Minutes of the Swanville City Council meeting held in the Swanville Center on Tuesday, October 4, 2016. The meeting called to order 7:00 p.m. with the following members present: Sandy Lange, Norm Carlson, Tony Maciej, Jay Bartkowicz, and Jim Molitor. Also present: Jon Jungers representing Rotomolding, Jason Murray from David Drown Associates, Carol Anderson from Community Development of Morrison County, Mark Hallen, Bruce Johnson, Lonny Hutchins and reporter Sheila McCoy.
Minutes of the Swanville City Council meeting held Tuesday, September 6, 2016 were reviewed. A motion was made by Jim Molitor to approve the minutes as printed. Jay Bartkowicz seconded the motion. All members voted in favor, motion carried.
The treasures report was given. A motion was made by Jay Bartkowicz and seconded by Norm Carlson to approve the treasurer’s report. All members voted in favor, motion carried.
Mayor Lange presented to the council resolution #161004:
Norm Carlson made a motion to adopt resolution #161004 Approving the Modification of Municipal Development District No. 1,
Modification of the Development Program Relating Thereto;
The Establishment of Tax Increment Financing District No. 1-6 Within Municipal Development District No. 1 And Adoption of the Tax Increment Financing Plan Relating Thereto.
Whereas:
A. It has been proposed that the City of Swanville, Minnesota (the “City”), modify Municipal Development District No. 1 and a Development Program relating thereto and create Tax Increment Financing District No. 1-6 within Municipal Development District No. 1 and adopt a tax increment financing plan with respect thereto, under the provisions of Minnesota Statutes, Sections 469.124 to 469.134 and 469.174 to 469.1794 (collectively, the “Act”); and
B. The City of Swanville has investigated the facts and has caused to be prepared a modification of the development program for Development District No. 1 and a tax increment financing plan for Tax Increment Financing District No. 1-6; and
C. The City has performed all actions required by law to be performed prior to the modification of Development District No. 1, modification of the Development Program relating thereto, creation of Tax Increment Financing District No. 1-6 within Municipal Development District No. 1 and the adoption of the tax increment financing plan relating thereto, including, but not limited to, notification of Morrison County and the Swanville Public School District having taxing jurisdiction over the property to be included in Tax Increment Financing District No. 1-6, and the holding of a public hearing upon published and required notice as required by law.
Now, Therefore, Be It Resolved by the City Council of the City of Swanville as follows:
1. Municipal Development District No. 1 and Tax Increment Financing District No. 1-6 within Municipal Development District No. 1. The City hereby approves the modification of Municipal Development District No. 1 and of the Development Plan relating thereto, and the establishment of Tax Increment Financing District No. 1-6 within Municipal Development District No. 1, the boundaries of which are fixed and determined as described in the Tax Increment Financing Plan.
2. Tax Increment Financing Plan. The Tax Increment Financing Plan is adopted as the tax increment financing plan for Tax Increment Financing District No. 1-6, and the City Council makes the following findings;
(a) Tax Increment Financing District No. 1-6 is an economic development district as defined in Minnesota Statutes, Section 469.174, Subd. 12.
The reasons and facts supporting this finding are that the proposed development described in this TIF Plan meets all of the criteria listed in Sections 12, 17 and 18 of the Plan.
(b) The proposed development in the opinion of the City Council, would not occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of Tax Increment Financing District No. 1-6 permitted by the Tax Increment Financing Plan.
The reasons and supporting facts for this finding are that the developer has indicated that without use of tax increment financing the project(s) could not proceed.
The Authority also finds that due to the amount of time the site(s) have sat in their current condition, the Authority finds no reason for additional development to occur without TIF assistance. Therefore, the Authority reasonably believes that the expected increase in market value at this site without TIF assistance would be minimal. A comparative analysis of estimated market values both with and without establishment of the TIF District and the use of tax increments has been performed. The property has had limited economic activity over the past five years, so we are projecting a small rate of 1%. Such analysis indicates that:
1. The increase in estimated market value of the proposed developments is $2,000,000;
2. The present value of expected tax increments collected over the maximum duration of the TIF District is $324,931
3. The expected increased estimated market value of the site without use of tax increment is $30,708; and
4. Even if some development other than the proposed development were to occur, the City Council finds that no alternative would occur that would produce a market value increase greater than $1,675,069 (the amount in line 1 less the amount in line 2) without tax increment assistance.
(c) The Tax Increment Financing Plan for Tax Increment Financing District No. 1-6 conforms to the general plan for development or redevelopment of the City of Swanville as a whole.
The reasons and facts supporting this finding are that the current zoning of the property provides for commercial development as a permitted use, and rezoning will not be required.
(d) The Tax Increment Financing Plan will afford maximum opportunity, consistent with the sound needs of the City of Swanville as a whole, for the development or redevelopment of Tax Increment Financing District No. 1-6 by private enterprise.
The reasons and facts supporting this finding are that the development activities are necessary so that development and redevelopment by private enterprise can occur within the Development District.
3. Public Purpose. The adoption of the modified Development District and Tax Increment Financing Plan conforms in all respects to the requirements of the Act and will help fulfill a need to develop an area of the City which is already built up to provide employment opportunities to improve the tax base, and to improve the general economy of the State and thereby serves a public purpose.
4. Authorization of Interfund Loan. The City hereby authorizes internal funding in a principal amount equal to all Project costs listed in the TIF Budget ($415,522). Funds will be provided from the General Fund, repaid over the term of the TIF District, and include interest at a fixed rate of 4.0%. (This interest rate is the greater of the rates specified under Minnesota Statutes 270C.40 and 549.09.)
5. Certification. The Auditor of Morrison County is requested to certify the original net tax capacity of Tax Increment Financing District No. 1-6 as described in the Tax Increment Financing Plan, and to certify in each year thereafter the amount by which the original net tax capacity has increased or decreased in accordance with the Act; and the City Clerk-Treasurer is authorized and directed to forthwith transmit this request to the County Auditor in such form and content as the Auditor may specify, together with a list of all properties within Tax Increment District No. 1-6 for which building permits have been issued during the 18 months immediately preceding the adoption of this Resolution.
6. Filing. The City Clerk-Treasurer is further authorized and directed to file a copy of the amended Development Program and the Tax Increment Financing Plan with the Commissioner of Revenue and Office of the State Auditor.
The motion for the adoption of the foregoing resolution was duly seconded by member Jay Bartkowicz and upon vote being taken thereon, the following voted in favor thereof: Mayor Lange, Jim Molitor, Tony Maciej, Norm Carlson, and Jay Bartkowicz; the following voted against the same: none.
Whereupon said resolution was declared duly passed and adopted.
Jason Murray then presented the council with the Development Agreement with Rotomolding Inc. After discussion, Jim Molitor made a motion to accept the terms of the assistance agreement for this project. Norm Carlson seconded the motion. All members voted in favor, motion carried.
Mayor Lange has visited with Kevin Festler on surveying the land on the corner of Springbrook Drive and First Street (County Road 102). Lange stated that to survey the rezoned lot would cost $2,200.00. To have the land to the north of the rezoned land surveyed with the rezoned land would be $3,500.00. Jim Molitor made a motion to have Festler survey the entire section of land from the corner of First Street and Springbrook Drive north. Tony Maciej seconded the motion. All members voted in favor, motion carried. Having the additional land of approx. 375’x300’ north of the rezoned lot would be a beneficial area to sell lots to put houses on. Since this section is considered commercial the council plans to rezone it to residential. A public hearing is set for Thursday, November 3, 2016 at 6:30 p.m. in the Swanville Center to hear public input.
The newly rezoned area needs to be named. After discussion, it was decided to have the area be named as the Berkey Addition and the road going through the middle of the land will be called Berkey Avenue North.
Council asked Mark Hallen, city engineer, to have for the next council meeting, a cost estimate to put in a new road and to bring water and sewer into the new addition. A TIF District would be set up for this project. Hallen informed council that there will not be grant funding for this project because of a vacancy documentation not available through Morrison and Todd Counties, which is needed to complete the grant application.
After looking at the delinquent utility report council decided that water turnoffs will occur on Mondays or Tuesdays and any account over 90 days payments must be made in cash, credit card or money order. No personal checks will be accepted on overdue accounts when water is turned off.
The Swanville Lions Club would like to have a large screen TV put into the park building. The Lions would pay for monthly satellite service. The TV could be used by building renters, training for 1st responders, fire department and other organizations. Jim Molitor made a motion to purchase the TV, Jay Bartkowicz seconded the motion. All members voted in favor, motion carried.
Alvin Giese is requesting a land use permit to put in a outside wood burner. P & Z has looked over the application and approved the burner. Tony Maciej made a motion to approve the land use permit for Giese. Jay Bartkowicz seconded the motion. All members voted in favor, motion carried.
Bruce Johnson, representing Swanville Lions Club, reported that during the Swanville Carnival the Lions would like to have hard liquor next to the beer garden. Red’s Irish Pub would have a stand on the grounds and provide its own workers. The Clerk has checked with the State of MN and it is alright for the Pub to sell hard liquor using the Pub’s license on the Carnival grounds because of it being a city event. With that information council did not see a problem with the sell of hard liquor during the Carnival.
Council decided to change the November monthly meeting to Thursday, November 3, 2016 being Election Day falling on Tuesday, November 8. A public hearing will take place at 6:30 p.m. followed by the regular monthly meeting.
The following claims were presented for payment. Members of the council were furnished with a listing. Jim Molitor made a motion to approve the claims. Tony Maciej seconded the motion. All members voted in favor, motion carried.
A Public Hearing will take place at 6:30 p.m. on November 3, 2016, to discuss a rezoning of the land to the north of the corner lot on Springbrook Drive and First Street. The next regular monthly meeting will be held following the public hearing.
There being no further business, a motion was made by Jay Bartkowicz and seconded by Jim Molitor to adjourn. All members voted in favor, motion carried. Meeting adjourned 7:40 p.m.
Julie Hollermann, City Clerk/Treasurer