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08-04-1982 CCMMINUTES SPECIAL MEETING - HUTCHINSON CITY COUNCIL WEDNESDAY, AUGUST 4, 1982 1. CALL TO ORDER The special meeting was called to order by Mayor DeMeyer at 7:00 A.M., with the fol- lowing present: Alderman John Mlinar, Alderman Kenneth Gruenhagen, and Alderman Ted Beatty, in addition to Mayor James G. DeMeyer. Absent: Alderman Mike Carls. Also present: City Administrator Gary D. Plotz, City Engineer Marlow V. Priebe, and City Attorney James Schaefer. 2. OLD BUSINESS (DEFERRED FROM AUGUST 2, 1982) a) CONSIDERATION OF SALE AND DEVELOPMENT AGREEMENT BETWEEN CITY OF HUTCHINSON AND HUTCHINSON S&L REHAB, LIMITED PARTNERSHIP Mrs. Sandy Lennes, President of the Hutchinson Downtown Retail Association, presented a Resolution in support of the S&L project. The motion was made by Alderman Beatty to waive reading of the document in its entirety and to instruct the City Attorney to review the corrections made in the agreement. Seconded by Alderman Mlinar, the motion unanimously carried. City Attorney Schaefer commented on the four major areas of change in the document. Developer Jim McClure requested that the dates within the agreement coincide, and on or before December 31, 1982 would be used in most instances, with the exception of on or before December 31, 1983 as a completion date, instead of June 31, 1983 as stated in the agreement. After discussion, Alderman Beatty moved to approve and enter into the Sale and Development Agreement between the City of Hutchinson and Hutchinson S&L Rehab, Limited Partnership. The motion was seconded by Alderman Mlinar and carried, with the following roll call vote: Alderman Gruenhagen voted aye, based on the satisfaction that the Council had researched the question thoroughly and had sought legal opinions; Aldermen Beatty and Mlinar also voted aye; and Mayor DeMeyer voted nay. b) CONSIDERATION OF PROPERTY OPTION WITH PARK SQUARE CO. City Administrator Plotz recommended the closing on the property coincide with the closing on the project. Therefore, it may be necessary'to extend the option contract with Park Square Co. COUNCIL MINUTES AUGUST 4, 1982 Following discussion, Alderman Gruenhagen moved to authorize City staff to extend the property option with Park Square Co. beyond the 90 days (Novem= ber 20, 1982), if necessary. Seconded by Alderman Beatty, the motion unani- mously carried. Alderman Beatty moved to exercise the option on the purchase of the property from the Park Square Co. on the date of closing for the S&L project. The motion was seconded by Alderman Mlinar and carried. Aldermen Gruenhagen, Beatty and Mlinar voted aye, and Mayor DeMeyer voted nay, stating his vote was based on the complexities of the issue and not the option itself. c) RESOLUTION NO. 7237 - RESOLUTION RELATING TO $135,000 GENERAL OBLIGATION TAX INCREMENT BONDS OF 1982; FIXING THE FORM AND DETAILS, PROVIDING FOR THE EXECUTION AND DELIVERY THEREOF AND THE SECURITY THEREFOR The Mayor commented that the successful bidder, M.H. Novick Co., had called him, and they were seeking investors for the tax increment bonds. City Attorney Schaefer reported the first three pages had already been acted upon, and Resolution No. 7236 was adopted at the August 2, 1982 special Coun- cil meeting. He then reviewed the second portion containing Resolution No. 7237, which dealt with the execution and delivery of the bonds. After discussion, Alderman Beatty moved to waive reading and adopt Resolu- tion No. 7237 entitled Resolution Relating to $135,000 General Obligation Tax Increment Bonds of 1982; Fixing the Form and Details, Providing for the Execution and Delivery Thereof and the Security Therefor. Seconded by Alder- man Mlinar, the motion carried, with Aldermen Gruenhagen, Beatty and Mlinar voting aye and Mayor DeMeyer voting nay. City Attorney Schaefer pointed out the Developer's Agreement is a contract with the City, as well as the option contract. These contracts direct the Mayor to sign the documents. It would be appropriate to proceed in due haste to sign the documents, and he suggested a three day time period. He then requested authority to take proper legal action to have the documents signed in the event the Mayor declined to sign. Alderman Mlinar moved that if the Mayor does not sign within a three day time period, two City Council members can do so. Seconded by Alderman Beatty. The City Attorney stated only the Mayor and City Clerk can sign contracts and bonds. Alderman Beatty amended the motion to authorize the City Attorney to take proper procedures necessary if the Mayor declines to sign the contracts and bonds relating to the S&L project, and to instruct the Mayor to sign all documents relating to the S&L Rehab, Limited Partnership, pursuant to City Charter, Section 6.04, Contracts. Seconded by Alderman Mlinar, the motion -2- COUNCIL MINUTES AUGUST 4, 1982 carried, with Aldermen Gruenhagen, Beatty and Mlinar voting aye and the Mayor abstaining from voting. d) CONSIDERATION OF NEGOTIATION APPROACH OF OBTAINING PRICES WITHIN THE OPTIONS FOR THE PARKING PROGRAM (REQUESTED BY ALDERMEN JOHN MLINAR AND TED BEATTY) Alderman Beatty made reference to the recent Parking Committee meeting and the appointment of Alderman Gruenhagen and Mayor DeMeyer to a negotiating committee. It was his understanding that they would negotiate prices on properties that were priorities of the Parking Committee. He pointed out there wasn't time for options to be submitted and brought back to the City Council for approval. Alderman Gruenhagen stated he felt the options should be brought back to the Council for a decision, and the Mayor concurred. Alderman Mlinar commented the intent was that the committee had been given an amount for a counter-offer, with a bottom line established at a Council meeting. No action was taken. e) CONSIDERATION OF ESTABLISHING AUGUST 15, 1982 AS TIME LIMIT TO OBTAIN NECESSARY PARKING OPTIONS (REQUESTED BY ALDERMEN JOHN MLINAR AND TED BEATTY) No formal action was taken on this matter. Mayor DeMeyer and Alderman Gruen- hagen indicated the time -frame of August 15, 1982 would be sufficient. f) CONSIDERATION OF OBTAINING A LEGAL OPINION ON HOW TO PRE -PAY THE OUTSTANDING 1968/1970 PARKING BONDS FROM THE 1981 PARKING FUND (REQUESTED BY ALDERMEN JOHN MLINAR AND TED BEATTY) Alderman Beatty commented on a motion made at the last City Council meet- ing. An inter -city transfer of funds was made to pay off the bonds. After discussion, it was moved by Alderman Beatty to request the City At- torney to obtain information and legal counsel regarding parking bonds from the Dorsey law firm. Seconded by Alderman Mlinar and unanimously approved. g) CONSIDERATION OF AUTHORIZING STAFF TO CONTACT THE COUNTY FOR TIME EXTENSION TO CERTIFY THE PARKING PROGRAM ASSESSMENTS (REQUESTED BY ALDERMEN JOHN MLINAR AND TED BEATTY) Alderman Beatty stated it might be necessary to contact the County for a time extension for certification of the parking program assessments. Alderman Gruenhagen moved to approve requesting a time extension from the -3- COUNCIL MINUTES AUGUST 4, 1982 county. Seconded by Alderman Beatty and carried unanimously. h) CONSIDERATION OF OBTAINING A LEGAL OPINION ON HOW TO USE THE 1981 PARKING FUND TO MAKE IMPROVEMENTS ON CITY RIGHT-OF-WAY (EXAMPLE: DICK SMITH PROPOSAL) (REQUESTED BY ALDERMEN JOHN MLINAR AND TED-BEATTY) Attorney Schaefer made reference to the City of Litchfield's use of tax increment financing. He suggested contacting the Dorsey lAw firm to de- termine if tax increment financing could be used for improvements of public buildings in Hutchinson, ie the Public Library. Alderman Beatty commented on the proposal submitted by Richard Smith and inquired if the parking fund could be used for on -street parking projects. Following discussion, the motion was made by Alderman Beatty to instruct the City Attorney to determine how to use the 1981 parking dunds for im- provements on City right-of-way. Seconded by Alderman Mlinar, the motion unanimously carried. i) CONSIDERATION OF RECOMMENDATION OF OLD ARMORY COMMITTEE FOR THE CITY TO RETAIN AN ARCHITECT TO INVESTIGATE COST AND PROVIDE DATA ON ALTERNATE COSTS OF REMODELING OLD ARMORY FOR A VARIETY OF USES (REQUESTED BY ALDERMEN JOHN MLINAR AND TED BEATTY) A report was given on the Old Armory Research Committee meeting held July 29, 1982. The committee discussed the use of the building and determined it would be brought up to code according to the use when it was closed. In order to determine the cost of upgrading, it would be necessary to obtain an architectural firm. In addition, the committee felt it should be an out- of-town firm. At present the Old Armory building is classified A-1. It was pointed out that one area of controversy, besides the cost to upgrade, was which items of improvement must be done to bring the Armory up to code. City Administrator Plotz stated that two architectural firms had been con- sidered in December 1981, and one was a local_firm.__Alderman_Gruenhagen recommended the firm of Lund Associates, Inc. from Rapid City, South Dakota. Alderman Mlinar moved to engage the firm of Lund Associates, Inc. to in- vestigate the cost to upgrade the Old Armory. Seconded by Alderman Gruen- hagen, the motion unanimously carried. 3. NEW BUSINESS a) CONSIDERATION OF IMPROVEMENT PROJECTS 82-32 AND 82-33 - TOWN AND COUNTRY ESTATES -4- a,. COUNCIL MINUTES AUGUST 4, 1982 Mayor DeMeyer stated this item was not on the original Agenda, but it had been brought to his attention. Mr. Duane Dickey, Developer of Town and Country Estates, appeared before the Council and requested approval of the Atkinson Blacktop Service proposal for Projects 82-32 and 82-33 that had been deleted from the 1982 improve- ments list upon his request. Following discussion, it was moved by Alderman Beatty to approve the Atkin- son Blacktop Service contract and charge the usual and customary fee for plans and specifications for City streets, payable by the contractor and/or Duane Dickey. Seconded by Alderman Mlinar and carried unanimously. b) CONSIDERATION OF CITY CREW WORK AT FAIR GROUNDS City Administrator Plotz reported that Fred Roberts had contacted him re- garding the City crew doing street work at the Fair Grounds during the McLeod County Fair. They have done this work in the past. The City Attorney suggested that until such time as an agreement has been established between the City and Fair Board, the City continue to perform the same services it has in the past. Alderman Mlinar made the motion to continue with previous services until the joint agreement can be established between the City and the Fair Board. Seconded by Alderman Gruenhagen. After discussion, Alderman Mlinar amended his motion to include previous services be limited to the use of machines and operators. Seconded by Ald- erman Gruenhagen and unanimously approved. c) CONSIDERATION OF SIDEWALK PROJECT BY CITY ENGINEER City Engineer Priebe commented on the sidewalk project and inquired if the driveway panel should be included in the sidewalk project for the City -owned property on Franklin. The Council gave a negative response. It was then determined the City Engineer would have plans ready for the August 10, 1982 Council meeting. d) CONSIDERATION OF SUMMER BAND CONCERTS Mrs. Clarice Coston from the Chamber of Commerce commented on the summer band concerts held in Library Square. She stated the Chamber had over -spent the budget and requested the Council to consider an additional $200.00 to help defray the expense of the concerts. Sig v COUNCIL MINUTES AUGUST 4, 1982 After discussion, Alderman Gruenhagen moved that the City donate $200.00 to the Chamber of Commerce to help with the expense of the band concerts. Seconded by Alderman Mlinar, the motion unanimously carried. e) COMMUNICATION FROM ALDERMAN MLINiAR Alderman Mlinar raised a question on the S&L project failing and the "cause and effect" of such action. He suggested a study be done on the number of proposed projects that have failed and the effect it had on the community. 4. ADJOURNMENT The motion to adjourn was made by Alderman Gruenhagen at 9:35 A.M., seconded by Alderman Mlinar and unanimously approved. M