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HomeMy WebLinkAbout08-26-02 WSCITY OF LAKEVILLE CITY COUNCIL WORK SESSION MINUTES August 26, 2002 Present: Mayor Bob Johnson, Council Members Mulvihill, Luick, Bellows and Rieb; City Administrator Bob Erickson; Assistant to City Administrator John Hennen; Police Investigator Bill Forbord; Finance Director Dennis Feller; Community and Economic Development Director Dave Olson; City Engineer Keith Nelson; and Deputy Clerk Judi Hawkins. Also present was Bob Shaw, reporter for the St. Paul Pioneer Press. ITEM NO. 1. REVIEW ORDINANCE AMENDMENT CONCERNING ON-SALE LIQUOR LICENSES. Lakeville Police Investigator Bill Forbord updated the City Council on current liquor ordinances and explained the need to clarify the ordinance and make it more business-friendly. Based on current population, the City of Lakeville is allowed by state statute to issue 18 licenses. Presently there are seven licenses issued in the City.. City Administrator Bob Erickson anticipates that with several proposed new developments, including TimberCrest and Crossroads, four to six new liquor license • applications will be received in the next six to eighteen months. HOM Furniture also anticipates platting one to four new lots to accommodate restaurants along Kenyon Avenue. The revised ordinance would eliminate the distinction between on-sale "A" and on-sale "B" licenses and increase the minimum investment requirement for new on-sale liquor establishments. The liquor license application has also been modified to verify if a liquor establishment is planning to have entertainment. Mayor Johnson asked if it is difficult to obtain the special legislation .required to increase the number of licenses allowed by state statute. City Administrator Bob Erickson stated that the process requires a local legislator to sponsor special legislation. No city request has ever been turned down. Council Member Mulvihill asked if the $850,000 investment requirement was realistic. City Administrator Erickson provided several examples of current construction costs and stated that based on the current Consumer Price Index (CPI) he felt it was reasonable and the new figures would not apply to existing restaurants. An establishment serving beer and wine needs to seat a minimum of 50 people, which establishes a space allocation rather than a value on the establishment, in an effort to discourage tavern-type businesses. • Council directed staff to place the proposed amendment to the Liquor Ordinance on the September 3, 2002 Council agenda. City Council Work Session August 26, 2002 Page -2- l~ LJ ITEM NO. 2. CONTINUE DISCUSSION AND REVIEW OF INTERCHANGE FINANCING REPORT AND TAX LEVY. Finance Director Dennis Feller, Community and Economic Development Director Dave Olson and City Engineer Keith Nelson were present to discuss the draft Interchange Financing Report. Several changes that were recommended at the joint Economic Development Commission/City Council meeting of August 12th have been made to the document. The Draft Interchange Financing Report recommended financing the overlay of collector streets with Municipal State Aid (MSA) funds. The staff recommended the street overlays be financed with the issuance of GO Street Reconstruction Bonds. The MSA funds could therefore be utilized to finance interchange improvements. A resolution authorizing MSA advanced funding was approved by City Council at their August 19th meeting. This advanced funding would reduce the amount of GO bonds to be issued. GO bonds are also being proposed to fund the design of proposed improvements to the 1-35/County Road 50 interchange. Issuance of these GO bonds would eliminate the proposed 2003 HRA tax levy as identified in the Draft Study. Bonds are proposed to be issued in February, 2003 to allow time for proper • notifications and meetings. City Administrator Bob Erickson stated that he had provided a copy of the Interchange Finance Study to Dakota County Administrator Brandt Richardson and discussed with him the possibility of the County accepting the responsibility for acquiring right-of--way for the I-35 and County Road 50 interchange improvements. The Interchange Financing Report assumes a 5% growth in tax base. However, Finance Director Dennis Feller had compiled figures to show debt service impacts based on what he feels are realistic estimates of 8.8°(° market value appreciation and 6.5% rate of growth in market value due to new construction.. A discussion ensued as to whether debt should be based on anticipated growth, and if so, at what rate would Council feel comfortable. The City would be able to proceed with the County Road 50/I-35 official mapping project for approximately $7.5 million, with developer contributions of approximately $2.5 million. Mr. Erickson feels that the City is in a strong position to proceed, given the favorable interest rates. Mayor Johnson stated that the 8.8% figure might be too aggressive and would prefer to err on the conservative side. He felt 7.5% would be a safe base figure, plus the additional 6.5% for new construction, for a total of 14%. City Council members and the Finance Director concurred with a total of 14%; this figure will be relayed to Springsted for them to incorporate into the report. • City Council Work Session August 26, 2002 Page -3- i Council directed staff to work with Dakota County on the right-of-way acquisition funding for the I-35/County Road 50 interchange improvements and to schedule a public hearing to approve the Interchange Financing Plan. Council further directed staff to work with Springsted, Inc. on the sale of GO Street Reconstruction Bonds. ITEM NO. 3. OTHER. BUSINESS. City Administrator Bob Erickson requested Council members attendance at and/or participation in a Metropolitan Council meeting regarding the Elko/New Market interceptor on Wednesday, August 28th at 3:00 PM. Several Council Members expressed an interest in attending. ITEM NO. 4. ADJOURN. The meeting adjourned at 6:25 PM. Respectfully submitted, e )u i h R. Hawkins, Deputy Clerk