Good afternoon. It is 4:30 p.m. on Tuesday, July 15th, 20125. We will call the city council meeting of the city of New to order. At this time, our first item of business is the consent agenda. Councilors, what are your wishes? I'll move it. Second. Thank you. We do have a motion and a
second. Any additional discussion? Those in favor signal by saying I. I. That motion does carry. Item 2.1 is a public hearing for recommendations amending the home rule charter ordinance number 2025-102
through 2025-108. Council President, counselors, um there have been no changes uh since the first consideration uh of the um amending uh of the charter sections. This is a public hearing. We will be amending one, two, three, four, five,
six, seven um ordinances within the city charter. Um if you would like to be heard, please state your name and address for the record at the microphone. I don't see anybody coming up to the mic. I'm going to conduct the public hearing, hear all testimony from the public, whether presented orally or in
writing, concerning the proposed amendments to the new Elm City Charter, the following ordinances amending the city charter. Ordinance number 2025-102, amending section 28, duties and pies of the mayor. Ordinance number 2025-103,
amending section 60, special meetings. Ordinance number 2025, 2025-104, amending section 66, procedure on ordinances. Ordinance number 2025105 amending section 87 police department and section 88 police commission.
Ordinance number 2025-106 amending section 101 library board. Ordinance number 2025107 amending section 180 public nuisances. And finally, ordinance number 2025108 amending section 2216 duties of the city
manager. Second. Thank you. We have a motion and a second. Any additional discussion? Director Jorgensson, please call the role. Don't need a roll. I don't need not for this. Okay. Um, those in favor signal by saying I. I. I. That motion does carry. Item 2.2 is a
public hearing on the final plot of Highland Apartments edition. This is a public hearing. Um, Mr. Nisley and Mr. Schnobre, you may begin. Thank you. coming.
Dave Schnobre, uh, community development director for the city of New Home. Madame President, members of the city council, um, I'd like to begin by just uh briefly
reviewing the layout of the plat. Um, right here we have North Highland Avenue running in this direction. This street right here is
County State Aid 27. Um, there is a proposed 10th North Street at this location and the Seventh North Street intersection of North Highland Avenue sits down. property that is being platted is
located here. The largest piece is out lot A which is not being considered for development.
Uh then we have four other lots where development is being proposed. And then we have a lot 3A and 3B. The reason that that lot is laid out
that way is because the property going in this direction towards the north is considered porn's property. And the property going in this direction is considered
abstract property. And so consequently, it's necessary to separate them and to show them with separate dimensions and um separate
location. So that's why you have that difference um on the u on the plat. Now the city council approved the preliminary plat at its May 6th,
2025 meeting. The planning commission unanimously recommended approval with conditions of final plat at its May 29th, 2025 meeting.
There have been some minor changes to the plat since the May 29th meeting. Those are both the result of the Torrren's property situation.
So we had that separation of lot three as was uh indicated and then we also had the platting of two different roadways. One being 7th north.
So that was an additional amount. And then we have a connection of Lind Street to um 7th North Street. So now we have
an 80ft rightway that runs from 7th North Street all the way to North Highland Avenue on the other side of the high school. In addition to those changes, um the lot
numbers for lot one, two, three, and four, they were rearranged. Lot one and two now front on North Highland Avenue. Lot three and four
are um located at the rear. The total acreage being platted is 35.21 acres. Um the plat consists of one outlot,
four I guess or five lots and public right away. So it's a fairly simple plat. Um, all of the lots have frontage on a public street, an adequate
frontage, and all of the lots meet the required setbacks and they required size for a lot in what we would term the R4 zoning district.
that being the district that we used to evaluate this particular request. There were six different conditions that were identified by the planning commission.
The first was to pay the parkland dedication fee of $4,200. That payment is pending. Second, they are to provide an electronic file of the plat in an AutoCAD 2016 or newer format. That
notice has been provided to the land surveyor. Three, they were to enter into a development agreement. That is pending. Number four, they were to file the resolution approving the plat with the
Brown County Recorders Office. So, that file is pending. plat would have to be signed first. Uh five, they would have to determine if a connection fee must be paid for access to the storm water quality pond located
south of 7th North Street. A fee has been established to allow them to use that particular pond for storm water quality purposes. And number six, they need to secure a plan unit development zoning designation
for the subject property. That would conclude the staff report on the plat. Thank you, Mr. Schno. Um, this is a public hearing regarding the plotting of this property. If anybody would care to
be heard, you can state your name and address for the record at the microphone, please. Hello. Good afternoon. Hi. Um, Council President Angela or sorry, Butter. Um, wanted to talk about uh just
some concerns that we have in the neighborhood or I have personally. So, I'll speak on behalf of some that agree with me. Um, and it relates to the platting of the property. It relates to the safety the platting of the property. No, the safety ass platting of the property. Yes,
the safety of the plat. Am I here at the wrong time? Yes. Sorry. Okay. This is in regards the the public hearing is in regards to the layout and the platting of this property. Okay. So, I was not here able to be here for the last meeting. So, I guess I missed that opportunity.
And I would speak with the safety committee on this. Does that sound right? Yes, the safety commission. All right. Thank you for certain. Thank you. Seeing nobody else on uh that needs to speak, um I'll make a motion to close the public hearing and offer a resolution with conditions approving the
final plat of Highland Apartments Edition generally located at 901 North Highland Avenue. Second. Thank you. We do have a motion and a second. Any further discussion? Ju just one question for the plat. Uh the condition number five, the city
engineer, you know, we determined what the connection fee for the uh storm water an estimate. Um madam president, state councelor, so that storm water fee was established back in 2007 with the development uh then was the EDA subdivision at Milford
Heights. Um so there was a a portion of the subject property that was subject to that storm water quality pond um that's uh in that subdivision. So we were able to calculate the area of the development
within that um drainage field boundary. Okay. And then um that acreage equated to the fee that was established back in 2007. So all right. Thank you. Any additional discussion? Director Jorgensson, please call the
role. Councelor Christian, yes. Councelor Wormka, yes. Councelor Schmidz, yes. Councelor Mack, yes. President Becker. Yes, that motion carries. Item 2.3 is a public hearing on the final plat of land haven edition.
Once again, Mr. Schnowber. Madam President, members of the city council. We need some assistance as far as bringing that plat up for presentation. Okay. Are you able to do that in the Oh, John got it for us. I'll get this ready. Okay.
Okay. Um, the city council approved the preliminary plat at its June 3rd, 2025 meeting. Uh, the planning commission unanimously recommended approval with
conditions at its uh June 26, 2025 meeting. The um applicant is Tony Golden on behalf of Landhaven Development LLC. They have a purchase agreement with the
city to acquire the property. Street address is 2211 Jacob Street. The total platted area is 6.85 acres. The plat is configured in a rectangular
form with a U-shaped private street with a total of 28 lots and two out lots. There also is one lot for the private street. So this is Jacob Street.
This is Baron's Boulevard. This is Walmart. This is the U-shaped street that we talked about and the lots are shown location.
Now, as the council knows, we have two different types of lots within this subdivision. One of which we are going to allow residential development and then another which is solely going to be used for
storage purposes. The storage lots are located here. Lots that will be potentially occupied are located here. So, water and sewer will be extended
from Jacob Street uh to those lots. and there's a total of 22. And then there will be six other storage lots. Um, all of the lots have a frontage of
60 ft. Uh, the lot sizes vary a little bit and the depth of the lots varies as well. Um, an association will manage activities
within this uh, subdivision. The conditions that were identified by the planning commission were to pay the platting fee of $480 to provide an electronic file of the
plat in an AutoCAD 2016 or newer format. Three, the applicant will enter into a development agreement with the city of New Alm. And four, the resolution appro approving the plat will be filed with the Brown County Recorders Office.
That would conclude the staff report. I I have one question for you, Dave. Okay. The development agreement is that and also plus the plan unit development zoning both of those that is part of
the one of the steps necessary to secure the planned unit development designation. That's okay. That's what I read and that'll come back to us. Um yeah, I would expect um probably at your next meeting. Thank you.
Thank you, Mr. Schno. Again, this is a public hearing on the platting of the Land Haven edition. Um, if you would like to be heard, please state your name and address for the record at the microphone. Well, I'm not seeing anybody coming forward. Don't want to speak on behalf of the vets. So, I'm going to offer a
motion to close the public hearing, offer a resolution approving with conditions of final plot of Land Haven Edition located at 2211 Jacob Street. Second. We do have a motion and a second. Any further discussion? Director Jorgensson, please call the role.
Councelor Christian, yes. Councelor Wormka, yes. Councelor Schmidz, yes. Councelor Mack, yes. President Becker, yes. That motion does carry. Item 2.4 is public hearing for a noise variance for music for a mission. Chris,
I did you want to speak or not? This is a public hearing. The public hearing is open. um regarding the noise variance. Good afternoon. Uh my name is Terry Zenel with the local nonprofit Music for Mission and we once again plan on
hosting our third uh Party by the Pond um August 23rd from 3 to 11. That's the music time. So, we're just requesting a noise variance until midnight um just
for let people clear the grounds and tear down and things like that. So, thank you for your consideration. Thank you, Mr. Zeno. Being that we haven't heard anything the last several years on this type of celebration or whatever you want to call it, I'm going to conduct the public
hearing here and pass upon all objections whether presented orally or in writing relating to the request for noise variance. Subsequent to the public hearing, offer the resolution close the public hearing authorizing the request from music for a mission Terry Zennel for a noise variance to permit amplified
sound at Zenel utility contracting for Samson Street to host a party by the pond event on Saturday, August 23rd, 2025 from 3:00 p.m. to 12 a.m. on Sunday, August 24th, 2025. Second. Thank you. We have a motion and a
second. Any further discussion? Director Jorgensson, please call the role. Councelor Christian, yes. Councelor Warmka, yes. Councelor Schmidz, yes. Councelor Mack, yes. President Becker, yes. That motion carries. Uh, licenses and permits. Item 3.1 is a tree service license.
I'll make a motion to approve an issuance of a tree service license for Hansa Tree Service LLC owned by Brandon Bentall 184981 115th Street, Hansa, Minnesota for the period beginning July 16th, 2025, ending June 30th, 2026. subject to compliance
with all city and state requirements. Second. Motion and a second. Any further discussion? Those in favor signal by saying I. I. That motion does carry. Item 3.2 is an annual on sale wine and 3.2% malt liquor
license and intoxicating malt liquor permit. I'll offer a motion to approve the issuance of an on sale wine and 3.2 malt liquor license and intoxicating malt liquor permit for TDH. Happy Joe's LLC,
TBA, Happy Joe's at 1700 North Broadway for the period beginning August 1, 2025 and ending June 30th, 2026. Subject compliance with all city and state requirements. Second. Thank you. We have a motion and a second. Any further discussion? Speak for the city and saying welcome
back. Happy Joe's. Thank you. A lot of people are are very ecstatic. Pretty big deal. Yeah. Any additional discussion? Those in favor signal by saying I. I. That motion does carry. Item 3.3 is a cannabis micro business retailer
registration. Make a motion to approve the issuance of a cannabis micro business retailer registration to Brickside Growers Incorporated at 4 North Minnesota Street. Subject to compliance with all city and state requirements. Second. Thank you. We do have a motion and a
second. Any further discussion? Those in favor signal by saying I. I. I. That motion does carry. Item 3.4 regarding a taxi license. I'll make uh Madame President and counselors, I'll make a motion to approve the issuance of a taxi license
to a Millicare Transport LLC owned by Elmer Reddig 18624 US Highway 14, New All Minnesota for a second taxi vehicle for the period beginning July 16, 2025 and ending June 30, 2026, subject to
compliance with all city and state requirements. Second. We have a motion and a second. Any additional discussion? Those in favor signal by saying I. I. I. That motion does carry. Item 4.1 is summary of business conducted during
board and commission meetings. All right. Uh the park commission met last night. Uh you won't see their items come till the next council meeting. One of the bigger items is going to be uh the park board okay the park and if we okay it $100,000 grant we're going to
apply for for helping redo the trap range. Uh it does sound promising. There'll be a few donations. Uh, one of the interesting things was we got to see the preliminary survey reports of the comprehensive plan. Any of you have a chance, go on and look. Very interesting
what our residents in New what their priorities are and what they weren't. A little different than what I thought they would come back. Uh, EDA meeting I attended. Uh, most of you are aware that the EDA actually changed uh, Fourth North and Broadway. It will no longer be retail residential, strictly three
retail stores. And the rest I'll defer to the mayor and council president. They were also in attendance. That's it. Council new to report. Okay. Uh councelor M. Nothing new. Okay. Councelor Smith. Wait a minute. Somebody's got to report
something. But the mayor always has a great report. I have a list. Madam President, counselors, I just have to report that my two boards and commissions have not met. They're meeting later on this week. Next week. Thank you, Mayor. Um, first of all, um, for some of
you may have seen me with a sledgehammer, uh, in the front page of the newspaper. I was at the Martin Luther College Oldm made old main sledgehammering event. And basically what that is is a
reinvestment of again uh, and thank you to Martin Luther College. Uh, they are redoing the main entrance into Old Maine, one of the icons in New. So, thank you for that. uh sister cities. Uh it was p pretty much just status quo
information update on our fall uh exchange person and then broughtand we're looking for workers uh and um I'm not sure but I know Larry is actively involved in that and others in the room and we're still looking for some people
to fill that schedule. Uh ribbon cutting with the Chamber of Commerce. Goodness sakes, we continue to have more and more. We just finished up three ribbon cutings this last month and a couple more on the schedule going forward. So kudos to the Chamber of Commerce and
good for the city of New uh human rights. I just have to do a shout out to that commission. They don't have a staff person working with them. So everything that they do is on them as volunteers and organizing it. They're going to have a presence at the Bavarian Blast Parade
uh at the Newam Night Out at the Brown County Fair and a new program that they're introducing starting this fall. Quarterly, they want to host a a um presentation on living with limitations.
And so quarterly, they might talk about living with a limitation of vision. It could be mobility and any limitation that people may be experiencing and want individuals with those limitations as well as people providing services to be
in the same room. So looking forward to that. Thank you. Perfect. Um just another update with um EDA. We um are kind of um in support of the new project of the tiny homes so far. Um so we're looking to see where
that's going. Again, that's being championed by New Brick, um, which is a separate entity from the EDA, but we do work together, um, at times and provide support for that group as well. Um, but that concludes my updates. Anyone else?
Thank you very much. Um, under old business, item 5.1 is an amendment number two to task order 2020-03 for the airport engineering services, Mr. Stoddheim. Thank you, Madam President, city councilors. Um, as you may recall, we've had uh this task order before you
previously. So, this is task order 2020-03. So, this is for the AWAS replacement up at the airport. And as a reminder, the AWAS is the weather station that the uh state manages and and uh operates um up
at our airport. The previous amendment to this task order was um or the original task order was for the kind of um design and placement of the AWAS system. Amendment number one uh involved the actual bidding and administration uh
for this project um and development of plans and specifications. Uh Mindot has indicated that they are going to be leading this project. So we do not need the um bidding and administration uh for the project and Mindot will also be
overseeing the construction oversight and then coordination. So that results in a decreased u fee amount for that task order 20203. Um, so we originally had the original task order and then we had the amendment
to increase the task order uh scope and now we have the second amendment to bring back that scope of work by that almost $9,900. Um, just want to remind you also that this is a 100% reimburseable state funed grant once we
execute the amendment. Uh, we will also have the grant amendment from the state of Minnesota as well. So be happy to answer any questions you may have. A motion to approve amendment number two, task order 2020-03 for the airport engineering services to meet and hunt
incorporated professional services contract in the amount of $41,933 and authorize city manager execute the agreement amendment contingent on the city receiving the Mandot Office of Aeronautics Grant for engineering services. Second. We do have a motion and a second. Any
further discussion? Those in favor signal by saying I. I. That motion does carry. Item 5.2, ordinance number 2025-109, second consideration for zoning regarding project spark. Mr. Nisley. Hello. Right. Good evening, council president,
counselors. John Nisley, planner with the city of Newm. Uh again, this is the second consideration um of ordinance 2025-109. That's with regards to the proposed uh tiny home project um on the south end of
New Alm. Uh there have been no changes since the first reading of this ordinance. Um and the property is legally described in exhibit A of the ordinance will be will be reszoned from medium density residential district R3 to plan unit uh development district
number four. That's PUD number four. Property is legally described as lots 1 through 8 integer edition. The property generally has a street address of 418 and 42413 South Street and 1305 through 1315 South Minnesota Street. If this
were approved tonight, uh staff would um send the ordinance to the journal to get published. Once it's published, the ordinance would go into effect 30 days after the publication. Uh and that concludes the staff report. Thank you, Mr. Nicely.
I'm going to offer a motion to conduct a second consideration and adopt the ordinance number 2025-109 amending chapter 3.2 of appendix A of the city code of the city of Newm relative to zoning in said city.
Second. Thank you. We have a motion and a second. Any additional discussion? Those in favor signal by saying I. I. I. That motion does carry. Item 5.3 is request for additional tax abatement
assistance for M &D Properties LLC. Okay, Madam President, members of the city council, this is for the property located at 22 uh 29 North Highland Avenue. Uh I have broken the um staff report
into three parts. Um the first part deals with the development that has taken place to date. The second part deals with the proposed new development and the third
part is kind of a miscellaneous section. So the owners of M andD properties are Dale Bushard and Mike Crawl. The city council at its January 7th, 2025 meeting directed staff to prepare
information that would allow for the establishment of a tax abatement program at this location. The property is zoned R4, which is the proper designation. The lot size is 2.44 acres.
The owner has received a building permit to construct an 8-unit townhouse project on the property and that is currently taking place.
Okay. uh progress on that uh the preparation of the tax abatement program documents for phase one was suspended when M &D announced that they would be constructing a new sixunit residential
structure to the north of the one under construction. They further stated that they would also request tax abatement assistance for the new building segment.
Um the amount of revenue generated um by the second project would be less due to the smaller number of units. A building permit for the second phase has
not yet been issued. The applicant um has requested tax abatement assistance to help ease excessive costs of building and to allow rental rates to be affordable to residents of NewM and
individuals looking to become residents of NewM. It would also address the community's housing needs. city currently has six existing um tax abatement projects.
Um the establishment of a tax abatement project would require a development agreement and a public hearing. Um the intent on staff's part would be to establish
one program for both segments if the council should decide to proceed with the second. Um so at this time we're simply requesting authorization to work with a consultant that we use for this purpose
to prepare the necessary um information and to present that to you um at a later date. Um the cost for those services would not exceed $1,500. We initially thought that we would want
to complete this work as quickly as possible, but in their letter to the council, they indicate that the start of construction for this second phase would not take place until the spring of 2026.
So that would give us a little bit of time to complete that um necessary work. The city does have a fee to establish a tax abatement program and that's $4,000. That would conclude the report.
Thank you, Mr. Schno. Did they state their reasoning why they wanted to go from eight units down to six and actually reduce their potential overall income? because the configuration of the lot is such that it is reduced in size
the further it goes um to the northwest. The railroad tracks on the one side and Lake Avenue on the other are not parallel. They're at uh angle. They're at an angle to each other and so
the lot size reduces as you proceed. So they are looking to use one of the remaining lots in the addition. Well, there's actually there's actually just one lot there. So what they're proposing to do is they have the eight
units that front on North Highland Avenue. They would construct a roadway around those eight units and then the six units would sit behind that. So this would potentially be the seventh
tax abatement project if it if we did it separately. Mhm. Um no, excuse me. It would be the seventh if we combine it. So if you combine but potentially it could be seven and eight if we were to move forward with that. um where is the
point where we start to feel um discomfort with the amount of tax abatement incentives that we're offering like where it might impact revenue that we have coming in that we're expecting. Well, there are two thresholds. One is um
$200,000. Uh the second is 10% of the city's is it the net tax capacity? I can't tax capacity. Yeah. So, we're a ways away from that. And the length, Dave, is remind me
like, well, the length varies, right? So, um, what are we looking at? It it could be 15 years, it could be 10 years. That that's something that we typically look at when we know a little bit more about the volume
of revenue that's going to be generated by the project and what is necessary. uh that you know that the developer needs to for the project. I'd be comfortable with this. It's uh developing on a what I would call an
undesirable section of the village there. And I mean more rentals the better that are actually nice and these what he's building is I'd say actually beautiful. So I' carried be willing to say carry on.
Anyone else have anything to say? I'll make a motion to receive communication from M &D Properties LLC and authorize city staff to prepare necessary documentation to expand the tax abatement program at 2229 North Highland Avenue. Second. We do have a motion and a second. Any
further discussion? Um I'm definitely in favor of pursuing more information. Um, I just I know I've seen a lot of these kind of projects kind of fall through and so I just would be curious to I guess see where this one goes. Any
other comments? Those in favor signal by saying I. I. Opposed? That motion does carry. Item 5.4, Highland Apartments Addition Development Agreement. Mr. Nisley. All right. Good evening, counselors. Um
this is to offer a resolution to wave the reading approving a development agreement with Highland Apartments of Newm LLP. Um the preparation and approval of a development agreement is a requirement in order to reszone the subject property from agricultural open space AOS to
multifamily residence district R4 uh um to plan unit development district number two. Um approval of the development agreement would facilitate the development of 148 uh units of residential housing. Um the
property is generally located west of North Highland Avenue between 7th North Street and 10th North Street. Um Highland Apartments of New LLP is owned by Steve Keepers. The development agreement covers issues associated with the construction and use of the property
for residential purposes and the construction and development of the extension of the 10th North Street uh segment. The project area will have four lots with four apartment buildings and eight garages. Uh the project is proposed to be
constructed in two phases. Phase one will be the construction of two apartment buildings fronting North Highland Avenue. Each building will have 38 dwelling units. During phase one, the developer will construct a portion of 10th North Street adjacent to the phase one buildings.
Phase two will be the construction of two additional apartment buildings west of phase 1. Each building will have 36 dwelling units. And during phase two, the developer will complete the portion of 10th North Street uh the 10th North Street extension. During that phase, pro
uh project public improvements will include the construction of the extension of 10th North Street, including aggregate base, grading, water uh water man, sanitary sewer main, water and sewer services, curb and gutter, batuminous paving, street lighting, and turf restoration.
Construction of the project improvements uh to is to start uh the summer or fall of 2025. There are a couple of issues to consider for the council. Um the entry into the development agreement will allow the owner to proceed with the construction
of the new residential units. Um and also the agreement authorizes the owner to install public utility and street improvements to serve the project area. There's two other matters in the development agreement uh that we were ask attorney just to address with the
council since they're very uh familiar with those two items. So I believe Robert's on the phone actually right now. Thank you. Hi there, Scott. Thank you, council president, members of the council. Um, two issues to consider um for the council to highlight, I
guess. Um, one would be given that the developer is constructing public improvements on this project, in this case the extension of 10th North Street, we always recommend that cities have security in place so that there are funds available in the event the
developer either does not complete the improvements or does not complete them to the city standards. In that case, there would be a procedure for the city to make a claim on the security and fund the completion of those improvements, just the public improvements, not the
private approvements associated with the project. Um, but complete the public improvements uh with the funds dedicated in the security. We typically do that in cases like this by uh requiring the developer to provide a letter of credit.
Um that's has in our experience been the best way to uh provide a source of funds for the city when the developer is the party entering into the construction contract with the contractor. In this case, the developer has proposed
to provide a performance bond instead of a letter of credit um and has generally outlined a procedure and series of documents that would appear to be workable and appeared to put the city in essentially the same position it would
be in if it were hiring the contractor and entering into the construction contract itself, in which case it would normally have a performance bond from the contractor assurityity. Um, so that's still a little bit outstanding. The process has been described to us. It's potentially workable. We would need
to review the actual legal documents to see if that form of security would work. Um, so in this agreement, we have the requirement in place that the developer provide the letter of credit for the security, which is the normal approach. And then in paragraph 9b, which is on
page 135 of your council packet, we did put a a paragraph in that would give the city flexibility to accept an alternative form of security if we determined that uh the documents submitted in this case likely a performance bond would provide adequate
protection. So that would be something that would still be submitted. I understand from the developer's attorney that information will be provided once the engineering estimate is back on the cost of the public improvements. So, I wanted to point that out for the
council. And then secondly, uh it's just a request we've made from time to time when the agreement is largely agreed to but still coming together, which is that uh we would request that council approval be made with the understanding that uh nonsubstantial revisions could
still be made after approval. Obviously, if there's something that materially changed the city's rights or the party's obligations, we'd come back to council with that. But if we just need to make some technical changes uh to the agreement at any point, we'd like the flexibility to do that. Um so with that,
I'd certainly uh welcome any questions. Um but those would be the two issues for the council. Hi Mr. Scott, thank you. Um in regard like what what do you see as the difference between the performance bond and the letter of credit?
Um, historically on projects we've worked on, letter of credit is the preferred mechanism for the city to make sure that there's a uh pot of funds available to it. Um, that's always in my experience
been required because the city is not the party entering into the construction contract. So, the performance bond really is almost like an insurance policy ensuring the contractor's performance of its obligations under the construction contract. So because the city in this case and in the case with
uh development agreements like this is allowing the developer to install those improvements, it's the developer hiring the contractor to construct the public improvements. The letter of credit was the best way to position the city to be able to make a claim uh against the
security. What's been explained uh to me by developers council and apparently developer has a history of doing this on other projects is that this developer is able to obtain a performance bond that would name the city as a sort of like an additional insured in this case an
addition an additional um oblige under the bond and what's been described would seemingly work and put the city in the same position as if it were getting a performance bond. uh from a contractor who was hiring
itself. Um this is one of those where it sounds good. We need to review the actual documentation, make sure it appears to uh be workable and actually give the city that protection. Um so we've essentially said we're in and the city's sole discretion would if
we get a performance bond that looks like it would be workable, uh the city could accept that. It's not a legal requirement that the city would accept that, but it is a indication and flexibility for the city to accept the developer's preferred form of security.
Thank you, Mr. Scott. And would that come back to council or would that be a staff decision as drafted? That would be a staff decision. Okay. Thank you. Um and then my next question is um you know is it is it a frequent occurrence that developers
developing these types of properties or have you known of any instances with this developer where he's not meeting the standards the development standards for putting in um utilities and other curb that kind of thing? Anything you're aware of or is that a frequent thing that we need to watch for that they
don't they try to kind of um do a less good job when they're doing that kind of stuff? Uh certainly to be clear this is not a specific concern with this developer. Uh this developer has successfully completed projects as I understand in other communities in the state. So these um protections in the
development agreement are not needed because of any concern about this developer in particular. However, we do recommend cities always have security when public improvements are part of the project just because you never know what happens with the economy. um whether a
developer is going to run into some unforeseen difficulty completing the the improvements. I will also note that the uh plans for the public improvements in this case, the extension of 10th North Street and associated infrastructure
would be and I think in fact probably have already been submitted to and approved by the city engineer and they are using a uh a reputable engineering firm to prepare those plans and specifications pursuant to city
standards. So, um, I guess to summarize, it's not a specific concern with this developer in particular by any means. It is a general best practice. Thank you, Mr. Scott. I have no more questions. Any other counselors? Mayor, with that, I'm going to offer a
resolution and wave the reading approving the development agreement with Highland Apartments of New LLP for the property legally described in the development agreement and generally located at 901 North Highland Avenue. Authorize the city manager and finance director to execute the agreement on
behalf of the city, including uh minor adjustments to the development agreement. Second. Thank you. We have a motion and a second. Any additional discussion? Um I did have one more question for Mr. Nisley. Um so this development would
result in 148 units on that property. um had that been zoned slightly different and it would have been homes, what would be the max amount of homes that could be developed on that property? Do you remember? You're allowed if it were to be um R1 or low density according to our comprehensive plan, you could up you
could have up to 12 units per acre. Okay. Property and we had what? Nine acres, eight acres. Yeah, I think uh I'd have to look back at my notes, but uh I think they um ended up with a little over um what was
it? 15 No's approaching the mic. Sorry. It's 9.9 acres. 9.9 acres. So 12 time 9.9. Yeah, I think so. I think per acre they were at about I think it was like 15.9. Okay. Um if I'm not mistaken. And uh that was
um in our high density land use designation. Um if it were low density, they would have been allowed up to 12 units per acre. Okay. So we're essentially talking about a difference of like 27 units or homes somewhere in there. Yeah. Okay. Thank you so much. Any additional
discussion? Director Jorgensson, please call the role. Councelor Christian, yes. Councelor Warma, yes. Councelor Schmidz, yes. Councelor Mack, yes. President Becker, yes. That motion carries. Um item 6.1 under new business is the preliminary official statement for the GO bonds
series 2025. Director Jorgensson, this is the next step in the bond sale. This is what will be sent out to the biders for the bonds um when they go up for sale on August 5th. Thank you. So, I'm going to offer a motion to receive and approve the draft
preliminary offering statement regarding 5,300,000 general obligation bonds series 2025. Second. Thank you. We do have a motion and a second. Any additional discussion? Those in favor signal by saying I. I. I.
That motion does carry. Item 6.2 is the 2024 MSAS project final assessments. Mr. the president city councilors this item and the uh two items following it are just looking for council approval of the final assessment roles for each of the
three projects and those would include the 2024 MSAS surface reconstruction and utility street and alley improvement projects final assessment roles have been uh developed finalized and we are looking to set the date for the public hearing on these three projects for
September 16th at 4:30 p.m. Motion to approve the final assessment role for the 2024 MSAS improvement project and set the public the date of the public hearing on the assessment for Tuesday, September 16th, 2025 at 4:30 p.m. Second.
We have a motion and a second. Any further discussion? Those in favor signal by saying I. I. Motion carries. Item 6.5 is request for tax abatement assistance for River Haven Housing.
Madame President, um each project will need its own action taken for those final assessments as a separate Oh, and I apologize. We we'll read those into the record. So 6.3 was I'll make a motion to approve the final assessment role for the 2024
surface reconstruction project and set the uh public hearing date for the assessments on Tuesday, September 16th, 2025 at 4:30 p.m. Second. Do we still need We still need to read everything into the record. I will read those into the record. U German Street
from Center Street to Third North Street. Madam President, you're we don't need to read those in. We just Yeah, we're just set setting the date for the public hearing. So, okay. 6.4. I'm on 6. Sorry. Um, so we're currently on 6.3. Thank you. Those in favor signal by
saying I. I. I. That motion carries. Now, item 6.4, 2024, utility street and alley improvement project final assessments. There we go. I'll make a motion to approve the final assessment roles for the 2024 utility street and alley
improvement project and set the date of the public hearing for on the assessments for Tuesday, September 16th, 2025 at 4:30. Second. Thank you. We have a motion and a second. Any additional discussion. Those in favor signal by saying I. I. I.
That motion does carry. Item 6.5 is the request for tax abatement assistance for River Haven Housing. Mr. Snow. Sorry. Okay. This uh property is located at 1,800 North Highland Avenue and 1425 to 1625
Milford Drive. River Haven Housing LLC has entered into a purchase agreement with the city to acquire this property. Uh the property is zoned uh planned unit development
number one but it needs to be renewed. Uh the developer is proposing to plat and develop the property with a total of 118 units. It would be a combination of six town
homes, six twin homes, um, six single family dwellings, and then 48 units in two apartment buildings.
Um, Riverhaven and the Newm EDA have both requested tax abatement assistance for this project. Um in the staff report we list the project activities to be financed and
the amount proposed for each. Those are as follows. Uh the first is building improvements. That would be for the project itself and that would uh be an amount not to
exceed $680,000. The street repair would be a total of $300,000. And just a little bit of background about that, um, we have requested that the
developer install all of the services to the twin home and to the single family dwelling at one time. And the process of doing that is going
to um you know require the removal of the batuminous surface or pieces of the batuminous surface um to the point where it makes sense to replace the entire
surface at one time. So that's where the $300,000 comes from. Uh the final is to compensate the NOM EDA $120,000 for the land acquisition funding that
they u provided for the project. So you're looking at a million $100,000. Um, at the present time we have not had an opportunity to review the building plans
with the county assessors department. So, we don't know um how this will uh turn out financially, but that would be the step that we would take once we receive um those uh
documents. We anticipate um you know the start of uh work on the project um sometime uh yet perhaps this year. We also would
retain the consulting firm that we use um to do this type of work to assist us in um determining what these um um financial projections will be for this project.
That would conclude the staff report. One item, Dave, how close can the county get you on that a projection like that on a $23 million project? Well, if uh we receive building plans,
right, you know, that are, you know, sufficient uh uh to issue a building permit. uh we should be able to get uh I would say pretty close. All right. We generally also try to be uh
conservative in our estimates and we also um if they don't produce the required amount of tax revenue then we don't pay it out,
right? You know, we have to receive we we have to have it in hand. just for the general public. I mean, so they understand the tax abatement. They still pay taxes. We only do a portion of it. I want that's a decision that ultimately
is up to the um city council to make is the amount that you want to remit back um to the different bodies. All right. Thank you. Um I see one of the kind in the overview that it's kind of contingent upon the
securing of a construction loan. Do you know where that it could be at with the developer? Um, I'm going to have to rely upon Yeah, at this point they're they're still in that process, but this is just acknowledging that they receive that um
or can go through the tax abatement process just like M andD. Um, and then this will be the first step potentially in being able to draw down the grant that we were uh we received for the project as well. Thank you.
And again, this is just giving us the information. We're not okaying anything. So, I'm going to receive communication from Riverhaven Housing LLC authorized city staff to prepare necessary information to establish a tax abatement program, 1800 North Highland Avenue and
1425 to 1625 Maplewood Avenue Drive. Second. Thank you. We have a motion and a second. Any further discussion? If I can just note that again, this project requires a development agreement and a public hearing. Yep. Thank you.
Any additional discussion? Those in favor signal by saying I. I. I. That motion does carry. Item 6.6, uh, police department towards zero deaths enforcement grant application. Chief Corkert. Hello. Council President, members of the
council. Um I'm in front of you today just asking for authorization to apply for a grant um involving TZD toward zero death which is uh state of Minnesota um program. They have u their overall
mission is to reduce traffic fatalities to zero. They're um just some features of the of the grant. There's no matching obligation involved. Um basically dollar for dollar any payroll that we would incur regarding this program including
overtime would be reimbursed and um this would be for the if we would apply for this it's for 2026 January through December of next year. So if there's any questions I'm certainly willing and I'll certainly try
to answer them. Madame President and counselors, I'd like to authorize the New Police Department to submit a grant application for a toward zero deaths uh enforcement grant from Minnesota Department of Traffic Safety for traffic safety enforcement projects during the period
of January 1, 2026 through December 31, 2026. Second. We do have a motion and a second. Any further discussion? Those in favor signal by saying I. I. That motion does carry. Um thank you. Item 6.7 is attendance at
the 2025 ICMA conference in Tampa, Florida. I'll make a motion to approve city manager Chris Dalton to attend the annual 2025MA conference in Tampa, Florida from October 25th to 29th, 2025. Second. Thank you. We have a motion and a
second. Any further discussion? Those in favor signal by saying I. I. That motion does carry. With no additional business, sorry, missed the addendum. Hold on. Let's go back. I know we got a work session and an addendum. Thank you. Um at this time, I would like a motion to
suspend the rules so that the addendum can be addressed. So move. We do have a motion and a second. Those in favor signal by saying I. I. I. That motion does carry. Our addendum item this evening is regarding licenses and permits. It is a tobacco license and
tree service license renewals for the 2025 2026 year. I'm going to offer a motion the issuance of license renewals for tobacco license for United Auto Station LLC 626 North Minnesota Street and tree service
license for Giza Key Services Incorporated 60650 State Highway 4 Fairfax Minnesota for the period beginning July 16th 2025 ending June 30th 2026 subject to compliance with all city and state requirements. Second.
Thank you. We have a motion and a second. Any further discussion? Those in favor signal by saying I. I I. That motion does carry. And at this point, with no additional business, this meeting is adjourned. We will move into a work session in just a couple of
minutes.