Committee Minutes

MINUTES/FINANCE COMMITTEE
Monday, August 19, 1996 - 6:45 p.m.

Members present: Carpenter, Babinchak, Bakken, Hamerlik.

1. Matter of offer from Robert E. Mutcher, Sr. to purchase City lot at 1310 8th Avenue North.
Howard Swanson, city attorney, stated that Mr. Mutcher had requested that zoning be changed, zoning is B-1 and request is for B-3 but not contiguous to B-3 property, couldn't spot zone the lot; B-3 is higher intensity of use; rezoning could make some property non-conforming. Mr. Mutcher stated there would be less traffic than office building, spent several hours with Planning and they accept drawings if can get property rezoned from 11th Ave.N. to his property. It was noted that there had been some concern re. traffic safety on the part of the committee, sight obstruction by buildings, etc. Mr. Mutcher stated that buildings would be set back far enough off Washington Street so not a problem with snow removal, would have to keep alley open for access, buildings would not create visibility problem. Mr. Carsen stated that B-1 zoning quite restrictive, that the offer of $9200 is 65% of the City's asking price.

Bakken reported present.

After further discussion it was moved by Bakken and Babinchak to send back to the city auditor and city assessor to renegotiate a higher price. Motion carried. (comm. only)

2. Application for 5-year property tax exemption from RDO Foods
Co. for expansion project at 2500 Mill Road.
Chairman Carpenter reported they have application from RDO Foods. Mr. Carsen reported they are asking 100% exemption for 5-years for expansion of business, normally would allow and guidelines allow 5-year step-down; there is new law, ag. related processing plant can qualify for up to a 10-year exemption (started 3 years ago, but we have not granted a ten year exemption). It was noted that est. market value $200,000, $10,000 taxable value (which is 5% of market value), would generate tax of $5100/annually.

Mr. Swanson reported that at last council meeting the council authorized entering into settlement agreement, agreements have not been signed.

It was noted that Mike Shea's memo stated that the wastewater plant is due for startup in August of this year; a rep. of RDO Foods stated that when they start up operations on September 3 will be ready to go, believes problems solved; and will take care of expansion plus future expansion. Mr. Stanislowski noted that this is a pre-treatment system. Mr. Shea stated he looked at
plant in Park Rapids, and stated he is reasonably confident this
will do job. Mr. Stanislowski stated expansion will add approx. 27 new employees, etc.

MINUTES/FINANCE COMMITTEE
August 19, 1996 - Page 2

Mr. Swanson stated he was not sure litigation has lot to do with the application; Mr. Hamerlik disagreed.

Babinchak moved to approve exemption for five years on a graduated scale of 100-80,60-40-20%; Bakken seconded motion.
Hamerlik moved to table for 2 weeks; failed for lack of a second.
Mr. Swanson advised that if they table, not to tie to settlement of the litigation. Mr. Carsen stated that the exemption would have to be in place prior to beginning of construction.

Bakken moved to table for 2 weeks, Hamerlik seconded but that he would like to amend with option to call for special meeting to take care of this if litigation settled. It was noted that the committee will meet next week. Motion to table to next committee meeting (August 27) was carried.

3. Ap. for 5-year property tax exemption from J.W. Perry, Inc. (wholesale florist) for new construction at 1250 South
46th Street.
Mel Carsen reported that J.W. Perry currently has business in town, planning to build in Industrial Park, request is for 5-year exemption on a step-down scale. It was noted that they have 3 full-time employees, will be adding 2 additional employees, anticipate 50% increase in business; in 5 years 7.5 employees; and that there is one competing business. Mr. Swanson stated the committee's options are to call for public hearing or reject application. Moved by Babinchak and Bakken to call for a public hearing for September 16, 1996. Motion carried.

4. Matter of recommendation from Implementation Committee for
Police Study re. disciplinary action policy.
Held until next meeting - Tuesday, August 27.

5. Matter of recommendation from Human Resources re. Employee
Suggestion Program (IDEAS Program).
Held until next meeting.

6. Report on cable TV franchise negotiations.
Held until next meeting.

7. Budget amendments.
a) Human Resources - $300.00
The committee considered the budget amendment to increase budget to reflect donation from Thompson Insurance for truck rodeo. Babinchak and Hamerlik moved approval of the budget amendment. Motion carried.

Meeting adjourned.
Alice Fontaine
City Clerk
Dated: 8/20/96.