HRA Minutes 06-01-1994
.
.
.
MINUTES
HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, June I, 1994 - 7:00 p.m.
City Hall
ME~1BERS PRESENT:
Chairperson Al Larson, Ben Smi th, and Brad
Barger.
MEMBERS ABSENT:
Everette Ellison and Tom St. Hilaire.
STAFF PRESENT:
Ollie Koropchak.
STAFF ABSENT:
Rick Wolfsteller and Jeff O'Neill.
1. CALL TO ORDER.
Chairperson Larson called the HRA meeting to order at 7:00
p.m.
2. CONSIDERATION TO APPROVE THE MAY 4, 1994 HRA MINUTES.
Ben Smi th made a mot ion to approve the May 4, 1994 BRA
minutes. Seconded by Brad Barger and wi th no addi tions or
corrections, the minutes were approved as written.
3 .
CONSIDERATION TO APPROVE THE PRELIMINARY CONCEPT FOR USE OF
TIF ASSISTANCE FOR THE FAY-MAR METAL FABRICATOR PROJECT.
John McVay, Bill Enders, and Koropchak visited the company's
existing facility in Blaine on May 26. Jack Taly, Operations
Manager, gave a tour of the production area which is housed in
three small buildings. The company definitely operates under
a lack---of-space constraint as workers duck to avoid being
struck by metals during production and storage of raw and
finished materials are moved from inside to outside daily.
Some company accounts are Wagner and Grayco.
PRG sees the project as doable; however, bank commitment is
yet to be determined. Mr. Munich toured SMM facility.
First, Koropchak informed HRA members that Ron Musich, Fay-Mar
Metal Fabricators, requested the HRA consider allocating
$50,000 of TIF surplus dollars to wri te-down the purchase
price of the Pfeffer building at 9530 Fallon Avenue Northeast.
Purchase price, $480,000. Public purpose to make use of an
under-utilized industrial building and to create jobs. Brad
Barger made a motion denying the use of TIF surplus dollars
for the purchase of an existing building. Denial due to the
HRA's lack-of-ability to recover the surplus-loss and to avoid
setting a precedents. The motion was seconded by Ben Smith
and with no further discussion, the motion passed unanimously.
Page 1
-
.- -.
-r- ____
- .-
.
.
.
HRA MINUTES
JUNE 1, 1994
If the HRA elected not to assist with the purchase of the
existing Pfeffer building, Mr. Munich plans to construct a
15,000 sq ft facility on 3 acres of the Monticello Commerce
Center property. The project is estimated to generate
approximately $19,500 in annual taxes and based on collection
of taxes over 9 years, the increment appears more than
sufficient to assist with the write-down of land. Proposed
upfront TIF assistance is $50,000. Projected purchase price
of the land is $75,000 for three acres. Seventeen immediate
full-time jobs and a projection of 8-13 additional jobs within
2 years.
The financial proposal prepared by
$273,000; SBA, $222,000; Up-front TIF,
$10,000 for a total $555,000 project.
PRG includes Bank,
$50,000; and equity,
The HRA agreed with the preliminary concept plan. Subject to
bank commitment and upon receipt of the executed Letter of
Intent, $5,000 cashier check, and copy of the purchase
agreement; Brad Barger made a motion to adopt a resolution
authorizing Public Resource Group, Inc. to begin preparation
for the creation of TIF District No. 1-17. The motion was
seconded by Ben Smi th and wi th no further discuss ion, the
motion passed unanimously.
4. CONSIDERATION TO APPROVE THE EXECUTED CERTIFICATE OF
COMPLETION FOR THE DEMEULES FAMILY LIMITED PARTNERSHIP.
Ben Smith made a motion to approve the executed Certificate of
Completion for the Demeules Family Limited Partnership. Brad
Barger seconded the motion and with no further discussion, the
motion passed unanimously. The certificate was executed by
HRA Chairperson Larson and Executive Director Koropchak on May
26, 1994, after the occupancy permit for the 52,000 sq ft
office/manufacturing facility had been issued by the City
Building Official. To avoid the need for an HRA subordination
agreement for the SBA real estate closing on .June 1, the
certificate was executed and filed at the County Recorder's
Office prior to HRA approval.
5. CONSIDERATION OF HRA UPDATES:
a)
In addition to the enclosed prospect updates, Koropchak
noted the enclosed proposal submi tted to Royal
Engineering. The company was visited by the same IDe
group on May 26 and the company was found to be one
Monticello would be proud to have. TIF assistance was
proposed at $86,600 based on the construction of a 25,000
Page 2
.
.
.
HRA MINUTES
JUNE 1, 1994
sq ft Fabcon office/manufacturing facility. Immediate
employment 25 with the projection of another 25 within 2-
3 years. HRA members agreed to the outlined purchase
price of $14,000 per acre for the HRA lot. The company
officials had a lukewarm reading for Monticello because
of the potential loss of their trained or skilled workers
by relocating out so far.
b) HRA members were informed that at the upcoming June 6
Hospital Board meeting, a date would be set for the four
congregrate and assisted-living presentations. The
presentation meeting will be a joint meeting between the
Hospital Board, HRA, and City Council.
c) HRA members elected to table any discussion for the need
to establish a TIF level-of-assistance guide or range.
The item was tabled in order to allow for full-membership
attendance and discussion.
6. CONSIDERATION OF HRA FOLLOW-UPS.
Follow-ups were accepted without questions.
7.
OTHER BUSINESS.
Chairperson Larson informed Koropchak he would be out-of-town
for a week in mid-June.
8.
ADJOURNMENT.
The HRA meeting adjourned at 7:45 p.m.
o~ "<d)
-~
Page 3