Based on the context provided and the dialogue within the transcript, here is the formatted version with speaker identifications. **Note:** While the provided list of council members contains some different names than those mentioned in the recording (likely due to a difference in the election cycle year), I have used the names as addressed by the Mayor and Clerk (Brax, Folch, Fox, Lund, and Vaughan) while utilizing your provided list for Staff and the Mayor. [0:00] **Mayor Mary Fasbender:** go to statutes 13d .021 and no in-person meeting will be conducted in the city council chambers i think it is important to recognize that using a video conference is different than in person but it is necessary under the circumstances we are doing the best we can to maintain transparency in due process i would appreciate everyone's patience and cooperation as we work through the meeting please stand for the pledge of allegiance i pledge allegiance [0:48] **Mayor Mary Fasbender:** one nation one nation under god under god indivisible with individuals thank you uh roll call uh seeing that this meeting is being held remotely when i call your name please uh indicate your presence council member brocks **Councilmember Brax:** here **Mayor Mary Fasbender:** council member faults **Councilmember Folch:** yeah **Mayor Mary Fasbender:** council member fox **Councilmember Fox:** here **Mayor Mary Fasbender:** council member lifefield **Councilmember Leifeld:** [Indicates presence] **Mayor Mary Fasbender:** council member lund **Councilmember Lund:** here **Mayor Mary Fasbender:** and council member vaughn let the role reflect that all council [1:34] members are present and we do have a quorum council members are there any corrections to the minutes from the regular meeting and the workshop from april 5th and the workshop on april 10th seeing none they are approved today we'll have comments from the audience and for public comments we have options for comments to be mailed prior to the meeting as well as an interactive feature during the meeting for the email comments they have been forwarded to the city council and their receipt is acknowledged please recognize that items not on the agenda will not be discussed this evening we [2:20] ask the attendees use the raised hand feature and they will be invited to speak one at a time i also want to remind everyone that the public comment period is not for intended for extended dialogue is there anyone that would like to wish to speak to the council okay i see no raised hands council members are there any items to be considered okay council i would accept a motion to approve the consent agenda with consideration that number four was taken off prior to the [3:07] meeting it that event has been cancelled i would accept a motion to approve the consent agenda **Councilmember Brax:** [Makes motion] **Councilmember Folch:** [Seconds motion] **Mayor Mary Fasbender:** councilmember brox and councilmember fulch uh at this point uh council do you have any discussion clerk henderson please call the roll **City Clerk Henderson:** what's the member bond can you hear me **Councilmember Vaughan:** yes yes you're gonna be okay okay how about now you're good okay fantastic [3:56] **City Clerk Henderson:** council member vaughn **Councilmember Vaughan:** yes **City Clerk Henderson:** council member lund **Councilmember Lund:** [Yes] **City Clerk Henderson:** coast member brock **Councilmember Brax:** yes **Mayor Mary Fasbender:** mayor fassbender and that motion prevails tonight under awarding of contracts and public hearings we have a resolution to award a contract for the 2021 mill and overlay program for this item we have an introduction by our city engineer ryan stemsky ryan welcome [4:08] **Ryan Stempski (City Engineer):** thank you mayor members of the council our military overlay program is an annual program in which we resurface uh roads that qualify so that's a two inch removal and [4:53] replacement of a new road surface this year we've selected candidate roads we have portions of westview southview 4th street from general sieben to pleasant and old mill court on march 25th the city received bids on this project we received six bids and we received a low bid from the tunis roadways and the amount of 438 874 this amount comes well within our budget of 500 000 um budgeted in our 2021 program the petunis roadways in the past and their uh [5:39] contractor and staff recommends award and the set amount for the 2021 million overlay program that any questions **Mayor Mary Fasbender:** thank you ryan counseling discussion okay if not then i would accept a motion to approve the resolution awarding contract for 20 mill and overlay program **Councilmember Leifeld:** so moved **Councilmember Fox:** i'll second **Mayor Mary Fasbender:** councilmember rightfelt and councilmember fox for the second council do you have any discussion clerk henderson please call the roll **City Clerk Henderson:** once a member vaughn **Councilmember Vaughan:** yes **City Clerk Henderson:** council member [6:27] fulch **Councilmember Folch:** yes **City Clerk Henderson:** what's the member life belt **Councilmember Leifeld:** yes **City Clerk Henderson:** [Councilmember Lund] **Councilmember Lund:** yes **City Clerk Henderson:** councilmember brock **Councilmember Brax:** yes **Mayor Mary Fasbender:** mayor fassbender yes and that motion prevails tonight we also have a resolution with ryan to let us know about the contract for the sewer lining program **Ryan Stempski (City Engineer):** yes thanks mayor remember the councils members of the council our lining program for the sanitary sewer system we combine our budget so that's a program that occurs every every other year so we do it in a two-year cycle we do it in odd years and so in 2021 we have our sanitary sewer lining [7:13] program this year we selected sewers that basically are repeat offenders for excessive cleaning and and maintenance of old clay pipe and we have a budget amount of sorry 332 000 um to address this work on april 1st we received four bids for this work with a low bid from his in situ form uh their bid their total bid amount was 272 thousand dollars eight seventy two thousand eight hundred fifty five dollars and ninety cents so we're well within that budget amount of three hundred thirty two thousand in situ form um has done work in the [7:58] city in the past they come highly recommended as a competent contractor in this field of work and so with that staff is recommending award to institute form and their low bid amount answer any questions the council may have **Mayor Mary Fasbender:** thank you ryan any discussion counsel i would look for a motion to accept a resolution receiving bids and awarding contract for project 2021-2 2021 sanitary sewer lining program **Councilmember Fox:** mayor i have a question did you talk about if this contract is awarded tonight what the timeline is for [8:45] this project **Ryan Stempski (City Engineer):** council member brocks we a little unique um we have some lining proposed over the golf course seriously dakota pines golf course um and we work with the grounds keeper out there to do the lining work um with you know dragging equipment and vehicles over portions of the golf course in frozen conditions so we don't want to be out restoring golf course area obviously through our easements that we have in the golf course the contractor anticipates mobilizing when the ground is frozen so that's probably december maybe january um it'll be at the end of the year [9:31] so they can come mobilize and get all the project done in one shot and adhere to our city specifications that the golf course lining work be done on frozen grounds so um it'll be a while yet and and we will definitely have a precon close to that start date and get all our um notifications out to the impacted properties at that time **Councilmember Fox:** so it'll be a little bit of a lag right because my neighbors will be asking me because it's gonna go right in front of our house thank you yeah questions [10:12] **Mayor Mary Fasbender:** i will accept an emotion **Councilmember Brax:** [So moved] **Councilmember Folch:** [Second] **Mayor Mary Fasbender:** and seconded by councilmember fulch additional discussion council clerk anderson please call the roll **City Clerk Henderson:** call to member vaughn **Councilmember Vaughan:** yes **City Clerk Henderson:** council member folch **Councilmember Folch:** yes **City Clerk Henderson:** council member fox **Councilmember Fox:** [Yes] **City Clerk Henderson:** councilmember lyfeld **Councilmember Leifeld:** yes **City Clerk Henderson:** council member lund **Councilmember Lund:** yes **City Clerk Henderson:** council member broxs **Councilmember Brax:** yes **Mayor Mary Fasbender:** may or fast bender yes that motion prevails okay ryan for this item we'll have uh you to let us know about these proposed special assessments for 2020 infrastructure improvements and this is a public hearing with [11:05] potential action by council **Ryan Stempski (City Engineer):** thank you mayor can i get the ability to share my screening it looks like i'm disabled... [Sharing Screen]... all right can everybody see that? yes great yeah so as mayor was uh introducing this item for 15th street our improvement phase two of improvements we're at the point in the process to conduct our assessment hearing for the project again just a quick reminder this is the continuation of our reconstruction program off 15th street we're picking up at pine and extending those improvements to pleasant as we discussed last month in our scope of project improvements the total project cost is estimated to be 3.8 million dollars that is that funding breaks down as you [12:24] see in the pie chart here about 1.1 million dollars in bonded debt 150 000 in state aid count support the 581 850 is proposed in project assessments and 30 000 and from the wastewater fund and approximately 800 000 from our water fund so to determine the assessments uh we have a process that we follow the first uh step of that assessment rate... [13:17] **Dan Wietecha (City Administrator):** Ryan, real quick, you're not here you're sharing your screen we're not seeing advanced slides **Ryan Stempski (City Engineer):** is it advancing now? i see the assessment rates... [13:57]... can we see that dan? was assessment rates now it's results of assessment report back to assessment rates it looks like it's working now okay i was trying to keep it in presentation mode but for some reason it's popping me out so hopefully everybody can see just fine we'll just continue along this way so as i was saying the first step in determining an assessment rate is the city does hire an independent firm to prepare an appraisal report that appraiser looks at the land valued before and after the proposed street improvement the difference between the before and after values is the special benefit [14:44] attributed to the private property along the corridor we did hire brtw to do that that appraisal report we've worked with them several times in the past the results of the appraisal report um the appraisal firm determined reasonable valuable our value benefits range of 89 to 99 per foot for a small single-family lot averaging 70 feet of frontage along the corridor about 73 to 83 dollars a foot for the medium sized properties averaging 95 feet and front footage along the corridor and then 77 to 87 per foot for a large single family lot um [15:31] averaging 150 feet of frontage along the corridor for calvary christian church property that was evaluated at 44 per foot now the church property there you'll see a little bit lower rate because they have 459 feet of frontage so the assessment is valued um across the entire property and so with with such a large frontage that's why that cost per foot breaks down to be much less than what you're seeing on the single family lots that was what the assessment report yielded we continue on with our policy our [16:18] ordinance directs that corrector collector and municipal state aid streets are assessed at 25 of the project cost of the street and storm sewer that assessment then is based on a budding frontage there are a couple exceptions and that is if we have an irregular shaped lot we do normalize those lots by looking at their namery properties and finding a comparable and fair um associated lot size and frontage and then also corner lots we do allow for a break if you will uh corner lots since they have two sides the short side is calculated 100 of the length while the long side is calculated at only 25 of the length to kind of give those [17:04] corner lots a break so the recommended assessment rates is the calculation of 25 of the street and source sewer costs distributed across the properties these amounts were confirmed by brkw to be less than or equal to the special benefit of the improvements to the properties being assessed so basically we're at or below that amount when we ran this ordinance driven calculation process was presented and supported by the operations committee the council and so that gets us to a single family lot rate of 66. and 48 cents per front foot and then for our church property that 44 [17:52] per front foot the payments of assessment is quite a process but basically it would send out um an official statement in the fall time or end of summer and payments would then be accepted beginning october 1st 2021 no sooner than that partial payments are accepted in this process any amounts that remain after the november 30th date are certified certified automatically to the dakota county property taxes with that 50 50 fee to do so there are no interest or fees when this assessment amount is paid in full [18:37] and that needs to be done by that november 30th date um if they are not paid in full then the 10-year payoff for the property tax statement starts beginning spring of 2022 and then the interest rates for that financing typically range between three percent and five percent in recent years we've kind of been at that mid three percent so to just kind of give an example um picking the medium-sized lot at 95 feet of frontage the rate would be calculated at 95 feet times 66.48 cents that gives a 6 315 approximate assessment amount so when [19:24] that's paid through the county property taxes that would be 6 315 divided by those 10 installments that would be 631.56 annually plus that three percent interest for that first year would be 221 obviously that amount decreases so the interest decreases each year thereafter but in that first year the total annual installment would be 853 um breaking that down monthly that's about 71 dollars a month which is kind of important if you're paying a monthly monthly mortgage to kind of figure that in your payment and then we do on this project have [20:10] financial aid um with assessments we do have assessment abatement again this year we set up the project specifications that way to accept this financial aid the community development block grant or cdbg program is funded by the federal government it is a program dependent on an income qualification so that's a that's a reviewed application the applications in the process to follow them are mailed out to all property owners in late summer of 2021. patients are very clear on the application but they are to be returned to dakota county community development agency or the cda they review the applications the city staff does not [20:56] and the also qualification is determined by the cda there is a full abatement qualification so that would be your entire assessment amount would be paid if you do qualify and then for any amount left over thereafter there are options for partial abatement if you qualify as well so with that um i'll turn it over to any questions or discussion and then ultimately um allow the mayor to conduct the public hearing **Mayor Mary Fasbender:** thank you ryan uh council do we have any questions for ryan **Councilmember Folch:** your honor thanks um thank you your honor so ryan i just had a couple technical questions so when i was looking at our packet for all of the assessments it looked like they ranged from about forty nine hundred dollars to maybe ten thousand three hundred dollars and so what was the average assessment amount that was going then to property owners with those kind of outliers you had said that the average monthly bill was 71 per month i was just curious what would what's the average total assessment **Ryan Stempski (City Engineer):** i would say i mean it ranges in that four to five thousand dollar range five thousand well yeah most of them are at least five to six thousand on the yeah [22:33] for medium lots it's that six thousand dollar range so it depends on that frontage obviously **Councilmember Folch:** okay and so when you say that um if you don't have the money to be able to pay it so it's a 10-year term and so does the city float or finance that money over the 10 years or is there a third party vendor that takes over it and it's kind of like a loan process **Ryan Stempski (City Engineer):** the no the city gets repaid that amount over 10 years so but we're directly dealing with it so the city always is on the hook for that money and then we're assessing it over the 10 years there's not an intermediary like a third party bank or something like that in between i don't believe so no [23:21] **Councilmember Folch:** okay and then is there anything that limits what it can be what can be included within a property assessment like for instance we've talked in the past about the problem of the ash trees that are in the right of way and then whether or not they should be or could be removed at the time of a neighborhood infrastructure project so that you could then you know remove it in the stump level the earth put in the new sidewalk and have a nice fresh right of way would that be potentially something that we could be doing where we could be handling the removal of additional trees as we're going along in these projects that limits us from not being able to do that [24:08] **Ryan Stempski (City Engineer):** i would say what's limiting is is the policy set i what we do from an engineering standpoint is if those trees we walk the trees are you know the corridor with our city forester we look at the construction plans if construction um requires those trees to be removed and i think we do have you know five or six of them proposed because of construction they're already incorporated in the project because of the construction need and the cuts that we have um obviously if we're cutting one side of a tree and our city forester says well that is beyond treatment um we're not gonna leave one side cut and hope it you know comes back we'll take the whole tree so that's that's where we work in [24:54] coordination with the city forester in our construction program um to take those ones now if there's a change in policy um you know that's that's a different animal and and we're not set up to do that that'd be something we have to be directed to do and and follow that process i don't think we have very many ash trees um in the inventory on this corridor so i i i don't think this is a a project that that has very many you know suspects of of eab they're not dense in that area i get it along the right of way but it is something that could potentially be incorporated **Councilmember Folch:** and then um and then like so like for instance it's my property [25:40] and i have a i have an ash tree in the right of way can you um can you attribute that tree removal um against my personal property or would that just kind of like go into the the overall project cost for it all and then going on your formula based and then it gets divvied up that way **Ryan Stempski (City Engineer):** yeah if it's not related to the construction um that expense we don't have a mechanism to roll it in the project costs or the assessments no at this very moment correct [26:21] you could i don't know um keep in mind our assessments are determined by that value added to the property um i'd have to have a conversation with you know several appraisers to see where that rates there might not be um any associated benefit of removing a tree um you know some people would think the con you know the contrary right so that would be a question for our appraiser to see how that would factor in but it could that question could be asked **Councilmember Folch:** thank you very much ryan for answering my questions i appreciate it **Mayor Mary Fasbender:** any other council discussion at this time i will open the public [27:08] hearing in the audience if you would please use the raised hand feature and i will bring you in for your questions the public hearing is open anyone has any concerns or questions please use the raised feature seeing no raised hands at this time i will close the public hearing and counsel discussion any additional discussion okay then i would accept a motion to approve a resolution to adapt the assessments for project 2021-1 15th street infrastructure [27:55] improvements phase two [Music] **Councilmember Folch:** [So moved] **Councilmember Leifeld:** [Second] **Mayor Mary Fasbender:** additional discussion person please call the roll **City Clerk Henderson:** once the member vaughn **Councilmember Vaughan:** yes **City Clerk Henderson:** council member folks **Councilmember Folch:** yes **City Clerk Henderson:** council member fox **Councilmember Fox:** yes **City Clerk Henderson:** council member lifebelt **Councilmember Leifeld:** yes **City Clerk Henderson:** councilmember lund **Councilmember Lund:** yes **City Clerk Henderson:** councilmember brock's **Councilmember Brax:** [Yes] **Mayor Mary Fasbender:** mayor fassbender yes that motion prevails [28:39] i have a public hearing also for the code amendment for the parklets this item we have um introduction by community development director john hinsman welcome john **John Hinzman (Community Development Director):** city council members tonight we've got a public hearing and second reading for a small amendment to our parkwood organs the council may be asking we just adopted a parkland ordinance not too long ago what are we looking at amendments already i'll get to get to that here in just a second i will share the screen which will explain what we have what we're looking at here today what we're looking at amending is the distance setback between the center line of of angle parking areas this is second street for example [29:25] right now within our code we have a 20 foot minimum setback requirement from the center line to the edge of the parklet this works out really well if you have an 18 foot long parklet that is parallel with the angle parking line which would be 16 feet back at this point however what we're seeing from a couple individuals is that they are not proposing to situate their parkway in such a manner but instead do take the 18 feet straight out taking it 18 feet straight out limits that area from 20 feet down to 18 feet so we had a conversation with our public works director and other city staff to see if this would be amenable they were amenable to it however they did state that this would be something we would monitor [30:11] over time here we believe that we're comfortable with the 18 feet and recommend the change as it moves forward tonight but this will be something we'll monitor throughout the summer and hopefully this is something that can continue so we have an ordinance amendment before you tonight this does have a public hearing component to it and you may open it at this time or i can stand for any questions again this would be the the only amendment to the parkwood board it would be this distance thank you **Mayor Mary Fasbender:** hey thank you john time i will open the public hearing for the amendment and please use your raised hand feature and bring you in for any questions or concerns caring is now open [30:57] seeing no raised hands at this point i will close the public hearing and ask counsel for any discussion [31:14] nothing so then counsel i would accept an emotion to approve an ordinance of the city of hastings amending city code chapter 90 streets and sidewalks section 90.17 barclays **Councilmember Vaughan:** uh some movement **Councilmember Leifeld:** i'll second that **Mayor Mary Fasbender:** and council member light fault additional discussion council please call the role **City Clerk Henderson:** codes of member bond **Councilmember Vaughan:** yes **City Clerk Henderson:** council member fulch **Councilmember Folch:** yes **City Clerk Henderson:** councilmember fox **Councilmember Fox:** yes **City Clerk Henderson:** going to member leifeld **Councilmember Leifeld:** yes **City Clerk Henderson:** councilmember brock's **Councilmember Brax:** [Yes] **Mayor Mary Fasbender:** mayor fassbender [31:59] yes and that motion prevails uh council we have a public hearing tonight for a parklet and a liquor license amendment for the onion grill 100 sibley street john you want to continue **John Hinzman (Community Development Director):** thank you mayor and city council members tonight a public hearing for a parklet as the mirror pointed out here for the onion grill i'll put some images on the screen to show a little bit more of what we're seeking here this is the onion grill in sibley street here this area here is the parking spaces these are parallel parking spaces a little bit different than 2nd street so these are a little bit shorter the fencing would go around as such for [32:45] about 42 feet and then back up next to the building at this location it would not go beyond the curb it would roughly be similar dimensions to what we saw last year albeit a really good nice job at what they're doing for the amenities they're preparing for this one here so that is what we're looking at the distance between the parklet and the center line meets that 14-foot requirement for parallel parking that we did establish within the ordinance this is what it would look like here so it would be at the street surface have some decorative planters at this location and fence demarcation so a really nice addition down here you can see this is the roughly extensive it as well uh so you would still have the [33:30] passenger traffic excuse me the pedestrian traffic along the sidewalk that would still be able to move through that would not be routed around like last year so pedestrian traffic continuing through here we did have our staff review this uh they are supportive of it and uh this is a public hearing you could open it at this time or i can stand for any questions thank you **Mayor Mary Fasbender:** okay thank you john at this time i will open the public hearing please use the raised hand feature and i will bring you in if you have any questions or on this time this is the public hearing for the onion grill see no raised hands at this time i will close the public hearing [34:15] and any discussion council **Councilmember Lund:** meland you're unmuted is that oh sorry um i'll be abstaining out of an abundance of caution on this one **Mayor Mary Fasbender:** but another council discussion council i would accept a motion to approve the parklet and the liquor license amendment for the onion grill **Councilmember Folch:** [So moved] **Councilmember Brax:** [Second] **Mayor Mary Fasbender:** council member fultz and councilmember brax with a second additional council discussion **Councilmember Fox:** clerk oh council member fox record against military **Councilmember Lund:** i will also be abstaining from this [35:01] vote **Mayor Mary Fasbender:** okay so please call the roll **City Clerk Henderson:** vervon **Councilmember Vaughan:** [Yes] **City Clerk Henderson:** number bulge **Councilmember Folch:** yes **City Clerk Henderson:** number five statement please remember life else **Councilmember Leifeld:** yes **City Clerk Henderson:** comes the member lund **Councilmember Lund:** abstain **City Clerk Henderson:** comes member brock **Councilmember Brax:** yes **Mayor Mary Fasbender:** mayor fassbender yes and that motion prevails five to zero with two abstaining council member fox and councilmember one john okay tonight's under community development we've already handled [35:46] the second reading and we've also handled the issuance of parklet and liquor license for the onion tonight we also have a resolution to transfer property to hedra quality one woodworking enterprise avenue and 31st street john would you like to focus on that **John Hinzman (Community Development Director):** absolutely mayor and city council members i'll share my screen to show you what we're proposing tonight this is quality one woodworker woodworking in the industrial park millard avenues to the west 31st street to the south the red area represents their current holdings here they have a large factory building shown here and they're proposing to make it even larger which is great [36:32] they propose a 50 000 square foot edition shown in yellow this is something that has been proposed by quality one for quite some time here and we're eager to see this move forward with this moving forward there are two properties that would need to be acquired to make this project happen the first one being about a 1.8 acre property located here this is that 31st in enterprise avenue reason for the acquisition here is for some truck trailer parking and storm water drainage that would be necessary to accommodate this property you may recall that there's truck docks right now in this location they would be moved down and there's additional spaces needed here the other would be a small property here about .23 acres that would need to be acquired to extend [37:19] a roadway which is a connection point to serve their dust collector units which are located here so these two properties here are owned by the city as part of the industrial park and we're proposing that they be transferred to hedra this is similar to the actions we had a last meeting related to hedra being a more correct authority to be able to provide uh provide for economic development and uh for the subsidies of land for development and so this would be the action we have on the resolution is to transfer this property to hedra and then for hedra to ultimately enter into a development agreement with quality one to transfer the property there'd be preconditions of that agreement related to [38:06] site plan approval and other entitlements before that occurred and it's also subject to our land credit program council may recall that in the industrial park we do have a program that writes down the amount of price that we charge for property depended on the value that's added and the jobs that are created in this one the property value itself is about a hundred and thirty six thousand dollars between both properties when you take a look at what's being added from this property about 3.5 million dollars in improvements 35 jobs the credit far exceeds the amount of the land so they would transfer this we would transfer this property for a dollar so the actions we're asking for you tonight is to authorize both these within the attached resolution the transfer of property to hedra [38:52] and the approval of the land credit sale on this all right what else we've got in the property this has an idea of what it would look like the proposed edition being here additional parking areas and then a view of what the building would look like you can stand for any questions that you may have i also will note that we do have representatives from quality one of the audience tonight if you have any questions for them thank you **Mayor Mary Fasbender:** john counseling discussion [39:24] this is a great addition to our industrial park especially with the jobs as well so um could i get a motion council to for a resolution approving the transfer of real property to the hastings economic development and redevelopment authority and approving land credit sale to quality one woodworking llc **Councilmember Brax:** [So moved] **Councilmember Folch:** [Second] **Mayor Mary Fasbender:** council member brock's second council member fulch additional discussion council clerk henderson please call the roll **City Clerk Henderson:** hover bond **Councilmember Vaughan:** yes **City Clerk Henderson:** council member fulch **Councilmember Folch:** yes **City Clerk Henderson:** council member fox **Councilmember Fox:** yes [40:10] **City Clerk Henderson:** council member life bell **Councilmember Leifeld:** yes **City Clerk Henderson:** council member lund votes member brock **Councilmember Lund/Brax:** [Yes] **Mayor Mary Fasbender:** mayor fassbender yes promotion prevails can i have another resolution to transfer property to hedra miller electrical enterprise avenue and spiral boulevard john **John Hinzman (Community Development Director):** mayor city council members we've had some good activity within the industrial park so another proposal before you tonight i'll share my screen to show you what we're looking at this is a property located at the southeast corner of spiral boulevard and enterprise avenue miller electrical which is located here proposes to purchase this property to [40:57] build a 17 000 square foot office warehouse building the actions on this are similar to the last request which is the authorized transfer property to hedra and hedger would enter into a purchase and development agreement with miller electrical to transfer that property that would be per the land credit calculation and also per use entitlements for site plan and other city council actions which would come forward into you in the near future when you look at the property here you may ask why are they looking to build a new property uh miller electrical recently changed hands about a year or two ago the new owner bought the business uh but the the firmware owner retained [41:43] the property the new owner desired to build a new building for his business and anticipates growth that would occur when you take a look at the property and the plans itself these are some concept plans that were drawn up it shows the building over here about 17 000 square feet and hopefully some potential future additions to the south of uh comparable size this is an example of what he has brought forward to show what the building would look like in the future so nice type of construction so tonight what we're asking for you to do is to authorize transfer of the property approve the land credit sale the land credit sale on this one similar type of valuation about 134 000 1.5 million dollars in improvement so that land credit exceeds the value of the [42:30] land so it will be transferred for one dollar so i can stand for any questions that you may have thank you **Mayor Mary Fasbender:** i'm counseling any discussion for john jones and i would accept a motion to approve a resolution of proving the transfer of real property to the hastings economic development and redevelopment authority and approving land credit sale to miller electric llc **Councilmember Fox:** [So moved] **Councilmember Vaughan:** [Second] **Mayor Mary Fasbender:** council member fox in the second by council member bond additional discussion council then please call the role **City Clerk Henderson:** member vaughn **Councilmember Vaughan:** [Yes] **City Clerk Henderson:** once a member fulch **Councilmember Folch:** yes [43:16] **City Clerk Henderson:** councilmember fox **Councilmember Fox:** [Yes] **City Clerk Henderson:** councilmember lifo **Councilmember Leifeld:** [Yes] **City Clerk Henderson:** council member lond **Councilmember Lund:** yes **City Clerk Henderson:** council member broxs **Councilmember Brax:** yes **Mayor Mary Fasbender:** mayor fastbender yes all right tonight we also have an authorization to consider of the city charter and ordinance administrative citations for this item we will have john continue **John Hinzman (Community Development Director):** okay thank you mayor and city council members tonight we'd like to bring before you a concept of a change related to nuisance ordinances nuisance ordinance or those type of code enforcement violations [44:02] dealing with property issues things such as junk abandoned cars exterior storage property maintenance under the current regulations we have these are criminal citations so what we hope to have happen is we mix a property when you're aware of something they take care of it and problem solved and that happens in most cases however when you have a situation in which there is some reluctance among the property owner to take care of a violation it runs through the criminal court system the criminal court system is not the best fit for these type of violations they're not a high priority for the criminal courts they can take a long time the results generally are going to be a small fine these generally require maybe multiple [44:49] hearings and each time a hearing takes place an updated inspection needs to happen so we have a lot of back and forth between our code enforcement staff checking on properties as they move through courts the result of that being a small fine and not the best situation so we we took a look at this with our city attorney corey land corey has developed a process in which code violations would not be handled criminally but will be handled administratively and there would be a couple of changes that would be necessary to do that first of all why would this take place and what are the advantages from an administrative standpoint you're able to directly assess a violation to take care of the [45:36] time that has been put in by city staff to take care of it which is something we can't do criminally when we look at this administratively we're looking at taking forward this forward through an administrative law judge and this is more of a negotiation the uh the results of that have been more fruitful have been more timely and so uh this is something that we would like to consider doing we talked we took this concept forward to the historic preservation committee of city council explained it to them they recommend that we move forward in looking at changes at their meeting to be clear what we're looking for tonight is not any adoption of anything we're looking for your direction as the council to proceed [46:21] we want to make sure before we take the time to amend the city charter and put together proposed ordinance amendments for this that we had the the support of the council of doing so so i know there would be a lot of questions that would be coming up that we probably don't have the answers to right now the specifics will come up at a later date but the action we're looking for you tonight to consider is uh to have staff move forward to prepare these amendments for your consideration and uh corey who was the the the person that knows much more about this than i do is also available for questions you have specifics as well thank you **Mayor Mary Fasbender:** thank you john a council discussion any questions for corey or john at this point [47:07] **Councilmember Leifeld:** yeah thank you your honor john so just to try and follow along we get a nuisance call council we contact go through staff with the code enforcement staff then handing out that one that we're dealing with weeds and trash in the yard they just don't ever seem to care it just every year it's the same thing if this little fine that we're talking about isn't driving them to clean up their messes um is this something that you feel aside from that back and forth you talked about would this give us more of a position of [47:55] mine and making sure that things are actually done i guess i i've never had the issue myself but if someone were to turn me in and i didn't do it i pay my fine then do i have to do it or do i not have to **John Hinzman (Community Development Director):** start out here and maybe uh corey can add to it through her experiences the one thing that i've learned is that from a timing standpoint it's a much shorter process and so that that's advantageous the difficulty always in code enforcement is that fine line between you know a person's right for due process and the anticipation of conformance with the code violation and i think this this works out to be a more timely process than uh than the criminal procedure and corey if you [48:42] have anything to add to that **Corey Land (City Attorney):** i do thank you your honor members of the council so typically and i don't know the exact specifics of the situation you're talking about but when city staff code enforcement gets frustrated enough they will issue the criminal citation that then triggers a whole different process and it is very time consuming it is very lengthy and in the end not very satisfying so my understanding is that you don't typically abate things like weeds which you could administrative citations is just another tool in the in the toolbox for you so if you feel like for those really problematic people that sometimes the only way to get their attention is a criminal citation [49:28] you still have that option if you feel like there are those situations like weeds where the city can simply go on and abate the nuisance for them you have that option if you feel like for the junk where you don't necessarily want to go and take people's things and clean it up for them because sometimes since trash is another person's treasure and so you do have to be a little bit careful about that then you can issue an administrative citation which then does impose a fine if they pay it they still have to clean it up so that doesn't alleviate the burden of them cleaning it up every day is a new violation so they could be cited again and the second time they don't have to be given notice [50:13] because they had notice they knew the problem was there and they chose not to clean it up so the second time the fine doubles have to be given notice if they fail to pay then you have like you typically have at the end of every year any water utility bills that fail to get paid you assess those this would go on that assessment role it's added to their property taxes and they have to pay it in a lump when they pay their property taxes it tends to get people's attention these are not astronomical fines that we're talking about it could be anywhere from 50 to two hundred dollars if it doubles obviously it's going to get more than that but it's just enough to get their [51:00] attention that most people recognize they don't want to have multiple fines they don't want to have it added to their property taxes and they will take care of the problem for those that don't you just continue to find them and assess them and at least then you're having cost recovery and if you find that that's just not enough then you can explore other options but those are those are the extreme cases not the normal cases that helps answer your questions thank you very much **Councilmember Folch:** so yes thank you runner um as was mentioned by john the historic preservation committee of the city council did have a discussion [51:45] about this and the group was very supportive of the administration administrative citation process but we did also talk about um having as uh as attorney land was beginning to talk about um abatement uh steps and specifically like for instance mowing if they'd get a weed violation then sending in a vendor to do that to do the mowing and then charging that back and so um so i guess my question for john is um john when is it that you'll be coming back to the council then if we give you the direction that we'd like to go uh towards you know the administrative citations uh what's your process in developing some of these abatement programs then to deal with for instance weeds and then [52:31] junk **John Hinzman (Community Development Director):** hey councilmember i i wish i had a better answer for you on that uh soon uh there's there's a couple of different steps we're gonna have here one is going to be the the city charter itself so we're going to we call i recall we're going to reform the the city charter commission because in order to have the authority to grant administrative citations there needs to be an amendment to the city charter which is our city constitution so there's that step of it that's done then there is the the city ordinances it doesn't mean that they can't uh they can't happen concurrently on that but those are two steps and the the city charter amendment has its own peculiarities to it so if we get the [53:16] authority from the council tonight we'll start work on both those items uh one of them is more administrative and procedural the other one is much more substantive and that is looking through our specific code at our violations and what amendments would be necessary and i i do know that our building official uh travis dunn and code enforcement officer don west are already beginning that process so we hope to have something in the near future council member your questions counsel **Mayor Mary Fasbender:** okay then i would accept a motion to direct staff to prepare amendments to the city charter and city code to consider regulation of nuance violations through the issuance of administrative citations **Councilmember Fox:** [So moved] **Mayor Mary Fasbender:** member fox additional discussion clerk henderson please call the role **City Clerk Henderson:** member vaughn **Councilmember Vaughan:** yes **City Clerk Henderson:** council member bulge **Councilmember Folch:** yes **City Clerk Henderson:** council member fox **Councilmember Fox:** yes **City Clerk Henderson:** council member life bell [54:35] **Councilmember Leifeld:** yes **City Clerk Henderson:** council member lund **Councilmember Lund:** yes **City Clerk Henderson:** councilmember brock's **Councilmember Brax:** yes **Mayor Mary Fasbender:** mayor fassbender yes and that motion prevails okay also tonight we with john we have a resolution to authorize sale of hedra property to luke siebert john you may continue **John Hinzman (Community Development Director):** thank you mayor and city council members i'm gonna share my screen here to show the property that we're looking at here tonight this is a small parking lot about 9 700 square feet that is owned by hedra as you can see the the parking lot itself doesn't have a lot of value today because we put a great big parking lot over here a few years ago about a hundred spaces [55:21] this was originally purchased by the hra back in 1985 they were the predecessor of hedra to provide downtown parking for general use and also for the mississippi terrace senior housing across the street those items are no longer necessary for this over the years we've been approached by a couple of different entities to purchase this property in conjunction with the house next door there's a duplex next door and development has been considered here this is happening again here with seaward luke has purchased this property here and what he would like to do would be to combine both properties clear the properties and build a 31 unit apartment building this would be a three-story apartment building three stories over a ground floor of parking that would be at grade [56:08] and we've had several discussions with hedra over the past few months as to this proposal hedgerow is the property owner would need to authorize sale of it and when we consider sales of property we take a look at a couple of different items on that one the need for the property it's need for the property by hedra in this case we don't have a particular need for it anymore that has been supplanted by the parking lot second market value we have an assessed valuation of the property itself which is about sixty thousand dollars and um we've discussed that with mr c where as as a starting point for purchase uh mr seaworth has looked at his property wanted to acquire that property for a lower price [56:53] so in that situation it would be a subsidy in looking at subsidies what we do is take a look at what the need for the subsidy would be we had mr seaworth share with northland financial advisors his financial information and his pro forma for development of the site so northland took a look at that uh b was able to uh to review some items uh but not all items uh there was one item particularly related to the uh the approval of the financing for the site that mr seaworth has not yet achieved he has some commitments from a bank but we don't have the official bank commitment letter yet which is something northland requires in order for them to give a an opinion [57:39] as to whether a subsidy is justified or not uh granted the prelim the information that mr seawood has provided does justify a gap and a need for that but our financial advisor cannot make a recommendation on that so this is something that we've been going back and forth with pedro over the last few months on it and one of the other things that is under consideration from a a filling a hole in a project is also doesn't meet some of our our business subsidy requirements our goals and benchmarks as hedra and within your packet i listed a few of these there's about 10 of them all together that we look at that projects in which hedre is involved in a subsidy should meet these requirements uh we [58:25] feel that there's about four of these that it does meet does increase the tax base it encourages redevelopment and development investment in what we determine a city designated area it encourages the reuse rehabilitation of historic properties uh and it eliminates substandard buildings or gliding conditions so we believe that it meets some of these requirements or those requirements that are listed as reasons why hedra is involved in subsidies for property with hedra we reviewed this on a number of different occasions we did review this at our last meeting on april 8th they did recommend approval of this on a five to two vote to recommend approval of sale this property for [59:10] one dollar they looked at the rationale for doing this consistent with the the four reasons that i just listed for the business subsidy criteria that's what we're bringing for you tonight this is a situation in which hedrah does own the property however within the powers that you've invested into hedra you've reserved for yourself the ability to say yay or nay to any property sales and so what we are asking for hedge or for the council tonight is to authorize hedra to sell the property to the developer the terms of that would be for one dollar now what would happen at this point is hedger would enter into a purchase and development agreement for the property and would set the terms for the transfer [59:56] which would include the land use entitlements for the property uh in other items so that we're not transferring the property until we're we're very certain that the development will take place so that's what we're asking for you tonight pictures of the property this uh some images of what the property would look like itself three-story apartment over ground floor uh garage space here we believe it would be a nice addition to the downtown area and i can stand for any questions that you may have and okay i didn't stop screen sharing good and i believe uh mr luke stewart's in the audience as well if you have any questions for him thank you **Mayor Mary Fasbender:** thank you john discussion [1:00:46] **Councilmember Folch:** your honor thank you i think this is really exciting about what's being proposed for the downtown area to have some additional affordable housing options that are down there um so with that said i think it's terrific um i'm a little confused about this issue of you're asking the council to allow the sell for a dollar but it hasn't been approved by and which is our the city's financing arm i guess i'm a little confused as to if if they're not able to make a recommendation as to whether or not this is an allowable expenditure why is it coming before us before that recommendation has [1:01:32] been made **John Hinzman (Community Development Director):** a council member it's an excellent question one that hedre has been struggling with for uh for a number of months here and for our policy and and what we have done with determining subsidies we've relied upon our financial advisor to render an opinion here and so we've gone down that road with them they've been able to provide some preliminary review of the information but because there is not a bank loan commitment secured by mr c word they're unable to render an opinion and so hedra uh was was faced with a similar type of quandary with you know do we take action on this is this premature at this point uh the developer has been adamant that this is something that's necessary [1:02:18] to to move this project along uh through a number of meetings and discussions upon hedrama ultimately it was decided to to move this project forward and sell it for a dollar but very valid question **Councilmember Folch:** oh just to clarify then you don't need a formal recommendation from northland as our financial advisor to move ahead with the sell of the land for a dollar it would just be a nice to have is that what i'm hearing you say **John Hinzman (Community Development Director):** a council member i'd say that'd be our policy i mean i don't believe there's a there's no written rules that say that northland has to or our financial advisor has to and has to render an opinion prior to us taking action it's a best practice that we have in in this situation we would be [1:03:04] foregoing that to uh to move this forward by moving it forward there would be a purchase and development agreement that would be drafted between the city and mr seawort for transfer of the property and certain items that would need to be in place prior to that transfer and one of those would be a bank commitment **Mayor Mary Fasbender:** okay thank you tonight john essentially we're just trying to get a motion to sell the property for a dollar and we will definitely be seeing the next steps moving forward if this if we pass this tonight mayor i think that's a good summary yeah [1:03:51] there's from a power standpoint or council needs to authorize any sale of land that that hedra enters into so we we want uh to get your blessing on that one and then we wanna we want you to to understand the terms of what that sale would be and be comfortable with it and that would be for a dollar so that that would be the action we're asking for tonight and as the mayor pointed out this would be the the first step purchase and development agreement would be entered into and then the the site plan and other land use entitlements would go through planning commission council thank you john for your clarification **Councilmember Vaughan:** council member vaughn thank your honor and counselor folks that's a great question that it's we have a consultant but it's not a requirement [1:04:38] ... [Dialogue continues]