Loading...
03-12-1985 CCM0 MINUTES REGULAR MEETING - HUTCHINSON CITY COUNCIL TUESDAY, MARCH 12, 1985 1. The meeting was called to order by Mayor Stearns at 7:30 P.M. The fol- lowing were present: Alderman Mike Carls, Alderman John Mlinar, Alder- man Marlin Torgerson, Alderman Pat Mikulecky, and Mayor Robert H. Stearns. Also present: City Administrator Gary D. Plotz and City At- torney James Schaefer. 2. INVOCATION In the absence of a pastor, there was a time of silent prayer. 3. MINUTES The minutes of the special meetings of February 25, 1985 and February 28, 1985, regular meeting of February 26, 1985 and bid opening of March 1, 1985 were approved as distributed. 4. ROUTINE ITEMS (a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS 1. BUILDING OFFICIAL'S REPORT - FEBRUARY 1985 2. LIBRARY BOARD MINUTES DATED FEBRUARY 11 AND 26, 1985 3. NURSING HOME BOARD MINUTES DATED JANUARY 24, 1985 4. PARK AND RECREATION BOARD MINUTES DATED JANUARY 2 AND 30, 1985 5. TREE BOARD MINUTES DATED JANUARY 23, 1985 Mayor Stearns ordered the report and minutes to be filed. (b) CONSIDERATION OF APPLICATION FOR SNOW REMOVAL PERMITS 1. LEON MADSON 2• RICHARD STURGES It was moved by Alderman Mlinar, seconded by Alderman Mikulecky, to approve and issue the permits. Motion unanimously carried. 5. PUBLIC HEARING - 8:00 P.M. (a) CONSIDERATION OF ISSUING INDUSTRIAL DEVELOPMENT REVENUE BOND TO LARRY AND SHERRY BETHKE The public hearing was called to order at 8:00 P.M. by Mayor Stearns. Mr. John Bernhagen, Executive Director of Community Development 1 �� COUNCIL MINUTES MARCH 12, 1985 Corp., explained the criteria used to determine the issuance of in- dustrial revenue bonds. It was the board's recommendation to ap- prove the application for a $1,400,000 motel project. Architect John Korngiebel presented drawings for the proposed 52 - room project. Mr. Larry Bethke stated 60% of his clientele would come from out of town and would not be in competition with the other existing motels! No feasibility study had been prepared on the project. Mr. Jim McClure, 1301 Campbell Lane, asked about the city's limita- tion on issuing industrial revenue bonds and if approval of all the projects would exceed the city's allotment. City Administrator Plotz responded approval of all the projects would exceed the city's limit by $160,000. However, the city would have two options to obtain additional funding. Mr. Michael Wilhelmson, Coon Rapids, commented on 60% of the custo- mers coming from out of town and not competing with the other motels in town. He asked where the other 40% would come f rom. Mr. McClure commented on the lack of a feasibility study on the proposed project. He pointed out that at the time the S & L project was done, they were required by the city to have a study prepared. Alderman Carls responded that the S & L project also included tax increment financing, which the Bethke project did not. Therefore, the city was directly involved. Ms. Betty Beightol, owner of Hutch Motel, remarked that the Bethke project followed the guidelines on 7 points; she inquired about the; two points that did not meet the guidelines. She stated there would be a financial advantage to competition. Mr. Dave Bagne, owner of King Motel, asked if the Community Devel- opment Corp. had considered competition with other local business. There was some concern in the guidelines of direct competition to other business. The two applications should be considered together, rather than independently. He questioned if the town was capable of supporting this number of beds. He also felt consideration should be given to a feasibility study. Mr. McClure stated that due to changes in state and federal laws, the city and Council have more responsibility regarding industrial revenue bonds since there is a limited amount allocated to each city. The Council has the responsibility to decide whether or not the project is good for the city. 2 COUNCIL MINUTES MARCH 12, 1985 Mr. Bob Mlinar, manager of Americ-Inn, thought it wouldn't be fair to look at the room rates as proposed; the actual charge may be lower. Mr. Bagne stated he met with the Chamber of Commerce in 1981 when he purchased the King Motel. At that time studies showed the pro- jected growth rate of Hutchinson to be two percent. Mr. Bernhagen explained how industrial revenue bond guidelines were determined. The board looked at certain criteria and forwarded fi- nancial information to the Council to aid them in making a decision., Alderman Mlinar moved to close the hearing at 8:50 P.M. Motion seconded by Alderman Torgerson and carried unanimously. The motion was made by Alderman Mikulecky to approve the commercial development revenue bond for the Bethkes' Victorian Inn project and to waive reading and adopt Resolution No. 8003. Alderman Mlinar seconded the motion. The motion was amended by Alderman Carls to provide the provision that the three stipulations recommended by the city's auditing firm be included in the motion; namely: 1) personal guarantee of owner(s), (2) assignment of life insurance on the owner(s), and (3) a performance bond to assure (the lender) that the project is com- pleted. Alderman Torgerson seconded the amended motion, and it unanimously carried. The motion carried unanimously. (b) CONSIDERATION OF ISSUING INDUSTRIAL DEVELOPMENT REVENUE BOND TO MICHAEL AND LOANN WILHELMSON The public hearing was opened at 8:55 P.M. by Mayor Stearns. Mr. Michael Wilhelmson reported on the proposed 22 -unit addition to the existing Americ-Inn Motel. Executive Director John Bernhagen stated the Community Development Corp. Board felt the proposed project met five of the nine guide- lines criteria for approval. It was moved by Alderman Torgerson to close the hearing at 9:07 P.M. The motion was seconded by Alderman Mlinar and unanimously carried. Alderman Torgerson made the motion to reject the application. The motion was seconded by Alderman Mikulecky and failed three to two, with Aldermen Torgerson and Mikulecky voting aye and Aldermen Carls, Mlinar and Mayor Stearns voting nay. The motion was made by Alderman Mlinar to approve the commercial COUNCIL MINUTES MARCH 12, 1985 development revenue bond for the Wilhelmsons to construct a two story addition to the existing Americ-Inn Motel and to waive read- ing and adopt Resolution No. 8004. Alderman Carls seconded the motion. The motion was amended by Alderman Mlinar to include the stipulation noted by the City's auditing firm that the applicant provide personal guarantees. Alderman Carls seconded the amended motion, and it carried unanimously. The main motion carried three to two, with Aldermen Carls, Mlinar and Mayor Stearns voting aye, and Aldermen Torgerson and Mikulecky voting nay. 6. COMMUNICATIONS, REQUESTS AND PETITIONS (a) CONSIDERATION OF REQUEST BY CHAMBER OF COMMERCE TO USE LIBRARY SQUARE FOR VARIOUS ACTIVITIES Following discussion, it was moved by Alderman Torgerson to approve the requests. Motion seconded by Alderman Carls and unanimously carried. (b) REPORT ON ACTIVITIES OF CABLE TELEVISION ADVISORY BOARD Barry Anderson represented the Cable Television Advisory Board and presented a report on its current activities and long-range plans. 7. RESOLUTIONS AND ORDINANCES (a) RESOLUTION NO. 8000 - RESOLUTION ADOPTING ASSESSMENT, ASSESSMENT ROLL NO. 202 It was moved by Alderman Mikulecky, seconded by Alderman Torgerson, to waive reading and adopt Resolution No. 8000. Motion carried unanimously. (b) ORDINANCE NO. 5/85 - ORDINANCE AMENDING SECTION 4.25 OF THE SUBDI- VISION ORDINANCE NO. 466 OF THE CITY OF HUTCHINSON, ENTITLED FINAL PLAT PROCEDURE The motion was made by Alderman Torgerson to waive the first read- ing of Ordinance No. 5/85 and set the second reading for March 26, 1985. Alderman Carls seconded the motion, and it unanimously car- ried. 8. UNFINISHED BUSINESS (a) CONSIDERATION OF AWARDING BID FOR HOUSE AT 613 SECOND AVENUE SE (DEFERRED MARCH 1, 1985) Following discussion, Alderman Mlinar moved to award the bid for the house located at 613 Second Avenue SE to Quentin Larson and Doug Dobratz for the amount of $320, with the structure to be moved; 4 COUNCIL MINUTES MARCH 12, 1985 off the property. The motion was seconded by Alderman Torgerson and carried unanimously. 9. NEW BUSINESS (a) CONSIDERATION OF ENGINEER'S REPORT AND SETTING HEARING ON IMPROVEMENT PROJECT NO. 85-01-37 After discussion, the motion was made by Alderman Mikulecky, sec- onded by Alderman Mlinar, to approve the engineer's report on im- provement project No. 85-01-37, to set the public hearing for April 9, 1985 at 8:00 P.M., and to waive readings and adopt Resolutions No. 8001 and No. 8002. The motion unanimously carried. (b) CONSIDERATION OF REFUNDING INTEREST PAID ON SPECIAL ASSESSMENT City Attorney Schaefer reported Mr. Gregory DeWitte was not elig- ible for an interest refund on early payment of his special assess- ment inasmuch as State Statute mandates how interest is collected. No action was taken by the Council. (c) CONSIDERATION OF ESTABLISHING DATE FOR LOCAL BOARD OF REVIEW MEETING It was the consensus of the Council to request the County Assessor to reschedule the local Board of Review Meeting for June 3, 1985 at 10:00 A.M. No action was taken. (d) CONSIDERATION OF APPOINTING CITY ADMINISTRATOR AS PRIMARY CONTACT PERSON FOR WASTEWATER TREATMENT PLANT PROJECT Following discussion, Alderman Torgerson moved to approve the ap- pointment of the City Administrator and to waive reading and adopt Resolution No. 8005. The motion was seconded by Alderman Carls and carried unanimously. 10. MISCELLANEOUS (a) COMMUNICATIONS FROM CITY ADMINISTRATOR City Administrator Plotz explained the procedure for acquiring the wastewater treatment plant site. The MPCA mandates that the city have a certified appraisal done prior to purchase. The appraiser, Jerry McKinzie, would be available within the next 10 days to do the appraisal for approximately $800. The motion was made by Alderman Mlinar that the City Administrator and City Attorney proceed with the necessary procedure to acquire the site appraisal for the proposed wastewater treatment plant. 5 COUNCIL MINUTES MARCH 12, 1985 The motion was seconded by Alderman Carls and unanimously carried. It was reported that the City had received a response from MN/DOT regarding signal lights at T.H. 7 and School Road. After discus- sion, the motion was made by Alderman Torgerson to receive clarifi- cation from MN/DOT regarding questions raised in their letter: 1) why would it cost the city $40,000 to $50,000 fee for a light when the stop light installed on Hwy. 15 South required only city cost of poles; 2) why would a signal not solve the problem; and 3) what other major reconstruction was needed at the intersection. Alderman Carls seconded the motion, and it carried unanimously. Mr. Plotz reported he would meet March 26 with the County Board to discuss the tax increment amendment for the Frank Fay project, and with the School Board at a later date. Pure Culture has not returned its sewer pre-treatment contract to the city, and this issue will be discussed with the MPCA on March 21. The problem will also be discussed with the government liaison of CED. Mr. Plotz commented on the remaining garage located at 613 Second Avenue SE. After discussion, Alderman Torgerson made the motion to move the structure to the street department site. Motion seconded by Alderman Mlinar and carried unanimously. (b) COMMUNICATIONS FROM CITY ATTORNEY City Attorney Schaefer recommended the Jablinski claim be paid by the city in the full amount of $1,300. Alderman Torgerson moved that, due to the fact it was an error on the city's part, the city pay Mr. Jablinski $1,300. The motion was seconded by Alderman Mikulecky and unanimously carried. (c) COMMUNICATIONS FROM ALDERMAN MIKE CARLS Alderman Carls responded to a recent letter to the editor in the Hutchinson Leader. He stated the City Council minutes conform to Roberts Rules of Order. Also, the meetings are covered by the media and are shown over cable television. In addition, the meet- ings are tape recorded, and the tapes are available to the public. The Council had expanded the amount of minutes taken to include workshops and directors meetings. It was his opinion that the pub- lic was better informed than in the past as to what was happening in city government. (d) COMMUNICATIONS FROM ALDERMAN JOHN MLINAR Alderman Mlinar inquired about the sign on the Cameo Cleaners R COUNCIL MINUTES MARCH 12, 1985 building. He was informed that the owner had applied for a build- ing permit to be in compliance for the sign. Inquiry was then made regarding the Century 21 building and its problem with a sign compliance. The City Administrator stated there were two ways to interpret whether the extension on the building was a structural wall, but the issue was in the process of being resolved. (e) COMMUNICATIONS FROM ALDERMAN PAT MIKULECKY Alderman Mikulecky inquired if there had been any offers for the city property commonly known as the "hole in the hill.' The answer was "no." (f) COMMUNICATIONS FROM MAYOR ROBERT H. STEARNS Mayor Stearns reported that today Congress had approved the federal revenue sharing for another year. 11. CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS (a) VERIFIED CLAIMS The motion was made by Alderman Mlinar, seconded by Alderman Tor- gerson, to approve the claims and authorize payment from the ap- propriate funds. Motion unanimously carried. 12. ADJOURNMENT There being no further business, the meeting adjourned at 10:00 P.M. 7