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City Council Minutes 11-25-1985MINUTES REGULAR MEETING - MONTICELLO CITY COUNCIL Monday, November 25, 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 Bill Fair, seconded by Maxwell, and unanimously carried to approve the minutes of the regular meeting held November 12, 1985. 4. Public Hearing on Modification #2 to the Central Monticello Redevelopment Project and Plan. The Central Monticello Redevelopment Project is the empowering district created by the Housing and Redevelopment Authority wherein the City may utilize Tax Increment Financing to achieve its redevelopment goals and objectives. Recently, Mr. John Bergstad, a developer, has expressed interest in converting the existing Monticello -Big Lake Nursing Home into an elderly housing project once it is discontinued as a nursing home. The HRA has been investigating utilizing Tax Increment Financing to assist Mr. Bergstad in his efforts to convert the structure for this purpose and as a result, recommended that the boundaries of the Central Redevelopment Project area be expanded to include Blocks 28 & 39 for this purpose. It was noted that by including these two blocks in the project area, Tax Increment Financing could be used but would not be required. The inclusion of these two blocks in the Redevelopment Project area would allow the HRA possible other alternatives for helping a developer to convert the nursing home even if Tax Increment Financing was not used. Motion was made by Fran Fair, seconded by Blonigen, and unanimously carried to adopt a resolution modifying the Central Monticello Redevelopment Plan to include Blocks 38 & 39 within the boundary area. See Resolution 1985 429. 5. Public Hearing on Establishing Tax Increment District #7. A public hearing was proposed. to consider establishing a Tax Increment District #7 for developer, John Bergstad, for the purpose of converting the nursing home. At the request of Mr. Bergstad, this item was tabled for the present time to allow Mr. Bergstad to further develop his plans. on Council Minutes - 11/25/85 6. Public Hearing - Proposed Amendments to the Monticello Zoning Ordinance. A public hearing was held by the Council to consider adoption of proposed amendments to the Monticello Zoning Ordinance text and zoning map. The hearing was opened to the public, and the following comments were received from the public. Mr. George Kirscht, property owner in Block 30, requested that the proposed zoning of Block 30 from R-2 to B-4 Commercial be eliminated. Mr. Kirscht noted that the current B-4 property in the area has not yet been developed commercially and wondered why the City would want to enlarge the zoning area for more commercial when the demand was not there at the present time. Mae Hoglund, property owner also in Block 30, opposed the rezoning to commercial and requested that the property remain residential in nature. Cecile Muehlbauer spoke in opposition to the proposed PZ -R Zoning along River Street to allow multiple dwellings to exist. Mrs. Muehlbauer noted that the majority of the residents along River Street still oppose the change from single family residential to PZ -R and requested that if the Council did approve the zoning change that efforts be made to ensure that the Planning Commission and City Council keep adequate controls on the types of buildings that could be constructed, including setbacks, sizes, architectural design, to minimize the effects on the neighboring residences. Other residential property owners along River Street, including Lee Robideau and Lyle Olson, spoke in opposition to the proposed PZ -R rezoning and felt that the area should remain single family residential. Written comments from property owners Roger Host, Don Nicolai, and Mike Erkel were entered into the record opposing the PZ -R zoning along River Street. Mr. John Sandberg presented a petition to the Council listing individual residents of Monticello who were in favor of some sort of multiple zoning along the river. Mr. Sandberg spoke to the Council in favor of the proposed PZ -R zone; and in his opinion, he did not think that the PZ -R zone would change the atmosphere of the present residential property along the river in that only a few areas would be suitable for multiple type housing. Mr. Sandberg noted that the majority of the housing starts in the City during 1984 and 1985 have been multiple, but currently there is no zoning area along the river allowing multiple housing sites. Mr. Sandberg felt that river frontage should not be exclusively singled out for single family residential property and that multiple structures could be incorporated into the City zoning plan. Hearing no other comments from the public, the public hearing was closed. The Council then discussed and presented their views on the proposed rezoning, including the proposed commercial zone -2- Council Minutes - 11/25/85 in Block 30 and proposed PZ -R zone along River Street. Mayor Grimsmo was in agreement with Block 30 remaining R-2 for single and two family residential and agreed that he did not see the pressure immediately to rezone additional commercial land in this area. In regards to the PZ -R zone, Mr. Grimsmo noted that possibly areas further east of River Street could provide multiple housing sites that would still allow the residents to see the river, but it was his opinion that possibly River Street should remain single family. Council members Blonigen and Maxwell agreed with Mayor Grimsmo's comments and recommended that Block 30 remain R-2 in zoning and that the PZ -R zone be eliminated along River Street. Councilmember Fran Fair noted that her original reason for pursuing the proposed PZ -R zone was to allow for long range planning into the future to allow areas along the river to contain some multiple building sites for Monticello residents who may wish to have access or views to the river. Mrs. Fair felt that a well-planned multiple housing development along the river would not be a detriment to neighboring residential properties if proper controls were retained by the City Planning Commission and City Council and felt that some of the vacant property along River Street could be developed for single family purposes and be more of a detriment than a well-planned multiple development. Bill Fair felt that the proposed PZ -R zoning was good long range planning for the City and that enough controls would be present to minimize any effects a development would have on abutting property owners. It was Mr. Fair's opinion that if the PZ -R zone is eliminated, the City will be facing the same question again in the future as more of the larger, single family homes along River Street eventually deteriorate and multiple housing is proposed again. After considerable discussion by the Council members, a motion was made by Fran Fair, seconded by Blonigen, to instruct the City staff to revise the zoning map to eliminate commercial zoning on Block 30 and to eliminate the PZ -R zones along River Street with the public hearing to continue until January 13, 1986, for final adoption consideration. Voting in favor was Grimsmo, Fair, Blonigen, Maxwell. Voting in the opposition: Bill Fair. 8. Consideration of Approving a Concept Plan for Replatting and Rezoning the Meadows - Applicant, John Sandberg. A formal request for approval of a preliminary plat and rezoning appeared on the Planning Commission agenda and the City Council agenda November 12, 1985. The public hearing was held by the Planning Commission at the same time the City Council was meeting. Substantial opposition from the area residents of the Meadows development appeared at the Planning Commission hearing to object to the proposed rezoning arAd replating. The matter was never pass,_u,d on by the Planning Commission and as a result the City Council tabled action at �s,he last meeting. -3-- Council Mi.autes — 1 1/25/85 Be .<,.use -A o r.Lal action was not taken by the P -anning Commission or the Council, Mr. Sandberg requested that the Council now consider the concept of multiple housing within the Meadows development and the proposed rezoning that would go with it. Mr. Sandberg noted that his proposed R-3 zoning from a planning perspective is appropriate for the area since it allows for a transition from single family residential zoning in the Anders -Wilhelm Estates and Balboul Estates area to R-2 zoning surrounding the Meadows to his proposed multiple R-3 zoning in the middle of the Meadows development which would lead to the proposed heavy industrial zoning on the Klucas property. Mr. Sandberg noted that presently it is not feasible to develop the Meadows subdivision as currently platted with the addition of streets and sewer and water that would have to be constructed. His estimated cost for completing the project as currently platted for single family and duplex homes would cost approximately $14,000.00 per lot which he felt would be unfeasible. Mr. Sandberg's proposal to replat the interior area of the Meadows would create seven multiple apartment sites that could provide up to 196 multiple apartments. Mr. Sandberg also noted that it was his intention to purchase the Klucas property lying west of the Meadows plat for the purpose of extending Marvin Elwood Road to River Street and he indicated he would also clean up the site by removing all junk from the property. Mayor Grimsmo and Councilman Blonigen questioned whether replatting for additional 196 units of multiple housing would be in the best interest of the City since this would create many more housing sites than the City's comprehensive plan allows for. The comprehensive plan indicates that multiple housing units should not exceed 30% of the available single family sites in the City and it was noted by the Administrator that the City has occupied or in the planning stages multiple housing units that exceed the 30% limitation. The Administrator also noted that the City Planner did not feel it would be unreasonable to increase that percentage to 400 of single family lots since the City has experienced rapid growth and does have low vacancy rates on its existing apartment buildings. Councilman Blonigen felt that the rezoning and replatting of the Meadows for multiple housing sites appeared to be proposed strictly for an economic advantage to the developer and was not convinced that the additional multiple sites were necessary. Councilman Maxwell and Bill Fair were agreeable to requesting additional detail plans for the replat but were concerned over how the single family areas adjacent to the proposed replat would be protected from a multiple apartment dwelling. After further discussion, a motion was made by Fran Fair, seconded by Maxwell to endorse the general concept of some additional R-3 zoning to be included in the Meadows plat and requested further detail plans on the proposal. Voting in favor was everbody but Blonigen who opposed. Council Minutes - 11/25/85 9. Consideration of Respreading Special Assessments in the Meadows - Applicant, John Sandberg. Mr. John Sandberg requested approval of the Council to respread the special assessments within the Meadows subdivision including delinquent and future balances amongst the currently buildable lots along Marvin Elwood Road and Prairie Road. The proposed reassessment would eliminate 12 assessments from interior lots that were previously platted within the Meadows that are not currently available for development and respread these amounts on an equalize basis on the 22 buildable lots that are currently immediately available for housing. With Mr. Sandberg's proposed replatting to create multiple family lots and additional single family lots, the proposed respreading of the assessments would total $7,400.00 for 19 single family lots with double assessments of $14,799.00 for each of the three proposed multiple family lots abutting Marvin Elwood Road. As part of the respreading proposal, Mr. Sandberg would bring current all real estate taxes owing against the 46 lots within the development which would be immediately payable to the Wright County Auditor in the amount of $2,966.00. A motion was made by Bill Fair, seconded by Maxwell, and unanimously carried to approve the respreading of the delinquent and unpaid balances of the assessments in the Meadows against the lots abutting Marvin Elwood Road and Prairie Road per the proposed concept for replatting. 10. Review of Water System Analysis and Consideration of Improvements. Recently, the City Engineer presented a draft of the water system analysis for the City which recommended improvements to the system including a new ground level 800,000 stand pipe on Monti Hill with interconnecting piping on County Road 118 along with pump house modifications. In reviewing the report with the Public Works Department and City Staff, it was recommended that the improvements totaling an estimated $830,700.00 be constructed in the near future to upgrade the City's water system. The proposed improvements would meet the needs of the City until the year 2000 with an estimated population service space of approximately 5,600 people. In addition to the water system upgrading, it was recommended that a water main be installed under County Road 39 from County Road 75 to Mississippi Drive at a cost of approximately $50,000.00 prior to this segment of 39 being improved with permanenet street and curb and gutter. Primary discussion by the Council concerned how the project could be financed if approved and discussion centered on the three possible alternatives for financing the project. First alternative could be a 100% revenue bond which would require a substantial increase in the current water rates. Second alternative for a general obligation bond financed entirely by ad valorem taxes would require a referendum vote of the residents for approval. A third alternative could be to assess a minimum of 20% of the proposed cost with the balance collectable under ad valorem taxes which would not require a referendum. -5- Council Minutes - 11/25/85 It was the general consensus of the Council that upgrading of the water system appears necessary in the near future and it was the consensus to pursue alternate #1 which would include a water tower on Monti Hill with interconnecting piping and pumphouse improvements in the amount of $830,000.00 with an additional $50,000.00 for County Road 39 improvements. City Engineer was also requested to provide information on the second alternative which would also include additional water main along County Road 118 connecting under the freeway to Mississippi Drive at an additional $200,000.00. Under alternative #2, a portion of the cost could be assessible to property that would benefit from the water main extension. It was estimated that plans and specifications could be ready for bidding possibly early summer of 86 should this project be pursued. 11. Consideration of Final City Hall Roof Payment. Council Member Bill Fair reported to the Council on a meeting that took place between Mr. Greg Vetsch and his attorney along with City Administrator Tom Eidem, Building Inspector Gary Anderson and himself regarding the final payment on the City Hall roof project. Mr. Fair, in a letter to the Council, recommended that the City make a final payment for the entire labor contract to Mr. Vetsch as it was his opinion the City was the general contractor on the roofing project and should have been responsible for any liability insurance. Mr. Fair noted that there may have been some misunderstanding regarding insurance coverage that the contractor was supposed to have but the underlying result was that the City would be responsible as a general contractor and he did not believe the City had the right to withhold payments for any damages that occurred during the project. A motion was made by Maxwell, seconded by Blonigen, and unanimously carried to authorize final payment be made to Mr. Greg Vetsch in the amount of $7,200.00 per original agreement. 12. Consideration of Change Order Request for Monticello Fire Hall Project. A motion was made by Bill Fair, seconded by Maxwell, and unanimously carried to approve Change Order #2 on the Fire Hall construction project with Fullerton Lumber Company for the following items: 1. Addition of six parking spaces, extension of curb and gutter around the new parking spaces, additional five foot sidewalk and painting of parking spaces in the amount of $2,085.60. 2. Provide credit to the City for brick allowance, a deduct of $480.00. 3. Provide a half-inch gypsum board ceiling under areas having suspended ceiling. Add $480.00. Total Change Order #2 is $2,085.60. Council Minutes - 11/25/85 13. Consideration of Executing a Contract for Law Enforcement Services with Wright County Sheriff's Department. The Wright County Sheriff's Department has presented a new law enforcement contract with the City of Monticello for 1986. The proposed hourly rate will be $18.00 per hour which amounts to a 5.88% increase over the 1985 contract. The City is expecting 6,905 hours of patrol coverage annually which would amount to a contract totalling $124,290.00. A motion was made by Maxwell, seconded by Fair, and unanimously carried to approve entering into the new contract with the Wright County Sheriff's Department for law enforcement services for the City for 1986 in the amount of $124,290.00 for 6,905 hours of coverage at $18.00 per hour. 14. Consideration of Cancelling Second Regularly Scheduled Council Meeting for December. A motion was made by Fran Fair, seconded by Blonigen, and unanimously carried to cancel the second meeting of the City Council scheduled originally for December 23, 1985. 15. Approval of Bills. A motion was made by Blonigen, seconded by Maxwell, and unanimously carried to approve the bills for the month of November as presented. 16. Consideration of Gambling License - Knights of Columbus. The Knights of Columbus, Big Lake Council recently applied to the State Charitable Gambling Board for a Class B gambling license to conduct raffles, tipboards, paddlewheels etc. at Joyner's Bowling Alley in Monticello. The Knights of Columbus currently have a bingo license at the VFW Club in Monticello and request that the additional license for raffles etc. It has been Council's previous action to dissapprove gambling licences for private establishments, especially for organizations outside of the City of Monticello and as a result a motion was made by Blonigen, seconded by Grimsmo, to write a letter to the State Gambling Board recommending denial of this Class B Gambling Application. Voting in favor was Blonigen, Grimsmo, and Maxwell. Opposed was Fran Fair. Abstaining was Bill Fair. See Resolution 1985 #30. a, Rick Wolfstell r Adsistant Administrator -7-