HRA Minutes 02-06-1995
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MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Monday, February 6, 1995 - 7:00 p.m.
City Hall
MEMBERS PRESENT:
Chairperson Al Larson, Vice Chairperson Ben
Smith, Everette Ellison, Tom St. Hilaire. and
Brad Barger.
STAFF PRESENT;
Ollie Koropchak.
STAFF ABSENT:
Rick Wolfstcller and Jeff O'Neill.
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CALL TO ORDER.
Chairperson Larson called the HRA meeting to order at 7:00
p.m.
2.
CONSIDERATION TO APPROVE THE JANUARY 11 AND JANUARY 2
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HRA MINUTES.
1995
Ben Smith
minutes.
additions
written.
they Here
made a motion to
Everet te Ell ison
or corrections,
Approval of the
not submitted.
appove the January 11, 1995 HRA
seconded the motion and with no
the minutes were approved as
January 26 minutes was tabled as
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PUBLIC HEARING AND AUTHORIZATIO~,_g:f_'!'H~A9QY~~_~!~g_r-J AND
DISPOSIT ON OF LANDS RELATING TO TIF DISTRICT NO. 1-19.
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Vice Chairperson Smith requested HRA members Everette Ellison
and Tom St. Hi laire consider this agenda item. This for
compliance with the executed Disclosure and Abstention
Statements.
Since the public hearing notice for the acquisi tion and
disposition of lands was published and since a financial gap
exists for the construction of the the senior project,
Attorney Bubul recommends continuation of the public hearing.
The Hospital Board must consider donation of the land and all
entities must consider a low-interest loan to make the senior
project cash flow and to obtain acceptable rent rates. Barb
Schwientek! Hospi tal Execut i ve Director. is ant icipated to
return the 9th of February. With the approved HRA-TIP
assistance of $220,830 on January 26 which excludes land
acquisition and contingent upon the Hospital Board donating
the land, no HRA public hearing would be necessary.
With no opposition from Ellison or St. Hilaire. Vice
Chairperson Smith called to continue the public hearing of the
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Gcquisition and disposition of lands relating to TIF District
No. 1-19 until March 1, 1995, or upon a special meeting.
Everette Ellison will be out-of-town after February 24 and Tom
St. Hilaire will be out-of-town the first week in March.
4 .9()~L?IPE ~AT I QHI9.J:.? PRO V E C H AN g~~_.!9 ... T H Ep 13- I YAIE. f{~p ~ V~J:,9r.~E~lT
99JSTf{J:.gT.$~ '!'Jig~f'J.'!'Jl~ .. HRA_Af'J'PRI;:~IP~NJ'IJ:.J:,_PI;:Y;:J:,qpt'II~!'J"1'_!. ..~. ~C .
Koropchak outlined the major changes to the Private
Redevelopment Contract approved by the HRA on December 7. The
negotiated changes include a reduction of the estimated market
value (EMV) by $782,400, this caused by the deletion of the
development of the commercial properties. The anticipated
decertification date is extended by two years or to 2003. The
$102,000 pay-as-you-go payments will be paid upon a percentage
of the avai lable tax increment and upon meet ing a minimum
market value and rrumber of units-constructed criteria within
the phased development. The developer could receive the full
assistance prior to final completion of the housing
development; however, the restoration of the gravel pit would
be accomplished as HRA payments also require evidence of soils
correction work completed and certification of payment.
Tom st. Hiliare made a motion to approve the negotiated
changes to the Private Redevelopment Contract between the BRA
amd Residential Development I Inc. Total minimum EMV of
$16,275,000, construction of 67 single-homes and 48 twin--
homes, and anticipated decertification of TIF District in
2003. TIF assistance disbursed as outlined in the above
paragraph. Everette E11ison seconded the motion and with no
further discussion, the motion passed 4--1. Year3: Tom St.
Hilaire, Everette ElIsion, Ben Smith, and Brad Barger. The
use of TIF was approved for the sole purpose to assist with
the restorat ion of an unsafe gravel pi t. Nay; Al Larson.
Site grading anticipated to begin in March,
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CONSIDERATION TO REVIEW FOR APPROVAL THE PRELIMINARY CONCEPT
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Based on the assumption the developer Hould construct a 15,000
sq ft metal (steel frame) office/manufacturing facility with
exterior brick trim, the estimated annual taxes is $16,000.
The project would generate a total tax increment of $144,000
and th:::> HACA Loss is $48,200. Twenty-five percent of the
increment can be expended outside the TIF District for public
improvements to offset the city's loss if the public
improvements were earmarked in the City's General Fund.
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HRA MINUTES
FEBRUARY 6, 1995
Suggested TIF assistance is $40,000 (NPV @ 8%), pay-as-you-go
method for land write--down.
Currently Quality Welding has 6 jobs at $8.25 per hour and
estimates the addition of 7 jobs at $9.50 by 1997. And
currently, Ragen Corporation has 4 jobs at $8.50 and estimates
the addition of 8 jobs at $10.00 by 1997. The company does
precision welding and fabricating for prototypes and
production.
The company is looking at 2.8 acres to the north of the
unoccupied Pfeffer building along Fallon Avenue. The
developers were notified of the need to provide the HRA with
a letter relating to the "but for" test. The company is in
the process of securing bank funding. This is a preliminary
concept approval only because no credit analysis of the
company financials has been completed.
Based on assumptions and the estimated number of manufacturing
jobs, Ben Smith made a motion to approve the preliminary
concept for use of TIF, pay-as-you-go method. Tom St. Hilaire
seconded the motion and with no further discussion, the motion
passed unanimously.
c:
v.
OTHER BUSINESS.
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a) No bills for approval.
b) One proposed TIF bill before the Legislators could
sharply limit the use of surplus dollars from pre-May 1,
1990 districts, if a City or HRA has not issued bonds or
entered into contract prior to February I, 1995.
c) It was suggested that a letter of Monticello's interest
in economic development be written to Komo Manufacturing,
St. Cloud.
7. ADJOURNMENT.
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The BRA meeting adjourned at 7:50 p.m.
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