01-14-99 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL JANUARY 14, 1999 Administrator look at the options availab(e to the City for allowin~ this business to continue. Scalze pointed out that this business is outside stora~e to the max. LaValle indicated that he would rather see the stockpiling and recycling business with a$100,000 building on the property than the pole buitdings in Ryan Industrial Park which have junk cars, tires, and other debris spread overthe property. Fahey stated that he had no prob(em with outside stora~e as (ong as it was properly screened. Fahey noted that Ryan Industria( Park is a place to do business. However, the area needs to be cleaned up. With regard to the Frattalone stockpiling/recycling business, Fahey stated that he is not opposed to extending the a~reement and recommended that staff craft something that meets the majority view of the Council. Scalze felt any extensions must have a legal basis. Scalze also pointed out that other cities do not want this type of business. Fahey directed the City Attorney and City Administrator to prepare a recommendation for the Counci('s next meeting. TRI-DISTRICT Mr. Fred Storti, Tri-District School, appeared before the Council and SCHOOL provided a brief history on the Tri-District School, its purpose and UTILITY mission, as well as how it is funded. Storti pointed out that the City's CONNECTION $160,000 assessment for water and sewer connection was not anticipated AGREEMENT at the time the school was constructed. That assessment was levied at a 7% interest rate, and the school currently owes the City $180,000 as a result of the accruing interest. Storti reported that he has met with the City Administrator to discuss the assessment and interest rate and had requested that the City lower its rate to 6%. Storti asked the Administrator what the cost of interest is to the City on an improvement like this. The City Administrator replied that the City's cost is typically 1.5% to 2% lower than the rate it passes on to property owners. The additional 1.5% to 2% in interest is to cover the City's administrative costs. The Administrator reported that the last project assessed was at a 6.5% interest rate for a ten-year period. More(an pointed out that interest rates are dropping, and su~gested that the School District obtain a loan to pay off the connection char~e. The City Administrator suggested that the issuance costs for a loan would ne~;ate any decrease in interest rates. The Administrator was also unsure of the School's ability to obtain a loan. 12