HomeMy WebLinkAboutCCMinutes_2008_09_09 18 �
Brookings City Council
September 9, 2008
The Brookings City Council held a meeting on Tuesday, September 9,2008 at 5:00 p.m., at City Hall
with the following members present: Mayor Scott Munsterman, Council Members Julie Whaley,
Mike Bardey, Ryan Brunner (arrived at 6:00 p.m.),Tim Reed, and Tom Bezdichek. Council Member
Mike McClemans was absent. City Manager Jeffrey Weldon, City Attorney Steve Britzman, and City
Clerk Shari Thornes were also present.
Update bv HDR on the Traffic Imnact Study for the 34`�Avenue Im�rovement Project.
The City of Bxookings,Bxookings County and industrial park businesses have partnered in the
Brookings Industrial Paxk Traffic Impact Study. The team includes of Jeff Weldon, Ciry Manager;
Jackie Lanning, City Engineer;Rick Laughlin, HDR;and Jason Kjenstad, HDR. Rick Laughlin
presented the progress report. The purpose of the Traffic Impact Study is to analyze current traffic
operations, determine future traffic volumes, evaluate the need for Interstate crossings and other
improvements and recommend program of improvements. The study area is bounded on the north
by the Bypass, on the south by 32"`�Street S, on the west by 22"d Avenue and on the east by 34�'
Avenue. HDR xeported on the turning volumes and level of service or congestion for intersections
within the study axea. HDR also conducted a travel survey which questioned work start and stop
times,use of carpools, use of other transportation modes and routes to/from work. One thousand
one hundred thirty-nine (1,139) people responded to this survey which is an outstanding response
rate. South Dakota DOT conducted traffic signal waxrant studies which HDR verified with this
study. The recommendation is for traffic signals to be installed at the east ramp of the Interstate
and 6`'' Street as well as 6`''Street and 32°d Avenue. A provision to eventually move the signal from
32°a Avenue to 34`�'Avenue will be made using alternate roadways to get to the 34`h Avenue
intersection. HDR also reviewed Brookings Growth Areas from the 2020 Vision Plan for the City
of Brookings. The next steps in the study include fuush the traffic forecasts, develop future
alternatives, analyze traffic operations,prepare recommendations,p�esent to the public fox comment
and finalize the report. HDR also presented future traffic alternatives that included possible
extensions of Eastbrook Drive, 20`h Street, 26`�' Street, or 32°d Street S across the Interstate.
Draft Amendments to "Sunday Sales" Ordinance�ertaining to alcohol sales.
Steve Britzman, Ciry Attorney,noted that the existing ordinance pertaining to sale of alcohol on
Sundays has been modified over the years. The pxoposed changed were prompted by recent
changes in state law that include some libexalization in hours and food requirements. He
xecommended that city ordinances be consistent with the state statutes. First reading of the
proposed ordinance is scheduled for September 23`�.
6:00�.m. Meeting Review. The City Manager responded to questions pertaining to the action
items on the agenda.
Council Invites & Obligations. Shari Thornes,Brookings City Clerk,provided a briefing on
upcoming invitations and obligations.
6:00 P.M. CITY COUNCIL MEETING
Consent A�enda: Agenda additions: Resolution No. 77-08,Resolution No. 78-08 and a discussion
regarding events at the Swiftel Center were added to the agenda. The executive session was
removed. A motion was made by Reed, seconded by Whaley, to approve the agenda,which
included:
A. Action to approve the agenda as amended.
B. Approval of the August 26, 2008 City Council minutes.
C. Action on Resolution No. 68-08 - declaring annual surplus items.
Resolution No.68-08
Apptaising and Authorizing Sale of Sutplus Property
WHEREc�S,the City of Brookings has surplus items as listed in a Notice of Sale that are no longer
necessary or useful for City purposes,and it is the desize of the City to dispose of same as surplus
property;
NOW,THEREFORE,BE IT RESOLVED,that all the attached listed properry declared surplus by
the City Council.
FURTHER BE IT RESOLVED by the City Council that the property be offexed for sale at public
auction on Septembei 25,2008.
2008 SURPI.US PROPfiRTY LISI'ING
�NGINF.ERING DEPT.: blue print machine,metal in/out basket,Black and Decker 12V drill,green
chalkboard,(9)chairs,shelving,(5)8'x3'oblong tables,(3) 8'x2.5'oblong tables,8'x'3'x'1'platform
stage,lunchbox,microwave cart,(2) 8'x4'privacy panels on rollers,Compaq monitor V700 15",space
maacimum copyholder,(2)Spirit Motorola radios and chargers(need repair),(3)blue partition panels,
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(2)beige pazrition panel T tall,beige parririon panel5'tall FIt�ANCF.DEPT./CIZY IT DI�.PT.: 22"CRT
Computex Monitox,(4) 15"CRT Computer Monitors FIRF:D�PT.: Lexmark X5150 Scanner/Printer
/Ser.#:01520067725,1981 Ford LN8000 truck chassis /VIN #R80CVM31673,250 gallon
fiberglass water tank,box 20X28 air intake filters,Manual hose reel with 1-inch rubber hose,(2)
Electric overhead garage doot openers,Bell&Howell 16mm movie projector,l�fovie Screen HUbiAN
Iti�SOV1zCt;S: old Laptop Computex,Magnavox TV/VCR-Serial#28157883 L�BRARY: (4)Various
metal xacks,(3) Floor rockexs,(2)Typewritexs: Sharp XQ 320 and Sharp ZQ 330,Chair fxame,
Motor,Flower pots,Video mailexs,Printexs:Epson stylus color 580,Epson 740,Lexmark Z816,HP
psc2100(broken),(16) Computers,6 monitors,SkipDx,CD resurfacez-needs woxk on motor,(2)PC
keyboaxds,Dozens of powex cords PARKS RECR�AT[ON&FORESTRY: 1976 Dodge'/z ton pickup
(License 3247),1979 Chevy'/z ton pickup(License 3316),Sullair 750 rlir Compressor-needs work,
Homelite Cement Saw,Radial r�rm Saw,Dodge Pickup Box Liner,Small ilir compressor-needs
work,Small Roto Tillex-needs work,Pickup Tool Box,Apartment Size Refrigerator,Oldex Small
Copy Machine POLICI:DEPT.: Metal desk,Wood desk,Office chair,Top for a desk,Portable
generator,(2)upholstexed chairs,photo lab equipment,VW engine,Wood cabinet,5-drawer file
cabinet,Wood stand,(3) fishing rods,Tackle box w/tackle,Numerous traffic cones,Halloween flag,
Foam"tubes" 6 containexs of wood preservative,72 Bikes: #1432 Blue KIHY018197,#1436
Black/Silvet Rand C990263674,#1437 Yellow 67125771,#1440 Ivtaioon Murray 69995X92,#1446
Gxeen,#1451 Blue/Black Roadmaster 30924573,#1452 Red Raleigh MOK6411535,#1454 Blue
Roadmaster RU417WMJT,#1456 Blue 5041854,#1457 Orange Huffy BO00047777,#1458
Silvex/Oxange Huffy BBO1C074564,#1460 Blue Raleigh YF98F13356,#1462 Orange l�fongoose
SNXDS05C07,#1463 Purple Huffy 0359197613,#1464 Blue Mongoose,#1465 Maroon Huffy
SO000013718,#1467 Black Raleigh M02000398,#1468 Yellow Huffy,#1469 Pink 857583,#1470
White/Pink YJN,#1471 Orange Huffy 846049011,#1472 Black Huffy 966869089,#1476 Red Huffy
80557F3YFF,#1477 Blue Bianchi,#1479 Blue/Silver 59341828,#1480 Chrome 683387979,#1481
Roadmaster HM0394558,#1482 Red Roadmaster,#1483 Red Roadmastex,#1484 Purple/Pink
Murray 65231X920,#1485 Blue/Purple Roadmastex,#1486 Gxay/Black Pacific r1V186552,#1487
Gxeen Magna 854977,#1489 Blue/Red Roadmaster SD06C65436,#1490 Red/Chrome 8536613,
#1491 Green GB050408581,#1492 Blue/Silvex Trek TBI0415C5,#1493 Purple Huffy
SNF-iEC07C43,#1494 Blue Schwinn P2�104190,#1495 Orange Mongoose FSD06E44951,#1497
Blue Roadmaster SNFSD05C16,#1499 Blue/Black MGX BC10114491,#1500 Black/Silver Schwinn
5268ZWM,#1501 Teal/Silver HuEfy BB04D39364,#1503 Blue Huffy 9220712F0038,#1505 DUhite
852809,#1507 Black Schwinn S3C2172,#1512 Magna 95TD298976,#1519 Purple Roadmaster
RMC60554435,#1520 Blue Roadmaster SNFSD05C00,#1523 Silver/Blue Roadmaster GK5197862,
#1524 Lil/Red/Blue Roadmastex SNFSD06655,#1528 Gxeen 01TD113950,#1530 Lii/Red/Blue
Roadmaster SNSDS07B77,#1541 Magna 02TD9309131,#1543 Magna 02TD5498997,#1546
38511850,#1548 DCL04B01950,#1550 Huffy 667201170M,#1551 Roadmaster F04020006853,
#1552 Schwinn r10E02F0045,#1553 Magna 02TD3567203,#1554 Roadmaster RNC23340548,
#1555 Roadmaster K3CZ008619,#1556 Roadmaster F306023642,#1559 Huffy 90240HUFFY,
#1561 L050418593,#1562 Roadmaster SNSFD05D06,#1563 Huffy 83076HCJFFY,#1564 Huffy
599E00003068,#1565 Huffy 4519908191,#1570 88388797 ST1tEET DEPT.: Walnut Computer
Desk,Oak Computex Hutch,Gxay 5-Drawex File Cabinet,Brown 2-Drawer File Cabinet,IBM
Selectric III Typewriter: 6705114613090,Olivetti Typewritex,Gray Carpet remnant,Sharp Fax
Machine: 1999 model: F02550(8810212�,Magazine Files,Misc. Office Supplies,Computex CPU
Stand, 1989 Fuel Pump:Gilbarco 656-1 (Dr1043008FU),1989 Fuel Pump:Gilbarco 655-1
(Dr1043800JU),3"Water Pump Goxman Rupp: 13r12�1END(299149),1968 Genexator: SF-1.51��
(NA68-0570),3 HI'Spzayer Pump,16 HP Briggs Engine SWIF"TEL CENT'FR: Computer Monitor,(2)
Paper Towel Dispensers,(2)Desk Chairs,Bleacher Puller(Homemade),Trimmer(Needs Work),
Wood Doox,(16) 8'Wood Tables,(4)Plastic Garbage Cans,(10)lbietal carts with casters,Ford
Tractor w/diggec,Washing Machine(Does not work),Dryer(Does not woxk),Riding Lawn Mower
(Needs work),(2)Coiling metal Dooxs,(2) Chalk Boards,(2)Wood Shelves,(2)Wood Easels,
Vacuum Cleaner(Does not work),(2)Cash Registers(Do not work),(4)Misc.Metal Lids,(20)Salad
Crocks,(5) Candle Holders/Vases,(3)Plastic Tea Display Containers,(3)Wood Headboards,Coffee
Pot,(8)Rectangle Serving Bowls,Fiber Opric Christmas Tree,(11)Wicker Baskets,(23)Round
Plastic Bowls,(6)Plastic Plates, (5)Wire Baskets,(12) Glass/Colored Bowls,Tea Machine,(4)Plastic
Juice Pitchers,(12)Plastic Flutes,(6)Half&Full Sheet Pan,'/+Size Lexon Lid,(2)Warmers(do not
work),(2)Lexon Half Pans,1 Gallon Tea Holder,(2)Coffee Cup Linexs,Bunn Base Warmer,
Miscellaneous Wood Pallets,Miscellaneous Desk Parts
I). Action to approve an Animal Control Agreement with Brookings County.
Animal Control Enforcement Agreement
City of Brookings /Brooldngs County
This agreement is made and entered into this 1g�day of 1�ugust,2008,between the Brookings County
Sheriff's Office,hereafter referred to as"County"and the City of Bxookings Police Department,
rinimal Control Division,hereafter referred to as"City"for the purposes of providing animal control
services within Brookings County. Both parties understand,agree and enter into this agreement
under the following terms and conditions:
1) The City agrees to transport stray animals for the Brookings County SherifPs Office.
2) The City agrees to provide all necessary equipment requixed to perform animat control services,
including an appropriate vehicle fox transporting animals.
3) The City agrees to provide all reporting,documentation and follow-up monitoring related to
animal bite zeports occuxring within Bxookings County.
4) The City agrees to pxovide liability and workman's compensation insuxance for City rinimal
Contxol personnel while performing duties undet this agreement.
5) The City agrees to xespond to all animal bites and significant scratches.
6) The City agrees to collect all chaxges,fines and fees.(City witl reimburse only the fines to the
County)
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7) The County agrees that for any call requiring the pick-up,irnpoundment or transportation of an
animal,a Deputy Sheriff will respond to assist if requested by City�nimal Control personnel.
8) The County agrees to approve any call out by the Sheriff and/or his designate. (on duty deputy)
9) The County agrees to approve all private impounded animals.
10) The County agrees to reimbuxse the City on any unclaimed impoundments. (based on five day
hold and$60 fee)
11) The County agrees to reunburse the City at a minimum of 2 hours pex call at�25 per hour plus
mileage at the IRS rate.
12) Note live traps can be picked up by a county zesident with a deposit with the City.The county
resident is responsible fot disposal of animal.
This agreement will take effect on the 15�day of�ugust,2008,and shall remain in foxce until
ternunated. Either party may cancel this agreement upon providing thirty(30) days written notice of
the intention of cancellation.
E. Action to appoint Mayor Munsterman and Deputy Mayor Reed to a BEDC
Community Task Force for a Continuum of Care Plan for the City of Brookings.
On the motion, all present voted yes; motion canied.
First Reading—Ordinance No. 37-08: Sidewalk Sales. A fitst reading was held on Ordinance
No. 37-08, an ordinance providing for the sale and consumption of alcoholic beverages upon
propetty adjoining a licensed premises in the Ciry of Btookings,South Dakota (Sidewalk Sales).
Public Hearing: September 23`�
First Reading—Ordinance No. 36-08. A first reading was held on Oxdinance No. 36-08, an
ordinance amending and revising various builcling,properry maintenance and nuisance ordinances of
the City of Brookings, South Dakota. Public Heaxing: September 23=d
Resolution No. 69-08: Wine O�erating Agreement. A motion was made by Bardey, seconded
by Brunner, to approve Resolution No. 69-08, authorizing the City Manager to enter into a Wine
Operating Agreement for Halstead's Natural Bakery&Restaurant,LLC.,417 Main Avenue,Zach
Halstead, owner. All present voted yes;motion carried.
Resolurion No.69-08
Halstead's Natural Bakecy&Restaurant,LLC
Wine Operating Agreement
BE IT RESOLVED by the City of Brookings,South Dakota,that the City Council hexeby appxoves a
Lease�lgreement for the Operating Liquor Management 1lgreement for Wine between the City of
Brookings and the Halstead's Natural Bakery&Restaurant,LLC for the purpose of a liquox manager
to operate the on-sale establishment or business for and on behalf of the City of Brookings at 417
Main r'�venue.
BE IT FURTHER RESOLVED that the City Manager be authorized to execute the tlgreement on
behalf of the City,which shall be fox a period of five(5)years and renewal for anothet five(5)years.
On-Sale Malt License: Halstead's. A motion was made by Reed, seconded by Brunner, to
approve an On-Sale Ma1t license for Halstead's Natural Bakery&Restaurant,LLC.,417 Main
Avenue,Zach Halstead, ownez. All present voted yes;motion caxried.
2°d Reading—Ordinance No. 33-08: 2009 Budget. A motion was made by Reed, seconded by
Bartley, to appxove Ordinance No. 33-08, 2009 Budget Ordinance, an Oxdinance appropriating
Monies to Fund the necessary expenditures and liabilities of the City of Brookings for the 2009
Fiscal Year and providing for the annual tax levy and annual tax for all funds. Di.rcu.r�ion: The City
Council commended 1-Y/eldon on a,rmooth and,rucce,c,ful budget prncer.r that ava.r ea.ry to underrtand and better than
any seen by previou.r council.r. All present voted yes;motion carried.
2°a Reading—Ordinance No. 32-OS:Animal Control Amendments. A motion was made by
Reed, seconded by Brunner,to approve Ordinance No. 32-08, an Ordinance Amending Chapter 14
of the Ordinances of the City of Brookings and pertaining to the Regulation of Animals in the City
of Brookings, South Dakota,with one change to the document increasing the number of pets from
four to six that are allowed per household. All pxesent voted yes;motion carried.
Public Hearing—Ordinance No. 34-08: Rezoning, A public hearing was held on Ordinance
No. 34-08,an Ordinance rezoning Lots 3, 4, and 5,Block 1 and Lot 2,Block 2,Telkamp Addition
from a Residence R-3 District to a Planned Development District and for approval of an initial and
final development plan.
Hearing.• Sutianne Heg�Mu.reum Director, .raid the�iurpo.re of the Children'r Mu.reum of South Dakota i.r to
pmmote learning for children of all age.r and abilitie.r through irrteractive, infnrmal, hand.r-on ex.hibit.r and
demon.rtratinns. The mu.reum urill be a zvelcomin�fun, and entertaining environment which wil!he p.r�iark learning
through imagination, creativity, and di.rcovery. Exhibit.r, both in�ide and out.ride, svill be broad-ba.red to include
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,ru6jects in.rczence, engineerin� art, literature, culture,geography, and hz:rtary. It urill be a place that relate.r to it.r
region, it.r community, it.r children, anc�their learning ivant.r and need.r. It svill be a place where children and adult.r
leurn through play.
The goal of the Children'.r Mu.reum of South Dakota i,r to be an exceptionally fun and fascinating place for interactive
learning for familie.r, a.ruplbortive partner to all,rchool.r in the region, a regional de.rtination and attraction, an ongoing
a.r.ret to the city of Brookings, a dozvntown gathering place for all, and a marketing partner with other attraction.r in
Brooking.r.
A motion was made by Brunner, seconded by Reed,to approve Ordinance No. 34-08. All present
voted yes;motion carried.
Public Hearing—Ordinance No. 35-08: Rezoning_ A public hearing was held on Ordinance
No. 35-08, an Oxdinance rezoning Lot 101,Block 1, First Addition from a Residence R-2 District to
a Planned Development District and for approval of an initial and final development plan. A
motion was made by Reed, seconded by Whaley, to approve Ordinance No. 35-08. All present
voted yes;motion carried.
TID #4 Pro�ect Plan. A motion was made by Brunner, seconded by Reed,to approve the
PROJECT PLAN for Tax Increment Plan for Tax Incxement District Number Four (TID #4). All
present voted yes;motion carried. A complete copy of the project j�lan i.r available forpublic viewing in the City
Clerk'r O�ce at City Hall.
John Mills objected to the Council's passage of the TID without having any policies in place. He
felt all the developers should compete by the same rules. He has concerns with the use of TIDs.
These are a new economic development tool and new to Brookings. His concern is with unequal
application and allocation of TIDs. He is afraid the Council and city are going down a road that
applies in a checkerboard fashion with advantages to some buyers and a group of developers over
others. He apologized for not being at the Council meeting when the Valley View project was
discussed. He was surprised it was approved. He asked the Council to take a step back and review
what the real implications are of a TID. He's not speaking in favor or opposed to any specific
project,but the ovexall use of this new economic development tool without fuxthex research and
encouraged the rules apply to all and play on same course or apply to none.
Weldon agreed that tax increment financing is a controversial tool in most communities.
Developers are using TIDs as a tool to help bring down costs of what might be otherwise
neax prohibitive costs to development and construction. That is not the case for$200,000+ homes.
Those are homes that make sense financially to recover costs. The problem is homes in that price
range may be out of reach for many in our community. In oxder to have a diverse communiry,
affordability of homes is important as well. One tool to address lower cost homes ate tax
incremental districts for housing in a targeted approach. The State requizes careful and selecrive use
of TIDs.
(ADDITION) Resolution No 77-08,TIDD District#4. A motion was made by Bardey,
seconded by Brunner, to approve Resolution No. 77-08,a Resolution pxoviding for the creation of
Tax Incremental District Numbex Four in the City of Brookings. All present voted yes;motion
carried.
Resolution No. 77-08
Resolution Providing For The Creation Of Tax Incremental District Number Four
City Of Brookings
WHEREAS, the Planning Corrunission has recommended the District Boundaxies for Tax
Incremental District Numbex Foux, City of Brookings, and has recommended its cxeation; and
WHEREAS, the City of Brookings has the powers, pursuant to SDCL 11-9-2, to create Tax
Incremental District Number Four, City of Brookings, and to define its boundaries.
NOW THEREFORE, IT IS HEREBY RESOLVED:
1. Authority and Declaration of Necessity. The City of Brookings declares the necessity for
the cYeation of Tax Incremental District Number Four, City of Brookings (hereinaftex
sometimes refeYxed to as the "District"), pursuant to SDCL Chapter 11-9. Futther, the City
finds that the improvement of the area within the District is likely to enhance significandy
the value of substantially all of the other real property in the District and is necessary for
economic development within the City by the construction of affotdable housing within the
City.
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2. Findings of Blight. The City Council makes the following findings with regard to blight:
a. More than 25% of the property in the District is a blighted area;
b. Improvements to the District will significantly and substantially enhance the value of
all property within the District;
c. There is a Yeasonable likelihood that there will be affordable housing built within the
District.
d. The aggregate assessed value of the District plus the tax incremental base of all other
e�risting Districts in the city does not exceed Ten (10%) percent of the total assessed
valuation in the City.
e. The District is predominantly open bare land void of site improvements, that impairs
the sound growth of the Ciry.
£ The District also lacks drinking watex connections and fire safety systems in the areas
of unimproved land which creates an unsafe condition and substantially impaits the
sound growth of the District.
g. 'There e�cist inadequate street layouts which retard the provision of housing
accommodations.
t h. The District lacks sewerage connections in many areas which substantially limits the
sound gtowth of the Disttict.
i. Paragraphs f through i substantially impair the growth of the City, retards housing
accommodation and is a menace to the welfare of the City in its present condition.
j. The District constitutes a blighted area as defined in SDCL Chapter 11-9.
3. Findings of M�imum Percentage of Tax Incremental Districts. The aggregate assessed
value of the taxable property in the District, plus all othex tax incremental districts, does not
exceed Ten (10%) percent of the total assessed valuation of the City of Brookings.
4. Creation of District. There is hereby created, pursuant to SDCL Chapter 11-9, Tax
Incremental District Number Four, City of Brookings. The District is hereby created on
the day this Resolution becomes effective, which shall be twenty days after publication of
this Resolution.
5. Designation of District boundaries. The District shall be located with the northexn,
southern,western and eastern boundaries of the following described real property: The East
610 Feet of the West 1,110 Feet of the South 640 Feet of the North 1,150 Feet in the SE '/4
of Section 35-T110N-R50W (unplatted land north of Cardinal Drive in Huntex's Ridge
Addition.
6. Creation of Tax Incremental Fund. Thexe is hereby created, pursuant to SDCL 11-9-31, a
City of Brookings Tax Incremental District Number Four Fund,which shall be a segrega.ted
asset account. All tax increments collected pursuant to Tax Inctemental District Numbet
Four shall be deposited into the Tax Incremental District Number Four Fund. All funds in
the Tax Incremental District Number Four Fund shall be used solely for those purposes
expressly stated and reasonably inferred in SDCL Chapter 11-9.
.�ADDITIOIV) Resolution No. 78-08—TIDD #4. A motion was made by Bardey, seconded by
Reed, to approve Resolution No. 78-08, a Resolution Giving Approval To Tax Tncrement District
Number Four Project, Giving Approval To'The Issuance Of Tax Incremental Revenue Bonds To
Finance The Project And Authorizing The Sale Of Said Tax Incxemental Revenue Bonds And The
Terms Thereof. All present voted yes;motion carried.
Resolution No. 78-08
Resolution Giving Approval To Tax Increment District Number Four Project, Giving
Approval To The Issuance Of Tax Incremental Revenue Bonds To Finance The Project
And Authorizing The Sale Of Said Tax Incremental Revenue Bonds And The Terms
Thereof.
NOW, THEREFORE, BE IT R.ESOLVED AND RESOLVED by the City of Brookings as
follows:
SECTION 1. AUTHORITY, FINDINGS,AUTHORIZATION.
1.01 Authoritr The Ciry is authorized to issue its Tax Incremental Revenue Bonds, Series 2008
to finance project costs pursuant to Section 11-9-33 of the South Dakota Codified Laws. Pursuant
to Chapter 11-9 of the South Dakota Codified Laws (the "Act"), the City proposes to issue tax
inc�emental revenue bonds (as herein authorized, the "Tax Incremental Revenue Bonds" or the
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"Bonds") to finance a portion of the Pxoject costs. The City is authorized by the Tax Incremental
Act to pledge a special fund into which the City will deposit the tax increment (as defined by the
Act).
1.02 Findin�s. The City Council hereby finds and determines as follows:
(a) It is necessary to provide incentives for the development of certain real property located in
the Ciry for affoxdable housing;
(b) The City intends to provide financing of Sielex Housing Development which will be
constructed to meet the needs of low to moderate income families located in the City of
Brookings in connection with Tax Increment District Four the plan on file with the City
Finance Officex and open to public inspection (the "Project");
(c) The Tax Incxemental Revenue Bonds authorized hereby are being issued to pay costs of
Project, which have not been incurred or paid as of the date hereof and/or which the City
has heretofore declared its intention to finance with bond proceeds and for which the City
has no other available means or source of financing. The cost of the Project will not exceed
$475,000,including capitalized interest;
(d) It is in the best interests of the City to authorize tl2e borrowing of funds to pay a portion of
the costs of the Ptoject by authorizing and issuing the Bonds, consistent with the terms
approved hereby for an aggregate sum not in excess of the amount of$475,000; and
(e) That the Tax Incremental Revenue Bonds are payable only solely out of the special fund
created herein and that it does not constitute a general indebtedness of the City or a charge
against its general taxing power.
1.03 Authorization to issue the Bonds. It is hereby detertnuied to be necessary and in the best
interests of the Ciry and its inhabitants that ehis City Council authorize,issue and sell the Bonds (the
"Bonds") in order to finance a portion of the cost of the Project. The Mayor, City Managex and
City Finance officer are authorized to negotiate the sale and terms of the Bonds subject to the
limitations of the law and this Resolution. The Bonds may be issued by the City without an election
pursuant to SDCL�11-9-34.
SECTION 2. SALE,BOND PURCHASE AGREEMENT AND OFFICIAL STATEMENT.
2.01 Sale. The Bonds authorized by this Resolution shall be issued in an aggregate principal
amount not exceeding $475,000 and shall be pxivately placed due to the unique nature. The Bonds
will bear interest at a xate or rates per annum and will mature over a period set forth in the bond
purchase agreement or similar document. The City intends to sell the Bonds to a local ox regional
financial institution, underwriters ar private individual or individuals (the "Puxchaser").
2.02 Bond Purchase Agreement. The execution of a bond purchase agreement or similar
document setting forth the final terms of the Bonds is hereby approved and authorized. The
execution of said document by the Mayor and City Finance officer shall be conclusive evidence of
such agreement and shall be binding upon the City.
SECTION 3. TERMS OF BONDS.
3.01 Date,Amount,Maturities and Interest Rates. The Bonds shall be dated in calendax year
2008. The principal amount of the Bonds shall not exceed the lesser of$475,000 or any statutory or
constitutional debt limitation. The term of the Bonds shall not exceed 20 years. The weighted
avexage interest xate on the Bonds shall not exceed 8.00%.
3.02 Form of Bonds. The Bonds shall be prepared in substantially the form on file with the City
Finance officer and open to public inspection.
3.03 Execution. The Bonds shall be signed by the manual ot facsimile signatures of the Mayor
and City Finance officer of the City and countersigned by the manual ox facsimile signature of an
attorney resident in the State of South Dakota and in case any officer whose signature shall appear
on any Bond shall cease to be such officer before the delivery of such Bond, such signature shall
nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in
office until delivery.
3.04 Redem�tion. Terms of optional or mandatory redemption shall be set by negotiation with
the purchaseY of the Bonds.
(i) A��ointment of Tnitial Registrar. The Ciry hereby appoints the Finance officer, as
Bond xegistrar, transfer agent and paying agent (the "Registrar") for the Bonds.
3.05 Authentication and Deliverv. No Bond shall be valid or obligatory for any purpose or
entided to any security or benefit under this Resolution unless and until a certificate of
19 �
authentication on such Bond has been duly executed by the Registrar by the manual signature of its
authorized representarive. Certificates of authentication on different Bonds need not be signed by
the same representative. The executed certificate of authentication on each Bond shall be conclusive
evidence that it has been authenticated and delivered under this Resolution. When the Bonds have
been so prepared, executed and authenticated, the City Finance officer shall deliver the same to the
Purchaser thereof upon payment of the purchase price in accordance with the provisions of the
Bond Purchase Agreement and the Purchaser shall not be obligated to see to the application of the
purchase price. Upon delivery of the Bonds to the Purchaser, the Ciry Finance Officer shall file with
the Secretary of State, on the form pxovided by the Secretary of State, the information required by
SDCL, Section 6-8B-19.
SECTION 4. SECURITY PROVISIONS; FUNDS AND ACCOUNTS AND OTHER
COVENANTS AND DETERMINATIONS.
4.01 Pledge Tax Increments. Pursuant to the Act, the City shall receive Tax Increments. All Tax
Increments shall be placed in the Tax Incxemental Revenue Bond Fund. The Tax Increment is
irrevocably pledged and appropriated to the payment of the Bonds. For ptzrposes of this
Resolution, "Outstanding Bonds" shall mean these Bonds and any parity lien bonds herebefore ox
hereafter issued pursuant to this Resolution. The Tax Incremental Revenue Bond Fund shall be
used and applied only in the manner and ordex hereinaftex set forth. The holders of the
Outstanding Bonds shall have a lien against the Tax Incremental Revenue Bond Fund for payment
of the principal and interest and may either at law or in equity protect and enforce the lien.
4.02 Tax Incremental Revenue Bond Fund. The City Finance officex is he�eby authorized and
directed to establish and shall maintain a special fund, the Tax Incremental Revenue Bond Fund, as
a separate and special fund in the ftnancial records of the City until all Bonds issued and made
payable therefrom, and interest due thereon, have been duly paid or dischaxged. All collections of
the Tax Increments shall be credited, as received, to the Tax Incremental Revenue Bond Fund.
Within the Tax Incremental Revenue Bond Fund are various separate accounts to be maintained by
the City.
(a) Construction Account. There is hereby cteated and established as an account of the Tax
Incremental Revenue Bond Fund, a "Construction Account". There shall be credited to the
Construction Account the proceeds from the sale of the Bonds remaining after payment of
the expenses of issuing the Bonds. All moneys credited to the Construction Account shall
be applied solely to the payment of the costs of the Project or reimbursement therefore. For
the purposes of this Resolution, "costs of the Project" shall include costs of acquiring,
construction, and installing the Project including cost of capitalized interest, labor, services,
materials and supplies, financial, architectural, engineering, legal, accounting and other
professional expenses relating to the Project, the costs of acquisition or properties, rights,
easements, or other interest in properties, insurance premiums, and the costs of publishing,
posting or mailing notices in connection with the Project. All sums derived fYOm the
investment of moneys in the Construction Account shall remain in and become part of such
account. Upon completion of the Project and when all costs of the Project have been paid,
any balance remaining in the Construction Account shall be credited to the Principal and
Interest Account hereinafter established. All public project costs shall be bid in accordance
with South Dakota law.
(b) Princi�al and interest Account. There is hexeby created and established as an account of the
Tax Incremental Revenue Bond Fund, a "Principal and Interest Account." Immediately
upon delivery of the Bonds, there shall be credited to the Principal and Interest Account the
amount of any accrued inteYest received from the Purchaser. Periodically, as needed there
shall be withdrawn from the Tax Incremental Revenue Bond Fund and credited to the
Principal and Interest Account an amount which will equal at least the next principal and
interest payment. In all events there shall be cxedited to the Principal and Interest Account
amounts sufficient to pay the principal of and interest on the Outstanding Bonds as the
same become due.
(c) Subordinate Lien Bonds. After making the above required payments, any remaining Tax
Increment shall be used for the payment of the principal of and interest on any additional
Tax Incremental Revenue Bonds having a lien which is subordinate to the lien of the
Outstanding Bonds, and for a reserve fund as additional security for the payment of such
subordinate lien bonds.
4.03 Additional Debt.
(a) No additional Bonds shall be issued, be made payable from the Tax Incremental Revenue
Fund or Tax Increments which is prior to or superior to the lien of the Bonds authorized
herein.
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(b) Nothing in this Resolution shall be construed in such manner as to prevent the issuance by
the City of additional bonds payable from the Tax IncYement.and constituting a lien upon
the Tax Increment and the Tax Incremental Revenue Fund equal to or on a parity with the
lien of the Bonds authorized herein (such addirional bonds being referred to herein as
"Additional Bonds"),provided that it is feasible and the Bond Holder agrees in writing.
(c) Nothing herein shall prevent the City from issuing Bonds payable from the Tax Increment
or Tax Incremental Revenue Bond fund or having a lien thereon which is junior and
subordinate to the lien of the Bonds authorized herein. The City may incur expenses in
connection with the Tax Incremental District Number Four which shall be reimbursed
through the tax inczement. Said obligations shall be junior and suboxdinate to the Bonds
whether evidenced by an accounting notation or instrument of indebtedness.
4.04 Pledge of State of South Dakota. Puxsuant to SDCL 11-9-39.1, the State of South Dakota
does pledge to and agree with the holders of any issued under 11-9 that the state will not alter the
xights vested in the bond holders until such bonds, together with the interest theteon, with interest
on any unpaid insta�lments of intexest, and all costs and expenses in connection with any action or
proceeding by or on behalf of such holders, are fully met and discharged.
4.05 Covenants of the Citv. The City hereby irrevocably covenants and agrees with each and
every holder of the Bonds that so long as any of the Bonds remain outstanding:
(a) It will not amend or repeal the Tax Increment or the allocation of revenues thereof to the
Tax Inctemental Revenue Bond Fund, ox in any way that would adversely affect the amount
of Tax Incxemental Revenues which would otherwise be collected and deposited to the Tax
Incremental Revenue Bond Fund.
(b) It will admituster, enforce, and collect, or cause to be administered, enforced or collected,
the real property taxes and shall take such necessary action to collect delinquent�ayments in
accordance with law.
(c) It will keep ox cause to be kept such books and records showing the proceeds of the Tax
Incremental,in which complete entries shall be made in accordance with standard principles
of accounting, and any owner of any Bond shall have the right at all reasonable rimes to
inspect the records and accounts xelating to the collection and receipts of such Tax
IncYemental.
(d) In the event the real property taxes of the City is replaced and superseded by the state
collected-locally shared tax or taxes, ox is replaced and superseded in some other manner
form other source or sources, the revenues derived by the City from the replacement source
ot sources, as received by the City sha11 be appropriated in the same manner as if the City
had levied and imposed a real property ta�c. From and after the date of a replacement, the
Outstanding Bonds shall have a first and prior lien, but not necessarily an exclusive lien,
upon such replacement revenues to the extent therein specified.
4.06 Defeasance. When all the Bonds issued have been discharged as provided in this section, all
pledges, covenants, and other rights granted by this Resolution to the registered owners of the
Bonds shall cease. The City may discharge its obligations with respect to any Bonds which axe due
on any date by providing to the Paying Agent on or before that date a sum sufficient for the
payment thereof in full; or, if any Bond should not be paid when due, it may nevertheless be
discharged by providing to the Paying Agent a sum sufficient for the payment thereof in full with
interest accrued to the date of such deposit. The City may also discharge its liability with reference
to all Bonds which are called for redemption on any date in accordance with their terms by
depositing funds with the Paying Agent on or befoYe that date in accordance with theiY terms by
depositing funds with the Paying Agent on or before that date, in an amount equal to the principal,
interest, and premium, if any, which are then due thereon, provided that notice of such redemption
has been duly given. The City may also at any time discharge this issue of Bonds in its enritety,
subject to the provisions of law now or hereafter authorizing and regulating such action, by
depositing irrevocably in escrow, with a bank qualified by law as an escrow agent for this purpose,
cash or United States government obligations which are authorized by law to be so deposited,
beaxing intexest payable at such times and at such rates and rnaturing on such dates as shall be
requiYed to provide funds (without an reinvestment) sufficient to pay all principal, interest and
premiums, if any, to become due on all Bonds on and before maturity, ox, if a Bond has been duly
called for redemption, on or before the designated redemption date.
4.07 Certification of Proceedin�s. The officers of the City are authorized and directed to prepare
and furnish to the purchasers of the Bonds certified copies of all proceedings and records of the
City relating to the authorization and issuance of the Bonds and such other affidavits and certificates
as may reasonably be required to show the facts relating to the legality and marketabiliry of the
Bonds as such facts appear from the officer's books and records or are othenvise known to them.
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All such certified copies, certificates and affidavits, including any heretofore furnished, shall
constitute representations of the City as to the correctness of the facts zecited therein and the action
stated therein to have been taken.
SECTION 5. TAX MATTERS; CERTIFICATION OF PROCEEDINGS AND
MISCELLANEOUS.
5.01 Tax Matters. The interest component on the Bonds shall be taxable.
SECTION G. INTERPRETATION, AUTHORIZATION OF OFFICERS AND
RESOLUTION CONSTITUTES CONTRACT.
6.01 Inter�retation. If any section, paragraph, clause or provision of this Resolution shall for any
reason be held to be invalid or unenforceable, the invalidity or unenforceabiliry of such section,
paragraph, clause or provision shall not affect any of the remaining provisions of this Resolution.
6.02 Authorization of Officers. The Mayor, officets of the City and the City Finance Officer of
Brookings are authorized and directed to prepare and furnish to the purchasexs of said Bonds, and
to the attorneys passing on the legality of said Bond issue, copies of all proceedings relating to
Bonds and other certificates and affidavits showing the facts affecting the legality thereof as shown
by the books and records of the City under their custody and control or as otherwise known to them
and such copies, certificates and affidavits, including any heretofore furnished, shall constitute
representations of the City as to the facts therein recited.
6.03 The officers of the City are hereby authorized and directed to take all other action necessary
or appropriate to effectuate the provisions of this Resolution , including without limiting the
generality of the foregoing, the printing of the Bonds, and the execution of such certificates as may
reasonably be required by the Purchaser, including, without limitation, certification relating to the
signing of the Bonds, the tenure and identiry of the City's officials, the exemption of interest on the
Bonds from federal income taxation, the receipt of the Bond purchase price and, if in accordance
with the facts, the absence of litigation affecting the validity thexeof.
6.04 Resolution Constitutes Contract. Aftex the Bonds have been issued, this Resolution shall
constitute a contract between the City and the holder or holders of the Bonds, and shall be and
remain irrepealable and unalterable until the Bonds and the interest accruing thereon shall have been
duly paid, satisfied and discharged.
6.05 Rules of Construction. If any section,paragraph, clause or provision of this Resolution shall
for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such
section, paragraph, clause or provision shaIl not affect any of the remaining provisions of this
Resolution. The tide or caption of each paragraph are for convenience purposes only and do not
define scope or intent of paragraph.
Den-Wil Tax Increment Assistance Rec�uest. Weldon provided the following report to the City
Council and public: `The City ha.r received a reque.rt to u.re tax increment e.xpenditure.r forpublic improvement.r
avithin Tax Increment Di.rtrict#1 a.r.rociated zvith the Den-W/il mixed u.re�imject. TID #1 wa.r e.rtabli.rhed by the
City in 2007 and include.r the SDSU Innovation Cam�iu.r a.r well a,r,rubstantial amount of developed and
undeveloped prnper y,routh torvard 6`b Street. (See attached map of TID #1) The increment reque.rted would be
generated by the increa.re an propery value from the Den-W�il prnject. The.rtated public purpo.re of the creation of thi.r
tax increment di.ctrict svas to pay for infra.rtructure improvement.r of the SDSU Innovation Campu.r. It 1va.r
anticipated increment would begenerated from new development both in.ride and out.ride the Innovation Campu.r.
The purpore of thi.r memo i.r to pmvrde backgmund information and to.rugge.rt a "conceptual",rolution in order to keep
the project progressing. Final approva!i.r not contemplated u�ith thi.r memo. Detail.r need further analy.rrr but the
developer and.rta�'are a.rking the Council for rome policy direction on.rome a.+pect.r of thi.r project.ro re.rource.r can be
e.acpended svi.rely in accordance svithyourpolicy directive.r.
The follosving di.rcu.r.rion provide.r information about the�roject and related issues as a means of working tou�c�rd u
final resolution that avidl accompli.rh the przvate and publicgoal.r of thi.r project.
De.rcription of Den-I.Vi!Project.• The pmject i.r McCrory Village, a mixed u.re re.ridential and commercial located ju.rt
.routh of the Innovation Campu.r on the north.ride of 10`h Street bet�veen 22id Avenue and the proposed right-of-avay
for the future 25tb Avenue. The legal de.rcription i.r Lot 6, Block 1, Telkamp Addition. A plat map i.r attached.
Pha.re I include.r a three.rtory.rtructure svith 120+ up.rcale apartment.r on three floors and ap�iroximately 5,000
square feet of commercial s�ace on dhe firrt floor. The property i,r being re-tioned for thi.r intended u.re. Phafe II uril!be
directly acro.r.r the.rtreet on the.routh.ride of 10`h Street and svould be built at a timeyet to be determined. Pha.re II i.r
envi.rioned a.r additional mixed u.re for re.ridential and commercial u.re but:vith a higherpercentage dedicated to retail
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u.re. The developer ha.r installed utilitie.r in 10'�'Street and need.r to yet in.rtall the.rtreet, curb and gartter ea.rterly to the
end of theirproperty. The e.rtimated con.rtruction co.rt of the Pha.re I building i.r,�'10.1 million.
Other needed improvement.r.•In order for the project to be complete, there are.ceveral other improvement.r that need to be
undertaken. In addition to the.rtreet completion of>0'�Street avhich the developer i.r doin� the right-of-way for future
25'�'Avenue need.r to be dedicated from 9`�'Street to the SDSU Innovation Campu.r. I.Ylhere 25`1i inter.rect.r svith �0`h,
sve are envisioning a continuou.r,rtreet. IYlhere 25'�'norZh of 1 D'�'goe.r to the Innovation Campu.r, thi,r right-of-way
would be for emergency vehicles,po.r.cibly delivery vehicle,r, but primarily it aa�ould be a pede.rtrian/Gicycle `platia"
connecting McC;rory Village and earisting commercial and re.ridential development to the.routh u�ith the Innovation
Campu.r. T/�i.r dedicated right-of-way for 25`�'Avenue i.r a component of the City'.r ma.rter.rtreet plan and would be
advantageous to encouraging development on the remaining 25 acre.r of farmland ea,rt of this area to Inter.rtate 29
right-of�Qy.
Other a.r.rociated improvement.c would be the in.rtallation af avater, .ranitary.rewer, .rtorm drainage, .rt�eet,rurface, curb
andgutter, .ctreetlight.r, .rideivalk.r, land.rcapin� and.rignage on 10`u Street and 25`b Avenue from 9`�Street to the
Innovation Campu.r.
E.rtimated co,rt.r of�iublic insprovement.r: The folloaving are e.rtimated co.rt.r of the needed public improvements that
could be financed by tax incrementgenerated from thi.r project if the Council.ro de.rire,r. Plea.re be advi.red that any
increment.rpent on the.re de��cribed improvement.r dimini.rhe.r the amount of increment available for infra.rtructure in the
Innovation Campu.r That price tag for completing Pha.re.r II-I V i.r�3.8 million in today's dollarr for the Innovation
Campu.r. Pha.re I i.r currently under con.rtruction and i.r being financed by the Growth Partner.rhip.
He provided preliminary co.rt e.rtimates for di.rcu.r.rion only: Acqui.rition of right-of-way for future 25`b Avenue
(,�'383,737), In.rtallation of infia,rtructure in 25`h, connection to �O�b (,�'300,000�, Lighting(�'175,000), Ilrnd.rca�iing
(,�100,000), Sidewalk.r,pede.rtrian platia'to Innovation Campu.r(�120,000)fora total of$1,078,737.
Incrementgenerated by McCrnry Tlillage project.•A.r the above li.rt cort.rtitute.r the `u.re.r"of revenue, the ".rource.r"of
revenue is the amount of tax incrementgenerated by thi.r project that could be available to pay for them. According to
the developer'.r financial advisor, after the di.rcretionary formula i.r applied to the pmperry taxe.r, Pha.re I rvillgenerate
,�'118,495 annually to service thi,r debt. If the project begin.r con.rtrzrction immediately, the firrt increment urill not be
available until 2011 and thi.r ful!amount(,B 118,495)will not be available until 2014 becau.re of the di.rcretionary
formarla. Thi.r calculation, however, ha.r notyet been independently verified by City°r fznancial advi.ror, u�hich will have
to be done.
Financing of the imprnvement.r:Since the imp�nvement.r ivill need to be in.rtalled at the beginning af the project, and
.rince tax increment i.r available in annual payment,r over time, the City will need to finance the.re cott.r u1b fmnt either
through ca.rh or the i.r.ruance of deGt. Annua!incrementgenerated through nesv taxgrowth tvidl be u.red to �tir�the
debt or repay the ca.ch outlay.
Diverrion of u.re of increment.•A.cyou know, TID #1 tva.r e.rtabli.rhed for the purpo.re ofgenerating increment to pay
for infia,rtructure in the Innovation Campu.r. Pha.re I i.r being financed by the Gro�vth Partnerrhip but Goal#3 from
the City'r Strategic Plan i.r to finance the.rub.requent infra.rtructure pha.re,r for the Innovation Campus. The TID
district sva.r intentionally made larger than the boundarie.r of the Innovation Campu.r for the e.xplicit purpo.re of
capturing increment over a larger area to he p aaelerate the available increment to pay for the infra.rtructure.
In a memo to you dated June 3, 2008, I outlined the.rpecific.r af the financing plan:ve are p�nceeding with a.r a mean.r
of executing thi.r goal. That memo al.ro predicted a private development may wi.rh to u.re generated increment to pay for
a.r.rociated public improvement.r. McCrory Tlillage i.r thatproject. A policy deci.rion will need to be made a.r to how
much incrementyou wi.rh to divert from the Innovation Campu.r infra.rtructure to pay for infra.rtructure a.r.rociated�vith
25'�'Avenue and 10`h Street for the propo.red McCrory Village project.
I believe a.rtrong ca.re can be made for u�ing.rome of the increment for the McCrory Villagepmject a.r oppo.red the
Innovation Campu.r infra,rtructure. Fir.rt,McCrory Village i.r an imminent prnject that could he p `jump-.rtart"
private development in the Innovation Campu.r ivhich is more long-range. Second, it 2vi11 al.ro addres.r a hou�inggoal
for thi.r.rtyle of apartment.r a.r identified in our hou.ring�ilan. Third, it urill encourage retail development in area.r on
both�ide.r of 25'�'Avenue and>0'h Street. Fourth, it complete.r a goal of in.rtalling 25'h Avenue a.r a major.rtreet
tran.partation sy.rtem identified in our ma.rter plan. What'.r more, any neav development that occarrs in the di.rtrict
generates more increment that can be u.red toward the Innovation Campu.r infra,rtructure.
Project plan need.r to be prepared.• Tax Increment Di.rtrict#1 need.r to have a project plan zvritten and filed�vith the
.rtate and county. The la,rt officral action taken wa.r the e.rtabli,rhment of the di.rtrict. The pmject plan need.r to
delineate the work to be completed avith the generated increment. A.r a reminder, the infra.rtructure mu.rt be com,bleted
within fiveyear.r of certification of the di.rtrict and in accordance with the project plan but increment can be captured for
20 year.r.
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`Remnant"outlot created by,rtreet alignment.•Ta complicate the i.r.rue further, the alignment of the propo.red North
25`�'Avenue a.r it enterr the Innovation Campar.r create.r an outlot.94 acre in.ritie between the right-of-svay for thi.r
.rtreet and the ea.rt edge of the McCrory Village project. A.r a condition of dedicating the right-of way, tbe owner want.r
to.rell thi.r lot. I�e have an intere.tt in acquiring approxe�nately one-third of thi.r parcel a.r BMU-Ssviftel�vould like to
locate a.r2vitch building at thi.r location. The balance of the lot remain.r available for a�mall commercial developmerrt,
parkin� or open space. At the time of avriting thi.r memo, a price ha.r notyet been e.rtabli.rhed by the olvner.
Analy�i.r of e.x�enditure.r financed by TlFproceed.r: 1-Y/hile the above itemitied co.rt e.rtimate.r totaling,8'1,078,737 are
permitted a.r TIF e.x�enditures under.rtate laui, the que.rtion become.r hosv much doe.r the City wa.r to u.re for thi.r
project that svould notgo toward the Innovatiorr Campu.r;and which of the.re item.r the City de�ire.r to finance. The
primary item of concern is the purchase of right-of-way for the future 25'�'Avenue. �.r a matter of policy, the City has
required developer.r to dedicate the nece.r.rary right-of-avay for their re.rpective project and ha.r not purchased it. The
rea.ron being is that.ruch right-of-way i.r nece.r.rary for the.rucce.cr of the project and ultimately benefit.r the project. Thi.r
i,c the po.rition I put forth to the developer and have advocated a po.rition the City not pay for the right-of-way a.r.roczated
ivith the exten�ion of 10'�Street and 25`�Avenue South to connect to 9'h Street. Hoavever, I did.rugge.rt that City
may be interetted in purcha�ing the area a,r.rociated�vzth 25ib Avenue NORTH of 10`h Street a.r the connection to the
Innovation Campu.r. Since thi.r corridor would al.ra.rerye a.r a pede.rtrian and bikeway connection to the Innovation
Campu.r, I sugge.rted the City may�a�i.rh to con�ider purcha,ring thi.r parcel, again depending upon the price. Keluted to
thi.c i.r, of course, the "outlot"parcel de.rcribed above. Sznce BMU-Suriftel i.r intere.rted in a.rmall piece of thi.r parcel,
and the balance could be re-sold, the final di.rpen.ration of thi.r parcel i,r problematic and it.r r�.rolution need.r to be part
of the.rolution.
The other eac�ien.re.r are all public impmvement.r and I would.rugge.rt they be financed all or in part urith increment.
If the City doe.r not u.re incr�ment for the right-of-way acqui.rition for 25'b Street a.r li.rted above, and doe,r u.re increment
to finance the other improvement.r, the co.rt dmp.r to,�'695,000 plu.r ayet-to-be determined amount for the all or any
portion of the outlot and the a�a north for the connection to the Innovation Carrrpu,r.
Po.rnble.rolution to the right-of-�vay acqui.rition co.rt.•The developer ha.r.rugge.rted a fznanczng mechani.rm called "co.rt
recovery"for the right-of-avay. Thi.r method pmvide,r for the developer paying the co.rt of right-of-way acqui�ition for
ZS`�Avenue betzveen 9`�and 10'b, a.r wedl a.r the exten.rion of 10`�', and then filing a "co.rt recovery"again.rt adjacent,
benefiting pmperty o�ner.r. When.raid property develop.r, that new pmject developer will reimburre the original
developer the pro rata.rhare of the co.rt as mea,rured again.rt the benefitting parcel;generally on a linear foot basis. It is
ba.rically a.ry.rtem of allouring a private party to as.re.r.r their neighbor for improvement.r and provide.r for eguity to
property that benefit.r from.rhared infra.rtructure when development i.r e.xpected to occur at d�erent time.r. Thi,r i.r
permitted under SDCL 9-43 to 9-49.
Policy con,rideration.r
The policy que.rtion.r before u.r are:
1) Doe.r the City want to use any incr�ment for the McC'rnry Vidlagel7mject�
2) Ifye.r, to�vhat level und for what expenditure.r?
3) At what financiad level i.c the City irrtere.rted in uring TlFproceed.r to acguire the outlotparcel and the
connection lot to the Innovation Campus knosving some of thi.r ha.r value to BMU-Ssviftel,•and the balance
could be re-.rold�
Obviou.rly, the an,rrver.r to the.re que.rtion.r ar�.romewhat dependent upon horv much incr•ement i.rgenerated to pay for
them which i.r pmjected above but need.r mo�analysi.r for a quantitative an.cwer."
Weldon requested policy direction from the City Council as to conceptual support for this proposal.
Dennis Bielfeldt,project developer, said he was very excited about the innovation village and its link
to the innovation campus. As a professor at SDSU, he loves ideas and research and is particularly
excited about building a research campus. He is working closely with Teresa McKnight, Innovation
Campus Dixector, on the project. His project would be upscale with an indoor pool,underground
heating parking,wash bays, corpoxate suites,guest suites and a state of the art business center. In
addition, the lower ievel would include 5,500 sq�axe fee of retail space. He said he believes in
Brookings and the future of SDSU. This is not a cheap project. Estimated cost is $12 million. He
has the opportunity to acquire additional land that will enhance the pxoject. However, acquiring
land isn't cheap and isn't something he can do on his own. He said he is asking for a conceptual
buy-in from the Council on the development and a TID. He will need the Council's support and
parmership on this long-term project. He can't do all of it on his own;buying all the land and
dedicating right-of-way. He said utilizing the innovation campus TID will take some money out of
the campus at the beginning but will build south to genexate revenue. He noted that the City is
already 1 '/z years into the 5 year TID.
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ACTION: A motion was made by Bardey, seconded by Reed, to direct the city manager to continue
to work with the developers and land owners to come up with a plan that will work with the original
intent of the TID district and that intent is preserved. All present voted yes;motion carried.
(.ADDITION) Event T�es in Public Facilities. Bezdichek requested the Council review the
types of events held in public facilities. He said he specifically has a problem with an upcoming
event at the Swiftel Center related to cage fighring. He is opposed to any future uses that�e similar
and would take steps to cut funding to the centex if it occurs again.
A motion was by Reed, seconded by Bezdichek, that the City Council review event types that can be
held at the Swiftel CenteY at a future Council work session. All present voted yes;motion carried.
TABLED Resolution No. 67-08—Real Property Transfer A motion was made by Brunner,
seconded by Whaley, to remove from the table Resolution No. 67-08. All present voted yes;motion
caxried. A motion was made by Bardey, seconded by Reed, to approve Resolution No. 67-08, a
Resolution Authorizing The Transfer Of Real Property To Brookings Economic Development
Corporation, Inc. For Economic Development Purposes. All present voted yes;motion carried.
Resolution No.67-OS
A Resolurion Authorizing The Transfer Of Real Propetty To Broolungs Economic
Development Corporation,Inc. For Economic Development Purposes
BE IT RESOLVED by the City Council oE the City of Brookings,South Dakota as follows:
WHEREr1S,the Bzookings Economic Development Corporation,Inc.desires to puxchase two
parcels of real pxoperty,one approximately 6 acxes and a second approximately 7 acres,located in
Telkamp rlddit'ton or the Freeland rlddition to the City of Bxookings,South Dakota,for the price of
zero dollars($0)per acre,and
WHERE�S,fox the expxess purpose of furthering economic growth and development of the City of
Bxookings,South Dakota the Bxookings Economic Development Corpozation,Inc.agrees to sell,
convey or otherwise transfer said property to a legal entity which is,or will be,conducting business in
the City of Bxookings,South Dakota,and
WHERE�IS,it is in the best intexests of the City of Brookings that the Ciry provide its economic
development assistance in this matter to aid and assist with the completion of the aforesaid
transacuon which will fuxthex economic development in the City of Brookings;and
WHERE�IS,the Ciry is authorized to entex into this transaction as an economic development activity
under the laws of the State of South Dakota;
NOW THEREFORE,IT IS HEREBY RESOLVED by the City Council of the City of Brookings,
South Dakota,as follows:
A. That the City convey tide to the above-described property to the Bxookings Economic
Development Corporation,Inc.for the purposes of furthering economic growth and
development of the City of Brookings,South Dakota;and
B. That the Mayor,City Clerk and City Manager are authorized to execute the required doczunents
in accotdance with this Resolution.
Ad.�ourn. A motion was made by Whaley, seconded by Reed, to adjourn. All present voted yes;
motion carried. Meeting adjourned at 8:02 p.m.
CITY OF BROOKINGS
o�e..c,rY Scott . Munsterman,Mayor
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Shari ornes,City Clerk