07-15-1982 CCMMINUTES
SPECIAL MEETING - HUTCHINSON CITY COUNCIL
THURSDAY, JULY 15, 1982
Vice -Mayor Gruenhagen called the special meeting to order at 7:00 A.M., with the
following present: Alderman Mike Carls, Alderman John Mlinar, Alderman Ted Beatty,
and Vice -Mayor Gruenhagen. Absent: Mayor James G. DeMeyer. Also present: City
Administrator Gary D. Plotz, and Developer Jim McClure, and City Atty. Jim Schaefer.
The Vice -Mayor stated the purpose of the meeting was to review the proposed agree-
ment between the City of Hutchinson and Hutchinson S&L Rehab, Limited Partnership.
Vice -Mayor Gruenhagen had stated that he felt there should be an additional guar-
antee to the City in the event the proposed building was not constructed pursuant
to the contract.
It was pointed out that the City would be receiving $70,000.00 from the Hutchinson
S&L Rehab, Limited Partnership at the time of the closing. It was furthermore
suggested that an additional $90,000.00 guarantee to the City may be advantageous;
as an option agreement with Park Square Company, General Partnership of Ronald J.
McGraw and Edward McCormick, is for a total of $160,000.00.
A motion was made by Alderman Mlinar, seconded by Alderman Beatty, to give approval
of the Sale and Development Agreement relating to Development District No. 4, City
of Hutchinson, McLeod County, Minnesota by and between City of Hutchinson, Minnesota
and Hutchinson S&L Rehab, Limited Partnership, A Minnesota Limited Partnership, con-
tingent upon City Attorney Schaefer contacting the Dorsey law firm to determine the
validity of the City of Hutchinson obtaining additional security for the difference
($90,000.00) between the purchase price of the property and the sale to Hutchinson
S&L Rehab, Limited Partnership. After discussion, the motion unanimously approved.
Motion was made by Alderman Beatty and seconded by Alderman Carts that final ap-
proval of Sale and Development Agreement not be made until receipt of a final ans-
wer from the Dorsey law firm on the additional security for the difference between
the purchase price of the property and the sale to Hutchinson S&L Rehab, Limited
Partnership. After discussion, motion unanimously approved.
Motion was made by Alderman Beatty, seconded by Alderman Mlinar, to enter into nego-
tiations to extend the option contract between the City of Hutchinson and Park Square
Company for 90 days from the date of expiration of the existing agreement. Motion
unanimously approved.
City Administrator Plotz requested that the minutes relfect the acknowledgement of
receipt of the Limited Partnership Agreement and Certificate of Limited Partnership
of Hutchinson S&L Rehab, Limited Partnership that was delivered at the start of the
regular City Council meeting on Tuesday, July 13, 1982. He stated that copies would
be made upon request to the Mayor and City Council and the document is available for
public inspection.
Motion was made by Alderman Beatty, seconded by Alderman Mlinar and unanimously car-
ried to adjourn at 8:45 A.M.
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