This transcript follows the City Council meeting for Cannon Falls. Based on the provided list and the context of the dialogue, I have identified the speakers accordingly. [6:46] **Matt Montgomery (Mayor):** Good evening everyone, I’d like to call the August 3rd council meeting for the City of Cannon Falls to order. Can we have a roll call please? [6:55] **Sara Peer (City Clerk):** Bringold? Here. Duncan? Here. [Zimmerman]? Absent. Kronenberger? Here. Lindell? Absent. Montgomery? Here. [Nobach]? Here. [7:20] **Matt Montgomery (Mayor):** Would you rise for the Pledge of Allegiance? I pledge allegiance to the flag of the United States of America, and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all. [7:33] **Matt Montgomery (Mayor):** Okay, approval of the agenda. Is there any conditions or corrections? [7:38] **Council Member Duncan:** Uh, I’d like to add an item to council business about agenda formatting. [7:45] **Matt Montgomery (Mayor):** Okay, so we’ll add that under council business, item C: council agenda format. Anything else? Okay, a motion to approve the agenda with the addition of the council agenda format. [8:05] **Council Member Duncan:** So moved. [8:06] **Matt Montgomery (Mayor):** Second? [8:10] **Council Member Nobach:** Second. [8:18] **Matt Montgomery (Mayor):** Motion by Duncan, second by Nobach to approve the agenda with the addition as we said. All in favor? Aye. Opposed? Carried. Okay, we’ll get right into public hearings. The first public hearing we got tonight is Resolution 2563, certifying unpaid utility charges to be collected with taxes. That is something we do quarterly. Council decided years ago that we would not shut the water off for delinquent water bills but instead we submit the bills to the county to be collected with taxes. That being said, is there anything Jon you want to say? [9:18] **Jon Radermacher (City Administrator):** Okay, they’ll open the public hearing certifying unpaid utility charges to be collected with taxes. [9:25] **Matt Montgomery (Mayor):** Anybody like to talk to the public hearing on that? As I was sitting here, Jon, I was looking through some numbers and correct me if I’m wrong, but you got like 23 or 24 thousand dollars? [9:45] **Jon Radermacher (City Administrator):** 24, yes. [9:47] **Matt Montgomery (Mayor):** And isn’t one of them 10,000? [9:50] **Jon Radermacher (City Administrator):** Yes. [9:51] **Matt Montgomery (Mayor):** Okay, so back to shutting somebody’s water off—and I don’t know who it is and it doesn’t matter to me—but somebody needs their water to be shut off. Not just me, if you know what I mean, Jon. [9:53] **Jon Radermacher (City Administrator):** Gotcha. [9:55] **Matt Montgomery (Mayor):** Is that possibly a—is that a business perhaps? [10:00] **Jon Radermacher (City Administrator):** It’s an apartment. [10:02] **Matt Montgomery (Mayor):** It is? Okay. Well, these delinquent bills have gone way up. I think three months ago it was very little and now it’s like 24,000. Now I’m sure they’re watering their lawns, but that being said... anybody else on the public hearing for unpaid utility bills? Third and final call. Hearing none, I’ll close the public hearing and I’d take a motion to approve Resolution 2563 certifying unpaid utility charges collected with taxes. [10:55] **Council Member Duncan:** So move. [10:57] **Matt Montgomery (Mayor):** All second? [10:58] **Council Member Nobach:** Second. [11:00] **Matt Montgomery (Mayor):** Motion by Montgomery, second by Duncan to approve Resolution 2563. Is there any discussion? All in favor? Aye. Opposed? Carried. Okay, item B, it’s Resolution 2570. It’s approving the establishment of a Tax Increment Financing (TIF) District number 2-10 within the Municipal Development District number two and the adoption of the Tax Increment Financing plan relating thereto. Laura, you want to take that? [11:30] **Laura Qualey (Development Specialist):** Good evening Mayor and Council. The EDA has a project that has presented itself that will get us closer to ticking off a couple different of our strategic goals for the year all in one swoop. Tonight we’ll have a presentation from Mike Bubani representing David Drown Associates and he will be describing the details of the TIF District 2-10. I think that he’ll be able to resolve a lot of the clarity to the cloudiness that’s surrounding the project. With your approval this evening, it will get us one step closer to not only redeveloping the former Cannonball Truck Stop lot but also helping to take part in the affordable housing or some of the housing needs that we have in our community. So with that, I’m going to turn it over to Mike Bubani. [12:20] **Mike Bubani (Consultant, David Drown Associates):** Good evening Mayor and Council, thank you for letting me present to you tonight. So the way I thought I would approach the presentation is to spend just a very brief moment in time talking about tax increment financing in general... [Consultant explains TIF mechanics, the 40% at 60% median income requirement, the "but for" finding, the 26-year term, and clarifies that this is not Section 8 housing]. [33:01] **Council Member Duncan:** So do we—so this TIF money that we're collecting, you know, they're requesting water and sewer hookup, is that how that's getting paid for? Is that part of the seventy thousand public infrastructure? Wasn't that a hundred and twenty nine thousand or something? [33:20] **Mike Bubani:** So it's the SAC and WAC piece, right? So we have a variety of fees that have been waived. Again, if there's public improvement costs, those are eligible expenses within the TIF district. So sewer and water costs would be eligible. And then we already talked about the 70,000 as well. The developer's agreeing to buy the property with cash for 150,000 as I understand it. [34:10] **Matt Montgomery (Mayor):** Okay, now that 10 percent—let’s be realistic—based on the numbers I’m showing you, that looks like a lot of money, 20 grand a year plus if there’s inflation. But again, it’s all a function of what market values actually are. [34:33] **Council Member Nobach:** I know there's been some questions on why we're doing TIF now and we're not 100% sure this project's going to go through. I assume it's because there are multiple steps, but at the end of the day, we don't certify the district until in this case Keller Bartman builds their building, is that correct? [34:55] **Mike Bubani:** [Explains the 90-day state reporting window and that certification won't be requested until next spring]. By waiting until next spring we’ll make sure we capture any value that’s built this year. So 2023 would be the first collection of tax increment. [35:45] **Council Member Nobach:** Okay, so another reason why you would adopt the resolution now as opposed to later is simply because once they get through all the approvals, they want to be able to rock and roll. If we waited to do the TIF later, the project could be held back another six months trying to do the steps that we're taking now? [36:45] **Mike Bubani:** Correct. [37:31] **Matt Montgomery (Mayor):** Okay, open up this public hearing. Anybody want to comment on the TIF project? [37:50] **Diane Johnson (113 Primrose Lane):** Diane Johnson, 113 Primrose Lane. Lots of questions actually. Have we done an environmental study of the ground so it's not complete or completely polluted with the stuff from Cannonball? [38:10] **Laura Qualey (Development Specialist):** Yes, there was a study done before the demolition last year and then they did different soil borings. They just did another pre-construction study that will certify that property is ready for redevelopment. It was a Phase One environmental study. [38:31] **Bob Keller (Developer, Keller Baartman):** Hi, I'm Bob Keller from Keller Baartman. One thing you'll notice in these new buildings is the utilities are not included, but they are sub-metered so you only pay a portion of actual water used. These buildings are built really well with underground heated parking and three stories on top of the parking. [40:40] **Diane Johnson:** I know it's zoned right now commercial business. Looking at that property, I know we need more affordable housing, I’m just wondering if that's the right place to put it. Highway 52 on one side, McDonald's and a liquor store... I would think that maybe we could find a better location. [42:08] **David Olson (Business Owner):** David Olson. As business owners we want the community to succeed and we want affordable housing... The problem is we do not have enough affordable housing in Cannon Falls. Is this the right location for a housing development? Could this project hinder some of the current businesses where it's being located? We really like to make sure that our tax money is going to the right benefits. [44:27] **Bob Keller (Developer):** Demographics have changed. In Red Wing, we've added almost 200 rentals and brought in workers for 3M and others. Younger people don't want to cut grass; older people want to get rid of their houses. Having 79 families in that area will add to the business and environment. Currently, that land generates $2,300 in taxes. By building this, we generate much more that goes back into the community over 26 years. [50:04] **Steve Bauer (Business Owner):** Steve Bauer, I own the John Deere store and the antique store. I think this is a great idea, but it's absolutely in the wrong place. This $2,300 a year in taxes is peanuts. I pay $80,000 a year in property taxes in Cannon Falls. Why put an apartment in a little parking lot? There's more land available. I hope you got some common sense involved in this decision. [52:55] **Doug Rexell (Business Owner):** Doug Rexell, I’m the business right next to it. I’ve owned it for 40 years. This is a business district. My shop works on radiators and diesel heads; we have smells, noises, and lights. What happens when people move in and start complaining about my shop? Plus, the traffic backup by Subway and McDonald's is already difficult. Please pick a different spot. [1:00:19] **Jack Lucking (Resident):** Jack Lucking. Guys, we’d love for you to come to Cannon Falls, but out on that spot? We gotta think of the kids. It is not right to have an apartment building out there. Have you seen the 44 acres for sale on Highway 19? The Cannonball site is not the right spot. [1:01:30] **Don Lanning (Resident):** I came to gather information because there was a profound lack of information offered to the public. You talked about checking off strategic goals, Laura—what are those? And Mike, is the school district losing $900,000? Also, this is listed as low-income housing. We should look for projects that improve home ownership instead. [1:13:54] **Babe O'Gorman (Resident):** Babel Gorman. I owned the house right across the way here. Bill [Matt], you're talking about social media misinformation, but I’m getting more confused. This TIF plan is written for a housing district, but this parcel is commercial property. The planning commission hasn't met to consider rezoning. We should determine land use prior to approving public assistance. [1:23:51] **Peter Beaudet (Business Owner):** Peter Beaudet, I own the liquor store and Subway building. I’m more interested in things fitting into the community. What about Sandstone Ridge? The city owns that. We’ve got a brand new road going through there. Could you move the TIF district there? [1:26:54] **Matt Montgomery (Mayor):** I’d like to make a few comments. I think everybody's in agreement we need the housing. Here is a letter from the Cannon Falls Economic Initiatives... [Mayor reads support letter signed by John Peterson, Keith Myers, Phil Jacobson, etc., stating the project will benefit the south end business district and schools]. [1:30:00] **Diane Johnson:** Is it possible for you to postpone a decision on this tonight so we could actually look at Sandstone Ridge or the east side of town? [1:30:55] **Matt Montgomery (Mayor):** What we’re doing here tonight is approving the TIF finance agreement that’s tied to that specific area. [1:35:26] **Matt Montgomery (Mayor):** Okay, we’ll close the public hearing on the TIF project. The EDA is requesting a motion to approve the TIF agreement 2-10. What is the council's wishes? [1:35:50] **Council Member Nobach:** When I first heard this with the EDA, I shared a lot of your opinions. But what do we do if we turn this down? How long does that lot sit? We’ve got somebody who wants to come to Cannon Falls. I came around through our meetings to be in favor of this. [1:38:38] **Council Member Duncan:** Bob, did you folks look at other potential sites in Cannon Falls? [1:38:45] **Bob Keller (Developer):** We haven't been offered any other sites. People came to us and said, "Would you like to build in Cannon Falls?" [1:43:18] **Laura Qualey (Development Specialist):** This lot has been for sale for quite some time. Where were you guys before? The location is something we really need in this town. Next Monday the Planning Commission has a meeting for the concept plan. Tonight is just the TIF district. I’m in favor of approving. [1:46:28] **Council Member Duncan:** I’m all for the building, but I’m listening to the people here. I would be more apt to approve if it was tied to the project versus the land. [1:48:49] **Council Member Bringold:** I think we have almost no market rate rentals in Cannon Falls. When we have a chance, frankly, I think we should jump on it. I don't see any harm in approving the district tonight. [1:51:06] **Council Member Nobach:** I’ll make a motion to approve Resolution 2570. [1:51:10] **Council Member Bringold:** I'll second that. [1:51:24] **Matt Montgomery (Mayor):** Motion by Nobach, second by Bringold. All in favor? Aye. Opposed? [Duncan: Nay]. The motion passes three to one. Okay, moving on. Consent Agenda. [Mayor reads items A through K]. [1:53:45] **Council Member Duncan:** So moved. [1:53:46] **Council Member Nobach:** Second. [1:54:30] **Jon Radermacher (City Administrator):** Item A is a final pay request for MnDOT project 2506, the Highway 52 roundabouts from 2013. The amount is $10,455.12. It takes eight years to finish up a project, but this wraps it up. [1:56:55] **Council Member Nobach:** I'll make the motion to approve. [1:57:00] **Council Member Duncan:** I'll second that. [Motion passes]. [1:57:23] **Matt Montgomery (Mayor):** Item B is Resolution 2569 for the layout approval for Trunk Highway 19 pavement rehabilitation. [1:58:10] **Jon Radermacher (City Administrator):** We have Mark Tie from MnDOT and Chad Seaman here. This is for municipal consent. The city share is $66,770 for moving street light poles, water valves, and manholes. [2:04:01] **Council Member Nobach:** I'll make a motion to approve Resolution 2569. [2:04:05] **Council Member Duncan:** Second. [Motion passes]. [2:04:47] **Matt Montgomery (Mayor):** Item C, Council agenda format. [2:04:50] **Council Member Nobach:** We discussed moving public input to after official adjournment so it is off the camera and past the meeting. We will gavel out and then welcome the public to speak. This will be uniform across all committees. [2:06:15] **Council Member Duncan:** Second. [Motion passes]. [2:06:53] **Kyle Paulson (Chamber Director):** I have some great announcements. Fall citywide garage sale is September 17th and 18th. Wine and Art festival set for July 2022. Open Air Fair is August 12th with 40 vendors and a sweet corn feed. [2:10:43] **Jed Petersen (Public Works Director):** Biggest thing today was pulling the new eight-inch water main underneath the river by the Third Street bridge. Sewer cleaning is also in progress. [2:12:57] **Matt Montgomery (Mayor):** I’ll take a motion to adjourn. Motion by Nobach, second by Duncan. All in favor? Aye. [Meeting Adjourned]. I’d like to open the public input.