Ida Grove, Iowa
September 5, 2006

The City Council of the City of Ida Grove met in regular session at the Council Chambers at 6:30 p.m.
Mayor Dennis R. Ernst presiding.Councilmembers present: William Carnine, James Weary, Rick Heeren, Tom Peterson.Councilmembers absent: Paul Bargar, Tom Peterson.Guests in attendance: Roger Spotts, Richard Spotts, Randy Spotts, Gerrod Sholty, Beth Wolterman, Sam Sears, Milt Zobel.The following item was added to the agenda for discussion only: Second Access to Zobel’s Addition.

Moved to approve the agenda as amended.

Approved unanimously.

Milt Zobel appeared before the Council and reported Zobel’s Seventh is developing quickly. There have been two homes built and four more lots have been sold. There are only seven lots left in the sub-division. He expressed concern about needing an emergency exit out of Zobel’s Addition. He told the Council he would donate sixty-foot right-of-way for a road from the end of Park Lane to the county line. The proposed road would need two metal culverts and could be a gravel road. He plans to sell estate size lots or acreages in the area left to be developed. They would need water mains but would use a septic system.

Mr. Zobel said the City would have to do the surveying, staking and anything else that needed to be done to complete the project.
Mayor Ernst informed Mr. Zobel that this was not an agenda item so the Council couldn’t take official action at this meeting. He did ask the Council members in attendance if they were in favor of the project or not. All three agreed by general consent they were in favor. The City Clerk stated the City has a special meeting scheduled for Tuesday, September 12, 2006 and this could be added to the agenda. The City Clerk was directed to do so.

Roger, Richard and Randy Spotts appeared before the Council and requested the City Council to establish a TIF area for their proposed housing sub-division named High View Addition. There are 29 lots in the sub-division. They requested the city install water, sewer and two paved streets in the addition.

The City Clerk made a conference call to Tom Simmering, a representative of Simmering & Cory, on the speakerphone to discuss the City and Developer’s alternatives in setting up a residential TIF area.

He asked what type of housing the sub-division was going to have and if it was going to developed in phases or all at once.

The Spotts Brothers stated it was going to be any and all types of housing and they want to develop the area all at once.

He asked if the City had received any cost estimates for the water and sewer.

The City Clerk reported that they had not received any estimates.

Mr. Simmering informed the Council that the North TIF Area is set up for twenty years and is set up as a commercial and industrial area and not a housing area. So the city would not be able to amend this area to include the housing development.

Mr. Simmering provided an example for a residential TIF project. The example used $175,000.00 assessed value house then deducted the residential rollback, Homestead credit and the Consolidated Levy minute the debt service and the School PPL. This showed $2,264.00 taxes paid to increment. And then the City needs to set aside the Low and Moderate Income percent of 38.3% leaving a balance of $1,397.00 in taxes for housing public improvements.

The first option is for the City to come up with the funds for the water, sewer, streets and any other necessary utility costs. The City then needs to wait for the area to develop to collect the increment. Prior to collecting the increment the City would have to levy in debt service to pay the annual bond and coupon payment. It the City uses this option and there is no development the City and the taxpayers are out the dollars.

The second option is for the developer to pay the cost of the water, sewer, streets and any other necessary utility costs. The city would have an agreement with the developer to rebate all taxes generated through development in the sub-division that would defray their development costs. This method encourages the developer to sell the lots and get them developed.

Discussion was held on if the new TIF Area would hurt the school levy. Mr. Simmering informed the Council that state aid makes up for most of what the City is diverting to the tax increment area.

The area could also be developed with a half and half split between the City and the developer.

The City Clerk informed the Council and Mr. Simmering that she had visited with a representative from Mid-American Energy and they have different alternatives for paying for the cost of installation of the electric, gas and street lighting costs which needs to be included in the development costs.

Discussion was held on what the income requirements are for low and moderate-income housing.

Councilman Heeren inquired if the developer could set aside certain lots for the low and moderate-income housing.

Mr. Simmering said they could set aside a certain area if they so desire.

The City Clerk informed the Council and Mr. Simmering the City currently has funds set aside from the development in Zobel’s Sixth Addition that could be used to help buy down the price of the lots or the house construction.

After discussion the Council directed the City Clerk and Mr. Simmering to work together to get the necessary information to develop a cash flow for the new housing development and see what it will actually generate. This information will help the Council to determine how to finance the improvements.

Sam Sears, American Legion Commander, presented a final rule from the U.S. Fish and Wildlife Services in Washington, D.C. that will give state wildlife agencies, landowners and airports more flexibility in controlling resident Canada Geese populations. The geese are causing many problems and the issue has become real hot issue.

Mr. Sears requested permission to have the same individuals as last year shoot the Canada geese again this year.

They have contacted Mike Mann, our DNR Representative, and he has approved the shooting of the geese as long as the rules are followed.

Moved to authorize the Legion to work with area hunters on shooting the Canada geese to decrease the population that remain in Ida Grove all year round and that all DNR rules be followed.

Approved unanimously.

Moved to the approve the consent agenda as presented.

Approved unanimously.

The City Clerk informed the Council she had heard from all of the property owners on the south side of Second Street from Taylor to Quimby Street and all of them are interested except the property owner on the west end.

Discussion was held on meeting safety concerns, if the sidewalk meets the specifications in the ordinance, the current condition and if the entire project can be completed and we can assess the property owner if they don’t participate.

The Council directed the City Attorney to check on the questions and report at the next meeting.

The City Clerk presented an estimate from Hemer Plumbing & Heating to replace the west rooftop air conditioner in Community Hall. The estimate was $9,744.80 plus crane expense and disposal of the old unit. This is the unit that is need of repair.

Moved to have Hemer Plumbing and Heating repair the existing west rooftop air conditioner for the Community Hall.

Approved unanimously.

The City Clerk and Gerrod Sholty, Street Superintendent, presented additional information on the proposed salt storage building for the City. The City Clerk reported the floor could be put in after the building is installed.

After discussion the Council requested more information on the proposed building. The wanted to know if the City can use the building this year without a floor, new cost for the building and to verify the building construction and size of lumber.

Council Member James Weary introduced the resolution hereinafter next set out and moved its adoption, seconded by Council Member William Carnine; and after due consideration thereof by the City Council, the Mayor put the question upon the adoption of the said resolution and the roll being called, the following named Council Members voted:

Ayes: William Carnine, James Weary, Rick Heeren
Nays: None.

Whereupon, the Mayor declared the resolution duly adopted as hereinafter set out:
RESOLUTION NUMBER 2006-13 is a resolution to fix a date for a public hearing on a loan agreement in the principal amount of $1,010,000 and the date for the sale of $1,010,000 General Obligation Corporate Purpose Bonds to be issued in evidence of the City’s obligation thereunder.Resolution Number 2006-13 is on file at the City Clerk’s office.

Moved to name Banker’s Trust as the Bond Registrar for the City of Ida Grove.

Approved unanimously.

Moved to appoint Doyle Brown to fill the vacancy on the Library Board. His term will expire on June 30, 2011.
Approved unanimously.

The City Clerk presented a check from Northwestern Mutual in the amount of $1,658.49 from John M. Crawford who recently passed away. This money is to be donated to the Ida Grove REC Center.

Moved to accept the donation from John M. Crawford’s life insurance and a letter of thanks and gratitude be sent to the family for the generous donation.

Approved unanimously

Moved to adjourn subject to the call of the Mayor.

Approved unanimously.

/s/Dennis R. Ernst, Mayor

ATTEST

/s/Diane F. Alborn, City Clerk