Alexandria, Minnesota
October 27, 2008
Pursuant to due call and notice thereof, a regular meeting of the City Council was held in the Council Chambers with those present reciting the Pledge of Allegiance, after which Senior Council Member Harvey Weisel called the meeting to order at 7:00 p.m.
The following members were present: Bigger, Carlson, Weisel, Frank
The following members were absent: Ness, Benson
Also present were two news media representatives.
A motion was made by Carlson and seconded by Frank to nominate Council Member Weisel as Temporary President Pro Tempore. The motion carried by the following vote:
YES: Bigger, Carlson, Weisel, Frank
NO: None
ABSENT: Benson
CONSENT AGENDA
A. Approve Minutes of October 14, 2008 City Council Meeting
B. Approve License Applications and Authorize Issuance
Gambling: American Legion Post #87 (conduct bingo on 11/13/08 at VFW and on 12/4/08 at Elks Lodge)
Pioneer Power Club (sell raffles for 9/26/09 event)
Tobacco: Northside Super America (renewal)
Temporary Liquor: Alexandria Area Arts Association (sell liquor at AAAA Theater on 12/5/08)
Following discussion, a motion was made by Bigger and seconded by Frank to approve the Consent Agenda with the addition of the Temporary Liquor License for the Alexandria Area Arts Association. The motion carried by the following vote:
YES: Bigger, Carlson, Weisel, Frank
NO: None
ABSENT: Benson
EDC EXECUTIVE DIRECTOR JASON MURRAY – ECONOMIC DEVELOPMENT BOARD (EDB) RECOMMENDATIONS
EDC Executive Director Jason Murray noted the EDB recently met and recommends the following items:
1. Lakewood Terrace Tax Increment Financing Application – The owners are proposing to construct a 32-unit multi-family and general occupancy dwelling. The project would construct two 16-unit buildings, each consisting of two and three bedroom units over four stories. The project is located on South Broadway, south of the Minnesota Eye Institute. The total project cost is estimated at $5.2 million. The EDB recommends the creation of a Housing TIF District, which is a 13-year increment district with the City retaining 10% for administrative fees. The Housing TIF District requires 20% of the units to be leased by individuals or families at 50% or below the Douglas County median income level. He mentioned the Council will need to adopt a Resolution calling for a public hearing.
Following discussion, a motion was made by Frank and seconded by Carlson to accept the recommendation of the EDB and adopt Resolution No. 08-68, A RESOLUTION CALLING FOR A PUBLIC HEARING ON THE MODIFICATION OF THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 AND THE TAX INCREMENT FINANCING PLANS FOR TAX INCREMENT FINANCING DISTRICTS NOS. 7, 9, 12, 14-18, 20-25, 27, AND 29-42; THE CREATION OF TAX INCREMENT FINANCING DISTRICT NO. 43, AND THE ADOPTION OF A TAX INCREMENT FINANCING PLAN. Council Member Bigger felt TIF is a right not a privilege, and she is concerned about the rent for the apartments. Mr. Murray explained under current policies 20% of the units are required to be leased by individuals or families at 50% or below the median income level. He noted in the future the City Council could put rent restrictions on housing projects. Council Member Carlson questioned if the actual rent for the apartment is for lower or moderate income families. Mr. Murray noted that is standard rental rates and no discount. The eligibility is based on income not assets. By January 15th all TIF applicants must report on how they meet the income qualifications. The above motion carried by the following vote:
YES: Bigger, Carlson, Weisel, Frank
NO: None
ABSENT: Benson
The full text of this Resolution appears in the Resolution file.
2. Tax Abatement Policy Amendment – The EDB recommends approval of amendments to the City of Alexandria’s Tax Abatement Policy. The amendment allows for the City to proceed using tax abatement for financing the Runestone Community Center ice rink floor refrigeration with abatement bonds, but also make necessary changes adhering to the State Statutes. It has job goals and criteria. It is allowing the City to use Tax Abatement for public improvements.
Following discussion, a motion was made by Frank and seconded by Carlson to accept the recommendation of the EDB and approve the amendments to the City’s Tax Abatement Policy Statement. The motion carried by the following vote:
YES: Bigger, Carlson, Weisel, Frank
NO: None
ABSENT: Benson
3. Runestone Community Center (RCC) Abatement Bond Financing – The EDB recommends the use of an abatement bond for financing the RCC ice rink refrigeration. To do so will require designating specific residential areas properties for which their City portion of their property taxes will be used to pay the abatement bond. This is an informational item only.
PUBLIC HEARING – RCC ICE RINK REFRIGERATION FINANCING
Temporary President Pro Tempore Weisel noted it was 7:15 p.m. and opened the RCC ice rink refrigeration financing public hearing.
City Administrator Jim Taddei noted a representative from Springsted, the City’s financial consultant, was present at the meeting. Springsted has suggested using tax abatement to finance the project. The advantage of tax abatement rather than using tax increment financing is it is outside the levy limit and gives the City flexibility in financing.
Tony Schertler, Vice President/Consultant with Springsted, noted tax abatement is not an actual abatement of the taxes, but rather the City uses the City portion of the real estate tax to make bond payments. It is an economic development tool. He then gave a presentation which included tax abatement, who can use it, abatement details, required findings, abatement process, bonding authority, Alexandria Abatement Project, map of the abatement area, and resolution approving abatement, a copy of which is attached to and made a part of these minutes. Mr. Taddei noted the City received a letter from the School District indicating they do not wish to participate. Mr. Schertler noted the City is proposing to use tax abatement to help finance the replacement of the ice rink refrigeration system at the Runestone Community Center. The City would collect its share of property taxes from the Abatement Parcels for a maximum of 20 years, and pledge those revenues to pay debt service on bonds to be issued by the City. The aggregate estimated abatement amount over 20 years is $1,250,000, which is the estimated principal of the bond.
Temporary President Pro Tempore Weisel then called for public comments, and hearing none, he closed the public hearing at 7:22 p.m.
Following discussion, a motion was made by Frank and seconded by Bigger to adopt Resolution No. 08-69, RESOLUTION RELATING TO A TAX ABATEMENT; GRANTING THE ABATEMENT. The motion carried by the following vote:
YES: Bigger, Carlson, Weisel, Frank
NO: None
ABSENT: Benson
The full text of this Resolution appears in the Resolution file.
CORRESPONDENCE (CONTINUED):
B. Runestone Museum Foundation – Runestone Replica Relocation – Julie Blank, Executive Director for the Runestone Museum, 206 Broadway, noted the Runestone Museum Foundation feels the Runestone Replica should remain in its current location because they feel by moving the replica; it would ruin its historic value. It was obtained by the Kiwanis Club in 1951. The Museum Foundation indicated that by moving the replica it would lose some of its historic value. It is in a wonderful location where it is. City Administrator Jim Taddei noted this was brought before the Runestone Museum Board and they took action recommending to not move it. Council Member Bigger wondered whose decision it is whether or not to move the replica. Ms. Blank stated the Kiwanis donated it to the City and the City maintains it. Mr. Taddei indicated perhaps asking for improvements to Sixth Avenue to make an entry way to the replica would be in order. Council Member Carlson stated the City Council felt that by moving the replica to the Big Ole Park it would be more accessible for the Chamber and the Museum, but if the Museum does not want it moved the City wants to cooperate with them. Council Member Bigger felt it would be better viewed if it were centrally located at Big Ole Park. Ms. Blank stated it is on the historical registry at its present location, and people specifically look for those items when traveling. Council Member Frank mentioned it would be a one-stop by locating it by Big Ole, and that the City was looking at bringing it all together. He is glad the Runestone Museum approached the City about wanting to leave the replica in its present location. Council Member Carlson stated this is not a good time to incur any unnecessary expenses for the City. She felt there could be more signage on T.H. 27 for the replica. Ms. Blank stated once it is registered with the Historical Registry, she thinks there is funding available for signage. Following discussion, a motion was made by Bigger and seconded by Carlson to direct City staff to work on increasing the visibility of the Runestone Replica at its present location. The motion carried by the following vote:
YES: Bigger, Carlson, Weisel, Frank
NO: None
ABSENT: Benson
CITY PLANNER’S ITEMS OF BUSINESS
A. Planning Commission Recommendations
1. Public Hearing – Conditional Use Application – Jonathan Lee
The applicant is requesting to allow group quarters for up to five unrelated persons in an R-1 zoning district. The property is located at 811 Roosevelt Street and is legally described as “Holes Garden Park Addn W 100’ Of: Blk 47 & S 60’ Of Blk 46, Section 20, Township 128, Range 38, Alexandria City”.
RECOMMEND DENIAL of the Conditional Use Application (C-08-018) submitted by Jonathan Lee, based on the following Facts of Finding:
1. The request is not consistent with the City’s Comprehensive Plan = Low Density Residential.
2. The request is not consistent with the character of the surrounding area; as it is predominately single-family residential uses.
Following discussion, a motion was made by Frank and seconded by Bigger to accept the recommendation of the Planning Commission and deny Conditional Use C-08-019 based upon the Findings of Fact outlined above. The motion carried by the following vote:
YES: Bigger, Carlson, Weisel, Frank
NO: None
ABSENT: Benson
2. Public Hearing – Conditional Use Application – Cowing Robards, Inc.
The applicant is requesting to allow open and outdoor storage, sales, and rental in a B-1 zoning district. The property is located at 1110 N Nokomis NE and is legally described as “2.87 AC Of G. Lot 8 Lying S Of Oak Drive & W Of Co Rd 42 (N Nokomis) Having 299.74’ On N & S Lines, Section 18, Township 128, Range 38, Alexandria City”.
RECOMMEND APPROVAL of the Conditional Use Application (C-08-017) submitted by Cowing Robards, Inc., based on the following Findings of Fact:
1. The request is consistent with the City’s Comprehensive Plan = Commercial
2. It is not applicable that the request meets land area, setback, shoreland, floodplain, and wetland requirements; as the use of an existing building is proposed.
3. It is unknown if the request will depreciate the surrounding area.
4. The request is consistent with the character of the surrounding area; as it is predominately commercial uses along Nokomis.
5. There are adequate existing utilities to accommodate the request.
6. No traffic hazards or adverse congestion to the local roadways are perceived as there are existing streets.
7. Public facilities are adequate to serve this request.
AND, the following conditions:
1. Separate sign permit needed for portable storage unit display area.
2. Striping on off-street parking to be provided as per City Code. Number of spaces to be verified by applicant based on use square footages.
3. Any exterior lighting to be hooded and directed away from street.
4. Removal of material and debris along westerly property line and truck containing wood pallets.
5. 50 vehicles and 12 storage rental units allowed on site.
Following discussion, a motion was made by Bigger and seconded by Frank to accept the recommendation of the Planning Commission and approve Conditional Use C-08-017 based upon the Findings of Fact and Conditions outlined above. The motion carried by the following vote:
YES: Bigger, Carlson, Weisel, Frank
NO: None
ABSENT: Benson
3. Public Hearing – Zoning District Amendment – LBR Properties, LLC
The applicant is requesting to rezone property from R-VA, Residential-Vacant/Agricultural to R-3 Medium Density Residential. The property is located at 4213 Pioneer Road SE and is legally described as “SE4 Ex: 2 AC In The SW Cor Of SW4SE4 & E 954.78’ Of E2SE4, Section 32, Township 128 North, Range 38, Douglas County, Minnesota”.
RECOMMEND APPROVAL of the Zoning District Amendment (DA-08-009) submitted by LBR Properties, LLC based on the following Facts of Finding:
1. The request is consistent with the City’s Comprehensive Plan = Neighborhood Mixed Use
2. It is not applicable that the request meets land area, setback, shoreland, floodplain, and wetland requirements; as the use of an existing building is proposed.
3. The request will not depreciate the surrounding area.
4. The request is consistent with the character of the surrounding area; with proposed institutional to the west, mixed residential to the north and east.
5. There are adequate existing or proposed utilities to accommodate the request; existing in CSAH 106.
6. There are adequate existing streets to accommodate the request; CSAH 106 existing.
7. The request will not place an undue financial burden on the City.
8. The rezoning will not result in “spot” zoning.
Following discussion, a motion was made by Frank and seconded by Carlson to accept the recommendation of the Planning Commission to approve Zoning District DA-08-009 based upon the Findings of Fact outlined above and to adopt for its first reading an ordinance rezoning property in the City of Alexandria. The motion carried by the following vote:
YES: Bigger, Carlson, Weisel, Frank
NO: None
ABSENT: Benson
4. Public Hearing – Conditional Use, Zoning District & Subdivision Applications – Knute Nelson
The applicant is requesting to allow a mixed use Planned Unit Development (PUD) in an R-3 zoning district and to replat platted property. The property is located at 4213 Pioneer Road SE and is legally described as “SE4 Ex: 2 AC In The SW Cor of SW4SE4 & E 954.78’ Of E2SE4, Section 32, Township 128 North, Range 38, Douglas County, Minnesota”.
A. RECOMMEND APPROVAL of the Conditional Use Application (C-08-019) and Zoning District Amendment (DA-08-010) submitted by Knute Nelson based on the following Findings of Fact:
1. The proposed project is not detrimental to present and potential surrounding land use.
2. Land surrounding the proposed development can be planned in coordination with the proposed development and can be developed so as to be mutually compatible.