HomeMy WebLinkAbout05.09.16 Work Session Minutes Council Work Session Minutes
May 9,2016
Mayor Larson called the work session to order at 6:30 p.m.
Present: Larson, Bartholomay, Bonar,Donnelly, Pitcher
Absent: None
Also Present: David McKnight, City Administrator; Robin Hanson,Finance Director;Adam
Kienberger, Community Development Director; Cynthia Muller,Executive Assistant
MOTION by Bartholomay, second by Pitcher to approve the agenda. APIF,MOTION
CARRIED.
Trident Development TIF Analysis Update
Trident Development is proposing to build a 70-unit senior living facility south of St.Michael's
Church on Denmark Avenue. Trident has submitted an application for TIF. Ms. Stacie
Kvilvang, Ehlers&Assoc,explained the process of TIF.
We currently have two TIF districts. The redevelopment district was established in 1991 and
becomes certified December 31, 2020. The CDA housing district was established in 1993 and
becomes certified December 31,2020.
Each project has a development contract that sets the amount of TIF. Most developments are
done on a pay-as-you go basis. The city gives the developer a note that says you will pay at a
certain interest rate which is the same as the financing. The developer pays the taxes,the city
gets the payments. It is developer risk based.
The Trident project requested a TIF note for 26 years for$2 million at 4%interest. Ehlers found
this is not justified. What is justified is$1 million in TIF over 10 years. Today things have
changed and now the recommendation is$1.47 million over 11 years and assumes a 2%inflation
and would generate$117,000 less. What changed is the market value went up. Ms.Kvilvang
explained the financial items Ehlers reviewed for this project. The terms are to create a TIF
district for 26 years,20%of the units will be affordable,the note will be for$1.47 million for 11
years. The developer has to construct a utility extension for$300,000. City fees amount to
$111,000 in park dedication fees,utility hook up charges of$400,000, and will pay 100%of
EDA costs. They have put down a$15,000 deposit.
The city gets a new housing option with 20 new full time jobs,the church no longer owns the
land so taxes on the land only are$1,100 which the city will receive in years one through 11.
When the TIF note is paid off in today's tax rate the city would receive$73,000 in taxes.
This item will be discussed at the May 10, 2016, Planning Commission meeting for the land use.
May 26, 2016,the EDA will adopt a resolution for the TIF plan and the development agreement.
Council Work Session Minutes
May 9,2016
Page 2
June 6, 2016,will be Council approval. Trident can then start construction in June. Council was
in agreement with this plan.
Part Time Building Inspector Position Discussion
The city currently has two staff positions in inspections, a building official and a building
inspector. Development is increasing with new homes and also home improvements and has
caused a significant increase in workload. There is also an increase in commercial projects.
Currently staff does not account for commercial development revenue. The building official
only is certified to review commercial plans and inspections. Therefore, an additional part-time
staff position is needed.
Council asked if a cost analysis has been done to outsource the position. From past experience,
staff has found it is two times more expensive to outsource versus having an internal position.
This would be part-time so there would be no benefits. The cost would be$30,000 -$40,000 for
the rest of this year and staff would like to hire someone who is a certified building inspector.
Commercial permit revenue would more than cover the position. When housing picks up, staff
would like to convert this position to full time. For a part-time position,the hours would be
capped at 29 hours per week.
Council again brought up doing an analysis to contract out the work. Staff felt the difference
with a contracted person versus in house is a city employee has more commitment toward the
city and residents become familiar with this person. Engineering also moved away from a
contracted position in the past few years. We have the Trident development and This Little
Piggy projects and more projects annually with the potential start of Fairhill. Staff doesn't know
about the market for a part-time building inspector, but would like to try. It is not just housing
permits,but all permits are increasing. Some councilmembers felt hiring shows a commitment
on the part of the city. Staff will post the position.
Liquor Store Funds
Liquor store funds have four pots. The city has more money in the community/organization
transfer pot than we should have. It amounts to$227,437.07. The capital improvement pot has
$267,437.08. Staff listed several uses for the funds. In addition to the list,Council suggested
purchasing a new truck for building inspections. After a discussion about placing a wrap on the
truck with"Paid for by liquor funds"it was decided to not have a wrap on the truck. The
majority of Council agreed on the following items:
Downtown redevelopment plan bike racks $5,000
Benches and signs $10,000
LED monument sign(by police station) $50,000
Patio/doors for banquet room at RRC $25,000
Pergola at RRC $5,000
Roving camera for parks/other areas $10,000
Arena sound system (partnership with FYHA) $8,000
Building Inspections vehicle TBD
Council Work Session Minutes
May 9,2016
Page 3
Liquor Store Update
City Administrator McKnight and Council discussed various options for a location for the
downtown liquor store.
Recreational Facilities Plan Review
Council discussed the recommendation received from the task force at the May 2,2016, City
Council meeting.
The second sheet of outdoor ice next to the arena is refrigerated ice without a roof and lights.
FYHA has offered to make a donation towards the roof and lights.
Councilmembers discussed wanting items to be complete and whether the recommendation was
spread too thin over several facilities. They did not want to make major changes to the
recommendation, but felt a minor change would be appropriate. It was determined to remove the
proposed building at North Creek Park and use those funds towards a roof and lights for the
outdoor ice. Funds would still be needed from FYHA, but then this project would be complete.
Council then discussed the question to be placed on the November 8, 2016, general election
ballot. As of now,the majority of Council agreed with having two questions on the ballot. One
for a$10 million referendum including the change with North Creek Park funds going to the
arena, and a second question for a$12.5 million referendum with the entire task force
recommendation as presented. The wording of the question would be determined by the city
attorney. Council will need to make a final decision on the ballot question by August 1,2016.
MOTION by Bartholomay, second by Larson to adjourn at 8:25 p.m. APIF,MOTION
CARRIED.
Respectfully submitted,
Cynthia Muller
Executive Assistant