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HomeMy WebLinkAbout11/22/1993 Council Minutes1 1 1 COUNCIL WORK SESSION NOVEMBER 22, 1993 CITY OF LINO LAKES COUNCIL MINUTES DATE November 22 1993 TIME STARTED : 6:00 P.M. TIME ENDED : 6:28 P.N. MEMBERS'PRESENT: Reinert; Neal, Elliott, Bergeson! MEMBERS ABSENT Kuether Staff members present: City Attorney, Bill Hawkins; City Engineer, Darrell Schneider; Economic Development Advisory Authority Board Chairman, Brian Wessel; Planning Coordinator, Mary Kay Wyland; Consulting Engineer, Tim Hanson; Public Works Director, Don Volk; City Administrator, Randy Schumacher and Clerk -Treasurer Marilyn Anderson. The purpose of the work session was to discuss the latest information regarding the Lake Drive (County Road #23) and Highway #49 Intersection improvement. Mr. Schumacher gave a brief background of the project noting that the project has been under consideration for nearly five (5) years. A public hearing on the improvement had been scheduled for October 25, 1993, continued to November 8, 1993 and then continued again to this evening to allow time to fully inform the developer and the property owner of the scope of the improvement and to discuss the assessment of the property with the property owner. Mr. Schumacher has met with the property owner George Reiling. Mr. Reiling is contending that the proposed assessment cannot be supported in court. The total project costs are nearly $2,.000,000.00 and the proposed assessment to the only affected property owner is about $400,000.00. "Mr. Schumacher has explained to him that capturing Tax Increment Financing (TIF) will reduce that assessment to approximately $200,000.00. Mr. Reiling still feels the assessment is too high. He feels that he can sell his property and not pay any assessment. He has emphasized that he supports the improvement project and has cooperated with the City regarding the improvement itself. PAGE 1 299 9 COUNCIL WORK SESSION NOVEMBER 22, 1993 Mr. Schumacher explained that this project is very important for several different reasons. The reasons include safety at the intersection, the possibility of losing both the state and county financial support and delay of the commercial development of the area. He asked the City Council to look at different funding options so as to be prepared for the possibility that Mr. Reiling will be successful in his attempt to avoid the assessment. If some other funding source is determined the project can be completed as scheduled and the City will not lose the state and county financial support. Mayor Reinert said that he was not about to allow the state and county aid to "go down the tubes". He noted that several years of work and costs have already been expended and if the project is not completed as planned, the City may never receive state and county aid for the project. Council Member Bergeson asked what happens if the City proceeds with the project and assesses Mr. Reiling's property. Mr. Schneider explained that he has proposed that the assessment hearing be held as prior to construction of the project so that the City can determine if Mr. Reiling will indeed petition against the assessment. Mr. Hawkins explained that the City could proceed and construct the project in the normal manner. An appraisal of Mr. Reiling's property would be obtained prior to the construction and another appraisal would be obtained after the construction. This would determine the increase in value. It is presumed that Mr. Reiling would also have his property appraised in the same manner. If Mr. Reiling appeals his assessment and the matter goes to court, the court will make a decision regarding how much the improvement project increased the value of Mr. Reiling's property. If the court decides that the value is a lesser amount than determined by the City, the assessment could be reduced. The City must then fund the difference. Mr. Schumacher asked Mr. Hawkins if the City could go forward with the construction and put in the new street alignment with just the basic service leaving Mr. Reiling's property without the service needed to develop his property? Also can the City charge Mr. Reiling the full assessment when he decides that he needs the services? Mr. Hawkins said this can be done for sewer and water improvement projects but not for street improvements. Mayor Reinert said that the City Council must recognize the safety concern at this intersection and also take note that approximately $120,000.00 has already been expended on the project. He also noted that the City has "pushed" the state and PAGE 2 1 1 1 1 1 COUNCIL WORK SESSION NOVEMBER 22, 1993 county for aid and the aid has been promised. The City cannot stop the project at this point. Council Member Bergeson asked if the City Council orders preparation of the plans and specifications at a cost of approximately $90,000.00, how long will that preparation take? Mr. Schneider said from 60 to 90 days. Mr. Schneider also noted that the state will not guarantee funding until the plans and specifications are completed and approved. Mr. Schumacher noted another critical issue regarding the Tax Increment Financing (TIF) district in which this property is located. He explained that there are only five (5) years left in which to collect the tax increment. Mayor Reinert asked if the City is assured that the state funding is committed? Mr. Hanson explained that MnDOT has approved the project layout and the funding elements. However, the funding is not set for the 1995/1996 funding period. A "flag" has been placed along side this project which means that it is a MnDOT priority. However, the funds are committed on a first come, first served basis. The state will not commit any funding until the plans and specifications are complete. Council Member Bergeson asked what is the biggest concern at this time. Mr. Hanson said when the funds will be committed, 1994 or 1995. The county funds have been committed and are set aside for the project. Mr. Schneider explained that the worst case would be that the project would be constructed and the City would have to fund the project "up front" until the state funding is available. Mayor Reinert asked if the developer is ready to start work on his project. Mr. Wessel explained that the developer plans to start the first phase in late spring or early summer of 1994. This schedule is dependent upon the re -alignment of the intersection. Mr. Hanson noted other concerns are acquiring the proper right- of-way and resolving the wetland issues. Mayor Reinert asked if there were any problems with acquiring the right-of-way. Mr. Schumacher has confirmed with Mr. Reiling that there will be a "swap" with Mr. Reiling. However, there are two (2) other property owners,- the Klingingsmith and Northern Instruments. There should be no problems with these landowners. Mr. Volk noted that the state has indicated that they may be rectonstructing the bridge over Rice Creek as a part of upgrading Highway #49. This will be a separate project. Mr. Schneider noted that the state wants to give Highway #49 back to Anoka County and Ramsey County. However, these entities are far from a PAGE 3 3 ,1 302. COUNCIL WORK SESSION NOVEMBER 22, 1993 settlement in this area. Mr. Schneider explained that he and Mr. Hanson are prepared to make a presentation of the project at the public hearing later this evening. The work session ended at 6:28 P.M. These minutes were considered, corrected and approved at a regular Council meeting held December 13, 1993. ar 1ynJ G. Anderson, Clerk -Treasurer Vernon F. Reinert, Mayor PAGE 4