HRA Minutes 02-02-1994
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MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, February 2, 1994 - 7:00 p.m.
City Hall
MEMBERS PRESENT:
Chairperson Al
Smi th ( tardy) ,
Barger.
Larson, Vice-Chairperson Ben
Everette Ellison, and Brad
MEMBERS ABSENT:
Tom St. Hilaire.
STAFF PRESENT:
Ollie Koropchak.
STAFF ABSENT:
Rick Wolfsteller and Jeff O'Neill.
GUEST PRESENT:
Todd Schulz, President, and Roy Schulz,
General Manager, Polycast Mfg.
1. CALL TO ORDER.
Chairperson Larson called the HRA meeting to order at 7:00
p.m.
2. CONSIDERATION TO APPROVE THE DECEMBER 1, 1993 HRA MINUTES.
Chairperson Larson made a motion to approve the December 1,
1993 HRA minutes. Seconded by Everette Ellison and with no
corrections or additions, the minutes were approved as
written.
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CONSIDERATION TO ELECT HRA OFFICERS:
CHAIRPERSON.
CHAIRPERSON AND VICE-
Brad Barger nominated and made a motion to elect Al Larson as
HRA Chairperson. Seconded by Everette Ellison and with no
other nominations or further discussion, the motion passed
unanimously.
Al Larson nominated and made a motion to elect Ben Smith as
HRA Vice-Chairperson. Seconded by Everette Ellison and with
no other nominations or further discussion, the motion passed
unanimously.
4. CONSIDERATION TO ADOPT A RESOLUTION AUTHORIZING EDS, INC. TO
BEGIN PREPARATION OF TIF DISTRICT NO. 1-16 FOR POLYCAST MFG.
INC.
Todd and Roy Schulz informed and responded to questions of HRA
members. Currently, Polycast is running two 50-hour week
shifts. The company manufactures safety products as used on
bobcats and medical products. Pattern design is farmed out
wi th tooling completed by Polycast. The company utilizes
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HRA MINUTES
FEBRUARY 2, 1994
rigid plastic which cannot be reused, therefore, solid waste
must to hauled to landfills.
The company's gross sales of over 1.3 million dollars
surpassed their projections. The year-end financial
statements indicated an accounts receivable reduction from
1992 to 1993. Roy Schulz responded that for tax purposes the
year-end statements indicate deferred billings. The company
plans to hire more skilled workers with the expansion, their
customer base is mostly out-of-state, and their marketing is
predominantly by word-af-mouth of engineers. The 16,640 sq ft
office/ production/storage, all-steel support Lester building
has an estimated construction cost of $23.80 per sq ft. The
metal facility will have exterior trim on three-walls and has
no outside storage except for parking of vehicles. The HRA
viewed the preliminary building drawings.
With receipt of the $5,000 company check, copy of the purchase
agreement for Lot 3, Block 3, OIP, the executed Letter of
Intent, and the project having previously been determined in
compliance with the Monticello TIF policies; Chairperson
Larson called for a mot ion. Brad Barger made a mot ion ta
adopt the resolution authorizing BDS, Inc. to prepare the TIF
Plan for TIF District No. 1-"16, calling for a public hearing
on the acquisition and disposition of raw lands, and
requesting City Council call for a public hearing for the
adoption of the TIF Plan. Ben Smith seconded the motion and
wi th no further discussion, the motion passed unanimously.
The HRA members congratulated and welcomed Polycast Mfg, Inc.
to Monticello.
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CONSIDERATION TO REVIEW FOR DISCUSSION THE HRA/JOHNSON
CORRESPONDENCE REGARDING THE POTENTIAL SWAP OF LOT 5 AND LOT
6, BLOCK 3, OIP.
For the purpose of encouraging business retention and
expansion, the HRA members recommended, first, an agreement be
drafted and executed between the HRA and Jay Morrell. The
agreement to affirm Mr. Morrell's intent to purchase Lot 6,
Block 3, OIP from the HRA at no expense to the HRA. Secondly,
upon execution of the first agreement, a purchase agreement be
prepared and submitted from the HRA to Ron and Dee Johnson.
Said purchase agreement to set conditions protecting the HRA
against environmental issues and the necessity for a completed
survey.
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HRA MINUTES
FEBRUARY 2, 1994
6. CONSIDERATION TO REVIEW THE BDS, INC. BILLINGS AND THE
CONTRACT BETWEEN THE HRA AND BDS, INC.
Koropchak informed HRA members that the 2.5 hours for
preparation and attendance at the September HRA has not
recei ved acceptance by BDS nor the HRA' s account received
credi t . Addi t ionall y, Koropchak indicated the January 11
billing of $37.50 is for document closing for Standard Iron
and the H-Window which are both not~to~exceed contracts. The
HRA recommended not paying the January 11 statement, requested
Mr. Pelstring attend the March HRA meeting, and Koropchak
prepare a detailed report of concerned issues.
7.
OTHER BUSINESS.
a) Custom Canopy - The meeting scheduled for January to
assess the completion of minimum improvements at Custom
Canopy was rescheduled for February 14. This to meet the
schedule of all parties involved.
b) HRA March 2, 1994 meeting - Koropchak reported that Barb
Schwientek is screening potential congregate and
assisted-living developers. Selected developers will
give presentations at the HRA March meeting. HRA members
requested a special meeting be called to hear the
presentations, perhaps March 9. Mr. Ellison indicated he
would be out-of-town through the end of March.
c) TIF-Legislative Issue ~ Koropchak asked HRA members of
their wishes to endorse or not endorse the continued use
of Tax Increment Financing. Upon Mr. Barger's input that
TIF is an important financial tool and may even be
"crucial" at times because front-up TIF can serve as
equity in financing the expansion, the HRA elected to
endorse the continued use of TIF for industries.
8. ADJOURNMENT.
The HRA meeting adjourned at 8:35 p.m.
c:J~ ~d'\~~~
Ollie Koropchak, HRA Executive Director
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