HomeMy WebLinkAbout11/24/2003 Council MinutesAPPROVED
1 CITY OF LINO LAKES
• 2 MINUTES
3
4
5 DATE : November 24, 2003
6 TIME STARTED : 6:56 P.M.
7 TIME ENDED : 8:10 P.M.
8 MEMBERS PRESENT : Councilmembers Carlson, Dahl, O'Donnell, Reinert
9 and Mayor Bergeson
10 MEMBERS ABSENT : None
11
12 Staff members present: Acting City Administrator/Director of Administration, Dan Tesch;
13 Community Development Director, Michael Grochala; City Engineer, Jim Studenski; City Planner,
14 Jeff Smyser; Finance Director, Al Rolek; City Clerk, Ann Blair; and City Attorney, Bill Hawkins.
15
16 SETTING THE AGENDA
17
18 Mayor Bergeson noted that Item 1C was removed from the consent agenda.
19
20 The agenda was approved as amended.
21
22 CONSENT AGENDA
23
24 Councilmember Carlson moved to approve the Consent Agenda, as submitted. Councilmember Dahl
•25 seconded the motion.
26
27 Motion carried unanimously.
28
29 ITEM ACTION
30
31 A. CONSIDERATION OF EXPENDITURES:
32
33 i) November 24, 2003 (Check No. 69623 -
34 69758, $1,925,464.60) Approved
35
36 ii) Centennial Fire District (Check No. 14018 -
37 14032, $4,036.06) Approved
38
39 B. CONSIDERATION OF RESOLUTION NO. 03-206
40 ACCEPTING TURTLEMAN TRIATHLON
41 DONATION Approved
42
43 D. APPROVE AMENDED SUMMARY OF MUNICIPAL
44 ELECTION RESULTS Approved
45
46 OPEN MIKE
47
•48 There was none.
COUNCIL MINUTES NOVEMBER 24, 2003
APPROVED
49
•50 FINANCE DEPARTMENT REPORT, AL ROLEK
51
52 A. Award Sale of Bonds
53
54 Finance Director Al Rolek summarized the Staff report, indicating Staff recommends that the City
55 Council approve the sale.
56
57 Terry Eaton, representative of Springsted stated that bonds were received today on behalf of the City
58 of Lino Lakes. She advised they were selling $2,120,000, with $920,000 related to new projects, and
59 the remainder representing rebonding. She stated the bidders want higher rates than they were seeing,
60 so some are paying a premium; similar to paying points when you buy a house to lower the rate, these
61 premiums raise the rate. She indicated that because of that, they were able to reduce the amount
62 needed to bond to $2,000,090. She explained the financial aspects of the bond deal, and stated the
63 City has a bond rating affirmation of A2. She read an excerpt from the Moody report relating how
64 strong the City is financially. She stated there is a resolution for the City Council approving the
65 competitive sale.
66
67 Ms. Eaton advised the second resolution is for private placement for $250,000, which are for taxable
68 bonds rather than tax exempt. She stated they have negotiated with Lino Lakes State Bank at 5.008%
69 on 10 year bonds. She indicated they actually had a public sale of both taxable and non-taxable bonds
70 a year ago, at which point there was a difference of 1.7%, and in this case it is 1.68%. She stated they
71 are recommending awarding the sale to Lino Lakes State Bank.
.72
73 Finance Director Rolek indicated they would like these resolutions approved as separate actions.
74
75 Councilmember Dahl moved to adopt Resolution No. 03-210 awarding the sale of $2,120,000
76 General Obligation Improvement and Refunding Bonds, Series 2003A fixing their form and
77 specifications; directing their execution and delivery; and providing for their payment..
78 Councilmember Carlson seconded the motion.
79
80 Motion carried unanimously.
81
82 Councilmember O'Donnell moved to adopt Resolution No. 03-211 awarding the sale of $250,000
83 Taxable General Obligation Improvement Bonds, Series 2003B fixing their form and specifications;
84 directing their issuance and delivery; and providing for their payment.
85
86 Motion carried unanimously.
87
88 Resolution Nos. 03-210 and 03-211 can be found in the City Clerk's office.
89
90 ADMINISTRATION DEPARTMENT REPORT, DAN TESCH
91
92 A. Consider Resolution No. 03-215 approving Liquor License Transfer for 49 Club, Ann
93 Blair, City Clerk
94
•95 City Clerk Blair summarized the Staff report, indicating Staff recommends approval.
96
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COUNCIL MINUTES NOVEMBER 24, 2003
APPROVED
97 Councilmember Reinert stated he would like to hear about what changes the new owners are
• 98 proposing, if any. Chris McAlpine stated they will run it as is in the beginning to see how things go,
99 with remodeling taking place in a few months.
100
101 Councilmember Reinert asked if they are familiar with the establishment. Mr. McAlpine stated they
102 are familiar with it.
103
104 Mayor Bergeson noted that while he is sure the new owners are aware of this, he wanted to reiterate
105 the City takes their liquor and tobacco licenses seriously, and he hopes they will practice full
106 compliance. He welcomed them to the community.
107
108 Councilmember Reinert moved to adopt Resolution No. 03-215 approving transfer of existing On -
109 sale Liquor License from David Nathe to Michael Lovick, Damon Lawson, and Chris McAlpine d/b/a
110 DM Hospitality and issuance of new Tobacco License, both for the 49 Club, 6007 Hodgson Road.
111 Councilmember Dahl seconded the motion.
112
113 Motion carried unanimously.
114
115 Resolution No. 03-215 can be found in the City Clerk's office.
116
117 B. Consider Rescinding Resolution No. 03-198, which approved transfer of Off -Sale Liquor
118 License, J & K Liquors, Ann Blair, City Clerk
119
Ail 20 City Clerk Blair summarized the Staff report, indicating the City Council is not required to take any
21 official action in this reversal. She stated that in the interest of clarity, she recommends that the
122 Council move to reconsider its approval of Resolution No. 03-198, and then to formally deny the
123 application on the basis that the sale is null and void.
124
125 Councilmember O'Donnell moved to reconsider Resolution No. 03-198, which approved transfer of
126 Off -Sale Liquor License, J & K Liquors. Councilmember Dahl seconded the motion.
127
128 Motion carried unanimously.
129
130 Councilmember Reinert moved to deny Resolution No. 03-198, denying transfer of Off -Sale Liquor
131 License, J & K Liquors. Councilmember Dahl seconded the motion.
132
133 Motion carried unanimously.
134
135 Resolution No. 03-198 can be found in the City Clerk's office.
136
137 PUBLIC SAFETY DEPARTMENT REPORT, DAVE PECCHIA
138
139 There was no report.
140
141 PUBLIC SERVICES DEPARTMENT REPORT, RICK DEGARDNER
142
43 There was no report.
Ip44
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COUNCIL MINUTES NOVEMBER 24, 2003
APPROVED
145 COMMUNITY DEVELOPMENT DEPARTMENT REPORT, MICHAEL GROCHALA
046
147 A. Consideration of Resolution No. 03-209, Modifying Development District No. 1 and
148 Establishing Tax Increment Financing District No. 1-11, Mary Alice Divine
149
150 Economic Development Assistant Divine summarized the Staff report. She noted they started this
151 project in 1997, when the City bought 11 acres of land for this project, which is still vacant and not
152 generating taxes. She continued the report, noting some years ago the City committed to they
153 YMCA, which is not in the TIF district. She noted this is a public hearing.
154
155 Councilmember Carlson asked if the number of housing units shown on page two is correct.
156 Economic Development Assistant Divine stated the number is correct for the number of units within
157 the TIF district, however there are many units outside the district that will generate tax as soon as they
158 are built.
159
160 Mayor Bergeson opened the public hearing at 7:22 p.m. There was no one present who wished to
161 speak.
162
163 Councilmember Carlson moved to close the public hearing at 7:22 p.m. Councilmember Dahl
164 seconded the motion.
165
166 Motion carried unanimously.
167
Ah168 Economic Development Assistant Divine stated Staff is recommending approval. She indicated Paul
W69 Steiner from Springsted is available for questions, having made a presentation at the EDA meeting.
170
171 Mr. Steiner reviewed the graphs he presented to the Council, noting they show the tax revenues
172 projected for the project within the TIF district and also outside of the district.
173
174 Councilmember Reinert moved to adopt Resolution No. 03-209 modifying Development District No.
175 1 and establishing Tax Increment Financing District No. 1-11.
176
177 Councilmember Carlson stated her two concerns are the $26,450,000 amount, and the cost of road
178 improvements to the citizens of Lino Lakes, especially after they turned down the bonds for road
179 improvements. She indicated the roads would be built with TIF, but the residents would still be
180 paying for services, police, etc. She stated the sheer dollar amount of this proposal is a concern,
181 especially considering they do not have a plan in place. She indicated she has always supported the
182 Village, and knows public money will be needed to go into it. She stated she also supports the
183 YMCA. She is concerned that regarding the Village, there is not a specific plan to say what they will
184 get, and she is concerned about the road improvements and the $26 million cost.
185
186 Councilmember Reinert asked what is the right amount. Councilmember Carlson stated she did hear
187 the amount proposed, which was about 115th of this, which makes her wonder why this has to be so
188 high. She indicated she remembers when they had the Target and Kohl's project, and the discussion
189 that they would have to increase the amount of TIF, even though they did not. She is concerned about
190 statements in the document that indicate the City does not intend to bond for $11 million, but they
91 could.
lip 92
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COUNCIL MINUTES NOVEMBER 24, 2003
APPROVED
193 Economic Development Assistant Divine stated as to the comment about not understanding what they
094 will get, they have a plan for downtown redevelopment, which includes 450 units of lifecycle
195 housing, senior rental housing, work force housing; all things not currently available in Lino Lakes.
196 It includes 350,000 square feet of commercial space, and is designed to be a gathering place. She
197 stated they have received Livable Communities money for the project. She indicated it will have a
198 large community park, with the YMCA being part of the plan, and the Civic Center built on this site
199 to be an integral part of the design. She noted the potential tax increment would be significantly
200 higher than conventional suburban housing, on land that has been underutilized for a number of years.
201
202 Councilmember Carlson stated she has a drawing of another assisted living facility, noting she is
203 looking for that type of quality, not just quantity.
204
205 Economic Development Assistant Divine stated the City Council did see the application at the last
206 work session. She stated the facility Councilmember Carlson mentioned is an assisted living and
207 memory center. She indicated Hartford is proposing an independent living and catered living facility,
208 which is different.
209
210 Councilmember Carlson stated she is looking for more quality with public money. Economic
211 Development Assistant Divine indicated they have an 80 -page design standard, which Hartford is
212 fully meeting.
213
214 Councilmember Carlson indicated what she is saying is they are sitting here without a plan, and
215 without knowing what benefit they will get, and she believes $26 million is higher than they need.
Abi16
lipt17 Economic Development Assistant Divine stated the $26 million is not a cost of the road construction,
218 just a division of costs within the budget. She indicated the City Council will be making a decision
219 on the dollar amounts when the time comes.
220
221 Community Development Director Grochala advised that TIF financing is simply a tool the City can
222 use to accomplish the goals they have been planning for, but they are not suggesting a dollar amount.
223 He added that within that $26 million amount it is broken down in categories of how they can use the
224 money. He stated at the appropriate time the City Council will make a decision, based on a number
225 of factors. He indicated each of the City Staff involved has high standards on what they want to see
226 for the Village. He stated he believes when they see that plan, the dollar amount will be part of it. He
227 cannot say what that plan will be now, but it will be a question for the City Council at that time. He
228 indicated the question now would be is this a viable tool for Staff to use. If it is not, and there is not
229 support from the City Council, he does not think they have the sources to continue with the project.
230 He agreed it is a high dollar amount, but stated there is a high potential in this development for the
231 City. He stated the dollar amount is large because the development is large. He reiterated the City
232 Council is not approving any dollar amount at this time.
233
234 Councilmember O'Donnell stated he concurred with the points that Community Development
235 Director Grochala had reiterated.
236
237 Councilmember Reinert asked Community Development Director Grochala to speak to the issue of
238 the timing of putting TIF in place tonight. Community Development Director Grochala indicated the
'39 developer is starting to spend a significant amount of money. He stated the plan will be going before
ligto the Environmental Board in December, and it will be coming back to the City Council in January or
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COUNCIL MINUTES NOVEMBER 24, 2003
APPROVED
241 February. He indicated during that process they will have more information on the value of the
042 project. He stated to get over this hurdle, they want to get this approved so Staff can go back to the
243 developer and say it is approved, then they can evaluate needs.
244
245 Economic Development Assistant Divine stated the developer needs to know this is a TIF district, and
246 that the City intends to participate before they are willing to spend any more money.
247
248 Councilmember Reinert commented that in summary, Staff has evaluated the project and determined
249 it has a potential of $26 million, so they are making that the maximum dollar amount, because that is
250 the maximum potential, but in reality they do not even know if it will be this project. The bottom line
251 is they want to have something available to them that is the maximum potential, providing the
252 maximum flexibility, so they can evaluate need. He stated the City wants to develop this area, and to
253 do that they need to put this in place. To not go for the maximum amount of flexibility shows a lack
254 of understanding of what they are trying to do. He indicated to not give the City and Staff that
255 flexibility shows a lack of foresight.
256
257 Councilmember Dahl stated when they had TIF districts before, they had some penalties and paid
258 dearly. She asked if they did not use this would they run into the same problem. Economic
259 Development Assistant Divine indicated this is a different situation, and it will not be a problem.
260
261 Mayor Bergeson stated he feels this project is very important for the City, and it has been worked on
262 for years. He indicated it is rare to be able to use redevelopment TIF, and the City should take
263 advantage of that, since it is usually not available for this type of project. He stated it is because of
1.64 the redevelopment that this has been referred to as a tool. He thinks it is important to have the largest
65 toolbox available. He indicated with the Hartford Group they are the closest they have ever been to
266 having a project, and he hopes this does not send a message to them that they do not have the full
267 support of the City Council. He thinks it is important to send a strong signal of support.
268
269 Vote: 3 Ayes, 2 Nays. Motion carried. Councilmembers Carlson and Dahl opposed.
270
271 Resolution No. 03-209 can be found in the City Clerk's office.
272
273 B. Consideration of Resolution No. 03-207, approving Variance to reduce side yard
274 structure setback to 4 % feet from the required 5 feet, Capital Homes, Jeff Smyser
275
276 City Planner Smyser summarized the Staff report.
277
278 Councilmember Carlson moved to adopt Resolution No. 03-207 approving a variance from the side
279 yard setback requirement for property located at 6750 Black Duck Drive. Mayor Bergeson seconded
280 the motion.
281
282 Councilmember Carlson stated she believes this was an honest mistake, which is why she is
283 supporting it.
284
285 Motion carried unanimously.
286
.
87 Resolution No. 03-207 can be found in the City Clerk's office.
88
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COUNCIL MINUTES NOVEMBER 24, 2003
APPROVED
289 C. Consideration of Resolution No. 03-200, Approving Final Plat, Pleasant Hills Preserve
1,90 13th Addition, Jeff Smyser
291
292 City Planner Smyser summarized the Staff report, indicating Staff recommends approval of the
293 resolution.
294
295 Councilmember Dahl moved to adopt Resolution No. 03-200 appproving the final plat for Pheasant
296 Hills Preserve 13th Addition.. Councilmember Reinert seconded the motion.
297
298 Motion carried unanimously.
299
300 Resolution No. 03-200 can be found in the City Clerk's office.
301
302 D. Consideration of Second Reading, Ordinance No. 22-03, Vacating Ingress and Egress
303 Easement, Ravens Hollow Development, Jeff Smyser
304
305 City Planner Smyser summarized the Staff report, indicating Staff recommends approval with the
306 following condition:
307
308 1. Ordinance 22-03 vacating the easement should not be recorded at Anoka County until
309 the final plat is approved with the park dedication.
310
311 City Planner Smyser stated they will not record the ordinance until the final plat issue is resolved.
12
13 Councilmember O'Donnell moved to adopt Ordinance No. 22-03 vacating ingress and egress
314 easement within the area of the Ravens Hollow development. Councilmember Carlson seconded the
315 motion.
316
317 Motion carried unanimously.
318
319 Ordinance No. 22-03 can be found in the City Clerk's office.
320
321 E. Consideration of Resolution No. 03-212, Adopting Assessments for Individual Utility
322 Connections, Jim Studenski
323
324 City Engineer Studenski summarized the Staff report, indicating Staff recommends approval.
325
326 Councilmember Reinert moved to adopt Resolution No. 03-212 adopting assessment for the
327 improvement of individual properties which requested connection to City utilities. Councilmember
328 Dahl seconded the motion.
329
330 Motion carried unanimously.
331
332 Resolution No. 03-212 can be found in the City Clerk's office.
333
334 F. Consideration of Resolution No. 03-213, Approving Change Order No. 1, Century Trail
.
35 Lift Station, Jim Studenski
36
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COUNCIL MINUTES NOVEMBER 24, 2003
APPROVED
337 City Engineer Studenski summarized the Staff report, indicating Staff recommends approval.
1038
339 Councilmember Dahl asked where the lift station is located.
340
341 City Engineer Studenski indicated it is off of Sunset; as you enter the project on the west end it is
342 halfway across the subdivision.
343
344 Councilmember Dahl moved to adopt Resolution No. 03-213 approving Change Order No. 1 and
345 Payment Request No. 1, Century Trail Lift Station Project. Councilmember Reinert seconded the
346 motion.
347
348 Motion carried unanimously.
349
350 Resolution No. 03-213 can be found in the City Clerk's office.
351
352 G. Consideration of Resolution No. 03-208, Approving Final Plat, Hailey Manor, Jeff
353 Smyser
354
355 City Planner Smyser summarized the Staff report, noting there is a bit of a title issue, but he believes
356 it can be handled with the City Attorney and the mortgage company. He noted approval would be
357 contingent on the title, and the resolution would not be filed until approved by the City Attorney.
358
359 Councilmember Reinert moved to approve Resolution No. 03-208, approving the final plat for Hailey
.
60 Manor, contingent upon title approval by the City Attorney. Councilmember Dahl seconded the
61 motion.
362
363 Motion carried unanimously.
364
365 Resolution No. 03-208 can be found in the City Clerk's office.
366
367 UNFINISHED BUSINESS
368
369 There was none.
370
371 NEW BUSINESS
372
373 A. Approval of the November 5, 2003 Council Work Session Minutes
374 B. Approval of the November 10, 2003 City Council Meeting Minutes
375 C. Approval of the November 12, 2003 Special Council Work Session Minutes
376
377 Councilmember Carlson noted a change to the November 5, 2003 minutes, Page 3, line 22 and line
378 23. She indicated what she did not agree with was changing the numbers from those shown in the
379 Comprehensive Plan.
380
381 Councilmember Dahl moved to approve the minutes of November 5th and 10th as amended. Mayor
382 Bergeson seconded the motion.
1.383
84 Motion carried unanimously.
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COUNCIL MINUTES NOVEMBER 24, 2003
APPROVED
385
.86 Councilmember O'Donnell moved to approve the minutes of November 12, 2003 as presented.
387 Councilmember Reinert seconded the motion.
388
389 Motion carried. Councilmember Carlson and Dahl abstained.
390
391 COMMUNITY CALENDAR November 25, 2003 THROUGH December 8, 2003:
392
393 A) Thursday, November 27, 2003, Thanksgiving Day, City Hall Closed
394 B) Friday, November 28, 2003, City Hall Closed
395 C) Monday, December 1, 2003, 6:30 p.m., Park Board Meeting
396 D) Wednesday, December 3, 2003, 5:30 p.m., Council Work Session
397 E) Wednesday, December 3, 2003, 6:30 p.m., Environmental Board Meeting
398 F) Thursday, December 4, 2003, 7:00 a.m., EDAC Meeting
399 G) Monday, December 8, 2003, 6:30 p.m., City Council Meeting
400 H) NOTE: Council Work Session Scheduled for December 17, 2003 has been
.
01 rescheduled for Wednesday, December 10, 2003
02
403 I) NOTE: City Council Meeting Scheduled for December 22, 2003 has been
404 rescheduled for Monday, December 15, 2003
405
406 ADJOURN
407
408 There being no further business, Councilmember Dahl moved to adjourn at 8:10 p.m. Councilmember
409 Reinert seconded the motion.
410
411 Motion carried unanimously.
412
413 These minutes were considered and approved at the regular Council Meeting, December 8, 2003.
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417
418
419 Ann Blair, Ci Clerk John ergeso , Mayor
420
421 Transcribed by:
422 Karen Whaley
423 TimeSaver Off Site Secretarial, Inc.
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