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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 2 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 3 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 4 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 5 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 6 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 7 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. 8 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. 414 415 416 417 418 419 Ann Blair, Ci Clerk John ergeso , Mayor 420 421 Transcribed by: 422 Karen Whaley 423 TimeSaver Off Site Secretarial, Inc. 424 9