01-08-1980 CCMw
MINUTES
REGULAR MEETING - HUTCHINSON CITY COUNCIL
TUESDAY, JANUARY 8, 1980
1. CALL TO ORDER
The meeting was called to order by Mayor Ralph Westlund at 7:30
p.m., with the following members present: Aldermen Gruenhagen, Lueneburg
and Beatty, in addition to Mayor Westlund. Absent: Alderman Peterson.
Also present were: Administrative Assistant Plotz, City Engineer/
Public Works Director,Priebe and City Attorney Schantzen.
2. INVOCATION
The invocation was given by the Reverend Keith Duehn.
3. MINUTES
The minutes of the Regular Meeting of December 26, 1979 and the Special
Meetings of December 28, 1979, and December 29, 1979, were approved
as presented upon motion by Alderman,Lueneburg, seconded by Alderman
Gruenhagen and unanimously carried.-
4. PUBLIC HEARING
None
5. COMMUNICATIONS, REQUESTS AND _PETITIONS
r'
(a) CONSIDERATION OF REQUF,6T FOR RICHARD WAAGE TO ATTEND FBI NATIONAL
ACADEMY, MARCH 30 - JbNE 13, 1980
Mayor Westlund stand that selection for attendance at this Aacademy
is an honor. This'is a budgeted item and Officer Waage's salary
will continue for the duration of the training. Request was approved
on a motion by Alderman Gruenhagen, seconded by Alderman Beatty and
unanimously carried.
(b) CONSIDERATION OF A REQUEST FOR CITY ATTORNEY SCHANTZEN TO ATTEND
1980 UPDATE FOR CITY ATTORNEYS ON JANUARY 18-19, 1980
After discussion, it was moved by Alderman Lueneburg to approve the
request. The motion was seconded by Alderman Gruenhagen and carried
unanimously.
6. RESOLUTIONS AND ORDINANCES
(a) ORDINANCE NO. 17/79 - AN ORDINANCE AMENDING ORDINANCE NO. 464 CONCERNING
ZONING REGULATIONS IN THE CITY OF HUTCHINSON AND THE OFFICIAL ZONING
MAP (COUNTRY CLUB TERRACE)
Council Minutes
January 8, 1980
Page 2
Following discussion, the motion was made by Alderman Gruenhagen,
seconded by Alderman Beatty and carried unanimously to waive second
reading and adopt Ordinance No. 590 entitled Ordinance Amending
Ordinance No. 464 Concerning Zoning Regulations in the -City of
Hutchinson and the Official Zoning Map.
(b) RESOLUTION NO. 6475 - ACCEPTING $55,000 FROM THE HUTCHINSON
UTILITIES COMMISSION
After discussion, Alderman Gruenhagen moved to waive reading
and adopt Resolution 6475 entitled Accepting $55,000 from the
Hutchinson Utilities Commission. Seconded by Alderman Beatty,
the motion unanimously carried.
7. REPORTS OF OFFICERS, BOARDS AND COMMISSIONS
(a) BUILDING OFFICIAL'S MONTHLY REPORT - DECEMBER 1979
There being no discussion, the report was ordered by the Mayor
to be received for filing.
8. UNFINISHED BUSINESS
(a) AWARDING OF BID FOR TREE PRUNING (DEFERRED DECEMBER 28, 1979)
City Forester Schnobrich reported that he had checked the history
of the low bidder, Bred -Well, Inc., Little Canada, MN. They have
done contract work for the City of St. Paul for four years and
have done soma work in Wisconsin. Favorable report on their
work was rec.6ived from both places. The bid of $2,979.97 would be
for pruning of 137 trees at approximately $27 per tree. After
completion of this work, the contract could be extended as needed
for additional work. Administrative Assistant Plotz pointed out that
this pruning would be covered under a 100% grant from DNR for
disease control.
Follqwing discussion, motion was made'to approve the low bid of
$2,979.97 of Bred -Well, Inc. by Alderman Gruenhagen. Motion was
seconded by Alderman Beatty and carried unanimously.
(b) AWARDING OF BID FOR HOUSE AND/OR GARAGE AT 125 JEFFERSON STREET SOUTH
The item was tabled by direction of Mayor Westlund.
(c) CONSIDERATION OF NEW SITE FOR POLICE/FIRE STATION
Mayor Westlund explained that several sites had been inspected earlier
in the day by the Mayor, Police Chief O'Borsky, Fire Chief Schlueter,
Council Minutes
January 8, 1980
Page 3
Administrative Assistant Plotz, Alderman Beatty and a representative
from the Planning Commission. On Thursday, January 17, an appraiser
will provide estimated figures on the value of three of these sites.
From this appraisal it is anticipated that one best site can be
referred to the Planning Commission and a more detailed appraisal
made. Architect's plans can be revised for the site selected.
Mayor Westlund stated that he recommended no affirmative action on
the west of City Hall location at this time. Alderman Beatty
commented that he agreed with that recommendation and further
recommended tabling site consideration for now, with the under-
standing that there would be special meetings as needed to arrive
at a recommendation which the Planning Commission may bring to
the City Council. Fire Chief Schlueter concurred with this
recommendation.
Site consideration was tabled on a motion by Alderman Beatty,
seconded by Alderman Lueneburg, carried unanimously.
9. NEW BUSINESS
(a) CONSIDERATION OF NEW POLICE VEHICLE
After discussion, the motion was made by Alderman Beatty, seconded
by Alderman Lueneburg, carried unanimously, that a 1980 Buick
LeSabre be purchased for $7,368 as the new police vehicle. The
1976 Chevrolet unmarked police vehicle will then be transferred to
the City Engineer's Office.
(b) CONSIDERATION OF HIRING TEMPORARY EMPLOYEES
On a motion by Alderman Gruenhagen, seconded by Alderman Beatty
and carried unanimously, temporary employees were approved.
Jack Busch will work during busy periods at the Liquor Store.
In the Recreation Department, Shirley Faerber and Loren Krienke
will work during the winter season, with wages to be reimbursed
under CETA.
(c) CONSIDERATION OF APPLICATION FOR CIGARETTE LICENSE FOR W. W.
BAUMANN, AMERICAN LEGION POST
The motion was made by Alderman Lueneburg to approve the application
and issue cigarette license. Seconded by Alderman Beatty, the
motion carried unanimously.
(d) CONSIDERATION OF STARTING RATE FOR POLICE OFFICER
After discussion, Alderman Gruenhagen moved to approve the
accelerated starting rate of Grade IV, Step 6 for Police Officer
David Erlandson due to his prior work experience. Motion was
seconded by Alderman Beatty and carried unanimously.
Council Minutes
January 8, 1980
Page 4
(e) RESOLUTION RESCINDING PRELIMINARY APPROVALS OF PROJECTS UNDER THE
MUNICIPAL INDUSTRIAL DEVELOPMENT ACT.
Ken Anderson, 701 Shady Ridge, appeared before the City Council
and presented a Resolution Rescinding Preliminary Approvals of
Projects under the Industrial Development Act for Council
consideration. Mr. Anderson stated that he believed Resolution
No. 6394 (8-14-79) and Resolution No. 6454 (12-29-79) were not in
the best interests of the City because they will adversely affect
the tax base of the City and will encourage the emergence of
blighted areas or hinder redevelopment of blighted areas. He
requested that the City Council adopt the resolution of rescission:
Richard Martin identified himself as an attorney representing
Briggs & Morgan, St. Paul, MN, a bonding firm retained by
Hutchinson Downtown, Inc. He stated that a City Council can
rescind preliminary approval of any action except if it is
arbitrarily done or if it causes a breach of an agreement elsewhere.
If approval of a project would cause blight or reduce the tax base
of the City, then rescission is permissible. He stated that the
Memorandum of Agreement between the City Council, Developers
Diversified and Hecht Associates is a contract. Backing out of
this contract could be called breach, but power has been reserved
by the City Council to'deny financing.
Jim DeMeyer stated that if the City Council denies the industrial
revenue bonding after preliminary approval, he judges this as
absolutely wrong and believes it may cause serious ramifications.
Fewer businesses of all kinds'will be needed if growth is restricted.
Alderman Gruenhagen stated: "I have been advised that it would be
dangerous for the City Council to rescind its decision. I want to
go on record as opposed to any rescinding of decisions relating to
Developers Diversified and Hecht Associates on the Hutchinson Mall."
Alderman Lueneburg asked Richard Martin if the case is strong to
support a decision to rescind the resolution of approval. Mr. Martin
replied that unless the parties to the Memorandum of Agreement
explicitly overruled the guidelines, they are not overruled and
arguments in favor of rescission are strong and appear valid.
Alderman Lueneburg then made a motion to adopt the resolution
entitled Resolution Rescinding Preliminary Approvals of Projects under
the Municipal Industrial Development Act.*`Motion was seconded by
Alderman Beatty. Motion was carried 3 to 1. Alderman Gruenhagen
voted nay.
Jim DeMeyer asked City Attorney Schantzen if there is a conflict
of interest on the City Council. Attorney Schantzen replied there
is no conflict of interest.
*Copy Attached Hereto
Council Minutes
January 8, 1980
Page 5
(f) PURCHASE OF STORAGE CABINETS FOR CITY DEPARTMENTS
Fire Marshall Field stated that storage cabinets are needed for flammable
liquids due to OSHA and fire safety requirements. He requested author-
ization to order four such cabinets at $433 each, or at a lower price
if available, for Police Department (1), Street Department (2) and
Water/Sewer Department (1). Alderman Beatty made a motion to approve
purchase of four (4) flammable storage cabinets at $433 each or less.
Motion was seconded by Alderman Gruenhagen, carried unanimously.
10. MISCELLANEOUS
(a) COMMUNICATIONS FROM CLERK/ADMINISTRATIVE ASSISTANT
Administrative Assistant Plotz advised 'that he would be attending
a meeting at the League of Cities on Friday, January 11.
(b) COMMUNICATIONS FROM CITY ENGINEER/DIRECTOR OF PUBLIC WORKS
Director of Public Works Priebe stated that the firms which will be
demolishing the old building at Maplewood Academy have received a
demolition permit for the normal 30 days. If bad weather prevents
completion within this time period, will it be necessary to request
an extension, or may the Building Official allow a longer time?
Mayor Westlund advised that if an extension of time is needed, it
must come before the Council in order to not establish a precedent
and cause future problems for the Building Official.
(c) COMMUNICATIONS FROM MAYOR WESTLUND
Mayor Westlund reported that there will be a meeting of the Coalition
of Outstate Cities on January 17, 1980. On January 25 and 26 there
will be a meeting for newly elected Council members. Attendance at
both meetings was encouraged by the Mayor.
11. CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS
(a) VERIFIED CLAIMS
It was moved by Alderman Lueneburg, seconded by Alderman Beatty
and unanimously carried, to approve the verified claims and
authorize payment from the appropriate funds.
12. ADJOURNMENT
There being no further business to come before the Council, a motion
was made and seconded to adjourn the meeting at 8:35 p.m.
RESOLUTION No. 6476
RESOLUTION RESCINDING PRELIMINARY APPROVALS OF
PROJECTS UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT
BE IT RESOLVED by the City Council of the City of
Hutchinson, Minnesota (the "City") as follows:
L Z -- l
Recitals
1.1 This Council, by Resolution No. 6394, adopted
on August 14, 1979, gave preliminary approval to a proposal
by Developers Diversified Limited, an Ohio limited partnership,
consisting of the acquisition of land and construction and
equipping of a retail shopping center facility -(the Diversified
Project) and the issuance of industrial development revenue bonds
in the estimated total amount of $3,&lDO,000 to undertake and
finance said Deversified Project.
1.2 This Council, by Resolution No. 6454, adopted
December 29, 1979, gave preliminary approval to a proposal by
Hecht Associates, Limited, an Illinois limited partnership,
consisting of the acquisition of land and the construction and
equipping of a building and related facilities to be leased to
K -Mart Corporation and operated as a department store (the
Hecht Project) and giving preliminary approval to the issuance
of industrial development revenue bonds in the estimated total
amount of $2,200,000 to undertake and Finance t;ze Hecht Project,
and amending Resolution No. 6394, adopted August 14, 1979 by
reducing the estimated total amount of industrial development
revenue bonds to be issued to finance the Diversified Project
from $8,600,000 to $6,400,000.
1.3 This Council, by Resolution Pio. 6342, adopted
Flay 22, 1979, adopted Gui3elines for Industrial Commercial
Development Revenue Financing, which Guidelines include the
following language:
The City reserves the right to deny any
application for municipal industrial develop-
ment bond or revenue note financing at any
state of the proceedings prior to the adoption
of the Resolution authorizing issuance of
industrial development bonds or revenue notes.
Section 2
Findings
2.1 This Council hereby finds that the preliminary
approvals given by Resolutions No. 6394 and 6454 are not in
v
the best interest of the City because t;ze construction of the
Diversified Project and the Hecht Project will adversely affect
the tax base of the City and of other taxing authorities, will
encourage the emergence of blighted areas, and will prevent or
hinder redevelopment of such blighter: areas.
2.2 This City Council further finds that the pre-
liminary approvals contained in Resolutions No. 6394 and 6454,
the construction of the Diversified Project and Hecht Project,
are and will be contrary to the planning and redevelopment
goals of the City which have been previously considered ani
approved by this City Council.
Section 3
? Denial of Approvals
3.1 This City Council does hereby rescind approval
of and deny approval to, the Diversified Project and the Hecht
Project -given preliminary approval in Resolutions :�o..6394
and 6454, and does hereby rescind approval of., and deny approval
of, the industrial development bond financing in connection
therewith.
3.2 This City Council hereby directs the :Mayor and
City Clerk to refuse to execute any documents in connection with
the Diversified Project and the Hecht Project, and the financing
in connection therewith, and the City Council further directs
the Mayor and City Clerk not to make any application to the
Commissioner of Securities of the State of Minnesota approval
for said projects or to withdraw any ap?lication already made, as
appropriate.
Adopted by the City Council this 8th day of January,
1990. o
Mayor
ATTEST:
City C erk