Also present in the audience were Al and Tom Beste as well as reporters from the press.

Minutes of the 8/21/02 special meeting were introduced for review and approval and after noting a single typographical error, moved for adoption by Heidgerken, s/Thelen, and all voted aye. The minutes of an 8/28/02 regular meeting were also presented and after a brief review, Thelen moved for their adoption, s/Boelter. Once again, all voted in the affirmative in passing this action.

Public Hearings

At 7:40 P.M., the first of three scheduled hearings were initiated by the mayor. The first hearing dealt with the advertised modification to TIF District No. 1-2 and the TIF Financing Plan relating thereto. Ryan quickly pointed out that after some deliberation, this district should now be identified as TIF District No. 1-3, since this district was created solely for the benefit of Freeport Roller Mills and its public purpose might be different than that of the remaining unsold lots within District No. 1-2. Rather than hamper future development in that area, she pointed out that by separating the two areas, non-retail activity can occur with TIF options for the majority of plat 1 of the Industrial Park.

With no questions forthcoming, the major closed the hearing at 7:55 P.M. and then asked for action on this agenda item. With that, Humbert moved for adoption of Resolution No. 2002-27, a "RESOLUTION APPROVING THE CREATION OF TIF DISTRICT NO.1-3 AND ADOPTION OF THE TAX INCREMENT PLAN RELATING THERETO". Boelter seconded the motion and with all ayes and no nays, the motion passed.

A hearing then convened on whether to amend the city's current business subsidy criteria and again Ryan was called upon to give the background, along with comments from the clerk. She indicated that the city's current policy, established in 1999, via a Resolution 1999-9-29-1, lacked any reference to a wage floor for recipients of subsidies from the city. The clerk revealed that the EDA Board last week had recommended that a minimum $7.00 per imposed and Ryan stated that in a handout, item #11 plus any one of the remaining ten written criteria must be met by any developer seeking financial assistance from the city. With no further comments, the hearing was closed at 8:05 P.M.

At this time, Thelen moved for passage of Resolution No. 2002-28, a "RESOLUTION APPROVING THE AMENDMENT OF THE CITY OF FREEPORT BUSINESS SUBSIDY CRITERIA", contained as part of a new policy for the city. Boelter seconded the motion and by a voice vote, the motion was approved, 5-0.

The final hearing then addressed the issue of granting city subsidies to Freeport Roller Mills, as outlined in Resolution No. 2002-24, adopted on 8/21/02. The clerk produced a copy of that document, as well as the public hearing notice that was duly published in the official newspaper and a copy of a letter from Ryan of Drown Associates of 8/30/02, pointing out the stipulations that the applicant must adhere to as part of a development agreement to be entered into with the city. The clerk stated that such a hearing must be held in accordance with M.S. #116J, because the developer is receiving over $100,000 during the life of the agreement. It was also pointed out by Ryan that Freeport Roller Mills (dba: M&B Enterprise of Freeport, Inc.) that the applicant would provide 15 jobs paying at least $7.00 per hour, excluding benefits, and the estimated pay-as-you-go TIF reimbursements were expected to generate at least $132,000, based upon the current value of the pending improvements to Lot 1, Block 1, Plat II, of the Industrial Park or TIF District #1-3, currently projected to be $605,000. Monitoring of the wage/benefit goals would have to be done by the city on an annual basis, up to three years or until the goals have been attained, stated Ryan.

With no further questions from the council or audience, the mayor closed the hearing at 8:20 P.M. and no action was needed on this issue now, since it would be considered later on at this meeting as part of a TIF Development Agreement.

Old Business

The clerk provided a list of items the city agreed to pursue on behalf of Freeport Roller Mills after he, the mayor, Loren Meyer, William Meyer, Al and Tom Beste met on 9/19/02 at the city hall. It was at this session that the city was informed of the name change to M&B Enterprise and this group informed the city that it was seeking a bank appraisal on 10/18/02 but needed certain zoning changes, assurances from Xcel Energy that 3 phase service would be installed and that they be involved in a 10/03/02 land purchase sale, since the city was scheduled to do the same for Freeport Properties that same day already. A review of this list revealed that most of these issues were already resolved or would be finalized with a 10/08/02 rezoning hearing.

Although the city had received earlier today single copies of the TIF Development Agreements for Freeport Properties and M&B Enterprise from Attorney Scott Hamak, the clerk instructed the council that he did not have time to reproduce the massive documents for distribution. With some reservation because the council did not have adequate time to study these agreements, Atkinson move to approve these contracts, contingent upon the Bestes' purchase of a designated 15 acre tract and the approval to acquire an additional 15 acres subject to a first right of refusal being acknowledged, with a second offered by Thelen. By a vote of 5 ayes and no nays, the motion carried.

The mayor and clerk recapped the activity of the EDA Board, who had met on 9/18/02 for a regular meeting. In addition to the Industrial Park development issues already discussed this evening, the other action taken included the setting of a public hearing on 10/02/02 at noon to consider the sale of land by the EDA, as required by law, for the two potential developers under consideration and the fact that they have proceeded to take back certain lots in Welle's Addition that have not yet been built upon, a violation of the covenants in the purchase agreements.

Two Resolutions dealing with the recent sale of a $375,000 G.O. Improvement Bond were introduced, after the initial passage with the Freeport State Bank had delayed the movement of funds from that institution to the city's accounts, because of language not acceptable to the bank's bond counsel. As a result, Resolution No. 2002-29, a "RESOLUTION RESCINDING AUGUST 21, 2002, SALE OF GO IMPROVEMENT BOND, SERIES 2002A" was introduced by Thelen, s/Boelter, and adopted without dissent. Resolution No. 2002-30, a "RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF A $375,000 GO IMPROVEMENT BOND, SERIES 2002A, AND LEVYING A TAX FOR THE PAYMENT THEREOF" was submitted by the clerk. After noting that this sale would allow for principal payments to begin in 2005 and a call provision beginning in the year 2014 was in place, Humbert moved for its passage, with a second offered by Boelter. On a voice vote, the motion was approved, 5-0.

With Romness present, the council was advised of the recent comments made by Neil Middendorf and his dislike of platting additional land west of the current farm buildings and the pending 100 foot wide drainage easement contained on the existing Lot 2, Block 2 of plat I. Romness was unsure where the city could store water if this easement was eliminated but felt that some impoundment along side the road right-of-way would have to be worked out. In order to appease the Midendorfs', a motion was made by Thelen, s/Humbert, to direct the surveying firm of SEH to remove the current 100 foot easement on Lot 2 before the plat is presented for recording. With all 5 voting aye, the motion passed.

Discussion about Plat II, containing a single lot for the Bestes', was also reviewed after the construction firm representing them had suggested a new location after they had met with Neil Middendorf as well. This new layout moved the entire lot north and required the expansion of its width. There was doubt that the tract introduced by John Beste the previous day from J&D Construction was accurate since a similar layout given by Romness made it appear that the J&D version was simply too large. Romness stated that he would have to check the calculations in his office the following morning to insure that no more than 15 acres was depicted before passing this information on to SEH for prep of Plat II. The introduction of a MNDOT memo dated 9/11/02, offered comments on the I94 requirements in conjunction with the preliminary platting of the entire 101 acre tract.

It reminded the city no runoff would be permitted unto the right-of-way and work to be performed within this area would require a permit from the St. Cloud office of MNDOT.

The issue of proper zoning of both plats was also spelled out in letter dated 9/18/02 from the clerk to the city attorney. It went on to state that the two pending business are both intending to conduct some minor retail sales but this information should be considered when preparing the desired zoning district amendment ordinance to be acted upon at the October 8th meeting.

Pete Carlson of SHE appeared to talk about the pond dike investigation and he presented a written report on the steps to follow after geotechnical field observations were made. He mentioned that he would report back in several weeks after certain lab results are known on the soils samples taken at the site.

New Business

Sue Raden of the Chamber of Commerce appeared to request that the city purchase some 28 U.S. flags for downtown display, at a total cost of $1,246.00 plus shipping and handling. She suggested that these flags be displayed in conjunction with selected holidays, as pointed out in a prepared written summary. The council took no action on this matter.

Joel Dasher presented the summary of riding lawn mower quotes that had been advertised with some five firms responding to the city's mailing. Since the prices were varied due to some allowing for trade-in credit and no attachment prices were offered by all vendors, the council suggested that they study the product materials for a look into what options might be selected.

Dasher also commented on his written report that contained reference to the downtown painting of the crosswalks and parking stalls. He also indicated that some sort of sewer jetting plan should be put in place since no written policy exists and a recent MNDH memo revealed that no problem exists in the city's drinking water supply. Other projects that he currently is addressing were the softball field entry culvert, water shutoff repairs at the Tim Hennen and Loren Goebel residences and the fact that street repairs will be made tomorrow by Caldwell Asphalt.

The clerk was instructed to set up a Cable TV franchise renewal session with legal counsel Robert Vose of Kennedy & Graven, after he had sent a letter out on 9/09/02 outlining the process to be followed.

Pending claims amounting to $15,645.61 were presented for review and with some clarifying answers explained by the clerk, a motion to pay the register list was made by Thelen, s/Boelter. All voted in the affirmative.

Following a written request for a wage adjustment, a motion was made by Thelen, s/Humbert, to grant an hourly rate increase to $20.00 for the acting city clerk, retroactively to September 1, 2002. The motion passed on a 5-0 vote.

After discussing the potential number of voters to appear at the city hall for the general election and because the city lacked an adequate number of voting booths to serve all voters in a timely fashion, Thelen moved to have the clerk purchase 4 new free-standing light weight booths at a cost of $210 each and dispense using the two wooden frame booths now on hand. Boelter seconded the motion and all voted for this action.

Correspondence

These items were reviewed after being sent out earlier with the agenda:

  • tax levy resolution sent to the county auditor
  • primary election judge work hours and voter participation locally
  • 5 year Stearns County Highway Plan hearing notice for 10/07/02

With no further business to come before the group, the meeting was adjourned by unanimous consent at 11:50 P.M.