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HomeMy WebLinkAbout1998 [09] Sep 22 Page 339~ September 22,1998 I i Pursuant to due call and notice thereof, the City Council for the City of St. Joseph met in special i session on Tuesday, September 22, 1998 at 7:00 p.m. in the St. Joseph City Hall. I I I Members Present: Acting Mayor Ken Twit. Councilors Cory Ehlert, Bob Loso, Mary Niedenfuer. Deputy Clerk Judy Weyrens. I Others Present: Chad Ca~son, Mike Muhlrooney, Kevin Borgert, Jim Mullenbeck Approve Aaenda: Loso made a motion to approve the agenda wifh the following addition: Extension of the Municipal District Boulldary; seconded by Niedenfuer. Ayes: Twit, Ehlert, Loso, Niedenfuer Nays: None. Public Comments to the Aaellda: No one present wished to speak. Extension ofthe Municipal Boundarv: EDA Director Chad Ca~son presented a resolution ofthe Planning Commission recommending the extension of the Municipal District Boundary. He stated that State Statute requires the Planning Commission to review all proposed expansion areas in i relation to the Comprehensive Plan of the City. The extension ofthe District is needed due to 'I' the recent annexation and expansion plans of Borgert Products. The Planning Commission approved the following resolutiorl: i RESOLUTION OF THE PLANNING COMMISSION FINDING THE CITY OF ST. JOSEPH DEVELOPMENT DISTRICT NO.1 PLAN CONFORMS TO THE CITY PLANS FOR DEVELOPMENT OF THE LOCALITY AS A WHOLE WHEREAS, Development District NO.1 Plan modification dated September ii, 1998 has i been submitted to the St. Joseph Planning Commission pursuant to Minnesota Statutes, Section ' 469.126 subd. 1; and I WHEREAS, the St. Joseph Planning Commission has reviewed said Plan to determine conformity of said Plan to the general plan for the development or redevelopment of the I municipality. NOW, THEREFORE BE IT RESOLVED, by the St. Joseph Planning Commission, that Development District NO.1 Plan conforms to the general plan for the development -of the municipality as a whole, and the Commission recommends approval of the Plan to the City Council. Loso made a motioh to accept the resolution of the Planning Commission and extend the Municipal District Boundary to include all the property owned by Borgert Products. The motion was seconded by Niedenfuer. ! Ayes: Twit, Ehlert, Loso, Niedenfuer I Nays: None. Public Hearina Tax Increment Financina Plan: Iwit opened the hearing at 7:15 p.m. and stated that the purpose of the hearing is to consider the modification of Development District No.1, and the formation of Tax Increment Financing District No. 1- 3, and the adoption of a development program and tax increment financing plan pursuant to Minnesota Statutes, Chapter 469. Such persons as desire to be heard with reference to the above proposals will be heard. I i Ca~son stated that part of the plan modification requires a 30 day notice to the School District and County. Ca~on stated that due to the time constraints of the proposed project he had to request the County and School District waive the 30 day notification. Both the School District and County have submitted written waiver of the 30 day notification requirement. I I , Page 3400 September 22, 1998 I Mike Muhlrooney, TIF Consultant, discussed the specifics of the financing project. He stated the Ii proposed district is an economic development district. An economic development district may not last longer than 11 years. The proposal before the Council this time, Borgert Products Inc., is a ·pay- as- you-go' tax increment district to reimburse site improvement expenses. The ·pay- i as-you-go' TIF means that Borgerts will incur 100% of the cost of the site improvements. The I City can then use future tax increments as they are received to reimburse Borgerts for eligible-site improvement costs. The present value of the tax increment and qualifying local contribution is approximately $ 195,000. The estimated tax increment and local contribution is capable of repaying up to $ 195,000 plus 8% interest over the life ofthe District. Borgert's are requesting assistance of $ 121,000 plus interest. The final amount will be verified by contractor invoices for eligible site improvements. When forming a new tax increment district, the City must make a local contribution to the project I or lose local government aid over the life of the project. The local contribution must equal 1 0% of i the annual increment. Local contribution means any financial assistance from a municipality to a i TIF district to pay for project costs. It does not include expenditures for general govemment i purposes or expenditures for improvements that the municipality planned to incur absent to the project. Local contributions must be made out of unrestricted money of the municipality, such as the general fund, an economic development fund, a property tax levy or a federal or state grant- in-aid that may be spent for general govemment purposes. Potential sources oftocal contribution for the TIF District can include City Engineering, waiver of City Building and Utility Fees and a cash contribution for the EDA. I Mulhlrooney clarified that based on the requested financial assistance, the local contribution for the Borgert Project would be $3,000 per year with the first contribution payable in the year 2000. He again clarified that the maximum assistance requested is $ 121,000. The life of the increment is uncertain at this time as it wUl be based on the actual invoice costs. Loso questioned the amount of local contribution and ifthat cost will be recaptured by the City. Carlson stated that the Borgert Property is newly annexed property and the City has not received any property taxes for this parcel. After the project is completed the City will be retuming the property taxes to Borgert Products until the TIF is completed. In essence, the City will not be losing any revenue it currently has been receiving and the increment is paid as a reimbursement. By paying the increment as a reimbursement, there is very little risk to the City. The Borgert expansion plan includes a building expansion of $ 850,000 with additional equipment in the amount of 3 million. The new plant will be used for paving stones and two new retaining wall products not currently available. The new products are part of a company located in Germany. The proposed expansion will add 7 new jobs with a pay range of $ 10.00 to $15.00. The Council also discussed the following: ramification if a business would leave before the increment is complete; type of improvements allowed through TIF; impact of increased land values in relation to the project; and aitemative revenue sources. I Ehlert made a motion to approve the following resolution estabtishing the Tax Increment Financing District 1-3. The motion was seconded by Loso. Ayes: Twit, Ehlert, Loso, Niedenfuer Nays: None. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ST. JOSEPH APPROVING TAX INCREMENT FINANCING DISTRICT NO. 1-3 AND THE USE OF TAX INCREMENT FINANCING WHEREAS, the City Council of the City of St. Joseph, Minnesota (the ·Cityj, has previously approved Page 3401 September 22, 1998 Municipal Development District NO.1 (the "Development Districtj and irrloonnection therewith adopted a Development program; and I WHEREAS, it is desirable and in the public interest that the City undertake and carry out a tax increment financing plan for Tax Increment Financing District No. 1-3 pursuant to Cl1apter469 of Minnesota Statutes, encompassing the area which is more particularly described on Exhibit A attached hereto and made apart hereof, (which area is herein called the ·Districtj; and WHEREAS, the City has reviewed "Tax Increment Financing Disllrict No. 1-3, dated September 22, 1998" (the ·Planj, which sets forth a tax increment financing plan forthe District; and WHEREAS, the Plan sets forth the City's estimate of the fiscal and economic impact of the District on the tax capacities of all taxing jurisdictions in which the District is located; and WHEREAS, the Board of Commissioners of Steams County, Minnesota, has been notified ofthe public hearing forthe review of the Plan; and WHEREAS, the School Board of Independent School District No, 742 has been notified of the public hearing forthe reviewofthe Plan; aM WHEREAS, the City has received and considered the comments! of the Board of Commissioners of Steams County and the School Board ofthe Independent School District No, 742 respecting the contents of the Plan; and WHEREAS, the City on September 22, 1998. after having publislhed a notice of public he¡¡ring in the official newspaper of tbe City, conducted a public hearing on the Plan and received public comments on the same. I NOW, THEREFORE, BE IT RESOLVED BY THE City Council of the City of St. Joseph, Minnesota, as follows: Sec. 1. The City finds and determines that there is a need for the activities of the Development District to be financed in part by the tax increments from the District. Sec. 2. The City find~ and determines that the activities to be financed by the tax incremerlts from the District will carry out the objectives of the Development District by encouraging industrial development, providing job opportunities and enhancing the tax base. Sec. 3. The City finds and determines that the provision for job opportunities and the preservation and enhancement of the tax base are in the public interest of the City and the expenditures of the District area a public purpose. Sec. 4. The City finds and determines that the tax increment finandng plan as set forth in the Plan having been duly reviewedßnd considered is hereby approved and adopted, and the area described in Exhibit A hereto is hereby designated as an Economic Development District pursuant to Minnesota Statutes, Section 469.174 Subd. 12 I I I I I i I Page 3402 September 22, 1998 Sec. 5. The City finds and determines that the District ìs an Economic Development District because it will result in increased employment in the City, and preservation and enhancement of the tax base of the City. Sec. 6. The City finds and determines that the proposed development, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of tha projected tax increments for the maximum duration of the district permitted by the Plan. Sec. 7. The City finds and determines that the tax increment financing plan will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development ofthe District by private enterprise. Sec. 8. The City finds and determines that the tax increment financing plan set forth in the Plan conforms to the general plan for the development of the City as a whole. Sec. 9. The reasons and supporting facts for findings 5, 6, 7 and 8 as set forth on pages 4, 5 and 6 of the Plan are by this reference confirmed, approved and adopted. Sec. 10. Pursuant to Minnesota Statutes, Section 273.1399, Subd. (6)(d) the City elects to make a qualifying local contribution equal to 10 percent ofthe District's increment to pay eligible project costs. Sec. 11. The City hereby states its intention to use all1)f the captured tax capacity for purposes of tax increment financing as perthe conditions set forth in the Plan. Sec. 12. The City Clerk shall request the auditor of Steams County to certify the original tax capacity and original local tax rate of the District approved by this resolution. Sec. 13. The City Clerk is hereby directed to file a copy of this resolution with a copy of the Plan with the Minnesota Department of Revenue. Adopted this 22"" day of September1998. Boraert Products Special Use & Variance Reauest: Ehlert presented the Planning Commission findings of the publiC hearing for Borgert Products for a Special Use Permit and Three (3) foot variance. The variance is needed to house the specialized equipment needed for processing of paving stones and retaining walls. , Loso made a motion to approve the fOllowing findings of the Planning Commission; seconded by Ehlert Ayes: Twit, Ehlert, Loso, Niedenfuer Nays: None. Resolution of finding The request of Borgert Products requesting a Special Use and Variance came before the Planning Commission at a public hearing on September 8, 1998. The purpose of the hearing was to consider a Special Use Permit to allow the expansion of Borgert Products. Further the property owner is requesting a three (3) foot variance on the maximum height of a structure. The Special Use Perm,it 'anij Variance are needed to allow the construction of a building to house a new piece of equï¡jlnent to be used in the manufacturing of their product. Page 3403 September 22, 1998 St. Joseph Code of Ordinances 52.21 subd 2 states: All permitted industrial uses shall require a special use permit. I St. Joseph Code of Ordinances 52.21 subd 7 states: No structure hereafter shall exceed 45 feet in height. The proposed building will be48 feet in height, requiring a three (3) foot variance. The property is le~ally described as follows: That part of the Southwest Quarter of the Northeast Quarter (SW 7: of the NE J1) of Secúon Eleven (11), Township One Hundred Twenty-Four (124) North, Range Twenty-Nine (29) West of tfle Fifth Principal Meridian, St. Joseph Township, Steams County, Minnesota, which Des northerly of the northerly right-of-way line of the Burlington Northern RaJ7road and which Des westerly of a line 706.92 feet west of an measured at a right angle to, arxf parallel to the east line of said Southwest Quarter of the Northwest Quarter (SW 7: of the NE J1); subject to easements of record, if any. In consideration of the information presented to the Planning Commission aM its application to the Comprehensive Plan and Ordinances of the City of St. Joseph, the Planning Commission makes the following findings: Special Use Reauest: The proposed use is consistent with the standards for a Special Use Permit as stated in St. Joseph Code of Ordinances 52.8 subd 4 (a-k). The proposed use is consistent with the intent of the zoning classification of the Industrial Zoning District as stated in the St. Joseph Code of Ordinances 52.21 subd 1. I Therefore, based on the above findings, the Planning Commission recommends the Council approve the Special Use Permit as requested. Variance Reauest: St. Joseph Code of Ordinances 52.7 subd. 2(a): That there are exceptional or extra ordinary circumstances orÅ“nditions applying to the property in question as to the intended use of the property that do not apply generally to other properties in the same zoning district The exceptional or extraordinary circumstances must not be the result of actions taken by the petitioner. Finding: The product manufactured is specialized requiring a pi¡¡ce of equipment that cannot fit in a building less than 45 feet in height. St. Josepn Code of Ordinances 52.7 subd 2(e): That the condition or situation of a specific piece of property, or the intended use of said property, for which the variance was sought, is not of so general or recurrent a nature as to make reasonably practicable the formulation of a gener¡¡ regulation for such conditions or a situation. Finding: The product manufactured is specialized. The Fire Chief has had the opportunity to comment and has not submitted any concems and a letter of support was submitted by an adjoining property owner. Citv Hall Roof Repairs: Weyrens presented the Council with a summary of bids as advertised for the repair of the City Hall Building. They are as follows: 1. 2. 3. McDowall Company Buysse Roofing Horizon Roofing $ 23,567.00 25,550.00 26,860.00 I Page 34iJ September22,1998 I 4. Granite City Roofing 28,300.00 After reviewing the bid summaries, the Council discussed the need to have detailed bids to assure that work being performed is the work requested. Therefore, the Council directed Weyrens to contact the apparent low bidder, McDowall Company and request a detailed breakdown of their bid and to p1ace this matter on the October 1, 1998 Council agenda. Miscellaneous or Announcement Items: Carlson stated that while reviewing the details for the Casey's Store it was noted that the property being purchased does not have a separate title or abstract. He stated that he discussed this matter with the City Attomey who recommends having an abstract prepared. Loso made a motion directing Carlson to have separate abstracts prepared for the Casey property and the Fire Hall property. Carlson should also discuss this matter with St. Joseph Township as they are joint owners. The motion was seconded by Twit. Ayes: Twit, Ehlert, Loso, Niedenfuer Nays: None. Adioum: Loso made a motion to adjourn at 8:10 p.m.; seconded by Niedenfuer Ayes: Twit, Ehlert, Loso, Niedenfuer Nays: None. (>!;<!:l;iJ~ I I I I I