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MINUTES/FINANCE COMMITTEE
Tuesday, March 1, 1994 - 3:30 p.m.

Members present: Kulas, Johnson, McCabe.

1. Applications for abatement of taxes:
a) Longinus and Rose Kuklok, 515 23rd Avenue South
Mel Carsen, city assessor, reported that application is for abatement of 1993 taxes for senior citizen tax credit, applicant qualifies but failed to file, and he recommended approval of the application. Moved by Johnson and Kulas to approve application as submitted. Motion carried.

McCabe reported present.

2. Applications for 3-year remodeling exemptions:
Mr. Carsen reviewed applications for exemption as follows:
a) 2220 South Washington Street
Mr. Carsen reported this is former Cinema Theatre, that remodeling by WDAZ-TV qualifies but addition and tower do not qualify for exemption.

b) 1413 7th Avenue North
Mr. Carsen reported applicant is Darin P. Johnson,and remodeling qualifies.

c) 3551 South 20th Street
Mr. Carsen reported applicant is Robert E. and Jeanie H. Peabody for renovating and repairs to office building plus addition to former Robertson Lumber Co. property; that remodeling qualifies but addition does not.

d) 1324 7th Avenue South
Mr. Carsen reported that applicant, Bayard Grant, dba Bearings & Drives, has done extensive remodeling to the building
which qualifies for exemption.

Moved by Johnson and McCabe to approve applications, with exceptions as noted. Motion carried.

3. Matter of City chemical and substance abuse policy.
Howard Swanson, city attorney, reported he had redrafted policy as amended at last meeting; that there was some discussion re. subsection 3, and that subsection could be deleted without affecting balance of the policy. Jay Graba, personnel officer, stated he has no problem with that section; but asked for committee consideration of whether it should be required that the supervisor notify personnel office of any infractions so that they can follow up on them. Mr. Swanson suggested adding Section 11 to include provision for notification of personnel department, and that committee needs to set effective date for the policy.

Moved by McCabe and Johnson to adopt policy as presented with inclusion of Section 11 to provide for notification of personnel
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March 1, 1994 - Page 2

department of any infractions, with an effective date of April 1, 1994. Motion carried.

4. Matter of amendment to pension plan ordinance (Section 7-0204, subsection 4).
John Schmisek, city auditor, presented matter of amendment to ordinance for clarification of options/percentages for those employees selecting normal retirement at age 65, 55 or 62. Mr. Swanson advised that this is house-cleaning ordinance. Moved by Johnson and McCabe to approve amendment, and to introduce for first reading. Motion carried.

5. Matter of resolution of necessity on renewal area on North
Washington Street.
Mr. O'Leary, Community Development, asked that this matter be pulled at this time.

6. Temporary and overtime statement for January.
The committee reviewed the statement. Moved by McCabe and Johnson that the statement be approved. Motion carried. (committee only)

7. Matter of tax increment financing for GFG Real Estate, LLC and Truck Plaza.
Mr. Schmisek reported that annexation of property has been completed, but final plats not yet filed; and presented requests for tax increment financing from GFG Food Service, Inc., amount requested is the lesser of the eligible tax increment finance items or the amount that can be created with their eligible real estate tax payments, and the bonds to have a 20-year life; and from Big Sioux Travel Plaza for installing of infra-structure and underground utilities to serve the project.

Mr. Swanson reported that there are two ways to handle: 1) through urban renewal process, or 2) law allows in commercial/industrial property; and reviewed steps/procedures that have to be followed. He advised they need to address zoning: have utilized Planning and Zoning Commission to make sure properly zoned and plan consistent with long range planning; however, doesn't need to be referred to Planning and Zoning to make determination; Committee instructed that this matter not be referred to Planning and Zoning, and to go to council for public hearing at April 4 council meeting.

He reported that commercial or industrial use of the tax increment financing somewhat more restrictive than under urban renewal; typically costs related to infrastructure (sewer, water, streets, clearing of trees, etc. approaches and ditches, parking lot, acquisition of land, cost of landscaping if required) are reimbursable, but not for brick and mortar (building). He stated that once hearings held and public had opportunity to speak on
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issue, council can call for sale of the bonds, determining final costs and prelim. work on issuance of bonds. Mr. Swanson stated that defining of district (property that generates tax to pay bonds) should be done now.

Ken Vein, city engineer, reported that GFG Food Services would use tax increment financing on-site only; Travel Plaza off-site only, building infrastructure to the site. He stated that Travel Plaza may have protest but they are not getting an advantage.

The committee questioned why these projects financed together; Mr. Swanson stated cost of bond issue less if combined, could do separately, but nothing in statutes requiring separate issues.

Mr. Swanson also advised that they need to determine amount of issue, can use a "not to exceed" amount. It was stated that GFG Food Services is requesting $1,540,362 and Travel Plaza $1.2 Million.

Moved by McCabe and Kulas that we find that the property is commercial or industrial, presently undeveloped; that we grant preliminary approval of the tax increment financing in an amount not to exceed $1.5 Million for GFG Food Service, Inc. and in an amount not to exceed $1.2 Million for Truck Plaza, subject to a public hearing to be scheduled for April 4, 1994 before the city council with final action by the council after that date; and further that the proper City officials give notice in the official newspaper and to competitors; and further that we set the tax increment districts as shown on the plat.

Mr. Swanson also advised bond costs up-front. He also stated that in case of default City will be responsible.

Motion carried.

8. Matter of setting alternate date for Board of Equalization.
Mel Carsen, city assessor, reported that Board is required to meet on the second Tuesday in April (April 12), and because State law requires notice to property owners of any increase in valuation of 15% or more or $3,000 or more, and because they have several areas in town with large increase, and because of amount of work, they are asking for alternate meeting date of May 2. He reported that they are proposing to notify property owners receiving 7.5% increase or more, notifying now rather than when they receive tax bill. Moved by Johnson and McCabe to schedule second meeting of Board for 7:00 p.m. on Monday May 2. Motion carried. (committee only)

9. Request for budget amendment.
Mr. Schmisek presented request for amendment of the auditor's budget to transfer $4,000 from Carry-over to Consultants for MINUTES/FINANCE COMMITTEE
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computer training program by New World Systems for inventory and
public works software. Moved by Johnson and McCabe to approve amendment, and introduce ordinance for first reading. Motion carried.

Meeting adjourned.

Alice Fontaine
City Clerk


Dated: 3/2/94.