Special Meetings April 24 and May 29 for City of Ely

Council Chambers<BR><BR>Ely, Minnesota<BR><BR>Tuesday, April 24, 2007<BR><BR>5:30 P.M. Recessed Special Meeting<BR><BR>Ely City Council<BR><BR>Recessed Special Meeting of the Ely City Council was called to order at 5:30 P.M. by Mayor Charles J. Novak.<BR><BR>PRESENT: Council members Debeltz, Lindroos, Nikkola, Omerza, Sheddy, Zupec, Mayor Novak (7) ABSENT: None (0)<BR><BR>Mayor Novak read the following special meeting notice:<BR><BR>Notice is hereby given that there will be a Recessed Special Meeting of the Ely City Council to take place on Tuesday, April 24, 2007, 5:30 P.M. Council Chambers of the Ely City Hall, for the following purpose:<BR><BR>1 . Resolution Awarding Business Subsidy to JMW Development, LLC.;<BR><BR>2. Resolution Authorizing Agreements with JMW Development, LLC.;<BR><BR>3. Revised Subsidy Agreement;<BR><BR>4. Revised Development Agreement;<BR><BR>5. Revised Ordinance Authorizing Conveyance of Real Property to JMW Development, LLC.<BR><BR>BY ORDER OF THE ELY CITY COUNCIL<BR><BR>Council member Nikkola offered the following resolution: 2007 - 14<BR><BR>Resolution of the City of Ely, Minnesota, Awarding a Business Subsidy to JMW Development, LLC<BR><BR>WHEREAS: The City of Ely is a Municipal Corporation governed under the Charter of the City of Ely with powers vested in its City Council; and<BR><BR>WHEREAS: The City of Ely is authorized to exercise its municipal powers for the promotion of economic development; and<BR><BR>NOW, THEREFORE BE IT RESOLVED: By the City Council of the City of Ely, that:<BR><BR>That a business subsidy is hereby awarded to JMW Development, LLC, in the approximate amount of $99,600.00, subject to fully executed Development Agreement and fully executed Subsidy Agreement. The amount of said business subsidy is derived from the fair market value of the property, less the improvements which will be dedicated back, or to the benefit of the City.<BR><BR>THIS RESOLUTION IS HEREBY ADOPTED, by the City Council of the City of Ely and the undersigned Mayor and Clerk hereby certify the adoption of said Resolution.<BR><BR>Council member Zupec questioned whether tonight's resolution is the exact copy provided Council members last week, with Attorney Bentz stating that yes, it was the same copy.<BR><BR>Motion for the adoption of the foregoing resolution was made by Council member<BR><BR>Nikkola, seconded by Council member Lindroos, and declared carried on the following<BR><BR>vote:<BR><BR>YES: Council members Debeltz, Lindroos, Nikkola, Omerza, Sheddy, Mayor Novak (6)<BR><BR>NO: Council member Zupec (1)<BR><BR>ABSENT: None (0)<BR><BR>Adopted this 24th day of April 2007.<BR><BR>Council member Debeltz offered the following resolution: 2007 - 15<BR><BR>Resolution of the City of Ely, Minnesota, Authorizing Agreements With JMW Development, LLC<BR><BR>WHEREAS: The City of Ely is a Municipal Corporation governed under the Charter of the City of Ely with powers vested in its City Council; and<BR><BR>WHEREAS: The City of Ely is authorized to exercise its municipal powers for the promotion of economic development; and<BR><BR>NOW, THEREFORE BE IT RESOLVED: By the City Council of the City of Ely, that:<BR><BR>The Mayor and Clerk-Treasurer/Administrator are hereby authorized to execute the proposed Development Agreement, in its present form, by and between the City of Ely and JMW Development, LLC, subject to and contingent upon the ability to convey clear title, and contingent upon the execution of a mutually agreeable subsidy agreement.<BR><BR>The Mayor and Clerk-Treasurer/Administrator are further authorized to execute the proposed Subsidy Agreement in its present form, and any other documents necessary to effectuate the intent of this resolution.<BR><BR>Council member Zupec questioned whether this document presented to Council members at tonight's meeting was the same document as provided Council members last week, as he did not have time to read today's dated documents as they were made available and delivered to Council members towards the end of the afternoon. City Attorney noted that document was the same.<BR><BR>Motion for the adoption of the foregoing resolution was made by Council member<BR><BR>Debeltz, seconded by Council member Lindroos, and declared carried on the following<BR><BR>vote:<BR><BR>YES: Council members Debeltz, Lindroos, Nikkola, Omerza, Sheddy, Mayor Novak (6)<BR><BR>NO: Council member Zupec (1)<BR><BR>ABSENT: None (0)<BR><BR>Adopted this 24th day of April 2007.<BR><BR>The Council then discussed the Business Subsidy Agreement between the City of Ely and JMC Development, LLC, with Mayor Novak reviewing with Council several changes that the City Attorney's Office will be making to the final draft copy, listed under 4. A. 1. Goals for the Business Subsidy, reflecting 1 job in connection with the Project, of which 1 will be full time job and 0 will be part time jobs; b. the hourly wage of the new jobs will be at least Federal minimum wage; Development Agreement, page 11, item #23 - B. shall be added beyond any cure period, page 12, item #26 - A. shall be added, except to its lender; deleting and the Business Subsidy Agreement from the second sentence; page 14, item #29 - first line to reflect the Developer shall provide to the City an irrevocable letter of credit, removing a non-expiring revocable letter of credit phrase, page 15, item #29, added to last sentence, with City instructing Developer's lender and Developer to terminate the Letter of Credit. Moved by Lindroos supported by Nikkola, that the City of Ely approve said Agreement with above noted changes, and that the Mayor and Clerk-Treasurer/Admin. be authorized to execute final draft of this document as provided by the City Attorney, on behalf of the City of Ely. Carried unanimously.<BR><BR>Moved by Debeltz supported by Nikkola, that the City dispense with the readings in their entirety of all ordinances and resolutions on tonight's agenda. Carried unanimously.<BR><BR>Council member Nikkola offered the following ordinance: Proposed Ordinance No. 198, Second Series, An Ordinance Of The City of Ely, Minnesota, Adding To The Ely City Code, Chapter 20, Section 20.2.39, Authorizing Conveyance of Real Property to JMW Development, LLC.<BR><BR>The Council of the City of Ely Does Hereby Ordain:<BR><BR>SECTION 1. The Council of the City of Ely, having considered the matter, has determined that the real property hereinafter described does not currently serve any public purpose, the conveyance of this real property is in compliance with the comprehensive municipal plan, the Planning Department has determined that the proposed development is consistent with the comprehensive municipal plan; and, is therefore available for transfer and potential development.<BR><BR>SECTION 2. Pursuant to Section 12.05 of the Charter of the City of Ely, Minnesota, the Council of the City of Ely is hereby authorized, to transfer, contingent upon the ability to convey clear title, pursuant to the proposed Development Agreement and other agreements, and the Mayor and Clerk/Treasurer are hereby authorized to execute a quit claim deed with prohibition on developing a "strip mall", and further authorized to execute all other documents and perform all acts necessary for the transfer, to JMW Development, LLC, that certain real estate legally described as follows:<BR><BR>That part of the unplatted portion of the Northeast Quarter of the Northeast Quarter of Section 34, Township 63 North, Range 12 West of the Fourth Principal Meridian, St. Louis County, Minnesota, described as follows:<BR><BR>Assuming the East Line of said Northeast Quarter of the Northeast Quarter to bear South 00 degrees 39' 23" East and from the Northeast corner of the Northeast Quarter of the Northeast Quarter, run South 00 degrees 39'23" East along said East Line, a distance of 1,025.85 feet; thence South 89 degrees 33'37" West, a distance of 75.00 feet to a point on the West Right-ofWay of Minnesota State Highway Number 1, being the POINT OF BEGINNING.<BR><BR>Thence continue South 89 degrees 33'037" West, a distance of 123.21 feet to a point on the South Line of Block 2 of the plat of Zaverl's Fifth Addition and a nontangential curve concave to the Southwest;<BR><BR>Thence Northwesterly along said nontangential curve, central angle of 42 degrees 41'17", chord bearing of North 48 degrees 08'42" West, Chord distance of 779.56 feet, radius of 1,070.92 feet, a distance of 797.89 feet to a point on the West Line of the officially recorded plat of Zaverl's Fifth Addition extended northerly to the South Right-of-Way of Sheridan Street;<BR><BR>Thence North 00 degrees 26'23" West along said West Line extended a distance of 70.83<BR><BR>feet to the South Right-of-Way of Sheridan Street;<BR><BR>Thence North 89 degrees 33' 19" East along said South Right-Of-Way, a distance of 429.98 feet;<BR><BR>Thence South 16 degrees 12'17" East, a distance of 97.51 feet;<BR><BR>Thence South 42 degrees 41'12" East, a distance of 275.07 feet;<BR><BR>Thence South 64 degrees 31' 34" East, a distance of 63.83 feet to said West Right-of-Way of Minnesota State Highway Number 1;<BR><BR>Thence South 00 degrees 39'23" East along said West Right-of-Way, a distance of<BR><BR>270.11 feet to the POINT OF BEGINNING.<BR><BR>Said parcel contains 3.93 acres.<BR><BR>This authorization is SUBJECT to the terms and execution of the Development Agreement, and FURTHER SUBJECT to the terms and execution of a Subsidy Agreement by and between the City of Ely and JMW Development, LLC, and FURTHER SUBJECT to the ability to convey clear title, and prohibiting the development of any strip mall.<BR><BR>SECTION 3. Effective Date: Pursuant to Section 3.08 of the Charter of the City of Ely, Minnesota, the adoption of this Ordinance is effective immediately after final adoption and publication.<BR><BR>Motion for the adoption of the foregoing ordinance was made by Council member Nikkola, seconded by Council member Lindroos, and declared on the following vote: YES: Council members Debeltz, Lindroos, Nikkola, Omerza, Sheddy, Mayor Novak (6) NO: Council member Zupec (1) <BR><BR>ABSENT: None (0) <BR><BR>Proposed Ordinance #198, Second Series, adopted and given a first reading and publication, this 24th day of April 2007.<BR><BR>Moved by Debeltz supported by Lindroos, that tonight's recessed special meeting adjourn. Carried unanimously. Adjournment at 5:45 P.M.<BR><BR>Patricia M. Wellvang<BR><BR>Deputy Clerk<BR><BR>City of Ely<BR><BR>Ely Echo 6/9/2007<BR><BR>May 29, 2007<BR><BR>Special Meeting of the<BR><BR>Ely City Council<BR><BR>5:30 P.M., Council Chambers<BR><BR>Subject: Recommendation of Employee Relations Committee on Hiring for Custodial position<BR><BR>Present: Mayor Novak, Council Members Debeltz, Lindroos, Nikkola, Omerza, Sheddy, and Zupec<BR><BR>Motion was made by Councilman Nikkola, seconded by Councilman Lindroos, to accept the recommendation of the Employee Relations Committee to hire Mr. Ralph Stevens for the Custodial position.<BR><BR>A discussion regarding the process with applications ensued, with several questions regarding why full Council had not been provided full copies of the applicants that were interviewed. This would be a change from past practice, but there was a request to see the applications by Councilman Zupec. Councilman Sheddy did have his packet from the interviews and provided this to Councilman Zupec. Councilman Zupec, stated that it is the responsibility of the City Administrator to provide copies to the full Council, both at this and the next time a position is up for hiring.<BR><BR>Also questioned was the choice of which Council members were involved in the interviews since the Mayor was not able to attend (Mayor being on the Employee Relations Committee). The assignment of Councilman Sheddy to the interviews was due to his being the first one seen by Mayor Novak once he was aware of a schedule conflict. Council Members Omerza and Zupec both stated concerns that all Council members should be considered in the process of "subbing" in meetings or interviews. There was a request by both Council members to look into establishing a practice for selecting a replacement member at meetings.<BR><BR>Vote was taken on the motion to hire Mr. Stevens<BR><BR>YES; Mayor Novak, Councilmen Lindroos, Nikkola, and Sheddy (4) <BR><BR>NO: Council Members Debeltz, Omerza, and Zupec (3)<BR><BR>Motion carried to hire Mr. Ralph Stevens for the open Custodial position.<BR><BR>Motion by Nikkola, supported by Debeltz, to adjourn the meeting. Carried unanimously, Meeting was adjourned at 5:46 P.M.<BR><BR>