01-31-1994 CC MIN - JOINT
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JOINT MEETING OF THE ELK RIVER CITY COUNCIL
AND SCHOOL BOARD
HELD AT THE ELK RIVER CITY HALL
MONDAY, JANUARY 31, 1994
Members Present:
Mayor Duitsman, Councilmembers Dietz, Scheel, Farber, and
Holmgren
Members Absent:
None
Staff Present:
Patrick Klaers, City Administrator; Sandra Thackeray, City Clerk; Bill
Rubin, Economic Development Coordinator; Phil Hals, Street
Superintendent; and Terry Maurer, City Engineer
1 . Call Meetina To Order
Pursuant to due call and notice thereof, the meeting of the Elk River City Council
was called to order at 6:00 p.m. by Mayor Duitsman.
2.
Consider 1/31/94 Aaenda
COUNCILMEMBER HOLMGREN MOVED TO APPROVE THE 1/31/94 CITY COUNCil
AGENDA. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION
CARRIED 5-0.
3.
Consider Consent Aoenda
5.1. 3.2% OFF-SALE BEER LICENSE AND CIGARETTE LICENSE - BEAUDRY EXPRESS -
APPROVED
5.3. NATIONAL CONFERENCE ATTENDANCE BY CITY PLANNER ~ APPROVED
5.4. MECHANICAL AMUSEMENT DEVICE LICENSE - DYNAMICS SPORTS, INC. -
APPROVED
5.5. PRELIMINARY DEVELOPMENT SCHEDULE FOR ELK PARK CENTER - COUNCIL
INFORMATION
5.6. PAY ESTIMATES:
a. Pay Estimate #2 - Highway 10 Lift Station - APPROVED
b. Pay Estimate #3 - Meadowvale Heights Trunk Utility Improvements -
APPROVED
c. Pay Estimate # 1 - Northeast Area Utility Improvements - APPROVED
COUNCILMEMBER SCHEEL MOVED TO APPROVE THE CONSENT AGENDA.
COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0.
4.
Consider Tax Increment Financina Plan for Tax Increment Financina District No. 12
(EDA Main Street Redevelopment Proiect
Economic Development Coordinator Bill Rubin reviewed the original request for
tax increment financing in the amount of $235,000 for TIF District No. 12. He stated
that the request was to support the proposed construction of a two-story 12,000
City Council Minutes
January 3], ] 994
Page 2
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square foot retail office facility to be located on the EDA Main Street
redevelopment site. Bill reviewed the background of the request which storted
with a public hearing on November 15, 1993.
Bill Rubin reviewed the history of the site. The site has been vacant since a fire
which destroyed existing buildings six years ago. Efforts to redevelop the site were
done in vain. The property was then acquired in 1991 for $109,000 by the City
and title conveyed to the EDA. TIF plans 1 and 3 were amended to reflect the
budgetary expense of acquiring the property.
Bill Rubin stated that at the present time, the developers ore requesting $235,000
in TIF assistance; $165,000 for site preparation and $70,000 for land acquisition.
Chris Bulow, agent for the developer for the project, indicated that this project
was started one yeor ago. The project is a feasible project. Mr. Bulow stated that
the downtown corporation and the Chamber of Commerce met to discuss this
project. No negative comments from either group were heord regording the
project.
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Gary Santwire, consultant for the developer, stated that the site as it is, is
unacceptable. Mr. Santwire stated that the project, if developed as proposed,
will produce a building valued at $625,000 which will pay real estate taxes and
will provide $70,000 to pay back funds the City originally spent to purchase the
property. If the property becomes a park, approximately $50,000 will be
necessary to make the improvements. This $50,000 along with the $70,000 the
City will lose from the Kjellberg development will total $120,000 that the City will
lose.
Council member Holmgren spoke regording the size of the project and the fact
that the building is the maximum size the project can support. He also discussed
the issue of the developer moving the project along with the impression that the
project would be approved. He stated that the fact that the Council changed
direction toword the end of the project was unfair to the developer.
COUNCILMEMBER HOLMGREN MOVED TO APPROVE THE TIF PLAN FOR TIF DISTRICT
NO. 12. COUNCILMEMBER SCHEEL SECONDED THE MOTION. THE MOTION FAILED 2-
3. MA VOR DUITSMAN AND COUNCILMEMBERS DIETZ AND FARBER VOTED AGAINST
THE MOTION.
COUNCILMEMBER HOLMGREN MOVED TO DIRECT BILL RUBIN AND THE EDA TO
CONTINUE TO MARKET THE SITE OR TO SELL THE SITE OUTRIGHT TO A DEVELOPER.
COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 5-0.
5.7. Consider Altemate meetinq dates for City Council and Sherburne County Boord
ioint meetina
It was the consensus of the Council to hold a joint meeting with the Sherburne
County Board on Morch 7, 1994. This is a regularly scheduled Council meeting.
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City Council Minutes
January 31, 1994
Page 3
5.2. Update on Applications for Boards and Commissions
The City Clerk advised the City Council that one vacancy exists on both the
Library Board and the Planning Commission. One application has been received
for each vacant position.
COUNCILMEMBER HOLMGREN MOVED TO CALL A SPECIAL MEETING OF THE CITY
COUNCIL ON FEBRUARY 7, 1994, AT 5:30 P.M. TO INTERVIEW APPLICANTS FOR THE
PLANNING COMMISSION AND THE LIBRARY BOARD. COUNCILMEMBER FARBER
SECONDED THE MOTION. THE MOTION CARRIED 5-0.
COUNCILMEMBER DIETZ MOVED TO ACCEPT THE RESIGNATION OF DEBRA
ANDERSON FROM THE LIBRARY BOARD. COUNCILMEMBER HOLMGREN SECONDED
THE MOTION. THE MOTION CARRIED 5-0.
6. Other Business/Staff Reports
The City Administrator requested that the Fire inspections report by Fire Chief
Anderson be moved to the February 14th agenda due to the length of the
February 7th agenda. The Council indicated it consent to this request.
The City Administrator informed the Council that Ken Beaudry has requested to
place a sign for his new business "Beaudry Express" on city right-of-way. The City
Administrator stated that staff has suggested that Beaudry purchase 6th Street
from the City and in exchange the City will finance and construct the turn lane
on Highway 10 into this area.
COUNCILMEMBER HOLMGREN MOVED TO DIRECT STAFF TO PURSUE NEGOTIATIONS
WITH KEN BEAUDRY REGARDING THE SALE OF 6TH STREET AND THE CONSTRUCTION
OF A TURN LANE ON HIGHWAY 10. COUNCILMEMBER FARBER SECONDED THE
MOTION. THE MOTION CARRIED 5-0.
The City Clerk stated that Anthony Mikols has requested that the Council consider
purchasing a framed print of elk by a river to display in City Hall. He felt the print
does a fine job of portraying "Elk River" and offered the print and frame at a cost
of $200.00.
COUNCILMEMBER HOLMGREN MOVED TO PURCHASE THE FRAMED PRINT FROM
ANTHONY MIKOLS FOR $200.00. COUNCILMEMBER FARBER SECONDED THE
MOTION. THE MOTION CARRIED 5-0.
7.
Recess
The Council recessed at 6:37 p.m. to move to the training room for the joint
meeting with the School Board.
City Council Minutes
January 31, 1994
Page 4
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JOINT MEETING WITH DISTRICT 728 SCHOOL BOARD
School Board
Members Present:
Chairman Tim Kelly, Board Members Ty Bischoff,
Kathleen Poate, James Osterman, Patricia Schaber,
Mary McDevitt, and Rachael Leonard
Also Present:
Doctor Flannery, School Superintendent
1. Reconvene City Council Meeting
The City Council meeting was reconvened by Mayor Duitsman at 6:40 p.m.
2. Introductions
Introductions of City Council and Staff and School Board Members and Staff were
made at this time.
3.
Consider LCMR Grant Proposal by Mike Niziolek
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Mike Niziolek stated that he is requesting support for a grant application. The
grant is for the construction of a environmental learning center building to be
located at Woodland Trails Park and for the development of a Community
Environmental Education Program.
Mayor Duitsman explained that the City Council heard Mr. Niziolek's proposal at
the January 24 Council meeting. At the time the council decided to take no
action until the School Board heard the request and made a recommendation.
Dr. Flannery stated that he applauds Mike Niziolek's efforts and stated that it is his
belief that the School District will invest in this concept in the next 5 to 10 years.
He questioned the timing of this project and stated that the school district will not
be able to commit any money at this time.
Councilmember Farber stated that although the Council felt this was a worthy
project, it felt the City could not commit $70,000 on this short of notice.
Council member Scheel indicated her concern of ongoing costs. Mr. Niziolek
stated that the funds would not be needed until 1995 and 1996.
School Board Chair Tim Kelly suggested that a committee be formed to work on
this issue. Mr. Niziolek stated that this grant will again be available in two years
but it will be 1999-2000 before the actual project could take place. He further
stated that by waiting, the City will be competing against more applicants.
COUNCILMEMBER HOLMGREN MOVED TO AUTHORIZE THE EXPENDITURE OF $70,000
PAYABLE IN 1995 AND 1996 AS LOCAL MATCHING FUNDS FOR THE LCMR GRANT
APPLICATION. COUNCILMEMBER SCHEEL SECONDED THE MOTION.
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City Council Minutes
January 31, 1994
Page 5
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Mayor Duitsman stated that he would be in favor of giving $40,000.
Councilmember Dietz felt that this request for funds and project was moving too
fast and stated that he would like more time to study the request.
THE MOTION FAILED 1-4. MAYOR DUITSMAN AND COUNCILMEMBERS DIETZ, SCHEEL,
AND FARBER VOTED AGAINST THE MOTION.
COUNCILMEMBER FARBER MOVED TO AUTHORIZE THE EXPENDITURE OF $40,000 AS
LOCAL MATCHING FUNDS FOR THE LCMR GRANT PAYABLE IN TWO INSTALLMENTS IN
1995 AND 1996. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE
MOTION CARRIED 5-0.
Chairman Kelly stated that although the School Board is not ready to offer money
for this project at this time, it would send a letter of support for the project.
BOARD MEMBER SCHARBER MOVED TO DRAFT A JOINT RESOLUTION BETWEEN THE
SCHOOL BOARD AND THE CITY SHOWING SUPPORT FOR THE ENVIRONMENTAL
LEARNING CENTER PROJECT. BOARD MEMBER LEONARD SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
COUNCILMEMBER HOLMGREN MOVED TO JOIN WITH THE SCHOOL BOARD IN THE
RESOLUTION OF SUPPORT FOR THE ENVIRONMENTAL LEARNING CENTER PROJECT.
COUNCILMEMBER SCHEEL SECONDED THE MOTION. THE MOTION CARRIED 5-0.
6.
Update on Second Ice Hockev Arena Proposal - Jeff Gonooll
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Jeff Gongoll updated the School Board and City Council on the progress of the
proposed ice arena. He indicated that this issue will be before the EDA at its next
meeting to request funding of a financial feasibility study. He informed the Board
and Council members that the total project is estimated to cost 2.5 million dollars,
however, the land has to be turned over to the City to make the project viable.
School Board Member Jim Osterman gave an update from the land committee
discus~ions regarding this proposal and the issue of traffic. He indicated that it
was felt that traffic will not be a concern because most events will be held during
off hours of the school. He stated that the land committee supported the hockey
arena concept at this site.
SCHOOL BOARD MEMBER OSTERMAN MOVED TO DEED THE LAND TO THE
APPROPRIATE GOVERNMENT BODY (EDA OR CITY) CONTINGENT UPON SOIL
BORINGS AND OTHER NECESSARY TESTS TURNING OUT POSITIVE AND WITH THE
STIPULATION THAT IF PROBLEMS ARISE, THE LAND TRANSACTION WOULD NOT TAKE
PLACE. BOARD MEMBER BISCHOFF SECONDED THE MOTION. THE MOTION CARRIED
6-0-1. BOARD MEMBER POATE ABSTAINED.
Mayor Duitsman emphasized the fact that if the City is to own and manage the
facility, then the City does not intend to lose money at any time during this
project.
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Council member Dietz questioned whether the School Board is prepared to pay
more for ice time with the new arena. Jim Osterman stated that he felt the cost
to the school would be less with the new arena.
City Council Minutes
January 31, 1994
Page 6
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Councilmember Scheel indicated that the ice arena was a good idea, however,
she hoped that the same support would be shown to all of the children in Elk
River, not just those involved in hockey.
4. Review School Maintenance Facility Proiect
Dr. Flannery commented on several projects that have been done in
cooperation between the City and the School District. Some of the projects
mentioned included jOint occupancy of the city maintenance building, pOlice
liaison, D.A.R.E., Oak Knoll park, and the Recreation position.
Dr. Flannery requested the City to extend the School's lease for use of the City
maintenance garage. This extension would end 1211/95.
COUNCILMEMBER HOLMGREN MOVED TO EXTEND THE LEASE FOR THE SCHOOL
DISTRICT'S USE OF THE CITY MAINTENANCE GARAGE FOR ONE YEAR.
COUNCILMEMBER FARBE~ SECONDED THE MOTION. THE MOTION CARRIED 5-0.
Dr. Flannery informed the Council that the School District is looking for property to
locate a maintenance building. He indicated that one of the locations being
considered is a piece of city property located in Oak Knoll park.
5.
Streets
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City Engineer, Terry Maurer, reviewed the two options available for improvements
to widen School Street. He reviewed a three-lane and a four-lane option. After
discussion on both options, it was the consensus of the School District that a three
lane design would be safer for the school children. The Council indicated its
desire to see a four-lane design as it felt this would be the best long term design
for the city traffic flow.
Terry Maurer also reviewed proposed designs for the intersections of School Street
at Jackson Avenue and Freeport Avenue. Terry Maurer recommended a four
lane option for both intersections.
Dr. Flannery stated that the School District has four concerns:
· Children crossing the street
· Sidewalks on the south side
· Lincoln School -- concern for children due to its proximity to the street
· The School District would like to see an exploration of other east/west
routes through the City.
Chair Tim Kelly indicated that the School Board would continue discussions on this
subject at future Board meetings.
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Discussion was held regarding the student parking at Lion's Park. Dr. Flannery
indicated that the school district has taken care of the situation by creating
another parking lot at the school. Street Superintendent. Phil Hals, indicated that
there is no longer a problem with students parking at Lion's Park.
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City Council Minutes
January 3 I, 1994
Page 7
7. Future School Sites
Mayor Duitsman stated that the City wants to work with the school district in
locating a new senior high school in the City of Elk River. He stated that it was a
high priority of the Council that a senior high school be located in Elk River and
offered to work with the School District in finding a location and developing
property at a reasonable cost.
Dr. Flannery indicated that the School Board would be making a decision very
soon regarding school building needs. He indicated that the school district is
considering all possibilities including other cities in the school district.
8. Update on County Road 1
Terry Maurer presented an update on the request to upgrade County Road # 1
from County Road #77 to County Road #32. He indicated that this County
project would not be constructed in 1994, but administration work may take
place so construction could happen in 1995 or 1996.
9.
Update on D.A.R.E. Proaram
The City Administrator informed the Council and Board that the D.A.R.E. house has
been sold. He indicated that the money will finance the secondary D.A.R.E.
program for the next two or three years.
10.
Other Business
Chairman Kelly questioned if the City had any idea as to the plans of Morrell
Transfer. He indicated that the fumes from the trucks are causing problems for
the students and teachers. It was noted that Morrell may be looking for a new
location.
Chairman Kelly indicated that the School Board appreciated the opportunity to
meet with the City Council and requested that this type of meeting take place
on an annual basis.
11. Adjournment
COUNCILMEMBER SCHEEL MOVED TO ADJOURN. COUNCILMEMBER HOLMGREN
SECONDED THE MOTION. THE MOTION CARRIED 5-0.
BOARD MEMBER LEONARD MOVED TO ADJOURN. BOARD MEMBER BISCHOFF
SECONDED THE MOTION. THE MOTION CARRIED 7-0.
The joint meeting of the City Council and School Board adjourned at 8:45 p.m.
Re~ctfUIlY.s~ed. .
c;4~ ~
.-sandra Thackeray
City Clerk