Mayor Beyer called the Special Meeting of the Rockford City Council to order at 6:00 p.m. The meeting was held in the Council Chambers of City Hall 6031 Main Street, Rockford, MN. The purpose of the meeting is to review the details of the amended Parkwood Development agreement and to review financial information about the western access.
ROLL CALL
Roll call was taken, the following members were present: Beyer, Altringer, Graner, Nichols, and Seymour. Also in attendance was: Attorney Couri, Financial Consultant Shannon Sweeney, Planner Dan Licht, Administrator Carswell and Engineer Mark Statz.
The Pledge of Allegiance to the Flag was given.
Review Bond Schedule for the public improvement/Western access
Shannon Sweeney of David Drown and Associates presented two
preliminary bond schedules for the western access project for a 15 year period
and 20 year period. The bond schedule
includes the assessment payments from the US Homes portion of Parkwood and
Wagner payments beginning in 2013.
Shannon Sweeney discussed the bonds would be backed by special assessments placed on the property. When asked if this bond issue will affect the cities bond rating, Mr. Sweeney replied that the bond rating is based upon: maintaining adequate fund balances in the general fund, water and sewer department and that these balances do not fluctuate much from year to year.
There was discussion about the Wagner’s not having the
ability to pay the assessments that will be due beginning in the year 2013. The
bank would take over the property if there is a mortgage on it and they would
pay the assessments. However, Mr. Wagner
says they plan to sell their property to a developer as soon as possible. The DNR may want to claim the property if no
one pays the taxes for many years, due to its proximity to the
The city council asked Joe Jablonski what US Homes have been selling their lots for and Joe stated that the lots in Parkwood have been selling for $55,000 to $85,000 per lot and that Hurst Woods lots have been selling for $85,000 to $100,000 per lot.
The risks to the city on this project are if the taxes don’t get paid the city will have to make the bond payments until taxes are paid.
Council member Seymour stated he is concerned about the estimated $12,000 assessment per lot for the west access.
The bond has been structured so that the city could re-finance in 2013, if needed.
Mayor Beyer called a recess and convened the meeting at 7:20 p.m.
Bonestroo was asked how they came up with the cost for the bridge/west access. Mark Statz of Bonestroo stated that they used costs listed in their data base on what these types of projects cost now.
There was some discussion about shaving some of the costs off the bridge project by using the dirt accumulated on the Parkwood site. Contractors that bid the project will be informed of this and can make those arrangements.
Review Amended
Parkwood Development Agreement
Attorney Couri reviewed the changes in the Parkwood development agreement. Brian Wagner was in attendance representing the “Wagner’s”. Joe Jablonski was in attendance representing US Homes.
There was a lengthy discussion about the changes that were made to the agreement and further changes that will be required to address assessing US Homes for their portion of the western access.
Joe Jablonski asked if the city would allow the western
access to be constructed prior to the construction of
Council member Altringer stated that the only thing the city is asking for that differs from the original agreement is the signed annexation petitions for the Wagner property and if the two developer’s refuse to sign these then the city is not willing to make any changes to the existing agreement. Joe Jablonski stated that the Parkwood Development would be forced to quit building now and the city would have to sue the developers next year if the western access is not constructed by November 15, 2009.
Joe Jablonski asked if US Homes could wait to submit a letter of credit for the access until the city bonds for the project. Attorney Couri stated that the city will require the letter of credit be submitted when the developer’s agreement is signed and submitted to the city.
Brian Wagner asked the city a question about the assessment to his property. The assessments to the property would be based on the actual costs of the project and would be certified to the tax roll after the project has been completed.
Brian Wagner stated that they lost two lots due to the location of the western access and wants to make sure that he is assessed for only the lots that he has.
It was noted by the city attorney that the Wagner property
will have to be subdivided prior to the project moving forward to separate the
US Homes portion north of
Council asked the developer’s Brian Wagner and Joe Jablonski if they agreed to the terms that have been discussed and they agreed, but noted the changes will have to be reviewed by their legal counsel.
MOTION was made by Altringer, seconded by Graner to authorize Attorney Couri to draft an amendment to the Parkwood Developer’s agreement to include the following terms:
¨
¨ Linnea Parkway will be constructed with the western access and may be assessed as per MS429
¨ Annexation petition for Wagner parcel #1 must be signed and submitted to city hall no later than April 17, 2008 at 10:00 a.m.
MOTION CARRIED-VOTING IN FAVOR: BEYER, ALTRINGER, GRANER, NICHOLS, AND SEYMOUR.
Adjournment
Motion to adjourn was made by Altringer, seconded by Graner
Mayor Beyer adjourned the meeting at 8:53 p.m.
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