b) the remainder of said lot
1983-84. TIP District O1 was modified in April, 1984
to include only portion a) of the above. TIP District
/4 was created in 1984 for the HRA to acquire the Westerly
one/half of Lot 7 and the North 175 feet of the East one
half of Lot 7. HRA loan from the City for Lot 7 was
$73,501.67 ({58,600.00 plus $14,910.67 to pay off the
current assessments against the property. According
to City Council minutes of 8/22/83 a loan to the NRA
for $154,800.00 was approved for the purchase of Lots
5 and 6. (See Supporting Data). Lot 6 sold to Ron and
Dao Johnson on October 1984 for 115,500.00.
As for the written agreement to begin landscaping and
borming around lots 5 6 6 between the HRA and the
Johnson's. I cannot locate at this time. I have found
HRA minutes and City Council minutes which address the
issue.
The appraisal done for the Johnson's was appraised at
$1,000,000.00 for Lots 6 and 7 (land and buildings);
however, Mr. Bob Smith informed ma the mortgage they hold
HRA Agenda — 1/6/88
on the property is for the building and Lot 7 only.
Therefore, need to do more research about Lot 6.
Rick Wolfsteller provided these figures on Lot 5 which
was held in option. Initial investment was $77,400.00
plus total interest paid to date (12/31/87) of $26.345.70
for total of $103,745.70. Approximate lot size of 650 x
430 or 6.416 acres. This computes out for the HRA to
fully recover investment coat we Would have to ask for
$16,169.84 per acre. This total coat of $103.745.70
does not include the additional interest the HRA could
have collected on the interest the BRA has paid out.
Asking price by the Oakwood Industrial Park through
December 1987 was $13,000.00 per acre.
It is in the opinion of Rick Wolfateller and myself
that the matter should be reviewed by an attorney.
SUMMARY
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY INFORMATIONAL MEETING
WITH JOHNSON, SHELDON, AND SORENSEN ARCHITECTS, INC.
Tuesday, December 8, 1987 - 7:00 A.M.
City Hall
Members Present: Vice Chairperson Lowell Schrupp, Ben Smith,
Al Larson, and Everette Ellison.
Members Absent: Chairperson Ren Maus.
Guest: Mr. Alvin Sheldon of Johnson, Sheldon, and Sorensen Architects,
Inc.
Mr. Sheldon met with HRA members to hear the HRA's concept to
higher quality housing for the elderly (individually owned,
townhouse concept: close to downtown; 1, 2, and 3 bedroom
options with attached garage and garden space available.)
SUMMARY:
A. Site Options Available.
1. One site option - Lots 4,5,6, and 7, Block 33, City
of Monticello, total of 43,560 sq ft or 1 acre, could
accommodate an 8 unit townhouse concept.
2. HRA needs to research other site options.
a. East of Cedarcrest.
b. West of Highway 25 along Walnut Street.
c. Others.
B. Design Concept.
1. One, two, or three bedroom (option of two floors)
with single/double garage.
2. Design to be prepared by Johnson. Sheldon, and Sorensen,
Architects, Inc.
3. One bedroon plus den, 1,000 to 1,300 aq ft, estimated
coat $72,000 per unit.
C. Do we need a dPvPlnper? Cost effective.
D. Is the HRA envolved in presale?
Do we need a sell out?
How to contact interested parties?
E. Are local contractors interested?
May have better network with local banks.
Mr. Sheldon will have his firm prepare a design concept based
on the discussions and the HRA will moot with Mr. Sheldon the
middle of January in the evening.
Summary by 011ie Koropchak, HRA Executive Secretary.
i
,BED XOOM
z�ii-Ai 1
BATH
0
BATH
FBTE
1SX 12
SQUARE FOOTAGB
END UNITS LIVING AREA ....... 1204 60. PT.
GARAGE AREA ............ 440 SO. FT.
TOTAL . .......... 1644 60. FT.
CENTER UNIT'S LIVING AREA ... 1040 SO. FT.
GARAGE AREA............ 440 SO. FT.
T0TAL............148 6O. FT.
STANDARD FEATURES
DOUBLE GARAGE • ENCLOSED AND INSULATED
DOUBLE INSULATED STEEL ENTRY DOORS
WOOD FRAME DOUBLE GLAZED WINDOWS
ENERGY EFFICENT INSULATION
SOUND DROOP EXTERROR WALLS
OAK CASWTS
SHEET VINYL 01 KITCHEN AND BATHS
GARAGE
22)(20
_ GARAGE
22X20
= i
I
MONTICELLO TOWNHOUSES
CERAMIC TILE TUB SURROUND
DELUXE CARPETING
ELECTRIC RANCE•0ISHIMSNIEP- DSP0SAL
van
40 GALLON WATER HEATER
LAUNDRY TIB • YVASHER CONNECTIONS
�
io•iwwd�lf�lwew •
AUTOMATIC GARAGE DOOR OPENER
:W
ARCN1TZcTs 1".
EXTENSIVE LANDSCAPED OPEN E
.w. �n �n•�w•irii
'AIA.OAVtS W Eam Man 0Mce
!Carlson
Rm 3864462ociates,
Inc.
REALiFWCOOPERATiVE OF MANKATO
' • ,Yl6 Boum &ae 8t
wnato ra seoot
.:
MN saes
8oenwiu er edoe a 6oaw 1MWry
2930
�
..:.8;.•r//1�/�y - aAs-mss
7
iJ colli
� `j�.R�a�df'1 !•sCdU (ten ��
w
it
�....,.., San- ,•.
OUNDIh ROAD
I
I
I
I
I
I
I
I
I
I
H
This agreement, executed this �� — day of December, 1982, by and
between the Monticello Housing and Redevelopment Authority (hereinafter
referred to as "the HAA") and IXI laboratories, Inc., (hereinafter re-
ferred to as "the developer') seta out provisions for the disposition
of lands and the orderly development thereof in accordance with the
Central Monticello Redevelopment Plan. The HRA and the Developer do
hereby agree as follows:
THE DEVELOPER AGREES:
1) That development of land and all buildings shall be in accordance with
this agreement and with the Central Monticello Redevelopment Plan.
2) That for the purposes of establishing valuations for taxes payable,
the building to be first constructed on the East 180 feet of Lot 7 -
Block 3, Oakwood Industrial Park, shall be deemed to be totally
complete and assessed as such as of December 31, 1982.
3) That for the purposes of establishing valuations for taxes payable,
the building to be second constructed on the East 180 feet of Lot 7 -
Block 3, Oakwood Industrial Park shall be deemed to be totally com-
plete and assessed as such as of August 1, 1983.
6) That in the event the County Auditor will not record evaluations
for a complete building prior to its actually being complete, IXI
will pay to the City the difference between the tax increment based
upon the partial building and the tax incroment for the completed
structure.
5) That they shall purchase from the HAA, the East 180 feat of Lot 7 -
Block 3, Oakwood Industrial Park, on or before December 10, 1982,
and they they shall remit payment in the sum of $8,000.00 to the
HAA on the date of purchase.
6) That they shall purchase from the HAA the remainder of Lot 7 -
Block 3, Oakwood Industrial Park on or before December 31, 1980,
and that they shall remit payment in the aum of $5,500.00 to the
NAA on the data of said purchase.
7) That development of building, on said remainder of Lot 7 - Block 3,
Oakwood Industrial Park, shall commence within 12 months after the
data of conveyance and that said buildings ahall be, for tax asa000-
mont purposes, of a value equal to or greater than those buildings
orocted on the East 180 foot of lot 7 - Block 3, Oakwood Induatrial
Park.
8) That no "project lad" acquired by the developer from the HRA may be
resold prior to improvemonts boing made without the prior written
consent of the HRA, except that project land may be conveyed to a
separate entity of IXI, which for their own reasons, is established
as separate from IXI Laboratories, Inc., this shall include the
owners of III, Inc., as individuals.
9) That there shall be no discrimination on the basis of race, color,
sex, creed or national origin in the sale, lease, transfer or oc-
cupancy of the property covered by this agreement.
10). That the property stall be devoted only to the uses that fall with-
in the scope of the Central Monticello Redevelopment Plan for a
period of twenty (20) years from the date of this agreement.
11) That, except where physically impossible, all public and private
utilities serving the parcels within this agreement shall be
underground.
12)-- That during the period that the HRA holds an option on Lots 5 and
6 - Block 3, Oakwood Industrial Park, the developer shall pay to
the HILA an amount equal to that year's tax plus the interest com-
puted against that years' required special assessment payment.
THE HRA AGREES:
1) That the HAA will convey to the developer title to the East 180
feet of Lot 7 - Block 3, Oakwood Industrial Park, on or before
December 10, 1982, for the am of $8,000.00.
2) That they will provide a deed to the East 180 feet of Lot 7 -
Block 3, Oakwood Industrial Park.
3) That the HRA will hold for exclusive sale to the developer the
remainder of Lot 7 - Block 3, Oakwood Industrial Park, until
December 31, 1984.
4) That on or before December 31, 1984, upon a reasonable request
from the developer, the HRA will convey to the developer the
remainder of Lot 7 - Block 3, Oakwood Industrial Park, for the
herein agreed upon price of $5,500.00.
=S)- That they will execute an option on and hold the option for the
developer on all of Lots 5 and 6 - Block 3, Oakwood Industrial
Park, for a period of five years commencing with the data of this
agreement.
6) That where economically feasible, the IDA will create additional
Tax Increment Financing Districts to facilitate the sale and de-
velopment of all other parcels referred to herein.
•f!� That, so long as Tax Increment Financing Districts can be estab-
lished, the HRA will purchase, either in part or in whole, Lots 5
end/or 6 - Block 7, Oakwood Industrial Park, and shall convey such
parcel to the developer with the coat to be negotiated at that time,
but that in no case will the coat exceed the sum of $3,500.00 per
acre.
8) That for all sales of land referred to herein, the cost is the total
cost. No existing special assessments shall be transferred to the
developer, unless the developer requests such transfer. The BILA
further agrees that when the price agreed upon herein is paid by
the developer to the HILA, the title to the parcel will be trans-
ferred free of all encumbrances.
9) That the developer may encroach upon that part of Lot 7 - Block 3,
Oakwood Industrial Park, which has not yet been conveyed when in-
stalling utility lines to serve the Fast 180 feet of Lot 7 - Block 3,
Oakwood Indusltrial Park, if the design standard so dictates.
DATED: /0 /)t P.ta('t A7 , 1982
'aA�44VL -
WITNESS
10 PLMUD-AMNEWA
COUNTY
MY COMM. OW. JUNE H, lose
WITNESS
�}W NOTA � DOMMA
"- WOMOM
Mtl COMM. EV. SUMS 11.1M
FOR IRI LABORATORIES, INC.
Ro Id R. Johnson*, President
i
Dee L. Johnson, Vice President
FOR THE MONTICELLO ROUSING
AND MMEVELOPRENP AUTHORITY
Dr.P lip White, Chairman
Thomas A. Eidem, City Administrator
' ' ',art;=�•
..'
,,.
�,7�4•.
b.
:,
Atjanda -�8/2i/3? •
. Council' ..
;��••
S. Gonsidcr6tion of e'R0Qu09t from the' Hous ing'and:Redevalopment
Authority for a Loan to Acquire land. '• (T.E.)'��.-, _: ,`,; �,Y 1=�•j,:
••-��" �,;
Last fall when we' beEered negotiations and, )i ided S.ixr�n'rfgment
;gtti;�•
Financing for IXI; ve concentrated:all of RE—'efforfq;on'_Lo,17,
•.--•:.u.^p
Block 3, in Oakwood Industrial• Park.= During-tYo'original,:_t."
• f.
negotiations and the preeentation of the conatruciiet'pl$ri
'•rt 'T
for IXI, it was apparent that Lots 5 and 6 wers�intbr4dd toi;
be purchased and it: was'aleo intended that anpoptift ba:tekbn
''r: �"�i•r;`
on that land. Because of the time limits that vn'{`acedi last
: i
fall, we purchased only Lo: 7 and established our district
on only part of that lot. Upon ccrtification'of'the first
tax increment district, we began negotiatinns for an optica
on Lots 5 and 6 with the express intent of holding that land
for IXI. IXI's main concern was that once bujing. Lot 7, Lot 5
would be offered to another party at a higher;price. and because
IXI would have to have the land, they, would be !oared to go.
with the higher rate.--- We I said wb would holp`plpte�d�k'that by
doing the option. Howcver,� iT' Vnio unable' C arTto at• an ..
•. ;';• ., =
option agreement with the bakwood lnduru1rta1 &V, urtnurohili•„
They took, the poeitlon .that the option rrrllj)iiy6I'd �oiudo•'tgl` •'
'j '_ �'^: t,T
.,penalty and interest and'taxod:t 48 ac, -rues
not only for the current period ead'iar any. future. pcvintic'
that might have to be held, but they .ilu, felt toot ;ae ntiwld
pay penalty and interest un dr lingnenci^n troo thn;'d,iy
'
for�watd. It was our contention that we sho,,lq nyll•hacd to,.-
o,;pay
paythe ongoing delinquoncy,•penelt and interootgl:jnee't;hu,"
Y
T
problem of delinquoncieu we-; cyno'tliat wan floated by,tha.,.a r
y.-•
t
partnership and not by tis: That point wao lover rasol:�d`•.
- 4:
and ultimately an option was not agreed upon. r'envot,,ations�
did, however, remain Open.
IX: recontly aprroached tho Ctkvooi ParG.t•tnhip'to re•;a,t
perm,nuicn to begin constrcctior, of thair berm aroun,3 all
of Levi 5, 6 au.i 1, even tnuu,,h the; d.i nut have avtirr:b-ip
of luta, 5 and 6, ao yr L. Fran a financt,.l t,tandpeint, Iyl's
}plan it; to hent; in the heavy dirt. nivinq cqutpa.cnt and have
them dig for all of the foundaticnc, and mm. all of the fill
and do all of tho grading at one time, raLher•than having to
hire machinery to Como in on coveral other oeeanionc to do
party of tho )ob. no Oakwood Partncrohrp ia• uncomfortablo
with alluvinq land that they still own to be graded and
h,•tTned. I talked to Doo Johnoon and oxl,re,,sod that if the
city had ownership, we would connidor it but we would roquire
a written nuarnnten that uhnild IXI, for whatebor ruacan,
- 7 -
Council Agenda - 8/22/83
elect not to utilize the land, they would require to restore
it to its original condition. Dee Johnson indicated that they
would be happy to provide such a guarantee.
I wish to now address the financial considerations in making
this purchase. The HBA, as you are well aware, has,at this
time,very limited resources. Their only source of revenue
is anticipated through the various surplus of tax increments.
They do have available by law, the right to levy a special
tax, but by their own resolution they will not utilize a
tax levy for their purposes. The HRA is unanimous in that
position. Because they have limited resources, their only
recourse is to borrow money in order to purchase lend. The
peculiar thing about borrowing money is that the lender
usually expects you to pay it back. The only way the HM
can repay debt is by using the tax increment that they collect
annually and which is dedicated to the repayment of debt.
where a particular project may not be scheduled for con-
struction for a year or two, then the tax increment would not
come to the BRA for three to four years. 'flus, the problem.
If the HRA borrows money from a public lender now to buy the
land, tho first payment would probably be due within 18 months,
but the HRA would not,at that time, have collected its first
increment to make that payment, nor do they have the surplus
funds in their account to make that payment. Thus, the request
to the City council to provide them with a loan that would be
of a demand type, and allowing the first payment to be post-
poned to the time of the collection of the first increment.
This in precisely the same arrangement that was made with the
City Council last fall when we initiated the IXI project.
The total acquisition price for free and clear title to Iota
5 and 6, Block 3, of Oakwood Industrial Park is 6156,800.00.
This in computed at the price of 610,000 par acro plus all
assessments or a price of 613,030.00 per acre. I asked Rick
how our cash flow statue appeared with respect to making that
loan in anticipation of certain paybacko. The Oakwood Partner-
ship intends to do the following upon receipt of purchase price.
Approximately 628,500 would be paid directly to the City for
those assessments for future years an lots 5 and 6. Approxi-
mately 625,200 will be paid to the County for delinquencies
and 1983 taxes and assessments on toots 5 and 6. 906 or more
of that 625,200 would come back to the City within three
months with the rant of the County distribution. The Oakwood
Partnership would retain approximately 610,000 to 612,000 to
cover their income tax liability for the sale of the land.
The balance of the money will be used to pay delinquencies and
- 8 -
WE -
Council Agenda - 8/22/63
futures on other lots in Oakwood Park in an attempt to clear
a few lots of assessments. The end result is as follows:
Of the $154,600, approximately $12,000 will be hold by the
Oakwood Partnership, approximately $76,000 will be paid
directly to the City, and approximately $67,000 will be
paid to the County (90% of which shall be returned to the
City within 3 months). Rick has indicated that this does
not present a cash flow problem as long as we are expecting
return of the money in this fashion. Thus, of the $154,800
that is loaned to the HRA, about $142,000 will came back
to the City either directly or within 3 monthu with the
County distribution. At the same time, the HFA would have
a debt to the City Council of S.^I,PGJ. That duLL will tj
repaid on demand through tax :n.roments. 2a:vi �n the
City's most current band is.w is rill ae :•t.:,r cumrmt
issues, it is my cpiuioll tha•_ L . intm.r •t 1c,41-2 l:,• qn to-
priate.
REFERENCES: Financial data uhaet, maE of the site.
- 4 -
Council Minutes - 8/22/83
7. Consideration of Municipal Liquor Store Financial Statements
for the First Six Months of 1983.
Mark Irmiter, Liquor Store Manager, was present at the Council
Meeting to review the financial statement for the first six
months of operation for the off -sale Liquor Store. Mr. Irmiter
noted that sales were down approximately 4% from last year's
figures which has been the trend in other communities during
the past six months also. The resulting net income was only
$400 lower than last year's income for the same period.
It was noted that some possible improvements to the Liquor Store
in the future could be parking lot expansion and the addition
of new cash registers which will be budgeted for in 1984.
No other action was taken other than the review of the state-
ments as presented.
S. Consideration of a Request from the Housinq and Redevelopment
Authoritv for a Loan to Acquire Land.
Last fall, the Monticello NRA provided tax increment financing
for IXI Corporation on Lots 7, Black 3, Oakwood Industrial Park.
During the original negotiations, it was apparent that Lots 5
and 6 were also intended to be purchased for future enlargo-
went of the IXI Corporation's building complex. The City's
HRA originally only purchased Lot 7, but it wan the intent
of the HRA to obtain an option on the two additional loto
so that this land would be available once IXI started to
expand their complex.
IXI Corporation recently approached the Oakwood Industrial Park
Partnership to roquoot permission to begin construction of
their borm around all of Loto 5, 6 and 7, even though they
do not have ownership of Loto 5 and 6 yet. From the financial
standpoint, IXI's plan is to bring in the heavy dirt moving
equipment and have them dig all of the foundations,
move all of the fill, and do all of the grading at one time
rather than have to hire machinery to come in on oeveral other
occaniono to do porta of the job. Tho Oakwood Partnarohip in
uncomfortable with allowing land that they still own to be
graded and bormod and would like to ace the HRA acquire the
land firot. The total purchaoo price of the remaining two
loco would require a loan from the City in the amount of
$154,800.00. Once the land wan acquired by the HRA, portions
of the lot would be ronold to IXI Corporation in pha000 with
the loan being ropaid to the City from the tax incremento
generated on future building projecto.
A motion wan made by Maua, accondod by Fair, and unanimoualy
carried to authorize the HRA to borrow $154,800.00 from the
City to be repaid with the tax incremonto goneratod from IXI'o
expansion projocto with an annual interoot rate of 8% per year.
3- 0
HAA Minutes - 9/7/87
amount of $32,000.00.
A brief discussion followed concerning a letter of credit from the
developers. Mr. Larson indicated that he understood why the HAA
would request such a letter, but felt that placed an additional financial
strain on the developer since letters of credit from a lending
institution require an annual fee to reserve the funds. Schrupp
indicated that he understood the Authority had taken action that would
require a letter of Credit from all tax increment finance projects.
Eidem explained that action taken at the June 22, 1983 meeting of
the HAA was that a letter of credit was deemed essential for the
James Power -s proposal, and that by consensus the Authority felt that
a letter of credit should be a necessary requirement for future projects.
He noted that the letter of credit requirement was not made a formal
requirement by adoption of a resolution. This issue was left unresolved
with the intent to resume discussion on this matter at a future meeting.
S. Eidem reported to the members that at the August 22, 1983, meeting of
the City Council the HRA's request for a loan of $154,000.00 was approved.
Motion by Schrupp, seconded by peeve, and carried unanimously to purchase
Lots 5 6 6, Block 3, in Oakwood Industrial Park.
Eidem went on to explain that IXI, Inc., had requested permission to
begin landscaping and be cooing around Lots 5 L 6, Block 3, Oakwood Industrial
Park, prior to their assuming ownership. They explained that for economic
�~ reasons it was mc:s cost effective to have all of the landscaping done
at a single time rather than hiring a contractor to come in after each
parcel acquisition. Eidem explained that Dee Johnson, vice President of
IXI, had agreed to enter into a written agreement stipulating that, should
IXI not fulfill their obligation to purchase all of the land, they would
return the Lots to their original condition at their own expense. Motion
by Cochran, seconded by Vokaty, and carried unanimously to prepare and
enter into an agreement with IXI, Inc., which would allow IXI to landscape
and berm around the perimeter of Lots 5 a 6 in Block 3, Oakwood Industrial
Park, prior to their, IXI's, assuming ownership of that land.
6. Eidem introduced to the Authority a proposal from the City of Delano that
would entail a joint powers agreement between four cities who would then
issue 10 million dollars in mortgage revenue bonds. He explained that
the idea had just been proposed to him and that he had very limited informa-
tion available at this time. Basically, he explained that the program was
to address a housing need. Eidem stated that, based on the limited informa-
tion he had, he understood the program to work as followsa The bond
proceeds would be handled directly by a lending institution. Developers/
contractors, on a first come, first serve basis, could reserve a certain
amount of dollars in mortgage money. First time home buyers meeting certain
income guidelines would then be eligible for application for the mortgage
- 2 -
City o/ Montice[[O
MONTICELLO, MN 65382.9245
December 4, 1987
Plane (612) 05.2711
Maas (612) 375872
250 Fin 8100".
ManeOaeo, MYwa001
es50bs24e
Mr. Al Sheldon
Amine p�ynp
Johnson. Sheldon, and Sorenson Architects, Inc.
pry C"Wt.
10249 Yellow Circle Drive
Dan 6lonfpsn
Minnetonka, MN 55343
Fran Fair
Wmhrn Fair
VAVWSmnn
Dear Mr. Sheldon:
This is a letter of confirmation from the Monticello
AoeYMsvelor:
Housing and Redevelopment Authority.
Rich WattatWw
John SWOe
It is my understanding from HRA Member Ben Smith
P1Zon{nw
that arrangements have been made with you to represent
G" Anftneon
your company, Johnson, Sheldon, and Sorenson Architects,
Inc., at an BRA informational meeting scheduled for
Oft Kwopchek
Tuesday, December 8, 1987, 7:00 A.M. at the Monticello
City Hall, 250 East Broadway, Monticello, Minnesota.
The five HRA members have been notified by mail of the
y
informational meeting on elderly housing concept
-
options.
Please call me at (Metro) 333-5739 or (612) 295-2711,
if my understanding is incorrect. I look forward
to meeting you early Tuesday morning.
Sincerely,
/
011ie Roropchak
Director and Executive Secretary
Monticello Housing and Redevelopment Authority
cc: File
250 Fin 8100".
ManeOaeo, MYwa001
es50bs24e
Cri�t� of l �ontic-t o
y., MONTICELLO, MN 56382.8245
December 4, 1987
Phar (612) 295-2711
Ma (612) 333.6798
A=. a...
Cfty Council:
Dan
r� Fair
14Fak
Smith
Dear HRA Member:
The Monticello Housing and Redevelopment Authority
AdmiNstr a.
will hold an informational meeting on Tuesday,
arch Wa:htwr
December 8, 1987, 7:00 A.M. , at the City Hall.
Public worwfi
John &oqh
HRA Member Ben Smith has made arrangements with
��"a
Mr. Al Sheldon of Johnson. Sheldon, and Sorenson
Economic DwybpewuL
Architects, Inc., Minnetonka, Minnesota to present
011ie Kalaimhok
elderly housing concept options to the HRA.
See you at 7:00 A.M., Tuesday.
�.
Sincerely,
\/
Q,_ . `C�dk o t
011ie Koropchak
HRA Executive Secretary
cc: Chairperson Ken Maus
Vice -Chairperson Lowell Schrupp
Ben Smith
Al Larson
Everette Ellison
Administrator Rick Wolfstallor
2 9'www
6636 -924455 oL
Mo (612) 295-2711
Mhfio (612) 3334779
,Krvs Onmuno
Oen
Fran Fak
Wmkmu Fab
Wanan &Nm
Ad"MUNUMor:
Rbk Wo11Wtla
Public Wort
John Siv ols
p�Oery Z"—* 1
Ecomm, Droolopmau:
Obs Kompchak
250 Ean Brokmiwy
Mormoamo, hurraou
CLtfy 4 In a.- t.
MONTICELLO. MN 65382.9246
November 25, 1987
Dear HRA Member:
Hereby is given written notice of the Monticello
Housing and Redevelopment Authority's Annual
Meeting scheduled for Wednesday, December 2, 1987,
7:30 P.M., City Hall.
Enclosed is the agenda.
Sincerely,
CSA. Kd.
011ie Koropchak
HRA Director
cc: Lowell Schrupp
Kenneth Maus
Sen Smith
Al Larson
Everette Ellison
Rick Wolfateller, City Administrator