City Council Minutes 06-11-1984MINUTES
REGULAR MEETING - MONTICELLO CITY COUNCIL
June 11, 1984 - 7:30 P.M.
Members Present: Arve A. Grimsmo, Jack Maxwell, Fran Fair, Dan Blonigen.
Members Absent: Ken Maus.
1. Call to Order.
2. Approval of Minutes.
Motion was made by Blonigen, seconded by Maxwell, and unanimously
carried to approve the minutes of the regular meeting held May 29,
1984.
4. Public Hearing - Consideration of Issuance of Industrial Revenue
Bonds, Applicant - Stuart Hoglund.
A public hearing was held by the City Council to consider Stuart
Hoglund's request for issuance of Industrial Revenue Bonds in the
amount of $550,000.00 for the construction of a 32 -unit motel.
Mr. John Gries, attorney representing Mr. Hoglund, noted that the
original application for Industrial Revenue Bonds was for $650,000.00
but has been reduced to $550,000.00. He also noted that the development
should provide 20 full-time employees, not 12 as initially stated. Mr.
Gries noted that even if the City Council approves this preliminary
application for Industrial Revenue Bonds, the developer is fully
aware that the State Department of Energy and Economic Development
has final authority for authorizing Industrial Revenue Bonds to be
approved.
Mayor Grimsmo introduced for the record a letter received from the
present owners of the Silver Fox Motel expressing their opposition
to the City involvement in issuance of Industrial Revenue Bonds for
additional motel rooms within the City. Silver Fox management noted
that although Industrial Revenue Bonds are an incentive for developers,
the current motel rooms within the City are not yet operating near
capacity on a year-round basis and felt that the City should not
help promote additional motel development until a need is established.
Mayor Grimsmo noted that the City's first approval of Industrial
Revenue Bonds was for the Silver Fox Motel, but at that time, the
City of Monticello did not have any motel rooms within the City limits.
Applicant Stuart Hoglund felt the need is still a reality in the City
and noted that he has large assessments for improvements against his
property and felt that something has to be built and requested that IRS's
be considered to help finance the project.
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Concerns were raised by Council members as to what direction the
City should be taking in the future when supporting Industrial
Revenue Bond applicants. Specifically, Council concerns centered
on whether the City should be involved in commercial or industrial
development as IRB's were initially intended for. Although no
general consensus was or has been yet established as guidelines by
the City, it was noted that generally the City is trying to provide
incentives for new businesses to locate within the City to provide
not only tax base increases but also employment, and specially in
areas the City currently does not have businesses.
Hearing no comments from the public, the public hearing was officially
closed.
5. Consideration of a Resolution Granting Preliminary Approval for
the Issuance of Industrial Revenue Bonds.
After further discussion on Mr. Hoglund's IRB request, a motion
was introduced by Maxwell to adopt a resolution giving preliminary
approval to Mr. Hoglund's IRB project. The motion died for a lack
of a second. As a result, no other motion was entered and pre-
liminary approval was not granted for this project.
6. Consideration of Sewer Extension for Bondhus Property.
At the previous Council meeting, the City Council passed a resolution
to add a portion of water main to the Hart Boulevard project to allow
for future crossing on County Road 75 for hook-up to the Bondhus
Tool property. The sewer connection was tabled for lack of adequate
bids.
Public Works Director ,john Simola noted that so far only one firm
quote has been received for providing sewer service to the Bondhus
property estimated at $19,666.00 for connection to the interceptor
sewer line. Mr. Simola, along with John Bondhus, felt that this cost
was excessively high,and Mr. Simola was still optimistic that a cost
estimate can be obtained in the $10,000 to $12,000 range.
As a result, motion was made by Fair, seconded by Blonigen, and
unanimously carried to allow the Bondhus Tool Company to connect
to the interceptor sewer line providing 100% of the cost is charged
to the Bondhus property.
7. Consideration of the Renewal of Annual Licenses.
Motion was made by Blonigen, seconded by Fair, and unanimously carried
to approve the issuance and renewal of the following annual licenses:
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Intoxicating Liquor, On -sale (Fee $3,300)
Renewals
1. Monticello Liquor, Inc.
2. Silver Fox
3. Charlie's West
4. Joyner's Lanes
Intoxicating Liquor, On -sale, Sunday (Fee $100)
Renewals
1. Monticello Liquor, Inc.
2. Silver Fox
3. Charlie's West
4. Joyner's Lanes
Non -intoxicating Malt, On -sale (Fee $245)
Renewals
1. Rod & Gun
2. Pizza Factory
3. Country Club
Non -intoxicating Malt, On -sale, Temporary (Fee $10/day)
1. St. Henry's Fall Festival, 2 days - $20.00
Non -intoxicating Malt, Off -sale (Fee $50.00)
1. Monticello Liquor
2. Ernies Sport & Bait Shop
3. Wayne's Red Owl
4. Maus Foods
5. River Terrace
6. Tom Thumb
7. Charlie's West
8. Holiday
Wine/3.2 Beer Combination, On -sale (Fee $400)
Renewal
1. Dino's Deli
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Set-up License (Fee $250)
1. Country Club
2. Rod & Gun
Club Licenses (Fee - set by Statute)
1. V.F.W. - $500 (membership 268)
2. Am. Legion - $650 (membership 580)
Bingo, Temporary (Fee $20)
1. St. Henry's Fall Festival
Gambling, Temporary ($20 per device)
1. St. Henry's Fall Festival - $60
Rick Wolf steller
Assistant Administrator
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