HRA Minutes 07-03-1996
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MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, July 3, 1996 - 7:00 p.m.
City Hall
MEMBERS PRESENT:
Chairperson Al Larson, Tom St. Hilaire, Roger Carlson, and
Steve Andrews.
MEMBERS ABSENT:
Vice Chairperson Brad Barger.
STAFF PRESENT:
Ollie Koropchak.
STAFF ABSENT:
Rick Wolfsteller and Jeff O'Neill.
1. CALL TO ORDER.
Chairperson Larson called the HRA meeting to order at 7:00 p.m.
2. CONSIDERATION TO APPROVE THE JUNE 5 AND IDLY 1, 1996 HRA
MINUTES.
Al Larson made a motion to approve the June 5, 1996 HRA minutes. Seconded by
Roger Carlson and with no corrections or additions, the minutes were approved as
written.
Al Larson made a motion to approve the July 1, 1996 HRA minutes. Seconded by
Roger Carlson and with no corrections or additions, the minutes were approved as
written.
St. Hiliare affirmed the minutes of May 1, 1996, as correct. The May minutes
amended the April 3 minutes to read "If the HRA elects to increase the levy, we
may as well close-up shop."
3. CONSIDERATION TO APPROVE THE CERTIFICATE OF COMPLETION FOR
THE H-WINDOW COMPANY.
With the H-Window having completed the site improvements relating to the 1993
expansion and the HRA having received copies of invoices of the qualified TIF
expenditures, Tom St. Hiliare made a motion to approve the Certificate of
Completion for the Private Redevelopment Contract between the HRA and the H-
Window Company dated September 23, 1993. Al Larson seconded the motion and
with no further discussion, the motion passed unanimously. The HRA previously
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agreed to reimburse the H-Window the February 1996 payment in the amount of
$10,000 subject to sufficient tax increment and upon completion of the site
improvements by spring 1996.
Koropchak noted the request by City Staff to relocate the property line between Lot
11 and 12. Koropchak has advised Staff that the original intent to construct the
building to the property line allowed for the flexibility to create a new TIF District
on Lot 11 for assistance upon future expansion. Upon the results of applying the
inflation factor and with the decertification of District No. 1-7 in 1996, this may be
irreverent.
4. CONSIDERATION TO APPROVE ENTERING INTO A LOAN AGREEMENT
BETWEEN THE HRA AND THE MCP.
This is a housekeeping item as the HRA previously approved the $10,000 interest-
free, unsecured loan to the MCP for start-up costs relating to the Theresa Washburn
Contract and other downtown/riverfront revitalization/redevelopment costs. Total
expenditures as of July 3,1996, are $5,541.39with a remaining balance of $4,458.61.
Tom S1. Hilaire made a motion to enter into the Loan Agreement between the HRA
and the MCP. Roger Carlson seconded the motion and with no further discussion,
the motion passed 3-0-1. Yeas: St. Hilaire, Carlson, and Andrews. Nays: None.
Abstention: Al Larson.
5.
CONSIDERATION TO DISCUSS USE OF TIF FOR TWO PROPOSED
PROJECTS:
a) Lake Tool, Inc. - According to Eric Bondhus, one of three brothers who own
Lake Tool, Inc., the company is looking to construct an approximate 8,000 sq
ft office/manufacturing building. Site selection is between Lots 1 and 2,
Oakwood Industrial Park, Second Addition or the easterly portion of Lot 5,
Block 3, OIP, currently owned by Vector Tool. Current employment is 3 and
the company expects to employ a total of 10 within two years. Wages
between $40,000to $50,000without benefits (Design,toolmakers,moldmakers.)
Level of assistance may determine type of construction material: concrete or
metal. Based on the given assumptions, the TIF estimates suggest a pay-as-
you-go assistance of $37,900 NPV @ 9.5 % over nine years is doable. The
HRA members gave a green light to proceed with the utilization of TIF for
the Lake Tool project, level of TIF assistance to be approved later. This to
encourage local ownership retention and expansion, and the project provides
good paying jobs and increases the tax base. The company is a manufacturer
and supports the community.
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HRA MINUTES
JULY 3,1996
b) Fay-Mar expansion - According to Ron Musich, owner, the company is
looking to construct an approximate 12,000 sq ft addition in 1996. The
company currently employs 30 and the expansion would add an additional 20.
Based on the given assumptions, the TIF estimates suggest a pay-as-you-go
assistance of $72,000NPV @ 9.5% over eight years is doable. However, only
site improvement costs are eligible TIF expenditures as no land acquisition
is necessary for the expansion. The HRA members gave a green light to
proceed with utilization of TIF for the Fay-Mar expansion subject to evidence
of resolution between Schleunder Construction and the General Contractor
relating to discrepancy between the price of the bid versus the actual work
completed. Level of TIF assistance to be approved later. This to encourage
business retention and expansion, and the project provides manufacturing
wages and increases the tax base. The company is a supporter of the
community.
6. CONSIDERATION OF UPDATES:
Koropchak reported both the Fluth closing and the Prairie West closings took pla,;e
earlier in the day.
7.
OTHER BUSINESS.
a) Monthly bills - Koropchak reported Publico1p would be re-submitting a bill
for the preparation of the TIF Proforma! Analysis as this was a not-to-exceed
amoWlt of $2,500. HRA members ok'd all other submitted bills.
b) Other - None.
8. ADJOURNMENT.
The HRA meeting adjourned at 7:25 p.m.
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a i,L\L~ ~ 'II \\~l~_
Ollie Koropchak, Execu lve Director
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