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City Council Minutes 11-28-1994MINUTES REGULAR. MEETING - MONTICELLO CITY COUNCIL Monday, November 28, 1994 - 7 p.m. Members Present: Brad Fyle, Shirley Anderson, Clint Herbst, Warren Smith, Dan Blonigen Members Absent: None 2. A royal of minutes of the s ecial meetin held November 9 1994 and the regular meeting held November 14, 1994. A motion was made by Warren Smith and seconded by Shirley Anderson to approve the minutes of the special meeting held November 9, 1994, as submitted. Voting in favor: Brad Fyle, Shirley Anderson, Warren Smith, Dan Blonigen. Abstaining: Clint Herbst. A motion was made by Warren Smith and seconded by Dan Blonigen to approve the minutes of the regular meeting held November 14, 1994, as submitted. Motion carried unanimously. 1 3. Consideration of addin items to the a enda. A. Consideration of enterin into an a Bement with H-Windaw Com an concernin future ac uisition of Lots 1 2 and 3 Block 1 Oakwood Industrial Park Second Addition. It was the consensus of Council to add this item to the agenda. City Administrator Rick Wolfsteller explained that at the previous meeting, Council discussed entering into an option agreement with H- Window for Lots 1, 2, and 3, Block 1, Oakwood Industrial Park Second Addition; however, since no one from H-Window was in attendance at the meeting, Council decided that these lots would be put on the market for sale. Wolfsteller noted that after informing Mr. Steve Lemme of H-Window of the Council's action, Lemme requested that this item again be placed on the agenda and that either he or a representative of the company would be in attendance to discuss entering into an option agreement with the City. Wolfsteller went on to explain that a purchase proposal has been received from H-Window proposing that the price of the three lots be revalued at $70,000 rather than staffs proposed $79,350 due to a gas line main that runs through one of the lots. In addition, H-Window proposes that the City offer a 30% discount from the $70,000, which results in a $49,000 purchase price as the base for an annual option fee. It is also proposed that the annual option fee be figured using a Page 1 Council Minutes - 11/28/94 fixed 5% annual interest. rate for 10 years, and H-Window would include a $1,150 annual payment for the estimated real estate taxes for the three lots. Wolfsteller also noted that tax increment financing would not be available to write down the land cost if H-Window purchased the land at this time; however, if the City enters into an option agreement for the lots, tax increment financing could be used in the fiiture since H- Window would not be considered the owner of the property. Wolfsteller added that if the price of the land is lowered now, Council may not want to use TIF later when H-Window purchases the property, as that would lower the price even further. Councilmember Smith suggested that perhaps a compromise could be reached if Council agreed to a price in the range of $64,000. After discussion, a motion was made by Warren Smith and seconded by Shirley Anderson to approve entering into an option agreement with H-Window for Lots 1, 2, and 3, Block 1, Oakwood Industrial Park Second Addition, with a base purchase price of $64,000, a 5% annual interest rate to determine the annual option fee for 10 years, and H-Window to include a $1,150 annual payment for the estimated real estate taxes. Motion carried unanimously. 4. Citizens comments/ etitions re nests and com hints. None. 5. Public hearin for modification of the redevelo ment lan and boundaries for Redevelo ment Pro'ect No. 1 and modification of TIF Plan for District # 1-9 (Tap ers . Mayor Fyle opened the public hearing. Qllie Koropchak, Economic Development Director, explained that Bill and Barbara Tapper, dba Genereux Fine Wood Products, Inc., are proposing a $700,000 expansion by adding an 18,000 sq fi production area and second- floor mezzanine, which is projected to create 15 new jobs. Koropchak noted that adoption of the proposed resolution would result in modification of the TIF plan for District 1-9 and would increase its budget by $30,000. Surplus funds from Districts 1-3, 1-5, and 1-6 would be used for assistance; and since these districts and District 1-9 were certified before June 1, 1990, there would be no HACA loss to the City. She also noted that fiends are expected to be recovered by the end of the district life through taxes generated. Page 2 Council Minutes - 11/28/94 Korapchak went on to note that the 30-day notice to the taxing jurisdictions and the public hearing notice requirements per Minnesota Statutes have been met. There being no comment from the public, Mayor Fy1e closed the public hearing. Mayor Fy1e noted that he is opposed to the use of TIF for business expansion, as it was his view that the project would likely continue without TIF assistance; however, he did not oppose use of the Greater Monticello Enterprise Fund for business expansion. It was the view of Councilmembers Smith and Anderson that another purpose of tax increment financing is to help solid businesses expand in Monticello; therefore, they were not opposed to the use of TIF for this expansion project. After discussion, a motion was made by Clint Herbst and seconded by Warren Smith to adopt the resolution modifying the Redevelopment Plan far Redevelopment Project No. 1 and modification of plans for TIF Districts 1-1 through ].-17, specifically the plan for TIF District No. 1-9 for the proposed expansion (Tappers). Voting in favor: Clint Herbst, Warren Smith, Shirley Anderson, Dan Blonigen. Opposed: Brad Fyle. SEE RESOLUTION 94-36. 6. Public hearin for ado tion of TIF Plan for TIF District # 1-18 River Mill . Economic Development Director Ollie Korapchak reported that the proposed 12-year pay-as-you-go Soils Condition District is being established to assist with costs associated with reclamation of a mined gravel project in conjunction with the proposed River Mill residential subdivision. Although a Soils Condition District has a maximum life of 12 years, it is anticipated that the district will be decertified in 1999 or upon collection of tax increment sufficient to cover the $102,000 front-end investment made by the developer. Koropchak stated that District #1-18 boundaries will encompass the 72-acre Krautbauer property, as it is necessary to excavate, grade, spread, and respread the topsoils of the entire area in order to restore the mined gravel pit as referenced in the Geotechnical Evaluation prepared by Braun Intertec. Koropchak went on to note that the 30-day notice and public hearing notice requirements have been met according to Minnesota Statutes. She also noted that Steve Bubul of Holmes and Graven recommends that the public hearing be held but that Council table adoption of the resolution until the December 12 Council meeting to allow for approval of the annexation by the Minnesota Municipal Board and execution of the private redevelopment contract. Page 3 Council Minutes - 11/28/94 City Attorney Paul Weingarden reported that he talked with Mr. Bubul regarding the recommendation to table adoption of the resolution. After explaining that the request for TIF is a necessity in terms of proceeding with the project and that the annexation will not proceed if TIF is not available, Bubul indicated he would be agreeable to Council adopting the resolution at this time to create the district provided it is specified that the resolution becomes effective only after annexation is granted by the Minnesota Municipal Board. Mayor Fyle then opened the public hearing. Cauncilmember Herbst questioned why the district boundaries as outlined included the entire 72 acres rather than only the gravel pit area, and he also noted that he is opposed to the use of tax increment financing for this project. It was the view of Herbst and Councilmember Blonigen that the cost of correcting the gravel pit site should be borne by the owner or the buyer and should not be financed by TIF as proposed. Rick Murray of Residential Development, Inc., stated that Braun Intertec performed a soils investigation of the 72-acre site, which found that unusual soil conditions exist throughout the entire site. It was also noted that it would take longer to recover the TIF money from a smaller area and that the district can be decertified quicker if it covers a larger area. James Casserly, economic development consultant representing the developer, added that the long-term impact of the development will be dramatic, as current taxes on the site are approximately $2,000 but should exceed $300,000 in the future, with $50,000+ to the City. Councilmember Herbst noted his concern with the design of the proposed twinhomes in the development. It was his view that building design should be varied throughout the site. Assistant Administrator O'Neill reported that since the R-2 zoning and TIF were last discussed, the developer and staff have met to discuss building designs, landscaping, and building elevations that can be implemented via the developers agreement. Rick Murray went on to outline building and site design criteria that he has agreed to follow in conjunction with development of the site. Rick Murray added that the 21 twinhome buildings proposed in phase II would be designed as rambler walkouts and not split levels as proposed with phase I. He noted that he has met with City staff and the City Planner to design a landscape plan which will provide a better separation between the freeway exit ramp and the homes adjoining the freeway. There being no further comments from the public, Mayor Fyle closed the public hearing. Page 4 Council Minutes - 1]./28/94 Councilmember Smith stated that using tax increment financing seems to be the best way to develop this area as a unit, as the City will gain significant park land and eliminate the gravel pit. He also noted that the developers have shown they are willing to work with the City in meeting development concerns, and it was Smith's hope that the building design, landscaping, and covenants will be worked out through the developers agreement. Councilmember Anderson questioned how residents can deal with covenant violations. The City Attorney explained that for the most part, they are private covenants. Any item of a covenant that is also included in the city ordinance can be enforced by the City; however, it was Weingarden's suggestion that violations of private covenants be left as a civil matter. After further discussion, a motion was made by Warren Smith and seconded by Shirley Anderson to adopt the resolution adopting the TIF Plan for TIF District #1-18 (River Mill) with the understanding that the resolution will not take effect until annexation is granted by the Minnesota Municipal Board. Voting in Favor: Brad Fyle, Warren Smith, Shirley Anderson. Opposed: Clint Herbst, Dan Blonigen. SEE RESOLUTION 94-37. 7. Consideration of resolutions su ortin annexation of the Robert Krautbauer and Joe Abbot ro erties in con'unction with final lat of the River Mill subdivision. Assistant Administrator O'Neill reported that at the previous Council meeting, Joe Abbot reinstated his petition for annexation of his property along with the Krautbauer property. Because the Cauncil vote on the annexation matter was 2-2, the petitioners requested that this item again be considered by the full Council. O'Neill also noted that annexation is contingent on the final plat and developers agreement being approved, in addition to approval of annexation by the Minnesota Municipal Board. After discussion, a motion was made by Shirley Anderson and seconded by Warren Smith to adopt the resolutions supporting annexation of the Robert Krautbauer and Joe Abbot properties subject to final plat approval, execution of the developers agreement, and approval of annexation by the Minnesota Municipal Board. Voting in favor: Shirley Anderson, Warren Smith, Brad Fyle. Opposed: Clint Herbst, Dan Blonigen. SEE RESOLUTIONS 94-38 AND 94-39. Page 5 Council Minutes - 11/28/94 8. Consideration of recommendations from rec clip committee in re and to garbage containers. Public Works Director Jahn Simola reported that the recycling committee recently discussed the passibility of rainwater continuing to enter our garbage since there are many garbage containers in the city without lids and not all residents bag their garbage. In order to help lessen the amount of rainwater entering the garbage, it is the recommendation of the recycling committee that the City require all new homes constructed in Monticello to use the garbage cart program, with either a 65-gallon or 95-gallon roll- around cart, effective December 1, 1994. In addition, Simola noted that the recycling committee also recommends that, effective April 1, 1995, all garbage cans be required to have lids or require garbage to be bagged. Notice of this new policy on garbage can lids can be printed in the December recycling newsletter. After discussion, a motion was made by Clint Herbst and seconded by Warren Smith to adopt a policy effective December 1, 1994, that requires all new homes in Monticello to use the cart program, and to also adopt a policy effective April 1, 1995, requiring all garbage cans to have lids unless the garbage is securely placed in plastic bags. Matian carried unanimously. 9. Consideration of ado tin an ordinance re atin skateboardin / rollerbladin~ in certain areas of the_ ~. City Administrator Wolfsteller reported that the Police Commission has recently reviewed ordinances from other cities pertaining to regulation of skateboarding and rollerblading within each community. He noted that although city hall has not received many complaints directly from business owners, the City is aware that rollerblading and skateboarding within business parking lots has been increasing and becoming a problem for some business owners. Because these activities are not governed by the same rules as bicycles, etc., technically, the Sheriffs Department cannot issue citations when it becomes a problem. Adopting an ordinance regulating these activities would allow the Sheriffs Department to use the ordinance as a tool if the activity becomes a problem. Wolfsteller explained that the ordinance as proposed primarily regulates rollerblading and skateboarding as follows: 7.. Eliminates skateboarding and similar activities from any B-3 (highway business) or B-4 (regional business) zoning area. This would primarily encompass the downtown area and also along Highway 25, out to the Mall, and south of I-94 along Highway 25. Page 6 Council Minutes - 11/28/94 2. The ordinance would also prohibit skateboarding, etc., on private property without the express permission of the property owner. 3. The ordinance would also prohibit skateboarding, etc., on Highway 25. Wolfsteller went on to note that the Parks Commission also reviewed the ordinance and recommended that the City not prohibit rollerblading and skateboarding on the new pathway system at this time since this may be an appropriate area for these activities. Assistant Administrator O'Neill stated that the ordinance as proposed may be a little too strict, as many people use rollerblades as a form of transportation. He noted that perhaps it could be softened a little by removing language prohibiting rollerblading in the B-3 and B-4 areas and adding language stating that citations would be issued to people rollerblading or skateboarding in a reckless manner. After discussion, a motion was made by Shirley Anderson and seconded by Warren Smith to adopt the ordinance amendment after deleting language prohibiting rollerblading and skateboarding on any public sidewalk, street, or any public parking lot situated in the Central Business District, and by adding language making it an offense to rollerblade or skateboard in any area of the city in a careless, reckless, or negligent manner. Motion carried unanimously. SEE ORDINANCE AMENDMENT NO. 263. 10. Consideration of fundin a ortion of a com rehensive sewer stud . Assistant Administrator O'Neill reported that the City has been contacted by Orrin Thompson Homes regarding potential development of 80-120 acres in an area near the Oak Ridge development. In addition, Tony Emmerich has indicated a strong interest in development of a 40-acre site directly east of the Oak Ridge development. O'Neill noted that although most of the area proposed for development is within the Orderly Annexation Area, it is outside the sanitary sewer service area; therefore, it is proposed that a comprehensive sanitary sewer study be performed to review the existing infrastructure and determine the best method and cost for providing sewer service to the proposed development area as well as other desirable development areas. O'Neill went to state that the total cost of the study is $20,000, and it is proposed that the cost of the study be divided as follows: Orrin Thompson Homes, $8,000; Tony Emmerich, $7,000; and the City of Monticello, $5,000. Both Tony Emmerich and Orrin Thompson Homes have agreed to pay their proposed share prior to initiation of the study. Page 7 Council Minutes - 11/28/94 Councilmember Anderson questioned whether the City will be able to recover the $5,000 paid by the City for the study. The City Engineer noted that the cost of the study could be funded through the sanitary sewer access fees. After discussion, a motion was made by Shirley Anderson and seconded by Dan Blonigen to authorize a comprehensive sanitary sewer study at a cost of $20,000 to be initiated contingent on grin Thompson Homes and Tony Emmerich paying their portions of the study equaling $].5,000. Motion carried unanimously. 11. Consideration of bills for the month of November. After discussion, a motion was made by Shirley Anderson and seconded by Warren Smith to approve the bills fox the month of November as submitted. Motion carried unanimously. There being no further discussion, the meeting was adjourned. ~~ ~~ K re Doty Qffice Manager :1 Page 8