HRA Minutes 12-15-1994
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MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
SPECIAL MEETING
Thursday, December 15, 1994 - 7:00 p.m.
City Hall
MEMBERS PRESENT:
Chairperson Al Larson,
Smith, Tom St. Hilaire,
Vice Chairperson
and Brad Barger.
Ben
MEMBER ABSENT:
Everette Ellison.
STAFF PRESENT:
Ollie Koropchak.
STAFF ABSENT:
Rick Wolfsteller and Jeff O'Neill.
1. C~LL TO ORDER.
Ch~lrperson Larson called the special HRA meeting to order at
7:00 p.m.
2. CONSIDERATION TO REVIEW THE INDEPENDENT SE~IOR HOUSING
FINANCIAL PACKAGE.
Koropchak advised HRA members of the proposed financing
package for the senior housing project as discussed at an
afternoon meeting at the off ice of Public Resource Group.
Those in attendance were Dan Lindl, Presbyterian Homes; Rick
Wolfsteller, City Administrator; Steve Bubul, HRA Attorney;
Lenny Kirscht, Public Resource Group, and Koropchak. It is
proposed the City of Monticello adopt a resolution for the
issuance of Revenue Bonds and the HRA adopt a resolution for
creation of a TIP Housing District. The 25--year Housing
District is anticipated to meet the requirements of a
"Qualified Housing District". TIF will be used to assist wi th
si te improvement costs associa ted wi th the senior housing
project. It is anticipated the district will run the entire
25 years. Additionally, it is anticipated the Hospital Board
will sell the two lots, proposed site of the senior project,
to the non-profit organization.
3.
CONSIDERATION TO APPROVE INTERIM FIN~N..9ING FOR THE _lND~PENDENT_"
SENIOR HOUSING PROJECT.
Koropchak advised members of the HRA Statutory as it relates
to HRA members appointed to the Monticello Senior Housing
Alliance, Inc. This poses a conflict of interest as the
Statutory prohibits an HRA member from voting and discussing
the project with staff and other HRA members.
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With only two non-Alliance/HRA members present, no
consideration or action was taken regarding the $40,500
interim financing. Koropchak informed members that according
to Dan Lindl, the lack of any action by the HRA would not
delay the project. Additionally, Attorney Bubul suggested the
HRA not consider the approval of interim financing until after
the Ci ty Council adopted a resolution for issuance of the
Revenue Bonds. Of the estimated $81,000 upfront construction
costs necessary for interim financing, the Hospi tal Board
approved a $40,500 note at a prime inter'est rate pending
participation by the City/HRA. Also, the adopted HRA
resolution authorizing PRG to begin preparation of the TIF
Housing District and Plan will need to be re-adopted.
Tom St. Hilaire asked if he could vote by proxy as he may be
out-of-town on January 11, the next scheduled HRA meeting.
Koropchak will ask Attorney Bubul.
4.
CONSIDERATION TO APPROVE AMENDING THE COMMENCEMENT ~ND
COMPLETION CONSTRUCTION DATES OF THE PRIVATE REDEVELOPMENT
CONTRACT BETWEEN THE HRA AND RONALD S. MUSICH.
The Private Redevelopment Contract between the HRA and Ronald
Munich is technically in-default because construction of the
minimum improvements did not occur by November 20, 1994. The
delay is due to the necessary re-appraisal for bank financing.
The first appraisal was approximately $100,000 under the
proposed project construction and land costs. The land has
been appraised higher than originally and Mr. Musich will
inject additional equity. Bank financitlg has been approved.
The projected tax increment is sufficient to cover the loss of
one-year of increment and still satisfy the TIF budget
according to Lenny Kirscht.
Tom St. Hilaire made a motion authorizing and directing the
proper Authority officials to execute the extension of the
co~nencement and completion dates of the Private Redevelopment
Contract between the HRA and Ronald S. Musich. Ben Smi th
seconded the motion. Upon further discussion of the project
for construction of the 15,000 sq ft manufacturing lof f ice
facility to the east of Suburban Machine & Manufacturing, Tom
St. Hilaire withdrew his motion stating he was unfamiliar with
the project.
Brad Barger then made a motion authorizing and directing the
proper Authority officials to execute the extension of the
commencement and completion dates of the Private Redevelopment
Contract between the HRA and Ronald S. tvIusi ch. Ben Smi th
seconded the motion and with no further discussion, the motion
passed unanimously.
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HRA MINUTES
DECEMBER 15, 1994
5. CONSIDERATION, TO CERTIFY A SUBORDINATION AGREEMENT FOH_]H~
PRIVATE REDEVELOPMENT CONTRACT BETWEEN THE liRA AND RONALQ S,_
MUSICH.
Per the bank's attorney, Marquette Bank requests the HRA
execute a Subordination Agreement for the Private
Redevelopment Contract between the HRA and Musich. The
document under review by Attorney Bubul gives the HRA right of
reversion. Brad Barger indicated the request was a normal
practice of banks for bank and SEA financing. Ben Smith made
a motion authorizing and directing the proper Authority
officials to execute the Subordination Agreement under review
and as amended by Attorney Bubul. Brad Barger seconded the
mot ion and wi th no further discussion, the motion passed
unanimously.
6. OTHER BUSINESS.
Next HRA meeting is scheduled for Wednesday, January 11, 1995.
BRA members will be requested to consider amending the Private
Redevelopment Contract between the HRA and Residential
Development, Inc.
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~DJOURNMENT.
The HRA meeting adjourned at 7:20 p.m.
\JL~~~cP~
Ollie Koropchak, BRA Executive Director
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