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10-28-2025HUTCHINSON CITY COUNCIL MEETING MINUTES TUESDAY, OCTOBER 28, 2025 CITY CENTER — COUNCIL CHAMBERS (The City Council is provided background information fog° agenda iten2s in advance by city staff, committees and boards. Many decisions regarding agenda iten2s are based upon this information as well as: City policy and practices, inputfi one constituents, and other questions or information that has not yet been presented or discussed regarding an agenda iten2.) 1. CALL MEETING TO ORDER — 5:30 P.M. Mayor Gary Forcier called the meeting to order. Members present were Tim Burley, Pat May, Chad Czmowski and Dave Sebesta. Also present were Matt Jaunich, City Administrator and Marc Sebora, City Attorney. (a) Approve the Council agenda and any agenda additions and/or corrections Matt Jaunich, City Administrator, requested that an item be added as Item 14.5. This item will be to consider purchasing playground equipment for North Park. Motion by Burley, second by Sebesta, to approve the agenda with the additional item noted. 2. INVOCATION — A moment of silence was held in lieu of the invocation. (The invocation is a voluntary expression of the private citizen, to andfor the City Council, and is not intended to affiliate the City Council with, or express the City Council's preferencefor, any religious/spiritual organization. The views or beliefs expressed by the invocation speaker have not been previously reviewed or approved by the Council or staff) 3. PLEDGE OF ALLEGIANCE 4. RECOGNITION OF GIFTS, DONATIONS AND COMMUNITY SERVICE TO THE CITY PUBLIC COMMENTS (This is an opportunity {on° members of the public to address the City Council. If the topic you would like to discuss is on the agenda, please ask the Mayor if he will be accepting public comments during the agenda item if not a public hearing. If you have a question, concern or comment, please ask to be recognized by the mayor —state your name and addressfor the record. Please keep comments under 5 minutes. Individuals wishing to speakfor more than five minutes should ask to be included on the agenda in advance of the meeting. All con2n2ents are appreciated, but please refi^ain fi^on2 personal or derogatory attacks on individuals) 5. CITIZENS ADDRESSING THE CITY COUNCIL 6. APPROVAL OF MINUTES (a) Regular Meeting of October 14, 2025 Motion by Czmoweski, second by Sebesta, to approve the minutes as presented. Motion carried unanimously. CONSENT AGENDA (The iten2s listed fog° consideration will be enacted by one motion unless the Mayor, a member of the City Council or a city staff nieniber requests an item to be removed. Traditionally iten2s are not discussed) 7. APPROVAL OF CONSENT AGENDA I (a) Consideration for Approval of Resolution No. 15925 — Resolution Adopting Findings of Fact and Reasons for Approval of Conditional Use Permit for a 20-Unit Memory Care Facility Located at 955 Golf Course Road NW With Favorable Planning Commission Recommendation (b) Consideration for Approval of Resolution No. 15926 — Resolution Adopting Findings of Fact and Reasons for Approval of a Preliminary Plat for Shepards Meadow With Favorable Planning Commission Recommendation CITY COUNCIL MINUTES October 28, 2025 (c) Consideration for Approval of Resolution No. 15929 — Resolution Adopting Findings of Fact and Reasons for Approval of a Site Plan Review for a Scooters Coffee Shop Located at 15 3rd Avenue NW With Favorable Planning Commission Recommendation (d) Consideration for Approval of Resolution No. 15927 — Resolution Setting Interest Rate for the 2025 Adopted Assessment Rolls (e) Consideration for Approval of Resolution No. 15928 — Resolution for Certification of Special Assessments from the City of Hutchinson to McLeod County Auditor (f) Consideration for Approval of Tiling Agreement with Terry Wendorff for Airport Agricultural Land Drainage (g) Consideration for Approval of 2026 License Renewals (h) Claims, Appropriations and Contract Payments — Register A Motion by Czmowski, second by May, to approve Consent Agenda I. Motion carried unanimously. 8. APPROVAL OF CONSENT AGENDA II (a) Claims, Appropriations and Contract Payments — Register B Motion by Burley, second by Sebesta, with Forcier abstaining, to approve Consent Agenda H. Motion carried unanimously. PUBLIC HEARINGS — 5:30 P.M. 9. APPROVE SECOND READING OF ORDINANCE NO. 25-865 — AN ORDINANCE GRANTING A FRANCHISE TO ROBERT HANTGE OF LIBRARY SQUARE EAST LLC TO PLACE A FLAGPOLE ON CITY PROPERTY LOCATED AT 115 lsT AVENUE SOUTHEAST Matt Jaunich, City Administrator, noted that the first reading of this ordinance was held at the last City Council meeting. During the Hassan Street reconstruction project this past Summer, a flagpole at the corner of 1st Avenue SE and Hassan Street was taken down in error. It had been located in the crosswalk area and no franchise agreement could be found on file. Upon removal, the owners of the business building at 115 1" Avenue SE expressed concern with removal of the flagpole. Staff has worked to find a suitable relocation in the right-of-way satisfying the interests of the building owners and the City. A franchise agreement is required, along with a public hearing, for approval of this. Motion by Czmowski, second by May, to close the public hearing. Motion carried unanimously. Motion by Czmowski, second by Burley, to approve second reading and adoption of Ordinance No. 25-865. Motion carried unanimously. 10. ESTABLISHMENT OF TIF DISTRICT 4-25, REDEVELOPMENT OF TIF DISTRICT FOR THE JORGENSEN HOTEL PROJECT AND DECERTIFICTION OF TIF DISTRICT 4-22 (a) Approve/Deny Resolution No. 15930 — Resolution Approving the Adoption of a Modification of a Development Program for Municipal Development District No. 4; Establishing Tax Increment Financing District No. 4-25 Within Municipal Development District No. 4; Approving the Tax 2 CITY COUNCIL MINUTES October 28, 2025 Increment Financing Plan Therefore; Authorizing an Interfund Loan for Tax Increment Financing District No. 4-25; Approving a Development Agreement and Approving the Decertification Tax Increment Financing District No. 4-22 Within Municipal Development District No. 4 Miles Seppelt, EDA Director, presented before the Council. Mr. Seppelt explained that 10 Main Street LLC is proposing to construct an approximately 40-unit hotel on the site of the current Jorgensen Hotel and Kock Jewelry buildings. The new building would be a boutique hotel and include up to 3000 square feet of ground floor commercial space. The project may include a certain amount of convention space, but this is yet to be determined. Demolition of the existing buildings would take place this Fall/Winter. As part of the project, it is being recommended to establish TIF District 4-25, a redevelopment TIF District for the Jorgensen Hotel project and decertification of TIF District 4-22 which is the existing TIF District on the hotel property. The establishment of a new TIF District requires this public hearing. Mr. Seppelt described the current condition of the Jorgensen Hotel building which is in deteriorating condition. Mr. Seppelt noted that multiple attempts have been made to redevelop the building by private developers and entrepreneurs. Brian Forcier, Titanium Partners/Jorgensen Hotel developer, presented before the Council. Mr. Forcier reminded the Council that he had developed the Cobblestone Hotel approximately 10 years ago. Mr. Forcier explained that his first goal in his business is to redevelop old buildings. Mr. Forcier noted that he bought the Jorgensen Hotel building in 2022 and has since discovered that the building wasn't able to be refurbished, but rather best to be demolished and built new. He further noted that a TIF District is required for this project in order to make it financially feasible. He noted that he and his team are committed to this project. His goal is to start interior demolition work in December with exterior demolition in the Spring. Mr. Seppelt noted that this is an estimated $12 million project with an estimated $3.9 million annual impact to the community. Mr. Seppelt described in detail what a redevelopment TIF district is and how it works. A TIF District captures property taxes and puts it back into the specific project for a certain term. TIF Districts have been used for large scale projects such as the State Theater and Cornerstone Commons. John McNab, 116 North High Drive, presented before the Council. Mr. McNab asked about the decertification of TIF District 4-22. Mr. Seppelt explained the determination used that that TIF district could be decertified. Motion by Czmowski, second by May, to close the public hearing. Motion carried unanimously. Motion by May, second by Czmowski, to approve Resolution No. 15930. Motion carried unanimously. COMMUNICATIONS, REQUESTS AND PETITIONS (The purpose of this portion of the agenda is to provide the Council with information necessary to craft wisepolicy. Includes items like monthly or annual reports and coniniunications f on2 other entities.) 11. CENTER FOR THE ARTS ANNUAL UPDATE Jim Lansing, Center for the Arts, presented before the Council. Mr. Lansing introduced himself as the new executive director and has been on staff for eight weeks. Mr. Lansing described the gallery exhibitions held in 2025, the art classes, and outreach events. Mr. Lansing spoke about the economic impact of art and culture organizations and audiences in the community which is estimated at $2.2 million and described how art builds community. Mr. Lansing spoke about the partner organizations with Center for the Arts and noted upcoming shows. UNFINISHED BUSINESS CITY COUNCIL MINUTES October 28, 2025 NEW BUSINESS 12. APPROVE/DENY LOAN AGREEMENT BY AND BETWEEN THE CITY OF HUTCHINSON AND 10 MAIN STREET, LLC Miles Seppelt, EDA Director, presented before the Council. Mr. Seppelt explained that a loan agreement with 10 Main Street LLC is being considered for the Jorgensen Hotel redevelopment project. The purpose of the $350,000 loan is to help make the project economically feasible for the developer and provide an incentive to construct a new hotel on the site as soon as possible. The loan would be funded from three sources: the EDA Operations fund, the Economic Development Loan fund and the Downtown Revolving Loan fund. The loan would be 100% forgiven if the developer completes the new hotel and obtains a certificate of occupancy within 60 months of the loan origination date. To attain loan forgiveness, construction of the new building would most likely have to begin within 45 months at the latest. Depending on economic conditions, primarily interest rates, construction could begin as soon as Spring 2026. Mr. Seppelt provided more details contained in the loan agreement. Council Member Burley asked where the funds come from within the EDA funds. Mr. Seppelt explained each fund and how loan funds and reserves are incorporated. Motion by Burley, second by Sebesta, to approve loan agreement with 10 Main Street LLC. Motion carried unanimously. 13. APPROVE/DENY FIRST READING OF ORDINANCE NO. 25-866 - AN ORDINANCE TO REZONE PROPERTY AT 135 NORTH HIGH DRIVE NE WITH FAVORABLE PLANNING COMMISSION RECOMMENDATION Dan Jochum, Planning Director, presented before the Council. Mr. Jochum explained that Kuepers Inc., developer of property at 135 North High Drive NE, has submitted a rezoning application. The property is currently zoned R-2 Medium Density Residential. If this rezoning application is approved, the developer is looking at constructing an apartment complex. The request is to have the property rezoned to mixed use. Motion by Czmowski, second by May, to approve first reading of Ordinance No. 25-866. Motion carried unanimously. 14. APPROVE/DENY RESOLUTION NO. 15924 — RESOLUTION APPROVING 2026 EMPLOYEE BENEFITS PACKAGE Kellie Wendland, Human Resources Director, presented before the Council. Ms. Wendland explained that benefits for 2026 will see no major changes to plan designs, but some cost increases. Health Partners is imposing a 14% premium increase to the group plan. The premium increase will be covered by both the employer and employee keeping the premium split the same as 2025. There will be a carrier change from UNUM to MetLife for life insurance, AD&D and LTD. This allows the City to secure a .83 rate for the MN Paid Family Medical Leave which goes into effect in 2026. The state rate is .88. Other benefits remain the same for 2026. It was noted that a 15% premium increase was budgeted in the preliminary budget. Motion by Czmowski, second by May, to approve Resolution No. 15924. Motion carried unanimously. 11 CITY COUNCIL MINUTES October 28, 2025 14.5 APPROVE/DENY PURCHASE OF PLAYGROUND EQUIPMENT FOR NORTH PARK Matt Jaunich, City Administrator, explained that the PRCE Department is seeking approval to purchase new playground equipment for North Park. This purchase is necessary to replace the existing playground, which has exceeded its life expectancy and requires removal. North Park was identified in the City's Playground Replacement Fund Plan as the park scheduled for replacement in 2026. The playground will be funded 50150 between the City of Hutchinson and the Hutchinson School District. Total project cost is $119,304.40. The Playground Replacement Fund has allocated $60,000 for this project, and the Hutchinson School District has budgeted an equal amount for the 2025-2026 school year. The City of Hutchinson will purchase the playground equipment and pay for the installation, with the School District reimbursing the City for half of the total project cost. A quote from Midwest Playscapes includes the playground system and features, freight, full installation, and engineered wood fiber surfacing. Through a fall promotion, the playground unit and additional equipment are offered at a discounted rate, allowing the City to include more play features within the allocated budget. Additional comparison quotes were obtained for this project as well. The new playground will be installed in Summer 2026. Motion by Czmowski, second by May, approve purchase of playground equipment for North Park. Motion carried unanimously. GOVERNANCE (The purpose of this portion of the agenda is to deal with organizational development issues, includingpolicies, pei orniances, and othermatters that manage the logistics of the organization. May include monitoring reports, po icy development and governance process items.) 15. MINUTES/REPORTS FROM COMMITTEES, BOARDS OR COMMISSIONS �a) City of Hutchinson Financial Report and Investment Reports for September 2025 b) Planning Commission Minutes from September 16, 2025 MISCELLANEOUS 16. STAFF UPDATES Tom Gifferson — Chief Gifferson noted that the HPD and other financial institutions are hosting a fraud seminar at the Event Center on Thursday October 30, 2025. Matt Jaunich — Mr. Jaunich reminded the Council of the City recognition event on November 6, 2025. He also noted that the next City Council meeting is scheduled for Wednesday November 12, 2025, as Tuesday falls on Veterans' Day which is a holiday. Gary Forcier — Mayor Forcier noted at the last Airport Commission meeting the group toured Camp Craig's (Civil Air Patrol's) new hangar. 17. COUNCIL/MAYOR UPDATE ADJOURNMENT Motion by May, second by Czmowski, to adjourn at 6:40 p.m. Motion carried unanimously. CITY COUNCIL MINUTES October 28, 2025 ATTEST: Gary T. Forcier Matthew Jaunich Mayor City Administrator