2021-03-10 CC Minutes - Approved

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City of Centerville Council Meeting Minutes March 10, 2021 Motion by Council Member Koski , seconded by Council Member Lakso to Approve Items #1, #2, and #7 of the Consent Agenda, as presented. A roll-call vote was taken. Mayor Love and Council Members Lakso, King, Koski & Mosher voted in favor. Motion carried. Administrator Statz asked to run through the revisions to these documents before Council Member King asked his questions or made his comments. He explained that that an individual is interested in purchasing the former Vincenzo Catering Service property, as well as the property to the south which is under joint ownership. The City ordinance states that upon the sale of the property, the property must be connect to municipal water. He stated that the prospective buyer has approached him regarding the policy and stated that his intent is to redevelop the property in the near future. He stated that the City would like to foster the development spirit by being helpful if possible. He stated that staff shared information regarding the program to offer half price fees and offered the option of assessing those fees to the property or entering into an agreement to escrow funds to complete the work if for some reason the development did not happen within a certain period of time similar to other businesses and locations. The prospective buyer asked if the City could do a 5-year sunset to either redevelop the property or to connect to municipal water. He reminded the Council that the cost to connect is generally around $18,000, which can be a hindrance to redevelopment when the City is attempting to encourage redevelopment. He stated that the idea behind escrowing these funds with a sunset date would be as an incentive to redevelop and put the funds away to ensure that there is the ability to force the connection if redevelopment fails. He explained that there are four agreements because there are two different properties and two different things happening: assessing the connection fees; escrowing the funds for the physical hook-up. He noted that the reason there are four (4) agreements as there are two (2) separate properties with connection fees that will be assessed to the property taxes and the necessity to ensure that the physical connection is completed and paid for. Administrator Statz explained the fees in the agreements and explained that the original escrow agreement had 150% of the cost and that has been revised to 100% and an added a clause that the quotes will be updated on a regular basis ensuring that the funds escrowed meet the required fees. He reiterated that the City has done this with other properties in the past. He stated he is recommending that change be made to both escrow agreements. He noted that only one of the assessment agreements are changing and should read: “The cost listed below fully satisfies payment in full for a lateral benefit fee and four (4) water access fees.” He stated that this property has four (4) residential equivalent hook-ups: the catering business has two (2) and the apartments up above have two (2). He explained that the discount is 50% of the fees that are on the assessment agreement, so the subject parcel would pay $7,700 which without the discount program would have been $15,400. Council Member King asked if the $18,000 connection cost was for each property. Administrator Statz stated the escrow totals $18,000 and explained that the existing owner obtained a quote from Olson Sewer, to complete both connections which totaled $18,000. Council Member King asked about page 23, paragraph C, where it states “the cost listed below that satisfies payment in full for a lateral benefit fee and a water access fee. The amount listed Page 3 of 8