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HomeMy WebLinkAbout1985-11-19 CC MIN I . REGULAR MeETING AGENDA STILLWATER CITV COUNCIL November 19, 1985 6:30 P.M. CALL TO ORDER INVOCATION ROLL CALL APPROVAL OF MINUTES I I November 5, 1985 (Regular & Recessed Meetings) STAFF REPORTS . 1. City Coordinator 4. Public Works 2. Finance 5. Building Official 3. Pub 11 c Safety 6. Parks & Recreation 10. City Clerk INDIVIDUALS & DELEGATIONS PUBLIC HEARINGS 7. Consulting Engineer 8. Fire Chief 9. City Attorney 1. Modification of a Municipal Development Dist.; and Tax Increment Financing District. Notice of the Public Hearing was published in the Stillwater Gazette on November 8, 1985. 2. Housing Plan & Proposed Multifamily Housing Rev. Bond Program - GDS & Associates - 36 units. Notice of the Public Hearing was published in the Stillwater Gazette on November 1, 1985. 3. Housing Plan & Proposed Multifamily Housing Rev. Bond Program - O:-leans Homes Number One Limited Partnerhsip - 60 units. Notice of the Public Hearing was published in the Stillwater Gazette on November 1, 1985. 4. Housing Plan & Proposed Single Family Housing Rev. Bond Program. Notice of the Public Hearing was published in the Stillwater Gazette on October 18, 1985. UNFINISHED BUSINESS ~ 1. Continuation of discussion on Planning Commission. . . . 2. Resolution No. 7531 Accepting Work & Ordering Final Payment for L.I.22ti, Wildwood Pines Third Addition. NEW BUSINESS 1. Directing Payment of Bills. (Resolution No. 7529) 2. Set Public Hearing Date for Arkell Development 60 units, Senior Citizen Rental Housing, Concept Approval, Case No. 614 3. :~solution No. 7530 - Acquisition of Tax Forfeited Lands. 4. First reading of Ordinance No. 642, an ordinance amending the Stillwater City Code, Chapter 31 "The Zoning Ordinance" including therein provisions relating to the Stillwater Industrial Park. - COUNCIL REQUEST ITEM~ STAFF REPORTS (Continued) APPLICATIONS - List to be supplied at meeting. COMMUNICATIONS nUESTIONS/COMMENTS FROM NEWS MEDIA ADJOURNMENT . . . REGULAR MEETING STILLWATER CITV COUNCIL MINUTES November 19, 1985 6:30 P.M. The meeting was called to order by Mayor Peterson. The Invocation was given by City Clerk Johnson. Present: Councilmembers Bodlovick, Junker, Kimble (arrived at 6:45 P.M.), MacDonald, and Mayor Peterson. Absent: None Also Present: City Coordinator Kriesel City Attorney Magnuson Fire Chief Chial Finance Director Caruso Parks & Recreation Director Blekum Ice Arena Manager Bielenberg Building Official Zepper City Clerk Johnson Press: Emily Chapman, Stillwater Gazette Tom Arkell, John Arkell, Pat Brinkman, Gary Swager, Dennis Balyeat, Kit Carlson, Jan VanBenthuysen, Ron Langness, Bill Kemp. APPROVAL OF MINUTES Others: Motion by Councilmember Junker, seconded by Councilmember MacDonald to approve the Minutes of the Regular Meeting of November 5, 1985 as presented. (All in favor) STAFF REPORTS 1. Citl Coordinator - Mr. Kriesel stated he had received a call from Captain Griffith asking if the City would like to purchase the power pole located in Lowell Park which used to provide power for the Jubilee. Parks Direc- tor Blekum stated the City has no use for this pole. Motion by Councilmember Bodlovick, seconded by Councilmember MacDonald that Captain Griffith be notified the City does not wish to purchase the power pole and that he should remove it from Lowell Park. (All in favor) Mr. Kriesel requested authorization to attend a Labor Relations seminar on December 13, 1985 at a cost of $45.00. 1 . . . City Council Minutes November 19, 1985 Regular Meeting Motion by Councilmember Bodlovick, seconded by Councilmember Junker to author- ize attendance at a Labor Relations seminar on December 13, 1985 at a cost of $45.00 for City Coordinator Kriesel. (All in favor) Mr. Kriesel stated that he has the first draft of the Zoning Ordinance change which will bring in the Industrial Park area and requested a Spe- cial Meeting be set between the City Council and Planning Commission. It was decided to set a Special Meeting for this purpose on December 2, 1985 at 7:00 P.M. Councilmember Kimble arrived. Mr. Kriesel requested authorization to advertise for bids in order to dis- pose of two military trucks. Motion by Councilmember Bodlovick, seconded by Councilmember MacDonald to au- thorize an advertisement for bids to dispose of two military trucks. (All in favor) 2. Finance Director - Ms. Caruso stated she distributed the Budget Report for the period ending September 30 to Council and they should contact her if there are questions. Ms. Caruso reported she has received three proposals for City Auditor with a possible three-year contract. She submitted these proposals for Council review. Council stated they will make a decision by the December 3 meeting. Ms. Caruso asked for discussion of the 1986 Budget and tabulation of the surveys. Council and Staff discussion followed. Mr. Kriesel stated tabu- lation would start this week. 3. Building Official - No report. Discussion ensued regarding Arkell Devel- opment and the public hearings involved regarding issuance of bonds, concept approval, etc. 4. Parks & Recreation - Mr. Blekum stated he had no report and deferred to Mr. Bielenberg, Ice Arena Manager. Mr. Bielenberg requested approval from Council to employ Megan Arnie as a concession worker at the Arena. Motion by Councilmember Junker, seconded by Councilmember Bodlovick to employ Megan Arnie as a Part-Time Concession Operator at a salary of $3.65 per hour. (Resolution No. 7532) 2 . . . City Council Minutes November 19, 1985 Regular Meeting Ayes -- Councilmembers Bodlovick, Junker, Kimble, MacDonald and Mayor Peterson. Nays -- None Mr. Bielenberg presented proposals for purchase of a smoke eater for the Ice Arena and recommended that it be purchased from Ron Dornfeld at a cost of $390.00 with the labor to be donated. This is within budget. Motion by Councilmember Junker, seconded by Councilmember Kimble to approve the purchase of a Smoke Eater for the Ice Arena from Ron Dornfeld at a cost of $390.00. (All in favor) 5. Fire Dept. - Chief Chial requested authorization to purchase air bags to be used to raise vehicles and heavy equipment during rescue work. He sta- ted the V.F.W. Auxiliary has donated $500 toward the purchase of this item and the Relief Association ~ill donate another $500, leaving $600 to cOR~ out of the Capital Outlay Budget. Motion by Councilmember Junker, seconded by Councilmember MacDonald to approve the purchase of Air Bags by the Fire Dept., with a $500 donation from both the VFW Auxiliary and Relief Association, with the remaining $600 to come from the Capital Outlay Budget. (All in favor) 6. City Attorney - No report. NEW BUSINESS 1. Acquisition of Tax Forfeited Lands. - Mr. Kriesel explained that there are five parcels of land which have become tax forfeit and are available to the City to acquire for street right-of-way purposes and for protection of ravines (drainage ways). Motion by Councilmember Junker, seconded by Councilmember Kimble to adopt the appropriate resolution to acquire Parcels 11080-5520, 11100-4750, 11150-2400, 11211-5250, and 11221-5400 for street right-of-way purposes and for protection of drainage ways. (Resolution No. 7530) Ayes -- Councilmembers Bodlovick, Junker, Kimble, MacDonald and Mayor Peterson. Nays -- None STAFF REPORTS (Continued) 7. City Clerk - No report. 3 . City Council Minutes November 19, 1985 Regular Meeting Mayor Peterson reported on the number of unpaid parking tags that were accumulating. He has tabulated these tags, letters were sent out and a considerable number of tags have been paid. A small percentage have ig- nored the letter and they seem to be repeat offenders. City Attorney Magnuson stated the ordinance provides that if a person does not pay the tag within 48 hours, a notice is mailed and this constitutes a petty mis- demeanor with a fine up to $100; and further provides that after 2 con- victions within 12 months it becomes a misdemeanor, with up to a $700 fine and/or 90 days in jail. Further discussion followed regarding the steps that could be taken to have the tags paid. Maynr Peterson declared a 15 minute break and the meeting reconvened at 7:35 P.M. INDIVIDUALS AND DELEGATIONS - None PUBLIC HEARINGS 1. This is the day and time for the Public Hearing on the Modification of a Municipal Development Dist. and Tax Increment Financing Dist. Notice of the Public Hearing was published in the Stillwater Gazette . on November 8, 1985. Kit Carlson, speaking for Washington Co. HRA, stated the plan has not been completed and asked Council to continue the Public Hearing until the December 17, 1985 meeting. Motion by Councilmember Junker, seconded by Councilmember Bodlovick to con- tinue the Public Hearing for the Modification of a Municipal Development Dist. and Tax Increment Financing Dist. until the December 17, 1985 meeting. (All in favor) 2. This is the day and time for the Public Hearing for the Housing Plan and proposed Multifamily Housing Revenue Bond Program for GOS & Associates. Notice of the Public Hearing was published in the Stillwater Gazette on November 1, 1985. Mr. Gary Swager was present to explain the plan. He stated preliminary concept approval was received through the Joint Powers Commission in ap- proximately 1980. This involves a 5 acre piece of property which lies east of Greeley St. He is proposing 38 units. The Planning Commission and Building Inspector have not seen the plans as yet. Mr. Balyeat ex- plained there was a change in the rent rate, from $380 - $765 per month, as opposed to $380 - $540 per month. The number of units and dollar ~ount can be changed by IDS maximum, stated Mr. Balyeat. Mr. Balyeat . 4 . . . City Council Minutes November 19, 1985 Regular Meeting stated the purpose of presenting this plan tonight is to gain approval before January 1 because of the severe restrictions which may be placed on these types of bonds. All city requirements will be met. Mayor Peterson reiterated that in approving these bonds, the City is not giving concrete approval for the project itself. City Attorney Magnuson stated the Coun- cil should make an express finding of this point and ask the Developer to assure the Council that the City will be reimbursed for any expenses that occur in connection with this issue, and that in the event it does not pass, they will waive any claims against the City. Mr. Swager stated he is requesting approval of the financing vehicle only. Mayor Peterson closed the Public Hearing. Motion by Councilmember Bodlovick, seconded by Counciloi,ember Junker to adopt the appropriate resolution approving the adoption of a Housing Bond Program for issuance of Multifamily Mortgage Revenue Bonds and authorizing submission of same to the Minnesota Housing Finance Agency for GDS & Associates for an amount not exceeding $2,100,000; to obtain a signed Memorandum of Understand- ing from the developer providing for a guarantee in the form of a Letter of Credit in an amount to be recommended by the City Financial Consultant insur- ing that the City shall not be liable for any expenses incurred by the devel~~- er, that the developer shall pay for any expenses incurred by the City, ~id that this approval shall not constitute any zoning approval ~f this project. (Resolution No. 7533) Ayes -- Councilmembers Bodlovick, Junker, Kimble, MacDonald and Mayor Peterson . Nays -- None 3. This is the day and time for the Public Hearing on the Housing Plan and proposed Muitifamily Housing Revenue Bond Program for Orleans Homes Number One Limited Partnership. Notice of the Public Hearing was published in the Stillwater Gazette on November 1, 1985. Tom Arkell, of Arkell Development, was present to answer questions in re- gard to this plan. Mr. Arkell stated that the architect has planned for 64 units where 60 units had been stated in the Affidavit of Publication. Mr. Balyeat stated, that as far as the bonds are concerned, it can go IDS either way. City Attorney Magnuson stated he does not see this as a pro- blem. Mayor Peterson closed the Public Hearing. 5 . . . City Council Minutes November 19, 1985 Regular Meeting Motion by Councilmember Junker, seconded by Councilmember Kimble to adopt the appropriate resolution approving the adoption of a Housing Bond Program for issuance of Multifamily Mortgage Revenue Bonds and authorizing submission of same to the Minnesota Housing Finance Agency for Orleans Homes Number One Limi- ted Partnership for an amount not exceeding $1,800,000; to obtain a signed Memorandum of Understanding from the developer providing for a guarantee in the form of a Letter of Credit in an amount to be recommended by the City Financial Consultant insuring that the City shall not be liable for any expen- ses incurred by the developer, that the developer shall pay for any expenses incurred by the City, and that this approval shall not constitute any zoning approval of this project. (Resolution No. 7534) Ayes -- Councilmembers Bodlovick, Junker, Kimble, MacDonald and Mayor Peterson. Nays -- None Mr. Ron Langness, Springstead, Inc., was present to advise Council on the status of Tax Increment Fifoancing as it relates to the projects being brought before Council. Based on preliminary information, regarding the Arkell development that was just discussed, it appears that the tax incre- ments would be sufficient to support that amount of money. Mr. Langness and the City have been contacted by the developers suggesting they would like the City to look at the entire 37 acre tract for tax increment financ- ing instead of just the five acre tract. He discussed the total financing needs and stated he does not have enough information to give a solid opin- ion. Perhaps it could support the project. If Council wishes to look at the whole package, Mr. Langeness' recommendation is to issue a one year bond, that the money be set aside, that none of the money be given to the developer until the full Development Agreement is made, and whatever is necessary completed to be sure that there will be adequate money to pay this back. There will be costs that the City will incur for issuing bonds and some liabilities which Council will want to make sure are waived. The City should develop some type of performance bond that will guarantee, that in the event the project falls apart or there is a potential loss of revenues, that the City be reimbursed; and that it covers two phases __ the one year temporary bond, and then a long-term bond where additional costs will be incurred, which should also be covered. Discussion followed regarding bond rating. Mr. Arkell stated he need~ tax increment financing because he could never do the project or he would have to charge higher rents. Further discus- sion followed regarding the date for selling the bonds and the Developer's Agreement being signed before the bond sale. Mr. Langness suggested the proceeds be put into an escrow account until the Development Agreement is signed. He suggested that a guarantee be developed by December 1. 6 . . . City Council Minutes November 19, 1985 Regular Meeting Mr. Kriesel stated most cities charge up to IDS for administrative costs involved in issuance of tax increment bonds. He suggested a 2S charge would be reasonable. Mr. Langness discussed the reasons for the charge. Discussion followed regarding this item, costs involved, the concern for verbal requests regarding the rest of the project, the guarantee from the developer, the Development Agreement, and waiver of liability. Motion by Councilmember Junker, seconded by Councilmember Kimble to adopt the appropriate resolution authorizing the issuance of G.O. Tax Increment Financ- ing Revenue Bonds for an amount up to $1,200,000 for the Orleans Homes Number One Limited Partnership project and setting the date for the bond sale for the evening of December 17, 1985. (Resolution No. 7535) 4. This is the day and time fo~ the Public Hearing for the Housing Plan and proposed Single Family Housing Revenue Bond Program. Notice of the Public Hearing was published in the Stillwater Gazette on October 18, 1985. Bill Kemp, Deputy Director of the Washington County HRA, was present to explain the proposed project. This program will provide first-time home buyers the opportunity to buy homes within a certain purchase price and income limits. If the City adopts this prugram and the Housing Finance Agency approves it, it will be competing with other issues throughout the state for issuance of bonds. The City would approve the specifics of the program. Mayor Peterson closed the Public Hearing. Motion by Councilmember Kimble, seconded by Councilmember Junker to adopt the appropriate resolution ratifying approval of a housing plan and adopting a housing bond program for the issuance of single family mortgage revenue bonds, authorizing submission of same to the Minnesota Housing Finance Agency, author- izing the issuance of bonds pursuant thereby by the Washington Co. Housing and Redevelopment Authority, and approving a policy report of the Washington Co. Housing and Redevelopment Authority. (Resolution No. 7536) Ayes -- Councilmembers Bodlovick, Junker, Kimble, MacDonald and Mayor Peterson. Nays -- None Mayor Peterson declared a seven minute recess. Lowell Inn Development Pro~ect - Mr. Langness stated the Lowell Inn is requestlng tax increment flnancing for expansion of the Inn. He explained 7 . City Council Minutes November 19, 1985 Regular Meeting they are working with HRA to receive an allocation for this project. Ac- cording to a memo from James B. McComb & Associates the tax increment can support a bond of approximately $2.7 million, but would like to increase this to $3.5 million. Mr. Langness stated he has not had the opportunity to evaluate this. He suggests two options: the City could say they only go to $2.7 million or go to $3.5 million and require the Lowell Inn to provide the City justification for that amount Gf money. He suggested the same approach be applied to this project as was applied to the Arkell pro- ject, requiring guarantees, etc. Mr. Balyeat stated the Lowell Inn expects the project to generate 270 jobs with a payroll of 1.9 million. Mr. Langness advised the City to make sure the public purpose is taken care of and to state a maximum amount for the bond issue. Motion by Councilmember Junker, seconded by Councilmember Kimble to adopt the appropriate resolution authorizing the issuance of G.O. Tax Increment Financ- ing Revenue Bonds for an amount up to $3.5 million for the Lowell Inn project and setting the date for the bond sale for the evening of December 17, 1985. (Resolution No. 7537) Council stated an agreement also be developed for the Lowell Inn project including the same stipulations applied to the Arkell project and GDS pro- ject. . Kit Carlson, of HRA, stated that in conjunction with the Lowell Inn Devel- opment request that a public hearing date be set for December 17, 1985, for review of the Tax Increment plan which will be developed. Motion by Councilmember Bodlovick, seconded by Councilmember Kimble to set a Public Hearing for December 17, 1985 for review of the Tax Increment plan which will be developed for the Lowell Inn project. (All in favor) UNFINISHED BUSINESS 1. The continuation of discussion regarding the Planning Commission is fur- ther continued until the December 3 meeting. 2. Accepting Work & Ordering Final Payment for L.I. 226, Wildwood Pines Third Addition. - Motion by Councilmember Junker, seconded by Councilmember Bodlovick to adopt the appropriate resolution accepting the work and ordering final payment for L.I. 226, Wildwood Pines Third Addition. (Resolution No. 7531) Ayes -- Councilmembers BOdlovick, Junker, Kimble, MacDonald and Mayor Peterson Nays -- None . 8 . . . City Council Minutes November 19, 1985 Regular Meeting NEW BUSINESS 1. Directing Payment of Bills Motion by Councilmember Junker, seconded by Councilmember Bodlovick to adopt the appropriate resolution Directing the Payment of Bills. (Resolution No. 7529). Ayes -- Councilmembers Bodlovick, Junker, Kimble, MacDonald and Mayor Peterson. Nays -- None 2. Set Public Hearing Date for Concept Approval - Arkell Development Project, Case No. 614. Motion by Councilmember BOdlovick, seconded by Councilmember Junker to set a Public Hearing for December 3, 1985 for Arkell Development, Concept Approval. (All in favor) 4. First reading c~ Ordinance No. 642, amending Chapter 31, "The Zoning Ordinance". Motion by Ccuncilmember Junker, seconded by Councilmember MacDonald for a first reading of Ordinance No. 642, amending the Stillwater City Code, ChJpter 31 "The Zoning Ordinance" including therein provisions relating to the Stillwater Industrial Park. (All in favor) COUNCIL REQUEST ITEMS APPLICATIONS Motion uy Councilmember MacDonald, seconded by Councilmember Junker, to ap- prove tile following Contractor's License: (All in favor) CONTRACTORS Tom Geiger Services, Inc. 348 5th Avenue So. Bayport, Mn. 55003 General Contractor New Motion by Councilmember Kimble, seconded by Councilmember Junker to approve the following Regular Off-Sale Liquor Licenses: (All in favor) 9 . . . City Council Minutes November 19, 1985 Regular Meeting REGULAR OFF SALE LIQUOR J.L.H., Inc. d/b/a John's Bar 302 S. Main Street Kinsel's, Inc. 118 E. Chestnut St. Lowell Inn, Inc. 102 N. Second Street The Liquor Store 13900 60th Street N. Renewal Renewal Renewal Renewal Motion by Councilmember Junker, seconded by Councilmember MacDonald to approve the following On-Sale Wine Licenses: (All in favor) ON SALE WINE Ming Sun Chu d/b/a Silver Lake Restaurant 241 S. Main Street Dellaina Olson d/b/a Rivertown Grille Co. 304 N. Main Street Renewa 1 New Motion by Councilmember Bodlovick, seconded by Councilmember Kimble to approve the following Club On-Sale Liquor Licenses: (All in favor) CLUB ON SALE LIQUOR American Legion Post #48 103 S. Third Street Stillwater Eagles Aerie #94 227 S. Main Street Stillwater Lodge '179, B.P.O. Elks 279 E. Myrtle Street Stillwater Country Club, Inc. 1421 N. Fourth Street Council discussion followed regarding the the State by the Stillwater Country Club. objecting to the following application: Renewa 1 Renewal Renewal Renewal gambling application submitted to Council did not take any action 10 . City Council Minutes November 19, 1985 Regular Meeting GAMBLING License Application Submitted to Minn. Gambling Control Board Stillwater Country Club 1421 N. Fourth Street Class B - Raffles, Paddlewheels, Tipboards, Pull-Tabs Council discussion followed on the need for the employment of a City Planner. Motion by Councilmember Kimble, seconded by Councilmember Bodlovick dire(ting the City Coordinator to advertise for the hiring of a Planning and Zoning Coor- dinator, with the salary to be advertised, depending upon qualifications or to be decided by the Mayor and City Coordinator. (All in favor) City Coordinator Kriesel requested a Special Meeting be held next week to discuss a number of issues, amcng them the job description for the Zoning Administrator. Council and the City Coordinator concurred that a Special Meeting will be held on Tuesday, November 26, at 6:30 P.M. to di,cuss these is~ues, and ~ the City Clerk will send a reminder to Council. Council discussion followed regarding the hiring of the Planner aod bud- getary considerations and manpower needs. The advertisement for a City Planner will wait until after the Special Meeting. ADJOURNMENT Motion by Councilmember Bodlovick, seconded by Councilmember Kimble to adjourn the meeting at 9:50 P.M. (All in favor) Resolutions: No. No. No. No. No. No. 7529 - Directir,g Payment of Bills. 7530 - Acquiriny Tax Forfeit Lands. 7531 - Accepting Work for L. I. 226. 7532 - Employ Megan Arnie as Concession Operator. 7533 - Approving Housing Plan & Revenue Bond Program for GDS & Assoc. 7534 - Approving Housing Plan & Revenue Bond Program for Orleans Homes No.!. 7535 - Setting Bond Sale for 12/17/85 - Orleans Homes No.1. 7536 - Approving Housing Plan & Revenue Bond Program for Single Family Homes. 7537 - Setting Bond Sale for 12/17/85 - Lowell Inn. 11 No. No. No. . . . City Council Minutes November 19, 1985 Regular Meeting ATTEST: lur ~~ CITV CLE 12 (' REGULAR MEETING STILLWATER CITY COUNCIL MINUTES November 19, 1985 6:30 P.M. The meeting was called to order by Mayor Peterson. The Invocation was given by City Clerk Johnson. Present: Councilmembers Bodlovick, Junker, Kimble (arrived at 6:45 P.M.), MacDonald, and Mayor Peterson. Absent: None Also Present: City Coordinator Kriesel City Attorney Magnuson Fire Chief Chial Finance Director Caruso Parks & Recreation Director Blekum Ice Arena Manager Bielenberg Building Official Zepper City Clerk Johnson Press: Emily Chapman, Stillwater Gazette r Others: Tom Arkell, John Arkell, Pat Brinkman, Gary Swager, Dennis Balyeat, Kit Carlson, Jan VanBenthuysen, Ron Langness, Bill Kemp. APPROVAL OF MINUTES Motion by Councilmember Junker, seconded by Councilmember MacDonald to approve the Minutes of the Regular Meeting of November 5, 1985 as presented. (All in favor) STAFF REPORTS 1. Citf Coordinator - Mr. Kriesel stated he had received a call Gri fith asking if the City would like to purchase the power in Lowell Park which used to provide power for the Jubilee. tor Blekum stated the City has no use for this pole. Motion by Councilmember Bodlovick, seconded by Councilmember MacDonald that Captain Griffith be notified the City does not wish to purchase the power pOle and that he should remove it from Lowell Park. (All in favor) from Captain pole located Parks Direc- Mr. Kriesel requested authorization to attend a Labor Relations seminar on December 13, 1985 at a cost of $45.00. (' 1 (' City Council Minutes November 19, 1985 Regular Meeting Motion by Councilmember Bodlovick, seconded by Councilmember Junker to author- ize attendance at a Labor Relations seminar on December 13, 1985 at a cost of $45.00 for City Coordinator Kriesel. (All in favor) Mr. Kriesel stated that he has the first draft of the Zoning Ordinance change which will bring in the Industrial Park area and requested a Spe- cial Meeting be set between the City Council and Planning Commission. It was decided to set a Special Meeting for this purpose on December 2, 1985 at 7:00 P.M. Councilmember Kimble arrived. Mr. Kriesel requested authorization to advertise for bids in order to dis- pose of two military trucks. Motion by Councilmember Bodlovick, seconded by Councilmember MacDonald to au- thorize an advertisement for bids to dispose of two military trucks. (All in favor) 2. Finance Director - Ms. Caruso stated she distributed the Budget Report for the period ending September 30 to Council and they should contact her if there are questions. r Ms. Caruso reported she has received three proposals for City Auditor with a possible three-year contract. She submitted these proposals for Council review. Council stated they will make a decision by the December 3 meeting. Ms. Caruso asked for discussion of the 1986 Budget and tabulation of the surveys. Council and Staff discussion followed. Mr. Kriesel stated tabu- lation would start this week. 3. Building Official - No report. opment and the public hearings concept approval, etc. Discussion ensued regarding Arkell Devel- involved regarding issuance of bonds, 4. Parks & Recreation - Mr. Blekum stated he had no report and deferred to Mr. Bielenberg, Ice Arena Manager. Mr. Bielenberg requested approval from Council to employ Megan Arnie as a concession worker at the Arena. Motion by Councilmember Junker, seconded by Councilmember Bodlovick to employ Megan Arnie as a Part-Time Concession Operator at a salary of $3.65 per hour. (Resolution No. 7532) (' 2 r City Council Minutes November 19, 1985 Regular Meeting Ayes -- Councilmembers Bodlovick, Junker, Kimble, MacDonald and Mayor Peterson. Nays -- None Mr. Bielenberg presented proposals for purchase of a smoke eater for the Ice Arena and recommended that it be purchased from Ron Dornfeld at a cost of $390.00 with the labor to be donated. This is within budget. Motion by Councilmember Junker, seconded by Councilmember Kimble to approve the purchase of a Smoke Eater for the Ice Arena from Ron Dornfeld at a cost of $390.00. (All in favor) 5. Fire Dept. - Chief Chial requested authorization to purchase air bags to be used to raise vehicles and heavy equipment during rescue work. He sta- ted the Y.F.W. Auxiliary has donated $500 toward the purchase of this item and the Relief Association will donate another $500, leaving $600 to come out of the Capital Outlay Budget. r Motion by Councilmember Junker, seconded by Councilmember MacDonald to approve the purchase of Air Bags by the Fire Dept., with a $500 donation from both the YFW Auxiliary and Relief Association, with the remaining $600 to come from the Capital Outlay Budget. (All in favor) 6. City Attorney - No report. NEW BUSINESS 1. Acquisition of Tax Forfeited Lands. - Mr. Kriesel explained that there are five parcels of land which have become tax forfeit and are available to the City to acquire for street right-of-way purposes and for protection of ravines (drainage ways). Motion by Councilmember Junker, seconded by Councilmember Kimble to adopt the appropriate resolution to acquire Parcels 11080-5520, 11100-4750, 11150-2400, 11211-5250, and 11221-5400 for street right-of-way purposes and for protection of drainage ways. (Resolution No. 7530) Ayes -- Councilmembers Bodlovick, Junker, Kimble, MacDonald and Mayor Peterson. Nays -- None STAFF REPORTS (Continued) 7. City Clerk - No report. r 3 ~ City Council Minutes November 19, 1985 Regular Meeting Mayor Peterson reported on the number of unpaid parking tags that were accumulating. He has tabulated these tags, letters were sent out and a considerable number of tags have been paid. A small percentage have ig- nored the letter and they seem to be repeat offenders. City Attorney Magnuson stated the ordinance provides that if a person does not pay the tag within 48 hours, a notice is mailed and this constitutes a petty mis- demeanor with a fine up to $100; and further provides that after 2 con- victions within 12 months it becomes a misdemeanor, with up to a $700 fine and/or 90 days in jail. Further discussion followed regarding the steps that could be taken to have the tags paid. Mayor Peterson declared a 15 minute break and the meeting reconvened at 7:35 P.M. INDIVIDUALS AND DELEGATIONS - None PUBLIC HEARINGS 1. This is the day and time for the Public Hearing on the Modification of a Municipal Development Dist. and Tax Increment Financing Dist. Notice of the Public Hearing was published in the Stillwater Gazette r-' on November 8, 1985. Kit Carlson, speaking for Washington Co. HRA, stated the plan has not been completed and asked Council to continue the Public Hearing until the December 17, 1985 meeting. Motion by Councilmember Junker, seconded by Councilmember Bodlovick to con- tinue the Public Hearing for the Modification of a MuniCipal Development Dist. and Tax Increment Financing Dist. until the December 17, 1985 meeting. (All in favor) 2. This is the day and time for the Public Hearing for the Housing Plan and proposed Multifamily Housing Revenue Bond Program for GDS & Associates. Notice of the Public Hearing was published in the Stillwater Gazette on November 1, 1985. Mr. Gary Swager was present to explain the plan. He stated preliminary concept approval was received through the Joint Powers Commission in ap- proximately 1980. This involves a 5 acre piece of property which lies east of Greeley St. He is proposing 38 units. The Planning Commission and Building Inspector have not seen the plans as yet. Mr. Balyeat ex- plained there was a change in the rent rate, from $380 - $765 per month, as opposed to $380 - $540 per month. The number of units and dollar amount can be changed by 10% maximum, stated Mr. Balyeat. Mr. Balyeat r-' 4 f' City Council Minutes November 19, 1985 Regular Meeting r stated the purpose of presenting this plan tonight is to gain approval before January 1 because of the severe restrictions which may be placed on these types of bonds. All city requirements will be met. Mayor Peterson reiterated that in approving these bonds, the City is not giving concrete approval for the project itself. City Attorney Magnuson stated the Coun- cil should make an express finding of this point and ask the Developer to assure the Council that the City will be reimbursed for any expenses that occur in connection with this issue, and that in the event it does not pass, they will waive any claims against the City. Mr. Swager stated he is requesting approval of the financing vehicle only. Mayor Peterson closed the Public Hearing. Motion by Councilmember Bodlovick, seconded by Councilmember Junker to adopt the appropriate resolution approving the adoption of a Housing Bond Program for issuance of Multifamily Mortgage Revenue Bonds and authorizing submission of same to the Minnesota Housing Finance Agency for GOS & Associates for an amount not exceeding $2,100,000; to obtain a signed Memorandum of Understand- ing from the developer providing for a guarantee in the form of a Letter of Credit in an amount to be recommended by the City Financial Consultant insur- ing that the City shall not be liable for any expenses incurred by the develop- er, that the developer shall pay for any expenses incurred by the City, and that this approval shall not constitute any zoning approval of this project. (Resolution No. 7533) Ayes -- Councilmembers Bodlovick, Junker, Kimble, MacDonald and Mayor Peterson. Nays -- None 3. This is the day and time for the Public Hearing on the Housing Plan and proposed Multifamily Housing Revenue Bond Program for Orleans Homes Number One Limited Partnership. Notice of the Public Hearing was published in the Stillwater Gazette on November 1, 1985. Tom Arkell, of Arkell Development, was present to answer questions in re- gard to this plan. Mr. Arkell stated that the architect has planned for 64 units where 60 units had been stated in the Affidavit of Publication. Mr. Balyeat stated, that as far as the bonds are concerned, it can go 10S either way. City Attorney Magnuson stated he does not see this as a pro- blem. Mayor Peterson closed the Public Hearing. r 5 r City Council Minutes November 19, 1985 Regular Meeting Motion by Councilmember Junker, seconded by Councilmember Kimble to adopt the appropriate resolution approving the adoption of a Housing Bond Program for issuance of Multifamily Mortgage Revenue Bonds and authorizing submission of same to the Minnesota Housing Finance Agency for Orleans Homes Number One Limi- ted Partnership for an amount not exceeding $1,800,000; to obtain a signed Memorandum of Understanding from the developer providing for a guarantee in the form of a Letter of Credit in an amount to be recommended by the City Financial Consultant insuring that the City shall not be liable for any expen- ses incurred by the developer, that the developer shall pay for any expenses incurred by the City, and that this approval shall not constitute any zoning approval of this project. (Resolution No. 7534) Ayes -- Councilmembers Bodlovick, Junker, Kimble, MacDonald and Mayor Peterson. Nays -- None r Mr. Ron Langness, Springstead, Inc., was present to advise Council on the status of Tax Increment Financing as it relates to the projects being brought before Council. Based on preliminary information, regarding the Arkell development that was just discussed, it appears that the tax incre- ments would be sufficient to support that amount of money. Mr. Langness and the City have been contacted by the developers suggesting they would like the City to look at the entire 37 acre tract for tax increment financ- ing instead of just the five acre tract. He discussed the total financing needs and stated he does not have enough information to give a solid opin- ion. Perhaps it could support the project. If Council wishes to look at the whole package, Mr. Langeness' recommendation is to issue a one year bond, that the money be set aside, that none of the money be given to the developer until the full Development Agreement is made, and whatever is necessary completed to be sure that there will be adequate money to pay this back. There will be costs that the City will incur for issuing bonds and some liabilities which Council will want to make sure are waived. The City should develop some type of performance bond that will guarantee, that in the event the project falls apart or there is a potential loss of revenues, that the City be reimbursed; and that it covers two phases __ the one year temporary bond, and then a long-term bond where additional costs will be incurred, which should also be covered. Discussion followed regarding bond rating. Mr. Arkell stated he needs tax increment financing because he could never do the project or he would have to charge higher rents. Further discus- sion followed regarding the date for selling the bonds and the Developer's Agreement being signed before the bond sale. Mr. Langness suggested the proceeds be put into an escrow account until the Development Agreement is signed. He suggested that a guarantee be developed by December 1. r 6 r r r- City Council Minutes November 19, 1985 Regular Meeting Mr. Kriesel stated most cities charge up to 10S for administrative costs involved in issuance of tax increment bonds. He suggested a 2S charge would be reasonable. Mr. Langness discussed the reasons for the charge. Discussion followed regarding this item, costs involved, the concern for verbal requests regarding the rest of the project, the guarantee from the developer, the Development Agreement, and waiver of liability. Motion by Councilmember Junker, seconded by Councilmember Kimble to adopt the appropriate resolution authorizing the issuance of G.O. Tax Increment Financ- ing Revenue Bonds for an amount up to $1,200,000 for the Orleans Homes Number One Limited Partnership project and setting the date for the bond sale for the evening of December 17, 1985. (Resolution No. 7535) 4. This is the day and time for the Public Hearing for the Housing Plan and proposed Single Family Housing Revenue Bond Program. Notice of the Public Hearing was published in the Stillwater Gazette on October 18, 1985. Bill Kemp, Deputy Director of the Washington County HRA, was present to explain the proposed project. This program will provide first-time home buyers the opportunity to buy homes within a certain purchase price and income limits. If the City adopts this program and the Housing Finance Agency approves it, it will be competing with other issues throughout the state for issuance of bonds. The City would approve the specifics of the program. Mayor Peterson closed the Public Hearing. Motion by Councilmember Kimble, seconded by Councilmember Junker to adopt the appropriate resolution ratifying approval of a housing plan and adopting a housing bond program for the issuance of single family mortgage revenue bonds, authorizing submission of same to the Minnesota Housing Finance Agency, author- izing the issuance of bonds pursuant thereby by the Washington Co. Housing and Redevelopment Authority, and approving a policy report of the Washington Co. Housing and Redevelopment Authority. (Resol ution No. 7536) Ayes -- Councilmembers Bodlovick, Junker, Kimble, MacDonald and Mayor Peterson. Nays -- None Mayor Peterson declared a seven minute recess. Lowell Inn Develo ment Pro ect - Mr. Langness stated the Lowell Inn is request ng tax lncrement nancing for expansion of the Inn. He explained 7 r City Council Minutes November 19, 1985 Regular Meeting they are working with HRA to receive an allocation for this project. Ac- cording to a memo from James B. McComb & Associates the tax increment can support a bond of approximately $2.7 million, but would like to increase this to $3.5 million. Mr. Langness stated he has not had the opportunity to evaluate this. He suggests two options: the City could say they only go to $2.7 million or go to $3.5 million and require the Lowell Inn to provide the City justification for that amount of money. He suggested the same approach be applied to this project as was applied to the Arkell pro- ject, requiring guarantees, etc. Mr. Balyeat stated the Lowell Inn expects the project to generate 270 jobs with a payroll of 1.9 million. Mr. Langness advised the City to make sure the public purpose is taken care of and to state a maximum amount for the bond issue. Motion by Councilmember Junker, seconded by Councilmember Kimble to adopt the appropriate resolution authorizing the issuance of G.O. Tax Increment Financ- ing Revenue Bonds for an amount up to $3.5 million for the Lowell Inn project and setting the date for the bond sale for the evening of December 17, 1985. (Resolution No. 7537) r Council stated an agreement also be developed for the Lowell Inn project including the same stipulations applied to the Arkell project and GDS pro- ject. Kit Carlson, of HRA, stated that in conjunction with the Lowell Inn Devel- opment request that a public hearing date be set for December 17, 1985, for review of the Tax Increment plan which will be developed. Motion by Councilmember Bodlovick, seconded by Councilmember Kimble to set a Public Hearing for December 17, 1985 for review of the Tax Increment plan which will be developed for the Lowell Inn project. (All in favor) UNFINISHED BUSINESS 1. The continuation of discussion regarding the Planning Commission is fur- ther continued until the December 3 meeting. 2. Accepting Work & Ordering Final Payment for L.r. 226, Wildwood Pines Third Addition. Motion by Councilmember Junker, seconded by Councilmember Bodlovick to adopt the appropriate resolution accepting the work and ordering final payment for L.I. 226, Wildwood Pines Third Addition. (Resolution No. 7531) Ayes Nays Councilmembers Bodlovick, Junker, Kimble, MacDonald and Mayor Peterson None r 8 r City Council Minutes November 19, 1985 Regular Meeting NEW BUSINESS 1. Directing Payment of Bills Motion by Councilmember Junker, seconded by Councilmember Bodlovick to adopt the appropriate resolution Directing the Payment of Bills. (Resolution No. 7529). Ayes -- Councilmembers Bodlovick, Junker, Kimble, MacDonald and Mayor Peterson. Nays -- None 2. Set Public Hearing Date for Concept Approval - Arkell Development Project, Case No. 614. Motion by Councilmember Bodlovick, seconded by Councilmember Junker to set a Public Hearing for December 3, 1985 for Arkell Development, Concept Approval. (All in favor) r 4. First reading of Ordinance No. 642, amending Chapter 31, "The Zoning Ordinance". Motion by Councilmember Junker, seconded by Councilmember MacDonald for a first reading of Ordinance No. 642, amending the Stillwater City Code, Chapter 31 "The Zoning Ordinance" including therein provisions relating to the Stillwater Industrial Park. (All in favor) COUNCIL REQUEST ITEMS APPLICATIONS Motion by Councilmember MacDonald, seconded by Councilmember Junker, to ap- prove the following Contractor's License: (All in favor) CONTRACTORS Tom Geiger Services, Inc. 348 5th Avenue So. Bayport, Mn. 55003 Motion by Councilmember Kimble, seconded by Councilmember Junker to approve the following Regular Off-Sale Liquor Licenses: (All in favor) General Contractor New (' 9 r City Council Minutes November 19, 1985 Regular Meeting REGULAR OFF SALE LIQUOR J.L.H., Inc. d/b/a John's Bar 302 S. Main Street Renewal Kinsel's, Inc. 118 E. Chestnut St. Renewal Lowell Inn, Inc. 102 N. Second Street Renewal The Liquor Store 13900 60th Street N. Renewal Motion by Councilmember Junker, seconded by Councilmember MacDonald to approve the following On-Sale Wine Licenses: (All in favor) ON SALE WINE Ming Sun Chu d/b/a Silver Lake Restaurant 241 S. Main Street Dellaina Olson d/b/a Rivertown Grille Co. 304 N. Main Street Renewal r New Motion by Councilmember Bodlovick, seconded by Councilmember Kimble to approve the following Club On-Sale Liquor Licenses: (All in favor) CLUB ON SALE LIQUOR American Legion Post #48 Renewal 103 S. Third Street Stillwater Eagles Aerie #94 Renewal 227 S. Main Street Stillwater Lodge #179, B.P.O. Elks Renewal 279 E. Myrtle Street Stillwater Country Club, Inc. Renewal 1421 N. Fourth Street Council discussion followed regarding the gambling application submitted to the State by the Stillwater Country Club. Council did not take any action objecting to the following application: r 10 r City Council Minutes November 19, 1985 Regular Meeting Submitted GAMBLING License Application to Minn. Gambling Control Board Stillwater Country Club 1421 N. Fourth Street Class B - Raffles, Paddlewheels, Tipboards, Pu 11- Tabs Council discussion followed on the need for the employment of a City Planner. Motion by Councilmember Kimble, seconded by Councilmember Bodlovick directing the City Coordinator to advertise for the hiring of a Planning and Zoning Coor- dinator, with the salary to be advertised, depending upon qualifications or to be decided by the Mayor and City Coordinator. (All in favor) City Coordinator Kriesel requested a Special Meeting be held next week to discuss a number of issues, among them the job description for the Zoning Administrator. Council and the City Coordinator concurred that a Special Meeting will be held on Tuesday, November 26, at 6:30 P.M. to discuss these issues, and ~ the City Clerk will send a reminder to Council. Council discussion followed regarding the hiring of the Planner and bud- getary considerations and manpower needs. The advertisement for a City Planner will wait until after the Special Meeting. ADJOURNMENT Motion by Councilmember Bodlovick, seconded by Councilmember Kimble to adjourn the meeting at 9:50 P.M. (All in favor) Resolutions: No. 7529 No. 7530 No. 7531 No. 7532 No. 7533 No. 7534 - Directing Payment of Bills. - Acquiring Tax Forfeit Lands. - Accepting Work for L. I. 226. - Employ Megan Arnie as Concession Operator. - Approving Housing Plan & Revenue Bond Program for.GDS & Assoc. - Approving Housing Plan & Revenue Bond Program for Orleans Homes No.1. - Setting Bond Sale for 12/17/85 - Orleans Homes No.1. - Approving Housing Plan & Revenue Bond Program for Single Family Homes. - Setting Bond Sale for 12/17/85 - Lowell Inn. No. 7535 No. 7536 No. 7537 ~ 11 '" r r City Council Minutes November 19, 1985 Regul ar Meeti ng ATTEST' YLr dv.u~ CITY CLE 12