08-25-1980 CCMI
MINUTES
SPECIAL MEETING - HUTCHINSON CITY COUNCIL
MONDAY, AUGUST 25, 1980
A workshop meeting of the City Council was called to order by Mayor Westlund at 4:35 PM,
with the following present: Aldermen Gruenhagen and Beatty, in addition to Mayor West-
lund. Absent: Aldermen Peterson and Lueneburg. Also present: City Administrator Plotz,
City Engineer Priebe, City Accountant Merrill, HRA Executive Director Lerberg, and Con-
sultant Clarence Simonowicz.
City Administrator Plotz explained the purpose of the informal meeting was to update the
Council on the status of the high rise project. He then presented a drawing of the high
rise site plan and stated the Senior Citizens Center would be located on the first floor
of the building. This area would be used by senior citizen groups only.
The sale of the property to the developer would be $1,000.00 per unit, or $62,000.00
revenue toward the project. The City needs to find some other means to finance the
Center; therefore, tax increment financing is being considered. Also, the City will be
responsible for the parking lot of the Center. Real estate tax will be paid on the
building, with the exception of the parking lot and Center.
The location of the high rise building on the site could be altered, but the basic build-
ing plan cannot be changed due to the tight schedule before construction begins.
It was reported the north 132 feet of the alley easement will be necessary for the high
rise; therefore, the City will vacate this portion of the alley for the project, with
the first reading of the ordinance at the Council meeting on August 26, 1980. After the
public hearing notices were mailed for vacation of the alley, Mr. Plotz was approached
by Anthony Forcier regarding the City purchasing his house located on the site. Subse-
quently, Michael Guetter also contacted Mr. Plotz about selling his house on the north
property line to the City. Following consultation with the Mayor, the owners were of-
fered an option of $50,000.00 per parcel, including the potential relocation payment of
$15,000.00.
Discussion was given to the location of the high rise building on the site and the in-
crease in project cost if the two proposed properties were purchased by the City.
City Accountant Merrill presented a report on the estimate of the assessed values for
the increment districts 1, 2 and 3, and projected the total cost would be $75-76,000.00,
with the high rise paying approximately $30,000.00.
Mr. Plotz pointed out that if the two houses in the high rise site were purchased, it
would be necessary to change the boundary on District No. 2. Also, to further compli-
cate matters, the Knutson Company had approached him regarding a $3 million project
under consideration in Hutchinson for 60 -units of high quality condominiums. The down-
town is one of three locations being considered (block west of City Hall). This would
also require a change in the boundary of District No. 1 to the west. Changing the boun-
daries would require public hearings.
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COUNCIL MINUTES
AUGUST 25, 1980
Alderman Gruenhagen expressed concern about changing the tax increment district boun-
daries. He felt the tax payers would be disturbed and wonder how far out the City would
extend the districts.
Consultant Simonowicz stated that if the Knutson Company's property would be included
in the district, there would have to be an agreement between them and the assessor. This
would take time and would delay the issuance of the bond. He further pointed out that
there was a limitation on the amount of property in a district at the time it was drawn
up. Since then, this requirement has been abolished.
Mr. D. A. Weseloh recently sold the City property for the park project. He has now of-
fered to sell the City the property where Sunny's Antiques is located in the amount of
$24,000.00 for 44 feet of frontage on Main Street, and through the alley back to the
river.
The Historical Society has expressed an interest in relocating within Hutchinson, and
the Chamber of Commerce has offered to share a joint proposal with them. Alderman Beatty
reported on the status of this venture. The present Chamber building was sold on con-
tract for deed so property could not be donated to the Historical Society. However,
the building could be sold to either the City or Society for a joint venture, with the
Chamber as developer, or else the City could become the developer of the project. There
are three possible directions to go, but they are all in the "ideas" stage.at present.
Consultant Simonowicz commented the Historical Society is packing the items in the Mu-
seum in order to be out of the building by the designated date. They are in need of a
heated storage space. He then suggested the basement of the Old Armory, with the City
leasing it to the Society for a nominal fee. City Administrator Plotz was to check in-
to the storage space in the Old Armory for a temporary period of time.
Mayor Westlund instructed the Chamber of Commerce and Historical Society to prepare a
proposal, and the City would purchase the property. Then the County Commissioners
would be approached for the purchase of one-half the land.
Mr. Plotz reported the Farmers Elevator is contemplating building a railroad spur this
fall in the amount of $100,000.00. Mr. Zimmerman would like to know the City's intent
regarding the railroad situation in conjunction with the motel project so they can act
accordingly. The railroad has offered Farmers Elevator 54 cars for a reduction to their
costs, with only one track required. The City's proposal would require two tracks and
a car mover. The adjoining property owner is outside the City limits so a track could
not be laid there.
By October 15, 1980 the developers will need the money from the City for the construc-
tion of the Community Activity Center in the high rise. Mr. Plotz stated he would like
to have Bill Fahey, Ehlers & Associates, prepare a study of the amount of money needed
so one bond could be issued to cover all items.
There being no further business, the meeting adjourned at 5:45 P.M.
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