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1997-05-20 CC Minutes Special Cottages-Vetsch Cabinets . ALBERTVILLE CITY COUNCIL SPECIAL HEETING Har 20, 1997 Albertville City Hall 8:00 PM PRESENT: Mayor Mark 01 sen, Counci Imembers Duane Berning, John Vetsch, Patti Stalberger, and Robert Gundersen, City Attorney Mike Couri, City Administrator Garrison Hale and City Clerk-Treasurer Linda Houghton Mayor Olsen called the special meeting of the Albertville City Council to order. At torney Couri requested the agenda be amended wi th the addi tion of a closed session to discuss the potential Peterson litigation. Berning made a motion to adopt the agenda as amended with a closed session. Stalberger seconded the motion. All voted aye. . Mayor Olsen opened the public hearing to consider the creation of Tax Increment Financing District No. 7 and a Tax Increment Financing Plan for the TIF District, and modification of the Development Program for existing Development District No.1. City Attorney Couri explained the proposed TIF District No.7, a housing district, whose purpose is to facilitate development of a rental housing facility intended primarily for low and moderate income seniors. The district will be certified for twenty five (25) years. Since this is a housing district TIF, there is no LGA/HACA penalty to the City. The TIF Plan covers only the 5.12 acre parcel developed into rental units in the proposed Cottages of Albertville plat. The tax increments generated by this development will reimburse the developer for $390,000 of his land acquisition, site improvements, soil corrections, parking, and utilities costs. The district proposed is establ ished as a pay-as-you-go TIF, i. e. when tax increment revenue is received from the County, the City will pay the developer. City Clerk Houghton reported there had been no written or oral objections received at city offices. Mayor Olsen called for comment from the floor. . Bernard Marx stated he is opposed to the proposed TIF plan and the Statement of Public Purpose detailed on Page 6 of the Development Program. Marx stated that he is currently working on a private senior housing project on the Marx property that will not require a TIF Financing Plan. He also feels his location, which is closer to the churches and the downtown area, has been the . ALBERTVILLE CITY COUNCIL May 20, 1997 Page 2 of 3 preferred location for senior housing. There were no other comments from the audience. Berning made a motion to close the public hearing. Stalberger seconded the motion. All voted aye. Stalberger made a motion to adopt RESOLUTION #1997-32 titled RESOLUTION APPROVING MODIFIED DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 AND A TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO.7. Vetsch seconded the motion. All voted aye. Mayor Olsen opened the public hearing to consider the creation of Tax Increment Financing District No. 8 and a Tax Increment Financing Plan for the TIF District, and modification of the Development Program for existing Development District No.1. City Attorney Couri explained the proposed TIF No. 8 is an economic development district, whose purpose is to facilitate development of a cabinet manufacturing facility. TIF #8 is also . established as a pay-as-you-go TIF. Because it is an economic development district, there is a penalty on the LGA/HACA payments to the City. However, the City may opt to provide 10% of the project costs and avoid the LGA/HACA penalty. The purchase agreement has been written to sell the two acre si te for approximately $1,800. The parcel has an assessed market value of $13,000, according to the Wright County Assessor. The approximate $11,000 di fference coul d be used as the Ci ty' s contribution to the project. City Clerk Houghton reported there had been no written or oral objections received at city offices. Mayor Olsen called for comment from the floor. There was no public comment. Stalberger made a motion Gundersen seconded the motion. to close the All voted aye. public hearing. Councilmember Berning removed himself from the City Council at 9:25 PM because of a potential conflict of interest. . stalberger made a motion to adopt RESOLUTION #1997-33 titled RESOLUTION APPROVING MODIFIED DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO.1 AND A TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO.8. Gundersen seconded the motion. Olsen, Stalberger, Gundersen and Vetsch voted aye. Councilmember Berning returned to the City Council at 9:27 PM. . e . ALBERTVILLE CITY COUNCIL May 20, 1997 Page 3 of 3 Vetsch made a motion to approve a 3.2 Malt Liquor License for the Albertville Jaycees at Albertville City Park on June 13, June 14, and June 15. Stalberger seconded the motion. All voted aye. Vetsch made a motion to approve the request from the Life in Christ Youth Group to hold a car wash at the Park & Ride site on Saturday, June 14. Gundersen seconded the motion. All voted aye. Councilmember Berning explained that he is in favor of amending Ordinance #1995-7 detailing when the Council meets and how the agenda is set. He feels that the Council needs to conduct two regular meetings a month as had been done prior to the ordinance adoption. Berning also believes the agenda must be restructured into departments to create a better flow for the meetings. City Attorney Couri suggested the Council try the proposed format for meetings a month or two before the ordinance is amended. This may eliminate more than one ordinance amendment. Berning made a motion to establish two regular Council meetings in June and to have the agenda reformatted, reviewed and revised by the mayor, acting mayor, administrator and cl erk. Vetsch seconded the motion. All voted aye. Mayor Olsen recessed the public meeting to convene a closed session to discuss pending litigation over the Shirely Peterson property. The meeting was adjourned at 10:30 PM. Mark Olsen, Mayor Linda Houghton, Clerk