HRA Minutes 05-29-1996
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MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
SPECIAL MEETING
Wednesday, May 29,1996 - 7:00 p.m.
MEMBERS PRESENT: Chairperson Al Larson, Vice Chairperson Brad Barger, Tom St.
Hilaire, and Roger Carlson.
STAFF PRESENT: Ollie Koropchak.
GUEST: Attorney Steve Bubul
Redeveloper John Komarek
I. CALL TO ORDER.
Chairperson Larson called the special HRA meeting to order at 7: 00 p. m.
2.
CONSIDERATION TO APPROVE THE MAY 6 AND MAY 13. 1996, HRA
MINUTES.
Al Larson made a motion to approve the May 6, 1996, HRA minutes. Roger
Carlson seconded the motion and with no corrections or additions, the minutes were
approved as written.
Al Larson made a motion to approve the May 13, 1996, HRA minutes. Roger
Carlson seconded the motion and with no corrections or additions, the minutes were
approved as written.
3. CONSIDERATION TO ADOPT A RESOLUTION APPROVING THE
CONTRACT FOR PRIVATE REDEVELOPMENT AMONG THE HRA, THE
CITY. AND CEDRUS CREEK CRAFTSMAN, INe.
Attorney Bubul summarized the Private Contract among the HRA, the City, and
Cedrus Creek. The previous evening, the City Council approved the contract as
written on a 3-2 vote with one modification: The entire $40,000 for the City parcel
(Gille) to be paid upfront.
Within the three TIF parcels, ten units will be constructed on a three-year buildout.
Outside the TIF parcels, nineteen units will be constructed over a five-year buildout.
TIF assistance is $130,000. $32,500 TIF payout upon closing of Hanawalt/Banyai
parcels and $10,000upon issuance of a Certificate of Completion for each townhome
completed not-to-exceed $32,500. The remaining $65,000 with a noncompound
interest rate of 8.5 % per annum commencing August I, 1999 and ending
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The $40,000 paid to the City for its parcel upon closing and transferred to the
redeveloper for $1.00. $25,000 of the $40,000 from non-restrictive funds therebye
the HRA gifting the 5 % local contribution eliminating the City's HACA Loss. The
local contribution is not payment from the redeveloper or TIF dollars. The TIF
dollars are subject to a reverter: If the City parcel is not developed, TIF payments
stop. TIF District No. 1-20 may have an early pay-off which would offset the costs
incurred by the HRA for acquisition of the City parcel. Attorney Bubul informed
member the Contract does allow the HRA options relating to acquisition or
development of the Katzmarek parcel.
Brad Barger informed HRA members of an interested buyer for the Katzmarek
parcel. Chairperson Larson informed members of Administrator Wolfsteller's
response: Is the Katzmarek parcel developable? "The City would have a tough time
denying a permit." Developed as prairie grass, the parcel would be of non-density.
Komarek expressed his interest to develop the parcel and requested the HRA
explore (survey) the parcel for development. Barger and St. Hilaire felt the parcel
was worth exploration because as a developed parcel a win/win situation occurs.
As the redeveloper and as buyer on the purchase agreement, HRA suggested
Komarek explore (survey) the parcel. Knowing this project was not about money,
Tom St. Hilaire made a motion adopting the resolution approving the Contract for
Private Redevelopment among the HRA, the City, and Cedrus Creek Craftman, Inc.
as approved by the Council. Al Larson seconded the motion and with no further
discussion, the motion passed unanimously.
4.
CONSIDERATION OF AN UPDATE RELATING TO THE CLOSING OF THE
III WEST BROADWAY PARCEL.
Koropchak reported the title work is underway by Preferred Title whom most
recently received the abstract. Targeted closing date, May 31, 1996. Tom St. Hilaire
requested the following entered into the HRA minutes: St. Hilaire is totally against
the HRA's purchase of the 111 West Broadway parcel for four reasons. One,
Conflict of Interest, HRA Chairperson Al Larson also a member of the MCP Board
of Directors, seconded the motion to acquire the parcel. Secondly, the purchase
price is over the suggested 120% guideline ($37,000X 1.20 = $44,400). Third, the
acquisition is against the Attorney's suggestion and does not meet the "but for" test.
Lastly, the acquisition stops normal rehabilitation by private redevelopment.
Roger Carlson noted the HRA purchase price was not greater than 120 % of the
seller's appraisal and the private developer was not expected to build for two to
three years. Hilaire noted he had received more phone calls of opposition relating
to the approved acquisition. Carlson noted he had also; however, in favor of
acquisition. Barger said he only voted in favor of acquisition because he saw the
HRA ownership as short term. Chairperson Larson noted the "but for" test only
applied upon establishment of a TIF District.
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HRA MINUTES
MAY 29, 1996
5. CONSIDERATION OF DISCUSSION RELATING TO FILLING THE V ACA TED
HRA COMMISSIONER'S SEAT.
With receiving only one application for the vacated HRA seat, HRA members
agreed to extend the deadline for application until May 31, 1996. Names suggested
were Paul Theilen, Merrlyn Seefeldt, Jim Maus, Charles Walters, and Dave Kranz.
6. OTHER BUSINESS.
Tom St. Hilaire noted he would be out-of-town the month of June except for 8 days.
7. ADJOURNMENT.
The special HRA meeting adjourned at 8:05 p.m.
<J~ ~GL~~
Ollie Koropchak, Executive Director
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