HRA Minutes 06-04-1997
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MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, June 4, 1997 - 7:00 p.m.
City Hall
MEMBERS PRESENT:
Chair Brad Barger, Darrin Labr, Bob Murray, and Dan Frie.
MEMBER ABSENT: Steve Andrews.
COUNCIL LIAISON PRESENT: Roger Carlson.
ST AFF PRESENT: Ollie Koropchak.
STAFF ABSENT: Rick Wolfsteller and Jeff O'Neill.
GUESTS:
Kristin Graham, Project Manager, Homestead Housing Center
Fred Patch, Chief Building Official
1. Call to order.
Chair Barger called the HRA meeting to order at 7 :00 p.m.
2.
Consideration to approve the May 7> 1997 BRA minutes.
Murray noted a grammar error and requested amending the word "raise" to "raze" on
Page 3, Item 5, Paragraph 2 of the minutes. Dan Frie made a motion to approve the May
7, 1997 HRA minutes with the above requested amendment. Bob Murray seconded the
motion and with no further corrections or additions, the minutes were approved as
amended.
3. Consideration to adding items to the agenda.
Koropchak added two items to the agenda under item 10: Consideration to authorize
payment of monthly bills and consideration for removal of a garage and shed at 220 Front
Street (HRA parcel).
4, Consideration to hear a presentation by Kristin Graham - Preliminary concept of a multi-
housing senior center.
Fred Patch, Chief Building Official and an acquaintance of Kristin, introduced Kristin
Graham, Project Manager for Homestead Housing Center. Additionally, he noted a
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HRA MINUTES
JUNE 4, 1997
clarification stating Homestead Housing Center is a non-profit organization and the
cooperative is owned and controlled by individuals who live in the housing centers. In-
other-words, it is an owner-occupied housing center for the elderly not a senior center.
Fred continued by identifying the subject area for discussion. The proposed location lies
within the vicinity of the westerly end of Front Street (portions of Blocks 55,56,62,63).
He noted the proposed transitional housing for seniors was a natural for the area as the
project improves the river frontage, increases density, serves as a buffer between single
residential and commercial zones, and enhances the trail system. Combined with upscale
multi-family rental units and the proposed hotel and park redevelopment projects, the
overall redevelopment is consistent with the BRA and MCP goals and appears to make
good sense.
Kristin stated Homestead Housing Center has several corporate sponsors. When all the
units of a project are sold, there is no mortgage and the cooperative is owned by the
occupants (the shareholders). The monthly fee includes everything but cable TV and
telephone and there are no replacement costs. It generally takes 12-l8 months for
construction of a facility and 40% of the units must be pre-sold. The Cooperative
Development Foundation (CDF) provides dollars for a project in the form of a revolving
loan fund. In the case of Chisago Lakes, CDF provided $70,000 for pre-development and
land option costs and the community committed $25,000 as development seed money
which is returned if the project proceeds and generally is a grant if the project doesn't go.
At this time, no market study has been completed for the Monticello area. Qualifications
include adequate fmancials, 55 years of age or over, and capable of living independently.
Typically, there are five floor plans which range between $75 to $125 per square foot.
Low income levels do not support these units. Generally, an annual income level of
$25,000 is necessary to support the cooperative. Upon death the unit goes to the estate
and only to the cooperative if there is a buyer's waiting list. The advantages of a
cooperative is lower costs for the common areas and the shareholders are owners.
Because Homestead is a non-profit organization they purchase clear land and need
assistance in acquisition and clearance of parcels. Recognizing the Homestead parcels
would generate less tax increment, the proposed upscale multi-family development could
lend support to the cooperative project. The Mississippi Shores is rental units and the
cooperative is owner-occupied units.
HRA commissioners liked the Homestead Housing Center concept and found it to be a
great opportunity. The concept provides the elderly with security and pride through the
value of home ownership. The commissioners gave a green light to proceed: Homestead
to initiate a market study ofthe Monticello area, commissioners to visit Homestead
project in Cross Lake, and Koropchak to talk to Ehlers and Associates relating to
preliminary concept and to contact a developer(s) for interest in the multi-family housing
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HRA MINUTES
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project. One PIRA commissioner felt a request for proposal (RFP) from the HRA may
lend credibility, serve as a checks and balance, and send a message of intent to proceed.
Koropchak to check if the HRA is required by law to obtain RFPs and to verify that
income level limits are not a requirement of Redevelopment Districts. Members thanked
Kristin and Fred for their presentation.
5. Consideration to discuss the status of the Downtown and Riverfront Revitalization Plan.
HRA members were provided with a letter of recommendation from Jeff O'Neill relating
to the procedure for approval of the revitalization plan. The members discussed whether
it most appropriate for the HRA to approve the plan before or after the public hearing of
the Planning Commission or perhaps hold a joint meeting. Noting that the HRA approval
submits the plan to the Planning Commission as an amendment to the Comprehensive
Plan, the following recommendation and action was taken:
Based on O'Neill's recommendation that the MCP Board of Directors approve the
plan prior to the HRA approval, the HRA commissioners hoped all MCP Board of
Directors had the opportunity to review the plan prior to approval of the plan by
the MCP Board of Directors.
2. Darrin Lahr made a motion for the HRA to consider adoption of the Downtown
and Riverfront Revitalization Plan for submittal to the Planning Commission for
consideration as an amendment to the comprehensive plan at the regular HRA
meeting of July 2, 1997, and recommended the Planning Commission at the regular
meeting of July 1, 1997, call for a public hearing to be held and to consider the
amendments to the comprehensive plan at the regular meeting of the Planning
Commission in August. Bob Murray seconded the motion and with no further
discussion, the motion passed unanimously.
6. Consideration to grant permission to the Downtown Merchants Association for a one-dav
use of the HRA West Broadway lot.
Darrin Lahr made a motion granting permission to the Downtown Merchants Association
for a one -day use of the 111 West Broadway parcel subject to the Merchants Association
carrying liability insurance and returning the property to its original state. The one -day
use for Saturday, August 9, 1997, the date of the farmer's market. Dan Frie seconded the
motion and with no further discussion, the motion passed unanimously.
7. Consideration to discuss HRA Bylaws for potential amending.
At the May HRA meeting, commissioners tabled any discussion for revision of the Bylaws
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until June allowing more time to compare the Monticello bylaws with the bylaws of the
Columbia Heights HRA and the Burnsville EDA. Koropchak began by noting
housekeeping items such as proper use of gender and annual meeting date and time and
that no provision exists relating to commissioners. HRA commissioners requested
Attorney Bubul review the suggested amendments outlined by Koropchak for submittal to
the HRA for review and approval in July.
8. Consideration to set a special meeting to establish a proposed 1998 HRA budget.
HRA members called for a special meeting date of Wednesday, June 18, 1997, 7:00 p.m.,
to begin preparation of the 1998 HRA Budget.
9. Consideration of project updates:
The commissioners accepted the written update and agreed to consider the Allied
Companies/Midwest Graphics project at the special meeting of June 18 if the developers
so requested or perhaps the city could utilize the new "abatement authority" for this
proposed project.
to.
Other Business:
a)
Brad Barger made a motion to approve the May HRA bills. Seconded by Dan Frie
and with no further discussion, the motion passed unanimously.
b)
Koropchak informed HRA members that the Building Department has requested
Mr. O'Connor to remove personal property from the garage and shed located on
the HRA-Front Street parcel in preparation of a request for bids for removal or
demolition ofthe structures. It is assumed the Building Department cited the
structures as a nuisance or a hazard. Members asked ''why the rush and what was
being stored'''! More importantly, HRA members were concerned about their
legal right as a public body and questioned if an '1mIawful detainer" was necessary.
Darrin Lahr made a motion authorizing the Building Department to seek bids for
removal or demolition ofthe garage and shed located at 220 Front Street and
payment thereof subject to legal advise relating to the HRA's liability of
notification to remove and the removal of personal property. Seconded by Bob
Murray and with no further discussion, the motion passed unanimously.
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HRA MINUTES
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11. Adiournment.
The HRA meeting adjourned at 9:15 p.m.
a~ \<~~~i)~
Ollie Koropchak, Executive Director
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