Loading...
HRA Minutes 10-04-1995 . . . MINUTES MONTICELLO HOUSING AND REDEVELOPMENT AUTIlORITY Wednesday, October 4, 1995 - 7:00 p.m. City Hall MEMBERS PRESENT: Chairperson Al Larson, Vice Chairperson Brad Barger, Tom St. Hilaire, and Roger Carlson. MEMBERS ABSENT: Everette Ellison. EXECUTIVE DIRECTOR: Ollie Koropchak. CITY STAFF: Jeff O'Neill. GUESTS: Steve Bubul, HRA Attorney Mark Ruff, Publicorp, Inc. Dick Frie, Planning Commission Chair Rich Carlson, Planning Commission Member 1. CALL TO ORDER. Chairperson Larson called the HRA meeting to order at 7:00 p.m. 2. CONSIDERATION TO APPROVE THE SEPTEMBER 14. 1995.HRA MINUTES. Brad Barger made a motion to approve the September 14, 1995, HRA minutes. Roger Carlson seconded the motion and with no corrections and additions, the minutes were approved as written. 3. OLD BUSINESS: a) Confirmation of TIF Reimbursement to Russell and Sharon Martie. HRA members acknowledged that the $7,500 TIF Reimbursement due Russell and Sharon Martie was paid via a copy of the check dated September 12,1995. The reimbursement was for 1992,1993, and 1994 as per the Private Redevelopment Contract. Consideration to review for followup the second notice mailed Jay Morrell relating to the TI Guarantee deficiency. Chairperson Larson asked if this was a matter to be resolved between the developer and the City Councilor Administrator. Attorney Bubul responded, "No, the original Redevelopment Contract was between the HRA and Ron and Dee Johnson." The original TI Guarantee was $20,000 and was later modified to $28,000. When the property was later sold to Plaistad/Morrell and later to Morrell; the redevelopers, City, HRA, and Asssessor agreed to reduce the EMV to within a range of the foreclosure/purchase price. b) Page 1 . . . HRA MINUTES OCTOBER 4, 1995 However, the TI Guarantee remained at $28,000. The problem with the modified agreement is no provision exist stating if the redeveloper defaults, the redeveloper is liable for the BRA legal fees. Attorney Bubul continued if the HRA filed a claim against Morrell, the legal costs to collect may outweight the TI Guarantee shortfall of $12,517.93 for expired TrF District Nos. 1-1 and 1-4. The modified agreement was drafted by the 1989 City Administration. With the given information, the HRA elected not to file a claim and directed Koropchak to contact Morrell for a personal conversation to resolve to the shortfall. c) Consideration to review for followup the September 6,1995, letter from Brad Larson. Mr. Brad Larson's letter indicated a willingness to provide the 20-foot easement for ingress and egress per the contract; however, since this was a public easement they felt the maintenance might be borne by the city. The BRA members agreed to continue the "wait and see approach" since the maintenance item is between the two property owners Larson/Metcalf and Cinco Corporation. Koropchak drafted the September 27, 1995 letter to Cinco Corporation for clarification purposes only. 4. NEW BUSINESS: a) Consideration to discuss for potential purchase the property described as Lots 1,2,3,4,&5, Block 64 and N 40 ft of vac River St ly S of Blk 64 - Jeff O'Neill reported that the Parks Commission was supportive of the HRA acquiring this parcel along the Mississippi River for use as a public park because of the high demand for parks, increased useage of the Bridge and Ellison Parks, and green space would compliment an area redevelopment project or a downtown redevelopment project. Additionally and although purchase price is unknown, this may be an opportunity for use of TIF Surplus. Rich Carlson, representing the seller, informed HRA members of his awareness as a Planning Commission member that this property or area was identified as a problem within the City Comprehensive Plan. At first the sellers were reluctant to accept the idea of their home being purchased for possible demolition; however, more recently the sellers have different thoughts. Additional comments by Rich Carlson were the couple were reluctant to attach a purchase price. The lot has 330 feet of river frontage which runs $400-$600 per linear foot. Time frame is good. Do not push sellers allowing adequate time for the sellers to fmd new place. The tum-of- the-century home could be moved. The garage was totaling destroyed in wind storm. Page 2 . . . HRA MINUTES OCTOBER 411995 Attorney Bubul informed members that the HRA could acquire the property l deed the property to the City for public park (public purpose)l and must inform the sellers of their rights to relocation costs. As willing sellers the relocation costs would be waived, otherswise, a relocation consultant is hired to establish relocation costs. It was highly advised that an appraisal be obtained to establish some reasonable basis of a price as this is a public purpose project. A resolution would be adopted prior to demolition to establish a three year window which allows the demolished structure to qualify within the test for establishment of a Redevelopment District. Tom St. Hilaire voiced a middle-of-the-road position to move forward with acquisition. This an expenditure and he prefers promoting new business, a revenue. The remaining three members voiced an opinion to proceed because the property would compliment a potential riverfront/downtown redevelopment project or a redevelopment project of high-rate townhomes as identified as a goal of the HRA two years prior. A figure of $180,000 with garage was mentioned by the seller's agent as not out-of-line for starts. b) Brad Barger made a motion authorizing an appraisal of the described property. Tom St. Hilaire seconded the motion and without further discussion, the motion passed. Yeas: Brad Bargerl Tom St. Hilairel and Al Larson. Nays: None. Abstention: Roger Carlson (Potential conflict of interest. Rich Carlson, the seller's agent, is brother to Roger.) Rich Carlson advised the HRA that the property is not available for public auction up to a maximum of one year. Consideration to review the feasibility study and recommendations as prepared by Mark Ruff of Publicorp, Inc. relating to the Prairie West/Katzmarek and Olson properties - Mark Ruff reviewed the written information provided in the agenda and informed members the Olson property in the 500 block of East Broadway is a likely parcel for redevelopment. Patterned after the Richfield program, single parcels are purchased by the HRA from volunteer sellers. Demolition occurs and parcels sold to pre-arranged interested builders. The HRA creates a Redevelopment District through cooperation with the County which includes about 10 identified parcels for redevelopment. Average purchase price is $40,000 to $50,000with demolition costs of a couple thousand dollars. The builder purchases the raw land for approximately $25,000from the HRA and the new home generates about $25,000 over the life of 25-year district. Page 3 . HRA MINUTES OCTOBER 4,1995 A new home of greater market value is build and encourages the neighborhood to make improvements. Mark recommended local criteria be established: Define the market, market volunteer sales, find builders, establish minimum new market values, and identify several parcels for district which are agreeable to Council and staff. Downsides are a parcel may contain soils with environmental issues. HRA members recognized this programs works based on all assumptions and the market being right, an HRA may re-gain the value but not the cost. Planning Commissioner Carlson felt redevelopment of single homes along Broadway was not marketable because of the heavy traffic and felt the area should be rezoned to enlarge the downtown area as part of the updated comprehensive plan. c) Next, Mark Ruff informed the HRA members that the Katzmarek property in itself qualified as a redevelopment district. However, if the properties to the east were included to increase the tax increment revenue, the area would not qualify as a redevelopment district because a resolution was not adopted by the City prior to demolition of the old Gille structures and removal of tanks. However, the HRA can acquire, demolish, and deed the Katzmarek property to the City for a public park as it lies within the Redevelopment Project NO.1 boundaries. Rich Carlson and Koropchak informed the HRA members of the conversation between Mr. Katzmarek and John Kamerek relating to an interest for a trade/purchase arrangement. Mr. Katzmarek was not interested in relocating to the township on property similiar to his current surroundings. HRA members recommended Koropchak contact Mr. Katzmarek for a meeting between Chairperson Larson, Katzmarek, and Koropchak relating to the HRA' s interest of redevelopment and Mr. Katzmarek's interest to sell. If Mr. Katzmarek has no interest to sell, Tom St. Hilaire made a motion for the HRA to move forward with condemnation and relocation of a blighted property for redevelopment. The property known as the Robert Katzmarek property. Al Larson seconded the motion and with no further discussion, the motion passed 4-0. The HRA members agreed not to act on the Olson property along East Broadway until completion of the City Comprehensive Plan Update. Consideration to review the descrepancy between the estimated TIF Penalty and the State's TI Aid reduction - HRA members accepted the written explanation provided by Lenny Kirscht of PRG, Inc. The descrepancy resulted because of the combination of a decrease in the sales ratio and an increase in the estimated tax rate between . . Page 4 . . . HRA MINUTES OCTOBER 4,1995 the date the post 1990 TIF Districts were created and the actual reported aid reduction. d) Consideration to amend the City of Monticello TIF Policies for addition of the proposed nineth criteria - Al Larson made a motion amending the TIF Policies for the addition of the nineth criteria: The project shall demonstrate "community involvement" including demonstrated degrees of the various factors: a) Local residency of the company's owners and employees, or b) Local residency of the contractors involved in the project, or c) Membership in local business organizations, or d) Other similiar factors. Roger Carlson seconded the motion and with no further discussion, the motion passed 4-0. 5. CONSIDERATION TO REVIEW HRA BILLS FOR APPROVAL: a) Acknowledgement of Letter of Adjustment - Members accepted the adjustment from $1 ,389.80to $300 relating to the Kennedy & Graven billing for research of the TIF Policy criteria. b) Authorize payment of Vector Tool bills for reimbursement - Al Larson made a motion fOf payment of the public hearing notice publication of $171.05 and preparation of purchase agreement of $773.40 relating to the Vector Tool project. Roger Carlson seconded the motion and with no further discussion, the motion passed. Yeas: Al Larson, Roger Carlson, and Tom St. Hilaire. Nays: None. Abstention: Brad Barger (Potential conflict of interest.) All HRA costs associated with the land sale are the responsibility of the buyer and the HRA will be reimbursed by the title company at the time of closing. c) Authorization of other bills - Members authorized payment of the $31.00 Kennedy and Graven bill. 6. OTHER BUSINESS. Chairperson Larson requested Attorney Bubul inform the HRA members to the general powers of an HRA and the general powefS of an EDA. This a reiteration of the special COlUlcil meeting of October 4, 1995, which was requested by the (DC to consider consolidation of the HRA and the EDA and to define the role of the IDC as a possible subcommittee of either organizations. As a subcommittee of a governmental entity, the IDC would be subject to the open meeting law and restrictions would apply to expenditure of IDC flUlds. The IDC officers felt their Page 5 . . . HRA MINUTES OCTOBER 4, 1995 function was best served as a subcommittee of the Chamber of eommerce for utilization of the Chamber's non-profit tax exempt status. HRA members individually verbalized their opinion to the strengths and weaknesses to consolidate the BRA and the EDA. They Ullanimoulsy agreed and recommended that the HRA and EDA not consolidate and that the existing two-commission organizational structure continue. HRA members felt the two-commission structure was the best long-term organizational structure for the eity of Monticello because the structure offers a checks and balance system, works well to the benefit of the developers and the city, and the preservation of the HRA preserves the non-tangible HRA assets of historical value, experience, and familiarity of projects. Subject to Attorney Bubul' s verification that the HRA can legally administer the GMEF and if the eity eOUllcil saw the roles of the HRA and EDA as a duplication of efforts and elected to consolidate the HRA and EDA, then the HRA recommended that the HRA be preserved and the EDA consolidate into the HRA. Members felt that the HRA was in a better position to address project issues because of the HRA' s historical value, experience, and familiarity of projects and the preservation of the HRA would best retain a checks and balance system. After Mr. Bubul verifies the HRA can legally administer the GMEF, Koropchak was requested to draft a letter to COUllcilmembers stating the HRA's recommendations. Letter to be signed by HRA members in attendance. Also, HRA members requested HRA minutes be submitted to Planning Commission Chairperson Dick Frie. 7. ADJOURNMENT. The HRA meeting adjourned at 10:00 p.m. O~ \<O\"'~ Ollie Koropchak, HRA Executive Director Page 6