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HomeMy WebLinkAbout2003-04-29 CC MIN CITY OF STILLWATER CITY COUNCIL MEETING NO. 03-09 April 29, 2003 SPECIAL MEETING 4:30 P.M. Mayor Kimble called the meeting to order at 4:30 p.m. Present: Councilmembers Junker, Kriesel, Milbrandt, Rheinberger, and Mayor Kimble Absent: None Also present: City Administrator Hansen City Attorney Magnuson Community Development Director Russell Police Chief Dauffenbach Fire Chief Kallestad Public Works Director Eckles Director of Administration Knauss City Clerk Ward PUBLIC HEARING The proposed adoption of a modification to the Development Prooram for Development District No.1. the establishment of Tax Increment Financino District No. 10 (a Redevelopment District) and the establishment of a Hazardous Substance Subdistrict within Tax Increment Financino District No.1 O. and the proposed adoption of a Tax Increment Financino Plan therefore. the proposed reduction in size of Tax Increment Financina District No.1 and the proposed modification to the Tax Increment Financino Plan therefor. the proposed termination of Tax Increment Financina District No.7 within Development District No.1. pursuant to and in accordance with Minnesota Statutes Sections. 469.124 to 469.134 and 469.174 to 469.179. City Attorney Magnuson explained that the hearing is being held to obtain information from the public. He recommended that the actual resolution approving the district be adopted on May 20. There will be some additional inspections of property included in the district. Mayor Kimble opened the Public Hearing. Richard Kilty, 118 West Oak Street, asked why the Warden's House, the Dock Cafe and the Andiamo property are included in the district. Mr. Magnuson stated that each district within the scattered site has to be contiguous. Mr. Kilty also asked why the barge terminal property is included. Mr. Magnuson stated that the increment from the district could be used to improve the property with walkways, pedestrian pathways, lighting, curb and gutters, etc. Mr. Kilty asked when Tax Increment District 1 and 7 expire. Mr. City Council Meeting - 03-10 April 29, 2003 Magnuson stated that District 1 expires on 2011, and District 7 will be decertified according to the five-year rule. Mr. Kilty also stated, that according to today's Pioneer Press, the City will obtain $2 million from the Territorial Prison site. He asked what the City intends to do with that money. Mayor Kimble stated that that is a separate issue not related to the public hearing and that council had not addressed that issue as yet. Vern Stefan, a landowner in TIF District 1, asked why the City is moving parcels from TIF District 1 to TIF District 10 and what parcels are being moved from 1 to 10. Mr. Magnuson answered that the 501 N. Main (Lofts of Stillwater), the parking lot north of the Lumber Baron's Hotel, city parking lots around the Hotel and some property by the Dock Cafe. Mr. Stefan asked what sort of increment would be produced by those parcels if they remained in District 1. Mr. Magnuson replied that it is likely only the Lofts of Stillwater would produce any increment. Mr. Stefan asked about extending the life of TIF District 1. Mr. Magnuson pointed out that a request for extension of the TIF District could not be presented to the Legislature until closer to the time of expiration. Mr. Stefan questioned why the new parcels could not be put into District 1 rather than create a new district. Mr. Magnuson stated that the effort would be the same as to create a new district. Since District 1 will only last until 2011 it seemed more logical to create a district that will last for 25 years. There being no additional comments Mayor Kimble closed the hearing. CONSENT AGENDA Motion by Council member Rheinberger, seconded by Councilmember Milbrandt to approve the consent agenda. All in favor. Resolution 2003-92, directing payment of bills Approval of request to close certain streets - Hope House of St. Croix Valley OTHER BUSINESS Approval of Development Aareement with Terra SprinQs. LLC Community Development Director Russell reported that an agreement has been reached between the City and developers of the Territorial Prison Site. The purchase price of the property is $2 million. The developer will repair the wall; will deal with the on-site and off-site drainage; will provide an interpretive trail around the site; will deal with soil corrections and will purchase the right-of-way along the front of the site. Motion by Council member Rheinberger, seconded by Council member Kriesel to adopt Resolution 2003- 93, approving the development agreement with Terra Springs, LLC, contingent upon a successful environmental review, scrivener changes as a result of review from various lenders and bond underwriters and after the TIF District is formally adopted. All in favor. Page 2 of 4 City Council Meeting - 03-10 April 29, 2003 Ayes - Council member Junker, Kriesel, Milbrandt, Rheinberger and Mayor Kimble Nays - None Authorization to purchase MN/DOT riQht-of-wav for 501 North Main and Territorial Prison. Community Developer Russell explained the city's proposal to purchase the right-of-way from the state and then sell it to the developers of the Lofts of Stillwater for the same purchase price. Motion by Council member Rheinberger, seconded by Council member Milbrandt to adopt Resolution 2003-94, approving purchase of right-of-way for 501 North Main. All in favor. Ayes - Councilmember Junker, Kriesel, Milbrandt, Rheinberger and Mayor Kimble Nays - None Request for contribution from Art Reach Alliance for Art Crawl. City Administrator Hansen reviewed the request from Art Reach Alliance for a city contribution of $2,000. Council discussed pending budget cuts. Motion by Council member Milbrandt, seconded by Council member Rheinberger to deny the request from Art Reach Alliance for a contribution in the amount of $2,000 for the Stillwater Art Crawl, and approve a contribution of $500. All in favor. Possible approval of Territorial Prison insurance settlement City Administrator Hansen reported that the insurance company has offered $2.7 million to cover any and all costs except minor liability claims in regard to the Territorial Prison fire. Motion by Council member Rheinberger, seconded by Council member Milbrandt to accept the Territorial Prison insurance settlement. All in favor. Possible concept approval of aQreement for purchase of railroad riqht-of-wav. Community Development Director Russell explained that this is the last remaining piece of vacant railroad land downtown. He stated that the City has negotiated a purchase price of $950,000 from the original price of $1.3M. Motion by Council member Rheinberger, seconded by Council member Kriesel to adopt Resolution 2003-95, approving the purchase agreement with Burlington Northern and Santa Fe Railroad to purchase railroad right-of-way downtown. All in favor. Ayes - Councilmember Junker, Kriesel, Milbrandt, Rheinberger and Mayor Kimble Nays - None Page 3 of 4 City Council Meeting - 03-10 April 29, 2003 Discussion on Fees for Service Community Development Director Russell discussed the proposed increase in fees for various planning services. Motion by Council member Milbrandt, seconded by Councilmember Rheinberger to approve the fees for service for the Planning Department as recommended with the exception of Design Review which will be adjusted to $25 and residential variance to $100. All in favor. Motion by Councilmember Rheinberger, seconded by Councilmember Milbrandt to adopt Resolution 2003-96, approving the fees for service for 2003 as recommended and includes the revision to the planning fees as previously moved. Ayes - Councilmember Junker, Kriesel, Milbrandt, Rheinberger and Mayor Kimble Nays - None ADJOURNMENT Motion by Council member Rheinberger, seconded by Council member Junker to adjourn at 5:30 p.m. All in favor. d~ift ATTEST: /1to~ J t0~t:L 'Diane F. Ward, City Clerk Resolution 2003-92, directing payment of bills Resolution 2003-93, approving the development agreement with Terra Springs, LLC Resolution 2003-94, approving purchase of right-of-way for 501 North Main Resolution 2003-95, approving the purchase agreement with Burlington Northern and Santa Fe Railroad Resolution 2003-96, approving the fees for service for 2003 Page 4 of 4