06-09-1981 CCMMINUTES
REGULAR MEETING - HUTCHINSON CITY COUNCIL
TUESDAY, JUNE 9, 1981
1. CALL TO ORDER
Mayor Westlund called the meeting to order at 7:30 P.M., with the following
members present: Aldermen Lueneburg and Gruenhagen, in addition to Mayor West-
lund. Absent: Aldermen Peterson and Beatty. Also present: City Administrator
Plotz, City Engineer Priebe, and City Attorney Schantzen.
2. INVOCATION
The invocation was given by the Reverend Darrel Thalman of Our Savior's Lutheran
Church.
3. MINUTES
The minutes of the Regular Meeting of May 26, 1981 and Special Meetings of May 27,
1981, May 29, 1981 and June 1, 1981 were approved as read upon motion by Alderman
Gruenhagen, seconded by Alderman Lueneburg and unanimously carried.
4. PUBLIC HEARING - 8:00 P.M.
(a) INDUSTRIAL DEVELOPMENT REVENUE BONDS FOR MCCORMICK PROPERTIES PROJECT/
PRAIRIE HOUSE, INC. LESSEE
Mayor Westlund called the public hearing to order at 8:00 P.M. and read the
Notice of Public Hearing, Publication No. 2436.
City Administrator Plotz reported the industrial revenue note would be used
to finance a Prairie House Restaurant in Hutchinson. The City's auditors re-
viewed the financial statements submitted to the City. After a Council work-
shop, it was decided that a 100% personal guarantee from the owners of the
building (Emmet and Edward McCormick) would be acceptable to the City.
Following discussion, it was moved by Alderman Lueneburg, seconded by Alder-
man Gruenhagen, to close the hearing. Motion carried unanimously.
Alderman Gruenhagen made the motion to waive reading and adopt Resolution
No. 6836 entitled Resolution Giving Preliminary Approval To A Project Under
the Municipal Industrial Development Act; Referring the Proposal To the Com-
missioner of Securities for Approval; And Authorizing Preparation of Neces-
sary Documents, which would issue industrial revenue bonds for McCormick
Properties to be used as the Prairie House Restaurant, contingent upon a
100% personal guarantee from the principal owners. Seconded by Alderman
Lueneburg, the motion unanimously carried.
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5. COMMUNICATIONS, REQUESTS AND PETITIONS
(a) DISCUSSION REGARDING PAST IMPROVEMENT PROJECTS BY PAT MIKULECKY
Inasmuch as Mr. Pat Mikulecky did not appear prior to adjournment, this
item was deferred to the next Council meeting.
(b) CONSIDERATION OF REQUEST BY HUTCHINSON JAYCEES FOR "ON SALE" NON -INTOXICATING
MALT LIQUOR LICENSE FOR JUNE 28, 1981
After discussion, the motion was made by Alderman Lueneburg, seconded by
Alderman Gruenhagen, to approve the request and issue an "On Sale" Non -Intox-
icating Malt Liquor License to the Hutchinson Jaycees. Motion unanimously
carried.
6. RESOLUTIONS AND ORDINANCES
(a) ORDINANCE NO. 9/81 - ORDINANCE AMENDING SECTION 520 OF THE 1974 ORDINANCE
CODE OF THE -CITY OF HUTCHINSON, ENTITLED BUILDING PERMIT FEES
City Engineer Priebe reported that a survey was taken of several other com-
munities, and it was learned that Hutchinson's building permit fees were
lower. It was recommended that the City increase its rates accordingly.
Following discussion, Alderman Gruenhagen moved to defer action and request
the City Engineer to present the old and new schedule of fees at the next
Council meeting. Seconded by Alderman Lueneburg, the motion carried unani-
mo us ly .
(b) RESOLUTION NO. 6834 - RESOLUTION AUTHORIZING RELEASE OF SECURITIES TO FIRST
NATIONAL BANK OF HUTCHINSON, MINNESOTA
After discussion, it was moved by Alderman Lueneburg, seconded by Alderman
Gruenhagen, to waive reading and adopt Resolution No. 6834 entitled Resolu-
tion Authorizing Release of Securities to First National Bank of Hutchinson,
Minnesota. Motion unanimously carried.
7. REPORTS OF OFFICERS, BOARDS AND COMMISSIONS
(a) BUILDING OFFICIAL'S MONTHLY REPORT - MAY 1981
There being no discussion, the report was ordered by the Mayor to be re-
ceived for filing.
(b) MINUTES OF PARK AND RECREATION BOARD DATED MAY 6, 1981
There being no discussion, the minutes were ordered by the Mayor to be re-
ceived for filing.
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(c) MINUTES OF "SENIORS ACTIVITY CENTER" ADVISORY BOARD DATED MAY 5, 1981
There being no discussion, the minutes were ordered by the Mayor to be re-
ceived for filing.
8. UNFINISHED BUSINESS
(a) CONSIDERATION OF REQUEST FOR CONDITIONAL USE PERMIT (PUD) SUBMITTED BY
RICHARD LARSON WITH FAVORABLE RECOMMENDATION OF PLANNING COMMISSION
(DEFERRED MAY 26, 1981)
This item was withdrawn from the Agenda upon the request of Mr. Richard
Larson, Developer.
(b) CONSIDERATION OF ADOPTING THE REVISED MINNESOTA STATE BUILDING CODE
(DEFERRED MAY 26, 1981)
City Engineer Priebe informed the Council the State requires the City to
adopt by reference the revised 1980 State Building Code.
Following discussion, the motion was made by Alderman Lueneburg to waive
the first reading of Ordinance No. 8/81 entitled An Ordinance Adopting the
Minnesota State Building Code and set the second reading for June 23, 1981.
Seconded by Alderman Gruenhagen, the motion carried unanimously.
(c) CONSIDERATION OF IMPROVEMENT FOR LOT 3, BLOCK 2, MADSON ADDITION
(DEFERRED MAY 12, 1981)
City Engineer Priebe briefed the Council on background information relative
to the recommended changes in the catch basin location and curb and gutter
removal and replacement for Lot 3, Block 2, Madson Addition. He further
stated the City had offered to absorb 50% of the cost of the total amount
of $1,522.25,for the work ($761.13 City and $761.12 Gary Gehlen). He had
received verbal approval from the owner, Gary Gehlen, to accept the split
cost offer by the City.
After discussion, Alderman Gruenhagen moved to approve the split cost agree-
ment for Lot 3, Block 2, Madson Addition. Seconded by Alderman Lueneburg,
the motion unanimously carried.
9. NEW BUSINESS
(a) CONSIDERATION OF REQUEST FROM DEVELOPER TO DELETE PROJECT 81-30 FROM 1981
IMPROVEMENT PROGRAM
City Engineer Priebe reported a letter was received from DuMax, Inc. request-
ing to delete Project 81-30, surface improvements to Jackson Street in Mc-
Donald's Sixth Addition, from the 1981 Improvement Projects. It would be
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JUNE 9, 1981
feasible to consider this improvement in 1982 according to the sub -division
agreement.
Following discussion, it was moved by Alderman Lueneburg, seconded by Ald-
erman Gruenhagen, to delete Project 81-30 from the 1981 Improvement Program
and consider it in 1982. Motion carried unanimously.
(b) CONSIDERATION OF CARPET REPLACEMENT AT HUTCHINSON COMMUNITY HOSPITAL
City Administrator Plotz commented that the Hutchinson Community Hospital
Board of Directors was requesting approval from the Council to replace car-
peting in the north, east, and south wings of the medical and surgical nurs-
ing units. The approximate cost of the carpet would be $9,000.00 plus in-
stallation, and the entire cost of the project was estimated at $13,000.00.
Bids will be accepted for installation of the carpet from local vendors.
After discussion, the motion was made by Alderman Gruenhagen to approve the
purchase of carpet replacement for the Hutchinson Community Hospital. The
motion was seconded by Alderman Lueneburg and unanimously carried.
(c) CONSIDERATION OF AMENDMENT OF WEED ELIMINATION ORDINANCE, SECTION 635:10
Parks and Recreation Director Ericson reported the present Ordinance on weed
elimination requires a certified letter be sent the property owner each time
weeds exceed 8" in height. The recommended change in the Ordinance would re-
quire only one notification for the growing season.
Following discussion, Alderman Gruenhagen moved to waive the first reading
of Ordinance No. 10/81 entitled Ordinance Amending Section 635:10 of the
1974 Ordinance Code of City of Hutchinson, Entitled Weed Elimination, and
set second reading for June 23, 1981. Seconded by Alderman Lueneburg, the
motion carried unanimously.
(d) CONSIDERATION OF RELOCATION OF T.H. 22
City Engineer Priebe reported that the Minnesota Department of Transporta-
tion had informed him the procedure to relocate T.H. 22 would be to pass a
Resolution of said request. It would then be submitted to the State, along
with a map showing the present location and proposed location.
It was the consensus of the Council that relocation of T.H. 22 would be
contingent upon the proposed development in the downtown area.
After considerable discussion, the motion was made by Alderman Gruenhagen,
seconded by Alderman Lueneburg, to defer this item until the June 23, 1981
Council meeting. Motion unanimously carried.
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10. MISCELLANEOUS
(a) COMMUNICATIONS FROM CITY ADMINISTRATOR
City Administrator Plotz stated he had completed'proposals for two firms
interested in locating in Hutchinson Industrial Park. As incentive to the
window manufacturing company and warehouse facility, the City offered to
provide industrial revenue bonds or notes and a write down on the cost of
land acquisition. Hutchinson is in competition with several other communi-
ties to attract these two firms to our town.
It was reported that the Assessment Rolls had been distributed at tonight's
meeting for the special hearing scheduled for Monday, June 15, 1981 at 8:00
P.M. in City Hall. Prior to this meeting, the Council will hold a workshop
at 7:30 P.M.
Mr. Plotz reminded the Council of the Annual League of Minnesota Cities Con-
ference to be held June 10-12, 1981 in St. Paul.
(b) COMMUNICATIONS FROM CITY ATTORNEY
(c)
City Attorney Schantzen reported the necessity of adopting a Resolution to
combine local improvements for the purposes of financing prior to the bond
sale on June 30, 1981. This will ensure the assessment of at least 20% of
each improvement and the issuance of the bonds to finance such improvement
without an election. The Projects to be combined are Nos. 81-03, 81-10,
81-18 and 81-29.
Following discussion, it was moved by Alderman Lueneburg to waive reading
and adopt Resolution No. 6835 entitled Resolution Relating to Local Improve-
ments Designated As Project Nos. 81-03, 81-10, 81-18 and 81-29; Combining
Such Local Improvements for Purposes of Financing. Seconded by Alderman
Gruenhagen, the motion unanimously carried.
COMMUNICATIONS FROM REALTOR JAMES DEMEYER
Realtor James DeMeyer presented drawings of a proposed project, Heritage
Square Condominiums, to be located on the corner of Merrill Street and
South Grade Road. He stated the request for a Conditional Use Permit would
be coming before the Planning Commission at their next meeting since a por-
tion of the property is zoned C-4. His purpose in presenting the project to
the Council at this time was to make them aware of it.
11. CLAIMS. APPROPRIATIONS AND CONTRACT PAYMENTS
(a) VERIFIED CLAIMS
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It was moved by Alderman Lueneburg, seconded by Alderman Gruenhagen and
carried unanimously, to approve the verified claims and authorize payment
from appropriate funds.
12. ADJOURNMENT
There being no further business to come before the Council, the meeting adjourned
at 8:23 P.M. upon motion by Alderman Lueneburg, seconded by Alderman Gruenhagen
and unanimously carried.
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