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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. ~ 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. ~ . . . 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 . . . 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. . . . 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. . . . 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. . . . 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 . . . 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, "'} I , . "'--7I\....~l.~;I- ( 'Sandra Thackeray City Clerk \-cl ,tI / f <' \.... ../ .~'. ."'1 ....., ~ ,,-' ></:I . '\7"1 \,.VV"../'-- "'~7 /