04-21-1982 CCMMINUTES
SPECIAL MEETING - HUTCHINSON CITY COUNCIL
WEDNESDAY, APRIL 21, 1982
The special meeting was called to order by Mayor DeMeyer at 3:15 P.M., with the
following present: Alderman Mike Carls, Alderman John Mlinar, Alderman Kenneth
Gruenhagen, in addition to Mayor James G. DeMeyer. Absent: Alderman Ted Beatty.
Also present: City Administrator Gary D. Plotz, City Engineer Marlow Priebe, City
Accountant Kenneth B. Merrill, City Attorney James Schaefer, and Bond Consultant
Bill Fahey.
Mr. Bill Fahey of Ehlers & Associates made a presentation on amendments to the tax
increment financing plan. He began his talk with the S&L project and called atten-
tion to the amendment of the tax increment financing plan, District No. 4. Mr.
Fahey then made reference to Page 34 from the Tax Increment Plan Book.
It was pointed out that the proposed amendment does not change the area of the De-
velopment District, the tax increment financing district, or the total amount of
debt to be incurred. The proposed amendment has been submitted to Mr. Jerry Gil-
ligan of the Dorsey law firm for review. The amendment would need to proceed
through the normal channels of a public hearing and notifying the County and School
Board.
Extensive discussion centered on repayment of the bond issue for the Evergreen Apart-
ments and whether all the tax increment funds are committed to that project.
City Attorney Schaefer was asked what options the Council had to clarify the legal
questions being raised. He responded they had five choices, namely: 1) formalize
questions in writing and submit them to the Dorsey law firm for a written response;
2) present documents and questions to another law firm; 3) request a procedural audit
from the State Auditor's Office; 4) proceed along as it is; and 5) stop and do noth-
ing, with no more new proposed projects.
Alderman Gruenhagen made the motion to authorize the City Administrator to arrange
a meeting with the Dorsey law firm and an unbiased party, with the amount not to ex-
ceed $1,000.00 in cost. The motion was seconded by the Chair.
Alderman Gruenhagen then amended his motion to use the Dorsey law firm and the
State Auditor's Attorney, with City Council members at their discretion to submit
in writing by April 26, 1982 any specific questions they might have. The Chair sec-
onded the motion and it carried, with Alderman Mlinar and Gruenhagen and Mayor De -
Meyer voting aye, and Alderman Carls voting nay.
Alderman Mlinar stated the two law firms needed to be knowledgeable of the issues
to answer the questions. He, therefore, authorized the City Administrator to send
a copy of Tax Increment Documentation and Parking and Senior Citizens Projects Doc-
umentation to the attorneys.
There being no further business, the meeting adjourned at 5:55 P.M. upon motion by
Alderman Mlinar, seconded by Alderman Carls and unanimously carried.
E- I