Joint Meeting with the Freeport EDA - Freeport EDA Special Meeting

A special meeting of the Freeport Economic Development Authority was convened at 7:30 P.M. on March 29, 2006 by President Matt Worms with Members Jim Hemker, Rodney Atkinson, John Thelen, Andy Welle, Tim Hennen, and Paul Hetland also in attendance.

Also in attendance were the following: Jim Schulz, Carol Moorman, Gary Pierskalla, Scott Hamak, Everett Scherping, Mark Middendorf, Alquin Borgerding, Sue Slupe, Tom Beste, Al Beste, John Gilk, Rick Neeley, Mark, Joe Thompson, Doug Sanders, Helen Conde, Michael Timp, Randy Synstad, Loren and Carrie Goebel, Steve Notch, John Von Wahlde, Ed Atkinson, Jerry Meyer, and Jackie Atkinson.

Staff persons on hand were Paul Hetland and Joel Dasher.

The Pledge of Allegiance was said by those in attendance.

Agenda

Humbert moved and Goebel seconded a motion approving the meeting agenda. Discussion offered. Motion carried 5-0.

Approval of the Agenda

Humbert Goebel moved carried.

New Business

EDA Recommendation: Sale of Property to Famo Feeds

Worms opened the hearing at 7:31 P.M. Jim Hemker, EDA Vice President brought forward the recommendation and proposal approved by the EDA. Scott Hamak gave a summary of the legal process to follow in the sale of the land. Worms moved and Humbert seconded a motion to close the hearing at 7:42 P.M. Atkinson moved and Thelen seconded a motion to approve EDA Resolution 2006-001. Discussion offered. Motion carried 7-0. Goebel moved and Tim Hennen seconded a motion to approve Resolution 2006-007 allowing the sale to Famo Feeds of approximately 6.8 acres of land in the Freeport Industrial Park for an amount of $20,000 per acre and releasing the right-of-first-refusal on old Outlot C. Discussion included the note that the $5000 application fee was paid and no business subsidies were requested not provided. Motion carried 5-0.

EDA Recommendation: Sale of Property and JOBZ benefits to/for Whirlwind Steel Buildings

Worms opened the hearing at 7:44 P.M. Jim Hemker, EDA Vice President brought forward the recommendation and proposal approved by the EDA. Scott Hamak gave a summary of the legal process to follow in the sale of the land and approval of the business subsidy. It was noted that the company anticipates building as soon as possible. The company has agreed to provide 20 jobs immediately and 35 within one year paying an average of $12.00 per hour. Company representatives of Whirlwind projected approximately 50 jobs at the facility to be realistic within one year. The company requested Job Opportunity Business Zone (JOBZ) benefits and the EDA recommended the business subsidy. No other business subsidy was requested nor considered as a result. Joe Thompson, Whirlwind Chief Finance Officer noted that it is their intention to apply and have been given assurances from State officials that they would receive a $500,000 Minnesota Investment Fund (MIF) grant which would be applied toward equipment purchases and in turn paid back to the City of Freeport. Doug Sanders, Whirlwind construction coordinator noted that all contracts on the construction of the building would be made with local contractors totaling about $1 million distributed in the local economy. Rick Neeley, Whirlwind Vice President of Manufacturing noted the company's sincere appreciation to Paul Hetland, the EDA, and the City of Freeport for their hard work in this process. Jim Schulz gave a breakdown of the public improvements being considered for Industrial Park Plat 5. Hetland gave a detailed review of the costs from the engineer and the revenue sources. Hetland also noted that Whirlwind had paid the $5000 development fee. Worms moved and Humbert seconded a motion to closed the hearing at 8:39 P.M. Motion carried 5-0.

Welle moved and Hemker seconded a motion approving EDA Resolution 2006-002. Discussion offered. Motion carried 7-0. Humbert moved and Goebel seconded a motion approving Resolution 2006-009. Discussion offered. Motion carried 5-0. Humbert moved and Joe Hennen seconded a motion approving Resolution 2006-010. Discussion offered. Motion carried 5-0. Goebel moved and Tim Hennen seconded a motion approving Industrial Park Plat 5 as recommended. Discussion included a notation that all in attendance agreed to the easements as proposed on the draft plat. Motion carried 5-0.

Worms moved and Tim Hennen seconded a motion to close the hearing the joint meeting at 8:42 P.M. Motion carried 7-0 and 5-0.

Hearing: 3.2 Annual Liquor License

Worms opened the hearing at 8:42 P.M.

The hearing opened with insurance questions and comparisons to other liquor licenses permissible in the City. Randy Synstad, co-owner of Charlie's Cafe publicly stated his intentions to sell wine and beer. Ed and Jackie Atkinson, owners of Ackie's Pioneer Inn mentioned several concerns about the added number of licenses in a city the size of Freeport and the long-time understanding that the City only had three on-sale licenses and that they had always purchased part of the remaining third license. Hetland commented that Freeport City Code specifies that there are three on and three off-sale licenses available, but makes no indication of 3.2 annual licenses. He also stated that he would research past minutes to research if it was formally understood that the Corner Pub and Ackie's paid for a third on-sale license in an effort to not allow any more licenses in the City. Hetland further mentioned that the fee is being further researched due to the fact that under state statute fees must reasonably reflect actual expenditures by the City. There was further discussion on the amount of the fee and the numbers of licenses in the City.

Worms moved and Humbert seconded a motion to close the hearing at 9:19 P.M. Motion carried 5-0.

Humbert moved and Goebel seconded a motion to postponed a decision on the matter for one meeting. Staff was instructed to draft changes to the current ordinance, draft how many could be available, and the application process. Hetland stated that he would research more information and provide it at the next regular meeting. Motion carried 5-0.

Hearing: Sign Ordinance

Hamak gave an overview of the proposed sign ordinance. The draft was a lengthy and complex document designed to be cut down and tailored to the needs of Freeport. Hamak suggested that a committee be formed to look into the topic and make recommendations. Worms called for an ad hoc committee to explore recommendations on the sign ordinance. Joe Hennen, Tim Hennen, and Dave Humbert volunteered to sit on an ad hoc sign committee to meet in the near future and report at a future Council Meeting. In the meanwhile, the moratorium on all signs was kept except on the replacement of current signs as needed.

Tim Hennen moved and Joe Hennen seconded a motion to postpone the hearing. Discussion offered. Motion carried. 5-0.

Hearing: Adult Use Ordinance

Worms opened the hearing at 10:03 P.M. Worms and Hamak gave a background of the current ordinance and the need for an updated one to give more control to the City to regulate adult oriented businesses. Hamak further noted that one of the major elements needed is to establish a licensing process and to ensure that the City researches and studies the issue. Hamak suggested that a ad hoc committee be established. Worms and Goebel volunteered to serve on the ad hoc committee. Worms moved and Tim Hennen seconded a motion to postpone a decision on the issue until a recommendation is delivered from the ad hoc committee. Discussion offered. Motion carried 5-0.

Worms called for a 5 minute recess at 10:20 P.M. Council reconvened at 10:25 P.M.

Open Public Forum

No one was available to approach Council.

Claims

Tim Hennen moved and Joe Hennen seconded a motion to approve the claims in the amount of $22,260.04. Discussion offered. Motion carried 5-0.

Joe Hennen moved and Humbert seconded a motion to approve the payroll claims in the amount of $6534.04. Discussion offered. Motion carried 5-0.

Old Business

Maintenance Building Status Report

Dasher reported that everything is completed in the updates to the maintenance building.

Tool box

Worms brought forward his request for great organization in the maintenance building and suggested that a professional tool box be purchased. Humbert mentioned a tool box that could be purchased with multiple drawers and that would be mobile and lockable. He estimated that the tool boxes would be about $500. Goebel moved and Tim Hennen seconded a motion to purchase two tool boxes for no more than $520. Discussion offered. Motion carried 3-1. Humbert abstained.

Consent Agenda

Goebel moved and Humbert seconded a motion to approve the consent agenda which included the following: set a hearing for a variance request for Dr. Deb Proechle which would allow a handicapped accessibility expansion to her building with the hearing date for April 12, 2006 at 7:30 P.M., Resolution 2006-006 which supports truck weight limits to protect the public safety and municipal roads, and a 3.2 Temporary Liquor Licenses for Freeport Softball and Rec Club for June 2, 3, and 4 and for July 28, 29, and 30. Motion carried 4-0. Joe Hennen abstained.

Report – Jim Schulz, SEH, City Engineer

Industrial Park

Schulz and Hetland gave an overview of the Industrial Park Phase 2 public improvement project and funding sources. Humbert moved and Joe Hennen seconded a motion to order the feasibility report and cost estimate for the Industrial Park Phase 2 Public Improvement Project. Discussion offered. Motion carried 5-0.

Report – Joel Dasher, Public Works Director

Dasher provided a verbal report. He provided a written report outlining the expenses incurred with the street sweeper and a proposal to purchase a used one. Hetland reported that the 2006 Budget included a line item expense for a street sweeper of $17,765.85. Dasher reported that for reference the City of Melrose spent approximately $103,000 for their street sweeper and that a new one is about $150,000. Tim Hennen moved and Joe Hennen seconded a motion approving the acquisition of a new street sweeper for $12,000. Discussion included inquiring on selling the current street sweeper to the City of New Munich or perhaps on eBay. Dasher and Hetland agreed to look into the matter. Motion carried 5-0.

Report – Paul Hetland, City Clerk/Treasurer

Hetland provided a verbal report. He stated that he plans to be on vacation May 15-19, 2006. He stated that there are law enforcement concerns on 2nd Street North East and the desire from a nearby resident for greater law enforcement in the City. Hetland reported that City Council met with the officials from Oak Township on Monday, March 20, 2006 and agreed to create a joint powers resolution with a committee to review all annexations and joint jurisdictional issues. He further noted that the meeting went very well and both sides look forward to the creation and implementation of the proposed agreement. Until an agreement can be signed, the City of Freeport and Oak Township agreed to move forward in the spirit of the agreement. Worms congratulated Hetland for his work on the Whirlwind transaction. Hetland appreciated the compliment and noted that most of his time was dedicated in the last few weeks with the opportunity.

Hetland also noted that through his attendance at the recent Minnesota Municipal Clerks and Finance Officers (MCFOA) conference in St. Cloud that he was informed that the Secretary of State's Office (SOS) will be conducting random election reviews in a three phase process this year per a new state statute. The new law was supported by the SOS. Hetland noted that the reviews are at the cost of the election entity and therefore if Freeport was selected as one of the 85 cities that it could mean to a election budget overrun due to this unanticipated cost. Also, it is to be noted that the three phase review process is an escalating one.

At 11:54 P.M. Joe Hennen moved and Tim Hennen seconded a motion to adjourn the meeting. Motion carried 5-0.