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05-29-1981 CCMMINUTES SPECIAL MEETING - HUTCHINSON CITY COUNCIL FRIDAY, MAY 29, 1981 The special meeting was called to order by Mayor Westlund at 11:15 A.M., with the following present: Aldermen Peterson and Gruenhagen, in addition to Mayor Westlund. Absent: Aldermen Lueneburg and Beatty. Also present: City Administrator Plotz and Parks and Recreation Director Ericson. Mayor Westlund read Publication No. 2421, Advertisement for Bids, City of Hutchinson, Phase I Development of McDonald's Park. The following bids were then opened and read: Wagoner Electric Company G - $48,000.00 Litchfield, MN Watts Electric, Inc. Long Prairie, MN Miller, Miller & Mac, Inc. Hutchinson, MN A & B Electric, Inc. Hutchinson, MN Metropolitan Fence Inc. White Bear Lake, MN Erickson & Templin Contracting Hutchinson, MN Minnesota Playground, Inc. Golden Valley, MN Crowley Fence Company Minneapolis, MN Quade's Inc. Hutchinson, MN Marcus Construction Co., Inc. Prinsburg, MN Century Fence Company Forest Lake, MN G - 45,000.00 G Alt. II - 20,000.00 F - 39,000.00 G - 48,512.00 G Alt. II - 17,970.00 I - 1,500.00 C - 22,500.00 D - 4,200.00 A - 35,000.00 G - 35,360.00 C - 17,855.00 Alt. C - 141P740.00 D - 5,192.00 G - 43,322.00 G Alt. II - 21,050.00 I 600.00 Alternate G - 52,261.00 (Includes con- cession stand) C - 27,842.00 D - 8,000.00 B - 1,649.00 C - 22,263.00 Alt. C - 19,550.00 D - 8,109.00 JW COUNCIL MINUTES MAY 29, 1981 Juul Contracting Company Hutchinson, MN Tennis West Ltd. Minnetonka, MN H - 25,381.50 - Base Bid Alt. H - 27,779.00 B - 1,800.00 C - 21,660.00 D - 7,400.00 Mayor Westlund commented that item G for electrical work did not seem to be very clear in the specifications. He then asked if any of the bidders had any comments. Skip Quade Commented that on item G and the building, Quade's Inc. he didn't believe the limits of responsi- bility for the electrical concern were spelled out very well. There was no design work on the electrical work so the bidder had to de- sign the voltages, etc. Stated Quade's had presented an alternate proposal for the building and field. They had added some items which he felt were of necessity but were not in the base bid. The specs. should have been laid out better. The electrical schematics showed very little, and there was no wire sizing. The fixtures did not show adequate pricing with the firm listed, and they are not the leader in the field. Quade's had used an alternate fixture. There were some open ends regarding the responsi- bility of the contractor and Hutchinson Utili- ties as to who will be doing some major work on the project. The addendum cleared up some of the questionable items. Don Wagoner Stated he had called the architects and did Wagoner Electric not get adequate answers to his questions. Commented the City had paid the architect, and they should get better representation. Bill Starry Questioned the one item regarding four fields. Watts Electric, Inc. Stated if fields were deducted, there would be nothing left. Gary D. Plotz Commented the quote was for installation of City Administrator lights and not for material or labor of in- stallation of the lights. The quote was for supply only. -2- COUNCIL MINUTES MAY 29, 1981 Craig Gallop He felt the wording could have been better Minnesota Playground, Inc. for clarity. DWayne Anderson Questioned what Minnesota Playground bid on. A & B Electric Stated that on an alternate bid, his company deducted for fixtures along with installation. Questioned the alternate I on the specs. Following discussion, it was moved by Alderman Peterson, seconded by Alderman Gruen- hagen, to refer the bids to City staff and City Engineer for review and recommenda- tion. Motion unanimously carried. Mayor Westlund reviewed the two prospective business clients interested in establish- ing a location in the industrial park. The first business proposes to relocate a portion of its business operation to the City of Hutchinson for the purpose of manu- facturing windows. The construction cost of their proposed building is $720,000.00. City Administrator Plotz contacted the County Assessor and received an estimated mar- ket value of the building after completion of $590,000.00. The estimated tax in- crement that the building would pay is $26,179.00 per year. Mayor Westlund pointed out that this manufacturing concern is requesting: 1) industrial revenue bond or note financing and 2) assistance in purchasing the property or other eligible tax incre- ment financing items. Administrator Plotz noted the company has requested several communities to submit a proposal by June 12, 1981 regarding an incentive package to locate in their respective community. Mayor Westlund highlighted the second business entity that was to locate in Hutchin- son with a warehouse of approximately 150,000 square feet (three acres). The esti- mated cost of the new facility is $2 million. Administrator Plotz notified the City Council that the county has estimated the market value of the warehouse after com- pletion to be $901,000.00 and the county has also estimated the tax to be $39,598.00 per year. In reviewing both of the proposals, Administrator Plotz pointed out it may be neces- sary to make an adjustment in the tax increment finance plan. However, this could be accomplished on a timely basis. After examining the anticipated tax increment for each of the proposed buildings, it was the consensus that the City should offer a portion of the tax increment as an incentive to bring the manufacturing company and warehousing to town. A motion was made by Alderman Gruenhagen and seconded by Alderman Peterson that the City make a conditional offer of two years of tax increment (estimated $52,358.00) towards the window manufacturing company and three times the tax increment created by the warehousing facility (estimated $118,794.00) to be applied towards the property acquisition or other eligible tax increment improvements, contingent on any formalities of revising the tax increment financing plan. Motion unanimously carried. -3- r COUNCIL MINUTES MAY 29, 1981 It was pointed out that the second industry will need railroad service in the future and, therefore, the additional money may be needed to help defray the cost of a spur track. It was the consensus of the Council that industrial revenue bonds or notes will be offered to each of the proposed facilities, contingent upon review and recommenda- tion of the City staff. City Administrator Plotz was instructed to correspond with each of the entities pursuant to the motion approved. There being no further business, the meeting adjourned at 12:15 P.M. IIE43