##VIDEO ID:3XymV6SwlZ4## recording in progress call to order the St Joseph City Council of August 19th please rise for the Pledge of Allegiance the pledge of alance to the flag of the United States of America to the stands na indivisible jce so lost item two public comments anybody wishing to address the council step to the podium is this my C okay very good see no set for we'll go to item three approval of the agenda so second motion second approving the agenda questions or concerns all those in favor signify by I I oppose motion carries item four oops oops item four consent agenda second motion and second on the consent agenda any issues yes if I just may um for the tobacco license just so everybody's aware there is a typo on the address so we will get that corrected in in a new license out yeah everybody caught that I think okay what is the correct address it's 219 Cedar Street yeah 219 Cedar not 219 okay East Minnesota I went looking for that address Wonder where's this tobacco shop going to be it's a house right between 220 and 2117 okay um motion and second on consent agenda all those in favor signify by I I opposed motion carries okay item five business subsidy policy that yes good evening mayor and counselors um for your consideration this evening is a update to our business subsidy policy um if we can Amanda can click it over here just got a brief PowerPoint to walk you through awesome thank you uh so just an overview um our current subsidy policy dates back to the early 2000s and was last updated in the early 2000s um much of the original policy that we had in place had attachments that were missing or couldn't be located by staff um and there's been some statutory requirements uh since 2002 as well so our revised policy essentially reformats our policy charting in a more clear sustin layout the purpose goals criteria and evaluation of uh subsidy request and then we also updated just some documents for pre-application and application forms so that way when folks are inquiring about our subsidy policy we have updated forms that we can provide to them um it is a guidance um document uh we also removed language that uh was no longer relevant just tied to different attachments as part of the policy there is a requirement to conduct a public hearing when updating the subsidy policy the Eda did recommend approval of their of this policy at the June 18th meeting and staff worked with our legal team including Taft and Northland in review and drafting of the policy to update and make sure all the language was relevant in meeting statutory requirements so with that I'd be happy to answer any questions otherwise I'd ask that the council open up a public hearing anybody wishing to speak to the business policy or business subsidy policy update please come to the podium name and address see no come forward we will close the public po or public hearing and move to adoption move to adopt the changes I second that motion in second adopting the changes for the um business subsidy policy any other questions or concerns all those in favor signify by I I opposed motion does carry uh item six Tammy is your right yeah item six Tammy Northland Securities good evening mayor city council members Tammy umdal with Northland Securities here to speak on two items to do um a debt over um it's coming up on the screen overview that I do annually before the city as well as to speak to the resolution awarding the sale of the series 2024 a bonds and as staff is bringing up the um presentation I will just verbally speak to it so the um I'm going to cover the purpose the study approach that we use for this study an overview of the outstanding obligations including preliminary estimates for the bonds that were sold this morning as well as the source of revenue for the repayment of those bonds and then speak to the um City's credit rating city does um use the issuance of debt as an important an essential tool for financing Capital Improvement projects when a pgo strategy is not either feasible or advisable for the city it's important to monitor the repayment of the debt obligations as you've heard me say before when I've been before the city council your staff does an excellent job of doing debt management the role of Northland and that we are asked to do and this is not with fee so this is an annual review that we do with staff is a a double check so Lori and I go back and forth on the various outstanding series to make and I am on slide three for the back room um for the benefit of ensuring that ongoing debt management on slide four so the study approach that staff um provides ending cash balances that is information that Northland would not have on file and the ver um verification the current source of funding and then we work on organizing that data and reviewing it on Slide Five on chart one this shows the tax levy for Debt Service it's projected debt outstanding including the existing and an estimate for the 2024 for new debt which came in very close to that um so you can see a few years of um as structured um increase in the um projected debt outstanding and then that rapid amortization on chart two excuse me that's the tax levy on chart one on chart two is the total debt outstanding and here is where you can see that rapid amortization of that debt outstanding the principle being paid off if you can go to um chart seven or excuse me page slide seven chart three what I would note here for St Joe and just the type of debt that you have been issuing in recent years including the debt um with respect to the series 2024a the tax levy continues to be the majority source of revenue for repayment of that debt that is similar in cities that would be similarly situated as St Joe on slide or slide eight chart four here here we like to look at and although the series 24a bonds were not rated and I'll explain that in a moment you can see that St Joe and just how you structure your debt fairly short term that rapid amortization of the debt and between now and 2042 with 100% of the debt being repaid inclusive of the 2024 a bonds that are being issued this evening if you can go to the next slide please I can as well with respect to the credit rating um the last rating for the city was in September of 23 double A minus and I'll speak to the fact that the current series 24a that you'll have the resolution in a moment those are not rated because of the size it was less than a million dollars a rating is approximately $25,000 from a cost benefit standpoint it was not in the city's financial interest to seek that rating so there is no rating on the series 24 a bonds but for the benefit of the council and the viewing public the city still has that r being outstanding from SNP and maintained on your other debt that is outstanding and at a future date depending on the size of the issuance it may and likely be advisable that you would seek a rating on Bonds in the future so that's the reason there is no rating on the series 24a the rating is um it's a credit rating is forward-looking opinion of the rating agency and it simply reflects the opinion in the case of St Joe it's S&P Global that rates your bonds it's their opinion on your own outstanding debt credit highlights let me go to slide 10 in the last report and there's no indication this hasn't continued and continued to be a positive City demonstrates strong financial management of its debt obligations in the view of SNP and in my professional View and view of Northland the bond rating doublea minus from S&P some of the um things that they highlighted in the most recent report all that has happened since that 23 rating these things would still hold to be true and most importantly that third bullet point that rapid amortization of your debt and I believe that um next slide will be the last one concluding oh this one is still in here but I'll just speak to it verbally this is just a snapshot of the S&P um Global rated Minnesota cities this was current as of August 7th and you can see that doublea minus which is St Joe's rating about 20% not of all Minnesota cities but of the 315 cities set S&P rates about 20% are rated with that double A minus with that um the next slide will be the conclusion so mayor councel I would be happy to answer any questions otherwise I would move on to speak to the series 24a bonds and the resolution um Tammy um the bonds that we're going to sell or we did we sell these bonds already this morning so these bonds or priced them the 977 Bonds were not sold with What's called the trigger resolution so it's subject to the City council's action this evening and if they come out non-rated or NR and I'm an institution buying municipal bonds because it says NR not rated do you think we'll pay a little bit more interest or do you think that Bond manager is going to look at the Double A minus on last year's bonds and say this is equivalent to the latter and that's demonstrated by when we initially went out um in your Finance plan that you saw and as of Friday what we anticipated to see was about in that 15% basis point higher the sale went extremely well this morning and there was strong interest in these bonds so to your comment that um Underwriters in this case TD looking at that underlying rating on your debt being favorable now these bonds um don't have that rating right no I know that they say believe that you benefited from that the answer is yes and then we didn't have to pay the rating agency to put a rating on we didn't pay SMP that is that is correct the the next save Mone on sorry council member I'm interrupting you so we saved money on not having S&P raum you did but I um in my interrupting you what I wanted to convey is the next time you issue bonds and the size is large enough your rating is getting a little bit stale so it's not that you ride that rating and then continue to get this expect to get the same results that I believe that you got this morning that's all I have anybody else thank you Tammy so I will speak to the other item which is the action item so you have a resolution before you and that resolution came today because the numbers couldn't be filled in until this morning um the bonds are being um sold as the council's aware to finance the city's 2024 Street improvements and to pay the cost of issuance to the bonds the bonds are structured with relatively level annual payments over 10 years again speaking to that rapid amortization of debt the method of um sale was um negotiated and the buyer of these um bonds um was TB and the rating was non-rated Final maturity will be 2034 and the true interest cost without a rating was 4.55% the final power amount is 977 ,000 what's TD is that Toronto Dominion Bank um so that they that investment firm called TD yes okay so that they were um purchased by them got was the underwriter on the bonds so councilors are looking at uh adop the resolution for issuance and sale of bonds so moved I second that motion and second adopting resolution 2024 053 issuance and sale of General obligation bonds any other questions or concerns all those in favor signify by I I opposed motion does carry thank you mayor councel thank you yeah Tammy you want thank you no thank you you too uh where we at number seven uh number seven Knife River interim use permit who's got this one all right good evening once again mayor and counselors for your consideration this evening as an interm use permit request from Knife River um and if we can switch over Amanda just some background Knife River is requesting approval to operate What's called the portable crushing operation along with the Associated Storage and stockpiling of processed Asal in concrete materials and Rubble the subject site is located directly north of their existing operation and east of troex and Gooden company uh kind of hard to see up there but the uh site plan was included in your packet essentially that red outline on the site plan is the area that they're proposing to have those operations at some background equipment on the site will all be portable and remain on site during production the equipment also includes a portable generator a loader Dozer excavator and conveyors typical material that you'll find it's proposed to have these operations for approximately three weeks during the construction season but that can depend on weather and demand of product here's just some pictures showing the operations and how they typically look for the material some findings and conditions of approval hours of operation 7:00 a.m. to 7:00 p.m. Monday through Saturday not including Sunday or federal holidays the interim use permit is good for 5 years and has to then be renewed the location and size of those stock piles are limited to that approved site plan we do have minimum setbacks to Wetland areas all trash on site is in stored or closed containers the lighting is all full cut off style and pointed downward and then we have just our typical language tied to revocation and expiration of the permit and any trigger uh any changes to this interm use permit would then trigger the uh applicants to come forward with a Amendment with that requested action for your you this evening is to approve the finding of fact resolution [Music] be happy to answer any questions uh we also do have the applicants and attendance this evening as well good evening mayor and Council um my name is Holly Reno and I am representing knif River so I'm here to see if you guys have any questions or for tonight's meeting C you got any questions no is it really only going to operate like 3 weeks out of the year yeah it's just it's basically temporary deal huh right yep and the whole thing is we've done it before where we were for like located at this time mainly all we want to do is we just want to move it over like a so it be like the PID cut line and just to make more room and make it more easier for our trucks and stuff to come in so it's not so like congested but yeah it could typically only be a week two weeks we can't see the future but sure yeah I'll I'll move on resolution 202454 I second Motion in second adopting resolution 22254 other questions or concerns all those in favor signify by i i i opposed motion does carry thank you thank you thanks uh okay item eight item eight yep it is rolling right along here so uh do have another PowerPoint here real quick so the American Legion is uh proposing some building materials to redo part of their structure and this includes the entire western side of their building right now it's essentially concrete block and they're proposing to do steel siding with exposed Fasteners and also do those exposed Fasteners in steel in a red white blue to match the theme of the Legion building due to the location being this is in our downtown district there are limits on the allowable materials and then any deviation requires that Planning Commission recommendation which has occurred and Council approval and that's why we're here this evening um everyone's familiar with this building I'm sure so uh just to highlight again that western side is their parking lot side the South and the east side are the ones facing Minnesota Street and First Avenue um this project does not include changes to those sides of the building uh those will remain in Brick the project also does include in ol ating the western side of the building um so our current code language is based off the downtown design plan which you know is a little bit dated from 2007 but a lot of our ordinances are based on that U the plan recommend to not allow steel sighing our current code allows no more than 15% of the exposed wall area uh to be a pre-finish architectural metal panel and the code calls for those panels to act as like an accent or entry type of design um again the existing building on the South and West will remain as brick um and the project uh here's just some depictions that the applicants have included for those steel sighting so the action requested is a approval of the legion's request to construct the steel sighting with the exposed Fasteners on the western side of the building Planning Commission did discuss and vote 70 in favor of this approval this even what's being presented this evening move to approve okay motion and second to approve the building material request other questions or concerns all those in favor signify by i i i oppos motion carries thanks guys thank you all right item nine who gets this one we'll start excuse me we'll start with the City attorney okay we looked at this request to defer assessments for the 2024 project on the grassier trust property sorry I always forget that so the a rasier trust property uh they had filed an application for deferment uh based on their agricultural use until development or sale of the property and when we looked at it we found it was in Green Acres which by Statute means that it's pretty much automatically deferred uh we can still still um impose our interest rate the same interest rate that we're using for the assessments and then it would be collected when that property loses Green Acre status so when it does go into development or ceases to be used for agricultural then we could collect the assessment so if I and the council really doesn't need to take any action at this point since it's going to be automatically for GRE I think what we need to do is decide if we're imposing the same interest rate but that's that's the only thing we need I guess Council approval of because they they did request that it would be at zero interest but the statute leaves it open to the city to impose an interest rate how long is the deferment it ends yeah it will go until until they sell it or or develop it yep could be 10 years could be 50 exactly could be forever um the rasier has received a deferment prior right on another project yes what was the interest rate on that that I I don't know it was on 20th half right 20,000 they had the same interest rate but it was deferred for the first 15 years I believe you no interest rate if I remember I'm sorry hello here with the RAS your family trust the the other assessment they're talking about is um for the water m to the apartment building and we are assessed it was around 25,000 and 15 15 years to pay it or if we sell any property and it was Zero interest for the first 15 I think for 15 years right and then after that we would have to pay interest if we didn't pay it and then it would be if we sell any property though we would be expected to pay the assessment in full and so then my question to sewer Lori is if it's zero now like it is on their first assessment for 15 years then an interest rate kicks in in year 16 does that interest also get deferred you just keep compounding for this they not have to they don't have to send a check for the interest on year 16 it just keeps adding up correct [Music] so and I did see the application I didn't get to the details but if the applicant is requesting the 0% on this assessment for 15 years I support that because that's consistent with what we did before so the market rate might be four or 4 and a half or whatever it is but I think we should have this be do it the same way we did before in this situation that's my a only it's not it's a comment it's not a I did other comments I can make a motion I think that's a good idea make a motion I would agree with what Kevin said my question was going to be is there a precedent and everything he's just stated I believe is our presedent so I would agree with Kevin you mean a precedent of having Z and like there's a specific example for losers are y that's what we have on our large assessment for Field Street that got deferred and then at zero so there is a precedent I'd motion to that uh effect second I get a motion in second but would somebody State exactly what that was like zero for 15 to defer this assessment okay for 15 years at 0% okay very good Motion in second to that effect um questions or concerns so anything else I got a question on that after the 15year mark what interest goes into effect the market rate the market rate yeah okay whatever we'd be charging on ass on interest on whatever assessments were like a street Improvement you know whatever whatever the market rate would that's what I'm guessing right okay it's it's up to the council to set it so you could set it at what the um 2024 assessments are at whatever that rate is sure or I it's our discretion yes it's our discretion I would add to that motion today's interest rate no at year 16 no no don't add that b because we don't know what today's interest rate you can't go 15 years out and say that's going to be the interest rate right it'd be tough to do okay I'll follow you now yeah I mean it could be a positive or A negative you know so you want to reiterate your motion Kevin what the interest rate is at the time of the 15E expiration it's a 15year deferment it's 0% interest 0% and then it'll kick in at year 16 it would still be deferred unless the property loses Green Acres but at that point it would be the mark whatever the city is charging for assessments at that point okay everybody clear motion in second to that does that effect all those in favor signify by i i i opposed motion carries thank you thanks Sue thanks Dan thank you very much right along here number 10 Department reports oh one Department report good come on departments say something I just have one uh I'll jump in first uh I will be um out on Friday all day we will be getting ready to move our son into his dorm so I will be gone sweet Cur you got anything we had the groundbreaking today for the hall food and tap I know most of us a lot of us were there and it was a very nice ground breaking they thanked all the chefs and Cuisines and restaurants that they're going to have there all the people that help facilitate the construction and leading up to this point and is just a really nice groundbreaking did you get to go to the WR too I didn't go that yeah did you I just walked through okay and uh so you want to just tell everybody what we're talking about oh I'm sorry um the baby uh store WR and their addition to and so that's why I thought you were you're going to head over there um but yeah really exciting um to have that in our mire of businesses now so I was there for about two hours and it was awesome you know five kids I mean yeah really good attendance did you see all my beautiful woodwork that was yours we TR they threw that out they didn't know laori and I were talking earlier and I just I don't have really anything to say about accept that but we were talking about earlier about the increased volume on First and soon to be second and how we're going to try to control both traffic pedestrian and vehicle via sidewalks or Crossings or that to me that's kind of like the next big thing from that South sorry Northwest side of town so something we'll have to keep in in mind I don't have really anything else anybody staff anybody Randy any okay uh item 12 Clos meeting pursuant to Minnesota State Statute 1305 subdivision 3C the S of city council will enter into Clos session to consider counter offers for the acquisition of portions of the following properties PID 84. 533 0.268 owned by Ryan Parsons pit 84.5 35465 owned by Bill AR and pids 84. 5336 00003 and 84. 533 60.4 owned by WG properties got to get off here mayor we'd like to add one more property we we had communication today on 701 Elm Street so we'd like to add that to the closed hearing as well and 701 Elm Street as well I don't have a pit or anything or I I don't have the p number but we've got the address okay we'll be talking about 71 elmr as well so we'll come back after those discussion and adjourn oh recording stopped e so just hold on okay so I got to list everything that we're doing here sorry are we uh are we recording right now no no just recording in here okay so pursuing to Minnesota statute 13 d05 subdivision 3 C3 city council is in a closed session to consider counter offers for the acquisition of portions of the following properties pit 84.5 33268 owned by Ryan Parsons p