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HomeMy WebLinkAbout02.21.23 Council MinutesCOUNCIL MINUTES REGULAR February 21, 2023 1. CALL TO ORDER The meeting was called to order by Mayor Hoyt at 7:00 p.m. 2. PLEDGE OF ALLEGIANCE Mayor Hoyt led the audience and Council in the Pledge of Allegiance. 3. ROLL CALL Members Present: Hoyt, Bernatz, Porter, Wilson Members Absent: Lien Also Present: Leah Koch, City Attorney; Lynn Gorski, City Administrator; Chris Regis, Finance Director; Deanna Kuennen, Community Development Director; John Powell; Public Works Director; Kellee Omlid, Parks and Recreation Director; Cynthia Muller, Administrative Assistant Audience: 4. APPROVE AGENDA MOTION by Porter, second by Wilson to approve the agenda. APIF, MOTION CARRIED. 5. ANNOUNCEMENTS 6. CITIZEN COMMENTS 7. CONSENT AGENDA MOTION by Bernatz, second by Wilson to approve the Consent Agenda as follows: a) Approved February 6, 2023, City Council Work Session and Meeting Minutes - Administration b) Approved Temporary On-Sale Liquor License – Corinthian Lodge No. 67 – Administration c) Adopted RESOLUTION R14-23 Approving Modifications to the Business Subsidy Policy – Community Development d) Approved Bills – Finance e) MOTION by Wilson, second by Porter to pull item 7e) Approving Use Agreement Between the Dakota County Agriculture Society and the Farmington Fire Department until the March 6, 2023, City Council meeting. APIF, MOTION CARRIED. f) Adopted Seasonal Wage Scale – Human Resources g) Approved Staff Changes and Recommendations – Human Resources h) Approved Agreement with HKGi for Park Dedication Study – Parks and Recreation i) Adopted RESOLUTION R15-23 Accepting Donation from the Farmington Sons of the American Legion to the Rambling River Center – Parks and Recreation j) Approved Application for a 2023 MN DNR Emerald Ash Borer Grant – Public Works Council Minutes (Regular) February 21, 2023 Page 2 k) Approved Engineering and Technical Professional Services Consultant Pool for 2023-2027 – Public Works APIF, MOTION CARRIED. 8. PUBLIC HEARINGS a) Adopt Resolution Approving Tax Increment Financing (TIF) Plan – Community Development This item was to create a TIF district plan, discuss what is in a TIF plan and why a public hearing is required. No decision will be made tonight on the actual TIF assistance. Mr. Jason Aarsvold, with Ehlers, explained this is to create TIF district 15 for the Ebert Downtown Housing project. This is a 74-unit market rate rental project. The total project costs are $19.7 million. The project has a financing gap, therefore the TIF request of $2 million over 26 years. After negotiations, the actual TIF amount will be $1,750,000 over 20 years. The TIF plan sets forth the policy objectives, geographic location, maximum budget for TIF revenues and expenditures and the planning document. It does not grant assistance to the developer. The location is 310 Third Street and the adjacent right-of-way and parking area on Second Street. This plan is to establish a redevelopment TIF district. The project qualifies for this based on the current site and building conditions. TIF can be used to pay for certain eligible project costs over the 26- year maximum duration. The maximum budget is $7.09 million. Revenues for this budget include tax increment and interest. Expenses include land/building acquisition, site improvements/preparation, utilities, other qualifying improvements and administrative costs up to 10%. The plan anticipates pay-as- you-go payments to the developer from TIF only – no other repayment is required from the city. The analysis shows project costs, expenses and financing meet industry standards. The project’s rents are consistent with third party market studies. The project does show a need for assistance to achieve feasibility. The projected return on investment with 26 years of TIF is higher than the land. Therefore, the TIF note has been reduced to $1,750,000 over 20 years. The analysis and negotiations confirm this assistance is necessary for financial feasibility, but is not over-subsidizing the project. The next step is EDA approval of the TIF district which was done tonight. The city council is holding this public hearing to approve the TIF district. We still need the TIF agreement to formally direct assistance to the developer and EDA on March 20, 2023. Certification of the district is required before June 30, 2023. Councilmember Bernatz appreciated the work from Mr. Aarsvold and staff. It seems like an exciting opportunity for a space that needs to have work done. There have been opportunities for this area and they have not happened. Mayor Hoyt stated each project has unique constraints. TIF is a tool we have to Council Minutes (Regular) February 21, 2023 Page 3 consider and look at the long-term impact on the residents. The project has been thoroughly vetted and is a good long-term investment. MOTION by Wilson, second by Bernatz to adopt RESOLUTION R16-23 adopting a modification to the Redevelopment Plan for the Downtown Redevelopment Project, establishing Tax Increment Financing District No. 15 – Ebert Downtown Housing, therein adopting a Tax Increment Financing Plan, therefore transferring certain projects to the Economic Development Authority of the City of Farmington and approving matters in connection therewith. APIF, MOTION CARRIED. 9. AWARD OF CONTRACT 10. PETITIONS, REQUESTS AND COMMUNICATIONS 11. UNFINISHED BUSINESS 12. NEW BUSINESS 13. COUNCIL ROUNDTABLE Bernatz: She is excited for the FHS cabaret performance this weekend. Dew Days button applications are being accepted. Porter: We are one month away from spring. Wilson: Congratulated John Powell for having the idea to have an engineering pool of skilled professionals to serve every facet of engineering projects. This was approved on the Consent Agenda tonight. He thanked Cindy Muller for her years of service to the City of Farmington. Gorski: Thanked Cindy Muller for her support and service. City operations will be closed on Thursday due to the weather. Public Works, Fire and Police will be out protecting us during the upcoming storm. She urged residents to not go out. She thanked the Lion’s Club for their invitation to speak at their event. Kuennen: Thanked Cindy Muller for her service. The visioning responses have been received and will be brought back to council. Powell: Thanked Cindy Muller for her assistance in always finding what he needed. He thanked the council for their comments regarding the consultant pool and he is happy to have those resources. We will be entering into a contract with the various consultants. The road grader is now back in service after having repair work done. Staff is working on a lot of reporting to various state agencies. The snow plows will be out at 3 am Wednesday and Thursday. Council Minutes (Regular) February 21, 2023 Page 4 Omlid: Residents received the Spring Currents in the mail last week. Registration is open for the Dew Run. Thanked Cindy Muller for her service. Regis: Thanked Cindy Muller for her service. The CIP software has been rolled out to departments and the CIP will be brought to council in June. Hoyt: Thanked Cindy Muller for her dedication and contributions to the city. Cindy Muller thanked council and management for the opportunity to serve the residents of Farmington. She has participated in many events over the years and made wonderful friends along the way. City employees are a work family, have each other’s backs and always ready to help. She asked that this tradition continues. Mayor Hoyt cautioned residents we have a snow storm on the way tonight through Thursday. Residents should take this storm seriously and do not travel. Do something at home rather than going out. Emergency services have to make a decision as to whether or not to go out when the weather is bad. Do not underestimate this storm. 14. ADJOURN MOTION by Wilson, second by Porter to adjourn at 7:41 p.m. APIF, MOTION CARRIED. Respectfully submitted, Cynthia Muller Cynthia Muller Administrative Assistant