Loading...
HomeMy WebLinkAbout10-01-90 ~e o. CITY OF LAKEVILLE COUNCIL MEETING OCTOBER 1, 1990 The meeting was called to order by Mayor Pro Tem, Betty Sindt. The pledge of allegiance to the flag was given. Roll call was taken. Present: Councilmembers Ruhmann, Sindt, Mulvihill and Harvey. Absent: Mayor Zaun. Also present: R Knutson, City Attorney; B. Erickson, City Administrator; S. Michaud, Parks & Recreation Director; D. Gudmundson, Chief of Police; K. Nelson, City Engineer; J. Hennen, Planning Assistant; D. Morey, Assistant Community Development Director; R. Wawrzon, Research Analyst; L. Gustafson, Assessment Clerk; D. Feller, Finance Director; C. Friedges, City Clerk. MINUTES The minutes of the September 4, 1990, .Regular Council Meeting and the September 20, 1990, Emergency Council Meeting were approved as printed. The minutes of the September 17, 1990, Regular Council Meeting were approved with corrections on Pages 5, 9 and 10, as recommended by the City Administrator. STAFF ANNOUNCEMENTS • Attorney: Roger Knutson requested the Council consider, under New Business, a Settlement Agreement for special assessments on Improvement Project 88-1, 172nd Street. Engineer: None. Administrator: Bob Erickson asked the Council to consider, under New Business, a resolution .authorizing the sale of four City vehicles at the State of Minnesota Auction. PRESENTATIONS/INTRODUCTIONS Mayor Pro Tem Sindt presented a service award on behalf of the City Council and citizens of Lakeville to former Police Reserve Chief Bob Cloutier. Councilmember Harvey presented a proclamation for Red Ribbon Week, October 22-28, 1990, to Dakota County Attorney, James Backstrom. Mr. Backstrom thanked the Council members for supporting the Red Ribbon Campaign, and commended the Lakeville Police Department for their active involvement in the South Metro Drug Task Force. e C~TY OF LAKEVILLE COUNCIL MEETING OCTOBER 1, 1990 PAGE 2 90.259 Motion was made by Harvey, seconded by Ruhmann to .approve Resolution No. 90-116 Proclaiming Red Ribbon Week, October 22-28, 1990. Roll call was taken on the motion. Ayes, Sindt, Mulvihill, Harvey, Ruhmann. Recognizing the unification of East and West Germany, which will officially take place on October 3rd, Councilmember Ruhmann presented a proclamation naming October .6th as German-American Day. 90.260 Motion was made by Ruhmann, seconded by Harvey to approve. Resolution No. 90-117 proclaiming German-American Day, .October 6, 1990. Roll call was taken on the motion. Ayes, Mulvihill, Harvey, Ruhmann, Sindt. Keith Nelson introduced Steve Greengard, the new Engineering Technician IL CITIZENS' COI+IMENTS • Mr. Joel Frank, 210th Street West, requested permission to keep more than three adult dogs at his ..home. without obtaining a kennel license from the City. Mr. Frank was asked to submit a written statement to the City staff, .and staff will provide a complete report on this matter to the Council prior to their October 15th meeting. CONSENT AGENDA Councilmembers removed item 7m, resolution in support of Small Business Development Loan Bonds for Arden International Kitchens. Councilmembers added to the Consent. Agenda .Item 11, Findings of Fact and Decision regarding the Jeffrey and Dorothy Barr variance; Item 12, Resolution adopting assessments for Improvement Project 88-19; Item 13, Resolution adopting assessments for Improvement Project 90-2; and Item 15b, Resolution authorizing the sale of four City vehicles at the Minnesota State Auction. 90.261 Motion was made by Harvey, seconded by Mulvihill to approve the modified consent agenda items as follows: a. Approve claims for. payment. b. Receive advisory committee meeting minutes: • Planning Commission, September 20, 1990 CITY OF LAKEVILLE COUNCIL MEETING OCTOBER 1, 1990 PAGE 3 Natural Resources Committee, September 18, 1990 Parks & Recreation Committee, September 19, 1990 Cable TV Board, September 11, 1990. c. Accept the resignation. of Richard L. Rose from the Natural Resources Committee. d. Approve Resolution No. 90-118 appointing election judges for the November 6, 1990, State General Election. e. Approve Settlement Agreement with M.G. Astelford and William G. Jackson for Improvement Project 86-3 assessment appeal. f. Approve Resolution No. 90-119 accepting the mobile home park grant project. g. Approve an amendment to the Cherry Ridge development contract extending the completion date for installation of public improvements to September 30, 1991. h. Approve an antenna lease agreement with U.S. West Paging. i. Approve a minor comprehensive plan amendment to bring the area west of Orchard Lake, south of 168th .Street and north of 175th Street into the Year 2000 Urban Service Area. j. Approve submittal of the preliminary 1991 Solid Waste Abatement Budget to Dakota County. k. Approve a permanent easement for public drainage, utility and access purposes with Kenneth and Arlene May Jensen, Charles Kenneth and Patricia Mary Nurnberg, and Richard William and Joanne Kathleen Milan. 1. Approve public trail easements for Improvement Project 90-4 .with Daniel L. and Sheila A. Coss, and Paul E. and Kathleen S. Balus. m. (Removed from Consent Agenda). 11. Adopt Findings of Fact and Decision regarding the application of Jeffrey and Dorothy Barr for a building setback variance. 12. Approve Resolution No. 90-124 adopting assessment for Improvement Project 88-19, Flagstaff Avenue street improvements, Parcel 22-00200-011-52. CITY OF LAKEVILLE COUNCIL MEETING OCTOBER 1, 1990 PAGE 4 13. Approve Resolution No. 90-125 adopting assessment for Improvement Project 90-2, seal coating portions of Districts 2, 4, 5 and 6, Parcels 22-02b00-015-25 and 22-02900-030-06. 15b. Approve Resolution No. 90-126 authorizing .the sale of four City vehicles at the State of Minnesota Auction.. Roll call was taken on the motion. Ayes, Harvey, Ruhmann, Sindt, Mulvihill. ITEM 7M Mr. Jim Stang, Director of Operations from Arden International Kitchens, requested the Council's support for Small Business Development Loan Bonds through the Minnesota Agricultural and Economic Development Board to help .finance the expansion of their existing plant in Airlake Industrial Park. He explained that an additional 25,000 square feet would increase their current $22 million plant capacity to approximately $30 to $35 million and would add approximately 124 new employees, for a total staff of 304 employees. With the City's endorsement of the resolution granting preliminary approval to the project, the company plans to begin construction in March of 1991 and anticipates an August, 1991, completion date. Mr. Patrick Pelstring, of .Business Development .Services, Inc. explained that one of the financing options available. to Arden International Kitchens is the.. potential utilization of the State of Minnesota Sma11 Business Development Loan Program. He explained that at the present time, it is uncertain as to whether the State will have a sufficient allocation available, or whether federal legislative authority will be extended to provided ample time to close this. project. The importance of the City's endorsement at this time, however, is to meet the federal .requirement in terms of providing preliminary approval of the project to authorize the tax exempt status of the bonds, (from federal and state income tax) . In answer to Councilmember Harvey's concern, Mr. Pelstring stated that approval of this resolution poses no direct - financial obligation to the project by the City, but .allows the costs incurred from this day forward to be included in the bond issue. He added that the .City may be asked at a later date to be the lead financing agent on this.. project, which would require subsequent final approvals by the City. • CITY OF LAKEVILLE COUNCIL MEETING OCTOBER 1, 1990 PAGE 5 Mr. Pelstring pointed out that there are similarities between this and a typical industrial revenue bond issue, in that they both use a major bond underwriter. Unlike a typical industrial revenue bond issue, the issuing agency would be the State, as opposed to the Gity. He further pointed out that one advantage to this program is .that the State supports the bond issue with additional reserve funding, resulting in a substantial interest savings for the applicant. Mr. Pelstring stated that unlike industrial revenue bands, the deposit is transmitted directly from the applicant, (Arden International Kitchens), to the State and is not processed through the City. Mr. Erickson requested the. applicant provide the City with a copy of that transmittal letter.. Councilmember Mulvihill voiced her concern that the company's development/expansion plans are not concrete at this time, since they are still negotiating the purchase of their present facility. Mr. Stang explained that the company will attempt to secure a second site in the Airlake Industrial .Park if they are unsuccessful in purchasing the facility .they. currently lease. In answer to Councilmember Ruhmann's question, Mr. Pelstring explained that the resolution before the Council .speaks specifically about locating the project in the .City of Lakeville, and the bonds cannot be used to finance this project in another .community. Mr. Erickson explained that based on the information available to the City by Arden International Kitchens, the City finds and determines,. in approving the resolution, that: 1) financing of the project by the issuance of tax-exempt bonds is necessary to permit the applicant to expand or remain in Minnesota and the applicant has demonstrated .that it cannot obtain suitable financing from other sources;. 2) the project will create or retain significant numbers of jobs in the City and will. add to the tax base of the State, City and other taxing jurisdictions; 3) the applicant has significant potential for growth in jobs or economic activities in Minnesota during the ensuing five-year period; and 4) .the applicant will maintain. a significant level of productivity in Minnesota during the -ensuing five-year period. These factors, he explained, are not typically found in industrial revenue bond resolutions and represent .additional economic development statements .that allow the applicant to receive more favorable financing. CITY OF LAKEVILLE COUNCIL MEETING OCTOBER 1, 1990 PAGE 6 • 90.262 Motion was made by Harvey, seconded by Mulvihill to approve Resolution No. 90-120 giving preliminary approval to a project with Arden International Kitchens, Inc., a Minnesota Corporation, and others; giving preliminary approval, with conditions, for the issuance by the Minnesota Agricultural and Economic Board, or the City of Lakeville, of revenue bonds to finance the project and providing for other matters related thereto. Roll call .was taken on the motion. Ayes, Ruhmann, Sindt, Mulvihill, Harvey. ITEMS 8-9-10 Mr. Robert Pulscher, Springsted, Inc., recommended the City Council authorize the sale of three General Obligation, (G O.) Bonds for 1990.. The $2,900,000 G.O. Bonds, Series A, will be used to finance six improvement. projects currently underway within the City. Approximately $2,063,000 will be assessed against the benefited property. The City will utilize the Utility Trunk Fund, Trunk Storm Sewer Fund and the Trails Fund to pay. the remainder of the debt service on five of those projects. The City will levy a tax to cover 50% of the costs of sealcoating, that tax to be paid over a two-year term. The $695,000 G.O. Bonds, Series B, will re-finance three existing improvement bond issues which are callable as of February 1, 1991, and .which have interest rates on the outstanding maturities ranging from 8% to 9.2%. Because -the current market rates are lower .than the interest rates which were. in effect -when these bonds were issued in 1980 and 1983, the. City can expect to have interest savings with a net present value of $63,539. The $535,000 G.O. Refunding Bonds, Series C, will re-finance the 1983 Municipal Building Bonds originally issued for construction of the Police Station, which bonds .are outstanding at interest rates from 8.4% to 9%. Once again, because interest rates are lower now than they were in 1983, the City can expect to have interest savings with a net present value of $35,146. Mr. Pulscher recommended the three. improvement .bond issues, Series A, Series B, and :Series C be sold as separate issues as opposed to combining them. He explained that the reason for this is that if market conditions .change prior. to the. actual bond sale (November 5, 1990), the .City would be in a position. to reject or cancel the refunding issues,. but could still award the Series A issue to meet its construction CITY OF LAKEVILLE COUNCIL MEETING OCTOBER 1, 1990 PAGE 7 costs.. The refunding could wait if conditions deteriorated. An overall. interest rate of 7.027% is anticipated for the bond sale. Councilmember Harvey pointed out that the Series B and Series C refunding bonds will save the tax payers. approximately $100,000. 90.263 Motion was made by Harvey, seconded by Ruhmann to approve Resolution No. 90-121 authorizing the issuance of $2,900,000 General Obligation Improvement Bonds, Series 1990A. Roll call was taken on the motion. Ayes, Sindt, Mulvihill, Harvey, Ruhmann. 90.264 Motion was .made by Mulvihill, seconded by Harvey to approve Resolution No. 90--122 authorizing the issuance of $695,000 General Obligation Improvement Refunding Bonds, Series 1990B. Roll call was taken on the motion. Ayes,: Mulvihill, Harvey, Ruhmann, Sindt. 90.265 Motion was made by Ruhmann, seconded by .Mulvihill to approve Resolution No. 90-123 .authorizing the issuance of $535,000 • General Obligation Municipal Building Refunding Bonds, Series. 1990C. Rolf call was taken on the motion. Ayes, Harvey, Ruhmann, Sindt, Mulvihill. IINFIlIISHED BIISINESS Mr. Erickson responded to a comment made by Mr. Louie Helkenn at the September 17th Council meeting in regard to the downtown crosswalk situation. He explained .that the Minn. Department of Transportation asked for the .mid-block crossing to be removed when the traffic signal was installed at 207th Street. The 208th Street crosswalk is in place and has been appropriately signed. NEW BIISINESS Roger Knutson explained that settlements have been reached between the City and all. property owners involved in the 172nd Street re-assessment, and recommended the City Council approve the resolution authorizing execution of a Settlement Agreement and adopting the re-assessment for Improvement Project 88-1. CITY OF LAKEVILLE COUNCIL MEETING OCTOBER 1, 1990 PAGE 8 90.266 Motion was made by Ruhmann, seconded by Mulvihill to approve Resolution No. 90-127 authorizing execution of a Settlement Agreement and adopting the re-assessment for Improvement Project 88-1, 172nd Street Rehabilitation. Rol]. call was taken on the motion. Ayes, Ruhmann, Sindt, Mulvihill, Harvey. ANNOUNCEMENTS Next Regular Council Meeting, October ',15, 1990. Mayor Pro Tem Sindt adjourned the meeting at 8:10 p.m. Respectfully submitted, ~~~1~ _ Charlene Friedges, City k P Be y Si t, Mayor Pro Tem •