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Chatfield EDA and City Council hold joint meeting

Fri, Mar 28th, 2014
Posted in Chatfield Government

In order to establish tax increment financing district (TIF) No. 2-5 the two bodies met together at the city council’s March 24 meeting. A public hearing was held on the modification of the municipal development district No. 2. No. 2-5 notes the second underlying document and the 5th district on the Olmsted County side of the city.

EDA members present included Michael Tuohy, Sue Keefe, Randy Paulson, and Molly Baum. Councilors Paul Novotny and Mike Urban serve with the EDA.

Mike Bubany, David Drown and Associates, explained that in the Olmsted County portion of Chatfield the EDA created the redevelopment project area and it is actually an EDA TIF District. The redevelopment TIF District is being established to reimburse the developer for added project costs, specifically the building of a retaining wall needed to make the site “developable.”

The Twiford area redevelopment property value will be froze as it is valued today with the homes and land value. Ninety percent of the property tax increase between the current value and the improved value due to the development will be reimbursed annually to the developer over the life of the TIF District, 15 years.

Bubany explained the difference in the city’s tax rate due to the TIF will be less than a point, adding the reimbursement is “significant to the developer, but not big bucks to the city.” If the property was not developed, the market value of the property would only increase due to normal inflation.

Chris Giesen, Community Development Coordinator, said the formal development agreement with Family Dollar had not been drafted yet. A purchase agreement contingent on the development agreement has the EDA selling the property for $210,000. A retail store of eighty-three hundred square feet is to be developed.

The city has received $233,000 from the State of Minnesota to offset some of the city’s infrastructure costs associated with the development. The company is to be assessed over 10 years the net remaining costs for infrastructure.

The TIF increment is for site improvements. The development of the Twiford area will be paid for by the developer, the state grant, and the TIF.

The EDA approved a resolution adopting the Modification of Redevelopment Project Area No. 2 and the Redevelopment Plan and the establishment of the TIF District 2-5 and TIF financing plan.

The city council then adopted a resolution approving the Modification of Redevelopment Project Area No. 2, the adoption of the Redevelopment Plan, and approved the creation of TIF District 2-5 and TIF financing plan.

2014 Street and Utility Improvements

At this public hearing City Engineer Dillon Dombrovski, WSB and Associates, reviewed the 2014 improvement projects including St. Albans Place (Fillmore County Road 119 to 400 feet beyond the south property line of the EZ Fab property), Twiford Street (Division Street to Grove Street), Bench Street (1st Street to 6th Street SW), and West Chatfield. Work on these projects is planned to occur primarily in 2014.

Construction is expected to start after Memorial Day. An assessment hearing will be held in the fall.

The total cost of the projects is estimated to be $1.9 million. Special assessments will pay for about $310,000 and utility related costs are $590,000. Street reconstruction eligible costs are $1 million.

Members of the public asked specific questions related to their properties.

Another public hearing was held on the street reconstruction plan. Mike Bubany noted there is a 30 day petition period during which a vote could be requested on the question of issuing bonds. He detailed the plans to finance the projects. Over $1.5 million will be financed.

Bubany said that based on estimates up to $1 million of General Obligation Reconstruction Bonds would be sufficient. This issuance of new G.O. Street Reconstruction Plan bonds is within the city’s net debt limit. The balance will be financed with G.O. improvement or utility bonds.

The council unanimously adopted resolutions approving the street reconstruction plans and ordering the improvements and authorizing the preparation of plans and specifications.

Other business in brief

•City water superintendent Brian Burkholder explained the work that went into being nominated for the Wellhead Protection Program award from the Minnesota Department of Health. Chatfield started in the wellhead program in 2007. The plan to protect drinking water included sealing seven unused wells in the city of Chatfield. One goal is to educate the public about preserving safe drinking water. Grants were applied for and received from the state in 2013 for a cost share program to seal wells. Chatfield was one of three cities to receive the award. Young noted there are 853 cities in the state.

•A request from Nancy and Dale Timm (Cliff Street and Avenue C) to combine their two parcels into one (150 foot x 150 foot lot) was approved.

•Studio 223 had requested to allow parking on Main Street to begin at 5 a.m. instead of 6 a.m. City Clerk Joel Young noted a couple of businesses (also Jackie’s Fitness) attract customers to the downtown area at this earlier hour. Public works crews would have to begin an hour earlier when snow removal is needed. Tony Lammers said the earlier time would not be a problem.

•It was decided to make all the signs consistent in the downtown area (including side streets) and change them all so parking will be prohibited from 2 a.m. to 5 a.m.

•Approval was given to purchase a half ton Chevrolet pick-up truck to be used at the wastewater treatment plant. The truck will be purchased at the state bid price for $25,520. Young said pick-up trucks are kept for 15 years.

•Approval was given to hire Mitch Irish for summer help and to advertise for one more. Lammers requested the hire of an additional part time person to work from early spring into late fall. The council authorized the Public Works committee to advertise for the additional help.

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