City Council Minutes 11-12-1985MINUTES
REGULAR MEETING - MONTICELLO CITY COUNCIL
Tuesday, November 12, 1985 - 7:30 p.m.
Members Present: Arve Grimsmo, Fran Fair, Bill Fair, Jack Maxwell,
Dan Blonigen.
Members Absent: None.
2. Approval of Minutes.
Motion was made by Maxwell, seconded by Bill Fair, to approve the
minutes of the regular meeting held October 28, 1985. Voting in
favor was Arve Grimsmo, Bill Fair, Jack Maxwell, Dan Blonigen.
Fran Fair abstained due to her absence at the last meeting.
4. Consideration of Adopting a Tax Increment Finance Plan and District
Approval - Raindance Properties.
At the previous Council meeting, a public hearing was held on the proposed
adoption of a Tax Increment Finance Plan for Raindance Properties to
construct a 33,000 sq. ft. retail center on Block 15. No comments
were heard from the public; and since that time, the HRA and the developer
have met and agreed to execute a development agreement which stipulates
that in any year that the tax increment falls short of the required
payment on the bonds for this project, the developers will pay to the
HRA an amount sufficient to make the necessary payment so that a tax
levy is not necessary by the City.
Gae Veit, representing Raindance Properties, appeared before the Council
to affirm the developer's agreement with the HRA and also noted that
as part of the agreement, Raindance Properties will give 12 months'
effort toward finding an occupant to fill the vacancy of the old Maus
Foods Store. It was noted that if an occupant is not able to be found
during the 12 months, Raindance Properties will contribute $16,250.00
to the HRA to help the City entice a new tenant for the vacated Maus
Foods Store.
As part of the Tax Increment Finance Plan, the City will sell Tax Increment
Bonds in the amount of $350,000.00 and use the proceeds to acquire
Block 15 for $229,000.00 and construct Sixth Street from Highway 25
to Cedar Street. The HRA shall then sell the land to Raindance Properties
for the sum of $62,000.00, at which time the developer will make the
site and soil corrections and construct the building with full parking
facilities and landscaping.
Motion was made by Fran Fair, seconded by Bill Fair, and unanimously
carried to adopt Resolution 1985 #23 establishing Tax Increment Finance
District #6 and Financing Plan for said District.
Council Minutes - 11/12/85
Motion was also made by Bill Fair, seconded by Dan Blonigen, and
unanimously carried to adopt Resolution 1985 #24 requesting the
County Auditor certify the original assessed value of the property
within the Tax Increment District #6.
5. Consideration of a Resolution Authorizing the Sale of Tax Increment
Finance Bonds - Raindance Properties Project.
Mr. Jerry Shannon of Springsted, Inc., the City's Fiscal Consultants,
reviewed with the Council the proposed Tax Increment Bond sale
in the amount of $350,000.00 to finance the Raindance Properties
Project. Mr. Shannon noted that the bond sale amount included
capitalized interest to cover the bond payments due until the
year 1988, at which time the tax increments from the project should
be sufficient to cover all debt payments. It was recommended
that the sale of the bonds take place on December 9 at 12:00 noon,
with the possible awarding of the sale at the Council meeting
that evening, December 9, 7:30 p.m.
Motion was made by Maxwell, seconded by Bill Fair, and unanimously
carried to adopt a resolution authorizing the sale of Tax Increment
Bonds in the amount of $350,000.00 for the Raindance Properties
Project. See Resolution 1985 #25.
6. Consideration of Making Final Payment to Greg Vetsch Construction
for City Hall Reroofing.
Recently, the City Attorney has been negotiating with the City
Hall roofing contractor's attorney in an effort to resolve damage
that has occurred at City Hall during the roofing project and
the final payment due the contractor for the roofing project.
It is the recommendation of the City Attorney that a representative
of the City Council be appointed along with the City Administrator
to negotiate directly with Mr. Greg Vetsch, the roofing contractor,
and his attorney regarding a final settlement.
Although it is uncertain at this time whether the City will recover
any damages or whether the final payment for the labor contractor
will be made, a motion was made by Fran Fair, seconded by Maxwell,
and unanimously carried to appoint Councilmember Bill Fair as
the representative of the City Council to meet with the City Administrator
and Mr. Vetsch to negotiate some type of settlement and to report
back to the Council on their recommendations to resolve the matter.
7. Consideration of Waiving 30 -day Waiting Period for Issuance of
Bingo License - Legion Club.
The American Legion Club has applied to the State Charitable Gambling
Board for a license to conduct bingo operations at the Legion
Club to be manned by the Legion Softball members.
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Council Minutes - 11/12/85
The State Charitable Gambling Board has indicated that the license
request would be granted provided the City Council does not have
any objections to the issuance of the license and agrees to waive
its 30 -day waiting period.
Motion was made by Fran Fair, seconded by Blonigen, and unanimously
carried to authorize a letter to be written to the Charitable
Gambling Board indicating no opposition to the Bingo License application
submitted by the Legion Club.
8. Consideration of Resolution Setting a Public Hearing on Redevelopment
Plan Modification, Tax Increment District #2 Modification, and
the Proposed Tax Increment District #7.
Recently, the HRA passed a resolution to modify the Redevelopment
Plan area to include Blocks 38 and 39 of Lower Monticello, along
with an unplatted area consisting of the former Rand Mansion and
Little Mountain Settlement property. The main purpose of the
redevelopment area modification was to include the property now
consisting of the Nursing Home into the redevelopment area to
allow for possible Tax Increment District to be established for
the Nursing Home property as a proposal for developing the Nursing
Home into an intermediate care rental building consisting of 25
one -bedroom units for elderly people in the age range of 75-85
years old.
The Monticello HRA, as part of the modification approval, requested
that the City Council hold a public hearing on November 25, 19852
to consider this expansion of the Redevelopment Plan.
Motion was made by Bill Fair, seconded by Fran Fair, and unanimously
carried to adopt a resolution setting a public hearing regarding
the modification of the existing redevelopment project area and
public hearing for proposed Tax Increment Finance District #7
for the Nursing Home Project on Monday, November 25, 1985. See
Resolution 1985 #26.
Also, the HRA recently approved a modification to Tax Increment
District #2 (Metcalf & Larson Project) which would enlarge the
district to include additional parcels of property in Blocks 50
and 51 in the City of Monticello. The enlarged area meets all
of the state requirements and consists of some blighted land and
buildings. The proposed modification of District #2 would provide
an added incentive for future HRA projects within the District.
Motion was made by Blonigen, seconded by Maxwell, and unanimously
carried to adopt a resolution setting November 25 as the date
for a public hearing to consider modifying District #2 to include
the additional parcels of land. See Resolution 1985 #27.
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Council Minutes - 11/12/85
9. Consideration of Setting a Special Meeting to Discuss Salary Negotiations
and Policy.
Previously, the City Council has met during November or early
December to determine salary negotiations for all non-union personnel
for the upcoming year.
Currently, the City of Monticello is involved in a comparable
worth study which is reviewing all City positions, which is expected
to be completed in the near future. The completed study may indicate
that some salary adjustments between different classifications
of employees may be necessary to meet the State mandated comparable
worth laws. As a result, it was the general consensus of the
Council that salary negotiations for 1986 be discussed by the
Council after the comparable worth study is completed to avoid
duplication of efforts. It was noted that any salary adjustments,
if made, would be retroactive to January 1, 1986.
10. Consideration of Acquiring Lot 1, Block 12 (Fire Hall Site).
The new City Hall Fire site consists of Lots 2-5, Block 12, which
was purchased in December of 1984 from Mr. Jean Brouillard. The
remaining lot within that block is Lot 1, which is divided into
two parcels and owned by two separate individuals. Although Lots 2-5
were sufficient for the Fire Hall project, the two owners of Lot 1
have indicated a willingness to sell their property to the City
if the City was interested. The north half of Lot 1 contains
a tin shed, and the asking price was $12,500.00. The south half
consists of a ;mall home, and the owner estimated the value at
approximately $38,000.00.
It was the general consensus of the Council that the asking prices
appeared to be quite high and that at the present time, the City
was not in need of additional land at the Fire Hall site and directed
the staff not to pursue any further negotiations at this time
regarding purchase.
11. Consideration of a Conditional Use Request to Allow a Duplex Addition
to an Existing House - Applicant, Ken Larson.
Mr. Ken Larson requested a conditional use permit to allow for
the construction of a duplex addition to his existing home in
Block 32, located at the intersection of Third Street and Washington
Street. The Planning Commission held a public hearing on the
conditional use request and received a number of comments from
abutting property owners opposing the proposed duplex due to traffic
congestion that will occur and because of the present business
use being conducted at the property consisting of a carpet sales
showroom.
As a result of the existing non -conforming business use being
conducted at the property, it was the recommendation of the Planning
Commission that the duplex addition be denied.
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Council Minutes - 11/12/85
Mr. Larson appeared before the Council requesting that the conditional
use permit be allowed, as he felt he is supplying all of the needed
off-street parking requirements of the City Ordinance. The Council
reviewed the site plan and. City Ordinances and noted that at least
one enclosed parking space would be required for the duplex to
be allowed. Mr. Larson noted that he has currently a 3 -car garage
and that one space would be available as required by City Ordinances
for the duplex parking .requirements. The Council also, in response
to neighbors objections, indicated that if the permit was granted,
screening of the parking lot areas would have to be provided consisting
of trees and/or fencing to meet City Ordinances.
After further review and discussion, motion was made by Bill Fair,
seconded by Fran Fair, and unanimously carried to approve the
conditional use permit to allow for the duplex addition provided
all conditions of the Zoning Ordinance are met regarding the conditional
use request and that the two following additional restrictions
apply:
1. That screening consisting of plantings and/or fencing
shall be constructed on the west and south sides of the
outdoor parking areas.
2. That two stalls of the garage would have to be permanently
open and available for parking at all times for occupants
of the dwelling and could not be used for carpet storage
or sales.
12. Consideration of a Conditional Use Request to Allow Open and Outdoor
Storage and Rental Equipment in a B-3 (Highway Business) Zone -
Applicant, Suburban Gas.
This item was withdrawn from the agenda as a result of the request
being tabled by the Planning Commission for lack of complete information.
If the item is reconsidered by the Planning Commission at a future
date, the request will then be considered by the Council.
13. Consideration of a Request for Rezoning and Preliminary Plat Approval -
Applicant, John Sandberg.
Mr. John Sandberg had proposed to rezone and replat portions of
the existing blocks and lots in the Meadows Addition. Since the
Planning Commission had not completed its review of the project
and had not taken formal action on the proposal, a motion was
made by Bill Fair, seconded by Dan Blonigen, and unanimously carried
to table this item until a future Council meeting to allow for
written comments and, background to be presented from the staff
and to allow for Planning Commission comments to be reviewed.
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Council Minutes - 11/12/85
14. Additional Quarterly Department Reports.
Sergeant Don Lindell of the Wright County Sheriff's Department;
Mike Melstad, representing the YMCA; and Karen Hanson, Sr. Citizen
Center Director, appeared before the Council to review quarterly
department reports.
15. Consideration of Gambling License - Cystic Fibrosis Society.
City Administrator informed the Council that the Cystic Fibrosis
Society of Minneapolis has applied for a Class B Gambling License
from the State to allow raffles, etc., to be conducted at Charlie's
West in Monticello. The State Gambling Board allows city councils
to supply comments regarding the license applications before issuance.
Concerns were expressed by the Council members over organizations
from outside of Monticello having gambling licenses and felt that
approving this license would not be in the best interest of the
City.
As a result, motion was made by Maxwell, seconded by Blonigen,
to adopt a resolution recommending to the State Gambling Board
that this application be denied. Voting in favor was Maxwell,
Blonigen, and Grimsmo. opposed was Bill Fair and Fran Fair.
See Resolution 1985 #28.
Rick Wolfstell
Assistant Admie istrator
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