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Home My WebLink About12-06-04 Hastings, Minnesota December 6, 2004 The City Council of the City of Hastings, Minnesota met in a regular meeting on Monday, December 16 2004 at 7:00 p.m., in the City Hall Council Chambers at the Hastings City Hall, 101 East 4th Street, Hastings, Minnesota. Members Present: Mayor Werner, Council Members Moratzka, Schultz, Riveness, Hazlet, Yandrasits and Hicks Members Absent: None Staff Members Present: City Administrator Dave Osberg, Assistant City Administrator Melanie Mesko Lee, City Attorney Shawn Moynihan, Planning Director John Hinzman, Public Works, HRA Director John Grossman, Interim Park Superintendent Kevin Smith Approval of Minutes Mayor Werner asked if there were any corrections or additions to the minutes of the regular meeting of November 15, 2004. Hearing none, the minutes were approved as presented. Council Items to be Considered: City Administrator Osberg requested that Certificate of Satisfaction-Millard Ave., Inc. be added under Administrator. Moved by Councilmember Yandrasits, seconded by Councilmember Riveness to add that item to the agenda as requested. 7 Ayes; Nays, none. Joe Beattie-High School River Study Kevin Smith introduced Joe Beattie and his students, who provided a presentation on recent river study of the Vermillion River. The Council thanked Mr. Beattie and his students for their project. Consent Agenda Moved by Councilmember Hicks, seconded by Council Member Riveness to approve the Consent Agenda as presented. 7 Ayes; Nays, None. 1. Pay Bills As Audited 2. Accept Retirement Notice of HEO Foreman 3. Accept Retirement Notice of Police Secretary 4. Accept Retirement Notice of Engineering Technician 5. Accept Resignation of Code Enforcement Inspector Minutes of the Regular Meeting of December 6, 2004 Page 2 of4 6. Application-2005 Recycling Grant 7. 2004/2005 Non-Union Compensation Schedule Adjustment 8. Resolution-Lions Club Recreation Donation 9. Resolutions-Marathon Ashland Oil and The Farmers Union Cooperative Oil Association Fire Donations 10. Budget Adjustments and Transfers 11. Mutual Aid Agreements-ALF Ambulance and Cannon Falls Ambulance 12. End Users Radio Agreement-Dakota County 13. Renew Parks and Recreation Beverage Agreement 14. Resolution Rescinding No Fault Sewer Insurance 15. Approve Economic Development Commission Members Appointments Public Hearing-2005 Budget and Truth in Taxation Hearing Mayor Werner opened the public hearing at 7:30 p.m. City Administrator Osberg provided a brief presentation on the recommended 2005 budget. He stated that the city tax rate will increase by .07480%. He stated that the public hearing is a requirement and that no other action is needed at this meeting; budget adoption and final approval will be on the December 20, 2004 agenda. Vince Teuber, 406 5th Street West, stated that the city should not be proud of maintaining the same tax rate; decrease should be sought. Hearing no further comments, Mayor Werner closed the public hearing at 7:35 p.m. Resolution-Home Occupation Permit #20~: 1505 Brooke Court (Dan Rother Photography) Planning Director Hinzman stated that this item was tabled at the November 15 City Council meeting for further staff review. He stated that staff has conducted an inspection of the property and found no significant equipment that would impact the residential nature of this property. He noted that all developing is done off-site, so no chemicals are kept on the property. Hinzman stated that the Fire Marshal has no issues or conditions with the property. Hinzman stated that staff is recommending approval of a one year probationary license. Council member Yandrasits reiterated that issues with home occupations are handled on a complaint basis; Hinzman stated that there is no record of complaints for this home occupations. Moved by Councilmember Moratzka; seconded by Councilmember Riveness to approve the request as presented. 7 Ayes; Nays, None. Downtown Riverfront Redevelopment- TIF options HRA Director Grossman and Ehlers Representative Jessica Cook stated that there are four TIF options for consideration; Option C is the option preferred by the Planning Committee of the Council. Grossman stated that several actions are requested: 1. Provide direction to staff whether to proceed with establishment of a tax increment district for downtown redevelopment and indicate the desired boundaries for the district; and 2. If proceeding with a tax increment district, a public hearing should be set for Minutes of the Regular Meeting of December 6, 2004 Page 30f4 February 7,2005. Ms. Cook briefly outlined the four options before the Council, including any "gap" that is estimated to exist among the various options. Ms. Cook stated that at least 90% of the tax increment must be used to correct the blighting conditions that caused the district to qualify as a redevelopment district. In each of the Options A, B, and C, tax increment would be used for land acquisition and/or site preparation on Block 1, and payments for special assessments for street reconstruction and streetscaping throughout the district. Ms. Cook noted that under the terms of the existing agreement with the designated developer (Sherman Associates), the City is precluded from providing assistance to other developers within the district. Mayor Wemer stated concern with using tax increment to purchase land that the city or HRA already own. Ms. Cook stated that the increment would be used to pay for improvements that would not occur if a developer was doing the project. Councilmember Schultz stated support of Option C, which includes Blocks 1 and 16 and the north half of Block 2 with esplanade/gazebo and restaurant. Councilmember Moratzka stated support of Option C, stating its coordination with the Heart of Hastings plan. Councilmember Yandrasits stated that use of TIF will be an investment downtown. Councilmember Riveness stated concern over parking. Council member Hicks stated support and potential tie-in with the Red Rock Corridor transportation project. Moved by Councilmember Moratzka, seconded by Councilmember Schultz to support Option C for a tax increment district. 7 Ayes, Nays, None. Moved by Councilmember Hicks, seconded by Councilmember Moratzka to set a public hearing on the establishment of a TIF district for February 7,2004. 7 Ayes, Nays, None. Reconsideration for Request for Certification-Millard Ave., Inc. HRA Director Grossman stated that the Planning Committee of the Council met with the applicant on December 6, and recommends that the certificate be approved and direct staff to work with the Economic Development Commission to define criteria for the use of staffing agency costs. Grossman stated that to be considered, a councilmember voting to table the issue on November 15, 2004 may make a motion to reconsider. If that occurs, that previous motion would stand to be voted upon. Moved by Councilmember Schultz, seconded by Councilmember Moratzka to reconsider the denial of the request for certification. 6 Ayes, Nays, one. Councilmember Yandrasits voting against. The previous motion stands: Moved by Councilmember Hicks, seconded by Councilmember Hazlet to approve the request for certificate of satisfaction as requested. Councilmember Yandrasits stated continued opposition to approving the certificate. She stated that she did not see any benefit to the City by waiving its policy. She stated support on waiting until a revised policy has been created. 6 Ayes, Nays, none. Councilmember Yandrasits voting against. Comments from Audience: Minutes of the Regular Meeting of December 6, 2004 Page 4 of4 Jackie Boler, 402 West ih Street. asked whether the agreement with Sherman Associates has been extended past January 20, 2005. City Administrator Osberg stated that it has not been extended. Pam Hozem, 114 Eat 2nd Street, thanked the Council for their continued work on downtown redevelopment Laurel Cox, owner of Professor Java's, 202 East 2nd Street, thanked the Council for continued work on downtown redevelopment and encouraged promptness in the process. Rich Myklebust, 1336 Eagle Bluff Drive, asked the status on clarification on what's permitted in an easement. This item has been reviewed by the Operations Committee of the Council and directed to staff to develop a policy. Ron Craft, 216 East 2nd Street, encouraged the City Council to provide redevelopment options which generate traffic downtown. Closed Door Session-Lawrence Builders vs. City of Hastings Mayor Werner adjourned the open door meeting at 8:55 p.m. Mayor Werner convened the closed door meeting at 9:00 p.m. Mayor Werner adjourned the closed door meeting at 9:24 p.m. Mayor Werner reconvened the open door meeting at 9:24 p.m. Adjournment Moved by Councilmember Schultz; adjourn the meeting at 9:25 p.m. 7 Ayes; Nays, None. seconded by Councilmember Riveness to ~ ATTESU4;fl&!JJgfwCJu City Clerk Mayor _ ..-.--.... ._~.._... .....-.-.-...-.-