HomeMy WebLinkAbout2013-01-02 Special CC Minutes - Approved
CITY OF CENTERVILLE
SPECIAL CITY COUNCIL MEETING
January 2, 2013
6:30 p.m.
Pursuant to due call and notice thereof, the City of Centerville held their regularly
scheduled meeting of January 2, 2013, at City Hall, 1880 Main Street.
PRESENT:
Mayor Tom Wilharber
Council Member Ben Fehrenbacher
Council Member Steve King
Council Member D. Love
ABSENT:
Council Member Jeff Paar
STAFF:
City Administrator Dallas Larson
Legal Counsel Kurt Glaser
I. CALL TO ORDER
Mayor Wilharber called the meeting to order at 6:30 p.m.
Ms. Tammy Omdal, Northland Securities, Inc., Representative, was present and gave a
brief overview of the needed modifications to the current Development District No. 1
Program which was first approved on September 29, 1987. Ms. Omdal stated that to
address the proposed TIF District 7 which would encompass the proposed development
of Lots 2 and 3, Block 1 of the Royal Oaks Industrial Park for construction of a 15,000-
20,000 square footage manufacturing company which will house an existing Centerville
business. Ms. Omdal stated that the required 30 day notice for public hearing was
waived by both Anoka County and Independent School District #12 who were able to
schedule meetings with their respective boards and provide the City with written
comments and their support.
Ms. Omdal stated that a revised economic development plan including District No. 7 had
been placed before them which incorporated desired modifications by the business owner
which would be discussed more in depth during the public hearing.
Ms. Omdal also stated that the revised document addressed the above stated
modification, its corresponding assumptions for funding, tax ramifications, market values
of the property, timing of the district’s certification to the County for property tax values,
etc. Ms. Omdal stated that the TIF District would be for a period of 9 years with an
estimated $185,000 in tax increment. Ms. Omdal also stated that a public hearing is still
needed to commit economic assistance to HAF Equipment to construct a new
manufacturing facility within the City.
Administrator Larson stated that his discussions with the business owner have included
the potential for hiring additional staff and entering into a minimum assessment
agreement.
City of Centerville
Council Meeting Minutes
January 2, 2013
Mayor Wilharber opened the public hearing at 6:57 p.m.
II. PUBLIC HEARING(S)
1. Amendment of Development District No. 1 & Tax Increment Financing
(Economic Development) District No. 7 ~ Lots 2 & 3, Block 1 Royal Industrial
Park
Ms. Omdal reassured Council that the plan before them this evening is a plan which
outlines the proposed project; however, a development agreement that would be entered
into by the business owner and the City, at a later date, would refine all detailed
requirements.
No one present wished to comment on the project or the TIF Plan.
Motion was made by Council Member Fehrenbacher and seconded by Council
Member Love to close the public hearing at 7:00 p.m. All in favor. Motion passed
unanimously.
2. Res. #13-001 – Amending the Development District No. 1 & Establishing a Tax
Increment Financing (Economic Development) District No. 7 ~ Lots 2 & 3, Block
1 Royal Industrial Park
Ms. Omdal stated that Council had previously been provided with a resolution in their
packets; however, she suggested minor changes to reflect information recently provided
by the business owner and his architect. The most recent plan suggests initial construction
of less than the originally proposed 15,000 square foot building and to also construct the
project in phases. Phase one (1) would take place in 2013 with the construction of a
12,000-15,000 square foot building and phase two (2) would take place within the
following five (5) years of approximately 5,000-18,000 additional square feet being
added to the building.
Ms. Omdal recommended that language on page 3 of the approving resolution, (ii) be
modified to include the new request of the owner and to read “The project will be
completed in phases, with the first phase of 12,000 to 15,000 square feet constructed in
2013 and an additional 5,000 to 18,000 square feet estimated to be constructed within the
next five (5) years.” Ms. Omdal also stated that the Economic Development plan Figure
3-3 had been modified to incorporate the appropriate funding for the reduction in
building size.
Administrator Larson stated that the project tax increment can only support $50,000 in
assistance in Site Improvements/preparation costs for a 12,000 square foot building;
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City of Centerville
Council Meeting Minutes
January 2, 2013
however, if the building is enlarged to 15,000 square feet the assistance could be up to
$60,000.
Motion was made by Council Member Love, seconded by Council Member
Fehrenbacher to Adopt Res. #13-001 - Amending the Development District No. 1 &
Establishing a Tax Increment Financing (Economic Development) District No. 7 ~
Lots 2 & 3, Block 1 Royal Industrial Park with the recommended modified
language. All in favor. Motion passed unanimously.
3.Authorize City Attorney to Prepare Development/Subsidy Agreement
Administrator Larson suggested that Legal Counsel be authorized to prepare the
Development/Subsidy Agreement.
Motion was made by Council Member Fehrenbacher seconded, by Council Member
King to Authorize City Attorney Glaser to Prepare Development/Subsidy
Agreement.
Discussion: Council Member Fehrenbacher requested that Attorney Glaser project the
amount of time that he would incur on this item. Attorney Glaser responded that he
anticipated no longer than one half of a day’s time.
All in favor. Motion passed unanimously.
4. Schedule Public Hearing to Amend Business Subsidy Policy
Administrator Larson felt that Staff would be able to notice a public hearing for January
23, 2013 for both the Business Subsidy Policy and consideration of awarding a Business
Subsidy for the proposed project.
Motion was made by Council Member Love, seconded by Council Member
Fehrenbacher to Schedule a Public Hearing to Amend the Business Subsidy Policy
January 23, 2013. All in favor. Motion passed unanimously.
III. CONSENT AGENDA
1. City of Centerville December 13, 2012 through January 2, 2013 Claims (Check
#27682-27617)
2. Centennial Police Department Claims through December 27, 2012 (Check #9225-
9258)
3.Centennial Fire District Claims through December 21, 2012 (Check #5615-5631)
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Council Meeting Minutes
January 2, 2013
Council Member King requested clarification of several expenditures relating to copy
write music, annual dues for the Building Inspector, union dues and annual memberships
of Public Works staff.
Motion was made by Council Member Fehrenbacher, seconded by Council Member
King to approve the Consent Agenda as presented. All in favor. Motion passed
unanimously.
VI. ADJOURNMENT
Motion was made by Council Member Love, seconded by Council Member
Fehrenbacher to adjourn the Special Meeting of City Council at 7:10 p.m. All in
favor. Motion passed unanimously.
Transcribed by City Staff Member Teresa Bender, City Clerk
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