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06-23-1986 CC MIN e REGULAR SCHEDULED MEETING OF THE ELK RIVER CITY COUNCIL HELD AT THE ELK RIVER CITY HALL MONDAY, JUNE 23, 1986 Members Present: Mayor Hinkle, Councilmembers Gunkel, Schuldt, and Engstrom Members Absent: Councilmember Williams Staff Present: Patrick Klaers, City Administrator Also Present: Jerry Kritzeck, Sherburne County Assessor for City of Elk River; Dale Palmer, Sherburne County Auditor; Carolyn Drude of Ehlers and Associates; and Dick Gongoll, representing the Elk River Investors 1. Mayor Hinkle called the meeting of the Elk River City Council to order at 7:30 p.m. 2. Consideration of June 23,1986 City Council Agenda Item 8.1 - Lease Purchase Plan for Street Department Facility and Item 8.2 - League of Minnesota Cities Conference Report by Councilmember Gunkel, were items added to the June 23 City Council agenda. COUNCILMEMBER GUNKEL MOVED TO APPROVE THE AGENDA FOR THE JUNE 23, 1986 CITY COUNCIL MEETING AS AMENDED. COUNCILMEMBER ENGSTROM SECONDED THE MOTION. THE MOTION PASSED 3-0. e 3. Consideration of June 16, 1986 City Council Minutes Councilmember Gunkel asked that on Page 5, Item 13 of the June 16th minutes the motion include the recommendations of the Planning Commission, and further that the siding be the same "material" on all the buildings, rather than the same "color". COUNCILMEMBER GUNKEL MOVED TO APPROVE THE JUNE 16, 1986 CITY COUNCIL MINUTES AS AMENDED. COUNCILMEMBER SCHULDT SECONDED THE MOTION. THE MOTION PASSED 3-0. 4. Board of Review Mr. Jerry Kritzeck was present to discuss the assessed valuation for property located at 413 Rush Avenue. Mr. Kritzeck explained that the property is on the tax rolls under Marjorie Gilsrud name, but Mr. and Mrs. Herkenhoff have a purchase option on the property and requested a revaluation. Mr. Kritzeck indicated that he made a personal inspection of the property on June 11th and found it to be in a deteriorated condition. Based upon his findings he explained that he felt that a reduction in the assessed valuation from $70,300 down to $65,400 would be fair. e COUNCILMEMBER ENGSTROM MOVED TO ACCEPT THE RECOMMENDATION OF THE SHERBURNE COUNTY ASSESSOR FOR THE CITY OF ELK RIVER, JERRY KRITZECK TO REDUCE THE ASSESSED VALUATION FOR PROPERTY LOCATED AT 413 RUSH AVENUE FROM $70,300 to $65,400. COUNCILMEMBER GUNKEL SECONDED THE MOTION THE MOTION PASSED 4-0. City Council Minutes June 23, 1986 Page Two e 5. County Proposal for City Participation in Financing County Law Enforcement/ Jail Facility Carolyn Drude of Ehlers and Associates indicated that she had met with Sherrill Kurelich of Larkin, Hoffman Friday morning. Ms. Drude further indicated that an adjustment had been made in the size of the bond issue from $1,690,000 to $1,750,000. Patrick Klaers, City Administrator, noted that the County Board has accepted the City of Elk River attorney's lawfirm of Larkin Hoffman as bond consultant. He further noted that the City Attorney has been in contact with County Attorney regarding the fairgrounds property and that the process is moving along to trans- fer the deed and payment of funds owed to the City by the County. Mayor Hinkle reviewed the history of the problem with the fairgrounds property. Dale Palmer indicated that he had spoke with the County Attorney, John MacGibbon, today and Mr. MacGibbon has sent the necessary paperwork to the City's Attorney and has not yet had a response. Mayor Hinkle indicated that it was his under- standing that the City's Attorney has already sent the necessary documents to Mr. MacGibbon to draw up the deed. It was the consensus that City Staff would follow up to insure that the process was moving along in a timely manner. Councilmember Gunkel commented that she felt it was appropriate to make the fairgrounds property payment a stipulation of the approval of the bond issue, inasmuch as the the bond issue is to finance additional space for the County. Councilmember Gunkel explained that the City too has an urgent need for additional ~ space, but is unable to help themselves. COUNCILMEMBER ENGSTROM MOVED TO APPROVE RESOLUTION 86-36, A RESOLUTION RELATING TO $1,750,000 LAW ENFORCEMENT CENTER FINANCING, DETERMINING THE NECESSITY THEREFOR AND AUTHORIZING CERTAIN PROCEEDINGS THEREFOR. COUNCILMEMBER SCHULDT SECONDED THE MOTION. THE MOTION PASSED 4-0. Discussion was carried on regarding the review of the maturity schedule. It was the consensus of the City Council that they personally would not need to review the maturity schedule, and that the City's lawfirm, as bond consultant, would review it and advise the City Council. Further discussion was carried on regarding the sale of bonds by the City on July 21st in relation to the County bond issue sale. It was the consensus of those present that the County bond issue be set for July 29th, 1986 at the County Administration offices at 7:30 p.m. 6. Liquor Licenses for 1986/87 e The City Council reviewed the status of liquor license applications as shown on the list attached to the memo to the Mayor and City Council from Sandy Thackeray, Administrative Secretary, dated June 19, 1986. City Administrator Patrick Klaers noted that since the memo was written, the application and certificate of Insurance for the Sherburne County Lions club had been received. He also noted that the operator of the Empress Gardens Restaurant has stated he is not interested in renewing his liquor license. e e e City Council Minutes June 23, 1986 Page Three COUNCILMEMBER SCHULDT MOVED APPROVAL OF THE LIQUOR LICENSE APPLICATIONS RECEIVED AND AS LISTED ON PAGE 2 OF THE MEMO TO THE MAYOR AND CITY COUNCIL FROM SANDY THACKERAY DATED JUNE 19, 1986, EXCLUDING THE SUNSHINE DEPOT RESTAURANT, AND WITH THE ADDITION OF A TEMPORARY 3.2 NON-INTOXICATING MALT LIQUOR LICENSE APPLICATION FOR THE SHERBURNE COUNTY LIONS CLUB, SUBJECT TO RECEIPT OF ALL CERTIFICATES OF INSURANCE AND FEES PAID. COUNCILMEMBER ENGSTROM SECONDED THE MOTION. THE MOTION PASSED 4-0. Discussion was carried on regarding the fact that the Sunshine Depot Restaurant application for liquor license has not been received, and further, that the owner owes the City past due fees for mechanical amusement device licenses. COUNCILMEMBER SCHULDT MOVED APPROVAL OF THE LIQUOR AND SUNDAY LIQUOR LICENSE FOR THE SUNSHINE DEPOT RESTAURANT, PENDING RECEIPT OF THE APPLICATION, CERTIFICATE OF INSURANCE, PAYMENT OF LIQUOR LICENSE FEES AND PAYMENT OF PAST DUE BILLS BY JULY I, 1986, AND FURTHER, THAT IS THESE DOCUMENTS AND FEES ARE NOT RECEIVED BY JULY I, 1986. THE SUNSHINE DEPOT WILL BE PROHIBITED FROM SERVING LIQUOR. COUNCILMEMBER ENGSTROM SECONDED THE MOTION. THE MOTION PASSED 4-0. 7. Industrial Park Improvements City Administrator Patrick Klaers introduced Mr. Dick Gongoll of the First National Bank of Elk River, representing t4e Elk River Investors Association. City Administrator Klaers indicated that since the May 5, 1986 City Council meeting, he has met with the City Attorney and City Engineer regarding the Industrial Park improvement and the August 1985 Feasibility Study. City Administrator Klaers indicated that of $651,500 total cost of improvements, approximately $192,900 could be paid using MSA funds, leaving approximately $450,00 to be financed through other means. Mr. Klaers further indicated that a large portion of the remaining $450,000 includes site work and grading. Mr. Klaers questioned the City Council whether or not funds generated from the water tower and shopping center tax increment financing district could possibly be used to finance the remaining part of the Industrial Park improvements. Mayor Hinkle indicated that he was in favor of the City supporting the Industrial Park project but he felt that the tax increment financing funds would not be that significant, perhaps $200,000 at best. Councilmember Schuldt indicated that even with $200,000 in TIF money, approximately $200,000 - $250,000 would still be needed. Discussion was carried on among members of the City Council, Dick Gongoll and the City Administrator regarding the extent of grading and site work necessary. Also the possibility of postponing some optional work as a cost-saving measure was discussed, such as: a) extension of utilities to the area west of the Industrial Park, b) stubbing in some, but not all areas proposed, and c) final site work and grading. Dick Gongoll indicated that some of the expensive grading and site work could not be cut out, such as going under the railroad tracks. Councilmember Engstrom questioned whether or not the City was in danger of losing MSA funds if they did not use some of them this year. City Council Minutes June 23. 1986 Page Four ~ City Administrator. Patrick Klaers. stated that this year's MSA funds could be carried over to next year and would be used on the Main Street project. Councilmember Gunkel stated that she felt it was necessary to look at the Main Street project in conjuction with the Industrial Park project, regarding MSA funds. She further stated that by examining the possibility of using 1986 MSA funds in 1987. using 1987 funds. and with the capability of borrowing 1988 funds for use in 1987, and also given the substantial cushion in the MSA discretionary funds - it could then be determined to what extent MSA funds could be used for the Industrial Park improvement project. Councilmember Gunkel further stated that she was in favor of putting in as much of the improvements as soon as possible as scheduling allowed. Discussion was carried on regarding the possibility of the City's maintenance crew doing some of the grading and site work for the Industrial Park project. It was the consensus of the City Council that: a) they were in favor of proceeding with plans for the project. b) that staff investigate the possibility of using TIF funds and determine an approximate dollar amount that would be available, and c) that the MSA funds available for 1986 and 1987 be examined for use on the project. e Discussion was carried on regarding the benefit of the project and the need to move on the project as soon as possible. Further discussion followed regarding the possibility of assessing the amount of funds needed for the project after MSA funds are used, abating the assessment and then paying off the assessment with tax increment funds as they became available. Further discussion followed regarding the reluctance of the City Council to take over the Industrial Park as land owners. It was the consensus of the City Council that the City Administrator be directed to contact the bond consultant, City Attorney, and City Engineer to gather infor- mation and start proceedings for the Industrial Park project. Mr. Gongoll was advised that a calendar schedule would be available for the Investors in July. 8. Administrative Secretary COUNCILMEMBER ENGSTROM MOVED APPROVAL OF THE TITLE CHANGE OF THE ADMINISTRATIVE SECRETARY, SANDY THACKERAY, TO ADMINISTRATIVE SECRETARY/DEPUTY CITY CLERK, AND THAT SHE RECEIVE A 50~/PER HOUR INCREASE IN WAGES. COUNCILMEMBER GUNKEL SECONDED THE MOTION. THE MOTION PASSED 4-0. 8.1. Lease Purchase Plan for Street Department Facility e City Administrator, Patrick Klaers, reported that the Building Committee would be meeting on July 1st at 7:30 p.m. at the First National Bank community room to discuss a proposal for the size of the facility. Mr. Klaers indicated that Phil Hals would be working with them and the matter would be brought back before the City Council on July 7th. City Administrator Klaers indicated that it is expected that at least the outer shell of the building will be constructed in 1986 and the finishing work inside could be done as time permits during the winter. City Council Minutes June 23, 1986 Page Five ~ 3.2. League of Minnesota Cities Conference e e Councilmember Gunkel gave a brief report of each of the sessions she attended at the League of Minnesota Cities Conference in Duluth. COUNCILMEMBER GUNKEL MOVED TO AUTHORIZE THE PURCHASE OF THE STRATEGIC LEADERSHIP CASSETTES SERIES AT A PRICE OF $85.00. COUNCILMEMBER ENGSTROM SECONDED THE MOTION. THE MOTION PASSED 4-0. There being no further business, COUNCILMEMBER SCHULDT MOVED THAT THE MEETING BE ADJOURNED. COUNCILMEMBER ENGSTROM SECONDED THE MOTION. THE MOTION PASSED 4-0. Respectfully submitted, 'JxJJt1t cUt- ;(/ e cK/tV) Deborah Kleckner ~ Recording Secretary