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cp08-23-2005 cAGENDA REGULAR MEETING - HUTCHINSON CITY COUNCIL TUESDAY, AUGUST 23, 2005 1. CALL TO ORDER - 5:30 P.M. 2. INVOCATION -Rev. Jim Hall, Word of Life Church 3. PLEDGE OF ALLEGIANCE 4 4. MINUTES (a) REGULAR MEETING OF AUGUST 9, 2005 (b) SPECIAL MEETING OF AUGUST 11, 2005 (c) BID OPENING MINUTES OF AUGUST 5, 2005 Action -Motion to approve as presented 5. CONSENT AGENDA (a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS 1. HUTCHINSON AREA HEALTH CARE BOARD MINUTES FROM JULY 19, 2005 2. PIONEERLAND LIBRARY SYSTEM FINANCIAL REPORT FOR JLNE 2005 3. BUILDING DEPARTMENT MONTHLY REPORT FOR JULY 2005 4. PLANNING COMMISSION MINUTES FROM JULY 19, 2005 5. CITY OF HUTCHINSON GENERAL FUND FINANCIAL REPORT FOR JULY 2005 6. CITY OF HUTCHINSON REFUSE/COMPOST/WATER/WASTEWATERFINRNCIAL REPORTS FOR JULY 2005 7. CITY OF HUTCHINSON INVESTMENT REPORT FOR JULY 2005 (b) RESOLUTIONS AND ORDINANCES L RESOLUTION NO. 12788 - RESOLUTION AUTHORIZING EXECUTION OF GRANT AGREEMENT FOR SAFE & SOBER COMMUNITIES PROGRAM 2. RESOLUTION N0.12802 -RESOLUTION FOR PURCHASE (REED SLEDGE PEAT, UNLEADED FUEL, INSTALL ASPHALT, ENTRY DOORS) 3. ORDINANCE NO.OS-0412 -AN ORDINANCE AMENDING CHAPTER 94 OF THE HUTCHINSON CITY CODE PERTAINING TO OAKLAND CEMETERY RULES AND REGULATIONS (SECOND READLVG AND ADOPTION) (c) PLANNING COMMISSION ITEMS ] . CONSIDERATION OF A CONDITIONAL USE PERMIT TO ALLOW MORE THAN 1000 CUBIC YARDS OF FILL IN' THE FLOOD PLAIN LOCATED AT 225 HURON STREET S.E. WITH STAFF CITY CO UNCIL ,I GENDA -AUGUST 23, 2005 RECOMMENDATION AND FAVORABLE RECOMMENDATION (ADOPT RESOLUTION NO. 12790) 2. CONSIDERATION OF A LOT SPLIT (.67 ACRES) REQUESTED BY HUTCHINSON COOP LOCATED AT 1060 ST" AVE. S.E WITH STAFF RECOMMENDATION AND FAVORABLE RECOMMENDATION (ADOPT RESOLUTION NO. 12791) 3. CONSIDERATION OF EXTENDING CONDITIONAL USE PERMIT TO JULY 30, 2006, LOCATED AT 465 HIGH ST. N.E. REQUESTED BY MARVIN WILLHITE WITH STAFF RECOMMENDATION AND FAVORABLE RECOMMENDATION (ADOPT RESOLUTION NO. 12792) 4. CONSIDERATION OF FINAL PLAT TO BE KNOWN AS CORNERSTONE COMMONS SUBMITTED BY CHRISTIAN OCHSENDORF WITH STAFF RECOMMENDATION AND FAVORABLE RECOMMENDATION (ADOPT RESOLUTION NO. 12793) (d) CHANGE ORDER NO. I - LETTING NO. 10, PROJECT NO. OS-12 (PLAZA 15 PARKING LOT) (e)_CHANGE ORDER NO. 1 -LETTING NO. 7, PROJECT NO. OS-07, OS-08 AND OS-09 (MICHIGAN AVENUE AND 2ND AVENUE SW AND RAILRAOD CROSSINGS/STREET) (fl CONSIDERATION FOR APPROVAL OF SUBDIVISION AGREEMENT FOR BRIDGEWATER ESTATES THIRD ADDITION (g) CONSIDERATION FOR APPROVAL OF REJECTING BID OF DELTA MEDICAL SYSTEMS AND AWARDING BID TO NXC IMAGING -TOSHIBA FOR COMPUTED TOMOGRAPHY SCANNER AS • REQUESTED BY HUTCHINSON AREA HEALTH CARE Action -Motion to approve consent agenda 6. PUBLIC HEARINGS - 6:00 P.M. (a) CONSIDERATION FOR APPROVAL OF ESTABLISHING TAX INCREMENT FINANCE DISTRICT NO. 4-14 Action -Motion to reject -Motion to approve (b) CONSIDERATION FOR APPROVAL OF ADOPTION OF UPDATED CRITERIA FOR THE GRANTING OF BUSINESS SUBSIDIES AND AUTHORIZATION OF JOB OPPORTUNITY BliILDING ZONE TAX EXEMPTIONS Action -Motion to reject -Motion to approve 7. COMMUNICATIONS, REQUESTS AND PETITIONS (a) PRESENTATION BY JIM LAUMEYER & ASSOCIATES OF THE EXECUTIVE SUMMARY OF THE PROPOSED CITY OF HUTCHINSON COMPENSATION PLAN Action - 8. UNFINISHED BUSINESS ~. NEW BUSINESS 2 CITYCOUNCIL AGENDA-AUGUST 23, 2005 (a) CONSIDERATION FOR APPROVAL OF CALLING FOR SALE OF $2,790,000 GENERAL OBLIGATION SEWER AND WATER REVNUE BONDS, SERIES 2005C Action -Motion to reject -Motion to approve (b) CONSIDERATION FOR APPROVAL OF CALLING FOR SALE OF $3,055,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2005A Action -Motion to reject -Motion to approve (c) CONSIDERATION FOR APPROVAL OF CALLING FOR SALE OF $700,000 GENERAL OBLIGATION MSA ANTICIPATION BONDS, SERIES 2005B Action -Motion to reject -Motion to approve (d) CONSIDERATION FOR APPROVAL OF ORDERLY ANNEXATION AGREEMENT WITH LYNN TOWNSHIP Action -Motion to reject -Motion to approve (e) CONSIDERATION FOR APPROVAL OF RESOLUTION NO. 12789 -RESOLUTION ESTABLISHING LOCATION FOR TRAFFIC CONTROL DEVICES (WALMART AND OTHER SUBDIVISIONS) Action -Motion to reject -Motion to approve (fl CONSIDERATION FOR APPROVAL OF SETTING JOINT MEETING WITH THE MCLEOD COUNTY BOARD OF COMMISSIONERS AFTER LABOR DAY (PLUS 1-2 ALTERNATIVE MEETING DATES) • Action - Motion to reject -Motion to approve 10. MISCELLANEOUS (a) COMMUNICATIONS 11. CLAIMS APPROPRIATIONS AND CONTRACT PAYMENTS 12. ADJOURN 3 MINUTES REGULAR MEETING - HUTCHINSON CITY COUNCIL • TUESDAY, AUGUST 9, 2005 1. CALL TO ORDER - 5:30 P.M. Mayor Cook called the meeting to order at 5:30 p.m. Council members Haugen, Arndt and Peterson were present. Councilmember Stotts was absent. Other present included City Administrator Gary Plotz, City Attorney Mazc Sebora, and Director of Public Works John Rodeberg. 2. INVOCATION Due to the absence of Rev. Hall, the Council dispensed with the invocation. 3. PLEDGE OF ALLEGIANCE 4. MINUTES (a) REGULAR MEETING OF JULY 26, 2005 (b) BID OPENING MINUTES OF JULY 29, 2005 Motion by Arndt, second by Haugen to approve the minutes as presented. Motion passed on a unanimous vote. 5. CONSENT AGENDA (a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS • 1. HUTCHINSON PUBLIC LIBRARY BOARD MINUTES FROM JUNE 27, 2005 2. HUTCHINSON HOUSING & REDEVELOPMENT AUTHORITY BOARD MINUTES FROM JUNE 30, 2005 3. HUTCHINSON AREA HEALTH CARE BOARD MINUTES FROM JUNE 21, 2005 4. FIRE DEPARTMENT MONTHLY REPORT FOR JULY 2005 5. HUTCHINSON UTILITIES COMMISSION FINANCIAL REPORT FOR JUNE 2005 (b) RESOLUTIONS AND ORDINANCES 1. RESOLUTIONNO.12774-RESOLUTION APPROVINGCONSERVATIONPARTNERSGRANT FOR MILLER WOODS OAK SAVANNAH RESTORATION 2. RESOLUTION NO. 12775 -RESOLUTION CALLING FOR A PUBLIC HEARING ON THE ADOPTION OF UPDATED CRITERIA FOR THE GRANTING OF BUSINESS SUBSIDIES 3. RESOLUTION NO.12782-RESOLUTION APPROVINGPARTICIPATIONINGRANTPROCESS THROUGH THE MINNESOTA HISTORICAL SOCIETY FOR HARRINGTON-MERRILL HOUSE IMPROVEMENTS 4. RESOLUTION NO. 12783 -RESOLUTION ESTABLISHING LOCATION FOR TRAFFIC CONTROL DEVICES (FREEMONT AVENUE SE) 5. RESOLUTION NO. 12784 -RESOLUTION FOR PURCHASE (PUMP OVERHAUL) • ~Ca~ CITY COUNCIL MINUTES -AUGUST 9, 2005 6. ORDINANCE NO. OS-0411 -ORDINANCE AMENDING SECTION 73.16 RELATING TO MOTORIZED GOLF CART PERMITS (SECOND READING AND ADOPTION) • (c) CONSIDERATION FOR APPROVAL OF TRANSIENT MERCHANT LICENSE FOR T.A.P. ENTERPRISES TO HOLD A TOOL SALE ON AUGUST ]0, 2005, AT THE BEST WESTERN VICTORIAN INN (d) EDUCAT 0 BOARD TO AUGUST 2008 N TO THE PARKS, RECREATION, COMMUNITY (e) CONSIDERATION FOR APPROVAL OF TRANSFERRING LEASE AGREEMENTS FOR AIRPORT HANGARS WITH RAM BUILDINGS TO BART BRADFORD AND JOEL SCHWARZE (f) CONSIDERATION FOR APPROVAL OF RESETTING CITY OF HUTCHINSON RECOGNITION EVENT TO SEPTEMBER 15, 2005 (g) TRUNKH GHW Y 202 & 7 DES~GN MPROVEMENTSNT TO CONTRACT WITH MNDOT FOR (Ir) LETTING NO. 15, PROJECT NO. OS-17 (ROLLING MEADOWS EAST FIRST ADDITION) - DECLARING COST TO BE ASSESSED & ORDERING PREPARATION OF PROPOSED ASSESSMENT, ADOPTING ASSESSMENT AND AWARDING BID (i) CONSIDERATION FOR APPROVAL OF OUT-OF-STATE TRAVEL FOR LENNY RUTLEDGE, BUIIDDING OFFICIAL, TO ATTEND THE 2005 INTERNATIONAL CODE COUNCIL ANNUAL CONFERENCE IN DETROIT, MICHIGAN SEPTEMBER 25 -OCTOBER 2, 2005 (j) CONSIDERATION FOR APPROVAL OF OUT-OF-STATE TRAVEL FOR DOUG JOHNSON, COMPOST SITE SUPERVISOR, TO SOUTH BEND, INDIANA TO OBSERVE A NEW TYPE OF MULCH COLORIZER . (k) CONSIDERATION FOR APPROVAL OF AWARDING BAG FILM BID TO SUPERGROUP PACKAGING Items 5(b)(1), 5(b)(4), 5(b)(5), 5(d), and 5(j) were pulled for further discussion and separate action Motion by Arndt, second by Peterson to approve the consent agenda except for the previously noted pulled items. The motion carried unanimously. Item 5(b)(1). - Dolf Moon, PRCE Director, commented that the purpose of the grant is to continue the restoration of the oak savannah in Miller's Woods. The project is an involved process including weed eradication, soil scouring, planting native prairie grasses and bun oaks. Mark Schnobrich, City Forester, commented that this is a unique type of park for the City. More trails are to be added, all non-native plantings removed, all entrances to the park will be enhanced, and new oak plantings will be introduced for future generations to enjoy. The encroachment issues with the surrounding private properties has been addressed and compliance has been positive. Motion by Arndt, second by Haugen to approve. Motion passed unanimously. Item 5(b)(4) -John Rodeberg, Director of Public Works, commented that the City has been contacted by HAHC to review the parking situation and regulations and requested that 2-hour parking be established in the area of Freemont Avenue SE west of the intersection with Echo Drive SE. The area will be signed, but enforcement will be light. Motion by Arndt, second by Haugen to approve. Motion passed unanimously Item 5(b)(5) -John Rodeberg commented that the pump in question was used extensively during the sewer • line break in June 2005. Due m par[ to this use, the pump requires overhaul. ~~0.~ CITY COUNCIL MINUTES -AUGUST 9, 2005 Motion by Arndt, second by Haugen to approve. Motion passed unanimously. • Item 5(d) -Mayor Cook commented that the individual who was recently appointed to the PRCE Advisory Board is no longer available to serve. Mike Cannon, a current committee member, has been reappointed to serve the remainder of this term. Motion by Arndt, second by Peterson to approve the reappointment. The motion carried unanimously. Item 5(j) -Steve Madson, Creekside Manager, commented on the request for out-of--state travel. Doug Johnson, Creekside Supervisor, has an opportunity to observe a colorizerthat uses a dry application process. This machine presents an opportunity to colorize with reduced cost if the process does work. Mr. Johnson will view the machine and process, and determine ifthis is appropriate for Creekside. The proposed cost for the 2-day trip is approximately $700.00. Motion by Peterson, second by Amdt to approve the out-of--state travel. The motion passed unanimously. 6. PUBLIC HEARINGS - 6:00 P.M. Mayor Cook read a statement regarding concerned individuals presenting information before the Council for public hearings. (a) CONSIDERATION FOR APPROVAL OF ON SALE INTOXICATING MALT LIQUOR LICENSE TO MARLA MORRIS (RESTAURANT TO BE OPENED AT 41 WASHINGTON AVENUE EAST) The public hearing opened at 6:00 p.m. City Attorney Sebora noted that the liability insurance certificate has also been received and meets City requirements. • Motion by Haugen, second by Arndt to close the hearing. Motion unanimously approved. Motion by Peterson, second by Amdt to approve the liquor license for Marla Morris. Motion approved unanimously. (b) STREETSCEAPE AND WASHING ON AO ENUE OWEST ND ADOPTING ASSES ME TTOAND AWARDING BID The hearing opened at 6:05 p.m. Miles Seppelt, EDA Director, presented information about the proposed project before the Council. A major part of the project is the replacement of the streetlights that were installed m 1968. Substandard lighting for pedestrian traffic is an issue in the downtown area and lighting levels are to increase 50-60% over current conditions. The project will be coordinated with the improvements to the Main Street bridge and the TH 7 project. Work is scheduled to begin August 22, 2005. Work will be completed in 3-block sections and each lasting about two weeks. The work schedule will be coordinated with the business owners in an attempt to reduce inconveniences. The project has been endorsed by most of the affected property owners and resolutions of support have been recewed from associated groups and associations including the Chamber of Commerce, Downtown Association, and the Economic Development Authority. Mr. Seppelt also noted that staff recommends approval. The expressed need, project support, and timing of the project are all favorable. John Rodeberg noted that temporary light poles will be installed during the . project and that there are incentives in the protect for the contractor to adhere to the project schedule. u ~a~ CITY COUNCIL MINUTES-AUGUST 9, 2005 Bill Corby (owner 44 Main Street S.) thanked the Council for putting this project forward. He spoke about the increased momentum for the project and noted other downtown improvements including the river • fountain, Library Square fountain, Hotel remodel, State Theatre rehabilitation, and the Hutchinson family statues. Mary Lynn Cox (owner 46 Main Street N.) thanked the Council for their efforts with the project and commented on the need for a clean, friendly and safe business environment. Mike McGraw (owner 34 Main St S. and EDA member) noted that the EDA has financed $155,000 of improvements and recommends [hat the downtown revitalization plan be implemented. He expressed the EDA's support for the project and asked the Council for their support. Woody Lamprecht (owner 36 Main Street N.) concurred with the previous comments and also asked the Council for their support. Marc Vaillaincort (45 Century Ave. and President of the Hutchinson Chamber of Commerce) spoke of the previously noted resolutions for the support of the project. He also spoke about the progressiveness of the community and the commitment to the downtown project by the property owners is key to its success. He also thanked Council for their support. Matt MacMillan (36 Washington Avenue W. -Hutchinson Leader and Downtown Association) spoke to the Downtown Committee's support of the project. He stressed that changes to the streetscape plan have resulted from discussions with property owners. The Downtown Association has also worked with the EDA to make available $1,000 annually for financial assistance for downtown owners to make assessment payments. Mark Schierman (218 & 246 Main St. S) questioned the Council on the vacated street (3rd Avenue S W) and how his assessment was calculated for his property that is adjacent to 3`d Avenue. John Rodeberg noted that staff will look into this matter and a possible reduction or elimination of an assessment for the property . adjacent to the vacated street. Mr. Schierman also expressed his support of the project. Motion by Peterson, second by Arndt. To close the hearing. The motion received unanimous approval. Motion by Haugen, second by Arndt to approve the project. Mayor Cook noted that he had previously voted against this project due to overall improvement and bonding costs being considerably above the city's self-imposed target of $2.5 - 3 million. An alternative he considered was delaying the project until 2014 when THIS (Main St.) is planned to be reconstructed. He also entertained the option of proposing to delay the project until 2006 and having the council reconsider it along with other proposed projects with the intent to stay within the bonding targets for that year. However, upon review of the 2005 improvement projects and costs to date, and if the Denver Avenue project is not done in 2005, the Mayor found that this year's total bonding costs would be just over the $3 million target. John Rodeberg noted that the Denver Avenue project could be delayed to 2006, as additional project preparation is needed. The developer may still do some of their work on the project this year if they desire. Delaying Denver project will not adversely impact the 2006 improvement plan costs. Haugen amended the motion to include that the Denver Avenue project will not go forward in 2005, and that the assessments for the vacated 3`d Avenue SW portion of assessments for the project will be removed. Motion passed unanimously. 7. COMMUNICATIONS, REQUESTS AND PETITIONS (a) UPDATE ON TREE AND WEED REMOVAL POLICY AND 2005 PROGRAM - MARK SCHNOBRICH, CITY FORESTER City Forester Mark Schnobrich presented before the Council. Mr. Schnobrich noted that we are approaching the end of the season for these issues, and a report to the Council is appropriate. • 4 u ~~~ CITY CO UNCIL MINUTES -AUGUST 9, 2005 Mr. Schnobrich noted that the City staff does about four tours or assessments each summer of properties that are generally susceptible to weeds, including new developments. In addition, resident reports are received • regarding weeds on residential properties. McLeod County will also inform the City of fringe lots/properties with weeds. The weed eradication process includes a written notification to the property owner. They are given a 7-day period to comply. If no compliance, the City will contract with private contractors to do the removal. The property owner is assessed-the bill for removal with an additional $50/lot charge. For 2005 to date, the City has tagged 111 lots. This number fluctuates each year due to weather, conditions, etc. Of these, the City mowed only 4 properties. The City attempted to be more pproactive and notified property owners when the weeds were approaching the 8"maximum height. The eazly notice appeazed to be successful and property owners are complying. Councilmember Amdt noted that some residents have inquired why the City is not in compliance with its weed ordinance and cited Les Kouba Parkway. Mr. Schnobrich noted this area is a DNR approved buffer zone for the Crow River that includes prairie grasses. The City is starting an alternative landscaping plot outside of City Center. Forestry is also working with the Planning and Zoning department to promote alternative plantings for general lawns and shoreland areas. The discussion was suspended at 6:00 p.m. for the public hearings and was continued at 6:35 p.m. Mr. Schnobrich commented on the diseased tree removal initiative. 153 trees have been tagged for removal with the majority being Dutch Elms. Once the City tags a tree on private property is to be removed, they are responsible to secure a contractor or to remove the tree themselves. Owners are having a difficult time securing a contractor in a timely manner. The Council was asked to consider $7,180.00 in additional financial assistance to remove the trees on public property in an attempt to prevent the s reading of the disease. The expenditure is for the removal of • approximately 20 of the highly diseasedptrees by September. The City crews will remove the remaining diseased trees or portions of diseased trees. Motion by Peterson, second by Haugen to approve the $7,180.00 expenditure to secure a contractor to remove approximately 20 diseased trees. The motion was approved unanimously. Mr. Schnobrich also spoke about applying a fungicide to elms to stop the disease. This was done back in the late 1970's during the previous large-scale outbreak of the Dutch Elm disease. The cost is approximately $300 - $500 for an average tree. Motion by Cook to use $15,000 of unallocated funds for diseased Dutch Elm treatment. Motion amended to make it contingent on the funds being available and able to be used for this purpose. Motion failed due to the lack of a second. The Council asked Mr. Schnobrich further research the cost of injection and the effectiveness and to report back to the Council. 8. UFINISHED BUSINESS (a) John Rodeberg presented Resolutions No. 12785 and No. 12786 accepting bid and awarding project for letting No. 6A/Project No. OS-20 and Letting No. 6B/Project No. OS-21 respectively. Regarding Resolution No. 12786, staff recommends approving the bid from Westmor industries, the 3`d lowest bidder. The two lower bids were rejected due to unqualified bid proposals. . The City re-bid these projects that were previously rejected due to the high costs. The projects were ~ ~~~ CITY COUNCIL MINUTES -AUGUST 9, 2005 reworked and re-bid at acceptable costs. John Olson, Public Works Superintendent, spoke to specifics of the projects for the airport. One project • includes replacement of a strobe light and brings dower into the north end of the property through Hutchinson Utilities Commission. A surcharge fee will be paid to McLeod Co-op Power for the transition. The surcharge will not significantly increase the City bill, but the funds from the City bill will be split between HUC and the REA for a defined period of time. The second project includes an above ground 12,000 gallon tank for jet A fuel. This is a separate fueling system from the existing system. The need for this project is due to the demand of the type of aircraft using the Hutchinson Airport. Skydive Hutchinson and the AirLink helicopters use this type of fuel. The FBO will be responsible for maintaining the fuel inventory. The City will receive $.07 per gallon of fuel dispensed. Motion by Arndt, second by Haugen to approve Resolutions No. 12785 and No. 12786 contingent upon FAA and MnDOT approval granted and available matching funds secured. 9. NEW BUSINESS (a) ORDINANCE NO. OS-0412 - AN ORDINANCE AMENDING CHAPTER 94 OF THE HUTCHINSON CITY CODE PERTAINING TO OAKLAND CEMETERY RULES AND REGULATIONS (WAIVE FIRST READING AND SET SECOND READING AND ADOPTION FOR AUGUST 23, 2005) John Olson explained that two of the issues identified are the need to redevelop a piece of property on the west side of the cemetery due to a power line encroaching on plotted grave sites. This area was replotted and the area also allows for above ground monuments and multiple interments (traditional family grave site) and cremation interments. The second issue is in regards to recreational vehicle use in the cemetery. These types ofvehicles can cause • significant damage to monuments. The City needs to be good stewards ofthe monuments and the cemetery is not the preferred location to operate snowmobiles, ATV's and other types ofthese vehicles for recreational use. This ordinance would still allow these types of vehicles to be used during funerals and memorial services in a controlled setting. Motion by Peterson, second by Arndt to approve Ordinance No. OS-0412 amending Chapter 94 of the Hutchinson City Code pertaining to Oakland Cemetery rules and regulations. The first reading was waived and the second reading and adoption were set for August 23, 2005. Motion approved unanimously. (b) CONSIDERATION FOR APPROVAL OF RESETTING JOINT MEETING WITH THE HOSPITAL PRIVATIZATION TASK FORCE FOR SEPTEMBER 9, 2005, FROM 5:00 - 7:00 P.M. AT THE CITY CENTER Motion by Peterson, second by Haugen to approve the resetting of the joint meeting with the Hospital Privatization task force for September 9, 2005, from 5:00 to 7:00 p.m. at City Center. Motion passed unanimously. 10. MISCELLANEOUS (a) COMMUNICATIONS Julie Wischnack, Director of Planning, Zoning and Building Enforcement, presented a letter received and regarding the Cornerstone development. Mr. Ochsendorf, the developer, requests that the City consider a swap of two of the City owned parking lot spaces adjacent to the project. The spaces are to be used for storage of garbage receptacles and the required handicapped spaces would then be placed adjacent to the building. John Rodeberg noted that this has been done previously with other developments. This was not illustrated in the site plan received from the developer. Ms. Wischnack requested that this. change be reviewed by the Planning Commission, and if the Council is open to this proposal, it would need to be 6 ~ ta) CITY COUIJCILMINUTES-AUGUST 9, 2005 published for review by the Planning Commission in September. Garbage dumpsters/receptacles do need to be screened. Ms. Wischnack noted that the developer has mentioned the constructron of a substantial, stone wall screen. This location would also reduce potential conflicts of garbage hauler and drive thru traffic in the adjacent alley. Councilmember Haugen - Mr. Haugen noted that the recent Relay for Life event was a great success. Councilmember Arndt - Mr. Amdt spoke of increased traffic on South Grade road -vehicles, pedestrians, bikes, etc. Mr. Arndt requested that the City look into constructing an off-road trail from School Road to the western City limits. The City had filed a petition to reduce the limit on this CSAH for safety issues. McLeod County did a study on the area and MnDOT is not indicating any change at this time. He also asked staff to review the sewer line work at the McLeod County Fairgrounds that may have affected ponding in the grandstand infield area. Councilmember Peterson - Ms. Peterson congratulated the Hutchinson Theater Company forthe success of the recent production of the musical State Fair. She also noted the State Amateur Baseball Tournament will be held in Hutchinson and begins August 19. Mayor Cook - Mr. Cook inquired of the progress of the Water Plant Reservoir. Mr. Rodeberg noted the construction is almost complete and the structure can hold 3 times the amount of water our current towers hold. On the property, a seating area with views of the river will also be completed as part of the project. Mayor Cook reminded the public of the TH7 project open house on August 11. The City is receiving notice that speeds on Edmonton Avenue appeaz to be higher that 30 mph. John Rodeberg noted if it ~s not posted, the limit is 30 mph. There is a pedestrian bike path off road, so safety issues should be minimal. ~. CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS Motion by Haugen, second by Peterson to approve the payment of claims as presented. Motion passed unanimously. 12. ADJOURN Motion by Arndt, second by Peterson to adjourn the meeting at 7:40 p.m. Motion passed unanimously. ~ ~~~ MINUTES HUTCHINSON CITY COUNCIL SPECIAL MEETING THURSDAY, AUGUST 11, 2005 1. CALL TO ORDER - 6:00 P.M. ayor teve oo ca e t e meeting to order. Members present were Bill Arndt, Jim Haugen, and Kay Peterson. Member absent was Casey Stotts. Others present were Gary Plotz, City Administrator, Marc Sebora, City Attorney and John Rodeberg, Director of Public Works. 2. PUBLIC HEARING (a) MUNICIPAL CONSENT HEARING - TRUNK. HIGHWAY IMPROVEMENT PROJECT John Rodeberg, Director of Public Works, gave the presentation as to the scope of the Highway 7 Central Project, formally known as Letter No. 1/Project No. 06 - O1, Highway 7 Central Improvements Mr. Rodeberg explained the components of the reconstruction of Highways 7, 15 and 22 and discussed such topics as geometric layout, maintenance, snow removal, aesthetics and other issues. Mr. Rodeberg explained that this project is scheduled to begin in the spring of 2006 • beginning with the portion between High Street/5`" Avenue NE and Bluff Street and continuing west thereafter. Mr. Rodeberg explained that the Crow River Dam construction project would, if all goes well, tie into this project in late 2006. He also explained that there would also be a pedestrian underpass west of School Road that would need to coordinate with the Highway 7/22 construction in the area in 2007. Mr. Rodeberg explained that there may be issues with regard to the statue of Chief Little Crow and that the statue may possibly have to be moved because of the construction. Mr. Rodeberg explained that alternate roads will be available for traffic to use in the city of Hutchinson during the highway 7/22 construction. Cooperative agreements will be worked out between the city and adjacent landowner for landowners beginning in the fall of 2005. Marion Koebnick, 545 Hwy 7 West, had concerns about the ability ofhaving a double driveway with the neighboring property. Mr. Rodeberg indicated that a shared drive way would perhaps be a possibility in this project and agreed to look into the matter. David Schwimmer, 1025 Echo Drive SE, spoke to concerns about the center turn lanes in the project and about ice and snow removal. Mr. Rodeberg explained that for the most y~~ CITY COUNCIL SPECIAL MEETING MINUTES-AUGUST 11, 2005 part the center turn lane will allow traffic to turn in either direction and that the city is planning on completing some snow removal on the sidewalk directly adjacent to the roadway (due to the volume of snow expected and the lack of boulevard), however the individual property owner still has primary responsibility to ensure that sidewalks are safe. Motion by Arndt, seconded by Haugen, to close the public hearing. Motion carried unanimously. Mayor Steve cooked the thanked all the individuals who worked on the project and the public for their interest in attending the hearing. Motion by Arndt, seconded by Peterson to approve Resolution No. 12787 regarding the final layout approval for the highway trunk for TH 7 and 22, Letting No. 1, Project No. 06-O1, with the following contingencies: 1. The pond location southeast of the electrical plant needs to be reviewed. There are potential conflicts with conduits and other obstacles. 2. The ponds near Subway appear to conflict with alleys and utility easements and need to be reviewed. 3. The portion of 2nd Avenue NW proposed to be turned into a parking area needs to be reviewed for feasible access. 4. The two properties just west of Kouwe Street on the north side of Highway 7 would like to share a single driveway opening. The City and MnDOT will work to facilitate that option, if possible. • The motion passed unanimously. Motion by Peterson, seconded by Haugen, to adjourn the meeting at 6:30 p.m. Motion carried unanimously. ATTEST: Steven W. Cook Mayor • Gary D. Plotz City Administrator ~~> MINUTES BID OPENING LETTING NO.6B/PROJECT NO.05-21 AUGUST 5, 2005 2005 AIRPORT IMPROVEMENTS -FUELING Present: Ken Merrill, Finance Director and Melissa Starke, Recorder Ken Merrill, Finance Director, called the bid opening to order at 10:02 a,m. Mr. Merrill dispensed with the reading of Publication No. 7180, Advertisement for Bids, Letting No. 6B, Project No. OS-21. Mr. Merrill noted that the City Council reserves the right to reject all bids and to waive any informalities and irregularities as signed by Gary D. Plotz. The following bids were opened and read: B&H Petroleum Equipment Company Base Bid Amount: $136,900.00 Mankato, MN Alternate #1: $149,314.00 Independent Petroleum Services, Inc. Base Bid Amount: $161,671.00 Baxter, MN Alternate #1: $198,891.34 Mark iI of Fosston, Inc. Base Bid Amount: $152,114.00 Fosston, MN Alternate #1 : $.178,445.00 Minnesota Petroleum Service ]nc. Base Bid Amount: $122,688.00 Columbia Heights, MN Alternate #1: $134,689.00 Protophase, Inc. Base Bid Amount: $127,530.00 Hutchinson, MN Alternate#L• $134,820.00 R&R Petroleum Base Bid Amount: $176,279.00 Fargo, ND Alternate #1: $200,814.00 Westmor Industries LLC Base Bid Amount:. $131,039.00 Tea, SD Altemate #1: $146,759.00. Zahl Equipment Base Bid Amount: $172,310.00 Mankato, MN Alternate # 1: $202,3 ] 0.00 The bids will be referred to staff for review and a recommendation. *Letting No. 6A, Project No. OS-20: The following quote was opened for 2005 Airport Improvements -Electrical: ~C~) • Quade Electric Inc. Hutchinson, MN Quote Amount $44.900.00 *No formal bid required as engineer's estimate was less than $50,000. The bid opening adjourned at 10:12 a.m. ATTEST: Steven W. Cook, Mayor Gary D. Plotz, City Administrator ~ ~~~ r~ U BOARD OF DIItECTORS ANNUAL MEETING -July 19, 2005 Hospital -Conference Room A/B Members present were: Wayne Fortun, Chairperson; Mike Mueller, Vice Chairperson; Sherry Ristau, Secretary; Steve Snapp Trustee; and Bernie Knutson, Trustee. Absent: Dr. Al Lira, Chief of Staff; Kay Peterson, Trustee (excused) Others present were: Philip Graves, President; Pam Lazson, Finance, Information and Material Services Division Director; Robyn Erickson, Caze and Program Support Services Division Director; Cary Linder, Foundation Director; Linda Krentz, Bums Manor Nursing Home Administrator; Jane Lien, Acute Caze Division Director; Dr. Steven Mulder, Quality & Patient Safety Services Director and Corrinne Schlueter, Recorder. Chairperson Fortun called the meeting to order at 5:33 PM. Consent Agenda • Chairperson Fortun reviewed the following consent agenda items. The agenda was as follows: 1. Past Meetin Minutes (June 21, 2005 2. Statistical Re ort (s azate attachment 3. Financial Re ort June 2005 4. Accounts Pa able and Cash disbursements June 2005 5. Auxiliary Meetin Minutes (June 2005 • Following discussion, Snapp made a motion, seconded by Mueller, to approve the consent agenda as presented. All were in favor. Motion carried. ~~ I. New Business. A. Medical Executive Committee Meeting Minutes & Credentialing. Graves provided a report on the recent Medical Executive Committee Meeting. The following practitioners were recommended for membership to the Medical Staff. Initial. Rebecca Wood, MS, LP Heather Scholl, FNP Allied Health Ind. Allied Health Ind. Psychology Nurse Practitioner Advancement from Provisional. Paul Coleman, PA-C Tanya Halvorsen, MD Thomas Matson, MD Allied Health Dep. Active Courtesy Physician Assistant Pediatrics Orthopedics 51~~~ f Governing Board Page two July 21, 2005 Eric Nelson, MD Chad Robbins, DO Gordon Walker, MD Reappointments. Sanford Anderson, MD Colleen Gaspers, FNP Bette Corbid, FNP Julie Krenik, MD Paul Mittelstadt, MD Ashok Ojha, MD Tracy Powell, MD Denis Rooney, CRNA Steve Sonnek, MD Scott Staples, MD Bazbara Strandell, CRNA Additional Privileees. Michelle Quale, CNM • Resignations. William Ford, MD Tammy Fox, MD S. Murthy Tadavarthy, MD Active Psychiatry Courtesy General Surgery Active Orthopedics Courtesy Pediatrics Allied Health Ind. Nurse Practitioner Allied Health Ind. Nurse Practitioner Active Family Medicine Courtesy Emergency Medicine Active Internal Medicine Courtesy Emergency Medicine Allied Health Ind. Anesthesia Active Psychiatry Active Family Practice Allied Health Ind. Anesthesia Vacuum Extractions Radiology Radiology Radiology Following discussion Ristau made a motion, seconded by Snapp, to grant membership and privilege and to accept the resignation of the above listed practitioners as recommended by the Medical Executive Committee. All were in favor. Motion carried. • B. Strategic Plan Update. Graves and members of Senior Management Team provided a second quarter status update of the strategies within the five goal areas of the Strategic Plan. C. Computed Tomog_raphy (CTl Scanner. The Board reviewed a request for purchase of a new sixteen slice replacement CT System, including a Vital Images Workstation. The current system is a single slice unit which is five yeazs old and obsolete. Four bids were received and analyzed. The apparent low bidder, Siemens Medical Solutions & Delta Med Systems met the minimum specifications at a price of $678,438.00. S~~J,,. r • Governing Boazd Page three July 21, 2005 Following discussion, motion was made by Ristau, seconded by Knutson, to recommend to the City Council that the bid be awazded to Siemens Medical Solutions & Delta Med Systems at a cost of $678,438.00 for the sixteen slice CT System. All were in favor. Motion carried. D. Audit and Compliance Committee Report. Snapp reported on the minutes from the Audit and Compliance Committee which was held recently to discuss the content of the agreement between the Attorney Genera] and Hutchinson Area Health Care. Also presented was the financial performance of the organization along with the quarterly ratio analysis. Following discussion, Knutson made a motion, seconded by Mueller, to accept the Audit and Compliance Committee Report as presented. All were in favor. Motion carried. II. Reports. A. President. Nothing further to report. B. Acute Care. Lien reported on a new procedure that was recently performed in the Operating Suite. Equipment was brought in for trial purposes from the Stryker Corporation for assisting the surgeons in clinical navigation and mapping in the performance of Orthopedic and ENT procedures. This new technology is to be used for precise measuring of the affected areas on patients. HAHC will evaluate the cost/ benefit impact of this technology for consideration of purchase in the future. C. Care and Program Support Services. Nothing further to report. D. Community Care Programs & Services. Nothing further to report. E. Finance Information & Material Services. Nothing further to report. F. Senior Care Programs & Services. ~ Nothing further to report. G. Director of Medical Affairs. Nothing further to report. H. Foundation Director. The Scramble for Life Golf Outing is scheduled for August 8'". • I. Patient Safety & Performance Improvement Committee. Mulder reported the JCAHO Survey is scheduled for September 29'a and 30a'. SL~J~ ~ 1 Governing Board . Page four July 21, 2005 An educational tape from the American Hospital Association was shown following the meeting. The tape provided infonnation regazding cost and service demand for the health care system. Fortun requested if additional business needed to be discussed at the meeting. Hearing none, Snapp made a motion, seconded by Knutson to adjourn. All were in favor. Motion carried. Respectfully submitted, Corrinne Schlueter Recorder • • Sherry Ristau Secretary 5 L~JI ,~ PIONEERLAND LIBRARY SYSTEM REVENUE AND EXPENDITURE REPORT JUNE 30, 2005 HUTCHINSON r~ u M-T•D Y-T-D % OF % OF AMOUNT AMOUNT BUDGET BUDGET YEAR UNRESERVEDlDESIGNATED FOR WORKING CAPITAL 0.00 126,909.29 108,621.00 118.66% 50% CITY OPERATING 0.00 52,027.00 104,054.00 50.00°h 50% CITY AUTOMATION 0.00 6,136.50 12,273.00 50.00°h 50°h COUNTY OPERATING 0.00 24,324.26 49,670.00 48.97°h 50% COUNTY AUTOMATION 0.00 3,340.50 6,681.00 50.00°h 50°h CHARGES, FINES 575.80 2,826.99 6,400.00 44.17% 50°h COPIES (COPIER, FAX, COMPUTER) 426.20 1,707.60 3,ODD.00 56.92% 50°h GIFTS 16.OD 1199.95 1,500.00 80.OOYo 50% BOOK SALES 0.00 0.00 0.00 0.00% 50°h OTHER 0.00 185.00 1,000.00 18.50% 50% TOTAL REVENUES 1,018.00 220,657.09 293,199.00 75.26% 50% EXPENDITURES SALARIES -8,735.19 -51,871.66 -122,000.00 42.52°h SD% HEALTH INSURANCE -355.76 -2,734.56 -0,624.00 -06.16°h 50°h PAYROLL TAXES -1,053.54 -6,298.41 -16,136.00 59.03°h 50°h BOOKS -1,310.27 -13,276.08 -29,000.00 45.78°h 50°h PERIODICALS -0.00 -3,165.23 -0,499.00 -70.35°h 50% VIDEOS -0.00 -72.41 -1,434.00 5.05% 50°h TELEPHONE -34,19 -140.29 -020.00 -33.40% 50% POSTAGE -60.00 -97.00 -200.00 48.50% 50Y° NEW EQUIPMENT -0.00 -653.00 -6,000.00 -10.88% 50% MAINTENANCE/CONTRACTS -0.00 -0.00 -1,428.00 0.00% 50% SUPPLIES/PRINTING -127.23 -826.13 -2,080.00 -39.72°h 50% ~ROMOTIONALIPROGRAMS/ADS -105.55 -631.22 -800.00 -78.90% 50% NSURANCE(WORK COMP/CONTENTSlLIABILITY) -0.00 -0.00 -1,800.00 0.00% 50°h PROFESSIONAL FEES (AUDIT) -0.00 -D.00 150.00 0.00% 50% BOOKKEEPINGIOVERDUES -353.42 -1,837.58 -0,200.00 -03.75°h 50% CONT EDlMTGS/MLGE -13.50 -202.92 -500.D0 -00.58°h 50°h SALES TAX -0.00 -0.00 -250.00 0.00°h 50°h AUTOMATION SERVICES -1,579.50 -9,477.00 -18,954.00 -50.00% 50°h TOTAL EXPENDITURES -13,726.15 -90,683.51 -214,475.00 x12.28°h 50% UNRESERVEDlDESIGNATED FOR WORKING CAPITAL -12,710.75 129,973.58 78,724.00 165.10% 50% L REVENUE: 51~~a ~"uldfrt~ Pere:ats h~ 7y,~e F~1r the .?~Jil~xth ~f ° ~Tu1,~, 2QG~S 11 . ~ ~'I ~,.~ ~~,~,~tF vALI;;~,T;i rT: ~J~10 FiESIDI~NTIAL RESHINGLC _.. i i $q.00 (115 ._.~.. RESIDENTIAL RESIDE ~ $q.qq 02q RESIDENTIAL. VWINDQWV' REPLACEMENT _ 11 _ $q.gt1 ._ __w__..w___.. D25 _._._ m_... E?(CAVATIC7N 4'' ~q.qQ '' 0130 035 FENCE CEMEr'~fT FLAT'u"~'C1RK ~......_..~...~.._.__ ~..._ ...~...~~ _~.....,... $q. gt1 16', O.qq q55 SIGN .._. ~ _ $q.qq .__ 06q DECK. g', $p.qp '' Qs5 SrIEO ~,.. ....... ~q qa 075 ._m__._~______ ._._____...~e__.......__..m__ FINISk16ASI~MENT __..._.___ . ~.~~.... .....m... ~, X0.00 . 1q1 __ ~ SIN!CaLE-FAMILY DETACbiED 4', ~41fl,6Q0.4q __.._.......___~_ 1 q2 SINGLE-FAMILY ATTACHED 9 .. 4 $43~,ggq.t~q ~•2q ~z~ ~__._. .___...,_w..__ _.,..__.__._ _.__w ._._._ INDUSTRIAL ~~ ~TC~1~1=~ ~ cusTCr~n~uz s~~vl~~s _..._.. ~_.._._. --- _._...,_.._.. w._ ......__... - 1'', $2,g1500q.00 '' ~ ~~7~ qaq qq ..a__.....______ ._.___. 'szs ar~I~I~ Nc~N~zESIDENTIAL ____._ ~ ~ss~ 5~~.00 _ 4 RESIDENTIAL HO~M'E ADDtlTIC7NS ~ 4 $78,5Qq.gq ',, 4~ta __ RESIDEN d IAL C'.~",R,A~GC A17D9'fIC'rNS _ , 1 $S,gOq,gp l"OTAL ITEP.~1S 99 $4,549,C125.gq Num' er raf lrrspectiaras far ~'r~ month = ,"~ luuvr~ber of ~'lurrabarrg 1'~erara~fs fpr the rr~onth = ~ ,~ ~~ ;,; MINUTES • HUTCHINSON PLANNING COMMISSION Tuesday, July 19, 2005 Hutchinson City Council Chambers CALL TO ORDER 5:30 P.M. The meeting was called to order by Chairman Dean Kirchoff at 5:30 p.m. with the following members present: John Lofdahl, Jim Haugen, Mike Flaata, Farid Currimbhoy, Robert Hantge and Chairman Kirchoff. Absent: Lynn Otteson Also present: Julie Wischnack, AICP, Planning Director, Kent Exner, City Engineer, Marc Sebora, City Attorney and Bonnie Baumetz, Planning Coordinator 2. APPROVAL OF MINUTES a) Consideration of Minutes dated June 21, 2005 Mr. Hantge moved to approve the minutes of June 21, 2005 as submitted. Seconded by Mr. Flaata. The minutes were approved unanimously. 3. PUBLIC HEARINGS • a) CONSIDERATION OF A RECONFIRMATION OF HUTCHINSON FIFTH AVENUE INDUSTRIAL PARK PRELIMINARY PLAT AND CONSIDERATION THE FINAL PLAT Chairman Kirchoff opened the hearing at 5:35 p.m. with the reading of publication #7357 as published in the Hutchinson Leader on July 7, 2005. Ms: Wischnack commented on the request and explained the reason for the reconfirmation of the preliminary plat. She stated the 180 days has expired. The notice was republished. The final plat is also included in the request. She explained a permit has been given for excavation to prep for future building. The property meets the zoning requirements. She commented on the following staff recommendations: The subdivision ordinance requires tree planting. The City Forester has provided an analysis of the existing site. The tree planting could be done when a building is constructed (as would be the case in residential subdivisions). There is an expectation that the isolated accessory structures would be removed from the property on the north side of road within 3 years. A storm water pond would be required for the development and will be constructed as part of the grading improvements on Lot 2, Block 2. • 5~~~`~ Minutes Planning Commission -July 19, 2005 Page 2 Mr. Hantge asked if the recommendations were the same as the previous plat. Ms. Wischnack stated the recommendations are the same. She explained the aoolication fee is not required again for the identical plat. Mr. Haugen made a motion to close the hearing. Seconded by Mr. Lofdahl the hearing closed at 5:38 p.m. Mr. Haugen made a motion to recommend approval of the request with staff recommendations. Seconded by Mr. Currimbhoy. The motion carried unanimously. Ms. Wischnack stated this item will be placed on the City Council consent agenda at their meeting held July 26, 2005 in the Council Chambers at 5:30 p.m. b) CONSIDERATION OF A CONDITIONAL USE PERMIT TO ALLOW THE PAINTING OF A MURAL ON THE NORTH WALL OF THE ECONO FOODS BUILDING LOCATED AT 205 WASHINGTON AVENUE EAST Chairman Kirchoff opened the hearing at 5:40 p.m. with the reading of publication #7358 as published in the Hutchinson Leader on July 7, 2005. Ms. Wischnack explained this request is an EDA project and turned the meeting over to Miles Seppelt, EDA Director. Mr. Seppelt updated the Planning Commission on the project and explained the idea came from the Downtown Plan which suggests a large public art exhibit. He stated he met with Mr. Roger Olsen approximately . one year ago with a positive outcome. Also, there is an agreement with Nash Finch. He explained he is still working on funding of the mural and would ask the Planning Commission to move the request to a future meeting one to two months from now. He commented on the 30 year guarantee with a 15 year touch up. Mr. Seppelt commented on the artist and the life of the mural. He explained Southwest MN Foundation has offered to donate the paint. It was suggested to discuss with the artist to add different ethnic groups and a combination of men and women in the mural. Mr. Seppelt stated he will be soliciting input from the veterans. Discussion followed on the removal of the trees and replacement with a lower hedge. Mr. Seppelt suggested the item be tabled and agreed to the 60 day waiver. The Commander of the VFW stated they have no problem with the mural. Mr. Hantge made a motion to close the hearing. Seconded by Mr. Haugen the hearing closed at 5:45 p.m. Mr.Hantge made a motion to table the request. Seconded by Mr. Flaata. Ms Wischnack stated there • will be followup in September. The motion carried unanimously. sla~~ Minutes Planning Commission -July 19, 2005 Page 3 4. NEW BUSINESS • a) CONSIDERATION OF LOT SPLIT LOCATED AT 10 MAIN STREET S. REQUESTED BY HUTCHINSON PROPERTIES, LLC Ms. Wischnack explained the lot split to divide a building on Main Street. She commented on the lot sizes in the C3 district and the following recommendations by staff: 1. Any relocation of services will be at the owner's expense. (Presently, there are two meters located on the building - one for the jewelry store, one for the hotel). 2. Deeds documenting the change in property line need to be filed by the property owners. 3. Any additional subdivision of the parcels would require platting of the property. Mr. Lofdahl made a motion to recommend approval of the lot split with staff recommendations. Seconded by Mr. Currimbhoy. The motion carried unanimously. 6) CONSIDERATION OF AMENDING THE ORDINANCE TO INCLUDE THE PARKING GENERATION MANUAL AS THE PARKING REGULATION FOR THE CITY Ms. Wischnack commented on the comparison charts. She explained the parking manual is compiled from 36 years of history. Discussion followed on the number of unrelated people allowed to reside in an apartment. There was also discussion of snow removal and garage use. Ms. Wischnack stated the special requirements should stay in the ordinance and the manual should be adopted by reference. She explained there are also more uses listed in the manual. Mr. Exner explained the manual is thorough. He stated the present ordinance is vague and the parking manual is a good tool. Ms. Wischnack explained we would strike everything in the present parking ordinance and leave the special requirements. Discussion followed on the requirements of the present ordinance and the older parts of the City. Ms. Wischnack suggested to leave the single and two family and townhouses as in the present ordinance. Discussion followed on the philosophy of not enough parking or taking away green space. There was also discussion on the concern with parking in the street in higher density residential areas. 5(~~~I Minutes Planning Commission -July 19, 2005 Page 4 Mr. Exner commented on the width of the streets for on-street parking: • He stated there were no large parking concerns on the traffic survey Staff will keep the Planning Commission informed on the language of the ordinance. c) DISCUSSION OF THE NEED TO REGULATE TUBE TRUSS TYPE GARAGES/SHEDS IN THE RESIDENTIAL DISTRICTS Ms. Wischnack informed the Commissioners of the action by City Council to table the City request for a tube building. She explained the City Council directed staff to refer the possibility of an ordinance change to the Planning Commission to discuss further. She commented her research of other cities. Mr. Lofdahl reminded the Commissioners of the fact only sheds over 120 sq. ft. would require meeting the building code wind and snow loads. Ms. Wischnack showed pictures of this type of building already in place in Hutchinson. Mr. Flaata stated the approval of this type of building should be fair in all of the City. There was much discussion regarding the wording and areas to possibly allow the buildings. I-2 seemed to be appropriate and not residential. Staff will discuss and provide some language at another meeting 5. OLD BUSINESS NONE 6. COMMUNICATION FROM STAFF NONE 7. ADJOURNMENT There being no further business the meeting adjourned at 6:40 p.m. LJ 5C~-~~I r1 L_J C 2005' '~ - CITY OF HUTCHINSON FINANCIAL REPORT 2005!. (JULY ' -~ IREVENUEREPORT-GENERAL _ 2004 -- JULY _ 2005 JULYI, ___ 2005 ~~ YEAR TO', ~ _ 2005! 2005 ADOPTED', BALANCE, JULY~',_ ERCENTAGEi ~' _ ~ I YTD MONTH ATE ACTUAL 1 BUDGET' REMAININGI USED' 1 I ~- TAXES LICENSES _ 1,580,046.95 25,712,00 ' 1,025.0 _ 0 37,096.40 3,618,290.00 3,618,29D.00 44,900.00 7,803.60 0.00°~ ~~. 82.62%!. PERMITS AND FEES INTERGOVERNMENTALREVENUE ~~ 289,542.56 1,369,499.66 59,299.63 1,039,333.49' 258,950.94 1,085,533.46 292,500.00 33,549.06 2,369,536.00 1,284,002.54 _ 88.53°k' 45.81%'~ CHARGES FOR SERVICES 696,220.34 150,941.32 754,160.72 1,482,195.00 ', 728,034.28 50.88%! FINES 8 FORFEITS 29,262.66 5,303.41 29,871.96' 68,000.00 38,128.02 43.93%, -454.36 INTEREST -5,642.151 148.38 -13,988.60 40,000.00 53,988.60 ~ . -34.97Yoi REIMBURSEMENTS 122,318.82' -21,704.49 125,987.85 284,063.00 158,075.15 '. 44.35°/a' TRANSFERS 481,484.03 8,552.69 273,803.47 1,546,000.00 1,272,196.53 .. 17.71%! SURCHARGES -BLDG PERMITS 3,459.03 -2,015.63 2,431.23 2,431.23 1 0.00%~ TOTAL 4,591,449.561 1,240,883.80 2,553,847.45 9,745,484.00 7,191,636.55, 26.21%! j 2005 ; CITY OF HUTCHINSON FINANCIAL REPORT! 2005'~.~ _ ,JULY j _____ _ ;EXPENSE REPORT-GENERAL I ~ __ 2004 _ JULY YTD 200 J_____ 2005 _ _ 2005' _ 2005 JULY; JULY'! _YEART i0 ADOPTED! BALANC~ERCEN__TA_GEI. MONTH ATEACTUALi BUDGET'' REMAINING USED'. ~ ~ ~ - ~ ~ ~ 00 1 MAYOR 8 CITY COUNCIL _ 25,566.92 '~ 56,440.00'. 28,481.68 49.54% 4,382.07 27,958.32 002 CITY ADMINISTRATOR 140 590.67 18 867.68 155 929.86' 571.00', 142,641.14 52.23%-: 298 003 ELECTIONS -~ I , 1 048.16 , , 544.35' , 6,600.00' 6,055.65 8.25%!. 004 FINANCE DEPARTMENT 1005 MOTOR VEHICLE , 219,599.31 110,651.19 ~ 59,104.691 248,405.24 15,809.79 111,617.59 _ 500,551.00' 252,145.76 49.63%'. 216,626.00'. 105,006.41 51.53%'I~ ~ 006 ASSESSING 1007 LEGAL 95,337.04 18,119.521 116,641.97 46,000.00! 44461 6001 46,000.00 0.00%i 47,804.031 70.93%I 008 PLANNING 94,353.01 15,943.11'.. 103,056.72 172,156.00 69,099.28 I 59.86%:~ `------ 009 INFORMATION SERVICES ! 64,899.91' 10,575.59'' 79,166.41 176,299.00 - 97,132.59 i ___ _44.90%! 1110 POLICE DEPARTMENT i 1,348,796.20 ' 220,716.921 1,406,960.16 2,595,114.00 1,188,153.84 _54.2_2%' 1115 EMERGENCY MANAGEMENT I 116 SAFETY COMMITTEE _J 4,986.46 __ __ 8,334.43 15,756.60 _ 3,825.001 5,187.36 12,000.0 18,947.00 0 ssso)~ 13,759.64 131.31%' _____27.38%0! 120 FIRE DEPARTMENT I 158,011.30 28, 336 336 8 ,4 i4 159,219.42 405.631_001 246,411.58 39.25°h 130 PROTECTIVE INSPECTIONS ~ i 108,024,25 15,982.78 108,470.20 226,960.00 118,489.80 ___47.79°k ~. ' 150 ENGINEERING ! 240,790.96 51,263.25 351,390.45 549,137.00 197,746.55 i 63.99%;' 152 STREETS 8 ALLEYS 439,065.53 528,190.22 86,213.89! 873,668.00 345,477.78 60.46°kj __ i 160 CITY HALL BUILDING _ ' 62,969.77 201 PARK/RECREATION ADMINISTR 99,341.60 ~--- ---- 1202 RECREATION 126,556.61 _ 10,091.27 80,844.75 13,016.04, 103,589.57 31,986.71' 129 354.25 141,475.00 185,712.00 190 836 00 1 60,630.25 82,122.43 61,483.75 _ 57.1_4°k'. 55.78%'. 67.78°/i'. _ 203 SENIOR CITIZEN CENTER T 37 248.87 _ 1 3 876.65', 35,204.12 1 66,828.00~~. 31,623.86 1 52.68%, '.~ 204 CIVIC ARENA ~_ 159,334.75 17,546.9311 164,027.01 --- ~,____ 268,549.00' 124,521.99 ', __ 56.85%~:; -- - -- 5 Ca,~s 20051 __ ___ '''CITY OF HUTCHINSON FINANCIAL REPORT'', ~II -- --~- ,- 1-------- • ~JYLI I` __y_. LYV4 ~ LUV,: LUV~'~ __- LYVY'~ iREVENUE REPORT- GENERAL ~ ACTUAL'I ~_ _ Year to Dated ~ ' TAXES ~__ __ 11,580,046.95 ~ _ JULY! -YEAR TO! MONTH DATE AC7UAL I __ 0.001 __ 0.00 ADOPTEDII f BUDGET ' 3,618,290 00 ~ BALANCE ERCENTAG_E REMAINING USED_ 3,61.8 290.00 '. _ 0 00% jLICENSES ~ 2~ 5,712.00 ~ li - '~ 289,542.56 :PERMITS AND FEES ~ 1 025.00 37,096.40 1 59,299.631 258,950.9 44,900 00+ 4292,500.00 _ 7,803.60 1 33,549.06 82 62% 86.53%'. ~ ;INTERGOVERNMENTAL REVENUE ~ 1,369,499.68 ':, 1,039,333.49 1,085,533.46 ~I, 2,369,536.00 1,284,OD2.54 45.81% '. CHARGESFORSERVICES 696,220.34 150,941.32 754,160.72 1,482,195.OD 728,034.28 50.88°k.. I. FINES & FORFEITS 29,262.68 5,303.41 29,871.98 , 68,000.00 38,128.02 43.93%' #REF! ~ I __#REFI !INTEREST I (5,642.15 ':REIMBURSEMENTS '' 122,318.82 #REFI 148.38 -21,704.4911 #REFI ~ (13,988.60 125,967.65 #REFI 40,000.00 284,0 36 00 #REF! 53,988.60 1 158,075.15 O.DO%'. -34.97%' 44.35% T~RANSFERS~' II 481484.03 ~~ 8 552.69 273 803.47 546 000.00 1 1,272,196.53 17.71%'. ~SURCHA~ RGES-BLDG PER MITS I 3 459.03 ____ , 5.63 , 2 431.23 , , 0.00 2,431.23 0.00%'I. ':TOTAL _ _ _ , ~ 4,591,449.56 1,240,883.60 _ , 2,553,847.45 ~ 9,745,484.00 7,191,636.55 26.21%' _ r- ---- 2005 IJULY _ _ _ _ _ ___ 2004 EXPENSE REPORT-GENERAL I JULY 2005 JULY 2005 YEAR TO 2005 ADOPTED' 1 2005 BALANCE JULY' ERCENTAGE, 'SUMMARIZED YTD MONTH ATE ACTUAL BUDGET ~I REMAINING USED ~- ~ ! GeneralGovt. 815,016.00 ~ 152,893.72 924,165.21 1,779,164.00 854,998.79 51.94°k' _ __ !Public Safety I 1,619,818.21 277,494.97 1,695,593.74 3,258,652.00 ; 1,563,058.26 _ 52.03°k ~Slreets&Alleys 'i ___.___ 679,856.49 jParks & Recreation ~ _ I 1,274,103.90 - _ 137,477.141 245,866.951 879,560.67 1,348,061.16 1,422,805.00 I___543,224.33 2,248,378.00 900,316.64 _______61_82% 59.96%' Miscellane -- - _ -_ _ _-- a us 4 4 - ~ ~__ ~~ AL ~4 735,744 32 _- ~__ 287 445 5 134 846.51 ~ 841 190 O6 - _-? 1 036,485 00 749 039 27 9 745,484 00 1 4,610 637 49 I - - -~ 27.73°k 52.69%' __ ._._ _: i---- r ~. 5 (Q~ City of Hutchinson Statement of Revenues, Expenditures -Water Sewer Compost Rec clip Refuse 07/31/05 _ Annual _ Current Year To Budget Percent _ Prior Year Prior Year To Pereent - ~ Bud et Month Date Remainin Used Bud et Date Used 404 REFUSE -RECYCLE _ 4001 REVENUES 4100 TOTAL INTERGOVERNMENTAL REVENUE 4450 TOTAL SALES_ ~ 4001 REVENUES __ 160,000.00 914,950.00 1,074,950.00 12,303.00 79,058.05 91,361.05 61,515.00 463,555.22 525,070.22 98,485.00 451,394.78 549,879.78 38.4°~ 50.7% 48.8% .00 .00 .00 6001 EXPENDITURES 6105 TOTAL SALARIES & FRINGE BENEFIT _ 106,539.00 3,564.29 17,112.69 89,426.11 16.1% 6200 TOTAL SUPPLIES, REPAIRS 8 MAIN _140,450.00 251.45 37,770.80 102,679.20 26.9% _ 6300 TOTAL CONSULTING 6306 TOTAL OTHER SERVICES & CHARGES 18,500.00 833,000.00 0.00 46,675.62 1,524.09 727,080.40 16,975.91 105,919.60 6.2°h 87.3°k 6900 TOTAL MISCELLANEOUS 0.00 0.00 0.00 0.00 0.0% 6905 DEPRECATION TOTAL EXPENDITURE 178,540.00 1,277,029.00 14,795.98 65,287.34 103,571.86 887,060.04 74,968.14 389,968.96 58.0% 69.5°h NET INCOME (LOSS) 26,073.71 (361,989.82 _ Non income statement budget _ 7000 TOTAL CAPITAL OUTLAYS __ 15,000.00 6,356.67 7 332.53 7,667.47 48.88°h V ` r\ Ci of Hutchinson Statement of Revenues, Expenditures -Water Sewer Compost Rec clin Refuse 07/31/05 - Prior Prior - __ Annual Current Year TO Bud et Percent Year Year TO - Percent ___ ~~ _ Budget Month Date Remaining Used Bud et Date Used 4005 COMPOST 94,669.00 a001 REVENUES 4100 TOTAL INTERGOVERNMENTAL REVEN UE 32,000.00 0.00 36,276.50 -4,276.50 713.4°k -4,276.50 4250 TOTAL CHARGES FOR SERVICES 650,000.00 86,837.73 247,984.61 402,015.39 38.2°h 402,015.39 4450 TOTAL SALES 1,951,394.00 147,700.69 1,242,702.38 708,691.62 63.7% 708,691.62 4700 TOTAL REIMBURS E M ENTS 25,000.00 15.41 71.81 24,928.19 0.3% 24,928.79 __ _ _ 4001 REVENUES 2,658,394.00 234,553.83 1,527,035.30 7,131,358.70 57.4% 0.00 0.00 0.00 0.00 1,131,358.70 6001 EXPENDITURES 6105 TOTAL SALARIES 8 FRINGE BENEFIT 589,035.00 51,973.93 324,703.93 264,331.07 55.1°~ 6200 TOTAL SUPPLIES, REPAIRS 8 MAIN 152,800.00 10,886.24 95,646.49 57,153.51 62.6% 6300 TOTAL CONSULTING __190,000.00 6,370.52 117,250.40 72,749.60 61.7°h 6306 TOTAL OTHER SERVICES & CHARGES 387,250.00 33.338.00 178,757.45 208,492.55 46.2% _ 6800 TOTAL COST OF SALES 81NVENTORY ADJ 769,000.00 11,551.46 717,035.06 51,964.94 93.2°~ 6900 TOTAL MISCELLANEOUS 16,400.00 0.00 2,677.68 13,722.32 16.3% 6600 TOTAL DEBT SERVICE 18,300.00 517.13 2,585.64 15,714.36 14.1°h 6905 DEPRECATION 210,000.00 16,157.02 113,099.14 96,900.86 53.9% TOTAL EXPENDITURE _ 2,332,785.00 130,794.29 1,551,755.79 781 029.21 66.5°~ NET INCOME (LOSS) 103,759.54 (24,720.49) Non income statement bud et 7000 TOTAL CAPITAL OUTLAYS 103,000.00 17,301.66 151,218.27 -48,21827 146.8°h 6600 TOTAL DEBT SERVICE 78,300.00 0.00 63,170.53 15,129.47 - 80.7% 181,300.00 148,095.95 214,388.80 33,088.80 118.3°~ V r ~(p/ V i • City of Hutchinson Statement of, Revenues, Expenditures -Water Sewer Compost Recycling Refuse _ _ 07/37/05 _ Prior Prior Annual Current Year To Bud et Percent Year Year To Percent ~BUd et Month _ Date Remainin Used Bud et Date Used 406 WATER __ _ _ 4001 REVENUES 4250 TOTAL CHARGES FOR SERVICES 20,000.00 1,650.00 9,900.00 29,900.00 0.00 9,900.00 0.00 4450 TOTAL SALES 1,572,000.00 136,721.24 684,377.39 2,256,377.39 43.54% 1,255,000.00 627,512.67 50.00 4700 TOTAL REIMBURSEMENTS 4001 REVENUES 0.00 1,592,000.00 123.00 138,494.24 318.04 694,595.43 318.04 -897,404.57 0.00 43.63% 0.00 1255,000.00 746.11 638158.78 0.00 50.85 6001 EXPENDITURES 6105 TOTAL SALARIES 8 FRINGE BENEFIT 292,948.00 26,036.72 160,993.53 131,954.47 54.96% 318,375.00 136,096.63 42.75% 6200 TOTAL SUPPLIES, REPAIRS 8 MAIN 101,735.00 1,311.98 38,565.10 63,149.90 37.93% 94,160.00 33,646.94 35.73°k 6300 TOTAL CONSULTING 6306 TOTAL OTHER SERVICES & CHARGES 6600 TOTAL DEBT SERVICE 6700 TOTAL TRANSFERS OUT 2,178,500.00 228,775.00 14,745.00 60,000.00 87,504.27 9,101.38 1,035.93 0.00 319,653.22 93,198.34 7,251.53 0.00 1,858,846.78 135,578.66 7,493.47 60,000.00 14.67°k 40.74% 49.18°~ 0.00°k 467,900.00 216,775.00 16,705.00 57,000.00 16,375.66 96,454.57 5,307.41 0.00 3.50% 44.50°k 31.77% 0.00°~ 6900 TOTAL MISCELLANEOUS 10,400.00 100.00 2,621.12 7,778.88 25.20°h 24,900.00 1,419.43 5.70% 6905 DEPRECATION 6001 EXPENDITURES 235,000.00 3,122,103.00 26,109.98 151200.26 182769.83 805,070.66 52,230.18 2317032.34 77.77°h 0.26 220,000.00 1,415815.00 184746.33 474,046.97 83.98% NET INCOME (LOSS) _ ._ -12,706.02 (110,475.23) 164,111.81 Non income statement budget 7000 TOTAL CAPITAL OUTLAYS 14,864,000.00 595,055.98 706,622.48 14,157,377.52 0.05 2,268,000.00 400.00 r` Ci of Hutchinson Statement of Revenues, Expenditures -Water Sewer Compost Rec clin Refuse 07131/05 _ Annual Current Year To _ __ Bud et Percent Prior Year Prlor Vear To Percent Bud et Month Date Remainln Used Bud et Date Used 407 WASTEWATER _ 4000 REVENUE 8 EXPENSES __ 4250 TOTAL CHARGES-FOR_SERVICES 4450 TOTAL SALES 4700 TOTAL REIMBURSEMENTS 4001 REVENUES _ 0.00 2,890,000.00 2,000.00 2,892,000.00 0.00 2.56,681.05 -140.00 256,541.05 930.00 1,403,971.79 901.03 1,405,802.82 -930.00 1,486,028.27 1,098.97 1,486,197.18 0.00°~ 48.58% 48.61°k 2,502,000.00 0.00 2,502,000.00 1,246,055.53 1,247.00 1,248,852.53 49.80% 49.91°~ _ 6001 EXPENDITURES 6105 TOTAL SALARIES 8 FRINGE BENEFIT 540,078.00 47,165.87 258,376.11 281,701.89 47.84°k 459,902.00 224,847.37 48.89°h 6200 TOTAL SUPPLIES, REPAIRS & MAIN _ 6300 TOTAL CONSULTING 6306 TOTAL OTHER SERVICES 8 CHARGES 6600 TOTAL DEBT SERVICE _6700 TOTAL TRANSFERS OUT 6900 TOTAL MISCELLANEOUS 6905 DEPRECATION 149,000.00 325,000.00 466,850.00 762,772.00 60,000.00 98,000.00 700,000.00 24,259.67 24,038.69 35,458.39 12,598.24 0.00 808.68 82,444.94 113,098.33 708,500.56 256,526.12 88,187.66 0.00 8,992.19 577,114.60 35,901.67 216,499.44 210,323.88 74,584.34 60,000.00 89.007.81 122,885.40 75.90% 33.38% 54.95% 54.18°k 0.00°~ 9.78°h 82.44°~ 187,750.00 349,000.00 444,040.00 209,243.00 57,000.00 23,600.00 700,000.00 140,552.80 101,245.61 264,941.35 105,098.43 0.00 7,733.59 479,928.77 77.33°~ 29.01% 59.67°h 50.23% 0.00°k 32.77°h 68.56°~ _ 6001 EXPENDITURES 2,501,700.00 226,774.48 1,470,795.58 1,090,904.42 2,424,535.00 1,324,347.31 54.62% NET INCOME (LOSS) 29,766.57 (4,992.76 75,494.78 Non income statement bud et 7000 TOTAL CAPITAL OUTLAYS 3 144,283.00 127,819.24 1,172 019.42 1,972 263.58 37.27 2418,500.00 723,860.67 5.12 V` r~ '~ • 16-Aug-OS Institution escription nterest Rate CITY OF HUTCHINSON CERTIFICATES OF DEPOSIT July 31, 2005 Date Date Of Of Purchase Maturity mount US BANK Money Market 1.43% 1113/2004 1111912008 375,000.00 Smith Barney FHLMC med 4.00% 7/30/2004 7/2712012 298,500.00 step up Smith Barney FHLB C 4.05% 117!2004 7/30/2009 300,000.00 Smith Barney FHLB C 4.050% 4/28/2005 4/26/2010 750,000.00 Smith Barney FHLB C 5.010% 4/26/2005 4/26/2010 270,000.00 Wachovia pool 336914 7.226% 12 31 96 02 01 2026 5,547.51 Expected life 6.2 years Smith Barney FHLM -C 4.650% 11/21/2001 5/21/2007 300,375.00 Wachovia pool 336399 7.270% 12 31 96 02 01 2026 4,140.08 Expected life 4.1 years Wachovia FHLB 5.00% 5/22/2003 5/2212013 300,000.00 Wachovia FHLB 4.00% 6/12/2003 6/12/2013 300,000.00 Wachovia FHLB 1.190% 6/26/2003 06/26/13 400,000.00 • 16/2013 200 000 00 Wachovia FHLB 3.000% 7/16/2003 7! . , Wachovia FHLB step 3.000% 219/2005 2!912007 625,000.00 step up Wachovia FHMA 3.000% 8/24/2004 2/25/2008 100,000.00 step up Home State Bank 3.000% 8113!2004 8113/2005 200,000.00 First Minnesota 2.670% 11/16/04 12115/05 400,000.00 First Minnesota 2.380% 08!17104 08/18/05 750,000.00 Wells Fargo 2.390% 09/16/04 09/16/05 750,000.00 First Minnesota 2.580% 11!15104 11/17105 750,000.00 $7,078,562.59 • .5(~~7 Resolution NO. 127818 RESOLUTION AUTHORIZING EXECUTION OF AGREEMENT • • • Be it resolved that Hutchinson Police Services enter into a grant (Name of Yaur Agency) agreement with the Minnesota Department of Public Safety, Office of Traffic Safety for the project entitled SAFE & SOBER COMMUNITIES during the period from October 1, 2005 through September 30, 2006. The Chief of Hutchinson Police Services is hereby authorized to execute such agreements and (Title afLead or Single AgencyAuthorized Official) amendments as aze necessary to implement the project on behalf of the Hutchinson Police Services and to be the fiscal agent and administer the grant. I certify that the above resolution was adopted by the Citv Council (Executive Body) of Hutchinson Minnesota on (Name of Lead or Single Jurisdiction) SIGNED: (Signature) City Auditor/Other Authorized Person (Title) (Date) (Date) WITNESSETH: (Signature) City Clerk/OtherAuthorized Person (Title) (Date] 51~~ I RESOLUTION NO. 12802 CITY OF HUTCHINSON • RESOLUTION FOR PURCHASE The Hutchinson City Council authorizes the purchase of the following: ITEM COST PURPOSE DEPT. BUDGET VENDOR Reed Sledge Peat $34,625.00 Resale Compost Yes Sampson Sod Farm Unleaded Fuel $15,062.12 Resale HATS YES Schmeling Oil Instaqll asphalt $20,356.00 Install in front of hangars Airport Yes MJ Neisen Asphalt Entry Doors $18,671.00 Replacement Event * Crow River Glass Center & Rec Ctr * Capital project money budgeted for tennis courts will be reallocated. The following items were authorized due to an emergency need: ITEM COST PURPOSE ~ DEPT. ~ BUDGET ~ VENDOR Date Approved: Motion Made By: • Seconded By: Resolution submitted for Council action by: 5~~~~ C Memo Oakland Cemetery 1 I1 Hassan Strcel SE Hutchinson, MN 55350 Phone: 320-234-4455 Fax: 320-234-5644 To: Honorable Mayor and City Council From: John Olson, Public Works Supt. Floyd Groehler, Cemetery Supervisor CC: John Rodeberg, Dir. of Public Works Date: August 1, 2005 Re: Proposed Amendments to Oakland Cemetery Rules and Regulations Addendum to §94.36 (L) (3) and (4) "Interment of More Than One Body" • This amendment is necessary because electrical utilities were inadvertently placed within platted cemetery lots along the west side of the cemetery. Some properties in Section l2 and in Schmidt's Addition were re-designed to allow maximum utilization afthe property while the electrical utility stays in place. This amendment also allows Cemetery managemen! latitude to make the best, most appropriate use ojexisting open reclaimed/repurchased property. Amendment to §94.47 (J) "airvr•i coo«S_nr.~y neonrnorvr•t c_ RECREATIONAL VEHICLES" No bicycles or motorized recreational vehicles including but not limited to motorized scooters, motorcycles snowmobiles motorized carts all-terrain vehicles or other similar recreational vehicles shall be admitted to the cemetery except such as may be in attendance at funerals or on business. This amendment is designed to protect the serene, dignifred character of Oakland Cemetery, as a place appropriate to the memory of laved ones. Motorized recreational vehicles can cause severe, and often irreparable, damage to memorials. Historical memorials are most susceptible to damage from recreational vehicles. These vehicles also can cause signifrcant damage to grounds, requiring unnecessary maintenance expenses. The amendmen! continues to allow use ojthese vehicles at funerals. r 1 LJ ~C~J~ 1L1 (41 -Certain reclaimed or repurchased properties throughout the Cemetery may also be Honorable Mayor and City Council Proposed Amendments to Oakland Cemetery Rules and Regulations August 1, 2005 Page 2 • Addendum to §94.45 (G) "Flush Markers" ll In areas designated for interment of cremations, only flush markers are allowed. Only one marker is allowed in each lot, and markers shall not exceed a maximum size of twelve inches by twenty-four inches. (2) Flush markers will not be permitted in which a flower vase is an integral part of the marker. (3) See Section 17 - M for exceptions. Stewardship of the grounds at the cemetery requires reasonable allowances for placement of flowers. Flush markers are designed to be mowed over, so any placement of /lower vases beyond that allowed already in cemetery rules would be a significant impediment to long-term, efficient grounds maintenance, as well being an impediment to accessing other properties, as necessary. Addendum §94.45 (M) "Exceptions" t This amendment is necessary, again because of electrical utilities within platted cemetery lots. Certain properties were re-designed to allow maximum utilization of the property. The electrical utility will remain in place. Allowing upright memorials in these re-designed properties provides an option that marry customers prefer. Recommended Motion: Motion to approve addendums and amendments, as described, to City Cade §94.36, §94.41, and §94.45. U s ~J~ • RESOLUTION NO. 12790 RESOLUTION APPROVING A CONDITIONAL USE PERMIT TO ALLOW MORE THAN 1000 CUBIC YARDS OF FH.L IN THE FLOOD PLAIN LOCATED AT 225 HURON STREET S.E. BE IT RESOLVED BY THE CITY COUNCII. OF THE CITY OF HUTCHINSON, MN: FINDINGS 1. The property owner, is requesting a Conditional Use Permit to place more that 1000 cubic yards of fill onto property located at 225 Huron St. S.E. in order to meet the flood plain requirements of 1040.5 elevation. He proposes to construct a commercial building in the future. The fill on the northern property indicated that 787 yards were added. The southern lot indicates that 742 yards were added. Legal Description: Lots Eight (8) and Nine (9), Block Twenty-One (21) Townsite of{Hutchinson South Half 2. The City Counci] has considered the recommendation of the Planning Commission and the effect of the proposed use 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 the effect of the use on the Comprehensive Plan. • 3. The Council has determined that the proposed use is in harmony with the general purpose and intent of the Zoning Ordinance and the Comprehensive Plan, if the conditions, as outlined below are met. CONCLUSION The City Council hereby approves the Conditional Use Permit with the following conditions: 1. The site should be leveled and graded prior to December 1, 2005. 2. The site should be temporarily seeded to deal with weed issues and erosion in the spring. 3. No more than 200 additional cubic yards can be added to the site, but in no case should the elevation of the site be raised beyond 1040.5 to ensure, the elevations of the neighboring building (to the north) is not impacted. Adopted by the City Council this 23rd day of August, 2005. ATTEST: Gary D. Plotz City Administrator • Steven W. Cook Mayor SC~J l Hutchinson Citv Center DATE: August 17, 2005 TO: Hutchinson City Council 111 xassan street se Hutchinson, MN 55350-2522 320-587-5151JFax 320-234-4240 MEMORANDUM FROM: Hutchinson Planning Commission SUBJECT: CONSIDERATION OF CONDITIONAL USE PERMTT TO ALLOW MORE THAN 1000 CUBIC YARDS OF FILL IN THE FLOOD PLAIN LOCATED AT 225 HURON STREET S.E. Pursuant to Section 154.089 of the City Code, the Hutchinson Planning Commission is hereby submitting its findings of fact and recommendation with respect to the aforementioned request for a conditional use permit. HISTORY The property owner, is requesting a Conditional Use Pemut to place more that ] 000 cubic yards of fill onto property located a[ 225 Huron St. S.E. in order to meet the flood plain requirements of 1040.5 elevation. He proposes to constmct a commercial building in the future. The fill on the northern property indicated that 787 yards were added. The southern lot indicates that 742 yards were added. FINDINGS OF FACT •]. The required application and fee was submitted. 2. Notices were mailed to the surrounding property owners as well as published in the Hutchinson Leader on August 4, 2005. 3. There were no neighboring property owners present at the public hearing objecting to the request. 4. One of the major considerations of a flood plain fill pemlit is the drainage of the site afrer the fill has occurred. RECOMMENDATION The Planning Commission unanunously voted to recommend approval of the conditional use permit with the following conditions: 1. The site should be leveled and graded prior to December 1, 2005. 2. The site should be temporarily seeded to deal with weed issues and erosion in the spring. 3. No more than 200 addifional cubic yazds can be added to the site, but in no case should the elevation of the site be raised beyond 1040.5 to ensure, the elevations of the neighboring building (to the north) is notimpacted. Respectfully submitted, Dean Kirchoff, Chairman Hutchinson Planning Commission cc: Bruce Lickfelt, 718 Shady Ridge Road, Hutchinson Printed on recycled paper - 5 C~~ 1 _,_,_o_____,___,_,__,.,_,_,_,__,_,_,_,_..,_.., ,.._,..o .,_,_,_> ._,_....._ ,_.__,_,..,,,._,__,_,o,_,,,_~ _~__.., DIRECTORS REPORT -PLANNING DEPARTMENT To: Hutchinson Planning Commission • (Persons in attendance a4 Planning Staff Meeting (in bold) From: Brad Emans, Dotf Moon, Dave Hunstad, Miles Seppelt, Erin Eberdt, Jean Ward, John Rodeberg, P.E., John Webster, John Olson, Lenny Rutledge, Kent Exner, Mark Schnobrich, Marc Sebora, Gary Plotz, Ken Merrill, Jim Popp, Dalt Ilattcn, Dick Nagy, Julie Wischuack, AICP, and Bonnie Baumetz Date: August 1 , 2005 -Meeting Date: August 16, 2005 Applicant: Bruce Lickfelt, property owner CONDITIONAL USE PERMIT Brief Description The property owner, is requesting a Conditional Use Permit to place more that 1000 cubic yazds of fill onto property located at 225 Hwon St. S.E. in order to meet the flood plain requirements of 1040.5 elevation. He proposes to construct a commercial building in the futwe. The fill on the , northern property indicated that 787 yards were added. The southern lot indicates that 742 yazds were added. 1.J GENERAL INFORMATION Existing Zoning: UC (Industrial Commercial District) Property Location: 225 Hwon St. SE Lot Size: .2 acres Existing Land Use: Vacant -The house has been removed. Adjacent Land Use And Zoning: UC (Industrial Commercial) Comprehensive Land Use Plan: Industrial Zoning History: The property is in the flood plain and was a residential use. Applicable Regulafions: Section 154.089 of the City Code SPECIAL INFORMATION Transportation: Hwon Street S.E. 5~GJ1 Conditional Use Permit 225 Huron St. S.E. -fill in Flood Plain Planning Commission- August 16 , 2005 Page 2 • Parking: ;vT;A Analysis and Recommendation: This is the city code section pertaining to fill in the flood frinEe: ($) srm~am>3sforltoodh-i~elxrmmid,~s. (i) BII stmctmes, ind~ aaeaory• , mnsi be elevated on fdl so chat the lon~stflooriodadinghacemmtflaais at or ahoszihetegulatrnyfloodp¢otectioaelevation.'The fmi~hed fill elevation for stractmes shaIl be ~ lone 2haa one foot belorvlhe regulatory flood pmts:lion ekvatiw and theffi shall extend at tLatelecatioa at least zsfeetbeyondthe oatside limits of ~e strochae erededtLamn. (z) A55ana1tiernatitiEto~ation4n5ll,acoessacyshvctmcsthat ~aamiodmal it andihat donut exceed 576 sgoarefeet fz4 feetby zq feet) fiorthe airtsvde ~measion at ground level. may be iat®agy Soodpmofed in aaardauce viftL ' a50-otlB(D)(5)(c) of flux code [~ 1'hecamalatnep3ao~euiotfiliwha~eata~oaetimein~cessafimocabdcyarda of tilt is located an the parcel shaIl be albnable only as a camditional use, Mess chat ffi is spedficallymimded9~ elevate a stmciurein aocordancz with dnisioa ($xs} abuse. Since the placement of fill is in excess of 1,000 cubic yards and there are • no definitive plans at this point regazding a potential building there needs to be conditional use permit consideration. There has been approximately 1400 cubic yards placed on the pazcel. Staff prompted the property owner to obtain a CUP when it looked as if there was over 1,000 cubic yards. One of the major considerations of a flood plain fill permit is the drainage of the site after the fill has occurred. There was discussion by Staff of the side yard drainage after the fill is placed. Staff discussed whether there would be a negative impact on the alley, which is located in the rearof the property. After an inspection by Public Works, Engineering and Park staff, it was determined that there should be no impact on the alley area, if the sloping of the property is kept similar to the property to the north which is also flood compliant. Soil types were also mentioned in terms of eventual construction, engineering of the soil for footing inspection purposes is likely. Staff would recommend approval of the request with the following conditions: 1. The site should be leveled and graded prior to December 1, 2005. 2. The site should be temporarily seeded to deal with weed issues and erosion in the spring. 3. No more than 200 additional cubic yards can be added to the site, but in no case should the elevation of the site be raised beyond 1040.5 to ensure, the elevations of the neighboring building (to the north) is not impacted. 5~~~ I N LOTS 8 AND 9. BLOCK 21, TOWNSITE OF HUTCHINSON~ SQI~Thi HALF. T /•"~ I32.00 ~ II ~, 838.0 l a3t,7 ' Medge ~ 6.2 n lJ~ b~ I U, 3 5 P., e ti. p -S .o I ~+-- 2 5 ~ W L.L. 30.5 0 Z~ O `°' ~y o • a T O i .- N I O W 30.9 s. ro b, 00 ~ o ~ ~ ~ ; s I 3, ~ ~ I ~ .eq..m ~ loHi.ru a ~ ~ y I a~i I -- ;. s ~, ~ ~ y.9U ~ 4 o 9 ~ ~ .X Nn I c <..: c \ ~ _ ° q~y 6 °' ~c ~ ~ O '~ ° I I O p ~ ¢~4 J ~,,.,c. ~ ~ ~ ~ ~ a ~ J ~ , t0 a • denor_s p ~~ 3 ,. ~ ; s ~ ~ 4 ~ i ~ 30 7 ~ a35.~ I 9 o deno~'gs (Q .30.0 a 37.0 ti' • 36.3 ° o . . d ~ a ' '~ v ~ .-- T n ~ d ` LOT 9 ~ 6 ~ ~ I a 37.z din a ~~ rip o' I tod a- ~ 1~ I 6ENCH MARK oY .~ t o ~o38.r -~ I '°~ 2 ~ o~ s,io , 3. 30 ~ . ,. II I .28. 039.00 ,36.0 a37.S Q,Sa. - ~l0 36'O ~'., I a35.$ ~--- 3l. ~ ,~ I co ,} ~ ~ I Top m ~. r . ~ I O .~ .' ' I I ElevOtioi a 38A 77.2 - ~ } cu 38:5 - -~ ~- I 1/J I Top nur 15 8.5 L ~, '- Eievaria '`'"'o o-~l rn L ~T ~~ ~ 8 F~ J I I H O E .224 N . ~D~ ~ Q ~ M f A O I a36 7.9 ~ O ~ I I h2f ~ 26.4 - .2 7 a ~ ~ 12 ~ 7 ~ ~ by ~rv .30.3 37. s ", 0 ~ I ~ .. ~ $H d ~ S I nc~ 'I''~5 d > "~ J I a ~ - I ~ -~ ~ I ~, ao O ~ ,2 I o3`1'j0 90 x37.3 37.8a I ~~ P EL~N LANO SURV EYING ~ ~ I ~ Llo e •36.2 y.9~ X031.4 `.'.,36.2a I I r.35.~SI--^- 132.00 '•"° 1 !~ AV CfWtE '~~_o I MN. J0~0. 933579 BOOK P153 P,A/GE 23 ~ `7.C~ H7~C./ (n1/. ~. _.~ ICcrra,~ r~ad,l ~~a+~~,:~~ ra~~zrr ~r ti~~.°r.~ ^Y ~~ _~rl~ r~~ x ~ ~ _ ~= w a ti c;+'. ~,.` } ~~'t RESOLUTION NO. 12791 RESOLUTION APPROVING A LOT SPLIT (.67 ACRES) REQUESTED BY HUTCHINSON COOP LOCATED AT 1060 5TH AVE. S.E • FINDINGS CONCLUSION L Hutchinson Co-op, property owner, is requesting a lot split at their site located on Sc' Avenue Southeast. The .67 acres to be split from the property is proposed to be sold to Hutch Iron and Metal for placement of a storage building to be moved from another lot in the City. That moving permit will require a separate Conditional Use Pemut. Legal Description: That part of Lot 14 of the Auditors Plat of the West Half of Section 5, Township 116 North, Range 29 West, described as follows: Commencing at the intersection of the northerly line of the former Railroad right of way and the east line of said West half of Section 5; thence northerly, along said east line a distance of 410.42 feet to the center line ofArch street; thence northwesterly, deflecting to the left 64 degrees 15 minutes 37 seconds, along said center line, a distance of 379.20 feet; thence westerly 273.65 feet along aid centerline, along a tangential curve concave to the south, having a radius of 645.97 feet and a central angle of 24 degrees 16 minutes 20 seconds; thence westerly, tangent to said curve, a distance of 26.11 feet to the center line ofthe raikoad spur line; thence southerly and southeasterly, along said center line to the intersection with a line parallel with said east line of the West Half of Section 5 and distant 465.75 feet west of, as measured perpendicular to, said east line of the West Half of Section 5 and [he point of beginning of the land to be described; thence continuing southeasterly, along said center line of the railroad spur line, ro the intersection with said northerly line of the former Railroad right of way; thence westerly, along said northerly line of the former Railroad right of way 350.06 feet to the intersection with a line parallel with said east line of the West Half of Section 5 as measured from the point of beginning; thence northerly, along said parallel line 195.81 feet to the point of beginning 2. The City Council has considered the recommendation of the Planning Commission and the effect ofthe proposeduse on the health, safety, and welfaze of the occupants of the surrounding lands, existing and anticipated traffic conditions, and the effect on values of properties in the surrounding area and the effect of the use on the Comprehensive Plan. 3. The Council has determined that the proposed use is in harmony with the general purpose and intent of the Zoning Ordinance and the Comprehensive Plan, if the conditions, as outlined below are met. The City Council hereby approves the lot split with the following conditions: $F iT RFSGT VED BV T$F CTTV GQT ~NCIT OF THE CTTV QF HUTCHTNCOIQ~ 1yfjQ; The parcel that would be split, must be tax combined with the parcel owned by Hutchinson Iron and Metal after the transfer occurs. The property owners are responsible for recording of all documents regazding the transfer. If for some reason, the property is not transferred to the adjoining property owner, the parcel would be considered unbuildable. C~ Adopted by the City Council this 23rd day of August, 2005 ATTEST: Gary D. Plotz City Administrator Steven W. Cook Mayor 5 ~~~ ~ Hutchinson City Center • DATE: August 17, 2005 Ill Hassan Street SE Hutchinson, MN 55350.2522 320-587-5151/Fax 320-2344200 MEMORANDUM TO: Hutchinson City Council FROM: Hutchinson Planning Commission SUBJECT: CONSIDERATION OF LOT SPLIT LOCATED (.67 ACRES) REQUESTED BY HUTCHINSON COOP LOCATED AT 1060 5t" AVE. S.E Pursuant to Section 153.05, of the Hutchinson Municipal Code, the Hutchinson Planning Commission is hereby submitting its fmdings of fact and recommendation with respect to the aforementioned request for a lot split. HISTORY Hutchinson Co-op, property owner, is requesting a lot split at their site located on 5`~ Avenue Southeast. The .67 acres to be split from the property is proposed to be sold to Hutch Iron and Metal for placement of a storage building to be moved from another lot in the City. That moving permit will require a sepazate Conditional Use Pemrit. FINDINGS OF FACT 1. The required application was submitted and the appropriate fee paid. . 2. The pazcel is located in the I-2 zoning district. 3. The property is located within the I2 Zoning District which requires 250 of width x 400 feet of depth and a 3 acre minimum. The proposed split would only create .67 acres of property. This would require the pazcel to be tax combined with the property to the north, owned by Hutchinson Iron and Metal. 4. The area is also under consideration for a new road extension to property that is owned by the EDA There are no definitive plans for the road construction a[ this date, however, it is important to indicate to the property owner that the remaining parcel on the east side of the road would not be a lot that would meet the minimum acreage or dimensional requirements for the I2 District. Thus, the lot would have to remain in tact with the Cenex property or be transferred and combined with the adjoining acreage. RECOMMENDATION The Planning Commission voted unanimously to recommend approval of the lot split with the following recommendations: 1. The parcel that would be split, must be tax combined with the pazcel owned by Hutchinson Iron and Metal after the transfer occurs. 2. The property owners are responsible for recording of all documents regazding the transfer. 3. If for some reason, the property is not transferred to the adjoining property owner, the parcel would be considered unbuildable. Respectfully submitted, Dean Kirchoff, Chairman Hutchinson Planning Commission • Cc : Hutchinson Co-op, 1060 5t° Ave SE Hutchinson Iron and Metal, 1130 5t° Ave SE Dan Prochnow, 126 Franklin St. Ste. ] 00 Primed on recycled paper - 5<<Ja UIRt~a"TORS RLPOR"l~ -PLAY\ING lll~>V:~R('1`II?v7~ in kluichlnson Plannina(bmmission (Yersnns in attendance at Planning Slafl' Aleetink (in hold) 1 ~oiti: Brad Emans, 1)alf ~looai, [)ace Hanstad. Miles Seppelt. h:rin li;becdt. Jean 4~~ard, Ju:ui Kodc~nci~g, f'. E.. Jahn 1~ebsrer, Joan Oisan, l,ennt Kut3edgc, 4ient F:xt:c=r. ;~1ark Schrobrich, \'s;c Sch>ra. Gary "loEr, Ket. ~4ert~il). Jim Popp. [3a~i llaiten, Disk \a~p, Julie ~l'iscltnack, AICP, and $onuie BaumeJz f)atc: August 1.2005 - iVleetin~ Date: august 1C~, 2005 \pplicant: Hutehinsun Coup, ~'raperty owner 1,(1'1' fik'1.J7' Ilt~ief llescription Tlt~idnnson fb-op, hropcrty owner, is requcsiin~? a kat split al their site k>cated on >~' Avenue Soa~tl~e:~st. the .67 .acres U~ br split li~(~m the propcm is propesecf to f,e sold to F{utc;h Iran and Metal f«r placement of at slarage- budding to be naavcd from :another lot m Ehe (Sty. That mavtng e 3'ernut. The applScation Cor the Conditional lase tri 12ecn received by 3lutch Iron anal ~leta!_ cr;~r.IZAt. I~roa~iA~~•to~ Existing Zoning: 3-2 (tfeavy ]ndusirial) Property Location. 70G0 Si° Ave S~ Lot Sire: Tlae lot split parcel will be .ti7 acres Existing land tise: h~dusu~ial Adjacent (.and l'~se Anal Zoning: 1-2 (Heave Industrial) and (-i (Light ]ndustrial} Comprehensive land ['se flan: Irtdusvial Zoning History: 'I`he parcel as proposed to be sold to {-latch lron and ~Jrtal. rAphlicahle 12egnfatians: Section 173.05, ?lutchi;lson liunicipal Cade 5<<~~ i • • Lot Split Hutchinson Co-op -1060 5th Ave SE Planning Commission- August 16, 2005 Page 2 SPECIAL Il+IFOIL'1SATIOI~ Transportation: 5`h Ave SE Parking: N/A Analysis and Recommendation: The property is located within the I2 Zoning District which requires 250 of width x 400 feet of depth and a 3 acre minimum. The proposed split would only create .67 acres of property. This would require the parcel to be tax combined with the property to the north, owned by Hutchinson Iron and Metal. The area is also under consideration for a new road extension to property that is owned by the EDA. (See attached map). The pazcel division is indicated on the map, in relation to the possible road alignment. There are no definitive plans for the road construction at this date, however, it is important to indicate to the property owner that the remaining parcel on the east side of the road would not be a lot that would meet the minimum acreage or dimensional requirements for the I2 District. Thus, the lot would have to remain in tact with the Cenex property or be transferred and combined with the adjoining acreage. Staff would recommend the following conditions with the lot split: The parcel that would be split, must be tax combined with the pazce] owned by Hutchinson Iron and Metal after the transfer occurs. 2. The property owners aze responsible for recording of all documents regarding the transfer. 3. If for some reason, the property is not transferred to the adjoining property owner, the parcel would be considered unbuildable. Cc: Hutchinson Co-op, 7060 5~ Ave SE Hutchinson Iron and Metal, 1130 5'" Ave SE Dan Prochaow, 126 Franklin St. Ste. 100 5 ~cJ a. • . CERTIFICATE OF SURVEY FOR HUTCHINSON IRON 8 METAL, INC. "- ;,',~„,n; DESCRIPTION ~ i ` ~ I ~ "\ Thol part of Lot 14 of she Auditors Plat of IM West Half of 6ectlen 5, 1 ~ \ Tormhip IIB Nerih. Range 29 Waal desuihetl as tailors: ~ _ °'T~ ._ ~ I Commencing al IM Intena<tlon g1 sM nonMtly Iina of the former R<i4osd rlgb of way and the eDAI Ilns of sold West Haif of Sectien 5: thence nersherty along said vacs Ilne, o dlaerKS of 410.42 fees ro the eentar Iina of NM 61raaE thanes nonhwesHrly, da6eetihq to Iha left 64 degrees IS minutes 37 sKOnds, along sold canter line, a dlswnce of 378.20 feet; thence waauliy 273.65 lees olgnq sob celnerllne, clang a tongensi0l curve <oncwe to the seDlh, having o wdim of 645.97 feel and a <enrcol alpla of 24 degrees I6 minutes 20 s¢onds: thence waLerly, langam to sold curve, a distance of 26.11 lael to IM center Iina of IM raltaad spar Ilns: thence southerly and southeasterly, alolp saltl tamer Ilm to the Imenealon with a Ilne parallel with said wet Iina et the West Halt of Sectlan 3 and dlsmm 466.75 teat rest af, as mwswnd peryandlculgr lo. sold east Iina of the Wasl Holt al Section 5 gM the point of Eeginnlnq of the land to he descrlDed: Ihenca conlinulltq soulhaasterly, along sold canter Ilne at she ralYagd spur Iina, le the Inlersenlon wish sold northerly line o} Iha former Railroad light of wcY tMnca westerly, along sold northerly Iina of the former Railrood rlgM of ray 330.06 fee to IM Inlerseelion rifh a Ilne Daralltl rlth aald eml Ilne of the Wsst Half of S•dian 5 4s meamrad hom the Deint of Eaglhnlnp: IMnee northerly, clonq said parallel line 193.81 teat to the point of Osglnninq. \ --,. ~-., roe "'>-~d ., \ -_1 \" .\ -\ RF~FN~o N ~%a`HZ 2 ~~~5 fin(°yP rG'yd6n ?6B. ~ O 50 100 200 ~ \<a~ \ ` \OH\ \TRFfj \ • o•noso von maeum•m mono SECTION 5, T,I 16 N., R.29 W. I\ o q.nel.,Rpnm<nwnen,,,l LOT 14 ?w f 9, ;! ~d - £(£j O i~ Yt r ~ Aj2EA 0.67 Acres _iy a65.75 „„°R e sovo~m• _d] i w2~ - CUlllr Ixal Inlr Jurvq, plan a I IIV•O 9 Ee + laeoen • pr •per •a er 1 unaer mr e1r..I s M ~ s._ e alt nc•ns•a r•.vl. i.a ana reel 1 e m ° levs al m• slal• al .e aeyer uaav rn• ui.. I d ~f.+ a ~§~ . //// WY~'e /~/f 2ar~ ~ AT49'42' 9 y R ReYStn 13 R-672.96 L•78.28 I c°'^ `i- ur. xe.1Y.i79 ~l,r~_ -~ " \I nwreNr A"•el Iwna IlalYeoe R/i'-~ v "~~~- ~ 330.06 .~ 115.77 seam ens el m• Nw ve es 3•clbn S, T,I Ib M., R39 W.? ~'~- -_ -- - C•ntvlpx at krm•r R Yeas R/Y J ~ _ j! FORMER RAILROAD RIGHT OF WAY ~ ^ W L0 coma __ _____'________________-~ " c I.4 aor ., of 9wtlen S 01 3•Cibn 5 \ \ I 5 I>9 corner o/ becnon 5 f 1/ _____ (eaei FIFTH AVENUE SE n -- ~ L.z7a16aes~ - - - - - ----X I-"~- _ ------- PROPOSED INDUSTRIAL ROAD THROUGH E%ISTING CENE% PROPERTIES 'Uil:-iC 'IE „F ~~ I r sry~~ \ r C~ I I s> J r "~ J I ,," ~~ I ;: ,_ III T d. ~ I I ~, .5 i r-IS ~ 1 l I ., r «,.~ ., ,~ rI p~' I ,. 1 i r I:I ~:~~ ~t Fs 1. 4f ~ m. _ q~ %~ La,. F ~ _ .~1j~ i ., ---- J - - >- r I - ~- -- .- ---- I . ... ~.. . ~ ,; ,__ ..n. _._ _i- I 1 b,n.a ___ I ---` I ~- _. (il Ji~ _f~i I A 1: Jf':..-,~1. r.... VIII RI- ~I:'.~[\ ~ lt:e '.r. I.... w. I ' o: rSi OJIIrU' iG I 1 CFIIN C J J,Tq+I I~'"T~21 7 I ', I/ ~ i x i_ICY. 1 I I i Y ~~~ ~ ~ ~ ~ ~ ~ ~ 1: ~ ~ ~ ~ lJ r - - _ _ [ 7 ~ f 9 L 'lf I! L-H YAT __ I + l• y. 141 ~- mac- -._. - "'_ ~ ... n. 1 ; e,n, ~ _____ . ,. _, I I I f . _ .- _-_ _ I r V--.. .... ~ ... _ l-~=~ I I r1Y ~ .... I _ ~~~e I "~ ~`~~ el ~~ ~ I ~~ I ~, PPW[[i IDCAiION: CCHEY PAOPCAil6 ~- _` `d /G~DJ C I° PAOJ. N0. 05-IA t[IIIMC wo. 514[J 1 or 1 n/~J, I RESOLUTION NO. 12792 RESOLUTION APPROVING THE EXTENSION OF A CONDITIONAL USE PERMIT REQUESTED BY MARVIN WII.LHITE, 465 HIGH STREET N.E. FOR CONSTRUCTION OF SECOND DETACHED GARAGE OVER 1000 SQ. FT. • BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MN: FINDINGS L Mr. Willhite is requesting an extension of his Conditional Use Permit to construct a garage over 1000 sq. ft. which will be the second detached garage on his property. The original Conditional Use Permit was granted on March 22, 2005 and he would like it extended to July 30, 2006. He stated he is having a difficult time finding someone to move The present garage and that it may take time for him to get the garage moved and the new one built. LEGAL DESCRIPTION: The southwesterly 60.00 feet of the following described pazcel of land, as measured along the northwesterly line thereof: Beginning at the most northerly comer of Block 16 in the Townsite ofHutchinson, North Half, according to the plat thereof on file and of record in the office of the County Recorder, McLeod County, Minnesota; thence southwesterly along the northwesterly line of said Block 16, a distance of 266.20 feet; thence southeasterly, pazalle] with the northwesterly line of said Block 16, to the west right-of--way line of the Minnesota Western Railway Company; thence northerly, along said west right-of--way line, to said northeasterly line of Block 16; thence northwesterly, along said northeasterly line, to the place of beginning. 2. The City Council has considered the recommendation ofthe Planning Commission and the effect ofthe proposed use 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 the effect of the use on the Comprehensive Plan. • 3. The Council has determined that the proposed use is in harmony with the general purpose and intent of the Zoning Ordinance and the Comprehensive Plan, ~f the conditions, as outlined below are met. CONCLUSION The City Council hereby approves the conditional use permit and variance based on the hardship of pazking shortage with the following conditions: I. Elevation drawings of the building are required. 2. The existing building and new building must meet fire safety codes (see recent inspection information from Fire). 3. Document proposed grades after structure is constructed. 4. Remove existing 24' X 20' detached garage prior to final inspection of the new structure. 5. Removal or relocation of services are at owner's expense. 6. A home occupation is not allowed exclusively in accessory building. 7. The garage must not exceed 16' in height. 8. The building may not be pole constructed. Adopted by the City Council this 23rd day of August, 2005. ATTEST: Gary D. Plotz City Administrator Steven W. Cook Mayor ~ C~\ 2 C • DATE: TO: FROM: SUBJECT: Hutchinson City Center 111 Hassan Street SE Hutchinson, MN 55350.2522 320-587-5151lFax 320-236-4240 MEMORANDUM August 17, 2005 Hutchinson City Council Hutchinson Planning Commission CONSIDERATION OF EXTENSION OF CONDITIONAL USE PERMIT REQUESTED BY MARVIN W ILLHITE, 465 HIGH STREET N.E. FOR CONSTRUCTION OF SECOND DETACHED GARAGE OVER 1000 SQ. FT. APPROVED BY THE CITY COUNCIL ON MARCH 22, 2005 Pursuant to Section 154.026(c) of the Hutchinson Municipal Code, the Hutchinson Planning Commission is hereby submitting its findings of fact and recommendation with respect to the aforementioned request to extend a conditional use permit HISTORY Mr. Willhite is requesting an extension of his Conditional Use Permit to construct a gazage over 1000 sq. R. which will be the second detached gazage on his property. The original Conditional Use Permit was granted on March 22, 2005 and he would like it extended to July 30, 2006. He stated he is having a difficult time finding someone to move the present garage and that it may take time for him to get the ~azage moved and the new one built. FINDINGS OF FACT The request was approved by the City Council on Mazch 22, 2005. RECOMMENDATION The Planning Commission voted unanimously to recommend approval of extending the conditional use permit with the following conditions: 1. Elevation drawings of the building are required. 2. The existing building and new building must meet fire safety codes (see recent inspecion information from Fire). 3. Document proposed grades after structure is constructed. 4. Remove existing 24' X 20' detached gazage prior to final inspection of the new structure. 5. Removal or relocation of services aze at owner's expense. 6. A home occupation is not allowed exclusively in accessory building. 7. The garage must not exceed 16' in height. 8. The building tnay not be pole constructed. Respectfully submitted, •cc: Marvin Willhite, 465 High St. N.E. Dean Kirchoff, Chairman Hutchinson Planning Commission Printed on recycled paper - SCc~ j DIRECTORS REPORT -PLANNING DEPARTMENT To: Hutchinson Planning Commission • (Persons in attendance at Planning Staff Meeting (in bold) From: Brad Emans, Dolf Moon, Dave Hunstad, Miles Seppelt, Erin Eberdt, Jean Ward, John Rodeberg, P.E., John Webster, John Olson, Lenny Rutledge, Kent Exner, Mark Schnobrich, Marc Sebora, Gary Plotz, Ken Merrill, Jiru Pupp, Dau Hatleu, Dick Nagy, Julle Wlschnack, AICP, and Bonnie Baumetz Date: August 1, 2005 -Meeting Date: August 16, 2005 Applicant: Marvin Willhite - 465 High St. N.E. CONDITIONAL USE PERMIT AND VARIANCE Brief Description: Mr. Willhite is requesting an extension of his Conditional Use Permit to construct a garage over 1000 sq. ft. which will be the second detached garage on his property. The original Conditional Use Permit was granted on March 22, 2005 and he would like it extended to July 30, 2006. He stated he is having a difficult time finding someone to move the present garage and that it may take time for him to get the gaaage moved and the new one built. • GENERAL INFORMATION Existing Zoning: R3 (Medium-High Density) Property Location: 465 High St. N.E. Lot Size: 60' X 250' Existing Land Use: Multiple Family Residential Adjacent Land Use And Zoning: C4 (Fringe Commercial), R2 (Medium Density Residential) and R3 Comprehensive Land Use Plan: Traditional Residential Neighborhood Zoning History: NA Applicable Regulations: Section 154.026 (c) and Section 154.167 ,Hutchinson Municipal Code SPECIAL INFORMATION • Transportation: High Street NE Parking: 1 space per bedroom and .5 space per unit for visitors 5 ~-.~3 Conditioual Use Permit Marvin Willhite -Extension of Conditional Use Permit Planning Commission- August 16, 2005 Page 2 C~ Analysis and Recommendation: The consensus of the Planning Staff is to recommend approval of extending the Conditional Use Permit. The drainage is poor in the area and the existing structures are dilapidated. Staff would recommend approval of extending the Conditional iise Perm;t w;th th? following recommendations: 1. Elevation drawings of the building are required. 2. The existing building and new building must meet fire safety codes (see recent inspection information from Fire). 3. Document proposed grades after structure is constructed. 4. Remove existing-two detached garages prior to final inspection of the new structure. 5. Removal or relocation of services are at owner's expense. 6. A home occupation is not allowed exclusively in accessory building. 7. The garage must not exceed 16' in height. 8. The building may not be pole constructed. • • Cc: Marvin Willhite, 465 High St. N.E. 5~~~ n u July 28, 2005 I hereby request an extension to July 30, 2006 on the conditional use permit to construct a garage over 1,000 sq. feet. on my property at 465 High St. NE. ?'~ ~~ Marvin Willhite 465 High St. NE Hutchinson, MN 55350 ~~ ~ G` C~ y~S ~~ • ~~'~ ~~°P~ ~ ~ ~, , ~ >O 951 /~ ~ Bench Nark: Spike in Power pole approx BS teat ~ southwest of Sw Prop. corner +ya9 >° pe. Elevation ~ 10)5.19 tr ~ +>~' D •> °~. / <>~ r1 ^e°r .>z.> Osnates existing elevation ~% ~ ~'>~>.f' b-`> •~~<.> 1>9.z1 Oenocea propo9ed ~ievetion O' \ R +J 6 P> JO (ni31 or~?r> ~ OgoiOO a <>o~r r / < . ' ` >r> >s ~F it JO •>°;>+ cr 9JG / / °a L ese~ ~~ >n ~°a~ ~~ •>o.> sk ~'= e>aO r> ~ ~ 3 °>h>> ~> ~ ~y rc r+9 Aua a>9o a ei VJ ~ ><> /9 ~'9 ry 9 ~o °> xo ~On •>pe O/. THE SOUTHWESTERLY 60.00 FEET OF THE FOLLOWING DEBCRIB¢D PARCEL OF ~ ~. LAND, AS MEAEURED ALONG THE NORTHWESTERLY LINE THEREOF: ~fi BEGINNING AT THE MOST NORTHERLY CORNER OF BLOCK 16 IN THE ° ~a° NWN6ITE OF NUTCHINSON, NORTH HALF, ACCOPDING TO. THE PLAT o'O>o w THEREOF ON PILE ANO OF RECORD ZN THE OFFICE OP THE COUNTY °6>s - O RECORDER, MCLE00 COUNTY, NINNE60TA; THENCE SOUTHWESTERLY O ALONG TXE NORTHWESTERLY LINE OF SAID BLOCK 16; A DISTANCE OF p 366.30 PBET; THENCE SOUTHEASTERLY, PARALLEL WITH THE NORTH- WESTERLY-LINE OF SAID ELOCK 16, 1t1 THE WEST RIGHT OP WAY LIN¢ _ OP THE MINNESOTA WEETERN RAILWAY CO.YPAHY; THENCE NORTHERLY, •rJ ALONG SAID WEST RIGHT OF WAY LINE, TO SXID NORTHEASTERLY LINE OF BLOCX 161 THENCE NORTHWESTERLY, ALONG SAID NORTHEASTERLY '°°~6 LINE, 10 THE PLACE OF BEGINNING. CERTIFICATE OF SURVEY for Marvin W~ hi to I bneF roriry roar rM9 +urwri Olen or open vas DrrF9nd ey mr' ar und+r my din<r npr $cW ~• 3Q' Book HTPO 25 I-IOnsen Thorp Pelllnen Olson Inc. vi+ian 9M root I m a duly Lkrnnd land Smwyor vndrr Ine 19v+ of Ine BmP el M:nnume' LaM Sunpen~COn+dfne Env lnwrr Sn Fl°nnrn W~°'~n-+-p-1"-~- Dora seor. 5 X9&5 File No. 3~ Page 21 HUTCHINSON,MN. Tel. 587-4789 WHlerd P911:nrn Lk°n+° M9. 9626 r~ '\`n V- °r f' ~Y `~ `~ ' ~' ^ rii~ .. ___ ~ ~ C 1 ~ ~'~ T r , Y ~'~ i a~ . 1 .',~ i ,,~( ~i ~ t ~ ' i ~ j ~ 11 1 ~, Y 4 ~ ~ " ~ 'Zj - ~ 8 ~ ~, .,.n ~~ • RESOLUTION NO. 12793 RESOLUTION APPROVING A ONE LOT FINAL PLAT TO BE KNOWN AS CORNERSTONE COMMONS SUBMITTED BY CHRISTIAN OCHSENDORF FOR DEVELOPMENT OF A MIXED USE RETAIL PROJECT LOCATED AT 104 MAIN STREET NORTH BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MN: FIlVDINGS 1. The applicant has submitted an application for a one lot final plat toconstruct atwo-story retail building on the comer of First Ave. NW and Main Street .The Preliminary plat was approved June 28, 2005. Legal Description: Lot 5 and the South 9.00 feet of Lot 4, Block 42, North Half of Hutchinson, according to the recorded plat thereof And That part of Lot 4, Block 42, North Half of Hutchinson ,according to the recorded plat thereof, described as follows: Beginning at the intersection of the east line of said Lot 4 with the north line of the South 9.00 feet of said Lot 4; thence northerly along said east line 55.20 feet; thence westerly, to a point on the west line of said Lot 4 distant 55.60 feet north of said north line of the South 9.00 feet of said Lot 4; thence southerly, along said • west line 55.60 feet to said north line of the South 9.00 feet of Lot 4; thence easterly, along said north line to the point of beginning. 2. The City Council has considered the recommendation of the Planning Commission and the effect ofthe proposed use on the health, safety, and welfaze of the occupants ofthe surrounding lands, existing and anticipated traffic conditions, and the effect on values of properties in the surrounding area and the effect of the use on the Comprehensive Plan. 3. The Council has determined that the proposed use is in harmony with the general purpose and intent of the Zoning Ordinance and the Comprehensive Plan, if the conditions, as outlined below are met. CONCLUSION The City Council hereby approves the Final Plat with following conditions: 1. All demolition and contamination removal on the site will comply with state standards. A separate demolition permit is required for the buildings. 2. Any work within the right of way will require MNDOT approvals. The permits must be copied to the City. 3. Any placement of dumpsters or equipment in the right of way should be cleared by the Public Works Department. 4. Any damage to the street or repairs to the area that are caused by this construction, will be the owner's responsibility. 5. The sewer and water service locations must be installed as described in the re ort 6. p . Any relocation of utilities are at the owner's expense. 7. Pavement alteration (removal of parking spaces on ls` Avenue) are the owner's responsibility. 8. At the time of certificate of occupancy for the building an elevation certificate must be completed and provided to the City. 9. The City must change the designation for the direction of the alley. (Sign and striping for these changes are the owner's responsibility). ~C~ Resolution No. 12793 Final Plat -Cornerstone Commons August 23, 2005 Page 2 • 10. It is contemplated that the property owner would work with other property owners in the area to petit.on a:..mprovemert to'dre alley area. 11. Drainage for the building will connect the roof drains into the alley storm sewer. (Spec: Minimum of 8 inch PVC SDR35) 12. Signage behind the building must be designated employee/tenant parking, 13. Provide specification for median in drive-though prior to obtaining a building permit. 14. Garbage dumpster should be located next to the transformer across the alley pending City Council approval of the franchise agreement. 15. A second handicapped parking stall should be located on 1 ~` Ave. 16. Stripping of the parking on 1~` Ave. will be the responsibility of the developer. Adopted by the City Council this 23'' day of August, 2005 ATTEST: Gary D. Plotz City Administrator • n \J Steven W. Cook Mayor S~cJ ~ C Hutchinson City Center 111 Hassan Sheet SE Hutchinson. MN 55350.2522 32n.cg~_slcl!Fac 324-2_z4-42Q^ MEMORANDUM DATE: August 17, 2005 TO: Hutchinson City Council FROM: Hutchinson Planning Commission SUBJECT: CONSIDERATION OF A 1 LOT FINAL PLAT TO BE KNOWN AS CORNERSTONE COMMONS SUBMI'I'FED BY CHRISTIAN OCHSENDORF FOR DEVELOPMENT OF A MDCED USE RETAIL PROJECT LOCATED AT 104 MAIN STREET NORTH Pursuant to Section 153.50 of the Hutchinson Municipal Code the Hutchinson Planning Commission is hereby submitting its findings of fact and recommendation with respect to the aforementioned request for a Final plat. HISTORY The applicant has submitted an application for a one lot final plat to construct atwo-story retail building on the corner of First Ave. NW and Main Street .The Preliminary plat was approved June 28, 2005. FINDINGS OF FACT ~1 . The developer has requested a slight change to the parking area. The proposed change discusses a gazbage dumpster being located in the city parking lotto the west in exchange for the handicapped stalls to be placed next to the building. The City Council would need to issue a franchise for that use. 2. Plat Layout:The plat would be combining various lots owned by different property owners. The plat will also accommodate a lot line change to address an encroachment of the building over the property line onto the vacant property. 3. Utility Issues: The sewer and water line services aze still under review. It is contemplated that sewer would be served off of State Highway I S per televising information provided to the applicant. (The minimum size for a service for a building of this use needs to be 6 inches.) The water service would be located off of ls` Avenue NW. Any other services that aze not capped in the process of the development aze the property owner's responsibility and the City will not repair these services. However, when Main Street is reconstructed, there may be an escrow required to cap the services. Any other relocation of utility lines would be at the owner's expense. 4. Demolition: Because the City ofHutcllinson previously had investigated developing the property; the City had received soil test information that indicated some contamination of the soil below the surface of the property. The property owners are awaze of this situation and required by state law to comply with proper remediation of contamination if exposed during construction. 5. Site Plan:The conditional use permit is torequest adrive-through in the reaz ofthe property ofI'ofthe alley. The drive- through would prompt the City to change the orentation of the alley to be south bound instead of the way it is presently (north bound). The City Code requires that there is a minimum of 80 feet of stacking area. This is met by the plan. There needs to be signage in the reaz of the building indicating this is ]ow turnover pazking (i.e. tenanUemployee parking). There has been discussion regarding the relationship to the City parking lot to the west of the drive through. At this time, no changes aze proposed to the City pazking lot. The applicant must submit a specification for the median for the drive though. There would also be removal of 2 pazking spaces on ] s` Avenue NW as to accommodate proper ^ lines of site for cars exiting onto the street. ~. Flood Plain One of the challenges with the site is that the area needs to be raised above the 100 yeaz flood plain. The area was already impacting the flood plain and therefore, no remediation of the flood plain storage is necessary. However, the lowest floor ofthe structure must be constructed one foot above the 100 yeaz flood plain. The elevation is at 1043.26; therefore the building needs to be at 1044.26. The proposed elevation is at 1044.5. 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HM N IM .Xrr. .1 rM Cwnn N.mGV N rapN .n IN. _ 0.I ar _~___~ 9tlD. « ___ _ Y. Y Omuri.x IN. _ . Cww awl.. Y6YN [.uy. ltwwwl. MOMP M S NOTE, t_ENER°i EROSION CONTRq NO7 ~• i. Dana ~mvrer amor. mn.y q~co u m. iu'uaa aum a me vwn rtoao auu ~rvuw..n.,,. .eeo...,,,....... ,,,..... ,,. rune ro uuwn w+o asnaew :comma • • ELEVATION STUDY E SOUTH C~ HUTCHINSON MIXED USE DEVELOPMENT o a 'b [~ Mohe9en Tr Hensan ,[,rnaxro,d y M c~.,n ~Y~ HUTCHINSON, MINNESOTA MAY 4, 2005 NORTHLAND INVESTMENT PROPERTIES MARCUS CONSTRUCTION <:OMPANY, ING V' r~ nlf [ad Ygid~ 6M PI 9A1,1}I%5 as. mo n, ,ssa~.i.w V !" ELEVATION STUDY E - EAST ~~ o~a«r ~so9o setae H;sn...y < Hector, MN 55342 (320) 583-0439 Cornerstone Commons August 9, zoos itECENED Mrs. Iulie Wischnac]c pUG 9 20U5 Director of Planning/Z,oning/13uilding ~ City of Hutchit>,wn Gay of u P i b 8- 111 Hassan Streit Southeast pept Hutchinso~MN 55360 Honorable Mayor and City Council: I am writing to request that Cornerstone Commons either trade or purchase two pazking spaces from the City ofHutchinson. We would like to trade two of our pazking spaces that would be located in our parking lot, on the west side of our building with two spaces from the municipal lot on the west side of the alley. This would allow us to put two handicap accessible pazking spaces on our property and to build a small structure that would totally enclose our garbage dumpsters away from ' one of our main entrances. We are proposing that we will give the city two handicap accessible parking spaces . from our parking lot, for the two handicap accessible parking spaces from the municipal parking lot. This will be a benefit to the city in a couple of ways. The first is that it will allow for handicapped pazking on the east side ofthe alley, which will allow users of those spaces to at:cess all the businesses on Main Street without having to deal with the hassle of crossing the alley. The second is that it would allow for better visibility for drivers coming down the alley, leaving the parking lot, and for people using the drive-thru. The building will not be hindering the view of the drivers giving them more time to see any obstacles that might be in there way. The third is that the sanitation department will not be blocking the alley or entrance to any of the business that use the parking lot or the alley. We plan on using the two spaces to build a totally enclosed garbage dumpster azea. We will mach our building's design and material for this structure, and will put a walk-in side door and a metal overhead front door. This will give easy access to both the building tenants and to the sanitation department to load and unload the dumpsters. Educrnion is the key to success! ... ... . .. . .. . .. . . . . .. .. . ... . SC~~y August 9, 2005 Page 2 We aze making this request for a couple of reasons. We first hied to buy a portion of Dr. Kuehl's pazking lot and metal building, but he was not interested in selling it • to us, the second is we will be using the West entrance of our building for many of our patrons, and we would rather not have to make them walk past a dumpster to get into the building, and the third is that it will keep the azea safer for everyone that will be using the downtown area. We would also be willing to buying the two pazking spaces from the city, or we aze open to any ideas that the city might have to make this new addition to the downtown azea the best that it can be for everyone involved. Any help you can provide to expedite our construction getting underway as soon as possible will be greatly appreciated. Sincerely, Christian Ochsendorf Chief Operating Manager ~~ • C M: E 11%F C7~ R N i? U 1VI TO: Mayor & City Council FROM: John Rodeberg, Director of Public Works Kent Exner, City Engineer RE: Change Order No. l -Letting No.10/Project No. OS-12 -Plaza IS Parking Lot DATE: August 16, 2005 As construction has proceeded on the Plaza 15 Parking Lot project some additional work items have been identified and deemed necessary to satisfactorily complete the project. This additional work documented within the attached Change Order No. 1 includes the following items: . • Traffic Control -Additional directional signs to adequately communicate where Plaza 15 customers/visitors should be parking to avoid conflicts with construction activities. Select Granular Borrow-Clean sand material imported from off-site to replace unsuitable existing subgrade soils. Due to the nature of these existing soils, they would have been structurally unable to support traffic loadings and accelerated the deterioration of the above pavement section. We recommend that Change Order No. l for the above referenced project be approved in the amount of $3,447.82. ca Gary Plotz-City Administrator std c~~-~1~~ ORDER ~i'~, ~ ,; CITY OFNU~CHINSION--ENGINfERINC~ DEPARTMENT `: 1!1 HASSAI~I ST S'E, HUTCHINSON MN 55.350:(,612) 23A-4209 sheet ,l oft ., r ~ ~ CONTRACTOR: Wm Mueller & Sons Inc Letting No. 10 Project No. 05-12 Park Ave, Hamburg MN 55339 Project Location: Plaza 15 DESCRIPTION OF CHANGE: 1) Additional subgrade correction due to wet clay. 2) Additional signage to aid parking issues. Item No. Spac. Raf. Item Neme Unit Quantity Dated: 07/29!2005 Unit Price Amount INCREASE ITEMS• DIVISION N-STREET CONSTRVCTION AND RESTORATION 54 2600 TRAFFIC CONTROL LUMP SUM 1 $336.20 $336.20 55 2211 SELECT GRANULAR BORROW 10% P & I ON TRAFFIC CONTROL CU. YD. PERCENT 342 10.00 $9.00 $3.36 $3,078.00 $33.62 $0.00 $0.00 $0.00 $0.00 TOTAL INCREASE ITEMS $3,447.82 DECREASE ITEMS: $0.00 $0.00 $0.00 $0.00 $0.00 TOTAL DECREASE ITEMS $0.00 NET INCREASE ----- $3,447.82 In accordance with the Contract and Specifications, the contract amount shall be adjusted in the amount of 3447.82 (add)!(dedust). An extension of -0-days shall be allowed for completion. The original completion date shall not be changed. ~~ ORLG~~i CONTRA= ~' -j Pj2EV10C1S'`~ "`~; a ` f ', '~` ~-+ " a _ = ~ z3 k ~ u~~sP„=~ ;~_.~ ~,~ ~.,~ ~ ~ ~ z ,„~~,~~.~ ~. 3 .~ 7H1$ ~. , ~ k +~ T~w,~~f~ 3K Yh JJl~rz PS ~ ,,err.-a~r0^~ r`'t A`DDJTIONS1pfDUCT10N5' ~'~ .ADDITIONIPE~UCTtO?1 .x 3 3 ~x > a ` SO oo _ `~ 6a$ 775~~ ~,~ - ...~ ,~_.._ ._. 53,447.82 ~. _ `~: ~$. ~: PPROVED~ ` ~ ~~~ ~ APPROVED: A ' Contractor Mayor DATED: 08/0112 DATED: 08Q3!'2005 ROVED: Director of Engineering DATED: 08/'15/1005 APPROVED: City Administrator DATED: 08232005 5 ~d~ • C NI. ]~ l~ C~ I~ A I~ I) ~ 7 ~: TO: Mayor & City Council FROM: John Rodeberg, Director of Public Works Kent Exner, City Engineer RE: Change Order No. 1 -Letting No. 7/Project No. OS-07, OS-08, OS-09 -Michigan Street & 2nd Avenue SW & RR Crossings/Street Maintenance DATE: August 16, 2005 Due to the very competitive bid submitted by Bauerly Companies for the RR Crossing/Street Maintenance portion of this letting, we were able to negotiate with the contractor the inclusion of additional street maintenance work. To complete this additional work in a fair and equitable manner, • the adjustment of a iota] quantity and item unit price was necessary. These adjustments documented within the attached Change Order No. ]include the following items: • Type MVS Wearing Course Mixture (l" Thin Overlay) -Additional bituminous pavement mix to complete the resurfacing of Freemont Avenue SE and miscellaneous intersections. • Edge MillOperations(Machine, Operator and Clean-Up)-Adjustmentoftheunitprice for the pavement milling work necessary to adequately match the existing pavement during the placement of bituminous thin overlays. • We recommend that Change Order No. l for the above referenced project be approved in the amount of $25,739.50. cc: GaryPlotz-City Administrator 5~~~ CFIANGE ORDER N~ .`~ '~ ~Cl~ OF H13T~HINS~~1- ENGINEERIN~_ I3E~AR~ME1t1Tw _ 11'1 Hi~1SSAN $T SE„HUTCH1NS01~1~ VIN a53v0 (5~~~'234-4~D~ , .~ sheetai21 ~, ," ., CONTRACTOR: Bauerly Companies Letting No. 7 Project No. 05-071-08/-09 4787 Shadow Wood Dr NE, Sauk Rapids MN 56379-9690 Project Location: Michigan 8 2nd Ave SW DESCRIPTION OF CHANGE: Added quantities for overlay of high maintenance areas. Dated: 0810812005 Item No. Spec. Ref. Item Name Unit Quantity Unit Price Amount INCREASE ITEMS: 10 2232 EDGE MILL OPERATIONS (MACHINE, OPERATOR AND CLEAN-UP) HOUR 20.5 $90.00 $1,845.00 13 2360 TYPE MVS WEARING COURSE MUCTURE (1" THIN OVERLAY) TON 624 $39.23 $24,470.50 , $0.00 $0.00 TOTAL INCREASE ITEMS $26,315.50 DECREASE ITEMS: 1 D 2232 EDGE MILL OPERATIONS (MACHINE, OPERATOR AND CLEAN-UP) HOUR -64 $9.00 -$576.0 $O.DO $D.00 TOTAL DECREASE ITEMS ($576.00) NfT INCREASE -----------------------°------------------------_--- $25,739.50 In accordance with the Contract and Specifications, the contract amount shall be adjusted in the amount of $ 25,739.50 (add) I `ate An extension of -0-days shall be allowed for completion. The original completion date shall not be changed. ORIGINAL CONTRACT ' AMOUNT ' PREVIOUS. ADDITIONSlDEDUCTIONS THIS TOTAL ADDITIONl9€BUCTI@N $232,420.66 30.00 $25,739.50 $258,160.'16 PPROVED: Contractor DATED: APPROVED: Mayor DATED: APPROVED: Director of Engineering ATED: APPROVED: City Administrator DATED: ,5(e) SUBDIVISION AGREEMENT Bridgewater Estates Third Addition CITY OF HUTCHINSON, MINNESOTA THIS AGREEMENT, made and entered into the day and year set forth hereinafter, by and between GPS Dickinson Partners, LLP, Fee Owner, hereinafter called the "Subdivider", and the City of Hutchinson, a Municipal Corporation in the County of McLeod, State of Minnesota, hereinafter called the "City' ; WITNESSETH: • WHEREAS, the Subdivider is the owner and developer of property situated in the County of McLeod, State of Minnesota, which has been surveyed and platted as "Bridgewater Estates Third Addition". WHEREAS, City Ordinance No. 464 and 466 requires the Subdivider to make certain improvements in the subdivision; NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS: I. SITE PREPARATION AND GRADING It is agreed and understood that the Subdivider shall be responsible for all work associated with site preparation and grading. All areas within the final plat, but outside of the rights-of--way, shall be graded to within 0.5 feet of final grade to allow for proper drainage, and the installation of utilities. The entire right-of- way shall be graded to within 0.2 feet of final subgrade, as noted in the approved improvement plans for the project. Any and all unstable soil conditions or soils unsuitable for construction in the right-of--way shall be corrected and/or replaced The Subdivider shall cleaz trees and/or debris from utility easements and rights-of- way, as per the request of the City or utility, prior to installation of the improvements. Al] soils shall be compacted to a minimum of 90% Standard Proctor Density. All work shall conform to the final approved Site Grading and Improvements Plan dated July of 2005, and shall be completed prior to the commencement of building construction on the site. The construction may be completed in stages, as approved by the City. 2. The Subdivider shall complete all work noted in Paragraph No. 1, and provide a written verification from a professional engineer or surveyor, prior to installation of utilities and/or issuance of building permits. This • Bridgewater Estates 3rd Addition/Page 1 - CC: August 23, 2005 51f~ work must be approved by City staff and related utilities to allow for extension of utilities to serve the site. Any costs associated with these requirements shall be the sole responsibility of the Subdivider, and are not • financed through the City. 3. It shall be the responsibility of the Subdivider to assure that the Site Grading Plan and Final Plat are being conformed to during house construction within this subdivision. This responsibility shall include the notification of contractors, builders, and lot buyers as to the drainage and grading requirements, lowest floor elevation requirements, and the type of house (i.e. split entry, walkout, etc.) that may or may not be able to be built for each lot. Site plans for each house must conform to the approved Site Grading Plan. It is essential that the vertical and horizontal locations of the structure be verified to avoid conflict with infrastructure and potential drainage issues. Any costs associated with corecting these conflicts and issues shall be the sole responsibility of the Subdivider. 4. The Subdivider shall provide all turf establishment and erosion control necessary to protect the utilities and street improvements on the entire site. The Subdivider shall also provide all erosion control during site grading and improvement work necessary to meet local, state and federal requirements. Any subdivision ' disturbing one acre or more of land needs to obtain an NPDES/SDS (National Pollutant Dischazge Elimination System/State Disposal System) permit through the MPCA (Minnesota Pollution Control Agency). Information regarding the permitting process can be accessed at www.pcastate.mn.us/water/stormwater/stormwater-c.htnil or by calling the City's Regulatory Specialist at (320) 234-5682. A copy of the submitted permit and associated Stormwater Pollution Prevention Plan (SWPPP) must be provided to the Regulatory Specialist prior to construction commencing within the site. All disturbed areas shall be seeded, mulched, and disc anchored with MNDOT seed mix 250GR within 48 hours after Final grading is completed or within one week after rough grading is completed. Any areas disturbed adj acent to a stonnwater pond, drainage ditch or existing wetland shall be seeded with MNDOT seed mixture 310 and covered with erosion control blanket. Any corective measures to address erosion control and turf • establishment are at the expense of the Subdivider. The City (City Engineer) shall notify the Subdivider in writing ofwork requiring corection within a specific completion timeframe. Ifno corective action is taken by the Subdivider within the stated timeframe, the City reserves the right to complete this work and invoice or assess the Subdivider. 5. It is understood and agreed that it shall be the Subdivider's responsibility to provide survey control points for all infrastructure and site construction. 6. It is understood and agreed that the Subdivider shall be responsible for maintaining the condition of the infrastructure, mowing, weed control and other site maintenance issues during site and building construction. The Subdivider shall be required to maintain and clean the roadways and storm sewers/ponds on a regular basis, and shall repair or replace any street, storm sewer/ponds, sanitary sewer or watennain infrastructure damaged by operations related to site and building construction. The Subdivider hereby designates Prieve Landscanine as the person responsible for site issues. The City will not be responsible for any maintenance of the site. The City (City Engineer) shall notify the Subdivider in writing, of work needing to be performed within a specific completion timeframe. Ifno action is taken by the Subdivider within the stated timeframe, the City reserves the right to complete this work and invoice or assess the Subdivider. 7. The Subdividers will complete the grading by September ], 2006. Turf establishment and/or necessary erosion control on the site by November 15, 2005. If the Subdivider fails to meet this completion date, the City reserves the right to hire a contractor to finish the remaining work and invoice or assess the Subdivider for the associated costs. • Bridgewater Estates 3rd Addition/Page 2 - CC: August 23, 2005 s rf~ II. ASSE5SMENTS/11VIPROVEMENTS 1. The Subdivider hereby agrees to construct lateral and trunk sanitary sewer mains and appurtenances, lateral and trunk watermain and appurtenances, sanitary sewer service leads, water service leads, lateral and trunk storm sewer and appurtenances, curb and gutter, street grading, street base, street surfacing, street signs and lighting, and appurtenances to serve the entire plat. All work shall be completed by forces employed by the Subdivider, and the work shall meet all applicable local, state and federal regulations and construction standards. The City (City Engineer) shall review all construction documents and shall have overview and final approval of all infrastructure proposed. The City Engineer must provide a response within 10 business days of receive of fma] plans. 2. It is understood and agreed that the City of Hutchinson shall be responsible for the additional costs associated with the necessary oversizing and extension of lateral mains required to install trunk sanitary sewer and trunk watennain that serve azeas beyond the plat, as noted within City policy and agreed to by the City Engineer. The development of this plat requires the extension of approximately 150 LF of 10" PVC watermain along South Grade Road. Current City policy calls for assessing 25% of the cost of a typical 8" lateral watermain to the benefiting property adjacent to and/or served by trunk mains. Additional costs to installlrelocate appurtenances on tmnk watermains such as gate valves and hydrants will be the City's responsibility based on the private bid prices (subject to City approval). Thus, the City will reimburse the Subdivider for the entire cost of the 150 LF trunk watermain extension and installation/relocation of associated appurtenances less 25% of the cost to install 150 LF of 8" watermain based the unit prices within the Private Bid received by the Subdivider from R & R Excavating on 7/1 I /2005 (subject to City approval). The calculated reimbursement of $2,850 will be from the City's Water/Sanitary Sewer Funds and distributed to the Subdivider via a City check after the work is completed and accepted by the City. • 3. It is understood and agreed that the City shall collect a lump sum fee for services provided to the Subdivider. It is agreed that the Subdivider will have a consultant, Surveying & Engineering Professionals, Inc., complete the following at his own expense: project design (including plans and specifications), construction staking, general project administration, construction observation, and detailed as-built drawings in AutoCAD. The City shall complete the following at the noted percent of construction cost. It is agreed and understood that these costs will be paid prior to commencement of construction and that rates aze in consideration of work to be famished and completed by the Subdivider's consultant. HRA Affordable Housing Fund 1.0% Design Review/Preliminary Layout 2.5% Administrative/Prelim. Development 1.5% Comprehensive Planning ].5% LeQal/Fiscal/Financia] 0.5% TOTAL CITY EXPENSE RATE 7.0%* *The expense rate shall be applied against the total construction cost excluding grading ($340,617 based on the submitted Private Bid from R & R Excavating dated 7/11/2005). Thus, the lump sum fee shall be $23,843. 4. It is understood and agreed that each lot shall pay a Trunk Sanitary Sewer and Watermain Access Charge. This fee will compensate the City for improvements required to provide trunk sanitary sewer and watermain access to the plat property boundary. This fee shall be based on the most current fees being charged by the City and is due at the time of building permit issuance. These rates for the year 2005 are $1,415 per lot for • Bridgewater Estates 3rd Addition/Page 3 - CC: August 23, 2005 5 ~~~ trunk sanitary sewer and $1,075 per lot for trunk watermain. 5. It is understood and agreed that the subdivider shall be responsible for constructing a 10' wide bituminous trail within the plat parallel to the north side of South Grade Road. The City will ultimately complete the design and construction of a trail extension from the west end of the trail within this plat to Lakewood Drive. Trail easement documents must be drafted and recorded for all trails within private property. The City shall be responsible for long-term maintenance (bituminous surface repairs, sealcoating, etc.) and individual property owners would be required to conduct general daily maintenance (snow removal, sweeping, etc.). It is understood and agreed that the Subdivider shall record these documents at the McLeod County Recorder's Office or McLeod County Registrar of Titles Office at the Subdividers expense. 6. It is understood and agreed that any agreements regarding the method and procedure for assessments from municipal improvements shall, at the sole option of the City, cease to be effective thirty-six (36) months following approval of the Subdivision Agreement by the City. The City may exercise the option granted herein by giving written notice at any time, either before or after the expiration of the thirty-six (36) month period, ofthe City's intention to nullify the method and procedure for spreading assessments under the teens of the Subdivision Agreement. In the event the City so elects, all assessments subsequent to the notice shall be spread and imposed pursuant to Chapter 429 of Minnesota Statutes or other applicable laws. The written notice called for by this paragraph shall be given to the fee owner of the property as disclosed by the records of the McLeod County Recorder or Registraz of Titles. III. OTHER FEES, CHARGES AND DEDICATIONS 1. It is agreed and understood that the Subdivider shall provide a surety in the form of a bond or letter of credit in favor of the City, in the amount of 100% of the proposed improvements cost excluding grading ($340,617 based on the submitted Private Bid from R & R Excavating dated 7/11/2005). The bond or letter of credit is due prior to the commencement of grading operations. 2. It is understood and agreed that the Subdivider shall pay a fee of $800 per lot for single-family residents as a municipal electric service access chazge, as noted by agreements with McLeod Cooperative Power Association (Coop). These fees shall be collected with the building permit for all properties, unless otherwise noted in the agreement with McLeod Cooperative Power Association. The checks shall be made out directly to the "McLeod Cooperative Power Association". It is understood and agreed that the Subdivider shall, prior to installation of utilities, pay connection fees for Electric/Gas Service to Hutchinson Utilities for all units to be served in the final plat. These fees include the standard connection to each house including required meters. Services larger than the standard residential sizes will be at a higher cost. 4. It is understood and agreed that a Parks and Playground Contribution shall be made in the form of dedication of land and trail construction per the Subdivision Agreement for Bridgewater Estates Second Addition (McLeod County Document Number A-306662, Section III, Note 3). Therefore, there is no chazge per parcel for this entire development per the previous agreement. 5. The Subdivider will provide dollars to the City for the planting ofboulevard trees at a rate of $] 80 per tree (2 trees per lot x 291ots), which equals $10,440. The City will keep these dollars in reserve until a majority of the development has buildings completed and then plant the trees within the boulevard areas. The location of trees shall be determined by the City Forester. Bridgewater Estates 3rd Addition/Page 4 - CC: August 23, 2005 5~-~) rv. cEIVERAL • 1. It is understood and ageed that no building permits will be issued for building construction prior to the utility and street improvements being completed and accepted by the City. Any damage to sturounding private property or City infrastructure that occurs due to building construction shall be the responsibility of the Subdivider to correct. 2. It is understood and ageed that the intersection of Honey Tree Road will be removed by the Subdivider during the completion of the proposed grading and improvements within this plat. 3. It is understood and ageed that all local, state and federal pemuts required to be obtained for the development shall be the responsibility of the Subdivider. 4. This ageement shall be binding upon and extend to the heirs, representatives, assigns and successors of the parties. 5. It is understood and ageed that the Subdivider shall record this agreement at the McLeod County Recorder's Office or McLeod County Registrar of Titles Office, and that no Building Permits will be issued until said Ageement is recorded and a certified copy of this ageement is provided to the City. The Subdivider shall pay all costs associated with said recording. Bridgewater Estates 3rd Addition/Page 5 - CC: August 23, 2005 ,~f) SIGNATURES n LJ • GPS DICKINSON PARTNERS, LLP (Subdivider) Michael R WiQley. Manaeine Partner Signature: Michael R. Wigley Printed Name & Title STATE OF MINNESOTA The foregoing instrument was acknowledged before me this COUNTY OF day of 2005, by Michael R. Wigley, Managing Partner of GPS Dickinson Partners, LLP, a Minnesota Limited Liability Partnership. • • Notary Public, My Commission Expires County, Minnesota Bridgewater Estates 3rd Addition/Page 6 - CC: August 23, 2005 5FF~ MORTGAGEE: Wells Fargo Bank, National Association • Signature: Randy L. Stille STATE OF MINNESOTA COUNTY OF U Randv L Stille, Vice President Printed Name & Title The foregoing instrument was acknowledged before the this day of , 2005, by Randy L. Stille, Vice President of Wells Fazgo Bank, National Association, a National Banking Association, Mortgagee. Notary Public. My Commission Expires County, Minnesota Bridgewater Estates 3rd Addition/Page 7 - CC: August 23, 2005 5cf) APPROVED BY THE HUTCHINSON CITY COUNCIL THE 23RD DAY OF AUGUST, 2005. • CITY OF HUTCHINSON: STEVEN W. COOK, MAYOR GARY D. PLOTZ, CITY ADMINISTRATOR STATE OF MINNESOTA The foregoing instrument was aclrnowledged before me this COUNTY OF day of 2005, by Steven W. Cook, Mayor and Gary D. Plotz, City Administrator of the City of Hutchinson. Notary Public, My Commission Expires THIS INSTRUMENT WAS DRAFTED BY: Kent Exner, PE, CiTy Engineer Julie Wischnack, AICP, Duector of Planning/Zoning/Building Hutchinson City Center 111 Hassan Street SE • Hutchinson, MN 55350-2522 (320-234-4212) or(320-234-4258) County, Minnesota • Bridgewater Estates 3rd Addition/Page 8 - CC: August 23, 2005 5rf) • ~ Hutchinson Area Health Care Hutchinson Community Hospital Bun~sMmaor Nuni~2g Hon2e Dassel Medical Center 1695 Highway 15 South Hutchinson. MN »350 (320) 234-5000 August 17, 2005 The Honorable Mayor Steve Cook and Members of the City Council Hutchinson City Center 1 I 1 Hassan Street SE Hutchinson, MN 55350 Dear Mayor Cook and City Council Members: The Board of Directors of Hutchinson Area Health Care (HAHC), as part of their regulaz meeting on August 16, 2005, adopted a Resolution of the Board of Directors regarding the Computed Tomography (CT) purchase which was authorized by the City Council at your July 26`h meeting. (attached) The item requested is explained in the following excerpt from minutes (draft) of the Hospital Boazd . Meeting. "Computed Tomogranhy (CT) Scanner. The Board was apprised of a problem with the acquisition of a replacement CT Scanner. A Resolution was presented regarding the inability of Delta Medical Systems to deliver a complete Siemens CT System at the bid price $678,438.00. Delta Medical Systems was issued a purchase order for the equipment however has sixty days to perform. Graves explained to the board, the hospital is experiencing problems with the existing equipment and there is an immediate need to replace the curzent system. It was therefore recommended to return the bid bond (certified check) to Delta and award the bid to the next lowest qualified bidder which is NXC Imaging -Toshiba, in the amount of $891,965.00. • Following discussion, motion was made by Knutson, seconded by Ristau, to recommend to the City Council that the bid of Delta Medical Systems be rejected and the bid be awarded to NXC Imaging -Toshiba at a cost of $891,965.00 for a sixteen slice CT System. All were in favor. Motion carzied." Thank you, in advance, for consideration of these requests. Marc Sebora and Kay Peterson will be able to address questions you may have regarding this item at your meeting on Tuesday. incerely, ~` 1 t • Philip G. Graves President 5c5) HUTCHINSON AREA HEALTH CARE Resolutions of Board of Directors C~ WHEREAS, Hutchinson Area Health Care ("HAHC") is a municipal hospital subject to public competitive bidding procedures; and WHEREAS, HAHC requires a new CT scanner to replace its existing scanner; and WHEREAS, pursuant to the legally mandated process for competitive bids HAHC issued a request for bids to purchase a new CT scanner and received four responses; and WHEREAS, the bid submitted by Delta Medical Systems appeared to be the lowest bid; and WHEREAS, HAHC was required to accept the lowest bid and therefore issued a purchase order dated July 29, 2005 to Delta Medical Systems for the scanner; and WHEREAS, subsequent to the date of the purchase order, Delta Medical Systems stated that it could not provide all items included in the HAHC bid request for its bid price of $678,438; and WHEREAS, the price at which Delta Medical Systems has stated it could meet the requirements of the HAHC bid request exceeds the price of another bidder; and WHEREAS, Delta Medical Systems, through its legal counsel, has offered to withdraw its bid, subject to return of its bid bond, which took the form of a cashier's check in the amount of $36,250; and WHEREAS, the Board of Directors deems it in the best interests of HAHC to release Delta Medical Systems from its bid, return its cashier's check, and accept the bid of the lowest bidder; NOW, THEREFORE, it is hereby: RESOLVED, that Delta Medical Systems is released from its bid to provide a CT scanner to HAHC. RESOLVED FURTHER, that the President of HAHC is authorized and directed to work with legal counsel to negotiate a settlement agreement with Delta Medical Systems and upon negotiation of an acceptable settlement to return the cashier's check in the amount of $36,250 to Delta Medical Systems. RESOLVED FURTHER, that HAHC shall accept the bid of the lowest qualified bidder, NXC Imaging -Toshiba, and the appropriate officers of HAHC are authorized and directed to take all steps necessary to complete the purchase of the CT scanner from same. • 5~5~ HUTCHINSON AREA HEALTH CARE CT Scanner Bid Opening: Jr~ly 7, 2005 -Conference Room E - 2:05 PM Name of Bidder Bid Bond Base Bid Nicole Zitarelli 5% $1,144,528.40 Account Manager GE Medical Systems 5816 South Newton Avenue Minnea olis, MN 55419 _ Joe Maresh 5% $891.965.00 Account Executive NXC Imaging -Toshiba 2118 4th Avenue South Minnea olis, MN 55404 _ Chris Ward 5% $678,438.00 Account Manager ~ Siemens Med. Solutions & Delta Med Systems 170 140"' Avenue Ce Ion, MN 56121 Curt Van Deen 5% $1,053,197.00 Phillips Medical Systems 1417 Boulder Caurt Greensboro, NC 27409 Attendees:_Dr. Beggs, Kara Neubarth, Jackie Rossi, Robyn Erickson, Paula Kettner, Amy Beem, Chris Ward, Siemens Med. Solutions & Delta Med. Systems; Joe Maresh, NXC Imaging -Toshiba; Curt Van Deen, Phillips Medical Systems, and Corrirme Schlueter, Recorder; Dale Anderson and Nick Michael from Consulting Radiology. ~\ ~~ ADM:Vi:~BIDTABCTSCAIVNER.07.OZO5DOC • FREERS & ASSOCIATES INC O To: Hutchinson City Council From: Jessica Cook and Mark Ruff W Subject: Tax Increment District No. 4-14 Date: August 16, 2005 The Hutchinson City Council and EDA have determined that there is a need for redevelopment in the downtown area, and have been working with Cornerstone Commons to redevelop one of the prominent corners on Main Street. Ehlers & Associates has prepared a Tax Increment Plan for the proposed TIF District 4- 14, which would provide "Pay-As-You-Go" assistance to the project developer. Estimated Increment and Budeet: The estimates of revenue and expenses in the plan are "not to exceed" numbers that set forth the maximum amount the City and EDA can spend on redevelopment in the future. The budget does not commit the City to those expenditures or dollar amounts. Based on the County assessor's estimate of the value of the completed development, Ehlers estimates that over the next 25 years the district will generate $],068,000 million of increment. The value of that increment stream in today's dollars is approximately $436,0000. The maximum authorized uses of increment are listed on the attached summary. Findin¢s: In the resolution establishing the TIF District, the Council makes several findings required under state law. The two most significant of these are: The "But For" Finding. The Council finds that the proposed redevelopment would not occur in the foreseeable future without the use of tax increment. This finding is supported by the analysis and letter in Appendix G of the Plan. 2. Redevelopment District. The Council finds that the District meets the statutory tests to qualify as a redevelopment district. This finding is based on an analysis completed by City Building Official and EDA and reviewed by the City's counsel. • Attached is a summary of the proposed Tax Increment District No. 4-14. C~ (a) EHLERS • SS60CISTFS INC Ehlers & Associates, Inc. City of Hutchinson Tax Increment Financing District No. 4-14 Overview The following summary contains an overview of the basic elements of the Tax Increment Financing Plan for Tax Increment Financing District No. 4-14. More detailed information on each of these topics can be found in the complete TIF Plan. Proposed action: Establishment of Tax Increment Financing District No. 4-14 (District) and the adoption of a Tax Increment Financing Plan. (TIF Plan). Modification to the Development Program for Development District No. 4. Generally the substantive changes include the establishment of the District. Type of TIF District A redevelopment district Parcel Numbers: 23-056-3000 23-056-2990 23-056-2980 Proposed The District is being created to facilitate the redevelopment of the historic Development: downtown area with a two-story commercial building containing approximately 12 000 sq. ft. of office and retail space. Maximum duration: The duration of the District will be 25 years from the date of receipt of the first increment (26 years of increment). The date of receipt of the first tax increment is expected to be 2008. Thus, it is estimated that the District, including any modifications of the TIF Plan for subsequent phases or other changes, would terminate after 2033, or when the TIF Plan is satisfied. Estimated annual tax increment Up to $42 044 Authorized uses: The TIF Plan contains a budget that authorizes the maximum amount that may be expended: LandBuilding Acquisition .................................................... $275,000 Site Improvements/Preparation/Environmental ..................... $153,440 Public Utilities ........................................................................... $5,000 Relocation .................................................................................. $5,000 Streets and Sidewalks .............................................................. $50,000 Interest ................................................................................... $573,000 Administrative Costs (up to ] 0%) ......................................... $106.827 PROJECT COSTS TOTAL ............................................ 16 See Subsection 2-10, page 2-6 of the TIF Plan for the full budget authorization. Additional uses of funds are authorized which include inter- fund loans and transfers and bonded indebtedness. The actual amount of tax increment assistance will be determined for each project after the costs of public improvements are known and the developer provides a detailed project proforma. ~LQ T!F District Overview • Form of financing: The project will be financed through a bond issue, apay-as-you-go note, and/or an interfund loan. Administrative fee: Up to 10% of annual increment, if costs are justified. Interfund Loan If the City wants to pay for administrative expenditures from a tax increment Requirement: fund, it is recommended that a resolution authorizing a loan from another fund be passed PRIOR to the issuance of the check. 4 Year Activity Rule After four years from the date of certification of the District one of the (§ 469.176 Subd. 6) following activities must have been commenced on each parcel in the District: • Demolition • Rehabilitation • Renovation • Other site preparation (not including utility services such as sewer and water) • If the activity has not been started by approximately August 2009, no additional tax increment may be taken from that parcel until the commencement of a qualifying activity. 5 Year Rule Within 5 years of certification revenues derived from tax increments must be (~ 469.1763 Subd. 3) expended or obligated to be expended. Tax increments are considered to have been expended on an activity within the District if one of the following occurs: • The revenues are actually paid to a third party with respect to the activity • Bonds, the proceeds of which must be used to finance the activity, are • issued and sold to a third party, the revenues are spent to repay the bonds, and the proceeds of the bonds either are reasonably expected to be spent before the end of the later of (i) the five year period, or (ii) a reasonable temporary period within the meaning of the use of that term under §. 148(c)(1) of the Internal Revenue Code, or are deposited in a reasonably required reserve or replacement fund • Binding contracts with a third party are entered into for performance of the activity and the revenues are spent under the contractual obligation • Costs with respect to the activity are paid and the revenues are spent to reimburse for payment of the costs, including interest on unreimbursed costs. • Any obligations in the District made after approximately August 2010, will not be eligible for repayment from tax increments. The reasons and facts supporting the findings for the adoption of the TIF Plan for the District, as required pursuant to M.S., Section 969.175, Subd. 3, are included in Exhibit A of the City resolution. • Page 2 ~i FREERS ~ ~~~ TIF District Overview • MAP OF DEVELOPMENT DISTRICT N0.4 AND TAX INCREMENT FINANCING DISTRICT NO. 4-14 • Page 3 FREERS ~ca~ CITY OF HUTCHINSON COUNTY OF MCLEOD • STATE OF MINNESOTA Council member introduced the following resolution and moved its adoption: RESOLUTION NO. 12800 RESOLUTION ADOPTING A MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 4; AND ESTABLISHING TAX INCREMENT FINANCING DISTRICT NO. 4-14 THEREIN AND ADOPTING A TAX INCREMENT FINANCING PLAN THEREFOR. BE iT RESOLVED by the City Council of the City of Hutchinson, Minnesota, as follows: Section 1. Recitals 1.01. The City Council (the "Council") of the City of Hutchinson (the "City") has heretofore established Development District No. 4 and adopted the Development Program therefor. It has been proposed that the City adopt a Modification to the Development Program for Development District No. 4 (the "Development Program Modification") and establish Tax Increment Financing District No. 4-14 (the "District") therein and adopt a Tax Increment Financing Plan (the "TIF Plan") therefor (the Development Program Modification and the TIF Plan are referred to collectively herein as the "Program Modification and TIF Plan"); all pursuant to and in conformity with applicable law, including Minnesota Statutes, Sections 469.124 to 469.134 and Sections 469.174 to 469.1799, all inclusive, as amended, (the "Act") all as reflected in the Program Modification and TIF Plan, and presented for the Council's consideration. 1.02. The City has investigated the facts relating to the Program Modification and TIF Plan and has caused the Program Modification and TIF Plan to be prepared. 1.03. The City has performed all actions required by law to be performed prior to the establishment of the District and the adoption and approval of the proposed Program Modification and TIF Plan, including, but not limited to, notification of McLeod County and Independent School District No. 423 having taxing jurisdiction over the property to be included in the District, a review of and written comment on the Program Modification and TIF Plan by the City Planning Commission, and the holding of a public hearing upon published notice as required by law. 1.04. Certain written reports (the "Reports") relating to the Program Modification and TIF Plan and to the activities contemplated therein have heretofore been prepared by staff and consultants and submitted to the Council and/or made a part of the City files and proceedings on the Program Modification and TIF Plan. The Reports include data, information and/or substantiation constituting or relating to the basis for the other Findings and determinations made in this resolution. The Council hereby confirms, ratifies and adopts the Reports, which are hereby incorporated into and made as fully a part of this resolution to the same extent as if set forth in full herein. 1.05 The boundaries of Development District No. 4 are not being expanded. • c~L~ Section 2. Findings for the Ado~on and Aaoroval of the Program Modification and TIF Plan 2.01. The Council hereby finds that the Program Modification and TIF Plan are intended and, in the judgment of this Council, the effect of such actions will be, to provide an impetus for development in the public interest and accomplish certain objectives as specified in the Program Modification and TIF Plan, which are hereby incorporated herein. Section 3. Findings for the Establishment of Tax Increment Financing District No. 4-14 3.01. The Council hereby finds that the District is in the public interest and is a "redevelopment district" under Minnesota Statutes, Section 469.174, Subd. ]0 (a)(1). 3.02. The Council further finds that the proposed redevelopment would not occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the District permitted by the TIF Plan, that the Program Modification and TIF Plan conform to the general plan for the development or redevelopment of the City as a whole; and that the Program Modification and TIF Plan will afford maximum opportunity consistent with the sound needs of the City as a whole, for the development or redevelopment of the District by private enterprise. 3.03. The Council further finds, declares and determines that the City made the above findings stated in this Section and has set forth the reasons and supporting facts for each determination in writing, attached hereto as Exhibit A. Section 4. Public Pumose 4.01. The adoption of the Program Modification and TIF Plan conforms in all respects to the requirements of the Act and will help fulfill a need to redevelop an area of the City that is characterized by blight, occupied by substandard buildings, and contaminated with pollutants; and that the financial assistance described in the TIF Plan will revitalize this area, provide employment opportunities, and expand the tax base; and that, because these benefits would not accrue without the assistance provided, any benefits received by private redevelopers are incidental to the broader benefits achieved by the overall redevelopment of the District. Section 5. Approval and Adoption of the Program Modification and TIF Plan 5.01. The Program Modification and TIF Plan, as presented to the Council on this date, including without limitation the findings and statements of objectives contained therein, are hereby approved, ratified, established, and adopted and shall be placed on file in the office of the City Administrator. 5.02. The staff of the City, the City's advisors and legal counsel are authorized and directed to proceed with the implementation of the Program Modification and TIF Plan and to negotiate, draft, prepare and present to this Council for its consideration all further plans, resolutions, documents and contracts necessary for this purpose. ~L~ • 5.03 The Auditor of McLeod County is requested to certify the original net tax capacity of the District, as described in the Program Modification and TIF Plan, and to certify in each year thereafter the amount by which the original net tax capacity has increased or decreased; and the City is authorized and directed to forthwith transmit this request to the County Auditor in such form and content as the Auditor may specify, together with a list of all properties within the District, for which building permits have been issued during the 18 months immediately preceding the adoption of this resolution. 5.04: The City Administrator is further authorized and directed to file a copy of the Program Modification and T1F Plan with the Commissioner of the Minnesota Department of Revenue and the Office of the State Auditor pursuant to Minnesota Statutes 469.175, Subd. 4a. The motion for the adoption of the foregoing resolution was duly seconded by Council member and upon a vote being taken thereon, the following voted in favor thereof: • and the following voted against the same: Dated: August 23, 2005 Steve Cook, Mayor (Seal) ATTEST: Gary Plotz, City Administrator ~L~ EXHIBIT A • RESOLUTION NO. The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan (TIF Plan) for Tax Increment Financing District No. 4-]4 (District), as required pursuant to Minnesota Statutes, Section 469.175, Subdivision 3 are as follows: Finding that Tax Increment Financing District No. 4-14 is a redevelopment district as defned in M.S., Section 469.174, Subd. 10(x)(1). The District consists of three parcels, with plans to redevelop the area for commercial purposes. At least 70 percent of the area of the District consists of parcels occupied by buildings, streets, utilities, paved or gravel parking lots or other similaz structures and more than 50 percent of the buildings in the District, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance. (See Appendix F of the TIF Plan.) 2. Finding that the proposed development, in the opinion of the City Council, would not reasonably be expected to occur. solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of Tax Increment Financing District No. 4-14 permitted by the TIF Plan. The proposed development, in the opinion of the City, would not reasonably be expected to occur solely • through private investment within the reasonably foreseeable future: This finding is supported by the fact [hat the redevelopment proposed in this plan meets the City's objectives for redevelopment. Due to the high cost of redevelopment on the parcels currently occupied by substandard buildings, the need to assemble properties owned by multiple parties to create a site lazge enough for new development, the environmental contaminations, the age and condition of the public infrastructure and the cost of financing the proposed improvements, this project is feasible only through assistance, in part, from tax increment financing. The developer was asked for and provided a letter and a proforma as justification that the developer would not have gone forward without tax increment assistance. In addition, the first mortgage lender has indicated in writing that the bank loan in contingent upon the receipt of tax increment. (See attachment in Appendix G ofthe TIF Plan.) The increased market value of the site that could reasonably be expected to occur without the use of tax increment f Wanting would be less than the increase in market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the TIF District permitted by the TIF Plan: This finding is justified on the grounds that the cost of site acquisition, demolition of obsolete and substandard buildings, environmental remediation and public improvements add to the total redevelopment cost. Historically, site and public improvement costs in the downtown area have made redevelopment infeasible without tax increment assistance. The largest parcel, occupied by a gas station, has been vacant and available for redevelopment for at least 6 years without any development occurring. Therefore, the City reasonably determines that no other redevelopment of similar scope is anticipated on this site without substantially similar assistance being provided to the development. To summarize this finding: a. The City's estimate of the amount by which the market value of the site will increase without the use of • tax increment financing is $0 (for the reasons described above), except some unknown amount of ~cQ~ appreciation. • b. If the proposed development to be assisted with tax increment occurs in the District, the total increase in market value would be approximately $1,502,700. The increase in market value would be due primarily to new construction within the District. (See Appendix D and G of TIF Plan) c. The present value of tax increments from the District for the maximum duration of the district permitted by the TIF Plan is estimated to be no more than $435,927. (See Appendix G ofTIF Plan) d. Even if some development other than the proposed development were to occur, the Council finds that no alternative would occur that would produce a market value increase greater than $1,066,773 (the amount in clause b less the amount in clause c) without tax increment assistance. 3. Finding that the Tax Increment Financing Plan for Tax Increment Financing District No. 4-14 conforms to the general plan far the development or redevelopment of the municipality as a whole. The Planning Commission reviewed the TIF Plan and found that the TIF Plan conforms to the general development plan of the City. 4. Finding that the Tax Increment Financing'Plan for Tax Increment Financing District No. 4-14 will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment of Development District No. 4 byprivate enterprise. The project to be assisted by the TIF District will result in the renovation of substandard properties, redevelopment of contaminated sites, revitalization of the historic downtown, increased tax base of the State and add a high quality development to the City: • U ~(~ CITY OF HUTCHINSON COUNTY OF MCLEOD • STATE OF MINNESOTA Council member introduced the following resolution and moved its adoption: RESOLUTION NO. 12801 RESOLUTION AUTHORIZING AN INTERFUND LOAN FOR ADVANCE OF CERTAIN COSTS IN CONNECTION WITH TAX INCREMENT FINANCING DISTRICT NO.4-14. BE IT RESOLVED by the City Council (the "Council") of the City of Hutchinson, Minnesota (the "City"), as follows: Section ]. Backeround. 1.01. The City has heretofore approved the establishment of Tax Increment Financing District No. 4-14 ("TIF District No. 4-14") within Development District No. 4 (the "Project"), and has adopted a Tax Increment Financing Plan (the "TIF Plan") for the purpose of financing certain improvements within the Project. 1.02. The City has determined to pay for certain costs identified in the TIF Plan consisting of land building acquisition, site improvements/preparation/environmental, public utilities, relocation, streets . and sidewalks, interest and administrative costs (collectively, the "Qualified Costs"), which costs may be financed on a temporary basis from City funds available for such purposes. 1.03. Under Minnesota Statutes, Section 469.178, Subd. 7, the City is authorized to advance or loan money from the City's genera] fund or any other fund from which such advances may be legally made, in order to finance the Qualified Costs. 1.04. The City intends to reimburse itself for the Qualified Costs from tax increments derived from TIF District No. 4-14 in accordance with the terms of this resolution (which terms are referred to collectively as the "Interfund Loan"). Section 2. Terms of Interfund Loan. 2,01. The City may advance from time to time, and from any available funds, moneys to pay administrative costs related to the TIF District, in a principal amount up to $250,000. The actual amount of the loan will be the lesser of the actual expenditures or $250,000. The City will reimburse itself for such advances together with interest at the rate of 4% per annum (the "Interfund Loan"). Interest accrues on the principal amount from the date of each advance. The interest rate is no more than the greatest of the rate specified under Minnesota Statutes, Section 270.75 and Section 549.09, both in effect for calendar year 2005. The interest rate stated above will be the interest rate for the term of the loan. 2.02. Principal and interest ("Payments") on the Interfund Loan shall be paid semi-annually on each August 1 and February 1 (each a "Payment Date"), commencing on the first Payment Date on which the Authority has Available Tax Increment (defined below), or on any other dates determined by the City • Administrator, through the date of last receipt of tax increment from the TIF District. t~L~ . 2.03. Payments on this Interfund Loan are payable solely from "Available Tax Increment," which shall mean, on each Payment Date, all of the tax increment generated in the preceding six (6) months with respect to the property within TIF District No. 4-14 and remitted to the City by McLeod County, all in accordance with Minnesota Statutes, Sections 469.174 to 469.1799, all inclusive, as amended. Payments on this Interfund Loan may be subordinated to any outstanding or future bands, notes or contracts secured in whole or in part with Available Tax Increment, and are on parity with any other outstanding or future Interfund loans secured in whole or in part with Available Tax Increment. 2.04. The principal sum and all accrued interest payable under this Interfund Loan are pre- payable in whole or in part at any time by the City without premium or penalty. No partial prepayment shall affect the amount or timing of any other regular payment otherwise required to be made under this Interfund Loan. 2.05. This Interfund Loan is evidence of an internal borrowing by the City in accordance with Minnesota Statutes, Section 469.178, Subd. 7, and is a limited obligation payable solely from Available 'fax Increment pledged to the payment hereof under this resolution. This Interfund Loan and the interest hereon shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including, without limitation, the City. Neither the State of Minnesota, nor any political subdivision thereof shall be obligated to pay the principal of or interest on this Interfund Loan or other costs incident hereto except out of Available Tax Increment, and neither the full faith and credit nor the taxing power of the State of Minnesota or any political subdivision thereof is pledged to the payment of the principal of or interest on this Interfund Loan or other costs incident hereto. The City shall have no obligation to pay any principal amount of the Interfund Loan or accrued interest thereon, which may remain unpaid after the final Payment Date. • 2.06. The City may amend the terms of this Interfund Loan at any time by resolution of the City Council, including a determination to forgive the outstanding principal amount and accrued interest to the extent permissible under law. Section 3. Effective Date. This resolution is effective upon the date of its approval. The motion for the adoption of the foregoing resolution was duly seconded by Council member and upon a vote being taken thereon, the following voted in favor thereof: and the following voted against the same: Dated: August 23, 2005 Steve Cook, Mayor • (Seal) ATTEST: Gary Plotz, City Administrator c~t~J C~ MODIFICATION TO THE DEVELOPMENT PROGRAM. FOR DEVELOPMENT DISTRICT N0.4 and the TAX INCREMENT FINANCING PLAN for the establishment of TAX INCREMENT FINANCING DISTRICT NO.4-14 (a redevelopment district) within DEVELOPMENT DISTRICT NO.4 CITY OF HUTCHINSON COUNTY OF MCLEOD STATE OF MINNESOTA Public Hearing: August 23, 2005 Adopted: • EHLERS 6 ASSOCIATES INC As of August 12, 2005 Draft for Ciry Council Review/Public Hearing Prepared by: EHLERS & ASSOCIATES, INC. 3060 Centre Pointe Drive, Roseville, Minnesota 55113-1105 651-697-8500 fax: 651-697-8555 www.ehlers-inc.com r0.) • TABLE OF CONTENTS (for reference purposes only) SECTION 1-MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT N0.4 ..................................... 1-1 Foreword ............................................................. 1-1 SECTION !I -TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 4-f4 ...................... . 2-1 Subsection 2-1. Foreword .............................................. . 2-1 Subsection 2-2. Statutory Authority ....................................... . 2-1 Subsection 2-3. Statement of Objectives .................................. . 2-1 Subsection 2~. Development Program Overview ........................... . 2-1 Subsection 2-5. Description of Property in the District and Property To Be Acquired 2-2 Subsection 2-6. Classification of the District ................................ . 2-2 Subsection 2-7. Duration of the District .................................... . 2-4 Subsection 2-8. Original Tax Capacity, Tax Rate and Estimated Captured Net Tax Capacity Value/Increment and Notification of Prior Planned Improvements ............... . 2-4 Subsection 2-9. Sources of Revenue/Bonded Indebtedness ................... . 2-5 Subsection 2-10. Uses of Funds .......................................... . 2-6 Subsection 2-11. Business Subsidies ...................................... . 2-7 Subsection 2-12. County Road Costs .........:............................ . 2-8 Subsection 2-13. Estimated Impact on Other Taxing Jurisdictions ................ . 2-8 Subsection 2-14. Supporting Documentation ................................ . 2-9 Subsection 2-15. Definition of Tax Increment Revenues ....................... . 2-9 Subsection 2-16. Modifications to the District ................................ . 2-9 Subsection 2-17. . . ... . Administrative Expenses 2-10 • Subsection 2-18. :::::::::::::: ::::: :::: : ::: : Limitation of Increment 2-11 Subsection 2-19. Use of Tax Increment .................................... 2-11 Subsection 2-20. Excess Increments ...................................... 2-12 Subsection 2-21. Requirements for Agreements with the Developer .............. 2-12 Subsection 2-22. Assessment Agreements ................................. 2-13 Subsection 2-23. Administration of the District ............................... 2-13 Subsection 2-24. Annual Disclosure Requirements ........................... 2-13 Subsection 2-25. Reasonable Expectations ................................. 2-13 Subsection 2-26. Other Limitations on the Use of Tax Increment ................. 2-13 Subsection 2-27. Summary .............................................. 2-14 APPENDIX A PROJECT DESCRIPTION ................................................ A-1 APPENDIX B MAPS OF DEVELOPMENT DISTRICT NO.4 AND THE DISTRICT ................ B-1 APPENDIX C DESCRIPTION OF PROPERTY TO BE INCLUDED IN THE DISTRICT ............. C-1 APPENDIX D ESTIMATED CASH FLOW FOR THE DISTRICT .............................. D-1 n U c~~~ • APPENDIX E MINNESOTA BUSINESS ASSISTANCE FORM ............................... E-1 APPENDIX F REDEVELOPMENT QUALIFICATIONS FOR THE DISTRICT .................... F-1 APPENDIX G BUT/FOR QUALIFICATIONS .............................................. G-1 U • ~ c~~~~ • SECTION ! -MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 4 Foreword The following text represents a Modification to the Development Program for Development District No. 4. This modification represents a continuation ofthe goals and objectives set forth in the Development Program for Development District No. 4. Generally, the substantive changes include the establishment of Tax Increment Financing District No. 4-14. For further information, a review of the Development Program for Development District No. 4, adopted in May of 1980, and modified on April 24, 1990, December 30, 1991, May 13, 1997, and June 29, 2004 is recommended. It is available from the City Administrator at the City of Hutchinson. Other relevant information is contained in the Tax Increment Financing Plans for the Tax ]ncrement Financing Districts located within Development District No. 4. U • Ciry of Hutchinson Modif cation to the Development Program for Development District No. 4 I-1 ~ (~~ SECTION Il -TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT N0.4-?4 Subsection 2-1. Foreword The City of Hutchinson (the "City"), staff and consultants have prepared the following information to expedite the establishment of Tax Increment Financing District No. 4-] 4 (the "District"), a redevelopment tax increment financing district, located in Development District No. 4. Subsection 2-2. Statutory Authority Within the City, there exists areas where public involvement is necessary to cause development or redevelopment to occur. To this end, the City has certain statutory powers pursuant to Minnesota Statutes ("MS'), Sections 469.124 to 469.134, inclusive, as amended, and MS., Sections 469.174 to 969.1799, inclusive, as amended (the "Tax Increment Financing Act" or "TIF Act"), to assist in financing public costs related to this project. This section contains the Tax Increment Financing Plan (the "TIF Plan") for the District. Other relevant information is contained in the Modification to the Development Program for Development District No. 4. Subsection 2-3. Statement of Objectives The District currently consists of three parcels of land and adjacent and internal rights-of--way. The District is being created to facilitate redevelopment of downtown Hutchinson. The proposed development, called Cornerstone Commons, will be a retail office building constructed on Main Street, replacing a vacant gas station, Please see Appendix A for further project information. Contracts for this project have not been entered into at the time of preparation of this TIF Plan, but development is likely to occur in the fall of 2005. This TIF Plan is expected to achieve many of the objectives outlined in the Development Program for Development District No. 4. The activities contemplated in the Modification to the Development Program and the TIF Plan do not preclude the undertaking of other qualified development or redevelopment activities. These activities are anticipated to occur over the life of Development District No. 4 and the District. Subsection 2-4. Development Program Overview 1. Property to be Acquired -Selected property located within the District may be acquired by the City and is further described in this TIF Plan. ' 2. Relocation -Relocation services, to the extent required by law, are available pursuant to M.S., Chapter 117 and other relevant state and federal laws. 3. Upon approval of a developer's plan relating to the project and completion ofthe necessary legal requirements, the City may sell to a developer selected properties that it may acquire within the District or may lease land or facilities to a developer. 4. The City may perform or provide for some or all necessary acquisition, construction, relocation, demolition, and required utilities and public street work within the District. • Ciry of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-14 ?-I ~`~ Subsection 2-5. Description of Property in the District and Property To Be Acquired The District encompasses all property and adjacent rights-of--way and abutting roadways identified by the parcels listed below. See the map in Appendix B for further information on the location of the District. Parcel Numbers 23-056-3000 23-056-2990 23-056-2980 The City may acquire any of the three parcelsl within the District, as listed above, including interior and adjacent street rights of way, Any properties identified for acquisition will be acquired by the City only in order to accomplish one or more of the following: storm sewer improvements; provide land for needed public streets, utilities and facilities; carry out land acquisition, site improvements, clearance and/or development to accomplish the uses and objectives set forth in this plan. The City may acquire property by gift, dedication, condemnation or direct purchase from willing sellers in order to achieve the objectives ofthis TIF Plan, Such acquisitions will be undertaken only when there is assurance of funding to finance the acquisition and related costs. Subsection 2-6. Classification of the District The City, in determining the need to create a tax increment financing district in accordance with MS., Sections 469.174 to 469.1799, as amended, inclusive, finds that the District, to be established, is a redevelopment district pursuant to MS., Section 469.174, Subd. 10(a)(I) as defined below: • (aJ "Redevelopment district"meansatypeoftaxincrementfinancingdistrictconsistingofaproject, or portions of a project, within which the authority finds by resolution that one or more of the following conditions, reasonably distributed throughout the district, exists: (I) parcels consisting af70percent of the area in the district are occupied by buildings, streets, utilities, paved or gravel parking lots or other similar structures and more than 50 percent of the buildings, not including outbuildings, are structuralty substandard to a degree requiring substantial renovation or clearance; (2) The property consists of vacant, unused, underused, inappropriately used, ar infrequently used rail yards, rail storage facitities or excessive or vacated railroad rights-of--way; (3) rankfacilhies, orproperrywhoseimmediatelyprevioususewasfortankfacilities,asdefrned in Section II SC, Subd. I5, if the tank facility: (i) have or had a capacity of mare than one million gallons; (ii) are located adjacent to rail facilities; or (iii) have been removed, orareunused, underused, inappropriately used or infrequently used; or (4) a qualifying disaster area, as defined in Subd. IOb. (b) For purposes ofthis subdivision, "structurally substandard" shall mean containing defects in structural elements or a combination ofdeficiencies inessential utilities and facilities, light and ventilation, fire protection including adequate egress, layout and condition ojinterior partitions, • Ciry of Hutchinson Tax Increment Financing Plan for Tax Increment Financing Disvict No. 4-14 2-2 l~`- 1 or similar factors, which defects or defrciencies are of sufficient total significance to justify substantial renovation or clearance. (c) A6uildingisnotstructurallysubstandardifitisincompliancewiththebuildingcodeapplicable to new buildings or could be modified to satisfy the building code at a cost of less than 15 percent of the cost of constructing a new structure of the same square footage and type on the site. The municipality may frnd that a building is not disqualifred as structurally substandard under the preceding sentence on the basis of reasonably available evidence, such as the size, type, and age ofthe building, the average cost ofplumbing, electrical, or structural repairs or other similar reliable evidence. The municipality may not make such a determination without an interior inspection of the property, but need not have an independent, expert appraisal prepared of the cost of repair and rehabilitation of the building. An interior inspection of the property is not required, if the municipalityftnds that (1J the municipality or authority is unable to gain access to the property after using its best efforts ro obtain permission from the party that awns or controls theproperty; and (2) the evidence otherwise supports a reasonable conclusion that [he building is structurally substandard. (d) A parcel is deemed to be occupied by a structurally substandard building for purposes of the finding under paragraph (a) if al! of the following conditions are met: (1) the parcel was occupied by a substandard building within three years of the filing of the request for certification of the parcel as parr of the district with the county auditor; (2) the substandard building was demolished or removed by the authority or the demolition or removal was financed by the authority or was done by a developer under a development • agreement with the authority; (3) the authority found by resolution before the demolition or removal that the parcel was occupied by a structurally substandard building and that after demolition and clearance the authority intended to include the parcel within a district; and (4) upon filing the request jot certification ofthe tax capacity of the parcef as part ofa district, the authority notifies the county auditor that the original tax capacity ofthe parcel must be adjusted as provided by § 469.177, subdivision 1, paragraph (~. (e) For purposes of this subdivision, a parcel is not occupied by buildings, streets, utilities, paved or gravel parking lots or other similar structures unless I S percent of the area of the parcel contains buildings, streets, utilities, paved or grave! parking lots or other similar structures. (n For districts consisting of two or more noncontiguous areas, each area must qualify as a redevelopment district under paragraph (a) to be included in the district, and the entire area of the district must satisfy paragraph (a). In meeting the statutory criteria the City relies on the following facts and findings: • The District consists of three parcels. • An inventory shows that parcels consisting of more than 70 percent of the area in the District are occupied by buildings, streets, utilities, paved or gravel parking lots or other similar structures. • An inspection ofthe buildings located within the District finds that more than 50 percent ofthe buildings are structurally substandard as defined in the T1F Act. (See Appendix F). City of Hutchinson Tax Increment Financing Plan for Taz Increment Financing District No. 4-14 23 `(-+ `J Pursuant to MS., Sections 469.176 Subd. 7, the District does not contain any parcel or part of a parcel that qualified under the provisions ofM.S., Sections 273.111 or 273.112 or Chapter 473H for taxes payable in any of the five calendar years before the filing of the request for certification of the District. Subsection 2-7. Duration of the District Pursuant to M.S., Section 469.175, Subd. 1, and Section 469,176, Subd. 1, the duration of the District must be indicated within the TIF Plan. Pursuant to MS., Section 469.176, Subd. 1 b, the duration of the District will be 25 years after receipt of the first increment by the City (a total of 26 years oftax increment). The date of receipt by the City of the first tax increment is expected to be 2008. Thus, it is estimated that the District, including any modifications of the TIF Plan for subsequent phases or other changes, would terminate after 2033, or when the TIF Plan is satisfied. If increment is received in 2007, the term of the District will be 2032. The City reserves the right to decertify the District prior to the legally required date. Subsection 2-8. Original Tax Capacity, Tax Rate and Estimated Captured Net Tax Capacity Value/Increment and Notification of Prior Planned Improvements Pursuant to M.S., Section 469.174, Subd. 7 and M S, Section 469.177, Subd. I ,the Original Net Tax Capacity (ONTC) as certified for the District will be based on the market values placed on the property by the assessor in 2005 for taxes payable 2006. Pursuant to MS, Section 469.177, Subds. 1 and 2, the County Auditor shall certify in each year (beginning in the payment year 2008) the amount by which the original value has increased or decreased as a result of: 1. Change in tax exempt status of property; 2. Reduction or enlargement of the geographic boundaries of the district; 3. Change due to adjustments, negotiated or court-ordered abatements; 4. Change in the use of the property and classification; 5. Change in state law governing class rates; or 6. Change in previously issued building permits. In any year in which the cuttent Net Tax Capacity (NTC) value of the District declines below the ONTC, no value will be captured and no tax increment will be payable to the City. The original local tax rate for the District will be the local tax rate for taxes payable 2006, assuming the request for certification is made before June 30, 2006. The ONTC and the Original Local Tax Rate for the District appear in the table on the following page. Pursuant to M.S., Section 469.174 Subd. 4 and M.S., Section 469.177, Subd. 1, 2, and 4, the estimated Captured Net Tax Capacity (CTC) of the District, within Development District No. 4, upon completion of the project, will annually approximate tax increment revenues as shown in the table on the following page. The City requests 100 percent of the available increase in tax capacity for repayment of its obligations and current expenditures, beginning ihthe tax year payable 2008. The Project Tax Capacity (PTC) listed is an estimate of values when the project is completed. Ciry of Hutchinson Tax Increment Financing Plan for Tex Increment Financing District No. 4-14 ?-4 WC~ • Project Estimated Tax Capacity upon Completion (PTC) $34,250 Original Estimated Net Tax Capacity (ONTC) $3,710 Estimated Captured Tax Capacity (CTC) $30,540 Original Local Tax Rate 1.37667 Pay 2005 Estimated Annual Tax Increment (CTC x Local Tax Rate) $42,044 Percent Retained by the City 100% Pursuant to M.S., Section 469.177, Subd. 4, the City shall, after a due and diligent search, accompany its request for certification to the County Auditor or its notice of the District enlargement pursuant to M.S., Section 469.175, Subd. 4, with a listing of all properties within the District or azea of enlargement for which building permits have been issued during the eighteen (18) months immediately preceding approval of the TIF Plan by the municipality pursuant to M S., Section 469.175, Subd. 3. The County Auditor shall increase the original net tax capacity of the District by the net tax capacity of improvements for which a building permit was issued. The City has reviewed the area to be included in the District and found no parcels for which building permits have been issued during the 18 months immediately preceding approval ofthe TIF Plan by the City. Subsection 2-9. Sources of Revenue/Bonded Indebtedness Public improvement costs, acquisition, relocation, utilities, parking facilities, streets and sidewalks, and site prepazation costs and other costs outlined in the Uses ofFunds will be financed primarily through the annual collection of tax increments. The City reserves the right to use other sources of revenue legally applicable to the City and the TIF Plan, including, but not limited to, special assessments, genera] property taxes, state aid for road maintenance and construction, proceeds from the sale of land, other contributions from the developer and investment income, to pay for the estimated public costs. The City reserves the right to incur bonded indebtedness or other indebtedness as a result of the TIF Plan. As presently proposed, the project will be financed by apay-as-you-go note. Additional indebtedness may be required to finance other authorized activities. The total principal amount of bonded indebtedness, including a general obligation (GO) TIF bond, or other indebtedness related to the use of tax increment financing will not exceed $750,000 without a modification to the T1F Plan pursuant to applicable statutory requirements. It is estimated that $250,000 in interfund loans will be financed with tax increment revenues. It is estimated that $1,000,000 in bonded indebtedness will be financed with tax increment revenues. This provision does not obligate the City to incur debt. The City will issue bonds or incur other debt only upon the determination that such action is in the best interest of the City. The City may also finance the ac- tivities to be undertaken pursuant to the TIF Plan through loans from funds of the City or to reimburse the developer on a "pay-as-you-go" basis for eligible costs paid for by a developer. The estimated sources of funds for the District are contained in the table on the following page. Ciry of Hutchinson Tax Increment Financing Plan for Tax Incremern Financing District No. 4-14 2-5 c~L~ SOURCES OF FUNDS TOTAL Tax Increment $1,068,267 Interest Income $100,000 PROJECT REVENUES $1,168,267 Interfund Loans Bond Principal Subsection 2-10. Uses of Funds $250,000 $750,000 Currently under consideration for the District is a proposal to facilitate the Cornerstone Commons project which will be a newly constructed building containing approximately 12,000 sq. ft. ofretail and office space in downtown Hutchinson. The City has determined that it will be necessary to provide assistance to the project for certain costs. The City has studied the feasibilityofthedevelopmentorredevelopmentofproper[y in and around the District. To facilitate the establishment and development or redevelopment of the District, this TIF Plan authorizes the use of tax increment financing to pay for the cost of certain eligible expenses. The estimate of public costs and uses of funds associated with the District is outlined in the following table. USES OF FUNDS TOTAL LandBuilding Acquisition $275,000 Site Improvements/PreparationBnvironmental $153,440 • Public Utilities $5,000 Relocation $5,000 Streets and Sidewalks $50,000 Interest $573,000 Administrative Costs (up to ]0%) $106,827 PROJECT COSTS TOTAL $1,168 2~ Interfund Loans $250,000 Bond Principal $750,000 The above budget is organized according to the Office of State Auditor (OSA) reporting forms It is estimated that the cost of improvements, including administrative expenses which will be paid or financed with tax increments, will equal $2,168,267 as is presented in the budget above. Estimated costs associated with the District are subject to change among categories without a modification to this TIF Plan. The cost of all activities to be considered for tax increment financing will not exceed, without formal modification, the budget above pursuant to the applicable statutory requirements. Pursuant to M.S., Secrron 469.1763, Subd. 1, no more than 25 percent of the tax increment paid by property within the District will be spent on activities related to development or redevelopment outside of the District but within [he boundaries of Development District No. 4, (including administrative costs, which are considered to be • Ciry of Hutchinson Tax lncremem Financing Plan for Tax Increment Financing District No. 4-14 Z-6 ~c~) • spent outside of the District) subject to the limitations az described in this TIF Plan Subsection 2-71. Business Subsidies Pursuant to M.S. Sections I115J.993, Subd. 3, the following forms of financial assistance are not considered a business subsidy: (1) A business subsidy of less than $25,000; (2) Assistance that is generally available to all businesses or to a general class of similar businesses, such az a line of business, size, location, or similar general criteria; (3) Public improvements to buildings or lands owned by the state or local government that serve a public purpose and do not principally benefit a single business or defined group of businesses at the time the improvements are made; (4) Redevelopment property polluted by contaminants az defined in M.S., Section 116J552, Subd. 3; (5) Assistance provided for the sole purpose of renovating old or decaying building stock or bringing it up to code and assistance provided for designated historic preservation districts, provided that the assistance is equal to or less than 50% of the total cost; (6) Assistance to providejob readiness and training services if the sole purpose of the assistance is to provide those services; (7) Assistance for housing; (8) Assistance for pollution control or abatement, including assistance for a tax increment financing hazardous substance subdistrict az defined under M.S., Section 969.!74, Subd. 23; (9) Assistance for energy conservation; (10) Tax reductions resulting from conformity with federal tax law; (1 I) Workers' compensation and unemployment compensation; (12) Benefits derived from regulation; • (13) Indirect benefits derived from assistance to educational institutions; (14) Funds from bonds allocated under chapter 474A, bonds issued to refund outstanding bonds, and bonds issued for the benefit of an organization described in section 501 (c) (3) of the Internal Revenue Code of 1986, az amended through December 31, 1999; (15) Assistance for a collaboration between a Minnesota higher education institution and a business; (16) Assistance for a tax increment financing soils condition district as defined under MS, Section 469.174, Subd. 19; (17) Redevelopment when the recipient's investment in the purchase of the site and in site preparation is 70 percent or more of the assessor's curent year's estimated market value; (18) General changes in tax increment financing law and other general tax law changes of a principally technical nature. (19) Federal assistance until the assistance haz been repaid to, and reinvested by, the state or local govemment agency; (20) Funds from dock and wharf bonds issued by a seaway port authority; (21) Business loans and loan guarantees of $75,000 or less; and (22) Federal loan funds provided through the United States Department of Commerce, Economic Development Administration. The City will comply with MS., Section 116J993 to 116J.995 to the extent the tax increment assistance under th is TIF Plan does not fall under any of the above exemptions. The project is expected to be exempt under cl ause (17). • City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-14 2-7 c~L~ . Subsection 2-12. County Road Costs Pursuant to MS., Section 469.175, Subd. 1 a, the county board may require the City to pay for all or part of the cost of county road improvements if the proposed development to be assisted by tax increment will, in the judgement of the county, substantially increase the use of county roads requiring construction of road improvements or other road costs and if the road improvements are not scheduled within the next five years under a capital improvement plan or within five years under another county plan. If the county elects to use increments to improve county roads, it must notify the City within forty-five days of receipt of this TIF Plan. In the opinion of the City and consultants, the proposed development outlined in this TIF Plan will have little or no impact upon county roads, therefore the TIF Plan was not forwarded to the county 45 days prior to the public hearing. The City is aware that the county could claim that tax increment should be used for county roads, even after the public hearing. Subsection 2-13. Estimated Impact on Other Taxing Jurisdictions ' The estimated impact on other taxingjurisdictions assumes that the redevelopment contemplated by the T1F Plan would occur without the creation of the District. However, the City has determined that such development or redevelopment would not occur "but for" tax increment financing and that, therefore, the fiscal impact on other taxing jurisdictions is $0. The estimated fiscal impact of the District would be as follows if the "but for" test was not met: 1MPACT ON TAX BASE 2004/2005 Estimated Captured • Total Net Tax Capacity (CTC) Percent of CTC Tax Caaaciri Upon Completion to Entitv Total McLeod County 23,274,572 30,540 0.1312% City of Hutchinson 8,488,378 30,540 0.3598% Hutchinson ISD No. 423 11,597,024 30,540 0.2633% IMPACT ON TAX RATES Estimated Percent Potential 200412005 of Total CTC Taxes Extension Rates McLeod County 0.625610 45.44°/a 30,540 19,106 City of Hutchinson 0.593630 43.12% 30,540 18,129 Hutchinson ISD No. 423 0.143490 ]0.42% 30,540 4,382 Other (HRA & Region 6E) 0.013940 1.01% 30.540 426 Total 1.376670 100.00% 42>044 The estimates listed above display the captured tax capacity when all construction is completed. The tax rate used for calculations is the actua12004/Pay 2005 rate. The total net capacity for the entities listed above are based on actual Pay 2005 figures. The District will be certified under the actual 2005/Pay 2006 rates, which were unavailable at the time this T1F Plan was prepared. • Ciry of Hutchinson Tax lncrement Financing Plen for Tax Increment Financing District No. 4-14 ?-g ~~4~ • Subsection 2-14. Supporting Documentation Pursuant to M S. Section 469.175 Subd 1, clause 7 the TIF Plan must contain identification and description of studies and analyses used to make the determination set forth in M.S. Section 469.175 Subd 3, clause (2) and the findings aze required in the resolution approving the TIF district. Following is a list of reports and studies on file at the City that support the Authority's findings: • Phase I Environmental completed for sites • A Revitalization Master Plan for Downtown Hutchinson prepazed by Hoisington Koegler Group, Inc., Mazch 25, 2003 Subsection 2-15. Definition of Tax Increment Revenues Pursuant to M S., Section 469.174, Subd. 25, tax increment revenues derived from a tax increment financing district include all of the following potential revenue sources: 1. Taxes paid by the captured net tax capacity, but excluding any excess taxes, as computed under M.S., Seaton 469.177; 2. The proceeds from the sale or lease of property, tangible or intangible, to the extent the property was purchased by the Authority with tax increments; 3. Principal and interest received on loans or other advances made by the Authority with tax increments; 4. Interest or other investment earnings on or from tax increments; 5. Repayments or return of tax increments made to the Authority under agreements for districts for which the request for certification was made after August 1, 1993; and 6. The market value homestead credit paid to the Authority under MS., Section 273.1384. • Subsection 2-16. Modifications to the District In accordance with MS., Section 469.175, Subd. 9, any: 1. Reduction or enlargement ofthe geographic area of Development District No.4 orthe District, ifthe reduction does not meet the requirements of MS., Section 469.175, Subd. 4(eJ; 2. Increase in amount of bonded indebtedness to be incurred; 3. A determinafion to capitalize interest on debt if that determination was not a part of the original TIF Plan, or to increase or decrease the amount of interest on the debt to be capitalized; 4. Increase in the portion of the captured net tax capacity to be retained by the City; 5. Increase in the estimate ofthe cost of the project, including administrative expenses, that will be paid or financed with tax increment from the District; or 6. Designation of additional property to be acquired by the City, shall be approved upon the notice and after the discussion, public hearing and findings required for approval of the original TIF Plan. Pursuant to MS. Section 469.175 Subd. 4(n, the geographic area ofthe District may be reduced, but shall not be enlarged after five years following the date of certification of the original net tax capacity by the county auditor. If a redevelopment district is enlarged, the reasons and supporting facts for the determination that the addition to the district meets the criteria of MS., Section 469.174, Subd. 10, paragraph (a), clauses (1) to (5), must be documented in writing and retained. The requirements of this paragraph do not apply if (1) the only modification is elimination of parcel(s) from Development District No. 4 or the District and (2) (A) the current net tax capacity of the parcel(s) eliminated from the District equals or exceeds the net tax capacity • Ciry of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-14 ?-9 ~(~ • of those pazcel(s) in the District's original net tax capacity or (B) the City agrees that, notwithstanding M S., Section 469.177, Subd. 1, the original net tax capacity will be reduced by no more than the current net tax capacity of the parcel(s) eliminated from the District. The City must notify the County Auditor of any modification that reduces or enlarges the geographic area of Development District No. 4 or the District. Modifications to the District in the form of a budget modification or an expansion of the boundazies will be recorded in the TIF Plan. Subsection 2-77. Administrative Expenses In accordance with MS., Section 469.179, Subd. 14, administrative expenses means all expenditures of the City, other than: 1. Amounts paid for the purchase of land; 2. Amounts paid to contractors or others providing materials and services, including architectural and engineering services, directly connected with the physical development of the real property in the project; 3. Relocation benefits paid to or services provided for persons residing or businesses located in the project; or 4. Amounts used to pay principal or interest on, fund a reserve for, or sell at a discount bonds issued pursuant to MS., Section 469.178; or 5. Amounts used to pay other financial obligations to the extent those obligations were used to finance casts described in clauses (1) to (3). For districts for which the request for certification were made before August 1, 1979, or after June 30, 1982, • administrative expenses also include amounts paid for services provided by bond counsel, fiscal consultants, and planning or economic development consultants. Pursuant to MS., Section 469.176, Subd. 3, tax increment may be used to pay any authorized and documented administrative expenses for the District up to but not to exceed ] 0 percent of the total estimated tax increment expenditures authorized by the TIF Plan or the total tax increments, as defined by MS., Section 469.174, Subd. 25, clause (I), from the District, whichever is less, Pursuant to M.S., Section 469.176, Subd. 4h, tax increments may be used to pay for the County's actual administrative expenses incurred in connection with the District. The county may require payment ofthose expenses by February 15 of the year following the yeaz the expenses were incurred. Pursuant to MS., Section 469. 177, Subd. I1, the County Treasurer shall deduct an amount (currently .36 percent) of any increment distributed to the City and the County Treasurer shall pay the amount deducted to the State Treasurer for deposit in the state genera] fund to be appropriated to the State Auditor for the cost of financial reporting of tax increment financing information and the cost of examining and auditing authorities' use of tax increment financing. This amount may be adjusted annually by the Commissioner of Revenue. • Cirv of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-14 ?-Io ~c~) • Subsection 2-18. Limitation of Increment The tax increment pledged to the payment of bonds and interest thereon may be discharged and the District may be terminated if sufficient funds have been irrevocably deposited in the debt service fund or other escrow account held in trust for all outstanding bonds to provide for the payment of the bonds at maturity or redemption date. Pursuant to M.S., Section 469.176, Subd. 6: if, after four years from the date of certifrcation of the original net tax capacity of the tax increment frnancing district pursuant to M.S., Section 469.177, no demolition, rehabilitation or renovation of property or other site preparation, including qualifed improvement of a street adjacent to a parcel but not installation of utility service including sewer or water systems, has been commenced on a parcel located within a tax incrementfinancing district by the authority or by the owner ofthe parcel in accordance with the tax increment financing plan, no additional tax increment may be taken from that parcel and the original net tax capacity of that parcel shall be excluded from the original net tax capacity of the tax increment financing district. If the authority or the owner of the parcel subsequently commences demolition, rehabilitation or renovation or other site preparation on that parcel including qualified improvement of a street adjacent to that parcel, in accordance with the tax increment financing plan, the authority shall certrfy to the county auditor that the activity has commenced and the county auditor shall certify the net tax capacity rhereofas most recently certified by the commissioner of revenue and add it to the original net tax capacity of the tax increment frnancing district. The county auditor must enforce the provisions of this subdivision. The authority must submit to the county auditor evidence that the required activity has taken place for each parcel in the district. The evidence for a parcel must be submitted by February 1 of the f+fth year following the year in which the parcel was certified as included in [he district. For purposes of this subdivision, . qualified improvements of a street are limited to (1) construction or opening oja new street, (2) relocation ofa street, and (3) substantial reconstruction or rebuilding of an existing street. The City or a property owner must improve parcels within the District by approximately August, 2009 and report such actions to the County Auditor. Subsection 2-19. Use of Tax Increment The City hereby determines that it will use 100 percent of the captured net tax capacity of taxable property located in the District for the following purposes: ]. To pay the principal of and interest on bonds issued to finance a project; 2. To finance, or otherwise pay the capital and administration costs of Development District No. 4 pursuant to the MS., Sections 469.124 to 469.134; 3. To pay for project costs as identified in the budget set forth in the TIF Plan; 4. To finance, or otherwise pay for other purposes as provided in M.S., Section 469.176, Subd. 4; 5. To pay principal and interest on any loans, advances or other payments made to or on behalf of the City or for the benefit of Development District No. 4 by a developer; 6. To finance or otherwise pay premiums and other costs for insurance or other security guaranteeing the payment when due of principal of and interest on bonds pursuant to the TIF Plan or pursuant to MS., Chapter 462C. M.S., Sections 469.152 through 469.165, and/or MS., Sections 469.178; and • City of Hmchinson Tax Increment Financing Plan for Tax Increment Financing DisMcl No. 4-14 ?-11 ~~~~ • 7. To accumulate or maintain a reserve securing the payment when due of the principal and interest on the tax increment bonds or bonds issued pursuant to M.S, Chapter 462C, M.S., Sections 469.152 through 469.165, and/or M S., Sections 469.178. These revenues shall not be used to circumvent any levy limitations applicable to the City nor for other purposes prohibited by MS., Section 469.776, Subd. 4. Tax increments generated in the District will be paid by McLeod County to the City for the Tax Increment Fund of said District. The City will pay to the developer(s) annually an amount not to exceed an amount as specified in a developer's agreement to reimburse the costs of land acquisition, public improvements, demolition and relocation, site preparation, and administration. Remaining increment funds will be used for City administration (up to ]0 percent) and the costs of public improvement activities outside the District. Subsection 2-20. Excess Increments Excess increments, as defined in MS., Section 469.176, Subd. 2, shall be used only to do one or more of the following: 1. Prepay any outstanding bonds; 2. Dischazge the pledge of tax increment for any outstanding bonds; 3. Pay into an escrow account dedicated to the payment of any outstanding bonds; or 4. Return the excess to the County Auditor for redistribution to the respective taxing jurisdictions in proportion to their local tax rates. The City must spend or return the excess increments under paragraph (c) within nine months after the end of the year. In addition, the City may, subject to the limitations set forth herein, choose to modify the TIF • Plan in order to finance additional public costs in Development District No. 4 or the District. Subsection 2-21. Requirements for Agreements with the Developer The City will review any proposal for private development to determine its conformance with the Development Program and with applicable municipal ordinances and codes. To facilitate this effort, the following documents may be requested for review and approval: site plan, construction, mechanical, and electrical system drawings, landscaping plan, grading and storm drainage plan, signage system plan, and any other drawings or narrative deemed necessary by the City to demonstrate the conformance ofthe development with City plans and ordinances. The City may also use the Agreements to address other issues related to the development. Pursuant to M.S., Section 469.176, Subd. 5, no more than 25 percent, by acreage, of the property to be acquired in the District as set forth in the TIF Plan shall at any time be owned by the City as a result of acquisition with the proceeds of bonds issued pursuant to M S., Section 469.178 to which tax increments from property acquired is pledged, unless prior to acquisition in excess of 25 percent of the acreage, the City concluded an agreement for the development or redevelopment of the property acquired and which provides recourse for the City should the development or redevelopment not be completed. • Ciry of Hutchinson Tax lncrement Financing Plan for Tax lncrement Financing District No. 4-14 2-1 ~ ~~~ • Subsection 2-22. Assessment Agreements Pursuant to M.S., Section 469.177, Subd. 8, the City may enter into a written assessment agreement in recordable form with the developer of property within the District which establishes a minimum market value of the land and completed improvements for the duration of the District. The assessment agreement shall be presented to the County Assessor who shall review the plans and specifications for the improvements to be constructed, review the market value previously assigned to the land upon which the improvements are to be constructed and, so long as the minimum mazket value contained in the assessment agreement appeazs, in the judgment of the assessor, to be a reasonable estimate, the County Assessor shall also certify the minimum market value agreement. Subsection 2-23. Administration of the District Administration of the District will be handled by the City Administrator. Subsection 2-24. Annual Disclosure Requirements Pursuant to M.S., Section 469.175, Subd. 5, 6, and 6b the City must undertake financial reporting for all tax increment financing districts to the Office of the State Auditor, County Board, County Auditor and School Board on or before August 1 of each yeaz. M.S., Section 469.175, Subd. 5 also provides that an annual statement shall be published in a newspaper of general circulation in the City on or before August 15. If the City fails to make a disclosure or submit a report containing the information required by M.S, Section 469.175 Subd. 5 and Subd. 6, the OSA will direct the County Auditor to withhold the distribution of tax increment from the District. • Subsection 2-25. Reasonable Expectations As required by the TIF Act, in establishing the District, the determination has been made that the anticipated development would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and that the increased market value ofthe site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the District permitted by the TIF Plan. In making said determination, reliance has been placed upon written representation made by the developer to such effects and upon City staff awazeness of the feasibility of developing the project site. A comparative analysis of estimated market values both with and without establishment ofthe District and the use of tax increments has been performed as described above. Such analysis is included with the cashflow in Appendix D, and indicates that the increase in estimated market value of the proposed development (less the indicated subtractions) exceeds the estimated market value of the site absent the establishment of the District and the use of tax increments. Subsection 2-26.Other Limitations on the Use of Tax Increment General Limitations. All revenue derived from tax increment shall be used in accordance with the TIF Plan. The revenues shall be used To finance, or otherwise pay the capital and administration costs of Development District No. 4 pursuant to the M.S., Sections 469.124 to 469.139. Tax increments may not be used to circumvent existing levy limit law. No tax increment may be used for the acquisition, construction, renovation, operation, or maintenance of a building to be used primarily and regularly for conducting the business of a municipality, county, school district, or any other local unit of government • City of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-14 2-13 ~c4~ r~ L • or the state or federal government. This provision does not prohibit the use of revenues derived from tax increments for the construction or renovation of a parking structure. Pooline Limitations. At least 75 percent of tax increments from the District must be expended on activities in the District or to pay bonds, to the extent that the proceeds of the bonds were used to finance activities within said district or to pay, or secure payment of, debt service on credit enhanced bonds. Not more than 25 percent of said tax increments maybe expended, through a development fund or otherwise, on activities outside of the District except to pay, or secure payment of, debt service on credit enhanced bonds. For purposes of applying this restriction, all administrative expenses must be treated as if they were solely for activities outside of the District. Five Year Limitation on Commitment of Tax Increments. Tax increments derived from the District shall be deemed to have satisfied the 75 percent test set forth in paragraph (2) above only if the five year rule set forth in M.S., Section 469.1763, Subd. 3, has been satisfied; and beginning with the sixth yeaz following certification of the District, 75 percent of said tax increments that remain after expenditures permitted under said five year rule must be used only to pay previously committed expenditures or credit enhanced bonds as more fully set forth in M.S, Section 969.1763, Subd. 5. 4. Redevelopment District. At least 90 percent of the revenues derived from tax increment from a redevelopment district must be used to finance the cost of correcting conditions that allow designation ofredevelopmentandrenewa]andrenovationdistrictsunderM.S.,Section969.176Subd.4j. These costs include, but are not limited to, acquiring properties containing structurally substandard buildings or improvements orhazardous substances, pollution, or contaminants, acquiring adjacent pazcels necessary to provide a site of sufficient size to permit development, demolition and rehabilitation of structures, clearing ofthe land, the removal of hazardous substances or remediation necessary for development of the land, and installation of utilities, roads, sidewalks, and parking facilities for the site. The allocated administrative expenses oflhe City, including the cost ofpreparation ofthe development action response plan, may be included in the qualifying costs. Subsection 2-27. Summary The City is establishing the District to preserve and enhance the tax base, redevelop substandazd azeas, redevelop contaminated sites, and provide employment opportunities in the City. The T1F Plan for the District was prepared by Ehlers & Associates, Inc., 3060 Centre Pointe Drive, Roseville, Minnesota 55113, telephone (651) 697-8500. Ciry of Hutchinson Tax Increment Financing Plan for Tax Increment Financing District No. 4-14 2-14 ~~~~ APPENDIX A PROJECT DESCRIPTION The District consist of3 parcels of land and adjacent and intemalrights-of--way. The District is being created to facilitate the redevelopment of the historic downtown area with atwo-story commercial building containing approximately 12,000 sq. ft. of office and retail space. Contracts have not been entered into at the time of prepazation of this TIF Plan, but development is expected to occur in the fall of 2D05. The site of the proposed building is on the corner of Main Street and I"Avenue in the heart of Hutchinson's downtown. The comer is currently occupied by a gas station that was vacated over ten years ago. The tanks and surrounding soils were removed, but residua] contamination still exists on the site. The developer is putting together an environmental remediation plan that will include additional soil remediation and the installation of a vapor barrier below the building. A second obsolete and substandazd building, currently occupied by a pawn shop, will be acquired and demolished to accommodate the proposed development. ' The EDA and City are authorized under the TIF Plan to issue pay-as-you-go debt to enable redevelopment to occur. The actual amount of debt will depend on the final development budget for the project, which will be scrutinized by the EDA staff, and consultants for the demonstrated amount of gap created by eligible costs of acquisition, demolition, relocation, environmental remediation, and site improvements. • • APPENDIX A-1 ~c~) • APPENDIX B MAPS OF DEVELOPMENT DISTRICT N0.4 AND THE DISTRICT • • APPENDIX B"~ ~c~~ i ~I )[. __ DISTRICT #4-14 i ~~ ~ ii i F ;. ... _....~ ,.~ ~, - ._.. ~ -- ,, . ~~ i ~ l ~ ~~ ~ ,.; ~ I ~_ , ~ .. if I ~;._..... __ ~'` ~ _~ i ~'• I r ~ . ~ ~_ ~ ~ ~ I l , l ' ~ , ~ ` 4 {i ~ ,~~ ~ ~ . it -: + t a ~ '' ' . % I~ ...._~ id - ...f : i . , Y i~ ~ t ~ ~ 'i ~ ~ ~C ,, a~ _, , .. - - - t r ~ ~ -~ I ~ ~ .. I - - i . 4 ~ ~ ~i:r -- ~ ~ . ,~ ~ ~ ~i ,; ~ ~,~ .I ~ , l ~~ ',~ ~ , ~ ~~ ~' i Ili ~. - - r _ : ~. , ~ , ; I, I .. ,.. , ,, , , ~l~ i ~. ~ ~ ,, ~ ~~ ., ~~ ~, s ~~ 0 I. . li I Q Development District No. 4 APPENDIX C DESCRIPTION OF PROPERTY TO BE INCLUDED IN THE DISTRICT The District encompasses all property and adjacent rights-of--way and abutting roadways identified by the parcels listed below. Parcel Numbers Address Leeal Descriution Lot Five (5) and the south Nine Feel (9~ of Lot Four (4), Block 23-056-3000 104 MainSUeetNorth Forty-Two(42),NorthOne-half(N'/:)oftheCityofHutchinson, McLeod County, MN North Twenty-four feet (24') of South Half (S'/:) of Lot Four (4), 23-056-2990 116 Main Street North Block Foray-Two (42), North Half (N %:), City of Hutchinson, McLeod County, MN 23-056-2980 I ] 8 Main Street North The North Half (N 'F,) of Lot Four (4) of Block forty-Two (42), North Half (N%:) in the City of Hutchinson, McLeod County, MN APPENDIX C-I c~~~~ • APPENDIX D ESTIMATED CASH FLOW FOR THE DISTRICT • • APPENDIX D"~ ~~~~ 571272606 paq~e 1 ~ot 5 °N 1 t:. FWf~4 C9T"^f OIF NUTCHIN~pE+Y Camer9tona Gomrnane ~^-develapmanf 11 „804 gt{/WC COtmmdr[ial bui8ding ~._ _____. _. _._.r.~,.. _._._.. ...._... ..... BAS[.'JA LUL INhbhMAT04 t9 Class Raga A1taa PPOpetty &.and 8ullttlnq Taial Class 4Drlglnal Afrar 4C'nVara&an Data Mao16 PICT GWnar Market Yalua Ma r.et'Valaa Marlkat Value Rafe Taa CapaaRl P' Converr:t l••rak,aGft'„r,,, ~ ,ca atria 9 23.458.3446 ~~ .~ Rtx ~-_- _-~' 133.304 7.5"R6.-2.4% 2,'404 1.5%-2,496 2.404 2445 2'. 23AS6.2'58k 4uade 72,64[1 9.5%-2.6% 1,08'5 t.5%^2.69E 9,488 2445 3 23.056.2584 Cluada 49.,940 t.5%•2.4% 621 1.5°l~-2.6}96 621 -. 2405 Tatal!5 26'7,944 3,716 3,710 ._._.__.__-...-~ __.___.~ -.v..... __...~ ..__.- _.__-.___-_. ' FR. b.pECT 9lVFLyRMATlO'i T ntal Mar+cr Value Ta~xsa. Per Ta9at Market Glase Naw Yaa: Gate Phase _Uss__ 5q. Fi.ll!•••n its Sq. FL7ll'nits . Ft.''JnHS Texas Valwa _ Raia Tax Capa0lty Cansfruagad PaYaolr J l ~ . Rela6ldptYOCe ~ 11,804 197.46 55.79 ~-m~ r55,202 1.746,D64 ~ 1.5Yo-2.6% 79,Zbu 24uc 2G45 'I Nnte 9. Tax estimates era bawd upOrv merest ualue, constru0kion casts art~d 9axas par sgtii.. 2. TIF run eaaumss t 00°o a9 thr truicdina la cc natnrslad lxy January 2„ 2a6F tar payabVa a405 TAX CALCl7LATiCkHS Total LoOal Fiscal Laaak Fisc.ak State-wlrYe LOtag Fiscal Stata^-Wirla Market LY'ae Tax Tax blsparHl~as. "tax 4NSparMies Property 'fax.as Oisparltlas Property Value TotaY Ca nclt Caas-~ Tax Ca-aO Rats Taa Rata Tax hate Texas Ta7aa9 Texas Taxes ~ 9?tYiae 39,250 39,250 4 1.77657 4.6G446 _ 6-5t 12i 971~8t 0 17,x'0§ 9,822 58,2$2~ 0 0 FCYTAL:- ~mm.3-0,280 ~.M ..m..~.~.-19,260_...ITm ..~.mm~m.-m tY--_mm~- _ -. 1.97fi67 W.04W40 O.b11'.1 9k,Y~.51 CM 17,609 3,622 88,252 1.WrHtitah~tnsan does not pay' FiscaW O'ispari'11ss 9rrnnaratl tsy FnYaNa ~' W"~iR 44 ._.. Sshnul 6vmrlct a27 _ _T;I.F, C,p9H F1=CNN A55UMPT70N3 .,, LL Distrlat Proposetl TIF 9'a~14 caunty tAlalnct A Inflait0n Fp.ala - F'+c.f Years 0;040owo Pay-Aa+KOU«Ga Inla: eat Fiats'. 7:Cr600~"fe NOta kseutltl Dale fPresSnf. Vague dafe~: 9Y7-AUq~°p'6 Local Tax Rate • Froxan 137.8674'K Pay 2045 Flsaat DI'3paralaa EtaG110n fA ^ pnaida Or F3 911h56(ta~ R7' A Year 67istaicl Was oa rlifia~q Pay 2e08 Assumes Firsi Tax Inaramena 5or t7istriel~. 2005 Yaat Otskxicl Was MotliBad RifA Ctsva4opmenl. Vgcaietl in madlaao area No Assumes Fimsl Fax 1-noraru~ank For 67av 2407 Years OT Tax Inc[emant 2fi Assvm'a9 Lbsk YeSr O+Ta~x IncrOrae n@ 9892. Fiscal 611SOadttas Raain 0.6804°6 Fscal p~par5las MBkrO Nuida lax Ra~t~e 0.4804"Yn Laval Tax Rata . Gwrrant 19F.8670~X- Pay 2P'a5 Stara Watle Patspedy Tax Rala (tiJSed Pore tlalal taxes' 61.121 BX~ Pay 2465 Marast Valut Tax Rats Qwsad for coral taxssj 0.208955E Pey 240s 'GtlmmeFClal Induslraa~R'Class Rake 1.5%-2.4% Pay 2445 Flrsl 156,0'64 t.54% Civer 154.444 2.46% Fcrral Cass ~nta 1.25% r''aY 2045 Raa,u~.drldl Clas' - F~•st 5560,004 1.66% n; arS°sO.OpP 1.26% i._ ... - __. _.. .__ _ _ smunOrataraa commune flit caxn6aw Eriaa24gE :RYSDO uEC.9NY4XM4 Wf1f., iJkh. Yr. .. ~.__ ] dace' PP4faet Tax 7'ax ,-Capae~___ Oapac - X41®il p~cyuvlawa ftaduamdn , EN~,E!~S CdTY i7P Y4d1TIGN#IWS{7d+N Carernv^z(one Gammons fa C Wrir•, m n9 7Aa Ih1CREMEM7 CA3H FLb4V Gapiwfed $Errtil-AnhWad StatS Tax ts•¢osa~Tax Awr3ftor 1;a ac.. Inoaema0t 0.18'1 ..""""~ _ Sous i-A ictual Ssm~9•J,nnu4~9~tR.1MENT Ufr7E }l ttiilifl. at H~a4 'Cax Prasen9 PEPI~]BX EM'd79~MG 9444";4 Incwem9snt 'walua 'dos. ith Pa®ezoi7 ........ Nix,. present Vadua f0a~te - 2-1-48 4 q 4Y2.41 2486 7;710 3,716 4 4 0 4 0 b 4 0.4 q8-01 2006 . p.p 48.4A 2408 9.7N4 3,714 0 4 0 0 p~ 4 4 tlA p2«41 1pp7 4 4 4~?-01 2467 3.714 7,714 4 4 4' 0 0 0 0 4.0 09-09 2007 . 0 0 08-09 ?407 3,714 7,794 p 4 0 4 4 4 4 4.0 02-09 2049 . 4 4 42.41 240@ 9,710 34,25p tl 3p,5di 21,4'2'.2 476) 42.095) 1.6,852 '45,9!3 ' 9.6 08-01'. 2048 , 0.5 gE-g9 4008 1.790 34.250 0 34,541 21.422 47'6) {2,49$) %8,952 3%.2'.49 ~.. %.p 62.49 2649 1. 4 0244% 2'4109 9.714 94,254 4 34.54%. 21,422'. 176) k2.49~5j 1@,652 44,026 1.5 qE-4Y 2009 . 9 B 08-61 4609 3,710' 34„250 0 34,549 29.02'2 176) 42.995} 19.852 8q~,342 2.4 42.01 201p . 2 4 02.4A 2p9p 7,7%0 34,254 p 34,547 2%.422 478) (4(495) 18.652 74.174 2.5 0$•pi 2014 . 2 5 0E-01 2414 3,7114 74,254 0 30,5-01 21,424 476;) (2.606) 18.852 87,539., 3.4 02-09 2091 . 3 4 02•q~i 2411 3,744 34.254 4 905th 21,422 (76} 42.095) 18.,652 146,457 3.5 q8-419 1411 . 3 5 0E-41 2411 3.7itl 5E:25p 4 34,541 29,022 (75} (2,695} 1@.852 192,427 4.q 0?-49 2492 . 4 4 (74.41 4412 3.794 34.250 tl 9p,849 21.022 (76) 12.095) 18,852 124.,981 4.5 419-49 20U2 . 4,5 0E-01 2412 7.7ip 94,250 p 34.541 21.022 {'A6) 12.486) 1@.952' i35~627 5.0 42.01 26'93 6 0 02-01 2413 1,714 94,264 0 94,549 41 b22 476y (2.095) 'A,@,652 147,880 5.5 48-41 2097 . 5 5 0E-41 2013 3,710 34,250 4 7p,549 21,622 676) (2,495) (8,852 958.751 6.4 42-0#~ 2414 . 8 0 44.61 2014 7A4 7 34.284 4 30549 29,0?2 178) 42.495) 98.862 1897^56 6.S 46-49 2014 . 8.5 OE•g1 249E , 3.114 34,254 4 94.541 21,422 (78) {2.095) %9:652 179,405 7A 42.41 2495 T q •0% 02 2615 714 3 34.254 0 30,541 21,622 (70) S?.685} 18,862 999,219. "f .5 g8.A1 2495 . 7 5 . 08-D9 2045 , 7,714 34,25p 4 3p~,549 21,022 (784 ¢2,095) i@.@52 998,686 8.4 42-qt 2495 . E.O 02x01 2014 7,716 34,254 p 9q„541 29,022 474) (2,085} (8.852 ?47.838 8,5 08~-41 2096: 617 8.5 08•Q1 20AE 3,774 84;250 4 36.541 21.422 476) 12.995) 15.,852 216.6@3, 9.0 42-qt 4 9 0 02.09 2017' 5.710 34,264 0 30.541 21.,422' (76) 12.495) 9&,652' 225.228 4.9 0.6-49 2097 . 9 5 4&qi 2997 3710 3d,25~0 4 94.541 2%,022 (76) (2,49'5) 18.852 233,465 14.53 02.41 2p9iE . 14 0 02.04 2418 3;714 34.254 4 84.541 11,422 676) 42„495) 9.@,@52 247.482 14.5 09_87., 2018 . 90:8 4@-4t 2099 1.710 14,454 4 30 541 21.422 175) 42,695} 18,952 249„989 19:.9 42.09 2499 91:4 02-pi 2p19 3.710 34,260 0 3®.541.. 21.422 C78) 52,495} 18,652 255.896 U9~.5 95.49 2499 11 5 48.01 ?418 1710 34.250 0 19,549 2(,422 4751 42.095) iE,8S2 283,811 12.0 q2-Wi 2'0.20 . 92 4 02-Oi 201.4 3,7 UO 34,260 p 34,54'1 29,422 476) 62,496y 18.852 274,782 92.5 pE»q1 202'0 . 72 5 08-01 'L420 7 710 34,284 4 30,541 29.,02x^^: 416) 42.095} 98,852 277 479 13.4 92-4i 2621 . 13 0 q2»41 2021 , 794 9 34.254 4 90.541 24.022 675) (2.495) 19.852 2@3,959, 13,5 08-47 2021 . 97 5 4B-p~i 2021 , 3,714 3d,25tl p 34.541 21,422 470} (2,086) 9.8,852 290,23& 14.4 02-01 702.2 . 14 0 02-49 2022 9 714 74,256 0 74,54.1 21.422 l7'6Y 42..4'959 76.852 29E,295 14.5 48.41 2022 . 14 5 08-Oi 2022 , 3,7'14 74,25'0 4 30,54% 21,042 (75) 44.ge6p 18,85?. 302.948 15.0 ¢D2.01 7023 . 1 5 0 02.49 2023 7„710 34,250 p 30541 21,022 478) 42,495} 18.852 907,844 . i5~.S ' 48-4i 2'4:23 . . i 5 5 0@-tli 2027 3.7%4 74,256 4 30,541 21.422 (76) 42,0957 78.852 313:268 7E.0 68.01 2424 , 96 4 01.01 44(24 3.794 34.260 0 70,541 21,422 1769 12'.495} 98,852 399.547 16.5 08-pt 2424 . 98.5 48.01 2424 9.710 34,254 4 34.549 21,422 4781 42,095) 18,852 ' 323.647 97.4 42-47 41 2025 :. 2425 '., 97 0 02-01 2028 8 716 34,250 0 34.549 29.022 47'6) !2.495) 96.85 2 328,575 17,5 08. . 5 7 09.01 8025 , 8:894 94,250 q 50.6411 21,022 478) 42.495) 18,892 533,337 18.9 42.-01 2028 . 0 0 42-'01 24'28 710 3 34..?54 p 4U,64i Zw,422 478) 44 095) 98 852' 737'.937 16.5 0@-09 2426 . 1@, 5 06.41 2'02:6 , 3,714 7E.250 4 74,541 21„422 {76), Q2,095) 16.652 342:362' 9.8.4 02.41 2027 . 19 4 02-01 202] 7,776 74,480 0 30„541 21.4?? 678} 42,085) 90,854 3d 6,873 ' N9-5 0B-09 2627 , ' 99 5 OB•4ti 2427 714 3 34!,254 4 30.541 21.422 (76) (2.495) 18.852 950.826 24.4 02.69 2028 . tl 20 02-p9 242@ , 7,J1p 34,254 0 30541 2'1,022 4763 (2,645') 94,852 354„835 20.6 48.49 29J8 . 20 5 OB-4i 2028 3.710 94;2Sp 4 30;541 21.422 476) (2,495) 18,652 358„749 21.4 42:.41 2429 . 0 2'X 42.01 2429 794 7 3E.250 a 34,541 21,422 C-/6) S2.u95) 96~e53 Jta2,457 ?ti.6 off-09. 20a9 . 21 5 48-0i 2029 , 7,714 34 254 p 30.54'1 21,022 (78y~ {2,095) 1E,@52 368,067 22.0 02-091 2090 . 22 6 42-41 2479 3.714 . 74.250 4 70,54'9 21.422. (75) (2.095) 1.@.852 959.564 22.5 ' 48.01 243'0 i . 8 22 48-01 2030 7,7'90 3E,454 4- 30„541 21.022 476) (2,495) 99,852 572,936 23.4 42-41 2031 . 27 0 tl2~-01 209t 3 794 54.254 4 30,641 21.022 476) 12.4'95) 98,652. 376,197 27.6 46.41,, 2479 . ?3 5 48-09 2039 , 8,790 34.284 0 30541 41,922 4'16) 42.095) 9@.852' 379.74E 24.6 42.09. 2432 . 4 24 : 42.49 2432' 3:714 34254 p 3q.S-01 21,422 67'6) (2,49Sj 98,@52 742,399 24.5 0@-41 2072 . .. 2+4 8 48-01 . 4032 3;710 34,450 0 30,541 29,022 (XS) 53,095} 18.852 395 934 25.4 42-01 2433 , 25 6 42x01 2637 3,7fl4 74.254 0 3454fl. 21.422 (i6) 12,495y 15.852 3B~B,176 25.5 4@-01 2437 . 25.5 08-p9 _..2033 _ ,8,79U S+u.254 ~._ m....._. 0 ~~;9U~949 ~____.... 27,,,.,,x,22 ~ ~,,1„ _,_,,,,,,, :.~,.. 42.n~st .-_...-...48,852 394922 26..0 _.,, 42-~01 2034 t1dTE5: 1. State Auddtor ~gsymenk is~ 6aaotl'., upon i.si. halt, pay+ 2443 sc9uatl and, may increase over tc:.itin o1 nlstr4cl p, pssumrrs development in cnnstrucleli in 2005, assessed Ill 2648 and (1x31 dncremeit'¢ i5 pald In 2647. 8. Amount txl'tnOremonk wu1B uary de~.Pr;ndiing upon marMet va9we, Pax rates, cia33 rates, Uonstrucl9en sc~hedtdYe ar4tl intRa¢1on 4n Tia~rw6i ^Jal4e. d. 9mtlalion en lax rages l:anno9. be ceprured. 'B., i'4F aloes not sa prcr rra s¢a4a wide pa'operty !:axes u~r marke9 'alun faroPe'a1y awes P raparad 4y 61a1eas G4trnereP.oac c~vmin~raz ter 4as F.51ow V ~,~ ~.~ 81121280$ PA}' A.5 'i8U GO 7107E ~~ ~~ - ~-~- Vf'EfilO9 BEw9INNIFICI 4apivnirvp ,aaawrad Intera.w P'4rvai p,a1 reel 6rvdlrvp +'~. 84th, 't r. 6uYalnee Irvfeepcl GalMenf ...,.~ ..,.» Prlvrnrmw . PEyrmen9 8plprvap r 68-41 .::~4u~ 1' ic a~l6 Yappe Q+1=.. . 2.1_65. , ~..9 02»09 2096 3$$,17'6 13,5$8 9 4 9 401,362 9.9 OB-91 204E 441.162 14.052 0 0 0 415,824 0.9 02.99 2907 415„821 14,554 4' 0 0 436,375 0.9 08.41 2497 430.376 15,063 0 0 4 445,441 4.5 02-071 2408 445,441 15,889 3,26'9 18,852 442,180 i,0 08.01 2408 442,180 15,476 3,375 18„652 43&,804 1.5 02-41 2944 478.694 95.38$ 3194 16.652' 435.310 V 2.0 p$431 290'8 435,314 1'8.236 3,518 98„852 431,6'48 2.5 02-01 2610 431 ,685 15,109 3.74'2 19,951 427,452 3.0 0$-01 2010 427'.952 94,876 3,873 98,852 424,079 3."a 42-41 2011 424.07'9 14,843 4A49 18„852 -024,074 4.9 98.01 2911 424,076 74,702 4,945 18,862 476,820 4.5 92.41 3012 415,820 i4,55~7 4,288 18,652 41#.,828 9,0 98.01 2012 411,82E 14,407 4,445 96,852 407„~81 5.5 42.01 2013 407,1$1 94,151 4,E0'0 18,852 402.580 8.9 98.41 2493 402,580 54,089 4,761 18,$52 397'..819 6.5 92-01 2w]44 387.69'9 13.824 4,8:26 18,852 382,887 7.4 49•+01 2914 382'..881 13.751 5,749 18,$52 387.,790 7.5 02-01 2016 387,799 13,573 9„278 18,652 382.,511 8.9 tl8-Ot 2945 382,691 13..986 5.484 18,852 877,087 8.5 92.41 2016 377,047 93,187 5,E55 98,852 371,392 4',0 w36-0i 2416 971,382 y2„948 5;653 #8,552 368,539 4.5 02-9i 2077 365.539 12,794 6.958 7$,852 389,481 99.0 98-01 29'47 ?54,481 12.582 6.270 96.652 553.211 19,5 92-97 2096 353,211 92,362 6,489 88,$52 348,712 11.9 48-p1 2998 346,722 12,135 8.7'97 16„852 340,405 11.5 92-41 2.914 349.445 71.490 8.&52 46,852 333,994 12.4 . 48»91 2094 333.054 11,6'57 7,185 18,852 325,859 ',. ' 92-5 02-01 2020 325:858 99.495 7.447 96,862 316,492 19.0 08.04- 292'0 318,492 14,144 7,707 9$,$52'. 310,705 17.!5 p2.4`1~ 21721 319,745 90,875 7977 18.,857 301,776 14-4 06.4v 2021 302.728 10.595 8.288 18.852 294,479 74-5 92-0y 2022 244,4F1 96.306 9.645 78,852 295,92fi 15.9 '98.01 2022 1$6,42.E 90,407 8,644 18,652 277,482 95-5 02-91 2023 217,082 B„648 5,554 98.b82 207.826 18..4 48-49 2023 257.92$ 9,317 9..474 78,852 25$,453 16.,5 42.07 2024 258„453 8~.,64Cti 6,806 18.852 248,E48 17.0 98-91 2024 24B.,E48 8,703 10,748 16.852 236.486 67'.5 42-91 2025 238,496 6,347 14,644 86,652 227.884 18.9 06.01 2925 227,844 7989 90,$72 x$,652 297,922 18.9 02.91 2026 21'7 ti22 7.548 59,253 18,652 205,870 99..4 46-01 202E 245.$70 7.205 61.0'48 98,882 184.223 98..5 92.91 2027 184.223 8,788 12,454 98:852 182.164 24,0 48-0ti 2927 162.169 6,37E 12,47E 9p},85? 9fi8,fi83 `0.$ 02-0'7 2028 188;883 5.838 '12,&13 90.852 156.787 - 04-4y 2428 95fi,781 8,467 98,364 16,852 149,41fi 171-91 2928 143,416 5,02'9 93,632 18,882 12'4,584 fX8-01 2429 124,Sb4 4.b35 14.,356 16,662 915,244 92.01 2930 915,266 4,93-0 14,817 18,$52 900,451 ..,.. 98-99 2030 180,481 3,598 15,33E 18,852 fiS,175 t3.5 42-09 2931 65,Y~15 2'.479 .15.673 58,852 64,242 24.4 48.01 2431 65',242 2,423 88,428 7$,692 82,874 24.6 02.95 20'32 92'.,874 1,848 '41,003 16,852 35,670 26.0 0$•01 2032 3'5.$14 1,253 17,598 18.852 78,212 1fJ7.0.L.INYPgPS'r 973.285.p8 YOThl PRIY4~CIPAI, d45,d4a48 tOTRL 1,416.705.36 PTnPs~ra4 lvy 6Po~taYa. P a a~ 3 pf 9 1`N''89ENI UA It PER1aG ENDwyG Yrs. 84th. Yr: C.G 91-bi 2006 0.0 08-9'0 2064 0.0 62.81 2407 0.5 96-oY 2047 0.5 02.01 2046 L4 08.47 2006 1.....6 42.41 2448 2.4 48.41 299'8 2.5 0'1.41 2074 3.4 08.09 201b 3..6 02-0~5 2911 4.b 08-k9 2411 4.5 02-04. ;2492 9.4 OQ-07 2012 '......... 5:5 42.111 2013 8.4 46.09 2493 ', 5.5 02-09 2414 '',. 7.0 98.09 2414 . 'i 7.5 01-09 2015 ''., 8.9~ 98.01 2415 ''~, 6.5 02.91 299E 8.9 48-01 2916 8.5 42-~4i 29+r7 99.0 48.91 2497 '. 10.5 62-69 2018 99.0 08.99 2416 91.5 91.67 2019 91.0 48-01 2919 12.5 42.09 292'4 93.'4 96.41 1020 13.5 92»01~ 1021.. 14.4 08-01 2921'... 14.5 92.01 2922 15,9 d~OY 2422 15.5 02-01 2923 96.9 08-49 202& 15.5 U2.91 2424 11.9 68-49 2424 17.8 02-49 2425 16.9 96-u7 2426 1.6.s 02-95 2926 19.0 08-41'. 2426 19.5 92.91 2927 24.0 06-9Y 2927 24.5 9:12-4i 2428 21.0 46.41 2928 21.6 02-01 292.9 22.9 98-01 2928 22,5 92-49 2434 23.0 46.41 207D 23.9 02-06 2034 24.9 08-01 2931 24.5 02-IkY 2932 25.Q 2w6-01 2032 25:5 92-p1 2033 cainYVmuxw.rorw C~OrvlrifpRY 71w 6L5Nhpwwa .~ ~~ • APPENDIX E MINNESOTA BUSINESS ASSISTANCE FORM (MINNESOTA DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT) C~ • APPENDIX E'~ c~() • • • p si v y .° ~:k« tnnes6t~ Please fill in date agreement signed (same as question 21) Minnesota Business Assistance Form ^ The Minnesota Business Assistance Form (MBAF) is used to report each business subsidy (including lob Opportunity Zone (]OBZ) [ax exemptionslcrediQ and financial assistance agreement signed from Aueusr 1. 1999 rhroueh December 31. 2004 unless goals have been achieved and reported on a MBAF per Minn. Stat. § 1167.993 to § 116J.995. ^ Businesses receiving JOBZone Benefits must report through 2015 even if goals have been achieved. ^ The following government agencies must submit a MBAF: 1) any local govemmenUagency that signed a business subsidy agreement since January 1, ]999, or represents a population of more than 2,500; 2) all state government agencies authorized to provide business subsidies. ^ DEED will contact any local or state government agency that is required to report but has not done so by April 1. Business assistance may not be awarded after June 1 of each year until a report has been submitted. ^ Questions? Call (651) 296-0580. Information on where tc mail or fax your completed MBAF(s) is on page S. An online version of this form is available at www.deed.state.mn.us/Community/subsidies/MBAFForm.htm Section 1• Grantor Information l.. Name of grantor (funding entity) 2: Name of person completing this form 3. Street address 4. City 5. Zip Code 6. County 7. Phone number 8. Fax number 9. E-mail address 10. Please indicate wha in your organization should receive the MBAF if different from the person in Question 2. Namefl'itle Phone number Street address City Zip Code 1 I. Classification of grantor (Mark one. Ifgranmr is entity created 12. Has your organization held a public hearing on and adopted by govt agency, please indicate affiliation. For example, a city criteria for awarding business subsidies in wmpliance with EDA would check "City governmenr. ") Minn. Stal. § 1161.994? (Mark one.J ^ City government ^ Yes, in 20D5 (attach criteria) ^ Yes, in 2005 but have not yet adopted criteria ^ County government ^ Yes, prior to 2005 ^ Regional govemmem Ij Yes Hearing Date: Year Criteria Submitted: ^ State government ^ No ^ Other (Please specify) ^ Other Please attach ex Janation. 13. Has your organization signed any agreements to award a business subsidy or financial assistance from August 1, 1999 through December 3I, 2004 unless goals have been achieved and reported in a previously filed MBAF? (Mark one.) ^ Yes (Compfefe the remainder of the farm unless goals have been achieved and ^ No(Stop here. go to section 5 on page 4.) re orted in a reviousf tied MBAF er Minn. Star. 1 /6J.993 and 116J.994. Section 2: Reci lent Information 14. Name of business or organization 15. Address where business subsidy or financial assistance receiving subsidy or financial assistance will be used Street address Cit ~ State ZIP Code 16. Does the recipient have a parent corporation? (Mark one.J ^ Yes (Indicate name and address of parent corporarion below. Ijmore than one, indicate uhimate owner.) ^ No Name of arem co oration Street address Ci State ZIP Code Minnesota Business Assistance Form(D?/Ol/OS) Page I of 5 Dept. of Employment and Economic Development ~ ~~~ one. • ^ Manufacturing ^ Services ^ Retail Tmde ^ Wholese I the recioient relocate as a result f ^ Yes (Indicate city and stale of previous address and reason recipient did not complete this project at that address.) City/State of previous address Reason project no[ completed at previous address ^ No (Go to Question 19 ) 19. What would recipient have done without business subsidy or financial assistance?. (Mark one): ^ Remain at previous location, but not expand O Remain at previous location but expand ^ Relocate to different Minnesota location ^ Relocated outside Minnesota ^ Other ^ Finance, Insurance, Real Estate agreement? Total dollar value of business subsidy or financial assistance 121. Date agreement signed (In addition to the agrees (Please separate value by type in Questions 24 and 25.) indicate any dates the agreement was amended.) (Enter zero for JOBZ, Biozone and Agzone projects.) C~ 22. Benefit date (Indicate the date the recipient receives the business subsidy or improvements were finished, equipment was placed into service, or the recipient occupied the property, whichever is earlier.) 23. Does the agreement provide a business subsidy or one ofthe four types of financial assistance (see Question 25) required to be reported? (Mark one.) O business subsid O financial assistance 24. If the agreement provided a business subsidy, please indicate the 25. if the assistance was one of the four types of financial assistance, type(s) and total dollar value for each type. please indicate the type(s). ^ not applicable, agreement provided financial assistance ^ not applicable, agreement provided a business subsidy ^ loan (only principal) $ ^ assistance for property ^ grant (i.e., forgivable loan) $ by contaminants $ ^ tax abatement $ O assistance (or renovating building O TIF or other tax reduction or deferral $ stock or bringing it up to code, and ^ guarantee or payment $ assistance provided for designated O contribution of property or infraswcture $ historic presrna[ion districts, when ^ preferential use of governmental facilities $ 50 percent or less of total cost $ O land contribution $ ^ assistance for pollution control or ^Biozone S 0 abatement $ ^ IOBZ (state tax exemptions/credits and sales tax) $ 0 ^ assistance Tor a TIF soils ^ ]OBZ -Agzone $ 0 condition district $ ^ other (Sped subsidy type.) $ (Note: no dollar value (or zone ro ects 26. If [he assistance included tax incremrnt financing, please indicate 27. Are any other grantors providing a business subsidy or financial the type of TIF district? (Mark one.) assistance to the same project? (Mark one.) ^ not applicable, assistance was not in the form of TIF O Yes (Specify each grantor and the value of their assistance below; attach an additional sheet if necessary. ^ redevelopment ^ renewal and renovation ^ soils condition Grantor Value ($) ^ economic development ^ mined underground space ^ hazardous substance subdistrict Grantor Value ($) ^ No C J Mimxsota Business Assistance Form (0?/D1/05) Page 2 of 5 Dept. of Employment and Economic Development ~~~~ • Section JZ: JOZ Information Complete Questions 28-31 if the financial assistance was awazded to a JOBZ qualified business recipient receiving 1OBZ benefits. (If not, go directly to Question 32.) JZI. What was the amount of private capital investment of the business in the JOBZ zone prior to December 31, 2004? Real (land and buildings) $ Personal (equipment) $ 1Z2. What was the property tax assessment which was not collected for the property where the IOBZ qualified business was operating during the period of January 1, 2004 and December 31, 2004? (Please specify each additional parcel iden[ifrcation number and [he va/ue of the property tax assessment tha7 was not collected during The period ojJanuary 1, 2004 and December 31, 2004; attach art additional sheet if necessary - ob7ain information jrom county tax assessor's office.) $ for Parcel Identification Number: JZ3. What wes the value of Wind Energy Production Tax, if any, for the JOBZ qualified business that was operating during the period of January 1, 2004 and December 31, 2004? S lion 4• Goals and Public Purpose Identified in the Agreement Minn. Stat. § 1161.994 requires that business subsidy and financial assistance agreements state a public purpose. public purposes were stated in the agreement? (Mark al! that appfy.) ^ Enhancing economic diversity ^ Increasing tax base (cannot be only purpose) ^ Creating high-quality job growth ^ lob retention ^ Other (please specify) ^ Stabilizing the community _ 29. Indicate whether [he agreement included the following types of goals, and whether the recipient had attained those goals at the time of this report. (Fill in The boxes and anainmem dare(s) for each goal) • Goals Target attainment All goals established? dates (month & year) attained? A) Specific wage and job goals to be attained within 2 years ^ Yes ^ No ^ Yes ^ No B) Otherjob-creation and/or retention goals ^ Yes ^ No ^ Yes ^ No C) Other wage goals ^ Yes ^ No ^ Yes ^ No D) Goals other than wage andjob goals ^ Yes O No O Yes ^ No (Please attach descri tion o oats and ro ress toward attainment i na7 documented in Questions 30 and 3l. 30. For each of the following wage categories. indicate the job creation and/or retention goals stated in the agreement and the average hourly value o(any employer-provided health insurance goals for those jobs. (Only indicate job creation goals in full-time equivalents if you are unable to separate goals by full- and par?-time positions.) Full-time Parl-time! FTE (onl it unable to Hourly W age Job SeasonaUTem p. stated as FT/PT) Hourly Value of (excluding benefits) Creation Job Creation Job Creation Job Retention Health Insurance no hourly wage-level goal less than $7.00 $7.00 to 58.99 $9.00 to $10.99 $11.00 to $12.99 $13.D0 to $14.99 $15.00 and higher Minnesota Business Assistance Form (02/01 JOS) Page 3 of 5 following $ $ $ Dept. of Employment and Economic Development ~cQ) 31. For each of [he following wage categories, indicate the number of actualjobs created and/or retained since the benern date ono me acm. hourly value of any employer-provided health insurance for those jobs. (Only indicate job creation in full-time equivalents if yov are unable Jo separate job creation intofull- and part-Dime positions.) • Full-time Part-time/ FTE on if unable to Hourly Wege Job SeasonaUTemp. stated as FT/PT) Hourly Value of (excluding benefits) Creation Job Creation Job Creation Job Retention Health Insurance • less than 57.00 57.00 to 56.99 S9.00 to 510.99 S 11.00 to S 12.99 513.00 to 614.99 515.00 and higher 32. ion 33, 34 and 35) and fulfilled al ^ Yes ^ No S 5 S S 5 S agreement (Mark one.) Section 5: Recipients Failing to Fulfill Obligations (Do nor complete this section ifyou completed it an another MBAF submitted to DEED.) 33. During the period ]anuary 1, 2004 through December 31, 2004, dtd your orgamzabon have any recipients who fatted to report a! by Minn. Stat. §1161.993 and §1161.994? (Mark one.) ^ Yes (Indicate the name of each recipient jailing to report and the value of subsidy or frnancial assistance awarded to Jhat recipient. Attach additional pages if necessary.) Name ofrecipient Type of subsidy or assistance (See Questions 29 & 151 Value of subsidy or assistance ^ No Did your organization have any recipients who failed to achieve any goals or fulfill any other obligations under an agreement signed on or after ]anuary 1, 2004, that were required to be fulfilled by the time of this report? (Mark one.) ^ Yes (Complete the remainder ojthis section.) ^ No (Stop here and submit form to DEED.) For duestions 35-39: Provide the following information for each recipient (ailing to fulfill goals or any other terms of an agreement that were on recipient and agreement: • Name ofrecipient in default Type of subsidy or assistance Initial value of subsidy or assistance Street address ofrecipient Ciry2ip code of recipient Outstanding value of subsidy or assistance 36. Reason(s) for default (Mark all Jhat appty.): ^ recipient ceased operation ^ recipient relocated to a different community ^ recipient was unable to till vacant positions ^ other (Specify reason.) Minnesota Business Assistance Form (0?/01105) Page 4 of 5 Dept. of Employment and Economic Ikvelopmem ~(a) • 37. To dale, has the recipient fulfilled its repayment obligation? (Mark orte.) O Yes O No, recipient has beeun to repay the assistance. ^ No, recipient has not beeun to repay the assistance. 38. Has the agreement been amended to extend the recipient's deadline for fulfilling its obligations? (Mark one.) ^ Yes O No 39. Describe the steps being taken to bring recipient into compliance or recoup the subsidy: Return your completed MBAF(s) by Anril 1. 2005 EITHER Mail To: • Minnesota Business Assistance Report Minnesota Department of Employment and Economic Development -Analysis and Evaluation 1"National Bank Building 332 Minnesota Street, Suite E200 St. Paul, Minnesota 55101-1351 OR Fax To: (651)2]5-3841 (Next year, please use the online version of this form. It can be found at www.deed state.mn.us/Community/subsidies/MBAFForm.htm.) • Minnesota Business Assistance Form (u?/Ol /OS) Page 5 of 5 Dept. of Employmem and Economic Developmem ~~Q~ APPENDIX F • REDEVELOPMENT QUALIFICATIONS FOR THE DISTRICT • APPENDIX F'~ ~(~ C~ Redevelopment Tax Increment Financing District Eligibility Study TIF District 4-14 "Cornerstone Commons" 104, 116 & 118 Main Street Hutchinson, Minnesota Prepared by Miles R. Seppelt, EDA Director Lenny Rutledge, Building Official Jim Popp, Fire Administrative Officer July 29, 2005 • ~c~) Governing Statutory Language • To be eligible for a Redevelopment Tax Increment Financing district, the area to be redeveloped must meet certain requirements, as outlined in Minnesota State Law. These aze: Minnesota Statute 469.174 ~~ Subd. 10. Redevelopment district. (a) Redevelopment district means a type of tax increment financing district consisting of a project, or portions of a project, within which the authority finds by resolution that one or more of the following conditions, reasonably distributed throughout the district, exists: (1) parcels consisting of 70 percent of the area of the district are occupied by buildings, streets, utilities, paved or gravel parking lots, or other similar structures and more than 50 percent of the buildings, not including outbuildings, aze structurally substandard to degree requiring substantial renovation or clearance; Subd. 10 (b) For purposes of this subdivision, "structurally substandard" shall mean containing defects in structural elements or a combination of deficiencies in essential utilities and facilities, light and ventilation, fire protection including adequate egress, layout and condition of • interior partitions, or similar factors, which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance. Subd. 10 (c) A building is not structurally substandard if it is in compliance with the building code applicable to new buildings or could be modified to satisfy the building code at a cost of less than 15 percent of the cost of constructing a new structure of the same square footage and type on the site. The municipality may find that a building is not disqualified as structurally substandard under the preceding sentence on the basis of reasonably available evidence, such as the size, type, and age of the building, the average cost of plumbing, electrical, or structural repairs, or other similaz reliable evidence. The municipality may not make such a determination without an interior inspection of the property, but need not have an independent, expert appraisal prepared of the cost of repair and rehabilitation of the building. c.pC~ r' ~i ,T ~ ~ .. Y> ~=~-; ~a _a ~ f s ~ ;- 4 { ~: . ~ {{~~ C~, }` 1 ~ a .r ~ti r Redeveloprrrer~t °T~F district 414 wild ir~clta~e the loin Notated at ~ 6~~, 1 ~ ~~ry~ 8 jM~~ trot II1 ~~.AtCN'~1rtSOI"1, ~'w`N'iill~~~otaw N~e~e1"8'lll t(7 the aeriaN pNloto beNo,, tN3ese are currentN;y VaCaI7t N(7t, a~ old jJa'V4'~'1Sho~J> aid a dcserte:cN has station. Figure l -- Aerial. photu~ aaf study` urea 7~aN~le 1 ~- Identi~icatiorn a~f study Area, IC~at~r~ ~iaam~e AdcNress ~~.e~a1_,T~escri~tiy Rix Gas Station N ~4 J'~air~ street I'~1. Lot Five ~5} a~~cN tN~e soratN~ I'~ine Feet ~~°} of Loi Four (4~, NocN~ Forty~"i~`~wo (2~, I~1ortN~ One~l~a6ff (1/2} afGty ~af'~-lutcl~i~~s~i~~, ~'N:cLcod Go~ar~ty, .N I'a~w~ Shop N ~ 61'w~air~ Street I``66. I~Torth ~~er~ty~~~"ot~r feet ~~"} of SouatN~ N~aN~" ( 1 P~~ of Lot Four (4~, l~NoN7 I-~alf ~fi~ l /), (ity o~ ff-~natc::NNroir~so~, IVIcI,ec~d G'ca~aty, N Vacant Lot 1 18 amain 'Street 1`~ortL ~ I~a1f 102 cif Lt~t Fogs` ~4~, floc Fart~y-tca (4~)~ T~orth N-~a1f`(I/~~ oCit~ of N..t~atcN~insora~ 1'w~cL.eo ~o~i~ty, hit ,..~" ,_°~,~... ~k ~ ~ ~" w" Study Area Figure 2 -Map of Study Area Criterion 1 Main Street 1'~ Avenue __ Minnesota Statute 469.174, Subd. 10. (1) states: "Parcels consisting of 70 percent of the area of the district are occupied by buildings, streets, utilities, paved or gravel parking lots, or other similar structures... " Findings The Rix Gas Station lot, at 104 Main Street, is completely occupied by an old service station building as well as paved and gravel parking lots. As such, per statute, it is "improved." ~~ ~~R~ The Pawn Shop lot, located at 116 Main Street is completely covered by the 3,169 square foot building -being therefore "improved" as defined. by statute. The lot at 118 Main Street is completely vacant and cannot be considered "improved," given the criteria outlined in the governing statute. As shown in Table 2, below, the three lots cover a total area of roughly 17,426 square feet and have an improved area of 13,070 square feet. Table 2 -Improved Square Feet of Lots Address Total Square Feet Improved S uare Feet 118 Main Street 4,356 0 116 Main Street 3,169 3,169 104 Main Street 9,901 9,901 TOTAL 17,426 13,070 The percentage of area improved is given by dividing the number'of square feet improved by the total square footage of the lots. Mathematically this is: Improved = [13,070 / 17,426] = 75% • Since parcels consisting of more than 70% of area of the district are improved, as defined by statute, (in this case it is 75%) this criterion is satisfied. Criterion 2 The second criterion that must be satisfied is that more than one-half of the buildings in the proposed redevelopment district must be found to be substandard based upon an internal inspection. The governing statutes state: Minnesota Statute 469.174, Subd. 10. (1) "...and more than 50 percent of the buildings, not including outbuildings, are structurally substandard to degree requiring substantial renovation or clearance" Subd. ]0 (b) "For purposes of this subdivision, "structurally substandard" shall mean containing defects in structural elements or a combination of deficiencies in essential utilities and facilities, light and ventilation, fire protection including adequate egress, layout and condition of interior partitions, or similar factors, which defects or deficiencies are of sufficient total signif cance to justify substantial renovation or clearance. " ~~a~ `'`.r~l building is n~rt structurally substandard %f'at is in c~ampliance with the building c~ade applic~r~le tc~ new buildings car cc~°Id be n~cadied to satisf,~ the building cede at a cost oaf less than 1,5 ~aercent ca,~`" the cast c~• cvns~truc:t>~g a new structure of the Barrie square ~r"cactage and type on the site The unicipalit~yr naay,~nd that a buildr°ng is net a'isquali~ed as structurally substandard under the preceding sentence era the basis of reascanably available evidence, such as the s•ie, ty,~e, and age ref the building, the average cast a~ plumbing, electrical, err s°tructural repairs, ar ether similar reliable evidence. The mi~rricipcrlity Wray neat make such a determin~tican ~vithnut an interim iaaspeaticin cf~ the prrrpcrty, taut need neat Dave an independent, expert appraisal prepared of` the cast ,~f repair and rehabilitati~an caf the building. Find~n~s both the has statyo ~t l a ~vlaia Street North ~rhd the t'~wr~ S~~op 1oc~ted ~t 1 Main Strut North r7ver ~nspe~ted, ~~:ti~dirig god v~o1'at~ans for ca~c~a buuld~xag, a~r~ flisi~d kaelo~. ~~ Cas Stata~ -- Vialat%ar~s of`Existing Building Cade 7'h~ rrhain door entering the o~f~co area frorra the exterior tl~rreso[d exceeded the rr~~a~mu ~.1Lo~rable height o~ threshold of ~.5 as stated in (~tJC~ lnterrr~;tac~nal t3-aildin~ Code (IBC") secti~rri l a4~4o I .. Cost to F~ernedv = ,~9 °l~ie I~uildin is not caxrrerrtly eq,raipped with an accessible toilet roo~r~ as repaired irz IvJlinrresota State 13ttildir~~ {.,cede ~513(~) Sectlorl ~~~.~~~ 1teIy1 ~. l]~71?2Lrt ~. "itho~xt the uidance o#" ixr~ ~~~~~~~' calc~alatio~i, it coa~ld e assured that the doors, tfi r - ~ ~ ~ " r M1 ~R S r ~`~ ' r , +~ '! ~ ,~ ;,. ~a ~~ ~''' Figure ~ .Iran beams snp~arting the sva11 artier the ~,i,nda°wrr~ and averhead dac,rs are fail."rng. Irn ar~ditian, the reef, faunclatian, walls, winda~rvs ti1aars a~•e ~aat ups to current energy eftlciency req uirernentsa ~.~t~ t ~ I~ tgure 3 -Rix. Gas Stdtian windows, walls, 1"aundatia~n and rac~f are currently in need ~f adtlitianal insulation. l~fiinnesata Energy Cade.. .,4` s; ,~: b ':T++~. ~.. ~.v 5 i ~` - ~' ,.. ,~.. ~., , ., _ - ;~.~ ~* Fa~r~re S (.4lpo~ e) -Iron ]a~ar~s sulapcarting Inrge Irortc-ns o]` tl~e exterior wall a~°e close ~a st~-ucturaN I"ailnre, The present restroorras have no means of vcntilatic~r~ c~a.pt windrows that are quite high c7f~° of the floor acrd would be Srnpractical to c~l~erate. 'Ventilati~an requirements fear tcailct rooms can be fc~urad in section 5~2, l7 Il'~C, Crast to l~.emedy = 6 I~igaat°e C (1[.,e]°t~ ~M I~estroo Izave i~radgnn#e rFerrtilatiat~, Coast to l~err~edy 4,60 ~. The current heating system p~r~rvies ccnditianed air tc all p~c~rtians ~f the building. ` he heating system serving the ser~rice station partie~n canna serve the ca~fice car restr~aar~°hs rvith~aut separatican, ~~!00 international . Pvlechanical Code (Il°vif"~ sectioN~ '~l g.6. Cost t~ Remedy = ,~~~ S. The iran beams suppartin the black wall, para~aet and rc~r~ aver the overhead dears and windows in the office area appears to be dctericarated to a point of appa~~ent failure. "T`his is evident in the cracking. +~~ the mortar joints, Cost t~ l~errnedy = ~15,17~D ~" ~ °~ ~ ~". µ ... ~.~ ;". the rr~indas la~~ted an the nart a~1 af~ tl~~e se~-v~ee station partian of the building are ]ac~tect vvithira three (~ feet of the apparent rraperty ~ineo 'he rmttst be dart a ~ fire rated as:~en~1~1.y, ar elirr~inated caa~etel~, chapter 7 ~~~" fast tee lerned~ -~~ 1,t~1Ct fv,leetrical ssterr~ of the banding ~nuct be replaeed. (~"ast to .e~nedy _~ $f,t50C~ ~. Aslacstas is p~res~ent in the roof" flashing.. and the patty in the ~rrinda~rs an the north side of the bi9dit~,g. "7'"his are usl be rerr~trved. 4~'ast to ~eraedy ~ 1,1SCl "~ ~ta~ cast~y~ to bring. fhe building up to current b~aiidin~ code standards ~-~ X97,859 ~.stirnatec~ cast afa ne~v building: '~,'~7~ l~' at 15~- f l~ = ]~,4f10 ~" ~ `, ~~<~~ Figure 7 -- ~1~'~¢~dovvs must be part of a ire rated assembly or eliia~ated~ Figure ~ - 7'h~ buildi-~t; electrical. system is na~t up tip eurre°~1 r°ecltitir°ements :~r~d rast be re~l~cedn. °f~ ol'° the estiaatcd cast ~~° new uildi .~= X28,710 since the total cast to renavate the cxlstin~ 1~uildin is mare than. Y 5°f~ crf t'~e cyst tee construct a new l~uildin the i s station does meet the statutr~r;y definition o ``sul~staridard." ~]} sCr~~t~s ~~~e° ivl~rcus ~n~~ru~~i~rrt,, %3~rCJ ~~5~n Ave. s1~J, i'r~nshaar~„ N S~r281 ph. 3~;Q1m'~7$=~r616 lP~w~i ~~o~ ~v'i~rlatio~as ~rf ~~istin liul~ing "ode 1, Plurnbiri system is not rriairitained in a safe and serviceable condition from the standcaint of bath inechariics and health. lw!~innesota l~l~iri~bia~8 ~cide 47Y5.~12~~} item . Cost t+~ ~eiriedy = 33~ 1 ~0 :. °T"lie building is nat cuently Figure 9 _ The f'a`un Shap equipped with. an accessible toilet room as rewired. in inriesota Mate ]Building ~:cade ~9VIB~) se~;ti~n 1 ~4.04t~5 item aubpart 1. {~c~st to T2:erraedy = $~,4C9G 3, l~~rc~~"leaing at rear o~`buildin with corresponding damage, interior ceiling collapse. Cost tc~s l~eri~ed~ = l ~8~ 4. wilding i~arapet eol9apsii~g pan. the sautih side oaf the str~ct~a~°c,. (Fans under haardc~ns buildings jursdictioii~ ~'ost to .erri~ed~~ ~ ,7.~1 ~: ~. It c:or~ld be ass~a,xied that fhe. dca~rs, wiiidows~ walls, ~"~au;uidaticn and roof' are currcntl iii need cfi additional insulatsc~n. lvxinnesota t~nerg ~"cde, ~ ,,4 ~,, ~, ,.. - ,4 .,.,,~~ Figure 1l? -Wall par~~aei is ct~ltapsang. fast to ~er~edy X55,80 6a 'rant all af`ba~ildlrr is fax~n~; strxxet~r~l~y am ~re~.rs to separatur~ tarp the rest at"the stx°uctaare, '~"here ~~ siraticr~t d,arler +~' ca9l~se. ~~'~l~s ~~~dr la~zrd~s ~rui~d~~~s j~ars~lict~ara~ ~;ast to erred = ~7,Of~ ~a ~ta~ldi~ his rra exit sir7s~ ezt ~~hts ar srrrcre etectarr s~sterrrw ''~a~tes 8ect~arr l 005... nt the tt3. fast to .erned~-- 5,35 Asbestas is pr-eserat ara Naar tees, inar~ ea~~kirr rrd r~af ~~as~in~. ~;ast t err~e~l~ = ~l 1,00 atal east to hrirrg the hra~ld~rd rr to crr~errt h~a~~arb cede st,~rrrs =_ 1'8~1Q4 l~,stitecl cast riff r~er~r la~lir~~;: `~, ~ ' at "~75 / '~' -- 7~+~1~ 15®fp crfthe est~~~~tcd cast c~~ rre raa~d~rr~ _-- S,~r40 ir~ee the tat~l cast to rena~w~ate the existing bi~dirr, ~s rrrore than 15~',/~; of the cast to carrstr~rct ne-w~ ~arxildirag, the ~~v~rn 8ha cues rr~eet .g}~ st~tutary de~nitian oaf `'`s~starrdrd." ~~gu~e l l - ~'h~e 1'r-arr~ w.~al~ oi" ih~ hrril~irr ~~ag~ears fi~ be se~a~ratin fr~xrr the rest ~~' the structraew ,,.w ~' ~ ~~ [~"igur°e 1 ~ ~"n~tic~r~~ of the. t"r~r~t v~ll. ta~ve b~rr~n to eery ~,~-ticcakr~y bwl~ ax~tw~rds~ end in~i~a~t~ a pat~ntiad ~f str~ctur°~1 c~ll:~ps+~. c~nl~so~a ~~he stat~.at+~r~y cc~r~c~~tic~~s ~r ba~tl~ ]rat ecavera~e end p~ercetae ~ subst~~adard ~ild~ns the pr~c~~ed ~edeve~~pra~et area ~°e .~xa~t. ~~sequetZ;y the area u~~~er e~r~sideratfa~ ~s eli~~ale f"~r a :eee~c~~~r~era~; "~~"a ~r~e~eauerat ~~ ~r~~r~ear~ distr~et. `W ,~µ... ~'~ A]']f~]Elwd-3l I~L7'1`/'p"Old LJA,L~Ip't~'~4.'"I"t07"J3 s~t~~ ~ z~ ~'~" }Y~ t -' BUT I FOR ANALYSIS ~~?~~~, ~~ `~i~~ . ~. ~ u~rrrt# P.l ~rk:~ t 'Vlue - :-~:. 247,31~C1 Never Nl~ri~ei'v~lue - Ff. 1,7~~„OC10 D~ifFerenee 1,502,701] l~reserrt Value taf ~'~x Ir~orerr~ent 435,927 Oifierence _ ii,061a,773 VaNue Likely t0 ~~c~ur t/1/ltN1out 'I ax ln~rer°nent is Less ~f~h~n: ~ 1,1]66,7'73 "f he site is cornpr~ised of flares paresis, iracludirag ~ vaoarat ~~ station and a substandard retail baaildin~. l3otlr buildings are obsolete, substandard, grad have no practical. reuse. 7'lae parcels, irtdivad~rally, are too small to accarrarr~odate an ccoraorr7ically vialaVe reuse unless they are assembled tagether as one site, In additican, the gas station parcel requires additional enviroramerata] rernediation. 'li'he gas station has sat vacant Po'° at Neast sax years without any proposall for private developrrrent or use. l-iistoricalNy, site acquisition, preparation, and public 'irnproveraaent costs ire the downtova^ra area have made redeveloprr~ent infeasible vwithout tax increrr~ent assistance. '~l~he developer's bank., Marshall and! llsley lank of ~ diraa, MGinr~esota, has indicai:ed in the attached ]~eiter tlaai their firaaneia] participation as lr°st mortgage lender is contingent upon the availability of tax increment from f~istrict 4-14. To make the pro~pect financia9ly feasible, the developer is also defe'°ring his up- front developer fee. '7`laerefare, the Oity reasora~~ly expects that no other development of'sirnilar scope is anticipated on dais site without substantially similar assistance being prcavided to tlae development, 7"hc estimate of rnarkt value increase evithout `I"lt° is less than 1,(J6~,°7?3. ",. ~~_a ~.. Cornerstone Commons ~~ \_~ .Updated: 30 June 2005 SOURCES Owner Equity Bank Loan (1) EDA Downtown Loan Storefront Grant Sign & Awning Grants Other TOTAL Developer Fee GRAND TOTAL USES TIF Reimburse $325,000 General Conditions $144,000 $1,650,000 Site Work $135,847 $135,847 $130,000 Concrete Work $66,889 $5,000 Masonry $263,417 $8,000 Metals $301,000 $7.000 Mechanical /Electrical $270,040 Other Hard Costs 273 102 $2,125,000 Total Hard Costs $1,454,295 5$ 0.000 .Architect Fee /Builder's Fee $178,161 $2,175,000 Contingency (2) $84,044 ? Construction Cost Interest (3) $45,000 Bank Fees/Legal/Appraisal, etc. 3$ 3.500 Total Soft Costs $340,705 Rix Property Purchase $146,000 $96,000 Quade Property Purchase $156,000 $156,000 Fantastic Sam's Finish Out $28,000 Total Protect Costs 2125 000 Non-Funded Developer Fee $50,000 TOTAL PROJECT COST 52,175,000 5387,847 NOTES (1) Includes TIF -Bank in essence is "fronting" the TIF dollars; TIF to be assigned to the bank. (2) 5°k of Hard Costs (3) Construction costs interest based on 7.75°h with estimated 50% of project outstanding for 6 months (4) Land acquisition, demolition 8 site work reimbursable via Tax Increment Financing N~1 Marshall ~ Ilsley Bank • 3905 West 69th Street/Edina, MN 55435lrel 612 904-8900 www.mibank.com July 21, 2005 Hutchinson Economic Development Association Attn: Miles Seppelt 111 Hassan Street SE Hutchinson, MN 55350 RE: Tax Incremental Financing Proceeds Deaz Miles Seppelt, This letter is to inform you and the Hutchinson Economic Development Association that M&I Mazshall &Ilsley Bank's financing commitment to Cornerstone Commerce, LLC dated July 12, 2005 for the new commercial development project in downtown Hutchinson is contingent upon the availability of Redevelopment Tax Incremental Financing. Furthermore, all proceeds from the Tax Incremental Financing for this project must be assigned directly to M&] Marshall &Ilsley Bank. If there are any questions or concerns regazding this matter please do not hesitate to contact me directly at 612.798.3486 or Tom Gasser at 612.798.3261. Sincerely, ~..-'_ Andrew Fritz Business Banking Officer M&I Marshall &Ilsley Bank • c~(~ RESOLUTION NO. 12795 RESOLUTION UPDATING BUSINES SUBSIDIES CRITERIA WHEREAS, Minnesota Statutes, Sections 116J.993 through 116J.995 (hereafter refen•ed to as "the Statutes") as amended, require the updating of previously adopted criteria for the granting of business subsidies as defined in the Statutes, and; WHEREAS, the Hutchinson Community Development Commission, an Economic Development Authority, has determined that it is necessary and proper to update the city's business subsidies criteria pursuant to the Statutes, and; WHEREAS, the Economic Development Authority has performed all actions required by law prior to the approval and adoption of the proposed business subsidy policy, including the holding of a public hearing upon published notice, as required by law, on August 23'x, 2005; • THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA, That the Business Subsidy Criteria contained in Exhibit "A" of this resolution aze hereby adopted and shall be on file at the office of the Hutchinson Community Development Commission. Adopted by the City Council this 23'~ day of August, 2005. ATTEST: Gary D. Plotz City Administrator U Steven W. Cook Mayor ~c~~ C~ Exhibit "A" • • c~~> City of Hutchinson Business Subsidy Policy • Public Hearing Held Policy Adopted August 23, 2005 ~c~~ I. Introduction This Policy is adopted for the purposes of the business subsidies act (the "Act"), which is Minnesota Statutes, Sections 1167.993 through 1167.995, as amended. Terms used in this Policy are intended to have the same meaning as used in the Act, and this Policy shall apply only with respect to subsidies granted under the Act if and to the extent required thereby. While it is recognized that the creation of good paying jobs is a desirable goal that benefits the community, it must also be recognized that not all projects assisted with business subsidies derive their public purposes solely by virtue of job creation. In addition, the imposition of high job creation requirements and high wage levels may be unrealistic and counter-productive in the face of larger economic forces and the financial and competitive circumstances of an individual business. The City further believes that each economic development opportunity offers its own unique benefit to the community whether it be retail, commercial or industrial in nature. These benefits may be in the form of added tax base, new or retained jobs, higher incomes, overall investment in the area, business diversification and / or increased economic activity and vitality. The Hutchinson Economic Development Authority was established in order to promote job creation, redevelopment and investment in the community as well as to expand the city's tax base and diversify the city's industrial, commercial and retail base. To effectively promote economic development within the city, be competitive vis-a-vis other communities and meet the diverse needs of business and industry, the EDA must have use of all the economic development incentives and tools legally available to it. The use of these incentives and tools cannot be judged nor can they be provided by a single measure, but must rather be evaluated in terms of community need, market trends, job creation, capita] outlay and / or technology. II. Intent to Retain Flexibility Because it is not possible to anticipate every type of project that may provide benefit to the City, the City shall retain the option to amend or waive sections of this policy when it is determined to be necessary and / or appropriate. Minnesota Statute 1167.994, Subd. 2 allows the City to deviate from its criteria by documenting in writing the reason for the deviation and attaching a copy of the document to its next annual report to the State. III. Business Subsidy Public Purpose Business Subsidies shall be provided in order to achieve the following public purposes: 1. Enhance the economic diversity of the city 2. Create high quality job growth z c~c.~~ 3. Provide forjob retention • 4. Stabilize the community 5. Increase the tax base This policy is adopted in compliance with M.S. § 1167.994 Subd. 2. IV. Definitions "JOBZ Business Subsidy" means tax exemptions or tax credits available to a qualified business located in a job zone under the Job Opportunity Building Zone (JOBZ) statute M.S. §§ 469.310 - 469.320. JOBZ Business Subsidies shall include: 1. Exemption from individual income taxes as provided under M.S. § 469.316; and 2. Exemption from corporate franchise taxes as provided under M.S. § 469.317; and 3. 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 4. 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 5. Exemption from the property tax as provided in M.S. § 272.02, subdivision 64; and • 6. Exemption from the wind energy production tax under M.S. § 272.029, subdivision 7; and 7. The jobs credit allowed under M.S. § 469.31.8. "Business Subsidy" means a state or local government agency grant, contribution of personal property, real property, infrastructure, the principal amount of a loan at rates below those commercially available to the recipient, any reduction or deferral of any tax or any fee, any guarantee of any payment under any loan, lease, or other obligation, or any preferential use of government facilities given to a business, and as defined by the Business Subsidy statute M.S. §§ 1167.993 - 1167.995. Business Subsidies do not include the following: 1. Assistance of less than $25,000. 2. Business loans or loan guazantees of $75,000 or less 3. Federal loan funds provided through the U.S. Economic Development Administration. 4. Assistance that is generally available to all businesses or to a general class of similar businesses, such as a line of businesses, size, location or similar general criteria; 5. Public improvements to buildings or lands owned by the City of Hutchinson that serve a public purpose and do not principally benefit a single business or defined group of businesses at the time the improvements aze made; n LJ ~(~~ 6. Property polluted by contaminants being redeveloped as defined in M.S. § 116J.552, subd. 3. . 7. Assistance provided for the sole purpose of renovating old or decaying building stock or bringing it up to code and assistance to designated historic preservation sites or districts, provided that the assistance is equal to or less than 50% of the total cost of the development; 8. Assistance to provide job readiness and training services; 9. Assistance for housing; 10. Assistance for pollution control or abatement, including assistance from a TIF hazardous substances subdistrict; 11. Assistance for energy conservation; 12. Tax reductions resulting from conformity with federal tax law; 13. Workers compensation and unemployment compensation; 14. Benefits derived from regulation; 15. Indirect benefits derived from assistance to educational institutions; 16. Funds from bonds allocated under M.S., Chapter 47A refunding bonds and 501(c)(3) bonds; 17. Assistance for collaboration between a Minnesota higher education institution and a business; 18. Assistance from a tax increment financing soils condition district as defined under M.S.469.174, subd.l9; 19. Redevelopment when the Recipients or Qualified Business' investment in the purchase of the site and in site prepazation is 70 percent or more of the assessor's current years estimated market value; • 20. Genera] changes in tax increment financing ]aw and other general tax law changes of a principally technical nature; 21. Federal assistance until the assistance has been repaid to and reinvested by the local governmental unit; 22. Funds from dock or wharf bonds issued by a seaway port authority; "Business Subsidy Report" means the annual reports submitted each yeaz for each business receiving a business subsidy in the community. The report is submitted by the local government unit in order to comply with M.S. § ] 16J.994 Subd. 7. (b). "Criteria" means the equitably applied, uniform standards by which the Economic Development Agency and /or the City bases its decision to award any business subsidy to a private business or development project establishing a business and creating jobs in the City of Hutchinson. "DEED" means Minnesota Department of Employment and Economic Development. "Economic Development Agent" means the city department, local or regional economic development agency or other authorized entity that is empowered to solicit, negotiate and form business subsidy agreements on behalf of the City of Hutchinson. The Economic Development Agent for the City of Hutchinson shall be the Economic Development Authority (EDA) Board of Directors, hereinafter "Agent". • 4 l0 ls~~ "Operation Start Date" shall mean the date by which the business begins is operations in the • zone as evidenced by constructing a facility or relocating to an existing building and beginning revenue generating operations and / or hiring employees. "Qualified Business" means an legal entity that carries on a trade or business within a Job Opportunity Building Zone as referenced in M.S. § 469.310 Subd. 11; and complies with the reporting requirements specified by M.S. § 469.313 Subd. 2. (5); and shall comply with the job and wage criteria established by this policy and shall also mean "Recipient" as defined by Business Subsidy law. "Recipient" means any business entity that receives a business subsidy as defined by M.S. § 1167.993, and that has signed a Business Subsidy Agreement with a city. "Relocating Business" A business relocating from another Minnesota non-JOB Zone location. "Relocation Agreement" means a binding written agreement between a relocating qualified business and the commissioner of DEED pledging that the qualified business shall either: (a) increase full-time or full-time equivalent employment in the first full yeaz of operation within the Job Opportunity Building Zone by at least 20 percent, or (b) make a capital investment on the property equivalent to 10% of the gross revenues of the operation that was relocated in the immediately preceding taxable year; and provides for repayment of all tax benefits if the requirements of (a) or (b) are not met. • "Subzone" means the pazcel or pazcel of land designated by the Commissioner of Employment and Economic Development within a Job Opportunity Building Zone within the boundaries of Hutchinson to receive certain tax credits and exemptions specified under M.S. § 469.310- 469.320. "Zone" means a Job Opportunity Building Zone or an Agricultural Processing Facility Zone designated by the commissioner of Employment and Economic Development under M.S. § 469.314. V. Business Subsidy Policies and Requirements The City of Hutchinson adopts the following: Any time the City of Hutchinson provides a business subsidy to a Qualified Business or Recipient, that business is subject to the wage levels, job creation and other criteria set forth in this policy and specified in the Business Subsidy Agreement made with the city. In the everit of a conflict between the requirements of the Business Subsidy statute M.S. §§ 1167.993 - ] 167.995 and the JOBZ statute M.S. §§ 469.310 - 469.320, the JOBZ statute shall supersede. C~ ~c~~ 2. Job Creation & Wage Guidelines • Assistance maybe provided as follows: Pro'ect T e Retail Commercial Industrial 1 FT or FTE for Job Creation At ]east 1 FT or At ]east 2 FT or FTE each $25,000 in Goal FTE assistance provided. At least 100% of At least 125% of At ]east 175% of Wage Goal Federal Minimum Federal Minimum Federal Minimum Wage ($5.15 / hr.) Wage ($6.44 / hr) Wage ($9.01 / hr) 3. The City of Hutchinson may deviate from the wage and job criteria in this section by documenting the reason in writing for the deviation and attaching a copy of this reason to the next annual Business Subsidy Report submitted to DEED. 4. The qualified business that received JOBZ tax benefits shall be identified in the Business Subsidy Agreement as one of the following: • a. Trade or business located and operating in a JOBZ at the time of Zone designation; or, b. Business start-up located within the sub-zone; or, c. Business expanding in the subzone which is a business that maintains its current operations in its present location and is expanding its operations and its payroll within the City of Hutchinson sub-zone; or, d. Business relocating from another state; or, e. Business relocating from another Minnesota non-Zone location (specifying the City). 5. The City of Hutchinson authorizes the Economic Development Authority to act as its Economic Development Agent for purposes of marketing the city, initiating & negotiating Business Subsidy Agreements, and executing Business Subsidy Agreements on its behalf. 6. A public hearing shall be held by the City of Hutchinson as provided by M.S. § 116J.994, when the value of the subsidy exceeds or is expected to exceed $100,000 from local sources. The purpose of the hearing is to identify and define the criteria that the qualified business or recipient shall meet in order to be eligible to receive a business subsidy or n U 6/ ~`~ become a "Qualified Business" for purposes of the 7OBZ statute. The hearing shall • specify all information required to be included in the Business Subsidy Agreement as listed in section 7 (a) (below). As provided by M.S. 1167.994, Subd. 5., a public notice shall be published in print and if possible, on the internet, at ]east 10 days prior to the hearing identifying the location, date, and time of the hearing and providing information about the business subsidy proposed, including a summary of the terms of the subsidy. 7. Requirements of Businesses a. The business must enter into a "Business Subsidy Agreement" with the City that includes: (1) A description of the subsidy, including the amount and type of subsidy, and the type of district if the subsidy is tax increment financing; (2) A statement of the public purpose(s) of the subsidy; (3) Measurable, specific and tangible goals for the subsidy; (4) A description of the financial obligation of the recipient if the goals are not met; (5) A statement of why the subsidy is needed; • (6) A commitment to continue operations in the jurisdiction where the subsidy is used for at least five years after the benefit date, or in the case where 7OBZ tax benefits aze provided, for the duration of the lob Zone term; (7) The name and address of the pazent corporation of the recipient, if any; and, (8) A list of all financial assistance by all grantors for the project b. Businesses failing to meet the goals agreed to in the Business Subsidy Agreement must repay the assistance provided with interest, which is set at no less than the implicit price deflator as defined in the Business Subsidy Statute, M.S. §§ 1167.993 - 1167.995. Repayment may be prorated to reflect partial fulfillment of goals. c. If the business is locating in a JOBZ zone and the qualified business is a relocating business under the definition provided in this policy, the business shall also be required to enter into a "Relocation Agreement" between the qualified business and the commissioner of DEED pledging that the qualified relocating business shall: (1) Increase full time employment by 20% (measured relative to the operations that were relocated) within the first full taxable year of operation within the Zone and maintains the required level of employment during each year of zone designation; • 7 ~.ol'~~ OR • (2) Make a capital investment in the Zone equivalent to at least 10% of gross revenues for the taxable year immediately preceding relocation to the Zone. AND (3) Report to DEED if the business will: Cease one or more operations or functions at a non-Zone location and begin performing substantially the same functions inside the Hutchinson Zone; and / or, 2. Reduce employment at the non-Zone location starting one year before and ending one year after beginning operations in the Zone where its employees in the Zone aze engaged in the same line of business as the employees at the location where it reduced employment; and, (4) Identify the date when operations are planned to begin in the JOB Zone. Adopted by the Hutchinson Community Development Commission, an Economic Development Authority, on July 22, 2005. • Public hearing held and policy adopted by the Hutchinson City Council on August 23, 2005. • ~D l~Jf Ire u Memo To: Mayor and City Councl From: Erin Eberdt, Economic Development Authority Assistant CC: Gary Plotz, City Administrator Date: July 12, 2005 Re: Request to authorize Job Opportunity Building Zone (JOBZ) tax exemptions On behalf of the Economic Development Authority, I am submitting a request to the City Council to approve JOB OPPORTUNITY BUILDING ZONE (JOBZ) TAX EXEMPTIONS. The Job Opportunity Building Zone (the "JOBZ") Program was created in Minnesota Session Laws 2003 to allow for the formation of tax free zones to stimulate economic development • activity in Greater Minnesota. There are currently 10 zones with over 29,000 acres in 325 sub zone communities in Minnesota. These zones are tax-free zones that provide incentives for businesses to start up, expand, or relocate to a specific designated area. The incentives were created for a maximum duration of 12 years beginning January 1•`, 2004. Incentives include: o Local and state exemptions such as... • Corportate franchise tax • Income tax for operators and investors • Sales tax on business purchases • Capital gains tax • Property tax (except for land, general obligation bonds, and school operating levies in place prior to zone designation) o Authorize employment tax credit for high- paying jobs Currently, the City of Hutchinson is not part of the JOBZ program, however, staff has contacted other cities to donate a portion of their JOBZ designated acres. Two cities have agreed to donate acres, thus city staff has to submit an application for tax free zone designation to the Minnesota Department of Employment and Economic Development. Therefore, is is requested that the City of Hutchinson adopt a resolution to approve the inclusion of the new acreage designated as a JOBZ Zone. Thank you for your consideration of this matter. If you have any questions, please #eel free to contact me at (320) 234-5652. C~ • Page t ~~b~ RESOLUTION NO. 12790 RESOLUTION OF APPROVAL TO AUTHORIZE JOB OPPORTUNITY BUILDING ZONE (JOBZ) TAX EXEMPTIONS WHEREAS, the City of Hutchinson is not currently a participant in the Job Opportunity Building Zone (JOBZ) program; and, WHEREAS, the JOBZ program provides an important economic development tool for cities; and, WHEREAS, it is essential that the City of Hutchinson have available to it all the economic development tools provided for by statute; and, WHEREAS, the Job Opportunity Building Zone (the "JOBZ") Program created in Minnesota Session Laws 2003, 1~` Special Session, Chapter 21, Article ]allows for the formation of tax free zones; and WHEREAS, an application for tax free zone designation in the City has been prepared and will be submitted to the Minnesota Deparhnent of Employment and Economic Development; and WHEREAS, the City of Hutchinson will undergo a subzone modification process with several donor cities to receive JOBZ designation and recognition with the Minnesota • Deparment of Employment and Economic Development; THEREFORE BE IT RESOLVED, that the City Council, upon careful consideration and review, authorizes and directs city staff to proceed with the Subzone Modification Process, and approves the use of tax exemptions and tax credits within the designated zones (subject to proper review and approval by the Economic Development Authority and the City Council), and requests that the Minnesota Department of Employment and Economic Development approve JOBZ designation for the City of Hutchinson. BE IT FURTHER RESOLVED, that the City agrees to provide al] of the local tax exemptions and credits required and provided for by the JOBZ statute and agrees to forego the tax benefits resulting from the local and state tax exemption and credits provided for by the JOBZ Legislation. Adopted by the City Council this _ day of , 2005. ATTEST: Gary D. Plotz City Administrator n lJ Steven W. Cook Mayor ~c~ ~_. Crrgof City of Hutchinson, Minnesota Pre-Sale Report August 23, 2004 U Proposed Issue: $2,790,000 General Obligation Sewer and Water Revenue Bonds, Series 2005C Purpose: The bonds will finance the purchase of equipment for the wastewater treatment plant and water system improvements related to the construction of Golf Course Road and Washington Avenue West. Term: Funding Sources: Schedule: Ehlers Contacts: Attachment: The bonds will have a term of 10 years. The bonds will be repaid with revenue from the water and sewer funds. City Council Pre-Sale Review: Distribute Official Statement: Rating Agency Interview Bond Sale: August 23, 2005 Week of September 6 Week of August 30 September 13, 2005 Awarded at regular City Council meeting. Estimated Closing Date: October 4, 2005 Financial Advisors: Steve Apfelbacher(651) 697-8510 Jessica Cook (651) 697-8546 Bond Analysts: Diana Lockard (651) 697-8534 Debbie Holmes (651) 697-8536 Bond Sale Coordinator: Connie Kuck (651) 697-8527 Resolution authorizing Ehlers to proceed with bond sale The O~cial Statement for this financing wilt be mailed to the Council Members at their home address for review prior to the sale date j EAH L,EER,S Ica) Resolution No. 12797 • Council Member introduced the following resolution and moved its adoption: Resolution Providing for the Sale of $2,790,000 General Obligation Sewer and Water Reveuue Bonds, Series 2005C A. WHEREAS, the City Council of the City of Hutchinson, Minnesota, has heretofore determined that it is necessary and expedient to issue the City's $2,790,000 General Obligation Sewer and Water Revenue Bonds, Series 2005C (the "Bonds"), to finance certain public improvements; and; B. WHEREAS, the City has retained Ehlers & Associates, Inc., in Roseville, Minnesota ("Ehlers"), as its independent financial advisor for the Bonds and is therefore authorized to solicit proposals in accordance with Minnesota Statutes, Section 475.60, Subdivision 2(9); NOW, THEREFORE, BE IT RESOLVED by the City Council of Hutchinson, Minnesota, as follows: 1. Authorization; Findines. The City Council hereby authorizes Ehlers to solicit proposals for the sale of the Bonds. 2. Meetina• ProQosal Opening. The City Council shall meet at City Hall on September 13, 2005, for the purpose of considering sealed proposals for and awarding the sale of the Bonds. 3. Official Statement. In connection with said sale, the officers or employees of the City aze 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 City upon its completion. The motion for the adoption of the foregoing resolution was duly seconded by Council Member and, afrer full discussion thereof and upon a vote being taken thereon, the following Council Members voted in favor thereof: and the following voted against the same: Whereupon said resolution was declared duly passed and adopted. Dated this day of , _. City Clerk Prepared by Ehlers & Associates, Inc. 9~~) M ~~f City of Hutchinson, Minnesota Pre-Sale Report August 23, 2004 Proposed Issue: $3,055,000 General Obligation Improvement Bonds, Series 2005A Purpose: The bonds will finance the 2005 capital improvement projects and the downtown streetscaping projects. Term: I S year bonds. The downtown project will be amortized over 15 years, and the other projects will be amortized over a shorter period of time. Funding Sources: Special assessments and property tax levy. Approximately 42% of the bonds will be repaid with special assessments levied against the benefiting properties. The downtown streetscaping project will be assessed over 15 years. The other projects will be assessed over ten years. . The projects financed with this issue aze: Pro'ect Descri lion OS-O1 Road reconstruction for the NC Trunk Sanita Sewer OS-04 Downtown Streetsca e OS-OS Washin on Avenue W. (Maint St. to Franklin St.) OS-07 Michi an Street (TH 7 & to 5°i Avenue SE OS-OS Maint. of RR Crossin sand Bituminous -various locations OS-09 2° Avenue SW (Lake St. SW to Dale St. SW) OS-] 0 Golf Course Road NW (assessed onion of ro'ect on] ) OS-12 Plaza 15 Pazkin Lot OS-17 Rollin Meadows Eastlst Schedule: City Council Pre-Sale Review: Distribute Official Statement: Rating Agency Interview Bond Sale: Estimated Closing Date: August 23, 2005 Week of September 6 Week of August 30 September 13, 2005 Awarded at regular City Council meeting. October 4, 2005 ~ (~~ Ehlers Contacts: Financial Advisors: Steve Apfelbacher(651) 697-8510 Jessica Cook (651) 697-8546 Bond Analysts: Diana Lockard (651) 697-8534 Debbie Holmes (651) 697-8536 Bond Sale Coordinator: Connie Kuck (651) 697-8527 • Attachment: Resolution authorizing Ehlers to proceed with bond sale The Official Statement jor this financing will be mailed to the Council Members at their home address for review prior to the sale date FREERS 6 ASSOCIATES INC • Prepared by Ehlers & Associates, Inc. 9~b~ • Resolution No. 127 98 Council Member introduced the following resolution and moved its adoption: Resolution Providing for the Sale of $3,055,000 General Obligation Improvement Bonds, Series 2005A A. WHEREAS, the City Council of the City of Hutchinson, Minnesota, has heretofore determined that it is necessary and expedient to issue the City's $3,055,000 General Obligation Improvement Bonds, Series 2005A (the "Bonds"), to finance certain public improvements; and; B. WHEREAS, the City has retained Ehlers & Associates, Inc., in Roseville, Minnesota ("Ehlers"), as its independent financial advisor for the Bonds and is therefore authorized to solicit proposals in accordance with Minnesota Statutes, Section 475.60, Subdivision 2(9); NOW, THEREFORE, BE IT RESOLVED by the City Council of Hutchinson, Minnesota, as follows: 1. Authorization; Findines. The City Council hereby authorizes Ehlers to solicit proposals for the sale of the Bonds. • 2. Meetine~ Proposal Openine. The City Council shall meet at City Hall on September 13, 2005, for the purpose of considering sealed proposals for and awarding the sale of the Bonds. 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 City upon its completion. The motion for the adoption of the foregoing resolution was duly seconded by Council Member and, afrer full discussion thereof and upon a vote being taken thereon, the following Council Members voted in favor thereof: and the following voted against the same: Whereupon said resolution was declared duly passed and adopted. Dated this _ day of , City Clerk • Prepared by Ehlers & Associates, lnc. a~~~ °f • City of Hutchinson, Minnesota Pre-Sale Report August 23, 2004 • C Proposed Issue: $700,000 General Obligation MSA Anticipation Bonds, Series 2005B Purpose: The bonds will finance the City's state aid portion of the Golf Course Road NW Project. Term: The bonds will have a term of 4 years. Funding Sources: Golf Course Road NW is a Minnesota State Aid (MSA) Road. The cost of construction will be repaid with future receipts of annual MSA funding awards. Additional portions of the project are being assessed to benefiting property owners and paid from the City's water fund. Schedule: City Council Pre-Sale Review: Distribute Official Statement: Rating Agency Interview Bond Sale: August 23, 2005 Week of September 6 Week of August 30 September 13, 2005 Awarded at regular City Council meeting. Ehlers Contacts: Estimated Closing Date: October 4, 2005 Financial Advisors: Steve Apfelbacher(651) 697-8510 Jessica Cook (65 ]) 697-8546 Bond Analysts: Diana Lockard (651) 697-8534 Debbie Holmes (651) 697-8536 Bond Sale Coordinator: Connie Kuck (651) 697-8527 Attachment: Resolution authorizing Ehlers to proceed with bond sale The Official Statement for this financing will be mailed to the Council Members at their home address for review prior to the sale date FREERS & ASSOCIATES INC a(G~ Resolution No. 12799 . Council Member introduced the following resolution and moved its adoption: Resolution Providing for the Sale of $700,000 General Obligation MSA Aniticpation Bonds, Series 2005B A. WHEREAS, the City Council of the City of Hutchinson, Minnesota, has heretofore determined that it is necessary and expedient to issue the City's $700,000 General Obligation MSA Anticipation Bonds, Series 2005B (the "Bonds"), to finance certain public improvements; and; B. WHEREAS, the City has retained Ehlers & Associates, Inc., in Roseville, Minnesota ("Ehlers"), as its independent financial advisor for the Bonds and is therefore authorized to solicit proposals in accordance with Minnesota Statutes, Section 475.60, Subdivision 2(9); NOW, THEREFORE, BE IT RESOLVED by the City Council of Hutchinson, Minnesota, as follows: 1. Authorization; Findings. The City Council hereby authorizes Ehlers to solicit proposals for the sale of the Bonds. 2. Meeting; Proposal Opening. The City Council shall meet at City Hall on September 13, 2005, for the purpose of considering sealed proposals for and awarding the sale of the Bonds. 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 City upon its completion. The motion for the adoption of the foregoing resolution was duly seconded by Council Member and, after full discussion thereof and upon a vote being taken thereon, the following Council Members voted in favor thereof: and the following voted against the same: Whereupon said resolution was declared duly passed and adopted. Dated this day of , _• City Clerk • Prepared by Ehlers & Associates, Inc. ~c~~ County of McLeod State of Minnesota City of Hutchinson Resolution No. and Township of Lynn JOINT RESOLUTION OF THE CITY OF HUTCHINSON AND THE TOWNSHIP OF LYNN AS TO THE ORDERLY ANNEXATION OF PROPERTY WHEREAS, the City of Hutchinson ("City°) and the Township of Lynn ("Township") desire to enter into an agreement allowing for the orderly annexation of certain property, pursuant to Minnesota Statute 414.0325, Subdivision 1; and WHEREAS, the City and the Township are in agreement concerning the annexation of the property identified in Exhibit A (also identified as the staged growth plan attached as a map); and WHEREAS, the area identified was based on the Ciry's capacity to provide sewer services to areas; WHEREAS, it is in the best interest of the City, the township and their respective residents to agree to an orderly annexation in furtherance of orderly growth and the protection of the public health, safety and welfare; and WHEREAS, the parties hereto desire to set forth the terms and conditions of such orderly annexation by means of this Resolution; NOW, THEREFORE, BE IT RESOLVED by the City of Hutchinson, McLeod County, Minnesota, that the following terms, conditions and agreements shall become binding upon the City and the Township: 1. Upon approval by the respective governing bodies of the City and the Township, this joint resolution shall confer jurisdiction upon Minnesota Planning -Municipal Boundary Adjustments (hereinafter "Minnesota Planning") to accomplish the orderly annexation of the lands described in the attached Exhibit A in accordance with the terms of this joint resolution. 2. Pursuant to Minnesota Statutes 414.0325, subdivision 1, the parties do hereby designate the area described in the attached Exhibit A as an Orderly Annexation Area in need of orderly annexation. The described Orderly Annexation Area consists of approximately 1427 acres. q(d~ • Orderly Annexation Agreement Lynn Township Resolution No. Page 2 • 3. The City covenants and agrees that it will preserve the drainage functions of all drain tiles located within the Orderly Annexation Area by designing and constructing a municipal storm sewer system and allocating the costs thereof as described in this resolution, to the extent that the future development of properties within the Annexation area shall not significantly adversely impact existing drainage in the areas of the Township outside the orderly Annexation Area as such drainage exists at the time of the signing of this agreement. 4. For all property annexed pursuant to this Joint Resolution, the City shall remit to the Township, property taxes as follows: ~, a. Property taxes payable on the annexed area for the year in which the annexation becomes effective shall be paid to the Township. Thereafter, property taxes shall be paid to the city but shall be apportioned as listed below, and the City shall make a cash payment to the Township yearly in the following amounts: • 1. In the first year following the year in which the land was annexed, 95% of the property taxes paid to the Township in the year the land was annexed; 2. In the second year following the year in which the land was annexed, 85% of the property taxes paid to the Township in the year the land was annexed; 3. In the third year following the .year in which the land was annexed, 65% of the property taxes paid to the Township in the year the land was annexed; 4. In the fourth year following the year in which the land was annexed, 45% of the property taxes paid to the Township in the year the land was annexed; 5. In the fifth year following the year in which the land was annexed, 25% of the property taxes paid to the Township in the year the land was annexed. • b. Thereafter all property taxes from the described property shall be paid to the City. 4Ld) • Orderly Annexation Agreement Lynn Township Resolution No. Page 3 6. This Joint Resolution may be amended from time to time by the • City and the Township upon such terms as are mutually acceptable to the parties. 7. The City and the Township mutually state that no alteration by Minnesota Planning to the boundaries as described on Exhibit A ("the orderly annexation area") is appropriate or permitted. 8. Having designated the area described on Exhibit A as in need of orderly annexation, and having provided for all of the conditions of its annexation within this document, the parties to this agreement agree that no further consideration by Minnesota Planning is necessary. As such, Minnesota Planning may review and comment, but shall, within thirty (30) days of the date of receipt of this Joint Resolution for Orderly Annexation, order the immediate annexation of the properties and land described in the attached Exhibit A in accordance with the terms of this Joint Resolution. ADOPTED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON THIS DAY OF , 2005 ADOPTED~Y THE f`~ n ri TOWNSHIP OF k 5 Steven W. Cook Mayor Gary D. Plotz City Administrator BOARD THIS ~ DAY Chair ~.~n .Township i Clerk ~Y~r? Township 9 (d) Orderly Annexation Agreement Lynn Township Resolution No. Page 4 Exhibit A The NE 1/4 and SE 1/4 of Section 3, T116N, R30W. East 1/2 of Section 10, T116N, R30W. The W 1/2 of NW 1/4 of Section 2, T116N, R30W. The N 1/2 of the NE 114 of Section 15, T116N, R30W. The NW 1!4 of the NW 1/4 of Section 14, T116N, R30W. Section 11, T116N, R30W. ' The SW 1/4 of Section 12, T116N, R30W. The N 1/2 of the NW'/s of Section 13, T116N, R30W. r1 LJ • 9(d~ C a Hutchinson City Center 111 Hassan Street SE Hutchinson, MN 55350.2522 320-587-5151/Fax 320.234.4240 M I: ~ (7- ~ N I~ ~7 M TO: Mayor and City Council FROM: John Rodeberg, Director of Public Works Dan Hatten, Director of PoliceBmergency Services RE: Consideration of Resolution Establishing Location of Traffic Control Devices DATE: August 16, 2005 Attached is a resolution setting the location for several traffic control devices: 1: Wa1Mart The traffic control in the Wa1Mart azea is a little convoluted due to where public streets aze • versus private driveways and entrances. We currently prioritize the public streets, however, this is not always intuitive to the public. These proposed changes will provide signage more closely matched to traffic patterns, and will no longer prioritize the public streets. 2 through 6: Subdivisions "Stop" signs are being added within several subdivisions: Kottke Court, Southfork Ridge and Southwind. 7: State Theater area Relocates the current handicap stall just west on the State Theater to right in front of the building, and ads an additional stall. This proposal was brought to us by the property owner of the State Theater in an effort to prevent trucks from parking (and potentially damaging) near the marquee. It also provides added access for handicap to the Theater. We have reviewed the resolution with the Police, Engineering and Street Departments, and recommend approval. cc: Gary Pto[z -City Administrator Kent Exner - CiTy Engineer • Jahn Olson-Public Works Superintendent Fnmetl on rerycied paper- ~ /~~ RESOLUTION NO.12789 ' RESOLUTION ESTABLISHING LOCATION FOR TRAFFIC CONTROL DEVICES WHEREAS, the I}irector of Public Works and the Police Chief agree that the following areas have traffic control concerns which warrant traffic control devices, and; WHEREAS, the Hutchinson City Council has the authority to establish locates as points where traffic control devices. shall be erected, pursuant to Section 7.04, Subdivision 1 of the Hutchinson City Code; NOW, THEREFORE, BE IT' RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON: That the Council hereby establishes the following traffic control devices: 1. "STOP " signage shall be installed at the intersection of Atlanta Ave SW and the western portion of Boston St SW. Existing "STOP" signs shall be removed along the western portion of Boston St SW, ' south of its intersection with Century Ave SW. "STOP" signage shall be placed on the eastern portion of Boston St SW at its intersections with Atlanta Ave SW and Baltimore Ave SW. Existing "STOP" signs shall be removed along the western portion of Baltimore Ave SW, west of its intersection with the eastern portion of Boston St SW, except that "STOP" sign at the intersection of the roadway aligned with the western portion of Boston St SW. This is the area around the northeast corner of the Wa]-Mart store. 2. "STOP" signage shall be installed on Kottke Ct SE at its intersection with Jefferson St SE. 3. "STOP" signage shall be installed on Southfork Dr SE at its intersection with Jefferson St SE. 4. "4-WAY STOP" signage shall be installed on Edmonton Ave SE at its intersection with Jefferson St SE. 5. "STOP" signage shall be installed on Toronto Blvd SE at its intersection with Jefferson St SE. 6. "STOP" signage shall be installed on Calgary Ln SE at its intersection with Edmonton Ave SE. 7. "Handicap Parking" signage shall be installed for two spaces just east of the alley in front of 35 Washington Avenue East (State Theater), and the sign just west of the alley shall be removed. And, that all existing traffic control devices conflicting with this resolution be removed. Adopted by the City Council this 23's day of August, 2005. Steven W. Cook Mayor ATTEST: Gary D. Plotz City Administrator 1:1PUBLIC WORKSIResoW0onslTRAfrIClTrafCo4809.23-0S.tla gce~