Agenda
Balderston moved and Humbert seconded a motion approving the meeting agenda. Discussion offered.; Motion carried 5-0.
Sale of Land in the Freeport Industrial Park
Worms called to order the joint meeting of the Freeport City Council and Freeport Economic Development Authority (EDA) at 7:36 P.M.
Paul Hetland read aloud the business fact sheet for Integrated Recycling Technologies, Inc. (IRT) a copy of which is on file for review.;
Worms opened the floor for comments.
Gary Pierskalla noted the assessments and land purchase he and his wife were a part of a couple years ago.; He was concerned regarding the fairness of the land sales in the Industrial Park and how land prices were reached and that some sales, like the one under consideration, may be subsidized by the public.
EDA Members noted a variety of points to explain the recommendation, note fairness in the decision, and to answer Mr. Pierskalla's concerns.;
Hetland noted that the assessments for the Pierskalla lot were set at a time when the estimated project cost was approximately $295,000 more than the actual final cost.; It was also noted that due to the actions of the prime contractor, City Council took these actions into account and reduced the proposed assessments out of fairness to the Pierskalla's at the time. It was further noted that even prior to the assessment process, the EDA and Council set at the time a fair price for the land.; All of this was acknowledged by Gary and Linda Pierskalla in the audience.;
It was also noted that the last sales in the Industrial Park were nearly two years ago, the longest time since the Park's beginning of having no sales.; Meanwhile, the bond for the improvement continues to accumulate interest and, like a mortgage or credit card, should be paid sooner to avoid larger expenses through greater interest payments.;
Furthermore, with current economic conditions, no one disagreed with the example mentioned that if a building was built only two years ago that the exact same structure would cost more then than now.; Pierskalla asked if he built at the wrong time and Hetland answered that he had as did anyone who built two years ago.;
John Thelen requested that Hetland give a brief synopsis of how the EDA set the land price.; Hetland reviewed all of the numbers from the cost of the project to the costs to purchase the land to the grants received to achieve an amount that the EDA must sell the land for to balance the accounts in this project.
Rodney Atkinson noted that the business subsidy provided to IRT was the reduced land sale, but that the taxes generated in the next five years would compensate for the reduction.; Thelen further noted that the IRT land is also in a tax increment financing (TIF) district and the City would be able to use those captured increment funds to pay off the bond debt even faster.;
Jim Hemker noted that the EDA had spent a considerable amount of time in four meetings working with Dale Overman and Scott Ruud in reaching the unanimous recommendation to proceed with the sale and to ensure there would not be a burden on tax payers.; On the contrary, the sale would provide a $72,000 payment for the bond and begin generating an estimated $5000 per year in taxes alone (not including the TIF dollars) to the City's tax base with their overall taxes being approximately $12,000 per year.;;
Gary and Linda Pierskalla appeared to appreciate the open and honest answers and information presented.; They further noted that they were not upset with anyone and wanted to conveyed their sincere welcome to Dale Overman and Scott Ruud as new businesses to the Industrial Park.; Overman and Ruud conveyed their appreciation of the gesture of good will, as did the EDA, City Council, and City Staff.;
Without further comment, Hetland gave a brief review of the various motions prepared for Council and the EDA.; Scott Hamak, City Attorney gave a detailed review of each action.; Hamak noted that the prepared documents should be corrected to note the land sale being $72,000 for 4.8 acres of land and a closing on or before April 30, 2008.; Hamak also noted that it is standard policy to allow the Mayor and City Clerk and the EDA President and EDA Secretary, who are Matthew Worms and Paul Hetland, to make any non-material changes to the documents and all materials changes coming back to the appropriate bodies for those alterations.;
Worms closed the public hearing at 8:27 P.M. after seeing no further comments from the public.; Shortly after, Worms requested action on the proposed resolutions.
Balderston moved and Welle seconded a motion approving EDA Resolution 2008-01 approving sale and purchase of the property.; Discussion offered.; Motion carried 7-0.
Humbert moved and Joe Hennen seconded a motion approving Resolution 2008-003 approving sale and purchase of the property as recommended by the EDA.; Discussion offered.; Motion carried 5-0.;
Hemker moved and Balderston seconded a motion approving EDA Resolution 2008-02 approving the business subsidy agreement (BSA).; Discussion offered.; Motion carried 7-0.;
Balderston moved and Humbert seconded a motion approving Resolution 2008-004 approving the BSA as recommended by the EDA.; Discussion offered.; Motion carried 5-0.;
EDA Resolution 2008-03 and Council Resolution 2008-005 as a Request for Action on the proposed sale was noted by Scott Hamak to be self-evident with the sale and approved by affirmation.;
Joe Hennen moved and Tim Hennen seconded a motion approving Resolution 2008-006 approving the proposed lot changes as a minor subdivision.; Discussion offered.; Motion carried 5-0.;
Worms thanked the EDA Members and Paul Hetland for a job well-done and for their time in this transaction.; He also welcomed IRT to the Freeport Industrial Park.; Worms adjourned the joint meeting of the EDA and City Council and called a recess at 8:35 P.M.
The meeting was called back to order at 8:45 P.M.;
Approval Of The Minutes
Humbert moved and Tim Hennen seconded a motion approving the meeting minutes for March 11, 2008.; Discussion offered.; Motion carried 5-0.;
New Business
Open Public Forum
No one addressed Council.;
Tim Otremba, Tri-City Paving
Tim Otremba and another representative of Tri-City Paving were present to discuss the final payment for the 2005 Main Street Public Improvement Project.
They stated that they were confused that the project wasn't closed out.;
Schulz noted that the project was substantially completed in the fall of 2007.; He further noted that there was settlement and heaving on the project and because the project was not been finalized, due to problems with the prime contractor's subcontractors, the City needed to note the road issues as punchlist items instead of warranty items under the contract.;
Schulz mentioned that there were two methods to address this point of the project:; by finalizing the project and beginning the two-year warranty period under the contract or withhold payment and complete the punchlist before releasing the final payment.;
Otremba noted that Tri-City Paving had completed the last punchlist and yet punchlists continue to be developed.;; Schulz responded that the statement is partially factual but that each time the punchlist would be completed a considerable amount of time would lapse in the contractor getting the proper documentation to the City and more road and sidewalk issues would arise leading to the need for a new punchlist.; Otremba admitted to this cycle.;
Worms conveyed the City's sentiments that the project in 2005 went well and met the public's expectations to maintain traffic flow and sensitivity to business needs.; However, he also noted the continuance of the project and the desire to close it out.
Otremba requested the City to lower the retainage amount as a compromise solution.;
Worms asked Schulz what options and flexibility the contract gives the City in this situation.; Schulz stated that the contract specifically outlines a 5% retainage, which is currently $107,091.99, but both parties can agree to contract addendums.; Worms asked about additional costs for creating an addendums.; Tri-City Paving agreed to pay for any additional addendum costs.;
Worms asked Hamak if it would be a breach in contract to reduce the retainage amount.; Hamak stated that it would not through an amendment.;
Hetland noted that the warranty period or the warranty bond would not be activated because the project would not be finalized yet.
Council discussed various withholding proposals.
Joe Hennen moved and Humbert seconded a motion to release $60,000 of the retainage amount now and hold the remaining $47,091.99 until the punchlist items are completed and the project is finalized in the spring.; Discussion included the acceptance and appreciation of the offer by Tri-City Paving.; Motion carried 5-0.;
Winter Parking Code Enforcement
Humbert mentioned the inconsistency of tickets and that the enforcement of winter parking violations be more consistent by the Stearns County Sheriff.; Balderston noted that Council Members should take some time to research and revisit the City Code at a later meeting.; Worms mentioned the point that some communities issue snow emergencies or odd and even street parking.; Hetland noted that he would discuss this matter with the Stearns County Sheriff and report at a future meeting.;
Old Business
Hetland reported that the City Prosecuting Attorney Robert Pottratz has been notified of the Rick Leukam deck violation and is working on prosecuting the offense.;
Worms mentioned a League of Minnesota Cities article on wood burning furnaces and asked Hetland of the status of the examination of a proposed ordinance.; Hetland noted that he will present information at a future meeting.; Worms noted that it would be preferable to approve an ordinance on the matter by fall.
Reports
Public Works Director's Report, Joel Dasher
Dasher provided a written report which is on file for review.;
Dasher mentioned that a large amount of water was recorded coming into the waste water lines recently.; Through discussion, it was concluded that the periodic surge in water probably coincides with the flushing of water lines at the Fire Hall.; Dasher noted he will contact Fire Chief John Gilk in the matter.; It was noted that inflow (water purposely put in waste water lines) and infiltration (water that seeps into waste water lines) is still an area of City concern to maintain stable waste water pond levels and avoid the costly expansion of stabilization ponds.; Council concurred and encouraged further efforts to educate the public on inflow issues and work on areas of infiltration such as plugging manhole covers where problems exist.
City Clerk/Treasurer's Report, Paul Hetland
Hetland provided a written report that is on file for review.
Hetland read a draft letter regarding the Capx2020 Project which has a 1000 foot wide consideration corridor running parallel to Interstate 94 and overlapping dozens of buildings including homes and businesses alike.; Council approved the letter as written to be signed by the Mayor as recommended by Hetland.
Hetland brought forward his draft proposal of a Comprehensive Planning process as requested by Council.; Council appreciated the proposal as practical and obtainable.;
Hetland brought forward a request from him and Pottratz to prosecute Anthony Ellman for violating the winter parking codes on four separate occasions and refusing to pay the approximately $100 tickets.; Humbert moved and Balderston seconded a motion approving of the prosecution process against Anthony Ellman for failure to pay his winter parking violation tickets.; Discussion offered.; Motion carried 5-0.;
Worms congratulated Paul Hetland for recently obtaining the Minnesota Certified Municipal Clerk designation.; Hetland appreciated the City's support of his education to assist the People of Freeport.;;
Worms thanked Tim Hennen, Assistant Mayor for his attendance at the "Mayors for Meals" program on March 19 as a part of the Meals on Wheels Program.; Tim Hennen appreciated Worms' words and enjoyed the experience.
Consent Agenda
Joe Hennen moved and Balderston seconded a motion approving the Consent Agenda which included the following: Claims in the amount of $ $13,660.51; claims for payroll in the amount of $6631.86, Resolution 2008-007 setting the hearing to vacate easements on the IRT Property for April 29, 2008; and snow removal agreements for Sacred Heart Parish and Tri-City Christian Center.; Discussion offered.; Motion carried 5-0.;
Hetland noted that the quarterly payment for Council payroll was mistakenly omitted from the Consent Agenda but could distribute the checks in the next week.; Council noted that the early payment was not necessary and; payment could be made for the next Council Meeting.;
At 10:12 P.M. Worms moved and Balderston seconded a motion to adjourn the meeting. Motion carried 5-0.;
