ITEM 3.2C SCC 4.24.2017 MinutesITEM 3.2C
SPECIAL CITY COUNCIL MEETING
OTSEGO PRAIRIE CENTER
APRIL 24, 2017
*5:30 PM
Mayor Stockamp called the meeting to order at 7:21 PM.
Roll Call: Mayor Jessica Stockamp; Councilmembers: Vern Heidner, Corey Tanner, Tom
Darkenwald and Jason Warehime. Staff: Adam Flaherty, City Administrator/Finance Director;
Ron Wagner, City Engineer; Daniel Licht, City Planner; Andy MacArthur, City Attorney; and Tami
Loff, City Clerk. Also Present; Guardian Angels Chief Executive Officer Dan Dixon; Guardian
Angels CFO Troy Hanson; and Guardian Angels C00/Operations Andrea Swayne; Ron
Touchette, Rock Solid; and Nick Anhut, Ehlers.
1. Review Financial Assistance Requests from Guardian Angels.
Mr. Dixon distributed and reviewed the current site plan for Guardian Angels Senior Community -
Riverview Landing. He further reviewed the historical background of Guardian Angels.
Mr. Touchette reviewed the public amenities which included the proposed riverside overlook,
walking path and footbridge that would span the existing storm water pond to the riverside
overlook, as well as the plaza, which includes sail shades and seating areas. He also reviewed
the community amenities of the Riverview Landing Community building which included; a
wellness center, aquatic therapy and a multipurpose community room.
City Administrator/Finance Director Flaherty stated that Guardian Angels have made a formal
request for TIF; they have completed the application required and have paid the required
escrow fees on this project. Nick Anhut from Ehlers reviewed the financial calculations which
were provided in the packet. He stated potentially around $151,666 is created as tax increment
at the maximum term of 26 years. This would be available under an affordable housing district
which is one of the districts that the statutes allow for.
CM Warehime asked how this project meets the affordable housing. Mr. Dixon said the TIF
district requires 20% of the apartment be restricted at 50% of median income, and must meet
that eligibility each year. City Administrator/Finance Director said roughly around $31,000 per
year. Mr. Anhut said correct and that does fluctuate and depend on the occupancy. Mr. Hanson
also reviewed the Wright County elderly waiver which is around $871; which he stated would
be about 10% of the resident population.
Mr. Touchette said Guardian Angels is asking for the maximum 90% of the term which is the
$151,666. City Administrator/Finance Director Flaherty clarified it would be roughly $135,000
after State Auditor fees and City administrative fees.
CM Darkenwald said we have had these conversations when Guardian Angels was first
proposed to buy the property and the city having to put the streets in and sewer and water in
and that in our future comprehensive plan we had this property guided commercial and we
need to look at that as a benefit to the community to have a commercial area. He further said
he believes at that point and time we didn't believe we would be facing any TIF and that we
would be getting some good tax generation off this property that would benefit the rest of the
citizens of the community. He said there is some benefits here however he is struggling right
now with this request. CM Heidner concurred referring to the October 26, 2016 minutes.
CM Darkenwald explained it's not the project itself but as a City Councilmember we need to
make sure we are doing the right thing for our residents. The City Council concurred. After
some additional discussion the City Council asked for additional financial data from Guardian
Angels. Nick Anhut from Ehler's will work to review that financial data, and then relay the
information to City staff.
It was discussed that no decisions would be made at this meeting giving Ehlers time to gather
additional data requested and for the City Council to take in the information and request
received his evening.
The City Council also directed City staff to identify possible partnerships between Guardian
Angels and the City as part of this project. A quick example that was discussed was
maintenance of the trail system in the adjacent park.
Mayor Stockamp motioned to set a Special City Council Meeting on Monday, May 8,
2017 directly following the regular scheduled meeting at Prairie Center. Seconded
by CM Warehime. All in favor. Motion carried.
2. Adjourn.
CM Darkenwald motioned to adjourn. Seconded by CM Warehime. All in favor.
Adjourned at 9:27 PM.
ATTEST:
Tami Loff, City Clerk
Mayor Jessica Stockamp
*Directly Following the Regular Scheduled Meeting.
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