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Home My WebLink About07-08-2019 Council PacketEXPANDED AGENDA CITY COUNCIL AGENDA Monday, July 8, 2019 *********** 6:30 p.m. Broadcast live: http://northmetrotv.com/local- meetings/lino-lakes/) City Council: Mayor Reinert, Councilmembers Maher, Manthey, Rafferty and Stoesz City Administrator: Jeff Karlson CITY COUNCIL MEETING, 6:30 P.M.  Roll Call - Council Members Rafferty, Stoesz, Manthey, Maher, and Mayor Reinert were present  Pledge of Allegiance  Open Mike / Public Comment - none  Setting the Agenda: Addition or deletion of agenda items The agenda was approved as presented. 1. CONSENT AGENDA A) Consideration of Expenditures: i) July 8, 2019 (Check No. 110513 through 110597 in the Amount of $329,432.84 B) Consider Approval of June 24, 2019 Work Session Minutes C) Consider Approval of June 24, 2019 Council Meeting Minutes D) Consider Approval of June 24, 2019 Special Council Minutes E) Consider Resolution 19-86, Approving a Temporary On-Sale Liquor License and Special Event Permit for the American Legion Blue Heron Days F) Consider Resolution 19-87, Approving a Special Event Permit for Waldoch Farms Sunflower Festival Action Taken: Motion by Maher, seconded by Rafferty, to approve Consent Agenda Items 1A through 1F as presented was adopted 2. FINANCE DEPARTMENT REPORT No Report 3. ADMINISTRATION DEPARTMENT REPORT A) Consider Resolution No. 19-83, Approving Settlement Agreement with CenturyLink, Jeff Karlson Action Taken: Motion by Stoesz, seconded by Rafferty, to approve Resolution No. 19-83 as presented, was adopted Council Agenda -2- July 8, 2019 B) Consider Appointment of Accounting Clerk/ Utility Billing, Karissa Bartholomew Action Taken: Motion by Maher, seconded by Manthey, to approve the appointment of Katie Christofferson as recommended, was adopted 4. PUBLIC SAFETY DEPARTMENT REPORT A) Consider acceptance of donation from The Patriot Ride, John Swenson Action Taken: Motion by Rafferty, seconded by Maher, to accept the donation as recommended, was adopted 5. PUBLIC SERVICES DEPARTMENT REPORT No Report 6. COMMUNITY DEVELOPMENT REPORT A) Consider Resolution No. 19-75 Denying a Variance for Curb Cut/Driveway Width for 6626 Enid Trail, Katie Larsen Action Taken: Motion by Rafferty, seconded by Manthey, to approve Resolution No. 19-75 as presented, was adopted B) Consider Resolution No. 19-76 Denying a Variance for Impervious Surface Coverage for 6650 Enid Trail, Katie Larsen Action Taken: Motion by Stoesz, seconded by Manthey, to approve Resolution No. 19-76 as presented, was adopted C) Drainage and Utility Easement Vacation, Diane Hankee i) Consider 2nd Reading of Ordinance No. 08-19, Vacating Right-of-Way, Drainage, and Utility Easement, Saddle Club 4th Addition Action Taken: Motion by Maher, seconded by Manthey, to approve the 2nd Reading and Adoption of Ordinance No. 08-19 as presented, was adopted ii) Consider Resolution No. 19-82, Approving Summary Publication of Ordinance No. 08-19 Action Taken: Motion by Maher, seconded by Stoesz, to approve Resolution No. 19-821 as presented, was adopted D) Public Hearing, Consider Resolution No. 19-85, Approving Tax Increment Financing Plan for District 1-13, Michael Grochala Action Taken: Motion by Manthey, seconded by Stoesz, to approve Resolution No. 19-85 as presented, was adopted 7. UNFINISHED BUSINESS None Updated 7/5/2019 CITY COUNCIL AGENDA Monday, July 8, 2019 *********** 6:30 p.m. Broadcast live: http://northmetrotv.com/local- meetings/lino-lakes/) City Council: Mayor Reinert, Councilmembers Maher, Manthey, Rafferty and Stoesz City Administrator: Jeff Karlson CITY COUNCIL MEETING, 6:30 P.M.  Call to Order and Roll Call  Pledge of Allegiance  Open Mike / Public Comment  Setting the Agenda: Addition or Deletion of Agenda Items 1. CONSENT AGENDA A) Consideration of Expenditures: i) July 8, 2019 (Check No. 110513 through 110597 in the Amount of $329,432.84 B) Consider Approval of June 24, 2019 Work Session Minutes C) Consider Approval of June 24, 2019 Council Meeting Minutes D) Consider Approval of June 24, 2019 Special Council Minutes E) Consider Resolution 19-86, Approving a Temporary On-Sale Liquor License and Special Event Permit for the American Legion Blue Heron Days F) Consider Resolution 19-87, Approving a Special Event Permit for Waldoch Farms Sunflower Festival 2. FINANCE DEPARTMENT REPORT No Report 3. ADMINISTRATION DEPARTMENT REPORT A) Consider Resolution No. 19-83, Approving Settlement Agreement with CenturyLink, Jeff Karlson B) Consider Appointment of Accounting Clerk/ Utility Billing, Karissa Bartholomew 4. PUBLIC SAFETY DEPARTMENT REPORT A) Consider acceptance of donation from The Patriot Ride, John Swenson Council Agenda -2- July 8, 2019 5. PUBLIC SERVICES DEPARTMENT REPORT No Report 6. COMMUNITY DEVELOPMENT REPORT A) Consider Resolution No. 19-75 Denying a Variance for Curb Cut/Driveway Width for 6626 Enid Trail, Katie Larsen B) Consider Resolution No. 19-76 Denying a Variance for Impervious Surface Coverage for 6650 Enid Trail, Katie Larsen C) Drainage and Utility Easement Vacation, Diane Hankee i) Consider 2nd Reading of Ordinance No. 08-19, Vacating Right-of-Way, Drainage, and Utility Easement, Saddle Club 4th Addition *Council may vote to dispense with the full reading of the ordinance *Roll call vote is required for adoption of the ordinance ii) Consider Resolution No. 19-82, Approving Summary Publication of Ordinance No. 08-19 D) Public Hearing, Consider Resolution No. 19-85, Approving Tax Increment Financing Plan for District 1-13, Michael Grochala 7. UNFINISHED BUSINESS None 8. NEW BUSINESS None Adjournment Following the regular meeting, the council will reconvene as the Economic Development Authority to consider tax increment financial plan (Lyngblomsten) Community Calendar – A Look Ahead July 08, 2019 through July 22, 2019 Wednesday, July 10 6:30 pm, Council Chambers Planning & Zoning Thursday, July 18 6:30 pm, Community Room Charter Commission Monday, July 22 6:00 pm, Community Room Council Work Session Monday, July 22 6:30 pm, Council Chambers City Council Meeting Expenditures July 8, 2019 Check #110513 to #110597 $329,432.84 City of Lino Lakes Activity Codes Code Description Code Description 401 Mayor/Council 817 Spring Fling 402 Administration 818 Winter Festival 403 Elections 819 Community Gardens 404 Cable TV 822 Family Corn Roast 405 Charter Administration 827 Gobbler Games 407 Finance 830 Adult Golf Lessons 414 Legal Consultants 835 Youth Skating Class 415 Economic Development 850 Golf Academy 416 Planning & Zoning 856 Youth Soccer 417 Engineering 857 Soccer Fundamentals 418 Community Development 860 Secret Shop 420 Police Protection 864 Preschool Playtime 421 Fire Protection 868 Little Goblins Party 422 Building Inspections 871 Flag Football 430 Streets 875 Snow Day 431 Fleet Management 876 Kite Day 432 Government Buildings 877 Rockin' in the Park 450 Parks 879 Movies in the Park 451 Recreation 890 Senior Programs 461 Environmental 462 Solid Waste Abatement 463 Forestry 494 Water 495 Sanitary Sewer 499 Other 802 Dodgeball Camp 806 Youth T-Ball 808 Youth Baseball Camp 810 Youth Playground 811 Youth Safety Camp 812 Youth Art Camps 814 Senior Programs/Book Club AP Checks by Account Number 07/08/2019 City Council Meeting Vendor Fund/Dept Account Amount Check #Description Central Pension Fund 101-000 101-000-2040-000 5,760.00 110514 Central Pension Fund Lincoln National Life Ins Co 101-000 101-000-2040-000 1,307.22 110559 Life Insurance Premiums NCPERS Group Life Insurance 101-000 101-000-2040-000 304.00 110513 Life Insurance Premiums Medica 101-000 101-000-2041-000 11,552.72 110564 Health Insurance Premiums Delta Dental of Minnesota 101-000 101-000-2044-000 1,661.16 110538 Dental Insurance Premiums Lincoln National Life Ins Co 101-000 101-000-3416-000 0.14 110559 Life Insurance Premiums 101-000 Total 20,585.24 Medica 101-402 101-402-4131-000 569.49 110564 Health Insurance Premiums Lincoln National Life Ins Co 101-402 101-402-4133-000 9.00 110559 Life Insurance Premiums Lincoln National Life Ins Co 101-402 101-402-4133-000 80.91 110560 Disability Insurance Premiums Delta Dental of Minnesota 101-402 101-402-4134-000 176.40 110538 Dental Insurance Premiums Optum 101-402 101-402-4310-000 25.00 110571 May Retirees Optum 101-402 101-402-4310-000 70.00 110571 May Cobra 101-402 Total 930.80 Medica 101-407 101-407-4131-000 3,090.77 110564 Health Insurance Premiums Lincoln National Life Ins Co 101-407 101-407-4133-000 16.07 110559 Life Insurance Premiums Lincoln National Life Ins Co 101-407 101-407-4133-000 55.45 110560 Disability Insurance Premiums Delta Dental of Minnesota 101-407 101-407-4134-000 192.63 110538 Dental Insurance Premiums Press Publications Inc. 101-407 101-407-4340-000 197.82 110576 Publish Statement of Cash Flows Press Publications Inc. 101-407 101-407-4340-000 183.69 110576 Publish Statement of Net Position Press Publications Inc. 101-407 101-407-4340-000 183.69 110576 Publish Stmt of Revenues Expenses & Change in Fund Net Position Press Publications Inc. 101-407 101-407-4340-000 155.43 110576 Publish Annual Summary Financial Report 101-407 Total 4,075.55 MN Metro North Tourism Board 101-415 101-415-4900-000 6,117.00 110567 May Tourism Tax 101-415 Total 6,117.00 Medica 101-416 101-416-4131-000 569.49 110564 Health Insurance Premiums Lincoln National Life Ins Co 101-416 101-416-4133-000 2.25 110559 Life Insurance Premiums Lincoln National Life Ins Co 101-416 101-416-4133-000 21.45 110560 Disability Insurance Premiums Delta Dental of Minnesota 101-416 101-416-4134-000 44.10 110538 Dental Insurance Premiums Evenson Neil 101-416 101-416-4331-000 225.00 110540 2nd Quarter Planning & Zoning Board Laden Perry 101-416 101-416-4331-000 225.00 110556 2nd Quarter Planning & Zoning Board Peacock Susan C.101-416 101-416-4331-000 225.00 110573 2nd Quarter Planning & Zoning Board Root Michael 101-416 101-416-4331-000 225.00 110581 2nd Quarter Planning & Zoning Board Ruhland Michael S.101-416 101-416-4331-000 150.00 110582 2nd Quarter Planning & Zoning Board Stimpson Jeremiah 101-416 101-416-4331-000 225.00 110588 2nd Quarter Planning & Zoning Board Tralle Paul 101-416 101-416-4331-000 300.00 110594 2nd Quarter Planning & Zoning Board 101-416 Total 2,212.29 Lincoln National Life Ins Co 101-418 101-418-4133-000 4.50 110559 Life Insurance Premiums Lincoln National Life Ins Co 101-418 101-418-4133-000 37.98 110560 Disability Insurance Premiums 101-418 Total 42.48 Medica 101-420 101-420-4131-000 24,348.29 110564 Health Insurance Premiums Lincoln National Life Ins Co 101-420 101-420-4133-000 68.73 110559 Life Insurance Premiums Lincoln National Life Ins Co 101-420 101-420-4133-000 605.53 110560 Disability Insurance Premiums Delta Dental of Minnesota 101-420 101-420-4134-000 1,220.20 110538 Dental Insurance Premiums Streicher's Inc. 101-420 101-420-4211-000 648.44 110589 9MM Duty Tactical Ammo St. Joseph of the Lakes Catholic Church 101-420 101-420-4213-000 125.00 110587 Safety Camp Facility Use RDJ Specialties Inc. 101-420 101-420-4214-000 371.10 110577 Tattoos Spartan Promotional Group Inc 101-420 101-420-4214-000 149.00 110586 Round Safety Reflectors Spartan Promotional Group Inc 101-420 101-420-4214-000 117.22 110586 Learn 911 Coloring Books Spartan Promotional Group Inc 101-420 101-420-4214-000 213.65 110586 Tri Color Pencils Spartan Promotional Group Inc 101-420 101-420-4214-000 257.15 110586 Neon Glow Sticks Spartan Promotional Group Inc 101-420 101-420-4214-000 614.46 110586 Silly Straws Spartan Promotional Group Inc 101-420 101-420-4214-000 146.10 110586 Small Spiral Notebooks Spartan Promotional Group Inc 101-420 101-420-4214-000 515.59 110586 Beach Balls Aspen Mills Inc. 101-420 101-420-4370-000 -68.95 110526 Uniform Allowance N. Hamann Aspen Mills Inc. 101-420 101-420-4370-000 34.85 110526 CSO Uniform S. Bergeron Aspen Mills Inc. 101-420 101-420-4370-000 34.95 110526 Uniform Allowance T. Vang Aspen Mills Inc. 101-420 101-420-4370-000 396.40 110526 Uniform Allowance K. Kraemer Streicher's Inc. 101-420 101-420-4370-000 111.99 110589 Uniform Allowance T. Vang Anoka County Central Communications 101-420 101-420-4410-000 10.30 110522 Language Line Usage 101-420 Total 29,920.00 Page 1 AP Checks by Account Number 07/08/2019 City Council Meeting Vendor Fund/Dept Account Amount Check #Description Medica 101-421 101-421-4131-000 1,308.29 110564 Health Insurance Premiums Lincoln National Life Ins Co 101-421 101-421-4133-000 5.52 110559 Life Insurance Premiums Lincoln National Life Ins Co 101-421 101-421-4133-000 43.57 110560 Disability Insurance Premiums Delta Dental of Minnesota 101-421 101-421-4134-000 63.90 110538 Dental Insurance Premiums RDJ Specialties Inc. 101-421 101-421-4214-000 371.10 110577 Tattoos Spartan Promotional Group Inc 101-421 101-421-4214-000 146.10 110586 Small Spiral Notebooks Spartan Promotional Group Inc 101-421 101-421-4214-000 213.65 110586 Tri Color Pencils Spartan Promotional Group Inc 101-421 101-421-4214-000 257.15 110586 Neon Glow Sticks Spartan Promotional Group Inc 101-421 101-421-4214-000 117.22 110586 Learn 911 Coloring Books Menards - Forest Lake 101-421 101-421-4240-000 59.82 110565 Push Broom Advanced Graphix Inc. 101-421 101-421-4370-000 33.00 110518 Helmet Names Alex Air Apparatus Inc. 101-421 101-421-4410-000 790.00 110519 Annual Full Service on Breathing Air Compressor Bureau of Criminal Apprehension 101-421 101-421-4410-000 33.25 110528 Firefighter Fingerprint Criminal History Check Bureau of Criminal Apprehension 101-421 101-421-4410-000 33.25 110529 Firefighter Fingerprint Criminal History Check 101-421 Total 3,475.82 Medica 101-422 101-422-4131-000 2,372.26 110564 Health Insurance Premiums Lincoln National Life Ins Co 101-422 101-422-4133-000 7.89 110559 Life Insurance Premiums Lincoln National Life Ins Co 101-422 101-422-4133-000 57.54 110560 Disability Insurance Premiums Delta Dental of Minnesota 101-422 101-422-4134-000 132.30 110538 Dental Insurance Premiums 101-422 Total 2,569.99 Medica 101-430 101-430-4131-000 3,590.55 110564 Health Insurance Premiums Lincoln National Life Ins Co 101-430 101-430-4133-000 15.20 110559 Life Insurance Premiums Lincoln National Life Ins Co 101-430 101-430-4133-000 103.75 110560 Disability Insurance Premiums Delta Dental of Minnesota 101-430 101-430-4134-000 249.16 110538 Dental Insurance Premiums Menards - Forest Lake 101-430 101-430-4211-000 102.72 110565 2x4 12' Forming Stakes Fastenal Company 101-430 101-430-4223-000 46.57 110542 Hardware for Signs City of St. Paul 101-430 101-430-4224-000 5,486.34 110533 Asphalt Mix City of St. Paul 101-430 101-430-4224-000 3,664.64 110533 Asphalt Mix CenturyLink 101-430 101-430-4385-000 55.42 110531 Signal Phone Arcade Asphalt Inc. 101-430 101-430-4410-000 3,591.00 110525 Road Patch 2261 Ash Street Roadkill Animal Control 101-430 101-430-4410-000 93.00 110579 April Dead Deer Removal Upper Cut Tree Service 101-430 101-430-4410-000 525.00 110595 Remove Elm Tree at 6219 Bald Eagle Blvd Earl F. Andersen 101-430 101-430-5000-000 749.15 110539 Signs Left Lane Ends Merge Earl F. Andersen 101-430 101-430-5000-000 2,241.45 110539 Signs Merge w/ Arrow Lane Ends Lane Closed Road Work Ahead 101-430 Total 20,513.95 Medica 101-431 101-431-4131-000 1,134.68 110564 Health Insurance Premiums Lincoln National Life Ins Co 101-431 101-431-4133-000 3.37 110559 Life Insurance Premiums Lincoln National Life Ins Co 101-431 101-431-4133-000 23.24 110560 Disability Insurance Premiums Delta Dental of Minnesota 101-431 101-431-4134-000 66.15 110538 Dental Insurance Premiums Mansfield Oil Company 101-431 101-431-4212-000 5,160.27 110562 2 296 Conv 87 Oct E-10 Mansfield Oil Company 101-431 101-431-4212-000 1,624.70 110562 700 Dyed B20 ULS #2 Clean 365 Factory Motor Parts Company 101-431 101-431-4221-000 114.20 110541 Stock Batteries Factory Motor Parts Company 101-431 101-431-4221-000 22.56 110541 Stock Orange AF Prediluted Factory Motor Parts Company 101-431 101-431-4221-000 89.65 110541 #310 CCA500 RC85 Factory Motor Parts Company 101-431 101-431-4221-000 60.48 110541 #310 Brake Rotors Factory Motor Parts Company 101-431 101-431-4221-000 116.62 110541 #231 Molded Radiator Hoses Orange AF Conc Fastenal Company 101-431 101-431-4221-000 9.63 110542 #200 Vibrator Bolts L.T.G. Power Equipment 101-431 101-431-4221-000 40.48 110555 #405 Pulley Lano Equipment 101-431 101-431-4221-000 97.40 110557 Belt for the Bobcat Mower Attachment O'Reilly Automotive Stores 101-431 101-431-4221-000 8.83 110572 #310 Air Filter O'Reilly Automotive Stores 101-431 101-431-4221-000 11.97 110572 Stock Oil Filters O'Reilly Automotive Stores 101-431 101-431-4221-000 64.47 110572 #310 Disc Pad Set Brake Bolt Kit Semi-Met Pad Pomp's Tire Service Inc. 101-431 101-431-4221-000 360.00 110575 #405 & #144 Tires Towmaster 101-431 101-431-4221-000 633.53 110593 #200 Vibrator Unit Towmaster 101-431 101-431-4221-000 6.14 110593 #709 Rope Ring with Integral Bracket Walser Polar Chevrolet 101-431 101-431-4221-000 14.87 110596 #231 Parts Safety Kleen Corporation Inc. 101-431 101-431-4300-000 50.42 110583 Parts Washer Service Solvent AmeriPride Services Inc. 101-431 101-431-4410-000 64.64 110521 Shop Towel Service 101-431 Total 9,778.30 Wipers & Wipes Inc. 101-432 101-432-4211-000 59.16 110597 Can Liners Dalco Inc. 101-432 101-432-4211-503 42.92 110535 White Loop Band Mops Page 2 AP Checks by Account Number 07/08/2019 City Council Meeting Vendor Fund/Dept Account Amount Check #Description Frattallone's/Circle Pines Ace 101-432 101-432-4211-503 6.57 110544 Galvanized Nipples Anoka County Treasury Office 101-432 101-432-4300-500 75.00 110524 July Broadband Anoka County Treasury Office 101-432 101-432-4300-501 75.00 110524 July Broadband Anoka County Treasury Office 101-432 101-432-4300-503 75.00 110524 July Broadband Roof Spec Inc. 101-432 101-432-4361-000 2,000.00 110580 April City Hall Roof Construction Administration AmeriPride Services Inc. 101-432 101-432-4410-501 126.97 110521 Mats AmeriPride Services Inc. 101-432 101-432-4410-502 144.83 110521 Mats 101-432 Total 2,605.45 Medica 101-450 101-450-4131-000 2,516.69 110564 Health Insurance Premiums Lincoln National Life Ins Co 101-450 101-450-4133-000 11.69 110559 Life Insurance Premiums Lincoln National Life Ins Co 101-450 101-450-4133-000 83.84 110560 Disability Insurance Premiums Delta Dental of Minnesota 101-450 101-450-4134-000 229.31 110538 Dental Insurance Premiums Davis Equipment Corporation 101-450 101-450-4211-000 418.80 110537 Turf Parts Frattallone's/Circle Pines Ace 101-450 101-450-4211-000 21.68 110544 Rear Trigger Nozzle Hose Gerten Greenhouses & Garden Center Inc. 101-450 101-450-4211-000 404.86 110545 Prodeuce Ranger Pro International Security Products 101-450 101-450-4211-000 873.06 110553 Wenzel Farms Split Rail Replacement Gooder Clark J.101-450 101-450-4331-000 75.00 110546 2nd Quarter Park Board Haworth Abby 101-450 101-450-4331-000 75.00 110551 2nd Quarter Park Board Huelman Patrick H.101-450 101-450-4331-000 100.00 110552 2nd Quarter Park Board Jensen Richard 101-450 101-450-4331-000 75.00 110554 2nd Quarter Park Board Levi Andrew 101-450 101-450-4331-000 75.00 110558 2nd Quarter Park Board Nordlund John 101-450 101-450-4331-000 75.00 110569 2nd Quarter Park Board Schmidt Andrea 101-450 101-450-4331-000 75.00 110584 2nd Quarter Park Board Great Northern Landscapes Inc. 101-450 101-450-4410-000 2,484.82 110548 Town Center Legacy Spring Start-Up & Repairs 101-450 Total 7,594.75 Medica 101-451 101-451-4131-000 747.42 110564 Health Insurance Premiums Lincoln National Life Ins Co 101-451 101-451-4133-000 3.26 110559 Life Insurance Premiums Lincoln National Life Ins Co 101-451 101-451-4133-000 23.92 110560 Disability Insurance Premiums Delta Dental of Minnesota 101-451 101-451-4134-000 59.52 110538 Dental Insurance Premiums 101-451 Total 834.12 Lincoln National Life Ins Co 101-461 101-461-4133-000 0.51 110559 Life Insurance Premiums Lincoln National Life Ins Co 101-461 101-461-4133-000 7.56 110560 Disability Insurance Premiums Delta Dental of Minnesota 101-461 101-461-4134-000 15.43 110538 Dental Insurance Premiums 101-461 Total 23.50 Lincoln National Life Ins Co 101-462 101-462-4133-000 0.45 110559 Life Insurance Premiums Lincoln National Life Ins Co 101-462 101-462-4133-000 6.47 110560 Disability Insurance Premiums Delta Dental of Minnesota 101-462 101-462-4134-000 13.23 110538 Dental Insurance Premiums Green Lights Recycling Inc. 101-462 101-462-4410-000 97.64 110549 Lightbulb Recycling Lino Lakes Lions Club 101-462 101-462-4410-000 400.00 110561 Annual Spring Recycling Day Assistance 101-462 Total 517.79 Lincoln National Life Ins Co 101-463 101-463-4133-000 0.51 110559 Life Insurance Premiums Lincoln National Life Ins Co 101-463 101-463-4133-000 7.56 110560 Disability Insurance Premiums Delta Dental of Minnesota 101-463 101-463-4134-000 15.44 110538 Dental Insurance Premiums Margolis Company 101-463 101-463-4410-000 4,099.70 110563 Trees 101-463 Total 4,123.21 Amazing Balloons MN LLC 201-203 201-203-4410-822 300.00 110520 Balloon Artist for Corn Roast Shirts And Skins Inc 201-203 201-203-4410-822 600.00 110585 Corn Roast Entertainment 201-203 Total 900.00 Anoka County Highway Department 205-497 205-497-4211-000 50.00 110523 Road Closure Special Event Permit Dali Fitness & Entertainment 205-497 205-497-4300-000 400.00 110536 Blue Heron Days Entertainment The Bazillions 205-497 205-497-4300-000 300.00 110592 Blue Heron Days Entertainment 205-497 Total 750.00 Advanced Graphix Inc. 206-420 206-420-5000-000 250.00 110518 #312 UTV Ranger Reflective Graphics Polaris Sales Inc. 206-420 206-420-5000-000 25,323.52 110574 #312 Polaris Ranger Crew XP 1000 EPS North Star Edition 206-420 Total 25,573.52 Citizen Observer LLC 207-420 207-420-4410-000 2,000.00 110516 Tip 411 Social Media & Community Notification Platform 207-420 Total 2,000.00 Ace Solid Waste Inc. 401-432 401-432-5000-000 567.23 110517 Waste Removal Fire Station #1 Remodel 401-432 Total 567.23 Polaris Sales Inc. 402-420 402-420-5000-000 10,000.00 110574 #312 Polaris Ranger Crew XP 1000 EPS North Star Edition 402-420 Total 10,000.00 Page 3 AP Checks by Account Number 07/08/2019 City Council Meeting Vendor Fund/Dept Account Amount Check #Description Midwest Groundcover 405-499 405-499-4410-119 4,860.00 110566 Installation of Engineered Wood Fiber NorthPointe Park 405-499 Total 4,860.00 Cemstone Products Company 425-499 425-499-4410-130 839.00 110530 Concrete Sunrise Park Playground Project 425-499 Total 839.00 Medica 601-494 601-494-4131-000 1,633.98 110564 Health Insurance Premiums Lincoln National Life Ins Co 601-494 601-494-4133-000 43.79 110560 Disability Insurance Premiums Lincoln National Life Ins Co 601-494 601-494-4133-000 6.60 110559 Life Insurance Premiums Delta Dental of Minnesota 601-494 601-494-4134-000 124.58 110538 Dental Insurance Premiums Core & Main LP 601-494 601-494-4211-000 2,399.20 110534 Valve Parts Core & Main LP 601-494 601-494-4211-000 2,714.57 110534 Valve Parts Core & Main LP 601-494 601-494-4211-000 1,809.19 110534 Hydrant CPLGS Core & Main LP 601-494 601-494-4211-000 2,285.64 110534 Valve Parts Hach Company 601-494 601-494-4211-000 622.97 110550 Pocket Colorimeter Bulk Powder Dispenser Refill NAC Mechanical & Electrical 601-494 601-494-4300-000 2,170.00 110568 Annual RPZ Maintenance Northway Irrigation/Landscape 601-494 601-494-4300-000 533.15 110570 Irrigation Repair at Well #2 Sycom Inc. 601-494 601-494-4300-000 1,955.00 110590 Well 4 Transducer & Snow Goose Power Monitor & Software Update Circle Pines Post Office 601-494 601-494-4322-000 324.97 110515 Utility Billing Postage Finance & Commerce Inc. 601-494 601-494-4340-000 246.20 110543 Ad for Bids Well House #1 Rehabilitation T.A. Schifsky and Sons Inc. 601-494 601-494-4410-129 95,125.92 110591 Pheasant Hills Water Main Repair 601-494 Total 111,995.76 Medica 602-495 602-495-4131-000 1,633.95 110564 Health Insurance Premiums Lincoln National Life Ins Co 602-495 602-495-4133-000 43.79 110560 Disability Insurance Premiums Lincoln National Life Ins Co 602-495 602-495-4133-000 6.56 110559 Life Insurance Premiums Delta Dental of Minnesota 602-495 602-495-4134-000 124.59 110538 Dental Insurance Premiums Grainger 602-495 602-495-4240-000 140.60 110547 Utility Wedge Tip Ritter & Ritter Sewer Service Inc. 602-495 602-495-4300-000 1,400.00 110578 Clean Lift Stations Sycom Inc. 602-495 602-495-4300-000 2,683.50 110590 Well 4 Transducer & Snow Goose Power Monitor & Software Update Circle Pines Post Office 602-495 602-495-4322-000 324.97 110515 Utility Billing Postage 602-495 Total 6,357.96 Margolis Company 801-000 801-000-2306-105 7,363.28 110563 Trees NorthPointe 3rd Addition Margolis Company 801-000 801-000-2314-105 1,530.96 110563 Trees Preserve at Lino Lakes Margolis Company 801-000 801-000-2316-105 1,129.62 110563 Trees Saddle Club 2nd Addition Boulder Contracting LLC 801-000 801-000-2318-000 3,425.00 110527 Escrow Release 2081 Chestnut Street Boulder Contracting LLC 801-000 801-000-2318-000 4,425.00 110527 Escrow Release 2099 Chestnut Street Chapman Homes Inc. 801-000 801-000-2318-000 3,350.00 110532 Escrow Release 570 Marshan Lane Margolis Company 801-000 801-000-2319-105 15,048.09 110563 Trees NorthPointe 4th Addition Margolis Company 801-000 801-000-2329-105 401.34 110563 Trees NorthPointe Margolis Company 801-000 801-000-2332-105 1,229.91 110563 Trees Saddle Club Margolis Company 801-000 801-000-2333-105 1,222.36 110563 Trees NorthPointe 2nd Addition Margolis Company 801-000 801-000-2352-105 1,608.60 110563 Trees Chavez Preserve Margolis Company 801-000 801-000-2353-105 8,934.97 110563 Trees St. Clair Estates 801-000 Total 49,669.13 Grand Total 329,432.84 Page 4 Electronic Funds Transfer MN Statute 471.38 Subd. 3 Council Meeting July 8, 2019 Transfer In/(Out) 6/21/2019 Wire from 4M Fund (2018A Bond Acct) 700,000.00 6/21/2019 Wire from Moreton Capital Markets 1,100,000.00 6/25/2019 DOJ TREAS - Body Armor Reimbursement 849.00 6/28/2019 Payroll #13 (155,370.25) 6/28/2019 Payroll #13 Federal Deposit (43,599.35) 6/28/2019 Payroll #13 PERA (42,689.17) 6/28/2019 Payroll #13 State (10,149.11) 6/28/2019 Payroll #13 Child Support (682.37) 6/28/2019 Payroll #13 H.S.A. Bank Pretax (2,550.90) 6/28/2019 Payroll #13 TASC Pretax (883.43) 6/28/2019 Payroll #13 ICMA 457 Def. Comp #301596 (4,590.00) 6/28/2019 Payroll #13 ICMA Roth IRA #706155 (515.75) 6/28/2019 Payroll #13 MSRS HCSP #98946-01 (1,244.04) 6/28/2019 Payroll #13 MSRS Def. Comp #98945-01 (3,360.00) 6/28/2019 Payroll #13 MSRS Roth IRS #98945-01 (490.00) CITY COUNCIL WORK SESSION June 24, 2019 DRAFT 1 CITY OF LINO LAKES 1 MINUTES 2 3 DATE : June 24, 2019 4 TIME STARTED : 6:00 p.m. 5 TIME ENDED : 6:27 p.m. 6 MEMBERS PRESENT : Council Member Rafferty, Maher, 7 Manthey, Stoesz and Mayor Reinert 8 MEMBERS ABSENT : None 9 10 Staff members present: Public Safety Director John Swenson; Community Development 11 Director Michael Grochala; Finance Director Sarah Cotton; City Engineer Diane Hankee; 12 City Clerk Julie Bartell 13 14 Review Regular Council Agenda of June 24, 2019 – 15 16 Items on the agenda were reviewed. 17 18 Item 1D - Mayor Reinert suggested that the permit to sell liquor (beer) at this year’s City 19 Corn Roast be added back to the Consent Agenda for approval. The council discussed 20 the possibility of delaying a vote on the matter. Mayor Reinert remarked that a delay 21 might mean the vendor can’t get everything in place in time for the event. The council 22 concurred to consider the matter at the council meeting. 23 24 Item 1E – Peddler License for Clearway Community Solar – Council Member Stoesz had 25 contacted staff with a question about the City’s code requirement related to business 26 reputation. Specifically, the code indicates that a business should not have more than 27 three complaints with the Better Business Bureau and he believes there are more on this 28 company. 29 30 City Clerk Bartell explained the difficulty of checking a business reputation with the tools 31 referenced in the Code (Better Business Bureau and State Attorney General’s Office). 32 Those don’t appear to be a good source for definitive information. Clerk Bartell asked 33 staff if the council would like staff to look at changing the language in the code or 34 removing it. Mayor Reinert indicated that he would prefer to continue business 35 reputation consideration as part of the code. There was some discussion about the type of 36 business/product of the applicant. 37 38 Council Member Manthey said he’s okay with this license based on the applicant passing 39 the background check but he’s interested in the process for these licenses and how the 40 City can show the residents what is done for safety. 41 42 Council Member Stoesz expressed concern that the City must have some standards for 43 looking at a business reputation. Staff should look at what other cities are doing. 44 45 CITY COUNCIL WORK SESSION June 24, 2019 DRAFT 2 Staff should take a deeper dive on this company and look at what other cities are doing. 46 47 Item 6A – Community Development Director Grochala explained the need to amend the 48 City’s agreement with Anoka County to receive and administer U.S. Department of 49 Housing and Urban Development (HUD) funds. Both amendments proposed are minor. 50 51 Item 6B – City Engineer Hankee explained that the easement dedication is no longer 52 needed with the final plat. 53 54 Item 6D – City Engineer Hankee recalled a previous discussion about replacement of 55 some gate valves. Part of the discussion was to move forward minimizing the amount of 56 vibration from road work equipment. The past weekend, however, there were a couple of 57 service breaks with no work going on. Staff is still recommending approval of the 58 Change Order that will provide some replacement of valves but also to do more 59 exploration on the matter. 60 61 The meeting was adjourned at 6:27 p.m. 62 63 These minutes were considered, corrected and approved at the regular Council meeting held on 64 July 8, 2019. 65 66 67 68 69 Julianne Bartell, City Clerk Jeff Reinert, Mayor 70 71 COUNCIL MINUTES June 24, 2019 DRAFT 1 CITY OF LINO LAKES 1 MINUTES 2 3 DATE : June 24, 2018 4 TIME STARTED : 6:30 p.m. 5 TIME ENDED : 6:50 p.m. 6 MEMBERS PRESENT : Council Member Rafferty, Maher, 7 Manthey, Stoesz and Mayor Reinert 8 MEMBERS ABSENT : 9 10 Staff members present: Community Development Director Michael Grochala; Finance Director Sarah 11 Cotton; Director of Public Safety John Swenson; City Engineer Diane Hankee; City Clerk Julie Bartell 12 13 PUBLIC COMMENT 14 15 No one was present to address the council regarding a matter not on the agenda. 16 17 SETTING THE AGENDA 18 19 The agenda was amended to add Item 1D which had been deleted by staff. 20 21 CONSENT AGENDA 22 23 Council Member Maher moved to approve the Consent Agenda, Items 1A through 1I, as presented. 24 Council Member Rafferty seconded the motion. Motion carried on a voice vote. 25 26 ITEM ACTION 27 28 Consideration of Expenditures: 29 30 June 24, 2019 (Check No. 110392 – 11051, 31 in the amount of $1,636,095.71) Approved 32 33 June 3, 2019 Council Work Session Minutes Approved 34 35 June 10, 2019 City Council Meeting Minutes Approved 36 37 Consider Approval of Resolution No. 19-72, 38 Approving an Application for Temporary On-Sale 39 Intoxicating/3.2 Malt Beverage for the 9th Annual 40 Family Corn Roast Approved 41 42 Consider Approval of Resolution No. 19-73, Approving 43 A Peddler License for Gregory Green, Clearway 44 Community Solar Approved 45 COUNCIL MINUTES June 24, 2019 DRAFT 2 46 Consider Approval of Resolution No. 19-74, Approving 47 Enterprise and Individual Massage License Renewals Approved 48 49 Consider Approval of Resolution No. 19-78, Approving an 50 Application for an Exemption for Gambling Permit for Chain 51 Of Lakes Rotary for 9th Annual Family Corn Roast Approved 52 53 Consider approval of June 10, 2019 Council Minutes, 54 Closed Session Approved 55 56 Consider Approval of Resolution No. 19-79, Approving 57 Special Event Permit for Hammerheart Brewing Approved 58 59 FINANCE DEPARTMENT REPORT 60 There was no report from the Administration Department. 61 62 ADMINISTRATION DEPARTMENT REPORT 63 There was no report from the Administration Department. 64 65 PUBLIC SAFETY DEPARTMENT REPORT 66 67 There was no reports from the Public Safety Department. 68 69 PUBLIC SERVICES DEPARTMENT REPORT 70 There was no report from the Public Services Department. 71 72 COMMUNITY DEVELOPMENT DEPARTMENT REPORT 73 74 6A) Consider Resolution No. 19-77, Approving 1st Amendment to CDBG/HOME 75 Cooperation Agreement with Anoka County – Community Development Director Grochala 76 reviewed the proposed changes to the City’s agreement with Anoka County. The agreement allows 77 the City to receive and administrator U.S. Department of Housing and Urban Development (HUD) 78 funds. The changes are administrative updates only. 79 Council Member Rafferty moved to approve Resolution No. 19-77 as presented. Council Member 80 Maher seconded the motion. Motion carried on a voice vote. 81 6B) Public Hearing; Consider First Reading of Ordinance No. 08-19, Vacating Right-of-Way, 82 Drainage and Utility Easement, Saddle Club 4th Addition – City Engineer Hankee asked that the 83 council hold a public hearing to consider an ordinance vacating certain property within the Saddle Club 84 4th Addn. The easements that would be vacated are no longer required based on the final plat. 85 COUNCIL MINUTES June 24, 2019 DRAFT 3 Mayor Reinert opened the public hearing. There being no one present wishing to speak, the public 86 hearing was closed. 87 88 Council Member Manthey moved to approve the First Reading of Ordinance No. 08-19 as presented. 89 Council Member Stoesz seconded the motion. Motion carried on a voice vote. 90 91 6C) Consider Resolution 19-81, Approving Land Acquisition from Estate of Margaret 92 Carpenter (7685 Lake Drive) - Community Development Director Grochala reported that this 93 acquisition is recommended based on a review of the City’s Economic Development Advisory 94 Committee (EDAC) for future road extension and redevelopment in the area. The property owner 95 has come forward offering the property for sale. 96 97 Mayor Reinert explained that acquisition of this property relates to a future roadway alignment with 98 Marketplace Drive. The current streetway would then be available for development. 99 100 Council Member Manthey moved to approve Resolution No. 19-81 as presented. Council Member 101 Stoesz seconded the motion. Motion carried on a voice vote. 102 103 6D) Consider Resolution No. 19-80, Approving Change Order No. 1, 2019 Mill and Overlay 104 Project – City Engineer Hankee explained that the change order is requested based on a previous 105 discussion with the council to add replacement of certain gate valves to the scope of the Mill and 106 Overlay Project. Based on additional valve issues this past weekend, along with the change order, 107 staff is recommending doing some additional exploratory discovery and getting back to the council 108 with more data. She added that the contractor is scheduled for July 8, weather permitting. 109 110 Council Member Stoesz asked if staff has a communication plan to residents that could experience 111 outages. Ms. Hankee said they have a plan and utilize door hangers generally; an email list will be 112 attempted. 113 114 Council Member Manthey thanked staff for keeping the council up to date on the situation; further 115 exploration is a good idea. 116 117 Council Member Manthey moved to approve Resolution No. 19-80 as presented. Council Member 118 Stoesz seconded the motion. Motion carried on a voice vote. Council Member Rafferty abstained 119 from voting. 120 121 UNFINISHED BUSINESS 122 123 There was no Unfinished Business. 124 125 NEW BUSINESS 126 127 Mayor Reinert explained that school districts do not pay to replace play structures at their facilities. 128 The responsibility generally falls to the school PTO. It can be a large project for those small 129 organizations to raise the amount of funds required. Since the play areas are used by the community 130 COUNCIL MINUTES June 24, 2019 DRAFT 4 as well as students, the council put together a program whereby the City would donate up to $20,000 131 for improvements if the school district matches that by two. He showed a pack of thank you letters 132 from elementary students thanking the City for the effort and funding. It’s a very nice thank you 133 effort and he is very appreciative. 134 135 COMMUNITY EVENTS 136 137 ROCKIN’ IN THE PARK Lino Lakes presents a FREE concert at Sunrise Park this Thursday, June 138 27 from 6:00 p.m. – 8:00 p.m. For more information contact the Parks & Recreation Department at 139 651-982-2440. 140 141 COMMUNITY CALENDAR 142 143 Community Calendar – A Look Ahead 144 June 24, 2019 through July 8, 2019 145 Monday, July 1 6:00 pm, Community Room Council Work Session 146 Monday, July 8 6:30 pm, Council Chambers Council Meeting 147 148 ADJOURN 149 150 There being no further business, Council Member Manthey moved to adjourn at 6:20 p.m. Council 151 Member Stoesz seconded the motion. Motion carried. 152 153 These minutes were considered and approved at the regular Council Meeting, July 8, 2019. 154 155 156 157 158 Julianne Bartell, City Clerk Jeff Reinert, Mayor 159 160 CITY COUNCIL WORK SESSION June 24, 2019 DRAFT 1 CITY OF LINO LAKES 1 MINUTES 2 3 DATE : June 24, 2019 4 TIME STARTED : 6:55 p.m. 5 TIME ENDED : 7:40 p.m. 6 MEMBERS PRESENT : Council Member Rafferty, Maher, 7 Manthey, Stoesz and Mayor Reinert 8 MEMBERS ABSENT : None 9 10 Staff members present: Public Safety Director John Swenson; Community Development 11 Director Michael Grochala; Finance Director Sarah Cotton; City Clerk Julie Bartell 12 13 Lyngblomsten Financial Assistance Request – Attorney Julie Eddington, Kennedy and 14 Graven, and Mikeala Huot, BakerTilly Municipal Advisors, were present. 15 16 Community Development Director Grochala noted that the council has previously 17 discussed the figures involved in this tax increment financing proposal and he noted 18 where that discussion left off. Staff was directed to look at shortening the period of the 19 tax increment. He noted that Ms. Huot would walk through the proposed framework of 20 the plan and Ms. Eddington would review proposed contract details. 21 22 Ms. Huot reviewed a PowerPoint including information on: 23 - Financial Assistance requested for certain elements of the development (senior 24 care building and detached townhomes); 25 - Proposed Assistance (initial request has been reduced by 1.4 million and fee credit 26 of $300,000 – net assistance $3.6 million - over 8.5 year period); 27 - Reduction of assistance based on developer need, fee credit through city policy, 28 expanded boundaries, use of pooled tax increment funds; 29 - Ways to reduce terms of assistance further (increased taxable value, inflation, 30 construction savings, additional fee credits); 31 - Draft tax increment financing plan (highlighted public purpose, qualification, 32 term); 33 34 Ms. Huot and Ms. Eddington responded to Council Member Maher’s question about how 35 areas are included and excluded. It is based on project elements and to be certain that 36 the proposed plan meets legal requirements, staff has received verification from the 37 Office of State Auditor about the areas included in this plan. 38 39 - Term of the district; 40 - Estimated budget of revenues and expenditures; 41 - Contract for private development; 42 - Next steps. 43 44 CITY COUNCIL WORK SESSION June 24, 2019 DRAFT 2 Council Member Stoesz asked about the timing for certifying the base value and Ms. 45 Huot explained that the value will be based on a date and assessed value. 46 47 Mayor Reinert commented that the amount of tax increment has been reduced from an 48 original proposal of $10.5 million; adding the townhomes made a reduction possible. He 49 noted concern about the valuation placed on elements besides the townhomes; that seems 50 low and future increases in value will not be recognized. Ms. Huot said the final amount 51 of that valuation is not clear yet and if the valuation is higher, that would provide for 52 additional reduction in tax increment. The mayor remarked that the calendar looks 53 accurate as far as what can be done. He asked if there will be another valuation from the 54 county before the City commits on the plan. Ms. Huot said that the goal is to have the 55 best estimate prior to the public hearing. Mayor Reinert also mentioned the council’s 56 request for some type of audit on construction costs. 57 58 Julie Eddington reviewed the contract for private development. She explained the uses 59 of the skilled care building and the percentages of use that are allowed. She also 60 explained how reductions in tax increment could be accomplished under the contract 61 language, including through reduced construction costs or sale of parcels sold at a certain 62 profit level. Basically all of the things that the city wants is included in the contract. The 63 contract is still under review by the developer and they may have some minor comments. 64 She added, regarding construction costs, that the City can hire a review of costs to make 65 sure they are in line with industry standards or add language to the contract for reviews 66 during construction. 67 68 Mayor Reinert asked, what if the permits for the skilled nursing aren’t approved and that 69 doesn’t proceed. Ms. Huot explained that the estimated value (cost) will still be 70 reviewed. 71 72 Mayor Reinert expressed support for the project occurring in the City. But he wants due 73 diligence on the plan. His goal for the tax increment plan has been six years but he isn’t 74 sure that’s possible. 75 76 Council Member Stoesz remarked that the contract contains the term “unavoidable 77 delays” at least fifteen times. Does staff see that as a possibility? Ms. Eddington said 78 she has never seen that happen; there are other delays that could be expected. 79 80 Council Member Stoesz remarked that notifying the public on this matter is a challenge 81 because it’s so complex. How can the City inform residents in a way that is 82 understandable? Ms. Huot said the official notice includes language directing people to 83 contact staff with questions. Mayor Reinert asked staff to put together some bullet points 84 that explain clearly the benefits to the city. 85 86 The meeting was adjourned at 7:40 p.m. 87 88 CITY COUNCIL WORK SESSION June 24, 2019 DRAFT 3 These minutes were considered, corrected and approved at the regular Council meeting held on 89 July 8, 2019. 90 91 92 93 94 Julianne Bartell, City Clerk Jeff Reinert, Mayor 95 96 CITY COUNCIL AGENDA ITEM 1E STAFF ORIGINATOR: Lisa Hogstad-Osterhues, Deputy City Clerk MEETING DATE: July 8, 2019 TOPIC: Consider Resolution No. 19-86, Approving an Application for a Temporary On-Sale Liquor License and Special Event Permit during Blue Heron Days for the American Legion Post 566 VOTE REQUIRED: Simple Majority (3/5 Vote Required) BACKGROUND: American Legion Post 566 has applied for a Temporary On-Sale Liquor License and a Special Event Permit during the Blue Heron Days Festival, August 15th - 17th. The American Legion will be fencing off a portion of their property on the east and part of the south side of their building. The Minnesota Alcohol and Gambling Enforcement Division requires a 1 – 4 Day Temporary On- Sale Liquor License to allow the consumption of alcohol in this outdoor area. The applicant is required to submit their request to the City for local approval before the application is submitted to the state for final consideration. The American Legion has submitted to the City an application for a Special Event. The application has been reviewed by staff, including the public safety department. The applicant has been provided with a list of safety conditions. The applicant has agreed to comply with the conditions and to address any other safety considerations that may arise. Therefore, staff is presenting for city council consideration a resolution authorizing the issuance of a Temporary On-Sale Liquor License and a Special Event Permit for the American Legion Post 566. RECOMMENDATION: Approve Resolution No. 19-86 authorizing issuance of a 1-4 Day Temporary On- Sale Liquor License and a Special Event Permit during Blue Heron Days for the American Legion Post 566. CITY OF LINO LAKES RESOLUTION NO. 19-86 AUTHORIZING A TEMPORARY ON-SALE LIQUOR LICENSE AND A SPECIAL EVENT PERMIT DURING THE ANNUAL BLUE HERON DAYS FESTIVAL FOR AN EVENT HELD AT THE AMERICAN LEGION POST 566 ON AUGUST 15, 16 & 17, 2019 WHERAS, the Commander of American Legion Post 566 has submitted an application for a special event permit; and WHERAS, the event plan includes live music outside from 4:00 p.m. to 8:00 p.m. Friday and from 4:00 p.m. to 8:00 p.m. on Saturday after the parade as well as a picnic BBQ. WHERAS, the Legion has indicated that all patrons or members attending the event will receive a proper identification check to ensure no underage alcohol service will occur; and WHERAS, the Public Safety Department has reviewed plans for the event which includes erecting a canopy. The Public Safety Department has provided conditions for the permit; and WHERAS, the Public Safety Department has reviewed the application and event plans; and WHERAS, proof of general liability insurance has been submitted by the American Legion to cover all events held on their property as well as the event held on city property; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lino Lakes, Minnesota: That the City Council authorizes issuance of a Special Event Permit to the American Legion Post 566 for their events scheduled on August 15, 16 & 17, 2019, with the conditions attached hereto. Adopted by the Council of the City of Lino Lakes this 8th day of July, 2019. The motion for the adoption of the foregoing resolution was introduced by Council Member _____________and was duly seconded by Council Member _____________ and upon vote being taken thereon, the following voted in favor thereof: The following voted against same: _____________________ Jeff Reinert, Mayor ATTEST: ________________________ Julianne Bartell, City Clerk Conditions to Special Event Permit Blue Heron Days Family Picnic, August 15, 16 & 17, 2019 American Legion Post 566 Attachment to Resolution No. 19-86 1. All exits within the tent/canopy and the business shall be unobstructed (clear), properly identified, and operational at all times. No locking devices shall be in the “locked “position while the structures are occupied. 2. American Legion’s security representative shall contact Deputy Director of the Police Division Kyle Leibel at the Lino Lakes Public Safety Department prior to the event. 3. “No smoking” signs shall be posted and clearly visible within the tent/canopy area. 4. A 20-foot separation from property lines and structures shall be maintained around the tent/canopy areas. 5. All areas where cooking will take place shall have at least one 5# ABC dry chemical fire extinguisher within 30 feet of the cooking device. Deep frying areas require a class “K” extinguisher as well. 6. The temporary food license permit will be obtained from the Anoka County Environmental Services at 763-422-7063. 7. The tent/canopy shall be properly labeled to show that it has a flame-resistive rating according to national codes. 8. Electrical equipment shall be properly connected and grounded according to the State of Minnesota Electrical Code. Permits from the state and/or city are required for temporary service. 9. The occupant load within the restaurant shall be enforced so that the structure is not over crowded. 10. The owner/operator is responsible for all permits that may be required. 11. All trash and cans from festivities shall be cleaned up by the next morning. 12. A first aid plan shall be in place. Identify a specific person who will call 911 and assure the EMS system has been started. This person would be a “Safety Coordinator.” Lino Lakes Public Safety Fire Station #1 is not staffed on the weekend. CITY COUNCIL AGENDA ITEM 1F STAFF ORIGINATOR: Lisa Hogstad-Osterhues, Deputy City Clerk MEETING DATE: July 8, 2019 TOPIC Consider Resolution No. 19-87, Authorizing Issuance of a Special Event Permit for a Sunflower Festival at Waldoch Farm, Inc. VOTE REQUIRED: 3/5 INTRODUCTION City Code Chapter 615 are the City’s regulations regarding special events. The purpose of these regulations is to protect the health, safety and welfare of citizens by regulating time, place and manner of conduct by establishing permit requirements. The City charges a fee of $50 for special event permits. BACKGROUND The City has received an application from Waldoch Farm, Inc., to hold a special event on their property July 27th and 28th as well as August 3rd and 4th. This is the first annual event. Vanelli’s by the Lake will be on site during this event to offer for sale limited food items as well as wine and beer. Vanelli’s holds a state caterer’s license and is therefore allowed for this type of service. The Public Safety Department has reviewed the application and has signed off on the permit. RECOMMENDATION Waldoch Farm, Inc.’s application for a special event permit meets the requirements of the city code and has not been found to present any safety concerns. Therefore, staff recommends that the council approve Resolution No. 19-87, Authorizing issuance of a Special Event Permit. ATTACHMENTS Resolution No. 19-87 CITY OF LINO LAKES RESOLUTION NO. 19-87 APPROVING A SPECIAL EVENT PERMIT FOR WALDOCH FARM, INC. SUNFLOWER FESTIVAL WHEREAS, Doug Joyer, Assistant Grower/Field Manager/Beekeeper of Waldoch Farm, Inc. has submitted an application for a special event permit; and WHEREAS, Waldoch Farm, Inc. wishes to hold the first annual Sunflower Festival with attractions to bring citizens to their farm. All activities will be located on their property and WHEREAS, the Sunflower Festival festivities held on July 27th and 28th as well as August 3rd and 4th. WHEREAS, Vanelli’s by the Lake will be on-site serving pre-packaged food, wine and beer from 10 a.m. to 3:30 p.m. WHEREAS, Waldoch Farm has submitted detailed plans to set up and operate the activities, including adequate parking plans; and WHEREAS, city staff has reviewed the special event plans and have determined that they meet the requirements of the City’s ordinances; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lino Lakes, Minnesota: That the City Council hereby authorizes the issuance of a Special Event Permit for Waldoch Farms, Inc. Sunflower Festival. Adopted by the Council of the City of Lino Lakes this 8th day of July, 2019. The motion for the adoption of the foregoing resolution was introduced by Council Member _____________and was duly seconded by Council Member _____________ and upon vote being taken thereon, the following voted in favor thereof: The following voted against same: _____________________ Jeff Reinert, Mayor ATTEST: ___________________________ Julianne Bartell, City Clerk CITY COUNCIL AGENDA ITEM 3A STAFF ORIGINATOR: Jeff Karlson, City Administrator MEETING DATE: July 8, 2019 TOPIC: CenturyLink Settlement Agreement VOTE REQUIRED: 3/5 INTRODUCTION The City Council is being asked to consider Resolution No. 19-83, approving a settlement agreement with CenturyLink. BACKGROUND For more than a year now, CenturyLink has stopped actively selling, marketing, and investing in its cable service product. As a result, there has been a significant decrease in the number of cable subscribers over this time, which violates their franchise agreement. CenturyLink announced its intent to exit the cable business. Since it is CenturyLink’s intent to stop providing cable service altogether, it made sense to work with CenturyLink on an orderly transition and allow them to terminate the franchise agreement rather than engage in a franchise compliance process. Attached is a detailed memo that NMTV Executive Director Heidi Arnson provided to the Operations Committee on May 17, 2019. RECOMMENDATION Approval of Resolution No. 19-83. ATTACHMENTS Heidi Arnson’s memo to Operations Committee Resolution No. 19-83 Settlement Agreement CITY OF LINO LAKES RESOLUTION NO. 19-83 APPROVING CENTURYLINK SETTLEMENT AGREEMENT WHEREAS, CenturyLink has announced its intent to exit the cable business due to a significant decrease in the number of cable subscribers; and WHEREAS, CenturyLink has stopped actively selling, marketing, and investing in its cable service product for more than a year; and WHEREAS, there has been a significant decrease in the number of cable subscribers over this time; and WHEREAS, CenturyLink agrees that its cable franchise will terminate upon the expiration of the initial term of the franchise; and WHEREAS, CenturyLink will provide notice to its subscribers with information on how to replace their cable service; and WHEREAS, CenturyLink waives all cable franchise renewal rights; and WHEREAS, this agreement avoids an expensive compliance process that would have little benefit to subscribers; and WHEREAS, the North Metro Telecommunications Commission (NMTC) approved the Settlement Agreement at their May 15, 2019 meeting. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Lino Lakes approves the Settlement Agreement between the NMTV and Qwest Broadband Services, Inc. d/b/a CenturyLink. Adopted by the Council of the City of Lino Lakes this 8th day of July 2019. The motion for the adoption of the foregoing resolution was introduced by Council Member _______________and was duly seconded by Council Member ________________ and upon vote being taken thereon, the following voted in favor thereof: The following voted against same: _______________________________ Jeff Reinert, Mayor ATTEST: ________________________ Julianne Bartell, City Clerk CITY COUNCIL AGENDA ITEM 3B STAFF ORIGINATOR: Karissa Bartholomew, Human Resources Manager MEETING DATE: July 8, 2019 TOPIC: Consider Appointment of Accounting Clerk/ Utility Billing VOTE REQUIRED: 3/5 INTRODUCTION The Council is being asked to approve the appointment of Katie Christofferson to the Accounting Clerk/ Utility Billing position in the Finance Department. BACKGROUND Yelena Brook was promoted to Accounts Payable/ Payroll Technician, creating a vacancy in the Accounting Clerk / Utility Billing role. At this time, staff has completed the recruitment process, provided a conditional offer, and is recommending the approval of Ms. Katie Christofferson for the position. Ms. Christofferson brings with her over four years of accounting experience, ten years of customer service, and is working towards the completion of her Associates Degree in Business. The hourly rate of pay would be $21.03, which is step one of the union wage schedule. The wage schedule has six steps. With the Council’s approval, Ms. Christofferson would start in the position late July. RECOMMENDATION Approve the appointment of Katie Christofferson for the Accounting Clerk/ Utility Billing position. CITY COUNCIL AGENDA ITEM 4A STAFF ORIGINATOR: John Swenson, Public Safety Director MEETING DATE: July 8, 2019 TOPIC: Acceptance of Donation from VOTE REQUIRED: 3/5 INTRODUCTION The 2019 Patriot Ride took place on June 22, 2019. The Patriot Ride is an event to honor and remember all military personnel, veterans, and fallen military in Minnesota. Further information on The Patriot Ride can be found on their website www.thepatriotride.org. BACKGROUND The Patriot Ride starts and ends at the Blaine Airport with part of the ride route coming through Lino Lakes; therefore, members of the Public Safety Department – Police Division and Police Reserves personnel assist with traffic management along the portion of the route in Lino Lakes. The Patriot Ride has informed Mayor Reinert that they wish to make a donation to the Lino Lakes Public Safety Department – Police Division in recognition of the of the police reserve personnel that assisted with the event. Jim Woodruff will be attending the Council meeting on behalf of the Patriot Ride. RECOMMENDATION Staff recommends that Council accept the donation from The Patriot Ride. ATTACHMENTS None. 1 CITY COUNCIL AGENDA ITEM 6A STAFF ORIGINATOR: Katie Larsen, City Planner MEETING DATE: July 8, 2019 TOPIC: Consider Resolution No. 19-75 Denying a Variance for Curb Cut/Driveway Width for 6626 Enid Trail VOTE REQUIRED: 3/5 INTRODUCTION Staff is requesting City Council to consider Resolution No. 19-75 denying a variance for curb cut/driveway width for 6626 Enid Trail. Complete Application Date: May 10, 2019 60-Day Review Deadline: July 7, 2019 120-Day Review Deadline: September 5, 2019 Environmental Board Meeting: NA Park Board Meeting: NA Planning & Zoning Board Meeting: June 12, 2019 Tentative City Council Work Session: July 1, 2019 Tentative City Council Meeting: July 8, 2019 BACKGROUND The property owner of 6626 Enid Trail, Adam Neeck, submitted a Land Use Application for a curb cut/driveway width variance. He is requesting a 34 foot curb cut/driveway width be allowed. City ordinance allows for a maximum 26 foot curb cut/driveway width. ANALYSIS Sharper Homes was issued a building permit in May 2018 to construct a new home at 6626 Enid Trail in the St. Claire Estates subdivision. The certificate of survey submitted with the building permit indicated a proposed curb cut/driveway width at the right-of-way line of 25.5 feet (Attachment #3). The Grading As-built survey dated November 1, 2018 indicated the constructed curb cut/driveway width at 34 foot (Attachment #4). This was also field verified by the City Engineer’s department. The driveway is 8 feet wider than allowed. 2 Per the applicant’s narrative, the closing date to purchase the home was on November 15, 2018 and it was too late in the year to have the driveway replaced (Attachment #2). A temporary certificate of occupancy was issued on November 13, 2018 and a $1,000 escrow was collected from the property owner until the driveway issue is resolved. The parcel is a 16,139 sf corner lot on a platted cul de sac. The paved road and curb are approximately 60 feet from the lot line (aka right-of-way line). The existing driveway is 34 feet wide at the property line and tapers to 20 feet at the curb. The ordinance allows for a 26 foot wide driveway from the property line to the curb. The applicant states in their narrative several reasons why it is hard to comply with the ordinance due to the distance from the curb to the property line. Staff will note that platted cul duc sacs and 4 stall garages are not unique (Attachment #6). The distance from the curb to the property line is not relevant and the Certificate of Survey submitted with the building permit showed that a compliant driveway is possible. A 26 foot wide driveway from the curb to the property line is feasible and would be compliant. The property is zoned R-1, Single Family Residential and is located in an urban residential subdivision. The City Engineer does not approve widening of the curb cut. The property owners would be required to cut out an 8 foot wide section of the driveway. They are requesting a variance instead of having to cut out a section of the driveway. Zoning Ordinance Per Section 1007.044(3)(h): 7. Curb Cut/Driveway Width. No curb cut shall exceed twenty-six (26) feet in width within a residential zoning district, or thirty-six (36) feet in width if the property is in a commercial, industrial, or public/semi-public zoning district, as measured at the street right-of- way line unless approved by the City Engineer. The driveway associated with such curb cut may increase in width at an angle not greater than forty-five (45) degrees. At the March 5, 2018 Council Work Session, staff presented a report regarding driveway widths. The staff report detailed that driveway width restrictions are fairly common and serve a number of purposes. These include: • Maintain front yard green space and enhance the streetscape. • Preserve areas for on-street parking. • Minimize impact and maintenance costs to public right-of-way and utility corridors. • Preserve street snow storage. • Minimize conflicts with vehicle, pedestrian and bicycles using street. • Minimize impervious surfaces. The Council concurred that the current regulations are fine and the ordinance was not amended to allow for wider driveways. Attachment #5 is a Driveway Exhibit depicting a 26 foot wide curb cut and 45 degree angle. Findings of Fact 3 Resolution No. 19-75 details the findings of fact. RECOMMENDATION Staff recommended denial of the variance. The Planning & Zoning Board reviewed the variance application on June 12, 2019 and recommended denial with a 6-0 vote. Resolution No. 19-75 denies the variance to allow for a 34 foot wide curb cut/driveway width at 6626 Enid Trail. ATTACHMENTS 1. Site Location Map 2. Applicant’s Narrative 3. Certificate of Survey 4. Grading As-Built Survey 5. City’s Driveway Exhibit 6. Driveway Photos 7. Resolution No. 19-75 6626 Enid Trail Legend June 4, 2019 Map Powered by DataLink from WSB & Associates 1 in = 600 ft ± DRIVEWAY EXHIBIT LINO LAKES, MINNESOTA STREET A 26' RIGHT OF WAY LINE PROPERTY LINEDRIVEWAYPROPERTY LINECURB CURB CUT WIDTH AT RIGHT OF WAY LINE: 26 FT. MAXIMUM IF RESIDENTIAL 36 FT. MAXIMUM IF COMMERCIAL DRIVEWAY MAY INCREASE AT AN ANGLE NOT GREATER THAN 45°. Nov. 2018 1 CITY OF LINO LAKES RESOLUTION NO. 19-75 RESOLUTION DENYING A VARIANCE FOR CURB CUT/DRIVEWAY WIDTH FOR 6626 ENID TRAIL WHEREAS, the City received a land use application for a variance for curb cut/driveway width for 6626 Enid Trail; and WHEREAS, the legal description of the property is Lot 9, Block 2, St Clair Estates, Lino Lakes, Anoka County, Minnesota; and WHEREAS, the property is zoned R-1, Single Family Residential for an urban residential subdivision and allows for driveways in residential zoning districts; and WHEREAS, Section 1007.044(3)(h)7 states no curb cut shall exceed 26 feet in width within a residential zoning district as measured at the street right-of-way; and WHEREAS, the house builder constructed the curb cut/driveway to 34 feet wide as measured at the street right-of-way; and WHEREAS, the Planning & Zoning Board reviewed the variance application on June 12, 2019 and recommended denial with a 6-0 vote. NOW, THEREFORE BE IT RESOLVED by The City Council of The City of Lino Lakes hereby makes the following: FINDINGS OF FACT No variance shall be granted unless it meets all the criteria in paragraphs 1. through 7. below. The City shall make findings regarding compliance with these criteria. 1. The variance shall be in harmony with the general purposes and intent of the ordinance. The general purpose and intent of the ordinance is to alleviate or prevent congestion of the public right-of-way and to promote the safety and general welfare of the public, by establishing minimum requirements for off-street parking of motor vehicles upon various parcels of land or structures. The variance to allow for a 34 foot curb cut/ driveway width is not harmonious with the general purposes and intent of the ordinance. 2. The variance shall be consistent with the comprehensive plan. Per the Comprehensive Plan, the property is guided for Low Density Residential land use. The variance request is consistent with the comprehensive plan. The applicant’s property is intended for single family dwellings with houses, garages and driveways. 2 3. There shall be practical difficulties in complying with the ordinance. “Practical difficulties,” as used in connection with the granting of a variance, means that the property owner proposes to use the property in a reasonable manner not permitted by the ordinance. Economic considerations alone do not constitute practical difficulties. Practical difficulties include, but are not limited to, inadequate access to direct sunlight for solar energy systems. The property owner proposes to use the property in a reasonable manner; however, there is no practical difficulty in complying with the required 26 foot curb cut/driveway width. 4. The plight of the landowner shall be due to circumstances unique to the property not created by the landowner. The plight of the landowner was created by the home builder installing a 34 foot wide driveway. There are no unique circumstances to the property causing them to not be able to comply with the ordinance. 5. The variance shall not alter the essential character of the locality. The variance will not alter the essential character of the locality which is a single family residential neighborhood with houses, garages and driveways. 6. A variance shall not be granted for any use that is not allowed under the ordinance for property in the zoning district where the subject site is located. The variance will not be granted for any use that is not allowed under the ordinance for property in the zoning district. The property is zoned R-1, Single Family Residential for a residential subdivision and driveways are consistent with residential uses. 7. In accordance with MN Stat. 462.357, Subp. 6, variances shall be granted for earth sheltered construction as defined in MN Stat. 216C.06, Subd. 14, when in harmony with the zoning ordinance. Not applicable. BE IT FURTHER RESOLVED by The City Council of the City of Lino Lakes hereby denies a variance to allow for a 34 foot wide curb cut/driveway width for 6626 Enid Trail. Adopted by the Council of the City of Lino Lakes this 8th day of July, 2019. The motion for the adoption of the foregoing resolution was introduced by Council Member_______________ and was duly seconded by Council Member ________________ and upon vote being taken thereon, the following voted in favor thereof: 3 The following voted against same: ______________________________ Jeff Reinert, Mayor ATTEST: ________________________ Julianne Bartell, City Clerk 1 CITY COUNCIL AGENDA ITEM 6B STAFF ORIGINATOR: Katie Larsen, City Planner MEETING DATE: July 8, 2019 TOPIC: Consider Resolution No. 19-76 Denying a Variance for Impervious Surface Coverage for 6650 Enid Trail VOTE REQUIRED: 3/5 INTRODUCTION Staff is requesting City Council to consider Resolution No. 19-76 denying a variance for impervious surface coverage for 6650 Enid Trail. Complete Application Date: May 7, 2019 60-Day Review Deadline: July 6, 2019 120-Day Review Deadline: September 4, 2019 Environmental Board Meeting: NA Park Board Meeting: NA Planning & Zoning Board Meeting: June 12, 2019 City Council Work Session: July 1, 2019 City Council Meeting: July 8, 2019 BACKGROUND The property owner of 6650 Enid Trail, Sharper Homes, submitted a Land Use Application for an impervious surface coverage variance. They are requesting an impervious surface coverage of 43.7% be allowed. The City’s Shoreland Management Overlay ordinance allows for a maximum impervious surface coverage of 30%. ANALYSIS Existing Lot and Proposed House Plans Sharper Homes submitted a building permit application in April 2019 to construct a new 5,030 sf home (2,512 sf basement + 2,518 sf main floor) at 6650 Enid Trail in the St. Clair Estates subdivision (Attachment #8). The legal description of the parcel is Lot 3, Block 2, St. Clair Estates. The subdivision is a standard R-1, Single Family Residential zoned subdivision platted in 2017. All lots meet the required 80 foot lot width, 135 foot lot depth and minimum 10,800 square foot lot size. The approved grading plan for this lot includes a 65 foot wide x 55 foot 2 deep house pad with the garage/driveway on the south. The proposed house plan is 64 feet wide x 75 feet deep (this includes a 3 stall garage). The garage/driveway was also flipped to the north side creating more impervious surface. The certificate of survey submitted with the building permit indicated an impervious surface coverage of 43.7% (Attachment #7). Per the survey: Total Lot Area = 10,819 sf House, Porch & Future Shed Area = 3,756 sf Driveway Area to ROW Line = 862 sf Sidewalk Area = 107 sf Total Impervious = 4,725 sf Total Impervious Coverage = 43.7% As defined by both State Statue and City Ordinance, shoreland is land located within 1,000 feet from the ordinary high water level of a lake. The subject site, 6650 Enid Trail, is located within 1,000 feet of Rice Lake and is in the Shoreland Management Overlay district (Attachment #2). The maximum allowed impervious surface is 30%. Shoreland Management The Minnesota Department of Natural Resources (MNDNR) is the state agency that administers Minnesota Administrative Rule, Chapter 6120, Shoreland and Floodplain Management. MNDNR drafted a model Shoreland Management Ordinance that was adopted in 1995 by the City as required by State Statute 103F.201 to 103F.221. The City ordinance is Chapter 1102: Shoreland Management Overlay and the City is responsible for administration of the ordinance. The City and MNDNR work together in reviewing shoreland land use applications such as variances. Per the City’s Shoreland Management Overlay ordinance: Section 1102.01Statutory Authorization and Policy: (1) Statutory authorization. Local government units are required to adopt shoreland management ordinances in M.S. §§ 103F.201 to 103F.221, as it may be amended from time to time. This Shoreland Overlay District chapter is adopted pursuant to these authorizations and policies and the planning and zoning enabling legislation in M.S. Ch. 462, as it may be amended from time to time. (2) Policies. The uncontrolled use of shorelands of the city affects the public health, safety and general welfare not only by contributing to pollution of public waters, but also by impairing the local tax base. Therefore, it is in the best interests of the public health, safety and welfare to provide for the wise subdivision, use and development of shorelands of public waters. The Legislature of Minnesota has delegated responsibility to local governments of the state to regulate the subdivision, use and development of shorelands of public waters and thus preserve and enhance the quality of surface waters, conserve the economic and natural environmental values of shorelands, and provide for the wise use of waters and related land 3 resources. The responsibility for the management of shoreland areas is hereby recognized by the city. Section 1102.03 Definitions. SHORELAND. Land located within 1,000 feet from the ordinary high water level of the lakes and land located within 300 feet from the streams classified in § 1102.05 or the landward extent of a flood plain designated by ordinance on a river or stream, whichever is greater. The limits of shorelands may be reduced whenever the waters involved are bounded by topographic divides which extend landward from the waters for lesser distances and when approved by the Commissioner. Section 1102.07(1)(c)4. Impervious surface coverage of lots must not exceed the following percentages of lot area: NE RD GD R Single-family 30% 30% 30% 30% Two-family/duplex 30% 30% 30% 30% Triplex/quad/townhomes 35% 35% 35% 35% Commercial/industrial 60% 60% 60% 60% The subject site, 6650 Enid Trail, is a single-family lot located within the shoreland overlay of Rice Lake which is classified as a Natural Environment (NE) lake. Therefore, the maximum allowed impervious surface is 30%. It should be noted that even if this lot were not in the shoreland overlay district, the standard R-1 allowed impervious surface coverage is only 40%. The proposed house plan with 43.7% impervious would not meet either of these minimum requirements. As explained in the MNDNR Shoreland & Floodplain Variance Guidance handout (Attachment #6), in the protection of water quality, the management of rainwater on individual lots is one of our most important tasks. As impervious surface coverage increases, the rate and amount of runoff and pollutants entering the public waters increases. The handout also details “Considerations for Findings”, “Range of Outcomes” and “Conditions on Variances”. Applicant’s Narrative See Attachment #3 for the Applicant’s Narrative. The following summarizes the applicant’s variance arguments followed by City’s response in italics. 1. The lot is irregular with an atypically long driveway. The lot is a standard 80’ wide x 135’ deep R-1 lot. The applicant chose to “flip” the house and relocate the driveway to the north causing it to be longer and larger. 2. The applicant proposes a rain garden/infiltration basin in the rear yard, gutter and downspouts and side yard swale. Reasonable conditions such as rain gardens, porous pavers or downspouts could be required only if all variance criteria are met. As detailed below, these variance criteria are not met. 4 3. A paver driveway and sidewalk could reduce the total impervious coverage but the upfront costs make this option the expensive partial solution. As discussed above, these could be reasonable conditions to require only if findings support granting the variance. Staff has the same concerns regarding annual maintenance and costs for any proposed mitigation such as rain gardens, infiltration basin and/or pavers. 4. The Client’s ability to make different choices is limited with regard to floor plan and lot choice due to limited lot selection and health issues. The client prefers this rambler house plan; however, this is not a unique circumstance. The MNDNR handout clearly states unique circumstances do not include physical limitations or personal circumstances created by the property owner such as size of home or design preferences. 5. The Applicant’s ability to market this lot is reduced by nearly half due to lot selection, Sharper’s PlanBook and private covenants. The Applicant noted the proposed house is a custom built rambler; therefore, a custom built rambler or two (2) story dwelling that meets requirements can be designed. The City is not obligated to approve house plans in order to meet private development covenants. Engineering Comments The City Engineer reviewed the revised grading exhibit that was submitted with the variance application (Attachment #4). The revised grading exhibit provided shows a proposed swale along the southerly property line directing water towards the rear lot line, discharging into a small infiltration basin/rain garden located in the northeast corner of the lot. The City Engineer does not recommend the practice of stormwater management for individual lots within a subdivision to accommodate non-compliant site construction for the following reasons: a. Overall functionality and longevity of the storm sewer system (BMP) in question. b. Tracking of potential BMP modification by current or future homeowner an issue. c. Need for private stormwater maintenance agreement recorded against the property in perpetuity. d. Need for additional drainage and utility easements. e. Who is responsible for maintenance? f. Are sureties secured for potential maintenance costs? Minnesota Department of Natural Resources (MNDNR) Comments MNDNR reviewed the variance application and recommends denial due to lack of unique circumstances, not in harmony with intent of ordinance and no practical difficulty (Attachment #5). As noted in their letter and handout and consistent with City ordinance, all variance criteria must be satisfied to approve a variance. Not all criteria are met; therefore, the variance should be denied. 5 Findings of Fact Resolution No. 19-76 details the variance findings of fact. RECOMMENDATION Staff recommended denial of the variance. The Planning & Zoning Board reviewed the variance application on June 12, 2019 and recommended denial with a 6-0 vote. Resolution No. 19-76 denies the variance to allow for 43.7% impervious surface coverage at 6650 Enid Trail. ATTACHMENTS 1. Site Location Map 2. Shoreland Management Overlay District Map 3. Applicant’s Narrative and Supporting Documents 4. WSB Engineering Letter dated June 3, 2019 5. MNDNR Letter dated June 5, 2019 6. MNDNR Variance Guideline Handout 7. Certificate of Survey 8. House Plans 9. Resolution No. 19-76 6650 Enid Trail Disclaimer: Map and parcel data are believed to be accurate, but accuracy is not guaranteed. This is not a legal document and should not be substituted for a title search,appraisal, survey, or for zoning verification. Map Scale 1 inch = 400 feet 6/5/2019 Shoreland Management Overlay District Legend Shoreland District June 5, 2019 Map Powered by DataLink from WSB & Associates 1 in = 600 ft ± Memorandum To: Katie Larsen, City Planner From: Ed Youngquist, WSB & Associates Diane Hankee, City Engineer Date: June 3, 2019 Re: 6650 Enid Trail – Lot Impervious Variance As requested by City Staff, WSB and Associates, Inc. has reviewed the grading revisions for 6650 Enid Trail (Lot 3, Block 2, St. Clair Estates) prepared by Sharper Homes and received on May 7, 2019. The following documents were reviewed: • Project Narrative • Exhibit A - Grading Concept Sketch with Infiltration/Rain Garden Area • Declaration of Building Covenants for St. Clair Estates Project Background The property owner of 6650 Enid Trail, Sharper Homes, submitted a Land Use Application for an impervious surface coverage variance. They are requesting an impervious surface coverage of 43.7% be allowed. The City’s Shoreland Management Overlay ordinance allows for a maximum impervious surface coverage of 30%. The grading exhibit provided shows a proposed swale along the southerly property line directing water towards the rear lot line, discharging into a small infiltration basin located in the northeast corner of the lot. This basin has a proposed emergency overflow of 902.0. The basin discharges northerly – onto adjacent property. Comments: 1. Exhibit A suggests the infiltration basin is sized for 30% impervious lot coverage. The proposed lot coverage is 43.7% impervious. 2. Soils information and stormwater modeling not provided to support infiltration basin design. 3. Infiltration basin design required (cross section, materials, infiltration calcs) 4. The E.O.F. of the basin meets the requirement for separation from low opening. 5. Stormwater maintenance agreement required for the infiltration basin. 6. Drainage and utility easement required if city maintained. 7. Proposed house falls off the constructed house pad – correction needed. 8. Revised grading plan for St. Clair Estates will be required. Conclusions: 1. A stormwater management plan was reviewed and approved for the entire St. Clair Estates development. We do not recommend the practice of stormwater management for individual lots within a subdivision to accommodate non-compliant site construction for the following reasons: a. Overall functionality and longevity of the storm sewer system (BMP) in question. b. Tracking of potential BMP modification by current or future homeowner an issue. c. Need for private stormwater maintenance agreement recorded against the property in perpetuity. d. Need for additional drainage and utility easements.. e. Who is responsible for maintenance? f. Are sureties secured for potential maintenance costs? If you or the applicant has any questions regarding these comments, please contact Ed Youngquist at (763) 287-7167 or eyoungquist@wsbeng.com. Minnesota Department of Natural Resources • Division of Ecological and Water Resources 1200 Warner Road, St. Paul, MN, 55106 Minnesota Department of Natural Resources Ecological and Water Resources Division Central Region Headquarters 1200 Warner Road, St Paul MN 55106 June 5, 2019 Katie Larsen City Planner City of Lino Lakes 600 Town Center Pkwy Lino Lakes, MN 55014-1182 Re: Variance Application for 6650 Enid Trail Dear Ms. Larsen, Thank you for the opportunity to review the impervious surface variance application for 6650 Enid Trail in Lino Lakes, MN. As impervious surface coverage increases, the rate and amount of runoff and pollutants entering public waters increases. When runoff from impervious surface coverage is not addressed, pollution increases and the diversity of aquatic life is reduced. Regulating the amount of impervious surface allowed is important for all areas where development occurs in order to limit the amount and maintain the quality of water that runs off and into lakes, wetland and rivers. In the protection of water quality, the management of rainwater on individual lots is one of the most important tasks local governments can undertake. Variances to shoreland ordinance standards are an important tool for balancing property rights with the public’s right to clean water and healthy habitats. However, variances to shoreland standards should be rare and only for exceptional situations. The variance criteria in Minnesota Statutes must be used for determining these exceptional situations. Note that ALL five variance criteria must be satisfied to approve a variance. These five criteria are: • Is the variance consistent with the comprehensive plan? • Are there unique circumstances to the property not created by the landowner? • Is the variance in harmony with the purposes and intent of the ordinance? • Will the variance, if granted, alter the essential character of the locality? • Does the proposal put property to use in a reasonable manner? 2 I reviewed the application against the five criteria above and below is a summary of how the application compares to three of them that the City may want to review the variance request against. Are there unique circumstances to the property not created by the landowner? Unique circumstances relate to physical characteristics of the land - such as lot dimensions, steep slopes, poor soils, wetlands, and trees. These do not include physical limitations or personal circumstances created by the property owner that prevent compliance with the impervious surface provision, such as size of home or design preferences. The only unique circumstances presented in the application are the minimum house size requirements contained in the declaration of building covenants for St. Clair estates. The covenant states that the minimum house size is 1500 sq. ft. The house that is proposed (excluding garage) is approximately 2650 sq. ft. The 1150 sq. ft. difference between the minimum house footprint allowed in the development covenants, and the footprint selected by the landowner, results in the impervious surface percentage increasing from 33.0% to the requested 43.7% (this assumes the garage and driveway area are unchanged). A smaller house, along with a small change in driveway length or garage location or dimensions, could keep impervious below the 30% maximum impervious allowed. Therefore, there are not unique circumstances that justify the variance. Is the variance in harmony with the purposes and intent of the ordinance? The purpose and intent of restricting impervious surface is to limit the rate and amount of runoff and pollutants entering public waters as development increases. When runoff from impervious surface coverage is not addressed, pollution increases and the diversity of aquatic life is reduced. The variance requested does not seek minimal relief of the maximum allowed impervious surface but is a substantial deviation that is not in harmony with the purposes and intent of the City’s Shoreland Ordinance. The proposed variance for a large increase in impervious surface sets a precedent for other less developed areas of the City. Does the proposal put property to use in a reasonable manner? There are alternative home designs that would allow development to occur on the property without needing a substantial deviation to the allowed impervious surface. The proposed footprint of the selected home is very large for the size of the lot and incorporates a long driveway due to the garage being placed on the left side of the home. When evaluated against the purpose and intent of the City’s Shoreland Ordinance the proposed development does not use the property in a reasonable manner. Recommendation After reviewing the application, it appears that the variance request is being driven by the design preference of the landowner. Legal standards require that variances may only be granted when the applicant establishes that there are “practical difficulties” in complying with the official control. 3 The DNR recommends denial of the variance request to increase the allowed impervious surface to 43.7% of the lot at 6650 Enid Trail, Lino Lakes, MN 55014. As you review this application, we suggest you consider the questions in the attached Impervious Surfaces fact sheet, which was developed to specifically address the statutory criteria as they pertain to impervious surface. State rule requires that final decisions regarding variances be sent to the DNR within 10 days of the decision. The DNR monitors the circumstances and frequency under which local governments approve variances to shoreland ordinances and may take legal action in situations where variances that don’t meet the statutory criteria, and result in negative impacts to shoreland areas and adjacent public waters, are approved. Please notify me within 10 days of the planning commission and city council’s decisions, including the rationale or “findings of fact” and a summary of the public record and testimony. If you have any questions please call me at 651-259-5822. Sincerely, Jason Spiegel North Metro Area Hydrologist Attachment Page 1 of 2 Variance Guidance Series – ISC, Updated 10/10/2012 Shoreland & Floodplain Variance Guidance Series This is one of a series of examples developed as guidance for considering variance requests along lakes and rivers. Consult your local shoreland and floodplain ordinances. Why are impervious surface coverage limits important? In the protection of water quality, the management of rainwater on individual lots is one of our most important tasks. Rainwater that does not infiltrate into the ground or evaporate runs downhill to lakes, wetlands, or rivers. As impervious surface coverage increases, the rate and amount of runoff and pollutants entering public waters increases. When runoff from impervious surface coverage is not addressed, pollution increases and the diversity of aquatic life is reduced. Local governments have limited discretion to deviate from - or grant a variance to - impervious surface limits. They may do so only if all of the variance criteria established in state statutes and their local ordinances are met. In evaluating such requests, local governments must examine the facts, determine whether all statutory and local criteria are satisfied, and develop findings to support the decision. If granted, local governments may impose conditions to protect resources. An example impervious surface variance request, with considerations, is provided below. Example Impervious Surface Variance Request A property owner wishes to build a large lakehome on a conforming lot. The lake lot includes a private driveway with a spur to the neighbor’s lot, which was placed to avoid an adjacent wetland. The building plans for the new construction plus the existing private road spur to the neighbor’s property would exceed the impervious surface limit provision in the local ordinance. Considerations for Findings A good record and findings help keep communities out of lawsuits and help them prevail if they find themselves in one. In evaluating the facts and developing findings for this variance request, all of the following statutory criteria must be satisfied, in addition to any local criteria:  Is the variance in harmony with the purposes and intent of the ordinance? Considering a variance request is a balancing test that requires weighing the need of an individual property owner against the purposes of the shoreland regulations for protecting the public interest. These purposes are derived from Minnesota Shoreland Rules, which established impervious surface caps to prevent excessive runoff from constructed surfaces. Such excessive runoff causes erosion, transport of pollutants to public waters thereby degrading water quality. Considerations: Will deviating from the required limit on this property undermine the purposes and intent of the ordinance? Why or why not? Is it possible to mitigate the consequences of additional impervious surface on-site such that additional runoff will not be produced? Would this mitigation be in harmony with the purposes and intent of the ordinance? Why or why not?  Is the variance consistent with the comprehensive plan? The local comprehensive plan establishes a framework for achieving a community’s vision for the future. Most plans contain goals and policies for protecting natural resources and shorelands, as well as maps that identify areas of high risk or with high ecological value where development should be avoided. The variance request must be considered with these goals and policies in mind. Maps should be consulted to determine if the property is within any areas identified for protection. Considerations: Which goals and policies apply? Is allowing additional impervious surface and runoff consistent with these goals and policies? Why or why not? Impervious Surfaces Page 2 of 2 Variance Guidance Series – ISC, Updated 10/10/2012  Are there unique circumstances to the property not created by the landowner? Unique circumstances relate to physical characteristics of the land - such as lot dimensions, steep slopes, poor soils, wetlands, and trees. These do not include physical limitations or personal circumstances created by the property owner that prevent compliance with the impervious surface provision, such as size of home or design preferences. Consider what distinguishes this property from other shoreland properties to justify why the applicant should be able to deviate from the provision when others must comply. Considerations: What physical characteristics are unique to this property that prevent compliance with the requirement? Were any difficulties in meeting the impervious surface limit created by some action of the applicant? Has the applicant demonstrated no other feasible alternatives exist that would not require a variance, such as increasing the setback to reduce driveway length or reducing the lakehome’s footprint?  Will the variance, if granted, alter the essential character of the locality? Consider the size of the proposed structure, the extent of encroachment, and how it relates to the shoreline and hydrology of the riparian area. A large addition located close to the shoreline can detract from the natural appearance and character of the lake and its riparian areas and degrade water quality by altering topography, drainage, and vegetation in the riparian area, negatively affecting recreational, natural, and economic values. Considerations: Does the variance provide minimal relief or a substantial deviation from the required setback? Does it affect the natural appearance of the shore from the lake? Does it affect the hydrology of the riparian area?  Does the proposal put property to use in a reasonable manner? Examine the reasons that the variance is requested and evaluate them in light of the purposes of the local shoreland ordinance and the public water resource at stake. Since the impervious surface cap is generally intended to reduce runoff to public waters, it may not be appropriate to allow large areas of constructed surfaces so close to the water. Considerations: Has the applicant demonstrated that the proposed construction is reasonable in this location given the sensitive nature of the area and the purposes of the regulations? Why or why not? Note: The last three criteria address practical difficulties. Economic considerations alone cannot create practical difficulties Range of Outcomes Based on the findings, several outcomes can occur:  If the applicant fails to prove that all criteria above are met, then the variance must be denied. For example, the local government could find that the building plans itself created the circumstances necessary for a variance rather than the any unique physical characteristics of the property.  If the applicant demonstrates that all criteria are met, then the variance may be granted. For example, the local government could find that the construction footprint is reasonable, the circumstances are unique given the adjacent wetland, and the minor deviation in the impervious surface coverage does not alter the hydrology of the area (as determined through runoff calculations).  If the variance is granted and the impervious surface in any way alters the hydrology of the area, then conditions may be imposed, such as to increase the structure setback from the lake by 15 feet to reduce the extent of the driveway and minimize the amount of impervious surface coverage over the limit. Conditions on Variances If findings support granting the variance, consideration must be given to the impacts on the public water and the riparian area and appropriate conditions to mitigate them. Conditions must be directly related and roughly proportional to the impacts created by the variance. Several examples are provided below:  Modify construction designs (to minimize impact);  Use permeable pavement systems for walkways, driveways, or parking areas (to reduce effective impervious surface area and infiltrate runoff);  Direct rain gutter discharges away from the public waters and into infiltration basins (to reduce connected impervious coverage to allow additional areas for infiltration);  Preserve and restore shoreline vegetation in a natural state (to intercept and filter runoff coming from structures and driveways); and/or  Increase setbacks from the ordinary high water level (to provide infiltration near public waters). More information at: www.dnr.state.mn.us/waters/watermgmt_section/shoreland/variances.html 1 CITY OF LINO LAKES RESOLUTION NO. 19-76 RESOLUTION DENYING A VARIANCE FOR IMPERVIOUS SURFACE COVERAGE FOR 6650 ENID TRAIL WHEREAS, the City received a land use application for a variance for impervious surface coverage for 6650 Enid Trail; and WHEREAS, the legal description of the property is Lot 3, Block 2, St Clair Estates, Lino Lakes, Anoka County, Minnesota; and WHEREAS, the property is located within the City’s Shoreland Management Overlay District; and WHEREAS, Section 1102.07(1)(c)4 states that impervious surface coverage of lots must not exceed 30% for single-family homes; and WHEREAS, the applicant is proposing to construct a single family home that would create 43.7% impervious surface coverage; and WHEREAS, the Planning & Zoning Board reviewed the variance application on June 12, 2019 and recommended denial with a 6-0 vote. NOW, THEREFORE BE IT RESOLVED by The City Council of The City of Lino Lakes hereby makes the following: FINDINGS OF FACT No variance shall be granted unless it meets all the criteria in paragraphs 1. through 7. below. The City shall make findings regarding compliance with these criteria. 1. The variance shall be in harmony with the general purposes and intent of the ordinance. The general purpose and intent of the Shoreland Management Overlay ordinance is to protect public waters. Per the ordinance Policy statement, the uncontrolled use of shorelands of the city affects the public health, safety and general welfare not only by contributing to pollution of public waters, but also by impairing the local tax base. Therefore, it is in the best interests of the public health, safety and welfare to provide for the wise subdivision, use and development of shorelands of public waters. Impervious surface coverage limits are important because as coverage increases, the rate and amount of runoff and pollutants entering the public waters increases. The variance to allow for 43.7% impervious surface coverage is not harmonious with the general purposes and intent of the ordinance. The variance requested does not seek 2 minimal relief of the maximum allowed impervious surface but is a substantial deviation that is not in harmony with the purposes and intent of the City’s Shoreland Ordinance. 2. The variance shall be consistent with the comprehensive plan. Goal#1 of the Comprehensive Plan’s 2030 Vision for Natural Resources and Amenities is to identify, protect and preserve the desirable natural areas and ecological and aquatic resources of the community. The variance request is not consistent with the comprehensive plan. Increased impervious surface coverage is a detriment to natural areas and water quality. 3. There shall be practical difficulties in complying with the ordinance. “Practical difficulties,” as used in connection with the granting of a variance, means that the property owner proposes to use the property in a reasonable manner not permitted by the ordinance. Economic considerations alone do not constitute practical difficulties. Practical difficulties include, but are not limited to, inadequate access to direct sunlight for solar energy systems. The property owner does not propose to use the property in a reasonable manner. There is no practical difficulty in complying with the required 30% impervious surface coverage requirement. The lot is a standard 10,800 sf, R-1, Single Family Residential that meets lot width, depth and size requirements. 4. The plight of the landowner shall be due to circumstances unique to the property not created by the landowner. The plight of the landowner is not due to circumstances unique to the property. The lot is a standard 10,800 sf, R-1, Single Family Residential parcel that meets lot width, depth and size requirements. There are no unique circumstances to the property causing them to not be able to comply with the ordinance. The plight is created by the landowner’s preference to construct a single family home too large for the parcel. The City is not obligated to approve house plans in order to meet private development covenants. 5. The variance shall not alter the essential character of the locality. The variance will alter the essential character of the locality. The adjacent lots are 12,000 sf + lots with 2,500-2,800 sf homes. Impervious surface coverage on these lots is less than 30%. The subject lot is 10,819 sf with a proposed 5,030 sf house. 6. A variance shall not be granted for any use that is not allowed under the ordinance for property in the zoning district where the subject site is located. The variance will not be granted for any use that is not allowed under the ordinance for property in the zoning district. The property is zoned R-1, Single Family Residential for a residential subdivision and driveways are consistent with residential uses. 3 7. In accordance with MN Stat. 462.357, Subp. 6, variances shall be granted for earth sheltered construction as defined in MN Stat. 216C.06, Subd. 14, when in harmony with the zoning ordinance. Not applicable. BE IT FURTHER RESOLVED by The City Council of the City of Lino Lakes hereby denies a variance to allow for 43.7% impervious surface coverage at 6650 Enid Trail. Adopted by the Council of the City of Lino Lakes this 8th day of July, 2019. The motion for the adoption of the foregoing resolution was introduced by Council Member_______________ and was duly seconded by Council Member ________________ and upon vote being taken thereon, the following voted in favor thereof: The following voted against same: ______________________________ Jeff Reinert, Mayor ATTEST: ________________________ Julianne Bartell, City Clerk 1 CITY COUNCIL AGENDA ITEM 6C STAFF ORIGINATOR: Diane Hankee PE, City Engineer MEETING DATE: July 8 , 2019 TOPIC: Drainage and Utility Easement Vacation i) Consider 2nd Reading of Ordinance No. 08-19, Vacating Right-of-Way, Drainage, and Utility Easements, Saddle Club 4th Addition *Council may vote to dispense with the full reading of the ordinance *Roll call vote is required for adoption of the ordinance ii) Consider Resolution No. 19-82, Approving Summary Publication of Ordinance No. 08-19 VOTE REQUIRED: 4/5 INTRODUCTION Staff is requesting City Council consider the 2nd Reading of Ordinance No. 08-19, vacating right-of-way, drainage, and utility easements lying over, under and across the area described as: “The South 550.00 feet of the East 330.00 feet of the Southwest Quarter of the Southwest Quarter of Section 28, Township 31, Range 22, Anoka County, Minnesota.” BACKGROUND Saddle Club is a PUD residential subdivision located southeast of the intersection of Old Birch Street and Pheasant Run South. The applicant is requesting this right-of-way, drainage, and utility easements be vacated to remove underlying easements concurrent to the Saddle Club 4th Addition final plat. Revised easements will be re-dedicated on the final plat of Saddle Club 4th Addition. The City Council has approved similar vacations with previous final plats with past developments. The Easement Vacation Description Sketch prepared by E.G. Rud & Sons. Inc. on February 26, 2019 detailing the proposed right-of-way and drainage and utility area to be vacated is enclosed. 2 RECOMMENDATION Staff is recommending approval of the 2nd Reading of Ordinance No. 08-19 Vacating Right-of- Way, Drainage, and Utility Easements, Saddle Club 4th Addition and approval of Resolution No. 19-82, Approving Summary of Publication of Ordinance 08-19. ATTACHMENTS 1. Ordinance No. 08-19 2. Easement Vacation Description Sketch 3. Resolution 19-82 1 1st Reading: 6/24/2019 Publication: 2nd Reading: 7/8/2019 Effective: CITY OF LINO LAKES ORDINANCE NO. 08-19 ORDINANCE VACATING RIGHT-OF-WAY, DRAINAGE, AND UTILITY EASEMENT (Saddle Club Fourth Addition) The City Council of Lino Lakes ordains: Section 1: Findings of Fact 1. The City Council of Lino Lakes has determined to vacate the Right-of-Way, Drainage and Utility Easement dedicated over, under, and across the area described as: “The South 550.00 feet of the East 330.00 feet of the Southwest Quarter of the Southwest Quarter of Section 28, Township 31, Range 22, Anoka County, Minnesota.”; Within the Saddle Club Fourth Addition, as shown in Exhibit A; and 2. A public hearing was held on June 24, 2019 before the City Council in the City Hall Council Chambers after due published and posted notice had been given and reasonable attempts were made to give personal notice to all affected property owners, and all persons interested were given an opportunity to be heard; and 3. It appears to be in the best interest of the City to vacate such right-of-way, drainage, and utility easements; and 4. The Right-of-Way, Drainage, and Utility Easement Vacation shall be recorded through Anoka County Recorder’s Office; and 5. Four-fifths of all members of the City Council concur with this ordinance. Section 2: Easement Vacated The Right-of-Way, Drainage and Utility Easement described herein is hereby vacated. 2 Section 3: Effect This ordinance shall be in force and effect from and after its passage and publication according to the Lino Lakes City Charter and upon filing of the final plat for Saddle Club Fourth Addition. Adopted by the Lino Lakes City Council this 8th day of July, 2019. The motion for the adoption of the foregoing ordinance was introduced by Council Member_____________and was duly seconded by Council Member ___________ and upon vote being taken thereon, the following voted in favor thereof: The following voted against same: ____________________________ Jeff Reinert, Mayor ATTEST: ________________________ Julianne Bartell, City Clerk CITY OF LINO LAKES RESOLUTION NO. 19-82 APPROVING A SUMMARY OF ORDINANCE NO. 08-19 FOR PUBLICATION WHEREAS, the City Council approved Ordinance No. 08-19, vacating right-of-way and drainage & utility easement on the area described as “The South 550.00 feet of the East 330.00 feet of the Southwest Quarter of the Southwest Quarter of Section 28, Township 31, Range 22, Anoka County, Minnesota.” and WHEREAS, the City Council approved the first reading on June 24, 2019, and the second reading and final passage on July 8 , 2019; and WHEREAS, Ordinance No. 08-19 is lengthy and MN statute 412.191 allows the city to publish a summary of an ordinance, and WHEREAS, the City Council has determined that the summary clearly informs the public of the intent and effect of the ordinance, and WHEREAS, the publication in the official newspaper will include a notice that a full printed copy of the ordinance is available at City Hall. NOW, THEREFORE, BE IT FURTHER RESOLVED by The City Council of The City of Lino Lakes, Minnesota that the City Council approves the summary in Attachment A for publication according to state law and the City Charter. Adopted by the Council of the City of Lino Lakes this 8th day of July, 2019. The motion for the adoption of the foregoing resolution was introduced by Council Member _____________ and was duly seconded by Council Member _____________ and upon vote being taken thereon, the following voted in favor thereof: The following voted against same: _____________________ Jeff Reinert, Mayor ATTEST: ________________________ Julianne Bartell, City Clerk ATTACHMENT A CITY OF LINO LAKES SUMMARY OF ORDINANCE NO. 08-19 AN ORDINANCE VACATING RIGHT-OF-WAY, DRAINAGE, AND UTILITY EASEMENT (Saddle Club Fourth Addition) Section 1: Findings The City Council of Lino Lakes has determined to vacate right-of-way and a portion of the drainage and utility easement dedicated on the area described as “The South 550.00 feet of the East 330.00 feet of the Southwest Quarter of the Southwest Quarter of Section 28, Township 31, Range 22, Anoka County, Minnesota.” as shown in Exhibit A; and A public hearing was held on June 24, 2019, before the City Council in the City Hall Council Chambers after due published and posted notice had been given and a reasonable attempts were made to give personal notice to all affected property owners, and all persons interested were given an opportunity to be heard; and Section 3: Effect This ordinance shall be in force and effect from and after its passage and publication according to the Lino Lakes City Charter and upon recording of the Right-of-Way and Drainage and Utility Easement Vacation. Passed by the Lino Lakes City Council on July 8, 2019. This is a summary of the adopted ordinance. A full printed copy of the ordinance is available at City Hall. CITY COUNCIL AGENDA ITEM 6D STAFF ORIGINATOR: Michael Grochala, Community Development Director MEETING DATE: July 8, 2019 TOPIC: Consider Resolution No. 19-85, Approving Tax Increment Financing Plan for District 1-13. VOTE REQUIRED: 3/5 INTRODUCTION Staff is requesting City Council consideration to approve the Tax Increment Financing Plan for District 1-13. BACKGROUND Lyngblomsten Senior Housing, Inc. is proposing to develop a 20 acre area located in the northwest quadrant of Hodgson Road and County Road J as a senior living community. The City Council approved the Preliminary Plat/PUD Development Stage Plan for the project on April 8, 2019. The project is proposed to include 20 rental cottage homes, and a senior rental housing building consisting of both independent and assisted living units. A skilled nursing facility is also planned as part of the campus. The project, as proposed, addresses a number of City goals related to this area and will significantly reshape the NW quadrant of the 49/J intersection. The public benefits include: • Demolition and consolidation of existing underutilized properties including removal of four existing buildings. • Consolidation of multiple vacant or underutilized parcels and development of new commercial pad sites generating new commercial tax base. • Provides new right-of-way for both proposed and future County road improvements for both Hodgson and County Road J. • Constructs new turn lanes on Hodgson Road including the southbound approach to County Road J. • New public street improvements and consolidation of access points to Hodgson and CRJ to improve circulation, capacity and safety along the corridor. • Construction of nearly a ½ mile of new trail linking residents west of Hodgson Road with the existing trail system to the east. • Relocate and bury existing power lines running along the corridor. • Catalyst for addition roadway improvements by Anoka County and Ramsey County including striping and turn lane improvements on County Road J to increase capacity of roadway. • Extension of public water and sanitary sewer to areas currently without service. Will include main lines to service areas east of Hodgson Road. • Extension of trunk water main through development area shortening remaining looping needs for southwest area. • Creation of approximately 130 FTE jobs with average hourly wages of $22.50/hour. • Provision of variety of senior housing options not previously provided for in the City by a well-established twin city care provider. • The applicant will still be subject to all city fees including building permits, trunk utility and park dedication requirements. The developer has submitted an application for public assistance to offset land, infrastructure, and construction costs related to the senior building. The proposed public assistance would be provided in the form of Tax Increment Financing (TIF). The establishment of a Tax Increment Financing (TIF) District requires the preparation of a TIF plan and review by both the school district and county. No comments were received from Centennial School District or Anoka County. Additionally, in accordance with Minnesota Statutes the plan requires that at least 20% of the units will be restricted for persons or families with incomes at or below 50% of the area median income. A public hearing must be held prior to City Council consideration to establish a district. Tax Increment Financing (TIF) Plan The TIF plan provides the framework for the use of tax increment for development purposes. The plan includes the statutory authorization, purpose and objectives of the district. The City/EDA are proposing to establish a Housing District. The maximum duration of a housing district is 26 years from the date of receipt of the first increment. The TIF plan is proposing a maximum duration of 9 years. The primarily purpose of the district is to aid in the construction of the proposed senior housing facility. Tax increment is intended to be used to offset costs related to land, building and infrastructure costs. The plan includes the City’s findings that, in our opinion, due to extraordinary costs associated with the project including land assembly, infrastructure and building, the project would not be reasonably expected to occur solely through private investment. The estimated public costs eligible for reimbursement from tax increment total $3,701,133. Tax increment revenues generated from the development are expected to equal this amount. Approval of the plan and determination of eligible costs does not obligate the City/EDA to any specific district duration or amount of assistance. The determination of any specific assistance package will be part of a separate contract for development. The EDA will be considering approval of a Contract for Private Development on July 22, 2019. Representatives from BakerTilly, the City’s financial consultant, and Kennedy & Graven, the City’s Development Counsel will be present at the meeting to address any City Council questions. RECOMMENDATION Staff recommends approval of Resolution No. 19-85. ATTACHMENTS 1. Resolution No. 19-85 2. Tax Increment District Map 3. Tax Increment Financing Plan for District 1-13 Error! Unknown document property name. CITY OF LINO LAKES, MINNESOTA RESOLUTION NO. 19-85 RESOLUTION APPROVING TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING (HOUSING) DISTRICT NO. 1-13 WHEREAS, the City of Lino Lakes, Minnesota (the “City”) and the Lino Lakes Economic Development Authority (the “Authority”) have established, and the Authority administers, Development District No. 1 (the “Development District”) located within the City and have caused to be created a Development Plan (the “Development Plan”) therefor, pursuant to Minnesota Statutes, Sections 469.090 through 469.1082, as amended (the “EDA Act”); and WHEREAS, within the Development District the City and the Authority have created certain tax increment financing districts pursuant to Minnesota Statutes, Sections 469.174 through 469.1794, as amended (the “TIF Act”); and WHEREAS, the City and the Authority have determined to approve a tax increment financing plan (the “TIF Plan”) relating to the creation of a new tax increment financing district within the Development District designated as the Tax Increment Financing (Housing) District No. 1-13 (the “TIF District”), all as described in a plan document presented to the City Council of the City (the “City Council”) on the date hereof; and WHEREAS, pursuant to Section 469.175, subd. 2a, of the TIF Act, the notice of public hearing for the creation of the TIF Plan was provided to the county commissioner who represents the area included in the TIF District at least 30 days before the publication of the notice; and WHEREAS, pursuant to Section 469.175, subd. 2 of the TIF Act, the proposed TIF Plan and the estimates of the fiscal and economic implications of the TIF Plan were presented to the School Board of Independent School District No. 12 and to the County Board of Commissioners of Anoka County, Minnesota; and WHEREAS, on the date hereof, the City Council conducted a public hearing relating to the TIF Plan and the establishment of the TIF District, at the views of all interested parties were heard at the public hearing; and WHEREAS, the City Council has reviewed the contents of the TIF Plan; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lino Lakes, Minnesota that: Section 1. Findings; TIF District. 1.01. It is found and determined that it is necessary and desirable for the sound and orderly development of the Development District, and for the protection and preservation of the public health, safety, and general welfare, that the authority of the TIF Act be exercised by the City to provide public financial assistance to the TIF District and the Development District. 1.02. It is further found and determined, and it is the reasoned opinion of the City, that the development proposed in the TIF Plan could not reasonably be expected to occur solely through private investment within the reasonably foreseeable future. Error! Unknown document property name. 2 1.03. The proposed development to be financed in part through tax increment financing will provide the City with affordable housing for seniors. 1.04. The TIF Plan conforms to the general plan for development of the City as a whole. 1.05. The TIF Plan will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development of the TIF District and the Development District by private enterprise. 1.06. The TIF District is a housing district under Section 469.174, subdivision 11 of the TIF Act. 1.07. The reasons and facts supporting all the above findings are set forth in the TIF Plan and are incorporated herein by reference. The City Council has also relied upon the reports and recommendations of its staff and consultants, as well as the personal knowledge of members of the City Council, in reaching its conclusions regarding the TIF Plan. Section 2. Public Purpose. The adoption of the TIF Plan conforms in all respects to the requirements of the TIF Act. The TIF Plan will help facilitate an affordable housing development for seniors. The City expressly finds that the tax increment assistance is provided solely to make the development financially feasible and thus produce the public benefits described. Therefore, the City finds that the public benefits of the TIF Plan exceed any private benefits. Section 3. Approvals; Further Proceedings 3.01. The TIF Plan for the TIF District is hereby approved and adopted in substantially the form on file at City Hall. 3.02. The City Council hereby transmits the TIF Plan to the Board of Commissioners of the Authority (the “Board”) and recommends that the Board adopt the TIF Plan. 3.03. Upon approval of the TIF Plan by the Board, the Authority is authorized and directed to file a request for certification of the TIF District with the County Auditor of Anoka County, Minnesota and to file a copy of TIF Plan with the Minnesota Commissioner of Revenue as required by the TIF Act. Approved by the City Council of the City of Lino Lakes, Minnesota this 8th day of July, 2019. 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MN 55427FAX (763) 544-0531 PH (763) 544-7129DateRegistration NumberCheckDrawnDate:CommI hereby certify that this plan, specification or report was prepared byme or under my direct supervision and that I am a duly Licensedunder the laws of the State ofRevisionsDescription Date NumScale:North6,7(3/$129(5$//'$9,'$5(<;;;;;;;;;;;%-''$5 &0,11(627$352)(66,21$/(1*,1((5/<1*%/2067(11415 ALMOND AVE WST. PAUL, MN 55108HODGSON ROADLINO LAKES, MN 55014/<1*%/2067(16(1,25&20081,7,(66,*1$*(.(<127(60Q087&'5[$0Q087&'5[%6,0,/$5720Q087&'5[3$5.,1*&127(6 5()(5726+((7&6,7(3/$11257+)25127(6 5()(5726+((7&*5$',1*$1''5$,1$*(3/$11257+)25*(1(5$/127(6/(*(1'5()(5(1&(.(<726,7('(7$,/6'(7$,/,'180%(5723'(7$,/6+((7180%(5%27720352326('&21&5(7(:$/.352326('&21&5(7(6/$%352326('/,*+7'87<%,780,12863$9(0(17352326('0(',80'87<%,780,12863$9(0(17352326('+($9<'87<%,780,12863$9(0(17352326('75$)),&&21752/6,*16,*1$*(.(<127(352326('%2//$5'3$,17('$&&(66,%/(6<0%2/352326('0$1+2/(0+352326('&$7&+%$6,1&%352326(')/$5('(1'6(&7,21)(6352326('+<'5$17+<'352326('*$7(9$/9(*9352326('3267,1',&$7259$/9(3,9352326(')/$*32/(5()(572$5&+,7(&785$/3/$16352326('%8,/',1*672235()(572$5&+,7(&785$/3/$16352326('/,*+732/(5()(572(/(&75,&$/3/$163523(57</,1($1C2.111257+($673$5.,1*727$/67$//6 $&&(66,%/(67$//65(48,5(' $&&(66,%/(67$//63529,'(' 1257+:(673$5.,1*727$/67$//6 $&&(66,%/(67$//65(48,5(' $&&(66,%/(67$//63529,'(' &/8%+286(3$5.,1*727$/67$//6 $&&(66,%/(67$//65(48,5(' $&&(66,%/(67$//63529,'(' 5(67$85$173$5.,1*727$/67$//6 $&&(66,%/(67$//65(48,5(' $&&(66,%/(67$//63529,'(' 6287+3$5.,1*727$/67$//6 $&&(66,%/(67$//65(48,5(' $&&(66,%/(67$//63529,'(' 0$,13$5.,1*727$/67$//6 $&&(66,%/(67$//65(48,5(' $&&(66,%/(67$//63529,'(' 6,7(67$7,67,&6030 60 City of Lino Lakes, Minnesota Lino Lakes Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing (Housing) District No. 1-13 (Lyngblomsten Senior Housing Project) Within Development District No. 1 Dated: June 24, 2019 Public Hearing Scheduled: July 8, 2019 Approval by City Council: July 8, 2019 Lino Lakes Economic Development Authority, Minnesota TABLE OF CONTENTS Section Page(s) A. Definitions ...................................................................................................................... 1 B. Statutory Authorization ................................................................................................... 1 C. Statement of Need and Public Purpose ......................................................................... 1 D. Statement of Objectives ................................................................................................. 1 E. Designation of Tax Increment Financing District as a Housing District .......................... 2 F. Duration of the TIF District ............................................................................................. 3 G. Property to be Included in the TIF District ...................................................................... 3 H. Property to be Acquired in the TIF District ..................................................................... 3 I. Specific Development Expected to Occur Within the TIF District ................................... 3 J. Findings and Need for Tax Increment Financing ........................................................... 4 K. Estimated Public Costs .................................................................................................. 4 L. Estimated Sources of Revenue ..................................................................................... 5 M. Estimated Amount of Bonded Indebtedness .................................................................. 5 N. Original Net Tax Capacity .............................................................................................. 5 O. Original Tax Capacity Rate ............................................................................................ 6 P. Projected Retained Captured Net Tax Capacity and Projected Tax Increment ............. 6 Q. Use of Tax Increment ..................................................................................................... 7 R. Excess Tax Increment ................................................................................................... 8 S. Tax Increment Pooling and the Five-Year Rule ............................................................. 8 T. Limitation on Administrative Expenses .......................................................................... 8 U. Limitation on Property Not Subject to Improvements - Four Year Rule ......................... 8 V. Estimated Impact on Other Taxing Jurisdictions ............................................................ 9 W. Prior Planned Improvements ......................................................................................... 9 X. Development Agreements ............................................................................................. 10 Y. Assessment Agreements ............................................................................................... 10 Z. Modifications of the Tax Increment Financing Plan ....................................................... 10 AA. Administration of the Tax Increment Financing Plan ...................................................... 10 AB. Filing TIF Plan, Financial Reporting and Disclosure Requirements ............................... 11 Map of the Tax Increment Financing District and Development District .............................................. EXHIBIT I TIF District Assumptions Report ......................................................................................................... EXHIBIT II Projected Tax Increment Report ......................................................................................................... EXHIBIT III Estimated Impact on Other Taxing Jurisdictions Report ..................................................................... EXHIBIT IV Lino Lakes Economic Development Authority, Minnesota BAKER TILLY Page 1 Section A Definitions The terms defined in this section have the meanings given herein, unless the context in which they are used indicates a different meaning: "Authority" means the Lino Lakes Economic Development Authority. “City" means the City of Lino Lakes, Minnesota; also referred to as a "Municipality". "City Council" means the City Council of the City; also referred to as the "Governing Body". "County" means Anoka County, Minnesota. "Development District" means Development District No. 1 in the City, which is described in the corresponding Development Program. "Development Program" means the Development Program for the Development District. "Project Area" means the geographic area of the Development District. "School District" means Independent School District No. 12, Minnesota. "State" means the State of Minnesota. "TIF Act" means Minnesota Statutes, Sections 469.174 through 469.1794, both inclusive. "TIF District" means Tax Increment Financing (Housing) District No. 1-13. "TIF Plan" means the tax increment financing plan for the TIF District (this document). Section B Statutory Authorization The Development District Act authorizes the City and Authority, upon certain public purpose findings by the City Council, to establish and designate development districts within the City and to develop and administer development programs therefore to meet the needs and accomplish the public purposes specified in Section C. In accordance with the purposes set forth in Section 469.124 of the Development District Act, the City Council and Authority have established the Development District comprising the area described in Section E and have adopted this Development Program. Section C Statement of Need and Public Purpose The City Council and Authority have determined that there is a need for the City to take certain actions they deem necessary in order to encourage, ensure and facilitate development and redevelopment by the private sector of underutilized, inappropriately used and unused land located within the corporate limits of the City. Such actions are necessary in order to provide additional employment opportunities for residents of the City and the surrounding area; to improve the tax base of the City, the County and the School District, thereby enabling them to better provide needed public services; and to improve the general economy of the City, the County and the State. Section D Statement of Objectives The Authority seeks to achieve the following objectives through the establishment of TIF District No. 1-13: Lino Lakes Economic Development Authority, Minnesota BAKER TILLY Page 2 1. redevelop blighted areas as identified 2. provide housing opportunities within the community 3. provide employment opportunities within the community. 4. improve the tax base of Lino Lakes and the general economy of the City and State; 5. implement relevant portions of the Comprehensive Plan. The Authority’s specific purpose in establishing TIF District No. 1-13 is to aid in the construction of a senior living care campus comprising of independent living, assisted living, memory care, skilled care and detached townhomes of which the intended age for occupants is 55+. The Authority intends to use increment generated by the new development to assist with financing a portion of the extraordinary onsite and offsite costs directly related to the senior care building including acquisition, underground and surface parking, streets, public utilities, and public improvements to gain access to the site. Section E Designation of Tax Increment Financing District as a Housing District Pursuant to the TIF Act, the City seeks to create Tax Increment Financing (Housing) District No. 1-13 and adopt a TIF Plan for the TIF District. The City will review the TIF Plan prior to City adoption. TIF District No. 1-13 is a housing district. Housing districts are a type of tax increment financing district that consist of a project intended for occupancy, in part, by persons or families of low and moderate income. Low and moderate income is defined in federal, state, and municipal legislation. A project does not qualify if more than 20% of the square footage of buildings that receive assistance from tax increments consist of commercial, retail or other nonresidential use. In addition, housing districts are subject to various income limitations and requirements for residential property. For owner occupied residential property, 95% of the housing units must be initially purchased and occupied by individuals whose family income is less than or equal to the income requirements for qualified mortgage bond projects under section 143(f) of the Internal Revenue Code. For residential rental property, the property must satisfy the income requirements for a qualified residential rental project as defined in section 142(d) of the Internal Revenue Code. The TIF District meets the above qualifications for these reasons: 1. The planned improvements consist of the following: a. Approximately 150 total units, for which the following will apply: o 150-unit senior housing building with at least 20% (30) of the rental units will be occupied by persons with incomes no greater than 50% of county median income 2. At least 80% of the proposed development will be used for residential purposes. 3. The City will require in the development agreement that the income limitations for the rental units in the senior building will apply for the duration of the TIF District. Tax increments derived from a housing district must be used solely to finance the cost of housing projects as defined in section 469.174, subd. II and 469.176 of the TIF Act. The cost of public improvements directly related to the housing projects and the allocated administrative expenses of the City may be included in the cost of a housing project. The City anticipates using tax increment revenues to finance a portion of the extraordinary costs associated with providing the affordable housing units. Lino Lakes Economic Development Authority, Minnesota BAKER TILLY Page 3 Section F Duration of the TIF District Housing districts may remain in existence 25 years from the date of receipt of the first tax increment. Modifications of this plan (see Section Z) shall not extend these limitations. Pursuant to Minnesota Statutes, Section 469.175, subd. 1(b), the Authority specifies 2022 as the first year in which it elects to receive tax increment from the TIF District, which is no later than four years following the year of approval of the TIF District. Thus, the Authority may collect increment from the district through December 31, 2047; however, the Authority anticipates decertifying the TIF District as early as possible with a projected maximum term of 8.5 years. All tax increments from taxes payable in the year the TIF District is decertified shall be paid to the Authority. Section G Property to be Included in the TIF District The TIF District comprises 1 parcel that contains an underutilized building that will be demolished prior to development. The total area of the TIF district also includes adjacent streets and right-of-way located within the Project Area and are described below. A map showing the location of the TIF District is shown in Exhibit I. Parcel Number Legal Description 31-31-22-43-0018 LOT 4 AUDITORS SUBDIVISION NO 107 TOG/W ELY 50 FT OF LOT 22 SD AUD SUB LYG BET WLY EXTNS OF N & S LINES OF SD LOT 4 It is anticipated the parcel listed above will be replatted prior to development and a portion of the property will be included within the boundaries of the TIF District. The area encompassed by the TIF District shall also include all street or utility right-of-ways located upon or adjacent to the property described above, as illustrated in the boundary map included in Exhibit I. Section H Property to be Acquired in the TIF District The Authority may acquire and sell any or all of the property located within the TIF District; however, the Authority does not anticipate acquiring any such property at this time. Section I Specific Development Expected to Occur Within the TIF District The proposed project includes the development of property within the City to include a senior care campus with independent living, assisted living, memory care and skilled care units in one building with an underground parking structure. The skilled care portion of the building is a non-residential use that will be less than 20% of the square footage of the entire building. In addition to the senior building will be the construction of 20 detached townhomes and community clubhouse. In order to comply with Minnesota Statutes for designation of a Housing TIF District, at least 20% of the units will be restricted for persons or families with incomes at or below 50% of area median income. The Authority has identified significant costs related to construction of the project including acquisition, site development, infrastructure and public improvements that are deemed necessary for the project to proceed. The Authority anticipates providing financial assistance for the costs associated with the provision of affordable housing, acquisition and redevelopment of the entire property site and also to finance certain public improvements directly related to the housing development project. The Authority may also use available tax increment revenues to finance a portion of the eligible related administrative expenses. Demolition and subsequent construction of the new development on the project site is projected to start in late 2019. The project is expected to be fully constructed by December 31, 2020 and be 100% assessed and on the tax rolls as of January 2, 2021 for taxes payable 2022. Lino Lakes Economic Development Authority, Minnesota BAKER TILLY Page 4 Section J Findings and Need for Tax Increment Financing In establishing the TIF District, the City makes the following findings: (1) The TIF District qualifies as a housing district. See Section G of this document for the reasons and facts supporting this finding. (2) The proposed development, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future. The proposed development is expected to consist of approximately 150 senior housing units comprising of independent living, assisted living and memory care units. The City’s finding that the proposed development would be unlikely to occur solely through private investment within the reasonably foreseeable future is based on an analysis of the project pro forma and other materials submitted to the City by the developer. These documents have indicated that due to the significant costs associated with assembling the project site and construction of the senior housing project will result in returns that are not sufficient to support development, thereby making this housing development infeasible without public assistance. There are significant development costs associated with acquisition, demolition, installation of new infrastructure and structured parking. Therefore, the developer has indicated in communications with the City and submitted financial data that the development as proposed would not move forward without tax increment assistance. (3) The TIF Plan conforms to the general plan for development or redevelopment of the City as a whole. The reasons and facts supporting this finding are that the City Council of the City has found the TIF plan consistent with the general plan for development of the city as a whole and will generally complement and serve to implement policies adopted in the City's comprehensive plan. (4) The TIF Plan will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development of the Project Area by private enterprise. Through the implementation of the TIF Plan, the City will provide an impetus for a new senior care campus, of which a portion of the units will be affordable, which complements the overall housing needs of the City and helps support other private types of development by providing a range of housing opportunities for residents and workers within the City. Section K Estimated Public Costs The estimated public costs of the TIF District are listed below. Such costs are eligible for reimbursement from tax increments of the TIF District. Land/Building acquisition 888,000 Site Improvements/Preparation costs 2,330,000 Utilities 0 Other Housing Improvements 298,075 Administrative expenses 185,058 Subtotal Interest expenses 0 Total 3,701,133 Lino Lakes Economic Development Authority, Minnesota BAKER TILLY Page 5 The Authority anticipates using tax increment to the extent available to finance affordable housing costs, site improvement/preparation costs, public improvement infrastructure costs, land acquisition and related administrative expenses, and other TIF-eligible expenditures as deemed necessary and related to redevelopment of the project site. The Authority reserves the right to administratively adjust the amount of any of the items listed above or to incorporate additional eligible items, so long as the total estimated public cost ($3,701,133) is not increased. The Authority also reserves the right to fund any of the identified costs with any other legally available revenues, such as grants and/or loans, but anticipates that such costs will be primarily financed with tax increments. Section L Estimated Sources of Revenue Tax Increment revenue 3,701,133 Interest on invested funds 0 Land Sale Proceeds 0 Other 0 Total 3,701,133 The Authority anticipates providing financial assistance on a pay-as-you-go basis for acquisition and site improvement and infrastructure costs, as well as other TIF-eligible expenses related to the proposed development. As tax increments are collected from the TIF District in future years, a portion of these taxes will be used by the Authority to reimburse the developer/owner for public costs incurred (see Section K). The Authority reserves the right to finance any or all public costs of the TIF District using pay-as-you-go assistance, internal funding, general obligation or revenue debt, or any other financing mechanism authorized by law. The Authority also reserves the right to use other sources of revenue legally applicable to the Project Area to pay for such costs including, but not limited to, special assessments, utility revenues, federal or state funds, and investment income. Section M Estimated Amount of Bonded Indebtedness The maximum principal amount of bonds (as defined in the TIF Act) secured in whole or part with tax increment from the TIF District is $3,701,133. The Authority currently plans to finance the improvement costs in the form of a pay-as- you go revenue note but reserves the right to issue bonds in any form, including without limitation any interfund loan with interest not to exceed the maximum permitted under Section 469.178, subd. 7 of the TIF Act. Section N Original Net Tax Capacity The County Auditor shall certify the original net tax capacity of the TIF District. This value will be equal to the total net tax capacity of all property in the TIF District as certified by the State Commissioner of Revenue. For districts certified between January 1 and June 30, inclusive, this value is based on the previous assessment year. For districts certified between July 1 and December 31, inclusive, this value is based on the current assessment year. The Estimated Market Value of all property within the TIF District as of January 2, 2018, for taxes payable in 2019, is $908,400. Upon establishment of the district and subsequent reclassification of property, the estimated original net tax capacity of the TIF District is expected to be $11,355. This assumes the property is classified as residential rental with a classification rate of 1.25%. Each year the County Auditor shall certify the amount that the original net tax capacity has increased or decreased as a result of: (1) changes in the tax-exempt status of property; Lino Lakes Economic Development Authority, Minnesota BAKER TILLY Page 6 (2) reductions or enlargements of the geographic area of the TIF District; (3) changes due to stipulation agreements or abatements; or (4) changes in property classification rates. Section O Original Tax Capacity Rate The County Auditor shall also certify the original tax capacity rate of the TIF District. This rate shall be the sum of all local tax rates that apply to property in the TIF District. This rate shall be for the same taxes payable year as the original net tax capacity. In future years, the amount of tax increment generated by the TIF District will be calculated using the lesser of (a) the sum of the current local tax rates at that time or (b) the original tax capacity rate of the TIF District. The sum of all local tax rates that apply to property in the TIF District, for taxes levied in 2019 and payable in 2020, is not available at the time off drafting of this document. The County Auditor shall certify the amount for taxes payable 2020 as the original tax capacity rate of the TIF District once available assuming the request for certification is made between July 1, 2019 and June 30, 2020. For purposes of estimating the tax increment generated by the TIF District, the sum of the local tax rates for taxes levied in 2018 and payable in 2019, is 117.574% as shown below. 2018/2019 Taxing Jurisdiction Local Tax Rate City of Lino Lakes 41.817% Anoka County 34.473% ISD #12 35.984% Other 5.300% Total 117.574% Section P Projected Retained Captured Net Tax Capacity and Projected Tax Increment The Authority anticipates that the project will begin construction in fall 2019 and be 100% completed by December 31, 2020, creating a total tax capacity for TIF District No. 1-13 of $362,388 as of January 2, 2021. The captured tax capacity as of that date is estimated to be $351,033 and the first year of tax increment is estimated to be $390,675 payable in 2019. A complete schedule of estimated tax increment from the TIF District is shown in Exhibit III. The estimates shown in this TIF plan assume that residential rental class rates remain at 1.25% of the estimated taxable value and include 0% annual increases in market values. Each year the County Auditor shall determine the current net tax capacity of all property in the TIF District. To the extent that this total exceeds the original net tax capacity, the difference shall be known as the captured net tax capacity of the TIF District. The County Auditor shall certify to the City the amount of captured net tax capacity each year. The City may choose to retain any or all of this amount. It is the City's intention to retain 100% of the captured net tax capacity of the TIF District. Such amount shall be known as the retained captured net tax capacity of the TIF District. Lino Lakes Economic Development Authority, Minnesota BAKER TILLY Page 7 Exhibit II gives a listing of the various information and assumptions used in preparing a number of the exhibits contained in this TIF Plan, including Exhibit III which shows the projected tax increment generated over the anticipated life of the TIF District. Section Q Use of Tax Increment Each year the County Treasurer shall deduct 0.36% of the annual tax increment generated by the TIF District and pay such amount to the State's General Fund. Such amounts will be appropriated to the State Auditor for the cost of financial reporting and auditing of tax increment financing information throughout the state. Exhibit III shows the projected deduction for this purpose over the anticipated life of the TIF District. The City has determined that it will use 100% of the remaining tax increment generated by the TIF District for any of the following purposes: (1) Pay for the estimated public costs of the TIF District (see Section K) and County administrative costs associated with the TIF District (see Section T); (2) pay principal and interest on one or more pay-as-you-go notes, tax increment bonds or other bonds issued to finance the estimated public costs of the TIF District; (3) accumulate a reserve securing the payment of tax increment bonds or other bonds issued to finance the estimated public costs of the TIF District; (4) pay all or a portion of the county road costs as may be required by the County Board under M.S. Section 469.175, Subdivision 1a; or (5) return excess tax increments to the County Auditor for redistribution to the City, County and School District. Tax increments from property located in one county must be expended for the direct and primary benefit of a project located within that county, unless the county board involved waives this requirement. Tax increments shall not be used to circumvent levy limitations applicable to the City. Tax increment derived from the TIF District must be used solely to finance the cost of housing projects (including administrative expenses and public improvement costs) as defined in Section 469.174, Subdivision 11 of the Tax Increment Act and subject to the requirements set forth in Section 469.1761 of the Tax Increment Act. Tax increment shall not be used to finance the acquisition, construction, renovation, operation, or maintenance of a building to be used primarily and regularly for conducting the business of a municipality, county, school district, or any other local unit of government or the State or federal government. Further, tax increments may not be used to finance: a commons area used as a public park; facilities used for social or recreational purposes (whether public or private); or publicly-owned facilities used for conference purposes; provided that tax increment may be used for a privately owned conference facility, and for parking structures whether public or privately owned and whether or not they are ancillary to one of the otherwise prohibited uses described above. If there exists any type of agreement or arrangement providing for the developer, or other beneficiary of assistance, to repay all or a portion of the assistance that was paid or financed with tax increments, such payments shall be subject to all of the restrictions imposed on the use of tax increments. Assistance includes sale of property at less than the cost of acquisition or fair market value, grants, ground or other leases at less then fair market rent, interest rate subsidies, utility service connections, roads, or other similar assistance that would otherwise be paid for by the developer or beneficiary. Lino Lakes Economic Development Authority, Minnesota BAKER TILLY Page 8 Section R Excess Tax Increment Beginning with the sixth year after certification of the TIF District, any year in which the tax increments from the TIF District exceed the amount necessary to pay the estimated public costs authorized by the TIF Plan, the City shall use the excess tax increments to: (1) prepay any outstanding tax increment bonds; (2) discharge the pledge of tax increments thereof; (3) pay amounts into an escrow account dedicated to the payment of the tax increment bonds; or (4) return excess tax increments to the County Auditor for redistribution to the City, County and School District. The County Auditor must report to the Commissioner of Education the amount of any excess tax increment redistributed to the School District within 30 days of such redistribution. Section S Tax Increment Pooling and the Five-Year Rule As permitted under Minnesota Statutes, Section 469.1763, subdivision 2(b) and subdivision 3(a)(5), any expenditures of increment from the TIF District to pay the cost of a “housing project” as defined in Minnesota Statutes, Section 469.174, subd. 11 will be treated as an expenditure within the district for the purposes of the “pooling rules” and the “five-year rule”. The City does not currently anticipate that tax increments will be spent outside the TIF District (except allowable administrative expenses), but such expenditures are expressly authorized in this TIF Plan. The Authority does not expect that allowable pooling expenditures will be made outside of the TIF District, but such expenditures are expressly authorized in this TIF Plan. Section T Limitation on Administrative Expenses Administrative expenses are defined as all costs of the Authority other than: (1) amounts paid for the purchase of land; (2) amounts paid for materials and services, including architectural and engineering services directly connected with the proposed development within the TIF District; (3) relocation benefits paid to, or services provided for, persons or businesses residing or located within the TIF District; or (4) amounts used to pay interest on, fund a reserve for, or sell at a discount, tax increment bonds. Administrative expenses include amounts paid for services provided by bond counsel, fiscal consultants, planning or economic development consultants, and actual costs incurred by the County in administering the TIF District. Tax increments may be used to pay administrative expenses of the TIF District up to the lesser of (a) 10% of the total tax increment expenditures authorized by the TIF Plan or (b) 10% of the total tax increments received by the District. Section U Limitation on Property Not Subject to Improvements - Four Year Rule If after four years from certification of the TIF District no demolition, rehabilitation, renovation, or qualified improvement of an adjacent street has commenced on a parcel located within the TIF District, then that parcel shall be excluded from the TIF District and the original net tax capacity shall be adjusted accordingly. Qualified Lino Lakes Economic Development Authority, Minnesota BAKER TILLY Page 9 improvements of a street are limited to construction or opening of a new street, relocation of a street, or substantial reconstruction or rebuilding of an existing street. The City must submit to the County Auditor, by February 1 of the fifth year, evidence that the required activity has taken place for each parcel in the TIF District. If a parcel is excluded from the TIF District and the City or owner of the parcel subsequently commences any of the above activities, the City shall certify to the County Auditor that such activity has commenced, and the parcel shall once again be included in the TIF District. The County Auditor shall certify the net tax capacity of the parcel, as most recently certified by the Commissioner of Revenue, and add such amount to the original net tax capacity of the TIF District. Section V Estimated Impact on Other Taxing Jurisdictions Exhibit IV shows the estimated impact on other taxing jurisdictions if the maximum projected retained captured net tax capacity of the TIF District was hypothetically available to the other taxing jurisdictions. The City believes that there will be no adverse impact on other taxing jurisdictions during the life of the TIF District, since the proposed development would not have occurred without the establishment of the TIF District and the provision of public assistance. A positive impact on other taxing jurisdictions will occur when the TIF District is decertified and the development therein becomes part of the general tax base. The fiscal and economic implications of the proposed tax increment financing district, as pursuant to Minnesota Statutes, Section 469.175, Subdivision 2, are listed below. 1. The total amount of tax increment that will be generated over the life of the district is estimated to be $3,714,507. 2. To the extent the facility in the proposed TIF District generates any public cost impacts on city-provided services such as police and fire protection, public infrastructure, and borrowing costs attributable to the district, such costs will be levied upon the taxable net tax capacity of the City, excluding that portion captured by the District. The City does not plan to issue bonds in conjunction with this project. 3. The amount of tax increments over the life of the district that would be attributable to school district levies, assuming the school district’s share of the total local tax rate for all taxing jurisdictions remained the same, is estimated to be $1,136,840. 4. The amount of tax increments over the life of the district that would be attributable to county levies, assuming the county’s share of the total local tax rate for all taxing jurisdictions remained the same is estimated to be $1,089,103. 5. No additional information has been requested by the county or school district that would enable it to determine additional costs that will accrue to it due to the development proposed for the district. Section W Prior Planned Improvements The Authority shall accompany its request for certification to the County Auditor (or notice of district enlargement), with a listing of all properties within the TIF District for which building permits have been issued during the 18 months immediately preceding approval of the TIF Plan. The County Auditor shall increase the original net tax capacity of the TIF District by the net tax capacity of each improvement for which a building permit was issued. There have been no building permits issued in the last 18 months in conjunction with any of the properties within the TIF District. Lino Lakes Economic Development Authority, Minnesota BAKER TILLY Page 10 Section X Development Agreements If within a project containing a housing district, more than 10% of the acreage of the property to be acquired by the Authority is purchased with tax increment bonds proceeds (to which tax increment from the property is pledged), then prior to such acquisition, the Authority must enter into an agreement for the development of the property. Such agreement must provide recourse for the Authority should the development not be completed. The Authority anticipates entering into an agreement for development but does not anticipate acquiring any property located within the TIF District. Section Y Assessment Agreements The City may, upon entering into a development agreement, also enter into an assessment agreement with any person, which establishes a minimum market value of the land and improvements for each year during the life of the TIF District. The assessment agreement shall be presented to the County or City Assessor who shall review the plans and specifications for the improvements to be constructed, review the market value previously assigned to the land, and so long as the minimum market value contained in the assessment agreement appears to be an accurate estimate, shall certify the assessment agreement as reasonable. The assessment agreement shall be filed for record in the office of the County Recorder of each county where the property is located. Any modification or premature termination of this agreement must first be approved by the City, County and School District. The Authority anticipates entering into an assessment agreement. Section Z Modifications of the Tax Increment Financing Plan Any reduction or enlargement in the geographic area of the Project Area or the TIF District; increase in the amount of bonded indebtedness to be incurred; increase in the amount of capitalized interest; increase in that portion of the captured net tax capacity to be retained by the City; increase in the total estimated capital and administrative costs; or designation of additional property to be acquired by the City shall be approved only after satisfying all the necessary requirements for approval of the original TIF Plan. This paragraph does not apply if: (1) the only modification is elimination of parcels from the TIF District; and (2) the current net tax capacity of the parcels eliminated equals or exceeds the net tax capacity of those parcels in the TIF District's original net tax capacity, or the City agrees that the TIF District's original net tax capacity will be reduced by no more than the current net tax capacity of the parcels eliminated. The City must notify the County Auditor of any modification that reduces or enlarges the geographic area of the TIF District. The geographic area of the TIF District may be reduced but not enlarged after five years following the date of certification. Section AA Administration of the Tax Increment Financing Plan Upon adoption of the TIF Plan, the City shall submit a copy of such plan to the Minnesota Department of Revenue and the Office of the State Auditor. The City shall also request that the County Auditor certify the original net tax capacity and net tax capacity rate of the TIF District. To assist the County Auditor in this process, the City shall submit copies of the TIF Plan, the resolution establishing the TIF District and adopting the TIF Plan, and a listing of any prior planned improvements. The City shall also send the County Assessor any assessment agreement Lino Lakes Economic Development Authority, Minnesota BAKER TILLY Page 11 establishing the minimum market value of land and improvements in the TIF District and shall request that the County Assessor review and certify this assessment agreement as reasonable. The County shall distribute to the City the amount of tax increment as it becomes available. The amount of tax increment in any year represents the applicable property taxes generated by the retained captured net tax capacity of the TIF District. The amount of tax increment may change due to development anticipated by the TIF Plan, other development, inflation of property values, or changes in property classification rates or formulas. In administering and implementing the TIF Plan, the following actions should occur on an annual basis: (1) prior to July 1, the City shall notify the County Assessor of any new development that has occurred in the TIF District during the past year to ensure that the new value will be recorded in a timely manner. (2) if the County Auditor receives the request for certification of a new TIF District, or for modification of an existing TIF District, before July 1, the request shall be recognized in determining local tax rates for the current and subsequent levy years. Requests received on or after July 1 shall be used to determine local tax rates in subsequent years. (3) each year the County Auditor shall certify the amount of the original net tax capacity of the TIF District. The amount certified shall reflect any changes that occur as a result of the following: (a) the value of property that changes from tax-exempt to taxable shall be added to the original net tax capacity of the TIF District. The reverse shall also apply; (b) the original net tax capacity may be modified by any approved enlargement or reduction of the TIF District; (c) if the TIF District is classified as an economic development district, then the original net tax capacity shall be increased by the amount of the annual adjustment factor; and (d) if laws governing the classification of real property cause changes to the percentage of estimated market value to be applied for property tax purposes, then the resulting increase or decrease in net tax capacity shall be applied proportionately to the original net tax capacity and the retained captured net tax capacity of the TIF District. The County Auditor shall notify the City of all changes made to the original net tax capacity of the TIF District. Section AB Filing TIF Plan, Financial Reporting and Disclosure Requirements The City will comply with all reporting requirements for the TIF District under Minnesota Statutes, Section 469.175, subdivisions 5 and 6. Exhibit I BAKER TILLY Page 12 MAP OF PROPOSED TAX INCREMENT FINANCING (HOUSING) DISTRICT NO. 1-13 Exhibit II BAKER TILLY Page 13 Assumptions Report City of Lino Lakes, Minnesota Tax Increment Financing (Housing) District No. 1-13 Lyngblomsten Site: Senior Care Campus Draft TIF Plan Exhibits: Updated Revenue Projections with $28,991,000 new value Type of Tax Increment Financing District Housing Maximum Duration of TIF District 25 years from 1st increment Projected Certification Request Date 12/30/19 Decertification Date 12/31/30 (9 Years of Increment) 2017/2018 Base Estimated Market Value $908,400 Original Net Tax Capacity $11,355 Assessment/Collection Year 2019/2020 2020/2021 2021/2022 2022/2023 Base Estimated Market Value $908,400 $908,400 $908,400 $908,400 Estimated Increase in Value - New Construction 0 0 28,082,600 28,082,600 Total Estimated Market Value 908,400 908,400 28,991,000 28,991,000 Total Net Tax Capacity $11,355 $11,355 $362,388 $362,388 City of Lino Lakes 41.817% Anoka County 34.473% Centennial SD #12 35.984% Other 5.300% Local Tax Capacity Rate 117.5740% 2018/2019 Fiscal Disparities Contribution From TIF District 0.0000% Administrative Retainage Percent (maximum = 10%) 5.00% Pooling Percent 0.00% Present Value Date & Rate 02/01/20 5.00% PV Amount $2,726,536 Notes Projections assume no future changes to classification rates and current tax rates remain constant. Projections are based on final pay 2019 rates. Projections assume project 100% completed in 2020 Projections assume no market value inflation. Exhibit III BAKER TILLY Page 14 Projected Tax Increment ReportCity of Lino Lakes, MinnesotaTax Increment Financing (Housing) District No. 1-13Lyngblomsten Site: Senior Care CampusDraft TIF Plan Exhibits: Updated Revenue Projections with $28,991,000 new valueLess: Retained Times: Less: Less: P.V.Annual Total Total Original Captured Tax Annual State Aud. Subtotal CityAnnual AnnualPeriod Market Net Tax Net Tax Net Tax Capacity Gross Tax Deduction Net Tax Retainage Net Net Rev. ToEnding Value (1)Capacity (2)Capacity (3)Capacity Rate (4)Increment 0.360% Increment 5.00% Revenue 02/01/20(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) 5.00%12/31/19 908,400 11,355 11,355 0 117.574% 0 0 0 0 0 012/31/20 908,400 11,355 11,355 0 117.574% 0 0 0 0 0 012/31/21 908,400 11,355 11,355 0 117.574% 0 0 0 0 0 012/31/22 28,991,000 362,388 11,355 351,033 117.574% 412,723 1,486 411,237 20,562 390,675 * 337,48012/31/23 28,991,000 362,388 11,355 351,033 117.574% 412,723 1,486 411,237 20,562 390,675 321,40912/31/24 28,991,000 362,388 11,355 351,033 117.574% 412,723 1,486 411,237 20,562 390,675 306,10412/31/25 28,991,000 362,388 11,355 351,033 117.574% 412,723 1,486 411,237 20,562 390,675 291,52812/31/26 28,991,000 362,388 11,355 351,033 117.574% 412,723 1,486 411,237 20,562 390,675 277,64512/31/27 28,991,000 362,388 11,355 351,033 117.574% 412,723 1,486 411,237 20,562 390,675 264,42412/31/28 28,991,000 362,388 11,355 351,033 117.574% 412,723 1,486 411,237 20,562 390,675 251,83312/31/29 28,991,000 362,388 11,355 351,033 117.574% 412,723 1,486 411,237 20,562 390,675 239,84112/31/30 28,991,000 362,388 11,355 351,033 117.574% 412,723 1,486 411,237 20,562 390,675 228,420$3,714,507 $13,374 $3,701,133 $185,058 $3,516,075 $2,518,684* City has the election to opt delay receipt of first increment up to 4 years from approval date. Further discussions regarding first year collection(1) Total estimated market value based on information provided by County Assessor, subject to further review very preliminary and subject to further review. Includes 0% annual market value inflator(2) Total net tax capacity based on residential rental class rate of 1.25% (3) Original net tax capacity based on portion of existing land value for 1 parcel to be included in development (4) Total local tax capacity rate for taxes payable 2019 Exhibit IV BAKER TILLY Page 15 Estimated Impact on Other Taxing Jurisdictions ReportCity of Lino Lakes, MinnesotaTax Increment Financing (Housing) District No. 1-13Lyngblomsten Site: Senior Care CampusDraft TIF Plan Exhibits: Updated Revenue Projections with $28,991,000 new valueWithoutProject or TIF District With Project and TIF DistrictFinal Projected Hypothetical2018/2019 2018/2019 Retained New Hypothetical Hypothetical Tax GeneratedTaxable 2018/2019 Taxable Captured Taxable Adjusted Decrease In by RetainedTaxing Net Tax Local Net Tax Net Tax Net Tax Local Local CapturedJurisdiction Capacity (1) Tax Rate Capacity (1) + Capacity = Capacity Tax Rate (*) Tax Rate (*) N.T.C. (*)City of Lino Lakes 20,757,860 41.817% 20,757,860 $351,033 21,108,89341.122% 0.695% 144,350Anoka County 335,542,347 34.473% 335,542,347 351,033 335,893,380 34.437% 0.036% 120,885Centennial SD #12 33,044,600 35.984% 33,044,600 351,033 33,395,633 35.606% 0.378% 124,988Other - 5.300% - - - 5.300% - -Totals 117.574% 116.464% 1.110% * Statement 1: If the projected Retained Captured Net Tax Capacity of the TIF District was hypothetically available to each ofthe taxing jurisdictions above, the result would be a lower local tax rate (see Hypothetical Adjusted Tax Rate above)which would produce the same amount of taxes for each taxing jurisdiction. In such a case, the total local tax ratewould decrease by 1.110% (see Hypothetical Decrease in Local Tax Rate above). The hypothetical tax that theRetained Captured Net Tax Capacity of the TIF District would generate is also shown above.Statement 2: Since the projected Retained Captured Net Tax Capacity of the TIF District is not available to the taxing jurisdictions,then there is no impact on taxes levied or local tax rates. (1) Taxable net tax capacity = total net tax capacity - captured TIF - fiscal disparity contribution, if applicable. (2) The impact on these taxing jurisdictions is negligible since they represent only 4.51% of the total tax rate.