07-01-1981 CCMMINUTES
SPECIAL MEETING - HUTCHINSON CITY COUNCIL
WEDNESDAY, JULY 1, 1981
Mayor Westlund called the special meeting to order at 12:10 P.M., with the follow-
ing present: Aldermen Lueneburg, Gruenhagen and Beatty, in addition to the Mayor.
Absent: Alderman Peterson. Also present: City Administrator Plotz.
New Businesses Locating In Hutchinson
City Administrator Plotz gave a synopsis of the new business contemplating location
in the Industrial Park and available property.
Mayor Westlund reported on an 11:00 A.M. meeting held today with a representative
from a fuel alcohol company which is interested in coming to Hutchinson. Consider-
ation was given to a location in the Industrial Park, but it was felt this operation
should be located further out. The City promised the company three-year tax incre-
ments as an incentive to locate in our community. They were asked to provide finan-
cial information to the City prior to any letter of intent being submitted to them.
The Mayor commented that indications are several companies may be relocating in
Hutchinson in the next few years. Therefore, the City must be ready for them. Two
new recent developments in the last month are a proposed motel adjacent to the Casa
de Campa and a Thrifty Scot Motel across from the Prairie House.
Activity Center
Mayor Westlund commented on the joint school/city meeting held this morning regarding
the proposed activity center. An architect is preparing information which will be
submitted to the School Board and City Council. Discussion was then given to costs
and site location(s). It was reported that Tom Savage had negotiated with property
owners for a purchase option on possible sites, but he had been unsuccessful with
owners on the north side of First Avenue. The first house was willing to sell so
it could possibly be used for parking.
The Mayor asked the Council for firm action on what should be done with the Old Armory
building. It was pointed out that if the City knows it will build a new activity
center, the Old Armory should be sold. The Citizens Bank would like a decision from
the City on the sale of the building. Alderman Beatty stated a contingency should be
that the new gym be built before the Armory is torn down. The Mayor and City Admin-
istrator will continue to negotiate with the bank for firm action.
The Council members were in agreement that the first priority would be for a joint
activity center with the school, but if no decision has been reached by fall, the
City will build on City -owned property by the Civic Arena. It was the consensus of
the Council that by the date of January 1, 1983 a new activity center should be built,
with or without the school.
Ne
COUNCIL MINUTES
JULY 1, 1981
Miscellaneous
It was pointed out the former house Finley Mix owned at Dale and Second Avenue has
a sewer line problem. The line has been under -sized, blocked up and flowed into the
storm sewer. The water then accumulates on the river bank. Discussion was given to
a solution of the problem. The Mayor instructed the City Administrator to secure a
report from the City Engineer on this matter.
Mention was made that the warming house by the skating rink needs to be painted.
Mayor Westlund remarked that RCM would like to meet with the City Council, City En-
gineer, Director of Operation and Maintenance, Wastewater Treatment Plant Superinten-
dent, and other staff to discuss the Hutchinson Wastewater Treatment Improvement Pro-
gram. This meeting will be arranged in the next several weeks.
The Mayor reported that Richard Schmidtbauer was upset about the Council action
taken at the June 23, 1981 meeting, and he had stopped in to see the Mayor about it.
Downtown Development
The Mayor reported he had met with Developer Ken Lever a number of times to discuss
the downtown development in Hutchinson. Mr. Lever is presently working on a plan.
Also, he had met with the City Administrator and Bill Fahey of Ehlers & Associates
regarding tax increments to be used in developing the downtown, ie. parking lots,
etc. All reports indicate feasibility of the project which would be in two phases:
1) downtown development and 2) hotel/motel complex.
In order to obtain financing it will be necessary to have a market study prepared
by a recognized firm. The cost of the market study would be approximately $20,000.00
for the downtown, and the housing phase would be handled by Ken Lever.
City Administrator Plotz reported Dan Wilson is employed by Ken Lever to work on the
project. The retail center cost of approximately $120,000.00 and parking based on
the formula would create assessment against the project. It would support acquisi-
tion of property and write down of cost of the land. The land acquisition would be
over $1 million.
Following discussion, it was the consensus of the Council to have the market study
prepared at City expense. This information would then be available to the public
upon request.
The motion was made by Alderman Beatty to instruct Ken Lever the City will bear the
cost of the market study requested for a maximum of $20,000.00, contingent on money
being available and the information becomes City property. Seconded by Alderman Luene-
burg, the motion carried unanimously.
There being no further business, the meeting adjourned at 1:05 P.M.
-2-