HRA Minutes 02-05-1997
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MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, February 5, 1997 - 7:00 p.m.
City Hall
MEMBERS PRESENT:
Chairperson AI Larson, Vice Chairperson Brad Barger, Tom St.
Hilaire, Steve Andrews, and Darrin Lahr.
COUNCIL LIAISON:
Ro ger Carlson.
STAFF PRESENT: Ollie Koropchak and Jeff O'Neill (portion of meeting)
1. CALL TO ORDER.
Chairperson Larson called the HRA meeting to order at 7:05 p.m.
2. CONSIDERATION TO APPROVE THE HRA MINUTES OF DECEMBER 4. 1996.
AI Larson made a motion to approve the HRA minutes of December 4,1996. Steve
Andrews seconded the motion and with no corrections or additions, the HRA minutes
were approved as written.
3.
CONSENT AGENDA.
a) Chairperson Larson inquired of the Kennedy & Graven, January 9, 1997 invoice
for Lake Tool relating to the job goals and insurance coverage within the Private
Redevelopment Contract. Koropchak responded this conversation related to the
Lake Tool request for modification ofthe job covenants from at least five new jobs
at an annual average wage of at least $40,000 to at least five new jobs with a
weighted average wage of at least $40,000. Second request, modification of the
comprehensive general liability insurance coverage from $1,000,000 to $500,000.
Koropchak further noted on January 22, 1997, the MCP approved the satisfaction
of work completed through Task IV ofthe Contract for Revitalization of the
Downtown and Riverfront. Work as completed by the Hoisington Koegler Group.
With no further questions, Al Larson made a motion to approve the monthly HRA
bills from Kennedy & Graven, Ehlers, Hoisington Koegler Group, and Braun
Intertec. Brad Barger seconded the motion and with no further discussion, the
motion passed unanimously.
4. OLD BUSINESS (REPORTS):
HRA members accepted the reports relating to the projects and Contracts between the
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HRA MINUTES
FEBRUARY 5, 1997
HRA and T.J. Martin, Inc. and the HRA and Cedrus Creek Craftsman, Inc. Additionally,
they accepted the report relating to the closing of the 220 Front Street parcel and were
informed that Mr. Reed was provided with a list of home values and names in the area of
West 5 and 6 Street in order to assist him with finding an alternate site for construction of
a home for his handicap niece. HRA members discussed the letter to the editor from
Sherril Olson and family which appeared in the January 30 Monticello Times.
Commissioners felt it was unfortunate the letter made no mention of the fact the HRA
paid $30,000 for the Front Street parcel, the purchase price suggested by Mr. Reed to the
HRA as acceptable compensation for the parcel. Chairperson Larson informed HRA
members he attempted to contact Mr. Reed several times since publication of the letter;
however, without success as Mr. Reed has not returned his calls. One other Commissioner
received two telephone calls relating to the letter. HRA members agreed to lay low or not
react. Only if additional public comments are heard would the HRA respond and respond
quickly.
5. NEW BUSINESS.
a) Consideration to authorize endorsing a fee increase for Ehlers and Associates.
HRA members agreed the work performance of Ehlers and Associates is outstanding.
However, the HRA questioned why the cost over-run of$2,782.50 for preparation ofTTF
District No. 1-21 when the estimated cost for preparation ofa TIF District was $2,000'1
When did the last hourly fee increase from $90 to $105 occur? The $15 per hour increase
to a new hourly rate of$120 or a 12.5% increase appears quite steep. Chairperson Larson
made a motion inviting Mark Ruff of Ehlers to the March HRA meeting to respond to
these questions prior to the HRA endorsing the fee increase. Steve Andrews seconded the
motion and with no further discussion, the motion passed animousIy.
b) Consideration to discuss for authorization to pay the Hoisington Koegler Group
for work beyond the scope ofthe Downtown Revitalization Study.
HRA members were asked to authorize payment of$2,600 plus mileage and drawing
reproduction expenses for work conducted beyond the scope of the Downtown and
Riverfront Revitalization Study. The additional work includes further exploration to assist
the community in determining if such a shared community/training center can suit the
needs of various partners and to assist the City in assessing its feasibility and its relation to
the downtown plan. O'Neill informed HRA members that previously meetings have been
held between the National Guard and school and city administration relating to a shared
facility. Some meetings, independently, and others, jointly. The National Guard is
committed to the City of Monticello and wants to be a part ofthe community.
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HRA MINUTES
FEBRUARY 5, 1997
The concept of a shared community/training center in the core area of downtown raised
questions and varied reaction from HRA members. Do we need Hoisington? Who pays
for the multi-use construction and land costs plus operational costs? Does commercial
revitalization mean expanding the downtown? The economic benefits to the City of
Monticello will occur whether the training center is located on the school site or in the
core area of Monticello. The redevelopment of the core area is important to my family.
How is the shared facility a key-off ofthe revitalization plan when the plan is not
completed or accepted? How are the dollars leveraged? Who's issue is it?
AI Larson made a motion to approve the proposal submitted by Hoisington and proposed
the City and HRA equally share the $2,600 plus expense costs. The motion was made as
a means to further explore the configuration and uses of a community/training center in
the core area and to assess funding options and its feasibility. Darrin Lahr seconded the
motion and with no further discussion, the motion passed 4-1. Yeas: Larson, Lahr,
Andrews, and Barger. Nays: St. Hilaire. The item will appear of the Council agenda of
February 10, 1997.
c.) Consideration to review the draft copy of the 1997 BRA Prioritization Worksheet
and to set a date for a follow-up HRA workshop.
HRA members received a copy of the 1997 PRIORITIZATION WORKSHEET
Planning/Building/Economic Development Departments and a copy of the HRA and EDA
Worksheet. The latter worksheet included those ofthe departmental worksheet plus
others. O'Neill asked the HRA members to rank the items on a one to ten scale with ten
being the top priority. Thereafter, administration will make ready for the City Council
Work Shop of March 15, 1997. HRA members requested additional time for thought and
independent ranking. Each member to return their ranked worksheet at the March 5
HRA meeting. Tom St. Hilaire ranked and submitted his items as he would be out-of-
town.
d) Consideration of a report on the Richfield Rediscovered Program.
HRA members Larson and Andrews participated in the visit to Richfield and provided
input to the other members in addition to the written agenda supplement. The objective of
the Richfield Rediscovered Program is to provide sites for new homes by removing
smaller, poor quality, houses on lots through out the city. Properties are purchased by the
Richfield BRA through a voluntary acquisition program. Sites are cleared of the existing
structures for development. Land and building criteria is $55,000 or less. A proactive
marketing plan mails periodical mailing of available properties to interested builders or
buyers.
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HRA MINUTES
FEBRUARY 5, 1997
A second program is called Transformation Homes. This program is a loan for
remodeling costs. The loan is 10% of a remodeling contract between $30,000 to $50,000,
15% of a remodeling contract of more than $50,000, or not to exceed $15,000. The loan
is deferred, no interest, and 30 years or repaid when house is sold.
Comments from members varied: Worth further exploration; programs appear market
driven; can the programs be managed with current level of city staff; and
housing/redevelopment is expensive, no revenues. Support the redevelopment ofthe two
identified anchors and redevelopment of the downtown buildings. No action was taken at
this time by the HRA as the two housing programs and marketing program will be ranked
as part ofthe prioritization worksheet.
e) Consideration ofa update on the establishment of Redevelopment District No. 1-
22 and approving the preliminary concept for modification of District No. 1-17.
HRA accepted the written progress report relating to the establishment of Redevelopment
District No. 1-22" the downtown district". Mark Ruffwill be present at the meeting of
March 5 to present the TIF plan.
Having received the Satisfaction of Mechanic's Lien, Al Larson made a motion approving
the preliminary concept for modification ofTIF District No. 1-17. The proposed
expansion project includes 20,000 sq ft of manufacturing space and creates 20 new jobs
over two years. The average wage of the jobs is $8.50 per hour. Tom St. Hilaire
seconded the motion and with no further discussion, the motion passed anirnously.
6.
OTHER BUSINESS.
St. Hilaire reported St. Henry's fundraising campaign starts April 1 and runs through May
15. Construction of the new facility anticipated to begin spring of 1998. He noted a
great opportunity exists for purchase ofthe current church property (two city blocks with
the exception of2 homes).
7. ADJOURNMENT.
The HRA meeting adjourned at 9:30 p.m.
a~ L\Q)W;~"<~
Ollie Koropchak, E cutlVe DIrector
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