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062090 CC WS Min '. . . CITY OF SHOREWOOD CITY COUNCIL WORKSHOP MINUTES, JUNE 20, 1990 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 1 MINUTES CALL TO ORDER Mayor Haugen called the meeting to order at 8:00 PM. ROLL CALL Present: Mayor Haugen, Councilmembers Gagne, Stover, Brancel and Watten. Administrator Whittaker. Finance Director Rolek, George Sherman of Sherman-Boosalis and Robert Thistle, Financial Consultant, Springsted, Inc.. AGENDA REVIEW Gagne moved, Stover seconded, to approve the Agenda with the following additions: 1. 1.C. Park Report by Councilmember Watten. 2. Under Other. Administrator Whittaker will also report on Park matters. PARK COMMISSION REPORT Councilmember Watten reported that the Park Commission discussed having an opening ceremony at Freeman Park. This was still tentative and would be decided later. Watten stated that the Park Commission requested a meeting with the City Council regarding the engineering problems with Freeman Park. They felt all parties should attend this meeting. The Council decided they should meet with Engineer Norton and the other Engineers separately, before the joint meeting with the Park Commission. The meeting was set for June 27. 1990 at 7:00 PM. REVIEW PROPOSED CONTRACT FOR TIF DEVELOPMENT BY AND BETWEEN THE CITY AND SHERMAN-BOOSALIS. Administrator Whittaker presented the staff's proposals for the Guaranty of the TIF bonds. The main concern of the staff is to cover the city's risk. The staff maintained that the maximum period of risk would be four years. In a worst case scenario, if there were no revenue from the development, the property is forfeited for taxes and the City could assume ownership of the property. The staff, therefore, recommended that Sherman Boosalis supply a letter of credit for four years. George Sherman of Sherman-Boosalis explained his firm's proposals: 1. Sherman-Boosalis could not afford to guarantee the bonds for four years unless there was a gas station/convenience store on the site. 2. If the City would not allow a gas station/convenience store Sherman-Boosalis was still willing to provide a letter of credit for the two highest years of debt service. . . . CITY OF SHOREWOOD CITY COUNCIL WORKSHOP MINUTES, JUNE 20, 1990 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 2 3. The city could issue revenue bonds instead of general obligation bonds. Mr. Sherman felt that without a gas station/convenience store the development would not have the economic punch for a four year guarantee. Mayor Haugen and Councilmembers Gagne, Brancel, Watten and Stover felt there could be no change on their position regarding the gas station without another public hearing. The final agreement would include a letter of credit at a level which would guarantee the three highest years of debt service. Sherman- Boosalis and the City felt this was a reasonable risk on both parts. There would be an increase in value of the property as soon as the building starts and the improvements are in. Mr. Sherman reiterated his position that without a gas station/convenience store, the development would be difficult to market. Stover asked how long the marketing would take and how long is the City committed? Whittaker said the original agreement called for the project to be started by the end of 1990. Sherman felt that he would know before the end of the year, if he could secure sufficient leases for the development. Councilmember Gagne asked if future City Councils are obligated to build the intersection. Attorney Froberg said a new City Council would be bound by any binding agreement that was signed by previous Councils. The site was also zoned for multiple dwellings and Mr. Sherman felt this could also be an excellent development. Stover asked what would happen if there was a change in the Planning Commission's decision? Froberg said there would have to be a new C.U.P. and a hearing. Watten moved, Stover seconded, the motion to prepare agreement on the TIF development. Motion carried - 4/1 (Brancel). Froberg stated that the agreement should include a time frame to market the development. Mr. Thistle thought the Council was talking about two separate issues. If a letter of credit is not provided, then the agreement is null. There can be no change in the development agreement without the approval of Trivesco. If Sherman-Boosalis buys the property, they buy the development agreement. DISCUSSION OF FINANCING THE GLEN ROAD DRAINAGE PROJECT. Whittaker stated that there were two ways to finance the drainage project. 1. Through the General Fund. 2. Through a Special Taxing District. A Special Taxing District was easier. administrativly, than a Special Assessment. ~ . . . CITY OF SHOREWOOD CITY COUNC I L WORKSHOP MINUTES, JUNE 20, 1990 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 3 Haugen said the City was allowed to bank 1/3 of a mill. for drainage projects. Finance Director Rolek said that, with an assessed value of 9 million, 1/3 mill. would be about $27.000. The Glen Road project could cost $100,000. Stover asked if staff has contacted the area developers to determine their part in financing the project? Does Engineer Norton have a comprehensive plan for all drainage projects? Whittaker said he would contact developers. Engineer Norton has determined the sites in the City that will need drainage but the projected price might be four million. Stover felt the benefited properties should pay. Gagne felt all people in area benefited and the city should do something within one year as this was a twenty year old problem. Watten wanted to know what was the frequency of doing these projects on demand. City would need an Ordinance to set up a Special Taxing District. This would be an Ad Valorem tax and deductible. Whittaker said that Mr. Norton would prepare the numbers for people. The cost would be $1200-$1300 per family over 5-10 years. Council advised Froberg to get information for an Ordinance. Set up a public hearing. DISCUSSION SCHEDULE/PROCESS FOR ELDERLY HOUSING AND COMPREHENSIVE WATER PLAN UPDATE. Gagne had contacted a representative of Real Life Development. He would be willing to talk to the Council on July 16, 1990. Mr. Frank Reese would also like to speak. Watten felt there should be no more than two speakers a night. One would talk at 7:30 and one at 9:00. WATER PLAN Water plan would be discussed at the regular City Council meeting of June 25. 1990. OTHER Whittaker said the Park Commission reviewed the concession placement and received a $200.00 deposit for damages. The Commission decided to place the stand between the fields. wanted the stand in the parking lot. Haugen read letter from Tonka United Soccer League. Shorewood provides four fields for soccer. Badger field could not be used this year because of reseeding. Haugen felt Whittaker should find out the need for fields and what other communities are providing and draft a letter to Tonka United. Whittaker indicated that the league had no contract with the City. Gagne felt they should sign contracts, as every other sports organization does. stand Park Council . . . CITY OF SHOREWOOD CITY COUNCIL WORKSHOP MINUTES. JUNE 20. 1990 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 4 Watten said the Park Commission proposed an annual appropriation of $25,000 for unanticipated maintenance and minor capital improvements. They are also developing a plan for capital improvements. Rolek said these expenses should be estimated and included in the annual budget. LMCD deadline for comments had been changed to June 28, 1990. ADJOURNMENT Gagne moved, Watten seconded to adjourn workshop at 10:50 P.M. 4