HRA Minutes 02-14-1996
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MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, February 14, 1996 - 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.
STAFF PRESENT: Rick Wolfsteller, Jeff O'Neill, and Ollie Koropchak.
GUESTS: Steve Bubul, HRA Attorney
John Komerak, Developer
Rich Carlson, Real Estate Agent
I. CALL TO ORDER.
Chairperson Larson called the HRA meeting to order at 7: 10 p.m.
2.
CONSIDERA nON TO APPROVE THE JANUARY 10.1996 AND JANUARY 24.
1996 HRA MINUTES AND THE JANUARY 24. 1996 JOINT HRAr PLANNING
AND PARKS COMMISSSION MINUTES.
Roger Carlson made a motion to approve the January 10, 1996 HRA minutes. Brad
Barger seconded the motion and with no corrections or additions, the minutes were
approved as written.
Al Larson made a motion to approve the January 24, 1996 HRA minutes. Roger
Carlson seconded the motion and with no corrections or additions, the minutes were
approved as written.
The January 24, 1996 Joint HRA, Planning and Parks Commission minutes were not
completed nor submitted for approval.
3.
CONSIDERATION TO HEAR A PRESENTATION BY JOHN KOMERAK
RELATING TO THE PROPOSED PRAIRIE WEST PLUS DEVELOPMENT
AND PRELIMINARY CONCEPT APFROV AL FOR TIF ASSISTANCE.
John Komerak informed HRA members that Prairie West was originally platted into
seven lots (single residential development) because of neighborhood opposition to
multi-residential development. However, based the interest of the HRA to acquire
the Katzmarek property for public purpose, the potential interest of TIF assistance
for the Hanawalt and Banyai properties, and the City's willingness to negotiate a
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HRA MINUTES
FEBRUARY 14,1996
purchase price on the Gille property; the developer presented a Planned Unit
Development (PUD) of twinhomes and quadhomes. The proposed development
known as Prairie West Plus included an internal road system, green space, twin and
quad homes from 1,500-1,600 sq ft each, valued between $115,000-$160, 000 creating
a user-friendly neighborhood. Prairie West Plus development would include the
parcels of Prairie West, Hanawalt, Banyai, and City/County.
Komerak has purchased Praire West, conversed with Hanawalt and Banyai, and has
not approached the City relating to purchase of the old Gille property.
Development cost to install a sewer system and construct a private roadway was
estimated at approximately $400,000 by the developer. The PUD concept has not
been reviewed by the Planning Commission.
Wolfsteller reported the City has approximately $30,000-$35,000 into the Gille
property plus an additional $14,000 of delinquent taxes. The city recovers its cost
first and the county recovers second. HRA members encouraged Komerak and city
staff to negotiate purchase terms for the Gille property.
Koropchak reported parcels of Hanwalt, Banyai, and the smaller City/County parcel
would qualify as a Redevelopment District. Based on the construction of three
quadhomes within the district, at a per unit value of $120,000 each, district life of
20 years; the available TIF assistance isprojected at $160,000NPV (pay-as-you-go).
Because the preliminary development plans presented by Komerak, known as Prairie
West Plus, met the objectives of the HRA; Brad Barger made a motion of
preliminary concept approval for TIF assistance. Tom St. Hilaire seconded the
motion and with no further discussion, the motion passed unanimously. HRA
objectives: Removal of blight and development of upscale housing and green space.
Komerak anticipates the first-phase development of a quadhome to be on the
Hanawalt property, construction fall 1996.
4. CONSIDERATION TO ADOPT A RESOLUTION AUTHORIZING EMINENT
DOMAIN PROCESSINGS TO ACQUIRE CERTAIN REAL ESTATE WITHOUT
QUICK-TAKE. AND CONSIDERATION TO AUTHORIZE AN APPRAISAL OF
SAID PROPERTY.
With the modification of the Central Monticello Redevelopment Plan and Project
No. 1 completed, the HRA is requested to take formal action and adopt the
resolution authorizing eminent domain processings to acquire the Katzmarek
property. Prior to the modification process, Katzmarek was contacted to meet with
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HRA MINUTES
FEBRUARY 14, 1996
Larson and Koropchak to discuss the BRA's interest to acqUlre the property;
however, Katzmarek was not receptive to the idea.
BRA costs associated with the eminent domain processings are estimated to be
approximately $25,000 to $30,000. HRA members authorized Attorney Bubul to
select a qualified appraiser and to obtain estimated costs for selection of a relocation
consultant as needed to carry out the said processings.
Komerak informed HRA members of his earlier conversation with Katzmarek.
Komerak proposed swapping the Katzmarek property for a township property with
simiJiar amenities such as a creek. The conversation ended as the value of
Katzmarek amenities became unreal. Komerak felt perhaps if Katzmarek was
approached with the idea the property would be utilized as a public park and named
"Katzmarek", this may result in a receptiveness of acquisition. Komerak in
agreement, the BRA requested Komerak approach Katzmarek one last time for
discussion to acquire the property prior to filing the petition of eminent domain.
Al Larson made a motion adopting the resolution authorizing eminent domain
processings to acquire certain real estate (Katzmarek) without quick-take. The
motion was subject to results of Komerak' s discussion with Katzmarek. Tom St.
Hilaire seconded the motion and with no further discussion, the motion passed
unanimously.
5.
CONSIDERATION OF AN UPDATE OR ACCEPTANCE OF THE OFFER OF
THE PURCHASE OPTION RELATING TO BLOCK 64.
Rich Carlson informed BRA members that the HRA agenda supplement
information relating to the offer of the purchase option was true and correct.
Additionally, Carlson reported the owners are currently without housing.
Since the fire of February 6 and on February 12, the City Building Official received
a request for a building permit from a contractor hired by the insurance company.
The City of Monticello has five days to issue a permit. Normally, an insurance
company boards up the property to allow time for appraisal of structural damage.
Service Master may be appraising personal property damages.
HRA members declared the January 12,1996 HRA offer ($163,000) of the purchase
option relating to Block 64 was null and void as the HRA did not receive a copy of
the written response of the February 5, 1996 counter-offer. Deadline for the written
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response to the January 12 offer was February 7. The counter-offer increased the
option fee from $2,500 to $5,000.
6. CONSIDERATION TO AUTHORIZE ELHERS AND ASSOCIATES
(PUBLICORP) TO COMPLETE A CITY-WIDE TAX INCREMENT PRO
FORMA.
With the potential of upcoming projects for the HRA to consider, Al Larson made
a motion authorizing Ethers and Associates (Publicorp) to complete a City-wide Tax
Increment Pro Forma at a cost of not-to-exceed $2,500 for the first-run. Brad Barger
seconded the motion and with no further discussion, the motion was approved
unanimously.
7.
8:00 P.M. CONSIDERATION OF AN INFORMATIONAL MEETING WITH
PLANNING CONSULTANTS - RESPONSE TO RFP.
On behalf of the Monticello HRA, Chairperson Larson welcomed individuals to the
informational meeting relating to the RFPs. Ten firms or teams were in attendance
along with MCP Boardmembers Bob Bowen, Linda Smith, Merrill Busch, and Dick
Frie. The audience was informed of the progression steps within the community
which led to the HRA's authorization to develop an RFP for submittal. The HRA
will hire the planning consultant based as a result of the cooperative efforts of the
HRA and Mep. The MCP has accepted a one-year proposal from Theresa
Washburn, a revitalization specialist, and plans to hire a project manager.
Jeff O'Neill gave a brief overview of the provided data relating to redevelopment
or preservation of the downtown/riverfront area. Data included maps of the
downtown and surrounding area-mixed zones, existing zoning, roadway jurisdiction,
traffic volumes, and trail/pathway plans. Study area to be determined by consultant.
Some comments from the HRA Commissioners and Mep Boardmembers:
* Community looking for a bold move, quality, long term, mind change, and
creative.
* Undetermined if redevelopment or revitalization project.
* Presentation to include a not-to-exceed fee at intervals as a means of checkpoints.
* Monticello, a city or bedroom community?
* Describe method for gathering community input.
* Community spark and energy in place.
* Merchant's position to keep going.
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HRA MINUTES
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* New - raw material to become something.
* Interest and energy in place - capitalize on it.
* Other community projects: School bond and waste water treatment expanSIOn.
* Need big picture for success - 5, 10, 15 years.
* Impact of Freeway, Highway 25, and river.
* Sales job complete, need know how.
* Give resources to fund strong downtown.
* Market analysis: What's going to make them come? Who are we to target?
* Discount market changing, third-generation clothing store closed on mainstreet.
* No pre-conceived ideas.
Some questions or comments from planning consultants:
* What role will the City Engineer, civic engineer (structural), transportation
engineer, or utility engineer play in the study?
* Will the planning consultant work directly with the Mep or its project manager'!
Or whom?
* What is Washburn's role?
* The need of an indepth study of the infrastructure?
* Does City own the right-of-ways to river? Does the City own the island(s)'!
* Anticipated date of presentations?
* Suggestion: Select only three finns or teams to give presentations.
* Suggestion: Limit presentation to one hour.
* Suggestion: All presentations or interviews on the same day.
* Suggestion: Call references.
* Suggestion: Presentation by person to work on proposed project.
* Suggestion: Allow adequate time for presentation preparation.
Chairperson Larson reminded firms or teams that the RFPs deadline date for
submittal is March 4, 1996 and thanked everyone for attending.
8.
OTHER BUSINESS.
a) HRA members accepted the monthly HRA bills as enclosed.
b) HRA members acknowledged the prepared letters relating to TIF
Redevelopment Contracts.
c) Al Larson requested a checklist of firms or teams in attendance compared to
those mailed an RFP and who referred firms or teams in attendance.
d) Mississippi Shores - Based on a letter from Grover C. Sayre, Attorney for
Presbyterian Homes Housing and Assisted Living, Inc., the HRA is requested
to review and approve the Assignment and Assumption of Contracts.
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Wedum/PHM Affordable Housing, Inc. has recently received its 501(c)(3)
exemption status for the IRS. As intended and upon approval of the HRA,
the Mississippi Shores Project will transfer from Presbyterian Homes Housing
and Assisted Living, Inc. to Wedum/PHM Affordable Housing, Inc. Attorney
Bubul suggested approval subject to the Assignment and Assumption of
Contracts being prepared as a recordable document as per the Private
Redevelopment Contract. Brad Barger made a motion to approve the
Assignment and Assumption of Contracts subject to final approval by
Attorney Bubul of the prepared recordable document. Roger Carlson
seconded the motion and with no further discussion, the motion passed
unanimously.
e) Other - HRA members set March 6 as the date to review the returned RFPs.
The review to include the MCP Board of Directors. References to be called
prior to the 7:00 p.m. meeting.
Wednesday, March 20, 6:00 p.m. was set as the date for interviews and
presentation by the selected planning consultants. MCP Boardmembers
included.
9.
ADJOURNMENT.
The HRA meeting adjourned at 9:45 p.m.
G~ <rIt~!J~
Ollie Koropchak, Executive Director
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