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10-10-1994 CC MIN - SPECIAL e SPECIAL MEETING OF THE ELK RIVER CITY COUNCIL HELD AT THE ELK RIVER CITY HALL MONDAY, OCTOBER 10, 1994 Members Present: Mayor Duitsman, Council member Dietz, Scheel, Farber and Holmgren Members Absent: None Staff Present: Pat Klaers, City Administrator; Lori Johnson, Finance Director; Terry Maurer, City Engineer; Peter Beck, City Attorney 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 7:00 p.m. by Mayor Duitsman. 2. Consider Aaenda Item 6.1. "Proclamation" was added to the agenda. 'e COUNCllMEMBER HOLMGREN MOVED TO APPROVE THE OCTOBER 10, 1994 CITY COUNCIL AGENDA AS AMENDED, COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 5-0. 3. Consider Consent Aaenda COUNCILMEMBER HOLMGREN MOVED TO APPROVE THE CONSENT AGENDA AS FOLLOWS: 5.1. AUTHORIZE SPEED LIMIT STUDY ON LANDERS STREET - POSTPONED 5.2. RESOLUTION NO. 94-102, A RESOLUTION APPROVING THE OFFICIAL SUMMARY OF ORDINANCE NO. 94-12, AN ORDINANCE AMENDING THE CITY OF ELK RIVER ZONING MAP TO REZONE CERTAIN PROPERTY TO ME (MINERAL EXCAVATION OVERLAY) - APPROVED 5.3. AUTHORIZE PURCHASE OF TRIUMPH 1190 CARPET CLEANING MACHINE FROM JIFFY JR. PRODUCTS FOR $1,999.99. - APPROVED 5.4. CIGARETTE LICENSE FOR SUPERAMERICA - APPROVED 5.5. EXEMPTION FROM LAWFUL GAMBLING LICENSE FOR BROADWAY BAR AND PIZZA, (PROPER ECONOMIC RESOURCE MANAGEMENT) - POSTPONED FOR FURTHER INFORMATION 5.6. NO PARKING SIGNS ON ZANE STREET BETWEEN NAPA AND HIGHWAY 10- APPROVED e COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 5-0. City Council Minutes October 10,1994 poge 2 e 4. Assessment Public Hearin<;J for the Western Area Phase IIlmorovement Proiect Terry Maurer, City Engineer, provided background information for the proposed project. He outlined the projected assessments as follows: Trunk sanitary sewer and water Lateral sanitary sewer and water Lateral Storm Sewer Street/Residential Street/other Trunk Storm Sewer $3,800 Acre $40/front foot $8/front foot $22/front foot $27/front foot $600/ Acre Using a color-coded map, Terry explained which areas would be receiving the various types of assessments. Peter Beck, City Attorney, explained the laws regarding the appeal process for assessments. Mayor Duitsman opened the public hearing. Terry Maurer stated that the interest rate for the assessments is 7.5%. He noted that repayment schedules are 5-10-15 years, based on the size of the assessment for a particular property. If a property owner has more than one parcel, the repayment schedule would reflect the total of the assessment for all the parcels combined. e Lori Johnson, Finance Director, explained that there would be no interest charges if the assessment was paid in full by November 30, 1994. Sandra Roy, 228008 152nd Street, Zimmerman, owner of Custom Motors, expressed her objection to the proposed assessment. She stated that the property cannot be developed for residential use because of its narrow size. Joe Bickman, 18707 Highway 10, owner of 19+ acres, objected to the proposed assessment. He stated that he would be paying approximately $1,000 a month for the next 15 years. Mr. Bickman stated that he feels the developers and the County should pay for the project, since they requested it. Lori Johnson noted that Mr. Bickman may be eligible for a senior citizen deferral. The property must be homesteaded to qualify, and if the property is sold, the assessment must be paid off at that time. She further stated that certain income qualifications must be met in order to qualify for the deferral. Mike Boelter, 13325 207th A venue NW, owner of 5.34 acres on Highway 10, stated that he would not benefit from the improvements. He stated that most of his property is located below the floodplain level. Mr. Boelter explained that he has buildings on this site; one 45 ft. by 40 ft. and the other is 125 ft. by 45 ft. He stated that this property was recently down-zoned by the City Council and he felt it has been devalued. e Tom Hartman, 18675 Macon Street, expressed his objection to the amount of the assessment. City Council Minutes October 10. 1994 Page 3 e Joe Bickman, 18707 Highway 10. questioned how the assessments were calculated. City Engineer Terry Maurer provided this information. Mayor Duitsman stated that all public roads are deducted from the assessment but that private roads are assessed. Loren Chichoine. 18588 Naples Street, expressed his objection to the proposed assessment. stating that he felt he would receive to benefit. Frank Guck. 18591 Naples Street. owner of a 3-acre parcel, expressed his objection to the proposed assessment. stating that he felt it was of no value to him and would not increase the value of his property. Discussion followed regarding the private road segment at 168th and Naples. Pat Klaers. City Administrator. stated that the residents on the private road have the right to petition the City to take over the road and provide services. . Sara Hartman, 18675 Macon Street, questioned why the area north of Highway was drawn into the project. Mayor Duitsman stated formal discussions for development in that area are now in progress. Terry Maurer added that the Elk Motel and bowling alley are north of Highway 10 and were included in Phase I. Tom Goenner. 13701 186th Street, expressed his objection to the assessment. e Joe Bickman. 18707 Highway 10, questioned who was interested in development in the area in question. Mayor Duitsman replied that Guardian Angels has plans for a senior housing project north of Highway 10. Sandra Roy. questioned if it was possible to defer the assessment until their property was developed. Lori Johnson stated that the only deferrals are for senior citizens and green acres. Teresa Chichoine, 18588 Naples, questioned why the residents on the private road should pay the assessment when service will not be extended down the road. Terry Maurer explained that the utilities would be installed when the roads became improved public streets. Mayor Duitsman questioned whether or not the contract could changed to delete the north Highway 10 area under discussion. Terry Maurer stated that the only significant cost that would be deleted would be jacking under Highway 10. Joe Bickman questioned the interest rate for senior citizen deferrals. Lori Johnson stated that it would be 1.5 percent less. which would be determined by the interest rate of the bonds. Frank Guck. 18591 Naples. questioned why the Waco Street area could not be included in the project. Terry Maurer stated that they would need to extend the sewer line further west in order to include that area. e Discussion followed regarding the amount of the proposed assessments and benefit to property owners. Mayor Duitsman stated that if the City levies an City Council Minutes October 10, 1994 Page 4 e assessment on a property, the property value should increase at least the amount of the assessment. He explained that if a property owner felt he could prove that the benefit was less that the assessment, it could to go court. Mayor Duitsman closed the public hearing. Councilmember Holmgren provided comments regarding his view of the "skyrocketing" land values in the Elk River area and the increasing rate of development. Pat Klaers, City Administrator, explained that the City must meet their bond obligations for the project, and must either increase the assessment amount per acre or scale back the project if the North Highway 10 area was deleted from the project. Councilmember Farber questioned how benefit to property is proven. Peter Beck, City Attorney, stated that an appraisal would be done to determine the development potential for the property, that is; its highest and best use. Mayor Duitsman re-opened the publiC hearing. - Carol Mills, representative for Guardian Angels, stated that they are already in the process of platting 12.5 acres for the development of senior housing north of Highway 10. Ms. Mills stated that their project is being planned in four phases. She stated that if the extension were postponed, costs would be increased later. She added that she understood that Guardian Angels property would be included in the project, and that if there was some question now, she would need to speak with the Guardian Angels Board of Directors. Discussion followed regarding how the project would be affected if smaller residential parcel were removed from the project. Bill Gaane stated that he is in favor of the improvement project. He stated that he has purchased the 40-acre Marion Moon property and would like to develop it. This area is north of Highway 10. Sara Hartman questioned how many parcels are in the Naples Street and 186th area. Terry Maurer stated that are approximately 20 acres total, with lot sizes ranging from less than one acre to three-plus acres. Discussion followed regarding Green Acres deferrals. Mayor Duitsman acknowledged receipt of letters of objection from the following property owners: Joseph and Delores Bickman, Thomas and Sara Hartman, Sandra Roy, Loren and Teresa Chicoine and Frank Guck. Mayor Duitsman closed the public hearing. e COUNCILMEMBER HOLMGREN MOVED TO ADOPT RESOLUTION 94-103, A RESOLUTION ADOPTING THE FINAL ASSESSMENT ROLL FOR THE WESTERN AREA PHASE n IMPROVEMENTS AS PRESENTED EXCEPT FOR THE FOLLOWING PROPERTIES; City Council Minutes October 10, 1994 Page 5 e OWNER(Sl JERRY AND NORMA GALLATI GERALD WAITE DONALD AND DONNA RAHN SANDRA ROY LOREN AND TERESA CHICOINE CAROL LESKE JAMES AND PATTI SWANSON JAMES WAITE FRANK AND BERNICE GUCK JOSEPH AND MICHAEL BICKMAN JOSEPH AND DELORES BICKMAN THOMAS AND MAJORIE GOENNER DONALD LARSON MILES AND KAREN KNUTSON MARCELLA JOHN PARCEL NUMBER 75-131-1210 75-131-1100 75-131-1101 75-131-1211 75-131-1400 75-131-1405 75-131-1406 75-131-1415 75-131-1420 75-131-1430 75-131-1435 75-131-1445 75-131-1450 75-131-1455 75-131-1460 AND, TO ADJOURN THE CONSIDERATION OF THESE PROPERTIES TO THE NOVEMBER 21, 1994: CITY COUNCIL MEETING. COUNCILMEMBER FARBER SECONDED THE MOTION. Discussion followed regarding obtaining appraisals the properties of exception. COUNCILMEMBER HOLMGREN MOVED TO RESCIND THE PREVIOUS MOTION. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 5-0. e' COUNCILMEMBER DIETZ MOVED TO DENY THE ASSESSMENT APPEAL FOR THE TOM AND SARA HARTMAN PROPERTIES, PARCEL NO. 75-131-1425, 75-132-2260, 75-132- 2265, 75-132-2405 AND 75-132-2410, BASED ON THE FACT THAT THE ASSESSMENT IS UNIFORM IN APPLICATION THRROUGHOUT THE AREA AND THAT THE PROPERTY IS BENEFITED BY AT LEAST THE AMOUNT OF THE ASSESSMENT. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 4-1. COUNCILMEMBER SCHEEL OPPOSED. COUNCILMEMBER FARBER MOVED TO DENY THE ASSESSMENT APPEAL FOR THE JOSEPH AND DELORES BICKMAN PROPERTY, PARCEL NO. 75-131-1440,19.36 ACRES, BASED ON THE FACT THAT THE ASSESSMENT IS UNIFORM IN APPLICATION THROUGHOUT THE AREA AND THAT THE PROPERTY IS BENEFITED BY AT LEAST THE AMOUNT OF THE ASSESSMENT. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 4-1. COUNCILMEMBER SCHEEL OPPOSED. COUNCILMEMBER HOLMGREN MOVED TO ADOPT RESOLUTION 94-103, A RESOLUTION ADOPTING THE FINAL ASSESSMENT ROLL FOR THE WESTERN AREA PHASE II IMPROVEMENTS AS PRESENTED EXCEPT FOR THE FOLLOWING PROPERTIES; AND, TO ADJOURN THE CONSIDERATION OF THESE PROPERTIES TO THE NOVEMBER 21, 1994 CITY COUNCIL MEETING: e OWNER(Sl JERRY AND NORMA GALLATI GERALD WAITE DONALD AND DONNA RAHN SANDRA ROY LOREN AND TERESA CHICOINE PARCEL NUMBER 75-131-1210 75-131-1100 75-131-1101 75-131-1211 75-131-1400 City Council Minutes October 10, ] 994 Page 6 e OWNERCSl CAROL LESKE JAMES AND PAtTI SWANSON JAMES WAITE FRANK AND BERNICE GUCK JOSEPH AND MICHAEL BICKMAN JOSEPH AND DELORES BICKMAN THOMAS AND MAJORIE GOENNER DONALD LARSON MILES AND KAREN KNUTSON MARCELLA JOHN PARCEL NUMBER 75-131-1405 75- 131 - 1406 75-131-1415 75-131-1420 75-131-1430 75-131-1435 75-131-1445 75-131-1450 75-131-1455 75-131-1460 COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 4-0-1. COUNCILMEMBER HOLMGREN ABSTAINED. Mayor Duitsman advised the owners of parcels of exception did not need to serve a notice of appeal within 30 days on the Mayor or City Administrator until after the November 21, 1994 City Council meeting. - It was the consensus of the City Council that the City Administrator would contact the firm of Panger Benson to provide a raw land appraisal on 2 to 3 parcels in the Naples and 186th Street area to determine benefit. Also, it was noted that written notice will be sent to the property owners of exception, advising them of the November 21, 1994 public hearing to be held at 6:00 p.m. Mayor Duitsman suggested that Mr. Mike Boelter meet with the City Engineer, Terry Maurer, to review his property for floodplain designation. 5.7. PLANNING SECRETARY APPOINTMENT AND PART TIME CLERICAL AND RECEPTIONIST REQUESTS COUNCllMEMBER HOLMGREN MOVED TO APPROVE THE CLERICAL REQUESTS AS OUTlINED IN THE 10/6/94 MEMO FROM THE CITY ADMINISTRATOR. COUNCllMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 5-0. 6.1 . Proclamation COUNCllMEMBER SCHEEL MOVED TO ADOPT A PROCLAMATION WHICH PROCLAIMS OCTOBER 17 - 21, 1994, TO BE ELK RIVER MANUFACTURING WEEK. COUNCllMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 5-0. Pat Klaers noted that the grand opening of the new Highway 101-169 Bridge would be held at Babcock Park on Wednesday, October 26th at 1 :00 p.m. e City Council Minutes October 10, 1994 Page 7 e 8. Adiournment There being no further business, COUNCILMEMBER FARBER MOVED TO ADJOURN THE MEETING. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0. The special meeting of the Elk River City Council adjourned at 8:50 p.m. Respectfully submitted, ~~(~ Debbie Kleckner Recording Secretary e e