04-25-2016 Council Packet - Laserfiche WebLink

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COUNCIL MINUTES April 11, 2016 DRAFT 4 The project was originally planned with two phases but is being moved to three phases mainly 136 because the agreement could hold up moving on homes that are basically already sold. The council 137 concurred that the developer is producing a good product; further the developer is participating in 138 some needed road improvements. 139 140 Council Member Kusterman moved to approve Resolution No. 16-12 as presented. Council Member 141 Rafferty seconded the motion. Motion carried on a voice vote. 142 143 Council Member Kusterman moved to approve Resolution No. 16-13 as presented. Council Member 144 Maher seconded the motion. Motion carried on a voice vote. 145 146 6D) Consider Resolution No. 16-13, Designating Building as Structurally Substandard, 49 147 Club - Community Development Director Grochala noted the Economic Development Authority 148 (EDA) meeting held earlier in the evening at which action was approved on this matter. The request 149 before the council is to concur with the action to declare the building substandard. It is staff’s intent 150 to next work out an agreement to have the building demolished. Council Member Rafferty asked 151 about using the demolition as a training for fire staff and Public Safety Director Swenson said it 152 wouldn’t be a good use for this particular building. 153 154 Kelly Gunderson, 135 Ulmer Drive, addressed the council. She thanked former Council Member 155 Stoesz for bringing this forward. She is impacted by the building and site. She asked if the address 156 of 6007 Hodgson Road that is noted in the report is all of the property – are there other addresses? 157 Mr. Grochala explained that 6007 is the former 49 Club building, 295 Ash Street is the garage and 158 there is a 3rd parcel that is under the same ownership. The action includes all three parcels. Ms. 159 Gunderson asked about the current value of the property and noted that the public record states that 160 property taxes are overdue on the property. She wonders if there is a benefit to the property owner of 161 having this substandard declaration made. Mr. Grochala ventured to guess that it would give him 162 opportunity to request a lower market value but he doesn’t believe there’s any assessment value. 163 Being late on property taxes isn’t really indicative of anything other than he’s paying them late along 164 with a required penalty. 165 166 Mayor Reinert noted that he is contacted regularly about the property; there is a lot of concern from 167 city residents about it. 168 169 Ms. Gunderson pointed out that the property taxes are not only late at this point but delinquent. 170 Council should be aware of that and what it means. She also remarked that she investigated who 171 owns the property and it would appear that person would be well able to pay the taxes. She also 172 noted the popularity/visibility of the corner; it this possibility an area that could be developed without 173 the use of tax increment financing as would be her preference. She will be watching this carefully as 174 it moves forward. 175 176 Mayor Reinert said he agrees that taxes should be paid. Mr. Grochala said the owner has the same 177 rights as every other taxpayer/property owner and that process will play out as it must; at this point 178 the city isn’t putting any money in. Mayor Reinert suggested that more information on tax increment 179 financing would be welcome. Mr. Grochala said tax increment financing is a system that utilizes 180