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09-01-1977 CCMMINUTES SPECIAL MEETING - HUTCHINSON CITY COUNCIL THURSDAY, SEPTEMBER 1, 1977 Mayor Black called the special meeting to order at 8:07 A.M. Those in atten- dance were Aldermen Westlund, Haag, B. Peterson, and K. Peterson in addition to Mayor Black. Also present were Administrative Assistant Plotz and Community Development Director Pauley, as well as Clarence Simonowicz of C.R.S. and Asso- ciates. a. Consideration of Downtown Development Program Mayor Black opened the discussion for comments from the audience regarding the Council's consideration of the Downtown Development Program. There be- ing no response, the discussion was referred to the Council. Inasmuch as Alderman Haag was absent from the last Council meeting, he asked for a review of the time schedule on the program. Mayor Black explained the procedure of events that would follow a final decision to proceed with the project. He further pointed out that the City has never used its power of eminent domain (condemnation) to acquire property but has always acquired property in the past through negotiation. The same policy will be followed unless it becomes necessary to use condemnation for this development, but only as an instrument of final resort. It was the consensus of the Council that condemnation of property would be used only as a necessity for the progress of the project. Alderman K. Peterson reminded the Council that this development is scheduled for up to 20 years for completion. She further pointed out that the popula- tion prediction for this four -county area is projected to reach 42,000 by the year 2000. Most of this growth will be in Hutchinson. Alderman Peterson expressed concern about financing the project. The developer will bear the bulk of the debt, but tax increments will also bear part of the cost. It was moved by Alderman Westlund, seconded by Alderman Haag, to waive read- ing and adopt Resolution No. 6005 entitled Resolution Adopting Downtown Development Objectives. Motion carried unanimously. b. Consideration of Reappointment of Downtown Development Committee Mayor Black made reference to a resolution to be adopted which expresses thanks to the Downtown Development Committee for their time and effort spent on this project and reappoints the following to the Committee: 4 P Council Minutes September 1, 1977 Don Abbott Marlin Torgerson Dennis Hukried Ralph Westlund Lloyd Torgrimson Mrs. Richard Dobratz Jay Alrick Skip Quade Tom Savage Tom O'Connell Robert Stearns Robert Otte, Ex -Officio After discussion, it was moved by Alderman K. Peterson, seconded by Alder- man Westlund, to waive reading and adopt Resolution No. 6006 entitled A Resolution Thanking and Reappointing the Downtown Development Committee. Motion carried unanimously. C. Consideration of Assignment of Administrative Responsibility Mayor Black mentioned that inasmuch as Don Pauley will not be available after September 30, 1977 to assist with the program, he has asked Administrative Assistant Plotz to work with Clarence Simonowicz during the initial stages. Once the developer has been secured, additional help will be needed in nego- tiation and acquisition stages of the program. Depending on the progress of the development, more personnel may be needed later. After discussion, it was moved by Alderman Westlund, seconded by Alderman K. Peterson, to waive reading and adopt Resolution No. 6007 entitled Resolu- tion Assigning Administrative Responsibility for Downtown Development. Mo- tion carried unanimously. d. Consideration of Entering into Professional Services Agreement with C.R.S. and Associates Alderman Westlund asked Clarence Simonowicz how much time would be spent each month on the development project. Mr. Simonowicz responded that considerable time would be spent the first month and then gradually less. The best arrange- ment for payment, he felt, would be on an hourly basis. It was mentioned that if bonding commences, the services of C.R.S. and Asso- ciates will be reimbursed from bonds; otherwise, payment will be from the general fund. Alderman Westlund noted that a fee in the amount not to exceed $1,500 per month for a period up to one year has been stipulated for this purpose. After discussion, it was moved by Alderman Westlund, seconded by Alderman Haag, to authorize the Mayor and City Clerk to enter into and sign an Agree- ment for Professional Services with C.R.S. and Associates. Motion carried unanimously. e. Consideration of Advertisement for a Developer After discussion, it was the consensus of the Council that the Downtown -2- Council Minutes September 1, 1977 Development Committee should review the methods for selecting and adver- tising for a developer inasmuch as this action will have a great impact on the entire community. It was pointed out by the Mayor, as well as other Council members, that much enthusiasm has been shown for the program, with little or no negative re- actions. This should be one of the most progressive steps the Council has taken in a long time, thanks to Clarence Simonowicz and those working with him. It was moved by Alderman K. Peterson, seconded by Alderman Westlund, to refer the advertisement for a developer to the Downtown Development Com- mittee. Motion carried unanimously. f. Budget 9. Administrative Assistant Plotz informed the Council that the 1978 budget must be certified by October 11, 1977 and a resolution adopted approving the new budget. It was decided by the Council to hold an all -day budget meeting on Tuesday, September 13, 1977, starting at 9:00 A.M. Dealers Car Auction City Engineer/Public Works Director Priebe reported that there will be a dealers car auction on September 9 and 10, 1977 in Minneapolis. He requested authorization from the City Council to bid on two vehicles, one for the Build- ing Inspector's Department and the other to replace the Park Department ve- hicle. After discussion, it was moved by Alderman Westlund, seconded by Alderman Haag, to authorize Marlow Priebe and Gary D. Plotz to attend the dealers car auction and to pay a maximum amount of $750 per vehicle. Motion carried unanimously. h. Request for Permit Administrative Assistant Plotz reported that the City has received a request from William L. Peterson of the Bargain Mart in Minneapolis to secure a per- mit to hold a furniture sale at the New Armory from September 26 to October 9, 1977. The City ordinance states that a fee of $25 a day be charged for tran- sient merchants to hold such sales. The Council was divided in opinion on the fee charged for an extended period of time. It was suggested that the ordinance be amended. After considerable discussion, it was moved by Alderman Westlund, seconded by Alderman K. Peterson, to amend the City ordinance to read"$25 a day, with -3- Council Minutes September 1, 1977 a maximum of $100." Aldermen Westlund and K. Peterson voted yes; Aldermen Haag, B. Peterson, and Mayor Black voted no. The motion was defeated. It was moved by Alderman Haag, seconded by Alderman B. Peterson, to approve the request and issue the permit under the existing ordinance, subject to a police reference check. Motion carried unanimously. i. Adjournment There being no further business, the special meeting was adjourned at 9:30 A.M. on motion by Alderman Westlund, seconded by Alderman Haag. Motion car- ried unanimously. -4-