Loading...
HomeMy WebLinkAbout07/14/1986CITY OF APPLE VALLEY Dakota County, Minnesota July 14, 1986 Minutes of the special meeting of the City Council of Apple Valley, Dakota County, Minnesota, held July 14th, 1986, at 8:00 o'clock p.m. at City Hall. PRESENT: Councilmembers Goodwin, Holton, Humphrey and Savanick (attended at 8:06 p.m.); City Administrator Asleson and City Clerk Mueller. ABSENT: Mayor Branning. Acting Mayor Holton called the meeting to order at 8:00 p.m. Acting Mayor Holton called the public hearing to order at 8:01 p.m. PUBLIC HEARING on establishing Tax Increment District No. 3, Apple Valley Commons II, COMMONS II TAX and noted receipt of the affidavit of publication of the hearing no- INCREMENT DIST. rice. Mr. Asleson reviewed the plan for an eight-year economic development district. No comments have been received from either the County Board or the School District. The proposal is to issue $1,115,000 of tax increment bonds of which $653,250 will be used for land acquisition within the district. A development/ special assessment agreement on the office building proposal will be prepared for the Council to consider on July 30, 1986. (Councilmember Savanick attended during this time. ) Councilmember Goodwin asked when the estimated $161,750 for County facilities would be spent? Mr. Asleson said that is unknown now and would only be used to assist in ac- quisition if the City is requested to do so by the County. Bob Substad, of Apple Valley Commons, was present to answer questions. Acting Mayor Holton asked for questions or comments from the public and Council. There were none and the hearing was declared closed at 8:08 p.m. MOTION: of Goodwin, seconded by Humphrey, adopting Resolution No. 1986-135 approving the establishment of Tax Increment Fin- ancing District No. 3 and the adoption of a tax increment financing plan ($1,115,000) therefor in Development District No. 2 of the City. Ayes - 4 - Nays - 0. RES. 1986-135 ESTABLISH TAX INCREMENT DISTRICT 3 Acting Mayor Holton called the public hearing to order at 8:09 p.m. PUBLIC HEARING on establishing Tax Increment District No. 4, Galaxie Warehouses, and WAREHOUSES TAX noted receipt of the affidavit of publication of the hearing notice. INCREMENT DIST. Mr. Asleson reviewed the plan for the redevelopment district which proposes collecting increments for up to 20 years. It is proposed to issue $1,270,000 of tax increment bonds of which $715,000 will be used for land acquisition within the district. The'project consists of four buildings, phased over three years. The in- crements will not fully come on line until 1991. Mr. Asleson stated it is important to note that if the buildings do not come on line as anticipated, there would be a pos- sibility of a tax levy to pay the bonds. Ralph Linvill, of AVIP Partnership, was present to answer questions. Dennis Griswold, of Griswold Architects, showed site plans for the buildings. The first building will be located at 146th Street and Galaxie Avenue, facing 146th Street. Bob Vanney, also of Griswold Architects, showed renderings of the building and described it. Acting Mayor Holton asked for questions or comments from the public and the Council. There were none and the hearing was declared closed at 8:23 p.m. CITY OF APPLE VALLEY Dakota County,. Minnesota July 14, 1986 Page 2 MOTION: of Humphrey, seconded by Goodwin, adopting Resolution No. 1986-136 approving the establishment of Tax Increment Fin- ancing District No. 4 and the adoption of a tax increment financing plan ($1,270,000) therefor in Development District No. 2 of the City. RES. I986-136 ESTABLISH TAX INCREMENT DISTRICT 4 Councilmember Savanick asked what the timing of the buildings is? Mr. Asleson reviewed pages 30 and 31 of the plan. He said a one-year delay would be acceptable as far as cash flow projections have been made. Councilmember Humphrey said he has looked at the area and is satisfied it is a redevelopment area. Councilmember Goodwin asked what would happen if the total project is not completed? Mr. Asleson said money for the land acquisition would be paid out in phases. If a phase does not occur, the money would not be paid; however the bonds would still have to be repaid. Ralph Linvill said he understands part of the development agrement will be a contract for them to pay the taxes if the increment is not there and that is acceptable to them. Vote was taken on the motion. Ayes - 4 - Nays - O. MOTION: of Humphrey, seconded by Savanick, setting a special meeting at 12:00 noon on Wednesday, July 30, 1386, for the purpose of conducting a bond sale. Ayes - 4 - Nays - 0. SET SPECIAL MEETING RES. 1986-137 SET TAX INCREMT. BOND SALE MOTION: of Savanick, seconded by Goodwin, adopting Resolution No. 1986-137 providing for the issuance and sale of $2,385,000 General Obligation Tax Increment Bonds of 1986 at 12:00 noon on July 30, 1986. Steve Mattson, of Juran & Moody, reviewed the proposed sale and said it will be handled in two parts, the tax increment bonds and the other general obligation bonds. Council- member Savanick asked about the implications of this large sale on the City's bond rating. Mr. Mattson said that is unknown but the park bonds, for example, were voter approved so there really is no choice but to issue them. Vote was taken on the motion. Ayes - 4 ~ Nays - 0. MOTION: of Goodwin, seconded by Humphrey, adopting Resolution No. 1986-138 providing for the issuance and sale of $7,285,000 General Obligation Bonds at 12:00 noon on July 30, 1986. RES. 1986-138 SET GEN. OBLIGA. BOND SALE Mr. Asleson reviewed the details of the bond issue consisting of $350,000 Equipment Bonds, $2,965,000 Improvement Bonds and $3,970,000 Park Bonds. Vote was taken on the motion. Ayes - 4 ~ Nays - O. Mr. Mattson said he will be submitting the bond sale material for private insurance considerations. There is no cost to the City and the insurance would be paid for by the underwriters if they chose to take it. The effect of such insurance would be to create AAA rated bonds and would be an underwriters option. CITY OF APPLE VALLEY Dakota County, Minnesota July 14, 1986 Page 3 Dick Ling, Street Supervisor, was present and reviewed bids received WHEEL LOADER for a wheel loader. Based on total cost bid, he would recommend award BIDS to Ziegler for $96,275.00 or a total cost bid of $50,275.00. A repre- sentative of Case company was present and asked if there was any comment on having only one bid meeting specifications. Mr. Asleson said this equipment has been field tested previously and the Case equipment would not be acceptable. Other vendors can meet the specifications; however, they have chosen not to submit a bid under total cost bidding. Information on bids in other areas has been reviewed and the cost appears acceptable. MOTION: of Humphrey, seconded by Goodwin, adopting Resolution No. 1986-139 awarding the purchase of an articulated wheel loader to Ziegler, Inc., the low bidder meeting specifications, in the amount of $96,275.00 with a net total cost of $50,275.00. Ayes - 4 - Nays - 0. RES. 1986-139 PURCHASE WHEEL LOADER Dick Ling commented on the question raised at the July 10, 1986, meeting about the engine of a tandem axle truck to be purchased. He has reviewed the information and is satisfied that the Cummins engine is acceptable and meets the intent of the specifications. MOTION: of Humphrey, seconded by Goodwin, adopting Resolution No. 1986-140 awarding the purchase of a tandem axle truck to North Star International Trucks, the low bidder, in the amount of $50,165.17. Ayes - 4 - Nays - 0. RES. 1986-140 PURCHASE TANDEM TRUCK Preliminary report on Fischer Ponding Area Improvements was removed from agenda. The Council received Mr. Asleson's memo dated July 1, 1986, concern- FIRE RELIEF ing the Firefighters' Relief Association request for an increase in ASSN. PENSION pension level. Mr. Asleson said the Council must approve any crease in benefits, subject to an actuarial survey. The last change was in 1984 when it was increased to $10.00 per month per year of service. The request at this time is for $11.00. He reviewed the combination of state aid and tax levy required to fund the benefit. Because the members of the Association are 'interested in increasing benefits, the concept of a tax levy of $300 per existing firefighter per year for the next four years has been discussed. The Association would not request an increase until 1990 and should then be eligible for a $15.00 per month benefit. An actuarial survey would, of course, be required at that time and the Council, in 1990, would actually have to approve the increase. Dave Ganfield, Treasurer, and Theron Wilson, President, of the Association, were present to answer questions and express their support of the proposal. MOTION: of Humphrey, seconded by Goodwin, adopting Resolution No. 1986-141 approving amendments to the Bylaws of the Apple Valley Firefighters' Relief Association increasing the pension to $11.00 per month per year of service effective August 1, 1986, and accepting the concept of levying $16,930 in 1987 and $15,300 in 1988 and 1989 to support the benefits. RES. 1986-141 FIRE RELIEF BENEFIT INCREASE CITY OF APPLE VALLEY Dakota County, Minnesota July 14, 1986 Page 4 Ceuncilmember Goodwin asked why other associations, referenced in the memo, have larger levy requirements for similar benefits and could this be a concern in the future? Mr. Asleson said the funding requirements are generally based on the actuarial makeup of the membership. Some older associations may still be catching up on unfunded Liabilities. He would not foresee this as a problem. Vote was taken on the motion. Ayes - 4 - Nays - O. MOTION: of Humphrey, seconded by Savanick, to pay the claims and bills, checks numbered 49533 through 49588, in the total amount of $220,766.66. Ayes - 4 - Nays - 0. CLAIMS & BILLS CANCEL MEETING MOTION: of Goodwin, seconded by Humphrey, cancelling the informal meeting of July 17, 1986. Ayes - 4 - Nays - 0. Councilmember Savanick said she has received calls from residents HIGH SCHOOL & concerned about parking problems and other problems arising from ath- PARK PARKING letic activities at Apple Valley High School. She asked whether the PROBLEMS City should consider requiring toilet facilities whenever large groups of people are participating in organized activities? The Council discussed this and agreed there are problems, but such a requirement would probably not solve them. Parking problems also exist at other park areas of the City. The Council agreed the Park Director should discuss the problem at 137th and Hanover with the School District. MOTION: of Humphrey, seconded by Goodwin, to adjourn. Ayes - 4 - Nays - 0. The meeting was adjourned at 9:31 o'clock p.m.