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City Council Minutes 12-01-2008 SpecialCouncil Minutes: December 1, 2008 MINUTES SPECIAL MEETING - MONTICELLO CITY COUNCIL December 1, 2008 Members Present: Clint Herbst, Wayne Mayer and Tom Perrault. Members Absent: Brian Stumpf and Susie Wojchouski City Administrator Jeff O'Neill welcomed those present at the informational meeting and acknowledged the presence of city staff, council and representatives from the County and the YMCA. Jeff O'Neill outlined areas of discussion that would be covered which included review of the progress of the project; review of funding options; outlining what the next steps are in proceeding with this project and how citizens can be involved. The Bertram Chain of Lakes comprises 1,200 acres lying west of Monticello and within Monticello Township. It consists of 4 undeveloped lakes, 245 acres of mixed vegetation/wetlands and 140 acres of agricultural land. The property is close to I-94 a major corridor. Currently the YMCA operates Camp Manitou at this facility with the camp having been in operation for almost 50 years. Photographs of the area were shown. Jeff O'Neill discussed why it is important to preserve this area. The City, County and State agree that this area has value and should be preserved. It is a one of a kind area with four pristine lakes along a major traffic corridor and close to the metro area. The area is a valuable for wildlife habitat, has high quality native wetlands and significant biodiversity and is identified as such in Monticello's Natural Resource Inventory Assessment. There are opportunities in this area for wetland/savannah restoration projects. The area contains a glacial esker which is a unique land formation created as the glaciers retreated. The presence of a park is another reason for people to live, work and invest in Monticello. Jeff O'Neill discussed the proposal to site a ballfield complex in this area noting there is a regional and local need for additional playing fields. Monticello is centrally located making it an attractive location for tournaments for soccer, softball, and baseball. The tournaments bring in people from outside the Monticello area which benefits the local economy. Nature education programs are also important as are regional trails connecting to the park and winding through the facility. The possibility exists with this project to create other recreational opportunities. The YMCA contacted the City some time ago about their desire to sell the property. The YMCA needed cash to operate the other programs they provide. The City and County got together and talked to the YMCA about keeping the land for a public use rather than selling it to a developer. A task force of City and Wright County officials was set up and worked together to come up with a plan for acquiring the property and developing an overall vision of the area. The YMCA has worked with the City and County to come up with a price and a plan for the acquisition to take place. The YMCA is maintaining a presence at the facility and will be leasing space for the continued operation of Camp Manitou, their day camp. The appraised price for the property is $20,500,000 which is also the purchase price. The City and County have identified the property as a natural resource and recreational land in their respective Council Minutes: December 1, 2008 Comprehensive Land Use Plans. A considerable number of tours of the project area by state officials from various agencies reflect the level of the state's interest in this area. A Memorandum of Understanding has been approved by all parties involved in the purchase. The Memorandum of Understanding sets the table for a number of agreements to follow. It sets the purchase price and establishes a phased acquisition valid through 2013. This was important because the City and County could not get all the state funding that was needed at one time. Property will be purchased over time as state funding becomes available. The County has also indicated they would be willing to up front some of the City`s share of the acquisition cost with the City to pay the County back over time. The Memorandum of Understanding provides for the athletic fields to be purchased when state funds become available. The Memorandum of Understanding contains a provision to allow the YMCA to lease a portion of the land for the operation of their day camp. Having the YMCA in operation at the site is a benefit for the area. The first phase of the acquisition would involve the purchase of parcels #SA and #6 for $3,600,000 and include a use lease agreement covering parcels #1 and #2. The second phase would depend on when state funds are available and would cover parcels #7, #1 and #2. The City and County will pick up the land area to the west and then pick up parcels #5, #4 and #3. Jeff O'Neill briefly discussed the possibility of program coordination between City, County and YMCA. State funding is critical to acquiring the 1200 acres at $20.5 million. The need for state funding is important as park dedication fees alone can't fund the project. A grant of $200,000 was received for this project which has not yet been spent. In addition $1,000,000 in funds was received from LCCMR (Legislative & Citizens Commission on Minnesota's Resources) which would go towards the purchase of parcels #5 and #6. The land would have to be acquired by the end of the year to be eligible for the $1 million. A request for $7,000,000 in funds for this project to be included in the state's bonding bill was made but it was not in the final bill signed by the governor. In the 2008 general election the Clean Water, Land and Legacy Amendment was passed which is meant to provide funding for park land acquisition. These funds will be available in the future and it is hoped that because the Bertram Chain of Lakes project involves multiple entities it will be a more desirable project for funding. Finance Director Tom Kelly talked about City funding of their share of the cost which is just under $6,000,000 with state funding. This cost is just the land acquisition and does not include the cost for development of the athletic complex. The City has park dedication fees of $1,000,000 that can be utilized. The City also owns undeveloped commercial land that could be sold. It is estimated the value of this commercial land to be in excess of $5,000,000 which could be used for the ballfields. Other sources are bond funds where there are reserves left after the bonds have been paid off. These funds, amounting to approximately $1,800,000, can be used as the Council feels appropriate. There are some additional reserves and liquor store funds that could be utilized as well. When development picks up again there will be additional park dedication funds coming in. The City could also levy for this amount through a bond referendum. The County has various funding options available to it and has indicated a willingness to help the City up front some of the acquisition cost. If the City was to levy the $475,000 needed annually, a home valued at $100,000 would see an increase of $28.31 in their taxes; a $200,000 home would have an increase of $56.61 and a $300,000 home would see an increase of $84.92 The County's estimate as to the increase on taxes for the County's share would be $7.54 per year on a $200,000 home. Jeff O'Neill clarified 2 Council Minutes: December 1, 2008 that would be the rate if the City's share was funded in total by a tax levy and the City did not use park dedication fees or reserves to help fund the cost. The next step in the process if to finalize the purchase agreement which is under way and will be ready for Council consideration at their December 8, 2008 meeting. The terms of the lease agreement will also be considered at this meeting. The City will have to identify the source of funds and the mix of funds that will be used to purchase the land. This depends somewhat on the state contribution to the project. There are a lot of variables that will have to be considered. The parties will have to take the necessary steps to secure additional state funding through the Clean Water, Land and Legacy Amendment. Jeff O'Neill stated the City in November had applied to the LCCMR for funds. However, the LCCMR did not award any funds for the Bertram Chain of Lakes project and with the passage of the Clean Water, Land and Legacy Amendment the LCCMR will not be a funding source for this type of project after 2009. Community Development Director, Angela Schumann talked about the development plan for the facility. What will the park look like? She noted that some input has been received as a result of the tours of the area. The Bertram Chain of Lakes Project is an opportunity for the park to be whatever people want the park to be. The City and County invite the public to take part in the visioning process. The process will result in a development plan and capital improvement plan for the project. The plan will have passive and active park areas. It will also cover plans for operation including whether it should be done jointly or have different entities responsible for different areas. The City and County will have information on their websites. Residents can participate by signing up for e-mail updates. Comment cards are also available at this meeting. Residents are urged to lobby their legislators to drum up support for this project. It was noted that although the Clean Water, Land and Legacy Amendment was only passed in November there is already pressure on how these funds should be spent. Jeff O'Neill noted this wrapped up the formal presentation and opened the meeting up for questions. A resident asked what lakes were being considered. Jeff O'Neill said the first phase which is parcels #SA and #6 is a portion of Long Lake and the wetland to the south and east of Long Lake. The YMCA has agreed to hold the land aside through 2013 for the phased acquisition. There was a question on trails within the camp and the condition of the access road to the area. Jeff O'Neill responded that this would need to be looked at. The question was raised as to why this area was being purchased first. Jeff O'Neill noted the area has significant wetland area. A question was raised about reopening the access to the beach. Because of the problems that occurred there in the past it was felt that reopening the access would require policing of the area. While there are issues that need to be resolved the public would like to see that area opened sooner rather than later. A resident asked about the 60 foot strip of right of way which went all the way to the lake and expressed his belief that the right of way to the lake should not have been closed. Wright County Commissioner Pat Sawatzke responded that the County owned right of way in this area but the access to the lake is not located on the County right of way. The County owns right up to the lake on the east side of parcel #7 but then the terrain becomes too steep to be used as an access. The actual access to the lake is on YMCA property. The YMCA didn't want to sell the heart of their property so it was agreed to purchase #SA and #6 first and in the next months they hope to work out the issue of access. Brian Kirk from the YMCA said he wanted to make sure the 3 Council Minutes: December 1, 2008 people understood that the YMCA did not close the access. The DNR, County and YMCA had sat down and talked about the landing. The DNR did not have resources the to handle the landing so they decided to close the landing until there were additional resources to open it. Brian Kirk said there was never public access established to lake but the YMCA may have allowed their access to be used. A property owner across the street from the access said the landing turned into a real bad area with a lot of questionable activities taking place there. If access is restored to Bertram Lake the access should be gated and closed at night to control that kind of activity as well as having the area patrolled. Providing security for the area as well as providing access to the area is an issue that needs to be discussed. The property owner said he understood that the County Park system has Park Patrol Officers that could be used in this area and he reiterated his belief that any access to the landing be gated and secured. Dan Lemm asked about parcels #9 & #10 indicating that at one time there was opening in that area which he believed was used as access to a landing. He thought this was back in the 1960's. Another question that came up was whether any of the property in the project area would be sliced off for housing or development. Jeff O'Neill said the City and County felt the total land area is right for a county park and they are interested in setting up a regional park with a large passive area. The City and County did not feel property development would work into this type of park. If the state did not come through with funding it may be an option for future consideration. However, the City and County both would prefer to see the area used as a natural area. If a developer did come forward with a proposal it would require both the City and County to make a change in their Comprehensive Land Use Plan as the area is presently identified as a natural area in both the City's and County's plan. Pat Sawatkze said the County is not in the mode of starting new projects but this unique which is why they are interested in funding it. He felt the project has to be significant to get funded for a regional park. He noted that Crow Hassan and other regional parks encompass more acreage (2,000-3,000 acres) while the Bertram Chain of Lakes project is only 1200 acres but the project has significant lake shore and that justifies the interest in preserving it. The question was raised as to who will own the land. Although the relationship between the City and County has not been worked out as for operation and maintenance of the facility, the City and County will jointly own the land. Dan Lemm noted the land lies in the township and asked where the township stood in this. The area will remain in the township but it will be owned by the City and the County. Jeff O' Neill thanked the people in attendance for coming and indicated staff would remain if there were any additional questions. ~~ ~~~s~--g~_ Recording Secretary 4