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Home My WebLink About07-18-94 CITY OF LAKEVILLE COUNCIL MEETING i JULY 18, 1994 The_meeting was called to order at 7:00 p.m. by Mayor Zaun. The pledge of allegiance to the flag was given. Roll call was taken. Present: Councilmembers Johnson, Sindt, Mulvihill, .Harvey and Mayor Zaun. Also present: R. Knutson, City Attorney; B. Erickson, City Administrator; K. Nelson, City Engineer; M. Sobota, Community & Economic Development Director; D. Feller, Finance Director; S. Michaud,. Parks & Recreation Director; D. Gudmundson, Chief of Police; L. Gustafson, Assessment Clerk; C. Friedges, City Clerk. .MINUTES The minutes of the Juiy 5th regular Council meeting and the June 29th special Council meeting were approved as presented. • STAFF ANNOUNCEMENTS Attorney: None. Engineer: Mr. Nelson stated an informational meeting was held at 6:30 p.m. with property owners who are being affected by the Cedar Avenue assessments (agenda item #8). He stated two letters .have been submitted from. property owners objecting to the assessments. Administrator: Mr. Erickson provided the packet of information for agenda item #10 and stated a certificate of insurance has been submitted by the applicant. Mr. Erickson also provided financial statements. prepared by the Finance Director for the Police Station and Civic Arena projects. Chief of Police: Chief Gudmundson presented the June Police Department .monthly report. Parks & Recreation Director: Steve Michaud presentedthe June Parks & Recreation Department monthly report. Eileen Fondell, Senior Citizens Coordinator, introduced Traci Penner, Senior Center Assistant. CITY OF LAKEVILLE COUNCIL MEETING JtJLY 18, 1994 PAGE 2 • Dave Krings, Chief Building Official, introduced Jeanette Schneider, Inspection Department Secretary/Receptionist. CIT{ZENS' COMMENTS None. CONSENT AGENDA 94.135 Motion was made by Johnson, seconded by Mulvihill to approve the consent agenda items as follows: a. Claims for payment. b. Receive minutes of the July 5th Environmental Affairs Committee and July 7th Planning Commission meetings. c. Approve change orders for the police station expansion/remodeling project. d. Approve change order #1 with Berwald Roofing Company for the. Lakeville Givic Arena project. e. Receive 1993 City of Lakeville Financial Report. f. Approve cleaning contract with Osland Building Maintenance for the Police Station. g. Approve agreement with the Minnesota Department of Natural .Resources for the purpose of receiving an oak wilt suppression matching grant. h. Receive plans and specifications and approve Resolution No. 94-147 setting. a bid date for the public works building re-roofing .project. i. Resolution No. 94-148 accepting dons#ion of ten microscopes from ISD 194. j. Resolution No. 94-149. approving a gambling permit for the Leukemia Society of America, Minnesota Chapter,. for an event at the Chart House on November 14, 1994. k. .Resolution No. 94-150 accepting a donation from the Lakeville Knights of • Columbus to-the Parks & Recreation Department. CITY OF LAKEVILLE COUNCIL MEETING JULY 18, 1994 PAGE 3 • Roll call was taken on the motion. Ayes, Johnson, Zaun, Sindt, Mulvihill, Harvey. ITEM 8 Mayor Zaun opened the public hearing on the proposed assessments to the southeast segment of Cedar Avenue, Improvement Project 89-1. The City Clerk attested to legal notices being duly mailed and published. Mr. Nelson explained that the southeast segment of Cedar Avenue includes. all the property sou#h of 167th Street and east of Cedar Avenue. There are a total of nine parcels with six different property owners. The total amount proposed to be assessed is $396,856.23. He explained that because of the Cedar/Dodd study that was prepared for this improvement project area, several property owners claimed that the highest and best use of their land was commercial rather than residen#ial/agricultural. These property owners were compensated for right-of-way accordingly. For this reason, staff has recommended thaf the commercial rate be assessed to Parcels 7, 8 and 9, rather than the residential rate which is currently pending. The commercial rate is one and one-half times the residential rate. • Mr. Nelson explained that the City received, just last year, the County's final bill for right-of-way costs. This was delayed due to condemnation appeals, which took several years to get through the court system. He stated the actual right-of-way costs came in substantially higher than what was originally estimated, and construction costs were somewhat higher as well. The City financed 45°~ of the construction and right-of-way costs and a majority of the storm sewer improvements. The total project cost was $3.2 million. However, the County was successful in obtaining over $2 million in Federal urban aid funds. Mr. Nelson stated that while the actual project costs were higher than what was originally presented at the .public improvement hearing in 1989, the proposed assessments are based on the costs shown in the original feasibility report. Mr. Feder stated the project is being assessed at 7.86% interest over a 20 year period, with the. first year payable with 1.995 property taxes. Property owners may pre-pay assessments, without interest, within the first 30 days following adoption of the assessments. Senior citizen deferments are. available. .The City Attorney explained the appeal process, stating property owners must submit a written objection to the assessments at the public hearing. They • would then have 30 days in which to appeal to the District Court; however, he CITI(OF LAKEVILLE COUNCIL MEETING JULY 18, 1994 PAGE 4 • encouraged property owners to meet with City staff regarding their assessments. 94.136 Motion was made by Harvey, seconded by Mulvihill to receive the letters from Faith Lutheran Church, 16880 Cedar Avenue South, and Ellen & Edward McMenomy/Samuel. & Shirley Hertogs, Parcel No. 22-01000-010-26, .objecting to the assessments. Roll call was taken on the motion. Ayes, Zaun, Sindt, Mulvihill, Harvey,. Johnson. Councilmember Sindt asked why the right-of-way costs were substantially. higher than originally estimated. Mr. Nelson explained that because of the Cedar/Dodd study that was prepared after the project was constructed, the .City planner recommended commercial zoning as the highest and best use of the property, which was previously zoned residentialfagricultural. Right-of-way settlements were based on that commercial zoning. Mr. Erickson pointed out that in many instances, right-of-way settlements were twice the amount of the assessments being proposed. Mr. Ed McMenomy Jr., representing the McMenomy/Hertog parcel, stated his clients are objecting to the proposed assessments due to the fact that during condemnation proceedings, the District Court ruled that testimony regarding the highest and best use of his property as commercial was inadmissible. The condemnation award, he stated, was lower than the proposed assessment. He stated they would like to work with City staff during the next 30 days to reach a settlement. Councilmember Johnson asked if the 7.86% interest is locked in. Mr. Feller stated the bonds have been sold, and the interest is locked in. 94.137 Motion was made by Harvey, seconded by Johnson to close the public hearing; 7:.45 p.m. Roll call was taken on the motion. Ayes, Sindt, Mulvihill, Harvey, Johnson, Zaun. 94.138 Motion..was made by Johnson, seconded by Mulvihill to approve Resolution No. 94-151 adopting assessments for Improvement Project 89-1, Highway reconstruction on Cedar Avenue, 160th Street West and. Dodd Boulevard. . Roll call was taken on the motion. Ayes, Mulvihill, Harvey, Johnson, Zaun, Sindt. CITY OF LAKEVILLE COUNCLL MEETING JULY 18, 1994 PAGE 5 • ITEM 9 Mayor Zaun opened the public hearing on the modification to Airlake Redevelopment Project No. 1 and. establishment of Tax Increment Financing District No~ 14 for Lakeville Premoulded Products. The City Clerk attested that the legal notice was duly published. Mr. Sobota presented the proposed project,. which will provide assistance to Lakeville Premoulded Products, a new business venture that will manufacture and distribute packaging material using post consumer paper products. Approximately $229,000 would become available on apay-as-you-go basis to the project for site. preparation, storm water charges and land write down. There were no questions or comments from the audience. 94.139 Motion was made by Harvey,. seconded by Johnson to close the public hearing; 7:50 p.m. Roll call was taken on the motion. Ayes, Harvey, Johnson, Zaun, Sindt, • Mulvihill 94.140 Motion was made by Mulvihill, seconded by Sundt to approve Resolution No. 94-152 approving a modification to Airlake Redevelopment Project No. 1 and establishmenf of Tax Increment Financing. District No. 14 {Lakeville Premoulded Products expansion), to be located within the redevelopment project, and approving a modified redevelopment plan and tax increment financing plan relating thereto Rolf call was taken on the motion. Ayes, Johnson, Zaun, Sindt, Mulvihil , Harvey. ITEM 10 Mayor Zaun opened the public hearing on the application of Dennis Needham, dba DeJan, Inc., for an on-sale and Sunday liquor license, and a cabaret license, at Towers Restaurant & Lounge, 20800 Kenrick Avenue; 7:55 p. m. The City Clerk attested that the legal notice was duly published. Police Chief Gudmundson introduced the applicant, who is purchasing the Towers Restaurant & Lounge business from Ron Meledandri. Chief • Gudmundson stated background checks have been conducted on the CITY OF LAKEVILLE'COUNCIL MEETING JULY 18, 1994 PAGE 6 principles involved, and all are clear. A certificate of insurance has been provided. Councilmember Sindt asked the applicant if he intends to serve liquor to the hotel rooms, and Mr. Needham stated he does not. 94.141 Motion was made by Sindt, seconded by Johnson to close the public hearing; 8:00 p.m. Roll call was taken on the motion. Ayes, Zaun, Sindt, Mulvihill, Harvey, Johnson. 94.142 Motion was made by Harvey, seconded by Mulvihill to grant an on-sale and Sunday liquor license, and a cabaret license, to Dennis Needham, dba DeJan, Inc., at Towers Restaurant & Lounge, 20800 Kenrick Avenue, with the condition that liquor not be served to the hotel rooms. Roll call was taken on the .motion. Ayes, Sindt, Mulvihill, Harvey, Johnson,. Zaun. ITEM 11 Mr. Sobota presented a resolution calling a public hearing on the proposed modification to Airlake Redevelopment Project No. 1 and establishment of Tax Increment Financing District No. 15, for Century Refining, Inc. He introduced Dan Hershberger and Jeff Johnk, partners in the company.. They explained that Century Refining, Inc. is a precious metals recycling business. Currently located in Burnsville, they are seeking to construct a facility in Airlake Industrial Park. The company has applied for pay-as-you-go tax increment financing assistance. 94.143 Motion as made by Harvey, seconded by Sindt to approve Resolution No. 94- 153 calling a.public hearing by the City upon the request of the Housing and. Redevelopment Authority in and for the City of Lakeville on the proposed modification of Airlake Redevelopment Project No. 1 and establishment of Tax Incremen# Financing District No. 15, within the redevelopment project, and the proposed approval and adoption of a modified redevelopment plan and tax increment financing plan relating thereto. Roll call was taken. on the motion.. Ayes, Mulvihill, Harvey, Johnson, Zaun, Sindt. • UNFINISHED BUSINESS None.. CITY OF LAKEVILLE COUNCIL MEETING JULY 48, 1994 PAGE 7 • NEW BUSINESS Mr. Erickson stated the special census has been ~mpleted, and theresults show Lakeville's population as of June 15, 1994, at 33,279. There -are 10,925 total housing units, 356 of which are unoccupied. This makes Lakeville the 21st .largest city in the State. ANNOUNCEMENTS Next regular Council meeting, August 1, 1994 Council work session, July 21, 1994 Mayor Zaun adjourned the meeting at 8:10 p.m. Respectfully submitted, Charlene Friedges, C' Clerk Duane Zaun, May r