2012-01-11 WS Minutes - Approved

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City Council 2012-01-11 at 7:25 p.m. Minutes of Work Session Present were Mayor Tom Wilharber, Council Members Jeff Paar, Steve King, D Love, and Ben Fehrenbacher. Also present were Mark Statz of Stantec, City Attorney Kurt Glaser, and Finance Director Mike Jeziorski. New Home Construction Abatement. Staff provided a report on possible abatement to entice new home construction. Staff had met with local developer Rick Carlson who reported that he was optimistic about development this year. He believes that at least ten lots will be sold for development in 2012. Using that number for anticipated permits with no abatement and with 20 building permits with abatement, staff ran a report that suggested that abatements for three years would create a deficit of $150,000 and if granted for five years would leave a gap of about $300,000. Council member Fehrenbacher expressed concern that the staff analysis did not take present value of permit and hook-up revenue for the accelerated development. Staff will do that calculation, but believes that there would still be a gap that could not be made up. After discussion the consensus was that the matter would be tabled for a few months to see what development occurs in the first months of the year and then look at it again. Goals for 2012 . The Council reviewed a draft of possible goals for 2012. The Council discussed economic development and what might be done to encourage more development. Unfortunately commercial building activity is way down in the entire metro area, so there is little that could be done to stimulate growth. The st development in Lino Lakes adjoining 21 Avenue south of Main Street has been on hold for a couple of years. The land owner, Gerald Rehbein, indicated that Ryan Companies will need to decide by October of 2012, or the purchase option will expire. The Council would like to find a way to market some of the City land along Commerce Drive, but the value is very much dependent upon the Lino Lakes project. The Council reviewed goals related to revenue and budget. Discussion ensued regarding the possibility of establishing a Street Lighting Utility, and other measures to increase revenue and reduce the levy. Consensus was that these measures would only take money from the same taxpayers by a different means. Council asked staff to include some goals to implement an outreach to Centerville business owners as well as goals to try to get a feel about citizen satisfaction with services. Everyone agreed that it will be difficult to reduce the levy, but efforts should be made to make sure that we provide the highest level of satisfaction with services delivered by the City. A goal will be added to provide an annual joint meeting with Parks and Rec as well as Planning & Zoning to make sure that everyone is working together.