City Council Minutes 01-29-1990
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MINUT S
SPECIAL MEETING - MONT CELLO CITY COUNCIL
Monday, January 29, 990 - 7:00 p.m.
Members Present:
Ken Maus, Fra
Anderson, Dan
Fair, Warren smith,
10nigen
Shirley
Members Absent:
None
2a.
2b.
Consideration of accept~!.~. fJibili.!:,y re.l20Y'1: and estimate of
costs for street and utilitv 1m rovements to 7th street and
Minnesota street. ~
Consideration
re ort for im
Council reviewed the feasibil"ty report and hydrologic study
completed in conjunction with development of the K-Mart
addition. The information co tained in both reports provided
cost information that assists the City in developing a finance
plan for the public improvem nts associated with the K-Mart
project. In addition, t e hydrologic study provides
information that allows th City to complete short-term
planning for the management f storm water created by the
K-Mart addition and also provides information that assists the
City in its planning for fut re storm water improvements in
the area.
After discussion, motion made by Shirley Anderson,
seconded by Fran Fair, to ac ept the feasibility report and
estimate of costs for street and utility improvements to 7th
Street and Minnesota Street nd accept hydrologic study and
feasibility report for im rovements to the 7th street
watershed. Motion carried u animously.
3 .
Consideration of ro'ect fi ance Ian and consideration of
revised Ian for use of tax ncrement financin .
Assistant Administrator 0' eill outlined two plans for
construction and financing of the improvements associated with
the 7th Street improvement roject/K-Mart development. He
noted that on September 25, 1989, Council adopted the basic
package for use of tax incre ent financing, which called for
use of TIF primarily for cost associated with realignment and
construction of 7th Stree. After adding soft costs,
including bonding, capitaliz d interest, and contingency, the
original level of TIF con ribution amounted to $470,000.
Subsequent to September 25, 989, TIF approval, Council acted
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Spec al Council Minutes - 1/29/90
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to remove the Kramer property rom the list of property to be
acquired, which resulted in a net reduction of $129,000.
O'Neill reported that chan es to the plan for public
improvements, along with the development of more detailed
engineering data, necessitate another look at the project
finance plan. The origin I finance plan called for
development of the 7th Street ight-of-way along a grade that
would have allowed the Hornig property to have access to 7th
Street right-of-way on the sou h side of the Hornig property.
Due to the need to elevate 7th treet, project costs increased
and caused the elimination of Hornig property access to 7th
Street right-of-way. O'Neill hen went on to review two basic
proposals for public improvements and financing of
improvements for Council revi w. The first proposal called
for development of total priva e and public improvement costs
in the amount of $822,000. Th second plan calls for a total
public and private improvement cost of $752,000. O'Neill went
on to break down the propose sources of funding for both
plans. O'Neill noted that the added expense associated with
the first plan involves added sanitary sewer and water cost
associated with extending sew r and water from its present
position at the intersection o. Minnesota and 7th Street all
the way to the freeway. Under the second alternative, sewer
and water would not be extend d to the freeway and would be
terminated at the intersectio of 7th Street and Minnesota
Street. The added cost of thi alternative is approximately
$38,000. The first alternativ also calls for development of
additional storm water sectio which would service drainage
coming from the Brennan prope ty. The added cost of this
improvement amounts to approxi ately $32,000.
O'Neill also reviewed the finan e plan which proposed deferral
of assessments against the B ennan property for the storm
sewer and sanitary sewer until such time that those utilities
would actually be utilized. I addition, the plan called for
deferring The Lincoln Companies' sewer and water assessment
until such time that the parcel immediately west of the K-Mart
site is developed. O'Neill oted that the tax increment
financing district proceeds can be used to pay for the cost of
the improvements. At the same time, the City, on a deferred
basis, may assess the benefi ing property owners for the
improvements that have been re eived.
of designing the plans as
of scaling back the plans
are excessive. He also noted
to pay an assessment in the
property
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Dan Blonigen supported the con
outlined in plan #1 with an op
in the event the project costs
that Mr. Brennan should agree
future equal to the benefit hi
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Spec"al Council Minutes - 1/29/90
receives with the installatio of the utilities as proposed.
Blonigen also noted that the p tential assessment against the
Brennan property should be orded against the property.
Warren Smith noted that the pu lic improvements as proposed in
plan #1 are acceptable and th t they look toward the future
while staying within financia means.
Shirley Anderson was concerned about the precedent that might
be set by deferring some of t e assessments associated with
the improvement project.
Fran Fair noted that in her
object to extending the sanit
Minnesota street to a positio
placed under the freeway, the
the south side of the freeway
view, the citizens would not
ry sewer and water lines from
where they can be more easily
eby encouraging development on
Ken Maus, in reviewing the fi ance plan, noted that the plan
is consistent with Council's original concept adopted in
September of 1989.
Chuck DuFresne of The Lincoln ompanies noted to Council that
his company prefers option #1
Pat pelstring noted that the C ty could develop a TIF plan and
distribute it based on financ plan #1. Council at a later
date can always make reductio s but not additions.
After discussion, motion was ade by Fran Fair, seconded by
Shirley Anderson, to approve construction and finance plan #1
and include both option #1 and option #2 in the development of
plans and specifications fo the 7th Street improvement
project. Plan #1 should inc ude development of 7th street
storm sewer. Final design is to be addressed at the public
hearings on the improvements and at the TIF public hearing
scheduled for March 12, 1990. Motion carried unanimously.
4.
hearin on street and
and Minnesota Street.
for Februar 12 1990.
Motion was made by Fran Fair seconded by Warren Smith, to
call a public hearing on t e 7th Street/Minnesota Street
improvement project, public h aring to be conducted
February 12, 1990. Motion ca ried unanimously.
SEE RESOLUTION 90-3.
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Spec al council Minutes - 1/29/90
There being no further discussion, the meeting was adjourned.
/;{1 ~/Z~
Jeff O'Neill
Assistant Administrator
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