1996-03-26 CC Minutes
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ALBER!VILLE eIn COURCIL
SPECIAL ~~ IRa
March 26, 1996
Albertville city Hall
6:45 PM
PRESERT: Mayor Michael Potter, Councilmembers John Vetsch,
Duane Berning, Curt Muyres and Sharon Anderson (6: 57 PM), City
At torney Mike Couri, City Administrator Garrison Hal e and Ci ty
Clerk-Treasurer Linda Houghton
Mayor Potter called the special meeting of the Albertville
City Council to order.
Mayor Potter amended the agenda by adding Item 2B - Consider
Resolution '1996-27. The amended agenda was approved by consensus
of the Council.
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Lonnie Kornovich explained that he was requesting Council
support for the establishment of a Housing District TIF for the
townhouse project he is proposing on the lot adjoining the 75-unit
apartment building in order to qualify for Minnesota Housing Tax
Credits. The application for the tax credits must be submitted by
March 29, 1996 and the Council's support, or letter of intent to
support, a TIF district will give him additional points on the
application.
Kornovich estimated that total tax dollars to the City on the
compl eted townhouse project would be in the low to mid $40,000
range. Kornovich is asking for a rebate of approximately $14,500
of those taxes annually.
City Attorney Couri advised the Council that a qualified
housing district TIF wi 11 not penal i ze the Ci ty on its Local
Government Aid as long as it meets the IRS codes. The TIF district
wi 11 extend for 20-25 years. Couri explained that the Counci 1
could decrease the time limits if it chooses. To eliminate the
danger of having the City committed to a rebate even if tax
payments were not made, the TIF could be set up as a pay-as-you-go,
similar to the Fraser Steel TIF, in which the City reimburses
Fraser Steel only after it has received the tax payment from the
County.
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Counci Imember Berning expressed concerns that the school
district would lose tax dollars if the TIF district is set up. He
also stated he feels this request should have been brought to the
AEDA first. Counci Imember Vetsch further added he feels the County
and school district would increase their tax capacity rates to make
up for the tax dollars lost in the TIF. Vetsch also believes the
City has adequate rental property.
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AALBERTVILLE CITY COUNCIL
SPECIAL MEETING
March 26, 1996
Page 2 of 2
Muyres made a motion to reject participation in creating a
Housing District TIF at this time. Vetsch seconded the motion.
All voted aye.
The Council discussed the appointment of Roxanne Packa to the
Albertville/Otsego Consolidation Commission. Due to recent actions
on annexation petitions of Frankfort Township, the Council
questioned whether Packa could be objective on the Consolidation
Committee.
Muyres made a motion to recommend that the Municipal Board
consider removal of Roxanne Pack a as chair of the consolidation
committee meetings between Albertville and Otsego due to a
potential conflict of interest. Anderson seconded the motion. All
voted aye.
The Council discussed the appointment of one Councilmember and
Attorney Peter Schmitz to a committee to meet with other
communities regarding annexation issues. Mayor Potter recommended
Counci Imember Berning represent the ci ty in the meeting. The
Council agreed and appointed Councilmember Muyres as an alternate
member.
Discussion continued among the Council regarding what results
could be expected from such a meeting. Councilmember Muyres is
pessimistic about the results and is not sure there is much use to
meeting. Councilmember Berning is concerned about the legal fees
for such meetings that may not be productive. The Council
concurred to set a meeting with elected officials only with no
attorney involvement.
Muyres made a motion to appointment Berning, with himself as
an alternate, to participate in all annexation related proceedings.
Vetsch seconded the motion. All voted aye.
Berning made a motion to adopt RESOLUTION '1996-27 titled A
RESOLUYION MAKIKG THE APPOINTMENT OF SPECIAL LEGAL COUKSEL FOR ALL
AMNEXAYION AND RELAYED PROCEEDINGS FOR THE CITY OF ALBERTVILLE.
Muyres seconded the motion. All voted aye.
Anderson made a
seconded the motion.
motion to adjourn at 7: 40 PM.
All voted aye. ~~
{~~l Potter. Mayor
t-:71"Ld0,
Linda Houghton,
Berning