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09-09-2025HUTCHINSON CITY COUNCIL MEETING MINUTES TUESDAY, SEPTEMBER 9, 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 Protein Chad Czmowski called the meeting to order. Members present were Tim Burley, Dave Sebesta, and Pat May. Member absent was Gary Forcier. 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 Sebesta, second by Burley, to approve the agenda as presented. Motion carried unanimously. 2. INVOCATION — The River 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. 15905 — Resolution Accepting $1000.00 Donation from Glen Kurth for Netting at Veterans' Memorial Field Motion by May, second by Sebesta, to approve Resolution No. 15905. 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) Strategic Planning Session of August 26, 2025 (b) Budget Workshop of August 26, 2025 (c) Regular Meeting of August 26, 2025 Motion by Burley, second by Sebesta, to approve the 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 I (a) Consideration for Approval of Resolution No. 15906 - Resolution Approving Airport Maintenance & Operations Grant Agreement with MNDOT CITY COUNCIL MINUTES Sep tembe° 9, 2025 (b) Consideration for Approval of Resolution No. 15907 — Resolution Accepting Bid and Awarding Contract Letting No. 5/Project No. 25-05 (Aircraft Hangar Repair Project) (c) Consideration for Approval of Issuing a Temporary Liquor License to the Hutchinson Chamber Foundation on September 18, 2025, at Arts Place (d) Consideration for Approval of Issuing Short -Term Gambling License to Gopher Campfire Sanctuary on December 3, 2025 (e) Affirmation of Board Reappointments 1. Steve Hahn to Airport Commission to September 2028 2. Andrew Hedin to Airport Commission to September 2028 (f) Claims, Appropriations and Contract Payments — Register A Motion by May, second by Sebesta, to approve Consent Agenda I. Motion carried unanimously. 8. APPROVAL OF CONSENT AGENDA II (a) Claims, Appropriations and Contract Payments — Register B Motion by Burley, second by May, to approve Consent Agenda IL Motion carried unanimously. PUBLIC HEARINGS — 6:00 P.M. 9. DALE STREET SW IMPROVEMENTS (Letting No. 1/Project No. 25-01) (a) Approve/Deny Resolution No. 15903 - Resolution Ordering Improvement and Preparation of Plans and Specifications Mike Stifter, Public Works Director, presented before the Council. Mr. Stifter explained that a public hearing was held on this project previously, however a 4/5 vote was required for approval of the prof ect and the project was approved with a 3/5 vote due to council member absences, therefore the hearing needs to be held again. Mr. Stifter reviewed the project which had a total cost of $1,926,966. Motion by May, second by Burley, to close public hearing. Motion carried unanimously. Motion by May, second by Burley, to approve Resolution No. 15903. Motion carried unanimously. 10. 2025 STREET IMPROVEMENTS PROJECTS (Letting No. 2/Project No. 25-02) (a) Approve/Deny Resolution No. 15904 - Resolution Ordering Improvement and Preparation of Plans and Specifications Mike Stifter, Public Works Director, presented before the Council again explaining that the public hearing held previously on this project was approved by a 3/5 vote and is required to have a 4/5 vote. Mr. Stiftter reviewed the project scope which included Hassan Street SE, 1" Avenue SE, 3rd Avenue SE, 6 h Avenue SE, 7d' Avenue SE and Stoney Point Road SW. Total project cost was $2,143,187. 2 CITY COUNCIL MINUTES Sep tember 9, 2025 Motion by May, second by Sebesta, to close public hearing. Motin carried unanimously. Motion by May, second by Burley, to approve Resolution No. 15904. Motion carried unanimously. 11. MODIFICATION TO THE DEVELOPMENT PROGRAM (DEVELOPMENT DISTRICT NO. 4) & TAX INCREMENT FINANCING (TIF) PLAN (ESTABLISHMENT OF TAX INCREMENT FINANCING DISTRICT NO.4-24, A HOUSING DISTRICT) (a) Approve/Deny Resolution No. 15908 — A Resolution Approving the Adoption of a Modification of a Development Program for Municipal Development District No. 4; Establishing Tax Increment Financing District No. 4-24 within Municipal Development District No. 4; Approving the Tax Increment Financing Plan Therefor; Authorizing an Interfund Loan for Tax Increment Financing District No. 4-24; Authorizing Execution of a Development Agreement; Approving the Elimination of a Parcel from Tax Increment Financing District No. 4-16 within Municipal Development District No. 4; and Authorizing the Forgiveness of an Interfund Loan for Tax Increment Financing District No. 4-16 Miles Seppelt, EDA Director, presented before the Council. Mr. Seppelt provided a project overview which includes an 81 market -rate apartment building located on Franklin Street along the Crow River called The Landing. The goals of redeveloping this specific site began in 2016 and included removing blight, redeveloping the site, providing needed market -rate housing and strengthening downtown. Mr. Seppelt provided further information on the project history of redevelopment of this site. Mr. Seppelt reviewed the economic impact this $20,000,000 redevelopment project will have on the downtown area and the community. Mr. Seppelt also explained the roles of the EDA and the City in getting to where we are today with this redevelopment project. Tax Increment Financing -Housing will be used to help fund the project and Mr. Seppelt provided more detail on how this funding tool is used. The City works closely with its financial advisor when utilizing tax increment financing for projects and this project specifically. Mr. Seppelt explained that approving Resolution No. 15908 includes establishing TIF District No. 4-24, approving the TIF Plan for the district, authorizing an interfund loan for the district, authorizing execution of the development agreement, removing a parcel from TIF District 4-16, and authorizing forgiveness of an interfund loan for TIF District 4-16. Mr. Seppelt thanked many staff members, EDA Finance Team, EDA Board of Directors, City Council and other city staff on the accomplishment and completion of this project. Motion by Sebesta, second by May, to close public hearing. Motion carried unanimously. Motion by May, second by Burley, to approve Resolution No. 15908. Motion carried unanimously. The developer hopes to start September 22, 2025, and the project should take approximately one year to complete. MMUNICATIONS, REQUESTS AND PETITIONS purpose of this portion of the agenda is to provide the Council with in/brniation necessary to craft wise policy. des items like monthly or annual reports and coniniunications f on2 other entities.) UNFINISHED BUSINESS CITY COUNCIL MINUTES Sep tember 9, 2025 12. APPROVE/DENY SECOND READING AND ADOPTION OF ORDINANCE NO. 25-858 — AN ORDINANCE FOR THE SALE OF MUNICIPALLY -OWNED PROPERTY TO HUTCHINSON — THE LANDING, LLC Miles Seppelt, EDA Director, explained that all municipally -owned property must be approved by ordinance. The first reading was held at the last Council meeting and this will be considered as the second reading and adoption. This sale of property is for The Landing project. Motion by Burley, second by Sebesta, to approve second reading and adoption of Ordinance No. 25-858. Motion carried unanimously. 13. APPROVE/DENY SECOND READING AND ADOPTION OF ORDINANCE NO. 25-859 — AN ORDINANCE OF THE CITY OF HUTCHINSON VACATING THE ALLEY IN BLOCK 41, NORTH HALF HUTCHINSON Motion by Burley, second by Sebesta, to approve second reading and adoption of Ordinance No. 25-859. Motion carried unanimously. 14. APPROVE/DENY SECOND READING AND ADOPTION 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 Motion by Sebesta, second by Burley, to approve second reading and adoption of Ordinance No. 25-860. Motion carried unanimously. Motion by May, second by Sebesta, to recess the meeting at 5:42 p.m. Motion carried unanimously. Motion by May, second by Burley to reconvene meeting at 6:00 p.m. Motion carried unanimously. NEW BUSINESS 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.) 15. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS a) Hutchinson Library Board Minutes from June 23, 2025 b) Planning Commission Minutes from April 15, 2025 c) Planning Commission Minutes from July 15, 2025 MISCELLANEOUS 16. STAFF UPDATES 17. COUNCIL/MAYOR UPDATE ADJOURNMENT Motion by May, second by Burley, to adjourn at 6:35 p.m. Motion carried unanimously. 11