ITEM 3.2A SCC 6.24.2015 MinutesITEM 3_2A
SPECIAL CITY COUNCIL MEETING
CITY HALL
JUNE 24, 2015
5:30 PM
Call to Order.
Mayor Jessica Stockamp called the meeting to order at 5:30 PM.
Roll Call: Mayor Jessica Stockamp; Councilmembers: Vern Heidner, Jason Warehime and Doug
Schroeder. Absent: Councilmember Tom Darkenwald.
Staff: Lori Johnson, City Administrator.
1. Finance Director Second Interview.
A second interview was conducted. The Council concurred that the applicant should advance to
the next phase of the selection process including background check, assessment, and
references.
The Council recessed at 7:05 PM. The Council reconvened at 7:15 PM.
City Attorney Andy MacArthur and City Planner Daniel Licht arrived at this time.
2. Economic Development Strategies.
City Administrator Johnson opened by explaining that this Economic Development Strategies
discussion is not specific to any one project or application. She stated it is a general discussion
of the Council"s economic and redevelopment development goals, priorities, and strategies for
the City. She stated the Council discussed economic development policy very broadly in the
past with the intent of coming to consensus on City development priorities. City Attorney
MacArthur reiterated the importance of general policies for economic development.
City Administrator Johnson reviewed a list of Economic Development Policy questions and
discussed the Council's responses.
The Council identified and agreed upon the following economic development priorities: High
priorities include manufacturing, office/professional, creating jobs, increasing tax base,
creating/assisting with creating shovel ready sites, and senior housing. Medium priorities
include warehousing and retail. Low priorities include multi -family housing, low-income
housing, and redevelopment.
The Council stated that no specific area of the City should be targeted for development
assistance above any other area.
The Council reviewed incentives and concurred that incentives will be considered to attract
manufacturing if the jobs met a wage threshold; office/professional; redevelopment through tax
abatement, Economic Development Loan fund, and assessing some fees; retail through
assessment of SAC/WAC fees; senior housing; and redevelopment to eliminate blighted or
substandard housing. Incentives will not be considered for warehousing; low and moderate
housing until there is a proven, identified need.
The Council concurred that land write down will be considered only for extra ordinary costs of a
developable commercial/industrial lot included in the flood plain.
The Council concurred that assistance for infrastructure will be considered only on projects that
qualify as high priorities as stated at the beginning of this meeting. The roads must be collector
to qualify; local streets do not qualify. Assistance would also be considered to extend utilities
(water, sewer, storm water) to create shovel ready sites.
The Council concurred that "soft" costs would not be considered eligible costs.
The Council concurred that higher building design/quality standards could be imposed by the
City and a minimum value assessment agreement could be required on projects receiving
assistance/incentives.
The Council concurred that the following are parameters the City will consider in setting
incentives: maximum percent of project; maximum number of years of TIF or Tax Abatement
assistance; maximum per type of project; by location; by number of jobs and wage levels; by
market value; if it meets the City's top economic development priorities.
The Council stated all projects will be pay as you go with bonds considered only to fund city
infrastructure.
City staff will draft a proposed policy document summarizing Council consensus for future
consideration by the Council.
City Administrator Johnson stated on Monday she met with a representative of a company
working on behalf of MNDEED to produce a marketing publication promoting development in
Minnesota. The publication is directed at site selectors nationwide with anticipated circulation
of over 17,000. Cities and economic development organizations are able to advertise and
promote their location in the magazine. She stated that many of the larger, prominent ads
have already been purchased, but a prime half page ad remains at a cost of $3,525. She stated
if that ad is no longer available, the next option is a $5,575 ad. The cost includes design of the
ad by the publisher. She stated funds are available in the Economic Development budget for
this ad.
Mayor Stockamp motioned to purchase an ad in the DEED publication for $3,525 and
if that ad space is not available, to purchase the ad for $5,575. Seconded by CM
Heidner. All in favor. Motion carried 4-0.
3. Adjourn.
CM Warehime motioned to adjourn. Seconded by CM Schroeder. All in favor. Motion
carried 4-0. Adjourned at 8:39 PM.
Mayor Jessica Stockamp
ATTEST:
Lori Johnson, City Administrator