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2020-10-13 Council Work Session PacketCITY OF MENDOTA HEIGHTS CITY COUNCIL WORK SESSION AGENDA Tuesday, October 13, 2020 2:00 pm Mendota Heights City Hall 1) Call to Order 2) Discussion Items a. Potential TIF Assistance--2393 Pilot Knob Road b. Sibley Park c. Charitable Gambling d. Excess Employee Accrued Leave 3) Adjourn (4:15 PM) City Council - Workshop DATE:October 13, 2020 TO:Mayor and City Council FROM:Tim Benetti, Community Development Director Mark McNeill, City Administrator SUBJECT:Discussion of New Tax Increment Financing (TIF) District on the Lloyd’s BBQ Parcel 2393 Pilot Knob Road (Endeavor Development) Introduction The City Council is asked to give preliminary review and unofficial consideration of a request by a development company seeking the creation of a new tax increment financing (TIF) district in the city. The property address is 2393 Pilot Knob Road. Background The subject property is generally located north of the Lloyd’s BBQ/Hormel Foods facility at 1455 Mendota Heights Road; south of Southview Design at 2383 Pilot Knob Road;and west of Dakota Business Plaza at 2401 Pilot Knob Road. The property is legally described as Lot 1, Block 1, Pabst Addition. The lot is 45 acres in size,zoned and guided Industrial,completelyvacantand mostly woodedwith a number of volunteer and scrub trees. Mr. Josh Budish, Principal with Endeavor Development of Minneapolis(the “Developer”), approached city staff a few months ago requesting assistance in planning a new industrial development on the subject site. Endeavor is seeking to build a new 220’ x 340’ (75,000 sf. +/-) office/warehouse facility on the property. New building would be centrally located on the parcel, with parking on the north and west sides of the site and truck dock/loading areas along the east side of the building. Access to this site will need to come off Pilot Knob Road to the east and into the north side of the parcel. At this time, there is a 40-ft. wide right-of-way section platted under the Pabst Addition, labeled “Perron Road” along the north line of the parcel. There also appears to be a section of identifiable Perron Road ROW just inside the south edge of Southview’s property – as per the Minn. Dept. of Transportation ROW Plat No. 19-94. There also appears to be a section of Perron Road ROW shown on the Dakota Business Plaza parcel maps as well. In May 2014, the city approved a driveway license agreement with [then new] Southview Design to use the unused section of Perron Road for access into their new office headquarters and outdoor storage yard. In October 2015, the city approved a separate request from the new owners of Dakota Plaza to vacate a small, triangular shaped segment of Perron Road located on the north edge of their property, due to an existing parking lot encroachment issue. While investigating this site for development, the Developer sought access either through the Lloyd’s main parcel, or through the old Perron Road right-of-way between Southview and Dakota Plaza. Lloyds/Hormel have declined to allow any access through their property; and now Mr. Budish is seeking approval to develop a new access road to serve their industrial development site. The concept plan submitted by Endeavor includes a proposal to install a 30-ft. wide, curbed/guttered roadway section within the Perron Road ROW. This road improvement also includes extending sanitary sewer and water mains, along with any other utilities such as gas, electric, communication cables, etc. The new roadway would provide two access points into the new industrial use, and access to the Southview Design and Dakota Plaza sites. Due to the extensive costs to bring in this roadway and utilities to the site, the Developer is requesting the city consider some financial assistance by means of creating a new TIF district over this property. This district would be tentatively identifies as Tax Increment Financial District No. 3. Mr. Budish has estimated to build the new road and extend utilities is approximately $750,000 of added development costs. Tax Increment Financing District Information The City may consider official application requests from developers to establish a new TIF district within the community. This request would be to modify the Development Program for Municipal Development District No. 1, and establish new Tax Increment Financing District No. 3. Municipal Development District No. 1 is essentially the corporate boundaries of the city. The new [specific] district would comprise just the subject parcel. According to preliminary information gathered from email communication between Ehlers and Associates and Mr. Budish, TIF District would be an economic development TIF district, with an estimated term of 9 years. Tax increments collected from the TIF District will enable the developer to help pay for and facilitate the installation of the new public roadway and utilities in order to provide a safe, viable access into the subject property and provide municipal services to the development site. The Developer may request other improvements, provided they qualify or meet certain criteria allowed under TIF financing laws. The City has not scheduled any public hearing on this matter; nor given any notice to Dakota County Board of Commissioners, as required by Minnesota Tax Increment Financing Act ("Act"), Section 469.175, Subd. 2a. Notices will be provided should Mr. Budish elect to proceed with the TIF application. Proposed Action Mr. Budish (the Developer) is requesting this workshop meeting in order to introduce himself to the Council; answer any questions about the proposed development; and gage any comments the Council may convey towards this new industrial project. More importantly, Mr. Budish needs to determine if the council would support his efforts applying for and requesting TIF assistance on this project. Depending on the outcome of this preliminary meeting with the council, Mr. Budish will decide afterwards if he wants to pursue the TIF application. Should Mr. Budish submit an application, the City will consult with and begin working with the city’s financial advisors at Ehlers and Associates. Subject to an application, city staff will likely request and scheduleanother workshop meeting with the Council toreviewthe basics of TIF districts; how the financing of TIF works; the reasons and benefits for providing TIF to the developer; and what goes into the project analysis of creating a new TIF. This review will also provide a projected or accurate estimate amount of TIF to be generated to support this development plan. EUEUEU EUEUEU EU EUEU$1 $1 $1 $1 $1 $1$1 $1 $1 $1 $1 $1 $1 $1 $1 6666666666666666666666666666666666666666666666 66666666666666666666666666666666! ! !! ! ! ! ! " " !" " !! ! "" "" " " !" "" * ³! ³ ³ ! * ³ ! ³ * "³"" ! !! !* * ! ! * ! ! ! "" "" """"* """! """ !"" " ³ ³* * ! * " * * * * * * *" ** * * "" ** *6666666666 6 6 6 666666666!!2 !!2 !!2 !!2 !!2 !!2!!2!!2!!2!!2!!2 !!2 !!2 !!2 !!2 !!2 !!2 !!2 !!2 !!2 !!2 !!2 !!2 !!2 !!2 (]300'350'342'338'250'324'323'310'306'288'274'268' 263' 238'332'204 ' 207 '170'99'241'96'162'242'86'115'103'Lloyd's BBQ Co./ Hormel (Lot 1, Blk 1, Pabst Addn) City of Mendota Heights0290 SCALE IN FEET GIS Map Disclaimer: This data is for informational purposes only and should not be substituted for a true title search, property appraisal, plat, survey, or for zoning verification. The City of Mendota Heights assumes no legal responsibility for the information contained in this data. The City of Mendota Heights, or any other entity from which data was obtained, assumes no liability for any errors or omissions herein. If discrepancies are found, please contact the City of Mendota Heights. Contact "Gopher State One Call" at 651-454-0002 for utility locations, 48 hours prior to any excavation. 8/28/2020 24 ft30 ft 10 ft10 ft30' B-B STREET W/B6-12 C & G8" WATERMAIN8" SANITARY SEWERRELOCATEDACCESS GATE30 ft440 ft12" SANITARY SEWERPOTENTIAL SRWRETAINING WALL From:Stacie Kvilvang To:Josh Budish Cc:Tim Benetti Subject:RE: Mendota Heights industrial development Date:Wednesday, September 9, 2020 5:17:47 PM Attachments:image001.png PFATWPemailsig_10fc2b5d-ae1c-45c4-9ce2-bc8fa504091c.png TIF Run 9-8-20.pdf Josh. See attached. With a PV rate (financing rate) of 4.5% (will use your actual) it only generates $275k in TIF. Let me know if you have questions. Stacie Kvilvang, CIPMA Senior Municipal Advisor O: (651) 697-8506 | M: (612) 801-7732 | ehlers-inc.com This e-mail and any attachments may contain information which is privileged or confidential. If you are not the intended recipient, note that any disclosure, copying, distribution or use of the contents of this message is prohibited. If you have received this e-mail in error, please destroy it and notify us immediately by return e-mail or at our telephone number, 800-552-1171. Any views or opinions presented in this e-mail are solely those of the author and may not represent the views or opinions of Ehlers Companies. From: Josh Budish <josh@endeavorshield.com> Sent: Tuesday, September 1, 2020 4:46 PM To: Stacie Kvilvang <skvilvang@ehlers-inc.com> Subject: Re: Mendota Heights industrial development Parcel ID: 27-56550-01-010 (address is 2393 Pilot Knob Road) 75,000 SF industrial building Will start construction in May 2021 and complete by November 2021 On Mon, Aug 31, 2020 at 8:55 AM Stacie Kvilvang <skvilvang@ehlers-inc.com> wrote: Josh, nice to hear from you. See below in red for answers. Stacie Kvilvang, CIPMA Senior Municipal Advisor O: (651) 697-8506 | M: (612) 801-7732 | ehlers-inc.com This e-mail and any attachments may contain information which is privileged or confidential. If you are not the intended recipient, note that any disclosure, copying, distribution or use of the contents of this message is prohibited. If you have received this e-mail in error, please destroy it and notify us immediately by return e-mail or at our telephone number, 800-552-1171. Any views or opinions presented in this e-mail are solely those of the author and may not represent the views or opinions of Ehlers Companies. From: Josh Budish <josh@endeavorshield.com> Sent: Thursday, August 27, 2020 4:51 PM To: Stacie Kvilvang <skvilvang@ehlers-inc.com> Cc: Tim Benetti <timb@mendota-heights.com> Subject: Mendota Heights industrial development Hi Stacie, Tom and I sat down today to discuss my industrial development project, Pilot Knob Business Center. I understand I’ll need to apply for TIF, but I’m wondering if you could reply back with answers to a few basic questions I have at this time. They are: 1. My understanding is the site is not within an existing TIF District so we’d have to create one. What type could be created and what is the process to do so? Our project will increase the tax base and create jobs. There may be soil corrections too. It would be an economic development TIF district with a term of 9 years. Process is after we review your project proforma and determine you need TIF (and amount) it takes about 60 days to create the district, which requires a public hearing. 2. The total costs for the public improvements (road and utilities) are estimated at $750,000. If I send you info on the project (currently assessed value and taxes, projected fully assessed value and taxes, etc.) could you give me an idea of how much TIF may be available? Just send me the PID# or #’s for parcel(s) you are developing on, the sq/ft of the building, and timing for construciton. Please let me know if you have any questions. Thank you. Josh Sent from my iPhone -- Josh Budish Principal P: 952 - 210 - 5870 E:josh@endeavorshield.com PILOT KNOB BUSINESS CENTER 2939 PILOT KNOB ROAD | MENDOTA HEIGHTS, MN 55120 SITE PLAN 73,675 SF DATE: October 13, 2020 TO: Mayor and City Council FROM: Mark McNeill, City Administrator SUBJECT: Sibley Park Comment: Introduction: At the work session meeting of October 13th, the Council will be asked to discuss the agreement between the City and ISD 197 for a portion of the athletic fields at Henry Sibley High School, known as Sibley Park. Background: For several years in the late 1980’s, ISD 197 and the Cities of Mendota Heights, West St. Paul, and Eagan met to try to negotiate ways to provide for common recreation and athletic needs of the different jurisdictions. An agreement was later negotiated between Mendota Heights and ISD 197. The agreement (attached, dated June 5, 1991) provided for improvements to City and school district-owned property at the northeastern corner of the Henry Sibley High School property. Those improvements included: • One baseball field • One soccer Field • Two softball fields • One “comfort station” • On play area The City of Mendota Heights agreed to fund the improvements, at a cost of up to $354,000. The agreement called for a mutually agreed upon operations and maintenance budget to be determined in June of each year. The agreement provided for a split of those costs with the School District. The operation and maintenance costs started at a minimum of $15,000 annually. By 2020, that amount has increased to $21,265.09, after being adjusted for inflation. In exchange for this financial participation, the City was to be able to obtain scheduling considerations for organized youth and adult athletic associations of the City during non-school hours. A system of prioritization, similar to that which has more recently been adopted by the City for scheduling its own athletic fields, is shown in Section 5.3 of the agreement. The City owns the section outlined in yellow on the attached aerial photo #1), which comprises a large section of the baseball field’s outfield. The School District owns the rest. This is a forty-year agreement, which is set to expire in 2030. As shown in the agreement, if after that time, the City wishes to continue to use the underlying property, it can buy from the school district for $1 sufficient adjoining property to make a parcel of approximately 360 ft. x 360 ft. in size. As we interpret it, that would be the shaded area on aerial photo #2, and would be the baseball playing field. On the other hand, if the City no longer wants to be a part of the arrangement, the school district is eligible to buy out the City’s land interests for $1. Action Required: At the work session, the Council will be asked to discuss, and give direction as to what, if any, changes are desired to be discussed with ISD 197. Mark McNeill City Administrator RECYCLING PROGRAM PARK AGREEMENT Page No . 2760 March 20, 1990 put in place so that the City can get more aggressive. She also asked the status of the funding for the Braslau study. Administrator Lawell responded that about $25,000 has been spent and that the city has contracted with Braslau for the second phase, to take the City's proposal through special committee. About 50% of the contract amount for phase 2 has been expended. Staff was directed to get more information on the Richfield group, including its duties, responsibilities, charter, budget and goals . Council acknowledged the annual recycling report for 1989 and commended the residents for outstanding program participation. The Council acknowledged a report from Administrator Lawell and draft copy of a tentative agreement with the school district with respect to the proposed ~ibley Park. Councilmember Blesener gave Council a background on the negotiations with the school district. She felt that the proposed agreement is fair and equitable to both parties, and stated that the Park and Recreation Commission unanimously recornmends - i ts approval. She informed Council that a design committee will be meeting to work out final design for the facility and stated that the matter is before the Council this evening for discussion and reaction. She indicated that a final draft of the agreement will be brought before Council for approval on April 3rd. She informed the Council that the proposed agreement has been very well received by the school board and that they are expected to adopt it in final form at their first meeting in April. Mayor Mertensotto stated that he would like the City Attorney to prepare a letter indicating that he has reviewed the document and approves of it. Councilmember Cummins expressed his concerns over Sections 6, "Operation of the Facility," and Sectio n 9, "Remedies. He was concerned that the City's investment is not adequately protected under the proposed agreement. With respect to Section 9, Councilmember Cummins Page No. 2761 March 20, 1990 felt that if one of the parties fails to appropriate funds, it would be unlikely that the court would order the city or district to appropriate funds which it feels are unavailable. His was also concerned that if there is to be a 40 year agreement, there should be some reasonable management parameters. He felt the agreement inadequately addresses how day to day management will be conducted by the city and the school district, and that the parties might leave themselves open to minor disagreements which may lead to major disagreement. councilmember Blesener explained that each party is always liable for yearly maintenance costs but neither may be obligated to maintenance costs beyond that level. She pointed out also that the agreement contains a specific performance clause. With regard to dispute resolution/arbitration, Mayor Mertensotto pointed out that Section 3 of the document provides that title and money matters are not subject to arbitration. Councilmember Blesener responded that the . comm ittee which prepared the draft included the language in the final sentence of Section 3 so that if either party wanted to do some extraordinary maintenance or improvements, .the other would not be liable for the costs. Ad•inistrator Lawell explained that the school district was concerned that if the City builds the improvement on district property, and at some time during the term of the agreement decides not to continue mainten.ance, the district would have to take on 100% of the maintenance. councilmember Anderson stated that he felt one source of difficulty after the initial outlay bf the city to build the facilities is the sharing in the cost of the maintenance. He interpreted Section 6.3 to mean that there is no way to anticipate how the parties will get along on the maintenance sharing maintenance - whether it is equal sharing or if the district will pay more because it did not pay the dev elopment costs. He felt the agreement leaves proportionate sharing open . COUNCIL COMMENTS ADJOURN Ayes: Nays: o ) Page No. 2762 March 20, 1990 Administrator Lawell pointed out that Section 6.2 provides for equal sharing of the costs . He stated that the disproportionate amount would be capitol items but that maintenance would be 50/50. As an example, if the district were to decide to install a batting cage, the district would pay for it. Councilmember Blesener stated that the dollar amount in Section 6.3 will be filled in. She stated that the district has met a number of City needs which it originally had problems with. She felt that the City needs to be sensitive to the district's concerns of some of the other issues. With respect to Councilmember Cummins' concerns over protecting the City's interest in the short term, she cannot see that t here is any incentiv e for the school district to walk away from the agreement. Mayor Mertensotto suggested that a "good faith dealing" clause be incorporated into the agreement. Councilmember Cummins stated that he would like a clearance letter from the city's legal counsel. city Attorney Hart was directed to prepare a letter with respect to the proposed agreement. Councilrnernber Blesener informed Council that due to other commitments she must resign from her capacity as the City representative to the School District Community Education Council, and asked that a candidate be appointed. She stated that the School District would prefer that a Council member be the City's representative, or otherwise, anyone else who has a good familiarity with the community. Treasurer Shaughnessy informed the Council of potential cuts in aids being considered by the legislature. There being no further business to come before the Council, Councilmember Hartmann moved that the meeting be adjourned. Councilmember Cummins seconded the motion. TIME OF ADJOURNMENT: 10:40 o'clock P.M . ( ) ,_. VOLUNTEER WEEK Ayes: 5 Nays: o PARK ~GREEMEN'll Page No. 2766 April 3, 1990 Councilmember Cummins arrived at 7:40 P.M. Councilmember Hartmann moved that the week April 22nd be proclaimed Minnesota Volunteer Week. Councilmember Blesener seconded the motion. Councilmember Blesener reviewed the background of the proposed $11Jle~ Park agreement for the Council and audience. She informed Council that the agreement was unanimously approved on April 2nd by the District 197 School Board and also informed Council that several people were present to discuss the matter. Park Commission Chair John Huber stated that the Commission supports the agreement and feels that it is fiscally prudent and that the risk to the City is minimized as much as possible in the agreement. He informed Council that not all playf ield development funds are being used. He also stated that the Sibley Park is part of the ov erall City plan for ballfields. Mr. Dick Spicer, member of the Park Commission and the Mend Eagan Athletic Association, and also a member of the agreement's .negotiating committee, also was present to support the agreement. He stated that the parties to the agreement must have trust. He pointed out that there are many joint agreements in the metro area. He also stated that one of the representations made to the residents in the city's referendum brochure was that an athletic facility would be constructed in conjunction with Sibley High School. Patrice Bataglia, School Board member, stated that she is extremely proud to be a Mendota Heights resident and proud that the city is willing to be a leader in shared city/school district facilities. She felt that there is a definite need for the facility. School Board member Bob Doffing stated that he feels the agreement is good and that it is fair to all parties. He further stated that the School Board is enthused about the facility. ( · .. ___ .,.. Page No. 2767 April 3, 1990 Councilmember Anderson stated that the city is bringing a great deal of improvement to the land and that he is concerned over potential risk to the city over the large capital investment in the near future. He expressed concern that whenever there is a budget shortfall, it seems that sports is the first activity considered for cutting. He felt that the type of facility being proposed would be an easy mark for budget cutting. He pointed out the City Attorney's concerns over insurance and liability risk. He stated that the city would be assigning the facility maintenance responsibility to the District and yet the city may be open to liability. He was also concerned over the priority of scheduling -from 7:00 A.M. to 6 :00 P.M. every week day for ten months of the year the School District has the fields scheduled, along with four hours on Saturday during those months. He stated that the City, with a very small budget, is bringing a great deal to the arrangement and there is no provision as to how the City would regain its capitol investment if the agreement falls apart . Mayor Mertensotto stated that the School District has agreed that it will provide liability insurance and that the city will be a "named insured", so it does not appear that the City would have any liability. Responding to the City Attorney's concern over dispute resolution, Mayor Mertensotto stated that he does not think an agreement could be written that would cover every potential issue. He further stated that he would like to see both parties act in good faith and allow some room for interpretation of the agreement in the future if need be. Responding to Councilmember Anderson's concerns, Mr. Doffing stated that it is true that in the past when budget crunches occurred, cuts in funding for athletics were threatened because the district must first provide good education . He stated that the district is required by the state to have a physical education program, and that the bud~et for coaches is included in the general fund, and other costs are supported by an operations fund. He informed Council that no cuts are ever made except in the general fund. I' I I , I • .. _-") Ayes: 5 Nays: O DUGGAN EASEMENT VACATION Page No. 2768 April 3, 1990 Councilmember Cummins stated that he shares Councilmember Anderson's concerns. He felt a good case could be made that the initial City investment is not as well protected as he would like . He felt that the City would be making a good investment if the agreement runs for the full 40 year term. He stated that he would like to see strong language with respect to day to day management issues, including a 6 member committee of citizens being appointed. He felt that this mechanism, a less official body to deal with day-to-day problems, may prove helpful in the future, and asked if the School District would be agreeable to implementing such an approach if the need someday arises. He felt that the rewards of the proposal outweigh the risks and that it is a good, fair agreement. Councilmember Hartmann stated that he hopes the parties will act in good faith, and that while he has concern that there is a certain amount of risk it should be possible for both parties to benefit. Councilmember Blesener moved to approve the agreement for the joint athletic facility with the School District and authorize its execution by the Mayor and City Clerk. Mayor Mertensotto seconded the motion. Mayor Mertensotto opened the meeting for the purpose of a public hearing on an application from Ultan Duggan for the vacation of a drainage and utility easement between Lots 6 and 7, Block 3, Copperfield 3rd Addition. Mr. Duggan informed council that he built his home across the lot line between his two lots and that there is an easement over the interior lot lines. Mayor Mertensotto pointed out that staff has indicated there is no City need for the easement. He asked for questions and comments from the audience . There being no questions or comments, Councilmember Hartmann moved that the hearing DATE: October 13, 2020 TO: Mayor and City Council FROM: Mark McNeill, City Administrator SUBJECT: Charitable Gambling Discussion Comment: Introduction: At the City Council work session on October 13th, the City Council will be asked to discuss its desire to consider allowing changes to City Code which would permit charitable gambling in Mendota Heights. Background: This topic was most recently discussed by the Council at a work session in September, 2019. Background information from that discussion, including a draft of what would be needed to be approved to permit this, is attached. The Council chose not to pursue the possibility of charitable gambling at that time. One of the entities which made the inquiry in 2019 has again contacted the Mayor, asking for it to be considered. Mayor Garlock has indicated his willingness to have it placed on this work session’s agenda. Action Required: If the Council is willing to consider this further, it should direct that formal consideration be made at a future City Council meeting. Mark McNeill City Administrator City Council Work Session Memo DATE: September 24, 2019 TO: Mayor, City Council, and City Administrator FROM: Mark McNeill, City Administrator Lorri Smith, City Clerk SUBJECT: Proposed Ordinance to Allow for Charitable Gambling in the City COMMENT: City staff has had two inquiries from nonprofit organizations wishing to apply for premises permits to conduct charitable gambling in the city. The proposed ordinance would ensure that charitable gambling in the city is conducted by organizations licensed under Minnesota Statutes and that the proceeds are used primarily for the betterment of the community. This chapter would regulate all forms of lawful gambling except bingo conducted within a nursing home or a senior citizen housing project, or by a senior citizen organization. The ordinance follows Minnesota Statutes and cannot be less restrictive. Eligible locations for gambling include only licensed on or off sale liquor establishments, or bingo halls. The proposed ordinance would only allow gambling at on sale liquor establishments. Organizations that are eligible to conduct gambling include fraternal, religious, veterans, or nonprofit organizations. The organizations must first obtain a gambling license from the State of Minnesota through the Gambling Control Board. An eligible organization must have at least 15 active members, have been in existence for at least three years, and have a gambling manager identified. They must not exist for the sole purpose of conducting gambling. Once an organization is granted a license from the state, it would then apply for a premises permit for a specific gambling location. When submitted to the State of Minnesota, this premises permit application must be accompanied by a resolution from the city council granting approval. The premises permit runs concurrently with the organization’s license and is perpetual. Gambling proceeds may only be used for allowable expenses identified by statute. The Gambling organization would be required to submit monthly and annual reports to the State of Minnesota, of which the City would receive copies. The ordinance could require an organization to expend at least 50% of its expenditures on lawful purposes within the City of Mendota Heights, or within the Mendota Heights’ trade area. The trade area is proposed to be defined as the cities of Sunfish Lake, Eagan, Mendota, Lilydale, and West St. Paul. The ordinance could also require that an organization contribute 10% of its net profits monthly to a fund administered by the City. The city could then disburse the funds collected as allowed under state law. An example of a possible use would be the funding of the 4th of July fireworks, which is currently tax-funded. Financial Impact: The City could assess an annual investigation fee of $100 (the maximum allowed by state statute) to each organization licensed to conduct gambling in Mendota Heights. This fee would be the amount available to cover the annual costs for regulation by the city. One City regulatory cost would be to monitor the monthly reports—the amount of time needed for that would be dependent on the number of gambling sites. There would also be the staff time needed to submit a yearly report which would be necessary to submit to the State if the City is to receive the 10% contribution. The enforcement of charitable gambling laws themselves is the responsibility of the State of Minnesota, and so there is no additional local cost for that. Recommendation: Staff recommends that the Council give direction as to if they would like to allow charitable gambling in the city and if so, what changes they would like to see included or changed in the proposed ordinance. Any such ordinance would them be brought to a future regular City Council meeting for consideration. CITY OF MENDOTA HEIGHTS DAKOTA COUNTY, MINNESOTA ORDINANCE NO. ___ AN ORDINANCE ADDING TITLE 4 CHAPTER 8 RELATED TO GAMBLING The City Council of Mendota Heights does hereby ordain: Section 1. Mendota Heights City Code Title 4 Chapter 8 is hereby added to read as follows: 4-8. Gambling. 4-8-1. Purpose. The purpose of this chapter is to ensure that charitable gambling in the city is conducted by organizations licensed or exempt from licensing under Minnesota Statutes and that the proceeds from such gambling are used primarily for the betterment of the residents and businesses of the community. These restrictions shall be no less restrictive than Minnesota Statutes or regulations and shall apply to all forms of lawful gambling. 4-8-2. Applicability. This chapter shall regulate all forms of lawful gambling within the city except bingo conducted within a nursing home or a senior citizen housing project or by a senior citizen organization and the following are followed: A. The prizes for a single bingo game do not exceed $10.00; B. Total prizes awarded at a single bingo occasion do not exceed $200.00; C. No more than two bingo occasions are held by the organization or at the facility each week; D. Only members of the organization or residents of the nursing home or housing project are allowed to play in a bingo game; E. No compensation is paid for any persons who conduct the bingo; and F. A manager is appointed to supervise the bingo. 4-8-3. Approval required. Unless excepted from regulation by this chapter and not including exempt or excluded lawful gambling as defined by state law, it is unlawful for any organization to conduct lawful gambling in the city without approval from the city council in the form of a premises permit and without a permit issued by the city clerk or designee. 4-8-4. Applications. A. Applications to conduct lawful gambling shall be considered and approved by the council at regular meetings. B. Only applications submitted by eligible organizations will be considered for approval. C. An application organization shall provide adequate proof that it has at least 15 active members and that at least 15 of its members are either employed or live within the city or that it is a nationally known organization as determined by the city. D. An applicant for a premises permit shall be subject to a criminal background investigation which shall include investigation of the organization and the gambling manager. E. No application for a premises permit will be considered or approved by the city council until the investigation fee is paid in full. The investigation fee under this chapter shall be in an amount set forth by city council resolution. 4-8-5. Regulations and restrictions. A. In addition to regulations imposed by the state, all information and reports required to be submitted to the state shall also be submitted to the city, both with the application and on an annual basis. Failure to comply with this reporting requirement shall result in suspension of the premises permit. The city council may revoke the premises permit where the organization has failed to meet the reporting requirements on more than one occasion. B. Lawful gambling may be conducted only in on-sale liquor licensed establishments in the city, which are either owned or leased by the eligible organization. C. Eligible organizations may, however, be granted off-site gambling approval for lawful gambling in a premises other than on-sale liquor licensed establishments for no more than four consecutive days. 4-8-6. Distribution of proceeds. Every organization conducting lawful gambling within the city of Mendota Heights shall expend 50 percent of its expenditures derived from lawful gambling on lawful purposes conducted or located within the city of Mendota Heights or the city of Mendota Heights' trade area. The City of Mendota Heights' trade area is defined as the cities of Sunfish Lake, Eagan, Mendota, Lilydale, and West St. Paul. Every organization must submit a report to the city each January listing all lawful purpose expenditures from January 1 to December 31 of the preceding year. The report shall identify the name of the entity to whom the check was written, the city location of the recipient, and the amount of the donation. 4-8-7. Penalties. Violation of any provision of this Chapter shall be fined in accordance with section 1-4-1 of the city code. Additionally, a violation of this chapter shall be reported to the State Gambling Control Board and a recommendation shall be made for suspension, revocation or cancellation of an organization’s license. Section 2 . This Ordinance shall be effective immediately upon its passage and publication. Adopted and ordained into an Ordinance this ___ day of ________, 2020. CITY COUNCIL CITY OF MENDOTA HEIGHTS Neil Garlock, Mayor ATTEST ___________________________ Lorri Smith, City Clerk DATE: October 13, 2020 TO: Mayor, City Council, and City Administrator FROM: Cheryl Jacobson, Assistant City Administrator SUBJECT: Employee Vacation Leave Balance Carryover INTRODUCTION The City Council is asked to consider increasing the number of hours of vacation leave an employee can carryover from 2020 to 2021. BACKGROUND Section 10 of the City’s Personnel Code provides for employee vacation leave. Under this policy employees are encouraged to take yearly vacations but are allowed to accrue a maximum of 200 hours of vacation leave “on the books”. On December 31 of each year, any hours over 200 are forfeited. Due to COVID-19, employee use of vacation time has been impacted. With restrictions on travel, the State shutdown earlier this spring, and COVID-19 workload, many employees have built up more accrued vacation leave than usual. Employees are encouraged to use their vacation leave during the remaining months of this year, however, for some getting vacation leave banks below 200 hours will be difficult to do. ACTION REQUESTED Staff will discuss with Council granting a one-time increase in the number of vacation hours that an employee can carryover from 2020 to 2021. Increasing the maximum carryover will alleviate employee concern of losing earned benefits and allow for adequate staffing in the remaining months of the year. The proposed increase would apply to union and non-union employees. And any policy change increasing the number of carryover hours would include a sunset date as determined by City Council.