04-06-1992 CC MIN
~ MINUTES OF THE ELK RIVER CITY COUNCIL
HELD AT THE ELK RIVER CITY HALL
MONDAY, APRIL 6, 1992
Members Present: Mayor Tralle, Councilmembers, Dietz, Kropuenske, Schuldt
and Holmgren
Staff Present: Pat Klaers, City Administrator; Sandy Thackeray, City
Clerk; Bill Rubin, Economic Development Coordinator; and
Sue Kapla, Senior Citizen Coordinator
1. Call meeting to order at 6:30 p.m.
Pursuant to due call and notice thereof, the meeting of the Elk River
City Council was called to order at 6:30 p.m. by Mayor Tralle.
2. Consider 4/6/92 City Council Agenda
Item 8.1 - Ericson Letter - was added to the agenda.
COUNCILMEMBER HOLMGREN MOVED TO APPROVE THE 4/6/92 CITY COUNCIL AGENDA
AS AMENDED. COUNCILMEMBER KROPUENSKE SECONDED THE MOTION. THE MOTION
CARRIED 5-0.
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3.
Consider 3/30/92 CITY COUNCIL MINUTES
Councilmember Schuldt requested that paragraph 2, page 7 of the Council
minutes be amended as follows: "Councilmember Schuldt requested Maier
Stewart to contact the bowling alley and request permission to test the
bowling alley sewer system."
COUNCILMEMBER HOLMGREN MOVED TO APPROVE THE 3/30/92 CITY COUNCIL
MINUTES AS AMENDED. COUNCILMEMBER KROPUENSKE SECONDED THE MOTION. THE
MOTION CARRIED 5-0.
4 . Open Mike
Eleanor Todahl presented the Council with the following concerns
regarding the Westwood project.
1. Can the City accept partial payment of an assessment?
2.
Is it possible for a person deferring an
periodic payments on the assessment amount in an
the interest down?
assessment to make
attempt to keep
3.
To whom does the City Council sell its bonds? Why is the interest
rate set at 8%? Eleanor indicated that interest rates are down
and she has Checked with some bonding companies who are paying 6
1/2% interest.
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City Council Minutes
April 6, 1992
Page 2
The Mayor informed Eleanor that her concerns will be addressed by the
Council and Staff at a future City Council meeting when the Westwood project
is on the agenda.
5. Presentation of Legal Services by David Sellergren
David Sellergren informed the Council that he has left the firm of
Larkin, Hoffman and recently joined the firm of Doherty, Rumble and
Butler. He indicated his intention to make a presentation to the
Council of the Doherty, Rumble & Butler legal services and to request
the City of Elk River to continue with his legal services through the
firm of Doherty, Rumble & Butler.
Dave Sellergren introduced Sue Ann Nelson, Chair of the Business
Department. Sue Ann Nelson explained that the firm of Doherty, Rumble
& Butler was the fastest growing law firm last year in the Twin
Cities. She indicated that they have approximately 95 lawyers with the
firm. Dave Sellergren indicated that the firm would be putting
together a team of lawyers to service the City's needs. He indicated
that they are a full-service law firm. Dave Sellergren stated that he
felt a commitment to Elk River since he has been the City and Township
attorney since 1973.
Dave Sellergren introduced the firm's environmental attorney, Mark
Hanson. Mark Hanson presented the Council with an overview of the
Doherty, Rumble & Butler environmental team.
Dave Sellergren indicated that his response to City questions and needs
would be timely. He felt he would be the person dealing mostly with
Elk River, but would have another partner available for the City's
needs and there would also be other attorneys available for specialized
areas such as personnel, land use, real estate, development and public
improvement issues. He stated that the one area that the firm is not
real strong in is related to bond counsel, however, he did not feel
this would affect the City because the City has its own bond consultant.
Dave indicated that at Larkin, Hoffman, over the past five years, he
has moved away from law work and moved into management. He has changed
law firms so he could get back to practicing law. Dave concluded by
stating that what the City would gain by switching law firms was his
personal services as City Attorney.
6.1. Amendments to TIF *1 and *3
Mayor Tralle stated that the City Council held a
March 30 to consider amendments to TIF Plans
stated that this matter was tabled until the April
the Planning Commission had not yet reviewed
proposed amendments.
public hearing on
1 and 3. He further
6 meeting because
and commented on the
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City Council Minutes
April 6, 1992
Page 3
Mayor Tra1le indicated that the amendments to the TIF plans consisted
of paying for public redevelopment costs associated with a proposed
redevelopment project at 307 Main street and the acquisition of
property located between the Elk River Golf Course and the Woodland
Trails Park.
Mayor Tralle stated that the Planning
modifications to the Tax Increment
No. 3 and indicated that there were
proposed modifications to the TIF
Plan.
Commission reviewed the proposed
Financing Plan Districts No. 1 and
no inconsistencies between the
plans in the City's Comprehensive
Although this was not a public hearing, Gary Santwire spoke on behalf
of REP, Ltd of Elk River, Linda and Russ Norha, and David and Mary Lou
Decker. Mr. Santwire stated his objection to the TIF amendment for 307
Main street and felt the project was not a proper use of TIF funds.
Gary Santwire stated that competitiveness should be considered when
using TIF funds. He stated that the proposed redevelopment was in a
competitive field and TIF funds were not necessary. Gary Santwire
requested the Council to table a decision until his clients could
respond in writing.
Pat Klaers stated that the City Council looked at alternatives to the
redevelopment project. The cost effectiveness of creating a new TIF
district was evaluated. It was determined that it would be more cost
effective to use funds from an existing TIF district.
Councilmember Kropuenske indicated that
Santwire's concern regarding competitiveness
must also consider the growth of Elk River
there is merit to the proposed redevelopment
although he shares Gary
in the developer field he
and urban renewal. He felt
project.
COUNCILMEMBER SCHULDT MOVED TO ADOPT RESOLUTION 92-21, A RESOLUTION
APPROVING THE MODIFICATION OF THE TAX INCREMENT FINANCING PLANS FOR TAX
INCREMENT FINANCING DISTRICTS NO. 1 AND NO.3, AND DIRECTING CITY STAFF
TO IMPLEMENT THE MODIFICATION OF TAX INCREMENT FINANCING PLANS NO. 1
AND NO.3. COUNCILMEMBER KROPUENSKE SECONDED THE MOTION.
Councilmember Dietz indicated that the purchase of the land located
near Woodland Trails Park was not necessary and that this was not a
good use of City funds.
Mayor Tralle indicated he was comfortable with the purchase of
land but less comfortable with expenditure of funds
redevelopment project.
the
for
park
the
Councilmember Holmgren stated that he was in agreement
land should be purchased but had reservations regarding
funds for this particular redevelopment project.
that the park
the use of TIF
Councilmember Schuldt stated that the pros outweigh the cons for the
use of TIF funds for the redevelopment project.
THE MOTION CARRIED 4-1. COUNCILMEMBER DIETZ OPPOSED.
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City Council Minutes
April 6, 1992
Page 4
6.2. Consider Western Area Phase I Improvement Project
Pat Klaers stated that a public hearing was held at the March 30
Council meeting on the proposed municipal improvements for the Western
Area Phase I project. At that meeting, discussion was held regarding
the possibility of adding property owned by Mr. and Mrs. Lakoduk to the
assessment area. Pat Klaers indicated that the City Attorney concluded
that this property can be added to the assessment without an additional
public hearing because the proposed additional Lakoduk property is
under the same PID number as the area of the Lakoduk property which was
originally included in the assessment area.
The City Administrator indicated that all assessment options, including
the elimination of certain areas from the assessment project, will be
evaluated and presented to the Council at a later date. The City
Administrator further indicated that adding the extra area to the
project does not necessarily imply that all the property will be
assessed.
Harry Lakoduk, son of Mr. and Mrs. Lakoduk, questioned the assessment
area and whether the property south of County Road 30 is included in
the project. Mayor Tralle stated that the property south of County
Road 30 is not included in the project.
Councilmember Kropuenske indicated that he is uncomfortable with
exempting certain platted, developed property in the area from the
trunk line payment. Councilmember Holmgren concurred with
Councilmember Kropuenske regarding the exemption of certain property
from the project. He stated that this is a fairness issue.
COUNCILMEMBER SCHULDT MOVED TO APPROVE THE POTENTIAL ASSESSMENT AREA AS
PROPOSED, WITH THE ADDITION OF THE ADDITIONAL LAKODUK PROPERTY TO THE
WESTERN AREA PHASE I PROJECT. COUNCILMEMBER DIETZ SECONDED THE
MOTION. THE MOTION CARRIED 5-0.
COUNCI LMEMBER
ORDERING THE
IMPROVEMENT OF
MOTION CARRIED
DIETZ MOVED TO ADOPT RESOLUTION 92-22 A RESOLUTION
IMPROVEMENT IN THE MATTER OF THE PHASE I WESTERN AREA
1992. COUNCILMEMBER SCHULDT SECONDED THE MOTION. THE
4-0-1. COUNCILMEMBER KROPUENSKE ABSTAINED.
Councilmember Kropuenske indicated he abstained because one of his
employers is a substantial landholder in the area and is proposed to be
assessed and feels his vote may be perceived as a conflict of interest.
6.3. Ordinance Amendment/Deferral of Special Assessments
Pat Klaers explained that the proposed ordinance allows the maximum
household income level for special assessment deferrals to be set by
resolution.
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City Council Minutes
April 6, 1992
Page 5
COUNCILMEMBER KROPUENSKE MOVED TO ADOPT ORDINANCE 92-11, AN ORDINANCE
PROVIDING FOR THE DEFERRAL OF SPECIAL ASSESSMENTS BASED UPON HARDSHIP.
COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0.
COUNCILMEMBER KROPUENSKE MOVED TO ADOPT RESOLUTION 92-23, A RESOLUTION
DESIGNATING THE MAXIMUM HOUSEHOLD INCOME LEVEL FOR QUALIFICATION FOR
DEFERRAL OF SPECIAL ASSESSMENTS BASED ON HARDSHIP. COUNCILMEMBER DIETZ
SECONDED THE MOTION. THE MOTION CARRIED 5-0.
6.4. Senior Citizen Annual Report/Suzanne Kapla
Mayor Tralle introduced Sue Kapla, the Senior Citizen Coordinator. Sue
Kapla explained that this was the first time she had been requested to
present an annual report to the City Council. Sue explained that the
Senior Center has been in existence since 1983. She reviewed the
numerous duties which she performs as the Senior Citizen Coordinator.
Sue gave a slide presentation to the Council which showed various
activities in which the seniors are involved. She further explained
each activity after the slide presentation. Sue also informed the
Council of the fund raising events which took place in 1991.
Discussion took place between the Council and Sue Kapla regarding the
Senior Citizen Center and offering programs throughout the community.
In this regard, it was noted that the Senior Citizen Coordinator works
for seniors throughout the City and not solely for the tenants at the
Guardian Angels Foundation. Sue indicated that this is continually
publicized and stressed at every presentation she makes. The
attendance at various events, even the events at the Guardian Angels
facility, shows about a 50-50 split between community-wide seniors and
tenants within the Guardian Angels Foundation. The City Council
indicated that they felt this was an important issue to continue to
stress throughout the community.
The City Council thanked Sue for her annual report and stated that it
was very informative and nice to receive this first ever annual report
and presentation.
At this time an invitation was extended to the Mayor and City Council
to attend the May 14, 1992, noon luncheon at the Senior Citizen Dinning
Center.
7. Check Register
COUNCILMEMBER KROPUENSKE MOVED TO APPROVE THE CHECK REGISTER.
COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0.
8.
Other Business
Councilmember Schuldt expressed concern regarding the Street Department
gate being left unlocked and open the past two weekends. The City
Administrator indicated that he would bring this to the attention of
Street Superintendent and that the situation will be corrected so that
the gate will continually be locked whenever the facility is unattended.
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City Council Minutes
April 6, 1992
Page 6
Counci1member Schuldt
owner of the Landmark
construction activity
weekend.
requested that a check
Motel had obtained a
as a cement truck was
be made to see if the
building permit for
on the site over the
The City Council indicated its concern over: the appearance of new
"glittering" billboards along east Highway 10, as it was understood
that these types of billboards were against the City ordinance; the
continued use of Boelters Towing business as a used car lot; the use
of the parking lot at the intersection of Highway 169 and County Road
33 as a used car sales lot; and the fact that Saxon Motors and Snyders
along east Highway 10 have expanded their parking lot of cars for sale
onto the grass surface whereby the City ordinance requires all parking
locations to be hard surfaced.
8.1. Ericson Letter
Mayor Tralle distributed a letter dated April 3, 1992, that was
addressed to himself from Mr. Scott Ericson. This letter discusses
potential future development activity at the southwest corner of the
intersection of Highway 169 and Jackson Avenue/193rd Avenue. The
letter indicated that they are having difficulty obtaining the final
piece of property in this vicinity in order to put together an
acceptable site for future commercial development. The City Council
discussed the consistency of a commercial development proposal with
City goals and objectives for future increased tax base and employment
opportunities. The City Council indicated that it is in the best
interest of the City for this development to take place and that, if
necessary, they will use the city's power of eminent domain in order to
acquire the Dickenson property in order to put this site together for
future commercial development.
COUNCILMEMBER KROPUENSKE MOVED TO INSTRUCT THE CITY ATTORNEY TO PREPARE
A LETTER TO MR. BILL DICKENSON WHICH INFORMS HIM OF THE CITY'S POSITION
THAT IT WILL USE ITS POWER OF CONDEMNATION IN ORDER TO HELP PUT
TOGETHER AN ACCEPTABLE SITE OF NUMEROUS INDIVIDUALLY OWNED PARCELS FOR
FUTURE DEVELOPMENT IN THIS VICINITY. COUNCILMEMBER DIETZ SECONDED THE
MOTION.
Discussion took place regarding the appropriateness of forcing Mr.
Dickenson to relocate from the existing site.
THE MOTION CARRIED 3-2.
Holmgren were opposed.
Councilmember Schuldt and Councilmember
9. City Administrator Update
Discussion took place regarding the annual City/MnDOT tour.
Council indicated that Thursday, April 30, 1992, was
acceptable date to them for this tour.
The
the
City
most
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City Council Minutes
April 6, 1992
10. Adjournment
There being no further business, COUNCILMEMBER DIETZ MOVED
THE MEETING. COUNCILMEMBER SCHULDT SECONDED THE MOTION.
CARRIED 5-0.
Page 7
TO ADJOURN
THE MOTION
The meeting of the Elk River City Council adjourned at approximately 9:10
p.m.
Respectfully submitted,
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, . "'--7I\....~l.~;I- (
'Sandra Thackeray
City Clerk
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