05/29/2007 Council Minutes - Laserfiche WebLink

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CITY COUNCIL WORK SESSION May 29, 2007 APPROVED • 1 CITY OF LINO LAKES 2 MINUTES 3 4 DATE : May 29, 2007 5 TIME STARTED : 5:30 p.m. 6 TIME ENDED : 6:35 p.m. 7 MEMBERS PRESENT : Councilmember Carlson, O'Donnell, 8 Reinert (part), Stoltz and Mayor Bergeson 9 MEMBERS ABSENT : None 10 11 12 Staff members present: City Administrator, Gordon Heitke; Community Development 13 Director, Mike Grochala; Finance Director, Al Rolek; Police Captain, Kent Strege (part); 14 City Engineer, Jim Studenski; City Planner, Jeff Smyser; Fire Chief, Milo Bennet (part); 15 and City Clerk, Julie Bartell 16 17 REVIEW REGULAR AGENDA ITEMS 18 19 Item 2A, Resolution No. 07-80 providing for issuance and sale of $4,215,000 General 20 Obligation Tax Increment Bonds — Finance Director Rolek and Springsted Bond 21 Counsel Tern Heaton reviewed the staff letter and attachments, noting that this is the 22 bonding portion of the financing plan for the I -35W Lake Drive Interchange Project. The • 23 bonds will be primarily funded using tax increment from the Village and Panatonni 24 districts, with MSA (Municipal State Aid) as a back up. Staff and counsel have used a 25 conservative estimate on the value of development. Although the bonds carry a general 26 obligation, a tax levy is considered just a safety net that is never expected to be utilized. 27 The rating from Moody's on the bonds is pending, however, bond counsel anticipates that 28 this 31 -year note will come in with about a 4.1 percent interest rate. 29 30 Finance Director Rolek reported that the financing plan also includes an interfund loan 31 and staff fully anticipates that loan to be paid back at the back end of the plan. The 32 Council will consider that element at the June 29 council meeting. 33 34 The council asked if a levy would have to be approved first by the council to which Mr. 35 Rolek explained it would not, however, the council will see the matter each year as part 36 of the regular budget process. Since all city costs involved in the project are MSA 37 eligible a levy should never be necessary. 38 39 Item 3Ai, Miller's on Main Special Event Permit; Request for variance from state 40 fire code - Administrator Heitke explained that the owner of Miller's on Main, Chad 41 Wagner, has applied for a special event permit to conduct his annual music and dance 42 event in a tent adjacent to his property. During review of the permit application, it was 43 determined that the proposed tent setback would not meet state fire code requirements. • 44 45 There is a process that allows for request of a variance at the state level but local authorities are requested to consider the matter first. The state established criteria for