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HRA Minutes 03-20-1996 . . . MINUTES SPECIAL MEETING OF THE MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY Wednesday, March 20,1996 - 7:00 p.m. City Hall HRA MEMBERS PRESENT: Chairperson Al Larson, Vice Chairperson Brad Barger, and Roger Carlson. HRA MEMBERS ABSENT: Everette Ellison and Tom St. Hilaire. MCP MEMBERS PRESENT: Chair Bob Bowen, Vice Chair Lois Maus, Secretary Bill Endres, Treasurer Merrill Busch (tardy), Clint Herbst, Fran Fair, Linda Smith, and Al Larson. MCP MEMBERS ABSENT: Dick Frie. CITY STAFF PRESENT: Jeff O'Neill and Ollie Koropchak. CITY STAFF ABSENT: Rick Wolfsteller. GUEST PRESENT: Barry Pluth, Master's Home Furnishings. 1. CALL TO ORDER. Chairperson Larson called the special meeting of the HRA to order at 7:00 p.m. 2. CONSIDERATION TO REVIEW RATINGS OF THE RFPs FOR SELECTION OF CONSULTING FIRMS TO INTERVIEW AND MAKE PRESENTATIONS. Although the HRA will hire and pay for the consulting firm, it is understood between the HRA and MCP that the MCP will serve as the primary organization associated with the consulting firm. Therefore at the request of the HRA, the MPC is included in the process for selection of the consulting firm. All members of the HRA and MCP, except St. Hilaire, Ellison, and Herbst, reviewed and rated the eight request for proposals. Based on a rating criteria sheet developed by O'Neill, O'Neill reported on the compiled scores of the criteria sheets as submitted by the twelve individuals to O'Neill by the deadline of Monday. Per the request of the members, O'Neill and Koropchak ratings were included in the scoring. The compiled scores resulted with the following rating (highest to lowest): Hoisington Koegler Camiros 824 803 Page 1 . . . HRA MINUTES MARCH 20,1996 Dalhgren, Shardlow Sanders, Wacker Northwest BRW Heritage Design Monticello Design 762 692 649 622 557 192 Members had various opinions as to the level of importance each criteria column carried. They briefly discussed the fee ranges and agreed these were negotiable. By a majority vote of the eleven members present, they selected the four top-rated consulting firms to interview and make presentations. Hoisington, Camiros, Dalhgren, and Sanders to be notified by O'Neill. The date for the interviews was set for Monday, April 1, 1996, City Hall, 6:00 p.m. Bill Endres volunteered to provide the equipment to video the presentations. O'Neill to forward Theresa Washburn a copy of the four RFPs with an invitation to attend the April 1 interview seSSIOn. Fran Fair, Bob Bowen, Al Larson, Lois Maus, and Roger Carlson volunteered to call and check references. O'Neill to assist with the development of a list of questions for consistency of reference checks. Date established for reference checks was Friday, March 29, 1 :00 p.m. at Marquette Bank. MCP Chair Bowen reported the Mep Articles of Incorporation have been filed. Filing of the tax exempt status is pending until receipt of (c)3 status information from Theresa Washburn. Members stressed the importance of a community/riverfront study not a downtown/riverfront study. The MCP departed at approximately 7:50 p.m. 3. CONSIDERATION TO HEAR PRE-DEMOLITION DEVELOPMENT AGREEMENT OPTIONS AS IT RELATES TO THE 111 WEST BROADWAY PARCEL. Upon the March 6 HRA adoption of the resolution declaring the structure at 111 West Broadway as a substandard structure, the attached Pre-Demolition Development Agreement required execution by the HRA and Barry Fluth. The agreement necessary to indicate the intent of the HRA to negotiate for acquisition of the property. The adopted resolution and the executed agreement provides the HRA with a three-year window option to include the parcel within a redevelopment district. Page 2 . . . HRA MINUTES MARCH 20,1996 The original agreement was amended as Fluth felt his property was removed from the open market for a period of 45 days or longer. Upon review of the amended agreement, Fluth inquired of the BRA's interest to acquire the property. Barry told HRA members of his asking purchase, $50,000 plus demolition costs of $16,000 or a total of $66,000. Responding to the BRA question of replacement cost; Barry informed members his policy included replacement costs only and if the structure was rebuild his policy included replacement and demolition costs. Koropchak reminded HRA members: All properties acquired by the HRA must be identified in the Central Monticello Redevelopment Plan either through the establishment of a TIF District or as a modification of the Central Monticello Redevelopment Plan. The Fluth property was not identified as a parcel for potential acquisition when the HRA fecently modified the Plan. This process takes about 6-R weeks. For management the tax payefs money, for consistency of previous HRA decisions, for protection and public relations, and to encourage Barry Fluth to enter into a Pre- Demolition Development Agreement with the BRA; Barger made a motion. The motion authorized John Farrell of Rockford to appraise the raw land located at 111 West Broadway at an approximate cost of $300-$400. The intent of the HRA is to present Barry Fluth with an offer to acquire the raw land through an option agreement. The appraisal to establish a fair market value and to be used to negotiate the purchase price. The offer inclusive of $2,500 earnest money, not-to- exceed nine months from the date of the option agreement, and first right of refusal to the BRA. Al Larson seconded the motion and with no further discussion, the motion passed 3-0. The HRA has previously elected not to acquire property within the study area until completion of the proposed Community/Riverfront Study and Plan and the TIF Proforma. An option agreement would be drafted after completion of the appraisal and upon agreement of the purchase price. 4. PROJECT UPDATES: a) Eminent Domain project - Members were provided with a copy of the letters horn Corrine Thomson. BRA member confirmed the services of John Farrell to appraise the Katzmarek property. b) Prairie West Plus - John Komerak, Bill Endres, Mark Ruff, and Koropchak were on a conference caB to inform Mr. Endres (potential lendef) of the project and intergration of the TIF assistance. Timing of TIF assistance as equity Of for cash flow of project which is established through the Private Development Contract was discussed. Result: The need for the developef Page 3 . . . HRA MINUTES MARCH 20,1996 to prepare a phased timing schedule of the proposed construction of the twin and quad homes and the coinciding construction/improvement/acquisition (project) costs. c) Carlson riverfront property: Noted letter received by Jeff O'Neill. 5. CONSIDERATION TO APPROVE THE MARCH 6,1996 HRA MINUTES. Tabled until submitted. 6. OTHER BUSINESS. None. 7. ADJOURNMENT. The HRA meeting adjourned at 8:55 p.m. a~\<(^US~~ Ollie Koropchak, Executive Director Page 4