City Council Minutes 04-27-1987MINUTES
REGULAR MEETING - MONTICELLO CITY COUNCIL
Monday, April 27, 1987 - 7:30 p.m.
Members Present: Arve A. Grimsmo, Fran Fair, Bill Fair, Warren Smith,
Dan Blonigen
Members Absent: None
2. Approval of Minutes.
Motion was made by Fran Fair, seconded by Blonigen, and unanimously
carried to approve the regular minutes of the meeting held April 13,
and the special meeting held April 20, 1987.
4. Public Hearing on a Proposal to Apply for a Small Cities Economic
Development Grant.
On April 13, 1987, the City Council adopted a resolution authorizing
the execution of a Small Cities Economic Development Grant for the
NAWCO Minnesota, Inc., and set a public hearing for April 27, 1987.
The grant applied for will be used to assist the Norwegian Window
Company in establishing their business venture in Monticello. The
grant request was for $250,000 which will be loaned by the City to
the Window Company at a low interest rate over approximately a 15
year period.
Hearing no comments from the public, the public hearing was closed
and the grant application will proceed.
5. Public Hearing on Tax Increment District #7 and Finance Plan.
NAWCO Minnesota, Inc., proposes to construct a 28,400 sq ft office/
manufacturing facility on Lots 11 and 12, Block 2, Oakwood Industrial
Park. The City of Monticello is proposing to establish a tax increment
district for these parcels which, according to the finance plan,
is estimated to capture tax increments from the new project which
will be sufficient to retire a bond indebtedness of $155,000. The
proposed finance plan for the district indicates that the HRA will
purchase the two lots in Oakwood Industrial Park and in turn sell
the property to the NAWCO at a reduced price of $15,000. The difference
between the estimated project cost of $170,000 and the $15,000 sale
price would be received over the district life of eight years from
tax increments generated by the new construction.
Hearing no comments from the public in regards to the proposed Tax
Increment District #7, motion was made by Bill Fair, seconded by
Dan Blonigen, and unanimously carried to adopt a resolution establishing
the Tax Increment District #7 and adoption of the finance plan for
the said district. See Resolution 87-11.
m:.
Council Minutes - 4/27/87
6. Consideration of a Resolution Awarding Sale of $365,000 G.O. Tax
Increment Bonds.
Springsted, Inc., the City's Bond Consultant, received bids for the
sale of $365,000 in Tax Increment Bonds on Monday, April 27. Eight
bids were received for the bond issue ranging in a net interest cost
of 7.4856 percent down to a low of 7.1477 percent. The low bidder
for the bonds was First National Bank of St. Paul.
The bonds are to be used for improvements that will be made in the
Construction 5 Subdivision including extension of sewer and water
and street improvements. The bonds are anticipated to be fully retired
by the tax increments generated by the construction of multiple family
dwellings within the Construction 5 Subdivision.
Although the interest rates during the past month have started to
increase, Mr. Jerry Shannon of Springsted, Inc., felt that the rate
of 7.1477 percent received from the First National Bank of St. Paul
was very competitive with recent bond sales and recommended the sale
be awarded.
Bidder
Net Interest Cost & Rate
The First National Bank of St. Paul $197,872.50
(7.1477%)
Norwest Investment Services, Incorporated $198,166.67
(7.1583%)
Dain Bosworth Incorporated $198,805.42
(7.18141%
American National Bank St. Paul $1992019.00
Juran & Moody, Incorporated (7.1891%)
Piper, Jaffray & Hopwood Incorporated $1991455.83
(7.2049%)
Dougherty, Dawkins, Strand & Yost, Inc. $2002129.99
(7.2292%)
Moore, Juran & Company, Incorporated $202,395.57
(7.3110%)
Allison -Williams Company $207,227.23
(7.4856%)
A motion was made by Bill Fair, seconded by Fran Fair, and unanimously
carried to adopt a resolution authorizing and awarding the sale of
the $365,000 General Obligation Tax Increment Bonds to the low bidder,
-2-
Council Minutes - 4/27/87
First National Bank of St. Paul, at a net interest rate of 7.1477 percent
and authorizing the Tax Increment Pledge Agreement between the City
of Monticello and the Housing and Redevelopment Authority for tax
increments to cover the payments on the bond. See Resolution 87-12.
7. Consideration of a Resolution Accepting Bid and Authorizing the Execution
of a Contract for the Making of Public Improvements in Construction 5
Subdivision.
On March 17, 1987, the City received bids for the construction of
improvements within the Construction 5 Subdivision to be known as
the 86-7 project. The low bidder on the project was S & L Excavating
from St. Cloud, Minnesota, at a bid of $280,436.60. City Engineer,
John Badalich, has reviewed the bids and recommended that the contract
be awarded to S & L Excavating.
Motion was made by Fran Fair, seconded by Blonigen, and unanimously
carried to adopt the resolution accepting the bids and authorizing
a contract be entered into with the low bidder, S & L Excavating
of St. Cloud. See Resolution 87-13.
8. Consideration of Authorizing the Preparation of Topographic Maps.
As part of the requirements for a preliminary plat and final plat
for those individuals wishing to develop property in the City of
Monticello, the developer must prepare a topographic map of the area
which would include vertical contours of not more than two feet.
The information supplied by topographic maps is utilized in determining
proper development for a piece of property. Recently, the City has
been approached by Mr. Jim Boyle and Mr. Bill Block, his engineer,
in regards to topographic information for the Boyle property. The
developer has found it to be very expensive to get topographic information
on such a large piece of property and requested that the City obtain
this information and charge the developers for use of the information
pertaining to their property.
The City Engineer, along with the Public Works Director, have recommended
that the City engage a firm to prepare topographic maps of a large
area of the City of Monticello and the surrounding Orderly Annexation
Area which could be accomplished cheaper than individual property
owners acquiring this information themselves. The City Engineer
requested quotes from three firms covering two areas, one of 2,000 acres
and the second of approximately 3,200 acres. Both of the areas were
primarily south of the city limits of Monticello covering the Boyle
property, Monte Hill, and further southwest covering the Kjellberg
property. The quotes received were as follows:
-3-
Council Minutes - 4/27/87
AREA A (3,200 ACRES)
AREA B (2,000 ACRES)
Martinez Corporation $10,465 $ 61550
Horizons, Inc. $10,570 $ 7,400
Mark Hurd Aerial Mapping $21,000 $15,000
It was recommended that the City staff would determine an acreage
charge to charge developers when they request the topographic information
from the City that would enable the City to primarily recover its
cost over the next five to ten year period of time as the property
is developed. It was also recommended by the Public Works Director
that due to the economy of scale, the larger area of 3,200 acres
be mapped and that the quote from Horizons, Inc., for $10,570 be
accepted, as they have recently flown the area and have aerial photography
already that should provide adequate information for the topographic
maps.
Motion was made by Blonigen, seconded by Warren Smith, and unanimously
carried to authorize the expenditure of $10,570 for topographic maps
from Horizons, Inc., for the larger area of 3,200 acres. An additional
expenditure of approximately $2,000 would be necessary by the engineering
firm of OSM to cover ground control for the project. Staff was also
directed to establish a per acre charge that would recover the cost
when the information is sold to developers, etc.
9. Consideration of Bills for the Month of April.
Motion was made by Bill Fair, seconded by Warren Smith, and unanimously
carried to approve the bills for the month of April as presented.
10. Consideration of Granting Temporary Easement on East Bridge Park
Land to MN/DOT.
Administrator Eidem informed the Council that MN/DOT has requested
a temporary construction easement on an area in the East Bridge Park
for the purposes of the proposed Highway 25 Bridge construction scheduled
for start during the summer of 1987.
Motion was made by Bill Fair, seconded by Blonigen, and unanimously
carried to authorize the City Administrator and Mayor to sign the
necessary documents granting a temporary easement to MN/DOT for the
Mississippi bridge construction project.
, , 7"t
Rick WolfstelY/e"
r
Assistant Administrator
-4-