HRA Minutes 06-06-1995
.
.
.
MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Tuesday, June 6, 1995 - 7:00 p.m.
City Hall
MEMBERS PRESENT:
Chairperson Al Larson, Everette Ellison
(tardy), Tom St. Hilaire, Brad Barger (tardy),
and Roger Carlson.
STAFF PRESENT:
Ollie Koropchak.
1 . Q~LL..__'KQ_.ORD;:B..:.....
Chairperson Larson called the HRA meeting to order at 7:07
p.m.
2. 90NSIDE~ATION TO APP~OVE THE MAY ~~t~95, HRl:Ll~LL.~U'I12~~.
Tom St. Hilaire made a motion to approve the May 15, 1995, HRA
minutes. Seconded by Chairperson Larson and with no
corrections or additions, the minutes were approved as
written.
3.
CON~IDERATION TO ADOPT..A RE.$_QLUTION APPROVING 'I:..t!~MQPIFICATI.9J:L
OF THE TIF PLANS ~OR TIF DISTRICT NOS. ~~..,:,::..!,",., rHROUQ!L..J...::) 9--,_
SPECIF~CA~.~Y_""_"".T1F _DI_$J.'RICT ..~9. 1.....19, ALL.., LOCATED___t{!..'!'l!I~
8!;;1?_EVELOPMENf' P.li.Q}ECT NO.1.
Having previously agreed to a $42,000 budget increase for TIF
District No. 1--19, Tom St. Hiliare made a motion to adopt the
resolution approving the modification of the TIF Plans for TIF
District Nos. 1-1 through 1-19, specifically the Plan for TIF
District No. 1-19, all located within the Redevelopment
Project No.1. Brad Barger seconded the motion and with no
further discussion, the motion passed unanimously. The HRA
modified the budget to allow 90% of the tax increment to be
spend on the senior housing project. Secondly, the 10%
Administration provides dollars for HRA administration costs
andlor allows the HRA the flexibility to pay the estimated
HACA Loss to the City if for some reason, in any given year
during the life of the district, the project does not meet the
requirements of a "Qualified Housing District".
4 . Q.Q.~_~g!.~RA,!,_~gR__~O. ADOPT A RESOLUTION APPROVING THE ...J-=B_.:J;,y."~r.~u
lSg_DEVELOPMENT CONTRA_Q-,!:_ BET~vEEN THE HRA..,L_.._I!:t;;..._9_IIXL__A~,12_
rR~~J3.YTE~IAN ->>or.1E~_IiOUSING AND ASSIS,!,ED J;!..IV1.:.~_CL-INC ~_L_'!:!.!~...
g!{l'J~;!'!P E D LOW - IN COME H 0 Q. S I .N~S_9J1M.LTMJ~.NT ~G RE ~l'1F.;N'L.j)E '!:~~~~N__l'Hg,_
tlRA....blW PBM; _AND THE SQ~ORDI.NATION AGP~EEMENLN.:tQ~G_ THE HRA,
THE CITY, AND THE TRUSTE~;._
In April,
Director
the HRA authorized its Chairperson and Executive
to execute the Private Redevelopment Contract,
Page 1
.
.
.
HRA MINUTES
JUNE 6, 1995
Extended Low'.Income Housing Commi tment Agreement, and the
Subordination Agreement as outlined and subject to no major
changes or surprises.
Since the Monticello Senior Housing Alliance approved the
transfer of Mississippi Shores ownership to Presbyterian Homes
Housing and Assisted Living, Inc., Attorney Bubul and
Koropchak agreed that constituted a major change. The HRA was
informed of three major changes to the contract: New
ownership, City agrees to construct the public improvemcnts
and PHM agrees to reimburse the City for the public
improvement costs 3D-days from receipt of invoice, and the HRA
agrees to reimburse the City for any HACA Loss during the life
of the district.
Under the new ownership and the additional equity, the project
cash f low is increased and rental t'ates are x'educed. Hi th
additional guarantees, the % af upfront rental commitments is
reduced thercbye allowing the project to proceed. PHM also
provides expertise in the area of senior housing management.
Brad Barger made a motion to adopt the resolution approving
the Private Redevelopment Contract among the HRA, City, and
PHM; the Extended Low-Income Housing Commi tment Agreement
between the HRA and PHM; and the Subordination Agreement among
the HRA, Ci ty, and Bond Trustee. Al Larson seconded the
motion and wi th no further discussion, the motion passed
unanimously.
5.
gONSIDERATION OF A TIF LEGISLATIVE UPDATE AND rJi~_ A?..!:~BQYAL .1.Q_
WI_T_liDRAt"i M,QJ2.IFICATIOlL..9LJ'IF PLANS FOR TlLDI~TH...Ig_'L.E9~,:..-L-l_"
:rHFiOUGH "_."t:~
As a result of the no Legislative action regarding pre-1990
TIF dollars and per the advised of Attorney Bubul, there was
no immediate need to put a "qualified plan" or contract in
place in order to lock-in the use of existing incx'ement
meaning pre-1990 surplus TIF dollars.
Korapchak reported, after the May HRA authorization,
Administrator Wolfsteller was informed to retire the HRA (the
"Borrower") loan of $90,678 at 8% interest rate for Lots 5 &
6, Block 3, OIP, to the City of Monticello (the "Lender").
Loan retirement payment from the TIF Surplus Fund. HRA
members requested Koropchak verify that the transaction waG
completed.
Page 2
.
.
.
HRA MINUTES
JUNE 6, 1995
Tom St. Hilaire made a motion to withdraw the modification of
TIF Plans for TIF District Nos. 1-1 through 1,-11. Everette
Ellison seconded the motion and with no further discussion,
the motion passed unanimously. The approved motion allows the
HRA both f lexi bi 1 i ty and addi t ional time to consider the
expenditure of the approximately $3.5 million dollars of TIF
surplus dollars.
6. 90NSIDERATIQ_N OF A COST ESTIMATE FOR THE MpDIFICATION OF p_LA_r~s_.
:[OR REDEVELQE~JlEl'!I.-r.!"WJECT NO. 1..JtND TI~
HRA members reviewed the letter submitted by PRG estimating
the cost of modification, including notices, di:3tribution,
resolutions, and cash flm'l analysis, in 15-20 hours of PRG
professional staff time, or $1,350 - $1,800. PRG anticipated
this cost to accommodate the modification of more than one
district; however, suggested PRG be allowed to quote a price
in advance.
Under normal circumstances, Holmes & Graven should not be
involved in a modification. This an informational item in
response to a question by the BRA, no action was required nor
taken by the HRA.
'7
. .
CONSIDERATION OF A LEGAL OPINION .FROM H.B:IL..ATT9RN~:LJ?11~Q.~~_
This an update of the request by the HRA for
relating to the addition of a nineth criteria
policies: The project shall be deemed
community involvement and/or encourage local
a legal opinion
to the local TIF
to demonstrate
residency.
Attorney Bubul will have a response for the HRA at the July
meeting. No action was required nor taken by the HRA.
8. CONSIDERATION TO NOMINATE AND ELECT A VICE--CHAIRPERSON OF _ Tli~
HRA.
-~-
Tom St. Hilaire nominated Brad Barger for the Office of Vice
Chairperson of the HRA. Al Larson seconded the mot ion and
with no other nominations from the floor, nomination ceased.
The motion passed unanimously electing Brad Barger as HRA Vice
Chairperson.
9. OTHER BUSINESS.
a)
Consideration of monthly bills
payment of the May 20 and 22, 1995,
& Graven.
The HRA authorized
bi 11 illgS from Holmes
Page 3
.
.
.
HRA MINUTES
JUNE 6, 1995
b) Copy of letter from Brad Larson - HRA members requested
Koropchak telephone Brad as a follow-up to the letter.
c} Other - none.
10. ADJOURNMENT.
The BRA meeting adjourned at 7:30 p.m.
o9~pc~~\~~ector
Page 4