09-17-1984 CC MIN - Laserfiche WebLink

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City Council Minutes September 17, 1984 Page Eight 1 Councilmember Gunkel indicated that in 1981 the City Council approved an industrial revenue bond resolution for the Barthel Planned Unit Development in the amount of $~,OOO,OOO. Councilmember Gunkel further indicated that the amount of the indus- trial revenue bond request has changed from the original $9,000,000 to 3,200,000, the amount required to build the shopping center. Councilmember Gunkel indicated that the public hearing is required because of the change in the dollar amount in the industrial revenue bond. Councilmember Gunkel indicated that the City Council supports the project and that the issuance of industrial revenue bonds would help the developer by providing financing at a lower interest rate. Councilmember Gunkel further indicated that the repayment of the bonds is solely the responsibility of the developer, and not the City of Elk River. General discussion was carried on regarding the issuance of industrial bonds in the amount of $3,200,000 for the construction of the shopping center. Further discussion was carried on regarding the establishment of a tax increment district in the Planned Unit development. Councilmember Gunkel indicated that the develop- ers agreement will contain the financial security requested by the City of Elk River. Mr. Jim Nielson, Attorney for Barthel, indicated that he had met with the City Administrator, Mr. Barthel, and the City's Attorney Dave Sellergren regarding establishing a tax increment district to provide financing to build a watertowner and the financial security required in the developers agreement. Councilmember Gunkel indicated that the tax increment district for the water tower and the industrial revenue bonds are addressed in the latest version of the developers agreement. COUNCILMEMBER ENGSTROM MOVED TO APPROVE RESOLUTION 84-23 A RESOLUTION AUTHORIZING THE ISSUANCE OF INDUSTRIAL REVENUE BONDS IN THE AMOUNT OF $3,200,000 FOR CONSTRUCTION OF THE SHOPPING CENTER IN THE BARTHEL PLANNED UNIT DEVELOPMENT. COUNCILMEMBER GUNKEL SECONDED THE MOTION. THE MOTION PASSED 4-0. 12. Zoning Ordinance Map Interpretation for Reuben Norling Mr. Rick Breezee indicated that Mr. & Mrs. Reuben Norling owning property described as Lots 4, 5, 6, and 7 in the 6th Plat of Camp Cozy, requested a building permit to remodel their home. Mr. Breezee further indicated that he denied their request for a building permit as their property fell in the floodway as interpreted by maps provided by the federal insurance commission. Mr. Breezee indicated that the City's ordinance does not allow for construction of building in a flQodway. Mr. Breezee indicated that Mr. Dale Holmuth of the DNR indicated that he felt the maps were incorrect, and that because of the distance of the Norling property from the edge of the river, they could be considered flood fringe rather than floodway. Mr. Breezee indicated that the requirements for a floodway designation is 120 feet back from the river and that the Norling property is 165 feet back from the river although their elevation is such that it is below the 100 year flood elevation required for flood fringe. Mr. Breezee further indicated that even if the Council would determine that the Norling property is in the flood fringe designation, they would have to build to flood proof code as established in the building code. Mr. Breezee further indicated that because of the problems last winter with the Elk River, the Planning Commission felt that the property should remain floodway. Mrs. Norling indicated that their property was not flooded during the problems with the Elk River last winter. Discussion was carried on regarding the flooding problems, the distance of the Norling property from the edge of the river, and the elevations of the Norling property.