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HomeMy WebLinkAboutItem 06.bCITY OF LAKEVILLE CITY COUNCIL MEETING MINUTES September 21, 2015 Mayor Little called the meeting to order at 7:00 p.m. in the Council Chambers at City Hall. The Pledge of Allegiance to the flag was given. Members Present: Mayor Little, Council Members Davis, Swecker, Anderson and LaBeau Staff Present: Justin Miller, City Administrator; Roger Knutson, City Attorney; Jeff Long, Police Chief, Chris Petree, Public Works Director; David Olson, Community & Economic Development Director; Jerilyn Erickson, Finance Director; Daryl Morey, Planning Director; Charlene Friedges, City Clerk 3. Citizen Comments None 4. Additional agenda information None 5. Presentations/Introductions Mr. Olson presented a proclamation declaring October 1-10 Manufacturers Week in Lakeville. Council Member Davis read the proclamation. Chief Long presented the August Police Department monthly report. Consent Agenda Motion was made by Davis, seconded by Swecker, to approve the following consent agenda items "00& a. Claims for payment b Minutes of the September 8, 2015 City Council meeting c. Minutes of the September 14, 2015 City Council work session d. Joint Powers Agreement with Dakota County for the Eagleview Drive pedestrian tunnel; and Amendment to Spirit of Brandtjen Farm Commercial 2nd Addition Development Contract and Planned Unit Development Agreement e. Acceptance of public streets in Bellante Second Addition f. Acceptance of public streets and utilities in Stone Ridge First Addition City Council Meeting Minutes, September 21, 2015 Page 2 g. Acceptance of public streets in Thomas Meadows, and Hold Harmless and Indemnity Agreement with New Market Bank Voice vote was taken on the motion. Ayes - unanimous 7. Airlake Redevelopment Project Area No. 1 and Tax Increment Financing District No. 21 8. Business Subsidy - Scannell Properties and SSB Manufacturing Corp. Mayor Little opened the public hearing on the modification of the Redevelopment Plan for Airlake Redevelopment Project Area No. 1 and establishment of Tax Increment Financing District No. 21. He also opened the public hearing on the approval of a Contract for Private Development with SSB Manufacturing Company and Scannell Properties #247 LLC. Ron Richmond of SSB Manufacturing Company requested Council approval of tax increment financing assistance to facilitate the development of their new manufacturing and warehouse facility on a 23 acre site in the new Interstate South Logistics Park. Dave Olson provided a brief overview of the proposed tax increment financing for SSB Manufacturing Company. He explained that the estimated development cost of the project is $15.7 million, plus $10 million for machinery and equipment. It is a build -to -suit -to -lease project with Scannell Properties constructing the building and leasing it back to SSB Manufacturing. The Contract for Private Development provides for pay-as-you-go reimbursements by the City, consisting of 95% of the captured tax increments for a period of nine years beginning with taxes payable in 2017, with a not -to -exceed amount of $1,607,350. This assistance is contingent upon Scannell Properties constructing a 240,000 square foot manufacturing and warehouse facility. SSB Manufacturing is required to create at least 200 jobs over the next two years and must maintain their operation in Lakeville for at least five years. Mr. Olson stated the proposed TIF plan was presented to Dakota County and ISD 194 for review and comment. Dakota County has indicated that this economic development TIF district is not consistent with the County's TIF policy. He further stated the City and County will continue discussions related to the future expansion of County Road 70 as this industrial area continues to expand and develop. There were no public comments. Motion was made by Anderson, seconded by Davis, to close the public hearings. Voice vote was taken on the motion. Ayes - unanimous City Council Meeting Minutes, September 21, 2015 Page 3 Motion was made by Swecker, seconded by Anderson, to approve the following: • Resolution No. 15-105 approving the modification of the Redevelopment Plan for Airlake Redevelopment Project No. 1 and establishing a Tax Increment Financing District and approving a Tax Increment Financing Plan therefor; and • Resolution No. 15-106 approving the Contract for Private Development by and between the City of Lakeville, SSB Manufacturing Company and Scannell Properties #247 LLC. Roll call was taken on the motion. Ayes - Davis, Little, Swecker, Anderson, LaBeau 9. Interstate South Logistics Park Dan Salzer of Scannell Properties requested Council approval of the Interstate South Logistics Park preliminary plat located south of 215' Street and west of Dodd Boulevard. Mr. Morey presented the preliminary plat, which consists of one lot and one outlot on 176 acres. Access to the property will be from 2171 Street at Dodd Boulevard. Future phases will be accessed from 217th Street and a future extension of Jacquard Avenue. Administrative approval of a parking deferment agreement is required prior to occupancy of the building. Mr. Morey explained that the zoning ordinance allows the deferment of up to 50% of the required number of parking spaces. The parking deferment is a contract between the City and property owner and is recorded against the property. If the City determines that the parking deferment is no longer viable due to an inadequate number of designated parking spaces, the City can require construction of the additional spaces. In this case, much of the deferred parking area has been identified on the site plan as trailer parking. There is also deferred parking on what is currently identified as green space. Motion was made by Anderson, seconded by Davis, to approve Resolution No. 15-107 approving the preliminary plat of Interstate South Logistics Park. Roll call was taken on the motion. Ayes - Little, Swecker, Anderson, LaBeau, Davis 10. Spirit of Brandtjen Farm 151 Addition Jacob Fick of Tradition Development requested Council approval of the Spirit of Brandtjen Farm (SBF) 15" Addition. Mr. Morey presented the proposed preliminary and final plat, which includes the vacation of public drainage and utility easements. This preliminary and final plat consists of 62 single family lots located east of Eagleview Drive and north of 167th Street on the east end of the SBF Planned Unit Development. Access to the site will be from an extension of Draft Horse Boulevard; 165' Street will provide the east -west connection to Eagleview Drive. Continued discussions with Dakota County regarding the design and construction of Diamond Path City Council Meeting Minutes, September 21, 2015 Page 4 (CSAH 33) will occur when Outlot G of the SBF 15th Addition preliminary plat is proposed for development. In conjunction with the final plat and consistent with the narrower street design, the Council is being asked to approve a resolution establishing "no parking" areas on 1651 Street, Draft Horse Boulevard and Duluth Trail. Motion was made by LaBeau, seconded by Swecker, to approve Resolution No. 15-108 approving the Spirit of Brandtjen Farm 15`h Addition preliminary and final plat; Resolution No. 15-109 vacating public drainage and utility easements; and Resolution No. 15-110 designating "no parking" areas on 165' Street, Draft Horse Boulevard and Duluth Trail. Roll call was taken on the motion. Ayes - Swecker, Anderson, LaBeau, Davis, Little 11. Preliminary 2016 Property Tax Levy Finance Director Jerilyn Erickson provided a brief overview of the 2016 budget process. The proposed 2016 preliminary tax levy ($26,088,619) represents a 5.5% increase over the 2015 tax levy. Primary increases were in the General Fund, Building Fund, Park Improvement Fund and the Debt Service Fund for debt issued in prior years as well as in 2015. The proposed levy will result in an estimated $35 increase on the average value home. The City Council will be asked to adopt a final tax levy in December, which may be equal to or less than the preliminary tax levy. Staff will continue to work on revenue and expenditure assumptions for the budget, consider the risks and opportunities associated with those assumptions, update the 2015 fund balance reserves, and finalize the capital improvement program. Council Member Anderson stated he could not support a 5.5% levy increase. Based on certain assumptions, i.e. fuel costs and timing of the hiring of a new position, he feels the budget can be reduced and he would support a 4.9% preliminary levy increase for 2016. He expressed confidence that City staff will continue to find ways to reduce the levy prior to final adoption in December. Council Member Davis concurred with Council Member Anderson. He pointed out that there was a substantial budget overage from 2014 to 2015, and he expects that will be the case again this year. Mayor Little stated he could not support a reduced budget and tax levy without knowing exactly where the reductions are being made. He felt confident that reductions would be made prior to adoption of the final budget in December, but he felt that 4.9% is an arbitrary number that cannot be supported at this time. He further stated he feels the Council should not continue to rely on budget overages without the assurance of long term revenue streams. City Council Meeting Minutes, September 21, 2015 Page 5 Council Member LaBeau stated she feels confident that 4.9% is achievable based on information provided at the last budget work session. She indicated that if services need to be cut in order to reduce the budget, she would support making those cuts. Council Member Swecker stated she feels there is a limit to the percentage of the value for services that the community is willing to absorb. She also felt that 4.9% is achievable due to certain budget assumptions and the ability for growth and continued opportunities to add to the City's tax base. Motion was made by LaBeau, seconded by Anderson, to approve Resolution No. 15-111 adopting the preliminary 2016 property tax levy in the amount of $25,940,248 and the preliminary 2016 General Fund Budget in the amount of $25,270,084. Roll call was taken on the motion. Ayes - Anderson, LaBeau, Davis, Swecker Little voted nay 12. Set Budget Public Hearing Motion was made by Swecker, seconded by Anderson, to set the budget public hearing to be held on Monday, December 7, 2015, at 7:00 p.m. Voice vote was taken on the motion. Ayes - unanimous 13. Unfinished business: None 14. New business: None 15. Announcements: Next regular Council meeting, October 5, 2015 Mayor Little adjourned the meeting at 8:33 p.m. Respectfully submitted, Charlene Friedges, City Clerk Matt Little, Mayor