January 8th, 2007

Pursuant to due call and notice thereof, a workshop was held by the Crosby City Council on Monday, January 8, 2007 at 4:30 p.m. for the purpose of a presentation by Steve Mattson of Northland Securities on TIF and Conduit Financing. 

Mayor Sova presided and Clerk Cindy Nelson swore in Mayor Sova, Member Erwin “Buzz” Neprud, Member Edward Vukelich, Member Debra Shankle and Member David “Butch” Ferrari as Mayor and Council of the City of Crosby.

John Mehrkens representing Presbyterian Homes gave a brief presentation on the project that Cuyuna Regional Medical is proposing to build in conjunction with Presbyterian Homes.

Jac McTaggart representing Cuyuna Regional Medical Center along with Tom Reek, CEO of the hospital presented the architect drawings of the project and where it will approximately be located on the property that is currently owned by the hospital.  The building will be approximately 23,000 square feet.

Steve Mattson of Northland Securities explained to the Mayor and Council about conduit conduit financing that it is exempt tax debt and that the borrowed money is generally at a lower interest rate.  Healthcare facilities and housing construction use industrial revenue financing and spread it out over 30 – 35 years. 

Tax Increment Financing (TIF) is a financing tool that can be set up between the City and the Hospital. There will be a TIF district set up and when the property is on the tax rolls and property taxes are paid a portion of the taxes are then sent to the City by the County in a separate check. The City then sends back to the hospital a portion of the property taxes paid for a time period and an agreed percentage will be disbursed back to the hospital with the City of Crosby retaining a percentage for administrative fees and the annual reporting fees.  This would be a pay-as-you-go TIF.  This would be the 3^rd TIF District set up for the City of Crosby.

MOTION BY MEMBER VUKELICH AND SECONDED BY MEMBER NEPRUD TO AUTHORIZE NORTHLAND SECURITIES TO MOVE FORWARD WITH SETTING UP A TIF DISTRICT FOR THE CROSBY SENIOR SERVICES WITH REIMBURSEMENT BY PRESBYTERIAN HOMES FOR THE COSTS.  A VOICE VOTE:  ALL AYES.  MOTION CARRIED.

MOTION BY MEMBER VUKELICH AND SECONDED BY MEMBER SHANKLE TO ADJOURN TO 6:00 P.M. FOR THE REGULAR MEETING.  A VOICE VOTE: ALL AYES.  MOTION CARRIED.  TIME WAS 5:40 P.M.

The regular and re-organizational meeting of the Crosby City Council was held on Monday, January 8, 2007 at 6:00 p.m. with Mayor Dale Sova presiding with Member Erwin “Buzz” Neprud, Member Debra Shankle, Member Edward Vukelich and Member David “Butch” Ferrari present.  The Pledge of Allegiance was given.

MOTION BY MEMBER NEPRUD AND SECONDED BY MEMBER VUKELICH TO APPROVE THE MINUTES OF THE PREVIOUS MEETING AS PRESENTED.  A VOICE VOTE:  ALL AYES.  MOTION CARRIED.

MOTION BY MEMBER VUKELICH AND SECONDED BY MEMBER NEPRUD TO APPROVE THE CLAIMS FOR PAYMENT AS PRESENTED.  A VOICE VOTE:  ALL AYES.  MOTION CARRIED.

Public Forum –

Michele Lemieur – Mayor Sova stated that Laura Roberts who is spear heading the park playground project has sent $250.00 to Leather and Associates to get the process started and there is money in the Quick Start Funding account to reimburse Ms. Roberts.

Member Vukelich stated that he was approached by Wendy Gindorff about having a benefit raffle for Jake Neprud who will be under going a kidney transplant this January and the prizes will be less than $1,500 and according to the State, they only need approval from the City to hold the raffle. 

MOTION BY MEMBER VUKELICH AND SECONDED BY MEMBER SHANKLE TO ALLOW A GROUP OF VOLUNTEERS TO HOLD A RAFFLE ON FEBRUARY 20, 2007 FOR JAKE NEPRUD WITH PRIZES NOT EXCEEDING $1,500 AND WAIVING THE 60 DAY WAITING PERIOD.  A VOICE VOTE:  ALL AYES.  MOTION CARRIED WITH MEMBER NEPRUD ABSTAINING.

Maurice Slepica, General Manager of the Hallett Community Center was present asking for approval to enter into a new lease with Creek Ridge Capital for 5 new treadmills for the Community Center with the Hallett Foundation contributing the difference of $600.00 per month towards the new lease payment. 

MOTION BY MEMBER VUKELICH AND SECONDED BY MEMBER FERRARI TO AUTHORIZE THE HALLETT COMMUNITY CENTER TO LEASE 5 NEW TREADMILLS AND A STAIRCLIMBER MACHING AND INCREASING THE LEASE WITH CREEKRIDGE CAPITAL WITH THE HALLETT FOUNDATION CONTRIBUTING THE ADDITIONAL INCREASE COST OF THE LEASE.  A VOICE VOTE:  ALL AYES.  MOTION CARRIED.  MEMBER NEPRUD ABSTAINED.

Public Comments –

City resident Curt Southmayd asking for help with his neighbors on their parking situation and the condition of their property and also submitted a letter to the City regarding his concerns.

Mayor Sova asked that Chief Coughlin review the letter and conduct a site visit to the property and report back at the next council meeting.  The Mayor and Council also viewed pictures of the property that Mr. Southmayd provided.

City resident Larry Hayes stated that when they moved here 15 years ago the city was dumpy and then it got cleaned up and now it is again very dumpy and asked when the city was going to enforce people to clean up their properties.

MOTION BY MEMBER NEPRUD AND SECONDED BY MEMBER FERRARI TO ALLOW THE H.C.C. FOUNDATION TO HOLD BINGO AT THE HALLETT COMMUNITY CENTER ON MARCH 17, JULY 6 AND SEPTEMBER 9, 2007 AND WAIVING THE 60 DAY WAITING PERIOD.  A VOICE VOTE:  ALL AYES.  MOTION CARRIED.

MOTION BY MEMBER SHANKLE AND SECONDED BY MEMBER FERRARI TO ALLOW THE KNIGHT’S OF COLUMBUS TO CONDUCT BINGO AT ST. JOSEPH’S CATHOLIC CHURCH ON MARCH 25, 2007 AND NOVEMBER 11, 2007 AND WAIVING THE 60 DAY WAITING PERIOD.  A VOICE VOTE:  ALL AYES.  MOTION CARRIED.

Fire Chief Chuck Leonhardt reported on the following –

-  The manual siren switch has been installed at the fire hall and the firemen will be blowing the siren for all fires starting immediately.

Police Chief Kimberley Coughlin reported on the following –

-  Presented the annual statistics for the Police Department for 2006

-  Police Advisory Committee replacement – Ironton representatives Gerry Altonen and Dean French and from Crosby Mayor Sova and Councilmember Ed Vukelich.

-  Request approval to name Officer Jesse Smith as Sergeant for the Police Department.  This position is in the union contract but has been vacant for a couple of years.

MOTION BY MEMBER VUKELICH AND SECONDED BY MEMBER NEPRUD TO PROMOTE OFFICER JESSE SMITH TO SERGEANT OF THE POLICE DEPARTMENT WHICH IS A NIGHT POSITION.  A VOICE VOTE:  ALL AYES.  MOTION CARRIED.

Attorney James Gammello was absent and no report was given.

Public Works Superintendent Laverne Booth reported on the following –

Dave Schultz of the Minnesota Department of Health has been in the city inspecting our different buildings, water treatment plant, wells and other property and will be submitting a report directly to the city with his findings. 

Member Neprud, City Superintendent Booth and City Engineer Mike Rude will meet sometime this coming week to work on plans for the proposed park restrooms.

City Engineer Mike Rude reported on the following –

WSN would like to set up a workshop in the near future to discuss and finalize the CIP for the City.

February 3, 2007 has been designated as the CIP workshop at 9:00 a.m. at City Hall.

Clerk Cindy Nelson reported on the following –

The new furnaces for City Hall are tentively set to be installed on Wednesday or Thursday, January 17^th of 18^th.

Mayor/Council/Committee Reports –

Mayor Sova made his annual Mayoral appointments of the City. (See attached list)

MOTION BY MEMBER VUKELICH AND SECONDED BY MEMBER FERRARI TO ADOPT RESOLUTION # 01-2007 NAMING OFFICIAL APPOINTMENTS AND DESIGNATIONS (SEE ATTACHED RESOLUTION).  A VOICE VOTE:  ALL AYES.  MOTION CARRIED.

Member Buzz Neprud reported on the Youth Center project and there are two potential sites and will bring more information at the next meeting.

MOTION BY MEMBER VUKELICH AND SECONDED BY MEMBER FERRARI TO ADJOURN.  A VOICE VOTE:  ALL AYES.  MOTION CARRIED.  Time was 7:00 p.m.

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Dale J. Sova, Mayor                                                      Cindy S. Nelson, Clerk