CITY OF BLUE EARTH
MINUTES
CITY COUNCIL MEETING
Monday, October 17, 2016 5:00 P.M.
CALL TO ORDER
Mayor Scholtes called the meeting to order at 5:00 P.M.
ROLL CALL
Councilmembers Gaylord, Huisman, Brod, Erichsrud, Warner, Cassem and Mayor Scholtes were present. Staff members present: City Administrator Timothy Ibisch, City Attorney David Frundt and City Engineer Wes Brown.
DETERMINATION OF A QUORUM
Quorum present.
PLEDGE OF ALLEGIANCE
Mayor Scholtes led the pledge of allegiance.
MEETING OPEN TO THE PUBLIC
Public Present; FCDC Director Tim Clawson, Wendy Cole and Ross Pollard.
There was no public comments at this time.
APPROVAL OF MINUTES
Motion by Gaylord, second by Huisman to approve the minutes from the Council Meeting of Monday, October 3, 2016. The motion was approved unanimously.
LICENSES AND PERMITS
There were no licenses or permits at this time.
CORRESPONDENCE
Boy Scout Thank You for allowing them to use of the Fairgrounds on Friday through Sunday, September 23-25th.
REPORTS FROM STAFF
City Attorney David Frundt has no report at this time. City Administrator Tim Ibisch asked Frundt about a dead tree issue on a property that is not on the boulevard but sitting on the edge of 2 properties. It is undetermined whose tree it is because of the location on the property line. Ibisch reported that he had explained to the resident that the City could not legally go onto the property to remove the tree and it is not a danger to the public. The issue is a civil issue between two neighbors. Frundt reported that if there is an alley way that might be affected, the City might be able to address the concern. However, if not the City does not have any jurisdiction on the dead tree that sits on a property line in the middle of the parcel. Frundt noted that in this case it is a civil issue and the neighbors need to sort it out.
Scholtes reported that the September liquor sales are up.
Scholtes noted that the September Police Reports were provided. Warner noted that calls were down.
REPORTS FROM BOARDS AND COMMISSION
The meeting for the Library Board is scheduled for 11-4-16.
Minutes from the Economic Development Authority Board meeting of 9-8-16 were provided.
Minutes from the Housing and Redevelopment Authority meeting of 9-12-16 were provided.
Minutes from the Senior Center Board meeting of 9-13-16 were provided.
Minutes from the Faribault County Fitness Center Board meeting of 9-26-16 were provided.
The next meeting for the Board of Public Works is scheduled for 11-14-16.
The Airport Board is scheduled to meet on 10-19-16.
REPORTS FROM STANDING COMMITTEES OF THE COUNCIL
Motion by Gaylord, second by Huisman to accept the reports of the Boards and Commissions as presented. The motion was approved unanimously.
PUBLIC HEARINGS
Time being 5:05 P.M. Mayor Scholtes opened the Main Street Assessment Hearing. Brown noted that there was 1 property owner present: Ross Pollard.
Brown presented a “Power Point” for the Main Street and 6th Street reconstruction (see attachment “A”). Brown reported that this is the standard hearing for streets in accordance to chapter 429 of the Minnesota Statutes. Brown reported that the statute requires that at least 20% of the project be assessed to the benefitting property owners in order to use the 429 bonding authority.
Brown reported that the Council will adopt the assessment roll as presented or potentially delay the action till a later date. Once the Council adopts the assessment roll the information will be levied to the County to place on the tax roll to begin in 2017 for a 15 year term at 4.1% interest rate.
Brown reported that the assessments can be paid in full without interest charges if paid in full or a portion of the assessments within the 30 days of tonight’s hearing. Brown noted that at any time within the 15 years the assessments can be paid in full. Ibisch reported that residents can come in and pay the assessments at City Hall before Thanksgiving without any interest being added.
Brod asked if the amount given on tonight’s assessment roll is in fact the true amount. Brown reported that the amounts are the exact amount and represent the properties the additional amounts charged to the properties to connect the water through the building wall and are the final numbers if the Council should choose to adopt them tonight.
Having no other discussion for the hearing Mayor Scholtes closed the hearing at 5:15 P.M.
Motion by Gaylord, second by Erichsrud to adopt Resolution 16-17;
A Resolution adopting final assessments for the Main Street reconstruction and a portion of west 6th Street Improvements.
WHEREAS, pursuant to proper notice duly given as required by law, the Council has met and heard and passed upon all objections to the proposed assessment for the improvements of 2016 Improvement No. F17.108135, improving Main Street (CSAH 6) from 5th Street to 7th Street, and Sixth Street from Nicollet Street to Main Street (CSAH 6) including sanitary sewer, water main, storm sewer, street construction, sidewalk and boulevard improvements, and open to the public for inspection
NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BLUE EARTH, MINNESOTA:
1. Such proposed assessment, a copy of which is attached hereto and made a part of hereby
accepted and shall constitute the special assessment against the lands named therein, and each
tract of land therein is hereby found to be benefitted by the proposed improvement.
2. Such assessment shall be as follows:
a. The assessments shall be payable in equal annual installments including principal and interest extending over a period of 15 years with interest at a rate of four point one percent (4.1%) per annum, in the amount annually required to pay the principal over such period at such rate, the first of said installments to be payable with general taxes for the year 2017, collectible with such taxes during the year 2032. Interest shall accrue from and after 30 days following adoption.
b. The owner of any property so assessed may, at any time prior to certification of the assessment to the County Auditor, pay to the City Treasurer, all or part of and thereafter at any time prior to November 16 any year pay to the County Auditor, the whole of the principal amount of the assessment on such property provided that no such prepayment shall be accepted without payment of all installments due to and including December 31 of the year of prepayment, and the original principal amount reduced only by the amounts of principal included in such installments computed on an annual amortization basis.
3. The City Clerk shall forthwith transmit a certified duplicate copy of this assessment to the County Auditor to be extended on the tax list of the County.
Resolution 16-17 passed unanimously.
Brown had no further report for the North Main Street Bridge reconstruction project.
Brown reported that the crosswalks were paved today on Main Street. The joints will be sealed on Thursday or Friday this week. Brown reported that by the end of next week the striping will be completed and signage will be installed. The street should be fully opened by next week.
Ibisch noted that the front steps of City Hall were removed today. The sidewalk and the steps will be completed this week.
At this time Mayor Scholtes addressed Faribault County Development Corporation (FCDC) Tim Clawson who was present to discuss the “Three Sisters” buildings on the corner of Main and 7th Street. Clawson reported that there have been several people that have been interested in touring the buildings from the Community as well as EDA, Faribault County EDA and HRA Board, City Councilmembers and County Board members. The building appears to be fairly sound. However, there is personal property that will be auctioned off in addition to garbage, recycling material and some hazardous items in the basement that will need disposing of. The County’s “Sentence to Serve” will be contacted to assist in carrying out the material from the buildings to be placed in dumpsters or trailers as needed. There will be a process to work through the pianos and organs to haul them out of the buildings and store them off site in order to sell on an auction at some one point in time.
Clawson reported that he and Ibisch will be meeting with the County Board tomorrow to discuss the buildings. There is interest in the City/EDA in purchasing the property. Clawson reported that there is interest in keeping moving forward with permission to proceed with notification for an auction of the contents or personal property in the 3 buildings. Clawson reported that there is talk that some of the pianos actually belong to individuals that had tried to get them back from the previous owners but were not able so all of this will be researched and people will have to prove ownership before we can release any items.
The EDA will be looking at getting estimates for replacing the plywood with glass on the 3 storefronts. A roofing contractor will be contacted to assess the roofs on all 3 buildings making sure they are sound. Clawson reported that it does not appear to have much damage on the inside. Clawson reported that action will be taken to secure the buildings before winter.
Huisman asked if at the County Commissioner’s meeting tomorrow is they will have to make a motion to give the City first chance to the buildings. Clawson reported that they would like that to happen. Clawson reported that John Thompson has indicated that he will be turning over to County Attorney Troy Timmerman to work with City Attorney David Frundt to address the actual 60 day notification for the auction of the contents of the buildings. Frundt reported that the building process itself is different than the contents. The County has the ability to authorize a sale of the contents. Scholtes reported that at the EDA meeting last week they felt it was important to clean out the buildings then have a better chance to show the buildings once they are cleared of all contents which might give a better chance to get someone interested in purchasing the buildings. Scholtes reported that the EDA does have programs to assist any interested people. Clawson reported that he has had interested parties in purchasing the property.
Gaylord appreciated the tour but expressed concerns over the City having a risk in the previous owners taking retaliation toward the City. Gaylord noted that there could be mold and asbestos to clean up. Gaylord felt that if the City and the County worked together on the clean-up rather than the City being the sole entity in cleaning up the buildings and the cost. Clawson discussed the buildings and how he would like to see the process work. The HRA, EDA and the Faribault County EDA have all expressed interest in providing assistance in addition a private developer. Once the personal property is out, the next step is to inform the public that the property is for sale and that the City has programs to assist them. The goal is to get the property into private hands as soon as possible. Clawson would like to see an agreement with the County to keep the ownership as it is until another party is found. They could go forward and auction the items off. The person who then comes forward with the most money first and sign a development agreement and give their plan for their development. Or there could be the party that wants to purchase 1, 2 or all 3 and start a business. The EDA will review any proposal given and say who has the best idea and credibility to make a successful venture. Clawson did not recommend that the City take ownership until we are further into the process and have site control. The goal is to get the buildings back on the tax rolls and be useful to our community.
Huisman agreed to what Clawson said but also noted that the County faces the same thing in every city within the County. In the end these are buildings in downtown Blue Earth and if the City wants something to happen in a positive way, Blue Earth may have to take some risks such as was done with the Ag Center. Scholtes reported that discussions with the EDA have discussed putting in new windows and redo the roof on the 3 buildings. The County still owns the buildings so if the City were to do any maintenance on the buildings we need the County’s permission. Scholtes reported that the EDA has money in the revolving loan fund and are willing to put money toward those buildings as does the HRA. Scholtes reported that keeping the issue moving forward is the goal. Gaylord did not disagree but wanted help from the County and not take the buildings on ourselves. Clawson reported that maybe the Faribault County EDA could be the mechanism that will be involved. Ibisch reference the report from 2012 that noted that at that time it was estimated that it would take $113,000.00 and $200,000.00 of work was needed to bring the buildings back into commission.
CONSENT AGENDA
None.
OLD BUSINESS
At this time Mayor Scholtes addressed the Henke Deferred assessment request. Ibisch reported that the total deferred assessment is $8,067.85 on parcel number 21.552.0260 at 213 North Circle Drive. Ibisch reported that this would be an age related senior deferral and would be paid when the sale of the property happens. Ibisch recommended approval of the deferment request.
Motion by Gaylord, second by Brod approving the Senior Deferral for Gerald and Evelyn Henke Parcel number 21.552.0260 in the amount of $8,067.85 for the property located at 213 North Circle Drive. The motion passed unanimously.