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HomeMy WebLinkAboutSP July 29, 1986 CITY of ANDOVER SPECIAL CITY COUNCIL MEETING JULY 29, 1986-AGENDA l. Call to order - 7:30 P.M. 2 . Public Hearing/Tax Increment Financing 8:00 3 . Public Hearing/Jay Street Storm Drainage/IP86-21 9:00 4 . Park Board Interview/Jeff Kieffer 9:30 5. Park Board Interview/Joan Harms 6 . Supplemental Assessment/85-5 & 86-8 7. Hire Engineering Secretary 8. Hire Engineering Technician 9 . 10. Adjournment CITY of ANDOVER SPECIAL CITY COUNCIL MEETING - JULY 29, 1986 MINUTES A Special Meeting of the Andover City Council was called to order by Mayor Jerry Windschit1 on July 29, 1986, 7:30 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Councilmen present: Elling, Knight, Lachinski, Ortte1 Councilmen absent: None Also present: City Attorney, William G. Hawkins; City Administrator/ Engineer, James Schrantz; and others PUBLIC HEARING/TAX INCREMENT FINANCING James Casserlr, Miller & Schroeder - explained the overall tax increment financing program ln whlch the Clty lS deflning a development program in an area to improve the environmental and deteriorating conditions within the development district. The financing is done through the capturing of the increased value from the tax increment district and will not raise taxes in any way. Mike Lund - asked which area of Bunker Lake Boulevard is being considered for thlS lnvestment. Council reviewed the map of the tax increment district and the areas along Bunker Lake Boulevard in the LI and GB district which are being con- sidered for redevelopment; but it doesn't mean the funds would be used for every parcel within the boundaries defined. Mr. Lund - asked if the City would buys this land but not invest any money unless there is what they consider a constructive business. Mayor Windschit1 explained the options available, noting the City has made no decision on the specific procedure at this time. This is the beginning of what would be an industrial park area. Either the City could acquire the land or the property owner could develop it with the help of TIF funds. Mr. Lund - asked who would make the decision as to what is an appropriate business. Mayor Windschitl didn't think there was an exclusion or inclusion of any type of business as long as it met the zoning requirements. Marty Mardaus - asked if.he understood correctly that the City is looking at the southern portion of Andover again and going to turn it into an industrial park. Mayor Windschit1 stated his property is not included for commercial redevelopment, only along Bunker Lake Boulevard, Jay Street, and on Hanson. Councilman Lachinski thought the intent was not to change any zoning at this point. Mrs. Mardaus - stated last time they were here they were told they would be rezoned. They haven't heard anything and they don't know where they stand. Council noted the three or four ten-acre pieces on the south that are residential with a zoning classification of General Industrial. There has been discussions about rezoning those to residential. Councilman Knight stated he was told someone from that area wou 1d be cooling in with a petiti on for that rezoning. ' Mr. Smith - stated he talked to some of the people who didn't want it rezoned. Mrs. Mardaus - asked if there was more than one that objected. Mr. Smith - stated he thought so. Special City Council Meeting July 29, 1986 - Minutes Page 2 (Public Hearing/TIF, Continued) Mr. Mardaus - didn't think there was anything that was going to be done that wouldn't affect his taxes. Council explained how the City captures the increment under this program for the repayment of the bonds used for redevelopment. Mrs. f1ardaus - asked what is the City trying to do and what is the money needed for. They are concerned what the City is going to do. Council again explained the possibility of acquiring land or of a property owner developing his property for industrial park-type development. Mrs. Mardaus - asked if they are still thinking of putting in the school across the street from them. Council again reviewed the map, explaining it is to raise money to clean up some of the blighted areas and convert them to a different use. Mr. Mardaus - asked why he should clean it up with his money. Why can't the property owners clean it up. Mayor Windschit1 explained it is not his money, it is the tax dollars that would normally go to other sources. Ken Hei1, Andover Boulevard - stated according to the map, it should not include hlS property north of Section 34. Councilman Ortte1 explained there is a financing district where taxes will be generated from to be used in the project area, which is the area to be redeveloped. It is not current taxes, but increased taxes having to do with future development. Mayor Windschitl stated his parcel may have been picked up because of the area he used to own south of the creek. Mr. Heil - stated he still owns property south of the creek. Counci 1m an Lachinski stated that area south of the creek is within the financing district, so if there is some development there, the increased taxes could be used to help fund the redevelopment. Mr. Heil - stated it appears the City is going 40 acres wide on either side of Hanson. Council indicated it is further than that. It goes up to the creek on the east side of Hanson Boulevard. Mr. Heil - stated the only two addresses given notices were 003 and 004. There are contiguous lots on the creek, indicating lots 005 and 006 should also be picked up. Council stated that will have to be checked. Barb Duerr, Bunker Lake Boulevard - stated the proeprty on the east side of her is now belng developed for housing. It is zoned residential, as well as her property and that to the east of her. What is making an industrial park across the street from her property going to do to her valuation? Mayor Windschitl thought part of her property has a commercial zone on it and has had for years. Ms. Duerr - expressed surprise, asking why, when the sewer and water was coming through and when Menkveld rezoned his to residential, she was told that the property on the east side was all residential. Mayor Windschitl explained whoever decides to do something other than commercial on that property should request a rezoning. Mr. Hawkins clarified the mechanics of how the tax increment financing works as to how increased taxes are captured and used to create commercial areas to attract businesses and to generate more taxes and jobs. The hearing tonight is on the overall development area plus on the plan that calls for improvement. Council noted an error on the project map, that the intent was to include the entire area along Bunker Lake Boulevard from Hanson Boulevard westward to the area shown on the project map, including Pankonin Addition but excluding Kotke's Bus Company. ~1ayor Windschitl stated the significance of the project map is if there are properties not included but where the owner wishes to develop, those property owners should express a desire to be included tonight. Special City Council Meeting July 29, 1896 - Minutes Page 3 (Public Hearing/TIF, Continued) Mr. Lund - asked the boundary for project development along Bunker Lake Boulevard. Attorney Hawkins noted it is the western boundary of the Good Value development, noting all the property owned by Good Value Homes. They are developing that area into single family homes, and that is the extra tax money the City will be taking to redevelop the area along Bunker Lake Boulevard. Mr. Lund - stated then basically what the project area consists of is just the Junkyard area. Mr. Hawkins stated the junkyards and the new single family housing area. The areas north of Bunker Lake Boulevard are included because of their potential development, and the City would then have the ability to take the increment off those parcels as well. Ms. Duerr - asked whether she can or cannot have her property rezoned at the time the lncrement is captured. Mr. Hawkins stated this has no affect whatsoever on the zoning of her property. The reason the area around her is included is if there is development and the City wanted to generate more money, they would have the ability to do so from that area. Mr. Lund - asked can the money be used to acquire the land. Mr. Hawkins stated that is up to the City and whatever the developer coming in proposes. The City would have the money available to encourage development through either acquisition, extension of utilities, etc. Mr. Lund - asked what if the developer decides to buy single family houses. Also, who decldes on what price the land will be acquired for. Mr. Hawkins stated to acquire land the City has the property appraised and must also pay for the property owner's appraisal if asked for. If a price cannot be negotiated, the City can go through the eminent domain procedure, explaining that process to the residents. Councilman Orttel also noted there is no intent to subsidize any housing developments. It is for industrial development only. Councilman Knight also emphasized this will not affect taxes, neither raise them nor lower them. Mayor Windschitl stated the intent is to work with the developers and property owners to develop the area. The eminent domain procedure would be the last resort. The hope is to have the property owners or other developers come forward to do something to add value of jobs, buildings, etc., to the property. Attorney Hawkins stated this gives the City money to provide an incentive to assist financially for these developments. JoAnn Wilber - felt before this is done, all the junkyards should have the right to vote on this. She didn't feel there were that many of them that needed to be cleaned up, except possibly for the tires. Mayor Windschitl stated nothing being done is designed to cause a problem with her right now. If, in the future, she wanted to do something other than the present operation, there is a vehicle here to try to help finance it. That is true of any of the properties inside the district. Ms. Wilber - stated then they can stay there as long as they want just as they are. Mayor Wlndschit1 stated this is not designed to take away her operation. But at some time if some future council decided to do some development on her property, they would have to work with her or, as last resort, use eminent domain proceedings to acquire the property. Ms. Wilber - stated that doesn't seem fair. Mayor Windschit1 stated the intent lS to try to work with the property owners. It clearly is trying to create jobs and to clean up an area for the betterment of the City. Ms. Wilber - stated he is saying the City can just come along and buy their property and they don't have a business any more. Council discussion was the feeling there will be ajoining property owners or developers who want to use this vehicle for Special City Council Meeting July 29, 1986 - Minutes Page 4 (Public Hearing/TIF, Continued) redevelopment to where the Council should not have to resort to eminent domain. Attorney Hawkins also pointed out that eminent domain really has nothing to do with this. That is a procedure all cities have to acquire any piece of property within the City for public purposes and is a procedure they have always had under the laws of r1innesota. Ms. Wilber - wanted to make sure the City doesn't come along and just take their property away. Councilman Knight stated he would have trouble with that. This proposal is an excellent way for those who own land to either develop all or part of it. It gives funds available to help them with that. Mr. Lund - asked for an example of how the funds would be used. Council noted the funds could be used for cleanup of the land, streets, sewer and water, etc. Mr. Lund - stated what if he wants to keep the land himself. Council noted it can be done that way also. Don Boeke - asked if property can be included for the increment at a later date, asklng lf he should include his property this evening. Council noted there are no plans for anything in that area now. It is the Council's hope that the four or five parcels of property in the southern end of Jay Street reach an agreement as to whether they want to be rezoned to residential or remain commercial. Ri ght now it appears residential development is popular; but that's not to say the commercial development wou1dn't'bemore vahab¡e in the fwture. Mr. Boeke - stated he can't sel,l'and bui ld houses there as long as it is commercial. Councl1 noted that is correct. The Council would like to see a petition for rezoning to residential from those who want to remain residential, though it should be contiguous property. Then the balance, if any, would remain permanently zoned commercia 1. Mrs. Mardaus - stated along Hanson where the power line is located, it seems it may be possible for someone to want the front portion of the lot to be commercial though the back half may already have a house on it. Is it possible to split property? Council noted it may be possible if there is some logic as to what is taking place. The City does not favor spot zoning, but it may be logical to have a strip of commercial along Hanson Boulevard. Mr. Mardaus - stated his house is in front of the power line. But there is a 150- foot easement underneath the power line. He stated with Good Value developing to the east and Coon Rapids developing residential to the south and landfill or park across the way, everything around them is already developing into residential. The commerci a 1 area along Bunker Lake Boulevard is already established. The lower area is already more closely related to the residential area developing around it. At the 1 ast meeting the Council mentioned rezoning to residential the last three la-acre parcels on either side of Jay Street because of the drop involved with the lateral lines. He was irritated that everyone complains about the junkyards every time there is a meeting. They are a good viable business. Some need to ~e cleaned up, but most of them have. Personally he felt on the southern end they should be residential. Mrs. Mardaus - felt the people who own the lots in question should get together to declde what they want. Counci 1 agreed. John Peterson, Good Value Homes - went on record as being in favor of the tax increment financlng dlstrlct, thinking it will benefit the area tremendously. He questioned the project map as to excluding the jog of their property along Bunker Lake Boulevard where they were proposing to do some commercial development, possibly within two years. It is a separate parcel, but they are buying it. He would like to see that included in the project area. Council agreed. Special City Council Meeting July 29, 1986 - Minutes Page 5 (Public Hearing/TIF, Continued) Marian Heidelberger - asked if she would decide to sell to the City, would she have to take the Clty appraiser's value. Mayor Windschit1 stated if it is a voluntary agreement, it would be based on some appraisal that the City had. If it was condemna- tion, the prq:¡erty owner has a right to get his own appraiser; and the City has to pay that fee. Ms. Heide1berg~r - stated she had an appraisal done about five years ago. But she's acqulred more land since then. But she thought the City appraiser would value it less than someone else. Attorney Hawkins explained the City has a gentleman looking at land values in that area. The City will show her the appraisal once it is available. If Mrs. Heidelberger wants to get her own appraisal done, the City will pay up to $300 for it. Then the two parti es wi 11 attempt to reach a compromi se. Ms. Heidelberger - stated she knows the City or County appraisers, when working for the government, do appraise lower than the independent appraiser. Attorney Hawkins stated hopefully both appraisals will give a fair value and then it can be negotiated. If not, then the City has the option of condemnation. M. R. Olson - asked why the 30 acres of ~1rs. Sonterreis excluded from the project area. Council noted it is in the overall area but no plans for development are eminent. The City receives the tax dollars only if development occurs, and it can be included later if needed. Ms. Duerr - asked if the area zoned commercial that is just to the east of her and WhlCh is owned by her uncle is included in the project area. Counci 1 stated it has a Limited Industry classification. Ms. Duerr - stated a developer has approached them stating he would put housing on It. Would her uncle have to come to the City to have it rezoned? Counci 1 stated yes, or it could be done simultaneously with a plat by the developer. The reason this parcel was included in the project area is the City is anticipating it to be developed relatively soon. ~1s. Duerr - stated it wi 11 be deve1q:¡ed very soon. ~ - asked why Stanton's parcel on Jay Street isn't included, knowing that Wl e eve loping very soon. Council stated it is not really known what is happening to those parcels west of Jay Street. If development is to occur, it can be included. Mr. Olson - understands on the border of Coon Rapids and Andover will be 133rd Street going through there. Are there any plans for any street t~come into Andover off 133rd. Mayor Windschit1 stated Jay Street and Hanson. Good Value has a number of streets that tie into it. Plus there is the projected relocation of Crooked Lake Boulevard. Ms. Wilber - for the houses in the Good Value development abutting the junkyards, she asked how long are those residents going to put up with that. Councilman Ortte1 indicated those lots backing onto the junkyards are extra deep. Mr. Peterson - stated there is some wetland and they plan to berm on those lots that are not as deep. Mr. Boeke - stated there are no plans for a street from Good Value going east toward Jay Street. Mr. Peterson - stated the Planning Commission has asked them to look at that question. Possibly he should be talking to the neighbors about that. Mr. Boeke - asked then he would be closed off from the west side since Good Value would be putting horseshoe streets to 133rd. Special City Council Meeting July 29, 1986 - Minutes Page 6 (Public Hearing/TIF, Continued) Mr. Peterson - stated the original proposal did not show a road from the horseshoe to Jay Street. If it is done, he thought there would only be one road going in that directi on. Of the four lO-acre parcels, that would only be adjacent to one parcel, or possibly split between two. That has not yet been decided. Mr. Boeke - was concerned about that, thinking they would want a street going out to Jay Street somewhere. Mr. Peterson - stated they would be happy to talk with Mr. Boeke about it. Mayor Wlndschitl stated this just points out the difficulty the Council is having not knowing what is to be done with those four parcels. He hoped people could decide as soon as possible. Mr. Boeke - stated he'd like to sell and get out of there. Council discussion also noted another correction to the project map that the north- south line along the Menkveld property should come straight down to Bunker Lake Boulevard. Mr. Olson - hasn't heard what kind of help the City intends to give a developer who wants to develop some land. Council indicated it depends on the development proposal and what help can be provided as to assessments, soils corrections, etc. Mr. Olson - stated in other words the City wouldn't loan this money but give it to the developer. Council stated this is true. Mr. Olson - stated then why can't the landowner get some of that money. Council stated lt doesn't matter whether it is an existing landowner, a future landowner, or a developer. Mr. Olson - asked if the money can be used for building the building. Council stated no, only the accessory costs, blacktopping, assessment costs, and anything connected with the land preparation. It cannot be used in any way with the structure that goes on the land. Mr. Lund - asked if it can be used for fencing. ~1r. Casserly stated that must be examlned on an individual basis. It is more with the preparation of the site for the building. Council noted this isn't intended to drive people off their prop erty. Hopefu 11y some wi 11 come forward with proposa 1s for development of their property. Council also explained the mechanism is used in other cities to develop property that normally would be economically unfeasible to develop. Mr. Peterson - asked if soils correction is applicable for TIF. Mr. Casserly stated absolutely. There are potentials such as berming, sidewalks, boulevards, removal of wastes, etc., that enter into this. Mr. Olson - stated it sounds like the opinion of the Council is that the City should acqulre the land rather than try to help the landowner. Counci 1 stated either way; that it doesn't matter to the City. It is the City's way to help those in that area to improve their properties. Mr. Olson - got the feeling the City would like to acquire some land right now. Mayor Wlndschitl stated only if that would be the way of doing it. If he came forward with his parcel and wanted to do something with it, the City would just as soon do it with him rather than acquire,it. Council also noted that it is not merely a "gift" by the City, but the developer or property owner must guarantee that that development will take place. Mr. Casserly stated in the long run the City is getting an improved property value. The school districts are not losing any money because the State Aid formula picks up any deficiency. Also, the City has complete control over this. Special City Council Meeting July 2~, 1986 - Minutes Page 7 (Public Hearing/TIF, Continued) Council briefly reviewed the prepared resolution, noting the three changes pointed out this evening on the project map: The inclusion of Pankonin Addition and the one lot west of Jay Street, the northeast corner of the Good Value property, and the southern part of the Menkveld property. NOTION by Lachinski, Seconded by Elling, introducing a Reso\ìütion establishing and designating development District No.1 and Tax Increment Financing District No.1 and approving and adopting a development program with tax increment financing plan related thereto with the addition of the parcels included on the map at tonight's meeting. (See Resolution R112-86) Motion carried unanimously. Mr. Casserly explained the City can wait for the increments to come in or it can bond and use the increments to payoff the bonds. One of the changes going on at the federal level is a very severe restriction of local government use of tax increment financing for the public side of the development activity. Congress is looking at severely limiting that after September 1. One of the options he is looking at is the option of doing the bonding in August, put the proceeds in escrow and not spending those proceeds until it is known development is going in. Council briefly discussed it, thinking it would be appropriate. Attorney Hawkins noted with the other bonding the City is doing in August, he would have to determine whether or not it is feasible for the City to do this bonding as well. It would be about a $4.8 million bond issue. He stated he would look into the matter and report back at the August 5 meeting. Public Hearing closed at 8:50 p.m. PUBLIC HEARING/JAY STREET STORM ORAINAGE/IP86-21 Terry Herman and Mr. Ringrose, BRW, Engineers for the City of Coon Rapids - revlewed the storm sewer drainage system for the contributary area from both Coon Rapids and Andover. The drainage district ultimately drains into Coon Creek. Coon Rapids, as a result of development pressures, has begun a series of improvements through ditching and storm sewer projects, explaining the ultimate storm sewer system as proposed by their firm. They also reviewed the areas that have already been assessed, those areas proposed to be assessed as a result of this public hearing (including those properties within Andover west of Jay Street which contribute to the system), and those areas which will be assessed in the future when the remainder of the system is completed (which also includes properties within Andover east of Jay Street). It is proposed that Coon Rapids and Andover jointly share in the cost of constructing those facilities in pr;oportion to the land area and drainage within each city. The estimated cost for the present improvement is $86,000, with Andover's share expected to be approximately $50,000. Mayor Windschitl asked the plan as 133rd is bui1tfromthe realignment of Crooked Lake Boulevard. Hòw will Good Value Homes pick up the storm sewer line. The Engineers thought their property would discharge into the low area on the west side of Osage Street, which outlets into the system through natur~ drainage. There will be a positive outlet from that lowland. That will be a small lateral system within their development. Mr. Peterson - stated they haven't talked about that drainage at all yet. They assumed they could serve that area into the lowland pointed out. With this comprehensive plan and the two cities working together, he didn't think there would be a prob lem. Mayor Windschitl felt before any agreement is signed, Andover Special City Council Meeting July 29, 1986 - Minutes Page 8 (Public.Hearing/Jay Street Storm Drainage/IP86-21, Continued) must have written assurances or engineering design that shows a positive outlet for that water. The Engineers stated that is the commitment of Coon Rapids to provide that. The exact nature of that must wait until the exact details are done when that area develops. They will also be coordinating the plats within Andover and Coon Rapids regarding the storm drainage. Mr. Peterson - asked why isn't the trunk on 133rd going west on their property. The Engineers explained at some point the pipe becomes so small that it is considered a 1 atera l. It is a matter of definition. They are assessing lateral benefit on the trunk line. They have estimated the costs of the construction of the entire trunk systEffi from the discharge point at the creek to the headwaters. Included are the acquisition of property, ditching, etc., and it is allotted to the entire district. The Engineers went on to explain they have done a little work on the project each of the past two years, and more will be done as development occurs and as necessary. Rather than assessing the entire area in advance of the improvement, Coon Rapids has been running assessments annually in adequate amounts to cover the costs of expansion each year. All the properties within the drainage basin will be assessed the same assessment rate, the reflective cost increased based on the Engineering News Record Index. The resulting costs are $1,181 per weighted acre. Industrial property is proposed to be assessed at a higher rate than the residential properties because traditionally they have a higher percentage of storm water runoff. The nonbuildab1e areas are excluded from the assessment. Mayor Windschitl asked if the boundaries could be moved such to include entire lots, such as in Mr. Boeke's case. The Engineers stated if it is physically able to be made to drain in that direction and it isn't a major change to the systEffi, it would be possible to include them. But the sooner that decision is made, the better. Mayor Windschitl explained within Andover, the area west of Jay Street would have an ilTTllediate assessment. The area east of Jay Street would not be assessed at this point but is included in the drainage basin. Discussion was when the remaining areas within Andover would be assessed. The Council felt Andover should be assessed at the time a plat is filed, but Coon Rapids is expecting to have it assessed at such time as the improvement is needed. That language within the joint powers agreement still needs to be negotiated. The Engineers also noted that the area showing the overflow for the 100-year flood on the west side of Hanson Boulevard currently runs down the ditch into the sys tem. There will be no pipe. That area will not be assessed. It is simply an acknow1edgEffient that in the event of a 100-year storm, theoretically the water would overflow into the systEffi. Also, the cost of opening up the drainage area west to the creek along 131st is included in the proposed cost. Mr. Mardaus - asked if 133rld:was going to be run through the wet area. The Englneers stated it would go south of the pond. Mr. Mardaus - asked why they always have to be pushed into having to pay for storm sewer being put in. Developers fill in natural wet areas and build houses, and the residents then end up pumping their basements, plus being assessed for storm drainage that the engineers should have looked at to begin with. The Engi neers responded that natural depressions will be preserved. But as development occurs, some of the smaller wetland areas and depressions diD disappear and that means storm sewers must be engineered. As the land converts from rural to urban use, there is no way the natural drainage system will accommodate it. Special City Council Meeting July 29, 1986 - Minutes Page 9 (Public Hearing/Jay Street Storm Drainage/IP86-21, Continued) Mr. Mardaus - stated the engineers should start working with nature instead of a9alnst It. He realized he wasn't being assessed at this time, but disagreed with 'Jbenefitting" by such a project. He's already getting assessed with assessments that are exceeding the mortgage on his land. If it is $1,181 per acre now, what is it going to be by time he is assessed. Councilman Lachinski stated the Council is trying to protect the residents so that today's costs will be projected to whatever time in the future he develops, though that agreement hasn't yet been reached with Coon Rapids. The Engineers also explained that if there is going to be development in any kind of intensity, there is no way to avoid the storm systems, etc. Mr. Mardaus - asked why every city has to develop to this extreme intensity. The Englneers noted the population is growing, people are looking for new places to live, the market place, etc. Mr. Peterson - asked how fixed the line is for their 240 acres. They are just gOlng lnto the design of that area and can see the line moving around. If possible, they may want to include more into this system. The Engineers thought as lot grades are determined, it is feasible the lines will move 100 to 200 feet, which doesn't make much difference. They suggested ,the sooner they can look at the engineering aspects of that plat, the better so they can look at the impact and whether it can physically be done. Mr. Boeke - stated if that ten acres gets developed, what benefit is it to him to have hlS runoff to the south, and what is the time limit that he would have to let them know whether or not he wants his entire lot included in the drainage area. Mayor Windschitl stated including his property into this drainage area would eliminate the problems of handling the storm water within his plat. He felt Mr. Boeke has to decide just what he wants to do with his property. If he just leaves it, most of the property is not assessed. If development is eminent, there may be some advantage of putting it into the project. He felt Good Value Homes and his plans should go about the same time so the engineers know the ultimate design of the area. Council discussed the issue of paying 8 percent interest to Coon Rapids on deferred assessments. Council felt that was not appropriate, especially on funds that are not eJ':pended. The Engineers stated they would not expend money any earlier than necessary. The assessments for a portion of their city and the area in Andover west of Jay Street will cover the bonding for expenses to date. It was also their prediction that though there are no immediate plans to go east of Hanson now, there wi 11 be a need there soon, possib 1y even within a year or two. And they also expected the next time they would consider any assessments within Andover is when they extend 133rd to the east. Mr. Olson - asked if the lot on 131st and Hanson were to develop, would they have to extend the system to Hanson Boulevards. The Engineers stated that is a fair assumption. But that is another public hearing process with the property owners whenever that is done. Gary Wefiner - stated if 133rd is put through there, the storm drainage would be put ln at t e same time. And they would be assessed for that. The Engineers agreed. And that could happen at any time. But at the present time there are no plans before the Coon Rapids Council that would necessitate it. MOTION by Orttel, Seconded by Lachinski, to close the public input portion of the pub11C hearing. Motion carried unanimously. Special City Council Meeting July 29, 1986 - Minutes Page 10 (Public Hearing/Jay Street Storm Drainage/IP86-21, Continued) MOTION by Orttel, Seconded by Lachinski, to direct staff to prepare a Resolution ordering improvement. project in the southeastern portion of Andover, specifically in the proposed 133rd Avenue west of Jay Street area as presented by the City of Coon Rapids for a cost in the area of $93,000 or $1,181 per weighted acre; and that Coon Rapids handle the engineering on the project; and that the City of Andover would enter into a joint powers agreement for the project. (See Resolution R113-86) Motion carried unanimously. MOTION by Knight, Seconded by Orttel, to terminate the rest of the public hearing. Motlon carried unanimously. Hearing closed at 9:47 p.m. Council recessed at this time; reconvened at 10:06 p.m. PARK BOARD INTERVIEW Council was scheduled to interview Jeff Kieffer and Joan Harms, applicants for the Park and Recreation Commission. Ms. Harms called this evening saying she was unable to meet with the Council tonight but requested the interview be rescheduled. Council agreed to meet with her at the August 5 meeting. Council then interviewed Jeff Kieffer regarding his feelings on the parks in the city, his involvement with organized sports, reasons for wanting to be on the Park Board, etc. MOTION by Elling, Seconded by Knight, that we appoint Jeff Kieffer to fill the three-year term expiring December 31, 1988. Motion carried unanimously. GO BONDS/REFUNDING Attorney Hawkins reviewed his July 28,.1986, letter recommending the refunding of GO Improvement Bonds of 1980, feeling in view of the market that the City should be able to refund those bonds at a lower interest rate, anticipating the rate to be in the upper seven percent. It would result in about a point savings on nearly $2,485,000. MOTION by Orttel, Seconded by Elling, introducing a Resòlution providing for the lssuance and sale of $2,485,000 in General Obligation Refunding Improvement Bonds, Series 1986C as presented. (See Resolution R114-86) Motion carried unanimously. SUPPLEMENTAL ASSESSMENTS/85-5 and 86-8 Mayor Windschit1 was concerned over incurring the costs of respreading the rolls when the project is almost all sold out. Mr. Schrantz explained a new roll must be done, to make it official and certify it to the county and to spread the costs. The developer was told when the final costs were in, the City would redo the assessments for 85-5. Then they did the Second and Third Additions in the first phase. Those costs were combined and respread on a unit basis. MOTION by Ortte1, Seconded by Lachinski, introducing a Resolution declaring cost for re-assessment of Project 85-5 and declaring costs for Project 86-8, directing preparation of assessment roll and setting date for assessment public hearing for improvement of watermain, sanitary sewer, storm drainage and bituminous street construction for Project No. 85-5 and Project No. 86-8, setting the public hearing for August 19, as prepared. (See Resolution Rl15-86) Motion carried unanimously. Council asked that they be provided with the prior figures per unit for ¡P85-5. Special City Council Meeting July 29, 1986 - Minutes Page 11 HIRE ENGINEERING SECRETARY/ENGINEERING TECHNICIAN Mr. Schrantz recommended Cheryl Weiss be hired for the Enginering Secretary position. There was concern on the part of the Council as to when she could start, as she indicated she couldn't start until two weeks after she closes on the sale of her house. She did not know when that would be but thought the closing would be within a couple weeks. Mr. Schrantz stated if she coul d not start within a reasonable period of time, he would either review the applicants already received or readvertise the position. MOTION by Knight, Seconded by Lachinski, that we allow Jim (Schrantz) to hire an Englneering Secretary, Cheryl Weiss, at the rate of $6.50 per hour. /10tion carried unanimously. Mr. Schrantz recommended Todd Haas be hired as an Engineering Technician. MOTION by Elling, Seconded by Orttel, that we hire Todd Haas as Engineering Technician for a salary not to exceed $21,000 a year. Motion carried unanimously. CONROY LOT/139TH AVENUE & CROSSTOWN BOULEVARD Mayor Windschitl explained the County is asking to split the assessments against the Conroy property to include the house and an 80-foot strip to the west of the house. This is the two high spots on the property. Apparently the Conroys redeemed that portion of the tax forfeit property and are now asking how the City wants the assessments·sp1it. ~1r. Schrantz stated the County is allowing them to split off that 80-foot piece, thinking it was already done. He was going to check to see if it was too late for the City to redeem that entire parcel rather than just the right of way for the realignment of Crooked Lake/Crosstown Boulevards from 139th southward.. Counci 1 discussion was just adding an 80-foot strip to be added to the residential piece is an illegal subdivision and requires a lot split. They also suggested a calculation be made as to what is left if that high ground were allowed to be jointed together. Council directed staff to contact the County telling them it is an illegal lot split and also to encourage Mrs. Conroy to contact the City Hall regarding the procedure for a lot split. PUBLIC WORKS TRACTOR MOTION by Orttel, Seconded by Knight, that we authorize Public Works to purchase a Massey Ferguson 135 tractor with Aux Hydraulics for $4,000 from Scharber & Sons. Motion carried unanimously. TAX INCREMENT FINANCING PROPOSAL Dennis Neimann appeared before the Council with questions regarding the tax increment financing district. He is interested in constructing a $1.8 million spec building, put up in three phases and to be leased out, on the site of Mom's Auto and asked about appraisal of the property, estimate of developmentlcosts, how much the City would be willing to do, and the estimated date the property would be ready for construction. He felt soil borings and perk tests would be the first place to start. He also stated it costs about $4,000 to $5,000 to have a preliminary plat done, but he does not want to spend thatmoney until he can get preliminary approval from the City. He would like the City to buy the property and get it in such condition that he would be able to construct the building on it. Special City Council Meeting July 29, 1986 - Minutes Page 12 (Tax Increment Financing Proposal, Continued) Mr. Schrantz noted the City has not yet finished the paperwork for the CDBG funds. Council asked that that be done as soon as possible. Council discussion noted that Mr. Neimann should present a sketch plan of the proposal first. Also, it was felt the City must establish some rules and guidelines regarding tax increment financing. Mr. Schrantz was asked to obtain the guidelines used by some of the surrounding cities. It was also felt the newly hired engineer should be able to work on the tax increment financing district. It was felt the soil borings should be done, acknowledging the appraisal has already been authorized. Council indicated a willingness to work with Mr. Neimann and that the Mom's Auto site is a good place to begin the redevelopment in that vicinity. But it was estimated Mr. Neimann would not be able to build until next spring. ANDOVER VOLUNTEER FIRE DEPARTRENT/FIRE FIGHTER'S DANCE MOTION by Lachinski, Seconded by Orttel, that we authorize the Fire Department to sell pull tabs at the Andover Fun Days. Motion carried on a 4-Yes, I-Present (Windschit1) vote. JETA EMPLOYEES MOTION by Ortte1, Seconded by Lachinski, that we authorize an expenditure of up to $2,410.40 for the rehiring of our x-JETA personnel to facilitate the completion of the seal coating crack sealing. Motion carried unanimously. TIF DISTRICT #2/MEETING WITH BOISCLIARE MOTION by Ortte1, Seconded by Knight, that we schedule a public hearing on Tax Increment Financing District No. 2 for the Bunker Lake Boulevard and Round Lake Boulevard area, that the first choice for the public hearing would be on August 11 at 7:30 at the City Hall; and if it is unable to be published and meet those requirements, that it be scheduled for the 21st. (See Resolution R116-86) Motion carried unanimously. MOTION by Elling, Seconded by Knight, to adjourn. Motion carried unanimously. Meeting adjourned at 11:47 p.m. Respectfully submitted, , '~ ~ _____d ...~ \ ü-J~J::~-~Y;:~ ,\.. 'Í( M~cella A. Peach Recoitling Secretary