Agreements were presented for consideration at the Chatfield City Council’s October 8 meeting related to future housing development and the expansion of EZ Fabricating, Inc.
Planning and Zoning Administrator Kristi Clarke reviewed information concerning plats and development agreements for single family home lots on properties owned by Geoffery and Monica Griffin. The council approved the preliminary plat for Hilltop Estates III as recommended by Planning and Zoning.
A public hearing concerning Hilltop Estates III Final Plat was held. There was no comment from the public.
The preliminary and final plat are acceptable to MnDOT. Final construction documents have been commented on and reviewed by the city engineer.
The 2.28-acre property is located south of Wisdom Lane SE. The proposal is to subdivide the property into six single family lots and to extend Wisdom Lane.
The property is zoned R-1 (single family residential).
The council approved the final plat as recommended by staff. The Hilltop Estates Development Agreement was approved.
A second public hearing was held concerning the Amco Subdivision Final Plat. It is acceptable to MnDOT. The city engineer comments are attached to the report. Clarke explained the original preliminary plat has been put back into place. This 3.67-acre property is along Amco and Vindmoll Drives. The proposal is to establish 13 single family home lots on the property. It is zoned R-1.
During this public hearing Mark McBroom asked about Outlot C. He was concerned about the possibility of a mini-house being built behind his house. City Clerk Joel Young explained the city owns that lot and a large percentage of the lot is encumbered with easements. Clarke said the lot would not likely be developed because of the easements.
The final plat was approved as recommended by staff. Clarke said the Amco Subdivision Development Agreement was amended from the original agreement. The agreement was approved.
EZ Fabricating, Inc. is planning a 10,000-square-foot expansion. They are requesting two loans. EDA Director Chris Giesen explained with this expansion it is expected they will hire at least 17 new full-time employees making an average of more than $19 per hour.
EZ Fabricating has requested the submission of an application for a Minnesota Investment Fund (MIF) program loan in the amount of $375,000 and an EDA loan in the amount of $25,000. There was no comment from the public during a public hearing. A resolution of support was adopted providing authorization to submit an application for a MIF loan through Minnesota Employment and Economic Development (DEED). The funds will come to the city and then be loaned to EZ Fabricating in the form of an EDA loan.
Because the total $400,000 loan is greater than $150,000 it is considered a business subsidy. A second public hearing was held with no comment from the public. A resolution granting the business subsidy in the amount of $400,000 was approved.
If terms are met, the state will forgive $175,000 after two years and has given the city the option of forgiving another $80,000 after the same two year period. An interest rate of 1% will be charged on each loan. The $25,000 is to be repaid over 10 years and the MIF loan is to be repaid over 15 years. The loans are to be used to purchase machinery and equipment.
The EZ Fabricating expansion is expected to cost a total of $1,370,000. The estimated taxable value increase with the expansion is $282,000.
The EDA recommended approving both loans as requested including the option for the city to forgive the additional $80,000 after two years.
Councilor Mike Urban expressed his support for the project, but he was not on board with forgiving all the additional $80,000. The loans were approved as requested including the option for the city to forgive the additional $80,000 after two years. Urban voted no.
Other business in brief
• The second consideration for amendments to the city’s Charter failed. It was required that there be a unanimous vote in favor. Councilor Pam Bluhm voted no.
• The second consideration and publication of Ordinance #436, Mayor and City Council Wages, were approved.
• Three pay estimates for the ongoing pool project were approved: $124,314.34 to Benike, $69,145.37 to Fraser, and $104,785.00 to Ricchio.
• Young explained the property at 112 North Main St. is in foreclosure. The city has until October 29 to decide if it wants to acquire it. Young noted the staff is not recommending the city acquire the property. No decision was made this day.
• A WSB service agreement was approved concerning Main St. lighting. WSB has been asked for lighting specifications related to the 2019 Highway 52 project.
• Chandler Erickson and Bryan Neis were hired as new firefighters.
• The closure of Lonestone Ct. on October 27 to accommodate a one mile and 5k race to benefit the Caleb Eide Memorial Foundation was approved.
• A sewer back-up caused damage to three residences recently. Urban warned residents to be careful and not to flush wipes and/or other rags which have resulted in these costly backups.