Grand Marais city councilors and Public Utilities Commission members began council’s May 29, 2013 meeting by approving the refunding of two bonds. The action is expected to save taxpayers about $300,000 over the next 17 years.
Bruce Kimmel and Nick Anhunt of Ehlers Inc., the city’s financial advisors, attended the meeting and explained the bidding process. There were three bids received for the $3.5 million General Refunding Bonds, Series 2013A, and the $1.4 million electric system revenue refunding bonds, Series 2013B. The sale of the bonds was authorized by council at its prior meeting.
Although the final bids were lower than Ehlers’ original estimates, which projected that the city would save over $700,000 by the refunding, the advisors said the action was still a profitable one worth pursuing.
“This will save money for both the city and the PUC, but just as importantly it will shorten the terms by years,” said Kimmel, noting that six years will be shaved off the payment period for the larger of the two bond sales, and one year reduced from the smaller bond payments. The bonds will now be paid off by 2030, as opposed to the most recently revised timetable of 2036 – a reduction in six years of payments from Ehlers’ original estimates, which called for payment over the next 23 years.
Kimmel also lauded the city’s financial management. “These were very positive results… brought on by strong reserves that led to a strong credit rating,” Kimmel said. “That means the city and PUC are doing everything you can do right.”
Council then passed a resolution to accept the bids to sell the bonds, with closing expected June 20.
Council next heard from Parks Manager Dave Tersteeg and Gunflint Hills Golf Course Manager Mike Kunshier, who asked for and received permission to purchase a new greens mower for the golf course. The greens mower now in use was purchased in 2003, and Kunshier said the new machine, a Jacobsen Greensking, will be compatible with the attachments the course owns. The cost of the mower is $26,234.
Kunshier also reported that the golf course suffered through a “tough” winter, with a lot of damage on the greens, some of it substantial. However, he said, that hasn’t been deterring the members, who are eager to break out their clubs.
Tersteeg requested that the city approve the hiring of Karl Olson and Ryan Bottger as seasonal lifeguards at the municipal pool. Council approved the request, along with the hiring of Linnea Leonard as a seasonal part-time clerk at the liquor store.
Also approved was a permit allowing use of the city’s municipal parking lot on Broadway by the Cook County hFarm and Craft Market on Saturday mornings through the summer. City Administrator Mike Roth said there lwere no problems or conflicts with adjacent business owners reported last year, and this year’s permit request was unchanged. Council approved the request and use of the lot; 2013 will mark the 16th season for the local farmers’ market. y r On the recommendation of the planning commission, council approved the preliminary plat for a 17-acre, sixlot residential development known as Ravenwood. The site on the lake side of the highway near the east entrance to the city is the same area formerly under consideration for development of a zip line.
Jeff Brett, surveyor, presented the plan and along with it a stormwater management plan as requested by the planning commission. Brett’s revised plan also addressed concerns about the turnaround on the private street. Brett said there will not be a lot of runoff created by the project and described the road construction as “pretty easy.” Brett also said Fire Chief Ben Silence reviewed the street design and was satisfied.
Finally, council considered a request from Phil and
Lorrie Oswald of DePere, Wis., for continuation of a deferred assessment on property they recently purchased on Third Street. The assessment deferral, $15,256, was granted to the previous owner in 2009, and states that the assessment will be levied against the property if and when it is split into more than one building lot or if more than one residential dwelling unit is allowed to be constructed.
The Oswalds have indicated their desire to construct a garage with a coach house over it, and then later a single family home on the lot. In a letter to council, the
Oswalds said they believe the coach house does not constitute a separate living unit (just guest accommodations), and would never be used as a rental unit. They also said they would be willing to put that in writing so as not to violate the spirit of the deferral.
Councilors held a long discussion over the matter with City Attorney Chris Hood, who said the property is now “arguably being developed” and said he’s not sure there’s any basis to continue the deferral. Hood also said the assessment probably should have kicked in when the property changed hands.
But according to the terms of the deferral agreement, which was written by former city attorney Don Davison, the deferred assessment will only be levied when “1) the property is allowed to be subdivided into more than one building lot, or 2) a multiple unit dwelling or more than one residential dwelling are constructed or allowed to be constructed on the property.”
There were a lot of comments and considerations expressed about the request, such as fairness to others who have already paid or are paying their assessments; other properties that are already being used similarly
(garage with apartment) with no assessment; what happens if the property is subdivided in the future; size and shape of the lot, which may restrict any development; and when does the deferral expire?
In the end, council directed Attorney Hood to draft a development agreement with the Oswalds stating that as long as the property is not sold within 20 years, the deferral stays. However, if the property is sold or subdivided, the amount of the special assessment is owed to the city.
Leave a Reply