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HRA Minutes 12-07-1994 . . . MINUTES MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY Wednesday, December 7, 1994 - 7:00 p.m. City Hall MEMBERS PRESENT: Chairperson Al Larson, Vice Chairperson Smith, Tom St. Hilaire, Brad Barger, Everette Ellison (tardy). Ben and STAFF PRESENT: Jeff O'Neill, Koropchak. Gary Anderson, and Ollie STAFF ABSENT: Rick Wolfsteller. GUEST: Stephen Birkeland, Jr., Custom Canopy, Inc. 1. CALL TO ORDER. Chairperson Larson called the HRA meeting to order at 7:00 p.m. 2. gON?IDEMT!O~ TO~J'PROVE TlfE.;_NOVEMBltR~__t994,. HR~_~.lNq1'~_~.;.... Brad Barger made a motion to approve the November 9, 1994 HRA minutes. Seconded by Ben Smi th and wi th no addi tions or corrections, the minutes were approved unanimously as written. 3. go N ~IQ1~J!.Jl.I 10 fi_1Q_._D I S C u ~?_1:!I~_b E T_T ER R ~_~~ I VE IL...J'_13 0 M S T !';.~~~.~.. E.J~KEj:.Ar~.n?.J.._.IB~AN.P REC O.f'JS I Q.gBA TXO N 9L.:n.:!}L. P A X.:J~;S - Y QY - G 0 _~Il_If_ AS~ISTANCE, Koropchak rei terated the prepared agenda supplement describing the HRA's action and the November 9, 1993 to November 9, 1994 correspondences with Stephen Birkeland, Jr. relating to compliance and non-compliance with the Private Redevelopment Contract. As of a few days ago, the required screened area still remained unscreened and the permanent Occupancy Permit was not issued. Mr. Birkeland said the small building under-construction would be completed in a couple of days. Jeff O'Neill responded that during the project planning stages Mr. Birkeland was not around and staff was told by Jim Bubl there would be no outdoor-storage. Secondly, O'Neill apologized for the misinformation regarding the curb cut allowance. Thirdly, the delayed request for a variance became apparent upon the need for outdoor-storage. Fourthly, on November, 1993, the Ci ty Council lowered the screen-'fence height from 8 feet as recommended by the Planning Commission to 6 feet or at such time the stored-items exceed the height Page 1 . . . HRA HINUTES DECEMBER 7, 1994 of the screened-fence, the stored-items must be removed or the fence height increased. Next, O'Neill presented two concerns shown via photos taken this summer (1994). One, the required screexu::!d"-fence area uncompleted and the gates remain unclosed. Lastly, the access points of the second drive-way along Fallon Avenue must be hard-surfaced and widened. Mr. Birkeland was not notified of this latter concern. Gary Anderson anticipates issuance of the permanent Occupancy Permi t to occur next week upon complet ion of the small structure. Pending completion of the required screened-fence area, issuance of the permanent Occupancy Permit within the month, and completion of the hard-surface and increased width of the second drive-way along Fallon Avenue by July 30, 1995, Tom St. Hilaire made a motion for the HRA to reinstate the pay-as-you- go TIF assistance as outlined in the Private Redevelopment Contract between the HRA and the Birkelands. Brad Barger seconded the mot ion. Koropchak reminded Mr. Bi:r'keland that the required screened-fence area includes completion of the small building, fencing completed up to the buildings, and the closure of the gates to comply with the City Zoning Ordinance: screening of right-a-ways. With no further discussion, the motion passed unanimously. 4 . _QQJ:lSID~J~ATION TO__ADOPT_L RE;.SOLUTION___.AtJTHORIZING _ PUBLIC ]\E,SQY,BCIL. GRQ.PP , INC. T2.._PREPARE~._TIF I:k[\.lL_Rl3;J.,ATING TO THE .g_::?]A~bISHM_ENT_,_OF TIF 1?.J2J'jiICT NO. 1- t~_~_!iOUS I.NG D1 ~TRICL Koropchak highlighted the content of the enclosed resolution for adoption. In addition to authorizing PRG and Holmes & Graven to begin preparation of the plan and contract, the resolution states the HRA agrees to waive the receipt of the TIF Preliminary Agreement and the $5,000 Cashier Check, and agrees to allocate the estimated $7,500 PRG and Legal fees and the previous $5,600 Health Planning & Management Resources, Inc. fees as Administrative Costs of the Housing District Plan. Koropchak emphasized that staff is non-supportive of the use of TIF to assist with the land write-down of the two proposed lots because of the close proximity to the Waste Water Treatment Plant and the potential release of odors. Staff is supportive of using TIF for the senior project; however, not for land wri te~down at this particular' si te. HRA members Page 2 . HRA MINUTES DECEMBER 7, 1994 received a copy of the letter addressed to OIly Krahl from Kelsie McGuire responding to Krahl's telephone call of November 10, 1994, and a copy of the Monticel~g_":rll!}"~~_article which prints Mrs. Krahl's comments made during a Haspi tal Board meeting. Chairperson Larson reported the Alliance had discussed the issue and have requested the architect incorporate special filters into the design of the building to decrease the potential intake of outside odors. The Alliance views the number of reported odors (5-6 times annually) from the Waste Water Treatment Plant as insignificant. . O'Neill reported the cost of upgrading the treatment plant is estimated at 1.5 million dollars. To expand the facility at its existing location would cost an estimated 8.4 million and to relocate the facility would cost approximately 50% more. If the Kruse property were acquired and the existing plant expanded, the capacity of the expanded plant would meet the projected community growth for many years. O'Neill continued stating the City Council will hold a Public Hearing in January relating to the completed study and the future of the Waste Water Treatment Plant. BRA members encouraged staff not-to-be shortsighted and to weigh the long-term economic and environmental benefits of a plant relocation. Brad Barger made a motion to adopt the enclosed resolution authorizing PRG to prepare a TIF Plan relating to TIF District No. 1-19, a Housing District and as stated. Everette Ellison seconded the motion and with no further discussion, the motion passed unanimously. The HRA viewed the potential odors from the Waste Water Treatment Plant as insignificant as it relates to the use of TIF and the proposed site of the senior housing project. 5. CONSIDg,f(ATION "TO REVIEW AND APPROVE THE SECOND D~A~T.-Q.~_"TJi.~ PRIVATE REDEVELO?MENT CQ.NTRAgT. BETWEEN THE HRA",_ANP RESII:!"~~j:'IJH~_ DEVELOPMENT, INC. AND ADOPT THE. RESOLUTION RELATING TH]B~~~ The enclosed resolution, prepared by Attorney Bubul, approves the contract in substantially the form presented and authorizes and directs HRA officials to execute the contract. Adoption of the resolution is subject to final annexation and allowance for some minor modifications to the contract. The contract for approval includes no note with interest as originally prepared. However, the HRA's administrative costs relating to District No. 1-18 remain as an expense of the TIF . Page 3 . . . HRA MINUTES DECEMBER 7, 1994 Surplus Fund. Koropchak stated that Attorney Bubul viewed the request by the HRA as somewhat unreasonable in relationship to the amount of TIF assistance (not-to-exceed $102,000). The contract includes the soil corrections must be commenced and completed concurring with the Phase I development and as approved by the City Engineer. The contract outlines the four phases, commencement and completion dates of each phase, and minimum estimated market value of single and twin-homes and commercial developments in each phase. TIF payment to begin August 1, 1998 and to end February 1, 2000. TIF payment is also subject to the development complying with the Subdivision Agreement. A Certificate of Completion is issued dfter completion of each phase. The contract has been submitted to Attorney Jim Casserly; however, the HRA has heard no reply. Tom St. Hilaire made a motion to adopt the enclosed resolution approving the Private Redevelopment Contract between the HRA and Residential Development, Inc. in substantially the form presented. Ben Smith seconded the motion and with no further discussion, the motion passed unanimously. 6. CONSIDERATION TO REVIEW AND APPROVE TH~ FIRST_DRAFT OF THE AMENDMENT TO THE PRIVATE REQEVELOPMENT_CONTRACT BETWEEN THE BRA.AND WILLIAM AND BARABARA TAPPER AND ADOPT ..1BE RESOLU_I,IQ.N HELAJ:l,NG THERETO. The enclosed resolution, prepared by Attorney Bubul, approves the amendment to the original Private Redevelopment Contract between the HRA and the Tappers in substantially the form presented. Additionally, it authorizes and directs HRA officials to execute the contract subject to allowing for some minor modifications. The amendmerlt states the redeveloper will construct a 18,000 sq ft manufacturing facility (the "Additional Improvements"). Construction commencing May 1, 1995 and completion by December 31, 1995. The BRA will reimburse the redeveloper $30,000 for site improvements: excavation, landscaping, and curb construction necessary for the development of the additional improvements. Reimbursement upon 90% completion of the additional improvements and certification by an independent architect. The annual TI Guarantee increases from the original $26,000 to $34,500. The Assessment Agreement's minimun estimated market value will increase from $750,000 to $1,175,000. Ben Smi th made a motion to adopt the enclosed resolution Page 4 . . . BRA MINUTES DECEMBER 7, 1994 approving the amendment to the Private Redevelopment Contract between the HRA and William R. Tapper and Barbara R. Tapper in substantially the form presented. Brad Barger seconded the motion and wi th no further discussion, the motion passed unanimously. 7. CONSIDERATION OF BRAD BARGER ],'.0 ACCEPT REAPPO~~TMEJ~:I,"",TO__I!!"~,,, FIVE:-YE~..B_J:J:RA COMMISS IQJi.F:R ,pas ITION . The HRA commissioll seat with the expiration term of December, 1994, is occupied by Brad Barger. Mr. Barger accepted re- appointment to the five-year term. Other HRA members reviewed their respective term dates. Ben Smith made a motion of HRA endorsement and recommendation to the City Council for the re~ appointment of Brad Barger for a five-year BRA term. Al Larson seconded the motion and with no further discussion, the motion passed unanimously. 8. OTHER BUSINESS: HRA members reviewed the prepared informational items and accepted the written report. Koropchak reported in addition to the supportive data relating to Brad Larson's letter, Mr. Wolfsteller continues to research the matter. However, it appears the City has an easement for ingress and egress. Although the property lies within Redevelopment TIF District No. 1-2 and since it appears the Ci ty has an easement, the BRA recommended the conf ict be resolved between Mr. Brad Larson and the Post Office. Additionally, the HRA suggests a letter be addressed to Mr. Larson stating the BRA reviewed the request and their initial recommendation. The HRA authorized payment of November bills from Holmes and Graven and PRG, with the exception the TIF District No. 1-9 Modification. The HRA requested an itemized statement prior to payment. Tom St. Hilaire expressed his satisfaction with Pat Pelstring with the exception of the H-Window expansion. The HRA inquired of the progress to compile a list of other TIF creation agencies for review. Koropchak indicated she had received a resume from Publicorp, Inc. Page 5 . . . HRA MINUTES DECEMBER 7, 1994 9. ~DJOURNMENT. Al Larson made a motion to adjourn the HRA meeting. Tom St. Hilaire seconded the motion and with no further discussion, the meeting adjourned at 9:15 p.m. O~\<~~~~ Ollie Koropchak, HRA Executive Director Page 6