HRA Minutes 11-09-1994
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MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, November 9, 1994 - 7:00 p.m.
City Hall
MEMBERS PRESENT;
Chai rperson Al Larson, Vice Chairperson Ben
Smith, Everette Ellison, and Brad Barger.
MEMBERS ABSENT:
Tom St. Hilaire.
STAFF PRESENT:
Ollie Koropchak.
STAFF ABSENT:
Rick Wolfsteller and Jeff O'Neill.
GUEST:
Bob Murray, Residential Development, Inc.
1. CALL TO ORDER.
Chairperson Larson called the HRA meeting to order at 7:00
p.m.
2.
CONS~DERATION TO APPROVE THE OCTOBER 5, 1994 BRA MINUTES.
Ben Smith made a motion to approve the October 5, 1994 HRA
minutes. Brad Barger second the motion and with no
corrections or additions, the minutes were approved as
written.
3.
CONSIDERATION TO ADOPT A RESOLUTION MODIFYING THE
REDEVELOPMENT PROJECT PLAN AND BOUNDARIES FOR REDEVELOPMENT
PROJECT NO.1, MODIFYING THE TIF PLANS FOR TIF DISTRICT NOS.
1-1 THROUGH 1-17, AND APPROVAL OF TIF PLAN FOR TIF DISTR~CT_
NO. 1-18.
Bob Murray, Residential Development, Inc., explained to HRA
members that City Council tabled the approval of the
annexation because Joe Abbott withdrew his application for
annexation into the City. The Council and Redeveloper
requested additional time to review the application. Joe
Abbott wi thdrew his annexation application becduse of the
potential for no direct access off County Road 75 with the
creation of a media (no left-in & out). This control being
very remote with the potential of a full 1-94 Interchange at
County Road 118. In further conversations with Mr. Abbott, he
of fered to sell the Hawk's Bar property for $500,000 (no
negotiating) to Residential Development, Inc. The Murray's
are not interested as they can proceed wi thout the Abbott
property.
Koropchak reviewed the plan for T1F District No. 1-18,
highlighting the budget of $102,000 for Soils Correction and
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HRA MINUTES
NOVEMBER 9, 1994
$11,333 for Administrative Costs. It is anticipated that the
District will be de"-certified in 1999. Additionally, UIe
resolution for adoption modifies and enlarges of the
Redevelopment Project No.1 Boundaries to include the proposed
District No. 1-18 parcels subject to annexation approval by
the Municipal Board. Lastly, the resolution modifies the plan
for TIF District No. 1-9 and all other plans of existing
districts. The budget of TIF District No. 1-9 is proposed to
increase by $30,000 for Si te Improvements and $2,000 for
Administrative Costs. The proposed 18,000 sq ft manufacturing
expansion will generate sufficient tax increment to cover the
HRA debt and add 15 new jobs to the community.
Ben Smi th made a motion to adopt the enclosed resolution;
however, Chairperson Larson requested separate motions be made
for approval of the plan for TIF District No. 1-18 and for the
modification of the plan for TIF District No. 1-9. Ben Smith
made a motion to amend his first motion and to adopt a
resolution modifying the plan for the Redevelopment Project
No.1, modifying the plans for TIF District Nos. 1-1 through
1-17, and approving establishment of TIF District No. 1-18 and
its plan. The motion was seconded by Everette Ell ison and
with no further discussion, the motion passed 3-1. Yeas: Ben
Smith, Everette Ellison, and Brad Barger. Nay: Al Larson.
Ben Smith made a motion to adopt a resolution modifying the
plan for the Redevelopment Project No.1, modifying the plans
for TIF District Nos. 1-1 through 1-18, specifically the plan
for TIF District No. 1-9. Brad Barger seconded the motion and
with no further discussion, the motion passed unanimously.
Mr. Murray informed commissioners that entry-level
advertisement for twin-homes in Hastings was $79,900 with the
average twin-home sell ing at $93,000. Single--homes ranged
between $115,000 and $120,000. Mr. Murray said timing of the
project may be changed because of the delay in the annexation
process.
Chairperson Larson thanked Mr. Murray for attending the HRA
meeting.
4.
CONSIDERATION TO REVIEW THE FIRST
REDEVELOPMENT CONTRACT BETWEEN THE
DEVELOPMENT, INC.
DRAFT
HRA
OF
AND
THE PRIVATE
RESIDENTIAL
Koropchak highlighted the first draft of the Private
Redevelopment Contract and noted the prepared note to be sold
by the HRA to the Redeveloper at a proposed 8.5% interest
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HRA MINUTES
NOVEMBER 9; 1994
rate. It was the HRA's understanding or intent that the use
of TIF to assist with the reclamation of the mined gravel pit
was an amount not-to-exceed $102,000 flat, no interest nor Net
Present Value. The HRA members recommended the Tax Increment
Revenue Note with interest be deleted from the Contract and to
insert that the Redeveloper assume the responsibility of the
HRA Administrative expenses.
5.
CONSIDERATION TO REVIEW AND TO APPROVE THE PRELIMINARY CONCEPT
FOR USE OF TIF (HOUSING DISTRICT) FOR THE CONGREGATE SENIOR
HOUSING PROJECT.
The HRA members reviewed the proposed senior housing project
with the TIF Policies and determined four of the four criteria
were satisfied. Additionally, they determined the proposed
market-rate congregate facility was consistent with the
results of the HRA Senior Housing Study as prepared by Health
Planning & Management Resources, Inc. (HP&MR); therebye, the
project supports one of the HRA objectives. They determined
the pr"oposed project satisfied the "but for" test, and felt
the proposed project would qualify to meet the requirements of
a Housing District. Al Larson made a motion to approvf~ the
preliminary concept for use of TIF to assist with the
financing of the senior housing project. The motion was
seconded by Brad Barger and with no further discussion, the
motion passed unanimously. Members requested Koropchak
prepare a written informational update informing City Council
of the HRA1s preliminary concept approval for use of TIF to
assist with financing of the senior housing project.
Koropchak informed members that Dan Lindl, Presbyterian Homes;
Lenny Kirscht, Publ ic Resource Group, Inc. (PRG) i Steve Bubul,
Holmes & Graven; and Koropchak scheduled a meeting for Friday,
November 18, 1994, 10:00 a.m. at the office of PRG to discuss
the TIF project and process. Al Larson expressed interest in
attending and requested Koropchak invite Barb Schwientek to
the scheduled meeting.
6. CONSIDERATION TO REVIEW AND TO AUTHORIZE REIMBURSEMENT OF HRA
COSTS ASSOCIATED WITH THE SENIOR HOUSING MARKET STUDY.
A total of $5,600 was disbursed from the HRA General Fund to
pay for Phase I of the Senior Housing Market Study prepared by
HP&MR for the HRA. Brad Barger made a motion authorizing the
$5,600 HRA expenditure be recovered as an Administrative Cost
within the proposed TIF Plan for proposed TIF District No. 1-
19, a Housing District. Al Larson second the motion and
without further discussion, the motion passed unanimously.
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BRA MINUTES
NOVEMBER 9, 1994
7. CONS,;J:DERATION OF BILI!S FROrvl PRG AND HOLMES & m"GR_AVEN~_:-_
HRA members OK'd payment of the October" PRG and Holmes &
Graven bills.
8. ggN~):J2F:RATION OF OTHER BUSINESS.
Koropchdk updated members of new industrial prospects, noted
the letter from the H-Window regarding their plans to cOillplete
the site improvements by June 15, 1995, and noted the
invitation to Mr. Birkeland, O'Neill, and Anderson for
attendance at the November HRA meeting. r.1r. O'Neill had to
Cclncel.
HRA members requested Koropchak compile a list of business
names with exper'tise similiar to PRG for review and potential
interview.
9. ADJOURNMENT.
The HRA meetIng adjourned at 9:00 p.m.
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Ollie Koropchak, HRA Executive Director
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