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Announcements, Events, Recently Updated

1.  Call to Order.  The workshop session of the Council of the City of Rogers was called to order by Acting Mayor Bell on Tuesday, June 28, 2011 at 5:50 p.m. at the Rogers Community Room, 21201 Memorial Drive, Rogers, MN, 55374.
Council present:  Rob Bell, Jay Bunting, Jason Grimm, Rick Ihli, and Maureen Stanley.
Council excused:  Jason Grimm.

Staff present: Gary Buysse, Liquor Operations Manager; Jeff Carson, City Attorney; Stacy Doboszenski, Assistant City Administrator/Clerk; Brad Feist, Fire Chief; Rose Lorsung, City Planner; Mike Miller, Police Captain; John Seifert, Public Works Supt., Steve Stahmer, City Administrator; Lisa Wieland, Finance Director; and Bret Weiss, City Engineer.  Also present Steve Bubal and Mark Ruff.

2.  Medline Business Subsidy Discussion
Administrator Stahmer introduced Bob Kievert with Medline, Steve Bubal with Kennedy and Graven, and Mark Ruff with Ehlers and Associates.
Stahmer provided background information on the proposed business subsidy request by Medline.  Stahmer stated there are three phases planned for the Liberty site that would probably not develop in the next three years without some type of business subsidy.  By providing a subsidy to Medline, it does not set a precedent for phases two and three of the project – this was discussed with Liberty Property Trust.  Tonight, staff is looking for Council to discuss the concept of the business subsidy.  Stahmer provided a short presentation on the site and building design.

Bob Kievert provided a handout to Council regarding their project. Kievert stated Medline is America’s largest privately held manufacturer and distributor of health care supplies and services.  Mr. Kievert discussed Medline’s history and manufacturing business.

Council asked the average wage of the 23 jobs being generated and the vehicle trips per day.  Mr. Kievert does not know at this time.

Mayor Grimm arrived at 6:06 p.m.

Stahmer stated Katie Murphy with Medline stated the trips are early morning; 3 a.m.  Medline’s concern was how early the roads are plowed.

Ihli asked where the customer base is located; the major client is metro.

Bell asked for clarification on the money moving around; the funding source and where the funds would be reimbursed to.

Lisa Wieland stated $3 to $4 million needs to be spent down in TIF 1 by 2019, or it gets returned to Hennepin County.  Up until the expiration, we can take the money and use toward eligible projects.  The money that will come back via property taxes can be allocated back to transportation projects (fund 402) if the Council chooses not to have the funds put toward the general fund.

Stahmer pointed out the primary use of the cash in TIF 1 has been transportation improvements.

Stanley stated its being referred to as TIF and questioned the money.  Wieland stated the money is coming out of the TIF fund however the payback is back to non-TIF funds.  Wieland explained we would be taking our own cash flow and using it as a business subsidy.  The estimated $47,000 annual return is the City’s portion of the tax money; the county and school district is not negatively affected.

Bubal stated he wanted to point out the City is not creating a new TIF district; the project qualifies as an eligible expenditure, but with the flexibility with the old district, it provides the opportunity for the City to use funds from an existing TIF district.

Grimm asked Medline if we don’t provide the subsidy, they don’t come?  Bob Kievert stated that is a strong possibility.

Bunting stated he thinks Medline has a fantastic story and provides a great product.  Thinks this project will pass through.  Bunting stated he will not support it from a personal view that government entities shouldn’t subsidize business unless they subsidize every business.

Council thanked Mr. Kievert for the presentation.

3.  Initial 2012 Budget Discussion
Stahmer provided Council with a list of parameters and variables that will play into the 2012 budget process.  Stahmer reviewed the following points with Council:
1. Hassan annexation unknowns
2. Hassan annexation impacts
3. Goals for previous budget process; combination of flat levy/flat rate
4. Elements of the financial management plan subject to change
5. State imposed levy limits
6. Excess rate TIF
7. contract negotiations

A preliminary 2012 budget calendar was also provided.

Wieland discussed the various factors that will impact the 2012 budget.  Also discussed were levy limits and legislation created to protect Rogers from losing the tax capacity value of the annexed properties and the expiring TIF properties.

Wieland discussed the inter-fund loan from RSAC and the options available to Council for repayment.

Council and staff discussed the various scenarios that are presently facing a January 1 or July 1, 2012 annexation.

Bell questioned what council would need to do to withdraw the current offer.  Attorney Carson stated the current resolution would need to be rescinded.

Bunting asked Wieland to come up with a list of cost savings items and other options available to the Council.

Staff and Council discussed proceeding with the 2012 budget assuming the worst.

There was continued discussion regarding the setting of preliminary and final levies by the Council and Township and the timing in which the levies are set.

4.  Adjourn.
Bunting moved, Ihli seconded a motion to adjourn at 6:48 p.m.  Motion carried 5-0.

Respectfully submitted,
Stacy Doboszenski
Assistant City Administrator/Clerk

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