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cp08-10-1982 c-!CI'i ASON CITY AL r,--- N D A R `.!EEK OF August 8...__ O August 14 !yi DK' ESDAY -11- Nole- Transportation Board Meeting at City Hall 2:00 P.M. - Senior Advisory Board Meeting at Senior Center SUNDAY -8- THURSDAY -12- 7:00 A.M. - Special City Co Meeting at City with Lund Assoc MONDAY -9- FRIDAY -13- VACATION: George Field - August 11 -17 TUESDAY -10- 2:00 P.M. - Open Bids on Improv� ment Bonds 4 :00 P.M. - City Council Work- shop at City Hall 7:30 P.M. - City Council Meeting at City Hall SATURDAY -14- ETJ�. AGENDA REGULAR MEETING - HUTCHINSON CITY COUNCIL TUESDAY, AUGUST 10, 1982 /1. Call Meeting to Order - 7:30 P.M. 2. Invocation - Reverend Darrel F. Thalman V3. Consideration of Minutes - Regular Meeting of July 27, 1982 and Special Meeting of August 2, 1982 Action - Motion to approve - Motion to approve as amended ,/4. Public Hearing None 5. Communications, Requests and Petitions f(a) Consideration of Request to Use Library Square on September 9 -11, 1982 for Youth Rally Action - Motion to approve - Motion to reject 6. Resolutions and Ordinances Aa). Ordinance No. 9/82 - An Ordinance Amending Ordinance No. 464, Section 8: Zoning Districts and Zoning Map, R -5 Mobile Home Park Action - Motion to reject - Motion to waive second reading and adopt J(b) Resolution No. 7240 - Resolution of Appreciation - Clinton Tracy Action - Motion to reject - Motion to waive reading and adopt d(c) Resolution No. 7239 - Resolution Setting Election, Time, Place Locations of Precincts, and Appointing of Judges for State Primary Election and State General Election Action - Motion to reject - Motion to waive reading and adopt 7. Reports of Officers, Boards and Commissions J a) Building Official's Monthly Report - July 1982 Action - Order by Mayor received for filing ,/(b) Minutes of Nursing Home Board dated June 17, 1982 Action - Order by Mayor received for filing COUNCIL AGENDA AUGUST 10, 1982 V(c) Minutes of Parks and Recreation Board dated July 7, 1982 Action - Order by Mayor received for filing 8. Unfinished Business /(a) Consideration of Cutting of Fence at 229 Fifth Avenue Northeast (DEFERRED JULY 27, 1982) Action - ✓(b) Consideration of Request for Variance submitted by Linda Peterson with unfavorable recommendation of Planning Commission (DEFERRED JULY 27, 1982) Action - Motion to reject - Motion to approve - Motion to waive reading and adopt Resolution for Variance Ac)—Review of Proposed Layouts for Off- Street Parking at Hassan Street, Third Avenue Southeast and Main Street Surrounding Famith Properties (DEFERRED JULY 27, 1982) Action ✓(d) Consideration of Request for All Downtown Street Lights to Be Turned On Monday and Thursday Evenings (DEFERRED APRIL 13, 1982) Action - /( e) Consideration of Report on Employment by Personnel Coordinator Action - Motion to reject - Motion to accept report ,/(f) Consideration of Issuing Final Payment for Senior Center to Kraus - Anderson Action - Motion to reject - Motion to approve payment 9. New Business ✓(a) Consideration of Application for Cigarette License: 1. Fair Board 2. Masons & Eastern Stars Action - Motion to reject - Motion to approve and issue license(s) -2- v t COUNCIL AGENDA AUGUST 10, 1982 ,/(b) Consideration of Application for Retail "On Sale" Non - Intoxicating Malt Liquor License: 1. Fair Board - August 20- 1982 2. Jaycees - August 14 -15, 1982 Action - Motion to reject - Motion to approve and issue license(s) Ac) Consideration of Temporary Road Sign at Hutchinson Mall Action - ,/(d) Consideration of Sidewalk Renovation Project Action - v/(e) Consideration of Establishing Date to Review Airport Zoning with Airport Zoning Board and Airport Commission Action - J(f) Consideration of "No Parking" Signs at Entrance to Fred Roberts Park Action - Motion to reject - Motion to Post Two "No Parking' Signs /(g) Consideration of Request by John Korngiebel to Discuss Old Armory Architectural Services Action - ✓(h) Consideration of Option Agreement for $100 for Lots 4 & 5.In Block 14, South Half City Action - 10. Miscellaneous J(a) Communications from City Administrator 11. Claims Appropriations and Contract Payments (a) Verified Claims Action - Motion to reject - Motion to approve and authorize payment 12. Adjournment -3- MINUTES REGULAR MEETING - HUTCHINSON CITY COUNCIL TUESDAY, JULY 27, 1982 1. CALL TO ORDER The meeting was called to order by Mayor DeMeyer at 7:30 P.M., with the follow- ing present: Alderman Mike Carls, Alderman John Mlinar, Alderman Kenneth Gruen - hagen and Alderman Ted Beatty, in addition to Mayor James G. DeMeyer. Absent: None. Also present: City Administrator Gary D. Plotz, City Attorney James Schaefer and City Engineer Marlow V. Priebe. 2. INVOCATION The invocation was given by the Reverend Robert Lounsbury. 3. MINUTES The minutes of the Bid Openings of July 8, 1982, July 13, 1982 and July 15, 1982 and Special Meetings of July 9, 1982 and July 15, 1982 were approved as presented on a motion by Alderman Gruenhagen, seconded by Alderman Beatty and unanimously carried. It was pointed out by the Mayor that the minutes of the Regular Meeting of July 13, 1982 reflected a condensed version of the comments regarding the questions submitted to the Dorsey law firm. He, therefore, recommended that the tape re- cordings of the meeting made by the City and Crow River Cable TV be made a part of the record for a two -year time period. Following discussion, the motion was made by Alderman Mlinar to accept the min- utes of the Regular Meeting of July 13, 1982 and to make an addition to the minutes any pertinent documents such as video and tape recordings and /or written communications. Seconded by Alderman Carls, the motion carried unanimously. 4. PUBLIC HEARING - 8:00 P.M. (a) CONSIDERATION OF ISSUANCE OF "ON SALE" INTOXICATING LIQUOR LICENSE TO JIM MCCLURE, OWNER OF LEBISTRO CAFE OF HUTCHINSON, INC. There being no discussion, the motion was made by Alderman Gruenhagen to close the hearing at 8:01 P.M. Seconded by Alderman Beatty, the motion unanimously approved. Alderman Beatty moved that, with favorable recommendation of the Chief of Police, to approve the application and issue an "On Sale" Intoxicating Liq- uor License to Jim McClure for the LeBistro Cafe, pending an opening date for operation. Alderman Mlinar seconded the motion, and it carried unani- mously. W COUNCIL MINUTES JULY 27, 1982 5. COMMUNICATIONS, REQUESTS AND PETITIONS (a) CONSIDERATION OF REQUEST FOR REDUCED TRASH AND REFUSE RATE BY MABEL RANNOW After discussion, it was moved by Alderman Beatty, seconded by Alderman Carls and unanimously carried, to approve a reduced trash and refuse rate for Mabel Rannow. (b) CONSIDERATION OF REQUEST BY HUTCHINSON WRESTLING ASSOCIATION TO USE CIVIC ARENA ON AUGUST 14, 1982 The Hutchinson Wrestling Association requested permission to use the Civic Arena on August 14, 1982 to hold a benefit for Tom Ruzicka who suffered a swimming accident recently. The Association was agreeable to signing a re- lease of liability for the event, and they were to check into liability in- surance. Alderman Gruenhagen made the motion to grant the request for use of the Civic Arena for a benefit. Alderman Beatty seconded the motion, and it carried unanimously. (c) CONSIDERATION OF REQUEST FOR ADDITIONAL STREET LIGHTING AT LYNN'S AUTO SALES BY LYNN GERNAND Mr. Lynn Gernand requested an additional street light at his place of busi- ness, namely Lynn's Auto Sales. He further agreed to pay $75.00 per year for the additional service. Following discussion, the motion was made by Alderman Mlinar, seconded by Alderman Carls and unanimously approved, to approve the request and refer it to Hutchinson Utilities. 6. RESOLUTIONS AND ORDINANCES (a) ORDINANCE NO. 8/82 - AN ORDINANCE AMENDING PARKING ORDINANCE, SECTION 700: 169.34, SUBD. 10 FOR FIRE STATION After discussion, it was moved by Alderman Carls, seconded by Alderman Gruenhagen, to waive the second reading and adopt Ordinance No. 648 entitled An Ordinance Amending Parking Ordinance, Section 700:169.34, Subd. 10 for Fire Station. Motion approved unanimously. 7. REPORTS OF OFFICERS BOARDS AND COMMISSIONS (a) MONTHLY FINANCIAL REPORT - JUNE 1982 There being no discussion, the report was ordered by the Mayor to be re- ceived for filing. -2- • 0 COUNCIL MINUTES JULY 27, 1982 (b) MINUTES OF PLANNING COMMISSION DATED JUNE 15, 1982 There being no discussion, the minutes were ordered by the Mayor to be received for filing. (c) MINUTES OF PARK AND RECREATION BOARD DATED JUNE 9, 1982 There being no discussion, the minutes were ordered by the Mayor to be received for filing. 8. UNFINISHED BUSINESS (a) CONSIDERATION OF DENTAL GROUP INSURANCE POLICY RENEWAL City Administrator Plotz reported that Crown Insurance Company had not in- creased the premium for a renewal with their company. Following discussion, the motion was made by Alderman Gruenhagen, seconded by Alderman Beatty, to approve a dental group insurance policy renewal with Crown Insurance Company, effective August 1, 1982. Motion unanimously ap- proved. (b) CONSIDERATION OF FIRST AVENUE SOUTHWEST, NEMITZ PROPERTY (DEFERRED 7- 13 -82) The Mayor reported that he and the City Engineer had met with the.property owners of Nemitz building. Mr. Benjamin had requested a franchise with the City be drafted for City Council consideration. After discussion, Alderman Gruenhagen moved to defer this subject until the September 14, 1982 City Council meeting. Seconded by Alderman Beatty, the motion carried unanimously. (c) CONSIDERATION OF CHANGE ORDER NO. 3 FOR HUTCHINSON FIRE STATION WITH RECOMMENDATION OF FIRE DEPARTMENT: (DEFERRED JULY 13, 1982) 1. $250 DELETION OF WALL COVERING PLURAL 2. $252.09 ADDITION FOR FIRE SPRINKLER LIGHT AND MOVING TELEPHONE Following discussion, it was moved by Alderman Beatty, seconded by Alder- man Mlinar, to approve Change Order No. 3 for the Hutchinson Fire Station. Motion unanimously approved. (d) CONSIDERATION OF FINAL PAY REQUESTS ON FIRE STATION SUBMITTED BY KORNGIEBEL ARCHITECTS (DEFERRED JULY 13, 1982) -3- COUNCIL MINUTES JULY 27, 1982 Korngiebel Architects submitted a final pay request for the general and electrical contractors for the Fire Station. It was pointed out that their work would be under a one -year warranty. After discussion, Alderman Carls moved to approve the pay request for the general and electrical contractors as submitted by Korngiebel Architects. Alderman Beatty seconded the motion and unanimously approved. (e) DISCUSSION OF THE SALE AND DEVELOPMENT AGREEMENT BETWEEN CITY OF HUTCHINSON AND HUTCHINSON S &L REHAB, LIMITED PARTNERSHIP (REQUESTED BY ALDERMAN MLINAR AND ALDERMAN BEATTY) Extensive discussion was given to the Sale and Development Agreement for the S &L Project and the misunderstanding that resulted from the name of the wrong partnership (ie, Park Square Co.) being inserted under Section 1.08 Developer. It was clarified that the Developer is, in fact, Hutchinson S &L Rehab, with Jim and Dick McClure as limited partners. 9. NEW BUSINESS (a) CONSIDERATION OF APPLICATION BY HUTCHINSON JAYCEES FOR "ON SALE" NON - INTOXICATING MALT LIQUOR LICENSE FOR SOFTBALL TOURNAMENT ON JULY 31 AND AUGUST 1, 1982 Mr. Randy Schultz, President of the Hutchinson Jaycees, requested a 3.2 beer license for a softball tournament. He stated the organization would check all I.D.`s and monitor sales to minors, as well as other conditions listed on their application. After discussion, it was moved by Alderman Carls to approve the application and issue the Malt Liquor License to the Jaycees and to request the Police Chief to file a written report with the City Council following the tourna- ment with a report of any problems. The motion was seconded by Alderman Mlinar and unanimously carried. (b) CONSIDERATION OF REQUEST FOR VARIANCE SUBMITTED BY LINDA PETERSON WITH UNFAVORABLE RECOMMENDATION OF PLANNING COMMISSION Linda Peterson was present and requested the Council to defer action until the Council members could view the site as to what she was proposing to do. Her neighbors to the north and south were both present and expressed no ob- jection to the plan. Also, a third neighbor had telephoned each of the Council members to state he had no objection. Following discussion, the motion was made by Alderman Mlinar to defer ac- tion until the next City Council meeting of August 10, 1982. Seconded by Alderman Beatty, the motion carried unanimously. -4- 0 COUNCIL MINUTES JULY 27, 1982 (c) CONSIDERATION OF REQUEST FOR AMENDMENT TO ZONING ORDINANCE NO. 464 SUBMITTED BY CITY STAFF WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION City Engineer Priebe explained the amendment to the Zoning Ordinance No. 464 was to cover the requirement of tie -downs on mobile homes in accord- ance with state regulations. This particular item was omitted when the previous amendment was made to the zoning ordinance relating to mobile homes. The motion was made by Alderman Beatty to waive the first reading of Or- dinance No. 9/82 entitled An Ordinance Amending Ordinance No. 464, Sec- tion 8: Zoning Districts and Zoning Map, R -5 Mobile Home Park and set the second reading for August 10, 1982. Seconded by Alderman Carls, the mo- tion unanimously carried. (d) CONSIDERATION OF FINAL PLAT FOR WRIGHT ESTATES WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION City Engineer Priebe reported the preliminary plat was approved some time ago, and the final plat is now ready for approval by the County. The plat is within the two -mile radius of the City. After discussion, it was moved by Alderman Gruenhagen, seconded by Alderman Beatty and carried unanimously, to approve the final plat for Wright Es- tates. (e) CONSIDERATION OF PRELIMINARY PLAT FOR PRIEVE ESTATES WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION Mr. Priebe explained the Prieve Estates is located immediately north of the Wright Estates on the west side of Otter Lake. Following discussion, Alderman Gruenhagen moved to approve the preliminary plat for the Prieve Estates. The motion was seconded by Alderman Beatty and unanimously approved. (f) CONSIDERATION OF RE140VAL OF OLD ALLEY ENTRANCE It was reported by the City Engineer that the City has not removed the al- ley entrance panel and replaced the curb on First Avenue Southeast between Jefferson Street and Adams Street subsequent to vacation of the north 132 feet of the alley. A cost estimate in the amount of $340.00 has been re- ceived from Hanson Construction Company to do this work. After discussion, the motion was made by Alderman Mlinar, seconded by -5- COUNCIL MINUTES JULY 27, 1982 Alderman Gruenhagen and carried unanimously, to approve the work being done by Hanson Construction Company to remove the old alley entrance. (g) CONSIDERATION OF REPLACEMENT OF LINE TO WELL NO. 6 AT WATER TREATMENT PLANT Following discussion, the motion was made by Alderman Carls, seconded by Alderman Beatty, to approve the replacement of line to well No. 6 at the water treatment plant. Motion unanimously approved. (h) CONSIDERATION OF HAVTI WORK STUDY AGREEMENT FOR 1982 -83 SCHOOL YEAR It was reported this is an annual hgreement with HAVTI for the City to hire students for part -time work. After discussion, it was moved by Alderman Gruenhagen to approve and enter into a HAVTI Work Study Agreement for 1982 -83. The motion was seconded by Alderman Mlinar and carried unanimously. (i) CONSIDERATION OF CUTTING OF FENCE AT 229 FIFTH AVENUE NORTHEAST Rev. R. S. Crouse appeared before the Council concerning a fence on his property that had been cut. He stated that in October 1981 he was told the fence would have to be moved. Then one day he came home to find the fence had been cut. The City Attorney stated a court order by the District Court had instructed the City to install a fence, which became the property of Lowell Otto, in settlement for certain property given to the City by Mr. Otto. The City had not been responsible for cutting Rev. Crouse's fence, but it had placed stakes in the area. A property line discrepancy becomes a legal matter, and the dispute must be settled among the neighbors. The City has nothing to do with it. Following discussion, Alderman Beatty moved to have the City Engineer re view the property survey and report back to the City Council at the next regular meeting. The motion was seconded by Alderman Mlinar and unanimously carried. (j) REVIEW OF LOAN AGREEMENT FOR S &L PROJECT After considerable discussion, it was the consensus of the Council to hold a special meeting on August 2, 1982 at 7:00 A.M. to discuss items relating to the S &L Project. The motion was made by Alderman Mlinar to schedule a special City Council meeting for August 2, 1982 at 7:00 A.M., with Agenda Items 9 -j. through 9 -o. deferred to this meeting, as well as the Sale and Development Agreement, -6- • COUNCIL MINUTES JULY 27, 1982 Property Option Contract, and Awarding of Bid for $135,000 Tax Increment Financing (G.O. Tax Increment Bonds of 1982). Seconded by Alderman Beatty, the motion carried unanimously. (k) REVIEW OF PLEDGE AGREEMENT FOR S &L PROJECT Deferred to August 2, 1982 Special City Council Meeting. (1) REVIEW OF CONSTRUCTION LOAN AGREEMENT FOR S &L PROJECT Deferred to August 2, 1982 Special City Council Meeting. (m) REVIEW OF COMBINATION MORTGAGE AND SECURITY AGREEMENT AND FIXTURE FINANCING STATEMENT FOR S &L PROJECT Deferred to August 2, 1982 Special City Council Meeting. (n) REVIEW OF ASSIGNMENT OF RENTS AND LEASES Deferred to August 2, 1982 Special City Council Meeting. (o) REVIEW OF FORM OF RESOLUTION Deferred to August 2, 1982 Special City Council Meeting. (p) CONSIDERATION OF CUTTING OF GRASS ON MCLEOD COUNTY FAIR GROUNDS Messrs. Clifford Popp and Wally Vorpahl represented the Fair Board regard- ing the cutting of the grass at the McLeod County Fair Grounds. Mr. Popp reported the Fair Board had been notified the City would no longer cut grass at the Fair Grounds. The Fair Board prepared a report of the bene- fits the City receives from the Fair Grounds being located in Hutchinson. City Attorney Schaefer suggested that perhaps a reciprocal agreement could be worked out between the City and the Fair Board. If it was the consensus of the Council to enter into such an agreement, the City Council could authorize the continued mowing of grass at the Fair Grounds. Alderman Beatty moved to instruct the City Attorney and City Administrator to pursue a reciprocal agreement with the Fair Board similar in nature to that of the National Guard. Seconded by Alderman Mlinar, the motion car- ried unanimously. It was moved by Alderman Mlinar to authorize the City crew to mow grass at the Fair Grounds in the interim before an Agreement can be reached with the Fair Board. The motion was seconded by Alderman Gruenhagen and unani- mously carried. -7- COUNCIL MINUTES JULY 27, 1982 (q) CONSIDERATION OF EHEIM PARK RENOVATION The Parks and Recreation Director requested Council approval to reland- scape Eheim Park. The monies would be available through a Community Ac- tion Benevolence Program. The project would be completed prior to Septem- ber 16, 1982 when the new Little Crow statue will be dedicated. After discussion, the motion was made by Alderman Carls to approve renova- tion of Eheim Park. Seconded by Alderman Mlinar, the motion unanimously approved. (r) CONSIDERATION OF PURCHASE OF BLEACHERS It was requested that approval be granted to purchase four sets of five row bleachers for an approximate cost of $2,800.00 to $3,000.00. Following discussion, Alderman Gruenhagen moved to grant approval to the purchase of bleachers. The motion was seconded by Alderman Mlinar and carried unanimously. (s) REVIEW OF PROPOSED LAYOUTS FOR OFF- STREET PARKING AT HASSAN STREET, THIRD AVENUE SOUTHEAST AND MAIN STREET SURROUNDING THE FAMITH PROPERTIES (REQUESTED BY ALDERMAN MLINAR AND ALDERMAN BEATTY, WITH MR. RICHARD SMITH PRESENT) Alderman Mlinar reported that Mr. Richard Smith had presented a proposal to the Parking Committee at their last meeting. Mr. Smith then displayed his three schemes and stated No. C was favored over the other two. His proposal would increase the parking capacity in the Red Owl block. Alderman Beatty stated a study was being done to determine if the off - street parking funds could be used to assist this project. After discussion, the motion was made by Alderman Gruenhagen to instruct the City Engineer to prepare drawings on the project and report back to the City Council. Seconded by Alderman Mlinar, the motion carried, with Alderman Beatty abstaining from voting. RECESS: A recess was taken at 10:20 P.M. upon motion by Alderman Mlinar, seconded by Alderman Carls and carried unanimously. The Council reconvened at 10:30 P.M. (t) REVIEW OF THE STATUS OF THE PROPOSED OPTIONS FOR OFF- STREET PARKING LOTS (REQUESTED BY ALDERMAN MLINAR AND ALDERMAN BEATTY) The Mayor commented that he and Alderman Gruenhagen had been appointed to work on property options for off - street parking lots. To date the Masonic Temple and First State Federal had been contacted and options will be • -8 COUNCIL MINUTES JULY 27, 1982 prepared for these properties. City Administrator Plotz stated it was the City's intent to hold public hearings on the parking program this summer. Public hearing notices would have to be publishedand the assessment rolls prepared. Prior to this, how- ever, it will be necessary to adopt a specific formula. It was then de- cided to hold a Parking Committee meeting on Friday, July 30, 1982 at 7 :00 A.M. for the purpose of reviewing a formula. It was moved by Alderman Beatty, seconded by Alderman Mlinar, to request the City Engineer to provide drawings and cost estimates for the area of First Avenue Northeast and Washington on Hassan Street.for diagonal park- ing. Motion unanimously carried. (u) REVIEW OF THE STATUS OF THE OFF- STREET PARKING FUND BY CITY ACCOUNTANT City Accountant Merrill reported on the status of the off - street parking fund. It was his recommendation to make a temporary transfer of funds from the Liquor Store Fund to the Off- Street Parking Fund in the amount of $2,333.00. A payment is due on August 1, 1982 for the 1968/70 bonds. Pre- payment could be authorized at any time. Alderman Beatty moved to pre -pay the 1968/70 bond fund from the 1981 bond proceeds. The motion was seconded by Alderman Carls. After discussion, Alderman Beatty moved to amend his motion to be contingent upon an opinion from the Dorsey law firm and the drafting of the appropriate documents. Seconded by Alderman Carls. Upon roll call, the following votes were given: Aldermen Gruenhagen and Mlinar and Mayor DeMeyer voted nay and Aldermen Beatty and Carla voted aye. Motion failed. Alderman Gruenhagen moved to instruct the City Accountant to draft the necessary documents for a $2,333.00 transfer from the Liquor Store Fund to the Off- Street Parking Fund and pay the amount due on August 1, 1982. The motion was seconded by Alderman Mlinar and carried, with Aldermen Carls, Mlinar, Gruenhagen and Beatty voting aye and Mayor DeMeyer voting nay. The City Attorney was instructed to research this matter further. (v) DISCUSSION IN CONNECTION WITH USE OF CITY VEHICLES (REQUESTED BY MAYOR) Mayor DeMeyer expressed concern that some City staff are driving City ve- hicles some distance from town for personal reasons. Following discussion, Alderman Gruenhagen moved to defer this item until the September 14, 1982 City Council meeting. Pfotion seconded by Alderman Beatty. Alderman Gruenhagen amended the motion to request the drivers of City vehicles to justify their actions. Seconded by Alderman Beatty, the motion carried unanimously. COUNCIL MINUTES JULY 27, 1982 (w) DISCUSSION OF PARKING ASSESSMENT PLAN (REQUESTED BY MAYOR) This item was deleted from the Agenda. (x) CONSIDERATION OF DELINQUENT WATER AND SEWER ACCOUNTS There being no one present regarding his /her account, it was moved by Ald- erman Carls to accept the staff recommendation to discontinue service on August 2, 1982 at 12:00 Noon unless otherwise noted, for the following ac- counts: 02- 0125 -0 -00, 02- 0140 -4 -00, 02- 0215 -0 -00, 02- 0280 -1 -00, 02- 0645 -3 -00, 03- 0030 -2 -00, 03- 0340 -2 -00, 03- 0420 -2 -00, 03- 0500 -8 -00, 04- 0920 -1 -00, 05- 0180 -0 -00, 06- 0280 -1 -00, 06- 0470 -1 -00, 06- 0760 -2 -00, 07- 0590 -3 -00, 07- 0860 -0 -00, 07- 0910 -1 -00, 14- 0105 -6 -00, 42- 0070 -1 -00. Seconded by Alder- man Mlinar, the motion carried unanimously. 10. MISCELLANEOUS (a) COMMUNICATIONS FROM CITY ADMINISTRATOR City Administrator Plotz reminded the supervisors that evaluations are to be completed by August 10, 1982. It was determined by Judge Yost that there was no liability to the City for damage to a car caused by poor road conditions on Garden Road. Mr. Plotz informed the Council that August 1, 1982 would be the effective date for the increased refuse rates to go into effect. Junker Sanitation has been informed of the same. Mrs. T. P. Sheppard at 15 Franklin North contacted the City Administrator regarding her property. She would be agreeable to an appraisal of her prop- erty if she could have a life estate. A late request was received for Sgt. Ronald Kirchoff and Police Chief Dean O'Borsky to attend an Annual Criminal Justice Course on August 16 -18, 1982. Permission was asked from the Council. It was moved by Alderman Carls, seconded by Alderman Mlinar, to approve attendance at the above -named course. Motion unanimously approved. (b) COMMUNICATIONS FROM CITY ACCOUNTANT City Accountant Merrill commented on the up- coming fall election. He stated he has several possible locations in mind. (c) COMMUNICATIONS FROM MAINTENANCE OPERATIONS DIRECTOR Director Neumann reported the City received one fill from Conoco, and City Engineer Priebe is working on the situation. 0 -10- • COUNCIL MINUTES JULY 27, 1982 Mr. Neumann stated he had attended a meeting with the Hassan Valley Town- ship prior to the Council meeting. The Township might be willing to give a Conditional Use Permit for each farmer who would have sludge on his land. Permission was requested to move a handicapped sign from in front of Yet - zer's over to Third Avenue. It was moved by Alderman Carls, seconded by Alderman Mlinar, to approve the relocation. Motion unanimously approved. (d) COMMUNICATIONS FROM ALDERMAN GRUENRAGEN Alderman Gruenhagen reported he had a request from a handicapped person who enjoys softball to be allowed to park his vehicle closer to the ball field. (e) COMMUNICATIONS FROM ALDERMAN MLINAR Alderman Mlinar commented about the up- coming meeting of the Old Armory Research Committee on July 29, 1982. First there will be a tour of the Old Armory, and then the Committee will review documents and materials re- lated to the issue. 11. CLAIMS. APPROPRIATIONS AND CONTRACT PAYMENTS (a) VERIFIED CLAIMS The verified claims were approved for payment from the appropriate funds on a motion by Alderman Beatty, seconded by Alderman Gruenhagen, and car- ried unanimously. 12. ADJOURNMENT There being no further business, the meeting adjourned at 12:30 P.M. upon motion by Alderman Beatty, seconded by Alderman Carls and unanimously carried. -11- MINUTES SPECIAL MEETING - HUTCHINSON CITY COUNCIL MONDAY, AUGUST 2, 1982 1. CALL TO ORDER Mayor DeMeyer called the special meeting to order at 7:05 A.M., with the follow- ing present: Alderman Mike Carls, Alderman John Mlinar, Alderman Ken Gruenhagen, Alderman Ted Beatty, and Mayor James G. DeMeyer. Absent: None. Also present: City Administrator Gary D. Plotz, City Engineer Marlow V. Priebe, and City Attorney James Schaefer. (NOTE: Alderman Beatty left at 8:45 A.M. and Alderman Gruenhagen left at 9:40 A.M.) 2. CONSIDERATION OF SALE AND DEVELOPMENT AGREEMENT BETWEEN CITY OF HUTCHINSON AND HUTCHINSON S &L REHAB, LIMITED PARTNERSHIP The Sale and Development Agreement between the City of Hutchinson and Hutchinson S &L Rehab, Limited Partnership was given considerable review, with several changes recommended. The matter of additional security for the difference ($90,000.00) be- tween the purchase price of the property and the sale to Hutchinson S &L Rehab, Lim- ited Partnership was discussed. City Attorney Schaefer pointed out there were two methods that could be used, ie: 1) security mortgage from the developer, or 2) a letter of credit from the developer in the amount of $90,000.00. Either alternative would be acceptable. It was moved by Alderman Mlinar to instruct the City Attorney to prepare an amended copy of the Sale and Development Agreement to be finalized at a special City Council meeting on August 4, 1982 at 7:00 A.M. Seconded by Alderman Gruenhagen, the motion carried unanimously. 3. CONSIDERATION OF PROPERTY OPTION WITH PARK SQUARE CO. This item was deferred at this time. 4. CONSIDERATION OF AWARD OF BID FOR $135,000 TAX INCREMENT FIN G.O. TAX INCREMENT BONDS OF 1982 Mr. Bill Fahey of Ehlers & Associates presented the one bid received from M. H. Novick & Co. on the $135,000 G.O. Tax Increment Bonds of 1982. The question was raised whether the Mayor would, in fact, sign the tax increment bonds. Mayor DeMeyer stated he did not intend to sign any documents until such time as he had received an independent opinion regarding the classification of the tax in- crement district. The City Attorney then pointed out that the signing of bonds and contracts was required under the City Charter to be signed by the Mayor and City Clerk. Signing is administerial in nature and does not indicate whether or not ap- proval was given to the project and /or terms of the project. It only indicates C�' COUNCIL MINUTES AUGUST 2, 1982 a particular matter was duly passed, a quorum was present, and the purpose of the rules were followed. In the event the Mayor declines to sign the bonds and contracts relating to tax increment financing, the only alternative would be to get a court jurisdiction to obtain such signature. It would be up to the court to interpret the City Charter. The Mayor responded he was aware of this procedure, and he would not defy a court order. Attorney Schaefer stated he thought the matter could be resolved within 40 days if it did reach the court level. However, the issue brought before the court would re- late strictly to the Charter provision requiring the Mayor to sign bonds and con- tracts and not include a question on the classification on the tax increment district. The latter issue could not be resolved within a 40 -day timeframe. The sole concern was that a lengthy court case would further delay the S &L project. Developer Jim McClure commented that the City is being offered an opportunity to pro- vide the community with a project that would benefit the downtown as well as outside areas. The issue the Mayor has raised took place two and one -half years ago, but it has delayed the S &L project. It would be delaying the project further if the Mayor did not sign the documents. Considerable time and money have been spent on the proj- ect, and it was his opinion the Mayor had tried to block the project. The solution would be to either resolve the issue now or go to court. The motion was made by Alderman Gruenhagen to waive reading and adopt Resolution No. 7236 entitled Resolution Relating to $135,000 General Obligation Tax Increment Bonds of 1982; Awarding the Sale Thereof. Seconded by Alderman Mlinar. Upon roll call vote, the motion carried with Aldermen Gruenhagen, Carls and Mlinar voting aye and Mayor DeMeyer voting nay. It was moved by Alderman Carls, seconded by Alderman Mlinar, to defer Resolution No. 7237 to the special City Council meeting on August 4, 1982. Motion unanimously ap- proved. RECESS: Upon motion by Alderman Carls, seconded by Alderman Mlinar, the Council took a short recess at 9:40 A.M. Motion unanimously approved. 5. THROUGH 9. The following agreements were reviewed, with minor changes: PLEDGE AGREEMENT, CONSTRUCTION LOAN AGREEMENT, COMBINATION MORTGAGE AND SECURITY AGREEMENT AND FIXTURE FINANCING STATEMENT, LOAN AGREEMENT, and ASSIGNMENT OF RENTS AND LEASES. 10. CONSIDERATION OF FORM OF RESOLUTION Alderman Carls moved to waive reading and adopt Resolution No. 7238 entitled Resolu- tion Relating To An $900,000 Commercial Development Revenue Note (Hutchinson S &L Rehab, Limited Partnership Project); Authorizing the Issuance Thereof Pursuant To Minnesota Statutes, Chapter 474. Seconded by Alderman Mlinar, the motion carried unanimously. -2- r° COUNCIL MINUTES AUGUST 2, 1982 It was noted that Resolution No. 7238 incorporated approval of the agreements men- tioned in Agenda Items No. 5 through 9. 11. DEFERRAL OF AGENDA ITEMS Alderman Mlinar made the motion to defer the remainder of the Agenda items to the August 4, 1982 special meeting. The motion was seconded by the Mayor and carried, with Alderman Mlinar and Mayor DeMeyer voting aye and Alderman Carls voting nay as he would be on vacation. 12. ADJOURNMENT It was moved by Alderman Mlinar to adjourn at 11:50 A.M. Seconded by Alderman Carls, the motion unanimously approved. -3- Dear Sir; We would like to sponsor an outdoor Back -to- School Youth Rally on Sept. 9, 10 & 11, We would like your permission for the use of the Library Square Band Stand on these three nights. A group from the Hopkins Assembly of God called Unity will be sponsoring the music for the three nights of the rally. Junior Bassea is the group leader if you have any questions. (286 -2573) On Thurs. night the 9th, Mark Johnson (Pastor of Cokato Assembly of God) with their young people's group will be sponsoring a special skit called "The Scandal of the Cross." On Friday and Saturday night, Terry Cruise (young evangelists of Assembly of God) will be giving a special challenge for the kids. The young people group of the "Assembly of God in Hutchinson will be sponsoring the rally. The Youth for Christ group in Hutchinson (Pearl Schimmel leader 587 -8286) will be helping promote the rally. We will be asking a couple of other churches help promote it. If you have any questions contact Pastor Albin (587 -2704 or 587 -3807) or myself, Youth Pastor Dan Ried. (587 - 8490) Sincerely yours, r Dan Ried Youth Pastor Assembly of God Hutchinson, Minn. a 0 �6)60 40 WfLREAS, Clinfon Tracy bas serveb f6e Cify well as a member of f6e llfilifies Commission for ffje past fwelve (12) years anb n%ne (9) monf §s anb as a represen- fafive fo f6e Planning Commission; UWREAS, saib Clinfon Tracy qas serveb faifQfully anb biligenfly giving of fjis fime anb falen£s fowarb f6c enric$menf of f6e Cify, NOD,' THEREFORE, BE IT RESOLVED 811 THE CITY COUNCIL OF THE CITY OF MTCHIN50N, MINNE50TA: THAT, beep appreciafion is Fjereby expresseb fo Clinfon Tracy for fjis afore- menfioneb services anb f6e grafifube of Hufe§inson anb f6e cifizens f6ereof is 5 ereby expresseb. Abopfeb by ffje Cify Council W S 10f6 bag of Augusf, 1982. James C2. DeMeger Mayor �(E1 X37 -5151 c a z - y YV C1ri J 0V 37 VVAS,H /NG I ON AVENUE 'NEST HUTCHINSON, MINN. 55350 M E M O R A N D U M DATE: August 10, 1982 --------- - - - - -- TO: Mayor and Council -------------------------- - - - - -- FROM: Ken Merrill, City Accountant SUBJECT: Location of Fall Elections As has been discussed with the "Old Armory" being closed, a new location must be found to hold the elections this year. Cary Plotz and myself have looked at several locations around the community. After talking with several of our election judges and other support considerations, it would be hoped to hold the elections at one location for all precincts. The following buildings have been viewed and comments follow each location: 1. Civic Arena - Due to the ice time requirement, we would not be able to use for the November election. 2. Old Fire Hall - Not large enough to hold all precincts. Would need to construct a second exit to meet code. 3. New Fire Hall - Would require trucks to be left out. Cold weather could be a problem. With gear, outside security could be a problem, also, traffic congestion in event of an emergency. 4. Schools 5 3 Peace Lutheran Church - Due to distance to entrances, parking problems and usage during days of elections, we have ruled out school buildings. - Appears to be large enough; would have to be approved by trustees. Rental $75 plus deposit of $25. New Armory - Adequate space. Rental rate would be approxi- mately $145 each day. Would not charge for set up day before. Could store machines at location between elections. 6 -C, A # RESOLUTION NO. 7239 RESOLUTION SETTING ELECTION, TIDE, PLACE LOCATIONS OF PRECINCTS, AND APPOINTING OF JUDGES FOR STATE PRIMARY ELECTION AND STATE GENERAL ELECTION WHEREAS, Chapter 205, Section 205.03, Subd. 1, of the Laws of Minnesota, states that the governing body of any municipality, by resolution adopted prior to the giving of notice of the election, may designate the time during which the polls shall remain open for the State Primary Election and State General Election. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: 1. That the polls shall be open from 7:00 A.M. to 8:00 P.M. for the State Primary Election of Tuesday, September 14, 1982 and the City Clerk shall give such notice of these election hours as is required by law. 2. That the polls shall be open from 7:00 A.M. to 8:00 P.M. for the State General Election of Tuesday, November 2, 1982, and the City Clerk shall give such notice of these election hours as is required by law. 3. That the following polling places shall be used during the 1982 State Primary Election and the State General Election: All Polling Places Will Be In the 4. That the Election Judges are hereby appointed in accordance with the attached list. Adopted by the City Council this 10th day of August 1982. James G. DeMeyer Mayor Gary D. Plotz City Clerk n Precinct # 1 1. Olga Kern* S34 Bluff 2. Verna Anderson 76S Spruce 3. Julie Flaa 886 Oak 4. Eva Maas 332 Highway 7 East 5. Miriam Miller 18S Arch Precinct # 2 1. Emma Lake* 115 Franklin N. 2. Margaret Sorenson 316 First Ave. NW 3. DeLaine Rolfe 844 Second Ave. SW 4. Lillian Jorgenson 36 Franklin N. 5. Sedona Miller 714 Shady Ridge Road Precinct # 3 1. Doris Daggett* 440 Dale 2. Pat Kuester 1020 Roberts Road 3. Darlene Knigge 674 Harrington 4. Norma Totushek 515 Larson 5. Mary Drahos 405 Fischer Street Precinct # 4 1. Evelyn Odegaard* 446 Main S. 2. Jo Gilhousen 621 Fourth Ave. SW 3. Norma Schepers 305 Pishney Lane 4. Mary Ann Price 445 Franklin 5. Geraldine Johnson 5S8 Juergens Rd. Precinct # 5 1. Mildred Nelson* 316 Hassan 2. Grace Kottke 1028 Jefferson 3. Rose Kadlec 325 Jefferson 4. Rosetta Miller 1115 Jefferson 5. Mary J. Brummond 716 Hassan S. Registration Table 1. Fern Frank* 595 Lynn Road 2. Bernice Erickson 724 Jefferson S. *Denotes Chairperson ,. -- - Z / ® / (612) 587 -5151 CITY OF HU/ CHINSON 37 WASHINGTON AVENUE WEST HUTCHINSON. MINN. 55350 M E M O DATE: August 3, 1982 TO: Mayor and City Council FROM: Building Official RE: July 1982 Building Report Attached is the July 1982 Report of Building Permits Issued and Local Public Construction. There were 2 Demolition Permits, 6 Mobile Home Installation Permits and 59 Building Permits issued, for a total of 67 Permits issued, with a construction evaluation of $1,663,344.00. In addition, there was 1 Curb Cut & Apron Permit, 2 Moving Permits, 5 Sign Permits, and 8 Plumbing Permits issued, for a total of 83 permits issued during the month of July. Homer Pittman Building Official HP /pv attachment 170-- AOL I vl. n° 1. 30 _ Ap ps O'+al Lcrt ll CS h:pe 1964 Fo FY C -404 Period in which " "Eel permits issued JULY 1962 _ ._�.. U.S. ocna�.Tn +.cur of commence PLEASE MAIL ON OR BEFORE THE 4TH DAY OF THE MONTH 6lIS ALL .".� "ice CE ^��L'S (Please correct any errors in m <:Jdress REPORT OF BUILDING OR ZONING PERMITS ISSUED AND LOCAL PUBLIC CONSTRUCTION 61C350G 41 9 9999 085 5 F.1 CE O 2730 CENSUS USE ONLY HO =Ek PITTMAN BLDG OFF CITY HALL 37 WASHINGTON AVE NEST HUTCHIASGN I".N 55350 Has the geographic coverage of this permit system changed during this period? X No , -'! Yes - Explain in comments - If no permits were issued during this I5 Bureau of the Census MAIL 7H I Please read the instructions before period, enter (X) in box and return form ❑ 1201 East Tenth Street COPY T completing form. For further help, Jeffersonville, Ind. 47132 call collect (301) 763 -7244. Section I -NEW RESIDENTIAL HOUSE- PRIVATELY OWNED PUBLICLY OWNED Number Valuation of Number _ Valuation of KEEPING BUILDINGS AND Item MOBILE HOMES Na construction construction Buildings Housing Buildings Housing Its (Omit cents) Its (Omit cents) (a) (b) tc) (d) (e) lf) (g) One- family houses, detached 101 2 2 93,883 One- family houses attached, each unit separated from adjoining unit(s) by a wall that extends from ground to roof 102 1 2 9-4,2-7-5 Two - family buildings 103 Three- and four - family buildings 104 Five -or -more family buildings 105 TOTAL (Sum of 101 -105) 109 3 4 188,158 Mobile homes 112 6 6 - - - - - -- Section II - NEW RESIDENTIAL NON- PRIVATELY OWNED PUBLICLY OWNED Number Valuation of Number Valuation of HOUSEKEEPING Item BUILDINGS No. construction (Omit cents) construction (Omit cents) Buildings Rooms guildin s g Rooms (a) (b) (c) (d) (e) (f) (g) _ Hotels, motels, and tourist cabins intended for transient accommodations 213 Other nonhousekeeping shelter 214 Section III - NEW NONRESIDENTIAL PRIVATELY OWNED PUBLICLY OWNED Number Valuation of BUILDINGS Iteem Number Valuation of - - - construction (Omit cents) Buildings ousmg construction units (Omit cents) Buildings Housing units (a) (b) (c) (d) (e) (f) (g) Amusement and recreational buildings 318 Churches and other religious buildings 319 Industrial buildings 320 1 1_245_737 Parking garages (open to general public) 321 Service stations and repair garages 322 Hospitals and other institutional buildings 323 Office, bank, and professional buildings 324 Public works and utilities buildings 325 Schools and other educational buildings 326 Stores and other mercantile buildings 327 Other nonresidential buildings 328 2 1,100 _ Structures other than buildings 329 11 18,282 I Section IV - ADDITIONS AND ALTERATIONS °c c An increase in the number of housing N= units (in the housing units column, o enter only the number of additional d units) 433 70,000 °m s No change in the number of - - - " housing units 4_34 28 60.43 A N �, C v. °_ A decrease in the number of housing _ - 72 m units (in the housing units column, w - enter only the number of decreased To units) 435 Residential garages and carports Ll 1 (attached and detached) 436 1 5.932 fAll other buildings and structures 437 1 10 62,604 _ 2 I 10.4nn 67 - $1,663,344.00 PLEASE CONTINUE ON REVERSE SIDE r-1 Section V — CONVERSIONS PRIVATE LY OWNED � _______ PUBLICLY OWNED _ Number Valuation of Number Valuation of -'^ Item — Buildings Housing units Buildings Hour rig units No' construction (Omit cents) construction (Omit cents) (a) (b) (c) (d) (e) (f) (g) Nonresidential and nonhousekeeping buildings to housekeeping buildings 540 Housekeeping buildings to nonresidential and nonhousekeeping buildings 541 Section VI — DEMOLITIONS AND RAZING OF BUILDINGS One- family buildings attached and detached 645 Two - family buildings 646 Three- and four - family buildings 647 Five -or -more family buildings 648 All other buildings and structures 649 2 - Section ADDITIONAL INFORMATION FOR INDIVIDUAL PERMITS OF $500,000 OR MORE Please provide in the space below, additional information for each individual permit valued at $500,000 or more entered in sections I through V. Itfr�fmJO. _ Name and address of Ownership Valuation of Number of Number Sec. Description owner or builder Mark (XJ construction housing of I —V one (Omit cents) units buildings (a) (b) (c) (d) (e) (f) (g) Kind of building ❑ Private Site address ❑ Public E Kind of building ❑ Private ____--------------- Site address ❑ Public Kind of building ❑ Private --------------- -- --- Site address ❑ Public Kind of building ❑ Private Site address ❑ Public Kind of building — ❑ Private Site address ❑ Public Kind of building _________ ________ ❑Private Site address ❑ Public Kind of building _______ _________ _______ ❑Private Site address _ ❑ Public Kind of building ❑ Private Site address ❑ Public Kind of building _____ __________________ ❑Private ________ ___ _______ __ Site address _ _ _ _ _ _ _ _ _ _ ❑ Public Comments 329 — $2,700 — Driveway; $776.00 — Fence; $300.00 — Driveway; $1,200.00— Driveway $1,106.00 — Parking Lot; $1,600.00 — Driveway & Garage Slab; $1,500.00 — Patio Slab; $700.00 — Driveway; $1,500.00 — Driveway; $500.00 — Fence; and $6,400.00 — Swimming Pool. Name of person to contact regarding this report Telephone Area code Number Extension Romer Pittman Title Building Official 612 587 -5151 2 FORM C -10I F-R? T t .r� BUR;4o MANOR MUNICIPAL NTURSING H(Yfx; `;inutes - June .,992 The Board of Directors for B :r, ^.s -anor ::unicipal N,:rsin;- i:ome r et Thzrs6a.,i, June 17, at Burns I?anor, 12:00 noon, President Leslie Lindcr presiding. All members were present except Mike Carls and Keith Duehn. A motion was made by Esther Kuehl and seconded by Larry Graf to accept the minutes as read. Notion carried. A motion was made by Eldred filler and seconded by Gloria Dansereau to pay the bills as presehted, a copy of which is attached to the minutes on file and made a part thereof. Motion carried. avid Jensen, Financial Advisor save the financial report. The new ;'edicare rate is 847.75 which was effective May 28, 1982. Retroactive payments for period ending 12 -31 -82 was 82,066.00; payment for period ending 12 -31 -82 was 36,228.00. A letter from City Attorney, Jim Schaefer concerning Case # 409 was read. A motion was made by Larry Graf and seconded by Esther Kue': ;o pay the bond interest payment to the City of Hutchinson in the amount' of 311,205.00, notion carried. A joint meetinh of the Hospital board and the Burns i:anor boarz. will be held June 23, 1982, at 7:30 P.M., at the Hospital Conference room. The firm of Patch, Erickson, 11adson & Hanson, Inc. will be con- tacted concerning; ideas for energy efficient savings for the north building entrances. � 0 Page 2 June Minutes 1982 Provisions of the Burns :'anor Trust was discussed. The Kiwanee M2519 and ;'iwanee 1;8543 boiler inspection of June 4, 1982 found that the maintence staff are to be co;amended on the condition of the boilers. The boilers were installed in 1964 and 1968. The average life of a boiler is 20 years. It would be wise to have money in the savings account for replacements, since that large amount of money is not readily available. An increase in the Welfare per diem rate will be necessary to provide over the counter drugs to the patients. There being no further business, a motion was made by Eldred ;biller and seconded by Gloria Dansereau, meeting adjourned. J %otion carried. The Burns Manor Board of Directors will meet Thursday, July 22, 1982 at noon. ATTEST: Respectfully submitted; 1,avi J. Gei , Secretary Leslie Linder, President 0 MINUTES 16parks & Recreation Advisory Bnard July 7, 1982 Members Present: Roy Johnsen, Mike Carls, Kathy McGraw and Don Falconer. Also present were Bruce Ericson; Parks & Recreation Director, Mary Haugen; Civic Arena Coordinator, John McRaith; Recreation Super- visor, Marilyn Ward, and Gary Plotz. Guests: Hutchinson Hockey Association Members, Bob Amiot; President, Dan Dooley; Vice President, Gary Olson; Treasurer, and Lyle Block. The Minutes The minutes were read, and a motion was made by Don Falconer to approve them, Kathy McGraw seconded the motion. Hockey Rates Bob Amiott stated an hourly hockey rate at the arena for this year was agreed upon, $19 /hr. but that they would like some idea of a "target goal rate" for the future. This would enable the arena to eventually break even, and stop losing money on hoc- key rental. By establishing a set gradual increase in their rates, the Hockey Association would be prepared for the rise and could budget accordingly. Mary Haugen stated they would like to get half the prime time rate, which is $50 /hr.- the last two years the rate was only $16 /hr. and the arena is really losing money due to electric bills during ice season. Changing the date of ice installation was considered to reduce costs of electricity during warm months i.e. last October costs were $6,000. The Association say they need the ice by October 24th, since they have clinics before their regular season starts on November 7th. They have weighed costs versus practice time, and decided the practice time was more important, so they are willing to pay. Lyle Block requested a break down of last year's revenue & costs at the arena, which Gary Plot supplied, listing: Account $45,141 18,035 41,599 7,608 $112,383 Expenses Personal Services Supplies Other Services Capital Outlay Revenue was $69,060. Leaving a deficit of approximately $43,000. Lyle Block commented on the good job being done in using the arena for so many activities, helping to reduce the expenses. Mike Carls questioned the use of volunteers at the arena to cut costs. Mary Haugen said that rather than increasing volunteer use, it has become necessary to cut back volunteers in the concessions, due to problems in that area. The Hockey Association supplied volunteers in the past, but they're dificult to get, and the same people always end up working. Bob Amiott stated that he felt past concession stand problems would be cleared up by use of less volunteers and that in recent meetings with Mary they had solved other problems in that area. 7 f, Minutes Parks & Recreation Board July 7, 1982 Page two Association and Future Concerts Bob Amiott stated that the Hockey Association would like to have some involvement in future concerts at the arean. They would also like to have "some say" as to who the performing artists would be, and would require sufficient time in advance to raise backing money. The OakRidge Boys concert was a good money maker for them, and with increasing expenses, they can use the additional revenue. They would also require specifics on ticket sales in order to assess progress. The association is considering the possibility of assigning one person to concert negotiations; making it easier to work with Bruce and Mary in concert dealings. Bruce suggested that if the Hockey Association had a strong feeling that a particular concert should be held they could let hime know and he would track them down. Park Ranger Program The Park Ranger Program was agreed upon unanimously by the board, and Mike Carls suggested bringing it up to the City Council for final approval. Kathy McGraw made a motion to recommend the program to the council, Roy Johnsen seconded the motion. Junker Sanitation Junket Sanitation will begin picking up in the parks by Friday of this week. They have painted and cut down 55 gallon barrels with chained on covers, and these bar- rels will be emptied three times per week. Roberts Park Special Events The Hockey Association has requested use of Roberts Park for a ball game versus the North Stars. The association wants exclusive use of the park on that day, and Jim Waldron has gotten the okay from the teams scheduled there on that day to move their games. Bruce questioned the board as to whether the rental fee for the park should be waived for them. Kathy McGraw said she didn't think the fees should be waived, as that tends to "snowball ". Other board members agreed. Weed Survey Another weed survey will be done soon, the second of the summer. Bruce stated that the Park Department is still cutting the airport, but not the fairgrounds. Roy Johnsen asked why the park crew was mowing the airport, as it had been referred to the Airport Board at a past meeting. Bruce said he would check into the situation, and Kathy McGraw recommended notifying the Airport Board that the park crew will stop mowing. Gary Plotz stated that the city is not to mow any property, other than that owned by the city. Adjournment Mike Carts made a motion to adjourn at 5:15 p.m. and Kathy McGraw seconded the motion. • i (612) 587 -5151 CITY OF HUTCHINSON 37 WASHINGTON AVENUE WEST HUTCHINSON, MINN. 55350 M E M O DATE: July 30, 1982 TO: Mayor and City Council FROM: Director of Engineering RE: Survey Line - City, Lowell Otto & Rev. Crouse I have researched the data and findings, as requested. From said research, I hereby submit the following: 1. Property description for Rev. Crouse is the East Half of Lot 9 and West 1 Rod of Lot 10, Block 3, North Half City. 2. Property corners found for basis of survey included the Northeast and Southeast corner of Lot 9 and the Southwest Corner of the East Half of Lot 9. 3. Only the Northwest corner of said East Half of Lot 9 was set to establish the above - referanced survey line. Based on the monumentation found in the area, I find no justification to alter the survey line as set. Fences do not establish property lines, only lines of occupation. Any deviation of occupancy lines and property lines must be resolved by legal action. A surveyor does not have that authority. A point of information which had no bearing on the survey, but did clarify to us the reason for the location of the fence was as follows: Mr. Lowell Otto informed a member of the survey crew that he and the former owner of the property Rev. Crouse owns, were aware for many years that the fence was west of the actual property line. Marlow V. Priebe Director of Engineering MVP /pv cc: Rev. Crouse �� f r J (612) 879 -2311 ,.�2345s> CITY OF NFLITCHINSON 0) rf 37 WASHINGTON AVENUE WEST �rAU 82 0 HUTCHlNSON, MINN. 55350 °, gy August 4, 1982 Mr. Gary Plotz City Clerk City Hall Hutchinson, MN 55350 For Distribution to Council Members Our File No. 78 -H -558 Dear Gary: In light of the discussion at the July 27th council meeting, I am taking the opportunity to review the dispute concerning the property line on Rev. Raymond Crouse's property. On November 17, 1978, District Court Judge Martin Mansur entered his Findings, Order and Judgment in the case of Lowell D. Otto vs. City of Hutchinson. I am enclosing a copy of his Findings and Order for your inspection. Please note paragraph 3 of Judge Mansur's Findings which states the City shall "erect a fence not to exceed 5 feet in height on the south line of the property acquired by the City which would border the north line of the property remain- ing in the ownership of Lowell Otto. Paragraph 1 of Judge Mansur's Order orders that Mr. Otto's claims be settled "in accordance with the provisions set forth in the Findings herein." The Findings and the Order thereby required the City to erect a fence between the City and the Otto property in accordance with the legal description pro- vided in the Order. The Order also required Mr. Otto to give the City of Hutchinson a Quit Claim Deed for the property in question. In compliance with the Order, Mr. Otto conveyed the pro- perty to the City of Hutchinson; the City of Hutchinson erected a fence; and the City of Hutchinson filed a Satisfaction of Judgment and release of the lien on Mr. Otto's property. The City on October 6, 1981, entered into an Agreement signed by Mr. Otto and Ralph Westlund concerning the construction of said fence, a copy of which is enclosed. You will note that the Agreement provided that upon the construction of said fence, Lowell Otto agreed to assume all responsibility for repair and maintenance of the fence. F — a- ' August 4, 1982 Mr. Gary Plotz Page 2 After the erection of the fence, I had a telephone conversation with Mr. Mark Carrigan, attorney for Rev. Crouse. Mr. Carrigan followed this conversation up with a letter dated 5 December, 1981, a copy of which is enclosed. As you can see by examination of the letter, Rev. Crouse indicated that there was a property line dispute based upon a claim of Adverse Pos- session. I responded on December 9, 1981. It was my main con- tention that the City place the fence in accordance with the Order of the District Court and that if there was a boundary dispute, the dispute was between Mr. Otto, Rev. Crouse, and the current owners of the property. Since the property was conveyed to the City by a quit claim process and sold to the current landowners by Quit Claim Deed, the individual purchasers took the property subject to any claims against the property or clouds on the title and that since the City had divested itself of all interest in the property, it was not a proper party to any claims of Adverse Possession. Hopefully this will clarify the City's position and inform you of the actions the City has taken on this matter to date. The City, of course, has no knowledge of any cutting of the existing fence. I should also point out that upon such time as a claim of Adverse Possession is adjudicated, the City in practicality could only rely upon the legal description as properly recorded with the County Recorder. JHS:sr Encl. V Sincerely yours, James H. Schaefer City Attorney • • 0 A G R E E M E N T 0 1. IT IS HEREBY AGREED by and between Lowell D. Otto and the City of Hutchinson that the City of Hutchinson shall erect a chain link fence not to exceed five (5) feet in height on the north line of the property owned by Lowell D. Otto bordering on the property legally described in Paragraph 1 of the Findings of Judge Martin J. Mansur issued in the case of Lowell D. Otto vs. the City of Hutchinson. Prior to the construction of said fence the City of Hutchinson shall cause to be made a survey determining the exact location of the pro- perty line previously mentioned. Upon the construction of said fence, Lowell D. Otto hereby agrees to assume all responsibility for repair and maintenance of said fence. 2. IT IS HEREBY AGREED by and between Lowell D. Otto and the City of Hutchinson that the terms and provisions of this agreement constitute a full and complete satisfaction of Paragraph 3 of the Findings above mentioned. CITY OF HUTCHINSON DATED: October 6. 1981 Ralph D. Festlund, Mayor 7 Gary'D. otz, City Clerk Lowell D. Otto ,`111 (I LICE Rn.... PIPESTONE. MINNESOTA 56164 5 December, 1981 James Schaeffer Assist City Attorney Hutchinson, MN 55350 RE: REV. RAYMOND AND ROSEMARY CROUSE WILLIAM R SCOTT MARK CAPNIGAN PARK Pl A OFFICES • 7 1 SI.TN STREET 5. E. 501 / «S -SAYS Dear Jim: In our last conversation you indicated that the City of Hutchinson was in the process of erecting a fence in accordance with a Stipulated agreement with a certain individual which required the erection of that fence. You also indicated that the property was surveyed however, I have learned that the property has been staked and by such staking it appears that there maybe some infringement upon the property rights of my clients. This infringement would be based upon my client's assertion that they have gained title to certain portions of that property by - viture of the doctrine of Adverse Possession. It seems that the fence that the City is in the process of erecting will infringe anywhere from two to four feet upon the property of my client. Our claim to adverse possession is based upon the fact that an "old fence" had been or is located on the property which establishes a different property line and which has been in existence for perhaps as long as 40 years. I hope that you can review this matter carefully so that the fence is not erected improperly and so that we can take care of this problem before it becomes more serious. Thanks for your attention. Sincerely, > FTI.F. OF MI:TlL_OTA CO. "ITY OF i1=L-=D NOV 2 2 !978 • DISTRICT COURT FIRST JUDICIAL DISTRICT File i::). 16043 moo: :•ill D. Oto, Plaintiff, FINDINGS, ORDER VF. ID JUDGNENT of 9utchi ^son, Defen3art. -------------------------------------------------- - - - - -- on October 31, 197x, The above- entitled natter care on for .haring /on motion of the Defendant ?or Findings and Or- °r for Ju5gm_nt to conform to t.ie terms Of the settled case and for such other relief as rav b3 de_mea appropriate. T_!e r-avant appeared through its counsel, Curtas Vii. �iranzora, azz.z �_,c --- ar,-,?are7 Iil Oerszn and wit.l counsel, ;4- -c ael A. Fahey, $squire. FF_CT: TSlis lal9 3Slt involves a clain by the Plaintiff that :10 su_ tamed a lo-=s Of certain personal .)ropa.rty t.lat he clams ii3S s.orod 1.1 a -c:3 around'. a 6truct`]re (vacant nouse) on a tract of 1ana Owned 11! he Plal!it--ff an= l-atlin the corporate l_ s it _l s Of the City Of 1!utucinson- T - -s _t=- -attire was coniemned ti the Cit_7 aul, pur =uant to its S_a=> Tory au: - ority a!h3 the c -rd°-_ Of this Court, the City did e!-a 1o115_7 the Structure. On O,tolier 27th, 1373, at. t=ie Court_1D' :S-, Glencoe, ili:1:leE -0ta, ,)3rt`es were present, the j` =•-_.; na-el was nr3sent, and P.IOr .l ,:rac-:eainu to the S°_1•scti0^ Of a _v ^.= the subamitt -;-19 to it '_.le isruoz -.*a-- se:j by `- = Pla1 !• = -f- ' a c07+ ?l?!1_lt, aXtea 3ive p :e -_rial sett -=n3nt negotiation= x' =e coa =act =? l+etwa• =n tic =�_es :.st :-e-I tie c. of zi�u =ox_ st >_l_ 8:45 P.m. and 11:45 -•., at w h =hic ti7h3 the Court was infornad a settl ement his been 1!! opzn Court dl's or, une record, V_ °._:l t_le parties and re ✓ ^`C- -'ie counsel Ur ^men._, z)1-ca of record an:] the pl aintlif made a'7_11t1onal .- _7,a -,.4As u- -)O --! =he )2=L:23an` -a: after e�:tc 1sive -5n. open Court 3.T-i3 L `� L L- • L- = 1 ic` _''eco=_., .1`rC core- rG):9?-sc, 2. and "- '- - -e.-' _ 20'vJ F _•am t_:e foregoinq Facts, the file. and proce•e3 i ngs 'sere -ofere .. e Court ?3NDS City of ::u`czirson on or L=-fore October 31st, 1978, was to Pay the sum, of $1,000.00 D. Otto __a return for a deea _`rom Lowell D. Otto co-ta_r_i-2a t1le legal c -.scription as follo:Is: The Vo= -h 75 iea_ of t:_e North 20' fees of ^.e :lest Half of Lot 9; and he No. t:2 ; 3 = c,f the 'r:or _-h 200 `eet of Lot 3, <b fee= 'Hereof, all in Bloc:: 3, Toy.* :__' e of I:Lt C�21'tSO� North Half, accor• In 3 -o L_!e Mal? Or Plat t::ereof on file and of record t :a Off ice of t:2.? Jeai seer of Deeds i_-2 a:-.c5 for =noi County, ni .•_:esota. 2. Prior to and ap to C,ctob-r 31s =, I978, Lox;,! :j. O LO had }:»e right to salvage any an!2 all �:i:'_'is 1:1 t- fore o+ 1,00ci from t ,e property a:)ove a' property adjo - r- i•q '-- -- :e a?ov:a 6--scribe -1 p owns and - '-a will retair: ouners_2 =T1 of. lei = Oft ts2t? .rope =-1 i_. tale :o- of woo: after nct--h- =r 3? - =' -:, 1700, ::•ou:3 be :l 2a-_ed by t::c -Cit1T of zlutc .i nson. - 3. - T-hat third pile of de=�!-_s on ?rc?�_ __� o:: *ae•3 '1 -.:all Otte obici cr_nd aal charues. ORDER; 1. T?rat the Plaintiff's clai be, and the sang is hereby' settled in accordance with the nrovisions set forth in tale Fi^3.1ags herei=:. 2. That- the Plaintiff shall, within 30 days of t:e date of tills - Or5er, convey to the City Jf :rutc_^.inson the tract of land iv ina acquired b_!. the City as part of the settlement and legally iazcribed as follows: The North 73 feet of the North 200 feet of the • -;est iialf of !,--t 9; and the Norti2 75 feet of the _3ort`_r 200 feet of Lo. B, except the Nest 66 feet t'rereof, all in Block 3, Tow site of liutciinson, ;Tort^. Half, according to the raan or plat thereof on file and of record in the office of the Register of Deeds in ar_=. for ..cL eod County, iIinn-esota. '_'he xaard of this tract of land to ?he Cat, of Hutchinson shall confirmed ;n• t_re aparo ria:e qL_ -lain deed from tho Plainci`f a t:ra Defar±d >-` l +� li 30 ''.r,yS after .2- .1w - J` this Order. Tit ^^ option of tae Defenia 2_, acid ::;a_e ca __le Defendant may be r_oaFirme3 by r:cord-ation of a c_r'c_.:ca CO? Of this Order __.3�a ^. aa7311 ^a'v •2 `':° �FieJt of d-vf- _�. '•:h8 Plaintiff Of h15 _..,_res- 1n. an0 to said raal ustat an ?1 :1.9 4-1tle 1 -1 tia2 n3 17C 3. ^Sint t:'.2 D�.-.fanaanl anal'.. .13P2 =ilt]ylrlent 1I2 accoz3a_rce the p .o . _,. i - of th.. r: i. nz .-^ems her;ain ri,a13. lox =::•7 :T.iem0r3i.']:L " ":? -c i l`^fal 3. COrl�Or3t °� T� -�i r:fertilcc. _:"sP D: :hover -linr 17_h, 1975. -3- BY TER COURT' :anti-. ✓y/i 51rr. r.tlge a. DiAtriat Court 4. I_r to -one =, tima 3'd'_tion the a7Gr. --m -_ :t at such a= Lowell Ot _o ; ac=avea :-Ie 51,�1'� `_ :n: ^_x_ceitec the eee3, t'na Citv of 7'.n_,:iirson ?;o�'_ci - atis°_ a - ren=:irn lien in - :xc.ss cri $5,003.00 a- ain.st -'re uro?, =r =y oum a,; b_ Lowell Otto. 5. T ov =1l n Lerrrs c= ;e an_ee- :a= t, also '.rav_e? rig:r_ to 3 sa. av trial regar:�i ^g the __'_� cr_nd aal charues. ORDER; 1. T?rat the Plaintiff's clai be, and the sang is hereby' settled in accordance with the nrovisions set forth in tale Fi^3.1ags herei=:. 2. That- the Plaintiff shall, within 30 days of t:e date of tills - Or5er, convey to the City Jf :rutc_^.inson the tract of land iv ina acquired b_!. the City as part of the settlement and legally iazcribed as follows: The North 73 feet of the North 200 feet of the • -;est iialf of !,--t 9; and the Norti2 75 feet of the _3ort`_r 200 feet of Lo. B, except the Nest 66 feet t'rereof, all in Block 3, Tow site of liutciinson, ;Tort^. Half, according to the raan or plat thereof on file and of record in the office of the Register of Deeds in ar_=. for ..cL eod County, iIinn-esota. '_'he xaard of this tract of land to ?he Cat, of Hutchinson shall confirmed ;n• t_re aparo ria:e qL_ -lain deed from tho Plainci`f a t:ra Defar±d >-` l +� li 30 ''.r,yS after .2- .1w - J` this Order. Tit ^^ option of tae Defenia 2_, acid ::;a_e ca __le Defendant may be r_oaFirme3 by r:cord-ation of a c_r'c_.:ca CO? Of this Order __.3�a ^. aa7311 ^a'v •2 `':° �FieJt of d-vf- _�. '•:h8 Plaintiff Of h15 _..,_res- 1n. an0 to said raal ustat an ?1 :1.9 4-1tle 1 -1 tia2 n3 17C 3. ^Sint t:'.2 D�.-.fanaanl anal'.. .13P2 =ilt]ylrlent 1I2 accoz3a_rce the p .o . _,. i - of th.. r: i. nz .-^ems her;ain ri,a13. lox =::•7 :T.iem0r3i.']:L " ":? -c i l`^fal 3. COrl�Or3t °� T� -�i r:fertilcc. _:"sP D: :hover -linr 17_h, 1975. -3- BY TER COURT' :anti-. ✓y/i 51rr. r.tlge a. DiAtriat Court I Tha issue r°_ =sad b t7c Plain -iff's -Ot_on is Gaethe t.ls settlement a3reeme_lt conntltut °_l onl a, peel im -ary negotiations an-! was t :creiore not bin:an y^ and v.het!'. °_'- t'iF _et`_lenent aoree-nent is ::'i v:.1:i the statute- of frauds and uncnforce3blc in that Vne Dgreemant :-:as not Sion-_' by Plaintiff. The eowar of the trial court to enter J 4cr,t!nt enforcing 3 'settlement 3 ^• "'�° ° :. t'° i i]t faV g y_ eemi nt has it-; has_S L`ol1C:• Orlhy settlement of claims t:it%OIIt reco -,r32 to IitiGdt +v i. ;teller y. i•o?f 239 Minn 397, 58 'R ?23 S ?l (1953; Jallen v. A: ;re 264 Ainn 369, 119. 17-.12d 739 (1963). Plaintiff's cl=_i -.that the settlement constituted only preliminary negotiations is wholly inconsistent with the record made on 5erte:r2>er 27th, 1978. Plaintiff was Present . -Yith his attorney when the terms of tiha.. settlement were stated in court and on the record. It was clear to the Court then and it remains clear that the agreement or the parties was meant to constitute a full, final and complete settlement of all the issues raised by the Plaintiff's complaint. Additionally, the settlement disr.ases of the cri-liral proceeding pending against the Defendant by reason of the complaint of the Defendant regarding tie maintenance of d0bris in violation of the Hutchinson City Ordinance. in Jallen, supra, at 337, file Court states: "That a definite settlement of a lawsuit, under our decisions, will be enforced, abisent fraud or collusion,- mistake, or such an improvident agreement that it ought not to stand in equity and good conscience." In the present case, tie Plaintiff was represented by =onpetent counsel throughout t ;le proceedings and the terms of file agreement were revealed in ope.- court anti on the record with =:he Plaintiff Present. P.d3itio nally, the plaintiff, as no te3 '_ 1 _.lE Findings, made further dema nd3 which were compromised a-ma settled in open court and on the record. The following languaga Rogalla v. Rubbelk3 2661 Minn 381,333; 112 ' +:2d 531, 583 (195?) is particularly appropriate: the terms were enhouncec to the Court and taken door, by the reporter, with full protection Of Plaintiff's rights . it s aems to us under the record - -era, where no fraud or bad faith is s?hch.'n, t a:. if :e s- =re to allow a settle:ent glade in open court to be reopened many months late: at t: ^e whim of either party, it create uncertainty, chaos, and confusion as to the effect of settlements in future cases. Tads would be an injustice both to the courts in ::=1i.;1 settlerentz were made, and to file 13t1Raat5 ln- %rOlvcd, !'ill^ g3cDo .d On the relia'.hilit }' of suc - 5e':'= 1:t!5ants_ " The coc_c .-o:1ld be was_inq its ti^Ix by uroian artier in 2 la• - :' suit to ar. :te to a s t`.3emsr.'_ if - t ar Party could, late request that pis _ttorne•_ :pit :ilr31: fro;. '_::? :natter anu cleira tnat the settlem2 nt constituted ' :, ^_r^lY ..raiZr..1rJ nego'_iat1=3 -° Plaintiff's inteCt vas C13t toe `a =S e.hOUl't O-11y b.°. Freliniinary :eetOt1dt10_n.5 tc, 2: more definite 3gr-n.."nont. *le or This cOUnsel S `IOEt?$ _^.avC no ztatel he`- r•e t-- Coa-t _n:l On the record ants, that case, t3he Court would ' -ava struck t_!e preliminary ..e:►o=iatio :tni L4 ;reca.s3 tn_ :patter proca3d forthwith L:1d S : :t`m_tte:3 tai issuea raised :) }' the co.-l%*J lit!t to the jury. -4- 0 9 i . • 9 � Plaintiff also arc_uci; _'.13_, because the settlement __cluaed an 3greeinenit''',,t,1'?'.. P1a&iit` ; :•loul'! .a.? -d the nOr— 7 75 feet of ._1s ^ronerty t0 t:le ' 1 =^ re: mi=l for $1,00).01), _..e se_tle 'nt i= 411_r`i is - ' =ae 5 =r17. ` =`e of fra-. C5S .lilf3 is unenforceable 'n_— ause t--r? was no 51q :ied by t^e Plaintiff. If setti c -lent ha'j --ot b °_$n. :`rought before the I o_r_ and DL'- O''_ tP ^ -= r2COZ(.`, Plaiatlffr5 ci3i. ^ -I foul_ ter_: ..owaver, .iC_`e the :•3S 1 :Oart VI'a _11.'-. �07nsel w':en the set'_le. a7': e° nt:a. war r* t0 tale Court and rd JO_'je3 hj _:i.'. r('_C)7rto i' 2'1:. P:3 i3L:.f 51711_' not be dill° to 17n 311 :1V2C. i:0 1:5e i_:e sta j_, _e oI ._B 1J5 .a 5:].... an 1neC11table -.or i •l to n i l -c i et' i ernent I_1 Po.esvia 1 -Z.. 5 t3 nVa11..a �._ 2.. _ OLrt 5.. _.._......__ L. v. 7u lholrn 259 Minn 125, :Oj NW2,-1 272 j1 °-^), the Co'•rt aeld ..:a_ tae staHate of frauds Toes nct prevent -.le aoDlicatlOC. of t %e doctrine of equitable estolnei. 33-_-3, __ie Plaintiff, ._avian agree3 i n Court a-r! on the record as .o the terms of the ga ttl ement, he i3 estopped from claiming the Settl2m ° -at 1S , une=nforceable under the statute of frauds. ansur, J. .. STATE OF MINNESOTA as :ounty of McLeod I. the undersigned deck of the olatrtd court In and .: said county and state, which fa a court of record. » hueby certify: That I have oorrtp" ft forego- -ng copy with the original on flle In my office and that .he same Is a true and correct copy of Said original and of the whols thersol. VATNFS'S my hand and the Baal of s}id court this z ,JJ -5- (612) 587 -5151 37 WASHINGTON AVENUE Vv EST HUTCHINSON. MINN. 55350 M E M 0 DATE: August 6, 1982 TO: Mayor and City Council FROM: Director of Engineering RE: Cost Estimate - On Street Parking Franklin Street, Hassan Street & Main Street Proposed ON-STREET PARKING on the East side of Franklin Street from 2nd Ave. S.W. to 60' South of 3rd Ave. S.W.: Curb Removal - 160 ft. @ $2.00 = $ 320.00 Remove Blacktop - 1,050 sq.ft. @ $0.40 = 420.00 Common Excavation - 400 cu.yds. @ $3.50 = 1,400.00 Gravel Base - 240 cu.yds. @ $6.00 = 1,440.00 Dust Coat - 600 sq.yds. @ $1.00 = 600.00 Seal Coat - 600 sq.yds. @ $3.20 = 1,920.00 Bumper Curb - 405 ft. @ $6.00 = 2,430.00 Hydrant Relocation - Lump Sum = 700.00 Catch Basin Adjustments & Grate Replacement = 1,000.00 Total Construction Cost --------------------- = $10,230.00 City Cost(administration, engineering & capitalized interest) ------------- = 3,069.00 Total Estimated Cost ------------------------ = $13,299.00 Proposed ON- STREET PARKING on both sides of Hassan Street from Washington Ave. to 1st Ave. N.E.: Curb Removal - 350 ft. @ $2.00' _ $ 700.00 Common Excavation - 500 cu.yds. @ $3.50 = 1,750.00 Gravel Base - 300 cu.yds. @ $6.00 = 1,800.00 Dust Coat - 900 sq.yds. @ $1.00 = 900.00 Seal Coat - 900 sq.yds. @ $3.20 = 2,880.00 Bumper Curb - 540 ft. @ $6.00 = 3,240.00 Tree Removal - 2 @ $200.00 = 400.00 Total Construction Cost --------------------- = $11,670.00 City Cost(administration, engineering & capitalized interest) ------------- = 3,501.00 Total Estimated Cost ------------------------ = $15,171.00 0— , Mayor and City Council Cost Estimate - On- Street Parking August 6, 1982 Page 2 Proposed ON- STREET PARKING on West side Main Street North of 3rd Ave. S.W.: Concrete Sawing - 48 ft. @ $2.50 = $ 120.00 Curb Removal - 48 ft. @ $2.00 = 96.00 Sidewalk Removal - 240 sq.ft. @ $0.45 = 108.00 Sidewalk IrstaIlation- 240 sq.ft. @ $1.45 = 348.00 Curb Installation - 48 ft. @ $6.00 = 288.00 Total Construction Cost---------------- - - -- -- $ 960.00 City Cost (administration, engineering & capitalized interest) ------------ = 288.00 Total Estimated Cost----------------- - - - - -- 1 $ 1,248.00 These estimates are based on a proposed plan of a 5.5 foot wide sidewalk with a 2.0 foot wide bumper curb. If this plan is approved, all sidewalk will be removed and replaced at the 5.5 foot width under the 1982 sidewalk program. Also, other areas with sidewalk less than 5.0 foot width are being removed and replaced with 5.0 foot wide sidewalk. MVP /pv Marlow V. Priebe Director of Engineering - i • MAIN sr. ALLEY MCM4 Scws irrxl w nyi Q h ff- e-, Hutchinson Downtown Retail Association Hutchinson, Minnesota 55350 612- 879 -6025 +41nil F, 1982 ee rayon e :eyen and u/ity (ounc.0 men6eni: Jhe ,#Ujc- hinnon Jownfawn ?etai-1 /14/-ociation fo ""rRZIy Aeque2t2 tea# aLl d the &meet lif+% #n in iAe down - iown o,cea be wed on j' "ondoy eveningn un #.i..l 9 p,.m, By /avinrp, I ,ev"y/ /o;-' � �o)mn a a i is "he cca/ e now, Ct pive4 the LtIuAion .U.Ct Lbe dolt %mown meAc!unLI ane not oxen 'oA bmirei4. Srz ao,-ne camei wAene a lam-�o 14 banned oat, the tva!!uray 6ecamea gtcite a6adowed. �"e tntu t you will act Favona6!_y upon oun iequeAi. Sincene.ly yoruLA, /j 2 vJJ' Sandy L, 2neii S678,9-,-, Z APR 1982 RECFIvFZ 1000 watt mercury vapor light fixture and ballast is rated at 1075 watts. 400 watt high pressure sodium fixture and ballast is rated at 465 watts. A mercury vapor fixture produces a maximum of 63 lumens per watt. A 1000 watt fixture then produces a maximum of 63,000 lumens per fixture. A high pressure sodium fixture produces a maximiun of 140 lumens per watt. A 400 watt fixture then produces a maximum of 56,000 lumens per fixture. There are a total of 58 light fixtures from the Crow River to Fourth Avenue SIJ. 58 fixtures x 1075 watts = 62350 watts divided by 1000 gives you 62.35 KWIper hour x 3650 (365 days x 10 hours burning time) = 227578 KWH in year x .046874 cents per nIH (average cost last 12 months) = $10,667.49 per year operating expense. Approximately one half of the above lights are disconnected now for a yearly operating cost of $5,333.75 58 fixtures x 465 watts = 26970 watts divided by 1000 gives you 26.97 KW/per hour x 3650 = 98441 KWH in year x .046874 cents per KWH = $4,614.32 per year operating expense. Difference in operating expense per year $6,053.17 400 watt high pressure sodium fixture $135.00 each 58 fixtures x 5135.00 $ 79830.00 Equipment & labor to install new fixtures 4,089.00 $11,919.00 58 new 400 HPS fixtures could be paid for in less than two years in operating expenses alone. • /% (612) 587 -5151 CITY OF HUTC14IIAISON 37 A HING TON AVENUE WEST HUTCHINSON. !6 4!NN 55350 July 30, 1982 M E M O R A N D U M TO: MAYOR AND CITY COUNCIL FROM: HAZEL SITZ, PERSONNEL COORDINATOR RE: REPORT ON EMPLOYMENT The City Council has asked me to report on what would be the effect of a hiring freeze within the city. I believe it is appropriate to include an overview of city employment and data on present employees. Listings of positions and employee statistics are included for your information on the final 3 oaoes of this report. OVERVIEW OF CITY EMPLOYMENT Staffing. At this time, there are no full time positions vacant within the city. .In some cases, department heads requested larger staffs than were approved for the 1982 budget. The department heads do not consider their respective departments to be "padded" with extra employees, and in some cases the feeling exists that present needs would be better served with additional staff. There have been no resignations of full time employees since November, 1981. No new full time employees have been hired since June, 1981. Work loads. If work loads were to change significantly in any department, this would naturally have an effect on manpower needs in the future. The basic factors that would change the need would be an increase or decrease in the number and size of grants received, federal and state programs, improvement projects, and levels of services provided. Each of these particular factors would need to be addressed specifically prior to the time such a change would be anticipated. The general instruction that has already been given for preliminary 1983 budget preparation is to consider raising fees or reducing services where possible. REPORT ON EMPLOYMENT Page 2 Specific positions. In general, because each department is relatively small in numbers of employees, there are a great number of positions in which only one individual does a particular job. There is usually some overlap within a department, in that another employee is often trained as a partial backup in case of vacation, illness, or other short term absence. The long term loss of an employee in any of these one -of -a -kind positions would mean that no one else would have the specific training to fulfill all the duties of the position. Perhaps some of the duties of any position which could be classified as services could be eliminated if it were determined that the services were "unnecessary." Services include those provided to the public and (in the offices) to the various boards and commissions and city council. HIRING PRACTICES AND PERSONNEL POLICY The city's hiring practice for the past number of years has been to solicit and screen applicants to find the most skilled person available for the particular job, based on job description /specification. Most of our employees have had training beyond high school and /or prior work experience and possess excellent skills related to the positions for which they were hired. Our compensatory time policy serves to keep trained and capable people available year round and allows for longer worked hours in busy periods, shorter worked hours at off -peak times, without the necessity of paid overtime in many instances. A few persons work 3/4 time +. PART TIME WORKERS To supplement the full time employees, we have been fortunate in the past several years to have available a large pool of less skilled seasonal workers. During the school year, Work -Study students from HAVTI have filled needs for maintenance and recreation assistance at 0 9 i • REPORT ON EMPLOYMENT Page 3 a minimal cost to the city. During the summer months, CETA has provided workers through the summer youth program, at no cost to the city. In addition, from time to time we nhtain the services of Dartiallv funded CETA adult trainees for long term temporary employment. If these sources of labor were to dry up in the future due to cutbacks in federal funding, we would feel the loss in the park, recreation, street, and police departments particularly. (It is emphasized that these seasonal employees are assigned basic unskilled tasks under supervision and they are not expected to possess the skills needed in many full time positions.) We make considerable use of more fully trained part time employees on a year round basis to accommodate peak demand in several departments - in particular, the liquor store, police department, transit, and various offices. ALTERNATIVE PRACTICES Volunteerism. Volunteerism has been considered as a substitute for paid work, and it is beginning to receive more attention at this time. Individuals who have a specific desire to be of service in a particular area because of personal interests often make excellent volunteers. It should be noted that, as a general rule, the use of volunteers also means a loss of control and accountability, since most volunteers will not accept the degree of supervision that paid workers must accept. The effective use of volunteers assumes adherence to mutually accepted standards of performance and requires top notch supervision to ensure consistently good results. Improved use of paid staff. In some cases, officials and administrators be able to make more effective use of present staff by improved time management and intra- department communication. If employees are given sufficient lead time to complete large tasks, there should be minimal need for reshuffling work priorities and schedules to meet deadlines. Unrealistic deadlines and poorly timed communication have the unfortunate effect of lowering standards of accuracy and dumping employee morale. REPORT ON EMPLOYMENT Page 4 Employees can often come up with suggestions for improved work methods, which supervisors should solicit, evaluate, and implement when feasible. A major waste of payroll dollars is caused by the "hurry up and wait" syndrome. Just as with the production of electrical power, the effective supervisor of employees needs to direct efforts to level off the peak demand times and spread energy usage more evenly throughout the production cycle. Employee- sharing. We have developed the practice of moving certain employees between departments to accommodate seasonal variations in work loads. Examples: Civic Arena /winter, Park /summer; Engineering /summer, Street snow removal /winter. The continuation and increase of this practice would be an excellent way to solve employee shortages in some cases. A deterrent to the method might be unwill- ingness on the part of department heads to accept employees they feel do not possess the qualities or qualifications they desire. In general, employees would probably prefer being transferred to being without a job. Examples of increased use of this method are shown below. Changes of this kind require good control by supervisors. The burden for the retraining and scheduling involved cannot be placed randomly on employees. EXAMPLES OF IMPROVED USE OF PAYROLL DOLLARS If budget problems make it necessary to cut payroll costs in the future, there are a number of drastic methods of dealing with the situation, many of which have already been used by other employers. (General cutback in hours, layoff, wage cuts, etc.) Reviewing our particular set of employees, other less drastic methods can be suggested. A. 1. Assume the building custodian (age 66) retires in mid -1983 See DATA - last page.) 2. Determine which departments have staff they can spare to perform building maintenance duties at several locations, and 0 REPORT ON EMPLOYMENT Page 5 0 assign 2 or more individuals to each work about 10 hours per week in building maintenance, 30 hours per week in regular job. 3. Saving: 1 full time position. B. 1. Assume a full time employee in any department resigns. 2. Determine what part of his /her job is non - essential and eliminate that portion. 3. Replace the resigning full time employee with a part time employee, or "close ranks" with existing staff if possible. 4. Saving: Half of a full time position. C. 1. Assume a part time liquor store 2. Determine which department has more hours per week as a liquor and weekends) and assign 1 or 2 per week as clerk, 30 hours per 3. Saving: 1 part time position. clerk resigns. staff available to work 10 or store clerk (mostly evenings individuals to work 10 hours week in regular job. D. 1. Assume a supervisor in any department resigns. 2. Determine whether another employee in the department has the skills to be promoted to supervisory level. 3. Promote existing employee and "close ranks" with promoted employee combining supervision with a continuation of some of his /her other duties. 4. Saving: 1 full time position. E. 1. Assume funding or program cutbacks in a specific department result in a reduced need for the special skills of a particular employee. 2. Assign the employee several hours per week of less skilled work as in examples A and C (clerking or maintenance). 3. Saving: A portion of a full time position. F. 1. Assume the CETA and Work -Study programs continue to provide us with a good supply of unskilled workers, or that increased volunteerism provides dependable manpower. 2. In affected departments, identify the least skilled tasks from each job so that an unskilled worker can accomplish them on a part time basis. REPORT ON EMPLOYMENT Page 6 3. If resignations occur, do not fill vacancies, but "close ranks`.' and leave the unskilled tasks to the no -cost workers. . 4. Saving: 1 or more full time positions. NOTE: We are prohibited by law from using funded positions in such a way as to result in the displacement of employed workers. Many more examples could be given. Some would be more practical than others because of the different circumstances in each situation. SUMMARY - WHAT WOULD BE THE EFFECT OF A HIRING FREEZE? An inflexible directive for a hiring freeze could have a drastic and highly impractical effect in the case of a one -of -a -kind position. It could be accommodated more easily where a larger group of employees performs similar functions. A general directive to review each loss of an employee based on the surrounding circumstances would allow department heads to come up with recommendations for dealing with the situation as it arose. For the sake of employee morale, proposed changes should be explained fully to prevent unfounded rumors from circulating. 0 0 r] • CITY EMPLOYEES AS PER PAY PLAN - 1982 NUMBER ,JOB TITLE EMPLOYED EXPLANATION • OFFICE Receptionist /Cashier 1 City Clerk's Office (3/4 time +) General Clerk /Secretary 1 City Clerk's Office Secretary to a Director 3 1 - Police Department 1 - Engineering /Inspections 1 - Park & Recreation, supplemented by a part time secretary Administrative Secretary 1 City Administrator's Office Water Billing Clerk 1 City Clerk's Office Personnel /Records Clerk 1 " " " Finance Clerk 1 Accountant's Office Motor Vehicle Clerk 1 Motor Vehicle Office; part time clerk in addition Motor Vehicle Deputy Reg. 1 Motor Vehicle Office • SALES Liquor Store Clerk 4 Business hours 6 days /week, 14 hours /day; Supplemented by 3 or 4 part time clerks • SERVICE, MAINT., TECHNICIANS City bus driver 2 Two vehicles; total service hours: 14- 17 /da, (One.driver 3/4 time +)also part time drier Building Custodian 1 Responsible for several buildings Custodian /Engineer 1 Responsible for City Hall Engineering Tech. I 1 Engineering department Engineering Tech. II 1 it -more highly skilled Assistant City Engineer 1 " " General Laborer 1 Parks /Arena Park /Arena Maintenance 2 " - more highly skilled Park Maint. Operator 4 Park and sidewalk maintenance /snow removal Street Maint. General 2 Operate trucks, light equipment Street Equipment Operator 3 Operate heavy equipment Equipment Mechanic 1 Motor Pool Cemetery Maintenance Chief 1 Supplemented by part time and seasonal help Park Foreman 1 Supervises full time and seasonal help Street Foreman 1 Supervises full time and seasonal help Motor Pool Supervisor 1 Supervises mechanic and motor pool services Water /Wastewater Maint. Tec. 2 In plants and meter reading Wastewater Plant Operator 1 Coverage 7 days a week Chief Water Plant Operator 1 " Chief Wastewater P1. Op. 1 " • PROTECTIVE SERVICE Police Radio Dispatcher 4 Coverage 7 days /week, 24 hours /day; Supplemented by 4 or more part time Community Service Officer 1 Animal control, parks, parking; supplementer by part time parking monitor .. L CITY EMPLOYEES - Page 2 NUMBER JOB TITLE EMPLOYED • CIVIL SERVICE SWORN PERSONNEL Police Patrol Officer 9 Police Sergeant 3 Juvenile Officer/ Investigator 1 • SUPERVISORY AND ADMINISTRATIVE EXPLANATION Coverage 7 days /week, 24 hours /day; Supplemented by 5 licensed part time officers and additional unpaid reserves 1 per shift Recreation Supervisor 1 Supervises programs and seasonal employees Civic Arena Manager 1 Supervises activities, full time and seasonal employees Forester 1 Supervises seasonal employees; works in conjunction with park maintenance Personnel /Transit Coord. 1 Also special projects,(3 /4 time +) Department Heads,Directors 9 1 - Police Chief 1 - Director of Engineering 1 - Liquor Store Manager 1 - Building Official 1 - Fire Marshal 1 - Finance Director 1 - Director of Maintenance 1 - Director of Parks & Recreation 1 - City Administrator TOTAL 75 • PART TIME EMPLOYEES - HALF TIME OR MORE Senior Center Coordinator Bus dispatcher Park Department Secretary Motor Vehicle Clerk Liquor Store Clerk Parking Monitor 1 Approximately half time 2 Approximately half time 1 Approximately half time (weeds, registra ft 1 Half time or more, as traffic demands 2 Half time or more, as traffic demands 1 Half time or more (retiree) • - NUMEROUS OTHER EMPLOYEES WORK LIMITED PART TIME HOURS: POLICE DISPATCHERS, LIQUOR STORE CLERKS, BUS DRIVER, AND RETIREES IN MAINTENANCE JOBS. IN ADDITION, STUDENTS ARE EMPLOYED IN SEASONAL MAINTENANCE AND OTHER WORK. - 0 9 O DATA ON FULL TIME EMPLOYEES AND EMPLOYMENT HISTORY - JULY, 1982 AGES OF FULL TIME EMPLOYEES YEARS OLD NUMBER 20 -25 9 26 -30 15 31 -35 11 36 -40 17 41 -45 6 46 -50 3 51 -55 5 56 -60 8 61 -65 0 66 -70 *1 TOTAL 75 COMMENTS Youngest is age 22 *Building custodian - age 66 - interested in working at least one more year, possibly with slightly reduced hours. (Mandatory retirement age is 70 years.) O LENGTH OF EMPLOYMENT OF FULL TIME EMPLOYEES YEARS NUMBER OF EMPLOYED EMPLOYEES COMMENTS (10 -1 0 -2 12 3 -5 25 37 50% of employees have 1 to 5 years of service. 83% of employees have 1 to 10 years of service. 6 -10 25 Last full time employee was hired in June, 1981. • 11 -15 13 TOTAL 75 • FULL TIME NOTE: THERE IS CONSIDERABLE TURNOVER IN EMP12EEEfiURNOVER - 1980 to PRESENT PART TIME EMPLOYEES - NOT LISTED HERE. EMPLOYEE STATUS DATE COMMENTS Recreation Supervisor Terminated 7 -80 Replaced by promotion Building Official Disabled 8 -80 Replaced by promotion Liquor Store Clerk Terminated 9 -80 Replaced by hiring Police Dispatcher Terminated 11 -80 Replaced by hiring Street Maintenance Worker Terminated 11 -80 Replaced by hiring Park Maintenance Worker Retired 5 -81 Replaced by hiring Recreation Supervisor Terminated 5 -81 Replaced by hiring Liquor Store Clerk Terminated 11 -81 Replaced by part time promotion Street /Park Superintendent Retired 11 -81 Replaced through reorganization TOTAL 9 replaced in 1980 and 1981 added in 1980 (1 new police patrol - 1 new wastewater - —J —positions 12 1 vacant street maint. filled) 103 FROM: RE (612) 587 -5151 CITY OF HUTCHIAMON 37 WASHINGTON AVENUE WEST HUTCHINSON, MINN. 55350 August 6, 1982 M E M 0 R A N D MAYOR AND CITY COUNCIL PERSONNEL COORDINATOR FINAL PAYMENT ON CONTRACT FOR KITCHEN - SENIOR CENTER TO KRAUS- ANDERSON Final items in the interior of the Senior Center and kitchen have been completed by Kraus - Anderson this week. The contractors are also completing exterior details, which are the responsibility of the developer to approve. It would be appropriate at this time to make the final payment of $3,000 which we have withheld on the kitchen contract with Kraus - Anderson. Y- 0 if CERTIFICATION OF MINUTES RELATING TO $490,000 IMPROVEMENT BONDS OF 1982 AND $1,275,000 GENERAL OBLIGATION WATER REVENUE BONDS OF 1982 Issuer: City of Governing Body: Kind, date, time held on August 1 council chambers Members present: Members absent: Hutchinson, Minnesota City Council and place of meeting: A regular meeting, J, 1982, at 7:30 o'clock p.m., in the at the City Hall. Documents Attached: Minutes of said meeting (pages): 1 through 26 RESOLUTION NO. RESOLUTION RELATING TO $490,000 IMPROVEMENT BONDS OF 1982 AND $1,275,000 GENERAL OBLIGATION WATER REVENUE BONDS OF 1982; AWARDING THE SALE THEREOF RESOLUTION NO. "Zz RESOLUTION RELATING TO $490,000 IMPROVEMENT BONDS OF 1982; FIXING THE FORM AND DETAILS, PROVIDING FOR THE EXECUTION AND DELIVERY THEREOF AND THE SECURITY THEREFOR RESOLUTION NO.',7�2il; RESOLUTION RELATING TO $1,275,000 GENERAL OBLIGATION WATER REVENUE BONDS OF 1982; AUTHORIZING THE ISSUANCE AND PRESCRIBING THE FORM AND DETAILS THEREOF AND PROVIDING FOR THEIR PAYMENT 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 said corporation in my legal custody, from which they have been transcribed; that said documents 91— &; are a correct and complete transcript of the minutes of a meeting of the governing body of said corporation, and correct and complete copies of all resolutions and other actions taken and of all documents approved by the governing body at said meeting, so far as they relate to said obligations; and that said 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 this day of August, 1982. (SEAL) Gary D. Plotz City Administrator i 0 -The City Administrator presented affidavits showing publication of the Notice of Bond Sale of $490,000 Improvement Bonds of 1982 and $1,275,000 General Obligation Water Revenue Bonds of 1982, of the City in the Hutchinson Leader, the official newspaper of the City, and in Commercial West, as required by law and as directed by Resolution No. 7233 of the Council adopted July 13, 1982. The affidavits were examined, found satisfactory and directed to be filed in the office of the City Administrator. The City Administrator reported that sealed bids had been received at his office prior to the time designated in the Notice of Bond Sale for the opening of bids and that the bids had then been opened by him at that time, pursuant to the Notice of Bond Sale and the Terms and Conditions of Sale. The bids were then publicly read and considered, and the terms of each were determined to be as follows: • After some discussion, Member 0 introduced the following resolution and moved its adoption: RESOLUTION NO. 7,2 / RESOLUTION RELATING TO $490,000 IMPROVEMENT BONDS OF 1982 AND $1,275,000 GENERAL OBLIGATION WATER REVENUE BONDS OF 1982; AWARDING THE SALE THEREOF BE IT RESOLVED by the City Council of the City of Hutchinson, Minnesota, as follows: 1. This Council, has by Resolution No. 7233 adopted on July 13, 1982, authorized and determined to issue $490,000 Improvement Bonds of 1982 and $1,275,000 General Obligation Water Revenue Bonds of 1982 of the City (together, the Bonds) and ordered that a public sale of the Bonds be held on this date. Notice of the public sale of the Bonds was duly given as required by Minnesota Statues, Section 475.60. In accordance with the Terms and Conditions of Sale, sealed bids were received by the City Administrator prior to 2:00 o'clock p.m. on this date. Those bids have been opened, read and considered by this Council and the terms of each have now been determined. 2. The bid of , or , (the Purchaser), for the purchase of the Bonds on the terms set forth in the Terms and Conditions of Sale, at a price of $ plus accrued interest from the date of the Bonds to the date of delivery thereof, the Bonds to bear interest at specified rates resulting in a net interest cost (determined by the addition of any discount to and the deduction of any premium from the total interest on all Bonds from their date to their stated maturity) of $ , which is the lowest net interest cost of all bids received pursuant to the Notice of Bond Sale and the Terms and Conditions of Sale and is therefore declared to be the best bid received, and is hereby accepted. The Mayor and the City Administrator are hereby authorized and directed to execute a contract for the sale of the Bonds to the Purchaser in accordance with the terms of said bid, the Terms and Conditions of Sale and this resolution. 3. The City Administrator shall retain the good faith check of the Purchaser, pursuant to the Terms and -2- E • Conditions of Sale, and shall return the good faith checks of the unsuccessful bidders forthwith. 4. Official Statement. The Official Statement relating to the Bonds, prepared by the City in cooperation with Ehlers and Associates, Inc, is approved, and its distribution to prospective bidders for the Bonds ratified. The City Administrator is authorized, in behalf of the City, to sign and deliver to the Purchaser a certificate as to the accuracy and completeness of the Official Statement. Mayor Attest: 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 thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted and was signed by the Mayor and attested by the City Administrator. -3- Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION RELATING TO $490,000 IMPROVEMENT BONDS OF 1982; FIXING THE FORM AND DETAILS, PROVIDING FOR THE EXECUTION AND DELIVERY THEREOF AND THE SECURITY THEREFOR BE IT RESOLVED by the City Council of the City of Hutchinson, Minnesota, as follows: Section 1. Recitals. 1.01. Authorization. This Council has heretofore ordered various local improvement projects designated as set forth in Section 1 of Resolution No. 7233 adopted July 13, 1982 (the Improvements), to be constructed within the City under and pursuant to Minnesota Statutes, Chapter 429. The present estimated total cost of the Improvements, as set forth in Section 1 of Resolution No. 7233, together with additional obligations issued pursuant to Minnesota Statutes, Section 475.56, is $490,000. 1.02. Sale. Pursuant to Resolution No. 7233, this Council determined to issue and sell $490,000 principal amount of Improvement Bonds of 1982, of the City (the Bonds) to defray the expense incurred and estimated to be incurred by the City in making the Improvements, including every item of cost of the kinds authorized in Minnesota Statutes, Section 475.65, and $8,200 representing interest as provided in Minnesota Statues, Section 475.56. Pursuant to Resolution No. 7233, a public sale of the Bonds was held on August 10, 1982 and this Council, by resolution adopted on that date, accepted the bid of , of (the Purchaser), to purchase the Bonds on the terms and conditions set forth in the Terms and Conditions of Sale. 1.03. Issuance of Bonds. All acts, conditions and things required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed prior to the issuance of the Bonds have been done, do exist, have happened, and have been performed, wherefore it is now necessary for this Council to establish the form and terms of the Bonds, to provide for the security thereof, and to issue the Bonds forthwith. -4- 1.04. Maturities. This Counc that the maturities of the Bonds, 3.01 hereof, are warranted by the of the assessments and ad valorem the cost of the Improvements. 0 it finds and determines as set forth in Section anticipated collection taxes to be levied for Section 2. Form of Bonds and Coupons. 2.01. Form of Bonds. The Bonds shall be prepared in substantially the following form: -5- UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF McLEOD CITY OF HUTCHINSON IMPROVEMENT BOND OF 1982 No. $5,000 The City of Hutchinson, McLeod County, Minnesota (the City), acknowledges itself to be indebted, and for value received hereby promises to pay to bearer, upon presentation and surrender hereof, the principal sum of FIVE THOUSAND DOLLARS on May 1, 19 , without option of prior payment, and to pay interest thereon from the date hereof until said principal sum is paid, at the rate of hundredths percent ( 8) per annum. Interest hereon is payable semiannually on May 1 and November 1, commencing May 1, 1983, interest to maturity being payable in accordance with and upon presentation and surrender of the interest coupons hereto appurtenant. Both principal and interest are payable at , in or its successor as paying agent, in any coin or currency of the United States of America which on the respective dates of payment is legal tender for payment of public and private debts. For the prompt and full payment of such principal and interest as the same become due, the full faith, credit and taxing powers of the City have been and are hereby irrevocably pledged. This Bond is one of an issue in the aggregate principal amount of $490,000 (the Bonds), all of like date and tenor except as to serial number, interest rate, and maturity date, issued to pay the cost of construction of local improvements in the City (the Improvements), and is issued pursuant to and in full conformity with the provisions of the Constitution and laws of the State of Minnesota thereunto enabling, including Minnesota Statutes, Chapters 429 and 475. This Bond is payable primarily from the 1982 Improvement Bond Fund (the Fund) of the City, but the Council is required by law to pay maturing principal hereof and interest thereon out of any funds in the treasury if moneys on hand in the Fund are insufficient therefor. i 0 IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, conditions and things required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed precedent to and in the issuance of this Bond in order to make it a valid and binding general obligation of the City according to its terms have been done, do exist, have happened and have been performed as so required; that prior to the issuance hereof the City has levied or agreed to levy special assessments on property specially benefited by the Improvements and ad valorem taxes on all taxable property within the City, collectible in the years and amounts required to produce sums not less than 5% in excess of the principal of and interest on the Bonds as such principal and interest respectively become due, and has appropriated the same to the Fund in the manner specified in Minnesota Statutes, Section 429.091, Subdivision 4; that, to take care of any accumulated or anticipated deficiency in the Fund, additional ad valorem taxes are required by law to be levied upon all taxable property in the City without limitation as to rate or amount; and that the issuance of this Bond does not cause the indebtedness of the City to exceed any constitutional or statutory limitation.. IN WITNESS WHEREOF, the City of Hutchinson, McLeod County, State of Minnesota, by its City Council, has caused this Bond to be executed by the facsimile signature of the Mayor and the manual signature of the City Administrator, and by a printed facsimile of the official seal of the City, has caused the interest coupons appurtenant hereto and the certificate appearing on the reverse side hereof to be executed and authenticated by the facsimile signatures of said officers, and has caused this Bond to be dated as of August 1, 1982. ATTEST: (Facsimile Signature) City Administrator Mayor (FACSIMILE SEAL) 2.02. Form of Coupons. Interest on each Bond to maturity shall be represented by a consecutively numbered set of interest coupons printed in substantially the following form: -7- 0 i No. On May (August) 1, 19 , the City of Hutchinson, McLeod County, Minnesota, will pay to bearer at , in , , the sum shown hereon in coin or currency of the United States of America which at the time of payment is legal tender for payment of public and private debts, for interest then due on its Improvement Bond of 1982, dated August 1, 1982, No. (Facsimile Signature) City Administrator 2.03. Form of Certificate. substantially the following form reverse side of each Bond, follo the legal opinion to be rendered (Facsimile Signature) Mayor A certificate in shall be printed on the wing a copy of the text of by Bond Counsel: We certify that the above is a full, true and correct copy of the legal opinion rendered by Bond Counsel on the issue of Bonds of the City of Hutchinson, Minnesota which includes the within Bond, dated as of the date of delivery of and payment for the Bonds. (Facsimile Signature) (Facsimile Signature) City Administrator Mayor Section 3. Bond Terms, Execution and Delivery. 3.01, ' 2 ate, Amount, Denomination and Maturit The City shall forthwith issue and deliver the Bon s, denominated Improvement Bonds of 1982, payable primarily from the Bond Fund created in Section 4.02 hereof. The Bonds shall be dated as of August 1, 1982, shall be 98 in number and numbered from 1 to 98, inclusive, each in the denomination of $5,000. The Bonds shall mature in order of serial numbers, without option of prior payment, on May 1 in the years and amounts set forth below, and Bonds of each annual maturity shall bear interest from date of issue until paid at the rate per annum shown opposite the year of such maturity as follows: Year Amount Rate Year Amount Rate 1984 $40,000 % 1989 $50,000 1985 50,000 1990 50,000 1986 50,000 1991 50,000 1987 50,000 1992 50,000 1988 50,000 1993 50,000 Em 8 3.02. Interest. Interest on the Bonds shall be payable on May 1, 1983, and semiannually thereafter on May 1 and November 1 of each year. 3.03. Paying Agent. The Purchaser has designated , in , , as paying agent. That recommendation is hereby approved. The City agrees to pay the usual and customary charges of said paying agent for the receipt and disbursement of principal and interest moneys'. The principal of and interest on the Bonds shall be payable at the principal office of the paying agent designated herein, in F , or in the event of its resignation, removal or incapability of acting as paying agent, at the office of such successor paying agent as may be approved by this Council. Upon merger or consolidation of the paying agent with another corporation, if the resulting corporation is a bank or trust company authorized by law to conduct such business, such corporation shall be authorized to act as successor paying agent. No resignation of the paying agent and no appointment of a successor paying agent shall become effective until the date specified in a notice of the appointment which the Council shall cause to be published in a daily or weekly periodical published in a Minnesota city of the first class, or its metropolitan area, which circulates throughout the state and furnishes financial news as a part of its service, a copy of which notice shall also be mailed to the Purchaser of the Bonds, not less than thirty (30) days before said effective date. 3.04. Preparation and Delivery. The Bonds shall be prepared under the direction of the City Administrator and shall be executed on behalf of the City by the signatures of the Mayor and the City Administrator, and shall be sealed with the official corporate seal of the City, provided that one of said signatures and the corporate seal may be printed, engraved, or lithographed facsimiles thereof. On the reverse side of each Bond shall be printed a copy of the legal opinion rendered by Bond Counsel and the certificate of the Mayor and City Administrator. The certificate as to legal opinion and the interest coupons attached to the Bonds shall be executed and authenticated by the printed, engraved or lithographed facsimile signatures of the Mayor and City Administrator. When the Bonds have been so executed and authenticated, they shall be delivered by the City Administrator to the Purchaser upon payment of the purchase price in accordance with the contract of sale heretofore made and executed, and the Purchaser shall not be obliged to see to the application of the purchase price. 0 i Section 4. Security provisions. 4.01. 1982 Improvement Construction Fund. There is hereby created a special bookkeeping fund to be designated as the "1982 Improvement Construction Fund" (hereinafter referred to as the Construction Fund), to be held and administered by the City Administrator separate and apart from all other funds of the City. The City appropriates to the Construction Fund (a) the proceeds of the sale of the Bonds, and (b) all collections of special'assessments levied for the Improvements until completion and payment of all costs of the Improvements. The Construction Fund shall be used solely to defray expenses of the Improvements, including but not limited to the transfer to the Bond Fund, created in Section 4.02 hereof, of amounts sufficient for the payment of interest and principal, if any, due upon the Bonds prior to the completion and payment of all costs of the Improvements. Upon completion and payment of all costs of the Improvements, any balance of the proceeds of Bonds remaining in the Construction Fund may be used to pay the cost, in whole or in part, of any other improvements instituted pursuant to the Act, as directed by the City Council, but any balance of such proceeds not so used shall be credited and paid to the Bond Fund. 4.02. 1982 Improvement Bond Fund. So long as any of the Bonds are outstanding and any principal of or interest thereon unpaid, the City Administrator shall maintain a separate and special bookkeeping fund designated "1982 Improvement Bond Fund" (hereinafter referred to as the Bond Fund) to be used for no purpose other than the payment of the principal of and interest on the Bonds and on such other improvement bonds of the City as have been or may be directed to be paid therefrom. The City irrevocably appropriates to the Bond Fund (a) the collections of special assessments and other funds to be credited and paid thereto in accordance with the provisions of Section 4.01, (b) any taxes levied in accordance with this resolution, and (c) all such other moneys as shall be received and appropriated to the Bond Fund from time to time. If the balance in the Bond Fund is at any time insufficient to pay all interest and principal then due on all bonds payable therefrom, the payment shall be made from any fund of the City which is available for that purpose, subject to reimbursement from the Bond Fund when the balance therein is sufficient, and the Council covenants and agrees that it will each year levy a sufficient amount to take care of any accumulated or anticipated deficiency, which levy is not subject to any constitutional or statutory tax limitation. -10- 0 1 4.03. Additional Bonds. The City reserves the right to issue additional bonds payable from the Bond Fund as may be required to finance costs of the Improvements not financed hereby; provided that the City Council shall, prior to the delivery of such additional bonds, levy or agree to levy by resolution sufficient additional special assessments and ad valorem taxes, if any, which, together with other moneys or revenues pledged for the payment of said additional obligations, will produce revenues at least five percent (5 %) in excess of the amount needed to pay when due the principal and interest on all bonds payable from the Bond Fund. The additional special assessments, ad valorem taxes and moneys or revenues so pledged, levied or agreed to be levied shall be irrevocably appropriated to the Bond Fund in the manner provided by Minnesota Statutes, Section 475.61. 4.04. Levy of Special Assessments. The City hereby covenants and agrees that for payment of the cost of the Improvements it will do and perform all acts and things necessary for the full and valid levy of special assessments against all assessable lots, tracts and parcels of land benefited thereby and located within the area proposed to be assessed therefor, based upon the benefits received by each such lot, tract or parcel, in an aggregate principal amount not less than twenty percent (20 %) of the cost of the Improvements. In the event that any such assessment shall be at any time held invalid with respect to any lot, piece or parcel of land, due to any error, defect or irregularity in any action or proceeding taken or to be taken by the City or this Council or any of the City's officers or employees, either in the making of such assessment or in the performance of any condition precedent thereto, the City and this Council hereby covenant and agree that they will forthwith do all such further acts and take all such further proceedings as may be required by law to make such assessments a valid and binding lien upon such property. The Council presently estimates that the special assessments shall be payable in not more than installments, the first installment to be collectible with taxes during the year 198 , and that deferred installments shall bear interest at the rate of percent ( %) per annum from the date of the resolution levying said assessment until December 31 of the year in which the installment is payable. 4.05. Ad Valorem Taxes. It is hereby found and determined to be just and equitable that all that part of the cost of the Improvements, not paid by collections of the special assessments heretofore agreed to be levied -11- I pursuant to Section 4.04 hereof, shall be paid from general ad valorem tax levies upon all of the taxable property in the City, and that such portion of the cost will not exceed the total benefits to be conferred by the Improvements upon the City at large. To provide moneys for the payment of such portion of said cost, there is hereby levied upon all taxable property in the City a direct, annual, ad valorem tax, which shall be collectible with other taxes levied by the City in the following years and amounts: Collection Collection Year Amount Year Amount Said taxes shall be irrepealable as long as any of the Bonds are outstanding and unpaid, provided that the City reserves the right and power to reduce said levies by the amount of any moneys irrevocably appropriated to and actually paid into the Bond Fund from any source other than the special assessments and taxes herein levied or provided for, in accordance with the provisions of Minnesota Statutes, Section 475.61. 4.06. Full Faith and Credit Pledged. The full faith and credit of the City are irrevocably pledged for the prompt and full payment of the principal of and the interest on the Bonds, and the Bonds shall be payable from the Bond Fund in accordance with the provisions and covenants contained in this resolution. It is estimated that the taxes and special assessments levied and to be levied for the payment of the Improvements will be collected in amounts not less than five percent (5 %) in excess of the annual principal and interest requirements of the Bonds. If the money on hand in the Bond Fund should at any time be insufficient for the payment of principal and interest then due, this City shall pay the principal and interest out of any fund of the City, and such other fund or funds shall be reimbursed therefor when sufficient money is available to the Bond Fund. If on -12- October 1 in any year the sum of the balance in the Bond Fund plus the amount of taxes and special assessments theretofore levied for the Improvements and collectible through the end of the following calendar year is not sufficient to pay when due all principal and interest become due on all Bonds payable therefrom in said following calendar year, or the Bond Fund has incurred a deficiency in the manner provided in this Section 4.06, a direct, irrepealable, ad valorem tax shall be levied on all taxable property within the corporate limits of the City for the purpose of restoring such accumulated or anticipated deficiency in accordance with the provisions of this resolution. Section 5. Defeasance. When all of the Bonds and all coupons appertaining thereto have been discharged as provided in this section, all pledges, covenants and other rights granted by this resolution to the holders of the Bonds shall cease. The City may discharge its obligations with respect to any Bonds and coupons appertaining thereto which are due on any date by depositing with the paying agent on or before that date a sum sufficient for the payment thereof in full; or, if any Bond or coupon should not be paid when due, it may nevertheless be discharged by depositing with the paying agent a sum sufficient for the payment thereof in full with interest accrued to the date of such deposit. The City may also at any time discharge its obligations with respect to any Bonds, subject to the provisions of law now or hereafter authorizing and regulating such action, by depositing irrevocably in escrow, with a bank qualified by law as an escrow agent for this purpose, cash or securities which are general obligations of the United States or securities of United States agencies which are authorized by law to be so deposited, bearing interest payable at such time and at such rates and maturing on such dates as shall be required, without reinvestment, to pay all principal and interest to become due thereon to maturity. Section 6. Registration, Certification of Proceedings, Investment of Moneys and Arbitrage. 6.01. Registration. The City Administrator is hereby authorized and directed to file a certified copy of this resolution with the County Auditor of McLeod County, together with such other information as he shall require, and to obtain from the County Auditor a certificate that the Bonds have been entered on his bond register and that the tax required for the payment thereof has been levied and filed as required by law. -13- 6.02. Certification of Proceedings. The officers of the City and the County Auditor of McLeod County are hereby authorized and directed to prepare and furnish to the Purchaser, and to Dorsey & Whitney, Bond Counsel, certified copies of all proceedings and records of the City, and such other affidavits, certificates and information as may be required to show the facts relating to the legality and marketability of the Bonds as the same appear from the books and records under their custody and control or as otherwise known to them, and all such certified copies, certificates and affidavits, including any heretofore furnished, shall be deemed representations of the City as to the facts recited therein. 6.03. Covenant. The City covenants and agrees with the holders from time to time of the Bonds that it will not take or permit to be taken by any of its officers, employees or agents any action which would cause the interest on the Bonds to become subject to taxation under the Internal Revenue Code of 1954, as amended (the Code), and Regulations promulgated thereunder. 6.04. Investment of Moneys on Deposit in Bond Fund. Unless and until the regulations under Section 103(c) of the Code which have been promulgated by the Internal Service prior to the date hereof have been modified or amended in pertinent part, the City Administrator shall ascertain monthly the amount on deposit in the Bond Fund. If the amount on deposit therein ever exceeds by more than $73,500 the aggregate amount of principal and interest due and payable from the Bond Fund within 12 months thereafter plus a reasonable carryover amount not exceeding the greater of one year's earnings on the Bond Fund or one - twelfth of the annual debt service payable therefrom, such excess shall not be invested except at a yield less than or equal to the yield on the Bonds, based upon their amount, maturities and interest rates on their date of issue, computed by the actuarial method. If any additional improvement bonds are ever issued and made payable from the Bond Fund pursuant to Section 4.03 hereof, the dollar amount in the preceding sentence shall be changed to equal fifteen percent (15 %) of the aggregate original principal amount of all bonds, including the Bonds, which are then outstanding and payable therefrom. The City reserves the right to amend the provisions of this Section 6.04 at any time, whether prior to or after the delivery of the Bonds, if and to the extent that this Council determines that the provisions of this Section 6.04 are not necessary in order to assure that the Bonds are not arbitrage bonds under Section 103(c) of the Code and the applicable Regulations. -14- • 0 6.05. Arbitrage. The Mayor and City Administrator, being the officers of the City charged with the responsibility for issuing the Bonds pursuant to this resolution, are authorized and directed to execute and deliver to the Purchaser a certificate in accordance with the provisions of Section 103(c) of the Code, and Treasury Regulations, Sections 1.103 -13, 1.103 -14 and 1.103.15, stating the facts, estimates and circumstances in existence on the date of issue and delivery of the Bonds which indicate that the proceeds of the Bonds will not be used in a manner that would cause the Bonds'to be arbitrage bonds within the meaning of said Code and Regulations. Adopted by the City Council on , 1982. Attest: City Administrator (SEAL) ayor 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 thereof: -15- a 9 0 and the following voted against the same: whereupon said resolution was declared duly passed and adopted, and was signed by the Mayor, which was attested by the City Administrator. -16- 0 i Member then introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION RELATING TO $1,275,000 GENERAL OBLIGATION WATER REVENUE BONDS OF 1982; AUTHORIZING THE ISSUANCE AND PRESCRIBING THE FORM AND DETAILS THEREOF, AND PROVIDING FOR THEIR PAYMENT BE IT RESOLVED by the City Council of the City of Hutchinson, Minnesota as follows: Section 1. Recitals. 1.01. Authorization. Th waterworks plant and system a and sanitary sewer system (th heretofore determined that it interests of the inhabitants $1,275,000 principal amount o Revenue Bonds of 1982, of the pursuant to the provisions of 444.075 and Chapter 475, for construction and installation treatment plant (hereinafter, e City owns and operates a nd a sewage treatment plant e Utility). This Council has is necessary and in the best of the City to issue f General Obligation Water City (the Bonds) under and Minnesota Statutes, Section the purpose of financing the of an addition to the water the Project). 1.02. Sale. Pursuant to Resolution No. 7233 adopted July 13, 1982, this Council determined to issue and sell the Bonds to defray the expense incurred and estimated to be incurred by the City in connection with the Project, including every item of cost of the kinds authorized in Minnesota Statutes, Section 475.65, and $18,000 representing interest as provided in Minnesota Statutes, Section 475.56. Pursuant to Resolution No. 7233, a public sale of the Bonds was held on August 10, 1982, and this Council, by resolution adopted on that date, accepted the bid of , of (the Purchaser), to purchase the Bonds on the terms and conditions set forth in the Terms and Conditions of Sale. 1.03. Outstanding Bonds. The City has previously issued its $1,300,000 General Obligation Water and Sewer Revenue Bonds, dated as of July 1, 1967 (hereinafter, the 1967 Bonds), under and pursuant to the provisions of a resolution duly adopted by this Council on May 22, 1967 (hereinafter, the 1967 Bond Resolution), its $900,000 -17- General Obligation Water and Sewer Revenue Bonds, dated as of May 1, 1969 (hereinafter, the 1969 Bonds), under and pursuant to the provisions of Resolution No. 2861 duly adopted by this Council on March 24, 1969, and its $800,000 General obligation Water and Sewer Revenue Bonds, dated as of November 1, 1971 (hereinafter, the 1971 Bonds), under and pursuant to the provisions of Resolution No. 4088 duly adopted by this Council on September 27, 1971. The 1967 Bonds, the 1969 Bonds and the 1971 Bonds are all general obligation bonds of the City payable primarily from net revenuesof the Utility issued pursuant to the provisions of Minnesota Statutes, Section 444.075. The City has retained the right to issue additional revenue bonds payable on a parity with the pledge of net revenues for the payment of principal of, premium, if any, and interest on the 1967 Bonds, the 1969 Bonds and the 1971 Bonds. 1.04. Issuance of Bonds. All acts, conditions and things which are required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed prior to the issuance of the Bonds hereof having been done, existing and having happened, it is now necessary for this Council to establish the form and terms of the Bonds, to provide for the security thereof and to issue the Bonds forthwith. Section 2. Bond Terms, Execution and Delivery. 2.01. Date, Amount, Denomination and Maturity. The City shall forthwith issue and deliver the Bonds, denominated General Obligation Water Revenue Bonds of 1982, in the aggregate principal amount of $1,275,000. The Bonds shall be dated August 1, 1982, shall be 255 in number and numbered consecutively from 1 through 255, each in the denomination of $5,000. The Bonds shall mature in order of serial numbers, without option of prior payment, on May 1 in the years and amounts set forth below, and Bonds of each annual maturity shall bear interest from date of issue until paid at the rate per annum shown opposite the year of such maturity as follows: Year Amount Rate Year Amount Rate 1985 $25,000 % 1992 $ 50,000 % 1986 25,000 1993 150,000 1987 25,000 1994 150,000 1988 25,000 1995 150,000 1989 25,000 1996 150,000 1990 25,000 1997 150,000 1991 25,000 1998 150,000 1999 150,000 Ll 2.02. Interest. Interest payable semiannually on May 1 commencing May 1, 1983. on the Bonds shall be and November 1 in each year, 2.03. Paying Agent. The Purchaser has recommended the , in I , as paying agent. That recommendation is hereby approved. The City will pay the usual and customary charges of the paying agent for the receipt and disbursement of principal and interest moneys. The principal of and interest on the Bonds shall be payable at the principal office of the paying agent designated herein, in , , or in the event of its resignation, removal or incapability of acting as paying agent, at the office of such successor paying agent as may be approved by this Council. Upon merger or consolidation of the paying agent with another corporation, if the resulting corporation is a bank or trust company authorized by law to conduct such business, such corporation shall be authorized to act as successor paying agent. No resignation of the paying agent and no appointment of a successor paying agent shall become effective until the date specified in a notice which the Council shall cause to be published in a daily or weekly periodical published in a Minnesota city of the first class or its metropolitan area, which circulates throughout the state and furnishes financial news as a part of its service, a copy of which notice shall also be mailed to the Purchaser of the Bonds, not less than thirty (30) days before said effective date. 2.04. Preparation and Delivery. The Bonds shall be prepared under the direction of the City Administrator and shall be executed on behalf of the City by the signatures of the Mayor and the City Administrator, and shall be sealed with the official corporate seal of the City, provided that one of said signatures and the corporate seal may be printed, engraved, or lithographed facsimiles thereof. On the reverse side of each Bond shall be printed a copy of a legal opinion rendered thereon by Bond Counsel and the certificate of the Mayor and City Administrator. The certificate as to legal opinion and the interest coupons attached to the Bonds shall be executed and authenticated by the printed, engraved or lithographed facsimile signatures of the Mayor and City Administrator. When the Bonds have been so executed and authenticated, they shall be delivered by the City Administrator to the Purchaser upon payment of the purchase price in accordance with the contract of sale heretofore made and executed, and the Purchaser shall not be obliged to see to the application of the purchase price. -19- Section 3. Form of Bonds and Coupons. 3.01. Form of Bonds. The Bonds shall be in substantially the following form: UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF McLEOD CITY OF HUTCHINSON GENERAL OBLIGATION WATER REVENUE BONDS OF 1982 No. $5,000 The City of Hutchinson, McLeod County, Minnesota (the City), acknowledges itself to be indebted, and for value received hereby promises to pay to bearer, upon presentation and surrender hereof, the principal sum of FIVE THOUSAND DOLLARS on May 1, 19 , without option of prior payment, and to pay interest thereon from the date hereof until said principal sum is paid, at the rate of hundredths percent ( 8) per annum. Interest hereon is payable semiannually on May 1 and November 1 in each year, commencing May 1, 1983, interest to maturity being payable in accordance with and upon presentation and surrender of the interest coupons hereto appurtenant. Both principal and interest are payable at the , in , , or its successor as paying agent, in any coin or currency of the United States of America which on the respective dates of payment is legal tender for payment of public and private debts. For the prompt and full payment of such principal and interest as the same become due, the full faith, credit and taxing powers of the City have been and are hereby irrevocably pledged. This Bond is one of an issue in the aggregate principal amount of $1,275,000 (the Bonds) all of like date and tenor except as to serial number, interest rate and maturity date, issued for the purpose of financing improvements to the City's waterworks plant and system, and is issued pursuant to and in full conformity with the provisions of the Constitution and laws of the State of Minnesota thereunto enabling, including Minnesota Statutes, Section 444.075. -20- 0 0 IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, conditions and things required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed precedent to and in the issuance of this Bond, have been done, do exist, have happened and have been performed in regular and due form, time and manner as so required; that in and by Resolution No. , adopted on August 10, 1982, the City has covenanted and agreed with the holders of the Bonds that it will impose and collect charges for the service, use and availability of its water and sewer utility at the times and in amounts required to produce net revenues adequate, to pay all principal of and interest on the Bonds and on all other bonds payable from net revenues of the water and sewer utility as such principal and interest respectively become due; that, if needed to pay such principal and interest, and ad valorem taxes will be levied upon all taxable property in the City, without limitation as to rate or amount; and that this Bond, together with all other indebtedness of the City outstanding on the date hereof, and on the date of its actual issuance and delivery, does not exceed any constitutional or statutory limitation of indebtedness. IN WITNESS WHEREOF the City of Hutchinson, McLeod County, State of Minnesota, by its City Council, has caused this Bond to be executed by the facsimile signature of the Mayor and the manual signature of the City Administrator, and by a printed facsimile of the official seal of the City, has caused the interest coupons appurtenant hereto and the certificate appearing on the reverse side hereof to be executed and authenticated by the facimile signatures of said officers, and has caused this Bond to be dated as of August 1, 1982. ATTEST: (Facsimile signature) City Administrator Mayor (FACSIMILE SEAL) 2.02. Form of Coupons. Interest on each Bond to maturity shall be represented by a consecutively numbered set of interest coupons printed in substantially the following form: No. -21- On May (August) 1, 19 , the City of Hutchinson, McLeod County, Minnesota, will pay to bearer at the , in I , the sum shown hereon in coin or currency of the United States of America which at the time of payment is legal tender for payment of public and private debts, for interest then due on its General Obligation Water Revenue Bond of 1982, dated August 1, 1982, No. (Facsimile signature) City Administrator 3.03. Form of Certificate. substantially the following form reverse side of each Bond, folio, the legal opinion to be rendered (Facsimile signature) Mayor A certificate in shall be printed on the wing a copy of the text of by Bond Counsel: We certify that the above is a full, true and correct copy of the legal opinion rendered by Bond Counsel on the issue of Bonds of the City of Hutchinson, Minnesota, which includes the within Bond, dated as of the date of delivery of and payment for the Bonds. (Facsimile signature) (Facsimile signature) City Administrator Mayor Section 4. Ma Water Net Revenues and ance of Accounts; P Faith and Credit. e of 4.01. Maintenance of Accounts and Covenants. The City shall continue to maintain separate Water and Sewer Accounts within its Public Utility Fund, with separate subaccounts as provided in the 1967 Bond Resolution, including but not limited to the General Obligation Water and Sewer Revenue Bond Account (hereinafter, the Account). This Council further covenants and agrees with the holders of the Bonds that it will keep and enforce the covenants and agreements set forth in the 1967 Bond Resolution. 4.02. Sufficiency of Net Revenues. It is determined that the estimated net revenues of the Utility will be sufficient to pay the principal of and interest on all bonds payable from the Account, including the 1967 Bonds, the 1969 Bonds, the 1971 Bonds and the Bonds. 4.03. Imposition of ns o Charges; Additional Bonds. Pursuant to the provisiof Minnesota Statutes, Section ` 444.075, as amended, the City hereby covenants and agrees with the holders from time to time of the Bonds that so -22- • 0 long as any of the Bonds are outstanding, the City will impose and collect reasonable charges for the service, use and availability of the Utility to the City and its inhabitants according to schedules calculated to produce net revenues which, together with collections of special assessments, will be sufficient to pay all principal and interest when due on the 1967 Bonds, the 1969 Bonds, the 1971 Bonds and the Bonds, and said net revenues, to the extent necessary, are hereby irrevocably pledged and appropriated to the payment of the Bonds and interest thereon; provided that nothing herein shall preclude the City from hereafter making further pledges and appropriations of net revenues of the Utility for the payment of additional obligations of the City hereafter authorized if the City Council determines before the authorization of such additional obligations that the estimated net revenues of the Utility will be sufficient, together with any other sources pledged to or projected to be used, for the payment of the Bonds and such additional obligations. Such further pledges and appropriations of said net revenues may be made superior or subordinate to or on a parity with the pledge and appropriation herein made. 4.04. Full Faith and Credit Pledged. The full faith, credit and taxing power of the City are irrevocably pledged for the prompt and full payment of the principal of and interest on the Bonds and on all other bonds made payable from the Account, and the Bonds shall be payable from the Account in accordance with the provisions and covenants contained in this resolution. If on October 1 in any year the sum of (i) the balance in the Account, plus (ii) the amount of net revenues of the Utility is less than the amount of principal and interest payable from the Account through the end of the next calendar year, a direct, irrepealable, ad valorem tax shall be levied on all taxable property within the corporate limits of the City for the purpose of restoring such accumulated or anticipated deficiency in accordance with the provisions of this resolution. Section 5. Defeasance. When all of the Bonds and all coupons appertaining thereto have been discharged as provided in this Section 5, all pledges, covenants and other rights granted by this resolution to the holders of the Bonds shall cease. The City may discharge its obligations with respect to any Bonds and coupons appertaining thereto which are due on any date by irrevocably depositing with -23- 0 0 the paying agent on or before that date a sum sufficient for the payment thereof in full; or, if any Bond or coupon should not be paid when due, it may nevertheless be discharged by depositing with the paying agent a sum sufficient for the payment thereof in full with interest accrued to the date of such deposit. The City may also at any time discharge its obligations with respect to any Bonds, subject to the provisions of law now or hereafter authorizing and regulating such action, by depositing irrevocably in escrow, with a bank qualified by law as an escrow agent for this purpose, cash or securities which are general obligations of the United States or securities of United States agencies which are authorized by law to be so deposited, bearing interest payable at such time and at such rates and maturing on such dates as shall be required, without reinvestment, to pay all principal and interest to become due thereon to maturity. Section 6. Registration, Certification of Proceedings, Investment of Moneys and Arbitraqe. 6.01. Registration. The City Administrator is hereby authorized and directed to file a certified copy of this resolution with the County Auditor of McLeod County, together with such other information as he shall require, and to obtain from said County Auditor a certificate that the Bonds have been entered on his bond register as required by law. 6.02. Certification of Proceedings. The officers of the City and the County Auditor of McLeod County are hereby authorized and directed to prepare and furnish to the Purchaser and to Dorsey & Whitney, Bond Counsel, certified copies of all proceedings and records of the City, and such other affidavits, certificates and information as may be required to show the facts relating to the legality and marketability of the Bonds as the same appear from the books and records under their custody and control or as otherwise known to them, and all such certified copies, certificates and affidavits, including any heretofore furnished, shall be deemed representations of the City as to the facts recited therein. 6.03. Covenant. The City covenants and agrees with the holders room time to time of the Bonds that it will not take or permit to be taken by any of its officers, employees or agents any action which would cause the interest on the Bonds to become subject to taxation under the Internal Revenue Code of 1954, as amended (the Code), and the Treasury Regulations promulgated thereunder. -24- r 0 0 6.04. Arbitrage. The Mayor and City Administrator, being the officers of the City charged with the responsibility for issuing the Bonds pursuant to this resolution, are authorized and directed to execute and deliver to the Purchaser a certificate in accordance with the provisions of Section 103(c) of the Code, and Treasury Regulations, Sections 1.103 -13, 1.103 -14 and 1.103 -15, stating the facts, estimates and circumstances in existence on the date of issue and delivery of the Bonds which make it reasonable to expect that the proceeds of the Bonds will not be used in a manner that would cause the Bonds to be arbitrage bonds within the meaning of the Code and Regulations. Adopted by the City Council on , 1982. Mayor Attest: City Administrator The motion for the adoption of the foregoing resolution was duly seconded by Member upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: , and whereupon said resolution was declared duly passed and adopted, and was signed by the Mayor, which signature was attested by the City Administrator. -25- 0 0 BID SUMMARY SHEET $ 490,000 Improvement Bonds of 1982 SALE: $1,275,000 G. 0. '.Dater Revenue Bonds of 1932 City of Hutchinson, Minnesota Tuesday, August 10, 1982 AT 2:00 BID # I , NET INTEREST COST: $ 2,066,575.10 BONDS OF HELD ON O'CLOCK P M. NET INTEREST RATE:10.8545 ACCOUNT MANAGER: FIRST NATIONAL BANK OF MINNEAPOLIS Allison- IJilliams Company Account Members: The First National Bank of Saint Paul duran & Moody, inG. Citizens Bank of Hutchinson DeuQherty, Da;n=iRSs Stand !RG. Moore, jupan e gempany, Inc. M. u,, .i Ek o r,. !He. BID # 2 NET INTEREST COST: $2,124,176.25 NET INTEREST RATE: 11.157 % ACCOUNT MANAGER: MERRILL LYNCH WHITE 'MELD CAPITAL MARKETS GROUP Account Members: ✓BID # 3 NET INTEREST COST: $ 2,048,236.88 NET INTEREST RATE: 10.7582 % ACCOUNT MANAGER: CRONIN & MARCOTTE, INC. Account Members: * * * * * * * * * BID # 4 NET INTEREST COST: $ 2,075,893.10 NET INTEREST RATE: 10.9035 % ACCOUNT MANAGER: BANCNORTHWEST PIPER, JAFFRAY & HOPWOOD, INC. Account Members: E. F. Hutton & Co., Inc. Robert S. C. Peterson, Inc. BID # 5 NET INTEREST COST: $ 2,113,659.36 NET INTEREST RATE: 11.1018 % THE NORTHERN TRUST CGMPANY ACCOUNT MANAGER: DAIN BOSWORTH, INC. KIDDER, PEABODY & COMPANY, INC. Account Members: Clayton Brown & Associates, Inc. American National Bank and Trust Company Becker & Cownie, Inc. Channer Newman Securities Company Hutchinson, Shockey, Erley & Company BID # 6 NET INTEREST COST: $ 2,069,975.00 NET INTEREST RATE: 10.8724% ACCOUNT MANAGER: PAINE, WEBBER, JACKSON & CURTIS Account Members: EHLERS AND ASSOCIATES, INC. Financial Specialists 507 Marquette Avenue Minneapolis, Minnesota 55402 Mate of SIRbille-elotat Courtjl of McLeod 40 City Of Hutchinson . . . 1. .4pp7itation No. Application for License to Sell Cigarettes at Retail Hutchinson The undersigned rcsident .... �. of the- ....... .... of - .... .. in the county of. McLe.o.4 ... ...... ... ...... . , State of Ninnesola, HEREBY Jf.4KE . .4PPLIC.1- T10A' FOR LICENSE to be issued to ..... M - a s o .. n . s ..... and . - Eastern Stars .... . ........ ......... ....... I ------ ...... .... ......... to sell cigarettes and cigarette papers and wrappers at retail at_.________...._ __._ _ .._......_..._ __....... .. .... McLeod County Fair Grounds .......... ................... --- ........... - ----- ...... ............ ....... ------- .... .. .. ....... - ......_....I ...... ............... ...... ...... --- ............. in the - ... city ....... - ...... ...... - Of - - Hutchin-sio-n ........ .... .... --- --- in said county and state for the term of 4 d . a . y , s ...... .......... I begLuninff witk .2-0t.h day of August-, 19 82, subject to the .7,aws of the State, of .3finnesota and the ordinances and regulations of said City Hutchinson . ............ .......... ...................... ......... of- --------- - ... - ....... .............. ...... ....... pertaining thereto, and herewith deposit ..5-00 .................. .....In payment of the fez therefor. gust . . ........ ...... .....X.... '..0 .......... ✓- ......... ......... AUu 15;6'c Ni 6tate of lffitinm;otav .... .......... �City. of - Hutchinson County of ......... ... McLeod ....... .4ppZication No..... ........ .... ...... Application for License to Sell Cigarettes at Retail The undersigned resident...... of the ........ .... .. - qity--- ............... --of - .....Hutchinson .1-1- ....... ... - ..... - ....... I ......... in the county of_-__ . ... McLeod ........ ............ , State of Minnesota, HEREBY ✓PPLIC.4- TIOX FOR LICENSE to be, issued to..........._ ..... -Tair Board . ............. I-- ....... ...... ---- ...... - ---- ........ -- ......... .......................... ....... to sell cigarettes and cigarette papers and wrappers at retail at.. ... .. . ..... ... ................. . ..... . McLeod County Fair Grounds ................................. ... - --- ............. ._ ................................. ........ --1 ...... in the, —, C+itY-..- ... ....... .......... Hutchinson ................... ........................ .. in said county and state for the term of A d4ys beginning with the .20th. August .. ..... day of .... . ...... 19,82 , subject to the laws of the State of Afinnesota and the ordinances and regulations of said . ...................... .. �C.i.ty ..... ....... . Of ... ...................... H . u . t . c - h - i . n . s . o . n ........... ........ ....pertaining thereto, and herewith deposit 9 -Q, 10 RETAIL "ON SALE" date Of ,P[!l�lle50ta, COOh'TY GF...... McLeod Cit - -- - - - - - -- -- - -- - - -- — to _Hutchinson To the. ............ City Council Cit ............ . . . ...._.............. Of tl7e ......... .y............- ............of. ..Hutchinson................ ... .... ........................... ... ......__................ ............. .... of Minnesota: Fair Board - -- .- ....... - ........ -- - - - - - -- - -- - - -- hereby applies_. for a licanae for the term of.- ..- ... --- four days —. -. - — from ihe. - -- 20th 1882 — -- -- -- - - - -- I/ f --- - - - - -- - - -g - - - - -- — ._.......- - - - -- to sell At Retail Only, Non- Intox- icating Malt Liquors, as the same are def ud by law, for cansumpt on "Oh "' fhose certain prctnZeng bn the...... - - -- - -- -- ...... - ... --- -- -- .___ ------------- ---- - -'- City- --------- - --- - --------- -Df Hutchinson dcaariZ. d as follows, McLeod County Fair Grounds at which place said appUp- ant­ ...nperate-. -.t },e busincm of and to that cnd represent..._ and atate....as foltowa: That said applicant..-....-_..--. ls_ a__.__..._ . ..... ....... ..rrli7en ... I .... of 14 United Statca; of good moral eAarac.:er and rcputa; and ha ............ attained the are of 21 pears; that ......... --.-..-. h.. e. ... is. ....... ..................._. ....prcpricfor....._- VI fhe csta.blishment for which the license will be 4su d if this application is grranted. That no manufa.ctwrer of such non- intoa- icatint malt liquors ha.s any ownership, i.n whole or in part, in said business of said applica.nt ------ or any interest therein; That said applicant...- - make. .... this application pursuant and subject to all tha laws of the State of Afinnesofa and the ordinances and rzfzLlations of said .._ ........ . — ----- - -City ..-- - - - - -- appU=We tlureto, which are hereby made a part hereof, and hereby agree ..... -to observe and obcy the same; (H n r 4 e Ler r.p ^J s rn4 V a lovl A-PPLICAwr q A/� T/ ����J L1n�0E% STKt�vQS 9ONOi nan/S. a-comrneND AOARO Vim- - ��'�i1rt�!/1/l, Each applioa.nt further states that he is not now the holder of, nor has ha made pp'ieation, f r, nor does he intend to make application for a Federal Retail Dealer's Special fax stamp for the sale of ln.fa Iing liquor. Dated August 4 Ig 82 Fair Board dppliaant_ - P. O. ddd"" RETAIL "ON SALE" fitate of STIiiule ota, McLeod City Hutchinson CODXTYOF.....— _... -- _ ......... - - - -- — --- - - - --- . —_.OF. - -- ------ ... - - -- City Council City Hutchinson Tothe ........... ..... . .. .. .... .. . . ............................ of the.... . ---......................... of......... ............................... ...............•-- ............................... ..........................State of Minnesota: -- - -- - - -- - -- --- BuVc hinson.. Jay, caes .... _ ......... — . -- - - -- ----- - - - - -- hereby appl.i.es_far a license for the term of-- _ -------- — ........ ... from the. -- - -.. ._..._.14th - --- -- -- - - -- -- day of - - -.._ .August.. - - -- ...... - - -- .., 1882 to sell At Retail Only, Non - Intoxicating Malt Liquors, as the same are defined by law, for consumption ' OJI "' those certain promises in city _.___D1 Hutchinson _ -- dejoribed as follows, State Softball Tournaments at Fred Roberts Park at which place said applicant. - ...operate...... the business of and to that end represent. -._and state .... as follows: That said applicant ................ 1s ... a...... ............. ..._ ......... cUizen ......... of tha United State; of food moral oharaater and repute; and ha ....... .... attained the are of fl years; that .. ... ............................................................. proprietor. ..... . of the establishment for which the license will be issued if this application is rranled. That no manufactarer of such non -intozicatinf Malt liquors has any Oumerahip, in irhole or in part, in said business of said applicant.- ....or any interest therein; That said applicant ------ make ...... this application pursuant and subject to all the laws of the State of dfinnesota and the ordinantea and refulaUons of said ............ --....S1xj.—.---------•----- applicable thereto, which are hereby malt a part hereof, and hereby afree.. -..to observe and obey the saint; (E.n r u other Y .u. of )eu1 es •.0..-.) The Jaycees will check all I.D.rs plus watch all the spectators to insure no minors receive any beer. There will be no beer or alcoholic beverages brought into the ball park by team members or the spectators. There will be a Jaycee on the premises at all times who will contact the Police to report any group(s) drinking in the parking lot. We shall secure a two way radio and keep same at the park to get in touch with the police department. Each applicant further states that he is not now the holder of, nor has he made application for, nor does he intend to make application for a Federal Retail Dealer's Special tax stamp for the sale of t:n.taxloatinf liquor. /r/© %0�&f451 9 S L�fST T //�E ��l yGEF.B 7D August 6 l8 82 _77 W1 LL Cold 77W-7- A � 4 Am 47� Hutchinson d ppliaant- F. O. dddr ss _ —•- POLICE DEPARTMENT ASEMORAN DUM TO: Mayor and Council Chief Dean M. O'Borsky LATE August 3, 1982 FOR YOUR INFORMATION SUBJECT: Jaycee's Beer License for Softball Tournament At the July 27th meeting of the Council, upon approval of the Jaycee's beer license, the Council requested that I file a written report following the tournament with a report of any problems. No problems occurred during the tournament which took place on July 31st and August 1st. The Jaycee's called us on at least two occasions regarding the consumption of beer from cans in the parking lot, to which our officers responded. The Jaycee's complied with the basic agreements that we had made prior to the issuance of a license and I have no reason to believe'that they would not continue to comply. There was some misunderstanding by all parties regarding the legality of persons consuming beer in the parking lot of the Fred Roberts Park. My officers have had that clarified by me and I will communicate to the Jaycee's just exactly what the ordinance states and will attempt to have them comply by keeping beer and other spirits from being brought into the park area in the future if more licenses are to be approved. DMO:nb 1. i To: City Council Members From: Lonna Heise, Hutchinson Mall Date: July 27, 1982 Subject: Sigh Permit � ViZ � Developers Diversified and the Hutchinson Mall Merchants would like to have a permit granted to allow us to have a temporary road sign on our property. for six (6) months. Developers feels that at the end of these six months we will have our permenant sign -which is coming from Hibbing, Ym., as soon as it can be redesigned for us. We feel that without a sign in front of the Mall we are losing a condiderable amount of business. Your cooperation in this matter would be greatly appreciated. Lonna Heise Promotion Coordinator Hutchinson Mall q- c. Developers Diversified August 3, 1982 Hutchinson City Clerk City Hall 37 Washington Ave W. Hutchinson, MN 55350 f•.Dr 1982 N RECEIVED Re: The Hutchinson Mall Dear City Clerk: It is my understanding that the malls request for an extended time on our c temporary sign has been entered on the August 10th agenda. So as to clarify the situation, I would like to explain the need for this request. We have a mall in Hibbing, MN in which we are about to finalize a theater lease. This lease will require a new pylon sign which would include a theater marque. When this is completed we will relocate the very attractive Hibbing pylon sign to the Hutchinson Mall. This, of course, would be with the city's prior approval. A pylon sign is a necessary part of a shopping center. We hope to install the quality permanent sign at a savings in the near future. Temporarily we request the councils cooperation in allowing a temporary sign. Please enclose a copy of this letter in the packet of information to the city council. Thank you for your cooperation. Very my yours, Loren Henry LFH /tms Enc. ✓% OLew -lime •34555 Chagrin Boulevard • Moreland Hills, Ohio 44022 • (216) 247 -4700 Branch Offices: 4005 WeMth Street • Suite 223 • Minneapolis, Mlnnesol5 • (612) 929-0618 309 Jerry St Suite 101 • Castle Rock, Colorado 80104 • ( � 108 , - 2 0 DATE: 7 -27 -82 SUBJECT: Proposed sidewalk renovation project - Hassen Street between 1st and 2nd Ave. North TO WHOM IT MAY CONCERN: We, the undersigned have been notified of a possible sidewalk renovation project in the area referred above. It is our feeling this renovation is unnecessary because the area is a low traffic area, it is under consideration for possible improvement and existing sidewalks are not in that bad of shape. Dr. Lester Schuft Al Schramm "� E. Dagget*V Gary Peterson IS teven�Laz Gary " ilkle Madeline Shultz GARY L. PETERSON �3o31 -�z3� Puhhr Accoumm�! �% C, 117 1st Avenue N -E. C" Hutchinson, Minnesota 55350 zt Telephone: (612)879 -2210 N �, c/ July 28, 1982 Mr. Gary Plotz City of Hutchinson 37 Washington Ave. W. Hutchinson, MN 55350 Dear Gary; The city of Hutchinson has marked sidewalks along Hassan street for replacement. The sidewalks marked for replacement are in the area that had been proposed for a possible downtown motel and /or park area along the river. I was approached by yourself, the city consultant and a consulting engineer a while back concerning our building located at 117 1st Ave. NE. You had discussed the possibility of the city of Hutchinson purchasing our building for the proposed projects. You had also discussed the removal of the street and boulevard behind the Hutch- inson Cold Storage Building, and also the possibility of buying the back portion, or approximately 30 feet, or our building which would jut into these projects. We had a permit to pave our parking lot, but you and the city con- sultant suggested we hold off, since these projects could affect our property. It would not seem economical or in the best interest of the taxpayers and the property owners to proceed with the replacement of the sidewalks if there is a possibility that any one of these projects might be implemented. Please review this matter with your staff and submit this information for review to the proper areas. I am not sure what procedure to use in this matter. I hope you will assist in the proper handling. If you should have any questions, please feel free to call my office. Thank you for your time and cooperation. Very truly yours, Gary L. Peterson President Riverview of Hutchinson, Inc. GLP /ms • ��NNESprq \linncsc�ta a Dc°partmcnt of Transportation M Transportation Building FtirpF TaP��� St. Paul, Minnesota 55155 July 30, 1982 Mr. Gary Plotz City Administrator 37 Washington Ave. West Hutchinson, MN 55350 Dear Mr. Plotz: W. t s AUC 1`982 I'lione 296 -8150 Subject: Hutchinson Municipal Airport Maintenance and Operation Cost Reimbursement For The Period July 1, 1981, through June 30, 1982 We are presently holding your request for state reimbursement for maintenance and operation costs incurred from July 1, 1981, through June 30, 1982. Minnesota Statutes 360.305, Subd. 6, states that no state funding may be expended unless the airport is zoned or tne mumcipa i y is making a o s owing To zi zone.-'The last correspondence we received regarding zoning was on December 23, 1981. Your your airport. /Sincerely, �,} C✓w� -ems KJ James D. Groehler, P.E. Regional Airport Engineer Aeronautics Division Room 417 JDG:jmc will be held until a 35 iok An Equal Opportunity Employer Vl aL"�'Lu ss 0 i CITY OF HUTCHINSON POLICE DEPARTMENT INTRA- DEPARTMENTAL MEMORANDUM DATE 7 -27-82 TO. Mayor and Council FROM: Dean O'Borsky SUBJECT:—Emergency vehicle access - Fred Roberts Park Recently it has been brought to my attention that the emergency vehicle entrance to the Fred Roberts Park is being used to park vehicles and motorcycles. As you know, if we have to respond to an emergency call, the ability to drive the emergency vehicle to the area needed is of vital importance. Therefore, I would suggest placing two "No Parking" signs on either side of the entrance at the fence. Two signs and posts to be erected in the parking lot, "No Parking Between Signs." I believe the addition of these four signs would alleviate parking problem at Fred Roberts Park. �fi 7612J 58�7 - -5151 11 V Val` 41YU fcWhis OA/ ' 37 WASHINGTON AVENUE WEST HUTCHI,NSON. MINN. 55350 ME M O R A N D U M DATE: August 10, 1982 --------- - - - - -- TO: Mayor and City Council --------------=----------------- FROM: Marilyn Swanson -------------------------------- SUBJECT: Lund Associates - — -- ---- ---- ------ ---- --- -- - -- -- -- Motion from Minutes of Special Council Meeting held August 4, 1982: Alderman Mlinar moved to engage the firm of Lund Associates to investigate the cost to up -grade the Old Armory. Seconded by Alderman Cruenhagen, the motion unanimously carried. 9- G. a a- OPTION TO PURCHASE Roger M. Mies and Mary Mies, husband and wife; and Roger J. Dummer and Donna S. Dummer, husband and wife, for themselves, their successors and assigns, parties of the first part, being all of the nrestn:: <<.iers of tree tracts of land, hereinafter described, and in consideration of the sum of One Hundred Dollars ($100.00) in cash, paid by the City of Hutchinson, a Municipal Corporation, party of the second part, receipt whereof is hereby acknowledged, do hereby confer upon said party of the second part, their heirs or assigns, an exclusive option to purchse the following described tracts of land situated at 145 2nd Avenue Southwest, Hutchinson, Minnesota and described as: That part of Lots Four (4) and Five (5), in Block Fourteen (14) in the Townsite of Hutchinson, South Half, described as follows, to -wit: Beginning at the Southeast Corner of said Lot 5; thence West, along the South line of said Lot 5, 77 feet; thence North on a line parallel with the East line of said Lots 5 and 4, 99 feet; thence East, on a line parallel with the South line of said Lot 5, 77 feet, to the East line of said Lot 5, and thence South, along said East line of Lots 4 and 5, 99 feet, to the point of beginning. for the purchase price of Forty -five Thousand Dollars ($45,000.00) in cash, without interest thereon, said option being exercisable at any time on or before December 31, 1982. In the event party of the second part exercises this option to purchase said property, written notice thereof shall be given to said parties of the first part, or their agent, by mail addressed to said parties of the first part, or their agent, at the following address: 121 1st Ave. S.E., Hutchinson, Minnesota. As a credit to said purchase price, if said party of the second part exercises the within option, there shall be deducted the sum of One Hundred Dollars ($100.00), the option price herewith receipted. -1- r 9 The optionee may enter upon said property at any reasonable time for the purpose of making soil tests thereof or inspection. Within fifteen days after notice of the exercise of this option, said parties of the first part shall furnish to said party of the second part ubscracts of 'title or registered property certificates to the subject property continued to date, after which said party of the second part shall have fifteen days within which to determine the marketability of the title thereto and close said purchase. In the event that title to the subject property is found unmarketable and cannot be made marketable within sixty days after notice thereof to said parties of the first part, then this agreement shall be void and the option payment thereto- fore made shall be refunded forthwith to said party of the second part. At the closing said parties of the first part shall deliver to said party of the second part a warranty deed conveying marketable title, free from all encumbrances including the full real estate taxes against said property due and payable in the year 1982 and the lien of all special assessments whether levied or pending against said property, subject to the following exceptions: Building and zoning laws, ordinances, State and Federal regulations. Restrictions relating to use or improvement of premises without effective forfeiture provision. Reservation of any minerals or mineral rights to the State of Minnesota. Utility and drainage easements which do not interfere with present improvements. Rights of- tenants. The closing of said sale, in the event the within option is exercised by said party of the second part, shall take place -2- at 121 lst Ave. S.E., Hutchinson, Minnesota, and the mediate possession of the subject property shall thereupon be given to said party of the second part. It is agreed that if the party of the second part, or its assigns, shall fail to exercise this option on or before December 31, 1982 or after ins -;carcise shall fail to pay the balance due on the purchase price in accordance with the terms and conditions herein mentioned, then the party of the second part, heirs or assigns, shall forfeit to said parties of the first part, all sums heretofore paid it and shall be discharged of all of its obligation herein contained. This option shall automatically terminate at 12:01 A.M., January 1, 1983 if not exercized on or before midnight, December 31, 1982. IN TESTIMONY WHEREOF, the parties of the first part do hereby set their hands and seal this day of 1982. Roger M. Mies, party of the first part Mary Mies, party of the first part Roger J. Dummer, party of the first part -3- Donna S. Dummer, party ot the first part CITY OF HUTCHINSON, A Municipal Corporation By: 0 0 REGULAR COUNCIL MEETING WATER 8 SEWER FUND *State Treasurer PFRA Merle Meece %safety glasses Randy DeVries meeting expenses dick Hopp Excavating water main Gridor Construction construction costs Fredricks Farms refund water key deposit No.Central Sec.AWWA registration fees Am. Water Works dues Commissioner of Revenue july sales tax Crown Life Ins. Co. aug. dental insurance Electro Watchman alarm system Envirex Inc. supplies Farm F, Home supplies Feed Rite Controls chemicals GTC parts Gambles oil G $ K Services uniform rental Hutch Leader notice Hutch Telephone phone Hutch Utilities electricity Hutch Wholesale supplies Ind. School Dist. 423 gasoline Junker Sanitation refuse charges Juul Contracting repairs Meeker Washed Sand street materials Finley Mix %safety shoes Nalco Chemical chemicals Plaza OK Hardware supplies Quades repairs etc. Simonson Lbr. supplies State Treasurer PERA State Treasurer Soc. Sec. United Bldg. Centers supplies Van Waters $ Rogers chemicals Xerox typing element GENERAL FUND *State Treasurer PERA *Mn. STate Treasurer boat registration fees Municipal Liquor Store Newton concert Lundahls Catering Newton concert Northstar Fin. Corp. rental of tables Independent Review concert ads Chronicle /Advertiser concert ads Carver Co. News concert ads New Ulm Daily Journal concert ads St. Cloud Daily Times concert ads West Central Tribune concert ads Bernhagen Electric repairs August 10, 1982 $ 304.49 35.00 156.52 140.00 134,520.00 20.00 60.00 15.00 506.47 114.00 180.00 453.00 86.98 484.06 3.70 83.02 115.00 15.38 187.60 11,757.14 23.69 859.69 17,203.20 459.60 537.49 10.00 6919.20 3.40 204.68 28.52 309.76 S33.29 82.04 182.25 16.20 $176,610.37 $ 3931.93 173.00 82.59 80.00 590.25 143.35 120.12 215.84 126.10 444.82 180.95 126.50 // Q , -2- Bills Auto Body repairs on doors & wheels $ 110.00 Carols Cafe prisoner board 45.15 Crown Floral flowers- Gloria Krueger 15.00 Dept. of Public Service 2 pumps tested 24.00 Chamber of Commerce band concert & conference costs 226.00 Hutch Coop 1p gas 7.50 Intl Con£. of Blg. Officials dues 60.00 Lakeside Roller Rink skating receipts 400 184.80 MSF entry fees 177.00 N1n. STate Document Center guidebook to state agencies 10.45 Olson Locksmith door lock 4 keys 38.50 Rickeman Seed Center supplies 280.00 State Theatre aug. office rental 325.00 Visuals 3 posters 22.00 US Vinyl of St. Cloud vehicle repair 90.00 Jeff Luke %safety shoes 18.70 Larry Graf cassett recorder 30.00 Marlys Hoeft rec. supplies 80.27 Nathan Smutka swimming refund 8.00 Robert Miley swimming refund 8.00 Marion Graham baseball refund 15.00 Valaree Ikumnond tournament refund 65.00 Gale Boelter %safety shoes 10.00 Chanhassen Dinner Theatre dinner tickets 644.00 SR. Citizens Club deposit refund 100.00 Transport Clearings freight charges 32.41 Abbott Electronics Inc. 7 tapes 63.00 Am. Linen Supply laundry service 18.26 Am. Welding Supplies tank rental 5.00 Allen Office products office supplies 26.31 Big Bear cable 37.70 Brandon Tire repairs & parts 635.16 Brinkman Studio film 49.80 Carr Flowers flowers- Mrs.S.Webb 11.00 Crow River Vet Clinic boarding dogs 99.50 Coca Cola Bottling Co. arena supplies 190.00 Co. Treasurer dl fees for county 94.50 Crown Life Ins. Co. aug. dental ins. 1378.96 Culligan Water Cond. salt and service 47.00 Crow River Press flyers $ posters- concerts 252.61 Don Streicher Guns organizer 44.20 Dyna Systems parts 92.03 Earl F. Anderson $ Associates signs 16.40 Family RExall Drug office supplies 163.28 Farm g Home supplies 314.41 Floor Care Supply cleaning supplies 104.26 Forbes Auto Store repairs 23.76 GTC parts 363.61 Gambles supplies 65.84 G $ K Services uniform rental 558.12 Hutch Community Hospital 2 blood alcohol tests $ laundry 41.90 Snyder Drug tapes 32.16 Hutch Landscaping tree removal 1515.49 Hutch Leader arena ads 958.80 Huthc Leader publication costs 355.34 Hutch Telephone flex o line for 1982 165.00 -3- Hutch Telephone phone service $ 2292.94 Hutch Utilities electricity 5604.43 Hutch Wholesale supplies 227.13 Ind. School Dist. 423 gasoline,bldg. supervisor,resurface 11,329.54 Ink Spots printing 112.00 Jahnkes Red Owl Newton concert 54.77 Juul Contracting repairs 333.25 James De Meyer office expenses $ batteries 303.45 L $ P Supply repairs F, supplies 54.25 Lamberts Standard Service car washings 15.00 Lloyd Schlueter intown aug. mileage 30.00 Logis computer charges 2323.82 Mankato Mobile Radio repairs 729.90 Marco Bus. Products typewriter servicing 206.39 McLeod Coop Power electricity 181.43 Mn. UC Fund unemployment costs 1478.61 Motorola Inc. maintenance agreement 227.25 Montgomery Wards supplies & repairs 398.84 Marilyn Swanson coffee 5.69 McGravey Coffee police coffee 94.40 Mikes Pro Shop tee shirts 126.00 Northland Beverages arena supplies 362.90 Plaza Ok Hardware supplies 47.38 GAry Plotz aug. intown mileage F ether mileage 190.13 Pikals Music Store supplies 27.98 Quades repairs etc. 136.00 Rockite Silo Inc. supplies 88.20 Schmeling Oil Co. oil 4 grease 308.01 Simonson Lbr. Co. supplies 67.87 Sorensen Farm Supply portable sign 75.00 STandard Printing signs 89.90 State Treasurer PERA 3627.97 State Treasurer Sec. Sec. 4989.38 Saunder Thalden Assoc. services 244.91 Swanke Motors repairs 38.00 James Schaefer salary -city attorney 798.44 Texgas Corp. 1p gas 221.40 Tri County Water Cond. rental & salt 28.60 Tri Co. Umpires umpires 1116.00 Thorsen Campbell auidt -rev. sharing 500.00 Uniforms Unlimited police 44.95 Xerox contract payment $ typing elements 195.16 Wallys Tire supplies 105.00 Wigen Chev. Co. repairs $ supplies 420.59 Wm. Mueller $ Sons street materials 373.25 $ 56,791.74 I. -4- BOND FUNDS Fire Hall Bond Consolidated FreightWays freight charges 261.02 1981 Bond Fund J. W. Hanson est. #6 -final 24,030.84 Wm. Mueller $ Sons est. #5 -final 38,784.47 1982 Bond Fund Wm. Mueller & Sons street materials 3092.78 MUNICIPAL LIQUOR STORE Twin City Wine Co. wine & liquor 2092.60 Ed Phillips $ Sons wine $ liquor 788.33 Old Peoria Co. wine $ liquor 1178.17 Griggs Cooper & Co, wine & liquor 2267.07 Ed Phillips $ Sons wine & liquor 1351.69 Twin City Wine Co. wine & liquor 561.54 Griggs Cooper $ Co. wine $ liquor 1399.15 $ 9,638.55 The Minnesolo DeFFrDrrnent of Enerqy, Planning E Devebomen- August 6, 1982 Mr. Gary Plotz AU G 1982 RECEIVED er____ City Administrator City Hall U Hutchinson, Minnesota 55350 PIL /l°/� //1� Attention: Mr. Bruce Ericson FOR YOUR INFORMATION RE: FY 1983 LAWCON /LCMR Application - North Park (Phase II), City of Hutchinson, McLeod Dear Mr. Plotz: The initial review of applications for 1983 State Legislative Commission on Minnesota Resources (LCMR) grants -in -aid and Land and Water Conservation ( LAWCON) funds have been completed. This review was made in accordance with state administrative rules and federal law. Representatives from this office, the Department of Natural Resources and the regional development commission serving your area participated in the review. Competition for the limited available funds was very keen, of 205 applications received only 67 can be recommended for funding. Unfortunately your application did not rank high enough to be recommended for further grant consideration this year. Key factors taken into consideration in the review and subsequent ranking included the outstanding natural, scientific, cultural, historic, and educational values of the project, its ability to provide multipurpose recreational opportunities, and the scarcity of similar facilities within the general vicinity. A list of those projects recommended for FY 1983 financial assistance is available upon request. You may want to retain your copy of this year's application in the event that you decide to apply for funds for this project sometime in the future. If more grant dollars are available then, we may be able to recommend more projects for financial assistance. If you desire additional information regarding your current application or would like assistance on a future application, please contact the Parks and Recreation Grants Section of this office at 612/296 -4703. We thank you for your interest in these programs and are sorry that your application did not rank high enough for further consideration this year. Sincerely, Leland E. Newman, Director Office of Local Government LEN:jee Planning Division 100 Capitol Square, 550 Cedar Street, St. Paul, MN 55101 612- 296 -3985 x� July 28 1982 1 ✓re�a ✓ e e0 ti5267 9acioN ti JUL 1982 N N RECEIVED Mr. Gary Plotz �! BY_ City Hall Hutchinson, MN 55350 Dear Gary: FOR YOUR INFORMATI As you are aware, our clients, Art Bretzke and Shelby Svendsen, own the property referred to as the Bretzke Building on the corner of Washington Avenue East and Hassan Street. This property consists of the existing building and bare land totalling approximately three city lots and is listed for sale at $225,000. This location would be ideal for the city to enlarge its off -sale liquor location. our clients may be interested in a property exchange in connection with these properties. The city has previously expressed an interest in this property for off - street parking facilities. Please contact me at your earliest convenience so we might discuss this in further detail. Thank you. Very truly yours, Thomas J. Savage TJS:sb CC: Mr. James DeMeyer, Mayor /�:i ✓ii ivl �.�vna� .7. (-�. �u(t�i�r.L- -n. .7�nn�.�fa J::�il • / � /_�/ .J•!i -� %� l� (512) 587 -5151 MY OF NUTCA"IfISON 37 WASHINGTON AVENUE WEST HUTCHINSON, MINN. 55350 July 30, 1982 Mr. Thomas J. Savage Curtis M. Bradford Realty 135 Third Avenue S.E. Hutchinson, MN 55350 Dear Tom: I am in receipt of your letter of July 28, 1982 regarding the Bretzke Building. All negotiations for parking options /purchase have been turned over to a Coun- cil Committee of Mayor DeMeyer and Alderman Ken Gruenhagen. I have provided the Committee with a copy of the July 28 correspondence. Mayor DeMeyer stated he would follow -up the correspondence. Sincerely, CITY OF HUTCHII�NSON - � W" yL� V Gary D. Plotz City Administrator GDP: ms Savings &Loan Association July 30, 1982 Mr. Jim DeMeyer, Mayor City of Hutchinson Hutchinson, MN 55350 Dear Mr. DeMeyer: i 227 %lain Street South, Hutchinson. MN 55350 -0309 Telephone (612) 557 -2000 2G v" C�3 3,982 N RE LD FOR YOUR INFORMATION I am writing in regard to our telephone conversation of July 30, 1982, concerning the property owned by First State Federal located at the corner of Second and Hassan Street. First State Federal would consider an offer of $175,000, subject to the City of Hutchinson assuming all existing and pending assessments levied against this property and the City of Hutchinson agreeing to assume all the terms and conditions of the leases which are outstanding on this property; copies of which have been sent to the City of Hutchinson. This property is described as Parcel A and Parcel B in the appraisal done by C. R. Pelton and Associates in May of 1982. J and B House Counselors have terminated their lease so there would be no renter in this property at this time with the exception of Cameo Dry Cleaners. According to the Pelton appraisal, there would be very minimal costs involved regarding leasehold improvements. I hope that some decision can be reached in the very near future to help facilitate any terms and conditions for any additional renters for this building. If you need any additional information, please do not hesitate in contacting me. CordialA./y, ah v. P. & Secretary First federally chartered savings and loan association in the State HE HUTCHINSON SAFETY COUNC FOR YOUR INFORMATION The Hutchinson Safety Council met July26th, 12 noon, at the Fire Hall. There,.were 12 members present. President Myron Johnson opened the meeting with a silent prayer The June minutes were approved as read. No bills were presented. Old Business: Fair booth - -a motion was made and seconded that the safety vouncil buy 7 or 8 fire extinguishers or about $80.00 worth, to give away at the fair. If they cost more some members will donate the balance of the cost. Also the county sheriffs water patrol will be giving away life jackets. Mike Monge and Carol Haukos will make the posters for advertising displays and prizes. Myron Johnson will take care to the film projector and screen. New Business: Les Smith: The alley behind Park Towers -high rise, 3rd avenue and 2nd Avenue, has bushes that obstructs the view and cars cannot see pedestrians, this on the west side of the alley. Carol Haukos will check into this and see what can be done. Les Linder: Also some trees on 2nd Avenue SE by Jerabek idachine Shop need to be check and cut back, as they obstruct the road. Myron Johnson received and displayed literature and photos from the Minnesota Safety Council and announced forthcoming MN, safety seminars. Guy Gield talked about farm accidents and s discussion was held on accidents, pesticides and chemicals. Mike Monge and Sherfff Duane Kopesky will be on KDUZ radio this fall regarding farm accidents and farm use of chemicals. The next meeting will be August 23rd, at the fire hall. The meeting was adjourned by motion. Submitted by: ;Syron Johnson, President Loretta F. Pishney, Seer. Treas. Treasurer's Report: Balance on hand July 1, 1082 150.91 Deposits: none Disbursements: none. Balance on hand July 31, 1982 150.91 0 SENIOR NEWSLETTER VOLUME 1 NO. 7 BLOOD PRESSURE CLINIC AUGUST, 1982 SENIOR CENTER PHONE NO. 587 -6564 NUTRITION PHONE NO. 587 -6029 The McLeod County Public Health Nursing Service will be at the Senior Center on Wednesday, August 18th. Hours of the screening clinic are from 8:30 to 11:30 AM. The intent of the blood pressure screening program is to screen individuals to detect any unknown change in blood pressure that warrants medical attention. For any homebound persons in the county, a nurse is available to check their blood pressure in thier home for a minimal fee. Feel free to contact the Nursing Service at the following number for more infor- mation: 587 -4680. *********** * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ** CHANHASSEN DINNER Tlli,:ATRF. 'o-ere are still a few vacant; slots for our trip to the Chanhassen :i_ °_r..ner Theatre. The trip is scheduled for Au-, zt 25th to see the play "THE MUSIC MAN ". The $20.00 cost covers transportation, dinner and the play. You still have a few days to register. AUGUST GUEST SPEAKERS ** *Wednesday, August 11 - Representatives from the new Hutchinson Health and Fitness Club will be at the Center. Their present- ation begins at 11:30 A.M. Extra seating is available at the west end of the multi- purpose room. ** *Tuesday, August 17 - Reverend John Melchert will be speaking on TRANSPORTATION. This presentation begins at 11:30 A.M. Extra seating will be available at the west end of the dining room. ** *Tuesday, August 31 - Reverend John Melchert will be speaking on MEDICARE. His presentation begins at 11:30 A.M. There is extra seating available in the west end of the multi - purpose room. THE LITTLE WHITE GATE BY: MARIE RICHTER EVERGREEN APARTMENT RESIDENT There's a little white gate in a picket fence 'Twixt my next door neighbor and me And it's covered with morning glories Flanked by blue bells and rows of sweet pea. And when I get lonesome and she has nothing to do And we feel that we'd both like to chin I walk cross my yard to the picket fence And the little white pate lets me in And there's nary a latch to be lifted And nary a key to lock For the little white gate swings both my way and hers And there's no need for either to knock. So come sunshine or shadow, sorrow or joy A symbol of friendship 't.caill be This little white gate in the packet fence 'Twixt my next door neighbor and me. 0 FROM SONJA... Exercise is very important to try to re- establish a complete range of motion. That doesn't mean you should induce long continual strain. We encourage a moderate amount of nonstrenous, non- weight bearing exercises. Getting the joints mobile is our main purpose. Somplete rest will further stiffen joints, and over exercise will make them sore. We feel that a balance of rest and a simple range of motion exercises is best. Moderate excercise every day will impart strength to the muscles, which without exercise become flabby and enfeebled. Join us every Thursday at 11:30 A.M. in the Senior Center lounge. Sonja Wendroth SENIOR CITIZENS' CLUB NEWS Leona Frank from Central Minnesota Senior Federation will be speaking on "No Cost, Low Cost Medication" at the August 3rd Senior Citizens' Club Meeting. Remember the Senior Citizens' Club Pie and Ice Cream Social in the park on August 12th. Each member of the Club is requested to bring a pie or pay $2.50 to the Club. Please have your pies to the park by 6:00 P.M. Remember the trip to Chanhassen on August 25th; co-sponsored by the Senior Citizens' Club and the Senior Center. Submitted by: Mabel Welling 14ANT ADS Have you anything for sale, rent, wanted [o buy, what have you? Notify the Seninr t 587 -6564. We will post it in the Sl?Nl!1R NEWSLETTER, FOR SALE: Girls 26" Columbia Bicycle. Very Good Condition. Call. Ai Mahs at 587 -2049 for more informai..ion. 49 SENIOR CENTER CARD TOURNAMENT The Senior Center is scheduling a card tournament beginning Thursday, August 12. Anyone interested in playing WHIST ort PINNOCLE is encouraged to join us. Prizes will be awarded every month to the top players of each game. At the end of each year, a tournament will be held with all the monthly champions. The second Thursday of each month wi}1 be designated as CARD TOURNAMENT. We will begin at 1:00 P.M. You need not play every month to join in. If you have any questions or would like to sign up before August 12th, call the Senior Center office or drop in sometime. HAPPINESS IS LIKE POTATO SALAD - WHEN YOU SHARE IT WITH OTHERS, IT'S A PICNIC!! *�k:e * &it *in4a4 �k *ic *� *>k sYik�k ie 3caF9ert �>ti teic:t� is k:k �: *ieR i:* SENIOR CENTER COOKBOOK Start copying those recipes''' We are in the process of putting together a cookbook with collections of your favorite recipes! A recipe drop -box is at the Center for you to drop your recipes into, or you can leave them in the Center's office or the Hutchmobile office. The categories we hope to include are: pies, cookies, bars, salads, appetizers, refreshments, meats, casseroles, desserts, calves, micro -wave recipes, Christmas bakeries, cunning tips, and anvt!:ing else. yon may think of. Make sure your name is on each recipe; T•TB encourage you to submit as many reci.pe.s as you wish. If there are duel. care recipes, the first one turned in will be used. We'll need lots of help putting thecoo'�L�nk together - (Incs anyone T ype? T vnu'd 1_ike to help w'.th he roolcbook, by sure torl I Barb Haugen, Senior Center Cc,ordtnatnr know. There Is ._ c =nni-tee b ip;; ;ormcd at 1-2ic time. Hopefully, we'll have the hook ready to sell by Christmas time. 0 HUTCHINSON'S NUTRITION PROGRAM[ The Ijutsi *_ion Site is located on the first floor of the Evergreen Apartment Complex. Meals are served every noon, Monday through Friday. This is not a welfare program.t It is sponsored by the Region 6E Community Action Agency, and made possible by a grant from the Federal governemnt through.the Minnesota Board on Aging. Participants donate what they feel they can afford. Joan Phillips is the local Site Supervisor. Any person age 60 and over, and spouses under 60 are eligible to participate in the program. Persons under age 60 must pay the total meal cost; cost at the present time is $2.25. The success of the program is dependent on the volunteer services of the participants. They assist by setting tables, serving meals and kitchen clean up. Participants are largely responsible for the social aspect of the program. Bingo games are a weekly feature. There is a birthday party every month. There are many special events, such as the recent style show and the second annual talent show. The participants are served a nutritious well - balanced meal in pleasant surroundings. They acquire a host of new friends, from every walk of life. They receive health and welfare counseling and information, plus referral to other social services when necessary. You may become a part of this program by dialing 587 -6029 weekdays, between the hours �r 10:00 A.M. and 2:00 P.M. to register for dinner on the following day. Submitted by: Lilly M. Erickson McLEOD COUNTY BOARD ON AGING The McLeod County Board on Aging held their quarterly meeting right in Hutchinson at our Senior Center on July 21. The McLeod County Fair was the main topic of conversation. Responsibliities were given to each community. The next County meeting will be held during the month of October. Keep informed by calling the Senior Center at 587 - 6564. (3) 0 * ** CAN YOU HELP ?? * ** ** *The Senior Center needs typist for the cookbook. Also, volunteers to help sort through the recipes. If you are interested, please call Barb at 587 -6564 or leave a message. ** *McLeod County Historical Society needs seamstresses to sew the costumes to be used in the "Old Time" Photo Booth at the fair. Patterns and material will be provided by the Historical Society. Patterns will be for one -size fits all. Anyone interested in donating their time to this project should contact Joann Christensen immediately at 587 -2109 during the afternoon. ********** * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ** "The glass wasn't even ck an —it was stained," ** *Look for the Nutrition Menu next month! Beginning in September, the SENIOR NEWS- LETTER will contain the month's menu for the Nutrition for the Elderly Program ********** * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ** TIP When sewing where the thread will show, remember that thread a shade darker than the material will almost always be invisible on the finished seam. 9 (4) 0 WHAT IS AARP? Today AARP is the largest association of retired persons in the world. We believe that creative energy is ageless and that the best way to maintain independence, purpose and dignity in the later years of life is through useful activity and service to others. Our motto is "To Serve. Not To Be SErved ". The purposes of AARP are: 1. To enhance the quality of life for older persons. 2. To promote independence, dignity and purpose for older persons. 3. To lead in determining the role and place of older persons in society. 4. To improve the image of aging. Now that the National Retired Teachers Association has affiliated with AARP, we have a total membership of approximately 14 million persons and it has been emphasized that if we all got out vote, we could easily swing an election. In the next newsletter, we will tell you of all the services available to you as a member of AARP. Submitted By: Vi Mahs, Secretary TWINS BALL GAME /SHOPPING SPREE SUMMARY Sixty-seven ballgame and shopping fans had a great day. The buses left the Senior Center at 9:30 A.M. and returned to Uutchinson at 5:30 P.M. It stirred slot of excitement here at the Center - these are a few of the comment we heard: Red V atsch - "A real nice trip - to see cur sew domed stadium; and we won the game too!" Lit W.nterfeldt - "It was just wonderful, A. enjoyed it so much! We could see every - tl}ing so well!" Reverend Melchert - "Great fellowship on the bus! Enjoyed the Jolly Troll!" RaL h Boller - "The shopping was great. Ge had a vary good dinner. We went all 111:er . i'(�a:tic,n dm-nitown Minneapolis!" AUGUST RECIPES This month's recipes have been submitted by Helen Kenney and Lydia Rolandtr. Any- one wishing to submit a recipe to he used in the SENIOR NEWSLETTER, should submit it to Barb Haugen, Senior Center Coordinator by the 20th of each month. DILL PICKLES Wash and put pickles in fruit jars with dill. Heat 13 cups of water, 1 cup salt and 1 cup vinegar. Bring to boil and povrover pickles and seal. LYDIA'S QUICK COFFEE CAKE Cup Margarine 30 Minutes 1 Cup Sugar 3500 Oven 1 teaspoon Cinnamon 11 teaspoon salt 2 Cups Flour 1 teaspoon Soda teaspoon Baking Powder 1 Cup Sour OR Buttermilk Butter and flour pan. Either 9x9 or 12 cupcakes. Sprinkle � cup sugar and cinnamon mixture over the top. Yum Yum. ******** * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ** The Hutch Rhythmaires, also known as the Senior Citizen Rhythm Band, will be busy this month of August. August 6th they'll be at the Emmanuel Lutheran Church in Brownton to perform for the Potluck Ladies Aid Meeting. August 23rd we will play at the McLeod County Fairgrounds by the Administration Building at 12:30 P.M. It's Senior Citizens' Day at the fair so if you are there come over and listen. August 28th the band will show their talents at the Norwood Flower Show. Anyone interested in joining us, should watch future issues of the SENIOR NEWS- LETTER as to practice time and dates. * * *Be sure to pick up each monthly SENIOR NEWSLETTER. They are available at the Senior-Center and at the following locations: RED OWL, CITY HALL, HUTCH TELEPHONE CO., SNYDER DRUG, FAMILY REXALL, and SUPER VALU. 1 ��3 Absent: Lilah Buhr, Stewart* Representing: McLeod County Judy Johnson, Litchfield* Litchfield Linda Ulrich, Renville* Renville To be appointed Bird Island Kathy Matson, Asst. Dir., CRRL *Excused absence Chairman Mankell called the meeting to order. Jeanette Buchanan was appointed secretary pro tem. Mathews /Stranberg moved to approve June minutes, Carried. Sanders / Hinseth moved to accept June treasurer's report. Carried. It was noted $60,000 payment from local governmental jurisdictions had been received since Treasurer's Report had been printed. Director's Report: a. The Annual Staff Tour will be held on July 29 and will be a visit to DeSmet, South Dakota, the site of the Laura Ingalls Wilder books. b. A volunteer workshop was held in Willmar on June 23. It was helpful and well attended. c. Clippings from various area newspapers were circulated. Many articles contained publicity on the Summer Reading Program. d. The Public Library Newsletter was passed around. e. New mileage reports (July - December, 1982) were distributed. f. The statistical report was reviewed. g. Kathy Matson is presently at the ALA Convention in Philadelphia. Hebrink /Stranberg moved approval of bills. Carried. Committee and Project Reports: a. COM Catalog and OCLC terminal -- The Governing Board of SAMMIE meets on July 27 to make the final decision. Natalie Quinn will be CRRL's representative on the SAMMIE Advisory Committee. b. Budget Committee -- Next meeting July 26 at Willmar Library at 7 p.m. CROW RIVER REGIONAL LIBRARY BOARD FOR YOUR INFORMATION t July 12, 1982 ( The Crow River Regional Library Board met on Monday, July 12, 1982, at the Meeker tCounty Courthouse. Present: Dorothy Hinseth, Sunburg Representing: Kandiyohi County Wayne Hebrink, Renville '.' Kandiyohi County Orlynn Mankell, New London Kandiyohi County Jean Stranberg, Atwater Kandiyohi County Ellen Moench, Eden Valley " Meeker County Harriet Berg, Dassel Meeker County Jeanne Lundstrom, Cosmos Meeker County George Jepson, Winsted " McLeod County Earl Mathews, Glencoe McLeod County Lionel Barker, Glencoe Glencoe John Horrocks, Hutchinson Hutchinson Albert Linde, Hutchinson Hutchinson Delores Condon, Litchfield Litchfield Leroy Sanders, Willmar " Willmar Jeanette Buchanan, Willmar " Willmar John Esbjornson, Willmar " Willmar Burton Sundberg, Director, CRRL Absent: Lilah Buhr, Stewart* Representing: McLeod County Judy Johnson, Litchfield* Litchfield Linda Ulrich, Renville* Renville To be appointed Bird Island Kathy Matson, Asst. Dir., CRRL *Excused absence Chairman Mankell called the meeting to order. Jeanette Buchanan was appointed secretary pro tem. Mathews /Stranberg moved to approve June minutes, Carried. Sanders / Hinseth moved to accept June treasurer's report. Carried. It was noted $60,000 payment from local governmental jurisdictions had been received since Treasurer's Report had been printed. Director's Report: a. The Annual Staff Tour will be held on July 29 and will be a visit to DeSmet, South Dakota, the site of the Laura Ingalls Wilder books. b. A volunteer workshop was held in Willmar on June 23. It was helpful and well attended. c. Clippings from various area newspapers were circulated. Many articles contained publicity on the Summer Reading Program. d. The Public Library Newsletter was passed around. e. New mileage reports (July - December, 1982) were distributed. f. The statistical report was reviewed. g. Kathy Matson is presently at the ALA Convention in Philadelphia. Hebrink /Stranberg moved approval of bills. Carried. Committee and Project Reports: a. COM Catalog and OCLC terminal -- The Governing Board of SAMMIE meets on July 27 to make the final decision. Natalie Quinn will be CRRL's representative on the SAMMIE Advisory Committee. b. Budget Committee -- Next meeting July 26 at Willmar Library at 7 p.m. Communications: a. Regional Systems Directors will be meeting August 5 -6 at Itasca. one item to be addressed will be legislative program for MLA. b. Long Range Plan and application for aid were filed with OPLIC. A letter was received from OPLIC stating that they were complete and accepted. Unfinished Business: a. Minnesota Trustees Manual -- Horrocks /Barker moved that Mr. Sundberg assign one section to be reviewed and discussed at every Board meeting. Sections to be reviewed will be noted on agenda. Total review will be completed by the end of December, 1982. Carried. New Business: a. Revised Staff Policy Manual -- John Horrocks, Chairman of this committee, presented changes in the new Manual. Discussion ensued regarding several aspects of the Manual. On page 13 -14, "Workmen's Compensation" benefits were questioned. Director Sundberg will obtain further information on this and will report at August meeting. Board members are to review entire manual for final approval at the August meeting. b. Projected and Preliminary Budget Figures for 1983 -- The City of Willmar had re- quested this as soon as possible. Sanders /Hebrink moved Mr. Sundberg make projec- tion for 1983 to submit to City of Willmar and explain it is strictly a staff projection (not approved by Board). Carried. (Note: In contacting the City Auditor, Mr. Sundberg was informed that the mayor's proposed budget for 1983 had already been prepared including a 9.26% increase for CRRL.) c. Finance Committee -- Linda Ulrich was appointed to Finance Committee to fill vacancy. Adjournment. Jeanette Buchanan Secretary pro tem � <r • ' • July 1982 • CROW RIVER REGIONAL LIBRARY i Sd.71:' - 31.2,951.00 Treasurer's Report LeRoy Sanders, Treasurer 7.437.69 ' 2,449.12 16,574.94 59.205 ?9,010.00 INCOME THIS MONTH YEAR TO DATE BUDGET Balance 8(23,157.65) 8 (8,340.87). S Receipts: 21.79'{ .C7 40.50 State/Federal Aid 6,314-04 46,618.00 1139000.00 Kandiyohi County 182126.00 541378.00 72,504.00 Meeker County 189488.06 33,488.66 509233 -00 .McLeod County 229056.76 221.056.76 55. 074.00 McLeod County (1981 Receivable) 5,432.08 -0- Willmar 14,830.25 449490.75 59,321.00 Litchfield 7,697.00 23,091.00 309788.00 Hutchinson 109996.75 32,990.25 43,987.00 Glencoe 5,036.50 152109 -50 20,146.00 Bird island 3,048.00 6,096.00 Renville 1,674.50 5,023.50 6,698.00 Petty Cash 1,869.20 151362.13 22,000.00 Gifts 50.00 424.66 -0- Other 416.06 1,585.87 10,000.00 Total Receipts: 8101,241.68 $303,099.16 5489,847.00 From 1981 Budget 5,000.00 TOTAL RECEIPTS & BALANCE: 8 78,084.08 $294,758.29 $494,847.00 i1 TO YTO ; OF EXP - CURPENT ACCT GROUP... .0r) .00 .00.S .00 L 3R ARY - PERSONIL SERVICES SALARIES_ _ -HO SP TTAI ncUIC CI INSUR -:aCE -� PERA ANJ SOCIAL SECURITY MATE RIACS BOOKS - ADULT - BOOKS.- CHIL04EK PERIODICALS PAMP4LETS �• AUDIT VISUAL P4ITIT SHG5 - 3LNOING 27,003.33 1 ?3.734.09 Sd.71:' - 31.2,951.00 . 11347.2 9 ....._._. . -. -q1t:36.97 _ 7.437.69 ' 2,449.12 16,574.94 59.205 ?9,010.00 ACCT GROUP.:. 30,804.78 209.795.99 59.27% 355,951.00 ACCT GROUP... 4,909.94 22,331.67 50.63Y. 1,125.5= 5,699.01 42.14: - 169.44 - 7.437.69 15. 60'4 Loa .0.) 215.94 103.47.'. 99. L2 445.32 11.22% .00 •00 .0.7k .00 130.72 21.79'{ .C7 40.50 13.594 6,314-04 .. .._ 36,555.35 _ 42-S8% 4' „056.00 1',.000.00 3,000.0^ 200.00 4,000.00 500.07 60C.O0 300.CC 7i.266.D1 1 : AVITEWNCE - 1 _CUSTODIAL SUPPLIES A•`.0 SERVICES 387.94 44.086 TELE ?fl VE._f TERe,IhA� -_ - ...431.61 2,955.50 _...-- .62.897. .... _..- 4,700.00 VE4ICLF OP9RATL0% - IIICL I`LS 1,093.63 5.97C.85 54.29; 1L,000.30'1 ACCT G30UP... an +ex SUPPLIES L PA VITING PQOM iTINr AN.) PFOGRAW4ING SILi4G= 460 MEETINGS NEM3- cnS4LPS INSUiANCE EOUIPNENT QEYTAL AU01TING SERVICES BOOKFE ?IMG SEnVTCE$ COM CATALOG CAPITAL 2UTLAY -__. 1,536.91 9,314.31 $6.134 16,580.1.0 .. .0� _. 842.03 - 6,129.39 55.71: 11,000.00 _ 7.700.00. .00 377.93 25.20% 1,500.00 _ 556.07 3.215.85 73.09t 4.400.00 .. .0� _. 945.L2 3.383.11 67.562 5,000.00 _ 7.700.00. .00 300.00 50.90% _.. 600.00 _.._.___.._ 164.50 -_.._ .. - .._,.__..._ 2,048.50 ._._ 19.3 a'i- 5,200.00' 676.57 5.673.73 53.445 11,00000 .00 990.00 104.21!_ 950..00 225.70 1,575.00 58.33% -2r70,9.00 ! .00 .0') .002 3.000.00 i ACCT GROUP... 3,409.22 23,808_51...._.52_70. 451 35U.00 EOUIPPENT 645.82 _3RANCH AvOT.I7.ATI I% FUND .00 VE4ICLF AMORTIZATION FUND .00 ----- SAVIN COPIER - .00 ACCT GROUP... 645 -.32 _ . _._.. . __.. O_RG. TU7AL_.._.. 42_.75).77 Reversal (voided check) Investments redeemed 46,100.00 Investments purchased 979614.06 Ending cash balance (16,180.80) 1,178.66 .00 ..._ .__ .00 -.. 4,539.56 279,2?2.57 123.96 248,000.00 279,780.48 (16,180.80) 29.47; 4.000.OG .00% _ 700.00 .. .0� _. .- 3,000.00' .00: .00 74.27k _ 7.700.00. 56.44% 44i,,447.OG Savings Pass Book: 848,785.35 as of July 31, 1982 2,926.64 Amortization Funds (not including interest but including 5519711.99 repayment of $140.00 per month) 0 E AGENDA SPECIAL MEETING - HUTCHINSON CITY COUNCIL WEDNESDAY, AUGUST 4, 1982 1. Call Meeting to Order - 7:00 A.M. 2. Old Business Deferred from August 2, 1982) ,/a. Consideration of Sale and Development Agreement between City of Hutchinson and Hutchinson S &L Rehab, Limited Partnership Vb. Consideration of Property Option with Park Square Co. Jc. Resolution No. 7237 - Resolution Relating to $135,000 General Obligation Tax Increment Bonds of 1982; Fixing the Form and Details, Providing for the Execution and Delivery Thereof and the Security Therefor Jd. Consideration of Negotiation Approach of Obtaining Prices Within the Options for the Parking Program (Requested by Aldermen John Mlinar and Ted Beatty) Consideration of Establishing August 15, 1982 As Time Limit to Obtain Neces- sary Parking Options (Requested by Aldermen John Mlinar and Ted Beatty) Jf. Consideration of Obtaining A Legal Opinion On How to Pre -Pay the Outstanding 1968/1970 Parking Bonds from the 1981 Parking Fund (Requested by Aldermen John Mlinar and Ted Beatty) 1g. Consideration of Authorizing Staff to Contact the County for Time Extension to Certify the Parking Program Assessments (Requested by Aldermen John Mlinar and Ted Beatty) )h. Consideration of Obtaining A Legal Opinion On How to Use the 1981 Parking Fund to Make Improvements on City Right -of -Way (Example: Dick Smith Proposal) (Requested by Aldermen John Mlinar and Ted Beatty) �. Consideration of Recommendation of Old Armory Committee for the City to Retain An Architect to Investigate Cost and Provide Data on Alternate Costs of Remodeling Old Armory for A Variety of Uses (Requested by Aldermen John Mlinar and Ted Beatty) 3. Adjournment 0 0 WHEREAS the Hutchinson Downtown Retail Association is dedicated to the development and promotion of the downtown area, WHEREAS the Hutchinson Downtown Retail Association values a positive community image, WHEREAS the Hutchinson Downtown Retail Association works to promote a better Hutchinson, Be it therefore resolved that the Hutchinson Downtown Retail Association favors the ' development of the S & L project as a benefit to the citizens of Hutchinson and the surrounding area. due- We urge a decision, one way or the other, so that our City Council can resume its responsibilities with other matters relating to city government. �,( � �^i.C.- .Ql.�(:-�L °�'r+��� -lG'�, �.�, �ao"c "w� G�'ti �- cJ�✓�Oz..'�+��r/�. -'s.. I�Z.I�%. +...���.i. �.. s • SALE AND DEVELOPMENT AGREEMENT relating to DEVELOPMENT DISTRICT NO. 4 CITY OF HUTCHINSON, McLEOD COUNTY, MINNESOTA by and between CITY OF HUTCHINSON, MINNESOTA and HUTCHINSON S &L REHAB, LIMITED PARTNERSHIP A MINNESOTA LIMITED PARTNERSHIP —A- p • 0 THIS AGREEMENT, made and entered into as of this 4th day of August, 1982, by and between the CITY OF HUTCHINSON, a public corporation of the State of Minnesota (hereinafter called the "City "), and HUTCHINSON S &L REHAB, LIMITED PARTNERSHIP, a Minne- sota Limited Partnership (hereinafter called the "Developer "); WITNESSETH THAT, in the joint and mutual exercise of their powers, and in consideration of the mutual covenants herein con- tained, the parties hereto recite and agree as follows: Section 1. Recitals. 1.01. Establishment of Project and Plan. The City Council of the City, by its Resolution No. 7140 dated and Resolution No. 7234 dated has estab- lished a development district in the City known as the Tax Incre- ment Development District No. 4 (the "District "), has approved a Development Program for the District (the "Development Program "), has designated the District as a tax increment financing district, and has approved a Tax Increment Financing Plan for the District (the "Financing Plan "); all pursuant to and in accordance with Minnesota Statutes, Chapter 472A and Sections 273.71 to 273.78 (the "Acts "). 1.02. Implementation. The Council also, by its Resolution No. 7140 and Resolution No. 7234, authorized and directed the City officials to take all actions necessary to implement and carry out the Development Program, subject only to such approval by the Council as may be required by the Act. 1.03 Acquisition of Property. The City, by its Resolution No. 7140 and Resolution No. 7234 has determined that it is neces- -1- sary and in the best interests of the City and its inhabitants for the City to purchase certain real property located in the District described in the attached Exhibit A (referred to as the "Property "), and has authorized its officers to acquire the Property. The City has entered into an Option Purchase Agreement dated May 20, 1982 (the "Option Purchase Agreement ") with Park Square Company, a General Partnership comprised of Ronald J. McGraw and Edward McCormick (the "Seller "), to purchase the Property, a duplicate original of which has been furnished to the Developer. 1.04. Option Purchase Agreement Conditions. Under the Op- tion Purchase Agreement the City has agreed to pay to the Seller, as and for the purchase price, the sum of $160,000.00, but only from the following sources when received by the City: (1) $90,000.00 thereof from the proceeds of an issue of approximately $135,000.00 General Obligation Tax Increment Bonds when, as and if issued by the City to finance the cost of the District in accord- ance with the Acts; and (2) $70,000.00 thereof from the amount required to be paid by the Developer to the City under Section 2.01 of this Agreement. 1.05. Sale of Property. The City has determined that it is necessary, in order to accomplish the purposes specified in and to carry out the Development Plan, for the City to sell the Property to the Developer for development in accordance with the Tax Incre- ment Financing Plan with Amendments (hereinafter referred to as the "Plan ") and to finance the $90,000.00 difference between the cost of purchasing the Property and the proceeds of sale thereof to the Developer by the issuance of the Bonds in accordance with the Financing Plan; all in accordance with the Acts, and on the -2- terms and conditions specified in this Agreement. 1.06. Intention of Contract. The City is desirous of con- tracting with the Developer to purchase and develop the Property in accordance with the Development Program, as specified in this Agreement; and the Developer is desirous of contracting with the City for this purpose. 1.07. Authority. Each of the parties has authority to enter into this Agreement and to take all actions required of it hereby, and has taken all actions necessary to authorize the execution and delivery of this Agreement. 1.08. Developer. For purposes of this Agreement, "Developer" includes James M. McClure and Richard L. McClure, doing business as Hutchinson S &L Rehab, Limited Partnership, and any person or entity to whom the Property or any of its rights therein or here- under are transferred or assigned, as hereinafter permitted. Section 2. Sale of Property. 2.01. Agreement to Sell; Price. The City agrees to sell the Property to the Developer, and the Developer agrees to purchase Property from the City, subject to the conditions for termination of the sale and purchase hereinafter set forth, for a Purchase Price of $70,000.00. The purchase price shall be paid on or be- fore , 1982, but only as and when directed by the City by seven (7) days written notice to the Developer. Ex- cept as provided herein, if the City determines not to issue the Bonds, the City shall have the right to terminate this Agreement and the purchase and sale of the Property on December 31, 1982, by giving to the Developer written notice of its intention to terminate at least seven (7) days prior to such date; provided that in such event the Developer shall nevertheless have the -3- i right to complete the purchase of the Property from the City by paying to the City on or before January 31, 1983, the $70,000.00 Purchase Price therefor plus the sum of $90,000.00, which the City shall use to pay the amount owed to Seller for the Property under the Option Purchase Agreement. Developer shall, within twenty (20) days after receipt of notice of intention to termin- ate from the City, give notice to the City of its intention to complete the purchase of the Property, and failure to give such notice as required shall have the effect of terminating the Developer's right to complete the purchase of the Property. In the event the City gives to the Developer notice of its intention to terminate this Agreement and the purchase and sale of the Property and the Developer does not exercise its right to complete the purchase of the Property, the Developer shall forth- with authorize, execute and deliver to the City a Warranty Deed conveying to the City its entire interest in the Property and any improvements constructed thereon, and except as provided below,this Agreement shall terminate and neither party shall have any further rights or obligations hereunder. Notwithstand- ing such termination the rights and obligations of the City and the Developer under Section 6.06 hereof shall continue in full force and effect. In the event the Developer exercises its right to complete the purchase of the Property as provided in this Section, upon completion of such purchase this Agreement shall terminate and, except as provided below, neither party shall have any further rights or obligations hereunder. Notwithstanding such termina- tion the rights and obligations of the City and the Developer under Section 6.06 hereof shall continue in full force and effect. Z� 0 0 2.02. Deed. The City shall convey title to the Property to the Developer or its designee by Warranty Deed. Such conveyance and title shall, in addition to all conditions, covenants, and re- strictions set forth or referred to elsewhere in this Agreement, be subject to: (A) Easements for utility purposes over the Property as shown on the duly recorded plat thereof. (B) An easement for sanitary sewer purposes on the Property as shown on duly recorded-plat thereof. (C) Easements for drainage and utility purposes on the Property as shown on the duly recorded plat thereof. (D) Easements for roadway purposes on the property as shown on the duly recorded plat thereof. (E) Protective covenants of record. (F) Pending special assessments. (G) This Agreement. 2.03 Time and Place of Closing. Conveyance of title to the Property shall take place on 1982, or a date prior thereto mutually satisfactory to the City and the Developer. The closing shall be held at the principal office of the City. 2.04. Taxes. The ad valorem taxes levied on the Property which are payable to date have been paid. The Developer shall pay all ad valorem taxes and special assessments levied on the Property which are payable subsequent to the date of this Agree- ment, during the term of this Agreement. 2.05 Recording of Deed. The Developer shall within ten (10) days after the closing, file and have recorded in the office of the Recorder of McLeod County, the Deed conveying the Property from the City to the Developer and this Agreement, and shall pay -5- 0 0 all costs of such recording. 2.06. Title. The City does not warrant the title to the Property except that it warrants that as of the closing date there will not exist on the Property any lien or encumbrance arising out of any act by the City, except such rights as the Seller may have to require the title of the Property to be returned to it if the purchase price due under the Option Purchase Agree- ment is not paid when due. The City shall have no obligation to provide to the Developer title insurance with respect to the Property. Section 3. Developer Undertakings. 3.01. Construction and Value of Facilities. In consideration of the sale by the City to the Developer of the Property for the Purchase Price of $70,000.00, the Developer agrees to construct (or cause to be constructed) upon the Property the Facilities des- cribed in the attached Exhibit B, which together shall have an Assessor's Market Value, as determined by the County Assessor of McLeod County in accordance with applicable law, of not less than $608,300.00 as estimated for 1983 -1984. The Developer shall not through (a) tax abatement proceedings, and /or (b) any proceeding commenced pursuant to Minnesota Statutes, Chapter 278 or any similar law, and /or (c) willful demolition of Facilities, cause the Asses- sor's Market Value of the Facilities, and any other improvements constructed, to fall below such amount. Except as expressly pro- vided otherwise herein, no provision of this Agreement shall re- strict the Developer from the construction of additional improve- ments on the Property. The Facilities, and any additional improve- ments to be located upon the Property during the term of this Z. 0 0 Agreement, shall be constructed in accordance with this Section and Section 3.02. 3.02. Plans and Specifications. The Developer will develop the Property and construct the Facilities in accordance with plans and specifications which conform to the Tax Increment Development Program, this Agreement and applicable state and local laws, or- dinances, rules and regulations. Plans and specifications for such development and construction shall be submitted to and sub- ject to approval by the City. I£ the plans and specifications comply with this Section 3.02, the City shall approve them in writing. If the plans and specifications do not comply with this Section 3.02, the City shall notify the Developer of this fact and provide the Developer with a list of specific objections within thirty (30) days after their receipt by the City. The Developer shall within forty -five (45) days of receipt of such rejection and list of specific objections, submit new or corrected plans and specifications to the City which comply with this Sec- tion 3.02; provided that in the event plans and specifications which comply with this Section 3.02 are not so resubmitted, this Agreement may be voided at the option of the City. In the event the plans and specifications are so resubmitted by the Developer, but are not approved or returned with a specific list of objections by the City within fifteen (15) days of such resubmission, they shall be deemed approved. After approval of the plans and specif- ications by the City (the "Plans and Specifications "), any change in the Plans and Specifications which substantially alters the construction of the Facilities shall be submitted to and subject to approval by the City. -7- 3.03. Construction Contracts. • The Developer shall enter into one or more contracts with one or more general contractors (the "Contractors ") providing for the construction of the Facilities. On or before , 1982, or such later date as is agreed to by the City, the Developer shall have entered into contracts for the construction of the Facilities having a cost of not less than $947,000.00. The Facilities shall be completed on or before June 31, 1983, and the contracts for their construction shall so provide. The completion date under such contracts may be made subject to Unavoidable Delays as hereinafter defined, in which event the completion date may be extended by the period of such Unavoidable Delays. 3.04. Access to Property. The Developer agrees to permit and does permit the City or its officers, employees, agents or contractors access to the Property for any purpose deemed neces- sary by the City for carrying out the provisions of this Agree- ment. This access shall also include inspection of the work on the Facilities by representatives of the City, mortgagees or any governmental authority or agency. 3.05. Construction Progress Report. Subsequent to the con- veyance of the Property to the Developer, and until construction of the Facilities has been completed in accordance with Section 3.02, the Developer shall, upon written request of the City, make, in such detail as may reasonably be required by the City, and forward to the City, a written report as to the actual pro- gress of such corms ruction; provided, however, that such request by the City shall be no more often than monthly. am 0 3.06. Completion Certificate. Upon completion of the Facilities in accordance with Section 3.02, the City shall furnish to the Developer an appropriate completion certificate so certify- ing. The certification by the City shall be (and it shall be so provided in the certification itself) a conclusive determination of satisfaction and termination of the covenants in this Section 3 with respect to the obligations of the Developer to construct the Facilities and the dates of completion thereof. The certificate shall be in the form attached hereto as Exhibit C. Within thirty (30) days after written request by the Developer, the City shall provide to the Developer such certification or a written statement indicating in adequate detail how the Developer has failed to com- plete the Facilities in accordance with this Agreement, or is otherwise in default, and what measures or actions must be taken to complete the Facilities in accordance with this Agreement. 3.07. Enforcement; Damages. The Developer acknowledges the right of the City to enforce the terms of this Agreement against the Contractors and the Developer, by action for specific performance or damages, or both, or by any other legally authorized means. The Developer also acknowledges that its failure to perform any or all of its obligations under this Agreement may result in a default by the City with respect to the Bonds and substantial damages to the City; that in the event of default by any Con- tractor or the Developer the City may commence legal action to recover all damages, losses and expenses sustained by the City; and that such expenses may include but are not limited to the reasonable fees of legal counsel employed with respect to the enforcement of this Agreement. Neither the Developer nor any 0 0 agent or officer or employee of the Developer shall be liable to the City for any expense or loss incurred by the City as a result of any Contractor's default in the construction of Facilities in excess of the liability of the Contractor to the Developer for such default. The Developer agrees that time is of the essence in the completion of this Agreement and that should Developer fail to complete the Facilities in accordance with Section 3.02 by the time specified in Section 3.03 plus any periods of extension granted by Unavoidable Delays, or to have otherwise qualified for a Certificate of Completion as per Section 3.06, Developer shall pay to the City the sum of $90,000.00, which sum is hereby, in view of the difficulty in estimating such damages, agreed upon, fixed and determined by the parties hereto, as the liquidated damages that the City will suffer by such default and not by way of penalty. Said liquidated damages shall not affect the City's right to seek other damages allowable under the terms of this Agreement. In order to secure said liquidated damages Developer agrees to provide a Letter of Credit drawn upon a lending institu- tion acceptable to the City or a Security Bond issued by a Bonding Agent acceptable to the City, either of which shall be in the face amount of $90,000.00 payable to the City. The right of the City to obtain said liquidated damages shall terminate upon the issuance of the Certificate of Completion contemplated in Section 3.06. Section 4. Use of Property; Financing and Liens. 4.01 General Restrictions. The Developer agrees for itself, and its successors and assigns, and every successor in interest to, or any part thereof, that the Developer and its successors -10- and assigns shall: (A) Devote the Property to, and only to, and in accordance with the uses specified in the Development Pro- gram, as amended; (B) Not discriminate on the basis of color, creed, national origin or sex in the sale, lease or rental, or in the use or occupancy of the Property or the Facilities, or any part thereof; (C) Not cause the Property or the Facilities to be removed from the public tax rolls or to become exempt from assessment for general ad valorem real estate taxes by reason of any conveyance, lease or other action. 4.02. Covenants. It is intended and agreed, that the covenants provided in Sections 3.01 and 4.01 shall be covenants running with the land binding to the fullest extent permitted by law and equity for the benefit and in favor of, and enforceable by, the City, its successors and assigns, and any successor in interest to the Property, or any part thereof, against the Developer, its successors and assigns, and every successor in interest to the Property or any part thereof or any interest therein, and any party in possession or occupancy of the Property or any part thereof; provided further that breach of these covenants shall not result in a reversion of title to the Property to the City. The covenants provided in sec- tions 3.01 and 4.01 shall remain in effect only so long as any of the Bonds are outstanding. 4.03. Restrictions on Conveyance; Financing. The Developer will not make or suffer to be made, any sale, assignment, convey- ance, lease or transfer in any other form this Agreement or the -11- Facilities, or any part thereof or any interest therein, or con- tract or agree to do any of the same, except as provided in Section 4.04 within four (4) years from the date of this Agreement without express approval of the City. 4.04 Financing of the Property and Facilities. It is under- stood that the Developer may finance the construction of the Facilities by means of a mortgage if the lender acknowledges and agrees to the terms of this Agreement. 4.05. Notice of Default. Whenever the City shall deliver any notice or demand to the Developer with respect to any breach or default by the Developer in its obligations or covenants under this Agreement, the City shall at the same time forward a copy of such notice or demand to each holder of any permitted mortgage, lien or other similar encumbrance at the last address of such holder shown in the records of the City. Each such holder shall have the right, at its option, to cure or remedy such breach or default and to add the cost thereof to the mortgage debt and the lien of its mortgage; provided, that if the breach or default is with respect to construction of the Facilities, nothing contained in this Agreement shall be deemed to permit or authorize such holder, either before or after foreclosure or action in lieu thereof, to undertake or continue the construction or completion of the Facilities without first having expressly assumed the ob- ligation to the City, by written agreement satisfactory to the City, to complete the Facilities in the manner provided in this Agreement. Any such holder who shall properly complete the Facilities shall be entitled, upon written request made to the City, to a certification or certifications by the City to such -12- L • effect in the manner provided in Section 3.06. 4.06. No Merger. No provision of this Agreement is intended to or shall be merged by reason of the Deed(s) transferring the title to the Property from the City to the Developer or any suc- cessor in interest, and the Deed(s) shall not be deemed to affect or impair the provisions and covenants of this Agreement. 4.07. No Discrimination. The Developer for itself, and its successors and assigns, agrees that in the construction of the Facilities the Developer will not discriminate against any employee or applicant for employment because of race, color, religion, sex or national origin. 4.08. Destruction of Facilities. So long as any of the Bonds are outstanding, in the event of destruction of any Facilities upon the Property which reduces the Assessor's Market Value of the Property and the Facilities below $608,300.00, the following shall apply: (A) The Developer shall as soon as reasonably pos- sible, and in any event on or before the second succeeding December 31 following such destruction, time being of the essence, repair, build or replace the damaged Facilities to such extent as will cause the Assessor's Market Value of the Property and the Facilities to equal or exceed the Assessor's Market Value thereof as finally determined most recently prior to such destruction; or (B) If such repair, rebuilding or replacement is not completed by such date, the City shall have the rights specified in Section 3.07. 4.09. Insurance. During the term of this Agreement, until -13- • • a completion Certificate has been furnished under Section 3.06 hereof, the Developer shall maintain (or cause to be maintained) with reputable insurance company or companies licensed to do busi- ness in Minnesota, such insurance covering the Facilities in such amounts as are customarily carried on such properties. Without limiting the generality of the foregoing, the Developer specific- ally shall maintain (or cause to be maintained) direct damage in- surance covering fire and extended coverage perils, and special extended coverage perils in an amount equivalent to the actual replacement cost of the building and contents therein, and archi- tectural and engineering fees without deduction for depreciation. Coverage on new construction shall be maintained on a completed value basis during the course of construction. The policies shall neither be subject to a co- insurance clause nor contain an agreed amount clause, and shall be written with a deductible clause not exceeding $5,000.00. During the remaining term of this Agreement (after a comple- tion Certificate has been furnished under Section 3.06 hereof), the Developer shall procure fire insurance with extended coverage endorsement upon the Facilities in an amount equal to eighty per cent (80 %) of the insurable value of the buildings with a deduct- ible clause not exceeding $5,000.00. Policies of fire insurance procured pursuant to this Section shall assure and be payable to the Developer, and shall provide for release of insurance proceeds to the Developer for restoration of loss. The City shall be furnished certificates showing the existence of such insurance. In case of loss, the Developer is hereby authorized to adjust the loss and execute proof thereof in the -14- name of all parties in interest. The Developer shall annually file with the City a schedule describing all such policies in force, including the types of in- surance, names of insurers, policy numbers, effective dates, terms of duration or any other information the Developer deems pertinent. Such list shall be accompanied by an Officer's Certi- ficate stating that, to the best of the knowledge of the signers, such insurance then in force complies with this Section. 4.10. Condemnation. In the event of condemnation of any or all of the Property, other than by the City, which reduces the Assessor's Market Value of the Property and the Facilities below $608,300.00, the Developer shall take the actions specified in Section 4.08, paragraph (A). If such actions are not performed as required the City shall have the rights specified in Section 3.07; or if such actions cannot be performed, the Developer shall pay to the City, an amount of the condemnation proceeds thereof equal to the lesser of (a) 25% of the interest that has come due on the Developer's Bonds (as defined in Section 5.02) from their date of issue, less any Bond Guaranty Payments previously made by the Developer pursuant to Section 5.02 which were used to pay in- terest on the Developer's Bonds; plus 25% of the principal amount that has become due on the Developer's Bonds less any Guaranty Payments previously made by the Developer pursuant to Section 5.02 which were used to pay or discharge the principal on the Developer's Bonds; or (b) the amount required, together with the moneys then on hand in the bond fund or any reserve fund for the Bond, to dis- charge all Developer's Bonds then outstanding which shall not ex- ceed 25% of the principal amount then due on the Developer's Bonds less any Guaranty Payments previously made by the Developer pursu- -15- 0 ant to Section 5.02 which were used to pay or discharge the prin- cipal on the Bonds. The Developer agrees that the amounts payable to the City under this Section will not exceed the City's contri- bution to the value of the Developer's Property and the Facilities through acquisition of the Property, and will be included in the value legally compensable upon any such condemnation. Any payment made under this Section shall extinguish the Developer's respon- sibility to make Guaranty Payments under Section 5.02 to a like extent. Section 5. Security for Bonds. 5.01. Tax Increments; Use and Investment. The Developer acknowledges the right of the City to pledge the Tax Increment derived from the District to the payment of principal of and interest on the Bonds; to deposit the Tax Increment in the fund established for the payment of the Bonds for this purpose not more often than twice yearly; and to invest or direct the invest- ment of such Tax Increment in accordance with Minnesota Statutes, Section 475.66. 5.02. Partial Bond. For purposes of this Agreement, "De- veloper's Bonds" means the Bonds issued by the City with respect to the Tax Increment Project. It is estimated that the principal of and interest on the Bonds will come due on the dates specified in the attached Exhibit D, and the Developer agrees to pay to the City at the times and subject to the limitations herein provided, the amount needed in addition to the Tax Increment to be derived from the District, and any interest earnings thereon available to the City, to pay the principal of and interest on the Developer's Bonds when due. The Developer agrees to pay such amount to the City immediately upon receipt of a request therefor from the City; -16- • • provided that (i) in no event shall the total amount paid to the City pursuant to any such request to pay principal on the Developer's Bonds exceed at any point in time 25% of the amount of principal that has become due and payable on the Developer's Bonds and (ii) in no event shall the total amount paid to the City pursuant to any such request to pay interest on the Developer's Bonds exceed at any point in time 25% of the interest that has become due and payable on the Developer's Bonds. Section 6. General Provisions. 6.01. Conflicts of Interest; Representatives Not Individually Liable. No member, officer, or employee of the City shall have any personal interest, direct or indirect, in this Agreement, nor shall any such member, officer or employee participate in any decision relating to this Agreement which affects his or her personal in- terests or the interests of any corporation, partnership, or associ- ation in which he or she is, directly or indirectly, interested. No member, officer, or employee of the City or the Developer shall be personally liable to the Developer or the City, as the case may be, in the event of any default under or breach of this Agreement by the City or the Developer, or for any amount which may become due to the Developer or the City or for any obligation issued under the terms of this Agreement. 6.02. Rights Cumulative. The rights and remedies of the parties of this Agreement, whether provided by law or by this Agreement, shall be cumulative, and the exercise by either party of any one or more of such remedies shall not preclude the exer- cise by it, at the same or different times, of any other such remedies for the same default or breach or or any of its remedies -17- 0 E for any other default or breach of the party. No waiver made by either such party with respect to the performance or the manner or time thereof, of any obligation under this Agreement, shall be considered a waiver with respect to the particular ob- ligation of the other party or a condition to its own obligation beyond those expressly waived in writing and to the extent there- of, or a waiver in any respect in regard to any other rights of the party making the waiver of any obligations of the other party. Delay by a party hereto instituting or prosecuting any cause of action or claim hereunder shall not be deemed a waiver of any rights hereunder. 6.03. Unavoidable Delays. Wherever used in this Agreement, the term "Unavoidable Delays" shall mean a delay resulting from a cause over which the party required to make performance does not have control and which cannot or could not have been avoided by the exercise of reasonable care, including but not limited to acts of God, accidents, war, civil unrest, embargos, strikes, unavailability of raw materials or manufactured goods, litigation and the delays of the other party or its contractors, agents or employees in the performance of their duties under or incident to this Agreement. 6.04. Recording. The Developer shall cause this Agreement to be recorded in the office of the Recorder of McLeod County, Minnesota immediately following the recording of the Deed convey- ing title to the Property to the Developer or its designee. 6.05. Override Provision. Notwithstanding any other pro- visions of this Agreement to the contrary, nothing herein is in- tended or shall be interpreted to give or convey to the City any interest in the Property after the transfer of title to the -18- 0 0 Property to the Developer, or in the Facilities, or maintain any action to recover the Property or the Facilities from the Developer; and nothing herein is intended or shall be interpreted as requiring the Developer to specially guaranty the payment of more than any amount due under the provisions of Secton 5.02. 6.06. Indemnification. Buyer agrees to indemnify and hold the City harmless from and against all costs, expenses, damages or losses, including reasonable attorneys fees, resulting from or arising out of this Agreement and the transactions contemplated thereby. Section 7. Administrative Provisions. 7.01. Notices. All notices, certificates or other communica- tions required to be given to the City and the Developer hereunder shall be sufficiently given and shall be deemed given when delivered or deposited in the United States mail in registered form with postage fully prepaid and addressed as follows: If to the City: If to the Developer City of Hutchinson 37 Washington Avenue West Hutchinson, Minnesota 55350 Jim & Dick McClure, d /b /a Hutchinson S &L Rehab, Limited Partnership Highway 7 West Hutchinson, Minnesota 55350 The City and the Developer, by notice given hereunder, may desig- nate different addresses to which subsequent notices, certificates or other communications will be sent. 7.02. Binding Effect. This Agreement shall inure to the benefit of and shall be binding upon the City and the Developer and their respective successors and assigns. 7.03. Severability. In the event any provision of this Agreement shall be held invalid or unenforceable by any court of -19- 0 Ll competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof. 7.04. Amendments, Changes and Modifications. This Agreement may be amended or any of its terms modified only by written amend- ment authorized and executed by the City and the Developer. 7.05. Further Assurances and Corrective Instruments. The City and the Developer agree that they will, from time to time, execute, acknowledge and deliver, or cause to be executed, acknow- ledged and delivered, such supplements hereto and such further instruments as may reasonably be required for correcting any in- adequate or incorrect description of the Property, or for carrying out the expressed intention of this Agreement. 7.06. Execution in Counterparts. This Agreement may be simultaneously executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. 7.07. Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota. 7.08. Captions. The captions or headings in this Agreement are for convenience only and in no way define, limit or describe the scope or intent of any provisions or Sections of this Agreement. IN WITNESS WHEREOF, the City has caused this Agreement to be executed in its corporate name by its duly authorized officers and sealed with its corporate seal; and the Developer has caused this Agreement to be executed in its name, as of the date first above written. -20- 0 0 CITY OF HUTCHINSON (SEAL) By Its Mayor And Its City Clerk HUTCHINSON S &L REHAB, LIMITED PARTNERSHIP (SEAL) And STATE OF MINNESOTA) )SS COUNTY OF McLEOD ) On this day of August, 1982, before me, a Notary Public within and for said County, appeared James G. DeMeyer and Gary D. Plotz,.to me personally known,who, being by me duly sworn, did say that they are respectively the Mayor and City Clerk of the City of Hutchinson, and the instrument was signed and sealed in behalf of said municipal corporation by authority of its City Council, and they acknowledged that said instrument was the free act and deed of said muncipal corporation. Notary Public, McLeod County, MN STATE OF MINNESOTA) )SS COUNTY OF McLEOD ) On this day of August, 1982, before me, a Notary Public within and for said County, appeared James M. McClure and Richard L. McClure, d /b /a Hutchinson S &L Rehab, Limited Partnership, to me per- sonally known,who, being by me duly sworn, did say that they are respectively Limited Partners in Hutchinson S &L Rehab, Limited Part- nership, and the instrument was signed and sealed in behalf of said Limited Partnership, and they acknowledged that said instrument was signed by them as their free act and deed. Notary Public, McLeod County, MN -21- *0P`J' is CONTRA.4 FYNTRTT A For and in consideration of the sum of__.__Gaz ------------ Eundred an"' -- ----- --- -- ---- CC /1CJ - -- --- -Dollars -- .... ---... _. . to me in hand paid, the receipt whereof is hereby acknowledged, I hereby grant unto The City of Hutchinson -- -- ---- --- --------------- -- -- -- - -- -- -- -- .an- - - - -------- Option for-- ---- -ninety -- - -09 -days from the ---------------- - 2`Jt------- -- ------- -- -- - ------ --day of--------� Y-- ----=- --- '�._I9_82 --- to purchase, for the sum of---.One Hundred Thousand and 00 /100-- :r_-- _-�OLL.4RS ( ;_160, 000.90 the following described lands ---------------------------- — -------------------------------- - -------------------- ------ __ - - -- situated -in the County of___..kiCLeod___ -- ------ ------- --- -- -----and State o _.... f Minnesota M e t -- - ------- _to -utit: Lot Ten (10), Block Thirteen (13), South Half of City of Hutchinson Seller to pay first half of 1982 taxes payable and buyer to pay the second half of 1982 taxes payable. upon the following terms and conditions, to -wit: This option may be renewed for an additional ninety (90) days upon mutual agreement of both parties should substantial pro- gress be made on the project known as "The S & L Building Re- development Project". Said . City of Hutchinson -.. --- ----------- - ---... -- - -- -- --- - -- shall signify his intention to take said property by due notice in writing, and shall perform the con- ditions and comply with the terms of this Option, all within the time above specified; and a failure to give such notice, and comply with the terms and perform the conditions hereof (except as herein- after provided), within the time specified, shall terminate this Option, and all rights thereunder without further act or notice whatsoever, time being the essence of this agreement. thirty (30) In case said notice shall be given in due time, but transaction is not completed, then_- __. --_. - -_ days shall be given in which to examine titles, make conveyances and close the transaction. In Presence of City of Hutchinson to each and all of its terms. CITY -22- 1 Y I L♦ � .- .1....�dV1! -i � C ^L' =ty of I _ On this. _day Oj__.. —_ —_ before -_-_-2Oth Tz D. 19_— me, and for said County and State, personally appeared ___ ------- --_-_________----_—___--__________-_____--- me known to be the same person described in and who executed the foregoing instrument, and acknowledged that he executed the same as-- ?Ag_jree act and deed. --� J. FLYi.i. NO*. 1uL O rC- MINYE$QTA _. _L_- __- ;,;aEnp Couly 6. Notary Public McLeod Count MN Eayves Se r? � —_ —_ — l —___ -1 ________ _________ — __._____.� t " _r! 26. �!d3 . -lean pf__MZNNi S_( TA County of_ �ScLSOD On this 20th _— _dayoj— May _-- =_ - - -, 19 —, before me a Notary_— — within and - or said County, personally appeared and dames �. Deh3eyer Gay D_Plotz -- - - - - -- - -- -- - to me personally known, who, being each by me duly sworn _did say thatt! tth1ey QQr,e,ar spee- liuely the_ FSaYR WtSMX and the__ Clerk of the ,corporartR amed ig i o ng instrument, and that the seal afAxed to said instrument is the Vao�f Th of said corpora% n, and that said instrument was signed and sealed in behalf of said q%rporaiio>Pi by author- ity of its 1SWi3 g ___Cites! Council and ,,,,A Gary - -__ J10h2 _ — ____acknowied>fed said instrument to be the free act and deed of Irporation. - - / I L c�Z� -!✓ [ </!Z.C1- _------------ - No& ry Public, McLeod County, MN - - - -- -- ----------- -- --- - - -- -- -- - - - --- - --------- --- - - r Jot-EEN FU RUNKE NE[KER COUNT% 1iOTARY PUBLIC- MINN[pTA µ {GOMIA 1WoN"Pis" NoY.zs; loss h1N�M�H/.1IyW��_ o � U I ' I � i - • EXHIBIT B Description of Facilities -23- :1 FYHTRTT C Completion Certificate The undersigned, being the duly qualified and acting City Clerk of the City of Hutchinson, Minnesota, hereby certifies pursuant to Section 3.06 of the Purchase and Development Contract, dated as of , 1982 by and between the City and (the Developer), that the Developer has completed the acquisition and construction of the Facili- ties (as defined in said Contract) in accordance with said Contract. Dated: , 1982 -24- City Clerk Hutchinson, Minnesota EXHIBIT D Estimated Debt Service ($135,000) Schedule on Developer's Bonds (To be provided by Ehlers & Assoc.) -25- r­1 Proposal III age fJo. of Pages ATKINSON BLACKTOP SERVICE PHONES: FMng 1612) 693 -3960 DRIVEWAYS - STREETS - PARKING LOTS Residence (612) 693.6096 Sox 538 LITCHFIELD, MINNESOTA 553SS PROPOSAL sueMITTED TO PHONE DATE Fs d N C_ 4. t 7 STREET town 1 <� JOB NAME \f Yti `W '7`t 1 c \ aAJl- 3 s . CITY, STATE AND ZIP CODE JOB LOCATION ` ARCHITECT DATE OF PUNS r JOB PHONE We hereby submit specifications and estimates for: r 10 V ?.v Z e � x. o '3 C L.- � Z o ,y8ra a q, go 9qU .�Jo ailo�k :� UU p \ \� a • L 3411 � ue�J y 23 / 7- S '7V �l.act �rn,Net�s � � �D °+v � �1S.00 / 4, Vi aa� m. N s O 17.,JO. ear o /uuo. &,o rah; w, ►0• L (� /Zy.�v /�f 420.00 Of fraVVElf hereby to furnish material and labor — complete in accordance with%above specifications, for the sum of: 1 No � `e •+ / dollars (E ( i 8 . a p Payment to be made as follows: 1, ") , a l All material is guaranteed to be as specified. AN work to be completed In s workm millis manner according to standard practices. Any alteration or division from above specifics. Authorized tions involving extra costs win be executed only upon written orders, and will become an Signature extra charge over and above the estimate. All agreements contingent upon strikes, accidents or delays beyond our control. Owner to carry fire. Tornado and other necessary insurance. NO !: This proposal may be by it .446. days. Our warkers are fully covered by Workmen's Compensation Insurmce. withdraw s not accepted within X, Arrpftiup at f rapaoid —The above prices, specifications and conditions are satisfactory and are hereby accepted. You are authorized Signature to do the work as specified. Payment will be f made as outlined above. 7--_ Date of Acceptance: fi1 30--.. Signature l F Hul Ony)n. PJnnepta 55350 • (612) 587-5252 - -- FOR YOUR INFORMATION, July 7, 1982 Ken Merril, Treasurer City of Hutchinson 37 Washington Ave. West Hutchinson, MN 55350 Dear Ken, The Chamber-of Commerce requests $175.00 of the remaining $500.00 in the budgeted amount for band concerts and promotions:_ This $175.00 will help pay printing costs to update the tourist brochure and help with the band concerts. At the present time, the Band. Concert series is still $204.00 in the red. Any help that can be received to help us finish the full summer series would be appreciated. We are hoping that the final concert, the Over 60 Band, will not have to be cancelled due to finances. Please pass this above request on to the city council. Thank you for your consideration. Sinc ari Coston���CJ Chamber of Commerce AGENDA SPECIAL MEETING - HUTCHINSON CITY COUNCIL MONDAY, AUGUST 2, 1982 1, Call Meeting to Order - 7:00 A.M. 0.2- of Sale and Development Agreement between City of Hutchinson and Hutchinson S &L Rehab, Limited Partnership Consideration of Property Option with Park Square Co. J4. Consideration of Award of Bid for $135,000 Tax Increment Financing (G.O. Tax Increment Bonds of 1982) _,/5. Consideration of Pledge Agreement for S &L Project V�. Consideration of Construction Loan Agreement for S &L Project ✓7. Consideration of Combination Mortgage and Security Agreement and Fixture Financing Statement for S &L Project A. Consideration of Loan Agreement for S &L Project A. Consideration of Assignment of Rents and Leases for S &L Project dl O. Consideration of Form of Resolution 11. Consideration of Negotiation Approach of Obtaining Prices within the Options for the Parking Program (Requested by Aldermen John Mlinar and Ted Beatty) 12. Consideration of Establishing August 15, 1982 As Time Limit to Obtain Necessary Parking Options (Requested by Aldermen John Mlinar and Ted Beatty) 13. Consideration of Obtaining A Legal Opinion On How to Pre -Pay the Outstanding 1968/1970 Parking Bonds from the 1981 Parking Fund (Requested by Mlinar & Beatty) 14. Consideration of Authorizing Staff to Contact the County for Time Extension to Certify the Parking Program Assessments (Requested by Aldermen Mlinar and Beatty) 15. Consideration of Obtaining A Legal Opinion On How to Use the 1981 Parking Fund to Make Improvements on City Right -of -Way (Example: Dick Smith Proposal) (Requested by Aldermen Mlinar and Beatty) 16. Consideration of Recommendation of Old Armory Committee for the City to Retain An Architect to Investigate Cost and Provide Data on Alternate Costs of Remodel- ing Old Armory for A Variety of Uses (Requested by Aldermen Mlinar and Beatty) 17. Adjournment NOTE: BRING NECESSARY DOCUMENTS CONTAINED IN JULY 27, 1982 CITY COUNCIL PACKET OLD ARMORY RESEARCH COMMITTEE JULY 29, 1982 The Old Armory Research Committee met on July 29, 1982 to discuss question(s) which could be placed on the ballot for referendum. After lengthy discussion, the Committee concluded that more exact cost figures were needed before the question could be placed before the voters. Motion was made by Lyle Koehler to recommend to the City Council that the city retain an architect to investigate cost and provide data on alternate costs of remodeling the Old Armory for a variety of uses. The motion was seconded by Donn Hoffman and carried unanimously. The Committee further recommended that the City Council not expend an inordinate amount of money for this investigation. After the architect's data becomes available, the Committee would meet again to review it. SALE AND DEVELOPMENT AGREEMENT relating to DEVELOPMENT DISTRICT NO. 4 CITY OF HUTCHINSON, MCLEOD COUNTY, MINNESOTA by and between CITY OF HUTCHINSON, MINNESOTA and HUTCHINSON S &L REHAB, LIMITED PARTNERSHIP A MINNESOTA LIMITED PARTNERSHIP 0 THIS AGREEMENT, made and entered into as of this day of 1982, by and between the CITY OF HUTCHINSON, a public corporation of the State of Minnesota (hereinafter called the City), and HUTCHINSON S &L REHAB, LIMITED PARTNER- SHIP, a Minnesota Limited Partnership (hereinafter called the Developer); WITNESSETH THAT, in the joint and mutual exercise of their powers, and in consideration of the mutual covenants herein contained, the parties hereto recite and agree as follows: Section 1. Recitals. 1.01. Establishment of Project and Plan. The City Council of the City, by its Resolution No. 7140 has established a development district in the City known as the Tax Increment Development District No. 4 (the District), has approved a Development Program for the District (the Development Program), has designated the District as a tax increment financing district, and has approved a Tax Increment Financing Plan for the District (the Financing Plan); all pursuant to and in accor- dance with Minnesota Statutes, Chapter 472A and Sections 273.71 to 273.78 (the Acts). 1.02. Implementation. The Council also, by its Resolution No. 7140 , authorized and directed the City officials to take all actions necessary to imple- ment and carry out the Development Program, subject only to such approval by the Council as may be required by the Act. 1.03. Acquisition of Property. The City, by its Resolution No. 7140 , has determined that it is necessary and in the best interests of the City and its inhabitants for the City to purchase certain real property located in the District described in the attached Exhibit A (referred to as the Property), and has author- ized its officers to acquire the Property. The City has entered into an Option Purchase Agreement dated July 9 , 1982 (the Option Purchase Agreement) with Park Square Company, A General Partnership comprised of Ronald J. McGraw and 0 Edward McCormick (the Seller), to purchase the Property, a duplicate original of which has been furnished to the Developer. 1.04. Option Purchase Agreement Conditions. Under the Option Purchase Agree- ment the City has agreed to pay to the Seller, as and for the purchase price, the sum of $160,000.00, but only from the following sources when received by the City: (1) $90,000.00 thereof from the proceeds of an issue of approximately $135,000.00 General Obligation Tax Increment Bonds when, as and if issued by the City to fi- nance the cost of the District in accordance with the Acts; and $70,000.00 thereof from the amount required to be paid by the Developer to the City under Section 2.01 of this Agreement. 1.05. Sale of Property. The City has determined that it is necessary, in order to accomplish the purposes specified in and to carry out the Development Plan, for the City to sell the Property to the Developer for development in accor- dance with the Tax Increment Financing Plan with Amendments (hereinafter referred to as the Plan) and to finance the $90,000.00 difference between the cost of pur- chasing the Property and the proceeds of sale thereof to the Developer by the issuance of the Bonds in accordance with the Financing Plan; all in accordance with the Acts, and on the terms and conditions specified in this Agreement. 1.06. Intention of Contract. The City is desirous of contracting with the Developer to purchase and develop the Property in accordance with the Development Program, as specified in this Agreement; and the Developer is desirous of contract- ing with the City for this purpose. 1.07. Authority. Each of the parties has authority to enter into this Agree- ment and to take all actions required of it hereby, and has taken all actions necessary to authorize the execution and delivery of this Agreement. -2- 0 0 1.08. Developer. For purposes of this Agreement, "Developer" includes James M. McClure and Richard L. McClure, and Hutchinson S &L Rehab, and any person or entity to whom Property or any of its rights therein or hereunder are trans- ferred or assigned, as hereinafter permitted. Section 2. Sale of Property. 2.01. Agreement to Sell; Price. The City agrees to sell the Property to the Developer, and the Developer agrees to purchase Property from the City, subject to the conditions for termination of the sale and purchase hereinafter set forth, for a Purchase Price of $70,000.00. The purchase price shall be paid on or before August 20 , 1982, but only as and when directed by the City by 7 days written notice to the Developer. Except as provided herein, if the City determines not to issue the Bonds, the City shall have the right to terminate this Agreement and the purchase and sale of the Property on December 31 , 1982, by giving to the Developer written notice of its intention to terminate at least 7 days prior to such date; provided that in such event the Developer shall nevertheless have the right to complete the purchase of the Property from the City by paying to the City on or before January 31 , 1983 the $70,000.00 Purchase Price therefor plus the sum of $90,000.00, which the City shall use to pay the amount owed to Seller for the Property under the Option Purchase Agreement. Developer shall, within 20 days after receipt of notice of intention to terminate from the City, give notice to the City of its intention to complete the purchase of the Property, and failure to give such notice as required shall have the effect of terminating the Developer's right to complete the purchase of the Property. In the event the City gives to the Developer notice of its intention to -3- 0 0 terminate this Agreement and the purchase and sale of the Property and the Developer does not exercise its right to complete the purchase of the Property, the Developer shall forthwith authorize, execute and deliver to the City a Warranty deed con- veying to the City its entire interest in the Property and any improvements con- structed thereon, and except as provided below this Agreement shall terminate and neither party shall have any further rights or obligations hereunder. Notwith- standing such termination the rights and obligations of the City and the Developer under Section 6.06 hereof shall continue in full force and effect. In the event the Developer exercises its right to complete the purchase of the Property as provided in this Section, upon completion of such purchase this Agreement shall terminate and, except as provided below, neither party shall have any further rights or obligations hereunder. Notwithstanding such termination the rights and obligations of the City and the Developer under Section 6.06 hereof shall continue in full force and effect. 2.02. Deed. The City shall convey title to the Property to the Developer or its designee by Warranty Claim deed. Such conveyance and title shall, in addition to all conditions, covenants, and restrictions set forth or referred to elsewhere in this Agreement, be subject to: (A) Easements for utility purposes over the Property as shown on the duly recorded plat thereof. (B) An easement for sanitary sewer purposes on the Property as shown on duly recorded plat thereof. (C) Easements for drainage and utility purposes on the Property as shown on the duly recorded plat thereof. (D) Easements for roadway purposes on the property as shown on the duly recorded plat thereof. -4- (E) Protective covenants of record. (F) Pending special. assessments. (G) This Agreement. 2.03. Time and Place of Closing. Conveyance of title to the Property shall take place on August 20 , 1982, or a date prior thereto mutually satisfactory to the City and the Developer. The closing shall be held at the principal office of the City. 2.04. Taxes. The ad valorem taxes levied on the Property which are payable to date have been paid. The Developer shall pay all ad valorem taxes and special assessments levied on the Property which are payable subsequent to the date of this Agreement, during the term of this Agreement. 2.05. Recording of Deed. The Developer shall within 10 days after the clos- ing, file and have recorded in the office of the Recorder of McLeod County, the Deed conveying the Property from the City to the Developer and this Agreement, and shall pay all costs of such recording. 2.06. Title. The City does not warrant the title to the Property except that it warrants that as of the closing date there will not exist on the Property any lien or encumbrance arising out of any act by the City, except such rights as the Seller may have to require the title of the Property to be returned to it if the purchase price due under the Option Purchase Agreement is not paid when due. The City shall have no obligation to provide to the Developer title insurance with respect to the Property. -5- 0 Section 3. Developer Undertakings. 3.01. Construction and Value of Facilities r1 L In consideration of the sale by the City to the Developer of the Property for the Purchase Price of $70,000.00, the Developer agrees to construct (or cause to be constructed) upon the Property the Facilities described in the attached Exhibit B, which together shall have an Assessor's Market Value, as determined by the County Assessor of McLeod County in accordance with applicable law, of not less than $608,300.00 as estimated for 1983 -1984. The Developer shall not through (a) tax abatement proceedings, and /or (b) any proceeding commenced pursuant to Minnesota Statutes, Chapter 278 or any similar law, and /cr (c) willful demolition of Facilities, cause the Assessor's Market Value of the Facilities, and any other improvements constructed to fall below such amount. Except as expressly provided otherwise herein, no provision of this Agreement shall restrict the Developer from the construction of additional improvements on the Property. The Facilities, and any additional improvements to be located upon the Property during the term of this Agreement, shall be constructed in accordance with this Section and Section 3.02. 3.02. Plans and Specifications. The Developer will develop the Property and construct the Facilities in accordance with plans and specifications which conform to the Tax Increment Development Program, this Agreement and applicable state and local laws, ordinances, rules and regulations. Plans and specifications for such development and construction shall be submitted to and subject to approval by the City. If the plans and specifications comply with this Section 3.02, the City shall approve them in writing. If the plans and specifications do not comply with this Section 3.02, the City shall notify the Developer of this fact and provide the Developer with a list of specific objections within thirty (30) days after their receipt by the City. The Developer shall within forty —five (45) days of Q= �] 0 receipt of such rejection and list of specific objections, submit new or corrected plans and specifications to the City which comply with this Section 3.02; provided that in the event plans and specifications which comply with this Section 3.02 are not so resubmitted, this Agreement may be voided at the option of the City. In the event the plans and specifications are so resubmitted by the Developer, but are not approved or returned with a specific list of objections by the City within fifteen (15) days of such resubmission, they shall be deemed approved. After approval of the plans and specifications by the City (the Plans and Specifications), any change in the Plans and Specifications which substantially alters the construc- tion of the Facilities shall be submitted to and subject to approval by the City. 3.03. Construction Contracts. The Developer shall enter into one or more con- tracts with one or more general contractors (the Contractors) providing for the construction of the Facilities. On or before August 20 1982, or such later date as is agreed to by the City, the Developer shall have entered into contracts for the construction of the Facilities having a cost of not less than $947,000.00. The Facilities shall be completed on or before June 31 , 1983, and the contracts for their construction shall so provide. The completion date under such contracts may be made subject to Unavoidable Delays as hereinafter defined, in which event the completion date may be extended by the period of such Unavoidable Delays. 3.04. Access to Property. The City agrees to permit and does permit the Developer or its officers, employees, agents or contractors access to the Property for any purpose deemed necessary by the Developer for carrying out the provisions of this Agreement. This access shall also include inspection of the work on the Facilities by representatives of the Developer, mortgagees or any governmental -7- 0 authority or agency. 3.05. Construction Progress Report • Subsequent to the conveyance of the Property to the Developer, and until construction of the Facilities has been com- pleted in accordance with Section 3.02, the Developer shall, upon written request of the City, make, in such detail as may reasonably be required by the City, and forward to the City, a written report as to the actual progress of such construc- tion; provided, however, that such request by the City shall be no more often than monthly. 3.06. Completion Certificate. Upon completion of the Facilities in accordance with Section 3.02, the City shall furnish to the Developer an appropriate completion certificate so certifying. The certification by the City shall be (and it shall be so provided in the certification itself) a conclusive determination of satisfaction and termination of the covenants in this Section 3 with respect to the obligations of the Developer to construct the Facilities and the dates of completion thereof. The certificate shall be in the form attached hereto as Exhibit C. Within thirty (30) days after written request by the Developer, the City shall provide to the Developer such certification or a written statement indicating in adequate detail how the Developer has failed to complete the Facilities in accordance with this Agreement, or is otherwise in default, and what measures or actions must be taken to complete the Facilities in accordance with this Agreement. 3.07. Enforcement; Damages. The Developer acknowledges the right of the City to enforce the terms of this Agreement against the Contractors and the Developer, by action for specific performance or damages, or both, or by any other legally authorized means. The Developer also acknowledges that its failure to perform any or all of its obligations under this Agreement may result in a default by the City with respect MM 0 to the Bonds and substantial damages to the City; that in the event of default by any Contractor or the Developer the City may commence legal action to recover all damages, losses and expenses sustained by the City; and that such expenses may in- clude but are not limited to the reasonable fees of legal counsel employed with respect to the enforcement of this Agreement. Neither the Developer nor any agent or officer or employee of the Developer shall be liable to the City for any expense or loss incurred by the City as a result of any Contractor's default in the con- struction of Facilities in excess of the liability of the Contractor to the Developer for such default. Section 4. Use of Property; Financing and Liens. 4.01. General Restrictions. The Developer agrees for itself, and its succes- sors and assigns, and every successor in interest to, or any part thereof, that the Developer and its successors and assigns shall: (A) devote the Property to, and only to and in accordance with the uses specified in the Development Program, as amended; (B) not discriminate on the basis of sex, color, creed, national origin, or sex in the sale, lease, or rental, or in the use or occupancy of the Property or the Facilities, or any part thereof; (C) not cause the Property or the Facilities to be removed from the public tax rolls or to become exempt from assessment for general ad valorem real estate taxes by reason of any conveyance, lease or other action. 4.02. Covenants. It is intended and agreed, that the covenants provided in Sections 3.01 and 4.01 shall be covenants running with the land binding to the fullest extent permitted by law and equity for the benefit and in favor of, and enforceable by, the City, its successors and assigns, and any successor in interest to the Property, or any part thereof, against the Developer, its successors and assigns, and every successor in interest to the Property or any part thereof or any interest therein, and any party in possession or occupancy of the Property or any part thereof; provided further that breach of these covenants shall not result in a reversion of title to the Property to the City. The covenants provided in Sec- tions 3.01 and 4.01 and shall remain in effect only so long as any of the Bonds are outstanding. 4.03. Restrictions on Conveyance; Financing. The Developer will not make or suffer to be made, any sale, assignment, conveyance, lease, or transfer in any other form this Agreement or the Facilities, or any part thereof or any interest therein, or contract or agree to do any of the same, except as provided in Section 4.04 within four (4) years from the date of this Agreement without express approval of the City. 4.04. Financing of the Property and Facilities. It is understood that the Developer may finance the construction of the Facilities by means of a mortgage if the lender acknowledges and agrees to the terms of this Agreement. 4.05. Notice of Default. Whenever the City shall deliver any notice or demand to the Developer with respect to any breach or default by the Developer in its obligations or covenants under this Agreement, the City shall at the same time forward a copy of such notice or demand to each holder of any permitted mortgage, lien or other similar encumbrance at the last address of such holder shown in the records of the City. Each such holder shall have the right, at its option, to cure or remedy such breach or default and to add the cost thereof to the mortgage debt and the lien of its mortgage; provided, that if the breach or default is with respect to construction of the Facilities, nothing contained in this Agreement shall be deemed to permit or authorize such holder, either before or after foreclosure -10- 0 or action in lieu thereof, to undertake or continue the construction or completion of the Facilities without first having expressly assumed the obligation to the City, by written agreement satisfactory to the City, to complete the Facilities in the manner provided in this Agreement. Any such holder who shall properly complete the Facilities shall be entitled, upon written request made to the City, to a cer- tification or certifications by the City to such effect in the manner provided in Section 3.06. 4.06. No Merger. No provision of this Agreement is intended to or shall be merged by reason of the Deed(s) transferring the title to the Property from the City to the Developer or any successor in interest, and the Deed(s) shall not be deemed to affect or impair the provisions and covenants of this Agreement. 4.07. No Discrimination. The Developer for itself, and its successors and assigns, agrees that in the construction of the Facilities the Developer will not discriminate against any employee or applicant for employment because of race, color, religion, sex or national origin. 4.08. Destruction of Facilities. So long as any of the Bonds are outstanding in the event of destruction of any Facilities upon the Property which reduces the Assessor's Market Value of the Property and the Facilities below $608.300.00 the following shall apply: (A) The Developer shall as soon as reasonably possible, and in any event on or before the second succeeding December 31 following such destruction, time being of the essence, repair, rebuild or replace the damaged Facilities to such extent as will cause the Assessor's Market Value of the Property and the Facilities to equal or exceed the Assessor's Market Value thereof as fin- ally determined most recently prior to such destruction; or (B) If such repair, rebuilding or replacement is not completed by such date, the City shall have the rights specified in Section 3.07. -11- r 0 4.09. Insurance. During the term of this Agreement, until a completion Cer- tificate has been furnished under Section 3.06 hereof, the Developer shall maintain (or cause to be maintained) with reputable insurance company or companies licensed to do business in Minnesota, such insurance covering the Facilities in such amounts as are customarily carried on such properties. Without limiting the generality of the foregoing, the Developer specifically shall maintain (or cause to be main- tained) direct damage insurance covering fire and extended coverage perils, and special extended coverage perils in an amount equivalent to the actual replacement cost of the building and contents therein, and architectural and engineering fees without deduction for depreciation. Coverage on new construction shall be main- tained on a completed value basis during the course of construction. The policies shall neither be subject to a co- insurance clause nor contain an agreed amount clause, and shall be written with a deductible clause not exceeding $5,000.00. During the remaining term of this Agreement (after a completion Certificate has been furnished under Section 3.06 hereof) the Developer shall procure fire insurance with extended coverage endorsement upon the Facilities in an amount equal to eighty per cent (80 %) of the insurable value of the buildings above the founda- tion walls, with a deductible clause not exceeding $5,000.00. Policies of fire insurance procured pursuant to this Section shall assure and be payable to the Developer, and shall provide for release of insurance proceeds to the Developer for restoration of loss. The City shall be furnished certificates showing the existence of such insur- ance. In case of loss, the Developer is hereby authorized to adjust the loss and execute proof thereof in the name of all parties in interest. The Developer shall annually file with the City a schedule describing all such policies in force, including the types of insurance, names of insurers, policy -12- 0 0 numbers, effective dates, terms of duration or any other information the Developer deems pertinent. Such list shall be accompanied by an Officer's Certificate stat- ing that, to the best of the knowledge of the signers, such insurance then in force complies with this Section. 4.10. Condemnation. In the event of condemnation of any or all of the Prop- erty, other than by the City, which reduces the Assessor's Market Value of the Prop- erty and the Facilities below $608,300.00 , the Developer shall take the actions specified in Section 4.08, paragraph (A). If such actions are not performed as required the City shall have the rights specified in Section 3.07; or if such ac- tions cannot be performed, the Developer shall pay to the City, an amount of the condemnation proceeds thereof equal to the lesser of (a) 25% of the interest to become due on the Developer's Bonds (as defined in Section 5.02) from their date of issue to maturity, less any Bond Guaranty Payments previously made by the Devel- oper pursuant to Section 5.02 which were used to pay interest on the Developer's Bonds; plus 25% of the principal amount of the Developer's Bonds less any Guaranty Payments previously made by the Developer pursuant to Section 5.02 which were used to pay or discharge the principal on the Developer's Bonds; or (b) the amount re- quired, together with the moneys then on hand in the bond fund or any reserve fund for the Bond, to discharge all Developer's Bonds then outstanding which shall not exceed 25% of the principal amount of the Developer's Bonds less any Guaranty Pay- ments previously made by the Developer pursuant to Section 5.02 which were used to pay or discharge the principal on the Bonds. The Developer agrees that the amounts payable to the City under this Section will not exceed the City's contribution to the value of the Developer's Property and the Facilities through acquisition of the Property, and will be included in the value legally compensable upon any such con- demnation. Any payment made under this Section shall extinguish the Developer's -13- • 0 responsibility to make Guaranty Payments under Section 5.02 to a like extent. Section 5. Securitv For Bonds. 5.01. Tax Increments; Use and Investment. The Developer acknowledges the right of the City to pledge the Tax Increment derived from the District to the pay- ment of principal of and interest on the Bonds; to deposit the Tax Increment in the fund established for the payment of the Bonds for this purpose not more often than twice yearly; and to invest or direct the investment of such Tax Increment in ac- cordance with Minnesota Statutes, Section 475.66. 5.02 Partial Bond. For purposes of this Agreement, "Developer's Bonds" means 105% of the Bonds issued by the City with respect to the Tax Increment Project. It is estimated that the principal of and interest on the Bonds will come due on the dates specified in the attached Exhibit D, and the Developer agrees to pay to the City at the times and subject to the limitations herein provided, the amount needed in addition to the Tax Increment, and any interest earnings thereon avail- able to the City, to pay the principal of and interest on the Developer's Bonds when due. The Developer agrees to pay such amount to the City immediately upon receipt of a request therefor from the City; provided that in no event shall the amount paid to the City pursuant to any such request exceed: (a) to pay principal, 25% of the principal amount of the Developer's Bonds, less the amount of any previous payments made for this purpose; and (b) to pay interest, 25% of the interest to become due on the Developer's Bonds from their date of issue to maturity or their earlier redemption, less the amount of any previous payments made for this purpose. Payments made to the City by the Developer pursuant to this Section shall be known as "Guaranty Payments." -14- 0 0 Section 6. General Provisions. 6.01. Conflicts of Interest• Representatives Not Individually Liable. No member, officer, or employee of the City shall have any personal interest, direct or indirect, in this Agreement, nor shall any such member, officer, or employee participate in any decision relating to this Agreement which affects his or her personal interests or the interests of any corporation, partnership, or association in which he or she is, directly or indirectly, interested. No member, officer, or employee of the City or the Developer shall be personally liable to the Developer or the City, as the case may be, in the event of any default under or breach of this Agreement by the City or the Developer, or for any amount which may become due to the Developer or the City or for any obligation issued under the terms of this Agreement. 6.02. Rights Cumulative. The rights and remedies of the parties of this Agree- ment, whether provided by law or by this Agreement, shall be cumulative, and the exercise by either party of any one or more of such remedies shall not preclude the exercise by it, at the same or different times, of any other such remedies for the same default or breach or of any of its remedies for any other default or breach of the party. No waiver made by either such party with respect to the per- formance or the manner or time thereof, of any obligation under this Agreement, shall be considered a waiver with respect to the particular obligation of the other party or a condition to its own obligation beyond those expressly waived in writing and to the extent thereof, or a waiver in any respect in regard to any other rights of the party making the waiver of any obligations of the other party. Delay by a party hereto instituting or prosecuting any cause of action or claim hereunder shall not be deemed a waiver of any rights hereunder. 6.03. Unavoidable Delays. Wherever used in this Agreement, the term "Unavoid- able Delays" shall mean a delay resulting from a cause over which the party required -15- 0 LI to make performance does not have control and which can not or could not have been avoided by the exercise of reasonable care, including but not limited to acts of God, accidents, war, civil unrest, embargos, strikes, unavailability of raw mater- ials or manufactured goods, litigation and the delays of the other party or its contractors, agents or employees in the performance of their duties under or in- cident to this Agreement. 6.04. Recording. The Developer shall cause this Agreement to be recorded in the office of the Recorder of McLeod County, Minnesota immediately following the recording of the Deed conveying title to the Property to the Developer or its designee. 6.05. Override Provision. Notwithstanding any other provisions of this Agree- went to the contrary, nothing herein is intended or shall be interpreted to give or convey to the City any interest in the Property after the transfer of title to the Property to the Developer, or in the Facilities, or maintain any action to re- cover the Property or the Facilities from the Developer; and nothing herein is in- tended or shall be interpreted as requiring the Developer to specially guaranty the payment of more than 25% of the principal amount of the Bonds and 25% of the interest coming due thereon. 6.06. Indemnification. Buyer agrees to indemnify and hold the City harmless from and against all costs, expenses, damages or losses, including reasonable at- torneys,fees, resulting from or arising out of this Agreement and the transactions contemplated thereby. Section 7. Administrative Provisions. 7.01. Notices. All notices, certificates or other communications required to be given to the City and the Developer hereunder shall be sufficiently given -16- 0 0 and shall be deemed given when delivered or deposited in the United States mail in registered form with postage fully prepaid and addressed as follows: If to the City: If to the Developer: City of Hutchinson 37 Washington Avenue West Hutchinson, Minnesota 55350 & Dick McClure ller. Miller & Hiehwav 7 West Hutchinson, Minnesota 55350 The City and the Developer, by notice given hereunder, may designate different addresses to which subsequent notices, certificates or other communications will be sent. 7.02. Binding Effect. This Agreement shall inure to the benefit of and shall be binding upon the City and the Developer and their respective successors and assigns. 7.03. Severability. In the event any provision of this Agreement shall be held invalid or unenforceable by any court of competent jurisdiction, such hold- ing shall not invalidate or render unenforceable any other provision hereof. 7.04. Amendments Changes and Modifications. This Agreement may be amended or any of its terms modified only by written amendment authorized and executed by the City and the Developer. 7.05. Further Assurances and Corrective Instruments. The City and the De- veloper agree that they will, from time to time, execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, such supplements hereto and such further instruments as may reasonably be required for correcting any inadequate -17- i • or incorrect description of the Property, or for carrying out the expressed inten- tion of this Agreement. 7.06. Execution in Counterparts. This Agreement may be simultaneously exe- cuted in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. 7.07. Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota. 7.08. Captions. The captions or headings in this Agreement are for conven- ience only and in no way define, limit or describe the scope of intent of any pro- visions or Sections of this Agreement. IN WITNESS WHEREOF, the City has caused this Agreement to be executed in its corporate name by its duly authorized officers and sealed with its corporate seal; and the Developer has caused this Agreement to be executed in its name, as of the date first above written. CITY OF HUTCHINSON (SEAL) By Its Mayor Its City Clerk am 11 DEVELOPER (SEAL) STATE OF MINNESOTA) ) SS. COUNTY OF MCLEOD ) On this day of 1982, before me, a Notary Public within and for said County, appeared and , to me personally known, who, being by me duly sworn, did say that they are respec- tively the Mayor and City Clerk of the City of Hutchinson, and the instrument was signed and sealed in behalf of said corporation by authority of its City Council, and they acknowledged that said instrument was the free act and deed of said cor- poration. _ Notary STATE OF MINNESOTA) ) SS. COUNTY OF MCLEOD ) On this day of _, 1982, before me, a Notary Public within and for said County, appeared to me personally known, who, being by me duly sworn, did say that and the instrument was signed by them and their free act and deed. Notary Public -19- •O ; 1 :J I C G 1V T R A. l: 1 EXHIBIT A For and in consideration of the s "m of...___.- Gna._. ---- -- rc3 and 00/100 --------- -n- ----- -- ---- ------ '- _.-- --- ---- - - - - -- - -- (�- _lOQ, -�_) to me in hand paid, the receipt uhereof is hereby acknowledged, I hereby ;rant unto The City of Hutchinson -----------_--------------------------------------- --------------------------------------------------------------------- -------------------------------------------- _.___.Option far -....ninety- _ -(90) -days --------------- ---- 20th da o 'lay ___..:_-_ Is_S2.__. to purchase, for the fromthe----- - -- - - - - - - - - -- ----------------- y f -- --- One Hundred Sixty Thousand and 00/100 - -: - - -- 160,000. 0 sum of -- - - ------------ ....... - --------- -- --- --- --- -- -- -------- - - - -- -- �OLL.IRS (d - - --- -- - -- --- - --p the following described lands -------------------------- ---- -------------------- --------- -- ---------------- ------------ — ----------- situated in the McLeod Minnesota - -- ____. ---- to -wit: County of -- - - -- --- --------- --- --- ---------and State of ..... -- - - --- -- Lot Ten (10), Block Thirteen (13), South Half of City of Hutchinson Seller to pay fiist half of 1982 tames payable and buyer to pay the second half of 1982 taxes payable. upon the following terms and conditions, to -wit: This option may be renewed for an additional ninety (90) days upon mutual agreement of both parties should substantial pro- gress be made on the project known as "The S & L Building Re- development Project'. City of Hutchinson Said---------------------- -------------- --- ---- -- - - - - -- -- - - - -- - - -- -- — - -- - - - - -- - -- shall signify his intention to take said property by due notice in writing, and shall perform the con- ditions and comply with the terms of this Option, all within the time above specified; and a failure to give such notice, and comply with the terms and perform the conditions hereof (except as herein- after provided), within the time specified, shall terminate this Option, and all rights thereunder without further act or notice whatsoever, time being the essence of this agreement. thirty (30) In case said notice shall be given in due time, but transaction is not completed, days shall be given in which to examine titles, make conveyances and -close the transaction. In Presence of e City of Hutchinson to each and all of its terms. -20- On this ..... -.20th --- --dab of - -- -ray --------------- - - -------4. D. 19-- 62 -- before me, ------------------ ------ -- — -- - - -- - - - -- - -- --- a----------- NQtaxy --- PLtk212 - -- - - m2thin and for said County and State, personally appeared _. ------ -- Rorkdld --- T.._: SCSzrdX__— ____._..________ ----------------------------- ------- --------- --- --- ------ - -- - -- -- - - -.to me known to be the same person described in and who executed the foregoing instrument, and acknowledged that he executed the same as_. t?ig_free act and deed. • E[' S' �° NC'.iur PURUC - aiN.r•ESoG1 D COUNT- Notary ublic McLeod Count MN 1 Z� Mf Lcmmss,m Fnpues SeG 26. — ____— __= L— _— __--- _.L- ______. --.____________..Y_L_-_—_....— .�kdtc C[f.._MINNESOTA -- County of_._�3cLEOD ._ On this 20th- - -day of May - ___ -__- 19 8 , before me a Notary -- —_— within and ' /or said County, personally appeared _ raiues G. Del eyer Gay D. Plotz to me personally known, who, being each by me duly sworn .did say that they are rxspee- muni a lively the__aY�r____ —_ —AEt and the__ Clerk — __ —_of the orpora 1 amed i�llfSiC a ng instrument, and that the seal a)JTxed to said instrument is the r� o�f{tye 3,�gi of said corpora i n, and that said instrument was signed and sealed in behalf of said g6rpora o y author- ity of its isxd __._ City Council___and 10 R - GarayµF =__________________ _ _acknowledged said instrument to be the free act and deed of tr rd O O P4 P1 0 i 1 11 --------------- - -- Not ry Public, McLeod County, MN ...vw � r•� •)pLEEN R: RUlVKE ��� ME[KER GOUNTL `. � NOTARY PU�LIPMINNCK)TA µT COMMN[10N CAYIP[l MaY. ZD�IG89 • h1MhMAA�'r"M1�, _ ,✓ ��'Y: fr of •, ^m�i_ � ____ ------------- --------- - „1 __ ------------------ --------- - ---------- On this ..... -.20th --- --dab of - -- -ray --------------- - - -------4. D. 19-- 62 -- before me, ------------------ ------ -- — -- - - -- - - - -- - -- --- a----------- NQtaxy --- PLtk212 - -- - - m2thin and for said County and State, personally appeared _. ------ -- Rorkdld --- T.._: SCSzrdX__— ____._..________ ----------------------------- ------- --------- --- --- ------ - -- - -- -- - - -.to me known to be the same person described in and who executed the foregoing instrument, and acknowledged that he executed the same as_. t?ig_free act and deed. • E[' S' �° NC'.iur PURUC - aiN.r•ESoG1 D COUNT- Notary ublic McLeod Count MN 1 Z� Mf Lcmmss,m Fnpues SeG 26. — ____— __= L— _— __--- _.L- ______. --.____________..Y_L_-_—_....— .�kdtc C[f.._MINNESOTA -- County of_._�3cLEOD ._ On this 20th- - -day of May - ___ -__- 19 8 , before me a Notary -- —_— within and ' /or said County, personally appeared _ raiues G. Del eyer Gay D. Plotz to me personally known, who, being each by me duly sworn .did say that they are rxspee- muni a lively the__aY�r____ —_ —AEt and the__ Clerk — __ —_of the orpora 1 amed i�llfSiC a ng instrument, and that the seal a)JTxed to said instrument is the r� o�f{tye 3,�gi of said corpora i n, and that said instrument was signed and sealed in behalf of said g6rpora o y author- ity of its isxd __._ City Council___and 10 R - GarayµF =__________________ _ _acknowledged said instrument to be the free act and deed of tr rd O O P4 P1 0 i 1 11 --------------- - -- Not ry Public, McLeod County, MN ...vw � r•� •)pLEEN R: RUlVKE ��� ME[KER GOUNTL `. � NOTARY PU�LIPMINNCK)TA µT COMMN[10N CAYIP[l MaY. ZD�IG89 • h1MhMAA�'r"M1�, 0 EXHIBIT B Description of Facilities -21- r� EXHIBIT C Completion Certificate E The undersigned, being the duly qualified and acting City Clerk of the City of Hutchinson, Minnesota, hereby certifies pursuant to Section 3.06 of the Purchase and Development Contract, dated as of , 1982 by and between the City and (the Developer), that the Developer has completed the acquisition and construction of the Facili- ties (as defined in said Contract) in accordance with said Contract. Dated: , 1982 _22_ City Clerk Hutchinson, Minnesota EXHIBIT D Estimated Debt Service ($135,000) Schedule on Developer's Bonds (To be provided by Ehlers & Assoc.) IYACD