By Patrick Tepoorten

What appeared to be a simple request by Daniel Birdsall of Five Points Development at the last Rush City council meeting, turned in to anything but on Monday night. Birdsall has requested that builders at Rush Creek Estates be allowed to pull building permits for a small percentage of lots before the first ìlift,î commonly referred to as a layer, of blacktop was installed.

According to city ordinance, those permits cannot be issued until after the first lift is installed. Based on the councilís understanding of the subdivision ordinance, a special meeting of the Planning Commission (PC) was called to discuss the stringent requirement.

That meeting was cancelled by City Administrator Daniel Hoffman upon review of the ordinance. In a June 23 memo to the council, Hoffman noted verbiage in the ordinance that reads, ìExceptions to this provision may be granted by the city council at its discretion as part of the development contract.î

Based on that exception, Hoffman stated, ìIn light of this, I have cancelled the special PC meeting...î Instead, the issue was brought again before the council.

Five Pointsí Steve Rindahl attended the meeting and once again explained to the council the reason for the request to pull permits before the first lift.

He stated that by the time the first lift is installed, the building season would be almost over. That would likely mean homes could not be offered for sale until spring. He added that hot-mix plants close by mid-November and that lawns could not be installed that late in the season.

Being able to get started early, he said, would be ìbeneficial to the builders and developers. They could be selling by October.î

Councilman Mick Louzek warned Rindahl that, if the exception were granted, ìdonít even think about coming back here in November and saying ëwe need to sell without blacktop.í It isnít ever going to happen.î

Mayor Mike Skalsky suggested that, if granted, the development be forced to follow nine guidelines for doing so put forth by SEH, the cityís engineering firm, that seek to protect the city from risk.

SEH suggested that water and sewer be present before permits are issued, and that Certificates of Occupancy be withheld until the first lift is installed.

It also called for developers to accommodate the installation of all public services by accessing building sites away from service construction areas.

Two members of the PC, Roger Allen and Mitch Haugrud, attended the meeting and expressed dissatisfaction with the councilís seemingly agreeable disposition on the subject.

ìAs a planning commission member I am disappointed that we are not going to debate this,î said Haugrud. ìIt sets a bad precedent. The city should not give up any control.î

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Allen added that the city has already been ìburned twiceî by developers requesting the same thing, only to see agreements fall through. Mentioned specifically was Rush Landing.

Louzek, agreeing that granting the permits would be bad precedent, stated that Five Points knew the time-line when they started and didnít understand why time was suddenly an issue.

Rindahl replied that utilities were taking longer than expected and councilman David Bengtson added that ìairport issuesî held up the schedule as well. Still, Bengtson was concerned about possible risks to the city in granting the exception.

ìWhere is the city taking on other risks?î inquired Rindahl. ìWeíre not asking for Certificates of Occupancy.î He also noted that other municipalities, such as White Bear Lake, Hugo, Forest Lake, and Chisago City, have all granted permits before first lift.

ìOnce we grant one exception, we have to grant more. They (developers) are going to be on us. Theyíve got money tied up,î responded Louzek.

ìIssue permits with conditions then,î replied Rindahl.

ìBut weíll have already made the exception,î said Louzek.

Haugrud reiterated that the developers knew what they were getting into and reminded the council that the city is not obligated to help out, speed up, or take on additional risk for their sake.

Despite concerns, Louzek, Bengtson, and Skalsky also stated that they didnít want an ordinance that was so strict it would chase development away. Councilman Jerry Janssen suggested that the council put off making a decision on the matter for a month. Skalsky agreed.

ìMaybe the developerís agreement will be done by then,î he said. ìIím not real comfortable right now. But with a polished developers agreement everyone will be a bit more comfortable.î

A decision was tabled for a minimum of four weeks.

In other city news:

ï The city made available roughly $48,000 in Revolving Loan Fund (RLF) money to Chisago County HRA to cover expenses associated with Countryside Senior Apartments.

The city and the HRA had decided when the project was conceived that, in order to keep rents low, bonds for the project would have to be for less than the actual cost of the project. Accordingly, the city had agreed to use available funds to cover the shortfall.

The use of RFL money was a first step to covering the roughly $300,000 left outstanding on the project. Hoffman stated that fund balances in the general fund and community development fund will comprise the rest.

The total is considered a loan by the city to the HRA for the project, and HRAís Chris Eng noted that excess cash flows at the apartment complex would be used to pay the city back.

Hoffman stated that the loans would ìmost likelyî be interest free.

ï The Chisago County Department of Environmental Services has informed the city that 15 of the cityís 28 private septic systems are in need of upgrade or replacement. Five septic systems were deemed ìimminent health threatsî by the county. The city is requested to look into how many of these systems could be placed on the municipal system.

Those systems called a health threat have 60 days to upgrade, replace, or discontinue use of their systems.

ï Anderson Acres, the development that has run into issues with the mapping of wetlands, asked for and received a 60-day extension for approval of the final plat.

ï The city purchased two pieces of property within the city for a total of $114, 555.

ï The council approved an exit audit for the treasurerís position, currently filled by Hoffman, who advised the council it is always a good idea to have an audit done between treasurers.

ï Tax Increment Financing District Number Three within Municipal District Number 2 was decertified by the council. Hoffman explained that the district ìnever went anywhereî and that it has become ìessentially moot.î

ï A special council meeting, date unknown at this time, is planned for the first week of July. It will allow the council and Hoffman to address any last minute issues before Hoffman leaves his position on July 7.