Loading...
11-07-1988 CC MIN e e e MINUTES OF THE ELK RIVER CITY COUNCIL MEETING HELD AT THE ELK RIVER PUBLIC LIBRARY MONDAY. NOVEMBER 7. 1988 MEMBERS PRESENT: Mayor Gunkel. Councilmembers Tralle. Holmgren. and Schuldt MEMBERS ABSENT: Councilmember Dobel ALSO PRESENT: Pat Klaers. Development Development Associates. City Administrator; Dick Fursman. Economic Coordinator; Mike Mulrooney. Economic Consultant; and Jeff Schoenbauer. Baurer and Ltd. 1. Pursuant to due call and notice thereof. the meeting of the Elk River City Council was called to order at 7:00 p.m. 2. Consideration of 11/7/88 City Council Agenda Councilmember Holmgren requested to be added to the agenda as Item 7.3. and the City Administrator indicated that he had a number of general update items to be included under agenda Item 7.2. COUNCILMEMBER AS AMENDED . CARRIED 4-0. SCHULDT MOVED TO APPROVED THE 11/7 / 88 CITY COUNCIL AGENDA COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION 3.1. Consideration of 10/10/88 City Council Minutes COUNCILMEMBER TRALLE MOVED TO ACCEPT THE 10/10/88 CITY COUNCIL MINUTES AS SUBMITTED. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 4-0. 3.2. Consideration of 10/19/88 City Council Minutes COUNCILMEMBER TRALLE MOVED TO ACCEPT THE 10/19/88 CITY COUNCIL MINUTES AS SUBMITTED. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 4-0. 3.3 Consideration of 10/24/88 City Council Minutes Mayor Gunkel noted that the second paragraph under Item 4.1. on page 2 had a typo where the 2X acre minimum listed under Ring 2 residential should be 2~ acre minimum. Additionally. she indicated that on page 3 regarding the discussion with Mr. John Williams. that a sentence should be added which indicated that Mr. Williams has property that lies right on the boarder of two difference residential zones. COUNCILMEMBER TRALLE MOVED TO APPROVE THE 10/24/88 CITY COUNCIL MINUTES AS AMENDED. COUNCILMEMBER HOLMGREN SECONDED THE MOTION.. THE MOTION CARRIED-4-0. Page 2 e City Council Minutes 11/7/88 4. Open Mike There was nobody present for this agenda item. 5.1. Economic Development Discussion Regarding the Central Business District Redevelopment Proposal and the Design Contract for the Boardwalk Project Economic Development Coordinator. Richard Fursman. provided the City Council with some background information on the boardwalk proposal. It was indicated that this topic was discussed during the 10/10/88 City Council meeting. Staff was directed to prepare a Request For Proposal (RFP) for the design and study of the boardwalk. It was noted that at the 10/10 meeting. discussion took place regarding the financing of such a boardwalk would most likely come from the use of Tax Increment Financing related to the redevelopment of the hardware store. e Mr. Fursman indicated that the City sent out 23 RFP's to various engineering and architectural firms. The City received 12 proposals by the deadline. The former Research and Development Committee of the Economic Development Commission reviewed the five finalist proposals. These five proposals were selected from the 12 by Dick Fursman. The Research and Development Committee selected two finalists. The finalists were interviewed by Dick Fursman and Mike Mulrooney. The consensus of the staff and Research and Development Committee was to hire Baurer and Associates. Ltd. to do a master plan for the proposed boardwalk. In response to questions to the City Council. Dick indicated that anticipated funding for this master plan would also come from Tax Increment Financing (TIF) revenue based on the redevelopment of the hardware store. If the Council decided not to go forward with using TIF funds for the construction of the boardwalk. then Economic Development Authority funds could be used to finance the study. Dick also indicated that this proposal is on a fast time frame so that he can submit a grant application (Celebrate 1990) for up to $25.000 for financial assistance in the construction of the boardwalk. The grant deadline is December 16. 1988. Additionally. if it is possible to receive Central Minnesota Initiative Fund financing for this proposal. such funding would be explored. The City Boardwalk indicated proposals boardwalk; stages and Administrator distributed a section of the proposal for the Project as submitted by Baurer and Associates. It was that three different proposals are being requested; the three call for a basic. intermediate and elaborate design of the and furthermore. that any of the designs can be built in need not be completed all at one time. e At this time. Jeff Schoenbauer was introduced to the City Council and Jeff gave a general background on Baurer and Associates. Ltd. and the experience the firm has in park planning. In response to questions from the City Council. Mike Mulrooney and Dick Fursman indicated that an informational meeting has been held with the property owners along the section of Main Street that backs up to the Mississippi River and that as a whole. the property owners are very positive for the implementation of this project. Page 3 City Council Minutes 11/7/88 e Dick stated that there are many objectives for the Boardwalk and these objectives include: 1. In the long term, an increase in tourism in Elk River 2. Develop more commercial pedestrian traffic for the businesses 3. Clean up the area and make it more aesthetically pleasing 4. Become a focal point for community activities and celebrations 5. Become a intricate part of the overall city wide trail system 6. Provide additional greenspace in the Central Business District In response to City Council questions regarding the use of Tax Increment Financing to fund the boardwalk project, it was indicated by the staff that without this financial assistance, the project could not be financially undertaken by the City alone or assessed out to the benefited property owners. It was stated that the fire which detroyed the hardware store, should be viewed as an opportunity and something that the City should take advantage of in order to follow up on the concept developed by the Governor's Design Team and emphasized at the 2001 Conferences. e The staff noted that the goal of emphasizing the river for increased economic development in the downtown has been discussed by the City Council since the May, 1970 Central Business District Report. Staff indicated that the opportunity presented with the redevelopment of the hardware store is one that should not be passed up by the City. It was stated by the staff that the expansion of the hardware store and the increase scale of development for a new structure at this location will help the City accomplish its economic development goals. This redevelopment project is hoped to "start the ball rolling" for additional redevelopment of other buildings causing a "ripple effect" within the downtown area. Some members of the City Council questioned whether use of Tax Increment Financing monies for the proposed boardwalk was appropriate and according to the intent of the Tax Increment Financing law. Additionally, some Councilmembers strongly requested financial information for the redevelopment before they could justify using Tax Increment Financing to assist in the redevelopment of the hardware store. Staff indicated that such figures should be available at approximately the same time that the boardwalk master plan would be completed by Baurer and Associates (approximately 12/2/88). e Staff requested Council approval to spend $11,000 for having Baurer and Associates, Ltd. to develop a boardwalk master plan complete with survey and elevation work. Page 4 e City Council Minutes 11/7 /88 COUNCILMEMBER SCHULDT MOVED TO APPROVE SPENDING $11.000 TO HAVE BAURER AND ASSOCIATES. LTD. COMPLETE. A BOARDWALK MASTER PLAN. COMPLETE WITH SURVEY WORK AND ELEVATION WORK. COUNCILMEMBER TRALLE SECONDED THE MOTION. THE MOTION CARRIED 4-0. Mike Mulrooney and Dick Fursman discussed with the City Council the concept of doing a redevelopment district for the reconstruction of the hardware store. This would involve the use of Tax Increment Financing funds. but would be different than the eight year economic development projects that have utilized TIF funds in the past. The redevelopment district could last as long as 20 years and revenues captured from this project to be used to help reconstruct the hardware store at a more extensive level than would typically take place. and for the construction of the previously discussed boardwalk. The redevelopment district is anticipated to be only the building site under question and that the City could very clearly meet the letter of the law and the "but for" requirement for use of TIF funds. The rational for using TIF funds for this project is to financially help reconstruct a hardware store that is much more than a basic building and which would help the City accomplish its goal of emphasizing the river as an economic development tool. e Some members of the City Council again questioned whether the use of TIF for the boardwalk. or even for the reconstruction of the hardware store was appropriate according to the intent of the law. Also the financial need for use of TIF in the reconstruction of the hardware store was questioned. The staff indicated that information on the intent and philosophy of the Tax Increment Financing Law would be distributed to the City Council and that financial figures on the need for city assistance in the reconstruction of the hardware store would also be distributed to the City Council when available in approximately 30 days. COUNCILMEMBER TRALLE MOVED TO HAVE THE STAFF EXPLORE THE FEASIBILITY OF CREATING A REDEVELOPMENT DISTRICT AND A TAX INCREMENT FINANCING PLAN AT THE SITE OF THE OLD HARDWARE STORE AND DENTIST OFFICE FOR THE RECONSTRUCTION OF A NEW HARDWARE STORE. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 4-0. 5.2. Discussion: Economic Development Activities Update Dick Fursman and Mike Mulrooney updated the City Council on: 1) the Hardees proposal to purchase the Sherburne County property on the edge of the downtown district; 2) the business retention surveys being sent out to local businesses; 3) the revolving loan status; and 4) the future marketing plan that would target specific needs of Elk River. 5.3. Softball Lights Lease/Purchase Agreement e COUNCIL MEMBER TRALLE MOVED TO APPROVE RESOLUTION 88-91. A RESOLUTION WHICH STATES THAT THE LEASE PURCHASE AGREEMENT ENTERED INTO BETWEEN THE CITY AND FIRST CONTINENTAL LEASING. CORPORATION FOR THE SOFTBALL COMPLEX LIGHTS BE DESIGNATED AS A . QUALIFIED TAX EXEMPT OBLIGATION. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 4-0. Page 5 e City Council Minutes 11/7 /88 5.4. Public Improvement Deferred Assessment Resolutions COUNCILMEHBER SCHULDT MOVED TO APPROVE RESOLUTION 88-92. A RESOLUTION APPROVING THE DEFERRED ASSESSMENT OF JOSEPH ZIMMERMAN FOR THE DEFERRED PAYMENT OF SPECIAL ASSESSMENTS' RELATED TO THE 1988 MAIN STREET IMPROVEMENT. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 4-0. COUNCILMEHBER SCHULDT MOVED TO APPROVE RESOLUTION 88-93. A RESOLUTION APPROVING THE DEFERRED ASSESSMENT FOR DORIS TRASK FOR THE DEFERRAL OF PAYMENT OF SPECIAL ASSESSMENTS 'RELATING TO THE 1988 MAIN STREET IMPROVEMENT. COUNCILMEMBER TRALLE SECONDED THE MOTION. THE MOTION CARRIED 4-0. 5.5 Use of Jackson Square for the Hospice Project COUNCILMEMBER TRALLE MOVED TO APPROVE THE USE OF TREES IN THE JACKSON SQUARE AREA FOR THE HOSPICE SECOND ANNUAL "LIGHT UP A LIFE CHRISTMAS TREE PROJECT. " COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 4-0. e It was noted that use of the square would be acceptable to the City Council for this project in future years until further notice is given by the City Council. It was noted that possible changes in the Jackson Square area may not make it appropriate for such a project to take place in this location. 6. Check Register COUNCILMEMBER HOLMGREN MOVED TO APPROVE THE CHECK REGISTER AS SUBMITTED. COUNCILMEMBER TRALLE SECONDED THE MOTION. THE MOTION CARRIED 4-0. 7.1 Mayor Gunkel Report on Burlington Northern Railroad Meeting Mayor Gunkel stated that she met with Street/Park Superintendent. Phil Hals and a representative of Burlington Northern Railroad in an effort to resolve issues so that the City can purchase the abandoned railroad bed running north and south through Elk River. The Railroad representative indicated a strong desire to make substantial progress in the selling of this property before the end of 1988 based on the reassignment of railroad personnel. The Railroad representative indicated that they not only desire to sell the abandoned railroad bed in Elk River but also the section of the abandoned railroad bed in Lavonia Township north of Elk River. The railroad desires to sell both of these properties at the same time. e Page 6 e City Council Minutes 11/7 /88 Phil Hals has been directed to make contact with representatives of this township in order to ascertain their position regarding possible purchase of this abandoned railroad bed. The City intends to use this abandoned railroad bed as part of its City wide trail system for hiking and bicycling. Mayor Gunkel indicated that the offer submitted by the City (approximately $650 per acre) has been essentially rejected by the railroad as being too low, and that the railroad would consider an offer more in line with value of adjacent properties. In this regard, the City needs to put some statistical information together in order to justify our offer and the Mayor stated that we may have to increase our offer to the railroad to something in the neighborhood of $750-$800 per acre. Mayor Gunkel indicated that it has been anticipated that the City would use funds from its Capital Projects Reserve Fund for this purchase. 7.2 City Administrator Update on ICMA Conference e City Administrator indicated that the conference in Charlotte, North Carolina offered many workshops that were relevant to topics in Elk River. Topics that were especially interesting related to City Manager/Police Department relations, Police Budgets, Emergency Preparedness Plans and Employee Evaluations as related to performance incentive pay plans. City Administrator distributed a handout which showed the Main Street/Highway 169 intersection. The handout included a revised street striping scheme including signs which designate which traffic lanes are for which traffic movements. In basic terms, the plan calls for the inside lane of the east/west traffic movement to be designated for left turns only. City Administrator discussed with the City Council the concept of uniforms for the office clerical staff. At this time the City Council rejected such a concept for the administrative clerical staff. City Council requested the City Administrator to proceed with the advertisement for possible vacancies on City Boards and Commissions. Additionally, Staff was directed to send letters to Board and Commission members whose term expires at the end of 1988 to determine their desires for reappointment. 7.3 Councilmember Holmgren e Staff was requested to have the striping on the west side of Gates Avenue include a bicycle lane; attempt to have the weeds at the northwest corner of the Gates and Main intersection mowed; have street striping placed on the dam bridge surface; inform Nord Motors that used cars are not to be placed on the grass surface; and to inform Mr. Chip Martin that the selling of used cars on his property is not an allowed use. e e e Page 7 City Council Minutes 11/7 /88 There being no further business. COUNCILMEMBER TRALLE MOVED TO ADJOURN THE 11/7/88 MEETING OF THE ELK RIVER CITY COUNCIL. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 4-0. The meeting of the Elk River City Council adjourned at approximately 9:35 p.m. Respectfully submitted. p~~c--~ () K/~ St- Patrick D. Klaers City Administrator