During the October 28 Chatfield City Council meeting, a joint meeting was held with the EDA to consider the creation of a tax increment financing (TIF) district for the “Gjere Addition”.
EDA chair Mike Tuohy called the EDA meeting to order before the public hearing began.
During the public hearing Chris Giesen explained that Mike and Julie Sogla purchased about 10 acres along Division St. NW and Mill Creek Rd. NW. Their proposal is to develop the property for residential single family homes. In order to do the proposed development, improvements will need to be made to Division St. NW.
The project aims to produce homes for moderate income buyers. TIF assistance will help make the development feasible for these buyers by holding down project costs.
Mike Bubany, David Drown Associates, noted the Housing TIF is long term, a maximum of 26 years. The project will include up to 27 single family residential lots developed in two phases. Homes will be for sale only, no rental. The first phase is for nine units (five next year and four in 2021) and the second phase could produce an additional 18 units.
Bubany said the total budget can not exceed $3.35 million. The city will retain 10% for administration. The additional homes will increase the overall tax capacity for the city. The expected tax value of the homes is $250,000 per home.
Giesen stated that we are not looking to approve assistance tonight, just looking to set up TIF district 2-7. The development agreement is not ready at this time for consideration. Because this property is in the Olmsted County part of the city, the EDA has final approval authority.
There was no comment from the public. The EDA unanimously adopted a resolution approving the establishment of TIF district 2-7 within redevelopment project area number 2. The city council unanimously adopted a resolution of support for this TIF district. The EDA meeting was adjourned.
Municipal Development District 3 Amendment
In September 2018 a financial assistance package for the creation of income qualified housing along Amco Dr. SE was approved. Grants in the amount of $10,000 to the developer for each home sold to a qualified buyer was approved. Giesen noted the development district will have to be enlarged to include Amco Dr.
A public hearing was held on a proposed modification of Municipal Development District 3. The modification amends the boundaries of the development district to the boundaries of the city limits on the Fillmore County side. This will allow for the inclusion of the Amco projects. It will include all the city area within Fillmore County. There was no comment from the public.
A resolution was adopted to amend Municipal Development District 3 as presented.
Other business in brief
•The transfer to the city of the George A. Haven Wall was finalized. In July 2018 a proposal from Frederick and Deborah Gerlach to donate the property containing the wall to the city for preservation and maintenance was approved by the city council. All conditions for the proposal have now been satisfied. The wall took 37 years to build.
•A snow removal agreement with MnDOT for Highway 52 within the city was approved.
•The second consideration and publication of Ordinance 445, Alley Vacation, were approved. This concerns the alley near Hawley St. (between Hawley St. and Seventh St.).
•Brian Burkholder announced street sweeping and leaf pick-up will begin.
•Approval was given for a payment of about $20,600 to Southeast Mechanical, Inc. for the installation of 36 water meters at Chatfield Mobile Village.
•Mayor Russ Smith reported on the Committee of the Whole meeting that took place before this day’s council meeting. Mike Bubany gave a presentation updating the Capital Improvement Finance program. Smith said the program makes it easy to see what we do now will affect the budget over the next 30 years.
•Mayor Smith commented on his letter to the editor, which was published last week. He insisted we can provide answers to questions from the public. He said he wished people would call when they have questions.
He felt it was important to respond to inaccurate information that was out there. He was referring to a recent letter to the editor about a proposed veterans memorial. Smith insisted we did not turn down a veterans memorial. The proposed location of the project and the lack of a cohesive effort were factors that caused details to never be finalized. He said he went back and looked at the archived recording of the city council meeting when it was discussed.
He concluded saying it was healthy to question leadership and again recommended contacting city council members if you have questions.
Councilor Paul Novotny commented that letters to the editor make me reconsider and look at things. He referred to the last letter to the editor about the veterans memorial. A memorial would not really have fit into the proposed location; it would have been necessary to move the cannon (City Park). Nothing ever happened, but we were not against the memorial.
•The presidential primary will be on March 3.
•The next regular meeting will be held on Tuesday, November 12; November 11 is Veterans Day.