ITEM 3.2B SCC 5.22.2017 MinutesITEM 3.213
SPECIAL CITY COUNCIL MEETING
OTSEGO PRAIRIE CENTER
MAY 22, 2017
6:00 PM
Mayor Stockamp called the meeting to order at 6:03 PM.
Roll Call: Mayor Jessica Stockamp; Councilmembers: Vern Heidner and Corey Tanner.
Councilmember Jason Warehime arrived at 6:20 PM and Councilmember Tom Darkenwald arrived at
6:23 PM.
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
COO/Operations Andrea Swayne and Ron Touchette, Rock Solid.
1. Review Financial Assistance Requests from Guardian Angels.
This is a follow up from the May 8 special meeting. City Administrator/Finance Director Flaherty gave
an overview of the request and discussions at previous meetings. The applicant discussed their
project and their request.
CM Darkenwald motioned at 7:05 PM to continue this meeting directly after the regular
scheduled City Council meeting. Seconded by CM Heidner. All in favor. Motion carried.
Mayor Stockamp motioned to reconvene the meeting at 8:37 PM. Seconded by CM
Heidner. All in favor. Motion carried.
CM Darkenwald asked if Guardian Angels would turn over the two outlots to the City as part of the
deal. Guardian Angels did not oppose to that. They did request that the $50,000 the City received
from the conduit bond issue from the Engel House project be dedicated towards the park funding.
They also requested that the fee the City would receive for the conduit bond issue on this Otsego
project would also be dedicated towards the park funding. City Administrator/Finance Director
Flaherty stated that this amount is based on the par amount of bonds issued, and currently estimates
this amount to exceed $135,000.
CM Darkenwald motioned to approve a 90% of annual tax increment over the full 26
years allowable; Direct City staff to draft an agreement with conveyance of the two
outlots to the city; with the $135,000 bond issuance fees received by the City on the
conduit debt issue could go towards improvements to the park plus the $50,000 money
allocated from the Engel House also to be dedicated to the park.
City Administrator/Finance Director Flaherty asked for clarification on whether the Council would be
capping the amount of tax increment. The Council discussed amongst each other and referenced the
recommendation from Ehler's to cap the amount of assistance. No clear direction was provided to
staff on this matter.
Seconded by CM Warehime. All in favor. Motion carried.
CM Heidner motioned adopt Resolution 2017-46 calling for a Public Hearing on July 24,
2017 or sooner if possible on the proposed adoption of a modification to the
Development District No. 1; the proposed establishment of Tax Increment Financing
District No. 3; and the adoption of a Tax Increment Financing Plan. Seconded by CM
Tanner. All in favor. Motion carried.
2. Adjourn.
CM Darkenwald motioned to adjourn. Seconded by CM Warehime. All in favor. Motion
carried. Adjourned at 9:S1 PM.
ATTEST:
Tami Loff, City Clerk
2
Mayor Jessica Stockamp