CITY OF ZUMBROTA CITY COUNCIL MINUTES
REGULAR MEETING JUNE 19, 2003 6:00 P.M. TOWN HALL
Pursuant to due call and notice thereof, Mayor Rich Bauer called the Zumbrota City Council to order at 6:00 p.m. PRESENT: Mayor Bauer; Councilmembers David Benson, Doug Borgschatz, Betty Jo Grothe, Deb Wilkinson. Others present: City Accountant Mary Rohe, Community Development Director Tricia Hinckley, Public Works Director Rick Lohmann, City Attorney Matt Rockne, Reporter Sandy Hadler, David Grimsrud, John Anderson, Matt Anderson, Don Lochner, Jim Syverson, Brad Grover, Jim Wedge, Dale Hinderaker, Janet Anfinson, Duane Anfinson, Lance Isenberg, Sharon Isenberg.
The meeting opened with the Pledge of Allegiance.
It was suggested to add item 6c- Golf Course Association- update of project.
1. 6:30 p.m.- Mayor Bauer opened the public hearing to consider the Grover Auto Property Tax Abatement request. Tricia Hinckley, Community Development Director, reviewed many of the items from the May 15 meeting, when the public hearing date was established. She explained that the current Grover Auto site contributes to traffic congestion, potential environmental hazards, and what some would call “blight”. The Zumbrota EDA is pursuing a redevelopment plan that would include a mixed use structure, potentially with commercial office space, retail space, and/or food service on the main level and two or three levels of market-rate housing. A Contamination Investigation Grant from the State of MN is being used to begin the redevelopment process. If the EDA wishes to pursue this plan and acquire the property, the EDA needs to compensate Grover Auto for the equity in their property so that they can move forward with their relocation near TH 52. The relocation project will be a private investment of $2.2 million, and the redevelopment project could result in an additional $3.5 million of investment, with total tax revenues for both projects reaching $150,000 ($53,800 being the city portion). The abatement dollars would come from the new tax revenues generated at the new Grover Auto site. Grovers would then donate their existing bldg & lot, new truck lot (without the Scharf building), and new car lot to the EDA, which would in turn provide $400,000 up-front money to Grover Auto to compensate them for the lost equity in releasing those assets (based on a Commercial Appraisal completed in 2002). The up-front contribution could be financed by a Tax Revenue Bond of $400,000. The Zumbrota EDA is requesting that the Zumbrota City Council agree to abate the taxes on the new Grover Auto site and building(s) for a period of ten years, beginning January 1, 2004 and ending December 31, 2013. Ms. Hinckley reiterated that Grover Auto be responsible for any clean-up costs at the downtown location that are not covered by grants or federal program reimbursements. Hinckley stated that before the money would be released, an executed development agreement would need to be in place. Councilmember Benson expressed concern that $400,000 was too much, and that the city should not get into the real estate business. Mayor Bauer closed the public hearing at 6:45 p.m.
Motion Grothe, second Borgschatz to adopt Resolution 2003-15, a Resolution Approving the Abatement of Taxes for Economic Development Purposes. Carried 4-1-0 (Benson opposed).
1. There was nothing to report regarding the St. Paul Road Public Improvements Feasibility Study.
2. John Anderson, Zumbrota Golf Club representative, was present to update Council on the club's fund raising efforts. He informed Council that the Zumbrota Telephone Co. will match all donations over the $200,000 fund-raising level up to $50,000. They will likely have the necessary level of contributions within the next 30 days. Matt Anderson questioned the timing of the balance of the project. Tricia Hinckley explained that although grading of non-wetland areas can occur without city approval, the preliminary plat approval process could take a minimum of 6 to 8 weeks. In addition, other approvals must be received (e.g. storm water management and wetlands) before construction can commence.
1. Barb Budensiek, 300 East 3rd Street, submitted an application for a Minor Subdivision The request is to split one lot into two lots, creating one new buildable lot. There are no special exceptions or variances being requested, and all zoning requirements are met by the subdivision. The property has been surveyed.
Motion Benson, second Borgschatz to approve the Barb Budensiek application for a Minor Subdivision at 300 East 3rd Street, to create an additional building lot. Carried
2. The Zumbrota Economic Development Authority recently received a request from the Zumbrota Community Foundation to purchase the house located at 257 W 4th Street (directly east of the Bridges Apartments. Proceeds will be used for operations of the Zumbrota Nursing Home while a new owner is being sought. The EDA subsequently recommended that Council consider purchasing the house for $80,000 with the intent to immediately begin marketing the property for sale and that any proceeds for the sale be given back to the Zumbrota Community Foundation, less any holding or closing costs associated with the purchase, holding and/or sale of said property.
Motion Wilkinson, second Grothe to purchase the house located at 257 W 4th Street from the Zumbrota Community Foundation for $80,000 with the intent to re-sell the property, first option to purchase to be given to the new owner of the Bridges Apartments, and that any proceeds for the sale, above the purchase price of $80,000 be given back to the Zumbrota Community Foundation, less any holding or closing costs associated with the purchase, holding and/or sale of said property. Carried 5-0-0.
-City Accountant Mary Rohe-
-Suggested that the action taken by the Library Board related to benefits to Library Director Jeannie Johnson and Library Assistant Flora Burfeind be officially accepted. The Board stated that, due to budget cuts, if the hours of Ms. Johnson and Ms. Burfeind are cut to less than 30 hours per week, that 1) health benefits to these two employees be kept at their current 75% (of full-time) level for the next two years, 2) sick leave be kept at its current level, 3) vacation leave continues at its current rate, the hours per week adjusted to hours worked.
Motion Grothe, second Benson to approve the following (due to budget cuts) related to benefits to Library Director Jeannie Johnson and Library Assistant Flora Burfeind): 1) health benefits to these two employees be kept at their current 75% (of full-time) level for the next two years, 2) sick leave be kept at its current level, 3) vacation leave continues at its current rate, the hours per week adjusted to hours worked. Carried 5-0-0.
-Community Development Director Tricia Hinckley-
-Informed Council that the EDA accepted her resignation effective August 29.
-Mayor Rich Bauer-
-Stated that Councilmember Benson, Administrator Johnson and he would be meeting with Zumbrota Township and Pine Island Township to discuss the Zumbro Woodlands to Trelstad Addition water main project.
-Informed Council that three bids were received for the nursing home and/or other buildings formerly in the custody of Zumbrota Healthcare. It is believed that one favorable bid included the offer to purchase all 4 buildings.
Mayor Bauer adjourned the meeting at 7:03 p.m.
Ronald S. Johnson, City Administrator