At the April 25 meeting of the Chatfield City Council, a public hearing was held prior to the adoption of a tax increment financing plan for TIF district 3-5. The new TIF district is requested in part due to rising construction costs for site improvements for a new athletic club. It is to be located on vacant property along Highway 52 south of Chatfield. Plans include the installation of a new city sidewalk/trail on the property.
Jill Harstad and Lindsay Eide have requested the TIF assistance. They will be the owners of Fifty-Two Fitness, an approximately 8,000 square foot facility.
EDA Director Chris Giesen said the EDA recommends going forward with the creation of the TIF district. Mike Bubany, David Drown Associates, explained the assistance requested is a tool using property taxes to redirect and put funds back into the project. The impact to the city is nil. New taxes associated with the project will be captured. The assistance is on a pay as you go basis; a portion of the property taxes collected are reimbursed. The interest rate is 4%.
The value of the TIF assistance will be up to $140,000 plus interest over nine years. The fitness facility project is expected to create about $750,000 of new tax base. The estimated project cost is about $1 million. The final payment will be no later than February 1, 2033.
Bubany made it clear that there is no financial risk to the city. No revenue is lost; the city just foregoes some future revenue for up to nine years.
There were no comments from the public or councilors. A resolution was unanimously adopted establishing TIF district 3-5 and the adoption of the TIF plan.
A resolution was also adopted authorizing the execution of the development agreement with Fifty-Two Fitness Corp.
2022 Water System and Drainage Improvement Projects
City Engineer Craig Britton reviewed bids for stormwater improvement projects, which mostly came in significantly over engineer’s estimates and over budget. In order to remain within budget, the Public Works committee has recommended rejecting all bids for the concrete tank; then, going out for quotes for essential repairs. A motion was approved to reject all three bids for the concrete tank rehabilitation. The scope of this project will be reduced to sealing any cracks in the tank for now and then planning for the eventual replacement of the tank in the next five years.
Three contractors submitted quotes for the drainage improvement projects. The low quotes from Pearson Backhoe for two drainage improvement projects, including stormwater drainage improvements in West Chatfield ($105,995) and the area along Bench St. from Sixth St. to Seventh St. ($92,133.50), were accepted.
The council approved quotes for well 2 pump house addition and south reservoir electrical improvement projects. The quotes accepted included one from Huntington Electric in the amount of $6,505.38 for electrical work, one from Brian Lee Construction in the amount of $11,170 for the installation of the roof, doors and windows, and one from Keller Masonry in the amount of $3,916.05 for masonry and foundation work.
Two bids were received for water system electrical improvements. The lowest bid from Killmer Electric Company Inc. was accepted in the amount of $529,450.
Several bids were submitted for steel tank rehabilitation for the south reservoir. The Public Works committee recommended approving the lowest bid submitted by Osseo Construction Co. LLC in the amount of $474,000. The total cost of all the water system and drainage projects is roughly $1.35 million.
Preliminary Development Plan for Three Story Apartment Building
A public hearing had been held at an April 20 Planning Commission meeting on the proposal for a 63-unit apartment building from Keller Baartman Properties, LLC. The property for the building is located on the south half of the block between First St. SW and Second St. SW and northeast of Twiford St. SW (former Peoples Cooperative Energy site).
Understory parking is planned with the entrance and exit from Second St. SW. Staff recommended approval of the Planned Unit Development and the conditional use permit with 14 conditions.
Councilor Paul Novotny was concerned about #7 of the listed conditions, which includes approval required by the city Public Works Department to best determine “any locations and modifications to on-street public parking.” He said parking is tight in the downtown area already. He questioned whether the Public Works committee should work on condition #7. He said he was okay with going forward with the preliminary plan recognizing that parking is an issue. A motion was approved to move forward approving the Preliminary Development Plan as recommended by the Planning Commission with the recognition that parking issues will have to be solved before the Final Plan can be approved.
Other business in brief
•Approval was given for the quote from Southeast Mechanical in the amount of $11,625 to replace an HVAC unit on the Thurber Building.
•Brian Burkholder said he had reached out to three contractors for sidewalk removals and replacements. The low quote from Dan Ramaker Concrete at $9 per square foot with a 400 square foot minimum was approved.
•Burkholder requested and received approval for the 2022 chip-sealing project plan in the amount of $21,287. Areas to work on included the older portion of Hillside Dr. and a section of Enterprise Dr.
•Mayor Russ Smith read the Arbor Day Proclamation, proclaiming Friday, April 29, 2022, as Arbor Day.
•Approval was given for the use of City Park for the Growers & Makers Market, Yoga, and live music on Thursdays from June 9 through July 28.
•Councilors David Frank and Pam Bluhm reported on the Public Services committee. Discussion centered on the option of moving to the use of garbage cans/carts or staying with bags for garbage pick-up.
•Police chief Shane Fox was presented a Certificate of Appreciation for his 25 years of service to the city of Chatfield.
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