HRA Agenda 01-28-1998 Special
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AGE
MONTICELLO HOUSING AND
Special Meeting - Wednesday,
City
A
DEVELOPMENT AUTHORITY
anuary 28,1998 - 7:00 p.m.
all
MEMBERS: Chair Brad Barger, Vice Chair Stev Andrews, Darrin Lahr, Bob Murray, and Dan
Frie.
COUNCIL LIAISON:
Brian Stumpf.
STAFF:
Rick Wolfsteller, Jeff O'Neill, and
GUEST:
Dan Greensweig, Kennedy & Grav .
1. CALL TO ORDER.
2. CONSIDERATION TO DISCUSS THE P TENTIAL PURCHASE OF THE LAND
ALONG WALNUT STREET CURRENT Y OWNED BY ARVE GRlMSMO.
3. OTHER BUSINESS.
4.
ADJOURNMENT.
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HRA AGENDA
JANUARY 28, 1998
2. n ider tion to discuss the
owned by Arve Grimsmo.
A. Reference and Background:
This special meeting ofthe HRA was calle by Commissioners Steve Andrews and Dan
Frie to discuss the potential purchase ofth land along Walnut Street currently owned by
Arve Grimsmo. The public notice posted nd submitted to The Monticello Times on
January 23, 1998.
The proposed acquisition of the said raw I d would be for the purpose ofredevelopment.
The parcel lies within the boundaries of T Redevelopment District No. 1-22 and the
Monticello Downtown and Riverfront Rev' alization Plan.
The parcel is currently owned by Arve and Jean Grimsmo. The parcel consists of 1.25
acres or 54,450 sq ft. The County Assess's EMVpayable 1998 is $32,000. The
remaining balance of the two special asses ments are $718.36 and $1,031.80. The legal
description is Lot I, 2, 3, 4, and 5, Block 1 , City of Monticello.
It has been the practice of the HRA to first obtain an appraisal on a parcel prior to making
an offer to acquire. If the HRA is intereste in acquiring this parcel, it is suggested to
follow the past practice. The HRA Atto yalso suggests an Environmental Phase I
Assessment be obtained for this property. fthe current owner, Mr. Grimsmo, has a
recent completed Environmental Assessm t, the HRA may wish to consider requesting a
copy for review prior to moving ahead wit authorizing preparation of a second
assessment. At this time, it is unknown if ere is a willing seller; however, Mr. Grimsmo
did indicate at the public infonnation meet" g for the National Guard/Community Center
that he hoped a decision would be made so n on the proposed project.
Questions to ask: With no approved proje t for the parcel, is there a risk to the HRA? Is
the HRA purchasing the parcel on speculat on? Can the HRA afford to purchase the
parcel?
HRA SOURCES OF FUNDS:
Cash Balance ofHRA General or TIF Fun s:
Under preparation by Rick WolfstelIer to distributed at the HRA meeting.
HRA USES OF FUNDS:
Approved or committed 1998 expenditure not included in the WolfstelIer's report
Schleif property: $83,000 CFD ($20,000 c sh, amortized over 30 years, balloon 4 years)
Hawkins property: $55,700 Purchase Agre ment.
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HRA AGENDA
JANUARY 28, 1998
H-Window - $10,000.
Hoisington - $30,000.
Industrial Reserve Fund - $75,000
Carlson: $130,000 Purchase Option (5-year option, $1,000 annual option fee)
TIF revenue projections are being recalcula ed following the 1997 reduction in CII
classification rates to determine the long-t effects on existing TIF Districts.
Additionally are the concerns for future TIF revenues with the proposed additional
reduction in CII classification rates by Legis tors: From 4% to 3.65% in 1998, to 3.5% in
1999, with a reduction goal of 3%. Mark ff, Ehlers and Associates, will have the
projections ready for the meeting with sugg stions for financing.
B. Alternative Action:
1. A motion authorizing an appraisal tir the parcel described as Lot 1,2,3,4, and 5,
Block 13, City of Monticello and to equest a copy of the Phase I Environmental
Assessment from the current owner.
2.
A motion to make an offer of
obtaining an appraisal.
for the said parcel without
3. A motion of no interest in acquiring e parcel described as Lot 1,2,3,4, and 5,
Block 13, City of Monticello.
4. A motion to table any action.
C. Recommendation:
No recommendation is given. It is my und standing that the City has a recently
completed Phase I Environmental Assessm t for this parcel.
D. Supporting Data:
None. To be distributed at the meeting.
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lIRA S
December 31, 1997
Cash Balance $528,892
Less: TIP Debt Service for Bonds $209,450
HACA Penalty for Chelsea Road $ 37,500
Adjustment (public notice) $ 401
Subtotal $247,351 $281,541
Less: TIP Pay-as-you-go (Jan '98)
Nawco (H-Window) $ 10,000
Standard Iron $ 32,197
Russ & Sharon Martie $ 2,500
Custom Canopy $ 7,427
~ssissippi Sl10res $ 2 479
Subtotal $ 54,603
Funds Available $226,938
Less: Commitments
Scl11eif ($83,000CFD) $ 20,000
. Hawkins $ 55,700
Nawco $ 10,000
Hoisington $ 30,000
Subtotal $115,700
$111,238
Less: Industrial Reserve Fund $150,000
Carlson Option ($130,000) $ LOOO
Subtotal $151,000
<$39,762>
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REQUEST FOR SPECIAL MEETING OF THE MONTICELLO HRA
TO: EXECUTIVE DIRECI'OR, MONTICEllO H SING AND REDEVELOPMENT AU1HORITY
FROM: STEVE ANDREWS, DAN FRIE
DATE: 01122/98
Ollie:
Please call for a special meeting of the Monticello BRA to discuss possible
purchase of land for the proposed co nnity center by the HRA
SteVe Andrews ~
Dan Frie
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