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cp08-28-1984 cHUTCH INSON CITY CALENDAR WEEK OF SEPTEMBER 2T 0 SEPTEMBER 8 Q //�� r .{ 984 1 WEDNESDAY -s -. SUNDAY _Z THURSDAY -6- MONDAY -3- LABOR DAY FRIDAY -7- TUESDAY* -4- 9 a.m. Swearing In Ceremony Ted Beatty - Hutch Utilities Commission at City Hall SATURDAY AGENDA REGULAR MEETING - HUTCHINSON CITY COUNCIL TUESDAY, AUGUST 28, 1984 1. Call to Order - 7:30 p.m. 2. Invocation - Reverend Larry Baumann 3. Consideration of Minutes - Special Meeting of August 7, 1984 Regular Meeting of August 14, 1984 Bid Opening of August 13, 1984 Bid Opening of August 21, 1984 Action - Motion to approve - Motion to approve as amended 4. Routine Items (a) Reports of Officers, Boards and Commissions 1. Financial Report - July, 1984 2. Planning Commission Minutes - July 17, 1984 (b) Ordinance No. 20/84 Amending Sec. 710:00 of the 1974 Ordinance Code of the City of Hutchinson, Entitled One -Way Traffic Action - Motion to reject - Motion to waive second reading and adopt 5. Public Hearing - 8:00 p.m. (a) Consideration of Issuing Industrial Development Revenue Bonds to Frank Fay Action - Motion to close hearing - (b) Consideration of Issuing Industrial Development Revenue Bonds to F S T Project Action - Motion to close hearing - Motion to reject - Motion to approve Motion- to waive reading and adopt Resolution (c) Consideration of Amending Tax Increment Financing Plan (Dist. 4) Action - Motion to close hearing - Motion to reject - Motion to continue hearing- to-amend scope 'of project (deleting police station project from proposed tax increment plan). COUNCIL AGENDA AUGUST 28, 1984 (d) Consideration of Assessment Rolls 187 and 188 - Mac's Bluff Addition Action - Motion to close hearing - Motion to reject - Motion to approve - Motion.to waive reading and adopt Resolutions �g y3 6. Communications, Requests and Petitions (a) Consideration of Request by Clara Sturges for Senior Citizen Refuse Rate Action - Motion to approve - Motion to reject ibY.- Pres= ntation Regarding Local Access to Cable TV by xAVT1 representatives Larry Frazer and Mike Goede Action - (c) Request for Authorization to Purchase a Mammography Unit for Hutchinson Community Hospital Action - Motion to reject - Motion to approve (d) Reporf on.Anvraisal of Vision Center and Wendorff Property (by Gary Plotz) 7. Resolutions and Ordinances (a) Resolution Amending Parking Regulations for Municipal Off- Street Parking Lots to Allow All -day Parking Permits Action - Motion to reject - Motion to waive reading and adopt Resolution 7840 8. Unfinished Business (a) Consideration of Engineer's Report on Options for Storm Sewer at Goebel Fixture Co. Action - (b) Consideration of Engineer's Report on Meeting in Owatonna Concerning CCBA Process Action - 9. New Business (a) Consideration of Delinquent Water 6 Sewer Accounts ra ,y -2 • r s COUNCIL AGENDA AUGUST 28, 1984 Action - Motion to authorize extension of payment period - Motion to authorize discontinuation of service (b) (ITEM-DELETED) (c) Discussion of Improvements to Hanson Drive (Requested by Floyd Hoel and Myron Tucker) Action - (d'_ Consideration of Engineer's Report for 1985 Public Works Projects Action - Motion to waive reading and adopt Resolution No. 7839 Receiving Report and Calling Hearing on Improvement for September 25, 1984 at 8 p.m. a) Consideration of Subdivision Agreement for Walldr's Second Addition Action - Motion to approve - Motion to reject subdivision agreement (f) Consideration of Bid Opening Date of September 20 at 2 p.m. for Library Project Action (g) Consideration of Activ a ting Deferred Assessment for Bernard C. Brecht Action - Motion to approve - Motion to reject (h) Consideration of Awarding Bids for Two Pickup Trucks Action - (i) Consideration of Reserving 1984 Industrial Revenue Bond Allocation (Presentation by John Bernhagen of Community Development Corp.) Action - (j) Consideration of Authorizing Solicition of Bids for Sale of Structures from LAWCON Grant Project; and in the Alternative to Solicit Bids for Demolition of Said Buildings, with Bid Opening Date September 20, 2 p.m. (Requested by Mike Carls) Action - -3- COUNCIL AGENDA AUGUST 28, 1984 (k) Consideration of Appointing Building Committee for Recreation Facility /Swimming Pool Action - (1) Considerationof Authorizing Building Committee for Recreation Facility /Swimming Pool to Interview Architects and Forward Recommendation to City Council Action - Motion to reject - Motion to approve lei) Consideration of Request for a Sign Variance as Submitted by S &L Rehab with Recommendations by Planning Commission -.ction - Motion to reject - Motion to approve recommendation Consideration of Request for a Variance Submitted by Ken Stapleton with Favorable Recommendation of the Planning Commission Action - Motion to reject - Motion to approve ,a) Co •; ideretion of Preliminary and Final Plat to be Known as "Santelman`s Second Addition" with Favorable Recommendation of 9lanning Commission %, -tion - Motion to reject - Motion to approve r_ o�ideration of Plat to be known as 'Orchard Park First Addition" ' :_' . Favorable Recommendation of Planning Commission Action - Motion to reject - Motion to approve ricideration of plat to be known as Rolling Oaks Fifth Addition .Lth Favorable Recommendation of Planning Commission Action - Motion to reject - Motion to approve (r) Consideration of Preliminary Plat to be known as David Lee Acres submitted by Jim Reid to County with Favorable Recommendation of Planning Commission Action - Motion to reject - Motion to approve (s) Consideration of Preliminary Plat for Peterson Estates submitted to County with Favorable Recommendation of Planning Commission Action - Motion to reject - Motion to approve (t) Consideration of Request for Conditional Use Permit Submitted by James Heikes to County with Favorable Recommendation of Planning Commission Action - Motion to reject - Motion to approve -4- 0 ` s 7 0 COUNCIL AGENDA AUGUST 28, 1984 0 (u) Consideration of Accepting Reimbursement for Out of Town Travel by Police Chief Action - (v) Consideration of Request for Equipment Purchase for Wastewater Plant Action - Motion to reject - Motion to approve and waive reading and adopt Res. 7841 - Resolution to Purchase (w) Consideration of Request for Funds to Complete Information Sign At Fireman's Park Action - Motion to reject - Motion to approve (x) Consideration of Adding or Deleting 1985 Improvement Projects before Notices are Mailed Out Action - 10. Miscellaneous 'a) Communications from City Administrator i. Claims, Appropriations and Contract Payments (a) Verified Claims Action - Motion to approve and authorize payment from appropriate funds 12. Adjournment -5- 1. CALL TO ORDER 6 MINUTES SPECIAL MEETING - HUTCHINSON CITY COUNCIL TUESDAY, AUGUST 7, 1984 The special meeting was called to order by Vice -Mayor Mike Carls at 9:00 P.M., with the following members present: Alderman John Mlinar, Alderman Marlin Tor - gerson, Alderman Pat Mikulecky, and Vice -Mayor Michael Carls. Absent: Mayor Robert H. Steams. Also present: City Administrator Gary D. Plotz and Fi- nance Director Kenneth B. Merrill. 2. RESOLUTION NO. 7825 - RESOLUTION CANVASSING ELECTION RETURNS OF CITY SPECIAL ELECTION HELD, AUGUST 7, 1984 Finance Director Kenneth B. Merrill reported the election returns were in and the recreational facility and outdoor swimming pool referendum had won by a three to one vote. He then presented the election results to the City Council and requested their approval of the canvassing. It was moved by Alderman Mlinar, seconded by Alderman Torgerson, and carried unanimously to waive reading and adopt Resolution No. 7825. 3. RESOLUTION NO. 7826 - RESOLUTION OF APPRECIATION FOR DAVID DOELGER Following discussion, the motion was made by Alderman Mikulecky to waive read- ing and adopt Resolution No. 7826. Alderman Torgerson seconded the motion, and it unanimously passed. 4. CONSIDERATION OF WATERMAIN REMOVAL AT OLD ARMORY SITE Citizens Bank_& Trust Co. reported that a waterm ain crossed the site of the old armory property in an east to west direction on the south end. They re- quested the water main be removed inasmuch as it interfered with development of a new Auto - Bank. It was the recommendation of the City Engineer to abandon the line inplace and cap it in the alley and on Franklin Street. After discussion, Alderman Torgerson moved to approve removal by capping the watermain, with the City Engineer working with Citizens Bank. The motion was seconded by Alderman Mlinar and approved unanimously. 5. CONSIDERATION OF REQUEST FOR TRANSIENT MERCHANT PERMIT A transient merchant permit application was received from Lois Rusley to sell sewing machines August 24-26, 1984. A public sale notice would be placed in the Leader. COUNCIL MINUTES AUGUST 7, 1984 Following discussion, it was moved by Alderman Mlinar, seconded by Alderman Mikulecky, to approve and issue the transient merchant permit. Motion car- ried unanimously. 6. CONSIDERATION OF APPLICATION FOR RETAIL "ON SALE" NON - INTOXICATING MALT LIQUOR LICENSE BY JAYCEES FOR AUGUST 11 AND 17, 1984 After discussion, Alderman Mlinar made the motion to approve and issue license(s) to the Jaycees. The motion was seconded by Alderman Torgerson and approved unanimously. 7. ADJOURNMENT There being no further business, the meeting adjourned at 9:10 P.M. -2- 0 CITY OF HUTCHINSON, MINNESOTA BID OPENING AUGUST 13TH, 1984 2:00 P.M. Called to order at 2:00 P.M. by Kenneth Merrill, City Accountant. Wigen Off- Street Parking Lot, Publication No. 3269. Waived Reading of Advertisement for Bids Opened Bid: J. W. Hanson Construction, Box 353, Hutchinson, MN 55350 $29,046 Plowman Off- Street Parking Lot, Publication No. 3268 Waived Readi,ig of Advertisement for Bids Opened Bid: J. W. Hanson Construction, Box 353, Hutchinson, MN 55350 $36,823 Referred to City Engineer for recommendation to Council. Meeting Adjourned at 2:05 P.M. C(' MINUTES REGULAR MEETING - HUTCHINSON CITY COUNCIL TUESDAY, AUGUST 14, 1984 1. The meeting was called to order by Vice -Mayor Carls at 7:30 p.m. The following were present: Alderman John Mlinar, Alderman Marlin Torgerson, Alderman Pat Mikulecky and Vice -Mayor Michael Carls. Absent: Mayor Robert Stearns. Also present: City Administrator Gary D. Plotz, City Engineer Marlow V. Priebe and City Attorney James Schaefer. 2. INVOCATION The invocation was given by Reverend Larry Bauman. 3. MINUTES Alderman Mikulecky made a motion that the tape recording of item 8(d) of the July 24, 1984, City Council meeting - Discussion of Use of City Vehicle - be entered into the minutes. There being no second to the motion, it failed. Motion was made by Alderman Torgerson and seconded by Alderman Mlinar to approve the minutes as written. Motion carried 3 to 1, with Alderman Mikulecky opposed. 4. ROUTINE ITEMS (a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS 1. Building Official's Report - July 1984 2. Nursing Home Board Minutes dated June 21, 1984 3. Parks and Recreation Board Minutes dated May 2, 1984 and May 30, 1984 There being no discussion, the report and minutes were ordered by the Vice -Mayor to be received for filing. (b) RESOLUTION NO..'7828 - RESOLUTION TO PURCHASE Motion was made by Alderman Mikulecky, seconded by Alderman Torgerson and carried unanimously to waive reading and adopt Resolution No. 7828. (c) RESOLUTION N0. 7829 - TRANSFERRING $20,000 FROM LIQUOR STORE TO GENERAL FUND Motion was made by Alderman Torgerson, seconded by Alderman Mikulecky and carried unanimously to waive reading and adopt Resolution No. 7829. (d) CONSIDERATION OF APPOINTMENT OF MILDRED NELSON TO HRA BOARD Motion was made by Alderman Mlinar, seconded by Alderman Torgerson and carried unanimously to ratify appointment of Mildred Nelson for a 5 year term to the HRA Board. �, COUNCIL MINUTES AUGUST 14, 1984 (e) CONSIDERATION OF RETAIL "ON SALE" NON - INTOXICATING MALT LIQUOR LICENSE FOR MCLEOD COUNTY FAIRGROUNDS BEER GARDEN AUGUST 17 -21, 1984 Motion was made by Alderman Mlinar, seconded by Alderman Torgerson and carried unanimously to approve application and issue license. (f) CONSIDERATION OF APPLICATION FOR LICENSE TO SELL CIGARETTES AT RETAIL BY EASTERN STAR AUGUST 17 -21, 1984 Motion was made by Alderman Torgerson, seconded by Alderman Mlinar and carried unanimously to approve application and issue license. 5. PUBLIC HEARING - 8:00 P.M. (a) ODNS:IDERATION OF ISSUING INDUSTRIAL DEVELOPMENT REVENUE BONDS TO AG SYSTEMS, INC. Vice -Mayor Carls opened the hearing at 8 p.m. City Attorney Schaefer stated that a public hearing was held by McLeod County on August 7, since the project is outside the city limits. He further stated that Ag Systems has submitted all required documents and they have been reviewed and found in order. The issuance of Industrial Development Revenue bonds places no liability on the city, but rather gives tax exempt status to the financing. City Administrator Plotz reported that in the opinion of Charles Bailly & Company, Certified Public Accountants, the company's current position is adequate to support the $600,000 additional debt of the bonds. There was no one present to be heard so the hearing was closed at 8:05 p.m. on a motion by Alderman Torgerson, seconded by Alderman Mlinar and carried unanimously. Motion was made to approve issuing Industrial Development Revenue Bonds to Ag Systems, Inc, and to waive reading and adopt Resolution No. 7830, by Alderman Mlinar. Motion was seconded by Alderman Mikulecky and carried unanimously. (b) ASSESSMENT ROLL NO. 197 - PROJECT NO. 84 -04 Vice -Mayor Carls opened the hearing. There being no one present to be heard, the hearing was closed on a motion by Alderman Torgerson, seconded by Alderman Mlinar and carried unanimously. Motion was made by Alderman Torgerson to approve assessment roll and adopt Resolution No. 7831. Motion seconded by Alderman Mikulecky and carried unanimously. -2- • 0 COUNCIL MINUTES AUGUST 14, 1984 (c) ASSESSMENT ROLL NO. 198 - PROJECT NO. 84 -05 Vice -Mayor Carls opened the hearing. City Engineer Priebe reported that of the total cost of the improvement ($52,375.62) about $17,000 is assessable. There being no one present.to be heard, the hearing was closed on a motion by Alderman Torgerson, seconded by Alderman Mlinar and carried unanimously. A motion was made by Alderman Torgerson to approve the assessment roll and waive reading and adopt Resolution No. 7832. Motion seconded by Alderman Mlinar and carried unanimously. f?` ASSESSMENT ROLL NO. 199 - PROJECT NO. 84 -07 Vice Mayor Carls opened the hearing. There being no one present to be heard, the hearing was closed on a motion by Alderman Mlinar, seconded by Alderman Torgerson and carried unanimously. Motion was made by Alderman Mikulecky, seconded and carried unanimously to approve the assessment roll and waive reading and adopt Resolution No. 7833. 6. COMMUNICATIONS, REQUESTS AND PETITIONS (a) CONSIDERATION OF REQUEST BY CITY FORESTER TO ATTEND ARBORICULTURAL CONFERENCE SEPTEMBER 19 -21, 1984 Following discussion, motion was made by Alderman Mikulecky, seconded by Alderman Torgerson and carried unanimously to approve request to attend conference. (b) CONSIDERATION OF CUSTOMER COURTESY_ PARKING TICKET (PRESENTATION BY DICK MCCLURE) Mr. McClure spoke on behalf of the Downtown Retail Association and Chamber of Commerce requesting that the City Council amend the parking regulation for off- street parking to allow all -day permits for downtown business customers who require more than 3 hours parking time for special functions. The permits would be administered by the Chamber of Commerce. This would be similar to special parking permits that were used when parking meters were still in effect. It could be done on a 3 to 6 month trial basis. Alderman Mlinar moved to grant the request and have City Attorney prepare a resolution incorporating the details of the request. Motion was seconded by Alderman Torgerson and carried unanimously. (c) CONSIDERATION OF REQUEST FOR FIRE MARSHALL TO ATTEND EMPLOYEE RIGHT TO KNOW WORKSHOP ON AUGUST 21, 1984 After discussion, motion was made by Alderman Mlinar, seconded by Alderman Torgerson to approve the request. Motion carried unanimously. -3- COUNCIL MINUTES AUGUST 14, 1984 7. RESOLUTIONS AND ORDINANCES (a) ORDINANCE NO. 16/84 - AN ORDINANCE TO VACATE A PORTION OF HASSAN STREET BETWEEN FIRST AVENUE S.E. AND WASHINGTON AVENUE EAST Motion was made by Alderman Torgerson, seconded by Alderman Mlinar and carried unanimously to waive second reading and adopt Ordinance No. 16/84. (b) ORDINANCE NO. 17/84 - AN ORDINANCE AMENDING ORDINANCE NO. 464 ZONING REGULATIONS OF THE CITY OF HUTCHINSON, SECTION 8, SUBDIVISION SECTION 8.03, R -2 MULTIPLE FAMILY RESIDENCE DISTRICT Motion was made by Alderman Mlinar, seconded by Alderman Torgerson and carried unanimously to waive second reading and adopt Ordinance No. 17/84. (c) ORDINANCE NO. 18/84 - AN ORDINANCE AMENDING ORDINANCE NO. 464 ZONING REGULATIONS OF THE CITY OF HUTCHINSON, SECTION 9, TABULATION - DIMENSIONAL REQUIREMENTS FOR ZONING DISTRICTS. Motion was made by Alderman Mikulecky, seconded by Alderman Mlinar and carried unanimously to waive second reading and adopt Ordinance No. 17/84. (d) RESOLUTION NO. 7834 - RESOLUTION SETTING ELECTION, TIME, PLACE LOCATIONS OF PRECINCTS, AND APPOINTING OF JUDGES FOR STATE PRIMARY ELECTION AND STATE GENERAL ELECTION. After discussion, motion was made by Alderman Torgerson, seconded by Alderman Mikulecky and carried unanimously to waive reading and adopt Resolution No. 7834. Text will read: "All Polling Places Will Be In the "Flew" Armory." 8. UNFINISHED BUSINESS (a) CONSIDERATION OF INTEREST RATE ON 1984 BOND ISSUE (DEFERRED JULY 24, 1984) There was discussion of whether any delinquencies on assessments should be made up through higher interest rate on improvement bonds or by ad valorem taxes, since either method is legal. Consensus of the Council was that the ad valorem method is preferred. Following this discussion, motion was made by Alderman Mikulecky, seconded by Alderman Mlinar and carried unanimously to set the interest rate on the 1984 improvement bond issue at 8.4 %. (b) CONSIDERATION OF SCHOOL BUS PARKING AT ELEMENTARY SCHOOL (DEFERRED 6- 11 -84) Police Chief O'Borsky stated he would discuss the enforcement of the parking ordinance with school authorities to develop reasonable guidelines in dealing with parking by residents of the affected street. Motion was made by Alderman Torgerson, seconded by Alderman Mikulecky and carried unanimously to waive first reading of school bus parking ordinance and set second reading for August 28, 1984. -4- • • COUNCIL MINUTES AUGUST 14, 1984 (c) CONSIDERATION OF ESTABLISHING DATES FOR COUNCIL BUDGET MEETINGS Meeting dates of August 20, 23, 29 and September 24 were approved on a motion by Alderman Mlinar, seconded by Alderman Torgerson and carried unanimously. 9. NEW BUSINESS (a) CONSIDERATION OF FAULTY STORM SEWER AT GOEBEL FIXTURE COMPANY In response to communication from Goebel Fixture Company, City Engineer Priebe responded that the storm sewer capacity in the area is too small. It could be remedied by building an auxiliary line from Roberts Road /Kay Street to Lake Street. Some properties in the area have been assessed for trunk lines only and lateral line would still be assessable. It had been considered to make this improvement in the future when Roberts Road might need to be resurfaced rather than to do it as a separate project. However, additional development in the area has exaggerated the drainage problem recently. Motion was made by Alderman Mlinar that staff study the area and present alternatives for solving the problem in a report. Motion was seconded by Alderman Torgerson and carried unanimously. City Administrator Plotz was directed to send Goebel's a letter of explanation. (b) CONSIDERATION OF REQUEST BY FIRST NATIONAL BANK, HUTCHINSON, TO CHANGE ALLEY BETWEEN THIRD AND FOURTH AVENUE TO TWO -WAY TRAFFIC. City Administrator Plotz reported that the bank's building project including drive -up banking facility will make a change in the one -way traffic pattern adopted earlier. This could be alleviated by ending the one -way restriction a block farther north than is presently in effect. Motion was made by Alderman Mikulecky to waive first reading of Ordinance No. 20/84 Amending Section 710:00 of the 1974 Ordinance Code df the City of Hutchinson, Entitled One -Way Traffic, and to set second reading for August 28, 1984. Motion was seconded by Alderman Torgerson and carried unanimously. (c) CONSIDERATION OF APPLICATION FOR GAMBLING DEVICES LICENSE SUBMITTED BY ST. ANASTASIA CATHOLIC CHURCH Motion was made by Alderman Mlinar, seconded by Alderman Torgerson, and carried unanimously to approve application and issue license. -5- 0 9 COUNCIL MINUTES AUGUST 14, 1984 (d) CONSIDERATION OF APPLICATION FOR BINGO LICENSE SUBMITTED BY ST. ANASTASIA CATHOLIC CHURCH Motion was made by Alderman Mlinar, seconded by Alderman Torgerson and carried unanimously to approve application and issue license. (e) CONSIDERATION OF SET -UP LICENSE FOR CROW RIVER COUNTRY CLUB Police Chief O'Borsky stated that the State of Minnesota would allow the issuance of a setup license by the City. The Country Club has traditionally provided setups but the question of a license has not been addressed previously. City Attorney Schaefer reported he has had inquiry concerning setups and Sunday liquor from a bottle club. The question appears to be one of allowing serving of liquor on Sunday in public. After discussion, motion was made by Alderman Mlinar to defer the request until the next meeting. On a roll call vote, Aldermen Mlinar, Mikulecky and Torgerson voted "yes ", Vice - Mayor Carls voted "no ". Motion carried. (f) CONSIDERATION OF SUBDIVISION AGREEMENT FOR CLOUSE ADDITION After discussion, motion was made by Alderman Torgerson to approve subdivision agreement. Motion was seconded by Alderman Mikulecky and carried unanimously. (g) CONSIDERATION OF CITY CUTTING WEEDS AT HERITAGE CENTER SITE ON HIGHWAY 7 WEST (REQUESTED BY HERITAGE CENTER PROMOTERS) City Administrator Plotz stated that the McLeod County Historical Society has requested that the City cut the grass on the right of way and 25 feet in from the property line at the Heritage Center site. After discussion, motion was made by Alderman Mlinar to approve the request for grass cutting for the remainder of 1984 and through the 1985 season. Motion was seconded by Vice- Mayor'Carls. Motion was subsequently 4 amended by Alderman Torgerson, seconded by Alderman Mikulecky to provide mowing for the remainder of 1984 only. Amendment carried with Alderman Mlinar voting "no ". The motion to provide mowing for 1984 then carried unanimously. (h) CONSIDERATION OF USE OF LIBRARY SQUARE FOR FOOD CONCESSION ON SEPTEMBER 14 -15, 1984, BY HUTCHINSON AMBASSADORS Motion was made by Alderman Mlinar, seconded by Alderman Mikulecky, and carried unanimously to approve the request. • 9 COUNCIL MINUTES AUGUST 14, 1984 (i) CONSIDERATION OF EMPLOYING PART TIME ACTIVITIES SUPERVISOR AT SENIOR CENTER Request was made by Carol Haukos and Barb Haugen that September Davidson be employed for 20 hours a week to the end of 1984 as activities supervisor. Request for 1985 employment may be considered later with 1985 budget request. Motion to approve 1984 employment was made by Alderman Mlinar, seconded by Alderman Torgerson and carried unanimously. CONSIDERATION OF SETTING PUBLIC HEARING FOR ASSESSMENT ROLLS NO. 187 AND No. 188 FOR MAC'S BLUFF ADDITION After discussion, motion was made by Alderman Torgerson to approve and set public hearings for August 28, 1984, at 8:00 p.m. Motion was seconded by Alderman Mlinar and carried unanimously. Motion was made to waive reading and adopt Resolutions No. 7835 and No. 7838 by Alderman Mlinar. Motion was seconded by Alderman Torgerson and carried unanimously. (k) CONSIDERATION OF ADDITIONAL MINOR LANDSCAPING IMPROVEMENTS TO OLD WIGEN AND PLOWMAN PARKING LOTS (PRESENTATION BY DICK MCCLURE OF COMMUNITY DEVELOPMENT BEAUTIFICATION COMMITTEE) The recommendation of the Beautification Committee is that trees, lights, and changes in curbing and sidewalk be provided when the parking lots are paved. City Engineer Priebe commented that bids were taken for the paving on August 13, 1984, and that it might be necessary to delay awarding bids until it is known whether the changes will add to free cost. The request for landscaping improvements was approved on a motion by Alderman Mlinar, seconded by Alderman Mikulecky and carried unanimously. 10. MISCELLANEOUS (a) COMMUNICATIONS FROM CITY ADMINISTRATOR City Administrator Plotz reported that the schedule for budget meetings is being set up. He reminded the Council of the City Picnic scheduled for August 22. He reported progress on the Frank Fay project and on the revenue sharing audit. (b) COMMUNICATIONS FROM DIRECTOR OF ENGINEERING Engineering Director Priebe reported that all businesses have responded to the questionnaire which the City sent them concerning sidewalk needs with the exception of James Swanke of Swanke Motors. He recommended that the City Attorney contact Swanke. Motion was made by Alderman Mlinar, seconded by Alderman Mikulecky and carried unanimously to direct the City Attorney to contact James Swanke concerning the sidewalk question. -7- COUNCIL MINUTES AUGUST 14, 1984 (b) (continued) Engineering Director Priebe reported he has had contact with the City of Owatonna regarding the experimental CCBA sewer project being proposed for Owatonna and Hutchinson. The PCA will not fund such a project but recommends the two communities should join forces to study the project and that a MN registered engineer should submit a report. Presently Owatonna is interviewing engineers, and Engineer Priebe requests to sit in on the interview process. Motion was made by Alderman Torgerson, seconded by Alderman Mlinar and carried unanimously to authorize Engineer Priebe to sit in on Owatonna's interviews. Engineer Priebe further reported that the question of the easement on the Benjamin property is in Attorney Schaefer's hands for continued negotiation. (c) COMMUNICATIONS FROM CITY ATTORNEY SCHAEFER Attorney Schaefer reported that he is obtaining estimates for the codification of ordinances. (d) COMMUNICATIONS FROM ALDERMAN PAT MIKULECKY Alderman Mikulecky requested that public facilities building materials be in a future packet. (e) COMMUNICATIONS FROM ALDERMAN JOHN MLINAR Alderman Mlinar requested an update on the Bretzke garage and was advised by City Administrator Plotz thatthe owners of.the property have'received.no bids for demolition to date but will work on it in coming weeks. (f) COMMUNICATIONS FROM VICE -MAYOR MIKE CARLS Vice -Mayor Carls requested that the City Administrator write a letter to Congressman Vin Weber to be signed by the Council, informing him regarding the CCBA treatment status and requesting that he use his clout to find experimental funds for this project. The request was made a motion by Alderman Torgerson, seconded by Alderman Mlinar and carried unanimously. 11. CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS After discussion, motion was made by Aldmerman Mlinar, seconded by Alderman Torgerson and carried unanimously to approve claims and authorize payment from appropriate funds. 12. ADJOURNMENT There being no further business, the meeting adjourned at 10:05 p.m. &J 0 MINUTES BID OPENING TUESDAY, AUGUST 21, 1984 The bid opening was called to order by City Administrator Plotz at 2:00 P.M. The following were present: City Administrator Gary D. Plotz, Acting Secretary Hazel Sitz, Maintenance Director Palph Neumann, Motor Pool Supervisor Doug Meier and Park /Recreation Director Bruce Ericson. The reading of Publication No. 3296, Invitation for Bids, Two :' ckup Trucks, One for City Park Department, One for City Street LCpartment, was given by Administrator Plotz. The following bids were received and opened: Plowman's Inc. Myron Wigen Chevrolet Co 1/2 ton pickup $ 8,744.00 3/4 ton pickup 13,680.00 1/2 ton pickup $ 8,383.60 3/4 ton pickup 13,628.02 The bids were referred to the Director of Maintenance for review. There being no further business, the bid opening adjourned at 2:05 p.m. 3 • Minutes Hutchinson Planning Co-mmission Tuesday, July 17, 1984 1. CALL TO ORDER The meeting was called to order by Chairman Larry Romo at 7:30 P.M., with the following members present: Marlin Torgerson, Elsa Young, Don Erickson, Shu -Mei Hwang, and Chairman Romo. Members absent: Thomas Lyke and Roland Ebent. Also present: Director of Engineering Marlow Priebe, Building Official Romer Pittman and Fire Marshal George Field. 2. MINUTES The minutes of the regular meeting dated Tuesday, June 19, 1984, were approved as presented on a motion by Mr. Torgerson. Seconded by Mr. Erickson, the motion carried unanimously. 3. PUBLIC HEARINGS (Chairman Homo noted that he had been requested to begin with agenda item 3e. There being no objection, Chairman Romo proceeded with 3e.) (e) CONSIDERATION OF AMENDMENT TO ZONING ORDINANCE 0464 - SECTION 9 Chairman Romo opened the public hearing at 7:31 P.M. with the reading of publication 03279 as published in the Hutchinson Leader on Thursday, July 5, 1984. The request is for an amendment to Zoning Ordinance 0464 - Section 9, regarding minimum lot area per dwelling unit, front and sideyard setbacks as follows: Zone R -3, 2b. Minimum lot area per dwelling unit shall be 2,200 square feet; Zone R -3, 3a. Front yard setback of building line to street shall be 25' up to 2 stories, 30' up to 2 112 stories, 35' up to 3 stories and 40' over 3 stories; Zone R -3, 3b. Side yard setback of building line to lot line shall be: each side 10' up to 2 stories, 12' up to 2 112 stories, 14' up to 3 stories and 16' over 3 stories. Director Priebe explained that the reason for the request was basically to provide more room between buildings for emergency vehicles and for aesthetic quality. Fire Marshal George Field noted that he supported the idea from the standpoint of access for emergency vehicles. Minutes Hutchinson Planning Commission Tuesday, July 17, 1984 1. CALL TO ORDER The meeting was called to order by Chairman Larry Romo at 7:30 P.M., with the following members present: Marlin Torgerson, Elsa Young, Don Erickson, Shu -Mei Hwang, and Chairman Romo. Members absent: Thomas Lyke and Roland Ebent. Also present: Director of Engineering Marlow Priebe, Building Official Homer Pittman and Fire Marshal George Field. 2. MINUTES The minutes of the regular meeting dated Tuesday, June 19, 1984, were approved as presented on a motion by Mr. Torgerson. Seconded by Mr. Erickson, the motion carried unanimously. 3. PUBLIC HEARINGS (Chairman Romo noted that he had been requested to begin with agenda item 3e. There being no objection, Chairman Romo proceeded with 3e.) (e) CONSIDERATION OF AMENDMENT TO ZONING ORDINANCE 0464 - SECTION 9 Chairman Romo opened the public hearing at 7:31 P.M. with the reading of publication 03279 as published in the Hutchinson Leader on Thursday, July 5, 1984. The request is for an amendment to Zoning Ordinance 0464 - Section 9, regarding minimum lot area per dwelling unit, front and sideyard setbacks as follows: Zone R -3, 2b. Minimum lot area per dwelling unit shall be 2,200 square feet; Zone R -3, 3a. Front yard setback of building line to street shall be 251 up to 2 stories, 30' up to 2 112 stories, 35' up to 3 stories and 40, over 3 stories; Zone R -3, 3b. Side yard setback of building line to lot line shall be: each side 10' up to 2 stories, 12' up to 2 112 stories, 14, up to 3 stories and 16, over 3 stories. Director Priebe explained that the reason for the request was basically to provide more room between buildings for emergency vehicles and for aesthetic quality. Fire Marshal George Field noted that he supported the idea from the standpoint of access for emergency vehicles. 1 i f Planning Commission Minutes 7/17/84 Mr. Richard Schmidtbauer was present to ask how much the proposal would change square feet per apartment. Director Priebe responded 400 square feet per dwelling unit. After discussion, Mr. Torgerson made a motion to close the hearing at 7:45 P.M. Seconded by Mrs. Young, the motion carried unanimously. Mr. Torgerson made a motion to recommend to City Council approval of the amendment as requested. Seconded by Mr. Erickson, the motion carried unanimously. (a) CONTINUATION OF SIGN VARIANCE REQUEST SUBMITTED BY SQL REHAB After discussion, Mr. Torgerson made a motion to table this item until after the sign ordinance had been reviewed. Seconded by Mrs. Young, the motion carried unanimously. (b) CONSIDERATION OF REQUEST FOR VACATION OF A PORTION OF HASSAN STREET AS SUBMITTED BY THE CITY Chairman Romo opened the public hearing at 7:45 P.M. with the reading of Publication #3277 as published in the Hutchinson Leader on Thursday, July 5 and Tuesday, July 10, 1984. The request is for the vacation of a portion of the west side of Hassan Street to allow the proposed expansion of the Library. The existing west entrance of the building will remain, but the main entrance and drop -off area will be along Hassan Street. It is in this area that the sidewalk will be extended into what is now diagonal parking area. After discussion, Mr. Erickson made a motion to close the hearing at 7 :47 P.M. Seconded by Mr. Torgerson, the motion carried unanimously. Mr. Erickson made a motion to recommend to City Council approval of the vacation of a portion of Hassan Street as requested. Seconded by Mr. Torgerson, the motion carried unanimously. (c) CONSIDERATION OF A REQUEST FOR A CONDITIONAL USE PERMIT AS SUBMITTED BY MARVIN WILLHITE Chairman Romo opened the public hearing at 7:47 P.M. with the reading of Publication #3281 as published in the Hutchinson Leader on Thursday, July 5, 1984. PA 0 r Planning Co:nmission Minutes 7/17/84 The request is for a conditional use permit to allow the moving in of a house onto an empty lot located on High Street. Mr. Willhite was present to explain that the house is located on a farm where he now lives. After moving the house, he intends to do some remodeling as well as add a garage. He intends to rent out the lower level and live in the upper level of the house. It was indicated that placement of the house would meet all setback requirements and off street parking will be provided. Following discussion, Mr. Torgerson made a motion to close the hearing at 7:55 P.M. Seconded by Mr. Erickson, the motion carried unanimously. Mr. Torgerson made a motion to recommend to City Council approval of the Conditional Use Permit as requested. Seconded by Mrs. Young, the motion carried unanimously. (d) CONSIDERATION OF AMENDMENT TO ZONING ORDINANCE #464 SECTION 8.03 ChairmLin Romo opened the public hearing at 7:57 P.M. with the reading of publication #3278 as published in the Hutchinson Leader on Thursday, July 5, 1984. The request is for an addition to Zoning Ordinance #464 Section 8.03, R -2 Multiple Family District, under Conditional permitted uses that reads "Licensed Boarding Houses ". Building Official Pittman explained that "licensed" referred to State licensure and that the addition would be for boarding houses for the elderly -- an alternative to nursing homes for those who cannot live alone. During the course of the discussion, it was suggested that "for the elderly" be added to clarify the intent of the addition. After discussion, Mr. Erickson made a motion to close the hearing at 8 :05 P.M. Seconded by Mr. Torgerson, the motion carried unani- mously. Mrs. Young made a motion to recommend to City Council approval of adding "Licensed Boarding Houses for the elderly" to Zoning Ordinance #464, Section 8.03 as requested. Seconded by Mr. Hwang, the motion carried unanimously. (f) CONSIDERATION OF PRELIMINARY AND FINAL PLAT AS SUBMITTED BY ROBERT LUHMAN (WALLER'S SECOND ADDITION) Chairman Romo opened the public hearing at 8:05 with the reading of publication #3280 as published in the Hutchinson Leader on Thursday, July 5, 1984. The request is for the preliminary and final platting of 5 lots to be known as WALLER'S SECOND ADDITION. Director Priebe explained that there would have to be an extension of utilities and there would be street construction to be looked at in the future. He noted a proposed upgrading of Waller Drive in 1988. 3 ! 0 Planning Commission Minutes 7/17/84 Larry Anderson of 667 Bluff Street was present to ask what type of buildings would be put in the area. Director Priebe stated that he thought they were planning for 4 -unit apartment buildings. Mr. Art Krzmarzick of 677 Bluff Street stated that development of this plat would limit access to his back yard. It was determined that Mr. Krzmarzick would have to talk to the property owner about the possibility of continuing to use that area as access. Another neighbor had a question about assessments for the future street construction. After discussion, Mr. Torgerson made a motion to close the hearing at 8:23 P.M. Seconded by Mr. Erickson, the motion carried unanimously. Mr. Erickson made a motion to recommend to City Council approval of the preliminary and final plat as submitted. Seconded by Mr. Torgerson, the motion carried unanimously. 4. OLD BUSINESS (a) DISCUSSION OF SIGN ORDINANCE Chairman Romo noted that after reviewing the sign ordinance, he felt that everything had been addressed except possibly the multistory business complex, such as the S & L Building. He felt that if there were a change, that's what should be addressed without changing the existing ordinance. Director Priebe added that he felt the S & L Building could meet the sign ordinance and still have an effective sign. He further indicated that the problem may be between owner and tenants. Before they rent out a facility, it should be made clear what type of signs are allowed. Mr. Frank Fay (Main Street business) sited the example of the Madsen Building. Their sign lists the tennant clearly, and in an attractive manner which conforms to the sign ordinance. After discussion it was the consensus of the Planning Commission that the sign ordinance remain as is. Chairman Romo noted that at the next regular meeting of the Planning Commission, the hearing on the S & L sign variance be completed. At that time, the Commission should also address the nonconforming sign that is already in existence. (b) CONSIDERATION OF FINAL PLAT SUBMITTED BY PAUL CLOUSE ( CLOUSE ADDITION) Director Priebe noted that the final plat for CLOUSE ADDITION had been submitted. It was the same as the preliminary plat that had already been submitted and approved. 4 0 0 Planning Commission Minutes 7/17/84 Mr. Torgerson made a motion to recommend to City Council approval of the final plat as submitted. Seconded by Mrs. Young, the motion carried unanimously. 5. NEW BUSINESS (a) CONSIDERATION OF SKETCH PLAN SUBMITTED TO COUNTY BY DENNIS KARL (PETERSON ESTATES) Director Priebe explained that a sketch plan had been submitted to the County and referred to the City as it is within the two mile radius of the City. The request is for a 5 lot plat in a cul de sac type of layout, located south on County Highway 25 (Jefferson Street). Director Priebe had sent a memo to the Planning Commission recommending that the sketch plan be rejected based on a former recommendation made in October of 1982. At that time a two lot plat of Peterson's Estates had been approved with several restrictions as outlined in the memo. Director Priebe's main concern was the opportunity to get a street extension to County Road 25 south of Century Avenue -- in terms of long range planning for the City. Mr. Frank Fay was present to state that he had sold the property to Mr. Dave Johnson, Mr. Farling Hanson and Mr. Dennis Kahl, each of whom was also present. When they bought the property, they were not aware of the 1982 restrictions recommended by the City. They bought the property with the intention of each of them building a home on a lot and then selling the remaining two lots. The cul de sac arrangement was what they wanted in terms of privacy and the layout of the land. Director Priebe presented an alternate layout of four lots that would include the street to County Road 25. Upon reviewing it, both Mr. Johnson and Mr. Ranson stated that if they had to go with that layout as opposed to the cul de sac layout, they would. probably build elsewhere. Discussion followed. Mr. Torgerson pointed out that a cul de sac is not quite as private as it would seem and it also poses a problem for emergency vehicles and snow removal. Mr. Fay noted that from a marketing point of view, a cul de sac is very appealing. He also noted that the Township would like to see the plat developed from the standpoint of tax revenues. It was brought out that by refusing development of the plat because of a road that might never go through anyhow, you were limiting the owners' rights. 0 • Planning Co:rmission Minutes 7/17/84 After further discussion, Chairman Romo called for comments from each of the Commission members. Mr. Torgerson stated that although he understood the need for long range planning, his overall feeling would be to go ahead with the approval of the sketch plan. Mrs. Young stated she understood how they (the property owners) felt. Even though long range planning is important, in this case she would recommend approval to City Council. Mr. Erickson stated that he had the same feelings about long range planning, but he is more concerned with protecting the planned "ring road ". He feels there could be other opportunities for getting a road to County Road 25, and would recommend approval of this sketch plan. Mr. Hwang stated he agreed with the other members and would recommend approval. Chairman Romo noted that he thought it was unfortunate that the property was purchased without knowledge of the 1982 City restrictions. He could not see letting the property sit undeveloped and would recommend approval. Mr. Hwang made a motion to recommend to City Council approval of the sketch plan as presented. Seconded by Mrs. Young, the motion carried unanimously. (b) CONSIDERATION OF PROPOSED ANNEXATION SUBMITTED BY BETHKE /MCDONALD Director of Engineering Priebe explained the proposed annexation. After discussion, Mr. Torgerson made a motion to recommend to City Council proceeding with the annexation as petitioned. Seconded by Mr. Erickson, the motion carried unanimously. A. ADJOURNMENT There being no further business, Mr.'Torgerson made a motion to adjourn the meeting. Seconded by Mr. Hwang, the motion carried unanimously and the meeting was adjourned at 9:20 P.M. 0 n ORDINANCE NO. 20/84 L AN ORDINANCE AMENDING SECTION 710:00 OF THE 1974 ORDINANCE CODE OF THE CITY OF HUTCHINSON, ENTITLED ONE -WAY TRAFFIC THE CITY COUNCIL OF HUTCHINSON, MINNESOTA DOES ORDAIN: SECTION 1. Section 710:00 of the 1974 Ordinance Code of the City of Hutchinson, entitled One -Way Traffic is hereby amended as follows: Subd. 3. All alleyways located between Main Street on the east, Franklin Street on the west, Second Avenue Northwest on the north, vacated Third Avenue Southwest on the south are hereby designated one -way northbound. SECTION 2. This ordinance shall take effect and be enforced from and after its passage and publication. Adopted by the City Council this day of 1984. Robert H. Stearns Mayor ATTEST: Gary D. Plotz City Clerk _jr (612) 587 -5151 CITY OF HUTCHIN sON 37 WASHINGTON AVENUE WEST HUTCHINSON. MINN. 55350 August 23, 1984 M E M O R A N D U M TO: MAYOR AND CITY COUNCIL FROM: GARY PLOTZ, CITY ADMINISTRATOR RE: IRB FOR POLICE STATION Upon reviewing the IRB proposal further, in relation to General Revenue Sharing, Dorsey & Whitney is now of the opinion that investing the General Revenue Sharing money at an interest greater than the IRB borrowing would constitute arbitrage. The alternatives suggested in the correspondence would be very complicated and without the principal ($530,000) at the end of the investment. Therefore, I see no particular advantage with continuing or proceeding with the public hearing on this concept. t)- cz August 8, 1984 Mr. Gary D. Plotz City Administrator 37 Washington Avenue West Hutchinson, Minnesota 55350 Mr. Kenneth Merrill Hutchinson City Hall 37 Washington Avenue West Hutchinson, Minnesota 55350 Mr. James Schaefer 105 Second Avenue Southwest P.O. Box 363 Hutchinson, Minnesota 55350 201 DWDSON BUILDING 8 THIRD STREET NORTH GREAT FALLS, MONTANA 59401 (406J 727 -3632 SUITE 675 NORTH 1800 M STREET N. W. WASHINGTON, D. C. 20036 (202)955-1065 30 RUE LA BOETIE 75008 PARIS, FRANCE 011 331 562 32 50 `,I f IAt is 6y I� � fr e�e,1ge� Mr. William Fahey Ehlers & Associates 120 First National Bank -Soo Line Concourse Minneapolis, Minnesota 55402 Gentlemen: Re: Proposed Downtown Redevelopment Project At our meeting on July 26th I expressed a concern that if the City of Hutchinson issues industrial development revenue bonds to finance a public safety building to be constructed and owned by Frank Fay and leased to the City and at or prior to the issuance of the bonds the City invests federal revenue sharing funds at a yield in excess of the yield on the bonds and uses the investment income on such investments to make the lease payments to Mr. Fay, the bonds may constitute arbitrage bonds under Section 103(c) of the Internal Revenue Code and the interest on the bonds will not be exempt from Federal income taxation. Upon reviewing the proposal further, it appears to us that without a favorable ruling from the Internal Revenue Service HORSEY 8 WHITNEY A Pdanemhip lnclud ng P ofe ,,onal C,,pw V,r,s 2200 FIRST BANK PLACE EAST MINNEAPOLIS, MINNESOTA 55402 510 NORTH CENTRAL FE TOWER LI (612) 340 -2600 40.5 MINNESOTA STREET ST. PAUL,MWNESOTA 55101 TELD(: 29 -0605 (612)22] -BOO TELECORER: (612)340 -2868 P. O. BOX BAB 340 FIRST NATIONAL BANK BUILDING ROCHESTER, MINNESOTA 55903 (507) 288-3156 312 FIRST NATIONAL BANK BUILDING JEROME P. GILLIGAN WAT ATA, MINNESOTA 55391 (612)475 -0373 1612) 340 -2962 August 8, 1984 Mr. Gary D. Plotz City Administrator 37 Washington Avenue West Hutchinson, Minnesota 55350 Mr. Kenneth Merrill Hutchinson City Hall 37 Washington Avenue West Hutchinson, Minnesota 55350 Mr. James Schaefer 105 Second Avenue Southwest P.O. Box 363 Hutchinson, Minnesota 55350 201 DWDSON BUILDING 8 THIRD STREET NORTH GREAT FALLS, MONTANA 59401 (406J 727 -3632 SUITE 675 NORTH 1800 M STREET N. W. WASHINGTON, D. C. 20036 (202)955-1065 30 RUE LA BOETIE 75008 PARIS, FRANCE 011 331 562 32 50 `,I f IAt is 6y I� � fr e�e,1ge� Mr. William Fahey Ehlers & Associates 120 First National Bank -Soo Line Concourse Minneapolis, Minnesota 55402 Gentlemen: Re: Proposed Downtown Redevelopment Project At our meeting on July 26th I expressed a concern that if the City of Hutchinson issues industrial development revenue bonds to finance a public safety building to be constructed and owned by Frank Fay and leased to the City and at or prior to the issuance of the bonds the City invests federal revenue sharing funds at a yield in excess of the yield on the bonds and uses the investment income on such investments to make the lease payments to Mr. Fay, the bonds may constitute arbitrage bonds under Section 103(c) of the Internal Revenue Code and the interest on the bonds will not be exempt from Federal income taxation. Upon reviewing the proposal further, it appears to us that without a favorable ruling from the Internal Revenue Service DORSEY & WHITNEY Page -2- Mr. Gary D. Plotz Mr. Kenneth Merrill Mr. James Schaefer Mr. William Fahey August 8, 1984 on the question, we would be unable to render an opinion that the industrial development revenue bonds proposed to be issued will not be arbitrage bonds. Section 103(c) of the Internal Revenue Code provides generally that bonds issued by a state or municipality will be "arbitrage bonds ", the interest on which will not be exempt from federal income tax, if the proceeds are reasonably expected to be invested in obligations with a yield that is higher than the yield on the bonds. Under the regulations there are various so called "temporary periods" during which proceeds of bonds can be invested in obligations at an unrestricted yield, the most common of which is 3 years in the case of construction project if certain conditions are met. The regulations also restrict the yield on sinking funds which are defined as any fund reasonably expected to pay the bonds, even if the fund is not derived from or attributable to bond proceeds in any way. In the case of the present proposal we are concerned that since the investment income on the revenue sharing funds would be expected to be used by the City to make the lease payments which are the only source of revenue to pay the principal of and interest on the bonds, such funds would constitute a, sinking fund on which the yield would have to be restricted. One possible solution the City may wish to explore is to use the revenue sharing funds to make improvements in a revenue producing utility of the City, such as the water or sewer utility, and Chen annually appropriate revenues derived from the utility to make the lease payments. These appropriated revenues would otherwise have been used to pay debt service on obligations issued to finance the improvements. Assuming that there are improvements that need to be done and the proposal is feasible we would need to examine any existing bond resolutions for bonds for which such revenues are pledged to ensure such an appropriation is permitted. Since the revenue sharing funds would not be invested in obligations this would not constitute arbitrage. This may not be as attractive to the City since it would not have the guaranteed source of income that it would have if it invested in government obligations and in addition the City is most likely receiving a smaller return on its investment. However, it has an advantage in that the revenue sharing funds have now been expended and alleviates the concern about whether the investment of the revenue sharing funds in interest bearing securities is permitted. 0 0 DoRSEY & WHITNEY Page -3- Mr. Gary D. Plotz Mr. Kenneth Merrill Mr. James Schaefer Mr. William Fahey August 8, 1984 0 One other thing the City should consider as it examines this proposal is the possibility of investing a portion of the revenue sharing funds to pay the purchase price of the public safety building at the expiration of the lease term. Assuming it is a permitted use of revenue sharing funds, the City could invest in zero coupon government obligations to fund the purchase price. The investment of funds to pay the purchase price will not constitute arbitrage since such funds would not be expected to be used to pay principal or interest on the bonds. Another possibility raised at the meeting was the use of a tax exempt lease. This would still have the same arbitrage limitations and may limit the use of tax increments for the project since it would appear to be more in the nature of a municipally owned building. In examining the possibilities of using a tax exempt lease, it appears that the market for such an obligation is limited because of the length of the lease and the fact it involves real estate. Consequently, the only potential purchasers appear to be local banks. If we proceed with a tax exempt lease (or any lease for that matter which involves a nominal purchase price) in order to avoid an argument that it is an installment purchase contract and consequently run afoul of some troubling statutory language in Minnesota Statutes, Section 463.71, the lease should contain a provision which allows the City to terminate the lease at the end of any fiscal year if it so determines. If any of you have any questions concerning the matters discussed in this letter, please give me a call: Yours truly, F Jere P. Gi igan JPG:cmn Parkdale Four, Suite 300 5353 Gamble Drive Minneapolis, Minnesota 55416 Telephone (612) 546 -0404 6 0 Charles Bailly & Company Certified Public Accountants Mr. Gary Plotz City of Hutchinson Hutchinson, MN 55350 Dear Gary: August 23, 1984 u" Offiocs in Minnesota, Montana, North Dakota and South Dakota Associates in principal cities of United States, Canada, Mesim, Europe and Asia Per your request, we have examined the various financial statements forwarded to us regarding the Fay and Trucker joint venture. This information consisted of: 1. Personal Financial Statements (Compiled) a. Frank J. Fay - August 31, 1981 May 31, 1982 January 31, 1983 January 31, 1984 b. James L. Trucker - April 30, 1982 April 30, 1983 April 30, 1984 2. Audited Balance Sheet - Trucker - Sheehy Construction, Inc. - January 31, 1984 3. F & T Joint Venture - Financial Projections Based upon the information and projections forwarded to us, the project appears to be financially viable if the projections of income and expenses are accurate. In addition, the personal net worth of the partners appears to be adequate for this investment. We have not audited, reviewed or compiled any. of the financial information submitted to us and we have not examined any underlying documentation used to prepare the financial information. We do not express an opinion as to the correctness of any of the financial information listed in items 1, 2 and 3 above. If you have any further questions, please feel free to contact us. I Very truly yours, CHARLES BAILLY & COMPANY I By C.P.A. i 0 August 24, 1984 Mr. John Bernhagen, Executive Director Community Development Corporation City of Hutchinson 37 Washington Avenue West Hutchinson, Minnesota 55350 Dear John: I* This letter is written to amend the scope of the Parkview Plaza project as well as its financing plan. The amended proposal is consistent with that presented in our May 30, 1984, letter with two exceptions: the portion of the hotel building currently leased by the jeweler, including the upstairs apartment is ex- cluded from the proposal, and the purchase price of the fire station is increased from $100,000 to $130,000. Due to the aforementioned amendments, the property acquisition cost has been reduced to $365,000. Applying the 45% formula used for the resale price write -down associated with the tax increment project, produces a resale price of $165,000. The City would be required to sell approximately $266,000 in bonds to produce the $200,000 in proceeds to provide for this write- down. The following tax increment calculations indicate that there is insufficient increment generated to support a bond sale of this amount. Commercial Retail $ 60,000 X, .28 = $ 16,800 288,000 X .43 = 123,840 $140,640 X .118639 = $ 16,685 Residential 14 units X $ 30,000 = $ 420,000 X .17 = $ 71,400 212,875 X .19 = 40,446 $111,846 X $ 16,685 13,270 Tax $ 29,955 Less estimated existing base 5,995 Increment $ 24,000 118639 = $ 13,270 i Mr. John Bernhagen, Executive Director Community Development Corporation City of Hutchinson August 24, 1984 Page Two A bond sale of approximately $200,000 resulting in $150,000 in proceeds is feasible. Therefore, the developer would be required to pay an additional $50,000 for the property or $215,000. We request that the numbers associated with the tax increment bond sale be reduced in accordance with the above. We also request that the Industrial Revenue Bonds to be sold to finance the acquisi- tion and rehabilitation of the commerial aspects of the project remain $400,000. We request your earliest review and approval. We will be in attendance at the Tuesday, August 28 City Council meeting regarding this proposal. Sincerely, TRUCKER DEVELOPMENT, INC. Frank cc: Gary Plotz MWS /kl I s 6 August 24, 1984 Mr. John Bernhagen, Executive Director Community Development Corporation City of Hutchinson 37 Washington Avenue West Hutchinson, Minnesota 55350 Dear John: This letter is written to amend the scope of the Parkview Plaza project as well as its financing plan. The amended proposal is consistent with that presented in our May 30, 1984, letter with two exceptions: the portion of the hotel building currently leased by the jeweler, including the upstairs apartment is ex- cluded from the proposal, and the purchase price of the fire station is increased from $100,000 to $130,000. Due to the aforementioned amendments, the property acquisition cost has been reduced to $365,000. Applying the 45% formula used for the resale price write -down associated with the tax increment project, produces a resale price of $165,000. The City would be required to sell approximately $266,000 in bonds to produce the $200,000 in proceeds to provide for this write- down. The following tax increment calculations indicate that there is insufficient increment generated to support a bond sale of this amount. Commercial Retail to 9, $ 60,000 X .28 = $ 16,800 288,000 X .43 = 123,840 $140,640 X .118639 = $ 16,6 5 �.©0 _ �w Residential 14 units X $ 30,000 = $ 42 X .17 $ 71,400 212, 875 A IIP 1 �Q ► $ 16,685 1 13,270 Tax $ 29,955 Less estimated existing base 5,995 Increment $ 24,000 /1 40,446 $111,846 X - .118639 = $ 13,270 Mr. John Bernhagen, Executive Director Community Development Corporation City of Hutchinson August 24, 1984 Page Two A bond sale of approximately $200,000 resulting in $150,000 in proceeds is feasible. Therefore, the developer would be required to pay an additional $50,000 for the property or $215,000. We request that the numbers associated with the tax increment bond sale be reduced in accordance with the above. We also request that the Industrial Revenue Bonds to be sold to finance the acquisi- tion and rehabilitation of the commerial aspects of the project remain $400,000. We request your earliest review and approval. We will be in attendance at the Tuesday, August 28 City Council meeting regarding this proposal. Sincerely, TRUCKER DEVELOPMENT, INC. _ 1.ff�� C l Frank cc: Gary Plotz MWS /kl 4 0 August 13, 1984 Mr. Gary D. Plotz City Administrator Hutchinson City Hall 37 Washington Avenue West Hutchinson, Minnesota 55350 Re: Frank Fay Project and F & T Joint Ventures Project Dear Gary: 201 DA AOSON BUILDING 8 THIRD STREET NORTH GREAT FALLS. MONTANA 59401 (406)727 -3632 SUITE 675 NORTH 1600 M STREET N. W. WASMINGTON,D. C. 20036 (202) 955 -1065 30 RUE LA. BOERE 75006 PARIS, FRANCE Oil 331 562 32 50 Enclosed are drafts of the various required preliminary documents relating to the projects referred to above. This material should be placed on file in your office and be available for public inspection prior to the scheduled hearing on August 28th. This material contains numerous blanks which the applicants will need to complete prior to the hearing. Also, each should obtain the enclosed form of letter as to the economic feasibility of the respective projects from a bank, investment banking firm or other financial institution as soon as possible. Once you have had an opportunity to review material, please call me with your questions and comments. Yours truly, grzmp. Gi'lli&cgran? JPG:cmn Enclosyres cc: times Schaefer William Fahey this 0 HORSEY & WHITNEY A Partnership Including Professional Corponihons 2200 FIRST BANK PLACE EAST MINNEAPOLIS, MINNESOTA 55402 510 NORTH CENTRAL LIFE TOWER (612) 340-2600 445 MINNESOTA STREET ST. PAUL,MINNESOTA 55101 TELEX: 29- 0605 (62)227-8017 TELECORER: (62)340 -2868 P. O. BOX 848 340 FIRST NATIONAL BANK BUILDING ROCNESTER,MINNESOTA 55903 (507) 288 -3156 312 RRST NATIONAL 6ANK BUILDING JEROME P. GILL IGAN WAYZATA,MINNESOTA 55391 (612)475-0373 (612) 340 -2962 August 13, 1984 Mr. Gary D. Plotz City Administrator Hutchinson City Hall 37 Washington Avenue West Hutchinson, Minnesota 55350 Re: Frank Fay Project and F & T Joint Ventures Project Dear Gary: 201 DA AOSON BUILDING 8 THIRD STREET NORTH GREAT FALLS. MONTANA 59401 (406)727 -3632 SUITE 675 NORTH 1600 M STREET N. W. WASMINGTON,D. C. 20036 (202) 955 -1065 30 RUE LA. BOERE 75006 PARIS, FRANCE Oil 331 562 32 50 Enclosed are drafts of the various required preliminary documents relating to the projects referred to above. This material should be placed on file in your office and be available for public inspection prior to the scheduled hearing on August 28th. This material contains numerous blanks which the applicants will need to complete prior to the hearing. Also, each should obtain the enclosed form of letter as to the economic feasibility of the respective projects from a bank, investment banking firm or other financial institution as soon as possible. Once you have had an opportunity to review material, please call me with your questions and comments. Yours truly, grzmp. Gi'lli&cgran? JPG:cmn Enclosyres cc: times Schaefer William Fahey this CERTIFICATION OF MINUTES RELATING TO INDUSTRIAL DEVELOPMENT REVENUE BONDS Issuer: City of Hutchinson, Minnesota Governing Body: City Council Kind, date, time and place of meeting: A regular meeting, held on August 28, 1984, at o'clock P.M., at the City Hall. Members present: Members absent: Documents Attached: Minutes of said meeting (pages): MINUTES OF PUBLIC HEARING ON PROPOSED PROJECT RESOLUTION NO. RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJECT AND ITS FINANCING UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT; REFERRING THE PROPOSAL TO THE MINNESOTA ENERGY AND ECONOMIC DEVELOPMENT AUTHORITY FOR APPROVAL; AND AUTHORIZING PREPARATION OF NECESSARY DOCUMENTS (F & T JOINT VENTURES PROJECT) I, the undersigned, being the duly qualified and acting recording officer of the public corporation issuing the obligations referred to in the title of this certificate, certify that the documents attached hereto, as described above, 'have been carefully compared with the original.records of the corporation in my legal custody, from which they have been transcribed; that the documents are a correct and complete transcript of the minutes of a meeting of the governing body of the corporation, and correct and complete copies of all resolutions and other actions taken and of all documents approved by the governing body at the meeting, insofar as they relate to the obligations; and that the-meeting was duly held by the governing body at the time and place and was attended throughout by the members indicated above, pursuant to call and notice of such meeting given as required by law. WITNESS my hand officially as such recording officer and the seal of the City this _ day of August, 1984. Signature Gary D. Plotz, City Administrator (SEAL) ' Name and Title y The Mayor stated that this was the time and place fixed by Resolution No. 7815 of this Council, adopted on July 24, 1984, for a public hearing on the proposal that the City undertake and finance a Project on behalf of F & T Joint Ventures, a Minnesota general partnership (the Borrower), pursuant to Minnesota Statutes, Chapter 474. The City Administrator presented an affidavit showing publication of the notice of public hearing at least once not less than 15 nor more than 30 days prior to the date fixed for the public hearing, in the The Hutchinson Leader, the official newspaper of the City and a newspaper of general circulation throughout the City. The affidavit was examined, found to be satisfactory and ordered placed on file with the City Administrator. The Mayor then opened the meeting for the public hearing on the proposal to undertake and finance the Project on behalf of the Borrower. The purpose of the hearing was explained, the nature of the Project and of the proposed revenue bonds was discussed, the draft copy of the Application to the Minnesota Energy and Economic Development Authority with draft copies of all attachments and exhibits were available, and all persons present who desired to do so were afforded an opportunity to express their views with respect to the proposal to undertake and finance the Project, in response to which the following persons either appeared, were recognized and made statements, or filed written comments with the City 0 6 nistrator before the date set for the hearing, summaries of which appear opposite their respective names: Name of Speaker Summary of Views After all persons who wished to do so had stated or filed their views on the proposal, the Mayor declared the public hearing to be closed. After some discussion, Member for adoption of the following resolution: -2- moved RESOLUTION NO. RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJECT AND ITS FINANCING UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT; REFERRING THE PROPOSAL TO THE MINNESOTA ENERGY AND ECONOMIC DEVELOPMENT AUTHORITY FOR APPROVAL; AND AUTHORIZING PREPARATION OF NECESSARY DOCUMENTS (F & T JOINT VENTURES PROJECT) BE IT RESOLVED by the City Council of the City of Hutchinson, Minnesota (the Municipality), as follows: SECTION 1 Recitals and Findings 1.1. This Council has received a proposal that the Municipality finance a portion or all of the cost of a proposed project under'Minnesota Statutes, Chapter :474 (the Act), consisting of the acquisition of land and the existing buildings thereon and to renovate and rehabilitate the buildings as a commercial building containing approximately 36,122 square feet to be located at 4 Main Street South and 40 Washington Avenue West in the Municipality (the Project) by F & T Joint Ventures, a Minnesota general partnership (the Borrower), to be leased by the Borrower to various tenants. 1.2. At a public hearing, duly noticed and held on August 28, 1984, in accordance with the Act and Section 103(k) of the Internal Revenue Code of 1954, as amended, on the proposal to undertake and finance the Project, all parties who appeared at the hearing were given an opportunity to express their views with respect to the proposal to undertake and finance the Project and interested persons were given the opportunity to submit written comments to the City Administrator before the time of the hearing. Based on the public hearing, such written comments (if any) and such other f4cts and circumstances as this Council deems relevant, this Council hereby finds, determines and declares as follows: (a) The welfare of the State of Minnesota requires active promotion, attraction, encouragement and development of economically sound industry and commerce through governmental acts to prevent, so far as possible, emergence of blighted lands and areas of chronic unemployment, and the State of Minnesota has encouraged local government units to act to prevent such economic deterioration. -3- F C1 (b) The Project would further the general purposes contemplated and described in Section 474.01 of the Act. (c) The existence of the Project would add to the tax base of the Municipality, the County and the School District in which the Project is located and would provide increased opportunities for employment for residents of the Municipality and surrounding area. (d) This Council has been advised by representatives of the Borrower that conventional, commercial financing to pay the cost of the Project is available only on a limited basis and at such high costs of borrowing that the economic feasibility of operating the Project would be significantly reduced, but that with the aid of municipal borrowing, and its resulting lower borrowing cost, the Project is economically more feasible. (e) this Council has also been advised by representatives of the Borrower that on the basis of their discussions with potential buyers of tax - exempt bonds, revenue bonds of the Municipality (which may be in the form of a commercial development revenue note or notes) could be issued and sold upon favorable rates and terms to finance the Project. (f) The Municipality is authorized by the Act to issue its revenue bonds to finance capital projects consisting of properties used and useful in connection with a revenue producing enterprise, such as that of the Borrower, and the issuance of the bonds by the Municipality would be a substantial inducement to the Borrower to acquire, construct and equip the Project. SECTION 2 Determination to Proceed with the Project and its Financing 2.1. On the basis of the information given the Municipality to date, it appears that it would be desirable for the Municipality to issue its revenue bonds under the provisions of the Act to finance the Project in the maximum aggregate face amount of $400,000. 2.2. It is hereby determined to proceed with the Project and its financing and this Council hereby declares its present intent to have the Municipality issue its revenue bonds under the Act to finance the Project. Notwithstanding the foregoing, however, the adoption of this resolution shall not be deemed to establish a legal obligation on the part of the Municipality or -4- its City Council to issue or to cause the issuance of such revenue bonds. All details of such revenue bond issue and the provisions for payment thereof shall be subject to final approval of the Project by the Minnesota Energy and Economic Development Authority and may be subject to such further conditions as the Municipality may specify. The revenue bonds, if issued, shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the Municipality, except the revenues specifically pledged to the payment thereof, and each bond, when, as and if issued, shall recite in substance that the bond, including interest thereon, is payable solely from the revenues and property specifically pledged to the payment thereof, and shall not constitute a debt of the Municipality within the meaning of any constitutional, statutory or charter limitation. 2.3. The Application to the Minnesota Energy and Economic Development Authority, with attachments, is hereby approved, and the Mayor and City Administrator are authorized to execute said documents on behalf of the Municipality. 2.4. In accordance with Section 474.10, Subdivision 7a of the Act, the Mayor and City Administrator are hereby authorized and directed to cause the Application to be submitted to the Minnesota Energy and Economic Development Authority for approv =:1 of the Project. The Mayor, City Administrator, City Attorney and other officers, employees and agents of the Municipality are hereby authorized and directed to provide the Authority with any preliminary information needed for this purpose. The City Attorney is authorized to initiate and assist in the preparation of such documents as may be appropriate to the Project, if approved by the Authority. SECTION 3 General 3.1. If the bonds are issued and sold, the Municipality will enter into a lease, sale or loan agreement or similar agreement satisfying the requirements of the Act (the Revenue Agreement) with the Borrower. The lease rentals, installment sale payments, loan payments or other amounts payable by the Borrower to the Municipality under the Revenue Agreement shall be sufficient to pay the principal of, and interest and redemption premium, if any, on the bonds as and when the same shall become due and payable. 3.2. The Borrower has agreed and it is hereby determined that any and all direct and indirect costs incurred by the Municipality in connection with the Project, whether or not the -5- • • Project is carried to completion, and whether or not approved by the Minnesota Energy and Economic Development Authority, and whether or not the Municipality by resolution authorizes the issuance of the bonds, will be paid by the Borrower upon request. 3.3. The Mayor and City Administrator are directed, if the bonds are issued and sold, thereafter to comply with the provisions of Minnesota Statutes, Section 474.01, Subdivisions 8 and 11. Attest: Adopted this 28th day of August, 1984. ayor City Administrator The motion for the adoption of the foregoing resolution was duly seconded by Member and upon vote being taken thereon, the following voted in favor t'h.PT "F!nf : aiid Lhe following voted against the same: wii��u-upon the resolution was declared duly passed and adopted and was signed by the Mayor which signature was attested by the City Administrator. -6- August _, 1984 Minnesota Energy and Economic Development Authority 480 Cedar Street St. Paul, Minnesota 55101 Ladies and Gentlemen: We have reviewed Resolution No. adopted by the governing body of Hutchinson, Minnesota (the City), on August 28, 1984, entitled "Resolution Giving Preliminary Approval to a Project and its Financing Under the Municipal Industrial Development Act; Referring the Proposal to the Minnesota Energy and Economic Development Authority for Approval; and Authorizing Preparation of Necessary Documents, (F & T Joint Ventures Project)" relating to a proposal that the City issue its revenue bonds under Minnesota Statutes, Chapter 474, Lu finance, in whole or in part, a project on behalf of F & T Joint Ventures, a Minnesota general partnership (the Borrower). on the basis of our review of the resolution and preliminary discussions with representatives of the Borrower as to the nature of the project and the proposed financing, it is presently our opinion that the project constitutes a "project" within the meaning of Minnesota Statutes, Section 474.02, Subdivision 1, and that the City is authorized, assuming further proceedings are taken in accordance with the provisions of Chapter 474 and any other applicable law, to issue its revenue bonds as proposed by the resolution. Very truly yours, DORSEY & WHITNEY By Jerome P. Gilligan • • COMPREHENSIVE STATEMENT The undersigned, being the duly qualified and acting Mayor and City Administrator of the City of Hutchinson, Minnesota (the Municipality), certify that the City Council has been provided by a representative of F & T Joint Ventures, a Minnesota general partnership (the Borrower), with certain information concerning a proposed Project under the Minnesota Municipal Industrial Development Act, Minnesota Statutes, Chapter 474. On the basis of such information the City Council, by resolution adopted August 28, 1984, has given preliminary approval to the proposed Project and the financing thereof by the issuance of revenue bonds of the Municipality. . The following are factors considered by the City Council in determining to give preliminary approval to the Project: 1. The Project consists generally of the acquisition of land and the existing buildings located thereon and to renovate and rehabilitate the buildings as a commercial building containing approximately 36,122 square feet (the Project) to be leased to various tenants. The Project is located at 4 Main Street South and 40 Washington Avenue West in th Municipality. 2. Bond Counsel is of the opinion that the Project constitutes a "project" within the meaning of Minnesota Statutes, Section 474.02, Subdivision 1. of $ 3. Based upon an estimated total cost of construction it is the opinion of the City Council that the Project, when completed, will add to the commercial tax base of the Municipality, the County and the School District in which the Project is located. 4. Representatives of the Borrower estimate that upon completion of the Project, approximately persons will be employed in the operation of the Project, which would provide increased employment opportunity for residents of the A ";_::icipality and the surrounding area. 5. Representatives of the Borrower estimate that the acquisition, construction and equipping of the Project will result in an annual payroll of approximately $ based on wage rates currently in effect. The City Council believes that a st= hstantial percentage of that payroll will be spent on housii,g, food and other goods and services in the Municipality and the -:rrounding area, thus benefiting the local economy. 6. The Municipality will provide the Minnesota Energy and Economic Development Authority with the information required by Minnesota Statutes, Section 474.01, Subdivision 8, upon entering into a revenue agreement (as defined in the Act) with the Borrower, and the information required by Minnesota Statutes, Section 474.01, Subdivision 11 as required. 7. The Project does not include any property to be sold or affixed to or consumed in the production of property -2- 4 0 • for sale, and does not include any housing facility to be rented or used as a permanent residence. 8. A public hearing on the proposal to undertake and finance the Project was conducted pursuant to Minnesota Statutes, Section 474.01, Subdivision 7b and Section 103(k) of the Internal Revenue Code of 1954, as amended, on August 28, 1984, at 8:00 o'clock P.M., at the City Hall, at which public hearing all interested parties were afforded an opportunity to express their views. Dated: August 28, 1984. Mayor (5EAL) City Administrator -3- ,Draft of Feasibility Letter] Honorable Mayor and City Council City of Hutchinson 37 Washington Avenue West Hutchinson, Minnesota 55350 Re: Bonds: Proposed $400,000 Industrial Development Revenue Bonds City of Hutchinson, Minnesota Project: (F & T Joint Ventures Project) Borrower: F & T Joint Ventures Gentlemen: At the request of the above -named Borrower, we have conducted a study of the preliminary economic feasibility of the proposal that the City of Hutchinson, Minnesota, issue the above -named Bonds under the provisions of Minnesota Statutes, Chapter 474, to finance, in whole or in part, the above -named Project. Our study has led us to conclude that on the basis of current financial conditions, the project is economically feasible and the proposed industrial development revenue bonds of the City can be successfully issued and sold. We understand a copy of this letter will be forwarded by the .ity to the Energy and Economic Development Authority of the Stria of Minnesota to serve as the feasibility letter require6 by the Authority. Very truly yours, • 0 This Application must be submitted in DUPLICATE STATE MINNESOTA MINNESOTA ENERGY AND ECONOMIC DEVELOPMENT AUTHORITY Application For Approval of Municipal Industrial Revenue Bond Project o: Minnesota Energy and Economic. Development Authority 480 Cedar St., Rm. 100 Hanover Bldg. St. Paul, Minnesota 55101 Date August , 1984 he governing body of Hutchinson County of McLeod , Minnesota, ereby applies to the Minnesota Energy and conomic Development Authority of the fate of innesota for approval of this community's proposed Municipal Industrial Revenue Bond issue as equired by Minn. Stat. 5474.01, Subd. 7a. e have entered into preliminary discussions with: Firm F & T Joint Ventures Address Minnesota general partnership City Hutchinson State Minnesota Xaifcc>¢xp�nax�t0[a Attorney Address Name of Project F & T Joint Ventures Project '.-pis firm is primarily in (nature of business): he funds rep'.; r;; from the sale of the Industrial Revenue Bonds will be used to (general ature of pro*-c --fl: acquire land and buildings located thereon and renovate and ehabilitate buildings as a commercial building to be leased to various - enants. t will be located *g at 4 Main Street South and 40 Washington Avenue West in u c inson, Minnesota he total bond issue will be approximately $ 400,000 to be applied toward payment costs now estimated as follows: Acquisition, reconstruction, improvement, betterment, or extension of project S Construction Costs Equipment Acquisition and Installation Fees:. Architectural, engineering, inspec- tion, fiscal, legal, administration, or printing Interest accrual during construction Initial bond reserve Contingencies Bond discount Other C ssently estimated that construction will begin on or about and will be completed on or about , 19 approximately new jobs created by the project at an annual Y b based upon currently prevailing wages. (If ^xisting jobs provided by business. When completed, there payroll of approxi- applicable) There are lf:!ative term of the financing is years, commencing , 19_ Following exhibits are furnished with this application and are incorporated herein by ,;e: An opinion of bond counsel that the proposal constitutes a project under Minn. Stat. 5474.02. ?. A copy of the city council resolution giving preliminary approval for the issuance of its revenue bonds. 3. -A comprehensive statement by the municipality indicating how the project satisfies the public purpose of Minn. Stat. 5474.01. 1 -> A letter of intent to purchase the bond issue or a letter confirming the feasibil- ity of the project from a financial standpoint. 5. A statemenL. signed by the principal representative of the issuing authority to the effect that upon entering into the revenue agreement, the information required by Minn. Stat. 5474.01; Subd. 8 will be submitted to the;Minnesota Energy and Economic Develtopn,. Authority. i. A statement signed by the principal representative of the issuing authority that- the project dnFs not include any property to be sold or affixed to or consumed in the product;oij of property for sale, and does not include any housing facility to be rented or used as a permanent residence. 7. A statement signed by the principal representative of the issuing authority that a public hewd,iy was conducted pursuant to Minn. Stat. 5474.01, Subd. 7b. -The statement shall include the date, time and place of the meeting and that all interested p.-rties were afforded an opportunity to express their views. B. Copies of notice(s) as published which indicate the date(s) of publication and the newspaper(s) in which the notice(s) were published. 9. Provide a plat. for co -mpliance of employment preference of economically disadvan- taged or unemployed individuals. (See Mn. Laws 1983, Ch. 289, 113.) she undersiy„v--UJ, are duly elected representatives of Hutchinson , Minnesota solicit your approval of this project at your earliest convenience so that we may carry it_ final conclusion. ed by: (Principal Officers or Representatives of Issuing Authority; type or print Mayor's name on the line to the left of the signature line. Thank you. R. H. Stearns r'$ -name Gary D. Plotz _: City Administrator gnature approval shall not be deemed to be an approval by the Authority or the State of the �)ility of the project or the terms of the revenue agreement to be executed or the bonds to sued therefor. Date of Approval irized Signature - Minnesota[nergy and Economic ,,elopment Authority o 510 NORTH CENTRAL UFE TOWER 445 MINNESOTA STREET ST. PAUL,MINNESOTA 55101 (612) 22]-8017 P. O. 80K 848 340 FIRST NATIONAL BANK BUILDING ROCHESTER,MINNESOTA 55903 (501) 288 -3156 312 FIRST NATIONAL BANK BUILDING WAYZATA, MINNESOTA 55391 (812)475 -0373 • • DORSEY & WHITNEY A Perm sh,p Including Pmfess,one/ Cp p"hons 2200 FIRST BANK PLACE EAST MINNEAPOLIS, MINNESOTA 55402 ( 612) 340 -2600 TELEX:29 -0605 TELECOPIER; (612)340 -2866 JEROME P. GILUGAN (612) 340 -2962 August 23, 1984 Mr. James Schaefer 105 Second Avenue Southwest P.O. Box 363 Hutchinson, Minnesota 55350 Dear Jim: 201 DAVIDSON BUILDING B THIRD STREET NORTH GREAT FALLS,MONTANA 59401 (406) 721-3632 SURE 675 NORTH 1800 M STREET N. W. WASHINGTON, D. C. 20036 (202) 955-1085 30 RUE LA SOETIE 73008 PARIS, FRANCE 011 331 562 32 50 Enclosed is a proposed "master" form of Agreement between the City and the applicants to the City (Frank Fay and F & T Joint Ventures) for the issuance of industrial development bonds. A separate agreement should be used for each applicant. The Agreement is along the lines we spoke about with the applicant agreeing that the preliminary resolution is not a contract between the City and the applicant and that the City is under no obligation to issue the bonds. In addition, the applicant further agrees to pay the City's expenses. The Agreement should be executed pzLLor to the adoption of the preliminary resolution in order to provide consideration for the agreement by the City. If you have any questions or comments, please call me. JPG:cmn Enclosure k,,6c-: Gary D. Plotz Yours truly, Jerome P. Gilligan S k I AGREEMENT THIS AGREEMENT, between the City of Hutchinson, Minnesota, a municipal corporation and political subdivision of the State of Minnesota (the City), and , a Minnesota (the Applicant), provides as follows: 1. Among the matters of mutual inducement which have resulted in this Agreement are the following: (a) The City is authorized and empowered by the provisions of Chapter 474, Minnesota Statutes, as amended (the Act).. to issue revenue bonds to defray, in whole or in part, the costs of a project as defined in the Act. (b) The Applicant has proposed that the City, pursuant to the Act, issue its revenue bonds to defray, in whole or in part, the costs to be incurred in connection with a project under the Act (the Project), and that the City and Applicant enter into a lease, sale or loan agreement or similar agreement satisfying the requirements of the Act (the Revenue Agreement). (c) As required by Section 474.01, Subdivision 7b of the Act, the City, after notice published as required by that Section, will conduct a public hearing on the proposal to undertake and finance the Project and issue revenue bonds under the Act in an amount not exceeding $ (the Bonds), to defray in whole or in part, the costs of the Project. (d) The Bonds shall be special obligations of the City and the principal of and interest on the Bonds shall be payable solely out of the revenues derived from amounts payable to the City by the Applicant pursuant to the provisions of the Revenue Agreement and from other revenues or property specifically pledged to the payment thereof. (e) The Applicant has requested that the City, subsequent to the scheduled public hearing, adopt a resolution giving preliminary approval to the Project and the issuance of the Bonds (the Preliminary Resolution), in order to constitute "some other official action" toward the issuance of the Bonds within the meaning of Treasury Regulations, Section 1.103- 8(a)(5)(iii) promulgated under Section 103 of the Internal Revenue Code of 1954, as amended. 2. The Applicant acknowledges and agrees that if the City adopts the Preliminary Resolution, such Preliminary Resolution does not in any manner whatsoever constitute a contract between the Applicant and the City and obligate the City in any manner and that the City is under no obligation to issue the Bonds and reserves the right to decline to issue the Bonds, without obligation. 3. The Applicant agrees that it will reimburse the City for all reasonable and necessary direct out -of- pocket expenses which the City may incur, including the fees and expenses of the City Attorney and of Dorsey & Whitney of Minneapolis, Minnesota, bond counsel to the City, arising from the holding of the public hearing and adoption of the Preliminary Resolution and from the exa_'cution of this Agreement and the performance by the City of its obligations hereunder without regard to whether or not the Bonds are issued by the City. IN WITNESS WHEREOF, the parties hereto have entered into this Agreement this day of ; 1984. (SEAL) CITY OF HUTCHINSON, MINNESOTA By Mayor And City Administrator [APPLICANT] • -2- 0 August 23, 1984 Mr. James Schaefer 105 Second Avenue Southwest P.O. Box 363 Hutchinson, Minnesota 55350 Dear Jim: 201 DAV OSON BUILDING 8 THIRD STREET NORTH GREAT FALLS, MONTANA 59401 (406)727 -3632 SUITE 675 NORTH 1800 M STREET N. W. WASHINGTON,D. C.20036 (202) 955-1065 30 RUE LA BOERE 75006 PARIS, FRANCE Oil 331 362 32 50 Enclosed is a proposed "master" form of Agreement between the City and the applicants to the City (Frank Fay and F & T Joint Ventures) for the issuance of industrial development bonds. A separate agreement should be used for each applicant. The Agreement is along the lines we spoke about with the applicant agreeing that the preliminary resolution is not a contract between the City and the applicant and that the City is under no obligation to issue the bonds. In addition, the applicant further agrees to pay the City's expenses. The Agreement should be executed prior to the adoption of the preliminary resolution in order to provide consideration for the agreement by the City. If you have any questions or comments, please call me. Yours truly, Jerome P. Gilligan - JPG:cmn Enclosure v6c: Gary D. Plotz -4 1 HORSEY & WHITNEY A Partnership Including PFOlessron9l Cwpwa6ons 2200 FIRST BANK PLACE EAST 310 NORTH CENTRAL LIFE TOWER MINNEAPOLIS, MINNESOTA 55402 445 MINNESOTA STREET ( 612) 340-2500 ST. PAUL, MINNESOTA 55101 (62)227 -8017 TELEX: 29 -0605 TELECOPIER: (612)340 -2666 P. O. Box B46 340 FIRST NATIONAL BANK BUILDING ROCHESTER, MINNESOTA 55903 (5071280-3156 312 AYZATA,MINNESOTA BUILDING JEROME P. GILUGAN (612) 475- 0373 (612) 340 -2962 August 23, 1984 Mr. James Schaefer 105 Second Avenue Southwest P.O. Box 363 Hutchinson, Minnesota 55350 Dear Jim: 201 DAV OSON BUILDING 8 THIRD STREET NORTH GREAT FALLS, MONTANA 59401 (406)727 -3632 SUITE 675 NORTH 1800 M STREET N. W. WASHINGTON,D. C.20036 (202) 955-1065 30 RUE LA BOERE 75006 PARIS, FRANCE Oil 331 362 32 50 Enclosed is a proposed "master" form of Agreement between the City and the applicants to the City (Frank Fay and F & T Joint Ventures) for the issuance of industrial development bonds. A separate agreement should be used for each applicant. The Agreement is along the lines we spoke about with the applicant agreeing that the preliminary resolution is not a contract between the City and the applicant and that the City is under no obligation to issue the bonds. In addition, the applicant further agrees to pay the City's expenses. The Agreement should be executed prior to the adoption of the preliminary resolution in order to provide consideration for the agreement by the City. If you have any questions or comments, please call me. Yours truly, Jerome P. Gilligan - JPG:cmn Enclosure v6c: Gary D. Plotz -4 1 I AGREEMENT THIS AGREEMENT, between the City of Hutchinson, Minnesota, a municipal corporation and political subdivision of the State of Minnesota (the City), and , a Minnesota (the Applicant), provides as follows: 1. Among the matters of mutual inducement which have resulted in this Agreement are the following: (a) The City is authorized and empowered by the provisions of Chapter 474, Minnesota Statutes, as amended (the Act)._ to issue revenue bonds to defray, in whole or in part, the costs of a project as defined in the Act. (b) The Applicant has proposed that the City, pursuant to the Act, issue its revenue bonds to defray, in whole or in part, the costs to be incurred in connection with a project under the Act (the Project), and that the City and Applicant enter into a lease, sale or loan agreement or similar agreement satisfying the requirements of the Act (the Revenue Agreement). (c) As required by Section 474.01, Subdivision 7b of the Act, the City, after notice published as required by that Section, will conduct a public hearing on the proposal to undertake and finance the Project and issue revenue bonds under the Act in an amount not exceeding $ (the Bonds), to defray in whole or in part, the costs of the Project. (d) The Bonds shall be special obligations of the City and the principal of and interest on the Bonds shall be payable solely out of the revenues derived from amounts payable to the City by the Applicant pursuant to the - provisions of the Revenue Agreement and from other revenges or property specifically pledged to the payment thereof. (e) The Applicant has requested that the City, subsequent to the scheduled public hearing, adopt a resolution giving preliminary approval to the Project and the issuance of the Bonds (the Preliminary Resolution), in order to constitute "some other official action" toward the issuance of the Bonds within the meaning of Treasury Regulations, Section 1.103- 5(a)(5)(iii) promulgated under Section 103 of the Internal Revenue Code of 1954, as amended. 2. The Applicant acknowledges and agrees that if the City adopts the Preliminary Resolution, such Preliminary Resolution does not in any manner whatsoever constitute a contract between the Applicant and the City and obligate the City in any manner and that the City is under no obligation to issue the Bonds and reserves the right to decline to issue the Bonds, without obligation. 3. The Applicant agrees that it will reimburse the City for all reasonable and necessary direct out -of- pocket expenses which the City may incur, including the fees and expenses of the City Attorney and of Dorsey & Whitney of Minneapolis, Minnesota, bond counsel to the City, arising from the holding of the public hearing and adoption of the Preliminary Resolution and from the execution of this Agreement and the performance by the City of its obligations hereunder without regard to whether or not the Bonds are issued by the City. IN WITNESS WHEREOF, the parties hereto have entered into this Agreement this day of 1984. (SEAL) h CITY OF HUTCHINSON, MINNESOTA By Mayor And City Administrator [APPLICANT] g1% ( 672) 587 -5151 � CITY OF HUTCHINSON 37 WASHINGTON AVENUE WEST HUTCHINSON, MINN. 55350 M E M O R A N D U M DATE: August 3,_]984 T0: Mayor and City- Coupc-iL — — — — — — — — — — — — — — — — — — FROM: John Bernhagen� Exec, Director UDC_ _ _ _ _ _ _ _ _ _ _ _ SUBJECT: Parkview Plaza ______________________ The Hutchinson Community Development Corporation (HCDC) has met with Parkview Plaza developers and has taken formal action on two of those occasions. Enclosed as Exhibit A are the two resolutions. The development prof orma and other supporting information along with on -going discussion with the developers, placed the project in the realm of possibility. The board therefore acted in the affirmative (June 12, 1984), During the time that followed, it appeared the amounts cited for purchase of the old fire hall were contemplated at a lower cost than what was expected. The developers, therefore, came with a revised proposal including a safety building to be leased by the City. This proposal was discussed and recommended in concept by HCDC (July 12, 1982) with the understanding that the legal ramifi- cations of a lease provision were to be explored. All types of lease arrangements proved to be unsatisfactory. In visiting with the developers, it was their determination to proceed with the original project with a revised amount for the old fire hall based on an appraisal. The project will make use of tax increment financing and Industrial Revenue Bonds (IRB's). It is HCDC's judgment that this project is a proper use of both financial tools and very positively fits the legislative intent for their use. The entire project will enhance our City, increase the tax base and present a financial project in a cooperative effort using public and private financing. 0 • EXHIBIT A HUTCHINSON COMMUNITY DEVELOPMENT CORPORATION Board of Directors Meeting June 5, 1984 Micheal Saxton of Trucker Development, Inc. and Frank Fay presented their plan for developing the old Hutchinson Hotel building, plus other property to be called Parkview Plaza. After their presentation and questions it was decided to bring this matter be- fore the board again during the week of June 11th, 1984 for disposition. June 12, 1984 - 7:00 a.m. The meeting was .called to order by Ron McGraw, Chairman. Others present were: Don Glas, Art Cooper, John Bernhagen, Clarice Coston and Gary Plotz. Parkview Plaza ,project was discussed and the following resolution was passed: The Board of-Directors of the Hutchinson Community Development Corporation recommend approval of the Parkview Plaza project as presented by the developers contingent upon pre sold condominium units as determined by the private financing firm but not to be less than 50% of the units sold prior to the sale of the tax increment bonds by the city. This action will be forwarded to the developers and the city of Hutchinson. HUTCHINSON OOMN.UNITY DEVELOPMENT CORPORATION Board of Directors Meeting July 12,1984 Micheal Saxton of Trucker Development Inc. presented a revised building and rede- velopment concept for Park Plaza. A motion was made, seconded and carried as follows: Recind the action taken on June 5, 1984 pertaining to Trucker Development Inc.. HCDC approves in concept the proposal submitted by Trucker Development Inc. on July 12 as contained in their letter of July 11, 1984. Trucker Development Inc. is to provide the full repayment guarantee for the tax increment bond issued by the city. • 510 NORTH CENTRAL LIFE TOWER 445 MINNSOTA STREET BY PAUL,MINNESOTA 55101 (612)227 -5017 P, O- BOX 64e 340 FIRST NATIONAL BANK BUILDING ROCHESTER,MINNESOTA 55903 l50712BE-3156 312 FIRST NATIONAL BANK BUILDING WATZATA, M INNESOTA _5391 (6,2;.75 0373 DORSEY & WHITNEY A Parinershlp Including Professional Corporations 2200 FIRST BANK PLACE EAST MINNEAPOLIS, MINNESOTA 55402 (612) 340-2600 TE LEX: 26-060. T ELE00PIER :1612)340-2868 JEROME P. GILLIGAN (612) 340 -2962 August 8, 1984 Mr. Gary D. Plotz City Administrator 37 Washington Avenue West Hutchinson, Minnesota 55350 Mr. Kenneth Merrill Hutchinson City Hall 37 Washington Avenue West Hutchinson, Minnesota 55350 Mr. James Schaefer 105 Second Avenue Southwest P.O. Box 363 Hutchinson, Minnesota 55350 Mr. William Fahey Ehlers & Associates 120 First National Bank -Soo Line Concourse Minneapolis, Minnesota 55402 Gentlemen: • Re: Proposed Downtown Redevelopment Project 201 CAVIDSON BUILDING e THIRD STREET NORTH GREAT FALLS, MONTANA 50401 (406):27 -3632 SUITE 675 NORTH BOO M STREET N. W. WASHINGTON .D 0.20036 (202) 9 55 -1065 30 RUE LA 6JETIE 75GCe oACIS. f RANCE Oil 331 562 32 50 1zs,C v`� C A. iv At our meeting on July 26th I expressed a concern that if the City of Hutchinson issues industrial development revenue bonds to finance a public safety building to be constructed and owned by Frank Fay and leased to the City and at or prior to the issuance of the bonds the City invests federal revenue sharing funds at a yield in excess of the yield on the bonds and uses the investment income on such investments to make the lease payments to Mr. Fay, the bonds may constitute arbitrage bonds under Section 103(c) of the Internal Revenue Code and the interest on the bonds will not be exempt from Federal income taxation. Upon reviewing the proposal further, it appears to us that without a favorable ruling from the Internal Revenue Service J DORSEY $ WHITNEY Page -2- Mr. Gary D. Plotz Mr. Kenneth Merrill Mr. James Schaefer Mr. William Fahey August 8, 1984 on the question, we would be unable to render an opinion that the industrial development revenue bonds proposed to be issued will not be arbitrage bonds. Section 103(c) of the Internal Revenue Code provides generally that bonds issued by a state or municipality will be "arbitrage bonds ", the interest on which will not be exempt from federal income tax, if the proceeds are reasonably expected to be invested in obligations with a yield that is higher than the yield on the bonds. Under the regulations there are various so called "temporary periods" during which proceeds of bonds can be invested in obligations at an unrestricted yield, the most common of which is 3 years in the case of construction project if certain conditions are met. The regulations also restrict the yield on sinking funds which are defined as any fund reasonably expected to pay the bonds, even if the fund is not derived from or attributable to bond proceeds in any way. In the case of the present proposal we are concerned that since the investment income on the revenue sharing funds would be expected to be used by the City to make the lease payments which are the only source of revenue to pay the principal of and interest on the bonds, such funds would constitute a sinking fund on which the yield would have to be restricted. One possible solution the City may wish to explore is to use the revenue sharing funds to make improvements in a revenue producing utility of the City, such as the water or sewer utility, and then annually appropriate revenues derived from the utility to make the lease payments. These appropriated revenues would otherwise have been used to pay debt service on obligations issued to finance the improvements. Assuming that there are improvements that need to be done and the proposal is feasible we would need to examine any existing bond resolutions for bonds for which such revenues are pledged to ensure such an appropriation is permitted. Since the revenue sharing funds would not be invested in obligations this would not constitute arbitrage. This may not be as attractive to the City since it would not have the guaranteed source of income that it would have if it invested in government obligations and in addition the City is most likely receiving a smaller return on its investment. However, it has an advantage in that the revenue sharing funds have now been expended and alleviates the concern about whether the investment of the revenue sharing funds in interest bearing securities is permitted. 0 • • Page -3- Mr. Gary D. Plotz Mr. Kenneth Merrill Mr. James Schaefer Mr. William Fahey August 8, 1984 DORSEY $ WHITNEY 0 One other thing the City should consider as it examines this proposal is the possibility of investing a portion of the revenue sharing funds to pay the purchase price of the public safety building at the expiration of the lease term. Assuming it is a permitted use of revenue sharing funds, the City could invest in zero coupon government obligations to fund the purchase price. The investment of funds to pay the purchase price will not constitute arbitrage since such funds would not be expected to be used to pay principal or interest on the bonds. Another possibility raised at the meeting was the use of a tax exempt lease. This would still have the same arbitrage limitations and may limit the use of tax increments for the project since it would appear to be more in the nature of a municipally owned building. In examining the possibilities of using a tax exempt lease, it appears that the market for such an obligation is limited because of the length of the lease and the fact it involves real estate. Consequently, the only potential purchasers appear to be local banks. If we proceed with a tax exempt lease (or any. lease for that matter which involves a nominal purchase price) in order to avoid an argument that it is an installment purchase contract and consequently run afoul of some troubling statutory language in Minnesota Statutes, Section 463.71, the lease should contain a provision which allows the City to terminate the lease at the end of any fiscal year if it so determines. If any of you have any questions concerning the matters discussed in this letter, please give me a call. Yours truly, Jer /e P. G i.�Jigan JPG:cmn (1) • Trucker Sheehy Constructors Inc. P.O. Box 9393 ar Minneapolis, MN 55440 TELEPHONE 16121874.6420 July 11, 1984 Mr. John Bernhagen, Executive Director Community Development Corporation City of Hutchinson 37 Washington Avenue West Hutchinson, Minnesota 55350 Dear Mr. Bernhagen: • This letter is written to provide an outline complete with preliminary back -up data for the redevelopment of the Hutchinson Hotel, Vision World, Old Fire Station and the construction of a Public Safety Building on the Wendorph property. We propose that the acquisition of the aforementioned properties be con- ducted using tax increment financing as follows: City Purchase Owner or Resale to % Paid by Property Price Optn Holder TDI Developer Hotel $250,000 F. Fay $ 85,000 35% Vision World 45,000 F. Fay 45,000 100% Fire Station 130,000 City 130,000 100% Wendorph 130,000 F. Fay -0- -0- (S 60, Tax increment proceeds required equal $295,000.00. The following calculations of the increment generated by the project have been conducted in accord with information provided by the County Assessor's office. 2344 NICOLLET AVE. 60, • MINNEAPbLIS, MN 55404 Mr. John Bernhagen, Executive Director Community Development Corporation City of Hutchinson July 11, 1984 Page Two Commercial Retail 100,000 (2 x 50,000) x .34 = 750,000 x .43 = Residential 15 units x 30,000 = 450,000 x 262,875 x 34,000 322,500 356,0 x .118639 = $42,294 .17 = 76,500 .19 = 49,946 129,446 x .118639 = 15,001 $57,295 Less Base $10,000 Estimated Increment $47,295 The increment generated is approximately $47,300 which, when assuming a 10% interest rate on a 15 year bond issue, could produce approximately $365,000 in bond proceeds less $70,000 for bond sale expenses and reserves. Thus, the $295,000 bond proceed requirements for the acquisition write- down could be met. In addition to the tax increment acquisition write -down listed above, we request that the City approve the sale of $365,000 in Industrial Revenue Bonds to support the acquisition and rehabilitation of the commercial space as follows: Acquisition (Commercial) Hotel $ 85,000 Vision World 45,000 Rehabilitation (Commercial) Hotel $160,000 Vision World 35,000 Bond Expenses $130,000 $195,000 $ 40,000 365,000 • 0 Mr. John Bernhagen, Executive Director Community Development Corporation City of Hutchinson July 11, 1984 Page Three The construction of the new Public Administration Building will be con- ducted through the use of a tax exempt mortgage with the City executing a 15 -20 year lease. The estimated construction cost of the new facility is $400,000 and a triple net lease of approximately $6,130.00 per month would be established (therefore, the City's cost per month would be $6,130 plus utilities, taxes, insurance, etc). Conventional financing would be secured by the Developer for the acquisition of the Fire Station ($130,000) and the conversion of the Fire Station to parking and the second and third floor of the Hotel to residential con- dominium units ($420,000 approximately) Total ($550,000 approximately). We as the Developer are prepared to proceed with this program as soon as possible. Please indicate whether the City is able to execute a lease with a private developer without requiring a referendum and without re- quiring public bidding of the construction of the improvements. We look forward to hearing from you at your earliest convenience regarding the next step in processing our development proposal. Sincerely, TRUCKER DEVELOPMENT INC. Michael W. Saxton 0 June 12, 1984 To: Parkview Plaza developers - Frank Fay Micheal Saxton City of Hutchinson - Mayor Bob Stearns Gary Plotz From: John Bernhagen, Exec. Director HCDC P Subject: Recommendation of Board of Directors of HCDC regarding Parkview Plaza On June 12, 1984 the Board of Directors of the Hutchinson Community Devel- opment Corporation passed the following resolution. The Board of Directors of the Hutchinson Community Development Corporation recommend approval of the Parkview Plaza project as presented by the devel- opers contingent upon pre sold condominium units as determined by the private financing firm but not to be less than 50% of the units sold prior to the sale of the tax increment bonds by the city. / I Trucker ■1►. Sheehy Constructors INC. I P.O. Box 9393 • Minneapolis. MN 55440 TELEPHONE (6121874-6420 June 5, 1984 John Bernhagen, Executive Director Community Development Corporation City of Hutchinson 37 Washington Avenue West Hutchinson, Minn 55350 RE: Parkview Plaza and Related Improvements Dear Mr. Bernhagen, Please find attached a copy of the Development Analysis, which was done in accord with our discussions of June 5th. As can be seen, the combination of increased Bond finance expense, capitalized interest and debt service payments makes this approach infeasible unless the increase realized in profit on unit sales is applied to reduce the mortgage debt service. This approach would indirectly return us to the first development analysis assumption but would result in additional negative attributes in that added short term capital gains tax would be required on the increased 1st year profit from unit sales. We have reached the conclusion that any debt in excess of $300,000 @ 11}% 25 year amortization on the commercial aspect of the project would result in a negative cash flow position which is unacceptable to us at this time. This approach might be feasible if the long term tax shelter provided would be of benefit to the Developer. However, most of this benefit is offset by the short term exposure realized on the increased profits from the sale of the units. In closing I'd like to reiterate our interest in proceeding with this project as soon as possible. I regret that our analysis leaves us with no apparent alternate to our proposed 100,000 acquisition of the old Fire Station. 2344 N16OLLET AVE. SO: • MINNEAPOLIS, MN 55440 Page 2 June 5, 1984 John Bernhagen, Executive Director I look forward to hearing from you on the CDC recommendation and will await direction relative to our next step in processing our proposal and requests. Sincerely, TRUCKER DEVELOPMENT INC. Midhael W. Saxton MWS /jr rJ Trucker ® Sheehy ■ Constructors ( INC.1 ® P.O. Box 9393 • Ml."spuiis. MN 86440 TELEPHONE (6121874 -8420 May 30, 1984 John Bernhagen, Executive Director Community Development Corporation City of Hutchinson 37 Washington Avenue West Hutchinson, Minn 55350 RE: Proposed Parkview Plaza and Related Improvements Dear Mr. Bernhagen, Thank you for the opportunity that you gave us to meet with you on May 15. Please find enclosed a copy of our concept for the development of which we discussed, entitled Parkview Plaza. The development would include the conversion and restoration of the Hutchinson Hotel building (condominium residential units on the second and third floor and commercial retail space on the first floor), the acquisition and conversion of the old Fire Station to provide enclosed parking (support of the Residential project in the Hotel building) and acquisition and restoration of the existing Vision Center (commercial retail use). We have enclosed the preliminary development proforma (financial analysis) for the aforementioned project, which prompted the May 15 meeting in which we discussed the potential use of Tax Increment and Industrial Revenue Bond financing to write down the acquisition costs and assist in the commercial retail rehabilitation of the project. I am in receipt of a,letter dated May 15, 1984 from Gary P.lotz, City Administrator in which he outlined a past project which was subsidized through the use of Tax Increment financing. It would appear from past practice that the write down which could be secured on the acquisition of the Hotel, Vision Center and Fire Station buildings would be in excess of that which could be supported by the increment which would be generated by the, project. Certified appraisals and /or purchase options on the three buildings indicate that the acquisition cost would be in the neighborhood of $435,000. Using the 45% formula which has been used in the past, the resale price of the land would be approximately $195.000 requiring a $240,000 writedown by the City. A $240,000 writedown in addition to the capitalized interest, bond council, city attorney, financial consultants, city auditors review and other miscellaneous bond sale costs would in all likelihood require a bond sale amount of $300,000. The following calculations of the increment which would be generated by the project have been conducted in accord with information which has been provided by the County Assessor's office. 2344 NICOLLET AVE. SO. • MINNEAPOLIS. MN 55410 Page 2 May 30, 1984 John Bernhagen, Executive Director City of Hutchinson Commercial Retail 50,000 x .34 - 17,000 400,000 x .43 = 129,000 - T4-6,666 x .118639 = 17,321 Residential 15 U x 30,000 450,000 x .17 = 76,500 262,875 x .19 = 49,946 fix. Tax Less Existing base 118639 = 15,001 - 'L,3'£f 7,300 Estimated increment 25,021 As can be determined from the calculations above, the increment which would be generated by the proposed redevelopment is estimated to be in the neighborhood of about $25,000. Assuming a 9% interest rate on the bond sale and a 15 year term, a bond issue of approximately $205,000 could be supported by the increment. Substracting approximately 30% of the proceeds for bond sale costs produces approximately $150,000 which could be applied toward the acquisition of the property. The developer would be required to make up the difference through proceeds secured through the financing for the project.. In'analyzidg our development proforma it has been determined that the sale of the units and the rental of the commercial space could not support an acquisition cost equal to that which is necessary under this approach. The solution to this problem can only take two avenues, either increase the increment generated by the project or decrease the purchase price necessary for acquisition. We're proposing that the City sell Tax Increment bonds in the amount of $205,000 that they apply the bond proceeds (approximately $150,000) to the acquisition of the three buildings which would include the Hotel building at 1250,000, Fire Station at $100,000 and Vision Center at $45,000 the balance of the acquisition cost approximately $245,000 would be provided by the developers. In addition we request that the City approve the sale of Industrial Revenue Bonds to finance the acquisition and rehabilitation of the Commercial space. We estimate this amount to be approximately $300,000. The developer would be prepared to offer the guaranties, letter of credit, the fire insurance required per past City practice. 0 • rid Z w f w N Q W Z J Y Z Q K W WASHINGTON AVENUE FIRE STATION (13 Stalls) VISION WORLD 1500 sq. ft. Commercial Rental I HOTEL 1800 sq. ft. 1st floor Commercial Rental 15 Condominium Units 2nd and 3rd Floor ................. .........•........ ................. ........•......... ................. .........•........ .......•......... ........•......... .................. ................. .................. ................. .................. ......•.•.•...... .............. ............ ................. ................ . ..:.. .•0 : • ..::. t :: . ................. .......... .: :•0 :• :: 0 • 1/ ::::: 1: 1. 1: 1. 1 1 • 1• .. • 1 1 1 1 1 1 1 1 1 1/ •. 1 1 1. 1 1 1 1 1 1 1 1 1 1 1/ • : : :: :: • :1: 1 0 •. 1 1 1 1.1.1 1 1 1 1• • 1 1 1 1 1 1 1. 1 1 1 1/ •. 1 1. 1 1 1 1. 1 1• • 1 1 1 1 1 1 1 1 1 1 1 1• •: 1 :• : : : : :: is •�/ • • 1 1 1 1 1 1 1 1 1 1/ W w Ln N Z cc Q E r I i 1 .. : .................. : . . . . . . . • • . :. : • . ¢ �.� ::: ...... .....................:......... .. ...: OMC:Sroa2Y: e 4K ....... r:y'LL ....... ':':':'::':' P::: � :H� i r:::::: :.... . Hyp . R .... :........... :.:. CE�CiNG'!SM DEC KING:I -" .. :. ::W(TH:BxliJ lSTS'BELoitJ: .. ... . . ..................:.......... ....... :............. ............ :......... ........ ' .... . V. ........V .... �j:::: u- .....� .. E. ... v O' tl Q ... ..... :: _ . ... . : 4�:........: ... :.�. .. .............. .. :......I.. .:1. ,..:: :rr. .....I. .........1c.......... ... ...... :.. ._ .. , - — :::::::::..:: .:: :::: 1'1YASHIN�:T. ENYE : . . NG SIZE: " roo Scale of A gyp' t�'fzBo' _ 3526 PARCEL N0. C. R. PFi TC)N ! 11Ce M.�r. 1 O[V M4L YSIS ] /211:•[. rELO C N.VE. "WE IV:c••t ..SON � LOCPI IDNI K1C•i11- TIN.. IIIX. R(5 :1ryN 9 F +B &Mr11pN8 II/CNRBE LAND) MFIMRr IC•l RLRN[ 6 MISS! LMA iFIREI 17600 911 1 1TDRO 1000 MCn t)ECT 21000 w:LOING IFIRCI I124W BOIL TESTS 3000 wcW ICAL 0 wIL01W KN /iD" 0 4ECTR ICAL 0 LAND INOIEL' ]0000 R.C. TRIFB .000 •TR TURAL 6 wILDi. INCTELI 200000 SPECIAL ASSESS 13000 LANO>SCMC O LRNO IVitlpn 1pCp INBRECTION 0 W14tTY O WILOrNO 03IX 374000 ITILE 0 LRASE1Q.D 0 DINER O OTHER 0 TOTAL I411CwSE - - -- �I]OUO TOTAL LAMED INNER ���- -11000 TOTAL FL 4 SPICIS - 23000 IMPROVEMENTS DOCIAEENTS MRRM[T /LEN[ /RENT wILDIw :,In, 9000 _ L[OAL 4000 MM111SK 2900 w I LDINO INOTI ]80000 ACCOIMT INS 1000 WpO1MITIK 17000 w ILDINO NVIlI 13000 TITLE 1000 MOD4. D[CMATIMIN ]000 IARt INN, 20000 IMTKRMIR ]00 ROl4TT /IROIq)fOM 10000 Ot18R O R.R. /R[S[RVAi1W ]00 NM.TOII 45000 ASSOCIATION 0 RENTAL OFFICE 0 LEASE 1000 SALES OFFICE 0 OTHER DINER 0 TOTAL IMIIER 62CN0 TOTAL DOC1A4wn 8000 TOTAL 4MA /LEN /Ai 20000 r[EB FIMRMLL I [XFEMO[0 20000 IMTORO( IRt11UO 1 34000 _- RRNASEN[M! FR 1300 BrNptCJTION ETMDIaT ION o HINT :']2]000 IMILITI" x000 Nt BOND 0 TOTAL MOAT TOTAL IIREV MET( 710000 UTILITIES O LbC ll 30000 REV MNC ,500000 0 OF [RED LEON O) CREDIT 1000 OTIEI! THE O SPECIAL AL " rECIAL NS[SS 0 PERT TpM LOOT O TOTAL OEST 1070000 W TAAMIC[ x900 KIiGRK[ BwD 1000 MLo( IF♦ 0 IMYMIt2 O RIBS -Or SHERRI VT LOAN M1K 0 CLO LOMI OtSCNT 1]000 ------- NI__ OTHER O nwTM 1• RCw 17:1101 -.- 190000 1110011 o SOND IN ';;I, ]]000 Cl jTM EO IBi 40000 MEN, NRITED eCF MtiEDOw '. 30000 TOTAL [XP[NO[8 COMM, LbNI *R MEIN, 0 OTHER a CENT, INTEREST 2]000 TOTAL SUBSIDY 233000 OTHER 0 OTKRINRRN[TINOI 43000 "no S 51111115 TOTAL CAW 280000 _____ ________ - ________ OTHER INV[BTTtNT 0 -Tr. COSTI210. FT. 24. SO TOTAL "to 111000 TOTAL INVFSTKTR 1330000 SNOIT 1.130A MATE INL4211 /20, Fr. 54,00 BNOIIT Lw TFNII NMTTSA6( TEN 23 YR IKOK • -OTAL • IMCCAE • TOTAL • NEI c RAT[ IML[S! "RENTAL, MCATQ• f COIN TNT .I1" .11" - MOSS EO.PT. 2]000 •1 1 11100 )1100 Mwf TAX., K K Y :O I1l11 M 02 1 ].200 14030 NpT[L MOO 44000 3.5 YALY [RR[NS[ INCA . •l 1 ]NOD NSOO VISION :300 4300 3 OXDtN V TA! MT[ .01 M.a 111NM 31100 OTHER 0 Cr ERIN TAX MATE .4 4e 0111'48' 0 MOF°INS! SEE KNT .2 .7.8 • .v 64030 O BREE•AGE FEE SAL( .03 .OS 3.2400 0 u. •. •.N MATE •1.. :N... 5300303) J IL T.:.I MRNT '",D0 •1110 _ i I TBP Owd. 0 OnRi -INO COST 0. 12 u: :176:1. 5`900 0 OrCA.•INO MROIN •. 1.. BI`yl] 129NN 64'1n0 a D[RRE:IRTION ISIR �VI I'l O :rn}1 Sd>•1 0 VXA'. -V RAT[ .w LNO :0ST/ - IK LCS -- - . TOTAL INC nMTK WIC! / NO COBS /IOTN CM "If .11 CD AREA "at SEM,ICE COVER Ca CI ATIOIs 4KNDI tRC[ OLTESCAR -1 R -2 M YEAR-2 (M -2 M TER -3 FIMIRTCR -4 YEAR-3 pUMTCR -1 011MT[A-2 TOTAL RI ZO .23000 IMRROKTCNTS' ISMfiA •_'.300000.•__ .00000.• _ - 423000 LMb HIES 150» .000 2000 620000 KAK 6 SIXES 130X1 3000 3000 21000 iS 3000 3000 0 23000 ,FEE FC[E 130000 to DOD 10000 SOW MM /1.11AS /M 20020 500110 40000 171000 60300 TOTAL EIREK )210010 - 143000 237600 �0 - -�- �-- -- -- 0 0 0 0 0 0 g30000 ITC8N Y(AR-1 KM -x YEAR -3 YEAR-4 •ERRI YEAR -A T[MM7 rEM-21 YEAR -1 r[AR -10 SALES 48]00 30133 33471 56143 't.2 51900 64190 60214 )1630 75299 1 ) I SAL[[ 142500 0 0 0 4 0 O 0 0 0 0 OTHER Man'1ACOK 191000 11 30923 W471 36143 32032 61100 64193 48244 71637 75231 VKAKY ] .03 .05 .0] .w 'N,3 .w .o, 05 .M .w LEN VA 2425 rite 2674 280) 2940 30" 3230 3412 33[3 3762 l INC I 988513 Han 30718 53338 36004 38805 4:745 645]2 65074 714)) Lou COST L[ CART SALES 0 0 0 0 0 0 0 0 0 0 USE [MENSES KNIO 44" 4841 4330 7063 5413 •00/ 9N,3 10309 11031 KT OPERATE INC 40015 .1 ,31 43 "6 41.7 48140 90389 32741 'A317 37765 60447 MET ITmN 142306 0 0 0 0 0 0 0 0 0 VALINBCM "It 364311 381443 SM34S 4130" 437633 458033 479451 3009! 130133 54"015 LOOS IOIT I L 1 y000 36000 1e000 34 • 20000 "000 38000 3000 36060 36000 u's LOAN INT LFSS LON "INC 710000 IT![-rAS CAW Tot - - - -- -11481! --- - -SPJi •- �ivii - -�MBi - - - - -- -11110 MEITTI3ATIw PRINCIPAL 2303 2783 :0V8 .443 3634 4266 474A 3271 5573 INTEREST :3730 33.11 13213 ':902 ::533 37166 -:135 31=4 3072: W127 REMAINING SAL :17750 '95247 212462 Y. 320 IMM917 204083 27-1:1 2)30)1 267717 241111 f(1N1 -NINE D.SI5 1030.!0 1010000 ".NX48 17100* Y.NX10 130000 91':'ld) 890000 870000 tl0000 TAIARl IKE4 .. .. -• ._.. KT CRCMAIC INC 4W 11 41151 "128 43.01 40140 16381 3]711 SSI97 37730 40447 "" iMT[nsT ::750 33411 3320 ::c12 :2533 321" )1733 31234 30721 3012) LEN B[rnC. -nr.p 20000 30000 :;.AM :•X100 200( :0003 20000 20000 INN", T..AMU INCE .. -1-175 -1103[ -9707 -4815 441] -077 IOOe Tq 1044 10320 INC TMTISAVINGI -5470 -4485 -3)13 -2766 .3743 -711 402 1577 2817 41" KUS M.Ec. 200to 9000] 20:90 2 1000 20000 20000 :: -MO x0000 200M 20(00 LGSM MINCIT.L 2290 2303 2713 -01, 4847 3054 1261 4746 St" 38)3 NUWBLE CRW 1545 10574 11•.3 .:133 1390! 13120 1.331 176" 1(948 20315 K1w I1, I, C.� gtVOO r) 1AI PAaF1T 1_.._ _______ __ _____ __ _________ __ _________ _ 11443 12133 11103 __.__..___ �....... ��1�317 ii 15100 0620 18 NSAU "ICE 344315 381443 311348 415046 437433 430083 479459 W17" 3"l 1 •64101$ USE 2AOx. In 10,30 11443 . 11180 123.2 13129 13743 1.344 15034 O)M 1"85 KT NBRLC 33:311 370000 6173621 403]24 42.504 4443.3 445076 4967.1 M1379 1330]0 LESS INIIAI Iw 13505100 1330000 1]30030 1350000 1:30000 1350000 15"2000 1130000 1330048 1330000 GAIN - 11.111 - 100000 - 16263: - 1.4.76 - 925.16 - 105451 - 921X124 - 81]239 - 04021 •I MO KIN, CO4 AAPREC 20000 40000 60000 80000 100000 120000 160000 140000 100000 200000 TOT T.SBL[ "IN -67"11 -140000 - TO2632 - 014476 -025..4 _185657 -744"4 -703MV - 640621 - 616970 CM MIN Tu -18322 - IB0000 -100524 - 112593 - 163011 - 137131 .1.SVO0 - 140A32 -02124 - 123514..•• RICAPTOIE ITIC, ISOMO 120000 10000 60000 31000 LESS LOAN FAINC :11130 213:0 x.2"2 281144 2MV17 202003 ]77.'817 273011 2677" 261919 NET L PROCEEDS IM161 .482753 105432 2:9031 273,61 311311 334243 354372 373111 31.305 LEES MAIN CM 2R•)OO x80000 1100000 280000 200000 280000 280000 2210000 260000 230000 rT TAX PROFIT 15345 IM74 11443 :2133 1310] ISI00 1.337 11620 1@941 20319 NET Phan -1111. .12"13 -82m -31111 7m 34411 1 81 91942 117658 04024 INT(11WY MATE Or RER•N ______ - ___ _____ _ ____ CAW OM CAW 0.1621753 -.432404 -."616 -.:: •]1) .0271125926 .11.411 .=q-169.3223646 .4023517201 .4.15134 ON INVESIM.N - ..': ... M6) -.09. -.832 - .061426 .:2021 .W,62335" .04A36SS .053743] .0681013 .0034507211 .09244814 ust �]Parkview Aplaza WIT # PRE CONSTRUCYIl 1 $79,900 2 $54,900 3 $56,900 4 $59,900 5 $59,900 6 $57,900 7 $64,900 8 $64,900 9 $54,900 10 '$56,900 11 $59,900 12 $59,900 13 $57,900 14 $64,900 15 $64,900 6 PRICE $82,900 .SO&D $57,900 $59,900 $62,900 $62,900 44900 $67,900 $67,900 $57,900 $59,900 $62,900 $62,900 &0900 $67,900 $67,900 PUBLISHED IN THE HUTCHINISDN LEADER, HUTCHINSON, t•NESOTA, ON TUESDAY, • AUGUST 14TH, 1984 AND ON TUESDAY, AUGUST 21ST, 1984. NOTICE OF HEARING ON PROPOSED ASSESSMENT PUBLICATION N0. 3298 ASSESSMENT ROLL NO. 187 Project No. 83 -06, Change Order 01 Hutchinson, Minnesota August 14th, 1984 TO WHOM IT MAY CONCERN: NOTICE is hereby given, that the Council will meet at 8:00 P.M. on the 28th day of August, 1984, in the Council Chambers of City Hall at Hutchinson, Minnesota, to pass upon the proposed assessment for the improvement of Mac's Bluff Addition by construction of Sanitary Sewer, Watermain, Storm Sewer and Appurtenances. The proposed assessment is on file for public inspection at my office. Written or oral objections will be considered at the meeting, but the Council may consider any objection to the amount of the proposed individual assessment at an adjourned meeting upon further notice to the affected property owners as it deems advisable. An owner may appeal an assessment to District Court pursuant to Minnesota Statutes Section 429.081 by serving notice of the appeal upon the Mayor or Clerk -,f the City within 30 days after the adoption of the assessment and filing such notice with the District Court within ten days after service upon the Mayor or Clerk; however, no appeal may be taken as to the amount of any in .- •,•il assessment unless a written objection, signed by the affected property owner, is filed with the City Clerk prior to the assessment hearing ur !,,rented to the presiding officer at the hearing. i:nder Minnesota Statutes, Section 435.193 to 435.195, the Council may, in its ;!i° ^_retion, defer the payment of this special assessment for any homestead property owned by a person 65 years of age or older for whom it would be a hardship to make the payments. When deferment of the special assessment has been granted and is terminated for any reason provided in that law, all amounts accumulated, plus applicable interest, become due. Any assessed property owner meeting the requirements of this law and the resolution adopted under it, may, within 30 days of the confirmation of the assessment, apply to the City Clerk for the prescribed form for such deferral of payment of this special assessment on his property. The total cost of the improvement is $42,658.44. Gary D. Plotz, City Administrator Hutchinson, Minnesota • • PUBLISHED IN THE HUTCHINSON LEADER, HUTCHINSON, MINNESOTA, ON TUESDAY, AUGUST 14TH, 1984 AND ON TUESDAY, AUGUST 21ST, 1984. NOTICE OF HEARING ON PROPOSED ASSESSMENT PUBLICATION N0. 3299 ASSESSMENT ROLL NO. 188 Project No. 83 -09, Change Order #1 Hutchinson, Minnesota August 14th, 1984 TO WHOM IT MAY CONCERN: NOTICE is hereby given, that the Council will meet at 8:00 P.M. on the 28th day_ of August, 1984, in the Council Chambers of City Hall at Hutchinson, Minnesota, to pass upon the proposed assessment for the improvement of Mac's Bluff Ad,!ition by construction of Grading, Gravel Base and Appurtenances. The proposed assessment is on file for public inspection at my office. Written or oral objections will be considered at the meeting, but the Council may consider any objection to the amount of the proposed individual assessment at an adjourned meeting upon further notice to the affected property owners as it deems advisable. An owner may appeal an assessment to District Court pursuant to Minnesota Statutes Section 429.081 by serving notice of the appeal upon the Mayor or Clerk of the City within 30 days after the adoption of the assessment and filing such notice with the District Court within ten days after service upon the Mayor or Clerk; however, no appeal may be taken as to the amount of any individual assessment unless a written objection, signed by the affected property owner, is filed with the City Clerk prior to the assessment hearing or presented to the presiding officer at the hearing. Under Minnesota Statutes, Section 435.193 to 435.195, the Council may, in its discretion, defer the payment of this special assessment for any homestead property owned by a person 65 years of age or older for whom it would be a hardship to make the payments. When deferment of the special assessment has been granted and is terminated for any reason provided in that law, all amounts accumulated, plus applicable interest, become due. Any assessed property owner meeting the requirements of this law and the resolution adopted un(,ur it, may, within 30 days of the confirmation of the assessment, apply to th-e City Clerk for the prescribed form for such deferral of payment of this s;:,cial assessment on his property. The total cost of the improvement is $12,046.92. Gary D.`Plotz, ity Administrator Hutchinson, Minnesota i i U: ?OM: SUBJECT (612) 587 -5151 CITY OF h YCHINSON 37 WASHINGTON AVENUE WEST HUTCHINSON, MINN. 55350 August 21, 1984 M E M 0 R A N D MAYOR AND COUNCIL GARY PLOTZ, CITY ADMINISTRATOR APPRAISAL REPORT ON VISION CENTER AND WENDORFF PROPERTY Subject to receiving the full appraisal report, pictures, and comparables, the appraised value of the Vision Center is $46,300. Che Wendorff Property was appraised on the cost less depreciation method. Also, the property was appraised under the comparable ;ales method. The appraised value is $13-5-,000. X34. rri The land was appraised at 04.75 per square foot (totaling $76,500). fhe house and garage was depreciated 50% in value for a total of $57,500. copy: Dick Peterson Frank Fay James Wendorff Robert Wendorff � —w- 6 0 RESOLUTION NO . 7840 RESOLUTION AUTHORIZING VISITOR PARKING PERMITS BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON. 14INNESOTA: 1) The City of Hutchinson hereby authorizes the issuance of Daily Parking Permits. 2) Said Daily Parking Permits shall be distributed by the Hutchinson Area Chamber of Commerce. 3) Said Daily Parking Permits shall allow a motor vehicle to utilize off - street municipal parking lots for a period of time in excess of the posted three -hour parking limit. 4) Said Daily Parking Permits shall be valid only for the date stamped. 5) Said Daily Parking Permits shall he prominently displayed on the dashboard or from the rearview mirror of the vehicle utilizing said Daily Parking Permits. 6) Said Daily Parking Permits may be utilized only by customers of downtown businesses and government agencies. 7) To the extent practical, said Daily Parking Permits shall be made of bright colored, heavy paper with a map of the downtown area showing municipal parking lots printed on the back of said Daily Parking Permits. ADOPTED BY THE CITY COUNCIL THIS DAY OF 1984. Robert H. Stearns, Mayor ATTEST: Gary D. Plotz, City Clerk �_CL r- 0 (612) 587 -5151 r CITY OF HUTCHINSON 37 WASHINGTON AVENUE WEST HUTCHINSON, MINN. 55350 August 21, 1984 M E M O R A N D U M TO: MAYOR AND CITY COUNCIL !;ROM: DIRECTOR OF RE: STORM SEWER PROBLEM — ROBERTS ROAD AND LAKE STREET I have viewed the area of the storm sewer problem Mr. Goebel referred to in his letter of August 6, 1984. I estimate the cost of construction of additional capacity in the area referenced above would amount to $36,200. The area that service would be improved for, is estimated at 1,040,000 square feet and the cost would be $0.0348 per .square foot. i t �(612) 587 -5151 �HVllf/, �i I cf i ft '.'f�� S s r F► f % 37 WASHINGTON AVENUE WEST HUTCHINSON, MINN. 55350 August 21, 1984 Mr. Virgil Goebel Mr. Richard Goebel Goebel Fixture Company 528 Dale Street Hutchinson, MN 55350 Re: Ston? Sewer near Richard and Virgil: The City Council received your correspondence of August 6, and considered it at the regular Council meeting of August 14. The Council has directed the City Engineer, Marlow Priebe, to study alternative solutions and costs for addressing the storm sewer problem in your area, including along Lake Street and down Roberts Road. The Council has scheduled this item and report from the Engineer to be on the August 28th City Council Agenda. You are welcome to attend. The meeting starts at 7:30 p.m. in the Council Chambers. Sincerely, CITY OF HUTCHINSON Gary Plutz City Administrator copy: Mayor and Council Marlow Priebe (612) 587 -5151 C1 —1y OF I-SlUTC P41hrSON 37 WASHINGTON AVENUE WEST HUTCHINSON, MINN. 55350 August 21, 1984 M E M O R A N D U M TO: MAYOR AND CITY COUNCIL FROM: DIRECTOR OF ENGINEERING RE: MEETING IN OWATONNA The Owatonna City staff had contacted the following firms relative to Ludy of Dr. Harrison's process: Zenk Engineering of Albert Lea TKDA of St. Paul Consulting Engineers Diversified of Bloomington Kirkham Michael and Associates, Rochester Office Short Elliott Hendrickson, Inc. of St. Paul ^.:e to the nature of the study only Kirkham Michael and Associates and Short Elliott Hendrickson, Inc. were represented for the interview on Thursday, August 16th. Neither firm felt that a study of the process would be positive. One indicated that a minimum of a two (2) year study of a pilot plant in the state of Minnesota would be necessary to make a meaningful evaluation of both construction, operating and maintenance costs. Due to the fact that Owatonna has plans approved and is waiting for funding approval for construction, the Sewer Board will be recommending that the City take no action on a study and proceed with the plans submitted. At the present time we have not been approved for funding for design. Should you proceed with a study, it would not affect our standings on the MCPA list until such time as we would elect to make changes in the facilities Plan. At that time we may encounter a 1 or 2 year delay depending upon changes that would be recommended. It is my recommendation that a decision be made as to making a study or not and who is to make same, as soon as possible, since it will take time to do the study as well as possibly start same. Ir I i..4`i- z ,� .,` � 37 ;' AS' VNGTONI AVENUE WEST VIM, 55350 M E M O R A N D U M DATE: Qugust_28,1984__ TO: Mayor — City Council PROM: Water Billing Department - SUBJECT: _Delinquent Water & Sewer Accounts Listed below are the delinquent water accounts for the month of August. Recommend water service be discontinued on Tuesday, September 4, 1984 at Noon. 3- 030 - 0646 -081 Eugene Rauch 646 2nd Ave. S.W. Hutchinson, MN 55350 $56.82 Owner: Vicky Weishert, R.1, Glencoe, MN 55336 3- 130 - 0136 -041 Miles Willhite 136 11th Ave. NE Hutchinson, MN 55350 $106.76 Promises to pay in full 8/31/84 3- 210- 0640 -061 Interiors Unlimited 640 Adams St. Hutchinson, MN 55350 $46.83 3- 075- 0229 -091 Sheldon Crouse 229 5th Ave. NE Hutchinson, MN 55350 $62.94' Promises to pay 8/31/84 3 -210- 0416 -081 ba_lvin Lee 416 m t. Hutch" .so MN 55350 $5 . 1 3- 250- 0607 -081 Ronnie Telecky 607 Bluff St Hutchinson, MN 55350 $95.09 C -a . 3- 330 - 0304 -081 Leland Schwab 304 College Ave. Hutchinson, MN 55350 $53.04 3- 415- 0455 -032 FBS Mortgage Co. *455 Glen St N Suite 900 730 2nd Ave. S Minneapolis, MN $35.46 cc: Peterson 55402 & Paulsen 3 -815- 0436 -031 Jerry Selle 436 Prospect St N Hutchinson, MN 55350 $49.51 3- 350- 0318 -092 Ron Ronning *318 Dale St. Box 222 Silver Lake, MN 55381 $10.73 0 3- 380 -0405 -051 David Freund 405 Erie St. S. Hutchinson, MN 55350 $135.39 3 -535- 0215 -091 Don Kramer 215 Huron St. Hutchinson, MN $43.10 3- 380 - 0433 -011 David Heins 433 Erie St. Hutchinson, TIN 55350 $71.80 3- 775- 1204 -091 Al Klammer 1204 Oakwood Ln 55350 Hutchinson, MN 55350 $38.79 3 -970- 0450 -051 Midwest Trailer Court Box 157 Winsted, SIN 55395 *450 Water St. $923.00 Promises to pay 9/17/84 cc: Ben Stolpman, 969 Hayden E. R. Wessen, 318 Dale St. 3- 045- 0650 -001 James Weis 605 3rd Ave SE Hutchinson, MN 55350 $70.46 cc: Stan Koci 580 Milwaukee Ave. �L75'iI 3/' S� vG70:1'AVtNUc WtS , %4JV N. 55350 M E M 0 DATE: August 9th, 1984 TO: Mayor and City Council FROM; -,jirector of - Engineering RE: 085 Construction Projects Accord"ng to our 1984 construction costs and the anticipated increases in unit prices for 1985, I project the following: Street Surfacing Improvement - $26.00 per front foot Street Resurfacing Improvement - $ 5.00 per front foot These costs will be reflected in the hearing notices to the individual owners. Marlow V. Priebe Director of Engineering MVP /pV RESOLUTION R-.- TVING REPORT AND CALLING HEAPI• ON I;PRDVE,ENT :ROJECT NO. 85 -01 -1 thru 85 -01 -25 RESOLUTION NO. '1935 WHEREAS, pursuant to resolution of the council adopted July 24th, 1984, a report has been prepared by Marlow V. Priebe, with reference to the improvement of: PROJECT NO. TYPE AND LOCATION C85 -01 -1 8" Watermain & Appurtenances on Hassan St. from 1st Ave. N.E. to 1st Ave. S.E. 85 -01 -2 8" Watermain & Appurtenances on Hassan St. from 2nd Ave. S.E. to 4th Ave. S.E. 85 -01 -3 12" Watermain & Appurtenances on T.A. 22 from Oakland Ave. to 1600, South 85 -01 -4 12" Loop Watermain & Appurtenances from 12" at Hutch Technology to Bluff St. 85 -01 -5 12" Trunk Watermain & Appurtenances from Glen St. No. to Kouwe St. on 5th Ave. N.W. 85 -01 -6 18" Trunk Watermain & Appurtenances from Main St. No. to Glen St. No. on 5th Ave. N.W. 85 -01 -7 Grading, Base and Surfacing & Appurtenances of 6th Ave. S.E. from Main St. to Jefferson St. 85 -01 -8 Grading, Base and Surfacing & Appurtenances of Hassan St. from 6th Ave. S.E. to Oakland Ave. 85 -01 -9 Grading, Base and Surfacing & Appurtenances of 7th Ave. S.E. from Main St. to Hassan St. 85 -01 -10 Grading, Base and Surfacing & Appurtenances of Ivy Lane from 7th Ave. S.E. to Oakland Ave. 85 -01 -11 Grading, Base and Surfacing & Appurtenances of Franklin St. from 4th Ave. S.W. to 5th Ave S.W. 85 -01 -12 Grading, Base and Surfacing & Appurtenances of Glen St. from 3rd Ave. S.W. to 5th Ave. S.W. 85 -01 -13 Grading, Base and Surfacing & Appurtenances of 3rd Ave. S.W. from Franklin St. to Glen St. 85 -01 -14 Grading, Base and Surfacing & Appurtenances of Kouwe St. from 4th Ave. N.W. to 5th Ave. N.W. 85 -01 -15 Grading, Base and Surfacing & Appurtenances of Harrington St. from Juul Road to 4th Ave. N.W. 85 -01 -16 Grading, Base and Surfacing & Appurtenances of 7th Ave. N.W. from School Road to Shady Ridge Road R =_solution No. _ • Page 2 85 -01 -17 Grading, Base and Surfacing & Appurtenances of Rolling Oaks Lane from School Road to Best Termini 85 -01 -18 Surfacing & Appurtenances of Oakwood Lane from Co. Rd. 12 to South Termini 85 -01 -19 Grading, Base and Surfacing & Appurtenances of School Road from T.H. No. 7 to 7th Ave. N.N. 85 -01 -20 Grading, Base and Surfacing & Appurtenances of 5th Ave. S.E. from Main St. to Adams St. 85 -01 -21 Grading, Base and Storm Sewer & Appurtenances on Hilltop Drive from Michigan St. to Paul's Road 85 -01 -22 Grading, Base, Surfacing and Curb and Gutter & Appurtenances on North High Drive from T.H. 15 to Maple St. 85 -01 -23 Grading, Base, Surfacing and Storm Sewer & Appurtenances on 5th Ave. N.W. from Main St. to Rouwe St. 85 -01 -24 Street Overlay with Slurry Seal on Granite Mix Seal & Appurtenances on Peterson Circle, Ash Street, Spruce Street, Northwoods Avenue, Maple Street, Oak Street, 10th Avenue N.E., Alan Street, Circle Drive, Harrington Street, Milwaukee Avenue, Water Street, 9th Avenue N.E., Lea Avenue, Lewis Avenue,.Bradford Street. 85 -01 -25 Sidewalk Repair and Replacement this report was received by the council on August 28th, 1984. NOW THEREFORE, BE IT RESOLVED BY THE'CITY COUNCIL OF HUTCHINSON, Ml— oESOTA: 1. The council will consider the improvement of such street in accordance with the report and the assessment of benefited property for all or a portion of the cost of the improvement pursuant to Minnesota Statutes Chapter 429 at an estimated total cost of the improvement of $1,720,750. 2. A public hearing shall be held on such proposed improvement on the 25th day of September, 1984, in the Council Chambers of the City Hall at 8:00 P.M. and the clerk shall give mailed and published notice of such hearing and improvement as required by law. Clerk Adopted by the council this 28th day of August, 1984. ENGINEER'S REPORT / l CITY OF HUTCHINSON DATE: AUGUST 9TH, 1984 TO: MAYOR AND CITY COUNCIL FROM: DIRECTOR OF ENGINEERING SUBJECT: 1985 IMPROVEMENT PROJECTS Gentlemen: have studied the following areas and find that the proposed projects are feasible and recommend they be constructed. If acceptable, I recommend a earing be held on the 25th day of September, 1984. PROJECT PROJECT Q K CONSTRUCTION ADMINISTRATION ENGINEERING CAPITALIZED TOTAL ASSESSABLE CITY COUNTY NO. TYPE & LOCATION COST COST COST INTEREST COST COST COST COST 85 -01 -1 8" Watermain & Appurtenances on Hassan $ 22,400 $ ,1,900 $ 1,900 $ 1,800 $ 28,000 $ -0- $ 28,000 $ -0- St. from 1st Ave. N.E. to let Ave. S.E. 85 -01 -2K� 8" Watermain & Appurtenances on Hassan St. 200000 1,700 1,700 1,600 25,000 -0- 25,000 -0- from 2nd Ave. S.E. to 4th Ave. S.E. 85 -01 -3 12" Watermain & Appurtenances on T.H. 22 48,000 4,080 41080 3,840 60,000 -0- 60,000 -0- �, from Oakland Ave. to 1600' South /� 85 -01 -4r 12" Loop Watermain & Appurtenances from 280000 2,380 2,380 2,240 35,000 -0- 35,000 -0- 0 12" at Hutch Technology to Bluff St. 85 -01 -5 ' 12" Trunk Watermain & Appurtenances from 31,000 2,640 2,630 21480 38,750 -0- 38,750 -0- o vTOlen St. No. to Kouwe St. on 5th Ave. NW 85-01-6'. 181, Trunk Watermain & Appurtenances from 30,400 2,580 2,590 2,430 38,000 -0- 38,000 -0- ,,q;�'Main St. N. to Glen St. N. on 5th Ave. NW 85 -01 -7 Grading, Base and Surfacing & 39,400 3,270 3,270 3,060 49,000 13,200 35,800 -0- oK Appurtenances of 6th Ave. SE from Main St. to Jefferson St. 85 -01 -8 Grading, Base and Surfacing & 45,40G 3,780 3,770 3,550 56,500 35,500 21,000 -0- owr Appurtenances of Hassan St. from 6th Ave. S.E. to Oakland Ave. 1 CITY OF HUTCHINSON - ENGINEER'S REPORT /985 IMPROVEMENT PROJECTS /AUGUST 9TH, 1984 PAGE 2 J PROJECT 0 PROJECT NO. TYPE & LOCATION 85 -01 -9 Grading, Base and Surfacing & Appurtenances of 7th Ave. S.E. from Main St. to Hassan St. 85 -01 -10 Grading, Base and Surfacing & ,"Nppurtenances of Ivy Lane from 7th Ave. S.E. to Oakland Ave. 40-01 -11 Grading, Base and Surfacing & p1< Appurtenances of Franklin St. from 4th Ave. S.W. to 5th Ave. S.W. 85 -01 -12 Grading, Base and Surfacing & Appurtenances of Glen St. from 3rd Ave. S.W. to 5th Ave. S.W. 85 -01 -13 Grading, Base and Surfacing & 6 K Appurtenances of 3rd Ave. S.W. from Franklin St. to Glen St. 85 -01 -14 Grading, Base and Surfacing & 6K Appurtenances of Kouwe St. from 4th Ave. N.W. to 5th Ave. N.W. 10 -01 -15 Grading, Base and Surfacing & Appurtenances of Harrington St. from Juul O�\ Road to 11th Ave. N.W. 85 -01 -16 Grading, Base and Surfacing & Appurtenances of 7th Ave. N.W. from C3� School Road to Shady Ridge Road 85 -01 -17 Grading, Base and Surfacing & ,� Appurtenances of Rolling Oaks Lane from School Road to West Termini 85 -01 -18 Surfacing & Appurtenances of Oakwood Lane �,\`from Co. Rd. 12 to South Termini CONSTRUCTION ADMINISTRATION ENGINEERING CAPITALIZED TOTAL ASSESSABLE CITY COUNTY COST` COST COST_ INTEREST_ COST COST COST COST $ 25,000 $ 2,050 $ 2,050 $ 1,900 $ 31,000 $ 5,000 $ 26,000 $ -0- 27,400 2,250 21250 2,100 34,000 16,500 17,500 -0- 20,200 1,630 1,630 11540 25,000 13,200 11,800 -0- 39,400 3,270 3,270 31060 49,000 18,150 30,850 -0- 20,200 1,630 1,630 1,540 25,000 4,300 20,700 -0- 45,000 3,750 3,750 3,500 56,000 33,000 23000 -0- 29,800 2,450 2,450 2,300 37,000 4,300 32,700 -0- 47,400 4,000 49000 3,600 59,000 58,000 11000 -0- 35,000 2,900 2,900 2,700 43,500 42,500 1,000 -0- 21,000 1,900 1,700 11600 26,000 259000 11000 -0- CITY OF HUTCHINSON - ENGINEER'S REPORT 1985 IMPROVEMENT PROJECTS ,AUGUST 9TH, 1984 PAGE 3 PROJECT PROJECT CONSTRUCTION ADMINISTRATION ENGINEERING CAPITALIZED TOTAL ASSESSABLE CITY COUNTY NO. TYPE & LOCATION COST COST COST INTEREST COST COST COST COST 85 -01 -19 Grading, Base and Surfacing & $ 136,000 $ 11,600 • $ 11,600 $ 10,800 $ 170,000 $ 98,800 $ 71,200 $ -0- d Appurtenances of School Road from T.H. No. 7 to 7th Ave. N.W. 85 -01 -20 Grading, Base and Surfacing & 80,000 6,800 6,800 6,400 100,000 13,200 86,800 -0 -. Appurtenances of 5th Ave. S.E. from Main p� St. to Adams St. -01 -21 Grading, Base and Storm Sewer & 36,000 3,100 31100 2,800 45,000 45,000 -0- -0- Appurtenances on Hilltop Drive from oxsX ` Michigan St. to Paul's Road � Lji_ Y`�� 85 -01 -22 Grading, Base, Surfacing and Curb and 120,000 10,200 10,200 9,600 150,000 52,500 28,500 69,000 ,^ Gutter & Appurtenances on North High from T.H. 15 Maple St. d � Drive to E15 -01 -23 Grading, Base, Surfacing and Storm Sewer 256,000 21,800 21,800 20,400 320,000 155,000 89,000 76,000 ce�C & Appurtenances on 5th Ave. N.W. from Main St. to Kouwe St. - Rd;t- At VL 85 -01 -24 Street Overlay with Seal on 1161000 91900 91900 9,200 145,000 120,000 25,000 -0- Granite Mix Seal & Appurtenances on Paterson Circle, Ash St., Spruce St., Northwoods Ave., Maple St., Oak St., 10th Ave. N.E., Alan St., Circle Drive, Harrington St., Milwaukee Ave., Water St., 9th Ave.N.E., Lea Ave., Lewis Ave., Bradford St. 85 -01 -25 Sidewalk Repair and Aeplaoenant 60,000 5,100 51100 41800 75,000 15,000 60,000 -0- ASSESSABLE COST DEFERRED ASSESSABLE COST 'I: ".Y COST REr;7R AND WATER FUND COST ,IU' ::CIPAL STATE AID FUND COST COUNTY COST TOTAL COST ---------------------------- $ 11720,750 �I (612)587-5151 HUrCH, � CI ► Y OF h,, UTC1- -,F1Af S0 [1f 37 WASHING TON AVENUE WEST HUTOHINSON, MiNN. 55350 August 21, 1984 TO: MAYOR AND CITY COUNCIL FROM: DIRECTOR OF ENGINEERING RE: WALLER`S SECOND ADDITION Attached is the Subdivision Agreement for the above - referenced project for review and approval. 0 /__6_1 SUBDIVISION AGREEMENT WALLER'S SECOND SUBDIVISION CITY OF HUTCHINSON, VTNNESOTA THIS made and entered into the day and year set forth hereinafter, by and between Rockite Silo, Inc.; Robert W. Peterson, President, 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 Part of Lot A, Block 2, Waller's Subdivision, to be known as Waller's Second Subdivision, and; WHEREAS, City Ordinance No. 464 and 466 requires subdividers to make certain improvements in the subdivision; NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS: 1. The Subdivider hereby petitions the City to extend the sanitary sewer on Waller Drive to serve Lots 1, 2 and 3. Said improvement to be completed during the 1985 construction season and to assess the Subdivider's share of the cost on a per front foot basis. 2. The Subdivider hereby petitions the City to install water and sanitary sewer leads to all lots without service leads during the 1985 construction season. The cost of the service leads shall be 100% assessed on a per lot basis. 3. The Subdivider hereby petitions the City to grade and place sub -grade gravel base on the entire length of Waller Drive, as presently platted in Waller's Subdivision, during the 1985 construction season. The cost assessable to the Subdivision shall be made on a per lot basis. 4. The Subdivider hereby petitions the City to improve the storm sewer system on Waller Drive as needed to conform to the road*ay design during the 1985 construction season. The cost assessable to the Subdivision shall be made on a per lot basis. 5. The Subdivider hereby petitions the City to construct curb and gutter and gravel base on the entire length of Waller Drive, as presently platted in Waller's Subdivision, during the 1986 construction season. The Cost assessable to the Subdivision shall be made on a per lot basis. 6. The Subdivider hereby petitions the City to surface the entire length of Waller Drive, as presently platted in Waller's Subdivision, during the 1988 construction season. The cost assessable to the Subdivision shall be made on a per lot basis. • SUBDIVISION f.JFFS LI;T kALL R'S SHOO' ;D SJiDIVISION CITY OF BU7 rIt;SOt; PAGE 2 7. It is understood and agreed that all improvements are petitioned for, in Paragraphs 1, 2, 3, 4, 5 and 6 aforementioned, by the Subdivider and that the Subdivider hereby waives all rights for a public hearing and appeal for the cost of same. The waiving of all such rights shall be binding upon and extend to the heirs, representatives, assigns and successors of the Subdivider. 8. It is understood and agreed that the following improvements have been completed by the City, and the amount shown has been assessed or the assessment has been deferred: Lot No. Watermain Sanitary Se=er 1 $1,242.09 $ 0.00 2 $12242.09 $ 0.00 3 $1,242.09 $ 0.00 4 $1,242.09 $ 1,242.09 5 $1,242.09 $ 1,242.09 It is, also, understood and agreed that the above - mentioned deferred assessments will be activated in 1984 by the City and the first installment will be certified to the County for payment in 1985 and that the Subdivider hereby waives all rights to a public hearing and appeal for the cost of same. The waiving of all such rights shall be binding upon and extend to the heirs, representatives, successors of the Subdivider. 9. It is understood and agreed that'to fulfill City Policy, two trees will be provided in the margin (boulevard) of each lot. The Subdivider or property owner shall purchase from the city Payment for half the cost of said trees and the City's portion the trees shall not exceed $10.00 per tree. Said trees shall be planted by the property owner. The Subdivider hereby petitions the City to install two trees per lot and assess the properties in the subdivision, the cost less allowed City's portion of said cost. Said installation to be included in the last assessable improvement to be installed for the subdivision. All trees installed at the time of said last assessable improvement will be credited to the properties where the trees are located. Species selection will be determined by the Tree Board. Should the thedselectedr specie rlist, he/she hmust ppresent this/her crequest t m to the Tree Board. SUBDIVISION AGYE ;ENT WALLER'S SECOND SUBDIVISION CITY OF HUTCHINSON PAGE 3 The City trill, at no charge to the property u4ner, replace any tree Which dies within one year of the time of planting. 10. This agreement shall be binding upon and extend to the heirs, repre� :_t.atives, assigns and successors of the parties. IN WITNESS THERE • the Subd'vider has hereunto set his hand and seal this day of tt' cam/ , 1984. U SUBDIVIDER Robert W. Peterson, President Rockite Silo, Inc. Approved by the City Council on the day of , 1984. CITY OF HUTCHINSON Its Mayor Its City Clerk i • (612) 587 -5151 CITY OF HUTCHINSON 37 WASHINGTON AVENUE WEST HUTCHINSON, MINN. 55350 August 21, 1984 M E M 0 R A N D U 21 TO: MAYOR AND CITY COUNCIL :ROM: DIRECTOR OF ENGINEERING RE: DEFERRED ASSESSMENT Attached is the signed letter by Mr. Bernard C. Brecht relative to activating the deferred assessment on the property he purchased this year. I recommend approval of same at an interest rate of 7.0% as was set on Roll No. 42 when the project was assessed. As in the past this deferment would be made over a 10 year period. cc: Ken Merrill 587 -5151 - - - - - -- • - - - -- y�c�` CITY OF �rUTC` 1AISON F 37 WASHINGTON AVENUE WEST 6 HUTCHINSON, MININ. 55350 July 3rd, 1984 Mr. Bernard C. Brecht 326 Erie St. Hutchinson, MN 55350 RE: Deferred Assessment Dear Mr. Brecht: According to the "City Clerk's Certificate of Special Assessments" for Lot 29, 23 and 21 EA M20', Shady Ridge, dated April 19, 1984, the deferred assessment for water and sewer in the amount of $2,909.50 is due. Kindly complete and return, as soon as possible, to enable us to issue your Buil-14ng Permit. Respectfully, CITY OF HUTCHINSON Marlow V. Priebe Director of Engineering M v i ?. "pv cc: Kenneth Merrill $ Homer Pittman Indicate which plan you prefer and date and sign same: I desire to pay the $2,909.50 deferred water and sewer assessment on or before October 1, 1984. I desire to have the $2,909.50 deferred water and sewer assessment activated for first payment in 1985 and waive all rights to a public hearing and appeal for the cost of same. Date: t' y7 Signed: -Bernard C. Brecht TO: FROM SUBJECT': (612) 879 -237? OF HUTCHINSON 37 WASHINGTON AVENUE WEST HUTCHINSON, MINN. 55350 M E M O R A N D U M DATE: AUGUST 22, 1984 Mayor and City Council _ _ _ _ Ralph Neumann . . . . . . . . . . Replacement truck bids _ _ _ _ _ _ _ _ _ _ Bids were opened and received Tuesday August 219 1984 for two replacement pick -up trucks. After reviewing the bids and specs the Motor Pool recommendation is to award contract to the low bidder Wigen Chevrolet Co. 1/2 Ton Pick -up (Park Dept.) $8383.60 Two wheel drive 3/4 Ton Pick -up (Street Dept.) $13628.02 Four wheel drivewith plow attachments _ k' �r L� (12) 587 -5151 -- C -V OF HUTCi%wr1[JS0A1 37 WASHING TON AVENUE (NEST HUTCHINSON, MINN. 55350 M E M O R A N D U M DATE: August 23 1984 TO: Mayor and City Council -- — — — — — — — — — — — — — — — — FROM: John Bernha gen, Executive Director HCDC — — — — — — — — — — SUBJECT: City of Hutchinson's Industrial Revenue Bond (IRB) entitlement Hutchinson, in recent years, has made use of IRB's in amounts varying from $185,000 to $6,000,000 per year. Because of recently passed federal legislation and subsequent state legislation , cities that have used an average amount of $1,000,000 or more are considered entitlement cities. Hutchinson is an entitlement city. Because future allocation may be based on averaging, and use by the City will vary dramatically, and Chapter 582 of the Minnesota Statutes, sec. 474.18, subd. 4 provide that a city may enter into a joint powers agreement with other municipalities and the transferee of the allocation would have the bond amounts considered as being issued by the issuer granting the use of a portion of their allotment (see exhibit A). HCDC therefore recommends passage of a resolution authorizing a transfer with the accompanying 1% deposit fee to the Department of Energy and Economic Development. Exhibit B shows allotments to Hutchinson based on certain assumptions. The 1% deposit would be returned to the City by the developer, be they from our community or another municipality. Costs incurred, what ever they may be, may be assessed to the user. This resolution has the potential of protecting a larger amount available to the City for IRB's while incurring no cost or obligation to the City. Hutchinson's entitlement for 1984 1s $2,484,533 of -which 1% ($24,845.33) needs to be depositied by August 31, 1984. 9-4- EXHIBIT A g Subd. 4. [JOINT POWERS.] An entitlement issuer may enter ------------------------------- 9 an agreement with a local issuer or the iron range resources an- --------------- -------------------------------------------- 10 rehabilitation commissioner or the department of energy and ----------------------------------------------------------- 11 economic development by which the local issuer or- the -iron range -------------------------------------------------------------- - -- - -- ----- 12 resources and rehabilitation commissioner or the department of 13 energy and economic development issues - bonds - pursuant -to 14 issuance authority allocated to the entitlement issuer pursuant ------------------------------------------------------- 15 to this section. The amount of the issuance shall be considere • --------------------------------- 16 as issued by the issuer_ granting use of its allocation for. 17 purpose`s_of previous -use - determination_ =IIBIT B A M O U N T S O F I N D U S T R I A L R E V E N U E B 0 N D S A V A I L A B L E T O H U T C H I N S O N Based On Certain Assumptions M.S. 474.16 Subd. 3. "Entitlement issuer" means a local issuer with an averago unn-aal previous use of $1,000,000 or more based on the highest annual use in three of the calendar years from 1980 to 1983. (and each subsequent 4 years) 1984 1985 1986 1987 iynu b,000,uou *option *option option • 1981 2,950,000, 2,950,000 2,950,000 1982 2,935,000 , 2,935,000 2,935,000 2,935,000 2,935,000 1983 185,000 185,000 185,000 185,000 185,000 185,000 185,000 1984 600,000 2,450,000 600,000 2,450,000 600,000 2,450,000 1985 1,297,000 1,667,000 1,297,000 1,667,000 1986 966,400 1,410,400 3 yr. high average 3,961,666 2 161 666 , , 2,778,333 1 610 666 , , 2,350,666 954 466 , 1,842,366 allotmentAis W rox:) 2,450,000 1,297,000 1,667,000 966,400 1,410,400 572,679 1,105,420 *Option - -An amount that may be available to Hutchinson if we use or enter into a joint powers agreement with another entity. Prepared by: Hutchinson Community Development Corp. August 15, 1984 Mr. Gary D. Plotz City Administrator Hutchinson City Hall 37 Washington Avenue West Hutchinson, Minnesota 55350 Re: Entitlement Amount Dear Gary: Enclosed is form of resolution—of the Hutchinson City Council pursuant to wh e CifF�ects to retain all of its entitlement amount allocation after August 31, 1984, and directs you to submit the necessary letter of intent to issue bonds in uch amount prior to the end of 1984 and a 18 deposit II! �AA.73� to the State prior to September 1. Also enclosed is _rya a form of letter of intent. In the letter of intent the City has to state that it intends to issue obligations pursuant to its allocation (or have obligations issued by another municipality to which the City has transfered its allocation) in 1984. By submitting the letter of intent and deposit the City retains its entitlement allocation until October 31. To retain the alloca- tion after October 31 the City must have allocated the portion to be retained for a specific project which is subject to a preliminary resolution. The resolution mentions the ability of the City under Minnesota Statutes, Section 474.18, subd. 4, to enter into joint powers agreements with other municipalities pursuant to which such municipalities issue bonds using the City's entitlement amount allocation, but does not authorize the City to do this at this time. This transfer of allocation would be done on a case by case basis. apply: With respect to the 1% deposit the following rules DORSEY & WHITNEY A Partnership Including Professional CorWrations 2200 FIRST BANK PLACE EAST MINNEAPOLIS, MINNESOTA 55402 510 NORTH CENTRAL LIFE TOWER 1 ( 612 1 340' 2600 201 THIRD STREET BUILDING B THIRD STREET NORTH 445 MINNESOTA STREET ST. PAUL,MINNESOTA 55101 TELEX: 29-06W GREAT FALLS, MONTANA 59401 (612)27 -80A TELECOPIER: (612)340 -2666 (406 1 129 -3 632 SUITE 675 NORTH P. O. BOX 846 M STREET N.W. 340 FIRST NATONAL BANK BUILDING WAS202)955- 0.20036 SHIN ROCH ESTER, MINNESOTA 55903 (202) 933-1065 15071288-3155 30 RUE LA BOETIE 312 FIRST NA ^ONAL BANK BUILDING JEROME P. GILLIGAN 75000 PARIS, FRANCE WAT ATA,MINNESOTA 55391 (612)475 -0373 1612) 340 -2962' 011 331 562 32 50 August 15, 1984 Mr. Gary D. Plotz City Administrator Hutchinson City Hall 37 Washington Avenue West Hutchinson, Minnesota 55350 Re: Entitlement Amount Dear Gary: Enclosed is form of resolution—of the Hutchinson City Council pursuant to wh e CifF�ects to retain all of its entitlement amount allocation after August 31, 1984, and directs you to submit the necessary letter of intent to issue bonds in uch amount prior to the end of 1984 and a 18 deposit II! �AA.73� to the State prior to September 1. Also enclosed is _rya a form of letter of intent. In the letter of intent the City has to state that it intends to issue obligations pursuant to its allocation (or have obligations issued by another municipality to which the City has transfered its allocation) in 1984. By submitting the letter of intent and deposit the City retains its entitlement allocation until October 31. To retain the alloca- tion after October 31 the City must have allocated the portion to be retained for a specific project which is subject to a preliminary resolution. The resolution mentions the ability of the City under Minnesota Statutes, Section 474.18, subd. 4, to enter into joint powers agreements with other municipalities pursuant to which such municipalities issue bonds using the City's entitlement amount allocation, but does not authorize the City to do this at this time. This transfer of allocation would be done on a case by case basis. apply: With respect to the 1% deposit the following rules 0 Page -2- Mr. Gary D. Plotz August 15, 1984 DORSEY 8c WHITNEY 0 I. Within 5 days of any issuance of bonds pursuant to the allocation the City (or the issuer in the case where the City has transfered the allocation) is to give notice to the Minnesota Department of Energy and Economic Development of such issuance and within 30 days the State will return a corresponding portion of the 1% deposit. 2. If the City returns all or a portion of its entitlement amount to the State before October 31, a corresponding por- tion of the 1% deposit will be returned within 30 days. 3. If after October 31 but before December 20 the City returns all or a portion of its entitlement amount which it retains after October 31 to the State, the State will refund to the City a portion of the deposit equal to 1/3 of 1% of the amount returned. In connection with the proposal to transfer a portion of the City's allocation to other issuers two items bear `=.oning. First, under the present allocation bill it appears the amount of bonds issued by the City in 1984 will not effect entitlement amount in 1985. This is odd in light of the piu vision in the section dealing with transfer of allocations w1J.ch provides that if bonds are issued by the transferee of the allocation they are considered as issued by the issuer granting the use of the allocation for purposes of previous use determination which would indicate the entitlement amount is adjusted annually based on prior use. I would imagine the legislature will review the whole allocation procedure at its 1985 session so the effect of transferring issuance authority in the City's entitlement amount in later years is unclear. In any event, the City does not lose anything by transferring a portion of its allocation which it does not intend to use. Second, under the federal legislation enacting the per capita volume limit the issuer of bonds subject to the limit is required to certify that the allocation was not made in consideration of any bribe, gift, gratuity, or direct or indirect 0 DORSEY & WHITNEY Page -3- Mr. Gary D. Plotz August 15, 1984 0 contribution to any political campaign and that a person making an allocation in consideration of any of the foregoing is subject to criminal penalties. Consequently, because of the broadness of this language the City should not charge a city to which it transfers a portion of its allocation an amount in excess of its reasonable out -of- pocket expenses. once you have reviewed this material, please call me with your questions and comments. JPG:cmn Enclosures cc: James Schaefer s Yours tru y, of Jer e P. 11' an • Minnesota Department of Energy and Economic Development Financial Management Division 900 American Center Building 150 East Kellogg Boulevard St. Paul, Minnesota 5510 Attention: Richard Nadeau Dear Sirs: 0 Pursuant to Minnesota Statutes, Section 474.18, subdivision 3, the City of Hutchinson elects to retain its entitlement amount allocation under Minnesota Statutes, Section 474.18, after August 31, 1984. Prior to the end of 1984, the City intends to issue obligations pursuant to such allocation or to transfer its allocation pursuant to Minnesota Statutes, Section 474.18, subdivision 4, to issuers who will issue obligations pursuant to such allocation. Enclosed herewith is a check for $24,500.77 (18 of the City's entitlement amount) which is the required application deposit under Minnesota Statutes, Section 474.18, subdivision 3. If you have any questions, please give me a call. Very truly yours, Gary D. Plotz, City Administrator GDP Enclosure • • DEPARTMENT OF ENERGY AND ECONOMIC DEVELOPMENT NOTICE OF FINAL ALLOCATIONS OF ISSUANCE AUTHORITT FOR CALENDAR TEAR 1984 Notice to all Industrial Development Bond Issuers and Interested Parties: The Department of Energy and Economic Development has determined the final amounts of issuance authority for calendar year 1984 allocated to entitlement issuers re- submitting certifications of previous use to the Department after enactment of a federal limitation act pursuant to Minn. Laws 1984, ch. 582 §15, to be codified as Minn. Stat. 474.18, subd 2. The Department of Energy and Economic Development has determined the final amounts of issuance authority allocated to entitlement issuers based upon the following: I. The allocations for entitlement issuers and procedures set forth in Minn. Laws 1984, cb. 582 915; 2. The state ceiling for private activity bonds of $150 multiplied by the most recent census estimate of the resident population of the State of Minnesota published by the Bureau of the Census in 1983, which is 4,133,000; and 3. The re- certifications of previous use submitted to the Department by entitlement issuers. The Department used the following formula to determine the final ?'"'"ts of issuance authority allocated to entitlement issuers set forth b: -. INDIVIDUAL ALLOCATIONS TO ENTITLEMENT ISSUERS 4 :18.710.000 (Total state allocation to .Entitlement Issuers) 37.646.47 (Combined 3 year high average for all Entitlement Issuers) equals 62.7143316% z $ 3 year high average for Entitlement Issuer equals $ ISSUER allocation • Issuer Allocation Issuer i Allocation Albert Lea $2,790,788 New Brighton $2,037,589 $1,924,2B5 Alexandria Apple Valley $918,138 $3,10+,370 New Hope New Prague $1,426,51 Austin $1,724,644 I New On Northfield $625, 7 $B98,905 Baxter Becker $660,591 $22,911,636 Owatonna $962,525 Beltran Canty $1,672,382 Park Rapids $11233,382 $804,834 Blaine $2,618,323 Pipestme Piroith $2,935,031 Blamington Brainerd $10,751,327 $11674,473 Princeton $715, Brooklyn Center $7,159,886 Proctor Red Wing $4,160,C51 $2,732,254 Brooklyn Park ®,nrtsville $5,041,187 $11,582,919 Richfield $3,606,U74 Cambridge $2,571,288 Rochester Rogers $2,606,826 $871,729 Can-m Falls ChArtossen $1,037,922 $679,405 Rosaiunt $4,747,475 Chaska $11071,370 Roseville Saint Claud $627,143 $4,567,694 Clog-et Colunbia tbights $1,919,059 $3,347,900 Saint Louis Park $2,799,150 $87,919,849 Coon Rapids $4,295,932 Saint Paul Sartell $4,515,432 Cottage Grove $1,996,406 $1,185,301 Sank Rapids $845, Duluth $101894,525 Savage Shelmpee $1,255,332 $2,569,147 Eagan East Gran ,1 3 $9,901,339 $1,149,763 Shoreview $1,460,199 $26,130,471 East Chili : Prairie $731,667 $9,239,314 Silver Bay South Saint Paul $1,659,839 Eden Eveleth $888,453 Springfield $664, Fveleth $2,416,669 Still�,ater Vathais Heights $1,684,716 $2,022,537 Faribat u Farrnin _t $1,850,073 $636,550 Waite Park $1,369,263 il FergLs Fails $2,571,288 West saint Paul White Beer Lela $821,558 $2,783,471 Fridley Golden Valley $8,137,185 $2,753,159 Willmar $2,054,765 Grand Rapids $1,013,882 Winona hbofti $3,713,734 $471,CP7 Hastings $930,263 y Hibbing Hbpkins $752, $1,941,CO9 $418,710,000 Hitchinsan $2,484,533 Lakeville $3,392,8 Le Suss $2,408,648 Little Canada $1,183,210 Lang Prairie $773,477 Luveme $731,667 Mankato $3,893,515 Maple Grove $1,747,639 Meple.00d $5,261,941 Mff-dota Heights $3,108,540 Mimeapolis $48,917,622 Mirnetorks $13,098,933 Montevideo $772,432 Mrorhrod $946,359 • 0 Second Draft August 3, 1984 Federal Allocation to State $619,950,000 State_Allo�ation_ per- Laws _of_Minnesota_1984_Chapter_582- Private Activity Bonds: HECB $30,000,000 IRRR Commissioner 25,000,000 ii ED 40, 000, 000 ( 95, 000, 000 ) -------------------------- Balance $524,950,000 X80%= Cnt it lenient Issuers 419, 960, 000 Nom- Entitlement Issuer's 104,990,000 State _Rllocati��n_Rd1usted_Per_ ---- of_Minnesata_1984_Chapter_584 Private Activity Bends: HECB $30,000,000 IRRR Commissioner 23,750,000 DEED Business Loans $38,750,040 Farm Loans 5,000,000 43,750,000 -------------------------- Entitlement Issuers 418,710,000 Non - Entitlement Issuers 103,740,000 -------------------- - - - - -- Total $619,950,000 ----------------------------------- --------- --------------- - - - - - -- Ind iv_ ideal _Allocations_tc,_Ertitlement_ Issuers Total State Allocation to Entitlement Issuers $418,710,000 ----------------------------- ---------------- - - - - -- - Total 3 yr. hiq_h average for all Entitment Issuers $667,646,437 equals 62.7143316% multiplied by the 3 yr. high average of $3,961,667 for entitlement issuer Hutchinson equals a $2,484,533 allocation 0 0 Minnesota Department of Energy and Economic Development Financial Management Division (For use by an Entitlement Issuer who wishes to retain all or a portion of its allocation for the period September 1, to October 31) :_rsuant to Minn. Laws 1984, ch. 582 515, subd. 3, to be codified as sect. 474.18, Entitlement Issuers who wish to retain all, or a portion of, its entitlement allocation for the period September 11 to October 31, must submit_- to the Department on or before September 10 a letter of intent stati_� its intention to issue obligations pursuant to its allocation, or a portion of it, before the end of the calendar year or written the time perioa permitted by a federal limitation act. THIS FORM MAY BE USED FOR THAT PURPOSE NAME OF ISSUER: AMOUNT OF ALLOCATION TO BE RETAINED: 14 APPLICATION FEE OF ISSUER ENCLOSED: $ Entitlement allocations not retained by a letter of intent submitted to the Department by September 1, will be transferred to the Competitive Pool for reallocation. Allocations retained may be cancelled by the issuer, until October 31, by submitting a letter to the Department, by that date, stating its cancellation of the allocation or portion of it. The 1% application fee relating to the portion cancelled will be refunded within 30 days. Direct this letter and future correspondence to: Date: Minnesota Department of Energy and Economic Development Business Financial Management Division Room 900 150 E. Kellogg Blvd. St. Paul, MN 55101 ATTN: Richard Nadeau Authorized Signature c - -t A M O U N T S O F I N D U S T R I A L R E V E N U E B 0 N D S A V A I L A B L E T O ^^QQA k. �,1 ,veiA t+t'�1, HUTCH I N S 0 N `( C' , OBased On Certain Assumptions M.S. 474.16 Subd. 3. "Entitlement issuer" means a local issuer with an average annual previous use of $1,000,000 ,or more based on the highest annual use in three of the calendar years from 1980 to 1983. (and each subsequent 4 years) L 3 yr. avi allotmei 60Wpp 1984 1985 1986 1987 1980 6,000,000 *option *option *option 1981 2,950,000. 2,950,000 2,950,000 1982 2,935,000 , 2,935,000 2,935,000 2,935,000 2,935,000 1983 185,000 185,000 185,000 185,000 185,000 185,000 185,000 1984 600;000 2,450,000 600,000 2,450,000 .600,000 2,450,000 1985 1,297,000 1,667,000 1,297,000 1,667,000 1986 966,400 1,410,400 high ara e 3,961,666 2 161 666 , , 2,778,333 1 610 666 , , 2,350,666 954 466 , 1,842,366 ,t'is rox: ) 2 450 000 , , 1 297 000 , , 1 667 000 , , 966 400 , 1 410 400 , , 572 679 , 1 105 420 , , *Option - -An amount that may be available to "Hutchinson if we use or enter into a joint powers agreement with another entity. Prepared by: Hutchinson Community Development Corp. 12) 587.5151 CITY OF HUTC6- INSON 37 WASHINGTON AVENUE WEST HUTCHINSON, MINN. 55350 M E M 0 R A N D U Date: August 22, 1984 TO: Hutchinson City Council FROM: Hutchinson Planning Commission SUBJECT: Sign Variance Request as Submitted by S & L Rehab Pursuant to Section 6.05, B3, of Zoning Ordinance No. 464, the Hutchinson Planning Commission is hereby submitting its findings of fact and recom- mendation with respect to the aforementioned request for a variance. HISTORY On March 15, 1984, an application was submitted by S & L Rehab., Limited Partnership, for a sign variance to allow two 14' banners that would project 48^ from the building on the north and south corners along the west side of the building located at 101 Park Place, 10 1st Ave. S. E. A public hearing was held at the regular meeting of the Planning Commission on Tuesday, April 17, 1984. At the public hearing it was pointed out that one of the banners was already in place on the northwest corner of the building; it lists the name of the building - 101 Park Place. The second banner would list the various tennants of the building. Discussion led to the continuance of the hearing, giving the Planning Commission time to review the sign ordinance. The hearing was closed during the course of the regular meeting on August 21, 1984. FINDINGS OF FACT 1. The required application was submitted and the appropriate fee paid. 2. Notices were mailed to the surrounding property owners as well as published in the Hutchinson Leader on Thursday, April 4, 1984. 3. After review, it was the consensus of the Planning Commission to not recommend any changes in the sign ordinance at this time, and to make a recommendation on this request based on the current sign ordinance. q-M n RECOMMENDATION 11 Itis the recommendation of the Planning Commission that the aforementioned request for a sign variance to allow a 48" by 14, banner on the southwest corner of the aforementioned building be denied. The Planning Commission further recommends that the existing banner - address banner - (stated to be only 36" wide) located on the northwest corner of the building be allowed as it does not advertise a business but identitifes the building. Respectfully submitted, Roland Ebent, Vice - Chairman Hutchinson Planning Commission 2) 587 -5151 Y OF HUTeHINSON HNG TON AVENUE WEST JSON, MINN. 55350 M E M O R A N D U M Date: August 22, 1984 TO: Hutchinson City Council FROM: Hutchinson Planning Commission SUBJECT: Variance Request as Submitted Ken Stapleton Pursuant to Section 6.05, B3, of Zoning Ordinance No. 464, the Hutchinson Planning Commission is hereby submitting its findings of fact and recom- mendation with respect to the aforementioned request for a variance. HTSTORY On July 31, 1984, an application was submitted by Ken Stapleton for a variance to allow a 4' reduction in off- street parking requirements at 25 Century Avenue. The request is necessary because Mr. Stapleton intends to convert the house into a duplex, which would require 4 parking spaces. A public hearing was held at the regular meeting of the Planning Commission on August 21, 1984, at which time there was no one present who objected to the request. FINDINGS OF FACT The required application was submitted and the appropriate fee paid. 2. Notices were mailed to the surrounding property owners as well as published in the Hutchinson Leader on Thursday, August 9, 1984. 3. Staff recommended the variance be granted as the request is for an existing structure,.with a 14' boulevard (usually 101). RECOMMENDATION It is the recommendation of the Planning Commission that the aforementioned request for a variance be granted. Respectfully submitted, Roland Ebent, Vice - Chairman Hutchinson Planning Commission 9 n Ht"HU-k IA .Mw' 22 -115 - CROSS SECTION 10 SOUARES TO INCH � m (612) 587-5151 rHUrcy CITY OF HU % C/:IRISON 37 WASHINGTON AVENUE WEST HUTCHINSON, MINN. 55350 M E M O R A N D U M DATE: August 22, 1984 TO: Hutchinson City Council FROM: Hutchinson Planning Commission SUBJECT: Preliminary and Final Plat Santelman's Second Addition Pursuant to Section 3.20 of Subdivision Ordinance No. 466, the Hutchinson Planning Commission is hereby submitting its findings of fact and recommendation with respect to the aforementioned request for a preliminary and final plat. HISTORY On July 31, 1984, an application was submitted by Kenneth Santelman for a preliminary and final plat to be known as Santelman`s Second Addition. A public hearing was held at the regular meeting of the Planning Commission on August 21, 1984, at which time there was no one present who objected to the request. FINDINGS OF FACT 1. The required application and plat maps were submitted and the appropriate fee paid. 2. Notices were mailed to the surrounding property owners as well as published in the Hutchinson Leader on Thursday, August 9, 1984• 3. In a memo dated August 7, the Director of Engineering recommended approval of the plat based on 7 points- RECOMMENDATION It is the recommendation of the Planning Commission that the request- ed Preliminary and Final Plat be approved as submitted, with 7 stipu- lations as recommended by the Director of Engineering. Respectfully submitted, Roland Ebent, Vice - Chairman Hutchinson Planning Commission M 110 I 4 Q 3 J o J -_ 2 L 91 {a I 2 f z¢ 2a.ox 26.s5 uo _ 14 n T. H. 7" E7 AST HILLTOP p D Ozl� 1,O ti 66 I W W U) 0 "SC .25.W - =W 2C: oC 1 o I 1 1 i I i i I _Ob 5C 10 II 2 _ -^ ZDD.00 —_ —" — LIN_DY "'` LANE_ �y o 4lu SG 125 2• ,C 9` \ I 0 G 2 n >._ .5 IC ZOn o a5_ 25 7� 2 4. 10 a Q '+ — -41 C jHf_IC3 14 O ��y ( ' 125 4 1" 1r Qh J g'= N 5 8 145 __ -7. y DRIVE 1 I 1�3J5 - "- T5 ]S TS 75 75 >p Oi J 2- 3 4 5 6 9 00 T >• > >5 >5 i� ISM, OT • 6 66 O Drainage and utility easements ore shown thus I Being 6 feet In width and adjoining lot lines unless otherwise indicated on the plot i a ail Hansen Thorp Peg. -• -" Surveyors onj Ef,;, .i N89.21 00 "W 14800 � w O '0 W N M 0W a 7 Z V : 0 1.18.00 East If _- 130.00 a N89'21'00-W 1 j O p 1 , 25 ess ° N 6 °. r' so ,•fit !o 5a O o iN - scale in feel et� -' - 130.00 - N89'21 00'W � r s O .O O 5 0 N A N A � r 130.00 3: N89-21 00"W 00 OI L11 OW O O 0 0 a, 'j Out. PI Y] N 4 N m r•'ll I -L. Orientotton of -his heor,ng system O i' ^ p0, is assumed on 2 130.00 - - - N89-21 00'W Y • Denotes iron monanant found O Denotes iron monument set o O l412 Inch by 19 inch ran pipe marked N 1 3 ry by License No. 9626.) '- J .A 130.00 I •_ NB9 °21'00 W :r% .I L i 0 Ip tj 2 _N N 130.0 - — i _NB9 °21'00 0'W ' 1 O o p (a N m ' O t U) ' e m I ... R•821.53 i c.,r- - IS 32 - -79.6I .. 50.28 -.- - `_� 6.5.33'56' East �'.L �� i �_i" i '^ ' i p is t f •. �. f1 -_I_ a Drainage and utility easements ore shown thus I Being 6 feet In width and adjoining lot lines unless otherwise indicated on the plot i a ail Hansen Thorp Peg. -• -" Surveyors onj Ef,;, .i 2)587-5157 CITY OF HU/CHINSON 37 WASHINGTON AVENUE WEST HUTCHINSON, MINN. 55350 M E M O R A N D U M DATE: August 22, 1984 TO: Hutchinson City Council FROM: Hutchinson Planning Commission SUBJECT: Preliminary Plat Orchard Park First Addition Pursuant to Section 3.20 of Subdivision Ordinance No. 466, the Hutchinson Planning Commission is hereby submitting its findings of fact and recommendation with respect to the aforementioned request for a preliminary plat. HTSTORY On July 30, 1984, an application was submitted by Richard Schmidtbauer for a preliminary plat to be known as Orchard Park First Addition. A public hearing was held at the regular meeting of the Planning Commission on August 21, 1984, at which time there was no one present who objected to the request. FINDINGS OF FACT 1. The required application and plat maps were submitted and the appropriate fee paid. 2. Notices were mailed to the surrounding property owners as well as published in the Hutchinson Leader on Thursday, August 9, 1984. 3. In a memo dated August 7, 1984, Director of Engineering Priebe recommended approval of the plat, listing 5 items as a basis for his recommendation. RECOMMENDATION It is the recommendation of the Planning Commission that the request- ed Preliminary and Final Plat be approved as submitted, with stipu- lations as recommended by the Director of Engineering. Respectfully submitted, Roland Ebent, Vice - Chairman Hutchinson Planning Commission i - e CI O ti I n O z ~ I� O m a c ,n c q-F i 31?1 �I N OE) EO I VCS ; =IU_ o �! ^ ED oh , viz � z_ East 24 l' .00— 120.00 Y LY _ •„ p ...... ... ... .rte.. L L' op r� 1 LO N 1 P'ai P m, div, i- -�"m EXISTING MANHOLE I 00 f INVERT ELEV. •56.15 O R1 C ..� N uC 1 �. 1. Intl M l•t 0 A ( i 1'R 0• i0' 91 ` t .. •_ ". c 1 N I l" 15.72 t. 1 .m ['( . p0 _,. -A00• TEMPORARY C.D. 221.66 __ r1 1 E M ,END OF EXISTING SEWEW' N N IS 7104 :N O .00 N • r IW O+ N, Or '156.92 .. _ $•.� `o. G N W O,n ya ism =0 184 a C5 a'ar East r c + :; i PROPOSED MANHOLE I V INV. ELEV. • 56.35 N Q �. 0 W re d _. o _ 3 1 2 0 r m i m rr M a W 0 Q in .I' o �0 0 a 60.00 Qti West fZ U Co 0 IT m /5 m U - izo.00r •_ - [z - 160.00 - - 3 30 i— ..t_240.00 . West 1N V. ELEV. • 56.56 RLS. N0. • The north line of Tracts A and E of R L 5 No 3 is assumed to hove a hearing of Eos, _ I • Denotes iron monument lound O Denotes iron monument sef11 /2 inch by 14 inch iron pip* marked by Llcens. No. 9626 Drainage and utility easements ore shown thus• Bung 6 feet in width and adloming lo, Imps unless otherwise mdicated on the map. 7! 75 seal. in feet i - e CI O ti I n O z ~ I� O m a c ,n c q-F 24 17 L:j 25 E Yle 45 7 43 20 10 21 as 41 0 12 Q 37? 36 \ �' 31 j�✓ 17 .� CnJ,\:.!_D::i. 40 K fr M ; C 39 36 Z5 ,Is Qt • B C - -- - - -- &7 Lc /,z C/ AVENUE - __ is E g c 1 3 2 _ � — m. se 1 a]e � r•_r es( rae []c []: :e -}a_� „_f�A. lU _ S`_:OtJD _ f :+DD1710N j 0 1 c AREA TO BE PLATTED {pnRl) AS ORCHARD PARK FIRST ' +ADDITION .!a ]: _ i! 1 1 ? �(61587 -5151 - - -- r CITY OF 17LI 'CHINSON 37 WASHINGTON AVENUE WEST HUTCHINSON, MINN. 55350 M E M O R A N D U M DATE: August 22, 1984 TO: Hutchinson City Council FROM: Hutchinson Planning Commission SUBJECT: Preliminary and Final Plat Rolling Oaks Fifth Addition Pursuant to Section 3.20 of Subdivision Ordinance No. 466, the Hutchinson Planning Commission is hereby submitting its findings of fact and recommendation with respect to the aforementioned request for a preliminary and final plat. fp7Z.101W4 On July 31, 1984, an application was submitted by John Miller for a preliminary and final plat to be known as Rolling Oaks Fifth Addition. A public hearing was held at the regular meeting of the Planning Commission on August 21, 1984, at which time there was no one present who objected to the request. FINDINGS OF FACT The required application and plat maps were submitted and the appropriate fee paid. 2. Notices were mailed to the surrounding property owners as well as published in the Hutchinson Leader on Thursday, August 9, 1984. 3. In a memo dated August 7, 1984, Director of Engineering Priebe recommended approval of the plat, listing 5 items as a basis for his recommendation. RECOMMENDATION It is the recommendation of the Planning Commission that the request- ed Preliminary and Final Plat be approved as submitted, with stipu- lations as recommended by the Director of Engineering. Respectfully submitted, Roland Ebent, Vice - Chairman Hutchinson Planning Commission av 011 1. • - 154 26 h •' R.v 108 E7 B. 4560 r.._- .l.S 0.21.02.2 ._r -.. �'-� -•! C 10 J' 100 + 3 9.69 1:69•4400'E t 11-3 5.23 70 SC 25 D - 240.00- f:j 43. )0.66 a 52i 0.13.3140- - 30.00 100.00 _ u0 OO C27049 ._ _ - - W w m C d W m ' e. E b�1-e o0 4 0. . 0• N _ O O O,6 N O 1_p O .1 v0 ' OO N O WO 2 C 000 i N• I. � N 1 : -1 105.71 i - 100.00 -_ - 100 00 - — - - 100.00 -- - - - 405.71 - .- -_ __ --- l I h v_ 1 \ l 6 � �. 11S @� I� • . O f 7 78 I NN - lb7 �95 57j O''g6•W I Onentm.en of IMa oeennP a7alem is aafumee O Denotes 1/2 mtA 07 14 into von ►tee monument D.o-noye one ...... ..semenIs ore aLOrn IAus+ 1 1 6a' ^P 6 Let v. ...e1r ono ee mn.n P /01 7 �• 1 Imes orneaa mner.»e lneao»0 (612) 587 -5151 F CITY OF HUTCHINSON 37 WASHING TON AVENUE WEST HUTCHINSON, MINN. 55350 M E M O R A N D U M DATE: August 22, 1984 T0: Hutchinson City Council -Rum: Hutchinson Planning Commission Preliminary Plat for David Lee Acres as submitted to the County by Jim Reid At the regular meeting of the Planning Commission on Tuesday, August 21, 1984, the aforementioned plat was reviewed. It is the recommendation of the Planning Commission that the preliminary plat be approved with the stipulation that the property use remain agriculutural or residential and that the State of Minnesota Department of Transportation would approve an access to Lot 2 of the plat, as well as approve the plat. �r �r PRELIMINARY PLAT Owner• Jim Fend, HuleMnsan,Mn Surveyor- Willard Pellmen, Hutchinson, Mn. License No. 9626 ,.,......,., a _. ' eu•ao -arc DAVID LEE ACRES Total area - 6.0 acres Lot I • 3.96 acres Lot 2 - I. TT acres a — BLOCWy ONE -L_ I LO� -'.�` '4 - -a ,\. LOT 2 'sea i NN 16 d- 1 I; M �. • I I !I 00 I _V ;e• \I\ 1 e ' 1= w I I M �. • I 00 I _V ;e• \I\ 1 e ' w I I I .. ........ 1 Taw Iq (612) 587 -5151 " 'HarcH' CITY OF HUTCHINSON 37 WASHINGTON AVENUE WEST HUTCHINSON, MINN. 55350 M E M O R A N D U M DATE: August 22, 1984 T0; Hutchinson City Council Hutchinson Planning Commission SUBJECT: Preliminary Plat for Peterson's Estates as submitted to the County by Dennis Kahl At the regular meeting of the Planning Commission on Tuesday, August 21, 1984, the aforementioned plat was reviewed. It is the recommendation of the Planning Commission that the preliminary plat be approved. 95 11 ,, _ I 1 I `•�1 0 I y 6 yV O o _ N 1•./..1/V,la N � tylo� 2 V1 - V) Z r 'Y 5._ 2 N79'02'S0•E '� . 495.1) I 1 i I 259 L � I I I i '0 ACFtE • LOT 1 3 '. (1.0 ACRE) I 1 az - 1V �aJ� L_ -mil! � \ - .. 1(1(0 ACREI \ \\ , �_l * KAHL 126 Iwo LOT 4 (1.0 ACRE L ?a Tp- LOT S I `cam. (I.0 A -. -. 1 .: _ 435 � I a071, N86.58'10' W � S \ OWNERS: EARLING OG Z DENNIS K \ DAVID JO • SURVEYOR- \ \ WILLARD PE LICENSE NO �T 6 44 N \ \�� d \ CRE) \\ ,' \ Jx,_� rd zaz.' f (612) 587 -5151 -0- - - --- - -- - - �HU7CHj t -,ft i 0 t Ul- cir�rE;`.� SIC t! 37 .'✓ASHINGTON AVEP.'UE WEST HUTCHINSON, M1NN. 55350 M E M O R A N D U M DATE:, August 21 1984 TO: Planning Co=nission, Mayor and City Council ------------------------------ FROM: Director of Engineering ------------------------------ c,..,.., " Hanson's Subdivision of Peterson Estates" - .. T: ------------------------------ — — — — — — — — — — — — — — — — — — — — — — — — — — — — Preliminary Plat Lot 2, Block 1, Peterson Estates Ate -ached is a copy of the County Planning Commission minutes of October 27, 1982. According to said minutes, the County and Mr. Fay were made aware of the restrictions the City had placed on "Peterson Estates" when the eliminary Plat was approved. Since the City was led to believe that no one was knowledgable of said restrictions when the "sketch plan" for Hanson's subdivision was sub - Witted, I request that you require the Preliminary Plat to be changed to 4 or 5 lots with the street extended to the west line, for good planning by the City. This decision can be made now or this item can be deferred until the September meeting if you desire to study it further. R!5 PLAN-I'ING ADVISORY Co: ^:ISSlON *'.FETING McLeod County, Minnesota October 27, 1982 The McLeod County Planning Co:- ission net in the Commissioners' Room at 7:30 p.m. on Wednesday, October 27, 1982, for their regular scheduled meeting. Chairman Bonniwell called the meeting to order with Donald Falconer absent. Upon a motion by Commissioner Fiecke and seconded by Kenneth Donnay, it was moved to approve the minutes of the September 29, 1982, meeting. The Commission proceeded to consider Rezoning Application No. 6 -82 and Platting Application No. 5 -82, submitted by Donald M. Peterson. The Secretary read correspondence dated October 29, 1982, from the County Engineer and ti,< Jity of Hutchinson regarding the preliminary plat. He also reported that the Hassan . -lley Town Board had approved both applications. Mr. Frank Fay appeared before the Commission on behalf of Mr. Peterson. Mr. Fay requested the Commission's approval of the rezoning of the property from agricultural to rural residential for the proposed subdivision identified as "Peterson Estates." Various questions were asked by nearby property owners, Mr. and Mrs. Herbert Kottke and Norbert Shimek, regarding annexation, on -site utilities, drainage and the width of the roadway easement along the easterly boundary of the subdivision. After giving due consideration to the request and allowing everyone an opportunity to voice their concerns, a motion was made by Commissioner Fiecke and seconded by Kenneth Donnay to recommend to the County Board that Rezoning Application No. 6 -82 be granted. The Chairman declared this motion approved by a unanimous vote. Upon a motion by Kenneth Donnay and seconded by Rudolph Paehlke, it was also recommended to the County Board to approve the Preliminary Plat of "Peterson Estates" situated in Section 7 of Hassan Valley Township, provided a 50' roadway easement is located along the easterly boundary of the subdivision. Chairman Bonniwell declared this motion approved upon a unanimous vote. Richard Larson, on behalf of Dennis K. Albertson, appeared before the Commission for consideration of a sketch plan situated in Section 25 of Acoma Township. The Secretary introduced the correspondence received from the County Engineer dated September 20, 1982. The Secretary also informed the Commission that verbal approval was received from Marlow Priebe, Director of Engineering for the City of Hutchinson. "w 2) 587 -5151 z16-1-j1' CITY OF NUTCtIli-LISON 27HUTCHINSON, 37 WASHINGTON AVENUE WEST MINN. 55350 M E M O R A N D U M DATE:. August 22. 1984 T0: Hutchinson City Council — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — FROM: Hutchinson Planning Commission SUBJECT: Conditional Use Permit as submitted by James Heikes to the County At the regular meeting of the Planning Commission on Tuesday, August 21, 1984, the aforementioned request for a conditional use permit to allow a cart track on property located on Hwy, 7 East, was reviewed. It was the recommendation of the Planning Commission that the permit be approved with the stipulation that adequate parking be provided for all activities and surfaced as per County requirements. 1 0 X ' / (612) 879 -2.511 X CITY OF HUTCHINSON 37 WASHINGTON AVENUE WEST HUTCHINSON, MINN. 55350 M E M O R A N D U M DATE: August 24, 1984 TO: _ Mayor and—City Council _ _ _ _ _ ._ _ _ _ _ _ FROM: _ Ralph Neumann QLR.�:) _ _ _ _ _ _ _ _ _ _ — _ SUBJECT: _ Equipment purchase for Waste -water treatment plant Randy De Vries has requested that the City purchase a "POLY BLEND" mixing machine for the Waste -water treatment plant. A demonstration unit was installed on a trial basis at the plant and proved very economical and efficient. Jim Weldey from R C M is familiar with this unit and will have the machine specified in our new plant. With this in mind we do have salvage value when the new plant is built. Money is available in the departments finances. Cost 3500.00 Pay back in 6 to 8 months See attachments. 9- Corbett Associates, Inc. P.O. Box 29375 7207 Kyle Ave. N Minneapolis. Minnesota 55429 Tel.612.566.0817 r 0 August 10, 1984 CITY OF HUTCHINSON 37 Washington Ave. West Hutchinson, Minnesota 55350 Attention: Mr. Randy DeVries Reference: Stranco, PolyBlend Dear Randy: I'm getting back to you with all the information I promised to send. Please read through this at your leisure. I hope the PolyBlend test is working as well for you as I anticipated. Below are the calculations from what I ob- served yesterday at your plant. 1. Present System: 120 GPH at a 1% solution (Nalco 7122) 120 X 8.33 = 999.6 pounds /hour solution .01 X 999.6 = 10 pounds /hour neat polymer 2. PolyBlend System: 40 GPH at a .75% solution 40 X 8.33 ;-- 333.2 pounds /hour solution .0075 X 333.2 = 2.5 pounds /hour neat polymer 3. Apples to Apples; 3 X 40 X 8.33 = 999_6 pounds /hour solution 3 X 2.5 lbs. /hour = 7.,5 pounds per hour neat polymer 30 7.5 = 25% reduction polymer 16 Justification For Purchase: 1. Annual polymer cost is $40,000.00 25% reduction equals $10,000.00 Payback is 4 to 5 months 'HOW MUtH POLYMER IS ENOUGH? After a seven -hour test we saved $7500 a year! By Ken Schwartz, Superintendent of the Sewer Dept. Carpentersville, Illinois We've been using polymers in the slurry going into our filter belt presses for twelve years, and YYc were convinced we knew the optlimmim, amount to use in our system. What :ve didn't know was that our polymer b;=: !ding system had been made obsolete by recent tech- nology which meant, in effect, that we were wasting $7500 of polymer a year. We discovered the waste in a test that took only seven hours to run. The Carpentersville, Illinois Sewage Treatment Plant, a secondary treatment activated sludge process type, serves an area population of 23,500 people. In dewatering the sludge, we were running a 1 -2% slurry through two filter belt presses and getting 12 to 13 yards of 18% cake in each 7'/4 hour daily oper- ating period. To aid in coagulating the solids and releasing thewater, wewere pumping a blend of 5 gallons of poly- mer and 1100 gallons of water into the slurry lines during the same period of operation each day. The blend of 5:1100 gallons was not arbitrary decision but had,been carefully worked out in bench tests as well as tests on the presses. We were turning out good quality sludge at a consistent rate, and we were using the optimum amount of polymer for our system. A schematic of our old set -up is shown in Figure A. Two aspects of it drew my attention as needing improve- ment. The first were the excessively long pipes through which the polymer blend was traveling before it met with the slurry and then more long pipes before it entered the presses. At some time in the past, someone had figured that the polymer needed time and dis- tance to properly exert its influence on the slurry. I experimented by running the polymer blend directly to the presses and found it didn't make any difference. Therefore, I knew we could shorten the pipes, but since they were already in place we decided to keep the lines the way they were, at least for the moment. The second aspect that con- 11 Stranco's compact drum - mounted PolyBlend System feeds the wafer /polymer blend directly info the slurry pipes leading to the presses completely eliminating the large tanks, pumps and related piping, and the hazardous ladder climbing. cerned me was that of safety. Because our budget hadn't allowed for a meter- ing pump, we were scaling a ladder with a five gallon pail of slippery poly- mer. A little spill of it on the steps of the ladder could easily lead to injury. A few months ago, my interest was again aroused concerning these prob- lems when, at a meeting of the Fox Valley Operators, I learned of a new polymer blending system, called Poly- Blend and manufactured byStrancoof Bradley, Illinois, that had been installed at the Yorkville - Bristol Sanitary District. I decided to investigate. I was surprised, but skeptical, when the technical repre- sentative came to demonstrate it. I won- dered how a 23" h ig h by 10" wide by 16" deep machine could replace all the stuff we had and still do the same job. The technical rep said that the key to cutting polymer usage is to fully acti- vate the polymer by extending the polymer molecules, and that the secret to the system was the "flipping" of polymer in a low- sheer, high -energy, back -mixed environment that couldn't be duplicated in static mixers or large tanks with agitators. I was skeptical and took a "show me" attitude. To test it, we put the polymer in a five gallon pail. Then we ran a hose from the PolyBlend System to the pail and another hose from the system to PZ.'� 1b RESOLUTION NO. 7841 CITY OF HUTCHINSON RESOLUTION FOR PURCHASE The Hutchinson City Council authorizes the purchase of the following: ITEM COST PURPOSE DEPT. BUDGET VENDOR - Yblend PB -2 3500.00 operation of plant Sewer Yes Stranco The following items were authorized due to an emergency need: ITEM Date Approved: Motion made by: Seconded by: COST PURPOSE I DEPT. I BUDGET I VENDOR Resolution submitted for Council action by: r 587 -5151 F CITY OF HUTCHINSON 37 WASHINGTON AVENUE WEST HUTCHINSON, MINN. 55350 TO: Mayor & City Council FROM: Bruce Ericson, Parks & Recreation Director DATE: August 23, 1984 SUBJECT: Information Sign at Fireman's Park The Chamber of Commerce Tourism Committee orginally requested up to $1,500 for an information sign to be constructed at Fireman's Park. At that time $500 was approved and the actual sign has been built. However, there are three steps left to complete the sign (1) the lighting must be installed, (2) the plexiglass needs to be added and (3) the cement apron must be installed. Currently we have spent approximately $400 to date and I estimate the cost of completion as follows: (1) lighting $250 (2) plexiglass 200 (3) cement 150 Using these estimates, the total cost of the sign will be approximately $1,000. Therefore, I am requesting another $500 in order to complete the project. klm REGULAR COUNCIL MEETING GENERAL FUND Automation Supply Co. Bjerke Oil Co. Blue Cross /Blue Shield Cenex Chronicle Advertiser Communications Auditors Don Streicher Guns Gametime Harburn Enterprises Hutch. Police Dept. - Petty Cash Hutch Fire Dept. Relief Assn. Hutch Fire Dept. The Independent Review Holly Jones Ronald Kirchof£ Litchfield Piano Service LOGIS Douglas Meier Minnesota Dept. of Public Safety Minnesota Dept. of Transporation MN Mun. Finance Officers Assn. Steven Olson Popular Photography Marlow V. Priebe Quast Transfer, Inc. Radisson.Arrowwood State Treasurer James Schaefer Technical Publishing Sue Wetterling Eugene Baasen WATER AND SEWER FUND Cenex Blue Cross /Blue Shield Curtin Matheson Scientific, Richard Ebert North Central Sec. AWWA Power Process Equipment St. Treas. PERA LOGIS AUGUST 28, 1984 Printwheel $ 49.15 Avaition Fuel 11,520.00 Medical Ins. 11,592.79 July Charges 4,370.08 Advertising 66.80 Radio Repair 35.75 Seat Back Organizer 35.00 Hook Pliers 113.09 Emblems 112.42 Misc. expenses 272.84 1984 Assessment 4,500.00 Reimbursement of expenses 403.63 Advertising 76.65 Concession Stand Employee 36.85 Mileage 82.80 concert expense 45.00 July Charges 2,730.43 Misc. Expense 4.52 Connection Charge 40.00 Subcription 55.00 Conference Registration Fee 75.00 Reimbursement for Safety Glasses 40.00 Subscription 5.99 Mileage 48.76 Freight Charges 26.00 Room Deposit 75.00 PERA contribution 3,456.87 Professional Services 1,749.55 Service Handbook 24.67 Concession Stand Employee 26.80 Reimbursement for Safety Shoes 20.00 $41,691.54 July Charges 195.69 Medical Ins. - August 1,281.97 Inc. Repairs 66.46 Safety Shoes Reimbursement 20.00 Conference Reg. Fee 65.00 Professional Services 483.75 Employer Contribution 277.68 July Charges 899.06 3,289.61 �' K . REGULAR COUNCIL MEETING AUGUST 28, 1984 CENTRAL GARAGE FUND Blue Cross /Blue Shield August Medical Ins. 174.60 Bowman Distribtuion Center Battery Protectors 21.60 State Treasurer PEEA Employer Contribution 39.32 235.52 1981 PARKING IMPROVEMENT BONDS Bennie Carlson Contract Payment 669.30 LIQUOR STORE FUND Ed Phillips & Sons Wine 2,411.68 Griggs, Cooper & Co. Liquor 1,718.79 Coca -Cola Bottling Co. mix 1,033.85 Hutchinson Utilities July Charges 827.45 Junker Sanitation July Services 193.50 City of Hutchinson - General Transfer of Funds 20,000.00 Ed Phillips & Sons Wine 1,683.80 Twin City Wine Co. Wine 1,599.45 Griggs, Cooper & Co. Liquor 1,349.57 Quality Wine & Spirits Liquor 1,201.57 Old Peoria Co. Liquor 1,233.65 Commissioner of Revenue June Sales Tax 5,091.99 Commissioner of Revenue July Sales Tax 8,499.26 St. Treas - PERA Employer Contribution 166.10 $47,010.66 11 August 13, 1984 0 PROPOSAL FOR A CABLE TV LOCAL PROGRAMMING VENTURE, between the City of Hutchinson, HAVTI, and Hector Cable. INTRODUCTION: 'Phis proposal would combine the resources of Hector Cable, Hutchinson Area Vocational Technical Institute, and the City of Hutchinson and its cable subscribers to develop a multi -use Television Center. The Television Center would produce programming for local Cable TV to be distributed on local Cable Channel 10. The Television Center would also continue to be used by HAVTI to meet its video needs, and equipment would be shared on a cooperative basis to meet both the needs of HAVTI and cable TV local programming. The proposal provides for the staffing, equipment, and maintenance needed for success of the proposed Television Center. All parties to the agreement would contribute to the funding of the Television Center and would share in the benefits. The staff person to run the center would be key to the success of the Television Center. Cable Channel 10 Community Announcements, Ads, and other character generated messages would continue to be the right and responsibility of Hector Cable and the HAVTI. These announcements would be on Channel 10 except when local programming is being cablecast. The program schedule would be determined by the Television Center Director. It is expected that community interest programs such as City Council meeting coverage would continue as in the past. REGULATION: It is proposed that a committee be established to oversee the TV Center Operation. The committee might include: One representative from The City, HAVTI, Public Schools, Cable Company, and Citizens of Hutchinson, Cable Subscribers, and Non Subscribers, or a combination as mutually agreed upon. The committee would work with the TV Center Director to promote, regulate, and plan the TV Center use as it relates to Cable TV programs. ! 0 SUMMARY: The Hutchinson AVTI is requesting to enter into an agreement to coordinate the local programming for Hutchinson providing that: 1. The Cable Comapny will contribute a minimum of $12,000 to hire a local Television Center Director who will work at the Vocational school under the policy and procedures set up by the Vo -Tech and TV Center Operations Advisory Committee. 2. Present equipment owned by the Cable Company will be donated to HAVTI and the Cable Company will continue to contribute $2,000 to replace and update equipment as per agreement with the city. 3. A transmission Center will be set up at the Hutchinson Area Vocational Technical Institute. 587 -5151 CITY OF HUTCI- INSON 37 WASHINGTON AVENUE WEST HUTCHINSON, MINN, 55350 TO: Mayor & City Council FROM: Bruce Ericson, Parks & Recreation Director DATE: August 23, 1984 SUBJECT: Concert 'O �G 2 'O, pal 9�0 The following is the final financial report from the Louise Mandrell concert. Although the concert did not show a profit, I feel the event was very successful and have had numerous compliments from those who attended. Total Expenses $15,663.54 Total Revenue $7,903.60 Difference 7,759.94 Received from Dale 5,819.95 Balance 1,939.99 Rent /Staff time etc. 370.00 Concessions 400.00 Cost of Event $1,169.99 Concerts such as this are a "major event" for the city and there are many other events which can be considered to operate at a loss such as; the Water Carnival, Arts & Crafts, County Fair, Concerts in the Park, etc. In all these events, our department spends considerable time with no direct compensations. I'm not suggesting that we discontinue this service or that we operate concerts as a loss, because if our policy for concerts is to charge rental and all staff time, then a promoter would be foolish to consider Hutchinson for such an event because it would not be a competitive rate. We have to realize that the Hutchinson Civic Arena is not the "Met Center" in fact, Joe Bonsall of the Oak Ridge Boys thought it was an "airplane hangar ". When we hold an event such as this, we do not try to compete with other revenues with more elaborate facilities. However, we can and do compete in the area of service and hospitality. This may seem like a minor point, but the "hometown" atmosphere created is very much appreciated by both the aud- ience and the artist. klm (612) 587 -5151 _ Al AN CITY OF HUTCHINSON 37 WASHINGTON AVENUE WEST G,P NUTCHINSON, MINN. 55350 OAP August 17, 1984 O?� Councilmen Pat Mikulecky and Members of the Hutchinson City Council RE: Minnesota Government Data Practices Act Dear Councilmen Mikulecky: At a recent council meeting the provisions of the Minnesota Government Data Practices Act was discussed. I was specifically asked whether the government data practices act prohibited discussing certain items of information at an open public city council meeting. Minnesota Statutes 13.43 provides that certain personnel data is public. Among the items of public data are "the status of any complaints or charges against the employee, whether or not the complaint or charge resulted in a disciplinary action; and the final disposition of any disciplinary action and supporting documentation ". Minnesota Statutes 13.43 Subd. 4 states "all other personnel data is private data on individuals, except pursuant to a valid court order." In my opinion the manner to be discussed at that council meeting concerned a complaint or charge against a city of Hutchinson employee. As such, the only information concerning that complaint or charge that section 13.43 Subd. 2 makes public is "the status" of the complaint or the final disposition of any disciplinary action. At the time of the meeting, it was my understanding that the complaint was still being investigated. The status of that complaint would therefore be "investigation pending." If disciplinary action were to be taken, then when that disciplinary action was finally disposed of, the final disposition could be made public since that would be public data. Until a final resolution of the matter is achieved, I do not feel that it is appropriate to discuss the ongoing investigation or inquiry in a public meeting. I would like to stress that there is very little case log offering guidance in this area. I have purposely interpreted the government data practices act in a broad manner. I do this knowing that if I am in error public information will be discussed in a manner that may result in a violation of the Minnesota Open Meeting Law. In order to explain the reasoning behind my broad interpretation, I would like to quote from the League of y` Councilmen Pat Mikulecky August 17, 1984 Page Two Minnesota Cities handbook on the Minnesota government practices act. On page fourteen that book states "Finally, the council should keep in mind the consequences of violating the Open Meeting Law and the Data Practices Act, respectively. The penalty for a single Open Meeting Law violation is a civil penalty of up to $100. The consequences of violating the Data Practices Act include criminal penalties of up to a $500 fine and /or ninety days in prisonment, actual damages to the person whose privacy was invaded, and exemplary damages of up to $10,000. Because of the disparity and penalties, in cases of doubt, it seems far wiser to risk violating the Open Meeting Law rather than to risk violating the Data Practices Act." As you can see, when you deal with information on public employees, there is a potential conflict for the city in trying to abide by requirements of both statutes. I would like to stress that it is not my intention to "cover up" any wrong doing that may or may not have been committed by a city employee. I do feel that given the fact that there is a distinct possibility that the information that was to have been discussed on that evening would be private data it was far wiser not to discuss the information at that time and thereby avoid the risk of the far greater penalties involved in a violation of the Government Practices Act. I would further suggest that if this matter is to be discussed in the future, it be discussed at a closed meeting with the meeting being taped recorded. When any resolution of the matter has been reached, the status and final disposition would be public. This does not mean that the matter must be announced to the public but only that if any member of the public were to inquire concerning the status or final disposition that information should be made available to them. As city attorney; I attempt to offer to the council advice which will minimize both the council, the city and the individual councilmembers exposure to criticism and legal actions. As a council and as individual councilmembers, you are free to follow my advice or to disregard it as you choose. If any councilmember feels strongly that my advice on this matter is in error, I would believe that that councilmen would be free to release the data should-he so desire. In the event that the data released was in fact private data, that councilmen would of course be subject to whatever penalties may be imposed upon an individual for violation of the Government Data Practices Act. Since the action would be taken by the councilman as an individual without council authority or approval, I believe that the city nor the other individual city councilmen would be Councilmen Pat Mikulecky August 17, 1984 Page Three subject to liability. Sincerely yours, SCHAEFER LAW OFFICE J es H. Schaefer Hutchinson City Attorney JHS: dlp i c� Chief Dean O'Borsky Hutchinson Police Department Hutchinson, MN 55350 Dear Chief O')�orsky: COPY from MINNESOTA STATE AUTO ASSOCIATION 7 Travelers Trail Burnsville, Minnesota 55337 August 3, 1984 It is my honor to announce that Hutchinson has received the Pedestrian Safety Citation Award In the American Automobile Association's 45th annual Pedestrian Protection Program. Forty -five cities in Minnesota will receive awards for 1983. This number is up from 40 cities for the year of 1982. The AAA pedestrian program, unique in the nation, focuses attention nationwide on pedestrian safety needs by stimulating interest on the local level in pedestrian related programs. Since 1937, when-AAA began developing the Pedestrian Safety Program, pedestrian fatalities have declined 48 percent even as motor vehicle registrations jumped 459 percent and the nation's population grew by 83 percent. However, pedestrian fatalities account for 16 percent of all highway fatalities and 4 percent of all traffic injuries. Congratulations. This award recognizes your efforts to emphasize this important.area of traffic safety. An AAA representative will contact you to make arrangements for a formal presentation of the award to you and your Mayor. Sincerely, William H. Clapp Chairman of the Board UTIC:sab CC.* Mayor Robert H. Stearns P.O. Box 50 Hutchinson, rid 55350 2