Council split on request for development agreement

    On a 3-2 vote Monday night, the Clear Lake City Council has set a public hearing date for a proposed development agreement for the redevelopment of the former Fredriksen Welding shop located at 209 1st Ave. S.
    Developer Tim Stenberg wants to build five new two-story condominiums on the L-shaped site and was requesting assistance from the City to offset some of the costs that

he will incur as a result of environmental circumstances at the site.  Demolition of buildings will also involve asbestos abatement, including soil remediation and water quality improvements. 
    The Council had anticipated Stenberg would seek an agreement with a five-­year property tax rebate of up to $60,000 that would be used to defray costs for environmental expenses.  However, Monday Stenberg suggested the agreement be for up to $25,000.  He asked that the city commit the difference of $35,000 to improving two public alleys in the proposed development area.  Stenberg explained that by structuring the agreement as he proposed, the public alleys could be improved without assessments to neighbors; tax revenue from the Fredriksen on First project would pay for the work. 
    Councilmen Mike Callanan and Jim Boehnke voted no to a motion to set a public hearing for the proposed development agreement for Feb. 6, saying they felt the city’s participating in private development could set a precedent for future developments.
    Councilman Terry Unsworth called the project good and thanked Stenberg for bringing it to the Council.   He noted the CLEAR Project has funds available for projects which benefit the lake watershed area.  The Fredriksen welding shop area is located within the lake watershed. 
    The city’s agreement would allow reimbursement limited to only those items that would be related to environmental work, such as asbestos abatement; contaminated soil removal and disposal; environmental site analysis, engineering, and - Read More Via e-Edition