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HomeMy WebLinkAbout01 17 12 meeting minutes 4646 Dakota Street SE Prior Lake, MN 55372 REGULAR CITY COUNCIL MEETING MINUTES January 17 , 201 2 CALL TO ORDER The meeting was called to order at 7 :00 p.m. Present were Mayor Myser, Council members Erickson , He d- berg and Keeney, City Manager Boyles, City Attor ney Pace , City Engi neer / In s pections Director Poppler, Community and Economic Development Director Rogness, Public Works/Natural Resources Director Ge h- ler, Fire Chief Hartman, Assistant City Manager Kansier, Assistant City Manager Meyer and Administr a tive A s sistant Green. Councilmember Souk up was absent. PUBLIC FORUM The Public Forum is intended to afford the public an opportunity to address concerns to the City Council. The Public Forum will be no longer than 30 minutes in length and each presenter will have no more than ten (10) minute s to speak. Topics of discussion are restricted to City governmental topics rather than pr i- vate or political agendas. Topics may be addressed at the Public Forum that are on the agenda except those topics that have been or are the subject of a scheduled public hearing or public information hearing before the City Council, the Economic Development Authority (EDA), Planning Commission, or any other City Advisory Committee. The City Council may discuss but will not take formal action on Public Forum present ations. Matters that are the subject of pending litigation are not appropriate for the Forum. Comments: No person stepped forward to speak. APPROVAL OF AGENDA MOTION BY KEENEY, S ECOND BY HEDBERG TO APPROVE THE AGEND A AS PRESENTED . VOTE: Ayes by Myser, Erickson , Hedberg and Keeney . The motion carried. APPROVAL OF MEETING MINUTES MOTION HEDBERG, S ECOND BY KEENEY TO APPROVE THE MINUTES OF THE JANUARY 3, 2012 MEETING AS PR E SENTED. VOTE: Ayes by Myser, Erickson , Hedberg and Keeney. The motion carried. CONSENT AGENDA City Manager Boyles reviewed the items on the consent agenda. A. Consider Approval of Invoices to be Paid B. Consider Approval of Building Permit Summary Report C. Consider Approval of Animal C ontrol Services Report D. Consider Approval of Fire Department Report E. Consider Approval of Resolution 12 - 006 Authorizing the Mayor and City Manager to Enter into a L i- censing Agreement with Scott County for Cost Sharing and Use of Oblique Aerial Imager y F. Consider Approval of Resolution 12 - 007 Approving a Temporary On - sale Liquor License for the Prior Lake - Savage Hockey Association G. Consider Approval of Revisions to Advisory Committee Bylaws Phone 952.447. 9800 / Fax 952.44 7 . 4245 / www.cityofpriorlake.com MOTION BY ERICKSON, SECOND BY HEDBERG TO APPROVE THE CO NSENT AGENDA AS PR E- SENTED. VOTE: Ayes by Myser, Erickson, Hedberg and Keeney. The motion carried. PRESENTATION Joe Wiita Recognition Public Works Director Gehler stated that Maintenance Superintendent Joe Wiita is resigning his position with the City to accept a new position with Scott County. Gehler provided an autobiography of Wiita’s e m- ployment with the City and described many of the programs in which he was instrumental in development. Mayor Myser presented an appreciation plaque to Wi i ta in recog nition of commitment and se r vice. Residential Survey – Dr. Bill Morris City Manager Boyles stated that Decision Resources conducted a residential survey late in 2011 with the purposed of learning the perspective of residents about existing and potential s ervices. Introduced Dr. Bill Morris and Peter Leatherman of Decision Resources. Morris presented survey results. Described the methodology and explained that 400 residents participated and findings are accurate to plus or minus five percent in 95 out of 100 cases. . Comments: Hedberg : Asked for an explanation of the accuracy of plus or minus five percent. Morris : Surveyors spoke with 400 random households across the City and every household had equal opportunity for participation as long as they ha d either a cell or landline phone. By having equal opportunity for every household to be reached and by randomly selecting who was spoken to in the household, there is confidence that results are within plus or minus five percent of an actual census of al l adults within the community. Keeney : Thanked citizens who agreed to respond to the survey. Called attention to question number 89 regarding safety noting that 40 percent of responses clustered around traffic, speeding or distracted driving. Commente d that the respondents are our neighbors and most of the drivers here live in the City and we should be aware that o ur driving is causing others to have concern. Stated that m ore attention to this topic may come from the Community Safety Advisory Committ ee as it had similar results on a recently co n- ducted safety survey. Noted that results on questions about economic development seem to support e f- forts that have begun in that area and helps him feel the Council is going in the right dire c tion. Erickson : Commented that he was called to participate in the survey, but declined as he felt his position as council member made it inappropriate. Spoke of results that referred to the sense of neighborhood , re s- idents feel ing that they can contact the City C ounci l and staff , and feeling empowered to make a diffe r ence. Morris : A ffirmed that the survey reveals that we have an engaged electorate and that a high percentage of persons who contacted staff reported a favorable experience. Survey also revealed that pe ople who were knowledg e able about City affairs rated the work of the C ity favorabl y . Erickson : Asked about comments made about recreational activities. Morris : Replied that the survey looked at community events which can tell a lot about how connected p eople feel to the community and a majority indicate d they attended a community event and think favor a bly of them. Participation in recreation programs is high and well thought of . Myser : Understand s there is more information with the survey, would like to know when it will be made available. Boyles: Replied people w ould be able to find survey results in its least detailed form on the City Website by tomorrow and Decision Resources anticipates a finalized document within 30 days. Decision Resources wil l also be invited to participate in a cable TV show. 2 DRAFT 01 17 2012 City Council Minutes PUBLIC HEARING No public hearing was scheduled. OLD BUSINESS No o ld b usiness was scheduled. NEW BUSINESS Consider Approval of a Resolution Assigning Development Agreement and Tax Increment Rev enue Note from Eagle Creek Development, LLC to Creekside 54, LLC. Community and Economic Development Director Rogness called attention to the City Estoppel Mem o- randum included with the agenda report stating it acknowledges certain facts about property at 16535 Tranquility Court SE. Stated that Eagle Creek is assigning interest , including the Tax Increment Financing (TIF) agreement, to a new business entity and the City Council must provide written consent in order for them to do so. Noted that the TIF ag reement has ongoing compliance requirements including that 20% of senior housing units must be rented to persons at or below 50% of income standards and it is a r equir e- ment that Creekside 54 continue to provide those ce r tifications. Comments: Hedberg : Believes an understanding of maintaining the 20% residency requirement is critical. Noticed that new ownership retains some of the original owners. Asked if the City has liability regarding the TIF to Premiere Development, which was a part of the origin al develo p er. Pace : Assumed that in requesting the assignment, Premier signed off on financing requests, etc. Stated that the City has not seen all of the documents , but the TIF is to be assigned to the new owner . Hedberg : Assuming that Premier Devel opment has different players than Central Development , those people are not going to benefit from any future TIF payments. Rogness : Researched State records which show that Premier Development, Inc. CEO is Larry Gensmer . He and Mesenbrink were the two p rimary persons involved in it. Nothing comes up in searchin g for Ce n tral Development Corporation of America . Was told that Gensmer is a party to that . Hedberg : Gensmer is an officer of Mesenbrink Construction and b elieves that the principal person of P remier remains involved in this transaction. Pace : Both Premier Development and Central Development are in business and the City could ask them for con sent or acknowledgment. Hedberg : Believes that would be appropriate because the City is shifting wh ere the TIF money is going to go. Keeney : Asked if this TIF is conditioned on maintaining a certain number of units as affordable hous ing and whether the City is verifying that . Rogness : Stated he queried F inance D irector Erickson if that has been done and she replied that to her knowledge there is nothing on file to verify income levels. The development corporation lists the specific units and the tenants of those units, but nothing to verify income levels. Believes that if the City chose to go furthe r , we could ask for verification of income. Keeney : Asked if the obligation to pay the note is conditioned on such compliance. Pace : Replied that the development agreement provides that they verify twice each year. Keeney : Commented he was s urprise d to find the City is paying interest on the note on the tax incr e ment at a rate of 7%, which makes it quite attractive to the develo p er. Rogness : Responded that it is fairly common to have an interest rate attached to the note. Keeney : Results are qui te dramatic and the City will have paid them double or triple what they are ha v ing abated in taxes. Cit y should be very transparent going forward about the total benefit to the developer. Pace : Exhibit C to the development agreement is a note with a p rovision that says the City’s payment o b- ligation shall be conditioned on receiving a compliance certificate. 3 DRAFT 01 17 2012 City Council Minutes Keeney : Concerned about granting approval retroactively as he does not want the City to have a reput a- tion of that being acceptable. Believes i t is entirely fair to ask for additional documentation showing the City has release from previous parties as part of a condition of our approval of reassig n ment. Erickson : Agreed th e City should be indemnified. Commented on persons who set up multiple c orpor a- tions with no legal connection to each other and stated he s ee s no problem with the City withholding a p- proval until compliance assured. Believes the City is not indemnified for changes from this action and such a ction might be preventing someone fr om collecting monies they expected to collect and they might come forward to demand such m o nies. Myser : Believes this acceptance could be conditioned with proof that this has been taken care of by staff. Asked if certification is simply that the owner o f the property states there are individuals who are eligible and it is not verified by a third pa r ty. R ogness : Replied that c ertification is provided by the manager representing the property which identifies the unit and resident s who meet the criteria . There is no third party certification . Myser : Asked if there is any mechanism whereby they would have a responsibility to allow us to look at documentation to prove verification. Hedberg : Referred to Section 3.3 section regarding compliance. Believe s it is the City’s option to ask for more verification. Myser : Would like to see spot checks on verification as it is a ppropriate to step in and verify that the ev i- dence being presented is true and correct. Boyles : Stated that Council could adopt a mo tion approving the transfer subject to receiving consent and acknowledgement from both Premiere and Central, as well as verification of senior housing requirements. Pace : Commented that the second part seems like an audit of what they are certifying to us . Question ed who would pay for it. Noted that it could be a condition of assignment. Myser : Clarified that they would have responsibility to provide third party proof of compliance. Pace : Believes that c ould be worked out. Would want the third party conducting the audit to have a fid u- ciary responsibility to the City. Keeney : Should make approval of the assignment subject to verification and consent. Staff could be d i- rected to require an audit. The agreement states the developer will establish the m onitoring procedures so he believes that means they would pay for it. Hedberg : The TIF was granted to assure there was housing for low and moderate income seniors and now the City w ant s to assure that is happening. Agree d language covers it and staff s hould direct an audit periodically . Myser : Questioned a reasonable time frame to report back to the Council. Rogness : Replied there are not many units to monitor and something could be quickly devised to set up ongoing monitoring requirements. Believes feedback could be provided in 30 days. Pace : Stated we n eed to learn if the original developers have assigned interest and released the City from obligations to them . Erickson : Concurred adding that the second company must indemnify the City against any claims. Pace: Noted that b y assignment, the new company steps into shoes of old and the development agre e- ment goes with it. Read indemnification clause. The n ew company will be held to the provisions of the agreement. MOTION BY HEDBERG, SECOND BY KE ENEY TO APPROVE RESOLUTION 12 - 008 ASSIGNING D E- VELOPMENT AGREEMENT AND TAX INCREMENT REVENUE NOTE FROM EAGLE CREEK DEVE L- O PMENT, LLC TO CREEKSIDE 54, LLC AMENDED TO SAY THE CITY WILL RECEIVE A RELEASE FROM EAGLE CREEK DEVELOPMENT, LLC AND CONSENT BY CREEKSID E 54, LLC. VOTE: Ayes by Myser, Erickson, Hedberg and Keeney. The motion carried. 4 DRAFT 01 17 2012 City Council Minutes MOTION BY HEDBERG, SECOND BY KEENEY TO DIRECT STAFF TO DETERMINE WAYS TO TIG H- TEN UP THE CERTIFICATION PROCEDURE OF LOW OR MODERATE INCOME TO HAVE PERIODIC SPOT AUDITS AN D COME BACK TO THE COUNCIL WITH METHOD FOR IMPLEMENTING IT IN 30 DAYS. Erickson : Commented that additional TIF agreements have such provision and queried whether the m o- tion addresses only this property. Hedberg : Confirmed he is making the motion just f or this property. Keeney: Added that the motion includes nothing to prevent staff from providing information about other TIF properties with similar conditions . VOTE: Ayes by Myser, Erickson, Hedberg and Keeney. The motion carried. Pace: Asked if Co uncil wants the assignment document in place before the City makes pa y ment. Myser : Yes . OTHER BUSINESS Community Events Erickson: commented on attendance at salsa dancing. Dances are a lways the first Thursday n ight of the month. Paid for with Librar y funding. Hedberg : Announced promotions made in the Fire Department : Rick Steinhaus as Assistant Fire Chief and Joe Zieska and Mike Kilanowski as Captains . Congratulated them. Boyles : Commented that ,h istorically, the F ire D epartment used an election process . Recently, seeking to have the best staff and leadership, the Fire Chief put together job descriptions, solicited a p plications, co n- ducted interviews and made selections. Myser : January 21 is Hockey Day in Minnesota. Recognized ISD #719 Teacher s of the Year. Wished all viewers an early Valentine’s Day as he will not be in attendance at the next Council meeting. ADJOURNMENT With no further comments from Council members, a motion to adjourn was made by H edberg and seconded by Ke eney . With all in favor, the meeting adjourned at 8:09 p.m. ___ _______________________________ ________________________________ Frank Boyles, City Manager Charlotte Green, Admin. Assistant 5 DRAFT 01 17 2012 City Council Minutes