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cp06-12-2007 c . . . AGENDA REGULAR MEETING - HUTCHINSON CITY COUNCIL TUESDAY, JUNE 12, 2007 I, CALL TO ORDER-5:30 P.M. 2. INVOCATION - Rev. Howard Anderson, Hunter's Ridge Community Church 3. PLEDGE OF ALLEGIANCE 4. PUBLIC COMMENTS 5, MINUTES (a) REGULAR MEETING OF MAY 22, 2007 Action - Motion to approve as presented 6. CONSENT AGENDA (a) REPORTS bF OFFICERS, BOARDS AND COMMISSIONS 1. HUTCHINSON HOUSING & REDEVELOPMENT AUTHORlTY BOARD MINUTES FROM APRIL 17,2007 2, HUTCHINSON AIRPORT COMMISSION MINUTES FROM MARCH 15,2007 AND APRIL 19, 2007 3. PARKS, RECREATION & COMMUNITY EDUCATION ADVISORY BOARD MINUTES FROM MARCH 5, 2007, AND APRlL 2,2007 4. HUTCHINSON PUBLIC LIBRARY BOARD MINUTES FROM MARCH 26, 2007 5. FIRE DEPARTMENT MONTHLY REPORT FOR MAY 2007 6. BUILDING DEPARTMENT MONTHLY REPORT FOR MAY 2007 (b) RESOLUTIONS AND ORDINANCES 1. RESOLUTION NO. 13221 - RESOLUTION IN SUPPORT OF A 2007 SPECIAL LEGISLATIVE SESSION TO CONSIDER THE OMNIBUS TAX BILL 2. RESOLUTION NO. 13222 - RESOLUTION FOR PURCHASE (CUSTOM PLAY STRUCTURE) 3. RESOLUTION NO, 13223 - RESOLUTION SUPPORTING THE EFFORTS OF THE CITY OF GLENCOE IN THEIR A TIEMPT FOR INCLUSION OF THE NPIAS FOR THE EXPANSION OF VERNON PERSCHAU FIELD TO REGIONAL AIRPORT STATUS 4, ORDINANCE NO. 07-0463 -AN ORDINANCE ADDING LANGUAGE TO THE WIND ENERGY CONVERSION SYSTEM (SECOND READING AND ADOPTION) AND APPROVAL TO PUBLISH SUMMARY ORDINANCE (c) CONSIDERATION FOR APPROVAL OF SHORT-TERM GAMBLING LICENSE ON SEPTEMBER 15, 2007, FOR HUTCHINSON FIRE DEPARTMENT RELIEF ASSOCIATION (d) CONSIDERATION FOR APPROVAL OF IMPROVEMENT PROJECT CHANGE ORDER NO.3, CITY COUNCIL AGENDA - JUNE 12, 2007 LETTING NO, 12, PROJECT NO. 06-14 (WASTEWATER ADMINISTRATION BUILDING . EXPANSION) (e) CONSIDERATION FOR APPROVAL OF EASEMENTS FOR MONTANA STREET NW EXTENSION PROJECT-LETTING NO. lAlPROJECTNO. 06-01A (f) CONSIDERATION FOR APPROVAL OF TRANSIENT MERCHANT LICENSE FOR JA Y MALONE MOTORS IN THE HUTCHINSON MALL PARKING LOT FROM JULY 23 - SEPTEMBER 29,2007 Action - Motion to approve consent agenda 7, PUBLIC HEARINGS - 6:00 P.M. (a) CONSIDERATION FOR APPROVAL OF ITEMS FOR 2007 PAVEMENT REHABILITATION PROGRAM - LETTING NO.5, PROJECT NO. 07-05 (ADOPTING ASSESSMENT ROLL, ACCEPTING BID AND AWARDING CONTRACT) Action - Motion to reject - Motion to approve (b) CONSIDERATION FOR APPROVAL OF PROPOSAL OF THE CITY OF HUTCHINSON TO ENLARGE DEVELOPMENT DISTRICT NO, 4 AND ADOPT A MODIFICATION OF THE DEVELOPMENT PROGRAM THEREFORE, ESTABLISH TAX INCREMENT FINANCING DISTRICT NO. 04-15 (AN ECONOMIC DEVELOPMENT TAX INCREMENT FINANCING DISTRICT) THEREIN, AND ADOPT A TAX INCREMENT FINANCING PLAN FOR SAID DISTRICT 'Action - Motion to reject - Motion to approve . COMMUNICATIONS. REQUESTS AND PETITIONS (a) DISCUSSION OF FIRST AVENUE SE CLOSURE DURING FARMERS' MARKET AND OTHER EVENTS-BRYCEGRUNDAHL Action - (b) PRESENTATION BY LOCAL SALES TAX REVIEW COMMITTEE No action. (c) DISCUSSION OF CITY-WIDE LIGHT TRAFFIC PLAN DEVELOPMENT Action - (d) REVIEW OF SEH GENERAL ENGINEERlNGIPUBLIC WORKS SUPPORT SERVICES Action - 9. UNFINISHED BUSINESS 10. NEW BUSINESS (a) CONSIDERATION FOR APPROVAL OF UNIFORM DATE FOR EMPLOYEE PERFORMANCE INCREASE IMPLEMENTATION FOR 2008 AND CONSIDERATION OF AMENDMENT TO CITY POLICY NO, 3,08 . 2 C1TYCOUNCILAGENDA -JUNE 12,2007 Action - Motion to reject - Motion to approve .(b) CONSIDERATION FOR APPROVAL OF RESOLUTION FINDING BUILDINGS STRUCTURALLY SUBSTANDARD (CENEX PROJECT) AND THEREFORE QUALIFY FOR DESIGNATION AS A REDEVELOPMENT TAX INCREMENT FINANCING DISTRICT Action - Motion to reject - Motion to approve 11. MISCELLANEOUS (a) COMMUNICATIONS 12. CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS 13. ADJOURN . . 3 MINUTES REGULAR MEETING - HUTCHINSON CITY COUNCIL TUESDAY, MAY 22, 2007 . CALL TO ORDER - 5:30 P.M. Mayor Steve Cook called the meeting to order. Members present were Bill Arndt, Jim Haugen, and Casey Stotts. Member absent was Kay Peterson. Others present were Gary Plotz, City Administrator, Kent Exner, City Engineer, and Marc Sebora, CIty Attorney. 2. INVOCATION - Rev. Gerhard Bode, Peace Lutheran Church, delivered the invocation. . . 3. PLEDGE OF ALLEGIANCE 4. PUBLIC COMMENTS 5. MINUTES (a) REGULAR MEETING OF MAY 9, 2007 Mayor Cook noted that Item 6(b) 1 should be revised to state that the hope of the HUC is that natural gas will be purchased at a reduced cost and the MMUA would monitor, not the MPUC. Motion by Arndt, second by Haugen, to approve the minutes as presented with the correction noted above. Motion carried unanimously. 6. CONSENT AGENDA (a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS 1. BUILDING DEPARTMENT MONTHLY REPORT FOR APRIL 2007 2. PLANNING COMMISSION MINUTES OF APRIL 17,2007 3. CITY OF HUTCHINSON FINANCIAL REPORT FOR APRIL 2007 4. CITY OF HUTCHINSON INVESTMENT REPORT FOR 2007 (b) RESOLUTIONS AND ORDINANCES 1. RESOLUTION NO. 13214 - RESOLUTION FOR PURCHASE (LIFT STATION CONTROL PANEL AND UNLEADED FUEL) 2. RESOLUTION NO. 13215 - RESOLUTION RELEASING AND ACCEPTING PLEDGED SECURITIES FOR COLLATERAL FROM HOME STATE BANK (c) PLANNING COMMISSION ITEMS 1. CONSIDERATION FOR APPROVAL OF A VARIANCE TO REDUCE CORNER SIDE AND FRONT SETBACKS FOR ADDITION TO HOUSE LOCATED AT 447 ERIE STREET SE WITH FAVORABLE PLANNING COMMISSION RECOMMENDATION (ADOPT RESOLUTION NO. 13195) 2. CONSIDERATION FOR APPROV AL OF A VARIANCE TO REDUCE CORNER SIDE SETBACK FOR REPLACEMENT OF GARAGE AND EXISTING PORCH LOCATED AT 447 HURON STREET SE WITH FAVORABLE PLANNING COMMISSION RECOMMENDATION (ADOPT RESOLUTION NO. 13196) 3. CONSIDERATION FOR APPROVAL OF CONDITIONAL USE PERMIT TO AMEND THE PLANNED DEVELOPMENT DISTRICT AND SEVEN LOT SPLITS LOCATED IN KOTTKE COURT SUBMITTED BY HAGEN BUILDERS WITH FAVORABLE PLANNING COMMISSION RECOMMENDATION (ADOPT RESOLUTION NO. 13197 THROUGH 13204) s (CA) . CITY COUNCIL MINUTES - MAY 22, 2007 4. CONSIDERATION FOR APPROVAL OF SUBDIVISION AGREEMENT AND FINAL PLAT TO BE KNOWN AS EXCELSIOR ADDITION SUBMITTED BY JEFF MUNSELL WITH FAVORABLE PLANNING COMMISSION RECOMMEND A TION (ADOPT RESOLUTION NO, 13205) 5. CONSIDERATION FOR APPROVAL OF SITE PLAN FOR FARMERS' MARKET PAVILION WITH FAVORABLE PLANNING COMMISSION RECOMMENDATION (ADOPT RESOLUTION NO. 13206) (d) CONSIDERATION FOR APPROVAL OF AWARDING BID FOR BURICH ARENA COOLING TOWER (e) CONSIDERATION FOR APPROVAL OF MNIDOT ADVANCED CONSTRUCTION AGREEMENT FOR SCHOOL ROAD PEDESTRIAN UNDERPASS (LETTING NO.1, PROJECT NO. 07-01) (f) CONSIDERATION FOR APPROVAL OF ITEMS FOR 2007 PAVEMENT REHABILITATION PROGRAM (LETTING NO.5, PROJECT NO. 07-05) (g) APPOINTMENT TO POLICE COMMISSION (h) CONSIDERATION FOR APPROVAL OF PREMISES PERMIT RENEWAL FOR LAWFUL GAMBLING LOCATED AT VFW POST 906 (i) CONSIDERATION FOR APPROVAL OF PROCEDURAL GUIDELINES FOR HOMEOWNER HOUSING REHABILITATION PROGRAM FOR EXPANDED FRANKLIN GROVE NEIGHBORHOOD AND PROCEDURAL GUIDELINES FOR HOUSING REHABILITATION REVOLVING LOAN FUND AND AMENDMENT TO CITY IHRA ADMINISTRATIVE CONTRACT . U) CONSIDERATION FOR APPROVAL OF PUBLIC DANCE PERMIT AND SHORT-TERM 3.2 MALT LIQUOR LICENSE FOR HUTCHINSON JAYCEES ON JUNE 15,2007 (k) CONSIDERATION FOR APPROVAL OF PURCHASE OF AMBULANCE AS REQUESTED BY HUTCHINSON AREA HEALTH CARE (1) CONSIDERATION FOR APPROVAL OF PARADE PEDDLER'S PERMIT FOR GERALD JOHNSON ON JUNE 17,2007 (m)CONSIDERA TION FOR APPROVAL OF AUTHORIZING CREEKSIDE COMPOST FACILITY TO PROVIDE SERVICES FOR COMPOSTING AND RECYCLING AT THE 2007 MCLEOD COUNTY FAIR Items 6(c)I, 6(c)2, 6(c)5, 6(f), 6(g) and (6k) were pulled for separate action. Motion by Stotts, second by Arndt, to approve consent agenda with the exception ofthe items noted above. Motion carried unanimously. Item 6( c) 1 and 6( c)2 had further discussion. Mayor Cook noted that revised Resolutions were handed out related to these items. . Motion by Cook, second by Stotts, to approve Items 6(c)1 and 6(c)2. Motion carried unanimously. Item 6( c)5 had further discussion. Mayor Cook noted that he has a hard time seeing this project being a good use of money. He suggested moving the farmers' tents to the parking lot area instead of building a pavilion. Mayor Cook suggested using these funds for downtown housing, river development, townhouse development on Hwy 7 or using the money for store frontage on Main Street. 2 5(u0 CITY COUNCIL MINUTES - MAY 22, 2007 . . Miles Se)lpelt, EDA Director, presented before the Council. Mr. Seppelt explained that what has come forward IS a preliminary design of the pavilion with the EDA Board directing staff to seek bids on the construction. The total project cost is estimated at $200,000. However, several alternates are anticipated to be negotiable in order to lower the cost. The EDA Board hopes to keep the project under $175,000. Mr. Seppelt also talked about other methods to reduce the cost of the project. The EDA Board will vote on Fnday as to whether or not to move forward with the project. The action being requested tonight is to approve the site plan only. Mayor Cook noted that he is okay with approving the site plan, however he wants the final approval of the project to come to the Council for action. Motion by' Cook, second by Stotts, to approve Item 6( c)5 with the contingency that final approval of the project w1l1 come to Council for action. Motion carried unanimously. Item 6(f) had further discussion. Mayor Cook noted that at the last public hearing, Dr, Caspers had concerns related to paving of the alley. Kent Exner, City Engineer, noted that he has spoken with Dr. Caspers, as well as the other property owners along the alley, and a separate quote will be obtained before work proceeds on the alleys. Motion by Cook, second by Stotts, to approve Item 6(f). Motion carried unanimously. Item 6(g) had further action. Mayor Cook noted that Tom Schwartz will be reappointed to a second term serving to May 20 I O. Motion by Cook, second by Arndt, to ratify the appointment of Tom Schwartz. Motion carried unanimously. Item 6(k) had further discussion. Mayor Cook noted that the Hospital Auxiliary donated the entire amount of the purchase of the ambulance, which totaled approximately $150,000. Motion by Stotts, second by Arndt, to approve Item 6(k). Motion carried unanimously. Miles Seppelt, EDA Director, presented before the Council. Mr. Seppelt explained that at the last Council meeting, Mr. Seppelt had asked for approval to apply for a grant to aid in bringing in a new company to Hutchinson, Customer Elation. Mr. Seppelt expects to hear the results of whether or not the grant will be received by the City tomorrow. Mr. Seppelt asked for permission from the Council to move forward with hiring an architect to construct plans of the company, should the EDA receive the grant. Motion by Cook, second by Arndt, to approve obtaining architectural plans for Customer Elation, contingent on the reception of a grant in the amount of $500,000. Motion carried unanimously. 7. PUBLIC HEARINGS - 6:00 P.M. . (a) CONSIDERATION FOR APPROV AL OF ISSUING ON-SALE INTOXICATING & SUNDAY LIQUOR LICENSE TO AMERICAN PASTIME BARBEQUE AND SPORTS TAVERN, LLC, TO BE LOCATED IN CORNERSTONE COMMONS Motion by Haugen, second by Arndt, to close the public hearing. Motion by Haugen, second by Arndt, to approve an on-sale intoxicating and Sunday liquor license to American Pastime Barbeque and Sports Tavern, LLC. Motion carried unanimously. (b) REVIEW AND COMMENTS ON HOSPITAL PRIV A TlZA TION PROCESS Mayor Cook noted that last Thursday a town hall meeting was held on this topic. He noted that HCVN did tape the meeting and he encouraged those interested to watch a copy of the meeting. Motion by Arndt, second by Haugen, to close public hearing. Motion carried unanimously. 3 SC~) CITY COUNCIL MINUTES - MAY 22. 2007 . Mayor Cook noted that the committee that has been working on this topic has exerted a great amount of time to the project. Mayor Cook also commended special counsel, Paul Torgerson, who brought forth new, creative ideas related to membership and local control. Mayor Cook reviewed some questions that he had received from a citizen in relation to this process. 8. COMMUNICATIONS, REQUESTS AND PETITIONS (a) PUBLIC ARTS COMMISSION UPDATE . . Tom Wirt, member of the Public Arts Commission, presented before the Council. Mr. Wirt noted that approximately one year ago the Council adopted an ordinance establishing a "temporary" Public Arts Commission. The ordinance outlined duties that the Commission was expected to complete within 18 months. The Commission has drafted a public arts policies and procedures document. Mr. Wirt briefly reviewed the items that are contained in the document. The next steps that have been identified are to create an ordinance establishing a permanent Public Arts Commission which will detail the composition of the Commission. Some final details need to be completed in the policies and procedures document. The hope is to have a formal ordinance establishing the permanent Commission presented within a month or so. (b) UPDATE ON CREEKSIDE COMPOST FACILITY Doug Johnson, Creekside Coordinator, presented before the Council. Mr. Johnson noted that last week, WCCO Channel 4 ran a clip on Creekside. He shared the video with the Council. Mr. Johnson then reviewed the mission statement of Creekside. Mr. Johnson reviewed the direct community savings as part of having a compost facility, which are approximately $114,000 - $172,000. Some of the operational reductions that Creekside has put in place include the reduction of seasonal employees, return of leased semi-tractors, site operating hours, employee over time, screener rentals, loader rentals, walking floor trailer rentals, contract repairs and bagging crew. Some of the forecasted operational changes include the handling of the Minneapohs dirty raw materials, the utilization of out-state truck brokers for bagged product, installation of manufacturing software, just-in-time inventory of bagged product and changing the bagged product recipes. Some of the raw material opportunities the facility is considering are acquiring finished compost rather than dirty raw material, educatmg Hutchinson citizens of proper material dIsposal in ween containers and quoting tip fees for clean raw materials rather than dirty. Some of the items the adVISOry board is working on mclude the strategic planning, manufacturing software reports and business plan scenarios. Mr. Johnson commented that a loss will be shown for 2006 as far as profitability. Mayor Cook noted that several of the items that are included in the loss are part of positioning the business in the best model to move forward. Gary Plotz, City Administrator, also noted that a large part of the number incorporated into the loss is depreciation. From a cash flow standpoint, the facility is doing very well. Mal.'or Cook asked if the Council would like to have a workshop to discuss the Council's expectations of the facllity, including short-term and long-term goals. Motion by Stotts, second by Haugen, to set July 10, 2007, at 4:00 p.m. as a Council workshop-to discuss the expectations of Creekside. Motion carried unanimously. The Compost Advisory Board WIll be invited to attend this workshop. 9. UNFINISHED BUSINESS (a) CONSIDERATION FOR APPROVAL OF ORDINANCE NO. 07-0463 - AN ORDINANCE ADDING LANGUAGE TO THE WIND ENERGY CONVERSION SYSTEM (W AlVE FIRST READING AND SET SECOND READING AND ADOPTION FOR JUNE 12,2007) Rebecca Bowers, PlanninglZoninglBuilding Director, presented before the Council. Ms. Bowers noted that some of the changes made to the ordinance from what was originally presented include changes to address shadow flicker, insurance and right of entry. In addition the procedures to require a conditional use permit for all zoning districts that allow wind energy conversion systems was revised. Discussion was held in regard to concerns surrounding allowing wind energy conversion systems in residential areas as well as to the finish of the material. It was noted that the ordinance will be revised to include that all wind turbines shall meet the color and finish standards, as opposed to only commercial wind turbines as now presented. 4 5(C0 CITY COUNCIL MINUTES -lvfA Y 22, 2007 Motion by Cook, second by Stotts, to make the revision noted above and to waive first reading and set second reading and adoption of Ordinance No. 07-0463 for June 12,2007. Motion carried unanimously. . (b) CONSIDERATION FOR APPROVAL OF AWARDING CONTRACT FOR WASTEWATER TREATMENT FACILITY IMPROVEMENTS - LETTING NO.4, PROJECT NO. 07-04 Kent Exner, City Engineer, noted that the City has secured the NPDES discharge permit, as well as the approval of the PF A loan, The two conditions that were previously attached to this action can now be removed. Jim Hagley, Donohue & Associates, presented before the Council. Mr. Hagley reviewed the status of the wastewater treatment plant improvements. Mr. Hagley reviewed a history ofthe plant as well as the existing and future design parameters. He then reviewed the recommended plan, which includes a membrane bioreactor. This includes an activated sludge process and ultrafiltratIOn membranes, Mr. Hagley then reviewed how the processing works. The low bidder on the project was received from John T. Jones Construction in the amount of$lI.I million. Mr. Hagley recommended awarding the bid to John T. Jones Construction as the bid price is excellent and Jones' references were very good. This project is necessary due to the current plant being at capacity and there is continued planned growth for the City and industries, as well as new NPDES permit with new limits and a possible phosphorus grant is available. Motion by Stotts, second by Arndt, to approve awarding contract for wastewater treatment facility improvements to John T. Jones Construction. Motion carried unanimously. 10. NEW BUSINESS (a) CONSIDERATION FOR APPROVAL OF ITEMS REGARDING HUTCHINSON DAM REPLACEMENT PROJECT (LETTING NO.2, PROJECT NO. 07-02) . Kent Exner, City Engineer, presented before the Council. Mr. Exner informed the Council that staff is completing the final design ofthe dam, as well as going through the [mal permitting processes. Mr. Exner is requesting that the Council approve the plans/specifications and advertising for bids so that the project can be advertised and ultimately let as soon as possible. This will hopefully allow the City some benefit from a longer bidding period while still maintaining the possibility of starting the project this fall. Details of the project were reviewed and discussed. An Open House will be held this Thursday night from 5:00 - 7:00 p.m. in the Council Chambers. Presentations will be made at 5:30 p.m. and 6:30 p.m. Motion by Stotts, second by Haugen, to approve items regarding Hutchinson Dam Replacement project. Motion carried unanimously. (b) DISCUSSION ON SKY DIVE HUTCHINSON PROPERTY John Olson, Public Works Manager, presented before the Council. First, Mr. Olson spoke about the fountain that is housed in the Crow River. Mr. Olson commented that the cable for the fountain was stolen last fall. After reviewing the replacement of the cable, as well as maintenance costs, it was decided to wait with replacing the fountain until the final design of the dam replacement is complete. Mr. Olson noted that the property next to the airport that used to be owned by Sky Dive Hutchinson is on the market and remains for sale. Because the property line from Sky Dive Hutchinson to the airport is in such close proximity, the Airport Commission wanted to share with the Council their feelings on the use of the property. The Airport Commission strongly feels that the use of this property should be aviation-related. If a future business would not be aviation-related, then certain conditions would have to be placed on it. . (c) DISCUSSION OF 2008 BUDGET PARAMETERS Ken Merrill, Finance Director, presented before the Council. Mr. Merrill reviewed the 2008 budget 5 s eel) CITY COUNCIL MINUTES - MA Y 22, 2007 . parameters that have been identified by the Council. These include having an increase of 3.26% in the general fund budget, which would include a 3% increase in general fund taxes. The increase includes a full- time Park employee to be added in 4 quarter 2007, street department reorganization, street maintenance dollar shift from bonding, a contingency fund of$56,000 and includes the subtraction of the EDA levy in the amount of$I40,000. In addition the improvement bonds will increase 10.6% with no increase in the general obli~ation bonds. This scenario will realize a total levy increase of 4.89%. Another scenario that includes a 5% mcrease in 2006 bond plan improvement bonds which will realize a total levy increase of3.4%. With these parameters in place, City directors have to make up a shortfall of $224,708. (d) CONSIDERATION OF APPOINTMENT OF INTERIM COUNCIL REPRESENTATIVE TO HUTCHINSON HEALTH CARE Mayor Cook noted that Council Member Kay Peterson is the current Council representative to the Hutchinson Area Health Care Board. Because of the hospital privatization process, and due to Council Member Peterson's health condition, it has been suggested to appoint an intenm Council representative to the hospital board until Kay can return. Casey Stotts volunteered to serve as the interim representative. Motion by Cook, second by Haugen, to appoint Council Member Casey Stotts as the interim representative to the hospital board. Motion carried unanimously. Motion by Haugen, second by Stotts, to appoint Bill Arndt as the interim representative to the Safety Council until Council Member Peterson can return. Motion carried unanimously. 11. MISCELLANEOUS (a) COMMUNICATIONS Marc Sebora - City Attorney Sebora presented a brief presentation on the smoke-free workplace ordinance that goes into effect on June 1,2007. It was noted that the mandatory signage is available at the City Center . for workplaces to pick up. Rebecca Bowers - Ms. Bowers invited the Council and the public to attend the Hwy 7 Corridor Study Open House which will be held June 6, 2007, from 6:00 - 8:00 p.m. at the Event Center. Motion by Cook, second by Haugen, to set the above-mentioned open house as a public meeting. Motion carried unanimously. Bill Arndt - Council Member Arndt noted that he had received concerns related to a business owner that had received a citation for cutting into a utility line. City Attorney Marc Sebora noted that several years ago, the Council had adopted an ordinance that held individuals responsible for cutting into utility lines. These crimes are punishable as misdemeanors. Mayor Cook - Mayor Cook noted that he had received a telephone call from a motel owner with some concerns that he had over the smoke-free workplace ordinance. Mayor Cook noted that he contacted the motel owners in town to talk about their concerns. A couple owners had no concerns and some of the owners had much concern. Mayor Cook asked if the Council Members wanted to consider revising the ordinance to exempt hotels/motels. Council Member Stotts stated that ifhotels/motels were exempt it would be going against the original intent of the ordinance and he suggested that the ordinance stay in place as written. . Mayor Cook also noted that the Council has been considering variations to the dispatch operations. Mayor Cook suggested putting a committee together to review operations and research alternative possibilities and cost savmgs. He suggested that he, Council Member Stotts, Dan Hatten, Gary Plotz and a few other representatives serve on the committee. Council Member Arndt noted that people have contacted him and voiced that Hutchinson has already gone down this road and they want things to continue to operate as they are today. Motion by Cook, second by Stotts, to establish a committee to review the dispatch operations noting the members as stated above. Roll call vote was taken: Haugen - aye; Amdt - nay; Cook - aye; Stotts - aye; Motion carried 3 to 1. 6 sC cA) CITY COUNCIL MINUTES - MA Y 22, 2007 . Mayor Cook noted that he and other representatives attended the legislature last week to talk about the Transportation Bill. During the day, he and Glencoe Mayor Randy Wilson began to talk about some joint ventures, such as renewable energy projects, airport ventures, shared resources, etc. A meeting may be scheduled amongst Hutchinson, Glencoe and County Commissioners. Gary Plotz - Mr. Plotz noted that Mcleod County is sponsoring a community clean-up on June 2, 2007, at the Fairgrounds. Mr. Plotz informed the Council and the public that they should watch in the local newspaper for more information. Kent Exner - Mr. Exner updated the Council on the Hwy 7 project. The School Road intersection to Shady Ridge Road is proposed to begin on May 31 with School Road remaining open until the end of the school year, with the intersection closing on June 11. 12. CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS Motion by Arndt, second by Stotts, to pay claims, appropriations and contract payments. Motion carried unanimously. 13. ADJOURN . . Motion by Arndt, second by Stotts, to adjourn at 8:35 p.m. Motion carried unanimously. 7 5 CCI ') . ~..fl5I.rt~Sl~ Hutchinson Housing & Redevelopment Authority Regular Board Meeting Tuesday, April 17, 2007,7:00 AM Minutes 1. CALL TO ORDER: Chairman Casey Stotts called the meeting to order. Members Present: Becky Felling, LaVonne Hansen, Joel Kraft, and Ruth Kimball. Staff Present: Jean Ward and Judy Flemming. 2. MINUTES OF THE HRA BOARD MEETING ON MARCH 20, 2007 Joel Kraft moved to approve the Minutes as written. LaVonne Hansen seconded and the motion carried unanimously. 3. FINANCIAL REPORTS Joel Kraft moved to approve the Financials Reports. La V onne Hansen seconded and the motion carried unanimously. 4. UPDATE ON THE SCHOOL CONSTRUCTION HOUSE Diane Sorensen of Coldwell Banker, Advantage updated the Board on what has been done for marketing and the comments from the 6 shO\'1ings. Diane also updated the Board on the housing market. . 5. PARK TOWERS a. The facility assessment presentation by Mark Opdahl of the Center for Energy and Environment analysis will be rescheduled. b. Jean Ward reviewed with the Board the Vacant Unit Turnaround Time Report. c. Jean Ward reviewed with the Board the Elevator proposal to install lunar key holes and escutcheon locks on the elevator openings. Becky Felling moved to approve the proposal from MEI. Ruth Kimball seconded and the motion carried unanimously. 6. FRANKLIN GROVE EXPANDED REHAB PROJECT UPDATE Jean Ward updated the Board on the DEED program implementation meeting held last week in Mankato. La V onne Hansen moved to approve Resolution #07-04 Approving and Agreeing to Enter into Administrative Contract of SCDP for the Franklin Grove Neighborhood Housing Rehabilitation Project for Low and Moderate Income Households to Rehabilitate Their Homes. Becky Felling seconded and the motion carried unanimously. 7. COMMUNICATIONS Chairman Casey Stotts updated with the Board on the process that the City Council is going tluough for "Budgeting for Outcomes". 8. ADJOURNMENT La V onne Hansen moved to adjourn. Ruth Kimball seconded. There being no other business, Chairman Casey Stotts declared the meeting adjourned. . Recorded by Jean Ward, HRA Executive Director ~61-f UA.= Be, y Felling, Sjcretary/Treasurer April ]7, 2007 Minutes Page] of! Lc(CA) \ . . . +HUTCHINSON AIRPORT COMMISSION March 15,2007 5:30 p.m. Airport ArrivalfDeparture Building Minutes Members present: Chuck Brill, Doug McGraw, Dick Freeman, Joel Schwarze Members absent: Dave Skaar Others Present: John Olson, City of Hutchinson; Tom Parker, Hutchinson Aviation; Brent Reiner, tenant; Daryl Luthens, tenant; Shane Luthens, tenant. Meeting called to order at 5:40 p.m. There was a quorum of members present. 1. ADDrove Minutes of February 15 meetinl! Motion made by Schwarze, second by Freeman to approve minutes. Unanimous approval. 2. Review Priority order for Hanl!sr Tenants I) Review minutes of February 15 for fmal decision regarding potential corrections. There had been a polential discrepancy in dates assigned to tenants identified during the February meeting. City staff and Airport Commissioners used the time between the February and March meetings to investigate the potential discrepancy. At the February meeting, Commissioners also requesled that Skyview Dairy provide documentation they had regarding the potential discrepancy. 2) Commissioners reviewed documentation provided by Skyview Dairy, consisting ofa check to Jerry Jensen and an application to the waiting list dated in 1996. 3) Motion by Schwarze, second by Freeman to defer action on any correction until Shane Luthens of Skyview Dairy could arrive at the meeting. Unanimous approval. Discussion on the matter continued after Shane Luthens arrived. Discussion related to whether there had been a break in tenancy after co- tenancy with Jensen. Commissioners decided that there had indeed been a break, which should have reset the dale to a later date than the list prepared on January 18 indicated. 4) Motion by Schwarze, second by Freeman to approve January] 8 list with modifications as foIlows: Change the date for Skyview Dairy from July 1,2000 to June 1,2006. Motion passed (Brill-aye; Schwarze-aye; Freeman-aye; McGraw-abstain). 5) Doug McGraw pointed out that the hangar current identified as M'Cloud Aviation does not contain an aircraft registered to that entity. However, since Commissioners were not sure whether Ed Klima had acquired that flying club name when the aircraft was purchased, City staff was directed to contact Mr. Klima to clarify the situation. Airport Commission Minutes March 15,2007 te( t1)2- . . . Page 2 J.:. Review Hane:ar Asshmments UDOD Comoletion of Hanear #4 I) Based on the change to the priority order for hangar tenants, Brent Reiner was assigned to Hangar 4-8 and Shane Luthens was assigned to Hangar 3-7. 2) Upon presenting his request for Hangar 4-8, Charles Brill appointed Schwarze as Ihe acting Chair, and excused himself from the Commission to allow discussion regarding his request. 3) After discussion, Commissioners decided that the January 18 list was altered, and since Brill had nol made his requesl at the January meeting, it would not be appropriate to allow him to use a March request 10 update to a hangar that would not have been available in January, had the correction to Skyview Dairy's date been made at that time. 4) A motion was made by Freeman, second by McGraw to deny Brill's request for Hangar 4-8. Unanimous approval. Upon completion of this action, Brill returned to his duties as acting Chair. ~ Ooerational Issues I) Amateur Radio Club is proposing an emergency communications exercise at the airport on June 23 and 24,2007. 2) Olson updated Commissioners on status of the 2006 Improvement Project. A certificate of Substantial Completion will be issued 10 Midland Bi-fold Doors for the hangar. Lights meeting specifications have been identified and approved for the 2005 Improvement Project. ~ Other Discussions I) City staff was directed to consider whether sump pumps could be installed in Hangars 3-6 and 3-7. Staff will investigate and report to the Commission in April. 2) TKDA will be contacted to identify the scope of a project to extend apron and/or taxi lane for potential new private development. New Business 1) Commissioners considered a proposal by Steve Barton to operate a private skydiving club at the airport. 2) Commissioners identified several issues, chief among them having Mr. Barton identify a potential landing zone on the airport. Space is somewhat limited, considering acreage under tillage. Also, Commissioners requesled that Mr. Barton be made aware of he Ii copIer traffic at the airport and that he address that concern when he identifies a proposed landing zone. 3) City staff was directed to provide Mr. Barton a copy oflhe waivers that Skydive Hutchinson was required to use. At 7:30, a motion to adjourn was made by Schwarze, second by Freeman. Unanimous approval. NEXT MEETING: Regularly scheduled for April 19,2007 CO(CI )2- . . . +HUTCHlNSON AIRPORT COMMISSION April 192007 5:30 p.m. Airport Arriva\!Departure Building Minutes Members present: Dave Skaar, Chuck Brill, Doug McGraw, Dick Freeman Members absent: Joel Schwarze Others Present: John Olson, City of Hutchinson; Tom Parker, Hutchinson Aviation; Steve Barton, Skydiving enthusiast; Shane Luthens, tenant; Julie Neubarth, tenanl Meeting called to order al 5 :34 p.m. There was a quorum of members present. I. Annrove Minutes of March 15 meetine Motion made by Brill, second by Freeman to approve minutes. Unanimous approval. 2. Steve Barton - Skvdivine The Commission had a discussion with Mr. Barton regarding establishment of a drop zone for private, occasional skydiving at the airport. Any skydiving originating or ending at the airport will require a waiver that is approved by the City Attorney and be signed by all jumpers. Motion made by Brill, second by McGraw 10 designate the grassy area east of the arrivalldeparture building as a drop zone, with all jumps subject to signed waivers approved by the City Attorney. Unanimous approval. 3. Review Updated Hanear Assi~nments Commissioners reviewed two hangar proposals. First, a request was made by Tri-Pacer (II) 10 move from Hangar #1-12 to Hangar #1-]8 and second, a request was made by Jeff Lux and Chuck Brill to swap hangars. Chuck Brill would move 10 Hangar #4-6 and Jeff Lux would move to Hangar #2-5. Commissioners also reviewed the latesl maps and updates, current as of April 19, 2007. Discussion was held regarding Hangar #3-8, which is registered in the name ofM'Cloud Aviation, but the aircraft is registered in Ed Klima's name. Parker indicated the airplane is for sale and will likely be moved out of the hangar for the summer months and may not come back. Discussion about Hangar #3-8 was tabled until the next meeting to allow time for conversations with Mr. Klima regarding his involvement in M'Cloud Aviation and his plans for the aircraft and hangar in the near future. Motion made by McGraw, second by Freeman to approve movement ofTri-Pacer (II) from Hangar #1-12 Hangar #1-18; and to approve movement of Jeff Lux from Hangar #4-6 to Hangar #2-5; and to approve movement of Chuck Brill from Hangar #2-5 to Hangar #4-6. Skaar - aye: McGraw - aye; Freeman - aye; Brill- abstain. Motion approved. Hutchinson Airport Commission Minutes April 19, 2007 Page 2 Lo(o.)L . . . 4. ODe rational Issues 2005 Airport Improvements - Electrical Upgrades Olson informed Commissioners that TKDA has reviewed/approved shop drawings from Quade's Inc. for the REIL strobe lights. They will be installed when they become available. 2006 Airport Improvements - T -hangar Construction Olson informed Commissioners that small punch list items remain on the hangar. Work expected to be done when weather is fit for painting. 2007 Airport Improvements - Airport Layout Plan The existing airport layout plan is almost 20 years old. Photos included in the current ALP are almost 30 years old, so it is time to update the ALP, which is used by FAA to assess our requests for airport improvements. Olson informed Commissioners that an Airport Layout plan consists of an Inventory of existing assets, as well as planning for additional development, including additional private general aviation hangar lots. We also intend to identify all property owners in Zones A, B & C so that information can be forwarded to the City, township and County for zoning purposes. FA has approved the layout plan process, but funding has not yet been appropriated by the Federal Government. Estimated cost is around $25,000 to $35,000. Olson will inform Commissioners of the proposed contract from TKDA. Airport Zoning & Planning Manual Olson reported that MnlDOT Aeronautics has issued a new planning document, along with model ordinance language. City staff will be reviewing current processes and updaling existing zoning language as needed. 5. Other Discussions/ New Business Olson reported there are changes expected in airport funding for the future. It is expected that Airport capital funding will go from 95% back to 90% FAA costs. Also, an airport our size, with between 10 and 49 based aircraft, will likely have its entitlement reduced ITom $150,000 per year to $100,000 per year. Discussions were held about a number of items for airport maintenance, including: a) Turn lane off Highway 15 has not been striped properly. b) Insulation on the bi-fold door ofFBO shop needs repair. c) Tie~downs in Building #1 should be looked at. Some of them may need to be lowered. d) Some investigation of the subgrade of building #3 will be done to see if water is being trapped under tbe building. e) It was reported there was water coming up through the apron, staff will investigate. f) Tenants requested centerlines be painted for the new hangar. g) Life Link III should be reminded of their obligation to install a concrete pad, with electrical connections by the due date. h) The Avgas hose is deteriorated and Conunissioners asked that staff investigate the cost/feasibility of installing a hose reel. At 6:30, a motion to adjourn was made by Freeman, second by McGraw. Unanimous approval. NEXT MEETING: May 17,2007 at 5:30 in the airport conference room. Co ( C~ )2- . . . MINUTES Parks, Recreation & Community Education Advisory Board March 5, 2007 Members present were: Bill Arndt, Keith Kamrath, Mike Retterath, Mike Cannon, Beth Hepola, Deane Dietel and Lora Muilenburg. Also present were DolfMoon, September Jacobsen, Sharon Armstrong, Marv Haugen and Karen McKay. The meeting was called to order at 5: 15 pm. A motion was made by Bill Arndt and seconded by Mike Retterath to approve the minutes dated February 5, 2007. The board unanimously agreed. OLD BUSINESS Result Statement From Focus Groups - Dolf distributed a copy of the Result Statement From Focus Groups as determined by the City Council. The City is working with Vivid Image to develop a web site where participants can spend an imaginary $100 on the seven programs that are most important to them such as police, fire, park and recreation and library services. NEW BUSINESS September Jacobsen, Event Center Coordinator presented the Board with the accomplislunents and goals of the Event Center, Senior Programming and the Adaptive Recreation Program. Kathy Hemmah supervises the Senior Programming and Adaptive Recreation Program. . The construction and completion of the new canopy over the entrance of the Event Center took place in 2006. The project was funded in part by funds received from room naming rights. The comments have been very positive. . Room remodeling - two activity rooms were combined to form one large room. Senior activity fundraising provided the funded for the project. . There were 350 business meetings held at the Event Center in '07 versus 160 in '06. . 21 trips were offered in '07 with 880 participants attending. There are approximately 500 to 600 senior activity newsletters mailed monthly. . The Adaptive Recreation Program is the only one of its kind in the seven county area. Typical activities include craft projects, dinner/dances and playing bingo. The United Way helps fund this unique program. September will explore the feasibility of the Event Center hosting events and speakers. A rotating maintenance schedule will be developed as the building ages. She will also solicit sponsorship of a dishwasher to allow for renting out china, flatware and glassware. Sharon Armstrong, Community Education Programmer reported that 239 programs and activities were offered in 2006 and 173 were held (70%). Student Drivers Education, 55 Alive Defensive Driving and swimming lessons are some of the programs held consistently. LP{c~)3 . MINUTES PRCE Advisory Board March 5, 2007 Page Two One ofthe services included in Community Education is taking reservations for the school facilities for example the gyms, swimming pools, auditoriums, cafeterias and classrooms. Community Education also includes Adult Basic Education or ABE, which offers adults an opportunity to learn English as a second language or test for General Education Development or GED, Classes are held at Ridgewater College Monday through Thursdays 9:00 am-3:00 pm and 5:00-8:00 pm year round. Early Childhood Family Education (ECFE) is also part of Community Education. The program offers parents of children age birth to kindergarten an opportunity to meet other new parents and discuss the challenges of parenting. Accomplishments in 2006 include an updated American Red Cross swim lesson program, new youth athletic camps, an extension of the summer lap swim program and a new, improved Community Education web page. . Looking ahead in 2007 Community Education will continue to collect All Day Every Day Kindergarten tuition fees, implement the improved rental rates for school facilities, coordinate the Middle School Pool use and offer a program held in Litchfield named DWP or Developing Winning Personalities. A DWP van picks up and returns Hutchinson youth to participate in healthy, fun and educational activities. Also in 2007 a community wide "Arts Midwest Music Ensembles" will be presented in the classroom for two weeks over two years with music and cultural benefits for students, a concert will be held at the conclusion of each event. Marv Haugen, Facilities and Operations Manager of the Recreation Center and the Burich Arena told the Board of the Burich family's commitment to the arena. A new ice resurfacer will be needed in 2009. The last one cost $50,000 the new one might be electric to help with emissions. A new electronic sign has been installed, sponsored by Citizens Bank, the cost is in the range of $30,000-$40,000 the excavation and landscaping was done by volunteers. Summer ice will be take place if three weeks of ice are sold. There has been a decline in the past three years, 277 hours in '04, 218 in '05 and 175 in '06. Culver's Restaurant is a new corporate sponsor. There are also eight advertising signs on the dasher boards in the east arena. The outdoor pool was opened in the summer of 1986; built with revenue collected by a referendum. At that time, the yearly attendance was 30,000; that number has dropped to 12,000- 13,000. The pool needs upgrades to stay competitive. People are going elsewhere for swimming fun. A proposal was drafted in 2001 for a 1.6 million dollar pool upgrade that would include a zero depth area, shallow play, and lap swimming areas, drop slides, water features and a sand volleyball court. The mechanical room, restrooms and shower area would also need to be upgraded. . L~ (Dl ') ;; . . . MINUTES PRCE Advisory Board March 5, 2007 Page Three If the half-cent sales tax were implemented, the pool upgrades could be one of the proposed projects to benefit from the raised revenue along with a proposed ballfield complex to be built in northeast Hutchinson near North High Drive and Bluff Street. It would include four new adult size softball and four soccer fields. ADJOURNMENT The meeting was adjourned at 6:25 pm by a motion made by Deane Dietel, seconded by Lora Muilenburg. The board unanimously agreed. klm u CC\)~ . . . MINUTES Parks, Recreation & Community Education Advisory Board April 2, 2007 Members present were: Kirk Kosel, Kathy Kalenberg, Bill Arndt, Mike Cannon, Mike Retterath, Deane Dietel and Bill Arndt. Also present were DolfMoon and Karen McKay. The meeting was called to order at 5:15 pm. A motion was made by Mike Cannon and seconded by Mike Retterath to approve the minutes dated March 5, 2007. The board unanimously agreed. OLD BUSINESS Follow-up on Presentations - The presentations allow the staff to review accomplishments and present goals within their areas. Armual Report - The year-end report was distributed to the School Board and the City Council. NEW BUSINESS Survev Results - The City Council commissioned a survey to be done regarding the quality of leisure services in Hutchinson. 1,200 questionnaires were distributed with a 46% return rate. There were several areas in which Hutchinson rated above the norm including city parks, recreation programs or classes, and appearance and accessibility of parks and recreation facilities. The survey gives staff a good indication of how they're doing. A student survey was conducted in two classes of each grade 3 to 11 assessing the need for recreational programs and facilities. Most noticeable was that the age of the children dictated which facilities and activities were most requested. HalfPennv Sales Tax -Ifvoted on and implemented, a halfpenny sales tax could fund special projects such as recreation facilities. Summer Proiects . Rolling Meadows East is located on approximately a half acre of land east of Montana Street. A group of mothers, one of whom has a disabled child, has raised $13,000 as part of a $25,000 project that will include a swing for a toddler and a companion. The equipment will be ordered May I st and installed in June after summer staff is back to work. . Driftrider Park is located on five acres of land along Otter Lake. A grant has been declined twice for funding of a shelter, which would be constructed with the help of Driftrider volunteers. A non-traditional play structure including manufactured boulders for climbing and a walking path are planned. . Disc Golf is being installed in South Park. Contributions have been collected to buy discs for Park Elementary and instructional classes are scheduled through Community Education. {JJ(O.)3 . . . MINUTES PRCE Advisory Board April 2, 2007 Page Two . Dam - The City Council gave authorization to develop a plan for the dam replacement. The project is estimated to be approximately $1.5 million. The Department of Natural Resources (DNR) has appropriated $500,000 for the project. Plans for the project will continue to move ahead. . HarringtonlMerrill House - The timber framers have begun to replace the fue-damaged portion of the house. Native trees and square nails are being used to preserve the national registry potential. . Firemen's Park - Flagstone will replace the pavers surround the cupola in the park. . Hwy. 7 Underpass - The underpass planned for Highway 7 will move ahead despite dissention. An overpass would not be practical because of the distance needed for the proper grade needed on the ramp to the Luce Line Trail. Mav Registration - Early summer program registration is scheduled for Tuesday, May 2nd from 6:00-7:30 pm in the Rec Center Gym. Dolf asked board members to volunteer as cashiers or to help distribute registration slips. BOARD MEMBER ITEMS Luce Line Trail- A meeting was held in Silver Lake with 125-150 people in attendance discussing the possible paving of the Luce Line Trail and how it could be financed. ADJOURNMENT The meeting was adjourned at 6:15 pm by a motion made by Deane Dietel, seconded by Bill Arndt. The board unanimously agreed. klm to ( C\ )3 . . . Minutes Hutchinson Public Library Board March 26, 2007 Members present: John Paulsen, Ann Vance, Yvonne Johnson, John Hassinger, Janet Vacek, and Mary Henke, Ex-0fficio Members absent: Kay Peterson and Julie Jensen Vice-President John Paulsen called the meeting to order. February 26, 2007 minutes were approved. Report: Mary reviewed the report submitted by Jack Sandberg regarding the Pioneerland Library System (PLS) Board Meeting on March 15, 2007. See enclosure. Old Business: 1. New Board Members-Two names, Guy Stone and Abbie Dahlquist, have been submitted to the City Council for approval. 2. Plans continued to be developed for Will Weaver's visit to the Library on April 19 at 7:00 p.m. His visit is being undertaken in partnership with Ridgewater College. Would like the Board members to arrive at 6:15-6:30 p.m. to help set up. 3. The nominalion for the PLS Hall of Fame award will be put off for one year because of schedule conflicts. New Business: 1. Our presentation to the Mcleod County Board of Commissioners w~1 be Tuesday, May 22 at Glencoe. The time will be forthcoming. 2. A publication entitled Municipal Benchmarks was passed out. This information will be reviewed at later Board meetings. Our focus is on establishing community standards, specifically for libraries, and wnt be addressed by the Hutchinson Library Board. The Library Board thanked Julie Jensen and John Hassinger for their dedicated work on our Library Board as they leave the board affer their six years of service. Next meeting will be on April 23, 2007 at 4:30 p.m. Meeting adjourned. Respectfully submitted, John Hassinger, Co-Secretary (p(t\ )~ . Memo Hutchinson Fire Department To: Mayor and City Council Memt>ers From: Brad Emans, Fire Chief Date: 06/01/07 Re: Monthly Update on Activities of the Fire Department Fire Department Response: The fire department responded to 28 general alarms in the month of May. Officer Onty Response: An "officer only" responded to 11 calls in May, saving the fire district the cost of a general alarm and more importantly, kept our firefighters on their full time job or at home with their families! Response Time (First Emergency Vehicle Out of the Door): May - 3 minutes 55 seconds . Example of a few of the calls: . We responded to a rescue when a driver lost control of the vehicle and rolled into a drainage ditch filled with water pinning the driver. . We responded to a semi-truck rollover pinning the driver. . We responded to an explosion in one of the building at one of our major industrial manufactures. Fortunately no employee was injured. . We responded to an out-of-control grassland fire. The fire took three hours and three fire departments to bring it under control. . We responded to a pile of tires, grass, and tree fire. The fire was determined to t>e arson. . We responded to a house fire in one of our rural fire districts. The house suffered heat and smoke damage. The fire was ruled accidental. . We responded to a controlled brush pile bum that got out-of-control and spread into the tree line. It took two hours to get the fire under control. . 1 (P(u,)~ This Is the breakdown of the calls for the month: . City: Residential 2 CommerciaVlndustrial6 Multi-family 1 SchoolO Carbon Monoxide 3 Hazardous Material 3 Vehicle 1 Rescue 1 Medical 0 Grass 1 Sky-Wam 0 Good Will 0 Mutual Aid 0 Structure Fires 1 Arson 1 Rural: Rescue 4 Grass Type 2 Medical 2 Residential 2 Farm Building 0 Hazardous Material 0 Carbon Monoxide 0 Vehicle 0 Commercial/Industrial 0 Good Will 0 Mutual Aid Structure Fires 2 Arson 0 Drills I Meetings I Other Infonnatlon Training: 1. We started our new tactics dass with an emphasis on completing a task on scene with limrted information/direction 2. We completed the mandatory annual fire hose testing 3. Participated In a Life Link safety zone seminar . Fire Prevention I Public Relations 1. Taught two fire extinguisher classes for Hutchinson Telephone 2. Taught a fire extinguisher ciass for Mcleod County Treatment 3. Taught a 1 ~ Aid class for a group of cub scouts followed with a tour of the station 4. Worked with 3 pre-school classes that induded a tour of the station and a ride in the fire truck 5. Taught a fire extinguisher class for the area DNR 6. Participated in Memorial Day Services . It is with regret that we had to say another goodbye to a retired firefighter in May - Firefighter Ray Fitzloff faithfully served the City of Hutchinson and the Hutchinson Fire Department for 24 year. . . Page 2 ~~(C\J6 (~rr'" OF H,Ul'CHINSON COlTN~r O'F 'BUIL'DINGIPLU"MBJ.N'GIl\tI.ECH.A4l'i{CAL PERl\1ITS ISSlJED AND-'lALUATiON . . .,~ ""~~;'A~l~';~~.~1 "~f:'~~"'~~~~~1i[.m';~,~~ ~I~~. :~.%~]~S=~~.- ~'f. ,~""--.' - . -.... ~L~:'"~:t';1 c'. .. """ ...~ 'M~,.'.'--~ . .. ....---..:~c _" - --"'-r..... Ma 2007 No. oj' Permits 7 3. 1 3 5 1 8 1 16 1 3 8 19 8 4 5 14 25 10 13, 1 Valuation Accessory Bldgs Basement Finish Buildings Moved Conunercial - Ne\v Conurtercial AdditionIRemodel Commercial re-Roof Deck Driveway - Residential Fence Garage - At1ac4ed Gara e - Detached Miscellaneous Reshingle - Residential Residential AdditionlRepairlRemodel Reside - Residentia.1 Siu.le Family Window Replacement- Residential Mechanical Plumbing Sign Fite Sprilikling 514,000 131 ~ 000 25,000 9~OOO :60~OOO 94}500 702~OOO 78,495 40,448 TOTAL PEI~IT$ ISSUED AND V ALU~~TION ~lll~i~~~~t<~;r~~. .i~'~.'=;:&1rl1~~ ""~"" t~.i '.' "~'.T'Tl, ~.y di.'; .. ..~'t:.~ ...r. .;~f~~~~.:~:il\~~~;~tf! 156 1,654,443 Lc (r.\)~1 . . . RESOLUTION NO. 13221 RESOLUTION IN SUPPORT OF A 2007 SPECIAL LEGISLATIVE SESSION TO CONSIDER THE OMNIBUS TAX BILL WHEREAS, the Minnesota Legislature, in its 2007 regular session, passed the 2007 Omnibus Tax Bill (House File No. 2268); and, WHEREAS, the Omnibus Tax Bill contained provisions, including: homestead property tax refunds increases in local govemment aid, which would benefit cities, counties and townships veterans' benefits higher education tuition deductions incentives for farm and business expansion; and, WHEREAS, the regular legislative session of the 2007 Legislature has now ended; and, WHEREAS, the Onmibus Tax Bill was vetoed by Minnesota Governor Tim Pawlenty on May 30, 2007, and the Governor has indicated support for tax levy limits which constrict the ability of municipalities to generate revenue for municipal services; and, WHEREAS, enactment of the Onmibus Tax Bill would be a great benefit for the taxpayers of Minnesota, especially property taxpayers; and, WHEREAS, a special legislative session, if convened, would permit further discussion and possible enactment ofthe Onmibus Tax Bill, NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA THAT this Council requests that the Governor ofthe State of Minnesota, Tim Pawlenty, convene a special legislative session without delay to enact the 2007 Onmibus Tax Bill. AND BE IT FURTHER RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON THAT this Council urges the Governor and State Legislature to not impose limits on municipal tax levies. Adopted by the City Council this day of ,2007. Steven W. Cook Mayor ATTEST: Gary D. Plotz City Administrator 0Cb) \ RESOLUTION NO. 13222 CITY OF HUTCHINSON . RESOLUTION FOR PURCHASE The Hutchinson City Council authorizes the purchase of the following: ITEM COST PURPOSE DEPT. BUDGET VENDOR Custom Play Structure $23,896 Park Improvements PARK (I) Flanagan Sales Inc Rolling Meadows Park ~ Donation by Mothers of Preschool Children (MOPS) of $13,000 balance from Park land dedication nd e following items were authorized due to an emergency need: ITEM COST PURPOSE DEPT. BUDGET VENDOR Resolution submitted for Council action Kenneth B. Merrill by: Finance Director Date Approved: June 12,2007 tlotion Made By: Seconded By: &;(10)2 . . . Resolution No. 13223 Resolution Supporting the Efforts of the City of Glencoe In Their Attempt for Inclusion of the NPIAS for the Expansion of Veroon Perschau Field to Regional Airport Status WHEREAS, the City of Glencoe, Minnesota is submitting an application to the Federal Aviation Administrator for inclusion in the National Plan ofIntegrated Airport Systems (NPIAS); and, WHEREAS, the City of Glencoe Municipal Airport, Vernon Perschau Field, is proposing the potential expansion to regional airport status by extending their runway to 5000 feet and constructing a crosswind runway; and, WHEREAS, the City of Hutchinson, Minnesota realizes the potential economic impact to McLeod County and area with a regional airport within 30 minutes of the City of Hutchinson, NOW, THEREFORE BE IT RESOLVED BY THE CITY OF HUTCHINSON THAT: 1. That the City of Hutchinson, Minnesota fully supports the efforts of the City of Glencoe, Minnesota in their attempt for inclusion of the (NPIAS) for the expansion ofVemon Perschau Field to Regional Airport Status. 2. That the City Administrator will forward a copy of this resolution to the City of Glencoe for inclusion with NPIAS Application. Adopted by the City Council this 12th day of June, 2007. Steven W. Cook Mayor ATTEST: Gary D. Plotz (Q (10)3 MEMORANDUM . DATE: June 6, 2007 for the June 12, 2007 City Council meeting Hutchinson City Council TO: FROM: Rebecca Bowers, AICP, Planning Director SUBJECT: Wind Energy Conversion Systems (WECS) Ordinance and Summary Ordinance BackQround: At the April 10, 2007 City Council meeting, the Council approved the Wind Energy Conversion System (WECS) ordinance. The ordinance will take affect after the second reading is approved at the June 12th meeting and the ordinance is published. Due to the size and cost of publishing the full ordinance, staff has prepared a summary ordinance to be published. The proposed summary for the WECS ordinance is attached. State Statues require the City Council to approve publishing of a summary ordinance with a 4/5 majority. Approval to publish the summary ordinance can be included with the second reading of the ordinance. . Requested Action: Approval of the following: 1. Adoption of ordinance 07-0463 creating Section 154.26 of the Zoning Ordinance to establish regulations for the installation and operation of wind energy conversion systems (WECS). 2. Approval to publish the attached summary ordinance. Attachments: WECS Ordinance Summary Ordinance . 1o(~)L\ . . . ORDINANCE NO. 07- 0463 AN ORDINANCE AMENDING CHAPER 154 (ZONING) OF THE HUTCHINSON CITY CODE TO CREATE SECTION 154.26 ESTABLISHING REGULATIONS FOR THE INSTALLATION AND OPERATION OF WIND ENERGY CONVERSION SYSTEMS (WECS) THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA ORDAINS: Notice of public hearing was duly given and publication of said hearing was duly made to appear to the satisfaction ofthe City Council that it would be in the best interests of the City to amend the Zoning Ordinance to create Section 154.26 of the City Code to establish regulations for wind energy conversion systems as foJlows: 154.26 Wind Energy Conversion Systems (A) Purpose: The ordinance is established to regulate the installation of Wind Energy Conversion Systems (WECS) within the City of Hutchinson, not otherwise subject to siting and oversight by the State of Minnesota. (B) Interpretation, Conflict and Separability: 1. Interpretation - In interpreting these regulations and their application, the provisions of these regulations shaJl be held to be the minimum requirements for the protection of public health, safety and general welfare. These regulations shaJl be constructed to broadly promote the purposes for which they are adopted. 2. Conflict - These regulations are not intended to interfere with, abrogate or annul any other ordinance, rule or regulation, statute or other provision of law except as provided in these regulations. If any provision ofthese regulations that impose restrictions different from any other ordinance, rule or regulation, statute or provision oflaw, the provision that is more restrictive or imposes higher standards shall control. 3. Separability - If any part or provision of these regulations or the application of these regulations to any developer or circumstances is found invalid by any competent jurisdiction, the judgment shall be confmed in its operation to the part, provision or application directly involved in the controversy in which the judgment shall be rendered and shall not affect or impair the validity of the remainder of these regulations or the application of them to other developers or circumstances. (C) Enforcement, Violations, Remedies and Penalties - Enforcement ofthe Wind Energy Conversion System Ordinance shall be done in accordance with process and procedures established in the City of Hutchinson Zoning Ordinance. (D) Definitions: WECS - Wind Energy Conversion System: An electrical generating facility comprised of one or more wind turbines and accessory facilities, including but not limited to: power lines, transformers, substations and meteorological towers, that operate by converting the kinetic energy of wind into electrical energy. The energy may be used on-site or distributed into the electrical grid. -1- Loeb) ~ . . . Aggregated Project: Aggregated projects are those which are developed and operated in a coordinated fashion, but which have multiple entities separately owning one or more of the individual WECS within the larger project. Associated infrastructure such as power lines and transformers that service the facility may be owned by a separate entity but are also included as part of the aggregated project. Commercial WECS: A WECS of equal to or greater than 100 kW in total name plate generating capacity. Non-Commercial WECS:A WECS ofless than 100 kW in total name plate generating capacity. Fall Zone: The area, defined as the furthest distance from the tower base, in which a guyed tower will collapse in the event of a structural failure. This area is less than the total height ofthe structure. Feeder Line: Any power line that carries electrical power from one or more wind turbines or individual transformers associated with individual wind turbines to the point of interconnection with the electric power grid, in the case of interconnection with the high voltage transmission systems, the point of interconnection shall be the substation serving the WECS. Meteorological Tower: For the purposes of this WECS ordinance, meteorological towers are those towers which are erected primarily to measure wind speed and directions plus other data relevant to siting WECS. Meteorological towers do not include towers and equipment used by airports, the Minnesota Department of Transportation, or other similar applications to monitor weather conditions. Property line; The boundary line ofthe area over which the entity applying for a WECS permit has legal control for the purposes of installation of a WECS. This control may be attained through fee title ovmership, easement, or other appropriate contractual relationship between the project developer and landowner. Rotor diameter: The diameter ofthe circle described by the moving rotor blades. Substations: Any electrical facility designed to convert electricity produced by wind turbines to a voltage greater than 35,000 volts for interconnection with high voltage transmission lines shall be located outside of the road right of way. Total height: The highest point, above ground level, reached by a rotor tip or any other part of the WECS. Tower: Towers include vertical structures that support the electrical generator, rotor blades, or meteorological equipment. Tower height: The total height of the WECS exclusive of the rotor blades. Transmission Line: Those electrical power lines that cany voltages of at least 69,000 volts (69 KV) and are primarily used to cany electric energy over medium to long distances rather than directly interconnecting and supplying electric energy to retail customers. Public conservation lands: Land owned in fee title by State or Federal agencies and managed specifically for grassland conservation purposes, including but not limited to State Wildlife Management Areas, State Parks, State Scientific and Natural Areas, federal Wildlife Refuges and Waterfowl Production Areas. For the purposes of this section public conservation lands will also include lands owned in fee title by non-profit conservation organizations. Public conservation lands do not include private lands upon which conservation easements have been sold to public agencies or non-profit conservation organizations. - 2 - 0Cb)Y . . . Wind Turbine: A wind turbine is any piece of electrical generating equipment that converts the kinetic energy of blowing wind into electrical energy through the use of airfoils or similar devices to capture the wind. E. Application Procedures: Application for WECS shall be reviewed and processed in accordance with the conditional use permit procedures established in Section 154.170 of the Hutchinson Zoning Ordinance, as identified in the District Regulations table. The following information is required in addition to the information required for a site plan or conditional use permit application: The application for all WECS shall include the following information: 1. The names of project applicant 2. The name of the project owner 3. The legal description and address of the project. 4. A description of the project including: Number, type, name plate generating capacity, tower height, rotor diameter, and total height of all wind turbines and means of interconnecting with the electrical grid. 5. Property survey, including the location of property lines, wind turbines, electrical wires, interconnection points with the electrical grid, and all related accessory structures. The site layout shall include distances and be drawn to scale. 6. Evidence that the applicant can obtain and maintain adequate liability insurance for the WECS and subj ect property. 7. Engineer's certification 8. Documentation ofland ownership or legal control ofthe property The application for Commercial WECS shall also include: 1. The latitude and longitude of individual wind turbines. A USGS topographical map, or map with similar data, of the project site including boundaries ofthe project area, surrounding property within V. mile, and any other WECS within 10 rotor diameters of the proposed project. 2. Location of wetlands, scernc, and natural areas (including bluffs) within one mile of the proposed WECS. 3 . FAA Pennit Application 4. Location of all known Communications Towers within 2 miles ofthe proposed project. Provide proof that the WECS will not interfere with emergency or other microwave transmission. 5. A noise study, prepared by a qualified professional, that demonstrate that except for intermittent episodes, the WECS shall not emit noise in excess of the limits established in Minnesota Rules 7030 governing noise and Section 92.18 of the Hutchinson City Code, as applicable. 6. A shadow flicker model that demonstrates that shadow flicker shall not fall on, or in, any existing residential structure. Shadow flicker expected to fall on a roadway or a portion of a residentially wned property may be acceptable if the flicker does not exceed 30 hours per year; and the flicker will fall more than 100' from an existing residence; or the traffic volumes are less than 500 vehicles (ADT). The shadow flicker model shall: (a) Map and describe with a 1,000' radius of the proposed dispersed wind energy system the topography, existing residences and location of their windows, location of other structures, wind speeds and directions, existing vegetation and roadways. The model shall represent the most probable scenarios of wind constrancy, sunshine constancy, and wind directions and speed; (b) Calculate the locations of shadow flicker caused by the proposed project and the expected durations of the flicker at these locations, calculate the total number of hours per year of flicker at all locations. (c) Identify problem areas where shadow flicker will interfere with existing or future residences and roadways and describe proposed mitigation measures, including, but not limited to, a - 3 - LoCk?)Y . . . change in siting of the WECS, a change in the operation of the WECS, or grading or landscaping mitigation measures. 7. Decommissioning Plan 8. Description of potential impacts on nearby WECS and wind resources on adjacent properties. Application Procedures for Aggregated Projects: Aggregated Projects may jointly submit a single application and be reviewed under joint proceedings, including notices, hearings, reviews and as appropriate, approvals. Permits will be issued and recorded separately. All aggregated projects over the 5 MW threshold currently outlined in State Statute are subject to State regulation. F. District Regulations: WECS will be conditionally permitted or not permitted based on the generating capacity and land use district as established in the table below: Zoning District Non-Commercial Commercial Meteorological WECS WECS Tower C-l, C-2, Not Permitted Not Permitted Not Permitted C-3, C-5 C-4 Conditionally Conditionally Permitted Conditionally Permitted Permitted IIC Conditionally Not Permitted Conditionally Permitted Permitted 1-1 & 1-2 Conditionally Conditionally Permitted Conditionally Permitted Permitted GT Conditionally Not Permitted Conditionally Permitted Permitted R-l,R-2 Conditionally Not Permitted Conditionally Permitted Permitted R-3, R-4, R-5 Not Permitted Not Permitted Not Permitted G. Setbacks All towers shall adhere to the setbacks established in the following table: Non-Commercial WECS Commercial WECS Meteorological Towers Property Lines 1.1 times the total height 1.1 times the total 1.1 times the total height height Neighboring Setback to property line of 750 feet Guyed towers: The fall zone, Structures 1.1 times the total height as certified by a professional required. engineer + 1 0 feet Non-guyed towers: 1.1 times the total height Road Right of Way Guyed towers: The fall 1.1 times the height and Other Right of zone, as certified by a Ways (Railroads, professional engineer + 1 0 power lines, etc.) feet Non-guyed towers: 1.1 times the total height Other Existing N/A 600 feet 600 feet WECS - 4- (0 (Jo)Y . . . Wetlands, USFW T esill,IVandV 600 feet 600 feet N/A H. Requirements and Standards I. Safety Design Standards (a) Engineering Certification - For all WECS, the manufacture's engineer or another qualified engineer shall certify that the turbine, foundation and tower design of the WECS is within accepted professional standards, given local soil and climate conditions. (b) Clearance - Rotor blades or airfoils must maintain at least 12 feet of clearance between their lowest point and the ground. (c) Warnings - For all Commercial WECS, a sign or signs shall be posted on the tower, transformer and substation warning of high voltage. Signs with emergency contact information shall also be posted on the turbine or at another suitable point. Painted aviation warnings are recommended on metrological towers less than 200 feet (d) For all guyed towers, visible and reflective objects, such as plastic sleeves, reflectors or tape, shall be placed on the guy wire anchor points and along the outer and innermost guy wires up to a height of 8 feet above the ground. Visible fencing shall be installed around anchor points of guy wires on all commercial, industrial, and institutional properties. 2. Standards (a) Total height - Non-Commercial WECS shall have a total height ofless than 200 feet. (b) Tower configuration - All wind turbines, which are part of a commercial WECS, shall be installed with a tubular, monopole type tower. (c) Color and Finish - All wind turbines and towers shall be white, grey or another non-<lbtrusive color. Blades may be black in order to facilitate deicing. Finishes shall be matt or non-reflective. Metrological towers are exempt from this requirement. (d) Lighting - Lighting, including lighting intensity and frequency of strobe, shall adhere to but not exceed requirements established by Federal Aviation Administration permits and regulations. Red strobe lights are preferred for night-time illumination to reduce impacts on migrating birds. Red pulsating incandescent lights should be avoided. (e) Other Signage - All signage on site shall comply with the City of Hutchinson sign ordinances. The manufacturer's or owner's company name and/or logo may be placed upon the nacelle, compartment containing the electrical generator, of the WECS. (f) Feeder Lines - All communications and feeder lines, equal to or less than 34.5 kV in capacity, installed as part of a WECS shall be buried where reasonably feasible. Feeder lines installed as part of a WECS shall not be considered an essential service. This standard applies to all feeder lines subject to City authority. (g) Shadow Flicker - Shadow flicker may not exceed 30 hours per year and shall not fall more than 100' from an existing residential property. - 5 - lcOo }L-I . . . (h) Waste Disposal- Solid and Hazardous wastes, including but not limited to crates, packaging materials, damaged or worn parts, as well as used oils and lubricants, shall be removed from the site promptly and disposed of in accordance with all applicable local, state and federal regulations. (i) Discontinuation and Decommissioning - A WECS shall be considered a discontinued use after I year without energy production, unless a plan is developed and submitted to the Hutchinson City Zoning Administrator outlining the steps and schedule for returning the WECS to service. All commercial WECS and accessory facilities, including the foundation, shall be completely removed within a year of the discontinuation of use for commercial WECS projects. For non-commercial projects, the footings for the WECS may be left in place provided the slab remains in place. (j) Each Commercial WECS shall have a Decommissioning plan outlining the anticipated means and cost of removing WECS at the end of their serviceable life or upon becoming a discontinued use. The cost estimates shall be made by a competent party; such as a Professional Engineer, a contractor capable of decommissioning or a person with suitable expertise or experience with decommissioning. The plan shall also identifY the [mancial resources that will be available to pay for the decommissioning and removal of the WECS and accessory facilities. (Ie) Orderly Development - Upon issuance of a conditional use permit, all Commercial WECS shall notifY the Energy Facility Pennitting staff of Department of Commerce of the project location and details on the form specified by the Department. (I) Noise - All WECS shall comply with Minnesota Rules 7030 governing noise and Section 92.18 "Public Nuisances Affecting Peace and Safety" of the Hutchinson City Code. (m) Complaint Resolution - The owner/operator ofthe WECS shall develop a process to resolve complaints from nearby residents. The process shall use an independent mediator or arbitrator and include a time frame for acting on a complaint. The applicant shall make every reasonable effort to resolve any complaint. (n) Electrical codes and standards - All WECS and accessory equipment and facilities shall comply with the National Electrical Code and other applicable standards. (0) Federal Aviation Adrninistration- All WECS shall comply with FAA standards and permits. (p) Uniform Building Code - All WECS shall comply with the Uniform Building Code adopted by the State of Minnesota. (q) Interference - The applicant shall minimize or mitigate interference with electromagnetic communications, such as radio, telephone, microwaves, or television signals cause by any WECS. The applicant shall notifY all communication tower operators within two miles of the proposed WECS location upon application to the City for permits. No WECS shall be constructed so as to interfere with any microwave transmissions. (r) Right of Entrance - By the acceptance of the conditional use pennit, the owner/operator grants pennission to the City of Hutchinson to enter the property to remove the WECS pursuant to the tenns of the conditional use permit and to assure compliance with other conditions set forth in the permit. - 6 - loCb)1-\ . . . 3. Avoidance and Mitigation of Damages to Infrastructure and Utilities (a) Roads - Applicants shall: Identify all county, city or township roads to be used for the purpose of transporting commercial WECS, substation parts, concrete, and/or equipment for construction, operation or maintenance ofthe commercial WECS and obtain applicable weight and size permits from the impacted road authority(ies) prior to construction. (b) Be responsible for restoring or paying damages as agreed to by the applicable road authority(ies) sufficient to restore the road(s) and bridges to preconstruction conditions. (c) Drainage System - The Applicant shall be responsible for immediate repair of damage to public drainage systems stemming from construction, operation or maintenance ofthe WECS. (d) The owner of the WECS is responsible for any damage to any below grade public or private utilities, due to the installation, operation, decommissioning, or action otherwise resulting for any WECS. EFFECTIVE DATE OF ORDINANCE. This ordinance shall take effect upon is adoption and publication. Adopted by the City Council this 12th day of June, 2007. Attest: Gary D. Plotz City Administrator Steven W. Cook Mayor - 7- LcCb)LJ . . ~ Publication No. 7591 Summary Ordinance for the City of Hutchinson Amending Chapter 154 (Zoning) of the Hutchinson City Code to Create and Enact Section 154.26 Establishing Regulations for the Installation and Operation of Wind Energy Conversion Systems (WECS) The City of Hutchinson has adopted Ordinance 07- 0463 to amend Chapter 154 (Zoning) of the Hutchinson City Code to create and enact Section 154.26 City of Hutchinson Code of Ordinances, entitled Wind Energy Conversion Systems (WECS). The following is a summary of the adopted ordinance: The purpose of the ordinance is to provide definitions, regulations, procedures, and standards for the installation and operation of wind energy conversion systems (WECS) and related meteorological towers. The ordinance identifies zoning district regulations and application procedures for commercial and non-commercial WECS and meteorological towers. District regulations specify minimum setbacks for WECS and meteorological towers to property lines, structures, right of ways, and other WECS. The ordinance also provides requirements and safety design standards and general standards, such as engineering requirements, maximum height, tower configuration, finish, lighting, signage, feeder lines, shadow flicker, noise, interference, decommissioning, and building and electrical standards. A voidance and mitigation of damages to infrastructure and utilities is also addressed. Effective Date: This ordinance becomes effective upon its passage and publication according to law. The ordinance was adopted unanimously by the City Council on June 12,2007. A copy of the complete ordinance is available for review at the City offices, 111 Hassan Street S.E., Hutchinson. Contact Rebecca Bowers at (320) 234-4258 for more information. Submitted by: Rebecca Bowers Planning Director Loeb )Y ~ ai'~u . III Hassan Street Southeast Hutchinson, MN 55350 (320) 587-51511F",: (320) 234-4240 City of Hutchinson APPLICATION FOR GAMBLING DEVICES LICENSE In provisions of the City of Hutchinson Ordinance No. 655 and Minnesota Statutes Chapter 349 All applications must be received at least 30 davs before event in order to be considered A lication T Q FuIlYearJanuaryl-December31, Fee: $100.00 / I Year 'I-. Short Term Date(s) q / Sf -7 Fee: $25.00 Month/D (Year - Month/D :fY ear o 70S ~v-J f\~~ s: F- Address where regular meeting are held 2I\JJ l-1 v-t\\~';IO,.J City 'h- ~ State S5~50 Zip . Day and time of meetings? Is this organization organized under the laws of the State of Minnesota? Q no How long has the organization been in existence? Sc '\ r\ How may members in the organization? --- q 0 What is the purpose of the organization? ""li'I ))f(),~.\~ r. ':J~'-l\~o...J -he- ,e"'\':n.J ~1c In whose custody will organization records be kept? "\ l:::>o.J ,~a"CiP.,r- - r-r('>G\.r"r J Name 1)/)2 f-\wC:t 7 A ddl-ess "" ~~k~N\O-i Ci (320) 'Z82.-t:d'7 Phone Number 55 sSo Zi MN State Dul Date of Birth: lc We ,1C~~NIo,.J City' State Place of Birth: \:"'0" l< C~i '-- City .J Q yes ~no MrJ 5"53)0 Zip ~A State I 'Zlc I &7.... Month/day/year Have you ever been convicted of any crime other than a traffic offense? If yes, explain: . (p (c-~ ) . . . City of Hutchiruon Application for Bingo Gambling Devices License Page 2 of3 Desi ated Gamblin 329 True Name Phone Number Residence Address City Slale Zip Date of Birth: / / Place of Birth: Monlh/daylyear Have you ever been convicted of any crime other than a traffic offense? If yes, explain: How long have you been a member of the organization? City Dyes 0 no Slale Game Information Location # 1 . +-.\Jt1 ~ ,J!6,.) i=~ r (" \')e p 1- 587-25010 Name of localion where game will be played Phone Number 20$ ~(~ ~e SE- j-\....tCI<Njo ..J MAJ 55356 Address of iocation where game will be played City State Zip o ' q/t 5/7 Date(s) and/or day(s) gambling devices will be used: 'i<a.-t{k ~ ~g,~ 2- @b Hours of the day gambling devices will be used: From 10 PM To Maximum number of player: U..Jt~Mj-e.J. ~erchandise f \..JQc.c......tb.J tr'. p Will prizes be paid in money or merchandise? o money Will refreshments be served during Ihe time the gambling devices will be used? ~yes Ono If yes, will a charge be made for such refreshments? 0 yes ano Game Information Location #2 Name of location where game will be played Phone Number Address of location where game will be played City State Zip Date{s) and/or day(s) gambling devices will be used: through AM AM Hours of the day gambling devices will be used: From PM To PM Maximum number of player: Will prizes be paid in money or merchandise? o money o merchandise Will refreshments be served during the time the gambling devices will be used? Dyes Ono Ifves, will a charge be made for such refreshments? Dyes o no Officers of the Organization (if necessarv, list additional names on seDarale sheel) r- , 1:-0<"<1 e, Name Arc\., s,t Residence Address b (0 J.~ Name 5So J\~c:\,J ~\ ~ Residence Address ?rej~ ~\"",,-t Title j.t.:\L~~NS(),,) City V,e e GetJ) t 7S l\E- NI N 5'5350 State Zip ~r<?,j'\ ~ {'""i- Title ,.-;- , ~\IY\ jlJ1',tJsot-l City M,v State 5-53'5 () Zip ~CL) . . . City.of Hutchinson Applicationjor Bingo Gambling Devices License Page 3 of3 ~i?( re:l--a.) Title ~U:Ll~AiiGN MAJ Ci State ))?S-o ZI =s- e~~ ~ StfQ. ~<; Name ?o. 00f l..{~3 Residence Address Officers or Other Persons Paid for Services Information (if necessarv, list additional names on seDarate sheet) Title Name City State Zip Residence Address Name Title City State Zip Residence Address Title Name City ZiD Residence Address State Have you (Gambling Manager and Authorized Officer) read, and do you thoroughly understand the provisions of all laws, ordinances, and regulations governing the operation and use of gambling devices (as outlined in City of Hutchinson Ordinance 114.20 and Minnesota Statutes Chapter 349)7 Gambling Manager 0 yes 0 no Authorized Officer 'f.yes 0 no (), S. . Initial Initial I declare that the information I have provided on this application is truthful, and I authorize the City of Hutchinson to investi ate the information submitted. Also, I have received from the City of Hutchinson a copy of the City Ordinance No. 114.2 r lating to amb g and I will familiarize myself with the contents thereof. I<i.~ b(y /7 . Dbte ~ rized officer of organization Signature of gambling manager of organization Date internal Use Onlv City Council o approved 0 denied Notes: wee-) . . . TO: Mayor & City Council FROM: Kent Exner, City Engineer RE: Consideration oflmprovement Project Change Orders DATE: June 12,2007 As construction has proceeded on the below listed projects there have been addilional work, project scope revisions, and construction staging revisions. All of these items have been identified and deemed necessary to satisfactorily complete the projects. The following Change Orders are proposed to address these items: o Change Order No.3 - Letting No. l2/Project No. 06-14 - WWTF Administration Building Expansion This Change Order addresses several relatively minor construction items detennined necessary by Wold Architects and Engineers. Also addressed by this Change Order is the need to extend the Substantial Completion Date to June 15,2007. The summation of the cost increases and decreases results in a net increase of $12,633.41 to the original contract amount. We recommend that the above Change Orders be approved in the amounts listed. cc: Gary Plotz, City Administrator wed) . . . MEMORANDUM TO: MAYOR AND CI1Y COUNCIL FROM: RANDY DEVRIES AND KENT E.,'{NER SUBJECT: CHANGE ORDER #3-WWTF ADMIN EXPANSION DATE: 5/25/2007 \'Ve would like to request approval of change order #3 for the Wastewater Administration Building Expansion project in the amount of $12,633.41. We have reviewed the changes and are recommending approval. " ::----' Kent Exner - City Engineer Ran eYries - Water/Wastewater Manager Co{d) . . . . AlA Document G701" - 2001 Change Order PROJECT (Name and address): City of Hutchinson L 12/06-14 Wastewalet Treatment Facility Administrntion Building Expansion BOO Adams Street Hutchinson, Minnesota 55350 TO CONTRACTOR (Name and address): Ebert Construction 23350 County Road 10 Loretto, Minnesota 55357 CHANGE ORDER NUMBER: Three (3) DATE: May 21, 2007 ARCHITECT'S PROJECT NUMBER: 062030 CONTRACT DATE: October 17,2006 CONTRACT FOR: General Construction OWNER: 0 ARCHITECT: 0 CONTRACTOR: 0 FIELD: 0 OTHER: 0 THE CONTRACT IS CHANGED AS FOlLOWS: (Include, where applicable, any undisputed amcWll attributable to previously executed Construction Change Directives) PR #9 Provide stainless steel deep double basin sink at room 15 Add $ 206.64 PR #11 Reroute main ground conductor to avoid conflict with new ductwork Add $ 1,356.08 PR #13 13.2 accepted - relocate electrical outlet and data outlet to coordinate with furniture PR #14 Change future ballasts, relabel wiring, etc. due to a missing neutral at the existing electrical service Add Revise gas piping details 00 reflect 2 PSIG pressure Add Revise canopy framing details Add Provide a furred gypsum wall at east wall of room 24 Add Revise existing roof blocking Add Provide weider outlet in room lOB Add Request for extension of Substantial Completion date from 4f20107 to 6115107 Add Add PR#16 PR#17 PR#21 CP#19 CP #20 CP #22 TOTAL CHANGE ORDER NO.3 ADD The original Contract Sum was The net change by previously authorized Change Orders The Contract Sum prior to this Change Qrrler was The Contract Sum will be increased by this Change Order in the amount of The new Contract Sum including this Change Order will be The Contract Tune will be increased by Fifty Six ( 56 ) days. The date of Substantial Completion as of the date of this Change Order therefore is June 15,2007 $ 261.53 $ $ $ $ $ 1.106,200.00 2,554.86 1.108,754.86 12,633.41 1.12I.388.27 $ 4,594.41 $ 826.56 $ 1,420.65 $ \,014.98 $ 2,637.22 $ 315.34 $ 0.00 $12,633.4] NOTE: This Change Order does not include changes in the Contract Sum, Contract Time or Guaranteed Maximum Price which have been authorized by Construction Change Directive until the cost and time have been agreed upon by both the Owner and Contractor, in which case a Change Order is executed to supersede the Construction Change Directive. AJA Document G701 H. _ 2001. Copyright (01979,1987.2000 and 2001 by The American Institute 01 Archilecls. All rights reserved. Thl5,jocumenl was prociuced by AlA software al 09:52:02 on 05,21'2007 under Order No. 1000282438_2 which expires on 1:29'2008 and is not for resa,e. User Notes: 12422721(35) (0(,1) . . . Wold Architects and Engineers ARCHITECT (Firm name) NOT VALID UNTIL SIGNED BY THE ARCHITECT, CONTRACTOR AND OWNER. 'Oburc.."",,,, j'(,;)<...A'\vJ CONTRACTOR (Firm name) 305 Saint Peter Street Saint Paul, Minnesota 55102 :l .,.-1IJ1(~ BY gnature) ..bUI1 nfcjljdlJ1(J~ (Typed name) 51~jo1 DATE 2.:~., Go ''';, p,."""" 10 ADDRESS .~ City of Hutchinson OWNER (Firm name) III Hassan St=t Southeast, Hutchinson, Minnesota 55350 ADDRESS BY (Signature) (Typed name) DATE DATE ) 51 L.I.n AlA Documen1 G7Q1 TN - 2001. Copyrigh1 @ 1979, 1987 2000 and 2001 by The American Institute 01 Archilects. All rights reserved. ThiS documenl 2 was produced by AlA soHware at 09:52:02 on 05,'21,2CKF under Order No. 1000282438 2 which e)(pires on 1290'2008, and is not lor resale U~N~~: - (24227217361 WCd) . . . TO: Mayor & City Council FROM: Kent Exner, City Engineer RE: Consideration of Easements For Montana Street NW Extension Project (Letting No. IA/Project No. 06-0IA) DATE: June 12,2007 As previously reviewed when discussing the Montana St. NW Exntension project (Letting No. I AlProject No. 06-0IA), City staff has been in the process of attaining an easement for the installation of the proposed improvements within the westerly limits of the "New Dimensions Plating" property at 412 & 540 3'" Avenue NW. After many meetings and discussions, we believe that the City and the property owner have arrived at a fair and equitable amount for the acquisition ofa drainage/utility easemenl over 7,868 SF (0.18 Ac) of private property. Please reference the attached easement sketch and description. After receiving input from the property owner's attorney and reviewing recent City and Mn/DOT easement purchases, we propose the following: . Drainage/Utility Easement (permanent) 7,868 SF at$2.00/SF $15,736.00 Other considerations to minimize the impacts to site circulation, access to loading docks and existing parking lot capacity have been included within the scope of the construction. The property owner has communicated approval of these arrangements. Upon receiving the Council's approval, we will prepare the actual easement documents for signatures and then distribute compensation accordingly. These costs will be allocated to the above referenced project and will be drawn from the Stormwater Utility Fund. We reeommend that this Purchase of Easement for Drainage!Utilities be approved in the amount of$15,736.00. cc: Gary Plotz - City AdministratOT [Pee) ~~ \L~\ I cctI1lJITPRmRTIlNr( nIl \ ~h ~--~:j~_\ PK'WY \\ _ /' \ @ ~ I"" I."," 1,04, c.v..1'r:1(lI IlCl. l:lIlIQerr:.... -~n E) " ~ EDGE Of'" BrT1.JMINJ..tS, BITOOtO.1S SECT~ FROM V -4+50 TIl EXISTING GRAVEL SHALL BE 3" .ut-1JEAR. (\ ~?" @ 1/ '/ \ 4J ,\ ~~ / END AGGREGATE BASE: ---.. Nm DIWHTlLE CDlST STA :5+1:l. F'LI CAPS [Jol IRAINTD..E ClNCIIENTAl.) "I" '/ -< EHD~ STA "...~ -- ~ ~EDZ IF EXTG ,I: GRAVEL o Cl:tlST. DRAIN mE (C!HECT CATCH BASINS " " ~ @ ctMST. ClKRETE CROSS GUTT> @ ttIiST. 8" ctN:RE'TE DRIVE'JAY @ CDlST. 10' IJIIIE Im.omo.os ro J U \ ~ =~: := :;WlVL'J~y ,"\"r ~\ @tWIIlPlACEDRIPRN'ClASSn\,1 IJ/GEOTEXTILE TYPE n ij ~ I:; B B EXIS "" --rl ~ " I l . ^ i- ,.. 0"''' " f.l.'\~ M'RT !>\'v'i"';;' ~ ~"'1 ,~~~ (() VSEE ~ 9 I~ l~ ~ "'- 1 10' 1'10 \ ,., H\r'l I044.:'i ~ DRAINAGE " UTILITY [ASOENT o ~ / ~lft.....o I ~El~ 778' T \1 'YRC \ir" _~~~_~n""",,- ~ ._~?-::~~:~~ IIGIOO......, Ul;.0IJ..$:2!lL l'ltIlfT'[1_. Oo\n,~ ~. CITY OF II/TClltSOIl IJ J~If\o'L--= ,~, / / ,;.J <D'i \ T .... , :::::::, "" @4\ -.~ ,-- @~ I ~ ~ 7CD !ij1CDN:~T: aTG ,.. IlCP ,~ 0 VERIF"Y INVERT El.E ~ I I 0 ~ II IRD liVE N'W~ "" \\@ @ 7\0 , ;!!) /tl' NO CONSTRUCTI~ / ... TRAme / DRADWiE L umm / . EASOENT - / l ~.~. '\ t-- 1----' - ~~.. ELiv" i. ,..., ~<:g lHY ,....... I .. ~ ~, n ~~ ~ :r ..",.--- ."~, ...IT> ST~ TCI~ ,n," IlCP CL v ~ l'-l~J IlCP CI. v LOOX I,",~ I"" il ~I lUll ... PIlllfL[ STOIlW5E1IEIl UOHTAHA STREIT MOR1lt'IEST EXTDISIOIl art I'IO.ET NO. 08-01A LmJIl 110. ,. SlUT S or .. DESCRIPTIONS FOR THE CITY OF HUTCHINSON . TRAll, EASEMENT DESCRIPTION An easement for trail purposes over and across that part of the Southeast Quarter of the Southeast Quarter of Section 36, Township 117 North, Range 30 West, McLeod County, Minnesota, described as follows: Commcncing at the nortllweM COIII!::l ofsaitl Suulheasl Quarter of the Southeast Quarter; thence easterly, along the north line of said Southeast Quarter of the Southeast Quarter 778.00 feet; thence southerly, P/lTallel with the west line of said Southeast Quarter of the Southeast Quarter 36.30 feet to the intersection with the southerly line ofMINNESOT A DEPARTMENT OF TRANSPORTA nON RIGHT OF WAY PLAT NO. 43-41, according to the recorded plat thereof, and the point of beginning of the easement to be described; thence continuing southerly, parallel with said west line 89.83 feet; thence northwesterly, to a point on said southerly line of MINNESOTA DEPARTMENT OF TRANSPORTATION RIGHT OF WAY PLAT NO. 43-41 a distant 35.51 feet westerly of the point of beginning; thence easterly, along said southerly line 35.51 feet to the point of beginning. -t . ~ AREA = 1586 Square Feet .,... ~ /~~.~.J..-# ~EASEMENT DESC~O~ ' , An easement for Storm Water Pond purposes over, under and across that part of the Southeast Quarter of the Southeast Quarter of Section 36, Township 117 North, Range 30 West, McLeod County, Minnesota, described as follows: Commencing at the northwest comer of said Southeast Quarter of the Southeast Quarter; thence easterly, along the north line of said Southeast Quarter of the Southeast Quarter 898.00 feet; thence southerly, deflecting to the right 90 degrees 00 minutes 00 seconds 346.% feet to the point of beginning of the easement to be described; thence returning northerly, along the last described course 191.70 feet; thence easterly, deflecting to the right 90 degrees 21 minutes 56 seconds 42.00 feet; thence southerly, deflecting to the right 89 degrees 38 minutes 04 seconds 182.97 feet to the intersection with a line parallel with the northerly line of the former railroad right of way, as measured from the point of beginning; thence southwesterly, along said parallel line 42.84 feet to the point of beginning. EASEMENT AREA = 7868 Square Feet PELLINEN LAND SURVEYING Job No. 07015 . loCO) I ~ c""'o\~ . ( ] I Hassan Street Southeast Hutchinson, MN 55350 (320) 587-5151IFax: (320) 234-4240 City of Hutchinson APPLICATION FOR PEDDLERS, SOLICITORS, AND TRANSIENT MERCHANTS Application Type ( choose one) Date(s) of Sale 'i{;<:;/O'l :July ;13':'l 5t;A jq/ "?oOi o Solicitor ~ Transient Merchant o Peddler OParade Peddler $100.00 $100.00 $100.00 $25.00 Date of Application A licant Information 2" X 2" Picture Required Driver's License Number: Eye Color: b ( L\ P .IAl\.l . Name:-Jo ",oF -S A- Height: ~L Weight: Pennanent Address: ! 45; ~.g ! I \ \_' ' H v..:"cC-\ \..\.~ 6f\- ~ Ci~' Pennanenl Telephone: : ->-:)D Temporary Address: c:~ d:: ~;~~) ZIp ~$,'7 - '-+.749 City Stale Zip Temporary Telephone Access: Have you been convicted of any crime, misdemeanor, or violation of any mWlicipal ordinance, other than traffic violations? 0 yes a no If yes, state the nature of offense and punishment or penalty assessed therefore: . lo(~) . . . City of Hutchinson Applicationfor Peddlers, Solicitors. and Transient Merchants Page 2 of4 Location Inform tiOD State ( n 5U1t i(){oO Location Name / c; ,.; Y'r1/IJ 67)'3 SO Zi ocation Address Business Information Describe relationship between applicant and employer: 0\1(, Describe source of supply: Supplier Name Suppler Phone Number Supplier Address s~\~ City State Zip Suppler Phone Number Supplier Address Stale Zip City Supplier Name Suppler Phone Number Su lier Address Ci z, State Reference Information Provide two (2) property owners (preferably in McLeod County) for character references. - ~c;>"f\.C\?) AI \V\~{A :,:,,\+ :J ?JLf - ,~) (p:J Property neT Name Property Owner Phone Number ,'/ , C ,:JJ L "C: u,) \ "> A \/e ~ \),J If u *(-'0 ; (l "leX" MN _'0"'1 Yp H f ~ -{1;;7 (A>n'0'::-- "- ~ Ci~ 3 J-O - rft-r - 0 g % s go5 0 ~:oP"~ (M~, N:;:W tM~ Iy/ 5 ~'ope;;:;, Phon'E~e3~-o Pro r Ci Stale Zi (0 (-t=; . . . City of Hutchinson Applicationfor Peddlers, Solicitors, and Transient Merchants Page 3 of4 Reference Infonnation (continued) List last (up to three (3)) previous city(ies) where you carried on same activity: "~ \' to Slate Date(s) of Activity to State Date{s) of Activity C, \ to City State Date(s) of Activity Checklist The following items need to be completed and/or attached in order for the application to be processed: Applicationllnvestigation fee paid in full (check or money order): ayes 0 no A es 0 no I hereby certify I have completely filled out the entire above application and that the application is true, correct, and accurate. I fully understand that any person who violates any provision of the Peddlers, Solicitors, and Transient Merchants Ordinance No. 673 is guilty of a misdemeanor and upon conviction Ihereof shall be punished by a fine not exceeding $1 ,000.00 or by imprisonment for a period not exceeding 90 days or both, plus, in either case, the costs of prosecution. 1-~~;~: Internal Use Police City Council !;/ 30-- 07 Date o denied Notes: o denied Notes: H:fLicer1Sel;'AppJiCllliorWPeddler, Solicitor, Transient Doc &;\~ ') . . . TO: Mayor & City Council FROM: John Rodeberg, Director of Public Works Kent Exner, City Engineer RE: Consideration of Items for 2007 Pavement Rehabilitation Program (Letting No. 5/Project No. 07-05) DATE: June 12,2007 As previously discussed, three bids for the above referenced Letting were received by the City and opened on Tuesday, May 2200. William Mueller & Sons Inc. of Hamburg, Minnesota, submitted the apparent low bid in the amount of $319,939.35. This bid price was substantially lower than the Engineer's Estimate. City staff believes that the project was competitively bid and that the calculated property assessments are reasonable and reflective of benefits to adjacent properties. A short presentation and discussion regarding project schedules, costs and assessments will be held prior to opening the Assessment Hearing. Attached are the Resolution Adopting Assessment Roll and Resolution Accepting Bid & Awarding Contract. We recommend approving these Resolutions regarding the 2007 Pavement Rehabilitation Program. cc: Gary Plotz - City Administrator ,( 0.) . . . RESOLUTION NO. 13218 RESOLUTION ADOPTING ASSESSMENT ASSESSMENT ROLL NO. 5084 LETTING NO. 51PROJECT NO. 07-05 WHEREAS, pursuant to resolution and notice of hearing the Council has met and reviewed the proposed assessment for improvement of: Charles Street SW, Roe Avenue SE. Clark Street NE, Kay Street SW. Lea Avenue SW in their entirety and Graham Street SW from Roberts Road SW to Milwaukee Avenue SW, Milwaukee Avenue SW from 150' West of Goebel Street SW to Graham Street SW, Denver Avenue SW Median work at County Fair Marketplace entrance, School Road SW & Roberts Road SW Intersection - roadway rehabilitation and utility infrastructure installations by construction of lateral storm sewer and treatment improvements, lateral watermain. surface reclamation, grading, aggregate base. concrete median, concrete curb and gutter, sidewalk, bituminous base, bituminous surfacing, trails, landscaping, restoration and appurtenances. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON. MINNESOTA: 1. Such proposed assessment, a copy of which is attached hereto and made a part hereof, is hereby accepted, and shall constitute the speciai assessment against the lands named therein, and each tract of land therein included is hereby found to be benefited by the proposed improvement in the amount of the assessment levied against it. 2. Such assessment shall be payable in equal annual installments extending over a period of fIVe (5) years, the first of the installments to be payable on or before the first Monday in January, 2008 and shall bear interest at the rate of percent per annum as set down by the adoption of this assessment resolution. To the first installment shall be added interest on the entire assessment from November 1,2007, until the 31st day of December 2008. To each subsequent installment when due, shall be added interest for one year on all unpaid installments. 3. The owner of any property so assessed may, at any time prior to certification of the assessment to the County Auditor, pay the whole of the assessment on such property. with interest accrued to the date of payment, to the City Finance Department, except that no interest shall be charged if the entire assessment is paid by the 15th day of November, 2007; and he may, at any time thereafter, pay to the City Finance Department the entire amount of the assessment remaining unpaid. with interest accrued to the 31 st day of December, of the year in which such payment is made. Such payment must be made before November 15, or interest will be charged through December 31, of the next succeeding year. 4. The Administrator shall forthwith transmit a certified duplicate of this assessment to the County Auditor to be extended on the property tax lists of the County, and such assessment shall be collected and paid over in the same manner as other municipal taxes. Adopted by the Council this 12th day of June 2007. Mayor City Administrator ,CiA) . . . RESOLUTION NO. 13219 RESOLUTION ACCEPTING BID AND AWARDING CONTRACT LETTING NO.5 PROJECT NO. 07.(J5 Whereas, pursuant to an advertisement for bids for the fumishing of all labor and material for the improvement of: Charles Street SW, Roe Avenue SE, Clark Street NE, Kay Street SW, Lea Avenue SW in their entirety and Graham Street SW from Roberts Road SW to Milwaukee Avenue SW, Milwaukee Avenue SW from 150' West of Goebel Street SW to Graham Street SW, Denver Avenue SW Median work at County Fair Marketplace entrance, School Road SW & Roberts Road SW Intersection - roadway rehabilitation and utility infrastructure installations by conStruction of lateral storm sewer and treatment improvements, lateral watermain, surface reclamation, grading, aggregate base, concrete median, concrete curb and gutter, sidewalk, bituminous base, bituminous surfacing, trails, landscaping, restoration and appurtenances. bids were received, opened and tabulated according to law, and the following bids were received complying with the advertisement: Bidder Wm Mueller & Sons Inc of Hamburg MN Duininck Bros Inc of Prinsburg MN Knife River Inc of Sauk Rapids MN Amount Bid $ 319,939.85 $ 383,733.60 $ 385,030.56 and whereas, It appears that Wm Mueller & Sons Inc of Hamburg MN is the lowest responsible bidder. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: 1. The mayor and city administrator are hereby authorized and directed to enter into a contract with Wm Mueller & Sons Inc of Hamburg MN in the amount of $319,939.85 in the name of the City of Hutchinson, for the improvement contained herein, according to the plans and specifications therefor approved by the City Council and on file in the office of the City Engineer. 2. The City Engineer is hereby authorized and directed to return forthwith to all bidders the deposits made with their bids, except that the deposits of the successful bidder and the next lowest bidder shall be retained until a contract has been signed, and the deposit of the successful bidder shall be retained until satisfactory completion of the contract. Adopted by the Hutchinson City Council this 12th day of June 2007. Mayor City Administrator 1[4) . . . MEMORANDUM Date: June 7, 2007 To: Honorable Mayor & City Council From: Miles R. Seppelt Economic Development Director RE: Agenda Items The Hutchinson EDA will have two items on the Council agenda for your consideration. Resolution FindinQ BuildinQs Structurallv Substandard (Cenex Proiectl The EDA is working on a project to acquire and clean-up the Cenex Fertilizer plant on 3cd Avenue NW. To help finance this project the EDA is looking at the possibility of establishing a Redevelopment Tax Increment Financing (TIF) district at some point in the future, once we have a developer on board to do a project there. To establish the Redevelopment TIF District in the future, the City Council needs to make a finding that the site does, in fact, meet the qualifications for that type of district. Enclosed is a report that staff has prepared that documents that the site does qualify to be designated as a Redevelopment TIF District In addition, there is a resolution in your packet to that effect. I'll have a very short presentation at the City Council meeting and will be available to answer any questions you may have. Establishment of Economic Development TIF District (Spec Buildinq Proiectl In the Industrial Park the EDA is working to establish its first Industrial "Spec" Building. To help finance the project we would like to establish a 9-year Economic Development TIF District. When we get a tenant in the building they will pay their proportional share of the property taxes. An Economic Development TIF district will allow us to "capture" those property taxes and direct those monies towards certain qualifying project costs. There will be a public hearing at the Council meeting, during which I will make a short presentation on the project and answer any questions that may arise. If you have any questions or need additional information, please give me a call at 234- 4223. Thank for your time and consideration. 1(~) . . . As of June 7, 2007 Draft for Public Hearing MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO.4 and the TAX INCREMENT FINANCING PLAN for the establishment of TAX INCREMENT FINANCING DISTRICT NO. 4-15 (an economic development district) within DEVELOPMENT DISTRICT NO.4 ~ ~!- CITY OF HUTCHINSON MCLEOD COUNTY STATE OF MINNESOTA Public Hearing: June] 2,2007 Adopted: . EHLERS Prepared by: EHLERS & ASSOCIATES. INC. 3060 Centre Pointe Drive. Roseville, Minnesota 55113-1105 & ASSOCIATES INC 651-<;97-<3500 fax: 651-697-<3555 l'MW.ehlers-inc.com "1 (It? ) TABLE OF CONTENTS (for reference purposes only) . SECTION I - MODIFICA nON TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO.4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 1-1 Foreword ............................................................. 1-1 Subsection 1.1 Background. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 1-1 Subsection 1.2 Modifications to the Development Program .................... 1-1 Subsection 1.3 Boundaries of Development District NO.4. . . . . . . . . . . . . . . . . . . .. 1-1 SECTION /1- TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 4-15 ....................... 2-1 Subsection 2-1. Foreword............................................ 2-1 Subsection 2-2. Statutory Authority. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _ 2-1 Subsection 2-3. Statement of Objectives ................................. 2-1 Subsection 2-4. Development Program Overview ............................ 2-1 Subsection 2-5. Description of Property in the District and Property To Be Acquired . 2-2 Subsection 2-6. Classification of the District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 2-2 Subsection 2-7. Duration of the District. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 2-3 Subsection 2-8. Original Tax Capacity, Tax Rate and Estimated Captured Net Tax Capacity Value/Increment and Notification of Prior Planned Improvements. . . . . . . . . . . . . . .. 2-3 Subsection 2-9. Sources of Revenue/Bonded Indebtedness ................ 2-4 Subsection 2-10. Uses of Funds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 2-5 Subsection 2-11. Business Subsidies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 2-6 Subsection 2-12. County Road Costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 2-7 . Subsection 2-13. Estimated Impact on Other Taxing Jurisdictions. . . . . . . . . . . . . . . .. 2-7 Subsection 2-14. Supporting Documentation ................................. 2-9 Subsection 2-15. Definition of Tax Increment Revenues ........................ 2-9 Subsection 2-16. Modifications to the District................................ 2-10 Subsection 2-17. Administrative Expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 2-10 Subsection 2-18. Limitation of Increment ................................... 2-11 Subsection 2-19. Use of Tax Increment .................................... 2-12 Subsection 2-20. Excess Increments .................................... 2-12 Subsection 2-21. Requirements for Agreements with the Developer... . . . . . .' . . .. 2-13 Subsection 2-22. Assessment Agreements ................................. 2-13 Subsection 2-23. Administration of the District. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 2-13 Subsection 2-24. Annual Disclosure Requirements ........................... 2-13 Subsection 2-25. Reasonable Expectations ................................. 2-13 Subsection 2-26. Other Limitations on the Use of Tax Increment. . . . . . . . . . . . . . . .. 2-14 Subsection 2-27. Summary..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 2-14 APPENDIX A PROJECT DESCRIPTION ............ . . . . _ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. A-t APPENDIX B MAP OF DEVELOPMENT DISTRICT NO.4 AND THE DISTRICT. . . . . . . . . . . . . . . .. B-1 APPENDIX C DESCRIPTION OF PROPERTY TO BE INCLUDED IN THE DISTRICT. . .. . . . . . . . .. C-1 APPENDIX D ESTIMATED CASH FLOW FOR THE DISTRICT ........................ ~1 . . . . APPENDIX E MINNESOTA BUSINESS ASSISTANCE FORM .................... E-1 APPENDIX F FINDINGS INCLUDING BUT/FOR QUALIFiCATIONS..... _.................... F-1 SECTION 1- MODIFICA nON TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO.4 Foreword The following text represents a Modification to the Development Program for Development District No.4. This modification represents a continuation of the goals and objectives set forth in Ihe Development Program for Development District No.4. Generally, the substantive changes include the establishment of Tax Increment Financing District No.4-IS. Subsection 1.1 Background The City of Hutchinson (the "City") has, pursuant to Minnesota Statutes ("M.S "), Sections 469.124 to 469.134, inclusive, as amended (the "Development District Act"), approved a Developmenl Program for Development District No.4 (the "Development Program") in the City. This document was prepared to modify the Development Program that was adopted by the City Council in May, 1980 and modified on April 24, 1990, December 30, 1991, May 13, 1997, June 8, 2003, June 29, 2004, and August 23, 2005. The changes herein are intended to clarify the existing Development Program and modifications already on file with the City of Hutchinson. Subsection 1.2 Modifications to the Development Program The City amends the Development Program pursuant 10 the Development District Acl to clarify that the City is authorized to undertake activities with respect to the development of the following parcels: 23.261.0050 and 23.261.0060, which will be included in the Tax Increment Financing District No. 4-15. Subsection 1.3 Boundaries of Development District No.4 The boundaries of Development District No.4 are being expanded to include the following parcels: 23.261.0050 and 23.261.0060. City of Hutchinson Modification to the Development Program for Development District No_ 4 1-1 . . . . . . SECTION /I- TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 4-15 Subsection 2-1. Foreword The City of Hutchinson (the "City"), staff and consultants have prepared the following information to expedite the establishment of Tax Increment Financing District No. 4-15 (the "District"), an economic development tax increment financing district, located in Development District No.4. Subsection 2-2. Statutory Authority Within the City, there exist areas where public involvement is necessary to cause development or redevelopment to occur. To this end, the City has certain statutory powers pursuant to Minnesota Statutes ("MS."), Sections 469.124 to 469.134, inclusive, as amended, and MS.. Sections 469.174 to 469.1799, inclusive, as amended (the "Tax Increment Financing Act" or "TIF Act"), to assist in financing public costs related to this project This section contains the Tax Increment Financing Plan (the "TIF Plan") for the District Other relevant information is contained in the Modification to the Development Program for Development District No.4, Subsection 2-3. Statement of Objectives The District currently consists ofa portion of two parcels ofland and adjacent and internal rights-of-way. The District is being created to facilitate construction of a 18,000 square foot building in the industrial park in the City of Hutchinson. The building and surrounding property will be in the proposed TiF Districl, and will be marketed to a manufacturing firm or other qualiJying business. The building will be constructed immediately adjacent to a ] 2,000 square foot building and the will share a lot line. The two buildings will have separate ownership and be on separale parcels. Please see Appendix A for further project information. Contracts for this have not been entered inlo at the time of preparation of this TIF Plan, but development is likely to oc<;ur in 2007. This TIF Plan is expected to achieve many ofthe objeclives outlined in the Development Program for Development District No.4. The activities contemplated in the Modification to the Development Program and the TIF Plan do not preclude the undertaking of other qualified development or redevelopment activities. These activities are anticipated to occur over the life of Development District No.4 and the District. Subsection 2-4. Development Program Overview ]. Property 10 be Acquired - Selected property located within the District may be acquired by the City and is further described in this TIF Plan. 2. Relocation - Relocation services, to the extent required by law, are available pursuant to MS., Chapter 117 and other relevant state and federal laws. 3. Upon approval ofa developer's plan relating to the project and completion of the necessary legal requirements, the City may sell to a developer selected properties that it may acquire within the District or may lease land or facilities to a developer. 4. The City may perform or provide for some or all necessary acquisition, construction, relocation, demolilion, and required utililies and public street work within the District City of Hutchinson Tax Increment Financing Plan fOT Tax Increment Financing District No_ 4-15 2.J . 5. The City proposes infrastructure facilities within the District, no additional open space within the District, no environmental controls specific to the District, proposed reuse of private property as a manufacturing facility and continued operation of Development District No. 4 after the capital improvements within Development District No.4 have been completed. Subsection 2-5. Description of Property in the District and Property To Be Acquired The District encompasses all property and adjacent righls-of-way and abutting roadways idenlified by the parcels listed in Appendix C of this TIF Plan. Please also see the map in Appendix B for further information on the locarion of the District. The Hutchinson EDA currently owns the property to be included in the District. Subsection 2-6. Classification of the District The City, in determining the need to create a tax increment financing district in accordance with MS., Sections 469.174 to 469.1799, as amended, inclusive, finds thatthe District, to be established, is an economic development district pursuant to MS, Section 469.174, Subd. 12 as defined below: "&onomic development district'l means a type aftax incrementfinancing district which consists of any project, or portions of a project, which the authority finds to be in the public interest because: (1) it will discourage commerce, industry, or manufacturingfrom moving their operations to another state or municipality; or (2) it will result in increased employment in the state; or (3) it will result in preservation and enhancement of the tax base of the state. . The District is in the public interest because it will meet Ihe statutory requirement from clause 2 and 3. Pursuant to MS., Section 469.176, Subd. 4c, revenue derived from tax increment trom an economic development district may not be used to provide improvements, loans, subsidies, grants, interest rate subsidies, or assistance in any form 10 developments consisting of buildings and ancillary facilities, ifmore than 15 percent of the buildings and facilities (determined on the basis of square footage) are used for a purpose other than: (I) The manufacturing or production of tangible personal property, including processing resulting in the change in condition of the property; (2) Warehousing, storage, and distribution of tangible personal property, excluding retail sales; (3) Research and development related to the activities listed in items (1) or (2); (4) Telemarkeling if that activity is the exclusive use of the property; (5) Tourism facilities; or (6) Qualified border retail facilities; (7) Space necessary for and related to the activilies listed in items (I) to (6) In meeting the statutory criteria the City relies on the following facts and findings: The facilities in Ihe Dislrict meet the conditions of Purposes 1,2, and 7. The District is being created to assist in the construction of a spec facility for a business to be named at a later date. City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-15 2-2 . . . . Pursuant to MS., Sections 469.176 Subd. 7, the District does not contain any parcel or part of a parcel that qualified underthe provisions of MS., Sections 273.111 or 273.112 or Chapter 473Hfor taxes payable in any of the five calendar years before the filing of the request for certification of the District. Subsection 2-7. Duration of the District Pursuant to MS, Section 469.175, Subd. 1, and MS, Section 469.176, Subd. 1, the duration of the District must be indicated wilhin the TIF Plan. Pursuant to MS, Section 469.176, Subd. 1 b, the duration of the District will be 8 years after receipt of the first increment by Ihe City. The date of receipt by the City of the first tax incremenl is expecled to be 2010. Thus, it is estimaled that Ihe District, including any modifications of the TIF Plan for subsequenl phases or other changes, would terminate after 2018, or when Ihe TIF Plan is satisfied. I f increment is received in 2009, Ihe term ofthe Dislrict will be 20 I 7. The City reserves the right to decertifY the District prior to the legally required date. Subsection 2-8. Original Tax Capacity, Tax Rate and Estimated Captured Net Tax Capacity Value/Increment and Notification of Prior Planned Improvements Pursuantto MS, Section 469.174, Subd. 7 and MS, Section 469.177, Subd. 1, the Original NeITax Capacity (ONTC) as certified for the District will be based on the market values placed on the property by the assessor in 2006 for taxes payable 2007. Pursuant to MS, Section 469.177, Subds. 1 and 2, the County Auditor shall certifY in each year (beginning in the payment year 2008) the amount by which Ihe original value has increased or decreased as a resull of: 1. Change in tax exempt status of property; 2. Reduclion or enlargement of the geographic boundaries of the district; 3. Change due to adjustments, negotiated or court-ordered abatements; 4. Change in the use of the property and classification; 5. Change in state law governing class rates; or 6. Change in previously issued building permits. In any year in which the current Net Tax Capacity (NTC) value of the District declines below the ONTC, no value will be captured and no tax increment will be payable to the City. The original local tax rate for the District will be the local tax rate for taxes payable 2008, assuming Ihe request for certificalion is made after June 30, 2007. The ONTC and the Original Local Tax Rate for the District appear in the table on the following page. Pursuant to MS, Section 469.174 Subd. 4 and MS., See/ion 469.177, Subd. 1, 2, and 4, the estimated Captured Net Tax Capacity (CTC) of the District, within Development District No.4, upon completion of Ihe project, will annually approximate lax increment revenues as shown in the table on the following page. The City requests 100 percent of the available increase in tax capacity for repayment of its obligations and current expenditures, beginning in the tax year payable 2009. The ProjecI Tax Capacity (PTC) listed is an estimale of values when the project is completed. City of HutchinS<ln Tax Increment Financing Plan for Tax Increment Financing District No. 4-] 5 2.3 Project Estimated Tax Capacity upon Com pletion (pTC) Original Estimated Net Tax Capacity (ONTC) Estimated Captured Tax Capacity (CTC) $29,250 $501 . Original Local Tax Rate $28,749 1.36909 Pay 2007 Estimated Aanoal Tax Increment (CTC x Local Tax Rate) Percent Retained by tbe City $39,360 tOO%, Pursuant to MS., Section 469.177, Subd. 4, Ihe City shall, after a due and diligent search, accompany its request for certification to the County Auditor or its nolice of the District enlargement pursuant to MS, Section 469.175, Subd. 4, with a listing of all properties within the District or area of enlargement for which building permits have been issued during the eighteen (18) months immediately preceding approval of the TIF Plan by the municipality pursuanl to MS., Section 469.175, Subd. 3. The County Auditor shall increase the original net tax capacity of the District by the net tax capacity of improvements for which a building permit was issued. The City has reviewing the area to be included in tbe District and determined that no buildiog permits bave been issued do ring tbe 18 montbs immediately preceding approval ofthe TIF Plan by tbe City. Subsection 2-9. Sources of Revenue/Bonded Indebtedness Public improvement costs, acquisitiool utilities, parking facilities, streets and sidewalks, and site preparation costs and other costs outlined in the Uses of Funds will be financed primarily through the annual collection of tax increments. The City reserves the right to use other sources of revenue legally applicable to the City and the T1F Plan, including, bul not limited to, special assessments, general property taxes, state aid for road maintenance and construction, proceeds from the sale ofland, other contributions from the developer and investment income, to pay for the estimaled public costs. . The City reserves the right 10 incur bonded indebtedness or other indebtedness as a result of the T1F Plan. As presently proposed, the projecI will be financed by a bond issue and/or a pay-as-you-go note andlor an inlerfund loan. Additional indebtedness may be required to finance other authorized activities. The total principal amount of bonded indebtedness. including a general obligation (GO) T1F bond, or other indebtedness related to the use of tax increment financing will not exceed $1 ,875,000 without a modification to the TIF Plan pursuant to applicable statutory requirements. It is estimated that $375,000 in bonded indebtedness will be financed with tax increment revenues. The remaining indebtedness of$ I ,500.000 will be repayed from other revenues, such as lease revenues, special assessments, taxes or other payments. The debt will be bifurcated and tax increment shall not be used to repay Ihe portion of debt that finances non- qualifying costs and other revenue sources will not be revenues of the Tax Incremenl district. This provision does not obligate the City to incur debt The City will issue bonds or incur other debt only upon Ihe determination that such action is in the best interest of the City. The City may also finance the ac- tivities to be undertaken pursuant to the T1F Plan through loans from funds of the City or to reimburse the developer on a "pay-as-you-go" basis for eligible costs paid for by a developer. The estimated sources of funds for the District are contained in the table on Ihe following page. City of HUlchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4~] 5 2-4 . . SOURCES OF FUNDS TOTAL Tax Increment $375,000 Revenue $0 PROJECT REVENUES $375,000 Interfund Loans $375,000 Transfers $0 Bond Principal $1,500,000 TIF Note Principal $0 The olher financing sources list above are included for purposes of OS A reporting for the TIF District. It is not intended to be cumulative. Transfers are included in case money is moved from one fund to another before an expenditure. Subsection 2-10. Uses of Funds . Currently under consideration for the Districl is a proposal to facilitate construction of a 30,000 square foot building in their industrial park. A private company will own and occupy 12,000 square feet, which will not be included in the TIF District. The remaining 18,000 square feet and surrounding property will be in the proposed TIF District, and will be marketed to a manufacturing firm or other qualifYing business. The City has determined that it will be necessary to provide assistance to the project for certain costs. The City has studied Ihe feasibility of the development or redevelopment of property in and around the District. To facilitate the establishment and development or redevelopment ofthe Districl, this TIF Plan authorizes the use of tax increment financing to pay for Ihe cost of certain eligible expenses. The estimate of public costs and uses of funds associaled with Ihe Dislrict is outlined in Ihe following table. PROJECT COSTS TOTAL TOTAL $0 $90,000 $35,000 $115,000 $0 $97,500 $37,500 $375,000 $375,000 $0 $1,500,000 $0 USES OF FUNDS Land/Building Acquisition Site Improvements/Preparation Public Utilitiesllnfrastructure Public Parking Facilities Streets and Sidewalks Interest Administrative Costs (up to 10%) lnterfund Loans Transfers Bond Principal TIF Nole Principal . City of Hutchinson Tax Increment Financing Plan for Tax lncrement Financing District No. 4-15 2-5 The other financing uses listed above is included for purposes of OS A reporting for the TIF District. It is not intended to be cumulative. Transfers are included in case money is moved from one fund to another before an expenditure. TIF is expected to be used for the project costs listed above, which is a not-to-exceed budget rather!han an expected budget of costs. Pursuant to MS., Section 469.175, Subd. 1 (5), it is estimated that the cost of improvements, including administrative expenses which will be paid or financed with tax increments, will equal $375,000. For purposes of OS A reporting forms, it is estimated that the cost of improvements, including financing which will be paid for with tax increment will equal $1,875,000 as is presented in the previous budget. Estimated costs associated wi!h the District are subject to change among categories without a modification to Ihis TIF Plan. The cost of all activities to be considered for tax increment financing will not exceed, without formal modificalion, the budget above pursuant to the applicable statutory requirements. Pursuant to MS., Section 469.1763, Subd. 2, no more !han 20 percent oflhe tax increment paid by property within the District will be spent on activilies related to development or redevelopment outside oflhe District but within !he boundaries of Development District No.4, (including administrative costs, which are considered to be spent outside of the District) subject to the limitations as described in this TIF Plan. Subsection 2-11. Business Subsidies Pursuant to MS. Sections 116J.993, Subd. 3, the following forms of financial assistance are not considered a business subsidy: (I) (2) A business subsidy' ofless than $25,000; Assistance that is generally available to all businesses or to a general class of similar businesses, such as a line of business, size, location, or similar general criteria; Public improvements to buildings or lands owned by Ihe state or local government that serve a public purpose and do not principally benefil a single business or defined group of businesses at the time the improvements are made; Redevelopment property polluled by contaminants as defined in MS., Section 116J.552, Subd. 3; Assistance provided for the sole purpose of renovating old or decaying building stock or bringing it up to code and assistance provided for designated historic preservation districts, provided that the assistance is equal to or less than 50% of the total cost; Assistance to provide job readiness and training services if the sole purpose ofthe assistance is to provide those services; Assistance for housing; Assistance for pollution control or abatemenl, including assistance for a tax increment financing hazardous substance subdistrict as defined under MS., Section 469.174, Subd. 23; Assistance for energy conservation; Tax reductions resulting from conformity with federal tax law; Workers' compensation and unemployment compensation; Benefits derived from regulation; Indirect benefits derived from assistance to educational institutions; Funds from bonds allocated under chapter 474A, bonds issued 10 refund outstanding bonds, and bonds issued for the benefit of an organization described in section 5DI (c) (3) of the Internal Revenue Code of 1986, as amended through December 31, 1999; Assistance for a collaboration between a Minnesota higher education institution and a business; Assistance for a tax increment financing soils condition district as defined under MS., Section 469.174, Subd. 19; (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) City of Hutchinson Tax Increment Financing Plan for Tax lncremenl Financing District No. 4-15 2-6 . . . . . . (17) Redevelopment when the recipient's investment in the purchase of the site and in site preparalion is 70 percent or more of the assessor's current years estimated market value; (18) General changes in tax increment financing law and other general tax law changes of a principally technical nature. (19) Federal assistance untillhe assistance has been repaid to, and reinvested by, the state or local government agency; (20) Funds from dock and whan bonds issued by a seaway port authority; (21) Business loans and loan guarantees of $75,000 or less; and (22) Federal loan funds provided through the United States Department of Commerce, Economic Development Administration. The City will comply with MS., Section 1161.993 to 1161.995 to the extent the tax increment assistance under this TIF Plan does not fall under any of the above exemptions. Subsection 2-12. County Road Costs Pursuant to MS., Section 469. J 75, Subd. J a, the county board may require the City to pay for all or part of the cost of county road improvements if the proposed development 10 be assisted by tax increment will, in the judgement of the county, substanlially increase the use of county roads requiring construction of road improvements or other road costs and if the road improvements are not scheduled within the next five years under a capital improvement plan or within five years under another county plan. If the county elects to use increments to improve county roads, il must notify the City within forty-five days of receipt of this TIF Plan. In the opinion oflhe City and consultants, the proposed development outlined in this TIF Plan will have little or no impacI upon county roads, therefore the TIF Plan was not forwarded to the county 45 days prior to the public hearing. The City is aware that the county could claim thaI tax increment should be used for county roads, even after the public hearing. Subsection 2-13. Estimated Impact on Other Taxing Jurisdictions The estimated impact on other taxing jurisdictions assumes that the redevelopmenl contemplaled by the TIF Plan would occur without the creation of the District. However, the City has determined that such development or redevelopment would not occur "but forn tax increment financing and that, therefore, the fiscal impact on other taxing jurisdictions is $0. The estimated fiscal impact of the District would be as follows iflhe "but for" test was not met: City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4- J 5 2-7 IMPACT ON TAX BASE . McLeod County City of Hutchinson Hutchinson Public School District ISO No. 423 2006/Pay 2007 Total Net Tax Capacity 28,514,968 9,504,574 13,558,129 Estimated Captured Tax Capacity (CTC) Upop Completion 28,749 28,749 28,749 Percent of CTC to Entitv Total 0.1008% 0.3025% 0.2120% IMPACT ON TAX RATES Pay 2007 Percent Potential Extension Rates of Total CTC Taxes McLeod County 0.629440 45.98% 28,749 18,096 City of Hutchinson 0.561040 40.98% 28,749 16,129 Hutchinson Public School 0.150260 10.98% 28,749 4,320 District ISO No. 423 Other 0.028350 2.07% 28.749 815 Total 1.369090 100.00% 39,360 . The estimales listed above display Ihe captured tax capacity when all construction is completed. The tax rate used for calculations is the actual Pay 2007 rate. The total net capacity for the entities listed above are based on actual Pay 2007 figures. The Districl will be certified under the actual Pay 2008 rales, which were unavailable at the time this TlF Plan was prepared. Pursuant to M.S. Section 469.175 Subd. 2(b): (1) Estimate of total tax increment. It is estimated that the total amount of tax increment that will be generated over the life ofthe District is $375,000; (2) Probable imoact of the District on city provided services and ability 10 issue debt. The probable impacl ofthe District on police protection is not expected to be significant. With any addition of new businesses, there is always an opportunity for an increase in police calls for service; however, the City does nol expect an increase due to the proposed development. While new developments add an increase in traffic, and addilional overall demands to the call load. The City does not expect that the proposed development, in and of ilself, will necessitate new capiJal investment in vehicles or other police equipment. The police department's total operating budget for 2007 is $2,909,593. The probable impact of the District on fire protection is not expected 10 be significant. Typically new buildings generate few calls, if any, and are of superior construction. The fire department's total operating budgel for 2007 is $434,510. The impact of the District on public infrastructure is expected 10 be minimal. The proposed development is estimated to contribute $5,100 in water access charges and $6,700 in sewer access City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-15 2-8 . . . . charges. It is anticipated that sanitary sewer and water hook-up costs will be paid through special assessments against the property. It is also anticipated that a City street extension will be added for the proposed development; special assessments against the property will fund the improvements. Annual costs for plowing, street sweeping, maintenance, etc. are estimated to cost approximately $838. The probable impact of any District general obligation lax incremenl bonds on the ability to issue debt for general fund purposes is expected to be minimal. It is not anticipated that there will be any general obligation debt issued in relation to this project, therefore there will be no impact on the City's ability to issue future debt or on the City's debt limit. The City does anticipate issuing taxable lease revenue bonds for the project. (3) Estimated amount of tax increment attributable 10 school district levies. It is estimated Ihat the amount of tax increments over the life of the District that would be attributable to school district levies, assuming the school district's share of the total local tax rate for all taxing jurisdiclions remained the same is $38,880; (4) Estimated amount of tax increment attributable to county levies. It is eSlimated that the amount of tax increments over the life of the District that would be attributable to county levies, assuming the county's share of the lotallocal tax rate for all taxing jurisdictions remained the same is $162,864; (5) Additional information requested bv the county or school district. The City is not aware of any standard questions in a county or school district written policy regarding tax incremenl districts and impact on county or school district services. The county or school district must request additional informalion pursuant to MS See/ion 469.175 Subd. 2(6) within IS days after receipt of the tax increment financing plan. No requesls for additional information from the county or school district regarding the proposed development for the District have been received. Subsection 2-14. Supporting Documentation Pursuant to MS See/ion 469.175 Subd 1, clause 7 the T1F Plan musl contain identification and descriplion of studies and analyses used to make the determination set forth in MS See/ion 469.175 Subd 3, clause (b)(2) and the findings are required in the resolution approving the District. Following is a list of reports and studies on file at Ihe City that support the Authority's findings: But For Analysis, provided by the City of Hutchinson. Subsection 2-15. Definition of Tax Increment Revenues Pursuant to MS., Section 469.174, Subd. 25, tax increment revenues derived from a tax increment financing district include all of the following potential revenue sources: I. Taxes paid by the captured neltax capacity, but excluding any excess taxes, as computed under MS, See/ion 469.177; 2. The proceeds from the sale or lease of property, tangible orinlangible, to the extent the property was purchased by Ihe Authority with tax incremenls; 3. Principal and interest received on loans or other advances made by the Authority with tax increments; 4. Interest or other investment earnings on or from tax increments; City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-15 2-9 5. Repaymenls or return of lax incremenls made to the Authority under agreemenls for districts for which !he request for certificalion was made after August 1, 1993; and 6. The market value homestead credit paid to the Authority under MS., Section 273.1384. . Subsection 2-16. Modifications to the District In accordance with MS., Section 469.175, Subd. 4, any: 1. Reduction or enlargement of the geographic area of the District, if the reduction does not meet the requiremenls of MS., Section 469.175, Subd. 4(e); 2. Increase in amount of bonded indebtedness to be incurred; 3. A determination to capitalize interesl on debt if that determination was not a part ofthe original T1F Plan; 4. Increase in the portion of the captured net lax capacity to be retained by the City; 5. Increase in the estimate of the cost ofthe project, including administrative expenses, Ihat will be paid or financed with tax increment from the District; or 6. Designation of additional property to be acquired by the City, shall be approved upon the notice and after the discussion, public hearing and findings required for approval ofthe original TIF Plan. Pursuant to MS., Section 469.175 Subd. 4(f), the geographic area of the District may be reduced, but shall not be enlarged after five years following the date of certification of the original net lax capacity by the county auditor. If an economic development district is enlarged, the reasons and supporting facts for Ihe determination that the addition to the district meels the criteria of MS., Section 469.174, Subd. 12 must be documented in writing and retained. The requiremenls of this paragraph do not apply if (I) the only modification is elimination of parcel(s) from the District and (2) (A) the current net tax capacity of the parcel(s) eliminated from the Districl equals or exceeds the net lax capacity ofthose parcel(s) in the District's original net lax capacity or (B) the City agrees that, notwithstanding MS., Section 469.177, Subd. 1, the original net lax capacity will be reduced by no more than the current net tax capacity of the parcel(s) eliminated from the Dislrict. . The City must notify Ihe County Auditor of any modification that reduces or enlarges the geographic area of the District. Modifications to the District in the form of a budget modification or an expansion of the boundaries will be recorded in the TIF Plan. Subsection 2-17. Administrative Expenses In accordance with MS., Section 469.174, Subd. 14, administrative expenses means all expenditures oflhe City, other than: 1. Amounts paid for the purchase ofland; 2. Amounts paid to conlraclors or olhers providing materials and services, including architectural and engineering services, directly connected with Ihe physical development of the real property in the project; 3. Relocalion bene fils paid to or services provided for persons residing or businesses located in the project; or 4. Amounts used 10 pay principal or interest on, fund a reserve for, or sell at a discount bonds issued pursuant to M.S., Section 469.178; or 5. Amounts used to pay other financial obligations to the extent those obligations were used to finance COSIs described in clauses (1) to (3). City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-15 2-]0 . . For districts for which the request for certification were made before August 1, 1979, or after June 30, 1982, administrative expenses also include amounts paid for services provided by bond counsel, fiscal consultants, and planning or economic development consultants. Pursuant to MS., Section 469.176, Subd. 3, tax incremenl may be used to pay any authorized and documented administralive expenses for the District up to but not to exceed 10 percent of the total estimated tax increment expenditures authorized by the TIF Plan or the total tax increments, as defined by MS. Section 469.174, Subd. 25, clause (1), from Ihe District, whichever is less. Pursuant to MS, Section 469. J 76, Subd. 4h, tax increments may be used to pay for the County's actual administrative expenses incurred in connection with the District. The county may require payment of those expenses by February 15 of the year following the year the expenses were incurred. Pursuant to MS, Section 469. 177, Subd. II, the County Treasurer shall deducI an amount (currently .36 percent) of any increment distributed to the City and the County Treasurer shall pay the amount deducted to the State Treasurer for deposit in the state general fund to be appropriated to the State Auditor for the cost of financial reporting of tax increment financing information and the cost of examining and auditing authorities' use of tax increment financing. This amounl may be adjusted annually by the Commissioner of Revenue. Subsection 2-18. Limitation of Increment The lax increment pledged to the payment of bonds and inlerest thereon may be discharged and the District may be terminated ifsufficient funds have been irrevocably deposited in the debt service fund or other escrow account held in trust for all outstanding bonds to provide for Ihe payment of Ihe bonds al maturity or redemption date. . Pursuant to MS, Section 469.176, Subd. 6: if after four years from the date of certification of the original net tax capacity of the tax increment financing district pursuant to MS, Section 469.177, no demolition, rehabilitation or renovation of property or other site preparation, including qualified improvement of a street adjacent to a parcel but not installation of utility service including sewer or water systems, has been commenced on a parcel located within a tax increment financing district by the authority or by the owner of the parcel in accordance with the tax incrementfinancingplan, no additional tax increment may be takenfrom that parcel and the original net tax capacity of that parcel shall be excluded from the original net tax capacity of the tax increment financing district. If the authority or the owner of the parcel subsequently commences demolition, rehabilitation or renovation or other site preparation on that parcel including qualified improvement of a street adjacent to that parcel, in accordance with the tax increment financing plan, the authority shall certify to the county auditor that the activity has commenced and the county auditor shall certify the net tax capacity thereof as most recently certified by the commissioner of revenue and add it to the original net tax capacity of the tax increment financing district. The county auditor must enforce the provisions of this subdivision. The authority must submit to the county auditor evidence that the required activity has taken place for each parcel in the district. The evidence for a parcel must be submitted by February I of the fifth year following the year in which the parcel was certified as included in the district. For purposes of this subdivision, qualified improvements of a street are limited to (1) construction or opening of a new street, (2) relocation of a street, and (3) substantial reconstruction or rebuilding of an existing street. The City or a property owner musl improve parcels within the District by approximately June, 2011 and report such aelions to the County Auditor. . City of Hutchinson Tax [ncrement Financing Plan for Tax Increment Financing District No. 4-15 2-11 Subsection 2-19. Use of Tax Increment . The Cily hereby determines that it will use 100 percent of the captured net tax capacily of taxable property located in the District for the following purposes: 1. To pay the principal of and interest on bonds issued to finance a project; 2. To finance, or otherwise pay the capital and administration costs of Development District No.4 pursuant to the MS., Sections 469.124 to 469.134; 3. To pay for project costs as identified in the budget set forth in the TlF Plan; 4. To finance, or otherwise pay for other purposes as provided in MS., Section 469.176, Subd. 4; 5. To pay principal and interest on any loans, advances or other payments made 10 or on behalf ofthe Cily or for the benefit of Development District No.4 by a developer; 6. To finance or olherwise pay premiums and other costs for insurance or other securily guaranteeing the paymenl when due of principal of and interest on bonds pursuant to the TIF Plan or pursuant to MS., Chapter 462C. M.s., Sections 469.152 through 469.165, and/or MS., Sections 469.178; and 7. To accumulate or maintain a reserve securing the payment when due of the principal and inlerest on the tax increment bonds or bonds issued pursuant to MS., Chapter 462C, MS., Sections 469.152 through 469.165, and/or MS, Sections 469.178. These revenues shall not be used to circumvent any levy limitations applicable to the Cily nor for other purposes prohibited by MS., Section 469.176, Subd. 4. Tax increments generated in the District will be paid by McLeod Counly 10 the Cily for the Tax Increment Fund of said District. The Cily will pay to the developer(s) annually an amount not to exceed an amount as specified in a developer1s agreement to reimburse the costs of land acquisition, public improvements, demolition and relocation, site preparation, and administration. Remaining increment funds will be used for Cily administration (up to 10 percent) and the costs of public improvemenl activities outside the District. . Subsection 2-20. Excess Increments Excess increments, as defined in M.s., Section 469.176, Subd. 2, shall be used only to do one or more of the following: I. Prepay any outstanding bonds; 2. Discharge the pledge of tax increment for any outstanding bonds; 3. Pay into an escrow account dedicated to the payment of any outstanding bonds; or 4. Return the excess to Ihe Counly Auditor for redistribution to the respective taxing jurisdictions in proportion to their local tax rates. The Cily must spend or return the excess increments under paragraph (c) within nine months after the end of the year. In addition, the Cily may, subject to the limitalions set forth herein, choose to modify the TlF Plan in order to finance additional public costs in Development District No.4 or the District. Subsection 2-21. Requirements for Agreements with the Developer The Cily will review any proposal for private development to determine its conformance with the Development Program and wilh applicable municipal ordinances and codes. To facilitate this effort, the following documents may be requested for review and approval: site plan, construction, mechanical, and electrical system drawings, landscaping plan, grading and storm drainage plan, signage system plan, and any other drawings or narrative deemed necessary by the Cily to demonstrale the conformance oflhe development City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-15 2-12 . . . . with City plans and ordinances. The City may also use the Agreements to address olher issues related 10 the development Pursuant to MS., Section 469.176, Subd. 5, no more than 10 percent, by acreage, of the property to be acquired in the District as set forth in the TIF Plan shall at any time be owned by the City as a result of acquisition with the proceeds of bonds issued pursuant to MS., Section 469.178 to which tax increments ITom property acquired is pledged, unless prior to acquisition in excess of 10 percent of Ihe acreage, the City concluded an agreement for the development ofthe property acquired and which provides recourse for the City should the development not be completed. Subsection 2-22. Assessment Agreements Pursuant to MS., Section 469.177, Subd. 8, the City may enter into a written assessment agreement in recordable form with the developer of property within the District which establishes a minimum market value ofthe land and completed improvements for the duration ofthe District The assessment agreement shall be presented to the County Assessor who shall review the plans and specificalions for the improvements to be constructed, review the market value previously assigned to the land upon which Ihe improvements are to be constructed and, so long as the minimum market value contained in the assessment agreement appears, in the judgment ofthe assessor, 10 be a reasonable estimate, the County Assessor shall also certify the minimum market value agreement. Subsection 2-23. Administration of the District Administration ofthe District will be handle d by the City Administrator. Subsection 2-24. Annual Disclosure Requirements Pursuant to MS., Section 469.175, Subd. 5, 6, and 6b the City must undertake financial reporting for all tax increment financing districts to the Office of the State Auditor, County Board and County Auditor on or before August I of each year. MS., Section 469.175, Subd. 5 also provides that an annual statement shall be published in a newspaper of general circulation in Ihe City on or before August] 5. Iflhe City fails to make a disclosure or submit a reporl containing the information required by MS., Section 469.175 Subd. 5 and Subd. 6, the OSA will direct the County Auditor to withhold the distribution of tax increment from the District. Subsection 2-25. Reasonable Expectations As required by the TIF Act, in establishing the District, the determination has been made that the anticipaled development would not reasonably be expected to occur solely through private investment within the reasonably foreseeable fulure and that Ihe increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to resull from the proposed development after subtracling the present value of the projected tax increments for Ihe maximum duration of the District permitted by the TIF Plan. In making said determination, reliance has been placed upon 'Written representation made by the developer to such effects and upon City staff awareness of the feasibility of developing the project site. A comparative analysis of estimated market values both with and without establishment ofthe District and the use of tax increments has been performed as described above. Such analysis is included with Ihe cash flow in Appendix D, and indicates that the increase in eSlimated market value of the proposed development (less the indicated subtractions) exceeds the estimated market value of the site absent the eslablishment ofthe District and the City of Hutchinson Tax lncrement Financing Plan for Tax Increment Financing District No. 4-15 1-13 use of tax increments, . Subsection 2-26. Other Limitations on the Use of Tax Increment I. General Limitations. All revenue derived from tax increment shall be used in accordance with the TIF Plan. The revenues shall be used to finance, or otherwise pay the capital and administration costs of Development District No.4 pursuant to Ihe MS., Sections 469.124 to 469.134. Tax increments may not be used to circumvent existing levy limit law. No tax increment may be used for the acquisition, construction, renovation, operation, or maintenance of a building to be used primarily and regularly for conducting the business ofa municipality, county, school district, or any other local unit of government or the state or federal government. This provision does not prohibit the use of revenues derived from tax increments for the construction or renovation of a parking structure. 2. Pooling Limitations. At least 80 percent of tax increments from the District must be expended on activities in the District or to pay bonds, to the extent that the proceeds ofthe bonds were used to finance activities within said district or to pay, or secure payment of, debt service on credit enhanced bonds. Not more than 20 percent of said tax increments may be expended, through a development fund or otherwise, on activities outside of the District except to pay, or secure payment of, debt service on credil enhanced bonds. For purposes of applying this restriction, all administrative expenses must be treated as if they were solely for activities outside of the District. 3. Five Year Limitation on Commitment of Tax Increments. Tax increments derived from the DistricI shall be deemed to have satisfied the 80 percent test set forth in paragraph (2) above only ifthe five year rule set forth in MS., Section 469.1763, Subd. 3, has been salisfied; and beginning with the sixth year following certification of the District, 80 percent of said tax increments that remain after expenditures permitted under said five year rule must be used only to pay previously committed expenditures or credit enhanced bonds as more fully set forth in MS., Section 469.1763, Subd. 5. . Subsection 2-27. Summary The City of Hutchinson is establishing the District to preserve and enhance the tax base, and provide employment opportunities in the City. The T1F Plan for the District was prepared by Ehlers & Associates, Inc., 3060 Cenlre Pointe Drive, Roseville, Minnesota 55113-1105, telephone (651) 697-8500. City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No_ 4-]5 2-]4 . . . . APPENDIX A PROJECT DESCRIPTION The Hutchinson Economic Development Authority intends to construct an 18,000 square foot industrial spec building, which it will use as an aid to business recruitment forthe community. The Hutchinson EDA has identified a lack of available, quality building space as an impediment to economic development. Opportunities 10 recruit new business 10 the community are being lost because industrial building space is not readily available. To remedy this, the Hutchinson EDA will finance, build, own and lease out Ihe industrial spec building. The building will be conslructed on a 5.7 acre site owned by the EDA. The District is being created to facilitate construction of a 18,000 square foot building in the industrial park in the City of Hutchinson. The building and surrounding property will be in the proposed TlF District, and will be marketed 10 a manufacturing firm or other qualifying business. The building will be constructed immediately adjacent to a 12,000 square foot building and the will share a lot line. The two buildings will have separate ownership and be on separate parcels. Plans call for the building to be construcled in such a way that an additional 20,000 square feet can be added relatively easily. In addition, the building will be constructed as close to the streel as possible, so that the ability to construct a second building on the rear half of the lot is mainlained. The industrial spec building will be primarily a metal structure, with employee parking on the street side of the facility and loading docks and a truck maneuvering area on the rear (non-street) side. The land may become tax exempt prior to installation of infrastructure. The City requests that the County certify the base values of the parcels at the value that excludes the value of improvements to the land. APPENDIX A-I @ , , .... ~ ~ I"'''~'''''' c:s I~ I i; i~ 10 0 oil 0 '" HI -"Ii m . ~,!;l ,~ .- , "..>~ . , r~ .' ~~>' , . ; I APPENDIX B MAP OF DEVELOPMENT DISTRICT NO.4 AND THE DISTRICT ~,..., )/ '~ Ij-- ,- -; ~,' 1 J. ,[] ., _~~-.:"""" .i J APPENDIX . B,I . . . . APPENDIX C DESCRIPTION OF PROPERTY TO BE INCLUDED IN THE DISTRICT The District encompasses all property and adjacent rights-of-way and abutting roadways idenlified by the parcels lisled below. Ori2inal Parcel Numbers' Address! Legal Owner 23.261.0050 1020 5'" A venue SE Hutchinson EDA Lot 4, Block 2; Goebel's Addition 23.261.0060 10305'" Avenue SE Hutchinson EDA Lo15, Block 2; Goebel's Addition , The parcels are being replatlted and new parcel numbers will be assigned by McLeod County. The portion of23.261.0050 and 23.261.0060 that is to be included in the District is: This information will be completed priorro the request for certification of the District. APPENDIX C.J . I-a XIaN3ddV . . .LJnI.LSIO 3H.L lIOd f<\Old HSYJ 03.LVWI.LS3 o XION3ddY .007 e . Base Value A!;sl.ll11ptio.ge 1 EHLERS It ASSllCIATES INt Company X TIF Projection City of HutchInson 2008 Pay 2007 PJ)' 2007 Industrllll Building Ow~d by EDA ASSUMPTIONS AND RA lES Ecor'lClmlc D~lllopmmrt 0.00% 6.00% 1-feb-{l" '-""g-<J8 Pay 2008 2010 9 2018 NA Increm&ntal Maxlmurrv'Frozlln lOC<lI Tel( R~~ Cu~nt Local Tal( Rate: (U!lll lesser of CtIrrelll Of Max.) Swte-wide Tax Rate (CommJlnd. aNy used for total taxes) MarJ.:.et Value Tax Rate (Used for total taxes) Pay 2007 Pl!Y2007 Pay 2007 Pay 2007 DistrlctType: Dtlltrlct NameINumber: County Dtatrtctfl.: FI~t V.u Construction Or Inflation on Valull Ezil!;tir1g District. Specify No. Veers RemaInIng InnatlonRate-EvefYYear" Interest Rate: Present Value [)ate: First Perlod Ending Tax Year DislJict WlII1 Certified: Cashf\ow Assumes F1rsl T8)( Increment For District" Years of Tax IllCIllmenl Assumes last YeS( 01 Tax Increment Fiscal Dispartties Election [Outsloe (A). Inside (8). or NAJ locr6lnental or Total Rscal Disparities Flscal Dlsparttle.s Contribution Ratio Fiscal Disparities Metro-\rVide Tax Rate 136.9090% 136.9090% 48.OJ2tJ% 0.19501% PROPERlY TAX CLASSES AND CLASS RATES Exempt Class RBt9 (Exempt) Conmertiallndustrial Prefem!d CIa~ Rate (CI1 P~f.) First $150,000 Over 5150,000 Cormlll'fciBl Industrial Class Rele (CII) Rental Housing Claas Rate (Rental) Affordable Rantal Housing C\ass Rate (Aft. Rent5/) Non-Homestead Residential (Non-H Res.) Homestead Resldental Cbss Rate (Hmstd. Res.) First $500.000 Over S5OO,OOO Agria.lturnl Non-Homesteed 0.00% 1.50% 2.00% 2.00% 1.25% 0.75% 1.25% '.00'>\ 125% 1.00% BASE VALUE INFORMATION (Onglnal Tax Capacity) P.rc.nblge Tar: Year Property Current Clasa After land Buftdlng Toml OfVIlIue lhIed Original Original Tn Original All" Connnllion ... . PlD 0Wn0. AddrellS MllrbtVlIlue MillrbtValue MarketValUII for District Market Value M..rketValue C~n TuCa ConYllrslon Tar:ClI . Area/Phue ily 16.1 16,100 00 6. 00 .., 8 n 42 "n. -0060 EDNCtty 17,300 17,300 '00% 17,300 Pay 2008 CII Pref. 260 cnPref. 260 33 '"'0 50' .., Note: 1. !31!'Se v.~llJes ne'.'d /(! be r",nl\€,llvr OilY 20()7 p,~p",ttd b-y Bhno & An..,oF.l..., Iru::. _ Eo1lmo.... O,wy N~MIorllo\ll~\TIIC\TIF4--1~tDw5-10-07.rlo 511012007 e EHLERS t. ...cOCIATf' ,MC Company X TIF Projection City of Hutchinson Industrial Bul1dlng OWned by EOA Base VaLe AssurnptlO:llS - Page 2 Total Martl:etValue Martl:et prnjoct Completed AreaJPhaae NewU511 Sq. FtJUnlts Sq. FtJUnfts Vakili Tax Capacity 200. 1 .000 29250 u IlII Resldenti81 0 0 Sublate CommMC a ,. 000 0,000 29 " Note: 1, Ii mM.;H;Onil.l)' Ir:u€mcnl (., rIlcoillllli if) 2009, TIP C*-JrrwtwJlI M redtico;>d in tam\ by on", ~t1' Z. f.hrkel "<Ih,o:'~ Me l-"'.!Je<u "POrt estlnh!lt..., from Hutc.hlnsoo EDA. Nf!tWUlHI , .. Not\!: 1. Re'~i&ll1tial w(Js IlOt PH}! SI;lh~'I'fI!j~ prO-pen}! tat or FI5C1l1 OISpiuttl\.'s 2. Homeowners will h.!vc slightly kJ~'","rta:\~ dtHl to mar;;et YiI!uC hol'fl.e$tead crKtit P.EN.I&AlIIodoot..a,inc:.OEallrrllllflIOnlot '" Dlsparttiu Tun o Property Taus 14 . . . Value Taxn ~" . Total Tax" 020 Taxltll Per S . FUUnlt 3.1 H",*,naolllll-lult:hr.lon\T1F\TF4-1!i\cah. .12007 . Tax Incrsm!tl1t CaSh.ge :3 e EHLERS . ..."oC....Tf' llHC Company X TIF Projection City of Hutchinson Industrial Building Owned by EDA Tax Payment Year Om 0 1/08 02/01109 06101/09 02l01f10 100% 29,250 (501) 28,749 137% 39,360 19,680 (71) (1,961) 17,648 15,224 0.5 2010 08101110 19,680 (71) (1,961) 17,648 30,004 1 2010 02101111 100% 29,250 (501) 28,749 137% 39,360 19,680 (71) (1,961) 17,64a 44,353 1.5 2011 08101/11 19,680 (71) (1.961) 17,648 58,285 2 2011 02101/12 100% 29,250 (501) 28,749 137% 39,360 19,680 (71) (1.961) 17,648 71,811 2.5 2012 06101/12 19,680 (71) (1.961) 17,648 84,943 3 2012 02101113 100% 29,250 (501) 28,749 137% 39,360 19,680 (71) (1,961) 17,&W 97,692 3.5 2013 08101113 19,680 (71) (1.961) 17,648 110,070 4 2013 02101114 100% 29,250 (501) 28,749 137% 39,360 19,680 (71) (1,961) 17,648 122,088 4.5 2014 08101114 19,680 (71) (1,961) 17,648 133,755 5 2014 02/01115 100% 29,250 (501) 28,749 137% 39,360 19,680 (71) (1.961) 17,646 145,083 5.5 2015 OBf01f15 19,680 (71) (1,961) 17,648 1.5f;,081 6 2015 02101/16 100% 29,250 (501) 28,749 137"k 39,360 19,680 (71) (1,981) 17,648 186,758 6.5 2016 08101/16 19,680 (71) (1,961) 17,648 177,125 7 2016 02/01/17 100% 29,250 (501) 28,749 137% 39,360 19,680 (71) (1,961) 17,648 187,189 7.5 2017 08101/17 19,680 (71) (1,961) 17,648 196,961 8 2017 02/01/18 100% 29,250 (501) 28,749 137% 39,360 19,690 (71) (1.961) 17,648 206,<<8 8.5 2018 08101118 Total 19,680 {'~~~~ (1.961) 17,648 215,658 9 2018 02101/19 ~~i~~ (~6~'81 3,17~'lJ8 'Phls8ntValo8l=rom ~2101~ P~ntViilti.:Rm 8;00% :'240.f481 '{fI1}' t23;ml ~115,-e9 "', Prep.ar8d by Ehllll'!;& At;~oc;jalu.lnc.- E~ Only N:\MIrw1sob:l\Hutchi"l~(H'I\T1F\TlF4-1~hl\Qw5-1o-D7~1 APPENDIX E MINNESOTA BUSINESS ASSISTANCE FORM (MINNESOTA DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT) APPENDIX . . E.l . . . . ~~JeSdt~ _ Please ml in date agreement signed (same as question 21) Minnesota Business Assistance Form . The Minnesota Business Assistance Form (MBAF) online is available at 'W1.\lw.deed,state rnn.us/CommunitvJsubsidieslMBAfFQm1.htrn to report each business subsidy (including Job Opportunity Zone (JOBZ) t8J1: exemptions/credit) and financjaJ assistance agreement signed fromAu~ust 1. 1999 throu~h December 31. 2006 unless goals have been achieved and reported on a MBAF per Minn. Stat. 91161.993 to ill6J.995. . Assistance given to a business located in a JOBZone must report annually until December 31, 2015 even if goals have been achieved. . The following government agencies must submit a MBAF: 1) any local government/agency that signed a business subsidy agreement since January.}, 200 1, or represents a population of more than 2,500; 2) all state government agencies authorized to provide business subsidies. . DEED will contact any local or state government agency that is required to report but has not done so by April 1. Business assistance may not be awarded after June 1 of each year until a report has been submitted. . Questions? Call (651) 259-7179. Infonnation on where to mail or fax your completed MBAF(s) is on page 7. Section 1: (Grantor Information) 1. Name of grantor (funding entity) 2. Name of person completing this form 3. Street address 4. City 5. Zip Code 6. County 7. Phone number 8. Fax number 9. E-mail address to. Please indicate who in your organization should receive the MBAF if different from the person in Question 2. NamelTit1e Phone number Street address City Zip Code 11. Classification of grantor (Mark one. If grantor is entity created 12. Has your organization held a public hearing on and adopted by gov't agency, please indicate affiliation. For example, a cit)' criteria for awarding business subsidies in compliance with EDA would check "City government. ") Minn. Stat. ~ 1161.994? (Mark one.) o City government 0 Yes, in 2007 (attach criteria) 0 Yes, in 2007 but have not yet adopted criteria o County government 0 Yes, prior to 2007 o Regional government If Yes: Hearing Date: Year Criteria Submitted: o State government 0 No D Other (Please specify) 0 Other (Please attach explanation.) 13. Has your organization signed any agreements to award a business subsidy or financial assistance from August 1, 1999 through December 31,2006 unless goals have been achieved and reported in a previously filed MBAF? (Mark one.) o Yes (Complete the remainder of the fonn unless goals have been achieved and o No(StoD here, go to section 5 on page 4.) reported in a oreviously filed MBAF Der Minn. Stat. 1i116J.993 and #116/.994.) Section 2: Recipient Information 14. Name of business or organization ]5. Address where business subsidy or financial assistance receiving subsidy or financial assistance will be used Street address City State ZIP Code ]6. Does the recipient have a parent corporation? (Mark one.) 0 Yes (indicate name and address of parent corporation below. Ifmore than one, indicate ultimate owner.) 0 No . City - Name of parent corporation Street address State ZIP Code Minnesota Business Assistance Fonn (l2J19!06) Dept. of Employment and Economic Development Page] of? 17. Industry of recipient's facility (Mark one.): D Manufacturing o Services o Finance, Insurance, Real Estate o Retail Trade o Wholesale Trade o Construction o Other (olease .meci/V) 18. Did the recipient relocate as a result of signing this agreement? (Mark one.) o Yes (Indicate city and state of previous address and reason recipient did not complete this project at that address.) City/State of previous address Reason project not completed at previous address Indicate total number of employees who ceased to be employed by recipient when the recipient relocated to become eligible for the business subsidy. o No (Go to ""eslion 19.) # - 19. What would recipient have done without business subsidy or financial assistance? (Mark one): o Remain at previous lCK:ation, but not expand D Remain at previous lCK:ation but expand at the location D Relocate to different Minnesota location D Relocated outside Minnesota o Other 19A. Was the nroiect a result of eminent domain? DYes ONo Section 3: Aoreement Information 20. Total dollar value of business subsidy or financial assistance 21. Date agreement signed (In addition to the agreement date, (Please separate value by type in Questions 24 and 23.) indicate any dates the agreement was ameru:ied.) (Enter zero for JOHZ, Biozone and Agzone projects.) 22. Benefit date (Indicate the Mte the recipient receives the business subsidy or improvements were finished, equipment was placed into service, or the recipient occupied the property, whichever is earlier.) 23. Does the agreement provide a business subsidy or one of the four types of financial assistance (see Question 25) required to be reported? (Mark one.) o business subsidv o financial assistance 24. If the agreement provided a business subsidy, please indicate the 25. If the assistance was one of the four types of financial assistance, type(s) and total doUar ,.alue for each type. please indicate the type(s). D not applicable, agreement provided financial assistance D not applicable, agreement provided a business subsidy o loan (only principal) $- o assislance for property o grant (i.e., forgivable loan) $- by contaminants $ o tax abatement $- o assistance for renovating building 1:1 TIF or other tax reduction or deferral* $- stock or bringing it up 10 code, and o guarantee or payment $- assistance provided for designated o contribution of property or infrastructure $- historic preservation districts, when o preferential use of governmental facilities $- 50 percent or less of total cost $ o land contribution $- o assistance for pollution control or o Biozone $-L.. abatement $ o JOHZ (state tax exemptions/credits and sales tax) $~ o assistance for a TIF soils o 10HZ - Agzone $~ condition district $ D other (Specify subsidy type.) $- (Note: no dollar value for zone nro;ects) 26. If the assistance included tax increment financing, please indicate 27. AIe any other grontors providing a business subsidy or financial the type ofTIF district? (Mark one.) assistance 10 the same project? (Mark one.) o not applicable, assistance was not in the form of TIF o Yes (Specify each granrorand the value of their assistance below,. attach an additional sheet ifnecessary. o redevelopment D renewal and renovation o soils condition Grantor Value ($) o economic development o mined underground space o hazardous substance subdistrict Grantor Value ($) ONo *For questions about TIF reporting requirements contact Arlin Waelti (651) 296-7676 at the Minnesota Office of the State Auditor. Minnesota Business Assistaoce Form (1'2119106) Page 2 of7 Dep4.. of Employmenl and Economic Development . . . . . . Section J2: J02 Information Complete Questions JZI-JZS if the financial assistance was awarded to a JOHZ qualified business recipient receiving JOBZ benefits. (If not, go directly to Question 28.) JZ1. What was the amount of private capital investment of the business in the 10BZ zone prior to December 31, 2006? Real {land and buildings) $ Personal (equipment) $ JZ2. What amount of the qualified business's January 2, 2006 taxable market value was exempt from property taxes payable in 2006 due to JOHZ qualification? (Please specify each parcel identification nwnber and exempt value of each parcel, attaching an additional sheet ifnecessary. Obtain exempt values from the county assessor's office.) $ for Parcel Identification Number: JZ3. What was the value of Wind Energy Production Tax, if any, for the JOHZ qualified business that was operating during the period of January 1, 2006 and December 31, 2006? $ JZ4I1Z5: Goals and actual perfonnance for the JOHZ qualified business recipient. Did the qualified business paid compensation including benefits to each employee of at least 110 percent of the federal poverty level for a family of four for each year (S10.58 per hour as of July 1, 2006)? DYes DNa (For JOBZ subsidy agreements signed after June 30, 2005, compensation including benefits paid by a qualified business to each employee on an annualized basis must be at least 110 percent of the federal poverty level for a family of four for eacb year.) Each line represents an hourly wage level, please round wage levels to the nearest whole dollar and specify the hourly benefit for eacb wage level and the number of jobs (i.e., $12.00 hourly wage level, $1.20 hourly benefits and 10 jobs), 1Z4. G<Jals Full-time Hourly Wage Level $ 7.00 $ 8.00 $ 9.00 $10.00 $11.00 $12.00 $13.00 $14.00 $15.00 $16.00 $17.00 $18.00 $19.00 $20.00 $21.00 $22.00 $23.00 $24.00 $25.00 $26.00 $27.00 $28.00 $29.00 $30.00 $31.00 and higher Hourly Benefits Number of Jobs JZ5. Actuals Full-time Hourly Wage Level $ 7.00 $ 8.00 $ 9.00 $10.00 $11.00 $12.00 $]3.00 $14.00 $15.00 $16.00 $17.00 $]8.00 $19.00 $20.00 $21.00 $22.00 $23.00 $24.00 $25.00 $26.00 527.00 $28.00 $29.00 $30.00 $31.00 and hi8her Hourly Benefits Number of Jobs Minnesota Business Assistance Form (121]9/06) Page 3 of7 Dept. of Employment and Economic Development JZ4/JZ5 (continues) Part-time Part-time Hourly Hourly Number of Hourly Hourly Number of . Wage Level Benefits Jobs Wage Level Benefits Jobs $ 7.00 $ 7.00 $ 8.00 $ 8.00 $ 9.00 $ 9.00 $10.00 $10.00 $11.00 $11.00 $12.00 $12.00 $13.00 $13.00 $14.00 $14.00 $15.00 $15.00 $16.00 $16.00 $17.00 $17.00 $18.00 $18.00 $19.00 $19.00 $20.00 $20.00 $21.00 $21.00 $22.00 $22.00 $23.00 $23.00 $24.00 $24.00 $25.00 $25.00 $26.00 $26.00 $27.00 $27.00 $28.00 $28.00 $29.00 $29.00 $30.00 $30.00 $31.00 and higher $31.00 and higher .Job Retention .1 ob Retention Hourly Hourly Number of Hourly Hourly Number of Wage Level Benefits Jobs Wage Level Benefits Jobs $ 7.00 $ 7.00 . $ 8.00 $ 8.00 $ 9.00 $ 9.00 $10.00 $10.00 $11.00 $11.00 $12.00 $12.00 $13.00 $13.00 $14.00 $14.00 $15.00 $15.00 $16.00 $16.00 $I7.oo $17.00 $IB.oo $IB.oo $19.00 $19.00 $20.00 $20.00 $21.00 $21.00 $22.00 $22.00 $23.00 $23.00 $24.00 $24.00 $25.00 $25.00 $26.00 $26.00 $27.00 $27.00 $28.00 $28.00 $29.00 $29.00 $30.00 $30.00 $3].00 and higher $31.00 and higher . Minnesota Business Assistance Form (I 211 9/Q(j) Page 40f7 Dept. of Employment and Economic Development . . . Section 4: Goals and Public Pu ose Identified in the A reement 28. Minn. Stat. ~116J.994 requires that business subsidy and financial assistance agreements state a public purpose. Which of the following public purposes were stated in the agreement? (Mark all thai apply.) o Enhancing economic diversity o Creating high-quality job growth o Job retention o Stabilizing the community D Increasing tax base (cannot be only purpose) o Other (please specify) 29. Indicate whether the agreement included the following types of goals. and whether the recipient had attained those goals at the time of this report. (Fill in the boxes and attainment date(s}Jor each goal.) A) Specific wage and job goals to be attained within 2 years B) Other jOb-creation andlor retention goals C) Other wage goals D) Goals other than wage and job goals Goals Target attainment All goals established? dates (month & year) attained? DYes ONo DYes ONo DYes ONo DYes ONo DYes ONo DYes ONo DYes ONo DYes ONo Please attach descri tion 0 oals and ro ress toward attainmenr (i not documented in uestions 30 and 31.) 30. If you answered questions JZ4-JZS for a qualified business go directly to question 32. For each of the following wage categories, indicate the job creation and/or retention goals stated in the agreement and the average hourly vaJue of any employer-provided benefits goals for those jobs. <Q!:ill:. indicate job creation goals in full-time equivalents if you are unable to separate goals by fuil- and part-time positions.) U you answered questions JZ4-JZS for a qualified business go directly to question 32. Hourly Wage (excluding benefIts) Full-time Job Creation Part-time Job Creation no homly wage-level goal less than $7.00 $7.00 to $8.99 $9.00 to $10.99 $11.00 to $12.99 $13.00 to $14.99 $15.00 to $16.99 $17.00 to $18.99 $]9.00 to $20.99 $21.00 to $22.99 $23.00 to $24.99 $25.00 to $26.99 $27.00 to $28.99 $29.00 to $30.99 $31.00 and higher Minnes(!(a Business Assistance Fonn (l 2Jl 9106) Page 5 of7 Job Ret.entlon Hourly Value of Benents $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Dept. of Employment and Economic Development 31. If you answered questions JZ4-JZS for a qualified business go directly to question 32. For each of the following wage categories. indicate the number of actual jobs created and/or retained since the benefit date and the actual bourly value of any employer-provided benefits for those jobs. CQ..nlJ. indicate job creation irrfull-time equivalents if you are unable to separate job creation into full- and part- time positions.) lfyou answered questIons JZ4-JZS for a qualified business go directly to question 32. Hourly Wage (excluding benefits) Full-time Job Creation less than $7.00 $7.00 to $8.99 $9.00 to S1O.99 $11.00 to $12.99 $13.00 10 $14.99 $15.00 to $16.99 $17.00 to $18.99 SI9.00 to $20.99 $21.00 to $22.99 $23.00 to $24.99 $25.00 to $26.99 $27.00 to $28.99 $29.00 to $30.99 $31.00 and higher . Part-time Job Creation Hourly Value of Benefits Job Retention $ $ $ $ $ $ $ $ $ $ $ $ $ . $ 32. Has the recipient achieved ~ (see Question 29, 30 and 31) and fulfilled all oblillations stipulated in the agreement (Mark one.) o Yes ONo Section 5: Recipients Failing to Fulfill Obligations (Do not complete this section if you comvleted it on another MBAF submitted to DEED.) 33. During the period January 1,2006 through December 31, 2006, did your organization have any recipients who failed to report as required by Minn. Stat. ! 1161.993 and ~116J.994? (Mark one.) DYes (Indicate the name of each recipiencfailing co report and the value of subsidy or [mandai assistance awarded to that recipient. Attach additional pages if necessary.) Name of recipient ONo Type of subsidy or assistance (See Questions 24 & 25.) Value of subsidy or assistance 34. Did your organization have any recipients who failed to achieve any goals or fulfill any other obligations under an agreement signed on or after January 1,2006, that were required to be fulfilled by the time of this report? (Mark one.) DYes (Complete the remainder of this section.) o No (Stop here and submit form to DEED.) Minnesota Business Assistance Form (1 '1119/(6) . Page 6 of 7 Dept. of Employment and Economic Development . . . For questions 35-39: Provide the follo'Ning infonnation for each recipient failing to fulfill goals or any other tenns of an agreement that were to be attained by the time ofreporting. (Attach additional pa1fes ijnecessary.) 35. Information on recipient and agreement: Name of recipient in default Type of subsidy or assistance Initial value of subsidy or assistance Street address of recipient CitylZip code of recipient Outstanding value of subsidy or assistance 36. Reason(s) for default (Mark all that apply.): D recipient ceased operation o recipient relocated to a different community D recipient was unable to fil1 vacant positions o other (Specify reason.) 37. To date, has the recipient fulfilled its repayment obligation? (Mark one.) o Ves o No, recipient has be!!un to repay the assistance. o No, recipient has not be(!lln to repay the assistance. 38. Has the agreement been amended to extend the recipient's deadline for fulfilling its obligations? (Mark one.) DYes o No 39. Describe the steps being taken to bring recipient into compliance or recoup the subsidy: Return your completed MBAF(s) by Avril]. 2007 EITHER Mail To: Minnesota Business Assistance Report Minnesota Department of Employment and Economic Development - Analysis and Evaluation I" National Bank Building 332 Minnesota Street, Suite E200 St. Paul, Minnesota 55101-1351 OR Fax To: (651) 215-384] (Next year, please use the online version of this form. It can be found at www.deed.state.mn.us/Community/subsidiesIMBAFForm.htm. ) Minnesow. Business Assistance Form (12/]9106) Page 7 of7 Dept. ofEmpJoyment and Ecooorruc Development APPENDIX F . FINDINGS INCLUDING BUTIFOR QUALIFICATIONS The reasons and facts supporting the findings for Ihe adoption of the Tax Increment Financing Plan for Tax Increment Financing District No. 4-15 as required pursuant to M.S., Section 469.175, Subd. 3 are as follows: 1. Finding that the Tax Increment Financing District No. 4-15 is an economic development district as defined in MS, Section 469.174, Subd. 12. Tax Increment Financing District No. 4-15 is a contiguous geographic area wilhin the City's Development District No.4, delineated in the Development Program Modification, for the purpose of financing economic developmenl in the City through the use of tax increment. The District is in the public inlerest because it will facilitate the development of a speculative building in the city's industrial park, which will increase employment in the stale, and preserve and enhance the tax base of the state. 2. Finding that the proposed development, in the opinion of the City Council, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of Tax Increment Financing District No. 4-15 permitted by the TIF Plan. . The proposed d~elopment, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeablefuture: This finding is supported by the fact Ihat the development proposed in this plan is a speculative industrial/commercial building in the city's industrial park, which meets the City's objectives for economic development. Market rents for industrial space in Hutchinson are approximately $4.50 per square foot or a triple net lease. Rents would need to be $6.00 to $7.00 per square foot to cover the cosls of public improvements associated wilh the project plus provide a reasonable return on investment. This gap between market demand and the cost of constructing industrial buildings has existed historically in Hutchinson and precluded the development of speculative industrial space by the privale sector. The cost of site and public improvements and utilities makes development of the facility infeasible for the foreseeable future without Tax Increment Financing. The City has provided a letter and documentation as justification that Ihe development would not have gone forward without tax increment assistance (see attachment in Appendix F). The increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the TIF District permitted by the TIF Plan: The City supported this finding on the grounds that the cost of, sile and public improvements and ulilities add to Ihe total development cost. Historically, the disparity between development costs and lease rates in this area, as menlioned above, have made development infeasible without tax increment assistance. Therefore, the City reasonably detennines that no other development of similar scope is anticipated on Ihis site without substantially similar assistance being provided to the development. APPENDIX F-I . . . . Therefore, the City concludes as follows: a. City's estimate ofthe amount by which the market value ofthe site will increase without the use of tax increment financing is $0 (for the reasons described on the previous page), except some unknown amount of apprec iation. b. If the proposed development to be assisted with tax increment occurs in the District, the total increase in market value would be approximately $1,466,600. The increase in market value would be due primarily to new construction within the District. (See Appendix D and table below). c. The present value of tax increments from the DistricI for the maximum duralion of the district permitted by the T1F Plan is estimated to be no more than $240,486. (See Appendix D and table below). d. Even ifsome development other than the proposed development were to occur, the Council finds that no alternative would occur that would produce a market value increase greater than $1,226,114 (the amount in clause b less the amount in clause c) without tax increment assistance. MARKET VALUE BUT I FOR ANALYSIS Current Market Value - Est. New Market Value - Est. Difference Present Vallie of Tax Increment Difference Value likely to occur without Tax Increment Is less than: 33,400 1,500,000 1 466 600 240,486 12261t4 1,226,114 3. Finding that the TIF Plan for Tax Increment Financing District No. 4-15 conforms to the general plan for the development or redevelopment of the municipality as a whole. The Planning Commission reviewed the TIF Plan and found Ihat the T1F Plan conforms to the general development plan of the City. 4. Finding that the Tax Increment Financing Planfor Tax Increment Financing District No. 4-15 will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development of Development District No.4 by private enterprise. The project to be assisted by the District will result in increased employment in the City and the State of Minoesota, increased tax base of the State, maximize the use oflhe site and City infrastructure by constructing the building with a zero 101 line, and add a high quality development to the City. APPENDIX F-2 In order to create jobs in the City of Hutchinson, the Hutchinson Economic Development Authority plans to construct an 18,000 square foot industrial building on a speculative basis. The EDA has purchased a 5,7 acre parcel on which to locate the project. The building will be conslructed immediately adjacent to a 12,000 square foot office/warehouse building and they will share a lot line. The two buildings will have separate ownership and be on separate parcels. . Market rents for induslrial space in Hutchinson are approximately $4.50 per square foot or a triple net lease. Rents would need to be $6.00 to $7.00 per square foot, excluding tenanl improvements, to cover the costs of public improvements associated with the projecl plus provide a reasonable return on investment. This gap between market demand and the cost of constructing industrial buildings has existed historically in Hutchinson and precluded the development of speculative industrial space by the private sector. The cost of site and public improvements and utilities makes development of the facility infeasible for the foreseeable future without Tax Increment Financing. Current With Project EMV parcel # I EMV parcel #2 Total: $]6,100 $17,300 $33,400 $990,000 $990,000 . APPENDIX F-J . . . . First Avenue SE Street Closure -Agenda - Why appearing before Council now - Desired solution - Survey says - Restricted and limited access - With the current restricted access - 2007 first day - Situations known to have occurred - Questions <::00 ,r---.., ~ . . . Why Appearing Before the Council Now . Set the record straight of how the 1 st Ave situation was presented to the council last September/October · Advised by EDA not to appear before council last year because situation would be referred back to EDA. Let the political process work to make the change. . Goal of having 1st Ave SE open for 2007 not rea Iized · Delay of the anticipated completion date for the pavilion, should it be approved. P< o . . . Desired Solution · Eliminate the closing of 1 st Ave SE or any street for the benefit of one business over another, specifically during core business hours. · Provide reasonable and safe access to businesses affected by street closure. - Access level for customers as if a normal day - Access level for suppliers and employees of the affected businesses as if a normal day. - Affected businesses should not have to incur additional expenses for the benefit of another business. 00 (", y dJ r---., ):) ..:./' . . . Survey Says · Hutchinson Farmer's Market: - Longest Season - Twice per week - Only one that closes a street which directly affects the operation of other year round businesses · Source Chamber of Commerce: Marshall, New Ulm, Red Wing, and Willmar No'ne' taken. Possi'ble alternative sites. O() ~~ ~ ~~ 00 ("", ~ . . . With the Current Restricted Access · Where can the delivery truck legally park? · Where can a semi tractor-trailer legally park to pickup or deliver freight? · Access to the back alley, drive the wrong way on a one way? · Back in or back out with a semi tractor- trailer? Day - 4 Vendors ~ rst . I 2007 F oc ,--..::.. ("') u days market non on out eft I Signs removed be to Needs ~~~~: I ~.~'.;. - J ~ ..11....+,."" ~....... ,. ,~...c.!~; _ ~); ,~ Il'."~ '. .1' ;.~- ,II !.. ~ -- I ,~ r:f) ('... ;:; u . . . Situations Known to have Occurred · People searching for car owners who have business being the building being asked, in not so pleasant terms, to move their vehicle. · At least one person, who is handicapped (has a mirror hanger) had to mover their vehicle to a location farther away to avoid being in violation of city ordinance. ~ u . . . en c o -- I . en Q) :::J o ?LeA) . . . City of Hutchinson Public Works Department Operations & Maintenance 1400 Adams St SE Hutchinson, MN 55350 Phone (320) 234-4219 Fax (320) 234-6971 June 6, 2007 To: Honorable Mayor and City Council members From: John Olson, Public Works Manager CC: Kent Exner, City Engineer DolfMoon, PRCE Director Subject: Draft Light Traffic Plan Since the "Hutchinson Proiect" focused on issues related to light traffic (pedestrians, bicycles, etc.) more than a decade ago, there have been a number of significant changes to the City's light traffic system. Several miles of sidewalk/trail have been added, upgraded or improved over the past ten years. The City now operates a network of almost 53 miles of sidewalk and trail. Over 31 miles are concrete sidewalks, about 13,., miles are bituminous trails, and around 7,., miles are gravel trails. There are also six pedestrian underpasses and one pedestrian bridge. Based on citizen input through surveys and informal contact the network is important to residents. Over the last decade the City has also made significant investments in streetscape, including decorative sidewalks. These projects line Main Street from 4th Ave S to 5th Ave N, and will soon run along Highway 7 from Montana St NW to High St NE. The City staff is committed to expend the effort necessary to appropriately plan, maintain, and improve the City's network. Staff recommends the Resource Allocation Committee review a draft light traffic plan, prepared by City staff, to address four main issues: I) Long-term maintenance of the network; 2) Funding network improvements and maintenance; 3) Projects required to provide logical links between existing portions of the network; and, 4) Winter maintenance of the network. Upon completion of the review by the Resource Allocation Committee, the draft light traffic plan would be presented to the full City Council for further review prior to adoption. On the reverse side of this memo is some information that will help clarify some ofthe issues related to building, maintaining and operating our network of sidewalks/trails. 1 will be available at the June 12, 2007 City Council meeting to answer any specific questions you may have. ~CG) . June 6, 2007 Mayor & City Council John Olson Draft Light Traffic Plan Page 2 The following issues have been identified by staff in the past. These issues were also addressed in the Snow and Ice Report, October 2006. Some of the more significant issues regarding operations of the City's network include: ]) Long-term maintenance of the network a. The primary bituminous trail in Hutchinson, the Luce Line Trail, is more than 15 years old and has had no significant maintenance. b. There are network maintenance needs identified on an annual basis that are deferred due to the lack of a funding source. c. Staff estimates approximately] % of the total network, or y, mile, needs to be rehabilitated or replaced. That number is expected to grow significantly and quickly if routine maintenance is deferred, particularly as it relates to the nearly l3Y, miles of bituminous trail. 2) Funding network improvements and maintenance . a. There is currently no funding specified for improving or maintaining the sidewalk/trail network. b. Emergency repairs are made, but there has been no significant effort to maintain the network since 2003, due to funding issues. c. A review of existing ordinances, as they relate to past and routine practices, is recommended. The ordinance may provide for potential funding mechanisms. 3) Linking the network to provide appropriate routes a. With the addition of sidewalk/trail in areas developed in the southeast and southwest, there are now significant stretches of the sidewalk/trail network that do not connect to the remaining network. b. Early estimates identified approximately five miles of additional sidewalk/trail needs to logically link the existing sidewalk/trail network, and about 2 miles of the network that could potentially be removed. 4) Winter maintenance . a. Under current staffing/equipment, it is reasonable to expect that only downtown areas and school district areas will be able to be plowed concurrently with other snow removal operations. a. By equipping the Park Department employee scheduled to start in the 4th quarter of2007, it would be feasible to provide service to Highway 7 and Highway 15 concurrent to other snow removal operations. b. The recommendation of the 2006 Snow and Ice Report is to add another Trackless MT5 Municipal Tractor, at a cost of approximately $120,000. c. Staff is working to identify priority routes and to define service levels. ~c?' ) . . . ~ SEH MEMORANDUM TO: Kent Exner, City Engineer FROM: John Rodeberg, CSM DATE: May 25, 2007 RE: General EngineeringlPublic Works Support Services SEH No. AHUTCHOOO5.00 As requested, this memorandum outlines the work completed by SEH through the above agreement between January 29, 2007 and the end of May, 2007. The total hours worked were 10.40, which included 9.25 hours of my time and 1.15 hours of administrative support. The total billings during this period were $1,699.49. My work was focused in the following areas: . Review of Public Works staffing and development of interview and analysis criteria (2 hours) . Review of Senior HousinglHAHC sites, and analysis of suitability (2.75 hours) . General public works support regarding personnel, assessments, project history, facilities development, etc. (2 hours) . Municipal State Aid (MSA) system review and update in coordination with staff (2.5 hours) . The administrative work was related to report preparation, printing, accounting and other administrative support. Please let me know if you have any questions regarding the work or related costs. Thank you for your trust and consideration in working with SEH. P:\FJ\H\Hutch\Common\City Engineer Assistance\Support Memo 5-25-07 .doc Short Elliott Hendrickson Inc., 10901 Red Circle Drive, Suite 200, Minnetonka. MN 55343.9301 SEH Is an equal opportunity employer I www.sehlnc.com I 952.912.2600 I 800.734.6757 I 952.912.2601 fax ~C~) . . . Memorandum TO: Mayor and City Council Brenda K. EWi~an Resources Director 2008 Performance Increase Uniform Implementation Date and Consideration of Amendment to City Policy No. 3.08 FROM: RE: DATE: June 6, 2007 Currently, those employees (regular full time & regular part time) who are eligible for and are granted a performance increase per the City's Annual Compensation Plan, receive the increase as of their anniversary date. As a result, increases are implemented with each payroll over the course of the entire year. Historically, the increases have been based upon the appraisal of the employee's performance for the one-year period since their previous anniversary date. Directors and supervisors have completed the appraisals throughout the entire year, and all employees are on different schedules in regards to goals and development plans. As of 2007, it was decided to work to complete the performance appraisals by the end of the first quarter so that all employees within the City and within the various departments on a going-forward basis have a uniform review period, and the goals of the department and all employees within the department can be better coordinated and coincide with the current budget/calendar year. The proposed amendments to City Policy No. 3.08 will officially accomplish this change in timing of the performance reviews. Since the reviews have been changed to a uniform date, the concept of a uniform implementation for the performance increases has also been proposed for consideration. Administratively, it is perceived that this concept will be more effective in regards to completing reviews on a timely basis, implementing the increases during only one payroll and eliminating the need for any retroactive payments, and for budgeting purposes. This issue has been discussed with the City Directors, and staff is recommending that the Council consider the following as the uniform implementation date for performance increases for eligible employees: \c(l\) . . . The first date of the first full pay period commencing on or after March 1 of each subsequent year. For 2008, the implementation date would be March 9, 2008. As a result, during this one time, one year transition, there will be employees with anniversary dates in the first quarter who may assert that they are experiencing a loss in compensation due to the new implementation date. This is a byproduct of this transition that will delay the increase in the first year for a maximum of approximately two months, or a period of 14 months between performance increases. After that, the employees will be on the regular twelve month or one year time frame between eligibility for performance increases. New regular part time and regular full time employees will be required to complete one continuous year of service to the City, at which time the first performance increase may be granted. After the first year, these employees will be transitioned to the uniform implementation date. It is respectfully requested that the Council consider both the amendments to City Policy No. 3.08 and the proposal to establish the uniform date for performance increases. If you have any questions, I will be attending the Council meeting of June 12, 2007. \6C~) . . . Policy 3.08 CITY OF HUTCHINSON POLICY -PERSONNEL- PERFORMANCE REVIEWS NO. 3.08 DATE 1988; updated 1995; 2007 SOURCE ADMINISTRA nON Written performance reviews will be done for salariod and hourly all regular part time and regular full time employees, plus tho Exocuti'io Diroctor of tho Hutchinson Community Dovolopmont Corporation. The director and/or supervisor will complete performance reviews on hourly departmental employees in a format as prescribed by the City Administrator. The City Administrator will complete a performance review on all directors. The City Council will perform a written review on the City Administrator. The City Council will meet to obtain a consensus in the report and provide one appraisal report. Tho Hutchinson Community Dovolopmont Corporation will comploto a porformanco roviow on tho Exocuti'io Diroctor of tho Corporation. Every effort will be made to maintain a sense of confidentiality to make the process effective. Tho Council mombors shall ostablish a timo to roviow with tho administrator tho porformanco roport rolating to tho departmont tho council mombor ovorsoos. All employee pertormance reports are on file for inspection in the office of the Human Resources Coordinator Director. For new employees, ~performance reviews are to be do no completed in the month of the first anniversary date of that employee" and ro'iiowod prior to tho first Council mooting in Docombor, hO'Novor, tho upcoming yoar's objoctivos will bo placod within tho porformanco roviow aftor tho Council ostablishos thoir annual objoctivos in January/Fobruarl. After the first anniversary date, reviews are to be competed by January 31 of each year. The review shall be based on the 12 months of the previous year, except in the case of a new employee where the review period is from the first anniversary date through December 31. \ clJ^ ') . . . MEMORANDUM Date: June 7, 2007 To: Honorable Mayor & City Council From: Miles R. Seppelt Economic Development Director RE: Agenda Items The Hutchinson EDA will have two items on the Council agenda for your consideration. Resolution Findin~ Buildin~s Structurally Substandard ICenex Proiectl The EDA is working on a project to acquire and clean-up the Cenex Fertilizer plant on 3'd Avenue NW. To help finance this project the EDA is looking at the possibility of establishing a Redevelopment Tax Increment Financing (TIF) district at some point in the future, once we have a developer on board to do a project there. To establish the Redevelopment TIF District in the future, the City Council needs to make a finding that the site does, in fact, meet the qualifications for that type of district. Enclosed is a report that staff has prepared that documents that the site does qualify to be designated as a Redevelopment TIF District. In addition, there is a resolution in your packet to that effect. I'll have a very short presentation at the City Council meeting and will be available to answer any questions you may have. Establishment of Economic Development TIF District (Spec Buildin~ Proiectl In the Industrial Park the EDA is working to establish its first Industrial "Spec" Building. To help finance the project we would like to establish a 9-year Economic Development TIF District. When we get a tenant in the building they will pay their proportional share of the property taxes. An Economic Development TIF district will allow us to "capture" those property taxes and direct those monies towards certain qualifying project costs. There will be a public hearing at the Council meeting, during which I will make a short presentation on the project and answer any questions that may arise. If you have any questions or need additional information, please give me a call at 234- 4223. Thank for your time and consideration. IOeb) . . . CITY OF HUTCIDNSON COUNTY OF MCLEOD STATE OF MINNESOTA RESOLUTION NO. 13220 RESOLUTION MAKING CERTAIN FINDINGS WITH RESPECT TO SUBSTANDARD BUILDINGS AND AUTHORIZING AN INTERFUND LOAN BE IT RESOLVED by the City Council (the "Council") of the City of Hutchinson, Minnesota (the "City"), as follows: I. The Council has heretofore established Development District No. 4 and adopted the Development Program therefor. It has been proposed that pursuant to the Development Program the City acquire property in the Development District described on Exhibit A attached hereto (the "Parcels") and demolish and clear certain blighted buildings (the "Buildings") located on the Parcels, and that the City sell the cleared Parcels to a developer for construction of improvements thereon. The City intends to pay for certain costs of the acquisition and redevelopment of the Parcels consisting of landlbuilding acquisition, building demolition, soil corrections and environmental remediation, site improvements/preparation, public utilities, public parking facilities, streets and sidewalks, interest and administrative costs (collectively, the "Qualified Costs"), with tax increment financing, and intends to create a tax increment financing district including the Parcels as a "redevelopment district" (the "TIF District"). Under Minnesota Statutes, Section 469.178, Subd. 7, the Hutchinson Economic Development Authority (the "Authority") or the City is authorized to advance or loan money rrom the Authority's general fund or any other fund rrom which such advances may be legally made, in order to finance the Qualified Costs. Minnesota Statutes, Sections 469.174, Subd. 10 provides that an Authority may create the TIF District as a "redevelopment district" if the Authority finds by resolution that parcels consisting of 70% of the area of the TIF District are occupied by buildings, streets, utilities or other improvements, and more than 50% of the buildings, not including out buildings, are structurally substandard to a degree requiring substantial renovation or clearance. The City would like to demolish the Buildings at this time and delay establishing the TIF District until a developer has been selected to construct a development on the parcels, and Minnesota Statutes, Section 469.174, Subd. 10(d), provides, among other things, that a parcel may be deemed to be occupied by a structurally substandard building if(l) the parcel was occupied by a substandard building within three years of the filing of the request for certification of the parcel as part of the TIF District with the county auditor; (2) the substandard building was demolished or removed by the City, the demolition or removal was financed by the City or was done by a developer under a development agreement with the City; and (3) the Authority found by resolution, before the demolition or removal, that the parcel was occupied by a structurally substandard building and that after demolition and clearance the City intended to include the parcel within the district. 2. The Council hereby finds as follows: ItLk>) . (a) At least 70% of the area of the Parcels is occupied by the Buildings or other buildings, structures, utilities or other improvements (b) The Buildings are "structurally substandard" within the meaning of Minnesota Statutes, Section 469.174, Subd. 10. The reasons and supporting facts for this determination are on file with the staff of the City (c) The City intends to demolish the Buildings or to finance the demolition of the Buildings and the City intends to subsequently include the Parcels in a redevelopment tax increment district established pursuant to Minnesota Statutes, Section 469.174, Subd. 10, which T1F District, if established, shall be established within three years ofthe date hereof. (d) Upon filing the request for certification of the tax capacity ofa Parcel as part of the TIF District, the Authority will notifY the county auditor that the original tax capacity of the Parcel must be adjusted as provided in Minnesota Statutes, Section 469.177, Subd. I, paragraph (t). . 3. To pay Qualified Costs, the City hereby authorizes the advance to the City by the City or the Authority of up to $700,000, or so much thereof as is needed to pay the Qualified Costs, from funds legally available therefore, an interfund loan under Minnesota Statutes, Section 469.178, Subd. 7 (the "Interfund Loan"). The City shall reimburse itself for such advances together with interest at the rate stated below. Interest accrues on the principal amount from the date of each advance. The maximum rate of interest permitted to be charged is limited to the greater of the rates specified under Minnesota Statutes, Section 270.75 or Section 549.09 as of the date or advance is made, unless the written agreement states that the maximum interest rate will fluctuate as the interest rates specified under Minnesota Statutes, Section 270.75 or Section 549.09 are from time to time adjusted. The interest rate shall be 6%. The City may issue bonds or other obligations to permanently finance the Qualified Costs paid by the City and apply proceeds from the sale of such bonds to pay the Interfund Loan. 4. Principal and interest ("Payments") on the Interfund Loan shall be paid semi-annually on each August I and February I (each a "Payment Date"), commencing on the first Payment Date on which the Authority has "Available Tax Increment" (defined below), or on any other dates determined by the Finance Director as the date of last receipt oftax increment from the T1F District. 5. Payments on the Interfund Loan are payable solely from Available Tax Increment that the City has on hand on any Payment Date. Available Tax Increment shall mean, (i) the tax increment generated in the preceding six (6) months with respect to the property within the TIF District and remitted to the City by McLeod County, (ii) all of the net proceeds received by the City from the sale of the Parcels by the City, and (iii) any other funds received by the City which constitute tax increment from the TIF District under Minnesota Statutes, Section 469.174, Subd. 25, less any of such amounts applied to pay administrative expenses of the City. Payments on the Interfund Loan may be subordinated to any outstanding or future bonds, notes or contracts secured in whole or in part with Available Tax Increment, or on parity with any other outstanding or future interfund loans secured in whole or in part with Available Tax Increment. 6. The principal sum and all accrued interest payable under the Interfund Loan shall be pre- payable in whole or in part at any time by the City without premium or penalty. No partial prepayment shall affect the amount or timing of any other regular payment otherwise required to be made under this Interfund Loan. . 7. The Interfund Loan is evidence of an internal borrowing by the City in accordance with Minnesota Statutes, Section 469.178, Subd. 7, and is a limited obligation payable solely from Available IO(0) . . . Tax Increment pledged to the payment hereof under this resolution. The Interfund Loan and the interest hereon shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including, without limitation, the City. Neither the State of Minnesota, nor any political subdivision thereof shall be obligated to pay the principal of or interest on this Interfund Loan or other costs incident hereto except out of Available Tax Increment, and neither the full faith and credit nor the taxing power of the State of Minnesota or any political subdivision thereof is pledged to the payment of the principal of or interest on the Interfund Loan or other costs incident hereto. The City shall have no obligation to pay any principal amount of the Interfund Loan or accrued interest thereon, which may remain unpaid after the final Payment Date. 8. The City may amend the terms of the lnterfund Loan at any time by resolution of the City Council, including a determination to forgive the outstanding principal amount and accrued interest to the extent permissible under law. 9. This resolution is effective upon the date of its approval. \Deb] . . . Description of Buildings: EXHIBIT A Former CENEX processing facility and adjacent storage buildings Description of Parcels: Address 240 3rd Avenue NW 20 I Lind Street NW 220 3rd Avenue NW 200 3rd Avenue NW SF 7,512 10,907 16,774 10.677 45,870 SF County PID 23 - 056 - 2600 23 - 056 - 2590 23 - 056 - 2580 23 - 056 - 2570 A-I \OCb) . Redevelopment Tax Increment Financing District Eligibility Study Cenex Redevelopment Project 201 Lind Street NW 200, 220 & 240 3'd Avenue NW Hutchinson, Minnesota . Prepared by Miles R. Seppelt, EDA Director Lenny Rutledge, Building Official Kyle Dimler, Building Official June 6, 2007 . IbCb) . Governing Statutory Language To be eligible for a Redevelopment Tax Increment Financing district, the area to be redeveloped must meet certain requirements, as outlined in Minnesota State Law. These are: Minnesota Statute 469.174 Subd. 10. Redevelopment district. (a) "Redevelopment district" means a type of tax increment financing district consisting of a project, or portions of a project, within which the authority finds by resolution that one or more of the following conditions, reasonably distributed throughout the district, exists: (1) parcels consisting of 70 percent of the area of the district are occupied by buildings, streets, utilities, paved or gravel parking lots, or other similar structures and more than 50 percent of the buildings, not including outbuildings, are structurally substandard to degree requiring substantial renovation or clearance; Subd. 10 (b) . For purposes of this subdivision, "structurally substandard" shall mean containing defects in structural elements or a combination of deficiencies in essential utilities and facilities, light and ventilation, fire protection including adequate egress, layout and condition of interior partitions, or similar factors, which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance. Subd. 10 (c) A building is not structurally substandard if it is in compliance with the building code applicable to new buildings or could be modified to satisfy the building code at a cost of less than 15 percent of the cost of constructing a new structure of the same square footage and type on the site. The municipality may find that a building is not disqualified as structurally substandard under the preceding sentence on the basis of reasonably available evidence, such as the size, type, and age of the building, the average cost of plumbing, electrical, or structural repairs, or other similar reliable evidence. The municipality may not make such a determination without an interior inspection of the property, but need not have an independent, expert appraisal prepared of the cost of repair and rehabilitation of the building. Study Area The proposed Redevelopment TIF District will include the lots located at 201 Lind Street NW as well as 200, 220 & 240 3m Avenue NW in Hutchinson, Minnesota. Referring to the aerial photo on the following page, these are currently occupied by the old Cenex fertilizer plant. . \ be ~) Reference Shack Figure 1-Aerial photo of study area ~ . !'~. . .,~ ',' - · ~b;'~~X;;._ · Tab,le 1 - Identification of Study Area ,Add:ress 201 Lind Street NW Bag Storage Bldg. 240 3rd Avenue NW Office & Bul:k Storage Loading Area 220 3rd Avenu,e NW 200 3rd Avenue NW l..eaal Description South seventy-five (75') feet of Lots four (4) & five (5), Block 2'8, North One- h,alf (N112) of 'City of Hutchinson~ McLeod County, MN North fifty-se'ven (57') fe;et of Lots four (4) & fiv,e (5), Block 28, North H.alf (N 1 /2), City of Hutchinson, Mcleod County, MN Lots two (2) and three (3). Block 28, North Half (N1/2) of City of Hutchinson, McLeo,d County, MN Part of Lot one (1), Block 28, North Half (N1/2) of City of Hutchinson, McLeod County) MN IC{v) . . III Figure 2 - Map of Study Area \ 3'" Ave. NW Lind Sl NW 240 3rd Ave NW 2003" Ave.NW 2203" Ave. NW 201 Lind St.NW Les Kouba Parkway ",."'_-<<",h..'.....c01.' ~Cil''f'' ,_0(rt).';'<;JO'" . \- '"... \t(0) Criterion 1 Minnesota Statute 469~1741 Subd. 10. (1) states: ttparce/s consisting of 70 percent of the area of the district ~re occupied by f;Juildingsj stre'ets, utilities, paved or gravel parking Jots, or other similar structures. . . .~J Findings The site of the Cenexfertilizer plant is divided into four separate parc.els. As can been seen in Figure 3, at right, the entire site is occupied by I buildings, a paved unloading area and gravel parkinig and maneuvering areas. _.~..'.' ~ (0' -:'" ~~~' . ... As such, per statute, aU four lots are considered Himp'roved.u As shown in Table 2, bel,ow1 the four Jots cover a total area of roughly 45,870 square feet aU of which is improved area, as defin,ed by statute. Table' 2 - Improved Square Feet of Lots Ad.dress Total Square Improved Feet Square Feet 10,907 10,907 201 Lind Street NW 240 3rd Avenue 7,512 7,512 NW 220 3ra Avenue 16,.774 16,.774 NW 200 3fd Avenue 1 O~677 10,667 NW T'OT AL 4~,.8,70 45,870 The percentage of area improved is given by dividing this number of square feet improved by the total square footage of the tots. Mathem.atic,ally this is: 0/0 Improved = [45,870/ 451870] = 1000/0 Since parcels consisting of more than 709/0 of area of the district are improved, as defined by statute, (in this case it is1 000/0) this criterion is satisfied. I D (0 J Criterion 2 . The second criterion that must be satisfied is that more than one-half of the buildings in the proposed redevelopment district must be found to be substandard based upon an internal inspection. The governing statutes state: Minnesota Statute 469.174, Subd. 10. (1) ".. .and more than 50 percent of the buildings, not including outbuildings, are structurally substandard to degree requiring substantial renovation or clearance" Subd. 10 (b) "For purposes of this subdivision, "structurally substandard" shall mean containing defects in structural elements or a combination of deficiencies in essential utilfties and facilities, light and ventilation, fire protection including adequate egress, layout and condition of interior partitions, or similar factors, which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance. " Subd. 10 (c) . "A building is not structurally substandard if it is in compliance with the building code applicable to new buildings or could be modified to satisfy the building code at a cost of less than 15 percent of the cost of constructing a new structure of the same square footage and type on the site. The municipality may find that a building is not disqualified as structurally substandard under the preceding sentence on the basis of reasonably available evidence, such as the size, type, and age of the building, the average cost of plumbing, electrical, or structural repairs, or other similar reliable evidence. The municipality may not make such a determination without an interior inspection of the properly, but need not have an independent, expert appraisal prepared of the cost of repair and rehabilitation of the building. " FindinQs The four buildings on the Cenex fertilizer site were inspected both externally and internally by Hutchinson city building officials on May 16111 and again on May 18th, 2007. Code deficiencies were identified and these are detailed in the sections that follow. On May 23"', 2007 city staff met on-site with Brent Christensen and Chris Tronick of B. Christensen Construction, Inc. to review the building code deficiencies and estimate costs to remedy them. These cost estimates are noted below. . I bCk> ) Cenex Offi,ce This building conta'ins the Cenex offices as well as a general purpose garage area. Included are a general purpose reception area, 3 offices. a closet and a restroom which is located in the garage area. The buUding is about 2,12.0 square feet in sizel measuring 53* x 401. Estimated ,cost to repair deficiencies Estimated cost for ne.w structure Reair Cost I New Bid . Percenta e Finding $8,780 $160,0,00 5.490/0 ok Summary Findinas Detail Of the four buildings on the Cenex site1 the office building is unquestionably in the best condition~ D.eficiencies faU into three broad categories. 1. Restroom - not handicap accessible and is missing a number of safety ret,ated items. · Restroom not handicap accessible $400 Minnesota State Building Code (MSBC) section 1341 ~0405 item K Subpart 1 · M'lssi.nggrab'.,bars in restroom $200 Minnesota State Bundling Code (M.SBC) section 1341.0448 Subpart 4 · Bathro:om sink set. too h!igh for accessiibility $300 Minnesota State BuUd'ing ,C'ode (MSBC) s.ection 1341.0454 Subpart 2 · Missing ac.cessibility signage $50 Minnesota State Building Code (MSBC) section 1341.0476 · Mechanical ventilation in re'stroom m:issing $500 Section 502.17 IMC · ,Scald guards on water lines to sink mis'sing $80 Minnes'ota State Building Code (MSBC) se.ction 1341.0454 Subpart 4 · Shut off valves in water lines to shower missing $100 Minnesota State Building Code (MSBC) section 4715.1800 Subpart 6 2. Building E,xterlor · Need to correct grading for p,ositive flow of storm water $700 · Misc. openings in exterior walls of building to be sealed $1,000 Minnesota State Building Code (MSBC) section 1305.1405 Subpart 3 \ c ('u) · Non-masonry sections of the exterior need replacement due to moisture dam,age, unp1rotected joints in the plywo.od and untreate:d woo,d to grade. $4,000 Minnesota State Building Code (MSBC) section 1305..2304 Subpart 11 Minnesota State Building Code (MSBC) section 1305.1405 Subpart 2 B SiUs on all wlnidowsare rotten and need replaceme'nt $1JOOO Minnesota St.ate Building Code (MSBC) section 1305.1405 Subpart 12 3. Miscellaneous · Temperature discharge valve & pipe from valve missing $300 Minnesota State Building Code (MSBC) section 4715.4200 · Shut off valve on gas line to furnace missin'Q IFG'C 409.5 $150 Since the total cost to renovate the existing building is less than 150/0 of the cost to construct. a new building, the Cenex O'ffice Buil,dino does not meet the statutory definition of being tlsubstandard.J7 BaQQ'ed Materia,1 Storaoe BuildinQ This building is used for the storage Q!f seed and other baggedmateriais. It is a simply constructed mas,onry block building with two overhead doors, one personnel door and no interior partitions. The building is 2.160 square feet, measuring 361 x 60'. Summary Findings Estimated cost to re air deficiencies Estimated cost for new structure Re air Cost I New Bld'l .. Percenta e Finding $26,500 $120t,QOO 22'0/0 Substandard Detail The bagged material storage building has a number of major deficiencies and is in need of an overall st,ructural evaluation. Among the deficiencies are cracking in aU the exterior walls andt internally~ t.he building pilasters appear to be separating from th,e ends of the building. The I-beam that supports the roof does not rest on the pilasters themselves, but rather on wood. blocking that is situated on top of the pilasters. Finally, the ceiling inside the building is severely damaged and ,c( V ) . . . needs replacement. Deficiencies fall into four general categories. 1. Exterior wall damage $10,000 . Cracks above lintels of overhead doors . Cracking In exterior walls (multiple locations) . Cracking in masonry above north window . Unsealed wall penetrations In all walls . Former duct vent unsealed (south wall) Minnesota State Building Code (MSBC) section 1305.1405 Subpart 2 Minnesota State Building Code (MSBC) section 1305.1604 Subpart 2 . Missing seal between masonry and door jamb of overhead door Minnesota State Building Code (MSBC) section 1305.1405 Subpart 3 2. Interior structural issues $4,000 . Both masonry pilasters supporting the center structural beam are buckling and separating from the exterior wall Minnesota State Building Code (MSBC) section 1305.1604 Subpart 2 . Ceiling support beam Is resting on temporary wood blocking rather than on the pilasters themselves Minnesota State Building Code (MSBC) section 1305.2204 Subpart 1 . Overall Structural failure of building Minnesota State Building Code (MSBC) section 1305.1604 Subpart 2 3. Ceiling $10,300 . Ceiling finIsh material sagging and not fastened property . Ceiling finish material missing In some locations Minnesota State Building Code (MSBC) section 1305.803 Subpart 2 . Extensive moisture damage to ceiling Minnesota State Building Code (MSBC) section 1305.1503 Subpart 1 . Entire ceiling should be replaced 4. Miscellaneous $2,200 . Broken glass blocks in all windows Minnesota State Building Code (MSBC) section 1305.1604 Subpart 2 . Missing exterior window seal Minnesota State Building Code (MSBC) section 1305.1405 Subpart 12 . Personnel door not sealed against weather Minnesota State Building Code (MSBC) section 1305.1405 Subpart 3 ItC0) , ___~l ..., \ ~ I - ,.=- ~ -~_.--- - - :l - ~ --= -- Since the total cost to renovate the existing building is more. than 15;% of the cost to construct a new building; the Baaaed Material Storaoe Building does meet the statutory definition of being Usubstandardru Small StoraQe BuUdinQ The small storage building is used for miscellaneous storage of signs, offiice furniture and other miscellaneous items. It contains a small bathroom and one office-type area. Overall the building measures 16s x 16' t giving a total of 256 square feet. Summary Findinos Estimated cost to repair deficiencies Estimated cost for new structure Re air Cost I New Bldg. Percenta e Findin L_~- _ $11 ,800 $20,000 590/0 Substand.a,rd i (. ( ~) . . . Detail The building is in overall poor shape, showing significant neglect over the course of many years. Deficiencies fall into four categories. 1. Exterior $2,000 . Unsealed exterior wall penetrations Minnesota State Building Code (MSBC) section 1305.1405 Subpart 2 . Untreated wood to grade Minnesota State Building Code (MSBC) section 1305.2304 Subpart 11 . Missing flashing on windows I rotten window frames Minnesota State Building Code (MSBC) section 1305.1405 Subpart 3 . Outside door broken $1,000 Minnesota State Building Code (MSBC) section 1305.1405 Subpart 12 . Outside door needs tempered glazing Minnesota State Building Code (MSBC) section 1305.2406 Subpart 2.1 . Building not handicap accessible $400 Minnesota State Building Code (MSBC) section 1341.0405 . Broken windows $100 Minnesota State Building Code (MSBC) section 1305.1405 Subpart 12 2. Roof . Building needs new shingles $1,800 Minnesota State Building Code (MSBC) section 1305.1503 Subpart 1 . Roof flashing missing Minnesota State Building Code (MSBC) section 1305.1507 Subpart 2.9.3 . Vent flashing not properly installed Minnesota State Building Code (MSBC) section 1305.1507 Subpart 2.9 . Chimney needs to be replaced $1,500 Minnesota State Building Code (MSBC) section 1346.0801 Subpart 18 IMC 801-18 . Chimney not lined Minnesota State Building Code (MSBC) section 1346.0801 Subpart 16 IMC 801-16 3. Interior $4,000 . Restroom not handicap accessible - need to reconfigure Minnesota State Building Code (MSBC) section 1341.0460 lOCk;') · Water damage to inside Qf building Minns.sota State; Building Code (MSBC) section 1305.15'03 Subpart 1 4. MisceHaneous Items · Inadequate separation for exterior fuel tank, in a commercial ~pplication. IFC 3404.2.9.5.1.1 $700 · Vehicle protection for fuel tank missing IFe 312.1 · Exterior' wiring not properly terminated $100 I.E..C. · Backflow prevention missing from exterior hose bib $200 Minnesota State Building Code (MSBC) section 4715.2110 Since the total cost to renovate the existing building is more than 150/0 of the cost to construct a new building, the SmaIl Storaae Buildinq does meet the statutory definition of being Hsubstandard.'~ Bulk StoraoeBuilding The bulk storage building is used for the storage alid ~~ mixing of large amounts of bulk fertilizers. The interior ~ · .. of the buildi'ng is portioned in'to abo,ut 6-8 large wooden' .l bins for the storage of bulk materials. '. !2i~~it-!jl'-':..i~~~~-'i . ,,~I1Jilg.rr~' ~~~~-;!f~~..~_..... The building is roughly 8,280 square feet in size, measuring about 184' x '45'. If*'''~ Summary Findings Estimated cost to re air deficiencies Estimated cost for new structure Repair Cost I New Bid . Percentae Findin $200,0.00+ $525,000 >38% Substandard Detail The building is severely run~down and is sh.owing rot Clndor damage to virtually every building component. The building would be virtually impossible to repair,as nearly every support beam and every rafter would have to be replaced, along with the roof and exterior finish materials. \D(G) 1. Exterior $50,000+ · U'ntreatedwood 'to grade · Ne.ed to correct grading for positive flow of storm water M:innesotaStat.e Building Code (MSBC) s,ection1305~2304 Subpart 11 · Multiple roof leaks I roof needs to be replaced Minnesota State Building Code (MSBC) section 1305~ 1503. Subpart 1 · Window missing in gable (east side of building) · Extensive decay to exterior finish materials · Missing exterior finish materials Minneso,ta State Building Code (MSBC) section 1305~ 1405 Subpart 2 · Exterior walls noticeably bowi"ng ,outwards · West wall not vertical · FaUure to door f,astener (north side of building) Minnesota State Building Code (MSBC) section 1305.1604 Subpart 2 2. Jnterior $150,000+ · Inadequate structural support for roof and walls · Extensive damage and decay to rafters · Broken rafters · Bowing rafters · Extensive stud damage and decay · Rafters twisting on foundation · Catwalk damaged & unusable MlinnesotaState Building Code (MSBC) section 1305. 1604 Subpart 2 The total cost to renovate the existing building would be considerably more than '150/0 of the cost to construct a new building, As a result, the Bulk Storaa:e BuHdina does meet the statutory definition of being Usubstandard.u Additional information on building cost estimates can be obtained from B Christensen Construction. Inc. P.O. Box 423 Hutchinson1 MN 55350 (320) 234...6655 1( L v) . . . Conclusions 1) The lots in question are all 100% developed according to the statutory definition. The site therefore meets the statutory conditions for lot coverage 2) Three of the four buildings are significantly substandard according to the current building code and would easily require the investment of at least 15% of the cost of a new building to bring up to existing code requirements. Therefore, the proposed redevelopment site meets the statutory requirement that over 50% of the structures be sub-standard. 3) Given that the statutory requirements for both percentage of lot that is developed and. percentage of buildings being sub-standard are met, the area under consideration Is ellqible to be designated a Redevelopment Tax Increment Financing district. If anyone has questions about this report or needs additional information about any aspect of it, please contact Miles R. Seppelt, the Economic Development Director for the City of Hutchinson at (320) 234-4223. lc[0J PAYROLL DATE: Period Ending Date: May 25, 2007 May 19, 2007 FOR COUNCIL LIST ONLY - ELECTRONIC TRANSFER TO STATE AND IRS . DO NOT ISSUE CHECKS FOR THIS PAGE ~MOUNT ACCT# NAME DESCRIPTION $26,280.57 $13,483.29 9995.2034 WITH. TAX Employee Contribution. Federal Tax ACCOUNT 9995.2240 Empioyee Contribution. Soc. Security $3,928.22 9995.2242 Empioyee Contribution. Medicare $43,692.08 Sub-Total. Employee Contribution $13,483.29 9995.2240 Employer Contribution. Social Security $3,928.22 9995.2242 Employer Contribution. Medicare Per Journal Entries Difference Fica $ 26,966.58 $17,411.51 Sub-Total. Employer Contribution Medicare $ 7,856.44 Withholding $ 26,280.57 $61,103.59 Grand Total- Withholding Tax Account Total $ 61,103.59 $0.00 ~ 9995.2035 MN DEPT OF REVENUE State Tax $ 11,196.03 $0.00 $16,239.32 9995.2241 PERA Employee Contribution - Pension Plan $19,595.53 9995.2241 Employer Contribution - Pension Plan $35,834.85 Sub-Total - PERA $1586 9995.2243 PERA.DCP Employee Contribution - Pension Plan $15.86 9995.2241 Employer Contribution - Pension Plan Para $ 35,850.71 $31.72 Sub - Total - DCP DCP $ 15.86 $35,866.57 GRAND TOTAL - PERA Total $ 35,866.57 $0.00 Finance Director Approval . PAYROLL DATE: Period Ending Date: June 8, 2007 June 2, 2007 FOR COUNCIL LIST ONLY. ELECTRONIC TRANSFER TO STATE AND IRS DO NOT ISSUE CHECKS FOR THIS PAGE . AMOUNT ACCT# NAME DESCRIPTION $27,422.95 9995.2034 WITH. TAX Employee Contribution. Federal Tax ACCOUNT Employee Contribution - Soc. Security $14,022.08 $4,017.62 9995.2240 9995.2242 Employee Contribution. Medicare $45,462.65 Sub.Total- Employee Contribution $14,022.08 9995.2240 Employer Contribution. Social Security $4,017.62 9995.2242 Employer Contribution. Medicare Per Journal Entries Difference Fica $ 28,044.16 $18,039.70 Sub.Total- Employer Contribution Medicare $ 8,035.24 Withholding $ 27,422.95 $63,502.35 Grand Total - Withholding Tax Account Total $ 63,502.35 $0.00 $11,641.60 9995.2035 MN DEPT OF REVENUE State Tax $ 11,641.60 $0,00 . $15,979.15 9995.2241 PERA Employee Contribution - Pension Plan $19,250.49 9995.2241 Employer Contribution. Pension Plan $35,229.64 Sub-Total. PERA $15.86 9995.2243 PERA.DCP Employee Contribution. Pension Plan $15.86 9995.2241 Employer Contribution - Pension Plan Pera $31.72 Sub - Total - DCP DCP $35,261.36 GRAND TOTAL - PERA Total $ 35,245.50 $ 15.86 $ 35,261.36 $0.00 Finance Director Approval . IR55APPYRV I CITY OF HUTCHINSON By Check Number AP Payment Register with Voids Check Dates 05/30/2007 - Ck Date Tvpe Check # Vendor Name Amount 05/30/2007 PK 142920 . 101919 AMERICAN FAMILY INS CO. 152.31 05/30/2007 PK 142921 103123 CRONATRON WELDING SYSTEMS INC 320.03 05/30/2007 PK 142922 104884 CULLIGAN 34.00 0513012007 PK 142923 101872 HAR.T. 428.67 05/30/2007 PK 142924 102038 HUTCHINSON, CITY OF 9,631.17 05/30/2007 PK 142925 102635 HUTCHINSON, CITY OF 800.18 05/30/2007 PK 142926 101873 ICMA RETIREMENT TRUST 4,301.92 05/30/2007 PK 142927 101876 ING LIFE & ANN CO. 1,445.00 05/30/2007 PK 142928 123417 MADINA HOSPITALITY GROUP LLC 150.00 05130/2007 PK 142929 102573 MCLEOD COOP POWER 1,600.00 05/30/2007 PK 142930 102489 MCLEOD COUNTY COURT ADMINISTRA 482.00 05/30/2007 PK 142931 123988 MEDICA 83.624.72 05/30/2007 PK 142932 102449 MINNESOTA CHILD SUPPORT PAYMEN 271.34 05/30/2007 PK 142933 101875 ORCHARD TRUST COMPANY, LLC 300.00 05/30/2007 PK 142934 102096 PRUDENTIAL MUTUAL FUNDS 30.00 05130/2007 PK 142935 120932 REDWOOD COUNTY COURTHOUSE 147.00 05/3012007 PK 142936 109801 SCOTTS WINDOW CLEANING SERVIC 63.90 05130/2007 PK 142937 102637 SEVEN WEST WASH & DRY 339.63 05/30/2007 PK 142938 120514 SPRINT 367.56 05/30/2007 PK 142939 123779 STANDARD INSURANCE COMPANY, TH . 892.91 05/30/2007 PK 142940 122895 TEWS TRUCKING INC. 770.64 05/30/2007 PK 142941 102630 VIKING SIGNS 1,256.70 . 107,409.68 Account Num # 107,409.68 Void Amou . R55APPYRV CITY OF HUTCHINSON By Check Number AP Payment Register with Voids Check Dates 06/07/2007 - Ck Date Type Check # Vendor Name Amount 06/0712007 PK 142942 . 119212 ""VOID VOID VOID VOID VOID- 06/07/2007 PK 142943 119212 BLOCK FARMS & TRUCKING INC. 3242.7 06/07/2007 PK 142944 124382 BROWN, DENISE 4000 06/0712007 PK 142945 122919 BRYAN STREICH TRUCKING 3490.9 06/0712007 PK 142946 123539 C.H. ROBINSON CO. 1157 06/0712007 PK 142947 110099 CARVER COUNTY COURT ADMIN 60 06/07/2007 PK 142948 124375 DOBRATZ, DOUG 5000 06/07/2007 PK 142949 103743 GE CAPITAL 38.62 0610712007 PK 142950 122273 HSBC BUSINESS SOLUTIONS 960.47 06/0712007 PK 142951 102038 HUTCHINSON, CITY OF 207784.49 06/0712007 PK 142952 121386 KRISTICO, INC 1290 06107/2007 PK 142953 102489 MCLEOD COUNTY COURT ADMINISTRA 240 06/07/2007 PK 142954 102449 MINNESOTA CHILD SUPPORT PAYMEN 447.86 06/07/2007 PK 142955 120578 NILES. JIM 118.83 06/07/2007 PK 142956 121176 REINER ENTERPRISES, INC 7767.56 06/07/2007 PK 142957 124383 RICE COUNTY COURT ADMINISTRATI 60 06/07/2007 PK 142958 111450 SHELLENBARGER, VIRGENE 120.41 06/07/2007 PK 142959 124384 ST LOUIS COUNTY COURT ADMIN 60 06/07/2007 PK 142960 122895 TEWS TRUCKING INC. 415.8 06/07/2007 PK 142961 102458 TRI COUNTY BEVERAGE & SUPPLY 161.8 06/07/2007 PK 142962 124019 USPS 2161.6 238578.04 Account Nurr # 238578.04 . Void Amou . . - R55APPYRV I CITY OF HUTCHINSON By Check Number AP Payment Reaister with Voids Check Dates 06/12/2007 - Ck Date Type Check # Vendor Name Amount 06/12/2007 PK 142963 . 110847 1ST L1NE/LEEWES VENTURES 651.75 06/12/2007 PK 142964 102759 AARP 330.00 06/1212007 PK 142965 102126 ACE HARDWARE 1,391.71 06/12/2007 PK 142966 120214 ACTIVAR INDUSTRIAL PLASTICS 329.23 06/12/2007 PK 142967 101827 AG SYSTEMS 10.59 06/1212007 PK 142968 113763 AIM ELECTRONICS INC 529.24 06/12/2007 PK 142969 124417 AL'S ORNAMENTAL IRON & WELDING 12,750.00 06/12/2007 PK 142970 124374 ALBRECHT, BROOKS 84.99 06/12/2007 PK 142971 122030 ALPHA WIRELESS 53.25 06/12/2007 PK 142972 102430 AMERIPRIDE LINEN & APPAREL 391.76 06/1212007 PK 142973 105204 ARCTIC GLACIER PREMIUM ICE INC 375.85 06/12/2007 PK 142974 111041 ARROW TERMINAL LLC 118.49 06/1212007 PK 142975 124397 ARTMANN, SHARON 55.29 06/1212007 PK 142976 102207 BACHMAN'S 2,605.50 06/12/2007 PK 142977 102898 BAILEY NURSERIES 13,573.69 06/12/2007 PK 142978 121462 BARN YARD, THE 800.00 06/1212007 PK 142979 105557 BENNETT MATERIAL HANDLING 402.22 06/1212007 PK 142980 102255 BERKLEY RISK ADMINISTRATORS 950.00 06/12/2007 PK 142981 101916 BERNICK COMPANIES 633.20 06/12/2007 PK 142982 119212 BLOCK FARMS & TRUCKING INC. 3,066.66 06112/2007 PK 142983 102729 BOLTON & MENK INC. 2,248.50 06/12/2007 PK 142984 124410 BRANDEL, THERESA 48.00 06/1212007 PK 142985 101987 BRANDON TIRE CO 157.82 06/1212007 PK 142986 102752 BRAUN INTERTEC CORP 2,279.81 06/1212007 PK 142987 122919 BRYAN STREICH TRUCKING 1,206.55 06/1212007 PK 142988 121089 BUSHMAN, RAQUEL 465.70 06/12/2007 PK 142989 102136 BUSINESSWARE SOLUTIONS 2,608.67 06/12/2007 PK 142990 102456 C & L DISTRIBUTING 99,401.54 06/12/2007 PK 142991 121311 CARQUEST OF HUTCHINSON 8.48 06/12/2007 PK 142992 102061 CASH WISE 52.36 06/1212007 PK 142993 104391 CENTRAL HYDRAULICS 12.49 06/1212007 PK 142994 102253 CENTRAL MCGOWAN 129.29 06/12/2007 PK 142995 109364 CENTURY FENCE 2,155.00 06/12/2007 PK 142996 124411 CHATEAU ST CROIX WINERY & VINE 179.00 06/1212007 PK 142997 110665 CHOICEPOINT SERVICES INC 64.00 06/1212007 PK 142998 105423 CINDY'S HOUSE OF FLORAL DESIGN 38.87 06112/2007 PK 142999 102741 COBORN'S INCORPORATED 1,097.21 06/1212007 PK 143000 102227 COLLINS BROTHERS 451.64 06/12/2007 PK 143001 102213 COMMISSIONER OF TRANSPORTATION 60.00 06/12/2007 PK 143002 102484 CORPORATE EXPRESS 1,778.16 06/12/2007 PK 143003 120246 COUNTRYSIDE FLAGPOLE 797.69 06/1212007 PK 143004 121640 CREEKSIDE SOILS 17.30 06/12/2007 PK 143005 102289 CROW RIVER GLASS 196.01 06/12/2007 PK 143006 123968 CROW RIVER OFFICALS ASSN. 3,894.00 06/12/2007 PK 143007 102220 CROW RIVER PRESS INC 297.62 06/1212007 PK 143008 121037 CROW RIVER TITLE GUARANTY INC. 15,000.00 06/1212007 PK 143009 101864 DAAK REFRIGERATION 46.00 06/12/2007 PK 143010 119458 DAVE'S PALLET SERVICE 2,430.00 Void Amou - - e 06/12/2007 PK 143011 102488 DAY DISTRIBUTING 8,184.55 06112/2007 PK 143012 124398 DETTMAN, AMANDA 39.88 06/1212007 PK 143013 102698 DEVRIES, RANDY 58.98 06/1212007 PK 143014 103128 DIRECT SAFETY CO 139.35 06112/2007 PK 143015 104084 DONOHUE & ASSOC 9,137.26 06/12/2007 PK 143016 102776 DORSEY & WHITNEY 13,977.50 06/12/2007 PK 143017 102275 DPC INDUSTRIES INC 1,769.55 06/12/2007 PK 143018 124412 DRAIN PROS. INC. 150.00 06/12/2007 PK 143019 113181 DROP.N-GO SHIPPING. INC . 9.25 06/1212007 PK 143020 102236 DUININCK BROS INC. 37,583.36 06/1212007 PK 143021 102847 DYNA SYSTEMS 172.58 06/1212007 PK 143022 104415 EARTH TECH 52,500.00 06/12/2007 PK 143023 123714 EBERT CONSTRUCTION 177,862.24 06/12/2007 PK 143024 102354 ECONO FOODS 545.59 06/12/2007 PK 143025 105115 ELECTRICAL INSTALLATION & MAIN 125,774.09 06/12/2007 PK 143026 121312 ENGINEERING REPRO SYSTEMS 8,619.52 06/1212007 PK 143027 104671 ESS BROTHERS & SONS 1,131.03 06/1212007 PK 143028 110034 EXTREME BEVERAGE LLC 192.00 06/12/2007 PK 143029 104137 FASTENAL COMPANY 552.10 06/1212007 PK 143030 122555 FIRE SAFETY USA. INC 539.00 06/12/2007 PK 143031 102094 FISHER SCIENTIFIC 169.15 06/1212007 PK 143032 102519 FORESTRY SUPPLIERS 211.40 06/12/2007 PK 143033 123078 FRED HOLASEK & SON INC 2,206.85 06/12/2007 PK 143034 102526 G & K SERVICES 1,436.57 06/1212007 PK 143035 124399 GILBERT, STACY 28.00 06/1212007 PK 143036 124364 GIRARD, MARK 30.00 06/12/2007 PK 143037 105159 GOODPOINTE TECHNOLOGY 7,800.00 06/12/2007 PK 143038 102823 GOVERNMENT FINANCE OFFICERS AS 730.00 06/1212007 PK 143039 102087 GRAINGER PARTS OPERATIONS 1,075.68 06/12/2007 PK 143040 122907 GRIDOR CONSTRUCTION 186,720.00 06/1212007 PK 143041 101874 GRIGGS & COOPER & CO 23,457.37 06/1212007 PK 143042 108668 GRUFRUFF DESIGN 427.65 06/12/2007 PK 143043 102783 HAARSTAD, EARL 60.00 06/12/2007 PK 143044 102529 HACH COMPANY 219.18 06/12/2007 PK 143045 102451 HANSEN D1ST OF SLEEPY EYE 2,689.80 06/12/2007 PK 143046 101958 HANSON & VASEK CONSTRUCTION 3,856.00 06/12/2007 PK 143047 103188 HANTGE,ROBERT 3,298.97 0611212007 PK 143048 104257 HARPER BROOMS 333.57 06/12/2007 PK 143049 102401 HARTS AUTO SUPPLY 88.57 06/12/2007 PK 143050 102412 HAWKINS WATER TREATMENT GROUP 2,771.70 06/1212007 PK 143051 102546 HCVN. TV 15,257.06 06/12/2007 PK 143052 121491 HEDEEN,BRENDA 15.00 06/12/2007 PK 143053 103240 HEMMAH, KATHY 39.42 06/12/2007 PK 143054 102701 HENRY'S WATERWORKS INC 722.28 06/12/2007 PK 143055 116866 HEWLETT-PACKARD CO 2,358.38 06/12/2007 PK 143056 102518 HILL YARD / HUTCHINSON 206.37 06/12/2007 PK 143057 124400 HOEGER.LERDAL, SOREN 88.94 06112/2007 PK 143058 103166 HOLIDAY INN DULUTH 424.88 06/12/2007 PK 143059 102732 HOLIDAY INN ST CLOUD 69.95 06/12/2007 PK 143060 117921 HOMETOWN SPORTS 393.40 06/12/2007 PK 143061 102961 HRA 6,500.00 06112/2007 PK 143062 124376 HUSKY SPRING 94.06 . . . . . - 0611212007 PK 143063 102534 HUTCH AUTO BODY 300.00 0611212007 PK 143064 102363 HUTCH SPORT SHOP 109.98 06112/2007 PK 143065 102319 HUTCHINSON AREA HEALTH CARE 70.00 06112/2007 PK 143066 102530 HUTCHINSON CO-OP 19,280.74 0611212007 PK 143067 102537 HUTCHINSON LEADER 3,926.29 06112/2007 PK 143068 102540 HUTCHINSON PLUMBING & HEATING 672.20 06112/2007 PK 143069 102541 HUTCHINSON TELEPHONE CO 2,045.55 06/12/2007 PK 143070 105161 HUTCHINSON UTILITIES 73,992.18 0611212007 PK 143071 102543 HUTCHINSON WHOLESALE 578.61 0611212007 PK 143072 102635 HUTCHINSON, CITY OF 7,079.47 06/12/2007 PK 143073 103246 HUTCHINSON, CITY OF 12,123.89 06112/2007 PK 143074 105160 HUTCHINSON, CITY OF 21,565.46 0611212007 PK 143075 103051 INFRATECH 265.02 0611212007 PK 143076 117018 INTERNATIONAL CODE COUNCIL INC 20.50 06/1212007 PK 143077 103520 INTERSTATE BATTERY SYSTEMS OF 398.04 06/12/2007 PK 143078 120126 IOWA SECRETARY OF AGRICULTURE 10.00 06112/2007 PK 143079 124377 J & R ELECTRIC INC 1,078.00 06/1212007 PK 143080 102062 JACK'S UNIFORMS & EQUIPMENT 411.73 0611212007 PK 143081 121385 JACOBSEN, MIKE 130.00 0611212007 PK 143082 111836 JACOBSEN. SEPTEMBER 36.93 06/12/2007 PK 143083 124381 JANWAY COMPANY USA INC 418.85 06112/2007 PK 143084 121990 JAY MALONE MOTORS 170.17 06/1212007 PK 143085 102208 JEFF'S ELECTRIC 3,459.68 0611212007 PK 143086 102554 JERABEK MACHINE SERV 22.32 0611212007 PK 143087 104564 JLR GARAGE DOOR SERVICE 358.6,0 06/12/2007 PK 143088 101938 JOHNSON BROTHERS LIQUOR CO. 19,371.56 06/12/2007 PK 143089 118645 JUERGENSEN, JUSTIN 84.99 0611212007 PK 143090 1105()7 JUNGCLAUSIMPLEMENTINC 534.89 06112/2007 PK 143091 102555 JUUL CONTRACTING CO 18,623.30 06/12/2007 PK 143092 122380 K & S MILLRIGHTS, INC 660:00 06/12/2007 PK 143093 124402 KANDIYOHI COUNTY & CITY OF WIL 15.00 0611212007 PK 143094 122236 KIEPER, HELEN 42.00 06/1212007 PK 143095 102466 KKLN 1,084.00 0611212007 PK 143096 104416 KOHLS SWEEPING SERVICE 220.50 06/12/2007 PK 143097 124401 KOHLS, BEN 110.46 06/12/2007 PK 143098 118063 KOSEK, JENESSA 49.99 06/1212007 PK 143099 105283 KUCERA. DAVID 35.00 0611212007 PK 143100 102561 L & P SUPPLY CO 2,409.44 06/12/2007 PK 143101 124403 LANDFORM 959.45 06/12/2007 PK 143102 113892 LANDSCAPE CONCEPTS, INC 71.00 06/1212007 PK 143103 124146 LANGE, DAVID 60.00 0611212007 PK 143104 105525 LANO EQUIPMENT OF NORWOOD 624.12 06/12/2007 PK 143105 102125 LARAWAY ROOFING INC 11,500.00 06/12/2007 PK 143106 101984 LOCHER BROTHERS INC 49,184.50 06/1212007 PK 143107 120329 LUNDIN, HAROLD 15().00 0611212007 PK 143108 102145 M-R SIGN 197.26 06/12/2007 PK 143109 102571 MACQUEEN EDUIP INC 3,182.01 06/12/2007 PK 143110 124406 MADSEN. BENJAMIN 100.00 06/1212007 PK 143111 103744 MAIN STREET SPORTS BAR 29.23 0611212007 PK 143112 105140 MARSHALL CONCRETE PRODUCTS 17.22 06112/2007 PK 143113 124405 MCCARTHY, ANITA 27.20 06/12/2007 PK 143114 109943 MCLEOD COUNTY FAIR 35.00 tilt - e 06/12/2007 PK 143115 102574 MEEKER WASHED SAND & GRAVEL 569.94 06/12/2007 PK 143116 112400 ME NARDS - HUTCHINSON 830.34 06/1212007 PK 143117 102576 MERRILL, KENNETH B. 355.80 06/1212007 PK 143118 122894 METEORLOGIX 149.00 06/1212007 PK 143119 102575 MINI BIFF 75.82 08/12/2007 PK 143120 102449 MINNESOTA CHILD SUPPORT PAYMEN 223.93 06/1212007 PK 143121 124148 MINNESOTA MAILING SOLUTIONS 1,267.35 0611212007 PK 143122 110916 MINNESOTA NURSERY & LANDSCAPE 425.00 06/1212007 PK 143123 102586 MINNESOTA REC & PARK ASSC 60.00 06/12/2007 PK 143124 102580 MINNESOTA SAFETY COUNCIL 49.55 06/1212007 PK 143125 105157 MINNESOTA SHREDDING 114.22 06/12/2007 PK 143126 103384 MINNESOTA STATE BAR ASSOC 282.00 06/1212007 PK 143127 102583 MINNESOTA VALLEY TESTING LAB 2,766.70 06/1212007 PK 143128 124133 MODERN TOWING 149.10 06/1212007 PK 143129 124379 MOORE, ERIC 67.90 06/1212007 PK 143130 118643 NAPA AlITO PARTS 521.44 06/12/2007 PK 143131 102650 NCL 81.46 06/1212007 PK 143132 122031 NORTH CENTERAL LABORATORIES 218.75 06/1212007 PK 143133 118653 NORTHERN BAlANCE & SCALE 357.00 06/1212007 PK 143134 103014 NORTHERN BUSINESS PRODUCTS 166.89 06/12/2007 PK 143135 102591 NORTHERN STATES SUPPLY INC 271.59 06/1212007 PK 143136 119358 OFFICE OF ENTERPRISE TECHNOLOG 188.33 06/1212007 PK 143137 102592 OLSON'S LOCKSMITH 206.17 06/1212007 PK 143138 104597 OPS SYSTEMS 1,600.00 06/1212007 PK 143139 105169 OSTER,REYNE 48.00 06/1212007 PK 143140 102134 OlITDOOR MOTION 135.00 06/1212007 PK 143141 107535 PATRICK, STACEY 20.00 06/1212007 PK 143142 102187 PAUSTIS & SONS WINE CO 2,903.86 06/12/2007 PK 143143 122185 PEAT INC. 5,886.78 06/1212007 PK 143144 101932 PELLlNEN LAND SURVEYING 215.00 06/1212007 PK 143145 101853 PHILLIPS WINE & SPIRITS 21,385.19 06/12/2007 PK 143146 102656 PIONEER 527.18 06/1212007 PK 143147 101908 PIONEERLAND LIBRARY SYSTEM 33,570.00 06/1212007 PK 143148 102457 PRCE 8,248.84 06/12/2007 PK 143149 102493 PREMIER TECH PACKAGING 1,494.15 06/12/2007 PK 143150 114391 PRO AlITO & TRANSMISSION REPAIR 1,007.11 06/1212007 PK 143151 124365 PROVENCHER-PEREZ, MARISA 200.00 06/1212007 PK 143152 102598 QUADE ELECTRIC . 105.80 06/1212007 PK 143153 102212 QUALITY FLOW SYSTEMS 435.00 06/1212007 PK 143154 102052 QUALITY WINE & SPIRITS CO. 16,033.31 06/1212007 PK 143155 102384 RDO EQUIPMENT CO. 2.093.20 06/1212007 PK 143156 124356 REFLECTIVE APPAREL FACTORY INC 321.77 06/1212007 PK 143157 102395 REINER IRRIGATION & SEPTIC INC 151.75 06/12/2007 PK 143158 124209 RIES FARMS 16,398.00 06/1212007 PK 143159 104149 RIVER VALLEY TRUCK CENTERS 96.32 06/12/2007 PK 143160 123287 ROECKER, DONALD 1,200.00 06/12/2007 PK 143161 121677 RUCKS, CAMERON D. 1,166.35 06/1212007 PK 143162 102225 RUNNING'S SUPPLY 1,611.36 06/1212007 PK 143163 102621 SAL TMAN LLC 55.38 06/1212007 PK 143164 102436 SARA LEE COFFEE & TEA 362.70 06/1212007 PK 143165 104268 SCHAEFFER MFG CO 382.44 06/1212007 PK 143166 102606 SCHMELING OIL CO 607.42 . e . e . I 06/1212007 PK 143167 114008 SCHOETTMER.LAURA 31.00 06/12/2007 PK 143168 120700 SCHOOL DIST # 423 30.817.00 06/12/2007 PK 143169 115821 SEPPEL T, MILES 396.39 06/1212007 PK 143170 102637 SEVEN WEST WASH & DRY 266.36 06/1212007 PK 143171 102719 SHAW, KAREN 60.00 06/1212007 PK 143172 124380 SHIGO & TREES ASSOCIATES LLC 30.56 06/12/2007 PK 143173 102609 SHOPKO 32.97 06/12/2007 PK 143174 119913 SIEMENS WATER TECHNOLOGIES COR 8,125.90 06/1212007 PK 143175 102610 SIMONSON LUMBER CO 50.64 06/1212007 PK 143176 124215 SMILE MAKERS 279.30 06/1212007 PK 143177 102204 SOIL CONTROL LAB 144.00 06/1212007 PK 143178 102611 SORENSEN'S SALES & RENTALS 40.47 06/1212007 PK 143179 103515 SPECTRUM SCREEN PRINTING 1,143.52 06/1212007 PK 143180 102612 STANDARD PRINTING 82.54 06/1212007 PK 143181 124404 STATE OF MINNESOTA 24.00 06/1212007 PK 143182 123568 STOCKMAN TRANSFER, INC. 1,950.00 06/1212007 PK 143183 123663 STRUCTURAL BUILDINGS INC 38,929.00 06/12/2007 PK 143184 105075 T.l.P.INC 203.00 06/1212007 PK 143185 121020 TAPS-LYLE SCHROEDER 20.00 06/1212007 PK 143186 110204 TAYLORS FALLS SCENIC BOAT TOUR 893.63 06/1212007 PK 143187 102659 TEK MECHANICAL 434.08 06/1212007 PK 143188 124407 THOMPSON. ALETTA 42.00 06/12/2007 PK 143189 119159 TOTAL FIRE PROTECTION 105.44 06/1212007 PK 143190 102618 TOWN & COUNTRY TIRE 253.34 06/1212007 PK 143191 102620 TRI COUNTY WATER 431.71 - 06/1212007 PK 143192 102454 TRI-GOUNTY BEVERAGE & SUPPLY 161.80 06/12/2007 PK 143193 102447 TRICO TCWIND, INC 432.78 06/1212007 PK 143194 124419 TRUNK HWY 15 COALITION 5,200.00 06/1212007 PK 143195 102619 TWO WAY COMMUNICATIONS INC 1,577.22 06/1212007 PK 143196 123085 UNITED RENTALS NORTHWEST INC 52.73 06/1212007 PK 143197 119701 UNUM LIFE INS COMPANY OF AMERI 3,318.06 06/1212007 PK 143198 101974 VIKING BEER 10,154.75 06/1212007 PK 143199 102132 VIKING COCA COLA 567.30 06/1212007 PK 143200 121147 VSS-VERTECH SOLUTIONS & SERVIC 74.50 06/1212007 PK 143201 124366 WAGNER-LANGE, MELANIE 200.00 06/1212007 PK 143202 122357 WASTE MANAGEMENT-SAVAGE 20,100.74 06/12/2007 PK 143203 105064 WASTE MANAGEMENT-SPRUCE RIDGE 438.33 06/1212007 PK 143204 105122 WASTE MANAGEMENT-WINSTED 36,260.80 06/1212007 PK 143205 102641 WELDERS SUPPLY CO 52.54 06/12/2007 PK 143206 110738 WESTMOR INDUSTRIES, LLC 224.46 06/12/2007 PK 143207 103452 WINE COMPANY, THE 2,406.10 06/1212007 PK 143208 105208 WOLD ARCHITECTS & ENGINEERS 6,341.57 06/1212007 PK 143209 124418 WRM SERVICES, INC. 1,050.00 06/1212007 PK 143210 102632 XEROX CORP 652.48 06/12/2007 PK 143211 104928 YAMAHA MOTORSPORTS 62.01 06/1212007 PK 143212 103980 ZARNOTH BRUSH WORKS 2,570.91 06/1212007 PK 143213 102634 ZIEGLER INC 191.34 06/1212007 PK 143214 101919 AMERICAN FAMILY INS CO. 152.31 06/12/2007 PK 143215 101872 HAR.T. 427.88 06/1212007 PK 143216 102635 HUTCHINSON, CITY OF 783.41 - 06/1212007 PK 143217 101873 ICMA RETIREMENT TRUST 4,301.92 06/1212007 PK 143218 101876 ING LIFE & ANN CO. 1,445.00 . 06/12/2007 PK 143219 102449 MINNESOTA CHILD SUPPORT PAYMEN 1.019.76 06/12/2007 PK 143220 101914 NCPERS LIFE INS. 556.00 06/12/2007 PK 143221 101675 ORCHARD TRUST COMPANY, LLC 300.00 0611212007 PK 143222 102096 PRUDENTIAL MUTUAL FUNDS 30.00 1,450,401.25 Account Num # 1,450,401.25 . . . . .