Loading...
HomeMy WebLinkAbout[04a] Minutes, May 20 May 20, 2019 Page 1 of 5 Pursuant to due call and notice thereof, the City Council for the City of St. Joseph met in regular session on Monday, May 20, 2019 at 6:00 PM at the St. Joseph Government Center, opening with the pledge of allegiance. Members Present: Mayor Rick Schultz. Councilors Anne Buckvold, Brian Theisen, Bob Loso, Troy Goracke. Administrator Judy Weyrens. City Representatives Present: City Attorney Tom Jovanovich, City Engineer Randy Sabart, Police Chief Dwight Pfannenstein, Public Works Director Terry Thene, Community Development Director Therese Haffner, Finance Director Lori Bartlett Others Present: Dale Wick, Paul Orvis, Jean Karnik, Jean Karnik, Jamie Pullman, Michelle Pullman, Steve Soyka, Keith Simon, Daryl Schaefer, Juliana Howard, Dianne DeVarges, Molly Weyrens, Eunice Antony Public Comments: Sr. Eunice Antony, 104 Chapel Ln: Sr. Antony approached the Council regarding the affordable housing project proposal. Antony had attended the previous meeting and believes having affordable housing in the City is the right thing to do. Dale Wick, 1211 Dale St E: Wick approached the Council regarding the affordable housing project proposal. Wick stated that prior recommendations from the EDA were to have the access to the th apartments come from the construction of 20 Avenue as opposed to Dale St E. Wick added his comments are not for or against the project, rather for the Council to consider their previous approvals and recommendations given from the EDA. In the approved agreements from 2002, when Liberty Point was developed, it was noted that access from the multifamily structure should be from the construction of th 20 Avenue. The extension of Dale Street E would violate Ordinance 502.09, Subd.15 which stated the Zoning Administrator shall only allow adjustments if consistent with guidelines established. In no case shall an adjustment be allowed if it will change substantially the point of ingress or egress to the site. Wick believes extending Dale St E would substantially change the point of ingress or egress. Wick added that there have been many developers that have forgone developing on the site because th they were held to the standard of building 20 Avenue. th Paul Orvis, 913 13 Ave NE: Orvis approached the Council opposing the affordable housing project. Orvis is a member of law enforcement for eighteen years and believes the Council needs to take into account the types of people this type of housing attracts. Orvis does believe there is a need for affordable housing, but the City needs to consider establishing a free crime multi-housing program. Daryl Schaefer, 31826 Polar Circle: Schaefer approached the Council regarding the affordable housing project. Schaefer stated the City needs to revisit the rental process before approving a large affordable housing complex. Schaefer added that people moved into St. Joseph for a reason and that the views expressed in the previous Council meeting came from people not living in the City and from those that did not elect the Councilmembers. Jeff Karnik, 31086 County Road 2: Karnik approached the Council regarding the annexation of his property. Karnik questioned when his property would be able to hook-up to City services. As no one else present wished to speak, Schultz closed the public comments portion of the meeting. Approve Agenda: Buckvold requested the Council amend the agenda to allow additional comments during the affordable housing discussion. Schultz made a motion to approve the agenda as presented. The motion was seconded by Goracke. Ayes: Goracke, Schultz, Theisen, Loso Nays: Buckvold Motion Carried 4:1 May 20, 2019 Page 2 of 5 Consent Agenda: Loso made a motion to approve the consent agenda; seconded by Schultz and passed unanimously. a. Minutes – Approved the minutes of May 6, 2019. b. Bills Payable – Approved check numbers 054639-054682, Payroll EFT # 111676-111682 and Accounts Payables EFT #001878-001880. c. Treasurer’s Report – Accepted the April 2019 Treasurer’s Report as presented. d. Donations – Accepted the donations and contributions as presented. Public Hearing, Woodcrest of Country Manor – Issuance of Revenue Bonds: The City received a request to allow for issuance of conduit debt for the Country Manor project. Conduit debt is limited-obligation revenue bonds or similar debt instruments issued for the purpose of providing capital financing for a specific third party. Although the bonds bear the City’s name, the City has no obligation for the debt. Staff has worked with the City bond counsel and bond advisor and they both indicated there is no reason not to participate. There is a $50,000 fee and $3,000 application fee that will be charged to the applicant. The process for issuing such debt does required a public hearing and the notice was published in the St. Cloud Times. Schultz opened the public hearing at 6:14 PM on the Issuance of Revenue Bonds. Brian Kelm, CEO – Country Manor: Kelm stated that Country Manor currently leases Woodcrest of Country Manor and they are in the process of purchasing it. When Woodcrest was developed, the most feasible way at the time for them to move into St. Joseph was to partner with a developer. The developer purchased the property and had a lease agreement with Country Manor. At this time, Country Manor is requesting the City issue revenue bonds in order to complete the purchase of the property. Craig Theis, Doherty & Co.: Theis stated his company is the bond underwriter and it’s their job to work with the City and the City’s bond counsel. Theis added the City has no liability on the bonds and no payments need to be paid by the City. As no one else present wished to speak, Schultz closed the public hearing at 6:17 PM. Weyrens stated that because the City will also be issuing bonds this year, the total bonds in the City’s name will exceed $10M; therefore, the City bonds will be non-bank qualified. The difference in interest rate because of this is estimated to be $15,000, all of which will be paid by Country Manor. Loso made a motion authorizing the Mayor and Administrator to execute Resolution 2019-037 Providing for the Approval of a Housing Program and the Issuance and Sale of Senior Housing and Healthcare Revenue Bonds (Woodcrest of Country Manor Project), Series 2019 Relating to A Senior Housing and Health Care Project; and Resolution 2019-038 Providing for the Consent to an Assignment of a Tax Abatement Agreement. The motion was seconded by Buckvold and passed unanimously. Stearns County Assessor – Jeff Johnson and Adam Spah: Annually, the Stearns County Assessor’s Office provides the City with a property assessment update. Assessors Jeff Johnson and Adam Spah presented the following:  The market in Stearns County has been strong the past few years and that trend has continued into 2019.  The estimated market value (EMV) in Stearns County, excluding the City of St. Cloud, increased by 4.55%.  Assessment values for the City of St. Joseph in the residential, agricultural, and apartment areas have increased since 2018.  St. Joseph saw an increase in the number of residential homes constructed in 2018, specifically along th Elena Lane and 7 Avenue Southeast.  Farmland prices in the County remained the same despite low commodity prices and reduced income. Buyers continue to focus on high-quality land as well as location while demand for lower grade land was slow to stable.  EMV increases for St. Joseph from 2018 to 2019 increased significantly due to the annexation. May 20, 2019 Page 3 of 5 Buckvold questioned the decrease in valuation for apartment buildings countywide. Johnson stated part of the decrease is due to the variety markets and city sizes throughout the County. Buckvold further questioned if there is a need for apartment living within the region. Johnson stated there is a demand for apartment living in the region based off of occupancy levels and rent amounts. Regarding commercial properties, projects in the retail industry have dropped off and have not recovered since the recession. Other commercial sectors such as medical, office and service type industries are where the increases are occurring. Buckvold questioned whether townhome purchases are from people that are new to the area, or whether they are being purchased by people from within the area looking for a different type of home. Johnson stated it is a hard question as there is no real answer to it. Largely the number of people purchasing townhomes is baby boomers. Affordable Housing Project: Weyrens stated that at the May 6, 2019 meeting, the Council approved to move th forward with the affordable housing project with the understanding that 20 Avenue needs to be constructed as a rural road, without utilities; TIF for the duration is to be limited to the time needed for the project only; and the utilities servicing the site be in Dale Street E. Since that meeting, the options for constructing the roads and financing have been reviewed and the TIF analysis has been updated to include the City maintaining 20% of the tax revenue which would include all taxing jurisdictions. There are four options that have been reviewed: th Option 1 – Sand Properties only constructs a portion of Dale Street with a turn around until 20 Avenue is ready to be constructed. The road is placed in its entirety on Outlot C and water and sewer are provided in the ROW for Dale Street. The costs are assessed over a fifteen year period and the interest rate is reduced to .5% th over the bond rate. No TIF is issued and when 20 Avenue is constructed the property is assessed through the normal process. Estimated Cost Impact: City Cost Sand Properties Road Estimate $530,000 $265,000 $265,000 Water Sewer $210,000 $0.00 $210,000 $265,000 $475,000 th Option 2 – Sand Properties only constructs a portion of Dale Street with a turn around until 20 Avenue is ready to be constructed. The road is placed in its entirety on Outlot C and water and sewer are provided in the ROW for Dale Street. The City pays for the entire construction of Dale Street and Sand pays for utilities. The th City would incur the additional cost of $265,000 from Option 1, TIF is not used and when 20 Avenue is constructed the property is assessed through the normal process. Estimated Cost Impact: City Cost Sand Properties Road Estimate $530,000 $530,000 $0.00 Water Sewer $210,000 $0.00 $210,000 $530,000 $210,000 th Option 3 – Sand Properties would only construct a portion of Dale Street and construct 20 Avenue as a rural road. The road is placed in its entirety on Outlot C and water and sewer are provided in the ROW for Dale Street. The additional road costs may not make the project viable and Sand Companies would be requesting additional support such as reducing the percentage of participation in the road cost or a long term low interest financing option. Estimated Cost Impact: City Cost Sand Properties Road Estimate (Dale) $530,000 $265,000 $265,000 th Road Estimate (20 Ave) $450,000 $225,000 $225,000 Water Sewer $210,000 $0.00 $210,000 $490,000 $700,000 May 20, 2019 Page 4 of 5 Option 4 – Using the alternative in Option 1, the City building Dale Street and Sand Companies building the utilities only at this time. The City would issue TIF Bond and use the tax revenue to pay the TIF Bond. Using this scenario, Stearns County and the School District participates in the costs for the roads and the City still retains 20% of the tax revenue for general fund purposes. Megan Sand Carr, Sand Companies: Carr stated Sand Companies had not chosen a name for the apartments or for the tax entity as an LLC would need to be established to move forward. The proposal is to name the apartments, Vista Apartments and the LLC is named St. Joseph Vista, LLC. Buckvold questioned the reference during public comments about an additional 300 vehicle daily trips in the local neighborhood and the context of that comment. City Engineer Randy Sabart responded that those numbers are based on a 48 unit apartment building. It is an average number tips each unit would add to the transportation network. The number could be more or less based on who is occupying the building. Loso stated his position is based solely on the financial impact the project has on the City. Loso added Option 1 th is the best option as it has the least financial burden on the City. Loso stated the construction of 20 Avenue should only take place based on development along that road. Schultz reviewed St. Joseph Vista’s request and is concerned with the costs the City would have to bear to make this project feasible. Buckvold expressed concern about comments made during open to the public about the housing project creating a safety risk for the community. She stated she would not be in favor of a project that would put her children or anyone else in the community in danger. Buckvold added that the City’s Police Department spends more of its resources with the college students then with an affordable housing project area. Chief Dwight Pfannenstein stated it wouldn’t be fair to say who uses their department most. As calls come in, no matter where they come from, they are ranked and the highest priority calls are responded to first. Pfannenstein added that increasing the number of residents in any form will increase their workload. Loso questioned why the project was turned down in other cities. Carr stated in Cold Spring, it was a traffic issue. The property was a tax forfeiture and it was guided for a townhome community. The County was not comfortable with selling the property at a reduced price. There was only one ingress/egress into the entire development. Additionally, a Council meeting was held and a large number of residents opposing the development attended the meeting. Carr stated they had discussions with Sartell years ago and at that time there were no properties zoned for multi-family use available. Goracke stated he doesn’t believe anyone present is against affordable housing; rather the discussion is on thth whether to construct Dale Street or 20 Avenue. Discussion was held on constructing 20 Avenue as a rural road and potentially having utilities run along Dale Street without extending the actual street. Utilities can be installed without the construction of Dale Street. Schultz made a motion to move forward with the affordable housing project request submitted by St. Joseph Vista, LLC with the following understanding: th 1. 20 Avenue needs to be constructed as a rural road, without utilities 2. Dale Street will not be constructed, but utilities will be installed in the dedicated right of way and temporary roadway easements. 3. Costs are assessed over a fifteen year period and the interest rate is reduced to .5% over the bond rate. The motion was seconded by Goracke. Ayes: Goracke, Schultz, Buckvold Nays: Theisen, Loso Motion Carried: 3:2 Buckvold stated the project is more than just about the type of people moving into the apartments. Buckvold added that the project is good for the economy. Engineer Reports: No reports. May 20, 2019 Page 5 of 5 Administrator Reports, 2020 State Bonding Requests: Schultz made a motion to table action on the th 2020 State Bonding requests until after the workshop session on Tuesday, May 28. The motion was seconded by Goracke and passed unanimously by those present. Mayor Reports: No reports Closed Meeting: Schultz made a motion to move into a closed session at 7:54 PM pursuant to MN Statute 13.05D 1&3 to discuss the potential sale of City property located at the corner of CR 133 and CR 75. The motion was seconded by Goracke and passed unanimously. The Council came out of closed session at 8:27 PM at which time, Mayor Schultz reconvened the meeting. Schultz made a motion to move forward with the purchase of sale of the property located at the corner of CR 133 and CR 75 contingent upon access with Stearns County. The motion was seconded by Theisen. Ayes: Theisen, Schultz, Loso Nays: Buckvold, Goracke Motion Carried: 3:2 Adjourn: Loso made a motion to adjourn at 8:28 PM; seconded by Schultz and passed unanimously. Judy Weyrens Administrator THIS PAGE INTENTIONALLY LEFT BLANK