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09-01-1992 CCMJ MINUTES SPECIAL CITY COUNCIL MEETING TUESDAY, SEPTEMBER 1, 1992 The special meeting was called to order by Mayor Ackland at 5:00 P.M. The following were present: Mayor Paul L. Ackland, Councilmen Craig Lenz, John Mlinar, Marlin Torgerson, and Don Erickson. Also present: City Administrator Gary D. Plotz, City Engineer John Rode - berg, and City Attorney G. Barry Anderson. Attorney Anderson presented the following background information regarding the new Cash Wise store. In January or February 1992 the City received a proposal from Developers Diversified to build an expanded grocery store at the site adjacent to the Hutchinson Mall. Then in June 1992 the City received written documentation. On July 15, 1992, there was a meeting for discussion with Developers Diversified, Cash Wise, Jim DeMeyer representing the Lunds, and others. At that time the subdivision agreement was discussed regarding the improvements and assessments for South Grade Road and Century Avenue. There was a commitment by Developers Diversified and an indemnity to the City for a program in which Cash Wise would be assessed for the South Grade Road area and Century Avenue. The remainder would be assessed to the Mall, including K -Mart. On August 10, 1992, the City was advised by Developers Diversified that they would not go along with the previous commitment, and their representative did not have authority to speak on behalf of the company. The assessment policy of the subdivision agreement was revised accordingly to reflect the consent of K -Mart and other interested parties. The City was subsequently informed that K -Mart would not issue consent to a change in the existing Mall sub- division agreement to reflect percentage. Attorney Anderson stated the City Council had several options available, namely: (1) do nothing and leave things as they were; (2) project the proposed subdivision agreement and not authorize anything; (3) go along with the program as previously prepared and require the consent of K -Mart; (4) seek a revision to the existing subdivision agreement with K -Mart's consent, changing the percent- ages but not requiring K -Mart to sign off on the assessments for Century Avenue; and (5) take a different approach relating to assessments and simply assess all properties in the Mall for improvements to both South Grade Road and Century Avenue on the theory that all properties within the existing Mall plat, as well as Mall Plat I and Mall Plat II, will receive some benefit from the improvements. During discussion, the subdivision agreement and its contents were reviewed. It was recommended to adopt a fair assessment formula which would be based on the building size. The subdivision SPECIAL CITY COUNCIL MEETING - SEPTEMBER 1, 1992 agreement did not require running foot. It was pointed out that traffic improvements on South Grade Road would benefit the Mall. Attorney Anderson stated the ideal situation would be to have a waiver from all of the key parties regarding the Century Avenue and South Grade Road projects and to have Developers Diversified indemnify the City for any exposure on the Century Avenue project. Jerry Cyncynatus of Developers Diversified stated he was not involved in the initial discussions with the City. However, he had no disagreement with what the City Attorney presented. He further stated that they could not obtain consent from the K -Mart owner although they were contractually obligated to the agreement when the property was purchased. Mr. Cyncynatus felt the Century Avenue assessment should not be included as part of the agreement. He stated other viable alter- natives needed to be addressed. Following discussion, Developers Diversified agreed to cooperate with the assessments for South Grade Road and Century Avenue. They will pay their fair share of the assessments and not oppose the improvements. The motion was made, seconded and unanimously carried, to approve the methodology set forth for the large scale mall developments and to approve the subdivision agreement as amended to reflect changes in the method of assessment. Councilman Torgerson moved to set the maximum preliminary tax levy limit at $3,201,407 upon the recommendation of the Finance Direc- tor. Motion seconded by Councilman Mlinar and unanimously carried. Administrator Plotz reported on the interim residential refuse con- tract for the month of October, 1992. Both Witte Sanitation and Aagard West had indicated an interest. Discussion followed regard- ing a negotiated rate with the hauler. Councilman Lenz moved that the City Administrator send out quota- tion proposals to three of the closest landfills to obtain a writ- ten proposal. Motion seconded by Councilman Torgerson and unani- mously carried. Councilman Torgerson suggested an open house at City Hall to allow the public to view the facility and to obtain input of suggestions for future use of the building once it is vacated. There being no further business, the meeting adjourned.