HRA Minutes 03-16-1995
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SUMMARY
SPECIAL WORKSHOP MEETING
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Thursday, March 16, 1995 7:00 p.m.
City Hall
HRA MEMBERS PRESENT:
HRA MEMBERS ABSENT:
Chairperson Al Larson and Ben Smith.
Everct tc ElIsion, Tom St. Hi I iare, and
Brad Barger.
CITY COUNCIL PRESENT:
Mayor Brad Fyle, Brian Stumpf I and Tom
Perrault.
Shirley Anderson and Clint Herbst.
CITY COUNCIL ABSENT:
STAFF PRESENT:
STAFF ABSENT:
Rick Wolfsteller and Ollie Koropchak.
Jeff O'Neill.
OTHERS PRE~~ENT:
HRA Attorney Steve Subul.
Planning Commissioners Dick Martie and
Rod Dragsten.
IDC members Ron Hoglund and Jim Fleming.
Hospital Executive Director Barb
Schwientek.
The special workshop meeting was called to order by HRA Chairperson
Al Larson at 7:00 p.m.
Koropchak informed those in attendance that prior to the HRA
authorizing Public Resource Group, Inc. (PRG) to begin preparation
of a TIF Plan for a new TIF District, staff estimates the projected
property tax and the HAC A Penal ty numb:2rs arc calculated, the
developer has a preliminary bank commitment, and the IDC Prospect
Team has visited the existing facility of the developer.
Additionally, the developer must return to the HRA an executed
Preliminary Agreement. submit a $5,000 cashier check, and provide
a copy of the land purchase agreement and a letter stating the need
for TIF (new criteria). Since time, effort, and dollars have been
incurred prior to City Council consideration to approve TIF, it
becomes apparent that cohesive guidelines for use of TIF are agreed
upon by HRA and the City Coune i 1 members. Koropehak a Iso
displayed a copy of a TIF Plan and a Private Redevelopment
Contract.
Attorney Bubul reviewed the process for establishment of an
Economic TIF District and Plan (see attached), outlined the TIF
legislative bills in committees and highlighted uses for pre-May 1,
1990 TIP surplus dollars after outstanding bonds and contracts as
it relates to potential ways to reimburse the City's loss of RACA
with the establishment of post~1992 TIF Districts.
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HRA SUMMARY
MARCH 16, 1995
Pre-May 1, 1990 Surplus Dollars -
Original Bill - Preliminary action by February I. 1995.
Modified Bill Qualified plan by July 1, 1995 (specified
dollars). Same process as TIF Plan.
- Soils District for only contaminated or polluted soils.
- Reduce 25% spending outside Economic Districts to 10%.
-- Housing Districts approved by School District.
- School District Levy.
Criteria: Business to move out-state.<?:D.,Q.. increase tax base
and increase employment in state.
Bill
Bill
Bill
Bill
Bill
Administrator Wolfsteller gave a summary of the HRA Fund and the
TIF-Debt Service Funds and concluded the potential TIF surplus from
all current districts is a little over three million dollars.
Attorney Bubul indicated that pre-la9a surplus dollars can be used
within the Redevelopment Project No. 1 area for any qualified TIF
expenditure. If the proposed legislation becomes law, a qualified
plan must be approved prior to July 1. Perhaps this is a way for
the HRA to reimburse the City for its HACA loss: Earmark
anticipated public improvement projects such as upgrade of Fallon
Avenue I ~'Jastc vJater Treatment Plant, etc. in the budget of the
qualified plan. Dollars may also be used as equi ty into a
Community Center project; however, this is a greater risk as the
project is by referendum and dollars are already specified within
the budget. Communities have established TIP districts to
assistance in financing of community buildings owned and managed by
a non-profit organization.
Thc HACA loss to a city is approximately 30% of the tax increment
of Economic District, which in reality is 17.5% non-TIF monics.
For newly established districts, the 25% public improvements or 10%
adminis.:;tration mU~3t to a11thorized wittlirl the TIF Plarl an.(~ the
public improvements authorized within the City's General Fund.
It appeared to be a general agreement among participants that City
and HRA staff prepare a proposed budget for pre-1990 TIF surplus
dollars to conform with the time-line of the proposed legislation.
HRA Chairperson Larson questioned the use of surplus dollars by the
city as the original TIF Plans were approved by the school, county,
and hospi tal taxing jurisdictions. These taxing j\u'isdictions
agreed to give up taxing dollars for a period of time to cover the
TlF' budget expendi tures; therefore, any surplus dollars beyond
outstanding bonds and contracts, in reality, belongs to all four
taxing jlJrh;dictions: Ci ty, school, county, and hospi tal. This
the original intent of TIF.
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HRA SU~.1~-1ARY
r.1ARCH 16. 1995
Attorney Bubul indicated the qualified plan for use of pre-1990
surplus dollars would be sent to the taxing jurisdictions for 30-
day notice to comment.
Meeting adjourned at approximately 10:00 p.m.
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Ollie Koropchak, liRA Executive Director
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