05-03-2021 Regular CCMMeeting of the Elk River City Council
Held at the Elk River City Hall
Monday, May 3, 2021
Members Present: Mayor John Dietz, Councilmembers Mike Beyer, Matt Westgaard,
and Jennifer Wagner
Members Absent: Councilmember Garrett Christianson
Staff Present: City Administrator Calvin Portner, Economic Development
Specialist Colleen Eddy, Planning Manager Zack Carlton, Cablecaster
Micaela Strand, and Deputy Clerk Jessica Miller
I . Call Meeting to Order
Pursuant to due call and notice thereof, the meeting of the Elk River City Council
was called to order at 6:41p.m. by Mayor Dietz.
2. Pledge of Allegiance
Pledge of Allegiance was recited.
3. Consider Agenda
Moved by Councilmember Wagner and seconded by Councilmember Beyer
to approve the agenda. Motion carried 4-0.
4. Consent Agenda
Moved by Councihnember Beyer and seconded by Councilmember Wagner
to approve:
4.1 April 19, 2021, minutes.
4.2 Check register as outlined in the staff report.
4.3 Temporary On -Sale Liquor License for the City of Elk River for Elk
River Fest on July 3, 2021, with the condition alcohol must be confined
to an area enclosed by a fence with a secured, controlled access. Wrist
band control is required for patrons 21 and over.
4.4 Temporary On -Sale Liquor Licenses to the Davis Darrow Meyer
American Legion Post 112 for events on June 12, 2021, and July 15 —18,
2021, with the following conditions:
1. Alcohol must be confined to an area enclosed by a fence with a
secured, controlled access and limited to the beer garden and
grandstand. Wrist band control is required for patrons 21 and over.
2. Applicant must contact the Sherburne County Sheriffs Office to
arrange for security needs.
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May 3, 2021
Page 2
4.5 Transient Merchant License allowing overnight storage for Allen
Pantelis to sell kites, ground spinners, wood carvings, and windsocks
from the parking lot of Wash-n-Fill,18296 Zane Street NW, weekends
May 1 through October 31, subject to the following conditions:
1. One 24-square foot sign shall be allowed. A temporary sign permit
must be obtained prior to display of the sign. Contact the Planning
Department at 763.635.1000.
2. The merchandise displayed shall not occupy more than 100 square
feet [Section 38-414(6)].
3. Applicant must remain on the asphalt surface and no product shall
be displayed in the landscaped areas.
4. No electrical services shall be across any drive or walking surface.
5. If traffic becomes a problem around the temporary site, the sales
area shall be delineated with a barrier to restrict traffic.
6. The area shall be maintained free of debris and kept in an orderly
condition.
7. Trailer shall be no larger than 8x12.
8. No signage may be posted on the trailer.
9. Trailer to be parked overnight only as shown on the site plan.
Overnight parking is limited to Friday through Sunday of the sales
weekends.
4.6 Lot Split: Osberg Addition as outlined in the staff report.
Motion carried 4-0.
S. Open Forum
No one appeared for Open Forum.
6.1 Inside Elk River Videos
Ms. Strand had the Council draw job assignments as part of the Inside Elk River
video series. The results are as follows:
Councilmember Wagner — liquor delivery
Councilmember Beyer — install ice at Furniture and Things Community Event
Center
Mayor Dietz — road repair
Councilmember Westgaard — police officer
Councilmember Christianson — project management
7.1 Tax Increment Financing District No. 27
Mr. Portner presented the staff report. He indicated the Housing and
Redevelopment Authority recommended approval at their meeting immediately
preceding tonight's Council meeting.
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Mikaela Huot, Baker Tilly Municipal Advisors LLC, reviewed a PowerPoint
outlining creation of a Tax Increment Financing (TIF) District and adoption of a
TIF plan.
Mayor Dietz opened the public hearing.
Mark Buchholz, Stonewood Development, thanked the Council for hearing his
request. He stated he is excited to be a part of the City of Elk River.
There being no one else to speak to this issue, Mayor Dietz closed the public
hearing.
Councilmember Westgaard indicated he believes looking at the validation on the
appraisal is the biggest piece for him to make sure the project aligns. He believes the
HRA's recommendation and Commissioner Ovall's comment during the HRA
meeting summarizes the point well that the city's normal term is 15 years, but the
state allows for a longer term. He indicated he agrees with the HRA that this is a
good opportunity to get the site redeveloped. He explained supporting this request
makes sense to him given the project, project site, condition of the property, and the
opportunities that exist to assist the project.
Mayor Dietz questioned the project's tax value once the project is complete. Ms.
Huot indicated the estimated tax value of both phases completed is $21 million plus
any future inflation.
Mayor Dietz indicated he does not recall anyone mentioning the 20-year term when
this item was previously discussed. He stated he is not a fan of extending the term to
20 years as he believes 20 years is too long of a term and deviates too far from the
city's policy.
Councilmember Wagner indicated she believes this project is unique in that it
includes both redevelopment and housing. She explained the city has not extended
the 15-year term for housing but has extended the term for redevelopment. She has
concerns about deviating from the policy but HRA Commissioner Ovall did a great
job at the preceding HRA meeting of explaining how the Finance Committee arrived
at their approval recommendation.
Councilmember Beyer indicated he understands this is a big commitment and a
deviation from typical city policy but sometimes you must take a chance. He
explained he is also looking at it with the perspective of getting two major items
checked off with creating housing and getting rid of a lot that has been vacant for
some time.
Ms. Huot clarified the action requested tonight is to consider creation of the Tax
Increment Financing District No. 27 and adoption of the Tax Increment Financing
Plan and in no way obligates the city. She explained if approved, this provides the
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city with the authority to use TIF and enter into an agreement with the developer.
She indicated it also allows the developer to begin site preparation.
Patrick Briggs, Briggs Companies, explained the purchase agreement is subject to the
20-year tax increment financing and the buyer will not proceed if the TIF is not for
at least 20 years. He noted there will not be any movement on the site until the 20-
year term is approved.
Mr. Buchholz explained the eagerness for beginning construction is how quickly the
costs of construction are increasing. He explained they still feel the project is feasible,
but costs are already significantly higher than when the project was first presented.
He indicated they want to make this work but would like to get started with
contractors and subcontractors but cannot begin until they are certain the TIF will
be for 20 years.
Mayor Dietz indicated three councilmembers have expressed interest in allowing the
20-year tax increment financing, but the contract will not be considered until the
May 17 meeting. He stated he believes this is a good project, but he is nervous about
extending to 20 years and needs additional time to consider.
Councilmember Westgaard stated the real numbers need to be flushed out before the
contract is considered but he has heard the Council say this is a valuable project and
a majority say they are in favor of a deviation in term length given the special
circumstances of this application and the project site.
Ms. Huot indicated the intent of tonight's conversation surrounding the developer's
request is to provide as much information as possible to the Council without the
Council making a final decision on the contract.
Moved by Councilmember Wagner and seconded by Councilmember
Westgaard to establish Tax Increment Financing (Redevelopment) District
No. 27 and adopt a Tax Increment Financing Plan. Motion carried 4-0.
8.1 All Aboard Minnesota
Mr. Portner presented the staff report.
Councilmember Wagner indicated she researched this project and believes this is out
of the Council's area of expertise. She stated although she understands why Mr.
Beaumont is asking for support, she does not believe this project would benefit Elk
River and she is not willing to put her name on it. Councilmembers Westgaard and
Beyer concurred adding the train would not make a stop in Elk River.
The Council asked Mr. Portner to let Mr. Beaumont know the Council is not
interested in providing a resolution of support.
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May 3, 2021
8.2 Discuss Work Session Items
Mr. Portner presented the staff report. There were no additions.
9. Council Liaison Updates
Councilmembers provided updates as outlined in the respective advisory board's
minutes.
Council asked staff to prepare a staff report listing the committees and commissions
for this item to be included in the packet.
10. Adjournment
There being no further business, Mayor Dietz adjourned the meeting of the Elk
River City Council at 7:35 p.m.
Minutes prepared by Jessica Miller.
Tina Allard, City Clerk
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