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HomeMy WebLinkAbout2019-11-13 CC Minutes - Approved CITY OF CENTERVILLE CITY COUNCIL WORK SESSION & COUNCIL MEETING November 13, 2019 5:30 p.m./6:30 p.m. Pursuant to due call and notice thereof, the City of Centerville held a scheduled City Council Work Session & Council Meeting on November 13, 2019 at City Hall, 1880 Main Street. COUNCIL WORKSESSION I. CALL TO ORDER Mayor Paar called the meeting to order at 5:30 p.m. ROLL CALL PRESENT: Mayor Jeff Paar Council Member Russ Koski Council Member Michelle Lasso Council Member D. Love Council Member Matt Montain ABSENT: None. STAFF: City Administrator Mark Statz Finance Director Bruce DeJong II. ITEMS OF DISCUSSION a. Stormwater Utility Fund b. Block 7 Project c. Final 2020 Budget Review III. ADJOURNMENT Motion by Council Member Montain, seconded by Council Member Koski to Recess the City Council Work Session at 6:23 p.m. All in favor. Motion carried. COUNCIL MEETING I. CALL TO ORDER Mayor Paar called the meeting to order at 6:30 p.m. ROLL CALL PRESENT: Mayor Jeff Paar Council Member Russ Koski Council Member Michelle Lakso City of Centerville Council Meeting Minutes November 13, 2019 Council Member D. Love Council Member Matt Montain ABSENT: None. STAFF: City Administrator Mark Statz City Attorney Kurt Glaser Finance Director Bruce DeJong II. PLEDGE OF ALLEGIANCE III. APPROVAL OF AGENDA Mayor Paar provided an opportunity for others to add or delete any items. Mayor Paar added Item #11, P & Z Recommendation for Variance Granting – 1687 Sorel Street under Consent Agenda. He stated that several items were placed before Council for consideration: September and October Financial Statements and an updated Resolution #19-0XX – Adopting thth Delinquent Municipal Utilities, Garbage and Nuisance/City Abatement Services, Etc. (4-6 strd Billing Cycles of 2018 & 1 – 3 Billing Cycles of 2019. Motion by Council Member Love, seconded by Council Member Montain to Approve the Agenda with the Above Stated Modifications. All in favor. Motion carried. Mayor Paar suggested that Council consider the Consent Agenda at this time due to the attendance of Ms. Julie Lindsay. See Consent Agenda, Item #VII below. IV. APPOINTMENTS/PRESENTATIONS 1. None. V. PUBLIC HEARINGS 1. Delinquent Municipal Utilities, Garbage and Nuisance/City Abatement ththstrd Services, Etc. (4-6 Billing Cycles of 2018 & 1-3 Billing Cycles of 2019. Such Amounts will be Assessed to Parcel Identification Numbers Through County Property Tax Statements Payable in 2020 Mayor Paar stated that Council received an updated resolution for consideration and explained that the resolution does not add additional accounts to be certified but eliminates those that have paid to date. Mayor Paar opened the public hearing at 6:36 p.m. Page 2 of 11 City of Centerville Council Meeting Minutes November 13, 2019 Mayor Paar addressed the audience and provided an opportunity for those present to speak. No one from the audience desired to speak. Motion by Council Member Koski, seconded by Council Member Lakso to Close the Public Hearing at 6:37 p.m. All in favor. Motion carried. Council Member Koski asked how individuals were notified of their outstanding balances and Administrator Statz stated that they were direct mailed a letter and a public hearing notice was published in the newspaper of record, The Quad Community Press as required by law. He stated that the public hearing was an opportunity for those that were delinquent or had City Abatements to appeal. VI. APPROVAL OF THE MINUTES 1. October 9, 2019 City Council Meeting Minutes Motion by Council Member Love, seconded by Council Member Montain to approved the October 9, 2019 City Council Meeting Minutes as presented. All in favor. Motion carried. 2. October 23, 2019 City Council Work Session & Meeting Minutes Council Member Love requested that a typographical error be corrected on page 44 of the packet, second paragraph, the last word of the sentence “gate” rather than “grate”. Motion by Council Member Montain, seconded by Council Member Koski to Approve the October 23, 2019 City Council Work Session & Meeting Minutes with the Above Stated Correction. All in favor. Motion carried. VII. CONSENT AGENDA – Discussed near the beginning of the meeting 1. City of Centerville Claims through November 13, 2019 (Check #33071- 33116), E-Check #1424E-1428E) & Voided Check #33049 2. Centennial Lakes Police Claims through November 6-8, 2019 (Check #12887- 12909) & .S. Bank 3. Centennial Fire District Claims through October 22, 2019 (Check #8652- 8667), U.S. Bank & Payroll (Check #8647-8651) 4. Res. #19-0XX – Adopting Delinquent Municipal Utilities, Garbage and thstrd Nuisance/City Abatement Services, Etc. (4-6 Billing Cycles of 2018 & 1-3 Billing Cycles of 2019. Such Amounts will be Assessed to Parcel Identification Numbers Through County Property Tax Statements Payable in 2020 5. Anoka County Community Development Block Grant – Authorize Execution of Sub-Recipient Agreement for Downtown Municipal Water Improvements a. Res. #19-0XX – Authorizing Execution of Sub-Recipient Agreement for Downtown Municipal Water Improvements 6. 2020 Agreement for Residential Recycling Program 7. Embedded Systems Siren Maintenance Contract 8. Liquor & Tobacco License Renewals Page 3 of 11 City of Centerville Council Meeting Minutes November 13, 2019 a. JJ Barrel DBA Liquor Barrel of Centerville (Tobacco & Off Sale) b. S & B Center Corp. dba Kelly’s Korner ( On Sale, Off Sale & Sunday) c. NS2R Companies, LLC dba Platinum Liquor (Tobacco & Off Sale) d. JV Summit Corporation dba Southern Rail (On Sale & Sunday) e. Ameer’s Tobacco Shop (Tobacco) f. SCAT Properties dba WiseGuys Pizza (On Sale & Sunday) * Subject to Background Check * g. Korner Express (Tobacco) * Subject to Background Check * 9. Encroachment Agreement – Fence, 7028 Eagle Trail 10. Res. #19-0XX – Establishing Precinct and Polling Location for 2020 Election Year 11. P & Z Recommendation for Variance Granting – 1687 Sorel Street Mayor Paar provided an opportunity for Council to add or remove any item(s) to the consent agenda. Administrator Statz stated that the Planning & Zoning Commission held a public hearing, obtained public input and recommended approval of a variance request for Ms. Julie Lindsay, owner of 1687 Sorel Street, to construct a fence in excess of the 3’ code requirement (not to exceed 4’) and in the front yard with it not to be a decorative fence as per City Code but a chain link fence. He stated that Ms. Lindsay desired for the fence to follow the pedestrian trail which runs along her westerly property line. Motion by Council Member Love, seconded by Council Member Koski to Approve the Consent Agenda as Presented. All in favor. Motion carried. VIII. OLD BUSINESS 1. Ordinance #XX, - Second Series – Fee Schedule Changes (2nd Reading) Administrator Statz stated that previously, Council approved adding the fire hose connection fee and had considered additional language shown in the draft amendment regarding the issue of WAC fee multiplication by SAC units. Mayor Paar requested that Administrator Statz provide the information previously requested for Commercial accounts pertaining to SAC units and examples of how the new calculation would affect those accounts as currently billed and then with several options such a 2-5 units being utilized for multipliers along with their full amounts of SAC units for comparison. Motion by Council Member Love, seconded by Council Member Koski to Table Ordinance #XX, - Second Series – Fee Schedule Changes (2nd Reading) Until Such Time as Additional Information Can Be Provided. All in favor. Motion carried. City Attorney Glaser suggested that Item #4 of the Consent Agenda be reconsidered and placed under New Business, Item #1, since they had inadvertently approved the resolution before the public hearing. Page 4 of 11 City of Centerville Council Meeting Minutes November 13, 2019 Council concurred. IX. NEW BUSINESS 1. Res. #19-0XX – Adopting Delinquent Municipal Utilities, Garbage and thstrd Nuisance/City Abatement Services, Etc. (4-6 Billing Cycles of 2018 & 1-3 Billing Cycles of 2019. Such Amounts will be Assessed to Parcel Identification Numbers Through County Property Tax Statements Payable in 2020 Mayor Paar explained that this item was being reconsidered so as to be adopted following the public hearing. He then provided an opportunity to attendees and Council for additional discussion. No one desired to speak regarding the item. Motion by Council Member Lakso, seconded by Council Member Love to Adopt Res. #19- 030 – Adopting delinquent Municipal Utilities, Garbage and Nuisance/City Abatement ththstrd Services, Etc. (4-6 Billing Cycles of 2018 & 1-3 Billing Cycles of 2019. Such Amounts will be Assessed to Parcel Identification Numbers Through County Property Tax Statements Payable in 2020 as Presented. All in favor. Motion carried. VIII. OLD BUSINESS (Cont’d) 2. Ordinance #101, - Second Series – Downtown Zoning Changes (Revised) a. Summary of Ordinance Administrator Statz stated that the Planning & Zoning Commission previously held a public hearing and Council has reviewed the presented ordinance twice and approved it. Upon further review and prior to publication, staff discovered several errors. He stated that those errors have been corrected and City Attorney Glaser felt that another public hearing was not needed. He stated that the intended changes were to allow accessory structures in the downtown district, include height requirements, matching materials as the primary structure and align with the Comprehensive Plan, Downtown Master Plan and City Code. Motion by Council Member Lakso, seconded by Council Member Love to Adopt Ord. #101, Second Series & its Summary as Presented. All in favor. Motion carried. rd 3. Pheasant Marsh 3 Addition Letter of Credit Release No action was taken on this item at this time and it was discussed in closed session later in the meeting. 4. Bay View Villas – Request for Extension to Time of Performance Administrator Statz stated that the City is in receipt of a request from Mr. Don Skelly, Realtor/Developer who requested that an extension be given for the completion of street lighting, installation of stop sign(s), mailboxes, trail connections (concrete) and storm sewer connection(s) Page 5 of 11 City of Centerville Council Meeting Minutes November 13, 2019 due to weather delays. He stated that both he and City Attorney Glaser were comfortable with granting the extension until June, 2020. Motion by Council Member Montain, seconded by Council Member Koski to Grant the Extension of the Installation of the Above Stated Items Until June, 2020. All in favor. Motion carried. 5. Authorize TIF Developer’s Agreement – Block 7 – Trident Development Administrator Statz stated that there may have been clarification needed for the wording of the item placed on the agenda. He stated that he is requesting that the Council consider authorizing Staff, the consultant (Northland Securities) and the TIF Attorney (Mary Ipple) to draft a TIF Developer Agreement at a cost not to exceed $7,500. He stated that this would continue the processes needed to further the proposed 53 unit apartment building if that was the desire of Council as he felt that the expenditures were significant if Council did not desire to further the project. He stated that Mr. Patrick Brama, Trident Development was in attendance to answer questions this evening. Mayor Paar asked Attorney Glaser for clarification. Attorney Glaser stated that if Council desire to go forward with TIF this item would need to be discussed and if Council was against offering TIF this would not make sense to authorize. However, at this time it is not authorizing TIF. Council Member Lakso asked whether these costs could be placed against or negotiated with the Developer or whether they were reimbursable. City Administrator Statz stated that the costs could be negotiated. Council Member Love inquired about the differences in what has been presented by Northland Securities to date and this agreement. City Administrator Statz stated that this would be a draft agreement. Previously discussed has been Northland’s analysis of the developer’s performa and the details of the proposed TIF deal. Council Member Montain felt that consensus should be reached prior to drafting an agreement. Administrator Statz stated that the agreement would provide for details and if Council choses after the agreement to scrap the project that can be done. He stated that this offers Council an opportunity to explore the options available. Mayor Paar stated that it does not mean a 20 year TIF project is approved it is obtaining additional facts and allowing Council to make a much wiser decision. Motion by Council Member Love, seconded by Council Member Lakso to Authorize the Expenditure of Up to $7,500 to Draft a TIF Developer’s Agreement. Council Members Koski and Montain opposed. Motion carried. Mayor Paar stated that Council will determine whether the project should be funded with TIF, the years for the TIF, dollar amount of the TIF and concessions if determined at a later date. Discussion ensued regarding the previously discussed scenario of 20 years, 95% paid by developer, 5% retained by City with the present value of 1.35 million, pay as go and conservative assumptions that taxes would increase and pay off would be prior to the 20 years. Several Council Members desired to negotiate optional scenarios going forward. Page 6 of 11 City of Centerville Council Meeting Minutes November 13, 2019 Council Member Koski felt that the market should dictate development and developers should not require assistance if the project and market are strong. He had concerns regarding abutting property owners’ values, that numerous other developments within the community have supported themselves, the use of TIF for commercial construction rather than residential construction and the added tax burden for residents for such items as public safety services, general services, etc. as taxes will not be collected but the 53 units will be utilizing those services. Council Member Montain stated that a shorter term would be easier to consider along with additional concessions to decrease the TIF amount. Mayor Paar concurred and stated that additional concessions should also be considered such as the possibility of decreasing the purchase price of the land, etc. Mr. Patrick Brama, Trident Development, introduced himself to Council and stated that he would answer questions if they had any. Council Member Koski stated that three proposals were received by Council in April with the entire cost of the project being 9.7-9.8 million. He questioned whether costs would change of the next year and by how much and would that increase be a part of the negotiations. Mr. Brama stated that costs would increase but those are risks to the developer. He also stated that when first presented several designs were discussed and Council desired a more French architectural aspect, commercial space and meeting the communities goals. He reassured Council that Trident Development is not taking the approach of the increase to construct the building with a negotiated increase for TIF funding. Mr. Brama stated that the soils are not suitable for the proposed foundation and they would be installing geopiers which will also increase the costs. Finance Director DeJong stated that the taxable value is based off of projections of cash flowing through the business, and factors of affordable units will effect that amount. Council Member Love asked whether Trident Development had other developments utilizing the same financing. Ms. Brama stated either Trident is in the middle of construction or completed over 30 projects within the last 10 years within the communities of Brooklyn Park, Lake Johanna, Carver County, North St. Paul and Maple Grave. He stated that half of these projects involved TIF. Administrator Statz stated that if taxes exceed the projections than the period of time could be shorter than the 20 years and if the project does not perform to the projections the City does not pay beyond 20 years. Mr. Brama stated that Trident Development is open to negotiations. Council thanked Mr. Brama for his time. Mayor Paar opened the floor to audience participation and comment. Ms. Kati DuFault, 7045 Centerville Road, stated that she lives directly across from the proposed development and believes that she has a huge interest at stake. She stated that she has emailed Council Members regarding her concerns and questioned whether a market study has been completed for this project and whether it is needed in Centerville. She stated that the Council is basing their decision on plans that are from 10 years ago. Mayor Paar stated that he believed that Page 7 of 11 City of Centerville Council Meeting Minutes November 13, 2019 Ms. DuFault is taking information out of context and that developing this property into high- density housing has been in the City’s Comprehensive Plan for 20 years and several firms have been interesting in developing it. Ms. DuFault stated that Council is basing their decision on previous proposals and she would desire that the Council consider the community as a whole and the benefit rather than just developing this property. Mayor Paar stated that the discussion this evening is whether the City should expend funds to continue to entertain the proposal and not vote on TIF, or the proposal. Ms. Melanie Nicks, 7029 Centerville Road, stated that she is against providing the developer with TIF funding, does not feel that the City of Centerville needs a 53 unit apartment building and would rather see a townhome development without utilizing TIF. She stated that she is concerned about green space and the rural feel of Centerville. She also stated that she did not believe that the expenditure of $7,500 was a necessary expense/good use of the City’s funding. Mayor Paar questioned whether anyone else desired to speak on the issue. No others from the audience stated their desire to speak. Council Member Love stated that the developer has completed a market study and shown that this type of housing is needed in Centerville and it they did not believe that it was needed then they would not developer here. He stated that for many years the location has been included in the City’s Comprehensive Plan for high density and Council understands TIF but is concerned about the length of time the developer is requesting. Council Member Koski stated that he appreciated the comments from the public and to some extent agree with what they are saying. He stated that he agrees that times have changed and feels that the market will dictate development on the site. He did however stated that he has not heard a large amount of opposition to the proposed development and felt that the public should be involved in the decision making process. Mayor Paar stated that the City is not attempting “to drop the land like a hot potato”, that he has been on Council for 17 years and the property has been vacant, the downtown redevelopment project was in full swing with the Beard Group and then the economy went downhill. He stated that the economy is on the uptick and Trident Development was one of three developers that were originally looking at developing the property. He stated that no one knows what tomorrow will bring but the City knows that with this development additional development within the downtown area will be spurred. He stated that he is having difficulty with the length of the proposed TIF and the dollar amount. He also stated that he feels that incentives/concessions may be given in alternate areas. Mr. Brama stated that the City was particular in the look of the building be of French heritage. Mayor Paar stated that two larger business came to Centerville due to the Shovel Ready projects and that the same will hold true for residential development. He again reminded the audience that this evening was to expend funds to determine if the process should continue not to approve TIF or conditions of the TIF. Mayor Paar also thanked Ms. DuFault and Ms. Nicks for their comments and stated that it is difficult to speak in front of a crowd. He stated that he appreciates receiving emails regarding concerns and then stated that City Administrator Statz would be the best candidate to forward Page 8 of 11 City of Centerville Council Meeting Minutes November 13, 2019 concerns to as he can forward them on to Council without violating the open meeting law. He also suggested that Finance Director DeJong is also a wealth of knowledge regarding TIF. X. COUNCIL/ADMINISTRATOR ANNOUNCEMENTS 1. Administrator’s Report Administrator Statz stated that his report was contained in Council’s packet and he would be happy to discuss any items Council wished additional information on. Council Reports a. Lakso – i. Parks and Recreation Committee – Council Member Lakso reported that there remains a vacancy on the Committee. At the last meeting they set skate nights for January and February and are attempting to schedule alternative things versus the horse drawn hayrides. One idea that they liked is having the ability to provide ice skate sharping on site. ii. Economic Development Authority iii. Fire Steering Committee – Council Member Lakso reported met on th the 10 of October which was the last meeting of the year. She stated that they approved a $500 increase in the firefighters’ pension per year. She stated that the desire to increasing this rate is to increase retention and gain recruitment. She also stated that the wage range will remain competitive. She stated that he would like Council to consider who would be representing the City on the Fire Steering Committee next year. She stated that it was good to be back. b. Love – Council Member Love stated that on a different note that the League of Minnesota Cities Insurance Workers Compensation rates would be increasing for 2020 due to Post Traumatic Stress Disorder with the Police and Fire sides of things, it was an item that he desired for the public to be aware of. i. Police Governing Board – Council Member Love reported that the meeting would be taking place the following week. ii. Economic Development Authority – Council Member Love reported that the meeting would be taking place the following week. c. Koski i. Planning & Zoning Commission – Council Member Koski stated that there was a public hearing held regarding a request for variance for a fence to be placed in the front yard of a home in the downtown area whose side yard abuts a pedestrian trail. ii. Fire Steering Committee – Page 9 of 11 City of Centerville Council Meeting Minutes November 13, 2019 Council Member Koski stated that Veteran’s Day was coming up and he desired to take a moment to thank those that sacrificed their lives or were serving in the many branches of service. d. Montain – Council Member Montain stated that the fire fighters have support groups for PTSD and the County is extremely aware of its effects on individuals and their families. i. North Metro Telecommunications Commission – Council Member Montain stated that this meeting would occur the following week. ii. Anoka Fire Protection Board – Council Member Montain stated that a quorum was lacking at the meeting but they discussed having a special meeting in two weeks. He stated that they would be discussing a by- laws amendment for the budget adoption being January rather than in April. e. Paar – i. Police Governing Board – Mayor Paar reported that the meeting would th be held on the 18 of November. ii. Other Mayoral Reports – Mayor Paar stated that there was a Local Government Officials meeting on the th 30 of the month where discussion ensued regarding the importance of completing the census. He stated that it will assist the government in determining Federal funding and governmental representation. He stated that individuals can file on line and more information will be available in April. Mayor Paar also reported that Anoka County has been experiencing problems with the warning sirens and work will be completed in the near future for upgrades. Mayor Paar stated that he attending the STEM event at Centennial Elementary school where such items a drones, magnets, fossils and that the event was a huge success. He stated that the students did a great job and thanked the Cub Scouts 432 for their work. Mayor Paar stated that there would be one Council meeting in November and one Council meeting in December. He noted that the Santa Parade would be on December 9, 2019 commencing at 5:30 p.m. Santa would be accepting toys, food and monetary donations. Mayor Paar reminded the audience that November 11, 2019 was Veterans Day and City Hall would be closed. He also that all members that have served and are serving our Country. Page 10 of 11 City of Centerville Council Meeting Minutes November 13, 2019 He wished the audience a Happy Thanksgiving and stated that individuals should assist those that are less fortunate at this time of year. He also stated thth that City Hall would be closed on the 28 and 29 of the month in observance of the Holiday. XI. CLOSED EXECUTIVE SESSION (This portion of the meeting is closed to discuss matters protected by the attorney-client privilege related to the Development Agreement for Pheasant Marsh and/or Ground Development. This closure is pursuant to Minnesota Statute Section 13D.05, subdivision 3 (b).”) Mayor read the above statement at 8:01 p.m. stating that the Council would be taking a five minute break and recessing the regularly scheduled Council meeting. Mayor Paar called the Closed Executive Session to order at 8:06 p.m. XII. ADJOURN CLOSED EXECUTIVE SESSION & RECESS TO REGULARLY SCHEDULED MEETING Motion by Council Member Montain, seconded by Council Member Koski to Adjourn the Closed Executive Session & Recess to Regularly Scheduled Meeting at 8:30 p.m. All in favor. Motion carried. XIII. OLD BUSINESS rd 3. Pheasant Marsh 3 Addition Letter of Credit Release Motion by Council Member Montain, seconded by Council Member Love to Deny the Release of Ground Development’s Letter of Credit Until Such Time as the Developer Meets the Obligations of the Development Agreement to the Satisfaction of the City Administrator. All in favor. Motion carried. XIV. ADJOURNMENT Motion by Council Member Montain, seconded by Council Member Koski to Adjourn the November 13, 2019 City Council Meeting at 8:37 p.m. All in favor. Motion carried. Respectfully submitted by City Clerk, Teresa Bender. Page 11 of 11