HomeMy WebLinkAboutCCMinutes_2007_03_27 298
Brookings City Council
March 27, 2007
The Brookings Ciry Council held a meeting on Tuesday,March 27,2007 at 4:00 p.m., at City Hall
with the following members present: Mayor Scott Munsterman, Council Members Tom Bezdichek,
Julie Whaley,Mike Bardey,Michael Reitz,Tim Reed (arrived at 4:50 p.m.) and Ginger Thomson.
Ciry Manager Dennis Falken, City Attorney Steve Britzman, arid City Clerk Shari Thornes were also
present.
Tax Increment Finance Districts.
Ciry Attorney Steve Britzman and Todd Meierhenry,Danforth&Meiexhenry,LLP,provided the
Council with information about Tax Increment Finance (TIF� Districts. Mr. Meierhenry is a bond
counsel from Sioux Falls,extremely knowledgeable about TIF Districts,and was invited to attend
this meeting to answer questions and assist the City of Brookings thxough this process.
Meiexhenry has been a member of the National Association of Bond Attorneys for many years and
has taught TIFs to bond attorneys and has chaired committees to develop nationallaws.
In South Dakota the statutes are found in SDCL 11-9. A TIF district is any boundary as defined.
Governing bodies are limited to 10%assessed valuation. When creating a district a number of
things happen. Draw boundary lines cxeating a district. Land within those lines is the base. The
City, or the designated ta�ung district that receives the taxes on that base,will continue to do so as if
nothing has occurred with that property. Once a TIF District is created everything above that line
goes into the tax increment fund. Taxpayers will not see any difference. They will still get their tax
notice. Once the District goes to the County it splits into two pieces: one to the base for all taxing
entities and one for the fund for improvements. For example,if bare ground were valued at$1,000
and after improved was valued at$10,000, the taxes on the$9,000 would go into the TIF fund.
The maximum length of time a TIF district can e�st is 20 yeaxs. The maximum time is 15 years if
bonds aren't involved. According to South Dakota statutes, cities have 5 years from the day a
district is created to make improvements. If cities pay for all impxovements with city funds and get
reimbursed, the ma�tnum term is 15 years. However, 20 years is allowed if the city issues bonds.
He noted that in those cases bond holders incur all the risk.
Meierhenry outlined the three key stages of a TIF district: planning,cxeation and fmancing.
1. Planning:
-�-
o Im act-Determine potential increme�t. What are the projected improvements? Will
there be enough value to justify all the legal steps?
o Timin�g-Determine tax collection and discretionary foxmula. The biggest mistake cities
make are forgetting that taxes are paid a year in arreaYS. If improvements are made on
January 1, 2007;the County assesses November 1,2007;it doesn't get taxed until
following May 2008. Cities must plan for a 36 month delay.
o Pro'ect- Determine the amount, scope and duration of the project. After determining
these factors there are other issues to consider. In Brookings there is a 20/40/60/80 tax
delay program which,by statute,is available to the owner unless they waive their option.
These delays increase the amount of interest to capital.
o Leg,al-Political -Determine the legal and political viability of the project. Can you live
within statutes and is the project politically viable?
2. Creation Sta�e:
o Notice of hearine
■ 10 prior to hearing
■ Publication
■ Mailing to taxing districts.
o Planning Comtnission hearing
■ The Planning Commission is the fitst official body to act on a TIF district.
■ The Commission makes a recommendation to create a TIF district to the City
Council.
o Governing Bodv Creates District:
■ Effective 20 days after publication of the Council`s action.
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o Base lettex tec�uest
• The City sends a base letter request to State Department of Revenue (DOR) and
the DOR sets assessed valuation base.
o Bli�ht Determination:
■ Not less than 25% of the district must be "blighted".
■ Improvement likely to significandy enhance the value of all other real property in
the district. It is easier to determine value when creating a district for one
facility. Determining value in a larger area, such as downtown,it is more difficult
because you don't know when the work will be completed and valuation will go
up.
■ Factors:
• Impairinggroavth- substandard structures,inadequate street layout, #'aulty
lot layout, deterioration of site ox improvements,diversity of ownership,
condi�ions endangering life or property, or any combination of the above
� factors.
• Open-Predominandy open which has obsolete platting, diversity of
ownership, deterioration of structures ot on site improvements and
substantially impairs sounds growth.
• Crime- Dilapidation, age, or obsolescence;inadequate provisions foY
ventilation, light,air sanitation, or open spaces;high density of
population and overcrowding;the e�stence of conditions which
endanger life or pxoperty by fire and other causes;conducive to ill health,
disease,infant moxtaliry,juvenile delinquency or crime, or any
combination.
3. Financing Plan:
o Pro,ject Costs - Project costs are any expenditure made or estimated to be made, or
monetary obligations incurred or estimated to be incurred,by a municipality which axe
listed in a project plan as costs of public works or improvements within a tax
incremental district,plus any costs incidental thereto, diminished by any income, special
assessments, or other revenues, othex than tax increments,received, or reasonably
expected to be xeceived, by the municipality in connection with the implementation of
the plan.
■ Capital Co.rts-include the actual costs of the construction of public works or
impxovements,buildings, structures and permanent fixtures;the demolition,
alteration,remodeling,repair, or reconstrucrion of e�sting buildings, structuYes
and permanent fixtures; the acquisition of equipment; the clearing and grading of
land; and the amount of interest payable on tax incremental bonds or notes
. issued pursuant to this chapter until such time as positive tax increments to be
received from the district, as estimated by the project plan,are sufficient to pay
the principal of and interest on the tax incxemental bonds or notes when due.
■ Financing Co.rt.r-include all interest paid to holders of evidence of indebtedness
issued to pay the project costs, any premium paid over the principal amount
theteof because of the redemption of such obligations prior to maturity and a
reserve for the payment of principal of and interest on such obligations in an
amount determined by the governing body to be reasonably required by the
marketability of such obligations.
■ Keal ProperlyA.r.rembly-real property assembly costs,including the actual costs of
the acquisition by a municipaliry of real or personal property within a TIF district
less any proceeds to be received by the municipality from the sale,lease, or other
disposition of such propexty pursuant to a project plan.
■ Profe.r.riorral Service.r-include those costs incurred for architectural,planning,
engineering,and legal advice and services.
■ Imputed Co.rt.r-include those costs incurred fox architectural,planning,
engineering,and legal advice and services.
• Organi�ational Co.rts-include those costs of conducting environmental impact and
other studies and the costs of informing the public of the creation of TIF
districts and the implementation of the project plans.
• Da:rcretionary Payment.r-payments made, at the discretion of the governing body,
which are found to be necessary or convenient to the cxeation of TIF districts oY
the implementation of project plans.
o O tions:
• Pay-as-you-go, collect tax increment and pay for projects.
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■ Governmental entity fronts costs and then is reunbursed.
• Issue bonds
� Obligations payable solely from tax increment fund.
• Interest taxable
• Interest tax exempt
■ Financing Tax Exempt Bonds -Payable solely ftom genetally
applicable taxes. No guaranty by private individual or no change
in tax payer rights ox obligations. Proceeds can be used for
governmentally owned improvements ox can be granted to the
developer (no payback).
Meierhenry said in South Dakota TIF Districts were created in 1978 after the Attoxney General was
directed to litigate all statutes related to the issue. The first TIF district was in Spearfish;however,
Huron was second and challenged every provision in the code. Currendy,Rapid City has the most
districts. Sioux Falls is starting to get more involved.
He recommended that Brookings review the Sioux Falls citp's policy on TIF forxnation and consider
adoption of a TIF policy before an actual TIF application is befoxe the Council. Some cities also
charge a fee to process a TIF application.
What are the downsides of a TIF district? A TIF district can be a detriment to a school's taxing
district base,but few school districts challenge a TIF formation because they want to bring young
people with children into their area. There are also few othex economic development incentives to
compete against. He noted that Minnesota has several economic development tools established by
statute in addition to TIF districts.
Munsterman asked what the first step would be. Meierhenry said the first step is to know when
something (project) is coming in. He cautioned not to create a TIF district too early.
Munsterman said the city has earmarked land on the east side of the interstate for tetail
development. The 125 acre innovation campus on the west side is state owned with private land to
the west. He asked if any considexation needs to be made on ownership of property. Meierhenry
said the property must be taxable. If the project doesn't generate taxes, there is no increment.
Munsterman asked if there are any xestrictions on expanding a TIF district. Meierhenry said to make
sure it is big enough when first creating it. Later expansions require changing the base. He also said
the project list should be a "wish list" and include everything possible that should be included in the
plan. Otherwise, the governing body has to come back later to redraw the line and change the base.
Bardey asked if the blighted area could be esta.blished prior to the creation of the TIF district.
Establishing the blighted area doesn't start the TIF time clock.
Falken asked if the blighted area could be larger than the actual TIF. Yes. The only limitation is
that 25%of the TIF district must be blighted. All improvements must be inside the district.
However, sometimes lines ate drawn to include an access road,rail spur, etc. to connect the areas of
improvement.
Falken asked if there are risks of the district being too large because the obligations are ahead of the
pxojects. Meierhenry said yes;too large a district or too many districts could use up the city's
allowable assessed valuation. Another development may come along wanting to do a TIF, but the
city has used up all the taxable value on other projects. It makes no sense to make a district too big
when nothing happens on the fringes. Unless there are incxements from projects expected to help
pay it off faster.
He noted that most districts dissolve in 13 to 15 years.
Munsterman asked if the district lines could include blighted, new and future development areas.
Yes, the only requirement is that the area is contiguous. Plan on structures you know axe coming.
Munsterman asked who takes the financial risks in a TIF district. Meiexhenry responded the bond
holders. There is restriction in state law that says cities can't pledge money for TIF repayment.
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Munsterman asked what the interest rate would be to bond. Meierhenry said the rates for the recent
ethanol plant projects ranged from 4.5 to 6.5% -ptime ox below for commexcial loans. It depends
how much incentives you want to invest.
A1 Heuton asked when the timeclock starts if multiple bonds are issued. Meierhenry said the clock
starts ticking when the TIF district is created. He cautioned that you'd want to make the debt less in
case there isn't full payment so thexe axe extra years to collect.
Heuton noted that the tax increment financing laws in South Dakota axe very lenient. He asked if
the laws have ever been contested. No.
Munsterman asked if there were any other considerations when looking at the district's purpose:
housing,xetail development, and industrial development. Meierhenry said with a housing pxoject a
TIF can't be used to build the houses. Housing projects are difficult because it is hard to calculate
how many and when theyll be built. Vermillion and Tea both did housing proJects around golf
courses and in both cases their project projections were too low.
Reitz asked when a TIF is used to build streets how would assessments wotk. Meierhenry said there
typically would not be any assessments. The City could put the cost into an assessment and have the
tax increment pay the assessment.
Local developer Dean Gulbxanson said since TIFs are predominately used for infrastructure,would
the city do industrial revenue bonds at the same time with that particular pxoperty. Yes,industrial
bonds would have no bearing on that at all.
(Reed arrived at 4:50 p.m.)
Meierhenry noted that the pYOposed Presidential budget would pYOVide for unlimited private water
and sewer bonding but the block grant programs (CDBG) would be phased out,which would be
unfortunate foY rural aYeas.
Falken asked what happens when revenue projects are wrong. Meierhenry said the bond holder gets
upset and hopefully the ciry didn't extend the project out to the maxirnum year. These are often
broken into two portions: taxable and guaranteed. The bond holder may want the percentage of
loan to value to be $1.50 for every$1.00 of debt service,which may xequire more reserve.
Munsterman asked if the County can waive the discretionary formula for a TIF district. Nq only
the person that owns the real estate can waive the option for the formula. The City could make it a
requixement of the TIF application as part of the City's adopted policy.
Reitz asked what the property tax percentages were in Brookings County to the city, county and
school. All taxes are retained locally.
Falken asked if the first step would be to create a policy. Yes and the policy should include a way to
"weigh" ot rate the projected value of a project.
Munsterman asked if assessing projects was straightforward. Meierhenry said the projected value,
project timing (construction period beginning, ending and assessment date),will they miss the .
assessment deadline, amount of remaining debt limit, and other projects looming in the future. To
determuie project value the building permit should be helpful but thexe usually aren't comparable
sales.
He noted that cities raise much more revenue with sales tax than property tax.
Teresa McKnight, CEO and Executive Director of the South Dakota State Univexsity Growth
Paxtnership and Innovation Campus,was present to discuss the proposed TIF District at the
Research Park. She came from Utah State where they were developing a 173 acre research park
bringing in 48 companies that genexated$132 million in revenue.
She said she has seen what a research park can do for an area's economy. A Paxk is also a tool to
xetain university students and bring students back to the area for lucrative jobs.
When McKnight arrived in Brookings she spent three weeks evaluating all the written docutnents
and speaking to as many people as possible to gain "institutional memory" on the project. She
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evaluated the Paxk's master plan and immediately found a problem that the Park had too much
green and open space and didn't maximize the land which conversely brings in the funding.
McKnight noted that open green space is very expensive to a developer and those costs axe passed
on to the companies. She worked with the architect to redesign the park to accommodate 29
buildings rather than the proposed 19. She noted that everything in an innovation campus from
land usage to drainage retention must be innovative.
Anothex key in a research paxk is to design gathering places for activities. Portabiliry through
wireless systems in every building is critical in order to maximize researcher collaboration efforts. It
is crirical that the design creates opportunities to get the researchers tall�ing to each other. This
collaboration in other Parks has resulted in multi-million contracts for companies. This is due in
part to the synergy level created in a research park environment.
The first construction projects will be the multi-tenant incubator building and the seed technology
building (70,000 square feet).
She asked if the City would create a TIF District for the park for the infrastructure. The buildings
would be constructed by private developers who would pay commercial taxes. Several companies
have approached her about locating in the Park, but her biggest obstacle is saying to these large
anchor tenants is that the infrastructure isn't in place and won't be in place for 5 to 10 yeats. We
need the infrastructure now otherwise we will continue to loose these opportunities. Bringing these
companies to Brookings will benefit the entire community with job stimulation,higher salaries,
people moving to town,and additional children in the school system.
Bezdichek asked if the first few buildings would be owned by the state and be tax exempt. No, only
the seed technology building would be tax exempt. The 30,000 sq. ft.incubator building would be
taxable because it will be owned by a private non-pxofit corpoxation.
McKnight noted that these companies want to be part of a Research Park and not standalone
companies. 'I'hey recognize the benefit of the synergic environment. �
McKnight said the entire infrastructure is needed from the beginning to include the roads, curb and
gutter, and utilities. Businesses would pay for installation from the curb to their buildings. Reed
asked if there was a risk if the infrastructure design didn't fit the tenants' needs. McKnight said
everything is very caxefully planned and designed and she has not seen a design that won't work.
She works with a national network of research park designers planning out the space to the smallest
detail. Plots will range in size from 2.3 to 4.5 acres and tenants would have the ability to use
multiple plots.
She also said a research park is a "build, and they will come" experience. She has yet to see
infrastructure installed for a park and companies not come.
She noted that the Patk will have very strict architectural, site,landscape,and information and
technology guidelines. Everything must be done correcdy from the beginning or it will be a mess.
Reitz asked how much the infrastructure will cost. McKnight said$5,000,000.
Bardey asked what other revenue sources the Growth Partnership is exploring. McKnight said they
have looked at every revenue source,but the TIF is the best way to do it. She noted that all other
research parks install their infrastructure using TIF districts.
Bartley commented that a park can develop slowly which would result in a cash flow problem.
McKnight acknowledged that there is risk,but the ripple effect is real. She currendy has three
anchor tenants who have expressed interest and she is working to get signed documents committing
these companies.
Bardey asked what happens with TIF districts where the risk is high, such as with a research park,
does bonding become an issue. Meierhenry said in those cases local financial institutions usually
take the risk because thep understand the vision and the exact project. Usually those bonds are sold
to the general public through an underwriter. Local financial institutions can also give the most
fle�ble tertns because they believe in the pxoject and also see the benefit to themselves.
Bezdichek noted that two years ago SDSU foxfeited theix electrical system and are paying Brookings
Municipal Utilities on an$8 million bond issue. McKnight said she has visited with BMU officials
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and the Research Park is unaffected by this action. She clarified that the Innovation Campus is
located at SDSU and is not the SDSU Research Park.
McKnight said companies locating in a park will generate intetest from othex supporting or
professional service companies. Those companies often want to locate neaY,adjacent to, or in the
park.
Bartley said the size of the TIF district should be planned to include redevelopment. Revenues from
that redevelopment should help fund the TIF. The Council needs to carefully look at the size of the
district and plan accoYdingly.
McKnight commented that teta.il developers axe also very interested in research parks and will come
because of the park and the university. Researchers will need a place to walk to fox coffee ox to eat.
Creative use of retail space with loft apartments above adjacent to the park should also be
considered.
She noted that professional services such as human resource fums,attorneys, and accountants wilI
locate direcdy within the park.
ACTION:
■ Todd Meierhenry will send information on the policies and checklists xelated to TIF districts.
• The City Council wiIl discuss and possibly take action to adopt a policy on TIF districts.
• The City Manager was directed to work with Teresa McKnight to develop a finance package to
cxeate a TIF district for the Innovation Carnpus at SDSU,noting that time was of the essence.
Review of 6:00 p.m. meeting topics Falken responded to questions pertaining to the action items
on the agenda.
Topic introduction fot future a�endas Thornes provided a briefing on future agenda items.
Briefing on upcoming council invitations and obli�ations Thoxnes reviewed the City
Council's upcoming invitations and obligations.
City Council Member introduction of topics for future discussion ACTION: A motion was
made by Reed, seconded by Bartley, to start at 4:Q0 p.m. on April 17`h and request that staff present
information on large scale residential developments. All present voted yes;motion caxried.
G;00 P.M. CITY COUNCIL MEETING
Consent A�enda: Resolution No. 23-07 and Resolution No. 24-07 were removed from the consent
agenda for further discussion. A motion was made by Reitz, seconded by Reed,to approve the consent
agenda which included:
A. Agenda, as amended.
B. Minutes (January 16, March 6, and March 13).
C. Resolution No. 23-07 - removed from consent.
D. Resolution No. 24-07 - removed from consent.
E. Action on appointments to the Visitor Promotions Committee: At Large: Bob Johnson
(1 yr), Phil Carlson (1 yr),Lynn Darnall (1 yr),Tom Jones (3 yr),Amy Einspahr(3 yr);
SDSU: Chris Deugaard (2 yr), Sam Nelson(2 yr), Zeno Wicks III (3 yr); Swiftel Center
Committee: Rod Shaeffer (2 yr);DBI: Jerry Miller(2 yr); and Chamber of Commerce:
Victoria Blatchford (3 yr),
F. Action on Resolution No. 22-07, designating election workers for Apri110`h election.
Resolution No.22-07
Appointment of Election Judges
WHEREAS,a City of Brookings Municipal Election will be held on April 10,2007 for the positions
of two Council membexs and two School Board membexs;and
WHEREAS,as required by SDCL 9-13-16.1,the City Council must appoint Election Superintendents
and Deputies and set theix rate of compensation;and
WHEREAS,the following superintendents and deputies axe hereby appointed at a rate of$8.50 per
hour for superintendents,$8.00 per hour for deputies,and a flat fee oE$15.00 fox the March 22,2007
Election School:
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RESOLUTION BOARD PRECINCT 4-Ascension Lutheran Church
David Peterson&Larry Hult Sue Knutzen,Superintendent
Marilyn Foerster
PRECINCT 1-Tompkin's Alumni Center Sharon Anderegg
Bobbe Bartley,Superintendent Karen VanderWal-altemate
LaRayne Wahlstrom
Harold Widvey PRECINCT 5—Bethel Baptist Church
Richard Wahlstrom-alternate Carleen Dixon,Superintendent
Marlys Berkland
PRECINCT 2-ls�Lutheran Church Sue Kaxolczak
Hazel Hauff,Superintendent Maureen Westbrook—alternate
Neva jean Corlett
Dona Kornbaum PRECINCT 6—United Church of Christ
Signe Anderson-altemate Harry Hecht,Superintendent
Doxothy Williamson
PRECINCT 3-City Hall Robert Kortlever
Verle Barg,Superintendent Evelyn Platt—Alternate
Baib Woolworth
Linda Santema
Russell Lokken-alternate
On the consent agenda; all present voted yes;motion carried.
Resolution No. 23-07-BIDS. A motion was made by Reed, seconded by Thomson, to approve
Resolution No. 23-07, awarding bids for AIP 3-46-0005-19-2006 (3/20 bid lettingJ -Runway 12/30
Rehab Porous Friction Course. Di.rcus.rion: BeZdfchek que.rtioned the total project co.rt�ince the grant i.r
,�'650,000 and thi.rgrant a�vard i.r for,$420,000. Jackie Lanning, City Engineer, .raid the Bo2ve'.r portion con.ri.rt.r of
the con.rtruction co.rtr. The remaininggrant fund.r are al.ro intended for additional de.rign serUice.r, in.cpectionr, and
te.rting. The con.ctruction project came in le.rs than anticipated.ro.rhe hope.r there ivill be enough left for wind cone and
sign compliance i.crue,r. Be�dicbek�va.r concerned about aj�pmving con.rtruction co.ct.r that didn't reflect the total co.rt.r of
the project. He noted that the Council ha.r received co.rt breakdo�vn.r in the packet for.rtreet project.r and.ruggested
.romething.rimilar for airport. He a.rked tvho sva.r to receive the a.rphadt removal and milling.r-the city or contractor.
Lanning.raid normally the city r�ceive.c thegrindfng.r. He a.rked if the city incurr the e.xpen.re and.rubmit.r for
reimburrement. Ye.r, the prnject i.r 100%paid by the czty, but L.anning noted that reimbursement.r are very timely.
He asked ho�v long the airj�ort would be clo.red for thi.r project.• Tavo lvorking day.r. The project i.r.rcbeduled for
completion by September 30, 2007. Be�dichek.raid it ispo.crible that Brook>ing.r wouldn't have E.rsentialAir Se»nce
after September or October. Why not delay this work.rince we may have feu�er plane.r landing? Lanning.raid the
j�roject i.r bid on behalf of the FAA and they deczde u�hen it rhould be.rtarted or.ctopped. According to FAf�
.rpecification.r, the city ha.r until October�.rt to comj�lete this project. Munsterman noted that there as a.rafety ha�ard
and potential liability to the crty if the runu�ay i.r not fixed. Lunning agr�ed noting that tbe pavement condition i.r in
very bad.rhape. There i,r concern that chunks of concrete could break loose and lodge in an airplane engine. On the
motion, all present voted yes;motion carried.
Resolurion No.23-07
Resolution Awarding Bids on AIP Ptoject No.3-46-0005-019-2006
Runway 12j30 Rehabilitation
Brookings Regional Airport
Whereas,the City of Brookings is desiious in the project for Runway 12/30 Rehabilitation,and
Whereas,the City of Brookings is obligated and hereby agrees to be reimbursed by the Federal
Aviation Administration for 95%and SD State Aeronautics Department for 2%,and
Whereas,the City has received the following bids for the Runway 12/30 Rehabilitation,which includes
the work of asphalt milling,bituminous asphalt leveling course,asphalt porous fricrion course,glass
spheie pavement marking,topsoil,seeding and miscellaneous work to complete the pxoject: Bowes
Construction,Inc.,Brookings,SD$420,800.00
Now Therefore,Be It Resolved that the tentative awaxd foi AIP Project#3-46-0005-019-2006,Base
Bid is made to Bowes Construcdon,Inc.,Brookings,South Dakota for�420,800.00 subject to
SDDOT appioval.
Resolution No. 24-07-Urban System Priorit.X List. A motion was made by Thomson, seconded
by Whaley, to appxove Resolution No. 24-07, STI'—Urban System Priority List. Di.rcu.r,cion:Be�dichek
a,cked if the milling.r are retained by the city. Lanning,raid ye.r, the Street Dept. and L.andfzdl retain excess milling.r
for cover material. On the motion, all present voted yes;motion carried.
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Resolution No.24-07
STP-Urban System Ptiority List
WHEREAS,the City of Brookings has designated certain streets to be included in the STI'-Urban System of
Streets as defined by the SDDOT;and
WHEREAS,the SDDOT has designated certain funds,Fedexal and State to be used for construction,
reconstruction and major repair of the STP-Urban System Streets;and
WHEREAS,the Ciry of Brookings has been requested to establish a priority list of projects to be considered
for funding by the SDDOT;
NOW,THEREFORE,the City of$rookings hexeby resolves that the following projects be considexed in the
ordex listed:
Priority Bid Length
No. Project Location Yeax Ty�e of Woxk ��, Cost
1. Bike Trail along I-29 to 34�h
Ave.,over I-29,parallel to 2008 AsphaIt Bike Trail $ 608,950
22"�Ave.to SDSU
2. $ike Path in Brookings 2008 Asphalt Bike Trail $ 100,000
3. 34th Ave fxom US 14 to Grading,Cutb&Gutter,
Prince Drive 2009 &Asphalt Surfacing 0.7 �1,000,000
4. Medary Ave. S. from
6�"St. to 15�h St.S. 2011 Milling&AC Overlay
&Pavement Maxkings 1.6 � 750,000
16f Reading.—Ordinance No. 10-07—Budget Amendment. First xeading was held on Ordinance
No. 10-07,Budget Amendment#2 -An Ordinance Entided"An Ordinance Authorizing a
Supplemental Appropriation to the 2007 Budget for the Purpose of Providing for Additional Funds
for the Operation of the City. Public hearing: April 17th
Public Hearing—House Movin� A motion was made by Bardey, seconded by Whaley, to
remove this item from the table. All pxesent voted yes;motion carxied. Untabled Maxch 13 motion:
A motion was made by Reed, seconded by Thomson, to approve a house moving application from
Chris Bauman to move a 2-story house from 545 Main Avenue South to Lot 2B,Block 8, Skinner's
Second Addition, also known as 902 1st Street. Di.ccus.rion: Dan Han.ron,Planning and Zoning
Admini.rtrator, said thi.rproperty�ould be located in a R2�one which allow.r for.ringle family or two family.
Minimum parking reguirement.r for a.ringle family i.r tsvo parking.rpace.r and for a tzvo family i.r foarr.pace.c. The.re
are not required to be hard.rurfaced. � boardinghou.re permit svould reguire a conditional u.re permit. Be�dichek
eacpre.r.red concern about tenants exiting through the city otvned.rtreet department land and sugge,rted barrier.r be
in.rtalled or increa.red monitoring. On the motion;all present voted yes,motion carried.
Public Hearing—House Moving: A public hearing was held on a house moving application from
Brian Gatzke to move a one-story bungalow sryle house from 529 Main Avenue South to the west
45 of Lot 12,Block 7, Skinner's Second Addition, also known as 913 15`Street.
Publie hearing.• Brian Gat�ke.raid he�ilans to convert thi,c house into a.ringle family u.re in an efforl to clean up that
area. He i.r impo.ring a l0year deed re.rtriction on the property. He ha.r met with all the neighbor.r. Hearing clo.red.
A motion was made by Reed, seconded by Thomson, to approve. All present voted yes;motion
carried.
TABLED—Ordinance No. 09-07. A motion was made by Reed, seconded by Whaley, to table
second reading on Orclinance No. 09-07, an Ordinance Amending Article II of Chapter 22 of the
Code of Ordinances of the Ciry of Brookings and Pertaining to the BuiJding Code with Certain
Amendments Thereto. All present voted yes;motion carried to TABLE.
Brookings Transportation Gap Analysis. A motion was made by Reed, seconded by Thomson,
to approve a funding request of$8,100 for the Brookings Transportation Gap Analysis and
Recommendation Study. Di.rcus.rion. Dave Kai�iplinger, Small Urban � Kural Tran.rit Center(SUATSI), u�a.r
pre,rent to an,nver que.rtion.r. He,caid the study�vould e.xplore all tran.cit op�iortunitie.r and ivould.cpeczfieally addre.r,c
the local taxi provider. Are there additional u.re.r for the data they collect? Ye.r, the data and:vork can be u.red for
other purpo.re.r including application.r from other funding.rource.r They avill review and evaluate tran.rportation need.r
and seruice.r and ident�any gaps. He noted that the analy.ri.r is community-driven, .ro they zvill actively.reek out
.rtakeholderr for input. Aeed noted that the,rtate svill.provide�'7,000 for the pr��ject. Reit�a.rked if the County wa.r
contributing to the project. All present voted yes;rnotion carried.
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Resolution No. 25-07—Termination of A�reement. A motion was made by Bartley, seconded
by Bezdichek,to approve Resolution No. 25-07,Resolution Authorizing the Execution of
Termination of Exclusive Agreement to Negotiate. Di.rcu.rsion: MayorMun.rterman.raid the City ha.r had
recent di.rcu.r.rion.r ivith Prairieland Par�nerrhi� rzpr�rentative.r about more involvement from the city in the development
of that area, avhich isn't currently alloived under the agreement. Terminating thi.r agreement would allo�v the city more
fle.xibility to zvork svith the BFDC to develop.rtrategy and implementation of a 5 and l0year retail plan. The city is
not terminating their zvorking relation.rhi�i zvith Prairieland, but rather are opening up the umbrella to allow more
input and fZe.xibility for future developer.r.
Resolurion No.25-07
Resoludon Authorizing the Execution
of Termination of Exclusive Agreement To Negotiate
BE IT RESOLVED by the City Council of the Ciry of Brookings,South Dakota as follows:
WHEREAS,the City of Brookings and Prairieland Partnership,LLP entered into an Exclusive
Agreement to Negotiate,which pertains to certain real pxoperty consisting of approximately Sixty-Six
(66)acres of land located at the northeast comex of Intexstate 29 and U.S.Highway 14 in the City and
County of Brookings,State of South Dakota,and
WHEREAS,the City of Btookings and Prairieland Partnership,LLP now intend to terminate the
above-described Agreement.
NOW THEREFORE,IT IS FURTHER RESOLVED by the City Council of the City of Brookings,
South Dakota,as follows:
A. "That the City of Brookings heieby approves the proposed Termination of
Exclusive Agreement to Negotiate between the City of Brookings and
Prairieland Partnership,LL.P;and
B. That the Mayor and Ciry Clerk are authorized to execute the Termination of
Exclusive Agxeement to Negotiate in accoidance with this Resolution.
TERMINATION OF EXCLUSIVE AGREEMENT TO NEGOTIATE
This T'ERMINATION OF EXCLUSIVE AGREEMENT TO NEGOTIATE is entered into by and
between the City of Brookings,South Dakota,a South Dakota Municipal Corporation,(`Brookings")
and Prairieland Partnership,LLP,a Minnesota Corporation,("Prairieland").
RECITALS
A. Brookings and Prairieland are parties to a certain Exclusive Agreement to Negotiate dated
April 18, , 2006, ("the Agreement") concerning approximately Sixty-Six (66) acres of land located at
the northeast cornex of Interstate 29 and U.S.Highway 14 in the City and Cownty of Brookings,State
of South Dakota.
B. The Agreement provides for an effective period of March 1, 2006 through December 15,
2007.
C. The parties have determined that the above-described Agreement is no longei required and
the parties now desire to provide for the termination of the Agreement at this juncture and to retum
each of the pazties to the�respective positions with no further obligations under the Agreement.
NOW THEREFORE, in consideration of the foregoing and the mutual covenants and agreements
contained herein,the City of Brookings,South Dakota and Prairieland Parmership,LLP hereby agree
as follows:
A. Termination of Agreement. The parties agree that in lieu of the original expiration date of
the Agreement,the Agxeement described above shall termuiate as of the last date of execution of the
parties hereto (the "Termination Date"). Brookings and Prairieland hereby confirm and declare that
the above-mentioned Agreement has been terminated.
B. Effect of Termination of Agteement. Upon the mutual execution of this Agreement by the
parties hereto,the Exclusive Agreement to Negotiate shall texminate and the parties shall be released
from all obligations with respect to the subject matter thereof.
C. 'I'he parties each represent and warrant to the other that it has full power and authority to
enter into this Termination Agreement and to undertake the actions contemplated by this
Termination A�eement.
D. This Termination Agreement shall be binding upon and inure to the benefit of the parties
hereto and their transferees,successors and assigns.
E. 'This Terminadon Agreement and the provisions hereof may not be amended, modi6ed or
changed except by a document in writing signed by the parties hereto.
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F. This Termination Agxeement shall become effective(the"Effective Date")upon the date it
is executed by the last party.
IN WITNESS WHEREOF,this Termination Agreement has been entexed into by the parties hereto.
Adjourn., A motion was made by Reed, seconded by Whaley, to adjourn. All present voted yes;
motion carried. Meeting adjourned at 6:36 p.m.
City of Brookings
�o°;9•�a•'.�.� cott D. Munsterman,Mayor
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S ri Thornes,City Clerk