HRA Minutes 03-02-1994
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MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, March 2, 1994 - 7:00 p.m.
City Hall
MEMBERS PRESENT:
Chairperson Al Larson, Vice Chairperson Ben
Smith, and Brad Barger.
MEMBERS ABSENT:
Everette Ellison and Tom St. Hilaire.
STAFF PRESENT:
Rick Wolfsteller, Jeff O'Neill, and Ollie
Koropchak.
1. CALL TO ORDER.
HRA Chairperson Larson called the HRA meeting to order at 7:00
p.m.
2. CONSIDERATION TO APPROVE THE FEBRUARY 2, 1994 HRA MINUTES.
Ben Smith made a motion to approve the February 2, 1994 HRA
minutes. Brad Barger seconded the motion and with no
corrections or additions, the minutes were approved as
written.
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CONSIDERATION TO ADOPT A RESOLUTION MODIFYING THE
REDEVELOPMENT PLAN FOR REDEVELOPMENT PROJECT NO.1, MODIFYING
THE TIP PLANS FOR TIF DISTRICTS NOS. 1-1 THROUGH 1-'15....,L AND THE
ADOPTION OF THE TIF PLAN FOR TIF DISTRICT NO. 1-16.
Koropchak summarized the TIF District No. 1-16 Plan by stating
the eleven-year District is projected to generate an annual
tax increment of $18,024 for total of $162,216 which will
sufficiently retire the projected District Budget of $80,000.
The 16,640 sq ft manufacturing/office facility to be
constructed on Lot 3, Block 3, OIP has an agreed upon minimum
estimated market value of $400,000 for land and building. The
redeveloper, Schulz Properties, plans to begin construction
May 1 with completion of the minimum improvements by October
I, 1994. One-hundred percent assessable January 2, 1995.
Ben Smith made a motion to adopt the resolution modifying the
Redevelopment Plan for Redevelopment Project No. I, modifying
the TIF Plans for TIF District Nos. 1-1 through 1-15, and the
adoption of the TIF Plan for TIF District No. 1-16. Brad
Barger seconded the motion and with no further discussion, the
motion passed unanimously. The BRA found the project to meet
the Monticello TIF policy, creates 8 new jobs for the state
and retains 12 jobs, increases the tax base of the state, and
discourages a business from leaving the county.
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HRA MINUTES
MARCH 2, 1994
4. PUBLIC HEARING ON THE ACQUISITION AND DISPOSITION OF RAW LANDS
DESCRIBED AS LOT 3, BLOCK 3, OIP, AND THE ADOPTION OF THE
RESOLUTION RELATING THERETO.
Chairperson Larson opened the public hearing on the
acquisition and disposition of raw lands described as Lot 3,
Block 3, DIP. The public hearing notice having been published
in the local newspaper, February 16 and 23, to meet Statutory
requirements.
Wi th no public comment or opposi tion, Chairperson Larson
closed the public hearing and called for a motion. Ben Smith
made a motion to adopt the resolution authorizing the
acquisition and disposition of said raw lands to the Schulz
Properties. Seconded by Brad Barger and wi th no further
discussion, the motion passed unanimously. The project
increases the state's employment and tax base.
5.
CONSIDERATION TO REVIEW AND ACCEPT THE PRIVATE REDEVELOPMENT
CONTRACT BETWEEN THE HRA AND THE SCHULZ PROPERTIES.
Koropchak reviewed the major terms and condi tions of the
Redevelopment Contract which has received a preliminary
acceptance by the Schulz I s attorney. The beginning and
completion construction dates have not been determined;
although, the project will be fully assessable by January 2,
1995. The beginning construction date will be determined upon
bank and SBA financial approval. Marquette Bank has given
preliminary approval; however, in the best interest of the HRA
the original $5,000 will be retained by the HRA until such
time of land conveyance.
Having reviewed and accepted the major terms and conditions of
the agreement, Brad Barger made a motion authorizing the HRA
Chairperson and Executive Director to execute the Private
Redevelopment Contract between the HRA and the Schulz
Properties. Authorization includes any minor changes to the
agreement as recommended by Holmes & Graven, the HRA's Legal
Firm. Al Larson seconded the motion and wi th no further
discussion, the motion passed unanimously.
6. CONSIDERATION TO APPROVE THE MINIMUM IMPROVEMENTS CERTIFICATE
OF COMPLETION AS RELATES TO THE PRIVATE REDEVELOPMENT CONTRACT
BETWEEN THE HRA AND THE BIRKELANDS.
The HRA members reviewed Chairperson Larson, Building Official
Gary Anderson, and Koropchak' s assessment and determination of
Custom Canopy's completion of minimum improvements as outlined
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HRA MINUTES
MARCH 2, 1994
in the agenda supplement. The group toured the facility on
February 14. BRA members were disappointed that the
Redeveloper had made no attempt to correct the minor non-
complied items.
Since the Redeveloper received inconsistent interpretations of
the City Ordinance as to the number of curb cuts allowed per
125 feet of street frontage, Brad Barger made a motion
approving a completion date of the July 1, 1994 for the
following items:
1. Construction of a free-standing paint building and the
screen-fence extended or trees
screening requirement. Or the
extended or trees planted to
requirement.
planted to meet the
existing screen-fence
meet the screening
2. Completion of the lawn-seed germination.
Additionally, the motion included that the Redeveloper take
immediate action to park the semi-truck within the screen-
fenced area; erect the van-accessibility sign and address-
numbers to the outside handicap signage pole and front of
building, respectively; and install a screen-fenced gate to
the southeasternly entrance along Fallon Avenue. A written
notice to be sent to Mr. Birkeland noting that if minimum
improvements are not completed by July 1, 1994, the
Redeveloper is in default of the Private Redevelopment
Contract therebye will not receive the annual TIF assistance
of $7,426.59. The motion was seconded by Ben Smith and with
no further discussion, the motion passed unanimously.
7.
CONSIDERATION TO AUTHORIZE EXECUTION OF THE SIGN LOCATION
LEASE AGREEMENT BETWEEN THE HRA AND WHITECO.
Administrator Wolfsteller informed the HRA that the enclosed
leases are annual leases for the four billboards located on
Outlot A in Country Club Manor. Presently, the City has
drafted a request for proposal and mailed to various
interested developers to encourage an exchange and development
of the property. The returned proposals are due, March 15.
Development interests in multi-housing includes senior
housing, townhouse, and multi.
Ben Smith made a motion authorizing the HRA Chairperson and
Executive Director to execute the Sign Location Lease
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BRA MINUTES
MARCH 2, 1994
Agreements between the HRA and Whi teco.
Barger and wi th no further discussion,
unanimously.
Seconded by Brad
the motion passed
8. CONSIDERATION OF HRA UPDATES:
a)
Public Resource Group, Inc. - Mr. Pelstring was unable to
attend this meeting. The enclosed January-February
billing was to be held without payment until said meeting
between Mr. Pelstring and the HRA.
HRA Purchase Agreement to Ron and Dee Johnson - Enclosed
in the agenda was a copy of the agreement between the HRA
and Jay Morrell for Lot 6, Block 3, OIP. The Purchase
agreement dated February 28 between the HRA and Johnson
was prepared by Holmes and Graven and thereafter mailed
to the Johnsons.
Congregate and Assisted-Living Senior Housing Proposals -.
Koropchak reported that Hospital Executive Director Barb
Schwientek informed her that the Hospital District
Concept Plan for the proposed housing site to the east of
the Monticello Clinic has not been completed by Taylor
Land Surveyors. An unresolved issue between the City and
the District must first be resolved before completion of
the concept plan and thereafter a meeting with interested
developers will be scheduled. At present, Ms. Schwientek
has two developers interested in working with the
District and HRA.
Next HRA meeting, April 6, 1994.
b)
c)
d)
9. OTHER BUSINESS.
Assistant Administrator 0' Neill summarized the enclosed letter
stating there I s no change in the status of the Burlington
Northern property and that 3M Oil and Riverside will renew
their respective annual leases. Additionally, Sunny Fresh is
proceeding wi th their 4,000 sq ft expansion and exterior
screening and upgrading.
0' Niell informed the HRA members of a Planning Commission
Public Hearing scheduled for March 3. The public hearing to
rezone the Kjellberg property from B3, PZR, Rl to B3, B4, BC,
PZM and a concept plan to zone the Kline property to R3 and
Rl. Applicant, Tony Emmerich.
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HRA MINUTES
MARCH 2, 1994
10. ADJOURNMENT.
The HRA meeting adjourned at 8:15 p.m.
GL\(<l\~~
Ollie Koropchak, HRA Executive Director
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