HomeMy WebLinkAbout1997.06.16 CITY COUNCIL MINUTESDATE: (061697)
Special City Council Meeting
6/16/97
12:00 Noon
State of Idaho)
County of Madison( se
City of Rexburg)
SPECIAL MEETING TO CONSIDER ADOPTION OF A RESOLUTION COMMITTING
FINANCIAL SUPPORT OF INFRASTRUCTURE IMPROVEMENTS FOR THE ECONOMIC
DEVELOPMENT PROJECT REFERRED TO AS WILCOX ECONOMIC DEVELOPMENT PROJECT.
AGENDA: DISCUSSION OF FINANCIAL COMMITMENTS BY BOTH CITY OF REXBURG AND
FLOYD WILCOX AND SONS, INC. AND OTHER RELATED MATTERS.
Those present: Mayor:
Council Members:
City Clerk:
Finance Officer:
Engineer:
Attorney:
Nile Boyle
Marsha Bjornn
Bruce Sutherland
Kay Beck
Glen Pond
Nyle Fullmer
Rose Bagley
Richard Horner
Joe Laird
Stephen Zollinger
Also Present: Ted Hendricks representing E.C.I.P.D.A and John Millar
representing Forsgren Associates.
RE: RESOLUTION 97.05 -APPLICATION FOR ECONOMICAL DEVELOPMENT GRANT FOR
INFRATRUCTURE,PASSED
TOPIC: (21,70,RES,97.05,ECONOMIC DEVELOPMENT PROJECT,
UTILITY DEVELOPMENT,WILCOX*LYNN,WILCOX FRESH PACK,SOUTH INTERCHANGE,
INFRASTRUCTURE,WATER SYSTEM,SEWER SYSTEM,PUMP STATIONS)
Joe gave a handout to all present of Rexburg South Interchange Utility
Development Estimated Costs and a copy of the site plan. Ted explained
there are a couple of items listed that Lynn Wilcox will pay for out of
his $409,000 expense. One is the Railroad Spur and one is his
pre-treatment. They have included those and they are isolated.
Everything else they will put in under the City's project.
John Millar reviewed the costs to the City and the developers expenses.
The water system costs are what has been talked about before, bringing
the water line from 7th South to the corner by the Middle School; down
through this project back and tieing into the existing line at Dome
Rental and Spuds. The sewer system costs have basically remained
unchanged; it still has the main pump system on the east side of the
highway that will serve this project, projects on the east and up to
the interchange area. Upgrade the pump station by the South Stake
Center with bigger pumps and bigger piping. Site access costs have not
changed. He explained the costs both city and Wilcox. (copy on file)
He tried to figure cost on percentage. He discussed the site access.
Water system costs, he still needs the full capacity whether the city
is there or not, but it would give the city access into the system for
future development both south, east and west of it, so they have
portioned it at 50% of the cost for 50% of the benefit to the city.
The city share will be $240,500.
Bruce asked if we would need to bore under the highway. John stated
that he had talked to the Highway Department, they stated there was a
question on how far they had control. We know they have control to the
end of the control assess. John had changed the wording on it but left
the dollars in, if we don't have to do we won't.
Ted said he had talked to Joe and where we have identified the cost of
the project and equated it out who owns what, if we have cost shortages
or overruns, we would go back to those same formula and have either Mr
Wilcox bring those cost in or the city of get credit for those. We
would be locked into our match if we get the grant. We need to execute
the documents today that will commit to these numbers. They have met
with Lynn Wilcox several times and he has committed to the $409,500 and
has signed an agreement. He will give it to us as we need it. The
authorizing resolution will commit the city to $240,500. If we need
more money on Lynn's side of the ledger then Lynn will come up with
it.
Bruce asked where we will come up with our match. Richard stated that
we would add it to the note previously approved for a 10 year lease for
the water system on the north side of the city. Kay felt we should get
it done but he had reservations of raising the rates to pay for it.
Nyle stated he had the same reservations as Kay did about having to
raise the rates because of it. Richard said the first payment will be
$100,000 and the other payments will be $220,000. We won't need to
raise the rates until 1999.
The mayor introduced Resolution 97.5 "A Resolution to Submit an
Application for an ICDBG Economic Development Grant to Assist in the
Construction of Public Infrastructure, Including Installation of Water
and Sewer Lines and the Construction of an Access Road and a Rail
Spur."
Whereas, the City of Rexburg desires to commit $240,500 in support of
the Wilcox Fresh -Pack Potato Processing Plant to be constructed near
the South Rexburg Exit of US Hwy 20; such $240,500 will be used to
provide city street access, rail access, and additional water and
wastewater capacity and otherwise accommodate said potato processing
plant.
Whereas, the City Council desires to provide additional capacity to the
water and wastewater systems, install sewer and water extensions to the
aforesaid development, construct a city street through this development
area, and assist with construction of a railroad spur; and
Whereas, the City Council desires to submit an Economic Development
Grant Application to the Idaho Department of Commerce for a grant to
assist in the construction of this Rexburg Infrastructure Improvement
(Wilcox) Project; (Resolution on File)
Kay Beck declared a Conflict of Interest, being that he works part-time
for E.C.I.P.D.A. A motion was made by Nyle Fullmer and seconded by
Bruce Sutherland to pass Resolution 97.5. Kay Beck Abstained all other
council members present voting aye.
Grant Assistance Agreement and Certification of Compliance with Grant
Conditions. This commits the two parties. It is an agreement between
Lynn Wilcox and his Company, Floyd Wilcox and Sons and the City of
Rexburg. Lynn is committing to the jobs, also committing the $409,500
in match. He is also committing that because of his jobs he is getting
some of the benefit of the Block Grant so if the city is asked to pay
back any of the grant because we don't create enough jobs he is taking
that responsibility upon himself as a company. This agreement protects
the city and it is good for Mr Wilcox because the city is committing
the $240,500. A motion was made by Bruce Sutherland and seconded by
Nyle Fullmer to approve the Grant Assistance Agreement. Kay Beck
declared a conflict of interest. All others in attendance voting Aye.
Ted explained the other items are related to the application which
require the mayor to sign them. These are all the Federal
requirements. We have the job documentation and Lynn signs it and the
city signs it.
A motion was made by Nyle Fullmer and seconded by Glen Pond to contract
for Professional Services with E.C.I.P.D.A. Ted Hendricks and Forsgren
Associates, John Millar. Kay Beck declared a conflict of interest.
All others voting Aye.
Meeting adjourned. A �1 /'�3n
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MAYOR, N L L. BOTLE - J
CITY CLERK,,,RQSE�NGLEY