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HomeMy WebLinkAbout08 08 16 City Council Minutes 1 4646 Dakota Street SE Prior Lake, MN 55372 REGULAR CITY COUNCIL MEETING MINUTES August 08, 2016 CALL TO ORDER The meeting was called to order at 7:00 p.m. Present were Mayor Hedberg, Councilors Keeney, Morton, McGuire and Thompson, City Manager Boyles, City Attorney Schwarzhoff, Assistant City Manager Olson, Finance Director Uram, Public Works / Natural Resources Director Gehler, City Engineer / Inspections Director Poppler, Community / Economic Development Director Rogness, Police Chief Elliott, Recreation Coordinator Barstad, Planner Matzke and Executive Assistant Schroeder. PUBLIC FORUM City Manager Boyles reviewed the process for the public forum and explained that items sched- uled for public hearing or items for which a public hearing has been held but no final action taken, are not eligible for discussion on the public forum. Kim Churchill, 16209 Evenston Ave SE: Stated a basic economic fact is that the world, nation, state, county, and city populations are growing. Suggested that the City needs to either plan for this inevitable growth or find a way to get the money needed for the future needs of the City. Stated there should not be a zero tax increase because it is a basic fact that items cost more overtime. Noted that she lived in Ohio where the city did not do a strategic plan and the city failed to be a pleasant place to live in. Stated we live in a society that prompts growth and if the citizens of Prior Lake do not want to grow the tax base then individuals will have to pay more in taxes. Concluded that she is appalled that people do not understand that growth cannot be stopped as it is a basic economic concept. Curt Hennes, 17286 Sunset Trail SW: Stated garbage haulers go by his house six times a week. Suggested the council request a simple study to show how having only two or three garbage haul- ers would benefit residents cost for garbage and the reduction of heavy trucks on the city streets. AP PROVAL OF AGENDA MOTION BY MCGUIRE, SECOND BY THOMPSON TO APPROVE THE AGENDA. VOTE Hedberg Keeney McGuire Morton Thompson Aye ☒ ☒ ☒ ☒ ☒ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ The motion carried. APPROVAL OF CITY COUNCIL MEETING MINUTES MOTION BY THOMPSON, SECOND BY MORTON TO APPROVE THE MINUTES OF THE JULY 25, 2016 REGULAR MEETING AS PRESENTED. VOTE Hedberg Keeney McGuire Morton Thompson Aye ☒ ☒ ☒ ☒ ☒ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ Draft 08 08 16 City Council Meeting Minutes 2 The motion carried. CONSENT AGENDA City Manager Boyles reviewed the items on the consent agenda. A. Consider Approval of Claims Listing B. Consider Approval of a Resolution 16-097 Authorizing the Execution of the City's Stand- ardized Contract for 2016 Sanitary Sewer Televising C. Consider Approval of a Resolution 16-098 Accepting Bids and Authorizing the Execution of the City's Standard Contract for the Purchase and Installation of Playground Equipment at Eagle Brook Park D. Consider Approval of a Resolution 16-099 Identifying the Need for Funding to Complete the 2040 Comprehensive Plan Update and Authorizing an Application for Planning Assis- tance Grant Funds to the Metropolitan Council E. Consider Approval of a Resolution 16-100 Waiving Platting Requirements for Property Located on Edinborough Avenue MOTION BY MCGUIRE, SECOND BY THOMPSON TO APPROVE THE CONSENT AGENDA The motion carried. PRESENTATIONS 6A New MVTA Route 495 Service to Mall of America Presentation MVTA Customer Relations Manager Robin Selvig presented on this topic dated August 8, 2016 McGuire: Stated this is a great example of a public and private partnership between MVTA, City of Shakopee, City of Prior Lake, and RiverSouth which is made up of Mystic Lake, Valleyfair, Re- naissance Fair and Canterbury Downs along with Amazon being a partner to this and good coop- eration from legislators and the Metropolitan Council for funding. Hedberg: Stated he is excited that suburb-to-suburb service is being given a second go-around. Keeney: Asked where is the funding source coming from to the suburb-to-suburb service. Selvig: Replied that the 2015 legislation allocated two-million-dollar to the Suburban Transit As- sociation. Stated $300,000 was used for service off of Highway 169 so there is about 1.7 million dollars left for this project. Keeney: Suggested the employers need to commit to the last mile; he believes it is a great bene- fit for the employers providing for their employees. Asked what happens if employers do not agree to pay for the last mile. Selvig: Responded that MVTA is looking at other options with the local Shakopee transportation because not completing this project is not an alternative. Added that the former Mayor of Shakopee, Brad Tabke, is assisting with this last mile of development and he has many great con- tacts they are hoping to leverage. PUBLIC HEARINGS 7A Public Hearing to Consider Approval of the 2014-2021 Capital Improvement Program (CIP) and Street Reconstruction Plan VOTE Hedberg Keeney McGuire Morton Thompson Aye ☒ ☒ ☒ ☒ ☒ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ Draft 08 08 16 City Council Meeting Minutes 3 Finance Director Uram, City Engineer Poppler, Public Works / Natural Resources Director Gehler presented on this topic dated August 8, 2016 Thompson: Asked what the current debt is. Uram: Responded the debt is 45 million dollars. MOTION BY MCGUIRE, SECOND BY KEENEY TO OPEN THE PUBLIC HEARING AT 7:52 P.M. The motion carried. Kurt Briggs, 14914 Lori Road SE: Asked the City not to increase the debt for the projects in the CIP. Stated current tax payers are already paying 3.5 million dollars a year in debt and to increase the debt further places tax payers on an untenable path for 2017 and into the future. Explained when he purchased a house over 17 years ago in Prior Lake he was busy working and raising a family so he trusted the City Council decisions creating tax rates that would reflect appropriate adjustments. Added in 2016 the average age in Prior Lake is late 30s and these people face more challenges of economic headwinds than his family has. Stated the residents have had a 17% tax increase in the last two years and the education referendum looms close. Suggested by 2020 Minnesota will have more residents around the age of 65 than children. Stated it is no longer the retirees on a fixed income and there is no revenue capacity to further increase our debt. Concluded by asking the City Council to not increase the City debt because it puts us on an unsustainable path. Kim Churchill, 16209 Evanston Avenue SE: Stated in 2008 there was a step back in the budget because of the economic downturn. Asked if that has been recouped up to the level we had in 2008. Wes Mader, 3470 Sycamore Trail: Stated he attended the CIP public hearing one year ago and objected the plan of an 80% in City debt over a four-year period. Added that plan included 60 million dollars in transportation projects in which the City planned to pay for 37 million dollars. Explained that he thought it was a bad idea but it was passed with a 3-2 City Council vote. Stated the new proposed CIP tells an opposite story from what was shown a year ago with al- most a 20% decline in debt balance over the next two years in which he finds odd but says thank you but believe more work needs to be done. Asked for items that are unwanted and un- needed to be removed. Reminded the City Council that they work for the residents not the Met Council, the County nor special property owners. Suggested the Arcadia extension should be eliminated because he is unaware of any residents in favor of the project that ruins wetland and a residential street. Suggested the closure of Main Street be eliminated because 25 downtown business owners responded to a survey and none of them supported the closure. Asked that City dollars should be used to fix up the crumbling streets and do not borrow more to increase traffic speed into the city. Thanked the City Council for their service. Zack Braid, 14086 Rutgers Street NE: Asked the council to be conscious of the tax environ- ment that is being created for the residents and businesses. Stated in the past two years the City has raised the taxes 16.5% resulting in 8 million dollars in debt. Stated the City has been raising taxes at an unsustainable rate. Stated the CIP needs to be combed through with two ma- jor road projects at Highway 13 and County Road 42 and the 150th Street and Highway 13 which has gone over budget. Suggested the City should slow down and have a plan to work with the residents and the businesses before going forward with projects. Stated taxation and VOTE Hedberg Keeney McGuire Morton Thompson Aye ☒ ☒ ☒ ☒ ☒ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ Draft 08 08 16 City Council Meeting Minutes 4 debt accumulation at this rate is not good. Commented it is a burden to the residents who live here and businesses that have made their investments here. Asked how these levies are palat- able to potential residents and attractive to businesses looking at our City. Concluded that the City must do a better job at managing the tax increases and debt increases. Dave Thompson, 15738 Island View Road NW: Stated that planning is a good thing and it is good for the City to be proactive but the presented CIP can be hard to swallow. Explained he has been in the City for 14 years as a double income family and had to downsized a couple years back due to the economy. Added when the County and City taxes go up along with the school referendum and affordable healthcare act increase he has many additional costs with re- ceived a pay increase. Believed he is not the only middle-aged-double-income family trying to cut costs who lives in the City of Prior Lake. Asked the council to take a step back and look at what is being proposed to view the true needs verses the wants to squeeze out a little here and there to help the residents in our community. Liz Weninger, 2591 Spring Lake Road: Asked who is driving the Arcadia intersection as she does not agree with this intersection. Stated the only time she sees Highway 13 and County Road 21 intersection backed up is during rush hour. Believed that the downtown area should be left alone. Agreed that the storm water areas need to be cleaned up because they are getting nasty. Sandi Fleck, 5425 150th Street SE: Noted she is the President of the Prior Lake Chamber. Stated the Prior Lake Chamber promotes every resident to shop local and shop often, a cham- ber duty is to inform and share important events and issues to chamber members. Advised that the chamber does not offer solutions or opinions with City decisions. Stated the chamber wants to make sure that commerce is coming to the City and the council needs to research and study prior to voting what is best for the City. Requested information to be sent to her so she may pass it along to businesses. Pat Heaney, 4642 Pleasant Street SE: Stated issues around the CIP have had seeds planted up to 30 years ago and he has witnessed and has been a part of discussions. Stated the ele- phant in the room is the Town Center in Transition (TCT) presented in either 2004 or 2009. Commented when the overall concept of TCT was to inform residents on upcoming issues at City Hall. Stated in 2011 he talked with a lawyer in this field saying roadways for economic de- velopment was illegal. Noted the CIP has a 15-million-dollar plan for the Arcadia and Pleasant Street project’s next step. Explained a year ago he asked for three things: to rescind the TCT to stop the zoning that drops the property value for over 55 homes; open workshops with clear and open notes; for the CIPs to become more user-friendly and complete. Stated last year the coun- cil said these questions would be addressed and considered but nothing has happened. Com- mented that Prior Lake needs two eyebrows around the downtown area, the lack of a big picture view is disturbing; true comparison for a final cost for Duluth verses Arcadia have never been laid out or talked about. Added that a council member stated that Pleasant can handle the traffic better than Duluth. Concluded that the money should stopped being spent, change the TCT or- dinance to allow the historic homes to be improved and let businesses grow organically. Jim Weninger, 2591 Spring Lake Road: Stated it is hard to accept a smooth CIP over the next couple of years because bumps need to be planned for. Explained as a facility manager he has experience with planning budgets and capital plans which never stick to the plan by the end of the year. Advised the City needs to plan for budget flexibility, for emergencies and it is hard to plan for something three years out because you do not know what will happen from now until then. Explained he has been at the Arcadia meetings and the County has traffic problems that need to be addressed but there was a town built around that road which cannot just be moved for a bigger road. Believed the downtown project will ruin its historic/small town feel and Prior Lake has already taken down too many historic buildings. Ron Wolf, 4612 Pleasant Street: Commented that the intersection of Arcadia and County Road 21 is 100’ away from Colorado so there is not room for a light to be put in. Believed that Draft 08 08 16 City Council Meeting Minutes 5 the City is only feeding residents a little bit of the plan at a time. Stated if Main Street is closed off Pleasant Street is not going to help get customers to the businesses at all. Mike Rothmeyer, 6340 150th Street: Asked that road projects be put on hold. Invited the coun- cil to visit his property to see how his flat driveway is now a huge wall. Stated the council is not listening to the citizens who want peace and quiet. Stated the council votes 3-2 vote is always girls against boys. Suggested people should consider the women’s point of view and he would like to see items pushed out a year to look at things intelligently. Stated in his own business he has to listen to what people want to provide employment and long term success. Glen Newwork, 16672 Creekside Circle: Stated the current streets should be repaired be- cause the roads are horrible instead of starting new street projects. Explained there was a storm sewer that was washed out and he had to call the City to come and fix it. Stated he does not think connecting the south and north parts of Prior Lake are going to accomplish anything. Woody Spitzmueller, 4279 Grainwood Circle: Stated he does not understand how the plan on Arcadia will benefit Prior Lake. Added he believes the issue is Highway 13 and there will be stacking issues due to single timing. Asked for traffic counts on County Road 21 and Highway 13. Questioned what the progress of routing traffic on Highway 13 onto existing County Road 17. Lloyd Erbaugh, 17291 Marshfield Lane: Stated residents in this town think that the CIP is a document chasing growth. Asked if the council and staff agree. Commented that there are many proposals in place for road repairs, changing technology and replacing infrastructure which sounds good. Requested if there is a metric to see if resurfacing roads improves quality. Asked if this will help the City catch up or fall behind. Asked if the new technology means the City can hire fewer people or what are the consequences. Stated the City is cutting services in many ar- eas but it is hard to know what that is, it would be nice to have a metric to show residents. Asked if there is a timeline for replacing the old maintenance shop and what costs are included in that plan. Stated Emerald Ash Bore has infected the City but there is only $20,000 for 2017. Asked if there is anything that can be done to increase these funds because he thinks the City may fall behind. Stated there is no integration of the Personnel Plan and what the department heads are saying they need to provide. Thanked the council for adding two people this year but there is no addition next year and the council should consider one person in 2018. Questioned how that is sensible and how does the Personnel Plan fit in with those other proposals. MOTION BY MCGUIRE, SECOND BY THOMPSON TO CLOSE THE PUBLIC HEARING Keeney: Requested the public hearing remain open in the event changes are made to the CIP giving residents another option to speak. WITHDRAWL OF MOTION BY MCGUIRE, SECOND BY THOMPSON TO CLOSE THE PUB- LIC HEARING Hedberg: Noted that Briggs stated the debt should go down; stated the debt level is projected to be lower during the period of the CIP than it is in 2016. Asked Uram to explain why the debt spiked in 2016. Uram: Responded the spike in debt is caused purely by the refunding of the 2007 water treat- ment plant funds so in 2015 we issued 5.4 million in refunding bonds which was put into escrow until December 15, 2017. Explained debt will decrease by 5.4 million dollars on that day in addi- tion in 2016 there is about 1.6 million dollars in water treatment plant bonds that were refunded this year as well that gives us another 1.6 million dollars in escrow counted as debt but will be paid out on December 15, 2017. Approximately 7 million dollars in debt will disappear on that day. Hedberg: Responding to the speaker who mentioned it looks odd that the debt could decrease, in addition to what Uram indicated the spike up was not real it was related to refunding which Draft 08 08 16 City Council Meeting Minutes 6 saves the City a lot of money. Added that the council has shrunk the scope of the CIP, as an ex- ample the Raspberry Ridge project. Stated projects have been deferred as well. Answered Churchill who asked if the City has caught up with the significant drops in 2008; he states the tax levy declined per household by 13-14% from 2008-2012. Stated the City used reserves to ease the tax burden but with the increases from 2015-2016 the tax levy per household is just about at the inflation increase over that eight-year period of time. Added the number of house- holds will increase by 2-3%. Keeney: Stated one of the reasons the tax levy was decreased was not related to decreasing the spending but rather the fund balances at that time. Added the City decreased the fund re- serves back to a range that was discussed. Hedberg: Responding to comments regarding the Arcadia extension, the EDA has been work- ing with a downtown development guide that was prepared in the late 90s which identified that Main Street would have to be closed to through traffic. Explained the state, county and city fully endorsed the 2005 corridor study looking at a 30-year window and the intersection would be constructed. Stated the City, County and State are in this together as collective governments. Noted the last new building in downtown Prior Lake was opened in late 2007; there is not devel- opment because people are concerned about how the traffic concerns will be addressed. Stated it is almost a decade later and the City cannot give an answer. Noted there is no parking and the only way the City can get parking is through development. The City and residents are collec- tively freezing development of our downtown. Keeney: Stated the County is planning for a 2019 intersection reconstruction, the City will need to decide soon. Asked what needs to be done to access the south side of downtown from High- way 13. Believed it is time to make a decision. Thompson: Spoke to a county commissioner last week who said the County is not driving this and if the City felt like they wanted to postpone or push back that the County would be fine with that. Stated the City can have a big impact on when and how it can be done. Added that people do have their head wrapped around downtown and should have a say in it. Noted she has not spoken to anyone who wants this project. Added she is concerned people will speed past down- town as a commuter road. Stated she does not want to destroy a historical neighborhood either and it is a bad idea. Keeney: Asked Thompson if she thinks the whole intersection is a bad idea or just the Arcadia portion. Thompson: Responded that Highway 13 should be a four lane road and putting a light at Arca- dia should be enough if Main Street is closed. Stated she does not want to invite more traffic onto County Road 21. Hedberg: Responding to Heaney regarding the TCT ordinance has been discussed and will be addressed. Noted the CIP is not chasing growth because 95% is repairing and reconstructing what the City already has. Added the only things that are new are two neighborhood parks and two road projects. Stated the council responds to the market and he does not believe a local government is to make or break the market. Asked for traffic counts on Highway 13 and County Road 21. Poppler: Stated he only has counts from 2013 which are 14,300 going back to 2003 it was around 10,000. Boyles: Asked if there are metrics reflecting road conditions. Gehler: Stated a rating is done every three years and the City is working on going through that analysis from 2011-2012. Added staff will then take the readings and complete the full analysis over the next year. Hedberg: Explained that the City has learned streets with proper maintenance should last 50- 60 years and the new maintenance plan will save everyone a ton of money. Agreed that streets are not in good condition and the City is trying to chip them off bit by bit with constructing two miles of road repairs each year. Asked if the old maintenance shop should be included in the CIP. Draft 08 08 16 City Council Meeting Minutes 7 Gehler: Responded staff has not planned for the replacement and has not talked about major repairs. Added staff is doing a space analysis which will help determine what is actually needed. Hedberg: Asked Boyles to address the Personnel Plan question. Boyles: Stated eight major plans provide for the maintenance, upgrading, and building of infra- structure to maintain. Added the maintenance is done by people as well as the equipment and supplies they need to accomplish the work so the CIP needs to include people. Explained the Personnel Plan was created this year to do this but right now there is not a complete integration because the plan needs be developed to a greater extent to be more precise with the necessary metrics to increase the confidence level in the plan. Hedberg: Stated the council has had serious discussions to increase staff but there is a great hesitation because adding staff results in more taxes. McGuire: Asked if the council is to direct staff with changes so the council can adopt the plan in two weeks. Boyles: Responded it would be helpful if council stated the modifications that should be made. McGuire: Stated he is fine with moving the County Road 21 bridge deck replacements to 2019 which aligns with the County’s plans. Hedberg: Added the County Road 21 and 87 can be moved to 2020 to align with the County’s plans. Morton: Stated she is not a fan of the Arcadia project going through a resident neighborhood and would rather have Duluth expanded. Commented there is most likely infrastructure that needs to be replaced but suggested use more of the money to address the EAB issues because there is nothing in the plan beyond this year. Asked staff to look at equipment and see if things can be moved around to address what is really needed. Thompson: Stated there is a drop in debt but the debt is still high at 45 million dollars. Uram: Stated in 2016 projected year end is about 42 million dollars and in 2017 with the payoff of bonds the debt drops to 31 million dollars then in 2017 the City has about 6.2 million dollars in new debt bringing the City to 37 million dollars. Thompson: Agreed new debt should not be added until the City gets to the 31-million-dollar mark. Suggested if the City has to increase taxes to pay for the debt payments, there is some- thing that is not financially sound in that. McGuire: Requested staff to provide comparison information of other developing cities. Thompson: Responded that she is ok with researching other cities but if other cities are doing something wrong it does not mean Prior Lake should follow suit. Requested demographics to be addressed because with an aging population it can have a major impact. Hedberg: Explained if the City were to issue no debt and cancel all projects, the City would be putting off 2-3 million dollars of street projects and that relates to existing neighborhood streets. Stated ten years ago the City had horrible streets when projects were differed for two years and when you can borrow money at a lower rate of 2% the future benefits from that. Keeney: Asked if this includes all the equipment and funding sources. Uram: Responded this includes everything but the park referendum. Keeney: Stated the transportation plan stops having details after five years and does not say which roads nor any expansion projects after 2021. Explained the population has been increas- ing which dilutes away the level of service due to more residents, streets, and acres of parks. Added there have been some large facility and transportation projects which are expensive which leaves less money for taxes and once you have something built there is an expectation that it will be maintained forever. Stated the park trail plan is not to a point where it can be funded. Stated the County Road 42 and Highway 13 as well as the County Road 21 and High- way 13 projects are coming up in the next couple of years which will hold the City over for a long time and he would like to slow down on road expansions in Prior Lake. Agreed with Hedberg that reconstruction and rebuilding of streets needs to continue. Stated he agrees with a right-in and right-out on Pleasant and do the rest when development comes. Added that Rolling Oaks seems to be developer driven which he supports. Draft 08 08 16 City Council Meeting Minutes 8 McGuire: Noted if you close Main Street and only have a right-in and right-out on Arcadia it would kill the downtown businesses south of Main Street. Stated Arcadia and Pleasant should connect and he is concerned with safety because Colorado cannot take on all the traffic. Sug- gested when houses in this area go up for sale, the City needs to seriously consider purchasing them. Thompson: Stated she does not care if the debt can be borrowed at zero percent, the City would still have to pay back the debt which straps your finances. Suggested taking the large debt and putting it on the next generation is not fair. Stated the City spent too much money last year so the consequence for spending is pushing off maintenance for one year. Added that Highway 13 and County Road 21 should be left alone until a committee can be put together to work with staff for a plan design that can be sold to the community. McGuire: Explained the money has already been spent on plans for this and the people he talks to he gets a different response because he asks two questions: do you want to close Main Street, most people answer no but then he asked if you have to close Main Street should the City put something else through like Arcadia and they response yes. MOTION BY MCGUIRE, SECOND BY THOMPSON TO CONTINUE THE PUBLIC HEARING AT THE AUGUST 22, 2016 CITY COUNCIL MEETING The motion carried. RECESS Hedberg declared a recess at 9:42 p.m. for the City Council Chambers to clear. RECONVENE Hedberg reconvened the meeting at 9:45 p.m. 7B Public Hearing to Consider Approval of a Resolution Approving a Business Subsidy, Tax Abatement and Business Subsidy Agreement for Versatile Vehicles Community / Economic Development Director Rogness presented on this topic dated August 8, 2016 Hedberg: Stated the EDA recommended granting the loan and recommended the approval of abatement for this project. McGuire: Asked why a Tax Increment Financing (TIF) is not being used. Rogness: Responded that the staff started a TIF which is nine years rather than fifteen years and the process for tax increment takes much longer. Added the public hearing requirements have a longer lead time along with needing time for the County and School District to comment. Added Versatile Vehicles is vacating an existing building in Savage so the TIF timeline does not allow them to do any work on the new property. McGuire: Stated he is disappointed that the School District and the County get to back out since they do this for other cities. Rogness: Suggested the City can send messages to the County pressing the issue. Morton: Stated if land is taken out of the picture and only focus on the improvements, what is the City obligation on the abatement. Rogness: Responded it would be around $205,000 and the net present value was $180,000. VOTE Hedberg Keeney McGuire Morton Thompson Aye ☒ ☒ ☒ ☒ ☒ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ Draft 08 08 16 City Council Meeting Minutes 9 Morton: Asked how long was Dominium. Rogness: Replied that housing can go up to 25 years and 18 was done on Dominium. Morton: Stated in scenario B the City is giving them an expanded land value basis with improve- ments and they are getting an additional six years going abatement verses TIF. Rogness: Responded that is correct. Keeney: Requested clarification that scenario B abatement has the $296,000 over then tax simi- lar the next 15 years then after 30 years the City would finally see some income from this. Boyles: Added the County and School District also receive a benefit during this time as well. MOTION BY MCGUIRE, SECOND BY KEENEY TO OPEN THE PUBLIC HEARING AT 10:03 P.M. The motion carried. Lloyd Erbaugh, 17291 Marshfield Lane: Stated he is the chair of the EDAC but these are his own points of view. Commented it is a great pleasure to have Versatile Vehicles come to Prior Lake and they are a family who embraces Prior Lake. Stated the expansion of this business will have a difference in the Deerfield development. Thanked them for expanding their business in Prior Lake. Stephanie Carroll, 2056 165th Street NW: Thanked the council, EDA, and members of the public for supporting their business. Explained in 1986 her family came from Lebanon and started this business from nothing with only 5 employees and 31 vehicles up to 35 employees and over 4,000 vehicles. Noted her brother and her will take on this business and grow it over the next 30 years. Stated they would have liked to do the TIF option but they are on time con- straints. Concluded that she hopes the council sees a potential in their growth. Gaby Accad, Burnsville: Stated he researched properties and this lot has been vacant for 16 years; when he looks at the big picture the lot is only generating $18,000 in property taxes but based on the size of their building it will be over $110,000 in property taxes. Added over the next 15 years on what they will be paying in property taxes is over the abatement amount. Stated they will bring in a bigger building and more jobs with just need a little assistance from the City to get going. Reminded the council to look at the big picture to make the decision. Kurt Briggs, 14914 Lori Road SE: Stated he is excited to have Versatile Vehicles here and scenario A is the way to go. Noted he realizes that Scott County has bigger fish to fry but this is important to Prior Lake and scenario B is a tad excessive. Stated he does not want to see this project come to a stop as it will bring job creation and economic value. Keeney: Asked Carroll to clarify why this cannot happen with the TIF option. Carroll: Stated the location in Savage is sold as long as they are able to get out of the building by December 1, 2016. Added without a location to move in to, the sale of the Savage location will be lost. Keeney: Asked what costs so much. Carroll: Stated it is a 4.5-million-dollar project for them; the lot needs to be paved per the City’s request, they are extending the space, trees, landscaping develops over 1.5 million dollars in improvements. Keeney: Asked if other cities have these requirements or what is the competition here. VOTE Hedberg Keeney McGuire Morton Thompson Aye ☒ ☒ ☒ ☒ ☒ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ Draft 08 08 16 City Council Meeting Minutes 10 Carroll: Responded that the taxes on this property is significantly higher than other properties they were looking at. Suggested moving to this location adds a spark to that area which she be- lieves it is beneficial to the City. Hedberg: Added that without assistance Versatile Vehicles cannot build a bigger building to ex- pand their business. Carroll: Stated that is correct without the assistance for a bigger building they could stay where they are if it will be the same size. McGuire: Commented that Versatile Vehicles has only been great addition to the community and he believes the creation of jobs is very important. Stated his first choice is scenario A but if the County cannot pass the TIF he will support scenario B. Rogness: Stated the motion can be to approve the subsidy agreement and the wording can say preferably scenario A but council agrees to scenario B. Keeney: Commented that he has a hard time supporting the abatement to the value to the city. Confirmed he only supports scenario A because he is concerned with the rush of this project. Added the price is a little high; he agrees the jobs are not high value jobs and he does not like the 15-year term. Hedberg: Explained jobs coming to a community has a positive effect as it may bring in more residents as well. Stated he agrees with McGuire and thinks waiting for another buyer will not benefit the City. Morton: Noted the council just had a discussion about no new debt, no new spending so she struggles with scenario B. Stated she can compromise with scenario A with the thought the County is going to support it. Thompson: Stated for every job that they create the City forgives $20,000 of that loan. Added she wants this business and these people to come to the City but it is so hard, she agrees with Morton and Keeney. Accad: Stated he looks at the lot being empty for 16 years with $18,000 of tax per year and even if they are only in there for four years we are paying over $100,000 of tax per year, is that not already paying back the money the City has assisted us with. Morton: Stated that is a fair point but $125,000 is school, county, and city taxes so the portion of that $100,000 is only about $15,000. Accad: Stated if the rest of that $100,000 is helping the county and school that is a positive thing for the residents. Morton: Stated the City Council is trying to balance the business community with the residential community. Accad: Asked how much goes to the City from the $140,000 platting fee and the $98,000 build- ing fee. Rogness: Responded that everything minus the Met Council SAC portion of the fees which is about $28,000; the revenue the City is getting from fees is part of the project which is a benefit to the City as well. Thompson: Asked if those fees just cover the cost. Rogness: Responded that most of the fees go into various trunk fees. Hedberg: Stated trunk fees are paying for the trunk costs in that development but this is an area that has already been paid for since the lots exist. Keeney: Commented that the trunk fees are calculated into the City’s system but it is not a net benefit. Accad: Concluded that he sees the points and concerns but hopes the City will assist their small business which is one of the biggest buildings in Prior Lake. Thompson: Asked if this has been done before. Hedberg: Responded that the City has not done abatement but they have done business incen- tives. Draft 08 08 16 City Council Meeting Minutes 11 MOTION BY MCGUIRE, SECOND BY HEDBERG TO APPROVE RESOLUTION 16-101 FOR A BUSINESS SUBSIDY, TAX ABATEMENT AND BUSINESS SUBSIDY AGREEMENT FOR VERSATILE VEHICLES WITH SCENARIO A WITH FALL BACK TO SCENARIO B AMENDMENT BY KEENEY, SECOND BY MORTON TO ONLY APPROVE SCENARIO A The motion carried. The motion carried. Carroll: Asked if the County does not agree where does that leave them. Schwarzhoff: Stated if scenario A does not go through this can be brought back. MOTION BY MCGUIRE, SECOND BY MORTON TO CLOSE THE PUBLIC HEARING AT 10:39 PM OLD BUSINESS No Old Business Scheduled NEW BUSINESS 9A Consider Approval of a Resolution Approving a Preliminary Plat for Olson Addition Planner Matzke presented on this topic dated August 8, 2016 Morton: Asked if the preliminary plat is good for one year and everything meets the lot size and setbacks. Matzke: Responded it is good for one calendar year and the property meets the lot size and setbacks. Thompson: Questioned if there is a variance. Matzke: Replied there is no variance as it is a standard subdivision. Hedberg: Stated he would have preferred two more lots to close off the Highway 13 access but he supports this. MOTION BY KEENEY, SECOND BY THOMPSON TO APPROVE RESOLUTION 16-102 FOR A PRELIMINARY PLAT FOR OLSON ADDITION VOTE Hedberg Keeney McGuire Morton Thompson Aye ☒ ☒ ☒ ☒ ☒ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ VOTE Hedberg Keeney McGuire Morton Thompson Aye ☒ ☒ ☒ ☒ ☒ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ VOTE Hedberg Keeney McGuire Morton Thompson Aye ☒ ☒ ☒ ☒ ☒ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ Draft 08 08 16 City Council Meeting Minutes 12 The motion carried. 9B Consider Approval of an Ordinance Opting-Out of the Requirements of Minnesota Stat- utes, Section 462.3593 Regarding Temporary Family Health Care Dwellings City Attorney Schwarzhoff presented on this topic dated August 8, 2016 MOTION BY THOMPSON, SECOND BY MCGUIRE TO APPROVE ORDINANCE 116-16 OPT- ING-OUT OF THE REQUIREMENTS OF MINNESOTA STATUTES, SECTION 462.3593 RE- GARDING TEMPORARY FAMILY HEALTH CARE DWELLINGS Morton: Stated she wants to make sure there are not negative implications of opting out. Schwarzhoff: Responded that she cannot confirm any long-term affects but the state did put in the opt out option. Boyles: Noted the opt out was built in to the law in order to get this passed. The motion carried. ITEMS REMOVED FROM THE CONSENT AGENDA No Items Removed from Consent Agenda OTHER BUSINESS / COUNCILMEMBER REPORTS Thompson: Reminded people to vote Tuesday, August 9, 2016 for the republican primary. Boyles: Stated City Council candidacy applications open August 2, 2016 and close August 16, 2016 at 5:00 pm. ADJOURNMENT With no further business brought before the Council, a motion was made by McGuire and se- conded by Keeney to adjourn. The motion carried and the meeting adjourned at 10:48 p.m. VOTE Hedberg Keeney McGuire Morton Thompson Aye ☒ ☒ ☒ ☒ ☒ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ The motion carried. ________________________________ Frank Boyles, City Manager VOTE Hedberg Keeney McGuire Morton Thompson Aye ☒ ☒ ☒ ☒ ☒ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐