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08-26-2025HUTCHINSON CITY COUNCIL MEETING MINUTES TUESDAY, AUGUST 26, 2025 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, inputfi one 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. Mayor Gary Forcier called the meeting to order. Members present were Tim Burley, Pat May, Chad Czmowski and Dave Sebesta. Also present were Matt Jaunich, City Administrator and Marc Sebora, City Attorney. (a) Approve the Council agenda and any agenda additions and/or corrections Motion by Burley, second by Sebesta, to approve the agenda as presented. Motion carried unanimously. 2. INVOCATION — Our Savior's Lutheran Church (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. 15900 — Resolution Accepting $25,000 Donation from Citizens Bank & Trust Co. for Grandstand Project at Veterans' Memorial Field Motion by May, second by Czmowski, to approve Resolution No. 15900. Matt Jaunich, City Administrator, noted that there was also a $4990.86 donation from the Hutchinson Huskies included on the resolution. Motion carried unanimously. PUBLIC COMMENTS (This is an opportunity {on° 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. If you have a question, concern or comment, please ask to be recognized by the mayor —state your name and addressfor 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 con2n2ents are appreciated, but please refi^ain fi^on2 personal or derogatory attacks on individuals) 5. CITIZENS ADDRESSING THE CITY COUNCIL 6. APPROVAL OF MINUTES (a) Regular Meeting of August 12, 2025 Motion by May, second by Burley, to approve minutes as presented. Motion carried unanimously. CONSENT AGENDA (The iten2s listed fog° consideration will be enacted by one motion unless the Mayor, a member of the City Council or a city staff nieniber requests an item to be removed. Traditionally iten2s are not discussed) 7. APPROVAL OF CONSENT AGENDA (a) Consideration for Approval of Sanitary Sewer for The Landing Project (b) Consideration for Approval of Closing 200 Block of Hassan Street on September 5, 2025, for Customer Appreciation Event CITY COUNCIL MINUTES —August 26, 2025 (c) Consideration for Approval of Issuing Temporary Liquor License to Hutchinson Jaycees on September 12-13, 2025, at McLeod County Fairgrounds (d) Consideration for Approval of Issuing Parade Permit to Hutchinson High School Student Council on September 24, 2025, for Homecoming Parade (e) Consideration for Approval of Resolution No. 15894 — Resolution Adopting Findings of Fact and Reasons for Approval of a Final Plat for Wendwood With Favorable Planning Commission Recommendation (f) Consideration for Approval of Resolution No. 15895 — Resolution Adopting Findings of Fact and Reasons for Approval of Conditional Use Permit for a Data Center in an I-2 Zoning District Located at 1025 5 h Avenue SE With Favorable Planning Commission Recommendation (g) Consideration for Approval of Resolution No. 15896 - Resolution Adopting Findings of Fact and Reasons for Approval of Conditional Use Permit for a Planned Development in the Shoreland District for an 81-Unit Apartment Building in a C-3 Zoning District Located at 126 Franklin Street SW With Favorable Planning Commission Recommendation (h) Consideration for Approval of Resolution No. 15898 — Resolution Adopting Findings of Fact and Reasons for Approval of a Lot Split at 951 Golf Course Road NW With Favorable Planning Commission Recommendation (i) Consideration for Approval of Resolution No. 15899 — Resolution Adopting Findings of Fact and Reasons for Approval of a Variance Application to Exceed the Residential Unit Density Allowable and to Deviate from the Minimum Open Space and Design Criteria for The Landing Project With Favorable Planning Commission Recommendation (j) Consideration for Approval of Resolution No. 15897 — Resolution to Dispose Surplus Property (IT Equipment) (k) Consideration for Approval of Resolution No. 15902 — Resolution Adopting Findings of Fact and Reasons for Approval of a Sketch Plan and Comprehensive Plan Amendment for an Apartment Project Located at 135 North High Drive NE With Favorable Planning Commission Recommendation (1) Appointment of Steve Kropp to the Parks/Recreation/Community Education Advisory Board to August 2028 (m)Claims, Appropriations and Contract Payments Item 7(a) was pulled for separate discussion. Motion by Czmowski, second by May, to approve consent agenda with the exception of Item 7(a). Motion carried unanimously. Item 7(a) had further discussion. Matt Jaunich, City Administrator, noted that bids were received yesterday for The Landing sanitary sewer project. The bid tabulation and copies of the bids have been distributed this evening. Hjerpe Contracting Inc. came in with the lowest bid at $108,704.50. 2 CITY COUNCIL MINUTES —August 26, 2025 Motion by May, second by Sebesta, to approve Item 7(a). Motion carried unanimously. PUBLIC HEARINGS — 6:00 P.M. 8. CONSIDERATION OF ORDINANCE NO. 25-857 — AN ORDINANCE APPROVING REVISIONS TO SECTIONS OF THE HUTCHINSON CITY CHARTER AS RECOMMENDED BY THE CHARTER COMMISSION Marc Sebora, City Attorney presented before the Council. Mr. Sebora explained that the Charter Commission has submitted a recommendation to the City to revise Chapter 4 of the City Charter. The main revision removes the current designated seat system for council member seats and removes the requirement of having a primary election. Removing the designated seat system would revert to voting for council members at -large and having no primary election. Other revisions being recommended coincide with statutory language related to election items. Tiffany Barnard, Charter Commission Chair, presented before the Council. Ms. Barnard provided some context to the recommendation that was put forth. One reason was that candidate filing has been on the decline and perhaps an at -large system would create more interest or engagement. Another reason was that since the designated seats don't represent a population, such as a ward system, it was thought that perhaps an at -large system would serve as well. A third reason was that eliminating the primary could possibly save some expense and allow for the filing period to be closer to general election time. Motion by Czmowski, second by May, to close public hearing at 6:20 p.m. Motion carried unanimously. Mr. Sebora explained methods that Charter changes can be made. One is the process being considered now, via ordinance adopted by the Council. Another method is for the proposed revisions to be placed on an upcoming ballot for public vote. The Charter Commission has the authority to place Charter revision questions on the ballot. Mr. Sebora also explained that if the Council does approve the ordinance proposed, it would take effect 90 days from the date of adoption. During that 90 day period, citizens can circulate a petition and file with the City a petition with 1010 verified signatures of registered voters requesting that any of the proposed changes be voted on at a referendum. Motion by Sebesta, second by Burley, to deny Ordinance No. 25-857. Motion carried unanimously. Mr. Sebora noted that an ordinance with the revisions coinciding with the statutory language related to election items come before the Council in the near future. COMMUNICATIONS, REQUESTS AND PETITIONS (The purpose of this portion of the agenda is to provide the Council with information necessary to craft wisepolicy. Includes items like monthly or annual reports and coniniunications f on2 other entities.) 9. BORN LEARNING TRAIL — PARK REQUEST Lynn Neumann, PRCE Director, presented before the Council. Ms. Neumann explained that Ari Zaske, community member, presented an idea to the PRCE Advisory Board to enhance Rotary Park. Ari Zaske presented before the Council. Ms. Zaske explained that her idea is to add a United Way Born Learning Trail to the parks system. The Born Learning Trail provides valuable resources for early childhood learning and offers opportunities for visibility and volunteer engagement. These are engaging, physical learning activities designed for parents/caregivers to enjoy with young children in outdoor settings such as trails, parks and schoolyards. Citizens Bank and SWIF have committed to supporting this project financially. This item will be formally approved at the next City Council meeting. 10. HUTCHINSON JUNIOR LEAGUE BASEBALL ASSOCIATION — BATTING CAGE REQUEST Lynn Neumann, PRCE Director, presented before the Council. Ms. Neumann explained that Josh CITY COUNCIL MINUTES —August 26, 2025 Vandenberg of the Hutchinson Junior League Baseball Association presented an idea to the PRCE Advisory Board to add a batting cage to Northwoods Park. Josh Vandenberg presented before the Council. Mr. Vandenberg explained that the HJLB has been actively fundraising for a batting cage. Cost of the materials and equipment will be funded by the HJLB. HJLB has requested Parks staff handle the installation of the batting cage at Northwoods Park. The PRCE Board was in favor of the project. Future formal action will be taken on this item when the full amount is raised for the batting cage equipment. 11. VMF GRANDSTAND PROJECT UPDATE — FINAL COSTS AND FUNDING Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich explained that the VMF grandstand project is complete and the state amateur baseball tournament is in progress. As a recap of the project, the actual costs totaled $680,780, exceeding the estimated project by $30,780. In turn, donations totaled $280,780 and exceeded the estimate by $30,780. The net cost to the City is $400,000 which is the maximum amount set by the City Council when the project was approved. The donation total includes $50,000 to be received in 2026. 12. DISCUSSION ON THE USE OF 429 REVENUE BONDS TO ASSIST WITH THE EXPANSION OF HOUSING WITHIN THE COMMUNITY Matt Jaunich, City Administrator, presented before the Council. Mr. Jaunich explained that staff has been approached by a developer who is interested in a housing development on property off of Golf Course Road and Montana Street. For several months, staff has been talking with the developer about doing a housing TIF to assist in the financing of the development. Recently, the developer inquired about the concept of using 429 revenue bonds in addition to a housing TIF to assist in the development costs. Staff is seeking the Council's input on whether or not this type of financial assistance would be acceptable. Mr. Jaunich noted that state law does provide cities with the authority to issue bonds for private development. The City has used this method most commonly for roadway improvement bonding and the process the developer is seeking would be similar in process. Mr. Jaunich reviewed further the two options for issuing bonds — general obligation bonds and revenue bonds. He spoke to revenue bonds being similar to conduit bonds issued by the City and how revenue bonds present more risk to the bondholder. The interest rate would probably be higher to compensate for the risk and could lead to higher lot costs in turn with the special assessments. It was relayed to staff by its bond consultant that the City's bond rating should not be affected in the event of default on bond payments as long as the City does eve thing it is obligated to as defined within the bond covenants. Mr. Jaunich outlined several conditions staf is recommending if the Council is comfortable in pursuing this financing option. Mr. Jaunich explained that if the City proceeds with 429 financing for this development, TIF funding will not be provided He further noted that the process could be started but if the developer doesn't provide the information required, it would not move forward. Mr. Jaunich stated this financing method for housing has not been utilized before by the City. The Council commented that it would be okay to get more information from the developer to study this concept more. UNFINISHED BUSINESS NEW BUSINESS 13. APPROVE/DENY FIRST READING OF ORDINANCE NO. 25-858 — AN ORDINANCE FOR THE SALE OF MUNICIPALLY -OWNED PROPERTY TO HUTCHINSON — THE LANDING, LLC Miles Seppelt, EDA Director, presented before the Council. Mr. Seppelt explained that preparations are continuing for the redevelopment of the old medical clinic site located at 126 Franklin Street North. Last Spring the City distributed a request for proposals to developers inviting them to submit ideas for redeveloping the site. CG Real Estate Partners of St. Cloud has proposed a development of an 81-unit 11 CITY COUNCIL MINUTES —August 26, 2025 market rate apartment complex on the site with construction projected to begin this Fall. The next step in this process is for the City to sell the property to the developer. The proposed purchase agreement was included in the Council packet. Motion by May, second by Czmowski, to approve first reading of Ordinance No. 25-858. Motion carried unanimously. 14. APPROVE/DENY FIRST READING OF ORDINANCE NO. 25-859 — AN ORDINANCE OF THE CITY OF HUTCHINSON VACATING THE ALLEY IN BLOCK 41, NORTH HALF HUTCHINSON Dan Jochum, Planning Director, presented before the Council. Mr. Jochum explained that with the development of the old medical center site at 126 Franklin Street, the preliminary and final plats were approved in July. The plats eliminated the alley, which is no longer needed, therefore the aiiey should be vacated. Motion by Czmowski, second by Burley, to approve first reading of Ordinance No. 25-859. Motion carried unanimously. 15. APPROVE/DENY FIRST READING OF ORDINANCE NO. 25-860 — AN ORDINANCE OF THE CITY OF HUTCHINSON VACATING THE RIGHT-OF-WAY (SANITARY SEWER) EASEMENT LOCATED AT 126 FRANKLIN STREET NW Dan Jochum, Planning Director, presented before the Council. Mr. Jochum explained that as part of The Landing project, the sanitary sewer will be rerouted as it currently runs directly through the property where the housing development is going. The plat that was approved in July has a new easement for the proposed new sanitary sewer line, therefore the current sanitary sewer easement needs to be vacated. Motion by Burley, second by Sebesta, to approve first reading of Ordinance No. 25-860. Motion carried unanimously. 16. APPROVE/DENY RESOLUTION NO. 15901 — RESOLUTION FOR THE SALE OF GENERAL OBLIGATION IMPROVEMENTS BONDS, SERIES 2025A Andy Reid, Finance Director, presented before the Council. Mr. Reid presented the 2025 pre -sale report for the issuance of general obligation bonds with a total estimated par value of $2,405,000. The bonds will fund the Dale Street and Hassan Street roadway and infrastructure improvement projects. The item tonight is to authorize moving forward with providing a bond issuance to finance the improvement costs. Upon approval, the City's financial advisor will initiate the process and will compile documents, coordinate a bond rating call and solicit competitive bids on behalf of the City. Mr. Reid reviewed the debt issuance schedule that is outlined in the pre -sale report. The bond sale will be awarded to the winning bidder at the September 23, 2025, City Council meeting. The debt will be repaid by the City's debt tax levy and special assessments levied against benefiting property owners. Motion by May, second by Sebesta, to approve Resolution No. 15901. Motion carried unanimously. GOVERNANCE (The purpose of this portion of the agenda is to deal with organizational development issues, including policies, pei orniances, and othermatters that manage the logistics of the organization. May include monitoring reports, po icy development and governance process items.) 17. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS (a) City of Hutchinson Financial Report and Investment Report for July 2025 CITY COUNCIL MINUTES —August 26, 2025 MISCELLANEOUS 18. STAFF UPDATES Mike Stifter — Mr. Stifter noted that Dale Street paving should be complete by Thursday along with striping and signage by the end of the weekend. Dale Street should be open next week. 19. COUNCIL/MAYOR UPDATE Dave Sebesta — Council Member Sebesta noted that a local organization, Parents Inspired, is working on a volunteer driver program. Interested persons can reach out to them. Gary Forcier — Mayor Forcier provided housing updates from the HRA Board. 20. CLOSED SESSION PURSUANT TO MINNESOTA STATUTE §13D.05, Subd. 3(c) TO DISCUSS PURCHASE OF REAL PROPERTIES DESCRIBED AS: SECT-04 TWP-116 RANGE-030 120.00 AC N 120 AC OF SE 1/4 SECT-04 TWP-116 RANGE-030 40.00 AC S 40 AC OF SE 1/4 SECT-09 TWP-116 RANGE-030 13.59 AC THAT PART OF NW 1/4 NE 1/4 & PART OF NE 1/4 NW 1/4 13.59 AC Motion by Burley, second by May, to convene into closed session at 6:45 p.m. Motion carried unanimously. Motion by Czmowski, second by May, to convene into open session at 7:05 p.m. Motion carried unanimously. ADJOURNMENT Motion by Czmowski, second by May, to adjourn at 7:06 p.m. Motion carried unanimously. ATTEST: Gary T. Forcier Matthew Jaunich Mayor City Administrator