City Council Minutes

Members Present: Mayor Mary Hershberger Thun; Councilmembers: Tom O'Connor, Jim Crowley, and Kim Roden.

Absent: Tom Strigel

Staff Present: Don Uram, City Administrator.

Others Present: Shannon Sweeney, TIF Consultant.

A motion was made by Councilmember O'Connor to adopt the agenda. The motion was seconded. With all members voting in favor, the motion carried. Vote: 4 Ayes, 0 Nays.

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A motion was made by Councilmember O'Connor, to Approve the December 19, 2011 Claims Roster in the amount of $700,550.76 as submitted. The motion was seconded. With all members voting in favor, the motion carried. Vote: 4 Ayes, 0 Nays.

A motion was made by Councilmember Roden, to Approve Resolution No. 11-126; A Resolution approving the donations. The motion was seconded. With all members voting in favor, the motion carried. Vote: 4 Ayes, 0 Nays.
 

Don Uram stated that at the November 14, 2011 City Council meeting, the City Council approved the request to hold a public hearing for the modification of TIF District No. 4 that includes Fresh Seasons Market.

Shannon Sweeney the City's TIF Consultant stated the purpose of the modification is to reduce the number of parcels in TIF District No. 4 and to reduce the budget. The rationale behind the modification is that parcels in the TIF District recently had a reduction in market value, which reduces the amount of increment collected. A parcel within the District recently had a tax appeal in which it reduced its valuation. Therefore the amount of increment that is eligible is reduced. The City has an agreement with Fresh Seasons, to pay them the increments as they are collected.

Mr. Sweeney stated that it is the City's understanding that the modified TIF District would become effective in 2012; however, Carver County is stating that a MN Statute would not allow a new TIF District to become effective in 2012. Mr. Sweeney stated that legal counsel has communicated with Carver County that this is not a new TIF District, it is an amendment to an existing one and they should be able to make it effective in 2012.

Council Member Roden asked if the City has ever had a modification to a TIF District resulting in the same issue that is occurring. Mr. Uram stated he is not aware of this ever happening. Council Member Roden asked if staff has discussed this issue County Commissioner. Mr. Uram stated that there have been numerous discussions with Carver County staff and the County Commissioner. Mr. Uram stated that Jennifer Bolton, Bond Counsel from Kennedy and Graven is also communicating with the County to move towards resolution.

Council Member Crowley asked about the timing of approval. Mr. Uram said it is the City's intent to get this resolved by the end of the year. If we can't reach an agreement for 2012, it would certainly be implemented for 2013.

Council Member Crowley asked if there's anything else the City can do to get the County to implement the modification effective for 2012.

Mr. Uram stated that discussions will continue with the County and he is compiling costs associated with this process. He stated that he will present this to the parties involved in this process so they can see what this is actually costing the City.

Tom O'Connor wanted to clarify that the amendment to the District is not of financial consequence to the County. Mr. Uram stated correct, the hold-up is an interpretation of the procedure. Mr. Sweeney clarified that the financial impact to the County is less than a fraction of percent and that the issue is a matter of procedure.

Council Member O'Connor clarified that there is no consequence to the other parcels being removed from the District. Mr. Uram stated that is correct.

Mr. Uram stated the City will get a written legal opinion based upon what the County states is an issue and submit the opinion to them.

Council Member Roden stated she does not want to see this negatively impact the business and that this amendment does not affect the County.

Council Member Roden asked Mr.Sweeney if he has ever encountered this issue in other Counties. Mr. Sweeney stated that he has not has encountered an issue like this in other Counties. Mr. Sweeney stated that in discussions with the State Auditor on the interpretation of the procedure for implementing an amendment to a TIF to become effective immediately, they stated they view this as an issue that will become common in the next couple of years due to the economy. Therefore, they are trying to resolve this procedural issue to be proactive for future scenarios.

Council Member Crowley asked what the County's concern is in setting a precedent, what the negative impact is to them. Mr. Uram stated he doesn't know specifically. Council Member O'Connor stated it appears it is an overly strict reading of a statute and they are trying to cover themselves.

Mr. Sweeney stated he will hand deliver the signed resolution to the County tomorrow. He stated his will relay that this can be implemented for 2012 and then it's a matter of whether the County determines that it is appropriate procedure. Staff and legal counsel will continue to work towards getting this implemented for 2012.

Mayor Hershberger Thun opened the public hearing at 5:50 p.m, the public meeting was closed at 5:51 p.m.

A motion was made by Councilmember O'Connor, to Approve Resolution No. 11-127; A Resolution adopting a modification to the Tax Increment Financing District No. 4 (Downtown Redevelopment IV) The motion was seconded. With all members voting in favor, the motion carried. Vote: 4 Ayes, 0 Nays.

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(10) NEW BUSINESS:

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Council Member Roden reported that a new process was implemented to help reunite lost dogs with their owners.

Mayor Hershberger Thun wished everyone a Merry Christmas and a happy and prosperous New Year.

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A motion was made by Councilmember Crowley, to adjourn the meeting at 5:55 p.m. The motion was seconded. With all members voting in favor, the motion carried. Vote: 4 Ayes, 0 Nays.

Respectfully submitted,

Don Uram
City Administrator