Loading...
HomeMy WebLinkAbout2019-07-24 CC Minutes - Approved CITY OF CENTERVILLE CITY COUNCIL MEETING July 24, 2019 6:30 p.m. WORK SESSION Pursuant to due call and notice thereof, the City of Centerville held a scheduled City Council Work Session on July 24, 2019 at City Hall, 1880 Main Street. PRESENT: Mayor Jeff Paar Council Member Russ Koski Council Member Michelle Lakso Council Member Matt Montain Council Member D. Love ABSENT: None. STAFF: City Administrator Mark Statz Finance Director Bruce DeJong City Attorney Kurt Glaser COUNCIL WORK SESSION I. CALL TO ORDER Mayor Paar called the meeting to order at 5:30 p.m. II. ITEMS OF DISCUSSION 1. General Fund – Capital Funds a. Equipment Fund b. Road Fund c. Other funds III. ADJOURNMENT Motion by Council Member Koski, seconded by Council Member Montain to adjourn the Work Session at 6:29 p.m. All in favor. Motion carried. CITY COUNCIL Pursuant to due call and notice thereof, the City of Centerville held a their regularly scheduled City Council Meeting on July 24, 2019 at City Hall, 1880 Main Street. PRESENT: Mayor Jeff Paar Council Member Russ Koski Council Member D. Love Council Member Michelle Lakso Council Member Matt Montain City of Centerville Council Meeting Minutes July 24, 2019 ABSENT: None. STAFF: City Administrator Mark Statz City Attorney Kurt Glaser Finance Director Bruce DeJoing COUNCIL I. CALL TO ORDER Mayor Paar called the meeting to order at 6:35 p.m. II. PLEDGE OF ALLEGIANCE III. APPROVAL OF AGENDA Mayor Paar provided an opportunity for others to add or delete any items. Mayor Paar stated that he desired to delete/remove CenterPoint Energy under Appointments/Presentations as they were unable to attend and he added Checks #32842-32846, 1383E-1387E and Voided Check #32792 and 32796 under Consent Agenda. Motion by Council Member Love, seconded by Council Member Koski to Approve the Agenda as Submitted. All in favor. Motion carried. I. APPOINTMENTS/PRESENTATIONS 1. None. II. PUBLIC HEARING 1. None. III. APPROVAL OF THE MINUTES 1. July 10, 2019 City Council Meeting Minutes Mayor Paar provided Council Members with an opportunity for review, additions or modifications. Motion by Council Member Koski, seconded by Council Member Montain to Approve the July 10, 2019 City Council Meeting Minutes as Amended. All in favor. Motion carried. VII. CONSENT AGENDA Page 2 of 7 City of Centerville Council Meeting Minutes July 24, 2019 1. City of Centerville Claims through July 24, 2019 (Check #32790-32841) & E- Check #1377E-1382E) & Voided Check #32799 & (Check #32842-32846) & E1383-1387E 2. Centennial Lakes Police Claims through July 18, 2019 (Check #12727-12748) & Payroll Check #12724-12726 3. Centennial Fire District Claims through July 19, 2019 (Checks #8581-8589) 4. Res. #19-0XX – Proclamation for Constitution Week 5. Res. #19-0XX – Domestic Violence Awareness Month 6. Encroachment Agreement - Fence Mayor Paar provided an opportunity for Council to add or remove any item(s) to the consent agenda. Motion by Council Member Love, seconded by Council Member Paar to Approve the Consent Agenda as Submitted. Council Member Love felt that that the Proclamation for Constitution Week and Domestic Violence Awareness Month were very important and he desired to draw attention to them and their importance. All in favor. Motion carried. IV. OLD BUSINESS 1. Block 7 – TIF District City Administrator Statz stated that the developer of choice was Trident Development for the construction of a 53 unit apartment complex on the City owned property in the downtown area. Previously, the City discussed the organization of a different type TIF District and found that it did not fit the planned uses of the development. He stated that Trident, Staff and Northland Securities all concur that a new district should be designed that better fit the developer and City’s goals. He stated that with the new district, there would need to be 20% (11 units) for the life cycle of the TIF district being affordable housing. He also stated that these tenants would be income qualified at or below 50% of the area-wide median income. He reported that this year that income level is $50,000. Administrator Statz stated that the average market rate is $1,400-$1,500/month rent with the affordable component being approximately $900/month rent. Administrator Statz stated that the developer is requesting $1,300,000 in reimbursement (land/extraordinary site improvement costs) on a pay-go basis. Finance Director DeJong stated that this TIF District is very safe for the City as it only pays what it collects. Finance Director DeJong stated that the City offered 95% of the increment which shortened the life of the TIF District from 23 years to 20 years. He also stated that the City would retain 5% of the increment for administrative costs associated with the District. Administrator Statz stated that once the district’s life runs its course, only three (3) affordable units are required and associated with the property acquisition from Anoka County as CDBG funds were utilized in 2007 and 2011 for some of the parcels. Page 3 of 7 City of Centerville Council Meeting Minutes July 24, 2019 Lengthy discussion was had by the Council regarding the benefit to the community, spurring development in the downtown area, public safety implications, budgetary implications, fluctuation of “affordable” “market based” rent on a yearly basis, etc. Mr. Patrick Brama, Trident Development was available for comment and questions. Council Member Koski questioned the typical annual rate of return on investment and Mr. Brama stated 6- 7% on the low end and 10-12% on the high end which was agreeable by the developer, banker and owner. He stated that without TIF the project would not be financially worthy. Additional discussion ensued regarding alternative options for the development, the City paying expenses associated with sewer, water, storm sewer and additional expenditures without the City receiving tax dollars for 20 years, potential for setting a precedence and others requesting the same type of financing. Mr. Brama, Trident Development stated that they had explored a handful of options to make the project viable but determined that TIF was the only tool. Administrator Statz stated that the next step would be to adopt the resolution and order a public hearing. He stated that the process for establishing the district follows the public hearing. However, only concept plans have been submitted to the Planning & Zoning Commission and there will be additional discussion and approvals associated with the look and character of the building. Finance Director DeJong stated that the district would not be established if the project did not proceed. Motion by Council Member Lakso, seconded by Council Member Love to Adopt Res. #19- 021 – Calling for a Public Hearing on the Proposed Modification of Development Dist. #1 and the Establishment of Tax Increment Financing District #1-8 within the Development District and the Adoption of the Modified Development Program and the Adoption of the Tax Increment Financing Plan Relating to Thereto as Presented. Council Member Montain Opposed. Motion Carried. IX. NEW BUSINESS 1. None. X. COUNCIL/ADMINISTRATOR ANNOUNCEMENTS 1. Administrator’s Report Administrator Statz stated that there was no written report for the week. He also stated that grading for Old Mill Estates was nearing completion, that plat would be recorded shortly and all appropriate documents (Letter of Credit, Escrows and Insurance) were on file. He reported that the previous builder for Bay View Villas had pulled out and Staff is waiting to hear of another builders as they are aware of discussions taking place. Page 4 of 7 City of Centerville Council Meeting Minutes July 24, 2019 2. Council Reports a. Lakso Council Member Lakso thanked Administrator Statz for the new format contained in the Agenda as per her request. i. Parks and Recreation Committee – Council Member Lakso reported that she would report following the August meeting. ii. Economic Development Authority – Council Member Lakso reported that she would report following the August meeting. Council Member Lakso thanked those who volunteered for Fete des Lacs. b. Love Council Member Love also thanked the volunteers and apologized for the weather as some activities had to be cancelled. He stated that every year the events are growing and becoming better. i. Police Governing Board – Council Member Love stated that the Governing Board met on July 15, 2019 where lengthy discussion was held regarding the Centennial Lakes Police Departments audit. He reported that there were no findings associated with the audit and are reviewing the budget. ii. Economic Development Authority – Council Member Love stated that the EDA would be meeting on August 21, 2019. c. Koski Council Member Koski stated that Fete des Lacs volunteers and staff prepared for the Festival for months and thanked all who gave their time. i. Planning & Zoning Commission – Council Member Koski stated that the August 6, 2019 meeting was rescheduled to August 13, 2019 and that upon its completion he would report. ii. Fire Steering Committee – Council Member Koski stated that the Committee would be meeting the following evening and that he would report upon its completion but discussions would be taking place regarding the budget. d. Montain Council Member Montain stated that it was disappointing that the parade was cancelled due to the weather and thanked all that were involved in the planning and volunteering for events associated with the Festival. Page 5 of 7 City of Centerville Council Meeting Minutes July 24, 2019 i. North Metro Telecommunications Commission – Council Member Montain stated that the meeting was cancelled ii. Anoka Fire Board – Council Member Montain reported that the meeting was scheduled for the following evening and that upon its completion he would provide a report. e. Paar Mayor Paar also stated that it was disappointing that events were cancelled associated with Fete des Lacs, thanked all who were involved from volunteers, sponsors and participants. i. Police Governing Board – Mayor Paar stated that Council Member Love reported that the Governing Board receiving the audit, working on the budget for the upcoming year. He stated that staffing levels would have an effect on the budget. ii. Pioneer Press and Star Tribune – Mayor Paar stated that both papers recently ran articles about Washington County and Anoka County marketing efforts associated with attracting data centers, tech employers through a technology corridor (electric utilities, multiple high-speed internet service providers), the two (2) counties and each city along Interstate 35E. He stated that the area covers Centerville, Columbus, Forest Lake, Hugo and Lino Lakes. He also stated that an event would be held on August 1, 2019 at Running Aces where Congressman Emmer, Jacquel Hajder, Anoka County and Bruce Sayler, Connexus Energy, Chris Eng, Washington County where there would be a launching event. Mayor Paar requested that the event be posted. Mayor Paar stated that he had been contacted by an individual regarding development and that he and Administrator Statz would be meeting with him in the coming week. Motion by Council Member Montain, seconded by Council Member Koski to Recess the Regular City Council Meeting at 8:00 p.m. All in favor. Motion carried. XI. RECESS REGULAR CITY COUNCIL MEETING This portion of the meeting is closed to develop or consider the potential asking price, and consider offers or counteroffers for the sale of real property identified by property identification numbers 23-31-22-22-0015 and 23-31-22-22-0016 on Centerville Road. The closure is pursuant to Minnesota State Statute Section 13D.05, subdivision 3(b) **Read Into Record** CLOSED EXECUTIVE SESSION I. CALL TO ORDER Page 6 of 7 City of Centerville Council Meeting Minutes July 24, 2019 Mayor Paar called the Closed Session to order at 8:05 p.m. II. ITEMS OF DISCUSSION III. ADJOURNMENT (CLOSED EXECUTIVE SESSION AND RECONVENE REGULAR MEETING) Motion by Council Member Montain, seconded by Council Member Koski to Adjourn the Closed Executive Session and Reconvene the Regular City Council Meeting of July 27, 2019 at 9:38 p.m. All in favor. Motion carried. ADJOURNMENT Motion by Council Member Montain, seconded by Council Member Koski to Adjourn the Council Meeting of July 27, 2019 at 9:39 p.m. All in favor. Motion carried. Respectfully submitted by City Clerk, Teresa Bender. Page 7 of 7