City Council Minutes 08-12-1985MINUTES
REGULAR MEETING - MONTICELLO CITY COUNCIL
August 12, 1985
Members Present: Arve Grimsmo, Fran Fair, Bill Fair, Dan
Blonigen, Jack Maxwell.
Members Absent: None
1. Call to Order.
2. Approval of Minutes.
Motion was made by Bill Fair, seconded by Dan Blonigen, and
unanimously carried to approve the minutes of the special meeting
held July 29 and August 7, and the regular meeting held July 22,
1985.
3. Citizens Comments
Mr. Mel Wolters, Developer in the Meadows residential subdivision
plat, appeared before the Council requesting partial reimbursement
from the City for part of his ponding area construction costs
within the Meadows subdivision because of the Par West subdivision
draining storm water into the Meadows pond. Mr. Walters noted
that the developer of the Par West subdivision paid approximately
$1,900 to the City of Monticello to be allowed to drain storm
water into this pond and he felt he should be reimbursed this
amount if the pond is large enough to accept other subdivisions
water.
The Council Members suggested this item be placed on a future
agenda with additional background information before a decision
could be made.
4. Consideration of Pursuing Acquisition of the Assembly of God
Church Building.
Previously, the Council has discussed the possibility of the
City acquiring the vacated Assembly of God Church building
on 4th Street for the possible relocation of the Senior Citizen's
Center. The asking price for the Church at that time was
very high and the urgency of relocating the Senior Citizen's
Center was not present, so the proposal was not seriously
considered by the City. Several months ago, businesses in
the block where the Senior Citizen's Center is currently located,
expressed interest in expanding and inquired as to the availability
of the Senior Center property. At that point, the City revived
inquiries with respect to the Church building on 4th Street
for relocation purposes, but the asking price still was considered
too high at $200,000.
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Council Minutes - August 12, 1985
Since that time, the business interest in expanding on the
Senior Citizen's Center property has diminishedy
and it appears there is no urgency for the Senior Citizen's
Center to be relocated.
As a result of these events and the high asking price for
the Church property, it was the consensus of the Council to
drop all negotiations at this time for the Church building.
5. Consideration of Change Order #1 for Project 85-1 Interceptor
Sewer.
LaTour Construction Company, contractor for the recently completed
interceptor sewer crossing of Highway 25 requested a change
order in the amount of $4,500 for the excavation of an additional
three feet of material and extra dewatering cost due to what
the contractor felt was an error in the plans prepared by
the City Engineer.
LaTour Construction noted that the plan elevations were incorrect
and there was an additional three feet of excavation that
was necessary and the additional cost to the contractor was
$6,300, but the contractor agreed that if he had known of
the extra excavation at the bidding process his bid would
have reflected approximately $4,500 more in cost. It is recommended
by Public Works Director, John Simola, that the extra $4,500
was reasonable and recommended that the change order be initiated.
Motion was made by Bill Fair, seconded by Jack Maxwell, and
asked to be carried to approve Change Order #1 on the 85-1
Interceptor Sewer Project in the amount of $4,500 to LaTour
Construction Company.
6. Consideration of Adopting a Resolution Granting Preliminary
Approval to a Proposal for the Sale of Industrial Revenue
Bonds - Applicant, Veit Construction.
Mr. John Gries, attorney representing Veit Construction Company,
appreared before the Council requesting approval of a Resolution
granting preliminary approval to a proposal for Industrial
Revenue Bonds for the construction of a 33,000 square foot
grocery and retail building to be located on property just
north of the cemetary along Highway 25 near the railroad tracks.
Initially, Veit Construction discussed with the City the devlopment
proposal and the use of tax increment financing for this property
due to its severe topographical and foundation problems of
the site. During their feasibility study on the project,
developers decided to request Industrial Revenue Bonds also
be approved for the project to help lower the cost of financing.
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Council Minutes - August 12, 1985
Since Industrial Revenue Bonds are only issued now after an
approved allocation is granted from the State, the developers
requested approval of a preliminary resolution which would
allow them to request money through the State Pool. The preliminary
resolution would in no way commit the City Council to approve
the final application. The deadline for requesting allocation
from the State Pool is September 1, 1985.
Additional details to be worked out should the Council proceed
with Industrial Revenue Bond issues concern the extension
of 6th Street at the south end of the property and whether
the Streets should be vacated for additional parking area
for the development or whether the City should retain the
street for right-of-way purposes. In addition, all 19 points
concerning the creation of jobs, tax base increase, and the
but for clause which determines that the project would not
proceed without Industrial Revenue Bonds must be established
before the allocation can be approved by the State.
Some Council Members were concerned over approving a commercial
project such as this for a grocery business that is already
established in town when a similar proposal was made previously
for a motel that was not approved because it wasn't shown
that a need existed for additional motels.
Since the granting of a preliminary approval without holding
a public hearing does not imply consent that the project will
be approved at a later date by the Council, a motion was made
by Bill Fair, seconded by Fran Fair to adopt the resolution
granting preliminary approval and allowing the developer to
apply for IRB's through the State Allocation Pool. Voting
in favor was everybody but Dan Blonigen who was opposed.
See Resolution 1985 #13.
7. Consideration of Acquisition of Various Public Works Equipment.
Public Works Director, John Simola, reviewed with the Council
on various equipment items that had been budgeted for during
1985 and which he recommended be approved for purchase at
this time.
Motion was made by Maxwell, seconded by Bill Fair and asked
to be carried to authorize the purchase of the following equipment
as recommended by the Public Works Director.
TOTAL
ITEM SUPPLIER COST
(1) 2 -Door Operators Automatice Door $ 954
1/2 H.P. - 14' x 14' Monticello
(2) Pipe Locator Davis Water 1,545
Water Lines. Brooklyn Park
(3) Alarm System Sentry Systems 1,205
Hi & Lo Water Hugo, MN
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Council Minutes - August 12, 1985
8. Consideration of Authorizing Annexation Study.
Because of various reasons, including the possible location
of a water tower in the orderly annexation area of the Monticello
Township, the City Council has considered the possibility
of annexing all or a portion of the orderly annexation area.
The consulting City Planner, Dahlgren, Shardlow and Uban Inc.,
along with the consulting City Engineer, Orr-Schelen-Mayeron &
Associates presented previously a proposal for a review of
the orderly annexation area and a study to determine whether
the area is now or is about to become urban in nature and
suitable for annexation. The estimated cost of the study
presented by the consulting planner and engineer was estimated
at $40-45,000.
The Council again discussed the merits of pursuing a study
of the orderly annexation area, or whether to drop the issue
entirely at this time. Council Member, Blonigen, was not
certain whether the City should be initiating annexation of
any of the township area at this time but is more concerned
with the City having more input into the planning and regulating
of future subdivisions, etc. within the townships OA area.
This additional input would help create smaller lots for residential
developments that would be more suitable for connection to
City utilities if and when they become part of the City limits.
In addition, Mr. Blonigen felt that annexation at this time
may result in more cost for the City than the tax base generated.
Council Members, Bill and Fran Fair, felt the study proposed
by the consultants is necessary to update the information
that is necessary to determine whether annexation is appropriate
now or in the near future.
city Administrator, Tom Eidem, noted that the review of the
orderly annexation area as proposed by the consultants should
not be considered just a planning study but as a study to
determine whether or not annexation should be pursued at the
present time. Mr. Eidem noted that if the Council authorized
the study to be commenced, the Council should be ready to
act on the recommendations of the study which will either
be to pursue annexation or to drop annexation at this time.
If the consensus of the Council is at this time not to pursue
annexation, the study would be of no use to the City.
WAM
TOTAL
ITEM
SUPLIER
COST
(4)
Aux. Heater
Olson Elec.
$ 720
With
50' Cord
Monticello
(5)
Used Port.
NB Instruments
11993
Flow
Meter
Horsham, Pa.
TOTAL
$62417
8. Consideration of Authorizing Annexation Study.
Because of various reasons, including the possible location
of a water tower in the orderly annexation area of the Monticello
Township, the City Council has considered the possibility
of annexing all or a portion of the orderly annexation area.
The consulting City Planner, Dahlgren, Shardlow and Uban Inc.,
along with the consulting City Engineer, Orr-Schelen-Mayeron &
Associates presented previously a proposal for a review of
the orderly annexation area and a study to determine whether
the area is now or is about to become urban in nature and
suitable for annexation. The estimated cost of the study
presented by the consulting planner and engineer was estimated
at $40-45,000.
The Council again discussed the merits of pursuing a study
of the orderly annexation area, or whether to drop the issue
entirely at this time. Council Member, Blonigen, was not
certain whether the City should be initiating annexation of
any of the township area at this time but is more concerned
with the City having more input into the planning and regulating
of future subdivisions, etc. within the townships OA area.
This additional input would help create smaller lots for residential
developments that would be more suitable for connection to
City utilities if and when they become part of the City limits.
In addition, Mr. Blonigen felt that annexation at this time
may result in more cost for the City than the tax base generated.
Council Members, Bill and Fran Fair, felt the study proposed
by the consultants is necessary to update the information
that is necessary to determine whether annexation is appropriate
now or in the near future.
city Administrator, Tom Eidem, noted that the review of the
orderly annexation area as proposed by the consultants should
not be considered just a planning study but as a study to
determine whether or not annexation should be pursued at the
present time. Mr. Eidem noted that if the Council authorized
the study to be commenced, the Council should be ready to
act on the recommendations of the study which will either
be to pursue annexation or to drop annexation at this time.
If the consensus of the Council is at this time not to pursue
annexation, the study would be of no use to the City.
WAM
Council Minutes - August 12, 1985
Motion was made by Fran Fair, seconded by Bill Fair to authorize
the consulting planner and engineer to prepare a review and
study of the orderly annexation area as to whether the City
should pursue annexation. Voting in favor was Fran Fair,
Bill Fair, Arve Grimsmo, opposed were Maxwell and Blonigen.
9. Consideration of granting an Off -sale 3.2 Beer License - Riverroad
Plaza.
Motion was made by Dan Blonigen, seconded by Maxwell and asked
to be carried to approve the _issuance of a non -intoxicating
malt liquor off -sale license to the Riverroad Plaza Convenience
Store.
10. Adjourn.
Rick Wolfstelle ;
Assistant Administrator
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