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HomeMy WebLinkAbout12-20-10-S EN HILLS Approved: January 10, 2011 CITY OF ARDEN HILLS,MINNESOTA SPECIAL CITY COUNCIL MEETING DECEMBER 20,2010 7:00 P.M. -ARDEN HILLS CITY COUNCIL CHAMBERS CALL TO ORDER/ROLL CALL Pursuant to due call and notice thereof, Mayor Stan Harpstead called to order the special City Council meeting at 7:01 p.m. Present: Mayor Stan Harpstead, Council Members David Grant, Brenda Holden, Fran Holmes, and David McClung. Absent: None. Also present: City Administrator Patrick Klaers; Community Development Director Jill Hutmacher; City Planner Meagan Beekman; Public Works Director Terry Maurer; and Deputy Clerk Rebecca Brazys. PLEDGE OF ALLEGIANCE 1. APPROVAL OF AGENDA MOTION: Councilmember Holden moved and Councilmember Grant seconded a motion to approve the meeting agenda. The motion carried unanimously(570). 2. PUBLIC INQUIRIESANFORMATIONAL None. 3. APPROVAL OF MINUTES 3.A City Council Worksession,March 8,2010 3.11 Special City Council Meeting, April 10, 2010 3.0 Emergency City Council Meeting, April 14,2010 3.1) Special City Council Meeting,April 19,2010 3.E City Council Meeting—Closed,December 6,2010 ARDEN HILLS SPECIAL CITY COUNCIL—DECEMBER 20, 2010 2 MOTION: Mayor Harpstead moved and Councilmember McClung seconded the motion to approve the minutes as presented. Motion carried unanimously {5-0.) 4. CONSENT AGENDA - 4.A Approve Ordinance 2010-016 Adopting the 2011 Utility Use Charges - MOTION: Councilmember Grant moved and Mayor Har stead seconded the motion to approve Consent Agenda. Motion carried unanimous) 5-0. 5. PULLED CONSENT ITEMS None. 6. PUBLIC HEARINGS None. 7. NEW BUSINESS None. 8. UNFINISHED BUSINESS &A Proposed TIF District—Presbyterian Homes Redevelopment Community Development Director Hutmacher explained that at the December 13, 2010, meeting the Council reviewed and discussed the proposed modification to the Development Program for Development District No. 1 and the establishment of Tax Increment Financing District No. 4 to assist with the redevelopment of Presbyterian Homes of Arden Hills. The Council provided direction regarding negotiations on the TIF contract with Presbyterian Homes. She then reviewed the changes to the contract as requested by the Council. Section 1.1 Definitions. A definition for Environmental Response Actions was added. The change to the definition of Housing Revenue Bonds reflects the changes to financing provisions in Article VII of the contract. Section 3.5, subsection(d). Environmental matters. Changes to this section include: • The City and Developer will cooperate on seeking grants from the State and other sources; • The Developer will enter into any agreements necessary to disburse and administer grant proceeds; • The Developer shall not be obligated to pay more than $50,000 over and above grant proceeds for environmental remediation; • If the Developer's costs for environmental remediation exceed $50,000 over and above grant proceeds, the Developer will notify the City. The City then has two options: ARDEN HILLS SPECIAL CITY COUNCIL—DECEMBER 20, 2010 3 o Require the Developer to clear and seed the property and provide the City with either an open space covenant or a restrictive easement (to be determined by the City); or o Notify the Developer that the City will proceed to closing and accept responsibility for any remaining environmental mitigation beyond the - $50,000 obligation of the Developer. Section 4.5 Construction of Utility Improvements and County Road Improvements: Because the City of Roseville may want to assess their portion of the improvements to County Road D, it will need to be a publicly bid project. The Developer and/or its contractor may choose to bid on the project on the same basis as other bidders. The Developer may also choose to pay 100% of project costs (including Roseville's portion) and construct the road improvements itself. The Developer is required to complete the project no later than December 31, 2016. Section 7.1 Developer Financing: The conduit debt issuance fee will be calculated as 1% of the first $5 million in bonds, 0.5% of the next $15 million ($5-$20 million), and 0.25% of any bond amount above $20 million. If Presbyterian Homes issues $3 S million in bonds, this will result in a total fee of $170,000. The fee will be calculated on an aggregate basis. For example, if consecutive bonds of $15, $12, and $11 million are issued, the fees will be $100,000, $42,500, and $27,500 for a total fee of$170,000. In all other respects, conduit debt fees will be consistent with the City's existing Private Activity Bond Policies. Community Development Director Hutmacher explained there are three motions that require Council action this evening. Councilmember Holden questioned the escrow requirement. Community Development Director Hutmacher explained that the escrow covers administrative and legal costs until this document is approved. Councilmember Holden asked who the owner of the triangle property will be in the event that environmental mitigation exceeds the $50,000 obligation of the Developer. Community Development Director Hutmacher responded that the Developer will be the owner but restrictive covenants prevent development. Councilmember Grant referred to Section 7 and asked if the timing of the calculations affect the dollar amount. Community Development Director Hutmacher responded the timing would not affect the dollar amount. She then explained that the Developer wants their contractor to be able to bid on the County Road D improvement project like any other bidder. The Developer is concerned about the timing of the County Road D project and it may be more cost effective for them to do the entire project at their expense. Staff sees no problem for a legal standpoint with this proposal. The estimated project cost is $150,000. ARDEN HILLS SPECIAL CITY COUNCIL—DECEMBER 20, 2010 4 Mayor Harpstead commented that this sounds like a deal between the Developer and Roseville. Councilmember Grant questioned if the City would still oversee the project, if the Developer and the Developer's contractor were involved. Community Development Director Hutmacher stated that the project would still have to meet our specifications. Public Works Director Maurer stated that Roseville is OK with Presbyterian Homes constructing the road project. Councilmember Holden questioned what Section 4.5 does for the City of Arden Hills. Community Development Director Hutmacher explained the City would still not pay anything _ and would get their portion of the road at no cost. Public Works Director Maurer stated the City would have less disruption because Presbyterian Homes would do the road project and their redevelopment at the same time. Councilmember Holden questioned why Section 4.5 needs to be in the contract. Community Development Director Hutmacher stated that inserting this provision into the contract now saves needing to amend the contract to allow it at a later date. She added that it saves an assessment to the residents on County Road D and it seems like a neighborly thing to do. Councilmember Holmes stated that including Section 4.5 doesn't hurt the City so she doesn't see any reason not to include it and it may help residents. MOTION: Councilmember McClun1Z moved and Mayor Har stead seconded the motion to adopt Resolution 2010-081 a resolution approving contract for private development and awarding the sale of and providing the form terms covenants and directions for the issuance of its S1,115,000 Tax Increment Revenue Note. Motion carried on a 4-1 vote. Ayes: Councilmembers Grant, Holmes,McClung and Mayor Harpstead Nays: Councilmember Holden MOTION: Councilmember McClung moved and Councilmember Holmes seconded the motion to adopt Resolution 2010-082 a resolution adopting a modification to the Development Program for Development District No. 1• and establishin Tax Increment Financing District No. 4 therein and adopting a Tax Increment Finance Plan thereof. Motion carried unanimous) 5-0. MOTION: Councilmember McClung moved and Mayor Harpstead seconded the motion to adopt Resolution 2010-083 a resolution authorizing an interfund loan for ARDEN HILLS SPECIAL CITY COUNCIL—DECEMBER 20, 2010 5 advance of certain costs in connection with Tax Increment Financing District No. 4. Motion carried unanimously 9. COUNCIL COMMENTS Councilmember Grant stated the City should look at the minimum utility charge as there are many residents that don't reach the minimum usage amount. We may want to consider reducing it. Mayor Harpstead commented that the minimum charge covers the cost of providing utilities and that lowering the minimum would result in some residents paying the higher rate earlier. ADJOURN MOTION: Councilmember McClunjj moved and Mayor Har stead seconded a motion to _ adjourn. The motion carried unanimously (5-0). Mayor Harpstead adjourned the Special City Council Meeting at 7:20 p.m. 1 04�-Z Patrick Klaers David Grant City Administrator Mayor