City Council Minutes 11-10-2003 Special Meeting 2MINUTES
SPECIAL MEETING - MONTICELLO CITY COUNCIL
Monday November 10, 2003 - 6 p.m.
Members Present: Roger Carlson, Glen Posusta, Robbie Smith, Brian Stumpf and Bruce
Thielen.
Members Absent: None.
1. Call to Order.
Mayor Thielen called the meeting to order at 6 p.m. and declared a quorum present.
2. Presentation - 011ie Koropchak, Economic Development Director.
011ie Koropchak, Economic Development Director, made a presentation to the Council
concerning the Industrial Land Group Subcommittee's work in coming up with potential sites for
a city owned industrial park. Initially five sites were considered and through a review process
the subcommittee narrowed it down to two sites, the Monticello Commerce Center and the Otter
Creek Crossing sites. The city's financial consultant did a cost analysis for the two sites. 011ie
Koropchak reviewed the cost analysis information with the Council. Based on the cost analysis,
the Otter Creek site became the primary focus.
( 011ie Koropchak presented a map of the area and noted several issues relating to the
infrastructure including road access and location of the lift station. City Engineer, Bret Weiss
stated the lift station could be placed at either County Road 39 or located on "Center Road" but
he felt the preferable site would County Road 39 because the trunk lines are there. He also felt it
would be more advantageous to have Chelsea Road going through all the way to County Road 39
as this would open up the lots along the freeway. Bruce Thielen asked if the site had been mined
out. Bret Weiss responded that only a corner of the property has been mined.
011ie Koropchak reviewed the recommendations of the Industrial Land Group Subcommittee.
The Otter Creek Crossing developer offered to sell the land at $.61/SF but this offer would expire
on November 15, 2003. The recommended counteroffer is $.55/SF because of the high cost to
provide the infrastructure. Glen Posusta asked about the mining operation and whether the
reclamation work would be completed prior to any purchase. 011ie Koropchak replied that the
City Engineer and City Attorney would have to advise on the mining issues. Bruce Thielen
asked how much of the proposed land cost had been funded. 011ie Koropchak indicated that the
HRA and the City had combined reserve totals of $931,000.
Bruce Thielen asked if it is known yet what the relocation cost would be fore the redi-mix plant.
There was some discussion on the relocation of the plant to the Otter Creek Crossing site and
where would be an appropriate location for the plant. Jeff O'Neill felt the better site for the redi-
mix plant would be along TH 25 because of the direct access. Glen Posusta asked if it was
certain that the plant wanted to remain in Monticello. Brian Stumpf asked about the difference in
�� square foot cost between the property along the new road and the property by the freeway and
Special Council Meeting Minutes- I I/ 10/03
questioned why the City didn't acquire the land along the freeway. It was noted that the freeway
property would probably run about $3.50/SF.
Rick Wolfsteller addressed some financial implications for the City. A contract for deed would
have a proposed interest rate of 7% which is more that the City is currently earning on most of its
investments so if the City did pursue acquisition of the property they would look at utilizing
reserve funds. However, the City does have others items to consider such as the library
expansion and the redi-mix relocation. While the City could use their reserves to purchase the
land they would probably need to borrow funds to put in utilities. It was also noted that access
on Chelsea Road is still a problem since the City does not have the right of way.
Bruce Thielen questioned whether the City wanted to be owners of an industrial park and was the
Council comfortable making this type of investment. 011ie Koropchak stated that one owns the
land it changes the marketing strategy. The City can't market a land price because the City
doesn't own any land. 011ie Koropchak asked if the recommendation of the subcommittee is on
the Council is comfortable with which was to proceed with preparation of a purchase agreement
and to look at terms. Bruce Thielen stated he felt uncomfortable with this until the City knows
about the cost to relocate the redi-mix plant. Rick Wolfsteller said if the Council was not ready
to make a decision they could ask for an extension. Brian Stumpf wanted assurances that the
funds were there if the City decided to purchase the land. Rick Wolfsteller said reserves in the
general fund and money budgeted for the last five years would cover the land costs but it would
leave the City with very little reserves for other projects and the City would need to borrow in
order to put in the infrastructure. Mary Barger stated that the City owns the Remmle property
which could be sold. She stated that the subcommittee was asking for permission to negotiate
the terms of a purchase agreement. Bret Weiss suggested that the City may want to continue
negotiations over the next 45 days and bring back a purchase agreement after the first of the year.
By that time more will be known about the cost for the CSAH 18/I-94 interchange and the cost
to relocate the redi-mix plant. 011ie Koropchak stated that the City is making a counter offer.
There was no negotiations prior to Chadwick presenting his offer. Mary Barger said the
subcommittee felt if the property is purchased and improvements go in, the property along the
freeway would develop fairly quickly and bring money into the City.
3. Adjourn
Bruce Thielen adjourned the special workshop meeting at 7 p.c-n.
Recording Secretary
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