HomeMy WebLinkAboutCCMinutes_2009_06_23 37 �
Brookings City Council
June 23, 2009
The Brookings City Council held a meeting on Tuesday,June 23, 2009 at 5:00 p.m., at City Hall with
the following members present: Mayor Tim Reed, Council Members Julie Whaley,John Kubal,
Mike McClemans,Mike Bartley,Jael Trieb, and Tom Bezdichek. City Manager Jeff Weldon, City
Attorney Steve Britzman,and City Clerk Shari Thornes were also present.
Oath of O�ce and Presentation of Certi�cate of A��ointment as Council Member to Jael
Trieb•-
Information on new Crimesto��ers Program. Steve Hogie and Lt. Derrick Powers provided
information regarding the new Crimestoppers Program initiatives. Powers said the Brookings Area
Crime Stoppers is a cooperative program which brings together the Brookings area law enforcement
agencies, the community, and the media to solve crime. The progxam offers citizens an anonymous
method for providing vital information to law enforcement regarding unsolved crime. Crime
Stoppers is dedicated to the reduction of crime, to the prompt solution of crimes, and to reward.ing
persons who provide information that leads to the arrest of criminals. It is a nonprofit organization
made up of local citizens who axe interested in assisting local law enforcement agencies with
combating crime and improving community safety. Cash rewards of up to$1,000 are offered to
anyone furnishing anonymous information that leads to the arrest of criminals involved in certain
misdemeanor cases and all felony cases. The Bxookings Area Crime Stoppers program depends on
private contributions from the public to provide rewards used in this program. Donors include
individuals,businesses, clubs,associations and other organizations.
Mayor Reed asked the Council if there was interest in supporting this progxam financially. Counc.il
consensus was to direct the City Manager to work with the organization on a funding amount and to
include in the 2010 budget process for Council review.
�wiftel Center Ex�ansion Plans. Weldon said the purpose of this agenda item is to attempt to
make some progress on Goal#6 of the 2009 Strategic Plan. This involves a decision on a potential
expansion of the Swiftel Center. As background information, there were two studies performed. A
feasibility study completed by VenuWorks Consulting of Ames, Iowa and a validation study
completed by HVS Convention, Sports,and Entertainment of Chicago, Illinois. Presentations have
been given by both consultants on these iwo reports at previous council meetings. Both studies
identified market demand, facility xequirements,lost market share, and economic unpact estimates.
The data,clearly justifies an expansion if properly done.
The proposed expansion comprises three distinct components. First,it involves an expansion and
modification to storage areas,upgrade and relocation of the kitchen,and relocation of offices.The
latter is chiefly accomplished by acquiring the County Resource Centex. These modifications are
needed as basic facility upgxades that reflect the substantial changes that have occurred since the
opening of the facility in 2001. These types of changes are common in public facilities. 'I'hese
pxoposed°changes reflect the growth and intensified use of the facility fxom how it was originally
envisioned, designed,and built.
The second component involves modification of the existing Daktronics Banquet Room into three
individual rooms which can be further sub-divided into a total of six, smaller break-out xooms. The
addition of a ballroom/convention hall can also be divided into a ma�cimum of six additional break-
out xooms.
The total estimated cost of this project is �7 million.
The third component is the addition of a hotel with 80-100 rooms attached to the southeast comer
of the Swiftel Center. This hotel would be accomplished either through selling a portion of the
property for the hotel or a land lease. T'he hotel would be constructed, financed, and owned
privately.
Although the methodology was varied between the two reports,and the specifics on a few details
differ;the basic fundamental conclusion of the two reports is the same: that properly designed and
constructed,an expanded Swiftel Center could significandy attract more events to Brookings.
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The primary public policy reasons for expanding the Swiftel Center can be synthesized into four
basic issues: 1) Capture more market share of events with improved facilities; 2) Increase the
economic impact for the entire community and region having captured more events and attracting
moYe visitors;3) Capitalize on a unique visitor"niche" for tourism in the absence of other tourism
venues;and 4) Capitalize on the current investment of the existing Swiftel Center by improving it to
make it more versatile and multi-purpose.
The following is a more detailed discussion of each of these four issues:
(1) Ca�ture moxe market share of events with better facilities. The original"Agri-Plex" facility was
envisioned as primarily an agricultural exhibit hall with a rather limited scope of events that it was
designed to accommodate. Over the years, the Swiftel Center's popularity resulted in the facility
being called upon to host a wider range of events beyond agricultural exhibits to concerts, sporting
events, training meetings, conference and conventions, and receptions. Clearly, this usage
demonstrates the facility is meeting a need for the community. During th.is time, the Swiftel Center
has experienced litde in the way of physical upgxades or improvements necessary to meet the
changing needs of event sponsors from the original agricultural exhibit concept. What's more, the
current configuration does not efficiendy allow for multiple simultaneous events that would
capitalize on the systems and personnel currently in place. The research has identified events that
could be attracted to the Swiftel Centex as noted on page 56 of the VenuWorks Study,if the facility
had additional amenities to meet their needs. In the VenuWorks study question number 10 on page
vui of the Appendix indicates that 77.7% of the xespondents rota,te theix events. Brookings is only
capturing 12.5% of that business currendy.
(2) Economic im�act. From 2001 through 2008 the Swiftel Center generated$65.6 million in
estimated economic impact. The model used for calculating the economic impact at the Swiftel
Centex is from the International Associa,tion of Assembly Managers, "Calculating Economic
Impact"by Bonnie Finnie, Facility Manager Magazine, 1997 and Minnesota Office of Toutism,
Central Minnesota Events Center, Review of Economic Impact,Revenues and Expenditures
Assumptions. Thxough 2008 the Visitor spending numbers used by the Bxookings Convention and
Visitor Bureau were $40.00 a day for a daily visitor and an additional$65.00 for an overnight stay.
The Swiftel Center hosted 1,464 events from 2001-2008 which equated to 2,047 event days and total
attendance of 706,783.
Based on the HVS Study on page 6-14 table 6-G the projected room night demand in 2013 will be
24,398. If you calculate that by the current Brookings CVB overnight visitor spending,the
economic itnpact would be$6.1 million. According to the VenuWorks Study on page 68, calculating
only two percent of attendees stay overnight, the projected economic impact for the expanded
facility will increase in year five of operation fxom appro�mately$9.1 million a year to over$21.7
million a year.
In 2009 the Brookings CVB adjusted their daily visitor spendi.ng formula from$40.00 a day to
$60.00 a day and an overnight visitor spending from$65.00 to $80.00. For the first quaxter of 2009
the Swiftel Center has generated over$3.6 million in local economic impact utilizing these updated
numbers.
(3) Visitor `niche'market. The absence of traditional tourism amenities in Brookings suggests the
need to develop a `niche'market, or other ways in which to bring visitors to the area. The lack of
recreational lakes and outdoor features,large-scale special events or celebrations, or tourist
attractions hinders our ability to attract visitors. As the Brookings Visitor Promotion Committee
will attest,reasons to visit Brookings stem from a limited number of special events such as the
Summer Arts Festival,athletic and recreational events held at athletic facilities and the Larson Ice
Center, and special events held in conjunction with SDSU ox at the Swiftel Center. For that reason,
we must fully develop our potential in these "niche'markets where we can bolster the economic
itnpact for the local business community, the state's four percent sales tax,and the City's two/three
percent sales tax revenue stteam. When making financial decisions, the Visitor Promotions
Committee takes a number of items into consideration. The greatest consideration is given to events
that make a significant economic unpact on the Brookings Community. The Committee also takes
into account the ability of an event to draw a majority of attendees from out-of-town.All events
must demonstrate a need for funding, take place within City limits, and cleaxly benefit the
community. The Committee held a strategic planning session in early 2008,at which time it
identified conventions and youth tournaments as high priority events. Historically, these events
provide a high retuxn on invested dollaxs and create a significant economic impact. This expansion
to the Swiftel Center is vital to attract additional youth sporting events and conventions.
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The niche market for the Swiftel Center will continue to be built upon a solid foundation of events
and activities currently being held at the Center. The expansion will allow us to begin pursuing
previously lost business oppoxtunities as soon as the plan is approved. With SDSU being an
economic and educational anchor to the region, endless possibilities are available for partnerships
that would benefit both of us. While SDSU can be expected to make full utilization of their own
facilities,they will continue to utilize the facilities at an expanded Swiftel Center. Such use is
significant and well documented in the reseaxch. Not only will faculty and staff at SDSU be a
valuable xesouxce as keynote speakers for meetings and conventions, but a "Bring Your Meetings
Home" campaign will encourage them and others in our community to look within the
organizations they belong to bring their own meetings and conventions to Brookings.
(4) Ca�italize on the current investment. If the community demonstrates it can use "moxe of what
we already have",why not add to the current investment instead of duplicating it elsewhere? It only
makes sense to improve and expand on the current investment instead of needlessly duplicating like
facilities elsewhere. The Swiftel Center is in an excellent location with easy access and visibility from
I-29;it has convenient access to residents;has room to expand;is located close to virtually all hotel
rooms;and already contains the "core" functions and amenities available to efficiendy accommodate
an expansion. What's more,improving the existing facility adds more synergy in one location
providing for a moxe economical investment. If additional public assembly venues are needed for
exhibits, meetings and conferences,receptions, concerts, or sporting events;it is only logical that
expansion take place at the Swiftel Center. This also helps make the overall facility more vexsatile
and multi-purpose while maximizing efficiency for necessary support functions such as kitchen,
storage, offices,and equipment.
The expansion will also provide the high tech, state-of-the-art amenities that today's convention and
meeting planners require. The addition of a quality hotel completes the full package of amenities
allowing Brookings to be competitive in the meeting and convention m�ket All of this is possible
only because we are able to capitalize on our e�cisting investment.
Ca�ital financial im�lications. The current bond issue fox indebtedness that provided the Swiftel
Center and the Library is set to be retired in 2013. If proceed, staff proposes to complete the Swiftel
e�ansion project and schedule the debt service for bond issuance of the expansion to begin in
2014. T'he effect on the second penny indebtedness is that it will actually continue the bond
payments with a new issuance so there is no overlapping debt from the two issuances. We would
not be incurring any new Swiftel debt until the old Swiftel debt is completely retired so the aggregate
debt load will not be increased. The future debt service payments may be either highex or lower
compared to the current payment depending upon how much the project costs, how much debt you
wish to incur, the intexest rate,and term of the debt.
O�erating financial im�lications. The operating expenses of the Swiftel Center are financed by two
revenue streams; the income from operations and an opetating subsidy fxom the City. In 2009,the
operating subsidy is �316,000. The Swiftel Center was alwaqs envisioned to need a subsidy like
many other services beneficial to the City of Bxookings such as the pool,ice arena,golf course,and
airport. They provide a public benefit as a result of a taxpayer investment. In the case of the Swiftel
Center, the subsidy helps finance events which supply the economic benefit to the businesses in the
community. The Swiftel Center,Larson Ice Center,and South Dakota State University are the thxee
largest, single generators of outside visits to Brookings that provide a continual stteam of economic
benefit to the private sector businesses. The opexating subsidy is moxe apdy termed an
"investtnent." Even though it does not show a return-on-investment in the bottom line of the
Swiftel Center,it adds to the bottom line of businesses. Clearly,without these three facilities,we
would not have the number of hotels,restaurants, retail, and convenience stores we currendy have
in our business community.
The HVS Study states on page 6-29 the City subsidy will increase without the expansion to �555,000
in 2013 and with the expansion to $494,000. According to the VenuWozks study on page 67 it
shows the Ciry allocation increasing to $333,405 in the first year of the expanded facility and
decreasing to $281,575 in the fifth pear of operation.
In order to make some forward progress on this issue, staff needs direction from the Councii about
your collective position. Is thexe other information you need to help aid in yout decision? The
project can be cancelled in its entirety, delayed, or moved forward. If it is decided to delay the
project,it would be helpful to cite reasons for the delay and steps to be taken to resolve the reason
for the delay so an eventual decision can be made. If it is decided to move forward, the first step
would be to authorize staff to develop Requests for Proposals (RFP) for architectural services. If it
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is decided to move forward,a�chitectural expenses will need to be accounted for in the 2010 budget,
which axe currently beginning to be prepared.
Council Di.rcu.r.cion. Kubal asked if the economic impact could be backed up with hard facts and
figures. Tom Richter said from day one they have conservatively estimated the Swiftel Centex's
economic impact on the community. The formula they use states for every 100,000 Center
attendees, two pexcent stay overnight,which calculates into 2,000 hotel zooms. Richter said they
feel this number if very conservative. Each visitor is estimated to spend$40/day on incidentals.
Overnight visitor stays axe calculated at$105/day/person. With the 100,000 attendance estimate,
98% spend$40 per pexson and 2% spend$105 per person. Besides restaurants and hotels, other
local unpacts include advertising and salaries. Richter said the national daily averages are$285 and
$300 per day per person.
Bardey commented that when he ttavels he spends more than$105 per night and feels the numbers
are very conservative. He noted a significant jump in third"b" sales tax revenues in recent years,
which he attributes to the visitoxs attending Swiftel Center events. He questioned why there's
nothing in the expansion plans for an ancillary building for storage (i.e. horse stalls, dixt). He asked
if additional funds would be needed. Richter responded to the daily spending estimates, stating they
have used those figures for the Center's first eight yeaxs of operation and have recendy adjusted the
one day figure to $60/person and hotel rate impacts have been increased from$65 to $80,which is
still low. In response to the additional storage question,Richter said it is critical to have storage
atta.ched to the facility rathex than be in a separate building. The proposed expansion plans have
addressed the majority of their storage needs. A `hoop barn for dirt storage is included in the capital
improvement plan. Another hoop barn for horse stall has been suggested for later.
Whaley asked what the price would be of the hoop buildings and if the second building could be
done at the same time. Richter said the 50'x 100'hoop barn for dirt is estimated to cost$50,000,
which is only big enough for one dirt pile. The other hoop barn would need to be la,rger and he
hasn't gotten an estimate.
Weldon said one considexation would be to have the ballroom be part of the hotel and not the
convention centex,ma,king the hotel responsible for that part of the project. There a.re options to
explore. However, organizations using the facility may require break-out meeting rooms and
convention rooms and having to work with different entities wouldn't be usex friendly for the
clients. In additional to logi.stical problems, splitting ownexship of the two spaces would mean all
revenues genexated by the ballroom would be retained by the hotel.
Bardey asked if it would be possible and an advantage for the TIF district to sell land for the hotel
facilities. Weldon said according to state law, the land must be privately owned in a TIF district.
That would require subdividi.ng and replatting. He was uncextain if there was TIF taxation on leased
land.
McClemans said he has studies the numbers and isn't sure if the xeturn justifies a$7 million dollax
expense and increased costs. He is interested in private business involvement in the Centex and is
concerned xegarding competition with e�cisting hotels and convention facilities. He doesn't like
spending public funds that are in competition with the private sector. He noted the City will have
significant expenses in the future related to the airport,railroad and storm drainage.
Whaley asked if the City sta.ff followed through with soliciting private interest via a RFP. Weldon
said he's received some interest from hotel chains interested in partnering. If the City Council
wishes to move forward in that direction, an open process would need to be developed and he
hasn't determined how to do that.
Whaley commented that the expansion is a good idea to get the Center growing. However,in the
eyes of the taxpayers,if the City paxtners with a private business it's not"their"money. She feels
the amount of money spent on the project could be a hody contested issue. She favors exploring
partnership opportunities to make the project work.
Baxdey said he suppoYts the expansion as the Swiftel Center is a great asset to the communitq. In his
opinion the Council owes it to itself and the community to seriously look at the expansion project
and go to the architectural phase. Without that step,it just speculation. It's a community
investment and added quality of life for this community. The Center has brought many people and
events to Brookings. The next step is a hotel. This project won't go forwaxd without the hotel. He
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feels the Center's economic impact to Brooki.ngs is greater than we even think. He is in support to
go forward with an RFP for architectural services.
Bezdichek said he believes the expansion could be well used in Brookings,but agrees with concerns
�aised by other council members regarding impact on the Brookings taxpayers. He noted that the
expansion would not help make the Center self-sustaining. The City will still have to do a subsidy
regardless of an expansion or not. Another fact is the Center's employees are not city employees,
but they spend money in Brookings. 'I'he Center never has and never will reduce property taxes. It
benefits the university,local industries,local organizations,and local businesses. The Council needs
to determine if the expansion is valuable enough to pursue. Because it is here,when we have an
event, the$105/person stays here xather than going to a neighboring city. Those people are
spending money here and that's a good thing. The issue is "leakage" - how to get more people
spending money in Brookings. The difficulty is the amount needed- $7 million dollars. He wishes
there was more of a parrnership that it would not cost the taxpayers not as much. Taxpayers will
evaluate this project based on how it impacts their pocketbook. He agrees that the proposed
expansian is nice and rooms are needed for conventions. It's the dollar amount he struggles with
and if taxpayers are willing to pay for it. The expansion would be great to have in Brookings.
Trieb said she favors working with an existing business or dtawing a new businesses to fill this need
and does not support being in competition with others. She wants to figure out a way to have the
facilities but not have the taxpayers pay for it.
Kuba1 noted that the City is going to retire one good sized debt tied to Swiftel Center and then add
another one. It would be great to get the private sector to buy-in and participate. He read the
letters of endorsement that have been provided,but didn't see any indicator to support the project
with pri.vate funds. The city has to accept the fact that the Swiftel Center is going to need subsidies
and he has no problem with subsidies as long as bring in big economic impact dollars. However,
he's a little skeptical that the economic impact picture is as rosy as projected. Another question is
will taxpayers pay more money for the project. He would be moxe supportive if there was more
buy-in from the private sector.
Reed noted the validation study cited an increase in users by 15,000 people. The Venuworks Study
cited a laxger nutnber. There's a risk how many people it would take to achieve the increased
economic impact numbers. The City Council needs to look at the subsidy requited. The subsidy is
a risk. According to the validation study the Center will require a$500,000 subsidy in 2013 without
an expansion. With the e�ansion,the subsidy is e�ected to decrease to $333,000.
Weldon xeiterated the Council's interest in a private/public business model;however,he would need
firm up the parameters of a partnership in order to identify costs. There are a nutnber of diffexent
paxtnership options to review. He said the reason the public is involved in this project is because
the private sector doesn't make money. The Swiftel Center is a qualiry of life issue for the
community in how does it helps the bottom line for the rest of the community. As for risks, the
City has many pxojects that involve xisk but provide important featuxes, services and quality of life
for the citizens: streetscape,innovation campus,ice center,golf course,aquatic center. All required
a huge subsidy and all add to the quality of life. He is willing to take a reasonable amount of risk to
move forcvaxd on these issues. These amenities make Brookings a destination for conferences and
events. He urged the Council to look at other city facilities in the same manner. For some reason
the Swiftel Center was singled out as profit center yeaxs ago when the decision was made to build it
and that was incorrect.
Bartley said the economic benefit of the Center faz exceeds the subsidy. The fixst, second and third
penny revenues goes much farther for benefitting the community.
McClemans commented that the Center doesn't contribute pxoperty taxes and the entire facility is
paid for with city sales tax dollars. It competes against people who have mortgages and pay property
tax and sales tax. There are local businesses that have the potential to provide the services for
smaller events. The Center was created to accommodate the large-scale events that no one else
could do and that's want they should do. He cited the Swiftel Center's recent Mother's Day buffet
as being in ditect competition with anyone providing meals. .
Reed closed saying there is council interest in the expansion,but some are uncomforta.ble with the
City funding the entire$7 million. The City Manager was directed to exploxe different options with
private involvement.
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6:00�.m. Meeting Review. Shari Thornes, Brookings City Clerk, noted changes to the 6:00 p.m.
agenda.
City Clerk Re�ort. Shari Thornes,Brookings City Clerk,provided a briefing on upcoming
invitations and obligations.
6:00 P.M. REGULAR MEETING.
Consent Agenda. Additions to the agenda: Sale of 1981 Pumpe�Tnxck(Consent Item#4-O), A
Message to the Brookings County Public from the Administrative Facility Task Force (Central
Business District) (Item#5B). Deletions from the agenda: Ordinance No. 14-09. A motion was
made by Whaley, seconded by McClemans, to approve the consent agenda,as amended:
A. Action to approve the agenda, as amended.
B. Action on Resolution No. 54-09, a Resolution Designating the Official Newspaper.
Resolution No. 54-09
Resolution Designating Official Newspaper
Pursuant to SDCL 9-12-6, the City Council of the City of Brookings,South Dakota,hereby
designates the Brookings Register as the official newspaper for the Ciry of Brookings for the
ensuing year.
C. Action on Resolution No. 55-09, a Resolution authorizing the city manager to sign an
operating agreement renewal for Skinner's Pub,300 Main Avenue.
Resolution No. 55-09
Skinner's Pub Operattng Agxeement Renewal
Be It Resolved by the City of Brookings, South Dakota, that the City Council hereby approves a
Lease Renewal Agreement for the Operating Liquor Management Agreement between the City
of Bxookings and Greg Thornes, Skinner's Pub, for the purpose of a liquor manager to operate
the on-sale establishment or business for and on behalf of the City of Brookings at 300 Main
Ave., also known as the Skinner's Pub.
Be It Further Resolved that the City Manager be authorized to execute the Agreement on behalf
of the City,which shall be for a period of five (5) yea,rs.
D. Action on Resolution No. 56-09, a Resolution dissolving Resolution 24-09 which
authorized an Interfund Loan to the A.irport and Authorizing an Interfund Loan to
Edgebrook Golf Course for the Purchase of Maintenance Equipment.
Resolution No. 56-09
Dissolving Resolution No. 24-09 which authorized an Interfund Loan to the Airport and
Authorizing an Interfund Loan to Edgebrook Golf Couxse for the Purchase of Maintenance
Equipment
Whereas,Resolution No. 20-09 authorized the purchase of airport snow plow in the amount of
$172,907.85,and
Whereas, Resolution No. 24-09 authorized an Interfund Loan from Liquor Fund to the Airport
for a snowplow in the amount of$172,907.85 plus inter�st, and
Whereas, the FAA funded the Airport snow plow equipment purchase,and
Whereas, Edgebrook Golf Course has a critical need for two fairway mowers and five greens
and tee mowers,and
Whereas,it is in the best intexests of the City of Brookings to finance the purchase of said
maintenance equipment by a loan from the Liquor Fund to the Edgebrook Golf Course Fund,
Now,Therefore,Be It Resolved, that the City Manager is directed to cancel the Interfund Loan
per Resolution No. 24-09 and execute an Interfund Loan from the Liquor Fund to the
Edgebrook Golf Course, rovidin an annual interest rate of 3%, a able as follows: •
YEAR PAYMENT PRINCIPAL INTEREST
2010 �38,212.05 $32,9G2.05 $5,250.00
2011 $38,212.05 $33,950.91 $4,2G1.14
2012 $38,212.05 $34,9G9.44 $3,242.G1
37 �
2013 $38,212.05 $36,018.52 $2,193.53
2014 $38,212.05 $37,099.08 $1,112.97
Totals $191,060.25 $175,000.00 $16,060.25
E. Action to award bid and authorize emergency purchase of a compressor for the
Brookings Municipal Library in the amount of$85,906 from G&R Controls.
SDCL 5-18-3.1 provides for an exemption to the state competitive bidding laws if the purchase
is determined to be an emergency involving the health and welfare of employees and patrons.
The City Manager made the determination an emergency did exist because waiting for the
bidding process would seriously unpair public services making the library not habitable for
employees and patrons and prolonged exposure to high temperatures and humidity would
seriously damage the library materials. Rentals of temporary replacement equipment are not
available on a timely basis. The quote for the replacement unit including removal of the old unit
and installation of the new unit is $85,906. There may be a$3,200 energy savings rebate that
would be applied to this price;this is currently being xesearched. Efforts to find a second quote
were not successful, as staff could not find anothex unit even available. This will be financed
from our general fund contingency.
F. Action to authorize sale through sealed bid of a surplus loader and skid steer from the
Brookings Street Department. On June 2, 2009,the City of Brookings received the following
bids for one (1) 1996 John Deere 544G Loader S#DW544GD555430 and staff recommends
awarding the bid to Mike J.Volk in the amount of$48,544.00. (Mi.ke Volk, $48,544;M&M
Livestock LLC, $45,777;Harold Harter, $43,550;Larry Schmeichel, $43,150;Prussman
Contracting Inc., $32,475;S-Bar Ranch, $30,500;and Tim Brendemuhl, $29,435).
Bids were also received for one (1) 1994 Bobcat Skid Steer 853-H Loader S#512811052 and
staff xecommends awarding the bid to Midway Truck in the amount of$11,286.00. (Midway
Truck, $11,286;Dean Benson,$7,100;and Dean Benson, $6,850).
G. Action on Resolution No. 57-09, awarding bids for airport electrical work for fuel system.
Resolution No. 56-09
Resolution Awarding Bids for Airport Fuel Sqstem Electrical Work
Whereas, the City of Brookings opened bids for the Airport Fuel System Electdcal Work on
Tuesday,June 16,2009 at 1:30 pm at Brookings City Hall;and
Whereas, the City of Brookings has xeceived the following bids for the Airport Fuel System
Electrical Work:Perry Electric,Brookings,SD, fox$12,520.50.
Now T'herefore,Be It Resolved that the low bid of Perry Electric,Brookings,SD for the low bid
of$12,520.50 be accepted.
H. Action o�Resolution No. 58-09, awarding bids for airport concrete work for fuel system.
Resolution No. 58-09
Resolution Awarding Bids for
Airport Fuel System Concrete Work
Whereas,the City of Brookings opened bids for the Airport Fuel System Concrete Work on
Tuesda.y,June 16,2009 at 1:30 pm at Brookings City Hall;and
Whereas,the City of Brookings has received the following bids for the Airport Fuel System
Concrete Work: Rexcon Material.r,Inc., Volga,SD, ,�9,296.00;Mills Construction,Brookings, SD,
$14,990.00; Owens Enterprises, Inc.,Brookings, SD, $17,134.00,Brooks Construcrion,Sioux
Falls, SD, $30,000.00;Carl V. Carlson Company,Tea,SD, $30,290.00;Peterson Concrete,
Mitchell,SD, $32,500.00;Dakota Contracting Corporation, Sioux Falls,SD, $33,980.00,and
Clark Drew Construction, Inc.,Brookings, SD, $36,500.00.
Now Therefore,Be It Resolved that the low bid of Rexcon Materia�r,Inc., Volga,SD for the low bid
of,�9,296.00 be accepted.
I. Action to authorize the Mayor to sign a letter of support for the Basin Elecuic Deer
Creek Station project.
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J. Action to appoint appraisers to evaluate subject parcels of a proposed property transfer.
SDCL 9-27-34.1 authorizes propexty ttansfer between a municipality and a private owner and
prescribes that in lieu of a formal appraisal, three qualified persons who otherwise own property
in the municipality may provide a detennination of value of the contemplated parcels. These
persons must be officially appointed by the City Council foY purposes of pxoviding this
deterinination. Ryan Kxogman, Century 21 Gustafson,Krogman &Associations, Ron
Borcha�dt, Best Choice Real Estate,and Sarah Woodard, Best Choice Real Estate wexe
appointed to perform independent market analyses on the property located at Block 8 Hyland
Addition (Zoned R-3), owned by John Mills, and a 25 acre pascel of unplatted properry just
southwest of Medary Avenue and 20`�' Stteet South (zoned agriculture), currently owned by the
Ciry.
K. Action on Resolution No. 59-09,A Resolution Authorizing Change Order No. 8 for 2008-
03STI Downtown Streetscape Project.
Resolution No. 59-09
A Resolution Authorizing Change Order#8 (CCO#8) For 2008-03STI Downtown Streetscape
Pxoject-Winter Brothers Underground, Inc., Sioux Falls, South Dakota
Be It Resolved by the City Council that the following change order be allowed for 2008-03SSI,
Downtown Streetscape Project, Construction Change Order Number 8: Storm Sewer work to
include 68' of 12"PVC Storm Sewex from a stub-out between buildings 221 and 225 Main
Avenue to DI-16,including 2-12"PVC 45 degree bends, core drilling DI-16, one 12" PVC cap
and 12"PVC Storm Sewer for an increase of$4,370.00. Extend the contract by one calendar
day.
L. Action on Resolution No. 60-09,A Resolution Authorizing Change Order No. 9 for 2008-
03STI Downtown Streetscape Project.
Resolution No. 60-09
A Resolution Authorizing Change Order#9 (CCO#9) For 2008-03ST1 Downtown Streetscape
Project-Winter Brothers Underground, Inc., Sioux Falls,South Dakota.
Be It Resolved by the City Council that the following change order be allowed fox 2008-03SSI,
Downtown Streetscape Project, Construction Change Order Number 9: Storm Sewex work to
include replacement of storm sewer manhole,xeplacement of storm sewer manhole lids,extra
topsoil excavation in bump-out nodes, and additional electrical work to change location of a
walk/don't walk pole for a total increase of$7,815.00 to the contract. Extend the contract by
three calendar days.
M. Action on Resolution No. 61-09,A Resolution Authorizing Change Order No. 2 for 2008-
123 Sieler Addition.
Resolution No. 61-09
A Resolution Authorizing Change Oxdex No. 2(CCO#2) For
2008-123 Seiler Addition Subdivision Utilities & Gxading Project
Schedule B: VJ Ahlers Excavating, Inc.
Be It Resolved by the City Council that the following change order be allowed for 2008-123
Seiler Addition Subdivision Utilities &Grading Project: Construction Change Order Numbex 2,
Increase as-build quantities for additional trench work including removal of unsuitable subgtade
material,installation of Geotextile material and additional gravel for a total incxease of$2,500.00,
N. Action on Resolution No. 62-09,A Resolution Authorizing Change Order No. 1 for 2008-
09STI, Rio Grand,Napa Valley, and Cumberland Court Project.
Resolution No. 62-09
A Resolution Authorizing Change Order No. 1 (CCO#1) For
2008-09STI Rio Gtand, Napa Valley and Cumberland Court Valley View Phase I Project
Rounds Consmzction Co., Inc.
Be It Resolved by the City Council that the following change oxder be allowed for 2008-09STI
Rio Grand,Napa Valley and Cumberland Couxt,Valley View Phase I Project, Construction
Change Oxder Numbex 1;Additional granular subbase material and geogrid for unsuitable
subgrade areas for a total increase of$8,320.00.
� 8 �
O. ADDITION TO AGENDA: Action on Resolution No. 65-09, authorizing the sale of a
1981 Pumper Fire Truck.
Resolution No. 65-09
Resolution Authorizing the 5ale of a Surplus Fire Truck to the City of Bruce
Be It Resolved by the City Council of the City of Brookings, South Dakota as follows:
Whereas, the City has a 1981 Fite Pumper that has been declared surplus;
Whereas,the City of Bruce has offered to purchase the above-described property upon
terms which are satisfactory to the City of Brookings;
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 City of Bruce;and
B. That the Mayox, City Clerk and City Manager are authorized to execute the
documents required to convey tide of the above-described surplus property to the
Ciry of Bruce.
On the motion, all present voted yes; motion carried.
ADDITION TO AGENDA: A Messag� to the Btookings Coun Puhlic from the
Administrative Facilitv(Central Businecs Districtl Task Force
Mayor Tim Reed read the following statement: "A great deal of attention is being paid,and righdy
so,to the future location of County administration facilities and the possibility of shared, or co-
located, facilities with the City of Brookings. The results of this decision making process will have
long lasting impacts upon the physical character of the coxnmunity and access to facilities,both
public and private. To be certain,there axe many paxties interested in the outcomes of that decision
making process.
Recent discussions at County Commission meetings,and media reports,have raised questions about
the rose of the Task Force created to provide input to elected officials regarding possible alternatives
for such facilities. The purpose of this lettex is to inform the public about the cornposition and zole
of the Task Force. Following are quite simply, the facts:
• In December,2008 the Brookings Economic Development Corporation (BEDC) presented
a letter to the County Cornmission, and in February,2009 presented a letter to both the
Counry Commission and the City Council encouraging the creation of a task force
comprised of public,private and civic organization representa.tives to explore city and county
facilities relative to the long ternn futute of the Brookings Central Business District. The
BEDC Boaxd of Directors also offered assistance in arranging,hosting, or facilitating a
discussion. A task force was ultimately esta.blished with two representatives from each of
the following entities: Brookings County Commissioners,Brookings City Council,
Brookings Economic Development Corpoxation,and Downtown Brookings, Inc. BEDC
staff are facilitating and pxoviding support to the task force. �
• The BEDC Board of Directors does not receive direct reports regaxding information
collected by the task force,nor does it have any decision making authoritq in the process.
• Following the initial meetings of the task force, task force members clarified their role as
follows: to explore potential locations for a cou.nty administrative facility, or a joint
county/city facility,including futuxe law enforcement facility needs; to consider the impact
of a county/city adrninistrative facility locations on the Centtal Business District;and to
present findings of the task force to the County Cominissioners and Ciry Council.
• 'The task force has adopted a confidentiality statement to regulate the actions of task force
members during the fact finding process which simply states the following: "All rights to
discussion material, discussion content,information,proposed alternatives or
recommendations are generally considered by the Task Force to be the property of the
Brookings County Commission and the Cit of Brookings. The Task Force must approve the
disclosure of any Task Force material, discussion content,information,proposed alternatives
or recommendations to any individual, organization or entity beyond the Task Force
members. Information will be disclosed to the Brookings County Commission and the
Brookings City Council for publication or distribution."
• At this time,the Task Force is collecting information to present to the Bxookings County
Commissioners and the Brookings City Council. The Task Force: has not been requested
381
to determine the appropriateness of alternatives;has not been requested to make
recommendations, and will not be making location decisions for the County or the City.
• 'The Task Force: has not discussed nay land purchases;has not made any land purchase
recommendations,and is not developing a faciliry plan or deigning administrative buildings.
• The Task Force does have a plan in place to guide the completion of its work in a timely
manner. That plan includes, among other work items: Engage, and evaluate input from,
various community groups regarding site constraints and issues: Historic Preservation
Commission,Traffic Safety—City Engineer, Children's Museum of South Dakota, Other.
• The Task Force has made a formal request for information to the Bxookings Historic
Preservation Commission and does plan to meet with Commission members,if they desire,
to receive this information and to learn about concerns they may have regarding
development in, or around, the Historic District.
• When the Task Foxce has completed its fact finding mission a written xeport will be
provided to the Brookings County Commission and the Brookings City Council fro their
consideration and use."
18t Reading—Ordinance No. 15-09. First reading was held on Ordinance No. 15-09, an
Ordinance Prohibiting the Keeping of Game Birds in the City of Brookings, South Dakota. Public
Hearing.• July 14, 2009
18L Readin —Ordinance No. 16-09. First reading was held on Ordinance No. 16-09, an
Oxdinance Amending Article II of Chapter 22 of the Code of Ordinances of the City of Brookings
and Pertaining to the 2006 International Residential Code with Certain Amendments Thereto. �This
amendment pertauis to egress windows in sleeping rooms regaxdless of sprinkling requirements).
Public Heanng.• July >4, 2009
Resolution No 63-09 A public hearing was held on Resolution No. 63-09,a petition to vacate an
alley abutting the west lot line of Lots 8-11 and the east lot line of Lots 12-15,Block 3,Morehouse
Addition. No public comments wexe made. A motion was made by Bezdichek, seconded by
Bartley, to approve. All present voted yes;motion carried.
Resolution No. 63-09 -Alley Vacation
Whereas,a petition to vacate has been filed with the City Clerk of the City of Brookings,and
Whereas, the petition was filed in proper form and signed by one hundred percent(100%) of the
adjacent property owners.
Now,'Therefore,Be It Resolved,by the City Council of the City of Brookings:
That the portion of the alley abutting the west lot line of Lots 8,9, 10 and 11 and the east lot line of
Lots 12, 13, 14 and 15 in Block 3,Morehouse Addition is hexeby vacated subject to a utility
easement over, on and under the entire vacated portion.
2"a Reading—Otdinance No 13-09. A public hearing was held on Ordinance 13-09, an
Ordinance for a Conditional Use to establish an"Outdoor Sales"use on Lots 1 and 2,Block 3,
Moriarty Second Addition. No public comments were made. A motion was made by Bardey,
seconded by Bezdichek, to approve OYdinance No. 13-09. All present voted yes;motion carried.
Ordinance No. 14-09. REMOVED FROM AGENDA—NO ACTION TAKEN on Ordinance
No. 14-09,an Ordinance rezoning Husen's Addition, excluding the North 272.8 feet of the East 815
feet;and Lot 1,Block 1,Husen's Addition all in the N '/z of the N '/a of the SE '/4 of Section 22-
T110N-RSOW from a Residence R-1A and R-3A District to an Industrial I-1District (owner
submitted a written"Withdrawal of Rezoning Request).
fe Route to Sch ols—Phase One. A public hearing (continued from 5/26)was held on Phase
One (1) of the Safe Routes to School Project including review of Traffic Safety Committee's
recommendations. A motion was made by Bardey, seconded by McClemans,to approve the
following: 1) 12�' Street South from Main Avenue South to 7`�Avenue South: remove parking from
the south side of the street (there is curxendy no paxki.ng on the north side) and install signage and
stenciling for a sharrow lane;2) 7``'Avenue South from 8`''Street South to 12`h Street South: keep
patking as it is and install signage and stenciling for a"sharrow"lane;3) Christine Avenue from 8�'
Street South: keep parking as it is and install signage and stenciling for a "sharrow lane";4) 15`�
Steet South from Main Avenue South to 17`h Avenue South: keep paxking as it is and install signage
382
and stenciling for a "sharrow lane"; 5) 12�' Street South from 17`''Avenue South to 22°d Avenue
South: keep parking as it is and install signage and stenciling for a"sharrow lane"; 6) 17�'Avenue
South from 8'''Street South to 15�' Street South: keep parking as it is and install signage and
stenciling for a"shartow lane";and� 20�' Street South from Main Avenue South to 7`�Avenue
South: keep the striping as it is and install signage and stenciling for a"sharrow lane".
Public Hearinn. Delvin DeBoer, 914 17`b Ave. So., ex�re.r.red concern about middle,rchool children utilitiing a
.rharrow lane on thi.r very bu.ry.rtreet. He noted that tra�'zc patml.r are pre.rent, but there are time.r when.rpeed limit.r
are exceeded. The interrection at 17'�Ave. and 8`�St. South can be dangerou.r. He had concern.r about encouraging
bike tra�"zc along that.rtreet and he'd rather encourage the City acquiring more�idewalk by church to enable bike.r to
pa.rs:
Jerry Vis.rer, 1 S 10 Pine Ridge Bnad, atked holv the city tvould addr�,r.r crn.rsing Main Avenue. Sta�'re.rponded that
avithin the derzgnated route.r there are interrection enhancement.r(rignage, stripin� raised cm.c.rwalk.r, adju.rt timerr).
The interrection at 12`�St. South and Main Avenue Sosrth i.r de.rignated for enhancement.r. Sta�i.r currently rvorking
thrnugh the de.ngn to determine the be.rt way to addr�.r.r need.r of tho.re particstlar inter.rection.r. He noted that he
,rupport.r the Safe Route.r to School program.
Council Di.rcus.non. Wlhaley noted the follnunng correction.r and/or que.rtion.r: 1 S`b Street South is not a full street
and it.rhould be Medary, wa.r 2d°wa.r included in j�hase 1 or 2, and 20`h rva.r voted tn keep a.r it i.r now and not
change to a 2-lane. She further noted that the bike route travel.r dolvn Medary Avenue South and 1 S`�Street South
and the trail goe.r pa,rt almo.rt to Yorkto�vn Drive. She a.rked�vhat it would take to extend the path to Yorktown
Drive o�'of 1 S`�Street South� Ther�'s no other thmugh.rtreet.r. Sta�'re.rponded that a bike trai!extenrion�vould
require separate funding. Thi.r i.r agreat opportunity to e.rtabli.rh pattern.r befor�habits are e.rtabli.rhed and.rta�'is
looking for a direct route to bring.rtsrdent.r tn Camelot and the Middle School. Parking will not be allosved along 1 S'�.
Sharro�v.r on the direct rnute could be done svith educatzon. The City al.ro anticipate.r the tra�c pattern.r will change
when the ne�v.rchool oj�en.r and.come inter.cection.r may u�arrant rign.r.
On the question rai.red about acquiring and uridening sidewalk, .rta�i,r inve.rtigating but ha.r not received a re.rpond if
funds could be u.red if the change of scope wa.r mod�ed to tran.rf'er funds not used for.rtriping to be u.red in.rtead for the
exj�an.rion of.rideu�alk or bike path.
McCleman.r a.rked?vhen the >S`�St�et South and 7t6 Avenue South ar�a wa.r,rcheduled for completion. Sta�'
re.rponded that the a.rphalt ha.rn't been daid and becau.re it'r not an e.rtabl'uhed madyet they hope it urill help to cr�ate
good habit.r on.r�5eed.r and parking. McCleman.r a.rked if pmper y ownerr had turned in petitionr to have the.rt�et
�iaved. Sta�'noted that the czty didn't crtrrentdy have the right-of-�vay for the.rtreet.r, but it i.r in the future plan.r for'a
street exten�ion. He questioned if there�va.r a timeline for re.rponding to the petition.r. The City Attorney commented
that the petitinn.r didrr't carry any legal authorzty;it wa.rjust a�vay to communicate a de.nre to the city. McCleman.r
a.rked how thi.r widl move fonvard. Weldon.raid it u�ould be a Council deci.rion on svhether to put in a public
impmvement and ho�v to finance it.
Kubal.raid one�commendatzon he didn't agr�e with was that it appear.r a 4-way.rtop i.r a foregone conclar�ion for the
>2`�Street South to �b Avenue South interrection. Sta�'f'.raid it may in the future, but that intersection doe.rn't curr�nt
meet rvarrantf He a.rked if the 4-way dengnation cnuld be made for certain time.r of the day. Sta�'taid current nrler
requirr ful!-time signage.
On the motion;all present voted yes;motion cartied.
S�ecial Temtiorary Off-Sale Package Wine License. A public hearing was held on a temporary
off-sale package wine license for the SD Winegrowers Association on July 11-12,2009 in the
parking lot of 302 6`�Street West(former Municipal Liquor Store). A motion was made by Whaley,
seconded by Bartley, to appxove. All present voted yes;motion carried.
S�ecial Tem orary On-Sale Wine Dealer's Retailers License. A public hearing was held on a
special retail on-sale wine dealer's license for the SD Winegrowers Association on July 11-12,2009
in the parking lot of 302 6�'Street West (former Municipal Liquor Store). A motion was made by
Bartley, seconded by Bezdichek, to approve. All present voted yes;motion carried.
Otierational Agreement with BISA. A motion was made by Bartley, seconded by McClemans to
approve an Operational Agreement between the City of Brookings and the Brookings Ice Skating
Association (BISA).
Costnci!Di.rcu.r.rion. Weldon stated this operational agteement puts into writing what has been the
common practice over the years at the Larson Ice Center. There has never been a full
383
comprehensive agreement to lay out a mutual understanding. This document addresses all of the
issues regarding use of the Larson Ice Center in relationships and responsibilities and envisions the
summer ice program as well. Both the Park&Recreation Boaxd and BISA kave reviewed and agree
to this document. Weldon thanked Brian VanLiere,President of BISA, for all of his work.
McClemans raised some concerns about previous documents, and the apparent discrepancies
between them. He wants to know by whom and why there are discrepancies.
Weldon clarified that this agreement before the council does not change the council's past policy of
no animals in the xed xink. That provision temains intact and is mentioned in section 20 of this
agreement.
McClemans stated his concerns are with the use of the facility and is glad an operating agreement is
being put together and working with the summer ice program. However,he wants to resolve some
documents that were changed and discussions in regards to the Laxson Ice Center.
Bartley asked if these documents had by McClemans were approved by the council. McClemans
stated no; they were drafted in 2003. Bartley stressed draft documents do not hold any power a
final/approved document. He asked McClemans if there was anything in those documents that
should be addxessed in this operating agreement.
Weldon stated he doesn't know what happened in 2003,but in the context of building facilities,
there are all kinds of documents that get passed axound that are in vaxious hands about what should �
be and shouldn't be ... those things all change. T'he bottom line is that nothing is official until the
governing board,BISA, and the City Council agree to a final document. He doesn't know what was
altered or who may have changed something,but it is conceivable that documents, or planning tools
and ideas were expressed in documents,and unless it was adopted by this body, they ase not an
agreement. Weldon stated his frustration in working with BISA and past agreements is that they
were not signed, so therefore are not official. The one signed by the President of the Association
and the City Council is considered to be official; that is an ancillary agreement to tlus one and why it
is binding and part of this document. Weldon stated he decided to put together a comprehensive
document and insert some language within that says from this point forward, this is the document
we will be working from.
McClemans feels that putting together a correct and complete document is what should be done,
but all the information needs to be looked at before decisions are made.
Britzman stated there is a procedure for xesolving that concern. The procedure in Roberts'Rules of
Order calls for a majority to voice their concern if there is one and that is the only way to resolve a
long-standing disagreement that might exist. One would take a majority vote of the issues
McClemans has issued as significant enough to either delay action on this agreement at this point in
time or change the terms.
Britzman suggested that in order for this governing body to move forward,it must be recogniaed
that subsequent councils can make policy decisions and act legislatively which is inconsistent with
the prior council. In this case,we acknowledge there was a factual disagreement as to what the
direction of the facility was going to be. It was fairly consistent,but there were some points that
caused disagreement. At this point in time, all agree that it is relevant to listen to the comments
Council Member McClemans has made and shaxe that information,but we reach a point where we
have to rely on the majority vote of the council to either stop any further action or proceed and
addxess the agreement.
Reed clarified there are two options: to table this for further review, or move to amend the
agreement.
ACTION: A motion was made by McClemans, seconded by Whaley, to table this item.
McClemans withdrew his motion.
ACTION: A motion was made by McClemans, seconded by Whaley, to request the BISA operating
agreement be placed on the July 14�'Council meeting agenda. The reason to delay discussion is to
fuxther review documentation provided by Council Membex McClemans. Reed,Trieb,Whaley, and
McClemans voted yes;Bardey,Bezdichek,and Kubal voted no;motion passed to TABLE.
38 �
Develo�ment Agreement for Vallev View Phase II ('Tax Increment District#3�.
A motion was made by Whaley, seconded by Bartley, to approve the Development
Agreement for Valley View Phase II (Tax Increment Plan for Tax Increment District
Number Three). All present voted yes; motion carried.
PHASE II DEVELOPER'S AGREEMENT
THIS AGREEMENT,made on June 23,2009,by and between the city of Brookings, a municipal
corporation of the state of South Dakota and the county of Brookings called the city,and Blaix Hill
Properties, Inc.,a South Dakota corporation,with its principal office located at 600 Blair Hill
Circle,Bxookings, South Dakota, 57006-5459, called the Developer,wimess:
WHEREAS, the City of Brookings created Tax Increment District Number 1'litee, the legal and
map of the axea indicated below;
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and:
WHEREAS, a portion of the Tax Increment Refunding Bond Series 2009 proceeds will be used to
(1) refund the outstanding Tax Incxement bonds of the District and (2) assist in providing for
certain pxoject costs associated with public improvements located adjacent to Lots 15 And 16 Of
Block 2, Lot 1 And Lots 8 Thtough 13 Block 4, Lots 1 Through 6 And 8 T'hrough 13 Of Block 5,
Lots 4 Through 15 Of Block 7 And Road Row's, All In Valley View Addition In Section 3
Township 109 North, Range 50 West Of The 5�' Pm, City Of Brookings, Brookings County, South
Dakota, a copy of the plat shown hereafter;
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and
WHEREAS, the City wishes to place certain terms on the development in exchange for tax
increment funds used for public infrastructure abutting the affordable housing lots.
NOW, THEREFORE, in consideration of the mutual covenants contained in this agreement, the
parties, for themselves,their successors and assigns,hereby agree as follows:
385
1. Ent�xe Agxeement. This agreement (including any attached exhibits and any written
amendments executed by the parties) constitutes the entise agxeement and supersedes all prior
agreements and understandings, oral and written, between the parties to this agreement with respect
to the subject matter of this agreement.
2. Agreement Relating to Installation of Roads, Curbing, Pavements, Street Lights and Fire
Hydrants. The developer shall construct, except as hereafter provided in paragYaph 2, as provided
for in the subdivision, all roads, curbing, pavement and other improvements, including all catch
basins and drainage facilities, monuments, street lights, and other itnpzovements of any nature
whatsoever as set forth on the final plat approved by the city engineer, and accompanying
construction plans prepared by the city engineer, and in accordance with all present state and local
laws, present improvement ordinances and regulations of the city of Brookings, South Dakota and
in all respects complete the subdivision in accordance with all maps, plans and specifications on file
with the planning board and local laws, ordinances and regulations. Where any such construction
has been partially completed prior to this agreement, developer agrees to complete them in
accordance with this paragraph.
3. Tax Increment District Number Three Project Costs. The City sha11 undertake and
construct such public improvements as axe set forth in Tax Increment District Numbex Three
project plan in an amount not to exceed $1,035,000, $535,000 for phase I which are nearly
completed and $500,000 for phase II which will be funded with the proceeds of Tax Increment
Refunding Bond Series 2009 proceeds.
4. Conditions to run with the land. As a condition of provided the tax increment bond
proceeds, the Developex agrees to provide and construct affordable housing not less than 65 family
housing units with a maximum sales price, to the original purchaser of$160,000 be constructed in
the subdivision to be affordable housing units. This agreement shall be filed on the real property as
evidence of said condition.
5. Acceptance of Improvements. The city shall not be responsible fox road or othex
improvements, maintenance ox caxe until the same shall be accepted, nor shall the city exercise any
control over the itnprovements until accepted. Upon the pxoper completion of these improvements
and their approval by the city engineer, and if these improvements then comply with all present state
laws, present city ordinances and planning board rules, regulations and requitements, the city will
then accept the improvements.
6. Public Right-of-Ways. The city represents that it has good title to the roads and public ways
in which the improvements will be installed, and agrees that the roadways and easements as set out
on its maps heretofore filed with the planning board axe thereby dedicated, and that all
improvements and roads as required by the city and agteed to by the developer, including water
mains, hydrants and other appuxtenances shall, upon completion and acceptance by the city, be the
properry of the city.
7. General Requ.irements. It is agreed that the work to be performed hereunder shall be
completed within 18 months from the date of this agreement,unless the time is extended by the city,
which extension shall not be unreasonably withheld.
8. Run with the Land. This agreement shall run with the land, as shall also the covenants
herein contained,and shall be to the benefit of the city and its successor and assigns.
9. Guaranty of Bonds. If required by bond purchase, the Developer agrees to guarantp the Tax
Increment Bonds, Series 2009 of the City. It is understood that if there is not sufficient Tax
Increment Revenue for the debt service,the City will not be responsible for any shortfall.
10. Pay Agent. The City will act as the paying agent for the bonds.
11. Draw Down. The bond shall be drawn upon once the following has been completed:
11.1. Developer shall have demonstrated in writing to the reasonable satisfaction of the City that
said improvements have been ma.de.
11.2. Developex shall have submitted invoices showing services/improvements have been made.
12. Maintenance until Acceptance. The developer shall maintain, clean and snowplow such
xoads until acceptance by the city. In the event of default of these obligations by the developer, the
city without notice to the developer,may do the same at the expense of the developer.
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13. Maximum price of developed paxcel. The developer shall set the price of a completed home
and lot in an amount not to exceed $160,000 in 2009 and such prices shall not exceed the
affordability index as established by South Dakota Housing Development Authority. There shall be
no special assessments levied against any parcel fox the provision of infrastructuxe with the initial
sale.
14. Homes to be constructed. The developer shall construct homes within the prescribed price
range in accordance with maxket conditions but shall be a variation of four different floox plans
ranging from 1000 to 1400 fuushed square feet in size, shall be between two and three bedrooms
with one ox two bathrooms and shall include double attached garages.
15. Termination of Agreement. Should the developex not adhere to the price restrictions of the
homes, the City reserves the right to terminate payments on the TIF Bond, regardless if there is any
outstanding principal of the bond.
16. Owner Occupied. The Developer agrees to put in the purchase agxeement that the first time
home buyer shall not rent the house out within one year of sigiv.ng the puxchase agreement
17. Mechanics Liens. The Developer,Blair Hill Properties, agrees to unmedia.tely satisfy any and
all mechanic's liens or material man's liens that arise as a result of this project. This provision shall
not prevent Blair Hill Properties from subsequently seeking compensation from subcontractor or
others who may be responsible for such liens or for such payment.
18. Discretionary Tax Formula. The Developer agrees to waive any and all rights to the
discretionary tax formula with the Counry of Brookings.
19. Dedication. The developer shall dedicate Lot 16 Block 2 of Valley View Addition to the
City for purposes of park land.
20. Partial Invalidity. If any one or more of the provisions of the agreement, or of any exhibit or
attachment thereto, shall be held invalid, illegal, ot unenforceable in any xespect, by final decree of
any court of lawful jurisdiction, such invalidity, illegality, or unenforceability shall not affect any
other provision hexeof, or of any e�chibit or attachment thereto, but the agreement, and the exhibits
and attachments thereto, shall be construed the same as if such invalid, illegal, or unenforceable
provision had never been contained hexein, or therein, as the case may be.
21. Effective. This Agreement will not be binding upon Developer until signed by the
Developer or Developer's duly authorized agent. This Agreement will be effective as of the date
executed by the Developer or Developer s agent as set out below.
Resolution No. 64-09—Issuance of Bonds for TID 3. A motion was made by Whaley, seconded
by McClemans,to approve Resolution No. 64-09,a Resolution Giving Appxoval To Tax Inctement
District Number 3 Project Phase II, Giving Approval To The Issuance Of Tax Incremental
Revenue Refunding Bonds To Refund Outstanding Tax Increment District Number 3 Bonds,The
Project And Authorizing The Sale Of Said Tax Incremental Revenue Refunding Bonds And The
Terms Thereof. All present voted yes;motion carxied.
Resolution No. 64-09
Resolution Giving Approval To Tax Increment District Number 3 Project Phase Ii, Giving
Approval To The Issuance Of Tax Incremental Revenue Refunding Bonds To Refund Outstanding
Tax Increment District Nuxnbex 3 Bonds,The Project And Authorizing The Sale Of Said Tax
Incremental Revenue Refunding Bonds And The Terms Thexeof.
NOW, THEREFORE, BE IT RESOLVED AND RESOLVED by the City of Brookings as
follows:
SECTION 1. AUTHORITY,FINDINGS,AUTHORIZATION.
1.01 Au ori . The City is authorized to issue its Ta�c Incremental Revenue Refixnding Bonds,
Series 2009 to (1) Refund Tax Increment Bonds, Series 2008 in accordance with 6-8B-30 thtough 6-
8B-52 and (2) finance project costs pursuant to Section 11-9-33 of the South Dakota.Codified Laws.
Pursuant to Chapter 11-9 of the South Dakota Coclified Laws (the "Act"),the City proposes to issue
tax incremental revenue bonds (as herein authorized, the "Tax Incrementa.l Revenue Refunding
Bonds" or the "Bonds") to finance a portion of the Phase II project 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).
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1.02 F�. The City Council hereby finds and determines as follows:
(a) It is necessary to pxovide incentives for the development of certain real property located in
the City for affordable housing;
(b) The City intends to provide financing of public woxks and improvements located in the City
of Brookings in connection with Tax Incxement District Number 3 the plan on file with the
City Finance Officer and open to public inspection (the "Project");
(c) The Tax Incremental Revenue Refunding 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 declaxed its intention to finance with bond proceeds and for which
the City has no other available means or souxce of financing. The cost of the Project will
not exceed$500,000,including capitalized interest;
(d) It is in the best interests of the City to authorize the borrowing of funds to pay a portion of
the costs of the Project by authorizing and issuing the Refunding Bonds, consistent with the
terms approved hereby for an aggregate sum not in excess of the amount of$1,035,000;and
(e) That the Tax Incremental Revenue Refunding Bonds are payable only solely out of the
special fund czeated herein and that it does not constitute a general indebtedness of the City
or a charge aga,inst its general ta�ring power.
1.03 Authorization to issue the Bonds. It is hereby determined to be necessary and in the best
interests of the Ciry and its inhabitants that this 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 Manager 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 and Chapter 6-8B.
SECTION 2. SALE,BOND PURCHASE AGREEMENT AND OFFICIAL STATEMENT.
2.01 Sale. The Bonds authorized by this Resolution shall be issued in an aggxegate principal
amount not exceeding$1,035,000 and shall be privately placed due to the unique nature. The Bonds
will bear interest at a rate or rates pex annum and will mature over a period set forth in the bond
purchase agreement or similar document. T'he City intends to sell the Bonds to South Dakota
Housing Development Authority (the "Purchaser").
2.02 Bond Purchase Agxeement. The execution of a bond purchase agreement or simil�r
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
2009. The principal amount of the Bonds shall not exceed the lesser of$1,035,000 or any statutory
or constitutional debt limitation. 'The terrri of the Bonds shall not exceed 20 years. The weighted
average interest rate on the Bonds shall not exceed 6.00%.
3.02 Form of Bonds. T'he 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 or facsimile signatures of the Mayor
and City Finance Officer of the City and countersigned by the manual or facsimile signature of an
attomey resident in the State of South Dakota and in case any officer whose signatuse shall appear
on any Bond shall cease to be such officer befoxe the delivery of such Bond, such signature shall
nevertheless be valid and sufficient for all purposes, the same as if such officex had remained in
office until delivery
3.04 Redem�tion. Terms of optional ox mandatory redemption shall be set by negotiation with
the purchaser of the Bonds.
(i) A��ointment of Initial Registrax. The City hereby appoints the Finance Officer, as
Bond registrar, transfer agent and paying agent (the "Registrar") fox 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 cextificate of
authentication on such Bond has been duly executed by the Registrar by the manual signature of its
authorized representative. 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
38 �
been so prepazed, 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 Purchaset, the City 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. SECURIT'Y 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
Incxements shall be placed in the Tax Incremental Revenue Bond Fund. T'he Tax Increment is
irrevocably pledged and appropriated to the payment of the Bonds. For purposes of this
Resolution, "Outstanding Bonds" shall mean these Bonds and any parity lien bonds herebefore or
hereafter issued pursuant to this Resolution. The Tax Incremental Revenue Bond Fund shall be
used and applied only in the manner and order hereinafter set forth. The holders of the
Outstanding Bonds shall have a lien against the Ta�c Incremental Revenue Bond Fund for payment
of the principal and interest and may either at law ox in equity protect and enforce the lien.
4.02 Tax Incremental Revenue Bond Fund. The City Finance Officer is hereby 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 financial xecords of the City until all Bonds issued and made
payable therefrom, and interest due thereon, have been duly paid or discharged. 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 created and established as an account of the Tax
Incremental Revenue Bond Fund, a "Construction Account". 'I'here 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 Pxoject 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 pxoperties, insurance premiums, and the costs of publishing,
posting or mailing notices in connection with the Project. All sums derived from 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 intexest Account. There is hereby created and established as an account of the
Tax Incremental Revenue Bond Fund, a "Principal and Interest Account." Immedia.tely
upon delivery of the Bonds, there shall be credited to the Principal and Interest Account the
amount of any accrued interest received from the Purchaser. Periodically, as needed there
shall be withdrawn from the Ta�c 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 credited 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. Aftex making the above required payments, any remaining Tax
Increment shall be used for the payment of the pxincipal of and interest on any additional
Tax Incremental Revenue Refunding 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.
(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 Increment and constituting a lien upon
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the Tax Increment and the Tax Incremental Revenue Fund equal to or on a parity with the
lien of the Bonds authorized herein (such additional 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 Incxement
or Tax Incremental Revenue Bond fund or having a lien thereon which is junior and
subordinate to the lien of the Bonds authorized hexein. The City may incut expenses in
connection with the Tax Incremental District Number 3 which shall be reimbursed through
the tax incxement. Said obligations shall be junior and subordinate to the Bonds whether
evidenced by an accounting notation or instrument of indebtedness.
4.04 Pledge of State of South Dakota. Pursuant to SDCL 11-9-39.1, the State of South Dakota
does pledge to and agxee with the holders of any issued under 11-9 that the state will not alter the
rights vested in the bond holders until such bonds, togethex with the interest thereon, with interest
on any unpaid installments 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 irtevocably covenants and agrees with each and
evezy holder of the Bonds that so long as any of the Bonds remain outsta.nding:
(a) It will not amend or repeal the Tax Increment or the allocation of revenues thereof to the
Tax Incremental Revenue Bond Fund, or in any way that would adversely affect the amount
of Tax Incremental Revenues which would otherwise be collected and deposited to the Tax
Incremental Revenue Bond Fund.
(b) It will administer, enforce, and collect, or cause to be administered, enforced or collected,
the real property taxes and shall take such necessary action to collect delinquent payments in
accordance with law.
(c) It will keep or 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 standaxd pxinciples
of accounting, and any owner of any Bond shall have the right at all reasonable times to
inspect the records and accounts relating to the collection and receipts of such Tax
Incremental.
(d) In the event the real property taxes of the City is replaced and supexseded by the state
collected-locally shared tax ox taxes, or is replaced and superseded in some other manner
form other source or sources, the revenues derived by the City from the repla.cement source
or sources, as xeceived by the City shall be appropriated in the same ma.nner as if the City
had levied and imposed a Yeal property ta.x. 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 thexein 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 are due
on any date by providing to the Paying Agent on or befoxe that date a sum sufficient for the
payment thereof in fizll; or, if any Bond should not be paid when due, it may nevertheless be
dischaxged 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 dischaxge 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 befoxe that date in accordance with theix 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 entirety,
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 la.w to be so deposited,
bearing interest payable at such times and at such rates and maturing on such dates as shall be
required to provide funds (without an xeinvestment) sufficient to pay all principal, interest and
premiums, if any, to become due on all Bonds on and befoxe maturity, or, if a Bond has been duly
called for redemption, on or before the designated redemption date.
4.07 Cerrification of Proceedin�s. The officers of the City are authorized and directed to prepare
and furnish to the puschasers of the Bonds certified copies of all proceedings and recoxds of the
City relating to the authorization and issuance of the Bonds and such other affidavits and certificates
as rnay reasonably be required to show the facts relating to the legality and marketability of the
Bonds as such facts appear from the officer's books and records or are otherwise known to them.
All such certified copies, certificates and affidavits, including any heretofore fuxnished, shall
39 �
constitute representations of the City as to the correcmess of the facts xecited 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 6. INTERPRETATION, AUTHORIZATION OF OFFICERS AND
RESOLUTION CONSTTTUTES CONTRACT.
6.01 � Inter�retation. If any section, paragraph, clause or provision of this Resolution shall for any
reason be held to be invalid ox unenfoxceable, the invalidiry or unenforceability of such section,
pa,ragraph, clause or provision shall not af£ect any of the remaining provisions of this Resolurion.
6.02 Authorization of Officers. The Mayor, officers of the City and the City Finance Officer of
Brookings are authorized and directed to prepaxe and furnish to the purchasers of said Bonds, and
to the attorneys passing on the legality of said Bond issue, copies of all proceedings relating to
Bonds and other cerrificates and affidavits showing the facts affecting the legality thereof as shown
by the books and recoxds of the City undet their custody and control or as otherwise known to them
and such copies, certificates and affidavits, including any heretofore fumished, shall constitute
representations of the City as to the facts therein recited.
G.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 identity of the Ciry'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 thereof.
6.04 Resolution Constitutes Contract. After 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 Ru1es of Construction. If any section,paragxaph, cla.use or provision of this Resolution shall
for any reason be held to be invalid or unenforceable, the invalidity or unenfozceability of such
section, paragraph, clause or provision shall not affect any of the remaining provisions of this
Resolution. The title or caption of each paragraph ate for convenience purposes only and do not
define scope ox intent of paragraph.
Storm Water Finance Plan. A motion was made by Bartley, seconded by Trieb,to approve Storm
Water Finance Plan"Option#5." No public comments were made. All present voted yes;motion
carried.
O�tion 5: Issue debt from the DENR through the SRF pxogram using$475,000 as the annual debt
service (50 percent increase in the fee) for 20 years term at 3 percent interest. This produces the
ability to loan$8 million that can be applied to projects. The loan would be advanced in�2 million
increments over 4 years. Estimated completion time: 8 years.
Option 5 of the proposed finance plan involved issuing dept from the DENR through the SRF
program using$475,000 as the annual debt service (50%increase in the fee) for 20 years term at 3
percent interest. This produces the ability to loan$8 million that can be applied to projects. The
loan would be advanced in$2 million increments over 4 years. Estimated completion time: 8 years.
The research regarding the other cities'unit financial charge for their drainage fee showed a wide
range of fee rates. Theix governi.ng bodies likely set the rate to assure the funds axe available to
cover the woxk necessary under their particular program. You will note that Aberdeen has a low
rate,however, their fee only covexs operating and maintenance and not land or construction. On
the other hand, Harrisbuxg's fee is higher than Brookings pxoposed fee, since they coner all drainage
costs and improvements similax to Brookings.
Swiftel Center Ex�ansion Project. Bartley commented that he didn't feel the Council gave
adequate direction to the City Manager regarding this topic. ACTION: A motion was made by
Bardey, seconded by Whaley, to direct the City Manager to prepare and execute a Request for
Proposal to hire an architect to prepase schematic designs and cost estimates for the Swiftel Center
391
Expansion project and the Manager will bring the Architectural Services Contract to Council for
review and action. All present voted yes; except McClemans voted no; motion caxried.
Adjourn. A motion was made by Bardey, seconded by Whaley, to adjourn. All present voted yes;
motion carried. Meeting adjourned at 7:37 p.m.
CITY OF BROOKINGS
. (��"
Tim Reed,Mayor
ATTEST:
�2�/
�?�
S ari Thornes, City Clerk