MINUTES
REGULAR COUNCIL MEETING
CITY OF REDWOOD FALLS, MINNESOTA
TUESDAY, JULY 19, 2022
Pursuant to due call and notice thereof, a regular meeting of the Redwood Falls City Council was called to order in the Municipal Chambers on Tuesday, July 19, 2022, at 5:00 p.m.
Roll call indicated Mayor Tom Quackenbush and Council Members Matt Smith, Denise Kerkhoff, Jim Sandgren, Larry Arentson, and John T. Buckley were present, constituting a quorum.
Also present were City Administrator Keith Muetzel, City Attorney Trenton Dammann, Public Works Project Coordinator Jim Doering, Finance Director Kari Klages, and Council Secretary Caitlin Kodet.
A motion was made by Council Member Sandgren and seconded by Council Member Smith to approve the agenda. Motion passed by unanimous vote.
A motion was made by Council Member Arentson and seconded by Council Member Buckley to approve the July 5, 2022, minutes as presented. Motion passed by unanimous vote.
A motion was made by Council Member Kerkhoff and seconded by Council Member Smith to approve the following items on the Consent Agenda.
1. Temporary On-Sale Liquor License Application – Church of St. Catherine’s
2. Appoint Port Authority Member
3. KLGR Advertising Exchange
Motion passed by unanimous vote.
Mayor Quackenbush opened a public hearing at 5:02 p.m. to discuss a Tax Abatement Request for Childcare Center Project.
Shannon Sweeney with David Drown and Associates was present to introduce Resolution No. 48 of 2022 – Resolution Approving Property Tax Abatement for Certain Property Located in the City of Redwood Falls.
Mr. Sweeney stated the owner of Snug as a Bug Childcare, Maria Harms, and Craig Piette, the property owner of 826 E. Bridge St., parcel number 88-766-0020, located in the City of Redwood Falls, have submitted a tax abatement request to Redwood County, the City of Redwood Falls, and the Redwood Area School District. Mr. Piette is proposing to construct an approximately 5,400 sq. ft. childcare facility on the project location that would be operated by Ms. Harms. The proposed project would result in an investment of approximately $670,000 to construct the childcare facility. The initial estimate of market value for the facility based on the information provided is $618,700. Based on that value and payable 2022 property tax rates, the facility is estimated to increase the annual City property tax for the project location by $8,196, increase the County property tax by $3,779 annually, and the School District property tax by $1,349.
Mr. Sweeney stated Ms. Harms and Mr. Piette are requesting the abatement (reimbursement) of City, County, and School property taxes for the new facility for as long as the facility is operated as a childcare center. By State Statute the maximum duration of a City/County/School property tax abatement is 15 years. Staff and the County’s economic development committee have recommended that a 15-year tax abatement be considered for the proposed project.
Mr. Sweeney further stated the childcare facility will create eight jobs at a minimum of $13.00 per hour. If approved, construction will begin on the facility in October with an intended completion date of December 2023. The Redwood County Board approved the request for a 15-year tax abatement for the project.
Maria Harms, owner of Snug-as-a-Bug Childcare, and Craig Piette, landowner of 826 E Bridge St., were present.
Ms. Harms addressed Council and expressed her passion for the project and the commitment she and Mr. Piette have for the project. The proposed facility would create 72 childcare spots. The Redwood Falls area is currently lacking 199 childcare spots.
Briana Mumme, Redwood County Economic Development Coordinator, was present.
No one was present to voice any concerns.
Mayor Quackenbush closed the public hearing at 5:13 p.m.
A motion was made by Council Member Buckley and seconded by Council Member Kerkhoff to waive the reading of Resolution No. 48 of 2022 – Resolution Approving Property Tax Abatement for Certain Property Located in the City of Redwood Falls. Motion passed by unanimous vote.
A motion was made by Council Member Sandgren and seconded by Council Member Smith to approve Resolution No. 48 of 2022 – Resolution Approving Property Tax Abatement for Certain Property Located in the City of Redwood Falls. Motion passed by unanimous vote.
City Administrator Muetzel introduced the Request for Proposals for Single Family Spec Home Development.
Mr. Muetzel stated Redwood Falls needs to continue to retain and attract residents, which cannot be done without offering a variety of housing options to fit the needs of a diverse population. One of the goals of the Comprehensive Plan is to “promote a variety of housing types in Redwood Falls for all its citizens”. This goal can be accomplished by encouraging the development of a variety of housing projects. To further this effort, Staff is proposing to establish a single-family spec home development program that specifically targets existing vacant in-fill lots.
Mr. Muetzel stated Council recently approved the purchase of a vacant residential lot located at 516 East Elm Street. The lot has been utilized as a garden for several decades and there are no records of any structure being built on the property. The estimated market value of the property is $15,100 which is equal to the purchase price. Staff is proposing to issue a Request for Proposals (RFP) for a developer to construct a single-family spec home on the lot. Under the proposed terms of the RFP, the lot will be sold to the developer for $1.00 and up to $250,000 in construction financing will be provided for up to 18 months at 0% interest. The construction financing will be recorded as a lien against the property and will be repaid when the home sells or the loan term expires, whichever comes first.
Mr. Muetzel further stated assuming an interested developer can be identified, the end result of this program will be the construction of a desperately needed, entry-level home, with minimal risk to the Port Authority. The City will recoup the lot costs through the collection of future property taxes and value will be added to an existing neighborhood.
A motion was made by Council Member Smith and seconded by Council Member Kerkhoff to approve the Request for Proposals for Single Family Spec Home Development. Motion passed by unanimous vote.
Public Works Project Coordinator Jim Doering introduced Resolution No. 49 of 2022 – Resolution Amending Resolution No. 44 of 2021- Setting Fee Schedule for 2022.
Mr. Doering stated Resolution No. 49 sets the water access connection fee or WAC for the substantially completed North Redwood Watermain Looping project. Water services and curb stops were installed to the right-of-way line of most residential and platted parcels along Woodhill Road. These would allow access to City water if it’s needed in the future. All the township residents are currently serviced by their own wells.
Mr. Doering stated prior to granting access, the lot owners would have to petition for annexation according to City Ordinance and once that is authorized by all government units, they would be charged the WAC fee along with the cost to purchase a water meter. The connection to the residence would be completed by the plumber of their choosing and at their cost. The cost per foot of water main was determined to be $220 per linear foot. This was multiplied by an averaged 150-foot lot frontage which yields $33,000.00. This is divided by two (2) for each side of the road to share the cost and develop the standardized $16,500.00 WAC fee. Staff recommends approval of Resolution No. 49 and adding the fee to the current 2022 fee schedule.
A motion was made by Council Member Sandgren and seconded by Council Member Buckley to waive the reading of Resolution No. 49 of 2022 – Resolution Amending Resolution No. 44 of 2021- Setting Fee Schedule for 2022. Motion passed by unanimous vote.
A motion was made by Council Member Smith and seconded by Council Member Arentson to approve Resolution No. 49 of 2022 – Resolution Amending Resolution No. 44 of 2021- Setting Fee Schedule for 2022. Motion passed by unanimous vote.
Public Works Project Coordinator Jim Doering introduced Resolution No. 50 of 2022 – Resolution Authorizing the City of Redwood Falls to Submit a Point Source Implementation Grant Application to the Minnesota Public Facilities Authority (PFA) and to Authorize City Officials to Execute a Grant Agreement on Behalf of the City of Redwood Falls for the Wastewater Treatment Facility.
Mr. Doering stated Resolution No. 50 authorizes the Point Source Implementation Grant (PSIG) Application in anticipation of a required facility improvement of the wastewater treatment system. The grant funds up to a maximum of $7,000,000.00. Currently, the Council-approved facility plan has been submitted to MPCA and the PFA for a new filter plant and municipal pond upgrade with a cost projected up to $9,000,000.00. Staff is recommending the approval of Resolution No. 50 which will enable the submission of the grant application to secure up to $7,000.000.00 in state funds. Due to expected high demand, it is prudent to apply for the grant early to offset the costs of a future wastewater treatment plant upgrade. The application package is being put together by Bolton and Menk Inc. and the full application is not available. However, the process cannot move forward without Council Authorization and approval by resolution.
A motion was made by Council Member Kerkhoff and seconded by Council Member Sandgren to waive the reading of Resolution No. 50 of 2022 – Resolution Authorizing the City of Redwood Falls to Submit a Point Source Implementation Grant Application to the Minnesota Public Facilities Authority (PFA) and to Authorize City Officials to Execute a Grant Agreement on Behalf of the City of Redwood Falls for the Wastewater Treatment Facility. Motion passed by unanimous vote.
A motion was made by Council Member Buckley and seconded by Council Member Arentson to approve Resolution No. 50 of 2022 – Resolution Authorizing the City of Redwood Falls to Submit a Point Source Implementation Grant Application to the Minnesota Public Facilities Authority (PFA) and to Authorize City Officials to Execute a Grant Agreement on Behalf of the City of Redwood Falls for the Wastewater Treatment Facility. Motion passed by unanimous vote.
City Administrator Muetzel stated the Hwy 19 bridge will close at 6:00 p.m. on Thursday, July 21 for approximately seven days. The bridge is scheduled to reopen on Friday, July 29, depending on weather and curing process. The Redwood Falls Police Department will prioritize traffic enforcement on Grove Street, through Ramsey Park, and along Oak and Lincoln Streets.
Mayor Quackenbush commended the Redwood County Fair Board on a successful event.
Public Works Project Coordinator Doering stated the Drew Street reconstruction, Reflections development, and the Power Plant Road replacement projects are all progressing as expected without complications.
City Administrator Muetzel stated the Port Authority met for a work session on July 18, 2022. The Port Authority discussed the downtown area and the Chamber of Commerce’s interest in promoting downtown. It was suggested that the City Council and the Chamber of Commerce discuss promoting the downtown area at the next Work Session on August 30.
Bills and Claims were presented to Council for informational purposes. No questions, comments, or concerns were raised.
There being no further business, a motion was made by Council Member Sandgren and seconded by Council Member Kerkhoff to adjourn the meeting at 5:42 p.m. Motion passed by unanimous vote.