City Council Minutes 04-09-1984MINUTES
REGULAR MEETING - MONTI CE LLO CITY COUNCIL
April 9, 1984 - 7:30 P.M.
Members Present: Arve Grimsmo, Jack Maxwell, Ken Maus, Fran Fair,
Dan Blonigen.
Members Absent: None.
1. Call to Order.
2 . Approval of Minutes.
Motion was made by Fair, seconded by Blonigen, to approve the minutes
of the regular meeting held March 26, 1984. Voting in favor was
Fair, Blonigen, Maus. Abstaining: Grimsmo and Maxwell due to their
absence at the last meeting.
4 & 6. Public Hearing - Fulfillment Systems, Inc., Tax Increment Finance
District, and Consideration of a Resolution ARjproving the Tax
Increment Finance District for Fulfillment Svstems , Inc.
The Council held a public hearing on the Redevelopment Project Plan
Modification #1, which consisted primarily of changes in the legal
language of the first Redevelopment Plan approved by the City. The
Modification #1 merely adds Statements of Statutory Authority and
references to particular chapters, sections, and subdivisions of
Minnesota Statutes. In addition, a section on environmental controls
would be added.
Hearing no comments from the public, motion was made by Blonigen,
seconded by Maxwell, and unanimously carried to approve a Resolution
adopting Modification #1 to the Monticello Redevelopment Project.
See Resolution 1984 #8 .
A public hearing was also held by the Council for the purpose of
considering establishing a Tax Increment Financing Economic District
#2 for Fulfillment Systems, Inc. FSI, Inc., has plans to construct
a 43,200 sq. ft. building on Lots 6, 7, and 8, in Block 2, Lauring
Hillside Terrace. The Tax Increment Financinq Economic Development
District #2 would have a duration of approximately 9' years with the
City collecting tax increments for the last eight years. The HRA
proposal would be to acquire Lots 6, 7, and 8, Block 2, for approximately
$130,000 and sell this property to FSI for the sum of $25,000 resulting
in a write down in the cost of the land to Fulfillment Systems in the
amount of $105,000. This $105,000 would be recaptured by the City
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during the eight years through tax increments estimated at approximately
$28,000 to $34,000 per year. The initial funds to acquire the property
would come from a bond sale proposed in the amount of $155,000.
Motion was made by Fair, seconded by Blonigen, and unanimously carried
to adopt the Resolution establishing a Tax Increment Financing Economic
Development District #2. See Resolution 1984 #9 .
7. Consideration of a Resolution Authorizing the Sale of Bonds.
Mr. Jerry Shannon of Springsted, Inc., the City's Bonding Consultant,
was present at the Council meeting to review the procedures necessary
for the City to authorize the sale of bonds for the Tax Increment
Financing Plan recently approved by the Council. The proposed sale
of bonds would be in the amount of $155,000 for the purpose of financing
the acquisition of land for Fulfillment Systems' Tax Increment Financing
Plan.
The $155,000 bonds would be payable over a 10 -year period of time at
an estimated 9% interest. Mr. Shannon noted that since this amount
is under $300,000.00, Springsted, Inc., may negotiate the sale on
the City's behalf without going to a formal bid process.
Motion was made by Maus, seconded by Blonigen, and unanimously carried
to adopt a Resolution authorizing Springsted, Inc., to solicit bids
and quotes for the sale of $155,000 in tax increment bonds by April 23,
1984. See Resolution 1984 #10.
5 & 8. Public Hearing and Consideration of Vacating Hennepin Street and the
Selling of the Street to Construction 5.
In October of 1983, the City Council held a public hearing and received
no negative comments regarding the vacation of Hennepin Street between
Lauring Lane and the Burlington Northern Railroad tracks.. Construction
5 was also the applicant at that time and the City Council asked a
price of $24,000 for the sale of the vacated street. Construction 5
had made a counter-offer of $6,500 for the street and there being no
further offers, the sale did not occur. The City Council then invalidated
its own motion to vacate Hennepin Street.
Recently, the City staff discovered that Construction 5 was excavating
fill material out of Hennepin Street to use at their construction site
adjacent to this street. Construction 5 was advised that they must
immediately cease their mining efforts and restore the street to
precisely the condition that it was found.
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Mr. Gus LaFromboise of Construction 5 then petitioned for the vacation
of Hennepin Street again, as he felt that he would not be able to
restore the street to its original condition. The City, in the
meantime, issued an excavation permit to Construction 5 in the amount
of $24,000 to cover the cost of restoration should a vacation and
sale not take place. It was noted by the City staff that if the
sale was authorized by the Council, the $24,000 would be applied to
the sale price.
No comments were heard from the public regarding the proposed
vacation of Hennepin Street between Lauring Lane and the Burlington
Northern Railroad tracks; and as a result, a motion was made by
Blonigen, seconded by Maus, and unanimously carried to vacate this
portion of Hennepin Street. Motion was also made by Maxwell, seconded
by Fair, and unanimously carried to approve the sale of this portion
of vacated Hennepin Street to Construction 5 at a total cost of $24,750
with the $24,000 excavation permit being applied to the purchase price.
9. Consideration of Amendment to the Zoning Ordinance Regarding Signs.
Recently, the Planning Commission recommended adoption of an
Ordinance Amendment that would clarify the number of signs and
the square footage of signs that would be allowed on an office
building that had more than one occupant or tenant. Previously,
the City Ordinance regarding signs did not clearly identify the
options available for a building that has more than one tenant
except for shopping centers.
The Ordinance Amendment proposed by the Planning Commission would
allow any principal building to have six sign boards or place cards,
no more than four of which may be product identification signs with
two walls allowed for display of the signs. The total maximum size
of the wall signs could not be more than 20% of the gross silhouette
area of the front of the building up to 300 square feet, whichever is
less.
In the case of a building where there were three or more business uses,
the owner of the building would have to apply for a Conditional Use
Permit and file with the Zoning Administrator a detailed plan for
signing including size of the signs and number, etc.. No tenant would
have more than one sign nor could one tenant exceed 25% of the total
allowable sign area.
Motion was made by Fair, seconded by Blonigen, and unanimously carried
to adopt an Ordinance Amendment regulating the number and size of signs
for a principal building including clarification for buildings with
more than one occupant. See Ordinance Amendment No. 133.
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10. Consideration of a Conditional Use Re nest, Applicant - Metcalf and
Larson.
Metcalf and Larson, owners of a new office building, requested a
Conditional Use Permit under the newly adopted Sign Ordinance to
allow 200 of their silhouette area of the building for a total of
224 square feet of sign footage. The proposal presented by Metcalf
and Larson would allow six individual signs with the maximum per
tenant being 56 square feet.
Motion was made by Maxwell, seconded by Blonigen, and unanimously
carried to approve the Conditional Use Permit for the Metcalf and
Larson Professional Building consisting of six signs for the
occupants as proposed in their plan.
11. Consideration of Amendment to the Zoning Ordinance Allowing More
than Five Children, Including Family's Own, in a Day Care or Foster
Care Home as a Permitted Use in an R-1 Zone.
Currently, the City Ordinances allow as Permitted Uses in an R-1
Single Family Zoning District foster homes provided there are no
more than five children, including the foster family's own children,
and a day care home also providing there are no more than five
children. In the past, several requests have been made by individual
home owners to allow for day care centers that may have in excess of
five children total including the family's own children. The state
legislature is currently considering passing legislation that would
require communities to allow up to 12 people in a day care facility
and up to six people in a foster care home. Since it appears likely
that this legislation will pass this session, it was recommended by
the staff that the Council consider amending its ordinance at the
present time to allow similar regulations as proposed by the state.
Motion was made by Fair, seconded by Blonigen, and unanimously carried
to adopt an Ordinance Amendment that would allow boarding homes or
for foster children to have up to six children, including the family's
own children and also to allow a day care home in an R-1 Zone to have
up to 12 children, including the family's own children. See Ordinance
Amendment No. 134.
12. Consideration of Renting the Saxon Property.
On March 30, 1984, the City completed the real estate transaction
acquiring the Bob Saxon property adjacent to East Bridge Park. The
potential use of the property will be for park expansion after the
Highway Department completes its proposed Highway 25 Bridge project.
In the meantime, a temporary City employee has indicated a desire to
rent the property from the City.
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The City staff in reviewing the condition of the home felt that a
small amount of capital outlay would be needed to clean up the home
and make it rentable. The City employee interested in the property
has indicated a willingness to do the work himself, and it was
recommended that if the Council decided to rent the property, a
$300 per month rental fee would be appropriate for the home.
Motion was made by Maus, seconded by Fair, and unanimously carried
to approve renting the Saxon property to the temporary City employee
in the amount of $300 per month with the first and last month's rent
payable in advance, and the rental to be on a month to month basis
without a lease.
13. Consideration of Health Course for Anders Wilhelm/Par West Park.
At the previous Council meeting, the City staff was directed to
look into several facets of the development of the Health Course
for the Anders Wilhelm/Par West Park. A map depicting the overall
development of the park including a planting schedule and an under-
ground sprinkler system was reviewed by the Council. John Simola,
Public Works Director, estimated that the total cost of the park
development would be approximately $17,300 without restroom facilities
but including paving of the parking lot and a picnic shelter. Of
this $17,300.00, part of the plantings of trees and shrubs in the
amount of $1,000 was recommended to be delayed for one year along
with the picnic shelter, which would reduce the cost to approximately
$15,300 in 1984.
The Council discussion centered on whether this type of park would
be used by the majority of the public or whether it would be a specialized
type of facility only for those interested in physical fitness. Although
it was noted it is a specialized activity, all of the City parks in one
way or another may not appeal to all of the residences,as some parks
have playground equipment just for children, others have boat launching
facilities which also are specialized.
The City Administrator informed the Council that he had researched
other communities which have Health Courses in their parks and
indicated that these communities strongly recommend this type of
installation. It was also noted that only $4,000 of the estimated
$15,300 pertains precisely to the Health Course facilities and that
the majority of the expenditures for the park would have to be done
regardless of what type of park development occurred.
Motion was made by Maxwell, seconded by Fair, to approve the expenditures
for 1984 totaling approximately $15,300 for the improvement of the
Anders Wilhelm/Par West Park with a Vita Health Course facility including
benches, trees and shrubs, black dirt underground sprinkling system, etc.
Voting in favor was Fair, Maxwell, Maus, Grimsmo. Voting in the opposition
was Blonigen.
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14. Consideration of Approval of Plans and Specifications for Additions
to Pump Houses 1 & 2 and Authorization to Advertise for Bids.
John Simola, Public Works Director, presented plans and specifications
for the new additions to Pump Houses 1 & 2. The estimated cost of
the two additions was $16,000. Mr. Simola requested that the plans
and specifications be approved as presented and requested that a
bid letting date of Monday, April 23, be approved.
Motion was made by Blonigen, seconded by Maxwell, and unanimously
carried to approve the plans and specifications for the additions
to Pump Houses 1 & 2 and to authorize the Public Works Director
to advertise for bids returnable Monday, April 23, 1984.
15. Consideration of Ordering Financial Feasibility Studies for Hart
Boulevard from the Hospital East to CountRoad 75 and Cedar Street
from the Burlington Northern Railroad to Lauring Lane.
The Public Works Director recommended to the Council that consideration
be given to improving Hart Boulevard and Cedar Street during 1984.
Cedar Street is presently a Class V surfaced street, and it was
recommended that this section of street be improved with curb and
gutter and bituminous surfacing. A significant portion of this
project could be assessed to the benefiting property owners.
Concerns were expressed by Council members as to whether all of
the sewer and water utilities were presently installed in Cedar
Street or whether any of this street would have to be torn up in
the future for the installation of sewer or water. It was noted
that the water main is currently installed along Cedar Street, but
the property adjacent does not have sewer service, which was planned
as part of the interceptor project in the future. It was also noted
by the Public Works Director that the installation of sewer at a future
date should not cause a problem, as the curb would be eliminated near
the railroad tracks where the interceptor would cross Cedar Street.
The section of Hart Boulevard from the Hospital past the Wastewater
Treatment Plant is currently bituminous surfacing but is in bad need
of repair. It was recommended that Hart Boulevard adjacent to
residential property be improved with curb and gutter and new
bituminous surfacing and that the balance of Hart Boulevard near
the Wastewater Treatment Plant to County Road 75 be blacktopped in
a rural type section without curb and gutter.
Motion was made by Maus, seconded by Maxwell, and unanimously carried
to authorize the City Engineer to prepare a feasibility study for
improving Cedar Street with bituminous surfacing only and to prepare
a feasibility study on improving Hart Boulevard with a combination of
curb and gutter near the residential area and blacktopping only for
the balance of the street. It was noted that the City Engineer in his
feasibility study will determine whether bituminous surfacing only on
Cedar Street is the best method rather than also installing curb and
gutter at the present time.
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16. Consideration of a Proposal for Professional Services for the City
Fire Hall.
At a previous Council meeting, the City staff had presented possible
site locations for a new Fire Hall and possible building layouts for
the new Fire Hall.
Mr. Jerry Corrick, of the City's Consulting Engineering Firm of OSM,
presented a proposal to the City Council offering their services with
Bernard Jacob Architects Ltd. to study the potential sites for
compatibility of a new Fire Hall and also present building layouts
to fit each potential site. The proposal would look at each
specific site to see how suitable the soils and location are for
a new Fire Hall and would also present basic building layouts for
the lots and estimated cost of construction for various types of
buildings. Mr. Corrick noted that the total fee for this service
would be approximately $2,000.00, but would not include a design
of a building, which would be a separate contract for architectural
services.
The Council noted that at the present time the City does not have
enough information on the availability and cost of the two or three
recommended sites and felt that the City is not in a hurry at the
present time to seek professional advice..
17. Consideration of a Resolution Setting a Public Hearing for Tax
Increment Financing, Applicant - IXI.
IXI, Inc., has indicated a desire to begin new construction at their
manufacturing complex in Oakwood Industrial Park. They are proposing
to purchase the remainder of Lot 7, Block 3, in Oakwood Industrial
Park and construct four new buildings in 1984. Previously, IXI
purchased half of Lot 7, Block 3, as part of the Tax Increment District
#1 and the intent now would be to sell the second half of the lot
and create another Tax Increment Financing District. In order to
consider establishing a new Tax Increment Financing District for
this new construction, a public hearing has to be held by the City
Council.
Motion was made by Blonigen, seconded by Fair, and unanimously carried
to adopt a Resolution setting Monday, April 23, 1984, as a date for the
public hearing regarding the establishment of a Tax Increment Financing
District #4. See Resolution 1984 #11.
18. Consideration of Issuing a 3.2 Beer License and a Set-up License to
the Monticello Lions Club and Issuing a 3.2 Beer License to the Monticello
Softball Association.
Mark Irmiter, representing the Lions Club, requested a one -day 3.2 Beer
License and a one -day Set-up license so that the Lions could again host
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the Ducks Unlimited Banquet at the Monticello Roller Rink.
The Monticello Softball Association also requested a 3.2 Beer
License to sell beer at the softball fields during the summer
months.
Motion was made by Maxwell, seconded by Blonigen, and unanimously
carried to approve the issuance of a 3.2 Beer License and a Set-up
License to the Monticello Lions Club for their Ducks Unlimited
Banquet May 7, 1984; and approve issuing a 3.2 Beer License to
the Monticello Softball Association for the summer months provided
appropriate bonds and insurance forms are submitted as required.
19. Department Head Reports.
The following Department Heads were present at the Council meeting
and reviewed items with the Council; Karen Hanson, Senior Citizens
Center Director; Gary Reitan, Wright County Sheriff's Department;
John Simola, Public Works Director; Allen Pelvit, Economic Development
Director; and City Administrator Tom Eidem.
Rick Wolf ste er
Assistant Administrator