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021191 CC Reg Min . , . . . CITY OF SHOREWOOD REGULAR CITY COUNCIL MEETING . MONDAY, FEBRUARY 11, 1991 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 1 M I NUT E S CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL Present: Mayor Brancel, Councilmembers Gagne, Lewis, Daugherty arrived at 8:30 P.M., Acting City Administrator Nielsen, City Attorney Froberg, City Finance Director Rolek, City Engineer Norton, Engineers Joel Dresel and Ron Bray of Orr, Schelen, Mayeron. Absent: Councilmember Stover REVIEW AGENDA Nielsen asked that item 11 be deleted. The applicant asked that his request for a variance be postponed until the Feb. 25th meeting. Gagne moved, Lewis seconded, to approve the agenda as amended. Motion carried - 3/0. APPROVAL OF MINUTES A. CITY COUNCIL MEETING - JANUARY 14, 1991 (ADJOURNED SESSION). Gagne moved, Lewis seconded, to approve the City Council Meeting Minutes of Jan. 14, 1991 (Adjourned Session held January 15, 1991). Motion carried - 3/0. B. REGULAR CITY COUNCIL MEETING - JANUARY 28, 1991 Gagne moved, Lewis seconded, to approve the City Council Meeting Minutes of Jan. 28, 1991 with the following correction: 1. Pg. 12, Gagne said the Senior Citizens Advisory Committee will visit three housing projects on FebrU4ry 13. CONSENT AGENDA RESOLUTION NO. 20-91 RESOLUTION NO. 21-91 RESOLUTION NO. 22-91 RESOLUTION NO. 23-91 Gagne moved, Lewis seconded, to adopt the following Consent Agenda: 1 7.17. G'-.17 . CITY OF SHOREWOOD REGULAR CITY COUNCIL MEETING . MONDAY. FEBRUARY 11. 1991 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 2 RESOLUTION NO. 20-91 "A RESOLUTION ESTABLISHING A POLICY FOR THE REPLACEMENT OF DAMAGED MAILBOXES." B. RESOLUTION NO. 21-91 " A RESOLUTION ESTABLISHING A POLICY FOR THE PLACEMENT OF STREET LIGHTS." A. C. RESOLUTION NO. 22-91 "A RESOLUTION AUTHORIZING SUBMITTAL OF THE 1991 HENNEPIN COUNTY GRANT APPLICATION FOR MUNICIPAL SOURCE SEPARATED RECYCLABLES." 13 9/ D. RESOLUTION NO. 23-91 "A RESOLUTION APPROVING REFUSE COLLECTOR'S LICENSES." E. AUTHORIZE CHANGE IN CITY HALL CLEANING SERVICES F. RESOLUTION NO. 24-91 "A RESOLUTION GRANTING_A CONDITIONAL USE PERMIT FOR ADDITIONAL ACCESSORY SPACE FOR GREG ERICKSON" G. RESOLUTION NO. 25-91 "A RESOLUTION GRANTING AN AMENDMENT TO A CONDITIONAL USE PERMIT FOR LEE LABORE" Motion carried - 3/0. . COMMISSION REPORTS: A. PARK COMMISSION . There was no Park Commission Meeting. B. PLANNING COMMISSION Nielsen said he would report on the Planning Commission items later in the meeting. PROCLAIM MARCH 3-10 VOLUNTEERS OF AMERICA WEEK RESOLUTION NO. 26-91 Brancel read the RESOLUTION proclaiming March 3-10. Volunteers of America Week. Lewis moved. Gagne seconded. to adopt RESOLUTION NO. 26-91 "A Resolution Proclaiming March 3-10 as Volunteers of America Week." Motion carried - 3/0. APPROVE EXCELSIOR SEWER RENTAL CONTRACT RESOLUTION NO. 27-91 Attorney Froberg explained the Sewer Rental Contract with Excelsior is a one year contract which is automatically renewed. unless Shorewood notifies Excelsior by Jan 1 of the final year. 2 . . . CITY OF SHOREWOOD REGULAR CITY COUNCIL MEETING . MONDAY. FEBRUARY 11. 1991 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 3 Froberg said he discussed the contract with the Excelsior City Administrator and clarified the formula computation. The MWCC gives Excelsior the calculated Shorewood sewer flow into Excelsior. This figure is deducted from the total Shorewood sewer flow. Shorewood's payment to Excelsior is based on a percentage of Excelsior's costs. which include the cost for collection. capital outlay. and administration. The formula is as follows: Total cost divided by the number of million gallons of Excelsior's total sewer flow = the cost per million gallon._The cost per million gallons x Shorewood's calculated sewer flow into Excelsior (in millions of gallons) is Shorewood's rental cost. Gagne asked the staff to make sure the City is not being charged twice by the MWCC and Excelsior for it's sewer flow. Nielsen said the flow into Excelsior is not charged to Shorewood by the MWCC. Gagne asked if the City was lobbying MWCC. Nielsen said the City did not have a lobbyist to the MWCC. Mr. Gene Frachette was going to repreBent a nlmilier of cities, but now has applied for a position with the MWCC. Gagne moved. Lewis seconded. to adopt RESOLUTION NO. 27-91 II A Resolution Approving Joint Use Sanitary Sewer Rental Agreement with the City of Excelsior." Motion carried - 3/0. TERMINATION OF EMPLOYMENT - SANDRA KENNELLY RESOLUTION NO. 28-91 A. APPROVE FINDINGS OF FACT Gagne moved. Brancel seconded. to adopt RESOLUTION NO. 28-91 "A Resolution Approving Findings of Fact Relating to the Termination of Sandra L. Kennelly" Motion carried - 3/0 B. CONSIDER REQUEST FOR HEARING BEFORE ADMINISTRATIVE HEARING OFFICER Brancel stated that Sandra Kennelly has notified the City that she plans to appeal her termination. She has asked for a hearing before an administrative hearing officer. Gagne moved. Lewis seconded. to approve Sandra Kennelly's request for a termination hearing before an administrative hearing officer. and to direct the City Attorney to contact the Office of Administrative Hearing for the appointment of a hearing officer. Motion carried - 3/0 '. ....1 CITY OF SHOREWOOD REGULAR CITY COUNCIL MEETING . MONDAY. FEBRUARY 11. 1991 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 4 . DISCUSS LEASING SPACE FOR PUBLIC WORKS DEPARTMENT Nielsen said the Staff reviewed the City's options regarding leasing Public Works space in Tonka Bay or building a new facility on the land owned by the City. Under a leasing system, the City could pay for ~ new building in 15 years. He said there will also be a loss of tax base from the property the City currently owns. He said the matter has been referred to the Financial Advisory Board for their comments and to the Tonka Bay City Council for their reaction to zoning and other related issues. Nielsen said he has not had as many negative comments as he thought from Tonka Bay. He asked their Administrator to advise the Staff if their Council had any more comments. Brancel and Lewis said they would like to wait for the recommendations of the Financial Advisory Board. Lewis asked Nielsen when the space will be needed. Nielsen said the City will need additional Public Works space in 3 to 5 years. Gagne said the City needs to remove the salt and sand piles in the parking lot as soon as possible. . REVIEW APPLICATIONS FOR CITY ADMINISTRATOR POSITION A. SELECT TOP FIVE APPLICANTS Brancel said the City had 85 applicants for the Administrator position. These were narrowed to ten applicants. Lewis said he did not want to narrow the applicants below ten for interviewing purposes. He also wanted to be sure all references are checked. Froberg said the staff usually does that. Nielsen said there is no procedure for doing that, a consultant was hired the last time an administrator was hired. The Council agreed to continue the discussion of hiring an administrator on Wednesday. February 13, 1991 at 7:30 P.M. 1991 BUDGET CUTS LEAGUE OF CITIES RECOMMENDATION RESOLUTION NO. 29-91 Finance Director Rolek said the City will have State Aid cuts of approximately $38,000. He has asked the staff to review the budget and suggest the Jnecessary cuts to compensate for the loss of funds. Brancel read a Resolution drawn up by the League of Minnesota Cities opposing further state aid cuts to cities. . 4 . . . CITY OF SHOREWOOD REGULAR CITY COUNCIL MEETING . MONDAY. FEBRUARY 11. 1991 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 5 Gagne moved. Lewis seconded. to adopt RESOLUTION NO. 29-91 II A Resolution OpPosing Further Cuts in State Aid to Cities.1I Motion carried - 3/0. STAFF REPORTS: A. ATTORNEY I S REPORT The City Attorney had no report. B. ENGINEER1S REPORT 1. Highway Improvement Funds Status Engineer Dresel reported that the Council had asked him to inquire about the funding for the Highway Improvements. He said the Vine Hill and Christmas Lake Road Intersections will be done in 1993 and these funds are secure. The cooperative funds for the service road improvements east of Old Market Road intersection expire on July 1, 1991 if there is no contract. This date can be extended but is questionable given the current funding problems. He said there is also $265,000 available in MSA highway funds. The State Aid office was confident these funds will not be cut. C. PLANNING DIRECTOR'S REPORT Nielsen said the Erickson and LaBore C.U.P'S listed on the Consent Agenda need a 4/5 vote of the Council. Froberg said the Council must amend the Consent Agenda. Gagne moved. Lewis seconded~ to remove items F & G from the Consent Agenda Motion carried - 3/0 on a roll call vote. Gagne moved. Lewis seconded. to approve the following amended Consent Agenda. A. RESOLUTION NO. 20-91 "A RESOLUTION ESTABLISHING A POLICY FOR THE REPLACEMENT OF DAMAGED MAILBOXES." B. RESOLUTION NO. 21-91 " A RESOLUTION ESTABLISHING A POLICY FOR THE PLACEMENT OF STREET LIGHTS." C. RESOLUTION NO. 22-91 "A RESOLUTION AUTHORIZING SUBMITTAL OF THE 1991 HENNEPIN COUNTY GRANT APPLICATION FOR MUNICIPAL SOURCE SEPARATED RECYCLABLES." D. RESOLUTION NO. 23-91 IIA RESOLUTION APPROVING REFUSE COLLECTOR'S LICENSES. II ::j. . . . CITY OF SHOREWOOD REGULAR CITY COUNCIL MEETING MONDAY, FEBRUARY 11. 1991 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 6 . E. AUTHORIZE CHANGE IN CITY HALL CLEANING SERVICES Motion carried - 3/0 COUNCIL REPORTS. A. MAYOR BRANCEL Brancel said the Councilmembers can order daytime planners from Rolek. B. COUNC I LMEMBERS Gagne said the Senior Housing Task Force will meet on Wednesday. Feb. 13. 1991 to tour various Senior Housing buildings. MATTERS FROM THE FLOOR. RESIDENT asked Gagne to explain about the Senior Housing Task Force. Gagne explained that a consultant had been hired to determine if residents are interested in Senior Housing. He said the housing is for the local area residents not just Shorewood residents. . Engineer Dresel introduced Ron Bray. Transportation Engineer for Orr. Schelen. Mayeron. 8:15 P.M. ADJOURN MEETING TO SCHOOL GYMNASIUM RECONVENE REGULAR COUNCIL MEETING Councilmember Daugherty arrived at 8:30 P.M. Gagne moved. Lewis seconded. to adopt RESOLUTION NO. 14-91 "A RESOLUTION GRANTING_A CONDITIONAL USE PERMIT FOR ADDITIONAL ACCESSORY SPACE FOR GREG ERICKSON" Motion carried - 4/0 Gagne moved. Lewis seconded to adopt RESOLUTION NO. 15-91 "A RESOLUTION GRANTING AN AMENDMENT TO A CONDITIONAL USE PERMIT FOR LEE LABORE" Motion carried - 4/0 . APPEAL NOTICE TO REMOVE f 6 . . . CITY OF SHOREWOOD REGULAR CITY COUNCIL MEETING . MONDAY, FEBRUARY 11, 1991 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 6 E. AUTHORIZE CHANGE IN CITY HALL CLEANING SERVICES Motion carried - 3/0 COUNCIL REPORTS. A. MAYOR BRANCEL Brancel said the Councilmembers can order daytime planners from Rolek. B. COUNCILMEMBERS Gagne said the Senior Housing Task Force will meet on Wednesday, Feb. 13, 1991 to tour various Senior Housing buildings. MATTERS FROM THE FLOOR. RESIDENT asked Gagne to explain about the Senior Housing Task Force. Gagne explained that a consultant had been hired to determine if residents are interested in Senior Housing. He said the housing is for the local area residents not just Shorewood residents. Engineer Dresel introduced Ron Bray, Transportation Engineer for Orr, Schelen, Mayeron. 8:15 P.M. ADJOURN MEETING TO SCHOOL GYMNASIUM RECONVENE REGULAR COUNCIL MEETING Councilmember Daugherty arrived at 8:30 P.M. Gagne moved, Lewis seconded, to adopt RESOLUTION NO. 24-91 "A RESOLUTION GRANTING_A CONDITIONAL USE PERMIT FOR ADDITIONAL ACCESSORY SPACE FOR GREG ERICKSON" Motion carried - 4/0 Gagne moved, Lewis seconded to adopt RESOLUTION NO. 25-91 "A RESOLUTION GRANTING AN AMENDMENT TO A CONDITIONAL USE PERMIT FOR LEE LABORE II Motion carried - 4/0 APPEAL NOTICE TO REMOVE 6 CITY OF SHOREWOOD REGULAR CITY COUNCIL MEETING . MONDAY, FEBRUARY 11, 1991 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 7 . APPLICANT: LOCATION: JOHN ARNST 5480 TEAL CIRCLE Mr. Arnst was asked to remove an unlicensed/inoperable vehicle from his back yard. Mr. Arnst asked the Council for an extension of time until April to remove the vehicle, because it is difficult to remove it from the back yard. Gagne moved, Brancel seconded, to allow a 30 day extension of time for Mr. Arnst to remove his vehicle. Motion carried - 4/0 8:30 P.M. PUBLIC HEARING - MODIFICATIONS TO WATERFORD TIF PLAN Brancel asked the audience to sign up if they wished to speak and confine their comments to the modification of the TIF plan. City Attorney Froberg read the February 7th ruling by Judge Hedlund regarding the Snyder/Hare litigation. . Froberg explained that on Dec. 27, 1990 the City Council passed two Resolutions: 1. Approving a Tax Increment Financing development agreement with Trivesco Inc. Approving a Tax Increment Revenue bond purchase agreement with Trivesco Inc. These Resolutions resulted in a reduction in the cost of the Public Improvements and a change in the financing program from a general obligation bond to a revenue bond program. There was no public hearing at that time. These Resolutions were passed with the obligations. thereunder. would be null that a public hearing should have been 2. provision that the City's and void if the court ruled held. Judge Hedlund ruled that a change in the financing program from a general obligation to a revenue bond program could result in more bonded indebtedness to the City. She said interest could accumulate if no revenue was generated and no interest paid and the bonded indebtedness could exceed the $1.549.000 debt ceiling originally established in the TIF plan. Hedlund ruled that the City should have held a public hearing, and enjoined the City from taking any further action until a public hearing could be held. The two agreements with Trivesco Inc. are therefore null and void. . Froberg said this decision does not affect the 1985 agreement or the original TIF plan. He said that the Council can consider the following modifications at this Public Hearing: -, CITY OF SHOREWOOD REGULAR CITY COUNCIL MEETING MONDAY. FEBRUARY 11. 1991 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 8 . 1. Reductions in the ,public improvements; elimination of . improvements to the frontage road east of the TIF district and elimination of the watermain to Shady Hills. A change in the financing of the debt from a general obligation bond program to a revenue bond program. 2. The City cannot modify the TIF plan to increase the City's debt. THE HEARING WAS OPENED TO THE PUBLIC AT 9:00 P.M. OOSTERMAN - 19365 WATERFORD PLACE Mr. Oosterman said he wanted to speak on broader topics than the modification of the plan and suggested the City consider an overpass for the intersection. JEREMY STEINER - ATTORNEY FOR TRIVESCO. . Steiner said the Council should reaffirm both contracts. He said Trivesco is prepared to go ahead. He disagrees with Judge Hedlund's decision and believes it would be reversed on appeal. but Trivesco does not have time to appeal. He said the Council is free to approve the agreements because proper notice was given for this Public Hearing. tp Steiner said the 1985 agreement with Trivesco is still valid and the City is obligated to develop the intersection at Old Market Road. He also said the City approved the intersection design. layout and preliminary plat for the development which includes the intersection. He said the City is obligated by these approvals. Steiner said the Council should only consider TIF modifications and the bond purchase agreement at tonight's Public Hearing. He said the City must refund $99.000 to Trivesco if the agreements are not signed tonight. )..vY\k!.-~ .;)-;;l5 -'1\ Brancel asked Steiner to limit his comments t~"tw~inutes. Members of the audience were willing to give ~; their time. so they could hear his ideas. Froberg suggested that the Mayor could allow Steiner to speak again after the other residents have commented. P. MALMSTEN - SHADY HILLS Malmsten said it is unfortunate that there cannot be more discussion on the TIF agreement. He asked the Council when the State financing money expires. Brancel said it expires in July of 1991. Nielsen said the 1985 agreement expires in the fall of 1991. Malmsten doesn't want more delay in building the intersection. He said the property will lose it's commercial base when the Vine Hill intersection is built. . . 8 . . . CITY OF SHOREWOOD REGULAR CITY COUNCIL MEETING -MONDAY. FEBRUARY 11. 1991 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE e 1 . Reductions in the public improvements; elimination of improvements to the frontage road east of the TIF district and elimination of the watermain to Shady Hills. A change in the financing of the debt from a general obligation bond program to a revenue bond program. 2. The City cannot modify the TIF plan to increase the City's debt. THE HEARING WAS OPENED TO THE PUBLIC AT 9:00 P.M. OOSTERMAN - 19365 WATER FORD PLACE Mr. Oosterman said he wanted to speak on broader topics than the modification of the plan and suggested the City consider an overpass for the intersection. JEREMY STEINER - ATTORNEY FOR TRIVESCO. Steiner said the Council should reaffirm both contracts. He said Trivesco is prepared to go ahead. He disagrees with Judge Hedlund's decision and believes it would be reversed on appeal. but Trivesco does not have time to appeal. He said the Council is free to approve the agreements because proper notice was given for this Public Hearing. Steiner said the 1985 agreement with Trivesco is still valid and the City is obligated to develop the intersection at Old Market Road. He also said the City approved the intersection design. layout and preliminary plat for the development which includes the intersection. He said the City is obligated by these approvals. Steiner said the Council should only consider TIF modifications and the bond purchase agreement at tonight's Public Hearing. He said the City must refund $99.000 to Trivesco if the agreements are not signed tonight. Brancel asked Steiner to limit his comments to three minutes. Members of the audience were willing to give Steiner their time. so they could hear his ideas. Froberg suggested that the Mayor could allow Steiner to speak again after the other residents have commented. P. MALMSTEN - SHADY HILLS Malmsten said it is unfortunate that there cannot be more discussion on the TIF agreement. He asked the Council when the State financing money expires. Brancel said it expires in July of 1991. Nielsen said the 1985 agreement expires in the fall of 1991. Malmsten doesn't want more delay in building the intersection. He said the property will lose it's commercial base when the Vine Hill intersection is built. 8 CITY OF SHOREWOOD REGULAR CITY COUNCIL MEETING . MONDAY, FEBRUARY 11, 1991 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 9 . JAY HARE - 5670 OLD MARKET ROAD Hare said the TIF plan is no longer justified; it subsidizes the developer and is illegal under the new law. He said the Council has rushed to pass this proposal. If it were not for the TIF plan. this development would not be feasible. He said the City is subsidizing Trivesco by building an intersection that will increase the value of their property. Hare said TIF plans are used for blighted areas. He told the Council they should protect the City and vote against this development. MARY BETH BUCHELE - 20845 RADISSON ROAD Buchele wants the intersection built. She said Radisson Road is receiving a great increase in traffic without the intersection. She said Radisson is a substandard road and cannot handle the increased traffic. Buchele said Radisson Road is dangerous for her children. STUART FINNEY - CHARTWELL HILL . Finney responded to Mr. Steiner's remarks. says nothing about financing. Finney also the intersection may not be available. He used for blighted areas. He said the City cannot afford to lose taxes now. Finney asked the Council to give this plan careful He said the 1985 agreement said State Aid funds for also said TIF projects are thought. S. JORDAN - 20665 RADISSON ROAD Jordan said he has been a resident of Radisson Road for 25 years. He said there has been a 100 fold increase in traffic on the road since the development of Waterford. Jordan said that. in 1985. the residents of Radisson Road were told that the road would not be a thoroughfare. He wants the City to build the intersection, as they promised. BERDAHL - 29105 WATERFORD PLACE Berdahl represents Shorewood Residents for a Safe Neighborhood. He would like to see residents collaborate to build a satisfactory intersection and not delay any further. BOB SNYDER - 19855 CHARTWELL HILL . Snyder said the City has a questionable financial future. There may be State Aid cuts and the Council should use caution in approving any new contracts. They should be able to negotiate better contracts. The current agreements were negotiated by the former Mayor and City Administrator. He said the City's financial consultant. Springstead. Inc.. did not actively participate in the negotiations. He said the 10% interest rate was requested by Trivesco and not negotiated. 9 . . . CITY OF SHOREWOOD REGULAR CITY COUNCIL MEETING MONDAY. FEBRUARY 11. 1991 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 10 The Council should refer this matter to their Financial Advisory Board. GARY SWANSON - 19535 VINE RIDGE ROAD Swanson asked who benefits from the intersection? He said the developer benefits and should finance the intersection. If the City finances the project. a 10% interest rate is high. He thinks the residents should get together to discuss solutions. LES ANDERSON - 5385 SHADY HILLS CIRCLE Anderson said the Council is not hurrying this process, it has been discussed since 1985. The intersection was supposed to take the traffic out of the development. He said there has been much delay and attempts to put off this project. RIC ROSOW - 19835 WATERFORD PLACE Rosow said the refinancing from a general obligation to a revenue bond is acceptable. However, why isn't this bond sold to the public. He said the project is not feasible. Rosow said the Council should be cautious. ALEC JANES - 5630 CHRISTMAS LAKE POINT Janes said he is a 15 year resident of the area. He said in 1985 the residents agreed to the density in the Waterford area in exchange for the intersection at Old Market Road. He said there has been too much delay. ROSE HARRISON - 19890 CHARTWELL Harrison said she is new to the area. However, she said the Council should represent all the people and consider all the issues. The City has made promises to it's residents. JIM FINSTUEN - 19720 SWEETWATER CURVE Finstuen said that financing the public improvements does not make sense. If this is such a good project, why aren't other buyers willing to bid on the bonds. He said there are many other questions that need to be answered. He wanted to see evidence of incremental tax revenue and a firm tax revenue estimate. JOHN W. ASKINS, JR. - 19385 SHADY HILLS ROAD Askins gave his time to Jeremy Steiner. MARK HUGO - 5395 SHADY HILLS CIRCLE Hugo gave his time to Jan Haugen. 10 CITY OF SHOREWOOD REGULAR CITY COUNCIL MEETING MONDAY. FEBRUARY 11, 1991 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 11 . DAVID DEAN - 5690 OLD MARKET ROAD Dean said the Council and residents should not dwell on the past. This is the 4th Public Hearing on the intersection. He said mistakes have been made but the Council should work with the residents to try to implement the project. However. he does not want a project that is not feasible. PATRICE AUBRECHT - 20575 RADISSON ROAD Aubrecht said the City will have a lawsuit if they delay any longer. She said the Waterford residents state they did not know about the planned intersection. She said she knew about the intersection when she moved to Radisson Road 5 years ago. JAN HAUGEN - 4780 LAKEWAY TERRACE- FORMER MAYOR Haugen said the previous City Council tried to make sure the project did not fall on the taxpayers. She said she did ask Springstead for their input. Springstead did say no one else would buy the bonds, but Trivesco was willing to do so. In 1985 the City did not have the money for an intersection and they still do not. She said the TIF plan was one way to finance the project with less risk to the residents. Haugen said any more delays could result in a lawsuit by Trivesco. . JOE LUGOWSKI - 24210 GLEN ROAD Lugowski asked how much Trivesco stands to lose? If a lawsuit results from this project, will this fall back on his taxes? PETER W. DAMISCH - 19705 CHARTWELL HILL Damisch said he believes in the free market system and thinks a 10% interest rate is high. The Council should look at this closely. RON LANGNESS - SPRINGSTEAD INC. Langness said he had been asked by the previous City Council if a 10% interest rate would be available in the open market. He said no it would not but the City should look at the overall proposal. The interest on a revenue bond is paid solelY on the revenue generated from the taxing district. Trivesco needs this development and will be willing to make it work. However, there are no guarantees with this type of approach. The developer takes the risk. RESIDENT asked if this is a junk bond. Langness said that was a poor choice of words. SNYDER . Snyder said the intersection enhances Trivesco's property. If the bond defaults they still have the property with an intersection. 1 1 CITY OF SHOREWOOD REGULAR CITY COUNCIL MEETING MONDAY, FEBRUARY 11, 1991 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 12 . Trivesco can hold on to the property with no risk. He said a 10% interest rate is outrageous. RESIDENT asked if the residents will have to pay if this project is authorized. RESIDENT said if the City defaults would this have an adverse affect on subsequent private transactions. Langness he does not believe it will because the holder of these bonds will not be a disinterested third party. HARE Hare asked who pays for the services. Langness said the City pays for the services until the TIF district is closed. FINNEY Finney asked if the TIF plan has to be used for the highway. Langness said it does not have to. LOUISE BONACHE Bonache asked if the current proposal had been referred to the . Financial Advisory Board. Brancel said she had asked that it be referred to them but it never was. HARRISON Harrison asked if the $920,000 included taxes. Lewis said taxes are not included until the TIF district is closed. RESIDENT asked the relationship of Langness and Springstead to the City. Langness said his firm has advised the City on financial matters and has no other relationship. DAMISCH Damisch asked if Langness had helped negotiate the interest rate and should the City reconsider this rate. Langness said there is no more security offered than previously. HARE asked if the TIF plan would be allowed now. Langness said no it would not. . RESIDENT asked what Langness recommends. He said it is a good agreement for the City. It keeps the interest payments off the tax rolls. 1:? CITY OF SHOREWOOD REGULAR CITY COUNCIL MEETING MONDAY, FEBRUARY 11, 1991 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 13 . THE PUBLIC PORTION OF THE PUBLIC HEARING WAS CLOSED AT 10:20 P.M. JEREMY STEINER . Steiner said the TIF plan is the only feasible way to finance this project. If the property is not developed with commercial property the City will be losing tax money for decades. He said there will be litigation if this is not approved. A decision must be made. RESIDENT asked if Trivesco could provide the $216,000 for the intersection if the State doesn't. Steiner said the project is already risky and they will not provide the $216,000. RESIDENT asked why the City owes Trivesco $99,000. Brancel said Trivesco gave the City a check for $99,000 and it will have to be returned. Sherman-Boosalis owes the City $53,000. RESIDENT asked if Trivesco could do this project on their own. Steiner said it would be hard to borrow the money. Steiner said they have confidence in the project. Brancel said the TIF plan should go to the Finance Committee for review. l\me'J ~_ '}.6 -4' Lewis said Trivesco will not pay for the intersection and if State is not available, the City will pay for the intersection. He said frontage road and watermain projects have been eliminated in this project. He said the Financial Advisory Board should review the proposa I . Aid. the Daugherty said he appreciates the comments from residents. He thinks the negotiations were done hastily. He wants the Finance Committee to review all the factors in the proposal to see if it makes sense. Gagne disagreed. If there is a delay the project will have to be done as a general obligation and all the residents will pay. He said the previous Council tried to make the project fair for all residents. The road will go in but it will be on the tax roles. Lewis said the question of a lawsuit doesn't apply. He wants to look at the costs and not rubber stamp the plan. Gagne said delays will kill the plan. Lewis said someone will have to pay for this project; not all strip malls are successful and it is far fetched to expect this one to be successful. . The TIF plan expires June 1 , if there is no contract with a developer. Engineer Dresel said it will take 3 months to prepare plans and specs. . j~ ,.;:. CITY OF SHOREWOOD REGULAR CITY COUNCIL MEETING . MONDAY, FEBRUARY 11, 1991 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 13 ~ THE PUBLIC PORTION OF THE PUBLIC HEARING WAS CLOSED AT 10:20 P.M. JEREMY STEINER Steiner said the TIF plan is the only feasible way to finance this project. If the property is not developed with commercial property the City will be losing tax money for decades. He said there will be litigation if this is not approved. A decision must be made. RESIDENT asked if Trivesco could provide the $216,000 for the intersection if the State doesn't. Steiner said the project is already risky and they will not provide the $216,000. RESIDENT asked why the City owes Trivesco $99,000. Brancel said Trivesco gave the City a check for $99,000 and it will have to be returned. Sherman-Boosalis owes the City $53,000. RESIDENT asked if Trivesco could do this project on their own. Steiner said it would be hard to borrow the money. Steiner said they have confidence in the project. . Brancel said the TIF plan should go to the Finance Committee for review. Lewis said Trivesco will not pay for the intersection and if State Aid is not available, the City will pay for the intersection. He said the frontage road to Vine Hill and watermain extension have been eliminated from the bond contract. These are costs the City will have to pay to complete this project. The State aid money of $216,000 has been deducted from the total cost of the bond contract without guarantees from the developer to include this amount in the event the State reduces the aid commitments. If the State does reduce the $216,000 commitment, the City will absorb the cost difference of that reduction in this proposed bond contract. He said the Financial Advisory Board should review the proposal. Daugherty said he appreciates the comments from residents. He thinks the negotiations were done hastily. He wants the Finance Committee to review all the factors in the proposal to see if it makes sense. Gagne disagreed. If there is a delay the project will have to be done as a general obligation and all the residents will pay. He said the previous Council tried to make the project fair for all residents. The road will go in but it will be on the tax roles. Lewis said the question of a lawsuit doesn't apply. He wants to look at the costs and not rubber stamp the plan. . Gagne said delays will kill the plan. 17 .~ . . . CITY OF SHOREWOOD REGULAR CITY COUNCIL MEETING . MONDAY, FEBRUARY ii, 1991 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 14 Daugherty moved, Lewis seconded to defer consideration of the modifications and refer the TIF agreement and bond purchase agreement with Trivesco to the Financial Advisory Board for review and recommendations on February 25, 1991. Motion carried - 3/1 (Gagne) ADJOURNMENT SUBJECT TO THE PAYMENT OF CLAIMS Daugherty moved, Gagne seconded, to adjourn the meeting to Wednesday night at 7:30 P. M. to consider the applicants for the Administrator's position, subject to the payment of claims. Motion carried - 4/0 GENERAL AND LIQUOR FUNDS - ACCOUNT NUMBER 00-00166-02 Checks issued since January 31, 1991 LIQUOR $ 29,835.60 TOTAL CHECKS ISSUED GENERAL $ 15.209.16 $ 45.044.76 Checks for Council approval Checks No. 6157-6212 TOTAL CHECKS FOR APPROVAL $ 45,640.07 TOTAL CHECK APPROVAL LIST $ 90,684.83 CHECK REGISTER FOR JANUARY 31. 1991 PAYROLL Checks no. 204847/204844 LIQUOR $3,154.02 GENERAL $16.563.42 TOTAL CHECKS ISSUED $19,717.44 14 . . . CITY OF SHOREWOOD REGULAR CITY COUNCIL MEETING MONDAY, FEBRUARY 11, 1991 RESPECTFULLY SUBMITTED Katie Snyder Recording Secretary NIELSEN 15 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 15