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11-19-1981 CCM (2)V MINUTES SPECIAL MEETING - HUTCHINSON CITY COUNCIL THURSDAY, NOVEMBER 19, 1981 The special meeting was called to order by Mayor Westlund at 9:00 A.M., with the following present: Aldermen Carls, Lueneburg, Gruenhagen and Beatty in addition to Mayor Westlund. Also present: City Administrator Plotz. Mayor Westlund opened the meeting by commenting on the bid received from Citizens Bank & Trust for the Old Armory and stated the Old Armory building had not been sold as so many people seemed to think. He further stated that in 1976 the City Council decided to have a Comprehensive Plan prepared for the City, which took in seven dif- ferent areas of planning. The former Mayor, D. J. Black, appointed 10-11 people to work on the various studies, and the TKDA study resulted. This is the guide that the Council has been following. The Mayor reported the Old Armory was purchased from the National Guard in 1972 or 1973. Following City ownership, the senior citizens used the basement for their ac- tivities. The building has also been used by the Motor Vehicle Department, City Rec- reation Department, as well as a thrift shop operated by the Hutchinson Community Hos- pital. The senior citizens will soon have a permanent location in the Senior Center of the Evergreen Apartments. Mayor Westlund commented there has been opposition ex- pressed to the sale of the Armory building. Mayor -Elect DeMeyer addressed the subject of the Old Armory and mentioned the con- troversy over the sale of it. He stated the Council was looking at a building with the value of $800,000 and replacement of it at another value. There is a need to look at other aspects of the building. Other buildings are updated from time to time to serve better. The building belongs to the community, and it is the money of the citizens to replace the structure. They do not want it sold or removed. Nell Gehrke She stated she was involved in volleyball in the Old Armory. They would be forced out of the Armory because there are other groups that want to use the building. She felt that cost effectiveness must be considered, and it would be a great expense to replace the building. She would like to use the Old Armory for many, many years. Rita Tasche She stated she had worked in the basement of the Old Armory for one and one-half years. When a building is removed, it is for the reason that the building has no more use; but this is not the situation with the Old Armory. There is still usefulness in the building, and she would hate to see it torn down. Pat Mikulecky He requested information from Mr. Burich regarding his plans for the building in the future. 0-0 COUNCIL MINUTES NOVEMBER 19, 1981 Unidentified He asked if any grants would be coming for this new Man building. The only inside facility for young people is the Old Armory so he felt the building should be kept until it is known what the replacement will be. Mayor Westlund The Mayor answered there were no grants at the present time, but they were looking at revenue sharing dollars for the next two years. He expressed concern about the new Police Station and relocating the Motor Vehicle De- partment. Tom Stibal Mr. Stibal stated he had joined the National Guard in 1928 and was a member of Old Guard Company G. At that time the Old Armory was a new building. He wondered why the City was talking about taking down a building that was only around 50 years old. He further commented on a remark made by the Mayor that it was too costly to heat the Armory and the boiler was bad. He pointed out the boiler is too big for the building, but it operates. There is a boiler inspection made periodically. Mr. Stibal pointed out it wasn't only the Senior Citizens Club that used the building, but other groups also meet in the Old Armory. The Senior Citizens Activity Center in the Armory was funded from grant monies and not from City funds. He stated he was against the sale of the Armory. Mayor Westlund The Mayor stated he had never made a comment about the boiler, but he had said the maintenance of the building was expensive. He further pointed out the meeting facili- ties for the Senior Citizens Club and other groups would be at the new apartment building, Evergreen Apartments. Dick Nahlovsky He stated the building is being used from early in the morning until late at night. The volleyball team he is on could not play until 11:00 P.M. Gayle Wick Mr. Wick asked for a response from the entire Council. He stated so far only the Mayor had been making the re- marks on the issue. Unidentified Lady She had one question regarding the amount of floor space that would be given to the senior citizens in the new building. City Admin. Plotz Mr. Plotz answered 4,500 square feet was available. -2- COUNCIL MINUTES NOVEMBER 19, 1981 Helga Nielsen She commented the Nutrition Center will be moved to the new location, and she wondered how it would be possible to provide facilities for all the activities in the Sen- ior Center. City Admin. Plotz Mr. Plotz stated the nutrition program plans to rent the facilities for a certain time of the day. Helga Nielsen Ms. Nielsen wanted to know where the other groups would meet during the time the nutrition program was in progress. She further inquired who had been contacted regarding the area needed for the nutrition center. The nutrition pro- gram must provide for other activities as well. She point- ed out the City had given no support or funding to the nutrition program in the past. In 1965 when the Older American Act was passed, the law required all buildings be made accessible to all people. Revenue sharing funds became effective in 1968, and 25% were to be put aside for senior citizens. This was not done in Hutchinson. She stated it would have been cheaper to have done it back then. This is not the time to do a lot of building. Hazel Sitz She responded to the hours the nutrition program would be Personnel Coord. in operation. She further explained the Senior Center was multi-purpose and was laid out with many facility uses. The large kitchen and dining area would accommodate 100 people, or more if necessary. Adjacent to it was another kitchenette with an area that could be closed off for an- other meeting. A separate lounge area could also be closed off for a third group meeting. City Admin. Plotz Mr. Plotz reported a public hearing is held each year re- garding revenue sharing dollars. He stated he was not aware of any law, but there is a local option. Helga Nielsen Ms. Nielsen agreed that it was true the City did not have to set aside funds; it was only the first year the City was obligated to set aside 25%. Cities put pressure on the Legislature, and they changed the law so that only public hearings were held. In Hutchinson it was decided that whatever revenue sharing funds were used for was al- so good for the senior citizens. Mayor Westlund Mayor Westlund responded that up until this year the rev- enue sharing funds have gone into the City's general fund. -3- .i COUNCIL MINUTES NOVEMBER 19, 19 81 MaryAnn Arndt She asked where the City would build a building to re- place the Old Armory. Mayor Westlund The Mayor answered that the City had been working with the School District for the past six months on a joint project. The proposed location was east of the elemen- tary school, and the property owners had been contacted. MaryAnn Arndt She stated this would mean removing more houses. She asked if this would be reasonable. Some people did not know about the fire station location who lived in the area. She asked if the residents in the area of the elementary school wanted the building there. Everyone in town should know where the building will be located before it is built. Lenard Schuft Mr. Schuft stated he was speaking for the elderly as Vice -Chairman of the Seniors Club and Board of the Elder- ly. fey wanted to see one landmark remain in the City. Irvin Burich Mr. Burich stated he had no qualms with what had been said. (Citizens Bank) The Bank submitted a bid on the Old Armory in July on be- half of the Downtown Council. The bid related to the land price and the City's parking fund. Prior to that time, the Armory and Wigen Building had both been appraised. He pointed out it would be "stupid" for a bank to submit a bid on a building, but it was done to assist the City with a parking program. He further stated he disagreed with Mr. DeMeyer's figure of $800,000 for value of the Old Armory. Mayor Westlund The Mayor asked if the Bank were to buy the Old Armory, what would be the use of the lot. Irvin Burich Mr. Burich responded the lot would be used for public parking to provide adequate parking downtown. The prop- erty would be owned by the Bank but open to the public to help resolve parking problems for employees and cus- tomers. us- tomers. Mayor Westlund Mayor Westlund asked what cost the Bank would be willing to pay for the building. Irvin Burich Mr. Burich answered some items would have to be negotiated. The First Avenue project had been abandoned inasmuch as the Bank had requested more of a mall effect on that street. -4- COUNCIL MINUTES NOVEMBER 19, 19 81 Mayor Westlund Irvin Burich Mayor Westlund Irvin Burich He stated that in the bid the Bank mentioned $135,000 for purchase of the property and $65,000 as a contribu- tion. He replied the contribution was contingent on the City building a new structure to replace the Old Armory. The Mayor inquired about possession of the location. He responded this matter would be negotiable. The Bank had no plan to tear down the building immediately. This would allow the new Council time to get their plans to- gether and establish a time frame for construction of the new building. Mayor Westlund He remarked on former visits between Mr. Burich, City Administrator Plotz and himself regarding the Old Armory. There would be a four or five year time period before possession would be turned over to the Bank if they were sold the Old Armory. Irvin Burich He stated the Bank was looking at a time period of Jan- uary 1, 1984. The City was talking about 1986 or 1987 before anything would be completed. He reiterated that there was inadequate parking downtown, and locations for customer parking are not easy to find. He stated the Bank gave up the Wigen Building for employee parking to help the downtown parking program. There was a large amount of money being considered and the maintaining of property. Mayor Westlund The Mayor commented on the maintenance and cost of the Old Armory for the next five years. He pointed out noth- ing has been done for improvements in the last five years, although some dollars have been spent on general mainten- ance. The City had requested the City Engineer and Build- ing Inspector to inspect the Old Armory building and give a report of expenses to upgrade it to code. Homer Pittman The Building Inspector reported the estimated total fig - Bldg. Inspector ure to upgrade the Old Armory would be $171,000, with an additional $30,000 for air conditioning of the upper level. He further stated that all public buildings must meet the fire regulations and fire codes as well as requirements for the handicapped. Neither the Old Armory nor City Hall meet these requirements. Rita Tasche She stated she had worked in the basement of the Old Armory, and they didn't need air conditioning down there. Also, the handicapped didn't have to go upstairs. She didn't think the balcony was used for anything. -5- N COUNCIL MINUTES NOVEMBER 19, 1981 Homer Pittman Inspector Pittman responded that two-story buildings must have access to the upper story for the handicapped either by ramp or elevator. If the facility is there, it must meet building and fire codes irregardless of whether or not it is used. Unidentified Man He asked if air conditioning was a requirement. He wanted to know what has to be done, not what could be done. Gayle Wick He pointed out City Hall is not up-to-date. He then asked Mr. Burich what he thought about upgrading the Armory. Irvin Burich He did not feel the Armory was a landmark but rather only an old building. He didn't think it would be worth the money to update it. The Citizens Bank was built in 1886, on a choice location, and it was remodeled since it is difficult to relocate a bank. Gayle Wick Mr. Wick stated that if the City is thinking about the future, they should consider City Hall. He felt the Old Armory site was a No. 1 location. He couldn't understand the reason for the Bank selling the Wigen Building to the City and exchanging properties, ie. Old Armory site. Mayor Westlund The Mayor stated the City had on file a $204,680 appraisal on the Armory building. The bid received from the Bank was for $135,000 and a $65,000 contribution for a total of $200,000. Gayle Wick He stated there was a differential between the bid sale price and the appraisal. The Old Armory was being sold below appraised value, but the City paid the Bank full appraised value for the Wigen Building. Irvin Burich Mr. Burich pointed out the reason for a contribution in- stead of offering the full sale price. There would be a tax deduction on the land. If the Bank takes the build- ing down, it would not be depreciable. Gayle nick He stated he wasn't sure the City should be involved in IRS dealings. Irvin Burich Mr. Burich commented that the Bank would be taking a loss on the building, but it didn't make any difference how the City paid for the Wigen property. He would like to see the City build another building for the people who are now being accommodated in the Armory. mom 0 COUNCIL MINUTES NOVEMBER 19, 1981 Gayle Wick Mr. Wick reported the School District had paid an archi- tect to prepare a drawing at a time when school funds are short. He stated most of the citizens want to keep the Old Armory, and there are other buildings available that can be purchased. He also commented on the tax increment districts shifting the tax burden to everyone else. Jim DeMoyer Mr. DeMeyer asked the Building Inspector what it would cost to replace the Old Armory building updated of like kind in the like location. He thought they were looking at $1 million or more if the bid was for a community con- tractor with the land inclusive. Mayor Westlund The Mayor stated Mr. DeMeyer was putting the Building In- spector on the spot because he did not know the land cost, and they weren't looking at like kind. Alderman Gruenhagen When the Council first started talking about selling the Armory or keeping it, they tried to decide which was the better way to go. If the Old Armory is sold, it has to be replaced with another building. So far the only thing done is research into the matter. The School District and the City both had a need so a committee was formed to in- vestigate the feasibility of a joint project, but it never materialized. The Council has discussed replacing the Arm- ory with another building located on city -owned property by the Arena. of the Armory would cost about $150,000 without air conditioning. Alderman Gruenhagen stated he didn't care where the money came from, but the actual dollars on the table are what's important.' Alderman Carls He could see a definite need for additional space for the program conducted in the Old Armory building, and it would make sense to build another building. A hard decision will have to be made in the near future of what to build, where and what it will cost. There are also other buildings that are not adequate, ie the Police Department and Library. The question could be placed before the voters, and hope- fully they would approve it for progress in the community. Alderman Carls was not favorable to selling the Armory un- til such time as the Council knew where it was going in this project. Alderman Beatty The sale of the Old Armory was proposed by the joint city/ school committee. If the business community is to be kept viable, it must move ahead with parking in the downtown. Alderman Beatty said that unless he knew what would replace the building, he would not favor selling the Old Armory. -7- V/ COUNCIL MINUTES NOVEMBER 19, 1981 Jim DeMeyer He pointed out that the people of Hutchinson are not con- demning anyone, but they want the Old Armory building to remain theirs. The Armory belongs to the people. Alderman Gruenhagen He stated he didn't know if it appeared he was favorable of selling the Old Armory, where actually nothing has been sold or built. He would like to see the issue brought to a referendum, which costs money. The Council has to look at matters to see if they are feasible; and at times they have to take a stand, even if it is opposed. He would like to see more research done. Mayor Westlund The Mayor stated the City Charter requires two readings on an Ordinance to sell City property. There are only 12 people present today to represent the City. Irvin Burich Mr. Burich remarked that this issue has been running since July when the bid from the Bank was received by the City. This situation cannot continue indefinitely. Soemone must make up their mind, and the offer should either be accepted or rejected. Pat Mikulecky He commented that in the future the public should be made known of any dealings for the sale of the Old Armory and announced in advance of the meeting so the public is aware of it. Mayor Westlund The Mayor responded this matter will be placed on the Coun- cil agenda for the November 24, 1981 meeting. George Field Fire Marshal Field reported he had prepared a report for the Council, and he felt it should be addressed within the next six months. Realtor Tom Savage appeared before the Council and requested the City consider pur- chasing the property of the Emma Becker estate in the amount of $15,000. The parcel is located on Third Avenue by Ty's Metal and Hutchinson Manufacturing, and there is a city street on the property that was never designated for said purpose. It was the consensus of the Council that the City would have no use for this property, but suggested that Mr. Savage contact Bud Daggett regarding purchase. The motion was made by Alderman Beatty to refer the street question to the City At- torney for a report within two weeks. Seconded by Alderman Gruenhagen, the motion unanimously carried. COUNCIL MINUTES NOVEMBER 19, 1981 City Administrator Plotz reported a letter had been sent to the property owners along the river. Realtor Tom Savage had contacted them and determined most of the property owners would be willing to sell to the City. Appraisals are being done by Van Orden Realty, and it will probably be spring before the purchases can be made. Mayor Westlund stated the June 18, 1981 Council minutes contained the agreement be- tween the City and Tom Savage for his work. Mr. Savage will submit a statement to the City for the projects he worked on in accordance with the agreement. Mention was made that the tree dedication in honor of former Mayor, D. J. Black, would be held November 28, 1981. The dates and times for several up -coming meetings were established. It was suggested by Alderman Carls to establish a Task Force of progressive people who could put together a priority rating of the community and a strategy for reach- ing those goals. A referendum could then include all the items, rather than only the Library, with a separate question for each issue. There being no further business, the meeting adjourned at 11:05 A.M. cm