2012-10-10 CC Closed Session Minutes - Approved

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The City Council of Centerville, Minnesota met in a closed session on Wednesday, October 10, 2012, at 9:40 p.m. in City Hall. Present were Mayor Tom Wilharber, Council members Steve King, D Love and Jeff Paar. Also present were City Attorney Kurt Glaser, and Administrator Dallas Larson. Absent was Council member Ben Fehrenbacher. The purpose of the meeting was to discuss possible industrial development projects that could involve the purchase and/or sale of real estate. City Attorney Glaser indicated that the purpose is a legal reason to hold a closed meeting. Administrator Larson reported feedback from HAF Equipment, Incorporated on the offer recently approved by Council that would assist them with expansion in Centerville. HAF did a financial analysis after receiving the city proposal. They determined that, even with the assistance, the costs of locating 12,000 square feet of building in Centerville would be about $35,000 per year higher than in Forest Lake. Following that report, Larson suggested to the company that the city might be able to offer more, if they would construct 20,000 square feet from the outset. The alternative deal would provide the company $60,000 of front end assistance and sell lot 3 at a cost of $50,000. Of the initial assistance, $10,000 would come from waiving that amount of the permit fees at the time the building permit is applied for. The council discussed the impact of the revised deal. It would use the maximum tax increment financing for the full nine years. While some expressed concern at using the maximum TIF, consensus was that project clearly will not happen unless the city provides this level of assistance, and even then it may not be enough. Consensus was that the city should offer the additional assistance as outlined and commit to the maximum TIF, as it is necessary to retain an existing industry. Administrator Larson reported on the proposal to assist Roland Numeric to locate at the th old public works site, 7087 20 Avenue. The company has slowed down its expansion schedule and is now looking to move to new facilities in 2013. The Company has the city proposal which is to sell them a portion of the site at a cost of approximately $200,000 after subdividing the property into three lots, removing the buildings and installing 1.5 feet of compacted fill. A shared drive would serve the RNC as well as a second building site and the city water tower. Discussions with them will continue. The council reopened the meeting to the public at 9:56 p.m. It was noted that the only issue discussed during the closed portion of the meeting were, real estate purchase and sale matters regarding two development proposals. The motion made by Council member Paar, seconded by Council member King to adjourn at 9:57 p.m. Motion passed unanimously. Dallas Larson, City Administrator