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2023.12.11 Special City Council MinutesSPECIAL OTSEGO CITY COUNCIL MEETING MONDAY, DECEIVIBER 11, 2023 5:30 PM OTSEGO PRAIRIE CENTER Call to Order: Mayor Stockamp called the meeting to order at 5*30 PM. Roll Call: Mayor Jessica Stockamp and Councilmembers: Jeff Dahl, Tina Goede, Brittany Moores, and Ryan Dunlap. City Staff: City Administrator/Finance Director Adam Flaherty, Assistant City Administrator/Human Resources Sabrina Hille, City Planner Daniel Licht, City Attorney David Kendall, and City Clerk Audra Etzel. 1. Public Hearing on Proposed Capital Improvement Plan Jonathan Loose of Wold Architects reviewed the packet material and presentation. CM Dunlap asked what phase would the solar equipment be added to Prairie Center? Mr. Loose thought most likely Phase 2 of the project. CM Dunlap asked about the space study needs, he does not believe all staff need space and questions bringing more services off -site. Mr. Loose said there are some assumptions for the staffing and the proposed building is not built out for all future needs. Jessica Green of Northland Securities reviewed the Five -Year Capital Improvement Plan included in the packet. Ms. Green said the bond cannot exceed $34 million, noting the estimates are currently estimated at $32 million. CM Dunlap asked what collateral is required for a lease revenue bond? Ms. Green said the collateral would be the bung. CM Dunlap asked about the payments and debt limits. Ms. Green said there are only certain bonds that apply to the debt limit; Otsego mainly carries bonds for utility related debt that are off -setting net utility revenues, so they are not included in the calculation. CM Dunlap asked about the five times rule. Ms. Green said you cannot exceed the 5 times what the original principal 15 to the last principal. Mayor Stockamp opened the Public Hearing at 6:01 PM. Randy Hermann, 14282 9151 Street NE does not feel the City can afford the project and this is the not best economic time to build a City Hall. Page 1 of 4 MINUTES OF THE CITY OF OTSEGO SPECIAL CITY COUNCIL MEETING DECEMBER 11, 2023 Gabriel Davis, 6689 Packard Avenue NE has lived in the community for 45 years. Mr. Davis heard about the 19.4% growth and formed the Concerned City of Otsego group on social media out of concern for residents being able to afford their taxes. Mike Riley, 9721 Jandel Avenue NE is concerned about the large tax increase along with the increases to home values. Mr. Riley is concerned if there is a recession and how this will affect costs. Mr. Riley thanked the City Council for looking to the future, but would prefer there be compromises and portions of the projects be held off until the economy has settled. Arthur Rael<er, 6689 Packard Avenue NE has lived in the City for over 50 years. Mr. Rael<er cannot believe in 81 years the City is making this decision. Stephanie McCool, 8221 Ochoa Avenue NE has lived in Otsego for the last 24 years. Ms. McCool would like to see the current buildings expanded instead of building a new building. Michael Olin, 8171 Palmgren Avenue NE read from an email in the agenda packet submitted by another resident. Mr. Olin would like the City Council to bring this to the voters. Kayla Griswold, 11859 73rd Street NE appreciates the planning that went into the project. Ms. Griswold agrees there is a need with the growth, but does not feel'this is the right time. Corey Tanner, 7952 Palmgren Avenue NE is a 17-year resident and past City Council member. Or. Tanner sees a need to expand, but is not convinced this is the right time to expand and build the City Campus. Mr. Tanner suggested building a reserve and remodeling in the meantime. Cory Conrad, 6343 Marlowe Avenue NE understands the need for growth, but feels this is not the time to consider. Mr. Conrad appreciates everyone's hard work put into the project. Marvin Valerius, 13701 70th Avenue NE feels this is the wrong time to do the project, suggested spreading out over 5 years. Mr. Valerius appreciates everyone's hard work and recommends a committee be formed. Toni Seroshel<, 10410 Kahler Avenue NE said she trusts the leaders of the community. Ms. Seroshel< said she knows there is a need for more space at public works and has seen elections testing being held out in the halls. Kristy Tanner, 7952 Palmgren Avenue NE has been in her home for 18 years and cannot afford the proposed project. Ms. Tanner would prefer to see the buildings remodeled and staff work from home. Ms. Tanner is disappointed in the decision. Heather Cronin, 13088 83rd Street NE feels there will not be growth with the taxes proposed. Ms. Cronin asked the City Council to retook at the costs. Page 2 of 4 MINUTES OF THE CITY OF OTSEGO SPECIAL CITY COUNCIL MEETING DECEMBER 11, 2023 Dennis McAlpine, 13355 85th Street NE feels there are other options for the maintenance buildings. Mr. McAlpine has been a resident for 51 years and cannot believe the City is raising taxes at the rate proposed. Kimberly Kragt, 5473 Ranvier Avenue NE challenges the City to make different priorities like the water quality and supporting the school district. Ms. Kragt said the Wright County Assessor told her Otsego is a bubble and seeing an increase in market values. Ms. Kragt said her taxes have more than doubled in the last five years. Jeanne Holland, Wright County Commissioner said the home value is based on market value. Ms. Holland noted the assessor said told her Otsego is an attractive area and homes are selling for high values. Ms. Holland also addressed the Homestead Credit and is working to get those credits back. . I<alar Komarec, 8327 Padgett Circle NE, been in the area for 10 years and thanked everyone for engaging in the process. Mr. Komarec is a purple heart recipient and did not have a fancy building to plan combat operations. Mr. Komarec does not want these taxes and plans to sign the petition. Randy Hermann, 14282 915t Street wants to know if the City Council wants to move forward with the project, considering all the residents in attendance tonight? Mandi EII<en, 11583 79th Street NE, feels the City needs a post office and a zip code. She is a single mother and feels this is not the right time. Clint Wolf, 7322 Palmgren Avenue NE said he is has lived in the community since 2020. Mr. Wolf cannot afford the increase. Mr. Wolf feels the City is not growing in the right direction. Neal Thompson, 15428 96th Street has been a resident for 41 years and his taxes in 1982 were $412 and the current cost is $4,250. Mr. Thompson is very angry with the proposed increase. Tony Siegler, 8836 Packard Avenue NE moved to the area in 2002. Mr. Siegler attended the open house and discussed the home values and homestead credit with Mayor Stocl<amp. Mr. Siegler said residents cannot afford the increases. Mr. Siegler does not care about the round abouts. Mr. Siegler asked where the new development tax base goes? CM Goede at 6:59 PM motioned to continue this special meeting following the 7 PM City Council meeting, seconded by CM Dahl. All in favor. Motion carried 5-0. Mayor Stockamp at 8:57 PM motioned to reopen the special meeting, seconded by CM Moores. All in favor. Motion carried 5-0. Flaherty reminded City Council that the public hearing was still open. Page 3 of 4 MINUTES OF THE CITY OF OTSEGO SPECIAL CITY COUNCIL MEETING DECEMBER 11, 2023 Gabriel Davis, 6689 Packard Avenue NE thanked the City Council for their action to not move forward at this time. Mayor Stocl<amp closed the Public Hearing at 9:00 PM. City Administrator/Finance Director Flaherty noted six written public comments were included in the packet. Ms. Green said given the discussion at the public hearing she recommends not taking any action. Attorney Kendall agrees with no City Council action. City Council concurred to take no action on the proposed Capital Improvement Plan Document and respective resolution. 2. Adjourn. CM Dahl motioned to close the meeting at 9:05 PM, seconded by CM Goede. All in favor. Motion carried 5-0. City of Otsego: IZ y ,% ATTEST:'... ,,i ;� � ���� ; k i` (, � �} 7 Audra Etzel, City Clerk '�� ;', Page 4 of 4