HRA Minutes 09-06-1995
.
.
.
MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday: September 6, 1995 - 7:00 p.m.
City Hajj
MEMBERS PRESENT:
Chairperson Al Larson, VIce Chairperson Brad
Barger: and Rogor Carlson.
r/(EMBERS ABSENT:
Everette Ellison and Tom St. Hilaire.
EXECUTIVE DIRECTOR: Ollie Korop~hak.
1. CALL TO ORDER.
Cha:1 rperson 'Laxson called th(~ HRA meet Ing 1:0 order at. 7: 05
r]. In .
2, CONSIDEHATTON TO APPROVE, THE AflCUST 2, 1995, HRA MINUTES.
Roger Carlson made a motion to approve the August ~: 1995, ARA
minutL"s. Al Larson ,o;econdod th:."" motion a!H'l w5th no addit:iotJ::.'>
or corrections, the minutes were approved as written.
:3 ~
PUB~I(;HE:A~.J;NG FOR TB.E:}I,gQtJ~JTI()j\T bt-j'RI?I~PO~ITJOf:J.QF RAt-J r,ANDS
DESCHTBEp AS LOT 5.., );I,OCK.3,.OIF. A.ND . CONSID;ERATION .TO ADOPT
THE.. RESOLtyTTON R~I'ATJN(:; Tfj"E.R.ETO'.m
Chai rperson Larson open(>d the publ j (; hear j ng f ,',Yo U';c
acquisition and disposition of raw lands de~crihed as Lot 5:
Block :i, OIP. With Lar:3on and Carlson to act upon thi:3 agund.3
item for compliance of the Declaration of Potential Conflict
of Interc.st sllbrrd tted by Bdrger, no quorm ("}{if;tNl.
r:hairpsrson Larson continued. the said public he;:u'ing ;:md
adoption of tho related resolution to Thursday, Septomber 14.
1995: 7:00 p.m. at the City Hall.
I.arson and (;Cl:rJson rcoviewprl comments submitter] by Attnrney
D;:11-'18 Strandmn, the rh~v,;.!lopl';'rs' attot'w"!y: relating to the
Purchase and Development Contract between the BRA and Voctor
Tool &. Mfg., Tnc:. as pt'epored by HRA Attorn.=y Buhul. The tvJO
members djd Ilot agree to the addition of a provision pJacing
a cap of $1,000,00 for leg.)] fees, costs, .:'In.d cxper.~;;r::3
j ncurred by the HRJ\. HRA member:.." rEocommended S t randmo ':::.;
cotmnlO!nts be submi tted to Attorney Bubul for leg;::;. 1
representat:inn with a level of consciousness for both time and
simplicity. Larson a,nd C<;ll:'l:-3on relt(~t'ated, "Th.;! purchase
In.-.j cc~ of $33,000 for the raw Janrl was sllbject to a.1.1 legal and
dOi:llment prepiH';::;.tion: cloaing, recording fees the:
r::!sponsi hi 1 j ty of tho h\lyer." See mot i on (If Augnst 2 __ 1 gCJS.
Pi;lgC~ 1
.
The two commissioners did agree to AxtGnd tho
execution of the Purchase and Development Contract
p. In., October 4, 1 9<45 .
r1 A t C~ f Cl :t'
to 11: 59
4. CONSIDERATION TO REVIEW FOR FURTHER DIRECTION THE DEVELOPMENT
. . '.
AGREEr"'ENT BETWEF,N TfiE.JIRA AND fJARSgN/ME1'CALF REI,ATING TO A 20
FOOT EASEMENT.
Slru;e the post off ice access to Locu:-3t Street W<:l.~:;; blocked,
Administrator Wo1fsteJler has heard from tho US FostaJ So~vjco
in St. Louia. He informed pOf3tal f3ervice of DevclopmerJ.t:
Agreement betwoen the HRA and Larson/Metcalf relating to t}K~
20 foot e~sement.
Korol)ch;:)k informed mf:mlH~1:'s that Brad Larson was [;::;,xed a copy
(If the DeveJopment Agreoment of 1983. With an incorrect fax
numbpr: the fax was jlJSt t'eceive(l today. Brad Larson h".3s not
respond~d at this point. After a brief discussion, A1 Larson
m..:"HJc a mot j on to take a "w~.d t 8.nd see appt'o;:3.ch." Hoger
r.dr 1 son s("condod the mot i on and wi th no furthe:r [J j SCUL:;si on,
the mot ion p;;l.ssf~d unanimous 1 y.
h
..., ~
CONSIDERATION TO REVIEWF:Q:R Fr;.R.THEH DIR~.~TION THE COMPARISON
BEn.JEEN THE TAX INCRE~-1E.Nr^. GUARArvl'~,f^.p.ND THE TAX INCREMENT
REgEIVED RELATING TO CE~1'A~..~.Tn;;:..PI.~TRI9'.I'S.
.
BRA members reviewed the information provided in th~ agend~
supplement ~nd asked why the shortfalls. Al though Gome
individual (l.i:::trict:<o; may corr{,~(:t their t::hortfaJ] prior to
decertification through an increase in the estimated market
vaJua, tho majn reason for the shortfalJ is tho rosu1t of the
reduction of the preferred classification rates for commercial
and jndustrial proflerty.
ftJith tht;:> BRA's belief "a contract is a contract", Al Lat;!3on
mad~_~ d motion autho:rjzjng the issuarl(;l'> of an annual tax
increment guarantee shortfall notice (not duo and payable)
with an expJanation that the HRA wj]] compare for compJiance
thE, tntal amount of tax incrcrnent rece i vc[l I)PC)t\
decortificatioJI of the distr5ct and the tax increment
guarantee. This for TIF District Nos. 1,-8 NSP: 1-9 Tappers,
1--10 Remmele: and 1-12 ArnpJax. Also, the motion authorized
a !';f:cond letter he h:isu(;d to ,Jay Mort'e 11 rB lat i n!J to t:hp
$13:00:i.50 tax increment guarantee shortfaJJ (hie and payab}e
for deccrtifed TIF District Nos. 1-1 and 1-4. Roger Carlsnn
,::;econded the motion. A[kJjtionally, the HRA t8b.1e[1 any TI
gua.t'ant[-o>(~ enforcement deci~3ionr;; l,lntil sHch time as ncc"'::;;::3~ry.
Wjth no furth:'!:t' [ljf~c:us~;;ion, the motje;n pa:.::;,::;ed unanjmo1JsJy.
Koropchak reported the City AdministrAtor was notified by the
State DepartmGnt of Revonue that the Cjty of Montieollo's Tax
Increment Aid Reduction (RACA Penalty) for 1996 is $:il:4~1 for
.
Pag(~ 2
.
.
.
HRA MINHTES
SEPTEMBER 6, 1995
the Aroplax, SMM, Custom Canopy, and St~ndard Iron TIP
DL:;tricts. Th j s am01mt greater Hldn ant j (;j pat~d. HRA memb:n's
rcqucs tF;>d K()l"opch;:.d~ compa re the report(;d St8. tc amount .'In.d the
TIF Penalty projections by PRG.
6. CONSIDERATION TO REVIEW FOR FURTHER DIRECTION THE TAX
INCREMENT FINANCE REIMBURSEMENTS OF CERTAIN TIF D STRTCTS.
In 1995, four TIF Districh'j are to receive TI rEdmbul:'~"FnnctJt in
accordancE' wi th UK' District Redevelopm:)nt COtltract. They arC"
Di:-3trict No:s. 1-7 NAWCO, 1-11 M8t'tief3, 1-.1~ Stand8rd Iron, 8nd
1-15 Custom Crinopy. NAWCO has not compJ 8ted the dC'l:;cr j be.-J
:-0;1 te improvcment:-3 nor :suhmittcd c;>vidf:!ttce of .payment,
thereforQ, no reimlnH'SellJE'Dt paym:::~nt has lH:,,:"n j ssuc.cl. Mart i (' I f.;;
annu8l payment of approximately $2,500 beginning in 1992 is
paf.'>t due for a total amount of 8pproximatE.Jy $7: 500. Standar(l
Iron received the first semi-annual payment ln July and Custom
Canopyi s scheduled to recej ve :its f i ]:'"f:;t annual payment in
Df:cember. Hi vcr Mi ll::~ and M iS~3 iss ipp i Shores 8Cln i ~annual
reimbursemen1" p.c;ym::-nts are dllE' to begin in August o.f 199R ari.-l
1997, respe~tivply.
journal entry transferring
Fund to the C:i ty Gf~ne:r'al F1Jn'-]
Administrator. The amount
and interest amount owed to tho
OIP, as of May 1, 1995.
Evidence of ,) July ~1, 1995
$93,0<46.30 from tho TIF Surplus
was provided by the City
transferred was the princjp~]
City for Lots 5 & 6, Block 3,
Rrad Barger made a motion authorizing payment of tho
approximate $7,500 to Russell and Sharon Martie as per the
ex:::"cu ted Re:1l"vc'!l oplneil t Contr8ct. Al Larson socon:,]:-:'d the
l'(1ot ion .HH] wi tl--l no further d iscus:3 ion, the mot ion passed
1]f'8nimo\]sJy -
7. CONSIDERATION TO DISCUSS._ FOt?F'rrt?Tn~~..p.I!3~CTION..Su1??TAJmAf?D
RESIDENTIAL PROPERTIES FOR POSSIBLE REDEVELOPMENT.
..................................................._....h. ....,...., _,.,..".."."._...................................,....................._...,".
HHA members rev h:w(~d the 1995 f~S t ima tcd m8.rkct v<,)l uc for thE,
OJ son property in the 500 b J (lck of East Broadway an.-] t}je'
Ka.tzmat'f~k property along West County Road 75. The HRA
di:::;f-;11ssod the:-o;e propertief.:; as primary areas foX' consideration
of r(~(lev(;lopment. As the Olson property is unoccupied .i t
he~nmes more diffjcult for the City to onforce as unsafe for
habitat.
Koropchek informed members of John Kamerek's initial inqlliry
with Mr'. K<-'Itzmarek relating to his pot::-"ntiaJ inter'f'st of
rAlocating to a site within a township with similar
Pagf." 3
.
.
.
HRA MINUTF.S
SEPTEMBER 6, 1995
slJt't'oundings. .John estimated the CO"o:t to <3cqui't'I:' and J:'olocate
Katzmarek at 8:pproximat:'dy $150,000. As 8 portion of the
Katzmarek property lios in a low area along Otter Croek, the
prope:t'ty h:; unsui table fo]:' construct jon an('3 wouJd m;:::Jke ,-HI
ideal park. In. addition, the HRA member}:; felt with the
cleaned-1Jp 8i I J E' plYlp:?rty aneJ Mr. Kamerek replatt ing the We;.:;;t
Prairie Subdivision for future development of twin homes, a
redevelopment project within the area would increase the value
of the properties and enhance the neigborhood and community.
MRA members agroed and recommended Puh]icorp Inc. be contacted
to complete an assossment and feasihility study for potential
redevelopment of t1-"1::" two above said area". (Olson an(J
Katzmarek/Gille/Wost Pr8irie/others.)
8,
g.Q~"SIp~~,~.T !.0}~., 1'9. ...13~YI~~_9(lt1Mg:!'-!T~_,:F':B()jvf8T,.0~~1~X_ p. UB U L R E r ,A T I NG
TO THE ~r:Qr:!f.ST:F'013_INFORMATION TO, APD AN APPITIQNAT, CRITERIA
TO THE LOCAL TIF POLICIES.
..."..'...."..,..,"".,.,.,..,.,.,.,..,,',.
HRA mem1'1er:o;: rE-'V j ewed the" comments from Attorney Rl)hn J iJnd
requc,:;tc!l Mr. Bu1'1nl wri.te the exact word.s for the ninctl,
(::r:ite:t'.j;) to thc' local TIF Policies. Knropch;.lk HUllJmarj7.(~.-J
81)b1)1 comm(;nts: The gcnE!t'8.1 concept of community involvcwF"nt
would not constitute an absolute requirement if the degreR of
<3:':;;Sf:smnf;nt includes -"-'F'_!sidency of th~::: comp8ny's ownf;t's and
ompJoyees, re:o;:ieJ,,--'nr:y of the contr<"lctors involved in the
projf'ct: IOpmbc;t's1:',irl in local business org~)niz8.tions, 8.od
similar factors. Additional.ly: KOl'opchak report::'(J o:n Mr.
Bn.hul's <;l.poJogi.c!:,> fot' the .Tunc 15 and .July ?O billings. An
8.-1 jus tment wj 11 b::> made ;:::Jnd forthcom},lfi ng .
9.
OTHER BUSINESS.
...............".. , ,
8) Bills -- HRA Il'IpmbE:/":3 reviewed other JllDC, .July, a rill AU!}lJst
bi I 1 ing:-o; fx'om Kpnnedy tV Graven anc] Publ i c: Resource Group:
and authorized payment.
b) Certificate of Completion - Koropchak informed members
that Minnesota Business Finance, Inc. Is looking to close
the SBA loan with Marquette Bank for the Fay-Mar project
8.nd rpq1H:sted a copy of the AXE:(:llted Certificdh". of
Completion. The Private Redevelo~nent Contract hetween
the MRA ;:::Jnd Ron Musich outlines the completion of the
min:im1.lm improvements wlyic:h is the compl:::.tion of thp
huiJding hy Dcccmlx~r 1995 ot' npon iS81J8.n.cc of the
OCC1.lp<=HlCY permi t. The sj t:" jmprovel'(Jenh.~ (landscaping alllJ
p8rking) completed one year from issuance of the bu.iJding
permlt or April: 1996. The City Bui]d,ing Offi(:j;)l l--laf:;
is;-o;u(:<']. the Occup<.::l.ncy Pcrmi t wi th an 88tabl ished $10,000
escrow account for the non-completed Jandscraping ;:::Jnd
Page 4
.
.
.
HRA MINUTES
SEPTEMBER 6, 1995
parking. Based on the issuance of the occupancy permit,
Al Larson made a motion authori~'.jrlg execution of the
Ccrti fic8tc of Completion for thE~ Ron Musich project
known ,;w Fi'iy-Mar Metal Fahric",tors, Inc, Brae] Barger
seconded the motion and with no further rliscussion, the
motion pAss0d unan5moDsJy.
1 () . AP~!Q~JRNMR.fIT'I"..
The BRA meeting adjourned at R:80 p.m.
O~ \\Ql~~~
ori.ic Koropch;::~k, F.xccut-lve D{:;;::Ctor-"
Pagl'" 5