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HRA Agenda 05-13-1992 SpecialAGENDA MONTI CELLO HOUSING AND REDEVELOPMENT AUTHORITY SPECIAL MEETING Wednesday, May 13, 1992 - 6:310 FN City Hall MEMBERS: Chairperson Al Larson, Ben Smith, Lowell Schrupp, Everette Ellison, and Tom St. Hilaire. STAFF: Rick Wolfstelle r, Jeff O'Neill, and 011ie Koropchak. GUEST: Floyd and Edward Kruse. 1. CALL TO ORDER. 2. CONSIDERATION TO DISCUSS THE KRUSE COUNTER—OFFER FOR POTENTIAL ACQUISITION. 3. CONSIDERATION TO AUTHORIZE BDS TO PREPARE A RESOLUTION AND PUBLIC HEARING NOTICE FOR ACQUISITION OF THE KRUSE PROPERTY. 6. ADJOURNMENT. HRA AGENDA 5-13-•92 CONSIDERATION TO DISCUSS THE KRUSE COUNTER-OFFER FOR POTENTIAL ACQUISITION. A. REFERENCE AND BACKGROUND. At the NRA meeting on April 23, the HRA passed a motion authorizing Jeff O'Neill and Koropchak to submit a firm HHA purchase offer of $20,000 maximum for the Kruse property. At that time, Mr. O'Neill indicated to the HRA that lie thought the Kruse's asking price was $30,000. With authorization from the HRA, Mr. O'Neill contacted Mr. Kruse the following morning and presented the HRA offer of $20,000 which was not accepted. Thereafter, Mr. O'Neill asked Mr. Kruse to attend a special HRA meeting. On May 6, the HRA met with Mr. Edward and Mr. Floyd Kruse to discuss their counter-offer of $24,000 for the northerly 80 ft of Lots 9 and 10. Mr. Kruse pointed out that in his opinion a wooded lot in Monticello was worth more than $16,000 (less demolition cost of $4,000) based on HRA offer of $20,000. He also noted construction of a new home would have occurred if the city had not made an error, no need for a variance. The HRA discussed other land sales, the small lot size, and the need to make the entlrt project cash flow. Koropchak pointed out the lot was leas than 10,580 sq ft and asked if the water and sewer services were capped at the property line. Estimated cost to cap the services is approximately $1,000. Koropchak informed the HRA of the need for a City Council public hearing and adoption of a resolution prior to any acquisition of property by the HRA within a redevelopment project area. The public hearing notice must be publicized not less than 10 days but not more than 30 days in the local newspaper; first opportunity for a public hearing is Tuesday, May 26. Mr. Kruse had no problem waiting for the public hearing but did want a decision from the HRA prior to May 26. Mr. Kruse's offer was $24,000 ($20,000 for the lot and $4,000 for demolition coat). The HNA tabled the agenda item to allow further study of the feasibility to redevelop and cash flow this project area, and to allow input from Mr, St. Hilaire. The HRA will meet as soon as possible. Pago 1 HRA AGENDA y 5-13-92 Since that meeting and this past Monday, Mr. Kevin Schmitz, Prestige Bu alders; Gary Anderson, Building Official; and Koropchak toured the site. Kevin was very interested in the redevelopment project area from the standpoint of a marketable site. And he agreed with the HRA on the ideal location for the elderly: Close to downtown and the park, and a view of the river. In brief discussions with Gary, the redevelopment of seven cottege homes would require a public hearing for a rezoning from R-1 to R-2, the need to plat the property, and the need for a variance request for 5 feet side set backs. Kevin was go.Ing to prepare construction costs associated with the redevelopment. Koropchak checked with the County for delinquent taxes and assessments on all four properties and 1992 estimated market values and taxes, and prepared base valuations for the redevelopment project area. This Information is all enclosed and will be reviewed at the meeting. Other information for the HRA to consider when discussing the purchase of the Kruse property: ASKING PRICE: $30,000 HRA OFFER: $20,000 COUNTER-OFFER: $24,000 LOT SIZE: LESS THAN 10,880 SQ FT ESTIMATED MARKET VALUE OF LAND $14,000 BRIAR OAKS LOTS: $17,SOO APPROXIMATELY 12,000 SQ FT. $27,500 APPROXIMATELY 24,000 SQ FT (1) (SEE ENCLOSED INFORMATION). CONSIDERATIONS: - BUILDABLE LOT - ALL BASEMENT FOUNDATION MATERIALS REMOVED. - FILL BASEMENT HOLE WITH COMPACTED GRANULAR MATERIAL. - SEWER SERVICE HAS BEEN CAPPED ON FRONT STREET. - WATER SERVICE MUST BE CAPPED ON LOCUST STREET. Page 2 HRA AGENDA 5-13-92 - DISCONNET ALL OTHER UTILITIES THAT SERVICED THE PROPERTY. - REMOVE OR DEMOLISH GARAGE INCLUDING FLOOR. - REMOVE OR DEMOLISH OUTDOOR STORAGE SHED. - SELLER PAYS TAXES ASSESSED IN 1991, DUE AND PAYABLE IN 1992. - • OR SELLER PAYS TAXES ASSESSED IN 1992, DUE AND PAYABLE IN 1993. - BUYER PREPARES PURCHASE AGREEMENT. - SELLER UPDATES ABSTRACT. - BUYER HAS A TITLE OPINION SEARCH COMPLETED. - CONTINGENT UPON PUBLIC HEARING OUTCOME ON JUNE 8 AND ADOPTION OF A RESOLUTION BY CITY COUNCIL. - SELLER PREPARES WARRANTY DEED. - T FILES DOCUMENTS AT COUNTY. The HRA can purchase the property and the worst case scenario being a lose of dollars. Inorder to meet Statutory requirements for public hearing notice publication, the City Council public hearing and resolution adoption must now be held Monday, June 8, 1992. B. ALTERNATIVE ACTIONS. 1. A motion to purchase the Edward Kruse property at an agreed price of dollars between seller (Edward Kruse) and buyer (Monticello Housing and Redevelopment Authority) and list contingencies. 2. A motion acknowledging the withdrawal of interest to purchase the Edward Kruse property. 3. As otherwise suggested by the HRA. 4. Table the agenda item. Page 3 NRA AGENDA 5-13-92 STAFF RECOMMENDATION . If the HRA finds this redevelopment project area to meet the public purposes of the redevelopment plan and if the buyer and seller can agree upon a purchase price, than staff recommends the purchase of the Kruse property contingent upon the Council public hearing and findings of the adopted resolution, and other designated contingencies. SUPPORTING DATA. Copies of the 1992 market values and taxes, base valuations, maps, and Prestige cottege home development concepts. Page 4 40.027 ECONOMIC DEYEt.OPMENT 45 1, is situated, for its study, or, if no planning agency exists, the plan shall be submitted to an agency indicated by the governing body of the city. An authority shall request the , written opinion of the planning or other agency on all redevelopment plans submitted to it prior to approving those redevelopment plans, and the planning or other agency shall submit its written opinion within 30 days. History: 1987 c 291 s 27 169.028 MUNICIPAL GOVERNING BODI'. Subdivision 1. Findings, notice. determination. When an authority determines that a redevelopment project should be undertaken. it shall apply to the governing body of the city in which the project is located for approval. The application shall be accompa. nied by a redevelopment plan, a statement of the method proposed for financing the project, and the written opinion of the planning agency, if there is one. Before appres- ing any redevelopment plan, the governing body shall hold a public hearing thereon after published notice in a newspaper of general circulation in the municipality at least once not less than ten days nor more than 30 days prior to the date of the hearing, Subd. 2. Findings, notice, determination: governing body. The authority shall not proceed with the project unless the governing body finds by resolution that: (1) the land in the project area would not be made available for redevelopment without the financial aid to be sought; (2) the redevelopment plans for the redevelopment areas in the locality will afford maximum opportunity, consistent with the needs of the locality as a whole, for the rede- velopment of the areas by private enterprise; and j (3) the redevelopment plan conforms to a general plan for the development of the t locality as a whole. The governing body shall within 30 days after submission of the application. or resubmission as hereinafter provided, give written notice to the authority of its decision with respect to the project. When an authority has determined the location of a om t posed redevelopment project, it may, without awaiting the approval of the govemtng body, proceed, by option or otherwise, to obtain control of the real property within tht area, but it shell not, without the prior approval by the governing body of the redesdop mens plan, unconditionally obligate itself to purchase any such property. .4 plan which c has not been approved by the governing body when submitted to it may he again sal. mitted to itwith the modifications necessary to meet its objections. Once approved. the determination of the authority to undertake the project and the resolution of the go- eming body shall be conclusive, in any condemnation proceeding, of the public need } for the project. Subd. 3. Acgsdsilion of open land. A redevelopment project may include any aarl or undertaking to acquire open or undeveloped land determined to use blighted b) sV, tue of the following conditions: (1) unusual and difficult physical characteristics of the ground; (2) the existence of faulty planning characterized by the subdivision or We diad laid out in disregard of the contoun or of irregular form and shape or of inadeQ1110 r size; Or (3) o combination of these or other conditions which have prevented tsotttsi j development of the land by private enterprise and have resulted in a stagntat ante unproductive condition of land potentially useful and valuable for contnbutsng rofy j public health, safety, and wolfare. Acquisition of such land shall be a rede`t1a0� . project only if a redevelopment plan has been adopted which pros ides for the tion of these conditions, thereby making the land useful and valuable for toatn�M to the public health, safety, and welfare and the acquisition of the land is tteeeta9 carry out the redevelopment plan. Subd. 1. Actialsitlon of astoed or Inappropriately used land• A recleveloDdoo i ecu may include any work or undertaking to acquire land or space that Is d unused, underused or inappropriately used, including infrequentlY used rail ECONOMICoEVEIAPMFNraaan eto has been discharged, other than dishonorably, from, or the family of who died in. the armed forces of the United States, if that family iation for admission to the project within any time limit specified by applicable to federal financial assistance for the project. If it is found upon that the net income of any families have increased beyond the maximum xed pursuant to section 469.022 for continued occupancy in the hour-(ryathes 7i, shall be required to move from the project.1987 c 291 s 23pO%-ER OF AUTHORITY.contained in sections 469.016 to 469.024 shall be construed as limiting "rR of11111111aan authority (1) with respect to a housing project to vest in an obligee ther event ofs default by the authority, to take possession or cause the appoint- from by da receiver of the project, free the restrictions imposed this section or or (2) with respect to a redevelopment project, in the event of a default ) ,j rp469.023: R user or lessee of land, to acquireproperty and opmtc it free from such _� Mawr. 1987 c 291 s 24 S@d DEMOLITION OF UNSAFE OR UNSANITARY BUILDINGS. I! No project for low -rent housing or the clearance of a blighted area involving the Wom , ion of new dwellings shall be undertaken by a housing authority unless, subse- I r_ Hass to the initiation of the project, there has been or will be elimination by demoli- �(( ML condemnation, and eBective closing, or compulsory repair, of unsafe or- soyury buildings situated in the arca of operation substantially equal in number to s oa awnber of dwelling units provided by the project. The elimination may, upon ) waposal by the commissioner of trade and economic development, be deferred for a y 1 noddeterminedbythecommissioneriftheshortageofdecent,safe,orsanitaryhous- 1 .4 available to families of low income is w acute as to fora dangerous overcrowding of tbmc families. History: 1987 c 291 s 23; 1987c Man I s 26 suhd 2 40.026 EXISTING BUILDINGS; ACQUISITION, REPAIR. i# An authority may purchase, lease, or otherwise acquire existing buildings for rcha- bilitauon into low -rent housing. The provisions of sections 469.001 to 469.047 relating as other low -rent housing projects shall apply to the projects. Before proceeding with ahr project. an authority shall make an analysis demonstrating: i ( 1) the buildings to he acquired or leased shall be in such condition that it is feasi- ble to remodel, repair, or reconstruct them and that the buildings, when rehabilitated, %III provide decent, safe, and sanitary housing: Cl the rehabilitation of the buildings comprising the project will prevent or arrest the spread of blight was to protect the neighborhood in which the buildings are located; and 131 the rehabilitated buildings will provide low -rent housing, will help to conserve the existing housing supply, and will otherwise accomplish the purposes of sections 469. 001 to 469.047. Nothing in this Lection shall limit the powers of an authority with respect to a rede- vNopment project. ) History: 1987 c 291 s 26 1 469,027 REDE%'EI.OPMENT PLAN. Any person may submit a redevelopment plan to an authority, or an authority may considera redevelopment plan on its own initiative. An authority shall immediately transmit the plan to the planning agency of the city in which the area to be redeveloped r ECo%osstr uevl:usPaEM 469.029 r d ' facilities, and excessive or vacated railroad nghtsof-way: air rights over w -revs• railroads, waterways, and similar locations: land which is occu. f-C. rcttonally obsolete nonresidential buildings. or is used for low utility' pur- covered by shallow water• or is subject to periodic flooding, or consists of nderused slips or dock areas or other waterfront property. This subdivision to land or space that the authority determines may be developed at a cost related to the public purpose to be served withoutmajor residential clear. iO. and with full consideration of the preservation of beneficial aspects of nd natural environment, for uses that are consistent with emphasis on hour and moderate income families. These uses include the provision of schools, arks and other essential public facilities and, where appropriate, all uses with new community development programs as defined in the United States wth and New•Community' Development Act of 1970, asamended, or similar undertakings related to inner city' needs- including concentrated sources of �aymcnt. f Sood. 5. Early acquisition. When an authority has determined the location of a 'P Pwd redevelopment project• but prior to the approval of the redevelopment plan did project as provided in subdivision ?, the authority may acquire individual tracts • itMW property with the approval of the governing body as to each separate tract. ggim approving early acquisition, the governing body shall hold a public hearing on & proposed acquisition activities after published notice in a newspaper of general cir- Cdation to the municipality at least once not less than ten days nor more than 30 days prior to the date of the hearing. Thr shall not proceed with the acquisition unless the governing body PMd+ rrsolutio but (11 the proposed acquisition is necnsary to carry out public c! rov, me to the area, or that the acquisition will contribute to the elimination of Not or deterioration within the area or that the acquisition is necessary to relieve ►ardship: and (') there is a feasible method for the relocation of families and individu- ab to be displaced by the proposed acquisition. The governing body may in approving early acquisition, agree to assume the tponsihuny for any loss that may anse as a result of the acquisition of land and related activities, including any costs of demolition, removal, and relocation• in the event that the properly so acquired is not used for urban renewal purposes because the urban renewal plan is not approved, or is amended to omit the acquired propertyor is abandoned for any reason. Nothing in this subdivision shall he construed to waive the requirement for public hearing upon the redevelopment plan for the redevelopment project. lliston': /937 c 291 1 :R 469.0:9 MSPOSA1. OF PROPER7l'. Subdivision I. Sale, lease, or development. In accordance with a redevelopment Plan. an authority may make any of its land in a redevelopment project available for use by private individuals, firms, corporations, partnerships. insurance companies, or other prisate interests, or by public agencies, by sale, leasr, or otherwise, or the author- uy nyelf may retain property' for redevelopment by it. The land shall be made available at a price that shall, r%cept as provided for to suhdtvistons 9 and 10, take into consider - Ilion the nttmated fair market or rental value of the cleared land asdetermined pursu. ant to %cotton 469.032, for proposed uses in accordance with the redevelopment plan. Subd. '_. Notice; public hearing; determination; term+ and loadltiunt. Any such lease or sale may he made without public bidding but only after a public hearing', after published notice, by the outhonty at least once not less than ten days not more than 30 days prior to the date of the hearing upon the proposed lease or tale and the provi- sions thereof. The terms of any such lease shall he lived by the authority', and the instru. ment of Icasc may provide for renewals upon reappraisals and with rentals and other provisions adjusted to the reappraisals. Every such Icau or sale +hail provide that the lesser or purchaser shall carry out or cause to he carried out the approved project area l CITY OF MONTICELLO BLOCK 54 1992 MARKET VALUES AND TAXES 155-010-054090 Kruse Northerly 80 ft of Lots 9 and 30 ENV $53,000 T $ 529.36 No assessments No delinquet taxes or assessments Lot 132 X 80 - < 10,560 sq ft 155-010-054991 Bostic Lots 9 and 10, exc the northerly 80 ft EMV $39,100 T $ 390.54 A $ 83.22 REB $ 456.66 No delinquet taxes or assessments Lot 132 X 95 0 11,220 sq ft 155-010-054070 O'Connor Lot 7 exc easterly 33 ft and Lot 8 EMV $53,500 T $ 534.36 No assessments No delinquet taxes or assessments Lot 99 X 148.5 a 14,701.5 aq ft 155-010-054060 Schlief Easterly 33 ft of Lot 7, and Lot 6 EMV $39,500 T $ 394.52 A $ 100.34 REB $ 550.50 No delinquet taxes or assessments Lot 99 X 132 a > 13,068 eq ft FRONT SET 13ACK (SHORTEST SIDE) 30 FEET REAR SET BACK 30 FEET SIDE SET BACK 10 FEET ROAD SIDE SET BACK 20 FEET NORTHERLY BLOCK 54 HAS A MINIMUM DEPTH 132 FT AND MAXIMUM 165 FT HAS A WIDE OF 330 FT HAS A TOTAL OF 49,005 SQ FT REZONE FROM R1 TO R2 PLAT PROPERTY WITH VARIANCE FOR 5 FT SIDE SETBACKS FOR DEVELOPMENT OF SEVEN COTTEQE HOMES COTTEOE HOMES 49 FEET DEPTH AND 40 FEET WIDE (1,545 SQ FT) 52 PERT DEPTH AND 40 FEET WIDE (1,410 SQ FT) r PRESTIOE.VAL 1 BASE VALUATIONS Cottege home 1,545 sq ft @ $53.25 per eq ft (grade 7.5) _ $82,271.25 1,410 sq ft @ $53.85 per sq ft (grade 7.5) _ $75,928.50 Garage 484 sq ft @ $12.00 per sq ft $ 5,808.00 Land 49,005 sq ft @ $1.28 per sq ft $62,726.40 HOME 1,545 $82,271.25 $72,000.00 @ .01 $ 720.00 GARAGE 5,808.00 25,040.16 @ .02 500.80 LAND 8,960.91 $97,040.16 $97,040.16 $1,220.80 HOME 1,410 $75,928.50 $72,000.00 @ .01 $ 720.00 GARAGE 5,808.00 18,697.41 @ .02 $ 373.95 LAND 8,960.91 $90,697.41 $90,697.41 $1,093.95 4 @ $1,220.80 $4,883.20 3 @ $1,093.95 X43,281.85 $8,165.05 - NEW CAPACITY VALUE _ $8,165.05 BASE CAPACITY VALUE 01,851.00 CAPTURED CAPACITY VALUE _ $6,314.05 1992 TAX RATE .99852 ANNUAL TAX INCREMENT $6,304.71 $6,304.71 X 15 YEARS - $94,570.58 •• BASE VALUE - NO AIR-CONDITION, NO FINISHED BASEMENT CONSTRUCTION GRADE THE SAME AS BRIAR OAKS DEVELOPMENT LAND VALUE AT TODAY'S MARKET VALUE r PRESTIOE.VAL 1 ,o coi c Prestige Builders ofst. Cloud Bi ZAR OAs 88T11TB Lot 1 $24,700 Lot 2 $24,700 Lot 3 $26 600 Lot 4 $25 800 Lot 5 $26,200 Lot 6 $25,600 Lot 7 $24,200 Lot a$24,600 $22,800 Lot 9 $22,500 Lot 10 $17,800 Lot 11 $18,400 PHASS I � Bleak Lot IZ , 1 $26,300 Lot 2 $26,300 Lot 3 $26,200 Lot 4 $27,300 Lot 5 $27,500 Lot 6 $27,300 Lot 7 $23,000 Lot B $22,800 Lot 9 $22,600 LOt 10 $21,000 - Lot 11 $27,500 Lot 12 $27,200 Lot 13 $26,700 Lot 14 $24,200 Lot 15 $23,500 - Lot 16 $17,500 Lat 17 $18,200 The above prices are shorn for informational purposes only. Prestige Builders will apply the cost of your chosen lot in the total cost of your austom built home. Prices may adjust from time to time. 604 4th Avo. NE 0 Bartell, Minnesota 56377 0 612.259-0859 11 Where Families and Nature Come Togetherl ftaftmedoss poeds me mmaa adt baa. Upsub m m ft Is** mtmad betsmm do Tie am and oe�0a®ood. C1q sarroeo 7bee Es rarer btm abdMWm E4Oaid 7be stra En aormd maaee4 armomto baa yet IVss Bde ad (butt b im UMODMD tlp bmta ams m abmcan IIQa sm" ba p . ?lft 0m00amt m b** derdopmmt En sttIo< ow" Mmapm. retldmtW bu rs4mm du bom mm to 01.000 stpae Clmdit tb poodbaft — opm" b4 p laq amra b,m Bile Odtzs Pads b • pbmeddeedop®rat %ft %WWI almm aommna6Y brt & AA (Eras ammOb m a amb aaemab sed pratxtlw aarmmts m mans r Car eon a Bae Osla Raats homeosoew All home b @de OeFts srm b dsaebpad to 0* 90 bb mbd% drrdoW In Cbn L Cd] He p "MbmaBsuommprs BvOdestodgmissedsppsdmObstrepdsedopmeat �� oaartntelm and aenb nosod fa oao� s •Co se'I- • es AtUsmrad cs=tme Ooosemmt amen m bawq. stlbox� bawgb em able bopat�dta • dpaau (ob �e 1 avelmroonsbu bm Vbodad tab � 1866060 Pr1-2594Mestige Builders of a tow .l Pres. e Builder` sN Of St. Cloud r 3pb.Z , A r L± �o- o .x W O O 8 I � Ca L 604 fouftAv&v*Nd0 UM Uut Mhw U 86377 64.2w -cm Meadowlawn Village sl to Plan 4 ad -o• Ro. Box 1280 i#an8mkwxwm um 61 - MS -00 p I Or 15 UWATION V.,1 /.>M Prestige Buildffs -\-, of SL Cloud EEF p I Or 15 UWATION V.,1 /.>M Prestige Buildffs -\-, of SL Cloud M E A D 0 W L A W N V I L L A G E LANDSCAPE FEATURES Accor Clanq trzp E=_t Rbllsed L?nd=_l_ ape P an: Phrut S*,,, I.andar_ ?pe Rocl; Glutr.0 Lain E'prinl; 1 inq SyLtem Outdoor '�.ecuritv Lighting STANDARD QINSTeLLCTION FEATURES r 6 Exterior Wal is - R Factor of 21 Total Ceiling R Factor of 44 Full 12 -Course Basement 200 AMP Service Nigh Efficiency 90%+ Gas Forced Air Furnace 40 Gallon Energy Efficient Gas Hot Water Heater T'yvelc Paper w t SPECIFIC ITEMS NOT INCLUDED Decorating (Other than those items in Purchase Agreement) Water Softnur Central Air Television Antenna Cables T.V. To I ephi:)no Hoolc-up *This list Irl not intended to cover every item that is not inclllried. Tho 13 -.u -pone of t_hia list ie purely to help �� ..,1 r• sr Il,n moat ltl,oly i temo to be misood or mi aur%derotoorl I,.;cur cm DuVnr• and Sullor. (ALL FEATURE'S ACCORDING TO PLAN) ii•d r M E A D O W L A W N V I L L A G E SARTELL. MN STANDARD INTERIOR FEATURES CUzt Om Guilt Gal: Cabinets with Formica 'Top=- (Allowance) 4 S•eAson Porch Double Stainle=s Steel 1(i tchen Sink Interior Liqhtinq Package (Al Iowanr-e) Ylhi.-Ipool Tub Floorinq (Allowance! Fiberglass Dathbays and and Showers Standard Dalhroom Accessories De-VF'r• 'went BAthrocm E.+haust Fans Raised 6 Panel Oak Doors Oak Princeton Casing and Base IuieraY E+-Ficient Low E. Windows iMul.roun or, Horvin) la,glt-in Clarets Vpjltprl Coilinul Lrblw T.V. Ie Ice per Lai i t Plione Jacl• o per Unit Fireplace Vrvnch Doorm Plumba4 and Wired for, Softnor 4TANDARD 9.XT9RIOR FEATURES Steel Siding Aluminum Soffit and Fascia DriGl: (According to Plan) Peachtree Entrance Doors Large Two Stall Garage Insulated Raised Steel Panel Garage Door Garage Door Opener with (1) Control Insulated 6 Panel Steel Service Door Asphalt Driveway Weather Proof Exterior Outlets (2) Exterior Frost Free Faucet (1) Private Covered Entry City Sewer and Water Window Grids NRA AG ENDA 5-13-92 CONSIDERATION TO AUTHORIZE BDS TO PREPARE A RESOLUTION AND PUBLIC HEARING NOTICE FOR ACQUISITION OF THE KRUSE PROPERTY. A. REFERENCE AND BACKGROUND. At the last HRA meeting, I informed you of the need to hold a public hearing for early acquisition of property and the need to hold a public hearing for the redevelopment plan for the redevelopment project. As Mr. John Dean, Attorney for Holmes & Gravons, was not fully aware that Monticello modified its Redevelopment Project Plan and Boundaries In the late 1980'x, misinformation was given Koropchak. Therefore, at this time a public hearing is not necessary for the redevelopment plan for the redevelopment project and only the public hearing for early acquisition of property Is necessary. The Council will hold a public hearing on June 8, 1992 and as statutory states: The authority shall not proceed with the acquisition unless the governing body (Council) finds by resolution that 1) the proposed acquisition is necessary to carry out public improvements in the area, or that the acquisition will contribute to the elimination of blight or deterioration within the area or that the acquisition is necessary to relieve hardship; and 2) there Is a feasible method for the relocation of families and individuals to be displaced by the proposed acqusition. The TIF District would not be established until such time project development would begin. Upon Mr. Schmitz preparation of construction costs, the Peasibility of the redevelopment project must still be analyzed. S. ALTERNATIVE ACTIONS, A motion authorizing BDS to prepare a resolution and public hearing notice for the acquioition of the Kruse Property and requesting City Council hold a public hearing. 2. A motion denying authorization to prepare a resolution and public hearing notice by BDS. Page 1 HRA AGENDA 5-13-92 C. STAFF RECOMMENDATION. If the HRA and Edward Kruse have agreed upon a purchase price and the HRA passed a motion to purchase the property with designated contengencies, staff recommends authorizing BDS to begin preparation of documents. SUPPORTING DATA. None. Page 2 April 30, 1992 Ms. 011ie Kompcha City of Monticello 250 Fast Broadway P.O. Boa 1147 Monticello, MN 55362 STATEMENT Business Development Services, Inc. Consulting Services—March 16, 1992 through April 14, 1992 A=Iaa-Htwti 3/19/92 LPK—Jerry Schon; 011ie; Aroplaa Pmject .75 3/20/92 LPK—Finance Stnicture for Aroplax 1.00 3/24/92 LPK—Follow-up with Modem Moldings .23 4/7/92 LPK—Meeting with Jerry Schoen, Mayor Mans, Jeff O'Neill 3.25 4/14/92 LPK—Letter of Intent; Revisions and Additions 1.512 Total Hours 6.75 Net Chargeable Hours ® 573/Hour 5506.25 TOTAL AMOUNT DUE 5506.25 CURRENT OVER 34 !?%M OVER 5506.25 TERMS: NET DUE UPON RECEIPT, 1.33% PER MONTH SERVICE CHARGE ON PAST DUE ACCOUNTS