cp09-29-2009 cAGENDA
HUTCHINSON CITY COUNCIL
SPECIAL MEETING
TUESDAY, SEPTEMBER 29, 2009 —1:00 P.M.
1. CALL TO ORD —1:00 P.M.
2. NEW BUSINESS
(a) CONSIDERATION FOR APPROVAL OF RESOLUTION APPROVING THE ISSUANCE OF
UP TO $4 OF THE HUTCHINSON ECONOMIC DEVELOPMENT AUTHORITY'S
INDUSTRIAL DEVELOPMENT REVENUE BONDS (DAGGETT VENTURES II, LLC
PROJECT), SERIES 2009
Action — Motion to reject — Motion to approve
(b) CONSIDERATION FOR APPROVAL OF ITEMS FOR ENERGY PARK IMPROVEMENTS
PHASE 1 — LETTING NO. 1, PROJECT NO. 09 -01 (ADOPTING ASSESSMENT, ACCEPTING
BID AND AWARDING CONTRACT)
Action — Motion to reject — Motion to approve
(c) CONSIDERATION FOR APPROVAL OF ITEMS FOR POTENTIAL MN/DOT TRUNK
HIGHWAY 7/15 PROPERTY TRANSACTIONS
Action — Motion to reject — Motion to approve
(d) CONSIDERATION FOR APPROVAL OF AMENDING RESOLUTION NO. 13624 —
ARESOLUTION APPROVING A VARIANCE TO ALLOW AN INCREASE IN LOT
COVERAGE IN THE SHORELAND AREA FROM 25% TO 28% FOR ADDITION TO
EXISTING HOUSE AT 1880 WEST SHORE DRIVE SW
Action — Motion to reject — Motion to approve
3. ADJOURN
Hutchinson
An Economic U,eveiopment Authority
11_lL I s ] 0'
Date: September 24, 2009
To: Hutchinson City Council
From: Miles R. Seppelt
EDA Director
RE: Agenda Items
Special Meeting of City Council
Item #1
RESOLUTION APPROVING THE ISSUANCE OF UP TO $4,845,000 OF THE
HUTCHINSON ECONOMIC DEVELOPMENT AUTHORITY'S INDUSTRIAL
DEVELOPMENT REVENUE BONDS (DAGGETT VENTURES II, LLC PROJECT),
SERIES 2009
The Hutchinson EDA is proposing to provide "conduit financing" on behalf of Daggett
Ventures II (Tom Daggett) for the NuCrane Manufacturing Project (formerly Atomic
Crane).
NuCrane Manufacturing will create 20 jobs within two years of the company beginning
operation, and 50 to 60 jobs within 5 years. The facility will be 51,000 square feet in
size when complete.
By utilizing the EDA's bonding authority, the borrower, Daggett Ventures II, can access
$4,845,000 of project financing from Center National Bank of Litchfield in the form of
Industrial Development Revenue Bonds. The actual fiscal relationship will be between
Daggett Ventures II and Center National Bank, with the EDA providing the legal
authority, in other words being the "conduit."
Because these are revenue bonds, there is no financial risk to the city or the EDA.
Jerry Gilligan of Dorsey & Whitney, the city's Bond Council, is reviewing all the legal
documents and will provide an opinion before our meeting Tuesday. Costs incurred by
a �)
the city / EDA in connection with this bond issuance will be reimbursed by Daggett
Ventures II.
Finally, the Bond Council for the project, Mr. Jim Stewart, will be on hand at the meeting
to answer any questions you may have.
I+o m :f 7
CONSIDERATION FOR APPROVAL OF ITEMS FOR ENERGY PARK
IMPROVEMENTS PHASE 1 — LETTING NO. 1, PROJECT NO. 09 -01 (ADOPTING
ASSESSMENT, ACCEPTING BID AND AWARDING CONTRACT)
If we can get our "Notice to Proceed" from the Federal EDA, the City Council can award
this project and construction will begin shortly thereafter.
If you have any questions or need additional information, please give me a call at 234-
4223.
Thank you for your time and consideration.
ate)
RESOLUTION NO. 13632
RESOLUTION APPROVING THE ISSUANCE OF UP TO $4
OF THE HUTCHINSON ECONOMIC DEVELOPMENT AUTHORITY'S
INDUSTRIAL DEVELOPMENT REVENUE BONDS
(DAGGETT VENTURES II, LLC PROJECT), SERIES 2009
BE IT RESOLVED, by the City Council (the "Council ") of the City of Hutchinson,
Minnesota (the "City "), as follows:
SECTION 1. FINDINGS It is hereby found, determined and declared as follows:
1.01. Pursuant to Minnesota Statutes, Chapter 469, and by a Resolution duly adopted
by the City Council on January 2, 1998, the Economic Development Authority of the City of
Hutchinson, Minnesota (the "Authority "), was established. Section 3.A. of the Resolution
provides that the sale of bonds by the Authority must be approved by the City Council.
1.02. In furtherance of the objectives of the City and the Authority, the Authority
intends to issue its Industrial Development Revenue Bonds (Daggett Ventures II, LLC Project),
Series 2009 pursuant to Minnesota Statutes, Sections 469.152 through 469.165, in the maximum
principal amount of $4,845,000 (the "Bonds ").
1.03. Proceeds of the Bonds will be loaned to Daggett Ventures II, LLC, a Minnesota
limited liability company (the "Company "), pursuant to a Loan Agreement between the Authority
and the Company dated as of October 1, 2009 (the "Loan Agreement "), to provide financing for
the construction, acquisition and installation of equipment to be used in connection with
manufacturing and functionally related facilities in Hutchinson, Minnesota (the "Project ").
1.04. The City Council finds and determines that the development and financing of the
Project is in the best interests of the health, safety, prosperity and general welfare of the residents
of the City and that the Project will provide opportunities for employment for residents of the
City and surrounding area and will add to the tax base of the City and overlapping tax
jurisdictions.
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SECTION 2. APPROVAL
2.01. The issuance of the Bonds, and the loan of the proceeds to the Company pursuant
to the Loan Agreement to finance the Project, is hereby approved.
2.02. The Bonds are not to be payable from or charged upon any funds other than the
revenue under the Loan Agreement pledged to the payment thereof, neither the City nor the
Authority shall be subject to any liability thereon; nor shall the holder of any Bonds ever have the
right to compel any exercise by the City of its taxing powers to pay any of the Bonds or the
interest or premium thereon, or to enforce payment thereof against any property of the City; and,
the Bonds shall not constitute a debt of the City or Authority within the meaning of any
constitutional or statutory limitation.
The foregoing resolution was offered by Councilman
seconded by Councilman
following vote:
Ayes:
Nays:
Passed this 29` day of September, 2009.
Steven W. Cook, Mayor
ATTEST:
Gary D. Plotz, City Administrator
and
and was declared carried on the
a(9-)
RESOLUTION NO. 13611
RESOLUTION DECLARING ADEQUACY OF PETITION
AND ORDERING IMPROVEMENT
SA -5091
LETTING NO. 1 /PROJECT NO. 09-01
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON,
MINNESOTA:
1. A certain petition requesting the improvement of 253 Hackbarth St SE — County PID#
23.487.0010 - City PID # 05- 116 -29 -03 -0050 — Lot 1, Block 1, Energy Park North & 1010
Benjamin Ave SE — County PID# 23.487.0050 — City PID# 05- 116 -29 -02 -0040 in conjunction
with the following improvement project:
Energy Park Improvements Phase 1 by new roadway construction and utility infrastructure
installations including construction of trunk and lateral storm sewer and treatment/drainage
improvements, trunk and lateral sanitary sewer and services, trunk and lateral watermain and
services, grading, aggregate base, concrete curb and gutter, bituminous base, bituminous
surfacing, lighting, landscaping, restoration and appurtenances; and
filed with the council on September 8th, 2009 is hereby declared to be signed by the required
percentage of owners of property affected thereby. This declaration is made in conformity to
Minnesota Statutes, Section 429.035.
1. Such improvement is hereby ordered.
Adopted by the Council this 29th day of September 2009.
Mayor
City Administrator
�) (' b)
RESOLUTION NO. 13612
RESOLUTION DECLARING COST TO BE ASSESSED AND
ORDERING PREPARATION OF PROPOSED ASSESSMENT
ASSESSMENT ROLL NO. 5091
LETTING NO. 1 /PROJECT NO. 09-01
WHEREAS, cost has been determined for the improvement of
Energy Park Improvements Phase 1 by new roadway construction and utility infrastructure
installations including construction of trunk and lateral storm sewer and treatment/drainage
improvements, trunk and lateral sanitary sewer and services, trunk and lateral watermain and
services, grading, aggregate base, concrete curb and gutter, bituminous base, bituminous
surfacing, lighting, landscaping, restoration and appurtenances,
and the bid price for such improvement is $1,805,921.10 and the estimated expenses incurred or to be
incurred in the making of such improvement amount to $433,421.06, so that the total estimated cost of the
improvement is $2,239,342.16.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON,
MINNESOTA:
1. The portion of the cost of such improvement to be paid by the City is hereby declared to be an estimated
amount of $2,225,428.27 and the portion of the cost to be assessed against benefited property owners is
declared to be $139,813.92.
2. Assessments shall be payable in equal annual installments extending over a period of ten (10) years, the
first of the installments to be payable on or before the first Monday in January, 2010 and shall bear interest at
the rate of percent per annum from November 1, 2009.
3. The City Administrator, with the assistance of the City Engineer, shall forthwith calculate the proper amount
to be specially assessed for such improvement against every assessable lot, piece or parcel of land within the
district affected, without regard to cash valuation, as provided by law, and he shall file a copy of such proposed
assessment in his office for public inspection.
4. The City Administrator shall, upon the completion of such proposed assessment, notify the Council thereof.
Adopted by the Council this 29th day of September 2009.
Mayor
City Administrator
j C-6)
RESOLUTION NO. 13613
RESOLUTION WAIVING HEARING ON PROPOSED ASSESSMENT
ASSESSMENT ROLL NO. 5091
LETTING NO. 1 /PROJECT NO. 09-01
WHEREAS, by a resolution passed by the Council on the 8th day of September 2009, the City Engineer
was directed to prepare a proposed assessment of the cost of improving:
Energy Park Improvements Phase 1 by new roadway construction and utility infrastructure
installations including construction of trunk and lateral storm sewer and treatment/drainage
improvements, trunk and lateral sanitary sewer and services, trunk and lateral watermain and
services, grading, aggregate base, concrete curb and gutter, bituminous base, bituminous
surfacing, lighting, landscaping, restoration and appurtenances.
WHEREAS, the City Engineer has notified the Council that such proposed assessment has been
completed and filed in his office for public inspection.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON,
MINNESOTA:
1. The owners of the affected properties have waived hearing on said proposed assessment.
2. The owner of any property so assessed may, at any time prior to certification of the assessment to the
County Auditor, pay the whole of the assessment on such property, with interest accrued to the date of
payment, to the City Administrator, except that no interest shall be charged if the entire assessment is paid by
November 16th, 2009. He may at any time thereafter, pay to the City Administrator, the entire amount of the
assessment remaining unpaid, with interest accrued to December 31 of the year in which such payment is
made. Such payment must be made before November 15 or interest will be charged through December 31 of
the succeeding year.
Adopted by the Council this 29th day of September 2009.
Mayor
City Administrator
aC6)
RESOLUTION NO. 13614.
RESOLUTION ADOPTING ASSESSMENT
ASSESSMENT ROLL NO. 5091
LETTING NO. 1 /PROJECT NO. 09 -01
WHEREAS, pursuant to resolution and waiver of hearing the Council has met and reviewed the
proposed assessment for improvement of:
Energy Park Improvements Phase 1 by new roadway construction and utility infrastructure
installations including construction of trunk and lateral storm sewer and treatment/drainage
improvements, trunk and lateral sanitary sewer and services, trunk and lateral watermain
and services, grading, aggregate base, concrete curb and gutter, bituminous base,
bituminous surfacing, lighting, landscaping, restoration and appurtenances.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON,
MINNESOTA:
1. Such proposed assessment, a copy of which is attached hereto and made a part hereof, is
hereby accepted, and shall constitute the special assessment against the lands named therein,
and each tract of land therein included is hereby found to be benefited by the proposed
improvement in the amount of the assessment levied against it.
2. Such assessment shall be payable in equal annual installments extending over a period often (10)
years, the first of the installments to be payable on or before the first Monday in January, 2010 and shall bear
interest at the rate of percent per annum as set down by the adoption of this assessment resolution.
To the first installment shall be added interest on the entire assessment from November 1, 2009, until the 31 st
day of December 2010. To each subsequent installment when due, shall be added interest for one year on all
unpaid installments.
3. The owner of any property so assessed may, at any time prior to certification of the assessment to
the County Auditor, pay the whole of the assessment on such property, with interest accrued to the date of
payment, to the City Finance Department, except that no interest shall be charged if the entire assessment is
paid by the 16th day of November, 2009; and he may, at any time thereafter, pay to the City Finance
Department the entire amount of the assessment remaining unpaid, with interest accrued to the 31 st day of
December, of the year in which such payment is made. Such payment must be made before November 15, or
interest will be charged through December 31, of the next succeeding year.
4. The Administrator shall forthwith transmit a certified duplicate of this assessment to the County
Auditor to be extended on the property tax lists of the County, and such assessment shall be collected and
paid over in the same manner as other municipal taxes.
Adopted by the Council this 29th day of September 2008.
Mayor
City Administrator
,r) ('6)
RESOLUTION NO. 13615
RESOLUTION ACCEPTING BID AND AWARDING CONTRACT
LETTING NO. 1 /PROJECT NO. 09-01
Whereas, pursuant to an advertisement for bids for the furnishing of all labor and material for the improvement of:
Energy Park Improvements Phase 1 by new roadway construction and utility infrastructure
installations including construction of trunk and lateral storm sewer and treatment/drainage
improvements, trunk and lateral sanitary sewer and services, trunk and lateral watermain and
services, grading, aggregate base, concrete curb and gutter, bituminous base, bituminous
surfacing, lighting, landscaping, restoration and appurtenances; and
bids were received, opened and tabulated according to law, and the following bids were received complying with
the advertisement:
Bidder
Amount Bid
Mathiowetz Construction of Sleepy Eye MN
$1,805,921.10
Friedges Contracting Co. of Lakeville MN
$1,854,926.91
Northdale Construction of Albertville MN
$1,889,473.13
R & R Excavating Inc of Hutchinson MN
$1,889,462.12
Hjerpe Contracting Inc of Hutchinson MN
$1,898,289.05
Duininck Inc of Prinsburg MN
$1,902,303.61
Kuechle Underground Inc of Kimball MN
$2,036,499.49
S R Weidema Inc of Maple Grove MN
$2,101,551.80
and whereas, it appears that Mathiowetz Construction of Sleepy Eye MN is the lowest responsible bidder.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUTCHINSON,
MINNESOTA:
The mayor and city administrator are hereby authorized and directed to enter into a contract with
Mathiowetz Construction of Sleepy Eye MN in the amount of $1,805,921.10 in the name of the City of
Hutchinson, for the improvement contained herein, according to the plans and specifications therefor
approved by the City Council and on file in the office of the City Engineer.
2. The City Engineer is hereby authorized and directed to return forthwith to all bidders the deposits made
with their bids, except that the deposits of the successful bidder and the next lowest bidder shall be
retained until a contract has been signed, and the deposit of the successful bidder shall be retained until
satisfactory completion of the contract.
Adopted by the Hutchinson City Council this 29th day of September 2009.
Mayor
City Administrator
Q L6)
CITY OF HUTCHINSON
RESOLUTION NO. 13623
IT IS RESOLVED that the City of Hutchinson hereby authorizes the acceptance of $81,700.00
from the State of Minnesota, Department of Transportation for the sale of 4.04 acres of existing
city park property along Les Kouba Parkway NW (formerly Dakota Rail parcels) to the State of
Minnesota, Department of Transportation, as previously approved by the Hutchinson City
Council on June 23, 2009.
Adopted by the Hutchinson City Council this 29th day of September, 2009.
Mayor, Steven W. Cook
City Administrator, Gary D. Plotz
0 (C-)
Melissa Starke
From: Gary Plotz
Sent: Thursday, September 24, 2009 3:12 PM
To: Bill Arndt; Chad Czmowski; Eric Yost; Jim Haugen; Steve Cook
Cc: Bonnie Baumetz; Marc Sebora
Subject: Gary: PC Items Language - Jeremy Crosby - Shoreline Ordinance
Council Members,
After looking at the shoreline ordinance and specifically the platting chart, I would concur that it would be helpful to "add
the fact" that the lot was platted in such a way it was under the 10,000 square feet minimum requirement of the Shoreline
Ordinance. The density (lot size) probably was altered as the lot was in a Planned Unit Development; however that
should not change the fact that the lot dimensions are unique.
Gary
From: Steve Cook [mailto:scook @hutchtel.net]
Sent: Thursday, September 24, 2009 6:42 AM
To: Melissa Starke
Cc: Gary Plotz
Subject: PC Items Language
Hi Melissa,
Hope this helps. Call if you need to.
Thanks, Steve
6(c)1
1. The standards for granting a variance have been met, including the finding of undue hardship and uniqueness due
to existing non - conforming setback as the structure was constructed prior to modern zoning standards, and alignment and
accessibility to the garage.
6(c)2
1. The final plat shall be recorded at the McLeod County Recorder's office within 270 days of approval and will include
a new drainage and utility easement along the easterly property line.
10(b)
1. The standards for granting a variance have been met, including the finding of undue hardship and uniqueness due to
existing drainage in the back yard directing that drainage to a catch basin along Underwood Ave to the west away from
the lake, and a portion of the property not being in the shoreland district.
2. The variance would not alter
3. The variance is approved with ......
Melissa, I would like to add an agenda item to Tuesdays meeting to discuss amending this item to include the
small size of the lot (9,000 square feet where 10,000 square feet is normally required). That's the real hardship.
Ask Gary about doing this and make sure applicant is notified if necessary. I'm not trying to change what was
approved, just clean up and strengthen the finding from a precedent standpoint.
NOTICE: Unless restricted by law, e-mail correspondence to and from the City of Hutchinson or
Hutchinson Utilities may be public data subject to the Minnesota Data Practices Act and /or may be
disclosed to third parties.
c)(J)
RESOLUTION NO. 13624
RESOLUTION APPROVING A VARIANCE TO ALLOW AN INCREASE IN LOT
COVERAGE IN THE SHORELAND AREA FROM 25% TO 28% FOR ADDITION TO
EXISTING HOUSE AT 1880 WEST SHORE DRIVE S.W.
Whereas, Jeremy and Stacy Crosby, property owners, have requested approval of a variance to
allow an increase in lot coverage in the shoreland area from 25% to 28% for an addition to
existing house at 1880 West Shore Drive S.W. with the following legal description:
Legal Description: Lot 18, Block 1, Island View Heights Third Addition
Whereas, the Planning Commission met on September 15, 2009, and held a public hearing on the
request and considered the requirements of the Zoning Ordinance and effects of the proposal 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 consistency
with the Comprehensive Plan, and hereby recommends approval of the request.
The City Council has considered the recommendation and findings of the Planning Commission
and hereby does recommend approval of the variance, subject to the following findings and
conditions:
1. The standards for granting a variance have been met, including a finding of undue
hardship and uniqueness due to existing drainage in the back yard directing that drainage
to a catch basin along Underwood Avenue to the west away from the lake, and a portion
of the property not being in the shoreland district.
2. The variance would not alter the essential character of the locality.
3. The variance is approved with the percentage of coverage being no greater than 28 %.
4. The variance is approved pending construction of a rain garden. Size and construction
methods must be approved by staff. The rain garden must be constructed by June 1,
2010.
Adopted by the City Council this 22" day of September, 2009.
ATTEST:
Gary D. Plotz Steven W. Cook
City Administrator Mayor
C:)- (J)