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11-03-1982 CCMMINUTES SPECIAL MEETING - HUTCHINSON CITY COUNCIL WEDNESDAY, NOVEMBER 3, 1982 1. CALL TO ORDER The special meeting was called to order by Mayor DeMeyer at 4:00 P.M., with the following present: Alderman Mike Carls, Alderman John Mlinar, Alderman Kenneth Gruenhagen, Alderman Ted Beatty, and Mayor James G. DeMeyer. Also present: City Administrator Gary D. Plotz, City Attorney James Schaefer, and City Accountant Kenneth B. Merrill. 2. CONSIDERATION OF ELECTION CANVASS ON NOVEMBER 2. 1982 Mr. Kenneth B. Merrill, Election Clerk, presented to the Council the sealed envelopes containing the count of ballots by precinct. The Council members then proceeded to canvass the election returns of November 2, 1982, for the City's Special Election portion of the ballot. The motion was made by Alderman Gruenhagen to accept the election results as presented. Motion seconded by Alderman Beatty. Motion carried unanimously. It was moved by Alderman Gruenhagen, seconded by Alderman Beatty, to waive reading and adopt Resolution No. 7287 entitled Resolution Canvassing Election Returns of City Special Election Held November 2, 1982. Motion unanimously approved. 4:15 P.M. SPECIAL MEETING 1. CONSIDERATION OF PARKING PROGRAM Alderman Beatty stated he had made the following changes to his proposal that was presented on October 29, 1982: a) Proposed to grandfather in as having met the parking ordinance or park- ing requirements all those businesses that were outside the parking dis- trict established in 1976. b) Proposed those within the boundaries of the old parking district who have met the present or prior parking ordinances or have been granted variances not be assessed, unless at some future time they expand or change the use of the business. c) Proposed to reduce the total parking program by a total of approximately $300,000.00. This would cut the assessment portion from $750,000.00 to $570,000.00 and the City's portion from $500,000.00 to $380,000.00. C�l COUNCIL MINUTES NOVEMBER 3, 1982 Alderman Beatty pointed out that almost everyone left in the old parking dis- trict would receive a 25 percent reduction in their assessments. It was fur- ther suggested that individual meetings be held with property owners who had questions or objections on their assessments. It was stressed that the three main sites for parking lots were the Bretzke property to the north, Masonic Temple, and the Plowman building (parcels A and B). Alderman Beatty further stated it was arbitrary to reduce by 50 percent the assessments for State Twin Theater and J's Pizza Garten inasmuch as their major business occurs after retail hours. It would be reviewed. Alderman Carls concurred with Alderman Beatty's proposal, but he felt the pro- gram could be cut in half. City Accountant Merrill reported he could compile some figures by the end of next week, and the staff would work on it. Mayor DeMeyer asked about including the demolition costs in the improvement. He felt that those who got the most benefit should also bear the cost. Again, the Mayor stressed angle parking and the use of back entrances of downtown buildings. Chairman Skip Quade, Downtown Parking Committee, commented that he understood the Mayor's reasoning for on -street parking and thought it was a good concept. However, the spaces would have to be in an area that would benefit the downtown businesses. He didn't think the property owners would fix up the back for en- trances to the buildings. 2. PRESENTATION OF DOWNTOWN PROPOSAL BY RICHARD SMITH (REQUESTED BY ALDERMAN GRUENHAGEN) Mr. Richard Sm1th appeared before the Council regarding his development proposal along Main Street. Prior to the presentation, he introduced Mr. Gerald J. Mangle who is an independent planning consultant. Mr. Mangle proposed to offer the City of Hutchinson the services of his con- sulting firm. He then outlined the scope of services to be included and the fees charged. Mr. Mangle pointed out that he had worked with Clarence Simonowicz on some of the City's plans; and therefore, he could bring continuity. Mayor DeMeyer was concerned that Hutchinson had already spent considerable money on consultant services. After discussion, it was the consensus of the Council that Mr. Mangle's proposal for consulting services should be referred to the Downtown Development Advisory Board. Mr. Smith presented a slightly revised proposal for development of a new 20,700 square foot shopping facility with 3,600 square feet of walkway. The location would remain the same, just off Main Street on Second Avenue Southeast. The estimated value of new construction would be $872,600.00. -2- COUNCIL MINUTES NOVEMBER 3, 1982 Included in Mr. Smith's proposal was the use of tax increment financing in addi- tion to use of the City's off-street parking funds. Mr. Smith stated he was not looking for approval from the Council at this time, but rather authorization to work with City staff to possibly implement the project by 1983. Mayor DeMeyer commented that some guidelines needed to be established regarding tax increment. City Administrator Plotz then stated he would obtain samples of guidelines on tax increment financing from other cities. It was moved by Alderman Gruenhagen to direct the City staff to work with Mr. Richard Smith to develop a more complete proposal. Seconded by Alderman Beatty, the motion carried, with Aldermen Gruenhagen, Beatty, Carls and Mlinar voting aye and Mayor DeMeyer voting nay. 3. CONSIDERATION OF COST TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENT FOR PROJECT NO. 82-49 Following discussion, the motion was made by Alderman Beatty, seconded by Alder- man Mlinar, to waive reading and adopt Resolution No. 7289 entitled Resolution Declaring Cost to Be Assessed and Ordering Preparation of Proposed Assessment, Project 82-49. Motion carried, with Alderman Gruenhagen abstaining from voting. 4. CONSIDERATION OF SETTING HEARING ON PROPOSED ASSESSMENT FOR PROJECT 82-49 After discussion, Alderman Beatty moved to waive reading and adopt Resolution No. 7290 entitled Resolution for Hearing on Proposed Assessment, Project 82-49, and set the public hearing for December 14, 1982 at 8:00 P.M. Motion seconded by Alderman Mlinar and carried, with Alderman Gruenhagen abstaining from voting. 5. PRESENTATION BY HUTCH COMPUTER INDUSTRIES Mr. Chadd Piehl, Secretary of the Community Development Corporation, stated that one of the major objectives of this Corporation was to encourage, help and assist local businesses in expanding their business. The Board of Directors had re- viewed a proposal from Hutch Computer Industries for industrial revenue notes, and they were referring it to the City Council for consideration. Mr. Gerald Cornell, a partner for Hutch Computer Industries, then presented a proposal to construct a 5,000 square foot retail, office and warehouse building on Highway 7 West. He inquired if the project would fall within the guidelines for industrial revenue financing. It was their intention to begin the project in March 1983. Following discussion, Alderman Mlinar asked the City Attorney to research the project and review it further at the November 23, 1982 City Council meeting. The other Council members concurred with this action. 6. ADJOURNMENT The motion was made by Alderman Carls, seconded by Alderman Beatty, to adjourn the meeting at 5:50 P.M. Motion unanimously carried. -3-