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HomeMy WebLinkAbout11.07.88 Council Minutes MINUTES COUNCIL MEETING REGULAR NOVEMBER 7, 1988 1. Mayor Kelly called the meeting to order at 7:00 P.M# Members Present: Donaldson, Galler, Kelly, Mayer, Sprute. Members Absent: None. Also Present: Administrator Thompson, Attorney Grannis. 2. MOTION by Galler, second by Mayer to approve the agenda with the following changes: a. Remove discussion of the Maintenance Worker hiring. b. Remove approval of the Police Department Radios from the consent agenda. c. Add discussion of the upcoming airport meeting. APIF, MOTION CARRIED. 3. It was the consensus of the Council to approve the minutes of the October 11, 1988 special meeting and the October 17, 1988 regular meeting. 4. MOTION by Kelly, second by Sprute to approve the setting of a public hearing for November 21, 1988 at 7:30 P.M. to consider amending Title 10-6-14 of the Zoning Code relating to landscaping. APIF, MOTION CARRIED. 5. MOTION by Mayer, second by Donaldson to approve setting a public hearing for November 21, 1988 at 7:45 P.M. to consider the 1989 On-Sale Liquor, Special Sunday and Club License applications. APIF, MOTION CARRIED. 6. MOTION by Kelly, second by Galler to set a public hearing for November 21, 1988 at 8:00 P.M. to consider the Celebrate Minnesota 1990 Grant program. APIF, MOTION CARRIED. 7. MOTION by Kelly, second by Sprute to adopt RESOLUTION NO. R77-88 approving an application for Dakota County Landfill Abatement funding. APIF, MOTION CARRIED. 8. The Council next considered the certification of delinquent municipal accounts. Concern was expressed regarding the growing number of accounts and questions were raised regarding interest and/or penalty charges could be increased. MOTION by Mayer, second by Sprute to adopt RESOLUTION NO. R78-88 certifying the delinquent accounts for taxes payable 1989, and retaining the option to change the interest and/or penalty charges. APIF, MOTION CARRIED. 9. Mayor Kelly opened a public hearing at 7:30 P.M. to consider amending Title 10-6-5 of the Zoning Ordinance relating to accessory storage buildings. Administrator Thompson stated that the Planning Commission had recommended allowing accessory storage buildings in the commercial and industrial areas as a conditional use. Mr. Thompson stated that presently accessory storage buildings are not permitted, which has caused problems for certain uses which are not allowed by State codes to store gasoline products in the principal structure. Councilmember Mayer suggested that the proposed ordinance include the same minimum standards for the commercial and industrial areas as residential areas. Mayor Kelly closed the hearing. MOTION by Galler, second by Mayer to adopt ORDINANCE NO. 088-210 amending Title 10-6-5 of the Zoning Ordinance by allowing accessory storage buildings as a conditional use within the commercial and industrial areas with the aforementioned change. APIF, MOTION CARRIED. 10. The Council tabled the request to release the Whispering River Surety until staff has determined there are no outstanding accounts receivable on the proj ect. 11. MOTION by Kelly, second by Sprute to approve the Police Officer's hiring procedure as recommended.by the Police Chief in the agenda package. APIF, MOTION CARRIED. 12. Mayor Kelly opened a public hearing at 7:45 P.M. which was continued from October 17, 1988 to consider the establishment of Economic Development District No. 1 and approve a tax increment finance (TIF) plan. Administrator Thompson outlined the proposed district and tax increment financing plan as stated in his November 3, 1988 memo. The following testimony was given. Larry Thompson: The action required this evening is to establish the district and approve the TIF Plan. How large is the expansion? It will double the plant size and add a minimum of 20 jobs. Mayor Kelly: Jim Romberger: Councilmember Mayer: Are there any legal problems with the purchase of the property from Dar-Lin and subsequent sale to Duo Plastics, Inc. since the principal owners of Dar-Lin also own Duo Plastics. Att. Grannis: Nothing that I am aware of. Adm. Thompson: It is my understanding that if the price is not inflated it is legal. The Council is not committing to anything until the developer's agreement is approved and signed. Before the Council approves the agreement, I would obtain a Bond Counsel's opinion which would address the sale. Cm. Sprute: Adm. Thompson: I am concerned about the surety. As noted in my memo, the City cannot require any surety, even an assessment agreement, if a tax exempt issue is used to finance the project. If the project is financed by a taxable bond issue or internal financing, the Council could require surety in several forms. Without surety, the Council would have to weigh the risk of potential default against the added tax value and jobs. Cm. Sprute: I am not sure the City should finance the project with its own funds. Adm. Thompson: It appears that there are sufficient funds to finance the project. By not having to issue bonds, the project would not have to pay the entire amount of capitalized interest or issuance costs, which could be directly applied to the project. In addition, the City could require surety on the project. I would not recommend using City funds, however, until the Finance Director has reviewed the matter. Cm. Sprute: What if we have to borrow because of a cash shortage? Adm. Thompson: The loan would be similar to a long term City investment. While the City would have to pay interest on the money, it would still be accrumg interest on the outstanding project funds. Cm. Mayer: The City can require surety on both internal financing and taxable bonds, but not tax exempt bonds. Adm. Thompson: Cm. Donaldson: Yes. I am in favor of the project because of the potential increase in jobs and the tax base. Adm. Thompson read a letter from Dakota County dated August 22, 1988 objecting to the use of TIF funding for this project. Adm. Thompson: Based on the information I have recently received, I would recommend the following changes in the resolutions: 1. Change item H to state "The project will be funded either through the sale of tax exempt G.O. Bonds, taxable G.O. Bonds, or with City funds." 2. Exhibit B be amended to specifically state the types of improvement costs, and account for the potential use of internal financing and taxable bonds. Mayor Kelly closed the public hearing. 13. MOTION by Mayer, second by Donaldson to adopt RESOLUTION NO. R79-88 establishing Development District #1. APIF, MOTION CARRIED. 14. MOTION by Donaldson, second by Kelly to adopt RESOLUTION NO. R80-88 approving the Tax Increment Finance Plan for Development District #1. APIF, MOTION CARRIED. 15. The Council directed staff to prepare a developers agreement and seek bond counsel's opinion on the project. 16. The Council next reviewed an update on the solid waste processing facility and 1989 Solid Waste Operating Budget. Solid Waste Coordinator Williamson reviewed the operations of the plant. It was the consensus of the Council that it meet on November 16, 1988 at 7:00 P.M. to discuss the Solid Waste Budget. 17. MOTION by Kelly, second by Mayer to adopt RESOLUTKNND. R81-88 to approve the mutual aid agreement with the Metropolitan Airport Commission relating to fire personnel and equipment. APIF, MOTION CARRIED. 18. MOTION by Donaldson, second by Kelly to approve the consent agenda as follows: a. Approve Pay Estimate #2 - Project 88-2 - $100,112.14. b. Approve trip to tour recycling project - Solid Waste. c. Approve request to attend LMC Policy Adoption Meeting - Administration. d. Approve School and Conference Request - Police Department - Data Practices and Law Enforcement. e. Approve Capital Outlay Request - Fire Department - Breathing Apparatus - $2,367.15. f. Approve payment of the bills as submitted. APIF, MOTION CARRIED. 19. Councilmember Galler noted that the Capital Outlay Request to purchase handheld radios indicated that the purchase would be funded by deferring improvements to the computer. Police Chief Siebenaler stated that he would not place as much emphasis on the computer at this time, but rather on the operations of the Department. MOTION by Sprute, second by Donaldson to approve the purchase of a handheld radio for the Police Department - $757.00. APIF, MOTION CARRIED. 20. Administrator Thompson informed the Council that there would be a meeting at the DAVTI on November 9, 1988 at 7:00 P.M. on the proposed expansion of the international airport and possible construction of an airport in Rosemount. Councilmember Donaldson stated that he would attend. 21. During roundtable, the following items were discussed. a. The success of the Halloween walk was noted. b. Councilmember Donaldson will review "commendation" form to be presented to the youths who assisted the person whose costume had caught fire on Halloween night. 22. MOTION by Sprute, second by Mayer to adjourn at 9:30 P.M. CARRIED. APIF, MOTION Respectfully submitted, Larry Thompson City Administrator Approved ~ :Y7r 11- 2\- 1>~