Posted: 3/12/03

City will assist development projects on Fairview campus in Wyoming

Alice Pickering
Wyoming Area Reporter

On the recommendation of the Economic Development Authority, Wyoming City Council on Monday, March 3 unanimously approved a tax-exempt conduit financing proposal to assist the Ebenezer Society in building an assisted-living residence south of the Fairview hospital campus.

The motion included the same type assistance for University of Minnesota Physicians to construct a radiology clinic in Wyoming.

Financial consultant Kirstin Barsness said the city is ìallocated $10 million of bank qualified debtî annually. The city can use the allocation to issue its own tax-exempt bonds or by way of conduit financing, provide the same tax-exempt status for non-profits.

The city issues the bonds, the non-profit makes the bond payments and the city is not at risk if there is a default, Barsness said.

Council will provide tax-exempt conduit financing for the Ebenezer Society in the amount of $8 million to build a 59-unit elder housing residence.

Dan Eitrhein, representative for Dougherty & Company, the developer for Ebenezer, told council this is the first phase of what may eventually be a three-phase project. Sale of the tax-exempt bonds for the project could save about $3 million on the 42-year bond.

Another $2 million will be available to University of Minnesota Physicians for its building project.

According to Barsness, ìthe bonds issued on behalf of the non-profit are considered bank qualified. This means that commercial banks can bid on the note, opening up the private placement market and attracting a lower, more attractive interest rate for the non-profit.î

Administrator Dennis Coryell told council the development would generate taxes for the city. Negotiating a fee for the conduit financing could cover the additional paperwork, he added.

One of the stipulations attached to the EDA recommendation was that if the city needs to issue bank qualified debt in 2003, above the allowable $10 million, the non-profits are to reimburse the city the difference between the interest rates.

The other stipulation is the city is to be compensated financially for providing the conduit financing prior to or at the closing of the sale.

Related impact

Asked about the effect of this residence on the cityís wastewater treatment capacity, Engineer Lee Elfring said the addition of 59 assisted-living units would not make a big dent in capacity.

Even if a larger impact is anticipated, the financing could include a buy-down on sewer capacity money being set aside for the day capacity needs expansion. A public hearing has been scheduled for 7 p.m., Monday, March 2.

Police practices

Based on a proposal made by Mayor Vern Haag, council unanimously voted to take bids for an outside consultant to conduct a best practices analysis for the police department.

The analysis is to ìinclude a review of police department policies, procedures, community relations, reporting, delegation of authority, the extent of our coverage, the justification of special investigations, and anything else which will increase understanding and communications between the police and council.î

If approved, the estimated cost of about $7000 would equal about 1 percent of the total departmental expenditures for 2002 and 2003.

Police matters

Council member Sandy Standridge is in contact with Sgt. Scott Dexter about plans to provide coverage while officer Scott Sonnen is on active duty. She also presented for council consideration a pay sheet and time log for police department.

The example she obtained from the Newport police chief shows daily activity report, days and hours worked, comp time, sick time, mileage on squads when taken out and checked in.

Council member Ted Phillips questioned her rationale, suggesting an attempt at micro management of the police department. Standridge said this is a way to make sure there is adequate coverage in the city and would be helpful keeping track of comp time and other information which could be helpful. Several departments are using this form of record keeping she said.

Standridge also reported that security mirrors were recently installed in the lobby of the city hall. This provides better security for office employees, who are now able to see at a glance who enters the building.

Snowmobile issues

This is the third year Kevin Teel has voiced complaint about snowmobile riders crossing yards as soon as there is snow. Having been told that positive identification of the rider is necessary to issue a ticket, Teel presented information he obtained from the Attorney Generalís office saying that with the registration number, the owner can be held accountable for any violations and fined.

Teel has repeatedly said he does not want to shut down snowmobile riders in the city, but wants enforcement of the ordinance that prohibits riding on residentsí yards.

City Attorney Tom Miller will review the information Teel brought to the meeting.

LMC meeting

Haag and council member Lynn Koalska attended the League of Minnesota Cities annual Leadership Conference March 1-2 in St. Louis Park.

The conference included presentations on emerging models of how councils can organize themselves to effectively direct the work of their staffs.

Kevin Frazel, director of member services at the LMC spoke about different ways elected officials and staff tend to view the same issues and ways to appreciate and use the differences to provide better service.

Organized more than 85 years ago, LMC is an organization representing 817 cities. It provides training, research, advocacy, insurance, and communications services to elected and appointed city officials throughout the state.

Other business

In other business, council:

ïIn addition to considering the eligibility list for public works employees, directed Coryell to post the maintenance department job description.

ïApproved a feasibility study about possible annexation of the area east of the city where the wastewater treatment plant is located.

ïLearned from council member Martin English, that he and Chris Eng will begin interviewing business owners about services the city can provide.

ïTabled discussion of the wastewater treatment plan proposal until the next meeting.

ïApproved a partial pay estimate for well house 3 in the amount of $11,518.84.

ïOn the recommendation of Elfering, unanimously accepted the change order on well house 3, to relocate a disconnect switch, install a 50 ppm chlorine meter instead of smaller model, and to install the wiring and conduit for a control box overlooked in the plan. Change order amounts to $1660.

ïApproved the acceptance of a DNR outdoor recreation grant for improvements to Goodview Park.

ïApproved the appointment of Kenneth E. Meyers to the park board.

ïLearned from Phillips the park board approved the rough grade plan for Goodview Park.

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