At the February 27 meeting of the Chatfield City Council, councilors approved a resolution amending the 2008 agreement with Hilltop Estates LLC.
City Clerk Joel Young explained the target for the number of lots to be sold by 2023 by the developer will very likely be missed due to the effects of the Great Recession. The developer had agreed to have 155 lots sold by 2023 or the city could assess a penalty amount for every lot short of that goal.
The developer of the subdivision had requested a modification of the agreement amending the penalty clause, as he has met all other performance standards. Young suggested the five to six years of economic slowdown impacted the expected sale of lots. A resolution to amend the agreement was worked out over a period of months and went through committee review.
Councilor and committee member Paul Novotny called the amended agreement “reasonable.” The city has the ability to levy a penalty, but the original agreement doesn’t say the city has to levy a penalty. We want this (the development) to continue.
The amendment includes language that the developer agrees to have a minimum of two houses (one in Hilltop and one in either Lone Stone or Fingerson-Donahoe Subdivisions) “listed on MLS” at all times.
The resolution amending the agreement extends the agreement to the end of 2028 and was approved unanimously.
Other business in brief
• Chris Giesen presented the annual EDA report. Numerous projects made 2016 a busy year for the EDA. The hotel project continues to be worked on. Phase I renovation at the Center for Arts was ongoing along with efforts through a lobbyist for Phase II renovation funding in St. Paul. Also, a survey was done to assess interest in SEMCAC bussing services for the city.
The EDA facilitated the downtown façade improvement grant program. It recommended that the city council look into Industrial Drive improvements to make industrial and commercial lots marketable. Two revolving loans were made to local businesses.
• Kristi Clarke presented the Planning and Zoning annual report. Numerous city ordinances were updated in 2016. The Parks and Recreation Master Plan was completed. Other projects included the Assistance to Firefighter’s Grant application. They should learn the results of that application in the coming weeks.
There was over $3 million of new residential construction (14 new homes) and over $1.4 million of commercial construction. There was about $72,000 in residential additions and remodels. One hundred nine single family/detached lots in subdivisions have been sold out of 145 available.
• A resolution in support of a Southeast Minnesota Regional Economic Development Study was approved. The Southeastern Minnesota League of Municipalities wants the state to fund the study to gather information to better understand future needs for economic development in the region. Sixty-one cities can use the information to plan for the expected growth in the region in the coming years. Giesen noted that a bill is in process in St. Paul.
• Young reported that the water meter project continues to progress, adding the system is working well and exceeding expectations.
• Approval was given for the Second Consideration of Ordinance #425 Lot Coverage and its publication.
• Olmsted County Open Book Board of Appeal is scheduled for April 19. People on the Olmsted County side of the city can talk to the assessor about their property valuation.
• Public Works was praised for their clean up in the city after the recent storm.