04-23-1985 CCMMINUTES
REGULAR MEETING - HUTCHINSON CITY COUNCIL
TUESDAY, APRIL 23, 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, Director of
Engineering Marlow V. Priebe, and City Attorney James Schaefer.
2. TNVOCATTON
The invocation was given by the Reverend Gerrit Molennar Jr.
3. MINUTES
Following discussion, Alderman Mlinar made the motion to approve the
minutes as distributed for the special meeting of March 26, 985, bid
openings of March 28, 1985 and April 16, 1985 and the minutes of the
regular meeting of April 9, 1985 as amended. The motion was seconded by
Alderman Torgerson and carried unanimously.
4. ROUTINE ITEMS
(a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS
I. FINANCIAL REPORT OF MARCH 1985
2. PLANNING COMMISSION MINUTES DATED MARCH 19, 1985
3. HOSPITAL BOARD MINUTES DATED MARCH 19, 1985
Mayor Stearns ordered the report and minutes to be filed.
(b) RESOLUTION NO. 8025 - RESOLUTION FOR PURCHASE
The motion was made by Alderman Carls to waive reading and adopt
Resolution No. 8025 for the purchase of bases and softballs, diesel
No. 2 oil, painter stripper, and 5,000 yards of crushed gravel.
Alderman Mlinar seconded the motion, and it unanimously carried.
(c) CONSIDERATION OF APPLICATION FOR LICENSE TO SELL CIGARETTES AT
RETAIL AT ROBERTS PARK CONCESSION STAND
It was moved by Alderman Torgerson, seconded by Alderman Carls, to
approve the application and issue the license and waive the fee.
Motion carried unanimously.
5. PUBLIC HEARING - 8:00 P.M.
(a) CONSIDERATION OF PARKVIEW PLAZA LIMITED PARTNERSHIP (HOTEL PROJECT)
1. HOUSING REVENUE BONDS
1
CITY COUNCIL MINUTES
APRIL 23, 1985
2. INDUSTRIAL REVENUE BONDS
3. TAX INCREMENT FINANCING (CONTINUED HEARING FROM MARCH 26, 1985)
The public hearing was called to order at 8:00 P.M. by Mayor
Stearns. City Administrator Plotz introduced the parties involved
with the project, namely: Owner and developer Frank Fay, project
partner Curtis Burckhardt, Attorney Stefanie Galey of Holmes &
Graven, financial consultant Bill Fahey of Ehlers & Associates, and
HRA Director Carol Haukos.
It was pointed out that the only change in the previously proposed
project was the partnership between Curtis Burckhardt and Frank
Fay.
City Administrator Plotz reviewed the items related to the project
and stated the city's auditing firm had found the project to be
feasible. He commented further on the tax increment amendment and
reported the County Board and School District had taken no action
on this matter, while the Planning Commission had given the amend-
ment their approval. It was also reported that two cities had of-
fered to release industrial revenue bond entitlement allocations to
the City of Hutchinson in the amount of $163,000.
Finance Director Kenneth B. Merrill reported on the status of the
city's tax increment fund.
Financial consultant Bill Fahey reviewed the amendment to the tax
increment financing plan.
City Attorney Jim Schaefer reported on the contract for sale of
land for private development and the assessment agreement.
Alderman Mikulecky raised several questions regarding the hotel
project. He inquired if it was a conflict of interest for the Com-
munity Development Corporation to participate in the approval of
the project. The answer was "no." Also, Mr. Mikulecky asked about
the appraised value of the hotel and why the city was paying a
higher amount than the assessed market value. Mr. Fay explained
that the sale was made about 15 years ago for $100,000, but it was
recently recorded with the county. Alderman Mikulecky also in-
quired about the HRA managing the housing units. Attorney Stefanie
Galey stated there would be no liability to the city.
Alderman Mlinar moved to close the hearings at 9:47 P.M. The mo-
tion was seconded by Alderman Mikulecky and carried unanimously.
The motion was made by Alderman Carls to approve the housing rev-
enue bonds and to waive reading and adopt Resolution No. 8032 asso-
ciated with it. Alderman Torgerson seconded the motion, and it
2
CITY COUNCIL MINUTES
APRIL 23, 1985
unanimously carried.
Alderman Torgerson moved to approve the industrial revenue bonds
and to waive reading and adopt Resolution No. 8031. The motion was
seconded by Alderman Mlinar. Alderman Mikulecky amended the motion
that the source of revenue bonds will come from $375,000 city al-
lotment and $163,000 from source of one other city. Alderman
Mlinar seconded the motion, and the amended motion unanimously car-
ried. The main motion carried unanimously.
It was moved by Alderman Torgerson to approve the tax increment fi-
nancing and to waive reading and adopt Resolution No. 8033, with
the provision of a four year restriction of sale of the property
from date of completion. Motion seconded by Alderman Carls.
Following discussion, Alderman Torgerson withdrew his motion, and
Alderman Carls withdrew his second to the motion.
Alderman Torgerson moved to approve the amendment to the tax incre-
ment financing plan and to waive reading and adopt Resolution No.
8033. Alderman Carls seconded the motion, and it carried four to
one, with Alderman Mikulecky voting nay.
The motion was made by Alderman Torgerson to approve the sale and
development agreement, with the addition to the contract of a four
year restriction of sale of the property from date of completion of
the certificate of purchase. Alderman Mlinar seconded the motion,
and it carried four to one, with Alderman Mikulecky voting nay.
Alderman Carls moved to approve the assessment agreement. Motion
seconded by Alderman Mlinar and carried four to one, with Alderman
Mikulecky voting nay. (It was noted that Alderman Mikulecky ob-
jected because of the general obligation bonding.)
City Administrator Plotz reviewed a parking survey of several other
cities. Mr. Fay stated he was agreeable to a monthly rental charge
instead of a long-term agreement with the city, but he would pre-
fer the agreement to be between the city and the tenant(s). The
parking would be located outside the parking district. This matter
will be discussed at a future Council meeting, and no action was
taken.
6. COMMUNICATIONS, REQUESTS AND PETITIONS
(a) CONSIDERATION OF REQUEST FOR CITY ATTORNEY TO ATTEND DWI IMPLIED
CONSENT SEMINAR ON MAY 9-10, 1985
After discussion, the motion was made by Alderman Mikulecky to ap-
prove the City Attorney to attend the seminar. Motion seconded by
Alderman Carls and carried unanimously.
3
CITY COUNCIL MINUTES
APRIL 23, 1985
(b) CONSIDERATION OF REQUEST FOR COMMUNITY DEVELOPMENT DIRECTOR TO
ATTEND CONFERENCE
Following discussion, it was moved by Alderman Carls, seconded by
Alderman Mlinar, to approve the request. Motion unanimously car-
ried.
(c) CONSIDERATION OF REQUEST FOR THREE YEAR EXTENSION ON ALBRECHT OIL
1980 CONDITIONAL USE PERMIT
After discussion, Alderman Carls moved to approve the three year
extension for the Albrecht Oil 1980 conditional use permit. The
motion was seconded by Alderman Mikulecky and carried unanimously.
7. RESOLUTIONS AND ORDINANCES
(a) ORDINANCE NO. 6/85 - ORDINANCE AMENDING SECTION 806:15 OF THE 1974
ORDINANCE CODE OF THE CITY OF HUTCHINSON, ENTITLED INTOXICATING
LIQUOR, ADMINISTRATION
The motion was made by Alderman Carls, seconded by Alderman Torger-
son, to waive the second reading and adopt Ordinance No. 714. The
motion unanimously carried.
(b) RESOLUTION NO. 8021 - RESOLUTION OF APPRECIATION TO NORAH MULLAN
Alderman Torgerson moved to waive reading and adopt Resolution
No. 8021. The motion was seconded by Alderman Mikulecky and car-
ried unanimously.
(c) RESOLUTION NO. 8026 - TRANSFERRING $254,175 FROM 1980 TAX INCREMENT
DEBT SERVICE FUND TO 1984 PARKING IMPROVEMENT FUND AND ALL FUTURE
INCREMENT OF AREA IV
It was moved by Alderman Mlinar, seconded by Alderman Torgerson, to
waive reading and adopt Resolution No. 8026. Motion unanimously
carried.
8. UNFINISHED BUSINESS
(a) CONSIDERATION OF REQUEST FOR LIQUOR STORE IMPROVEMENT TO REFINISH
SIDES OF BUILDING (DEFERRED APRIL 9, 1985)
Following discussion, the motion was made by Alderman Carls to ap-
prove cedar siding for $3,213. Alderman Mlinar seconded the mo-
tion, and it carried four to one with Alderman Mikulecky voting
nay.
(b) CONSIDERATION OF AWARDING BID FOR RECREATION FACILITY/POOL
(DEFERRED APRIL 16, 1985)
4
CITY COUNCIL MINUTES
APRIL 23, 1985
Chairman Barry Anderson presented a report and recommendation on
the awarding of bid for the recreation facility/pool project. Fol-
lowing lengthy discussion, the motion was made by Alderman Mlinar
to approve and award the low bid to E. J. Pinske Builders for
$1,132,200 as recommended, including flooring and equipment, with
the proposed financing to be from money currently available in the
construction fund and an additional $100,000 from federal revenue
sharing, with reviewal at year end. Alderman Carls seconded the
motion, and it unanimously carried.
Alderman Mikulecky moved to set a public hearing on May 14, 1985 at
8:00 P.M. for $100,000 federal revenue sharing money. The motion
was seconded by Alderman Torgerson and carried unanimously.
(c) REVIEW OF FORMER SATTERLEE PIT SITE
City Administrator Plotz presented a review of the site. After
discussion, it was moved by Alderman Torgerson, seconded by Alder-
man Mlinar, to reject the Satterlee pit site for the proposed
wastewater treatment plant. Motion unanimously carried.
(d) CONSIDERATION OF ESTABLISHING JUST COMPENSATION OF PROPERTY OWNED
BY MRS. GILBERT BOLDT (DEFERRED APRIL 9, 1985)
See 8-(f) for action taken.
(e) CONSIDERATION OF ESTABLISHING JUST COMPENSATION OF PROPERTY OWNED
BY HENRY "CHRIS" KADELBACH (DEFERRED APRIL 9, 1985)
See 8-(f) for action taken.
(f) CONSIDERATION OF ESTABLISHING JUST COMPENSATION OF PROPERTY OWNED
BY MR. & MRS. EUGENE SCHIMMEL (DEFERRED APRIL 9, 1985)
Following discussion of the three properties as a possible site for
the new wastewater treatment plant, Alderman Mlinar moved to estab-
lish just compensation in the amount of the appraised value and to
authorize the City Attorney to make an offer to purchase the Boldt
property for $181,640 and Kadelbach property for $26,942, with the
exception of the Schimmel property, and to waive reading and adopt
Resolution No. 8017. The motion was seconded by Alderman Carls and
unanimously carried.
(g) CONSIDERATION OF AWARDING BID FOR REPAIR GROUND STORAGE RESERVOIR
(DEFERRED APRIL 18, 1985)
After discussion, the motion was made by Alderman Carls to approve
and award the bid to the contractor Acton Construction, Inc. for
$154,965 as recommended. Alderman Torgerson seconded the motion,
and it carried unanimously.
CITY COUNCIL MINUTES
APRIL 23, 1985
(h) CONSIDERATION OF AWARDING BID FOR PARK TRACTOR
(DEFERRED APRIL 22, 1985)
Following discussion, it was moved by Alderman Mlinar to approve
the low bid from Teply Equipment Inc. of $12,000 for a used Inter-
national #886 tractor, less trade-in of a 1968 John Deere 20-20.
The motion was seconded by Alderman Torgerson and unanimously car-
ried.
9. NEW BUSINESS
(a) CONSIDERATION OF DELINQUENT WATER AND SEWER ACCOUNTS
Alderman Carls moved to authorize discontinuation of service as
recommended, with the exceptions noted. Motion seconded by Alder-
man Mlinar and carried unanimously.
(b) CONSIDERATION OF OFFER FROM MR. & MRS. LLOYD SCHLUETER TO PURCHASE
CITY OWNED LOT NO. 11, BLOCK 3, SELCHOW-JORGENSON SUBDIVISION
Following discussion, the motion was made by Alderman Carls to ap-
prove the offer of purchase in the amount of $10,000 from Mr. and
Mrs. Lloyd Schlueter and to order preparation of an ordinance
authorizing the sale. Alderman Torgerson seconded the motion, and
it unanimously carried.
(c) CONSIDERATION OF REQUEST BY LEONARD MILLER TO CONTINUE FARMING CITY
LAND ADJACENT TO SECOND AVENUE BRIDGE AND ERIE STREET
After discussion, Alderman Mikulecky moved to approve the request
for Leonard Miller to farm the city land rent free on a year to
year basis. The motion was seconded by Alderman Torgerson and
carried unanimously.
(d) CONSIDERATION OF CONDITIONAL USE PERMIT REQUESTED BY QUENTIN
LARSON/DOUG DOBRATZ WITH FAVORABLE RECOMMENDATION OF PLANNING
COMMISSION
Following discussion, it was moved by Alderman Mlinar, seconded by
Alderman Mikulecky, to approve the conditional use permit and to
waive reading and adopt Resolution No. 8022. Motion unanimously
carried.
(e) CONSIDERATION OF CONDITIONAL USE PERMIT REQUESTED BY LEONARD
RIEMANN WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION
After discussion, Alderman Mlinar moved to approve the conditional
use permit and to waive reading and adopt Resolution No. 8023. The
motion was seconded by Alderman Mikulecky and carried unanimously.
0
CITY COUNCIL MINUTES
APRIL 23, 1985
(f) CONSIDERATION OF SIDEYARD VARIANCE AS REQUESTED BY LEONARD RIEMANN
WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION
Following discussion, the motion was made by Alderman Mlinar, sec-
onded by Alderman Mikulecky, to approve the sideyard variance and
to waive reading and adopt Resolution No. 8024. Motion unanimously
carried.
(g) CONSIDERATION OF SKETCH PLAN SUBMITTED BY GERALD GASSMAN (WITHIN
TWO MILE RADIUS) WITH FAVORABLE RECOMMENDATION OF PLANNING
COMMISSION
After discussion, Alderman Carls moved to approve the sketch plan
and to recommend approval to the County. The motion was seconded
by Alderman Torgerson and carried unanimously.
(h) CONSIDERATION OF USING HUTCHMOBILE ON JUNE 16, 1985 FOR AIRPORT
DEDICATION
Following discussion, it was moved by Alderman Mlinar to approve
the use of the Hutchmobile and to waive the fare. Alderman Carls
seconded the motion, and it unanimously carried.
(i) CONSIDERATION OF ON -SALE NON -INTOXICATING MALT LIQUOR LICENSES:
1. PIZZA HUT
2. J'S PIZZA GARTEN
3. GOLD COIN CHINESE RESTAURANT
4. GODFATHER'S PIZZA
5. LITTLE CROW BOWLING LANES
6. CROW RIVER COUNTRY CLUB
The motion was made by Alderman Mlinar, seconded by Alderman Tor-
gerson, to approve and issue the licenses. Motion carried unani-
mously.
(j) CONSIDERATION OF OFF -SALE NON -INTOXICATING MALT LIQUOR LICENSES:
1. HUTCHINSON WAREHOUSE GROCERY
2. HUTCHINSON TOM THUMB FOOD MARKET
3. SOUTHTOWN MOBIL
4. ERICKSON'S BIG "D" SUPERMARKET
5. ONE-STOP GAS 'N GROCERY
6. GEORGE'S FOOD & FUEL
Alderman Mikulecky moved to approve and issue the licenses. The
motion was seconded by Alderman Mlinar and unanimously carried.
7
CITY COUNCIL MINUTES
APRIL 23, 1985
(k) CONSIDERATION OF REQUEST FOR JAYCEE WATER CARNIVAL PERMITS:
1. PARADE PERMIT
2. DANCE PERMIT
3. FIREWORK'S PERMIT
4. PERMISSION TO CLOSE STREETS AND USE LIBRARY SQUARE
The motion was made by Alderman Carls to approve and issue the per-
mits and to waive fees. Alderman Mlinar seconded the motion, and
it carried unanimously.
(1) CONSIDERATION OF STOP SIGN ON CORNER OF THIRD AVENUE SOUTHEAST AND
JEFFERSON STREET
Following discussion, it was moved by Alderman Carls, seconded by
Alderman Mlinar, to approve the stop sign and order preparation of
an Ordinance. Motion unanimously carried.
(m) CONSIDERATION OF SETTING PUBLIC HEARING DATE FOR LIQUOR LICENSE
ISSUANCE (LARRY BETHKE, VICTORIAN INN)
After discussion, Alderman Torgerson moved to set a public hearing
for May 14, 1985 at 8:00 P.M. The motion was seconded by Alderman
Mikulecky and carried unanimously.
(n) CONSIDERATION OF SECURITY LIGHT IN REAR OF LIQUOR STORE
Following discussion, the motion was made by Alderman Torgerson,
seconded by Alderman Carls, to approve the security light. Motion
unanimously carried.
(o) CONSIDERATION OF COUNCIL APPROVAL FOR SALE OF PARCEL B PROPERTY ON
LEWIS AVENUE ACCORDING TO CITY SUBDIVISION ORDINANCE
After lengthy discussion and presentation of a petition signed by
concerned neighbors opposing the division of the lot, the motion
was made by Alderman Mikulecky to instruct the Building Official to
review the setbacks and give an opinion for the next Council meet-
ing. Motion seconded by Alderman Torgerson and carried three to
two, with Aldermen Torgerson and Mikulecky and Mayor Stearns voting
aye and Aldermen Carls and Mlinar voting nay.
(p) CONSIDERATION OF ENGINEERING SERVICE FOR WATER RESERVOIR
Following a report by City Administrator Plotz, the motion was made
by Alderman Mlinar to approve the RCM engineering service for the
water reservoir. The motion was seconded by Alderman Mikulecky and
carried unanimously.
CITY COUNCIL MINUTES
APRIL 23, 1985
(q) CONSIDERATION OF ENGINEER'S REPORT FOR IMPROVEMENT PROJECT NO.
85-01-39
After discussion, Alderman Mlinar moved to approve the engineer's
report and to waive readings and adopt Resolutions No. 8027, No.
8028, and No. 8029. Alderman Mikuleeky seconded the motion, and it
unanimously carried.
(r) CONSIDERATION OF SETTING PUBLIC HEARING DATE FOR LIQUOR LICENSE
ISSUANCE (GARY MILLER)
This item was withdrawn from the agenda.
10. MISCELLANEOUS
(a) COMMUNICATIONS FROM CITY ADMINISTRATOR
City Administrator Plotz commented on several of the items covered
in his newsletter. He reported a hearing will be held May 1 in St.
Paul regarding the local government aid formula. A meeting with
MN/DOT and the City Council will be arranged by the City Engineer,
and it was suggested that it be held on May 7 during the special
Council meeting. The petitioned traffic signal light on Highway 7
West will be discussed at said meeting. In closing, Mr. Plotz
informed the Council that the priorities No. 11-20 had been rated
and were ready for distribution.
(b) COMMUNICATIONS FROM MAYOR ROBERT H. STEARNS
Mayor Stearns reported that he had received a complaint from Joe
Wesley regarding the location of the transformer on the Wigen park-
ing lot. It blocks the visibility of his store's back door.
After discussion, no action was taken and the item will be placed
on the next Council agenda.
(c) COMMUNICATIONS FROM ALDERMAN PAT MIKULECKY
Alderman Mikuleeky inquired about the status of the Nemitz parking
lot assessment problem and asked if it had been resolved. City
Attorney Schaefer stated he was working on it.
11. CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS
(a) VERIFIED CLAIMS
The motion was made by Alderman Mlinar, seconded by Alderman Carls,
to approve the claims and authorize payment from the appropriate
funds. Motion unanimously carried.
9
CITY COUNCIL MINUTES
APRIL 23, 1985
12. ADJOURNMENT
There being no further business, the meeting adjourned at 12;00 mid-
night.
10