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HomeMy WebLinkAbout2007-04-12 - Council Minutes CITY OF CORCORAN CITY COUNCIL MEETING April 12, 2007 CALL TO ORDER AND ROLL CALL Call to Order The Corcoran City Council met on April 12, 2007, at city hall in Corcoran, Minnesota. Present were Mayor Guenthner, Councilor Grabowski, Councilor Jacobs, Councilor Hudok, and Councilor Thomas. Also present were , City Roll Call Engineer Vander Top, Planner Lindahl, Interim Attorney Langel, Interim Planner Gartner (7:10 p.m.) and Administrator Vergin. City Assessors Ann Risch and Rolf Erickson and County Assessor Bill Effertz were present for the Local Board of Review. Mayor Guenthner called the meeting to order at 7:00 p.m. followed by the Pledge of Allegiance. Agenda Approval AGENDA APPROVAL MOTION by Grabowski, seconded by Thomas, to approve the agenda with modifications. Items 4.a. became 4.b; 4.b became 4.a.; item 9 was placed in front of item 7, along with item 15.b, and Dirt Bike Email was added as item 15.c. Voting Aye: Guenthner, Grabowski, Jacobs, Hudok, and Thomas. (Motion carried 5:0) Open Forum & Announcements: OPEN FORUM & ANNOUNCEMENTS Introduction of New Police Chief Gormley introduced two new police officers, Jesse Olson and Duane Officers Hochstetler, who where then sworn in by Mayor Guenthner. Both officers started employment with the City on April 1, 2007. Officer Josh Guck was recognized by both Chief Gormley and MADD District MADD – Outstanding Advocate Angela Haseman, for having received the Outstanding Service Award Service Award to Officer from Mothers Against Drunk Drivers, for his outstanding service in the Hunter enforcement of DWIs. Chad Robran, representing the Corcoran JC’s addressed the council on Corcoran Corcoran Country Daze th Country Daze. This is the 4 year for the event. Mr. Robran informed the council that they would like to have some financial support from the City. They are seeking $1,000 for fireworks and $1,500 for police protection. The Council stated that they would address this request at their May 10 council meeting. Public Works facility Rick Ravnholdt, Chair to the Long Term Public Works Facility Task Force Task Force Presentation presented the Council with the Committees report. They identified equipment storage needs, present and future; service bay needs, present and future; identified staffing needs and forecasted growth; impacts that municipal sewer and water may have on staff, equipment and facilities; and potential locations sites for a new facility. Mr. Ravnholdt summarized that the Task Force recommended that the city property south of the current city hall building should be the location for a new facility; that the current public works facility should be razed and replaced with an appropriately sized pole building for storage and office area; and that the current site on Cain Road should be utilized as a satellite facility. The Council requested that this matter be placed on a future agenda for discussion by the Council, and directed Mr. Ravnholdt to coordinate an open house of the existing facility with Administrator Vergin. LOCAL BOARD OF REVIEW Local Board of Review Mayor Guenthner called the Local Board of Review to order. Informed those present for the Board of Review that they would be taken in the order that they had signed in, and if anyone had not yet signed in to do so. It was explained that the Council would hear the grievances, would then direct the Assessors to meet with Page -1- CITY OF CORCORAN CITY COUNCIL MEETING April 12, 2007 the property owners. The Board of Review would be continued on April 26, as which time the Council would review the recommendations from the Assessors. Assessor Risch provided an overview of what took place over the last year with regards to property valuations in the City of Corcoran. She indicated that she has heard concerns regarding values being flat and depressed housing market. Based on sales from October 2005 to October 2006 residential properties saw an average increase of 6.3%, while commercial properties increased by approximately 8%. Land values saw between 15 – 20% increases. The City of Corcoran looses approximately 4% in valuation due to the limited market value restriction. Alan Haggerty, 6200 Butterworth – was not present but has scheduled an appointment with Assessor to review property. Greg Rice, 6701 Rolling Hills Road – would like to see his property reviewed by the Assessor. Roy Poplar, representing the Corcoran Lions, 7205 County Road 101 – the Lions contribute to the community and would like to see some reprieve on their valuation. They have two lots which saw 11% and 13% increases. Mr. Poplar was asked to bring back the valuation data for review on April 26. Dwight Benson, 20205 Larkin Road – expressed concern over the 14% increase in one year, why can’t the increases be more gradual. Has done improvements to the basement and have added a pole barn, but does not feel they increased his valuation by that much. Would like to meet with the Assessor. Charles Perisian, 8001 County Road 116 – was not present. Cecelia & Dennis Kavanagh, 23850 County Road 50 – They have 80 acres of land and feels that increases in land value are only relevant when you are going to sell, can’t compare to property sold for development. Concerned that about ½ of the property is wetland. It was noted that physical aspects of property could be taken into consideration. Will meet with Assessor. Daniel Lange, 9515 County Road 19 – Have done improvements to property, but his limited value increased by $90,000, causing his taxes to increase by 100%. Feels that there is a mistake in his valuation. Mr. Lange was instructed to meet with the Assessor. Mayor Guenthner noted to the public that the Assessor’s role is totally separate from the city’s budgeting process. If property owners are not satisfied with the Assessor’s recommendations then come back to the Council on April 26. Savino Ranallo, 23730 Highway 55 – concerned with increase to valuation, will meet with the Assessor. Gregory Coil, 22632 County Road 10 – saw a 20% increase to his limited market value. Will meet with the Assessor. Tom Cossette, 9200 Shannon Lane – would like to meet with the Assessor. Roberta Brachmann, 20351 Larkin Road – purchased property in 2005 and has not made any improvements, yet valuation has increased by 15%. Will meet with the Assessor. Mayor Guenthner informed the public that the Board does have the authority to make decisions on valuations, but only after receiving information that shows that adjustments should be made. Property owners need to be able to provide factual Page -2- CITY OF CORCORAN CITY COUNCIL MEETING April 12, 2007 information. Steve Lucas, 9215 Shannon Lane – will meet with the Assessor. Bill Worth, County Road 50 – owns property on County Road 50 which increased in valuation from 1.3 to 2 million, with market the way it is now it is farm land, Board of Review won’t be of any value until sewer and water are available. Recessed to 4/26/07 MOTION by Thomas, seconded by Grabowski, to recess the Local Board of Review Hearing to the April 26, 2007 council meeting. Voting Aye: Grabowski, Planning Commission Guenthner, Hudok, Jacobs, and Thomas. Schendel Farms Concept PLANNING COMMISSION BUSINESS: Plan Schendel Farms Concept Plan – Interim Planner Gartner stated that the Council should consider whether or not to proceed with an AUAR for the Schendel Farms development, but first consider whether or not the development is premature based on Section 925 of the City Code. The Planning Commission determined that the Schendel project is not premature and requested that an AUAR be prepared. Gartner identified the following issues based on Section 925. Inconsistent with the Comprehensive Plan, probably does not meet the City’s staging plan as the project is leapfrogging to the center of Corcoran’s downtown area. It may be feasible from an engineering standpoint to provide infrastructure, but it may not be fiscally feasible. It maybe inconsistent with the City’s Capital Improvement Program. There is the lack of water and sanitary sewer, therefore could be deemed premature. Transportation is another issue; the additional development will increase congestion at the intersection of County Road 10 and County Road 116. The burden is on the developer to show that the development is not premature. If the Council finds that it is not premature then an AUAR should be authorized. Policy decisions should address whether the City will allow leapfrog development, or develop from the borders; is the City willing to fund short term with anticipation of being reimbursed over the long term. The City can also look at restricting growth by limiting the number of building permits issued in a year within the MUSA area. If the Council is not willing to address the policy issues, then a moratorium should be put in place and the City should start their comp plan review process. Chuck Alcon and Bill Coffman of Corcoran Land Development LLC were present to review the concept plan. First Phil Schendel provided history of his family’s farm and their involvement with the City. His mother was a lifetime resident and active in the community; they owned the Schendel General Store that still stands on County Road 10; his father was very active in the fire department, was the justice of the peace and the first police chief in Corcoran. Their family met with many developers before making a decision to work with this developer. They like the aspect of senior housing and other amenities it will provide. Chuck Alcon addressed the council. It is a 103-acre site, minus wetlands it is 91.7 acres. Six units per acre were hard to achieve, ordinance calls for 6 to 20 units per acre in this zone. They did this by providing for 166 single-family units, 104 row homes, 180 apartment/condo units, and 150 elderly units for a total of 600 units. This plan is consistent with the land use, zoning, and density requirements. This density allows the balance of the City to develop less dense. The PUD plan meets the sewer-staging plan that identifies development in the center of the downtown area; it is not leapfrogging. The PUD will support the water supply plan for future well and tower in the downtown area. Can support the Parks and Trails Plan, and also can support the Transportation Plan with some adjustments’ to the PUD. This Page -3- CITY OF CORCORAN CITY COUNCIL MEETING April 12, 2007 development is a catalyst that will start development in the downtown area. The development will take 7 to 10 years to fully develop. A package sewer facility would not be adequate for this project. The Comp Plan identifies a force main to service this area. An AUAR would provide information to address infrastructure and transportation issues, as well as address drainage issues. If the City feels that this is premature now, when would it not be premature? The projected timeline would be for the AUAR, preliminary and final plat processes to be completed during 2007- 2008, with site prep and construction of infrastructure in 2008-2009. Build out of the housing units would be from 2009 – 2015. This would allow time for the city to budget for population increases. Request that the City direct staff to define the area for the AUAR and prepare an RFP. Corcoran Land Development LLC will fund the AUAR, with a reimbursement agreement to recover a portion of the costs as other development occurs in the AUAR area. Mayor Guenthner commented that the timing of the proposal based on the Comp Plan is not premature. The phasing identified in the Comp Plan is a product of hours of debate and is there for a purpose. It was the ultimate decision to focus on the downtown area and then build out from there. That was the product of the public process with the Comp Plan. It was the understanding that the pipe would span undeveloped territory to get to developed areas, and that the developer pays. Higher density in that location is identified in the Comp Plan. This is the same as the business park, private development creates infrastructure. This is the byproduct of the decisions made through the public process involving many hours. Does not view this as premature. Is the city and city council willing to take the steps necessary to move this forward? Councilor Thomas stated he does not view this as premature, as he was involved with the Comp Plan process. The Comp Plan says there is a force main to the center of downtown; this is not leapfrogging. This will promote the downtown area. If we say it’s not consistent then through out the Comp Plan. Mayor Guenthner pointed out that there are only two areas in the City that are guided for this type of high-density housing, which provides life cycle housing. It compresses that development into a compact area, so it’s not spread over larger areas of the City. In order to support commercial development downtown with infrastructure services, we need to commit to a certain population. In 1996 the Met Council identified all 36 square miles of Corcoran as Urban Reserve, so by 2030 Corcoran would develop like Maple Grove. The City worked with the Met Council on the current Comp Plan which provides permanent open space, by still taking some population growth, we want to be able to provide housing for the retired and the young families. We are getting the pipe, but with a limited population growth. Prefer to see the PUD to straight zoning. Take incremental steps to work with the developer. Advocate that they move forward with an AUAR. Councilor Grabowski stated that he goes back and forth. This is such a large project, proposing 600 units. Sees difficulties and problems with this project. Can be deemed premature due to the lack of water, sewer, and streets. This is a tremendously large project for the City. What kind of financial risk will the City take? Mayor Guenthner responded that there would not be a financial risk at this time; the risk would be addressed during the process, which is managed by the City. Councilor Thomas reiterated that the risk is to the developer. If we say it is premature then we, the City, will need to provide sewer, water, and streets, which Page -4- CITY OF CORCORAN CITY COUNCIL MEETING April 12, 2007 will be a risk to the City. Mayor Guenthner noted that Section 925 (Premature Development) is confusing and seems to contradict the Comp Plan. The Comp Plan requires that the developers take the risk to get services to the downtown area. Chuck Alcon informed the Council that Livable Communities, a program through the Met Council, provides grants for redevelopment. Their project will bring in rooftops that will help the City leverage these grants. Councilor Jacobs stated that the City has seen limited growth in the past 7 years when this plan has been in place. Perhaps this is a catch 22, density upsets equal rights. Corcoran has a series of equal road issues. Six hundred new units is a large percentage in one spot and triggers concerns as identified in Section 925. The Met Council will bring the pipe to Corcoran, but we are not under an obligation to extend that pipe into the community, it is a volunteer system. There have been changes at the Met Council, reluctant to take information received 5 – 7 years ago from the Met Council to make decisions today. The Met Council population has not increased to what their forecasts were. Should follow Planner’s direction to review Comp Plan. Councilor Hudok stated that he has concerns with water and sewer but understand that they can be overcome. Streets need realignment but how quick will the County be able to keep up with the traffic that will be generated. How do we know we can keep up with the demand that this type of development will put out there. Alcon sated that the AUAR can frame these issues for the area, and perhaps solve Declined AUAR – some of these issues. The AUAR should include the entire downtown area. Development Deemed Premature MOTION by Thomas, seconded by Guenthner to direct staff to define the AUAR area, prepare an RFP, and a cost sharing agreement, with the Developer up fronting the costs of the AUAR. Discussion on Motion Councilor Hudok stated that the City needs to plan to prepare and be ready for this development, we don’t have that yet, not ready to decide. Mayor Guenthner responded that the CIP plan could happen parallel with this. Could do a CIP based on speculation, or do it parallel. Councilor Jacobs stated that the public be aware that we have been addressing these for the past three months. Also have created a pavement management committee. Reality is that we have a small staff and council that can’t handle this. The primary should be to take are of the residents that are here. Feels this is premature. VOTE ON MOTION: Voting Aye: Guenthner and Thomas. Voting Nay: Grabowski, Hudok, and Jacobs. (Motion Failed 2:3) Alcon questioned what they would be allowed to do with the property, as the owner does have development rights. Councilor Jacobs responded that based on what he has seen should show how the finished products would look. Councilor Grabowski stated he would like to see ideas on what would be done to the roads, a much clearer defined design on how to deal with the traffic. Perhaps seek the County’s input. Page -5- CITY OF CORCORAN CITY COUNCIL MEETING April 12, 2007 Councilor Hudok stated that he would like to see what the plans are for sewer and water, see what the County’s vision is for the roads. The City should start preparing for infrastructure through a CIP. Corcoran Business Park CORCORAN BUSINESS PARK Medina / Corcoran Medina / Corcoran Utility Agreement Subcommittee Report Utility Committee Report Councilor Grabowski reported on the utility subcommittee meeting with the City of Medina. Medina Councilmember Dan Johnson has provided very positive feedback to Corcoran. Medina will be receiving a report from Ehlers and Associates on April 17 with regards do the rate analysis. We have been able to address their concerns and overall very positive. Engineer Vander Top concurred that the overtones are very positive. That need to identify what the expectations are with regards to the over sizing credit. Administrator Vergin informed the Council that they would receive the report from Ehlers and Associates on April 26. Final PUD Plan Resolution No. 2007-17 Final PUD Plan MOTION by Grabowski, seconded by Thomas to approve resolution 2007-17 approving the final Planned Unit Development Plan for the Corcoran Business Park. Discussion on Motion: Councilors Jacobs and Hudok expressed concerns regarding the backage road and the extension of sewer and water. If the road does not go through why not show a cul-de-sac on the plan, and if sewer and water infrastructure is not available should have a back up plan to provide on site services. Mayor Guenthner noted that there are contingencies in the approving resolution to address those items. Councilor Grabowski stated that the City and the Developer are willing to work through these if there are any problems. VOTE ON MOTION: Voting Aye: Grabowski, Guenthner and Thomas. Voting Nay: Hudok and Jacobs. (Motion Carried 3:2) Final Plat and Final Plat and Development Contract Development Contract Resolution No. 2007-18 MOTION by Thomas, seconded by Grabowski to approve Resolution No. 2007-18 approving the Final Plat and Development Contract for the Corcoran Business Park. Discussion on Motion: Concern was raised regarding the revised cash flow, which indicated a negative balance of $150,000 based on the revision to the development contract to reduce the interest rate from 2 to 1 percent over the City’s borrowing rate. AMENDMENT TO MAIN MOTION by Thomas, seconded by Grabowski to Amendment to amend the Development Contract to read 2 % interest rate over the City’s Development Contract borrowing rate. Voting Aye: Grabowski, Guenthner, and Thomas. Voting Nay: Hudok and Jacobs. (Motion Carried 3:2) VOTE ON MOTION AS AMENDED: Voting aye: Grabowski, Guenthner and Thomas. Voting Nay: Hudok and Jacobs. (Motion Carried 3:2) Page -6- CITY OF CORCORAN CITY COUNCIL MEETING April 12, 2007 Continue Meeting Past 10:00 PM MOTION by Thomas, seconded by Grabowski to continue the meeting for an additional 15 minutes. Voting Aye: Grabowski, Guenthner, Hudok, Jacobs, and Thomas. (Motion Carried 5:0) Public Hearing PUBLIC HEARING – BUSINESS SUBSIDY FOR CORCORAN BUSINESS Reconvened – Business PARK Subsidy Mayor Guenthner reconvened the public hearing from the March 22, 2007 council meeting. Public Comments Public Comments None. Hearing Closed MOTION by Thomas, seconded by Grabowski, to close the public hearing. Voting Aye: Grabowski, Guenthner, Hudok, Jacobs, and Thomas. (Motion Carried 5:0) Council Discussion Council Discussion / Decision Steve Bubul of Kennedy and Graven summarized the subsidy agreement. It is to provide tax increment funds for a portion of the interchange/signal work at Highway 55 and Pioneer Trail. The agreement indicates that the Corcoran Business Park must create a specified number of jobs within a specified period of time. If those goals are not met, then there is a prorated payback to the City. Councilor Jacobs questioned why the dollar figures were not included in the subsidy agreement. Bubul responded that the information is included in the development contract, and therefore is not required to be in the subsidy agreement. Councilor Hudok stated that at the workshop United Properties indicated that they are backed by a wealthy family, therefore why is the subsidy necessary. Bill Katter of United Properties responded that the total cost for the traffic signal is approximately $1.5 million, and that UP will still be contributing $500,000 to this which will benefit others, not just their development. Approval of CBP MOTION by Thomas, seconded by Grabowski to approve Resolution 2007-22, Business Subsidy approving the Subsidy Agreement for the Corcoran Business Park. Voting Aye: Agreement Resolution Grabowski, Guenthner, and Thomas. Voting Nay: Hudok and Jacobs (Motion No. 2007-22 Carried 3:2) Continue Meeting MOTION by Grabowski, seconded by Thomas to continue the meeting until 10:30 p.m. Voting Aye: Grabowski, Guenthner, Hudok, Jacobs, and Thomas. (Motion Carried 5:0) PUBLIC HEARING – MUNICIPAL DEVELOPMENT & TAX Public Hearing – TIF INCREMENT FINANCING PLAN – TIF DISTRICT #1 Amendment Mayor Guenthner reconvened the public hearing from the March 22, 2007 Council meeting. Public Comments Public Comments None. Hearing Closed MOTION by Thomas, seconded by Grabowski to close the TIF public hearing. Voting Aye: Grabowski, Guenthner, Hudok, Jacobs, and Thomas. (Motion Carried Page -7- CITY OF CORCORAN CITY COUNCIL MEETING April 12, 2007 5:0) Council Discussion / Decision Approval of TIF Modification Resolution MOTION by Grabowski, seconded by Thomas to approve Resolution No. 2007-23 No. 2007-23 approving the modification to the Municipal Development and Tax Increment Financing Plan for TIF District #1. Voting Aye: Grabowski, Guenthner, Hudok, Jacobs, and Thomas. (Motion Carried 5:0) Condemnation Process – Condemnation Process – Backage Road Easements Backage Road Attorney Langel and Engineer Vander Top provided an update to the Council on the status of the easements required for the extension of the backage road from the Corcoran Business Park plat to Rolling Hills Road. Notice of quick take has been given, the appraisals have been completed, the broader issue now in front of the council is if they wish to pursue the easements or cul-de-sac the road and when other development occurs then extend the road. Vander Top reminded the Council that the MnDot funding would go away if the street were not extended. When the City seeks the installation of the traffic signal during Phase II, MnDot may require the extension of the backage road at that time, with potential of no funding. Phase III of the development will most likely force the extension. The risk to the City at this time is that Medina Electric may attempt to increase the offer over the appraiser’s recommendation. Currently the appraisals are very close to what was identified in the feasibility study. Vander Top explained that the placement of the water utility would need to be shifted to the Highway 55 utility easement if the backage road is not extended. Mayor Guenthner and Councilor Thomas indicated that they would like to move forward with seeking the easements, always have the cul-de-sac option. Jacobs stated that the road design could change, and then the right of way would be adjusted, why take the risk. Engineer Vander Top stated that a neighborhood meeting could be held and could adjust the road alignment but it will only drive up the costs, and Medina Electric’s right of way would remain the same. Direct Staff to Make MOTION by Grabowski, seconded by Thomas to direct staff to present the current Offer appraisal offer with the understanding that it is a take it or leave it offer, council may take action of April 26 for final commencement for condemnation. Voting Aye: Grabowski, Guenthner, and Thomas. Voting Nay: Hudok and Jacobs. (Motion Carried 3:2) Due to the lateness of the meeting the following items were taken care of and all other items were laid over to the April 26, 2007 meeting Commission Appointment Laid Over to 4/26/07 UNFINISHED BUSINESS 2006 Audit Correspond. 10.a. Appointments to Commission – laid over to 4/26/07 Laid Over to 4/26/07 10.b. 2006 Audit Correspondence – laid over to 4/26/07 Woodland Ordinance 10.c. Schedule Woodland Ordinance Information Meeting – laid over to Meeting – Laid Over to 4/26/07 4/26-07 NEW BUSINESS: Planning Commission- Laid Over 4/26/07 12.a. Planning Commission Reimbursement – laid over to 4/26/07. CIP Education Course- 12.b. City Council – CIP Education Course – laid over to 4/26/07. Page -8- CITY OF CORCORAN CITY COUNCIL MEETING April 12, 2007 12.c. Administrator Vergin announced that there would be a meeting with the Laid Over 4/26/07 Council and Parks & Trails Commission on April 17 at 7:00 p.m. to hear a Parks & Trails / Council presentation on the Elk Creek park Regional Trail. Meeting 4/17/07 CONSENT AGENDA Consent Agenda – Laid All items laid over to 4/26/2007. Over 4/26/07 CLAIMS Escrow Claims (Fund #500) $51,597.45 Approval of Claims MOTION by Thomas, seconded by Grabowski, to approve the Escrow Fund claims as presented, totaling $5,597.45. Voting Aye: Guenthner, Grabowski, Hudok, Jacobs, and Thomas. (Motion carried 5:0) All Other Claims $18,703.96 MOTION by Hudok, seconded by Grabowski, to approve all other claims as presented, totaling $18,703.96. Voting Aye: Guenthner, Grabowski, Jacobs, Hudok, and Thomas. (Motion carried 5:0) Council & Staff Reports COUNCIL AND STAFF REPORTS: Laid Over to 4/26/07 15.a. Planning Commission – laid over to 4/26/07 15.c. Dirt Bike – Laid over to 4/26/07 CLOSED SESSION – NOTICE OF CLAIM AND DEMAND Closed Session Attorney Langel stated that the City Council would go into closed session to discuss pending litigation. Recess Regular Meeting Mayor Guenthner recessed the regular council meeting to go into closed session, 10:45 p.m. Reconvene Regular Mayor Guenthner reconvened the regular council meeting at 11:32 p.m. Meeting Attorney Langel provided a summary of the closed session noting that Councilor Summary from Attorney Jacobs excused himself from the closed session, as it may appear to be a conflict of Langel on Closed Session interest. This should not be construed with any improprieties. Adjournment ADJOURNMENT MOTION by Thomas, seconded by Hudok to adjourn, 11:35 p.m. Voting Aye: Guenthner, Grabowski, Jacobs, Hudok, and Thomas. (Motion carried 5:0) ______________________________ Sue Vergin, Acting City Clerk Page -9-