10-27-2020 CCMHUTCHINSON CITY COUNCIL
MEETING MINUTES
TUESDAY, OCTOBER 27, 2020
CITY CENTER — COUNCIL CHAMBERS
(The City Council is provided background information fog° agenda iten2s in advance by city staff, committees and boards. Many
decisions regarding agenda iten2s are based upon this information as well as: City policy and practices, inputfiron2 constituents,
and other questions or information that has not yet been presented or discussed regarding an agenda iten2.)
1. CALL MEETING TO ORDER — 5:30 P.M.
(a) Approve the Council agenda and any agenda additions and/or corrections
Matt Jaunich, City Administrator, noted that item 10.5 will be added to the agenda to approve issuing
a transient merchant license to Katy Wright on November 6 & 7, 2020, at the Depot.
Motion by Christensen, second by Czmowski, to approve agenda with the additional item noted. Roll
call vote was taken: Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye.
Motion carried unanimously.
2. INVOCATION — River of Hope
(The invocation is a voluntary expression of the private citizen, to andfor the City Council, and is not intended to affiliate the
City Council with, or express the City Council's preferencefor, any religious/spiritual organization. The views or beliefs
expressed by the invocation speaker have not been previously reviewed or approved by the Council or staff)
3. PLEDGE OF ALLEGIANCE
4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY
(a) Resolution No. 15226 — Resolution Accepting $600.00 Donation from Walter & Lynne Clay for
the Paved Trail Project Connecting the Luce Line Trail to the Law Enforcement Memorial Park
(b) Resolution No. 15229 — Resolution Accepting a Donation of the "Seat of Sound" Sculpture
Motion by Cook, second by Czmowski, to approve Resolution Nos. 15226 and 15229. Roll call
vote was taken: Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye.
Motion carried unanimously.
Council Member Cook commented that the artist of "Seat of Sound" offered to gift the sculpture
to the City. This piece was part of the 2018 Sculpture Stroll.
PUBLIC COMMENTS
(This is an opportunity fog° members of the public to address the City Council. If the topic you would like to discuss is on the agenda,
please ask the Mayor if he will be accepting public comments during the agenda item if not a public hearing. Ifyou have a question,
concern or comment, please ask to be recognized by the mayor state your name and address for the record. Please keep
comments under 5 minutes. Individuals wishing to speakfor more than five minutes should ask to be included on the agenda in
advance of the meeting. All comments are appreciated, but please refrain fi on2 personal or derogatory attacks on individuals)
5. CITIZENS ADDRESSING THE CITY COUNCIL
Pat May presented before the Council. Mr. May noted that he learned through social media that a
developer is interested in constructing a three-story apartment complex on 3rd Avenue NW along the
river and Luce Line Trail where the old Cenex plant was. Mr. May expressed that he feels that this
setting is so beautiful in nature and does not feel that this is the best location for an apartment
complex. Mr. May asked if Cenex, the former owner of the land, was responsible for some of the
costs associated with removal of their old business site. Mr. May expressed that he feels strongly
against an apartment complex going up in this location.
Brad Burch, 744 Milwaukee Avenue, presented before the Council. Mr. Burch expressed that he
CITY COUNCIL MINUTES October 27, 2020
does not wish for an apartment complex to be constructed on the vacant lot on 3rd Avenue NW either
due to the beautiful nature of it. Mr. Burch asked details/options of the purchase agreement. Mr.
Burch requested that the Council not take action on this item tonight and table it to allow for more
public input.
Deb Billiet, 50 Century Avenue SE, presented before the Council. Ms. Billiet also expressed her
opposition to the construction of a large apartment complex on this lot. Ms. Billiet expressed that she
feels that there are much better uses for this area other than an apartment complex. Ms. Billiet feels
that the general population should get an opportunity to weigh in on the development of this area.
Sara Young, James Street, presented before the Council. Ms. Young spoke of the downtown vision
and action plan that was developed in 2013 and how the river front was a high priority for users. Ms.
Young stated that she believed housing and commercial development was not part of that vision plan.
6. APPROVAL OF MINUTES
(a) Regular Meeting of October 13, 2020
Motion by Sebesta, second by Christensen, to approve minutes as presented. Roll call vote was
taken: Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion
carried unanimously.
CONSENT AGENDA
(The iten2s listedfor consideration will be enacted by one motion unless the Mayor, a member of the City Council or
a city staff member requests an item to be removed. Traditionally iten2s are not discussed)
7. APPROVAL OF CONSENT AGENDA
(a) Consideration for Approval of Resolution No. 15224 - Resolution to Activate Deferred
Assessments
(b) Consideration for Approval of Resolution No. 15225 — Resolution for Certification of Special
Assessments from the City of Hutchinson to McLeod County Auditor
(c) Consideration for Approval of Issuing Short -Term Gambling License to Crow River Cutters from
November 1 — December 22, 2020, at Main Street Sports Bar
(d) Consideration for Approval of Resolution No. 15227 — Resolution Adopting Findings of Fact and
Reasons for Approval of a Preliminary and Final Plat for Hahn's Addition to Maryview
(e) Consideration for Approval of Resolution No. 15228 — Resolution Adopting Findings of Fact and
Reasons for Denial of Variance Application to Reduce the Side Yard Setback from Eight Feet to
Six Feet on the Property Located at 1891 West Shore Drive SW
(f) Claims, Appropriations and Contract Payments
Motion by Cook, second by Sebesta, to approve Consent Agenda. Roll call vote was taken:
Cook — aye; Czmowski — aye; Sebesta — aye; Christensen — aye; Forcier — aye. Motion carried
unanimously.
PUBLIC HEARINGS — 6:00 P.M. - NONE
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CITY COUNCIL MINUTES October 27, 2020
COMMUNICATIONS, REQUESTS AND PETITIONS
(The purpose of this portion of the agenda is to provide the Council with information necessary to craft wise policy.
Includes items like monthly or annual reports and coniniunications f on2 other entities.)
UNFINISHED BUSINESS
8. APPROVE/DENY ENTERING INTO PURCHASE AGREEMENT FOR 3RD AVENUE NW SITE
(FORMER CENEX FERTILIZER PLANT)
Mile Seppelt, EDA Director, presented before the Council. Mr. Seppelt explained that a developer
has approached the EDA and shown an interest in constructing a "high end" apartment project on the
former Cenex fertilizer plant site located on 3rd Avenue NW. The developer has asked for the City to
enter into a purchase agreement. The purchase agreement with the City is at a proposed lot price of
$351,329. If the sale is completed, the EDA and the City would be repaid for costs incurred in 2008
to purchase and clear the site for redevelopment. The purchase agreement is needed to provide the
developer with some assurance that they will be "first in line" to purchase the lot once they complete
their due diligence process. The City is not obligated to complete the sale even if the purchase
agreement is entered in to. If the proposed development is found to be unacceptable, the City
Council can refuse the needed zoning change, refuse to approve the development agreement, reject
the site plan, refuse to approve the needed Housing TIF District and/or refuse to adopt the ordinance
needed to sell the property.
Mr. Seppelt clarified that at no time when this site was cleared was the intention for it to remain a
three -acre park, but rather to be developed. The site has been cleared and vacant for over 10 years.
Mr. Seppelt explained how TIF districts are set up. Mr. Seppelt explained the benefits of this
development — pay back to the City and EDA which allows for other things to happen; revitalize the
neighborhood; follows the Imagine Hutchinson Plan for housing in the downtown/river area; provides
much needed housing and strengthens the downtown area. Mr. Seppelt explained that this is just the
very start of potential development of this project and there will be many opportunities for public
input. Mr. Seppelt also provided an addendum to the purchase agreement that clarifies the conditions
of the purchase agreement.
Council Member Czmowski asked if the developer has been asked to include storefronts as part of the
project. Mr. Seppelt noted that at this time everything is on the table and up for discussion and ideas.
Council Member Cook noted he has concerns with the height of the proposed project and the density
of it. Council Member Cook noted that he feels a three-story project fits better on the south side of
the river than on the north side. He would rather not have such a tall structure on the north side. He
also noted that the downtown plan also showed more clustered -type townhouses in the area and not
such high structures. He also noted there are other zoning regulations that relate to the area that may
have restrictions for the project.
Council Member Cook asked about hiring an architect to design something that more realistically
meets the downtown plan, river overlay and stormwater management plan. He also suggested
working with local developers or the HRA on a project in this area. Or perhaps even the City making
the EDA whole and paying them back their investment on the lot.
Council Member Christensen agreed that she feels a three-story structure is rather high for the area,
CITY COUNCIL MINUTES October 27, 2020
but is not opposed to a project being developed with townhomes or brownstones.
Council Member Cook suggested that the developer be approached to see if a scaled -down
configuration could be considered before a purchase agreement is entered in to.
The Council voiced to table and have further discussions with the developer about the Council's
thoughts.
Motion by Cook, second by Christensen, to table this item to allow more discussions with the
developer on an altered development plan. Roll call vote was taken: Czmowski — aye; Sebesta — nay;
Christensen — aye; Cook — aye; Forcier — aye. Motion carried 4 to 1.
Council Member Cook suggested asking the HRA to determine what the vacancy rate would be if a
50-unit project is developed even after the additional Highfield Apartments and Century Court West
townhomes are constructed.
NEW BUSINESS
9. APPROVE/DENY AMENDED BYLAWS FOR HUTCHINSON FIRE DEPARTMENT RELIEF
ASSOCIATION
Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich noted that adjustments
have been made to the amended bylaws that were published in the Council packet and those were
handed out this evening.
Jason Sturges, Vice President of Hutchinson Fire Department Relief Association, presented before
the Council. Mr. Sturges explained that the relief association has been working closely with Flaherty
& Hood, P.A. to create a new set of bylaws to add the lump sum pension payout option. The
amendments to the bylaws create a lump sum option to promote firefighter retention, improve long
term fund stability/growth and reduce long term liability to the fund. Additional focal points of the
bylaws include keeping retired and deferred members on the same existing monthly payout plan;
current active firefighters would have the option of monthly payout or the lump sum payout; new
firefighter hires will only be eligible for a lump sum payout; and the lump sum payout must be
financially equivalent to the existing monthly payout structure to give current active firefighters a fair
option. Prior to these amendments, the Hutchinson Fire Department Relief Association is one of only
two fire department relief associations in the state that still offer only a monthly payout. There is no
pension pay increase associated with these bylaws.
Council Member Cook asked for some clarifications and offered some suggestions to the bylaws.
Marc Max, Financial Advisor, clarified items addressed by Council Member Cook related to pension
payouts.
Motion by Cook, second by Christensen, with Forcier abstaining, to approve amended bylaws for
Hutchinson Fire Department Relief Association. Roll call vote was taken: Czmowski — aye; Sebesta
— aye; Christensen — aye; Cook — aye. Motion carried unanimously.
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CITY COUNCIL MINUTES October 27, 2020
10. APPROVE/DENY SETTING BUDGET WORKSHOP FOR NOVEMBER 24, 2020, AT 4:00 P.M.
Matt Jaunich noted that the enterprise funds and the proposed general fund and tax levies will be
reviewed at this workshop.
Motion by Czmowski, second by Forcier, to set budget workshop for November 24, 2020, at 4:00
p.m. Roll call vote was taken: Czmowski — aye; Sebesta — aye; Christensen — aye; Cook — aye;
Forcier — aye. Motion carried unanimously.
10.5 APPROVE/DENY ISSUING TRANSIENT MERCHANT LICENSE TO KATY WRIGHT FOR
NOVEMBER 6 & 7, 2020, AT THE DEPOT
Matt Jaunich explained that Katy Wright has applied for a transient merchant license to hold a holiday
market event at the Depot on November 6 & 7, 2020. A license is needed due to the event being held
on public property.
Motion by Czmowski, second by Sebesta, to approve issuing transient merchant license to Katy
Wright on November 6 & 7, 2020, at the Depot. Roll call vote was taken: Czmowski — aye; Sebesta
— aye; Christensen — aye; Cook — aye; Forcier — aye. Motion carried unanimously.
GOVERNANCE
(The purpose of this portion of the agenda is to deal with organizational development issues, including policies,
performances, and other matters that manage the logistics of the organization. May include monitoring reports,
policy development and governance process items.)
11. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS
(a) City of Hutchinson Financial Report and Investment Report for September 2020
(b) Hutchinson Housing & Redevelopment Authority Board Minutes from September 15, 2020
(c) Planning, Zoning, Building Department Quarterly Reports for 2020
MISCELLANEOUS
12. STAFF UPDATES
Kent Exner — Mr. Exner noted that leaf vacuuming operations have been suspended due to the snow and
hope to resume next Monday. Hwy 212 and east two-lane gaps near Carver and Cologne are fully -
funded and final design is well underway. The project will be bid this Spring and begin next Summer
2021. The westerly gaps between Cologne and Norwood Young America are being pursued and could
start in 2024. Mr. Exner also spoke about residents that could clean out drains that are plugged with
leaves.
Matt Jaunich — Mr. Jaunich reminded everyone that election day is next Tuesday, November 4th at the
Rec Center from 7:00 am — 8:00 p.m. Absentee voting is taking place at the City Center for the rest of
the week from 8:00 am — 4:00 pm, Saturday 10:00 am — 3 :00 pm and next Monday 8:00 am — 5 :00 pm.
He also noted that the State signed a bonding bill. He further noted that he is holding stakeholder
meetings on the marketing/branding plan.
13. COUNCIL/MAYOR UPDATE
Steve Cook — Council Member Cook asked for an update on the Rec Center roof — Matt Jaunich
noted that he will follow up with an update to the Council. Council Member Cook also asked about
ash trees and diversifying more aggressively. He noted that emerald ash borer is surrounding
McLeod County and Cook has stressed diversifying the ash trees throughout the community and
CITY COUNCIL MINUTES October 27, 2020
doing so during street projects. He asked the Council their thoughts on diversification and asked if
they felt staff should work at opportunities to diversify. Council Member Christensen expressed that
she was in agreement with diversifying. Mr. Jaunich clarified if whether or not Council Member
Cook feels the City needs to be more aggressive overall in diversifying or more aggressive than what
is planned? Council Member Cook noted he would like the City to be more aggressive if there are
opportunities available, such as with street projects. Kent Exner suggested taking the ash trees on
projects that are in the right of way and diversifying with others.
Mary Christensen — Council Member Christensen noted that the streetlights are out on Washington
Avenue on the east side and streetlights are out on 5th Avenue. Mr. Exner addressed the streetlight
issues which have to do with the subcontractor on the Main Street project
All council members reminded everyone to vote.
ADJOURNMENT
Motion by Cook, second by Czmowski, to adjourn at 7:25 p.m. Roll call vote was taken: Czmowski
— aye; Sebesta — aye; Christensen — aye; Cook — aye; Forcier — aye. Motion carried unanimously.
ATTEST:
Gary T. Forcier Matthew Jaunich
Mayor City Administrator