08-03-1979 CCMMINUTES
SPECIAL MEETING - HUTCHINSON CITY COUNCIL
FRIDAY, AUGUST 3, 1979
The special meeting was called to order by Mayor Black at 8:00 A.M., with the following
present: Aldermen Westlund, Gruenhagen and Huntwork in addition to Mayor Black. Absent:
Alderman Peterson. Also present were: Administrative Assistant Plotz, City Engineer/
Public Works Director Priebe, and Realtor Richard Peterson.
Administrative Assistant Plotz reported on a meeting held August 2, 1979, at which time
Winslow Chamberlain. and Don Oleson of the Holiday Inn were present. It was reported by
Mr. Chamberlain that the Holiday Inn will have a moratorium on all future franchise ap-
plications as of August 1, 1979; however, he had requested a slot be reserved for Hutch-
inson. A deposit fee'.of $55,000 must accompany the application, which is not refundable.
Therefore, the major investors wish to be assured they should go ahead before investing
this amount of money.
Richard Peterson informed the Council that the Holiday Inn was satisfied with the acre-
age of the downtown site, and they agreed to design the motel in accordance with the
land available. Although the investors feel the downtown site is first choice, a second
alternative location has been selected; namely, the Bonniwell property of 10.8 acres
west of town. It would not require increment financing.
Administrative Assistant Plotz remarked the Farmers Elevator did not want to put in side
track as loading tracks would cost $100,000. At present they have the potential of hav-
ing one track for the stacking of 50 cars.
Mayor Black informed the Council he had researched the railroad situation and discovered
their easement had expired. The railroad was put on Second Avenue as a result of two
20 -year franchises dated 1942 and 1946, which expired some time ago. Concern was ex-
pressed that if the railroad were forced to abandon this area, they might also abandon
the other railroad line, which would affect three or four businesses in town. The City
has offered to trade land in the Industrial Park to relocate the railroad line for prop-
erty in the motel site based on appraisals. The only problem seems to be the elevator
site. The railroad looks favorably upon the project. The Mayor stated he felt hesitant
about making any decision until some of the questions were answered regarding the rail-
road.
City Engineer/Public Works Director Priebe reported on a meeting held July 31, 1979 with
Ray Zimmermann, elevator manager, regarding the railroad situation. He referred to a
letter sent the Farmers Elevator and their response to it. It will cost the railroad
$100,000 to put in a three track spur where the elevator is located, with the elevator
paying the cost of the track. It would also cost the railroad $100,000 to construct
the tie-in trackage north of the Crow River. The spur line would close off some of the
elevator's present stacking ability; and they, therefore, requested the railroad to put
in the track as a compromise.
Administrative Assistant Plotz explained an alternative developed for an approximate
$125,000 savings of cost, including relocation benefits, on the motel project.
Minutes
August 3, 1979
Realtor Peterson remarked the motel could be built with the railroad tracks left where
they are, but they prefer them removed. The four lots where the tracks presently are
would be used for parking and future expansion; however, they are not needed at this
time. He then asked for a Resolution from the Council granting approval for the inves-
tors to proceed on the basis of the recommendation approved by the Downtown Development
District Advisory Board. Mr. Peterson further requested approval to retain the liquor
store at its present location, subject to relocating the store if sufficient tax incre-
ments are made available at a later time.
After considerable discussion, it was moved by Alderman Westlund to waive the reading
and adopt Resolution No. 6387 entitled Resolution Affirming Intent of the Motel Develop-
ment Project. Seconded by Alderman Huntwork, the motion carried unanimously.
The Hutchinson Area Chamber of Commerce and Hutchinson Ambassadors requested permission
to hold the Great Bed Race on August 7, 1979 at 7:00 P.M., beginning on Harrington
Street to Linden Avenue.
Following discussion, the motion was made by Alderman Westlund, seconded by Alderman
Gruenhagen and carried unanimously, to approve the request to conduct the Great Bed
Race.
There being no further business to come before the Council, the meeting adjourned at
8:50 A.M.
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