ITEM 3.2A SCC 5.28.2015 MinutesITEM 3_2A
SPECIAL CITY COUNCIL MEETING
PRAIRIE CENTER
MAY 28, 2015
6:00 PM
Call to Order.
Mayor Jessica Stockamp called the meeting to order at 6:00 PM.
Roll Call: Mayor Jessica Stockamp; Councilmembers: Vern Heidner and Doug Schroeder.
Absent: Councilmember Tom Darkenwald. Councilmember Jason Warehime arrived at 6:03 PM.
Staff: Lori Johnson, City Administrator; Andy MacArthur, City Attorney; Daniel Licht, City
Planner; and Tami Loff, City Clerk. Present from Briggs and Morgan, Mary Ippel and Ehlers,
Mark Ruff.
1. TIF Application.
Also present, Applicant Casey Darkenwald, John Darkenwald and Jim Ellis.
City Administrator Johnson and City Attorney MacArthur stated that this meeting is to review
TIF law and practice in broad, general terms, to update the Council on the application for
assistance, to review policy considerations, and that no decisions need to be made. The City
has received a request for $6,900,000 of tax increment assistance from Otsego Apartments LLC
for the proposed Riverbend North development. City Administrator Johnson stated that Mark
Ruff of Elhers and Associates and Mary Ippel of Briggs and Morgan have reviewed the request
for the City. Ehlers Representative Mark Ruff reviewed the background on TIF. The Council
must make a finding that the proposed project would not be feasible but for the use of TIF. Mr.
Ruff said you can give what you want in TIF within the legal parameters; however, there is no
requirement to give the full amount. He stated the philosophy and policy is up the City Council.
The Council has the discretion to reject a request for TIF. They also can add conditions to any
TIF provided which are contained in an enforceable, negotiated written agreement.
Mr. Ruff reviewed the findings in his report. He reviewed the economics of the request, the
analysis of economics and council options. City Administrator Johnson asked him to review the
timeline. Mr. Ruff said he would recommend the City Council start with the term sheet and
determine if the City is interested in going further before drafting a TIF plan. A Public Hearing
would be required with notice to the County and School District for comment at least 30 days
prior. It would go to the Planning Commission to review compliance with the Comprehensive
Plan and then the City Council.
Mayor Stockamp said Mr. Ruff mentioned the land prices by the applicant seem high in his
opinion. Mayor Stockamp asked if the City could ask for more information. Mr. Ruff said yes you
could ask the applicant for more information to clarify.
CM Warehime asked if TIF is used more for new development or redevelopment. Mr. Ruff said
about half for redevelopment. Ms. Ippel said it often depends on it if it's in greater Minnesota or
the metro area. CM Heidner said the assistance the city has provided in the past has been for
roads and for smaller amounts in a redevelopment project. Mr. Ruff said he would encourage
the City Council to consider the site and ask what would happen to this site if TIF is not
approved. The option of abatement was discussed.
This meeting was for information only. The application will be brought back at a later date for
consideration at which time the applicant may make a presentation on the request.
2. Adjourn.
CM Warehime motioned to adjourn. Seconded by CM Schroeder. All in favor. Motion
carried. Adjourned at 7:26 PM.
ATTEST:
Tami Loff, City Clerk
Mayor Jessica Stockamp