2018.01.16 Work Session Packet (2nd)
4141 Douglas Drive North • Crystal, Minnesota 55422-1696
Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov
Posted: Jan. 12, 2018
City Council
Second Work Session Agenda
Jan. 16, 2018
Following the City Council meeting
Conference Room A
Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City Charter,
the second work session of the Crystal City Council was held at ______ p.m. on Jan. 16, 2018 in
Conference Room A, 4141 Douglas Dr. N., Crystal, Minnesota.
I. Attendance
Council Members Staff
____ Budziszewski ____ Norris
____ Dahl ____ Therres
____ Deshler ____ Gilchrist
____ Kolb ____ Ray
____ LaRoche ____ Revering
____ Parsons ____ Sutter
____ Adams ____ Serres
II. Agenda
The purpose of the work session is to discuss the following agenda items:
1. Review chapter 9 proposed changes
2. Financing for fire suppression systems
3. Blue Line quarterly update*
4. City manager monthly update
5. Constituent issues update
6. New business*
7. Announcements*
III. Adjournment
The work session adjourned at ______ p.m.
Auxiliary aids are available upon request to individuals with disabilities by calling the City Clerk at (763) 531-
1145 at least 96 hours in advance. TTY users may call Minnesota Relay at 711 or 1-800-627-3529.
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_____________________________________________________________________ FROM: John Sutter, Community Development Director _____________________________________________________________________ DATE: January 11, 2018 TO: Anne Norris, Executive Director (for January 2, 2018 meeting) SUBJECT: City financing for installation of private fire suppression systems In 1996 the city adopted a policy enabling private parties to finance the installation of fire suppression systems as a special assessment. In 2005 the policy was broadened to include other types of fire protection equipment. The 1996 and 2005 policy resolutions are attached along with the petition form and a specific project resolution. In fall 2017 Councilmembers expressed an interest in the city doing more to encourage the installation of these systems, in part due to the number of old buildings in the city being passed over for new uses due to code-required sprinkler systems. Staff is proposing a modification of the existing program that would eliminate the interest for such special assessments but also shorten the term to 5 years. The Council will have an opportunity to discuss this item and ask questions of staff at the January 16 work session. At the February 5 meeting, staff intends to bring a resolution updating the program based on the following outline: A. Public Purpose To reduce the potential for loss of life, not only for building occupants but also first responders To preserve and enhance the value of real property To prevent the emergence of blight in older buildings To improve the utilization of older buildings to create jobs and economic opportunities To counteract the combination of physical constraints, building age and market forces that make fire sprinklers infeasible for some properties B. Assumptions Estimated commercial building retrofit cost of $6,000 fixed costs plus $3.50 psf (it’s approx. $2 psf for new residential construction) Estimated cost to install new water service is $3,000 - $20,000 depending on type & location of water main, other utilities present, etc. Estimated road restoration cost is $2,000 - $15,000 depending on location of water main, type of road, etc.
COUNCIL STAFF REPORT Financing for Fire Suppression
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C. Proposed Parameters for City Financing Payback via a special assessment requested by the property owner 5 year payback term (10 semiannual payments due with property taxes) No interest charge (interest rate risk to the city is minimal due to term being shortened from 10 years to 5) City financing would be limited to 25% of the parcel’s most recent Henn Co Estimated Market Value, or 25% of the parcel’s appraised value if the property is tax-exempt City financing would also be capped at $100,000 per parcel Minimum project size is $10,000 City self-finances out of EDA fund balance City may deny an application or suspend the program (not accept new applications) if it determines that the fund balance is getting too low City may modify the program to charge interest for new applications if the interest rate environment changes Applicant must provide $2,000 escrow ($5,000 if the property is tax exempt and we have to get an appraisal) to cover the city’s actual expenses (city attorney, recording fees, appraisal cost if applicable, etc.) D. Hypothetical Projects 6404 56th (Top Hat Theater, includes basement) - Estimated cost $85,400 ($50,400 sprinklering + $20,000 water service + $15,000 road restoration) - Maximum city financing: $62,600 (25% of $248,000 EMV) - Owner cash portion: $22,800 (estimated cost less amount to be financed as a special assessment) - Owner semiannual payment: $6,260 (twice per year for 5 years)
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6016 42nd (former Emerald Cleaners, currently vacant) - Estimated cost $49,400 ($14,400 sprinklering + $20,000 water service + $15,000 road restoration) - Maximum city financing: $47,750 (25% of $191,000 EMV) - Owner cash portion: $1,650 (estimated cost less amount to be financed as a special assessment) - Owner semiannual payment: $4,775 (twice per year for 5 years)
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3537 Douglas Dr (hypothetical expanded Milton’s) - Estimated cost $57,750 ($22,750 sprinklering + $20,000 water service + $15,000 road restoration) - Maximum city financing: $57,750 (25% of $862,000 EMV would be $215,500) - Owner cash portion: $0 (estimated cost less amount to be financed as a special assessment) - Owner semiannual payment: $5,775 (twice per year for 5 years)
4141 Douglas Drive North • Crystal, Minnesota 55422-1696
Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov
CITY MANAGER WORK PLAN
MONTHLY CHECK IN – JANUARY 2018
Objectives:
- Strategic leadership for achievement of Council goals
o Thriving Business Climate
City Code update in process – UDC (former zoning code)
approved 1/2/18
2018 EDA project – Bass Lake Road streetscape update
o Create Strong Neighborhoods
Crystal Ball and Neighbors Helping Neighbors
Code enforcement – on-going
Implementation of Master Parks System Plan – Welcome Park
Marketing new vendor for home improvement loans/rebates
Vacant EDA lots being sold for new single family homes
o Fiscally sound and stable policies and procedures – see Financial
Management below
- Financial Management
o Long term financial planning:
2/5/18 work session – continue the discussion, including 2-year
budgets
o Space needs study – PD and City Hall - underway
- Service delivery
o Monthly check in with Council
o Constituent Issues – prompt response and resolution – on-going
o Closed constituent issues – monthly report
o Updated city manager goals to be reviewed 1/11/18
- Media Relations
o April work session – discuss Public Safety and critical incidents – how
information is shared, what information is shared
o Review and update media protocol – 2nd quarter