04-11-2016 Council Meeting Minutes

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COUNCIL MINUTES April 11, 2016 APPROVED 136 The project was originally planned with two phases but is being moved to three phases mainly 137 because the agreement could hold up moving on homes that are basically already sold. The council 138 concurred that the developer is producing a good product; further the developer is participating in 139 some needed road improvements. 140 141 Council Member Kusterman moved to approve Resolution No. 1642 as presented. Council Member 142 Rafferty seconded the motion. Motion carried on a voice vote. 143 144 Council Member Kusterman moved to approve Resolution No. 1643 as presented. Council Member 145 Maher seconded the motion. Motion carried on a voice vote. 146 147 6D) Consider Resolution No. 1643, Designating Building as Structurally Substandard, 49 148 Club - Community Development Director Grochala noted the Economic Development Authority 149 (EDA) meeting held earlier in the evening at which action was approved on this matter. The request 15o before the council is to concur with the action to declare the building substandard. It is staff s intent 151 to next work out an agreement to have the building demolished. Council Member Rafferty asked 152 about using the demolition as a training for fire staff and Public Safety Director Swenson said it 153 wouldn't be a good use for this particular building. 154 155 Kelly Gunderson, 135 Ulmer Drive, addressed the council. She thanked former Council Member 156 Stoesz for bringing this forward. She is impacted by the building and site. She asked if the address 157 of 6007 Hodgson Road that is noted in the report is all of the property — are there other addresses? 158 Mr. Grochala explained that 6007 is the former 49 Club building, 295 Ash Street is the garage and 159 there is a 3rd parcel that is under the same ownership. The action includes all three parcels. Ms. 160 Gunderson asked about the current value of the property and noted that the public record states that 161 property taxes are overdue on the property. She wonders if there is a benefit to the property owner of 162 having this substandard declaration made. Mr. Grochala ventured to guess that it would give him 163 opportunity to request a lower market value but he doesn't believe there's any assessment value. 164 Being late on property taxes isn't really indicative of anything other than he's paying them late along 165 with a required penalty. 166 167 Mayor Reinert noted that he is contacted regularly about the property; there is a lot of concern from 168 city residents about it. 169 170 Ms. Gunderson pointed out that the property taxes are not only late at this point but delinquent. 171 Council should be aware of that and what it means. She also remarked that she investigated who 172 owns the property and it would appear that person would be well able to pay the taxes. She also 173 noted the popularity/visibility of the corner; it this possibility an area that could be developed without 174 the use of tax increment financing as would be her preference. She will be watching this carefully as 175 it moves forward. 176 177 Mayor Reinert said he agrees that taxes should be paid. Mr. Grochala said the owner has the same 178 rights as every other taxpayer/property owner and that process will play out as it must; at this point 179 the city isn't putting any money in. Mayor Reinert suggested that more information on tax increment 180 financing would be welcome. Mr. Grochala said tax increment financing is a system that utilizes Cl