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cp04-23-85 c1 -1 U TCH I NSON C ITY CALENDAR WEEK OF pi [1 21 TO April 27 19N 5 WEDNESDAY SI'sCRV'FAP,Y DAY 1,):(10 _ 11:00 A.M. - Meeting j ,I Oireciors nt City Hall SUNDAY MONDAY TUODAY -21- -22- -23- PROFESSIONAL SECRETARY WEEK 2:00 P.M. - Open Bids for 4:30 P.M. - Nursing Home Board Park Tractor at Meeting at Burns City Hall Manor 7:30 P.M. - City Council Meeting at City Hall THURSDAY FRIDAY SATURDAY -25- -26- A -27- a AGENDA REGULAR MEETING - HUTCHINSON CITY COUNCIL • TUESDAY, APRIL 23, 1985 1. Call to Order - 7:30 P.M. 2. Invocation - Reverend Gerrit Molennar Jr. 3. Consideration of Minutes - Special Meeting of March 26, 1985; Hid Openings of March 1985 and April 160 1985; and Regular Meeting of April % 1985 Action - Approve as distributed - Approve as amended 4. Routine Items (a) Reports of Officers, Boards and Commissions 1. Financial Report of March 1985 2. Planning Commission Minutes dated March 199 1985 3. Hospital Board Minutes dated March 19, 1985 Action - Order report and minutes to be filed • (b) Resolution No. 8025 - Resolution for Purchase Action - Motion to reject - Motion to waive reading and adopt (c) Consideration of Application for License to Sell Cigarettes At Retail At Roberts Park Concession Stand Action - Motion to reject - Motion to approve, issue license and waive fee 5. Public Hearing - 8 :00 P.M. (a) Consideration of Parkview Plaza Limited Partnership (Hotel Project) 1. Housing Revenue Bonds Action - Motion to close hearing - Motion to reject - Motion to approve Housing Revenue Bonds and adopt Resolution 2. Industrial Revenue Bonds Action approve • 3. Tax Action approve Motion to close hearing - Motion to reject - Motion to IRBs and adopt Resolution Increment Financing (CONTINUED HEARING FROM MARCH 26, 1985) Motion to close hearing - Motion to reject - Motion to tax increment financing and adopt Resolution 1 COUNCIL AGENDA APRIL 239 1985 • 6. Communications, Requests and Petitions (a) Consideration of Request for City Attorney to Attend DWI Implied Consent Seminar On May 9 -10, 1985 Action - Motion to approve - Motion to reject (b) Consideration of Request for Community Development Director to Attend Conference Action - Motion to reject - Motion to approve request (c) Consideration of Request for Three Year Extension On Albrecht Oil 1980 Conditional Use Permit Action - Motion to reject - Motion to approve extension 7. Resolutions and Ordinances (a) Ordinance No. 6/85 - Ordinance Amending Section 806;15 of the 1974 Ordinance Code of the City of Hutchinson, Entitled Intoxicating Liquor, Administration Action - Motion to reject - Motion to waive second reading and adopt (b) Resolution No. 8021 - Resolution of Appreciation to Norah Mullan Action - Motion to reject - Motion to waive reading and adopt (c) Resolution No. 8026 - Transferring $254,175 from 1980 Tax Increment Debt Service Fund to 1984 Parking Improvement Fund And All Future Increment of Area IV Action - Motion to reject - Motion to waive reading and adopt 8. Unfinished Business (a) Consideration of Request for Liquor Store Improvement to Refinish Sides of Building (DEFERRED APRIL 99 1985) Action - Motion to reject - Motion to approve (b) Consideration of Awarding Bid for Recreation Facility /Pool (DEFERRED APRIL 16, 1985) Action - Motion to reject - Motion to approve and award bid (c) Review of Former Satterlee Pit Site Action - `a 0 �J COUNCIL AGENDA APRIL 23, 1985 (d) Consideration of Establishing Just Compensation of Property Owned By Mrs. Gilbert Boldt (DEFERRED APRIL 9, 1985) Action - Motion to reject - Motion to establish just compensation in amount of appraised value and authorize City Attorney to make offer to purchase (e) Consideration of Establishing Just Compensation of Property Owned By Henry "Chris" Kadelbach (DEFERRED APRIL 9, 1985) Action - Motion to reject - Motion to establish just compensation in amount of appraised value and authorize City Attorney to make offer to purchase (f) Consideration of Establishing Just Compensation of Property Owned By Mr. & Mrs. Eugene Schimmel (DEFERRED APRIL 9, 1985) Action - Motion to reject - Motion to establish just compensation in amount of appraised value and authorize City Attorney to make offer to purchase (g) Consideration of Awarding Bid for Repair Ground Storage Reservoir • (DEFERRED APRIL 189 1985) Action - Motion to reject - Motion to approve and award bid (h) Consideration of Awarding Bid for Park Tractor (DEFERRED APRIL 22, 1985) Action - Motion to reject - Motion to approve and award bid 9. New Business (a) Consideration of Delinquent Water and Sewer Accounts Action - Motion to authorize extension of payment period - Motion to authorize discontinuation of service (b) Consideration of Offer from Mr. & Mrs. Lloyd Schlueter to Purchase City Owned Lot No. 11, Block 3, Se 1 chow- Jorgenson Subdivision Action - Motion to reject - Motion to approve offer of purchase and order Ordinance authorizing sale (c) Consideration of Request by Leonard Miller to Continue Farming City Land Adjacent to Second Avenue Bridge And Erie Street • Action - Motion to reject - Motion to approve request 3 COUNCIL AGENDA APRIL 23, 1985 i (d) Consideration of Conditional Use Permit Requested by Quentin Larson /Doug Dobratz with favorable recommendation of Planning Commission Action - Motion to reject - Motion to approve and adopt Resolution No. 8022 (e) Consideration of Conditional Use Permit Requested by Leonard Riemann with favorable recommendation of Planning Commission Action - Motion to reject - Motion to approve and adopt Resolution No. 8023 (f) Consideration of Sideyard Variance As Requested by Leonard Riemann with favorable recommendation of Planning Commission Action - Motion to reject - Motion to approve and adopt Resolution No. 8024 (g) Consideration of Sketch Plan Submitted by Gerald Gassman (Within Two Mile Radius) with favorable recommendation of Planning Commission • Action - Motion to reject - Motion to approve and recommend approval to County (h) Consideration of Using Hutchmobile On June 16, 1985 for Airport Dedication Action - Motion to reject - Motion to approve and waive fare (i) Consideration of On -Sale Non - Intoxicating Malt Liquor Licenses: 1. Pizza Hut 2. J's Pizza Garten 3. Gold Coin Chinese Restaurant 4. Godfather's Pizza 5. Little Crow Bowling Lanes 6. Crow River Country Club Action - Motion to reject - Motion to approve and issue licenses (j) Consideration of Off -Sale Non - Intoxicating Malt Liquor Licenses: 1. Hutchinson Warehouse Grocery 2. Hutchinson Tom Thumb Food Market 3. Southtown Mobil 4. Erickson's Big "D" Supermarket 5. One -Stop Gas IN Grocery • 6. George's Food & Fuel Action - Motion to reject - Motion to approve and issue licenses m W COUNCIL AGENDA APRIL 23, 1985 (k) Consideration of Request for Jaycee Water Carnival Permits: 1. Parade Permit 2. Dance Permit 3. Firework's Permit 4. Permission to Close Streets and Use Library Square Action - Motion to reject - Motion to approve and issue permits and waive fees (1) Consideration of Stop Sign On Corner of Third Avenue Southeast And Jefferson Street Action - Motion to reject - MotJon to approve and prepare Ordinance (m) Consideration of Setting Public Hearing Date for Liquor License Issuance (Larry Bethke, Victorian Inn) Action - Motion to reject - Motion to set public hearing for May 14, 1985 at 8 :00 P.M. (n) Consideration of Security Light In Rear of Liquor Store • Action - Motion to reject - Motion to approve (o) Consideration of Council Approval for Sale of Parcel B Property On Lewis Avenue According to City Subdivision Ordinance Action - Motion to reject - Motion to approve sale and order Resolution (p) Consideration of Engineering Service for Water Reservoir Action - Motion to reject - Motion to approve (q) Consideration of Engineer's Report for Improvement Project No. 85 -01 -39 Action - Motion to reject - Motion to approve engineer's report - Motion to waive readings and adopt Resolutions No. 8027, No. 8028 and No. 8029 (r) Consideration of Setting Public Hearing Date for Liquor License Issuance (Gary Miller) Action - Motion to reject - Motion to set public hearing for May 14, 1985 at 8 :00 P.M. • 10. Miscellaneous (a) Communications from City Administrator 5 COUNCIL AGENDA APRIL 23, 1985 16 11. Claims, Appropriations and Contract Payments (a) Verified Claims Action - Motion to approve and authorize payment from appropriate funds 12. Adjournment 0 0 MINUTES SPECIAL MEETING - HUTCHINSON CITY COUNCIL TUESDAY, MARCH 26, 1985 The special meeting of the City Council was called to order at 5:00 P.M. in the Council Chambers by Mayor Stearns. The following were present: Alderman Mike Carls, Alderman John Mlinar (arrived late), Alderman Marlin Torgerson, Alderman Pat Mikulecky (arrived late), and Mavor Robert H. Stearns. Also present: City Administrator Gary D. Plotz and City Attorney James Schaefer. Mayor Stearns commended the City Directors for the good reports submitted to the Council concerning the use of compensatory time and suggestions for reduc- ing accumulation of over -time. Lengthy discussion was given to the city's policy on the accumulation and use of compensatory time and vacation time. City Administrator Plotz reviewed a survey of seven cities' compensatory and vacation policies. It was pointed out that the majority of these cities did not have a general policy handbook; however, they did have personnel policies • and job descriptions, as does Hutchinson. City Administrator Plotz prepared several alternative policies on the accumula- tion and use of compensatory time and vacation time. The alternatives were listed by the major areas of concern: 1. Rate compensatory accumulates 2. Time -frame compensatory time may be used 3. Reporting of compensatory time 4. Vacation utilized in blocks 5. Combining compensatory time and vacation time The Mayor and Council decided they would like more time to review the written reports and the verbal input received at this meeting. The Council will then advise the City Administrator on the policy they would prefer to implement. The special meeting adjourned at 6:05 P.M, 9 N �J n E MINUTES BID OPENING THURSDAY, MARCH 28, 1985 The bid opening was called to order at 2:00 P.M. Present were: City Adminis- trator Gary D. Plotz, Asst. City Engineer Calmer Rice,and Administrative Sec- retary Marilyn Swanson. The reading of Publication No. 3387, Advertisement for Bids, Letting No. 7, City Project No. 85- 01 -24, was dispensed with, and -the following bids were opened and read: Wm. Mueller & Sons, Inc. Hamburg, MN $130,792.75 Atkinson Blacktop, Inc. Litchfield, MN 129,831.00 Hardrives, Inc. St. Cloud, MN 151,482.90 The reading of Publication No. 3388, Advertisement for Bids, Letting No. 9, City Project No. 85- 01 -36, was dispensed with. The following bids were opened and read: Wm. Mueller & Sons, Inc. Hamburg, MN $ 12,055.00 Erickson & Templin Excay. Hutchinson, MN 8,741.50 The bids were referred to the Engineering Department for review. There being no further business, the meeting adjourned at 2:10 P.M. W. MINUTES REGULAR MEETING - HUTCHINSON CITY COUNCIL • TUESDAY, APRIL 9, 1985 1. The meeting was called to order by Mayor Stearns at 7:30 P.M. The fol- lowing were present: Alderman Mike Carls, Alderman John Mlinar, Alder- man Marlin Torgerson, Alderman Pat Mikulecky, and Mayor Robert H. Stearns. Also present: City Administrator Gary D. Plotz, Director of Engineering Marlow V. Priebe, and City Attorney James Schaefer. 2. INVOCATION The invocation was given by the Reverend Gerrit Molennar Jr. 3. MINUTES Following discussion, Alderman Mikulecky moved to amend the March 26, 1985 minutes to include the entire letter from James G. De Meyer. The motion was seconded by Alderman Torgerson and failed four to one, with Alderman Mikulecky voting aye and Aldermen Carls, Mlinar and Torgerson and Mayor Stearns voting nay. Alderman Carls made the motion to approve the March 13, 1985 special meeting minutes as distributed and the March 26, 1985 regular meeting minutes as amended. The motion was seconded by Alderman Mlinar and car- 40 ried four to one, with Alderman Mikulecky voting nay. 4. ROUTINE ITEMS (a) REPORTS OF OFFICERS, BOARDS AND COMMISSIONS 1. BUILDING OFFICIAL'S REPORT - MARCH 1985 2. NURSING HOME BOARD MINUTES DATED FEBRUARY 289 1985 3. TREE BOARD MINUTES DATED MARCH 6, 1985 4. PARRS AND RECREATION BOARD MINUTES DATED MARCH 69 1985 Mayor Stearns ordered the report and minutes to be filed. (b) RESOLUTION NO. 8013 - RESOLUTION FOR PURCHASE Following discussion, it was moved by Alderman Carls, seconded by Alderman Torgerson, to waive reading and adopt Resolution No. 8013 for the purchase of grader tires, construction materials, and air paks with spare tanks and holders. Motion carried unanimously. (c) CONSIDERATION OF REQUEST FOR REDUCED TRASH AND REFUSE RATE BY AGNES SITZ • After discussion, the motion was made by Alderman Carls to approve the reduced trash and refuse rate. Alderman Mlinar seconded the motion, and it unanimously carried. 1 COUNCIL MINUTES APRIL 9, 1985 • (d) CONSIDERATION OF APPOINTMENTS: 1. CITY TREE BOARD - JERRY BROWN 2. HOSPITAL BOARD - DORI JOHNSON 3. LIBRARY BOARD - ALBERT LINDE AND KATHY MCGRAW 4. NURSING HOME BOARD - LARRY GRAF 5. PLANNING COMMISSION - LARRY ROMO AND DR. THOMAS LYRE 6. POLICE CIVIL SERVICE COMMISSION --DR. ROBERT PROCHNOW 7. POLICE STATION BUILDING COMMITTEE - DEAN O'BORSKY, JOHN GREGOR, CHUCK JONES, CHAD PIEHL, DICK BURGART, PAT DURFEE, PHYLLIS HEGRENES, KENNETH GRUENHAGEN, NORMAN TULMAN, AND RUSSELL MEADE It was moved by Alderman Torgerson, seconded by Alderman Mlinar, to ratify the above -named appointments. Motion carried unanimously. 5. PUBLIC HEARING - 8 :00 P.M. (a) IMPROVEMENT PROJECT NO. 85 -01 -37 • The public hearing was called to order at 8 :00 P.M. by Mayor Stearns. Director of Engineering Priebe reported there was a drainage problem in the area north of Fifth Avenue Northwest west of Main Street. It was his recommendation to construct a storm sewer service and appurtenances at an estimated cost of $13,192. Mr. Priebe stated it would be necessary to obtain an easement from the Saar property on the east. Mayor Stearns stated that Mr. and Mrs. Arthur Saar, 45 Fifth Avenue N.W., had submitted a letter in opposition of the improvement assessment on the Fifth Avenue Northwest project. Mr. Jon Marshall, 37 Fifth Avenue N.W., stated that when it rains, it becomes like a flash flood. The water comes down the swell and hits the lower ground. The present drain cannot handle the water, and during the spring thaw the drain plugs up. Mrs. Art Saar commented that when Maplewood Academy started build- ing, the school changed the contour of the land; therefore, the drainage from the other buildings comes down into the property owners' yards. Mrs. Jon Marshall reiterated that between the Nelson and Peterson properties there is a constant flow of water. It was suggested that drains be placed on Maplewood property and behind the Nelson 2 COUNCIL MINUTES 46 APRIL 99 1985 property out to the street. The problem needed to be taken care of . City Engineer Priebe thought perhaps the tile had collapsed or was plugged up during the winter months. It is an old tile in the area that hooks up with county tile. Mr. Marshall reported the City Engineer had been out to look at the area about a year ago, but the problem was getting worse. Mr. Charles Nelson, 105 Fifth Avenue N.W., concurred and hoped some- thing could be done about the situation. A representative from Maplewood Academy stated the school had not done any landscaping in the past eight years. Mrs. Art Saar responded that the excavation at the school had been done 20 years ago when heavy equipment came in and moved dirt. City Engineer Priebe pointed out the city didn't have full -time staff to monitor the problem when the building was done; also, the city had no zoning and building codes at that time. It was his • recommendation to combine the two areas and resolve the problem. Mr. Jon Marshall believed that during the time he owned his prop- erty, the neighbors had been assessed for square footage. They did not have a problem with water, but it seems to come from the north or northwest. He didn't feel the property owners should be assessed since it was not their problem. Mrs. Jon Marshall stated there was a valley from the school build- ings where the water ran, and their drain cannot handle the amount. The motion was made by Alderman Carls to close the hearing at 8 :30 P.M. Alderman Mlinar seconded the motion, and it unanimously car- ried. Alderman Carls moved to reject the plan for improvement project No. 85 -01 -37 and to waive reading and adopt Resolution No. 8011 reject- ing the plan. The motion was seconded by Alderman Mlinar and car- ried unanimously. It was moved by Alderman Carls to direct the City Engineer to re- view the area and come up with a new plan. Alderman Torgerson sec- onded the motion, and it unanimously carried. 6. COMMUNICATIONS, REQUESTS AND PETITIONS • (a) CONSIDERATION OF REQUEST FOR DIRECTOR OF ENGINEERING TO ATTEND MINNESOTA PUBLIC WORKS ASSOCIATION SPRING CONFERENCE MAY 15 -17, 1985 3 COUNCIL MINUTES APRIL 9, 1985 0 Following discussion, the motion was made by Alderman Mlinar, sec- onded by Alderman Carls, to approve the request. (b) CONSIDERATION OF REQUEST FOR LIQUOR STORE IMPROVEMENT OF NEW CARPET AND REFINISHING SIDES OF BUILDING After discussion, Alderman Torgerson moved to accept the low bid of Waldo's Floor Service in the amount of $1,154.64 for new carpeting in the liquor store. Motion seconded by Alderman Mlinar and car- ried unanimously. Alderman Mikulecky moved to defer the refinishing of the sides of the building until the next City Council meeting. Alderman Mlinar seconded the motion, and it unanimously carried. (c) CONSIDERATION OF REQUEST FOR PARADE PERMIT FOR ANNUAL MEMORIAL DAY PARADE ON MAY 27, 1985 After discussion, Alderman Carls made the motion to approve and is- sue the parade permit. Motion seconded by Alderman Mikulecky. the motion was amended by Alderman Carls to include waiving the parade permit fee. Alderman Mlinar seconded the amended motion, and it carried unanimously. The motion unanimously carried. (d) CONSIDERATION OF COMMUNICATION REGARDING FLOODING IN AREA OF FIFTH AVENUE SOUTHWEST AND GROVE STREET SOUTH Following discussion, it was moved by Alderman Carls to defer this item until the next Council meeting. Alderman Mlinar seconded the motion, and it carried unanimously. 7. RESOLUTIONS AND ORDINANCES (a) RESOLUTION NO. 8015 - RESOLUTION ACCEPTING $75,000 FROM HUTCHINSON UTILITIES COMMISSION The motion was made by Alderman Mlinar to waive reading and adopt Resolution No. 8015. Motion seconded by Alderman Torgerson and unanimously carried. (b) RESOLUTION NO. 8016 - RESOLUTION OF APPRECIATION TO WESLEY GREVE It was moved by Alderman Mikulecky, seconded by Alderman Torgerson, to waive reading and adopt Resolution No. 8016. Motion carried unanimously. (c) RESOLUTION NO. 8017 - RESOLUTION ACCEPTING PLEDGED SECURITY FROM CITIZENS BANK & TRUST CO. 0 Alderman Carls moved to waive reading and adopt Resolution No. 4 6 COUNCIL MINUTES APRIL 9, 1985 8017. The motion was seconded by Alderman Mlinar and unanimously carried. (d) ORDINANCE NO. 6/85 - ORDINANCE AMENDING SECTION 806 :15 OF THE 1974 ORDINANCE CODE OF THE CITY OF HUTCHINSON, ENTITLED INTOXICATING LIQUOR, ADMINISTRATION The motion was made by Alderman Mlinar, seconded by Alderman Tor- gerson, to waive first reading of Ordinance No. 6/85 and set the second reading for April 23, 1985. Motion carried unanimously. (e) RESOLUTION NO. 8020 - RESOLUTION RELATING TO AN $275,000 COMMERCIAL DEVELOPMENT REVENUE NOTE (LYKE AND GILLARD PROJECT); AUTHORIZING THE ISSUANCE THEREOF PURSUANT TO MINNESOTA STATUTES, CHAPTER 474 It was moved by Alderman Mlinar to waive reading and adopt Resolu- tion No. 8020. The motion was seconded by Alderman Torgerson and unanimously carried. 8. UNFINISHED BUSINESS • (a) CONSIDERATION OF AWARDING BIDS FOR LIBRARY FURNISHINGS Following discussion, Alderman Mlinar moved to approve and award the bids for library furnishings to E. J. Pinske ($79445.00), Metro Systems Furniture ( #7,750.00), DMO Inc. ($25,231.00), and PM John- son's Inc. ($14,245.46). Alderman Mikulecky seconded the motion, and it carried unanimously. 9. NEW BUSINESS (a) CONSIDERATION OF EXTENDING CITY WATERMAIN, STORM SEWER AND SANITARY SEWER TO HUTCHINSON PUBLIC SCHOOL SITE LOCATED SOUTH OF EXISTING HIGH SCHOOL ALONG SCHOOL ROAD The City Engineer presented a report on the area involved. The mo- tion was made by Alderman Torgerson to direct the City Engineer to prepare preliminary cost estimates on the project, including costs that would be assessed to the school, costs deferred, ad valorem taxes, and other pertinent information. The motion was seconded by Alderman Carls and unanimously carried. (b) CONSIDERATION OF ADVERTISING FOR BIDS FOR ROAD OILS AND TV PHOTOGRAPHS OF UNDERGROUND LINES FOR MAINTENANCE After discussion, Alderman Mlinar moved to approve advertising for bids on road oils and TV photographs of underground lines. The mo- tion was seconded by Alderman Torgerson and carried unanimously. COUNCIL MINUTES APRIL 9, 1985 • (c) CONSIDERATION OF AUTHORIZING ADVERTISEMENT FOR BIDS ON PARK TRACTOR Following discussion, the motion was made by Alderman Carls to ad- vertise for bids on a park tractor in time for a bid opening on April 22, 1985 at 2 :00 P.M. and also get a firm estimate on the overhaul cost on the existing John Deere 2020 tractor and the trade -in value of the old tractor. Alderman Mlinar seconded the motion, and it unanimously carried. (d) CONSIDERATION OF REQUEST TO INCREASE POLICE DEPARTMENT CLOTHING ALLOWANCE After discussion, it was moved by Alderman Carls to approve the clothing allowance increase by $50 to $350 per year. Motion sec- onded by Alderman Torgerson and unanimously carried. (e) CONSIDERATION OF GENERAL FUND REIMBURSEMENT City Administrator Plotz explained the fund transfer of $20,000 from the water and sewer fund to the 1984 general fund. Following discussion, Alderman Carls moved to approve the general fund reim- bursement. The motion was seconded by Alderman Mlinar and carried • unanimously. (f) CONSIDERATION OF AUTHORIZING PREPARATION OF PROPOSAL FOR REVOLVING LOAN FUND FROM EXCESS TAX INCREMENTS OF AREAS 1 AND 2 DOWNTOWN AND AREA 3 OF DISTRICT NO. 4 The motion was made by Alderman Torgerson to approve preparation of the revolving loan fund proposal. Alderman Mlinar seconded the mo- tion, and it unanimously carried. (g) CONSIDERATION OF ESTABLISHING JUST COMPENSATION OF PROPERTY OWNED BY MRS. GILBERT BOLDT Following discussion, Alderman Mikulecky moved to contact Consult- ing Engineers Diversified for them to look at the green area site on the map and to contact the MPCA and other authorities if this site is feasible for the wastewater treatment plant for the next Council meeting. Motion seconded by Alderman Torgerson and car- ried unanimously. (h) CONSIDERATION OF ESTABLISHING JUST COMPENSATION OF PROPERTY OWNED BY HENRY "CHRIS" KADELBACH Alderman Mikulecky moved to defer action until the next Council meeting. Alderman Torgerson seconded the motion, and it unani- mously carried. r, COUNCIL MINUTES _ APRIL 9, 1985 0 (i) CONSIDERATION OF ESTABLISHING JUST COMPENSATION OF PROPERTY OWNED BY MR. & MRS. EUGENE SCHIMMEL Alderman Mikulecky moved to defer action until the next Council meeting. Alderman Torgerson seconded the motion, and it carried unanimously. (j) CONSIDERATION OF UTILITIES AND SERVICE ROAD FOR LARRY BETHKE'S MOTEL PROJECT City Engineer Priebe reported that Larry Bethke had 100 percent ownership bf the property to be assessed; therefore, no public hearing would be necessary. Alderman Mlinar moved to approve the project and order the engin- eer's report and to waive reading and adopt Resolution No. 8014. The motion was seconded by Alderman Carls and unanimously carried. (k) CONSIDERATION OF PLANS AND SPECIFICATIONS AND ADVERTISEMENT FOR BIDS ON PROJECT NO. 85 -01 -38 • Following discussion, it was moved by Alderman Torgerson to approve the plans and specifications for project No. 85- 01 -38, to open bids April 30, 1985 at 2 :00 P.M., and to waive reading and adopt Resolu- tion No. 8012. Alderman Mikulecky seconded the motion, and it car- ried unanimously. (1) REVIEW OF MUNICIPAL STATE AID STREET SYSTEM BY CITY ENGINEER The City Engineer presented a report on the municipal state aid street system. Alderman Mlinar moved to approve the recommended changes and to waive reading and adopt Resolutions No. 8018 and No. 8019. The motion was seconded by Alderman Carls and unanimously carried. 10. MISCELLANEOUS (a) COMMUNICATIONS FROM CITY ADMINISTRATOR City Administrator Plotz reported on a meeting held today with officials of Pure Culture Products (Hercules), CED, and city staff. The city was informed that Pure Culture will be reducing its flow into the new wastewater plant by approximately 17 percent, which will affect the proposed size of the structure. A smaller plant will require a change in Phase I of RCM's plan. Also, Pure Culture requested adoption of a resolution at the next Council meeting that would identify the type of funding to be used for the construction • of the new sewage treatment plant. It was reported that the City of New Hope had offered $163,000 IRB 7 COUNCIL MINUTES APRIL 9, 1985 _ • allotment to Hutchinson to meet its commitment for the Frank Fay hotel project. Mr. Plotz commented on the State Planning Association Conference which he and the Mayor had recently attended. One of the seminars addressed the land fill problem with the burning of refuse. It was suggested that the City Council and County Board meet to dis- cuss this mutual concern. On April 4 the City Administrator, City Finance Director and Sena- tor John Bernhagen met with the State Commissioner of Finance to discuss the problem on tax statements where the tax increment is —listed. A different method of listing was recommended. The Coun- cil should meet with the County Board to discuss this issue. (b) COMMUNICATIONS FROM ALDERMAN JOHN MLINAR Alderman Mlinar requested the use of the Hutchmobile on June 16 to transport the public to the airport dedication program and to waive the usual fee. No action was taken, and the item will be put on the Council agenda for April 23. Mr. Mlinar expressed concern about some neighborhoods cluttered up • with various items. (c) COMMUNICATIONS FROM MAYOR ROBERT H. STEARNS Mayor Stearns stated he would like to discuss the function of Region 6 -E with the County Board. (d) COMMUNICATIONS FROM ALDERMAN PAT MIKULECKY Alderman Pat Mikulecky commented on waiving the fee for the recrea- tion facility building permit. He pointed out there is a State surcharge that must be paid. (e) COMMUNICATIONS FROM CITY ATTORNEY JAMES SCHAEFER City Attorney Schaefer explained the procedure for the legal pro- cess of a "public nuisance." It can't just be an eye sore. (f) COMMUNICATIONS FROM DIRECTOR OF ENGINEERING MARLOW V. PRIEBE Engineer Priebe reported that Richard Schmidtbauer had requested consideration of work on Bradford Street for this year's improve- ment projects. The improvement would be assessable to the property owner, and he would have until May 1, 1985 to submit his request to • the Council. It was the consensus of the Council that they would consider the project for this year. 6 • • COUNCIL MINUTES APRIL 9, 1985 11. CLAIMS, APPROPRIATIONS AND CONTRACT PAYMENTS (a) VERIFIED CLAIMS The motion was made by Alderman Carls, seconded by Alderman Mlinar, to approve the claims and authorize payment from the appropriate funds. Motion unanimously carried. 12. ADJOURNMENT There being no further business, the meeting adjourned at 10:22 P.M. 0 0 n U El MINUTES BID OPENING TUESDAY, APRIL 16, 1985 The bid opening was called to order at 2:00 P.M. Present were: City Adminis- trator Gary D. Plotz, Mayor Robert H. Stearns, Architect John Korngiebel, Act- ing Parks and Recreation Director John McRaith, and Administrative Secretary Marilyn Swanson. The reading of Publication No. 3389, Advertisement for Bids, Recreation Facility, was dispensed with. The attached bids were opened and read. The bids were referred to the architect and building committee for review. There being no further business, the meeting adjourned at 2:23 P.M. N nlu TAD - Nb(.;xnATIUN FACILITY - HUTCHINSON, MINNESOTA - "APRIL 16,1985 CONTRACTORS Bid Cal. BASE BID Alt #1 Alt 12 Alt #3 Alt #4 Alt #5 Alt #6 Alt #7 Alt 08 Sec. Days Chem Eaui Chem Eauip Wdq Pool Pool Eauin GL. CM11Q% Sk lite Masonry Electrical M.N.D., Inc. Willmar, Mn. x 280 $1,166,900 2,000 Deduct $6,GOO Deduct $18,300 Deduc $3,650 Deduct $15,900 Deduct $6,000 Dedu t $13,000 Ded $10,000 Add Del's Construction LeSueur, Mn. R 160 1,094,579 2,080 Deduct 6,240 Deduct 19,470 Deduc 3,796 Deduct 15,800 Deduct 13,000 Deduct 11,925 Ded 9,420 Add Kratochvil Construction New Prague, Mn. x 200 1,115,100 2,000 Deduct 6,000 Deduct 18,400 Deduc 3,650 Deduct 30,300 Deduct 7,500 Deduct 1,800 Add 9,700 Add Hasslen Construction Ortonville, Mn. x 180 1,140,000 2,000 Deduct 6,350 Deduct 22,000 Deduc 3,850 Deduct 12,000 Deduct 13,000 Deduct 21,000 Ded 9,500 Add Gopher State Contractor Rice, Mn. Miller,Miller 6 Mac Hutchinson, Mn. x 0/15 1,097,800 2,000 Deduct 6,000 Deduct 19,420 Deduc 3,650 Deduct 13,059 Deduct 12,135 Deduct 17,300 Ded 9,200 Add Lester's of Minnesota Lester Praire, Mn. Building Constructors Minnetonka, Mn. R 210 1,158,300 2,000 Deduct 6,000 Deduct 19,000 Deduc 3,700 Deduct 13,000 Deduqt 10,370 Deduct 29,000 Ded None Raske Bldg. Systems Cosmos, Mn. Terwisscha Construction Willmar, Mn. R 210 1,086,000 2,100 Deduct 6,400 Deduct 21,500 Deduc 4,000 Deduct 12,400 Deduct 7,700 Deduct 4,300 Ded. None Lau Construction St. Cloud, Mn. Associated Builders Bismarck, ND x 220 1,148,367 None 3,535 Deduct 14,831 Deduc 3,535 Deduct 30,625 Deduct 6,536 Dedu t 3,078 Add 9,163 Add HMH Enterprises Watertown, Mn. Salonek, Inc. Springfield, Mn. E.J. Pinske Bldrs. .Gaylord. Mn. Y 195 1,072,500 2,000 Deduct 6,000 Deduct 16,500 Deduci 3,650 Deduct 30,000 Deduct 12,500 Deduct 13,750 Ded 9,400 Add Marcus Construction Co. Prinsburg, Mn. MARCH CITY OF HUTCHINSON FINANCIAL REPORT - 1985 MARCH REVENUE REPORT - GENERAL FUND CURRENT YEAR TO ADOPTED BALANCE PERCENTAGE 0 MARCH DATE ACTUAL BUDGET REMAINING USED TAXES 0.00 18544.83 1233985.00 1215440.17 0.02 LICENSES 7175.00 7407.00 17000.00 9593.00 0.44 PERMITS AND FEES 4308.01 8940.04 45700.00 36759.96 0.20 INTER - GOVERNMENT REVENUE 4605.86 20138.36 903321.00 883182.64 0.02 CHARGES FOR SERVICES 18552.64 55818.98 374345.00 318526.02 0.15 FINES & FORFEITS 2173.50 6969.50 23000.00 16030.50 0.30 MISCELLANEOUS REVENUE 21248.36 44771.84 182384.00 137612.16 0.25 CONTRIBUTIONS FROM OTHER FUNDS 75000.00 75000.00 479000.00 404000.00 0.16 REVENUE FOR OTHER AGENCIES - 118.68 21.61 300.00 278.39 0.07 TOTAL 132944.69 237612.16 3259035.00 3021422.84 0.07 EXPENSE REPORT GENERAL FUND MAYOR & COUNCIL 1629.77 5616.67 27960.00 22343.33 0.20 CITY ADM. /CITY CLERK 9288.74 33407.19 113827.00 80419.81 0.29 ELECTIONS 0.00 0.00 9346.00 9346.00 0.00 FINANCE 11063.45 42798.33 179404.00 136605.67 0.24 MOTOR VEHICLE 4482.82 16888.50 62394.00 45505.50 0.27 ASSESSING 0.00 0.00 19672.00 19672.00 0.00 L 2326.77 8572.99 41618.00 33045.01 0.21 PLL#ING 10.15 821.19 26475.00 25653.81 0.03 CITY HALL 2844.30 10259.84 40503.00 30243.16 0.25 POLICE DEPARTMENT 51072.96 174521.22 674104.00 499582.78 0.26 FIRE DEPARTMENT 6553.36 17917.09 109938.00 92020.91 0.16 COMMUNITY SERVICE OFFICER 2791.31 8327.73 32485.00 24157.27 0.26 PROTECTIVE INSPECTIONS 5214.26 19953.79 70054.00 50100.21 0.28 CIVIL DEFENSE 45.00 145.85 1175.00 1029.15 0.12 SAFETY COUNCIL 0.00 0.00 150.00 150.00 0.00 FIRE MARSHALL 2821.55 10079.59 38118.00 28038.41 0.26 ENGINEERING 11285.60 46910.13 162424.00 115513.87 0.29 STREETS & ALLEYS 25276.80 76135.97 345215.00 269079.03 0.22 STREET MAINTENANCE A/C 4677.39 16082.18 68825.00 52742.82 0.23 LIBRARY 1428.28 17319.00 62314.00 44995.00 0.28 SENIOR CITIZEN CENTER 3269.11 11792.85 36052.00 24259.15 0.33 PARK /REC. ADMIN. 1543.14 14332.15 71260.00 56927.85 0.20 RECREATION 4794.47 21221.98 91763.00 70541.02 0.23 CIVIC ARENA 11238.96 40959.60 108007.00 67047.40 0.38 PARK DEPARTMENT 21443.26 76518.30 330500.00 253981.70 0.23 RECREATION BUILDING 0.00 0.00 13728.00 13728.00 0.00 CEMETERY 2458.93 7671.53 39994.00 32322.47 0.19 COMMUNITY DEVELOPMENT 2620.49 7112.67 32550.00 25437.33 0.22 LAWCON 2538.11 55950.99 17125.00 - 38825.99 3.27 DEBT SERVICE 0.00 13550.00 45946.00 32396.00 0.29 AIRPORT 959.32 15555.44 60925.00 45369.56 0.26 TR SIT 6206.08 18222.39 78684.00 60461.61 0.23 U1 OCATED 2098.08 5586.91 246500.00 240911.09 0.02 TOTAL 201982.46 794234.07 3259035.00 2464800.93 0.24 �- Vie. <2) MARCH CITY OF HUTCHINSON FINANCIAL REPORT - 1985 MARCH 0.00 - 3207.00 ENTERPRISE FUNDS 37969.48 103366.78 460000.00 356633.22 REVENUE REPORT - LIQUOR FUND CURRENT YEAR TO ADOPTED BALANCE PERCENTAGE 0.17 REFUSE SERVICES MARCH DATE ACTUAL BUDGET REMAINING USED SEWER SERVICES LIQUOR SALES 29446.21 85857.71 410000.00 324142.29 0.21 721.16 WINE SALES 8214.73 23982.74 125000.00 101017.26 0.19 5357.15 BEER SALES 43836.74 114573.73 590000.00 475426.27 0.19 2000.00 BEER DEPOSITS 91.11 - 152.38 0.00 152.38 2500.00 1914.90 MISC. SALES 1864.32 4669.14 0.00 - 4669.14 1034391.75 0.24 INTEREST 336.76 973.80 CASH DISCOUNTS -68.39 - 239.47 0.00 239.47 TOTAL 83721.48 229665.27 1125000.00 895334.73 0.20 EXPENSE REPORT LIQUOR FUND PERSONEL SERVICES 13631.43 37523.94 125344.00 87820.06 0.30 SUPPLIES, REPAIR & MAINTENANCE 427.83 961.32 4700.00 3738.68 0.20 OTHER SERVICES & CHARGES 767.76 3122.36 29000.00 25877.64 0.11 MISCELLANEOUS 19.00 292.00 9050.00 8758.00 0.03 CAPITAL OUTLAY 0.00 0.00 13700.00 13700.00 0.00 DEBT SERVICE 0.00 0.00 5110.00 5110.00 0.00 TRANSFERS 0.00 0.00 110000.00 110000.00 0.00 COST OF SALES 81003.04 255965.38 831050.00 575084.62 0.31 OTHER 0.00 0.00 16300.00 16300.00 0.00 • TOTAL 95849.06 297865.00 1144254.00 846389.00 0.26 REVENUE REPORT - WATER SEWER /FUND FEDERAL GRANTS 2373.00 3207.00 0.00 - 3207.00 0.00 WATER SALES 37969.48 103366.78 460000.00 356633.22 0.22 WATER METER SALES 554.00 848.00 5000.00 4152.00 0.17 REFUSE SERVICES 23719.67 64575.87 236000.00 171424.13 0.27 SEWER SERVICES 52813.71 140685.32 615000.00 474314.68 0.23 PENALTY CHARGES 721.16 1783.03 6300.00 4516.97 0.00 INTEREST EARNED 0.00 5357.15 28000.00 22642.85 0.19 REFUNDS & REIMBURSEMENTS 0.00 0.00 2000.00 2000.00 0.00 OTHER 423.10 585.10 2500.00 1914.90 0.23 TOTAL 118574.12 320408.25 1354800.00 1034391.75 0.24 EXPENSE REPORT - WATER SEWER /FUND OPERATIONS 43708.33 64977.58 2380o0.o0 173022.42 0.27 WATER 38907.60 68927.93 1072128.00 1003200.07 0.06 SEWER 82294.06 134056.65 620142.00 486085.35 0.22 Is TOTAL 164909.99 267962.16 1930270.00 1662307.84 0.14 MINUTES HUTCHINSON PLANNING COMMISSION 46 TUESDAY, MARCH 19, 1985 1. CALL TO ORDER The regular meeting of the Hutchinson Planning Commission was called to order by Chairman Roland Ebent at 7 :30 p.m., with the following members present: Marlin Torgerson, Elsa Young, Don Erickson, Tom Lyke, Shu -Mei Hwang, and Chairman Ebent. Members absent: Larry Romo. Also present: City Administrator Gary D. Plotz and City Attorney James Schaefer. 2. MINUTES The minutes of the regular meeting, dated Monday, February 18, 1985, were approved as presented upon a motion by Mr. Erickson. Seconded by Mr. Hwang, the motion carried unanimously. 3. PUBLIC HEARING (a) CONSIDERATION OF VARIANCE REQUEST AS SUBMITTED BY HAROLD JUUL Chairman Ebent opened the public hearing at 7:30 p.m. with the reading of publication $3392 as published in the Hutchinson . Leader on Thursday, March 7, 1985. The request is for a variance to allow the construction of a duplex on a lot that has 8,712 square feet. The zoning ordinance requires 10,000 square feet for a duplex in an R -2 zone. City Administrator Plotz explained that the staff had recommended that the request be rejected on the basis that a single family home could be built on the lot and there was no hardship to the owner shown. Mr. Robert Evans, of 516 Main Street South was present to state he objected to the development of the lot because of the water problems it would cause for neighboring property owners. He further explained the existing water problem for his neighbor, Mrs. Dorothy Braun of 526 Main Street South, and himself. Mr. Ebent explained that the question before the Planning Commission was whether or not the proposed duplex would fit on the lot. The drainage question would be addressed for any building proposed for the lot when the building and drainage plans were submitted to the building official. Mr. Torgerson read from the State Planning Act, noting that a variance cannot be granted unless undue hardship is shown. In his opinion, hardship to the property owner has not been shown. Dr. Lyke commented that a hardship cannot be created by the . purchase of the property. Mr. Erickson noted that this was not a unique situation to the property in question. Mrs. Young noted that the property could be used for a single family -Q,62- dwelling with no problem. After discussion, Mrs. Young made a motion to close the hearing. Seconded by Mr. Hwang, the motion carried unanimously and the hearing was closed. Mr. Erickson made a motion to recommend to City Council to deny the request as submitted, based on the fact that the conditions for granting a variance as detailed in Section 6.05 C of Zoning Ordinance #464, had not been met. Seconded by Mr. Hwang, the motion carried unanimously. D. OLD BUSINESS (a) DISCUSSION REGARDING SITE PLAN REQUIREMENTS FOR REZONING City Administrator Plotz explained that at the last meeting a formal presentation regarding site plan requirements and alternatives to them was given by Mr. Gunnar Isberg. The Planning Coo ,zission felt they wanted to review the options another month before making a recommendation regarding site plan requirements. Mr. Plotz further explained that at the Minnesota Conference of Planners coming March 31 - April 2, site plan requirements would be a topic of discussion. He encouraged the Planning Commission members to attend, if possible, and suggested that a recommendation be postponed until after the conference to allow members and the City Council members to have as much information regarding it as possible. After discussion, Mr. Torgerson made a motion to • continue discussion of site plan requirements until the next meeting. Seconded by Dr. Lyke, the motion carried unanimously. (b) CONSIDERATION OF CQMPREHENSIVE PLAN City Administrator Plotz explained that a priority of the City Council for 1985 was to review the Map that shows the long range planning for the City. He suggested that the Planning Commission review the Comprehensive Plan Map at the next regular meeting of the Planning Commission, when the City Engineer is present. It was the consensus of the Planning Commission that the map be reviewed at the next regular meeting. 5. NEW BUSINESS (a) DISCUSSION OF LIGHTING FOR LIBRARY SQUARE PARK Mr. Erickson stated that with the expansion of the library and the focus on Library Square as the "city square", he would like to have perimeter lighting for Library Square considered. Discussion followed. Mr. Erickson made a motion to recommend that the Park Board and the Library Board get together to investigate the feasibility of lighting around Library Square Park. Seconded by Mr. Torgerson, the motion carried unanimously. E (b) PRESENTATION BY KEN GRUENHAGEN Mr. Ken Gruenhagen was present representing a GH & S project in apartment development. They are planning a 24 unit apartment building to be located on the corner lot of South Grade Road and Merrill Street. The lot has 45,000 square feet and is zoned R -3. They have made application with the Minnesota Finance Agency. The apartments will not be subsidized - will be of the deluxe variety -- the majority being two - bedroom units with rent starting at $400 per month. Mr. Gruenhagen explained that his reason for being before the Planning Commission is that in the final stages of approval by the MFA, the only remaining requirements are letters from the Building Official and Fire Marshal stating the proposal meets the City codes. Today, the building official had informed Mr. Gruenhagen that the project did not meet the zoning ordinance, as the requirements are 2200 square feet per unit and a 30' setback. When the plans were done in July, they met City specifications - f800 square Teet per unit, 25' front setbacks. However, the City amended the ordinance in September. The developers were unaware of the ordinance change. To continue with the project as planned, a variance to allow the 1800 square feet and the 25' setback would be necessary. Mr. Gruenhagen further explained that the problem lies in the financing. To qualify for the financing they are requesting, • the land cost per building unit cannot be more than $3,000. They have already purchased the land, so that price is fixed. By meeting the 2200 square feet requirement, the number of units would have to be reduced to 20, which would make the land cost per unit $3600. Discussion followed. The question of hardship, uniqueness to the property and whether or not granting the variance would changed the character of the neighborhood were raised. After discussion, Mr. Hwang stated that he felt the 30' setback could be met, so a variance for that would not be necessary. He further stated he would not be in favor of the variance to allow 1800 square feet per dwelling unit, as the property could be put to other use. Dr. Lyke stated that he would not be in favor of a variance for the square footage. Mr. Erickson state:' that he went along with Mr. Hwang and Dr. Lyke. Mr. Torgerson stated he, too, would have to object at this time. Mr. Ebent stated that he felt that when an ordinance changed, developers and builders should be notified. It was his opinion that as the plans were begun before the ordinance was changed, and due to the time and expense involved with new plans and reapplication for financing, the variance should be granted. Chairman Ebent stated that it was the consenus of the Planning Commission., that at this time, a variance to reduce square • footage requirement per unit would be denied. 6. ADJOURNMENT There being no further business, Mr. Torgerson made a motion to adjourn the meeting at 8:35 p.m. Seconded by Mrs. Young, the motion carried unanimously and the meeting was adjourned. HUTCHINSON COMMUNITY HOSPITAL REGULAR BOARD OF DIRECTORS MEETING - - - March 19, 1985 Large Conference Room - 5:15 PM Present: Rev. Thor Skeie, President; Joan Ewald, Vice President; Rolly Balke, Secretary; Bob Durfee, Trustee; Mike Carls, Trustee; Norah Mullan, Trustee; Dr. Bill O'Brien, Chief of Staff Absent: None Others Present: Philip G. Graves, Administrator; Willard H. Rosenow, Assistant Administrator; Jane Lien, Director of Nursing Services; Kathleen Ogren, Hutchinson Leader; Laurie Hulkonen, Recording Secretary Prior to the meeting, the board heard Ken Jensen, president of the Hutchinson Community Hospital Foundation, Inc., give a brief ri story of the foundation board's work thus far. Plans for the near future include newspaper publicity; a mass mailing to targeted citizens; visits to service clubs to inform them of the foundation's purpose; and mailing of brochures to specific professional groups who are involved in estate planning. Jensen also gave a breakdown of costs incurred in promoting the foundation and thanked the board again for their loan-of funds to cover start -up costs. • The meeting was called to order by President Skeie at 6:15 PM. Minutes of Past Meetings. The minutes of the February 11 joint medical staff and board meeting and the February 19 regular board meeting were presented. The board asked that the second section in section A under "Other" be ended after the word "Hutchinson" and the remainder of the sentence be stricken from the February 19 minutes. Following discussion: Motion was made by Carls, seconded by Ewald, to approve the minutes of the February 11 joint medical staff and board meeting as presented and approve the minutes of the February 19 regular board meeting as amended. All were in favor. Motion carried. Medical Staff Meeting Minutes. Dr. O'Brien presented the medical staff meeting minutes. Discussion centered on a recently received denial of necessity of admission on a patient hospitalized in November. Old Business A. Trustee Replacement. Replacement of Norah Mullan's position on the board was discussed. Graves was asked whether the city policy of publishing notice of the board vacancy had been followed, and he relayed that he had notified the city administrator several weeks ago of the pending opening, and he assumed the notice had been printed. • Skeie opened the floor to nominations: -C1 (31 Regular Board of Directors Meeting - March 19, 1985 Page Two (A.) 1. Dori Johnson was nominated by Balke, seconded by Carls. 2. Ruth Westlund was nominated by Mullan, seconded by Carls. 3. June Knutson was nominated by Ewald, seconded by Carls. • 4. Pat Bonniwell (Dassel) was nominated by Mullan, seconded by Skeie. Following discussion: Motion was made by O'Brien, seconded by Durfee, to recommend the following candidates to the mayor, in order of preference, for replacement as trustee on the Hutchinson Community Hospital Board of Directors: 1. Dori Johnson 2. Ruth Westlund 3. June Knutson 4. Pat Bonniwell (Dassel) The vote was six in favor, with Ewald opposed. Motion carried. Board expansion was discussed. The matter was tabled until the next board meeting. B. PPO's. Graves updated the board on the meeting between Drs. Gordon of Hutchinson and Smyth of Glencoe to discuss PPO's. The decision had been made not to go with a senior program due to the changes involved in reorganizing into our own insurance company. No decision had been made on which PPO to go with, although the preference leaned toward Select Care. • New Business A. CT Service. Graves told the board about two firms which had expressed interest in servicing Hutchinson. Shared Imaging of Chaska is a new business that will dedicate a unit to Hutchinson, Waconia, Glencoe and New Ulm. Diagnostic Imaging of Forest Lake would send a unit that is already servicing 11 other hospitals. The hospital tracked CT procedures that are currently going out of town, and Graves speculated that the hospital could use the service two days per week. Graves also relayed that the Cambridge Hospital, which is currently using Diagnostic Imaging, is looking for another service due to questions they had about the fees charged. Price lists from both services were circulated. Patients will be seen out of the purchasing entrance at present, but a permanent site for CT patients to access the machines is being studied. Two radiologists have contacted the hopsital to say they would come here to read the CT scans. Concern was that a physician (radiologist) be present for the patient in case there are reactions to the contrast media. Following discussion: Motion was made by Balke, seconded by Durfee, to hire Shared Imaging • of Chaska and authorize the administrator to negotiate an arrangement suitable to the hospital's needs. All were in favor. Motion carried. Regular Board of Directors Meeting - March 19, 1985 Page Three B. Birthing Bed. The capital expenditure request from the Nursing Department for the purchase of a birthing bed was discussed. It was noted that funds from the Auxiliary will be used to purchase the bed. Following discussion: Motion was made by Carls, seconded by Durfee, to approve the capital expenditure request for purchase of a birthing bed, to be financed by Auxiliary funds, at a cost not to exceed $7,000. All were in favor. Motion carried. C. PT Department in Dassel. The board discussed providing PT services to the Dassel Lakeside Nursing Home. Providing services would be beneficial to the hospital because it would help defray costs of another physical therapist and establish our presence in Dassel (should the hospital and medical center decide to establish a satellite office there). Question was asked about PT services at Burns Manor Nursing Home and why the hospital was not involved there. The nursing home presently has an exercise person who exercises patients, but they have not inquired about ` PT services in- house. Graves told the board he would have an arrangement drawn up between now and the next meeting for PT services at Dassel and bring it to the next meeting for board review. D. Ultrasound Update. Graves updated the board on the ultrasound training scheduled for Jacki Rossi, to be paid by the hospital. The board agreed • that any efforts to specially educate hospital employees should be done when beneficial to the hospital. E. Trustee Conference. The upcoming Minnesota Hospital Trustee Conference was discussed. As many trustees as are able to go were encouraged to attend. Trustees will be leaving the lobby between 12:30 and 1:00 PM on May 8 to drive together to the conference. The administration office will be calling each trustee to learn who will be attending, and registration will then be sent in. F. Joint Meeting Discussion. Graves reminded the board of the committee assignments made at the last joint board /medical staff meeting on March 11. He told the group he was meeting with Bob Thompson on March 25 to get the committees moving. It was noted that participation was good from both the medical staff and board at that joint meeting. Graves reported that Dr. Fleugel had approached him abouta joint venture between Fluegel and the hospital in bringing another psychiatrist to the city. Fluegel is willing to guarantee half the salary if the hospital is willing to guarantee half. Graves will put this on the agenda for the next month's meeting as he thinks its worthwhile to pursue. Statistical Report. Graves presented the statistical report. The month of February showed a 43`k occupancy, which was slightly improved over the 40 •for the previous month. Med /Surg areas are doing "okay ", and Surgery and outpatient services are doing very well. Regular Board of Directors Meeting - March 19, 1985 Page Four Accounts Payable. Motion was made by Ewald, seconded by Mullan, to approve for payment the attached listing of accounts payable and cash disbursements in the amount of $380,029.69. All were in favor. Motion carried. • Financial Statements. The statements were presented by Graves. The hospital realized a $10,000 gain for the month after funding price level depreciation and working capital requirements. Major reason for the gain was discounts and allowances. The board commented on the good management of staff hours. Departmental Reports. A. Director of Nursing Services. The report was presented. No unusual comments were made. B. Education Coordinator. The report was presented. No unusual comments were made. C. Dietitian. The report was presented. No unusual comments were made. Patient Satisfaction Surveys. Surveys received since the last meeting were reviewed. No unusual comments were made. Other A. MAHA's Thank You to Graves. The board acknowledged the thank you letter received by the administrator after his participation in the annual long term care conference. B. OB Renovation. The renovation project in OB was briefly discussed. Graves told the board that work on the project will commence as soon as all materials are on site. He estimated that the work itself would take four weeks after that before completion. C. Appreciation Dinner for Norah Mullan. The board discussed scheduling an appreciation dinner for Norah Mullan, who is retiring after ten years on the hospital board. The dinner was scheduled for Thursday, April 11, at 6:00 PM at the Velvet Coach. The executive secretary will call to remind the trustees of the dinner. Adjournment. Motion was made by Carls to adjourn the meeting. The meeting was adjourned at 9:00 PM by President Skeie. Respectfully submitted, Laurie Hulkonen Rolly Balke Recording Secretary Secretary LH n L� HUTCHD1SCU COW NITY HOSPITAL BUDGET 0:kTARISCNS - NATURAL CATEGORIES For Three Months Ended March 31, 1985 YEAR- TG~DATE PATIENT REVENUE ACTUAL BLDGET VARIANCE Daily Hospital Service $144,580 $186,926 $(42,346) Medical Nursing Units 47,088 27,803 19,285 Mental Health Unit 257,952 293,049 (35,097) Ancillary $4499620 $507,778 $(58,158) Gross Patient Revenue (4;036 (17,151) 13,115 Less: Discounts & Allowances $445,584 $490,627 $(45,043) Net Patient Revenue 11,601 9,519 2,082 Other Operating Revenue $661,232 $731,919 $19285,987 $457,185 $500,146 $(42,961) Total operating Revenue $412,358 $527,240 $(114,882) 105,186 101.311 3,875 777,663 821,247 (43,584) $1,295,207 $19449,798 $(154,591) (9,220) (51,455) 42,235 Salaries $661,232 $731,919 $19285,987 $lo398,343 $(112,356) 33,406 J x28,557) 41849 131,309 (13,330) 27,104 $1,319,393 $1,426,900 $(1071507) $234,128 $235,975 $(1,847) Salaries $661,232 $731,919 $(70,687) 403495 42,394 (1,899) Eiiployee Benefits 117,979 131,309 (13,330) 27,104 21,228 5,876 Medical & Other Fees 63,215 54,818 8,397 6,140 8,906 (2,766) Raw Food 22,181 25,649 (3,468) 11 &8 12,154 (1,086) Drugs 29,906 39,368 (9,462) 43,,,06 42,702 364 Medical & Other Supplies 130,632 122,092 8,540 17,296 17,605 (309) Utilities 519512 52,814 (1,302) 49578 6,385 (1,807) Building & Eguipment Repairs 149380 18,647 (49267) 1,596 1,696 (100) Rental Else 4,383 7,456 (3,073) 4,667 41471 196 Insurance 13,996 13,712 284 1,460 1,483 (23) Interest 4,774 4,449 325 17,830 19,281 (1,451) Depreciation 54,674 57,845 (3,171) 7,056 10,207 (3,151) Other Expenses 29,311 36,451 (7,140) $416,484 5424,487 $(8,003) Total Operating Expense $1,198,175 $1,296,529 $(98,354) 40,701 75,659 (34,958) Operating Inoue 121,218 130,371 (9,153) Add (Deduct) Non - Operating Revenue (Expense) Price -Level Depreciation (20,812) (20,812) - -- And Working Capital (62,436) (62,436) - -- $19,889 $54,847 5(34,958) Excess Revenues over ]Expenses $58,782 $67,935 $(9,153) r1 U 16 RESOLUTION NO. 8025 CITY OF HUTCHINSON RESOLUTION FOR PURCHASE The Hutchinson City Council authorizes the purchase of the following: ITEM COST PURPOSE DEPT. BUDGET VENDOR Bases & Softballs 3810.97 Summer Recreation Program Rec. Yes Kokesh Athletic Diesel Ill Oil 1858.00 Street Equipment Use Street Yes Schmeling Oil Painter Stripper 2490.00 Street Marking Equipment Street Yes Decker Supply Co. 5,000 Yrds. Crushed 8950.00 Street Use Bonds Yes Wm. Mueller & Sons Gravel of '84 The following items were authorized due to an emergency need: ITEM Date Approved: Motion made by: Seconded by: COST April 23, 1985 PURPOSE DEPT. I BUDGET I VENDOR Resolution submitted for Council action by: r 0 Mumr-uzV l .' MI ➢Lr.apojw ... .. .. ..... .... ... ...... 6tate of j"Ttinutgotal ............City of ........... . .......Hutchinson .... I .............................................. .. . County of ......... McLeod ....... ....... .4 location No... ................. ........... ............. Application for License to Sell Cigarettes at Retail The undersigned resident...... of the ........... ...... City Hutchinson ......... I ............. ...... ....... Of ......... in the county of.........__.. McLeod. ­ .............. State of Minnesota, HEREBY M.4KE .. APPLIC.1- TIOX FOR LICENSE to be issued to. ...... -C.ity of Hutchinson - Parks & Recreation. Dept. .... ­­­ ............ I ........................... ......... ....... ..... ............. I ............................ sell cigarettes and cilarette papers and wrappers at retail at .................. ....................................... ...... Roberts Park Concession . Stand .......... ................. ......................................... ........... ...... ...... ........... ­ ....... . ................... in the City , Hutchinson I ....... . .. . ........ of ....... . .. .. . ... . ............................ in said county and state for the term of .... .. 5mo9.th..s ........ ... ...... I .. ..... ........... beginning with the......._ _.......day of . .......... M.4y­­.... ­ 19 85 , subject to the laws of the State, of Minnesota and the ordinances and regulations of said City Hutchinson ............. .. I ......................................... of ........... ............... ......... .................. .......... ....... pertaining thereto, and herewith deposit $ -0- .... ......... ...In payment of the fee therefor. April 18 ................................... I ......... ......... I . ....... Dated ...... I.... ......................................... A7��= /0 • (612) 587 -5151 f1UTlH' CITY OF HUTCHINSON - 37 WASHING TON AV' -NUE WEST / HUTCHINSON, MILAN. 55350 M E M O R A N D U M DATE: April 19, 1985 T0: —Mayor & Council — --------- — — — — — — — — — — — — — — — — — — — FROM: Gary Plotz, City Administator SUBJECT: Review of Rehabilitation of Hutch Hotel — ---------------------- — — — — — — — Review by County Board, School Board and Planning Commission The tax increment amendment, as required pursuant to statutes has been reviewed by each of the above entities. This has been verified by communications in the Council packet. • Review by our Financial Consultant Mr. William Fahey of Ehlers and Associates worked with the City's bond counsels. Attorney Gilligan has provided the amendment to the tax increment financing plan. The advertisement for amending the tax in- crement financing allows financing up to $285,000.(See attached.) Mr. Fahey will be at the meeting to review the amendment. (Amendment enclosed.) The actual proposed tax increment financing is less than the amount ad- vertised for. Review by City's Bond Counsel - Dorsey, Whitney -Tax Increment The opinion on the tax increment legalities is to be presented in the April 17, 1985, correspondence (enclosed). Review of Project by McLeod County Assessor Based on information submitted to the County Assessor by Frank Fay, County Assessor Tony Victorian issued the January 8, 1985 tax estimates. As of April 17, 1985, Frank Fay has advised me there is no change in the size and scope of the project since this letter was issued. Review of IRB's and Housing Bonds - Holmes & Graven is Frank Fay has employed the services of Holmes & Graven as bond counsel on the IRB ($500,000) ind Housing Revenue Bond ($600,000). Attorney Stefanie Galey of Holmes and Graven will be present to review the doc- uments on the IRB's and Housing Revenue Bonds at the meeting. Review /Rehabilitation Hutch Hotel April 19, 1985 Page 2 Review of the Project by the Community Development Corporation (CDC) The Community Development Corporation will be represented at the Council meeting by John Bernhagen. He will comment on the CDC review (correspondence enclosed). Review of Housing Aspects of Project by Housing Authority Enclosed is a copy of the minutes of the Hutchinson Housing Authority dated January 16, 1985. It is also noted that on April 3, Carol Haukos responded to items raised by James DeMeyer submitted at the Council meeting of March 26, 1985 (see enclosed). I have been advised by Frank Fay that the Housing Authority will be represented at the Council meeting of April 23, 1985. Review by City Attorney On April 12, I forwarded the following documents to Attorney James Schaefer, Frank Fay, County Assessor Tony Victorian and County Attorney Pete Kasal (see attached memo). 1) Contract for sale of land for private development • 2) Assessment Agreement These documents were prepared by Jerry Gilligan of the Dorsey Law Firm. The City Attorney has been in contact with the county in regards to these documents. Review by City Accountant on Status of Tax Increment Fund A review of the present status of the tax increment funds and the parking bonds has been completed (enclosed in packet). Review of Project by Charles Bailly & Company Attached is an April 17, 1985 review of the project by Mr. Charles Rolando of Charles Bailly and Company. Please review. Within the "conclusion" portion of the report, the following items are being verified prior to Tuesday, April 23. Items: ill Documentation of lease commitments #2 Submission to auditor of existing indebtedness #3 Refinement of the pro -forma statement in regard to the "relationship of the interest and principal pay -off to the increment in property taxes." • #4 Inclusion of Community Development fees in the auditor's review of the pro -forma statement Review /Rehabilitation Hutch Hotel April 19, 1985 Page 3 Additional Items #1 Frank Fay has indicated no probelms in having both partners sign the 1) contract for sale of land for private development, and 2) assess- ment agreement. #2 Frank is communicating with the Housing Authority. The Housing Authority will be represented at the meeting. #3 Frank stated the partners will comply with the requirement. Lastly, Chuck Rolando will verify in writing if items #1 - X14 have been complied with by April 23. Review by Other Communities for $163,000 of IRB Monies Enclosed in the packet is the notification that we have received an allocation from Beltrami County. • cc: Frank Fay Bill Fahev Ken Merrill James Schefer Jerry Gilligan Stafanie Galey Tony Victorian Pete Kasal John Bernhagen Ron McGraw Carol Haukos Chuck Rolando • (612) 587 -5151 HUTCH CITY CF HUTCHINSON 37 WASHINGTON AVENUE WEST HUTCHINSON, MINN. 55350 February 19, 1985 Arty. Stefanie Galey Holmes & Graven 470 Pillsbury Center Minneapolis, MN 55402 Dear Atty. Galey: Enclosed are copies of the following documents regarding DeMeyer vs. City of Hutchinson: 1. Stipulation of Dismissal i 2. Stipulation of Settlement Also enclosed are copies of the documents and resolutions adopted to fulfill the City of Hutchinson's obligations under the Stipulation of Settlement: 1. Warranty Deed to Emmet McCormick 2. Warranty Deed to Citizens Bank & Trust 3. Warranty Deed to S & L Rehab 4. Resolution No. 7713 5. Resolution No. 7714 6. Resolution No. 7715 These documents should show that any issue which Mr. DeMeyer has raised con- cerning the validity of tax increment financing has now been settled. Sincerely, CITY OF HUTCH IN ©N / r Marilyn Swanson . Administrative Secretary Encls. IRST NATIONAL-SOO LINE CONCOURSE 507 MARQUETTE AVE February 26, 1985 Mayor and City Council City of Hutchinson City Hall Hutchinson, Minnesota EHLERS AND ASSOCIATES, INC. FINANCIAL SPECIALISTS MINNEAPOLIS, MINNESOTA 55402 339 -8291 (AREA CODE 612) RE: Tax Increment Amendment for Rehabilitation of Hutchinson Hotel Attached is the amendment to the tax increment program to accomplish the rehabilitation of the Hutchinson Hotel. I recommend the City Council hear evidence and testimony on February 26, 1985 and continue the Hearing to March 26, 1985. At that time, the Council will hold hearings on the Housing Bonds and the Industrial Development Revenue Bonds. It is my opinion the City Council should consider the tax increment issue only after full and complete representations on Housing and IDB bonds • are made. The City has shown its willingness to participate in the project and therefore need not take any further action until after the Housing and IDB bond matters have been decided. If the project receives favorable consideration in March, the Council will take action on findings and the amendment to the Tax Increment Plan and Program. Very truly yours, EHLERS AND ASSOCIATES, INC. lliam E. Fahey First Vice President WEF:nel PUBLISHED IN THE HUTCHINSON LEADER THURSDAY, FEBRUARY 7, 1985 THURSDAY, FEBRUARY 14, 1985 PUBLICATION NO. 3376 NOTICE OF PUBLIC HEARING REGARDING THE MODIFICATION OF THE EXISTING TAX INCRMEENT FINANCING PLAN FOR DEVELOPMENT DISTRICT #4 PURSUANT TO MINNESOTA STATUTES, SECTIONS 273.71 TO 273.78 CLAN U� THE CITY OF HUTCHINSON, MINNESOTA NOTICE IS HEREBY GIVEN that the governing body of the City of Hutchinson, Minnesota (the "City"), will meet on February 26, 1985, at 8:00 p.m. at the City offices in Hutchinson, Minnesota, for the purpose of conducting a public hearing on a proposal to modify the existing Tax Increment Financing Plan for Development District #4 in accordance with the Minnesota Tax Increment Financing Act, Minnesota Statutes, Sections 273.71 to 273.78 inclusive. The governing body will consider the modification of the tax increment financing plan to provide for the acquisition of the following parcel: Lot 1, North 18 feet of Lot 2, Block 8, South half of the City of Hutchinson, County of McCloud. The Plan is also modified for the purpose of allowing for $285,000 additional bonded indebtedness. All persons interested may appear and be heard at the time and place set forth above. Dated: January 24 1985 BY ORDER OF THE CITY COUNCIL OF THE CITY OF HUTCHINSON By ALU City Adlniriktrator r� U Ll • AMENDMENT TO THE DEVELOPMENT PROGRAM AND THE TAX INCREMENT FINANCING PLAN FOR DEVELOPMENT DISTRICT NO. 4 OF THE CITY OF HUTCHINSON, MINNESOTA • Section 1. Recitals. The Hutchinson City Council, by resolution adopted October 14, 1980, designated a development district pursuant to Minnesota Statutes, Chapter 472A and a tax increment financing district pursuant to Minnesota Statutes, Sections 273.71 through 273.78. Both the development district and the tax increment financing district have been designated Development District No. 4 (the District). The Hutchinson City Council has previously approved a Tax Increment Financing Plan for the District (the Original Plan). By Resolution No. 73.40, adopted by the Hutchinson City Council on May 25, 1982, the Hutchinson City Council approved an amendment to the Plan (the 1982 Amendment). The Original Plan, as amended by the 1982 Amendment is hereinafter referred to as the Plan. Located within the District at the southwest corner of Main Street and Washington Avenue is the Hutchinson Hotel (the Hutchinson Hotel). It has been proposed that the Plan be amended to provide for the acquisition of the Hutchinson Hotel by the City and the sale thereof to a developer designated by the City at a reduced cost pursuant to a development agreement under which the developer agrees to renovate and rehabilitate the Hutchinson Hotel for commercial and residential use (the Project). The City's cost of the Project is estimated to be as follows: Land Acquisition Cost of Issuance and Administrative Costs Capitalized Interest Bond Discount TOTAL The proposal provides that the bonds in the approximate amount the City's cost of the Project. $ 117,000 10,500 20,000 2.500 150,000 City shall issue tax increment of $ 150,000 to finance Section 2. Findings and Amendment of Plan. After a public hearing duly noticed and held in accordance with Minnesota Statutes, Section 273.74, subd. 4, it is hereby determined to amend the Plan to the extent necessary in order to undertake the Project and finance the Project through the issuance of tax increment bonds. The Project as proposed is an economically feasible use of the Hutchinson Hotel and comes within the framework of the Land Use and Program Objectives stated in the Development Program for Development District No. 4. The Project will result in the enhancing of the overall retail, commercial and office use of the downtown area of the City and provide rental housing for residents of the City and the surrounding area. 3. Findings. In connection with the Project and the amendment of the Plan approved in Section 2 hereof (the Plan, as amended) it is found and determined as follows: A. The Project will not occur through private investment in the reasonably forseeable future and therefore the use of tax increment financing is deemed necessary. B. The Plan, as amended, conforms to the general plan of redevelopment of the City as a whole. C. The Plan, as amended, will afford maximum opportunity, consistent with the sound needs of the City as a whole for the redevelopment of the District by private enterprise. • • PUBLISHED IN THE HUTCHINSON LEADER THURSDAY, MARCH 28, 1985 AND THURSDAY, APRIL 4, 1985 iPUBLICATION NO. 3397 EXHIBIr A NOTICE OF PUBLIC HEARING ON A HOUSING PROGRAM AND A PROPOSED PROJECT UNDER THE MUNICIPAL HOUSING PROGRAMS ACT, MINNESOTA STATUTES, CHAPTER 462C THE CITY OF HUTCHINSON, MINNESOTA NOTICE IS HEREBY GIVEN that the governing body of the City of Hutchinson, Minnesota (the "City "), will meet on April 23 1985, at 8:00 p.m. at the City offices in Hutchinson, Minnesota, for the purpose of conducting a public hearing on a Housing Plan and Program and a proposal that the City issue its revenue bonds under the Municipal Housing Programs Act, Minnesota Statutes, Chapter 462C, as amended, in order to finance the cost of a project. The proposed project will consist of acquiring land and renovating a building thereon for use as an 20 -unit residential rental facility. The Project is located at 4 Main South in the City of Hutchinson, Minnesota, which is legally described as: Lot 1, North 18 feet of Lot 2, Block 8, South half of the City of Hutchinson, County of McLeod. The current use of the property is the Hutchinson Hotel. The proposed project will be •owned by Parkview Plaza Limited Partnership, a Minnesota limited partnership of which Frank Fay will be a general partner, for use in its business. The estimated total amount of the proposed issue is $600,000. The bonds shall be a limited obligation of the City and the bonds arld interest thereon shall be payable solely from the revenues pledged to the payment thereof, except that such bonds may be secured by a mortgage and other encumbrance on the project. No holder of any such bond shall ever have the right to compel any exercise of the taxing power of the City of Hutchinson to pay the bonds, or the interest thereon, nor to enforce payment against any property of the City except the project. All persons interested may appear and be heard at the time and place set forth above. Dated: March 27 ,1985 • BY ORDER OF THE CITY COUNCIL OF THE CITY OF HUTCHINSON ,-�- d, (1) 0 • • RESOLUTION NO. 8007 ADOPTING A HOUSING PLAN PURSUANT TO MINNESOTA STATUTES, CHAPTER 462C AND RATIFYING SUBMISSION OF THE PLAN TO THE SIX EAST REGIONAL DEVELOPMENT COMMISSION. WHEREAS, pursuant to the Minnesota Municipal Housing Act, Minnesota Statutes, Chapter 462C (the "Act "), the City of Hutchinson (the "City ") is authorized to adopt a housing plan and carry out programs for the financing of multifamily housing which is affordable to persons of low and moderate income; and WHEREAS, the Act requires adoption of the housing plan after a public hearing held thereon after publication of notice in a newspaper of general circulation in the City at least thirty days in advance of the hearing; and WHEREAS, notice of a public hearing on a proposed housing plan (the "Plan ") was published in The Hutchinson Leader, a newspaper of general circulation in the City, on February 7, 1985 and February 14, 1885; and WHEREAS, the City has on this date conducted a public hearing on the Plan; and WHEREAS, the Act further requires submission of the Plan to the Six East Regional Development Commission for review and comment; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hutchinson: 1. That the Housing Plan of the City before the City Council on the date hereof is hereby in all respects adopted. 2. That the submission of the Plan to the Six East Regional Development Commission is hereby ratified and approved. ADOPTED: March 26, 1985 ATTEST: �n� , � � �a RESOLUTION NO. 8008 RESOLUTION ESTABLISHING THE DATE FOR A PUBLIC HEARING ON A MULTIFAMILY RESIDENTIAL RENTAL PROGRAM UNDER MINNESOTA STATUTES, CHAPTER 462C WHEREAS, the Municipal Housing Programs Act, Minnesota Statutes. Chapter 462C (the "Act "), authorizes the issuance of revenue bonds to finance multifamily residential rental projects after adoption of a Housing Plan, including a Housing Program component; and WHEREAS, Frank Fay as a general partner of Parkview Plaza Limited Partnership, a Minnesota limited partnership to be formed (the "Developer ") has presented this City Council (the "City Council ") of the City of Hutchinson (the "City ") with information concerning a proposed project (the "Project ") to oe acquired and- constructed within the City; and WHEREAS, the Developer has requested that the City resolve to issue revenue bonds pursuant to the Act to finance the Project; and WHEREAS, the City has adopted a Housing Plan in accordance with the requirements of the Act on March 26, 1985; and WHEREAS, the Act provides that the City Council must conduct a public hearing on the adoption of a Housing Program after publication of notice thereof at least once not less than thirty (30) days prior to the date fixed for the public hearing in a newspaper of general circulation in the City; and WHEREAS, the Developer has 1resented to the City a form of public notice, attached hereto as Exhibit A, with a request that the City Council establish a date for a public hearing on the adoption or amendment of a Housing Plan or Program including the proposal to undertake and finance the Project and that the City authorize publication of the form of public notice provided by the Developer; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON THAT: 1. The City will conduct a public hearing on the adoption of the Housing Program including the proposal to undertake and finance the Project on the 23rd day of April, 1981. 2. The City Administrator of the City is hereby authorized to cause a public notice, substantially in the form of the notice attached hereto as Exhibit A, to be published in a newspaper of general circulation in the City. Adopted by the Citv Council this 26th day of March, 1985. Gary . P1 t Robert H. Stearns City Clerk Mayor EXHIBIT A NOTICE OF PUBLIC HEARING ON A HOUSING i PROGRAM AND A PROPOSED PROJECT UNDER THE MUNICIPAL HOUSING PROGRAMS ACT, MINNESOTA STATUTES, CHAPTER 462C THE CITY OF HUTCHINSON, MINNESOTA NOTICE IS HEREBY GIVEN that the governing body of the City of Hutchinson, Minnesota (the "City "), will meet on April 23 , 1985, at 8:00 p.m. at the City offices in Hutchinson, Minnesota, for the purpose of conducting a public hearing on a Housing Plan and Program and a proposal that the City issue its revenue bonds under the Municipal Housing Programs Act, Minnesota Statutes, Chapter 462C, as amended, in order to finance the cost of a project. The proposed project will consist of acquiring land and renovating a building tliereon for use as an 20 -unit residential rental facility. The Project is located at 4 Main South in the City of Hutchinson, Minnesota, which is legally described as: Lot 1, North 18 feet of Lot 2, Block 8, South half of the City of Hutchinson, County of McLeod. The current use of the property is the Hutchinson Hotel. The proposed project will be owned by Parkview Plaza Limited Partnership, a Minnesota limited partnership of which Frank Fay will be a general partner, for use in its business. The estimated total amount of the proposed issue is $600,000. The bonds shall be a limited obligation of the City and the bonds and interest thereon shall be payable solely from the revenues pledged to the payment thereof, except that such bonds may be secured by a mortgage and other encumbrance on the project. No holder of any such bond shall ever have the right to compel any exercise of the taxing power of the City of Hutchinson to pay the bonds, or the interest thereon, nor to enforce payment against any property of the City except the project. All persons interested may appear and be heard at the time and place set forth above. Dated: March 27--, 1985 BY ORDER OF THE CITY COUNCIL OF THE CITY OF HUTCHINSON UJIMEAk M.2% WMN&I" +1 • (612) 587 -5151 37 WASHINGTON AVENUE WEST HUTCHINSON, MINN. 55350 March 28, 1985 Re: Rehabilitation of Hutchinson Hotel (Frank Fay) Atty. Stefanie N. Galey Holmes & Graven 470 Pillsbury Center Minneapolis, MN 55402 Dear Atty. Galey: The City Council took the following action at its March 26, 1985 meeting: 1. Approved the Housing Plan and adopted Resolution No. 8007 • 2. Scheduled a new public hearing for April 23, 1985 at 8:00 P.M. for the Housing Revenue Bonds and adopted Resolution No. 8008 3. Scheduled a new public hearing for April 23, 1985 at 8:00 P.M. for the Industrial Revenue Bonds and adopted Resolution No. 8009 4. Continued the public hearing to April 23, 1985 at 8 :00 P.M. for Tax Increment Financing Enclosed are certified copies of the above -named Resolutions. Sincerely, CITY OF HUTCH INS Ij Marilyn Swanson Administrative Secretary Encl. LJ SIX UST REGIONflh DEVEhOPMENT COMMISSION 333 WEST SIXTH STREET WILLMAR, MINNESOTA 56201 (612) 235 -8504 COMMISSION OFFICERS EXECUTIVE DIRECTOR PROGRAM STAFF Ed Duesterhoeft H. Eugene Hippe ECONOMIC /COMMUNITY Chairman DEVELOPMENT • Orville Wog Jerry Grinde Vice Chairman Eilert Flemming 4 \902122 ?� Lee Larson n \- �� Robert Otto Secretary%Treasurer ^�� Q^ Robert Overby FC`f fja^ AGING t2 G>LFjt�_ Kathleen McCormick February 22, 1985 —`'f.D Co FINANCE Lorraine Patton 8�9stieZ` Gary Plotz City Administrator City of Hutchinson 37 Washington Avenue West Hutchinson, MN 55350 RE: Consistency of Hutchinson Housing Plan and Proposed Housing Project (F & T Joint Venture) with Regional Housing Goals and Objectives. Dear Gary: The Commission staff has analyzed the finds of the City of Hutchinson's Housing Plan in terms of its support for the proposed multi -unit residential facility, to be financed in dart by revenue bonds issued by the City. We have also analyzed the City's Housing Plan in terms of its con- sistency with the goals and objectives of the Commission's 1984 Regional Housing study. The Commission staff has found the City of Hutchinson's Housing Plan is supportive of the proposed multi -unit residential rental facility, and (the Plan) is also consistent with regional housing goals and policies. Excerpts from the local housing plan and the regional housing plan which support our findings are attached. Let me know if you should need additional input from our office on this project. Sincerely, Robert L. Overby Community & Economic DE pment Specialist RLO:kr 0 Enc. HOUSING RECOMMENDATIONS The City of Hutchinson, like most other cities in the United State:, has not in the past exerted a major role or influence on the housing market. Normally, city involvement in the production, design, and quality of housing has been limited and building to subdivision regulations and zoning'controls which have tended to limit what a developer can build. Through this system of M controls and regulations, the City has been able to play a restraining role on the development of housing and other facili- ties in the City. The changing economic situation, high cost of production of housing, and the low fixed income nature of some of the City's residents begins to mandate that the City play • a more active role in this area. Also, if the City is to grow and prosper and to provide reasonable and good housing for am all those desiring to live in the City, then the City should begin to play a more dominant role in encouraging the diversity, quality, and type of housing it wishes to have constructed in the City. The research analysis contained in this report provides ample evidence that the City should assume a stronger role in order to correct deficiencies in the supply of housing and to encourage the expansion of the supply when such is jus- tified. Based on a review of the information contained within this report, the following recommendations are made: A. The Role of the Housing and Redevelopment Authority It is recommended that the Housing and Redevelopment • Authority (H.R.A.) of the City of Hutchinson accept a a mayor role in promoting the expansion of housing for low I and moderate Income families and individuals. It is recorended that the H.R.A. concentrate on providinZ elderly and non -child 1"amilY-'3 housing in and near the dcwntown area and to develop a program of providing housinL, — for low - income families with children on a scattered basin ZZ throughout the residential neihborhoods of the City. M • • G� lJ Apartment Buildere It is recor:- j. that the Cit consider the use of Co=..unity Development lu-ds and other available mcnie-- tc prcvide desirable multi- family apartment sites in close p ^orimity to the dz),Vintown area. the City does not bare any reasonably priced multi - family apartment Sites in tic area. Cense^uently, this housing is not being produced in this area where it is needed. The lack of the availabilit,; of close -in sites forces new apartment construction into newer single family area, thereby detracting from to single family character of the newly formed nelghbort-_oodc and causing undo hostilities or attitudes between dc-.,eloner and residents. .. a iz also recommended that the City encourage the wo _can:: c'nd . mor "r-a -es along k'_t*- con- -,-T) c o° hc,..cirg acco�- oc,at,s-. is ord -_r to gu- rantee that rental units are available at !::'1CaS to all tho--e •rlho �a; aeek " r...al 2CCo^!- -.;oa2tlonr w7 E 0 S 1 X E •A S T HOUSING 1984 ANALYSIS & POLICIES KANDIYOH I MEEKER RENVILLE Regional E McLEOD t Development Commission a HOUSING GOALS 1. ADEQUATE HOUSING SUITABLE TO THE NEEDS AND WITHIN THE MEANS OF ALL RESIDENTS IN THE REGION. 2. CONVENIENT, SAFE AND AESTHETIC LIVING ENVIRONMENTS FOR ALL RESIDENTS IN THE REGION. Housing Objectives 1. ASSURE THE AVAILABILITY OF A'N ADEQUATE SUPPLY OF HOUSING IN A WIDE RANGE OF PRICES, TYPES AND LOCATIONS. 2. ENCOURAGE P?ESER ATION AND, AZ,YE=E "NECESSARY, REHABILITATION OF EXISTINGr.'OUSL'NG STOC 3. ESTAHISH G ?.ATE' COO ?ERATJ"_, I_,.EE:: THE PURL -- .:_iD PR-VA -- - �. PROVIDE FOR GRE.,TER r 1- �OC.4L G_ :'eR::_ ..15. 5. PROh10TE A GREATS COI•L.ITi-1,:iJT BY LOCAL G0,1ERI;',JENT IiN DEVELOPIiJG AiJJ AD ?•,rrNIS =EiI:: ; HOUST P40Gr ' S 0 T THE FEEDS 0? r AND MODERATE INCOIE 'OUSEHOLDS. 1 -3 n Choice OBJECTIVE ASSURE THE AVAILABILITY Or AN ADEQUATE SL ? ?--' OF HOUSIIG I:d A WIDE R4NGE OF PRICES, TYPES AND LOCATIONS. Most communities are made up of households widely diver- gent in income capabilities, housing preferences and employ- ment or service destinations. Furthermore, over the life cycle of an individual household, these factors can be expected to change often enough to result in different housing preferences and needs. Lack of choice in housing can present obstacles to mobility, have adverse effects on the availability of labor and make it difficult for residents to establish roots in the community. Policy: The private sector should be given both the • flexibility and the support necessary to provide a wide range of housing. • Policy: Housing subsidies should be pursued in order to provide greater choices in housing, particularly for low and moderate income households. Policy: The institutional capacity necessary for participation in subsidy programs should be established. Policy: Undue concentrations by type or price of housing should be avoided both within and among communities. Policy: Because assisted housing generally is not subjected to the rigors of market acceptability, efforts should be made to determine the needs and preference of the population group served by it. 1 -4 Commitment OBJECTIVE PRO140TE A GREATER C01VITAENT BY LOCAL GOVERiP ENT IN DEVELOP-7.17G AND ADMINISTERING HOUSING PROGRA,5 TO WET THE 'IEEDS OF LOW AND 610DERATE INCOIE HOUSEHOLDS. The private sector is not able to meet the housing needs of all population segments. Many households simply -do not have enough money to obtain or maintain adequate housing in the private market. Government, then, is often asked to address the needs of households lacking resources necessary for obtaining shelter through the private market. The role of government in meeting housing needs is Iona established. At the federal level, recognition of housing as a national concern led to programs designed primarily to help meet the housing needs of persons with low and moderate incomes. Initially, these programs, which were usually of limited scope, were designed and administered by the Federal Government. During recent years, however, federal policy has recognized that while communities may still need funding assistance, they are better able to identify their own housing needs and design their own housing programs. General revenue sharing and block grants with fewer strings attached now provide local government additional fle:-.ibilicy to develop and administer housing programs supported by the Federal Government. The State of Minnesota has also recognized housing as a concern of the state and has desig_ed hcusino pr__ra:-s cc -eet the needs of persons ..ith low an,: mr - c- ce—rate ins -cs. Wi:h the combination of local initiati•:e and desig: and federal and state financial assistance, local govern- ment now has an opportunity to develop a greater and more effective commitment to meeting housing needs, especially 0 E i i L E Cooperation OBJECTIVE ESTABLISH GREATER COOPEP.ATION BETWEEN THE PUBLIC AND PRIVA c SECTOR. Housing is a joint undertaking by the private and public sector in many respects. Houses themselves are usually privately produced and financed, while many of the facilities and services necessary to make them habit- able are publically provided. The public sector also plays a significant role in regulating housing, a role that has become increasingly important in recent years. Regulations, however, often have not kept pace with tech- nological advances or new approaches in development which, if permitted, might result in reducing the cost of • producing housing and providing-facilities and services. Policy: Existing public and private institutions should be involved in housing efforts as much as possible. Policy: An adequate supply of suitable land appro- priately zoned for residential development should be made available. Policy: Public facilities and services should be used to guide community development and not to deliberately increase the cost of housing or restrict its overall expansion. Policy: New approaches for development should be encouraged by incorporating them into subdivisions and other land use regulations. Policy: Lance should Policy: for state or minimum leve proposal. Any application for state or federal ass-- be cost effective. Administrative costs associated with recuests federal assistance should be kept to the 1 necessary to effectively administer the 1 -6 those of low and moderate income households. In doing so, the institution of local government itself can be strengthened. Policy: Communities and counties should be encouraged to form housing and redevelopment authorities (HRA's) or consolidate HRA's where duplication of effort is evident. Policy: Federal and state agencies should be encouraged to simplify application procedures and hasten application processing times. Policy: The Regional Development Commission should assume a role in providing information on housing condi- tions and needs to the citizens and elected officials of the region in order that they can more easily determine their need for various housing programs. • 9 1 -9 PUBLISHED IN THE HUTCHINSON LEADER THURSDAY, MARCH 28, 1985 AND THURSDAY, APRIL 4, 1985 PUBLICATION N0. 3396 EXHIBIT A NOTICE OF PU3LIC HEARING ON A PROPOSED PROJECT UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT, MINNESOTA STATUTES, CHAPTER 474, AS AMEN DED THE CITY OF HUTCHINSON, MINNESOTA NOTICE IS HEREBY GIVEN that the governing body of the City of Hutchinson, Minnesota (the "City "), will meet on April 23 , 1985, at 8:00 p.m. at the City offices in Hutchinson, Minnesota, for the purpose of conducting a public hearing on a proposal that the City issue its revenue bonds under the Municipal Industrial Development Act, Minnesota Statutes, Chapter 474, as amended, in order to finance the cost of a project. The proposed project will consist of acquiring land and renovating a building thereon for use as an approximately 14,000 square foot (net rentable space) commercial rental facility. The Project is located at 4 Main South in the City of Hutchinson, Minnesota, which is legally described as: Lot 1, North 18 feet of Lot 2, Block 8, South half of the City of Hutchinson, County of •McLeod. The current use of the property is the Hutchinson Hotel. The proposed project will be owned by Parkview Plaza Limited Partnership, a Minnesota limited partnership to be formed of which Frank Fay will be a general partner, for use in its business. The estimated total amount of the proposed issue is $500,000. The bonds shall be a limited obligation of the City and the bonds and interest thereon shall be payable solely from the revenues pledged to the payment thereof, except that such bonds may be secured by a mortgage and other . encumbrance on the project. No holder of any such bond shall ever have the right to compel any exercise of the taxing power of the City of Hutchinson to pay the bonds, or the interest thereon, nor to enforce payment against any property of the City except the project. A draft copy of the proposed application to the Minnesota Energy and Economic Development Authority for approval of the project, together with all attachments and exhibits thereto, is available for public inspection at the City offices. All persons interested may appear and be heard at the time and place set forth above. Dated: March 271 1985 BY ORDER OF THE CITY COUNCIL OF THE CITY OF HUTCHINSON • By L Cit dministra r RESOLUTION NO. 8009 RESOLUTION ESTABLISHING THE DATE FOR A . PUBLIC HEARING ON A PROPOSAL TO UNDERTAKE AND FINANCE A PROJECT UNDER MINNESOTA STATUTES, CHAPTER 474 WHEREAS, the Minnesota Municipal. Industrial Development Act, Minnesota Statutes, Sections 474.01 et sue. (the "Act "), authorizes the issuance of revenue bonds to finance projects; and WHEREAS, the term "project" is defined by Section 474.02, subdivision la, of the Act to include "any properties, real or personal, used or useful in connection with a revenue producing enterprise "; and WHEREAS, Frank Fay, as a general partner of Parkview Plaza Limited Partnership, a Minnesota limited partnership to be farmed (the "Developer ") hes presented this City Council (the "City Council ") of the City of Hutchinson (the "City ") with information concerning a proposed project (the "Project ") to be acquired and constructed within the City; and WHEREAS, the Developer has requested that the City resolve to issue revenue bonds pursuant to the Act to finance the Project; and WHEREAS, Section 474.01, subdivision 7b, of the Act provides that the City Council must conduct a public hearing on any proposal to undertake and finance a project; and WHEREAS, Section 474.01, subdivision 7b, of the Act provides that notice of the time and place of such public hearing and stating the general nature of the project and an estimate of the principal amount of the bonds or other obligations to be issued to finance the project must be published at least once not less than fifteen (15) days nor more than thirty (30) days prior to the date fixed for the public hearing in the official newspaper of the City and a newspaper of general circulation in the City; and WHEREAS, Section 474.01, subdivision 7b, of the Act provides that the notice must state that a draft copy of the proposed application (the "Application ") to the Minnesota Energy and Economic Development Authority for approval of the Project, together with all attachments and exhibits, is on file with the City and available for public inspection; and WHEREAS, the Developer has presented to the City a form of public notice, attached hereto as Exhibit A, with a request that the City Council establish a date for a public hearing on the proposal to undertake and finance the Project and authorize publication of the form of public notice provided by the Developer; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON THAT: 1. The City will conduct a public hearing on the proposal to undertake and finance the Project on the 23rd day of April, 1985. -1- 2. The City Administrator of the City is hereby authorized to cause a public notice, substantially in the form of the notice attached hereto as Exhibit A, to be published in the official newspaper of the City and a newspaper of general circulation in the City. 3. The City Administrator of the City is hereby authorized and directed to have available for public inspection in the offices of the City a draft copy of the proposed Application, together with all attachments and exhibits thereto. 4. Neither this resolution nor any resolution which may be adopted after public hearing shall constitute a grant of the bond issuance authority of the City. The City retains the sole discretion to award any allocation of such authority to any other applicant or applicants and to withhold such an allocation from the Developer. Adopted by the City Council this 26th day of March, 1985. • ATTEST: A it itv Clerk • -2- Robert H. Stearns Mayor ExIfIBIT A NOTICE OF PUBLIC HEARING ON A PROPOSED • PROJECT UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT, MINNESOTA STATUTES, CHAP'T'ER 474, AS AMENDED THE CITY OF HUTCHINSON, MINNESOTA NOTICE IS HEREBY GIVEN that the governing body of the City of Hutchinson, Minnesota (the "City "), will meet on April 23 1985, at 8:00 p.m. at the City offices in Hutchinson, Minnesota, for the purpose of conducting a p,..,blic hearing on a proposal that the City issue its revenue bonds under the Municipal Industrial Development Act, Minnesota Statutes, Chapter 474, as amended, in order to finance the cost of a project. The proposed project will consist of acquiring land and renovating a building thereon for use as an approximately 14,000 square foot (net rentable space) commercial rental facility. The Project is located at 4 Main` South in the City of Hutchinson, Minnesota, which is legally described as: Lot 1, North 18 feet of Lot 2, Block 8, South half of the City of Hutchinson, County of McLeod. The current use of the property is the Hutchinson Hotel. The proposed project will be owned by Parkview Plaza Limited Partnership, a Minnesota limited partnership to be formed of which Frank Fay will be a general partner, for use in its business. The estimated total amount of the proposed issue is $500,000. The bonds shall be a limited obligation of the City and the bonds and interest thereon shall be payable solely from the revenues pledged to the payment thereof, except that such bonds may be secured by a mortgage and other encumbrance on the project. No holder of any such bond shall ever have the right to compel any exercise of the taxing power of the City of Hutchinson to pay the bonds, or the interest thereon, nor to enforce payment against any property of the City except the project. A draft copy of the proposed application to the Minnesota Energy and Economic Development Authority for approval of the project, together with all attachments and exhibits thereto, is available for public inspection at the City offices. All persons interested may appear and be heard at the time and place set forth above. Dated: March 27 , 1985 BY ORDER OF THE CITY COUNCIL OF THE CITY OF HUTCHINSON Frank J. Fay 6% Better i Realty I I dd Homesu FRANK J. FAY REALTY INC. 126 Main South Hutchinson, Minnesota 55350 Telephone (612) 587 -2341 August 28, 1984 City of Hutchinson City Hall Hutchinson, MN 55350 Attn: City Council Dear N1abers of the Council: We ask your support on the Industrial Bonds for the rehabilitation of the Hutch Hotel. • We need the approval of these bonds to make this project economically feasible. Thank you. sincerely, K F'r J. F � F and T Joint Vlentner FJF /gjb • e � � oo °ems -y� HUTCHINSON COWIT'N1TY i)EVF.? OPMFNT CORPORATIGN Board of Directors Mcuting April 4, 1985 MINUTES Directors Present: L�\ i Others Present: Pon McGraw, Chairman John Bernhagen, Fxecutive Director Buzz Burich Gary Plotz, City Administrator Tom Daggett Mark Myers, Chamber Executive Vice Pres. Don Glas Glenn Matejka U t1l rNI The meeting way- alled to order by Chairman McGraw at 7:00 a.m.�1\ Gay Minutes of the February 7 and 11 meeting were approved. Treasurer's report was approved. �Dased on the nine TRB criteria that has recently been established, a review of these criteria was given for the Parkview Plaza project. Motion made, seconded and carried to confirm that the project met seven of the nine criteria with potential of meeting criterial number six and seven. Motion made, seconded and carried that the previous action as passed for use of IRB's on January 3, 1985 on a first come first serve basis is established on the basis of favorable approvable evidenced by passage of the inducement resolution which is the action of the City Council after the public hearing. Gary Plotz report +.d that the City Council is asking Hutchinson immunity Development Corporation to help in preparation of a plan for the use of the cities TIF account and to help in the planning of the city owned land surrounding the new waste water treatment facility. The TIF account project will be turned over to the Finance Cvmmittce and the Industrial Park project to the Sites and Build - ing Committee. Bernhag,-n is to set up a two day conference in the later part of May or early Jl_,ne fur the board and staff. Meeting was adjourned at 9:00 a.m. Cha: 1.a of conference: _:tar City h,-.s !�r -en resuitcu�itd to Su};t,: ^t:.r 1 ? -19 insto�d of Mav 7_9, t 1r1 u Jl,hn 1, Bernhapen Eauwim Dirn'au 16121 5117 -5:52 Gary D. Plan. City Adainanlnr 16121 587-5151 :OARD OF DIRECTORS Prc.. Ruwld 1. WC. Aw tv,y al Lar iuc Pr+. Anhur L. Caper ProWaa Firs NA..[ Bank Scc.lTru. Chad B. Piehl Cenil'ied Public Aw Partner, Du Waym Paemm & Co. T.A. IBu¢1 Bu,.h EA, V.P. Ca,r Rank and True C... T,un Dagg.11 V.P., Gcxrul hlariatm uchi m Mf Salo. Inc. Fla. Prt . F.J . c1c. Malcju S.nC 10 SIN.41 Dwrl.r a_1 • Hutchinson Community Development Corp. 45 Washington Ave. Eau Hutchinson, Minnesota 55350 40 January 17, 1985 Frank Fay 126 Main Street South Hutchinson, MN 55350 RE: R & T Joint Venture - Parkview Plaza Dear Mr. Fay: At the Hutchinson Community Development Corporation meeting of January 17, action was taken regarding the proposal you presented. The following resolution was approved. The Board of Directors of Hutchinson Community Development Corporation recommended to the Hutchinson City Council the approval of the Parkview Plaza project contingent upon the necessary financial statements required including appropriate loan guarantee and the city auditor giving favorable review of the project. As a reminder, it will be necessary for you to submit your project to the city auditor so that a statement by them will be available at the City Council's public hearing on February 26. Sincerely, John Bernhagen, Executive Director ti ` TC The City Council of Hutchinson, Minnesota Dear Council Members: PIPER JAFFRA�'& H�)RW)OF) a.A., Eu Mln.ea X895 M.mEe. New vo l Soc. E¢nanpe me Piper )affTm T cr Pest Office Box_ 'v4inne-apoli,, Alinre«ot.i �i440 h12 -342-6000 April 18, 1985 With - regard to the Proposed Industrial Development Revenue and Housing Revenue Bond issues on behalf of the Parkview Limited Partnership, we have had discussions with the principals regarding the feasibility of the proposed project and subject to the following: 1. satisfactory documentation 2. securing a AA rated Letter of Credit or equivalent alternative form of credit enhancement. We would agree to underwrite the proposed bond issue. Sincerely, PIPER, JAFFRAY & HOP OD INCORPORATED Michael P. Grossman Public Finance Department MPG /rrb 0 `J a RESOLUTION NO. RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJECT UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT, REFERRING THE PROPOSAL TO THE MINNESOTA DEPARTMENT OF ENERGY AND ECONOMIC DEVELOPMENT FOR APPROVAL, AND AUTHORIZING PREPARATION OF NECESSARY DOCUMENTS WHEREAS, the welfare of the State of Minnesota (the "State") requires active promotion, attraction, encouragement and development of economically sound industry and commerce through governmental acts to prevent, so far as possible, emergence of blighted lands and areas of chronic unemployment, and it is the policy of the State to facilitate and encourage action by local government units to prevent the economic deterioration of such areas to the point where the process can be reversed only by total redevelopment through the use of local, state and federal funds derived from taxation, with the attendant necessity of relocating displaced persons and of duplicating public services In other areas; and WHEREAS, technological change has caused a shift to a significant degree in the area of opportunity for educated youth to processing, transporting, marketing, service and other industries, and unless existing and related industries are retained and new industries are developed to use the available resources of the •City of Hutchinson (the "City"), a large part of the existing investment of the community and of the State as a whole in educational and public service facilities will be lost, and the movement of talented, educated personnel of mature age to areas where their services may be effectively used and compensated and the lessening attraction of persons and businesses from other areas for purposes of industry, commerce and tourism will deprive the City and the State of the economic and human resources needed as a base for providing governmental services and facilities for the remaining population; and WHEREAS, the increase in the amount and cost of governmental services requires the need for more intensive development and use of land to provide an adequate tax base to finance these costs; and WHEREAS, a representative of F & T Joint Venture, a Minnesota general partnership (the "Developer "), has advised this City Council that it desires to acquire land and renovate a building thereon for use as a 15,000 square foot (net rentable space) commercial rental facility (hereinafter referred to as the "Project"). The Project will be located at 4 Main South in the City of Hutchinson, Minnesota, which is legally described as: Lot 1, North 18 feet of Lot 2, Block 8, South half of the City of Hutchinson, County of McCloud. The current use of the property is the Hutchinson Hotel. The Proposed project will be owned by the Developer for use in their business; and WHEREAS, the existence of the Project in the City will contribute to more intensive development and use of land to increase the tax base of the City and overla ?ping taxing authorities and maintain and provide for an increase in opportunities for employment for residents of the City, including economically disadvantaged or unemployed individuals; and WHEREAS, the City has been advised that conventional, commercial • financing to pay the capital cost of the Project is available at such costs of borrowing that the economic feasibility of operating the Project would be significantly reduced, and, therefore, the City finds that but for the aid of municipal financing, and its resulting lower borrowing cost, the Project would not be underaken;and WHEREAS, this Council has been advised by a representative of the Developer that on the basis of information submitted to them and their discussions with representatives of area financial institutions and potential buyers of tax - exempt bonds, industrial development revenue bonds of the City could be issued and sold upon favorable rates and terms to finance the Project; and WHEREAS, the City is authorized by Minnesota Statutes, Chapter 474, to Issue its revenue bonds to finance the cost, in whole or in part, of the acquisition, construction, reconstruction, improvement or extension of capital projects consisting of properties used and useful in connection with a revenue producing enterprise, such as that of the Developer, and the issuance of such bonds by the City would be a substantial inducement to the Developer to construct its facility in the City; and WHEREAS, on the basis of Information given the City to date, it appears that it would be in the best interest of the City to issue its industrial development revenue bonds under the provisions of Chapter 474 to finance the Project of the Developer in an amount presently estimated not to exceed $500,000. NOW, THEREFORE, BE IT RESOLVED THAT: 1. The Project is hereby given preliminary approval by the City and the issuance of the revenue bonds for such purpose and in such amount is preliminarily approved, subject to approval of the Project by the Minnesota Department of Energy and Economic Development and to the mutual agreement of this body, the Developer and the initial purchaser of the bonds as to the details of the bonds and provisions for their payment. In all events, it is understood, however, that the bonds of the City shall not constitute a charge, lien or encumbrance legal or equitable upon any property of the City except the Project, and the bonds, when, as, and if issued, shall recite in substance that the bonds, including interest thereon, are payable solely from the revenues received from the Project and property pledged to the payment thereof, and shall not constitute a debt of the City. 2. In accordance with Minnesota Statutes, Section 474.01, Subdivision 7a, the Mayor of the City is hereby authorized and directed to submit the proposal for the Project to the Minnesota Department of Energy and Economic Development for approval of the Project. The :Mayor and other officers, employees and agents of the City are hereby authorized to provide the Minnesota Department of Energy and Economic Development with any preliminary information needed for this purpose, and the City Attorney is authorized to initiate and assist in the preparation of such documents as may be appropriate to the Project, if it is approved by the Minnesota Department of Energy and Economic Development. -2- 3. The law firm of Holmes do Graven, Chartered, is authorized to act as Bond Counsel and to assist in the preparation and review of necessary documents reatinD to the Project and bonds issued in connection therewith. The Mayor, City Attorney, and other officers, employees and agents of the City are hereby authorized to assist Bond Counsel in the preparation of such documents. 4. In accordance with Minnesota Statutes, Section 474.01, Subdivision 11, the City Administrator and other officers, employees and agents of the City are hereby authorized and directed to encourage the Developer to provide employment opportunities to economically disadvantaged or unemployed Individuals. Such individuals may be identified by such mechanisms as are available to the City, Including a first source agreement in which the Developer agrees to use a designated State employment office as a first source for employment recruitment, referral, and placement. Adopted by the City Council this 23rd day of April, 1985. • ATTEST: Gary D. Plotz City Clerk • -3- Robert H. Stearns Mayor (�Wmle/ 4eel 4 Main Street South Hutchinson, Minnesota 55350 'Vril 16, 1985 City :call 37 Washington Avenue West Hutchinson, MV 55350 Att: Robert Stearns,Mayor City Council MaTbers Dear Mayor Stearns and Council Menbers: f Z n4+ i :E: Parkviw Plaza A;e- are scheduled to appear before the Council Meeting on Tuesday, April 23, 1985, regarding the Tax Increment Financing for the Parkview Plaza Project. This project will not be undertaken by this partnership except by the avail- ability of the Tax Increment Financing by the City. Thank you for your consideration. Very truly yours, Parcviea P %O Partnership Frank J. ay, Geiferal Partner FJF /gjb • TO: FROM: SUBJECT: 11 \J (612) 587 -5151 j c1: Y OF HuTCHINSCAJ 37 WASHING TON AVE NUE IVES" HUTCHINSON, MINN. 55350 M E M O R A N D U M DATE: April 17, 1985 Mayor and City Council ------------------------ - - - - -- Planning Commission ------------------------ - - - - -- FRANK FAY HOTEL REDEVELOPMENT PROJECT ------------------------ - - - - -- At the regular meeting of the Planning Commission on April 16, 1985, the Frank Fay Hotel Redevelopment project was reviewed with regard to the Comprehensive Plan. It was the consensus of the Planning Commission that the concept of the renovation of the Hutch Hotel is in accordance with the comprehensive plan. The Planning Commission recommends approval of the concept of the renovation of the Hutch Hotel. COUNTY OF McLEOD 830 11 th Street East Glencoe, Minnesota 55336 MILO N. KUBASCH GRANT G. KNUTSON LAWRENCE A. WENDORFF, Chairma n let District 3rd District 5th District Phone (612) 085-2657 Phone (612) 587-9108 Phone (612) 587 -4079 261 Sherman Ave. E, Box 208 Route 0 St. 3, Box 212 Winsted, 55395 Hutchinson, 55350 Hutchinson, 55350 MELVIN H. DOSE HOWARD CHRISTENSEN, Vice Chalrman GENE REDDEMANN 2nd District 0th District Fxecutive Secretary Phone (61 2) 884 -3304 Phone (612) 587 -0788 Phone (612) 864 -5551 St. 2, Box 180 St. 1, Box 247 Courthouse Glencoe, 55336 Hutchinson 55360 Glencoe, Minnesota 55336 April 5, 1985 Mr. Gary Plotz City Administrator City of Hutchinson 37 Washington Avenue West Hutchinson, MN 55350 Dear Gary: Q McLeod �234567,�' 4P ccC) J C" • 1. .. This acknowledges your March 15th letter and the tax increment amendment for rehabilitation of the Hutchinson Hotel. You and other representatives from the City of Hutchinson discussed this tax increment proposal with the County Board on March 26. The County Hoard after reviewing it decided to take no position on your proposal. This verifies that the City of Hutchinson reviewed the tax increment amendment for rehabilitation of the Hutchinson Hotel with the County Board as required by applicable state law. If there are any questions, please advise. GR /nm S5cArely, J - demann Executive Secretary McLEOD COUNTY IS AN EQUAL OPPORTUNITY EMPLOYER • • HUTCHINSON PUBLIC SCHOOLS f�GEGORDON•Cwtrouna INDEPENDENT SCHOOL DISTRICT NO. 423 POD' CI°t GREEN, Tte HUTCHINSON, MINNESOTA 55350 uurar Glenn Matejka, Superintendent of Schools March 26, 1985 Mayor Robert Stearns Members of the City Council Hutchinson City Hall Hutchinson, MN 55350 RE: Tax Increment Financing Rehabilitation of the Hutchinson Hotel Dear Mayor Stearns and Council Members: MWAYNE PETERSON, Vice Cheltssr DANIEL PERRINE. Dhectet LUCI t c ARLT. Dbacm 3031•h� M As per the request of the City Administrator, the Hutchinson Board of Education has reviewed the above mentioned proposed project. The School Board has not taken a position of opposition in reference to tax increment financing for the rehabilitation of the Hutchinson Hotel. However, the school district re is consideration concerning the increase of tax incremen valuate n as per the city document on tax increment financing,/ page 39. The school district requests special arrangemeriXs turn to the school district a portion of the taxes that ha en raised from the recent increase of valuation on tax increment districts. An early response regarding parag aph 3 would be appreciated. Thank you for your consideration. Sincerely, � �r� �Wayne Pe erson Vice Chaan, Board of Education •STRICT OFFICES AREA VOCATIONAL- TECHNICAL INSTITUTE 30 Glen Street NonY 200 Century Avenue Phone1612)587 -2860 Photo (612) 587.3636 SENIOR HIGH SCHOOL Roberts Road Phone 1612) 587 -2151 EQUAL OPPORTUNITY EMPLOYER JUNIOR HIGH SCHOOL Roberts Road Phone 1612) 587.2656 ELEMENTARY SCHOOL 100 Glen Street Phoae(612) 587.2837 G. H, Yearly Principal and Interest • Payment in Years 3 - 23 $301,200 Estimated Tax Increment From Areas 1, 2, and 3 Years 3 - 23 333,133 Surplus Tax Increment $ 31,833 The Interest rate and amortization period of the bond issue will be adjusted to current economic conditions prior to the authorization for the sale of bonds. The adjustments will, however, be accomplished in such a manner to guarantee financial feasibility within the above framework. While the activities in the four Development areas are anticipated to be carried out over the next five to six years, this tax increment plan contemplates public expenditures taking place over a two year period of time. At the end of this time period, no new capital expenditures will be proposed unless this plan is modified to reflect those expenditures. Should modification of this plan be considered, it will be subject to the same adoption procedures as this plan. ESTIMATED IMPACT ON TAXING JURISDICTIONS The four areas contained in the Development Districts as established, or to be established, have a base year assessed value of $2,990,097, As such, it represents the following percentages of the taxable base of each jurisdiction. -39- r-1 6A Additional tax increments, in an amount not to exceed K those derived from Area 4, will be utilized to reduce or abate the nonassessed portion of a bond issue to pro- vide public parking in Areas 1 and 2. The tax increment from Area 4 is currently estimated at $127,000, which y would be sufficient to amortize the ssesse re Nk of arki ng pro $m_ 1rlpntifioA sa, =ice ig �thhe re The City of Hutchinson may enter into special agreements with the affected taxing jurisdictions to return to them any tax increment derived from Area 4 which is attrib- utable to taxes levied by such taxing jurisdictions for .their debt service resulting from referendums. DURATION OF THE PROGRAM 7EXISTEA While the activities in the four Development areas are anticipated to be carried out over the next five to six years, this tax increment plan contemplates public expenditures taking place over a two year period of time. At the end of this time period, no new capital expenditures will be proposed unless this plan is modified to reflect those expenditures. Should modification of this plan be considered, it will be subject to the same adoption procedures as this plan. ESTIMATED IMPACT ON TAXING JURISDICTIONS The four areas contained in the Development Districts as established, or to be established, have a base year assessed value of $2,990,097, As such, it represents the following percentages of the taxable base of each jurisdiction. -39- r-1 6A EHLERS AND ASSOCIATES, INC FINANCIAL SPECIALIST` FIRST Ar10NAL-SOO LINE CONCOURSE 507 MARQUETTE AVE. MINNEAPOLIS. MINNESOTA 55402 339-8291 [AREA COOE 812 a February 26, 1985 Mayor and City Council City of Hutchinson City Hall Hutchinson, Minnesota RE: Tax Increment Amendment for Rehabilitation of Hutchinson Hotel Attached is the amendment to the tax increment program to accomplish the rehabilitation of the Hutchinson Hotel. I recommend the City Council hear evidence and testimony on February 26, 1985 and continue the Hearing to March 26, 1985. At that time, the Council will hold hearings on the Housing Bonds and the Industrial Development Revenue Bonds. It is my opinion the City Council should consider the tax increment •issue only after full and complete representations on Housing and IDB bonds are made. The City has shown its willingness to participate in the project and therefore need not take any further action unti9 after the Housing and ID8 bond matters have been decided. If the project receives favorable consideration in March, the Council will take action on findings and the amendment to the Tax Increment Plan and Program. Very truly yours, EHLERS AND ASSOCIATES, INC. William E. Fahey First Vice President WEF:nel i AMENDMENT TO THE DEVELOPMENT PROGRAM AND THE TAX INCREMENT FINANCING PLAN FOR DEVELOPMENT DISTRICT NO. 4 OF THE CITY OF HUTCHINSON, MINNESOTA Section 1. Recitals. The Hutchinson City Council, by resolution adopted 0ct0ct -14, 1980, designated a development district pursuant to Minnesota Statutes, Chapter 472A and a tax increment financing district pursuant to Minnesota Statutes, Sections 273.71 through 273.78. Both the development district and the tax increment financing district have been designated Development District No. 4 (the District). The Hutchinson City Council has previously approved a Tax Increment Financing Plan for the District (the Original Plan). By Resolution No. 71.40, adopted by the Hutchinson City Council on May 25, 1982, the Hutchinson City Council approved an amendment to the Plan (the 1982 Amendment). The Original Plan, as amended by the 1982 Amendment is hereinafter referred to as the Plan. Located within the District at the southwest corner of Main Street and Washington Avenue is the Hutchinson Hotel (the Hutchinson Hotel). It has been proposed that the Plan be amended to provide for the acquisition of the Hutchinson Hotel by the City and the sale thereof to a developer designated by the City at a reduced cost pursuant to a development agreement under which the developer agrees to renovate and rehabilitate the Hutchinson Hotel for commercial and residential use (the Project). E The City's cost of the Project is estimated to be as follows: ^f�F ` 1 Land Acquisition S 117,000 Cost of Issuance and Administrative Costs 109500 Capitalized Interest 20,000 Bond Discount 2 500 TOTAL T1501000 The proposal provides that the City shall issue tax increment bonds in the approximate amount of $ 1509000 to finance the City's cost of the Project. Section 2. Findings and Amendment of Plan. After a public hearing duly noticed and held in accordance with Minnesota Statutes, Section 273.74, subd. 4, it is hereby determined to amend the Plan to the extent necessary in order to undertake the Project and finance the Project through the issuance of tax increment bonds. The Project as proposed is an economically feasible use of the Hutchinson Hotel and 0 comes within the framework of the Land Use and Program Objectives stated in the Development Program for Development District No. 4. The Project will result in the enhancing of the overall retail, commercial and office use of the downtown area of the City and provide rental housing for residents of the City and the surrounding area. 3. Findings. In connection with the Project and the amendment of the Plan approved in Section 2 hereof (the Plan, as amended) it is found and determined as follows: A. The Project will not occur through private investment in the reasonably forseeable future and therefore the use of tax increment financing is deemed necessary. B. The Plan, as amended, conforms to the general plan of redevelopment of the City as a whole. C. The Plan, as amended, will afford maximum opportunity, consistent with I the sound needs of the City as a whole for the redevelopment of the District by private enterprise. l ell J �e ad • • VALUATIONS Jurisdiction City of Hutchinson IMPACT ON TAX BASE Jurisdiction City of Hutchinson I.S.D. No. 423 McLeod County IMPACT ON MILL RATES Jurisdiction City of Hutchinson I.S.D. No. 423 McLeod County CITY OF HUTCHINGON FRANK FAY HOTEL REDEVELOPMENT TAX INCREMENT PROJECT Original Current Projected Assessed Value Assessed Value Assessed Value $54,189 $46,384 $285,058 Tax Base $44,863,754 74,573,566 182,067,941 Current Mill Rate 48.574 49.809 29.226 127.609 Original Assessed Value as Percentage of Jurisdiction .001208 .000727 .000298 Potential Tax Increment Generated $11,214 $11,499 $6,747 $29,460 Projected Assessed Value as Percentage of Jurisdiction .006353 .003822 • .001565 Potential Mill Rate Decrease if Development Occurred without Tax Increment Financina .25 mills .15 mills .04 mills • 6 • u 510 NORTH CENTRAL LIFE TOWER 445 MINNESOTA STREET ST. PAUL,MINNESOTA 55101 (15121227-8017 P. O. BOX 848 340 FIRST NATK>NAL BANK BUILDING ROCHESTER, MINNESOTA 55903 (507) 288 -3156 312 FIRST NATIONAL BANK BUILDING WAYZATA, MINNESOTA 55391 (612) 475 -0373 201 DAVIDSON BUILDING 8 THIRD STREET NORTH GREAT FALLS, MONTANA 59401 (408)727 -3832 DORSEY & WHITNEY A Parinemhip Including Prpfeswro l Co PaahOns 2200 FIRST BANK PLACE EAST MINNEAPOLIS, MINNESOTA 55402 ( 612) 340-2600 TELEX 29-0605 TELECOPIER: (612)340 -2868 JEROME P. GILLIGAN (612) 340 -2962 March 26, 1985 Mr. Gary D. Plotz City Administrator City of Hutchinson 37 Washington Avenue West Hutchinson, Minnesota 55350 Re: Amendments to Tax Increment Plan Dear Gary: 304 TRANSWESTERN PLAZA III 550 NORTH 31•' STREET P. O. BOX 109 84 LUNGS. MONTANA 59103 (408(252 -3800 SUITE 875 NORTH 1900 M STREET N. W. WASHINGTON, D C.20038 (202) 955 -1050 20C PARK AVENUE NEW YORK, NEW YORK 10168 (212) 972 -4433 30 RUE LA BOETIE 75008 PARIS, FRANCE 011 331 562 32 50 � X5262728 n � � r L' a V L--- T„ o. t„ Enclosed are ten copies of the latest draft of the Amendment to the Tax Increment Plan for the Hutchinson Hotel Project and seven copies of a resolution of the City Council which approves the Amendment. You will note that the Amendment and the Resolution contain various blanks which you will need to complete relating to the cost of the Project and the amount of tax increment bonds to be issued. Neither of these documents have been reviewed by Jim Schaefer so you should arrange to have Jim review them prior to the meeting if at all possible. If you have any questions or comments, please give me a call. Yours truly, Jerome P. Gilliga ` JPG:cmn Enclosures -s_Q,31 CERTIFICATION OF MINUTES RELATING TO DEVELOPMENT DISTRICT NO. 4 Issuer: City of Hutchinson, Minnesota Governing Body: City Council Kind, date, time and place of meeting: A meeting, held on March 26, 1985, at o'clock P.M., at the City Hall. Members present: Members absent: Documents Attached: Minutes of said meeting (pages) 1 through 3 RESOLUTION NO. RESOLUTION APPROVING AMENDMENTS TO THE DEVELOPMENT PROGRAM AND THE TAX INCREMENT FINANCING PLAN FOR THE DEVELOPMENT DISTRICT NO. 4 OF THE CITY OF HUTCHINSON, MINNESOTA I, the undersigned, being the duly qualified and acting recording officer of the City of Hutchinson, certify that the resolution attached hereto, as described above, have been carefully compared with the original records of the City in my legal custody, from which they have been transcribed; that the resolution is a correct and complete copy of a resolution approved by the governing body at the meeting; and that the meeting was duly held by the governing body at the time and place and was attended throughout by the members indicated above, pursuant to call and notice of such meeting given as required by law. WITNESS my hand officially as such recording officer and the seal of the City this day of March, 1985. (SEAL) Signature Gary D. Plotz, City Administrator Name and Title E • E Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION APPROVING AMENDMENTS TO THE DEVELOPMENT PROGRAM AND THE TAX INCREMENT FINANCING PLAN FOR THE DEVELOPMENT DISTRICT NO. 4 OF THE CITY OF HUTCHINSON, MINNESOTA. BE IT RESOLVED by the City Council of the City of Hutchinson, Minnesota, as follows: 1. Recitals. This Council, by resolution adopted October 14, 1980, designated a development district pursuant to Minnesota Statutes, Chapter 472A and a tax increment financing district pursuant to Minnesota Statutes, Sections 273.71 through 273.78. Both the development district and the tax increment financing district have been designated Development District No. 4 (the District). The Hutchinson City Council has previously approved a Tax Increment Financing Plan for •the District (the Original Plan). By Resolution No. 7140, adopted by the Hutchinson City Council on May 25, 1982, the Hutchinson City Council approved an amendment to the Plan (the 1982 Amendment). The Original Plan, as amended by the 1982 Amendment is hereinafter referred to as the Plan. Located within the District at the southwest corner of Main Street and Washington Avenue is the Hutchinson Hotel (the Hutchinson Hotel). It has been proposed that the Plan be amended to provide for the acquisition of the Hutchinson Hotel by the City and the sale thereof to a developer designated by the City at a reduced cost pursuant to a development agreement under which the developer agrees to renovate and rehabilitate the Hutchinson Hotel for commercial and residential use (the Project). The City's cost of the Project is estimated to be as follows: Land Acquisition $ Cost of Issuance and Administrative Costs Capitalized Interest Bond Discount TOTAL $ • The proposal provides that the City shall issue tax increment bonds in the approximate amount of $ to finance the City's cost of the Project. 2. Amendment of Plan. After a public hearing duly noticed and held by this Council in accordance with Minnesota Statutes, Section 273.74, subd. 4, it is hereby determined to amend the Plan to the extent necessary in order to undertake the Project and finance the Project through the issuance of tax increment bonds. The Project as proposed is an economically feasible use of the Hutchinson Hotel and comes within the framework of the Land Use and Progam Objectives stated in the Development Program for Development District No. 4. The Project will result in the enhancing of the overall retail, commercial and office use of the downtown area of the City and provide rental housing for residents of the City and the surrounding area. 3. Findings Under the Minnesota Tax Increment Financing Act. Purusant to Minnesota Statutes, Section 273.74, subdivision 3, it is hereby found that: (A) The Project would not reasonably be expected to occur solely through private investment in the reasonably foreseeable future due to the present high costs of financing and the high cost of acquiring and renovating the Hutchinson Hotel and therefore tax increment financing is deemed necessary; (B) The amendment of the Plan to the extent necessary • in order to undertake the Project and finance the Project through the issuance of tax increment bonds conforms to the general plan to the development and redevelopment of the City as a whole in that it aids in the renovation of an underutilized building in the downtown area of the City which requires substantial renovation and provides needed rental housing units for residents of the City and the surrounding area; and (C) The amendment of the Plan to the extent necessary in order to undertake the Project and finance the Project through the issuance of tax increment bonds will afford maximum opportunity, consistent with the sound needs of the City as a whole for the development and redevelopment of the District by private enterprise in that it serves as an inducement to a private party to acquire and renovate the Hutchinson Hotel, all of which benefits the residents of the City and the surrounding area by increasing the viability of the downtown area of the City and providing needed rental housing units. 4. Payment of Tax Increment Bonds. In accordance with Resolution No. 7714 no tax increment revenue generated from that area included in the District and currently designated Tax Increment Area Four, shall be used by the City to pay • any costs of the Project or to pay all or any portion of -2- the principal of or interest on any tax increment bonds issued by the City to finance the Project. Adopted by the Hutchinson City Council this day of , 1985 Attest: Mayor City Administrator The motion for the adoption of the foregoing was duly seconded by Member , and upon vote being taken thereon, the following voted in favor thereof: • and the following voted against the same: whereupon said resolution was declared passed and adopted and was signed by the Mayor and his signature was attested by the City Administrator. 9 -3- PUBLISHED IN THE HUTCHINSON LEADER THURSDAY, FEBRUARY 7, 1985 THURSDAY, FEBRUARY 14, 1985 PUBLICATION NO. 3376 NOTICE OF PUBLIC HEARING REGARDING THE MODIFICATION OF THE EXISTING TAX INCRMEENT FINANCING PLAN FOR DEVELOPMENT DISTRICT #4 PURSUANT TO MINNESOTA STATUTES, SECTIONS 273.71 TO 273.78 UTUEMW THE CITY OF HUTCHINSON, MINNESOTA NOTICE IS HEREBY GIVEN that the governing body of the City of Hutchinson, Minnesota (the "City"), will meet on February 26, 1985, at 8:00 p.m. at the City offices in Hutchinson, Minnesota, for the purpose of conducting a public hearing on a proposal to modify the existing Tax Increment Financing Plan for Development District #4 in accordance with the Minnesota Tax Increment Financing Act, Minnesota Statutes, Sections 273.71 to 273.78 inclusive. The governing body will consider the modification of the tax increment financing plan to provide for the acquisition of the following parcel: Lot 1, North 18 feet of Lot 2, Block 8, South half of the City of Hutchinson, County of McCloud. The Plan is also modified for the purpose of allowing for $285,000 additional bonded indebtedness. All persons interested may appear and be heard at the time and place set forth above. Dated: January 24 1985 BY ORDER OF THE CITY COUNCIL OF THE CITY OF HUTCHINSON By -Ac, Cit Adlniriktrator E 0 '.� �'q ('C�)' 41 to 304 TRANSWESTERN PLAZA III 550 NORTH 31.1 STREET P. 0. BOX 1179 BILLINGS, MONTANA 59103 (408) 252-3800 SUITE 575 NORTH IBDO M STREET N. W. WASHINGTON,D C. 20036 (202) 955 -1050 200 PARK AVENUE NEW YORK, NEW YORK 10156 (212) 972 -4433 30 RUE LA 80ETIE 75008 PARIS, FRANCE 011 331 582 32 50 16171 9 Mr. Gary D. Plotz City Administrator City of Hutchinson CO 37 Washington Avenue South O Hutchinson, Minnesota 55350 Dear Mr. Plotz : You have asked whether the City of Hutchinson may • pledge tax increment revenues to be derived from areas numbered 1, 2 and 3 in Development District No. 4 to the payment of tax increment bonds to be issued by the City in connection with the redevelopment of the Hutchinson Hotel (the "1985 Bonds "), without violating the provisions of Resolution No. 6637, adopted on November 12, 1980, which sets forth the terms and security for the City's $650,000 General Obligation Tax Increment Bonds, dated November 1, 1980 (the "1980 Bonds "), or the provisions of Resolution No. 7237, adopted on August 2, 1982, which set forth the terms and security for the City's $135,000 General Obligation Tax Increment Bonds of 1982, dated as of July 1, 1982 (the "1982 Bonds "). Under the provisions of Resolution No. 6637 and Resolution No. 7237, the 1980 Bonds and the 1982 Bonds are payable from the 1980 General Obligation Tax Increment Bond Fund (the "Tax Increment Bond Fund ") of the City established by Resolution No. 6637. The City has pledged to the Tax Increment Bond Fund the tax increment revenues to be derived from all four areas of Development District No. 4. Pursuant to Section 4.07 of Resolution No. 6637 the City reserved the right to issue additional bonds payable from the Tax Increment Bond Fund to finance costs of projects to be undertaken by the City within Development District No. 4 pursuant • to the development district program and tax increment financing plan. It was pursuant to this authority that the City issued the 1982 Bonds and made them payable from the Tax Increment Bond Fund. N DORSEY & WHITNEY A Pannen h,p InClUdinp Prpleoelpnal Co por9hdne 2200 FIRST BANK PLACE EAST 510 NORTH CENTRAL LIFE TOWER MINNEAPOLIS, MINNESOTA 55402 M5 MINNESOTA STREET ST. PAUL,MINNESOTA 55101 (612 340 -2600 (612)227 -8017 TELEX 29-0605 P. O. BOX 848 TELECOPIER : (8t2)340-28e8 340 FIRST NATIONAL BANK BUILDING ROCHESTER, MINNESOTA 55903 ( 507) 288-3t58 312 FIRST NATIONAL BANK BUILDING WAYZATA, MINNESOTA 55391 JEROME P. GILLIGAN (&2)475 -0373 (612) 300 -2962 201 DAVIDSON BUILDING 8 THIRD STREET NORTH GREAT FALLS, MONTANA 59401 )406)727 -3632 April 17, 1985 41 to 304 TRANSWESTERN PLAZA III 550 NORTH 31.1 STREET P. 0. BOX 1179 BILLINGS, MONTANA 59103 (408) 252-3800 SUITE 575 NORTH IBDO M STREET N. W. WASHINGTON,D C. 20036 (202) 955 -1050 200 PARK AVENUE NEW YORK, NEW YORK 10156 (212) 972 -4433 30 RUE LA 80ETIE 75008 PARIS, FRANCE 011 331 582 32 50 16171 9 Mr. Gary D. Plotz City Administrator City of Hutchinson CO 37 Washington Avenue South O Hutchinson, Minnesota 55350 Dear Mr. Plotz : You have asked whether the City of Hutchinson may • pledge tax increment revenues to be derived from areas numbered 1, 2 and 3 in Development District No. 4 to the payment of tax increment bonds to be issued by the City in connection with the redevelopment of the Hutchinson Hotel (the "1985 Bonds "), without violating the provisions of Resolution No. 6637, adopted on November 12, 1980, which sets forth the terms and security for the City's $650,000 General Obligation Tax Increment Bonds, dated November 1, 1980 (the "1980 Bonds "), or the provisions of Resolution No. 7237, adopted on August 2, 1982, which set forth the terms and security for the City's $135,000 General Obligation Tax Increment Bonds of 1982, dated as of July 1, 1982 (the "1982 Bonds "). Under the provisions of Resolution No. 6637 and Resolution No. 7237, the 1980 Bonds and the 1982 Bonds are payable from the 1980 General Obligation Tax Increment Bond Fund (the "Tax Increment Bond Fund ") of the City established by Resolution No. 6637. The City has pledged to the Tax Increment Bond Fund the tax increment revenues to be derived from all four areas of Development District No. 4. Pursuant to Section 4.07 of Resolution No. 6637 the City reserved the right to issue additional bonds payable from the Tax Increment Bond Fund to finance costs of projects to be undertaken by the City within Development District No. 4 pursuant • to the development district program and tax increment financing plan. It was pursuant to this authority that the City issued the 1982 Bonds and made them payable from the Tax Increment Bond Fund. N DORSEY & WHITNEY Page -2- Mr. Gary D. Plotz April 17, 1985 If the City were to determine to issue the 1985 Bonds the bond resolution adopted by the City Council for the 1985 Bonds will provide that they are being issued pursuant to the authority contained in Section 4.07 of Resolution No. 6637 to issue additional bonds payable from the Tax Increment Bond Fund for projects undertaken by the City in Development District No. 4 pursuant to the development district program and tax increment financing plan. The bond resolution would provide that only tax increment revenues in the Tax Increment Bond Fund derived from areas numbered 1, 2 and 3 of Development District No. 4 would be used to pay the 1985 Bonds. This would require the City to segregate in the Tax Increment Bond Fund the tax increment revenues derived from areas 1, 2 and 3 and the tax increment revenue derived from area 4. The issuance by the City of the 1985 Bonds in this manner will not violate the provisions of Resolution No. 6637 or Resolution No. 7237. You have informed me that the City is considering • making a deposit of tax increment revenue derived from area number 4 of Development District No. 4 to the debt service fund for the $780,000 General Obligation Parking Improvement Refunding Bonds of 1985, dated May 1, 1984 (the "Parking Bonds ") to pay the City's share of the Parking Bonds. The City Council has previously adopted a resolution authorizing the use of excess tax increment revenues to pay for the Parking Bonds. Resolution No. 7712 sets forth the terms and security of the Parking Bonds and provides in Section 5.01 that the Parking Bonds are payable from the 1984 Parking Improvement Refunding Bond Fund (the "Parking Bonds Bond Fund ") which the City is to maintain as a separate debt service fund until the Parking Bonds and all interest thereon are fully paid. This deposit of tax increment revenue would presumably be made by the City to the Parking Bonds Bond Fund. Under Section 7.05 of Resolution No. 7712 the City Administrator is to ascertain monthly the amount on deposit in the Parking Bonds Bond Fund. If the amount on deposit therein ever exceeds the aggregate amount of principal and interest due and payable from the Parking Bonds Bond Fund through the following May 1, plus a reasonable carryover amount not exceeding the greater of one year's earnings on the Parking Bonds Bond Fund or one - twelfth of the annual debt service payable therefrom, such excess shall be used to prepay and redeem the Parking Bonds or shall be invested at a yield less than or equal to the yield on DORSEY & WHITNEY + Page -3- Mr. Gary D. Plotz April 17, 1985 the Parking Bonds. This provision is included in Resolution No. 7712 to evidence the restrictions on the investment of funds in the Parking Bonds Bond Fund under the arbitrage regulations promulgated under Section 103(c) of the Internal Revenue Code of 1954, as amended. If the deposit in the tax increment revenues to the Parking Bonds Bond Fund causes the amount in this Fund to exceed the amount provided in Section 7.05 of Resolution No. 7712, such excess must either be used to prepay and redeem Parking Bonds or be invested at -a yield less than or equal to the yield on the Parking Bonds. Since the Parking Bonds are not prepayable until May 1, 1991, at this time the only option for the City if this amount exceeded would be to restrict the yield on the investment of the excess funds in the Parking Bonds Bond Fund to the yield on the Parking Bonds. The yield on the Parking Bonds for this purpose was determined at the time of issuance of the Parking Bonds to be 10.4% per annum. If it is necessary to restrict the yield on the investment of funds in the Parking • Bonds Fund such investment must be made in compliance with the "market price" rules under the arbitrage regulations. Should you have any further questions relating to the matters addressed in this letter, please do not hesitate to call me. JPG:cmn cc: James Schaefer William Fahey E Yours truly Jeromi /C-ill' an r V A.O. (Tony) Victorian (County Assessor) January 8, 1985 Office of MCLEOD COUNTY ASSESSOR Court House Glencoe, Minnesota 55336 Mr. Frank Fay Frank J Fay Realty Inc. 126 Main S. Hutchinson, MN 55350 Dear Frank, Based on the rental information you furnished this office on the proposed renovation of the Hutchinson Hotel I made the following tax estimates. Using the income from the apartments and retail area and Fallowing for expenses etc. the estimated tax would be $33,819.58. I am ing the current 1984 Hutchinson City mill rate of 118.639. Telephone 864.5559 However based on the current level of assessment in Hutchinson City and allowing for an adjustment in value for the commercial property the tax would be $26,398.84. Sincerely, 1 A. 0. Victorian LO f / N, /10 Count;: Assessor AOV /ar CC: Gary Plotz City Administrator Hutchinson, MN FPJ 01 J Mike Saxton Truckers Sheehy Constructors Inc. Minneapolis, MN NEXA/ r'RO 2Gti Ax 61 39y— 7,3ya. ,33iP?_7139 ,gsE� s v ,41- u E-- 6� 3c7 X139,2- 7Xcs @ 1J�,639�/ r McLeod County Equal Opportunity Employer 00l c27 9 (612) 587 -5151 CITY OF HUTCHINSON tiv ,-_JlNSON NIAN ti5 M E M O R A N D U M DATE: April 19, 1985 TO: Mayor & Council_ ----------- - - - - -- FROM: Gary Plotz SUBJECT: QUESTIONS FROM JAMES DEMEYER SUBMITTED TO—THE—CITY COUNCIL ------------- - - - - -- - - -- ON MARCH 26th, 1985 The objections raised by James DeMeyer are on file, and the parties that have provided the various documents within your packet on the Frank Fay poject have been notified. These parties include: • Attorney Stefanie Galey, Holmes & Graven Attorney Jerry Gilligan, Dorsey & Whitney Attorney James Schaefer, City Attorney Mr. William Fahey, Ehlers & Associates Hutchinson Housing Authority Community Development Corporation Frank Fay, Developer The Hutchinson Housing Authority has responded to question Ill page 1, and questions X15, 6, 7, 8, 9, 10, 16 and 18 of page 2. Frank Fay has stated he has provided verification of ownership to the City Auditor that answers questions #1, 2, 3 and 4. He is requesting confidentiality of these materials. Question #11 cannot be answered at this time. The valuation is set by the County Assessor. Question #12 regarding values are shown by Bill Fahey in the tax increment valuation estimates; namely, an "estimated" completed assessed value of $285,058. See attached sheet. Question #13 regarding transfer of the Parkview Plaza property limitations will be proposed by the City Attorney, similar to the past limitations on the S & L project's development agree- ment. Question #1 — Ownership is proposed as Parkview Plaza Limited Partnership. Holmes and Graven can respond further at the Council meeting, if desired, on either the ownership or rental questions raised. QUESTIONS /JAMES DEMEYER April, 19, 1985 PAGE 2 Question #15 - Frank Fay has stated there is no relocation. Question 0116 - The Community Development Board members are: Ron McGraw, Art Cooper, Don Glas, Tom "Buzz" Burich and Glenn Matejka. Question #17 Regarding minutes - The community minutes are placed in the Council packet subsequent to the CDC meetins. John Bernhagen can respond or review the minutes if desired. Question #19 regarding ownership is a bond counsel question. Jerry Gilligan has provided a letter on April 17, 1985. Question 0120 - The types of guarantees are in the proposed developers_' agreements. See "Contract for Sale of Land for Private Development" and "Assessment Agreement" within Council packet. Jim Schaefer will comment on this question. Question 1121 - refer to response in question 0120. Question 1122 - Bond Counsel has advised the City on all time - frames and will be present at the meeting (Stefanie Galey). Question 1123 - Regarding leased parking, the City Council has requested • a survey (enclosed in packet); and the proposed leased parking spaces on the west side of Franklin, adjacent to the Flinn /White dental offices, is a parking lot purchased several years ago, prior to the downtown parking financing. • Hutchinson City Council ATTN: Pat Mikulecky Hutchinson, MN 55350 In consideration of the fact that due to the results of an auto accident of May 23, 1984, my health is such that I am not able to be present at the hearings as it relates to that which is commonly known as "The Hutch Hotel ", Hutchinson, MN. I hereby request this being entered into the hearing minutes on the Housing Revenue Bonds and Tax Increment Financing March 26, 1985. I have asked Alderman, Pat Mikulecky to read the following: MAYOR STEARNS AND FELLOW ALDERMEN: I have recently been informed that the present owner of what is commonly known as the Hutch Hotel property is requesting tax increment in the amount of $ 285,000.00. He's also including a request for the City of Hutchinson to lease a parking lot, this in my opinion is in gross excess of common courtesy. With information obtained from the McLeod County Court House, the estimated market value for the Hutch Hotel for 1984 was $ 128,800.00, how can a proposed purchase of $ 285,000.00 be justified? Mr. Fay is a real estate broker and should have knowledge that apartment units, including land and garages are able to be provided at a cost of approximately 28,000 - 32,000 dollars per unit, new! I have not seen any reports as to the existing tenants on the main floor of the building, vacating their leased areas, therefore, based on that, there would be no new tenants of the main level. The super structure is being left in place and not changing substantially the esthetics value and /or character of the property. It would appear that based on the amount of housing units being provided, that the request for tax increment funds and the parking lot would be approximately half of what a new unit could be built for. Without tax increment financing all the new generated tax dollars would go for the operations of the city, county, and school district # 423. The fact of the upper levels of the Hutch Hotel being shut down should have no bearing on these financing requests. The building was purchased accordingly and Mr. Fay choose not to maintain the building, to meet the standards as established. As reported the project has previously been approved by the Hutchinson Community Development Corporation and the Hutchinson Redevelopment Authority without having provided a total disclosure as to how the project and financing would affect the tax payers of Hutchinson. With information reported in the Hutchinson Leader, I don't think it's proper to use the Hutchinson city name without a disclosure as to the liabilities and costs incurred by the city which may affect the tax payers. This is improper and unjust. Why is the Hutchinson Housing and Redevelopment Authority becoming involved in privately owned ventures? With a management rate of • $ 250.00 per unit; per year or a total of (19 x 250) $ 4,750.00, who will benefit? Page 2 At a estimated value of approximately $ 30,000.00 per living rental unit including the value of the parking lot and the tax increment funds, how much more or less than S 40,000.00 per year would the tax payers be contributing to Frank Fay or his heirs or assigns? Yes, could this be approximately $ 40,000.00 per year or yes, could this be a total benefit of $ 800,000.00 to Frank Fay? Why is it such that the tax payers have to request this type of information when it should be provided total and complete through staff and /or organizations approving a project requesting tax dollars. I am not familiar with Mr. Fay supporting the renovation of the Old Armory or the development of the Hutchinson Mall for IRB bonds, how can he now justify the request he has made? With information provided, the expansion of the Hutch Hotel that is being proposed does not include for a competitive bid, therefore, profit costs, etc., are at the discretion of those that develope it. In my judgment, what is being requested is a request of the tax payers to subsidize a project which is already owned by the party associated with the development. To manage and subsidize a project for Frank Fay, who in my opinion, is a clever speculator, not a developer, is unjust to those who have developed and menage their own property at their own expense. Affidavits to the following listed items, should be obtained, then and only then can a proper hearing be provided. 1. Does Mr. Fay owp the ropernt{y, commonly known as the Hutch Hotel? "r i^ ' %•/ I tJ P.. n f! ( f f� _,y is 1/-/1�'�- i- �F}il1 mil 2. Who did Mr. Fay purchase the property from? 3. How much did Mr. Fay pay for the at the time of purchase? AIA `property 1 4. How much was applied to the down payment at }he time of ,Purchase? .%rt)[i f/f. c-✓� ��F1��CiJ L 5. Who will receive the $ 4,750.00 per year for managing the property? 6. What is the occupancy factor for Park Towers for the year 1984? 7. What is the financial statutes for Park Towers for the year 1984? 8. What is the occupancy factor for the Evergreen Apartment complex for the year 1984? 9. Is the Housing Authority establishing a rate of, how many dollars per unit, per month, guaranteed by the government, for the repayment of the debt? 10. Is the dollar value that may be established by the Housing Authority then going to be subsidized by tax dollars? 11. What is the valuation estblished for each completed apartment unit? 12. What is the appraisal valuation estimated by the County Assessors office for the completed project? 9 13. What provisions are in the agreement so that the property can not be exchanged, sold or transferred prior to all bonds and /or mortgages . for said project paid in full? r 14. Who will own the Hutch Hotel property after the city has provided rental of the property and when the tax payers may have guaranteed . the rent income ?�,; Page 3 15. How much are the relocation costs ? 16. What are the names of the board members of the Hutchinson Housing 16 and Redevelopment Authority? 17. What are the names of the board members of the Hutchinson Community Development Corporation? 18. With the minutes provided the city council as to the claimed support given by the Hutchinson Housing and Redevelopment Authority and the Hutchinson Community Development Corporation, which members voted their support? d ;� 19. What statutes are provided, whereby a property owner already' N� claiming ownership of a property, has the right to obtain taxY increment funds as it• relates to the acquiring of ownership of a property for development which already exists. 20. What will happen if the improvement of the project is not completed to the value of $ 1,500,000.00? d '� 3' :k ��, ✓� J , j� u� '"`� 21. What guarantee by affidavit that the improvements proposed will not be reduced after the hearing is closed and the granting of the bonds, which if said improvements are reduced, would in effect - change the valuation established at the time of the hearing? 22. What is the requirement, regarding the calling of a hearing as to the time frame required by law as it relates to the $ 600,000.00 housing bond, $ 500,000.00 Industrial Revenue Bonds, and the /, j $ 285,000.00 tax increment financing? ,, • 23. What collateral is pledged to repay the proposed leased - Vd,,a parking lot? I hereby object to the providing 3f tax increment financing for this project. The leasing of any city parking facilities, and having the HRA manage the housing units. James G. DeMeyer 364 Larson Street Hutchinson, MN E HUTCHINSON HOUSING AND REDEVELOPMENT AUTHORITY 133 Third Avenue DW, Hutchinson, Min���ta 55350 Telephone: (612) 587 -2166 Ul EQUAL HOUSING c / Q� IC - OPPO / , OPPORTUNITY CY irJ ��S L - April 3, 1985 Mr. Gary Plotz, City Administrator 37 Washington Avenue West Hutchinson, MN 55350 Dear Gary: The following listing provides you with the information required to answer the inquiries made by James G. Demever to the Hutchinson HRA in its involvement in the Hutch Hotel Rehab Project. These responses were adopted at a special HRA Board meeting on April 2, 1985. Response to Question Last Paragraph Page #1: The Hutchinson HRA has been the management agent for the privately owned Evergreen Apartment Project since January 1982, and is paid a management agent fee for its services of approximately $250.00 per unit per year. These rates are established and approved by the Minnesota Housing Finance Agency on an annual basis, and the Hutch Hotel Rehab Project will be managed under the same principles. All HRA management expenses are covered by the management fees received. Response to Question #5 Page #2: The Hutchinson HRA as management agent for the residential apartment units. Response to Question #6 Page #2: 100% occupancy, approximately a six month wait to be admitted. Response to Question #7 Page #2: The Park Towers annual financial report is included in the consolidated audit for the City of Hutchirson,and information regarding it is obtainable from the audit. Response to Question #8 Page #2: 100% occupancy, approximately an eighteen month wait to be admitted. Response to Question #9 Page #2: The Hutchinson ERA has no liability, nor has underwritten or been obligated to repay any of the deb, of the Hutch Hotel Rehab Project. The H.RA will be hired as management agent only for the residential section of the project. Response to to Question #10 Page #22Page #2: No. refer to the response to question #9. Response to to Question #l6 Page #3Page #3: The membership information is posted at all times in the main lobby cf City Hall and is as follows: Paul L. Ackland, Chairman; Garey Knudsen, Vice - Chairman; Mildred Nelson, Secretary /Treasurer; Phyllis Hegrenes, Commissioner; and Don Krasen, Commissioner. HUTCHINSON HOUSING AND REDEVELOPMENT AUTHORITY 133 Third Avenue S.W. • Hutchinson, Minnesota 55350 Telephone: (612) 587 -2168 ti EQUAL HOUSING OPPORTUNITY Page Two - Letter Gary Plotz April 3, 1985 Response to Question #18 Page #3: See attached copy of the appropriate section of the minutes of the January lb, 1985 meeting. The above concludes our responses to Mr. Demeyer's inquiries and are inteftded to provide the information needed by the Hutchinson City Council if necessary in any formal response. • Enclosure 0 Sincerely, �fL ttclC� Carol Haukos Executive Director Page Three - Minutes HHRk Regular Board Meeting January 16, 1985 to additional discussion Garay Knudsen moved that the HRA aDDrove a fifteen year ement t antract specification would be satisfactory to the partiee concerned, and the rata a or a ecision would be based on Is desire to eee _ a betterment of e downtown diefrTet that would re u1t Srom the pro _1ect._ EE an increase in strata call located D"U.dAts. Pa Ac and seconded. Gaza Snudsen, Emil Ankland Mildred Nelson and Don Krkian voted iiLtavnr _ Phyllis Hearenes noted against Motion carried four votes to one._ The director was instructed to formally notify Mr. Fay of the board's decision. VII. OTHER BUSINESS Paul Ackland informed board members that he had been notified by Travelers Insurance that--the workmen's compensation rates for 1985 had been increased dramatically. This increase was the result of the State of Minnesota changing control of the rates allowed. The billing for our 1985 insurance would reflect the increase from 92.60/ :100 to i3.77/$100. VIII. ADJOURNMENT Chairman Ackland called for adjournment. Meeting adjourned. Recorded by Carol Haukos, Executive Director. 20. 1985 2:00 P Mildred Nelson, Secretary /Treasurer • (612) 587 -5151 oe "37 WASHINGTON AVENUE WEST HUTCHINSON, MINN. 55350 11� February 1, 1985 Ms. Stefanie N. Galey, Atty. Holmes & Graven 470 Pillsbury Center Minneapolis, MN 55402 RE: F & T Joint Venture Project Rehabilitation of Hutchinson Hotel Dear Stefanie: • Attached is a copy of Hutchinson's Tax Increment Finance Plan as of the October 1980 printing. There have been some minor amendments; however, this is the basic plan. The "findings" to qualify the district as "redevelopment" are available if you desire to request this additional information. Sincerely, CITY OF HUTCHINSON .rA Gary e. , otz City Administrator GDP: ms Encl. cc: Kenneth B. Merrill, Finance Dir. Bill Fahey, Ehlers & Associates r1 LJ r (612) 587 -5151 CITY OF HUTCHINSON 37 h✓ASHINC`0�% z VV'EST HUTCHlNSON � M E M O R A N D U M DATE: April 12, 1985 TO: Atty. James Schaefer, Frank Fay, County Assessor Tony Victorian, - ----- - - - - - - - - - - - - - - - - - - - - - - - - County Attorney Pete Kasal FROM: - Gary .D,Plet7. St A-didnia-tutorr— - - - - - - - - - - - SUBJECT: Draft Copy of Contract for Sale of Land for Private Development; ------------------------------ and Assessment Agreement for the Proposed Hutchinson Hotel Project Enclosed are the documents for your review of the anticipated Hutchinson Hotel project. These documents will be placed in the City Council packet on April 18, 1985 • and will be considered by the Council on April 23, 1985. I would appreciate a memo by April 18, 1985 from the City Attorney concerning his evaluation of the documents. In relation to the proposed Assessment Agreement, I would appreciate the County Assessor and County Attorney reviewing the agreement(s) and specifically Exhibit C. If there are any objections executing Exhibit C, please advise the City Attorney James Schaefer immediately prior to April 18, 1985. The documents were drawn up by Atty. Jerry Gilligan of Dorsey Whitney law firm (612) 340 -2962, and I understand they are boil -plate agreements utilized in other projects by the Dorsey Whitney law firm. /ms cc: Mayor & City Council Ken Merrill, Finance Dir. Bill Fahey, Financial Consultant John Bernhagen, Comm. Develop. Corp. Exec. Dir. 11 (612) 587 -5151 ff CITY OF HUTCHINSCN WASHINGTON AVENUE WEST CHINSON. MINN. 55350 April 19, 1985 The Hutchinson City Council RE: Hutchinson Hotel Assessment Agreement; Contract For Sale of Land For Private Development Dear Councilmembers: I have been asked to comment on the above - mentioned documents. The assessment agreement is authorized by Minnesota Statutes Section 273.76, Subdivision 8. A copy of that section is included as Exhibit D of the Assessment Agreement. Highlights of the agreement are: • 1.02 - The developer and the City agree to the purchase and sale of the proposed property with the city to finance the purchase of the property through tax increment bonds. 1.04 - The city pledges that the debt service on the bonds will be payable primarily from the increments derived from all the taxable property in the district with the exception of the increments of area four. It should be remembered that the economic analysis of this project indicates that it should be self - supporting, that is, the increments generated by this project alone should be sufficient to cover the debt service on the bonds. 2.01 - The developer agrees for taxing purposes the facility shall deem to be completed as of January 1, 1986 whether or not the project is actually completed. 2.02 - The developer agrees that nothing he does shall reduce the minimum market value of the property for tax purposes to below a certain a value. This value should be sufficient to pay the bond through the increments generated. 2.03 - The developer agrees that the minimum market value agreed upon is a fair and accurate value of the property's worth after renovation and further agrees that in the future assessed values w'_11 not be less than values agreed upon • in this document. 2. "�4 - The McLeod County Assessor is permitted to assess a higher market value than that agreed upon in this document. The Hutchinson City Council • April 19, 1985 Page Two 3.02 - This provides that recording of any documents is the developer's responsibility. 5.01 - This binds the developer and all his subsequent holders. This is the reason for requiring that this document be recorded. Exhibit C of the Assessment Agreement is a certificate signed by the McLeod County Assessor. This document has been presented to the McLeod County Attorney and the McLeod County Assessor for their examination. I have discussed this matter briefly with the assessor and assuming the documents provided him do indicate the proper market value there would appear to be no problem with obtaining the signature of the assessor on this document. The Contract for the Sale of Land covers the purchase and the sale of the real estate. Its highlights are as follows: 2.04 - The developer shall pay all taxes subsequent to the date of the closing. Since the city will only purchase the property if all taxes prior to the date of closing have been paid, there will be no tax liability on the city. 2.06 - The developer waives any rights it may have to require title evidence or examination of title. 3.01 - The city agrees to purchase the property and finance the cost through the proceeds of the bonds. 3.03 - The developer agrees that the proceeds of the bonds will not be disbursed until he has provided the city with all necessary documents showing his ability to pay the cost of acquiring the property and constructing the improvements. 4.01 - Among other things, this provides that the developer shall not transfer the property to any tax exempt entity. If you should so desire, it is possible to place a limitation on this ability of the developer to transfer the property to any other entity for a certain time frame. 4.02 - The developer must comply with all local laws, ordinances, rules and regulations concerning the improvements to be made to the property. 4.07 - This again provides for specific periodic increases in the assessed market value. 4.08 - This provides that the developer is responsible for payment of administrative expenses. The Hutchinson City Council April 19, 1985 Page Three 5.02 - This provides that the covenants run with the land and bind any subsequent holder of the property. 5.03 - This paragraph restricts the transfer of the property or any subsequent encumbrances until after a completion certificate has been issued. Again, a longer period could be installed. 5.06, 5.07 - These paragraphs provide for the insurance and a method of disbursing any insurance proceeds. 6.01 - This paragraph provides for the disbursement of tax increment revenues other than the increments derived from area four. 6.02 - This provides for a partial bond guarantee by the developer. If any of you have any questions concerning this document, please feel free to contact me directly. Sincerely yours, • CITY OF HUTCHINSON JAMES H. SCHAEFER By / James H. Schaefer Hutchinson City Attorney JHS:dlp • (612) 587 -5151 CITY OF HUTCHINSON 37 WASHINGTON AVENUE WEST HUTCHINSON, MINN. 55350 M E M 0 R A N D U DATE: April 12, 1985 To: Mayor & Council From: Ken Merrill - Finance Director Subject: Parking Bonds Since 1981, our parking program has gone through numerous changes. It would appear 1985 will just about end the construc- tion phase of the program. In 1984, a bond issue was sold - proceeds of which were used with excess money from 1981 parking bonds to defease the 1981 Parking Bonds. Thirteen years remain to be paid on the program of which the city is committed to share the assessment. Roll 152 adopted the portion to be assessed ($392,000). Appeals and corrections have reduced this number. As of December 31, 1984, collection to be made, including appeals, was $291,000. City portion of the project originally was $260,000. To this amount, the interest must be added, and, of course, pending nonpayment of the assessment, the nonassessed portion must be paid by the city. I have assumed this would be paid from the tax increment and not ad- valorem taxes. Because of delinquency factors and paybacks, exact amounts needed for the city portion are not totally clear. In our tax increment project, we have collected in area 4 a total of $254,000; plus some interest could be assigned. This amount has not yet been transferred to 1984 Parking Bond. In 1985, there is the collection of $2139249 anticipated; it would be somewhat less due to delinquency. This would give us a total of $467,249• If 1986 is similar in dollars as 1985, we should have enough money for the 1984 bond fund. By providing this money, we would allow a cushion for the fund. Money left over, if any, could be given back for the County to redistribute to the taxing jurisdiction, when all bonds have been paid. If we out the amount back and eliminate the area too soon, there could be the possibility of needing an ad- valorem • tax to make up the difference, which would seem to be against the intent of the council. SQ�3� -5151 612) 587 CITY OF HUTCHINSON 37 WASHINGTON AVE(\IL,E VEST hUT CHASON, MiNN 55350 M E M O R A N D U M DATE: April 12, 1985 To: Mayor & Council From: Ken Merrill - Finance Director Subject: Tax Increment Status As of December 31, 1984, our tax increment fund for the City of Hutchinson shows the following information: Cash Balance Cash on hand: Remaining 12/31/84 Area I $ 67044 * Area II 1201789 * • Area III 620911 * Area IV 2549175 Interest Earned 45,387 Total $55 *Using % of balance compared to total $'s generated. I II III IV TOTAL 1984 Capture value 226,754 594,202 216,144 115289967 215669067 Net received 269902 70,496 259643 1819395 304,436 1985 Capture value 448,586 9419634 1929761 1,6759784 39258,772 1985 Taxes anticipated 57,084 1199826 242530 2139249 414,689 (Dollars actually received will be less due to delinquency.) (Payments in 1985 will be $93,000 from the two tax increment bonds.) Indebtedness (Outstanding as of 12/31/84) Principal and Interest 1980 Tax Increment Bonds (Evergreen /railroad) 937,043 1982 Tax Increment Bonds (S & L Rehab) 2379144 $1,174,187 Area IV only • 1984 Parking Bonds 660,000 While our cash balance is good, we must be careful as the future, due to legislative changes, creating problems for the program. Charles Bail ly & Company Certified Public Accountants Parkdale Four. Suite 300 5353 Gamble Drive Minne&polis. Minnesota 55416 Telephone (612) 546 -0404 April 17, 1985 Mr. Gary Plotz City Administrator City Hall 37 Washington Avenue West Hutchinson, MN 55350 Dear Gary: x/171 P I92nc; a\ _ A N f.fclvi.D s m ' �_'? I•l£ Offices in Minnesota. Montana. North Dakota and South Dakota Associates in principal cities of United States, Canada. Mexico. Europe and Asia As requested, we have read the financial statements forwarded to us by Frank J. Fay, Curtis E. Burckhardt, and the projection prepared by Michael Saxton of Trucker Development. The above are parties associated with the Jorgenson Hotel development proposal. The information submitted to us is as follows: • 1. Statement of Financial Condition, Frank J. Fay, January 31, 1985 and 1984 (compiled) 2. Statement of Financial Condition, Curtis E. Burckhardt, Years Ended December 31, 1983 and 1982 (compiled) and 1984 Federal Individual Income Tax Return. 3. Development Analysis for Commercial- Residential Building (Hutchinson), including 10 -year projections. This data was not compiled or reviewed by an independent accountant. It was submitted by Trucker Development. Analysis of above information: Personal Financial Statements These statements are representations of each individual shown above and were not subject to audit or independent verification. Assuming Mr. Burckhardt's representation that his December 31, 1984 equity is not less than his December 31, 1983 equity,the combined net equity of the parties in 1 and 2 above, exceeds the total bond liabilities for the entire project. Development Analysis - Commercial - Residential Building . Time requirements have limited our analysis to oral inquiries regarding some of the assumptions used in the proposal and projection. Pertinent items resulting from these inquiries are listed on the following page. i Mr. Gary Plotz April 17, 1985 Page Three i 3. Real Estate Taxes and Tax Increment Financing Real estate taxes estimated in the projection are $20,000 vs $26,400 as estimated by the County Auditor. Also, the tax increment bonds are shown at $200,000 and this amount exceeds the amount ($150,000 to $160,000) which had been calculated as the limit in relation to the increment in property taxes for paying the bonds and interest. 4. In addition, it appears that a fee of $12,600 to Community Development has not been provided for in the projection. Conclusion Although the projection demonstrates the feasibility of the project, further verification and revisions, should be made. 1. The commercial leases should be documented with firm commitments. 2. The sale of the building and use of proceeds to pay off existing indebtedness should be clearly shown so that the transaction can be accomplished. 3. The tax increment financing, issuance of bonds and relationship of interest and principal pay -off to the increment in property taxes should be clarified and defined. It should relate to the projection for dollar amounts of real estate taxes in operating expense and the total amount of the bonds. 4. Fees to Community Development should be included in the projection. In addition the following items require consideration: 1. Both general partners should be responsible for completing the project and for shortfalls in the financing, including the tax increment financing. This should be in a signed document. The developers have stated there will he a performance bond on the project - it should be required. 2. Communication with the Housing and Redevelopment Authority should be made to establish a basis for the reasonableness of the projections on the residential units. 3. With adequate equity, requiring personal guarantees would be meaningful. A judgment as to feasibility of the project rests upon the resolution of the items listed above. Once resolved, the project can be demonstrated as feasible. U • h. Vacant 2,875 12,590 Leases on the residential units are to be the responsibility of the Housing and Redevelopment Authority which would be under contract to manage these units. 2. Sale of Existing Building to Partnership The projected sale of the property prior to construction assumes that all indebtedness including liens on the property will be • paid. Some of these items are: 1983 Property Taxes $11,100 1984 Property Taxes 9,758 Utility Billings (Delinquent) 15,723 Mortgages /Notes Not Verified Mr. Gary Plotz April 17, 1985 Page Two 1. Lease /Rental The status of leases at April 17, 1985 is: New Space - Present Lease Lessee Square Feet Lease (Signed) Comments a. Dress Shop 270 Month to Month No b. Koch Jeweler 1,150 To 1989 Covered c. Navy 545 To July 1, 1966 Covered Extension subject to funding. d. Rexall Drug 3,870 To 1987 No Letter of confirma- tion on revised lease. e. Community Credit 1,080 To July 1, 1985 No Signed 5 year lease in transit. f. Fay Realty 2,000 None No 5 year lease in process. g. Hairdressers 800 Month to Month No 5 year lease in process. h. Vacant 2,875 12,590 Leases on the residential units are to be the responsibility of the Housing and Redevelopment Authority which would be under contract to manage these units. 2. Sale of Existing Building to Partnership The projected sale of the property prior to construction assumes that all indebtedness including liens on the property will be • paid. Some of these items are: 1983 Property Taxes $11,100 1984 Property Taxes 9,758 Utility Billings (Delinquent) 15,723 Mortgages /Notes Not Verified Mr. Gary Plotz - - -- - - - - -- - April 17, 1985 Page Four We have not audited, reviewed or compiled any of the financial information sumbitted to us nor have we examined any supporting documentation used to prepare the financial information and do not express any opinion as to the correctness of the financial information listed in the first paragraph of this letter. Sincerely, CHARLES BAIIL-L-Y & COMPANY By 6 &� .z-4-;!f C.P.A. Charles L. Rolan o, Jr. CLR:bjs • • Ir� 0 DORSEY & WHITNEY A Partnemh,p Including Pr0less,onal COrpd tpons 2200 FIRST BANK PLACE EAST MINNEAPOLIS, MINNESOTA 55402 (612) 340 -2600 TELEX 29 -0605 TELECOPIER : (612)340-2868 JEROME P. GILLIGAN (612) 340 -2962 April 8, 1985 Mr. Gary D. Plotz City Administrator City of Hutchinson 37 Washington Avenue West Hutchinson, Minnesota 55350 Mr. James Schaefer 105 Second Avenue Southwest P.O. Box 363 Hutchinson, Minnesota 55350 Mr. William Fahey Ehlers & Associates 120 First National Bank -Soo Line Concourse Minneapolis, Minnesota 55402 Re: Development District No. 4 Hutchinson Hotel Project Gentlemen: 304 TRANSWESTERN PLAZA HI 550 NORTH 3W STREET P. O- BOX 1179 BILLINGS, MONTANA 59103 (4061252 -3800 SUITE II NORTH Ie00 M STREET N. W. WASHINGTON. D C- 20036 (202) 955 -1050 200 PARK AVENUE NEW YORK, NEW YORK 10166 (212) 972 -4433 30 RUE LA BOETIE 75000 PARIS, FRANCE 011 331 562 32 50 O n J1, Enclosed is a draft of a Contract for Sale of Land for Private Development and an Assessment Agreement for the proposed Hutchinson Hotel project. Please review these agreements and call me with any questions or comments you may have. Yours truly, � L )) er Ye P. Gil' igan JPG:cmn J/ Enclosures 51C NORTH CENTRAL LIFE TOWER 45 MINNESOTA STREET ST. PAUL,MINNESOTA 55101 ( 812 ) 227 - 8017 P O Box 848 34(1 FIRST NATIONAL BANK BUILDING ROCHESTER, MINNESOTA 55903 15071288 -3156 312 FIRST NATIONAL BANK BUILDING WAYZATA, MINNESOTA 55391 t 612) 475 - 0373 201 DAVIDSON BUILDING 8 THIRD STREET NORTH GREAT FALLS, MONTANA 59401 406)727 -3632 Ir� 0 DORSEY & WHITNEY A Partnemh,p Including Pr0less,onal COrpd tpons 2200 FIRST BANK PLACE EAST MINNEAPOLIS, MINNESOTA 55402 (612) 340 -2600 TELEX 29 -0605 TELECOPIER : (612)340-2868 JEROME P. GILLIGAN (612) 340 -2962 April 8, 1985 Mr. Gary D. Plotz City Administrator City of Hutchinson 37 Washington Avenue West Hutchinson, Minnesota 55350 Mr. James Schaefer 105 Second Avenue Southwest P.O. Box 363 Hutchinson, Minnesota 55350 Mr. William Fahey Ehlers & Associates 120 First National Bank -Soo Line Concourse Minneapolis, Minnesota 55402 Re: Development District No. 4 Hutchinson Hotel Project Gentlemen: 304 TRANSWESTERN PLAZA HI 550 NORTH 3W STREET P. O- BOX 1179 BILLINGS, MONTANA 59103 (4061252 -3800 SUITE II NORTH Ie00 M STREET N. W. WASHINGTON. D C- 20036 (202) 955 -1050 200 PARK AVENUE NEW YORK, NEW YORK 10166 (212) 972 -4433 30 RUE LA BOETIE 75000 PARIS, FRANCE 011 331 562 32 50 O n J1, Enclosed is a draft of a Contract for Sale of Land for Private Development and an Assessment Agreement for the proposed Hutchinson Hotel project. Please review these agreements and call me with any questions or comments you may have. Yours truly, � L )) er Ye P. Gil' igan JPG:cmn J/ Enclosures 0 CONTRACT for SALE OF LAND FOR PRIVATE DEVELOPMENT in DEVELOPMENT DISTRICT NO. 4 CITY OF HUTCHINSON MCLEOD COUNTY, MINNESOTA between • CITY OF HUTCHINSON, MINNESOTA and Dated , 1985 n ►J • • THIS AGREEMENT, day of 1985, municipal corporation of made and entered into as of this _ between the CITY OF HUTCHINSON, a the State of Minnesota (the City), (the Developer); and WITNESSETH THAT, in the joint and mutual exercise of their powers, and in consideration of the mutual covenants herein contained, the parties hereto recite and agree as follows: Section 1. Recitals. 1.01. Designation of Development District and Adoption of Development Program. The City has designated a development district in the City denominated Development District No. 4 (the Development District) and has approved a development program for the Development District (the Development Program) pursuant to and in accordance with Minnesota Statutes, Chapter 472A (the Act). 1.02. Creation of the District. The City has established a tax increment financing district (the District) within the Development District and authorized the financing of the Development Program pursuant to a Tax Increment Financing Plan (the Financing Plan) pursuant to and in accordance with Minnesota Statutes, Sections 273.71 through 273.86 (the Tax Increment Financing Act). 1.03. Implementation. The City Council of the City (the City Council) has authorized and directed the officers of the City to take all actions necessary to implement and carry out the Development Program, subject only to such approval by the City Council as may be required by the Act. The Development Program proposes that the City issue its General Obligation Tax Increment Bonds (the Bonds) to finance the capital and administrative costs of the Development District. 1.04. Acquisition of Property. The City has determined that it is necessary, in order to accomplish the purposes specified in and to carry out the Development Program, for the City to acquire certain property located in McLeod County, Minnesota described in Exhibit A hereto (the Property), and to sell the Property to the Developer for redevelopment in accordance with the Development Program and pursuant to the Act. The City agrees to purchase the Property from pursuant to a Purchase Agreement, a copy of which is attached hereto as Exhibit B (the Purchase Agreement), in accordance with its terms. 6 1.05. Original Assessed Value; Tax Increment. The County Auditor of McLeod County has certified the Assessed Value of all taxable property in the District (the Original Assessed Value). The assessed value of the Property at such time which was included in the Original Assessed Value was The Assessed Value of all taxable property in the District as determined for each year during the existence of the District, less the Original Assessed Value, shall be known as the Captured Assessed Value. The ad valorem taxes derived from such property, by applying the aggregate mill rate levied by all governmental entities having authority.to levy taxes on such property to the Captured Assessed Value, shall be known as the Tax Increment. 1.06. Intention to Contract. The City is desirous of contracting with the Developer to purchase the Property in accordance with the Development Program, as specified in this Agreement; and the Developer is desirous of contracting with the City for this purpose. 1.07. Authority. Each of the parties has authority to enter into this Agreement and to take all actions required of it hereby, and has taken all actions necessary to authorize the execution and delivery of this Agreement. 1.08. Developer. For purposes of this Agreement, "Developer" includes its heirs, representatives, successors and assigns, and any person or entity to whom the Property or any of its rights hereunder are transferred or assigned, as hereinafter permitted. Section 2. Sale of Property. 2.01. Agreement to Sell; Purchase Price. Subject to the terms and conditions of this Agreement, the City agrees to sell the Property to the Developer, and the Developer agrees to purchase the Property from the City, for the price of $ (the Purchase Price). 2.02, Deed. At closing, the City shall convey title to the Property to the Developer by quit claim deed in the form attached hereto as Exhibit C (the Deed). 2.03. Time and Place of Closinq. The conveyance of the Deed from the City to the Develocer and the pay,:.ent of the Purchase Price (the Closing) shall take place at a date and place to be mutually agreed upon by the parties but snail occur not later than , 1985. Closing shall be expressly contingent on the City acquiring title to the Property from its • current owners pursuant to the Purchase Agreement described in -2- Section 1.04 hereof. The City shall notify the Developer of i the proposed date of Closing not less than ten (10) days prior to the proposed date. Subject to the provisions of this Agreement, the City shall deliver the Deed to Developer on the date of Closing, at which time the Developer shall pay the Purchase Price and obtain possession of the Property. 2.04. Taxes. The Developer shall pay all ad valorem taxes and special assessments levied on the Property which are payable subsequent to the date of Closing, and shall make such payments promptly throughout the term of this Agreement. 2.05. Assessment Agreement; Recording. The Developer agrees to execute and deliver on the date hereof the Assessment Agreement in the form of Exhibit D hereto (the Assessment Agreement), which is hereby made a part of this Agreement. The Developer shall, within 10 days after the Closing, file and have recorded in the office of the County Recorder of McLeod County, the Deed, the Assessment Agreement and this Agreement, and shall pay all costs of such recording. 2.06. Evidence of Title. The Developer hereby accepts the condition of title, acknowledges that a quit claim deed from the City will be acceptable and waive any rights it may have to require additional title evidence or examination of • title to the Property. Section 3. Citv Undertakinqs. 3.01. Acquisition of Property. The City agrees to acquire the Property and to finance the cost thereof from the proceeds of the Bonds, but only on and subject to the terms and conditions specified in this Agreement. 3.02. Issuance of Bonds. The City agrees to exercise all powers conferred upon it by law to sell and issue the Bonds on or before 1, 1985, or such later date as may be agreed to in writing by the parties, in a principal amount sufficient to pay, inter alia, the net purchase price of the Property to be paid by the City. 3.03. Disbursement of Bond Proceeds. The City and the Developer acknowledges and agrees that under the Resolution proceeds of the Bonds will not be disbursed to pay the cost of the acquisition of the Property unless and until the City has approved the plans and specifications for the Improvements (as hereinafter defined) in accordance with Section 4.02 hereof, and the Developer have provided the City with a copy of the construction and permanent mortgage commitments) obtained by the Developer together with financial statements of the -3- • iDeveloper collectively evidencing the Developer's ability to pay the cost of acquiring the Property and constructing the Improvements. Section 4. Developer's Undertakinqs. 4.01. Acquisition of Property; Renovation and Value of Improvements. The Developer agrees to acquire the Property as contemplated by Section 2 hereof and to renovate (or cause to be renovated) the Improvements on the Property as described in Exhibit E hereto. The Developer will acquire the Property and construct the Improvements for The renovation of the Improvements shall cost at least $ The Developer shall not, either through (a) tax abatement proceedings, and /or (b) any proceeding commenced pursuant to Minnesota Statutes, Chapter 278 or any similar law, and /or (c) willful demolition of the Improvements, cause the Assessor's Market Value of the Property, the Improvements, and any other improvements constructed on the Property, as the basis for ad valorem taxes payable in 198_ and thereafter, to fall below $ , or such higher Assessor's Market Value as may be specified for such period by Section 4.07 hereof. The Developer shall not • transfer, sell or otherwise convey the Property or the Improvements to an entity which is exempt from payment of ad valorem property taxes. Except as expressly provided otherwise herein, no provision of this Agreement shall restrict the Developer from the construction of additional improvements on the Property. The Improvements, and any additional improvements to be located upon the Property prior to the issuance of a Completion Certificate (as defined in Section 4.06 hereof), shall be renovated and constructed in accordance with this Section 4.01 and Section 4.02 hereof; provided, however, that no such additional improvements shall reduce the fair market value of the Property or the Improvements for ad valorem tax purposes. 4.02. Plans and Specifications. The Developer will renovate the Improvements in accordance with plans and specifications (the Plans and Specifications) which conform to the Development Program, this Agreement and applicable state and local laws, ordinances, rules and regulations. The Plans and Specifications shall be submitted to and be subject to approval by -he City cr:c- tc -he commencement of construction. If the Plans and Specifications conform to the Development Program, this Agreement and applicable laws, ordinances, rules and regulations, the City shall approve them in writing. If the Plans and Specifications do not so conform, • the City shall notify the Developer of this fact and provide CE10 the Developer with a list of specific objections within thirty i (30) days after receipt of the Plans and Specifications by the City. The Plans and Specifications shall be deemed approved if the City does not approve of or object to the Plans and Specifications within this 30 -day period. The Developer shall within forty -five (45) days of receipt of the list of specific objections by the City, submit new or corrected conforming Plans and Specifications to the City, and the City shall approve of or object to the Plans and Specifications in the manner hereinbefore provided. After approval of the Plans and Specifications by the City, any change in the Plans and Specifications which substantially or materially alters the renovation of the Improvements shall be submitted to and shall be subject to approval by the City. 4.03. Construction Contracts. The Developer shall-- enter into one or more contracts with one or more contractors (the Contractors) providing for the renovation of the Improvements, having an aggregate cost of not less than $ Renovation of the Improvements shall be completed on or before January 1, 1986, and the contracts for the construction shall so provide. The completion date under such contracts may be made subject to Unavoidable Delays (as hereinafter defined), in which event the completion date may be extended by the period of such Unavoidable Delays. The Developer shall provide the City with a copy of executed construction contracts and payment and performance bonds by the Contractors, which bonds shall (1) name the Developer's mortgagee, if any, as an obligee, (2) be in a penal sum or amount equal to the contract price under such construction contracts, and (3) be certified by the Developer to be a true and correct copy thereof. 4.04. Access to Property. The City agrees to permit the Developer or its employees, agents or contractors access to the Property for any purpose deemed necessary by the Developer for carrying out the provisions of this Agreement. Subsequent to the conveyance of the Property to the Developer, the Developer agrees to permit the City and any of its officers, employees or agents access to the Property for the purpose of inspection of all work being performed in connection with the construction of the Improvements; provided, however, that the City shall have no obligation to inspect such work or the Improvements. 4.05, Construction Progress Report. Subsequent to the conveyance of the Property to the Developer, and until renovation of the Improvements has been completed in accordance with Section 4.01 hereof, the Developer shall, upon written request of the City, make, in such detail as may reasonably be -5- required by the City, and forward to the City, a written report as to the actual progress of such renovation. 4.06. Completion Certificate. Upon completion of renovation of the Improvements in accordance with Section 4.03 hereof, the City shall furnish to the Developer an appropriate completion certificate (Completion Certificate) so certifying. The certification shall be (and it shall be so provided in the certification itself) a conclusive determination of satisfaction and termination of the covenants in this Section 4 with respect to the obligations of the Developer to construct the Improvements and the dates of completion thereof. The certificate shall be in the form of Exhibit F hereto. Within thirty (30) days after written request by the Developer, the City shall provide to the Developer such certification or a written statement indicating in adequate detail the manner in which the Developer has failed to construct the Improvements in accordance with this Agreement, or is otherwise in default, and the measures or actions that must be taken to construct the Improvements in accordance with this Agreement. 4.07. Increase in Market Value After Completion. The Developer acknowledges and agrees that the Assessor's Market Value of the Property and Improvements set forth in Section •4.01 hereof reflects fairly and accurately the market value of the Property and Improvements upon completion of the Improvements pursuant to the obligations of the Developer pursuant to this Section 4. The Developer further acknowledges and agrees that the market value of the Property and Improvements will increase in subsequent years due to the nature and location of the Property and the Improvements and general inflationary pressures. In recognition thereof, the Developer acknowledges, covenants and agrees that, for all purposes of this Agreement, the Assessor's Market Value of the Property, the Improvements and any other improvements constructed on the Property shall not be assessed for property tax purposes at a value less than the figure of Assessor's Market Value set forth below opposite the dates on which such property is to be valued for purposes of ad valorem property taxation: Assessor's Assessment Dare Market Val aP_uary January January January January • January January 2, 2, 2, 2, 2, 2, 2, 19 19 19 19 19 19 19 In the event the provisions of this Section 4.07 are, for whatever reason, held invalid or unenforceable by any court of competent jurisdiction, it is the intention of the parties hereto that such holding shall not invalidate or render unenforceable any other provision of this Agreement or the Assessment Agreement. 4.08. Payment of Administrative Expenses. The Developer hereby agrees to pay directly to the City upon demand, whether or not the Bonds are issued, either in cash or by certified check, any and all administrative expenses relating to this project as part of the Development Program, including, but not be limited to, all costs of issuance of the Bonds, including fees of bond counsel, counsel to the City, the fiscal agent and any other consultants retained by the City in connection with the implementation and administration of the`" Development District and the Development Program, with respect to the Property, to the extent that such costs are not reimbursed to the City from proceeds of the Bonds or from Tax Increments or may not be so reimbursed by reason of the application of Minnesota Statutes, Section 273.75, Subdivision 3. 4.09. Enforcement; Damages. The Developer acknowledges the right of the City to enforce the terms of this • Agreement against the Contractors and the Developer, by action for specific performance or damages, or both, or by any other legally authorized means. The Developer also acknowledges that its failure to perform any or all of its obligations under this Agreement may result in the City having to levy an ad valorem tax on all taxable property in the City, for the payment of the Bonds and the interest thereon when due; that in the event of default by any Contractor or the Developer, the City may commence legal action to recover the amount of such tax from the Contractor or the Developer, as the case may be, together with all expenses incurred in connection with the levy of such tax or such legal action; and that such expenses may include but are not limited to the reasonable fees of legal counsel employed with respect to the enforcement of this Agreement. Neither the Developer nor any agent or employee of the Developer shall be liable to the City for any expense or loss incurred by the City as a result of any Contractor's default in the construction of Improvements in excess of the liability of the Contractor to the Developer for such default. 4.10. Indernity. The Developer, its heirs, representatives, successors and assigns, shall indemnify, defend and save harmless the City and its officers, agents and employees from all costs and expenses, including all attorneys' fees, in any way resulting from or arising out of the condition • -7- or use of the Property and construction of the Improvements, including operations of Contractors and acts or omissions of employees or agents of Contractors. Section 5. Use of Property; Financinq and Liens. 5.01. General Restrictions. The Developer agrees for itself, and its heirs, representatives, successors and assigns, and every successor in interest to the Property or any part thereof, that the Developer and its permitted successors and assigns shall: (A) devote the Property and the Improvements to the uses specified in the Development Program; (B) not discriminate on the basis of color, creed, national origin, or sex in the sale, lease, use or occupancy of the Property or the Improvements, or any part thereof; (C) not cause the Property or the Improvements or any part thereof to be removed from the public tax rolls or to become exempt from assessment for general ad valorem real estate taxes by reason of any • conveyance, lease or other action. 5.02. Covenants. It is intended and agreed, that the covenants provided in Sections 4.01 and 5.01 shall be covenants running with the land binding to the fullest extent permitted by law and equity for the benefit and in favor of, and enforceable by, the City, its successors and assigns, and any successor in interest to the Property, or any part thereof, against the Developer, and its heirs, representatives, successors and assigns, and every successor in interest to the Property or any part thereof or any interest therein, and any party in possession or occupancy of the Property or any part thereof; provided further that breach of these covenants shall not result in a reversion of title to the Property to the City. The covenants provided in Sections 4.01 and 5.01 shall remain in effect until no Bonds or additional bonds are deemed outstanding under the Resolution. 5.03. Restrictions on C- O"Veyance; Financing. Until the City issues its Completion Certificate, the Developer will not make or s-.iffer to oe .:jade, any sale, ass nment, conveyance, lease, mortgage, encumbrance, lien or transfer in any other form, of this Agreement or the Prcpert_v or the Improvements, or any part thereof, or any interest therein, or contract or agree to do any of the same, withcut the written • consent of the City. 5.04. Notice of Default. Whenever the City shall i deliver any notice or demand to the Developer with respect to any breach or default by the Developer in its obligations or covenants under this Agreement, the City shall at the same time forward a copy of such notice or demand to each holder of any permitted mortgage, lien or other similar encumbrance at the last address of such holder shown in the records of the City. Each such holder shall have the right, at its option, to cure or remedy such breach or default and to add the cost thereof to the mortgage debt and the lien of its mortgage; provided that if the breach or default is with respect to construction of the Improvements, nothing contained in this Agreement shall be deemed to permit or authorize such holder, either before or after foreclosure or action in lieu thereof, to undertake or continue the construction or completion of the Improvements without first having 4xpressly assumed the obligation to the City, by written agreement satisfactory to the City, to complete the construction of the Improvements in accordance with the Plans and Specifications and this Agreement. Any such holder who shall properly complete the construction of the Improvements shall be entitled, upon written request made to the City, to a certification or certifications by the City to such effect in the manner provided in Section 4.06. 5.05. No Merger. Any provision in this Agreement . which has not been performed prior to Closing shall not be deemed to have merged into the Deed delivered at Closing, but shall, unless expressly waived in writing, survive such closing and be in force and effect until performed. 5.06. Destruction of Improvements. Until the Bonds are paid in full, in the event of damage to or destruction of the Improvements or any part thereof which reduces the Assessor's Market Value of the Improvements and the Property below $ , or such higher Assessor's Market Value as may be specified for such period by Section 4.07 hereof: (A) The Developer shall, as soon as reasonably possible and in any event on or before the second succeeding December 31 following such destruction, time being of the essence, repair, rebuild or replace the damaged Improvements to such extent as will cause the Assessor's Market Value of the Improvements and the Property to equal or exceed $ , or such higher assessor s Market Value as may be specified for such period by Section 4.07 hereof; (B) If such repair, rebuilding or replacement, to the extent required by paragraph (A) of this Section 5.06, is not completed by such date, the Developer • Q10 shall be liable to the City for damages in an amount equal to the difference between the Tax Increment received by the City in each subsequent year and the Tax Increment that would have been received by the City had such repair, rebuilding or replacement been completed by such date. 5.07. Insurance. (a) The Developer shall keep and maintain the Improvements at all times insured against such risks and in such amounts, with such deductible provisions, as are customary in connection with the operation of facilities of the type and size comparable to the Improvements, and the Developer shall carry and maintain, or cause to be carried and maintained, and pay or cause to be paid timely the premiums for, with respect to the Improvements, direct damage insurance covering all risks of loss, including, but not limited to, the following: (1) (2) (3) (4) • (5) (6) (7) fire extended coverage perils vandalism and malicious mischief boiler explosion (but only if steam boilers are present) water damage debris removal collapse on a replacement cost basis in an amount equivalent to the full insurable value thereof. ( "Full insurable value" shall include the actual replacement cost of the Improvements (exclusive of foundations and footings) without deduction for architectural, engineering, legal or administrative fees or for depreciation.) Insurance in effect prior to the issuance by the City of a Completion Certificate under Section 4.06 hereof shall be maintained on an "all- risk" builder's risk basis during the course of construction. The policies required by this Section 5.07 shall be subject to a no co- insurance clause or contain an agreed amount clause, and may contain a deductibility provision not exceeding $1,000. (b) Policies of insurance required by this Section 5.07 shall assure and be payable to the Developer, and shall provide for release of insurance proceeds to the Developer for estorat_on of Icss. The C,ty s':all It furnished Cert'f.Ca`_e showing the existence of such :assurance. In case of loss, the Developer is hereby author zed to adjust the loss and execute proof thereof in the name of all Parties in interest. The Developer shall annually file with the City a schedule • describing all such policies in force, including the types of -10- insurance, names of insurers, policy numbers, effective dates, terms of duration or any other information the Developer deem pertinent. Such list shall be accompanied by a certificate executed by the Developer stating that, to the best of the knowledge of the Developer, insurance on the Improvements then in force complies with this Section 5.07. Section 5.08. Condemnation. In the event of a taking of all of the Property under the power of eminent domain other than by the City, or in the event a deed is given under the threat thereof, the Developer shall pay to the City such amount of the condemnation proceeds as is required, together with moneys then on hand in the debt service fund for the Bonds, to pay % of the principal of all Bonds then outstanding and interest accrued thereon to the date of payment. Any proceeds remaining after the application above specified shall be the property of the Developer. In the event of a taking of part of the Improvements, the Developer shall rebuild such part of the Improvements on the Property if such rebuilding is reasonably possible, but in any event shall take such steps as are necessary to ensure that the Assessor's Market Value of the Property, the Improvements and any other improvements on the Property does not fall below $ , as such higher Assessor's Market Value as may be specified for such period by Section 4.07 hereof. • Section 6. Securitv for Bonds. 6.01. Tax Increments. The Developer acknowledges the right of the City to assign and pledge the Tax Increment derived from the District (other than Tax Increment derived from that area included in the District and currently designated as Tax Increment Area Four) to the payment of principal of and interest on the Bonds; to deposit the Tax Increment with the Paying Agent under the Resolution for this purpose not more often than twice yearly on or before the dates specified in the Resolution; and to invest such Tax Increment in accordance with Minnesota Statutes, Section 475.66 and the Resolution. 6.02. Partial Bond Guaranty. The Bonds, if and when issued by the City, shall be issued in an aggregate principal amount not greater than $ , shall bear interest at such rates that the net effective interest rate on the Bonds is not greater than per annum and shall be payable over a term not exceeding _ years. The Developer agrees to pay to the City at the times and subject :o the limitations hereinafter provided, the amount needed, in addition to the Tax Increment and any interest earnings available to the City, to pay % the principal of and interest on the Bonds when due. The City will 0 -11- no later than 15 days before an interest payment date on the Bonds notify and request payment from the Developer of the amount required, if any, in addition to such Tax Increment and interest earnings, to pay % of the principal and interest coming due on the Bonds on said interest date. The Developer agrees to pay such amount to the City immediately upon receipt of such request from the City; provided that in no event shall the amount paid to the City pursuant to any such request from time to time exceed, together with payments theretofore made by other private individuals or entities pursuant to other like Contracts for Sale and Development: (a) to pay principal, 25% of the aggregate principal amount of the Bonds that has been retired or is then due and payable, less the amount of any previous payments made for this purpose; and (b) to pay interest, 25% of the interest that has been paid on the Bonds or is then due and payable thereon, legs the amount of any previous payments made for this purpose. Section 7. General Provisions. 7.01. Conflicts of Interest; City's Representatives Not Individually Liable. No member, officer, or employee of the City shall have any personal interest, direct or indirect, in the Property, the contracts for the construction of the • Improvements, the Improvements or this Agreement, nor shall any such member, officer, or employee participate in any decision relating to this Agreement which affects his or her personal interests or the interests of any corporation, partnership, or association in which he or she is, directly or indirectly, interested. No member, officer or employee of the City shall be personally liable to the Developer in the event of any default under or breach of this Agreement by the City, or for any amount which may become due to the Developer for any obligation issued under the terms of this Agreement. 7.02. Rights Cumulative. The rights and remedies of the parties of this Agreement, whether provided by law or by this Agreement, shall be cumulative, and the exercise by either party of any one or more of such remedies shall not preclude the exercise by such party, at the same or different times, of any other remedy for the same default or breach or of any of its remedies for any other default or breach of the party. No waiver made by either such party with respect to the performance or the manner or time thereof, of any obligation under this Agreement, shall be considered a waiver with respect to the particular obligation_ of the other party or a condition to its own obligation beyond tose expressly waived in writing and to the extent thereof, or a waiver in any respect in regard to anv other rights of the party making the waiver of any obligations of the other party. Delay by a party hereto -12- instituting or prosecuting any cause of action or claim i hereunder shall not be deemed a waiver of any rights hereunder. 7.03. Unavoidable Delays. Wherever used in this Agreement, the term "Unavoidable Delays" shall mean a delay resulting from a cause over which the party required to make performance does not have control and which can not or could not have been avoided by the exercise of reasonable care, including but not limited to acts of God, accidents, war, civil unrest, embargos, strikes, unavailability of raw materials or manufactured goods, litigation and the delays of the other party or its contractors, agents or employees in the performance of their duties under or incident to this Agreement. 7.04. Term of Agreement. This Agreement shall remain in effect until no Bonds or additional bonds are deemed outstanding under the Resolution. Section 8. Administrative Provisions. 8.01. Notices. All notices, certificates or other communications required to be given to the City and the Developer hereunder shall be sufficiently given and shall be deemed given when delivered or deposited in the United States mail in registered or certified form with postage fully prepaid . and addressed as follows: If to the City: City of Hutchinson City Hall 37 Washington Avenue West Hutchinson, Minnesota 55350 Attn: City Clerk- Administrator If to the Developer: The City and the Developer, by notice given hereunder, may designate different addresses to which subsequent notices, certificates or other communications should be sent. 8.02 Binding Effect. This Agreement shall inure to the benefit of and shall be binding upon the City and the Developer and its respective heirs, representatives, successors or assigns. 8.03. Severability. In the event any provision of this Agreement shall be veld invalid or unenforceable by any • -13- icourt of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof. 8.04. Amendments, Changes and Modifications. This Agreement may be amended or any of its terms modified only by written amendment authorized and executed by the City and the Developer. 8.05. Further Assurances and Corrective Instruments. The City and the Developer agree that they will, from time to time, execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, such supplements hereto and such further instruments as may reasonably be required for correcting any inadequate or incorrect description of the Property or the Improvements, or for carrying out the expressed intention of this Agreement. 8.06. Execution Counterparts. This Agreement may be simultaneously executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. 8.07. Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the . State of Minnesota. 8.08. Captions. The captions or headings in this Agreement are for convenience only and in no way define, limit or describe the scope of intent of any provisions or Sections of this Agreement. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first above written. • CITY OF HUTCHINSON, MINNESOTA (SEAL) By -14- By Mayor City Clerk- Administrator ;Develcperj STATE OF MINNESOTA ) ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me on this day of 1985, by , Mayor, and , City Clerk- Administrator, of the City of Hutchinson, a Minnesota municipal corporation, on behalf of the corporation. Notary Public STATE OF MINNESOTA ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me on this day of , 1985, by This document was drafted by Dorsey & Whitney 2200 First Bank Place East Minneapolis, Minnesota 55402 -15- Notary Public 0 i 6 EXHIBIT A r� U • Legal Description of the Property The real property and interests in such property located in the County of McLeod, State of Minnesota and described as follows: -16- EXHIBIT B [attach copy of Purchase Agreements] n LJ -17- `J n U • EXHIBIT C [attach form of quit claim deed from the City to the Developer] -18- EXHIBIT D 6 [attach form of Assessment Agreement] • 0 -19- • • EXHIBIT E The Improvements -20- EXHIBIT F Completion Certificate The undersigned, being the duly qualified and acting Mayor of the City of Hutchinson, Minnesota, hereby certify pursuant to Section 4.06 of the Contract for Sale of Land for Private Redevelopment in Development District No. dated as of , 1985, between the City and (the Developer), that the Developer has completed the construction of the Improvements (as defined in said Contract) in accordance with said Contract. Dated: 19 Mayor City of Hutchinson, Minnesota -21- i U n U • 0 ASSESSMENT AGREEMENT THIS AGREEMENT, made and entered into as of this day of , 1985, by and between the City of Hutchinson, Minnesota, a municipal corporation of the State of Minnesota (the City), and (the Developer); WITNESSETH THAT, in the joint and mutual exercise of their powers, and in consideration of the mutual benefits herein described, the parties hereto recite and agree as follows: Section 1. Recitals. 1.01. Establishment of Project and Plans. The City Council of the City (the City Council) has designated a Development District in the City known as Development District No. 4 (the Development District), has approved a Development Program for the Development District (the Development Program), has established a tax increment financing district (the District) within the Development District, and has approved a Tax Increment Financing Plan for the District (the Financing Plan), all pursuant to and in accordance with Minnesota Statutes, Chapter 472a and Sections 273.71 through 273.86. 1.02. Implementation. The Citv Council has determined that it is necessary, in order to accomplish the purposes specified in and to carry out the Development Program, and in the best interests of the City for the City to purchase the real property described in Exhibit A hereto (the Property) in accordance with the Development Program. The City and the Developer have entered into a Contract for Sale of Land for Private Development in Development District No. 4, dated , 1985 (the Development Agreement), whereby the Developer has agreed to purchase the Property from the City and to renovate (or cause to be renovated) upon the Property the existing building located thereon as described in Exhibit B hereto (the Facilities), and the City has agreed to issue its General Obligation Tax Increment Bonds (the Bonds) to finance the capital and administration costs of the Development District as . described in the Financing Plan, including the costs of acquisition of the Property. The Developer will acquire the Property and construct the Improvements for 1.03. Payment of Bonds. The County Auditor of McLeod County has certified the assessed value, as defined by law, of the District as of January 2, 1980 (the Original Assessed Value). The assessed value of the Property at such time which was included in the Original Assessed Value was $ The assessed value of all taxable property in the District as -2- idetermined for each year during the existence of the District, less the Original Assessed value, shall be known as the Captured Assessed Value. The ad valorem taxes derived from all taxable property in the District, after application to the Captured Assessed Value of the aggregate mill rate levied by all governmental entities having authority to levy taxes on such property, shall be known as the "Tax Increment." Under Sections 273.71 through 273.86, the County Auditor is required to pay to the City the Tax Increment derived from the District during the existence of the District, to be used to pay costs incurred by the City in carrying out the Development Program including, but not limited to, debt service on the Bonds, and . other bonds issued by the City payable in whole or in part from the Tax Increment, and related paying agency and registration charges. 1.04. Purpose of Contract. The debt service on the Bonds will be payable primarily from the Tax Increment derived from all taxable property in the District, other than that area included in the District and currently designated as Tax Increment Area Four, the amount of which is dependent upon the completion of the renovation of the Facilities by the Developer and upon their market value for ad valorem tax purposes. In order to make more certain the minimum amount of the --ax Increment to be derived by the Authority from the Property commencing in the year 1987, the City desires to contract with • the Developer to establish a minimum market value of the Property and the completed Facilities. -3- 1.05. Effect of Agreement; Consideration. The City • and the Developer acknowledge and agree that the establishment of such minimum market value will tend to reduce the interest cost on the Bonds, thus making the Tax Increment received by the City more adequate for the payment of debt service on the Bonds and reducing the possibility that the City will be required to levy ad valorem taxes on all taxable property within its corporate limits to pay debt service on the Bonds when due. 1.06. Authority. Each of the parties has authority to enter into this Agreement and to take all actions required of it hereby, and has taken all actions necessary to authorize the execution and delivery of this Agreement. This Agreement is entered into by the City pursuant to Minnesota Statutes, Section 273.76, Subdivision 8. Section 2. Market Value of Property and Facilities. 2.01. Completion of Facilities. Under the Development Agreement, the Developer is required and have agreed to complete renovation of the Facilities by January 1, 1986. For purposes of this Agreement and the determination of the market value of the Property and the completed Facilities for ad valorem tax purposes, the Developer agrees that the renovation of the Faci:.:ies shall be deemed to be completed in accordance with the Development Agreement as of January 1, 1986 (the required date of completion), whether in fact completed or not. 0 -4- 6 2.02. Minimum Market Value Upon Completion. The Developer agrees that the minimum market value of the Property and the completed Facilities for ad valorem tax purposes, commencing with the assessment made as of January 2, 1986, and continuing through the assessment made as of January 2, shall not be reduced by any action taken by the Developer (other than a deed in lieu of, or under threat of, condemnation by the City or other condemning authority), to less than $ , or such higher minimum market value as may be specified for such period by Section 2.03 hereof; and that during said period no reduction of the market value therefor below said minimum market value shall be sought by the rDeveloper or granted by any public official or court except in accordance with Minnesota Statutes, Section 273.76, Subdivision 8 and no action shall be taken by the Developer to cause such Property and completed Facilities to become exempt from real estate taxes. 2.03. Increase in Market Value After Completion. The Developer acknowledges and agrees that the minimum market value of the Property and completed Facilities set forth in Section 2.02 hereof reflects fairly and accurately the market value of the Property and facilities upon completion of the renovation of the Facilities pursuant to the obligations of —e Developer pursuant to the Development Agreement. The Developer further acknowledges and agrees that the market value of the Property • -5- and Facilities will increase in subsequent years due to the nature and location of the Property and the Facilities and general inflationary pressures. In recognition thereof, the Developer acknowledges, covenants and agrees that, for all purposes of this Agreement, the minimum market value of the Property, the Facilities and any other improvements constructed on the Property shall not be assessed for property tax purposes at a value less than the figure of minimum market value set forth below opposite the dates on which such property is to be valued for purposes of ad valorem property taxation: Assessment Date January 2, 19_ January 2, 19_ January 2, 19_ January 2, 19_ January 2, 19_ January 2, 19_ January 2, 19_ Minimum Market Value In the event the provisions of this Section 2.03 are, for whatever reason, held invalid or unenforceable by any court of competent jurisdiction, it is the intention of the parties hereto that such holding shall not invalidate or render unenforceable any other provision of this Agreement or the Development Agreement. 2.04. Higher Market Value. Nothing in this Agreement shall limit the discretion of the Ccur_ty Assessor of McLeod County, or any other public official or body having the duty to determine the market value of the Property and the Facilities WE 0 • rfor ad valorem tax purposes (the Assessor), to assign to the Property and the Facilities, or to any other improvements constructed on the Property, on a nondiscriminatory basis and treated fairly and equally with all other property so classified in McLeod County, a market value in excess of the minimum market value specified in Sections 2.02 or 2.03 hereof. section 3. Filing and Certification. 3.01. The City shall present this Agreement to the McLeod County Assessor and request him to execute the certification attached hereto as Exhibit C. The Developer shall provide to the Assessor all information relating to the Property and the Facilities requested by him for the purpose of • discharging his duties with respect to the certification. 3.02. Within 30 days after the execution of this Agreement, the Developer shall cause this Agreement and a copy of Minnesota Statutes, Section 273.76, Subdivision 8, attached hereto as Exhibit D, to be recorded in the office of the County Recorder of McLeod County. Section 4. Relation to Development Agreement. The covenants and agreements made by the Developer in this Agreement are separate from and in addition to the covenants and agreements made by the Developer in the Development Agreement; nothinq contained ::ere_n sl.al' in any way alter, diminish or supersede the duties and obligations of t_e • Developer under the Development Agreement. -7- Section 5. Administrative Provisions. 5.01. Binding Effect. This Agreement shall inure to the benefit of and shall be binding upon the City and the Developer and its respective heirs, representatives, successors and assigns, and upon all subsequent owners of the Property and the Facilities. 5.02. Severability. In the event any provision of this Agreement shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof. 5.03. Amendments, Changes and Modifications. Except as provided in Section 5.04 hereof, this Agreement may be amended or any of its terms modified only by written amendment • authorized and executed by the City and the Developer. 5.04. Further Assurances and Corrective Instruments. The City and the Developer agree that they will, from time to time, execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, such supplements hereto and such further instruments as may reasonably be required for correcting any inadequate or incorrect description of the Property or the Facilities, or for carrying out the expressed intention of this Agreement. 5.05. E_:ecutio ^. Counterparts. This = .greement may be simultaneously executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. • ZZ 6 r� 5.06. Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota. 5.07. Captions. The captions or headings in this Agreement are for convenience only and in no way define, limit or describe the scope of intent of any provisions or Sections of this Agreement. IN WITNESS WHEREOF, the City and the Developer have caused this Agreement to be executed by their duly authorized representatives as of the date first above written. (SEAL) STATE OF MINNESOTA) ss. COUNTY OF ) CITY OF HUTCHINSON, MINNESOTA By Mayor Attest: City Clerk- Administrator (Developer] The foregoing instrument was acknowledged before me this day of 1985, by , the Mayor, and the City Clerk- Administrator, of the City of Hutchinson, a municipal corporation of the State of Minnesota, on behalf of the municipal corporation. • Notary Public STATE OF MINNESOTA) 6 ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 1985, by This document was drafted by Dorsey & Whitney 2200 First Bank Place East Minneapolis, Minnesota 55402 -10- Notary Public 0 • i n U EXHIBIT A Legal Description of the Property EXHIBIT C ASSESSOR'S CERTIFICATION The undersigned, being the duly qualified and acting Assessor of McLeod County, Minnesota, hereby certifies that: 1. he is the assessor responsible for the assessment of the Property described in the foregoing Exhibit A. 2. he has read the foregoing Agreement; 3. he has received and read a duplicate original of the Development Agreement; 4. he has received and reviewed the architectural and engineering plans and specifications for the Facilities agreed to be constructed on the Property by the Developer pursuant to the Development Agreement; 5. he has received and reviewed an estimate prepared by the Developer of the cost of the Property and the Facilities to be constructed thereon; and U 6. the Market Value assigned to the Property and the • Facilities described in the foregoing Exhibits A and B upon completion shall not be less than $ Dated: , 1985. McLeod County, Assessor , Minnesota • 0 EXHIBIT D Minnesota Statutes, Section 273.76, Subdivision 8 Subd. 8. [ASSESSMENT AGREEMENTS.] An authority may, upon entering into a development or redevelopment agreement pursuant to section 273.75, subdivision 5, enter into a written assessment agreement in recordable form with the developer or redeveloper of property within the tax increment financing district which establishes a minimum market value of the land and completed improvements to be constructed thereon until a specified termination date, which date shall be not later than the date upon which tax increment will no longer be remitted to the authority pursuant to section 273.75, subdivision 1. The assessment agreement shall be presented to the county assessor, or city assessor having the powers of the county assessor, of the jurisdiction in which the tax increment financing district is located. The assessor shall review the plans and specifications for the improvements to be constructed, review the market value previously assigned to the land upon which the improvements are to be constructed and, so long as the minimum market value contained in the assessment agreement appears, in • the judgment of the assessor, to be a reasonable estimate, shall execute the following certification upon such agreement: The undersigned assessor, for the assessment of the upon completion of the im thereon, hereby certifies assigned to such land and shall not be less than $ being legally responsible above described property provements to be constructed that the market value improvements upon completion Upon transfer of title of the land to be developed or redeveloped from the authority to the developer or redeveloper, such assessment agreement, together with a copy of this subdivision, shall be filed for record and recorded in the office of the county recorder or filed in the office of the registrar of titles of the county where the real estate or any part thereof is situated. Upon completion of the improvements by the developer or redeveloper, the assessor shall value the property pursuant to section 273.11, except that the market value assigned thereto shall not be less than the minimum market value contained in the assessment agreement. Nothing herein shall limit the 3iscretion of the assessor to assign a market value to the property in excess of the minimum market value contained in the assessment agreement nor prohibit the developer or redeveloper from seeking, through the exercise of . administrative and legal remedies, a reduction in market value for property tax purposes; provided, however, that the developer or redeveloper shall not seek, nor shall the city up assessor, the county assessor, the county auditor, any board of review, any board of equalization, the commissioner of revenue or any court of this state grant a reduction of the market value below the minimum market value contained in the assessment agreement during the term of the agreement filed of record regardless of actual market values which may result from incomplete construction of improvements, destruction or diminution by any cause, insured or uninsured, except in the case of acquisition or reacquisition of the property by a public entity. Recording or filing of an assessment agreement complying with the terms of this subdivision shall constitute notice of the agreement to any subsequent purchaser or encumbrancer of the land or any part thereof, whether voluntary or involuntary, and shall be binding upon them. • D -2 Charles Bailly, & Company Certified Public Accountants Parkdale Four, Suite 300 5353 Gamble Drive Minneapolis, Minnesota 55416 j Telephone (612) 5464464 Mr. Gary Plotz City Administrator City Hall 37 Washington Avenue West Hutchinson, MN 55350 Dear Gary: April 23, 1985 if- , Offrc' in Fli "nesota, Montana, North Dakota and South Dakota Associates in principal title of United States, Canada, Modoo, Europe and Ada Regarding our letter of April 17, 1985 on the Jorgenson Hotel project, I have received additional information from Frank Fay as follows: 1. Comercial leases: Signed letters of commitment: Rexall Drug Hairstyles Plus Fay Realty A proposed lease drafted by Community Credit Co. The terms agree in substance with the projected amounts with the exception of Rexall Drug - the terms are $4.00 per square foot vs $6.00 per square foot used in the projection. 2. Items 2, 3 and 4 immediately following the "Conclusion" section on page three of our April 17, 1985 letter have been cleared and revisions made in the projection for the project. In addition, the Housing and Redevelopment Authority has provided information which supports the market assumption used in the projection. Since the above items have been resolved, the project based on the assumptions used in the projection is demonstrated as feasible. The final paragraph of our previous letter dated April 17, 1985, describes our audit responsibility and is reiterated in this letter. CLR:bjs Sincerely, CHARLES BAILLY & COMPANY By .P .A. Charles L. Rola do, Jr. • Gary D. Plotz City Administrator Ci -tv of Hutchinson 37 Washington Ave. West Hutchinson, MN 55350 Dear Mr. Plotz: S Tatkaw County Bemidji, Minnesota 56601 (218) 751.7300 April 15, 1985 171R' `sy r �sv 1 VED CO FOR YOUR INFORMATION On April 9, 1985, the Beltrami County Board of Commissioners passed a motion authorizing the City of Hutchinson to use $163,000 of the County's Entitlement Bonds. It was the consensus of the Board that the remaining bonds be utilized locally for economic development projects. Please let me know what additional information, if any, you will need from us should you decide to use these funds. JT /ln Yours truly, Julie Thompson Beltrami County Auditor An Affirmative Action Employer LEASED PARKING SURVEY AMOUNT MONTHLY r LEASED SPACES OR YEARLY METHOD OF LONG TERM CITY POPULATION YES /NO LEASE /SPACE IMPLEMENTATION COMMITMENT WORTHINGTON 10,243 YES $5 /mo. Cards in Vehicle May prepay Window for a year; no long term contracts. FERGUS FALLS 129519 YES $8 /mo. Sticker method 216 of approx. 500 spaces are leased;may pre- pay one year; no long--term leases NEW ULM 13,755 YES $8 /mo. - oiled Designated spaces May prepay for $11 /mo.- finished sign one year; no long term con- tract. ALEXANDRIA 72608 YES $100 /year Designated spaces Prorated for by sign,$10 fee less thaVe for sign initially; year - n ng 32 being leased term contract WILLMAR 15,895 YES $25 /year Sticker - limited None to service type business (plumbers, carpet cleaning, etc.) FARIBAULT 16,241 YES $25 /year Sticker - no limit None. on eligibility I also contacted Owatonna, Little Falls, Northfield and Albert Lea that reported no leased parking. I have discussed the results of the survey with Frank Fay and Mike Saxton. They forsee no problem in dropping the concept of a long term lease and instead having the tenants apply for leased parking similar to Worthington, Fergus Falls, New Ulm or Alexandria. �^ X MINNESOTA COUNTY ATTORNEYS ASSOCIATION . 40 cAl,,,u%i cSltttt, c5-a, 10o • Si. faui,'Alinncfulu !1'5104 • 1671% 227 -7493 TO: County Attorneys, Assistant County Attorneys, City Attorneys and Assistant City Attorneys FROM: Laurie Light, Legal Assistant RE: 1985 D.W.I. /Implied Consent Seminar May 9 & 10, 1985 Radisson Inn Plymouth DATE: April 9, 1985 • The Minnesota County Attorneys Association is sponsoring a D.W.I. /Implied Consent Seminar for Minnesota Traffic Law Prosecutors. The seminar is scheduled for May 9 b 10, 1985, at the Radisson Inn Plymouth, 2705 Annapolis Lane in Plymouth. Costs for the day and one -half program will be paid by a Federal Highway Traffic Safety Administration Grant awarded through the Minnesota Department of Public Safety. • The agenda and registration form are enclosed. Application for 9.0 hours of continuing legal education credits has been made. There is a registration fee of $35.00 (which includes lunch on May 9) to cover a portion of the direct expenses. This sum will be refunded if notice of cancellation is received in this office by May 2, 1985. Registrants are responsible for obtaining and paying for their own lodging. You should contact the Radisson Plymouth at (612) 553 -1600 or (800) 228 -9822. A block of rooms has been reserved for registrants until April 24, 1985. In order to receive a reduced room rate, be sure to inform the hotel personnel when reservations are made that you are attending this course. ATTENDANCE IS LIMITED AND AVAILABLE ON A FIRST -COME, FIRST - SERVED BASIS AS REGISTRATION FORMS AND FEES ARE RECEIVED BY THIS OFFICE. May 9. 1985 8:30 a.m. - 9:00 a.m. 9:00 a.m. - 9:15 a.m. 9:15 a.m. - 9:45 a.m. 9:45 a.m. - 10:00 a.m. 10:00 a.m. - Noon Noon - 1:15 p.m. 1:15 p.m. - 2:15 p.m. 2:15 p.m. - 2:45 p.m. AGENDA 1985 D.W.I. /IMPLIED CONSENT SEMINAR May 9 b 10, 1985 Radisson Inn Plymouth, Minnesota Registration INTRODUCTION Paul Tschida, Commissioner of Public Safety STATUTORY CHANGES, PROPOSED AND PASSED Jerry Anderson, Special Assistant Attorney General Break D.W.I./IMPLIED CONSENT CASE LAW UPDATE Joel Watne, Special Assistant Attorney General Lunch MANDATORY TESTING b THE RIGHT TO COUNSEL: THE NYFLOT CASE Martin Costello, Attorney at Law, Peterson, Bell S Converse STOPS IN D.W.I. CASES: USING ROADBLOCKS Alex Andrea, Assistant Bloomington City Attorney 2:45 p.m. - 3:00 p.m. Break 3:00 p.m. - 4:30 p.m. PROSECUTION OF CRIMINAL NEGLIGENCE UNDER THE 1983 STATUTE Louise Dobbe, Assistant Washington County Attorney May 10, 1985 8:30 a.m. - 10:15 a.m. 10:15 a.m. - 10:30 a.m ACCIDENT RECONSTRUCTION Scott McAllen, Accident Reconstruction Specialist, Minnesota State Highway Patrol Break 10:30 a.m. - Noon ACCIDENT RECONSTRUCTION, cont. 0 it E Jahn J BerNugen Eanwivc D.mi,r 16111587-5.152 Gap D. Pkxe, Cay Adrnmwmm 16121587-5151 BOARD OF DIRECTORS Pn,, R,wId 1. McGraw Attain, W Law lice Prn. Arthur L. C,.,per Preeiden[ F," NW,,,.l Bank Se, .. Trrm. Chat B. Pichl Certified Public 4a1 . Parl ,. Du N'a,w Phctum K Cu. T.A. iBut Burich Ex. V . C"acn, BJnk And Tm't Co Tam D.V,,I1 V.P.. Ocncml kb.gcr :[tichi,twin MI 6 Sal �. 41,'. A GI:n P' Fad Sa, mp, @ Lan lk,-n (.ICnn %Uw,kA Sup[. ul S.hud. Dntr,i 42: Hutchinson Community Development Corp. St - — 45 Washington Ave. East Hutchinson, Minnesota 55350 April 10, 1985 Ken Merrill City Hall Hutchinson, MN 55350 Dear Ken, Enclosed is the notice for a conference I will be attending in June. As you will note, the registration fee is $50.00 and is due on April 22nd. Could you please send the registration check in the envelope included to the National Economic Development and Law Center? (I have preregistered without the fee noting with the form, that a check would be coming from the Hutchinson office.) The lodging is to be taken care of separately and sent directly to the Olympia Resort and Spa in Oconomowoc, Wisconsin (This envelope is enclosed also.). They are asking for one nite lodging. Letty will be attending with me so it will be $64 for the reservation. However, I will be reimbursed upon return at the $50 single room rate. Please enclose the $64 in the Hotel envelope. Sincerely, hn Bernhagen G =� (612) 587 -5151 tiv,raHl' CITY OF HUTCHINSON -- / df HUTCHASON M E M 0 DATE: April 18, 1985 TO: Mayor and City Council FROM: Building Official RE: Albrecht Oil 1980 Conditional Use Permit Albrecht Oil Company was granted a Conditional Use Permit on September 23, 1980, contingent upon the property owner placing all existing above - ground storage tanks underground by October 1, 1985. Emanuel Albrecht is now requesting a three year extension. I would have no objection to the extension of time and am forwarding his request to the • council for your information and discussion. HP /pv • ►� • Homer Pittman Building Official ..omi.ec6r oil coo Gasoline • Oil • Fuel Oil Box 115 Hutchinson, MN 55350 April 17, 1985 Att: t•.r. Homer Pittman Building Official Office 37 Washington Ave. West iutchinson, Minn. 55350 .,Jith this letter we are respectfully asking for a three year extension to the time su7-ested that we go undergroun wit`_,, our 66,000 ahove�rounj storage. I don't think , Mr. Pittman that we will ever find and engineering firm that will sanction our going underground with that amount of storage and in particular it not being new storage. We know for certain that we cannot get proper insurance • cove-age for this type underground storage.This puts us in severe jeopardy, and I am sure that the City woul; not want to assume the liability since they made the surgestion. ;.y feeling is that if we can have the three year extension we can solve this problem to everyone- satisfaction and that the practicality and the constitutionality of the matter should at that t'-me he no factor. Pespec fully yours Emanuel V.�lbrech A1Lrecrt Oil Co. 0 • • ORDINANCE 6/85 ORDINANCE AMENDING SECTION 806:15 OF THE 1974 ORDINANCE CODE OF THE CITY OF HUTCHINSON, ENTITLED INTOXICATING LIQUOR, ADMINISTRATION THE CITY OF HUTCHINSON DOES ORDAIN: SECTION 1. Section 805:15 of the 1974 Ordinance Code of the City of Hutchinson, entitled Application for License, is hereby amended to read as follows; Section 806:15. Application for License. Subd. 2. Such application shall be accompanied by a surety bond or cash or certified check in lieu of such bond, in the sum of not less than $3,000.00, and by a liability insurance policy to insure against damages under the Civil Damage Act, or any other act or law, said policy limits to be not less than $100;000 $50,000 per injured person, and $308,, -099 $100,000 per accident or occurence. SECTION 2. Penalty. Any person violating the provisions of this ordinance shall be guilty of a penal offense and upon conviction shall be punished by a fine of not more than three hundred dollars ($300) or by imprisonment for not to exceed ninety (90) days, or both. SECTION 3. Effective Date. This Ordinance shall take effect upon its passage and publication. Adopted by the City Council this 23rd day of April, 1985. Robert H. Stearns Mayor ATTEST: • Gary D. Plotz City Clerk f ^ '1 U • �j RESOLUTION NO. 8021 T40 �rpti�l��j7 Md&)T- IDEIRTAS, 11I11ra4 Tullan has serurd the Litt' well as a memlier of the ?inspital Vnard fnr the Vast ten PIT) graro; IDET U A-5, Narah Mullan has served faithfully and diligrnflg giuing of her time and talrnfs toward the rnrichment of the Cify, Nor nEEEYOEE, BE 3r RE30ry u '?i'i1 ZBE �'33U TouNnc OY FRE nzu O ?III( Cr$3NS(91�T, T3FNE50TA: C.E;C:, deep apprrciatinn is hrrehy rxpressed to 4'rnra4 ffullan far her ufurr- mrnfinnrd seruires and the gratitude of Elutchinsun and the citi_>rne fhrrrnf is herrhg rxpressrd. Maptrd &y fhr (?'itg Council this 23rd day of April, 1985. (5iL;`y i1. � nit C�i tg Crlrrh Enbert I3. Strarns ifiaynr 0 RESOLUTION NO. 8026 TRANSFERRING $254,175 FROM 1980 TAX INCREMENT DEBT SERVICE FUND TO 1984 PARKING IMPROVEMENT FUND AND ALL FUTURE INCREMENTS OF AREA IV BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: THAT $254,175.00 is hereby transferred by the 1980 Tax Increment Debt Service Fund to the 1984 Parking Improvement Fund for the City's portion of the parking assessment. All tax increments received in 1985 and future years from Area IV are to be transferred to the 1984 Parking Bonds upon receipt of tax settlement money. Adopted by the City Council this 23rd day of April, 1985. is ATTEST: Gary D. Plotz City Clerk • Robert H. Stearns Mayor (612) 587 -5151 f/UTlH j CITY Of HUTCHINSON =`` ti AbrNUE WEST TO: Mayor & City Council FROM: John McRaith, Assistant Recreation Director DATE: April 18, 1985 SUBJECT: Building Committee Recommendation 0 CJ The building committee met at 5:30 p.m. on Wednesday, April 17 to discuss the recreation facility bids and make a recommendation. It was the building committee's feeling that the low bid from E.J. Pinske Builders should be accepted with the alter- nates recommended by Korngiebel Architects to be included (total cost $1,072,200). It was felt that the most important consideration at the time should be the immediate construction of the facility itself, with the flooring ($60,000) being the first option to consider when the funds become available. The next consideration would be the addition of the wading pool. Overall, the committee felt that the bids were within expectations and that extra funds would be necessary to build even the most "bare bones" facility. klm �r MINUTES Building Committee April 17, 1985 Members Present: Donn Hoffman, Kay Peterson, Sue Wagner, Garey Knutsen and Lyle Block. Members Absent: Barry Anderson and Arnold Rotzien. Also present were Mayor, Bob Stearns, John Korngiebel, Jim Haugen, John McRaith and Karen McKay. John Korngiebel handed out a bid summary of the lowest bidder for the recreation facility, E.J. Pinske Builders from Gaylord, Minnesota. Included on the sum- mary were the recommended alternates from Korngiebel Architects. After talking with Bob Rosene of Bonestroo, Rosene, An_derlik & Associates, In- corporated, Jim Haugen told the committee that Vossen Brothers Construction; builders of "Designer Pools ", would do a good job and that Rosene recommended that the committee accept deducts 411; chemical feed equipment and #4 galvanized steel diving standards and life guard chairs. Rosene also felt that the wading pool quote at $16,500 was a good price, and should be taken advantage of. John Korngiebel, however, felt that since the wading pool wasn't included on the bond issue, it shouldn't be added. John Korngiebel told the committee that alternate #5, the glazed blocks for striping, could be deducted and the stripes could be painted on,inside and outside the building. John also recommended taking the skylight deduction. He also mentioned that if all deductions were accepted, the project would still be $152,000 over the projected funds available, including the architect fees and the flooring. John told the committee that Pinske had two subcon- tractors, Krasen Plumbing & Heating, Hutchinson and Baker Electric of Willmar. If there was a consideration to rebid, John felt that approximately half the bidders would submit a bid, and that the bids would probably be higher. John asked the Mayor Bob Stearns if there was a recommendation from the city council. His personal opinion was that a "bare bones" facility was promised, and that after a year or two contributions could be used to improve the facility. The automatic chemical feeding equipment could be eliminated along with the wading pool. However, the plumbing for the wading pool should be done. The mayor told the committee that the council has to come to an agree- ment. John Korngiebel told the committee that the contract has to be signed with the builder within 30 days for the current bid price. Donn Hoffman made a motion to accept the base bid as listed by Korngiebel Achitecture through the "Total Construction Cost & Fees" for a cost of $1,072,200. Kay Peterson seconded the motion and the committee unanimously agreed. Garey Knutsen made a motion that the first priority added would be flooring for the field house. The second priority would be the wading pool. Lyle Block seconded the motion and the committee unanimously agreed. The meeting was adjourned at 6:30 p.m. 0 CJ April 17,1985 Korngiebel Architecture Ubrary Swan Suite 302 Washington Avenue East Hutchinson, Minnesota 55350 612/587 -2483 RECREATION FACILITY - HUTCHINSON, MINNESOTA BID SUMMARY E.J. PINSKE BUILDERS - LOW BASE BID: $1,072,500.00 - 195 DAYS RECOMMENDED ALTERNATES Alt #1 - Chemical Feed Equipment #3 - Wading Pool & Deck #4 - Diving Standards & Lifeguard Chairs #5 - Glazed Masonry Units #6 - Skylite Total Deduct Net Architect Fees X $1,081,900.00 (Includes Alt #8) _ JTAL CONSTRUCTION COST & FEES By Owner: Flooring & Equipment TOTAL PROJECT COST (25,128 SF Bldg.) $ 2,000.00 16,500.00 3,650.00 30,000.00 12,500.00 $ 64,650.00 $1,007,850.00 64,350.00 $1,072,200.00 60,000.00 $1,132,200.00 Building Cost Per Square Foot Total Net - $1,007,850.00 Less Pool 215,000.00 Bldg Cost $ 792,850.00 (25,128 SF = $31.55/SF) Last Estimate - May 30,1984 Field House - 16,200 SF @ $20 /SF = Public Areas - 2,600 SF @ $35 /SF = Locker Rooms - 3,600 SF @ $50 /SF = Park /Recreation Office - 1,104 SF @ $45 /SF = Pool Equipment & Storage - 1,330 SF @ $35 /SF = Pool •nish Floor & Field House Architectural Fees (6 %) (294 SF less @ $31.15) _ Revised Total $ 324,000.00 91,000.00 180,000.00 49,680.00 46,550.00 $ 691,230.00 270,000.00 $ 961,230.00 56,700.00 61,075.00 $1,079,005.00 9,158.00 $1,088,163.00 Recreation Facility - Hutchinson, Mn. Bid Summary Page 2 $44,037.00 Over Budget (3.898) Not Including: City Work - Parking lot, dirt removal, utilities to building, soil borings, survey & building permit. Funds Available - Projected Interest - Needed Short $ 950,000.00 30,000.00 $ 980,000.00 $1,132,200.00 $ 152,200.00 0 • • BID TAB - RECREATION FACILITY - HUTCHINSON, MINNESOTA - APRIL 16,1985 CONTRACTORS Bid Cal. BASE BID Alt N1 Alt N2 Alt i3 Alt /4 Alt N5 Alt Y6 Alt #7 Alt N8 Sec. Days Chem Equip Qem Eouio Wd Sk lite Mason Electrical Y..N.D., Inc. Willmar, Mn. R 280 $1,166,900 2,000 Deduct $6,000 Deduct $18,300 Deduc $3,650 Deduct $15,900 Deduct $6,000 Dedu t $13,0011 Ded $10,000 Add Del's Construction LeSueur, Mn. X 160 1,094,579 2,080 Deduct 6,240 Deduct 19,470 Deduc 3,796 Deduct 15,800 Deduct 13,000 Ded ct 11,925 Ded 9,420 Add Bratochvil Construction New Prague, Mn. x 200 1,115,100 2,000 Deduct 6,000 Deduct 18,400 Deduc 3,650 Deduct 30,300 Dedu t 7,500 Ded ct 1,800 Add 9,700 Add Hasslen Construction ' Ortonville, Mn. x 180 1,140,000 2,000 Deduct 6,350 Deduct 22,000 Deduc 3,850 Deduct 12,000 Dedu cl t 13,000 Ded ct 21,000 Ded 9,500 Add Gopher State Contractor Rice, Mn. Miller,Miller G Mac Hutchinson, Mn. 7( 0/15 1,097,800 2,000 Deduct 6,000 Deduct 19,420 Deduc 3,650 Deduct 13,059 Deduct 12,135 Ded ct 17,300 Ded 9,200 Add Lester's of Minnesota .Lester Praire, Mn. ;Building Constructors Minnetonka, Mn. E 210 1,158,300 2,000 Deduct 6,000 Deduct 161,000 Daduci 3,700 Deduct 13,000 Deduct 10,370 Ded cr 29,000 Ded None Raske Bldg. Systems Cosmos, Mn. Tervisscha Construction Willmar, Mn. x 210 1,086,000 2,100 Deduct 6,400 Deduct 121,5GO Deduci 4,000 Deduct 12,400 Deduct 7,700 Dedu t 4,300 Ded. None Lau Construction 'St. Cloud, Mn. Associated Builders Bismarck, ND x 220 1,148,367 None 3,535 Deduct 14,831 Deduci 3,535 Deduct 30,625 Deduct 6,536 Dedu t 3,078 Add 9,163 Add NMH Enterprises Watertown, Mn. �Salonek, Inc. Springfield, Mn. E.J. Pinske Bldrs. x 195 1,072,500 2,000 Deduct 6,000 Deduct 16,500 Deduc 3,650 Deduct 30,000 Deduc 12,500 Ded,cc 13,750 Ded 9,400 Add Marcus Construction Co. Prinsburg, Mn. • • • (612) 587 -5151 CITY OF HUTCHINSON 37'W,4SHINC ITON AVENUE WEST Hv i C NSC N .M /NN 5535C M E M O R A N D U M Date: April 18, 1985 TO: Mayor and City Council FROM: Ken Merrill Finance Director SUBJECT: Pool & Recreation Building Financ Cost of the facility breaks down as follows: General Bid $ 19007,850 Architect Fee 649350 Flooring & Equipment 60,000 $ 19132,000 Additional items not in this cost are the water and sewer service to the facility and the parking lot. Some savings may result in the • matter of sales tax and building permit fees if they are included in the present bid. Financing available and alternatives: Estimated on hand June 1, 1985 $ 9589800 Estimated interest earning bal. of yr. 15,000 Additional General Fund Balance Transfer 100,000 (Estimated bal at 12/31/85 would be $622,000) Additional Federal Revenue Sharing Transfer 100,000 (Estimated bal at 12/31/85 would be $387,700) *Park Land Sale (Jorgenson Lot) 5,000 *Public Site Fund - amount available 149000 *(Need favorable City Attorney ruling) Additional Tax - 1 mill rate 41,000 (Not available until 1986) r-J-, Office of McLEOD COUNTY Zoning Administrator a30 11th Street East - Court House GLENCOE, MINNESOTA 55336 Phone 864 -5551 Ext. 259 EDWIN E. HOMAN Administrator April 17, 1985 Mr. Gary Plotz City of Hutchinson City Clerk's Office 37 Washington Avenue West Hutchinson, MN 55350 RE: Parcel No. 06-315-00%-formerly the Satterlee Pit Dear Mr. Plotz: RECEIVED Q� rU �sx�c l - l L Gt62,3 As I indicated in our telephone conversation on Friday, April 12, 1985, the construction of a new waste water treatment facility is a use that is neither specifically permitted nor denied in the "A" Agricultural District; therefore, the use shall be considered prohibited. However upon request, a study and amendment may be initiated to provide for the facility in the Agricultural District. The amendment procedure would take approximately • sixty (60) to ninety (90) days, depending upon the recommendations to the Board of County Commissioners from the affected Board of Town Supervisors and the McLeod County Planning Commission. Prior to issuing a County land use permit for the facility, there are other areas of concern that you will need to consider. The possible environmental effects that may require an EAW and the location of the facility with regard to the Flood Plain District that is delineated on Panel 25 of 150 of the McLeod County Flood Insurance Rate Map (segment enclosed). The procedure for evaluating the flood plain and environmental review may require an additional thirty (30) days to sixty (60) days. I hope this brief explanation of the County's review process will assist you in evaluating the potential of this site. As you are probable aware, to escape the County's review you may want to consider annexation of adjacent property or a site within the existing city boundaries. If you have any further questions regarding this matter, please contact me. Sincerely, Edwin E. Homan McLeod County Zoning Administrator • EEH /san Encicsure f-e I 1 IPA 13 Ocitv of Hutchinson AREA NOT INCLUDED CHICAGO 5 4 BURLINGTON II i W—ZONE A ZONE C 7 8 COUNTY ROAD 89 ZONE C 18 Jr 17 16 " ZONE ZONE A 9 n ®RECEIVED'(�l April 17, 198SULTING ENGINEERS DIVERSIFIED INC. City of Hutchinson 37 Washington Avenue, West Hutchinson, MN 55350 Attn: Mr. Gary Plotz City Administrator Re: Wastewater Treatment Plant SurP2oo Alternate Site Investigation Moo "F'',e MN"P " °Rn rnooie �� �.e � 5569 Donohue Project No. 14079.000 J !612 422181 Dear Gary: As requested we have made a cursory review of changing he wastewater treatment plant site. Below is a short discussion of our findings. HISTORY • The past 5 years facility planning effort has only considered the parcel of land between the City tree dump and the armory site along Highway 22 and the South Fork of the Crow River. The existing facility plan indicates "the site was preferred by the City and the Public Participation Advisory Committee for its loca- tion immediately outside the City limits between two City -owned parcels of land ". This land is not owned by the city and the cost to purchase this land was esti- mated at $250,000. ADDITIONAL CONSTRUCTION COSTS In an effort to reduce the new facilities cost, the City Council has suggested using the City -owned "tree dump" site in lieu of purchasing the proposed parcel of land. The use of this alternate site would save on the purchase price of the new site, but would result in additional construction costs. The first added cost would be an additional 2,000 feet of force main to convey raw sewage from the existing treatment facilities to the new site. The extra force main length could cost up to $120,000, and would also result in additional frictional headloss which would increase annual electrical pumping costs by $1,500. Clearing the site of tree remnants and excavation costs in areas where broken concrete and rubble have been disposed would also increase construction costs. Soil borings and a more detailed engineering study would be required to determine how much additional clearing and excavation costs can be expected. In addition, it would still be necessary to purchase or obtain an ease- ment to occupy the land parcel facing the highway for force main construction. In discussions with MPCA, they may also require a review of all treatment alter- natives in light of the increased construction costs listed. MPCA CHALLENGES MPCA believes that a change of the proposed site at this time will have a serious impact upon the project — schedule. Agency "sign -offs" on the new site would be required in writing from the County, the Township, Minnesota DNR, and other Fish and Wildlife Organiza- tions. To obtain the Step 2 advanced allowance of approximately $380,000 this year, the facility plan must be "approvable" by July 1, 1985. A one -year delay in receiving this money would cost the City $38,000, based upon a 10 percent interest rate. MPCA stated that the existing approvable status of the • Facilities Plan would dissolve with a site change at this time. It is unlikely approvals can be obtained from all agencies in a time period which would allow the revised facilities planning report to be classified as "approvable" by July 1, 1985. DESIGN TIME LINE To qualify for fiscal year 1987 (FY87) Step 3 funding, plans and specifications must be submitted by Decem- ber 1, 1985. To meet this date, the design process must begin May 15, 1985 per the schedule contained in our agreement with the City. Since the new site will not be approved by this date, the December 1 deadline can be met only by starting design without an "approv- ed" site. Problems with site approval cuul`? necessitate a nonfundable redesign at an approved site if the site does not receive alternate approval. Miss- ing the December 1 deadline would result in delayed Step 3 construction funding. Proposed federal funding cutbacks beyond F'f87 may result in additional reduced funding levels for the construction phase of this pro- ject. � 1 Mr. Gary Plotz April 17, 1985 Page 2 E n LJ • CONCLUSION Based upon these considerations, we strongly recommend not considering an alternate plant site location. Added costs and potential lost grants greatly outweigh the benefits. To avoid falling behind schedule, we must proceed with the advanced facility plan portion of this project at the approved site immediately. In addition, to keep both the Advanced Facilities and the Design on Schedule we strongly recommend proceeding with purchase at your April 23, 1985 council meeting. A delay of even several weeks can have a ripple effort on the schedule for MPCA Final facilities plan approval, site layout and Value Engineering. We also request you consider purchase, or at least,- obtaining easements for the strip of land adjacent to STH "22" since set backs and right -of -way construction clear- ance, for the force main in or near STH "22 ", is not obtained and will not be for several months. Please call with questions information. Sincerely, or comments regarding this DONOHUE & ASSOCIATES, INC. Donald F. Roecker, P.E., Manager Governmental Liaison Activities Edward S. Nevers, P.E. Project Engineer ESN /d 1 j cc: Gary Warren Tom Heney TR /L /FVO Mr. Gary Plotz April 17, 1985 Page 3 RESOLUTION NO. 8017 RESOLUTION OF OFFER TO PURCHASE WHEREAS, the City of Hutchinson is seeking to obtain land to be utilized as the site for a Wastewater Treatment Facility, and; WHEREAS, the following properties have been considered as part of a suit- able site for construction of such Wastewater Treatment Facility: Boldt Property, legally described as: All that certain triangular shaped piece of land containing 51.13 acres more or less, lying south of the C.M. and St. P. Railroad right -of -way (as now located), in the southwest corner of the northwest quarter of Section 8 in T116N, R29W, together with all rights to road leading from said premises in a northerly direction to the public road, subject to easement granted to the Hutchinson Lighting and Manufacturing Company, said piece of land being the same as deeded to John Anderson by Warranty Deed dated September 17, 1917, signed by Christen J. Christensen and Marie Christensen, except the following described lands: Beginning at a point marked by an iron post on the west boundary line of section 8, T116N, R29W, which said point is 58.2 feet north of the south- east corner of Lot 8 of Auditor's Plat of Section 7 in said Township 116, • which said plat is on file in the office of the Register of Deeds in and for said McLeod County; thence running S44 °39'E 213 feet to an iron post; thence running S52 °44'E 262 feet to an iron post; thence running S17 °44'E 123.6 feet to an iron post on the south boundary line of northwest quarter of said section 8; thence running westerly along the south boundary line of said northwest quarter of said Section 8 to the southwest corner of said northwest quarter of said section 8; thence running northerly along the west boundary line of said section 8 to place of beginning. Kadelbach Property, legally described as: A legal description for this property was not provided, but the land is a 100' wide strip of abandon railroad right -of -way on the southwesterly side of State Highway No. 22, and is in the NW 1/4 of Section 8, Township 116 North, Range 29 West. Schimmel Property, legally described as: A legal description for this property was not provided, but the land is the portion of the NW 1/4, SW 1/4 of Section 8, lying northeasterly of the Crow River and in Town- ship 116 North, Range 29 West. WHEREAS, the City of Hutchinson has caused such properties to be appraised by a qualified, certified appraiser, and; WHEREAS, said appraisals were conducted with the knowledge and permission of the owners of said properties,the owners of said properties being permitted to • accompany the appraiser on his inspection of said properties, and the owners of said properties having been provided the results of said appraisals. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: �� -_�Z_ -� - RESOLUTION NO. 8017 PAGE 2 That the Hutchinson City Attorney is authorized to offer to purchase said properties from the owners thereof for a price not to exceed the appraised fair market value thereof. Adopted by the City Council this 9th day of April, 1985. Robert H. Stearns Mayor ATTEST: Gary D. Plotz City Clerk • 40 (612) 587 - 5151 - - yar�A CITY OF HUTCHINSON {v _ H1rVS(---)N, ,klINN. M E M 0 DATE: April 18, 1985 TO: Mayor and City Council FROM: Director of Engineering RE: Repair Ground Storage Reservoir Water Treatment Plant Site Bids were received for the above repair Work, ranging from $154,965.00 to $230,056.00. I recommend awarding a contract to Acton Construction of Hugo, Minnesota in the amount of 31549965.00. • MVP /pv cc: Ken Merrill Ralph Neumann Dick Nagy • Marlow V. Priebe Director of Engineering �- G v0HUT(612) 587 -5151 DH ASON, CITY OF HUTC HINSON 3 w,as;,vc oN vE,vur Iv MINN .55 3160 M E M O R A N D U M DATE: April 18. 1 TO: Mayor and Council ------------------------------ FROM: Ken Merrill, Finance Director ------------------------------ SUBJECT: Water & Sewer Fund Financ— — in -------- - - - -- — — — — — — — — — — — — — — With this agenda are two major purchases from the water and sewer fund. We have a good cash balance as of 12/31/84 $1.2 million. (We do have debt service requiring $251,000 in 1985.) Items we are looking at for 1985 are presently 3 with major dollar impact. 1) Design - Waste Water Plant $ 633,000 • 2) Storage Tank Repair 155,000 3) Land Acquisition (Wastewater Plant Site) 248,200 At this time, we would ask the use of water sewer funds for items 2 & 3 on a temporary basis. When the bond issues are in place for 1985, we will have a proposal for item number 1 and possibly 3. Until that time, we request the use of in- ternal financing. 0 r C; S 0 �01 rieke carroil Vciates,inc. architects engineers land surveyors • 1011 first street south post office box 130 hopkins, minnesota 55343 612- 935 -6901 /K^^( %�.APR 1r79�35 N tl _W�yy.-n N cc • �rLJ Ili BY w April 19, 1985 City Council City of Hutchinson 37 Washington Avenue West Hutchinson, MN. 55350 RE: REPAIR GROUND STORAGE RESERVOIR RCM FILE NO. 841805 -0 Dear Sirs: Bids were received Thursday, April 19, 1985 for the repair of the ground storage reservoir. A total of nine general contractors bid on the project with a total base bid price range of $154,965.00 to $230,056.00. The five lowest bidders are as follows: Acton Construction, Inc., Hugo, MN $154,965.00 HMH Enterprises, Inc., Watertown, MN $161,800.00 ABE Construction Co., Inc., Plymouth, MN $1649000.00 Merrimac Construction Co., Anoka, MN $181,873.00 ACG, Inc., St. Paul, MN $184,740.00 All proposals were accompanied by a bid bond in the amount of 10 %, together with the certified copy of the power of attorney. A complete copy of the bid tabulation is attached to this letter. The low bid contractor, Acton Construction, is a well known and experienced contractor in the area of concrete and treatment plant construction. RCM has worked with this organization in the past and have found their work to be satisfactory. It is our recommendation that the City award the construction contract for the repair of the ground storage reservoir to Acton Construction, in the amount of $154,965.00 and you authorize them to proceed as the sign contract, bond and insurance forms are approved. Enclosed are copies of the Owner /Contractor Agreements. After you review, please forward three copies to the Contractor for his signature. City of Hutchinson April 19, 1985 Page 2 If you have any questions regarding the above recommendation, I would be more than willing to meet with you and discuss the situation. Ve u yours C. S. Barger, P.E. RIEKE CARROLL MULLER ASSOCIATES, INC. CSB:cw Enclosure cc: Marlow Priebe, City Engineer Jim Schaeder, City Attorney Mike LaFrance, RCM i • • REPAIRS TO GROUND STORAGE RESERVOIR R1EKE– CARROLL– MULLER ASSOCIATES, INC. ADDRESS CORP.— PART. -1ND SIGNED BY TITLE JBBIID- SECURITY ADDEI NDUM 1. Crack flushi Hugo, Mn. 11000 ft. @ '2. Crack repair P.K. Miller 11000 ft. @ 13. Cores Pres. B.B. 4 ft. @ 1 &2 1 &2 1 &2 14. Lump sum TOTAL BASE BID jSub- contractors: Epoxy grout Completion time: ,l. Start 2. Complete-Cell 1 '3. Complete Cell 2 j4. Final comp. ,Remarks: Acton uonst. ACG Inc. HmH Enterprises Hugo, Mn. St. Paul, Mn. Watertown, Mn. Co rpk Corp. Corp, P.K. Miller T. McCormick G.E. Henricks Pres, V. Pres. Pres. B.B. B.B. 1B.B. 2,000 20 my 12,19 3' 1 3.500 y 15, 810 TABULATION HUTCHINSON, MINNESOTA 2:00 P.M. ABE Const. I Plymouth, Mn. . inomas 1 1 1,000 45 —JO— Sept 1, PROJECT. 841805 -0 DATE: April 18, 1985 Merrimac Const. ACG Inc. R. W. Carlstrom Anoka, Mn. St. Paul, Mn. Mankato, Mn. Corp. Corp. Corp. J. Szurek T. McCormick J. Carlstrom V. Pres. Pres. -Pres, B.B. B.B. B.B. 1 &2 1 &2 1 &2 3 3,470 2 2,000 3 31150 2030,20,300 159 15 000 18 18,450 ?A6 1-144 24n 1,040 156.959 167,500 163,625 181,873 1184.740 186,265 t 10 10 10 45 45 30 60 90 60 90 120 Puly 15,1985 BID TABULATION REPAIRS GROUND STORAGE RESERVOIR PROJECT :_ 841805 -0 a HUTCHINS• MINNESOTA RIEKE —C OLL— MULLER ASSOCIATES, INC. 2:00 P.M. DATE: April 18, 1985 CONTRACTOR ADDRESS Anoka, Mn. Plymouth, Mn. St. Paul, Mn. CORP,— PART. —IND. Corp. Cori), SIGNED BY R. Young Thies TITLE Pres. PrPs. __ BID SECURITY B.B. B.B. B.B. ADDENDUM I & 2 1 & 2 & 2 ITEMS 1. Crack flushinq 11000 ft. @ 15 15 00 7P onf) 2. Crack repair 11000 ft. @ 4 18 18,450 18,000 3. Cores 4 ft. @ 260 19040 350 1,400 14 rr 4. Lump sum 177,297 180 295 205,000 TOTAL BASE BID 199,937 203,295 230,056 Sub - contractors: Epoxy grout Completion time: 1. Start 10 2 2. Complete Cel 1 1 3. Complete Cell 2 4. Final comp. July 19o198 -- ug 1, '1985 Remarks: (612) 587 -5151 CITY OF HUTCHINSON 3? 6 LASHING T i)N A 1/ENuE WEST HU7CHINSON ,�IiNN_ SSS�O TO: Mayor & City Council FROM: John McRaith, Assistant Recreation Director DATE: April 18,1985 SUBJECT: Purchase of Park Tractor The Parks & Recreation Department will open bids for anew trac- tor at 2:00 pm. on Tuesday, April 23. From the information I have received thus far, I am confident we will have some very good bids. I would urge you to make a decision on the tractor immediately. I have discussed the financing with Ken Merrill and we are both comfortable with the arrangement made. The tractor is essential to our department especially during this time of the year. The tractor is needed for our dandelion spraying operation, which will begin shortly. The shelter construction at Roberts Park and tree pruning are two other areas for which this piece of equipment is badly needed. The new tractor will give us the capability to do these heavy duty type of jobs for which the John Deere 2020 was not originally intended. klm TO: FROM: SUBJECT: r (612) 587.5151 CITY OF HUTCHINSON 37 WASHING TON AVENUE WE-S, TI HUTCHINSON, MAN 55350 M E M O R A N D U M DATE: April 18, 1985 MU.Qr- agd_CjtX CoarLQU - - - - - - - - - - - - - - - - - - KenMerrill. Fi-naIlcgpire,Qt,Qr - - - - - - - - - - - - - - Park Tractor Financ _jqg - - - - - - - - - - - - - - - - - - Financing of the park tractor (bids to be opened on Monday) is proposed as follows: 1. Rental dollars paid to Central Garage $ 2226 2. Money available from Park Dept. 4000 $ 6226 Balance to be financed by Central Garage Fund until 1986. In 1986, the budget of Park Department will pay any balance re- maining to Central Garage Fund. (We are estimating $6000 - $8000 needed after trade -in.) 16 0 0 R E P A I R P A R T S ARS3370 Engine Gasket Set 1 @ 62.21 848767 Packing 4 @1.97 7.88 AR71617 0' Ring Kit 4 @5.62 22.48 F19044 Oil Filter 1 @ 3.25 T20326 Rear Oil Seal 1 @ 74.08 R49516 Gasket 1 @ 7.27 T20182 Head Bolt 14 @1.81 25.34 T20184 Head Bolt 4 @2.49 9.96 AR71590 Kit, Cylinder Linner with Pistons & Rings 4 @123.60 494.40 AT10123 Rod Bearings 4 @10.73 42.92 TS26T Rod Bushing 4 @7.73 30.92 T19173 Rod Bolts 8 @4.90 39.20 AT21139 Crankshaft Bearing 1 @ 30.12 AT21140 Crankshaft Bearing 2 @12.33 24.66 T23474 Crankshaft Bearing Bolt 6 @11.09 66.54 AR62979 Oil Pump 1 @ 39.44 AT18049 Camshaft 1 @128.49 AT20728 Air Cleaner Filter 1 @ 13.00 AT22962 Thermostat 2 @5.33 10.66 AR62244 ' Carburetor 211.96 T36236 Gasket 1 @7.79 7.79 T21448 Shaft Clutch Pedal 1 @ 9.30 T21998 Bushing Clutch Pedal 1 @ 3.03 AR66923 Clutch Disk 1 @ 63.32 T22194 Clutch Plate 1 @101.65 T22195 Clutch Plate Powershaft 1 @ 94.16 AT17464 Bearing Thrust 1 @ 9.62 T22197 Leuer, Clutch 3 @21.59 64.77 T27707 Clutch Spring 3 @ 1.81 5.43 AR75603 Hyd. Filter 1 @ 3.99 AR39168 Hyd. Pump 1 @573.64 AR65688 Brake Line 1 @ 3.07 . AR65688 Brake Line 1 @ 2.30 T21813 Brake Check Valve 2 110.14 20.28 AR54929 Brake 0' Ring Kit 1 @ 9.68 T30687 Gasket 1 @ 21.22 T21743 Wheel 1 @143.40 Repair Parts Page two AT20945 AT27130 T23118, T21669 AW19747 AT21047 Tie Rod Tie Rod Bushing Pin Valve Complete New Crankshaft Labor Outside Machine Work Crankshaft & Clutch 2 @ 39.89 79.78 2 @ 57.10 114.20 2 @ 4.24 8.48 1 @ 13.78 1 @211.28 1 @640.95 $2,908.95 @ $24.00 960.00 "t�l( 100.00 $4v909.90 • 0 0 I 1 PERFECT CIRCLE ?! MACH f N E SHOP Quality Parts Perfect Circle f ( VICTOR N° 14047 G.T.C. AUTO PARTS OF HUTCHINSON 31 1st Ave. N.E. Hutchinson, MN. 553SO Phone: 587 -2618 Customer Name Address: (street) (city) (state) Izip code) Phone No.: Contact: Date Rec'd: S� 8' o IaT Year. � Instructions: Make: O OY\ .- &o Model: Z Cyt.: _. Part No. Dty. Description Price List Net Each Total ! 2.7R 3S, r-2- 1FY 0A. ).7f % TM s _ - (35.77 •— �%O, 16 is 7 104os sd • LO // /�. / /te►lr r:. �e s-Albtf t/3 W/ 111 om & , a 9•!Fev a 3. Po VV a.gg r .67 /% • fi 1 / Total Parts Total Labor Shop Mat. G� Grand Total �Coartoal BLOCK WORK Cyl's Oversize Price Remarks 13 Disassemble engine fj- 14 Assemble engine 15 Clean block 3--- 16 Cylinder rebored 11 Cylinaer honed -- 18 Repair block and resurface 19 Install cylinder sleeves �-- 20 Install cam bearings --- SUB TOTAL boovcow HEAD WORK C I'S Oversize Price Remar 01 Disassemble-clean & assemble head 02 Resurface cyl. head 03 Repair cyl. head -cast & alum. 04 Reface valve and seats 05 Replace valves O6 Install valve seats ^ 07 Install valve guides SS — 08 Check valve springs �"- 09 Remove and replace head studs 10 Machine guides -P.C. seal 11 Harley Seat Inst. 12 Pressure Testing SUBTOTAL Jobbwco• PISTON AND ROD WORK Cyl's Oversize Price -== Remarks _ - - - -• _`�= - 21 Press & tit pins -_ 22 Align rods 23 Recondition rods �-- 24 IMisc. %rK 1C1D -- SUB TOTAL jowem BRAKE DRUM AND ROTOR WORK Price Remarks 25 Brake drums turned 26 Rotors turned 27 Remove & install axle brg. 28 Tractor b kes (Poo •s SUB TOTAL - law LABOR TOTAL 1;1 Or (612)5875151 /,Z177, 1r w .;'CITY OF HUTCHINSON TO: Mayor & City Council FROM: John McRaith, Assistant Recreation Director DATE: April 22, 1985 SUBJECT: Park Tractor Bid • 0 The bid opening for the purchase of a used park tractor was held at 2:00 p.m. on Monday, April 22nd. We received one bid from Tepley Equipment of Glencoe with six differenf- alternatives . I would like to recommend that we accept the lowest bid of the six which is $12,000 for the International 886 including the trade -in of the John Deere 2020. With the repair estimate of $5,000,(enclosed in packet) the value of our 2020 is worth less than the estimated cost of repairs. By spending an additional $7,000 over the cost of re- pairs, we can update the tractor from 1968 to 1981 and get additional horsepower we need to accomplish our present tasks. klm PROPOSAL FORM City Clerk 37 Washington Ave. West Hutchinson, Mn 55350 Dear Sir: We, the undersigned, doing business as Tep v Equipment Inc, and hereinafter known as the Bidder, hereby propose and, if this proposal is accepted, agree to enter into an agreement with the City of Hutchinson, and to furnish the vehicle, machinery or equipment, all in strict accordance with the specifications entitled "SPECIFICATIONS FOR PURCHASE OF ONE (1) USED JOHN DEERE #2940 TRACTOR OR ONE (1) USED INTERNATIONAL #886 TRACTOR ". The undersigned hereby certifies that an examination has been made of the specifications, and hereby proposes to furnish the vhhicle, machinery or equipment described, in conformance with these documents. is 41 ,N1„I: • Total Price Bid - Used International #886 $16,00000 - BID NUMBER TWO Total Price Bid - Used John Deere #2940 none BID NUMBER THREE - Total Price Bid - Used International #886 Less Trade -In 1968 John Deere 20 -20 $12100040 BID NUMBER FOUR - Total Price Bid - Used John Deere #2940 Less Trade -In 1968 John Deere 20 -20 none Accompanying this proposal is the Bid Security required to be furnished by the Advertisement for Bids, the same being subject to forfeiture in the event of default by the undersigned. In submitting this bid, it is understood, that the right is reserved by the City to reject any or all bids, and it is agreed that this bid may not be withdrawn for a period of thirty (30) days from the opening thereof. If a corporation, what is the State of Incorporation? Minnesota If a partnership, state full names of all co-partners. Official Address: Firm Te p ]Eguipment Inc Hwy 919 Feast Box 156 By: S=; ti- Glencoe, MN 55336 Title: By: Dated: Title: I] L �y 1 Teply Equipment Inc. Hwy. 212 East Glencoe, MN 55336 12.8645571 Alternate Bid City Clerk 37 Washington Ave. West Hutchinson, MN 55350 Dear Sir: We., Teply Equipment Inc., do hereby submit to YOU an alternate bid according to paragraph E of the General Specifications sheet. • Model: John Deere Tractor #2940 MRM Engines 85 hop* Diesel Comfort Cover: alternate to cab Hitch: 3 point hitch (category 2) Tires: 18*4 x 34 with fluid Hours: 1375 Actual Hours Warranty: 100 Hours or 90 Days Bucket, 81: John Deere (new) Model 260 loader (quick attach) Transmission: 16 Speed, w/ high low shift on the go 0 O Total Price Bid - Used John Deere #2940 with loader ~' • Total Price Bid - Used John Deere #2910 with loader p a Less Trade -In 1968 John Deere 20 -20 �� O 0 O C� • r �' (6121587 -5151 f vI I / V ee I %I / %F 1400 %.Viv7 37WASh'INGTONAVENUE 'NEST HUTCHINSON, MINN. 55350 M E M O R A N D U M DATE: April 23, 1985 T0: Mayor and City Council FROH. Water Billing Department ------------------------------ SUBJECT: Delinquent Water Accounts Attached is a listing of the delinquent water accounts for the month of April. Recommend water service be discontinued on Monday, April 29, 1985, at Noon. t• L -350 -0614 -031 Denn s Wedge 614 rd Ave. ,Z.W. Hutchin n y0 55350 614 fh, 4e. SW 115 . Oq cc: nis Witt 1416 ioneer C No hfield NTN 5 57 2 -255- 0324 -071 Mike Maiers 324 Boulder Circle Hutchinson MN 55350 324 Boulder Circle 125.11 2- 350 -0505 -021 Richard Mattson 505 Dale Street Hutchinson MN 55350 505 Dale Street 82.31 2- 620 - 0530 -051 Charles Parsons 530 Larson St. Hutchinson MN 55350 530 Larson Street 63.58 2- 700 - 1320 -001 Ronald J. Thompson 1320 McDonald Drive Hutchinson MN 55350 1320 McDonald Drive 32.63 3- 535 - 0425 -053 Rick Hanson 425 Huron St. Hutchinson MN 55350 425 Huron St. 77.63 cc: Bruce Kopesky 430 Shady Ridge Road Hutchinson MN 55350 2- 070 -0565 -081 David Norton 565 Fourth Ave. SW Hutchinson Mn 55350 565 Fourth Ave. SW 58.89 Promises to pay 5/1/85 2- 345 - 0744 -011 Odella Radtke 744 Craig Ave. Hutchinson NAT 55350 744 Craig Ave. 77.63 2 -465- 0626 -081 Chris Johnson 626 Harmony Lane Hutchinson MN 55350 626 Harmony Lane 65.92 2- 650 - 0511 -011 Kathy Piehl 511 Linden,Ave. Hutchinson MN 55350 511 Linden Avenue 51.68 Promises to pay 5/1/85 2- 665 - 0535 -063. Northstar Realty 688 Hague Ave. St. Paul MN 55104 535 Lyndale Ave. 27.74 2_;,,0_,7638_071 George Helget 638 Fifth Ave. SW Hutchinson Mn 55350 638 Fifth Ave. SW 51.97 Promises to pay 4/26 m. 0- 0225 -011 da rnW35H 225 le S eet Hutch ee 55350 225 Street 42. es 2- 585 - 0621 -081 Mrs. Ruth Piehl 621 Juul Road Hutchinson Mn 55350 621 Juul Road 79.97 - Promises to pay 5/3/85 2- 675 -0544 -031 'Keith Krommenhoek 544 Madson Ave. Hutchinson MN 55350 544 Madson Ave. 84.65 Promises to pay 5/1/85 3-535- 0215 -091 Don Kramer 215 Huron St. Hutchinson MN 55350 215 Huron St. 115.36 • April 15, 1985 To the Hutchinson City Council: This letter is in regard to lot #11 in the Selchow and Jorgenson addition on Jorgenson Street which the city of Hutchinson has for sale. We are interested in this property and make an offer of $10,000 in cash for it. 1��rG Sheryl Schlueter Lloyd Schlueter jj(67?) 879, Awl H�r�N, CITY OF HUTCHINSON tVASH /NG,ON AV�NUr tli / i CHINSON MJNN 55350 M E M O R A N D U M DATE: APRIL 15, 1985 TO: _ MAYOR AND CITY COUNCIL _ _ _ _ _ _ _ _ _ _ _ _ FROM: _RALPH NEUMANN _ _ 9Z-- _ _ _ _ _ _ _ _ _ SUBJECT: —CITY OWNED PROPERTY _ _ _ _ _ _ _ _ _ _ _ _ _ B On December 21, 1981 the City of Hutchinson purchased a rectangular piece of land located adjacent to the 2nd. Ave bridge • and Erie Street from Leonard Miller. Terms of this contract allowed Mr. Miller to farm this land at no cost to himself until December 31, 1984. At the present time (after notifying Mr. Miller) the city is now utilizing an area along Erie Street to dump clean fill with the purpose of building the road shoulder wider. In talking to Mr. Miller, he has indicated an interest to continue farming this small tract (2to 3 acres) rent free. I feel this a fair agreement on a year to year basis as it eliminates the cities responsibility in mowing and keeping the weeds down. A stipulation being made the land must be plowed back in the fall. tlltlAatt , AAAA AuARSS OR CAeM RANT. 4ltu.1u, IN,rv.l Clou.. n..c. So,....1....... OR this .. 21st_ A af December ._ _. 1081 , it is agreed that City of Hutchinson , a municipal colpdration, _ ....... ......................... .__.... AS LESSOR hereby leases and rents to .... Leonard G.-Miller _... __ . ... ................. .. _ __ ... __._. d3 LESSEE as feeble lad lying ie McLeod ... ... ... ...... ._._. Coal ...... Mi,OA999ta__.. ._. _.. described as follaws, to•:•il: Lots 1, 2, 3, and 4 of Block Nineteen (19), Townsite of Hutchinson, South Half. i Lots 1, 2, and 3 of Block Forty -one (41), Townsite of Hutchinson, South Half. Lots 1, 2, 3, 6, 7, and the East sixty -six (66) feet of Lot Five (5) in Block Forty -two (42), Townsite of Hutchinson, South Half. Lot one (1), Block Sixty - six (66), Townsite of Hutchinson, South'Half. L dml:o._... --. _._.... , rappnQiy- ....--. ...... .... Ranya Joe the tees of ._. threw .M ...... ..... _.._. yeas.. beginning with the ..... ,..lsS ........ ............ dq of..44MUyO;y, . .................. 10..82.. od edi ►y_Dec®he.[..31,...198A....... SAID LESSEE, in s idesaliew of said lease, hereby sowaanle with said leader u fadilrwe, to -silt e aMrl TSN M Ada pan r SAM ISpaSr Sol M rY Sold r fYwanl Lessee, and /or his assigns and heirs, shall have the right to grow crops on the tillable lend above described. Lessee shall be responsible for weed control during the term of this Lease. Lessor may terminate this Lease at an earlier date by giving written notice to Lessee terminating said Lease. If said Lease is terminated during the crop season, Lessor will compensate Lessee for the damage to trope, if any. OTRa AT1Da 1 Tkal M wm wepe WI wM .aa.rdlY r W n.r Mpet.Se r W wgalDr IAn.K .M rrW era Wad k.`, Iri Iywgoi AM San Lr rwrrr, r Wt Sad. SURD, Ttat be veal r Soy pea been W Y W sera ",gal rna"ulNO, Thai M wm arapeaYr W All Sena N Ihrgghta, par ani we. waseal Thal be will keel d.wle ae wood* neh Sore and will SSI allow O. r« in rater* gW at spy raver PTaAW AND k nuns. Tbal V win AM Mara or Sall or pwnw an ra.n. gY err 4. an Sold War whSea rant needed as .....S. ghveea. TLOWINO3 Thal he will. Ipepee W, airline hareeellar neh ,Sap rah rear. pww SW wad as fNwwa . ..... .........................._.... .... No plowback required. ua that w saw be Shall ran So do be. M array Sol \eel.ee Sold Near ,e anise upon safe wad and to w pww {M aaaw Y rM eepnpeo .1 tan New. Use &&", That be pin .. ... .t his San n.p.eg., eoplan .M opiall ell dope.,. w IpepnlsrnW an Sold Wad Sena by W .Y ai MN M MelWeneal sad the, an .Ilyr ,nailer shalt an rVn r 1alWwnl .. ...... .... UMTRT ST LUSSOS. That Safe 1 ., pear rwe .M. Sold load era Say Rae 1. $a.m. Me Sapen AN to peak. pea► r.rlrg miss Ipepm.al a V Ws door .eeegYq, .r w preaan toy Sao ape..Mbe nM. pra.MW M .hall rI ".a. n.ea sad saw peppery a Sold Magn. ASA1OMeIr.MT AND SRa1.RTTIMO. Thai her wm appear Wars this Inn one *Saint oar Mel at geld IaSd wMheat Sasso., he wash, 0 Sold wage. SECURITY INTEREST: To eoCurs the payment of the rents hSraln .peclfled and ILe lallhful perbrrnuaCS and Mrlcl fulfill- ment W .11 the t.yenanl. of Sap Neaee In lhl. le.w .v�sdlned. aged 1 .. dune Io-rrby Knot a .a�mlly Intone W said ler.q her hells, .urte.r,r. a galena, In WI c,up. ernwla, oar Fawn IIn ..W pr.mipe. durhm the term .d Ihl. ISU.r and 1. pruducw upd e.mtyarl right. VIth re.pvct Iho,ot. and ell protg,ds W all Th. lanais aeI'ee. not 1. .,II or Ul h,rwlw db„vre .f any of Said p,oPerty Sad IP cane of any default In the payment of Sold not, oar In p,rfurm In, .Sly of the c ,,o.oI. of Imn Irn.u, , r I. t.so any of saw priy,rrly le Sold or dwpusod oaf, or Mean the I.SSol h, flood wllh d,mo. hhowlf ho,e.'ur.. �c id leans k h,l0,1 Autlmr Ned and emWro.d to d.. clare the whole bum or any and all Some Secured herehy m he Immgdialely doe and po YRblr, Road b, any Such cam .hall luvr, In addllbo lu the Hatt. and rrni.dln rran Wd herehY. all rlahla and reno,dlro of a r.•.nr,J party under Ihr tl.It.rel Con ilrwrcl.l t'ult Ioother +pp11tS41, err S.Id )..or null reaulle ..,Id Iee.ee 11.:iw•n�Lle .uld mol.'r1y and L.Ikl It ay.IL1ho to avid Inlu.r at n n .. h, d,altlwled by Said leaver that N rasonabiy . -unve Ic.t b, b.,lll Yurt,e. Y:ip,n... of r,l.klna, hobbles, p,.",lag fur ale, .ell. like and the like, shall Ineluda the regeolahN anorngi love and It"] .aprowa .d r kl lenw.r E F-1 L "to c or retcadiars, it the "oduiauea ue,O Ouid duet*, the tato at sbau aeude, ." beta I" e,u,,e ionee,et ihan O. Or two eeedl.a .1 ... MOM .w le be •vueuil ad elau, "eumeu, dowl,ou auld beeauee, A. tuvt .Ilb W umedrr ees.e.abee a MW e.. I....... ",..a 1e blue at 11 stay, a. fee —Oka Ouu at suld VIO." by base .4 the these 1. 4yedau.6"I •.4 1$ A. each • e'. Of ..W nuWe ."" Le full ". Or IY f." 'rups, .hl -h ...at he, ..,u lau,l.dua seed. iume, •" ­,.— 1. —in.1hes 11 W p,..I.. .1. Old Oil., Mabee erve,* .. W. .. 1,.. ah.11 Me. tm amul.t. 'Ish, W rennn 4. '­.elue ..4, obw I'aue, '.'Idada theil he .. Of ".1, .10 am penvulleme, almill Mee all the rtebts ad leaddeer ender 'bft .—.1 hl J... Of ..'h -I "REND LM OF AND ROLDINO QV►kc lik" .6 the Nrnls.11w Of Was teem use I,paft ro-aealry, by ae" I.osee, • .1. I. 11.11d.A. he .11a , —.1pal Mrewder possOealu. at .11 auld lead 1. saw NOOOIl ..a the, le evue he k.11 ..I. W .hr l .11r1 e. YO.Uw . rW let. .r nmer ve-e.,,, . li,tWia re.leled, k mU eme, " vueel.r." m • rp..aal a " samema. ." ause, le ..eh ..r, m .1411 ourve.due, .." 1. .14 leauser .". d. ". -Ter ' end -'I. .tall, h... the rvN,test 0. MIMI., he 6.1r rIW 1. nrn the mill, eaft.w., Ideritnia. u 1,, 1.,A reVneenl.tleea, .ulaeadols Lnd ..Wll cof the rb.pu,tivu "rlh, h.rrin and ethl- -411WItsWit. 'Qed- used AN thle ,1 In the M.Wim Sain", leclwao blue fuanlielme end "wit.r. the Whs.l.r riw,bar IWI.d. Me pjY mel am piur.3 thes In T.W.., Ww&O. Noth "Alm he" her"itte out fleet, Items, end *W. the day end your hVel,khafar, voritt.. CITY OF. )YTCHINSO,—A MUNICIPAL- CORPORATION, IN PRLSM(A OF By : -256 andA 4- U . h STATE OF ... nnnesots County of McLeod On this..— 7 n -------.day ot _pgcemti r IJ, M... before nad, a __--within wad for mid County and State, personally __tda anda knows to be Use person dewribed in and who "autsid the foregoing tostrundust, fund acknowledged thst___.hs_maoutad the swast ns__biJL_. fees wt sad dad& STATE Op_ Minnesota '.'�GRAW a N, I t ;'Lrl OC -L".4 MI"ESOTA County of— hQL2QA____ t._LEOO COUNTY Conur'Z31on no, LASY 24, IN? On and for said County, pwwn&Uy sapped" to and, personally known, who, being em► by me duly sworn. --- --- ........ did my that they we mpwuvsly the . MaY9T_____l'MMMT end the _City A4!qqi qt rat - o - r of the corporation owned in the foregoing iDetrucesint, and that the mial affixed to mid Inattrunheasat is the corporate we[ of said corporation, and that mid instruan•aL was signed wid Ad In behalf of mid corporaim" buuthority q its anexAsatiLSIty coumi and mid . Ralpll D. Westlunt_ ry D. P citz acknowledged mid instrum•nt to be the free act and dead of said co 4 41 I 0 0 0) ' K41 0.1 0 W a Q Oj 0 C 0 X U 0: I U E 4 41 I 4 (612) 587 -5151 'CITY OF HUTCHINSON 37 WASHINGTON AVENUE WEST - k HUTCHINSON, MINN. 55350 M E M O R A N D U M DATE: April 17, 1985 TO: Hutchinson City Council FROM: Hutchinson Planning Commission SUBJECT: Conditional Use Permit as requested by Larson / Dobratz Pursuant to Section 6.05, C5, of Zoning Ordinance No. 464, the Hutchinson Planning Commission is hereby submitting its findings of fact and recom- mendation with respect to the aforementioned request for a conditional use permit. HISTORY On March 26, 1985, Quentin Larson and Doug Dobratz submitted an application for a conditional use permit to allow the moving of a house from 613 2nd Ave. SE onto property located at 535 Franklin St. S. A public hearing was held at the regular meeting of the Planning Commission on Tuesday, April 16, 1985, at which time several persons voiced their concerns about the proposed • project. Mrs. Lucille Arlt, representing Mr. Hugo guester, 506 Main St. S., stated she felt a newer home would be more suitable for the area. Mr. John Fox of 4- Square Builders in Glencoe stated they intend to construct a new house next door and felt a new home would be better for the area. Mr. Melvin glockman of 545 Franklin St., stated his concern about what type of resident the house would draw. Mr. Bob Evans of 516 Main St. was concerned about water drainage in the area. Mr. Larson and Mr. Dobratz stated they had contacted 8 neighbors who had no objection to the proposal. FINDINGS OF FACT 1. The required application was submitted and the appropriate fee paid. 2. Notices were mailed to the surrounding property owners as well as published in the Hutchinson Leader on April 41 1985. 3. The proposal is in conformance with the requirements of a conditional use permit. RECOMMENDATION It is the recommendation of the Planning Commission that the afore- mentioned request for a conditional use permit be granted. • Respectfully submitted, Roland Ebent, Chairman Hutchinson Planning Commisson - q- - 6� 1 __ w w W- U) �%o J Y Z Q X LL �m r w J J Q • K = 20, RESOLUTION NO. 8022 RESOLUTION GRANTING CONDITIONAL USE PERMIT UNDER SECTION 6.07 OF ZONING ORDINANCE NO. 464 TO 46 ALLOW THE MOVING OF A HOUSE ONTO PROPERTY LOCATED AT 535 FRANKLIN ST. S. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: FINDINGS 1. Quentin Larson and Doug Dobratz of Hutchinson have made application to the City Council for a Conditional Use Permit under Section 8.03 of Zoning Ordinance No. 464 to allow the moving of a house onto property located at 535 Franklin Street South, with the following legal description: Lot 7 Block 57 - Townsite of Hutchinson, South 1/2 2. The City Council has considered the recommendation of the Planning Commission and the effect of the proposed use on the health, safety, and welfare of the occupants of the surrounding lands, existing and anticipated traffic conditions, and the effect on values of properties in the surrounding area and the effect of the use on the Comprehensive Plan. 3. The Council has determined that the proposed use will not be detri- mental to the health, safety, or general welfare of the community nor will it •cause serious traffic congestion nor hazards, nor will it seriously depreciate surrounding property values, and the proposed use is in harmony with the gener- al purpose and intent of the Zoning Ordinance and the Comprehensive Plan. CONCLUSION The application for Conditional Use Permit for the purpose designated is granted, based upon the findings set forth above. Adopted by the City Council this 23rd day of April, 1985. Attest: • Gary D. Plotz City Clerk Robert H. Stearns Mayor 9 -� a��� (612) 587 -5151 ��r�H' C1 T Y OF HUTCHINSON 37 WASHINGTON AVENUE WEST � HUTCHINSON, MILAN. 55350 M E M O R A N D U M DATE: April 17, 1985 TO: Hutchinson City Council FROM: Hutchinson Planning Commission SUBJECT: Conditional Use Permit as requested by Leonard Heimann Pursuant to Section 6.059 C5, of Zoning Ordinance No. 464, the Hutchinson Planning Commission is hereby submitting its findings of fact and recom- mendation with respect to the aforementioned request for a conditional use permit. HISTORY On April 1, 1985, Leonard Riemann submitted an application for a conditional use permit to allow the operation of a convenience store /gas station on property located at 640 Hwy. 7 East (former A & W). A public hearing was held at the regular meeting of the Planning Commission on Tuesday, April 16, . 1985, at which time there was no one present who objected to the proposal. FINDINGS OF FACT 1. The required application was submitted and the appropriate fee paid. 2. Notices were mailed to the surrounding property owners as well as published in the Hutchinson Leader on April 4, 1985. 3. The proposal is in conformance with the requirements of a conditional use permit. RECOMMENDATION It is the recommendation of the Planning Commission that the afore- mentioned request for a conditional use permit be granted. Respectfully submitted, Roland Ebent, Chairman Hutchinson Planning Commisson • CKII fo ii it 0 RESOLUTION NO. 8023 RESOLUTION GRANTING CONDITIONAL USE PERMIT UNDER SECTION 6.07 OF ZONING ORDINANCE NO. 464 TO ALLOW THE OPERATION OF A CONVENIENCE STORE /GAS STATION ON PROPERTY LOCATED AT 640 HIGHWAY 7 EAST BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: FINDINGS 1. Mr. Leonard Riemann of Hutchinson has made application to the City Council for a Conditional Use Permit under Section 8.08 of Zoning Ordinance No. 464 to allow the construction of a convenience store /gas station on property located at 640 Highway 7 East, with the following legal description: Beginning at a point 209 feet South and 542 feet West of the Northwest Corner of the South Half of the Southeast Quarter (SE 1/4) of Section 32, Township 117, Range 29, thence South 250 feet; thence East 125 feet; thence North 250 feet; thence West 125 feet to the point of beginning; being a part of Lot 10 of Lot 14 of Auditor's Plat of the West Half, Section 329 Township 117, Range 29, according to the map or plat thereof on file and of record in the office of the Register of Deeds in and for said County and State. • 2. The City Council has considered the recommendation of the Planning Commission and the effect of the proposed use on the health, safety, and welfare of the occupants of the surrounding lands, existing and anticipated traffic conditions, and the effect on values of properties in the surrounding area and the effect of the use on the Comprehensive Plan. 3. The Council has determined that the proposed use will not be detri- mental to the health, safety, or general welfare of the community nor will it cause serious traffic congestion nor hazards, nor will it seriously depreciate surrounding property values, and the proposed use is in harmony with the gener- al purpose and intent of the Zoning Ordinance and the Comprehensive Plan. CONCLUSION The application for Conditional Use Permit for the purpose designated is granted, based upon the findings set forth above. Adopted by the City Council this 23rd day of April, 1985. Attest: • Gary D. Plotz City Clerk Robert H. Stearns Mayor � d (612) 587 -5151 , %lUTCH'^ CITY OF HEr TCsm- 7F1VS0111 37 WASHINGTON AVE,� L' c" WEST -- - , HUTCHINSON, M I NN, 55350 M E M O R A N D U M DATE: April 17, 1985 TO: Hutchinson City Council FROM: Hutchinson Planning Commission SUBJECT: Variance Request as Submitted by Leonard Riemann Pursuant to Section 6.05, B3, of Zoning Ordinance No. 4649 the Hutchinson Planning Commission is hereby submitting its findings of fact and recom- mendation with respect to the aforementioned request for a variance. HISTORY On April 1, 1985, Mr. Leonard Riemann submitted a request for a variance to allow the construction of gasoline pumps 15' from the frontyard property line on property located at 640 Hwy 7 East (former A & W). A • public hearing was held at the regular meeting of the Planning Commission on Tuesday, April 16, 1985, at which time there was no one present who objected to the request. FINDINGS OF FACT 1. The required application was submitted and the appropriate fee paid. 2. Notices were mailed to the surrounding property owners as well as published in the Hutchinson Leader on Thursday, April 4, 1985. 3. It was the consensus of the Planning Commission that without the variance, the existing building would have to be moved, which would be a hardship to the property owner. RECOMMENDATION It is the recommendation of the Planning Commission that the afore- mentioned request for a variance be granted. Respectfully submitted, • Roland Ebent, Chairman Hutchinson Planning Commisson • l J • RESOLUTION ZONING ORDINANCE NO. FRONTYARD PROPERTY RESOLUTION N0. 8024 GRANTING VARIANCE UNDER SECTION 6.05 OF 464 TO ALLOW INSTALLATION OF GAS PUMPS 15' FROM LINE ON PROPERTY LOCATED AT 640 EAST HIGHWAY 7 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: FINDINGS 1. Leonard Riemann, has applied for a variance from Section 9,3a. of the Zoning Ordinance No. 464 for a variance of 10' allow the installation of gas pumps 15' from the frontyard property line on property described as: Beginning at a point 209 feet South and 542 feet West of the Northwest Corner of the South Half of the Southeast Quarter (SE 1/4) of Section 32, Township 117, Range 29, thence South 250 feet; thence East 125 feet; thence North 250 feet; thence West 125 feet to the point of beginning; being a part of Lot 10 of Lot 14 of Auditor's Plat of the West Half, Section 329 Township 117, Range 29, according to the map or plat thereof on file and of record in the office of the Register of Deeds in and for said County and State. 2. The Planning Commission has reviewed the application for a variance and has recommended to the City Council that the application be granted. 3. The Council has considered the effect of the proposed variance upon the health, safety, and welfare of the community, existing and anticipated traffic conditions, light and air, danger of fire, risk to the public safety, and the values of property in the surrounding area and the effect of the proposed variance upon the Comprehensive Plan. 4. Because of conditions on the subject property and on the surrounding property, it is possible to use the subject property in such a way that the proposed variance will not impair an adequate supply of light and air to adja- cent property, unreasonably increase the congestion in the public streets, increase the danger of fire, endanger the public safety, unreasonably diminish or impair health, safety, comfort, morals, or in any other aspect be contrary to the intent of the ordinance and the Comprehensive Plan. 5. The special conditions applying to the structure or land in question are peculiar to such property or immediately adjoining property and do not apply generally to other land or structures in the district in which such land is located. 6. The granting of the application is necessary for the preservation and enjoyment of a substantial property right of the applicant. It will not merely serve as a convenience to the applicant, but is necessary to alleviate demon- strable hardship or difficulty. Resolution No. 8024 Page 2 CONCLUSION The application for variance for the purpose designated is granted based upon the findings set forth above. Adopted by the City Council this 23rd day of April, 1985. ATTEST: Robert H. Stearns Mayor Gary D. Plotz City Clerk • 0 (612) 587 -5151 Hu�[H CITY OF HU CHIX 54.010 37 WASHINGTON AVENUE WE T _ - -�- HUTCHINSON, MINN. 55350 M E M O R A N D U M DATE: April 17, 1985 TO: Mayor and City Council ------------------------ - - - - -- FROM: Planning Commission ------------------------ - - - - -- SUBJECT: SKETCH PLAN SUBMITTED BY GERALD GASSMAN TO COUNTY ------------------------ - - - - -- (within two mile radius) The Planning Commission recommends that the §ketch plan be approved as submitted. • 9-� / (612) 587 -5151 (HUTCH/ CITY OF HUTCHINSON 37 WASHINGTON AVENUE WEST HUTCH/NSON, MILAN. 55350 April 18, 1985 MEMORANDUM TO: MAYOR AND CITY COUNCIL FROM: HAZEL SITZ, TRANSIT COORDINATOR S' RE: USE OF HUTCHMOBILE FOR AIRPORT DEDICATION Members of the Civil air patrol have requested consideration of the use of a Hutchmobile for the airport dedication and pork chop dinner on Sunday, June 16 (Water Carnival Sunday) from about 2 to 6 p.m. They would consider using the bus to bring people from town and possibly as a shuttle between a remote parking area and the airport facilities. . The Council might want to authorize this as a service to be provided for a city function, with fares waived. (It should be noted that in the past, when arrangements were made to use the bus for an exclusively private venture, there were objections raised by a local charter service on the basis of unfair competition.)** It would be understood that the bus would be operated by one of our regular drivers, as per the terms of our insurance and our transit grant. If the Council authorizes this special service, the civil air patrol should assume the responsibility for publicising and coordinating the service in the way best suited to the needs of the day. copy: George Runke, President, Civil Air Patrol Bob Powell John Miller ** Chart ^_r /School; 't � Bus rteaulation ' These assurances are hart of the rinal Application Narrative. ?eci-)ients cannot onerate an-- charter service which is not subject to public Utilities Commission regulation. Char^ for nrovidinq charter service nest be equal to or greater than those charged by author- charter service. 9 �. 40 (612) 587.5151 C CITY OF HU_#7%6ffH1PjSCrj 37 WASHINGTON AVENUE WEST HUTCHINSON, MINN. 55350 M E M O R A N D U M DATE: April 22, 1985 TO: — Mayor and City Council ---------------- - - - - -- FROM: Kaye.-Link SUBJECT: Non- Intoxicating On and Off Sale LicLuor Licenses The following establishments have submitted application to renew their non - intoxicating on -sale liquor licenses: Pizza Hut J's Pizza Garten Gold Coin Restaurant Godfather's Pizza Crow River Country Club Crow River Bowling Lanes The following establishments have submitted application to renew their non - intoxicating off -sale licenses: Warehouse Grocery Tom Thumb Food Market Southtown Mobil Erickson's Big D.Supermarket One -Stop Gas and Grocery George's Food & Fuel The Chief of Police, Dean O'Borsky has reviewed each of the applications and recommends approval APRIL 10, 1985 MR. GARY PLOTZ. CITY ADMINISTRATOR CITY OF HUTCHINSON 37 WASHINGTON AVE. WEST HUTCHINSON MINNESOTA 55.. =150 IN REGARDS TO THE PERMITS THAT ARE REQUIRED FOR THE 1985 HUTCHINSON JC WATER CARNIVAL. THE DATES FOR THIS YEARS CELABRATION ARE JUNE 14,15,16. I WOULD LIKE TO ASK YOU TO CONSIDER OUR APPLICATIONS FOR THE FOLLOWING PERMITS_ 1. STREET USE - TO CLOSE OFF THIRD AVE FROM MAIN STREET TO JAMES STREET, THEN LES KOUBA PARKWAY TO OPTIMIST RIVERSIDE PARK. FOR THE CARNIVAL MIDWAY SHOW JUNE 12 - 16TH. 2. CLOSE STREET FOR KIDDIE DAY PARADE, JUNE 15TH FROM 12:00PM TO 1 :30PM. ROUTE - START AT SOUTH SIDE OF PARE_ TOWERS ON GLEN STREET, TURN WEST ON 4TH AVE. SW TO GROVE STREET THEN NORTH ON GROVE TO SECOND AVE. THEN FINISH THE ROUTE AT GLEN ST. 3. CLOSE STREET AND ISSUE PARADE PERMIT FOR GRANDE DAY PARADE ON JUNE 16TH FROM 11 :00 AM. TO 4:OOPM. ROUTE - START ON LAk`E STREET TO 2ND AVE. SW, EAST ON 2ND AVE. TO FRANKLIN STREET, THEN SOUTH ON FRANKLIN STREET TO LINDEN AVE. 4. CLOSE STREET JUNE 15TH FROM 8:OOAM TO 11:30AM FOR MARATHON, 4TH AVE. BETWEEN GLEN AND GROVE STREET. 5. ISSUE PERMIT FOR FIREWORKS DISPLAY ON SUNDAY JUNE 16TH AT APPROXIMATLY 10:00 PM FROM LES KOUBA POINT. WE WILL BE ARRANGING TO HAVE THE FIRE DEPT. STANDING BY IF ANY ASSISTANCE IS NEEDED. 6. IN THE PAST THE CITY HAS TAKEN CARE OF THE MINI BIFFB NEEDED THAT WEEKEND. IN TALk:ING WITH YOU EARLIER GARY YOU SEEMED WELL INFORMED OF THE LOCATIONS AND TIMES THEY ARE NEEDED. 7. ISSUE PERMIT FOR A CONCERT ON SUNDAY AFTERNOON JUNE 16TH TO BE HELD AT THE FAIRGROUNDS FOLLOWING THE PARADE. THE JAYCEES, AS A NON - PROFIT ORGANIZATION, WOULD AFFRECTATE NOT HAVING TO PAY FOR THE ABOVE PERMITS AS TO DEFRAY OUR EXPENSES. WE REALLY APPRECIATE ALL HELP AND ASSISTANCE WE RECIEVE FROM THE CITY, THIS COMMUNITY CELEBRATION COULD NOT BE RUN WITHOUT YOUR HELP. IF YOU HAVE ANY QUESTIONS IN REGARD TO ANY OF THE EVENTS PLEASE FEEL FREE TO CONTACT ME AT ANY TIME. MY PHONE NUMBERS ARE 587 -6300 (WORK) OR 587 -4636 (HOME) . SI NCERLYY , • JOHN BRINKMAN 1985 WATER CARNIVAL COMMOU�ORE 9 --/z, MR. GARY F'LOTZ. CITY ADMINISTRATOR APRIL 10, 1485 CITY OF HUTCHINSON 37 WASHINGTON AVE. WEST HUTCHINSON MINNESOTA 55350 IN REGARDS TO THE PERMITS THAT ARE REQUIRED FOR THE 1985 HUTCHINSON JC WATER CARNIVAL. THE DATES FOR THIS YEARS CELEBRATION ARE JUNE 14,15,16. I WOULD L_IK:E TO ASK" YOU TO CONSIDER OUR APPLICATIONS FOR THE FOLLOWING PERMITS. 1. STREET USE - TO CLOSE OFF THIRD AVE FROM MAIN STREET TO JAMES STREET, THEN LES KOUBA PARKWAY TO OPTIMIST RIVERSIDE PARK. FOR THE CARNIVAL MIDWAY SHOW JUNE 12 - 16TH. 2. CLOSE STREET FOR KIDDIE DAY PARADE, JUNE 15TH FROM 12:00PM TO 1:30PM. ROUTE - START AT SOUTH.. -SIDE OF PARK: TOWERS ON GLEN STREET, TURN WEST ON 4TH AVE. SW TO GROVE STREET THEN NORTH ON GROVE TO SECOND AVE. THEN FINISH THE ROUTE AT GLEN ST. 3. CLOSE STREET AND ISSUE PARADE PERMIT FOR GRANDE DAY PARADE ON JUNE 16TH FROM 11:00 AM. TO 4:OOPM. ROUTE - START ON LAKE STREET TO 2ND AVE. SW, EAST ON 2ND AVE. TO FRANK::LIN STREET, THEN SOUTH ON FRANKLIN STREET TO LINDEN AVE. 4. CLOSE STREET JUNE 15TH FROM 8:00AM TO 11:30AM FOR MARATHON, 4TH AVE. BETWEEN GLEN AND GROVE STREET. 5. ISSUE PERMIT FOR FIREWORKS DISPLAY ON SUNDAY JUNE 16TH'AT APPROXIMATLY 10:00 PM FROM LES K:OUBA POINT. WE WILL BE ARRANGING TO HAVE THE FIRE DEFT. STANDING BY IF ANY ASSISTANCE IS NEEDED. 6. IN THE FAST THE CITY HAS TAKEN CARE OF THE MINI RIFFS NEEDED THAT WEEKEND. IN TALKING WITH YOU EARLIER GARY YOU SEEMED WELL INFORMED OF THE LOCATIONS AND TIMES THEY ARE NEEDED. 7. ISSUE PERMIT FOR A CONCERT ON SUNDAY AFTERNOON JUNE 16TH TO BE HELD AT THE FAIRGROUNDS FOLLOWING THE PARADE. THE JAYCEES, AS A NON - PROFIT ORGANIZATION, WOULD APPRECIATE NOT HAVING TO PAY FOR THE ABOVE PERMITS AS TO DEFRAY OUR EXPENSES. WE REALLY APPRECIATE ALL HELP AND ASSISTANCE WE RELIEVE FROM THE CITY, THIS COMMUNITY CELEBRATION COULD NOT BE RUN WITHOUT YOUR HELP. IF YOU HAVE ANY QUESTIONS IN REGARD TO ANY OF THE EVENTS PLEASE FEEL FREE TO CONTACT ME AT ANY TIME. MY PHONE NUMBERS ARE 587- 6300 (WORK:) OR 587 -4636 (HOME). SIN CERLY, JOHN BRINK::MHN 1985 WATER CARNIVAL COMMODORE 9 --/& HUTCHINSON FIRE DEPARTMENT 205 Third Avenue South East HUTCHINSON, MINNESOTA 55350 — - Chief., Orlin "Burch "Henke M E M O R A N D U M DATE:—March-4, 1985 — — — — — — — — — — — — — TO: City Administrator FROM: Fire Chief - SUBJECT: Stop sign on corner of 3rd Ave SE & Jefferson Street On Wednesday February 27, 1985 I met with Sheriff Duane Kopesky regarding the stop signs at 3rd Ave. SE and Jefferson Street. I explained to him the problems that the fire department has with traffic at this intersection during fire calls. My request to Sheriff Kopesky was to remove the stop signs on 3rd and install them on Jefferson Street. Sheriff Kopesky agreed with me after taking a look at what happens at this intersection. He told me that he would be in contact with Mr. Robert Kattor from the County Highway Department. Mr. Kattor stopped on Wednesday afternoon to talk to me about the problem and stated that the City of Hutchinson should send a letter to the McLeod County Board of Commissioners requesting a change of right of way to make 3rd AVE SE a through street and have stop signs on Jefferson Street at that intersection. I have also talked with Dean on this issue and he concurs that it should be changed as soon as possible to avoid any problems. �I would like to request that you contact the County Board with this issue so it can be changed r If you have any questions feel free to contact me. V */� (612) 587 -5151 HUTCH CITY OF HUTCHINSON 37 W'AS.�-r, NG TON AVE ^tUE W ES' - HUTCHINSON, M/ %-N. 55 -50 M E M O R A N D U M DATE: April 18, 1985 TO: MAYOR AND CITY COUNCIL ------------------------ - - - - -- FROM: KAYE LINK ------------------------ - - - - -- SUBJECT: LI INTOXICATING UOR AP PLICATION SUBMITTED BY LARRY BETHKE - - - - -- 4-------- - - - - -- Mr. Larry Bethke has submitted an application for an intoxicating liquor license for the future VICTORIAN INN. If approved, the license will not be issued until such time that the business opens, which Mr. Bethke anticipates by November, or December of this year. 0 0 • jW_rH(612) 587 -5151 LJTCHINSON, CITY OF HUTCHINSON WASHINGTON AVENUE WES- MINN. 55350 M E M O R A N D U M DATE: April 18, 1985 TO: —Mayor and City Council — — — — — — — — FROM: Gary D. Plotz, City Administrator SUBJECT: —Security Light In Rear Of Liquor Store — -------------------- — — — — — — — — The existing lighting for the property owned by Lloyd Allen (cold storage facility) will be moved, creating a need for lighting to the rear of the liquor store. Authorization is requested to install a security light in the rear of the liquor store as discussed with Councilmember Marlin Torgerson. 9 -",,) 0 April 18, 1985 The Honorable Mayor and City Council The City of Hutchinson City Hall Hutchinson, MN 55350 Dear Sirs: I request an approval to sell Parcel B as shown on attached survey drawing, from the total parcel description which is also shown on the survey. Sincerely, • � � T �'L(? fZZt° C�' 3721 -' s�/ June Redman Property Owner JR:jjr Enclosure • c� p c� .J n U °� B'I..-- --`�"� q- 6 N 1' • 30' -- ISO.o7- South lint of lot 6 of the Aud. Plat - LEWIS AVENUE 0 E Stree• right M +do —0- 1 .60 APPLICATION OF ORDINANCE: Any plat, hereafter made, for each subdi- vision or each part thereof lying within the jurisdiction of this Ordinance, shall be prepared, presented for approval, and recorded as herein prescribed. The regulations contained herein shall apply to the subdivision of a lot, tract or parcel of land into three or more lots, tracts or other division of land for the purpose of sale or building development, whether immediate or future, in- cluding the re- subdivision or replotting of land or lots. Division of land in tracts larger than five (5) acres in area and 300 feet in width shall be exempt from the requirements of this Ordinance. 7 70 CONVEYANCE OF LAND: No conveyance of land in which the land conveyed is described by metes and bounds, or by reference to a plat made after adoption of these platting regulations without approval by Council resolution, shall be made or recorded if the parcel described in the conveyance is ess t on five (5) acres in area and 300 feet in width unless such parcel is a separate parcel of record at the time of adoption of this ordinance or unless an agreement to con- vey such smaller parcel was entered into prior to such time and the instrument showing the agreement to convey is recorded in the office of the Register of Deeds within one year hereafter. 1.80 RIGHT OF BUILDING PERMIT REFUSAL: The City Engineer and /or Building Inspector shall refuse building permits and utility services to any parcel of property conveyed by metes and bounds description in violation of this ordi- nance. 1.90 PUBLIC STREET GRANTS: No grant of a public street to the City by deed shall be filed without the approval of the Council by a resolution to that effect. 2.00 DEFINITIONS: As used in these regulations, certain terms and conditions are here - wit defined as follows: 2.01 COMMISSION: The Advisory Planning Commission of the City of Hutchinson, innesota. 2.02 MAP: A drawing showing one or more parcels of land. 2.03 PLAT: A map showing a plan for the subdivision of land which is submitted for approval and is intended in final form for recording. 2.04 STREET: A way set aside for vehicular traffic, regardless of size or designa- tion, but excluding private driveways serving only one parcel of land. 2.041 ARTERIAL STREETS AND HIGHWAYS: are those designed or utilized pri- marily for high vehiculcr speeds end /or for hecvy volumes of traffic. • 2.042 COLLECTOR STREETS AND HIGHWAYS: are those designed or utilized to carry intermediate volumes of traffic from minor streets to arterial streets. 2 • APRIL 229 1985 TO THE HUTCHINSON CITY COUNCIL AND MAYOR: We the property owners near 1117 Lewis Ave. to reject any request to divide this parcel neighborhood. We feel placing 2 homes on this.city lot is and aesthetics of a well developed area of r Oe�/J requests the City Council of land in a R -1 zoned detrimental to the area Hutchinson. --ia-)-� . ti �. J j %I deke carrot Ber iates,inc. eleCIS engineers land surveyors V • 1011 first street south post office box 130 hopkins, minnesota 55343 612- 935 -6901 April 16, 1985 r J Mr. Marlow Priebe, P.E. City EngineerC City of Hutchinson 37 Washington Avenue West Hutchinson, MN 55350 RE: REPAIR GROUND STORAGE RESERVOIR �. RCM FILE #841805 Dear Mr. Priebe: 0-' PJ I1\ We propose to render professional engineering services in connection with repair to the existing ground storage reservoir, hereinafter called the "Project ". RCM's services will consist of preparing the final design Drawings and Contract Documents, providing assistance during bidding, and providing limited construction phase services, all as set forth in the attached yrL General Provisions. RCM will also provide certain additional �1�4. services that you may request. %�_, & . 1. �, I The City will pay RCM for services a fee equal to 10.5 % of the construction cost of the project. Since a portion of the preliminary engineering services was completed under the August 14, 1984 report, RCM will credit the City with 25% of the fee previously paid by the City to RCM for the investigation and preparation of this report (total credit of $1,985.22). Additional resident inspection service during thew' high pressure cleaning and epoxy grouting phase and during!y;C ,ff concrete placement will be available upon request and invoiced- --7 on the basis of RCM's payroll cost times a factor of 2.4. e ,.,,;will bill you monthly for services and reimbursable expenses. r, RCM Invoice No.'s 46453 and 48541 in the total amount of kX $10,829.83 hpply to the work under this agreement. r, This proposal and the attached General Provisions consisting of seven pages, represent the entire understanding between the City of Hutchinson and RCM in respect to the Project and it may only be modified in writing signed by both of us. If it satisfactorily sets forth your understanding of the arrangement Mr. Marlow Priebe April 16, 1985 . Page 2 between us, we would appreciate your signing both copies of this letter in the space provided. Please keep one copy for your files and return the other copy to us. Very truly yours, RIEKE CARROLL MULLER ASSOCIATES, INC. Robert skopf, 1 /1 Y/ , n Chafles S. Barger, P.E., Ppeject Manager CSB:sma Accepted this day of , 1985. CITY OF HUTCHINSON • By: 0 RCM 541805 • GENERAL PROVISIONS Attached to and made a part of LETTER AGREEMENT dated City of Hutchinson, Minnesota (OWNER) and Rieke Carroll (ENGINEER) in respect of the project (Project) described therein. SECTION 1- -BASIC SERVICES OF ENGINEER I.I. General. April 16, 1985, between Muller .Associates, Inc. I.I.I. ENGINEER shall perform professional services as hereinafter stated which include customary civil, structural, mechanical and electrical engineering services and customary architectural services incidental thereto. 1.2. Study and Report Phase. Investigation of the problem and recommendations were included in report submitted August 14, 1984. 1.3. Preliminary Design Phase. Portions of this phase were included in above- mentioned report. 0 1.4. Final Design Phase. After written authorization to proceed with the Final Design Phase, ENGINEER shall: 1.4.1. On the basis of the selected alternate B, in the above study, prepare for incorporation in the Contract Documents final drawings to show the character and extent of the Project (hereinafter called "Drawings ") and Specifications. 1.4.2. Furnish to OWNER such documents and design data as may be required for, and assist in the preparation of, the required documents so that OWNER may apply for approvals of such governmental authorities as have jurisdiction over design criteria applicable to the Project, and assist in obtaining such approvals by participating in submissions to and negotiations with appropriate authorities. 1.4.3. Advise OWNER of any adjustments to the latest opinion of probable Project Cost caused by changes in extent or design requirements of the Project or Construction Costs and furnish a revised opinion of probable Project Cost based on the Drawings and Specifications. 1.4.4. Prepare for review and approval by OWNER, his legal counsel and other advisors contract agreement forms, general conditions and supplementary conditions, and (where appropriate) bid forms, invitations to bid and instructions to bidders, and assist in the preparation of other related documents. •1.4.5. Furnish copies of the above documents and present and review them in person with OWNER. Page 1 of 7 i RCM 841805 1.5. Bidding or Negotiating Phase. 0 After authorization to proceed with the Bidding or Negotiating Phase, ENGINEER shall: 1.5.1. Assist OWNER in obtaining bids or negotiating proposals for a single prime contract for construction, materials, equipment and services. 1.5.2. Consult with and advise OWNER as to the acceptability of subcontractors and other persons and organizations proposed by the prime contractor (hereinafter called "Contractor ") for those portions of the work as to which such acceptability is required by the bidding documents. 1.5.3. Consult with and advise OWNER as to the acceptability of substitute materials and equipment proposed by Contractor when substitution prior to the award of contracts is allowed by the bidding documents. 1.5.4. Assist OWNER in evaluating bids or proposals and in assembling and awarding contracts. 1.6. Construction Phase. During the Construction Phase ENGINEER shall: 1.6.1. Consult with and advise OWNER and act as his representative as provided in Articles I through 17, inclusive, of the Standard General Conditions of the Construction Contract No. 1910 -8, (1983 edition). The extent and limitations of the duties, responsibi- lities and authority of ENGINEER as assigned in said Standard General Conditions shall not be modified, and except as ENGINEER may otherwise agree in writing. All of OWNER's instructions to Contractor will be issued through ENGINEER who will have authority to act on behalf of OWNER to the extent provided in said Standard General Conditions except as otherwise provided in writing. 1.6.2. Make visits to the site at intervals appropriate to the various stages of construc- tion to observe the progress and quality of the executed work of Contractor and to determine in general if such work is proceeding in accordance with the Contract Documents. ENGINEER shall not be required to make exhaustive or continuous on -site inspections to check the quality or quantity of such work. ENGINEER shall not be responsible for the means, methods, techniques, sequences or procedures of construction selected by Contractor or the safety precautions and programs incident to the work of the Contractor. ENGINEER's efforts will be directed toward providing a greater degree of confidence for OWNER that the completed work of Contractor will conform to the Contract Documents, but ENGINEER shall not be responsible for the failure of Contractor to perform the work in accordance with the Contract Documents. During such visits and on the basis of his on -site observations ENGINEER shall keep OWNER informed of the progress of the work, shall endeavor to guard OWNER against defects and deficiencies in such work and may disapprove or reject work failing to conform to the Contract Documents. 1.6.3. Review and approve (or take other appropriate action in respect of) Shop Drawings (as that term is defined in the aforesaid Standard General Conditions) and samples, the results of tests and inspections and other data which each Contractor is required to submit, but only for conformance with the design concept of the Project and compliance Page 2 of 7 RCM 841805 • with the information given in the Contract Documents (but such review and approval or other action shall not extend to means, methods, sequences, techniques or procedures of construction or to safety precautions and programs incident thereto); determine the acceptability of substitute materials and equipment proposed by Contractor; and receive and review (for general content as required by the Specifications) maintenance and operating instructions, schedules, guarantees, bonds and certificates of inspection which are to be assembled by Contractor in accordance with the Contract Documents. 1.6.4. Issue all instructions of OWNER to Contractor; issue necessary interpretations and clarifications of the Contract Documents and in connection therewith prepare change orders as required; have authority, as OWNER's representative, to require special inspec- tion or testing of the work; act as initial interpreter of the requirements of the Contract Documents and judge of the acceptability of the work thereunder and make decisions on all claims of OWNER and Contractor relating to the acceptability of the work or the interpretation of the requirements of the Contract Documents pertaining to the execution and progress of the work; but ENGINEER shall not be liable for the results of any such interpretations or decisions rendered by him in good faith. 1.6.5. Based on ENGINEER's on -site observations as an experienced and qualified design professional and on review of applications for payment and the accompanying data and schedules, determine the amounts owing to Contractor and recommend in writing payments to Contractor in such amounts; such recommendations of payment will consti- tute a representation to OWNER, based on such observations and review, that the work has progressed to the point indicated, that, to the best of ENGINEER's knowledge, infor- mation and belief, the quality of such work is in accordance with the Contract Documents (subject to an evaluation of such work as a functioning Project upon Substantial Completion, to the results of any subsequent tests called for in the Contract Documents, and to any qualifications stated in his recommendation), and that payment of the amount recommended is due Contractor; but by recommending any payment ENGINEER will not thereby be deemed to have represented that continuous or exhaustive examinations have been made by ENGINEER to check the quality or quantity of the work or to review the means, methods, sequences, techniques or procedures of construction or safety precau- tions or programs incident thereto or that ENGINEER has made an examination to ascertain how or for what purposes any Contractor has used the moneys paid on account of the Contract Price, or that title to any of the work, materials or equipment has passed to OWNER free and clear of any lien, claims, security interests or encumbrances, or that Contractor have completed their work exactly in accordance with the Contract Documents. 1.6.6. Conduct an inspection to determine if the Project is substantially complete and a final inspection to determine if the work has been completed in accordance with the Contract Documents and if each Contractor has fulfilled all of his obligations thereunder so that ENGINEER may recommend, in writing, final payment to each Contractor and may give written notice to OWNER and the Contractor that the work is acceptable (subject to any conditions therein expressed), but any such recommendation and notice shall be subject to the limitations expressed in paragraph 1.6.5. 1.6.7. ENGINEER shall not be responsible for the acts or omissions of any Contractor, or subcontractor, or any of the Contractor's or subcontractor's agents or employees or any other persons (except ENGINEER's own employees and agents) at the site or otherwise performing any of the Contractors' work; however, nothing contained in paragraphs 1.6.1 thru 1.6.7, inclusive, shall be construed to release ENGINEER from liability for failure to properly perform duties undertaken by him in the Contract Documents. Page 3 of 7 RCM 841805 SECTION 2-- ADDITIONAL SERVICES OF ENGINEER 2.1. Normal and customary engineering services do not include services in respect of the following categories of work which are usually referred to as Additional Services. If OWNER wishes ENGINEER to perform any Additional Services, he shall so instruct ENGINEER in writing, and ENGINEER will be paid therefor as provided in the Letter Agreement. Additional Services include: - Furnishing the services of special consultants. - Services in connection with change orders to reflect changes requested by OWNER, evaluating substitutions proposed by Contractor after award, and services resulting from material, equipment or energy shortages. - Services during out -of -town travel other than visits to the site. - Preparing for OWNER, on request, a set of reproducible record prints based on data furnished by Contractor. Additional or extended services during construction made necessary by (1) work damaged by fire or other cause during construction, (2) a significant amount of defective or neglected work of Contractor, (3) prolongation of contract time, (4) Contractor's overtime work, and (5) Contractor's defaults. Services after completion of the Construction Phase. Preparing to serve or serving as a consultant or witness in any legal or administra- tive proceeding or public hearing. Providing services normally furnished by OWNER. 2.2. ENGINEER shall provide on site resident inspection during the high pressure cleaning, epoxy grouting phase and concrete placement which will be paid for by OWNER on the basis of payroll cost times a factor of 2.4 plus reimbursable expenses. SECTION 3-- OWNER'S RESPONSIBILITIES 3.1. OWNER shall provide ENGINEER with all criteria and full information as to OWNER's requirements for the Project, designate a person to act with authority on OWNER's behalf in respect of all aspects of the Project; examine and respond promptly to ENGINEER's submissions; and give prompt written notice to ENGINEER whenever he observes or otherwise becomes aware of any defect in the work. 3.2. OWNER shall also do the following and pay all costs incident thereto: Provide such legal, accounting, independent cost estimating and insurance counseling services as may be required for the Project, any auditing service required in respect of Contractor's applications for payment, and any inspection services to determine if Contractor are performing the work legally. 9 Page 4 of 7 RCM 841805 - Provide field control surveys and fix reference points and base lines. Furnish approvals and permits from all governmental authorities having jurisdiction over the Project. 3.3. OWNER shall pay all costs incident to obtaining bids or proposals from Contractor. SECTION 4-- MEANING OF TERMS 4.1. As used herein the term "this Agreement" refers to the Letter Agreement to which these General Provisions are attached and to these General Provisions as if they were part of one and the same document. 4.2. The construction cost of the entire Project (herein referred to as "Construction Cost ") means the total cost of the entire Project to OWNER, but it will not include ENGINEER's compensation and expenses, the cost of land, rights -of -way, or compensation for or damages to, properties unless this Agreement so specifies, nor will it include OWNER's legal, accounting, insurance counseling or auditing services, or interest and financing charges incurred in connection with the Project. When Construction Cost is used as a basis for payment it will be based on one of the following sources with precedence in the order listed for work designed or specified by ENGINEER: 4.2.1. For completed construction work the total cost of all work performed as designed or specified by ENGINEER. 4.2.2. For work designed or specified but not constructed, the lowest bona fide bid received from a qualified bidder for such work; or, if the work is not bid, the lowest bona fide negotiated proposal for such work. 4.2.3. For work designed or specified but not constructed upon which no such bid or proposal is received, the most recent estimate of Construction Cost, or, if none is available, ENGINEER's most recent opinion of probable Construction Cost. Labor furnished by OWNER for the Project will be included in the Construction Cost at current market rates including a reasonable allowance for overhead and profit. Materials and equipment furnished by OWNER will be included at current market prices. No deduction is to be made from ENGINEER's compensation on account of any penalty, liquidated damages, or other amounts withheld from payments to Contractor. 4.3 Direct Labor Costs - not applicable. 4.4. The Payroll Costs used as a basis for payment mean salaries and wages (basic and incentive) paid to all personnel engaged directly on the Project, including, but not limited to, engineers, architects, surveyors, designers, draftsmen, specification writers, estimators, other technical personnel, stenographers, typists and clerks; plus the cost of customary and statutory benefits including, but not limited to, social security contribu- tions, unemployment, excise and payroll taxes, workers' compensation, health and retirement benefits, sick leave, vacation and holiday pay applicable thereto. • The amount of customary and statutory benefits of all personnel will be considered equal to 30% of salaries and wages. Page 5 of 7 RCM 841305 4.5. Reimbursable Expenses mean the actual expenses incurred directly or indirectly in IS connection with the Project for: transportation and subsistence incidental thereto; obtaining bids or proposals from Contractor; subsistence and transportation of Resident Project Representative; reproduction of Drawings, Specifications, and similar Project- _ related items in addition to those required under Section 1; expenses of photographic production techniques; and, if authorized in advance by OWNER, overtime work requiring higher than regular rates. SECTION 5 -- MISCELLANEOUS 5.1. Reuse of Documents. All documents including Drawings and Specifications prepared by ENGINEER pursuant to this Agreement are instruments of service in respect of the Project. They are not intended or represented to be suitable for reuse by OWNER or others on extensions of the Project or on any other project. Any reuse without written verification or adaptation by ENGINEER for the specific purpose intended will be at OWNER's sole risk and without liability or legal exposure to ENGINEER; and OWNER shall indemnify and hold harmless ENGINEER from all claims, damages, losses and expenses including attorneys' fees arising out of or resulting therefrom. Any such verification or adaptation will entitle ENGINEER to further compensation at rates to be agreed upon by OWNER and ENGINEER. 5.2. Opinions of Cost. Since ENGINEER has no control over the cost of labor, materials, equipment or services • furnished by others, or over the Contractor's methods of determining prices, or over competitive bidding or market conditions, his opinions of probable Project Cost and Construction Cost provided for herein are to be made on the basis of his experience and qualifications and represent his best judgment as an experienced and qualified professional engineer, familiar with the construction industry; but ENGINEER cannot and does not guarantee that proposals, bids or actual Project or Construction Cost will not vary from opinions of probable cost prepared by him. If prior to the Bidding or Negotiating Phase OWNER wishes greater assurance as to Project or Construction Cost he shall employ an independent cost estimator as provided in paragraph 3.2. Engineering services to modify the Contract Documents to bring the Construction Cost within any limitation established by OWNER will be considered Additional Services and paid for as such by OWNER. 5.3. Late Payment. If OWNER fails to make any payment due ENGINEER for services and expenses within 30 days, the amounts due ENGINEER shall include a charge at the rate of IY2% per month from the invoice date, and in addition, the ENGINEER may, after given seven days' written notice to OWNER, suspend services under this Agreement until he has been paid in full all amounts due him for services and expenses. 5.4. Termination. The obligation to provide further services under this Agreement may be terminated by either party upon seven days' written notice in the event of substantial failure by the other party to perform in accordance with the terms hereof through no fault of the terminating party. In the event of any termination, ENGINEER will be paid for all services rendered to the date of termination, all Reimbursable Expenses and termination expenses. Page 6 of 7 0 .icon 8418o5 5.5. Successors and Assigns. 5.5.1. OWNER and ENGINEER each binds himself and his partners, successors, executors, administrators, assigns and legal representatives to the other party to this Agreement and to the partners, successors, executors, administrators, assigns and legal representa- tives of such other party, in respect to all covenants, agreements and obligations of this Agreement. 5.5.2. Neither OWNER nor ENGINEER shall assign, sublet or transfer any rights under or interest in (including, but without limitation, moneys that may become due or moneys that are due) this Agreement without the written consent of the other, except as stated in paragraph 5.5.1 and except to the extent that the effect of this limitation may be restricted by law. Unless specifically stated to the contrary in any written consent to an assignment, no assignment will release or discharge the assignor from any duty or responsibility under this Agreement. Nothing contained in this paragraph shall prevent ENGINEER from employing such independent consultants, associates and subcontractors as he may deem appropriate to assist him in the performance of services hereunder. 5.5.3. Nothing herein shall be construed to give any rights or benefits hereunder to anyone other than OWNER and ENGINEER. END OF GENERAL PROVISIONS Page 7 of 7 (612) 587.5151 Hu�cH' CITY OF HUTCHINSON )7 A,ASH/NGTON AVENUE WEST ,tit/NN 55350 M E M 0 DATE: April 18, 1985 TO: Mayor and City Council FROM: Director of Engineering --RE: Project 85 -01 -39 Attached is the Engineer's Report for the above- referenced project. To proceed on this project, it will be necessary to adopt the attached resolutions: • 1. Resolution Declaring Adequacy of Petition 2. Resolution Receiving Report 3. Resolution Ordering Preparation of Plans and Specifications MVP /pv attachments L Marlow V. Priebe Director of Engineering RESOLUTION DECLARING ADEQUACY OF PETITION RESOLUTION NO. 8027 0 BE IT RESOLVED BY THE CITY COUNCIL OF HUCTHINSON, MINNESOTA: 1. A certain petition requesting the improvement of T.H. 7 hest Service Road from Les Kouba Parkway to 1040 Feet East by the construction of watermain, storm sewer, grading, gravel base and curb and gutter and appurtenances, filed with the Council on April 91 1985, is hereby declared to be signed by a hundred percentage of the owners of property affected thereby. This declaration is made in conformity to Minnesota Statutes, Section 429.035. Adopted by the City Council this 23rd day of April, 1985. City Clerk Mayor Q 0 16 • ENGINEER'S REPORT CITY OF HUTCHINSON DATE: April 180 1985 TO: Mayor and City Council FROM: Director of Engineering SUBJECT: Bethke's Motel Site & Service Road Improvement Project Gentlemen: I have studied the following areas and find that the proposed project is feasible and recommend it be constructed. PROJECT NO. 85 -01 -39 - Construction of watermain, storm sewer, grading, gravel base, curb and gutter and appurtenances on T.A. 7 Test Service Road from Les Kouba Parkway to 1040 Feet East Construction Cost Engineering Fiscal and Miscellaneous Land Acquisition Capitalized Interest TOTAL------------ - - - - -- Assessable Cost Deferred Assessable Cost City Cost TOTAL-------- - - - - -- $ 1189440.00 9,475.00 9,475.00 0.00 9,475.00 $ 1462865.00 $ 93,605.00 0.00 53,260.00 ----------- 146,865.00 Respectfully submitted, Marlow V. Priebe Director of Engineering RESOLUTION RECEIVING REPORT PROJECT NO. 85 -01 -39 RESOLUTION NO. 8028 WHEREAS, pursuant to resolution of the Council adopted April 9, 1985, a report has been prepared by Marlow V. Priebe with reference to the improvement of T.H. 7 West Service Road from Les Kouba Parkway to 1040 Feet East by the construction of watermain, storm sewer, grading, gravel base, curb and gutter and appurtenances, and this report was received by the council on April 23, 1985. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF HUTCHINSON, MINNESOTA: 1. The council will consider the improvement of such street in accordance with the report and the assessment of benefited property for all or a portion of the cost of the improvement pursuant to Minnesota Statutes Chapter 429 at an estimated total cost of the improvement of $146,865.00. Clerk Adopted by the council this 23rd day of April, 1985. Mayor 0 is E RESOLUTION ORDERING IMPROVEMENT AND PREPARATION OF PLANS AND SPECIFICATIONS PROJECT N0. 85 -01 -39 Resolution No. 8029 WHEREAS, a certain petition requesting the improvement of T.H. 7 West Service Road from Les Kouba Parkway to 1040 Feet East by the construction of watermain, storm sewer, grading, gravel base, curb and gutter and appurtenances, was duly presented to the council on the 9th day of April, 1985; and WHEREAS, pursuant to resolution of the council adopted April 9, 19859 a report has been prepared by Marlow V. Priebe, Director of Engineering, with reference to the improvement, and this report was received by the council on April 23rd, 1985; NOW THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF HUTCHINSON, MINNESOTA: 1. The council finds and determines that said petition was signed by all owners of real property affected by the improvement of the street named as the location of the improvement. 2. Such improvement is hereby ordered as proposed in the council resolution adopted April 9, 1985. 3. Marlow V. Priebe is hereby designated as the engineer for this improvement. He shall prepare plans and specifications for the making of such improvement. Adopted by the council this 23rd day of April, 1985. Mayor Clerk 0 0 ar�0612) 587 -5151 CITY OF HUTCHIiiOSCIV 37 WASHINGTON AVENUE WEST HUTCHINSON, MINN. 55350 M E M O R A N D U M DATE: April 23, 1985 TO: Mayor and City Council ------------------------------ FROM: Marilyn Swanson, Administrative Secretary SUBJECT: Agenda Item 9 -(r) — _ — — _ — Agenda item 9 -(r) has been withdrawn at this time. Gary Miller and /or Tom Dolder will be submitting a request at the next Council meeting. 9 -� L REGULAR COUNCIL MEETING APRIL 23, 1985 �+IATER $ SEWER FUND *State Treasurer social security $397.83 Gene Iverson equipment rental 5.00 City of Hutchinson reimbursement 19,966.00 General Repair Service repairs 817.94 Lakeland Eng. Equipment Co. parts 166.31 KAMAN Bearing parts 248.20 Blue Cross Blue Shield May med. ins. 1107.37 Electric Motor Co. motor repairs 116.44 Floor Care Supply cleaning supplies 37.50 Logis computer charges 465.00 LTP Enterprises repairs 169.64 Mn. Blueprint graph paper 12.28 Mn. Valley Testing Lab testing 114.00 Power Process parts 235.74 State Treasurer pera 239.82 Zep Mfg. Co. chemicals 47.70 Water Products Co. meters $ parts 5240.46 Miller Davis Co. supplies 92.28 $29,479.50 CENTRAL GARAGE FUND rState Treasurer social security $ 46.10 *League of Mn. Cities Housing Bureau room reservation 64.00 Larry Karg rental $ supplies 90.00 AMI Products Inc. supplies 195.00 Able House $ Rubber Co. supplies 17.40 Cleveland Cotton Products shop supplies 83.36 Security State Bank parts 209.09 Ag Systems Inc. part 17.10 Blue Cross Blue Shield May med. ins. 174.60 Farmers Elevator Assn. supplies 123.00 HAVTI repairs 162.42 Jerabek Machine Shop parts 11.52 L $ P Supply parts 1.20 MTI Dist. Co. parts 33.04 MacQueen Equipment parts 97.24 Road Machinery parts 144.11 Sorensen Farm Supply parts 18.90 State Treasurer pera 27.79 Town $ Country Tire repairs 69.77 Ziegler Inc. parts 83.32 $ 1,668.96 16 /( - Q I, -2- *GENERAL FUND *Mn. STate Treasurer boat registration fees $113.00 *League of Mn. Cities housing reservations 364.00 *Leagues of Mn. Cities housing reservation 54.00 *Mn. State Treasurer boat registration fees 145.00 *State Treasurer social security 2862.97 *Old Log Theatre tickets 230.00 *National Economic Development Center reservation fee 50.00 *Olympia Resort lodging reservation 64.00 *League of Mn. Cities room reservation 64.00 Joe Sic floor conditioning supplies 259.00 Percy Hansen safety boots 30.00 Harland Emans custodian fee 120.00 Richard Wanzek referee $ refund 50.00 Darlene Forbroyd room rental deposit 21.00 Cal Rice safety glasses 80.00 Scott Hogrefe safety boots 24.97 Mark Schnobrich safety boots 30.00 Paul Herrly safety boots 30.00 Randy Stille safety boots 30.00 Doug Schuette referees refund 56.25 Rick Schmidt referees refund 12.50 Gene Iverson rental equipment 65.00 Systems INc. supplies 179.00 16ccuease eacon Products supplies 200.00 B & F Investment library rental 1200.00 Crow River Mechanical parts 46.20 Fire Safety Products Inc. repairs 235.65 Hewlett Packard HP update subscription 24.00 McLeod Co. Sheriff 911 stickers 6.00 MnPlayground Co. springs 126.43 Mn.Crime Prevention Assn. 1985 dues 15.00 National Guard Armory rental 160.00 Prof.Civil Eng.Book Club 2 books 58.98 Pioneerland Library System 2nd quarter payment 12,145.00 Stewart Sandwiches arena supplies 50.65 Albinson supplies 43.96 Am. Welding Supplies welding gas 23.96 Big Bear supplies 94.91 Brinkman Studio flashbars 9.90 Blue Cross Blue Shield May med. ins. 11,592.79 C.R. Cable TV basic cable 6.45 Chapin Pub.Co. publications 187.68 Central Mn. Communications repairs 182.00 Copy Equipment Inc. supplies 75.98 Co. Treasurer dl fees for county 136.00 Charles Bailley Co. audit fees 11,525.00 Dept. of Safety cjdn connect charges 150.00 Wstal & Oleson Oil Co. solvent 20.50 Ericksons supplies 4.52 1st State Bank of Mn. parts 2.80 Floor Care Supply Co. cleaning supplies 180.05 Fitzloff Hardware Mar.arena supplies 62.68 Guardian Pest Control spray 36.25 -3- HAVTI repairs $ 62.50 enrys Candy Co. arena supplies 916.03 NWHome Bakery cake & rolls 6.65 Hutch Community Hospital laundry 14.40 Hutch Iron & Metal iron 36.16 Hutch Utilities service call $ lamps $ cells 725.24 Orlin Henke intown mileage -april 30.00 Ind.School Dist. 423 supervisor,lifeguard,etc. 274.60 Ideal Shoe Shop sewing repairs 7.50 Jahnkes Red Owl supplies 37.52 Johnson Super Value supplies 65.43 JOes Sport Shop trophies 50.00 K Mart supplies 5.91 Schwinn Bike repairs 17.70 L $ P Supply parts 20.95 Law Enforcement Equipment supplies 15.25 Logis computer charges 3490.91 MTI Dist. Co. parts 4.18 Miller Davis Co. supplies 184.57 McGarvey Coffee coffee 142.80 Northern STate Supply supplies 32.20 Pitney Bowes maintenance agreement 112.00 Gary Plotz mileage $ expenses 84.38 Thomas Patco. Co. equipment 602.75 Pamida Inc. supplies 9.79 Rannow Electric service calls 25.35 �orensen Farm Supply parts 29.00 STate Treasurer pera 3684.90 James Schaefer ' Apr. compensation 962.50 Traf 0 Teria System 1500 tickets 100.82 Town $ Country Tire parts 4.00 United Bldg. Centers supplies 112.00 University of Mn. registration fees 50.00 West Pub. Co. 1985 session laws 52.50 Wesley Pharmacy supplies 4.16 $55,512.68 BOND FUNDS Pool & Recreation Fund Chapin Publication Co. publications $ 92.48 1981 Parking Bonds 1st StateBank of Brownton contract payment of Bennie Carlson 669.30 0 MUNICIPAL LIQUOR STORE Griggs Cooper $ Co. BEd Phillips & Sons ality Wine $ Spirits Griggs Cooper $ Co. Ed Phillips & Cons Quality Wine & Spirits Twin City Wine Co. State Treasurer State Treasurer City of Hutchinson Commissioner of Revenue E wine 4 liquor $2305.25 wine $ liquor 3623.17 wine & liquor 1849.99 wine $ liquor 1785.57 wine & liquor 1039.57 wine $ ligour 79.26 wine $ liquor 2332.21 social security 270.06 pera 162.80 payroll 4240.57 1 sale taxes 7041.09 $24,729.54 ALLEN WATER do WASTEWATER ENGINEERING INC. - 605 Hillside Drive 131 15 Fairfield, Iowa 52556 p > >? (515) 472 -5 � F- April 9, 1985 e yam. 6Z8i LZ32�J Mr. Gary Plotz City Administrator City Hall 37 Washington Ave. Hutchinson, MN 55350 Dear Mr. Plotz, J� r VL 'k] F_ RE: FOR YOUR INFORMATION Wastewater Treatment System I have been discussing Hutchinson's proposed wastewater system with Mr. Priebe over the last five or six months. Enclosed is a copy of my letter to Mr. Priebe of November 1, 1984. Mr. Priebe has informed me that the City recently retained Consulting Engineers Diversified to do detailed design work on • your wastewater plant, and that the capitol cost estimate for your new plant was approximately $11,000,000. As you will note from my letter of November 1, 1984, my rough cost estimate for a plant to meet your effluent limits could likely be constructed for less than $5,000,000. This is admittedly a rough figure but it does indicate the potential for substantial cost savings. With the anticipated $11,000,000 cost, I assume that a Value Engineering Review will be required by EPA. The Value Engineering Review process normally doesn't take place until late in the design phase. The Value Engineering process assumes that the basic treatment process is fixed and, therefore, plans and specifications are suU4ect to refinements in detail only. ./ A potential that-the City may, be interested in at this time is a ' se'"�cond opinion" as to the basic...treatment process �T1tt` overall treatment_ approach. The "second opinion" process done early in the design phase has the potential of significantly reducing costs without the consequences of redesign costs. I believe this "second opinion" _-could :be coa5idered_ a p gt, of the Value Eng- ineering process under the EPA grant program. My experience to da£c, and that of others who have chose-n"'- his "second opinion" i route, is that substantially more cost savings can be realized by modifying the basic treatment concept than by refining design details near the end of the design process. Mr. Gary Plotz 2 I would be pleased to assist the City providing a second opinion relative to the approach. I would expect to coordinate my your Design Engineer, and the State of Min April 9, 1985 of Hutchinson by basic treatment efforts with you, nesota. If such an approach is thought_ to be worthwhile, I would be pleased to submit a detailed proposal. I will call you within the next ten days to see if there is any interest in this "second opinion" approach. For your information, Iowa City is presently pursuing this basic approach. Their preliminary results to date indicated cost savings in excess of $15,000,000 on the originally proposed $49,000,000 proposal. Sincere 4 homas F. Allen, P.E., President Allen Water & Wastewater Eng. TFA /mw Enclosure cc: Marlow Priebe, Director of Eng. ' • =r ALLEN WATER do WASTEWATER ENGINEERING INC. 605 Hillside Drive Fairfield, Iowa 52556 (515) 472 -5009 November 1, 1984 Mr. Marlo Priebee City Engineer City Hall Hutchinson, MN 55350 Dear Mr. Priebee, It was a real pleasure to talk with you this past Monday regarding the City's planning efforts for a new wastewater treatment system. As I remember from our conversation, the City will soon be receiving an updated NPDES permit to establish ultimate design treatability requirements. These limits are still anticipated to require the substantial removal of amonia nitrogen. 'For your reference and comparison, my recent design for a population equivalent of 15,000 to remove BOD and suspended solids to a level of 20 ppm and to remove amonia nitrogen to a level of 5, was bid at 2.7 million dollars. This system did incorporate some existing facilities. My estimation of C • the totally new treatment system to handle the same amount of water and degree of treatment would cost approximately 4 million dollars. The above design included a storm water retention basin system to accomodate peak hourly wet weather flows of up to 7.5 million gallons a day flow rate. From what you described as the needs of Hutchinson for a new wastewater treatment system, I would be anticipating the cost in the neighborhood of 3 to 5 million dollars depending upon geological restraints and the degree of treatment. Enclosed is my calling card and company brochure for your review. By specializing in water and wastewater treatment, I feel I can provide speciality concept engineering services for both municipalities and industries to insure the most cost effective solutions. Please give me a call if I can be of any assistance. I will plan on calling you in two or three weeks to see if revised discharge limits have been established and if a trip to Hutchinson to discuss potential solutions would be of assistance to you. Sincerely, Thomas F. Allen, P.E., President Allen iJater & Agastewater Eng. Enclosures A POTENTIAL MUNICIPAL WATER TREATMENT SYSTEMS ALLEN Iron Oxidation & Filtration 1 WATER Lime Softening Lime & Soda Ash Softening MUNICIPAL Reverse Osmosis AND Catalytic Precipitation AND Ion Exchange Carbon Adsorption WASTEWATER Straight Filtration Some Combination of Above CLIENTS Distribution Systems ENGINEERING POTENTIAL MUNICIPAL WATER INC. SUPPLY & TREATMENT Thomas F. Allen, P.E., President COMPONENTS 605 Hillside Drive Wells SERVING Empoundments Primary Clarifiers MUNICIPAL Aeration Facilities Iron Removal Filters AND Softening Systems Final Clarifiers INDUSTRIAL Filtration Facilities Disinfection Facilities CLIENTS Distribution Systems Storage Facilities Sludge Dewatering Facilities Thomas F. Allen, P.E., President 605 Hillside Drive " Fairfield, Iowa 52556 (515) 472 -5009 1• • SERVICES OFFERED regarding MUNICIPAL WATER & WASTEWATER SYSTEMS Alternative Treatment Evaluations Feasability Studies Plans & Specifications Shop Drawing Review Inspection O & M Manuals Start-up Assistance Operator Training Trouble- shooting Energy Conservation Analysis Waste Solids Handling Evaluations Rate Studies Grant Application Assistance Consultations Plan of Action Development Facility Planning Contract Operations Allen Water & Wastewater Engineering offers Professional Engin- eering Consulting Services to munici- palities in the specialized areas of water treatment and wastewater treatment. Such services range from initial feas- ability studies, to design, to contract operations. Municipalities, or their utility boards, have the responsibility of providing clean safe drinking water, and of provid- ing adequate wastewater treatment utility services to their customers. Allen Water & Wastewater Engineering appreciates the difficulty of fulfilling these responsibilities with limited bud- gets and decreasing sources of available financial assistance. "Plans of Action" are now being re- quired of municipalities to meet current standards of wastewater treatment. When completed, these plans will commit cities to a course of action that will have long lasting consequences. It is very important that every effort be made to minimize utility service charges while meeting State & EPA require- ments. Such efforts often require inno- vative solutions encompassing both engineering design concepts and financial planning. If your city needs to develop a Plan of Action, needs assistance to upgrade your sewerage system or water system, Allen Water & Wastewater Engineering offers specialty Consulting services in these areas and would appreciate your inquiry. POTENTIAL MUNICIPAL WASTEWATER TREATMENT SYSTEMS Oxidation Lagoons Aerated Lagoons Facultative Lagoons Trickling Filters Extended Aeration Activated Sludge Packed Towers RBC's Oxidation Ditch Sequencing Batch Reactors Irrigation POTENTIAL MUNICIPAL WASTEWATER TREATMENT SYSTEM COMPONENTS Lagoons Equalization Basins Screens Grit Chambers Primary Clarifiers Aeration Facilities Final Clarifiers Chlorination Facilities Dechlorination Facilities Sludge Stabalization Facilities Sludge Dewatering Facilities Sludge Disposal Systems Some Combination of the Above %NWESpT moo.* Minne;;ota Department of Transportation BOX 766 2503 TRANSPORTATION ROAD 5 WILLMAR, MINNESOTA 56201 OF TRP� April 16, 1985 Mr. Gary D. Plotz City Administrator 37 Washington Avenue West Hutchinson, Minnesota 55350 Re: Signal at T.H. 22(7) and School Road In Hutchinson, Minnesota Dear Mr. Plotz: �£ 17 1 j\ m B % -.r QQ '1EO£6Z LJ: (612)231 -5497 FOR YOUR INFORMATION Your correspondence of March 19, 1985, asked several questions from the City Council regarding traffic signals at the intersection of School Road and T.H. 22(7). Cost estimates for a temporary signal system were mis- stated in my • 2 -27 -85 letter. The letter should have said that the City should estimate to share equally in costs of $40,000 to $50,000 for constructing a temporary signal. I apologize for this error. We have difficulty estimating fees for a consultant to design a tem- porary signal. Engineering costs could be 20 to 25% of the signal system costs. A breakdown of the other signal costs include: -- 8 magnetic vehicle detectors @ $1000 S 8,000 -- 2 phase signal controller & cabinet 149000 -- 4 mast arm signal poles and lights @ $4000 16,000 There are other costs for cable, trenching, jacking, etc. The esti- mated City share in a temporary signal should be $20,000- $25,000. In addition, the City would be responsible for all design costs. A cost comparison between the signal installed at South Grade Road and T.H. 15, jointly by City /State efforts and a temporary signal at School Road and T.H. 22 is difficult for the following reasons: 1. We do not have labor - equipment costs the City paid towards the installation. 2. Materials furnished by the State for the signal were salvaged equipment and not charged out to the project. We do not have . salvaged equipment available to furnish for School Road. Equipment would have to be purchased new from suppliers. An Equal Opportunity Employer Page 2 3. The signal system for T.H. 15 was a fixed -time signal vs. the traffic actuated signal required for T.H. 22. The equipment required for a traffic actuated signal is more sophisticated and more costly than for a fixed time signal. 4. We recommend steel mast arm poles @ $4,000 at School Road as compared to 40' wood poles furnished by the City at South Grade Road. 5. There was no charge to the City for signal design on T.H. 15. A temporary signal provides some protection and has a tendency to lower the urgency for permanent improvements. A temporary signal interrupts trunk highway traffic to allow for freer movement of side street traffic. It will not eliminate all accidents at an intersec- tion. Since activating the temporary signal at South Grade Road - T.H. 15 on 8 -7 -84, our records show 9 accidents have been reported. Four were right -angle type and two were rear -ender type accidents. Both rear - enders involved personal injury as well as property damage. Installing a signal system without traffic actuation (no vehicle detectors) and without providing left -turn channelization could drastically increase the number of rear -ender type accidents at School Road and T.H. 22. While some protection could be provided for right - angle accidents, the potential for a serious accident would be present with every loaded semi approaching the intersection on a green light and about to lose it to a fixed -time temporary signal. T.H. 22 carries 4 times as many trucks as T.H. 15. Signalization and left -turn channelization has been proposed to Mn /DOT staff for programming in 1987 at an estimated cost of $600,000. The proposal, if approved, will require coordination between Mn /DOT, the City of Hutchinson, and the Federal Highway Administration (FHWA) for funding and the scope of the project. Funding, right -of -way, and coordination of the design (utilities, etc.) preclude an earlier letting date. The preliminary plan proposes left- and right -turn lanes at School Road and California Street. The temporary signal Hutchinson has shown However, the Council accidents occurring installation. There such as: system at South Grade Road and T.H. 15 in a reduction in right -angle type accidents. should not expect the elimination of all the at the School Road intersection with a similar are numerous differences in the intersections, • E Page 3 • 1. Speed Limit 2. Urban Development 3. Accident Types (1 -1 -81 to 8- 7 -84) ** 4. HCADT 5. Average Daily Traffic T.H. 15 and T.H. 22 (7) and South GradRoad School Road 40 MPH Shopping Centers 4 Rear - enders 11 Rt. Angle 7 Lt. Turn 250 Trucks /Daily 5850 Vehicles /Daily 50 MPH 50% 13 Rear - enders 8 Rt. Angle 4 Lt. Turn 955 Trucks /Daily* 9500 Vehicles /Daily * 75% of 5 -axle semi's are grain trucks. ** Signals turned on South Grade Road on 8 -7 -84. We suggest that the City Engineer coordinate a meeting between Mn /DOT, Hutchinson City Council, the Council Safety Committee, and others to provide input into the preliminary plans developed for the T.H. 22 (T.H. 7) project. Coordination between the City and Mn /DOT is essen- tial in developing plans for the project at the earliest possible date. We will look forward to a joint meeting with the City in May. Sincerely, K. A. Madole, P.E. District Engineer • MINNESOTA HOUSING FOR YOUR INFORMATION FINANCE AGENCY 5678 -9 April 5, 1985 e The Honorable James DeMeyer Mayor of Hutchinson City Hall 37 Washington Avenue West Hutchinson, MN 55350 RE: HERITAGE SQUARE Hutchinson MHFA #85 -003 Dear Mayor DeMeyer: We are pleased to inform you that the Minnesota Housing Finance Agency (Agency) has completed the Feasibility underwriting and technical review for the referen- ced housing development proposal. On March 28, 1985, the Agency Board determined that this proposed development appears feasible for mortgage financing under the •Agency's Market Rate Graduated Payment Mortgage Program, and authorized the issuance of a Feasibility Letter of G.H. & S., Glencoe. Please note that this action does not constitute a commitment on the part of the Agency to finance the development. Additional analysis must be done before the final decision is made on providing a mortgage. Our action now is a determination by the Agency that the proposal, as currently structured, has a site which is acceptable, a market exists for the units, and the development plan as proposed is basically acceptable to the Agency. While this action does not commit the Agency to issue a mortgage for the development, it does provide assurance to the developer that the proposal at this state is acceptable and the Agency will continue to pursue mortgage funds. This letter is to assist you in understanding the current status of this proposed rental housing development with the Agency. It is not intended to influence the outcome of any deliberations regarding zoning or other land use considerations you may currently have with the developer. Thank you for your continued cooperation and commitment to the goal of providing decent and affordable housing for the citizens of your community. If you have any questions, please contact Marcia Kolb, Housing Development Officer, at (612) 296 -3028. Sincerel , i Jame J Sole xecut Direc cc. Ga , City Administrator 333 Sibley Street, Suite 200, St. Paul, Minnesota 55101 (612) 296.7608 Equal Opportunity Housing and Equal Opportunity Employment / (612) 587 -5151 fHUTlH CITY OF HUTCHINSON ;?? j4✓ASHiNG'GN AVENUE WES l j" HN�TCNiNSCIV, �ti1;1�:�;'. 55350 M E M 0 DATE: April 18, 1985 TO: Mayor and City Council FROM: Director of Engineering RE: Project No. 85 -01 -24 Street Resurfacing FOR YOUR INFORMATION According to the low bid received, the total project cost is $158,390.36. The cost is $5.28 per front foot of street. Based on an assessment of $3.00 per front foot and a credit of $2.28 per front foot, the cost for the project is as follows: City Cost Street R/W Corner Lot Credits City Cost Credits Street Assessed City Property Per Lot Total Peterson Circle 19740.00 $ -0- $ 1,322.40 ; 3062.40 Ash Street 6,563.40 11926.14 41988.17 13,477.71 Spruce Street 50682.45 -0- 49318.67 10,001.12 Northwoods Avenue 21690.82 71324.79 21045.02 12,060.63 Maple Street 49973.55 19230.24 3,779.90 91983.69 Oak Street 69607.56 3,442.56 5,021.76 15,071.88 10th Avenue N.E. 11923.48 2,568.19 1,461.84 57953.51 Alan Street 7,295.19 717.82 50444.36 13,457.37 Circle Drive 3,264.39 2,046.16 29481.17 7,791.72 Harrington Street 51085.96 49349.45 3,865.33 13000.74 Milwaukee Avenue 9,345.45 2,601.35 79102.56 199049.36 Water Street 31963.60 -0- 31012.33 61975.93 9th Avenue N.E. 21617.53 2,133.86 11989.32 69740.71 Lea Avenue 19917.36 1,728.27 1,457.19 5,102.82 Lewis Avenue 3,630.00 1,044.81 29758.80 71433.61 Bradford Street 782.25 19224.96 594.51 2,601.72 Lyndale Avenue 3024.00 475.20 2,526.24 69325.44 $71,406.99 $32,813.80 $54,169.57 $158,390.36 The total assessment is $71,406.99 and the total City Cost is $86,983.37. • 744zwx ��L Marlow V. Priebe Director of Engineering MVP /pv 0 M E M O R A N D U M M pE= £i "JED To Coalition Member Cities From: Mayor, Little Falls Chairman, Coalition Legislative Committee FOR YOUR INFORMATION Re: Update on Local Government Aid Date: April 9, 1985 The Local Government Finance Division of the House Tax Committee will begin work on Representative Schreiber's property tax simplification proposal and on various LGA proposals next week. The LGA proposals to be considered will include formulas proposed by the League, the suburban Municipal Legislative Commission (MLC) cities, and the Association of Small Cities. Your Legislative Committee met today and reviewed these formulas and other formula types. One of the other formula types we considered was a variable local effort formula that d0ributes LGA based on fiscal need (LGA plus levy), fiscal capacity (adjusted assessed value) and local effort (mill rate). This variable local effort formula is consistent with the Coalition's policy on LGA. Based on our review of these formulas, the Legislative Committee has taken the following positions: 1. To continue to support the original League formula for the sake of League unity. 2. To support a variable local effort formula because it would provide an equitable distribution of LGA for property tax relief. (A printout is attached that shows the impact of this type of formula on Coalition Cities.) 3. To oppose the suburban MLC and the small cities proposals because they were not agreed to in the League process and because they do not provide an equitable distribution of LGA for property tax relief. Your Legislative Committee has also asked Holmes & Graven to analyze the impact of Representative Schreiber's property tax simplification proposal on Coalition cities. We will send you t�r analysis as soon as it is available. 3 r_-�] I 04 -08 -1985 THIS IS RUN: BOB -- VARIABLE i.00AL EFFORT FORMULA. x CHANGE IN LGA W/ A 6% APPROP INCREASE. 12:09:16 • • *1 MINNESOTA COALITION OF OUTSTATE CITIES POPULATION FISC NEED /CAP AAV /CAPITA 84 EO MILLS x CHNG IN LGA PURE FORMULA DETROIT LAKES 7,057 193 5,780 18.53 7.44 26.13 BEMIDJI 11,285 196 4.449 20.11 2.97 10.41 SAUK RAPIDS 6,114 159 3,834 24.11 10.00 36.22 MANKATO 28,479 264 5,683 33.78 10.00 47.33 NEW ULM 13,751 215 5,025 27.87 10.00 56.22 MONTEVIDEO 5,832 197 3,754 29.12 10.00 50.45 MOORHEAD 29,466 173 4.175 28.09 10.00 64.28 BRAINERD 11,245 184 5,418 21.11 6.83 23.99 ALEXANDRIA 7,774 236 6,053 23.96 7.79 27.34 BLUE EARTH 4,125 200 4.405 33.39 10.00 70.17 ALBERT LEA 18,411 217 4,685 26.12 7.36 25.64 RED WING 13,748 438 14,743 26.39 0,00 -69.71 JACKSON 3,787 242 3.573 45.76 10.00 80.57 MORA 2,754 179 5,065 21.32 6.90 24.24 WILLMAR 16,784 152 5,016 19.61 7.28 25.58 INTHL FALLS 5,261 347 7,568 28.24 0.00 -20.52 CLEVELAND 726 141 3,151 37.12 10.00 157.46 LE SUEUR 3,700 191 4,757 25.23 10.00 46.35 MARSHALL 11,519 159 5.072 21.70 10.00 46.90 HUTCHIM50P 9,490 239 6,532 27.42 10.00 82.40 FAIRMONT 11.508 165 5,797 24.55 9.98 35.03 LITCHFIELD 5,832 159 5,076 18.49 5.59 19.64 LITTLE FALLS 7,163 196 3,645 25.17 5.12 17.97 AUSTIN 22,652 222 4.436 28.96 10.00 35.93 NO MANKATO 9,626 197 5.101 26.00 10.00 61.91 ST PETER 9.146 121 3.187 24.43 10.00 60.31 WORTHINGTON 10,315 225 4.740 33.62 10.00 46.07 ROCHESTER 59,307 221 7.382 21.30 10.00 35.41 STEWARTVILLE 4,062 135 3,784 25.58 10.00 54.22 FERGUS FALLS 12.669 239 5.625 22.45 5.11 17.94 PIPESTOME 4,594 183 3.605 25.65 6.83 31.02 FARIBAULT 16,205 221 4,327 29.71 10.00 40.00 NORTHFIELD 12,993 160 4,270 27.57 10.00 75.57 LUVERNE 4,577 155 4.146 17.50 1.31 4.62 ELK RIVER 7,214 112 6.602 13.35 7.61 27.43 3ARTELL 3.659 164 6.143 16.76 4.81 16.89 ST CLOUD 43.311 245 5.762 27.73 10.00 45.61 OWATONNA 18,538 213 5.063 30.42 10.00 68.54 MORRIS 5,282 215 3.540 33.00 10.00 47.61 BENSON 3,582 192 3.124 31.58 10.00 48.53 WASECA 8,352 201 4,636 25.80 10.00 47.75 3T JAMES 4.267 186 3.749 35.26 10.00 74.81 BRECKENRIDGE 3,951 225 2.777 42.69 10.00 48.51 WINONA 24,543 233 4.196 33.64 10.00 60.64 1 MONTICELLO 2.996 447 24.973 16.85 0.00 - 100.00 GRANITE FALLS 3,326 191 4.636 25.37 10.00 56.17 TOTAL 531,178 216 5,544 25.73 8.57 38.33 • Ll • FIRST CLASS CITIES POPULATION FISC NnD /CAP AAV /CAPITA 64 EO MILLS x CHNG IN LGA . PURE FORMULA . MINNEAPOLIS C 364,250 376 8,594 28.77 1.91 6.71 ST PAUL C 269.240 278 7,469 25.64 3.97 13.93 DULUTH 67,061 260 4,278 36.76 10.00 51.14 10,911 12.67 10.00 83.56 • BLOOMINGTON 83,710 Ll • MUNICIPAL LEGISLATIVE COMMISSION POPULATION FISC MEEO /CAP AAV /CAPITA 84 60 MILLS x CHNG IN LGA PURE FORMULA . BLAINE 32,810 88 5,524 12.13 2.66 . 9.32 BURNSVILLE 38,380 188 9.724 19.10 10.00 116.74 EAGAN 26.470 129 10,911 12.67 10.00 83.56 • BLOOMINGTON 83,710 166 11.693 13.29 8.36 29.37 BROOKLYN PARK 48,780 120 6.212 16.90 10.00 59.19 EDEN PRAIRIE 21,250 206 12,727 17.56 10.00 116.04 • EDINA 45.260 140 15.912 6.83 0.00 - 100.00 MAPLE GROVE 25.720 133 7.311 17.48 10.00 191.32 MINNETONKA 40,930 194 11.613 15.04 10.00 65.15 • PLYMOUTH 37,050 131 11,001 12.43 10.00 120.65 MAPLEWOOD 26.130 181 10,965 14.32 9.13 32.07 HOUNDS VIEW 12,870 99 5.590 12.09 7.81 27.43 • ROSEVILLE 35,770 129 10,647 11.21 3.22 11.31 SHOREVIEW 19,780 87 7,953 9.11 0.00 -24.65 WHITE BEAR LAKE 22,810 108 6,383 12.39 5.56 19.59 • WOODBURY 12,660 156 9,926 14.34 10.00 38.63 TOTAL S32,400 145 10,115 13.43 7.74 47.33 • • • • • • (612) 587 -5151 f/UTCH CITY OF HUTCHINSON 37 WASHING' ON AVENL,,E WEST HUTCHINSON %V NN 55350 TO: Mayor & City Council FROM: John McRaith, Assistant Recreation Director DATE: April 18, 1985 SUBJECT: Dandelion Control Program FOR YOUR INFORMATION In the past, our department has sprayed for dandelions on our more frequently used park areas, and the state right - of -ways in —our community. Spraying in other areas was done on a random basis when residents notified us of a dandelion problem. This season, we have purchased additional chemical to allow us to spray all city owned property in the community excluding the airport and Miller's woods. In addition, our weed inspector, Mark Schnobrich, will be watching for areas that may need respraying. As far as the private sector of our community is concerned, there are no • ordinances affecting dandelion control on provate property. We, therefore, have no recourse for dandelion problems on pri- vate property. The spraying program will be started within the next week or two, contingent upon weather conditions suitable for spray- ing. klm 0 (612) 587.5151 CITY OF HUTCHINSON i 37 A'ASHINGTON AVENUE A'EST FOR YOUR INFORMATION TO: Mayor & City Council FROM: John McRaith, Assistant Recreation Director DATE: April 18, 1985 UBJECT: Mosquito Spraying Program This year provides us with our first chance to obtain full season mosquito control. Mark Schnobrich, Cliff Paulsen and I attended a mosquito control seminar in early April to prepare for this season's program. We will begin spraying in mid -May and continue with twice a week sprayings throughout the summer. In addition, we briquettes in catch out the city. This they reach the adul of mosquito control overall. klm • will be using larvicides in the form of basins and stagnate ponds of water through - hinders the development of mosquitos before t stage. The combination of these two types should lead to a very effective program