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AGENDA
REGULAR MEETING - HUTCHINSON CITY COUNCIL
TUESDAY, AUGUST 28, 2007
I. CALL TO ORDER - 5:30 P.M.
2. INVOCATION -Rev. Greg Nelson, Bethlehem United Methodist Church
3. PLEDGE OF ALLEGIANCE
4. PUBLIC COMMENTS
5. MINUTES
(a) REGULAR MEETING OF AUGUST 14,2007
(b) BID OPENING MINUTES OF AUGUST 13, 2007 (SAW LOGS)
Action - Motion to approve as presented
6. CONSENT AGENDA
(a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS
1. AIRPORT COMMISSION MINUTES OF JUNE 21, 2007, AND JULY 19,2007
PARKS, RECREATION, COMMUNITY EDUCATION BOARD MINUTES OF JUNE 4, 2007
HUTCHINSON HOUSING & REDEVELOPMENT AUTHORITY BOARD MINUTES OF JULY 17,
2007
HUTCHINSON HOUSING & REDEVELOPMENT AUTHORITY ANNUAL BOARD MEETING
MINUTES OF AUGUST 15,2006
PLANNING COMMISSION MINUTES OF JULY 17,2007
CITY OF HUTCHINSON FINANCIAL REPORT JULY 2007
CITY OF HUTCHINSON INVESTMENT REPORT JULY 2007
(b) RESOLUTIONS AND ORDINANCES
. 2.
3.
4.
5.
6.
7.
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1. ORDINANCE NO. 07-0469 - AN ORDINANCE ADOPTING THE 2007 EDITION OF THE
MINNESOTA STATE FIRE CODE (SECOND READING AND ADOPTION)
2. RESOLUTION NO. 13258 - RESOLUTION FOR PURCHASE OF ENGINEERING AGREEMENT
FOR SERVICES FOR MERCURY AND WATER SYSTEM WITH DONOHUE & ASSOCIATES
3. RESOLUTION NO. 13257 - RESOLUTION TO PAR TICIP A TE IN MCLEOD COUNTY HAZARD
MITIGATION PLAN
CITY COUNCIL AGENDA - AUGUST 28, 2007
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(c) PLANNING COMMISSION ITEMS
1. CONSIDERATION OF CONDITIONAL USE PERMIT, SITE PLAN AND V ACA TION OF
DRAINAGE AND UTILITY EASEMENTS TO ALLOW A CHARTER SCHOOL FACILITY IN
THE I-I (LIGHT INDUSTRIAL) DISTRICT LOCATED AT 100011010 5TH AVENUE
SOUTHEAST WITH FAVORABLE PLANNING COMMISSION RECOMMENDATION
(ADOPTING RESOLUTION NO. 13255 AND WAIVING FIRST READING AND SETTING
SECOND READING AND ADOPTION OF ORDINANCE NO. 07-0472 FOR SEPTEMBER 11,
2007)
2. CONSIDERATION OF CONDITIONAL USE PERMIT TO MOVE A HOUSE TO I65-5TH
A VENUE NORTHWEST REQUESTED BY PAUL AND ROSE BOLDUC WITH FAVORABLE
PLANNING COMMISSION RECOMMENDATION (ADOPT RESOLUTION NO. 13254)
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3. CONSIDERATION OF ZONING ORDINANCE AMENDMENT REGARDING NON-
CONFORMING USES AND STRUCTURES WITH FAVORABLE PLANNING COMMISSION
RECOMMENDATION (WAIVING FIRST READING AND SETTING SECOND READING AND
ADOPTION OF ORDINANCE NO. 07-0468 FOR SEPTEMBER 11,2007)
(d) APPOINTMENTS TO PUBLIC ARTS COMMISSION
o TOM WIRT TO AUGUST 2008
o BUZZ BURICH AUGUST 2009
o TERRY KEMPFERT AUGUST 2010
o JOANNE WILMERT AUGUST 2010
o JIM HAUGEN TO JANUARY 2008 (COUNCIL REPRESENTATIVE)
(e) CONSIDERATION FOR APPROVAL OF TRANSIENT MERCHANT LICENSE FOR CHARLES
HOMIER JR. AT NATIONAL GUARD ARMORY
Action - Motion to approve consent agenda
7. PUBLIC HEARINGS - 6:00 P.M.
(a) 2008 BUDGET DISCUSSION
Action -
(b) CONSIDERATION OF APPROVING THE GRANTING OF A BUSINESS SUBSIDY TO
CUSTOMER ELATION CALL CENTER AND APPROVING THE FORMS OF A BUSINESS SUBSIDY
AGREEMENT (ADOPT RESOLUTION NO. 13259)
Action - Motion to reject - Motion to approve
8. COMMUNICATIONS, REOUESTS AND PETITIONS
(a) PARKING OF TRACTOR TRAILERS NEAR MAPLE STREET/NORTHWOODS A VENUE AS
REQUESTED BY RUSS MERKINS
Action -
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CITY COUNCIL AGENDA - AUGUST 28, 2007
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UNFINISHED BUSINESS
(a) CONSIDERATION OF AMENDING SECTION 73.15 OF THE HUTCHINSON CITY CODE
RELATED TO REGULATIONS OF ALL-TERRAIN VEHICLES
Action -
10. NEW BUSINESS
(a) CONSIDERATION FOR APPROVAL OF A ORDINANCE APPROVING THE DEBT SERVICE
RESERVE ESCROW AGREEMENT WITH HUTCHISON HEALTH CARE (ADOPT ORDINANCE NO.
07-0474)
Action - Motion to reject - Motion to approve
(b) CONSIDERATION FOR APPROVAL OF A ORDINANCE OUTLINGING ATTORNEY SERVICES
BETWEEN THE CITY OF HUTCHINSON AND HUTCHINSON HEALTH CARE (ADOPT
ORDINANCE NO. 07-0476)
Action - Motion to reject - Motion to approve
(q) .cONSIDERATION FOR APPROVAL OF A ORDINANCE APPROVING AN AGREEMENT BETWEEN
THE CITY OF HUTCHINSON AND HUTCHINSON HEALTH CARE TO DETERMINE THE VALUE
OF PROPERTY CURRENTLY USED BY THE HUTCHINSON AREA HEALTH CARE (ADOPT
ORDINANCE NO. 07-0475)
Action - Motion to reject - Motion to approve
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(d) CONSIDERATION FOR APPROVAL OF AN ORDINANCE APPROVING LEASING OF CERTAIN
LAND, BUILDINGS AND OTHER PROPERTY TO HUTCHINSON HEALTH CARE (ADOPT
ORDINANCE 07-0473)
Action - Motion to reject - Motion to approve
(e) CONSIDERATION FOR APPROVAL OF AN ORDINANCE APPROVING THE ARTICLES OF
INCORPORATION AND RESTATED BYLAWS OF HUTCHINSON HEALTH CARE (ADOPT
ORDINANCE NO. 07-0470)
Action - Motion to reject - Motion to approve
(t) HIGHWAY 7 CORRIDOR STUDY UPDATE AND REQUEST CITY COUNCIL WORKSHOP FOR
OCTOBER 9, 2007, AT 4:00 P.M. REGARDING HIGHWAY 7 CORRIDOR STUDY
Action - Motion to reject - Motion to approve
(g) CONSIDERATION OF LOT SPLIT AT 1316 DELAWARE STREET TO CREATE A NEW LOT
WITHIN THE SHORELAND DISTRICT AND FLOOD PLAN WITH FAVORABLE PLANNING
COMMISSION RECOMMENDATION (ADOPT RESOLUTION NO. 13256)
Action - Motion to reject - Motion to approve
(h) CONSIDERATION FOR APPROVAL OF TAX INCREMENT ASSISTANCE AGREEMENT DISTRICT
NUMBER 7
. Action - Motion to reject - Motion to approve
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CITY COUNCIL AGENDA - AUGUST 28, 2007
. (i) CONSIDERATION FOR APPROVAL OF PRELIMINARY AND FINAL PLAT FOR JENSEN SECOND
ADDITION WITH FAVORABLE PLANNING COMMISSION RECOMMENDATION (ADOPT
RESOLUTION NO. 13240)
11. MISCELLANEOUS
(a) COMMUNICATIONS
12. CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS
13. ADJOURN
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MINUTES
REGULAR MEETING - HUTCHINSON CITY COUNCIL
TUESDAY, AUGUST 14,2007
1. CALL TO ORDER - 5:30 P.M.
Mayor Steve Cook called the meeting to order. Members present were Bill Arndt, Jim Hau~en and Casey Stotts.
Council Member absent was Kay Peterson. Others present were Gary Plotz, City Admimstrator, Kent Exner,
City Engineer, and Marc Sebora, City Attorney.
2. INVOCATION - Rev. Brian Brosz, First Congregational- UCC Church, delivered the invocation.
3. PLEDGE OF ALLEGIANCE
4. PUBLIC COMMENTS
5. MINUTES
(a) REGULAR MEETING OF JULY 24, 2007
(b) BID OPENING MINUTES OF JULY 20, 2007 (CROW RIVER DAM REPLACEMENT)
Motion by Arndt, second by Stotts, to approve the minutes as presented. Motion carried unanimously.
6. CONSENT AGENDA
(a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS
. 1. PUBLIC LIBRARY BOARD MINUTES OF JUNE 25,2007
2. PIONEERLAND LIBRARY SYSTEM BOARD MINUTES OF JUNE 21, 2007
3. HUTCHINSON HOUSING & REDEVELOPMENT AUTHORITY BOARD MINUTES OF JUNE 19,
2007
4. BUILDING DEP AR TMENT MONTHL Y REPORT FOR JULY 2007
(b) RESOLUTIONS AND ORDINANCES
1. RESOLUTION NO. 13249 - RESOLUTION TEMPORARILY SUSPENDING PARKING
RESTRICTIONS ON JEFFERSON STREET DURING ARTS AND CRAFTS FESTIVAL
2. RESOLUTION NO. 13250 - RESOLUTION CALLING FOR A PUBLIC HEARING ON THE
GRANTING OF A BUSINESS SUBSIDY (CALL CENTER)
3. RESOLUTION NO. 13251 - RESOLUTION FOR PURCHASE (UNLEADED GASOLINE AND
BIODIESEL)
4. ORDINANCE NO. 07-0467 - AN ORDINANCE AMENDING SECTION 154.067 OF THE
ZONING ORDINANCE ADDING SCHOOLS TO THE CONDITIONALLY PERMITTED USES
IN THE I-I (LIGHT INDUSTRIAL DISTRICT) (SECOND READING AND ADOPTION)
. 5. ORDINANCE NO. 07-0469 - AN ORDINANCE ADOPTING THE 2007 EDITION OF THE
SCo.)
CITY COUNCIL MINUTES - AUGUST 14, 2007
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MINNESOTA STATE FIRE CODE (WAIVE FIRST READING AND SET SECOND READING AND
ADOPTION FOR AUGUST 28, 2007)
(c) CONSIDERATION FOR APPROVAL OF PARADE PERMIT FOR HUTCHINSON HIGH SCHOOL
STUDENT ADVISORY COUNCIL ON SEPTEMBER 28, 2007
(d) CONSIDERATION FOR APPROVAL OF PROJECT AWARD FOR THE 2007 PAVEMENT
REHABILITATION SEALCOA TING (LETTING NO.5, PROJECT NO. 07-05)
(e) CONSIDERATION FOR APPROVAL OF IMPROVEMENT PROJECT CHANGE ORDER NO.3,
LETTING NO. 3/PROJECT NO. 06-03 - DENVER AVENUE PROJECT
(t) REAPPOINTMENTS TO PRCE BOARD AND HRA BOARD
a. RUTH KIMBALL TO HRA BOARD TO AUGUST 2012
b. DEANE DIETEL TO PRCE BOARD TO AUGUST 2010
c. LORA MUILENBURG TO PRCE BOARD TO AUGUST 2010
d. BETH HEPOLA TO PRCE BOARD TO AUGUST 2010
Motion by Haugen, second by Arndt, to approve consent agenda with the exception ofItem 6(b)5. Motion
carried unanimously.
Item 6(b)5 had further discussion. Mayor Cook asked if the fire code could be adopted in such a fashion as
the building code was adopted, as a self-perpetuating ordinance. City Attorney Marc Sebora expressed that
he felt it would be a good idea to have it adopted as a self-perpetuating ordinance and that in the future in
should be done as so.
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Motion by Arndt, second by Haugen, to approve Item 6(b)5. Motion carried unanimously.
7. PUBLIC HEARINGS - 6:00 P.M.
(a) CONSIDERATION FOR APPROVAL OF ISSUING ON-SALE INTOXICATING & SUNDAY LIQUOR
LICENSE TO EL LORO II, INC., LOCATED AT 705 ATLANTA AVENUE SW
Motion by Arndt, second by Stotts, to close public hearing. Motion carried unanimously.
Motion by Stotts, second by Cook, to approve on-sale intoxicating and Sunday liquor license to El Loro II,
Inc., located at 705 Atlanta Avenue SW. Motion carried unanimously.
8. COMMUNICATIONS, REOUESTS AND PETITIONS
(a) DISCUSSION AND POSSIBLE RECONSIDERATION OF RECREATIONAL VEHICLE PUBLIC
HEARING
Mayor Steve Cook suggested the Council reconsider holding a public hearing on this issue as it seems that
the Council has already heard the comments they will need to hear, as well as the fact that they have received
information on how other communities regulate the issue. Council Member Stotts noted that the majority of
the phone calls he has received are residents stating that they wish for Hutchinson's ordinances to remain as
they are and not have more regulations pertaining to recreational vehicles. Council Member Haugen also
noted that the readers' poll on the Hutchinson Leader showed that the citizens wish for the City Council to
leave the issue alone.
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CITY COUNCIL MINUTES - AUGUST 14, 2007
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Motion by Cook, second by Stotts, to cancel the public hearing set for August 28, 2007, and leave the
ordinances as written. City Attorney Marc Sebora noted that one clarification that should be addressed is the
prohibition of parking in the roadway right-of-way as compared to solely the right-of-way as currently
written. Roll call vote was taken: Haugen - aye; Arndt - nay; Stotts - aye; Cook - aye. Motion carried 3 to
1.
(b) DISCUSSION OF COMMUNITY VISIONING PROCESS
Mayor Steve Cook suggested putting together a group that will study and address various projects for the
city, such as use of local sales tax, comprehensive plan, school district issues, etc. Mayor Cook noted that
the local extension office provides training and assistance with developing processes and groups such as
these. Mayor Cook suggested holding a Council session with a representative from the extension office in
October or November to determine whether or not it would be a good process to follow. The rest of the
Council concurred. Mayor Cook will bring back available dates of the extension representative.
9. UNFINISHED BUSINESS
10. NEW BUSINESS
(a) CONSIDERATION FOR APPROVAL OF 2007 HUTCHINSON JAYCEES HAUNTED HOUSE
Josh Gehlen, Hutchinson Jaycees Vice President, presented before the Council. Mr. Gehlen explained
that he, the City Administrator and Fire Chief had met a couple of weeks ago and agreed upon
conditions for the use of the training tower site for the Jaycees haunted house.
Motion by Stotts, second by Arndt, to approve 2007 Hutchinson Jaycees Haunted House using the fire
. training tower site. Motion carried unanimously.
(b) CONSIDERATION OF AMENDING SECTION 73.15 OF THE HUTCHINSON CITY CODE
RELATED TO REGULATIONS OF ALL-TERRAIN VEHICLES (WAIVE FIRST READING AND
SET SECOND READING AND ADOPTION OF ORDINANCE NO. 07-0471 FOR AUGUST 28,
2007)
City Attorney Marc Sebora noted that the proposal of this ordinance is to align it with the city's
snowmobile ordinance. The proposal is to allow ATV usage on city streets only to gain access to trails.
Chief Hatten noted that very few complaints regarding A TV usage have been received by the police
department, however this ordinance has been instigated by A TV operators that wish to have guidelines
in place.
Council Member Stotts noted that he would like Class 2 A TV s to be regulated differently than Class 1
A TV s. Chief Hatten suggested that a possible exemption could be placed into the ordinance for certain
types of vehicles. Council Member Stotts suggested adopting the ordinance for Class 1 ATVs however
conducting more research on the use of Class 2 A TV s. Council Member Stotts also noted concerns that
Class I A TVS are used for snow removal, therefore he would like to have an exemption for that as well.
Council Member Stotts suggested removing A(3) and allow an exemption for using Class 1 ATVs for
snow removal. Mayor Cook suggested tabling the ordinance until it can be completely revised.
. Brent Wiehr, 14594 State Hwy 7, presented before the Council. Mr. Wiehr spoke about state regulations
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CITY COUNCIL MINUTES - AUGUST 14, 2007
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of A TV s and about the difference between Class 1 and Class 2 A TV s.
Bob Wiehr, 495 Shady Ridge Road, presented before the Council. Mr. Wiehr also spoke about the
difference between A TV I and A TV 2 vehicles. Overall, A TV 2 vehicles are operated much more like a
motor vehicle than an off-road vehicle. A TV 2s are allowed on state highways, however not on
interstates nor in the ditches. He did not feel it was necessary to implement a new law regulating ATVs.
Rex Erickson, 590 Peterson Circle, presented before the Council. Mr. Erickson expressed that Class 2
A TV s are operated frequently in Phoenix, AZ, and there are little to no issues. He does not think
Hutchinson needs a new law.
Motion by Arndt, second by Haugen, to table this item to August 28, 2007. Motion carried
unanimously.
(c) CONSIDERATION FOR APPROVAL OF AUTHORIZATION TO ENTER INTO PURCHASE
AGREEMENT WITH CENEX CO-OP AND APPROVE PROJECT FINANCING
Miles Seppelt, EDA Director, presented before the Council. Mr. Seppelt explained that the EDA has been
working avith Cenex to acquire their property on 3rd A venue. The deal consists of the EDA purchasing four
lots on 3' Avenue and will include Cenex demolishing all of the structures on these lots by 12/31/07, Cenex
covering the match requirements for state clean-up programs, the EDA will gain 1.0 I acres for industrial
park right-of-way and a 1.14 acre "triangle" piece in the industrial park. For this, Cenex will be paid
$300,000 as well as approximately 1.8 acres ofthe easternmost Goebel lot in the industrial park, and a three-
year option, at no cost, on up to five acres of the Stritesky property at $10,000 par acre (industrial park
proJ?erty). The goals that will be accomplished with this transaction will include removal and clean-up of the
fertIlizer site near the Crow River, providing needed right-of-way to access the new industrial park and
providing land that can facilitate buffering of the scrap yard in the industrial park. The EDA is
recommending that the project be funded with $150,000 from the Do~town Revolving Loan Fund and
$150,000 from the city's development fund. After the fertilizer site on 3' Avenue is redeveloped and sold,
both the downtown revolving loan fund and the city's development fund will be reimbursed.
Council Member Arndt asked that staff confirm whether or not any railroad property runs through the piece
of land that is being acquired in the industrial park.
Motion by Stotts, second by Arndt, to approve authorization to enter into purchase agreement with Cenex
Co-op and approve project financing m the amount of $300,000, using $150,000 from the downtown
revolving loan fund and $150,000 from the city's development fund. Motion carried unanimously.
(d) CONSIDERATION FOR APPROVAL OF PROJECT FINANCING PLAN FOR CUSTOMER ELATION
CALL CENTER
Miles Seppelt, EDA Director, presented before the Council. Mr. Seppelt explained that an intake call center
is going to be located in Hutchinson and has chosen a location in the industrial park. The EDA is
recommending that the call center be financed with a lease-revenue bond. Lease payments from the
company will be set at a level sufficient to make the bond payments as they come due. The EDA' s request is
that the City "co-sign" the loan for the EDA. The details of the financing plan include: the EDA will own
the call center building, the EDA will rent the building to the city, the City will rent the building back to the
EDA, the EDA will then rent the building to the company and hopefully within 5-8 years, the company will
purchase the building. The protections in place for the City and the EDA include the lease with the call
center, the building itself as an asset, JOBZ protections, bond structure and the EDA's assets.
Council Member Arndt asked that staff contact Region 6E for additional revolving loan fund dollars.
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CITY COUNCIL MINUTES - AUGUST 14, 2007
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(e) UPDATE ON PROPOSED 2008 BUDGET
Motion by Haugen, second by Stotts, to approve project financing plan for Customer Elation Call Center.
Motion carried unanimously.
Ken Merrill, Finance Director, presented before the Council. Mr. Merrill distributed a draft of the 2008
budget and asked that the Council review and provide feedback as it relates to the format. Mr. Merrill also
inquired of the Council as to whether or not they wish to hold a public hearing related to the ,Proposed
budget. Last year, a similar hearing was held at the last meeting in August. Mr. Merrill remmded the
Council that the Truth in Taxation hearing must be set by September 15, 2007, as well as have a preliminary
tax levy set for 2008. The truth in taxation hearing will then be held in NovemberlDecember and the final
tax levy will be adopted following the truth in taxation hearing. Mr. Merrill explained that the proposed
2008 budget currently has expenses exceeding revenues by $270,000. In addition, the budget does include
fee increases and a proposed implementation of rental property registration/inspection program. General
discussion was held related to how the budget could be adjusted to make up the current deficit. Mayor Cook
also noted that he hopes to have the rental property registration/inspection program designed more for the
sake of safe properties as opposed to being a revenue generator. Mayor Cook also asked that city staff
contact the county in regard to an annual reimbursement from the county for dispatch services.
Motion by Stotts, second by Haugen, to set public hearing related to the proposed 2008 budget for August
28,2007, and set Council budget workshop for 3 :30 p.m. on August 28, 2007. Motion carried unanimously.
(t) CONSIDERATION FOR APPROVAL OF POLICY ON FUND BALANCE
Ken Merrill, Finance Director, presented before the Council. Mr. Merrill noted that the City's auditor, as
well as the State Auditor, has recommended that the City maintain a minimum fund balance approximately
40% of planned expenses.
Motion by Stotts, second by Haugen, to approve policy on fund balance maintaining 40% of planned
expenses. Motion carried unanimously.
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11. MISCELLANEOUS
(a) COMMUNICATIONS
Mayor Cook noted that a workshop was held regarding Creekside on July 31, 2007. The expectation from
that workshop was that the Council would provide direction to staff as to future operations of the site.
Mayor Cook recommended that staff continue with the Minneapolis contract. Approximately $115,000 in
cost savings is appreciated by residents just by having the compost facility in place and material not being
brought to the landfill. Scenarios #3 and #4 were requested to be used by Doug Johnson, compost site
coordinator. Mr. Johnson also suggested having a refuse rate increase by $1.50 per household per month.
Mayor Cook noted he was hesitant to institute any rate increases.
Motion by Stotts, second by Cook, to move forward with operations at Creekside using scenarios #3 and #4
as presented at the workshop. Motion carried unanimously.
Kent Exner - Mr. Exner provided an update to the Council on the Crow River Dam project. The dam will
be drawn down beginning September 4, 2007, with work beginning on the dam September 17, 2007.
Mayor Cook - Mayor Cook commented that he and Gary Plotz had attended the Coalition of Greater
Minnesota Cities conference last month. The Coalition is able to provide some services that the League of
Minnesota Cities is unable to. The Coalition could be used as a lobbyist on many issues. Mayor Cook also
suggested on looking at ways of funding projects without considering implementing a local sales tax.
12. CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS
. Motion by Arndt, second by Stotts, to approve claims, appropriations and contract payments. Motion carried
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CITY COUNCIL MINUTES - AUGUST 14, 2007
unanimously.
.. ADJOURN
Motion by Stotts, second by Arndt, to adjourn at 7:40 p.m. Motion carried unanimously.
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BID OPENING
PUBL. NO. 7608
SAW LOGS
August 13,2007, at 12:30 p.m.
Present:
Kent Exner, City Engineer
Melissa Starke, Recorder
The Bid Opening was called to order at 12:30 p.m. by Kent Exner. The reading of the
Advertisement for Bids was waived and the following bids were opened and read aloud:
Leon Madson
17898 Kale Ave.
Hutchinson, MN 55350
Base Bid: $161.00
Robert Anderson
1545 Adams St. S.E.
Hutchinson, MN 55350
Base Bid: $187.50 (revised bid) 8(13/07
Robert Anderson
1545 Adams St. S.E.
Hutchinson, MN 55350
Base Bid: $135.00 submitted 8/10/07
Farley Gruning
27976 County Rd. 45
Bingham Lake, MN 56118
Base Bid: $252.00
Closed: 12:35 p.m.
ATTEST:
Steven W. Cook, Mayor
Gary D. Plotz, City Administrator
6(10')
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+HUTCHINSON AIRPORT COMMISSION
June 21, 2007
5:30 p,m.
Airport Arri vallDeparture 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; Daryl Luthens,
tenant; Julie Neubarth, tenant; Todd Walters, tenant; Tim Miller, Air Methods/Life Linl"
Meeting called to order at 5:34 p.m. There was a quorum of members present.
1. Approve Minutes of Mav 17 meetin2
Motion made by Brill, second by McGraw to approve minutes. Unanimous approval.
2. Review Updated Han2ar Assi2nments
Review latest map (wI updates). There were updates since the last meeting. Since the last meeting, Ed
Klima, M'Cloud Aviation vacated Hangar 3-8. Using the priority list, the hangar was assigned to Fuzzy
Flyer (Karl Heisel). Karl Heisel vacated Hangar 2-5, moving to Hangar 3-8. Using the priority list, Hangar
2-5 was offered to Julie Neubarth. Julie Neubarth vacated Hangar 1-12, moving to Hangar 2-5.
Review latest priority list. Commissioner Freeman indicated that M'Cloud Aviation (Ed Klima) 07-01-86
should be removed, He also noted that Jeffrey Lux 05-01-05 should be removed. Staff will remove these
names as they both indicated they would vacate their hangars.
Currently there are six open hangars available.
3. Operational Issues
2007 Airport Improvements - Airport Layout Plan. Commissioners asked Olson to invite Lyle Kratzke,
TKDA, to the July 19,2007 Airport Commission meetipg to discuss the ALP. Of particular interest is the
likelihood that a modest runway extension or displaced threshold could be added.
4. Other Discussionsl New Business
a. HAM radio club activities scheduled for this weekend. This is an exercise using HAM radios to establish
communications during an emergency situation. The HAM radio club will be selling up their equipment
for a period of24 hours on Saturday June 23 and Sunday June 24. They have made contact with other
airport tenants to let them know about their exercise. If there are any problems, the contact will be John
Olson at 583-8145.
b. Water Carnival / Flv-in Debriefinf!.. Commissioners thanked the CAP, Hutchinson Aviation, Life Link 1II
and others that participated in or had their operations affected by the pancake breakfast and pork chop
dinner. There were reports that the event was successful, even though aircraft counts were down from last
year's, due to windy conditions.
c. Giencoe Airoort, Olson updated Commissioners on the resolution for support ofGlencoe Municipal
Airport's request to be included in the NPIAS. Gaining that status would allow Glencoe to access federal
funding through their AlP program.
Airport Commission
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June 21, 2007
Page 2
d. Ref!ional Airvort. Commissioners also discussed the possibility of a regional airport. Most Commissioners
believed that if the Highway 15 corridor is improved, that would allow the airport in Hutchinson to expand
to the point where this airport could serve as a regional. Commissioners acknowledged the other
transportation assets in the area, such as the Highway 15 corridor from Fairmont to SI. Cloud (190 to 194),
as well as the developing 4-lane east-west route, Highway 212. With a bypass around Hutchinson for
Highway 15, the Hutchinson Airport could be easily expanded and be used for a regional airport.
Commissioners felt this made sense, compared with other areas in the county. The Hutchinson airport lays
in close proximity to the industrial and population center of the county, has better potential access to
utilities, and it seems more likely that airport land could be developed to offset some potential costs of
expansion.
e. Budtlet. Olson reported the City was likely to experience significant revenue decreases. The City has lost
around $200,000 of Local Government Aid, another approximately $200,000 of engineering revenues on
top of a budget that was already over $200,000 behind the parameters set by the City Council. This puts
2008's budget on par with the budget from 2003, when it was necessary to cut approximately 14 positions.
Commissioners reviewed the budget, identifying potential increases in revenue for hangar rentals. The
revenue increases would likely be modest, as there was already a significant increase in 2007.
Commissioners looked at the top 3 expenses, which were, in descending order, utilities.
vehicles/equipment, and personnel. Personnel costs are about as low as they can be, considering the
amount of area required to be maintained. Vehicle/equipment costs could potentially be slightly lower for
fuel and maintenance, assuming that the level of service is reduced drastically. The primary uses for
utilities are for airfield lighting and heating of various buildings. One potential cost saving measure,
provided there could be grant money secured, perhaps as part of the Utilities Commission energy
conservation program, would be installation of LED lights. Another potential cost saving measure would
be introduction of alternative fuel heating in the buildings (e.g., com stove, wood, etc.). Any of these
measures, however, would require initial funding.
f. Fuel Svstem. A discussion was held regarding the condition of the A vgas hose. The hose has deteriorated
significantly and is worn through the protective outer layer in several spots. This condition is exacerbated
by exposure to weather and sun. For safety reasons, the Commissioners had asked staff to look for options.
The cost of the hose is expected to be approximately $1,500, but that would not take care of the exposure
issue, so it was recommended the hose be housed on a reel, up off the ground.
A motion was made by Freeman, second by Brill to purchase a replacement hose and hose reel for the
Avgas tank for $4,084 from Westmor Industries, LLC. Unanimous approval.
g. Miscellaneous.
i. Janet from Life Link III requested to be on the mailing list for airport information. She would plan to
represent Life Link III at Airport Commission meetings.
ii. Diesel for the mowers needs to be filled.
iii. Staff was directed to put "No Parking" signs/pavement markings on the apron by the main entrance to
the Arrival/Departure building, and along the roadways to aprons, and in front of the CAP building.
iv. When the Avgas reel and hose are installed, Westmor should be directed to slow the rewind on the Jet A
hose. The reel is moving to quickly and could be a safety hazard if someone were to catch their leg on
the hose or dispenser during rewinding operations.
v. Staff was asked to review a potential request for a leasehold improvement in Hangar 3-8
vi. Staff was asked to remove approximately 3 buckets of salt from Hangar 2-5.
At 6:38, a motion to adjourn was made by Freeman, second by Brill. Unanimous approval.
NEXT MEETING: July 19,2007 at 5:30 p.m.
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+HUTCHINSON AIRPORT COMMISSION
July 19,2007
5:30 p.m.
Airport Arrival/Departure Building
Minutes
Members present:
Mayor Steve Cook, Dave Skaar, Chuck Brill, Doug McGraw, Dick Freeman, Joel
Schwarze
Members absent:
none
Others Present:
John Olson, City of Hutchinson; Tom Parker, Hutchinson Aviation; Lyle Kratzke and
John Peterson, TKDA.
Meeting called to order at 5:30 p.m. There was a quorum of members present.
1. Review T -hanl!ar Punch list Items
Lyle Kratzke, TKDA listed items that Midland Bi-Fold Doors had corrected, with the only issues remaining
being a few areas of pavement that needs to be patched. TKDA will be contacting Midland Bi-Fold Doors
with the three areas of pavement that need to be repaired.
Regarding raising the bi-fold doors, Kratzke reported there is little adjustment left in the doors, due to the
grade of the apron, therefore it will be unlikely the doors could be raised by the inch or so that was talked
about in prior meetings. The pedestrian doors and locks were corrected, and touch-up painting was done to
the doors.
2. ALP Discussion
Kratzke and Peterson went over the preliminary ALP that has been generated to date. They infonned the
Commission that new wind rose infonnation will be included in the fmal ALP.
The Commission will seek input from Life Link III regarding the appropriate location for their operations,
including a helipad. Life Link/Air Methods staff will be infonned of the August meeting.
Commissioners will also review location of private GA hangars, private commercial hangars, and a
potential snow removal equipment building and include those locations in the new ALP.
Commissioners will review the potential location and/or combination of an agricultural spray containment
area and wash pad.
Land currently available at the airport will be reviewed as to its suitability for potential improvements,
beyond agricultural use.
Commissioners requested that fencing be removed from the ALP and be added only upon receiving
direction from TSA or Homeland Security.
Kratzke infonned the Commission that FAA had hired consultants to begin the process of putting together
a GPS approach to the airport. This work is expected to be done in the near future.
The future of aircraft will not likely affect the potential design of the airport, but TKDA will be in contact
with FAA regarding the possibility of displaced threshold or other method of lengthening the runway
without potential zoning conflicts.
Based on the condition of hangar # I, TKDA did not advise enclosing the hangar.
Airport Commission
Minutes
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July 19, 2007
Page 2
Lyle and John distributed the narrative report to Olson, who will be reviewing the document and be in
contact with TKDA regarding any potential changes.
3.
Capital Improvement Plan & FAA Fundine
Kratzke explained the current CIP, as proposed. In 2007, the ALP will be updated. There are no scheduled
projects for 2008 and 2009. In 20 I 0, runway and taxiway improvements are scheduled, mainly consisting
of maintaining existing structure to extend the life of the runway and taxiway. In 20 II, aT-hangar is
proposed. In 2012, there are no planned projects.
Proposed FAA funding is one of the main reasons the CIP has changed. This year, the FAA will be
changing its program. The current program expires on September 30, 2007. The new bill will likely
reduce the GA entitlement for Hutchinson to $100,000 per year, down from $150,000, based on between 10
and 50 aircraft being based here. The debate about the proposal continues, and it is too early to predict
what comprehensive changes will be made. No details ofthe program can be anticipated until fmal work is
done on the proposal by the federal legislature, which has historically taken place in late faU or early
winter.
4. Miscellaneous.
a. Olson was informed that the AlC unit in the CAP building was not functional; staff will investigate and
report in Augnst, if it cannot be fixed beforehand.
b. A question was raised regarding the terms of Commission members. Olson will report on terms of all
members at the August meeting.
At 7:00, a motion to adjourn was made. Unanimous approval.
NEXT MEETING:
August 16, 2007 at S :30 p.m.
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MINUTES
Parks, Recreation & Community Education Advisory Board
June 4, 2007
Members present were: Deane Dietel, Beth Hepola, Mike Cannon, Lora Muilenburg, Bill Arndt
and Keith Kamrath. Also present were Dolf Moon, Jeremy Jordan and Karen McKay.
The meeting was called to order at 5:20 pm.
A motion was made by Beth Hepola and seconded by Deane Dietel to approve the minutes dated
April 2, 2007. The board unanimously agreed.
OLD BUSINESS
HalfPennv Sales Tax - The final meeting is scheduled for June 4th. There have been eight
meetings in the past four months. The committee will determine if the sales tax is a viable way to
fund city projects. If recommended, the City Council will unanimously decide which projects
would be funded. There may be legislation coming to eliminate additional sales tax to fund
projects.
Disc Golf - Many people are using the disc golf course and South Park is a good location. Shane
Kruse spearheaded the project and raised a large portion of the money. Park Elementary had six
classes out in the park.
. Mav Registration - Early summer program registration went well. Dolf thanked the Board
members for helping out.
NEW BUSINESS
Summer Proiects
. Rolling Meadows East is located east of Montana Street. A $23,000 playground unit will be
installed in June with nearly $15,000 raised by MOPS, (mothers ofpre-schoolers). The
playground will include several features designed for handicapped accessibility. The purchase
request will be presented at the next City Council meeting, June Ith.
. Driftrider Park is located on five acres of land along Otter Lake. A shelter is planned
overlooking the lake, it will be constructed with the help of Driftrider volunteers. Pre-
engineered boulders with a natural look are planned for the play structure. The cost for the
structure is estimated at $14,000.
. Rotary Park - The shelter will get a serving counter and electricity installed some time this
summer. Rotarians will be planting trees this fall.
. Dam - The City of Hutchinson has $1.2 million available for the project. The first set of rock
will begin 100 feet from the current dam and continue downstream. 600 loads of rock from
farm fields will be needed to complete the dam. Work on the darn will begin in August.
. HarringtonlMerrill House - The house is almost all enclosed, the west end will be completed by
the end of the year. Lumber from the area is being used for the project. Construction is
historically correct. The project is in the third year of the 10 year process and is currently ahead
of schedule.
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MINUTES
PRCE Advisory Board
June 4, 2007
Page Two
. Firemen's Park - The walkway be will finished and the cupola painted. Running water, a stone
arched bridge and water fall will be completed in the park.
. Hwy. 7 - The highway is closed from School Road to Shady Ridge Road now, the intersection
will be closed Monday, June 11th. The work on the sewer system is the campground and
Oddfellows Park is complete. Construction on the underpass will begin this summer.
Landscape materials will be planted in 2008, city staff will be mixing compost from Creekside
into the topsoil.
. Veterans Park Sign - Hutch Manufacturing is finishing a 36' sign for Veterans Memorial
Ballfield to be placed over the scoreboard.
Julv Meeting - There won't be a regular meeting the first Monday of July with it so close to the
Fourth of July holiday. The Board is invited to tour the park system and see the construction
projects.
BOARD MEMBER ITEMS
Outdoor Ice - Lora Muilenburg asked Dolfwhat was needed to get outdoor ice in the parks going
again. There has been outdoor ice at the Park Elementary rink, however the past seven winters have
been very mild and warm. The city has had volunteers do some flooding at the outdoor rinks, it is a
time consuming process that requires a certain amount of technique. The rink at Northwoods Park
was discontinued due to lack of skaters. John McRaith, Recreation Services Coordinator has
organized outdoor broomballleagues in the past for a group of individuals that work at H.T.I.
Luce Line Trail- There is no change in the status of the possible paving of the Luce Line Trail.
There are approximately 700 names on a list of support for paving the trail and approximately 400
against.
Lion's Park - Keith Kamrath asked if the welcome sign, play equipment and shelter would be
reconstructed in Lion's Park. Dolftold the board that the situation will be evaluated when the
highway construction was complete.
ADJOURNMENT
The meeting was adjourned at 6:15 pm by a motion made by Mike Cannon, seconded by Deane
Dietel. The board unanimously agreed.
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Hutchinson Housing & Redevelopment Authority
Regular Board Meeting Tuesday, July 17,2007,7:00 AM
Minutes
I. CALL TO ORDER: Chairman Casey Stotts called the meeting to order. Members Present: La V onne
Hansen, Ruth Kimbal and Joel Kraft. Staff Present: Jean Ward and Judy Flemming.
2. MINUTES OF THE HRA BOARD MEETING ON JUNE 19,2007
Joel Kraft moved to approve the Minutes as written. La V onne Hansen seconded and the motion carried
unanimously.
3. FINANCIAL REPORTS
a. Joel Kraft moved to approve the Financials Reports. Ruth Kimball seconded and the motion carried
unanimously.
b. LaVonne Hansen moved to approve the 2006 HRA Audit Report. Ruth Kimball seconded and the
motion carried unanimously.
.
4. PARK TOWERS
a. Jean Ward reviewed with the Board the Vacant Unit Turn Around Report.
b. Jean Ward updated the Board on the progress of the Cingular Cell Tower. Construction is expected
to start the beginning of August.
c. Jean Ward gave the Board an update on the replacement of the boiler controls.
d. Jean Ward reviewed with the Board the Resident Handbook updates. Ruth Kimball moved to
approve the revised Resident Handbook. La V onne Hansen seconded and the motion carried
unanimously.
e. Jean Ward informed the Board that the HUD resident satisfaction survey is postponed until August
2007.
5. FRANKLIN GROVE EXPANDED REHAB PROJECT UPDATE
Joel Kraft requested that a name is also given when the loans are presented to the Board for approval.
Ruth Kimball moved to approve EFG Meece Loan #8682, Schuette Loan #8683 and Koeppen Loan
#8684, contingent to the Loan Review Committee's Approval. LaVonne Hansen seconded and the
motion carried unanimously.
6. UPDATE ON THE SCHOOL CONSTRUCTION HOUSE
a. Jean Ward reviewed with the Board the final report on the sale of the school construction house
located at 1150 Prairie View Drive.
b. Judy Flemming reviewed with the Board the Bids for the 2007/2008 School Construction House.
Joel Kraft moved to approve the bids ofUBC with the vinyl siding option, Mikolichek Plumbing &
Heating with the programmable digital thermostat and low flow shower head options, Lite Electric,
and Juul Contracting. Ruth Kimball seconded and the motion carried unanimously.
7. UPDATE ON HIGHWAY 7 CORRIDOR STUDY
Rebecca Bowers, the Planning and Zoning Director, updated the Board on the Highway 7 corridor
study.
. 8. HOUSING SITES FOR DOWNTOWN REDEVELOPMENT
Rebecca Bowers and Jean Ward reviewed with the Board some different downtown redevelopment
housing sites.
July 17,2007 Minutes
Page] of2
loCo- )~
9.
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HHPOP/CASA UPDA IE
a. Jean Ward told the Board that a Super RFP Application for affordability gap for 4 homes in Rolling.
Meadows East was submitted July 11,2007 for CRV funds and 3 homes for GMHF furniing.
b. Judy Flemming updated the Board on the 1 st closed loan from the 2006 CASA Workforce Initiative
for purchase of an existing home.
c. Judy Flemming updated the Board on Rolling Meadows East Loan #8827 that Closed 6/2912007.
d. La V onne Hansen moved approve the Karg and Burnison HRA Entry Cost Assistance Loans for
existing homes contingent to the loan review committees approval. Ruth Kimball seconded and the
motion carried unanimously.
] O. REVIEW OF HRA CITY CENTER BUDGET
Ruth Kimball moved to approve the HRA City Center Budget. Joel Kraft seconded and the motion
carried unanimously.
11. ADJOURNMENT
There being no other business, Chairman Casey Stotts declared the meeting adjourned.
Recorded by Jean Ward, HRA Executive Director
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' rBecky Felli ~.8ecretary/Treasurer
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July] 7, 2007 Minutes
Page 2 of2
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Hutchinson Housing & Redevelopment Authority
Annual Board Meeting - August 15,2006
Minutes
1. CALL TO ORDER: SecretarylTreasurer Becky Felling called the meeting to order.
Members Present: Thor Skeie, and Joel Kraft. Staff Present: Jean Ward, and Judy
Flemming.
2. MINUTES OF ANNUAL HRA BOARD MEETING ON AUGUST 16,2005
Thor Skeie moved to approve the Minutes of Annual HRA Board Meeting on August
16,2005. Joel Kraft seconded and the motion carried unanimously.
3. ELECTION OF OFFICERS
Thor Skeie moved to nominate Casey Stotts as Chairman of the Board; Joel Kraft as
Vice Chairman and Becky Felling as Secretary/Treasurer and Joel Kraft for the Loan
Review Committee and to keep the other position open until the other Board
Members are selected. Joel Kraft seconded and the motion carried unanimously.
4. FINAL REPORT: FRANKLIN GROVE SCDP REHAB PROJECT
Jean Ward and Judy Flemming gave a presentation to the Board on the Franklin
. Grove neighborhood rehab project.
5. REVIEW OF 2007 HRA PLANS/OBJECTIVES
Jean reviewed the 2007 HRA Plans/Objectives with the Board.
6. ADJOURNMENT
Joel Kraft moved to adjourn and Thor Skeie seconded the motion. There being no
other business, Secretary/Treasurer Becky Felling declared the meeting adjourned.
Recorded by Jean Ward, HRA Executive Director
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Becky Felling(" Secretarytfreasurer
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MINUTES
HUTCHINSON PLANNING COMMISSION
Tuesday, July 17, 2007
Hutchinson City Council Chambers
1.
CALL TO ORDER 5:30 P.M.
The meeting was called to order by Chairman Lynn Otteson at 5:30 p.m. with
the following members present: Chris Kovacic, Christie Rock, John Lofdahi,
Jim Haugen, Mike Flaata, Farid Currimbhoy and Chairman Otteson. Absent:
None Also present: Rebecca Bowers, Planning Director, Kent Exner, City
Engineer, Marc Sebora, City Attorney and Bonnie Baumetz, Planning
Coordinator
2. PLEDGE OF ALLEGIANCE
3. CONSENT AGENDA
a) Consideration of Minutes dated July 2, 2007
Mr. Lofdahl moved to approve the consent agenda as submitted.
Seconded by Mr. Currimbhoy, the consent agenda was approved
unanimously.
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4.
PUBLIC HEARINGS
a) PRELIMINARY AND FINAL PLAT (ONE LOT) JENSEN SECOND
ADDITION AND VACATION OF DRAINAGE AND UTILITY EASEMENT
Chairman Otteson opened the hearing at 5:35 p.m. with the reading of
publication #7599 as published in the Hutchinson Leader on July 5, 2007.
Ms. Bowers commented on the request and explained the history of the
properties, lot arrangements and location of the plat. She commented on
the shoreland property regulations. She explained a new home has been
approved to begin construction on the existing lot which was platted in
2006, subject to not exceed the 25% coverage maximum allowed in the
shoreland district. She commented on the 25% iot coverage requirement
for both the new and old lots. Staff requested a survey for the existing
Jensen home lot, however it has not yet been provided. There are
options if the old lot does not meet the requirement, such as reducing the
amount of coverage or removing area from the plat to add to the existing
home site. The new lot would meet requirements for lot area and width.
She commented on the staff conditions as follows:
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1. The plat must comply with the requirements of the R-2 zoning
district, subdivision requirements, and the shoreland district
requirements.
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Minutes
Planning Commission -July 17, 2007
Page 2
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2. Prior to the City signing the final plat, the applicant shall provide a
survey to demonstrate that the 25% maximum is not exceeded on
the existing Jensen home site. If the property exceeds the 25%
impervious coverage, the applicant will need to either remove
hardcover or revise the plat to allocate additional property to the
westerly site, subject to meeting the requirements of the zoning
ordinance.
3. Relocation of utility services is required prior to vacation of
easements. The relocation and any fees will be at property
owner's expense.
4. An easement of 20 feet on each side of the sanitary line to the
north shall be provided to the City prior to the City signing the final
plat for recording.
She explained that the vacation of easements is no longer be necessary
for construction of the new home and the applicant may withdraw that
portion of the application. Services would need to be relocated before
the easements could be vacated.
Discussion followed on the driveway easements with the property to the
west for the drives that cross the subject property.
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Mr. Jensen explained the lot configuration and what was purchased by
the Jensen's. He commented on the history of the property to the north
and the process to the platting. He commented on the options he would
have. He stated he does not need to vacate the easement and will
withdraw the request for vacation of easements. He stated he will provide
an easement to the city for the sanitary line to the north. He explained he
will amend the plat to include a 10 foot strip north to the lake which will
remain with the original/ot.
Ms. Bowers explained the complexity of the property history and the
changes and commented on the changes which would require the original
lot to maintain the 25% coverage requirement. She commented on past
correspondence in the file. She stated the new plat should comply with all
regulations.
Discussion followed on the original plat being a nonconforming lot.
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Mr. Jensen stated that the plat would conform to the requirements. There
was discussion on the coverage of the lots. Jeff Rauch, surveyor,
explained the location of the 10 foot strip. Discussion continued on the
existing lot coverage and changing the plat. Atty. Sebora stated the
percentages must not be exceeded, on both lots, in the end. There was
futher discussion on the need for the existing lot to meet the lot coverage
standards. Mr. Jensen stated if the 10 foot strip is placed back on the
existing lot the lot coverage does not have to be met. Discussion
followed. Chairman Otteson stated this is an opportunity to make both
lots conforming. Mr. Jensen stated there are many nonconforming lots on
the river in the city.
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Minutes
Planning Commission - July 17, 2007
Page 3
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Mr. Flaata made a motion to close the hearing. Seconded by Mr. lofdahl
the hearing closed at 6:08 p.m. Mr. Flaata made a motion to recommend
approval of the request removing recommendation #3 and adding, "the
existing structure pass as a nonconforming iot and the plat should be
revised to include the 10 foot strip to the north with the existing lot".
Seconded by Mr. Haugen, the motion carried unanimously. Chairman
Otteson stated this item will be placed on the City Council consent
agenda at their meeting held July 24, 2007, in the Council Chambers at
5:30 p.m.
b) AMEND SECTION 154.067 OF THE ZONING ORDINANCE ADDING
SCHOOLS TO THE CONDITIONAllY PERMITTED USES IN THE
1-1 (LIGHT INDUSTRIAL) DISTRICT
Chairman Otteson opened the hearing at 6:09 p.rn. with the reading of
publication #7599 as published in the Hutchinson leader on July 5, 2007.
Ms. Rock abstained from discussion and voting.
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Ms. Bowers commented on the request and explained the change in the
text proposed by the charter school. She explained the request should
include all schools. She reminded the Commissioners to look at the 1-1
district as a whole. She noted, if approved, the individual site will be
discussed at the conditional use permit public hearing. Chairman Otteson
reminded the audience the Commissioners will not be discussing a
particular site at this time.
Ms. Bowers commented on the existing ordinance and permitted uses
and conditionally permitted uses. She explained the difference between
a permitted use and conditional use. Planning Commission should
consider the consistency with the comprehensive plan. She stated that
the applicant considers the charter school learning style to benefit from
uses within industrial districts. She pointed out the potential impacts in
the packet as follows:
. Consistency with Comprehensive Plan
. Intent of 1-1 (Light Industrial) zoning district
. Characteristics of industrial uses, such as noise, truck traffic,
appearance, safety issues, etc.
. Conflicts between industrial truck traffic with buses and vehicles
dropping off(picking up students
. Noise, smell, and potential environmental impacts of industrial
uses on outdoor play areas
. Expansion of existing industrial uses in the future
. Future development of vacant industrial property and inability to
restrict permitted uses
. Potential for conflict and complaints from school and parents
regarding industrial uses and traffic surrounding the school.
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Ms. Bowers explained the Commissioners should consider future impacts
and complaints. She commented on the other cities surveyed and the
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Minutes
Planning Commission -July 17, 2007
Page 4
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many different responses. Discussion followed on the changes in
schools. She explained the existing ordinance allows K-12 schools in
most residential and commercial districts with a conditional use permit.
Trade and Vocational schools are allowed in the industrial district with as
permitted use.
There was discussion on the trend to allow non-traditional schools in light
industrial or business park districts in other cities. Ms. Bowers expialned
the Commissioners should consider future use and expansions of
surrounding properties. Discussion followed on the conditionally allowed
uses of adult oriented uses and tattoo parlors in the industrial districts.
Tim Ulrich, 14568 155'h St., representing a group of investors,
commented on the appropriate area for this type of facility to be
constructed. There is a proposed 15 yr. lease of the building to the
school.
Dave Conrad, 1110 Lewis Ave, representing the New Century School and
Montessori New Discoveries School, stated this is an opportunity for a
home for the school. He explained New Century has been in an industrial
area leased from HTI for 5 years. He stated the charter schools are
financially sound and enrollment is strong in Hutchinson. He commented
there are ind icators of future viability.
.
Discussion followed on the neighboring uses. Mr. Conrad stated the
same questions have been asked by the school. He explained the
concerns with safety near the elevator would not be not much different
than HTI. He stated the school takes safety seriously. There are plans
in place to deal with potential hazards. He commented on the potential
benefits of expanding for high school students. He stated elementary
students will be separated from the high school students. The school
focuses on the specific needs of the age groups. Mr. Conrad stated
buffering will aid in addressing safety. The type of existing industry in the
area does not concern the school. He explained the lease will have
options to be re-evaluated. They are looking at the present and future of
the school. The current leases are for one year.
There was discussion on property availability in the community for the
school. Luann Hoffman, parent, New Discoveries, stated this is an
opportunity to combine the elementary and high school which is an
attraction for her. Jack Yates, 20404 205th Crt., representing HTI,
commented on the lease with the school. He stated it has worked well
with the school in HTI. There have been no issues from the industrial
standpoint. He explained there are plans that the school must follow in
an emergency. Plan, prepare, train and be ready in case of emergency.
Another benefit is for the parents that work at the industry with children in
the school.
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Mr. Currimbhoy made a motion to close the hearing. Seconded by Mr.
Lofdahl. Discussion followed on the request. Ms. Bowers commented on
that schools are currently allowed as conditional uses in most residential
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Minutes
Planning Commission - July 17, 2007
Page 5
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and commercial districts. She stated that the Commission should state
their findings in their recommendation to Council and a resolution would
be drafted accordingly. The hearing closed at 6:45 p.m. Discussion
followed on allowing churches and day care facilities in the 1-1. Ms.
Bowers cautioned on expansion of the request at this time and reiterated
that uses should be consistent with the purpose and goals of the
industrial district. Mr. Flaata made a motion to recommend approval of
the request to add "schools" as a conditional use to the J-1 district with the
conditions as follows:
1. The amendment would be consistent with the intent of the
Comprehensive Plan as allowing schools as a conditional use
in the 1-1 district would aid in training students and would be
complementary to industrial uses.
2. The change in the ordinance to add schools in 1-1 is necessary
to modernize the ordinance to reflect the changing times and
nature of education.
Seconded by Mr. Haugen. The motion carried with a roll call vote Mr.
Currimbhoy, Chairman Otteson, Mr. Haugen and Mr. Flaata voting aye.
Mr. Kovacic and Mr. Lofdahl voting nay. Ms. Rock abstained. Ms. Bowers
stated this item will be placed on the City Council regular agenda at their
meeting held July 24,2007, in the Council Chambers at 5:30 p.m.
Mr. Ulrich stated he did include the District 423 in the discussions.
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c) CONDITIONAL USE PERMIT TO ALLOW CONTRACTING BUSINESS
IN THE C5 DISTRICT LOCATED AT 261 - 3RD AVE. NW.
Chairman Otteson opened the hearing at 6:53 p.m. with the reading of
publication #7599 as published in the Hutchinson Leader on July 5,2007.
Ms. Bowers explained the need for a conditional use permit in the C5
district. She stated any use change requires a conditional use permit.
She commented on the location and stated there will be no exterior
building changes. They will remodel the interior for a construction
business. The site has been cleaned up and is now vacant. She
explained the site is within the Hwy 7 corridor study and in the moratorium
area. The proposed use meets requirements. Staff would recommend
approval with the following recommendations:
1.
The proposed use would be in an existing building and
would comply with the standards of the C-5 district.
Outside storage of materials is not permitted. All materials
must be contained within the building. Parking of
company vehicles on the site is allowed.
The parking area shall be paved within 6 months of
approval. Construction of the parking area shall comply
with the requirements of the Zoning Ordinance, including
parking stall and drive aisle dimensions.
Sign permits are required prior to installation of any
signage.
2.
3.
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4.
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Minutes
Planning Commission -July 17, 2007
Page 6
5. No encroachment into the State right-of-way is allowed.
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Discussion followed allowing licensed company vehicles parked
outside including trailers and trucks. Ms. Bowers stated outdoor storage is
materials, etc.
Mr. Haugen made a motion to close the hearing. Seconded by Mr.
Lofdahl, the hearing closed at 6:59 p.m. Mr. Lofdahl made a motion to
recommend approval of the request with staff recommendations.
Seconded by Mr. Currimbhoy. the motion carried unanimously. Chairman
Otteson stated this item will be placed on the City Council consent
agenda at their meeting held July 24, 2007, in the Council Chambers at
5:30 p.m.
5. NEW BUSINESS
a) SITE PLAN REVIEW FOR O'REILLY AUTO PARTS STORE TO BE
LOCATED AT 1500 HWY 15 SOUTH
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Ms. Bowers explained the location and the lot of record. She commented
on the C4 zoning. She stated they provided a clean site plan that meets
the required setback and parking requirements. Revisions recommended
by staff include removing the easterly access near Highway 15, which is
specified in the City Engineer's memorandum. Discussion followed on
the proposed and future access in and out of the site. Staff
recommended approval with following conditions and fees:
1. The proposed building and site improvements would comply with
the standards of the C-4 district and the Zoning Ordinance, subject
to the conditions stated.
2. Final plans shall be revised according to the City Engineer memo
dated July 10, 2007. Plans must be approved by the City Engineer
prior to construction. Approval of the City Engineer is required prior
to any excavation, grading, or construction on site.
3. Sign permits are required prior to installation of the signage.
4. Park dedication and trail fee in the amount of $6,000 will be due at
the time of building permit. The City will construct the trail along the
easterly property line
5. SACfWAC fee in the amount of $7,375 (2.5 units x $2,950) will be
due at the time of building permit.
6. The City Forester recommends revising the landscape plan to
diversify the tree plantings. Landscape plan must be reviewed and
approved by the City Forester.
7. Exterior lighting must be shielded and shall not cause glare for
adjacent properties.
.
Discussion followed on the continuation of the trail along the east side of
the property as the sites develop in the area. The Commission
discussed the loading areas. Staff stated that the loading areas are
adequate.
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Minutes
Planning Commission - July 17, 2007
Page 7
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Mark Wold, representative for O'Reilly, stated they would agree with
removing the easterly access but the westerly access cannot be cut off
with a median in the future. He stated this store will work for the area.
He commented on the present location being tight for parking.
Ms. Rock made a motion to recommend approval of the resolution with
staff recommendations. Seconded by Mr. Lofdahl, Mr. Exner commented
on the removal of the east access. He stated the City will not place a
median at the westerly access to prohibit traffic. There is an easement
for accessing the southerly properties in the future. The motion carried
unanimously. Ms. Bowers stated this item will be placed on the City
Council consent agenda at their meeting held July 24, 2007, in the
Council Chambers at 5:30 p.m.
b) LOT SPLIT SUBMITTED BY KEN COTE TO SPLIT A SHORELAND
PARCEL INTO TWO LOTS
.
Ms. Bowers commented on the proposed lot split, which is located within
the 100 year floodplain and is subject to the shoreland district
requirements and flood plain requirements. She reported the DNR
Hydrologist recommendation was to deny the proposed construction in
the 100 year flood plain. She commented on the city flood plain buyout
project that was funding largely by DNR funds and was used to remove
structures from the flood plain. She commented the applicant has
discussed alternative building methods to be used to elevate the home
above the regulatory flood plain elevation. Staff stated the DNR
recommends denial due to the fact that the property is not suitable in it's
natural state for building without extraordinary measures. Staff compiled
conditions prepared in the event the commissioners would approve the
request.
Ms. Bowers explained the road was not platted as right of way. The City
has been maintaining the road. The road should be deeded to the City or
platted. Discussion followed on the construction proposed for building
methods out of the flood plain.
Mr. Cote, property owner, explained his intent to retire on this property.
He addressed the DNR concerns. He stated he will get engineered
designs to minimize the impact of the structure. The existing lot will meet
the requirements of the City. Mr. Cote explained the proposed design of
the structure will meet all City requirements. He addressed the elevation
and with suitable construction, the building would be elevated 3' above
the 100 year flood plain. He stated he will hire an engineer when he
receives approval of the lot split.
.
Concerns were raised by some Commissioners allowing a lot split with an
existing garage and no principle building. Another concern was with the
site line changing with raising the new home. Mr. Cote intends to build a
retirement type home on the new lot. He stated the existing home would
have to be considerably remodeled to make it iivable. There was
discussion of the concerns with splitting the lot.
l.cL~)5
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Minutes
Planning Commission - July 17, 2007
Page 8
Mr. Cote asked if the council would consider remodeling the existing
home and remodeling the existing garage to a home. Ms. Bowers would
not recommend this due to the proximity to the shoreline and high water
level. Discussion followed regarding the recommendation by the DNR.
There was further discussion on the existing garage if the lot is split. Mr.
Cote addressed the concern by stating he would put money in a fund for
removal if allowed.
Atty. Sebora commented that the ordinance does not allow an accessory
structure without a primary structure. Ms. Bowers stated a
recommendation could be to remove the garage before construction of
the home.
Mr. Cote stated he will employ an architect and engineer to meet
requirements. He stated the existing neighbors have been informed. He
will provide everything necessary to conform. He would like to begin
construction in Spring 2008 and move into the house in the Fall of 2008.
Ms. Bowers explained the DNR does understand a structure can be
constructed if eievated above the 100 year flood plain, however it is also
a policy issue to be decided by the City. Discussion followed on the age
and condition of the shed. Mr. Cote stated the shed is approximately 25
years old.
There was further discussion regarding the pOSSible conditions if allowing
the lot split with an accessory building on the new lot.
Mr. Cote explained he would get soil borings and engineered drawings.
He was asked by the Commissioners to provide renderings or photos of
the type and square footage of the building proposed for staff review.
Mr. Lofdahi made a motion to table to next month. Seconded by Mr.
Currimbhoy, the motion carried unanimously.
6. OLD BUSINESS
7. COMMUNICATION FROM STAFF
8. ADJOURNMENT
There being no further business the meeting adjourned at 7:55 p.m.
l.t(~)S
. . 2oo7u
.JULY
i REVENUE REPORT - GENERAL
1"'----------
-[i1~~E~' .
!f'ERMITS AND FEES. '
,INTERGOVER-NMENTAL REVENUE
iC___HARI3ESFOR SERVICES
i1I11EEl& FORFEITS .-
,I NTEREST u ... u_
. REIMBURSEMENTS
iIRANElFEREl_u_ _. _, ..___
'SURCHARGES - BLDGPERMITS
rTOTAl- T
-----.1
1--
2007;
JULY ,
,EXPENSE REPORT - GENERAL
: ()()1MAYOR & CITY COUNCIL
l()02CITY ADMINis-TRATOR -
OO~ ELECTIONS ___ . _._
. 004 FINANCE DEPARTMENT
, 005 MOTOR VEHICLE
1-
006 ASSESSING
i 007 LEGAL
, OOBPLANNING
: 009 INFORMATI6NElERVICES_
&.110 POLICE DEPARTMENT -
.115 EtvlER(3ENC'y'MANAGEMENT
116 SAFETY COMM ITTEE
'120 FIRE DEPARTMENT . .... _.
U_30_PROTECTIVE INSPECTIONS
. 150 ENGINEERING - -
1?2 STREETSaALLEYS
:1~o.CI"T'(HALL BUILDIN(3
: 201 PARK/RECREATION ADMINISTR
, 202 RECREATION
203 SENIOR CITIZE:NCENTER
2D4ClvIC-ARENAu_' . un_
205 PARK DEPARTME-NT
-206 R-ECREATloN BUILDING & pool'
'207 EVENTS CENTER ' -
208 EVERGREEN BUILDING
250 LI BRARY --
301 CEMETERY
, 310 DEBT SERVICE
320 AIRPORT . ._~
350 UNALLOCATED GENERALEXPE
,TOTAL
.
'cITYoFHUTCHINSON-FiNANCIACREPORT
2006 2007 2007 2007'
JULY JULY YEAR TO ADOPTED
YTD MONTH DATE ACTUAL BUDGET
1,753,055.89
_ 37,478.50.
232,076,01 :
_ 1,363,919,82_
751,917.39 '
---- --I
26,281.53 ,
_ (6,,407.51);
158,264.81
549,19862
1,361,03_
4,867,145.89
1,787,038.55 .
.3,404,94
58,211,05
(25.86)
13(),322.47
__ 5,082.93
801.18
35,521,11
. 269.362.39
2,44.0,51 _
u2,292.15927_
1,]87,038.55.
38,10308
179,99693
126,632A2
815.975.41 '
. 28)6568'
(10,640J2)i
152,431.68 ,
_ 561 ,510,99
. 2,506.46
3,681.820.38
3,800.665.00
48,400.00
.320,700.00 :
2,764,45100
1,690,312.00
68,000.00
70.000.00
290,116.00
1,673,100.00..
500.00
10,726.244.00
. CITY OF HUTCiiiNSONFiNANC:IALREPORT
2006,
JULY'
YTO
. _ 38,90411
164,401.56
.8,416.58 ._
228,741.42,1,
116.897,92
97,689.22
_ 86,91335
116,854.30
1.498.26493
__7,181,58
7,570.01 ,
177,470.98 '
115_,256.56 '
289,126.39
655,767.73
79.676.51
110,088.70
n. 130,28,0)9 '
50,82052 ..
182,497,34 .
43.5,45172,:_
69,310,02 '
130,862,.18 '
6,97332
79,11734,
77c86053
2,791.25
56,750.66
335,911.72 '
5,357,84852
200i!- 2007.
JULY: YEAR TO!
MONTWDATE ACTUAL,
2,729.16
.25.209.85
45,64526
16,852.44
- . 20,133.38-' -
.12,968501
19,088.55 I
. 207,D3858 I
1,0~~.40 j
4.542.60 .
32,454.46
15,683.47
33,879.69
_. 72,366.81
9,824.20. .
14,212.84
39,il18.44
8.632.93
19,781 47 '
_ 78.498,17,
'10,326.54 I
18,965,03 ..
728.76
2,931.39 ,
!lj56.09 .,.-
5,672.84 '
115,23050
842,69735
41,850.36
194,148.16
715.40
312,312.36
120,67040 .
106.129.47
96.074.46 '
. _140,362.75 :
1.594,876.75 ,
10,979.70,
13,659.07 ,
205,720.91 J
129.031.09 .
_.263,001.33
791.128.22 ,
72,568.02
116_,47466
153,35473
__ 48,154,41 ,_
170,252.40 '
_ 455,799,:>9
88,119.99
140,080.77 .
6,42020 !
88,333.32 .
76,303.05
48,196.46
350,787.51
5,835.505.34
2007
ADOPTED
BUDGET
60,198.00 ,
341.142.00
2,375.00
584,932.00 .
201,825.00
51,840.00 .
201,734.00
178,910.00
260,503.00 ,
2,919,593.00
19,000.00 .
20,375.00
434,510.00
267,359.00.
607,218.00
1,268,242.00 .
155.499.00 ,
202,557.00
207.970.00
59.397.00
299,265.00.
831,579.00 .
134,45000
234,41.0.00 I
16,000.00 '
175,634.00
142,760.00
25,000.00
103,017.00
718,950.00
10,726.244.00
2007 n -JULY
BALANCE PERCENTAGE
REMAINING USED
2,013,626.45
10,29692,
140,703.07
2,637,81858
874,33659
39,734,32
80,640.82
137,68432-
1,111,589.01
(2,006.46)
7.044,423.62
47.02%
78.73%
56.13%
4.58%
48.27% ,
41.57%
-15.20%
52.54%
33.56%
34.33%
2007 JULY
BALANCE PERCENTAGE
REMAiNING, -USED
18.347.64
146,993.84
1,659.60 '
272,619.64
81,154.60
_ 51,840.00
95.604,53 .
82,835.54 ,
120,140.25
1,324.716.25
8,020.30
6,715.93
228,789.09
138,327.91
344,216.67
477,11378
82.930.98
86.082.34
54,615.27
11,242.59
12i:(012.60C
375,779.61
46,33001_.
94,329.23 i
9,579.815 ..
87,300.68 :
66,45695 .
25,000.00
54.820.54
368.162.49
4,890,738.66
69.52%
56.91%
30.12%
53.39%
59.79%
0.00%
52.61%
53.70%
53.88%
54.63%
57.79%
67.04%
47.35%
48.26%
43.31%
62.38%
46.67%
57.50%
73.74%
81.07%
56.89%
54.81%
65.54%
59.76%
40.13%
_5_0.29% ,
53.45%
0.00%
46.78%
48.79%
54.40%
loClAJ La
2007
JULY
REVENUE REPORT - GENERAL
.A)(ES.........
, LICENSES
PERMITS AND FEES
------ --
INTERGOVERNMENTAL REVENUE
,CHARGES FOR SERVIC-ES
:FINES-&FORFEITS ..-..
INTEREST!
.REIMBURSEMENTS
TRANSFERS
,SURCHARGES - BLDG PERMITS
TOTAL
2007'
JULY
! EXPENSE REPORT - GENERAL
'SUMMARIZED
General Govt.
'Public Safety
: Streets & 'Alleys
;-Parks &. Recreation
Miscellaneous
TOTAL
.
.
,CITY OF HUTCHINSON I'INANClAD~EPORT
2006! 2007 - 2007 2007
ACTUAL' JULY YEAR TO ADOPTED
Year 10 Date, MONTH ,DATE ACTUAL BUDGET'
- -
1,753,055.89.
.37.478.50 .
232,076.01
1,363.919,82
751,917-39'
26,281,53.
(6,40751) i
158,264,61
549,198,62
1,361,03
4,867,145,89.,
2006
JULY
YTD
938,49495 .
1,805,744,06
944,894.12
1,276.053.01
392,662.38
5,357,848,52 '
1,787,038.55:
3.40494
58,211.05
-25,86
130,322.47
5,082,93
801,18
35,52111
269.362.39,
2.440.51_
2,292,159.27
1,787,038.55
38,103.08
179,996.93
126,632.42
815,975.41 .
28,265.68 ,
(10,640,82)
152,431.68,
561,510.99 ,
2,506.46 .
3,681,82038
2007: 2007
JULY, YEAR TO
MONTH' DATE ACTUAL
152,451.34
260,744,51.
106,246.50
202,351.66,
120,903.34
842,697.35,
1,084,831,38
1,954,267,52 ,
1,054,129,55 :
1,343,292,92 ,
398,983.97 '
5.835,505.34
3,800,66500
. 48.400,00
320,700.00
2,764,451,00
1,690.312,00 '
68,000,00
70,000.00
290,116.00
1,673,100.00
500.00
10,726,244.00
2007
ADOPTED
BUDGET
2,038,95800
3,660,837,00
1.875.460.00
2.304,0~2.00
846,967,00
10,726,244,00
2007
BALANCE PERCENTAGE
REMAINING USED
2,013.626.45 .
10,296.92 ,
140,703.07_~
2,637,818.58 '
. 874,336.59
39,734,32
80.640!l2 .
137,684,32 :
1.111,589.01'
(2,006.46)[
7,044.423.62 '
47.02%
7873%
56,13%
4.58%
48.27%
41.570/0
-15.20%
52,54%
33,56%
0,00%
34,33%
2007 JULY
BALANCE PERCENTAGE
REMAINING USED:
954,126,62
1,706,569.48 ,
821,33045
960,72.9.08 '
447,983.03 :
4,890,738.66 '
53,21%
53,38%
56.21 %
58.30%
47.11%
54.40%
LaC~)G2
CITY OF HUTCHINSON
CERTIFICATES OF DEPOSIT
. 23-Aug-07 July 31, 2007
Date Date
Interest Of Of
Institution Description Rate Purchase Maturity Amount
US BANK FHLB 4.10% 11/3/2004 11/19/2008 375,000.00
Smith Barney FHLMC med 4.00% 7/30/2004 7/27/2012 300,000.00
step up
Smith Barney FHLB C 4.50% 1/7/2004 7/30/2009 300,000.00
Smith Barney FHLB C 4.500% 4/28/2005 10/28/2008 750,000.00
Smith Barney FHLB C 5.010% 4/26/2005 4/26/2010 270,000.00
Smith Barney FHLM -C 5.500% 4/5/2007 4/5/2012 300,375.00
Smith Barney FHLM -C 5.550% 3/1(2006 3/1/2011 500,000.00
Wells Investmen FHLN 5.279% 03/22/06 01/29/07 500,000.00
Edward Jones FNMA 5.00% 10/12/2006 11/23/2007 500,000.00
Wachovia FHLB 5.00% 5/22/2003 6/12/2013 300,000.00
Wachovia FHLB 5.00% 6/12/2003 6/12/2013 300,000.00
.
Wachovia FHLB 5.000% 6/26/2003 06/26/13 400,000.00
Wachovia FHLB 4.000% 7/16/2003 7/16/2013 200,000.00
Wachovia FHLB step 5.375% 2/14/2007 8/14/2009 625,000.00
step up
Wachovia FHMA 5.350% 03/16/06 09/18109 200,000.00
5.350% 03/16/06 09/14/07
Wachovia FHLB = step UI 5.330% 10/26/06 10/26/09 300,000.00
Wachovia FHLB = step ul 6.000% 06/29/07 06/27/14 500,000.00
step up
First Minnesota 5.180% 02/20/07 03/13/08 400,000.00
First Minnesota 4.650% 11/21/06 11/21/07 750,000.00
---~~--------_._----------
$7,770,375.00
.
(QCOr.~r
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.
.
.
.
.
This ordinance adopts the ~ 2007 Minnesota State Fire Code and amendments for the
City of Hutchinson.
ORDINANCE NO. 07-0469
AN ORDINANCE OF THE CITY OF HUTCHINSON ADOPTING THE ~ 2007
EDITION OF THE MINNESOTA STATE FIRE CODE, REGULATING AND
GOVERNING THE SAFE GUARDING OF LIFE AND PROPERTY FROM FIRE
AND EXPLOSION HAZARDS ARISING FROM THE STORAGE, HANDLING
AND USE OF HAZARDOUS SUBSTANCES, MATERIALS AND DEVICES, AND
FROM CONDITIONS HAZARDOUS TO LIFE OR PROPERTY IN THE
OCCUPANCY FOR BUILDINGS AND PREMISES IN THE CITY OF
HUTCHINSON; PROVIDING FOR THE ISSUANCE OF PERMITS FOR
HAZARDOUS USES OR OPERATIONS;
THE COUNCIL OF THE CITY OF HUTCHINSON HEREBY ORDAINS:
Section 1. That a certain document, one copy of which has been marked as the official
copy and is on file at the City of Hutchinson-Fire Chiefs Office, beinll marked and
designated as the ;;WW 2007 Minnesota State Fire Code, including AppendIx Chapters B,
C, D, H, and I, is hereby adopted as the Fire Code for the City of Hutchinson, Minnesota,
for the purpose of prescribing regulations governing conditions hazardous to life and
property from fire or explosion, except such portions as are modified or amended by Section
7 of this ordinance. Every provision contained in this code, except as modified or amended
by this ordinance is hereby adopted and made a part of this ordinance as if fully set forth
herein. The Appendix referenced in this Section I are further identified as:
APPENDIX B - FIRE-FLOW REQUIREMENTS FOR BUILDINGS.
APPENDIX C - FIRE HYDRANT LOCATIONS AND DISTRIBUTION.
APPENDIX D - FIRE APP ARA TUS ACCESS ROADS. A Cul-de-sac shall have the
Minimum diameter of 120' were parking is provided.
APPENDIX H - OPEN FLAME AND FUEL STORAGE PROHIBITED ON
BALCONIES OR PAnOS
I. I Open Flame Prohibited. In any structure containing three or more dwelling
units, no person shall kindle, maintain, or cause any fire or open flame on any
balcony above ground level, or on any ground floor patio within 15 feet of the
structure.
1.2 Fuel Storage Prohibited. No person shall store or use any fuel, barbecue,
torch, or other similar heating or lighting chemical or device in the locations
designated in Section 1.1.
It(b'J \
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.
.
Exception: Listed electric or gas-fired barbecue grills that are permanently
mounted and wired or plumbed to the building's gas supply or electrical
system and that maintain a minimum clearance of 18 inches on all sides,
unless listed for lesser clearances, may be installed on balconies and patios
when approved by the fire chief.
APPENDIX I - SPECIAL LOCKING ARRANGEMENTS FOR GROUP I
OCCUPANCIES
State Adopted Amendment.
Section 1. That the following sections are hereby revised:
105.6 Required operational permits. Section 105.6 is amended to read "The code official
Is authorized to issue operational permits for the operations set forth in
Sectionsl05.6.I through 105.6.4.6. Operational Permits required by the Fire
Department":
105.6.15
105.6.17
105.6.28
Fireworks
Flammable and combustible liquids
LP Gas
105.6.31
is amended to read "An operational permit is required for the kindling or
Maintaining of an open fire or fire on any public street, alley, road, or
Other public or private ground" Instructions and stipulations of the permit
Shall be adhered to.
Item #3, To install, alter, remove, abandon or place temporarily out of
service or otherwise dispose of a flammable or combustible liquid tank.
LP gas
105.7.5
105.7.8
(See Minnesota State Fire Code Section 10 1.2.I,~ 2007 edition), as published by the
International Code Council, be and is hereby adopted as the code of the City of
Hutchinson for regulating and governing the safeguarding of life and property from fire
and explosion hazards arising from the storage, handling and use of hazardous
substances, material and devices, and from conditions hazardous to life or property in the
occupancy of buildings and premises in the City of Hutchinson and providing for the
issuance of permits for hazardous uses or operations; and each and all of the regulations,
provisions, conditions and terms of such Minnesota State Fire Code ~2007, ~
2006 edition, published by the International Code Council, on file in the office of the City
of Hutchinson are hereby referred to, adopted and made a part hereof as if fully set out in
this ordinance.
2
taCk,') \
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SECTION 2. That the following sections are hereby revised:
Section 101.1 Insert: City of Hutchinson Fire Department
Section 109.3 Insert: Violations penalties. Persons who shall violate a provision
Ofthis code or shall fail to comply with any of the
requirements thereof or who shall erect, install, alter, repair.
or do work in violation of the approved construction
documents or direction of the fire official, or of a permit or
certificate used under provisions of this code, shall be guilty
of a Misdemeanor, punishable by a fine of not more than
$1,000, or by imprisonment not exceeding 90 days, or both
such fine and imprisonment. Each day that a violation
continues after due notice has been serviced shall be deemed
a separate offense.
Section 111.4 (Failure to Comply) Insert: Any person who shall continue any
Work after having been served with a
stop work order, except such work as
that person is directed to perform to
remove a violation or unsafe condition,
shall be liable to a Misdemeanor
charge/fine of not less than $1,000
dollars or more than 90 days by
Imprisonment.
.
SECTION 3. That the limits referred to in certain sections of the ;WW 2007 Minnesota
State Fire Code are hereby established as follows: (limits in which open burning is
prohibited): City of Hutchinson
307.1 General. A person shall not kindle or maintain or authorize to be kindled or
Maintained any open burning unless conducted and approved in accordance with
This section.
307.2 Permit required. A permit shall be obtained from the fire official in accordance
With Section 105.6 prior to kindling a fire for recognized silvicultural or range or
Wildlife management practices, prevention or control of disease or pests,
Recreational permits, or special circumstances. Application for such approval shall
Only be presented by and permits issued to the owner of the land, or their
Designated agent, upon which the fire is to be kindled.
307.2.1 Authorization. Where required by state or local law or regulations, open
Burning shall only be permitted with prior approval from the state or local
Air and water quality management authority, provided that all conditions
Specified in the authorization are followed.
.
307.2.2 Is amended to read: Open burning that will be offensive or objectionable
Due to smoke or odor emissions when atmospheric conditions or local
3
(aCb) \
.
Circumstances make such fires hazardous shall be prohibited. The fire
official is authorized to order the extinguishment by the permit holder or
the fire department of open burning when it creates or adds to a hazardous
or objectionable situation. Open burning of debris piles, leaves, and yard
waste and burning in barrels is prohibited.
307.3
Location. The location for open burning shall not be less than 50 feet from any
structure, and provisions shall be made to prevent the fire from spreading to
within 50 feet of any structure.
Exceptions:
I. Fire in approved containers that are not less than 15 feet from a
structure.
2. The minimum required distance from a structure shall be 25 feet where
the pile size is 3 feet or less in a diameter of 2 feet or less in height.
307.3.2 Recreational fires. Recreational fires shall not be conducted within 25 feet
Of a structure or combustible material unless the fire is contained in an
Approved device or method, such as a fireplace, charcoal grill, etc. located
at least 15 feet from any buildings, fences or structures.
.
307.4 Attendance. Open burning or recreational fires shall be constantly attended until
the fire is extinguished. A minimum of one portable fire extinguisher
complying with Section 906 with a minimum 4-A rating or other approved
onsite fire extinguishing equipment, such as dirt, sand, water barrel, garden hose
or water truck, shall be available for immediate utilization.
307.5 Open flame-cooking devices. Charcoal burners and other open-flame cooking
devices shall not be operated on combustible balconies or within 15 feet of
combustible construction.
Exceptions:
1. One and two family dwellings.
307.5.1 Liquefied-petroleum-gas-fueled cooking devices. LP gas burners having
A LP gas container with a water capacity greater than 2.5 pounds LP gas
Capacity shall not be located on combustible balconies or within 15 feet
of
Combustible construction.
Exception:
I. One and two family dwellings.
.
4
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Chapter 314 - INDOOR DISPLAYS is amended to read:
COVERED MALLS
Section 314.5 Main Aisle Width: Main aisles shall be a minimum of 10 feet in width or
The minimum required means of egress width, whichever is greater, and
Shall be maintained clear from any obstructions.
Section 314.6 Cross Aisle Width. Cross aisles shall be a minimum of 15 feet in width or
The required means of egress width, whichever is greater, and shall be
Maintained clear from any obstructions.
Section 314.7 Fixtures. Fixtures shall not be located in main aisles or cross aisles.
Section 314.8 Sprinkler Obstructions. Roofs or coverings for kiosks, display booths,
Concession equipment or similar structures shall not exceed 4 feet in
Dimension unless the area beneath the roofs or coverings is protected by an
Approved automatic fire-extinguishing system.
EXHIBIT HALLS AND ASSEMBLY OCCUPANCIES
Section 314.9 Solid Fuel Burning Appliances. Use of solid fuel burning appliances for
Display purposes shall not be allowed in assembly occupancies other than
Cooking fuel as described in NFPA 101,2000 Edition, and Section
12.7.1.4.
Solid fuel burning appliances may be defined as any appliance that uses
Decomposition of cellulose material, hydrocarbon solids, animal fat or
Proteins to produce heat or leaves an ash residue. This would include plant
Products or materials, wood, coal, mesquite, etc.
Section 314.10 Compressed flammable gas cylinders and flammable or combustible
Liquids used for display purposes shall be prohibited within exhibit hall
and assembly occupancies.
Section 314. 11 Fireworks use, sales display or storage shall not be allowed in assembly
occupancies or within 100 feet of the structure or unless separated by an
Approved permanent partition such as a building wall.
Section 314.12 Overcrowding and admittance of persons beyond the approved capacity
ofa
Place of assembly are prohibited. The Fire Official or their designated
Agent, upon finding overcrowding conditions or obstructions in aisles,
Passageways, or other means of egress, or upon finding a condition which
Constitutes a serious menace to life, is authorized to cause the performance,
Presentation, spectacle or entertainment to be stopped until such condition
or
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Obstruction is corrected.
Section 314.13 Standby Personnel. When, in the opinion of the Fire Official or their
Designated agent, it is essential for public safety in a place of assembly or
Any other place where people congregate, due to the number of persons,
Or the nature of the performance, exhibition, display, contest, or activity,
The owner, agent or lessee shall employ one or more qualified
Persons, as required and approved, to be on duty at such place. Such
Individuals shall be subject to the Fire Officials orders at all times when
So employed and shall be in uniform and remain in duty during the times
Such places are open to the public, or when such activity is being
Conducted. Before each performance or the start of such activity, such
Individuals shall inspect the required fire appliances provided to see that
They are in proper place and in good working order, and shall keep
Diligent watch for fires during the time such place is open to the public or
Such activity is being conducted and take prompt measures for
Extinguishment of fires that may occur. Such individuals shall not be
Required or permitted, while on duty, to perform any other duties than
Those herein specified.
Section 503.4 Obstruction of fire apparatus access roads is amended to add:
Section 503.4 Parking of motor vehicles in, or otherwise obstructing fire lanes shall be
Prohibited at all times. Any vehicle so parked is the act of a registered
Owner as well as the act of the person actually parking the vehicle. For
Purposes of this section, registered owner is defined to include motor
Vehicle leasing agencies and corporate owners. It shall be a defense to any
Violator ifthe registered owner shows that on the date of the offense, title
Has been transferred to another. A violation of this section is a petty
Misdemeanor as defined by Minnesota Statute 609.02, Subdivision 4a, and
Shall be punished by a fine not to exceed $200.
Minnesota State Fire Code ;WW 2007 shall be amended to read:
Section 903.4.2 Alarms: An approved sprinkler flow alarm shall be provided on the
Exterior of the building in a location to be approved by the Fire
Department. An approved audible sprinkler flow alarm to alert the
Occupants shall be provided in the interior ofthe building in a normally
Occupied location.
Chapter 32 CRYOGENIC FLUIDS is amended to read:
Section 3204.3.1.1 (limits in which the storage of flammable cryogenic fluids in
Stationary containers are prohibited): City of Hutchinson. The storage
and use of flammable cryogenic fluids in stationary containers in any
. amount is prohibited within the corporate limits of the city without
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prior approval. Prior approval requires the submittal of a proposed
storage use and will require technical assistance as specified in section
Chapter 33 EXPLOSIVES AND FIREWORKS is amended to read:
Section 3304.1.1 The storage of explosives and blasting agents is prohibited within the
corporate limits of the city
Chapter 34 FLAMMABLE AND COMBUSTIBLE LIQUIDS is amended to read:
Section 3404.2.9.5.1 The storage of class I and class II liquids in above ground tanks
outside of buildings is prohibited within the corporate limits of the
City with exception ofthose areas zoned 1-2 industrial, agricultural
and also other remote areas with quantities as approved by the fire
Official.
Section 3406.2.4.4 (limits in which the storage of Class I and Class II liquids in
aboveground tanks are prohibited): City of Hutchinson. The storage
of class I and class II liquids in above ground tanks is prohibited
within the corporate limits of the city with exception of those areas
zoned 1-2 industrial, agricultural and other remote areas with
quantities as approved by the fire official.
Chapter 38 LIQUEFIED PETROLEUM GASES is amended to read:
Section 3804.2. (Limits in which the storage of liquefied petroleum gas is restricted for
the protection of heavily populated congested areas): City of Hutchinson.
The limits referred to in section 3804.2 storage of Liquid Petroleum gas
is prohibited within the corporate limits of the city with exception to
those areas zoned 1-1 & 1-2 Industrial, Agricultural and also Residential
locations and quantities as approved by the fire official.
SECTION 4. That Ordinance of City of Hutchinson entitled
Minnesota Uaiforffi State Fire Code Standards, +991 2003 Edition and all
other
Ordinances or parts of ordinances in conflict herewith are hereby repealed.
SECTION 5. That if any section, subsection, sentence, clause or phrase ofthis ordinance
is, for any reason, held to be unconstitutional, such decision shall not affect
the validity of the remaining portions of this ordinance. The City of
Hutchinson hereby declares that it would have passed this ordinance, and
each section, subsection, clause or phrase thereof, irrespective of the fact
that one or more sections, subsections, sentences, clauses and phrases are
declared unconstitutional.
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SECTION 6. That the City of Hutchinson-Administrator's Office is hereby ordered and
Directed to cause this ordinance to be published.
SECTION 7. That this ordinance and the rules, regulations, provisions, requirements,
orders and matters established and adopted hereby shall take effect and be
in full force and effect Marell 31, 2003 Julv 10. 2007 from and after the
date of its final
passage and adoption.
Adopted this
Minnesota.
day of
, 2007 by the City Council of Hutchinson,
Mayor -
Steve Cook
City Administrator- Gary D. Plotz
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RESOLUTION NO. 13258
CITY OF HUTCHINSON
.
RESOLUTION FOR PURCHASE
The Hutchinson City Council authorizes the purchase of the following:
ITEM COST PURPOSE DEPT. BUDGET VENDOR
Mercury plan & plant $17,000 Required for permit WWTP yes Donohue & Assoc.
water system re-design expiring in Nov 2007
.e following items were authorized due to an emergency need:
ITEM COST PURPOSE DEPT. BUDGET VENDOR
eotion Made By:
Seconded By:
Resolution submitted for Council action
Kenneth B. Merrill
by: Finance Director
Date Approved: August 28, 2007
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MCLEOD COUNTY
EMERGENCY MANAGEMENT
.
Division af Mcleod County Sheriff
Mcleod County law Enforcement Center
801 10th Street East
Glencoe, MN 55336
Kevin J. Mathews
Director
Business Phone: ,(320) 864-1339
FAX: (320) 864-5920
August 2, 2007
Gary Plotz, Administrator
111 Hassan Street SE
Hutchinson, MN 55350
Dear Mr. Plotz:
.
Enclosed you will find a resolution that was handed out at the Hazard Mitigation
kickoff meeting that was held in December 2006 in Glencoe. r have not received a signed
copy back from the City of Hutchinson. rfyou do not sign this resolution to participate in
McLeod County's hazard mitigation pIan, you will not be eligible to receive any money
from the hazard mitigation fund in the future. This money would be used to lessen
damages from happening in future disasters.
If you have any questions about this, please let me know. Thank you for your assistance!
/& /tVkV#
Kevin Mathews
McLeod County Emergency Management Director
801 10th Street East
Glencoe, MN 55336
(320) 864-1339 phone
(320) 864-5920 fax
kevin .mathews@co.mcleod.nm.us
.
McLeod County is an Equal Opportunity Employer
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Resolution No. 13257
RESOLUTION TO PARTICIPATE IN
MCLEOD COUNTY'S HAZARD MITIGATION PLAN
City/Township of
Hutchinson
, McLeod County, Minnesota.
WHEREAS, McLeod County is participating in a hazard mitigation planning process as established
under the Hazard Mitigation Act of 2000; and
WHEREAS, the Act establishes a framework for the development of a county hazard mitigation
plan; and
WHEREAS, the Act as a part of the pla:1l1ing process requires public involvement and local
coordination among neighboring local units of government and businesses; and
WHEREAS, the plan must include a risk assessrnent including past hazards, hazards that threaten
the county, maps of hazards, an estimate of structures at risk, estimate of potential dollar losses for
each hazard, a general description of land uses and development trends; and
WHEREAS, the plan must include a mitigation strategy including goals and objectives and an
action plan identifying specific mitigation projects and costs; and
WHEREAS, the plan must include a maintenance or implementation process including plan
updates, integration of plan into other planning documents and how the county will maintain public
participation and coordination; and
WHEREAS, the draft plan will be shared with Minnesota Planning for coordination of state agency
review and comment on the draft; and
WHEREAS, this ResoIution does not preclude the CitylTownship from preparing its own plan in
the future.
NOW THEREFORE BE IT RESOLVED, that the CitylTownship of Hutchinson
supports McLeod County's hazard mitigation planning effort, wishes to join McLeod County in
preparing the plan and recognizes that the plan applies within the CitylTownship.
Adopted this
(month), 2007.
(day) of
Signed:
Name, Title, Date Steven W. Cook, Mayor
Attest:
Name, Title, Date
Gary D. Plotz, City Administrator
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MEMORANDUM
DATE:
TO:
August 22, 2007 for the August 28, 2007 City Council meeting
Hutchinson City Council
FROM:
SUBJECT:
Rebecca Bowers. AICP, Planning Director
CONDITIONAL USE PERMIT, SITE PLAN, AND VACATION OF EASEMENTS
TO ALLOW A CHARTER SCHOOL IN THE 1-1 (LIGHT INDUSTRIAL) DISTRICT
AT 100011010 5TH AVE S.E.
Backaround:
The applicant is requesting a conditional use permit, site plan, and vacation of easements
to construct a charter school in the 1-1 District. An approximately 38,000 sq. ft. building is
proposed for the 5 acre site. The proposed use would be a school occupied by New
Century Charter School and New Discoveries Montessori Academy. The school would be
K-12 and would have approximately 300 - 350 students. A school could be allowed with
approval of a conditional use permit as Zoning Ordinance was recently amended to allow
schools as a conditional use in the 1-1 (Light Industrial) district. Additional information is
contained in the attached Planning Commission staff report.
. Revised plans and additional information was received between the writing of the staff
report and consideration by the Planning Commission, therefore an update is provided
below in the following section.
Plannina Commission Meetina:
The Planning Commission held a public hearing and considered the request at their August
21,2007. meeting. Staff stated that stormwater and drainage plans were recently provided
and have not been reviewed by the City Engineer. Revised plans were also provided after
the staff report was written for the site plan, building elevation, and floor plans. The revised
floor plan identifies a 2-foot larger building than shown on the site plan, which will need to
be revised to show the side yard and parking setbacks would still be met. Several
changes to the drive-aisles, parking and drop-off areas recommended at the one-stop shop
have been incorporated into the revised site plan, however will require additional review and
approval by the City Engineer.
The landscape plan has not been finalized as the school wants to work with the City
Forester to develop the plan as a learning exercise for students. The Commission
recommended the required landscaping and buffering be completed by November 2008.
.
There were several comments from the public in addition to representatives from the
Charter school and investors. Representatives of Hutchinson Coop expressed concerns
about their business next to a school, stating the nature of their business is noisy and dusty,
with heavy truck and farm traffic. He said that they would not be the best neighbor to a
school. Another Coop representative questioned how the school would affect the future
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City Council Memo
August 28, 2007
Charter School in 1-1
Page 2
development of the industrial park, particularly the Stritesky property to the south.
The applicants stated they understand the potential issues with operating in an industrial area
and that Hutchinson residents are used to rural businesses with the associated smells, dust,
noise, etc. They will try to be a reasonable neighbor with the industry near them and will work
with the Coop to identify the issues and develop plans to deal with challenges.
Traffic levels were also discussed in comparison to other areas with schools, such as School
Road. The applicants stated they would not encourage children to walk or bike to school
unless there was a dedicated safe route.
Recommendation:
,
The Planning Commission unanimously recommended approval of the conditional use permit,
site. plan, and vacation of easements, with the findings and conditions in the attached
resolution.
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RESOLUTION NO. 13255
RESOLUTION APPROVING A CONDITIONAL USE PERMIT, SITE PLAN AND V ACA TION
OF DRAINAGE AND UTILITY EASMENTS TO ALLOW A CHARTER SCHOOL FACILITY
IN THE 1-1 (LIGHT INDUSTRIAL) DISTRICT LOCATED AT 1000(1010 - 5TH AVENUE S.E.
Whereas, TRJR,LLC, applicants, have requested approval of a site plan, conditionaI use permit, and
vacation of easements to allow a charter school facility in the I-I District with the following legaI
description:
Legal Description: Lots 2 and 3, Block 2, Goebel's Addition
Whereas, the Planning Commission has held a public hearing on August 21, 2007, on the request and
considered the requirements of the Zoning Ordinance and the effects of the proposal on the health, safety,
and welfare of the occupants of the surrounding lands, existing and anticipated traffic conditions, and the
effect on values of properties in the surrounding area and consistency with the Comprehensive Plan, and
hereby recommends approval of the request.
The City Council has considered the recommendation and findings of the Planning Commission and
hereby does recommend approval of the site plan, conditional use permit, and vacation of easements
subject to the following findings and conditions:
1. The proposal would meet the standards for granting a conditional use permit and the
standards in the Zoning Ordinance, subject to the conditions stated.
2. The proposed building and site improvements must complywith the standards of the I-I
district and the Zoning Ordinance, subject to the conditions stated. No variances are
granted or implied.
3. Stormwater calculations and pIans must be submitted and approved by the City Engineer
prior to any construction on site.
4. A private easement will be required from the property to the west for the benefit of the
subject property and the EDA site to the east to allow a drainage swaIe or stormwater
pipe to be constructed to direct drainage to the regional pond. The applicant will be
responsible for preparing and obtaining the necessary easements.
5. City Engineer's approval of the final construction plans is required prior to any
excavation, grading, or construction on site.
6. Review and approval by the City Engineer and Planning Director of the final parking
arrangement and site circuIation is required prior to construction.
7. The applicant should be aware that unusual pedestrian crossings, reduced speed signs or
special turning lanes are not recommended due to the industriaI uses in the area and
truck traffic on 5th Avenue.
8. The two parcels must be tax combined at the County prior to approval of the building
permit for construction ofthe building.
9. Sign permits are required prior to installation of the signage.
10. SACIWAC fee in the amount of $47,200 (16 units x $2,950) will be due at the time of
building permit.
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Resolution #13255
Conditioual Use Permit, Site Plan, Vacation
Charter School-lOOO/IOlO - 5'h Ave SE
City Council- August 28, 2007
Page 2
11. Landscape plan must be reviewed and approved by the City Forester. Required
landscaping and buffer shall be completed by November, 2008.
12. Details on the fence construction and approval of a fence permit are required prior to
construction.
13. Exterior lighting must be shielded and shall not cause glare to adjacent properties.
Adopted by the City Council this 28th day of August, 2007.
ATTEST:
Gary D. Plotz
City Administrator
Steven W. Cook
Mayor
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DIRECTORS REPORT - P'LANNING DEPARTMENT
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To: Hutc'binson Planning Commiss,ion
From: :Brad E,mans, Dolf Mo:on, Dave Hunslad, MilesSeppelt, Shan Ghimire, Jean
Ward, Judy Flemming, John Webster, Joh.n Olson, Lenny Rutledge, Kyle
Dimler, Kent Exner, John Paulson, Mark Schnobricb) Marc Sebora, Gary
Plotz)' Ken Menill, Jim, 'Popp, Da,o Batt:en, Dick Nagy, Rebe,c)ca Bowers and
Bonnie Baumetz (pers,ons in attendanc.e at Planning Staff Meeting (in bold)
Date: August 9, 2007, for oI~DguSt 2.1, 2007', Planning Commiss,ion Meeting
Applicati,on: Conditional Use Pe.rmlt, Site Plan Revie,v and Vacation of Easements to
allow a charter school in the 1-1 (Light Industrial) District located at
1000/1010 - 5th Ave S.E.
Applicant: TRJR, LLC, c/o Jim Fabey
CONDITIONAL USE P~ERMIT, SITE P.LAN RE"VIEW ,AND VACATION OF EASEMENTS
Brief Description:
The applicant is requesting a conditional use permit, site plan, and vacation of easements to
construct a charter school in the- I-I District. An approximately 38,000 sq. ft. building is
proposed for the 5 acre site.A. vacation of easements along the property line between lots 2 and
3 and parcel consolidation is also Tequired~
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Conditional Use Permit, Site plan and Vaeation of easements
Charter Sehool- 1000/1010 5th Ave. S.E.
Planning Commission - 8/21/07
Page 2
Existing Zoning:
Property Location:
Lot Size:
Existing Land Use:
Adjacent Land Use
And Zoning:
Comprehensive
Land Use Plan:
Zoning History:
Applicable
Regulations:
Transportation:
Analysis:
GENERAL INFORMATION
1-1 (Light Industrial)
100011010 - 5th Ave S.E.
5 acres
Vacant
Industrial uses to the north, east, and west of the site. The property to
the south is currently residential, however is outside city limits and
guided for future industrial use in the Comprehensive Plan.
Industrial
The subject property is part of Goebel's Addition, which was a 6 lot plat
approved in 1998. The City approved a zoning ordinance amendment on
August 14, 2007, to allow schooIs in the I-I district with a conditional
use permit.
Sections 154.067, 154.170, 154.169 of Hutchinson City Code and City
Charter
5th Avenue S.E.
Approval of a site plan, conditional use permit, and vacation of easements is required to
construct the proposed 38,000-square foot building. The proposed use would be a school
occupied by New Century Charter School and New Discoveries Montessori Academy. The
school would be K-12 and would have approximately 300 students. A school would be allowed
with approval of a conditional use permit as Zoning Ordinance was recently amended to allow
schools as a conditionaI use in the I-I (Light Industrial) district.
A one stop shop was held on August 7, 2007, at which revised plans were provided by the
applicant. Staff discussed the following site issues: drainage and stormwater, utilities, traffic,
parking, unloading areas, entrance drives, site circulation, handicapped parking, landscaping,
building layout, and play ground area. Staffreview and comments on these items are included
in the in the relevant sections of this report.
Conditional Use Permit
In reviewing an application for a CUP, the Commission should consider ifthe proposal meets the
standards for a CUP. A CUP shall be granted only if evidence is presented to establish the
following:
toCL-) \
Conditional Use Permit, Site plan and Vacation of easements
Cbarter Scbool-lOOOIlOlO Sib Ave. S.E.
Planning Commission - 8/21107
Page 3
.
(a)
The proposed building or use at the particular location requested is necessary or
desirable to provide a service or a facility which is in the interest of the public
convenience and will contribute to the general welfare of the neighborhood or
community;
The proposed building or use will not have a substantial or undue adverse effect upon
adjacent property, the character of the neighborhood, traffic conditions, utility
facilities and other matters affecting the public health, safety and general welfare; and
The proposed buiIding or use will be designed, arranged and operated so as to permit
the development and use of neighboring property in accordance with the applicable
district regulations.
(b)
(c)
The property proposed for the conditional use should be reviewed to consider any site issues and
appropriate conditions incIuded with the CUP based upon the characteristics of the site. Two of
the key factors for the Commission to consider are 1) how the school may be impacted by nearby
industrial uses, as well as 2) how the school could potentially impact development of adjacent
industrial property, particularly the EDA site to the east of the site. Conditions may be placed
upon a conditional use permit in order to alleviate potential concerns created by the proposed use
or to reduce potential impacts of surrounding properties (such as requiring screening).
Site Plan
.
Building:
The proposed building would be an approximately 38,000-square foot one-story metal buiIding.
Draft buiIding floor plans and elevations are attached, however the applicant has not yet finalized
the plans or location of windows. The building height would be approximately 22 feet.
Setbacks:
The proposed site plan would meet the required building setbacks. The proposed building
setbacks and requirements for the I-I district are identified below.
Required Proposed
Structure Setback Structure Setback
Street Right of Way (front) 25 feet 120 feet (north)
Interior Lot Line 20 feet 45 feet (east)
(sides and rear) 200 feet (south)
82 feet (west)
.
Traffic, Access and Circulation:
The proposed site plan identifies two access drives into the site with a one-way bus drop off at
the front entrance. Staff recommends changing the front parking lot to one way diagonal
parking and signage at both entrances to reduce traffic conflicts. Also recommended is moving
the barrier-free parking away from the bus drop off area into the front parking lot. This would
allow space for a drop off area at the front of the building for vehicles. The rear parking lot is
identified as one-way, however reversing the direction should be considered to increase visibility
around the building.
lP Cu) \
Conditional Use Permit, Site plan and Vacation of easements
Charter School - 1000/1 01 0 5tb Ave. S.E.
Planning Commission - 8/21/07
Page 4
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Staff recommends that the westerly drive be moved west to align with the center of Michigan
Avenue to reduce traffic conflicts at that intersection. At the one-stop shop, staff also stated
that the applicant should be aware that this is an industrial area and that requests for unusual
pedestrian crossings, reduced speed signs or special turning lanes will not be recommended due
to the industrial uses in the area and truck traffic on 5th A venue. A concrete walkway is shown
on the plans to connect the school's main entrance to the existing sidewalk along 5th Avenue.
The applicant will be working on the recommended revisions after discussing their operations.
A revised plan may be presented at the Commission meeting.
Parking and Drive-Aisles:
The site plan identifies two parking areas, one at the front for visitors and one at the back for
high school students and overflow parking. Persons parking in the rear lot would be required to
walk to the front entrance to enter the building. The proposed parking area and drive aisles meet
the required 20-foot setback to the right of way and 10' to interior lot lines.
For school uses, the Zoning Ordinance requires 1.6 parking spaces for each elementary through
junior high classroom and 4.5 spaces for each senior high classroom. Based upon the allocation
of 13 classrooms for elementary and junior high and 8 classrooms for senior high, approximately
57 parking spaces are required. On the site plan received August 7th, 92 spaces are proposed,
which would exceed requirements. However, as noted above, due to the need to revise the
parking arrangement for improved traffic circulation as noted above, the number of parking
spaces is likely to be reduced.
.
Stormwater Management and Engineering Review:
At the time of writing the report, no stormwater management or drainage plans were avaiIabIe
for review. In order to move stormwater from the site to the west into the regional stormwater
pond, either a stormwater pipe or drainage swale must be constructed at the south end of the
property. This will also require a private easement to be obtained from the property to the west
for the benefit of the subject property and coordination/easement dedication with the EDA site to
the east to account for the routing of their stormwater to the regional pond. The applicant will
be responsible for preparing and obtaining the necessary easements.
As noted at the one-stop shop meeting, stormwater calculations must be provided to the City
Engineer accounting for the regional pond drainage Curve Number of 85 (approximate
maximum impervious of 65%) for this site.
Final approval will be subject to City Engineer's review and approval.
Landscaping:
The applicants have submitted a draft Iandscape plan, however are requesting to work with the
City Forester in using the landscaping project as a learning exercise for the students. A single
line of trees is proposed along the easterly property line to provide some buffering between the
EDA site to the east, however there is limited landscaping room available in this area under the
proposed layout.
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Conditional Use Permit, Site plan and Vacation of easements
Charter School- 1000/1010 S'b Ave. S.E.
Planning Commission - 8/21/07
Page 5
. The species and sizes oflandscaping will need to be further refined and a deadline established
for completing the landscaping. Staffhas added a condition to the draft resolution that the
landscape plan shall be reviewed and approved by the City Forester.
Playground and Play Areas:
The elementary playground area is proposed at the northwest comer of the site in front of the
building. The applicant has indicated that the playground would be fenced and provide a
connection to the building for safe movement of children to the play area. Details of the fencing
have not been provided, however will be required as a condition of the fence pennit. An open
play yard to the south of building is also shown for older children.
Signage and Lighting:
A freestanding sign is identified along 5th Avenue, however no details on the signage have been
provided. All signage must comply with sign reguIations in the Zoning Ordinance will be
reviewed after a sign permit is submitted.
Vacation of Easements:
A vacation of easements for the drainage and utility easements along the property line between
lots 2 and 3 is required for construction of the building over the property line. The easements
were placed along the Iot lines with the plat for Goebel's Addition and are standard drainage and
utility easements surrounding both lots. The two parceIs must be tax combined at the County as
construction over Iot lines is not permitted by the Zoning Ordinance or Building Code. As the
properties will be combined, there is no longer a purpose for the easements.
.
Recommendations:
Stafft~ically provides a recommendation from the Planning Staff meeting, which was held on
July 30t. However, as the application was substantially incomplete for that meeting, staff was
not able to make a recommendation. Staff discussed general issues with the conditionaI use
related to potential impacts on existing industries and future industriaI development. The
following general site issues were also identified: the need to align entrance drives with
Michigan Avenue to reduce traffic conflicts, assuring safe unloading and parking circulation, the
need for landscaping and screening, and the location and fencing of the playground.
Most of the site plan-related issues have been either addressed or discussed with the applicant at
the one-stop shop on August 7th However, storm water and drainage plans have not been
provided at the time of writing the report.
Staff has developed the following recommended conditions to address items that are incompIete
or require additional review or revisions:
.
1. The proposed building and site improvements must comply with the standards of the I-I
district and the Zoning Ordinance, subject to the conditions stated. No variances are
granted or implied.
2. Stormwater calculations and plans must be submitted and approved by the City Engineer
prior to any construction on site.
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Conditional Use Permit, Site plan and Vacation of easements
Charter School-lOOO/lOlO 5th Ave. S.E.
Planning Commission - 8/21/07
Page 6
3. A private easement will be required from the property to the west for the benefit of the
subject property and the EDA site to the east to allow a drainage swale or stormwater
pipe to be constructed to direct drainage to the regional pond. The applicant will be
responsible for preparing and obtaining the necessary easements.
4. City Engineer's approval of the final construction plans is required prior to. any
excavation, grading, or construction on site.
5. Review and approval by the City Engineer and Planning Director of the fmal parking
arrangement and site circulation is required prior to construction.
6. The applicant should be aware that unusual pedestrian crossings, reduced speed signs or
special turning lanes are not recommended due to the industriaI uses in the area and
truck traffic on 5th Avenue.
7. The two parcels must be tax combined at the County prior to approval of the building
permit for construction of the buiIding.
8. Sign permits are required prior to installation of the signage.
9. SACfWAC fee in the amount of $47,200 (16 units x $2,950) will be due at the time of
building permit.
10. Landscape plan must be reviewed and approved by the City Forester. Landscaping shall
be completed by 2008.
11. Details on the fence construction and approvaI of a fence permit are required prior to
construction.
12. Exterior lighting must be shielded and shall not cause glare to adjacent properties.
The Planning Commission should hold a public hearing on the proposal and provide a
recommendation to the City Council. Staff has provided a draft ordinance for vacation of
easements along with a draft resoIution for approval of the site plan, conditional use permit, and
vacation of easements with the above noted conditions.
Should the Commission find that the proposal does not meet the standards for granting a
conditional use permit, the Commission should state the reasons the proposal does not meeting
the conditional use permit standards. Staff will draft a resolution with findings to the Council
accordingly.
Cc: Jim Fahey, 446 Main SI. S.
Tim Ulrich, 14568 - 155th SI.
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ADDITION
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SWANSON'S SUBDIVISION IN
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LEGEND
CCIHOUR [U:VAlllJol
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PRllPO$[lI TILE
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SNEEr INDEX,
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COMolCEcr TO E~ISTTN~ ~~NHO!.E
DI~ECTIONAI.- BORe UNDER E~lSTlNG "AVE"'ENT
9ETOI1(STARTOrCONSTRUCTlDN,TH(OW'NERSf)f"ANYUTlLITlES
INVOLVED Mun BE NOlInED, THE EXCAV,,"TIF IS RESPCJlSIULE
nm GIVI~ flitS NOTlC( BY eM-uNt; 'GOPI-ER STATE ONE C"lL'
liT [-900-252-1166 AT LEAST ~9 HOURS PRIlR TO ANY EXCAVI\T10N.
TI-E OVNER IS RESPDNSTBl..E FOR (]BTAINTNG LAND RIGHTS AND
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THE APPLICAlII..C (;[AM AND CIH Of HUTCHINSm<l C[lNSTRUCTIOH '''''TERIAL
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LEGEND
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UTILITY PLAN
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BACKGROUND
Reasons for the request for a conditional use permit:
The existing charter schools serving Hutchinson, Minnesota are both in temporary
locations at this time. A group has come up with a long range solution to house the
two schools in a new aprox 40,000 sq ft building proposed for the 1000 block of 5th
Ave SE,
Charter school buildings are funded in Minnesota through lease aid from tbe State
of Minnesota based on a formula using the student population of the schools,
Charter schools may not bond or use bond issues to fund buildings, Charter
schools may not own real estate.
Most charter schools are owned by private parties or entities such as non-profits,
school districts, universities, etc,
Charter school facilities must meet strict E (education) building codes, local zoning
ordinances and safety criteria before lease aid is made available by the Minnesota
Department of education,
Charter schools are entrepreneurial in nature and share a common interest with the
business community, It is common for charter schools to use community experts
from area businesses and manufacturers to help educate the students on certain
subjects,
Many charter schools, including New Century Charter School in Hutchinson are
"project based" which requires project space and community experts assist and
direct the projects. This makes for a unique relationship with area businesses and
manufacturers.
The need for future project space could be met by renting space from the proposed
business incubator project being considered by the Hutchinson EDA,
From an investment standpoint, it is not economically sound to construct a
commercial building for charter school use in a non- industrial or non-commercial
area. Use of the building years in the future could be a hardship for the owners and
blight for a residential area,
Many Charter schools are similar in nature to trade schools.
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.
.
.
City of Hutchinson
Forestry Department
1400 Adams St SE
Hutchinson, MN 55350
Phone (320) 234-4459 Fax (320) 234-6971
August 15, 2007
Charter School Landscape Plan
5THAVESE
Hutchinson, MN
I have reviewed the landscape plan for the Charter School located at 5th Ave SE and I will be
discussing the specie selection and also the location of the plant materials on the site with them
as they progress with the project.
I aIso will be working with their education department and John Olson, Hutchinson Public
Works Manager, on a vegetated drainage system on the south and west side of their property.
find that their selection of tree species is acceptable.
I highIy recommend they plan for an extensive buffer between their property and the industrial
park to the east. We will work with them on this aspect oftheir project and assist where we can.
Mark Schnobrich
City Forester
1400 Adams St SE
Hutchinson, MN 55350
320-234-4459
mschnobrich@ci.hutchinson.mn.us
laCY) \
.
.
.
RESOLUTION NO, 13255
RESOLUTION APPROVING A CONDITIONAL USE PERMIT, SITE PLAN AND VACATION
OF DRAINAGE AND UTILITY EASMENTS TO ALLOW A CHARTER SCHOOL FACILITY
IN THE 1-1 (LIGHT INDUSTRIAL) DISTRICT LOCATED AT 100011010 - 5TH AVENUE S.E.
Whereas, TRJR,LLC, applicants, have requested approval of a site plan, conditionaI use permit, and
vacation of easements to allow a charter school facility in the 1-1 District with the following legal
description:
Legal Description: Lots 2 and 3, Block 2, Goebel's Addition
Whereas, the Planning Commission has held a public hearing on August 21, 2007, on the request and
considered the requirements of the Zoning Ordinance and the effects of the proposal on the health, safety,
and welfare of the occupants of the surrounding lands, existing and anticipated traffic conditions, and the
effect on values of properties in the surrounding area and consistency with the Comprehensive Plan, and
hereby recommends approval of the request.
The City Council has considered the recommendation and findings of the Planning Commission and
hereby does recommend approval of the site plan, conditional use permit, and vacation of easements
subject to the following findings and conditions:
1. The proposal would meet the standards for granting a conditional use permit and the
standards in the Zoning Ordinance, subject to the conditions stated.
2. The proposed building and site improvements must comply with the standards of the I-I
district and the Zoning Ordinance, subject to the conditions stated. No variances are
granted or implied.
3. Stormwater calculations and plans must be submitted and approved by the City Engineer
prior to any construction on site.
4. A private easement will be required from the property to the west for the benefit of the
subject property and the EDA site to the east to alIow a drainage swale or stormwater
pipe to be constructed to direct drainage to the regional pond. The applicant will be
responsible for preparing and obtaining the necessary easements.
5. City Engineer's approval of the final construction plans is required prior to any
excavation, grading, or construction on site.
6. Review and approval by the City Engineer and Plarming Director of the final parking
arrangement and site circulation is required prior to construction.
7. The applicant should be aware that unusual pedestrian crossings, reduced speed signs or
special turning Ianes are not recommended due to the industrial uses in the area and
truck traffic on 5th Avenue.
8. The two parcels must be tax combined at the County prior to approval of the building
permit for construction of the building.
9. Sign permits are required prior to installation of the signage.
10. SAC/WAC fee in the amount of $47,200 (16 units x $2,950) will be due at the time of
building permit.
Co (y) )
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Resolution #13255
Conditional Use Permit, Site Plan, Vacation
Charter School - 1000/1010 - 5th Ave SE
City Council- August 28, 2007
Page 2
11. Landscape plan must be reviewed and approved by the City Forester. Required
landscaping and buffer shall be completed by November, 2008.
12. Details on the fence construction and approval of a fence permit are required prior to
construction.
13. Exterior lighting must be shielded and shall not cause glare to adj acent properties.
Adopted by the City Council this 28th day of August, 2007.
ATIEST:
Gary D. Plotz
City Administrator
Steven W. Cook
Mayor
wcp)]
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PUBLICATION NO,
ORDINANCE NO. 07-0472
AN ORDINANCE OF THE CITY OF HUTCHINSON, MINNESOTA VACATING UTILITY AND
DRAINAGE EASEMENTS LOCATED BETWEEN LOTS 2 AND 3, BLOCK 2,
GOEBEL'S ADDITION
THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA ORDAINS:
Section I. Notice of hearing was duly given and publication of said hearing was duly made and
was made to appear to the satisfaction of the City Council that it would be in the best interests of
the City to vacate utility and drainage easements located between Lots 2 and 3, Block 2, Goebel's
Addition.
Section 2. That the utility and drainage easements to be vacated are described as follows:
Vacate part of the 6.00 foot wide drainage and utility easement lying westerly of and adjoining
the east line of Lot 2, Block 1, GOEBEL'S ADDITION, according to the recorded plat thereof.
The north line of said part of the easement to be vacated being the south line of the North 20.00
feet of said Lot 2 and the southerly line of said part of the easement to be vacated being the
northerly line of the Southerly 10.00 feet of said Lot 2.
Also, vacate part of the 6.00 foot wide drainage and utility easement lying easterly of and
adjoining the west line of Lot 3, Block I, GOEBEL'S ADDITION, according to the recorded pIat
thereof. The north line of said part of the easement to be vacated being the south line of the North
20.00 feet of said Lot 3 and the southerly line of said part of the easement to be vacated being the
northerly line of the Southerly 10.00 feet of said Lot 3.
Section 3. This ordinance shall take effect from and after passage and publication.
Adopted by the City Council this 11 th day of September, 2007.
ATTEST:
Gary D. Plotz
City Administrator
Steven W. Cook
Mayor
~c~)\
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MEMORANDUM
DATE:
TO:
FROM:
August 22, 2007 for the August 28, 2007 City Council meeting
Hutchinson City Council
Rebecca Bowers, A1CP, Planning Director
SUBJECT: CONDITIONAL USE PERMIT TO MOVE A HOUSE TO 16S_STH AVE. N.W,
REQUESTED BY PAUL AND ROSE BOLDUC
Backaround:
The applicant is re~uesting a conditional use permit to move a house onto an existing vacant
lot located at 1155-5 Ave. N.W. There is a large drainage and utility easement on the property,
which is planned for a stormwater pond to be constructed by the City in 2008. The lot area is
35,380 sq. ft., however the easement area covers approximately 23,389 sq. ft. ofthe lot. The
applicants propose to move an approximately 2,000 sq. ft. house and a 960 sq. ft. detached
garage onto the site. The main issue for this site is drainage.
Additional information is contained in the attached Planning Commission staff report.
. Plannina Commission Meetina:
The Planning Commission held a public hearing and considered the request at their August
21,2007, meeting. There were comments from adjacent property owners with questions
and concerns over drainage in the area. The area has long term issues with drainage and
standing water. Staff stated that the pond to be constructed will provide stormwater
holding capacity and that the new structure will be required to have all building openings
two feet higher than the pond elevation. Another neighbor asked why another pond was
needed and didn't feel that drainage was enough of a problem to construct another pond in
the city. Discussion continued on stormwater drainage and the functions of holding ponds.
The applicant clarified that he would build a garage on site, instead of moving a garage to
the property. Also discussed were the elevations of adjacent property compared to the
subject site and pond. Staff stated that a large amount of fill would need to be removed
from the site and that no stockpiling or grading will be allowed within the easement area.
After expressing caution to the applicants regarding drainage and fill issues on the site, the
i Commission recommended approval.
Recommendation:
The Planning Commission unanimously recommended approval of the conditional use permit,
with the findings and conditions in the attached resolution.
.
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To: Hntchin$on Planning Commission
Franl: Brad Emans,Dolf Moon, Dav'e Hunstad, Miles Seppelt, Shan Gbimire; Jea.n
Ward" Judy FlemmiI).g,... John Webster, Joh.n O!lson, Lenny Rutledge, Kyle
Dimlet, Kent Exner, John Paulson, Mark Schnobtich,Marc'Sebor3;; Gary
Plotz, Ken Merrill, Jim Popp, Dan H~tten, Dick Nagy, Rebecca Bowers and
Bonnie Baumetz (persons. in attendance ~t Planning Staff Meeting (in bold)
Date: August 8, 2007, for August 21, 2007,. Planning Commission M'eeting
Application: Conditional U'sep'ermit to mQve a hou~e and gar-~ge onto vacant. property
located at 165 - SOl Ave. N.W.
Applicant: Paul and Ros,e Bolduc~ applicant
P3tJI Betker, property owner
CONDITIONAL. USE PERMIT
Brief Description :
The applicant is requesting a conditional use permit to, move a house and garage onto an existing
vacant lot locQ.ted at 165-Sth Ave,. N.W. There is a.large drainage and utility easeme.nt on the
property~ which is planned for a stormwater pond to 'be constructed by the City in 2008. The lot
area is 35,380 sq. ft~,however the easement area covets approximately 23,389 sq. ft. bfthe lot.
The applicants propose t9 move an ~pprox:imate]y 2,000 s,q. ft. house c;lnd a 960 sq. ft. detach.ed
garage onto the site. The main issue for this site is drainage. The following map identifies the.
site and surrounding area.
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Conditional Use Permit
165 - 51b Ave. N.W.
Planning Commission - 8/21/07
Page 2
GENERAL INFORMATION
Existing Zoning:
R2 (Single and Two fantily residentiaI)
Property Location:
165 - 5th Ave. N.W.
Lot Size:
35,380 sq. ft.
Existing Land Use:
Vacant
Adjacent Land Use
And Zoning:
Single family
Comprehensive
Land Use Plan:
Traditional Residential Neighborhood
Zoning History:
The lot was platted as Lot 5, Block 7, North Half of Hutchinson, in IS79.
The City purchased a drainage and utility easement from the property owner in
2005. The easement was requested for stormwater protection in the area.
Applicable
Regulations:
Section 154.121 and 154.20, Hutchinson City Code
Transportation:
5th Avenue N.W.
Analysis and
Recommendation:
The applicants propose to move an existing home and garage onto the subject property. The main
concern with this site is drainage, specifically with the property to the east and drainage flowing from the
fann field to the north that flows through this subject site. The elevation of the home will be critical in
reducing potential drainage issues on the site. Staff discussed protection of the property to the east and
the future stormwater pond which is planned for construction in 200S. There was also discussion
regarding the amount of soil correction that may be needed on the site. Staff met with the applicants on
site to discuss the placement of the home and garage on the lot and required elevations. Staff advised the
applicants that no grading, sloping, or storage will be allowed in the easement area, all work must be dope
outside of the easement. Staff discussed with the applicants that there will likely be water on site in the
future and that the pond will likely have water present throughout the year as it is designed to hold water.
Staff recommends approval with the following conditions and reservations:
1. A pre-move inspection of the house and garage by the Building Department is required prior
to moving any structures onto the site. All required work must be completed before a
certificate of occupancy will be issued.
2. Approval of a moving permit is required prior to moving any structures. The applicant shall
compIy with Section 150.20 of the City Code regulating the moving of buildings, including
detaiIs on the dates of moving, hours, rerouting, movement, parking, and appropriate fees.
3. The property must comply with the standards of the R2 (Single and Two family residentiaI)
zoning district. No variances are granted or implied.
/.Q [c- J 3.
Conditional Use Permit
165 - 5th Ave. N.W.
Planning Commission - 8/21/07
Page 3
. 4.
5.
6.
7.
8.
9.
The lowest building opening must be at or above 1071 feet, to allow an elevation at least 2
feet above the pond elevation, which is planned to be approximately 1069 feet.
Building Department approval of the fill and building pad is required prior to construction.
Soil correction may be needed to provide a suitable building pad.
Structures must be placed on suitable fill. Existing fill located on the site cannot be used for
building area.
The property owners are advised that the subject property and surrounding properties have
had drainage issues in the past. Construction of the stormwater pond on site is proposed to
provide storage of stormwater and the site is likely to have standing water on site.
No structures, grading or fill will be allowed in the drainage and utility easement. All
construction work, including grading and sloping, must be done outside of the easement area.
Property owners are responsibIe for all labor and material costs if needed for moving
overhead lines or other utilities during and after the house move.
.
Cc: Paul and Rose Bolduc, 326 Monroe St. S.E.
Paul Betker, 37 Monroe St. S.E.
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BUILDING PeRMIT SURVEY FOR
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LOT 5, BLOCK 7, NORTH HALF OF HUTCHINSON
EASEMENT DESCRIPTION
An lo.emlnt for drolftC191 and utility plWpOJlS over, undlr and acro:sl tMt ptJI't 0' LOI .,. 8k1clt 7.
NORTH HAlF OF HUtCHINSON, dlscrlbed tiS follows:
Com""nclng at thl southw"t cornlr ot said Lot .5: ~I Nsterl,., aloDQ 'he louth 11" of 1010' Lot' a
dlstancl of 80.00 flit to the beginning oft'" IGslIMnt to bl descrlbld: thlftCe northlrly, pOl'12I111 with
thl west lint of 1010' Lot :5 a distance of 1"'-00 f..r. Ihlncl w..terl,. to a polnl on thl W.S, Ilnl of
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lhe WI,t line of sold Lol 5 to the .north.." corner of sold Lot 5: tlMinel 10sl.rl)', (I/Ono the norm Unl
of solei Lot 5 to thl northl<lsl CtM'nef of said Lot 5: thlncl soum.r1y, along the losl Un. of sold \.ot 5
t4 the southID5f corner of :sold LOI 15: thlnee ..."rly. along IhI south line of $010' Lot ~ 10 the point
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TOfal Lot Area 30380 Sq Ff
Easement Area 23389 Sq Ft
Building Footprint Neo 0' $I'lown . 2178 Sq Ft
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PROPOS€O TOP Of fOUNOATION . 1072,15
PROPOSED BASEMENT FtOOO . 1064.8
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PROPOSEO GARAGE FLOOR . 1011.!l
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Point spot on top of curb n.or the
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Elevation. 1073.32
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RESOLUTION NO, 13254
RESOLUTION APPROVING A CONDITIONAL USE PERMIT TO MOVE A HOUSE TO
PROPERTY LOCATED AT 165 - 5TH AVENUE N,W,
Whereas, Paul and Rose Bolduc, applicants, have requested approval of a conditional use permit to move
a house to I 65_5th Avenue N.W. with the following legal description:
LegaI Description:
Lot 5, Block 7, North Half of Hutchinson
Whereas, the PIanning Commission has held a public hearing on August 21, 2007, on the request and
considered the requirements of the Zoning Ordinance and the effects of the proposal on the health, safety,
and welfare of the occupants of the surrounding lands, existing and anticipated traffic conditions, and the
effect on values of properties in the surrounding area and consistency with the Comprehensive Plan, and
hereby recommends approval of the request.
The City Council has considered the recommendation and findings ofthe Planning Commission and
hereby approves the conditionaI use permit subject to the following findings and conditions:
1.
2.
. 3.
4.
5.
6.
7.
8.
9.
A pre-move inspection of the house by the Building Department is required prior to moving
any structures onto the site. All required work must be completed before a certificate of
occupancy will be issued.
Approval of a moving permit is required prior to moving any structures. The applicant shall
compIy with Section 150.20 of the City Code reguIating the moving of buildings, including
details on the dates of moving, hours, rerouting, movement, parking, and appropriate fees.
The property must comply with the standards of the R2 (Single and Two family residential)
zoning district. No variances are granted or implied.
The lowest buiIding opening must be at or above 1071 feet, to allow an elevation at least 2
feet above the pond elevation, which is planned to be approximately 1069 fi:et.
Building Department approval of the fill and building pad is required prior to construction.
Soil correction may be needed to provide a suitable building pad.
Structures must be pIaced on suitable fill. Existing fill located on the site cannot be used for
building area.
The property owners are advised that the subject property and surrounding properties have
had drainage issues in the past. Construction of the stormwater pond on site is proposed to
provide storage of stormwater and the site is likely to have standing water on site.
No structures, grading or fill will be allowed in the drainage and utility easement. All
construction work, including grading and sloping, must be done outside of the easement area.
Property owners are responsible for all labor and materiaI costs if needed for moving
overhead lines or other utilities during and after the house move.
Adopted by the City CounciI this 28th day of August, 2007.
ATTEST:
Gary D. Plotz
City Administrator
Steven W. Cook
Mayor
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MEMORANDUM
DATE:
TO:
August 22, 2007 for the August 28, 2007 City Council meeting
Hutchinson City Council
FROM:
Rebecca Bowers, AICP, Planning Director
SUBJECT: ZONING ORDINANCE AMENDMENT REGARDING NON-CONFORMING USES
AND STRUCTURES
BackQround:
The proposed ordinance amendment regarding legally non-conforming uses and structures
is needed to bring the City's zoning ordinance into conformance with changes in the State
Statutes. The Statute was changed to allow a legally non-conforming use or structure to
rebuilt if damaged beyond 50% of the assessed value, provided a building permit is applied
for within 180 days of when the property is damaged. Additional information regarding the
ordinance is contained in the attached Planning Commission staff report.
PlanninQ Commission MeetinQ:
The Planning Commission held a public hearing and considered the request at their August
21,2007, meeting. There were no comments from the public on the request. After briefly
discussing the merits of the ordinance, particularly in older areas of the city, the Planning
Commission unanimously recommended approval.
Recommendation:
The Planning Commission unanimously recommended approval of the zoning ordinance
amendment as stated in the attached ordinance.
&JCL-J S
DIRECTORS REPORT - PLANNING DEPARTMENT
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To:
From:
Date:
Subject:
Hutchinson Planning Commission
Brad Emans, DoIf Moon, Dave Hunstad, Miles Seppelt, Shan Gbimire, Jean Ward,
Judy Flemming, John Webster, John Olson, Lenny Rutledge, Kyle Dimler, Kent
Exner, John Paulson, Mark Schnobrich, Marc Sebora, Gary Plotz, Ken Merrill, Jim
Popp, Dan Hatten, Dick Nagy, Rebecca Bowers and Bonnie Baumetz
(persons in attendance at Planning Staff Meeting (in bold)
July 31, 2007 for August 21, 2007 Planning Commission
Zoning Ordinance Amendment to Section 154,150 Regarding Non-conforming
Uses and Structures
.
.
ZONING ORDINANCE AMENDMENT:
The proposed ordinance amendment regarding legally non-conforming uses and structures is needed to
bring the City's ordinances into conformance with changes in the State Statutes.
A "legally non-conforming use or structure" is that which was legal when it was constructed, however
it has become non-conforming due to adoption of ordinances over the years. The City of Hutchinson
has many structures that were built prior to modern zoning ordinances that have become non-
conforming due to ordinance changes. ExampIes would be a house with non-conforming setbacks that
was constructed prior to current setback regulations or a single family home located in the C-3 (Central
Commercial) district.
The existing ordinance does not allow rebuilding of non-conforming uses or structures if damaged
beyond 50% of the current value, unless it is reconstructed in conformance with the current ordinance.
Therefore, if a structure burned down, it could only be rebuilt by conforming to zoning regulations,
uses, setbacks, etc. The intent of the existing regulations is to replace non-conforming structures and
uses with conforming structures and uses as they are rebuiIt. However, State Statutes have changed
regarding legaI non-conformities requiring an update ofthe City's ordinances.
The Statute allows a legally non-conforming use or structure to rebuilt if damaged beyond 50% of the
assessed value, provided a building permit is applied for within I80 days of when the property is
damaged. Additional language was also added to update the language for reconstruction within the
flood plain. The attached draft ordinance contains the necessary changes for the PIanning
Commission's review.
Conclusion:
Staff recommends approval of the attached ordinance to bring the City's regulations into compliance
with current Statutes. The Commission should hold a public hearing and provide a recommendation
to the City Council.
laL~') 3
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PUBLICATION NO,
ORDINANCE NO. 07-0468
AN ORDINANCE AMENDING THE HUTCHINSON CITY CODE SECTION 154.153
REGARDING NON-CONFORMING USES AND STRUCTURES
THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA ORDAINS:
Notice of public hearing and publication of said hearing was duly made and determined to the
satisfaction of the City Council that it would be in the best interests of the City to amend the City
Code to update regulations of nonconforming uses to comply with State Statutes.
9154.153 NONCONFORMING USES OF STRUCTURES.
(A) If a lawful use of a structure, or of a structure and premises in combination, exists
at the effective date of adoption or amendment of this chapter that would not be
allowed in the district under the terms of this chapter, the lawful use may be
continued so long as it remains otherwise lawful.
(B) The continued use is subject to the following provisions.
(1) No structure thus described may be enlarged, extended, converted,
reconstructed or structurally altered unless the use of the structure is
changed to one permitted within the district in which the building is
located. The nonconforming use shall not thereafter be resumed.
(2) Should the structure be destroyed by any means to an extent of more than
50% of its assessed market value at time of destruction, it mav be
reconstructed if a buildinf! permit is applied for within 180 davs from the
date of destruction and the nonconformity is not increased. In this case.
the Citv mav impose reasonable conditions upon a buildinfl permit in
order to mitiflate anv newlv created impact on adiacent property. shell
net bc recanstructed exccpt in cenfa_it}' '.l'it,~ the pr-8',isians af this
chapter.
(3) Should the structure be moved for any reason for any distance whatsoever,
it shall thereafter conform to the regulations for the district in which it is
located after it is moved.
(4) When a nonconforming use of a structure, or a structure and premises in
combination, is discontinued or abandoned for more than one year, the
structure, or structure and premises in combination, shall not thereafter
be used except in conformance with the regulations of the district in which
it is located.
Leee-) ~
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Ordinance 07-0468
Section 154.153 - Non-conforming uses and structures
City Council- 9/11/07
Page 2
(5) When a nonconforming use status applies to a structure and premises in
combination, removal or destruction of the structure shall eliminate the
nonconforming status of the land.
(6) If any nonconforming structure in the floodway or floodfringe district is
destroyed by any means, including floods, to an extent of 5 0% or more of
its market value at time of destruction, it shall not be reconstructed except
in conformity with the provisions of this chapter. However, the City ~
Planning Cemmis,si811 may issue a conditional use permit for
reconstruction if the use is located outside the floodway and, upon
reconstruction, is adequately flood proofed, elevated or otherwise
protected in conformity with H I 54. 085 - I54. 099 of this code, to the
extent necessary to maintain elirdbilitv in the National Flood Insurance
Prof!ram and not increase flood damaf!e votential or increase the def!ree
of obstruction to flood flows in the floodwav.
(7) An alteration or addition to any nonconforming structure located only in
the flood plain which would result in substantially increasing its damage
potential shall be protected in accordance with S S 154.085 - 154.099.
(89 Code, S 11.4.04) (Ord. 464, passed I--96) Penalty, see S 10.99
EFFECTIVE DATE OF ORDINANCE. This ordinance shall take effect upon is adoption and
publication.
Adopted by the City Council this 11th day of September, 2007.
Attest:
Gary D. Plotz
City Administrator
Steven W. Cook
Mayor
1ou-'J3
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MEMORANDUM
POLICE I EMERGENCY MANAGEMENT SERVICES
TO: Sharon Anderson
FROM: Officer Theresa Leider/Investigations
DATE: 8/20/2007
RE: Transient Merchant License Background
As of today's date, I have completed a background investigation on Charles Homier for a
Transient Merchant's License. Mr. Homier has applied and been granted transient
merchant license by the City of Hutchinson in 2004, twice in 2002 and in 2001.
During the course oLeo
in the applicant's b
If you have any fu
contact me.
othis matter, please
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III 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)
o Solicitor
Oil Transient Merchant
o Peddler
OParade Peddler
$100.00
$100.00
$100.00
$25.00
Date of Application 7/18/07
Date(s) of Sale 9/5/07
A lieant Information
2" X 2" Picture Required
Name: CHARLES F. HOMIER, JR.
Height: ~, 11" Weight: 200 Eye Color: BROWN
Driver's License Number: _ State: IN
Permanent Address: 601 E. LAMONT RD/HUNTINGTON, IN 4675
. ffilNTINQTON IN 46750
City Stale Zip
Permanent Telephone: 260-356-0146
Temporary Address: N If.
City Slale Zip
Temporary Telephone Access: N I A
Have youlJeen convicted of any crime, misdemeanor, or violation of any municipal ordinance, other than
traffic violalions? 0 yes ~ no
If yes, slate the nature of offense and punishment or penalty assessed therefore:
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City of Hutchinson
Applicationfor Peddlers, Solicitors, and Transient Merchants
Page2of4
Location Infonnation
NATIONAL GUARD ARMORY
Localion Name
1200 ADAMS STREET S,E,
Location Address
HUTCHINSON
Ci
MN
State
55350
Zi
Business Infonnation
Describe relationship between applicant and employer:
SELF - OWNER
Describe nature of business and describe item(s) offered;
DIRECT RETAIL SALE OF NEW FIRST QUALITY TOOLS AND GENERAL MERCHANDISE,
Describe method of delivery:
CUSTOMERS WILL TAKE THE MERCHANDISE WITH THEM AT TIME OF PURCHASE,
Describe source of supply:
HOMIER DISTRIBUTING COMPANY PURCHASES MERCHANDISE FROM NUMEROUS SUPPLIERS
Supplier Name S1;/er Phone Numher
WEEKLY, MERCHANDISE IN OUR WAREHOUSE IS REPLENSIHED WEEKL , AND IS
Supplier Address City State lip
MANUFACTURED DOMESTICALLY AND IN THE ORIENT,
Supplier Name Suppler Phone Number
Supplier Address City Stafe Zip
Supplier Name Suppier Phone Number
Su lier Address City Stale Z'D
Reference Information
Provide two (2) property owners (preferably in McLeod County) for character references:
SF:F. ENCLOSED
Property Owner Name
Property (fi1'ner Phone Number
Property Owner Address
City
Slale
Zip
Property Owner Name
Property Owner Phone Number
Pro er Owner Address
Ci
State
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City of Hutchinson
Applicationfor PeddJers, Solicitors, and Transient Merchants
Page 3 of4
Reference Information (continued)
List last (up to three (3)) previous city(ies) where you earned on same activity:
HOUMA
LA
7/1R
to 7/72
Date(s) of Activity .
City State
THIBODAUX T,A 7 III
City State
CUT OFF LA 7/4
City State
to .. 7,1 15
Oate(s) of ActiVIty
to 7/P.
Date(s) of Activity
Checklist
The following items need to be completed andlor attached in order for the application to be processed:
Application/Investigation fee paid in full (check or money order): Oo/es D no
Aoolication comoleted in full and sirned: iJI: yes D 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 thereof 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.
7/19/07
Date
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H/LkenseslApplicalions/Peddler, Solicitor, TramienLdo<:
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. CITY OF HUTCHINSON
MEMO
Finance Department
August 23, 2007
TO: MAYOR & CITY COUNCIL
FROM: KEN MERRILL, FINANCE DIRECTOR
SUBJECT: 2008 BUDGET HEARING
At the last City Council meeting a public hearing was scheduled
for the 2008 budget. This will provide the public an opportunity
to give their input on the 2008 budget.
As we move to the first deadline of September 15th for setting a
preliminary tax levy, we will provide you an update on the 2008
proposed budget.
H:\DOC\City council memo l.doc
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MEMORANDUM
Date: August 15, 2007
To: Honorable Mayor & City Council
From: Miles R. Seppelt
Economic Development Director
RE: "Business Subsidies" Public Hearing for Customer Elation Call Center
Before we provide any type of assistance to a business, we are required by state law to
hold a public hearing on the proposed assistance.
This public hearing has been called and will take place at the City Council meeting of
August 28, 2007.
Included in your Council packet are:
A) Copy of the agreement with Customer Elation, which details the assistance
provided as well as the obligations of the company.
B) Copy of the resolution approving the granting of a business subsidy.
Everything has been previously reviewed and approved by the EDA Finance Team and
the EDA Board of Directors.
For the public hearing, Shan Ghimire, our EDA intern, will be making a presentation to
go through all the provisions of the Business Subsidy Agreement for the benefit of the
public and the City Council.
1Gb)
Hutchinson
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An fconomic Dcvclopmcnr Aurhority
CITY OF HUTCHINSON
BUSINESS SUBSIDY AGREEMENT
WITH
CUSTOMER ELATION, INC.
7[b)
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This Business Subsidy Agreement (the "Agreement") is made as of this _ day of
August 2007, between the City of Hutchinson, Minnesota (the "Grantor") and Customer
Elation Inc. (the "Recipient"). In order to satisfy the provisions of Minnesota Statutes,
Sections 116J.993 through 116J.995 (the "Act"), the Recipients acknowledge and agree
as follows:
1. Descriotion of Business Subsidy.
The Business Subsidy shall include the following:
.
a. Enactment of a Job Opportunity Build Zone, which shall include all tax
exemptions, job credits or other business subsidies provided from the
Approval Date until the last date of the Job Zone Term, including but not
limited to:
i. Exemption from individual income taxes as provided under M.S.
469.316; and
ii. Exemption from corporate franchise taxes as provided under M.S.
469.317; and
iii. Exemption from the state sales and use tax and any local sales
and use taxes on qualifying purchases as provided in M.S.
297A.68, subdivision 37; and
iv. Exemption from the state sales tax on motor vehicles and any
local sales tax on motor vehicles as provided under M.S. 297B.03;
and.
v. Exemption from the property tax as provided in M.S. 272.02,
subdivision 64; and
vi. Exemption from the wind energy production tax under M.S.
272.029, subd. 7; and
vii. The jobs credit allowed under M.S. 469.318;
b. A Loan in the amount of $500,000 at an annual interest rate of 0% with a
term of 7 years funded by the Minnesota Investment Fund.
c. At the option of the company. sale of 3.89 acres of the Development Site,
legally described as Block 2, Lot 2, Hutchinson Fifth Avenue Industrial
Park, under the Hutchinson Economic Development Authority's Land
Write Down Program.
d. At the option of the company. sale of 1.797 acres of the adjoining
development site. Block 2, Lot 1, Hutchinson Fifth Avenue Industrial Park,
under the Hutchinson Economic Development Authority's Land Write
down Program, provided that the company uses the property for the
expansion of its business.
.
2. Public Puroose of the Business Subsidv. The publiC purposes of this Business
Subsidy are to:
a. Enhance the economic diversity of the city
b. Create high quality job growth
c. Stabilize the community
d. Increase the tax base of the community
iLb)
.
3. Goals of the Business Subsidv. The measurable, specific and tangible goals of
the business subsidy that the Qualified Business must achieve are to:
a. Create 100 new full-time or full-time equivalent (FTE) jobs within two
years of the Benefit Date. As used herein, the terms "full-time", "full-time
equivalent" and "(FTE)" means those jobs providing at least 2,080 work
hours in a given year. "Benefit Date" means when a Certificate of
Occupancy is issued for the Recipients new call center facility located in
Hutchinson, Minnesota.
b. Maintain the new FTE jobs created as a result of the Project for the entire
length of the Job Zone Term and within the subzone boundary.
c. Provide a cash wage for the new FTE jobs created at least equal to the
U.S. Department of Health & Human Services Poverty Level for a family
of four as it stands on the date this agreement is signed, exclusive of
benefits. (As of 8(2(2007 this is $9.93 ( hour).
d. Provide combined compensation (wage & benefits) for each FTE job
created at least equal to 110% of the Federal Poverty Level for a family of
four. (As of 8(2f2007this is $10.92 f hour).
.
4. Whv the Business Subsidv is Needed. The Business Subsidy is needed because
the Grantor is desirous of the Recipient undertaking the Project in order to
enhance the economic diversity of the city, create high quality job growth,
stabilize the community and enhance the tax base in the Grantor's area of
operation and because the Project is not economically feasible for the
Recipient to undertake without the Business Subsidy.
5. Continued Operations. The Recipient agrees to continue its operations in the City
for at least five (5) years after the Benefit Date, or until the expiration of the
JOBZ benefit (currently scheduled for December 31, 2015) whichever is later.
As used herein "Benefit Date" means when a Certificate of Occupancy is
issued for the Recipients new call center facility located in Hutchinson,
Minnesota.
6. Financial Obliqation of the Recipient if Aqreement Not Fulfilled. As required in
Minnesota Statutes, Section 116J.994, Subdivision 6, if the Recipient fails to
meet the goals contained in paragraph 3 herein, the Recipient will repay all of
the Business Subsidy to the Grantor plus interest set at the implicit price
deflator defined in Minnesota Statutes, Section 275.70, Subdivision 2,
accruing from and after the Benefit Date, compounded semiannually.
7. Reportinq Requirements.
a. The Recipient agrees to furnish to the Grantor on or before March 1 in
each year the report required in Section 116J.994, Subdivision 7 of the
Act on forms developed by the Minnesota Department of Employment
and Economic Development.
.
7(6)
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b. If the Grantor does not receive the reports, it will mail the Recipient a
warning within one week of the required filing date. If within fourteen (14)
days of the post marked date of the warning the reports are not made, the
Recipient agrees to pay to the Grantor a penalty of $100 for each
subsequent day until the report is filed up to a maximum of $1,000.
8. Parent Corporations. The Recipient warrants that it has no parent corporation.
9. Other Grantors. At this time, the Grantor and the Recipient understand that no
other financial assistance aside from that enumerated in this Business
Subsidy Agreement is being provided by other state or local government
agencies for the Project.
10. Term of Aoreement. This Agreement will be in full force and effect until the earlier
of the Recipient meeting all of their obligations hereunder or the provisions of
the Act no longer apply to the Grantor, the Recipient or the Project, in which
case this Agreement will be terminated.
11. Not a Relocatino Business. The Recipient warrants that it is a business that is
expanding its operations and its payroll within the City of Hutchinson JOBZ
subzone while maintaining its current operations at its present location.
Further, the parties are relying on an opinion provided by the Minnesota
Department of Employment and Economic Development (DEED) that the
Qualified business IS NOT a relocating business as defined by the JOBZ
statute, M.S. 469.310 ~ 469.320.
The Grantor and the Recipient have executed this Agreement as of the date written
above.
Grantor:
CITY OF HUTCHINSON, MINNESOTA
By
Steven W. Cook
Mayor
By
Gary D. Plotz
City Administrator
Recipient:
CUSTOMER ELATION, INC.
By
Its
7(6)
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Exhibit A
TAX PARCEL
Parcel Number
Address
23-470-0030
1150 5th Avenue SE
Hutchinson, Minnesota, 55350
LEGAL DESCRIPTION
Lot 2, Block 2, Hutchinson Fifth Avenue Industrial Park
City of Hutchinson, McLeod County, Minnesota
7(b)
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RESOLUTION NO.
11~'iq
RESOLUTION APPROVING THE GRANTING
OF A BUSINESS SUBSIDY
WHEREAS, it is the responsibility of the City Council to provide for the health, safety and
general welfare of the community, and;
WHEREAS, to achieve those goals it is necessary to have a strong and diversified local
economy, and;
WHEREAS, creating new, high paying jobs and increasing the local tax base provides
benefits for the entire community and enhances the long-term economic viability of the City
of Hutchinson, and;
WHEREAS, Customer Elation, Inc. is a successful and rapidly growing company that will be
a valuable addition to Hutchinson's economic base, and;
WHEREAS, the Hutchinson Economic Development Authority has carefully reviewed the
project and the proposed business subsidies and recommends their approval;
.
THEREFORE BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF
HUTCHINSON, MINNESOTA,
Hereby approves the granting of the following business subsides to Customer Elation, Inc.:
a. Enactment of a Job Opportunity Build Zone, which shall include all tax exemptions
authorized by the JOBZ statute:
i. Exemption from individual income taxes as provided under M.S. 469.316;
and
ii. Exemption from corporate franchise taxes as provided under M.S. 469.317;
and
iii. Exemption from the state sales and use tax and any local sales and use
taxes on qualifying purchases as provided in M.S. 297A.68, subdivision 37;
and
iv. Exemption from the state sales tax on motor vehicles and any local sales tax
on motor vehicles as provided under M.S. 297B.03; and,
v. Exemption from the property tax as provided in M.S. 272.02, subdivision 64;
and
vi. Exemption from the wind energy production tax under M.S. 272.029, subd. 7;
and
vii. The jobs credit allowed under M.S. 469.318;
.
b. A Loan in the amount of $500,000 at an annual interest rate of 0% with a term of 7
years funded by the Minnesota Investment Fund.
1 ()-::> )
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c. At the option of the company, sale of 3.89 acres of the Development Site, legally
described as Block 2, Lot 2, Hutchinson Fifth Avenue Industrial Park, under the
Hutchinson Economic Development Authority's Land Write-down Program.
d. At the option of the company, sale of 1.797 acres ofthe adjoining development site,
legally described as Block 2, Lot 1, Hutchinson Fifth Avenue Industrial Park, under
the Hutchinson Economic Development Authority's Land Write-down Program,
provided that the company uses the property for the expansion of its business.
Adopted by the City Council this 28h day of August 2007.
ATTEST:
Steven W. Cook
Mayor
Gary D. Plotz
City Administrator
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ORDINANCE NO, 07-0471
~ 73,15 ALL-TERRAIN VEHICLE TRAFFIC CONTROL AND REGULA nONS
(f.) Seope of applieatiell. Netwithstandiag previsiells efthis tit~e to the eeooary, this
seetiell saall apply to eOlltr-ol of traffie ane regulatioll of that eertaill class ef yehieles
falliflg within ilie eefinitioH of all terraiH vellicles as to matters set forth hereil'i. .\11
pro'/isiefls ef this title Hot relatiHg to matters herein statee, apj3ly as ellHally to
sfle'.vmoeiles as other vehicles.
(B) Certain starntes aeoj'ltee. M.S. ~~ 84.92 84.929,asitmltyeeamefldedfrem
time to time, together with rules and regulations promulgated therelHlder, are hereey
adoj3ted ey reference, iHcol'j'lorated herein, and made a part hereof.
(A) DEFINITIONS
(1) All-terrain vehicle or vehicle. "All-terrain vehicle" or "vehicle" means a
motorized flotation-tired vehicle of not less than three low pressure tires, but not more
than six tires, that is limited in engine displacement of less than 800 cubic centimeters
and includes a class 1 all-terrain vehicle and class 2 all-terrain vehicle.
(2) Class I all-terrain vehicle. "Class I all-terrain vehicle" means an all-terrain
vehicle that has a total dry weight of less than 900 pounds.
(3) Class 2 all-terrain vehicle. "Class 2 all-terrain vehicle" me.ans an all-terrain
vehicle that has a total dry weight of 900 to 1,500 pounds.
(B) OPERATING RESTRICTIONS.
It is unlawful to operate a Class 1 or 2 ATV as follows:
(I) On a public sidewalk or walkway used for pedestrian travel, or upon any
boulevard;
(2) On private property of another without lawful authority or permission of the
occupant or owner;
(3) On school grounds, park property, playgrounds, recreational areas and golf
courses, without express permission to do so by the property authority;
(4) Upon any county road or state highway within the city, or within the designated
downtown area as set forth in Chapter 74 Schedule I of this code;
(5) Upon any street, other than the most direct route from the owner's or operator's
residence to the nearest departure point from the city or appropriate sflo',vmobile trail.
When no such route exists without using a county road or state highway, then, in that
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event, the owner or operator may operate a sfls'.vmsaile an A TV on the county road or
state highway only to the intersection with a street, taking thereafter the most direct route
to the nearest departure point from the city or appropriate sHsvlHIsaile trail;
(6) During the hours between 10:00 p.m. and 7:00 a.m. of the day next following,
Sunday through Thursday, and the hours between 12:00 midnight and 7:00 a.m. of the
day next following, Friday and Saturday;
(7) At a rate of speed greater than reasonable or proper under all of the surrounding
circumstances or in any instance in excess of 20 mph upon a public street;
(8) At a speed greater than 10 mph when within 100 feet of any lake shore except in
channels or when within 100 feet of a fisherman, ice house, skating rink or sliding area,
or where the operation would conflict with the lawful use of property or would endanger
other persons or property;
(9) In a careless, reckless or negligent manner, so as to endanger the person or
property of another or cause injury or damage thereto;
(10) To tow any person or thing other than a disabled ATV upon a public street except
through the use of a rigid towbar; or
(11) To chase or run over any animal, wild or domestic.
(C) EQUIPMENT REQUIREMENTS.
A person shall not operate an all-terrain vehicle unless the vehicle is equipped
with at least one headlight and one taillight, each of minimum candlepower as prescribed
by rules of the Commissioner of Public Safety, and with brakes conforming to standards
prescribed by rule of the commissioner, and all of which are subject to the approval of the
commissioner of public safety.
(D) EMERGENCY OPERATION.
Notwithstanding any prohibition in this section, an ATV may be operated upon a
public street in an emergency during the period of time when, and at locations where,
snow upon the roadway renders travel by automobile impossible.
(E) OWNER RESPONSIBILITY.
It is unlawful for the owner of any A TV to permit its operation in violation of this
subchapter. The party holding title to the A TV shall be conclusively presumed to be the
owner unless the A TV shall have been stolen and so reported to a law enforcement
agency.
C1[o.- )
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Adopted by the Hutchinson City Council this
Steven W. Cook
Mayor
day of
,2007.
Gary D. Plotz
City Administrator
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DEBT SERVICE RESERVE ESCROW AGREEMENT
. THIS DEBT SERVICE RESERVE ESCROW AGREEMENT, dated as of
2007, by and between the CITY OF HUTCHINSON, MINNESOTA, a Minnesota
municipal corporation (the "City"), HUTCHINSON HEALTH CARE, a Minnesota
nonprofit corporation ("HHC") and , a , as Escrow
Agent (the "Agent").
RECITALS:
WHEREAS, the City and HHC are simultaneously herewith entering into a Lease and
Agreement dated as of , 2007 (the "Lease"), pursuant to which the City leases and
transfers the operation and assets of the Health Care System (as defined therein) to HHC.
WHEREAS, pursuant to the Lease, HHC is required to pay Annual Rent to the City
on the dates and in the amounts set forth therein (or otherwise incorporated therein by
reference), including an amount equal to all principal and interest due on, or with respect to,
the Existing Bonds (defined herein).
WHEREAS, the Lease contemplates that the parties will enter into this Debt Service
Reserve Escrow Agreement providing for, among other things, the creation and operation of
a debt service reserve account upon the terms and conditions hereof.
.
WHEREAS, the Agent is willing to enter into this Debt Service Reserve Escrow
Agreement and to undertake the duties set forth herein upon the terms and conditions set
forth herein.
NOW, THEREFORE, in consideration of the mutual agreements herein contained and
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto do hereby agree as follows:
1. DEFINITIONS
The following terms when used herein shall have the following meanings:
Agent: in, Minnesota, or any successor bank or trust
company acceptable to the City and HHC, acting as escrow agent hereunder.
Existing Bonds: The following bonds issued by the City: General Obligation Medical
Facilities Revenue Refunding Bonds, Series 1997B; General Obligation Medical Facilities
Revenue Refunding Bonds, Series 1998A; General Obligation Taxable Medical Facilities
Revenue Refunding Bonds, Series I998B; Taxable Medical Facilities Gross Revenue Bonds,
Series 1998; General Obligation Medical Facilities Revenue Bonds, Series 2002D; and
General Obligation Medical Facilities Revenue Bonds, Series 2003A.
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fb.us.2146671.02
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Maximum Annual Debt Service: As of any date, the greatest amount of principal of
and interest due on the Existing Bonds in the then current or any future twelve-month period
ending
Permitted Investments: Any of the following or any combination of one or more
thereof:
fb.us.2J 4667 J .02
(a) Direct obligations of the United States of America or obligations the
principal and interest of which are unconditionally guaranteed by the
United States of America.
(b) Bonds, debentures, certificates of participation or notes issued by the
Bank of Cooperatives, Federal Financing Bank, Federal Land Banks,
Federal Home Loan Mortgage Corporation, Federal Home Loan Banks,
Federal Intermediate Credit Banks, Federal National Mortgage
Association, Export-Import Bank of the United States, Farmers Home
Administration, Government National Mortgage Association or any
other agency or corporation which has been or may hereafter be created
by or pursuant to an Act of the Congress of the United States or an
agency or instrumentality thereof.
(c)
Shares of an Investment Company registered under the Federal
Investment Company Act of 1940, whose shares are registered under
the Federal Securities Act of 1933, which has as an investment
objective maintenance of a net asset value of $1.00 per share by
investment in "money market" instruments.
(d) Commercial paper of United States corporations rated P-l by Moody's
Investors Service or rated A-I by Standard & Poor's Ratings Group.
(e) Repurchase agreements entered into with dealers in U.S. government
securities collateralized at least 102% by bonds or other obligations
described in clauses (a) and (b) above if: (i) such obligations are
delivered to the Depository or are supported by a safekeeping receipt
issued by a depository satisfactory to the Depository, (ii) the value of
the underlying obligations shall be maintained at a current market
value, calculated no less frequently than monthly, of not less than the
current balance of the deposit; (iii) a prior perfected security interest in
the obligations which are securing such agreement has been granted to
the Depository and (iv) such obligations are free and clear of any
adverse third party claims.
(f)
Interest-bearing time or demand deposits, certificates of deposit,
bankers acceptances or other similar banking arrangements with any
bank or savings institution (including the Depository), provided that
such deposits, certificates and other arrangements are fully insured by
2
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the Federal Deposit Insurance Corporation, or secured by obligations
described in clauses (a) and (b) above, or a combination thereof.
(g)
Written investment contracts with a bank, bank holding company, trust
company, domestic branch of a foreign bank, domestic corporation or
insurance company whose similar obligations are rated "A2" or better
by Moody's Investors Service or "AA" or better by Standard & Poor's
Ratings Group.
Person: Any individual, corporation, partnership, limited liability company, Jomt
venture, association, joint stock company, trust, unincorporated organization, government or
Indian tribe, or any agency, instrumentality or political subdivision thereof.
2. DEBT SERVICE RESERVE ACCOUNT
.
Section 2.1. Debt Service Reserve Account. There is hereby created with the Agent a
separate account in the name of the Agent on behalf of HHC under this Debt Service Reserve
Escrow Agreement designated as the "Debt Service Reserve Account." HHC shall make an
initial deposit to the Debt Service Reserve Account on the date hereof in the amount of
$ , which is equal to Maximum Annual Debt Service on the Existing Bonds. In the
event that amounts paid by HHC pursuant to Section 3.I(a)(2) of the Lease are not sufficient
to pay principal of and interest on the Existing Bonds when due, and the City shall give
written notice thereof to the Agent, with a copy to HHC, the Agent shall transfer the amount
of the deficiency as specified in such written notice from the Debt Service Reserve Account
to the City to be applied to the payment of principal of and interest on the Existing Bonds
then due. HHC shall promptly restore the amount of any such transfer by deposit with the
Agent of moneys in the amount transferred.
Section 2.2. Release from Debt Service Reserve Account. The Debt Service Reserve
Account shall be maintained by HHC for the benefit of the City for so long as any Existing
Bonds remain outstanding. In the event that the amount in the Debt Service Reserve
Account exceeds the Maximum Annual Debt Service at any time, HHC shall be entitled to
withdraw such excess amount from the Debt Service Reserve Account, by notice in writing
to the Agent, with a copy to the City. All investment earnings on amounts on deposit in the
Debt Service Reserve Account shall be transferred to HHC upon receipt. Upon written
notice from the City that all Existing Bonds have been paid in full, any and all amounts
remaining in the Debt Service Reserve Account shall be transferred to HHC.
Section 2.3. Investment of Funds. The Agent shall invest and reinvest all money held
in the Debt Service Reserve Account in such Permitted Investments as HHC shall from time
to time direct pursuant to written instructions. Such Permitted Investments shall be
registered in the name of the Agent and held by the Agent. The Agent may purchase or sell
to itself or any affiliate, as principal or agent, investments authorized by this Section, as
directed in writing by HHC. The Agent shall, without further direction from HHC sell such
investments as and when required to make any payment required to be made from the Debt
.
fb.us.2J46671.02
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Service Reserve Account. The Agent shall not be responsible or liable for any loss resulting
from the making or disposition of any investment pursuant to this Section.
Section 2.4. Statements. The Agent shall provide monthly statements to HHC and
the City which monthly statements shall include the market value of the investments on
deposit therein, and the amount of any investment earnings on deposit therein.
3. THE AGENT
Section 3.1. Agent's Rights and Duties.
(a) The Agent undertakes to perform such duties as are specifically set forth in
this Debt Service Reserve Escrow Agreement, and no implied covenants or obligations shall
be read into this Debt Service Reserve Escrow Agreement against the Agent.
(b) In the absence of its own negligent acts or omissions, the Agent may
conclusively rely, as to the truth of the statements and the correctness of the opinions
expressed therein, upon certificates or opinions furnished to the Agent and conforming to the
requirements of this Debt Service Reserve Escrow Agreement; but in the case of any such
certificates or opinions which by any provision hereof are specifically required to be
furnished to the Agent, the Agent shall be under a duty to examine the same to determine
whether or not they conform to the requirements hereof.
(c) The Agent shall exercise such of the rights and powers vested in it by this
Debt Service Reserve Escrow Agreement, and use the same degree of care and skill in its
exercise, as a fiduciary would exercise or use in connection with the care and control of
another Person's funds.
(d) No provision of this Debt Service Reserve Escrow Agreement shall be
construed to relieve the Agent from liability for its own negligent action, its own negligent
failure to act, or its own willful misconduct.
Section 3.2. No Set-Off. The Agent shall not set-off from amounts on deposit in the
Debt Service Reserve Account, any obligations or other amounts which may be payable to
the Agent by HHC or by any other Person.
Section 3.3. Fees and Expenses. HHC agree to pay the Agent its fees and charges for
serving as Agent hereunder and to pay and reimburse the Agent on demand for all
out-of-pocket expenses (including in each case all filing and recording fees and taxes and all
reasonable fees and expenses of counsel) incurred or expended by the Agent in connection
with the creation, perfection, satisfaction, foreclosure or enforcement of the security interests
granted hereby and the preparation, administration and enforcement of this Debt Service
Reserve Escrow Agreement.
4. MISCELLANEOUS
tb.us.2146671.02
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Section 4.1. Governing Law. This Debt Service Reserve Escrow Agreement shall be
construed in accordance with and governed by the internal law of the State of Minnesota.
Section 4.2. Severability. If any provision of this Debt Service Reserve Escrow
Agreement is prohibited by, or is unlawful or unenforceable under, any applicable law of any
jurisdiction, such provision shall, as to such jurisdiction, be ineffective to the extent of such
prohibition without invalidation the remaining provisions hereof.
Section 4.3. Limited Indemnity. HHC agree to indemnify and hold the Agent
harmless against any loss, cost, expense, damage or liability arising out of or resulting from
any misrepresentation by HHC under this Debt Service Reserve Escrow Agreement or from
the failure by HHC to observe or perform any agreement or undertaking made by it in this
Debt Service Reserve Escrow Agreement or pursuant hereto.
Section 4.4. Notices. Any notice to any party to this Debt Service Reserve Escrow
Agreement shall be in writing and shall be sent by manual delivery, telegram, telex, facsimile
transmission, overnight courier or United States mail (postage prepaid), addressed to such
party at the address specified on the signature page hereof, or at such other address as such
party shall have specified to the other parties hereto in writing.
Section 4.5. Captions. Captions herein are for convenience only and shall not be
deemed part of this Debt Service Reserve Escrow Agreement.
Section 4.6. Binding Effect. This Debt Service Reserve Escrow Agreement shall be
binding upon and inure to the benefit of HHC, the Agent, the City and their respective
successors and assigns.
Section 4.7. Entire Agreement. This Debt Service Reserve Escrow Agreement
constitutes the entire understanding of HHC and the City with respect to the subject matter
addressed and supersedes any prior representations or agreements, whether written or oral,
with respect to the subject matter hereof.
fb.us.2146671.02
fb.llS.214667L02
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HUTCHINSON HEALTH CARE
By:
Its:
And by:
Its:
Address:
fb.us.2146671.02
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IN WITNESS WHEREOF, the parties hereto have executed this instrument under
seal as of the day and year first above written.
CITY OF HUTCHINSON
By:
Its:
And by:
Its:
Address:
fb.us.2146671.02
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[AGENT]
By:
Its:
Address:
fb.L1s.2146671.02
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Ordinance No. 07-0474
AN ORDINANCE APPROVING A DEBT SERVICE ESCROW AGREEMENT WITH HUTCHINSON
HEALTH CARE
WHEREAS, the City of Hutchinson has enacted ordinance number 07-0474 which authorizes the City to
enter into a lease agreement with Hutchison Health Care concerning the lease of certain property currently owned by
the City; and,
WHEREAS, said lease requires Hutchinson Health Care to undertake certain financial obligations and
make rent payments to the City; and,
WHEREAS, to facilitate the exercise of those obligations, the City and Hutchinson Health Care desire to
enter into a debt service agreement to ensure that there is adequate security to make said payments in a timely
manner,
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON,
THAT THE DEBT SERVICE ESCROW AGREEMENT ATTACHED AS EXHIBIT A TO THIS
ORDINANCE IS HEREBY ADOPTED BY THE CITY COUNCIL AND THA T THIS ORDINANCE
SHALL BE EFFECTIVE UPON PUBLICATION.
Signed this
day of
,2007.
Attest:
Gary D. Plotz, City Administrator
Steven W. Cook, Mayor
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City of Hutchinson - Hutchinson Health Care
Summary of Expectations for Attorney Services
Background:
Hutchinson Area Health care (HAHC) is the City-owned organization that will transfer
its operations to Hutchinson Health Care (HHC), a private, nonprofit, 501 (c)(3)
organization, on December 31,2007. Over the years, HAHC has paid the City for and
used up to 25% ofthe City Attorney's time. As part of the lease arrangement between the
City and HHC, HHC will be paying the City a set amount ($160,000 initially, escalating
annually by 5%) for use of the property assets and the services of the City Attorney.
Following are mutually agreeable expectations that define how HHC can continue to
access and use the City Attorney's services on a non-exclusive basis.
General Provisions:
The parties recognize that the Citv Attorney will be working as General Legal Counsel
for both HHC and the City and as such both parties agree to this dual representation as
required under Rule 1.7 of Minnesota Rule of Professional Conduct. As previouslv stated
in the lease agreement between the parties, the use of the City Attornev services bv
HAHC/HHC may be terminated bv either partv at anv time with no reduction in the
amount of the payment and its escalator bv HAHC/HHC.
. Responsibilities of the City Attorney:
. Be available to HHC during normal business hours to respond to requests ofHHC
for legal services, and be available for urgent issues during evenings and
weekends when not on vacation or away from the area;
. Provide legal assistance to HHC, including but not limited to contract review and
legal advice on a wide range of issues;
. Be present on the HHC campus at least 1 day per week, with the understanding
that the Attorney may perform non-HHC work during this time ifHHC does not
require legal services and Attorney documents the time spent on non-HHC
matters;
. Recognize that HHC, not the City, is the client, maintain the attorney-client
privilege and confidentiality of all HHC information obtained in representing
HHC (both with respect to the City and all other third parties) when working on
HCC matters, and address conflicts of interest with the City and other persons in
accordance with the rules of professional conduct.
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Responsibilities ofHHC:
. Provide a locked office area with a telephone and computer access that is
secure and used only by the Attorney and Attorney's staff;
. Limit requests and usage of the Attorney and staff to 25% of their time, unless
mutually agreed to by both parties;
. Provide adequate lead time for the Attorney to respond. If there is a time-
sensitive need, work will be prioritized;
. Reimburse at the sole expense ofHHC Legal Malpractice, errors and
omissions and all other appropriate insurance coverage in an amount not less
than 4 million dollars.
Gary Plotz, City Manager
Mary Ellen Wells, HHC President and CEO
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Ordinance No. 07-0476
AN ORDINANCE APPROVING AN ATTORNEY SERVICE AGREEMENT WITH HUTCHINSON
HEALTH CARE
WHEREAS, the Hutchinson City Attorney office has acted as general legal counsel for Hutchinson Area
Health Care for the past several years; and,
WHEREAS, the Hutchinson City Attorney office is familiar with the operations and staff of Hutchinson
Area Health Care; and,
WHEREAS, as the successor to Hutchinson Area Health Care, Hutchinson Health Care will employ
substantially the same operations and staff; and
WHEREAS, Hutchinson Health Care desires to employ, and is willing to pay for, the services of the
Hutchinson City Attorney,
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON,
THAT THE ATTORNEY SERVICE AGREEMENT ATTACHED AS EXHIBIT A TO THIS ORDINANCE
IS HEREBY ADOPTED BY THE CITY COUNCIL AND THAT THIS ORDINANCE SHALL BE
EFFECTIVE UPON PUBLICATION.
Signed this
day of
,2007,
Attest:
Gary D. Plotz, City Administrator
Steven W, Cook, Mayor
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ASSET VALUATION AGREEMENT
The parties to this agreement, the City of Hutchinson ("City") and Hutchinson Health
Care ("HHC"), agree that a business valuation study should be undertaken to determine the fair
market value, as of December 31, 2007, of the enterprise comprising the Health Care System as
that term is defined in Section 1.21 of that certain Lease and Agreement between the City and
HHC effective as of December 31,2007 (the "Lease").
Appraiser. The parties agree that the City, as the present owner of the assets, shall select the
person or firm that will conduct the valuation of the Health Care System.
Method. The City shall select the method after consultation from HHC.
Cooperation. The parties shall provide any and all information, financial and otherwise, to the
appraiser and will timely respond for inquiries and requests for information from the appraiser
and will direct those under its control (e.g. auditors, accountants, etc.) to provide information in
this same fashion.
Prior to the report's final issuance, the City shall share a draft with HHC. The City shall afford
HHC a reasonable opportunity (not less than 30 days) to submit any written comments to the
report, which shall be appended to the report as finally issued. The City would have their
response to any comments by HHC appended to the report as well.
Completion Date. The valuation report shall be completed no later than May 31,2008.
Cost. The parties shall split the cost of the valuation equally.
HHC
City
Signature:
By:
Its:
Signature:
By:
Its:
Draft SCMEW823
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Ordinance No. 07-0475
AN ORDINANCE APPROVING AN ASSET V ALUA TION AGREEMENT WITH HUTCHINSON
HEALTH CARE
WHEREAS, THE City of Hutchinson has enacted ordinance number 07-0475 approving a lease with
Hutchinson Health Care for certain assets in Hutchinson used for health care purposes; and,
WHEREAS, the parties to the lease agree that the value of those assets be determined in the event, ifat
sometime in the future, that those assets are transferred to a third party or are returned to the City; and,
WHEREAS, the parameters of that valuation are set forth in the attached exhibit A,
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON,
THAT THE ASSET VALUATION AGREEMENT ATTACHED AS EXHIBIT A TO THIS ORDINANCE IS
HEREBY ADOPTED BY THE CITY COUNCIL AND THAT THIS ORDINANCE SHALL BE
EFFECTIVE UPON PUBLICATION.
Signed this
day of
,2007.
Attest:
Gary D. Plotz, City Administrator
Steven W. Cook, Mayor
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HHCDRAFT
8/14/07
LEASE AND AGREEMENT
between
CITY OF HUTCHINSON
and
HUTCHINSON HEALTH CARE
Dated:
,2007
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TABLE OF CONTENTS
Article Page
Article 1. Definitions.. .............. ...... ..... ......... ........ ................... ..................................................2
1.1 Agreement. ............ ......... ..... ..... ............. ............................... ........................... ...2
1.2 Alteration ... ............ .......... ..... .... ........... ..... ......... ... ........ ..... ..................... ............2
1.3 Annual Rent.... ............................... ............... ................... ............... ....................2
1.4 Assigned Contracts.. ............. .... ............ .............. ........ ....... ............. ....................2
1.5 Assumed Liabilities ....... ......... ..... ..... ........ ... ............ ... ..... ...................... .......... ...2
1.6 Auxiliary Improvements......... .......... ...... ....................... ............ ........ ........... ...... 3
1.7 Auxiliary Land .... .... ... .................. ............... ....... .............. ..... ..... .... .....................3
1.8 Auxiliary Property. ................ ..... ......... ..... ........... ......... ......... .............................3
1.9 Birchwood Property.................. ........ ..... ...... .... ...... .......... ................... ................3
1.10 Dassel Medical Center Improvements................................................................3
1.11 Dassel Medical Center Land ..............................................................................3
1.12 Dassel Medical Center Property.........................................................................4
1.13 Effective Date. ....................................................................................................4
1.14 Event of Default..................................................................................................4
1.15 Excluded Assets......... ............... .............. ............... ................ .............................4
1.16 Excluded Liabilities ............................................................................................4
1.17 Existing Bond Documents ..................................................................................4
1.18 Existing Bonds....................................................................................................4
1.19 Hazardous Material.................. ...........................................................................4
1.20 Hazardous Materials Laws .................................................................................5
1.21 Health Care System ............................................................................................5
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1.22 Health Care System Employees .........................................................................5
1.23 Health Care System Funds .................................................................................5
1.24 Health Care Systems Operations ........................................................................5
1.25 Health Care System Personal Property...............................................................5
1.26 Health Care System Real Property.....................................................................7
1.27 Hospital Improvements ......... ........ .......... ........ .......... ...... ...... .......... ............... ....7
1.28 Hospital Land ................ ............ ......... ....................... ... .... ........ ........... ...............7
1.29 Hospital Leases. ..................... ........ ....... ......... ....... ............ ..... ............... ........ ......7
1.30 Hospital Property.. ....... ........... ....... ....... .......... ...... ................ ................ ..............7
1.31 Improvements ...... ......... .......... ....... ........... ...... ...... ......... ....... ..... ..... .... ............ ....7
1.32 Internal Revenue Code .......................................................................................7
1.33 Inventories and Supplies. ...... ..... ......... ...... ....................................... ..... .............. 7
1.34 Land....... .... ........ ........ ...... ..... ............ .......... ...... ...... .... .......... ..... ...... ..... ... ...........7
1.35 Medical Office Building Improvements.............................................................7
1.36 Medical Office Building Land............................................................................8
1.37 Medical Office Building Leases .........................................................................8
1.38 Medical Office Building Property ......................................................................8
1.39 Nursing Home Improvements ............................................................................8
1.40 Nursing Home Land ...........................................................................................8
1.41 Nursing Home Property ......................................................................................8
1.42 Operating Parameters.... ................ ........ ....... ..... .... ...................... ........... ...... ......8
1.43 Purchase Option.. ........... ....................... ........ ........ ........ ................ .......... .... ........8
1.44 Regional Eye Improvements ..............................................................................8
1.45 Regional Eye Land .............................................................................................8
1.46 Regional Eye Property...................... ..................... .... ................................... ......8
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Restore or Restoration. .......................................................................................8
Shopping Center Improvements....... ............. ................. ...... ..............................9
Shopping Center Land. ........... .............. .... ................... ..... ..... ............. ................ 9
Shopping Center Leases .....................................................................................9
Shopping Center Property ..................................................................................9
Taking. .... ........... ...... ........ .......... ........ .... ........ ........... ............ ..............................9
Tax Exempt Bonds .. ........... ....... ............. ... .... ...,....... ............ ....................... ....... 9
Term.. ...... ............ ..... ........ ... ....... ......... .... ....... ........... .......... ................................ 9
Unavoidable Delays. ........ ........ ... ........ .... ... ........ ..... ...... ...... .............. ........ ..........9
Article 2. Lease, Transfer of Health Care System.....................................................................9
2.1 Lease of Health Care Center Real Property .......................................................9
2.2 Transfer of Health Care System Personal Property.......................................... 10
Article 3. Rent; Consideration........ ...... ...... .... ..... ................ ...... ......... ...... ............ ........ ........ ...1 0
3.1 Annual Rent. ...... ..... ....... ......... ............ ..... ............... ..... ........ .......................... ...1 0
3.2 Assumed Obligations..... ......... ........ ......................... ........... ....... ............... ....... .11
3.3 Additional Costs ...................................................... ........... .... ........... ....... ....... .12
Article 4. Payment of Taxes ....................................................................................................12
Article 5. Repairs and Maintenance ........................................................................................12
Article 6. Insurance.............................. ...................... ............... ..... ...... ............ ....... ....... .... .... ..12
Property Insurance. ..... ........ ....... .............. .......... .:........... ...... .................... ....... .12
Liability Insurance. ......... ..................................... .... .......... ...... ...... ........ ........ ...13
Director/Officer Insurance.... ....... ................. .............. ......... ..................... ....... .13
Worker's Compensation ...................................................................................13
Automobile Insurance ...... ................ ................................................................13
Crime Fidelity......................................................... .................... ... ...... ...... ... ........ 13
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1.49
1.50
1.51
1.52
1.53
1.54
1.55
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6.1
6.2
6.3
6.4
6.5
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6.7 Policy Requirements ........ ....... .................. ....... ............. .... ..... .... ........ ....... ..... ...13
6.8 HHC's Insurance. .............................................................................................14
6.9 Certificate of Insurance. ...................................................................................14
Article 7. Damage To or Destruction of the Improvements ....................................................14
7.1 Notice; Restoration. ..........................................................................................14
7.2 Payment of Costs; Application of Proceeds. ....................................................14
7.3 No Abatement. ........................... ........ ........ ...... ....... .......... .............. .......... ........14
7.4 Mutual Release. ................................................................................................14
Article 8. Condemnation...... ........... ..... ........ ..... .............. ..... ........ ..... ......... .................. .......... ..15
8.1 Total Taking. ....................................................................................................15
8.2 Partial Taking. ... .............. ................... .............. ...... ...... .................. ........ ..... .....15
8.3 Determination of Partial Taking. ......................................................................15
Article 9. Alterations..... ........ .... .... ........ .......... ..... ....... ............. ... ............... ................ .... .........16
9.1 General........ ............ ........ ................. ..... ...... .......... ......................... ........ ...... .....16
9.2 Permitted Alterations ........................................................................................16
9.3 Permits. .... .......... ............ ............. ....... ............ ......................... ................. .........16
Article 10. Discharge of Liens.................................................................................................16
Article 11. Use of Health Care System Real Property ............................................................16
Article 12. Entry on Property by City......................................................................................17
Article 13. Utilities ....................... ......... ..... ............... ............... ..... ......... ..... ..... ...................... .17
Article 14. Indemnification.... ..... .... .......... ........ ...... ........ ... ... ....... ................................. ..... ..... .17
Article 15. Transfers ................................................................................ ................................17
15.1 By City ..............................................................................................................17
15.2 By HHC ....................................................... ................. ....................................18
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Article 16. Estoppel Certificates...... ..... ....... ... .... ....... ............. ................. ........... ...... ............ ...19
Article 17. Representations and Covenants of City .................................................................20
17.1 Power and Authority.........................................................................................20
17.2 Agreement Valid and Binding..........................................................................20
17.3 Tax-Exempt Bonds ...........................................................................................20
17.4 Existing Bonds. ................. ..... .................. ......... ...... ..... ...... .............. .... ....... ......20
17.5 Assigned Contracts; Consents ..........................................................................20
17.6 Cooperation.. ........ .... ......... ...... ........... ....... ..... ................ .......................... ..... ...20
17.7 Trade Secrets ...................................... ..............................................................20
17.8 Environmental Condition .................................................................................20
17.9 Employees.... ............ ................. ... .................. ............. ...... .................. ..... ........21
17.10 Future Financings .............................................................................................21
Article 18. Representations and Covenants of HHC ...............................................................21
18.1 Formation of HHC.... .......... .......... ...... ................. ... ..... .......... ....... ....... ..... ....... .21
18.2 Power and Authority........... .......... ............. .......... ........ ..... ....... ........ .... ....... ......21
18.3 Agreement Valid and Binding..........................................................................22
18.4 Nonprofit Status; Principal Office; Primary Service Area ...............................22
18 .5 Tax-Exempt Bonds.......... ... .......... ..................... ................ .............. .... ...... .... ...22
18.6 Existing Bonds.................... .......... ........... ............ .... ......... ....... .............. ........ ...23
18.7 Health Care Licenses ........................................................................................23
18.8 Medicare Certification............... ................................ ... ........... ......... ......... ...... .24
18.9 Accreditation. ............. ..... ........................ ................. .......... .................. ....... .....24
18.10 Medical Staff..... ...................... ......................................... ..... ..................... ......24
18.11 Employment Offers to Existing Employees; Certain Liabilities ......................24
18.12 Operating Expenses and Taxes.........................................................................25
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18.13 Reporting Requirements.. ....... ...... ........ ...... ............. ......... ...... .... ............. .........25
18.14 Indigent Care .............. ........ ... .............. ......... ..... ............. .......................... ....... .25
18.15 Operating Parameters. ..... ...... ...... .............. ........ ............... ......... ...................... .25
18.16 Investments... ..... .............. ........ ...... ................. .................. ........ .................... ....26
Article 19. Condition of Property ............................................................................................26
Article 20. Events of Default; Termination .............................................................................26
20.1 Events of Default. .............................................................................................26
20.2 Repossession. ..... .... .......... ........ ......... ........ ................ .... ...... .................... .... ......27
20.3 Continued Liability........ ......... .... ........ ..... .......... .......... ............. ................ ....... .27
20.4 Re-Ietting .. ....... ............. ........ ........ .... ...... ........... ............. ....... ......... ........ ....... ...27
20.5 No Waiver. .... .... .... ...... .................. ... ..... ......... .... ................... .............. .... ....... ...27
20.6 Exercise of Rights While in Default.................................................................28
Article 21. Surrender of the Property ......................................................................................28
21.1 Surrender of Health Care System Real Property..............................................28
21.2 Disposition of Health Care System ..................................................................28
Article 22. No Merger of Title................................ ............. ...... .......... .... ......... ..................... ..28
Article 23. Quiet Enjoyment. ..... ... .......... ............ ...... ................ ........ ............. ............ ...... ....... .29
Article 24. Notices .................. ...................... .................. ............... ........ ... ....... ....................... .29
Article 25. Contests .................. ...................... ...... ................................. ................ ............... ...30
25.1 Contest.... ............... .......... ........... ......................... ........ ........................ ...... .......30
25.2 Suspension of Obligation............. ... ........................................ ....................... ..30
25.3 Procedure ............... ......................... .... ..... ........ ................. ........................ ........30
Article 26. Purchase Option...... ................................................. .......... ......... ...........................30
26.1 Grant... ................ ........................... ..... .................. ........................ ....................30
. 26.2 Title.............. ............... ....................................................... .... ...........................31
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26.3 Closing.. ......... ......... ...... ................. ........ ........ ....... ......... ................. ............... ...31
26.4 Effect of Non-Exercise .....................................................................................31
Article 27. Miscellaneous...... ......... ........................ ..... ............................ .... ... ....... ..... ............. 31
27.1 Consent ......... ....... ....... ... .......... ...... ........ ........... ........ .... ..... ..........................:....31
27.2 Relationship of Parties.... ...... ......... ...... ......... ............ ......... ............. ................. .32
27.3 Miscellaneous. ....... ..... .... ..... .......... ...... ..... ............ .... ....... ............... ..................32
27.4 Recording...... ...... ........... ....... ......... .................. ................ ..... .......... ..... ........ ..... 32
27.5 Non-Delegation and Lack of Control...............................................................32
Exhibit A - Legal Description of the Land
Exhibit B - Excluded Assets
Exhibit C - Motor Vehicles
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LEASE AND AGREEMENT
This Lease and Agreement is made and entered into as of the _ day of
, 2007, by and between the City of Hutchinson, a Minnesota municipal
corporation ("City"), and Hutchinson Health Care, a Minnesota nonprofit corporation
("HHC").
RECITALS
WHEREAS, City owns the Hospital Property, the Nursing Home Property, the
Medical Office Building Property, the Shopping Center Property, the Dassel Medical Center
Property, the Regional Eye Property, and the Auxiliary Property, each as hereinafter defined.
WHEREAS, the Hospital Property, the Nursing Home Property, the Medical Office
Building Property, the Shopping Center Property, the Dassel Medical Center Property, the
Regional Eye Property, and the Auxiliary Property (collectively, the "Health Care System
Real Property") are operated by City as elements of a coordinated Health Care System, as
hereinafter defined.
WHEREAS, City has determined that it is in the best interest of the delivery of health
care to residents of the City of Hutchinson and the community served by the Health Care
System to lease and transfer the operation and assets of the Health Care System to a private,
nonprofit, non"governmental corporation.
WHEREAS, HHC is a nonprofit corporation organized under the laws of the State of
Minnesota for the purpose of acquiring and operating the Health Care System.
WHEREAS, City has the statutory power and authority, pursuant to Minnesota
Statutes ~~ 144.581 and 447.47, to lease and transfer the Health Care System to HHC.
WHEREAS, HHC has the power and authority to accept the lease and transfer of such
assets and operations from City under the terms and conditions set forth herein.
WHEREAS, City has concluded, following many months of analysis, public input
and consultation with health care experts, that the lease of the Health Care System is likely
to: (i) enhance operating efficiencies and effectiveness, (ii) enhance the Health Care
System's ability to form linkages with other health care institutions and providers to form an
integrated delivery system offering an increased continuum of care to the residents of City,
(iii) improve the environment for physician and allied health professional recruitment and
retention, and (iv) promote the Health Care System's ability to maintain financial viability
and adaptability to future changes and challenges in the health care environment, especially
those posed by state and national health care reform.
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WHEREAS, City has concluded that the community served by the Health Care
System will be best served by undertaking transactions described in this Agreement.
WHEREAS, City and HHC intend for HHC to operate the Health Care System in a
private, non-governmental capacity, not subject to any of the laws of the State of Minnesota
or of the federal government that apply exclusively to governmental bodies or
instrumentalities thereof.
WHEREAS, HHC intends to operate the Health Care System in a manner consistent
with its charitable purposes, including, but not limited to enhancing the health of people in
the communities it serves without expectation of financial gain.
NOW, THEREFORE, in consideration of the premises, covenants and agreements set
forth herein, the parties hereto agree as follows:
Article 1.
Definitions
The following terms shall have the meanings set forth in this Article:
1.1 Agreement. This Lease and Agreement, including the following exhibits
attached hereto and made a part hereof:
Exhibit A - Legal Description of the Land
Exhibit B - Excluded Assets
Exhibit C - Motor Vehicles
1.2 Alteration. Construction, reconstruction, replacement, repairs, renewals,
alterations, changes, additions, improvements and demolitions of or to the Improvements and
all excavations at any time made or to be made in, or on about the Land, or any part thereof.
].3 Annual Rent. The Annual Rent at the per annum rate provided for in Section
3.1 of this Agreement.
1.4 Assigned Contracts. All service and maintenance contracts, commitments,
guarantees, indentures, insurance policies and contracts, leases and other contracts regarding
the Health Care System Real Property and the Health Care System Operations, but excluding
any contracts that are part of the Excluded Assets.
].5 Assumed Liabilities. All of the following debts, obligations, accounts payable,
claims and other liabilities of City (excluding, in each case, any Excluded Liabilities):
(a) All payment obligations, other obligations and liabilities arising under
the Assigned Contracts;
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(b) Any materialmen, mechanics or other liens against the Health Care
System Real Property;
(c) All employee liabilities arising from Health Care System Operations,
including but not limited to any costs, settlement amounts, insurance deductibles and
other expenses associated with any employment-related legal claims brought by City
employees arising from the termination of their employment for Health Care System
Operations;
(d) Any fines, penalties or other payments, or repayments, required to be
made to any governmental entity in connection with Health Care System Operations
prior to the Effective Date;
(e) Claims relating to generation, manufacture, storage or release of
Hazardous Materials on or about the Health Care System Real Property or with
respect to the Health Care System Operations; and
(f) All other liabilities and obligations of City, whether known or
unknown, contingent or otherwise, incurred or arising in connection with Health Care
System Operations prior to the Effective Date.
1.6 Auxiliarv Improvements. The building, fixtures and other improvements now
or hereafter located on the Auxiliary Land and all alterations and additions thereto and
replacements thereof, including by reason of Restoration.
1.7 Auxiliarv Land. The land, but not any Improvements, situated in McLeod
County, Minnesota, and legally described on Exhibit A attached hereto, together with all
easements, appurtenances and hereditaments pertaining thereto.
1.8 Auxiliarv Propertv. The Auxiliary Land and the Auxiliary Improvements,
collectively.
1.9 Birchwood Propertv. The land and improvements at 710 Park Island Drive
SW, Hutchinson, Minnesota.
1.10 Dassel Medical Center Improvements. The building, fixtures and other
improvements now or hereafter located on the Dassel Medical Center Land and all
alterations and additions thereto and replacements thereof, including by reason of
Restoration.
1.11 Dassel Medical Center Land. The land, but not any Improvements, situated in
Meeker County, Minnesota, and legally described on Exhibit A attached hereto, together
with all easements, appurtenances and hereditaments pertaining thereto.
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1.12 Dassel Medical Center Propertv. The Dassel Medical Center Land the Dassel
Medical Center Improvements, collectively.
1.13 Effective Date. December 31, 2007.
1.14 Event of Default. As defined in Section 20.1 of this Agreement.
1.15 Excluded Assets. Those assets owned by City as of the Effective Date which
shall be and remain the assets of City and not leased or transferred to HHC pursuant to this
Agreement, as such assets are more specifically identified on the attached Exhibit B.
1.16 Excluded Liabilities. Any and all debts, obligations, claims, and other
liabilities of City:
(a) to the extent such debts, obligations, claims or other liabilities of City
are covered by an existing insurance policy maintained by City;
(b) to the extent that the assumption of which by HHC would eliminate or
limit the governmental immunity which would otherwise be available in regard to
such debt, obligation, claim or other liability (and nothing herein shall grant to any
person not a party hereto any right to payment or indemnification for any event
occurring prior to the Effective Date which would not have existed had City not
entered into the transactions contemplated hereby);
(c) which results from any act or omission of City (or any of its elected
officials, employees, contractors, or agents) acting in, or in furtherance of, City's
governmental function, and not in connection with, or in furtherance of, the Health
Care System or Health Care System Operations; or
(d) which results from a breach of this Agreement by City or the existence
of which constitutes a misrepresentation by City under this Agreement.
1.17 Existing Bond Documents. All documents, instruments and agreements
executed and delivered in connection with the issuance of the Existing Bonds.
1.18 Existing Bonds. The following bonds issued by City: General Obligation
Medical Facilities Revenue Refunding Bonds, Series 1997B; General Obligation Medical
Facilities Revenue Refunding Bonds, Series 1998A; General Obligation Taxable Medical
Facilities Revenue Refunding Bonds, Series 1998B; Taxable Medical Facilities Gross
Revenue Bonds, Series 1998; General Obligation Medical Facilities Revenue Bonds, Series
2002D; and General Obligation Medical Facilities Revenue Bonds, Series 2003A.
1.19 Hazardous Material. Any substance, chemical, waste or material that is or
becomes regulated under applicable law because of its toxicity, infectiousness, radioactivity,
explosiveness, ignitability, corrosiveness or reactivity, including asbestos, urea
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formaldehyde, polychlorinated biphenyls, nuclear fuel or materials, radioactive materials,
explosives, known carcinogens, petroleum products and by-products and any substance,
chemical, waste or material regulated by any Hazardous Material Law.
1.20 Hazardous Materials Laws. Each federal, state, county, municipal, local or
other law, statute, code, ordinance, rule or regulation which relates to or deals with human
health or the environment in the jurisdiction in which the Health Care System, or any part
thereof, is located.
1.21 Health Care System. The Health Care System Real Property, the Health Care
System Personal Property, and all other real or personal property purchased, leased or
otherwise acquired by HHC (or by City, with respect to any real property acquired by City
for the use of HHC and inclusion with the Health Care System Real Property) on or after the
Effective Date, together with the operations, infrastructure, systems, processes, assembled
work force and other intangibles necessary for the conduct of a healthcare delivery system of
the scope and nature as that operated by City prior to the Effective Date.
1.22 Health Care System Employees. All full and part time employees of the
Health Care System as of the Effective Date.
1.23 Health Care Svstem Funds. All of City's right, title and interest in or to all
cash, bank accounts, savings and loan accounts, certificates of deposit, money market
accounts, treasury bills, investments (whether debt or equity, liquid or illiquid), reserves or
other cash items held in the name of, or on behalf of, City in connection with Health Care
System Operations.
1.24 Health Care Svstems Operations. The operation of the Health Care System,
including operation of its various components as an acute care hospital, a surgical center, a
skilled nursing facility, a medical office building, an outpatient clinic, and administrative
facilities.
1.25 Health Care Svstem Personal Property. All right, title and interest of City in
and to the following property (excluding, in each case, the Excluded Property):
(a) All machinery, furniture and equipment, including hospital, medical
and office equipment, and other fixed assets owned by City and used in connection
with the operation of the Health Care System Real Property, or any part thereof;
(b) All motor vehicles owned by City and used in connection with the
operation ofthe Health Care System Real Property, including without limitation the
motor vehicles listed on the attached Exhibit C;
(c) All trademarks, servicemarks and names owned by City and used in
connection with the operation of the Health Care System Real Property, Health Care
System Operations, or any part or combination thereof;
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(d) All accounts receivable and other amounts owed to City or its health
care operating units and arising out of the use, operation or ownership of the Health
Care System Real Property or arising from Health Care System Operations;
(e) The benefit, but not outright ownership, of the gifts, bequests,
donations or other endowments specifically given for the benefit of or restricted to'the
use of the Health Care System Real Property, Health Care System Operations, or any
part or combination thereof;
(f) All rights under the Assigned Contracts, including all rights to receive
goods or services, to use and occupy personal and leased real property or to receive
payment for goods or services rendered, or other benefits arising under such
contracts;
(g) All Inventories and Supplies;
(h) All trade secrets and other confidential information concerning Health
Care System Operations not in the public domain and in existence on the Effective
Date;
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(i) All medical records of Health Care System patients in existence on the
Effective Date;
(j) All business records arising from the use of the Health Care System
Real Property or Health Care System Operations in existence on the Effective Date;
(k) All Health Care System Funds;
(I) Any prepaid expenses arising from the operation or use of the Health
Care System Real Property or from Health Care System Operations in existence on
the Effective Date;
(m) any and all shares, member interests, partnership interests, member
control agreements or other interests held by City in any joint venture, partnership,
limited liability company, corporation, or other entity or organization formed in
relation to, in support of, or otherwise in connection with the Health Care System
Real Property or Health Care System Operations, including, without limitation, City's
interests in the joint ventures known as ConnectCare operating from the Birchwood
Property and Hutchinson Diagnostic Center;
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(n) The right to any and all recovery from all collection cases in progress
on the Effective Date for goods furnished or services rendered in connection with
Health Care System Operations;
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and all of such other assets owned by City in connection with the operation of the Health
Care System Real Property, other than the Excluded Assets, as of the Effective Date.
Further, for purposes of this Agreement, the term "Health Care System Personal Property"
shall (i) include all additions, alterations, changes, and substitutions in and to all or any part
of the Health Care System Personal Property made after the Effective Date, and (ii) exclude
all Health Care System Personal Property transferred or sold in accordance with Article 15
hereof on or after the Effective Date.
1.26 Health Care System Real Property. As defined in the Recitals hereof.
1.27 Hospital Improvements. The building, fixtures and other improvements now
or hereafter located on the Hospital Land and all alterations and additions thereto and
replacements thereof, including by reason of Restoration.
1.28 Hospital Land. The land, but not any Improvements, situated in McLeod
County, Minnesota and legally described on Exhibit A attached hereto, together with all
easements, appurtenances and hereditaments pertaining thereto.
1.29 Hospital Leases. Any and all tenant leases with respect to the Hospital Land
or Hospital Improvements in effect on the Effective Date.
1.30 Hospital Property. The Hospital Land, the Hospital Improvements, and the
Hospital Leases, collectively.
1.31 Improvements. The Hospital Improvements, the Medical Office Building
Improvements, the Nursing Home Improvements, the Shopping Center Improvements, the
Dassel Medical Center Improvements, the Regional Eye Improvements, and the Auxiliary
Improvements, collectively.
1.32 Internal Revenue Code. The Internal Revenue Code of 1986, as amended, and
any replacement or successor code.
1.33 Inventories and Supplies. All items of consumable personal property owned
by City or held by City in connection with the Health Care System Operations.
1.34 Land. The Hospital Land, the Nursing Home Land, the Medical Office
Building Land, the Shopping Center Land, the Dassel Medical Center Land, the Regional
Eye Land, and the Auxiliary Land, collectively.
1.35 Medical Office Building Improvements. The building, fixtures and other
improvements now or hereafter located on the Medical Office Building Land and all
alterations and additions thereto and replacements thereof, including by reason of
Restoration.
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1.36 Medical Office Building Land. The land, but not any Improvements, situated
in McLeod County, Minnesota and legally described on Exhibit A attached hereto, together
with all easements, appurtenances and hereditaments pertaining thereto.
1.37 Medical Office Building Leases. Any and all tenant leases with respect to the
Medical Office Building Land or Medical Office Building Improvements in effect as of the
Effective Date.
1.38 Medical Office Building Propertv. The Medical Office Building Land, the
Medical Office Building Improvements, and the Medical Office Building Leases,
collectively.
1.39 Nursing Home Improvements. The building, fixtures and other improvements
now or hereafter located on the Nursing Home Land and all alterations and additions thereto
and replacements thereof, including by reason of Restoration.
1.40 Nursing Home Land. The land, but not any Improvements, situated in
McLeod County, Minnesota and legally described on Exhibit A attached hereto, together
with all easements, appurtenances and hereditaments pertaining thereto.
1.41 Nursing Home Propertv. The Nursing Home Land and the Nursing Home
Improvements, collectively.
. 1.42 Operating Parameters. The financial, quality and operating parameters set
forth in Exhibit A to the Bylaws of HHC, as amended from time totime.
1.43 Purchase Option. HHC's right to purchase City's interest in the Health Care
System Real Property in accordance with Article 26.
1.44 Regional Eve Improvements. The building, fixtures and other improvements
now or hereafter located on the Regional Eye Land and all alterations and additions thereto
and replacements thereof, including by reason of Restoration.
1.45 Regional Eve Land. The land, but not any Improvements, situated in McLeod
County, Minnesota, and legally described on Exhibit A attached hereto, together with all
easements, appurtenances and hereditaments pertaining thereto.
1.46 Regional Eye Property. The Regional Eye Land and the Regional Eye
Improvements, collectively.
1.47 Restore or Restoration. The repair, restoration or rebuilding of the Health
Care System or any part thereof following any Taking, damage to or destruction of the same
by fire or other casualty, in accordance with applicable legal requirements, with such
Alterations as may be determined by HHC, together with any temporary repairs and property
protection pending completion of the work.
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1.48 Shopping Center Improvements. The building, fixtures and other
improvements now or hereafter located on the Shopping Center Land and all alterations and
additions thereto and replacements thereof, including by reason of Restoration.
1.49 Shopping Center Land. The land, but not any Improvements, situated in
McLeod County, Minnesota and legally described on Exhibit A attached hereto, together
with all easements, appurtenances and hereditaments pertaining thereto.
1.50 Shopping Center Leases. Any and all tenant leases with respect to the
Shopping Center Land or Shopping Center Improvements in effect as of the Effective Date.
1.51 Shopping Center Propertv. The Shopping Center Land, the Shopping Center
Improvements, and the Shopping Center Leases, collectively.
1.52 Taking. A taking of all or any part of the Health Care System Real Property,
or any interest therein or right accruing thereto, including, without limitation, any right of
access thereto existing on the date of this Agreement, as the result of or in lieu or in
anticipation of the exercise of the right of condemnation or eminent domain. The Taking
shall be deemed to occur on the date on which the condemning authority takes possession.
1.53 Tax Exempt Bonds. The following bonds issues by City; General Obligation
Medical Facilities Revenue Refunding Bonds, Series 1997B; General Obligation Medical
Facilities Revenue Refunding Bonds, Series 1998A; General Obligation Medical Facilities
Revenue Bonds, Series 2002D; and General Obligation Medical Facilities Revenue Bonds,
Series 2003A
1.54 Term. The term of this Agreement as provided in Article 2.
1.55 Unavoidable Delavs. Acts of God, casualties, war, civil commotion, embargo,
riots, strikes, unavailability of materials (but not unavailability of funds), contractor defaults
and any other events which are not within the reasonable control of the party in question to
prevent, control or correct.
Article 2.
Lease. Transfer of Health Care Svstem
2.1 Lease of Health Care Svstem Real Propertv. City does hereby demise and
lease to HHC, and HHC does hereby take and hire, upon and subject to the terms and
conditions of this Agreement, the Health Care System Real Property for a term commencing
on the Effective Date and ending thirty (30) years after the Effective Date. As long as HHC
is not in default of this Agreement and at any time prior to the commencement of the 29th
year of this Agreement HHC may notify City of its intention to renew this Agreement upon
the same terms and conditions as contained herein for one additional thirty (30) year term or
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exercise the Purchase Option described in Section 26.1 of this Agreement as of the expiration
of the initial term.
2.2 Transfer of Health Care Svstem Personal ProDertv. In consideration of the
amounts paid and to be paid by HHC pursuant to Article 3 of this Agreement, City hereby
grants, bargains, sells and conveys unto HHC all of City's right, title and interest in and to
the Health Care System Personal Property, effective as of the Effective Date.
Article 3.
Rent: Consideration
3.1 Annual Rent.
(a) For the Health Care System Real Property, the Annual Rent during the
Term shall be the following:
(1) One Hundred Sixty Thousand and nollOOths Dollars
($160,000.00) per annum for the calendar year ending on December 31, 2008,
which per annum amount shall be adjusted for calendar year 2009, and each
calendar year thereafter during the Term, to equal, in each calendar year, 105%
of theamount payable for the immediately precedingcal~Ildar ear;
verify whether the current "payment in lieu" isalsQma~'; .
basis, and jf not, whether the first year's rentorthe 11lstyi:l!.l:*)iP~
needs. to be pro-ratedtothes~b-year.]
(2) an amount equal to all principal, interest, paying agent fees,
registrar fees, bond trustee fees and expenses incurred under the terms of the
applicable bonds, and bond reserve fund payments due on, or with respect to,
the Existing Bonds and any additional Tax-Exempt Bonds or other bonds
issued pursuant to Section 17.10 of this Agreement;
(3) an amount equal to all reasonable sums, fees and expenses,
including reasonable legal fees, of City incurred in connection with the
issuance, payment, redemption and exchange of the Existing Bonds;
(4) an amount equal to all expenses, including reasonable legal fees,
incurred by City in order to enforce any obligation materially breached by
HHC under this Agreement; and
(5) an amount equal to any reasonable, direct, out-of-pocket
transaction expenses, including reasonable legal fees and consulting fees,
incurred by City in connection with any transfer, sublet, sale, assignment,
release or other transaction involving any Health Care System Real Property
under Article 15.
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(b) Commencing as of the Effective Date and continuing thereafter for the
Term, HHC covenants and agrees to pay to City the Annual Rent:
(I) in the case of that part of Annual Rent specified in
Section 3.1(a)(l), at the per annum rate set forth in Section 3.1(a)(I), payable
in two equal installments in advance on or before the 15th day of May and
October during the Term, and at that rate prorated and payable in advance for
any portion of a calendar year at the commencement or the end of the Term;
and
(2) in the case of that part of Annual Rent specified in
Section 3.1(a)(2), the amounts required from time to time due on, or on
account of, the Existing Bonds, payable at least fifteen (15) business days prior
to the date each such payment is due on, or on account of, the Existing Bonds;
(3) in the case of any other component of Annual Rent specified in
Section 3.1, payable in the ordinary course of business following receipt of an
invoice from City or copies of applicable vendor invoices, but in any event not
more than sixty (60) days following receipt by HHC of such invoices, and
.
(4) on the Effective Date of the Lease, deposit by HHC of funds
into an escrow account in accordance with the Escrow Agreement attached as
Exhibit D, which City may draw upon in the event monthly rent payments
made to City on the payment due dates for the Existing Bonds are insufficient
to make the full payment required.
In the event of an early termination of this Agreement for any cause other than HHC's
default, any Annual Rent paid in advance shall be prorated as of the date of such
termination with the portion properly allocated to the period following termination
refunded to HHC upon such termination.
(c) All Annual Rent shall be paid by HHC to City at the address of City set
forth in Section 24, or to such other address as City may direct by written notice to
HHC.
(d) It is the purpose and intent of City and HHC that the Annual Rent shall
be net to City and that HHC shall pay Annual Rent and other amounts payable by
HHC under this Agreement without notice or demand and without abatement,
deduction or setoff, except as otherwise provided in this Agreement.
3.2 Assumed Obligations. In consideration of the leases and transfers made by
City to HHC pursuant to Article 2 hereof, HHC hereby agrees (a) to assume, pay, and
perform the Assumed Liabilities, effective as of the Effective Date, and (b) to operate the
Health Care System in accordance with the covenants set forth in this Agreement, including,
without limitation, the covenants set forth in Article 18 hereof. HHC shall pay, or otherwise
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cause to be satisfied or discharged, all Assumed Liabilities when due under their terms.
HHC may, at its expense and in its own name and behalf, or, to the extent lawful, in the
name and behalf of City, in good faith, contest the payment of any such Assumed Liabilities
and, in the event of any such contest, permit any such Assumed Liabilities to remain unpaid
during the period of such contest and any appeal therefrom. City will cooperate fully with
HHC, at HHC's expense, in any such contest. City shall continue to be responsible for the
Excluded Liabilities, except as specifically provided herein.
3.3 Additional Costs. On or before the Effective Date, HHC shall pay City's
reasonable, direct, out-of-pocket transaction expenses, including reasonable legal fees and
consulting fees incurred by City in connection with the transactions contemplated by this
Agreement.
Article 4.
Payment of Taxes
City and HHC anticipate that some or all of the Health Care System Real Property is
or will be exempt from real estate taxation. However, if and to the extent that real estate
taxes or installments of special assessments became due and payable with respect to the
Health Care System Real Property during the Term, HHC agrees to pay all such amounts,
prorated for any period before or after the Term. City and HHC agree that HHC's agreement
to pay all applicable real estate taxes and special assessments does not constitute a waiver of
any exemption from said taxes or assessments to which the Health Care System Real
Property or HHC may be entitled.
Article 5.
Repairs and Maintenance
Throughout the Term, HHC, at its sole cost and expense, shall take good care of the
Health Care System Real Property, and shall at all times keep the same in good order and
condition, ordinary wear and tear excepted, and make all necessary repairs thereto, interior
and exterior, structural and non-structural. All repairs by HHC shall be effected with due
diligence and in a workmanlike manner in compliance with all legal requirements and shall
be fully paid for by HHC.
Article 6.
Insurance
6.1 Property Insurance. HHC, at its cost, shall procure and maintain or cause to be
procured and maintained during the Term a so called "all-risk" property insurance policy
including the perils associated with mechanical breakdown (boiler and machinery) insuring
the full replacement cost of the Improvements exclusive of excavations, footings, and
foundation below the lowest floor level. The property policy shall also provide "all risk"
coverage insuring at full replacement cost values for the improvements & betterments and
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personal property. Such insurance shall name City and HHC as insureds as their interest may
appear.
6.2 Liabilitv Insurance. HHC, at its cost, shall procure and maintain or cause to be
procured and maintained during the Term commercial general public liability and
professional liability insurance against claims of bodily injury, death, personal injury or
property damage occurring on, in or about the Property, with a combined single limit of not
less than $2,000,000 each claim/occurrence and an aggregate limit of not less than
$4,000,000, naming City as an additional insured.
6.3 Director/Officer Insurance. HHC, at its cost, shall procure and maintain or
cause to be procured and maintained during the Term, insurance or self-insurance with a
minimum limit of $2,000,000 each claim/aggregate against all such liabilities and in such
amounts as are required and procurable to reasonably protect the directors, officers and
employees of HHC from claim of liability in connection with the management, operation,
administration and maintenance of the Health Care System and the selection and supervision
of its employees, volunteers and medical staff.
6.4 Worker's Compensation. HHC, at its cost, shall procure and maintain or cause
to be procured and maintained during the Term, workers compensation insurance or self-
insurance in accordance with applicable Minnesota Statutes.
6.5 Automobile Insurance. HHC, at its cost, shall procure and maintain or cause
to be procured and maintained during the Term, automobile insurance with a minimum
liability limit of $2,000,000 naming the City as an additional insured. Such coverage shall
extend to all owned, hired and non-owned automobiles.
6.6 Crime Fidelitv. HHC, at its cost, shall procure and maintain or cause to be
procured and maintained during the Term, Employee Dishonesty and Depositors Forgery
coverage with minimum limits of $500,000.
6.7 Policy Requirements. Employer's Liability, Commercial General Liability,
Professional Liability and Automobile Liability may be arranged under single policies for the
full minimum limits required, or by a combination of underlying policies with the balance
provided by an Excess or Umbrella Liability policy. All insurance provided for in this
Article 6 shall:
(a) be issued by insurance companies carrying an A M Best policyholder
rating of at least A- and a financial size rating of at least VIII or subject to acceptance
by the City, or be provided under a plan of self-insurance;
(b) provide that policies of insurance may not be changed or canceled
without at least 30 days (or 10 days, in the case of non-payment of premium) written
notice of cancellation to the City and HHC; and
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(c) provide that, in the case of the property insurance required by Section
6.1, losses shall be adjusted with the insurers and/or underwriters by City and HHC,
unless HHC Restores the Improvement, in which event HHC shall be authorized
exclusively to adjust the loss and receive the proceeds to pay for Restoration as
Restoration progresses in accordance with this Agreement.
6.8 HHC's Insurance. Proceeds' of any insurance carried by HHC on the Health
Care System Personal Property shall be payable directly to HHC and HHC shall have the
exclusive right to adjust and settle losses with respect thereto.
6.9 Certificate of Insurance. On or before the Effective Date and thereafter prior
to expiration of the term of any expiring policy, HHC shall provide to City original
certificates from the issuing insurance companies evidencing that the policies required to be
carried by HHC are in full force and effect.
Article 7.
Damage To or Destruction of the Imorovements
7.1 Notice; Restoration. In case of any material damage to or destruction of any
part of the Improvements, HHC shall give notice thereof to City and HHC shall promptly and
with all diligence at HHC's expense, commence and complete Restoration of such portion of
the Improvements so damaged or destroyed. Unless City otherwise consents, any
replacement building(s) to be constructed shall be of a quality not less than the quality of the
Improvement, as the same existed immediately prior to such damage or destruction.
.
7.2 Pavment of Costs; Aoplication of Proceeds. The costs of any Restoration
performed by HHC in accordance with Section 7.1 shall be paid by HHC, and any insurance
proceeds that are received by it in accordance with subsection 6.6(c) on account of any
damage to or destruction of the Improvements or any part thereof shall be used for that
purpose. Any insurance proceeds remaining following the payment of all costs of
Restoration shall be retained by HHC, for its use in the operation of the Health Care System,
and otherwise for its use in a manner consistent with its mission and purpose.
7.3 No Abatement. There shall be no abatement of Annual Rent in the event of
any damage or destruction to all or any part of the Health Care System.
7.4 Mutual Release. Notwithstanding any other provision of this Agreement, each
party hereby releases the other (and each party for which such other may be responsible) of
liability for any damage to the Improvements and the Health Care System Personal Property
which is coverable by the insurance described in Section 6.1 above (or which could be
covered by such insurance ifHHC were to carry insurance on the Health Care System
Personal Property), whether or not such damage is caused by the negligence or other fault of
the party so released or any party for which it may be responsible.
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Article 8.
Condemnation
8.1 Total Taking. In the event of a Taking of the whole or substantially all of the
Health Care System Real Property, this Agreement shall terminate on the date of such
Taking, and the Annual Rent and all other sums and charges required to be paid by HHC
hereunder shall be apportioned and paid to the date of such Taking. In the event of any such
Taking and notwithstanding the termination of this Agreement, and provided City is not the
party which commenced the Taking, City and HHC shall together make one claim for an
award for their combined interests and the net award received shall be allocated between City
and HHC on the basis of their respective interests therein, including in the case of City the
value of its reversion interest in the Health Care System Real Property and, in the case of
HHC, the bargain value, if any, of its leasehold estate computed as though the Agreement
had not been terminated, and damages sustained as a result of termination of the Agreement
prior to the end of the Term. In addition, HHC shall be entitled to any award made in respect
of or allocable to the Health Care System Personal Property and for moving, relocation and
other statutory benefits.
8.2 Partial Taking. In the event of a Taking of less than substantially all of the
Health Care System Real Property, this Agreement shall continue in full force and effect, and
HHC shall at HHC's expense with reasonable diligence (subject to Unavoidable Delays)
commence and complete Restoration, except to the extent made unfeasible by any reduction
in area of the Land or Improvement caused by such Taking. All awards made in respect of
or allocable to the Health Care System Real Property shall be distributed as follows and in
the following order:
(a) For the purpose of Restoration, in accordance Section 7.2, including the
last sentence thereof, as if the same were insurance proceeds; and
(b) HHC shall receive the balance of the award, for its use in the operation
of the Health Care System, and otherwise for its use in a manner consistent with its
mission and purpose.
(c) In the event of a Partial Taking, City shall, to the extent there are
available condemnation proceeds therefor, make a good faith effort to acquire such
adjacent land in lieu of that taken as may be needed for restoration of the Property and
requested in writing by HHC.
8.3 Determination of Partial Taking. As used herein, a Taking of substantially all
of the Health Care System Real Property shall mean a Taking of such portion as renders it in
HHC's good faith business judgment uneconomical or unfeasible to operate the Health Care
System Real Property for the purpose for which the Health Care System Real Property was
operated prior to such Taking.
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Article 9.
Alterations
9.1 General. HHC shall have the right from time to time during the Term to make,
at its expense, Alterations in or to the Improvements, subject in all cases to the further
provisions of this Article 9 and to all other applicable provisions of this Agreement.
9.2 Permitted Alterations. Subject to any applicable provisions of this Agreement,
HHC shall have the right at any time during the Term to make such reasonable changes in
and additions and alterations, structural or otherwise, to the Health Care System Real
Property as HHC shall deem necessary or desirable for its operation of the Health Care
System, provided that:
(a) the work is performed in a good and workmanlike manner and in
accordance with all applicable laws, ordinances, rules and regulations; and
(b) no change, alteration, modification, or addition shall at any time be
made that shall impair the structural soundness or diminish the value of any
improvement.
9.3 Permits. Before any Alterations are begun, HHC shall procure, at its expense,
all necessary licenses, permits, approvals and authorizations from all governmental
authorities and shall, on demand, deliver photocopies thereof to City. Upon HHC's request,
City shall join in the application for such licenses, permits, approvals and authorizations
whenever such action is necessary. All Alterations shall be made and completed in
accordance with all legal requirements.
Article 10.
Discharge of Liens
Each of City and HHC agrees not to create, and shall discharge, liens or notices of
claims of liens of mechanics and materialmen for work or materials contracted to be supplied
to the Health Care System Real Property by City or HHC, respectively, subject to contest by
HHC in accordance with Article 25.
Article 11.
Use of Health Care System Real Property
HHC may use and occupy the Health Care System Real Property for Health Care
System Operations, and any other lawful purposes, subject to the requirements ofHHC's
Articles ofIncorporation and Bylaws and the Existing Bond Documents.
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Article 12.
Entrv on Property bv City
HHC shall. permit City and its authorized representatives to enter the Health Care
System Real Property at all reasonable times for the purpose of inspecting the same, and
showing the same to prospective purchasers and (during the last six (6) months of the Term
only) tenants.
Article 13.
Utilities
HHC shall pay all charges for the use at the Health Care System Real Property of
water, sewer, electricity, heating, air conditioning and all other utilities consumed during the
Term.
Article 14.
Indemnification
Subject to Section 7.4, HHC shall defend, indemnify and save City harmless from and
against all liabilities, claims, judgments, costs and expenses, including, but not limited to,
reasonable attorneys' fees, to the extent arising by reason of or relating to the Health Care
System, Health Care System Operations, or Health Care System Employees, whether known
or unknown, whether arising before or after the Effective Date, excluding, in each case, all
liabilities, claims, judgments, costs and expenses that constitute Excluded Liabilities.
Article 15.
Transfers
15.1 Bv Citv. The City agrees as follows with respect to its interest in the Health
Care System Real Property;
(a) City agrees not to transfer, mortgage, pledge, lease, or encumber all or
any part of its interest in the Health Care Center Real Property or its rights under this
Agreement, except with the prior written consent ofHHC.
(b) If, in the ordinary course of business and in a fair market value
transaction, HHC proposes to sell or transfer a portion or portions constituting less
than all or substantially all of the Health Care System Real Property in accordance
with Section 15.2(c), City agrees, following sixty (60) days prior notice by HHC, to
cooperate with such sale or transfer, including by executing and delivering such
reasonable and customary agreements and instruments as may be necessary or
desirable (i) to release from this Agreement that part of the Health Care System Real
Property proposed to be sold or transferred by HHC; (ii) to transfer and convey the
interest of City in that portion of the Health Care System Real Property proposed to
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be sold or transferred by HHC, and (iii) to permit application of any net proceeds of
sale Of tfansfer in accordance with Section 15.2(c). Notwithstanding the foregoing, if
during the sixty day notice period, the City notifies HHC that the City wishes that the
subject property be released from the Lease and returned to City control, City and
HHC will cooperate to accomplish that result provided that HHC shall receive from
the City at the time of the release an amount equal to the net proceeds anticipated by
HHCfrom the transaction referenced in the initial notice to the City, such that HHC
continues to have resources equivalent to the released property available for the
mission and purposes of the Health Care System.
15.2 Bv HHC. HHC and City agree as follows with respect to HHC's interest in
the Health Care System Real Property:
(a) HHC's interest in the Health Care System Real Property may, in the
ordinary course of its business, be sublet, in whole or in part, provided that:
(I) no such sublease shall extend beyond the Term; and
(2) no such sublease shall be inconsistent with HHC's mission; and
(3) any such sublease shall not involve in excess of thirty percent of
the square footage of the Hospital Property, without the written consent of
City. (The parties intend that HHC be the primary accountable party for
delivery of healthcare services in and around the City of Hutchinson and have
chosen the thirty percent limit as a measure aimed at insuring the continuing
primary role ofHHC.)
City agrees to execute a reasonable non-disturbance agreement (which includes
provisions by which the subtenant agrees to recognize City as its direct landlord, and
City agrees to recognize the subtenant as its direct tenant, following any early
termination of this Agreement) as may be requested by the subtenant under any such
sublease.
(b) HHC's interest in the Health Care System Real Property, in the
ordinary course of its business, be assigned, provided that:
(I) no such assignment shall extend beyond the Term; and
(2) no such assignment shall be inconsistent with HHC's mission;
and
(3) any such assignments in the aggregate shall not involve in
excess of thirty percent of the square footage of the Hospital
Property, without the written consent of City.
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(c) If from time to time HHC determines that any portion of the Health
Care System Real Property is no longer essential to Health Care System or its
mission, HHC may release such portion of the Health Care System Real Property
from this Agreement (returning control of such Real Property to City). Any net
proceeds resulting from a sale or transfer allowed under Sections 15.1 may be used to
further the mission and purposes of the Health Care System, but only after any net
proceeds are applied in accordance with the provisions of the Existing Bond
Documents. Upon the closing of any sale or transfer of any portion of the Health
Care System Real Property pursuant to this Section, such portion shall cease to be a
part of the Health Care System Real Property under this Agreement.
(d) HHC's interest in the Health Care System Personal Property may, in
the ordinary course of its business, be transferred or sold.
(e) HHC shall have the right to mortgage, pledge, or otherwise encumber
as collateral or security for debt held by an institutional lender or bond trustee all or
any part of its interest in the Health Care System in the ordinary course of business
financing transactions, provided that the proceeds of such transactions are used to
support Health Care Systems Operations, and provided further that no right, title or
interest of City shall be encumbered thereby. City agrees to cooperate reasonably
with HHC in connection with any such financing, including the signing of such
additional documents as may be required to obtain such financing.
.
(f) HHC shall not assign, sublet or otherwise transfer its rights and
obligations under this Agreement, except as permitted under Section 15.1 and 15.2,
without the consent of City.
Article 16.
Estoppel Certificates
Each party hereto agrees from time to time, upon not less than twenty (20) days' prior
notice from the other, to execute, acknowledge and deliver, without charge, to the other or its
designee, a statement in writing, certifying that this Agreement is unmodified and in full
force and effect (or if there have been modifications, identifying the same by the date thereof
and specifying the nature thereof), the dates to which the Annual Rent and other sums and
charges payable hereunder have been paid, the amount of the Annual Rent, that to its actual
knowledge there are no claims against the other hereunder (or ifthere are any such claims,
specifying the same) and that to its actual knowledge the other party is not in default and
there exists no circumstance which with the giving of notice or lapse of time, or both, would
constitute a default (or if such party is aware of any such default or circumstance specifying
the same).
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Article 17.
Representations and Covenants of Citv
17.1 Power and Authoritv. City has the power and authority to execute and deliver
this Agreement, and to carry out the transactions contemplated herein. The Hutchinson City
Council, acting on behalf of City in connection with this Agreement, is the properly
appointed, acting and duly authorized governing body of City, and is acting in accordance
with the provisions of all applicable laws and regulations.
17.2 Agreement Valid and Binding. The Agreement is duly executed and delivered
and is a valid and legally binding obligation of City enforceable in accordance with its terms.
The execution and delivery of this Agreement does not, and the consummation of the
transactions contemplated hereby will not, result in the creation of any lien, charge or
encumbrance or the acceleration of any indebtedness or other obligation of City, and are not
prohibited by, in violation of or in conflict with any provisions of, and will not result in a
default under or a breach of (i) any constitutional provision affecting City; (ii) any ordinance,
law or regulation; or (iii) any order, decree or judgment or any court of governmental agency
to which City or the Health Care System is a party or is bound.
17.3 Tax-Exempt Bonds. City has not, by act or omission, caused any of the Tax-
Exempt Bonds to lose their exemption from federal income taxation.
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17.4 Existing Bonds. The Existing Bonds are the only bonds authorized and issued
by City which are outstanding as of the Effective Date and applicable to the Health Care
System. City will make such reports and disclosures from time to time as are required under
the Existing Bond Documents.
17.5 Assigned Contracts; Consents. City shall make a good faith effort to obtain
such consents and give such notices as may be required in connection with the assignment to
HHC of Assigned Contracts.
17.6 Cooperation. City, at HHC's expense, shall cooperate reasonably with HHC
in any manner necessary to enable HHC to fulfill HHC's obligations and exercise HHC's
rights under this Agreement.
17.7 Trade Secrets. City understands that certain records that are defined as "trade
secret information" pursuant to Minnesota law are of substantial value of HHC, and, except
as otherwise required by law, are and have been maintained in the strictest confidence as
trade secrets, and agrees, except as otherwise required by law, not to divulge, furnish, or
make accessible to anyone (other than HHC and its designees) any trade secrets at any time.
17.8 Environmental Condition. Except for Hazardous Materials used by City in the
ordinary course of operating the Health Care System and in accordance with Hazardous
Substance Laws: (a) City has not generated, manufactured, stored or released any Hazardous
Materials on or about the Health Care System Real Property, and has permitted no other
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party to do any of the same; and (b) City has received no notice of and has no knowledge (i)
that any Hazardous Material are or have ever been generated, manufactured, stored or released
about the Health Care System Real Property, (ii) of any, requests, notices, investigations,
demands, administrative proceedings, hearings, litigation or other action proposed, threatened or
pending relating to any of the Health Care System Real Property alleging non-compliance with
or liability under any Hazardous Material Law, or (iii) that any above-ground or underground
storage tanks or other containment facilities of any kind containing any Hazardous MaterialS are
or have ever been located about the Health Care System Real Property.
17.9 Emoloyees. City will take such actions with respect to Health Care System
Employees as and when required under Section 18.11.
17.10 Future Financings. HHC may during the term of this Agreement undertake
capital improvements to all or part of the Health Care System or replacements thereof, and
during the term of this Agreement may further improve or expand the Health Care System
for the purpose of serving community health care needs ("Future Improvements"). In order
to undertake and complete any such Future Improvements, HHC must secure adequate and
affordable long-term financing. City has, pursuant to the authority vested in it under
applicable law, the ability to issue revenue bonds or general obligation bonds for this
purpose. Upon the request of HHC, City agrees to consider use of its authority to issue such
bonds, provided:
.
(a) City determines that issuance of revenue bonds or general obligation
bonds (i) would advance HHC's purpose of serving community health care needs,
(ii) is authorized by law, and furthers City's interests,
(b) such bonds may be issued only for the construction of Future
Improvements, or for the refunding, refinancing or otherwise defeasing the Existing
Bonds or other bonds issued to finance Future Improvements, and
(c) HHC executes and delivers all documents and instruments, and
otherwise delivers or causes to be delivered to City all certificates and opinions, as
may be reasonably requested by City and are customarily provided in connection with
bonds financings.
Article 18.
Reoresentations and Covenants of HHC
18.1 Formation of HHC. HHC is a nonprofit corporation duly organized and in
good standing under the laws of the State of Minnesota. HHC has the power to lease and to
own assets and to carryon its business as contemplated under this Agreement.
18.2 Power and Authority. HHC has the power to execute and deliver this
Agreement and to carry out the transactions contemplated herein. All corporate actions
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required to be taken by HHC to authorize the execution, delivery and performance of this
Agreement and all transactions contemplated hereby have been duly and properly taken.
18.3 Agreement Valid and Binding. The Agreement is duly executed and delivered
and is a valid and legally binding obligation of HHC enforceable in accordance with its
terms. The execution and delivery of this Agreement does not, and the consummation of the
transactions contemplated hereby will not, result in the creation of any lien, charge or
encumbrance or the acceleration of any indebtedness or other obligation of HHC, and are not
prohibited by, in violation of or in conflict with any provisions of, and will not result in a
default under or a breach of (i) any contract, agreement or other instrument to whichHHC is
a party or is bound; (ii) any ordinance, law or regulation; or (iii) any order, decree or
judgment or any court of governmental agency to which HHC is a party or is bound.
18.4 Nonprofit Status: Principal Office: Primary Service Area. HHC shall remain
throughout the Term qualified to do business as a Minnesota nonprofit corporation with its
principal office in the City of Hutchinson, Minnesota. HHC will operate the Health Care
System such that the City of Hutchinson will always be in the HHC Geographic Service Area
as that term is defined at the date hereof in the Bylaws of HHC.
18.5 Tax-Exempt Bonds. The parties intend that the interest paid on the Tax-
Exempt Bonds will not be included in the gross income of the holders thereof for federal
income tax purposes within the meaning of Section 103 of the Code. In furtherance thereof,
the parties agree that each will take any and all necessary actions in order for the interest on
the Tax-Exempt Bonds to remain exempt from federal income taxation. Without limiting the
foregoing:
(a) HHC represents that it is an organization described in Section 501 (c)(3)
of the Code (a "sOI(c)(3) Organization") and agrees that it shall maintain its status as
an organization described in Section 501 (c)(3) of the Code,.and exempt from federal
income tax under Section sOI(a) of the Code, and it will not receive or realize any
unrelated trade or business income to the extent such income would adversely affect
the tax-exempt status of the Tax-Exempt Bonds.
(b) So long as any Tax-Exempt Bonds are unpaid, no more than five
percent (5%) of the facilities financed by the net proceeds of the Tax-Exempt Bonds
will be used by any person other than:
(1) a Governmental Unit;
(2) a 501 (c)(3) Organization in a trade or business, the conduct of
which is substantially related to the exercise or performance by the nonprofit
corporation of its charitable, educational, or other purpose or function which
constitutes the basis for its exemption under Section 501 of the Code; or
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(3) a limited liability company, the sole member of which is a
sOI(c)(3) Organization, that operates as described in subparagraph (2) above; unless
the Tax-Exempt Bonds which financed such facilities are redeemed within ninety (90)
days. from date on which there is a change from such an ownership.
(c) So long as any Tax-Exempt Bonds are unpaid, HHC shall not take or
omit to take, and shall not permit others to take or omit to take, any action that would
adversely affect its qualification as a sOI(c)(3) Organization.
(d) HHC shall not take any action or omit to take any action with respect to
the gross proceeds of the Tax-Exempt Bonds or with respect to any amounts expected
to be used to pay the interest thereon or the principal thereof, which if taken or
omitted, would cause any of the Tax-Exempt Bonds to be determined to be an
"arbitrage bond," within the meaning of Section 148 of the Code.
(e) HHC shall not enter into any "management agreement," as defined in
Revenue Procedure 97-13,1997-1 COB. 632 (February 3,1997) ("Rev. Proc. 97-
13"), that does not satisfy the "safe harbor" provisions of Rev. Proc. 97-13, except to
the extent City receives an opinion of Bond Counsel to the effect that nonobservance
of this representation will not cause interest on any Tax Exempt Bonds to be included
in gross income for federal income tax purposes.
(f) HHC shall not take or omit to take, nor permit others to take or omit to
take, any action, which, if taken or omitted, would adversely affect the exclusion of
interest on the Tax-Exempt Bonds from gross income for federal income tax
purposes.
(g) HHC shall immediately remit to City any amount required to be rebated
to the Internal Revenue Service pursuant to the provisions of Section 148 of the Code.
18.6 Existing Bonds. HHC shall cooperate with City and shall provide such
instructions and requests to City from time to time as may reasonably be necessary to enable
City to timely make such reports and disclosures as are required under the Existing Bond
Documents. HHC shall not, by any act or omission, cause City to fail to comply with the
financial and other covenants set forth in the resolution of City Council approving the
Taxable Medical Facilities Gross Revenue Bonds, Series 1998, nor with any financial or
other covenants set forth in documents governing any Future Financing issued pursuant to
Section 17.10.
18.7 Health Care Licenses. HHC shall obtain on or before the Effective Date such
licenses to operate the Health Care System from the Minnesota Department of Health ,
including a hospital license, and shall maintain such licenses in good standing throughout the
Term.
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18.8 Medicare Certification. HHC shall comply with all Medicare conditions of
participation or submit timely corrective action plans satisfying same throughout the Term.
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18.9 Accreditation. HHC shall maintain the Health Care System accreditation by
the relevant state survey agency or The Joint Commission throughout the Term.
18.10 Medical Staff. On or before the Effective Date, HHC shall adopt the Medical
Staff Bylaws of Hutchinson Health Care, including the Policy on Appointment,
Reappointment & Clinical Privileges, Organization and Functions Manual, and Rules and
Regulations in effect as of the Effective Date and shall extend privileges to all members of
the Health Care System medical staff and its independent allied health professional staff on
the same terms that were in effect as of the Effective Date.
18.11 Emolovment Offers to Existing Emolovees; Certain Liabilities.
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(a) Effective as of the Effective Date, City shall terminate the employment
of all Health Care System Employees and HHC shall offer employment to all such
Health Care System Employees under the same job title, responsibilities, salary and
substantially similar employee benefits in effect as of the Effective Date. This
covenant, however, shall not be construed to create any right for any individual to be
employed by HHC, it being understood that HHC shall have the right to make
personnel changes consistent with its operating needs; and no Health Care System
Employee shall be offered employment by HHC unless such employee agrees to the
transfer by City to HHC of the employment records with respect to such employee.
HHC shall assume and shall pay and satisfy when due, all of City's obligations to pay
accrued, but not paid, wages, paid time off, to Health Care System Employees. City
shall make all scheduled payroll disbursements until the Effective Date. Except as
provided in Section 18.11(b) below, HHC does not hereby assume any other
obligations with respect to City's employees. HHC will adopt, at its sole election,
either a Section 401 (a) or a Section 403(b) defined contribution retirement plan. The
initial contribution rate by HHC shall be the percentage of employee covered salary
utilized by City immediately prior to the Effective Date.
(b) Any unemployment benefits costs associated with the termination of
the employment of an employee with City or with any other subsequent employer
where City would be an employer for the previous four (4) quarters will be the sole
responsibility of HHC, and HHC shall reimburse City for any such costs billed to it.
HHC shall remain obligated under this subparagraph until such time as City is no
longer an employer of record for the previous four (4) quarters for the benefit year
indicated by the unemployment statement of benefits.
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(c) City maintains the Hutchinson Health Care Deferred Compensation
Plan, an eligible governmental plan described in Section 4s7(b) of the Code, (the
"4s7(b) Plan") for the benefit of certain Health Care System Employees. Those
Health Care System Employees shall no longer be eligible to participate in said plan
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following severance of employment with City. HHC agrees to act as City's delegate
and accept appointment as the Administrator of the 457(b) Plan in order to carry out
the terms of the 457 (b) Plan until distribution of all accounts held under the plan are
made following severance of employment with City by the participants in the plan.
HHC shall be responsible for the costs and expenses incurred in the administration of
the 4s7(b) Plan.
18.12 Operating Expenses and Taxes. In addition to HHC's agreement to pay
certain taxes, maintenance expenses and insurance associated with the Health Care System
Real Property pursuant to Articles 4,5 and 6 hereof, HHC shall pay, or otherwise cause to be
paid, all Operating Expenses, whenever incurred. For purposes of this Agreement, the term
"Operating Expenses" means all costs associated with operation of the Health Care System
including, but not limited to, the costs of maintenance and repair, utilities, equipment rental,
professional fees, salaries, wages, employee benefits, permit fees, license fees, and, as the
same respectively become due, all taxes, assessments and governmental charges that may be
lawfully assessed or levied against or otherwise attributable to the Health Care System
during the Term; provided, however, that with respect to taxes, assessments or governmental
charges that may lawfully be paid in installments over a period of years, HHC shall be
obligated to pay only such installments as are required to be paid during the Term. HHC
may, at its expense and in its own name and behalf, or, to the extent lawful, in the name and
behalf of City, in good faith, contest any such taxes, assessments and governmental charges
in accordance with Article 25 hereof.
. 18.13 Reporting Requirements. HHC shall deliver to City copies of HHC' s audited
annual financial statements prepared in accordance with GAAP within one hundred fifty
(150) days after the end of each fiscal year during the Term and HHC shall provide proof to
City annually that all applicable health care accreditations have been maintained. In
addition, HHC shall provide both (i) an annual letter from HHC's Board of Directors and
Chief Executive Officer to the effect that nothing has come to their attention to indicate that
an Event of Default has occurred that has not been cured pursuant to Section 20.1, or if such
an uncured Event of Default exists, such letter shall set forth the details thereof; and (ii) any
and all documentation provided to and from Moody's, Standard & Poor's and like agencies
evaluating the financial and operating performance of the Hospital or the Health Care
System.
18.14 Indigent Care. HHC shall operate the Hospital Property as a hospital open to
the general public providing emergency and acute care services, from time to time at no
charge or at reduced charges in accordance with charity care, discount and community
benefit policies consistent with HHC's charitable purposes approved by HHC's board of
directors and in compliance with any applicable federal, state and City statute or ordinance
and regulations with respect thereto.
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18.15 Operating Parameters. City has entered into this Agreement in the belief that
HHC can effectively and efficiently operate the Health Care System. Accordingly, in
addition to the qualitative performance covenants set forth above herein, HHC agrees to
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operate the Health Care System such that, at all times during the Term, the Health Care
System is in compliance with the Operating Parameters (including the cure provisions
applicable thereto), all covenants and obligations set forth in Section 18.5 with respect to the
Existing Bonds, and any such covenants and obligations undertaken by HHC in connection
with financing referenced in Section 17.11 of this Agreement. The parties acknowledge that
the Operating Parameters have been designed as indicators of financial and quality jeopardy
under current market conditions. HHC and City shall, from time to time, amend the
Operating Parameters as necessitated by changes in market conditions in order to maintain
their status as indicators of financial and quality jeopardy, taking into consideration the
performance of similarly situated nonprofit corporations having operations comparable to
HHC's Health Care System Operations.
18.16 Investments. HHC, acting through its board of directors, agrees to invest all
Hospital Funds in accordance with the standard of care set forth in Minnesota Statutes
Section 309.62 et seq. and consistent with the standard of care set forth in Minnesota Statutes
Section 1 LA.09.
Article 19.
Condition of Prouertv
19.1 Except as expressly stated herein, City does not make any representations or
warranties regarding the Health Care System. HHC agrees that it is leasing and acquiring the
Health Care System on an "AS IS", "WHERE IS" and "WITH ALL FAULTS" basis, based
upon its own judgment. CITY MAKES NO WARRANTY WITH RESPECT TO THE
HEALTH CARE SYSTEM OR ANY PART THEREOF, EXPRESS OR IMPLIED, AND
CITY SPECIFICALLY DISCLAIMS ANY WARRANTY OF MERCHANTABILITY AND
OF FITNESS FOR A PARTICULAR PURPOSE AND ANY LIABILITY FOR
CONSEQUENTIAL DAMAGES ARISING OUT OF THE USE OF OR THE INABILITY
TO USE THE HEALTH CARE SYSTEM OR ANY PART THEREOF.
Article 20.
Events of Default: Termination
20.1 Events of Default. If anyone or more of the following events ("Events of
Default") shall happen, then and in any such event, City may give notice to HHC specifying
such Event or Events of Default and stating that this Agreement and the Term shall expire
and terminate on the date specified in such notice, and on such date, unless such specified
Event or Events of Default shall have been cured, this Agreement shall terminate and HHC
shall remain liable as hereinafter provided:
(a) HHC defaults in the payment of any Annual Rent payable under this
Agreement and HHC does not cure such default within fifteen (15) days after actual
receipt of notice thereof;
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(b) HHC fails to satisfy an Operating Parameter giving rise to the City's
voting member amendment rights set forth in Section 7.3(d) ofHHC's bylaws, and
the City provides written notice to HHC within the time period specified in the
Operating Parameter that such amendment rights shall take effect.
(c) HHC fails to pay any other monetary obligation when due or observe or
perform any of the other terms, conditions, covenants or agreements required to be
observed or performed by it under this Agreement and such failure shall continue for
a period of, in the case of a monetary obligation, thirty (30) days or, in the case of a
non-monetary obligation, sixty (60) days, following actual receipt of written notice of
such failure by HHC, or, in the case of a non-monetary default which cannot with due
diligence be cured within such period of sixty (60) days, HHC fails to proceed with
due diligence within such period of sixty (60) days to commence to cure the same and
thereafter to prosecute the curing of such default with due diligence.
20.2 Repossession. If this Agreement is terminated pursuant to Section 20.1, City
may enter upon and repossess the Health Care System Real Property (said repossession being
hereinafter referred to as "Repossession") by legal process, and may remove HHC and all
other persons therefrom.
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20.3 Continued Liabilitv. No termination of this Agreement pursuant to Section
20.1 and no Repossession of the Health Care System Real Property pursuant to Section 20.2
or otherwise shall relieve HHC of its obligation to pay Annual Rent or any of its other
obligations under this Agreement, all of which shall survive any such termination or
Repossession.
20.4 Re-Ietting. In the event that the Term shall terminate as provided in this
Article 20 before its scheduled expiration, City, at its option, may elect from time to time
following Repossession to rent the Health Care System Real Property or any part thereof in
its own name, or for the account of HHC, for the residue of the then Term or for a longer
period of which said residue is a part, or for a shorter period or periods, at such rentals and
upon such terms as City deems best, and may receive rents therefor, applying any monies
collected for the residue of such term, first, to the payment of such reasonable expense,
including reasonable attorneys' fees, to which City may have been put to obtain possession,
accomplish such reletting and care for the Health Care System Real Property while vacant;
and, second, the balance of the net amount of the rents to the performance of HHC's
obligations under this Agreement. Any surplus shall belong to City but HHC shall remain
liable for any deficiency. City shall act reasonably to mitigate damages.
20.5 No Waiver. No failure by any party to insist upon the strict performance of
any term hereof or to exercise any right or remedy consequent upon a breach thereof, and no
acceptance of full or partial rent during the continuance of any such breach, shall constitute a
waiver of any such breach or of any such term.
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20.6 Exercise of Rights While in Default. HHC may exercise and continue to
exercise all of its rights under this Agreement upon the occurrence and during the
continuance of any default and Event of Default under this Agreement up to the point of
termination of this Agreement and actual Repossession, including but not limited to the
Purchase Option.
Article 21.
Surrender of the Property
21.1 Surrender of Health Care System Real Property. In the event HHC does not
exercise and fulfill the requirements of the Purchase Option, upon the expiration or sooner
termination of this Agreement, HHC shall quit and surrender the Health Care System Real
Property leased to it pursuant to this Agreement, in the condition required to be maintained in
accordance with this Agreement (subject to ordinary wear and tear and damage by fire or
other casualty excepted), to City, without any payment therefor by City, without delay, free
and clear of alllettings and occupancies (other than assignments and subleases entered into
as permitted under this Agreement).
21.2 Disposition of Health Care Svstem. The parties acknowledge that in certain
situations, including in the event HHC does not exercise and fulfill the requirements of the
Purchase Option, the bylaws of HHC provide City certain corporate membership rights
which could affect the disposition of the assets of the Health Care System upon termination
of this Agreement. In such situations, in addition to the specific rights set forth in Section
21.1, City may assert such membership rights and take such other actions as it deems
advisable to cause the return or distribution to City, and the manner thereof, of such Health
Care System assets as the City may determine at that time and as allowed by law. It is
understood that, depending on the manner of such actions, City may be required to assume
certain liabilities as required by law.
Article 22.
No Merger of Title
There shall be no merger ofHHC's interest in this Agreement nor of the leasehold
estate created by this Agreement with the fee estate in the Health Care System Real Property
or any part thereof by reason of the fact that the same person may acquire or own or hold,
directly or indirectly, (a) HHC's interest in this Agreement or the leasehold estate created by
this Agreement or any interest therein and (b) the fee estate in the Health Care System Real
Property or any part thereof or any interest therein, and no such merger shall occur unless
and until all persons then having an interest in, which interest shall have been voluntarily
created by the holders of, the ownership interests described in (a) and (b) above, shall join in
a written instrument effecting such merger and shall duly record the same.
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Article 23.
Quiet Enioyment
City covenants that HHC shall quietly have, hold and enjoy the Property during the
Term without hindrance or molestation, subject only to Article 20. City represents, warrants
and covenants to HHC that the Health Care System is free and clear of all prior liens and
encumbrances except for the Medical Office Building Leases, the Shopping Center Leases,
and except to the extent that the Existing Bond Documents create any liens or encumbrances.
Article 24.
Notices
All notices, requests, demands, consents, approvals, and other communications that
mayor are required to be served or given hereunder (for the purposes of this Article
collectively called "Notices") shall be in writing and shall be delivered personally or sent by
registered or certified mail, return receipt requested, postage prepaid, or by nationally
recognized overnight courier, addressed to the party to receive such Notice at the following
addresses:
If to City:
City of Hutchinson
Attention:
If to HHC:
Hutchinson Health Care
Attention;
With a copy to:
Attention:
Either party may, by Notice given as aforesaid, change its address for all subsequent Notices,
except that neither party may require Notices to it to be sent to more than two addresses.
Mailed Notices shall be deemed given when mailed in the manner aforesaid, provided that in
the case of a notice of default to HHC the same shall be deemed given only upon actual
receipt by HHC.
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Article 25.
Contests
25.1 Contest. After written notice to City, HHC may at its expense contest, by
appropriate proceedings conducted in good faith and with due diligence (all such proceedings
together with appeals therefrom being hereinafter referred to as "Contests") the amount,
validity or application, in whole or in part, of any tax, assessment, mechanics' lien,
encumbrance, charge or any other adverse claim for which HHC is responsible under this
Agreement (hereinafter collectively "claims") provided that:
(a) In the case of an unpaid claim, such Contest shall operate to suspend
the collection of the same from City and HHC therein;
(b) HHC shall have furnished such security, if any, as may be required in
the proceedings or reasonably required by City; and
(c) No part of the Health Care System or any interest therein shall be, in
the reasonable opinion of City, in imminent danger of being forfeited or lost.
25.2 Suspension of Obligation. During the period HHC carries forward any such
Contest in good faith, HHC shall be relieved from its obligations herein contained to pay the
claims, or to clear the liens with respect to which such contest is conducted. If and to the
extent HHC shall not prevail in any such Contest, HHC shall immediately pay and discharge
the claim in question to such extent.
25.3 Procedure. All such Contests may be brought by HHC in the name of HHC
or, if reasonably necessary, in the name of City or HHC and City, as may be appropriate.
Each party agrees to cooperate with the other in such Contests, short of the payment of
money with respect thereto, except where this Agreement otherwise requires payment. Each
party will endorse such pleadings, checks and other documents as will be appropriate to carry
out the purposes of this Article 25.
Article 26.
Purchase OPtion
26.1 Grant. Notwithstanding any other provision in this Agreement to the contrary,
HHC shall have the option to purchase the Health Care System Real Property from City at
the expiration of either Term for a purchase price equal to the greater of (i) the then-existing
balance of the Existing Bonds and interest accrued thereon, and (ii) one dollar ($1.00). HHC
must give City written notice of its intent to exercise its Purchase Option at least ninety (90)
days prior to expiration of the Term. The Parties acknowledge that the purchase price
represents a bargain sale and has no relation to the value of City's membership rights set
forth in the Bylaws of HHC.
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26.2 Title. Upon proper exercise of the Purchase Option by HHC, City agrees to
convey the Health Care System Real Property to HHC free and clear of all liens and
encumbrances, except for the Medical Office Building Leases, the Shopping Center Leases,
and any other lien or lease created, suffered or granted by HHC (or those claiming by,
through or under HHC). In connection with exercising the Purchase Option, HHC may, at its
expense, obtain a title insurance commitment. If such commitment reflects any matter
affecting title to the Health Care System Real Property that is objectionable to HHC (other
than this Agreement and any encumbrances created on or after the date hereof by HHC or
those claiming by, through or under HHC), then HHC may give written notice to City of
such matter. If HHC gives City such notice prior to closing, City shall at its expense within
sixty (60) days cause all encumbrances not permitted as provided above to be removed and
corrected of record. If City fails to do so within sixty (60) days, time being of the essence,
HHC may at its option; (a) attempt to cause such encumbrances to be removed, (b) proceed
to close without waiving any rights to damages hereunder, or (c) terminate the agreement
formed by exercise of the Purchase Option, this Agreement, or both, by giving written notice
thereof to City. If HHC elects alternative (a) above, closing shall be postponed until the
encumbrances in question are removed and, if HHC is unable within a further period of sixty
(60) days to cause such encumbrances to be removed, HHC may then elect either alternative
(b) or (c) above. No such postponement shall alter the purchase price. All costs and
expenses incurred by HHC in causing or attempting to cause such encumbrances to be
removed, including reasonable attorneys fees, shall be payable by City if attributable to any
fault or action by City.
26.3 Closing. Except as postponed pursuant to Section 26.2, the closing shall take
place at the time and place agreed to by City and HHC within the last sixty (60) days of the
Term. At the Closing, City and HHC shall execute and deliver such reasonable and
customary documents and instruments as may be necessary or desirable to convey City's
interest in the Health Care System Real Property to HHC, as herein provided. This
Agreement and all of the terms and provisions hereof shall remain in full force and effect
until the purchase has closed, except as otherwise provided in this Agreement.
26.4 Effect of Non-Exercise. If HHC does not exercise its Purchase Option, upon
termination of the Agreement HHC shall surrender the Health Care System Real Property to
City in the condition specified herein.
Article 27.
Miscellaneous
27.1 Consent. In any case under this Agreement which requires consent or
approval such consent or approval shall not be unreasonably withheld, conditioned or
delayed unless otherwise specified; provided that any consent relating to Section 17.10 as to
which a vote of City Councilor City Electorate is required, the decision of such body shall
not be deemed unreasonable, conditioned or delayed.
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27.2 Relationship of Parties. It is agreed that nothing herein contained is intended
or should be construed in any manner as creating or establishing the relationship of joint
venturers or as constituting HHC or any of its employees or agents as the employees or
agents of City, except as otherwise provided herein.
27.3 Miscellaneous. This Agreement shall be governed by the laws of the State of
Minnesota. If any term of this Agreement or any application thereof shall be invalid or
unenforceable, the remainder of this Agreement and any other application of such term shall
not be affected thereby. This Agreement may be changed, waived, discharged or terminated
only by an instrument in writing signed by the then owners of City and HHC interests herein.
This Agreement shall be binding upon and inure to the benefit of and be enforceable by the
respective successors and assigns of the parties hereto. The headings of this Agreement are
for purposes of reference only and shall not limit or define the meaning hereof. This
Agreement may be executed in any number of counterparts, each of which is an original, but
all of which shall constitute one and the same instrument.
27.4 Recording. This Agreement, or a short form of this Agreement, may be
recorded in the real estate records of the Counties in which the Health Care system Real
Property is situated. HHC and City agree to cooperate with each other in the preparation and
recordation of any such short form of this Agreement.
27.5 Non-Delegation and Lack of Control. No provision of this Agreement shall be
construed as a delegation by City to HHC of any governmental function of City. Further,
HHC and City have determined that the rights of City under this Agreement and the rights
granted to City by HHC under its Articles of Incorporation and Bylaws do not, and are not
intended to, give City direct or indirect control over the conduct of the Health Care System
or its operations.
[Signature pages follow]
fb.us.1682982.05
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IN WITNESS WHEREOF, the parties hereto have executed this instrument under
seal as of the day and year fIrst above written.
CITY OF HUTCHINSON
By:
Its:
And by:
Its:
STATE OF
. COUNTY OF
)
) ss.
)
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The foregoing instrument was acknowledged before me this _ day of
, 2007, by and , the
and ,respectively, of the City of
Hutchinson, a Minnesota municipal corporation, on behalf of the municipal corporation.
Notary Public
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STATE OF
COUNTY OF
HUTCHINSON HEALTH CARE
By:
Its:
And by:
Its:
)
) ss.
)
The foregoing instrument was acknowledged before me this _ day of
,2007, by and
the and ,respectively, of Hutchinson
Health Care, a Minnesota nonprofit corporation, on behalf of the nonprofit corporation.
Notary Public
THIS INSTRUMENT WAS DRAFTED BY:
Faegre & Benson LLP
2200 Wells Fargo Center
90 South Seventh Street
Minneapolis, MN 55402
Phone: (612) 766-7000
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Hospital Land:
Medical Office Building Land:
. Nursing Home Land:
Shopping Center Land:
Dassel Medical Center Land:
Regional Eye Land:
Auxiliary Land:
EXHIBIT A
Legal Description of the Land
ID(c\)
EXHIBIT B
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Excluded Assets
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EXHIBIT C
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Motor Vehicles
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EXHIBIT D
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Escrow Agreement
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Ordinance No. 07 -0473
AN ORDINANCE APPROVING LEASING OF CERTAIN LAND, BUILDINGS AND OTHER PROPERTY
TO HUTCHINSON HEALTH CARE
WHEREAS, in conjunction with its operation of a health care system in the City of Hutchinson, City owns
Hospital Property, Nursing Home Property, Medical Office Building Property, Shopping Center Property, Dassel
Medical Center Property, Regional Eye Property, and Auxiliary Property, and other real property in the Hutchinson
area, each as hereinafter defined; and,
WHEREAS, also in conjunction with its operation ofa health care system in the City of Hutchinson, the
City owns equipment, fixtures and other tangible property; and.
WHEREAS, City has concluded, following many months of analysis, public input and consultation with
health care experts, that the lease ofthis property is likely to: (i) enhance operating efficiencies and effectiveness,
(ii) enhance the Hutchinson health care system's ability to form linkages with other health care institutions and
providers to form an integrated delivery system offering an increased continuum of care to the residents of City, (iii)
improve the environment for physician and allied health professional recruitment and retention, and (iv) promote the
Hutchinson health care system's ability to maintain financial viability and adaptability to future changes and
challenges in the health care environment, especially those posed by state and national health care reform; and,
WHEREAS, City has determined that it is in the best interest of the delivery of health care to residents of
the City of Hutchinson and the community served by the health care system to lease and transfer the operation and
assets of the health care system to a private, nonprofit, non-governmental corporation; and,
WHEREAS, HHC is a nonprofit corporation organized under the laws of the State of Minnesota for the
purpose of acquiring and operating the health care system; and,
. WHEREAS, City has the statutory power and authority, pursuant to Minnesota Statutes 99144.581 and
447.47, to lease and transfer the health care system to HHC; and,
WHEREAS, HHC has the power and authority to accept the lease and transfer of such assets and
operations from City under the terms and conditions set forth herein; and,
WHEREAS, City has concluded that the community served by the health care system will he best served
by undertaking transactions described .in this Agreement; and,
WHEREAS, City and HHC intend for HHC to operate the health care system in a private, non-
governmental capacity, not subject to any of the laws of the State of Minnesota or of the federal government that
apply exclusively to governmental bodies or instrumentalities thereof; and,
WHEREAS, HHC intends to operate the health care system in a manner consistent with its charitable
purposes, including, but not limited to enhancing the health of people in the communities it serves without
expectation of financial gain,
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON,
THAT THE CITY HEREBY AUTHORIZES THE LEASING OF CERTAIN LAND, BUILDINGS AND
OTHER PROPERTY TO HUTCHINSON HEALTH CARE AS OUTLINED AND DEFINED IN SAID
LEASE AGREEMENT HEREBY ATTACHED AS EXHIBIT A TO THIS ORDINANCE.
Signed this
day of
,2007.
Attest:
.
Gary D. Plotz, City Administrator
Steven W. Cook, Mayor
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HHC 8-22-07 DRAFT
RESTATED BYLAWS
OF
HUTCHINSON HEALTH CARE
PREAMBLE
Hutchinson Health Care (the "corporation") is a nonprofit health care corporation, including
a hospital, nursing home, and clinic, organized under the laws of the State of Minnesota.
The mission ("Mission") of Hutchinson Health Care is "to promote health and provide care
alternatives to our community."
The Board of Directors of Hutchinson Health Care is responsible for the quality of care
rendered by the corporation and must accept and discharge this responsibility to do all that is
necessary to fulfill the corporation's obligation to its patients, clients, and residents.
The corporation is formed as the result of the conclusions of a community task force which
has recommended that assets and activities of the City of Hutchinson, Minnesota ("City")
with respect to delivery of health care services be transferred to a private nonprofit entity not
controlled by the City as a way to more effectively and efficiently provide for the health care
needs of residents in the primary service area of Hutchinson Community Hospital
("Hospital"). The corporation was formed under the auspices of community representatives
serving on the task force and not by the City under Section 144.581 of the Minnesota
Statutes. Acknowledging that the corporation needs the cooperation of the City of
Hutchinson to deliver on certain aspects of its mission, the corporation has provided for
certain rights to be exercised by the City as provided in these Bylaws.
At the time of adoption of these Restated Bylaws, the corporation offers a wide variety of
services including, in addition to hospital inpatient and outpatient services and clinical
services, emergency room, and nursing home services.
The corporation defines its fundamental nature ("Fundamental Nature") as an independent
private health care provider, providing a reasonable range of acute care and outpatient
hospital services and clinic services.
DIRECTORS
SECTION 1.1 Number and method of election. The Board of Directors of
this corporation shall consist of an odd number of no fewer than seven (7) and no more than
eleven (11) persons, and, subject to such limitation, the number of members of the Board of
Directors shall be such as may be designated from time to time by the Board of Directors.
Members of the Board of Directors shall be elected or appointed as set forth below in
accordance with the nominations process described in Section 4.5 of these Bylaws.
(a) Appointed Directors. Within the Board size parameters established from time
to time by the Board, the largest number of directors which constitute a minority of the total
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number of authorized directors shall be appointed by the City Council of the City (the "City
Council"). No more than two (2) of such appointees may concurrently serve as members of
the City Council.
(b) Ex Officio Director. There shall be one (1) Ex Officio Director, who shall be
the physician serving from time to time as the Chief of the Medical Staff of the Hospital.
The Ex Officio Director shall have voting rights.
(c) Communitv Directors. The remainder of the directors shall be elected by the
Board of Directors of this corporation at the annual meeting of this corporation and shall be
known as Community Directors. At least two (2) of the Community Directors shall be
residents of the Hospital's Geographic Service Area at the time of election, and of those, at
least one director shall be a resident of the City. The Geographic Service Area shall mean
the area composed of the lowest number of contiguous zip codes from which the Hospital
draws at least 75 percent of its inpatients.
SECTION 1.2 Board Composition. The composition of the Board of
Directors is subject to the following limitations:
(a) Credentialed practitioners. At any given time, no more than one-third of the
directors may be health care professionals credentialed to provide services at the Hospital or
any other health care facility owned by this corporation.
(b) Directors of other systems. At any given time, a majority of the directors of
this corporation shall be persons who are neither: (i) directors of any other health care
providers or health care systems residing outside the Hospital's Geographic Service Area;
nor (ii) directors of any single health care provider or health care system.
(c) Emplovees. No employee ofthis corporation shall be a member of the Board
of Directors; provided, however, that this requirement shall not apply to health care
professionals credentialed to provide services at the Hospital or any other health care facility
owned by this corporation.
SECTION 1.3 Terms. Except as otherwise provided in Section 1.1, each
director of this corporation other than the Ex Officio Director shall be elected or appointed to
serve for a term of three years, and, unless the Board of Directors has determined that a
successor will not be elected or appointed, until his or her successor has assumed office; or
until the director's prior death, resignation or removal. Each Community Director and
Appointed Director is limited to serving four consecutive terms. The term of office of the Ex
Officio Director shall be coterminous with his or her term as Chief of the Hospital's Medical
Staff. The Community Directors and Appointed Directors shall each be divided into three
classes as nearly equal in number as possible, so that the terms of office of approximately
one-third of the Community Directors and approximately one-third of the Appointed
Directors shall expire each year.
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SECTION 1.4 Compensation. Directors shall not receive compensation for
their service as directors; provided, however, that this corporation may reimburse directors
for reasonable and necessary expenses incurred while performing the duties of a director.
SECTION 1.5 Removal; resignation; vacancies. Any director may at any
time be removed with or without cause by the Board of Directors; provided, however, that an
Appointed Director may be removed by the Board of Directors only for cause by the
affirmative vote of two-thirds of the directors of this corporation. For purposes of the
foregoing sentence, "cause" shall mean breach of fiduciary duty. An Appointed Director
may also be removed with or without cause by the City Council. Any director may resign at
any time by giving written notice to the Chair or the Secretary. The resignation shall be
effective without acceptance when the notice is received by the Chair or the Secretary, unless
a later effective date is specified in the notice. Any vacancy occurring because of the death.
resignation or removal of a Community Director may be filled by a person elected by the
Board of Directors for the unexpired term of such director provided; however, that the Board
complies with the requirements of Section 1.1 (c) and Section 1.2 of these Bylaws. Any
vacancy occurring because of the death, resignation or removal of an Appointed Director
shall be filled by a person appointed by the City Council; which shall fill the vacancy within
60 days following the date the vacancy occurs. Any vacancy resulting from an increase in
the number of Community Directors may be filled by a person elected by the Board of
Directors for a full term of office unless the Board of Directors designates a shorter term of
office.
MEETINGS OF THE BOARD OF DIRECTORS
SECTION 2.1 Annual meeting. The annual rneeting of the Board of Directors
for the purpose of electing Community Directors and officers and transacting such other
business as may properly come before the meeting shall be held in the City at the time and
place designated from tirne to time by the Board of Directors, provided that, by unanimous
action of the Board of Directors, another place of meeting within the State of Minnesota may
be designated.
SECTION 2.2 Other meetings. Other meetings of the Board of Directors may
be held at such time and place as are announced at a previous meeting of the Board of
Directors, however the Board of Directors shall meet at least quarterly. The annual meeting
serves as a quarterly meeting. Meetings of the Board of Directors may also be called at any
time (a) by the Chair, (b) by the Board of Directors, or (c) upon the request of three or more
members of the Board of Directors. Anyone entitled to call a meeting of the Board of
Directors may make a written request to the Secretary to call the meeting, and the Secretary
shall give notice of the meeting, setting forth the time and place thereof, to be held between
two and thirty days after receiving the request. If the Secretary fails to give notice of the
meeting within seven days from the day on which the request was made, the person or
persons who requested the meeting may fix the time and place of the meeting and give notice
in the manner hereinafter provided.
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SECTION 2.3 Notice of meetings. Notice of each meeting of the Board of
Directors for which notice is required, and of each annual meeting, stating the time and place
thereof, shall be given to all directors by electronic communication or in person at least two
days before the meeting, or shall be mailed to each director at least five days before the
meeting. A director may be given notice by electronic communication only ifthe director
has previously consented to receive notice in such form of electronic communication. All
such notices not given in person shall be sent to the director at his or her postal or electronic
address according to the latest available records of this corporation. Any director may waive
notice of a meeting before, at or after the meeting, orally, in writing, by electronic
communication, or by attendance. Attendance at a meeting is deemed a waiver unless the
director objects at the beginning of the meeting to the transaction of business because the
meeting is not lawfully called or convened and the director does not participate in the
meeting.
SECTION 2.4 Ouorum and voting. The presence of at least a majority of the
members of the Board of Directors shall constitute a quorum at any meeting thereof,
provided that at least one Appointed Director is present. The directors present at any
meeting, although less than a quorum, may adjourn the meeting from time to time. If a
quorum is present when a duly called meeting is convened, the directors present may
continue to transact business until adjournment, even though the withdrawal of one or more
directors leaves less than the number otherwise required for a quorum. At all rneetings of the
Board of Directors, each director shall be entitled to cast one vote on any question coming
before the meeting. A majority vote of the directors present at any meeting, if there be a
quorum, shall be sufficient to transact any business, unless a greater number of votes is
required by law or these Bylaws. A director shall not appoint a proxy for himself or herself
or vote by proxy at a meeting of the Board of Directors. For purposes of determining
whether a director has met his or her fiduciary duties as a director, but for no other purpose, a
director who is present at a meeting of the Board of Directors when an action is approved by
the Board of Directors is presumed to have assented to the action unless the director votes
against the action or is prohibited from voting on the action.
SECTION 2.5 Action without a meeting. Any action that could be taken at a
meeting of the Board of Directors may be taken by written action signed by all of the
directors.
SECTION 2.6 Meetings held using remote communication. A director may
participate in a meeting of the Board of Directors by means of conference telephone or, if
authorized by the Board of Directors, by such other means of remote communication, in each
case through which that director, other directors so participating, and all directors physically
present at the meeting may communicate with each other on a substantially simultaneous
basis. Participation in a meeting by remote communication constitutes presence at the
meeting.
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SECTION 2.7 Actions Subiect to Supermaioritv Approval. The following
actions shall require the approval of at least two-thirds of the total number of authorized
directors; provided, however, that the actions listed in subsections (a) through (i) shall not be
effective unless the voting mernber has approved the action or waived its rights as described
in Article VIII of these Bylaws:
(a) Amendments to the Articles ofIncorporation of this corporation.
(b) Amendments to the Preamble and Sections 1.1, 1.2, 1.4, 1.5,2.4,2.5,2.7,4.1,
4.2,4.3,4.5,8.1,8.2,8.3,8.4, or 8.5 of these Bylaws, including Exhibit A, in
accordance with Section 7.3 of these Bylaws.
(c) Merger, consolidation. liquidation. dissolution. or sale or lease, or other
transfer, or mortgage or other grant of a security interest, of or in, all or
substantial1y al1 of the assets of this corporation, provided that nothing herein
is intended to restrict the ability of the corporation to mortgage, grant a
security interest or otherwise encumber as col1ateral or security for debt held
by an institutional lender or bond trustee al1 or any part of the corporation's
assets in the ordinary course of business financing transactions where the
proceeds of such transactions are used to support the corporation's health care
operations.
(d)
Any subleases or assignments which if executed would bring the aggregate of
subleased or assigned space to a percentage of 30% or more of the space
identified with orreferenced in the corporation's hospital license (provided,
however, that space associated with leases or assignments in which the
services provided in such space or spaces are "provider-based services" billed
by and in the name of this corporation under applicable Medicare statutes and
regulations as in effect from time to time shal1 not be deemed a lease or
assignment for purposes of this limitation).
(e) Closure ofthe Hospital.
(t)
Contributions of cash or cash-equivalents that in the aggregate exceed 1.5
percent of the net income of the corporation during any fiscal year to any
person(s) or entit(ies) without receipt of fair market value consideration in
return; provided, however, that such contributions shall be made for the
charitable purposes described in Section 50 I (c )(3) of the Internal Revenue
Code ("IRC") and shall be in furtherance of the corporation's health care
mission; and provided further that this provision shal1 not prohibit: (1) the
provision of free or reduced price medical care in accordance with the
Hospital's charity care/community benefit policies or payor agreements; (2)
payment of recruitment incentives to physicians and other health care
practitioners provided in accordance with the applicable policies of this
corporation; or (3) donations of used equipment or supplies to a governmental
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entity or nonprofit organization exempt from income tax under IRC Section
sOI(c)(3).
(g)
Add additional members or create additional member rights.
(h)
Any action(s) the result of which would cause this corporation to fall outside
the definition of the Fundamental Nature of the corporation, or a transfer of
assets to a joint venture in which this corporation is a participant (whether or
not controlled), the result of which would be that this corporation would no
longer directly meet the Fundamental Nature definition.
(i)
Transfer of assets to an entity wholly owned or wholly controlled by this
corporation (unless such wholly owned or controlled entity gives to the City
the same director appointment, membership, and other rights as the City
possesses with respect to this corporation, in which case, such transfer will
require in any event a supermajority approval).
(j)
Transfer of assets to an entity wholly owned or wholly controlled by this
corporation, in which the City has the same director appointment,
membership, and other rights as the City possesses with respect to this
corporation.
(k)
Transfer of assets to a joint venture in which this corporation is a participant
(whether or not controlled).
(I) Closure of Emergency Room or transfer of nursing horne.
(m) Entering into a management agreement with a third party, other than the
manager as of the date of approval of these Bylaws, covering the day-to-day
operations of all or substantially all of the Hospital and/or nursing home
owned by this corporation.
(n) Declaration ofa dividend. (Dividends are not contemplated, however, the tool
is available if extraordinary/windfall circumstances arise, should the Board of
Directors choose to use it.)
(0) Delegation of authority to the Executive Committee to approve specific
transactions identified in Section 4.3(e).
OFFICERS
SECTION 3.1 Designation and term. The officers of this corporation shall
include a Chair, a Vice Chair, a Secretary, a Treasurer, and a President. Officers other than
the President shall be elected by the Board of Directors to serve for terms of one year and
until their respective successors are elected and have qualified. The President shall serve at
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the pleasure of the Board of Directors. Any officer may at any time be removed by the
Board of Directors with or without cause. Any officer may resign at any time by giving
written notice to the Chair or the Secretary. The resignation shall be effective without
acceptance when the notice is received by the Chair or the Secretary, unless a later effective
date is specified in the notice. The same person may hold more than one office at the same
time, except the offices of (a) Chair and Vice Chair and (b) Chair and Secretary. The
officers, except the Chair and Vice Chair, need not be directors of this corporation.
SECTION 3.2 Chair. The Chair shall, when present, preside at meetings of
the Board of Directors, and shall perform such other duties as are prescribed by the Board of
Directors. The Chair shall not also be the President.
SECTION 3.3 Vice Chair. During the absence or disability of the Chair, it
shall be the duty of the Vice Chair to perform the duties of the Chair.
SECTION 3.4 Secretarv. The Secretary shall perform or properly delegate
and oversee the performance of the following duties: (a) keep accurate minutes of all
meetings of the Board of Directors and of the members; (b) be responsible for the custody of
the records, documents and papers of this corporation; and (c) keep proper records of all
transactions of this corporation. The Secretary shall have and may exercise any and all other
powers and duties pertaining by law, regulation or practice to the office of Secretary, or
imposed by these Bylaws.
SECTION 3.5 Treasurer. The Treasurer shall perform or properly delegate
and oversee the performance of the following duties: (a) keep accurate financial records of
this corporation; (b) deposit money, drafts, and checks in the name of and to the credit of
this corporation in the banks and depositories designated by the Board of Directors; (c)
endorse for deposit notes, checks, and drafts received by this corporation as ordered by the
Board of Directors, making proper vouchers for the deposit; (d) disburse corporate funds
and issue checks and drafts in the name of the corporation, as ordered by the Board of
Directors; and (e) upon request, provide the Chair and the Board of Directors an account of
transactions of this corporation and of the financial condition of this corporation. The
Treasurer shall have and may exercise any and all other powers and duties pertaining by law,
regulation or practice to the office of Treasurer, or imposed by these Bylaws.
SECTION 3.6 President. The President shall be the chief executive officer of
this corporation. He or she shall: (a) have general active management of the business of this
corporation; (b) see that orders and resolutions of the Board of Directors are carried into
effect; and ( c) have the authority to sign and deliver in the name of this corporation deeds,
rnortgages, bonds, contracts, or other instruments pertaining to the business of this
corporation, except in cases in which the authority to sign and deliver is required by law to
be exercised by another person or is expressly delegated by the Articles of Incorporation, the
Bylaws or the Board of Directors exclusively to one or more other persons.
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SECTION 3.7 Additional powers. Any officer of this corporation, in addition
to the powers conferred upon him or her by these Bylaws, shall have such powers and
perform such additional duties as may be prescribed from time to time by the Board of
Directors.
COMMITTEES
SECTION 4.1 Committees. Except as provided in Section 4.2 of these
Bylaws, regarding the Executive Committee, this corporation shall not have committees with
the authority of the Board of Directors. The Board of Directors may establish advisory
committees, the members of which shall be appointed by the Board of Directors or, if
expressly authorized by the Board of Directors, by the Chair. Each such committee shall at
all times be subject to the control and direction of the Board of Directors. Except as
otherwise provided in these Bylaws, committee members need not be directors.
SECTION 4.2 Executive Committee. There shall be an Executive Committee
consisting of the Chair, Vice Chair, Secretary, Treasurer, and at least one Appointed Director
of this corporation, elected by the Board, who shall be voting members of the Executive
Committee, and the President, who shall serve as an ex officio non-voting member. The
Chair of this corporation shall be the chair of the Executive Committee. The Executive
Committee shall have the authority of the Board of Directors in the management of the
business of this corporation in the interval between meetings of the Board of Directors,
provided, however, that the Executive Committee shall not have authority to act on any
matter described in Section 2.7 of these Bylaws or matters listed in Section 4.3 below, except
as specifically provided in Section 4.3( e) and Section 2. 7( 0). The presence of all the
members of the Executive Committee shall constitute a quorum at any meeting thereof, but
the committee members present at any meeting, although less than a quorum, may adjourn
the meeting from time to time.
SECTION 4.3 Prohibited Actions. Notwithstanding any provision of these
Bylaws apparently to the contrary, the Executive Committee shall not have the authority to
take any of the following actions:
(a) Amend or repeal the Articles ofIncorporation or Bylaws of this corporation;
(b) Elect, appoint, or remove any member of the Board of Directors or the
Executive Committee, or any officer of this corporation;
(c) Adopt or approve a plan of merger or consolidation with another corporation;
(d) Authorize the sale, lease, exchange, mortgage or other disposition of all or
substantially all the assets of this corporation;
(e)
Authorize the sale, lease, exchange, mortgage or other disposition of the assets
of this corporation in the ordinary course of business, unless the Board of
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Directors has by resolution approved such delegation as provided in Section
2.7(0) and such resolution references both the specific transaction and the
specific assets for which authority is delegated;
(t)
Authorize the voluntary dissolution of the corporation or revoke proceedings
therefor; or
(g)
Amend or repeal any resolution of the Board of Directors.
SECTION 4.4 Audit/Compliance Committee. There shall be an
Audit/Compliance Committee consisting of the Treasurer, one Community Director, an
Appointed Director and one other individual, who need not be a director of this corporation,
with expertise in the areas of finance or consumer advocacy. The Treasurer of this
corporation shall be the chair of the Audit Committee. The Audit/Compliance Committee
shall (a) review this corporation's financial matters and report on them to the Board of
Directors, (b) recommend independent auditors for approval by the Board of Directors, and
(c) review this corporation's compliance program, including matters relating to charity care,
discounts and collections and report on the program to the Board of Directors.
SECTION 4.5 Governance Committee. There shall be a Governance
Committee consisting of one Appointed Director and two Community Directors. The
Governance Committee shall nominate individuals to serve as Community Directors and
officers of this corporation, shall supply criteria and desired competencies, may suggest
candidates to the City for Appointed Director positions and shall have such other duties as
the Board of Directors shall determine from time to time. The corporation is committed to
maintaining a Board having diverse competencies, aimed at effective oversight ofthe health
care enterprise. The Governance Committee shall periodically review and recommend to the
Board the general and special competencies that should be reflected in Board membership
and create, manage'and regularly review a list of potential board members from which a slate
of candidates for Board of Director vacancies can be developed (the "Candidate List").
For vacancies in Appointed Director positions, the Governance Committee will forward to
the City the Board's most recently adopted competency based board criteria, identify the
special competencies with respect to which the Governance Committee believes the current
Board has gaps, and list those candidates from the Committee's Candidate List who would
comply, in the Committee's judgment, with the criteria, given the competencies of the other
current Board members. In making its appointments, the City will review the corporation's
board criteria, the special competency gaps and consider names forwarded, if any, by the
Governance Committee, but shall be free to appoint whomever the City determines.
For vacancies in Community Director positions, the Governance Committee will identify and
forward to the Board the special competencies with respect to which the Governance
Committee believes the current Board has gaps, and list those candidates from the
Committee's Candidate List who would comply, in the Committee's judgment, with the
Board's most recent competency based board criteria, taking into account the competencies
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of the other current Board members. In filing vacancies for Community Board positions, the
Board will review the corporation's board criteria, the special competency gaps and consider
names forwarded by the Governance Committee, but shall be free to elect such individuals as
it determines.
SECTION 4.6 Meetings and voting. Meetings of each advisory committee
shall be called and held in accordance with the provisions of Sections 2.2 to 2.6 of these
Bylaws as they apply to meetings of the Board of Directors.
INDEMNIFICA nON
SECTION 5.1 Indenmification. This corporation shall indemnifY its directors,
officers. committee members. and employees against such expenses and liabilities, in such
manner, under such circumstances, and to such extent, as required or permitted by Minnesota
Statutes, Section 317A.s2I, subd. 2, as amended from time to time, or as required by other
provisions oflaw; provided, however, that no indemnification shall be made with respect to
any claim, issue or matter as to which the person shall be adjudged to be liable to this
corporation.
SECTION 5.2 Advances. This corporation shall advance expenses in such
manner, under such circumstances, and to such extent, as required or permitted by Minnesota
Statutes, Section 317 A.s21, subd. 3, as amended from time to time; provided, however, that
this corporation shall not advance expenses incurred in defense of a claim brought by or in
the right of this corporation or expenses incurred in pursuing a claim against this corporation.
The provisions of this Section are not intended to limit the ability of a person to receive
advances as an insured under an insurance policy maintained by this corporation.
SECTION 5.3 Insurance. This corporation may purchase and maintain
insurance on behalf of any person who is or was a director, officer, committee member, or
employee against any liability asserted against and incurred by such person in or arising from
such capacity, whether or not this corporation would otherwise be required to indemnify the
person against the liability.
MEDICAL STAFF
SECTION 6.1 Authoritv. In accordance with applicable law, the Board of
Directors shall have the ultimate authority to determine the categories of practitioners
eligible and criteria for appointment to the medical staffs of facilities operated by the
corporation. The Board of Directors shall have final authority on all matters involving
medical staff membership, clinical privileges and corrective action after consideration of the
medical staffs recommendations; provided, however, that the Board of Directors may act in
any event in which the medical staff fails to adopt and submit such recommendations within
the time frame set forth in the rnedical staff bylaws and any supporting documents.
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SECTION 6.2 Delegation. Subject to the ultimate authority of the Board as
set forth in Section 6.1 of these Bylaws and in accordance with legal and accreditation
requirements, the Board of Directors has authority to delegate to the medical staffs of the
facilities operated by the corporation the responsibility for monitoring and ensuring the
quality of care provided in such facilities, making recommendations concerning applications
for appointment and reappointment to the medical staff and clinical privileges, and such
other matters as the Board of Directors in its discretion deems appropriate.
MISCELLANEOUS
SECTION 7.1 Fiscal year. Unless otherwise fixed by the Board of Directors,
the fiscal year of this corporation shall begin on January 1 and end on the succeeding
December 31.
SECTION 7.2 Corporate seal. This corporation shall have no seal.
SECTION 7.3 Amendments. The Bylaws of this corporation may be amended
only as provided in this Section 7.3.
(a)
The Board of Directors may amend the Sections of the Bylaws listed in
Section 2.7(b) of these Bylaws by the approval of at least two-thirds of all
directors ofthis corporation as provided in Section 2.7, provided, however,
that no such amendment shall be effective without the approval of the voting
member.
(b) The voting member may propose amendments to the Sections of the Bylaws
listed in Section 2. 7(b) above, provided, however, that no such amendment
shall be effective without the approval of at least two-thirds of all directors of
this corporation as provided in Section 2.7 of these Bylaws.
(c) Sections of the Bylaws other than those listed in Section 2. 7(b) above may be
amended by the affirmative vote of a majority of the directors present at a
meeting of the Board of Directors at which a quorum is present. Such
amendments shall be effective without approval by the voting member. The
voting member shall have no power to propose amendments to Sections other
than those listed in Section 2. 7(b) above.
(d)
Notwithstanding the foregoing, the voting member may unilaterally amend
any Section of the Bylaws ofthis corporation upon any of the following
events: (i) the Lease between this corporation and the City effective December
31, 2007 terminates for any reason other than as a result of the exercise of the
purchase option set forth in such lease, (ii) continued noncompliance by this
corporation with the Operating Parameters set forth in Sections B, C or D of
Exhibit A attached to these Bylaws at the expiration of the cure period as
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provided for such Operating Parameters, or (iii) the Board of Directors votes
to undertake any action described in Section 2.7(c) or 2.7 (d) of these Bylaws
or to cease all or substantially all the operations of this corporation. The voting
member shall have no power to amend these Bylaws unilaterally in any other.
circumstance.
SECTION 7.4 Authority to borrow. encumber assets. No director, officer,
agent or employee of this corporation shall have any power or authority to borrow money on
its behalf, to pledge its credit or to mortgage or pledge its real or personal property except
within the scope and to the extent of the authority delegated by resolutions adopted from
time to time by the Board of Directors. Authority may be given by the Board of Directors
for any of the above purposes and may be general or limited to specific instances.
SECTION 7.5 Execution of instruments. Deeds, mortgages, bonds, checks,
contracts and other instruments pertaining to the business and affairs of this corporation may
be signed on behalf of this corporation by the President, the Chair, the Vice Chair, or such
other person or persons as may be designated from time to time by the Board of Directors.
SECTION 7.6 Deposit of funds. All funds of this corporation shall be
deposited from time to time to the credit of this corporation in such banks, trust companies or
other depositories as the Board of Directors may approve or designate, and all such funds
shall be withdrawn only in the manner or manners authorized by the Board of Directors from
time to time.
LIMITED MEMBER RIGHTS
SECTION 8.1 Context for Creation of Member Rights. As described in the
Preamble to these Bylaws, this corporation was formed by a community task force, which
believed that this corporation should provide certain limited rights to the City concerning the
commitment of this corporation to continue its mission. This corporation agrees that the City
should receive the benefit of all residual assets should all or substantially all of the assets of
the corporation be sold, merged with, or leased or transferred to others, or should this
corporation cease operations as a health care provider of the type contemplated under these
Bylaws. Although this corporation had no voting members when it was incorporated, the
Board of Directors has determined that it is in the best interests of this corporation to permit
the City to become a voting member solely for the purpose of ensuring that the City receives
the benefit of any residual assets or resources and has the opportunity to approve the final
disposition ofthe corporation's assets or the proceeds from disposition thereof. Accordingly,
these Bylaws confer on the City certain limited member rights which become exercisable
only upon the occurrence of events or Board of Director actions described herein. If or when
those events occur, the City may exercise the membership rights described in these Bylaws.
The City shall have no membership rights other than those described in these Bylaws. The
rights set forth herein require acceptance of such membership rights by action of the City
Council at any time following adoption of these Bylaws.
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SECTION 8.2 Limited Membership Rights. The City shall have the
following membership rights, and only these membership rights:
(a) In the event that the Board of Directors approves an action described in
Section 2.7(a)-(i) of these Bylaws, the City has the power to approve or veto
the action. The action shall not be effective without the approval of the City.
(b) As described in Section 7.3 of these Bylaws, the City has the power to approve
and propose amendments to these Bylaws.
(c) The City may sell or transfer its membership rights to this corporation or to a
third party, but only if such sale or transfer is approved in advance by at least
two-thirds of the directors of this corporation. The consideration given in
exchange for such membership rights will be determined by the parties to the
transaction, but in any event, is wholly unrelated to any purchase option or
payment obligations set forth in the Lease.
SECTION 8.3 Resignation. The City may resign one or more of its
enumerated membership rights at any time, but shall not have the right thereafter to reinstate
such rights.
SECTION 8.4 Dues. This corporation shall not have the right to impose dues,
assessments or fees on the City without the consent of the City.
SECTION 8.5 Dividends. The City shall have the right to receive dividends as
a member. (Dividends are not contemplated, however, the tool is available if
extraordinary/windfall circumstances arise, should the board ever choose to use it.)
SECTION 8.6 Member Meetings. This corporation shall not be required to
hold annual meetings of the member as a result ofthe limited membership rights set forth in
Section 8.2 of these Bylaws.
tb.us.J284955.26
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BYLAWS
EXHIBIT A
Operating Parameters, and Effects of Default
The corporation and the City (as a limited member) have agreed that the corporation will
exceed certain performance parameters and fundamental standards set forth in Sections A, B,
C and D, below (collectively, the "Operating Parameters").
On or before the ls0th day after the end of this corporation's Fiscal Year, this corporation
will submit to the City its computations and certification of compliance with each of the
Operating Parameters set forth in Sections A and B, based on financial results audited by a
firm of qualified Certified Public Accountants.
Section A
If this corporation is not in compliance with any of the Operating Parameters set forth in this
Section A when such computations are due, this corporation shall provide a written plan
detailing how it will satisfy the Operating Parameters in this Section A within a reasonable
time period specified by the City (the "Workplan"). The City may also require this
corporation to engage, within forty-five (45) days of the City's written notice, a management
consultant mutually selected by the City and this corporation (the "Consultant") for the
purpose of reviewing the deficiency and making recommendations regarding the operation
and administration of the health care system. This corporation shall give full and prompt
consideration to the Consultant's recommendations and, to the fullest extent feasible and
consistent with this corporation's charitable mission, its obligations under this Agreement,
and the interests of the community it serves, this corporation shall undertake its best efforts
to implement such recommendations. Notwithstanding the foregoing, this corporation shall
take no action pursuant to its Workplan or in response to the Consultant's recommendations
that would jeopardize this corporation's sOI(c)(3) status, compliance with bond covenants
under any Existing Bonds or Future Bonds, or its adherence to legal, regulatory or
accreditation standards and requirements. So long as this corporation fails to comply with
any of the Operating Parameters set forth in Section A, the corporation will provide to the
City, not later than on the last day of each fiscal quarter, or at such other interval as the
corporation and the City may agree, a letter from the Consultant (if engaged) to the effect
that in his or her judgment, this corporation is implementing such recommendations in
orderly fashion.
(I) Maximum Annual Debt Coverage Ratio of at least 1.3 times.
(2) Cash to Debt Ratio of at least 50 percent.
(3) Days Cash on Hand of60 days.
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(4) Operating Margin of at least 1.5 percent in at least 1 of the last 2 Fiscal Years.
Section B
If the corporation is not in compliance with the Operating Parameters set forth in this Section
B, or fails to submit its required computations and certification of compliance with the
Operating Parameters, then no later than one hundred twenty (120) days from its receipt of
such computations and certification, or in the event of a failure to submit such computations
and certifications, no later than one hundred twenty (120) days from their due date, the City
may provide written notice to the corporation that its voting member'S amendment rights set
forth in Section 7.3(d) shall be effective as of such 120th day. The failure to provide such
notice in anyone Fiscal Year shall not constitute a waiver of the City's notice and member
amendment rights in any subsequent Fiscal Year in which the corporation is not in
compliance with the Operating Parameters set forth in this Section B, or fails to submit its
required cornputations and certification of compliance.
(1) Maximum Annual Debt Coverage Ratio of at least 1.15 times in at least 1 of the last 3
Fiscal Years.
(2) Cash to Debt Ratio of at least 30 percent.
(3) Days Cash on Hand of 45 days.
(4) Operating Margin of at least 1.5 percent in at least I of the last 3 Fiscal Years.
Section C
If at any time, this corporation is not in compliance with any of the Operating Parameters set
forth in this Section C, following either (i) a period equal to the cure period stated in the
notice from the applicable agency threatening revocation of authority or applicable statute or
regulation with respect thereto, or (ii) ifno specific cure period is provided by any such
notice, statute, or regulation, a period of thirty (30) days from the date of the notice or actual
knowledge ofthe event which resulted in the noncornpliance, then no later than one hundred
twenty (120) days from the close of such cure period or the date of such notice or knowledge
of the event, as applicable, the City may provide written notice to the corporation that its
voting member's amendment rights set forth in Section 7.3(d) shall be effective as of such
I 20th day; provided, however, that the aforementioned cure periods will be tolled during any
period in which both (i) the corporation complies with the applicable administrative and/or
legal process necessary to challenge or appeal the noncompliance or noncompliance
determination, and (ii) during the pendency of such challenge or appeal, and before final
determination ofthe matter, the corporation continues to have authority to provide care and
to bill and collect payment for the services rendered to all its patients for whom, otherwise,
the noncompliance would prohibit the corporation from billing and collecting for services
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provided to such patients. The failure to provide such notice in anyone Fiscal Year shall not
constitute a waiver of the City's notice and member amendment rights in any subsequent
Fiscal Year in which the corporation is not in compliance with the Operating Parameters set
forth in this Section C.
(a) The corporation shall obtain such licenses from the Minnesota Department of Health
as are necessary to operate in accordance with its Fundamental Nature, including a
hospital license, and maintain such licenses in good standing.
(b) The corporation shall comply with all applicable Medicare conditions ofparticipation
or submit and implement corrective action plans satisfying same (or the federal
govemrnent's primary health insurance program from time to time if the existing
Medicare program is supplanted at any time).
(c) The corporation shall obtain and maintain the health care system accreditation by the
relevant state survey agency or the Joint Commission.
(d) The corporation shall maintain tax-exempt status as an organization described in
Section sOI(c)(3) of the Internal Revenue Code, as amended.
(e) At all times, the corporation shall be authorized and permitted to bill and collect for
the provision of hospital and clinic services to patients under such government
programs by which they are covered and services to members of the general public.
Section D
If the corporation is not in compliance with the Operating Parameters set forth in this Section
D, then no later than one hundred twenty (120) days from its receipt of notice with regard to
a default under paragraph I or deficiency under paragraph 2, the City may provide written
notice to the corporation that its voting member's amendment rights set forth in Section
7 .3( d) shall be effective as of such 120th day. The failure to provide such notice in anyone
Fiscal Year shall not constitute a waiver of the City's notice and member amendment rights
in any subsequent Fiscal Year in which the corporation is not in compliance with the
Operating Parameters set forth in this Section D.
(1) Compliance with any financial covenants made by this corporation in connection with
any future outstanding debt of the corporation issued as described in Section 17.10 of
the Lease, which, if not complied with, would constitute an event of default; provided
that this corporation shall be considered compliant during any period with respect to
which the lender, or trustee acting on its behalf, has waived all defaults.
(2) This corporation shall always operate such that the City is within the Hospital's
Geographic Service Area as defined in Section 1.1 ( c) of these Bylaws.
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Amendments
The parties acknowledge that the Operating Parameters have been designed as indicators of
financial or quality jeopardy under current market conditions. It is also acknowledged that
the Operating Parameters are also based on Generally Accepted Accounting Principles
("GAAP") that currently exists. This corporation and the City shall, from time to time,
amend the Operating Parameters as necessitated by changes in GAAP and market conditions
in order to maintain their status as indicators of financial or quality jeopardy, taking into
consideration the performance of similarly situated nonprofit corporations having
comparable operations to this corporation's.
Certain Definitions:
Cash To Debt Ratio: For any Fiscal Year, shall mean the ratio of (I) Unrestricted Liquid
Funds of the corporation to(2) the Long-Term Debt less cash or investments restricted under
any Indenture (that has been excluded from Unrestricted Liquid Funds) ofthe corporation, all
as shown in the audited financial statements of the corporation for any Fiscal Year.
Days Cash on Hand: means the result of dividing the Unrestricted Liquid Funds of the
corporation by daily operating expenses. Daily operating expenses is computed by dividing
Total Operating Expenses less depreciation and amortization expense for such Fiscal Year by
the number of days in that Fiscal Year.
Existing Bonds: The following bonds issued by City: General Obligation Medical Facilities
Revenue Refunding Bonds, Series 1997B; General Obligation Medical Facilities Revenue
Refunding Bonds, Series 1998A; General Obligation Taxable Medical Facilities Revenue
Refunding Bonds, Series 1998B; Taxable Medical Facilities Gross Revenue Bonds, Series
1998; General Obligation Medical Facilities Revenue Bonds, Series 2002D; and General
Obligation Medical Facilities Revenue Bonds, Series 2003A.
Future Bonds: Any indebtedness of the corporation that is entered into on or after the
December 31, 2007 effective date of the Lease between the City and the corporation.
Fiscal Year: Each 12 month period ending on the date specified in the Bylaws of this
corporation. Currently, the fiscal year ends on December 3 I.
Generally Accepted Accounting Principles (GAAP): GAAP is the standard framework of
guidelines for financial accounting, as established in the United States of America. It
includes the standards, conventions, and rules accountants follow in recording and
summarizing transactions, and in the preparation of financial statements. GAAP for this
purpose means those guidelines and rules applicable to this corporation.
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Long-Term Debt: All obligations which appear as a long-term liability on this corporation's
financial statement in accordance with GAAP, including but not limited to revenue bonds,
capital leases, bank or installment debt, and contracts for deed, plus or minus any amounts
for unamortized discounts/premiums or deferred losses on refunding. However, Long-Term
Debt excludes the debt to the City related to the payment required in Section 3.1 of the Lease
Agreement.
Maximum Annual Debt Coverage Ratio: Net Revenues for a Fiscal Year divided by the
Maximum Annual Principal and Interest Requirement due in future fiscal years. The ratio is
to be computed based on this corporation's audited financial statements. For any
computation that requires reference to one or more Fiscal Years prior to the effective date of
the Lease Agreement, the ratio is to be computed using the Net Revenues and Maximum
Principal and Interest Requirement from the applicable Fiscal Year audited financial
statements of the City enterprise Hutchinson Area Health Care.
Maximum Annual Principal and Interest Requirement: The sum of the maximum
principal and interest payments required to be paid in any future Fiscal Year on Long-Term
Debt. If a Long-Term Debt issue has a balloon payment, for the purposes of this
computation that balloon payment is to be amortized over a period of years equal to the
lesser of30 years less the total number of years that the issue has been outstanding (from
inception) prior to the date of the balloon payment, or the remaining useful life of the asset
being financed. For purposes of the preceding sentence, the "remaining useful life" shall be
defined as the number of years remaining until the asset is fully depreciated per the
depreciation schedule maintained by the corporation in accordance with GAAP. The interest
rate to be applied during this period is equal to the rate required to be paid on the issue in the
fiscal year preceding the balloon payment. The principal and interest amortization for the
Fiscal Years including and subsequent to the balloon payment is to be computed assuming an
equal annual amortization. If Long-term Debt includes a debt issue that has a variable
interest rate, for purposes of computing future year interest requirements, the interest rate to
be used is the rate in effect at the end of the Fiscal Year for which this computation is being
made.
Net Revenues: The aggregate of all operating and nonoperating revenues less Total
Operating Expenses, except excluding (I) depreciation (2) amortization and (3) interest
expense of this corporation, all determined in accordance with GAAP, for a Fiscal Year.
However, Net Revenues are to exclude any (I) contribution or investment income that has
been restricted by its donor for endowment (permanently restricted) purposes (2) unrealized
gains and losses on investments (3) extraordinary or non-recurring items including gains or
losses on refinancing, extinguishment of indebtedness, gains or losses of sales or other
dispositions of property not in the ordinary course of business.
Operating Margin: The sum of Total Operating Revenues less Total Operating Expenses
divided by Total Operating Revenues for a Fiscal Year. The ratio is to be computed based on
this corporation's audited financial statements. For the two Fiscal Years immediately after
the effective date of the Lease Agreement, the prior year(s) ratio is to be computed using the
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Total Operating Revenues and Total Operating Expenses from the applicable Fiscal Year
audited financial statements of Hutchinson Area Health Care.
Total Operating Expenses: All expenses reported as operating expenses, in accordance with
GAAP, that this corporation reports for a Fiscal Year, including (I) depreciation (2)
amortization and (3) interest expense.
Total Operating Revenues: All revenues reported as operating revenues, in accordance
with GAAP, that this corporation reports for a Fiscal Year excluding any (I) contribution or
investment income that has been restricted by its donor for endowment (permanently
restricted) purposes (2) unrealized gains and losses on investments (3) extraordinary or non-
recurring items including gains or losses on refinancing, extinguishment of indebtedness,
gains or losses of sales or other dispositions of property not in the ordinary course of
business.
Unrestricted Liquid Funds: means (i) unrestricted cash, (ii) cash equivalents, (iii) escrow
funds, if any, under that certain Escrow Agreement effective December 31,2007 by and
between this corporation and the City of Hutchinson, and (iv) board designated marketable
debt and equity securities, but excluding and exclusive of: (I) all trustee-held funds; and (2)
borrowed funds that are entrusted with a lender.
fb.lls.1284955.26
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HAHC DRAFT
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RESTATED ARTICLES OF INCORPORATION
OF
HUTCHINSON HEALTH CARE
ARTICLE I
The name of this corporation shall be:
Hutchinson Health Care
ARTICLE II
This corporation is organized and shall be operated exclusively for charitable,
scientific, public, and educational purposes. In furtherance of its purposes, this corporation
may engage in, advance, promote, support and administer charitable, scientific, public, and
educational activities and projects of every kind and nature whatsoever in its own behalf or
as the agent, trustee or representative of others. All the powers of this corporation shall be
exercised only so that this corporation's operations shall be exclusively within the
contemplation of Section 501 (c)(3) of the Internal Revenue Code. All references in these
Articles of Incorporation to sections of the Internal Revenue Code are to the Internal
Revenue Code of 1986 and include any provisions thereof adopted by future amendments
thereto and any cognate provisions in future Internal Revenue Codes to the extent such
provisions are applicable to this corporation.
ARTICLE III
This corporation shall not afford pecuniary gain, incidentally or otherwise, to
its members, if any, other than the City of Hutchinson, Minnesota. No part of the net income
or net earnings of this corporation shall inure to the benefit of any member, private
shareholder or individual, other than the City of Hutchinson, Minnesota. Except as permitted
by Minnesota Statutes, Section 317 A.sOl, this corporation shall not lend any of its assets to
or guarantee the obligation of any officer, director, or employee of this corporation, or a
member of the family of such a person. Nothing herein shall be construed to establish or
prohibit the payment of reasonable compensation to any person for services actually rendered
by such person to this corporation.
ARTICLE IV
No substantial part of the activities of this corporation shall consist of carrying
on propaganda or otherwise attempting to influence legislation. This corporation shall not
participate in or intervene in (including the publishing or distributing of statements) any
political campaign on behalf of (or in opposition to) any candidate for public office.
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ARTICLE V
The period of duration of this corporation's existence shall be perpetual.
ARTICLE VI
The registered office of this corporation shall be located at 1095 Highway 15
South, Hutchinson, MN 55350.
ARTICLE VII
The City of Hutchinson, Minnesota shall be the sole voting member of this
corporation, and shall have only the membership rights described in the Bylaws of this
corporation. The Board of Directors may establish one or more classes of non-voting
members upon such conditions and terms as it from time to time deems appropriate.
ARTICLE VIII
The management and direction of the business of this corporation shall be
vested in a Board of Directors. The number, term of office, powers, authority and duties of
members of the Board of Directors, the time and place of their meetings, and such other
regulations with respect to them as are not inconsistent with the express provisions of these
Articles of Incorporation shall be as specified from time to time in the Bylaws of this
corporation. Any action required or permitted to be taken at a meeting of the Board of
Directors may be taken by written action signed by all the directors.
ARTICLE IX
This corporation shall have no capital stock.
ARTICLE X
The directors and officers of this corporation shall not be personally liable for
the debts or obligations of this corporation of any nature whatsoever, nor shall any of the
property of the directors or officers be subject to the payment of the debts or obligations of
this corporation to any extent whatsoever.
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ARTICLE XI
These Articles of Incorporation may be amended from time to time in the
manner provided by law; provided, however, that during the term of that certain operating
lease of substantially all of the operating assets of this corporation with the City of
Hutchinson, Minnesota, no amendment to the Articles of Incorporation will be effective
without the approval of the City of Hutchinson, Minnesota as required by Section 2.7(a) of
the Bylaws of this corporation.
ARTICLE XII
This corporation may be dissolved in accordance with the laws of the State of
Minnesota; provided that any special notice and approval requirements described in the
Bylaws of this corporation are met. In the event of the dissolution of this corporation any
surplus property remaining after the payment of its debts shall be disposed of by transfer to
the City of Hutchinson, Minnesota, or its successor, to be held and used exclusively for the
charitable, scientific, public, or educational purposes of this corporation or other purposes of
the City of Hutchinson, Minnesota as the City Council may determine; provided, however,
that if the City of Hutchinson, Minnesota declines to accept all or any part of said surplus
property, then said surplus property shall be disposed of by transfer to one or more
corporations, associations, institutions, trusts, or foundations organized and operated for one
or more of the purposes of this corporation, and described in Section sOI(c)(3) of the Internal
Revenue Code of 1986, or to the State of Minnesota or any political subdivision or agency
thereof for exclusively public purposes, in such proportions as the Board of Directors of this
corporation shall determine. Notwithstanding any provision herein to the contrary, nothing
herein shall be construed to affect the disposition of property and assets held by this
corporation upon trust or other condition, or subject to any executory or special limitation,
and such property, upon dissolution of this corporation, shall be transferred in accordance
with the trust, condition or limitation imposed with respect to it.
Ml:1284899.03
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Ordinance No. 07-0470
AN ORDINANCE APPROVING ARTICLES OF INCORPORATION AND RESTATED BYLAWS OF
HUTCHINSON HEALTH CARE
WHEREAS, as a result of 3 years of analysis, public input and consultation with health care experts,
the City and Hospital agree that at the current time it is in the best interest of the residents of Hutchinson and
the surrounding area that the Hospital be governed by a not-for-profit organization under Internal Revenue
Code Section 50I(c)3; and,
WHEREAS, a non-profit corporation, Hutchinson Health Care, has been created to serve as the governing
entity to serve the health care needs of the Hutchinson area and,
WHEREAS, the City of Hutchinson will continue to be a part of Hutchinson Health Care through
membership rights and the Board of Directors of Hutchinson Health Care the Articles of Incorporation and the
bylaws of Hutchinson Health Care, the City Council of the City of Hutchinson must approve said Articles and
Bylaws,
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON,
THAT THE ARTICLES OF INCORPORATION AND RESTATED BYLAWS OF HUTCHINSON
HEALTH CARE AS A TT ACHED AS EXHIBIT A AND B TO THIS ORDINANCE IS HEREBY ADOPTED
BY THE CITY COUNCIL AND THAT THIS ORDINANCE SHALL BE EFFECTIVE UPON
PUBLICATION.
Signed this
day of
,2007,
Attest:
Gary D. Plotz, City Administrator
Steven W, Cook, Mayor
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MEM()I{ANDlJ~1
DATE: August 22, 2007, for the August 28,2007, City Council Meeting
TO: Hutchinson City Council
FROM: Rebecca Bowers, AICP, Planning Director
SUBJECT: Request for Special Joint Council and Planning Commission Workshop for the
Highway 7 Corridor Study on October 9th at 4:00 p.m.
Staff is requesting a joint Council and Planning Commission workshop to review progress on the Highway
7 Corridor Study on October 9th at 4:00 p.m.
The Advisory Panel and staff have been providing feedback on the study, however at this point we feel it is
critical to review progress and obtain feedback from the Council and Planning Commission before the
concept plans and recommendations are developed for the final open house this fall. There would be some
additional cost beyond the original contract for reimbursement for staff hourly rates and expenses for the
workshop, however staff will work to minimize the cost. There are additional funds available from the
Highway 7 project planning fees fund to pay for the workshop.
The corridor study schedule and notes from the last Advisory Panel meeting are attached for the Council's
information. The next advisory panel meeting will be held on September 20th.
Attachments: Project Schedule
Meeting Notes from July 12, 2007 Advisory Panel
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Proposed Schedule
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LANDFORM
Task I: Establish Communlt Vision
Gather and Review Past Plans. Existing Camp Plan, Zoning, and Ordinances; sel-
up background maps, ale
Kick-off Meeting with Staff - workplan, schedule AP mtgs, public open house
Conduct Physical.visual Survey (walk, photo. map), land Use Inventory
Kick-off and Visioning Meeting with Advisory Panel
Prepare presentation of Analysis - physical. visual, land use, needs, issues
Prepare for Open House - sign-in sheets, comment.survey materials
Conduct Public Open House wlvislJal and priorities survey. interviews
Define Goals-Objectives, Needs and Priorities
Prepare Vision Slatement . document Vision Process and Guiding Concepts
Add'l Review Meetings with Slaff . teleconference? (2)
SIaff 10 Updale CDC, Planning Commission and City Council
Task 2: Land Use Oevelo ment Strate
Conduct Market Analysis. Focus on Feasibility/Strategies for Achieving Vision
Based on Inventory - Identify Opportunities for Development/Redevelopment
Organize Draft Land Use Plan based on Vision and Market Analysis
Review Markel Analysis and Opportunities with Advisory Panel
Identify Potential Impacts on Existing Utilities
Identify Potential Transportation Needs, Consider MnDaT Hwy Access Policy
Develop Concepts (2-3) for Hwy 7 and 15 intersection redevelopment
Develop recommendations for Design Guidelines, Improvement, Zoning changes
Recommend Improvements: Safety, Traffic, Connect- PedestrianlBikelTransit
Review Redevelopment Concepts & Recommendations with Advisory Panel
Review Meetings with Staff - teleconference? (2)
Staff 10 Update COC, Planning Commission and City Council
Task 3: Present the Plan
Document and Communicate the Vision and Recommendations
Prepare Graphics and Maps (Boards, Plan Document and digital Web-ready)
Publish Draft with Graphics for Staff Preliminary Review
Prepare materials for Public Open House
Conduct Public Open House
Make Plan Revisions (one round, text primarily)
Review Meetings with Staff - teleconference? (2)
Present Plan to CoC/Planning Commission and City Council
2001
Au ust
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LANDFORM
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M INN EA PO LIS, PHO EN IX
City of Hutchinson
Hwy. 7 Corridor Study
MEETING NOTES
800C BUTLER SQUARE
100 NORTH SIXTH STREET
MINNEAPOLIS, MN 55403
OFFICE: 612.252.9070
FAX: 612.252.9077
DATE 12-Jul-Q7 TIME
PURPOSE OF MEETING
ATTENDEES
Rebecca Bowers
Dolf Moon
Miles Seppelt
Lynn Otteson
Chris Kovacic
Jean Ward
Jim Haugen
Jennifer Zierke
Carolyn Krall
Matt Mullins
Hutchinson City Hall
10:00 Am LOCATION
Advisory Panel Meeting #2
REPRESENTING
City of Hutchinson
City of Hutchinson
City of Hutchinson
Chair, City of Hutchinson Planning Com.
City of Hutchinson Planning Commission
Hutchinson HRA
City of Hutchinson City Council
Landform
Landform
Maxfield Research
PHONE # EMAlL
RBowers@ci.hutchinson.mn.us
DMoon@ci.hutchinson.mn.us
MSeppelt@ci.hutchinson.mn.us
jzierke@landfonnmsp.com
ckrall@landformmsp.com
mmullins@maxfieldresearch.com
MEETING
SUMMARY:
Proiect Schedule:
The schedule to date was reviewed. The Landform Team has completed Task 1 and is part
way through Task 2. (see AP meeting date on schedule chart)
.
ODen House Overview:
An overview of the results of the Open House was discussed. Generally, attendees felt that
Highway 7 was a place to move through but would prefer that It was a place people will
stop, shop and enjoy the natural amenities. Attendees placed dots on images that they
liked, including parks and trail connections; additional commercial uses; and historic
architecture.
Communitv Vision:
Based on input at the Open House, a vision statement with specific goals and objectives
were developed. The vision statement and goals focus on the unique qualities of
Hutchinson, including the small-town atmosphere; historic riverfront; parks and trails;
creating a destination; and providing a safe place to work, shop, visit and live.
The vision statement and goals reinforce past goals identified in the 2002 Comprehensive
Plan and in the more recent Downtown Planning Study (this should be explicitly stated and
previous planning studies referenced). Concern was raised about the costs of
implementation.
Market Analvsis:
A review of the draft Market Analysis was provided and reviewed. The study shows that
about 20% of the uses along Highway 7 are currently auto-related. Some of the strengths
of the corridor area are the high traffic counts for retail uses; additional growth of population
to support retailers; and the positive long term impacts of the Highway 7 improvements.
The weaknesses of the study area include competition with big box retail to the south on
Highway 15; incompatible land uses; and limited vacant land for development.
.
The Market Analysis supports additional multiple family housing units, office and retail
Page 1
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August 23, 2007
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uses. There is a demand for neighborhood retail and professional services. Upper-end
housing -- luxury rental, active senior housing and townhomes are also recommended.
Additional market-supporting priorities for the corridor were identified as: redevelopment of
the Highway 7 and Highway 15 intersection, connecting Highway 7 to the natural amenities
and downtown, and addressing incompatible uses.
The term "incompatible land uses" was discussed. Properties along the corridor that are
adjacent to noncompiementary uses were identified (i.e. an industrial use next to a
residential use). It was noted that industrial uses with a lot of outside storage for example,
may discourage new retaii commercial uses, reducing new investment in the corridor.
Land Use Planninq: Opportunity Sites
Boards (in draft form) illustrating Opportunity Sites and potential changes to the Land Use
maps and Zoning maps were presented and discussed.
The "Highway 22 gateway" was identified as one gateway along the eastern edge of
Hutchinson that offers future development opportunities that should be better defined by
zoning.
A secondary gateway can be identified as you approach the City, where the road turns (at
the new REMAX building) and drops into the City, offering views towards downtown. The
south side of the highway (currently apartments and a few houses, some of which are used
by businesses) provides opportunities for connections to the Luce Line trail and is
appropriate for higher density housing. Along the Highway frontage there may be more
opportunities for new mixed use (housing and commercial).
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The Highway 7 and Highway 15 intersection is the next gateway to the downtown. There
could be design standards developed to identify and reinforce the "Main Street" connection.
There may be opportunity for luxury condos in this location, and consideration should be
given to a 'backage' road system on the north side, to provide access suitable for mixed
use or more commercial uses. Along Highway 7 there are also a lot of single family
residences which are very close to the busy highway, with driveways which present safety
concerns. These areas may eventually offer opportunities for commercial development.
On the south side of the corridor, there is opportunity for redevelopment of the Cenex site
and the area adjacent. Due to floodplain issues, additional parcel assembly may be critical
for redevelopment to work.
The extension of Montana may provide an opportunity for redevelopment as well,
depending on how the road connections are made. Just to the east (east of the office
building) are several underused parcels facing the highway (storage or industrial buildings,
some vacant).
At the western edge of the project area on the north side, a vacant parcel zoned residential
provides a future corner commercial development. There are several areas on the north
side of the Highway which offer opportunities including vacant sites, several car sales lots
and a couple of larger residential parcels (some may already be used for commercial) with
commercial parcels on either side. In these locations, the lower traffic counts and the more
limited access are more appropriate to service commercial than to retail uses.
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At the western edge of the project area near the Old School Road intersection (on the
south side) is an opportunity site (vacant Wendys, bowling alley, etc) which might be
suitable for restaurant and entertainment uses or higher density-housing adjacent to the
park and trails.
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August 23, 2007
Land Use PlanninQ: Land Uses and Zoning
The discrepancies between the future land use and current zoning should be addressed,
and spot zoning/rezoning discouraged.
The zoning districts that provide striclly conditional uses and no permitted uses are more of
a hinderance to well planned redevelopment than a tool to control redevelopment.
Amending the language of these districts to define allowable uses (and allow for mixed
use) will also present opportunities. It may make sense to phase out the IIC zone over time.
Also, a large number of properties are zoned C-4, "commercial fringe" which should
perhaps should be broadened to allow for a wider range of commercial uses. The other
applicable "C" zones should also be reviewed. .
The possibility of a river overlay district, to incorporate some of downtown's historic
guidelines close to the Highway 7 and Highway 15 intersection was also discussed.
The draft maps were left with the City for their review. Recommendations for alterations to
the zoning and land use maps will be reviewed in detail with Rebecca in the next
conference call, and included in Landform's recommendations for the final plan.
Next SteDs:
Landform will hold conference calls with Rebecca on July 26 and August 23. The next
meeting will be held on Thursday, September 20 at1 0:00am at Hutchinson City Hall.
ACTIONS: TEAM MEMBER
Matt Mullins
TASK
Estimate area supportable for business/industrial park
type uses; couid attract new businesses or relocation of
uses on opportunity sites where future mixed-use of
housing is anticipated
DEADLINE
Rebecca
Bowers,
Jennifer Zierke,
Carolyn Krall
Review questions-recommendations for revisions to the
zoning and land use maps - discuss at next conference
call
7/26/2007
2:00 PM
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'MEMORANDUM
DATE:
TO:
FROM:
August 22, 2007 for the Au,gust 28, 2007 City Council meeting
Hutchinson ,City Council
Rebecca Bowe'rs~ AICP, Planning Director
SUBJECT: LOT SPLIT AT 1316 DE'L.AWARE STREET TO CREATE A NEW LOT WITHIN
THE SHORE LAND DISTRICT ANI;) FLOOD PLAIN
Ba,ckaround:
The property owner is requesting a lot split for property loCated at 1316 Delaware Street in
order to construct a single family home on a new lot east of the existing h~ome.. The property is
located within the shoreland district of the South Fork of the Crow River and is within in the 100'
year flood plain. Add,itional information is contained in the attached Planning Commission staff
report and attachments.
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Plann'ina Commission MeetinQs:
The Planning Commission first considered the rt3.quest at their July 17 t 20,07, meeting,
how~ver the item was table,d until the August 21 5t mee'tin'9 in order for the applicant to
provide additional information as the Commission discussed the proposal at length.
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City Council Memo
August 28, 2007
Ken Cote Lot Split
1316 Delaware St. NW
Page 2
Details on the July 17th meeting discussion is included in the attached staff report to the
Commission.
At the August 21st meeting, the Commission discussed the drawing provided by Mr. Cote
showing an example of the proposed post and girder construction to elevate the home out
of the 100 year flood plain. Mr. Cote did not attend the meeting, however provided a
drawing as an example. If the lot split is approved, he will need to hire an architect and
engineer to design the structure to meet requirements. He also provided the proposed
impervious surface coverage on the lot, which would be approximately 24% and would meet
the 25% maximum allowed.
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The Commission discussed whether the lot split should be allowed with the detached garage
on the new lot. The detached garage is considered non-conforming as it does not meet the 50'
structure setback required in the shoreland district ordinance. Additionally, accessory
buildings are not allowed without the house as a primary structure. The Commission
discussed previous problems in allowing a lot split with an accessory building on a lot, in which
no home was later constructed on the lot. Additional discussion occurred on requiring the
garage to be removed prior to the lot split being approved and recorded at the County. The
Commission stated that removing the nonconforming garage should be required as a condition
of approving the lot split for the new home. A larger attached garage could also be
constructed by the applicant if needed.
Also discussed was the recommendation for denial by the DNR (letter attached) and
whether the city should allow the creation of new residential lots and homes to be built
within the 100 year flood plain. The Commission also discussed if there was any
regulations to preserve views of the lake. Staff stated there is a 25' building height
maximum allowed in the shoreland district, but no other regulations to preserve views. The
building height is defined as:
"the vertical distance between the highest adjoining ground level at the building or
10' above the ground level, whichever is lower, and the highest point of a flat roof or
average height of the highest gable of a pitched roof'.
The applicant will need to consider this requirement in the design of the home. As no
building plans have been provided yet, staff could not review this requirement.
Information from Applicant after the Meetina:
As the applicant did not attend the meeting, staff has advised the applicant that the
Commission recommended approval, subject to removing the garage first. The applicant
objects to removing the garage and will be at the Council meeting to request the garage to be
allowed to be remain on the proposed lot.
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City'Council Memo
August '28, 2007
Ken Cbte Lot Split
1316, Delaware St. NW
Page 3
Recommendation:
The Planning Commission recommended approval of the lot split, with the state.d findings and.
conditions' in the attached resolution., including removal of the detached garage.
View showing the existing detached garage on proposed lot
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DIRECTORS REPORT - PLANNING DEPARTMENT
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From:
Hutchinson Plan.Ding Commission
Rebecca Bowers, .AICP, Planning Director
August 8, 2007, for Angust 21, 2007, Planning Commission Meeting
(Tabled from ti,e July 111' nzeetil'g)
Application: LOT SPLIT AT 1316 DELAWARE ST.REET TO CREATE A NEW LOT
WIT'DIN TIlE SHORELAND DISTRICT AND FLOOD PLAIN
D'ate:
To:
Applicant
Kenneth Cote, Property owner
LOT SPLIT
Brief DescriptioD
The property owner is requesting a lot split for pro:perty located at 1316 Delaware Street in order
to construct a sin.gle fanlily home on anew lot east of the existing home. The pro'perty is located
within the shoteland district of th,e South Fork of the Crow River and. is within in the 100 year
flQod plain. This oitem was discussed at the July 17th Commission meeting, however was tabled
to allow the applicant time to provide information to address con.cems of the Commission.
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Staff Report - August 21, 2007
Lot Split -1316 Delaware St. NW
Kenneth Cote
Page 2
. Existing Zoning:
Property Location:
Lot Size:
Existing Land Use:
Adjacent Land Use
And Zoning:
Comprehensive
Land Use Plan:
Zoning History:
Applicable
Regulations:
Transportation:
. Analysis and
Recommendation:
GENERAL INFORMATION
R2 ( Medium Density Residential)
1316 Delaware St. NW
Northwesterly parcel- 15,100 sq. ft.
Southeasterly parcel- 17,600 sq. ft.
Single Family Residential
R2 (Single and Two Family Residential)
Traditional Residential Neighborhood
The properties within the Riverside Addition were platted in 1968.
Section 152 and 154.057 of the City Code
Delaware St. N.W.
The following information was provided in the July 17th Commission report:
The subject property is located along the South Fork of the Crow River and within the 100 year
flood plain. The proposed lot split was submitted to the DNR Area Hydrologist for review.
Hydrologist Rob Collett reviewed the request and recommends denial of the lot split to create a
new lot within the 100 year flood plain (letter attached). The survey shows that there is no
location where a home can be built with natural ground above the 100 year flood elevation. As
stated in the letter from the DNR, "The City has worked very hard together with the DNR in
eliminating structures in the jloodplain. It seems contrary to long-term efforts to allow a lot split
in the flood plain." He also states:
"Subdividing this lot is not consistent with MN Ru/es 6120.3500 subpart 1. Land Suitability:
Each lot created through subdivision must be suitable in its natural state for the proposed use
with minimal alteration. Suitability analysis by the local unit of government shall consider
susceptibility tojlooding... or any other feature of the natural/and likely to be harmful to the
health, safety, or welfare of future residents of the proposed subdivision or of the community ".
The proposed lot split was reviewed by City staff at the April23rd planning staff meeting and
was recommended for denial due to the strong objection by the DNR. At the staffrevie:w
meeting, staff discussed the long term negative impacts of creating new lots and residences
within the flood plain, echoing the concerns of the DNR Area Hydrologist.
.
, bCcjJ
Staff Report - August 21, 2007
Lot Split -1316 Delaware St. NW
Kenneth Cote
Page 3
.
After providing the review letter from the DNR recommending denial, the applicant provided a
60 day time waiver and requested delaying consideration of the lot split at the Planning
Commission until additional information on construction methods could be provided to the City.
If the flood plain and DNR concerns can be addressed, staff notes that the proposed lot size and
dimension requirements of the shoreland district would be met as follows:
Shoreland District Proposed
Reouirements
Lot Area 15,000 sq. ft. Northwesterly: 15,100 sq.ft
Southeasterly; 17,600 so. ft
Lot Width 75 ft. Northwesterly: 115 ft.
Southeasterly; 100 ft.
In researching the existing plat, staff discovered that the street lies within an Outlot (Outlot A)
that is divided among adjacent property owners and hasn't been deeded to the City. The deed
for the subject property shows a shared 1/3 interest in Outlot A. Staff is recommending that area
containing Delaware Street from Hwy 7, including Outlot A, either be deeded to the City or
Riverside Addition be replatted to show appropriate right of way for a public street.
The applicant recently advised staff that he would use a post and girder construction method to
elevate the structure above the flood plain elevation. Staff has requested additional information
on building plans for review by the Building Official
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Discussion and Information Provided after Planning Commission Meeting:
At the Commission meeting, the Commissioners brought up concerns regarding residential
construction in the floodplain, shoreland district requirements, and allowing a detached garage
on a lot before a primary structure is constructed. Also discussed was the need for additional
information on the construction methods, drawings of the structure, and square footage of
proposed buildings and impervious surface coverage.
Since the meeting, the applicant provided impervious surface coverage calculations showing that
the coverage on the proposed lot would be 23.8%, which would meet the shoreland district
coverage maximum of 25%. The calculations are based upon a drawing provided by the
applicant and are not surveyor's calculations. Ifthe lot division is approved, an updated
certified survey would be required.
The applicant has provided a sample drawing showing the proposed foundation system, which
includes a precast concrete plank, girder and pilings along with some general information about
pilings. The building official has indicated that the plans are not sufficient for review and that
an Engineer must be hired to prepare plans. The applicant states in his letter that he will hire an
engineer to provide the required building plans for the soil conditions if the split is approved.
.
If the Commission finds the lot split should be approved, staff notes the following conditions
should be included in the recommendation to the City Council:
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Staff Report - August 21, 2007
Lot Split-13I6 Delaware St. NW
Kenneth Cote
Page 4
. 1.
2.
3.
4.
Construction on both lots shall comply with the shoreland district and requirements of the
R-2 Zoning district. No variances are granted or implied.
Lot split shall be recorded at the County prior to issuance of any building permit.
Impervious surface shall not exceed 25% on either lot. A survey documenting all
impervious surface coverage will be required prior to issuance of any building permit,
The area containing Delaware Street from Hwy 7, including Outlot A, shall either be
deeded to the City or Riverside Addition be replatted to show appropriate right of way for
a public street.
5. SACIWAC fees in the amount of$2,9s0 must be paid at the time of building permit.
6. Park fees in the amount of$175 must be paid at the time of building permit.
7. Tree fees in the amount of$400 (2 trees per lot x $200) must be paid at the time of
building permit
8. Moving or removing of any utility services, if necessary, will be at property owner's
expense.
9. The property owners are responsible for updating and recording their property deeds and
survey at McLeod County prior to submitting a building permit for the new lot.
If the Commission recommends denial of the lot split, findings for the denial should be discussed
and included in the findings resolution recommending denial to the Council. Items for special
consideration by the Commission would be the recommendation for denial by the DNR, which
has not been removed, the location within the 100 flood plain, and unsuitability of the land in it's
natural state for construction.
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Ceo Kenneth Cote, P.O. Box 216, Walnut IA 51577
Rob Collett, DNR
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REC&NED
AUG 6 Z007
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PROPERTY IS IN ZONE X AND ZONE AE
FLOOD INSURANCE RATE MAP FOR
THE CITY OF HUTCHINSON
COMMUNITY PANEL NO 270264 0003 0
Sase Flood Elevation shown To be 1045
BENCHMARKS USED
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AREA OF SOUTHEASTERLY PARCEL' 17600 Sq Ff~
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PROPOSED DEseR
Th.at pon of LOI 4
nonhwesTerly of ..Q.
Commencing 01 thE
minutes Eost, OSSl
feer fO lhe ongle I
minUTes Easf, olon,
The beginning of It
seconds WesT ObOl
terminaTing.
PROPOSED OESCRI
That part of Lot 4
southeasterly of a
Commencing Ot tI'le
minutes Eost, OSSU
feet fO the ongle p
minutes East, olon~
the beginning of th
seconds WesT obou
TerminaTing.
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August 3, 2007
1'ECi.Ne.f
Rebecca Bowers
Planning Director
h\jG
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Hutchinson Pl:mning and Zoning
III Hanson Street SE
Hutchinson, MN 55350-2522
Subject: Lot Split at 1316 Delaware Street N. W.
Dear, Mrs. Bowers
Item 1.
Percentage of permeability surrace of each proposes lot.
Based on survey done by Jeff Rausch Dated March 30th 2007.
Northwesterly Lot Total lot with existing home square footage, 15,100.SF
Home with garage. 1790 SF
Driveway with sidewalk. 720 SF
Allowed Percentage 25% 3775 SF
Southeasterly Lot Total 17,600 SF
Existing Shed 1,200 SF --1
Existing Drive to Shed 600 SF \
Proposed Home with garage 1,916 SF i
Proposed Driveway and sidewalk 465 SF ~
Allowed Percentage 25% 4,400 SF
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See attached drawing for location and elevation of proposed home on
southeasterly lot,
Item 2,
Type of construction proposed for the new home would be accomplished
with pile and girder construction.
With means and method of pile and girder construction in flood plane
provides a suitable and stable foundation in the event of flood see attached
drawings.
\0 G:)
.
.
.
The type and amount piles will be determined by engineering requirements
for existing soil conditions.
The proposed structure elevation will be placed above the 100 year flood
plane.
See attached drawing for illustration.
In closing, all concerns should full fill the requirements set forth by the
pbmning commission.
It is my intent to employ the services of an engineer, if the split is approved.
So I can meet all the needs and requirements set forth by the building
department.
Also to start with construction the spring of 2008.
Thank you,
Ken Cote
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WATERFRONT STRUCTURES
VinYl ....~ ...se.w... M.rbw Tim... . Pllna
Hanulllctures vlnyI sheet piling for seawalls, butkheltds, c:ut-off WBIls. TlmberGuanlls polymer pnltected wood for marine projects.
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Timber bearing piles are usualJy stmil!bt _ ttunks '
with the limbs and bark I'elllOVOlI. These piles if..llw. C.A<;'1g is filled with coocreIe, The casing" then
continuously wet, will last fur oenturies; however. 'they -ii!iDoved, leaving the conctele in contacl with the earth.
are used for low design loads because of their
vulnerability to damage while they are being dri.... into -- ....
the ground The smalJ end of the pile is called the tip; Sheet piles. made of wood, steel, or con<:n:te. are
the larger end is called the butt. Timber piles range fronequipped or constructed fur edge-joining. so they can be
16 to 90 feet in length with a tip diameter of at least 6 driven edge-tO<dge to form a continuous wall or
inches, The bun diameter is seldom less than 12 inches,bulkhead A few common uses ofsbeet piles are as
A steel bearing pile migbt be an H"1'ile (having an follows:
H-sbaped cross section), These piles are usually used fur ' .
dri' t L_~_'. A steel pile al be 'il 1. To res.st lateral soil pressure as part of a
vmg 0 lXiu.n."'.... can so a pIpe p e . .
with a circular cross section. A pipe pile can be eithet antemponlly or permanent structure, sucb ns a retammg
open....d pile or a closed-<:nd pile. depending on Wall
whether the bottom end is open or closed, 2, To CODSIIUCl cofferdams or sttuctures built to
Conaete piles, such as those shown in figure 1.] 0, exclude water from a construction area
maybe either precast or.cast in place. Most precast pil~ 3. To prevent slides and cave-ins in trenches or
used today are pretens.oned and are manufactured m., vab'o
bli bed Ian Th il __~_ ' omer e,co ns
esta s p 15. ese p es are lWJUC m square,
cy1indrical, or octagonal shapes, If they are being driven The edges of _1 sheetpiling are called ......-
into soft or mucky soil, they are usually tapered. (fig, 1-11) because they are shaped for locking the piles
Cast-in-place piles are cast on the jobsite and are together edge-to-<:dge, The pan of the pile between the
classified as shell type or shell-less type, The shell type interlocks is called the -,
is fonned by driving abollow steel tube (shell). with a A wood sheet pile might consist ofa single, double.
closed end, into the ground and filling it with concrete, or triple layer of planks. as shown in figure 1-12,
The shell-less type is formed by first driving a casing Concrete sheet piles are cast with tongue-and.groove
and core to the required depth, The core is removed and edges for edge-joining,
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Poge Title: Pile Conotructlon
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Figure 8-11.-$oIclier pile systems.
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VinYl .'fllch...... -S-Walls
,..lInUhIctu~ 'lI'tnyl sheet piling for M8WBIIs, bulkheB1C1s, cut-off walls.
www.E"enastSeaw~lIs.CQm
Com:::rete o.sian SOftware
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PILE CONSTRUcrJON
As a Builder, you will coordinate and direct
piIe-driving operation C1CWS, Piles include many
dilferent types and materials, The more common types "
are covered next.
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BEARING PILES ~
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TIMBER BEARING PILES are usually straigh
tree trunks witb the limbs and balk removed, and all
timber will be PRESSURE-TREATED, These piles, '
kept eonIinuously ..... will last for centuries; h
they are used for low-<lesillD loads because of
vu1nembility to damage while they are being driven .
the ground, The sma1I end of the pile is ca11ed tbe tip;
the larger end is ca11ed the botl Timber piles range from
16 10 90 feet in 1ength with a tip diameter of at Jeast 6
inches, The butt diameter is seldom less than 12 inches,
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STEEL BEARING PILES are usually H'1Iile ....... .'
(baving an II..JJaped cross so::tiOD), These piles .....,.. ...-
usually used for driving through bedrocI< or until'" '~r""
refusal, A steel pile can also he a pipe pile with a
cUcolar cross sectionA pipe pile can he either an
open-end pile or a closed-end pile, depending on
whether 1he bottom end is open or closed.
CONCRETE PILES, as shown in figure 8-12, may
be either precast or oast in place, Most precast piles
used today are pretensioned and are III8D1lfiIcture in be driven edge-to-<:dge to form a continuous wall or
established plants, These piles are made m square '
cylindrical, or octagonal shapes, When driven into soilbulkbead. A few common uses of sheet pdes are as
or I1llIOky soil, they are usual1y~, Cast-in'1llace foil",",:
piles are oast on the jobsite and are elassified as shell I To resist Imaal soil pressure as part of .
type or shell-less type, The shell type is formed when ' . '
the hollow steel tube (shell) with a elosed end is driventemponuy or permanent structure, such as a retaJJUDg
inlO the ground and it is filled witb eoncrete, Thewa11
shell-less type is formed when first a casing and core 2, To construct cofferdams or structures built to
are driven 10 the required depth, The core is removed, exclude water from a construction area
and the casmg IS filled With concrete. The casmg IS then
removed. leaving the concrete in contaCt with the earth, 3, To prevent slides and cave-ins in trenches or
otI1er ex<:ovations
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F1pre 1-1l._TypesoflCOllCl'lte,..
SHEET PILES
The edges of steel sheetpi1ing llIO ca1Ied
INTERLOCKS (fig, 8-10), because they are shaped for
locking the piles togethel- edge-to-<:dge, The part of the
pile between the interlocks is called tbe WEB.
Sheet piles, made of wood, steel or conerete, are
equipped or constructed for edge-joining, so they can
8-9
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RESOLUTION NO. 13256
RESOLUTION APPROVING A LOT SPLIT OF LOT 4, RIVERSIDE ADDITION,
LOCATED AT 1316 DELAWARE STREET N.W.
Whereas, Ken Cote, property owner, has requested approval of a lot split of Lot 4, Riverside
Addition with the following legal description:
Northwesterly Parcel: That part of Lot 4 of Riverside Addition, according to the recorded plat
thereof, lying northwesterly of a line described as follows:
Commencing at the northwest comer of said Lot 4; thence South 86
degrees 33 minutes East, assumed bearing, along the north line of said Lot
4 a distance of 75,83 feet to the angle point in said north line of Lot 4;
thence South 46 degrees 11 minutes East, along the northeasterly line of
said Lot 4 a distance of 183.00 feet to the beginning of the line to be
described; thence South 55 degrees 19 minutes 00 seconds West about 159
feet to the shoreline of the Crow River and said line there terminating.
Southeasterly Parcel That part of Lot 4 of Riverside Addition, according to the recorded plat
. thereof, lying southeasterly of a line described as follows:
Commencing at the northwest corner of said Lot 4; thence South 86
degrees 33 minutes East, assumed bearing, along the north line of said Lot
4 a distance of 75.83 feet to the angle point in and north line of Lot 4;
thence South 46 degrees II minutes East, along the northeasterly line of
said Lot 4 a distance of 183.00 feet to the beginning of the line to be
described; thence South 55 degrees 19 minutes 00 seconds West about 159
feet to the shoreline of the Crow River and said line there terminating,
Whereas, the Planning Commission considered the lot split request on August 21, 2007, and
considered the requirement of the Zoning Ordinance and effects of the proposal on the health,
. safety, and welfare of the occupants of the surrounding lands, existing and anticipated traffic
conditions, and the effect on values of properties in the surrounding area and consistency with
the Comprehensive Plan, and hereby recommends approval of the request.
The City Council has considered the recommendation and findings of the Planning Commission
and hereby does recommend approval ofthe lot split, subject to the following findings and
conditions:
L Construction on both lots shall comply with the shoreland district and requirements ofthe
R-2 Zoning district. No variances are granted or implied,
. 2. Lot split shall be recorded at the County prior to issuance of any building permit.
!ODJ)
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Resolution #13256
Lot Split - 1316 Delaware St. NW
August 28, 2007
Page 2
3, Impervious surface shall not exceed 25% on either lot. A survey documenting all
impervious surface coverage will be required prior to issuance of any building permit.
4. The area containing Delaware Street from Hwy 7, including Outlot A, shall either be
deeded to the City or Riverside Addition be replatted to show appropriate right of way for
a public street.
5, SACIWAC fees in the amount of$2,950 must be paid at the time of building permit.
6. Park fees in the amount of $175 must be paid at the time of building permit.
7, Tree fees in the amount of $400 (2 trees per lot x $200) must be paid at the time of
building permit
8, Moving or removing of any utility services, if necessary, will be at property owner's
expense,
9, The property owners are responsible for updating and recording their property deeds and
survey at McLeod County prior to submitting a building permit for the new lot.
10. The applicant shall remove the detached garage from the proposed new lot prior to
recording the lot division at McLeod County and prior to submitting a building permit for
the new lot.
Adopted by the City Council this 28th day of August, 2007,
ATTEST:
Gary D, Plotz
City Administrator
Steven W, Cook
Mayor
I DC))
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CITY OF HUTCHINSON
MEMO
Finance Department
August 23, 2007
TO: MAYOR & CITY COUNCIL
FROM: KEN MERRILL, FINANCE DIRECTOR
SUBJECT: TAX INCREMENT DISTRICT NUMBER 7
We have had on going discussions with Prince of Peace management
regarding future increment capture. At the time the district was
established, discussion had focused on capture until the loan to
the city was repaid.
In reviewing the original document, by our legal counsel,
language was unclear as to amount to reimburse Prince of Peace.
The attached document clarifies and allows reimbursement of
expense incurred for acquisition, relocation, demolition, and
allowable other costs.
With City Council approval, the document continues reimbursement
to Prince of Peace for reimbursement of the documented
reimbursable costs.
H:\DOC\City counci2 memo l.doe
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TAX INCREMENT ASSISTANCE AGREEMENT
DEVELOPMENT DISTRICT NO, 4 -
TAX INCREMENT FINANCING DISTRICT NO, 7
CITY OF HUTCHINSON, MINNESOTA
AND
PRINCE OF PEACE SENIOR APARTMENTS, INC,
August 28, 2007
loCh)
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TAX INCREMENT ASSISTANCE AGREEMENT
This Agreement is made as of August 28, 2007, by and between the CITY OF
HUTCHINSON, MINNESOTA, a municipal corporation of the State of Minnesota (the "City"),
and PRINCE OF PEACE SENIOR AP ARTMENTS, INC" a Minnesota nonprofit corporation
("Developer"),
WITNESSETH:
WHEREAS, the City has designated a development district in the City denominated
Development District No, 4 (the "Development District") and has approved a development
program for the Development District (the "Development Program") pursuant to and in
accordance with Minnesota Statutes, Sections 469.124 to 469.134 (the "Act");
WHEREAS, pursuant to a Development Agreement dated June 22, 1994, between the
City and the Developer, the Developer purchased certain property from the City in the
Development District legally described in Schedule A hereto (the "Development Property") and
the Developer has constructed on the Development Property a 40-unit senior residential rental
housing development (the "Development");
WHEREAS, to assist the Developer in financing costs incurred by the Developer in
acquiring and constructing the Development pursuant to the Development Agreement the City
loaned to the Developer $397,000 (the "1994 Loan");
.
WHEREAS, on behalf of the Developer the City has issued its Housing Facilities
Refunding Revenue Bonds (Prince of Peace Senior Apartments, Inc. Project), Series 2003A and
B, under Minnesota Statutes, Chapter 462C (the "2003 Revenue Bonds"), on behalf of the
Developer and loaned the proceeds to the Developer to refund revenue bonds previously issued
on behalf of the Developer by the City to finance the acquisition and construction of the
Development, and to prepay the 1994 Loan in full;
WHEREAS, to provide financial assistance to the Developer with respect to the
Development, the City has included the Development Property in a tax increment financing
district designated as Tax Increment Financing District No, 7 (the "Tax Increment District")
within the Development District, and authorized the financing of the Development Program
pursuant to a Tax Increment Financing Plan For Tax Increment Financing District No, 7 (the
"Financing Plan") pursuant to and in accordance with Minnesota Statutes, Sections 469. I 74
through 469. I 79 (the "Tax Increment Financing Act"), and the City has been providing to the
Developer a portion of the tax increment from the Tax Increment District to reimburse it for a
portion of the debt service paid on the 1994 Loan and, following the prepayment of the 1994
Loan, the debt service of the 2003 Revenue Bonds issued to prepay the 1994 loan;
WHEREAS, the City and the Developer desire to enter into this agreement to set forth the
application of tax increment from the Tax Increment District by the City to reimburse the
Developer for the payment of a portion of the debt service on the 2003 Revenue Bonds and any
. indebtedness incurred by the Developer to refund such 2004 Revenue Bonds;
IbCh)
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NOW, THEREFORE, in consideration of the foregoing premises and the mutual
obligations set forth in this Agreement, the parties hereto hereby agree as follows:
ARTICLE I
DEFINITIONS
Section 1, I. Definitions, In this Agreement, unless a different meaning clearly appears
from the context:
"Act" means Minnesota Statutes, Sections 469.124 through 469.134.
"Agreement" means this Agreement, as the same may be from time to time modified,
amended or supplemented.
"Available Tax Increment" means 90% of the Tax Increment received by the City,
"City" means the City of Hutchinson, Minnesota, a Minnesota municipal corporation.
"City Council" means the City Council of the City,
"Development Area" means the area included in the Development District.
"Development District" means Development District No.4 designated by the City under
the Act.
"Developer" means Prince of Peace Senior Apartments, Inc., a Minnesota nonprofit
corporation,
"Development Agreement" means the Development Agreement dated June 22, 1994,
between the City and the Development.
"Development Property" means the portion of the Development Area described on
Schedule A attached hereto.
"1994 Loan" means the loan in the principal amount of$397,000 made by the City to the
Developer pursuant to the Development Agreement.
"Section" means a Section of this Agreement, unless used in reference to Minnesota
Statutes,
"Series 2003 Bonds" means the City's Housing Facilities Refunding Revenue Bonds
(Prince of Peace Senior Apartments, Inc, Project), Series 2003A and B, and any bonds or other
indebtedness which refunds the Series 2003 Bonds,
"State" means the State of Minnesota,
2
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"Tax Increment" means tax increment received by the City from the Tax Increment
District.
"Tax Increment Act" means Minnesota Statutes, Sections 469.174 through 469.179,
"Tax Increment District" means Tax Increment Financing District No.7 created by the
City pursuant to the Tax Increment Financing Plan,
"Tax Increment Financing Plan" means Tax Increment Financing Plan for
Redevelopment Tax Increment Financing District No, 7, as amended.
ARTICLE 11
REIMBURSEMENT TO DEVELOPER FROM TAX INCREMENT
Section 2.1, Reimbursement to Developer of Certain Costs, In order to reimburse the
Developer for a portion of the debt service on the Series 2003 Bonds issued to prepay the 1994
Loan, the City agrees to pay to the Developer all Available Tax Increment up to an aggregate
maximum amount of $375, 939. On each February I and August I the City shall pay to the
Developer all Available Tax Increment received to such date by the City and not previously paid
by the City to the Developer, until such time as the aggregate amount of such payments equals
$375,939; provided that if on such date there exists any delinquencies in the payment of real
estate taxes or special assessments with respect to the Development Property, the City shall
apply amounts otherwise to be paid to the Developer hereunder to pay delinquent real estate
taxes and special assessments, and any amount remaining after such payment shall be paid to the
Developer. The Developer acknowledges (i) that the payments to be made by the City under this
Section 2, I (including any amount applied to pay delinquent real estate taxes and special
assessments) are limited to an aggregate amount of$375,939 and shall be made solely from
Available Tax Increment, (ii) that Available Tax Increment is determined solely from Tax
Increment received by the City with respect to the Tax Increment District, and that tax increment
received by the City with respect to any other tax increment financing districts of the City does
not constitute Available Tax Increment, and the City shall not be obligated to make this payment
from any other funds of the City, (iii) no interest is payable on the amounts to be paid under this
Section 2.1, and (iv) that neither the full faith and credit nor taxing power of the City is pledged
to such payment. The Tax Increment District will terminate on December 31, 2009, and the
obligation of the City to make payments under this Section 2.1 shall terminate once the Tax
Increment District is terminated and the City has paid all Available Tax Increment on hand with
the City to the Developer, The City makes no representation or warranty that the Available Tax
Increment will aggregate $375,939 over the remaining term of the Tax Increment District.
ARTICLE III
ADDITIONAL PROVISIONS
Section 3,1, Conflict of Interests; City Representatives Not Individually Liable, No
member, official, employee, or consultant or employees of the consultants of the City shall have
3
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any personal interest, direct or indirect, in this Agreement, nor shall any such member, official,
consultant or the consultant's employees or employee participate in any decision relating to this
Agreement which affects his or her personal financial interests or the financial interests of any
corporation, partnership, or association in which he or she is directly or indirectly interested, No
member, official, consultant or the consultant's employees, or employee ofthe City shall be
personally liable to Developer, or any successor in interest, in the event of any default or breach
by the City or for any amount which may become due to Developer or successor or on any
obligations under the terms of this Agreement.
Section 3.2. Titles of Articles and Sections. Any titles of the several parts, Articles, and
Sections of this Agreement are inserted for convenience of reference only and shall be
disregarded in construing or interpreting any of its provisions.
Section 3.3, Notices and Demands. Except as otherwise expressly provided in this
Agreement, a notice, demand, or other communication under this Agreement by either party to
the other shall be sufficiently given or delivered if it is dispatched by registered or certified mail,
postage prepaid, return receipt requested, or delivered personally as follows:
(a) in the case of Developer, addressed to or delivered personally to Developer at 301
Glen Street, Hutchinson, Minnesota 55350, Attention: Executive Director;
(b) in the case of the City addressed or delivered personally to the City Administrator at
City Center, ] 11 Hassan Street SE, Hutchinson, Minnesota 55350;
or at such other address with respect to any such party as that party may, from time to time,
designate in writing and forward to the other party as provided in this Section,
Section 3.4, Term of Agreement. This Agreement shall terminate upon the payment in
full of the payments to be made by the City pursuant to Section 2,1 hereof,
Section 3,5, Complete Agreement. This Agreement constitutes the entire agreement and
understanding between the City and the Developer and supersedes any offers, negotiations,
previous agreement or understanding, written or oral, between the City and Developer with
respect to payment of any Tax Increment to the Developer by the City,
Section 3,6, Counteroarts. This Agreement is executed in any number of counterparts,
each of which shall constitute one and the same instrument.
4
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.
.
.
IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed as
of the date first above written,
CITY OF HUTCHINSON, MINNESOTA
By
Its Mayor
By
Its City Administrator
PRINCE OF PEACE SENIOR APARTMENTS,
INC.
By
Its
5
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.
SCHEDULE A
DEVELOPMENT PROPERTY
Lot One (I), Block One (I), Prince of Peace Addition to the City of Hutchinson,
according to the Plat on file in the office of the County Recorder, McLeod County,
Minnesota,
.
.
6
\6 (:V0
.. MEMORANDUM
.
.
DATE: August 22, 2007 for the August 28, 2007 City Council meeting
TO: Hutchinson City Council
FROM: Rebecca Bowers, AICP, Planning Director
SUBJECT: PRELIMINARY AND FINAL PLAT FOR JENSEN SECOND ADDITION
(Tabled from July 24th Council meeting)
Backaround:
The property owners have submitted a one lot Preliminary and Final plat for Jensen Second
Addition to construct a new home. The building permit has been approved to allow
construction on the previously platted parcel that was recorded in 1/2007, which created the
new home site, with the condition that the coverage not exceed 25% as the property is subject
to shoreland district requirements, The plat would add approximately 17,000 square feet from
the river portion onto the lot under construction.
The subject property has had many subdivisions and lot combinations over the years. As the
property has had many modifications, maps are attached which show the lot changes on record
over the last couple of years (refer to attachments).
The applicant originally requested to vacate easements between the two properties, however
the vacation is not necessary for construction of the home and was withdrawn. Additional
information is contained in the attached Planning Commission staff report.
PlanninQ Commission Meetina:
The Planning Commission held a public hearing and considered the request at their July 17,
2007, meeting. Staff explained the complexity of the property history and the changes over
the last couple of years (refer to attached maps). Staff stated the subdivision is reallocating
land between two home sites and each must not exceed the 25% coverage requirement within
the shoreland district. Construction has started on the parcel that was platted in 2006
(recorded in 1/2007), which created a new home site, with the condition that the impervious
coverage does not exceed 25%.
As the new plat proposes to transfer approximately 17,000 square feet of river front property to
the new home site, it makes the existing Jensen home site lot considerably smaller than it
currently is and coverage is an issue.
Mr. Jensen commented on the history of the property. He no longer needs to vacate the
easement and will withdraw the request for vacation, He will provide an easement to the
city for the sanitary sewer line to the north He stated he would amend the plat to include a
10 foot strip to the lake which will remain with the original lot so it would meet the
requirements,
loCI)
.
City Council Report
August 28, 2007
Page 2 of 5
Commission discussion followed on the original plat being a nonconforming lot. There
was discussion on the coverage of the lots. Jeff Rauch, surveyor, explained the location of
a 10 foot strip that Mr. Jensen said would be left with the existing home site. Discussion
continued on the existing lot coverage and changing the plat. City Attomey Sebora stated
the percentages must comply, on both lots, in the end. There was further discussion on the
need for the existing lot to meet the lot coverage standards. Mr. Jensen stated if the 10 foot
strip is placed back on the existing lot the lot coverage does not have to be met. A survey
was requested from the applicant to demonstrate the coverage would not be exceeded,
however it has not yet been provided.
Chairman Otteson stated this is an opportunity to make both lots conforming. Mr. Jensen
stated there are many nonconforming lots on the river in the city.
After additional discussion, the Commission recommended that plat be approved with the
following finding and changes to the draft resolution: 1) Condition #3 can be removed
regarding the vacation of the utility easement, and 2) adding the finding that the existing home
site pass as a nonconforming lot and the plat shall be revised to include the 10 foot strip to the
north with the existing lot.
. Additional Information Provided After Commission Meeting:
The applicant has stated that the approximately 17,000 square foot area along the river was
never combined with the existing home site and that the existing home site should be
considered legal non-conforming. Staff met with the applicant to discuss the property and
requested information to show that they were not combined as parcel information obtained
from the County shows the property as one,
It is staff's understanding that the new plat proposes to transfer approximately 17,000 square
feet of river front property to the new home site, which would make the existing Jensen home
site lot smaller and non-conforming for coverage. Additional information may be provided to
show the lots were not combined and the parcel data is in error. The City Attorney will be
meeting with the applicant prior to the Council meeting to review documents and will update the
Council with any new information.
If the new lot arrangement with the existing house does not comply with the coverage
maximum, there are options available such as: 1) removal of impervious surface (a problem
due to existing shared driveways), 2) dividing the 17,000 square feet of riverfront land between
the two properties to add additional open space to the westerly lot, or 3) a variance to exceed
the 25% maximum coverage.
Recommendation:
.
The Planning Commission recommended approval of the Preliminary and Final Plat, with the
stated findings and conditions in the attached resolution.
100)
City Council Report
August 28, 2007
Page "3 of 5
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City Council Report
August 28, 2007
Page 4 of 5
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City Council Report
August 28, 2'007
Page 5 of S"
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DIRECTORS REPORT - PLANNING DE,P ARTMENT
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To:
Date:
HutcbinsonPlanning Commission
Brad E.mans, Dolf Moon, D'ave Hunstad, Miles Seppelt, Shap Ghimire, Jean
Ward, Judy Flemming, John Webster, John Olson, Lenny Rutled,ge~ Kyle
Dimler~ Kent 'Exner, John P,aul~on, Mark Sch'nobri~b, Marc Sebora, Gary
Plotz, Ke.n, Merrill, JimPopp, Dan H,atte~, Dick Nagy, Rebecca Bower's and
Bonnie Baumetz (Persons in attendance at Planning Staff Meeting (in bold)
July 11, 2007,.:for July 17, 2007, Planning Commission Meeting
From:
Application: Jensen Second Addition Prelimina,ry and Final Plat and Vacation of
Easements
Applicant:
N'eiJ Jensen, Property owner
60 Day Deadline:
.July 29, 2007
PRELIl\fiNARY AND FINAL 'PLAT
V ACA nON OF EASEMENTS
Brief Description
The property owner has submitted ~ one lot preliminary and final plat for Jensen Secon'd
Addition. The plat proposes to divide the portion of the property alo'hg the river from the
existing Jensen home site in order to add it to the lot to the east for Gonstruction of a new 110me~
The ,applicant is also requesting to vacate easem~ntsbetweel1. the two properties. The subject
property has had several subdivisions and con'solidations. The subject property has two shared
drives crossing the property which serve the home to the west This property 18 subjec~ to t.he
slloreland district requirements. The following map shows the approximate layout of the
proposed plat,.in shadow with 110tes to describe the lot existing arrangement:
to C; "]
.
.
.
Jensen Second Addition - Preliminary and Final Plat
Neil Jensen - 425 Washington Ave W
Page 3
applicant will need to relocate utilities into existing easement areas at his own cost before the requested
easement can be vacated, However, due to the location of the new building pad, the vacation of
easements may not be necessary and the applicant could withdraw his request for the vacation.
Standard fees for the new plat were charged on the building permit, including fee for two trees ($200.00
per tree) and the standard park fee of $215 ,00,
Staff would recommend approval of the requested preliminary plat, final plat, and vacation of easements
with the following conditions:
1. The plat must comply with the requirements of the R-2 zoning district, subdivision requirements,
and the shoreland district requirements,
2, Prior to the City signing the final plat, the applicant shall provide a survey to demonstrate that the
25% maximum is not exceeded on the existing Jensen home site. If the property exceeds the
25% impervious coverage, the applicant will need to either remove hardcover or revise the plat to
allocate additional property to the westerly site, subject to meeting the requirements of the zoning
ordinance,
3, Relocation of utility services is required prior to vacation of easements, The relocation and any
fees will be at property owner's expense.
4, An easement of 20 feet on each side ofthe sanitary line to the north shall be provided to the City
prior to the City signing the final plat for recording.
Attachments: Preliminary and Final Plat
Survey of Proposed Home
Previous Plats for Clarification
Cc: Neil Jensen, 22 Main Street North
Kevin Compton, Compton Anderson Construction, 18482 - 202nd Cr.
Rob Collett, DNR
\Oe\)
.
.
.
RESOLUTION NO. 13240
RESOLUTION APPROVING A ONE LOT PRELIMINARY AND FINAL PLAT FOR JENSEN
SECOND ADDITION
Whereas Neil and Lynette Jensen, property owners, have submitted a one lot preliminary and final plat
for Jensen Second Addition with the following legal description:
Lot 1, Block I, Jensen Addition, according to the recorded plat thereof.
Also, The East 33 feet of Lot 3 and Lot 2 except the East 74.25 feet of said Lot 2, all in
Block 39, Townsite of Hutchinson, North Half.
Also, Commencing at a point 43 feet West of the Southeast comer of Lot 3, Block 39,
Townsite of Hutchinson, North Half, according to the map or plat on file and of record in
the office of the Register of Deeds in and for McLeod County, Minnesota; thence North
180 feet to a point; thence West 15 feet; thence North to the North line of said Lot 3;
thence Northeasterly along the North line of said Lot 3 to a point 33 feet West of the East
line of Lot 3; thence South to the South line of Lot 3; thence West along the South line of
Lot 3 to the place of beginning, Subject to easements of record,
Whereas, the Planning Commission held a public hearing and considered the preliminary and final plat
and vacation of easements request on July 17, 2007, and considered the requirements of the Zoning
Ordinance and effects of the proposal on the health, safety, and welfare of the occupants of the
surrounding lands, existing and anticipated traffic conditions, and the effect on values of properties in the
surrounding area and consistency with the Comprehensive Plan, and hereby recommends approval of the
request.
The City Council has considered the recommendation and findings of the Planning Commission and
hereby does recommend approval of the preliminary and fmal plat and vacation of easements, subject to
the following findings and conditions:
I, The plat must comply with the requirements of the R-2 zoning district, subdivision requirements,
and the shoreland district requirements.
2, Prior to the City signing the final plat, the applicant shall provide a survey to demonstrate that the
25% maximum is not exceeded on the existing Jensen home site. If the property exceeds the
25% impervious coverage, the applicant will need to either remove hardcover or revise the plat to
allocate additional property to the westerly site, subject to meeting the requirements ofthe zoning
ordinance.
3, Relocation of utility services is required prior to vacation of easements, The relocation and any
fees will be at property owner's expense,
4, An easement of20 feet on each side of the sanitary line to the north shall be provided to the City
prior to the City signing the final plat for recording,
Adopted by the City Council this 28th day of August, 2007,
ATTEST:
Gary D, Plotz
City Administrator
Steven W. Cook
Mayor
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RESOLUTION NO. 13260
RESOLUTION FOR CREATING
A PRIORITIZED BRIDGE REPLACEMENT LIST
WHEREAS, the City of Hutchinson has reviewed the pertinent data on bridges requiring
replacement, rehabilitation, or removal, supplied by local citizenry and local units of government, and the
regional development commission; and
WHEREAS, the City of Hutchinson has identified those bridges that are high priority and that
require replacement, rehabilitation, or removal within the next five years;
NOW, THERFORE BE IT RESOLVED that the following deficient bridges are high priority and
the City of Hutchinson intends to replace, rehabilitate, or remove these bridges as soon as possible when
funds are available,
Old Road Number Total Project Township or Federal Local or State Proposed
Bridge or Name Cost State Bridge Funds Aid Funds Construction
Number Funds Year
43506 2"" Ave SE $725,000 $0 $0 $362,500 2012
(MSAS 109)
FURTHERMORE, the City of Hutchinson does hereby request authorization to replace,
rehabilitate, or remove such bridges,
Adopted by the Council this 28th day of August 2007,
Mayor: Steven W, Cook
City Administrator: Gary D, Plotz
STATE OF MINNESOTA
COUNTY OF
I hereby certify that the foregoing Resolution is a true and correct copy of the Resolution
presented to and adopted by the City of Hutchinson at a duly authorized meeting thereof held on the 28th
day of August, 2007, as shown by the minutes of said meeting in my possession,
City Administrator: Gary 0 Plotz
Notary Public:
My Commission Expires:
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. 13261
Resolul1on No,
Resolution Providing for tbe Negotiated Sale of
$2,150,000 (Approximate) Taxable Public Project Revenue Bonds, Series 2007 A
WHEREAS, the Board of the Economic Development Authority (the "Authority") of the City of
Hutchinson, Minnesota (the "City"), has heretofore determined that it is necessary and expedient to
issue the Authority's $2,150,000 (Approximate) Taxable Public Project Revenue Bonds, Series
2007 A (the "Bonds"), to finance the construction of a 20,000 square foot building on certain land (the
"Facilities") owned by the Authority and to lease the Facilities to the City; and;
WHEREAS, the City Council has been advised that, in order to make the Bonds marketable, they will be
requested to enter into a lease agreement with the Authority pursuant to which the City may be requested
to make an annual appropriation in an amount sufficient to meet the rental payments that will be due
under the lease;
NOW, THEREFORE, BE IT RESOLVED by the City Council of Hutchinson, Minnesota, as follows:
I. Authorization: Findings, The City Council hereby authorizes Ehlers to solicit proposals from
financial institutions for the negotiated sale of the Bonds,
2, Meeting; Proposals Considered, The City Council shall meet at City Hall on September 11,2007, for
the purpose of considering the proposals received; approval of the bond sale resolution and all related
documents will occur at subsequent meetings of the City Council and Authority,
3, Official Statement. In connection with said sale, the officers or employees of the City are hereby
authorized to cooperate with Ehlers and participate in the preparation of an official statement for the
Bonds and to execute and deliver it on behalf of the Authority upon its completion.
Steven W, Cook
Mayor
ATTEST:
Gary D, Plotz
City Administrator
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CITY OF HUTCHINSON
MEMO
Finance Department
August 28, 2007
TO: MAYOR & CITY COUNCIL
FROM: KEN MERRILL, FINANCE DIRECTOR
SUBJECT: PUBLIC HEARING
City of Hutchinson has issued bonds for hospital improvements. We
are in progress of a lease to a non profit corporation that will
pay principal and interest when due to the City of Hutchinson.
A public hearing is required for this transition and would request
the City Council to:
Set a public hearing for September 11, at 6 p.m. for public
comment.
H:\DOC\City council memo 3.doc
II (CI)3
