Loading...
08-14-1979 CCMMINUTES REGULAR MEETING - HUTCHINSON CITY COUNCIL TUESDAY, AUGUST 14, 1979 1. CALL TO ORDER The meeting was called to order by Mayor Black at 7:30 P.M., with the following members present: Aldermen Peterson, Gruenhagen and Huntwork, in addition to Mayor Black. Absent: Alderman Westlund. Also present were: Administrative Assistant Plotz, City Engineer/Public Works Director Priebe, and City Attorney Schantzen. 2. INVOCATION In the absence of a pastor, there was a time of silent prayer. 3. MINUTES The minutes of the Regular Meeting of July 24, 1979 and Special Meetings of July 26, 1979, August 1, 1979, August 3, 1979 and August 7, 1979 were approved as presented upon motion by Alderman Peterson, seconded by Alderman Gruenhagen and unanimously carried. 4. PUBLIC HEARING - 8:00 P.M. (a) CONSIDERATION OF PROPOSED ASSESSMENT ROLL NO. 74 At 8:10 P.M. Mayor Black called to order the Public Hearing on the proposed assessment rolls and read Publication No. 2196, Notice of Hearing on Proposed Assessment Project 78-03, Assessment Roll 74. Mayor Black commented a hearing was held two years ago regarding this proposed project, and it was determined to proceed from a topographical map. He then called on the City Engineer/Public Works Director to explain the problem in the southeast area of the City. City Engineer/Public Works Director Priebe explained that for the past several years following heavy rains, there has been deep water standing. The outlet line has been rebuilt to handle this water and serves the lateral lines west to Main Street; also, it picks up water on Franklin as far south as T.H. 15. The major portion of the cost for the project has been borne by the City. Nick Kisling Commented on the storm sewer built in 1960. Asked 736 Hassan S. why he was being assessed for this one in the amount of $130+. It had never gone to Fifth Avenue before. Marlow Priebe Informed Mr. Kisling he was assessed for the lateral City Engineer line, not for the trunk which was built at this time. The trunk line has never been assessed. This 1�4 Council Minutes August 14, 1979 Charles Hutchins 914 Craig Avenue Mayor Black Unidentified Lady line will replace part of the previous line and reduce the overload of the area. Asked what the assessment would cost. Stated he did not receive an assessment notice. Informed Mr. Hutchins he was not in the area to be assessed for the project. Asked if the amount of $97.57 would be for the work on Fifth Avenue. Jim Riley Stated he didn't feel this drain would be of any 465 Main N. benefit for those with property on the south end of Hassan. The present problems are not problems of the area where property is owned but rather a problem of drainage in the other end of town. He has had an assessment before. Raised a question on the old line. Wanted to know where he could find out if this was an assessment against the trunk line. Mrs. Alvina Ellis Stated she had been assessed for the sewer in 1960. 746 S. Main Asked why she should be assessed again. There was no way her water could run over to the line. She refused to pay for another assessment. There being no one else present wishing to be heard, it was moved by Alderman Peterson to close the hearing at 8:35 P.M. Seconded by Alderman Gruenhagen, the motion unanimously carried. (b) CONSIDERATION OF PROPOSED ASSESSMENT ROLL NO. 75 Mayor Black called the hearing on proposed assessment roll No. 75 with the reading of Publication No. 2197, Project 78-03. He then asked if there was anyone present wishing to be heard regarding Assessment Roll No. 75. There being no one present to be heard, the hearing was declared closed at 8:37 P.M. on motion by Alderman Peterson, seconded by Alderman Gruenhagen, and carried unanimously. (c) CONSIDERATION OF PROPOSED ASSESSMENT ROLL NO. 76 Mayor Black called the hearing on proposed assessment roll No. 76, Project 78-01, with the reading of Publication No. 2198. Eldred Miller Asked if the difference on his assessment had to 1115 Jefferson do with a curb put in in 1977 and a credit had been issued on Lot 7, Miller Townhouse Addition. -2- Council Minutes August 14, 1979 Marlow Priebe Commented the total assessment did not include a City Engineer credit, but he thought Mr. Miller was entitled to one so he would check into the matter. There being no one else present wishing to be heard, it was moved by Alderman Peterson, seconded by Alderman Gruenhagen and unanimously carried, to declare the hearing closed at 8:45 P.M. (d) CONSIDERATION OF PROPOSED ASSESSMENT ROLL NO. 77 Mayor Black called the hearing on proposed assessment roll No. 77 with the read- ing of Publication No. 2199, Project 78-01 and 78-02. Charles Hutchins Asked if any of this work would be done on Craig. 914 Craig Avenue Stated the assessments on Lot 11 were paid when he purchased the property. There being no one else present wishing to be heard, it was moved by Alderman Peterson to close the hearing at 8:50 P.M. Seconded by Alderman Gruenhagen, the motion unanimously carried. (e) CONSIDERATION OF PROPOSED ASSESSMENT ROLL NO. 78 Mayor Black called the hearing on proposed assessment roll No. 78, Project 78-04, with the reading of Publication No. 2200. There being no one present wishing to be heard, the hearing was declared closed at 8:52 P.M. on motion by Alderman Huntwork, seconded by Alderman Gruenhagen, and unanimously carried. RESOLUTION NO. 6389 It was moved by Alderman Peterson, seconded by Alderman Huntwork, to waive reading and adopt Resolution No. 6389 entitled Adopting Assessment Roll No. 74, Project 78-03. Motion carried unanimously. RESOLUTION NO. 6390 It was moved by Alderman Peterson, seconded by Alderman Huntwork, to waive reading and adopt Resolution No. 6390 entitled Adopting Assessment Roll No. 75, Project 78-03. Motion carried unanimously. RESOLUTION NO. 6391 It was moved by Alderman Peterson, seconded by Alderman Huntwork, to waive reading and adopt Resolution No. 6391 entitled Adopting Assessment Roll No. 76, Project 78-01, as amended. Motion carried unanimously. -3- Council Minutes August 14, 1979 RESOLUTION NO. 6392 It was moved by Alderman Peterson, seconded by Alderman Huntwork, to waive reading and adopt Resolution No. 6392 entitled Adopting Assessment Roll No. 77, Project 78-01 and 78-02. Motion carried unanimously. RESOLUTION NO. 6393 It was moved by Alderman Peterson, seconded by Alderman Huntwork, to waive reading and adopt Resolution No. 6393 entitled Adopting Assessment Roll No. 78, Project 78-04. Motion carried unanimously. Mayor Black pointed out the interest rate per annum on the unpaid balance of assessments will be 7%. He further explained the procedure for paying the assessment costs. Assessment Rolls No. 74, 75, 76, 77, and 78 shall all be payable in equal annual installments extending over a period of 10 years. It was moved by Alderman Gruenhagen, seconded by Alderman Huntwork, to approve the 7% interest rate on the Assessment Rolls No. 74, 75, 76, 77 and 78. Motion unanimously carried. The Council meeting in the Council Chambers adjourned to reconvene in the Aud- itorium for the public hearing scheduled for 9:00 P.M. (f) CONSIDERATION OF INDUSTRIAL REVENUE BONDS FOR DEVELOPERS DIVERSIFIED - 9:00 P.M. Mayor Black called the public hearing to order at 9:00 P.M. and read Notice of Public Hearing On A Proposed Project and the Issuance of Industrial Development Revenue Bonds under the Municipal Industrial Development Act, Minnesota Stat- utes, Chapter 474, As Amended. He further reviewed the background whereby Developers Diversified first appeared before the City Council on January 23, 1979 and requested an industrial revenue bond for their shopping center. The matter was deferred to the February 13, 1979 meeting, and at that time the Council declined the request, with the option that should Developers Diversi- fied decide to provide expertise and financial assistance (investment) to the downtown development project, the Council would reconsider. On April 10, 1979 Developers Diversified returned to the Council with their request, and the dis- cussion was continued to the April 24, 1979 meeting. At the subsequent Coun- cil meeting action was deferred to June 26, 1979, at which time issuance of an industrial revenue bond was granted. On May 8, 1979 Alderman Peterson presented a letter to the Council in which he suggested a moratorium on the issuance of an industrial revenue bond for a period of six months; however, no action was taken on the recommendation. At the July 10, 1979 Council meeting it was necessary to set a public hearing date of August 14, 1979 at 9:00 P.M. due to a recent change in law. This made -4- Council Minutes August 14, 1979 the previous action invalid; therefore, the matter of issuing an industrial revenue bond to Developers Diversified must be reconsidered and acted upon. The public hearing was opened for comments or questions, with the following responding: Don Erickson Red Owl Asked for the reasons why the Council approved the bond after two previous unfavorable votes. Mayor Black Stated the Council has maintained an open policy of considering any request put before them. De- velopers Diversified had asked to be placed on the agenda and were given consideration. Dick Lennes Asked for a review of the Council's stand to give Hickory Lane attention and priority to the downtown retail com- plex and for the philosophy behind the switch in their policy. Mayor Black Commented about three years ago an advisory com- mittee was appointed to look at problems in the downtown area and to make recommendations for solu- tions to those problems. There have been various ideas and suggestions, and one of them was a recom- mendation to develop a shopping complex downtown. Subsequently, a hearing was held to attain the ideas and thoughts from the public as to what might be accomplished. The work then went forward from that point, and an advertisement was placed for a de- veloper of the downtown project. The City Council hired the A & P Group, with a non-exclusive contract, to work toward the development and accomplishment of established goals. A lot of ideas and printed words went into the proposal. In October, 1978 the committee was formally established as the Downtown Development District Advisory Board to comply with State Statutes. During this period of time there was some vacillation on the part of the Board and the Council as to location of the development. Also, during this same period of time, the 40 -acre parcel on Highway 15 South was being developed and had met City requirements. Both the City and Down- town Development Board were aware of the fact a shopping complex was being proposed for this sec- tion of town. Due to a change in state laws on industrial revenue bond financing, it was possible to secure a higher dollar limit. Therefore, Devel- opers Diversified asked the City for a bond. -5- Council Minutes August 14, 1979 Ted Beatty Stated he was against granting industrial revenue Snyder Drug bond financing. The business center should not be transferred to the peripheral area of town. Much of the downtown will be destroyed as the business goes to the shopping center and away from downtown. Ward Haugen Interested in keeping the City tax base downtown. GTC Auto Parts He thought the downtown would decline rapidly if the mall is built, a detriment to the community. Businessmen take pride in the downtown. There will be more empty stores if the mall is built, and the downtown will be less desirable. Stated he assumed the Council had a financial statement from Developers Diversified. Jim DeMeyer Stated he was one of the parties working on the de- DeMeyer Realty velopment of the shopping center south of Hutchinson. It was never his intent to bring about any diffi- culties or problems for the community. He expressed disappointment in the opposition to the project. Measurement of success discussed, for the most part, has been to delay progress or moving ahead. Referred to the article in the Leader where a Duluth speaker had come to Hutchinson to discuss shopping centers. He stated he disagreed with the statement that the tax base would dwindle, as well as some other points. The proposed mall would bring in new tax revenues to the City. Commented that the reason for the hearing was be- cause of the failure of downtown merchants to pro- vide for the community. Some years ago opposition was shown to Plaza 15, but it helped the downtown and brought new customers. There are adjustments that must be made during change, and everyone is subject to the natural process of change. There has been failure since the last shopping center was built, and now another group has come in be- cause it sees a market here. Stated he would like to see a continuation of growth and cooperation in working together. The Council has provided for the downtown group, but this outside group has spent their own money to develop the shopping center. They only ask for a common place in the money market. Inasmuch as the community will benefit, he asked for a favor- able response to their request. Council Minutes August 14, 1979 Skip Quade, Chm. Stated he was confused because of statement down- Quade's town merchants are against progress. They feel development is important, but it should be in the downtown area. The reality of goals was very near, but now work has stopped on the downtown center. There is not room in the City for two equal develop- ments. Where do we stand? What do we want to do? A new shopping center will require additional police protection, utilities, etc., which the downtown has already. Robert Schwanke Asked if developer would go ahead with the project Mary Lue's Nit Pik if they did not get a tax break on bonds. He had heard the organization was ready to drop plans for the project if they did not get approval. If they were going to build without the bond, they would have confidence in the project. Jim DeMeyer Stated intentions are to provide an attractive ex- DeMeyer Realty terior. If money could not be obtained, it might not be possible to achieve this goal. Harold Beytien Commented on Mr. DeMeyer's remarks regarding down - Retired town not keeping up. Stated all stores are in good shape. Asked why such a remark was made. Jim DeMeyer Stated he was not shorting the community of iden- tity. He has a group who is willing to offer more to the community than is now available. Harold Beytien Commented it was because they could get a cheaper interest rate. Milton Lueneburg Remarked it was the "professionals" who threw Family Rexall wrenches into the downtown project. The City was a "cow to be milked." It takes time to proceed with a project. Now the Council has to make a far-reaching decision. Asked if an economic im- pact study had been requested. Jim DeMeyer Replied that time element is not justifiable. The Developers Diversified did studies at their own expense and on their own time. Bob Carney Said he was a concerned citizen and businessman. Crow River Warehouse He hadn't found one town in which a shopping cen- ter went in that it improved the downtown. With a —7— Council Minutes August 14, 1979 shopping center, the rent will be high so that chain stores will come in and money will leave the community. As a home owner, taxes will go up. Jeff Hoeft Referred to Mankato and the effect an outlying Resident (Teacher) shopping center had on its downtown. This may be the most important vote taken in Hutchinson, which will be far-reaching and have an effect on the downtown. Asked where values lie - with down- town or with shopping center or with local people? Not sure it is necessary to go to a shopping mall. Don Erickson Asked if an economic impact study would be ordered. Mayor Black Reported no study had been ordered. The initial economic study done by CRS stated a need for an additional 200,000square feet of retail business space to serve the present population. Skip Quade Commented there was a statement in the same study that the best location for the new development would be downtown. Duane Dickey Asked Mr. Quade if he felt the downtown was of DuMax, Inc. satisfaction as a whole. Skip Quade Stated Hutchinson needed additional retail space but felt it belonged downtown,as the study showed. There should be an upgrading of what is already here, and the downtown was on the brink of this accomplishment. They should be given this oppor- tunity. Duane Dickey Commented he was new to the community. It appears that past experience with shopping centers in a community has become an issue with what was ap- proved on the south side of town. Asked what kind of time element was being considered. Skip Quade Replied from the time the committee was made offi- cial in October, 1978 to the present, they are at the point of a four -fold program: 1) motel, 2) high rise apartment complex, 3) relocation of City and government center, and 4) retail development of downtown. They were very close to achieving item 4. It is premature to have another shopping; center come in at this time. If in two years nothing hap- pens downtown, Developers Diversified could build. Council Minutes August 14, 1979 Duane Dickey Asked if anything was in progress right now. The downtow n development cannot succeed without tax increment financing or bonds. He stated he believed in private enterprise. The downtown should be de- veloped, but at the same time a company which wants to invest money in the community should be allowed to do so. Further, he didn't feel the Council should be forced to make a choice of one project over the other. Skip Quade Pointed out he wasn't against private enterprise, but every decision of City government affects what is going to happen to private enterprise. It should be shaped around a strong central business district. He felt it should be possible to shape the destiny of the community. If enough space could be made available for a large chain, they would accept lo- cation downtown. He pointed out government takes a dim view on shopping centers. Duane Dickey Stated the reason government is taking a dim view was because they are asked to provide the money to build them. Dick Lennes Stated he would like to go on record opposing the action taken by the Council on industrial revenue bonds. He would prefer the Council put a morator- ium on issuance of bonds for a period of one year to allow the downtown to meet their goals. If Developers Diversified wished to go ahead with- out bonds, they were free to do so. Ron McGraw Commented he had not put enough time into keeping Attorney pace with the progress of the downtown project or mall south of town. Stated he represented a num- ber of downtown businessmen who have spent a great deal of time and energy (which represents dollars) on the downtown project. Hutchinson's founding fathers built the town with a central square and the business district around it. The easy route was to go outside the business district, but the central district should be saved. Reported the downtown businessmen are having dif- ficulty getting organized. They are busy with their own businesses and are not experts in development. They need time. Perhaps six months would be ade- quate. He thought an impact study was necessary, Council Minutes August 14, 1979 Jim DeMeyer Bob Carney Jim DeMeyer and there is money available for the study. All the "ingredients" people want are downtown, but there is nothing concrete to offer at present. Time will put them on an equal basis. Again stated that decay and changes in use are natural processes in a city, as in life. It is time for change. Asked if the downtown buildings would be useable in 15 years. "If the south goes, it will all go." Asked how much sales the shopping center would draw. Stated he did not have this information available. Mayor Black Remarked he would like to make two comments in closing. First, the initial estimate showed that Hutchinson would have a demand for approximately 200,000 additional square feet of shopping space. One of the problems with the downtown area was that a substantial number of parcels in downtown area were owned by persons over 55 years of age, and there was no provision for continuation of the business. In regard to the different projects being consid- ered for the downtown area, 1) the motel is very close to becoming a reality; 2) the high rise is not an eminent accomplishment by choice of HUD. Monies will go to single family type housing in- stead of for the elderly; 3) the public service building has an architect working with the staff and is in the process of making preliminary plans for an estimated cost. Appraisals of the property site will be done and a referendum presented in the fall of 1979. Consultant Simonowicz In study made three years ago, it was reported that CRS & Associates 200,000 square feet of projected retail space was needed in the City. Retail space was defined as all kinds of space for retail, including not only over the counter but also cars, lumber yards, etc. He saw this space as about one-half "over the coun- ter" retail and one-half bulk retail not found in shopping centers or close -in downtown area. -10- Council Minutes August 14, 1979 Mayor Black Pointed out the City is not loaning the money for bond financing but is acting as the middle party. The developer has to find its own source of financ- ing and make arrangements for the bond sale. There has been some confusion about the legality of the bonds. He then referred to the August issue of Minnesota magazine in which an article mentioned some of the types of businesses being built with bond financing in the State of Minnesota. Bob Carney Shouldn't look at legality but rather at what is best for the community as a whole and what effect it will have. Mayor Black Replied that each Council member votes according to what he believes to be in the best interest of the total community. Joe Wesley Remarked many parallels have been made tonight. Wesley's Pharmacy Democracy is a very sticky thing, and it takes time to determine right and wrong. There is a strong business district, and it needs support given to it. The services for the development of the shop- ping center will be borne by the community. The importance of democracy is in time, and it is the Council's obligation to provide that opportunity. It was moved by Alderman Bruce Peterson to close the hearing at 10:18 P.M. Seconded by Alderman Gruenhagen, the motion unanimously carried. Mayor Black asked the Council members for their comments. Alderman Huntwork responded by stating he had a difficult time voting on this issue at the last meeting. He had made his decision based on what was in the best economic in- terest for the City. He felt it was unfair to consider this an abandonment of the downtown and pointed out it is costly to work on a downtown project. He further commented on the hotel and the City dollars involved to put it in the downtown area. The proposal for the shopping center promised to be an im- mediate revenue producer, and he estimated the revenue from the mall would be equal to half the revenue from the downtown businesses. (Note: at a later point in the Council meeting Mr. Huntwork corrected his statement since an error was made in the figures used to calculate the estimate of revenue from the shop- ping center.) Alderman Gruenhagen referred to the City's forefathers and their layout of the City. They established the downtown business area, but more businesses have come into town and the City has grown. It has reached the point where downtown -11- Council Minutes August 14, 1979 business district can no longer handle the community and serve it well. Sev- eral businesses have moved to the edge of town for need of more space. Ald- erman Gruenhagen stated he had drawn a three-quarter mile circle of both the downtown and new center site, and two-thirds of the residents live closer to the proposed shopping center than downtown. All of the people in Hutchinson have to be served. In closing, he commented that the downtown could resolve its problems by dressing uD the downtown and providing more parking. Alderman Peterson reported he had nothing to arld to the previous comments. He felt a decision should be delayed inasmuch as Alderman Westlund was absent to vote on the issue. Mayor Black remarked he didn't think it would be necessary to defer action un- til such time as Alderman Westlund was present. He then stated he had not in- tended to read a letter received from Alderman Westlund prior to the meeting in which he stated his intent to resign from the City Council. Since Mayor Black had not discussed it with Alderman Westlund, no action would be taken at this Council meeting on the letter of resignation. It was moved by Alderman Peterson to defer action on the industrial revenue bonds issue. There being no second, the motion died. Alderman Huntwork made the motion that industrial revenue bonds be granted to Developers Diversified in the amount of $8,600,000.00, subject to the adopted policy of the Council. The motion was seconded by Alderman Gruenhagen, with Aldermen Huntwork, Gruenhagen, and Peterson voting aye; the Chair abstained from voting, and the motion carried. It was moved by Alderman Huntwork, seconded by Alderman Gruenhagen and unani- mously carried, to waive reading and adopt Resolution No. 6394 entitled Resolu- tion Giving Preliminary Approval to A Project under the Municipal Industrial Development Act; Referring the Proposal to the Commissioner of Securities for Approval; and Authorizing Preparation of Necessary Documents. 5. COMMUNICATIONS, REQUESTS AND PETITIONS (a) CONSIDERATION OF REQUEST FOR DEAN O'BORSKY TO ATTEND 14TH ANNUAL CRIMINAL JUSTICE INSTITUTE ON AUGUST 27-29, 1979 Following discussion, the motion was made by Alderman Huntwork, seconded by Alderman Gruenhagen and unanimously carried, to approve Dean O'Borsky attend- ing the Criminal Justice Institute. -12- Council Minutes August 14, 1979 (b) CONSIDERATION OF REQUEST BY FREDDIE HARRIS TO SELL RELIGIOUS BOOKS DOOR-TO- DOOR IN HUTCHINSON After discussion, Alderman Gruenhagen moved to approve a permit for Freddie Harris to sell religious books. Seconded by Alderman Peterson, the motion carried unanimously. (c) CONSIDERATION OF REQUEST BY RALPH HAKEL TO MOVE RESIDENTIAL GARAGE Following discussion, it was moved by Alderman Gruenhagen, seconded by Alder- man Huntwork and unanimously carried, to grant approval for Ralph Hakel to move a residential garage, with the stipulations that he repair or replace the two overhead garage doors, square and plumb the building after moving, paint exterior siding and doors and purchase all necessary permits prior to the work being done. (d) CONSIDERATION OF REQUEST FOR HOMER PITTMAN AND ELDEN WILLARD TO ATTEND MINNESOTA BUILDING OFFICIALS ASSOCIATION SOUTHWEST REGION MEETING ON AUGUST 15, 1979 After discussion, the motion was made by Alderman Huntwork to approve atten- dance at the Minnesota Building Officials Meeting by Homer Pittman and Elden Willard. The motion was seconded by Alderman Gruenhagen and carried unanimously. (e) CONSIDERATION OF REQUEST FOR INVESTIGATOR WAAGE AND SGT. KIRCHOFF TO ATTEND 14TH ANNUAL CRIMINAL JUSTICE INSTITUTE ON AUGUST 27-29, 1979 Following discussion, Alderman Huntwork made the motion to approve Investigator Waage and Sgt. Kitchoff attending the Criminal Justice Institute. Seconded by Alderman Peterson, the motion unanimously carried. (f) DISCUSSION ON SALE OF LIQUOR ON ELECTION DAY BY VELVET COACH Judy Erickson, representing the Velvet Coach, appeared before the Council and inquired why the City prohibits the sale of liquor and/or non -intoxicating malt liquor on the day of elections, especially local elections. She cited an ex- ample of the last school election when a group of 15 to 20 came to their es- tablishment for a meeting and dinner. Since they could not purchase drinks, they left and went to Biscay for their meeting. She wondered why they had to be closed for local elections. Mayor Black commented that it was a state law at the time the ordinance was adopted. Then the law was changed, leaving the option to the City to determine what they wanted to do. The Council felt the City election was just as impor- tant as state or national elections so they left the ordinance the same, with no sale of liquor allowed on local election days. -13- Council Minutes August 14, 1979 Ms. Erickson remarked that the Velvet Coach has an obligation under their liquor license to serve customers who may come from out of town. Before they were annexed, they were under a county ordinance and didn't have to comply with the City's ordinances. Mayor Black stated he was not in favor of changing the ordinance. He felt it gave a uniform pattern for closing during elections. He further pointed out the City has an obligation to enforce its laws. Ms. Erickson responded they were asking for consideration of changing the or- dinance and intended to pursue it. 6. RESOLUTIONS AND ORDINANCES (a) RESOLUTION NO. 6388 - TRANSFERRING $10,000 FROM LIQUOR STORE TO GENERAL FUND Following discussion, it was moved by Alderman Peterson, seconded by Alderman Huntwork and unanimously carried, to waive reading and adopt Resolution No. 6388 entitled Transferring $10,000 from Liquor Store to General Fund. (b) ORDINANCE NO. 9/79 - AMENDING SECTION 10.05 E & F OF ZONING ORDINANCE NO. 464 OF THE CITY OF HUTCHINSON, ENTITLED, SIGNS After discussion, the motion was made by Alderman Huntwork to waive reading and adopt Ordinance No. 582 entitled Amending Section 10.05 E & F of Zoning Ordinance No. 464 of the City of Hutchinson, Entitled, Signs. Seconded by Alderman Gruenhagen, the motion unanimously carried. 7. REPORTS OF OFFICERS. BOARDS AND COMMISSIONS (a) BUILDING OFFICIAL'S MONTHLY REPORT - JULY 1979 There being no discussion, the report was ordered by the Mayor to be received for filing. (b) MINUTES OF HOSPITAL BOARD DATED MAY 15, 1979 AND JUNE 19, 1979 There being no discussion, the minutes were ordered by the Mayor to be re- ceived for filing. (c) MINUTES OF AIRPORT COMMISSION DATED JULY 26, 1979 There being no discussion, the minutes were ordered by the Mayor to be re- ceived for filing. (d) MINUTES OF PARK & RECREATION BOARD DATED JULY 11, 1979 -14- Council Minutes August 14, 1979 There being no discussion, the minutes were ordered by the Mayor to be re- ceived for filing. (e) MINUTES OF "SENIORS ACTIVITY CENTER" ADVISORY BOARD DATED JULY 10, 1979 There being no discussion, the minutes were ordered by the Mayor to be re- ceived for filing. (f) MINUTES OF DOWNTOWN DEVELOPMENT BOARD DATED JULY 31, 1979 AND AUGUST 7, 1979 There being no discussion, the minutes were ordered by the Mayor to be re- ceived for filing. (g) MINUTES OF TRANSPORTATION BOARD DATED AUGUST 8, 1979 There being no discussion, the minutes were ordered by the Mayor to be re- ceived for filing. (h) MINUTES OF NURSING HOME BOARD DATED JULY 19, 1979 There being no discussion, the minutes were ordered by the Mayor to be re- ceived for filing. 8. UNFINISHED BUSINESS (a) CONSIDERATION OF RECOMMENDATION FROM NURSING HOME BOARD FOR AWARDING CONTRACT FOR RE -ROOFING WORK (DEFERRED AUGUST 7, 1979) Upon review of the bids by the Nursing Home Board, it was the Board's recom- mendation to award the contract for re -roofing work at Burns Manor to Marty's Roofing and Sheetmetal of Hutchinson in the amount of $59,928.00. Following discussion, it was moved by Alderman Peterson, seconded by Alderman Huntwork and unanimously carried, to award the contract to Marty's Roofing and Sheetmetal for said work. (b) CONSIDERATION OF PAYMENT OF ADDITIONAL AUDIT FEES FOR YEAR -ENDING 1978 WITH RECOMMENDATION OF CITY ATTORNEY (DEFERRED JUNE 26, 1979) After reviewing the June, 1978 letter of contract between the City and Thor- sen, Campbell, Rolando & Lehne, it was the City Attorney's recommendation for the City to pay the additional $1,861 (half of the cost) to the auditing firm. Alderman Peterson moved that with the recommendation of the City Attorney to approve the additional payment of $1,861 to said auditing firm. Seconded by Alderman Gruenhagen, the motion unanimously carried. -15- Council Minutes August 14, 1979 9. NEW BUSINESS (a) CONSIDERATION OF AMENDING CITY ORDINANCE, SECTION 235:15 ENTITLED "POWERS AND DUTIES" FOR HOSPITAL BOARD Alderman Gruenhagen reported the Hospital Board requested an increase in the limitation for spending for any single capital item of purchase from $2,500 to $10,000 without prior City Council approval. This would require an amend- ment to the Ordinance established in 1967. Mayor Black commented that the other City entities should perhaps be given the same consideration and suggested deferred action for further study into the matter. It was moved by Alderman Gruenhagen, seconded by Alderman Peterson and carried unanimously, to defer action. (b) CONSIDERATION OF LEASE AGREEMENT WITH CARLSON PHARMACY IN HUTCHINSON MEDICAL OFFICE BUILDING It was reported by Alderman Gruenhagen that the Medical Office Building has space available for a pharmacy. Pharmacist Charles Carlson would like to rent approximately 700 square feet of space in said building for a minimum period of three years at a basic rent of $7,000 per year, plus utilities, housekeep- ing, and "others" as stated in the lease, effective October 1, 1979. A copy of the lease agreement had been reviewed by the City Attorney, and it was the recommendation of the Hospital Board to approve execution of the contract. Following discussion, Alderman Huntwork moved to authorize signing the lease agreement with Pharmacist Charles Carlson and entering into contract. The motion was seconded by Alderman Peterson and unanimously carried. (c) CONSIDERATION OF REQUEST BY WM-JAMES AUTO, INC. FOR SPECIAL PERMIT TO DISPLAY NEW AND USED CARDS ON BOULEVARD Mayor Black gave a brief background stating that on November 25, 1968 a special permit was granted to Carl Moehring,allowing Moehring Motors to make use of the boulevard and display new and used cars on the boulevard fronting Washing- ton Avenue at the junction of Washington and Adams Street. The permit was to be issued for a one-year period, or at the discretion of the City Council, with a restriction that the north four feet of said boulevard be reserved for a public sidewalk. However, the special permit was never renewed. After discussion, it was the consensus of the Council that a special permit for use of the City boulevard should be granted on an annual basis for a fee of $5.00. -16- Council Minutes August 14, 1979 The motion was made by Alderman Huntwork to approve a special permit for Wm. - James Auto, Inc. on an annual basis for a fee of $5.00. Seconded by Alderman Gruenhagen, the motion unanimously carried. (d) CONSIDERATION OF "GREEN THUMB" EMPLOYMENT PROGRAM Personnel Coordinator Sitz informed the Council the Green Thumb,Inc. is a federally funded project for public service employment and training to employ older low-income rural men and women. There will be five or more funded posi- tions in McLeod County about August 20, 1979. Following discussion, the motion was made by Alderman Gruenhagen, seconded by Alderman Huntwork and unanimously carried, to approve the application for "Green Thumb" employees for the City of Hutchinson. (e) CONSIDERATION OF ACCELERATED PAY STEP FOR PATROLMAN LARRY ALDAPE It was recommended by Chief of Police O'Borsky that the new Police Patrol Of- ficer, Larry Aldape, be started at an accelerated pay step in view of his pre- vious experience and background. After discussion, the general consensus of the Council members was to grant Patrol Officer Aldape credit for one year of experience. It was moved by Alderman Gruenhagen, seconded by Alderman Huntwork and carried unanimously, to approve the accelerated pay step for Patrolman Larry Aldape as recommended by Chief of Police O'Borsky. (f) CONSIDERATION OF REQUEST FOR EMPLOYEE MERIT INCREASE IN POLICE DEPARTMENT Mayor Black commented he had reviewed the merit increases with Chief of Police O'Borsky, and the recommended employees had not received a merit increase in some time. Following discussion, the motion was made by Alderman Huntwork to approve the employee merit increases in the Police Department as recommended. The motion was seconded by Alderman Gruenhagen and carried unanimously. (g) CONSIDERATION OF UPDATING THE UNIFORM BUILDING CODE This item was deleted from the agenda. (h) CONSIDERATION OF ADJUSTED 1980 ASSESSMENT AGREEMENT WITH MCLEOD COUNTY ASSESSOR Due to the additional cost in labor, etc., the County Assessor has requested -17- Council Minutes August 14, 1979 an adjustment in the service charge for the 1980 Assessment Agreement for the City of Hutchinson. The 1980 assessment fee will be $14,229. After discussion, it was moved by Alderman Huntwork, seconded by Alderman Gruenhagen and unanimously carried, to approve the adjustment and authorize signing the agreement. (i) CONSIDERATION OF APPLICATION FOR RETAIL "ON SALE" NON -INTOXICATING MALT LIQUOR LICENSE FOR "SENIORS ACTIVITY CENTER" ADVISORY BOARD Inasmuch as the "Seniors Activity Center" Advisory Board wished to serve re- freshments at the State Softball Tournament to raise funds for future activi- ties of their organization, they requested the required fee be waived. Following discussion, the motion was made by Alderman Peterson to approve issuing the malt liquor license and waive the required fee. Seconded by Ald- erman Gruenhagen, the motion unanimously carried. (j) CONSIDERATION OF ADJUSTED COST FOR SAFETY GLASSES Administrative Assistant Plotz reported on a survey taken of several businesses and their policy of reimbursement for safety glasses used by employees. It was noted that Hutchinson Utilities paid up to $80 on each pair. The Safety Com- mittee therefore requested a City policy equal to that of Hutchinson Utilities. It was also suggested that the City reimburse part-time employees up to $40 for safety glasses, and full reimbursement if they are employed longer than six months. After discussion, Alderman Huntwork moved to approve the adjustment cost for safety glasses for City employees. The motion was seconded by Alderman Gruen- hagen and carried unanimously. (k) CONSIDERATION OF LEASE AGREEMENT WITH INDEPENDENT SCHOOL DISTRICT NO. 423 FOR CIVIC ARENA Administrative Assistant Plotz reported the School Board had met and approved the lease agreement between the City and Independent School District No. 423 for use of the Civic Arena for a three-year period. Following discussion, it was moved by Alderman Gruenhagen to authorize sign- ing the lease agreement for the Civic Arena. The motion was seconded by Alder- man Peterson and unanimously carried. (1) CONSIDERATION OF SETTING HEARING FOR FEDERAL REVENUE SHARING After discussion, the motion was made by Alderman Peterson, seconded by Alder- man Huntwork and carried unanimously, to set the public hearing on federal rev- enue sharing for August 28, 1979 at 8:00 P.M. Council Minutes August 14, 1979 (m) CONSIDERATION OF ESTABLISHING PUBLIC HEARING DATE ADMINISTRATIVELY FOR PLANNING COMMISSION ITEMS Alderman Huntwork reported a survey was made of other cities and counties to determine their procedure for setting public hearing date(s) for the Planning Commission. The majority set the hearing administratively by staff. It was, therefore, the recommendation of the Planning Commission to delegate the power under Section 6.08 to staff on an experimental basis until January 1, 1980. Mayor Black responded that this change in procedure would require an amend- ment to the ordinance and suggested that the Planning Commission Chairman, the Administrative Assistant and Alderman Huntwork draft a copy of the first reading of the amended ordinance for the next Council meeting. It was moved by Alderman Huntwork to defer action. The motion was seconded by Alderman Peterson and unanimously carried. (n) CONSIDERATION OF APPLICATION FOR RETAIL "ON SALE" NON -INTOXICATING MALT LIQUOR LICENSE FOR HUTCHINSON ELKS INC. Following discussion, the motion was made by Alderman Gruenhagen, seconded by Alderman Huntwork and unanimously carried, to approve the application and is- sue an "On Sale" Non -Intoxicating Malt Liquor License. (o) CONSIDERATION OF DELINQUENT WATER AND SEWER ACCOUNTS Administrative Assistant Plotz explained that an assessment search was done on the property at 504 Hassan Street South. At the bottom of the search it stated there might be some current bills outstanding. The property was sold at the same time a meter reading was done, and the original owner did not pay the bill. Mr. Plotz had consulted the City Attorney to determine who would be responsible for the bill, and he was informed the former owner would be responsible. Mayor Black commented this matter should be resolved between the parties in- volved as it is a civil debt. The payment of the water bill should be to the City by the current owner. Mrs. Patrick Kalenberg, new owner of the property at 504 Hassan Street South, stated the purchase agreement held the original owner responsible to pay assess- ments and pending assessments. She questioned why the water bill was not list- ed on the search and why the water was not turned off when no one lived in the house. She further inquired if the City could seek payment from the former owner. Mayor Black explained the procedure for assessing against property and stated if a bill is not paid, it would be certified against the property taxes for the next year. The title owner of the property must pay the bill with civil -19- Council Minutes August 14, 1979 action against the former owner. After discussion, Alderman Peterson moved to discontinue service after Sep- tember 1, 1979 if the bill had not been paid. The motion was seconded by Alderman Gruenhagen and carried unanimously. (p) CONSIDERATION OF APPLICATION FOR RETAIL "ON SALE" NON -INTOXICATING MALT LIQUOR LICENSE FOR ST. ANASTASIA CATHOLIC CHURCH Following discussion, it was moved by Alderman Gruenhagen, seconded by Alder- man Huntwork and unanimously carried, to approve the application and issue a license to St. Anastasia Catholic Church. (q) CONSIDERATION OF ESTABLISHING AUGUST 28, 1979 FOR PUBLIC HEARING DATE ON TAX INCREMENT FINANCE PLAN (DEVELOPMENT DISTRICTS 1, 2 AND 3) WITH RECOMMEN- DATION OF DOWNTOWN DEVELOPMENT DISTRICT ADVISORY BOARD The Downtown Development District Advisory Board established development dis- trict No. 3 to compliment the objectives of the existing and approved districts 1 and 2 and a Tax Increment Finance Plan. It is their recommendation to ap- prove the report and set a public hearing. Following discussion, Alderman Huntwork moved to accept the report of the Tax Increment Finance Plan and set the public hearing for August 28, 1979 at 8:30 PM. The motion was seconded by Alderman Gruenhagen and unanimously carried. It was moved by Alderman Huntwork, seconded by Alderman Gruenhagen and unani- mously carried, to waive reading and adopt Resolution No. 6395 entitled Resolu- tion Calling for Hearing to Establish Boundaries of Development District No. 1, 2, and 3. It was moved by Alderman Huntwork, seconded by Alderman Gruenhagen and unani- mously carried, to waive reading and adopt Resolution No. 6396 entitled Resolu- tion Calling for Distribution of Downtown Development District Advisory Board Report and Tax Increment Finance Plan. - CONSIDERATION OF MERIT INCREASES FOR SERGEANTS AND INVESTIGATOR IN POLICE DEPARTMENT Following discussion, the motion was made by Alderman Huntwork to approve the merit increases for Sergeants and Investigator in the Police Department as recommended. The motion was seconded by Alderman Gruenhagen and carried unani- mously. 10. MISCELLANEOUS (a) COMMUNICATIONS FROM CLERK -ADMINISTRATIVE ASSISTANT -20- Council Minutes August 14, 1979 Administrative Assistant Plotz reported meetings have been held on the proposed 1980 budget, and the Park and Recreation Board will meet Thursday, August 16, at 7:00 P.M. to discuss their budget. It was reported that most of the appraisal work for the police and fire sta- tion site was done last Thursday, and the completion date is set for Septem- ber 15, 1979. Mr. Plotz reported he attended a HUD Community Development Grant Application Seminar last week and will be reporting on it in more detail at a later date. This coming Thursday Mr. Plotz planned to attend an energy meeting in the Twin Cities. The first closing for the LAWCON Park Acquisition Program will be on Wednesday with Mr. Sam Flom. 11. CLAIMS. APPROPRIATIONS AND CONTRACT PAYMENTS (a) VERIFIED CLAIMS It was moved by Alderman Peterson, seconded by Alderman Gruenhagen and unani- mously carried, to approve the verified claims and authorize payment from the appropriate funds. (b) CONSIDERATION OF CLAIM SUBMITTED BY AILIE CONSTRUCTION CO. It was the recommendation of the City Engineer/Public Works Director to deny the claim submitted by Ailie Construction inasmuch as his claim should be against the property owner, Steve Maki,who took out the building permit. The City Attorney concurred that the claim would be against the owner. After discussion, it was moved by Alderman Peterson, seconded by Alderman Gruenhagen and unanimously carried, to reject the claim. 12. ADJOURNMENT There being no further business to come before the Council, the meeting was ad- journed at 11:09 P.M., upon motion by Alderman Peterson, seconded by Alder min Gruenhagen and unanimously carried. -21-