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Home My WebLink About03-07-16CITY OF LAKEVILLE CITY COUNCIL MEETING MINUTES March 7, 2016 Mayor Little called the meeting to order at 7:02 p.m. in the Council Chambers at City Hall. 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; John Hennen, Parks & Recreation Director; Daryl Morey, Planning Director; Allyn Kuennen, Assistant City Administrator; Charlene Friedges, City Clerk 3. Citizen Comments: 4. Additional Agenda Information: Mr. Miller provided an amendment to Page 1 of the February 22nd work session minutes; and he recommended the City Council table consent agenda item 6k, a Joint Powers Agreement with Dakota County for CSAH/172nd Street and Kenyon Avenue intersection improvements. 5. Presentations/Introductions Chief Long presented the Police Department report for January 2016. 6. Consent Agenda Motion was made by Anderson, seconded by Swecker, to approve the consent agenda items as follows: a. Claims for payment b. Minutes of the February 16, 2016 City Council meeting c. Minutes of the February 22, 2016 Council work session, as amended d. Agreement with Keya LLC d.b.a. Keya Board Company for stand-up paddle board rentals at Antlers Park e. Agreement with Rent -N -Save Portable Services for portable restrooms City Council Meeting Minutes - March 7, 2016 Page 2 f. Agreement with CanAm Tactical K9, LLC for the purchase of a K9 patrol dog g. Labor Agreement between City of Lakeville and Law Enforcement Labor Services, Inc., Local No. 128, for police officers h. Amendment to the Performance Evaluation Policy i. Warweg Addition 15 -day final plat extension j. Resolution No. 16-27 approving the Rainbow Child Care Center preliminary and final plat; findings of fact and conditional use permit to allow a daycare facility as a principal use in the O -R District k. (Removed from consent agenda and tabled) 1. Agreement with Climb Theatre for professional services m. Resolution No. 16-28 authorizing participation in All Hazard Mitigation Planning Process n. Hold Harmless Agreement with the Church of Jesus Christ of Latter -Day Saints for the 2016 primary and general election o. Contract for services with Ziegler Inc. for maintenance on city generators p. Temporary on -sale liquor license for Lakeville Rotary Club/Taste of Lakeville q. Legal Services Request for Proposals r. Contract amendment with KRB Development s. Resolution No. 16-29 amending Resolution No. 16-20 related to issuance and sale of General Obligation Water Utility Revenue Bonds Voice vote was taken on the motion. Ayes - unanimous 7. Lakeville Brewing Company LLC Mayor Little opened the public hearing on the application of Lakeville Brewing Co. LLC for an on -sale and Sunday liquor license, an on -sale brewpub license and an off -sale brewpub license at 8790 Upper 208' Street W. City Council Meeting Minutes - March 7, 2016 Page 3 Co-owners Don & Megan Seiler and Glen Bruestle provided a summary of their business plan and brewpub concept for Lakeville Brewing Company, located in the former VFW building in downtown Lakeville. The brewpub will include family friendly dining and a taproom serving locally crafted beer. As required by state law, off -sale is limited to malt liquor produced and packaged on the licensed premises. Mr. Seiler stated the brewpub will ultimately include outdoor patio seating. A patio application will be submitted at a later date. Chief Long presented the police report. He reported that, based on state statute and city ordinance, the applicants meet all qualifications for the licenses requested. There were no questions or comments from the audience. Motion was made by LaBeau, seconded by Swecker, to close the public hearing. Voice vote was taken on the motion. Ayes - unanimous Motion was made by Davis, seconded by Anderson, to grant an on -sale and Sunday liquor license, an on -sale brewpub license and an off -sale brewpub license to Lakeville Brewing Co. LLC, 8790 Upper 2081 Street W. Roll call was taken on the motion. Ayes - Davis, Little, Swecker, Anderson, LaBeau 8. MOM Brands Company, LLC, Minnesota Investment Fund Grant and Business Subsidy Mayor Little opened the public hearing to consider the loan of a Minnesota Investment Fund Grant and business subsidy for MOM Brands Company, LLC, d.b.a. Post Consumer Brands (Post). Tim Rossini, Senior Vice President of Finance for Post Consumer Brands, explained that the Post cereal division headquarters on Kensington Boulevard in Lakeville currently has about 350 employees. Since May 4, 2015, the company has hired 86 people at this location. Community & Economic Development Director David Olson presented the proposal for a state funded forgivable loan to facilitate the retention of a minimum of 250 jobs by MOM Brands Company, LLC, d.b.a. Post Consumer Brands. A loan agreement provides $750,000 to Post to retain a minimum of 250 jobs for a minimum of two years from the benefit date of May 4, 2015. The minimum wage rate for the retained jobs, according to the loan agreement, is $18.48 per hour. Mr. Olson pointed out that the actual wage levels for a majority of the jobs being retained is considerably higher; 82% of the jobs being retained exceed the wage level of $60,000 per year. He explained that the MN business subsidy statutes also require the company to continue their operations in Lakeville for a minimum of five years. If the job retention and minimum wage goals are not met, Post is required to repay a pro -rata share of the loan plus interest at the rate of 3.25%. City Council Meeting Minutes - March 7, 2016 Page 4 9. MOM Brands Company Property Tax Abatement and Business Subsidy Mayor Little opened the public hearing to consider the proposed property tax abatement and a business subsidy for MOM Brands Company LLC d.b.a. Post Consumer Brands. Mr. Olson explained that the City's tax abatement agreement proposes to provide the $375,000 incentive after the 250 jobs have been retained by Post for one year, which will be May 4, 2016. The properties owned by Post are currently in a Tax Increment Financing District, and the City will establish the tax abatement following termination of the district (anticipated to be December 31, 2022 with first abatement for taxes payable 2023). An interfund loan of $375,000 from the City's general fund would provide the upfront financing of the proposed tax abatement. The City will recapture the tax abatement revenues on an annual basis. Interest will start accruing at the rate of 3.5% on May 4, 2016. The minimum term of the abatement is anticipated to be up to 10 years. There were no questions or comments from the audience on Agenda Item 8. Motion was made by LaBeau, seconded by Anderson, to close the public hearing. Voice vote was taken on the motion. Ayes - unanimous Motion was made by Anderson, seconded by Swecker, to approve: • Minnesota Investment Fund Grant Contract • Resolution No. 16-30 approving a loan and business subsidy agreement with MOM Brands Company LLC Roll call was taken on the motion. Ayes - Little, Swecker, Anderson, LaBeau, Davis There were no questions or comments from the audience on Agenda Item 9. Motion was made by Swecker, seconded by Davis, to close the public hearing. Voice vote was taken on the motion. Ayes - unanimous Motion was made by Anderson, seconded by Davis to approve: • Resolution No. 16-31 approving the terms of an internal financing in connection with a tax abatement for MOM Brands Company LLC • Resolution No. 16-32 granting a property tax abatement and business subsidy for MOM Brands Company LLC Roll call was taken on the motion. Ayes - Swecker, Anderson, LaBeau, Davis, Little City Council Meeting Minutes - March 7, 2016 10. Unfinished business: None 11. New business: None 12. Announcements: Next regular Council meeting, March 21, 2016 Mayor Little adjourned the meeting at 7:43 p.m. Respectfully submitted, Charlene Friedges, City Page 5