City Council Minutes of November 2, 2015
MINUTES OF THE SPECIAL CITY COUNCIL MEETING
NOVEMBER 2, 2015
Pursuant to due call and notice thereof, a special meeting of the City Council of the City of Saint Peter was conducted in the Library Meeting Room on November 2, 2015
A quorum present, Mayor pro tem Zieman called the meeting to order at 5:30 p.m. The following members were present: Councilmembers Grams, Zieman, Kvamme, Brand, Parras and Carlin. The following officials were present: City Administrator Prafke, City Attorney Brandt, and City Engineer Domras.
Land Purchase From School District #508 – City Administrator Prafke recommended approval be provided for purchase of approximately 54 acres of land owned by School District #508 located along Traverse Road at the price of $450,000. Prafke noted the land would be used for development of a “workforce housing” subdivision to meet the housing needs identified by the City Council and funding for the purchase would be from Nicollet Meadows Tax Increment Financing District capital funds in the amount of $225,000 and the remainder paid at no interest as lots are sold. Prafke noted that the favorable bids received for water and sewer main installation to the site were driving the timeline for the purchase, but cautioned that should the Council decide to stop the project in the future, it would be difficult for the City to not have a financial loss on the project albeit with the purchased land continuing to be an asset. Prafke also pointed out that the draft “design” included in the purchase agreement was a very rough draft and the Council would continue to have input into the subdivision design which would be based on the Building Better Neighborhood concept and include sidewalks. Councilmember Parras asked if the financial numbers for development of a subdivision were getting closer to what the Council hoped for. Prafke indicated that with incomes not keeping pace with infrastructure and construction costs, development of the subdivision is financially more difficult and noted very few communities were undertaking similar projects.
Councilmember Kvamme questioned how much the City would have invested in the project before the first lot was sold. Prafke estimated $500,000 in addition to the land cost and noted the project would be bid in two phases and involve the sale of Tax Increment Financing bonds to cover the infrastructure costs. Prafke also noted that the School District #508 Board would be acting on sale of the land to the City at their meeting following the City’s meeting.
In motion by Kvamme, seconded by Parras, Resolution No. 2015-144 entitled “Resolution Approving Purchase Of Land To Be Used For Residential Housing Development From School District #508”, was introduced. Upon roll call, with all in favor, the Resolution was declared passed and adopted. A complete copy of Resolution No. 2015-144 is contained in the City Administrator’s book entitled Council Resolutions 20.
Traverse Road Sanitary Sewer and Watermain Improvements Bid Award – City Administrator Prafke and Public Works Director Moulton recommended award of the bid for installation of sewer and watermain along Traverse Road to Chard Tiling and Excavating in the amount of $218,814.05. Moulton noted four of the ten bids received were below the Engineer’s estimate of $246,550 and if approved, construction would start immediately and, weather permitting, be done in 10 days or so. Prafke also noted that while the project would initially be funded from water and wastewater reserve funds, the funds would be reimbursed with debt service from a future Tax Increment Financing bond issuance. In motion by Brand, seconded by Grams, Resolution No. 2015-145 entitled “Resolution Awarding Bid For 2015 Traverse Road Sanitary Sewer And Watermain Improvement Project”, was introduced. Upon roll call, with all in favor, the Resolution was declared passed and adopted. A complete copy of Resolution No. 2015-145 is contained in the City Administrator’s book entitled Council Resolutions 20.
There being no further business, a motion was made by Carlin, seconded by Parras, to adjourn. With all in favor, the motion carried and the meeting adjourned at 5:48 p.m.